N-Q 1 n-qgimpe33118_revised.htm n-qgimpe33118_revised.htm - Generated by SEC Publisher for SEC Filing

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, DC 20549

 

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)

 

300 S.E. 2nd Street, Fort Lauderdale, FL 33301-1923

 (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:   12/31   

 

Date of reporting period:   3/31/18

 

 

Item 1. Schedule of Investments.

 

 

 

TEMPLETON GLOBAL INCOME FUND

Statement of Investments, March 31, 2018 (unaudited)          
  Principal        
  Amount*       Value
 
Foreign Government and Agency Securities 61.5%          
Argentina 3.6%          
Argentine Bonos del Tesoro,          
21.20%, 9/19/18 17,908,000   ARS $ 878,762
18.20%, 10/03/21. 248,720,000   ARS   12,432,773
16.00%, 10/17/23. 92,986,000   ARS   4,493,135
senior note, 15.50%, 10/17/26 321,352,000   ARS   15,723,435
Government of Argentina,          
3.75%, 2/08/19 8,816,000   ARS   461,317
a FRN, 24.938%, (ARS Badlar + 2.00%), 4/03/22 20,588,000   ARS   1,050,877
          35,040,299
Brazil 13.4%          
Letra Tesouro Nacional,          
Strip, 7/01/20 70,870 b BRL   18,196,925
Strip, 7/01/21 74,890 b BRL   17,521,192
Nota Do Tesouro Nacional,          
10.00%, 1/01/21 73,235 b BRL   23,242,945
10.00%, 1/01/23 6,218 b BRL   1,960,491
10.00%, 1/01/25 75,193 b BRL   23,513,147
c Index Linked, 6.00%, 5/15/19 3,255 b BRL   3,144,447
c Index Linked, 6.00%, 8/15/22 24,329 b BRL   23,981,946
c Index Linked, 6.00%, 5/15/23 12,641 b BRL   12,624,195
c Index Linked, 6.00%, 8/15/24 6,860 b BRL   6,925,051
          131,110,339
Colombia 4.2%          
Government of Colombia,          
senior bond, 7.75%, 4/14/21 983,000,000   COP   371,076
senior bond, 4.375%, 3/21/23 149,000,000   COP   50,204
senior bond, 9.85%, 6/28/27 237,000,000   COP   107,130
Titulos de Tesoreria,          
B, 7.75%, 9/18/30 44,355,700,000   COP   17,374,110
B, 7.00%, 6/30/32 3,107,000,000   COP   1,128,791
senior bond, B, 11.25%, 10/24/18 2,117,000,000   COP   788,040
senior bond, B, 11.00%, 7/24/20 1,144,000,000   COP   461,090
senior bond, B, 7.00%, 5/04/22 3,111,000,000   COP   1,174,595
senior bond, B, 10.00%, 7/24/24 12,183,000,000   COP   5,244,645
senior bond, B, 7.50%, 8/26/26 25,819,300,000   COP   9,927,833
senior bond, B, 6.00%, 4/28/28 13,320,000,000   COP   4,609,770
senior note, B, 7.00%, 9/11/19 1,258,000,000   COP   464,924
          41,702,208
Ghana 1.9%          
Government of Ghana,          
24.75%, 3/01/21 50,000   GHS   13,563
24.50%, 6/21/21 50,000   GHS   13,704
24.75%, 7/19/21 50,000   GHS   13,787
18.75%, 1/24/22 8,520,000   GHS   2,090,171
19.75%, 3/25/24 8,520,000   GHS   2,243,887
19.00%, 11/02/26. 25,560,000   GHS   6,738,924
senior bond, 19.75%, 3/15/32 25,560,000   GHS   7,008,540
senior note, 21.50%, 3/09/20 160,000   GHS   39,325
          18,161,901

 

Quarterly Statement of Investments | See Notes to Statement of Investments. | 1

 

TEMPLETON GLOBAL INCOME FUND
STATEMENT OF INVESTMENTS (UNAUDITED)

  Principal        
  Amount*       Value
 
Foreign Government and Agency Securities (continued)          
India 9.0%          
Government of India,          
senior bond, 7.80%, 5/03/20 231,200,000   INR $ 3,613,487
senior bond, 8.20%, 2/15/22 282,000,000   INR   4,469,991
senior bond, 8.35%, 5/14/22 68,200,000   INR   1,086,969
senior bond, 8.08%, 8/02/22 549,000,000   INR   8,686,029
senior bond, 8.13%, 9/21/22 15,000,000   INR   237,471
senior bond, 9.15%, 11/14/24 387,000,000   INR   6,395,024
senior note, 7.28%, 6/03/19. 9,000,000   INR   139,242
senior note, 8.27%, 6/09/20. 476,000,000   INR   7,514,828
senior note, 8.12%, 12/10/20 252,600,000   INR   3,985,195
senior note, 7.80%, 4/11/21. 697,700,000   INR   10,919,651
senior note, 8.79%, 11/08/21 225,000,000   INR   3,629,371
senior note, 8.15%, 6/11/22. 540,000,000   INR   8,537,830
senior note, 6.84%, 12/19/22 111,000,000   INR   1,673,822
senior note, 7.16%, 5/20/23. 42,900,000   INR   652,285
senior note, 8.83%, 11/25/23 966,400,000   INR   15,778,968
senior note, 7.68%, 12/15/23 730,000,000   INR   11,350,398
          88,670,561
Indonesia 8.7%          
Government of Indonesia,          
senior bond, FR31, 11.00%, 11/15/20 145,557,000,000   IDR   11,869,795
senior bond, FR34, 12.80%, 6/15/21 64,492,000,000   IDR   5,590,637
senior bond, FR35, 12.90%, 6/15/22 42,438,000,000   IDR   3,833,756
senior bond, FR36, 11.50%, 9/15/19 32,651,000,000   IDR   2,574,838
senior bond, FR39, 11.75%, 8/15/23 2,703,000,000   IDR   243,250
senior bond, FR42, 10.25%, 7/15/27 3,595,000,000   IDR   322,218
senior bond, FR43, 10.25%, 7/15/22 4,826,000,000   IDR   402,751
senior bond, FR44, 10.00%, 9/15/24 1,618,000,000   IDR   138,996
senior bond, FR46, 9.50%, 7/15/23 11,430,000,000   IDR   947,657
senior bond, FR47, 10.00%, 2/15/28 1,052,000,000   IDR   93,144
senior bond, FR48, 9.00%, 9/15/18 4,494,000,000   IDR   333,500
senior bond, FR52, 10.50%, 8/15/30 3,390,000,000   IDR   315,911
senior bond, FR53, 8.25%, 7/15/21 144,200,000,000   IDR   11,164,310
senior bond, FR56, 8.375%, 9/15/26 292,968,000,000   IDR   23,731,141
senior bond, FR61, 7.00%, 5/15/22 13,189,000,000   IDR   987,617
senior bond, FR63, 5.625%, 5/15/23 16,137,000,000   IDR   1,159,719
senior bond, FR64, 6.125%, 5/15/28 3,157,000,000   IDR   221,151
senior bond, FR70, 8.375%, 3/15/24 149,967,000,000   IDR   11,929,590
senior bond, FR71, 9.00%, 3/15/29 45,298,000,000   IDR   3,799,239
senior bond, FR73, 8.75%, 5/15/31 41,805,000,000   IDR   3,447,052
senior note, FR66, 5.25%, 5/15/18 5,394,000,000   IDR   392,610
senior note, FR69, 7.875%, 4/15/19 20,859,000,000   IDR   1,555,143
          85,054,025
Mexico 12.4%          
Government of Mexico,          
senior bond, M, 8.00%, 6/11/20 1,881,620 d MXN   10,529,170
senior bond, M, 6.50%, 6/10/21 6,789,460 d MXN   36,642,331
senior note, M, 4.75%, 6/14/18 2,957,300 d MXN   16,187,342
senior note, M, 5.00%, 12/11/19 3,370,500 d MXN   17,877,782
senior note, M 10, 8.50%, 12/13/18 7,037,900 d MXN   38,980,841

 

|2

 

TEMPLETON GLOBAL INCOME FUND
STATEMENT OF INVESTMENTS (UNAUDITED)

  Principal        
  Amount*       Value
Foreign Government and Agency Securities (continued)          
Mexico (continued)          
e Mexican Udibonos,          
Index Linked, 4.00%, 6/13/19 139,574 f MXN $ 764,693
Index Linked, 2.50%, 12/10/20. 110,070 f MXN   587,689
          121,569,848
Peru 3.3%          
Government of Peru, senior bond, 7.84%, 8/12/20 93,349,000   PEN   32,324,409
Philippines 1.3%          
Government of the Philippines,          
senior note, 3.375%, 8/20/20 9,870,000   PHP   185,884
senior note, 5-72, 2.125%, 5/23/18. 82,557,000   PHP   1,580,894
senior note, 7-51, 5.00%, 8/18/18 11,330,000   PHP   218,362
senior note, 7-56, 3.875%, 11/22/19 578,780,000   PHP   11,052,992
          13,038,132
South Korea 1.9%          
Korea Monetary Stabilization Bond,          
senior note, 1.72%, 12/02/18 2,500,000,000   KRW   2,354,282
senior note, 2.06%, 12/02/19 17,540,000,000   KRW   16,513,598
          18,867,880
g Supranational 1.0%          
Inter-American Development Bank, senior bond, 7.50%, 12/05/24 185,000,000   MXN   10,159,172
Ukraine 0.8%          
h,i,j Government of Ukraine, 144A, VRI, GDP Linked Security, 5/31/40 11,154,000       7,809,194
Total Foreign Government and Agency Securities (Cost $600,362,147) .         603,507,968
 
 
 
Short Term Investments 34.4%          
Foreign Government and Agency Securities 3.8%          
Argentina 0.6%          
Letras del Banco Central de la Republica Argentina, Strip, 5/16/18 - 10/17/18 133,966,000   ARS   6,085,151
Mexico 0.6%          
k Mexico Treasury Bill, 12/06/18 10,108,090 l MXN   5,278,591
South Korea 2.6%          
Korea Monetary Stabilization Bond,          
senior note, 1.33%, 10/02/18 10,180,000,000   KRW   9,589,871
senior note, 1.61%, 10/08/18 17,210,000,000   KRW   16,205,032
          25,794,903
Total Foreign Government and Agency Securities (Cost $36,002,965)         37,158,645
U.S. Government and Agency Securities 7.3%          
United States 7.3%          
k U.S. Treasury Bill,          
9/13/18 12,376,000       12,271,479
9/20/18 13,406,000       13,286,842
1/31/19 13,772,000       13,541,461
2/28/19 20,296,000       19,925,863

 

|3

 

TEMPLETON GLOBAL INCOME FUND
STATEMENT OF INVESTMENTS (UNAUDITED)

  Principal    
  Amount*   Value
Short Term Investments (continued)      
U.S. Government and Agency Securities (continued)      
United States (continued)      
U.S. Treasury Note,      
1.50%, 8/31/18 6,703,000 $ 6,692,460
2.75%, 2/15/19 6,497,000   6,532,838
Total U.S. Government and Agency Securities (Cost $72,237,789)     72,250,943
Total Investments before Money Market Funds (Cost $708,602,901)     712,917,556
 
 
  Shares    
 
Money Market Funds (Cost $228,872,542) 23.3%      
United States 23.3%      
      m,n Institutional Fiduciary Trust Money Market Portfolio, 1.24% 228,872,542   228,872,542
Total Investments (Cost $937,475,443) 95.9%     941,790,098
Other Assets, less Liabilities 4.1%     39,876,598
Net Assets 100.0%.   $ 981,666,696

 

*The principal amount is stated in U.S. dollars unless otherwise indicated.
aThe coupon rate shown represents the rate at period end.
bPrincipal amount is stated in 1,000 Brazilian Real Units.
cRedemption price at maturity and coupon payment are adjusted for inflation.
dPrincipal amount is stated in 100 Mexican Peso Units.
ePrincipal amount of security is adjusted for inflation.
fPrincipal amount is stated in 100 Unidad de Inversion Units.
gA supranational organization is an entity formed by two or more central governments through international treaties.
hNon-income producing.
iSecurity 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. This security has been deemed liquid under guidelines approved by the Fund’s Board of Trustees.
jThe principal represents the notional amount. See Note 3 regarding value recovery instruments.
kThe security was issued on a discount basis with no stated coupon rate.
lPrincipal amount is stated in 10 Mexican Peso Units.
mSee Note 5 regarding investments in affiliated management investment companies.
nThe rate shown is the annualized seven-day effective yield at period end.

|4

 

TEMPLETON GLOBAL INCOME FUND
STATEMENT OF INVESTMENTS (UNAUDITED)

At March 31, 2018, the Fund had the following forward exchange contracts outstanding. See Note 3.          
 
Forward Exchange Contracts                    
        Contract   Settlement   Unrealized   Unrealized  
Currency Counterpartya Type Quantity Amount*   Date   Appreciation   Depreciation  
OTC Forward Exchange Contracts                      
Euro GSCO Buy 1,784,250 2,203,192   4/03/18 $ — $ (7,158 )
Euro GSCO Sell 1,784,250 2,181,745   4/03/18   —   (14,289 )
Japanese Yen JPHQ Sell 557,950,000 4,996,798   4/06/18   —   (249,482 )
Australian Dollar CITI Sell 2,549,800 1,990,909   4/09/18   33,037   —  
Euro BOFA Sell 4,891,000 5,934,201   4/09/18   —   (88,159 )
Euro JPHQ Sell 893,000 1,085,299   4/09/18   —   (14,266 )
Euro SCNY Sell 1,325,806 1,608,295   4/09/18   —   (24,189 )
Euro UBSW Sell 13,525,000 16,409,883   4/09/18   —   (243,650 )
Euro BZWS Sell 4,094,000 4,930,200   4/10/18   —   (111,163 )
Euro HSBK Sell 13,422,375 16,160,271   4/10/18   —   (368,076 )
Euro JPHQ Sell 4,312,000 5,188,112   4/10/18   —   (121,696 )
South Korean Won HSBK Buy 13,796,869,757 12,898,712   4/10/18   89,156   —  
South Korean Won HSBK Sell 13,796,869,757 13,011,005   4/10/18   23,137   —  
Euro JPHQ Sell 3,156,669 3,786,835   4/11/18   —   (100,573 )
Japanese Yen BZWS Sell 192,016,500 1,720,919   4/11/18   —   (85,138 )
Japanese Yen HSBK Sell 555,000,000 4,968,666   4/11/18   —   (251,517 )
Euro JPHQ Sell 3,541,777 4,395,434   4/12/18   33,458   —  
Indian Rupee JPHQ Buy 412,387,000 5,347,471 EUR 4/12/18   —   (259,781 )
Japanese Yen CITI Sell 146,000,000 1,344,197   4/13/18   —   (29,213 )
Japanese Yen DBAB Sell 277,200,000 2,553,215   4/13/18   —   (54,383 )
Euro GSCO Sell 748,727 915,042   4/16/18   —   (7,337 )
Euro SCNY Sell 6,873,000 8,322,516   4/16/18   —   (144,536 )
South Korean Won CITI Buy 3,253,616,000 3,042,204   4/16/18   21,101   —  
South Korean Won CITI Sell 3,870,000,000 3,618,344   4/16/18   —   (25,291 )
Euro BOFA Sell 851,370 1,038,842   4/17/18   —   (10,061 )
Euro JPHQ Sell 2,765,652 3,375,865   4/17/18   —   (31,466 )
Euro GSCO Sell 3,105,000 3,819,461   4/18/18   —   (6,227 )
Euro JPHQ Sell 16,548,946 20,360,996   4/18/18   —   (29,049 )
Euro MSCO Sell 4,545,000 5,621,802   4/19/18   21,483   —  
Indonesian Rupiah JPHQ Buy 111,570,000,000 10,464,266 AUD 4/19/18   75,443   —  
Euro JPHQ Sell 6,359,037 7,833,125   4/23/18   —   (4,674 )
Euro UBSW Sell 1,228,000 1,512,196   4/23/18   —   (1,369 )
Japanese Yen CITI Sell 220,552,000 2,079,992   4/23/18   3,973   —  
Euro JPHQ Sell 2,459,575 3,030,664   4/24/18   —   (1,090 )
South Korean Won HSBK Buy 17,512,000,000 16,365,590   4/24/18   125,470   —  
South Korean Won HSBK Sell 17,512,000,000 16,385,497   4/24/18   —   (105,563 )
Japanese Yen MSCO Sell 155,600,000 1,479,946   4/26/18   15,032   —  
Mexican Peso CITI Buy 350,137,330 15,738,859 EUR 4/27/18   —   (229,274 )
Mexican Peso DBAB Buy 129,747,300 5,830,800 EUR 4/27/18   —   (83,221 )
Mexican Peso JPHQ Buy 39,025,000 1,666,169 EUR 4/27/18   82,973   —  
Mexican Peso MSCO Buy 117,000,000 4,995,730 EUR 4/27/18   248,233   —  
Euro BZWS Sell 2,175,778 2,707,321   4/30/18   24,225   —  
Euro SCNY Sell 4,300,311 5,342,083   4/30/18   39,086   —  
South Korean Won HSBK Buy 22,030,000,000 20,582,533   4/30/18   166,296   —  
South Korean Won HSBK Sell 35,000,000,000 31,091,765   4/30/18   —   (1,872,784 )
Euro GSCO Sell 3,568,500 4,477,290   5/02/18   76,091   —  
Euro JPHQ Sell 33,330 41,786   5/02/18   679   —  
Indian Rupee HSBK Buy 610,744,000 7,695,537 EUR 5/02/18   —   (139,318 )
Euro GSCO Sell 1,784,250 2,207,831   5/03/18   7,070   —  

 

|5

 

TEMPLETON GLOBAL INCOME FUND
STATEMENT OF INVESTMENTS (UNAUDITED)

Forward Exchange Contracts (continued)                      
 
        Contract     Settlement   Unrealized   Unrealized  
Currency Counterpartya Type Quantity Amount*     Date   Appreciation   Depreciation  
OTC Forward Exchange Contracts (continued)                      
Euro BOFA Sell 1,677,316 2,099,161     5/07/18 $ 29,689 $ —  
Australian Dollar CITI Sell 2,549,800 1,991,037     5/09/18   33,102   —  
Japanese Yen CITI Sell 104,080,747 919,949     5/09/18   —   (60,794 )
Euro CITI Sell 1,417,000 1,747,076     5/14/18   —   (2,117 )
Euro HSBK Sell 7,662,000 9,466,056     5/14/18   7,821   —  
Euro JPHQ Sell 3,541,777 4,405,255     5/14/18   33,165   —  
Euro JPHQ Sell 26,790,000 33,031,266     5/14/18   —   (39,226 )
Japanese Yen CITI Sell 111,910,666 996,369     5/14/18   —   (58,516 )
Japanese Yen JPHQ Sell 102,242,000 911,329     5/14/18   —   (52,418 )
Australian Dollar JPHQ Sell 7,979,000 6,090,012     5/15/18   —   (36,966 )
Euro GSCO Sell 1,183,000 1,469,428     5/15/18   8,985   —  
Japanese Yen GSCO Sell 203,561,000 1,812,524     5/15/18   —   (106,401 )
Japanese Yen HSBK Sell 286,780,000 2,563,970     5/15/18   —   (139,443 )
Japanese Yen SCNY Sell 152,158,000 1,358,808     5/15/18   —   (75,552 )
Mexican Peso CITI Buy 424,000,000 2,412,093,600 JPY   5/15/18   411,869   —  
South Korean Won CITI Sell 5,173,000,000 4,646,546     5/15/18   —   (227,450 )
Euro BOFA Sell 12,531,000 15,633,926     5/16/18   162,958   —  
Japanese Yen CITI Sell 152,157,000 1,354,180     5/16/18   —   (80,269 )
Japanese Yen JPHQ Sell 1,900,700,000 16,929,572     5/16/18   —   (989,142 )
Japanese Yen SCNY Sell 103,657,300 922,193     5/16/18   —   (55,028 )
South Korean Won HSBK Sell 7,321,000,000 6,549,765     5/17/18   —   (348,422 )
Japanese Yen BOFA Sell 705,633,500 6,333,664     5/18/18   —   (319,559 )
Japanese Yen CITI Sell 1,131,241,500 10,147,802     5/18/18   —   (518,360 )
South Korean Won DBAB Sell 5,870,000,000 5,284,004     5/18/18   —   (247,122 )
Euro JPHQ Sell 6,359,037 7,988,158     5/21/18   134,307   —  
Euro SCNY Sell 3,955,000 4,962,081     5/21/18   77,382   —  
Euro UBSW Sell 5,829,129 7,314,566     5/21/18   115,188   —  
Japanese Yen BOFA Sell 704,526,000 6,417,179     5/21/18   —   (226,970 )
Japanese Yen CITI Sell 1,131,241,600 10,111,838     5/21/18   —   (556,523 )
Japanese Yen DBAB Sell 1,279,817,000 11,779,123     5/21/18   —   (290,403 )
Japanese Yen HSBK Sell 707,007,200 6,453,740     5/21/18   —   (213,808 )
South Korean Won CITI Sell 6,847,000,000 6,348,927     5/21/18   —   (103,284 )
Euro JPHQ Sell 11,085,000 13,772,337     5/22/18   80,587   —  
Euro UBSW Sell 370,478 460,430     5/22/18   2,830   —  
Indonesian Rupiah JPHQ Buy 34,485,000,000 3,289,926 AUD  5/22/18   —   (24,102 )
Japanese Yen BOFA Sell 706,440,000 6,473,974     5/22/18   —   (188,683 )
Japanese Yen CITI Sell 307,053,000 2,761,968     5/22/18   —   (133,944 )
Japanese Yen HSBK Sell 1,286,140,000 12,073,031     5/22/18   —   (56,957 )
Japanese Yen JPHQ Sell 1,459,049,000 13,576,995     5/22/18   —   (183,752 )
South Korean Won CITI Buy 16,347,000,000 15,365,397     5/23/18   39,830   —  
South Korean Won CITI Sell 16,347,000,000 15,157,865     5/23/18   —   (247,362 )
Japanese Yen SCNY Sell 696,345,000 6,262,726     5/24/18   —   (305,623 )
Japanese Yen BOFA Sell 860,890,000 7,883,608     5/25/18   —   (237,387 )
Japanese Yen HSBK Sell 951,318,000 8,886,224     5/29/18   —   (90,306 )
Japanese Yen JPHQ Sell 777,557,000 7,320,871     5/29/18   —   (16,070 )
Japanese Yen MSCO Sell 155,600,000 1,483,105     5/29/18   14,881   —  
Euro BOFA Sell 8,723,695 10,825,233     5/31/18   42,567   —  
Euro BZWS Sell 2,175,778 2,697,203     5/31/18   7,897   —  
Euro GSCO Sell 900,000 1,115,307     5/31/18   2,888   —  
Euro SCNY Sell 4,385,600 5,428,102     5/31/18   7,409   —  
Indian Rupee DBAB Buy 1,151,765,600 14,154,497 EUR  5/31/18   76,349   —  
Japanese Yen BZWS Sell 726,500,000 6,851,834     5/31/18   —   (4,340 )

 

|6

 

TEMPLETON GLOBAL INCOME FUND
STATEMENT OF INVESTMENTS (UNAUDITED)

Forward Exchange Contracts (continued)                  
 
        Contract Settlement   Unrealized   Unrealized  
Currency Counterpartya Type Quantity Amount* Date   Appreciation   Depreciation  
OTC Forward Exchange Contracts (continued)                  
Japanese Yen DBAB Sell 509,728,000 4,798,795 5/31/18 $ — $ (11,644 )
Euro BOFA Sell 1,471,272 1,816,815 6/01/18   —   (1,862 )
Japanese Yen HSBK Sell 980,688,000 9,191,078 6/01/18   —   (64,612 )
Euro GSCO Sell 1,784,250 2,191,469 6/04/18   —   (14,651 )
Australian Dollar GSCO Sell 26,618,090 20,134,722 6/05/18   —   (306,524 )
Japanese Yen JPHQ Sell 416,700,000 3,917,458 6/05/18   —   (16,487 )
Japanese Yen HSBK Sell 196,900,000 1,878,817 6/06/18   19,805   —  
Euro BOFA Sell 1,677,316 2,078,413 6/07/18   3,980   —  
Japanese Yen CITI Sell 153,700,000 1,383,849 6/08/18   —   (67,506 )
Japanese Yen HSBK Sell 115,050,000 1,031,677 6/11/18   —   (54,954 )
Australian Dollar JPHQ Sell 25,286,000 19,821,695 6/12/18   402,635   —  
Euro JPHQ Sell 3,541,777 4,414,163 6/12/18   31,978   —  
Japanese Yen CITI Sell 496,800,000 4,424,692 6/12/18   —   (267,853 )
Japanese Yen HSBK Sell 945,842,800 8,967,035 6/12/18   33,037   —  
Australian Dollar CITI Sell 16,864,000 13,220,364 6/13/18   269,129   —  
Japanese Yen CITI Sell 230,997,000 2,059,164 6/13/18   —   (122,887 )
Japanese Yen DBAB Sell 167,200,000 1,573,751 6/13/18   —   (5,659 )
Japanese Yen HSBK Sell 505,050,000 4,501,738 6/13/18   —   (269,082 )
Japanese Yen JPHQ Sell 467,930,000 4,171,484 6/13/18   —   (248,691 )
South Korean Won DBAB Sell 5,874,000,000 5,500,258 6/14/18   —   (39,135 )
Australian Dollar JPHQ Sell 7,979,000 6,297,904 6/15/18   170,111   —  
Euro JPHQ Sell 6,359,037 7,925,109 6/15/18   55,161   —  
Japanese Yen JPHQ Sell 197,300,000 1,762,394 6/15/18   —   (101,620 )
Australian Dollar JPHQ Sell 8,540,000 6,716,479 6/18/18   157,730   —  
Euro BOFA Sell 12,531,000 15,606,985 6/18/18   94,645   —  
Japanese Yen HSBK Sell 187,120,000 1,743,083 6/18/18   —   (25,142 )
Japanese Yen MSCO Sell 245,000,000 2,190,199 6/18/18   —   (124,974 )
Euro GSCO Sell 748,727 929,821 6/19/18   2,881   —  
Japanese Yen BZWS Sell 132,990,000 1,261,543 6/19/18   4,738   —  
Japanese Yen DBAB Sell 186,830,000 1,722,634 6/19/18   —   (42,980 )
Japanese Yen JPHQ Sell 1,012,400,000 9,114,890 6/19/18   —   (452,670 )
Euro GSCO Sell 3,855,546 4,775,672 6/20/18   2,012   —  
Euro UBSW Sell 5,829,129 7,235,785 6/20/18   18,576   —  
Japanese Yen CITI Sell 207,460,000 1,899,295 6/20/18   —   (61,423 )
South Korean Won CITI Sell 2,579,000,000 2,424,556 6/20/18   —   (8,016 )
Japanese Yen DBAB Sell 187,160,000 1,706,730 6/22/18   —   (62,391 )
Japanese Yen BZWS Sell 125,158,380 1,193,576 6/26/18   10,177   —  
Japanese Yen JPHQ Sell 777,557,000 7,444,869 6/28/18   91,825   —  
Euro BOFA Sell 8,723,695 10,894,848 6/29/18   85,623   —  
Euro GSCO Sell 900,000 1,124,010 6/29/18   8,852   —  
Japanese Yen JPHQ Sell 130,931,000 1,240,206 6/29/18   1,953   —  
Japanese Yen CITI Sell 94,950,000 860,740 7/12/18   —   (38,083 )
Japanese Yen BZWS Sell 518,550,000 4,703,060 7/17/18   —   (207,475 )
Japanese Yen HSBK Sell 372,780,000 3,382,759 7/17/18   —   (147,372 )
Japanese Yen DBAB Sell 631,276,974 5,874,065 7/30/18   —   (109,656 )
Japanese Yen JPHQ Sell 95,800,000 890,513 7/30/18   —   (17,553 )
Japanese Yen CITI Sell 152,232,000 1,407,282 8/09/18   —   (36,746 )
Japanese Yen CITI Sell 613,483,000 5,672,153 8/13/18   —   (148,872 )
Japanese Yen CITI Sell 111,910,667 1,002,110 8/14/18   —   (59,830 )
Japanese Yen JPHQ Sell 100,450,000 944,066 8/15/18   —   (9,192 )
Japanese Yen JPHQ Sell 1,893,639,000 17,852,056 8/16/18   —   (119,662 )
Japanese Yen DBAB Sell 303,441,000 2,871,591 8/27/18   —   (10,563 )

 

|7

 

TEMPLETON GLOBAL INCOME FUND
STATEMENT OF INVESTMENTS (UNAUDITED)

Forward Exchange Contracts (continued)                            
 
          Contract   Settlement Unrealized   Unrealized  
Currency Counterpartya Type Quantity Amount*   Date Appreciation Depreciation  
OTC Forward Exchange Contracts (continued)                            
Japanese Yen   HSBK Sell 115,050,000 1,037,880   9/11/18 $   — $   (56,096 )
Japanese Yen   GSCO Sell 195,642,140 1,865,924   9/18/18     4,665     —  
Mexican Peso   HSBK Buy 104,380,700 4,282,285 EUR 10/29/18     192,182     —  
Japanese Yen   BZWS Sell 474,230,000 4,311,495   1/11/19     —     (243,440 )
Japanese Yen   GSCO Sell 69,178,000 628,719   1/11/19     —     (35,729 )
Japanese Yen   JPHQ Sell 557,950,000 5,069,438   1/11/19     —     (289,620 )
Japanese Yen   JPHQ Sell 154,420,000 1,419,301   1/16/19     —     (64,474 )
Japanese Yen   SCNY Sell 219,020,000 2,024,214   1/22/19     —     (81,280 )
Japanese Yen   BZWS Sell 146,100,000 1,351,852   1/24/19     —     (52,866 )
Japanese Yen   DBAB Sell 95,240,000 878,201   1/24/19     —     (37,510 )
Japanese Yen   CITI Sell 178,564,000 1,657,853   1/25/19     —     (59,135 )
Japanese Yen   JPHQ Sell 275,000,000 2,551,044   1/25/19     —     (93,226 )
Japanese Yen   HSBK Sell 817,266,455 7,676,026   1/31/19     —     (186,150 )
Japanese Yen   CITI Sell 111,910,667 1,056,334   2/14/19     —     (21,449 )
Total Forward Exchange Contracts             $ 4,037,342 $   (15,447,034 )
Net unrealized appreciation (depreciation)                     $   (11,409,692 )
 
*In U.S. dollars unless otherwise indicated.                              
aMay be comprised of multiple contracts with the same counterparty, currency and settlement date.                      
 
 
At March 31, 2018, the Fund had the following interest rate swap contracts outstanding. See Note 3.              
 
Interest Rate Swap Contracts                            
                              Value/  
                              Unrealized  
                              Appreciation  
              Payment   Maturity     Notional   (Deprecia-  
Description         Frequency Date     Amount   tion)  
Centrally Cleared Swap Contracts                                
Receive Floating 3-month USD LIBOR.           Quarterly                  
Pay Fixed 1.914%         Semi-Annual 1/22/25   $ 35,260,000 $ 1,774,199  
Receive Floating 3-month USD LIBOR.           Quarterly                  
Pay Fixed 1.970%         Semi-Annual 1/23/25     17,628,000   824,381  
Receive Floating 3-month USD LIBOR.           Quarterly                  
Pay Fixed 1.973%         Semi-Annual 1/27/25     10,404,000   485,028  
Receive Floating 3-month USD LIBOR.           Quarterly                  
Pay Fixed 1.942%         Semi-Annual 1/30/25     5,500,000   267,778  
Receive Floating 3-month USD LIBOR.           Quarterly                  
Pay Fixed 1.978%         Semi-Annual 3/27/25     800,000   38,592  
Receive Floating 3-month USD LIBOR.           Quarterly                  
Pay Fixed 1.985%         Semi-Annual 3/27/25     800,000   38,217  
Receive Floating 3-month USD LIBOR.           Quarterly                  
Pay Fixed 2.449%         Semi-Annual 7/02/25     6,340,000   107,386  
Receive Floating 3-month USD LIBOR.           Quarterly                  
Pay Fixed 2.310%         Semi-Annual 7/29/25     16,220,000   437,358  
Receive Floating 3-month USD LIBOR.           Quarterly                  
Pay Fixed 2.752%         Semi-Annual 7/29/45     23,960,000   325,983  
Receive Floating 3-month USD LIBOR.           Quarterly                  
Pay Fixed 2.378%         Semi-Annual 11/18/46     56,100,000   4,790,181  

 

|8

 

TEMPLETON GLOBAL INCOME FUND
STATEMENT OF INVESTMENTS (UNAUDITED)

Interest Rate Swap Contracts (continued)              
 
            Value/  
            Unrealized  
            Appreciation  
  Payment Maturity   Notional   (Deprecia-  
Description Frequency Date   Amount   tion)  
Centrally Cleared Swap Contracts (continued)              
Receive Floating 3-month USD LIBOR. Quarterly            
Pay Fixed 2.794% Semi-Annual 3/13/47 $ 10,100,000 $ 61,759  
Receive Floating 3-month USD LIBOR. Quarterly            
Pay Fixed 2.537% Semi-Annual 4/13/47   12,300,000   635,015  
Receive Floating 3-month USD LIBOR. Quarterly            
Pay Fixed 2.980% Semi-Annual 2/20/48   12,196,000   (449,060 )
Receive Floating 3-month USD LIBOR. Quarterly            
Pay Fixed 3.002% Semi-Annual 2/22/48   12,196,000   (489,457 )
Receive Floating 3-month USD LIBOR. Quarterly            
Pay Fixed 3.019% Semi-Annual 2/23/48   12,196,000   (532,958 )
TotalInterestRateSwapContracts         $ 8,314,402  
 
See Abbreviations on page 13.              

 

|9

 

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 a closed-end management investment company and applies the specialized accounting and reporting guidance in U.S. Generally Accepted Accounting Principles (U.S. GAAP).

2. FINANCIAL INSTRUMENT VALUATION

The Fund’s investments in financial instruments are carried at fair value daily. Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants on the measurement date. The Fund calculates the net asset value (NAV) per share as of 4 p.m. Eastern time each day the New York Stock Exchange (NYSE) is open for trading. Under compliance policies and procedures approved by the Fund’s Board of Trustees (the Board), the Fund’s administrator has responsibility for oversight of valuation, including leading the cross-functional Valuation Committee (VC). The VC provides administration and oversight of the Fund’s valuation policies and procedures, which are approved annually by the Board. Among other things, these procedures allow the Fund to utilize independent pricing services, quotations from securities and financial instrument dealers, and other market sources to determine fair value.

Debt securities generally trade in the over-the-counter (OTC) market rather than on a securities exchange. The Fund’s pricing services use multiple valuation techniques to determine fair value. In instances where sufficient market activity exists, the pricing services may utilize a market-based approach through which quotes from market makers are used to determine fair value. In instances where sufficient market activity may not exist or is limited, the pricing services also utilize proprietary valuation models which may consider market characteristics such as benchmark yield curves, credit spreads, estimated default rates, anticipated market interest rate volatility, coupon rates, anticipated timing of principal repayments, underlying collateral, and other unique security features in order to estimate the relevant cash flows, which are then discounted to calculate the fair value. Securities denominated in a foreign currency are converted into their U.S. dollar equivalent at the foreign exchange rate in effect at 4 p.m. Eastern time on the date that the values of the foreign debt securities are determined.

Investments in open-end mutual funds are valued at the closing NAV.

Certain derivative financial instruments are centrally cleared or trade in the OTC market. The Fund’s pricing services use various techniques including industry standard option pricing models and proprietary discounted cash flow models to determine the fair value of those instruments. The Fund’s net benefit or obligation under the derivative contract, as measured by the fair value of the contract, is included in net assets.

The Fund has procedures to determine the fair value of financial instruments for which market prices are not reliable or readily available. Under these procedures, the VC convenes on a regular basis to review such financial instruments and considers a number of factors, including significant unobservable valuation inputs, when arriving at fair value. The VC primarily employs a market-based approach which may use related or comparable assets or liabilities, recent transactions, market multiples, book values, and other relevant information for the investment to determine the fair value of the investment. An income-based valuation approach may also be used in which the anticipated future cash flows of the investment are discounted to calculate fair value. Discounts may also be applied due to the nature or duration of any restrictions on the disposition of the investments. Due to the inherent uncertainty of valuations of such investments, the fair values may differ significantly from the values that would have been used had an active market existed. The VC employs various methods for calibrating these valuation approaches including a regular review of key inputs and assumptions, transactional back-testing or disposition analysis, and reviews of any related market activity.

|10

 

TEMPLETON GLOBAL INCOME FUND

NOTES TO STATEMENT OF INVESTMENTS (UNAUDITED)

3. DERIVATIVE FINANCIAL INSTRUMENTS

The Fund invested in derivative financial instruments 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 factors, and require or permit net settlement. Derivatives 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/or the potential for market movements.

Derivative counterparty credit risk is managed through a formal evaluation of the creditworthiness of all potential counterparties. The Funds attempts to reduce its exposure to counterparty credit risk on OTC derivatives, whenever possible, by entering into International Swaps and Derivatives Association (ISDA) master agreements with certain counterparties. These agreements contain various provisions, including but not limited to collateral requirements, events of default, or early termination. Termination events applicable to the counterparty include certain deteriorations in the credit quality of the counterparty. Termination events applicable to the Fund include failure of the Fund to maintain certain net asset levels and/or limit the decline in net assets over various periods of time. In the event of default or early termination, the ISDA master agreement gives the non-defaulting party the right to net and close-out all transactions traded, whether or not arising under the ISDA agreement, to one net amount payable by one counterparty to the other. Early termination by the counterparty may result in an immediate payment by the Fund of any net liability owed to that counterparty under the ISDA agreement.

Collateral requirements differ by type of derivative. Collateral or initial margin requirements are set by the broker or exchange clearing house for exchange traded and centrally cleared derivatives. Initial margin deposited is held at the exchange and can be in the form of cash and/or securities. For OTC derivatives traded under an ISDA master agreement, posting of collateral is required by either the Fund or the applicable counterparty if the total net exposure of all OTC derivatives with the applicable counterparty exceeds the minimum transfer amount, which typically ranges from $100,000 to $250,000, and can vary depending on the counterparty and the type of the agreement. Generally, collateral is determined at the close of Fund business each day and any additional collateral required due to changes in derivative values may be delivered by the Fund or the counterparty the next business day, or within a few business days. Collateral pledged and/or received by the Fund for OTC derivatives, if any, is held in segregated accounts with the Fund’s custodian/counterparty broker and can be in the form of cash and/or securities. Unrestricted cash may be invested according to the Fund’s investment objectives. To the extent that the amounts due to the Fund from its counterparties are not subject to collateralization or are not fully collateralized, the Fund bears the risk of loss from counterparty non-performance.

The Fund entered into OTC forward exchange contracts primarily to manage and/or 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 entered into interest rate swap contracts primarily 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 amount. These agreements may be privately negotiated in the over-the-counter market (OTC interest rate swaps) or may be executed on a registered exchange (centrally cleared interest rate swaps). For centrally cleared interest rate swaps, required initial margins are pledged by the Fund, and the daily change in fair value is accounted for as a variation margin payable or receivable. 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.

The Fund invests in value recovery instruments (VRI) primarily to gain exposure to economic growth. Periodic payments from VRI are dependent on established benchmarks for underlying variables. VRI has a notional amount, which is used to calculate amounts of payments to holders. Payments are recorded upon receipt as realized gains. The risks of investing in VRI include growth risk, liquidity, and the potential loss of investment.

|11

 

TEMPLETON GLOBAL INCOME FUND

NOTES TO STATEMENT OF INVESTMENTS (UNAUDITED)

4. CONCENTRATION OF RISK

Investing in foreign securities may include certain risks and considerations not typically associated with investing in U.S. securities, such as fluctuating currency values and changing local and regional economic, political and social conditions, which may result in greater market volatility. In addition, certain foreign securities may not be as liquid as U.S. securities.

5. INVESTMENTS IN AFFILIATED MANAGEMENT INVESTMENT COMPANIES

The Fund invests in one or more affiliated management investment companies for purposes other than exercising a controlling influence over the management or policies. During the period ended March 31, 2018, the Fund held investments in affiliated management investment companies as follows:

  Number of       Number of           Net Change in
  Shares Held       Shares   Value       Unrealized
  at Beginning Gross Gross   Held at End   at End   Dividend Realized Appreciation
  of Period Additions Reductions   of Period   of Period   Income Gain (Loss) (Depreciation)
 
Non-Controlled Affiliates                      
Institutional Fiduciary Trust Money Market                      
Portfolio, 1.24% 123,219,957 203,140,594 (97,488,009 ) 228,872,542 $ 228,872,542 $ 478,511 $— $—

 

6. FAIR VALUE MEASUREMENTS

The Fund follows 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 financial instruments and are summarized in the following fair value hierarchy:

  • Level 1 – quoted prices in active markets for identical financial instruments
  • Level 2 – other significant observable inputs (including quoted prices for similar financial instruments, interest rates, prepayment speed, credit risk, etc.)
  • Level 3 – significant unobservable inputs (including the Fund’s own assumptions in determining the fair value of financial instruments)

The input levels are not necessarily an indication of the risk or liquidity associated with financial instruments at that level.

For movements between the levels within the fair value hierarchy, the Fund has adopted a policy of recognizing the transfers as of the date of the underlying event which caused the movement.

A summary of inputs used as of March 31, 2018, in valuing the Fund’s assets and liabilities carried at fair value, is as follows:

    Level 1   Level 2   Level 3   Total
Assets:                
Investments in Securities:a                
Foreign Government and Agency Securities $ — $ 603,507,968 $ — $ 603,507,968
Short Term Investments   287,898,187   50,383,943   —   338,282,130
Total Investments in Securities $ 287,898,187 $ 653,891,911 $ — $ 941,790,098
 
Other Financial Instruments:                
Forward Exchange Contracts $ — $ 4,037,342 $ — $ 4,037,342
Swap Contracts.   —   9,785,877   —   9,785,877
Total Other Financial Instruments $ — $ 13,823,219 $ — $ 13,823,219

 

|12

 

TEMPLETON GLOBAL INCOME FUND

NOTES TO STATEMENT OF INVESTMENTS (UNAUDITED)

    Level 1   Level 2   Level 3   Total
Liabilities:                
Other Financial Instruments:                
Forward Exchange Contracts $ — $ 15,447,034 $ — $ 15,447,034
Swap Contracts.   —   1,471,475   —   1,471,475
Total Other Financial Instruments $ — $ 16,918,509 $ — $ 16,918,509
 
aFor detailed categories, see the accompanying Statement of Investments.              

 

7. SUBSEQUENT EVENTS

The Fund has evaluated subsequent events through the issuance of the Statement of Investments and determined that no events have occurred that require disclosure.

Abbreviations        
 
Counterparty Currency Selected Portfolio
BOFA Bank of America Corp. ARS Argentine Peso BADLAR Argentina Deposit Rates Badlar Private
BZWS Barclays Bank PLC AUD Australian Dollar   Banks ARS
CITI Citigroup, Inc. BRL Brazilian Real FRN Floating Rate Note
DBAB Deutsche Bank AG COP Colombian Peso GDP Gross Domestic Product
GSCO The Goldman Sachs Group, Inc. EUR Euro LIBOR London InterBank Offered Rate
HSBK HSBC Bank PLC GHS Ghanaian Cedi VRI Value Recovery Instruments
JPHQ JP Morgan Chase & Co. IDR Indonesian Rupiah    
MSCO Morgan Stanley INR Indian Rupee    
SCNY Standard Chartered Bank JPY Japanese Yen    
UBSW UBS AG KRW South Korean Won    
    MXN Mexican Peso    
    PEN Peruvian Nuevo Sol    
    PHP Philippine Peso    
    USD United States Dollar    

 

For additional information on the Fund’s significant accounting policies, please refer to the Fund’s most recent semiannual or annual shareholder report.

|13

 

 

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 changes in the Registrant’s internal controls or in other factors that could materially affect the internal controls over financial reporting 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 Matthew T. Hinkle, Chief Executive Officer - Finance and Administration, and Robert G. Kubilis, 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/Matthew T. Hinkle

   Matthew T. Hinkle

Chief Executive Officer –

 Finance and Administration

Date May 24, 2018

 

 

 

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/Matthew T. Hinkle

   Matthew T. Hinkle

Chief Executive Officer –

 Finance and Administration

Date May 24, 2018

 

 

 

By /s/Robert G. Kubilis

   Robert G. Kubilis

   Chief Financial Officer and

    Chief Accounting Officer

Date May 24, 2018