Edgar Filing: TEMPLETON GLOBAL INCOME FUND

n-csr_gim83116.htm - Generated by SEC Publisher for SEC Filing

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, DC 20549

FORM N-CSR

CERTIFIED SHAREHOLDER REPORT OF REGISTERED MANAGEMENT INVESTMENT COMPANIES

Investment Company Act file number 811-05459

Templeton Global Income Fund

(Exact name of registrant as specified in charter)

300 S.E. 2^nd Street, Fort Lauderdale, FL 33301-1923
(Address of principal executive offices) (Zip code)

Craig S. Tyle, One Franklin Parkway, San Mateo, CA 94403-1906

(Name and address of agent for service)

Registrant's telephone number, including area code: (954) 527-7500

Date of fiscal year end: _8/31__

Date of reporting period: 8/31/16__

Item 1. Reports to Stockholders.

Annual Report
August 31, 2016

Templeton Global Income Fund

Franklin Templeton Investments

Gain From Our Perspective^®

At Franklin Templeton Investments, we’re dedicated to one goal: delivering exceptional asset management for our clients. By bringing together multiple, world-class investment teams in a single firm, we’re able to offer specialized expertise across styles and asset classes, all supported by the strength and resources of one of the world’s largest asset managers. This has helped us to become a trusted partner to individual and institutional investors across the globe.


Contents

Annual Report
Templeton Global Income Fund	2
Performance Summary	6
Important Notice to Shareholders	8
Financial Highlights and Statement of Investments	9
Financial Statements	20
Notes to Financial Statements	23
Report of Independent Registered
Public Accounting Firm .	32
Tax Information .	33
Annual Meeting of Shareholders	34
Dividend Reinvestment and Cash Purchase Plan	35
Board Members and Officers	37
Shareholder Information	42

Annual Report

Templeton Global Income Fund

Dear Shareholder:

This annual report for Templeton Global Income Fund covers the fiscal year ended August 31, 2016.

Your Fund’s Goal and Main Investments

The Fund seeks high, current income, with a secondary goal of capital appreciation. Under normal market conditions, the Fund invests at least 80% of its net assets in income-producing securities, including debt securities of U.S. and foreign issuers, including emerging markets.

Performance Overview

For the 12 months under review, the Fund had cumulative total returns of +8.35% based on market price and +0.16% based on net asset value. For comparison, the global government bond market, as measured by the J.P. Morgan (JPM) Global Government Bond Index (GGBI), posted cumulative total returns of +7.46% in local currency terms and +9.92% in U.S. dollar terms for the same period.¹You can find the Fund’s long-term performance data in the Performance Summary on page 6.

Performance data represent past performance, which does not guarantee future results. Investment return and principal value will fluctuate, and you may have a gain or loss when you sell your shares. Current performance may differ from figures shown.

Economic and Market Overview

Global markets experienced periods of heightened volatility during the 12-month period, as declines in oil prices and concerns about global growth appeared to have negative effects on investor sentiment at times. Conditions in China also had significant influence on global markets. However, contrary to the dire concerns held by a number of market participants, we viewed the country’s moderation of growth as an inevitable and reasonable normalization for an economy of its size, and held the view that China’s growth would remain around its 6% to

*Figures represent the net Fund exposure and include certain derivatives held in the portfolio (or their underlying reference assets) or unsettled trades and may not total 100% or may be negative due to rounding, use of any derivatives or other factors.

**Includes foreign treasury bills, money market funds and net other assets less liabilities.

7% expansionary pace. Nonetheless, risk aversion persisted at the beginning of the period before eventually diminishing in October, as several emerging market currencies rebounded and appreciated against the U.S. dollar, while the euro and the Japanese yen depreciated.

After postponing action in September and October, the U.S. Federal Reserve (Fed) finally raised its policy rate by 25 basis points (0.25%) at its December 2015 meeting, marking the first increase in the federal funds rate since 2006 and the first non-zero rate policy since 2008. Despite the move toward tightening policy, the Federal Open Market Committee stressed that U.S. monetary policy would remain highly accommodative and that the pace of future increases would be gradual. Although bond yields initially shifted higher across much of Europe, Asia ex-Japan and Latin America in December, they subsequently declined during the first two months of 2016 as risk aversion returned and oil prices dropped below US$30 per barrel.

Despite the return of market pessimism, we continued to believe that fears of global deflation were unwarranted and that markets were overestimating the extent to which lower headline inflation reflected structurally weaker global demand. Supply factors were the main driver behind falling energy and commodity prices, by our assessment, which in turn pushed headline inflation lower. These were short-term effects, and we

1. Source: Morningstar.

The index is unmanaged and includes reinvestment of any income or distributions. It does not reflect any fees, expenses or sales charges. One cannot invest directly in an index, and an index is not representative of the Fund’s portfolio.

See www.franklintempletondatasources.com for additional data provider information.

The dollar value, number of shares or principal amount, and names of all portfolio holdings are listed in the Fund’s Statement of Investments (SOI).

The SOI begins on page 10.

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**The Fund’s euro area investments were in Portugal.

***The Fund’s supranational investment was denominated in the Mexican peso.

viewed their disinflationary impact as a factor that should wane as commodity prices stabilize. The belief that inflation had become structurally lower appeared to lead several investors to take a complacent view on interest rates, yet markets remained in a vulnerable phase of the yield cycle, by our assessment. Underlying inflation in the U.S. was not adequately priced into bond yields during the period, in our view, and we were wary of the lack of inflation being priced into bond yields across the globe. We believed there were more risks of inflation moving up than down, yet markets appeared to price in deflation and downside risks.

Additionally, during January and February, markets appeared to regard emerging economies as being in near-crisis condition, reacting as if conditions were worse than the 2008 global financial crisis or the Asian financial crisis of 1997 and 1998. However, several emerging market economies were in far better shape, by our assessment, with larger foreign reserves and more diversified, growing economies. We were focused on a number of opportunities in emerging market currencies on the conviction that the broad fears of a systemic crisis across the asset class were exaggerated. Over the final weeks of February, risk appetites returned and several local-currency markets rallied, creating a positive trend for global markets that largely carried into March and April.

The Fed passed on raising rates at its March and April meetings while indicating that rate hikes would likely be more gradual than previously envisioned at the end of 2015, reducing the

number of projected rate hikes for 2016 from four to two. The result of the Fed’s dovishness was an implicit easing of policy, as markets essentially eliminated previously priced-in rate hikes for the year. Consequently, the U.S. dollar weakened as the Japanese yen and the euro notably strengthened. We believed the periods of yen and euro strength would prove temporary and that fundamentals would ultimately re-emerge. We also believed that a firmer commitment to rate hikes in the U.S. would fortify the divergences in monetary policies between the easings of the European Central Bank and Bank of Japan, and the Fed’s tightening.

Market expectations for U.S. interest rate hikes increased sharply after hawkish-sounding comments were released in the Fed meeting minutes on May 18, leading yields to temporarily surge higher. However, in late June, U.K. voters approved the “Brexit” referendum to leave the European Union, which caused global markets to retreat into a state of heightened risk aversion. Yields declined to historic lows in the eurozone and the U.S. during the first eight days of July, before markets relatively stabilized by mid-month. A number of local-currency emerging markets rebounded in the second half of July, and Fed Chair Janet Yellen’s comments at Jackson Hole at the end of August added support to higher yield levels.

Investment Strategy

We invest selectively in bonds around the world to generate income for the Fund, seeking opportunities while monitoring changes in interest rates, currency exchange rates and credit risks. We seek to manage the Fund’s exposure to various currencies and may use currency forward contracts.

What is a currency forward contract?

A currency forward contract is an agreement between the Fund and a counterparty to buy or sell a foreign currency in exchange for another currency at a specific exchange rate on a future date.

Manager’s Discussion

On the whole, we continued to position our strategies for rising rates by maintaining low portfolio duration and aiming at a negative correlation with U.S. Treasury returns. We also continued to actively seek select duration exposures that we believe can offer positive real yields without taking undue interest-rate risk, favoring countries that we believe have solid underlying fundamentals and prudent fiscal, monetary and financial policies. When investing globally, investment opportunities may take time to materialize, which may require weathering short-term volatility as the longer term investing

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theses develop. During the period we shifted out of markets that we were previously contrarian on to reallocate to positions that we believe have fundamentally attractive valuations for the medium term ahead. We also maintained our exposures to several of our strongest investment convictions and added to those types of positions as prices became cheaper during periods of heightened volatility. Despite the persistence of volatility during the period, we remained encouraged by the vast set of what we considered fundamentally attractive valuations across the local currency markets. We were positioned for depreciation of the euro and the Japanese yen, rising U.S. Treasury yields, and currency appreciation in select emerging markets. During the period, we used currency forward contracts to actively manage exposure to currencies. We also used interest rate swaps to tactically manage duration exposures.

What is duration?

Duration is a measure of a bond’s price sensitivity to interest rate changes. In general, a portfolio of securities with a lower duration can be expected to be less sensitive to interest rate changes than a portfolio with a higher duration.

What is an interest rate swap?

An interest rate swap is an agreement between two parties to exchange interest rate payment obligations, generally one based on an interest rate fixed to maturity and the other based on an interest rate that changes in accordance with changes in a designated benchmark (for example, LIBOR, prime, commercial paper or other benchmarks).

During the period, the Fund’s absolute performance benefited from interest rate strategies. Sovereign credit exposures had a largely neutral effect on absolute return, while currency positions detracted. The Fund maintained a defensive approach regarding interest rates in developed and emerging markets. Select duration exposures in Latin America (Brazil) and Asia ex-Japan (Indonesia) contributed to absolute performance. However, negative duration exposure to U.S. Treasuries, through the use of interest rate swaps, detracted from absolute return. Among currencies, the Fund’s net-negative positions in the Japanese yen and the Australian dollar, through the use of currency forward contracts, detracted from absolute performance. However, the Fund’s net-negative position in the euro, also through the use of currency forward contracts, contributed to absolute return, as did currency positions in Latin America (Brazilian real) and Asia ex-Japan (Indonesian rupiah and Malaysian ringgit).


Currency Breakdown*
8/31/16
	% of Total
	Net Assets
Americas	140.1	%
U.S. Dollar	92.6	%
Mexican Peso	20.1	%
Brazilian Real	15.0	%
Chilean Peso	6.7	%
Peruvian Neuvo Sol	3.2	%
Colombian Peso	2.5	%
Asia Pacific	-2.2	%
Malaysian Ringgit	15.0	%
Indonesian Rupiah	10.3	%
Indian Rupee	8.7	%
Philippine Peso	4.5	%
Sri Lankan Rupee	1.9	%
South Korean Won	-3.0	%
Australian Dollar	-8.9	%
Japanese Yen	-30.7	%
Europe	-37.9	%
Polish Zloty	4.1	%
Euro	-42.0	%

On a relative basis, the Fund’s underperformance was primarily attributable to interest rate strategies followed by currency positions. Sovereign credit exposures had a largely neutral effect on relative performance. Underweighted duration exposures in the U.S., eurozone, Japan and the U.K. detracted from relative return. However, overweighted duration exposures in Asia ex-Japan (Indonesia) and Latin America (Brazil) contributed. Among currencies, underweighted positions in the Japanese yen and the Australian dollar detracted from relative return. However, underweighted positions in the British pound and the euro contributed. Overweighted currency positions in Latin America (Brazilian real) and Asia ex-Japan (Indonesian rupiah and Malaysian ringgit) also contributed to relative performance.

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Thank you for your continued participation in Templeton Global Income Fund. We look forward to serving your future investment needs.

Sincerely,

The foregoing information reflects our analysis, opinions and portfolio holdings as of August 31, 2016, the end of the reporting period. The way we implement our main investment strategies and the resulting portfolio holdings may change depending on factors such as market and economic conditions. These opinions may not be relied upon as investment advice or an offer for a particular security. The information is not a complete analysis of every aspect of any market, country, industry, security or the Fund. Statements of fact are from sources considered reliable, but the investment manager makes no representation or warranty as to their completeness or accuracy. Although historical performance is no guarantee of future results, these insights may help you understand our investment management philosophy.

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TEMPLETON GLOBAL INCOME FUND

Performance Summary as of August 31, 2016

Your dividend income will vary depending on dividends or interest paid by securities in the Fund’s portfolio, adjusted for operating expenses. Capital gain distributions are net profits realized from the sale of portfolio securities. Total return reflects reinvestment of the Fund’s dividends and capital gain distributions, if any, and any unrealized gains or losses. Total returns do not reflect any sales charges paid at inception or brokerage commissions paid on secondary market purchases. The performance table does not reflect any taxes that a shareholder would pay on Fund dividends, capital gains distributions, if any, or any realized gains on the sale of Fund shares.


Share Prices
Symbol:GIM		8/31/16		8/31/15		Change
Net Asset Value (NAV)	$	7.09	$	7.38	-$	0.29
Market Price (NYSE)	$	6.43	$	6.22	+$	0.21

Distributions¹(9/1/15–8/31/16)
		Dividend		Long-Term		Tax Return
		Income		Capital Gain		of Capital		Total
	$	0.1073	$	0.0179	$	0.1748	$	0.3000

Performance²

Average Annual

Cumulative Total Return³

Average Annual Total Return³

Total Return (9/30/16)⁴

Based on

NAV⁵

market price⁶

NAV⁵

market price⁶

NAV⁵

market price⁶

1-Year

+0.16

+8.35

+0.16

+8.35

+1.80

+7.39

5-Year

+7.62

-11.13

+1.48

-2.33

+3.28

+0.60

10-Year

+105.81

+91.17

+7.48

+6.69

+7.39

+6.11

See page 7 for Performance Summary footnotes.

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PERFORMANCE SUMMARY

All investments involve risks, including possible loss of principal. Changes in interest rates will affect the value of the Fund’s portfolio and its share price and yield. Bond prices generally move in the opposite direction of interest rates. Thus, as prices of bonds in the Fund adjust to a rise in interest rates, the Fund’s share price may decline. Special risks are associated with foreign investing, including currency fluctuations, economic instability and political developments of countries where the Fund invests. Investments in developing markets involve heightened risks related to the same factors, in addition to those associated with their relatively small size and lesser liquidity. The markets for particular securities or types of securities are or may become relatively illiquid. Reduced liquidity will have an adverse impact on the security’s value and on the Fund’s ability to sell such securities when necessary to meet the Fund’s liquidity needs or in response to a specific market event. Derivatives, including currency management strategies, involve costs and can create economic leverage in the portfolio that may result in significant volatility and cause the Fund to participate in losses (as well as enable gains) on an amount that exceeds the Fund’s initial investment. The Fund may not achieve the anticipated benefits and may realize losses when a counterparty fails to perform as promised. As a nondiversified investment company, the Fund may invest in a relatively small number of issuers and, as a result, be subject to a greater risk of loss with respect to its portfolio securities. The Fund is actively managed but there is no guarantee that the manager’s investment decisions will produce the desired results.

1. The distribution amount is the sum of the dividend payments to shareholders for the period shown and includes only estimated tax-basis net investment income, capital gain and tax return of capital.

2. The Fund has a fee waiver associated with any investment it makes in a Franklin Templeton money fund and/or other Franklin Templeton fund, contractually guaranteed through its current fiscal year-end. Fund investment results reflect the fee waiver; without this waiver, the results would have been lower.

3. Total return calculations represent the cumulative and average annual changes in value of an investment over the periods indicated. Return for less than one year, if any, has not been annualized.

4. In accordance with SEC rules, we provide standardized average annual total return information through the latest calendar quarter. 5. Assumes reinvestment of distributions based on net asset value.

6. Assumes reinvestment of distributions based on the dividend reinvestment and cash purchase plan.

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Important Notice to Shareholders

Changes to the Fiscal Year-End and Distribution Policy

Effective December 31, 2016, as approved by the board of trustees, the Fund’s fiscal year-end will be changed to December 31^st. This will result in the Fund having a fiscal year that is shorter than a full calendar year covering the transitional period between the Fund’s current fiscal year end and December 31, 2016.

In addition, the Fund, which has historically sought to pay a level distribution amount from net investment income on a quarterly basis, will implement a variable pay distribution policy, effective December 31, 2016. The Fund will continue to seek to pay any distributions from net investment income on a quarterly basis. Capital gains, if any, may be paid at least annually. The Fund may distribute income dividends and capital gains more frequently, if necessary, in order to reduce or eliminate federal excise or income taxes on the Fund. The amount of any distribution will vary, and there is no guarantee the Fund will pay either income dividends or capital gain distributions.

Share Repurchase Program

The Fund’s Board previously authorized the Fund to repurchase up to 10% of the Fund’s outstanding shares in open-market transactions, at the discretion of management. This authorization remains in effect.

In exercising its discretion consistent with its portfolio management responsibilities, the investment manager will take into account various other factors, including, but not limited to, the level of the discount, the Fund’s performance, portfolio holdings, dividend history, market conditions, cash on hand, the availability of other attractive investments and whether the sale of certain portfolio securities would be undesirable because of liquidity concerns or because the sale might subject the Fund to adverse tax consequences. Any repurchases would be made on a national securities exchange at the prevailing market price, subject to exchange requirements, Federal securities laws and rules that restrict repurchases, and the terms of any outstanding leverage or borrowing of the Fund. If and when the Fund’s 10% threshold is reached, no further repurchases could be completed until authorized by the Board. Until the 10% threshold is reached, Fund management will have the flexibility to commence share repurchases if and when it is determined to be appropriate in light of prevailing circumstances.

In the Notes to Financial Statements section, please see note 2 (Shares of Beneficial Interest) for additional information regarding shares repurchased.

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Financial Highlights
					Year Ended August 31,
		2016			2015			2014			2013				2012
Per share operating performance
(for a share outstanding throughout the year)
Net asset value, beginning of year	$	7.38		$	8.72		$	8.38		$	9.08		$	10.13
Income from investment operations:
Net investment income^a		0.31			0.33			0.35			0.38				0.41
Net realized and unrealized gains (losses)		(0.30	)		(1.04	)		0.61			(0.07	)			(0.30	)
Total from investment operations		0.01			(0.71	)		0.96			0.31				0.11
Less distributions from:
Net investment income and net foreign currency gains		(0.11	)		(0.63	)		(0.62	)		(0.72	)			(0.82	)
Net realized gains		(0.02	)		(—)^b			(—)^b			(0.29	)			(0.34	)
Tax return of capital.		(0.17	)		—			—			—				—
Total distributions		(0.30	)		(0.63	)		(0.62	)		(1.01	)			(1.16	)
Net asset value, end of year.	$	7.09		$	7.38		$	8.72		$	8.38			$	9.08
Market value, end of year^c	$	6.43		$	6.22		$	7.96		$	8.03			$	9.53

Total return (based on market value per share)		8.35	%		(14.76	)%		7.04	%		(5.97	)%		(4.40		)%

Ratios to average net assets
Expenses before waiver and payments by affiliates		0.76	%		0.74	%		0.73	%		0.73	%		0.75		%
Expenses net of waiver and payments by affiliates		0.73	%^d		0.73	%		0.73	%^e		0.73	%^e		0.75		%^e
Net investment income		4.38	%		4.14	%		4.05	%		4.21	%		4.55		%

Supplemental data
Net assets, end of year (000’s)	$	951,191		$	989,595		$	1,169,318		$	1,124,611		$	1,209,287
Portfolio turnover rate		46.03	%		35.51	%		45.61	%		18.16	%		38.60		%

^aBased on average daily shares outstanding.
^bAmount rounds to less than $0.01 per share.
^cBased on the last sale on the New York Stock Exchange.
^dBenefit of expense reduction rounds to less than 0.01%.
^eBenefit of waiver and payments by affiliates and expense reduction rounds to less than 0.01%.

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Statement of Investments, August 31, 2016
	Principal
	Amount*				Value

Foreign Government and Agency Securities 78.0%
Brazil 15.0%
Letra Tesouro Nacional,
Strip, 10/01/16	6,010	^a	BRL	$	1,841,140
Strip, 1/01/19	41,280	^a	BRL		9,797,321
Strip, 7/01/19	25,330	^a	BRL		5,695,584
Nota Do Tesouro Nacional,
10.00%, 1/01/21	65,655	^a	BRL		19,072,953
10.00%, 1/01/23	5,510	^a	BRL		1,564,075
10.00%, 1/01/25	47,290	^a	BRL		13,210,488
10.00%, 1/01/27	12,360	^a	BRL		3,391,784
^bIndex Linked, 6.00%, 5/15/17	231	^a	BRL		209,151
^bIndex Linked, 6.00%, 5/15/19	17,875	^a	BRL		16,103,908
^bIndex Linked, 6.00%, 8/15/20	760	^a	BRL		685,966
^bIndex Linked, 6.00%, 8/15/22	25,367	^a	BRL		22,907,770
^bIndex Linked, 6.00%, 5/15/23	17,719	^a	BRL		16,057,998
^bIndex Linked, 6.00%, 8/15/24	6,860	^a	BRL		6,259,093
^bIndex Linked, 6.00%, 8/15/50	23,895	^a	BRL		22,209,394
senior note, 10.00%, 1/01/17	12,615	^a	BRL		3,858,227
					142,864,852
Colombia 2.4%
Government of Colombia,
senior bond, 7.75%, 4/14/21	983,000,000		COP		348,986
senior bond, 4.375%, 3/21/23.	149,000,000		COP		44,613
senior bond, 9.85%, 6/28/27	237,000,000		COP		96,723
Titulos de Tesoreria,
B, 7.75%, 9/18/30	27,217,000,000		COP		9,302,430
senior bond, B, 11.25%, 10/24/18	2,117,000,000		COP		770,206
senior bond, B, 7.00%, 5/04/22.	2,218,000,000		COP		739,541
senior bond, B, 10.00%, 7/24/24	3,997,000,000		COP		1,552,870
senior bond, B, 7.50%, 8/26/26.	20,289,000,000		COP		6,823,091
senior bond, B, 6.00%, 4/28/28.	8,540,000,000		COP		2,545,494
senior note, B, 7.00%, 9/11/19	1,258,000,000		COP		423,165
senior note, B, 11.00%, 7/24/20	1,144,000,000		COP		434,807
					23,081,926
India 4.8%
Government of India,
senior bond, 7.80%, 5/03/20	231,200,000		INR		3,544,087
senior bond, 8.35%, 5/14/22	68,200,000		INR		1,076,634
senior bond, 9.15%, 11/14/24.	387,000,000		INR		6,459,736
senior bond, 8.33%, 7/09/26	476,000,000		INR		7,683,201
senior bond, 8.15%, 11/24/26.	203,000,000		INR		3,239,045
senior bond, 8.28%, 9/21/27	433,900,000		INR		7,003,561
senior bond, 8.60%, 6/02/28	239,800,000		INR		3,969,044
senior note, 7.28%, 6/03/19	9,000,000		INR		135,704
senior note, 8.12%, 12/10/20	173,600,000		INR		2,699,648
senior note, 7.16%, 5/20/23	42,900,000		INR		642,969
senior note, 8.83%, 11/25/23	579,400,000		INR		9,470,621
					45,924,250

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STATEMENT OF INVESTMENTS


	Principal
	Amount*				Value

Foreign Government and Agency Securities (continued)
Indonesia 9.1%
Government of Indonesia,
6.125%, 5/15/28	3,157,000,000		IDR	$	215,939
FR34, 12.80%, 6/15/21	64,492,000,000		IDR		6,033,594
FR35, 12.90%, 6/15/22	42,438,000,000		IDR		4,102,261
FR36, 11.50%, 9/15/19	32,651,000,000		IDR		2,787,057
FR43, 10.25%, 7/15/22	4,826,000,000		IDR		420,672
FR48, 9.00%, 9/15/18	4,494,000,000		IDR		353,965
senior bond, 9.00%, 3/15/29	30,263,000,000		IDR		2,583,219
senior bond, FR31, 11.00%, 11/15/20	145,557,000,000		IDR		12,630,301
senior bond, FR39, 11.75%, 8/15/23	2,703,000,000		IDR		254,918
senior bond, FR42, 10.25%, 7/15/27	3,595,000,000		IDR		332,607
senior bond, FR44, 10.00%, 9/15/24	1,618,000,000		IDR		143,599
senior bond, FR46, 9.50%, 7/15/23	49,800,000,000		IDR		4,250,878
senior bond, FR47, 10.00%, 2/15/28	1,052,000,000		IDR		95,943
senior bond, FR53, 8.25%, 7/15/21	144,200,000,000		IDR		11,537,081
senior bond, FR56, 8.375%, 9/15/26	274,910,000,000		IDR		22,637,217
senior bond, FR59, 7.00%, 5/15/27	2,105,000,000		IDR		157,072
senior bond, FR61, 7.00%, 5/15/22	13,189,000,000		IDR		998,059
senior bond, FR63, 5.625%, 5/15/23	16,137,000,000		IDR		1,132,661
senior bond, FR69, 7.875%, 4/15/19	28,078,000,000		IDR		2,179,788
senior bond, FR70, 8.375%, 3/15/24	149,967,000,000		IDR		12,179,345
senior note, 8.50%, 10/15/16	19,302,000,000		IDR		1,461,721
senior note, FR66, 5.25%, 5/15/18	5,394,000,000		IDR		398,630
					86,886,527
Malaysia 3.2%
Government of Malaysia,
senior bond, 4.262%, 9/15/16.	46,787,000		MYR		11,437,622
senior bond, 3.814%, 2/15/17.	10,080,000		MYR		2,478,405
senior bond, 4.24%, 2/07/18	9,538,000		MYR		2,382,304
senior bond, 3.26%, 3/01/18	14,651,000		MYR		3,610,953
senior note, 3.394%, 3/15/17	11,592,000		MYR		2,846,994
senior note, 4.012%, 9/15/17	15,886,000		MYR		3,939,553
senior note, 0512, 3.314%, 10/31/17	13,090,000		MYR		3,225,135
					29,920,966
Mexico 14.6%
Government of Mexico,
7.25%, 12/15/16	7,441,400	^c	MXN		39,889,101
7.75%, 12/14/17	10,748,940	^c	MXN		59,375,328
senior note, 8.50%, 12/13/18	6,517,200	^c	MXN		37,048,825
^dMexican Udibonos,
Index Linked, 3.50%, 12/14/17	216,665	^e	MXN		1,184,608
Index Linked, 4.00%, 6/13/19	125,999	^e	MXN		702,272
Index Linked, 2.50%, 12/10/20	99,364	^e	MXN		530,114
					138,730,248
Peru 3.2%
Government of Peru, senior bond, 7.84%, 8/12/20	93,349,000		PEN		30,442,067

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TEMPLETON GLOBAL INCOME FUND
STATEMENT OF INVESTMENTS


	Principal
	Amount*			Value

Foreign Government and Agency Securities (continued)
Philippines 1.6%
Government of the Philippines,
senior bond, 1042, 9.125%, 9/04/16	2,270,000	PHP	$	48,686
senior note, 5.875%, 1/31/18	1,480,000	PHP		32,935
senior note, 3.375%, 8/20/20	9,870,000	PHP		216,238
senior note, 3-21, 2.875%, 5/22/17	15,570,000	PHP		335,467
senior note, 5-72, 2.125%, 5/23/18	61,567,000	PHP		1,318,412
senior note, 7-51, 5.00%, 8/18/18	11,330,000	PHP		253,324
senior note, 7-56, 3.875%, 11/22/19	578,780,000	PHP		12,719,654
				14,924,716
Poland 4.1%
Government of Poland,
4.75%, 10/25/16	36,315,000	PLN		9,334,447
4.75%, 4/25/17	3,210,000	PLN		838,261
5.75%, 9/23/22	60,500,000	PLN		18,451,633
^fFRN, 1.79%, 1/25/17.	22,569,000	PLN		5,780,376
^fFRN, 1.79%, 1/25/21.	19,374,000	PLN		4,898,512
				39,303,229
Portugal 2.7%
Government of Portugal,
^g144A, 5.125%, 10/15/24	9,390,000			9,443,382
^hReg S, 3.875%, 2/15/30.	13,300,000	EUR		15,513,189
^hsenior bond, Reg S, 4.95%, 10/25/23	92,700	EUR		118,822
^hsenior bond, Reg S, 5.65%, 2/15/24	232,100	EUR		307,878
				25,383,271
South Korea 9.4%
Korea Monetary Stabilization Bond,
senior note, 1.56%, 10/02/17	12,255,300,000	KRW		11,008,127
senior note, 1.25%, 8/02/18	107,000,000	KRW		95,769
Korea Treasury Bond,
senior note, 2.00%, 12/10/17	16,590,000,000	KRW		14,990,093
senior note, 1.50%, 6/10/19	3,889,100,000	KRW		3,503,766
senior note, 2.75%, 9/10/19	895,000,000	KRW		835,830
senior note, 2.00%, 3/10/21	63,563,200,000	KRW		58,601,183
senior note, 1.375%, 9/10/21	475,400,000	KRW		426,733
				89,461,501
Sri Lanka 1.9%
Government of Sri Lanka,
10.60%, 7/01/19	797,850,000	LKR		5,378,131
10.60%, 9/15/19	539,240,000	LKR		3,635,881
8.00%, 11/01/19	31,420,000	LKR		196,844
9.25%, 5/01/20	124,820,000	LKR		798,663
11.20%, 7/01/22	55,890,000	LKR		371,996
A, 9.00%, 5/01/21	702,230,000	LKR		4,362,032
A, 11.00%, 8/01/21	470,110,000	LKR		3,133,927
				17,877,474
ⁱSupranational 1.2%
Inter-American Development Bank, senior note, 7.50%, 12/05/24	185,000,000	MXN		11,040,594

12 Annual Report

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TEMPLETON GLOBAL INCOME FUND
STATEMENT OF INVESTMENTS


	Principal
	Amount*			Value

Foreign Government and Agency Securities (continued)
Ukraine 4.8%
^gGovernment of Ukraine,
144A, 7.75%, 9/01/19	1,338,000		$	1,335,659
144A, 7.75%, 9/01/20	5,725,000			5,674,191
144A, 7.75%, 9/01/21	5,146,000			5,062,377
144A, 7.75%, 9/01/22	5,431,000			5,312,333
144A, 7.75%, 9/01/23	4,871,000			4,740,944
144A, 7.75%, 9/01/24	5,431,000			5,268,667
144A, 7.75%, 9/01/25	5,431,000			5,249,197
144A, 7.75%, 9/01/26	4,521,000			4,351,576
144A, 7.75%, 9/01/27	5,431,000			5,200,047
^j,k144A, VRI, GDP Linked Securities, 5/31/40	11,154,000			3,603,913
				45,798,904
Total Foreign Government and Agency Securities (Cost $786,242,940)				741,640,525

Short Term Investments 15.8%
Foreign Government and Agency Securities 3.9%
Malaysia 0.8%
^lBank of Negara Monetary Note, 9/15/16 - 7/20/17	31,130,000	MYR		7,495,371
^lMalaysia Treasury Bill, 1/20/17	200,000	MYR		48,356
				7,543,727
Mexico 0.3%
^lMexico Treasury Bill, 10/13/16 - 3/30/17	4,513,740^mMXN			2,369,540
Philippines 2.8%
^lPhilippine Treasury Bill, 9/07/16 - 8/09/17	1,276,520,000	PHP		27,070,015
Total Foreign Government and Agency Securities (Cost $37,069,668)				36,983,282
Total Investments before Money Market Funds (Cost $823,312,608)				778,623,807


	Shares

Money Market Funds (Cost $113,186,351) 11.9%
United States 11.9%
^j,nInstitutional Fiduciary Trust Money Market Portfolio	113,186,351			113,186,351
Total Investments (Cost $936,498,959) 93.8%				891,810,158
Other Assets, less Liabilities 6.2%				59,381,224
Net Assets 100.0%			$	951,191,382

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TEMPLETON GLOBAL INCOME FUND
STATEMENT OF INVESTMENTS

*The principal amount is stated in U.S. dollars unless otherwise indicated.
^aPrincipal amount is stated in 1,000 Brazilian Real Units.
^bRedemption price at maturity is adjusted for inflation. See Note 1(e).
^cPrincipal amount is stated in 100 Mexican Peso Units.
^dPrincipal amount of security is adjusted for inflation. See Note 1(e).
^ePrincipal amount is stated in 100 Unidad de Inversion Units.
^fThe coupon rate shown represents the rate at period end.
^gSecurity was purchased pursuant to Rule 144A under the Securities Act of 1933 and may be sold in transactions exempt from registration only to qualified institutional buyers
or in a public offering registered under the Securities Act of 1933. These securities have been deemed liquid under guidelines approved by the Fund’s Board of Trustees. At
August 31, 2016, the aggregate value of these securities was $55,242,286, representing 5.8% of net assets.
^hSecurity 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 August 31, 2016, the aggregate value of these
securities was $15,939,889, representing 1.7% of net assets.
ⁱA supranational organization is an entity formed by two or more central governments through international treaties.
^jNon-income producing.
^kThe principal represents the notional amount. See Note 1(c) regarding value recovery instruments.
^lThe security was issued on a discount basis with no stated coupon rate.
^mPrincipal amount is stated in 10 Mexican Peso Units.
ⁿSee Note 3(c) regarding investments in affiliated management investment companies.

At August 31, 2016, the Fund had the following forward exchange contracts outstanding. See Note 1(c).


Forward Exchange Contracts
				Contract	Settlement		Unrealized		Unrealized
Currency	Counterparty^aType		Quantity	Amount*	Date		Appreciation		Depreciation
OTC Forward Exchange Contracts
Japanese Yen	HSBK	Buy	980,688,000	9,566,288	9/01/16	$	—	$	(87,391	)
Japanese Yen	HSBK	Sell	980,688,000	8,709,485	9/01/16		—		(769,412	)
Chilean Peso.	DBAB	Buy	3,898,300,000	5,607,480	9/02/16		118,490		—
Chilean Peso.	DBAB	Sell	3,898,300,000	5,773,976	9/02/16		48,006		—
Chilean Peso.	MSCO	Buy	1,180,229,000	1,783,389	9/02/16		—		(49,824	)
Chilean Peso.	MSCO	Sell	1,180,229,000	1,739,289	9/02/16		5,723		—
Chilean Peso.	DBAB	Buy	1,123,610,000	1,607,453	9/06/16		42,388		—
Chilean Peso.	DBAB	Sell	1,123,610,000	1,652,368	9/06/16		2,526		—
Chilean Peso.	MSCO	Buy	695,440,000	1,055,232	9/06/16		—		(34,089	)
Chilean Peso.	MSCO	Buy	1,180,229,000	1,683,276	9/06/16		49,702		—
Chilean Peso.	MSCO	Sell	1,875,669,000	2,768,515	9/06/16		14,395		—
Euro.	HSBK	Sell	6,684,000	7,515,490	9/06/16		58,474		—
Euro.	JPHQ	Sell	893,000	1,003,645	9/06/16		7,368		—
Chilean Peso.	JPHQ	Buy	510,998,000	744,255	9/09/16		5,874		—
Euro.	CITI	Sell	4,817,000	5,487,045	9/09/16		112,224		—
Euro.	HSBK	Sell	3,548,865	4,042,494	9/09/16		82,662		—
Euro.	MSCO	Sell	3,640,000	4,149,138	9/09/16		87,617		—
Euro.	SCNY	Sell	1,325,806	1,510,172	9/09/16		30,835		—
Japanese Yen	BZWS	Sell	192,016,500	1,701,083	9/09/16		—		(155,562	)
Chilean Peso.	DBAB	Buy	1,571,026,500	2,313,225	9/12/16		—		(7,594	)
Euro.	BOFA	Sell	4,891,000	5,440,406	9/12/16		—		(17,722	)
Chilean Peso.	JPHQ	Buy	1,128,000,000	1,647,413	9/13/16		7,894		—
Australian Dollar	CITI	Sell	8,404,000	6,054,074	9/14/16		—		(258,373	)
South Korean Won.	CITI	Sell	5,158,000,000	4,256,829	9/19/16		—		(362,905	)
South Korean Won.	HSBK	Buy	1,316,000,000	1,174,161	9/19/16		4,507		—
South Korean Won.	HSBK	Buy	8,324,000,000	7,508,908	9/19/16		—		(53,563	)
South Korean Won.	HSBK	Sell	9,640,000,000	7,896,461	9/19/16		—		(737,552	)

14 Annual Report

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TEMPLETON GLOBAL INCOME FUND
STATEMENT OF INVESTMENTS


Forward Exchange Contracts (continued)

				Contract		Settlement		Unrealized		Unrealized
Currency	Counterparty^aType		Quantity	Amount*		Date		Appreciation		Depreciation
OTC Forward Exchange Contracts (continued)
Chilean Peso.	DBAB	Buy	1,284,555,000	1,846,686		9/20/16	$	37,244	$	—
Chilean Peso.	MSCO	Buy	521,800,000	792,768		9/20/16		—		(27,495	)
Japanese Yen	BZWS	Sell	132,990,000	1,101,002		9/20/16		—		(185,570	)
Chilean Peso.	DBAB	Buy	1,316,496,000	1,995,598		9/22/16		—		(65,149	)
Euro.	BZWS	Sell	1,951,632	2,212,712		9/22/16		33,799		—
Euro.	MSCO	Sell	905,000	1,025,510		9/23/16		15,071		—
Japanese Yen	CITI	Sell	220,552,000	1,988,747		9/23/16		—		(145,218	)
Japanese Yen	MSCO	Sell	311,200,000	2,807,321		9/23/16		—		(203,714	)
Japanese Yen	BZWS	Sell	125,158,380	1,116,464		9/26/16		—		(94,685	)
South Korean Won.	HSBK	Sell	10,258,000,000	8,817,639		9/26/16		—		(369,461	)
South Korean Won.	HSBK	Sell	10,307,000,000	8,795,119		9/28/16		—		(435,744	)
Euro.	BOFA	Sell	6,239,050	7,047,569		9/29/16		79,740		—
Euro.	CITI	Sell	4,987,740	5,632,804		9/29/16		62,450		—
Euro.	GSCO	Sell	6,683,000	7,549,117		9/29/16		85,481		—
Euro.	JPHQ	Sell	3,821,732	4,315,144		9/29/16		46,999		—
Chilean Peso.	DBAB	Buy	1,155,002,000	1,677,928		9/30/16		14,568		—
Euro.	BZWS	Sell	4,618,433	5,220,122		9/30/16		61,981		—
Chilean Peso.	DBAB	Buy	5,013,937,000	7,430,565		10/03/16		—		(85,063	)
Chilean Peso.	MSCO	Buy	1,875,669,000	2,761,789		10/03/16		—		(13,902	)
Australian Dollar	GSCO	Sell	26,618,090	20,232,144		10/06/16		249,933		—
Japanese Yen	JPHQ	Sell	278,975,000	2,517,053		10/06/16		—		(183,728	)
Japanese Yen	JPHQ	Sell	278,975,000	2,341,455		10/07/16		—		(359,434	)
Chilean Peso.	MSCO	Buy	2,208,355,000	3,289,032		10/11/16		—		(55,789	)
Japanese Yen	HSBK	Sell	555,000,000	4,670,341		10/11/16		—		(703,739	)
Chilean Peso.	DBAB	Buy	806,419,000	1,206,041		10/12/16		—		(25,458	)
Euro.	JPHQ	Sell	846,000	967,926		10/13/16		22,549		—
Japanese Yen	BZWS	Sell	281,000,000	2,365,220		10/13/16		—		(355,929	)
Japanese Yen	DBAB	Sell	277,200,000	2,333,923		10/13/16		—		(350,428	)
Chilean Peso.	DBAB	Buy	806,419,000	1,212,660		10/14/16		—		(32,264	)
Euro.	BZWS	Sell	1,760,000	2,025,408		10/17/16		58,340		—
Malaysian Ringgit	DBAB	Buy	142,760,000	29,481,249	EUR	10/17/16		1,877,055		—
Chilean Peso.	DBAB	Buy	1,026,660,000	1,543,850		10/18/16		—		(41,547	)
Euro.	GSCO	Sell	1,688,000	1,881,698		10/18/16		—		(4,978	)
South Korean Won.	HSBK	Buy	16,567,000,000	14,779,824		10/18/16		55,853		—
South Korean Won.	HSBK	Sell	16,567,000,000	14,308,416		10/18/16		—		(527,260	)
Euro.	BZWS	Sell	8,327,871	9,282,703		10/19/16		—		(25,740	)
Mexican Peso	DBAB	Buy	67,596,340	3,979,767		10/21/16		—		(403,894	)
Chilean Peso.	BZWS	Buy	1,898,900,000	2,888,720		10/24/16		—		(111,385	)
Japanese Yen	BZWS	Sell	146,100,000	1,230,238		10/24/16		—		(185,191	)
Mexican Peso	CITI	Buy	21,771,590	1,277,526		10/24/16		—		(126,144	)
Mexican Peso	DBAB	Buy	62,150,960	3,641,523		10/24/16		—		(354,695	)
Chilean Peso.	DBAB	Buy	1,412,561,000	2,144,793		10/25/16		—		(78,941	)
Chilean Peso.	JPHQ	Buy	298,440,000	455,425		10/25/16		—		(18,960	)
Euro.	BZWS	Sell	2,780,907	3,095,914		10/27/16		—		(13,472	)
Indian Rupee	DBAB	Buy	68,380,000	1,002,963		10/27/16		9,161		—
Chilean Peso.	DBAB	Buy	2,651,270,000	3,995,283		10/28/16		—		(118,748	)
Chilean Peso.	MSCO	Buy	1,196,046,000	1,791,749		10/28/16		—		(42,958	)
Indian Rupee	HSBK	Buy	869,744,000	11,523,436	EUR	10/28/16		—		(13,539	)
Euro.	BOFA	Sell	9,743,550	10,752,105		10/31/16		—		(144,180	)
Euro.	JPHQ	Sell	6,683,000	7,440,117		11/01/16		—		(33,853	)
South Korean Won.	HSBK	Sell	4,601,000,000	3,984,757		11/02/16		—		(135,213	)
Euro.	BZWS	Sell	16,250,000	18,107,213		11/04/16		—		(68,405	)

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TEMPLETON GLOBAL INCOME FUND
STATEMENT OF INVESTMENTS


Forward Exchange Contracts (continued)

				Contract		Settlement		Unrealized		Unrealized
Currency	Counterparty^aType		Quantity	Amount*		Date		Appreciation		Depreciation
OTC Forward Exchange Contracts (continued)
Chilean Peso.	MSCO	Buy	2,208,271,000	3,332,485		11/07/16	$	—	$	(106,617	)
Chilean Peso.	DBAB	Buy	2,719,981,000	4,098,826		11/08/16		—		(125,821	)
Euro.	CITI	Sell	1,575,600	1,762,703		11/08/16		92		—
Euro.	HSBK	Sell	6,579,510	7,361,748		11/08/16		1,305		—
Chilean Peso.	DBAB	Buy	584,343,000	880,565		11/09/16		—		(27,111	)
Japanese Yen	CITI	Sell	104,080,747	864,745		11/09/16		—		(144,264	)
Euro.	CITI	Sell	851,902	947,877		11/10/16		—		(5,220	)
Chilean Peso.	MSCO	Buy	3,644,905,000	5,576,831		11/14/16		—		(255,821	)
Euro.	GSCO	Sell	560,000	628,410		11/14/16		1,781		—
Euro.	JPHQ	Sell	2,765,652	3,060,761		11/14/16		—		(33,948	)
Japanese Yen	CITI	Sell	335,732,000	2,758,912		11/14/16		—		(496,518	)
Japanese Yen	GSCO	Sell	203,561,000	1,877,834		11/14/16		—		(95,998	)
Japanese Yen	HSBK	Sell	286,780,000	2,354,806		11/14/16		—		(425,961	)
Japanese Yen	JPHQ	Sell	102,242,000	838,867		11/14/16		—		(152,524	)
Japanese Yen	SCNY	Sell	152,158,000	1,403,698		11/14/16		—		(71,705	)
South Korean Won.	CITI	Sell	5,173,000,000	4,424,960		11/14/16		—		(207,449	)
Euro.	CITI	Sell	1,349,575	1,513,386		11/15/16		3,174		—
Euro.	JPHQ	Sell	4,820,000	5,397,677		11/15/16		3,963		—
Euro.	SCNY	Sell	3,955,000	4,434,148		11/15/16		8,393		—
Australian Dollar	JPHQ	Sell	15,958,000	11,671,681		11/16/16		—		(296,354	)
Chilean Peso.	MSCO	Buy	1,625,385,000	2,493,495		11/16/16		—		(121,126	)
Euro.	JPHQ	Sell	12,428,000	13,918,863		11/16/16		10,987		—
Japanese Yen	CITI	Sell	152,157,000	1,254,127		11/16/16		—		(221,389	)
Japanese Yen	MSCO	Sell	245,000,000	2,018,371		11/16/16		—		(357,474	)
Japanese Yen	SCNY	Sell	103,657,300	957,469		11/16/16		—		(47,730	)
South Korean Won.	CITI	Sell	4,268,000,000	3,647,552		11/16/16		—		(174,466	)
Chilean Peso.	DBAB	Buy	2,138,616,500	3,275,064		11/17/16		—		(153,889	)
South Korean Won.	HSBK	Buy	13,274,000,000	11,876,939		11/17/16		10,051		—
South Korean Won.	HSBK	Sell	13,274,000,000	11,314,836		11/17/16		—		(572,154	)
Euro.	MSCO	Sell	1,228,000	1,391,042		11/18/16		16,698		—
Indonesian Rupiah	JPHQ	Buy	34,485,000,000	3,466,526	AUD	11/18/16		—		(29,767	)
Japanese Yen	DBAB	Sell	592,373,000	4,878,027		11/18/16		—		(866,889	)
South Korean Won.	HSBK	Sell	7,321,000,000	6,237,274		11/18/16		—		(318,778	)
Euro.	UBSW	Sell	9,844,000	11,141,390		11/21/16		122,840		—
Japanese Yen	CITI	Sell	1,556,879,000	13,518,667		11/21/16		—		(1,582,063	)
South Korean Won.	CITI	Sell	16,347,000,000	13,822,933		11/21/16		—		(816,211	)
Chilean Peso.	JPHQ	Buy	662,940,000	1,000,287		11/22/16		—		(33,223	)
Euro.	JPHQ	Sell	5,056,324	5,748,065		11/22/16		88,196		—
Indian Rupee	JPHQ	Buy	412,387,000	5,367,840	EUR	11/22/16		74,023		—
Euro.	UBSW	Sell	370,478	420,863		11/23/16		6,145		—
South Korean Won.	DBAB	Sell	5,870,000,000	4,989,757		11/23/16		—		(267,019	)
Chilean Peso.	DBAB	Buy	1,570,389,000	2,329,090		11/25/16		—		(38,932	)
Euro.	JPHQ	Sell	11,085,000	12,606,527		11/25/16		196,774		—
Japanese Yen	HSBK	Sell	154,574,000	1,421,239		11/25/16		—		(78,281	)
Mexican Peso	CITI	Buy	245,000,000	14,422,794		11/25/16		—		(1,503,987	)
Euro.	BOFA	Sell	1,464,790	1,656,209		11/28/16		16,152		—
Euro.	SCNY	Sell	8,685,912	9,822,481		11/28/16		97,274		—
Japanese Yen	BOFA	Sell	860,890,000	7,880,938		11/28/16		—		(471,596	)
Japanese Yen	SCNY	Sell	696,345,000	6,388,633		11/28/16		—		(367,451	)
Malaysian Ringgit	HSBK	Buy	50,063,035	10,796,428	EUR	11/28/16		111,423		—
Chilean Peso.	CITI	Buy	515,662,000	773,686		11/30/16		—		(22,022	)
Indian Rupee	DBAB	Buy	1,151,765,600	14,873,294	EUR	11/30/16		315,352		—

16 Annual Report

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TEMPLETON GLOBAL INCOME FUND
STATEMENT OF INVESTMENTS


Forward Exchange Contracts (continued)

				Contract		Settlement		Unrealized		Unrealized
Currency	Counterparty^aType		Quantity	Amount*		Date		Appreciation		Depreciation
OTC Forward Exchange Contracts (continued)
Malaysian Ringgit	JPHQ	Buy	118,779,709	25,789,159	EUR	11/30/16	$	65,760	$	—
Euro.	GSCO	Sell	454,000	486,756		12/02/16		—		(21,663	)
South Korean Won.	HSBK	Buy	3,230,000,000	2,890,101		12/02/16		2,577		—
South Korean Won.	HSBK	Sell	3,230,000,000	2,725,738		12/02/16		—		(166,940	)
Chilean Peso.	DBAB	Buy	1,123,610,000	1,640,187		12/06/16		—		(3,157	)
Japanese Yen	HSBK	Sell	230,100,000	2,152,479		12/09/16		—		(81,229	)
Australian Dollar	JPHQ	Sell	8,507,000	6,054,253		12/12/16		—		(322,098	)
Japanese Yen	CITI	Sell	496,800,000	4,680,015		12/12/16		—		(143,434	)
Australian Dollar	JPHQ	Sell	12,551,000	9,261,571		12/13/16		—		(145,731	)
Japanese Yen	DBAB	Sell	167,200,000	1,580,370		12/13/16		—		(43,064	)
Japanese Yen	HSBK	Sell	505,050,000	4,769,122		12/13/16		—		(134,677	)
Japanese Yen	JPHQ	Sell	467,930,000	4,416,788		12/13/16		—		(126,593	)
Australian Dollar	CITI	Sell	8,460,000	6,244,495		12/14/16		—		(96,363	)
Australian Dollar	JPHQ	Sell	4,228,000	3,026,741		12/14/16		—		(142,190	)
South Korean Won.	CITI	Sell	3,870,000,000	3,293,057		12/15/16		—		(172,954	)
Australian Dollar	CITI	Sell	1,690,900	1,241,651		12/16/16		—		(25,644	)
Japanese Yen	HSBK	Sell	187,120,000	1,777,693		12/16/16		—		(39,432	)
Australian Dollar	CITI	Sell	3,408,700	2,501,338		12/20/16		—		(53,199	)
South Korean Won.	DBAB	Sell	5,874,000,000	4,995,833		12/20/16		—		(265,080	)
Japanese Yen	GSCO	Sell	69,178,000	590,478		1/10/17		—		(82,167	)
Japanese Yen	JPHQ	Sell	278,975,000	2,372,418		1/10/17		—		(340,166	)
Japanese Yen	JPHQ	Sell	278,975,000	2,767,609		1/10/17		55,025		—
Euro.	BZWS	Sell	1,509,000	1,661,152		1/11/17		—		(32,028	)
Japanese Yen	BZWS	Sell	474,230,000	4,748,521		1/11/17		137,160		—
Japanese Yen	BZWS	Sell	237,550,000	2,334,748		1/13/17		24,602		—
Japanese Yen	CITI	Sell	94,950,000	815,399		1/17/17		—		(108,167	)
Indonesian Rupiah	JPHQ	Buy	111,570,000,000	11,021,436	AUD	1/19/17		—		(20,709	)
Japanese Yen	HSBK	Sell	372,780,000	3,555,026		1/19/17		—		(71,326	)
Japanese Yen	SCNY	Sell	219,020,000	2,090,733		1/19/17		—		(39,862	)
Euro.	JPHQ	Sell	2,459,575	2,714,461		1/23/17		—		(46,936	)
Japanese Yen	DBAB	Sell	95,240,000	825,125		1/23/17		—		(101,546	)
Malaysian Ringgit	DBAB	Buy	11,019,000	2,465,487	EUR	1/23/17		—		(87,360	)
Malaysian Ringgit	JPHQ	Buy	14,167,000	3,155,585	EUR	1/23/17		—		(96,305	)
Japanese Yen	JPHQ	Sell	275,000,000	2,608,885		1/25/17		—		(67,095	)
Euro.	BZWS	Sell	4,351,556	4,770,328		1/27/17		—		(116,176	)
Euro.	GSCO	Sell	1,800,000	1,975,302		1/27/17		—		(45,977	)
Japanese Yen	JPHQ	Sell	95,800,000	817,832		1/27/17		—		(114,478	)
Malaysian Ringgit	DBAB	Buy	14,167,000	3,169,351	EUR	1/27/17		—		(112,870	)
Japanese Yen	HSBK	Sell	817,266,455	6,979,218		1/31/17		—		(975,905	)
South Korean Won.	HSBK	Sell	35,000,000,000	30,826,141		1/31/17		—		(525,781	)
Euro.	BZWS	Sell	4,094,000	4,639,014		2/08/17		39,028		—
Euro.	CITI	Sell	8,393,000	9,514,431		2/09/17		83,660		—
Japanese Yen	CITI	Sell	152,232,000	1,320,312		2/09/17		—		(162,168	)
Euro.	HSBK	Sell	7,662,000	8,621,589		2/10/17		11,783		—
Japanese Yen	CITI	Sell	613,483,000	6,028,191		2/10/17		53,609		—
Euro.	BZWS	Sell	23,553,000	26,989,383		2/13/17		518,939		—
Euro.	GSCO	Sell	1,183,000	1,346,964		2/13/17		17,429		—
Euro.	GSCO	Sell	6,210,000	7,081,698		2/16/17		101,457		—
Euro.	SCNY	Sell	6,873,000	7,831,302		2/16/17		105,829		—
Japanese Yen	GSCO	Sell	195,642,140	1,742,868		2/16/17		—		(163,034	)
Japanese Yen	JPHQ	Sell	100,450,000	993,242		2/16/17		14,680		—
Euro.	BZWS	Sell	1,403,000	1,576,060		2/22/17		—		(1,421	)

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Annual Report

TEMPLETON GLOBAL INCOME FUND
STATEMENT OF INVESTMENTS


Forward Exchange Contracts (continued)

					Contract		Settlement		Unrealized		Unrealized
Currency	Counterparty^aType			Quantity	Amount*		Date		Appreciation		Depreciation
OTC Forward Exchange Contracts (continued)
Mexican Peso		HSBK	Buy	21,920,000	1,179,224		2/23/17	$	—	$	(33,615	)
Japanese Yen		HSBK	Sell	796,744,000	7,194,639		2/27/17		—		(571,428	)
Mexican Peso		CITI	Buy	62,000,000	3,291,919		2/27/17		—		(52,883	)
Euro.		BOFA	Sell	1,471,272	1,640,586		2/28/17		—		(14,144	)
Japanese Yen		BZWS	Sell	726,500,000	7,164,906		2/28/17		83,154		—
Japanese Yen		JPHQ	Sell	304,127,000	2,999,576		2/28/17		35,017		—
Malaysian Ringgit		DBAB	Buy	71,195,440	15,390,946	EUR	2/28/17		—		(8,650	)
Mexican Peso		MSCO	Buy	117,000,000	6,279,014		3/01/17		—		(167,952	)
Japanese Yen		JPHQ	Sell	416,700,000	3,738,091		3/03/17		—		(324,443	)
Japanese Yen		HSBK	Sell	196,900,000	1,753,339		3/06/17		—		(166,601	)
Mexican Peso		HSBK	Buy	82,460,700	4,474,993		3/10/17		—		(172,122	)
Australian Dollar		JPHQ	Sell	8,540,000	6,225,660		3/17/17		—		(162,953	)
Japanese Yen		JPHQ	Sell	130,931,000	1,169,069		3/31/17		—		(109,298	)
Mexican Peso		CITI	Buy	21,365,740	1,169,431		4/07/17		—		(57,886	)
Japanese Yen		CITI	Sell	146,000,000	1,372,180		4/13/17		—		(54,290	)
South Korean Won.		HSBK	Sell	13,696,000,000	12,015,616		4/25/17		—		(257,539	)
South Korean Won.		HSBK	Sell	3,816,000,000	3,329,988		4/26/17		—		(89,593	)
Japanese Yen		BOFA	Sell	705,633,500	6,581,174		5/18/17		—		(325,839	)
Japanese Yen		CITI	Sell	705,604,100	6,577,679		5/18/17		—		(329,046	)
Japanese Yen		BOFA	Sell	704,526,000	6,544,598		5/19/17		—		(351,938	)
Japanese Yen		HSBK	Sell	707,007,200	6,567,647		5/19/17		—		(353,177	)
Japanese Yen		BOFA	Sell	706,440,000	6,537,757		5/22/17		—		(378,609	)
Japanese Yen		JPHQ	Sell	532,106,000	4,940,127		5/22/17		—		(269,431	)
Mexican Peso		JPHQ	Buy	39,025,000	2,049,579		5/30/17		—		(30,780	)
Japanese Yen		CITI	Sell	153,700,000	1,455,989		6/08/17		—		(50,182	)
Japanese Yen		CITI	Sell	230,997,000	2,215,607		6/16/17		—		(49,015	)
Japanese Yen		JPHQ	Sell	197,300,000	1,891,595		6/16/17		—		(42,672	)
Japanese Yen		DBAB	Sell	186,830,000	1,788,925		6/19/17		—		(42,997	)
Japanese Yen		CITI	Sell	207,460,000	2,021,289		6/20/17		—		(13,027	)
Japanese Yen		DBAB	Sell	187,160,000	1,818,500		6/22/17		—		(16,958	)
Japanese Yen		JPHQ	Sell	154,420,000	1,509,187		7/14/17		—		(7,011	)
Malaysian Ringgit		DBAB	Buy	9,759,000	2,166,837	EUR	7/20/17		—		(95,061	)
Japanese Yen		CITI	Sell	178,564,000	1,710,219		7/25/17		—		(44,093	)
Japanese Yen		DBAB	Sell	631,276,974	6,080,846		7/31/17		—		(123,201	)
Japanese Yen		DBAB	Sell	687,444,000	6,960,753		8/18/17		198,063		—
Japanese Yen		HSBK	Sell	1,286,140,000	13,044,016		8/22/17		388,922		—
Japanese Yen		JPHQ	Sell	926,943,000	9,401,664		8/22/17		280,923		—
Japanese Yen		BZWS	Sell	307,053,000	3,108,721		8/24/17		87,114		—
Japanese Yen		DBAB	Sell	303,441,000	3,076,621		8/24/17		90,559		—
Japanese Yen		JPHQ	Sell	800,079,000	8,098,580		8/28/17		223,546		—
Japanese Yen		DBAB	Sell	509,728,000	5,172,724		8/30/17		155,014		—
Japanese Yen		JPHQ	Sell	450,908,000	4,566,619		8/30/17		127,927		—
Japanese Yen		HSBK	Sell	980,688,000	9,738,709		9/01/17		83,861		—
Total Forward Exchange Contracts								$	7,459,170	$	(29,226,977	)
Net unrealized appreciation (depreciation)										$	(21,767,807	)

*In U.S. dollars unless otherwise indicated.
^aMay be comprised of multiple contracts with the same counterparty, currency and settlement date.

18 Annual Report

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TEMPLETON GLOBAL INCOME FUND
STATEMENT OF INVESTMENTS

At August 31, 2016, the Fund had the following interest rate swap contracts outstanding. See Note 1(c).


Interest Rate Swap Contracts
			Notional	Expiration		Unrealized		Unrealized
Description	Exchange		Amount	Date		Appreciation		Depreciation
Centrally Cleared Swap Contracts
Receive Floating rate 3-month USD BBA LIBOR
Pay Fixed rate 0.926%	LCH	$	58,090,000	10/17/17	$	—	$	(114,414	)
Receive Floating rate 3-month USD BBA LIBOR
Pay Fixed rate 1.914%	LCH		35,260,000	1/22/25		—		(1,554,557	)
Receive Floating rate 3-month USD BBA LIBOR
Pay Fixed rate 1.970%	LCH		44,070,000	1/23/25		—		(2,137,068	)
Receive Floating rate 3-month USD BBA LIBOR
Pay Fixed rate 1.973%	LCH		26,010,000	1/27/25		—		(1,266,655	)
Receive Floating rate 3-month USD BBA LIBOR
Pay Fixed rate 1.937%	LCH		6,500,000	1/29/25		—		(297,039	)
Receive Floating rate 3-month USD BBA LIBOR
Pay Fixed rate 1.942%	LCH		5,500,000	1/30/25		—		(252,657	)
Receive Floating rate 3-month USD BBA LIBOR
Pay Fixed rate 1.817%	LCH		8,680,000	2/03/25		—		(310,328	)
Receive Floating rate 3-month USD BBA LIBOR
Pay Fixed rate 1.978%	LCH		800,000	3/27/25		—		(44,540	)
Receive Floating rate 3-month USD BBA LIBOR
Pay Fixed rate 1.985%	LCH		800,000	3/27/25		—		(45,046	)
Receive Floating rate 3-month USD BBA LIBOR
Pay Fixed rate 2.449%	LCH		6,340,000	7/02/25		—		(581,236	)
Receive Floating rate 3-month USD BBA LIBOR
Pay Fixed rate 2.310%	LCH		16,220,000	7/29/25		—		(1,278,308	)
Receive Floating rate 3-month USD BBA LIBOR
Pay Fixed rate 2.752%	LCH		23,960,000	7/29/45		—		(6,188,749	)
Total Interest Rate Swap Contracts					$	—	$	(14,070,597	)
Net unrealized appreciation (depreciation)							$	(14,070,597	)

See Abbreviations on page 31.

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The accompanying notes are an integral part of these financial statements. | Annual Report 19

TEMPLETON GLOBAL INCOME FUND

Financial Statements

Statement of Assets and Liabilities
August 31, 2016


Assets:
Investments in securities:
Cost - Unaffiliated issuers	$	823,312,608
Cost - Non-controlled affiliates (Note 3c)		113,186,351
Total cost of investments	$	936,498,959
Value - Unaffiliated issuers	$	778,623,807
Value - Non-controlled affiliates (Note 3c)		113,186,351
Total value of investments		891,810,158
Cash.		2,170,000
Foreign currency, at value (cost $2,032,114)		2,023,514
Receivables:
Investment securities sold		26,314,496
Interest		13,371,314
Due from brokers		39,674,627
Variation margin		37,505
Unrealized appreciation on OTC forward exchange contracts		7,459,170
Total assets		982,860,784
Liabilities:
Payables:
Management fees		491,031
Unrealized depreciation on OTC forward exchange contracts		29,226,977
Deferred tax.		1,558,493
Accrued expenses and other liabilities.		392,901
Total liabilities		31,669,402
Net assets, at value	$	951,191,382
Net assets consist of:
Paid-in capital	$	1,023,418,867
Undistributed net investment income		9,720,435
Net unrealized appreciation (depreciation)		(81,947,920	)
Net assets, at value	$	951,191,382
Shares outstanding.		134,144,158
Net asset value per share	$	7.09

20 Annual Report | The accompanying notes are an integral part of these financial statements.

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		TEMPLETON GLOBAL INCOME FUND
		FINANCIAL STATEMENTS


Statement of Operations
for the year ended August 31, 2016

Investment income:
Interest (net of foreign taxes of $1,241,635)	$	42,095,605
Inflation principal adjustments		7,056,823
Total investment income		49,152,428
Expenses:
Management fees (Note 3a)		6,146,757
Transfer agent fees.		168,603
Custodian fees (Note 4)		426,132
Reports to shareholders		83,311
Registration and filing fees		131,447
Professional fees		110,218
Trustees’ fees and expenses		100,203
Other		119,651
Total expenses		7,286,322
Expense reductions (Note 4)		(8,857	)
Expenses waived/paid by affiliates (Note 3c)		(307,650	)
Net expenses		6,969,815
Net investment income.		42,182,613
Realized and unrealized gains (losses):
Net realized gain (loss) from:
Investments		(39,376,032	)
Foreign currency transactions		(31,176,901	)
Swap contracts.		(3,111,326	)
Net realized gain (loss)		(73,664,259	)
Net change in unrealized appreciation (depreciation) on:
Investments		68,006,150
Translation of other assets and liabilities
denominated in foreign currencies.		(17,073,522	)
Swap contracts.		(16,522,353	)
Change in deferred taxes on unrealized appreciation		(1,088,610	)
Net change in unrealized appreciation (depreciation)		33,321,665
Net realized and unrealized gain (loss)		(40,342,594	)
Net increase (decrease) in net assets resulting from operations	$	1,840,019

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The accompanying notes are an integral part of these financial statements. | Annual Report 21


TEMPLETON GLOBAL INCOME FUND
FINANCIAL STATEMENTS


Statements of Changes in Net Assets

		Year Ended August 31,
		2016			2015
Increase (decrease) in net assets:
Operations:
Net investment income	$	42,182,613		$	44,843,491
Net realized gain (loss)		(73,664,259	)		35,123,071
Net change in unrealized appreciation (depreciation)		33,321,665			(174,293,371		)
Net increase (decrease) in net assets resulting from operations		1,840,019			(94,326,809		)
Distributions to shareholders from:
Net investment income and net foreign currency gains		(14,394,453	)		(85,047,396		)
Net realized gains		(2,405,934	)		(348,775		)
Tax return of capital		(23,442,860	)			—
Total distributions to shareholders		(40,243,247	)		(85,396,171		)
Net increase (decrease) in net assets		(38,403,228	)		(179,722,980		)
Net assets:
Beginning of year		989,594,610			1,169,317,590
End of year	$	951,191,382		$	989,594,610
Undistributed net investment income included in net assets:
End of year	$	9,720,435			$	—
Distributions in excess of net investment income included in net assets:
End of year	$	—		$	(10,728,258		)

22 Annual Report | The accompanying notes are an integral part of these financial statements.

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TEMPLETON GLOBAL INCOME FUND

Notes to Financial Statements

1. Organization and Significant Accounting Policies

Templeton Global Income Fund (Fund) is registered under the Investment Company Act of 1940 (1940 Act) as a closed-end management investment company and applies the specialized accounting and reporting guidance in U.S. Generally Accepted Accounting Principles (U.S. GAAP).

As approved by the Fund’s Board of Trustees (the Board) at a meeting held on July 13, 2016, the Fund’s fiscal year-end will be changed to December 31st. As a result, the Fund will experience a shortened fiscal year covering the transitional period between the Fund’s current fiscal year end and December 31, 2016.

The following summarizes the Fund’s significant accounting policies.

a. Financial Instrument Valuation

The Fund’s investments in financial instruments are carried at fair value daily. Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants on the measurement date. The Fund calculates the net asset value (NAV) per share as of 4 p.m. Eastern time each day the New York Stock Exchange (NYSE) is open for trading. Under compliance policies and procedures approved by the the Board, the Fund’s administrator has responsibility for oversight of valuation, including leading the cross-functional Valuation Committee (VC). The VC provides administration and oversight of the Fund’s valuation policies and procedures, which are approved annually by the Board. Among other things, these procedures allow the Fund to utilize independent pricing services, quotations from securities and financial instrument dealers, and other market sources to determine fair value.

Debt securities generally trade in the over-the-counter (OTC) market rather than on a securities exchange. The Fund’s pricing services use multiple valuation techniques to determine fair value. In instances where sufficient market activity exists, the pricing services may utilize a market-based approach through which quotes from market makers are used to determine fair value. In instances where sufficient market activity may not exist or is limited, the pricing services also utilize proprietary valuation models which may consider market characteristics such as benchmark yield curves, credit spreads, estimated default rates, anticipated market interest rate volatility, coupon

rates, anticipated timing of principal repayments, underlying collateral, and other unique security features in order to estimate the relevant cash flows, which are then discounted to calculate the fair value. Securities denominated in a foreign currency are converted into their U.S. dollar equivalent at the foreign exchange rate in effect at 4 p.m. Eastern time on the date that the values of the foreign debt securities are determined.

Investments in open-end mutual funds are valued at the closing NAV.

Derivative financial instruments listed on an exchange are valued at the official closing price of the day. Certain derivative financial instruments trade in the OTC market. The Fund’s pricing services use various techniques including industry standard option pricing models and proprietary discounted cash flow models to determine the fair value of those instruments. The Fund’s net benefit or obligation under the derivative contract, as measured by the fair value of the contract, is included in net assets.

The Fund has procedures to determine the fair value of financial instruments for which market prices are not reliable or readily available. Under these procedures, the VC convenes on a regular basis to review such financial instruments and considers a number of factors, including significant unobservable valuation inputs, when arriving at fair value. The VC primarily employs a market-based approach which may use related or comparable assets or liabilities, recent transactions, market multiples, book values, and other relevant information for the investment to determine the fair value of the investment. An income-based valuation approach may also be used in which the anticipated future cash flows of the investment are discounted to calculate fair value. Discounts may also be applied due to the nature or duration of any restrictions on the disposition of the investments. Due to the inherent uncertainty of valuations of such investments, the fair values may differ significantly from the values that would have been used had an active market existed. The VC employs various methods for calibrating these valuation approaches including a regular review of key inputs and assumptions, transactional back-testing or disposition analysis, and reviews of any related market activity.

b. Foreign Currency Translation

Portfolio securities and other assets and liabilities denominated in foreign currencies are translated into U.S. dollars based on the exchange rate of such currencies against U.S. dollars on the

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Annual Report

TEMPLETON GLOBAL INCOME FUND

NOTES TO FINANCIAL STATEMENTS

1. Organization and Significant Accounting

Policies (continued)

b. Foreign Currency Translation (continued)

date of valuation. The Fund may enter into foreign currency exchange contracts to facilitate transactions denominated in a foreign currency. Purchases and sales of securities, income and expense items denominated in foreign currencies are translated into U.S. dollars at the exchange rate in effect on the transaction date. Portfolio securities and assets and liabilities denominated in foreign currencies contain risks that those currencies will decline in value relative to the U.S. dollar. Occasionally, events may impact the availability or reliability of foreign exchange rates used to convert the U.S. dollar equivalent value. If such an event occurs, the foreign exchange rate will be valued at fair value using procedures established and approved by the Board.

The Fund does not separately report the effect of changes in foreign exchange rates from changes in market prices on securities held. Such changes are included in net realized and unrealized gain or loss from investments in the Statement of Operations.

Realized foreign exchange gains or losses arise from sales of foreign currencies, currency gains or losses realized between the trade and settlement dates on securities transactions and the difference between the recorded amounts of dividends, interest, and foreign withholding taxes and the U.S. dollar equivalent of the amounts actually received or paid. Net unrealized foreign exchange gains and losses arise from changes in foreign exchange rates on foreign denominated assets and liabilities other than investments in securities held at the end of the reporting period.

c. Derivative Financial Instruments

The Fund invested in derivative financial instruments in order to manage risk or gain exposure to various other investments or markets. Derivatives are financial contracts based on an underlying or notional amount, require no initial investment or an initial net investment that is smaller than would normally be required to have a similar response to changes in market factors, and require or permit net settlement. Derivatives contain various risks including the potential inability of the counterparty to fulfill their obligations under the terms of the contract, the potential for an illiquid secondary market, and/or the potential for market movements which expose the Fund to gains or losses in excess of the amounts shown in the Statement of Assets and

Liabilities. Realized gain and loss and unrealized appreciation and depreciation on these contracts for the period are included in the Statement of Operations.

Derivative counterparty credit risk is managed through a formal evaluation of the creditworthiness of all potential counter-parties. The Fund attempts to reduce its exposure to counterparty credit risk on OTC derivatives, whenever possible, by entering into International Swaps and Derivatives Association (ISDA) master agreements with certain counterparties. These agreements contain various provisions, including but not limited to collateral requirements, events of default, or early termination. Termination events applicable to the counterparty include certain deteriorations in the credit quality of the counterparty. Termination events applicable to the Fund include failure of the Fund to maintain certain net asset levels and/or limit the decline in net assets over various periods of time. In the event of default or early termination, the ISDA master agreement gives the non-defaulting party the right to net and close-out all transactions traded, whether or not arising under the ISDA agreement, to one net amount payable by one counterparty to the other. However, absent an event of default or early termination, OTC derivative assets and liabilities are presented gross and not offset in the Statement of Assets and Liabilities. Early termination by the counterparty may result in an immediate payment by the Fund of any net liability owed to that counterparty under the ISDA agreement.

Collateral requirements differ by type of derivative. Collateral or initial margin requirements are set by the broker or exchange clearing house for exchange traded and centrally cleared derivatives. Initial margin deposited is held at the exchange and can be in the form of cash and/or securities. For OTC derivatives traded under an ISDA master agreement, posting of collateral is required by either the Fund or the applicable counterparty if the total net exposure of all OTC derivatives with the applicable counterparty exceeds the minimum transfer amount, which typically ranges from $100,000 to $250,000, and can vary depending on the counterparty and the type of the agreement. Generally, collateral is determined at the close of Fund business each day and any additional collateral required due to changes in derivative values may be delivered by the Fund or the counterparty within a few business days. Collateral pledged and/or received by the Fund for OTC derivatives, if any, is held in segregated accounts with the Fund’s custodian/counterparty broker and can be in the form of cash and/or securities. Unrestricted cash may be invested according

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NOTES TO FINANCIAL STATEMENTS

to the Fund’s investment objectives. To the extent that the amounts due to the Fund from its counterparties are not subject to collateralization or are not fully collateralized, the Fund bears the risk of loss from counterparty non-performance.

The Fund entered into OTC forward exchange contracts primarily to manage and/or gain exposure to certain foreign currencies. A forward exchange contract is an agreement between the Fund and a counterparty to buy or sell a foreign currency at a specific exchange rate on a future date.

The Fund entered into interest rate swap contracts primarily to manage interest rate risk. An interest rate swap is an agreement between the Fund and a counterparty to exchange cash flows based on the difference between two interest rates, applied to a notional amount. These agreements may be privately negotiated in the over-the-counter market (OTC interest rate swaps) or may be executed on a registered exchange (centrally cleared interest rate swaps). For centrally cleared interest rate swaps, required initial margins are pledged by the Fund, and the daily change in fair value is accounted for as a variation margin payable or receivable in the Statement of Assets and Liabilities. Over the term of the contract, contractually required payments to be paid and to be received are accrued daily and recorded as unrealized depreciation and appreciation until the payments are made, at which time they are realized.

The Fund invests in value recovery instruments (VRI) primarily to gain exposure to growth risk. Periodic payments from VRI are dependent on established benchmarks for underlying variables. VRI has a notional amount, which is used to calculate amounts of payments to holders. Payments are recorded upon receipt as realized gains in the Statement of Operations. The risks of investing in VRI include growth risk, liquidity, and the potential loss of investment.

See Note 9 regarding other derivative information.

d. Income and Deferred Taxes

It is the Fund’s policy to qualify as a regulated investment company under the Internal Revenue Code. The Fund intends to distribute to shareholders substantially all of its taxable income and net realized gains to relieve it from federal income and excise taxes. As a result, no provision for U.S. federal income taxes is required.

The Fund may be subject to foreign taxation related to income received, capital gains on the sale of securities and certain foreign currency transactions in the foreign jurisdictions in which it invests. Foreign taxes, if any, are recorded based on the tax regulations and rates that exist in the foreign markets in which the Fund invests. When a capital gain tax is determined to apply, the Fund records an estimated deferred tax liability in an amount that would be payable if the securities were disposed of on the valuation date.

The Fund may recognize an income tax liability related to its uncertain tax positions under U.S. GAAP when the uncertain tax position has a less than 50% probability that it will be sustained upon examination by the tax authorities based on its technical merits. As of August 31, 2016, the Fund has determined that no tax liability is required in its financial statements related to uncertain tax positions for any open tax years (or expected to be taken in future tax years). Open tax years are those that remain subject to examination and are based on each tax jurisdiction’s statute of limitation.

e. Security Transactions, Investment Income, Expenses and Distributions

Security transactions are accounted for on trade date. Realized gains and losses on security transactions are determined on a specific identification basis. Interest income and estimated expenses are accrued daily. Amortization of premium and accretion of discount on debt securities are included in interest income. Distributions to shareholders are recorded on the ex-dividend date and are determined according to income tax regulations (tax basis). Distributable earnings determined on a tax basis may differ from earnings recorded in accordance with U.S. GAAP. These differences may be permanent or temporary. Permanent differences are reclassified among capital accounts to reflect their tax character. These reclassifications have no impact on net assets or the results of operations. Temporary differences are not reclassified, as they may reverse in subsequent periods.

Inflation-indexed bonds are adjusted for inflation through periodic increases or decreases in the security’s interest accruals, face amount, or principal redemption value, by amounts corresponding to the rate of inflation as measured by an index. Any increase or decrease in the face amount or principal redemption value will be included as inflation principal adjustments in the Statement of Operations.

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NOTES TO FINANCIAL STATEMENTS

1. Organization and Significant Accounting

Policies (continued)

f. Accounting Estimates

The preparation of financial statements in accordance with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the financial statements and the amounts of income and expenses during the reporting period. Actual results could differ from those estimates.

g. Guarantees and Indemnifications

Additionally, in the normal course of business, the Fund enters into contracts with service providers that contain general indemnification clauses. The Fund’s maximum exposure under these arrangements is unknown as this would involve future claims that may be made against the Fund that have not yet occurred. Currently, the Fund expects the risk of loss to be remote.

Under the Fund’s organizational documents, its officers and trustees are indemnified by the Fund against certain liabilities arising out of the performance of their duties to the Fund.

2. Shares of Beneficial Interest

At August 31, 2016, there were an unlimited number of shares authorized (without par value). During the year ended August 31, 2016 and August, 31 2015 there were no shares issued; all reinvested distributions were satisfied with previously issued shares purchased in the open market.

Under the Board approved open-market share repurchase program, the Fund may purchase, from time to time, Fund shares in open-market transactions, at the discretion of management. Since the inception of the program, the Fund has repurchased a total of 11,210,400 shares. During the year ended August 31, 2016 and August 31, 2015, there were no shares repurchased.

3. Transactions with Affiliates

Franklin Resources, Inc. is the holding company for various subsidiaries that together are referred to as Franklin Templeton Investments. Certain officers and trustees of the Fund are also officers and/or directors of the following subsidiaries:


Subsidiary	Affiliation
Franklin Advisers, Inc. (Advisers)	Investment manager
Franklin Templeton Services, LLC (FT Services)	Administrative manager

a. Management Fees

The Fund pays an investment management fee to Advisers based on the average daily net assets of the Fund as follows:


Annualized Fee Rate		Net Assets
0.700	%	Up to and including $200 million
0.635	%	Over $200 million, up to and including $700 million
0.600	%	Over $700 million, up to and including $1 billion
0.580	%	Over $1 billion, up to and including $5 billion
0.560	%	Over $5 billion, up to and including $10 billion
0.540	%	Over $10 billion, up to and including $15 billion
0.520	%	Over $15 billion, up to and including $20 billion
0.500	%	In excess of $20 billion

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NOTES TO FINANCIAL STATEMENTS

For the year ended August 31, 2016, the annualized effective management fee rate was 0.639% of the Fund’s average daily net assets.

b. Administrative Fees

Under an agreement with Advisers, FT Services provides administrative services to the Fund. The fee is paid by Advisers based on the Fund’s average daily net assets, and is not an additional expense of the Fund.

c. Investments in Affiliated Management Investment Companies

The Fund invests in one or more affiliated management investment companies for purposes other than exercising a controlling influence over the management or policies. Management fees paid by the Fund are waived on assets invested in the affiliated management investment companies, as noted in the Statement of Operations, in an amount not to exceed the management and administrative fees paid directly or indirectly by each affiliate. Prior to September 1, 2013, the waiver was accounted for as a reduction to management fees.


										% of
										Affiliated
	Number of				Number of					Fund Shares
	Shares Held				Shares		Value			Outstanding
	at Beginning	Gross	Gross		Held at End		at End	Investment	Realized	Held at End
	of Year	Additions	Reductions		of Year		of Year	Income	Gain (Loss)	of Year

Non-Controlled Affiliates
Institutional Fiduciary Trust Money
Market Portfolio	102,398,725	453,038,126	(442,250,500	)	113,186,351	$	113,186,351	$-	$-	0.7	%

4. Expense Offset Arrangement

The Fund has entered into an arrangement with its custodian whereby credits realized as a result of uninvested cash balances are used to reduce a portion of the Fund’s custodian expenses. During the year ended August 31, 2016, the custodian fees were reduced as noted in the the Statement of Operations.

5. Income Taxes

The tax character of distributions paid during the years ended August 31, 2016 and 2015, was as follows:


		2016		2015
Distributions paid from:
Ordinary income	$	14,394,453	$	85,396,171
Long term capital gain		2,405,934		—
	$	16,800,387	$	85,396,171
Return of capital.		23,442,860		—
	$	40,243,247	$	85,396,171

Due to fluctuations in foreign currency, a portion of the distributions paid for the year ended August 31, 2016 is determined to be a return of capital for federal income tax purposes.

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TEMPLETON GLOBAL INCOME FUND
NOTES TO FINANCIAL STATEMENTS

5. Income Taxes (continued)

At August 31, 2016, the cost of investments, net unrealized appreciation (depreciation), undistributed ordinary income and undistributed long term capital gains for income tax purposes were as follows:


Cost of investments	$	947,312,188

Unrealized appreciation	$	28,350,964
Unrealized depreciation		(83,852,994	)
Net unrealized appreciation (depreciation)	$	(55,502,030	)

Differences between income and/or capital gains as determined on a book basis and a tax basis are primarily due to differing treatment of foreign currency transactions.

6. Investment Transactions

Purchases and sales of investments (excluding short term securities) for the year ended August 31, 2016, aggregated $344,877,978 and $381,901,111, respectively.

7. Credit Risk

At August 31, 2016, the Fund had 26.0% of its portfolio invested in high yield securities rated below investment grade. These securities may be more sensitive to economic conditions causing greater price volatility and are potentially subject to a greater risk of loss due to default than higher rated securities.

8. Concentration of Risk

Investing in foreign securities may include certain risks and considerations not typically associated with investing in U.S. securities, such as fluctuating currency values and changing local and regional economic, political and social conditions, which may result in greater market volatility. In addition, certain foreign securities may not be as liquid as U.S. securities.

9. Other Derivative Information

At August 31, 2016, the Fund’s investments in derivative contracts are reflected in the Statement of Assets and Liabilities as follows:


	Asset Derivatives			Liability Derivatives
Derivative Contracts
Not Accounted for as	Statement of Assets and			Statement of Assets and
Hedging Instruments	Liabilities Location		Fair Value	Liabilities Location		Fair Value
Interest rate contracts	Variation margin	$	—^a	Variation margin	$	14,070,597	^a
Foreign exchange	Unrealized appreciation on OTC		7,459,170	Unrealized depreciation on OTC		29,226,977
contracts	swap contracts			swap contracts
Value recovery instruments	Investments in securities, at value		3,603,913
Totals			11,063,083			43,297,574

^aThis amount reflects the cumulative appreciation (depreciation) of centrally cleared swap contracts as reported in the Statement of Investments. Only the variation margin receivable/payable at year end is separately reported within the Statement of Assets and Liabilities. Prior variation margin movements were recorded to cash upon receipt or payment.

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NOTES TO FINANCIAL STATEMENTS

For the year ended August 31, 2016, the effect of derivative contracts in the Fund’s Statement of Operations was as follows:


							Net Change in
							Unrealized
Derivative Contacts			Net Realized				Appreciation
Not Accounted for as	Statement of		Gain (Loss) for		Statement of		(Depreciation)
Hedging Instruments	Operations Locations		the Period		Operations Locations		for the Period

	Net realized gain (loss) from:				Net change in unrealized
					appreciation (depreciation) on:
Interest rate contracts	Swap contracts	$	(3,111,326	)	Swap contracts	$	(16,522,353	)
Foreign exchange contracts	Foreign currency transactions		(28,577,638	)^a	Translation of other assets and		(17,626,306	)^a
					liabilities denominated in
					foreign currencies
Value recovery instruments	Value recovery instruments		—		Value recovery instruments		(801,917	)
Totals		$	(31,688,964	)		$	(34,950,576	)

^aForward exchange contracts are included in net realized gain (loss) from foreign currency transactions and net change in unrealized appreciation (depreciation) on translation of other assets and liabilities denominated in foreign currencies in the Statement of Operations.

For the year ended August 31, 2016, the average month end fair value of derivatives represented 6.0% of average month end net assets. The average month end number of open derivative contracts for the year was 292.

At August 31, 2016, the Fund’s OTC derivative assets and liabilities are as follows:


		Gross Amounts of
		Assets and Liabilities Presented
		in the Statement of Assets and Liabilities
		Assets^a		Liabilities^a
Derivatives
Forward exchange contracts	$	7,459,170	$	29,226,977

^aAbsent an event of default or early termination, OTC derivative assets and liabilities are presented gross and not offset in the Statement of Assets and Liabilities.

At August 31, 2016, the Fund’s OTC derivative assets, which may be offset against the Fund’s OTC derivative liabilities and collateral received from the counterparty, are as follows:


				Amounts Not Offset in the
				Statement of Assets and Liabilities
		Gross
		Amounts of		Financial		Financial
		Assets Presented in		Instruments		Instruments		Cash			Net Amount
		the Statement of		Available for		Collateral		Collateral			(Not less
		Assets and Liabilities		Offset		Received		Received			than zero)
Counterparty
BOFA	$	95,892	$	(95,892	)	$	—	$	—	$	—
BZWS.		1,044,117		(1,044,117	)		—		—		—
CITI		315,209		(315,209	)		—		—		—
DBAB		2,908,425		(2,908,425	)		—		—		—
GSCO		456,081		(413,817	)		—		—		42,264
HSBK		811,419		(811,419	)		—		—		—
JPHQ		1,267,505		(1,267,505	)		—		—		—
MSCO		189,206		(189,206	)		—		—		—
SCNY		242,331		(242,331	)		—		—		—
UBSW		128,985		—			—		—		128,985
Total	$	7,459,170	$	(7,287,921	)	$	—	$	—	$	171,249

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NOTES TO FINANCIAL STATEMENTS


9. Other Derivative Information (continued)


				Amounts Not Offset in the
				Statement of Assets and Liabilities
		Gross
		Amounts of		Financial		Financial
		Liabilities Presented in		Instruments		Instruments			Cash			Net Amount
		the Statement of		Available for		Collateral			Collateral			(Not less
		Assets and Liabilities		Offset		Pledged			Pledged^a			than zero)
Counterparty
BOFA	$	1,704,028	$	(95,892	)	$	—	$	(1,608,136	)	$	—
BZWS		1,345,564		(1,044,117	)		—		(301,447	)		—
CITI		7,478,581		(315,209	)		—		(7,163,372	)		—
DBAB		3,943,384		(2,908,425	)		—		(190,000	)		844,959
GSCO		413,817		(413,817	)		—		—			—
HSBK		8,867,413		(811,419	)		—		(8,055,994	)		—
JPHQ		3,510,680		(1,267,505	)		—		(2,243,175	)		—
MSCO		1,436,761		(189,206	)		—		(1,000,000	)		247,555
SCNY.		526,749		(242,331	)		—		(284,418	)		—
UBSW		—		—			—		—			—
Total	$	29,226,977	$	(7,287,921	)	$	—	$	(20,846,542	)	$	1,092,514

^aIn some instances, the collateral amounts disclosed in the table above were adjusted due to the requirement to limit collateral amounts to avoid the effect of overcollateral-ization. Actual collateral received and/or pledged may be more than the amounts disclosed herein.

See Note 1(c) regarding derivative financial instruments.

See Abbreviations on page 31.

10. Fair Value Measurements

The Fund follows a fair value hierarchy that distinguishes between market data obtained from the independent sources (observable inputs) and the Fund’s own market assumptions (unobservable inputs). These inputs are used in determining the value of the Fund’s financial instruments and are summarized in the following fair value hierarchy:

Level 1 – quoted prices in active markets for identical financial instruments
Level 2 – other significant observable inputs (including quoted prices for similar financial instruments, interest rates, prepayment speed, credit risk, etc.)
Level 3 – significant unobservable inputs (including the Fund’s own assumptions in determining the fair value of financial instruments)

The input levels are not necessarily an indication of the risk or liquidity associated with financial instruments at that level.

For movements between the levels within the fair value hierarchy, the Fund has adopted a policy of recognizing the transfers as of the date of the underlying event which caused the movement.

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NOTES TO FINANCIAL STATEMENTS

A summary of inputs used as of August 31, 2016, in valuing the Fund’s assets and liabilities carried at fair value, is as follows:


		Level 1		Level 2		Level 3		Total
Assets:
Investments in Securities:
Foreign Government and Agency Securities^a	$	—	$	741,640,525	$	—	$	741,640,525
Short Term Investments		113,186,351		36,983,282		—		150,169,633
Total Investments in Securities	$	113,186,351	$	778,623,807	$	—	$	891,810,158

Other Financial Instruments:
Forward Exchange Contracts	$	—	$	7,459,170	$	—	$	7,459,170

Liabilities:
Other Financial Instruments:
Forward Exchange Contracts	$	—	$	29,226,977	$	—	$	29,226,977
Swap Contracts.		—		14,070,597		—		14,070,597
Total Other Financial Instruments	$	—	$	43,297,574	$	—	$	43,297,574

^aFor detailed categories, see the accompanying Statement of Investments.

11. Subsequent Events

The Fund has evaluated subsequent events through the issuance of the financial statements and determined that no events have occurred that require disclosure.


Abbreviations

Counterparty/Exchange		Currency		Selected Portfolio
BOFA	Bank of America Corp.	AUD	Australian Dollar	BBA	British Bankers Association
BZWS	Barclays Bank PLC	BRL	Brazilian Real	FRN	Floating Rate Note
CITI	Citibank, N.A.	COP	Colombian Peso	GDP	Gross Domestic Product
DBAB	Deutsche Bank AG	EUR	Euro	LIBOR	London InterBank Offered Rate
GSCO	Goldman Sachs Group, Inc.	IDR	Indonesian Rupiah	VRI	Value Recovery Instruments
HSBK	HSBC Bank PLC	INR	Indian Rupee
JPHQ	JPMorgan Chase Bank, N.A.	KRW	South Korean Won
LCH	LCH Clearnet LLC	LKR	Sri Lankan Rupee
MSCO	Morgan Stanley and Co. Inc.	MXN	Mexican Peso
SCNY	Standard Chartered Bank	MYR	Malaysian Ringgit
UBSW	UBS AG	PEN	Peruvian Nuevo Sol
		PHP	Philippine Peso
		PLN	Polish Zloty

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TEMPLETON GLOBAL INCOME FUND

Report of Independent Registered Public Accounting Firm

To the Board of Trustees and Shareholders of Templeton Global Income Fund

In our opinion, the accompanying statement of assets and liabilities, including the statement of investments, and the related statements of operations and of changes in net assets and the financial highlights present fairly, in all material respects, the financial position of Templeton Global Income Fund (the "Fund") at August 31, 2016, the results of its operations for the year then ended, the changes in its net assets for each of the two years in the period then ended and the financial highlights for each of the five years in the period then ended, in conformity with accounting principles generally accepted in the United States of America. These financial statements and financial highlights (hereafter referred to as "financial statements") are the responsibility of the Fund’s management. Our responsibility is to express an opinion on these financial statements based on our audits. We conducted our audits of these financial statements in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements, assessing the accounting principles used and significant estimates made by management, and evaluating the overall financial statement presentation. We believe that our audits, which included confirmation of securities at August 31, 2016 by correspondence with the custodian, transfer agent and brokers, provide a reasonable basis for our opinion.

PricewaterhouseCoopers LLP

San Francisco, California
October 19, 2016

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Tax Information (unaudited)

Under Section 852(b)(3)(C) of the Internal Revenue Code (Code), the Fund hereby reports the maximum amount allowable but no less than $2,405,934 as a long term capital gain dividend for the fiscal year ended August 31, 2016.

At August 31, 2016, more than 50% of the Fund’s total assets were invested in securities of foreign issuers. In most instances, foreign taxes were withheld from income paid to the Fund on these investments. As shown in the table below, the Fund hereby reports to shareholders the foreign source income and foreign taxes paid, pursuant to Section 853 of the Code. This written statement will allow shareholders of record on August 17, 2016, to treat their proportionate share of foreign taxes paid by the Fund as having been paid directly by them. The shareholder shall consider these amounts as foreign taxes paid in the tax year in which they receive the Fund distribution.

The following table provides a detailed analysis of foreign tax paid, foreign source income, and foreign source qualified dividends as reported by the Fund to shareholders of record.


	Foreign Tax Paid		Foreign Source		Foreign Source Qualified
	Per Share		Income Per Share		Dividends Per Share

$	0.0087	$	0.3634	$	0.0000

Foreign Tax Paid Per Share (Column 1) is the amount per share available to you, as a tax credit (assuming you held your shares in the Fund for a minimum of 16 days during the 31-day period beginning 15 days before the ex-dividend date of the Fund’s distribution to which the foreign taxes relate), or, as a tax deduction.

Foreign Source Income Per Share (Column 2) is the amount per share of income dividends attributable to foreign securities held by the Fund, plus any foreign taxes withheld on these dividends. The amounts reported include foreign source qualified dividends that have not been adjusted for the rate differential applicable to such dividend income.¹

Foreign Source Qualified Dividends Per Share (Column 3) is the amount per share of foreign source qualified dividends, plus any foreign taxes withheld on these dividends. These amounts represent the portion of the Foreign Source Income reported to you in column 2 that were derived from qualified foreign securities held by the Fund.¹

By mid-February 2017, shareholders will receive Form 1099-DIV which will include their share of taxes paid and foreign source income distributed during the calendar year 2016. The Foreign Source Income reported on Form 1099-DIV has not been adjusted for the rate differential on foreign source qualified dividend income. Shareholders are advised to check with their tax advisors for information on the treatment of these amounts on their 2016 individual income tax returns.

¹Qualified dividends are taxed at reduced long term capital gains tax rates. In determining the amount of foreign tax credit that may be applied against the U.S. tax liability of individuals receiving foreign source qualified dividends, adjustments may be required to the foreign tax credit limitation calculation to reflect the rate differential applicable to such dividend income. The rules however permit certain individuals to elect not to apply the rate differential adjustments for capital gains and/or dividends for any taxable year. Please consult your tax advisor and the instructions to Form 1116 for more information.

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TEMPLETON GLOBAL INCOME FUND

Annual Meeting of Shareholders

The Annual Meeting of Shareholders of Templeton Global Income Fund (the “Fund”) was held at the Fund’s offices, 300 S.E. 2nd Street, Fort Lauderdale, Florida, on March 1, 2016. The purpose of the meeting was to elect four Trustees of the Fund and to ratify the selection of PricewaterhouseCoopers LLP as the independent registered public accounting firm for the Fund for the fiscal year ending August 31, 2016. At the meeting, the following persons were elected by the shareholders to serve as Trustees of the Fund: Frank J. Crothers, Larry D. Thompson, Rupert H. Johnson, Jr. and Gregory E. Johnson.* Shareholders also ratified the selection of PricewaterhouseCoopers LLP as the independent registered public accounting firm for the Fund for the fiscal year ending August 31, 2016. No other business was transacted at the meeting with respect to the Fund.


The results of the voting at the Annual Meeting are as follows:

1. Election of four Trustees:
		% of		% of Shares			% of		% of Shares
		Outstanding		Present and			Outstanding		Present and
Term Expiring 2019	For	Shares		Voting		Withheld	Shares		Voting
Frank J. Crothers	113,135,585	84.34	%	97.45	%	2,961,004	2.21	%	2.55	%
Larry D. Thompson	113,156,217	84.35	%	97.47	%	2,940,372	2.19	%	2.53	%
Rupert H. Johnson, Jr.	112,814,610	84.10	%	97.17	%	3,281,979	2.45	%	2.83	%
Gregory E. Johnson	113,157,527	84.36	%	97.47	%	2,939,062	2.19	%	2.53	%

There were no broker non-votes received with respect to this item.

2. Ratification of the selection of PricewaterhouseCoopers LLP as the independent registered public accounting firm for the Fund for the fiscal year ending August 31, 2016:


		% of		% of Shares
	Shares	Outstanding		Present and
	Voted	Shares		Voting
For	113,356,392	84.50	%	99.22	%
Against	890,550	0.66	%	0.78	%
Abstain	1,849,647	1.38	%	N/A
Total	116,096,589	86.54	%	100.00	%

*Harris J. Ashton, Ann Torre Bates, Edith E. Holiday, J. Michael Luttig, David W. Niemiec, Frank A. Olson, Constantine D. Tseretopoulos and Robert E. Wade are Trustees of the Fund who are currently serving and whose terms of office continued after the Annual Meeting of Shareholders. Frank J. Crothers subsequently retired from the Fund’s Board of Trustees effective May 13, 2016.

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TEMPLETON GLOBAL INCOME FUND

Dividend Reinvestment and Cash Purchase Plan

The Fund offers a Dividend Reinvestment and Cash Purchase Plan (the “Plan”) with the following features:

Shareholders must affirmatively elect to participate in the Plan. If you decide to use this service, dividends and capital gains distributions will be reinvested automatically in shares of the Fund for your account.

Whenever the Fund declares dividends in either cash or shares of the Fund, if the market price is equal to or exceeds net asset value at the valuation date, the participant will receive the dividends entirely in new shares at a price equal to the net asset value, but not less than 95% of the then current market price of the Fund’s shares. If the market price is lower than net asset value or if dividends and/or capital gains distributions are payable only in cash, the participant will receive shares purchased on the New York Stock Exchange or otherwise on the open market.

A participant has the option of submitting additional cash payments to the Plan Administrator, in any amounts of at least $100, up to a maximum of $5,000 per month, for the purchase of Fund shares for his or her account. These payments can be made by check payable to American Stock Transfer and Trust Company LLC (the “Plan Administrator”) and sent to American Stock Transfer and Trust Company LLC, P.O. Box 922, Wall Street Station, New York, NY 10269-0560, Attention: Templeton Global Income Fund. The Plan Administrator will apply such payments (less a $5.00 service charge and less a pro rata share of trading fees) to purchases of Fund shares on the open market.

The automatic reinvestment of dividends and/or capital gains does not relieve the participant of any income tax that may be payable on dividends or distributions.

Whenever shares are purchased on the New York Stock Exchange or otherwise on the open market, each participant will pay a pro rata portion of trading fees. Trading fees will be deducted from amounts to be invested. The Plan Administrator’s fee for a sale of shares through the Plan is $15.00 per transaction plus a $0.12 per share trading fee.

A participant may withdraw from the Plan without penalty at any time by written notice to the Plan Administrator sent to American Stock Transfer and Trust Company LLC, P.O. Box 922, Wall Street Station, New York, NY 10269-0560. Upon withdrawal, the participant will receive, without charge, share certificates issued in the participant’s name for all full shares held by the Plan Administrator; or, if the participant wishes, the Plan Administrator will sell the participant’s shares and send the proceeds to the participant, less a service charge of $15.00 and less trading fees of $0.12 per share. The Plan Administrator will convert any fractional shares held at the time of withdrawal to cash at current market price and send a check to the participant for the net proceeds.

For more information, please see the Plan’s Terms and Conditions located at the back of this report.

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Annual Report

TEMPLETON GLOBAL INCOME FUND

Transfer Agent

American Stock Transfer and Trust Company LLC
P.O. Box 922, Wall Street Station
New York, NY 10269-0560

(800) 416-5585
www.amstock.com

Direct Deposit Service for Registered Shareholders

Cash distributions can now be electronically credited to a checking or savings account at any financial institution that participates in the Automated Clearing House (“ACH”) system. The Direct Deposit service is provided for registered shareholders at no charge. To enroll in the service, access your account online by going www.amstock.com or dial (800) 416-5585 (toll free) and follow the instructions. Direct Deposit will begin with the next scheduled distribution payment date following enrollment in the service.

Direct Registration

If you are a registered shareholder of the Fund, purchases of shares of the Fund can be electronically credited to your Fund account at American Stock Transfer and Trust Company LLC through Direct Registration. This service provides shareholders with a convenient way to keep track of shares through book-entry transactions, electronically move book-entry shares between broker-dealers, transfer agents and DRS eligible issuers, and eliminate the possibility of lost certificates. For additional information, please contact American Stock Transfer and Trust Company LLC at (800) 416-5585.

Shareholder Information

Shares of Templeton Global Income Fund are traded on the New York Stock Exchange under the symbol “GIM.” Information about the net asset value and the market price is published each Monday in the Wall Street Journal, weekly in Barron’s and each Saturday in The New York Times and other newspapers. Daily market prices for the Fund’s shares are published in the “New York Stock Exchange Composite Transactions” section of newspapers.

For current information about distributions and shareholder accounts, call (800) 416-5585. Registered shareholders can access their Fund account on-line. For information go to American Stock Transfer and Trust Company LLC’s web site at www.amstock.com and follow the instructions.

The daily closing net asset value as of the previous business day may be obtained when available by calling Franklin Templeton Fund Information after 7 a.m. Pacific time any business day at (800) DIAL BEN/342-5236. The Fund’s net asset value and dividends are also listed on the NASDAQ Stock Market, Inc.’s Mutual Fund Quotation Service (“NASDAQ MFQS”).

Shareholders not receiving copies of reports to shareholders because their shares are registered in the name of a broker or a custodian can request that they be added to the Fund’s mailing list by writing Templeton Global Income Fund, 100 Fountain Parkway, P.O. Box 33030, St. Petersburg, FL, 33733-8030.

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TEMPLETON GLOBAL INCOME FUND

Board Members and Officers

The name, year of birth and address of the officers and board members, as well as their affiliations, positions held with the Trust, principal occupations during at least the past five years and number of U.S. registered portfolios overseen in the Franklin Templeton Investments fund complex, are shown below. Generally, each board member serves until that person’s successor is elected and qualified.


Independent Board Members

			Number of Portfolios in
Name, Year of Birth		Length of	Fund Complex Overseen	Other Directorships Held
and Address	Position	Time Served	by Board Member*	During at Least the Past 5 Years

Harris J. Ashton (1932)	Trustee	Since 1992	145	Bar-S Foods (meat packing company)
300 S.E. 2nd Street				(1981-2010).
Fort Lauderdale, FL 33301-1923