FORM N-Q
QUARTERLY SCHEDULE OF PORTFOLIO HOLDINGS OF
REGISTERED MANAGEMENT INVESTMENT COMPANIES
Investment Company Act file number 811-05459
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TEMPLETON GLOBAL INCOME FUND
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(Exact name of registrant as specified in charter)
500 EAST BROWARD BLVD., SUITE 2100, FORT LAUDERDALE, FL 33394-3091
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(Address of principal executive offices) (Zip code)
CRAIG S. TYLE, ONE FRANKLIN PARKWAY, SAN MATEO, CA 94403-1906
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(Name and address of agent for service)
Registrant's telephone number, including area code: (954) 527-7500
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Date of fiscal year end: 08/31
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Date of reporting period: 11/30/06
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ITEM 1. SCHEDULE OF INVESTMENTS.
Templeton Global Income Fund
QUARTERLY STATEMENT OF INVESTMENTS
NOVEMBER 30, 2006
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CONTENTS
Statement of Investments ................................................... 3
Notes to Statement of Investments .......................................... 8
[LOGO](R)
FRANKLIN TEMPLETON
INVESTMENTS
Franklin o TEMPLETON o Mutual Series
Quarterly Statement of Investments | 1
This page intentionally left blank.
Templeton Global Income Fund
STATEMENT OF INVESTMENTS, NOVEMBER 30, 2006 (UNAUDITED)
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PRINCIPAL AMOUNT c VALUE
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LONG TERM INVESTMENTS 94.2%
BONDS 93.1%
ARGENTINA 2.7%
a,b Government of Argentina, FRN, 5.59%, 8/03/12 ...................... 45,600,000 $ 32,059,198
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AUSTRALIA 3.3%
New South Wales Treasury Corp.,
8.00%, 3/01/08 .................................................. 6,200,000 AUD 4,989,528
6.00%, 5/01/12 .................................................. 10,200,000 AUD 8,008,842
Queensland Treasury Corp.,
6.00%, 7/14/09 .................................................. 4,100,000 AUD 3,228,176
6.00%, 8/14/13 .................................................. 29,100,000 AUD 23,069,800
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39,296,346
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BRAZIL 3.6%
Nota Do Tesouro Nacional,
9.762%, 1/01/10 ................................................. 14,000 i BRL 5,984,351
9.762%, 1/01/12 ................................................. 47,500 i BRL 19,388,987
9.762%, 1/01/14 ................................................. 15,000 i BRL 5,902,309
Index Linked, 6.00%, 11/15/09 ................................... 8,700 i BRL 6,055,443
Index Linked, 6.00%, 5/15/15 .................................... 9,400 i BRL 6,050,397
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43,381,487
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CANADA 7.5%
Government of Canada, 7.25%, 6/01/07 .............................. 26,000,000 CAD 23,120,599
Province of Alberta, 5.00%, 12/16/08 .............................. 28,530,000 CAD 25,509,088
Province of British Columbia,
5.25%, 12/01/06 ................................................. 7,815,000 CAD 6,844,456
6.00%, 6/09/08 .................................................. 7,000,000 CAD 6,299,387
Province of Manitoba, 6.375%, 9/01/15 ............................. 14,800,000 NZD 9,947,721
Province of Ontario,
6.125%, 9/12/07 ................................................. 8,255,000 CAD 7,326,331
3.875%, 3/08/08 ................................................. 6,800,000 CAD 5,946,218
6.25%, 6/16/15 .................................................. 8,460,000 NZD 5,606,627
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90,600,427
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GERMANY 4.5%
KfW Bankengruppe,
8.25%, 9/20/07 .................................................. 1,509,000,000 ISK 21,213,815
a FRN, 0.23%, 8/08/11 ............................................. 3,800,000,000 JPY 32,843,560
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54,057,375
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INDONESIA 7.9%
Government of Indonesia,
11.00%, 10/15/14 ................................................ 55,000,000,000 IDR 6,159,159
9.50%, 6/15/15 .................................................. 33,050,000,000 IDR 3,394,536
10.75%, 5/15/16 ................................................. 82,245,000,000 IDR 9,049,894
11.50%, 9/15/19 ................................................. 23,000,000,000 IDR 2,639,496
11.00%, 11/15/20 ................................................ 359,100,000,000 IDR 39,722,349
Quarterly Statement of Investments | 3
Templeton Global Income Fund
STATEMENT OF INVESTMENTS, NOVEMBER 30, 2006 (UNAUDITED) (CONTINUED)
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PRINCIPAL AMOUNT c VALUE
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LONG TERM INVESTMENTS (CONTINUED)
BONDS (CONTINUED)
INDONESIA (CONTINUED)
Indonesia Recapital Bonds,
13.15%, 3/15/10 ................................................. 21,330,000,000 IDR $ 2,546,636
15.425%, 9/15/10 ................................................ 4,800,000,000 IDR 614,525
13.15%, 1/15/12 ................................................. 33,200,000,000 IDR 4,024,730
14.25%, 6/15/13 ................................................. 84,050,000,000 IDR 10,810,469
14.275%, 12/15/13 ............................................... 126,836,000,000 IDR 16,466,902
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95,428,696
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IRAQ 1.1%
d Government of Iraq, Reg S, 5.80%, 1/15/28 ......................... 20,050,000 13,132,750
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MALAYSIA 2.2%
Government of Malaysia,
6.90%, 3/15/07 .................................................. 3,000,000 MYR 837,317
8.60%, 12/01/07 ................................................. 14,085,000 MYR 4,086,674
3.135%, 12/17/07 ................................................ 2,925,000 MYR 806,027
4.305%, 2/27/09 ................................................. 75,200,000 MYR 21,096,895
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26,826,913
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MEXICO 1.0%
Government of Mexico, 10.00%, 12/05/24 ............................ 1,117,000 j MXN 12,260,792
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NEW ZEALAND 1.0%
Government of New Zealand, 6.00%, 11/15/11 ........................ 18,273,000 NZD 12,415,762
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NORWAY 4.5%
Government of Norway, 6.75%, 1/15/07 .............................. 332,407,000 NOK 54,143,471
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PERU 3.4%
Government of Peru,
7.84%, 8/12/20 .................................................. 47,200,000 PEN 16,145,188
Series 7, 8.60%, 8/12/17 ........................................ 61,545,000 PEN 22,050,819
Peru Bond Soberano, 9.91%, 5/05/15 ................................ 6,500,000 PEN 2,466,850
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40,662,857
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PHILIPPINES 0.8%
d Government of the Philippines, Reg S, 9.125%, 2/22/10 ............. 6,570,000 EUR 9,852,806
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POLAND 8.0%
Government of Poland,
8.50%, 5/12/07 .................................................. 68,700,000 PLN 24,269,122
5.75%, 6/24/08 .................................................. 43,900,000 PLN 15,491,340
6.00%, 5/24/09 .................................................. 65,250,000 PLN 23,318,448
5.75%, 9/23/22 .................................................. 90,500,000 PLN 32,940,204
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96,019,114
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SINGAPORE 3.0%
Government of Singapore, 4.00%, 3/01/07 ........................... 55,475,000 SGD 36,105,602
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4 | Quarterly Statement of Investments
Templeton Global Income Fund
STATEMENT OF INVESTMENTS, NOVEMBER 30, 2006 (UNAUDITED) (CONTINUED)
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PRINCIPAL AMOUNT c VALUE
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LONG TERM INVESTMENTS (CONTINUED)
BONDS (CONTINUED)
SLOVAK REPUBLIC 4.6%
Government of Slovakia,
4.80%, 4/14/09 .................................................. 298,100,000 SKK $ 11,213,953
7.50%, 3/13/12 .................................................. 84,000,000 SKK 3,600,017
4.90%, 2/11/14 .................................................. 53,300,000 SKK 2,073,240
5.30%, 5/12/19 .................................................. 50,200,000 SKK 2,066,274
e Strip, 1/14/07 .................................................. 989,000,000 SKK 36,593,662
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55,547,146
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SOUTH KOREA 12.8%
Government of Korea,
6.15%, 7/10/07 .................................................. 10,000,000,000 KRW 10,842,691
5.77%, 10/09/07 ................................................. 39,640,000,000 KRW 42,984,585
6.90%, 1/16/07 .................................................. 41,010,000,000 KRW 44,232,267
4.75%, 3/03/07 .................................................. 3,950,000,000 KRW 4,249,902
4.75%, 3/12/08 .................................................. 8,075,000,000 KRW 8,675,267
4.50%, 9/09/08 .................................................. 12,000,000,000 KRW 12,840,800
4.25%, 9/10/08 .................................................. 27,900,000,000 KRW 29,734,341
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153,559,853
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SUPRANATIONAL f 3.6%
European Investment Bank,
2.125%, 9/20/07 ................................................. 1,600,000,000 JPY 13,990,153
a senior note, FRN, 0.33%, 9/21/11 ................................ 2,000,000,000 JPY 17,279,174
Inter-American Development Bank,
9.00%, 1/04/07 .................................................. 560,000,000 ISK 8,154,148
6.00%, 12/15/17 ................................................. 6,000,000 NZD 3,961,308
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43,384,783
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SWEDEN 8.2%
Government of Sweden,
8.00%, 8/15/07 .................................................. 554,665,000 SEK 83,559,249
6.50%, 5/05/08 .................................................. 100,400,000 SEK 15,264,306
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98,823,555
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THAILAND 6.0%
Bank of Thailand Bond, 3.25%, 5/19/07 ............................. 407,690,000 THB 11,281,218
Government of Thailand,
8.00%, 12/08/06 ................................................. 1,453,680,000 THB 40,506,624
5.60%, 7/07/07 .................................................. 499,730,000 THB 13,988,417
4.125%, 2/12/08 ................................................. 178,700,000 THB 4,942,637
8.50%, 12/08/08 ................................................. 31,000,000 THB 925,874
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71,644,770
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UNITED STATES 3.4%
Federal National Mortgage Association,
2.125%, 10/09/07 ................................................ 4,020,000,000 JPY 35,187,310
1.75%, 3/26/08 .................................................. 660,000,000 JPY 5,782,562
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40,969,872
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TOTAL BONDS (COST $1,011,930,432) ................................. 1,120,173,575
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Quarterly Statement of Investments | 5
Templeton Global Income Fund
STATEMENT OF INVESTMENTS, NOVEMBER 30, 2006 (UNAUDITED) (CONTINUED)
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PRINCIPAL AMOUNT c VALUE
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LONG TERM INVESTMENTS (CONTINUED)
WARRANTS (COST $9,600,575) 1.1%
ARGENTINA
g Government of Argentina, wts., 12/15/35 ........................... 63,200,000 $ 7,773,916
g Government of Argentina, wts., 12/15/35 ........................... 30,370,000 EUR 4,835,021
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12,608,937
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TOTAL LONG TERM INVESTMENTS (COST $1,021,531,007) ................. $ 1,132,782,512
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SHORT TERM INVESTMENTS 3.3%
GOVERNMENT AND AGENCY SECURITIES 3.3%
EGYPT 2.4%
e Egypt Treasury Bills, 12/05/06 - 11/20/07 ......................... 172,300,000 EGP 28,352,638
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SWEDEN 0.4%
e Swedish Treasury Bill, 12/19/07 ................................... 31,580,000 SEK 4,455,230
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THAILAND 0.5%
e Thailand Treasury Bills, 4/05/07 - 5/03/07 ........................ 235,640,000 THB 6,418,917
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TOTAL SHORT TERM INVESTMENTS (COST $38,676,357) ................... 39,226,785
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TOTAL INVESTMENTS (COST $1,060,207,364) 97.5% ..................... 1,172,009,297
NET UNREALIZED LOSS ON FORWARD EXCHANGE CONTRACTS (0.0)% h ........ (616,533)
OTHER ASSETS, LESS LIABILITIES 2.5% ............................... 30,446,941
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NET ASSETS 100.0% ................................................. $ 1,201,839,705
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6 | Quarterly Statement of Investments
Templeton Global Income Fund
STATEMENT OF INVESTMENTS, NOVEMBER 30, 2006 (UNAUDITED) (CONTINUED)
CURRENCY ABBREVIATIONS
AUD - Australian Dollar
BRL - Brazil Real
CAD - Canadian Dollar
EGP - Egyptian Pound
EUR - Euro
IDR - Indonesian Rupiah
ISK - Iceland Krona
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
SGD - Singapore Dollar
SKK - Slovak Koruna
THB - Thailand Baht
SELECTED PORTFOLIO ABBREVIATION
FRN - Floating Rate Note
a The coupon rate shown represents the rate at period end.
b The principal amount is stated in original face, and scheduled paydowns
are reflected in the market price on ex-date.
c The principal amount is stated in U.S. dollars unless otherwise indicated.
d 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 November 30, 2006, the
aggregate value of these securities was $22,985,556, representing 1.91% of
net assets.
e The security is traded on a discount basis with no stated coupon rate.
f A supranational organization is an entity formed by two or more central
governments through international treaties.
g Warrants are linked to the Argentine Republic Gross Domestic Product (GDP)
and do not pay principal over life of security or at expiration. Warrants
entitle the holder to receive only variable income payments, subject to
certain conditions, which are based on growth of the Argentine GDP and the
principal or "notional" value of these GDP linked warrants.
h Rounds to less than 0.1% of net assets.
i Principal is stated in 100 Real units.
j Principal is stated in 100 Peso units.
Quarterly Statement of Investments | See Notes to Statement of Investments. | 7
Templeton Global Income Fund
NOTES TO STATEMENT OF INVESTMENTS (UNAUDITED)
Templeton Global Income Fund (the Fund) is registered under the Investment
Company Act of 1940 as a non-diversified, closed-end investment company.
1. INCOME TAXES
At November 30, 2006, the cost of investments and net unrealized appreciation
(depreciation) for income tax purposes were as follows:
Cost of investments .......................................... $1,085,242,560
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Unrealized appreciation ...................................... $ 91,161,189
Unrealized depreciation ...................................... (4,394,452)
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Net unrealized appreciation (depreciation) ................... $ 86,766,737
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2. FORWARD EXCHANGE CONTRACTS
At November 30, 2006, the Fund had the following forward exchange contracts
outstanding:
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CONTRACT SETTLEMENT UNREALIZED
CONTRACTS TO BUY AMOUNT a DATE GAIN (LOSS)
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2,950,000,000 Korean Won ............ 4,130,154 NZD 12/06/06 $ 350,351
117,100,000 Thailand Baht ......... 4,104,092 NZD 12/06/06 456,017
7,000,000 Brazilian Real ........ 2,941,794 1/04/07 270,111
7,434,000 Brazilian Real ........ 2,950,000 2/28/07 428,170
5,394,000 Romania Leu ........... 1,450,000 EUR 3/28/07 133,498
21,335,300 Romania Leu ........... 5,800,000 EUR 4/23/07 415,751
1,350,000,000 Japanese Yen .......... 11,677,322 7/17/07 330,573
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$ 2,384,471
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CONTRACT SETTLEMENT UNREALIZED
CONTRACTS TO SELL AMOUNT a DATE GAIN (LOSS)
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52,217,395 Mexican Peso .......... 2,562,829,758 CLP 8/16/07 $ 166,320
36,225,716 Mexican Peso .......... 1,767,670,025 CLP 8/20/07 96,479
29,507,162 Mexican Peso .......... 1,414,986,459 CLP 9/12/07 34,446
11,063,812 Mexican Peso .......... 527,411,931 CLP 9/14/07 7,068
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304,313
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UNREALIZED GAIN ON FORWARD EXCHANGE CONTRACTS ............. $ 2,688,784
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8 | Quarterly Statement of Investments
Templeton Global Income Fund
NOTES TO STATEMENT OF INVESTMENTS (UNAUDITED) (CONTINUED)
2. FORWARD EXCHANGE CONTRACTS (CONTINUED)
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CONTRACT SETTLEMENT UNREALIZED
CONTRACTS TO BUY AMOUNT a DATE GAIN (LOSS)
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1,937,371,200 Japanese Yen .......... 17,700,000 2/09/07 $ (800,427)
1,280,000,000 Japanese Yen .......... 11,949,216 2/13/07 (778,447)
228,082,050 Japanese Yen .......... 2,135,000 2/22/07 (142,320)
543,250,000 Japanese Yen .......... 5,000,000 3/05/07 (247,355)
225,000,000 Indian Rupee .......... 7,995,736 NZD 3/21/07 (421,133)
128,800,000 Japanese Yen .......... 1,150,000 4/19/07 (16,765)
345,000,000 Japanese Yen .......... 3,077,060 6/27/07 (15,656)
223,340,000 Japanese Yen .......... 2,000,000 9/04/07 (1,999)
407,775,000 Indian Rupee .......... 13,626,865 NZD 10/29/07 (141,579)
285,000,000 Indian Rupee .......... 9,773,663 NZD 10/30/07 (265,774)
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$ (2,831,455)
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CONTRACT SETTLEMENT UNREALIZED
CONTRACTS TO SELL AMOUNT a DATE GAIN (LOSS)
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117,100,000 Thailand Baht ......... 4,710,378 NZD 12/06/06 $ (41,413)
2,470,410 Euro .................. 348,994,821 JPY 3/06/07 (232,317)
16,563,648 New Zealand Dollar .... 495,418,717 INR 7/27/07 (200,132)
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(473,862)
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UNREALIZED LOSS ON FORWARD EXCHANGE CONTRACTS ............. (3,305,317)
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NET UNREALIZED GAIN (LOSS) ON FORWARD EXCHANGE CONTRACTS . $ (616,533)
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a In U.S. Dollar unless otherwise indicated.
CURRENCY ABBREVIATIONS
CLP - Chilean Peso
EUR - Euro
JPY - Japanese Yen
INR - Indian Rupee
NZD - New Zealand Dollar
For information on the Fund's policy regarding valuation of investments and
other significant accounting policies, please refer to the Fund's most recent
semiannual or annual shareholder report.
Quarterly Statement of Investments | 9
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) Certifications pursuant to Section 30a-2 of the Investment Company Act of
1940 of Jimmy D. Gambill, Chief Executive Officer - Finance and Administration,
and Galen G. Vetter, Chief Financial 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/JIMMY D. GAMBILL
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Jimmy D. Gambill
Chief Executive Officer -
Finance and Administration
Date January 25, 2007
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/JIMMY D. GAMBILL
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Jimmy D. Gambill
Chief Executive Officer -
Finance and Administration
Date January 25, 2007
By /s/GALEN G. VETTER
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Galen G. Vetter
Chief Financial Officer
Date January 25, 2007