Form N-CSRS - Certified Shareholder Report, Semi-Annual
29 August 2023 - 02:30PM
Edgar (US Regulatory)
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, DC 20549
CERTIFIED SHAREHOLDER REPORT OF REGISTERED MANAGEMENT
INVESTMENT COMPANIES
Investment Company Act file number 811-07866
Templeton Emerging Markets Income Fund
(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)
Alison Baur, 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: 12/31
Date of reporting period: 6/30/23
Item 1. Reports to
Stockholders.
The
following is a copy of the report transmitted to shareholders pursuant to Rule30e-1
under the Investment Company Act of 1940, as amended (the “1940 Act”) (17 CFR
270.30e-1.)
Include a
copy of each notice transmitted to stockholders in reliance on Rule 30e-3 under
the Act (17 CFR 270.30e-3) that contains disclosures specified by paragraph
(c)(3) of that rule.
Templeton
Emerging
Markets
Income
Fund
June
30,
2023
Not
FDIC
Insured
May
Lose
Value
No
Bank
Guarantee
Managed
Distribution
Policy
:
The
Fund’s
Board
of
Trustees
(the
“Board”)
has
authorized
a
managed
distribution
plan
pursuant
to
which
the
Fund
makes
monthly
distributions
to
shareholders
at
an
annual
minimum
fixed
rate
of
10%,
based
on
the
average
monthly
net
asset
value
(NAV)
of
the
Fund’s
common
shares
(the
“Plan”).
The
Fund
calculates
the
average
NAV
from
the
previous
month
based
on
the
number
of
business
days
in
the
month
on
which
the
NAV
is
calculated.
The
Plan
is
intended
to
provide
shareholders
with
a
constant,
but
not
guaranteed,
fixed
minimum
rate
of
distribution
each
month
and
is
intended
to
narrow
the
discount
between
the
market
price
and
the
NAV
of
the
Fund’s
common
shares,
but
there
can
be
no
assurance
that
the
Plan
will
be
successful
in
doing
so.
The
Fund
is
managed
with
a
goal
of
generating
as
much
of
the
distribution
as
possible
from
net
ordinary
income
and
short-term
capital
gains,
that
is
consistent
with
the
Fund’s
investment
strategy
and
risk
profile.
To
the
extent
that
sufficient
distributable
income
is
not
available
on
a
monthly
basis,
the
Fund
will
distribute
long-term
capital
gains
and/or
return
of
capital
in
order
to
maintain
its
managed
distribution
rate.
A
return
of
capital
may
occur,
for
example,
when
some
or
all
of
the
money
that
was
invested
in
the
Fund
is
paid
back
to
shareholders.
A
return
of
capital
distribution
does
not
necessarily
reflect
the
Fund’s
investment
performance
and
should
not
be
confused
with
“yield”
or
“income”.
Even
though
the
Fund
may
realize
current
year
capital
gains,
such
gains
may
be
offset,
in
whole
or
in
part,
by
the
Fund’s
capital
loss
carryovers
from
prior
years.
The
Board
may
amend
the
terms
of
the
Plan
or
terminate
the
Plan
at
any
time
without
prior
notice
to
the
Fund’s
shareholders,
however,
at
this
time
there
are
no
reasonably
foreseeable
circumstances
that
might
cause
the
termination
of
the
Plan.
The
amendment
or
termination
of
the
Plan
could
have
an
adverse
effect
on
the
market
price
of
the
Fund’s
common
shares.
The
Plan
will
be
subject
to
the
periodic
review
by
the
Board,
including
a
yearly
review
of
the
annual
minimum
fixed
rate
to
determine
if
an
adjustment
should
be
made.
Shareholders
should
not
draw
any
conclusions
about
the
Fund’s
investment
performance
from
the
amount
of
this
distribution
or
from
the
terms
of
the
Plan.
The
Fund
will
send
a
Form
1099-DIV
to
shareholders
for
the
calendar
year
that
will
describe
how
to
report
the
Fund’s
distributions
for
federal
income
tax
purposes.
Contents
Fund
Overview
2
Performance
Summary
4
Financial
Highlights
and
Schedule
of
Investments
6
Financial
Statements
14
Notes
to
Financial
Statements
18
Important
Information
to
Shareholders
31
Annual
Meeting
of
Shareholders
33
Dividend
Reinvestment
and
Cash
Purchase
Plan
34
Shareholder
Information
36
Visit
franklintempleton.com
for
fund
updates,
to
access
your
account,
or
to
find
helpful
financial
planning
tools.
Templeton
Emerging
Markets
Income
Fund
Dear
Shareholder,
This
semiannual
report
for
Templeton
Emerging
Markets
Income
Fund
covers
the
period
ended
June
30,
2023
.
Fund
Overview
Your
Fund’s
Goal
and
Main
Investments
The
Fund
seeks
high,
current
income,
with
a
secondary
goal
of
capital
appreciation,
by
investing,
under
normal
market
conditions,
at
least
80%
of
its
net
assets
in
income-
producing
securities
of
sovereign
or
sovereign-related
entities
and
private
sector
companies
in
emerging
market
countries.
For
purposes
of
the
Fund’s
80%
policy,
income-
producing
securities
of
entities
in
emerging
markets
include
derivative
instruments
or
other
investments
that
have
economic
characteristics
similar
to
such
securities.
Performance
Overview
For
the
six
months
under
review,
the
Fund
posted
cumulative
total
returns
of
-0.93%
based
on
market
price
and
+5.32%
based
on
net
asset
value.
In
comparison,
U.S.
dollar-
denominated
emerging
market
bonds,
as
measured
by
the
J.P.
Morgan
(JPM)
Emerging
Markets
Bond
Index
(EMBI)
Global
Index,
posted
a
+3.81%
cumulative
total
return
in
U.S.
dollar
terms
for
the
same
period.
1
You
can
find
the
Fund’s
long-term
performance
data
in
the
Performance
Summary
on
page
4
.
The
Fund
has
a
managed
distribution
plan
pursuant
to
which
the
Fund
makes
monthly
distributions
to
shareholders
at
an
annual
minimum
fixed
rate
of
10%,
based
on
the
average
monthly
net
asset
value
of
the
Fund’s
common
shares
(the
“Plan”).
The
Plan
has
no
impact
on
the
Fund’s
investment
strategy
and
may
reduce
the
Fund’s
net
asset
value.
The
Fund’s
investment
manager
believes
the
Plan
helps
maintain
the
Fund’s
competitiveness
and
may
benefit
the
Fund’s
market
price
and
premium/discount
to
the
Fund’s
net
asset
value.
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.
Thank
you
for
your
continued
participation
in
Templeton
Emerging
Markets
Income
Fund.
We
look
forward
to
serving
your
future
investment
needs.
Portfolio
Composition
6/30/23
%
of
Total
Net
Assets
Foreign
Government
and
Agency
Securities
102.8%
Corporate
Bonds
4.1%
Common
Stocks
1.5%
Other
†
0.0%
Short-Term
Investments
&
Other
Net
Assets
*
-8.4%
†
Categories
within
the
Other
category
are
listed
in
full
in
the
Fund’s
Schedule
of
Investments
(SOI),
which
can
be
found
later
in
this
report.
*Includes
U.S.
government
and
agency
securities,
money
market
funds
and
other
net
assets
(including
derivatives).
Geographic
Composition
6/30/23
%
of
Total
Net
Assets
Americas
38.1%
Asia
Pacific
33.9%
Middle
East
&
Africa
27.7%
Other
Europe
8.7%
Short-Term
Investments
&
Other
Net
Assets
-8.4%
Top
10
Countries*
6/30/23
a
%
of
Total
Net
Assets
a
a
Malaysia
11.1%
Egypt
7.8%
Ecuador
6.5%
Hungary
6.2%
Indonesia
5.9%
Brazil
5.9%
Oman
5.7%
Colombia
5.6%
Dominican
Republic
5.4%
India
5.3%
*
Does
not
include
cash
and
cash
equivalents.
1.
Source:
Morningstar.
The
index
is
unmanaged
and
includes
reinvestment
of
any
income
or
distributions.
It
does
not
reflect
any
fees,
expenses
or
sales
charges.
One
cannot
invest
directly
in
an
index,
and
an
index
is
not
representative
of
the
Fund’s
portfolio.
See
www.franklintempletondatasources.com
for
additional
data
provider
information.
The
dollar
value,
number
of
shares
or
principal
amount,
and
names
of
all
portfolio
holdings
are
listed
in
the
Fund’s
Schedule
of
Investments
(SOI).
The
SOI
begins
on
page
7
.
Templeton
Emerging
Markets
Income
Fund
Sincerely,
Michael
Hasenstab,
Ph.D.
Lead
Portfolio
Manager
Calvin
Ho,
Ph.D.
Portfolio
Manager
Performance
Summary
as
of
June
30,
2023
Templeton
Emerging
Markets
Income
Fund
Total
return
reflects
reinvestment
of
the
Fund’s
dividends
and
capital
gain
distributions,
if
any,
and
any
unrealized
gains
or
losses.
Total
returns
do
not
reflect
any
sales
charges
paid
at
inception
or
brokerage
commissions
paid
on
secondary
market
purchases.
The
performance
tables
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.
Your
dividend
income
will
vary
depending
on
dividends
or
interest
paid
by
securities
in
the
Fund’s
portfolio,
adjusted
for
operating
expenses.
Capital
gain
distributions
are
net
profits
realized
from
the
sale
of
portfolio
securities.
Performance
as
of
6/30/23
1
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.
Share
Prices
Cumulative
Total
Return
2
Average
Annual
Total
Return
2
Based
on
NAV
3
Based
on
market
price
4
Based
on
NAV
3
Based
on
market
price
4
6-Month
+5.32%
-0.93%
+5.32%
-0.93%
1-Year
+8.37%
+6.72%
+8.37%
+6.72%
5-Year
-22.77%
-20.33%
-5.04%
-4.44%
10-Year
-14.41%
-17.23%
-1.54%
-1.87%
Symbol:
TEI
6/30/23
12/31/22
Change
Net
Asset
Value
(NAV)
$5.73
$5.72
+$0.01
Market
Price
(NYSE)
$5.15
$5.49
-$0.34
Distributions
(1/1/23–6/30/23)
Net
Investment
Income
$0.2855
See
page
5
for
Performance
Summary
footnotes.
Templeton
Emerging
Markets
Income
Fund
Performance
Summary
Events
such
as
the
spread
of
deadly
diseases,
disasters,
and
financial,
political
or
social
disruptions,
may
heighten
risks
and
adversely
affect
performance.
The
Fund
is
actively
managed
but
there
is
no
guarantee
that
the
manager’s
investment
decisions
will
produce
the
desired
results.
All
investments
involve
risks,
including
possible
loss
of
principal.
Fixed
income
securities
involve
interest
rate,
credit,
inflation
and
reinvestment
risks,
and
possible
loss
of
principal.
As
interest
rates
rise,
the
value
of
fixed
income
securities
falls.
International
investments
are
subject
to
special
risks,
including
currency
fluctuations
and
social,
economic
and
political
uncertainties,
which
could
increase
volatility.
These
risks
are
magnified
in
emerging
markets.
Liquidity
risk
exists
when
securities
or
other
investments
become
more
difficult
to
sell,
or
are
unable
to
be
sold,
at
the
price
at
which
they
have
been
valued.
Derivative
instruments
can
be
illiquid,
may
disproportionately
increase
losses,
and
have
a
potentially
large
impact
on
performance.
The
manager
may
consider
environmental,
social
and
governance
(ESG)
criteria
in
the
research
or
investment
process;
however,
ESG
considerations
may
not
be
a
determinative
factor
in
security
selection.
In
addition,
the
manager
may
not
assess
every
investment
for
ESG
criteria,
and
not
every
ESG
factor
may
be
identified
or
evaluated.
The
Fund
may
invest
in
China
Interbank
bonds
traded
on
the
China
Interbank
Bond
Market
(“CIBM”)
through
the
China
–
Hong
Kong
Bond
Connect
program
(“Bond
Connect”).
In
China,
the
Hong
Kong
Monetary
Authority
Central
Money
Markets
Unit
holds
Bond
Connect
securities
on
behalf
of
ultimate
investors
(such
as
the
Fund)
in
accounts
maintained
with
a
China-
based
custodian
(either
the
China
Central
Depository
&
Clearing
Co.
or
the
Shanghai
Clearing
House).
This
recordkeeping
system
subjects
the
Fund
to
various
risks,
including
the
risk
that
the
Fund
may
have
a
limited
ability
to
enforce
rights
as
a
bondholder
and
the
risks
of
settlement
delays
and
counterparty
default
of
the
Hong
Kong
sub-custodian.
In
addition,
enforcing
the
ownership
rights
of
a
beneficial
holder
of
Bond
Connect
securities
is
untested
and
courts
in
China
have
limited
experience
in
applying
the
concept
of
beneficial
ownership.
Bond
Connect
uses
the
trading
infrastructure
of
both
Hong
Kong
and
China
and
is
not
available
on
trading
holidays
in
Hong
Kong.
As
a
result,
prices
of
securities
purchased
through
Bond
Connect
may
fluctuate
at
times
when
a
Fund
is
unable
to
add
to
or
exit
its
position.
Securities
offered
through
Bond
Connect
may
lose
their
eligibility
for
trading
through
the
program
at
any
time.
If
Bond
Connect
securities
lose
their
eligibility
for
trading
through
the
program,
they
may
be
sold
but
can
no
longer
be
purchased
through
Bond
Connect.
Bond
Connect
is
subject
to
regulation
by
both
Hong
Kong
and
China
and
there
can
be
no
assurance
that
further
regulations
will
not
affect
the
availability
of
securities
in
the
program,
the
frequency
of
redemptions
or
other
limitations.
Bond
Connect
trades
are
settled
in
Chinese
currency,
the
renminbi
(“RMB”).
It
cannot
be
guaranteed
that
investors
will
have
timely
access
to
a
reliable
supply
of
RMB
in
Hong
Kong.
Bond
Connect
is
relatively
new
and
its
effects
on
the
Chinese
interbank
bond
market
are
uncertain.
In
addition,
the
trading,
settlement
and
IT
systems
required
for
non-Chinese
investors
in
Bond
Connect
are
relatively
new.
In
the
event
of
systems
malfunctions,
trading
via
Bond
Connect
could
be
disrupted.
In
addition,
the
Bond
Connect
program
may
be
subject
to
further
interpretation
and
guidance.
There
can
be
no
assurance
as
to
the
program’s
continued
existence
or
whether
future
developments
regarding
the
program
may
restrict
or
adversely
affect
the
Fund’s
investments
or
returns.
Finally,
uncertainties
in
China
tax
rules
governing
taxation
of
income
and
gains
from
investments
via
Bond
Connect
could
result
in
unexpected
tax
liabilities
for
a
Fund.
The
application
and
interpretation
of
the
laws
and
regulations
of
Hong
Kong
and
China,
and
the
rules,
policies
or
guidelines
published
or
applied
by
relevant
regulators
and
exchanges
in
respect
of
the
Bond
Connect
program,
are
uncertain,
and
may
have
a
detrimental
effect
on
the
Fund’s
investments
and
returns.
1.
Gross
expenses
are
the
Fund’s
total
annual
operating
expenses
as
of
the
Fund's
annual
report
available
at
the
time
of
publication.
Actual
expenses
may
be
higher
and
may
impact
portfolio
returns.
Net
expenses
reflect
voluntary
fee
waivers,
expense
caps
and/or
reimbursements.
Voluntary
waivers
may
be
modified
or
discontinued
at
any
time
without
notice.
2.
Total
return
calculations
represent
the
cumulative
and
average
annual
changes
in
value
of
an
investment
over
the
periods
indicated.
Return
for
less
than
one
year,
if
any,
has
not
been
annualized.
3.
Assumes
reinvestment
of
distributions
based
on
net
asset
value.
4.
Assumes
reinvestment
of
distributions
based
on
the
dividend
reinvestment
and
cash
purchase
plan.
See
www.franklintempletondatasources.com
for
additional
data
provider
information.
Templeton
Emerging
Markets
Income
Fund
Semiannual
Report
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
a
Six
Months
Ended
June
30,
2023
(unaudited)
Year
Ended
December
31,
2022
2021
2020
2019
2018
Per
share
operating
performance
(for
a
share
outstanding
throughout
the
period)
Net
asset
value,
beginning
of
period
.....
$5.72
$7.58
$8.92
$9.95
$10.93
$12.75
Income
from
investment
operations:
Net
investment
income
a
.............
0.21
0.45
0.55
0.38
0.66
0.83
Net
realized
and
unrealized
gains
(losses)
0.09
(1.67)
(1.13)
(0.84)
(0.86)
(1.76)
Total
from
investment
operations
........
0.30
(1.22)
(0.58)
(0.46)
(0.20)
(0.93)
Less
distributions
from:
Net
investment
income
and
net
foreign
currency
gains
....................
(0.29)
—
—
(0.37)
(0.78)
(0.65)
Tax
return
of
capital
................
—
(0.65)
(0.76)
(0.20)
—
(0.24)
Total
distributions
...................
(0.29)
(0.65)
(0.76)
(0.57)
(0.78)
(0.89)
Repurchase
of
shares
..............
—
b
0.01
—
—
—
—
Net
asset
value,
end
of
period
..........
$5.73
$5.72
$7.58
$8.92
$9.95
$10.93
Market
value,
end
of
period
c
...........
$5.15
$5.49
$7.29
$7.77
$9.19
$9.62
Total
return
(based
on
net
asset
value
per
share)
d
...........................
5.32%
(16.19)%
(6.78)%
(6.14)%
(0.33)%
(7.48)%
Total
return
(based
on
market
value
per
share)
d
...........................
(0.93)%
(15.55)%
3.59%
(9.08)%
3.48%
(6.26)%
Ratios
to
average
net
assets
e
Expenses
before
waiver
and
payments
by
affiliates
..........................
2.19%
1.40%
1.23%
1.17%
1.17%
1.17%
Expenses
net
of
waiver
and
payments
by
affiliates
..........................
2.17%
1.38%
1.22%
1.14%
1.06%
1.14%
f
Net
investment
income
...............
7.30%
7.11%
6.68%
4.22%
6.20%
7.00%
Supplemental
data
Net
assets,
end
of
period
(000’s)
........
$271,625
$272,330
$363,759
$428,098
$477,471
$524,451
Portfolio
turnover
rate
................
33.12%
35.83%
70.97%
56.68%
27.69%
13.69%
Total
credit
facility
and
reverse
repurchase
agreements
outstanding
at
end
of
period
(000’s)
...........................
$50,000
$36,000
$36,000
$—
$—
$—
Asset
coverage
per
$1,000
of
debt
......
$6,433
$8,565
$11,133
$—
$—
$—
a
Based
on
average
daily
shares
outstanding.
b
Amount
rounds
to
less
than
$0.01
per
share
c
Based
on
the
last
sale
on
the
New
York
Stock
Exchange.
d
The
Market
Value
Total
Return
is
calculated
assuming
a
purchase
of
common
shares
on
the
opening
of
the
first
business
day
and
a
sale
on
the
closing
of
the
last
business
day
of
each
period.
Dividends
and
distributions
are
assumed
for
the
purposes
of
this
calculation
to
be
reinvested
at
prices
obtained
under
the
Fund's
Dividend
Reinvestment
and
Cash
Purchase
Plan.
Net
Asset
Value
Total
Return
is
calculated
on
the
same
basis,
except
that
the
Fund's
net
asset
value
is
used
on
the
purchase,
sale
and
dividend
reinvestment
dates
instead
of
market
value.
Total
return
does
not
reflect
brokerage
commissions
or
sales
charges
in
connection
with
the
purchase
or
sale
of
Fund
shares.
Total
return
is
not
annualized
for
periods
less
than
one
year.
e
Ratios
are
annualized
for
periods
less
than
one
year.
f
Benefit
of
expense
reduction
rounds
to
less
than
0.01%.
Templeton
Emerging
Markets
Income
Fund
Schedule
of
Investments
(unaudited),
June
30,
2023
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
Semiannual
Report
a
a
Industry
Shares
a
Value
a
Common
Stocks
1.5%
South
Africa
1.5%
a,b,c
K2016470219
South
Africa
Ltd.,
A
....
Broadline
Retail
93,760,463
$
—
a,b,c
K2016470219
South
Africa
Ltd.,
B
....
Broadline
Retail
161,018,517
—
b
Platinum
Group
Metals
Ltd.,
(CAD
Traded)
......................
Metals
&
Mining
2,359,882
3,349,119
b
Platinum
Group
Metals
Ltd.,
(USD
Traded)
......................
Metals
&
Mining
469,750
667,045
b,d
Platinum
Group
Metals
Ltd.,
(USD
Traded),
144A
.................
Metals
&
Mining
48,837
69,309
4,085,473
Total
Common
Stocks
(Cost
$5,513,828)
.......................................
4,085,473
Principal
Amount
*
a
a
a
a
a
Convertible
Bonds
0.0%
†
Bermuda
0.0%
†
d,e,f,g
Digicel
Group
Holdings
Ltd.
,
Sub.
Bond
,
144A,
PIK,
7
%
,
Perpetual
.........
Wireless
Telecommunication
Services
611,735
60,247
Total
Convertible
Bonds
(Cost
$168,937)
.......................................
60,247
Corporate
Bonds
4.1%
Bermuda
0.1%
d,e,f
Digicel
Group
Holdings
Ltd.
,
Senior
Note
,
144A,
PIK,
8
%
,
4/01/25
......
Wireless
Telecommunication
Services
375,659
160,563
Costa
Rica
4.0%
a,c
Reventazon
Finance
Trust
,
Senior
Secured
Bond
,
144A,
8
%
,
11/15/33
.
Financial
Services
11,149,920
10,834,585
South
Africa
0.0%
a,d,e
K2016470219
South
Africa
Ltd.
,
Senior
Secured
Note,
144A,
PIK,
3%,
12/31/22
.....................
Broadline
Retail
8,125,247
—
Senior
Secured
Note,
144A,
PIK,
8%,
12/31/22
.....................
Broadline
Retail
2,886,099
EUR
—
a,d,e
K2016470260
South
Africa
Ltd.
,
Senior
Secured
Note
,
144A,
PIK,
25
%
,
12/31/22
.....................
Broadline
Retail
61,769,102
—
—
Total
Corporate
Bonds
(Cost
$45,936,482)
......................................
10,995,148
a
a
Industry
Principal
Amount
*
a
Value
Foreign
Government
and
Agency
Securities
102.8%
Argentina
2.0%
Argentina
Government
Bond
,
Senior
Bond,
1.5%,
7/09/35
.......
16,852,222
5,069,266
Senior
Note,
0.5%,
7/09/30
.......
967,775
323,785
5,393,051
Brazil
5.9%
Brazil
Notas
do
Tesouro
Nacional
,
10%,
1/01/31
..................
62,380,000
BRL
12,685,704
Templeton
Emerging
Markets
Income
Fund
Schedule
of
Investments
(unaudited)
Semiannual
Report
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
a
a
Industry
Principal
Amount
*
a
Value
a
a
a
a
a
a
Foreign
Government
and
Agency
Securities
(continued)
Brazil
(continued)
Brazil
Notas
do
Tesouro
Nacional,
(continued)
F,
10%,
1/01/29
................
16,530,000
BRL
$
3,386,168
16,071,872
Colombia
5.6%
Colombia
Government
Bond,
Senior
Bond,
9.85%,
6/28/27
............
262,000,000
COP
60,474
Colombia
Titulos
de
Tesoreria
,
B,
6.25%,
11/26/25
..............
131,000,000
COP
28,996
B,
7.5%,
8/26/26
...............
17,375,200,000
COP
3,900,093
B,
6%,
4/28/28
.................
3,627,000,000
COP
743,514
B,
7.75%,
9/18/30
..............
29,302,000,000
COP
6,233,606
B,
7%,
3/26/31
.................
2,480,800,000
COP
500,240
B,
13.25%,
2/09/33
.............
6,663,000,000
COP
1,869,379
B,
7.25%,
10/18/34
.............
4,900,000,000
COP
945,523
B,
6.25%,
7/09/36
..............
1,386,000,000
COP
239,927
B,
9.25%,
5/28/42
..............
3,696,000,000
COP
791,233
15,312,985
Dominican
Republic
5.4%
d
Dominican
Republic
Government
Bond
,
Senior
Bond,
144A,
4.875%,
9/23/32
2,150,000
1,835,335
Senior
Bond,
Reg
S,
6.85%,
1/27/45
14,000,000
12,742,737
14,578,072
Ecuador
6.4%
d
Ecuador
Government
Bond
,
Senior
Bond,
144A,
2.5%,
7/31/35
..
30,733,500
10,742,247
Senior
Bond,
144A,
1.5%,
7/31/40
..
14,045,250
4,389,141
Senior
Note,
144A,
5.5%,
7/31/30
..
4,972,000
2,415,540
17,546,928
Egypt
7.8%
d
Egypt
Government
Bond
,
Senior
Bond,
144A,
7.6%,
3/01/29
..
7,270,000
4,726,154
Senior
Bond,
144A,
5.875%,
2/16/31
1,990,000
1,100,868
Senior
Bond,
144A,
7.625%,
5/29/32
1,080,000
630,180
Senior
Bond,
144A,
7.3%,
9/30/33
..
6,170,000
3,413,861
Senior
Bond,
144A,
8.5%,
1/31/47
..
8,950,000
4,778,495
Senior
Bond,
144A,
7.903%,
2/21/48
290,000
149,724
Senior
Bond,
144A,
8.7%,
3/01/49
..
540,000
292,631
Senior
Bond,
144A,
8.875%,
5/29/50
2,270,000
1,229,591
Senior
Bond,
144A,
8.75%,
9/30/51
.
7,950,000
4,310,649
Senior
Bond,
144A,
7.5%,
2/16/61
..
1,130,000
569,791
21,201,944
El
Salvador
0.6%
d
El
Salvador
Government
Bond,
Senior
Bond,
144A,
7.65%,
6/15/35
.......
2,650,000
1,574,201
Ethiopia
2.7%
d
Ethiopia
Government
Bond,
Senior
Bond,
144A,
6.625%,
12/11/24
.....
10,520,000
7,297,082
Templeton
Emerging
Markets
Income
Fund
Schedule
of
Investments
(unaudited)
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
Semiannual
Report
a
a
Industry
Principal
Amount
*
a
Value
a
a
a
a
a
a
Foreign
Government
and
Agency
Securities
(continued)
Ghana
1.8%
e
Ghana
Government
Bond
,
PIK,
8.35%,
2/16/27
.............
15,930,860
GHS
$
743,523
PIK,
8.5%,
2/15/28
..............
15,930,860
GHS
649,951
PIK,
8.65%,
2/13/29
.............
15,461,676
GHS
566,684
PIK,
8.8%,
2/12/30
..............
15,461,676
GHS
516,734
PIK,
8.95%,
2/11/31
.............
14,473,555
GHS
448,797
PIK,
9.1%,
2/10/32
..............
14,473,555
GHS
423,341
PIK,
9.25%,
2/08/33
.............
14,473,555
GHS
408,225
PIK,
9.4%,
2/07/34
..............
7,904,968
GHS
214,975
PIK,
9.55%,
2/06/35
.............
7,904,968
GHS
209,265
PIK,
9.7%,
2/05/36
..............
7,904,968
GHS
205,263
PIK,
9.85%,
2/03/37
.............
7,904,968
GHS
202,539
PIK,
10%,
2/02/38
..............
7,904,968
GHS
200,765
4,790,062
Hungary
6.2%
Hungary
Government
Bond
,
3%,
6/26/24
...................
1,000,000,000
HUF
2,723,458
1%,
11/26/25
..................
2,010,100,000
HUF
4,918,136
3%,
10/27/27
..................
172,900,000
HUF
421,746
4.75%,
11/24/32
................
3,566,400,000
HUF
8,873,709
16,937,049
India
5.3%
India
Government
Bond,
7.26%,
1/14/29
1,177,000,000
INR
14,473,134
Indonesia
5.9%
Indonesia
Government
Bond
,
FR59,
7%,
5/15/27
..............
1,445,000,000
IDR
99,387
FR68,
8.375%,
3/15/34
..........
41,273,000,000
IDR
3,156,194
FR73,
8.75%,
5/15/31
...........
3,985,000,000
IDR
304,089
FR82,
7%,
9/15/30
..............
4,047,000,000
IDR
279,665
FR87,
6.5%,
2/15/31
............
6,848,000,000
IDR
458,659
FR91,
6.375%,
4/15/32
..........
19,224,000,000
IDR
1,282,411
FR96,
7%,
2/15/33
..............
150,696,000,000
IDR
10,531,916
16,112,321
Ivory
Coast
3.8%
d
Ivory
Coast
Government
Bond
,
Senior
Bond,
144A,
5.25%,
3/22/30
.
2,500,000
EUR
2,313,420
Senior
Bond,
144A,
5.875%,
10/17/31
4,000,000
EUR
3,666,506
Senior
Bond,
144A,
4.875%,
1/30/32
5,000,000
EUR
4,261,144
10,241,070
Malaysia
11.1%
Malaysia
Government
Bond
,
3.9%,
11/30/26
.................
4,970,000
MYR
1,076,621
3.502%,
5/31/27
................
1,660,000
MYR
353,765
3.899%,
11/16/27
...............
58,430,000
MYR
12,645,911
3.519%,
4/20/28
................
7,210,000
MYR
1,539,868
3.733%,
6/15/28
................
5,790,000
MYR
1,245,949
3.885%,
8/15/29
................
3,120,000
MYR
672,036
4.498%,
4/15/30
................
15,960,000
MYR
3,575,348
3.582%,
7/15/32
................
43,680,000
MYR
9,164,865
30,274,363
Templeton
Emerging
Markets
Income
Fund
Schedule
of
Investments
(unaudited)
Semiannual
Report
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
a
a
Industry
Principal
Amount
*
a
Value
a
a
a
a
a
a
Foreign
Government
and
Agency
Securities
(continued)
Mexico
5.3%
Mexican
Bonos
,
M,
10%,
11/20/36
...............
17,130,000
MXN
$
1,106,836
M,
Senior
Bond,
7.75%,
11/23/34
...
53,170,000
MXN
2,901,498
Mexican
Bonos
Desarr
Fixed
Rate
,
M,
7.5%,
5/26/33
...............
85,760,000
MXN
4,615,696
M,
Senior
Bond,
8.5%,
5/31/29
.....
8,900,000
MXN
515,213
M,
Senior
Bond,
8.5%,
11/18/38
....
31,390,000
MXN
1,787,637
M,
Senior
Bond,
7.75%,
11/13/42
...
67,590,000
MXN
3,543,884
14,470,764
Mongolia
2.1%
d
Mongolia
Government
Bond
,
Senior
Bond,
144A,
4.45%,
7/07/31
.
5,570,000
4,330,207
Senior
Note,
144A,
5.125%,
4/07/26
.
200,000
186,496
Senior
Note,
144A,
3.5%,
7/07/27
..
1,380,000
1,154,120
5,670,823
Oman
5.7%
d
Oman
Government
Bond,
Senior
Bond,
144A,
4.75%,
6/15/26
............
15,970,000
15,550,931
Peru
2.8%
Peru
Bonos
de
la
Tesoreria,
5.7%,
8/12/24
......................
27,600,000
PEN
7,563,531
Romania
2.5%
d
Romania
Government
Bond
,
144A,
1.75%,
7/13/30
............
950,000
EUR
792,600
144A,
2.75%,
4/14/41
............
1,420,000
EUR
954,113
144A,
2.875%,
4/13/42
...........
7,350,000
EUR
4,947,258
6,693,971
Seychelles
1.5%
d
Seychelles
International
Bond,
Senior
Bond,
Reg
S,
8%,
1/01/26
........
3,931,020
3,970,252
Sri
Lanka
0.8%
d,f
Sri
Lanka
Government
Bond
,
Senior
Bond,
144A,
6.85%,
11/03/25
940,000
447,933
Senior
Bond,
144A,
6.2%,
5/11/27
..
2,670,000
1,229,287
Senior
Bond,
144A,
6.75%,
4/18/28
.
200,000
92,102
Senior
Bond,
144A,
7.85%,
3/14/29
.
291,000
133,975
Senior
Note,
144A,
5.75%,
4/18/23
..
200,000
91,232
Senior
Note,
144A,
6.35%,
6/28/24
..
400,000
184,230
2,178,759
Thailand
5.3%
Thailand
Government
Bond
,
1%,
6/17/27
...................
478,560,000
THB
12,904,159
Senior
Note,
2.65%,
6/17/28
......
49,800,000
THB
1,431,614
14,335,773
Uzbekistan
3.4%
d
Uzbekistan
Government
Bond,
Senior
Note,
144A,
14%,
7/19/24
........
107,400,000,000
UZS
9,174,751
Templeton
Emerging
Markets
Income
Fund
Schedule
of
Investments
(unaudited)
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
Semiannual
Report
a
a
Industry
Principal
Amount
*
a
Value
a
a
a
a
a
a
Foreign
Government
and
Agency
Securities
(continued)
Zambia
2.9%
Zambia
Government
Bond,
14%,
11/23/27
.....................
182,000,000
ZMW
$
7,790,293
Total
Foreign
Government
and
Agency
Securities
(Cost
$321,725,501)
............
279,203,982
Shares
Escrows
and
Litigation
Trusts
0.0%
a,b
K2016470219
South
Africa
Ltd.,
Escrow
Account
......................
1,140,749
—
Total
Escrows
and
Litigation
Trusts
(Cost
$–)
...................................
—
Total
Long
Term
Investments
(Cost
$373,344,748)
...............................
294,344,850
Short
Term
Investments
7.2%
a
a
Industry
Principal
Amount
*
a
Value
a
a
a
a
a
a
U.S.
Government
and
Agency
Securities
2.4%
United
States
2.4%
h
U.S.
Treasury
Bills,
7/06/23
.........
6,500,000
6,497,323
Total
U.S.
Government
and
Agency
Securities
(Cost
$6,497,335)
..................
6,497,323
Shares
Money
Market
Funds
4.8%
United
States
4.8%
i,j
Institutional
Fiduciary
Trust
-
Money
Market
Portfolio,
4.699%
.........
13,044,018
13,044,018
Total
Money
Market
Funds
(Cost
$13,044,018)
..................................
13,044,018
a
a
a
a
a
Total
Short
Term
Investments
(Cost
$19,541,353
)
................................
19,541,341
a
a
a
Total
Investments
(Cost
$392,886,101)
115.6%
..................................
$313,886,191
k
Credit
Facility
(18.4)%
........................................................
(50,000,000)
Other
Assets,
less
Liabilities
2.8%
.............................................
7,738,913
Net
Assets
100.0%
...........................................................
$271,625,104
a
a
a
*
The
principal
amount
is
stated
in
U.S.
dollars
unless
otherwise
indicated.
†
Rounds
to
less
than
0.1%
of
net
assets.
a
Fair
valued
using
significant
unobservable
inputs.
See
Note
11
regarding
fair
value
measurements.
b
Non-income
producing.
c
See
Note
8
regarding
restricted
securities.
d
Security
was
purchased
pursuant
to
Rule
144A
or
Regulation
S
under
the
Securities
Act
of
1933.
144A
securities
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.
Regulation
S
securities
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.
At
June
30,
2023,
the
aggregate
value
of
these
securities
was
$115,968,903,
representing
42.7%
of
net
assets.
e
Income
may
be
received
in
additional
securities
and/or
cash.
f
See
Note
6
regarding
credit
risk
and
defaulted
securities.
g
Perpetual
security
with
no
stated
maturity
date.
h
The
security
was
issued
on
a
discount
basis
with
no
stated
coupon
rate.
i
See
Note
3(c)
regarding
investments
in
affiliated
management
investment
companies.
j
The
rate
shown
is
the
annualized
seven-day
effective
yield
at
period
end.
k
See
Note
10
regarding
Credit
Facility.
Templeton
Emerging
Markets
Income
Fund
Schedule
of
Investments
(unaudited)
Semiannual
Report
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
At
June
30,
2023,
the
Fund
had
the
following
forward
exchange
contracts
outstanding.
See
Note
1(c).
Forward
Exchange
Contracts
Currency
Counter-
party
a
Type
Quantity
Contract
Amount
*
Settlement
Date
Unrealized
Appreciation
Unrealized
Depreciation
a
a
a
a
a
a
a
a
OTC
Forward
Exchange
Contracts
Brazilian
Real
......
JPHQ
Buy
15,260,000
2,997,594
7/05/23
$
189,241
$
—
Brazilian
Real
......
JPHQ
Sell
15,260,000
3,182,482
7/05/23
—
(4,353)
Brazilian
Real
......
MSCO
Buy
44,800,000
8,801,312
7/05/23
554,534
—
Brazilian
Real
......
MSCO
Sell
44,800,000
9,339,170
7/05/23
—
(16,676)
Indian
Rupee
......
HSBK
Buy
1,382,976,200
16,727,258
7/10/23
123,446
—
Indian
Rupee
......
HSBK
Sell
1,382,976,200
16,849,125
7/10/23
—
(1,578)
Peruvian
Nuevo
Sol
.
JPHQ
Buy
6,695,600
1,828,649
7/10/23
16,264
—
Peruvian
Nuevo
Sol
.
JPHQ
Sell
6,695,600
1,844,518
7/10/23
—
(396)
Chilean
Peso
......
GSCO
Buy
2,383,920,000
2,940,389
7/12/23
29,716
—
Chilean
Peso
......
GSCO
Sell
2,383,920,000
2,992,206
7/12/23
22,101
—
Chilean
Peso
......
GSCO
Buy
3,835,168,280
3,839,302
7/26/23
928,368
—
Chilean
Peso
......
GSCO
Sell
1,976,000,000
2,467,194
7/26/23
10,739
—
Chilean
Peso
......
GSCO
Buy
7,388,502,857
9,010,369
8/04/23
161,572
—
Uruguayan
Peso
....
HSBK
Buy
565,240,000
14,307,700
8/08/23
587,781
—
Indian
Rupee
......
HSBK
Buy
356,808,577
4,324,795
8/14/23
16,418
—
Chilean
Peso
......
MSCO
Buy
5,214,270,000
6,470,120
8/16/23
—
(5,974)
Brazilian
Real
......
JPHQ
Buy
15,260,000
3,147,106
9/05/23
27,135
—
Brazilian
Real
......
MSCO
Buy
44,800,000
9,235,209
9/05/23
83,661
—
Peruvian
Nuevo
Sol
.
JPHQ
Buy
6,695,600
1,837,431
9/05/23
—
(282)
Columbian
Peso
....
JPHQ
Buy
65,129,500,000
13,274,126
9/14/23
2,059,247
—
Thai
Baht
.........
DBAB
Buy
228,394,000
6,640,326
9/14/23
—
(133,735)
Chilean
Peso
......
CITI
Buy
1,788,940,000
2,125,642
9/20/23
83,545
—
Chilean
Peso
......
GSCO
Buy
1,445,825,777
1,768,486
9/20/23
16,984
—
Indian
Rupee
......
CITI
Buy
837,760,460
10,133,178
9/20/23
47,534
—
South
Korean
Won
..
DBAB
Buy
17,292,000,000
13,570,336
9/20/23
—
(391,341)
South
Korean
Won
..
HSBK
Buy
526,000,000
416,264
9/20/23
—
(15,377)
Thai
Baht
.........
DBAB
Buy
166,398,000
4,848,073
9/20/23
—
(105,220)
Thai
Baht
.........
DBAB
Buy
71,000,000
2,034,384
9/29/23
—
(9,109)
Indian
Rupee
......
HSBK
Buy
1,382,976,200
16,804,085
10/05/23
—
(4,508)
Columbian
Peso
....
GSCO
Buy
31,120,000,000
6,123,875
10/12/23
1,156,432
—
Columbian
Peso
....
MSCO
Buy
45,760,000,000
9,838,110
10/12/23
867,122
—
Total
Forward
Exchange
Contracts
...................................................
$6,981,840
$(688,549)
Net
unrealized
appreciation
(depreciation)
............................................
$6,293,291
*
In
U.S.
dollars
unless
otherwise
indicated.
a
May
be
comprised
of
multiple
contracts
with
the
same
counterparty,
currency
and
settlement
date.
Templeton
Emerging
Markets
Income
Fund