-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: keymaster@town.hall.org Originator-Key-Asymmetric: MFkwCgYEVQgBAQICAgADSwAwSAJBALeWW4xDV4i7+b6+UyPn5RtObb1cJ7VkACDq pKb9/DClgTKIm08lCfoilvi9Wl4SODbR1+1waHhiGmeZO8OdgLUCAwEAAQ== MIC-Info: RSA-MD5,RSA, phxU4V84qHm+QMpR4KtHNdWcpAel29PlfNPggv5w+QPq6Qx/Xa5vgi8Rm3hIpuXR 65U4G3dFG+/V6qX6eDIJ5g== 0000928385-95-000246.txt : 19950803 0000928385-95-000246.hdr.sgml : 19950803 ACCESSION NUMBER: 0000928385-95-000246 CONFORMED SUBMISSION TYPE: N-30B-2 PUBLIC DOCUMENT COUNT: 1 CONFORMED PERIOD OF REPORT: 19950531 FILED AS OF DATE: 19950802 SROS: NASD SROS: NYSE FILER: COMPANY DATA: COMPANY CONFORMED NAME: TEMPLETON GLOBAL INCOME FUND INC CENTRAL INDEX KEY: 0000828803 STANDARD INDUSTRIAL CLASSIFICATION: UNKNOWN SIC - 0000 [0000] STATE OF INCORPORATION: MD FISCAL YEAR END: 0831 FILING VALUES: FORM TYPE: N-30B-2 SEC ACT: 1940 Act SEC FILE NUMBER: 811-05459 FILM NUMBER: 95558372 BUSINESS ADDRESS: STREET 1: 700 CENTRAL AVE STREET 2: P O BOX 33030 CITY: ST PETERSBURG STATE: FL ZIP: 33701 BUSINESS PHONE: 8138238712 N-30B-2 1 QUARTERLY REPORT Templeton Global Income Fund - -------------------------------------------------------------------------------- Your Fund's Objective: Seeks current income, with capital appreciation and growth of income, by investing primarily in a portfolio of debt securities of companies, governments and government agencies of various nations throughout the world. - -------------------------------------------------------------------------------- July 21, 1995 Dear shareholder: This update for the quarter ended May 31, 1995, includes your Fund's long-term performance, a listing of its investments, and a brief update regarding the global investment environment. This update is one of four reports you will receive during the Fund's fiscal year. Next quarter, you will receive the annual report covering the 12-months ended August 31, 1995. The annual provides a more comprehensive discussion of the financial markets that impact the Fund, a summary of the Fund's performance, and insight into the manager's investment decisions and outlook. Also included are the Fund's audited financial statements and investment portfolio. If you have any questions about this quarterly update, you may call the Franklin Templeton Fund Information Department at 1-800/342-5236. 1 Manager's Discussion A slower rate of U.S. gross domestic product (GDP) growth in the first calendar quarter of 1995 than posted in the second half of 1994 and signs that the economy may be slowing further in the second quarter resulted in a strong surge in prices in the global bond markets. Longer-term interest rates in the U.S. declined from over 8% in November last year to under 7% this month. Rates in most of the other industrialized countries followed suit and declined by similar amounts. While the global economy continues to expand, inflation remains subdued. Some upward pressure on inflation is likely the longer the expansion continues. Indeed, as in the U.S., consumer prices are increasing moderately in other industrialized countries. However, that upward movement is muted compared with the experience in recent business cycles. It is for that reason that signs of slower economic growth in the U.S. in the last two months have resulted in a surge in prices in global bond markets. This may foreshadow a potential global trend for 1996. - -------------------------------------------------------------------------------- Templeton Global Income Fund Cumulative Total Returns* Periods Ended 5/31/95
Since Inception One-Year Five-Year (11/22/88) -------- --------- ---------- Based on change 9.60% 54.89% 70.64% in net asset value Based on change 7.82% 52.57% 39.66% in market price
*Total return calculations assume reinvestment of all distributions at net asset value or at market price in accordance with the dividend reinvestment plan. Past performance is not predictive of future results. - -------------------------------------------------------------------------------- Since our last report on February 28, 1995, we have taken advantage of higher bond values in the U.S. and reduced the fund's weighting there slightly, from 29.6% to 19.1% of total net assets as of May 31, 1995. We also increased the fund's exposure to Asian securities from 6.9% to 13.4% as of May 31, 1995. Specifically, we increased the fund's exposure to Japan, as we believe the growth prospects there appear favorable, given sustained low interest rates and good GDP 2 growth thus far in 1995. While the Kobe earthquake has certainly disrupted economic activity in the short-term, it could also stimulate rapid growth as rebuilding gets underway. Furthermore, the Bank of Japan has indicated that its monetary policy will take in to account the effects of the earthquake --meaning that the current low level of interest rates is likely to be maintained despite the prospects of somewhat stronger growth this year. As a result of the better performance of the global bond markets, the net asset value per share of the Templeton Global Income Fund increased in the three months ended May 31, 1995 to $8.00 from $7.68 on February 28, 1995. Over the same time period, the market price per share on the New York Stock Exchange remained the same at $6.88. /s/ Neil S. Devlin Neil S. Devlin Portfolio Manager, Templeton Global Income Fund 3 Templeton Global Income Fund, Inc. Investment Portfolio, May 31, 1995 (unaudited) - --------------------------------------------------------------------------------
PRINCIPAL IN LOCAL CURRENCY* VALUE - ------------------------------------------------------------------------------- BONDS--CORPORATE: 10.0% - ------------------------------------------------------------------------------- 3,500,000 U.S. AXA SA, 8.50%, 10/01/98 $ 2,432,500 5,700,000 U.S. Bombril SA, 8.00%, 8/26/98 4,788,000 10,000,000 Can. British Petroleum Co. PLC, 10.875%, 8/01/01 8,177,869 5,750,000 U.S. Companhia Suzano Papel, 10.25%, 10/06/01 5,290,000 5,174,661 U.S. Electricidad de Caracas, FRN, 9/30/03 2,250,978 4,750,000 U.S. Empresa Colombiana de Petroleos, 7.25%, 7/08/98 4,631,250 7,700,000 U.S. Essar Gujarat Ltd., 9.40%, 7/15/99 7,700,000 2,500,000 U.S. Henderson Capital International Ltd., 4.25%, 10/27/96 2,500,000 2,000,000 U.S. Hidroelectrica Alicura SA, 8.375%, 3/15/99 1,750,000 4,750,000 U.S. Klabin Fabricadora de Paprl Celulose SA, 11.00%, 4/15/98 4,666,875 10,700,000 Aus. News America Holdings Inc., 8.625%, 2/07/14 6,373,244 4,000,000 U.S. Petroliam Nasional Bhd., 6.875%, 7/01/03 3,966,960 5,000,000 U.S. Pohang Iron & Steel, 6.625%, 7/01/03 4,843,150 5,000,000 U.S. Quantas Airways Ltd., 7.50%, 6/30/03 5,031,900 8,000,000 U.S. Telecom Argentina Stet-France SA, 8.375%, 10/18/00 7,100,000 3,000,000 U.S. Telecom Brasileiras, 10.375%, 9/09/97 3,000,000 7,500,000 U.S. Telefonica de Argentina SA, 8.375%, 10/01/00 6,637,500 Thailand Military Bank: 100,000,000 Thai. 8.50%, 9/22/95 3,977,310 125,000,000 Thai. 7.50%, 10/02/95 4,991,137 90,000,000 Thai. 11.125%, 6/03/96 3,646,677 ------------ TOTAL BONDS--CORPORATE 96,105,431 - ------------------------------------------------------------------------------- BONDS--GOVERNMENT & GOVERNMENT AGENCIES: 83.6% - ------------------------------------------------------------------------------- 9,000,000 Ger. Bank Foreign Economic Affairs, 7.50%, 9/27/96 6,124,722 3,000,000 U.S. Bocon Previsionales II, FRN, 4/01/01 2,482,500 23,790,000 Ger. Deutsche Bundespost, 7.75%, 10/01/04 17,806,126 14,300,000 Aus. Eurofima, 9.875%, 1/17/07 10,735,832 European Investment Bank: 1,032,000,000 Jpn. 5.875%, 11/26/99 14,244,894 1,331,000,000 Jpn. 6.625%, 3/15/00 18,930,564 460,000 U.S. Federal Farm Credit Bank, 5.87%, 6/02/95 459,926 Federal Home Loan Mortgage Corp.: 535,000 U.S. 5.90%, 6/26/95 532,807 1,830,000 U.S. 5.85%, 7/07/95 1,819,240 6,300,000 U.S. Federal National Mortgage Association, 5.88%, 6/26/95 6,274,170 20,480,000 Ger. Federal Republic of Germany, Bundes, 8.00%, 1/21/02 15,732,683 61,750,000 Ger. Federal Republic Germany, Bundeschatweis, 6.875%, 12/02/98 45,633,047 17,260,000 Ger. Federal Republic Germany, Bundesobl, 5.375%, 2/22/99 12,194,943 26,000,000 Aus. Government of Australia, 7.50%, 7/15/05 16,906,086
4 Templeton Global Income Fund, Inc. Investment Portfolio, May 31, 1995 (unaudited) (cont.) - --------------------------------------------------------------------------------
PRINCIPAL IN LOCAL CURRENCY* VALUE - ------------------------------------------------------------------------------- BONDS--GOVERNMENT & GOVERNMENT AGENCIES (CONT.) - ------------------------------------------------------------------------------- Government of Denmark: 49,000,000 Den. 9.00%, 11/15/98 $ 9,332,361 100,150,000 Den. 8.00%, 5/15/03 18,127,476 Government of Italy: 39,500,000,000 Itl. 12.00%, 10/01/95 23,915,334 9,500,000,000 Itl. 12.00%, 1/01/96 5,791,138 13,990,000,000 Itl. 12.00%, 1/01/97 8,559,741 20,750,000,000 Itl. 12.00%, 1/20/98 12,733,744 12,860,000,000 Itl. FRN, 8/01/99 7,847,205 88,000,000 Neth. Government of Netherlands, zero, 1/15/23 7,248,957 3,342,000,000 Sp. Government of Spain, 11.90%, 7/15/96 27,582,422 194,000,000 Swe. Government of Sweden, 6.00%, 2/09/05 19,221,679 International Bank Recon/Dev.: 1,383,000,000 Jpn. 6.75%, 3/15/00 19,776,410 26,330,000 Ger. 7.125%, 4/12/05 18,974,690 93,960,000 Den. Kingdom of Denmark, 8.00%, 11/15/01 17,219,761 10,000,000 U.S. Korea Development Bank, 7.90%, 2/01/02 10,530,700 2,500,000 U.S. Nacional Financiera S N C, 10.625%, 11/22/01 2,137,500 10,000,000 U.S. National Bank of Hungary, 7.95%, 11/01/03 7,775,000 18,900,000 Aus. New South Wales Treasury Corp., 7.00%, 4/01/04 11,823,560 NHA Manulife Pool: 4,200,758 Can. #96405089, 9.125%, 6/01/02 3,149,180 2,351,749 Can. #96405378, 9.25%, 8/01/02 1,774,780 5,261,628 Can. #96405386, 9.25%, 8/01/02 3,924,928 5,000,000 U.S. Philippines Development Bank, 8.00%, 7/22/98 4,975,000 8,000,000 Can. Province of British Columbia, 10.60%, 9/05/20 7,085,539 77,000,000 Can. Province of Ontario, 7.75%, 12/08/03 53,934,577 10,000,000 Aus. Province of Quebec, 9.50%, 10/02/02 7,141,941 46,700,000 Aus. Queensland Treasury Corp., 8.00%, 5/14/03 31,617,626 18,300,000 U.S. Republic of Argentina, 8.375%, 12/20/03 14,182,500 4,000,000 U.S. Republic of Venezuela, 9.00%, 5/27/96 3,840,000 57,000,000 Aus. Treasury Corp. of Victoria, 8.25%, 10/15/03 39,223,413 U.K. Treasury Bonds: 19,263,000 U.K. 7.00%, 8/06/97 30,446,065 20,305,000 U.K. 7.75%, 9/08/06 31,680,255 17,800,000 U.K. 9.00%, 8/06/12 30,940,038 U.S. Treasury Bonds: 5,425,000 U.S. 6.25%, 8/15/23 5,089,301 16,332,000 U.S. 7.625%, 2/15/25 18,358,148 U.S. Treasury Notes: 10,000 U.S. 5.125%, 4/30/98 9,783 21,800,000 U.S. 9.125%, 5/15/99 24,150,258 18,700,000 U.S. 7.75%, 11/30/99 19,924,285
5 Templeton Global Income Fund, Inc. Investment Portfolio, May 31, 1995 (unaudited) (cont.) - --------------------------------------------------------------------------------
PRINCIPAL IN LOCAL CURRENCY* VALUE - ------------------------------------------------------------------------------- BONDS--GOVERNMENT & GOVERNMENT AGENCIES (CONT.) - ------------------------------------------------------------------------------- U.S. Treasury Notes (cont.): 1,757,000 U.S. 7.50%, 11/15/01 $ 1,880,535 6,048,000 U.S. 5.75%, 8/15/03 5,842,912 16,500,000 U.S. 7.25%, 5/15/04 17,523,495 17,950,000 U.S. 11.625%, 11/15/04 24,597,065 18,360,000 U.S. 6.50%, 5/15/05 18,641,092 14,500,000 U.S. Venezuela Front Load Interest Reduction Bond, 6.00%, 3/31/07 7,150,313 ------------ TOTAL BONDS--GOVERNMENT & GOVERNMENT AGENCIES 805,558,247 - ------------------------------------------------------------------------------- INDEXED SECURITIES: 3.1% - ------------------------------------------------------------------------------- 16,700,000 U.S. Caisse Nationale de Credit Agricole, (principal is linked to the difference in the one year Deutschemark swap rate and the one year Sterling swap rate plus 85 basis points times 15), 6.65%, CD, 10/06/95 11,897,080 18,850,000 U.S. Goldman Sachs Group LP, (principal and interest is linked to the change in the Indonesian Rupiah to U.S. Dollar foreign exchange rate between issue date (2,179.25 Rupiah/U.S. Dollar) and maturity date), 14.00%, 6/15/95 18,373,095 ------------ TOTAL INDEXED SECURITIES 30,270,175 - ------------------------------------------------------------------------------- NUMBER OF SHARES** - ------------------------------------------------------------------------------- COMMON STOCK: 0.8% - ------------------------------------------------------------------------------- 355,000 U.S. American Health Properties Inc. 7,632,500 - ------------------------------------------------------------------------------- PREFERRED STOCK: 0.2% - ------------------------------------------------------------------------------- 91,500 Sp. Santander Finance Ltd., B, pfd. 2,150,250 - ------------------------------------------------------------------------------- PRINCIPAL IN LOCAL CURRENCY* - ------------------------------------------------------------------------------- SHORT TERM OBLIGATIONS: 1.3% - ------------------------------------------------------------------------------- 100,000,000 Thai. Bangkok Bank, 11.50%, 5/16/96 4,059,830 107,000,000 Thai. Thailand Military Bank, 6.875%, 6/01/95 4,335,494 3,770,000 U.S. U.S. Treasury Bills, 5.56% to 5.74% with maturities to 9/21/95 3,731,358 ------------ TOTAL SHORT TERM OBLIGATIONS 12,126,682 - ------------------------------------------------------------------------------- TOTAL INVESTMENTS: 99.0% 953,843,285 UNREALIZED LOSS IN FORWARD EXCHANGE CONTRACTS: (0.5)% (5,341,485) OTHER ASSETS, LESS LIABILITIES: 1.5% 14,782,776 ------------ TOTAL NET ASSETS: 100.0% $963,284,576 ============
*CURRENCY OF COUNTRIES INDICATED. **COUNTRY OF ORIGIN. 6 Templeton Global Income Fund, Inc. Financial Highlights, May 31, 1995 (unaudited) - --------------------------------------------------------------------------------
NET ASSET VALUE TOTAL NET ASSETS PER SHARE -------------------------- ----------------- Net Asset Value: Beginning of period, March 1, 1995 $924,601,083 $ 7.68 Net investment income $ 19,109,215 $ 0.16 Distribution from net investment income (18,068,010) (0.15) Net realized and unrealized gain from security transactions 37,642,288 0.31 ------------ -------- Net increase in net asset value 38,683,493 0.32 ------------ ------- End of period, May 31, 1995 $963,284,576 $ 8.00 ============ =======
- --- This report is sent to the shareholders of Templeton Global Income Fund, Inc. for their information. It is not a prospectus, circular, or representation in- tended for use in the purchase or sale of shares of the Fund or of any securi- ties mentioned in the report. 7 Templeton Global Income Fund, Inc. - -------------------------------------------------------------------------------- TRANSFER AGENT Chemical Mellon Shareholder Services Securities Transfer Services 450 West 33rd Street New York, NY 10001 800-526-0801 SHAREHOLDER INFORMATION Weekly comparative net asset value and market price information about Templeton Global Income Fund shares is published each Monday in The Wall Street Journal, weekly in Barron's and each Saturday in The New York Times and other newspapers in a table called "Closed-End Bond Funds." Daily market prices for the Fund's shares are published in the New York Stock Exchange Composite Transactions section of newspapers under the designation "TemplGlob." The Fund's New York Stock Exchange trading symbol is GIM. The Fund's shares are also listed and traded on the Pacific Stock Exchange. For current information about the net asset value or copies of reports, call 1-800-292-9293. For information about dividends and shareholder accounts, call 1-800-526-0801. 8 Notes ----- Notes ----- Notes ----- - ------------------------------------------- TEMPLETON GLOBAL INCOME FUND, INC. 700 Central Avenue St. Petersburg, Florida 33701-3628 Investors should be aware that the value of investments made for the Fund may go up as well as down and that the Investment Manager may make errors in selecting securities for the Fund's portfolio. Like any investment in securities, the Fund's portfolio will be subject to the risk of loss from market, currency, economic, political, and other factors. The Fund and Fund investors are not protected from such losses by the Investment Manager. Therefore, investors who cannot accept the risk of such losses should not invest in shares of the Fund. To ensure the highest quality of service, telephone calls to or from our service departments may be monitored, recorded, and accessed. These calls can be determined by the presence of a regular beeping tone. - ------------------------------------------- (RECYCLED PAPER LOGO APPEARS HERE) TLGIM Q95 5/95 TEMPLETON GLOBAL INCOME FUND, INC. Third Quarter Report May 31, 1995 (LOGO OF FRANKLIN TEMPLETON APPEARS HERE) -----END PRIVACY-ENHANCED MESSAGE-----