-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, CkcfFZqjlJt27o9eH4LBwBySWNwrMIb7MS7TJqwSLBGI5GvYneJaiZ8JRDf0jqfa xk+fhO1x4ZLJvuPdv3RZXQ== 0000828803-09-000014.txt : 20090728 0000828803-09-000014.hdr.sgml : 20090728 20090728150050 ACCESSION NUMBER: 0000828803-09-000014 CONFORMED SUBMISSION TYPE: N-Q PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 20090531 FILED AS OF DATE: 20090728 DATE AS OF CHANGE: 20090728 EFFECTIVENESS DATE: 20090728 FILER: COMPANY DATA: COMPANY CONFORMED NAME: TEMPLETON GLOBAL INCOME FUND CENTRAL INDEX KEY: 0000828803 IRS NUMBER: 222864496 STATE OF INCORPORATION: DE FISCAL YEAR END: 0831 FILING VALUES: FORM TYPE: N-Q SEC ACT: 1940 Act SEC FILE NUMBER: 811-05459 FILM NUMBER: 09967018 BUSINESS ADDRESS: STREET 1: BROWARD FINANCIAL CENTRE STREET 2: 500 EAST BROWARD BLVD., SUITE 2100 CITY: FORT LAUDERDALE STATE: FL ZIP: 33394-3091 BUSINESS PHONE: 9545277500 MAIL ADDRESS: STREET 1: BROWARD FINANCIAL CENTRE STREET 2: 500 EAST BROWARD BLVD., SUITE 2100 CITY: FORT LAUDERDALE STATE: FL ZIP: 33394-3091 FORMER COMPANY: FORMER CONFORMED NAME: TEMPLETON GLOBAL INCOME FUND INC DATE OF NAME CHANGE: 19920703 N-Q 1 gim-nq_0509.txt GIM NQ 5/31/09 FORM N-Q QUARTERLY SCHEDULE OF PORTFOLIO HOLDINGS OF REGISTERED MANAGEMENT INVESTMENT COMPANY Investment Company Act file number 811-05459 TEMPLETON GLOBAL INCOME FUND ------------------------------ (Exact name of registrant as specified in charter) 500 EAST BROWARD BLVD., SUITE 2100, FORT LAUDERDALE, FL 33394-3091 -------------------------------------------------------------------- (Address of principal executive offices) (Zip code) CRAIG S. TYLE, ONE FRANKLIN PARKWAY, SAN MATEO, CA 94403-1906 --------------------------------------------------------------- (Name and address of agent for service) Registrant's telephone number, including area code: 954/527-7500 -------------- Date of fiscal year end: 8/31 ------ Date of reporting period: 05/31/09 --------- ITEM 1. SCHEDULE OF INVESTMENTS. Templeton Global Income Fund QUARTERLY STATEMENT OF INVESTMENTS MAY 31, 2009 CONTENTS Statement of Investments ................................................... 3 Notes to Statement of Investments .......................................... 9
(FRANKLIN TEMPLETON INVESTMENTS(R) LOGO) Franklin - TEMPLETON - Mutual Series Quarterly Statement of Investments | 1 This page intentionally left blank. Templeton Global Income Fund STATEMENT OF INVESTMENTS, MAY 31, 2009 (UNAUDITED)
PRINCIPAL AMOUNT(a) VALUE ------------------- -------------- BONDS 88.2% ARGENTINA 2.8% (b,c) Government of Argentina, senior bond, FRN, 1.683%, 8/03/12 ............... 98,977,000 $ 31,920,083 -------------- AUSTRALIA 7.2% New South Wales Treasury Corp., senior note, 5.50%, 3/01/17 .............. 36,971,000 AUD 28,812,135 Queensland Treasury Corp., 13, 6.00%, 8/14/13 ................................................... 38,901,000 AUD 32,174,716 17, 6.00%, 9/14/17 ................................................... 12,395,000 AUD 9,916,163 (d) 144A, 7.125%, 9/18/17 ................................................ 16,480,000 NZD 10,904,987 -------------- 81,808,001 -------------- BRAZIL 7.3% Nota Do Tesouro Nacional, 10.082%, 1/01/12 ..................................................... 41,835(e) BRL 20,901,189 10.082%, 1/01/14 ..................................................... 15,000(e) BRL 7,190,064 10.082%, 1/01/17 ..................................................... 54,900(e) BRL 25,398,153 (f) Index Linked, 6.00%, 5/15/15 ......................................... 9,400(e) BRL 8,460,196 (f) Index Linked, 6.00%, 5/15/45 ......................................... 23,625(e) BRL 20,522,848 -------------- 82,472,450 -------------- CANADA 1.3% Province of Manitoba, 6.375%, 9/01/15 .................................... 14,800,000 NZD 9,238,189 Province of Ontario, 6.25%, 6/16/15 ...................................... 8,460,000 NZD 5,297,477 -------------- 14,535,666 -------------- FRANCE 3.0% Government of France, 4.00%, 4/25/18 ..................................... 23,500,000 EUR 33,656,118 -------------- HUNGARY 2.0% Government of Hungary, 3.50%, 7/18/16 ....................................................... 700,000 EUR 811,001 4.375%, 7/04/17 ...................................................... 3,645,000 EUR 4,302,556 5.75%, 6/11/18 ....................................................... 12,120,000 EUR 15,484,784 senior note, 3.875%, 2/24/20 ......................................... 2,370,000 EUR 2,557,521 -------------- 23,155,862 -------------- INDONESIA 9.8% Government of Indonesia, FR19, 14.25%, 6/15/13 ................................................ 84,050,000,000 IDR 9,495,448 FR20, 14.275%, 12/15/13 .............................................. 81,836,000,000 IDR 9,324,852 FR26, 11.00%, 10/15/14 ............................................... 3,500,000,000 IDR 359,694 FR27, 9.50%, 6/15/15 ................................................. 34,890,000,000 IDR 3,356,763 FR30, 10.75%, 5/15/16 ................................................ 87,035,000,000 IDR 8,859,980 FR31, 11.00%, 11/15/20 ............................................... 335,739,000,000 IDR 33,190,520 FR34, 12.80%, 6/15/21 ................................................ 59,666,000,000 IDR 6,610,229 FR35, 12.90%, 6/15/22 ................................................ 32,530,000,000 IDR 3,588,101 FR36, 11.50%, 9/15/19 ................................................ 23,000,000,000 IDR 2,363,703 FR42, 10.25%, 7/15/27 ................................................ 25,430,000,000 IDR 2,242,733 FR43, 10.25%, 7/15/22 ................................................ 8,450,000,000 IDR 778,074 FR46, 9.50%, 7/15/23 ................................................. 41,250,000,000 IDR 3,567,783 FR47, 10.00%, 2/15/28 ................................................ 52,895,000,000 IDR 4,523,575 FR48, 9.00%, 9/15/18 ................................................. 18,520,000,000 IDR 1,651,321
Quarterly Statement of Investments | 3 Templeton Global Income Fund STATEMENT OF INVESTMENTS, MAY 31, 2009 (UNAUDITED) (CONTINUED)
PRINCIPAL AMOUNT(a) VALUE ------------------- -------------- BONDS (CONTINUED) INDONESIA (CONTINUED) Government of Indonesia, (continued) (d) senior bond, 144A, 8.50%, 10/12/35 ................................... 2,952,000 $ 3,033,180 (d) senior bond, 144A, 6.625%, 2/17/37 ................................... 2,090,000 1,776,500 (d) senior bond, 144A, 7.75%, 1/17/38 .................................... 7,050,000 6,655,955 (g) senior bond, Reg S, 8.50%, 10/12/35 .................................. 5,510,000 5,661,525 (g) senior bond, Reg S, 7.75%, 1/17/38 ................................... 3,310,000 3,124,995 -------------- 110,164,931 -------------- MALAYSIA 1.3% Government of Malaysia, 3.869%, 4/13/10 ...................................................... 7,500,000 MYR 2,182,581 3.702%, 2/25/13 ...................................................... 3,370,000 MYR 967,410 3.70%, 5/15/13 ........................................................ 1,290,000 MYR 368,340 3.461%, 7/31/13 ...................................................... 20,100,000 MYR 5,676,309 3.814%, 2/15/17 ...................................................... 19,530,000 MYR 5,492,222 -------------- 14,686,862 -------------- MEXICO 4.9% Government of Mexico, 8.00%, 12/07/23 ...................................................... 2,727,000(h) MXN 20,209,723 10.00%, 12/05/24 ..................................................... 15,000(h) MXN 130,748 M 20, 7.50%, 6/03/27 ................................................. 3,058,000(h) MXN 21,119,080 senior bond, 5.95%, 3/19/19 .......................................... 13,260,000 13,545,090 -------------- 55,004,641 -------------- NEW ZEALAND 1.1% Government of New Zealand, 6.00%, 11/15/11 ............................... 18,273,000 NZD 12,382,608 -------------- PERU 3.5% Government of Peru, 9.91%, 5/05/15 ........................................................ 6,500,000 PEN 2,719,498 7.84%, 8/12/20 ........................................................ 32,200,000 PEN 12,486,640 Series 7, 8.60%, 8/12/17 ............................................. 61,545,000 PEN 24,639,409 -------------- 39,845,547 -------------- PHILIPPINES 0.1% (g) Government of the Philippines, Reg S, 9.125%, 2/22/10 ..................... 770,000 EUR 1,138,088 -------------- POLAND 3.1% Government of Poland, 4.75%, 4/25/12 ........................................................ 10,400,000 PLN 3,195,064 5.75%, 4/25/14 ........................................................ 22,855,000 PLN 7,160,906 6.25%, 10/24/15 ...................................................... 19,335,000 PLN 6,178,358 5.75%, 9/23/22 ........................................................ 60,500,000 PLN 18,011,950 -------------- 34,546,278 -------------- QATAR 1.0% (d) Government of Qatar, senior note, 144A, 6.55%, 4/09/19 .................... 10,450,000 10,894,125 --------------
4 | Quarterly Statement of Investments Templeton Global Income Fund STATEMENT OF INVESTMENTS, MAY 31, 2009 (UNAUDITED) (CONTINUED)
PRINCIPAL AMOUNT(a) VALUE ------------------- -------------- BONDS (CONTINUED) RUSSIA 6.3% Government of Russia, (d) 144A, 7.50%, 3/31/30 ................................................. 64,735,680 $ 65,166,172 (g) senior bond, Reg S, 7.50%, 3/31/30 ................................... 6,408,000 6,450,613 -------------- 71,616,785 -------------- SOUTH AFRICA 2.6% Government of South Africa, 5.25%, 5/16/13 ....................................................... 3,330,000 EUR 4,673,471 4.50%, 4/05/16 ....................................................... 1,829,000 EUR 2,282,407 6.875%, 5/27/19 ...................................................... 18,620,000 18,876,025 senior note, 6.50%, 6/02/14 .......................................... 775,000 805,124 senior note, 5.875%, 5/30/22 ......................................... 3,355,000 3,078,213 -------------- 29,715,240 -------------- SOUTH KOREA 15.2% The Export-Import Bank of Korea, 5.125%, 3/16/15 ...................................................... 300,000 283,140 4.625%, 2/20/17 ...................................................... 205,000 EUR 250,606 (g) Reg S, 5.25%, 2/10/14 ................................................ 295,000 284,424 senior note, 8.125%, 1/21/14 ......................................... 995,000 1,095,764 Government of Korea, senior bond, 5.625%, 11/03/25 ....................... 620,000 546,003 Korea Deposit Insurance Corp., 07-1, 5.57%, 9/14/12 ................................................. 7,200,000,000 KRW 5,919,908 08-1, 5.28%, 2/15/13 ................................................. 1,232,000,000 KRW 1,002,291 Korea Development Bank, 5.30%, 1/17/13 ....................................................... 800,000 795,662 senior note, 8.00%, 1/23/14 .......................................... 2,585,000 2,803,311 Korea Treasury Bond, 0475-1112, 4.75%, 12/10/11 ........................................... 69,639,880,000 KRW 56,506,370 0475-1203, 4.75%, 3/10/12 ............................................ 15,946,000,000 KRW 12,902,366 0525-1509, 5.25%, 9/10/15 ............................................ 4,000,000,000 KRW 3,241,454 0525-2703, 5.25%, 3/10/27 ............................................ 10,693,550,000 KRW 8,230,106 (i) 0550-1106, 5.50%, 6/10/11 .......................................... 7,236,620,000 KRW 5,971,904 0550-1709, 5.50%, 9/10/17 ............................................ 49,577,560,000 KRW 40,181,948 0575-1809, 5.75%, 9/10/18 ............................................ 17,343,000,000 KRW 14,343,526 senior note, 7.125%, 4/16/19 ......................................... 15,880,000 17,006,384 -------------- 171,365,167 -------------- (j) SUPRANATIONAL 8.3% (i) Corporacion Andina De Fomento, 8.125%, 6/04/19 ........................... 8,640,000 8,624,880 European Bank for Reconstruction & Development, senior note, 5.10%, 6/12/09 ....................................................... 125,000,000 PLN 39,254,327 European Investment Bank, senior note, 4.50%, 5/15/13 .................... 113,650,000 NOK 18,800,747 Inter-American Development Bank, 1.90%, 7/08/09 ....................................................... 640,000,000 JPY 6,727,677 7.50%, 4/15/15 ....................................................... 8,000,000 NZD 5,583,982 6.00%, 12/15/17 ...................................................... 6,000,000 NZD 3,726,618 senior note, 7.50%, 12/05/24 ......................................... 185,000,000 MXN 11,222,071 -------------- 93,940,302 -------------- SWEDEN 4.6% Government of Sweden, 5.25%, 3/15/11 ..................................... 366,355,000 SEK 51,870,673 --------------
Quarterly Statement of Investments | 5 Templeton Global Income Fund STATEMENT OF INVESTMENTS, MAY 31, 2009 (UNAUDITED) (CONTINUED)
PRINCIPAL AMOUNT(a) VALUE ------------------- -------------- BONDS (CONTINUED) UNITED ARAB EMIRATES 0.9% (d) Emirate of Abu Dhabi, 144A, 6.75%, 4/08/19 ............................... 10,260,000 $ 10,697,804 -------------- VENEZUELA 1.9% Government of Venezuela, 10.75%, 9/19/13 ...................................................... 3,880,000 3,084,600 (g) senior bond, Reg S, 5.375%, 8/07/10 .................................. 19,905,000 17,979,191 -------------- 21,063,791 -------------- TOTAL BONDS (COST $949,859,182) .......................................... 996,481,022 -------------- MUNICIPAL BONDS 5.5% UNITED STATES AND U.S. TERRITORIES 5.5% Alabama Public Housing Authorities Capital Program Revenue, Series B, FSA Insured, 4.45%, 1/01/24 .............................................. 65,000 65,144 Bay Area Toll Authority Toll Bridge Revenue, San Francisco Bay Area, Refunding, Series F1, 5.00%, 4/01/39 .................................................... 605,000 591,200 5.50%, 4/01/43 .................................................... 295,000 301,596 Bexar County Hospital District GO, Certificates of Obligation, 5.00%, 2/15/32 ....................................................... 805,000 786,775 Bexar County Revenue, Venue Project, Refunding, Series A, BHAC Insured, 5.25%, 8/15/47 ....................................................... 730,000 722,802 California State GO, 6.00%, 4/01/38 ....................................................... 20,130,000 20,745,777 Refunding, 5.125%, 4/01/33 ........................................... 500,000 459,640 Refunding, 5.00%, 4/01/38 ............................................ 205,000 180,773 Chicago Board of Education GO, Refunding, Series C, Assured Guaranty, 5.25%, 12/01/26 ...................................................... 1,810,000 1,932,700 Chicago GO, Project and Refunding, Series A, FSA Insured, 5.00%, 1/01/25 ....................................................... 475,000 489,739 District of Columbia University Revenue, Georgetown University, Refunding, Series D, BHAC Insured, 5.50%, 4/01/36 ............................... 1,545,000 1,601,918 Energy Northwest Electric Revenue, Columbia Generating Station, Refunding, Series A, 5.00%, 7/01/24 ............................................. 1,545,000 1,614,170 Florida State Hurricane Catastrophe Fund Finance Corp. Revenue, Series A, 4.25%, 7/01/14 ....................................................... 2,375,000 2,350,371 Hamilton County Sales Tax Revenue, sub. bond, Refunding, Series A, FSA Insured, 5.00%, 12/01/32 ............................................. 1,825,000 1,827,245 Illinois Municipal Electricity Agency Power Supply Revenue, Series A, BHAC Insured, 5.00%, 2/01/35 .............................................. 1,085,000 1,090,414 Kentucky State Municipal Power Agency Power System Revenue, Prairie State Project, Series A, BHAC Insured, 5.25%, 9/01/42 ...................... 2,395,000 2,449,486 Las Vegas Valley Water District GO, Refunding, Series A, MBIA Insured, 5.00%, 6/01/26 ....................................................... 395,000 400,716 Lewisville ISD, GO, School Building, 5.00%, 8/15/26 ...................... 545,000 578,071 Los Angeles USD, GO, Series I, 5.00%, 7/01/26 .............................................................. 180,000 183,998 7/01/27 .............................................................. 195,000 197,923 Matanuska-Susitna Borough Lease Revenue, Goose Greek Correctional Center, Assured Guaranty, 5.50%, 9/01/23 .................................................... 1,605,000 1,794,165 6.00%, 9/01/28 .................................................... 2,005,000 2,214,843
6 | Quarterly Statement of Investments Templeton Global Income Fund STATEMENT OF INVESTMENTS, MAY 31, 2009 (UNAUDITED) (CONTINUED)
PRINCIPAL AMOUNT(a) VALUE ------------------- -------------- MUNICIPAL BONDS (CONTINUED) UNITED STATES AND U.S. TERRITORIES (CONTINUED) Metropolitan Atlanta Rapid Transit Authority Sales Tax Revenue, Refunding, Third Indenture Series A, FGIC Insured, 5.00%, 7/01/19 ............... 150,000 $ 171,155 Metropolitan Water District of Southern California Waterworks Revenue, Series A, 5.00%, 7/01/37 ............................................. 775,000 788,880 Minneapolis Health Care System Revenue, Fairview Health Services, Series B, Assured Guaranty, 6.50%, 11/15/38 .......................... 1,670,000 1,817,411 MTA Revenue, Series B, Assured Guaranty, 5.25%, 11/15/20 ....................... 430,000 471,929 Transportation, Series A, FSA Insured, 5.50%, 11/15/21 ............ 410,000 459,987 New Jersey State Transportation Trust Fund Authority Revenue, Transportation System, Series A, Assured Guaranty, 5.50%, 12/15/38 ... 2,810,000 2,945,864 New York City GO, Series L, Sub Series L-1, 5.00%, 4/01/26 ............... 100,000 101,491 North Carolina Eastern Municipal Power Agency Power System Revenue, Refunding, Series A, Assured Guaranty, 5.25%, 1/01/19 ................ 250,000 261,943 Palomar Pomerado Health GO, Election of 2004, Series A, MBIA Insured, 5.125%, 8/01/37 ...................................................... 2,080,000 1,960,296 Philadelphia GO, Series B, Assured Guaranty, 7.125%, 7/15/38 ............. 885,000 951,437 Placentia-Yorba Linda USD, GO, 2008 Election, Series A, 5.25%, 8/01/32 ... 2,400,000 2,438,208 Poway USD, GO, Election of 2008, ID 07-1-A, zero cpn., 8/01/27 ........................................................... 705,000 241,364 8/01/30 ........................................................... 705,000 192,084 8/01/32 ........................................................... 885,000 206,178 8/01/33 ........................................................... 470,000 101,623 Puerto Rico Commonwealth GO, Public Improvement, Refunding, Series A, MBIA Insured, 5.50%, 7/01/21 ......................................... 100,000 99,820 Regional Transportation District Sales Tax Revenue, Fastracks Project, Series A, AMBAC Insured, 5.00%, 11/01/27 ............................. 590,000 614,810 San Bernardino Community College District GO, Election of 2002, Series A, 6.375%, 8/01/26 ................................................... 400,000 456,740 6.50%, 8/01/27 .................................................... 580,000 663,450 6.50%, 8/01/28 .................................................... 240,000 272,796 6.25%, 8/01/33 .................................................... 600,000 652,698 San Mateo County Community College District GO, Election of 2001, Series C, MBIA Insured, zero cpn., 9/01/30 ........................................................... 1,705,000 508,158 3/01/31 ........................................................... 465,000 132,999 Seattle Water System Revenue, BHAC Insured, 5.00%, 9/01/34 ............... 935,000 943,509 Tarrant County Cultural Education Facilities Finance Corp. Revenue, Christus Health, Refunding, Series A, Assured Guaranty, 6.25%, 7/01/28 .................................................... 1,400,000 1,470,910 Wisconsin State GO, Series A, FGIC Insured, 5.00%, 5/01/21 ............... 50,000 54,280 -------------- TOTAL MUNICIPAL BONDS (COST $58,403,391) ................................. 61,559,486 -------------- TOTAL INVESTMENTS BEFORE SHORT TERM INVESTMENTS (COST $1,008,262,573) ................................................ 1,058,040,508 --------------
Quarterly Statement of Investments | 7 Templeton Global Income Fund STATEMENT OF INVESTMENTS, MAY 31, 2009 (UNAUDITED) (CONTINUED)
PRINCIPAL AMOUNT(a) VALUE ------------------- -------------- SHORT TERM INVESTMENTS 3.9% FOREIGN GOVERNMENT AND AGENCY SECURITIES (COST $33,297,271) 2.8% EGYPT 2.8% (k) Egypt Treasury Bills, 6/30/09 - 9/22/09 .................................. 181,175,000 EGP $ 31,734,958 -------------- TOTAL INVESTMENTS BEFORE MONEY MARKET FUNDS (COST $1,041,559,844) ........ 1,089,775,466 -------------- SHARES ------------------- MONEY MARKET FUNDS (COST $12,027,110) 1.1% UNITED STATES 1.1% (l) Institutional Fiduciary Trust Money Market Portfolio, 0.02% .............. 12,027,110 12,027,110 -------------- TOTAL INVESTMENTS (COST $1,053,586,954) 97.6% ............................ 1,101,802,576 NET UNREALIZED APPRECIATION ON FORWARD EXCHANGE CONTRACTS (0.6)% ......... (6,443,282) OTHER ASSETS, LESS LIABILITIES 3.0% ...................................... 33,849,234 -------------- NET ASSETS 100.0% ........................................................ $1,129,208,528 ==============
See Abbreviations on page 17. (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 May 31, 2009, the aggregate value of these securities was $109,128,723, representing 9.66% 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 registration. These securities have been deemed liquid under guidelines approved by the Fund's Board of Trustees. At May 31, 2009, the aggregate value of these securities was $34,638,836, representing 3.07% of net assets. (h) Principal amount is stated in 100 Mexican Peso Units. (i) Security purchased on a delayed delivery basis. See Notes to Statement of Investments. 8 | Quarterly Statement of Investments 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 closed-end investment company. 2. SECURITY VALUATION Securities listed on a securities exchange or on the NASDAQ National Market System are valued at the last quoted sale price or the official closing price of the day, respectively. Over-the-counter securities and listed securities for which there is no reported sale are valued within the range of the most recent quoted bid and ask prices. Securities that trade in multiple markets or on multiple exchanges are valued according to the broadest and most representative market. Investments in open-end mutual funds are valued at the closing net asset value. Corporate debt securities, government securities and municipal 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. 3. DERIVATIVE FINANCIAL INSTRUMENTS The Fund may invest in derivative financial instruments (derivatives) in order to manage risk or gain exposure to various other investments or markets. Derivatives are financial contracts based on an underlying or notional amount, require no initial investment or an initial net investment that is smaller than would normally be required to have a similar response to changes in market Quarterly Statement of Investments | 9 Templeton Global Income Fund NOTES TO STATEMENT OF INVESTMENTS (UNAUDITED) (CONTINUED) 3. DERIVATIVE FINANCIAL INSTRUMENTS (CONTINUED) factors, and require or permit net settlement. Derivatives may contain various risks including the potential inability of the counterparty to fulfill their obligations under the terms of the contract, the potential for an illiquid secondary market, and the potential for market movements. Derivatives are marked to market daily based upon quotations from market makers or the Fund's independent pricing services and the Fund's net benefit or obligation under the contract, as measured by the fair market value of the contract, is included in net assets. The Fund enters into foreign exchange contracts in order to manage foreign exchange rate risk between the trade date and settlement date of securities transactions. A foreign exchange contract is an agreement between the Fund and a counterparty to buy or sell a foreign currency for a specific exchange rate on a future date. The Fund enters into forward exchange contracts in order to hedge against fluctuations in foreign exchange rates or to gain exposure to certain foreign currencies. A forward exchange contract is an agreement between the Fund and a counterparty to buy or sell a foreign currency for a specific exchange rate on a future date. The Fund enters into interest rate swap contracts in order to manage interest rate risk. An interest rate swap is an agreement between the Fund and a counterparty to exchange cash flows based on the difference between two interest rates, applied to a notional principal amount. Over the term of the contract, contractually required payments to be paid and to be received are accrued daily and recorded as unrealized depreciation and appreciation until the payments are made, at which time they are realized. Pursuant to the terms of the interest rate swap contract, cash or securities may be required to be deposited as collateral. 4. INCOME TAXES At May 31, 2009, the cost of investments and net unrealized appreciation (depreciation) for income tax purposes were as follows: Cost of investments ........................................... $1,058,059,720 -------------- Unrealized appreciation ....................................... $ 106,057,071 Unrealized depreciation ....................................... (62,314,215) -------------- Net unrealized appreciation (depreciation) .................... $ 43,742,856 ==============
10 | Quarterly Statement of Investments Templeton Global Income Fund NOTES TO STATEMENT OF INVESTMENTS (UNAUDITED) (CONTINUED) 5. FORWARD EXCHANGE CONTRACTS At May 31, 2009, the Fund had the following forward exchange contracts outstanding:
CONTRACT SETTLEMENT UNREALIZED UNREALIZED AMOUNT(a) DATE APPRECIATION DEPRECIATION ---------- ---------- ------------ ------------ CONTRACTS TO BUY 21,404,532 Swiss Franc.................... 13,885,522 EUR 6/11/09 $ 417,537 $ -- 191,669,460 Malaysian Ringgit.............. 38,716,472 EUR 6/16/09 177,413 -- 205,190,790 Russian Ruble.................. 92,527,712 MXN 6/16/09 -- (381,820) 183,084,303 Malaysian Ringgit.............. 37,054,099 EUR 6/17/09 66,130 -- 58,966,389,000 Vietnamese Dong............... 4,137,940 AUD 6/22/09 -- (3,675) 9,423,957 Malaysian Ringgit.............. 1,891,981 EUR 7/14/09 22,837 -- 23,285,042 Malaysian Ringgit.............. 4,654,272 EUR 7/15/09 85,221 -- 6,055,551 Malaysian Ringgit.............. 1,210,868 EUR 7/16/09 21,451 -- 6,152,870 Malaysian Ringgit.............. 1,229,787 EUR 7/17/09 22,513 -- 4,283,433 Malaysian Ringgit.............. 851,391 EUR 7/24/09 22,147 -- 1,687,374 Malaysian Ringgit.............. 336,331 EUR 7/31/09 7,313 -- 3,370,207 Malaysian Ringgit.............. 680,053 EUR 8/05/09 2,795 -- 151,667,902 Russian Ruble.................. 9,038,612 NZD 8/12/09 -- (935,826) 73,838,479 Russian Ruble.................. 4,411,955 NZD 8/14/09 -- (463,867) 647,291,600 Japanese Yen................... 4,154,187 EUR 8/21/09 932,448 -- 321,024,200 Japanese Yen................... 2,058,375 EUR 8/26/09 465,420 -- 223,340,000 Japanese Yen................... 1,472,617 EUR 9/04/09 266,862 -- 13,341,000 Chinese Yuan................... 1,389,688 EUR 9/18/09 -- (291) 83,126,800 Chinese Yuan................... 8,685,911 EUR 9/23/09 -- (35,097) 91,000,000 Swedish Krona.................. 9,461,328 EUR 9/23/09 -- (1,342,081) 37,088,000 Chinese Yuan................... 3,821,732 EUR 9/24/09 60,466 -- 441,513,514 Russian Ruble.................. 21,004,870 AUD 9/24/09 -- (2,789,847) 225,000,000 Indian Rupee................... 7,364,975 NZD 9/25/09 35,029 -- 1,342,000,000 Japanese Yen................... 8,982,338 EUR 9/28/09 1,421,228 -- 243,166,459 Russian Ruble.................. 11,688,183 AUD 9/28/09 -- (1,637,648) 42,313,777,933 Vietnamese Dong............... 3,436,066 AUD 10/07/09 -- (396,376) 13,969,953 Chinese Yuan................... 3,018,377 AUD 10/13/09 -- (336,029) 779,666,250 Kazakhstn Tenge............... 6,032,234 10/13/09 -- (950,468) 32,663,916 Chinese Yuan................... 3,466,035 EUR 10/15/09 -- (80,528) 32,823,215 Chinese Yuan................... 3,510,373 EUR 10/16/09 -- (119,300) 23,662,387 Chinese Yuan................... 5,024,598 AUD 10/19/09 -- (496,331) 43,995,179 Chinese Yuan................... 4,724,375 EUR 10/19/09 -- (185,509) 27,185,000 Chinese Yuan................... 3,927,049 10/21/09 82,226 -- 219,208,545 Chilean Peso................... 332,134 10/26/09 58,809 -- 142,244,757 Chilean Peso................... 207,584 10/28/09 46,093 -- 3,571,898 Swiss Franc.................... 2,453,058 EUR 10/28/09 -- (112,138) 7,181,000,000 Indonesian Rupiah.............. 508,569 11/17/09 162,197 -- 35,001,000,000 Indonesian Rupiah.............. 2,540,907 11/18/09 727,745 -- 28,391,000 Russian Ruble.................. 635,216 EUR 11/20/09 -- (17,278) 38,962,000,000 Indonesian Rupiah.............. 2,540,890 11/23/09 1,093,569 -- 150,288,486 Swedish Krona.................. 14,654,428 EUR 11/30/09 -- (837,860) 31,071,000 Chinese Yuan................... 3,373,564 EUR 12/04/09 -- (167,602) 24,661,000 Chinese Yuan................... 3,373,598 12/04/09 274,317 -- 20,258,000,000 Indonesian Rupiah.............. 1,447,000 12/07/09 436,998 -- 49,119,762 Chinese Yuan................... 6,954,190 12/14/09 316,146 --
Quarterly Statement of Investments | 11 Templeton Global Income Fund NOTES TO STATEMENT OF INVESTMENTS (UNAUDITED) (CONTINUED) 5. FORWARD EXCHANGE CONTRACTS (CONTINUED)
CONTRACT SETTLEMENT UNREALIZED UNREALIZED AMOUNT(a) DATE APPRECIATION DEPRECIATION -------------- ---------- ------------ ------------ CONTRACTS TO BUY (CONTINUED) 65,695,397 Chinese Yuan .................. 9,302,464 12/15/09 $ 421,864 $ -- 32,996,252 Chinese Yuan .................. 4,688,633 12/16/09 195,818 -- 16,656,368 Malaysian Ringgit ............. 4,688,633 12/16/09 57,537 -- 10,145,784 Chinese Yuan .................. 1,435,047 12/17/09 66,929 -- 5,137,469 Malaysian Ringgit ............. 1,435,047 12/17/09 28,837 -- 30,514,414 Chinese Yuan .................. 4,305,142 12/18/09 212,470 -- 8,294,486 Chinese Yuan .................. 1,183,236 12/21/09 44,974 -- 9,301,365 Malaysian Ringgit ............. 2,609,484 12/21/09 40,738 -- 9,755,745 Chinese Yuan .................. 1,401,688 12/22/09 42,987 -- 5,021,942 Malaysian Ringgit ............. 1,435,579 12/22/09 -- (4,704) 3,991,727 Malaysian Ringgit ............. 1,148,038 12/23/09 -- (10,711) 4,516,266 Malaysian Ringgit ............. 1,291,543 12/28/09 -- (4,845) 1,968,980,000 Chilean Peso .................. 3,117,448 1/28/10 396,635 -- 48,000,000 Malaysian Ringgit ............. 13,111,172 1/28/10 558,806 -- 5,128,790,000 Chilean Peso .................. 8,173,807 1/29/10 979,823 -- 89,650,000 Swedish Krona ................. 8,549,902 EUR 1/29/10 -- (227,133) 950,440,000 Chilean Peso .................. 1,520,704 2/02/10 175,719 -- 1,783,500,000 Chilean Peso .................. 2,851,319 2/03/10 332,074 -- 135,288,000 Chinese Yuan .................. 19,180,966 2/03/10 905,676 -- 173,615,100 Mexican Peso .................. 11,571,817 2/03/10 1,161,593 -- 262,700,000 Mexican Peso .................. 17,357,756 2/04/10 1,906,710 -- 935,230,000 Chilean Peso .................. 1,520,699 2/12/10 148,873 -- 24,260,103 Malaysian Ringgit ............. 6,683,224 2/12/10 224,528 -- 7,084,000,000 South Korean Won .............. 5,208,824 2/12/10 466,650 -- 2,301,970,000 Chilean Peso .................. 3,801,767 2/16/10 308,001 -- 2,298,030,000 Chilean Peso .................. 3,823,677 2/17/10 279,130 -- 6,108,000 Malaysian Ringgit ............. 1,675,031 2/17/10 64,034 -- 5,097,330,000 Chilean Peso .................. 8,412,060 2/26/10 688,879 -- 1,153,220,000 Chilean Peso .................. 1,911,837 3/03/10 146,936 -- 1,873,290,000 Chilean Peso .................. 3,058,932 3/04/10 285,264 -- 1,173,870,000 Chilean Peso .................. 1,911,840 3/05/10 183,706 -- 1,107,150,000 Chilean Peso .................. 1,799,571 3/08/10 176,740 -- 1,176,260,000 Chilean Peso .................. 1,911,841 3/09/10 187,789 -- 395,410,000 Mexican Peso .................. 24,590,174 3/16/10 4,241,355 -- 110,524,000 Indian Rupee .................. 2,135,977 4/09/10 156,220 -- 237,003,000 Indian Rupee .................. 4,577,115 4/12/10 337,377 -- 159,192,000 Indian Rupee .................. 3,051,409 4/13/10 249,416 -- 156,262,000 Indian Rupee .................. 3,051,396 4/15/10 188,325 -- 132,847,000 Indian Rupee .................. 2,597,961 4/19/10 155,710 -- 5,072,841 Malaysian Ringgit ............. 1,401,221 4/19/10 42,627 -- 14,535,000 Malaysian Ringgit ............. 4,047,957 4/20/10 89,022 -- 110,998,000 Indian Rupee .................. 2,141,934 4/26/10 157,976 -- 15,835,000 Indian Rupee .................. 305,990 4/27/10 22,098 -- 586,073,181 Indian Rupee .................. 11,442,259 4/28/10 700,029 -- 29,978,900 Swedish Krona ................. 2,820,747 EUR 4/29/10 -- (22,316) 78,640,000 Indian Rupee .................. 1,529,961 4/30/10 99,129 -- 2,278,980,000 Chilean Peso .................. 3,974,919 5/18/10 86,878 --
12 | Quarterly Statement of Investments Templeton Global Income Fund NOTES TO STATEMENT OF INVESTMENTS (UNAUDITED) (CONTINUED) 5. FORWARD EXCHANGE CONTRACTS (CONTINUED)
CONTRACT SETTLEMENT UNREALIZED UNREALIZED AMOUNT(a) DATE APPRECIATION DEPRECIATION -------------- ---------- ------------ ------------ CONTRACTS TO BUY (CONTINUED) 465,463,000 Chilean Peso .................. 833,930 5/26/10 $ -- $ (4,486) 932,990,000 Chilean Peso .................. 1,651,017 5/28/10 11,477 -- 186,070,000 Chilean Peso .................. 330,204 6/01/10 1,325 -- 150,389,000 Indian Rupee .................. 3,064,223 6/01/10 45,822 -- 4,458,000 Indian Rupee .................. 91,918 6/02/10 920 -- CONTRACTS TO SELL 2,470,410 Euro .......................... 294,077,606 JPY 6/10/09 -- (404,912) 92,945,816 Mexican Peso .................. 206,423,363 RUB 6/10/09 -- (371,356) 29,507,162 Mexican Peso .................. 1,334,726,977 CLP 6/12/09 138,588 -- 194,757,301 Mexican Peso .................. 432,760,932 RUB 6/16/09 -- (775,734) 106,279,890 Mexican Peso .................. 237,713,212 RUB 6/19/09 -- (374,448) 61,955,606 Mexican Peso .................. 136,619,484 RUB 7/10/09 -- (289,397) 4,919,150 Euro .......................... 7,604,637 7/13/09 651,279 -- 30,888,068 Mexican Peso .................. 68,008,329 RUB 7/13/09 -- (148,313) 3,027,169 Euro .......................... 4,689,236 7/14/09 410,283 -- 4,919,150 Euro .......................... 7,691,583 7/15/09 738,342 -- 2,459,575 Euro .......................... 3,861,041 7/17/09 384,479 -- 4,351,556 Euro .......................... 6,807,139 7/24/09 656,660 -- 14,610,919 Mexican Peso .................. 32,786,902 RUB 7/24/09 -- (51,619) 39,424,000 Mexican Peso .................. 2,800,219 7/31/09 -- (168,177) 24,883,740 New Zealand Dollar ............ 13,821,567 7/31/09 -- (2,066,677) 24,581,877 New Zealand Dollar ............ 13,821,567 8/03/09 -- (1,871,112) 18,936,000 Brazilian Real ................ 8,396,967 8/04/09 -- (1,067,806) 28,027,764 New Zealand Dollar ............ 15,780,907 8/04/09 -- (2,110,498) 5,204,459 New Zealand Dollar ............ 2,939,010 8/05/09 -- (383,035) 8,457,907 New Zealand Dollar ............ 56,133,438,372 IDR 8/05/09 -- (29,351) 10,299,580 New Zealand Dollar ............ 5,878,020 8/06/09 -- (695,883) 20,291,294 New Zealand Dollar ............ 11,685,234 8/07/09 -- (1,265,296) 3,357,710 New Zealand Dollar ............ 1,947,539 8/10/09 -- (195,070) 3,356,061 New Zealand Dollar ............ 1,947,539 8/11/09 -- (193,889) 6,303,485 New Zealand Dollar ............ 3,714,959 8/12/09 -- (306,914) 4,168,252 New Zealand Dollar ............ 50,512,959,923 VND 8/14/09 145,480 -- 6,159,450 New Zealand Dollar ............ 3,715,134 8/24/09 -- (212,012) 6,130,000 New Zealand Dollar ............ 3,706,995 8/26/09 -- (200,906) 6,050,000 Euro .......................... 732,322,250 JPY 11/18/09 -- (838,464) 257,757 Euro .......................... 326,269 11/19/09 -- (37,728) 2,796,556 Euro .......................... 3,520,585 11/20/09 -- (428,598) 1,870,413 Euro .......................... 2,330,628 11/24/09 -- (310,620) 655,522 Euro .......................... 820,386 11/25/09 -- (105,283) 1,274,797 Euro .......................... 1,663,610 11/30/09 -- (136,513) 27,348,819 New Zealand Dollar ............ 16,806,634 11/30/09 -- (532,289) 39,049,000 Mexican Peso .................. 2,882,377 12/01/09 -- (7,281) 23,805,178 New Zealand Dollar ............ 14,667,739 12/02/09 -- (422,848) 1,325,806 Euro .......................... 1,676,415 12/08/09 -- (195,687) 70,391,000 Singapore Dollar .............. 46,888,153 1/29/10 -- (1,840,986) 10,258,681 New Zealand Dollar ............ 5,186,174 2/02/10 -- (1,294,416)
Quarterly Statement of Investments | 13 Templeton Global Income Fund NOTES TO STATEMENT OF INVESTMENTS (UNAUDITED) (CONTINUED) 5. FORWARD EXCHANGE CONTRACTS (CONTINUED)
CONTRACT SETTLEMENT UNREALIZED UNREALIZED AMOUNT(a) DATE APPRECIATION DEPRECIATION -------------- ---------- ------------ ------------ CONTRACTS TO SELL (CONTINUED) 16,454,000 Singapore Dollar .............. 10,949,156 2/02/10 $ -- $ (441,334) 14,723,000 Singapore Dollar .............. 9,776,293 2/03/10 -- (415,886) 14,805,000 Singapore Dollar .............. 9,776,407 2/04/10 -- (472,534) 11,809,000 Singapore Dollar .............. 7,821,307 2/05/10 -- (353,614) 9,302,000 Singapore Dollar .............. 6,178,678 2/08/10 -- (260,735) 11,787,000 Singapore Dollar .............. 7,827,733 2/09/10 -- (331,946) 4,670,600 Singapore Dollar .............. 3,131,205 2/11/10 -- (102,065) 1,456,071 New Zealand Dollar ............ 756,283 2/12/10 -- (163,027) 1,943,304 New Zealand Dollar ............ 972,041 2/22/10 -- (254,204) 26,988,728 New Zealand Dollar ............ 13,534,847 2/26/10 -- (3,491,354) 15,310,000 Singapore Dollar .............. 9,954,583 3/17/10 -- (643,425) 9,714,000 Singapore Dollar .............. 6,316,405 3/18/10 -- (407,883) 14,546,000 Singapore Dollar .............. 9,475,193 3/19/10 -- (593,914) 19,370,000 Singapore Dollar .............. 12,633,089 3/22/10 -- (775,235) 17,593,000 Singapore Dollar .............. 11,583,106 3/23/10 -- (595,118) 4,102,790 Australian Dollar ............. 2,790,513 3/24/10 -- (432,480) 4,766,000 Singapore Dollar .............. 3,158,592 3/31/10 -- (140,477) 16,563,648 New Zealand Dollar ............ 9,065,285 4/28/10 -- (1,346,669) Unrealized appreciation (depreciation) on offsetting forward exchange contracts ..................................... 8,050,055 -- ------------ ------------ Unrealized appreciation (depreciation) on forward exchange contracts ................................................ $ 35,675,502 $(42,118,784) ------------ ------------ NET UNREALIZED APPRECIATION (DEPRECIATION) ON FORWARD EXCHANGE CONTRACTS .......................................... $ (6,443,282) ============
See Abbreviations on page 17. (a) In U.S. Dollar unless otherwise indicated. 6. INTEREST RATE SWAPS At May 31, 2009, the Fund had the following interest rate swap contracts outstanding:
COUNTER- RECEIVE -- PAY -- NOTIONAL EXPIRATION UNREALIZED UNREALIZED PARTY FIXED RATE FLOATING RATE PRINCIPAL AMOUNT(a) DATE APPRECIATION DEPRECIATION - ------------- ---------- ------------------------- ------------------- ---------- ------------ ------------ JPMorgan 7.16% NZD Bank Bill Rate 5,740,000 NZD 7/31/13 $ 406,939 $ -- JPMorgan 7.12% NZD Bank Bill Rate 5,750,000 NZD 8/01/13 400,478 -- JPMorgan 7.055% NZD Bank Bill Rate 5,750,000 NZD 8/04/13 390,435 -- JPMorgan 7.035% NZD Bank Bill Rate 11,500,000 NZD 8/05/13 774,922 -- JPMorgan 7.05% NZD Bank Bill Rate 2,875,000 NZD 8/06/13 193,595 -- JPMorgan 7.05% NZD Bank Bill Rate 2,875,000 NZD 8/07/13 193,504 -- JPMorgan 7.00% NZD Bank Bill Rate 3,045,600 NZD 8/14/13 200,123 -- JPMorgan 5.23% NZD Bank Bill Rate 7,000,000 NZD 12/05/13 139,616 -- Merrill Lynch 7.053% Tasa Nominal Annual Rate 7,900,000,000 CLP 6/13/18 2,263,592 -- JPMorgan 7.06% Tasa Nominal Annual Rate 2,646,000,000 CLP 6/13/18 760,624 -- Merrill Lynch 7.094% Tasa Nominal Annual Rate 8,650,000,000 CLP 6/16/18 2,507,890 -- JPMorgan 7.15% Tasa Nominal Annual Rate 2,700,000,000 CLP 6/18/18 803,759 -- JPMorgan 7.85% Tasa Nominal Annual Rate 702,800,000 CLP 7/11/18 298,131 -- JPMorgan 7.855% Tasa Nominal Annual Rate 705,600,000 CLP 7/17/18 298,721 -- Merrill Lynch 7.40% Tasa Nominal Annual Rate 580,000,000 CLP 7/30/18 208,649 --
14 | Quarterly Statement of Investments Templeton Global Income Fund NOTES TO STATEMENT OF INVESTMENTS (UNAUDITED) (CONTINUED) 6. INTEREST RATE SWAPS (CONTINUED)
COUNTER- RECEIVE -- PAY -- NOTIONAL EXPIRATION UNREALIZED UNREALIZED PARTY FIXED RATE FLOATING RATE PRINCIPAL AMOUNT(a) DATE APPRECIATION DEPRECIATION - ------------- ---------- ------------------------- ------------------- ---------- ------------ ------------ Merrill Lynch 7.40% Tasa Nominal Annual Rate 580,000,000 CLP 8/06/18 $ 209,214 $ -- JPMorgan 7.50% Tasa Nominal Annual Rate 1,210,680,000 CLP 8/07/18 455,553 -- Merrill Lynch 7.51% Tasa Nominal Annual Rate 580,000,000 CLP 8/07/18 219,059 -- JPMorgan 7.50% Tasa Nominal Annual Rate 1,208,320,000 CLP 8/13/18 452,908 -- Merrill Lynch 9.03% MXN Interbank Equilibrium Interest Rate 723,000,000 MXN 8/17/18 3,780,369 -- JPMorgan 7.67% Tasa Nominal Annual Rate 415,200,000 CLP 8/29/18 164,180 -- JPMorgan 8.6748% MXN Interbank Equilibrium Interest Rate 37,800,000 MXN 11/29/18 119,227 -- JPMorgan 5.59% NZD Bank Bill Rate 8,500,000 NZD 12/05/18 -- (79) Citigroup 7.6973% MXN Interbank Equilibrium Interest Rate 51,400,000 MXN 1/11/19 -- (103,487) Citigroup 7.666% MXN Interbank Equilibrium Interest Rate 67,000,000 MXN 1/12/19 -- (145,646) Citigroup 7.835% MXN Interbank Equilibrium Interest Rate 44,700,000 MXN 1/15/19 -- (57,543) Citigroup 7.869% MXN Interbank Equilibrium Interest Rate 58,100,000 MXN 1/16/19 -- (64,677) Citigroup 8.00% MXN Interbank Equilibrium Interest Rate 35,060,000 MXN 1/18/19 -- (15,354) JPMorgan 8.06% MXN Interbank Equilibrium Interest Rate 55,780,000 MXN 1/22/19 -- (7,994) Citigroup 8.07% MXN Interbank Equilibrium Interest Rate 175,300,000 MXN 1/22/19 -- (15,904) Merrill Lynch 9.10% MXN Interbank Equilibrium Interest Rate 240,000,000 MXN 8/04/28 836,402 -- JPMorgan 8.3167% MXN Interbank Equilibrium Interest Rate 83,670,000 MXN 1/09/29 -- (206,610) ------------ ------------ Unrealized appreciation (depreciation) on interest rate swap contracts .............. $ 16,077,890 $ (617,294) ------------ ------------ NET UNREALIZED APPRECIATION (DEPRECIATION) ON INTEREST RATE SWAP CONTRACTS ....... $ 15,460,596 ============
See Abbreviations on page 17. (a) In U.S. Dollar unless otherwise indicated. 7. FAIR VALUE MEASUREMENTS The Fund adopted Financial Accounting Standards Board (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 | 15 Templeton Global Income Fund NOTES TO STATEMENT OF INVESTMENTS (UNAUDITED) (CONTINUED) 7. 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 May 31, 2009, in valuing the Fund's assets and liabilities carried at fair value:
LEVEL 1 LEVEL 2 LEVEL 3 TOTAL ----------- -------------- ------- -------------- ASSETS: Investments in Securities ........ $12,027,110 $1,089,775,466 $-- $1,101,802,576 Other Financial Instruments(a) ... -- 51,753,392 -- 51,753,392 LIABILITIES: Other Financial Instruments(a) ... -- 42,736,078 -- 42,736,078
(a) Other financial instruments include net unrealized appreciation (depreciation) on forward exchange contracts and swaps. 8. NEW ACCOUNTING PRONOUNCEMENTS In April 2009, FASB issued FASB Staff Position FSP FAS 157-4, "Determining Fair Value When the Volume and Level of Activity for the Asset or Liability Have Significantly Decreased and Identifying Transactions That Are Not Orderly" (FSP FAS 157-4), which provides additional guidance when the volume and level of activity for the asset or liability measured at fair value have significantly decreased. Additionally, FSP FAS 157-4 amends SFAS 157, expanding disclosure requirements by reporting entities surrounding the major categories of assets and liabilities carried at fair value. FSP FAS 157-4 is effective for interim and annual periods ending after June 15, 2009. The Fund believes applying FSP FAS 157-4 will not have a material impact on its financial statements. In May 2009, FASB issued Statement No. 165, "Subsequent Events", which is intended to establish general standards of accounting for and disclosure of events that occur after the balance sheet date but before the statements are issued or are available to be issued. FASB 165 is effective for interim or annual financial periods ending after June 15, 2009, the adoption of FASB 165 will not have a material impact on its financial statements. 16 | Quarterly Statement of Investments Templeton Global Income Fund NOTES TO STATEMENT OF INVESTMENTS (UNAUDITED) (CONTINUED) ABBREVIATIONS CURRENCY AUD - Australian Dollar BRL - Brazilian Real EGP - Egyptian Pound EUR - Euro IDR - Indonesian Rupiah INR - Indian Rupee 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 AMBAC - American Municipal Bond Assurance Corp. BHAC - Berkshire Hathaway Assurance Corp. FGIC - Financial Guaranty Insurance Co. FRN - Floating Rate Note FSA - Financial Security Assurance Inc. GO - General Obligation ID - Improvement District ISD - Independent School District MBIA - Municipal Bond Investors Assurance Corp. (effective February 18, 2009, MBIA spun-off and established National Public Financial Guarantee Corp. as a subsidiary under MBIA) MTA - Metropolitan Transit Authority USD - Unified/Union School District 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. Quarterly Statement of Investments | 17 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 Laura F. Fergerson, Chief Executive Officer - Finance and Administration, and Mark H. Otani, 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/LAURA F. FERGERSON ------------------------------ Laura F. Fergerson Chief Executive Officer - Finance and Administration Date July 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/LAURA F. FERGERSON ------------------------------ Laura F. Fergerson Chief Executive Officer - Finance and Administration Date July 27, 2009 By /s/MARK H. OTANI -------------------------------- Mark H. Otani Chief Financial Officer and Chief Accounting Officer Date July 27, 2009 EX-99.CERT 2 gim302cert-509.txt 302 CERTS GIM Exhibit 3 I, Laura F. Fergerson, certify that: 1. I have reviewed this report on Form N-Q of TEMPLETON GLOBAL INCOME FUND; 2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; 3. Based on my knowledge, the schedules of investments included in this report fairly present in all material respects the investments of the registrant as of the end of the fiscal quarter for which the report is filed; 4. The registrant's other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940) and internal control over financial reporting (as defined in Rule 30a-3(d) under the Investment Company Act of 1940) for the registrant and have: (a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; (b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; (c) Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of a date within 90 days prior to the filing date of this report, based on such evaluation; and (d) Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and 5. The registrant's other certifying officer(s) and I have disclosed to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions): (a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize, and report financial information; and (b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting. 7/27/2009 S\ LAURA F. FERGERSON Laura F. Fergerson Chief Executive Officer - Finance and Administration I, Mark H. Otani, certify that: 1. I have reviewed this report on Form N-Q of TEMPLETON GLOBAL INCOME FUND; 2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; 3. Based on my knowledge, the schedules of investments included in this report fairly present in all material respects the investments of the registrant as of the end of the fiscal quarter for which the report is filed; 4. The registrant's other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940) and internal control over financial reporting (as defined in Rule 30a-3(d) under the Investment Company Act of 1940) for the registrant and have: (a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; (b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; (c) Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of a date within 90 days prior to the filing date of this report, based on such evaluation; and (d) Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and 5. The registrant's other certifying officer(s) and I have disclosed to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions): (a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize, and report financial information; and (b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting. 7/27/2009 S\ MARK H. OTANI Mark H. Otani Chief Financial Officer and Chief Accounting Officer -----END PRIVACY-ENHANCED MESSAGE-----