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: 5/31/06
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ITEM 1. SCHEDULE OF INVESTMENTS.
Templeton Global Income Fund
QUARTERLY STATEMENT OF INVESTMENTS
MAY 31, 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, MAY 31, 2006 (UNAUDITED)
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PRINCIPAL AMOUNT c VALUE
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BONDS 91.6%
ARGENTINA 3.2%
a,b Government of Argentina, FRN, 4.889%, 8/03/12 ............................ 45,600,000 $ 36,891,301
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AUSTRALIA 5.0%
New South Wales Treasury Corp.,
8.00%, 3/01/08 ......................................................... 6,200,000 AUD 4,825,392
6.00%, 5/01/12 ......................................................... 10,200,000 AUD 7,697,477
Queensland Treasury Corp.,
6.00%, 7/14/09 ......................................................... 4,100,000 AUD 3,103,790
6.00%, 8/14/13 ......................................................... 56,500,000 AUD 42,866,710
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58,493,369
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AUSTRIA 1.3%
Government of Austria,
9.00%, 9/15/06 ......................................................... 865,000,000 ISK 11,910,538
5.50%, 10/20/07 ........................................................ 2,360,000 EUR 3,111,261
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15,021,799
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BELGIUM 0.2%
Government of Belgium, 8.50%, 10/01/07 ................................... 1,993,000 EUR 2,722,867
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CANADA 6.8%
Government of Canada, 7.25%, 6/01/07 ..................................... 27,600,000 CAD 25,793,341
Province of Alberta, 5.00%, 12/16/08 ..................................... 28,530,000 CAD 26,308,236
Province of British Columbia,
5.25%, 12/01/06 ........................................................ 7,815,000 CAD 7,130,886
6.00%, 6/09/08 ......................................................... 7,000,000 CAD 6,560,926
Province of Ontario,
7.75%, 7/24/06 ......................................................... 8,610,000 CAD 7,858,404
3.50%, 9/08/06 ......................................................... 6,780,000 CAD 6,145,045
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79,796,838
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FINLAND 0.2%
Government of Finland, 5.00%, 7/04/07 .................................... 2,090,000 EUR 2,728,998
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FRANCE 0.2%
Government of France, 4.25%, 4/25/19 ..................................... 2,250,000 EUR 2,927,656
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GERMANY 2.0%
Government of Germany, 2.75%, 6/23/06 .................................... 295,000 EUR 377,913
KfW Bankengruppe,
8.25%, 9/20/07 ......................................................... 609,000,000 ISK 8,157,878
senior note, 6.375%, 2/17/15 ........................................... 22,950,000 NZD 14,433,564
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22,969,355
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ICELAND 0.6%
Inter-American Development Bank, 9.00%, 1/04/07 .......................... 560,000,000 ISK 7,583,374
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INDONESIA 7.4%
Government of Indonesia,
11.00%, 10/15/14 ....................................................... 55,000,000,000 IDR 5,541,597
9.50%, 6/15/15 ......................................................... 33,050,000,000 IDR 3,035,385
10.75%, 5/15/16 ........................................................ 82,245,000,000 IDR 8,097,867
11.50%, 9/15/19 ........................................................ 23,000,000,000 IDR 2,395,057
11.00%, 11/15/20 ....................................................... 359,100,000,000 IDR 35,172,804
Quarterly Statement of Investments | 3
Templeton Global Income Fund
STATEMENT OF INVESTMENTS, MAY 31, 2006 (UNAUDITED) (CONTINUED)
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PRINCIPAL AMOUNT c VALUE
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BONDS (CONTINUED)
INDONESIA (CONTINUED)
Indonesia Recapital Bonds,
13.15%, 3/15/10 ........................................................ 21,330,000,000 IDR $ 2,388,245
15.425%, 9/15/10 ....................................................... 4,800,000,000 IDR 575,689
13.15%, 1/15/12 ........................................................ 33,200,000,000 IDR 3,732,918
14.25%, 6/15/13 ........................................................ 84,050,000,000 IDR 9,944,325
14.275%, 12/15/13 ...................................................... 126,836,000,000 IDR 15,006,525
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85,890,412
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IRISH REPUBLIC 0.4%
Government of Ireland, 4.25%, 10/18/07 ................................... 3,400,000 EUR 4,412,060
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JAPAN 1.7%
European Investment Bank,
3.00%, 9/20/06 ......................................................... 1,280,000,000 JPY 11,470,255
2.125%, 9/20/07 ........................................................ 950,000,000 JPY 8,643,038
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20,113,293
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MALAYSIA 2.3%
Government of Malaysia,
6.90%, 3/15/07 ......................................................... 3,000,000 MYR 846,028
8.60%, 12/01/07 ........................................................ 6,885,000 MYR 2,017,559
3.135%, 12/17/07 ....................................................... 2,925,000 MYR 794,017
4.305%, 2/27/09 ........................................................ 75,200,000 MYR 20,674,305
4.032%, 9/15/09 ........................................................ 7,715,000 MYR 2,103,080
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26,434,989
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NETHERLANDS 0.1%
Government of the Netherlands, 5.75%, 2/15/07 ............................ 800,000 EUR 1,043,437
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NEW ZEALAND 1.3%
Government of New Zealand, 6.00%, 11/15/11 ............................... 18,273,000 NZD 11,672,715
Inter-American Development Bank, 6.00%, 12/15/17 ......................... 6,000,000 NZD 3,668,759
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15,341,474
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NORWAY 4.8%
Government of Norway, 6.75%, 1/15/07 ..................................... 332,407,000 NOK 55,827,878
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PERU 5.0%
Government of Peru,
9.91%, 5/05/15 ......................................................... 6,500,000 PEN 2,251,969
7.84%, 8/12/20 ......................................................... 47,200,000 PEN 14,148,144
7.35%, 7/21/25 ......................................................... 16,300,000 15,892,500
8.75%, 11/21/33 ........................................................ 5,630,000 6,263,375
Series 7, 8.60%, 8/12/17 ............................................... 61,545,000 PEN 19,854,294
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58,410,282
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PHILIPPINES 2.0%
Government of the Philippines,
9.00%, 2/15/13 ......................................................... 5,500,000 6,050,000
d Reg S, 9.125%, 2/22/10 ................................................. 12,170,000 EUR 17,723,555
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23,773,555
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4 | Quarterly Statement of Investments
Templeton Global Income Fund
STATEMENT OF INVESTMENTS, MAY 31, 2006 (UNAUDITED) (CONTINUED)
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PRINCIPAL AMOUNT c VALUE
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BONDS (CONTINUED)
POLAND 8.1%
Government of Poland,
8.50%, 11/12/06 ........................................................ 100,860,000 PLN $ 33,492,018
8.50%, 5/12/07 ......................................................... 68,700,000 PLN 23,229,027
6.00%, 5/24/09 ......................................................... 65,250,000 PLN 22,017,496
6.25%, 10/24/15 ........................................................ 12,550,000 PLN 4,361,365
5.75%, 9/23/22 ......................................................... 34,200,000 PLN 11,517,950
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94,617,856
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SINGAPORE 3.6%
Government of Singapore,
1.75%, 2/01/07 ......................................................... 9,850,000 SGD 6,200,223
4.00%, 3/01/07 ......................................................... 55,475,000 SGD 35,472,806
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41,673,029
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SLOVAK REPUBLIC 4.8%
Government of Slovakia,
4.80%, 4/14/09 ......................................................... 298,100,000 SKK 10,196,028
7.50%, 3/13/12 ......................................................... 84,000,000 SKK 3,281,655
4.90%, 2/11/14 ......................................................... 53,300,000 SKK 1,848,368
5.30%, 5/12/19 ......................................................... 50,200,000 SKK 1,814,642
e Strip, 1/14/07 ......................................................... 1,189,000,000 SKK 39,323,929
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56,464,622
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SOUTH AFRICA 0.2%
Government of South Africa, 5.25%, 5/16/13 ............................... 2,000,000 EUR 2,659,271
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SOUTH KOREA 15.9%
Government of Korea,
6.90%, 1/16/07 ......................................................... 41,010,000,000 KRW 44,008,323
4.75%, 3/03/07 ......................................................... 7,900,000,000 KRW 8,367,768
6.15%, 7/10/07 ......................................................... 10,000,000,000 KRW 10,752,162
3.75%, 9/10/07 ......................................................... 28,100,000,000 KRW 29,392,504
5.77%, 10/09/07 ........................................................ 39,640,000,000 KRW 42,530,822
4.75%, 3/12/08 ......................................................... 8,075,000,000 KRW 8,545,138
4.50%, 9/09/08 ......................................................... 12,000,000,000 KRW 12,629,070
4.25%, 9/10/08 ......................................................... 27,900,000,000 KRW 29,205,168
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185,430,955
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SWEDEN 8.7%
Government of Sweden,
8.00%, 8/15/07 ......................................................... 554,665,000 SEK 81,436,320
6.50%, 5/05/08 ......................................................... 100,400,000 SEK 14,776,924
e Strip, 9/20/06 ......................................................... 39,400,000 SEK 5,410,220
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101,623,464
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Quarterly Statement of Investments | 5
Templeton Global Income Fund
STATEMENT OF INVESTMENTS, MAY 31, 2006 (UNAUDITED) (CONTINUED)
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PRINCIPAL AMOUNT c VALUE
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BONDS (CONTINUED)
THAILAND 5.8%
Bank of Thailand Bond, 3.25%, 5/19/07 .................................... 407,690,000 THB $ 10,500,132
Government of Thailand,
8.00%, 12/08/06 ........................................................ 1,453,680,000 THB 38,715,385
5.60%, 7/07/07 ......................................................... 499,730,000 THB 13,169,285
4.125%, 2/12/08 ........................................................ 178,700,000 THB 4,599,096
8.50%, 12/08/08 ........................................................ 31,000,000 THB 875,632
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67,859,530
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TOTAL BONDS (COST $990,038,563) .......................................... 1,070,711,664
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SHARES/PRINCIPAL
AMOUNT c
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SHORT TERM INVESTMENTS 6.0%
GOVERNMENT AND AGENCY SECURITIES 6.0%
CANADA 1.0%
e Canada Treasury Bill, 11/30/06 ........................................... 13,700,000 CAD 12,175,127
EGYPT 1.5%
e Egypt Treasury Bills, 6/20/06 - 1/16/07 .................................. 98,350,000 EGP 16,643,479
THAILAND 0.5%
e Thailand Treasury Bills, 4/05/07 - 5/03/07 ............................... 235,640,000 THB 5,912,539
UNITED STATES 3.0%
e Federal National Mortgage Association, 2.125%, 10/09/07 .................. 3,900,000,000 JPY 35,371,398
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TOTAL GOVERNMENT AND AGENCY SECURITIES (COST $34,272,735) ................ 70,102,543
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MONEY MARKET FUND (COST $2,411) 0.0% f
UNITED STATES 0.0% f
g Franklin Institutional Fiduciary Trust Money Market Portfolio, 4.71% ..... 2,411 2,411
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TOTAL SHORT TERM INVESTMENTS (COST $70,307,765) .......................... 70,104,954
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TOTAL INVESTMENTS (COST $1,060,346,328) 97.6% ............................ 1,140,816,618
NET UNREALIZED GAIN ON FORWARD EXCHANGE CONTRACTS 0.3% ................... 3,649,387
OTHER ASSETS, LESS LIABILITIES 2.1% ...................................... 23,981,602
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NET ASSETS 100.0% ........................................................ $1,168,447,607
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6 | Quarterly Statement of Investments
Templeton Global Income Fund
STATEMENT OF INVESTMENTS, MAY 31, 2006 (UNAUDITED) (CONTINUED)
CURRENCY ABBREVIATIONS
AUD - Australian Dollar
CAD - Canadian Dollar
EGP - Egyptian Pound
EUR - Euro
IDR - Indonesian Rupiah
ISK - Iceland Krona
JPY - Japanese Yen
KRW - Korean Won
MYR - Malaysian Ringgit
NOK - Norwegian Krone
NZD - New Zealand Dollar
PEN - Peru 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 May 31, 2006, the value of
this security was $17,723,555, representing 1.52% of net assets.
e The security is traded on a discount basis with no stated coupon rate.
f Rounds to less than 0.1% of net assets.
g The Franklin Institutional Fiduciary Trust Money Market Portfolio is
managed by the Fund's investment manager. The rate shown is the annualized
seven-day yield at period end.
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 May 31, 2006, the cost of investments and net unrealized appreciation
(depreciation) for income tax purposes were as follows:
Cost of investments .................................... $ 1,080,237,459
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Unrealized appreciation ................................ $ 72,902,178
Unrealized depreciation ................................ (12,323,019)
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Net unrealized appreciation (depreciation) ............. $ 60,579,159
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2. FORWARD EXCHANGE CONTRACTS
At May 31, 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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225,000,000 Indonesia Rupiah ............. 7,303,772 NZD 6/21/06 $ 221,617
1,350,000,000 Japanese Yen ................. 11,690,741 10/16/06 537,037
4,200,000 Canadian Dollar .............. 5,472,313 NZD 10/24/06 382,192
3,600,000,000 Korean Won ................... 5,534,290 NZD 10/24/06 340,421
145,000,000 Thailand Baht ................ 5,557,046 NZD 10/24/06 295,644
2,800,000,000 Korean Won .................. 4,232,676 NZD 10/26/06 310,490
130,000,000 Indonesia Rupiah ............. 4,291,845 NZD 10/26/06 96,812
155,000,000 Indonesia Rupiah ............. 5,193,848 NZD 10/27/06 67,240
117,100,000 Thailand Baht ................ 4,118,599 NZD 11/30/06 476,043
117,100,000 Thailand Baht ................ 4,104,092 NZD 12/06/06 485,823
2,950,000,000 Korean Won ................... 4,130,154 NZD 12/06/06 544,649
1,937,371,200 Japanese Yen ................. 17,700,000 2/09/07 116,071
7,434,000 Brazilian Real ............... 2,950,000 2/28/07 50,101
543,250,000 Japanese Yen ................. 5,000,000 3/05/07 11,190
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UNREALIZED GAIN ON FORWARD EXCHANGE CONTRACTS .................................. $ 3,935,331
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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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7,000,000 Brazilian Real ............................. 2,941,794 1/04/07 $ (79,589)
1,280,000,000 Japanese Yen ............................... 11,949,216 2/13/07 (172,297)
228,082,050 Japanese Yen ............................... 2,135,000 2/22/07 (34,058)
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UNREALIZED LOSS ON FORWARD EXCHANGE CONTRACTS ................................................ (285,944)
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NET UNREALIZED GAIN ON FORWARD EXCHANGE CONTRACTS ...................................... $3,649,387
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a In US Dollar unless otherwise indicated.
CURRENCY ABBREVIATION
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 July 27, 2006
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 July 27, 2006
By /s/GALEN G. VETTER
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Galen G. Vetter
Chief Financial Officer
Date July 27, 2006