FORM N-Q
QUARTERLY SCHEDULE OF PORTFOLIO HOLDINGS OF
REGISTERED MANAGEMENT INVESTMENT COMPANIES
Investment Company Act file number 811-07866
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TEMPLETON EMERGING MARKETS 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)
MURRAY L. SIMPSON, 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: 05/31/05
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ITEM 1. SCHEDULE OF INVESTMENTS.
TEMPLETON EMERGING MARKETS INCOME FUND
QUARTERLY STATEMENT OF INVESTMENTS
MAY 31, 2005
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CONTENTS
Statement of Investments ................................................... 3
Notes to Statement of Investments .......................................... 6
[LOGO](R)
FRANKLIN TEMPLETON
INVESTMENTS
Franklin o TEMPLETON o Mutual Series
Quarterly Statement of Investments | 1
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TEMPLETON EMERGING MARKETS INCOME FUND
STATEMENT OF INVESTMENTS, MAY 31, 2005 (UNAUDITED)
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PRINCIPAL AMOUNT(b) VALUE
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LONG TERM INVESTMENTS 96.5%
ARGENTINA 9.0%
Republic of Argentina, FRN, 3.01%, 8/03/12 ...................... $ 65,845,000 $ 59,005,746
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BOSNIA AND HERZEGOVINA 1.3%
Bosnia & Herzegovina, FRN, 3.00%, 12/11/17 ...................... 8,041,599 EUR 8,313,674
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BRAZIL 16.5%
Republic of Brazil,
DCB, L, FRN, 3.125%, 4/15/12 .................................. 42,688,196 41,020,794
RG, FRN, 3.125%, 4/15/12 ...................................... 8,190,105 7,908,792
8.00%, 4/15/14 ................................................ 58,289,435 59,458,138
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108,387,724
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COLOMBIA 3.6%
Republic of Colombia,
10.50%, 07/09/10 .............................................. 2,758,000 3,228,928
10.75%, 01/15/13 .............................................. 12,450,000 14,805,540
11.75%, 02/25/20 .............................................. 4,255,000 5,469,164
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23,503,632
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HUNGARY 2.7%
Government of Hungary,
8.50%, 10/12/05 ............................................... 2,983,400,000 HUF 14,472,001
7.00%, 4/12/06 ................................................ 120,000,000 HUF 578,446
6.25%, 6/12/08 ................................................ 500,000,000 HUF 2,351,706
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17,402,153
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INDONESIA 10.8%
Government of Indonesia,
11.00%, 10/15/14 .............................................. 56,602,000,000 IDR 5,878,452
10.75%, 5/15/16 ............................................... 6,000,000,000 IDR 610,660
10.00%, 7/15/17 ............................................... 18,800,000,000 IDR 1,804,349
Indonesia Recapital Bonds,
13.15%, 3/15/10 ............................................... 81,420,000,000 IDR 9,361,720
14.25%, 6/15/13 ............................................... 208,402,000,000 IDR 25,519,283
14.275%, 12/15/13 ............................................. 154,470,000,000 IDR 19,008,507
(a),(c)P T Indah Kiat Finance Mauritius Ltd., 10.00%, 7/01/07 16,375,000 6,439,305
(a),(c)PT Inti Indorayon Utama TBK, 9.125%, 10/15/49 6,830,000 68,300
(a),(c)Tjiwi Kimia International Finance 13.25%, Co. BV,
senior note, 8/01/01 .......................................... 8,000,000 2,486,800
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71,177,376
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MALAYSIA 0.3%
Government of Malaysia,
4.305%, 2/27/09 ............................................... 4,450,000 MYR 1,208,784
4.032%, 9/15/09 ............................................... 1,850,000 MYR 497,804
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1,706,588
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MEXICO 2.5%
United Mexican States,
5.375%, 6/10/13 ............................................... 5,500,000 EUR 7,336,402
144A, 7.50%, 3/08/10 .......................................... 3,810,000 EUR 5,491,022
Reg S, 7.50%, 3/08/10 ......................................... 2,600,000 EUR 3,747,154
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16,574,578
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Quarterly Statement of Investments | 3
TEMPLETON EMERGING MARKETS INCOME FUND
STATEMENT OF INVESTMENTS, MAY 31, 2005 (UNAUDITED) (CONTINUED)
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PRINCIPAL AMOUNT(b) VALUE
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LONG TERM INVESTMENTS (CONT.)
PANAMA 0.9%
Republic of Panama, 10.75%, 5/15/20 ............................. $ 4,600,000 $ 6,158,250
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PERU 3.3%
Republic of Peru,
9.875%, 2/06/15 ............................................... 7,640,000 9,378,100
FRN, 4.50%, 3/07/17 ........................................... 13,167,000 12,492,191
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21,870,291
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PHILIPPINES 5.0%
Republic of Philippines,
8.375%, 2/15/11 ............................................... 6,500,000 6,768,125
9.00%, 2/15/13 ................................................ 17,210,000 18,199,575
8.875%, 3/17/15 ............................................... 2,100,000 2,211,510
Reg S, 8.75%, 10/07/16 ........................................ 5,450,000 5,552,188
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32,731,398
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POLAND 4.5%
Republic of Poland,
8.50%, 11/12/06 ............................................... 20,000,000 PLN 6,170,464
8.50%, 5/12/07 ................................................ 37,300,000 PLN 11,706,800
6.00%, 5/24/09 ................................................ 23,000,000 PLN 6,994,555
6.25%, 10/24/15 ............................................... 15,380,000 PLN 4,945,030
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29,816,849
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RUSSIA 9.5%
Aries Vermogen, Reg S, 9.60%, 10/25/14 .......................... 24,000,000 30,830,400
Russian Federation,
Reg S, 11.00%, 07/24/18 ....................................... 13,425,000 19,792,827
Reg S, 12.75%, 6/24/28 ........................................ 6,566,000 11,666,961
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62,290,188
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SLOVAK REPUBLIC 0.5%
Republic of Slovakia, 4.90%, 2/11/14 ............................ 91,000,000 SKK 3,186,364
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SOUTH AFRICA 2.2%
Republic of South Africa, 5.25%, 5/16/13 ........................ 10,490,000 EUR 14,109,361
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SOUTH KOREA 4.8%
Korea Treasury Bond,
6.90%, 1/16/07 ................................................ 10,000,000,000 KRW 10,429,945
4.75%, 3/12/08 ................................................ 20,465,000,000 KRW 20,899,040
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31,328,985
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THAILAND 4.0%
Thailand Government Bond,
8.50%, 10/14/05 ............................................... 670,000,000 THB 16,844,077
8.00%, 12/08/06 ............................................... 54,500,000 THB 1,441,129
4.125%, 2/12/08 ............................................... 98,000,000 THB 2,464,833
8.50%, 12/08/08 ............................................... 11,000,000 THB 316,925
4.80%, 4/09/10 ................................................ 212,000,000 THB 5,492,621
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26,559,585
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4 | Quarterly Statement of Investments
TEMPLETON EMERGING MARKETS INCOME FUND
STATEMENT OF INVESTMENTS, MAY 31, 2005 (UNAUDITED) (CONTINUED)
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PRINCIPAL AMOUNT(b) VALUE
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LONG TERM INVESTMENTS (CONT.)
UKRAINE 4.7%
Republic of Ukraine,
144A, FRN, 5.33%, 8/05/09 ..................................... $ 11,100,000 $ 11,910,854
144A, 7.65%, 6/11/13 .......................................... 16,948,000 18,473,320
FRN, 5.36%, 8/05/09 ........................................... 560,000 600,712
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30,984,886
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VENEZUELA 9.7%
Republic of Venezuela,
10.75%, 9/19/13 ............................................... 6,175,000 7,012,515
9.25%, 9/15/27 ................................................ 55,809,000 55,683,430
FRN, 3.09%, 4/20/11 ........................................... 720,000 645,156
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63,341,101
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VIETNAM 0.7%
Socialist Republic of Vietnam, FRN, 4.0625%, 3/12/16 ............ 5,061,913 4,821,123
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TOTAL LONG TERM INVESTMENTS (COST $597,193,525) ................. 633,269,852
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SHARES/PRINCIPAL AMOUNT(b)
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SHORT TERM INVESTMENTS 2.2%
THAILAND 0.2%
Bank of Thailand, 5/18/06 ....................................... Thailand 55,000,000 THB 1,319,593
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UNITED STATES 2.0%
(d)Franklin Institutional Fiduciary Trust Money Market Portfolio ... United States 12,951,889 12,951,889
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TOTAL SHORT TERM INVESTMENTS (COST $14,290,204).................. 14,271,482
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TOTAL INVESTMENTS (COST $611,483,729) 98.7% ..................... 647,541,334
OTHER ASSETS, LESS LIABILITIES 1.3% ............................. 8,722,648
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NET ASSETS 100.0% ............................................... $ 656,263,982
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CURRENCY ABBREVIATIONS:
EUR - Euro
HUF - Hungarian Forint
IDR - Indonesian Rupiah
KRW - Korean Won
MYR - Malaysian Ringett
PLN - Polish Zloty
SKK - Slovak Koruna
THB - Thai Baht
SELECTED PORTFOLIO ABBREVIATIONS
FRN - Floating Rate Notes
(a) Non-income producing.
(b) The principal amount is stated in U.S. dollars unless otherwise
indicated.
(c) Defaulted security.
(d) The Franklin Institutional Fiduciary Trust Money Market Portfolio is
managed by an affiliate of the Fund's investment manager.
Quarterly Statement of Investments |
See Notes to Statement of Investments. | 5
TEMPLETON EMERGING MARKETS INCOME FUND
NOTES TO STATEMENT OF INVESTMENTS (UNAUDITED)
Templeton Emerging Markets 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, 2005 the net unrealized appreciation (depreciation) based on the cost
of investments for income tax purposes was as follows:
Cost of investments $ 618,003,422
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Unrealized appreciation $ 57,680,387
Unrealized depreciation (28,142,475)
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Net unrealized appreciation (depreciation) $ 29,537,912
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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.
6 | Quarterly Statement of Investments
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 EMERGING MARKETS INCOME FUND
By /s/JIMMY D. GAMBILL
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Jimmy D. Gambill
Chief Executive Officer -
Finance and Administration
Date July 22, 2005
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 22, 2005
By /s/GALEN G. VETTER
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Galen G. Vetter
Chief Financial Officer
Date July 22, 2005