N-CSR 1 ncsr-tit0815.htm ncsr-tit0815.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 811-04706

 

Templeton Income Trust

(Exact name of registrant as specified in charter)

 

300 S.E. 2nd 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:  8/31/15__

 

Item 1. Reports to Stockholders.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 


 


Annual Report and Shareholder Letter

August 31, 2015

Templeton Global Bond Fund

A SERIES OF TEMPLETON INCOME TRUST



 

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.

Focus on Investment Excellence

At the core of our firm, you’ll find multiple independent investment teams—each with a focused area of expertise—from traditional to alternative strategies and multi-asset solutions. And because our portfolio groups operate autonomously, their strategies can be combined to deliver true style and asset class diversification.

All of our investment teams share a common commitment to excellence grounded in rigorous, fundamental research and robust, disciplined risk management. Decade after decade, our consistent, research-driven processes have helped Franklin Templeton earn an impressive record of strong, long-term results.

Global Perspective Shaped by Local Expertise

In today’s complex and interconnected world, smart investing demands a global perspective. Franklin Templeton pioneered international investing over 60 years ago, and our expertise in emerging markets spans more than a quarter of a century. Today, our investment professionals are on the ground across the globe, spotting investment ideas and potential risks firsthand. These locally based teams bring in-depth understanding of local companies, economies and cultural nuances, and share their best thinking across our global research network.

Strength and Experience

Franklin Templeton is a global leader in asset management serving clients in over 150 countries.1 We run our business with the same prudence we apply to asset management, staying focused on delivering relevant investment solutions, strong long-term results and reliable, personal service. This approach, focused on putting clients first, has helped us to become one of the most trusted names in financial services.

1. As of 12/31/14. Clients are represented by the total number of shareholder accounts.

Not FDIC Insured | May Lose Value | No Bank Guarantee


 

Contents  
 
Shareholder Letter 1
Annual Report  
Templeton Global Bond Fund 3
Performance Summary 6
Your Fund’s Expenses 11
Financial Highlights and  
Statement of Investments 13
Financial Statements 36
Notes to Financial Statements 40
Report of Independent Registered  
Public Accounting Firm 51
Tax Information 52
Board Members and Officers 53
Shareholder Information 58

 

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Annual Report

Templeton Global Bond Fund

This annual report for Templeton Global Bond Fund covers the fiscal year ended August 31, 2015.

Your Fund’s Goal and Main Investments

The Fund seeks current income with capital appreciation and growth of income. Under normal market conditions, the Fund invests at least 80% of its net assets in “bonds.” Bonds include debt securities of any maturity, such as bonds, notes, bills and debentures.

Performance Overview

For the 12 months under review, the Fund’s Class A shares had a -6.96% cumulative total return. In comparison, global government bonds, as measured by the Fund’s benchmark, the Citigroup World Government Bond Index (WGBI), posted cumulative total returns of +3.00% in local currency terms and -7.71% in U.S. dollar terms for the same period.1 You can find the Fund’s long-term performance data in the Performance Summary beginning 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. Please visit franklintempleton.com or call (800) 342-5236 for most recent month-end performance.

Economic and Market Overview

During the period, global financial markets were broadly influenced by the pickup in growth in the U.S., economic moderation in China, quantitative easing (QE) measures from the Bank of Japan (BOJ) and the European Central Bank (ECB), a sharp decline in oil prices, and a protracted depreciation of emerging market currencies. We continued to see differentiation among specific emerging market economies; some had healthy current account and fiscal balances with strong export-driven economies, while others struggled with deficits and economic imbalances. We believed that economies with healthier balances and stronger growth prospects would be

 

 

 

 

 

 

 

in a stronger position to potentially raise rates in conjunction with U.S. Federal Reserve (Fed) rate hikes that could occur in the second half of 2015.

The U.S. dollar broadly strengthened against developed and emerging market currencies during the 12-month period. Global bond yields and spread levels fluctuated, with an overall trend to lower yields in Europe and Asia, and a general increase in yields in Latin America. U.S. Treasury yields shifted throughout the period with the yield on the 10-year U.S. Treasury note beginning the period at 2.35% and rising to 2.63% in September 2014, before declining to a period low of 1.68% in January 2015 and finishing the period at 2.21%. Credit spreads widened in Asia and Latin America over the course of the 12-month period.

In late October 2014, the BOJ introduced a new round of massive QE with an indefinite time horizon. The annual level of asset purchasing was raised to 80 trillion yen — a level that basically equates to the U.S. Fed’s former QE program that ended in the same month. This massive amount of liquidity had significant implications for global markets. Though Japan’s QE was positive for global risk assets, it contributed to further depreciation of the yen, which declined 14.28% against the U.S. dollar during the 12-month period.2

1. Source: Morningstar.
The index is unmanaged and includes reinvested interest. One cannot invest directly in an index, and an index is not representative of the Fund’s portfolio.
2. Source: FactSet.
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 18.

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Risk aversion increased during November and December 2014 as sharp declines in oil prices accelerated. In our view, the market misjudged the underlying forces behind the decline in oil prices, which we considered to have been driven by supply dynamics rather than a loss of demand. Heightened volatility led to a broad decline in yields across the Americas, Europe and Asia, while credit spreads widened. This trend persisted through January 2015 before sharply reversing course in February when credit spreads tightened as risk appetites returned and yields broadly shifted higher across the Americas, Europe and Asia.

In March 2015, the ECB launched QE with the aim of increasing the size of its balance sheet to a level higher than its previous peak. The ECB stated its intentions to continue its asset purchases until it sees a sustained adjustment in the path of inflation, making the program effectively open ended. We anticipated that this would keep interest rates low for a while and that it would put further downward pressure on the euro. The euro depreciated 14.93% against the U.S. dollar over the 12-month period.2

In China, we viewed the country’s moderation of growth as an inevitable normalization for an economy of its size. Despite the sudden decline of Chinese equity markets in late June and July 2015, we believed growth in China would remain on its expansionary pace and that the economy was fundamentally more stable than markets indicated. However, the devaluation of the Chinese yuan in mid-August by about 3% appeared to raise fears of a deeper, potentially uncontrolled depreciation. We believed

Currency Breakdown*    
8/31/15    
  % of Total  
  Net Assets  
Americas 104.1 %
U.S. Dollar 78.6 %
Mexican Peso 18.1 %
Brazilian Real 4.4 %
Chilean Peso 2.9 %
Peruvian Nuevo Sol 0.1 %
Asia Pacific 24.7 %
South Korean Won 19.0 %
Malaysian Ringgit 13.2 %
Singapore Dollar 8.8 %
Indian Rupee 5.7 %
Indonesian Rupiah 5.4 %
Philippine Peso 1.4 %
Sri Lankan Rupee 1.2 %
Australian Dollar -3.2 %
Japanese Yen -26.8 %
Europe -28.8 %
Polish Zloty 8.7 %
Hungarian Forint 2.1 %
Euro -39.6 %
 
*Figures reflect certain derivatives held in the portfolio (or their underlying reference  
assets) and may not total 100% or may be negative due to rounding, use of any  
derivatives, unsettled trades or other factors.    

 

that the Chinese authorities would focus on keeping currency depreciation reasonably controlled and that targeted monetary policies were prudent responses to a moderating economy.

In July and August 2015, global volatility increased significantly with sharp declines in the bond markets and currencies of several emerging market countries. In our assessment, the depreciation of several emerging market currencies was excessive, leading to fundamentally cheap valuations. In keeping with our strategy, we look for opportunities to selectively add to our strongest convictions in periods of volatility and believe that global market fundamentals will eventually reemerge. Despite the escalation in near-term volatility, our medium-term convictions remained intact during the period.

Investment Strategy

We invest selectively in bonds around the world based upon our assessment of changing market, political and economic conditions. While seeking opportunities, we monitor various factors

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TEMPLETON GLOBAL BOND FUND

including 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 at a specific
exchange rate on a future date.

 

Manager’s Discussion

The core of our strategy remained seeking to position ourselves to navigate a rising interest rate environment. Thus, we continued to maintain low portfolio duration while aiming at a negative correlation with U.S. Treasury rates. We were positioned with negative duration exposure to U.S. Treasuries, and we held select local currencies and local bond positions in specific emerging markets. We also actively sought opportunities that could, in our view, potentially offer positive real yields without taking undue interest rate risk. We favored countries that we believe have solid underlying fundamentals and policy-makers who have stayed ahead of the curve regarding fiscal, monetary and financial policy. 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 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, a major detractor from the Fund’s absolute performance was currency positions. Interest rate strategies and sovereign credit exposures contributed to absolute return. Currency positions in Asia ex-Japan and Latin America detracted from absolute performance, as did positions in peripheral European currencies against the euro. However, the Fund’s net-negative positions in the Japanese yen and the euro, achieved through currency forward contracts, contributed to absolute

return. The Fund maintained a defensive approach regarding interest rates in developed and emerging markets. Select duration exposures in multiple regions contributed to absolute return.

Relative to the benchmark index, the Fund’s performance benefited primarily from currency positions followed by sovereign credit exposures. Interest rate strategies detracted from relative performance. Underweighted positioning in the euro and the Japanese yen significantly contributed to relative performance during the period. However, overweighted currency positions in Asia ex-Japan and Latin America detracted, as did overweighted positions in peripheral European currencies against the euro. Select underweighted duration exposures in Europe detracted from relative return, as did underweighted duration exposure to the U.S. and Japan.

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

The foregoing information reflects our analysis, opinions and portfolio holdings as of August 31, 2015, 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 BOND FUND

Performance Summary as of August 31, 2015

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

Net Asset Value            
Share Class (Symbol)   8/31/15   8/31/14   Change
A (TPINX) $ 11.66 $ 13.41 -$ 1.75
C (TEGBX) $ 11.69 $ 13.44 -$ 1.75
R (FGBRX) $ 11.66 $ 13.41 -$ 1.75
R6 (FBNRX) $ 11.62 $ 13.36 -$ 1.74
Advisor (TGBAX) $ 11.62 $ 13.36 -$ 1.74
 
 
Distributions1 (9/1/14–8/31/15)            
    Dividend   Short-Term    
Share Class   Income   Capital Gain   Total
A $ 0.8234 $ 0.0281 $ 0.8515
C $ 0.7723 $ 0.0281 $ 0.8004
R $ 0.7918 $ 0.0281 $ 0.8199
R6 $ 0.8719 $ 0.0281 $ 0.9000
Advisor $ 0.8551 $ 0.0281 $ 0.8832

 

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TEMPLETON GLOBAL BOND FUND
PERFORMANCE SUMMARY

Performance as of 8/31/152

Cumulative total return excludes sales charges. Average annual total returns and value of $10,000 investment include maximum
sales charges. Class A: 4.25% maximum initial sales charge; Class C: 1% contingent deferred sales charge in first year only;
Class R/R6/Advisor Class: no sales charges.

                     
             Value of      Average Annual   Total Annual Operating Expenses7  
  Cumulative   Average Annual   $ 10,000 Total Return          
Share Class Total Return3   Total Return4     Investment5 (9/30/15 )6 (with waiver)   (without waiver)  
A                 0.90 % 0.91 %
1-Year -6.96 % -10.94 % $ 8,906 -11.88 %        
5-Year +17.73 % +2.42 % $ 11,271 +1.26 %        
10-Year +100.66 % +6.75 % $ 19,221 +6.62 %        
C                 1.30 % 1.31 %
1-Year -7.32 % -8.19 % $ 9,181 -9.17 %        
5-Year +15.45 % +2.91 % $ 11,545 +1.75 %        
10-Year +92.93 % +6.79 % $ 19,293 +6.65 %        
R                 1.15 % 1.16 %
1-Year -7.19 % -7.19 % $ 9,281 -8.19 %        
5-Year +16.37 % +3.08 % $ 11,637 +1.90 %        
Since Inception (2/2/09) +47.91 % +6.13 % $ 14,791 +5.75 %        
R6                 0.52 % 0.53 %
1-Year -6.55 % -6.55 % $ 9,345 -7.57 %        
Since Inception (5/1/13) -3.11 % -1.35 % $ 9,689 -2.07 %        
Advisor                 0.65 % 0.66 %
1-Year -6.67 % -6.67 % $ 9,333 -7.69 %        
5-Year +19.28 % +3.59 % $ 11,928 +2.41 %        
10-Year +105.77 % +7.48 % $ 20,577 +7.35 %        

 

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. For most recent month-end performance, go to franklintempleton.com or call (800) 342-5236.

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TEMPLETON GLOBAL BOND FUND

PERFORMANCE SUMMARY

Total Return Index Comparison for a Hypothetical $10,000 Investment1

Total return represents the change in value of an investment over the periods shown. It includes any applicable maximum sales charge, Fund expenses, account fees and reinvested distributions. The unmanaged index includes reinvestment of any income or distributions. It differs from the Fund in composition and does not pay management fees or expenses. One cannot invest directly in an index.



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TEMPLETON GLOBAL BOND FUND

PERFORMANCE SUMMARY


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TEMPLETON GLOBAL BOND FUND

PERFORMANCE SUMMARY


All investments involve risks, including possible loss of principal. Currency rates may fluctuate significantly over short periods of time and can reduce returns.
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. Foreign securities involve special risks, including currency fluctu-
ations and economic and political uncertainties. Investments in emerging markets involve heightened risks related to the same factors, in addition to those
associated with these markets’ smaller size and lesser liquidity. Sovereign debt securities are subject to various risks in addition to those relating to debt securi-
ties and foreign securities generally, including, but not limited to, the risk that a government entity may be unwilling or unable to pay interest and repay principal
on its sovereign debt, or otherwise meet its obligations when due. Investments in lower rated bonds include higher risk of default and 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.
As prices of bonds in the Fund adjust to a rise in interest rates, the Fund’s share price may decline. 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. The Fund is also nondiversified, which involves the risk of greater price
fluctuation than a more diversified portfolio. Changes in the financial strength of a bond issuer or in a bond’s credit rating may affect its value. The Fund is
actively managed but there is no guarantee that the manager’s investment decisions will produce the desired results. The Fund’s prospectus also includes a
description of the main investment risks.

Class C: These shares have higher annual fees and expenses than Class A shares.

Class R: Shares are available to certain eligible investors as described in the prospectus. These shares have higher annual fees and expenses than Class A shares.

Class R6: Shares are available to certain eligible investors as described in the prospectus.

Advisor Class: Shares are available to certain eligible investors as described in the prospectus.

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 and
capital gain.
2. The Fund has a fee waiver associated with any investment in a Franklin Templeton money fund, contractually guaranteed through at least 12/31/15. Fund investment
results reflect the fee waiver, to the extent applicable; without this reduction, the results would have been lower.
3. Cumulative total return represents the change in value of an investment over the periods indicated.
4. Average annual total return represents the average annual change in value of an investment over the periods indicated.
5. These figures represent the value of a hypothetical $10,000 investment in the Fund over the periods indicated.
6. In accordance with SEC rules, we provide standardized average annual total return information through the latest calendar quarter.
7. Figures are as stated in the Fund’s current prospectus. In periods of market volatility, assets may decline significantly, causing total annual Fund operating expenses to
become higher than the figures shown.
8. Source: Morningstar. The Citigroup WGBI is a market capitalization-weighted index consisting of investment-grade world government bond markets.
9. Source: Bureau of Labor Statistics, bls.gov/cpi. The Consumer Price Index (CPI), is a commonly used measure of the inflation rate.
See www.franklintempletondatasources.com for additional data provider information.

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TEMPLETON GLOBAL BOND FUND

Your Fund’s Expenses

As a Fund shareholder, you can incur two types of costs:

  • Transaction costs, including sales charges (loads) on Fund purchases; and
  • Ongoing Fund costs, including management fees, distribution and service (12b-1) fees, and other Fund expenses. All mutual funds have ongoing costs, sometimes referred to as operating expenses.

The following table shows ongoing costs of investing in the Fund and can help you understand these costs and compare them with those of other mutual funds. The table assumes a $1,000 investment held for the six months indicated.

Actual Fund Expenses

The first line (Actual) for each share class listed in the table provides actual account values and expenses. The “Ending Account Value” is derived from the Fund’s actual return, which includes the effect of Fund expenses.

You can estimate the expenses you paid during the period by following these steps. Of course, your account value and expenses will differ from those in this illustration:

1.      Divide your account value by $1,000.
  If an account had an $8,600 value, then $8,600 ÷ $1,000 = 8.6.
2.      Multiply the result by the number under the heading “Expenses Paid During Period.”
  If Expenses Paid During Period were $7.50, then 8.6 x $7.50 = $64.50.

In this illustration, the estimated expenses paid this period are $64.50.

Hypothetical Example for Comparison with Other Funds

Information in the second line (Hypothetical) for each class in the table can help you compare ongoing costs of investing in the Fund with those of other mutual funds. This information may not be used to estimate the actual ending account balance or expenses you paid during the period. The hypothetical “Ending Account Value” is based on the actual expense ratio for each class and an assumed 5% annual rate of return before expenses, which does not represent the Fund’s actual return. The figure under the heading “Expenses Paid During Period” shows the hypothetical expenses your account would have incurred under this scenario. You can compare this figure with the 5% hypothetical examples that appear in shareholder reports of other funds.

Please note that expenses shown in the table are meant to highlight ongoing costs and do not reflect any transaction costs, such as sales charges. Therefore, the second line for each class is useful in comparing ongoing costs only, and will not help you compare total costs of owning different funds. In addition, if transaction costs were included, your total costs would have been higher. Please refer to the Fund prospectus for additional information on operating expenses.

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TEMPLETON GLOBAL BOND FUND        
YOUR FUND’S EXPENSES            
 
 
 
    Beginning Account   Ending Account   Expenses Paid During
Share Class   Value 3/1/15   Value 8/31/15   Period* 3/1/15–8/31/15
A            
Actual $ 1,000 $ 948.10 $ 4.32
Hypothetical (5% return before expenses) $ 1,000 $ 1,020.77 $ 4.48
C            
Actual $ 1,000 $ 946.30 $ 6.28
Hypothetical (5% return before expenses) $ 1,000 $ 1,018.75 $ 6.51
R            
Actual $ 1,000 $ 946.90 $ 5.55
Hypothetical (5% return before expenses) $ 1,000 $ 1,019.51 $ 5.75
R6            
Actual $ 1,000 $ 949.80 $ 2.46
Hypothetical (5% return before expenses) $ 1,000 $ 1,022.68 $ 2.55
Advisor            
Actual $ 1,000 $ 949.10 $ 3.10
Hypothetical (5% return before expenses) $ 1,000 $ 1,022.03 $ 3.21

 

*Expenses are calculated using the most recent six-month expense ratio, net of expense waivers, annualized for each class (A: 0.88%;
C: 1.28%; R: 1.13%; R6: 0.50%; and Advisor: 0.63%), multiplied by the average account value over the period, multiplied by 184/365 to
reflect the one-half year period.

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                TEMPLETON INCOME TRUST  
 
 
Financial Highlights                              
Templeton Global Bond Fund                              
          Year Ended August 31,        
    2015     2014     2013     2012     2011  
Class A                              
Per share operating performance                              
(for a share outstanding throughout the year)                              
Net asset value, beginning of year $ 13.41   $ 12.68   $ 13.12   $ 13.81   $ 13.24  
Income from investment operationsa:                              
Net investment incomeb   0.34     0.37     0.38     0.43     0.52  
Net realized and unrealized gains (losses)   (1.24 )   0.84     0.04     (0.24 )   0.78  
Total from investment operations   (0.90 )   1.21     0.42     0.19     1.30  
Less distributions from:                              
Net investment income and net foreign currency gains   (0.82 )   (0.48 )   (0.69 )   (0.80 )   (0.73 )
Net realized gains   (0.03 )   (—)c     (0.17 )   (0.08 )    
Total distributions   (0.85 )   (0.48 )   (0.86 )   (0.88 )   (0.73 )
Net asset value, end of year $ 11.66   $ 13.41   $ 12.68   $ 13.12   $ 13.81  
 
Total returnd   (6.96 )%   9.71 %   3.09 %   1.75 %   9.96 %
 
Ratios to average net assets                              
Expenses before waiver and payments by affiliates   0.90 %   0.90 %   0.86 %   0.89 %   0.88 %
Expenses net of waiver and payments by affiliates   0.88 %   0.89 %e   0.86 %e   0.89 %   0.88 %e
Net investment income   2.68 %   2.83 %   2.84 %   3.30 %   3.76 %
 
Supplemental data                              
Net assets, end of year (000’s) $ 19,063,126   $ 23,897,947   $ 25,959,296   $ 24,338,274   $ 26,032,471  
Portfolio turnover rate   43.19 %   35.18 %   42.39 %   41.70 %   26.41 %

 

aThe amount shown for a share outstanding throughout the period may not correlate with the Statement of Operations for the period due to the timing of sales and
repurchases of the Fund’s shares in relation to income earned, adjustments to interest income for the inflation-indexed bonds, and/or fluctuating fair value of the
investments of the Fund.
bBased on average daily shares outstanding.
cAmount rounds to less than $0.01 per share.
dTotal return does not reflect sales commissions or contingent deferred sales charges, if applicable.
eBenefit of expense reduction rounds to less than 0.01%.

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TEMPLETON INCOME TRUST                              
FINANCIAL HIGHLIGHTS                              
 
 
 
Templeton Global Bond Fund (continued)                              
          Year Ended August 31,        
    2015     2014     2013     2012     2011  
Class C                              
Per share operating performance                              
(for a share outstanding throughout the year)                              
Net asset value, beginning of year $ 13.44   $ 12.70   $ 13.14   $ 13.84   $ 13.27  
Income from investment operationsa:                              
Net investment incomeb   0.29     0.32     0.33     0.38     0.46  
Net realized and unrealized gains (losses)   (1.24 )   0.84     0.04     (0.25 )   0.79  
Total from investment operations   (0.95 )   1.16     0.37     0.13     1.25  
Less distributions from:                              
Net investment income and net foreign currency gains   (0.77 )   (0.42 )   (0.64 )   (0.75 )   (0.68 )
Net realized gains   (0.03 )   (—)c     (0.17 )   (0.08 )    
Total distributions   (0.80 )   (0.42 )   (0.81 )   (0.83 )   (0.68 )
Net asset value, end of year $ 11.69   $ 13.44   $ 12.70   $ 13.14   $ 13.84  
 
Total returnd   (7.32 )%   9.33 %   2.67 %   1.26 %   9.59 %
 
Ratios to average net assets                              
Expenses before waiver and payments by affiliates   1.30 %   1.30 %   1.26 %   1.29 %   1.28 %
Expenses net of waiver and payments by affiliates   1.28 %   1.29 %e   1.26 %e   1.29 %   1.28 %e
Net investment income   2.28 %   2.43 %   2.44 %   2.90 %   3.36 %
 
Supplemental data                              
Net assets, end of year (000’s) $ 6,171,509   $ 8,216,911   $ 8,956,685   $ 8,965,274   $ 9,270,612  
Portfolio turnover rate   43.19 %   35.18 %   42.39 %   41.70 %   26.41 %

 

aThe amount shown for a share outstanding throughout the period may not correlate with the Statement of Operations for the period due to the timing of sales and
repurchases of the Fund’s shares in relation to income earned, adjustments to interest income for the inflation-indexed bonds, and/or fluctuating fair value of the
investments of the Fund.
bBased on average daily shares outstanding.
cAmount rounds to less than $0.01 per share.
dTotal return does not reflect sales commissions or contingent deferred sales charges, if applicable.
eBenefit of expense reduction rounds to less than 0.01%.

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

franklintempleton.com


 

                TEMPLETON INCOME TRUST  
                FINANCIAL HIGHLIGHTS  
 
 
 
Templeton Global Bond Fund (continued)                              
          Year Ended August 31,        
    2015     2014     2013     2012     2011  
Class R                              
Per share operating performance                              
(for a share outstanding throughout the year)                              
Net asset value, beginning of year $ 13.41   $ 12.67   $ 13.11   $ 13.81   $ 13.24  
Income from investment operationsa:                              
Net investment incomeb   0.31     0.34     0.34     0.39     0.46  
Net realized and unrealized gains (losses)   (1.24 )   0.84     0.05     (0.25 )   0.81  
Total from investment operations   (0.93 )   1.18     0.39     0.14     1.27  
Less distributions from:                              
Net investment income and net foreign currency gains   (0.79 )   (0.44 )   (0.66 )   (0.76 )   (0.70 )
Net realized gains   (0.03 )   (—)c     (0.17 )   (0.08 )    
Total distributions   (0.82 )   (0.44 )   (0.83 )   (0.84 )   (0.70 )
Net asset value, end of year $ 11.66   $ 13.41   $ 12.67   $ 13.11   $ 13.81  
 
Total return   (7.19 )%   9.52 %   2.83 %   1.42 %   9.78 %
 
Ratios to average net assets                              
Expenses before waiver and payments by affiliates   1.15 %   1.15 %   1.11 %   1.14 %   1.13 %
Expenses net of waiver and payments by affiliates   1.13 %   1.14 %d   1.11 %d   1.14 %   1.13 %d
Net investment income   2.43 %   2.58 %   2.59 %   3.05 %   3.51 %
 
Supplemental data                              
Net assets, end of year (000’s) $ 358,318   $ 367,660   $ 297,364   $ 210,580   $ 126,413  
Portfolio turnover rate   43.19 %   35.18 %   42.39 %   41.70 %   26.41 %

 

aThe amount shown for a share outstanding throughout the period may not correlate with the Statement of Operations for the period due to the timing of sales and
repurchases of the Fund’s shares in relation to income earned, adjustments to interest income for the inflation-indexed bonds, and/or fluctuating fair value of the
investments of the Fund.
bBased on average daily shares outstanding.
cAmount rounds to less than $0.01 per share.
dBenefit of expense reduction rounds to less than 0.01%.

franklintempleton.com

The accompanying notes are an integral part of these financial statements. | Annual Report | 15


 

TEMPLETON INCOME TRUST                  
FINANCIAL HIGHLIGHTS                  
 
 
 
Templeton Global Bond Fund (continued)                  
    Year Ended August 31,  
    2015     2014     2013 a
Class R6                  
Per share operating performance                  
(for a share outstanding throughout the year)                  
Net asset value, beginning of year $ 13.36   $ 12.64   $ 13.60  
Income from investment operationsb:                  
Net investment incomec   0.38     0.42     0.13  
Net realized and unrealized gains (losses)   (1.22 )   0.83     (0.91 )
Total from investment operations   (0.84 )   1.25     (0.78 )
Less distributions from:                  
Net investment income and net foreign currency gains   (0.87 )   (0.53 )   (0.18 )
Net realized gains   (0.03 )   (—)d      
Total distributions   (0.90 )   (0.53 )   (0.18 )
Net asset value, end of year $ 11.62   $ 13.36   $ 12.64  
 
Total returne   (6.55 )%   10.07 %   (5.81 )%
 
Ratios to average net assetsf                  
Expenses before waiver and payments by affiliates   0.52 %   0.52 %   0.51 %
Expenses net of waiver and payments by affiliates   0.50 %   0.51 %g   0.51 %g
Net investment income   3.06 %   3.21 %   3.19 %
 
Supplemental data                  
Net assets, end of year (000’s) $ 2,805,620 $1,934,358 $ 123,814  
Portfolio turnover rate   43.19 %   35.18 %   42.39 %

 

aFor the period May 1, 2013 (effective date) to August 31, 2013.
bThe amount shown for a share outstanding throughout the period may not correlate with the Statement of Operations for the period due to the timing of sales and
repurchases of the Fund’s shares in relation to income earned, adjustments to interest income for the inflation-indexed bonds, and/or fluctuating fair value of the
investments of the Fund.
cBased on average daily shares outstanding.
dAmount rounds to less than $0.01 per share.
eTotal return is not annualized for periods less than one year.
fRatios are annualized for periods less than one year.
gBenefit of expense reduction rounds to less than 0.01%.

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

franklintempleton.com


 

                TEMPLETON INCOME TRUST  
                FINANCIAL HIGHLIGHTS  
 
 
 
Templeton Global Bond Fund (continued)                              
          Year Ended August 31,        
    2015     2014     2013     2012     2011  
Advisor Class                              
Per share operating performance                              
(for a share outstanding throughout the year)                              
Net asset value, beginning of year $ 13.36   $ 12.63   $ 13.08   $ 13.77   $ 13.21  
Income from investment operationsa:                              
Net investment incomeb   0.37     0.40     0.41     0.46     0.55  
Net realized and unrealized gains (losses)   (1.22 )   0.84     0.04     (0.24 )   0.78  
Total from investment operations   (0.85 )   1.24     0.45     0.22     1.33  
Less distributions from:                              
Net investment income and net foreign currency gains   (0.86 )   (0.51 )   (0.73 )   (0.83 )   (0.77 )
Net realized gains   (0.03 )   (—)c     (0.17 )   (0.08 )    
Total distributions   (0.89 )   (0.51 )   (0.90 )   (0.91 )   (0.77 )
Net asset value, end of year $ 11.62   $ 13.36   $ 12.63   $ 13.08   $ 13.77  
 
Total return   (6.67 )%   10.02 %   3.28 %   2.01 %   10.27 %
 
Ratios to average net assets                              
Expenses before waiver and payments by affiliates   0.65 %   0.65 %   0.61 %   0.64 %   0.63 %
Expenses net of waiver and payments by affiliates   0.63 %   0.64 %d   0.61 %d   0.64 %   0.63 %d
Net investment income   2.93 %   3.08 %   3.09 %   3.55 %   4.01 %
 
Supplemental data                              
Net assets, end of year (000’s) $ 32,534,368   $ 38,724,654   $ 32,926,705   $ 28,062,661   $ 27,154,629  
Portfolio turnover rate   43.19 %   35.18 %   42.39 %   41.70 %   26.41 %

 

aThe amount shown for a share outstanding throughout the period may not correlate with the Statement of Operations for the period due to the timing of sales and repurchases of the Fund’s shares in relation to income earned, adjustments to interest income for the inflation-indexed bonds, and/or fluctuating fair value of the investments of the Fund.

 bBased on average daily shares outstanding.

cAmount rounds to less than $0.01 per share.

dBenefit of expense reduction rounds to less than 0.01%.

 

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The accompanying notes are an integral part of these financial statements. | Annual Report | 17


 

TEMPLETON INCOME TRUST        
 
 
 
 
Statement of Investments, August 31, 2015        
 
Templeton Global Bond Fund        
  Principal Amount*     Value
Foreign Government and Agency Securities 62.3%        
Brazil 4.4%        
Letra Tesouro Nacional, Strip,        
1/01/16 559,730

aBRL

$ 147,625,296
1/01/17 988,370 aBRL   228,413,008
1/01/18 615,590 aBRL   124,970,304
Nota Do Tesouro Nacional,        
10.00%, 1/01/17 2,905,806 aBRL   763,215,766
10.00%, 1/01/21 3,515,080 aBRL   829,760,170
10.00%, 1/01/23 744,290 aBRL   168,416,668
b Index Linked, 6.00%, 5/15/17 4,429 aBRL   3,233,814
b Index Linked, 6.00%, 8/15/20 39,290 aBRL   27,725,088
b Index Linked, 6.00%, 8/15/24 252,192 aBRL   174,333,771
b Index Linked, 6.00%, 8/15/50 133,230 aBRL   85,959,633
senior note, 10.00%, 1/01/19 569,840 aBRL   141,191,002
        2,694,844,520
Hungary 6.0%        
Government of Hungary,        
4.00%, 4/25/18 7,305,480,000 HUF   27,530,059
6.00%, 1/11/19 175,752,000 EUR   228,033,737
6.50%, 6/24/19 64,069,680,000 HUF   262,841,563
7.50%, 11/12/20 11,504,930,000 HUF   50,523,522
5.375%, 2/21/23 252,890,000     275,700,678
A, 6.75%, 11/24/17 95,745,970,000 HUF   382,593,370
A, 5.50%, 12/20/18 28,554,590,000 HUF   112,818,240
A, 7.00%, 6/24/22 30,495,680,000 HUF   133,472,129
A, 6.00%, 11/24/23 46,012,200,000 HUF   194,185,297
B, 5.50%, 6/24/25 14,882,990,000 HUF   61,269,964
senior note, 6.25%, 1/29/20 390,004,000     439,965,462
senior note, 6.375%, 3/29/21 927,200,000     1,058,014,012
senior note, 5.375%, 3/25/24 83,320,000     91,234,150
csenior note, Reg S, 4.375%, 7/04/17 69,826,000 EUR   83,470,474
csenior note, Reg S, 5.75%, 6/11/18 143,730,000 EUR   181,805,765
csenior note, Reg S, 3.875%, 2/24/20 36,611,000 EUR   45,440,255
        3,628,898,677
Iceland 0.3%        
dGovernment of Iceland, 144A, 5.875%, 5/11/22 154,630,000     176,704,979
India 2.3%        
Government of India,        
senior bond, 7.80%, 5/03/20 14,439,400,000 INR   216,516,890
senior bond, 8.28%, 9/21/27 4,362,400,000 INR   67,008,863
senior bond, 8.60%, 6/02/28 14,975,000,000 INR   236,130,105
senior note, 7.28%, 6/03/19 561,300,000 INR   8,320,378
senior note, 8.12%, 12/10/20 10,842,300,000 INR   164,602,947
senior note, 8.35%, 5/14/22 4,260,400,000 INR   65,357,639
senior note, 7.16%, 5/20/23 4,378,700,000 INR   62,814,321
senior note, 8.83%, 11/25/23 37,754,900,000 INR   597,236,597
        1,417,987,740

 

18 | Annual Report

franklintempleton.com


 

TEMPLETON INCOME TRUST
STATEMENT OF INVESTMENTS

Templeton Global Bond Fund (continued)        
  Principal Amount*     Value
Foreign Government and Agency Securities (continued)        
Indonesia 4.1%        
Government of Indonesia,        
7.875%, 4/15/19 612,998,000,000 IDR $ 42,914,457
8.375%, 3/15/34 2,917,910,000,000 IDR   195,219,559
FR28, 10.00%, 7/15/17 104,700,000,000 IDR   7,708,674
FR30, 10.75%, 5/15/16 185,655,000,000 IDR   13,528,179
FR31, 11.00%, 11/15/20 968,028,000,000 IDR   75,734,929
FR32, 15.00%, 7/15/18 1,150,000,000 IDR   95,402
FR34, 12.80%, 6/15/21 1,522,849,000,000 IDR   128,396,729
FR35, 12.90%, 6/15/22 1,158,600,000,000 IDR   99,380,305
FR36, 11.50%, 9/15/19 437,062,000,000 IDR   34,182,619
FR37, 12.00%, 9/15/26 66,550,000,000 IDR   5,729,243
FR39, 11.75%, 8/15/23 556,845,000,000 IDR   46,097,634
FR40, 11.00%, 9/15/25 710,760,000,000 IDR   57,324,216
FR42, 10.25%, 7/15/27 818,390,000,000 IDR   63,158,184
FR43, 10.25%, 7/15/22 337,191,000,000 IDR   25,766,787
FR44, 10.00%, 9/15/24 197,824,000,000 IDR   15,043,150
FR46, 9.50%, 7/15/23 2,825,220,000,000 IDR   207,133,830
FR47, 10.00%, 2/15/28 1,854,867,000,000 IDR   140,540,119
FR48, 9.00%, 9/15/18 341,640,000,000 IDR   24,655,476
FR52, 10.50%, 8/15/30 896,704,000,000 IDR   70,458,248
FR61, 7.00%, 5/15/22 114,163,000,000 IDR   7,406,005
senior bond, 9.00%, 3/15/29 2,039,169,000,000 IDR   144,410,890
senior bond, FR53, 8.25%, 7/15/21 7,711,636,000,000 IDR   542,547,524
senior bond, FR56, 8.375%, 9/15/26 2,868,732,000,000 IDR   199,586,291
senior note, 8.50%, 10/15/16 70,944,000,000 IDR   5,100,292
senior bond, FR70, 8.375%, 3/15/24 5,113,872,000,000 IDR   357,606,932
        2,509,725,674
Ireland 1.4%        
Government of Ireland, senior bond, 5.40%, 3/13/25 562,079,230 EUR   853,993,074
Lithuania 0.7%        
dGovernment of Lithuania, 144A,        
7.375%, 2/11/20 259,310,000     311,337,958
6.125%, 3/09/21 101,430,000     118,121,321
        429,459,279
Malaysia 4.0%        
Government of Malaysia,        
4.72%, 9/30/15 2,501,900,000 MYR   597,163,869
3.314%, 10/31/17 496,810,000 MYR   118,429,082
senior bond, 4.262%, 9/15/16 2,685,687,000 MYR   647,356,202
senior bond, 3.814%, 2/15/17 698,910,000 MYR   168,014,965
senior bond, 4.012%, 9/15/17 1,125,120,000 MYR   271,984,015
senior note, 3.172%, 7/15/16 2,282,810,000 MYR   544,337,269
senior note, 3.394%, 3/15/17 361,556,000 MYR   86,405,420
        2,433,690,822
Mexico 8.5%        
Government of Mexico,        
8.00%, 12/17/15 223,461,510 eMXN   1,355,734,733
7.25%, 12/15/16 210,196,400 eMXN   1,310,911,415
7.75%, 12/14/17 350,886,175 eMXN   2,248,615,006
 
 
franklintempleton.com Annual Report | 19

 


 

TEMPLETON INCOME TRUST
STATEMENT OF INVESTMENTS

Templeton Global Bond Fund (continued)        
  Principal Amount*     Value
Foreign Government and Agency Securities (continued)        
Mexico (continued)        
fMexican Udibonos, Index Linked,        
5.00%, 6/16/16 13,639,336 gMXN $ 84,954,906
3.50%, 12/14/17 11,556,285 gMXN   73,216,445
4.00%, 6/13/19 7,229,819 gMXN   46,558,328
2.50%, 12/10/20 5,788,599 gMXN   34,917,198
        5,154,908,031
Peru 0.1%        
Government of Peru, senior bond, 7.84%, 8/12/20 184,399,000 PEN   61,299,885
Philippines 0.8%        
Government of the Philippines,        
4.625%, 11/25/15 1,756,700,000 PHP   37,764,516
senior bond, 9.125%, 9/04/16 619,630,000 PHP   13,963,843
senior note, 1.625%, 4/25/16 21,648,470,000 PHP   460,953,490
        512,681,849
Poland 7.1%        
Government of Poland,        
6.25%, 10/24/15 5,168,683,000 PLN   1,377,218,576
5.00%, 4/25/16 2,472,048,000 PLN   668,442,093
4.75%, 10/25/16 3,039,400,000 PLN   832,104,694
4.75%, 4/25/17 285,830,000 PLN   79,291,711
5.75%, 9/23/22 495,970,000 PLN   156,197,300
h FRN, 1.79%, 1/25/17 2,005,988,000 PLN   531,100,530
h FRN, 1.79%, 1/25/21 1,721,975,000 PLN   449,216,419
senior note, 6.375%, 7/15/19 211,660,000     245,001,741
        4,338,573,064
Portugal 2.7%        
Government of Portugal,        
d144A, 5.125%, 10/15/24 585,500,000     622,310,385
cReg S, 3.875%, 2/15/30 820,750,000 EUR   1,010,737,071
csenior bond, Reg S, 4.95%, 10/25/23 5,772,600 EUR   7,750,605
csenior note, Reg S, 5.65%, 2/15/24 14,427,600 EUR   20,184,592
        1,660,982,653
Serbia 0.9%        
dGovernment of Serbia, senior note, 144A,        
5.25%, 11/21/17 100,490,000     104,453,326
4.875%, 2/25/20 190,710,000     193,294,120
7.25%, 9/28/21 211,710,000     239,243,944
        536,991,390
Singapore 0.4%        
Government of Singapore, senior note, 1.125%, 4/01/16 328,050,000 SGD   232,673,921
Slovenia 1.5%        
dGovernment of Slovenia, senior note, 144A,        
5.50%, 10/26/22 397,289,000     447,983,076
5.85%, 5/10/23 408,080,000     466,963,904
        914,946,980

 

20 | Annual Report

franklintempleton.com


 

TEMPLETON INCOME TRUST
STATEMENT OF INVESTMENTS

Templeton Global Bond Fund (continued)        
  Principal Amount*     Value
Foreign Government and Agency Securities (continued)        
South Korea 12.1%        
Government of Korea, senior bond, 5.625%, 11/03/25 13,150,000   $ 16,399,299
Korea Monetary Stabilization Bond, senior note,        
2.81%, 10/02/15 152,005,000,000 KRW   128,682,128
2.90%, 12/02/15 1,159,921,000,000 KRW   984,298,753
2.78%, 2/02/16 805,900,480,000 KRW   685,048,772
1.92%, 3/09/16 15,612,800,000 KRW   13,227,153
2.80%, 4/02/16 219,279,000,000 KRW   186,781,370
1.74%, 5/09/16 232,085,700,000 KRW   196,482,918
2.79%, 6/02/16 731,695,200,000 KRW   624,488,902
1.62%, 6/09/16 228,964,300,000 KRW   193,669,385
2.46%, 8/02/16 457,360,800,000 KRW   389,853,889
1.56%, 8/09/16 234,005,000,000 KRW   197,834,122
2.22%, 10/02/16 296,083,000,000 KRW   252,030,587
2.07%, 12/02/16 677,869,000,000 KRW   576,498,165
1.96%, 2/02/17 337,287,200,000 KRW   286,601,703
Korea Treasury Bond,        
senior bond, 5.25%, 9/10/15 26,000,000,000 KRW   22,008,251
senior bond, 4.00%, 3/10/16 798,759,900,000 KRW   684,065,167
senior note, 4.00%, 9/10/15 82,830,000,000 KRW   70,089,603
senior note, 2.75%, 6/10/16 1,066,957,400,000 KRW   910,375,747
senior note, 5.00%, 9/10/16 175,000,000,000 KRW   153,077,645
senior note, 3.00%, 12/10/16 950,742,540,000 KRW   818,014,318
        7,389,527,877
Sri Lanka 1.2%        
Government of Sri Lanka,        
8.00%, 1/01/17 476,700,000 LKR   3,577,623
8.25%, 3/01/17 907,610,000 LKR   6,829,563
8.00%, 6/15/17 557,250,000 LKR   4,181,528
10.60%, 7/01/19 14,422,400,000 LKR   114,307,699
10.60%, 9/15/19 19,332,700,000 LKR   153,946,319
8.00%, 11/01/19 557,250,000 LKR   4,079,724
9.25%, 5/01/20 1,951,660,000 LKR   14,780,707
11.20%, 7/01/22 1,288,300,000 LKR   10,395,653
A, 8.50%, 11/01/15 2,571,370,000 LKR   19,158,426
A, 6.40%, 8/01/16 2,094,100,000 LKR   15,495,407
A, 5.80%, 1/15/17 2,419,800,000 LKR   17,678,832
A, 7.50%, 8/15/18 1,127,970,000 LKR   8,251,821
A, 8.00%, 11/15/18 6,671,840,000 LKR   49,415,483
A, 9.00%, 5/01/21 10,254,020,000 LKR   76,080,486
A, 11.00%, 8/01/21 6,736,920,000 LKR   53,879,844
B, 11.00%, 9/01/15 3,443,800,000 LKR   25,588,509
B, 6.40%, 10/01/16 1,421,400,000 LKR   10,512,974
B, 5.80%, 7/15/17 810,400,000 LKR   5,841,955
B, 8.50%, 7/15/18 1,975,710,000 LKR   14,841,824
C, 8.50%, 4/01/18 7,340,380,000 LKR   55,224,089
D, 8.50%, 6/01/18 7,532,460,000 LKR   56,507,720
        720,576,186
iSupranational 0.3%        
Inter-American Development Bank, senior note, 7.50%, 12/05/24 2,473,000,000 MXN   165,597,417

 

franklintempleton.com

Annual Report

| 21


 

TEMPLETON INCOME TRUST        
STATEMENT OF INVESTMENTS        
 
 
 
 
Templeton Global Bond Fund (continued)        
  Principal Amount*     Value
Foreign Government and Agency Securities (continued)        
Ukraine 3.5%        
dGovernment of Ukraine,        
144A, 6.875%, 9/23/15 10,500,000   $ 7,619,063
144A, 9.25%, 7/24/17 707,200,000     521,118,000
144A, 7.75%, 9/23/20 181,290,000     131,747,975
senior bond, 144A, 6.58%, 11/21/16 135,700,000     99,993,938
senior bond, 144A, 7.80%, 11/28/22 572,565,000     419,761,716
senior note, 144A, 4.95%, 10/13/15 50,870,000 EUR   41,040,849
senior note, 144A, 6.25%, 6/17/16 349,346,000     256,987,651
senior note, 144A, 6.75%, 11/14/17 82,883,000     60,763,599
senior note, 144A, 7.95%, 2/23/21 554,350,000     405,368,437
senior note, 144A, 7.50%, 4/17/23 273,808,000     200,222,100
        2,144,623,328
Total Foreign Government and Agency Securities        
       (Cost $42,241,075,859)       37,978,687,346
Quasi-Sovereign and Corporate Bonds 1.6%        
Hungary 0.5%        
dHungarian Development Bank, senior note, 144A, 6.25%, 10/21/20 250,000,000     278,917,500
India 0.8%        
Food Corp. of India, secured note, 6, 9.95%, 3/07/22 22,550,000,000 INR   366,973,660
Mahanagar Telephone Nigam Ltd.,        
8.24%, 11/19/24 3,350,000,000 INR   50,592,086
8.29%, 11/28/24 3,050,000,000 INR   46,190,179
        463,755,925
South Korea 0.0%        
The Export-Import Bank of Korea, senior note, 4.625%, 2/20/17 14,090,000 EUR   16,801,644
Ukraine 0.3%        
dFinancing of Infrastructure Projects State Enterprise, 144A,        
8.375%, 11/03/17 23,747,000     16,873,075
7.40%, 4/20/18 238,810,000     170,152,125
        187,025,200
Total Quasi-Sovereign and Corporate Bonds (Cost $1,013,856,440)       946,500,269
Total Investments before Short Term Investments        
         (Cost $43,254,932,299)       38,925,187,615
 
Short Term Investments 30.1%        
Foreign Government and Agency Securities 11.9%        
Hungary 0.0%        
jHungary Treasury Bill, 9/16/15 4,151,970,000 HUF   14,850,046
 
Indonesia 0.1%        
jIndonesia Treasury Bill, 1/07/16 - 2/04/16 1,468,689,000,000 IDR   102,153,604
Malaysia 2.8%        
jBank of Negara Monetary Note, 9/08/15 - 11/24/15 5,684,100,000 MYR   1,350,660,498
Government of Malaysia, 3.197%, 10/15/15 771,235,000 MYR   183,877,499
jMalaysia Treasury Bill, 9/04/15 - 5/27/16 660,140,000 MYR   156,308,454
        1,690,846,451

 

22 | Annual Report

franklintempleton.com


 

TEMPLETON INCOME TRUST
STATEMENT OF INVESTMENTS

Templeton Global Bond Fund (continued)        
 
  Principal Amount*     Value
Short Term Investments (continued)        
Mexico 3.1%        
jMexico Treasury Bill, 9/17/15 - 5/26/16 3,181,879,540 k MXN $ 1,882,109,946
Philippines 0.4%        
Government of the Philippines, senior bond, 7.00%, 1/27/16 713,300,000 PHP   15,507,857
jPhilippine Treasury Bill, 9/02/15 - 8/03/16 10,417,220,000 PHP   221,687,937
        237,195,794
Singapore 3.4%        
jMonetary Authority of Singapore Treasury Bill,        
10/02/15 1,793,771,000 SGD   1,270,429,507
10/09/15 - 1/05/16 1,118,639,000 SGD   791,849,104
        2,062,278,611
South Korea 2.1%        
Korea Monetary Stabilization Bond,        
j9/08/15 - 12/15/15 1,095,986,800,000 KRW   925,021,888
senior note, 2.13%, 10/08/15 223,563,600,000 KRW   189,168,497
senior note, 1.57%, 7/09/16 199,245,100,000 KRW   168,461,812
        1,282,652,197
Total Foreign Government and Agency Securities        
(Cost $8,118,918,775)       7,272,086,649
U.S. Government and Agency Securities (Cost $1,523,936,971) 2.5%        
United States 2.5%        
jFHLB, 9/01/15 - 9/04/15 1,523,943,000     1,523,942,049
Total Investments before Money Market Funds        
(Cost $52,897,788,045)       47,721,216,313
 
  Shares      
Money Market Funds (Cost $9,570,839,633) 15.7%        
United States 15.7%        
l,mInstitutional Fiduciary Trust Money Market Portfolio 9,570,839,633     9,570,839,633
Total Investments (Cost $62,468,627,678) 94.0%       57,292,055,946
Other Assets, less Liabilities 6.0%       3,640,884,923
Net Assets 100.0%     $ 60,932,940,869

 

Rounds to less than 0.1% of net assets.
*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(f).
cSecurity 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 Trust’s Board of Trustees. At August 31, 2015, the aggregate value of these
securities was $1,349,388,762, representing 2.21% of net assets.
dSecurity 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 Trust’s Board of Trustees. At
August 31, 2015, the aggregate value of these securities was $5,290,979,041, representing 8.68% of net assets.
ePrincipal amount is stated in 100 Mexican Peso Units.
fPrincipal amount of security is adjusted for inflation. See Note 1(f).
gPrincipal amount is stated in 100 Unidad de Inversion Units.
hThe coupon rate shown represents the rate at period end.
iA supranational organization is an entity formed by two or more central governments through international treaties.

franklintempleton.com

Annual Report

| 23


 

TEMPLETON INCOME TRUST
STATEMENT OF INVESTMENTS

Templeton Global Bond Fund (continued)
jThe security is traded on a discount basis with no stated coupon rate.
kPrincipal amount is stated in 10 Mexican Peso Units.
lNon-income producing.
mSee Note 3(f) regarding investments in Institutional Fiduciary Trust Money Market Portfolio.

At August 31, 2015, the Fund had the following forward exchange contracts outstanding. See Note 1(c).

Forward Exchange Contracts                    
        Contract   Settlement   Unrealized   Unrealized  
Currency Counterpartya Type Quantity Amount*   Date Appreciation Depreciation  
OTC Forward Exchange Contracts                    
Chilean Peso MSCO Buy 26,179,074,000 42,027,732   9/01/15 $ $ (4,247,692 )
Chilean Peso MSCO Sell 26,179,074,000 37,345,327   9/01/15     (434,713 )
Chilean Peso JPHQ Buy 31,264,830,000 50,382,451   9/02/15     (5,267,126 )
Chilean Peso JPHQ Sell 31,264,830,000 45,377,112   9/02/15   261,787    
Euro DBAB Buy 88,663,500 99,613,442   9/02/15     (174,449 )
Euro DBAB Sell 88,663,500 117,167,042   9/02/15   17,728,049    
Chilean Peso BZWS Buy 30,271,200,000 48,464,938   9/03/15     (4,787,460 )
Chilean Peso BZWS Sell 30,271,200,000 43,618,444   9/03/15     (59,034 )
Chilean Peso MSCO Buy 37,199,100,000 59,563,087   9/03/15     (5,889,534 )
Chilean Peso MSCO Sell 37,199,100,000 53,389,451   9/03/15     (284,102 )
Chilean Peso DBAB Buy 24,242,714,800 38,480,500   9/04/15     (3,504,587 )
Mexican Peso HSBK Buy 615,247,100 45,768,800   9/04/15     (8,940,741 )
Chilean Peso DBAB Buy 43,749,547,500 70,850,464   9/08/15     (7,754,584 )
Euro DBAB Buy 104,415,800 120,255,364   9/08/15     (3,139,467 )
Euro DBAB Sell 104,415,800 137,747,412   9/08/15   20,631,515    
Euro JPHQ Buy 345,200,000 409,171,824   9/08/15     (21,985,140 )
Euro JPHQ Sell 410,375,000 533,938,913   9/08/15   73,649,992    
Polish Zloty DBAB Buy 166,560,000 39,052,755 EUR 9/08/15   278,281    
Singapore Dollar MSCO Buy 82,778,200 60,550,216   9/08/15     (1,903,432 )
Chilean Peso DBAB Buy 12,019,520,000 19,713,826   9/09/15     (2,380,797 )
Chilean Peso BZWS Buy 20,031,600,000 29,228,278   9/10/15     (343,907 )
Indian Rupee JPHQ Buy 7,341,887,767 113,004,275   9/10/15     (2,583,399 )
Indian Rupee JPHQ Sell 7,341,887,767 110,437,542   9/10/15   16,665    
Polish Zloty CITI Buy 61,037,800 14,568,624 EUR 9/10/15     (188,101 )
Polish Zloty DBAB Buy 406,382,000 96,753,012 EUR 9/10/15     (979,726 )
Singapore Dollar GSCO Buy 87,786,250 64,213,481   9/10/15     (2,024,871 )
Indian Rupee CITI Buy 3,154,839,000 48,187,552   9/11/15     (749,835 )
Indian Rupee CITI Sell 3,154,839,000 47,242,273   9/11/15     (195,443 )
Mexican Peso CITI Buy 1,158,913,000 85,584,849   9/11/15     (16,249,339 )
Polish Zloty BZWS Buy 52,182,000 12,403,716 EUR 9/14/15     (105,931 )
Polish Zloty DBAB Buy 365,020,000 86,956,017 EUR 9/14/15     (954,556 )
Chilean Peso DBAB Buy 21,221,448,500 33,574,523   9/15/15     (2,988,574 )
Singapore Dollar HSBK Buy 240,069,100 172,215,997   9/16/15     (2,200,301 )
Chilean Peso DBAB Buy 13,621,865,000 21,364,280   9/17/15     (1,735,045 )
Malaysian Ringgit HSBK Buy 418,125,000 111,369,327   9/17/15     (11,548,775 )
Malaysian Ringgit HSBK Sell 418,125,000 98,614,387   9/17/15     (1,206,165 )
Japanese Yen BZWS Sell 24,270,000,000 227,643,649   9/18/15   27,399,809    
Singapore Dollar DBAB Buy 109,530,000 78,685,345   9/18/15     (1,124,597 )
Chilean Peso DBAB Buy 13,453,500,000 21,019,452   9/21/15     (1,639,981 )
Euro BZWS Sell 58,343,508 75,926,783   9/21/15   10,474,616    
Singapore Dollar HSBK Buy 217,756,000 172,548,336   9/21/15     (18,373,586 )
Chilean Peso JPHQ Buy 18,232,450,000 28,350,879   9/22/15     (2,089,856 )
Euro DBAB Buy 203,050,000 233,902,635   9/23/15     (6,106,117 )

 

24 | Annual Report

franklintempleton.com


 

            TEMPLETON INCOME TRUST  
            STATEMENT OF INVESTMENTS  
 
 
 
 
Templeton Global Bond Fund (continued)                  
Forward Exchange Contracts (continued)                    
        Contract   Settlement   Unrealized   Unrealized  
Currency Counterpartya Type Quantity Amount*                       Date                   Appreciation          Depreciation  
Euro DBAB Sell 203,050,000 262,228,923   9/23/15 $ 34,432,404 $  
Hungarian Forint JPHQ Buy 9,861,822,000 31,344,188 EUR 9/23/15   117,003    
Chilean Peso MSCO Buy 31,194,000,000 48,958,644   9/24/15     (4,036,797 )
Euro BZWS Sell 87,741,063 113,131,572   9/24/15   14,695,726    
Polish Zloty DBAB Buy 318,369,688 75,935,374 EUR 9/24/15     (975,062 )
Hungarian Forint JPHQ Buy 7,894,536,000 25,064,406 EUR 9/25/15   123,098    
Chilean Peso DBAB Buy 45,276,995,000 71,031,651   9/28/15     (5,853,197 )
Euro CITI Sell 7,237,832 9,334,632   9/28/15   1,214,107    
Euro DBAB Buy 176,088,661 202,863,118   9/28/15     (5,299,500 )
Euro DBAB Sell 176,088,661 226,772,260   9/28/15   29,208,642    
Indian Rupee DBAB Buy 900,181,000 13,436,680   9/28/15   47,756    
Indian Rupee HSBK Buy 3,869,965,050 59,572,017   9/28/15     (1,601,121 )
Indian Rupee HSBK Buy 22,984,769,550 297,683,518 EUR 9/28/15   10,317,218    
Indian Rupee HSBK Sell 3,869,965,050 57,829,723   9/28/15     (141,173 )
Malaysian Ringgit DBAB Buy 210,507,000 63,516,686   9/28/15     (13,213,122 )
Malaysian Ringgit DBAB Sell 210,507,000 57,847,486   9/28/15   7,543,922    
Malaysian Ringgit HSBK Buy 1,175,362,700 290,294,464   9/28/15   4,277,930   (13,703,194 )
Malaysian Ringgit HSBK Sell 218,283,000 51,481,840   9/28/15     (679,907 )
Mexican Peso HSBK Buy 1,303,182,600 95,576,282   9/28/15     (17,707,081 )
Euro BZWS Sell 151,820,000 193,844,535   9/29/15   23,506,801    
Japanese Yen JPHQ Sell 8,250,436,116 75,943,594   9/29/15   7,858,975    
Chilean Peso JPHQ Buy 24,540,000,000 34,835,687   9/30/15   484,337    
Euro HSBK Buy 135,560,000 156,485,313   9/30/15     (4,388,631 )
Euro HSBK Sell 135,560,000 172,735,297   9/30/15   20,638,615    
Indian Rupee DBAB Buy 4,138,651,600 63,318,441   9/30/15     (1,350,241 )
Indian Rupee DBAB Sell 4,138,651,600 62,067,361   9/30/15   99,160    
Japanese Yen JPHQ Sell 2,117,676,000 19,510,109   9/30/15   2,034,226    
Malaysian Ringgit HSBK Buy 315,490,600 84,606,881   9/30/15     (9,202,818 )
Malaysian Ringgit HSBK Sell 315,490,600 74,285,519   9/30/15     (1,118,544 )
Mexican Peso HSBK Buy 603,492,100 43,690,154   9/30/15     (7,634,945 )
Chilean Peso DBAB Buy 15,347,561,000 21,800,513   10/01/15   287,118    
Euro DBAB Buy 301,000,000 356,510,420   10/01/15     (18,786,337 )
Euro DBAB Sell 371,450,000 473,829,049   10/01/15   57,059,578    
Euro DBAB Buy 3,565,000 4,107,422   10/05/15     (107,196 )
Euro DBAB Sell 3,565,000 4,513,647   10/05/15   513,421    
Indian Rupee HSBK Buy 3,044,997,250 46,887,011   10/05/15     (1,329,386 )
Indian Rupee HSBK Sell 3,044,997,250 45,440,938   10/05/15     (116,687 )
Chilean Peso DBAB Buy 23,157,342,000 36,288,243   10/07/15     (2,977,944 )
Euro DBAB Sell 67,415,000 84,729,194   10/07/15   9,081,408    
Euro JPHQ Buy 210,255,000 241,526,226   10/07/15     (5,594,678 )
Euro JPHQ Sell 210,255,000 266,470,879   10/07/15   30,539,331    
Japanese Yen JPHQ Sell 78,253,000,000 722,390,953   10/07/15   76,555,236    
Malaysian Ringgit HSBK Buy 497,925,000 132,268,562   10/07/15     (13,289,498 )
Malaysian Ringgit HSBK Sell 497,925,000 117,213,983   10/07/15     (1,765,080 )
Philippine Peso HSBK Buy 2,511,000,000 55,479,452   10/07/15     (1,991,897 )
Chilean Peso CITI Buy 20,803,900,000 32,201,687   10/08/15     (2,279,183 )
Chilean Peso MSCO Buy 46,712,800,000 72,259,420   10/08/15     (5,071,829 )
Euro DBAB Sell 319,800,000 405,682,290   10/09/15   46,815,837    
Euro GSCO Sell 102,935,000 130,403,205   10/09/15   14,893,766    
Indian Rupee DBAB Buy 4,490,441,000 69,906,562   10/09/15     (2,764,499 )
Indian Rupee DBAB Sell 4,490,441,000 67,242,303   10/09/15   100,241    
Japanese Yen HSBK Sell 38,917,825,000 361,194,691   10/09/15   39,990,307    
Euro HSBK Buy 133,988,000 154,701,205   10/13/15     (4,335,171 )
 
 
franklintempleton.com               Annual Report | 25  

 


 

TEMPLETON INCOME TRUST                    
STATEMENT OF INVESTMENTS                    
 
 
 
 
Templeton Global Bond Fund (continued)                  
Forward Exchange Contracts (continued)                    
        Contract   Settlement   Unrealized   Unrealized  
Currency Counterpartya Type Quantity Amount*                      Date                    Appreciation              Depreciation  
Euro HSBK Sell 133,988,000 145,371,620   10/13/15 $ $ (4,994,413 )
Japanese Yen BZWS Sell 19,705,372,000 183,005,754   10/13/15   20,360,564    
Japanese Yen DBAB Sell 19,434,250,000 180,598,922   10/13/15   20,191,533    
Euro JPHQ Sell 102,960,000 130,332,946   10/14/15   14,785,664    
Chilean Peso DBAB Buy 28,491,051,750 44,028,824   10/15/15     (3,073,986 )
Indian Rupee JPHQ Buy 13,393,792,667 207,120,347   10/19/15     (7,162,357 )
Indian Rupee JPHQ Sell 13,393,792,667 200,011,837   10/19/15   53,848    
Malaysian Ringgit JPHQ Buy 1,260,410,373 317,323,860 EUR 10/19/15     (55,094,266 )
Euro HSBK Buy 137,930,000 159,269,840   10/20/15     (4,461,592 )
Euro HSBK Sell 137,930,000 176,605,572   10/20/15   21,797,324    
Indian Rupee DBAB Buy 4,833,959,000 75,165,937   10/20/15     (3,010,152 )
Indian Rupee DBAB Sell 4,833,959,000 72,256,487   10/20/15   100,702    
Malaysian Ringgit JPHQ Buy 244,314,016 73,001,469   10/20/15     (14,648,069 )
Malaysian Ringgit JPHQ Sell 244,314,016 57,404,609   10/20/15     (948,791 )
Mexican Peso DBAB Buy 1,955,968,680 141,398,733   10/21/15     (24,742,011 )
Japanese Yen BZWS Sell 9,218,756,500 86,634,306   10/22/15   10,534,733    
Mexican Peso CITI Buy 629,982,970 45,495,990   10/22/15     (7,926,001 )
Mexican Peso DBAB Buy 1,798,400,870 129,792,211   10/22/15     (22,541,849 )
Chilean Peso DBAB Buy 20,283,160,000 30,966,656   10/23/15     (1,830,018 )
Chilean Peso MSCO Buy 30,202,971,000 46,006,049   10/23/15     (2,619,661 )
Indian Rupee DBAB Buy 725,918,000 11,283,232   10/23/15     (452,574 )
Indian Rupee DBAB Sell 725,918,000 10,844,308   10/23/15   13,650    
Malaysian Ringgit HSBK Buy 190,522,200 56,979,454   10/23/15     (11,478,573 )
Malaysian Ringgit HSBK Sell 190,522,200 44,807,667   10/23/15     (693,214 )
Malaysian Ringgit JPHQ Buy 903,500,000 28,844,237,500 JPY 10/23/15     (22,332,855 )
Chilean Peso DBAB Buy 16,894,600,000 24,575,393   10/26/15     (312,536 )
Chilean Peso JPHQ Buy 13,842,935,000 20,990,045   10/26/15     (1,109,778 )
Euro DBAB Sell 107,566,000 136,538,902   10/26/15   15,797,965    
Euro JPHQ Buy 7,387,013 8,772,078   10/26/15     (480,286 )
Euro JPHQ Sell 7,387,013 9,383,797   10/26/15   1,092,005    
Malaysian Ringgit DBAB Buy 136,438,000 40,944,093   10/26/15     (8,362,973 )
Malaysian Ringgit DBAB Sell 136,438,000 37,426,416   10/26/15   4,845,296    
Malaysian Ringgit HSBK Buy 90,961,633 27,299,410   10/26/15     (5,577,955 )
Malaysian Ringgit HSBK Sell 90,961,633 21,388,646   10/26/15     (332,809 )
Malaysian Ringgit JPHQ Buy 32,000,000 9,598,714   10/26/15     (1,957,178 )
Malaysian Ringgit JPHQ Sell 32,000,000 7,517,914   10/26/15     (123,622 )
Singapore Dollar DBAB Buy 1,115,826,850 878,396,324   10/26/15     (89,583,726 )
Singapore Dollar HSBK Buy 356,099,500 280,451,661   10/26/15     (28,713,883 )
Euro BZWS Sell 280,805,419 356,614,458   10/27/15   41,409,987    
Indian Rupee DBAB Buy 3,034,046,000 47,014,836   10/27/15     (1,774,929 )
Indian Rupee DBAB Sell 3,034,046,000 45,297,790   10/27/15   57,884    
Indian Rupee JPHQ Buy 2,855,265,000 44,230,781   10/27/15     (1,656,634 )
Indian Rupee JPHQ Sell 2,855,265,000 42,579,354   10/27/15   5,206    
Chilean Peso DBAB Buy 17,914,400,000 27,058,983   10/28/15     (1,335,894 )
Euro DBAB Sell 175,760,000 223,584,296   10/28/15   26,290,109    
Indian Rupee JPHQ Buy 41,308,437,210 536,682,308 EUR 10/28/15   13,408,119    
Chilean Peso JPHQ Buy 23,075,040,000 34,473,803   10/29/15     (1,343,398 )
Euro GSCO Sell 139,330,000 177,227,760   10/29/15   20,824,340    
Indian Rupee JPHQ Buy 5,438,122,010 83,905,968   10/29/15     (2,844,461 )
Indian Rupee JPHQ Sell 5,438,122,010 81,066,180   10/29/15   4,672    
Euro DBAB Sell 189,168,918 241,559,250   10/30/15   29,206,080    
Indian Rupee DBAB Buy 4,774,662,292 73,552,527   10/30/15     (2,391,616 )
Indian Rupee DBAB Sell 4,774,662,292 71,242,350   10/30/15   81,439    
 
 
26 | Annual Report               franklintempleton.com  

 


 

TEMPLETON INCOME TRUST
STATEMENT OF INVESTMENTS

Templeton Global Bond Fund (continued)                  
Forward Exchange Contracts (continued)                    
        Contract   Settlement   Unrealized   Unrealized  
Currency Counterpartya Type Quantity Amount*                     Date                     Appreciation       Depreciation  
Indian Rupee HSBK Buy 6,669,238,000 102,866,049   10/30/15 $ $ (3,468,642 )
Indian Rupee HSBK Sell 6,669,238,000 99,082,425   10/30/15     (314,982 )
Malaysian Ringgit JPHQ Buy 115,374,900 34,548,555   10/30/15     (7,000,945 )
Malaysian Ringgit JPHQ Sell 115,374,900 27,102,396   10/30/15     (445,214 )
Chilean Peso DBAB Buy 10,855,470,000 16,152,291   11/02/15     (572,185 )
Chilean Peso JPHQ Buy 13,008,500,000 19,166,789   11/03/15     (498,392 )
Euro DBAB Sell 11,263,065 14,264,672   11/03/15   1,620,298    
Mexican Peso CITI Buy 1,132,383,200 82,310,245   11/03/15     (14,842,161 )
Chilean Peso DBAB Buy 21,710,940,000 31,991,365   11/04/15     (837,175 )
Euro UBSW Sell 119,224,000 149,894,374   11/04/15   16,046,221    
Chilean Peso BZWS Buy 36,205,800,000 52,990,560   11/05/15     (1,041,938 )
Euro DBAB Sell 84,940,000 106,534,296   11/05/15   11,173,713    
Indian Rupee HSBK Buy 3,044,997,250 46,927,477   11/05/15     (1,589,852 )
Indian Rupee HSBK Sell 3,044,997,250 45,191,411   11/05/15     (146,214 )
Japanese Yen BOFA Sell 6,474,170,000 56,990,933   11/05/15   3,537,171    
Japanese Yen SCNY Sell 12,949,800,000 114,361,157   11/05/15   7,441,579    
Chilean Peso DBAB Buy 35,759,440,000 52,341,101   11/06/15     (1,037,879 )
Euro BZWS Sell 79,210,113 99,506,912   11/06/15   10,577,542    
Euro DBAB Sell 65,665,000 82,452,257   11/06/15   8,730,015    
Indian Rupee DBAB Buy 7,909,375,896 121,514,455   11/06/15     (3,769,327 )
Indian Rupee DBAB Sell 7,909,375,896 117,892,024   11/06/15   146,896    
Japanese Yen BZWS Sell 6,464,800,000 57,317,138   11/06/15   3,939,982    
Chilean Peso MSCO Buy 37,874,227,200 54,916,449   11/09/15     (594,935 )
Euro GSCO Sell 226,520,861 255,028,511   11/09/15   699,075    
Mexican Peso CITI Buy 666,525,500 44,417,266   11/09/15     (4,722,061 )
South Korean Won JPHQ Buy 861,667,250,000 91,522,629,264 JPY 11/09/15     (28,611,264 )
Chilean Peso CITI Buy 29,155,220,000 42,312,198   11/10/15     (500,051 )
Chilean Peso MSCO Buy 27,899,910,000 40,393,673   11/10/15     (381,794 )
Euro DBAB Sell 70,759,000 88,374,453   11/10/15   8,927,351    
Indian Rupee DBAB Buy 4,385,197,150 67,856,049   11/10/15     (2,617,322 )
Indian Rupee DBAB Sell 4,385,197,150 65,314,226   11/10/15   75,500    
Indian Rupee JPHQ Buy 5,912,162,767 91,512,464   11/10/15     (3,557,019 )
Indian Rupee JPHQ Sell 5,912,162,767 87,952,436   11/10/15     (3,009 )
Japanese Yen CITI Sell 9,190,446,650 80,616,185   11/10/15   4,730,200    
South Korean Won DBAB Buy 228,000,000,000 24,245,002,126 JPY 11/10/15     (7,808,121 )
Chilean Peso DBAB Buy 53,304,740,500 77,850,954   11/12/15     (1,420,205 )
Euro DBAB Sell 377,328,000 469,167,906   11/12/15   45,494,407    
Euro JPHQ Sell 101,421,123 127,085,738   11/12/15   13,207,515    
Euro MSCO Sell 178,075,514 222,631,603   11/12/15   22,683,876    
Euro UBSW Sell 96,724,000 120,567,675   11/12/15   11,963,502    
Japanese Yen CITI Sell 24,889,202,000 213,323,881   11/12/15   7,806,649    
Japanese Yen HSBK Sell 6,367,072,000 55,813,565   11/12/15   3,238,838    
Japanese Yen JPHQ Sell 9,028,069,000 79,324,403   11/12/15   4,777,066    
Mexican Peso CITI Buy 435,292,000 31,375,788   11/12/15     (5,457,271 )
Singapore Dollar HSBK Buy 139,904,000 100,875,333   11/12/15     (2,037,708 )
Euro BZWS Sell 131,886,000 164,618,786   11/13/15   16,531,113    
Euro CITI Buy 41,200,000 47,641,620   11/13/15     (1,380,363 )
Euro CITI Sell 100,069,509 112,055,835   11/13/15     (306,817 )
Euro GSCO Sell 316,018,000 353,001,587   11/13/15     (1,837,974 )
Euro SCNY Sell 39,305,000 43,943,776   11/13/15     (189,688 )
Indian Rupee HSBK Buy 6,355,572,000 98,193,438   11/13/15     (3,687,775 )
Indian Rupee HSBK Sell 6,355,572,000 94,198,488   11/13/15     (307,175 )
Japanese Yen GSCO Sell 16,608,958,000 138,793,134   11/13/15   1,646,292    
 
 
franklintempleton.com               Annual Report | 27  

 


 

TEMPLETON INCOME TRUST                    
STATEMENT OF INVESTMENTS                    
 
 
 
 
Templeton Global Bond Fund (continued)                  
Forward Exchange Contracts (continued)                    
        Contract   Settlement   Unrealized   Unrealized  
Currency Counterpartya Type Quantity Amount*                     Date                     Appreciation      Depreciation  
Japanese Yen SCNY Sell 12,414,879,000 103,736,549   11/13/15 $ 1,221,903 $  
Mexican Peso CITI Buy 906,059,000 65,511,659   11/13/15     (11,566,143 )
Chilean Peso DBAB Buy 28,491,051,750 41,492,830   11/16/15     (656,841 )
Chilean Peso JPHQ Buy 32,660,995,000 47,393,158   11/16/15     (580,424 )
Euro DBAB Sell 102,118,400 127,796,072   11/16/15   13,126,536    
Euro GSCO Sell 305,905,000 344,782,466   11/16/15   1,279,391    
Euro MSCO Sell 231,893,680 290,179,336   11/16/15   29,784,140    
Indian Rupee DBAB Buy 2,891,384,000 44,719,846   11/16/15     (1,746,823 )
Indian Rupee DBAB Sell 2,891,384,000 43,032,951   11/16/15   59,928    
Japanese Yen CITI Sell 12,414,890,000 103,743,576   11/16/15   1,224,480    
Japanese Yen MSCO Sell 3,400,000,000 29,649,008   11/16/15   1,572,648    
Japanese Yen SCNY Sell 9,153,053,700 79,951,902   11/16/15   4,368,245    
Singapore Dollar DBAB Buy 95,420,000 71,086,940   11/16/15     (3,685,972 )
Chilean Peso MSCO Buy 88,618,710,000 128,233,588   11/17/15     (1,229,381 )
Euro UBSW Sell 180,000,000 225,189,000   11/17/15   23,061,918    
South Korean Won JPHQ Buy 743,500,000,000 79,933,344,084 JPY 11/17/15     (32,835,632 )
Australian Dollar JPHQ Sell 897,312,000 721,797,773   11/18/15   85,592,979    
Euro DBAB Sell 69,738,000 86,986,580   11/18/15   8,674,378    
Euro UBSW Sell 59,525,000 74,221,723   11/18/15   7,378,196    
Japanese Yen BOFA Sell 42,218,712,250 355,708,720   11/18/15   7,067,133    
Japanese Yen DBAB Sell 10,792,263,000 93,052,794   11/18/15   3,930,424    
Singapore Dollar HSBK Buy 84,114,500 59,829,646   11/18/15     (418,919 )
Chilean Peso BZWS Buy 28,455,376,000 40,513,673   11/19/15   271,016   (11,639 )
Euro DBAB Sell 126,551,139 158,514,407   11/19/15   16,401,358    
Indian Rupee JPHQ Buy 2,855,265,000 43,181,444   11/19/15     (766,040 )
Indian Rupee JPHQ Sell 2,855,265,000 42,410,175   11/19/15     (5,229 )
Japanese Yen CITI Sell 13,358,646,000 115,354,657   11/19/15   5,037,565    
Malaysian Ringgit DBAB Buy 79,333,360 23,213,179   11/19/15     (4,374,818 )
Malaysian Ringgit DBAB Sell 79,333,360 21,729,214   11/19/15   2,890,853    
Euro BZWS Sell 449,792,000 565,412,556   11/20/15   60,300,689    
Euro DBAB Sell 133,816,000 167,960,491   11/20/15   17,686,476    
Japanese Yen CITI Sell 15,005,634,000 129,470,526   11/20/15   5,550,679    
Malaysian Ringgit HSBK Buy 218,456,900 63,747,673   11/20/15     (11,887,483 )
Malaysian Ringgit HSBK Sell 218,456,900 51,286,982   11/20/15     (573,208 )
Chilean Peso DBAB Buy 20,505,700,000 29,747,291   11/23/15     (376,482 )
Euro GSCO Sell 202,057,000 226,808,983   11/23/15     (111,444 )
Euro MSCO Sell 57,920,996 72,850,132   11/23/15   7,801,869    
Indian Rupee JPHQ Buy 3,511,942,000 54,313,141   11/23/15     (2,176,776 )
Indian Rupee JPHQ Sell 3,511,942,000 52,129,167   11/23/15     (7,197 )
Japanese Yen HSBK Sell 2,816,138,000 24,090,145   11/24/15   832,536    
South Korean Won JPHQ Buy 743,500,000,000 81,287,035,618 JPY 11/24/15     (44,195,049 )
Euro MSCO Sell 100,965,680 125,870,885   11/25/15   12,477,071    
Chilean Peso CITI Buy 53,031,580,000 74,977,492   11/27/15   951,628    
Chilean Peso JPHQ Buy 10,953,800,000 15,474,747   11/27/15   208,594    
Indian Rupee CITI Buy 3,154,839,000 40,482,097 EUR 11/27/15   1,337,626    
Malaysian Ringgit HSBK Buy 1,697,940,404 346,024,130 EUR 11/27/15   13,677,130    
Singapore Dollar BZWS Buy 128,018,000 95,603,600   11/27/15     (5,214,132 )
Chilean Peso DBAB Buy 39,886,100,000 57,861,288   11/30/15     (769,317 )
Chilean Peso MSCO Buy 26,179,074,000 37,033,631   11/30/15   438,443    
Euro DBAB Sell 277,024,466 345,347,010   11/30/15   34,193,829    
Indian Rupee DBAB Buy 37,183,634,938 479,240,127 EUR 11/30/15   13,088,999    
Malaysian Ringgit HSBK Buy 337,619,000 91,582,531   11/30/15     (11,630,025 )
Malaysian Ringgit HSBK Sell 337,619,000 79,225,390   11/30/15     (727,116 )
 
 
28 | Annual Report               franklintempleton.com  

 


 

            TEMPLETON INCOME TRUST  
            STATEMENT OF INVESTMENTS  
 
 
 
 
Templeton Global Bond Fund (continued)                  
Forward Exchange Contracts (continued)                    
                                        Contract           Settlement   Unrealized   Unrealized  
Currency Counterpartya Type Quantity Amount*                  Date                     Appreciation          Depreciation  
Malaysian Ringgit JPHQ Buy 913,144,316 186,466,340 EUR 11/30/15 $ 6,805,753 $  
Mexican Peso CITI Buy 1,775,831,900 127,308,904   11/30/15     (21,705,914 )
Singapore Dollar DBAB Buy 265,323,000 197,472,355   11/30/15     (10,155,414 )
Chilean Peso JPHQ Buy 31,264,830,000 45,014,513   12/01/15     (266,586 )
Euro GSCO Sell 203,544,000 222,388,104   12/01/15     (6,236,602 )
Malaysian Ringgit HSBK Buy 1,546,040,876 320,257,043 EUR 12/01/15   6,407,971    
Chilean Peso BZWS Buy 30,271,200,000 43,281,670   12/02/15   40,469    
Chilean Peso MSCO Buy 37,199,100,000 52,986,397   12/02/15   250,494    
Euro CITI Sell 72,203,000 90,112,954   12/04/15   9,008,201    
Euro DBAB Sell 131,065,000 163,529,801   12/04/15   16,306,078    
Euro CITI Sell 63,090,000 78,174,819   12/07/15   7,302,311    
Euro HSBK Buy 21,570,052 24,471,008   12/09/15     (239,193 )
Euro HSBK Sell 21,570,052 26,571,716   12/09/15   2,339,901    
Euro SCNY Sell 226,537,356 279,846,127   12/09/15   25,353,868    
Japanese Yen HSBK Sell 42,738,600,000 341,348,988   12/09/15     (11,730,089 )
Singapore Dollar DBAB Buy 150,355,000 111,172,317   12/09/15     (5,048,532 )
Singapore Dollar GSCO Buy 87,786,250 64,796,464   12/09/15     (2,835,045 )
Euro MSCO Sell 44,121,607 55,302,243   12/11/15   5,733,997    
Mexican Peso CITI Buy 3,720,141,250 245,098,548   12/11/15     (24,070,952 )
Euro DBAB Sell 129,470,000 161,105,995   12/14/15   15,644,653    
Singapore Dollar JPHQ Buy 135,883,000 100,983,205   12/14/15     (5,087,228 )
Euro BOFA Sell 177,095,041 220,208,829   12/15/15   21,236,090    
Euro JPHQ Buy 127,432,000 146,539,154   12/15/15     (3,364,654 )
Euro JPHQ Sell 127,432,000 159,077,189   12/15/15   15,902,688    
Malaysian Ringgit DBAB Buy 151,275,000 42,249,686   12/15/15     (6,418,756 )
Malaysian Ringgit DBAB Sell 151,275,000 41,360,219   12/15/15   5,529,289    
Mexican Peso CITI Buy 1,460,250,600 93,045,151   12/15/15     (6,314,278 )
Polish Zloty DBAB Buy 35,195,600 8,287,167 EUR 12/15/15     (21,737 )
Singapore Dollar DBAB Buy 150,260,000 111,472,977   12/16/15     (5,436,619 )
Euro CITI Sell 149,674,000 186,857,961   12/17/15   18,686,994    
Australian Dollar CITI Sell 121,932,400 93,496,057   12/18/15   7,165,573    
Mexican Peso CITI Buy 973,603,510 64,116,135   12/18/15     (6,303,479 )
Japanese Yen DBAB Sell 24,707,170,000 211,497,774   12/21/15   7,320,954    
Japanese Yen HSBK Sell 24,745,070,000 211,586,746   12/21/15   7,096,726    
Japanese Yen BZWS Sell 12,521,550,000 105,897,651   12/22/15   2,418,583    
Japanese Yen CITI Sell 19,533,646,000 165,427,219   12/22/15   3,999,643    
Singapore Dollar HSBK Buy 163,895,000 121,427,989   12/22/15     (5,788,645 )
Euro BZWS Sell 57,908,589 70,580,499   1/05/16   5,490,584    
Japanese Yen DBAB Sell 10,434,667,000 87,609,711   1/07/16   1,341,909    
Japanese Yen GSCO Sell 6,380,360,000 53,881,349   1/08/16   1,130,883    
Euro BZWS Sell 121,560,662 144,649,895   1/11/16   7,997,816    
Euro UBSW Sell 23,478,000 27,908,768   1/11/16   1,516,040    
Malaysian Ringgit JPHQ Buy 224,973,000 60,861,085   1/11/16     (7,555,140 )
Malaysian Ringgit JPHQ Sell 224,973,000 52,563,785   1/11/16     (742,159 )
Mexican Peso CITI Buy 1,413,203,530 88,061,038   1/11/16     (4,307,688 )
Euro CITI Sell 29,000,000 34,457,800   1/13/16   1,856,219    
Euro SCNY Sell 49,935,936 59,311,408   1/13/16   3,173,805    
Malaysian Ringgit DBAB Buy 1,263,085,810 294,281,543 EUR 1/13/16     (31,540,936 )
Japanese Yen CITI Sell 3,332,090,000 28,105,621   1/14/16   552,947    
Japanese Yen SCNY Sell 3,331,470,000 28,275,929   1/14/16   728,382    
Euro CITI Sell 192,914,073 228,689,988   1/15/16   11,808,708    
Euro JPHQ Sell 102,670,589 121,477,380   1/15/16   6,051,230    
Japanese Yen BZWS Sell 22,053,780,000 187,702,927   1/15/16   5,338,107    
 
 
franklintempleton.com               Annual Report | 29  

 


 

TEMPLETON INCOME TRUST
STATEMENT OF INVESTMENTS

Templeton Global Bond Fund (continued)                  
Forward Exchange Contracts (continued)                    
        Contract   Settlement   Unrealized   Unrealized  
Currency Counterpartya Type Quantity Amount*                   Date                    Appreciation        Depreciation  
Japanese Yen JPHQ Sell 14,336,430,000 121,561,101   1/15/16 $ 3,011,788 $  
Malaysian Ringgit JPHQ Buy 54,220,000 14,708,914   1/15/16     (1,861,148 )
Malaysian Ringgit JPHQ Buy 1,281,008,255 297,798,088 EUR 1/15/16     (31,252,975 )
Malaysian Ringgit JPHQ Sell 54,220,000 12,665,265   1/15/16     (182,501 )
Euro BZWS Sell 177,042,000 201,734,413   1/19/16   4,503,220   (1,822,135 )
Euro DBAB Sell 137,436,000 162,435,608   1/19/16   7,912,427    
Euro GSCO Sell 198,383,000 228,349,881   1/19/16   6,790,439   (1,488,175 )
Euro JPHQ Sell 75,805,000 89,574,978   1/19/16   4,345,273    
Japanese Yen HSBK Sell 12,607,090,000 102,698,724   1/19/16     (1,561,062 )
Japanese Yen SCNY Sell 10,082,050,000 81,663,805   1/19/16     (1,714,070 )
Malaysian Ringgit JPHQ Buy 25,017,400 6,730,535   1/19/16     (802,195 )
Malaysian Ringgit JPHQ Sell 25,017,400 5,842,457   1/19/16     (85,884 )
Euro BZWS Sell 158,260,000 172,611,017   1/20/16     (5,328,760 )
Euro GSCO Sell 91,986,000 100,237,144   1/20/16     (3,187,400 )
Japanese Yen JPHQ Sell 19,676,275,000 169,347,870   1/20/16   6,622,283    
Malaysian Ringgit JPHQ Buy 1,232,791,836 289,768,671 EUR 1/20/16     (33,664,752 )
Euro BZWS Sell 139,061,000 162,298,093   1/21/16   5,941,581    
Euro CITI Sell 42,223,091 49,243,735   1/22/16   1,768,252    
Euro DBAB Sell 87,055,000 94,785,484   1/22/16     (3,098,827 )
Euro JPHQ Sell 25,614,073 29,873,693   1/22/16   1,073,327    
Japanese Yen DBAB Sell 25,032,090,000 202,590,563   1/22/16     (4,438,851 )
Japanese Yen HSBK Sell 10,034,848,500 81,173,318   1/22/16     (1,820,503 )
Euro JPHQ Sell 76,519,000 89,575,360   1/25/16   3,532,490    
Malaysian Ringgit HSBK Buy 149,324,973 40,017,412   1/25/16     (4,629,273 )
Malaysian Ringgit HSBK Sell 149,324,973 34,905,323   1/25/16     (482,816 )
Singapore Dollar JPHQ Buy 136,940,000 99,585,485   1/25/16     (3,054,827 )
Euro BZWS Sell 94,940,000 107,792,028   1/27/16   1,031,103    
Euro DBAB Sell 57,486,735 63,396,371   1/27/16     (1,248,004 )
Euro GSCO Sell 53,052,700 58,331,178   1/27/16     (1,327,083 )
Japanese Yen GSCO Sell 15,371,620,000 131,409,446   1/27/16   4,261,447    
Japanese Yen JPHQ Sell 7,902,175,000 63,897,784   1/27/16     (1,465,902 )
Japanese Yen HSBK Sell 17,605,035,074 150,447,882   1/28/16   4,822,266    
Euro CITI Sell 81,493,700 92,847,402   1/29/16   1,203,278    
Japanese Yen DBAB Sell 13,902,366,365 118,584,448   1/29/16   3,583,717    
Malaysian Ringgit HSBK Buy 31,057,000 8,005,413   1/29/16     (644,907 )
Malaysian Ringgit HSBK Sell 31,057,000 7,258,004   1/29/16     (102,502 )
Mexican Peso CITI Buy 632,490,760 41,836,933   2/05/16     (4,428,034 )
Euro BZWS Sell 202,258,000 222,168,278   2/08/16     (5,327,727 )
Euro CITI Sell 80,318,000 92,253,255   2/09/16   1,911,255    
Euro GSCO Sell 127,740,000 146,837,130   2/09/16   3,154,680    
Japanese Yen CITI Sell 12,481,439,000 107,006,387   2/09/16   3,730,853    
Mexican Peso CITI Buy 666,525,500 44,143,685   2/09/16     (4,734,504 )
Euro HSBK Buy 73,778,000 83,795,577   2/10/16     (808,123 )
Euro HSBK Sell 73,778,000 83,792,626   2/10/16   805,172    
Malaysian Ringgit DBAB Buy 427,337,301 98,281,388 EUR 2/10/16     (9,254,614 )
Malaysian Ringgit HSBK Buy 137,320,000 34,564,172   2/10/16     (2,014,203 )
Malaysian Ringgit HSBK Sell 137,320,000 32,065,382   2/10/16     (484,586 )
Singapore Dollar DBAB Buy 139,923,000 101,012,850   2/10/16     (2,422,682 )
Euro BZWS Sell 150,959,000 171,564,904   2/11/16   1,758,791    
Malaysian Ringgit HSBK Buy 82,678,945 20,623,334   2/11/16     (1,025,078 )
Malaysian Ringgit HSBK Sell 82,678,945 19,303,980   2/11/16     (294,276 )
Mexican Peso MSCO Buy 1,198,560,000 79,061,379   2/11/16     (8,206,399 )
Euro BZWS Sell 28,000,000 30,802,380   2/12/16     (694,033 )
 
 
30 | Annual Report               franklintempleton.com  

 


 

TEMPLETON INCOME TRUST
STATEMENT OF INVESTMENTS

Templeton Global Bond Fund (continued)                  
Forward Exchange Contracts (continued)                    
        Contract   Settlement   Unrealized   Unrealized  
Currency Counterpartya Type Quantity Amount*                    Date                 Appreciation          Depreciation  
Euro GSCO Sell 171,944,000 188,920,031   2/12/16 $ $ (4,494,939 )
Japanese Yen CITI Sell 18,760,200,000 150,938,933   2/12/16     (4,300,925 )
Japanese Yen GSCO Sell 5,856,880,500 49,699,864   2/12/16   1,234,427    
Japanese Yen HSBK Sell 10,857,850,000 92,172,684   2/12/16   2,324,436    
Malaysian Ringgit HSBK Buy 62,400,000 15,553,340   2/12/16     (761,820 )
Malaysian Ringgit HSBK Sell 62,400,000 14,567,867   2/12/16     (223,654 )
Mexican Peso CITI Buy 1,155,788,000 75,586,162   2/12/16     (7,265,233 )
Mexican Peso MSCO Buy 1,244,214,000 81,614,562   2/12/16     (8,066,596 )
Singapore Dollar BZWS Buy 38,999,058 28,046,787   2/12/16     (569,439 )
Euro SCNY Sell 140,680,000 160,027,017   2/16/16   1,767,289    
Japanese Yen CITI Sell 37,564,700,000 315,964,471   2/16/16   5,086,692    
Euro GSCO Sell 74,206,000 85,257,500   2/17/16   1,776,848    
Japanese Yen GSCO Sell 20,850,739,790 176,807,569   2/17/16   4,246,739    
Mexican Peso MSCO Buy 1,131,302,320 73,854,441   2/17/16     (7,007,856 )
Malaysian Ringgit HSBK Buy 51,597,000 12,270,101   2/19/16     (38,235 )
Malaysian Ringgit HSBK Sell 51,597,000 12,039,902   2/19/16     (191,964 )
South Korean Won JPHQ Buy 523,500,000,000 55,743,081,362 JPY 2/19/16     (20,184,934 )
Euro BZWS Sell 165,746,000 189,973,093   2/22/16   3,492,512    
Euro DBAB Sell 148,587,110 164,524,563   2/22/16     (2,650,576 )
Euro JPHQ Buy 141,425,000 162,843,816   2/22/16     (3,726,757 )
Euro JPHQ Sell 141,425,000 156,710,921   2/22/16     (2,406,139 )
Malaysian Ringgit HSBK Buy 571,500,000 137,545,126   2/22/16     (2,056,871 )
Malaysian Ringgit HSBK Sell 571,500,000 133,325,557   2/22/16     (2,162,699 )
Malaysian Ringgit JPHQ Buy 177,750,000 42,754,059   2/22/16     (614,011 )
Malaysian Ringgit JPHQ Sell 177,750,000 41,423,911   2/22/16     (716,137 )
Japanese Yen DBAB Sell 4,271,575,000 34,721,759   2/24/16     (636,084 )
Japanese Yen HSBK Sell 8,572,756,000 69,671,714   2/24/16     (1,289,036 )
Malaysian Ringgit HSBK Buy 571,500,000 136,935,426   2/24/16     (1,443,601 )
Singapore Dollar DBAB Buy 84,117,000 59,687,079   2/24/16     (440,715 )
Japanese Yen BZWS Sell 9,408,100,000 79,714,799   2/25/16   1,837,540    
Japanese Yen HSBK Sell 6,688,700,000 56,700,236   2/25/16   1,333,305    
Mexican Peso CITI Buy 645,757,100 41,801,987   2/25/16     (3,669,966 )
Euro BOFA Sell 143,335,694 163,664,995   2/26/16   2,385,218    
Euro BZWS Sell 411,968,926 470,110,101   2/26/16   6,567,107    
Euro GSCO Sell 305,100,791 353,886,408   2/26/16   10,590,287    
Japanese Yen BZWS Sell 29,025,800,000 244,541,051   2/26/16   4,268,627    
Euro HSBK Sell 195,181,803 223,389,477   2/29/16   3,757,886    
Japanese Yen BZWS Sell 42,387,239,840 358,882,387   2/29/16   7,978,909    
Japanese Yen HSBK Sell 14,893,097,250 124,701,476   2/29/16   1,408,720    
Malaysian Ringgit JPHQ Buy 227,033,719 53,219,344   2/29/16   600,607    
Mexican Peso MSCO Buy 274,416,700 17,767,349   2/29/16     (1,568,431 )
Malaysian Ringgit HSBK Buy 1,546,040,875 318,246,372 EUR 3/01/16   8,353,374    
Euro DBAB Sell 88,663,500 99,932,631   3/02/16   157,679    
Japanese Yen JPHQ Sell 12,728,600,000 107,416,612   3/03/16   2,034,745    
Japanese Yen HSBK Sell 9,813,450,000 82,552,681   3/04/16   1,303,711    
Euro HSBK Buy 29,251,000 33,241,275   3/09/16     (318,876 )
Euro HSBK Sell 29,251,000 32,524,187   3/09/16     (398,212 )
Japanese Yen BZWS Sell 35,663,421,500 299,024,211   3/09/16   3,717,247    
Japanese Yen MSCO Sell 6,405,061,130 53,681,944   3/09/16   645,553    
Euro CITI Sell 109,690,000 120,362,837   3/10/16     (3,097,763 )
Euro MSCO Sell 82,877,000 90,845,624   3/10/16     (2,435,844 )
Mexican Peso CITI Buy 1,553,290,800 97,560,551   3/11/16     (5,956,503 )
Mexican Peso CITI Buy 285,979,900 17,816,397   3/14/16     (955,345 )
 
 
franklintempleton.com               Annual Report | 31  

 


 

TEMPLETON INCOME TRUST
STATEMENT OF INVESTMENTS

Templeton Global Bond Fund (continued)                  
Forward Exchange Contracts (continued)                    
        Contract   Settlement   Unrealized   Unrealized  
Currency Counterpartya Type Quantity Amount*                  Date                      Appreciation        Depreciation  
Mexican Peso JPHQ Buy 1,456,663,741 90,752,211   3/14/16 $ $ (4,868,959 )
Euro CITI Sell 6,192,249 6,634,995   3/16/16     (335,655 )
Japanese Yen CITI Sell 8,267,822,900 68,829,809   3/16/16   356,992    
Mexican Peso CITI Buy 267,082,700 16,761,811   3/18/16     (1,020,363 )
Mexican Peso JPHQ Buy 1,108,360,000 69,642,476   3/18/16     (4,317,423 )
Malaysian Ringgit HSBK Buy 116,686,000 30,654,407   3/21/16     (3,033,956 )
Malaysian Ringgit HSBK Sell 116,686,000 27,167,870   3/21/16     (452,581 )
Japanese Yen CITI Sell 25,386,870,000 211,071,785   3/22/16   790,005    
Japanese Yen MSCO Sell 12,384,230,000 102,949,690   3/22/16   369,973    
Euro BZWS Sell 4,383,502 4,709,678   3/23/16     (225,697 )
Mexican Peso CITI Buy 1,615,454,200 103,034,301   3/23/16     (7,863,038 )
Japanese Yen DBAB Sell 6,258,238,000 52,121,579   3/24/16   281,413    
Japanese Yen BZWS Sell 17,003,283,330 143,540,921   3/28/16   2,679,929    
Malaysian Ringgit HSBK Buy 145,031,000 38,380,174   3/28/16     (4,067,116 )
Malaysian Ringgit HSBK Sell 145,031,000 33,751,687   3/28/16     (561,370 )
Euro BOFA Sell 856,834,289 946,305,723   3/29/16     (18,543,386 )
Euro BOFA Sell 240,642,023 266,815,452   3/30/16     (4,169,156 )
Euro GSCO Sell 102,050,000 112,091,720   3/31/16     (2,828,582 )
Euro CITI Sell 108,189,525 120,066,787   4/08/16     (1,791,120 )
Malaysian Ringgit HSBK Buy 93,511,500 25,008,424   4/11/16     (2,906,145 )
Malaysian Ringgit HSBK Sell 93,511,500 21,739,277   4/11/16     (363,002 )
Euro DBAB Sell 113,621,500 123,032,769   4/13/16     (4,958,988 )
Euro SCNY Sell 66,994,000 71,899,636   4/13/16     (3,567,417 )
Japanese Yen CITI Sell 6,890,100,000 57,675,116   4/13/16   572,225    
Mexican Peso CITI Buy 618,239,190 39,896,180   4/13/16     (3,539,846 )
Euro JPHQ Buy 214,266,000 246,984,418   4/14/16     (5,613,279 )
Euro JPHQ Sell 214,266,000 228,968,933   4/14/16     (12,402,206 )
Euro HSBK Buy 117,406,000 133,531,714   4/18/16     (1,260,677 )
Euro HSBK Sell 117,406,000 125,096,093   4/18/16     (7,174,944 )
Japanese Yen BZWS Sell 2,679,000,000 22,623,823   4/18/16   418,358    
Malaysian Ringgit JPHQ Buy 19,310,000 5,183,753   4/27/16     (624,777 )
Malaysian Ringgit JPHQ Sell 19,310,000 4,478,200   4/27/16     (80,776 )
Euro BZWS Sell 41,793,000 45,678,286   4/29/16     (1,418,861 )
Euro SCNY Sell 236,418,000 260,367,143   4/29/16     (6,055,785 )
Euro BZWS Sell 202,926,342 228,205,384   5/05/16     (508,798 )
Euro BZWS Sell 78,607,000 88,071,283   5/09/16     (533,732 )
Malaysian Ringgit DBAB Buy 427,337,301 97,356,655 EUR 5/10/16     (8,942,099 )
Euro BZWS Sell 205,897,795 236,494,207   5/18/16   4,357,289    
Indonesian Rupiah JPHQ       Buy               1,393,097,000,000 123,468,670 AUD 5/18/16   4,122,609    
Japanese Yen CITI Sell 42,148,693,500 356,467,300   5/18/16   6,845,175    
Indonesian Rupiah JPHQ       Buy               1,823,573,000,000 162,485,343 AUD 5/19/16   4,761,884    
Japanese Yen BOFA Sell 42,084,293,750 353,845,778   5/19/16   4,749,065    
Japanese Yen BZWS Sell 42,198,117,500 354,725,265   5/19/16   4,684,364    
Japanese Yen HSBK Sell 42,232,203,900 356,736,106   5/19/16   6,412,452    
Japanese Yen JPHQ Sell 9,694,306,000 81,624,919   5/20/16   1,206,901    
Malaysian Ringgit HSBK Buy 632,620,000 172,757,312   5/20/16     (23,639,708 )
Euro BZWS Sell 251,880,551 282,490,335   5/23/16     (1,523,950 )
Euro DBAB Sell 145,693,000 163,251,920   5/23/16     (1,027,906 )
Malaysian Ringgit HSBK Buy 36,030,800 9,731,479   5/23/16     (1,240,284 )
Euro BZWS Sell 449,846,411 523,969,853   5/26/16   16,696,989    
Euro JPHQ Buy 37,226,387 42,951,805   5/26/16     (973,175 )
Euro JPHQ Sell 37,226,387 41,731,338   5/26/16     (247,292 )
Japanese Yen BZWS Sell 12,841,448,000 109,056,883   5/26/16   2,516,023    
 
 
32 | Annual Report               franklintempleton.com  

 


 

TEMPLETON INCOME TRUST
STATEMENT OF INVESTMENTS

Templeton Global Bond Fund (continued)                  
Forward Exchange Contracts (continued)                    
        Contract   Settlement   Unrealized   Unrealized  
Currency Counterpartya Type Quantity Amount*                    Date                   Appreciation       Depreciation  
Japanese Yen SCNY Sell 11,809,161,000 99,621,740   5/26/16 $ 1,645,392 $  
Mexican Peso HSBK Buy 531,511,160 34,084,338   5/26/16     (2,943,689 )
Euro BZWS Sell 50,325,351 54,886,841   5/31/16     (1,870,875 )
Malaysian Ringgit HSBK Buy 148,382,600 40,103,405   5/31/16     (5,154,748 )
Mexican Peso HSBK Buy 475,193,807 30,072,702   5/31/16     (2,244,268 )
Mexican Peso JPHQ Buy 1,552,000,000 98,430,316   5/31/16     (7,541,650 )
Euro BZWS Sell 165,594,422 184,211,375   6/06/16     (2,580,934 )
Euro DBAB Sell 196,930,000 220,721,113   6/06/16     (1,418,068 )
Euro HSBK Buy 406,025,025 462,350,847   6/06/16     (4,350,204 )
Euro HSBK Sell 406,025,025 460,286,209   6/06/16   2,285,567    
Mexican Peso CITI Buy 1,672,699,230 105,184,671   6/06/16     (7,281,649 )
Euro GSCO Sell 102,043,700 116,198,182   6/08/16   1,085,135    
Japanese Yen CITI Sell 28,538,800,000 231,654,189   6/08/16     (5,219,924 )
Mexican Peso CITI Buy 1,670,822,000 104,593,070   6/08/16     (6,817,911 )
Japanese Yen BZWS Sell 35,594,850,000 286,648,386   6/10/16     (8,810,593 )
Japanese Yen CITI Sell 12,207,090,000 98,384,767   6/10/16     (2,941,530 )
Japanese Yen HSBK Sell 37,908,340,000 305,798,734   6/10/16     (8,863,625 )
Euro GSCO Sell 104,415,800 118,924,375   6/13/16   1,118,421    
Japanese Yen DBAB Sell 12,553,300,000 101,938,350   6/13/16     (2,271,828 )
Mexican Peso CITI Buy 1,708,391,910 107,696,647   6/13/16     (7,768,880 )
Euro DBAB Sell 70,474,000 80,307,942   6/15/16   791,852    
Japanese Yen CITI Sell 4,208,470,000 34,312,562   6/16/16     (627,098 )
Australian Dollar CITI Sell 245,796,300 186,991,993   6/20/16   14,307,790    
Australian Dollar JPHQ Sell 615,570,000 467,051,426   6/20/16   34,582,691    
Euro BZWS Sell 19,959,932 22,921,487   6/22/16   396,066    
Japanese Yen DBAB Sell 24,749,910,000 202,536,088   6/22/16     (2,983,153 )
Mexican Peso CITI Buy 1,314,260,000 83,940,729   6/22/16     (7,130,195 )
Indonesian Rupiah JPHQ       Buy               4,758,980,000,000 432,634,545 AUD 6/23/16   4,099,728    
Malaysian Ringgit HSBK Buy 167,392,229 43,934,968   6/23/16     (4,574,586 )
Indonesian Rupiah JPHQ       Buy               2,084,500,000,000 189,897,057 AUD 6/24/16   1,489,078    
Japanese Yen BZWS Sell 11,637,164,000 94,910,095   6/30/16     (1,748,086 )
Mexican Peso CITI Buy 3,482,973,187 215,031,529   7/08/16     (11,771,572 )
Euro JPHQ Sell 117,193,824 130,563,295   7/11/16     (1,766,265 )
Mexican Peso CITI Buy 922,449,101 56,664,973   7/11/16     (2,847,336 )
Euro MSCO Sell 100,845,000 111,332,880   7/18/16     (2,559,413 )
Euro MSCO Sell 94,240,000 103,018,456   7/22/16     (3,426,586 )
Euro DBAB Sell 89,314,817 98,491,021   7/25/16     (2,399,722 )
Japanese Yen CITI Sell 14,729,205,625 119,751,586   7/25/16     (2,688,277 )
Euro BZWS Sell 69,060,000 76,276,079   7/28/16     (1,741,422 )
Euro CITI Sell 97,037,945 107,152,695   7/28/16     (2,471,660 )
Euro GSCO Sell 236,417,000 260,678,113   7/28/16     (6,403,607 )
Euro BZWS Sell 8,238,187 9,180,636   7/29/16     (126,363 )
Euro DBAB Buy 2,245,099 2,602,198   7/29/16     (65,822 )
Euro DBAB Sell 2,245,099 2,512,491   7/29/16     (23,885 )
Euro JPHQ Sell 236,418,000 263,674,631   7/29/16     (3,415,938 )
Japanese Yen BZWS Sell 13,069,570,000 106,998,260   7/29/16     (1,659,604 )
Malaysian Ringgit JPHQ Buy 6,585,000 1,672,169   7/29/16     (127,804 )
Malaysian Ringgit JPHQ Sell 6,585,000 1,516,757   7/29/16     (27,608 )
Mexican Peso CITI Buy 1,772,466,150 106,208,199   7/29/16     (2,969,160 )
Euro BZWS Sell 21,388,935 23,610,818   8/05/16     (557,980 )
Euro DBAB Sell 72,100,000 80,292,723   8/05/16     (1,177,921 )
Euro HSBK Buy 236,418,000 274,717,716   8/05/16     (7,573,102 )
Euro HSBK Sell 236,418,000 260,981,830   8/05/16     (6,162,784 )
 
 
franklintempleton.com               Annual Report | 33  

 


 

TEMPLETON INCOME TRUST                    
STATEMENT OF INVESTMENTS                    
 
 
 
 
Templeton Global Bond Fund (continued)                  
Forward Exchange Contracts (continued)                    
        Contract   Settlement     Unrealized Unrealized  
Currency Counterpartya Type Quantity Amount*                  Date                                 Appreciation     Depreciation  
Euro MSCO Sell 8,856,901 9,774,653   8/05/16   $ — $ (233,356 )
Mexican Peso CITI Buy 2,260,406,280 136,374,436   8/05/16     (4,799,157 )
Japanese Yen MSCO Sell 1,969,700,000 15,906,806   8/08/16     (474,211 )
Malaysian Ringgit HSBK Buy 518,518,000 129,338,488   8/08/16     (7,819,408 )
Malaysian Ringgit JPHQ Buy 13,600,000 3,397,452   8/08/16     (210,177 )
Malaysian Ringgit JPHQ Sell 13,600,000 3,130,035   8/08/16     (57,241 )
Mexican Peso CITI Buy 2,526,643,000 150,444,202   8/08/16     (3,411,987 )
Euro CITI Sell 188,712,223 207,272,070   8/10/16     (5,997,400 )
Japanese Yen CITI Sell 8,636,095,000 69,909,215   8/10/16     (1,917,563 )
Malaysian Ringgit DBAB Buy 427,337,301 96,375,206 EUR 8/10/16     (8,780,909 )
Mexican Peso MSCO Buy 1,342,789,000 79,728,595   8/10/16     (1,602,349 )
South Korean Won HSBK Buy 184,000,000,000 19,360,065,655 JPY 8/10/16     (6,082,230 )
Euro DBAB Sell 226,679,000 250,241,149   8/11/16     (5,943,147 )
Euro JPHQ Sell 295,609,000 325,317,705   8/11/16     (8,768,750 )
South Korean Won HSBK Buy 184,161,000,000 19,404,159,817 JPY 8/12/16     (6,325,175 )
Euro MSCO Sell 144,241,714 162,858,271   8/15/16     (177,281 )
Singapore Dollar DBAB Buy 54,530,000 38,767,240   8/15/16     (503,855 )
Euro MSCO Sell 144,241,718 161,722,372   8/17/16     (1,322,614 )
Mexican Peso DBAB Buy 1,413,199,480 83,762,031   8/17/16     (1,591,754 )
Mexican Peso MSCO Buy 123,499,000 7,341,517   8/17/16     (160,686 )
Singapore Dollar BZWS Buy 112,084,000 79,678,681   8/17/16     (1,035,813 )
Singapore Dollar DBAB Buy 95,420,000 68,040,502   8/17/16     (1,089,800 )
Singapore Dollar HSBK Buy 84,114,500 59,804,124   8/17/16     (785,838 )
Euro BZWS Sell 186,465,000 208,742,906   8/18/16     (2,035,660 )
Euro JPHQ Sell 142,058,430 159,072,768   8/18/16     (1,508,962 )
Japanese Yen DBAB Sell 9,637,940,000 78,285,951   8/18/16     (1,894,034 )
Euro JPHQ Sell 207,184,000 230,775,006   8/22/16     (3,451,248 )
Japanese Yen HSBK Sell 19,192,069,750 155,754,502   8/22/16     (3,928,968 )
Japanese Yen JPHQ Sell 4,331,618,000 35,148,824   8/22/16     (891,469 )
Mexican Peso HSBK Buy 1,789,454,960 105,666,074   8/22/16     (1,665,998 )
Japanese Yen BZWS Sell 4,322,430,000 35,262,115   8/24/16     (704,067 )
Mexican Peso DBAB Buy 1,242,200,000 72,101,460   8/24/16     79,904  
Euro DBAB Sell 149,427,000 171,093,915   8/25/16     2,148,614  
Euro JPHQ Sell 204,801,000 234,486,905   8/25/16     2,934,597  
Euro SCNY Sell 211,027,544 245,817,544   8/26/16     7,218,473  
Japanese Yen JPHQ Sell 8,617,736,000 73,148,823   8/26/16     1,437,500  
Euro JPHQ Sell 69,055,954 79,428,158   8/29/16     1,343,014  
Japanese Yen DBAB Sell 8,644,374,000 72,672,333   8/29/16     732,337  
Japanese Yen JPHQ Sell 10,357,462,000 87,038,593   8/29/16     841,978  
Mexican Peso CITI Buy 1,412,593,600 80,215,423   8/29/16     1,829,653  
Mexican Peso HSBK Buy 545,438,860 31,147,822   8/29/16     531,901  
Euro DBAB Sell 60,147,806 68,027,169   8/31/16     10,994  
Japanese Yen JPHQ Sell 6,909,339,000 57,818,011   8/31/16     313,546  
Philippine Peso JPHQ Buy 2,519,000,000 52,761,661   8/31/16     (148,698 )
Totals Forward Exchange Contracts unrealized appreciation (depreciation)     $                1,933,437,301        $(1,648,786,086)
Net unrealized appreciation (depreciation)             $ 284,651,215    

 

aMay be comprised of multiple contracts with the same counterparty, currency and settlement date.

*In U.S. dollars unless otherwise indicated.

34 | Annual Report

franklintempleton.com


 

TEMPLETON INCOME TRUST
STATEMENT OF INVESTMENTS

Templeton Global Bond Fund (continued)

At August 31, 2015, 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 $ 3,657,620,000 10/17/17 $ $ (10,092,743 )
Receive Floating rate 3-month USD BBA LIBOR                  
Pay Fixed rate 1.914% LCH   2,081,160,000 1/22/25   53,399,774    
Receive Floating rate 3-month USD BBA LIBOR                  
Pay Fixed rate 1.970% LCH   2,601,430,000 1/23/25   54,246,724    
Receive Floating rate 3-month USD BBA LIBOR                  
Pay Fixed rate 1.973% LCH   1,535,390,000 1/27/25   31,978,641    
Receive Floating rate 3-month USD BBA LIBOR                  
Pay Fixed rate 1.937% LCH   383,800,000 1/29/25   9,255,848    
Receive Floating rate 3-month USD BBA LIBOR                  
Pay Fixed rate 1.942% LCH   325,000,000 1/30/25   7,720,085    
Receive Floating rate 3-month USD BBA LIBOR                  
Pay Fixed rate 1.817% LCH   514,670,000 2/03/25   18,064,726    
Receive Floating rate 3-month USD BBA LIBOR                  
Pay Fixed rate 1.978% LCH   39,700,000 3/27/25   614,431    
Receive Floating rate 3-month USD BBA LIBOR                  
Pay Fixed rate 1.985% LCH   39,700,000 3/27/25   587,530    
Receive Floating rate 3-month USD BBA LIBOR                  
Pay Fixed rate 2.450% LCH   893,410,000 7/22/25     (16,921,385 )
Receive Floating rate 3-month USD BBA LIBOR                  
Pay Fixed rate 2.439% LCH   101,430,000 7/23/25     (1,800,213 )
Receive Floating rate 3-month USD BBA LIBOR                  
Pay Fixed rate 2.400% CME   798,605,000 7/24/25     (11,285,334 )
Receive Floating rate 3-month USD BBA LIBOR                  
Pay Fixed rate 2.890% LCH   385,470,000 7/22/45     (14,003,590 )
Receive Floating rate 3-month USD BBA LIBOR                  
Pay Fixed rate 2.861% LCH   54,025,000 7/24/45     (1,621,870 )
Receive Floating rate 3-month USD BBA LIBOR                  
Pay Fixed rate 2.574% LCH   1,057,400,000 8/24/45   35,846,713    
Totals Interest Rate Swap Contracts         $ 211,714,472 $ (55,725,135 )
Net unrealized appreciation (depreciation)         $ 155,989,337      

 

See Abbreviations on page 50.      
franklintempleton.com The accompanying notes are an integral part of these financial statements. | Annual Report | 35

 


 

TEMPLETON INCOME TRUST      
 
 
 
Financial Statements      
 
Statement of Assets and Liabilities      
August 31, 2015      
 
Templeton Global Bond Fund      
 
Assets:      
Investments in securities:      
Cost - Unaffiliated issuers $ 52,897,788,045  
Cost - Sweep Money Fund (Note 3f)   9,570,839,633  
Total cost of investments $ 62,468,627,678  
Value - Unaffiliated issuers $ 47,721,216,313  
Value - Sweep Money Fund (Note 3f)   9,570,839,633  
Total value of investments   57,292,055,946  
Cash   197,210,000  
Restricted cash (Note 1d)   483,070,000  
Foreign currency, at value (cost $1,205,355,194)   1,202,487,276  
Receivables:      
Capital shares sold   98,897,553  
Interest   696,268,922  
Due from brokers   1,450,791,356  
Variation margin   16,300,258  
Unrealized appreciation on OTC forward exchange contracts   1,933,437,301  
Other assets   21,084  
      Total assets   63,370,539,696  
Liabilities:      
Payables:      
Capital shares redeemed   222,595,731  
Management fees   24,169,500  
Distribution fees   7,844,002  
Transfer agent fees   17,317,327  
Due to brokers   483,070,000  
Unrealized depreciation on OTC forward exchange contracts   1,648,786,086  
Deferred tax   22,691,468  
Accrued expenses and other liabilities   11,124,713  
         Total liabilities   2,437,598,827  
           Net assets, at value $ 60,932,940,869  
Net assets consist of:      
Paid-in capital $ 67,673,307,771  
Distributions in excess of net investment income   (1,682,787,996 )
Net unrealized appreciation (depreciation)   (4,783,240,411 )
Accumulated net realized gain (loss)   (274,338,495 )
          Net assets, at value $ 60,932,940,869  

 

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

franklintempleton.com


 

TEMPLETON INCOME TRUST
FINANCIAL STATEMENTS

Statement of Assets and Liabilities (continued)
August 31, 2015

Templeton Global Bond Fund    
 
Class A:    
Net assets, at value $ 19,063,125,764
Shares outstanding   1,634,478,615
Net asset value per sharea $ 11.66
Maximum offering price per share (net asset value per share ÷ 95.75%) $ 12.18
Class C:    
Net assets, at value $ 6,171,509,145
Shares outstanding   527,924,761
Net asset value and maximum offering price per sharea $ 11.69
Class R:    
Net assets, at value $ 358,318,324
Shares outstanding   30,724,348
Net asset value and maximum offering price per share $ 11.66
Class R6:    
Net assets, at value $ 2,805,619,709
Shares outstanding   241,438,310
Net asset value and maximum offering price per share $ 11.62
Advisor Class:    
Net assets, at value $ 32,534,367,927
Shares outstanding   2,799,706,296
Net asset value and maximum offering price per share $ 11.62

 

aRedemption price is equal to net asset value less contingent deferred sales charges, if applicable.    
franklintempleton.com The accompanying notes are an integral part of these financial statements. | Annual Report | 37

 


 

TEMPLETON INCOME TRUST      
FINANCIAL STATEMENTS      
 
 
Statement of Operations      
for the year ended August 31, 2015      
 
Templeton Global Bond Fund      
 
Investment income:      
Interest (net of foreign taxes of $61,271,497) $ 2,271,924,068  
Inflation principal adjustments   181,669,213  
Total investment income   2,453,593,281  
Expenses:      
Management fees (Note 3a)   326,110,995  
Distribution fees: (Note 3c)      
Class A   54,276,961  
Class C   47,890,826  
Class R   1,882,684  
Transfer agent fees: (Note 3e)      
Class A   27,974,704  
Class C   9,511,368  
Class R   484,618  
Class R6