-----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, U/KZWdtunHbtllg+kATi3E9j239fish4Ap+cEdMxE08AYBP+H3dGap91vBg6T2Hc kB7v9Rq198Ddq8vYgpSpag== 0000950109-96-000337.txt : 19960125 0000950109-96-000337.hdr.sgml : 19960125 ACCESSION NUMBER: 0000950109-96-000337 CONFORMED SUBMISSION TYPE: N-30B-2 PUBLIC DOCUMENT COUNT: 1 CONFORMED PERIOD OF REPORT: 19951130 FILED AS OF DATE: 19960124 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: 96506501 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: The Templeton Global Income Fund 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. January 16, 1996 Dear Shareholder: This report for the quarter ended November 30, 1995, includes your Fund's long- term performance, a listing of investments, and a brief commentary from the Fund's manager regarding the investment environment. It is one of four reports you will receive during the Fund's fiscal year. Next quarter, you'll receive the semi-annual report covering the six months ended February 29, 1996. The semi-annual report provides a more comprehensive discussion of the financial markets and their impact on the Fund, a summary of the Fund's performance, and an in-depth manager's discussion and analysis. Also included are the Fund's unaudited financial statements and complete 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. TEMPLETON GLOBAL INCOME FUND Cumulative Total Returns* Periods ended 11/30/95
Since Inception One-Year Five-Year (11/22/88) Based on change in net asset value 14.51% 47.39% 82.20% Based on change in market price 13.68% 34.02% 47.77%
*Cumulative total return calculations show the change in value of an investment over the periods indicated. These calculations assume reinvestment of all distributions and capital gains, either at net asset value or at market price on the reinvestment date in accordance with the dividend reinvestment plan. Investments in foreign securities involve special risks, such as market and currency volatility and adverse economic, social and political developments in the countries where the fund is invested. Developing markets involve heightened risks related to the same factors, in addition to risks associated with the relatively small size and lesser liquidity of these markets. Past performance is not predictive of future results. 1 Manager's Discussion One of the most important financial events of the twentieth century is approaching its final stages. Planning initiated by the founders of the European Economic Community in the early 1950s is likely to culminate in a common European currency in the next five to ten years. For the average American, the novelty of a European common currency masks the wrenching structural transformations that have taken place in the European economic framework, which have made such a currency possible. Probably the most important developments have taken place in government finance. As Americans, we are well aware of the ongoing debate about social spending in the United States, but Europe is the real home of the modern welfare state. In the 1950s and 1960s, European workers enjoyed unemployment compensation nearly equal to full working salaries, as well as pensions guaranteed by the government at early retirement ages. By the mid-1980s, such conditions had fostered low economic growth, high unemployment, large fiscal deficits, and weak currencies - -- an environment the financial markets termed "Eurosclerosis." In the late 1980s, however, attitudes began to change. The opening of European financial markets to foreign capital flows forced European governments to compete for capital, and it became clear that only through reform, such as a common currency, could they continue to attract foreign investment. However, membership in a common currency union was to be allowed only if countries met stringent criteria concerning low inflation and healthy government finances. By 1995, many European countries were experiencing slow economic growth, lower interest rates, and stable inflation -- a climate conducive to investing. Although some countries lag behind others, in our opinion these weaker countries will make whatever reforms are necessary in order to participate in the positive economic environment enjoyed by the European leaders. We shall therefore continue to monitor all European markets in the belief that they will provide investment opportunities for our shareholders in the years to come. Sincerely, /s/ Neil S. Devlin Neil S. Devlin Portfolio Manager Templeton Global Income Fund, Inc. 2 Templeton Global Income Fund, Inc. Investment Portfolio, November 30, 1995 (unaudited) - --------------------------------------------------------------------------------
PRINCIPAL IN LOCAL CURRENCY* VALUE - ------------------------------------------------------------------------------- BONDS--CORPORATE: 7.6% - ------------------------------------------------------------------------------- 4,250,000 U.S. Bombril SA, 8.00%, 8/26/98 $ 3,771,875 10,000,000 Can. British Petroleum Co. PLC, 10.875%, 8/01/01 8,461,850 5,750,000 U.S. Companhia Suzano Papel, 10.25%, 10/06/01 5,462,500 5,101,180 U.S. Electricidad de Caracas, FRN, 9/30/03 2,110,613 4,750,000 U.S. Empresa Colombiana de Petroleos, 7.25%, 7/08/98 4,738,125 7,700,000 U.S. Essar Gujarat Ltd., 8.40%, 7/15/99, 144a 7,671,125 2,500,000 U.S. Henderson Capital International Ltd., 4.25%, 10/27/96 2,537,500 2,000,000 U.S. Hidroelectrica Alicura SA, 8.375%, 3/15/99, 144a 1,770,000 4,750,000 U.S. Klabin Fabricadora de Papel Celulose SA, 11.00%, 4/15/98, 144a 4,750,000 10,700,000 Aus. News America Holdings, 8.625%, 02/07/14 7,026,431 5,000,000 U.S. Pohang Iron & Steel, 6.625%, 7/01/03 5,018,850 5,000,000 U.S. Quantas Airways Ltd., 7.50%, 6/30/03 5,187,400 8,000,000 U.S. Telecom Argentina Stet-France SA, 8.375%, 10/18/00, 144a 7,265,000 3,000,000 U.S. Telecom Brasileiras, 10.375%, 9/09/97 3,056,250 7,500,000 U.S. Telefonica de Argentina SA, 8.375%, 10/01/00, 144a 6,750,000 ------------ TOTAL BONDS--CORPORATE 75,577,519 - ------------------------------------------------------------------------------- BONDS--GOVERNMENT & GOVERNMENT AGENCIES: 86.2% - ------------------------------------------------------------------------------- 9,000,000 Ger. Bank Foreign Economic Affairs Russia, 7.50%, 9/27/96 6,145,909 3,000,000 U.S. Bocon Previsionales II, FRN, 4/01/01 2,684,250 Buoni Poliennali del Tes: 19,775,000,000 Itl. 8.50%, 8/01/99 11,478,311 12,730,000,000 Itl. 10.50%, 9/01/05 7,651,206 23,790,000 Ger. Deutsche Bundespost, 7.75%, 10/01/04 17,917,540 14,300,000 Aus. Eurofima, 9.875%, 1/17/07 11,386,787 20,480,000 Ger. Federal Republic of Germany, Bundes, 8.00%, 1/21/02 15,836,621 19,120,000 Ger. Federal Republic of Germany, Unity, 8.75%, 8/20/01 15,303,138 Government of Denmark: 49,000,000 Den. 9.00%, 11/15/98 9,467,648 100,150,000 Den. 8.00%, 5/15/03 18,807,285 Government of France: 108,156,000 Fr. 8.50%, 3/28/00 23,587,270 101,936,000 Fr. 9.50%, 1/25/01 23,276,547 107,990,000 Fr. 9.50%, 1/25/01 23,098,829 Government of Italy: 9,500,000,000 Itl. 12.00%, 1/01/96 5,912,008 13,990,000,000 Itl. 12.00%, 1/01/97 8,844,348 20,750,000,000 Itl. 12.00%, 1/20/98 13,296,910 12,860,000,000 Itl. FRN, 8/01/99 8,103,452 31,460,000,000 Itl. 10.50%, 7/15/00 19,387,374
3 Templeton Global Income Fund, Inc. Investment Portfolio, November 30, 1995 (unaudited) (cont.) - --------------------------------------------------------------------------------
PRINCIPAL IN LOCAL CURRENCY* VALUE - ------------------------------------------------------------------------- BONDS--GOVERNMENT & GOVERNMENT AGENCIES (CONT.) - ------------------------------------------------------------------------- Government of New Zealand: 15,255,000 N.Z. 6.50%, 2/15/00 $ 9,719,579 145,000 N.Z. 10.00%, 3/15/02 108,618 13,950,000 N.Z. 8.00%, 4/15/04 9,669,329 Government of Spain: 3,342,000,000 Sp. 11.90%, 7/15/96 27,434,470 2,156,680,000 Sp. 12.25%, 3/25/00 18,906,273 1,872,700,000 Sp. 11.30%, 1/15/02 16,039,993 1,358,400,000 Sp. 10.00%, 2/28/05 10,848,023 26,330,000 Ger. International Bank Recon/Dev., 7.125%, 4/12/05 19,403,687 94,078,000 Den. Kingdom of Denmark, 8.00%, 11/15/01 17,876,919 Kingdom of Sweden: 80,800,000 Swe. 10.25%, 5/05/03 13,386,664 37,200,000 Swe. 9.00%, 4/20/09 5,752,813 10,000,000 U.S. Korea Development Bank, 7.90%, 2/01/02 10,790,700 2,500,000 U.S. Nacional Financiera SNC, 10.625%, 11/22/01 2,343,750 10,000,000 U.S. National Bank of Hungary, 7.95%, 11/01/03 9,087,500 New South Wales Treasury Corp.: 10,100,000 Aus. 12.00%, 12/01/01, 144a 8,914,600 18,900,000 Aus. 7.00%, 4/01/04 12,932,254 NHA Manulife: 3,871,085 Can. #96405089, 9.125%, 6/01/02 3,007,931 2,128,538 Can. #96405378, 9.25%, 8/01/02 1,642,208 4,690,654 Can. #96405386, 9.25%, 8/01/02 3,605,877 5,000,000 U.S. Philippines Development Bank, 8.00%, 7/22/98 5,081,250 77,000,000 Can. Providence of Ontario, 7.75%, 12/08/03 58,093,636 8,000,000 Can. Province of British Columbia, 10.60%, 9/05/20 7,476,168 10,000,000 Aus. Province of Quebec, 9.50%, 10/02/02 7,590,612 46,700,000 Aus. Queensland Treasury Corp., 8.00%, 5/14/03 34,194,334 18,300,000 U.S. Republic of Argentina, 8.375%, 12/20/03 14,502,750 Thailand Military Bank: 90,000,000 Thai. 11.125%, 6/03/96 3,552,782 58,000,000 Thai. 11.00%, 6/05/96 2,293,720 57,000,000 Aus. Treasury Corp. of Victoria, 8.25%, 10/15/03 42,144,087 United Kingdom: 5,775,000 U.K. 9.50%, 1/15/99 9,523,650 13,625,000 U.K. 6.75%, 11/26/04 19,797,414 U.S. Treasury Bonds: 21,030,000 U.S. 10.75%, 5/15/03 27,365,288 5,425,000 U.S. 6.25%, 8/15/23 5,426,682 22,374,000 U.S. 7.625%, 2/15/25 26,614,544
4 Templeton Global Income Fund, Inc. Investment Portfolio, November 30, 1995 (unaudited) (cont.) - --------------------------------------------------------------------------------
PRINCIPAL IN LOCAL CURRENCY* VALUE - ------------------------------------------------------------------------- BONDS--GOVERNMENT & GOVERNMENT AGENCIES (CONT.) - ------------------------------------------------------------------------- U.S. Treasury Notes: 10,000 U.S. 5.125%, 4/30/98 $ 9,938 16,800,000 U.S. 9.125%, 5/15/99 18,687,312 19,265,000 U.S. 8.00%, 8/15/99 20,845,308 3,827,000 U.S. 7.75%, 12/31/99 4,133,160 6,048,000 U.S. 5.75%, 8/15/03 6,056,528 11,500,000 U.S. 7.25%, 5/15/04 12,623,090 17,950,000 U.S. 11.625%, 11/15/04 25,172,003 29,980,000 U.S. 6.50% 05/15/05 31,539,859 21,000,000 U.S. United Mexican States, 11.1875%, FRN, 7/20/97, 144a 21,288,750 14,500,000 U.S. Venezuela Front Load Interest Reduction Bond, 6.00%, 3/31/07 6,833,125 ------------ TOTAL BONDS--GOVERNMENT & GOVERNMENT AGENCIES 854,502,613 - ------------------------------------------------------------------------- NUMBER OF SHARES** - ------------------------------------------------------------------------- COMMON STOCK: 0.7% - ------------------------------------------------------------------------- 355,000 U.S. American Health Properties Inc. 7,055,625 - ------------------------------------------------------------------------- PREFERRED STOCKS: 0.3% - ------------------------------------------------------------------------- 35,500 U.S. American Health Properties Psychiatric Group, pfd. 505,875 91,500 Sp. Santander Finance Ltd., B, pfd. 2,276,062 ------------ TOTAL PREFERRED STOCKS 2,781,937 - ------------------------------------------------------------------------- PRINCIPAL IN LOCAL CURRENCY* - ------------------------------------------------------------------------- SHORT TERM OBLIGATIONS: 3.5% - ------------------------------------------------------------------------- 100,000,000 Thai. Bangkok Bank, 11.50%, 5/16/96 3,962,170 3,730,000 U.S. Federal Farm Credit Banks, 5.66%, 12/15/95 3,721,719 940,000 U.S. Federal Home Loan Bank, 5.59%, 1/12/96 933,824 1,235,000 U.S. Federal National Mortgage Assn., 5.58%, 12/5/95 1,234,222 77,000,000 Swe. Sweden Treasury Bill, 8.68%, 11/20/96 10,746,465 13,910,000 U.S. U.S. Treasury Bills, 5.15% to 5.63% with maturities to 1/25/96 13,859,699 ------------ TOTAL SHORT TERM OBLIGATIONS 34,458,099 - ------------------------------------------------------------------------- TOTAL INVESTMENTS: 98.3% 974,375,793 UNREALIZED GAIN IN FORWARD EXCHANGE CONTRACTS: 0.1% 716,826 OTHER ASSETS, LESS LIABILITIES: 1.6% 15,768,837 ------------ TOTAL NET ASSETS: 100.0% $990,861,456 ============
*CURRENCY OF COUNTRIES INDICATED. **COUNTRY OF ORIGIN. 5 Templeton Global Income Fund, Inc. Financial Highlights, November 30, 1995 (unaudited) - --------------------------------------------------------------------------------
NET ASSET VALUE TOTAL NET ASSETS PER SHARE -------------------------- ---------------- Net Asset Value: Beginning of period, September 1, 1995 $964,012,755 $ 8.00 Net investment income $ 17,955,030 $ .15 Distribution from net investment income (18,068,010) (.15) Net realized and unrealized gain from security transactions 26,961,681 .23 ------------ ------- Net increase in net asset value 26,848,701 .23 ------------ ------- End of period, November 30, 1995 $990,861,456 $ 8.23 ============ =======
- --- This report is sent to the shareholders of Templeton Global Income Fund for their information. It is not a prospectus, circular, or representation intended for use in the purchase or sale of shares of the Fund or of any securities men- tioned in the report. 6 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 01/96 TEMPLETON GLOBAL INCOME FUND, INC. First Quarter Report November 30, 1995 [LOGO OF FRANKLIN TEMPLETON APPEARS HERE] - -------------------------------------------------------------------------------- -----END PRIVACY-ENHANCED MESSAGE-----