FORM N-Q
QUARTERLY SCHEDULE OF PORTFOLIO HOLDINGS OF
REGISTERED MANAGEMENT INVESTMENT COMPANIES
Investment Company Act file number 811-07866
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TEMPLETON EMERGING MARKETS INCOME FUND
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(Exact name of registrant as specified in charter)
500 EAST BROWARD BLVD., SUITE 2100, FORT LAUDERDALE, FL 33394-3091
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(Address of principal executive offices) (Zip code)
MURRAY L. SIMPSON, ONE FRANKLIN PARKWAY, SAN MATEO, CA 94403-1906
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(Name and address of agent for service)
Registrant's telephone number, including area code: (954) 527-7500
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Date of fiscal year end: 08/31
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Date of reporting period: 11/30/04
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ITEM 1. SCHEDULE OF INVESTMENTS.
TEMPLETON EMERGING MARKETS INCOME FUND
QUARTERLY STATEMENT OF INVESTMENTS
NOVEMBER 30, 2004
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CONTENTS
Statement of Investments ................................................. 3
Notes to Statement of Investments ........................................ 6
[LOGO](R)
FRANKLIN(R) TEMPLETON(R)
INVESTMENTS
Franklin o TEMPLETON o Mutual Series
Quarterly Statement of Investments | 1
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TEMPLETON EMERGING MARKETS INCOME FUND
STATEMENT OF INVESTMENTS, NOVEMBER 30, 2004 (UNAUDITED)
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PRINCIPAL AMOUNT(d) VALUE
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LONG TERM INVESTMENTS 97.3%
ARGENTINA 3.6%
Republic of Argentina, FRN, 1.98%, 8/03/12 .................................. $ 29,570,000 $ 23,670,785
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BOSNIA AND HERZEGOVINA 1.2%
Bosnia & Herzegovina, FRN, 3.00%, 12/11/17 .................................. 7,249,096 EUR 7,900,187
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BRAZIL 17.8%
(a),(b)Globo Communicacoes Participacoes Ltd., 144A, 10.625%, 12/05/08 ............. 5,000,000 4,475,000
Republic of Brazil,
DCB, L, FRN, 2.125%, 4/15/12 .............................................. 45,737,131 42,792,803
RG, FRN, 3.125%, 4/15/12 .................................................. 8,775,070 8,247,443
8.00%, 4/15/14 ............................................................ 61,527,829 61,873,923
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117,389,169
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BULGARIA 1.6%
Republic of Bulgaria, FRN, 2.75%, 7/28/11 ................................... 10,537,800 10,527,947
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COLOMBIA 3.5%
Republic of Colombia,
10.50%, 7/09/10 ........................................................... 2,758,000 3,261,335
10.75%, 1/15/13 ........................................................... 12,450,000 14,643,690
11.75%, 2/25/20 ........................................................... 4,255,000 5,347,897
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23,252,922
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HUNGARY 3.2%
Government of Hungary,
9.25%, 5/12/05 ............................................................ 345,900,000 HUF 1,869,103
8.50%, 10/12/05 ........................................................... 2,983,400,000 HUF 16,001,523
7.00%, 4/12/06 ............................................................ 120,000,000 HUF 631,781
6.25%, 6/12/08 ............................................................ 500,000,000 HUF 2,513,990
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21,016,397
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INDONESIA 10.4%
Indonesia Government, 11.00%, 10/15/14 ...................................... 41,602,000,000 IDR 4,808,496
Indonesia Recapital Bond,
13.15%, 3/15/10 ........................................................... 81,420,000,000 IDR 10,256,657
FRN, 14.25%, 6/15/13 ...................................................... 202,550,000,000 IDR 27,389,257
14.275%, 12/15/13 ......................................................... 127,800,000,000 IDR 17,430,501
(a),(b)P T Indah Kiat Finance Mauritius Ltd., 10.00%, 7/01/07 ...................... 16,375,000 6,264,256
(a),(b)PT Inti Indorayon Utama TBK, 9.125, 10/15/49 ................................ 6,830,000 102,450
(a),(b)Tjiwi Kimia International Finance Co. BV, senior note, 13.25%, 8/01/01 ...... 8,000,000 2,419,200
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68,670,817
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MALAYSIA .4%
Petronas Capital Ltd., 144A, 7.00%, 5/22/12 ................................. 2,000,000 2,275,174
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MEXICO 5.9%
Pemex Project Funding Master Trust, 144A, 2.82%, 6/15/10 .................... 11,910,000 12,237,525
United Mexican States,
5.375%, 6/10/13 ........................................................... 5,500,000 EUR 7,597,751
144A, 7.50%, 3/08/10 ...................................................... 8,610,000 EUR 13,241,929
Reg S, 7.50%, 3/08/10 ..................................................... 3,600,000 EUR 5,536,695
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38,613,900
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Quarterly Statement of Investments | 3
TEMPLETON EMERGING MARKETS INCOME FUND
STATEMENT OF INVESTMENTS, NOVEMBER 30, 2004 (UNAUDITED) (CONTINUED)
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PRINCIPAL AMOUNT(d) VALUE
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LONG TERM INVESTMENTS (CONT.)
PANAMA .9%
Republic of Panama, 10.75%, 5/15/20 ........................................... $ 4,600,000 $ 5,731,324
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PERU 1.4%
Republic of Peru, 9.875%, 2/06/15 ............................................. 7,640,000 8,938,800
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PHILIPPINES 4.7%
Republic of Philippines,
8.375%, 2/15/11 ............................................................. 6,500,000 6,503,989
9.00%, 2/15/13 .............................................................. 18,700,000 18,987,045
Reg S, 8.75%, 10/07/16 ...................................................... 5,450,000 5,229,896
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30,720,930
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POLAND 4.7%
Republic of Poland,
8.50%, 11/12/06 ............................................................. 35,600,000 PLN 11,637,310
8.50%, 5/12/07 .............................................................. 37,300,000 PLN 12,330,130
6.00%, 5/24/09 .............................................................. 23,000,000 PLN 7,095,116
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31,062,556
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RUSSIA 11.0%
Russian Federation,
Reg S, 11.00%, 7/24/18 ...................................................... 44,725,000 60,583,814
Reg S, 12.75%, 6/24/28 ...................................................... 7,356,000 11,705,235
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72,289,049
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SOUTH AFRICA 2.2%
Republic of South Africa, 5.25%, 5/16/13 ...................................... 10,490,000 EUR 14,648,525
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SOUTH KOREA 4.9%
Korea Treasury Bonds,
6.90%, 1/16/07 .............................................................. 10,000,000,000 KRW 10,322,775
4.75%, 3/12/08 .............................................................. 21,865,000,000 KRW 21,983,657
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32,306,432
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THAILAND 4.1%
Government of Thailand,
8.50%, 10/14/05 ............................................................. 670,000,000 THB 17,890,181
8.00%, 12/08/06 ............................................................. 31,000,000 THB 867,627
4.125%, 2/12/08 ............................................................. 98,000,000 THB 2,553,308
8.50%, 12/08/08 ............................................................. 11,000,000 THB 332,721
4.80%, 4/09/10 .............................................................. 212,000,000 THB 5,524,963
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27,168,800
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UKRAINE 4.7%
Republic of Ukraine,
144A, FRN, 5.361%, 8/05/09 .................................................. 11,100,000 11,155,500
144A, 7.65%, 6/11/13 ........................................................ 18,148,000 18,369,769
FRN, 5.36%, 8/05/09 ......................................................... 1,200,000 1,212,000
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30,737,269
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4 | Quarterly Statement of Investments
TEMPLETON EMERGING MARKETS INCOME FUND
STATEMENT OF INVESTMENTS, NOVEMBER 30, 2004 (UNAUDITED) (CONTINUED)
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PRINCIPAL AMOUNT(d) VALUE
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LONG TERM INVESTMENTS (CONT.)
VENEZUELA 10.2%
Republic of Venezuela,
10.75%, 9/19/13 ..................................................................... $ 6,175,000 $ 7,332,812
9.25%, 9/15/27 ...................................................................... 57,409,000 59,723,444
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67,056,256
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VIETNAM .9%
Republic of Vietnam, 4.00%, 3/12/16 .................................................... 6,592,000 6,168,227
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TOTAL LONG TERM INVESTMENTS (COST $586,200,206) ........................................ 640,145,466
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SHARES
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SHORT TERM INVESTMENTS .5%
MONEY FUND (COST $3,271,750) .5%
(c)Franklin Institutional Fiduciary Trust Money Market Portfolio .......................... 3,271,750 3,271,750
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TOTAL INVESTMENTS (COST $589,471,956) 97.8% ............................................ 643,417,216
OTHER ASSETS, LESS LIABILITIES 2.2% .................................................... 14,742,917
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NET ASSETS 100.0% ...................................................................... $658,160,133
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CURRENCY ABBREVIATIONS: | EUR - Euro | HUF - Hungarian Forint | IDR - Indonesian
Rupiah | KRW - Korean Won | PLN - Polish Zloty | THB -
Thai Baht
(a) Non-income producing.
(b) Defaulted security.
(c) The Franklin Institutional Fiduciary Trust Money Market Portfolio is
managed by an affiliate of the Fund's investment manager.
(d) The principal amount is stated in U.S. dollars unless otherwise indicated.
Quarterly Statement of Investments | See Notes to Statement of Investments. | 5
TEMPLETON EMERGING MARKETS INCOME FUND
NOTES TO STATEMENT OF INVESTMENTS (UNAUDITED)
Templeton Emerging Markets Income Fund (the Fund) is registered under the
Investment Company Act of 1940 as a closed-end, non-diversified investment
company.
1. INCOME TAXES
At November 30, 2004 the net unrealized appreciation (depreciation) based on the
cost of investments for income tax purposes was as follows:
Cost of investments .................................... $ 594,298,060
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Unrealized appreciation ................................ $ 73,800,071
Unrealized depreciation ................................ (24,680,915)
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Net unrealized appreciation (depreciation) ............. $ 49,119,156
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For information on the Fund's policy regarding valuation of investments and
other significant accounting policies, please refer to the Fund's most recent
semiannual or annual shareholder report.
6 | Quarterly Statement of Investments
ITEM 2. CONTROLS AND PROCEDURES.
(a) EVALUATION OF DISCLOSURE CONTROLS AND PROCEDURES. The Registrant maintains
disclosure controls and procedures that are designed to ensure that information
required to be disclosed in the Registrant's filings under the Securities
Exchange Act of 1934 and the Investment Company Act of 1940 is recorded,
processed, summarized and reported within the periods specified in the rules and
forms of the Securities and Exchange Commission. Such information is accumulated
and communicated to the Registrant's management, including its principal
executive officer and principal financial officer, as appropriate, to allow
timely decisions regarding required disclosure. The Registrant's management,
including the principal executive officer and the principal financial officer,
recognizes that any set of controls and procedures, no matter how well designed
and operated, can provide only reasonable assurance of achieving the desired
control objectives.
Within 90 days prior to the filing date of this Quarterly Schedule of Portfolio
Holdings on Form N-Q, the Registrant had carried out an evaluation, under the
supervision and with the participation of the Registrant's management, including
the Registrant's principal executive officer and the Registrant's principal
financial officer, of the effectiveness of the design and operation of the
Registrant's disclosure controls and procedures. Based on such evaluation, the
Registrant's principal executive officer and principal financial officer
concluded that the Registrant's disclosure controls and procedures are
effective.
(b) CHANGES IN INTERNAL CONTROLS. There have been no significant changes
in the Registrant's internal controls or in other factors that could
significantly affect the internal controls subsequent to the date of their
evaluation in connection with the preparation of this Quarterly Schedule of
Portfolio Holdings on Form N-Q.
ITEM 3. EXHIBITS.
(a) Certifications pursuant to Section 30a-2 of the Investment Company Act of
1940 of Jimmy D. Gambill, Chief Executive Officer - Finance and Administration,
and Galen G. Vetter, Chief Financial Officer.
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934 and the
Investment Company Act of 1940, the registrant has duly caused this report to be
signed on its behalf by the undersigned, thereunto duly authorized.
TEMPLETON EMERGING MARKETS INCOME FUND
By /s/JIMMY D. GAMBILL
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Jimmy D. Gambill
Chief Executive Officer -
Finance and Administration
Date January 20, 2005
Pursuant to the requirements of the Securities Exchange Act of 1934 and the
Investment Company Act of 1940, this report has been signed below by the
following persons on behalf of the registrant and in the capacities and on the
dates indicated.
By /s/JIMMY D. GAMBILL
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Jimmy D. Gambill
Chief Executive Officer -
Finance and Administration
Date January 20, 2005
By /s/GALEN G. VETTER
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Galen G. Vetter
Chief Financial Officer
Date January 20, 2005