<PAGE>
TEMPLETON GLOBAL
INCOME FUND
YOUR FUND'S OBJECTIVE:
The Templeton Global Income Fund seeks current income, with capital appreciation
and growth of income, by investing primarily in a portfolio of debt securities
of companies, governments and government agencies of various nations throughout
the world.
January 16, 1996
Dear Shareholder:
This report for the quarter ended November 30, 1995, includes your Fund's long-
term performance, a listing of investments, and a brief commentary from the
Fund's manager regarding the investment environment.
It is one of four reports you will receive during the Fund's fiscal year. Next
quarter, you'll receive the semi-annual report covering the six months ended
February 29, 1996. The semi-annual report provides a more comprehensive
discussion of the financial markets and their impact on the Fund, a summary of
the Fund's performance, and an in-depth manager's discussion and analysis. Also
included are the Fund's unaudited financial statements and complete investment
portfolio.
If you have any questions about this quarterly update, you may call the Franklin
Templeton Fund Information Department at 1-800/342-5236.
TEMPLETON GLOBAL INCOME FUND
Cumulative Total Returns*
Periods ended 11/30/95
<TABLE>
<CAPTION>
Since
Inception
One-Year Five-Year (11/22/88)
<S> <C> <C> <C>
Based on change
in net asset value 14.51% 47.39% 82.20%
Based on change
in market price 13.68% 34.02% 47.77%
</TABLE>
*Cumulative total return calculations show the change in value of an investment
over the periods indicated. These calculations assume reinvestment of all
distributions and capital gains, either at net asset value or at market price on
the reinvestment date in accordance with the dividend reinvestment plan.
Investments in foreign securities involve special risks, such as market and
currency volatility and adverse economic, social and political developments in
the countries where the fund is invested. Developing markets involve heightened
risks related to the same factors, in addition to risks associated with the
relatively small size and lesser liquidity of these markets.
Past performance is not predictive of future results.
1
<PAGE>
Manager's Discussion
One of the most important financial events of the twentieth century is
approaching its final stages. Planning initiated by the founders of the
European Economic Community in the early 1950s is likely to culminate in a
common European currency in the next five to ten years. For the average
American, the novelty of a European common currency masks the wrenching
structural transformations that have taken place in the European economic
framework, which have made such a currency possible.
Probably the most important developments have taken place in government finance.
As Americans, we are well aware of the ongoing debate about social spending in
the United States, but Europe is the real home of the modern welfare state. In
the 1950s and 1960s, European workers enjoyed unemployment compensation nearly
equal to full working salaries, as well as pensions guaranteed by the government
at early retirement ages. By the mid-1980s, such conditions had fostered low
economic growth, high unemployment, large fiscal deficits, and weak currencies
- -- an environment the financial markets termed "Eurosclerosis."
In the late 1980s, however, attitudes began to change. The opening of European
financial markets to foreign capital flows forced European governments to
compete for capital, and it became clear that only through reform, such as a
common currency, could they continue to attract foreign investment. However,
membership in a common currency union was to be allowed only if countries met
stringent criteria concerning low inflation and healthy government finances. By
1995, many European countries were experiencing slow economic growth, lower
interest rates, and stable inflation -- a climate conducive to investing.
Although some countries lag behind others, in our opinion these weaker countries
will make whatever reforms are necessary in order to participate in the positive
economic environment enjoyed by the European leaders. We shall therefore
continue to monitor all European markets in the belief that they will provide
investment opportunities for our shareholders in the years to come.
Sincerely,
/s/ Neil S. Devlin
Neil S. Devlin
Portfolio Manager
Templeton Global Income Fund, Inc.
2
<PAGE>
Templeton Global Income Fund, Inc.
Investment Portfolio, November 30, 1995 (unaudited)
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<TABLE>
<CAPTION>
PRINCIPAL IN
LOCAL CURRENCY* VALUE
- -------------------------------------------------------------------------------
<C> <C> <S> <C>
BONDS--CORPORATE: 7.6%
- -------------------------------------------------------------------------------
4,250,000 U.S. Bombril SA, 8.00%, 8/26/98 $ 3,771,875
10,000,000 Can. British Petroleum Co. PLC, 10.875%,
8/01/01 8,461,850
5,750,000 U.S. Companhia Suzano Papel, 10.25%, 10/06/01 5,462,500
5,101,180 U.S. Electricidad de Caracas, FRN, 9/30/03 2,110,613
4,750,000 U.S. Empresa Colombiana de Petroleos, 7.25%,
7/08/98 4,738,125
7,700,000 U.S. Essar Gujarat Ltd., 8.40%, 7/15/99, 144a 7,671,125
2,500,000 U.S. Henderson Capital International Ltd.,
4.25%, 10/27/96 2,537,500
2,000,000 U.S. Hidroelectrica Alicura SA, 8.375%,
3/15/99, 144a 1,770,000
4,750,000 U.S. Klabin Fabricadora de Papel Celulose SA,
11.00%, 4/15/98, 144a 4,750,000
10,700,000 Aus. News America Holdings, 8.625%, 02/07/14 7,026,431
5,000,000 U.S. Pohang Iron & Steel, 6.625%, 7/01/03 5,018,850
5,000,000 U.S. Quantas Airways Ltd., 7.50%, 6/30/03 5,187,400
8,000,000 U.S. Telecom Argentina Stet-France SA, 8.375%,
10/18/00, 144a 7,265,000
3,000,000 U.S. Telecom Brasileiras, 10.375%, 9/09/97 3,056,250
7,500,000 U.S. Telefonica de Argentina SA, 8.375%,
10/01/00, 144a 6,750,000
------------
TOTAL BONDS--CORPORATE 75,577,519
- -------------------------------------------------------------------------------
BONDS--GOVERNMENT & GOVERNMENT AGENCIES: 86.2%
- -------------------------------------------------------------------------------
9,000,000 Ger. Bank Foreign Economic Affairs Russia,
7.50%, 9/27/96 6,145,909
3,000,000 U.S. Bocon Previsionales II, FRN, 4/01/01 2,684,250
Buoni Poliennali del Tes:
19,775,000,000 Itl. 8.50%, 8/01/99 11,478,311
12,730,000,000 Itl. 10.50%, 9/01/05 7,651,206
23,790,000 Ger. Deutsche Bundespost, 7.75%, 10/01/04 17,917,540
14,300,000 Aus. Eurofima, 9.875%, 1/17/07 11,386,787
20,480,000 Ger. Federal Republic of Germany, Bundes,
8.00%, 1/21/02 15,836,621
19,120,000 Ger. Federal Republic of Germany, Unity, 8.75%,
8/20/01 15,303,138
Government of Denmark:
49,000,000 Den. 9.00%, 11/15/98 9,467,648
100,150,000 Den. 8.00%, 5/15/03 18,807,285
Government of France:
108,156,000 Fr. 8.50%, 3/28/00 23,587,270
101,936,000 Fr. 9.50%, 1/25/01 23,276,547
107,990,000 Fr. 9.50%, 1/25/01 23,098,829
Government of Italy:
9,500,000,000 Itl. 12.00%, 1/01/96 5,912,008
13,990,000,000 Itl. 12.00%, 1/01/97 8,844,348
20,750,000,000 Itl. 12.00%, 1/20/98 13,296,910
12,860,000,000 Itl. FRN, 8/01/99 8,103,452
31,460,000,000 Itl. 10.50%, 7/15/00 19,387,374
</TABLE>
3
<PAGE>
Templeton Global Income Fund, Inc.
Investment Portfolio, November 30, 1995 (unaudited) (cont.)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PRINCIPAL IN
LOCAL CURRENCY* VALUE
- -------------------------------------------------------------------------
<C> <C> <S> <C>
BONDS--GOVERNMENT & GOVERNMENT AGENCIES (CONT.)
- -------------------------------------------------------------------------
Government of New Zealand:
15,255,000 N.Z. 6.50%, 2/15/00 $ 9,719,579
145,000 N.Z. 10.00%, 3/15/02 108,618
13,950,000 N.Z. 8.00%, 4/15/04 9,669,329
Government of Spain:
3,342,000,000 Sp. 11.90%, 7/15/96 27,434,470
2,156,680,000 Sp. 12.25%, 3/25/00 18,906,273
1,872,700,000 Sp. 11.30%, 1/15/02 16,039,993
1,358,400,000 Sp. 10.00%, 2/28/05 10,848,023
26,330,000 Ger. International Bank Recon/Dev.,
7.125%, 4/12/05 19,403,687
94,078,000 Den. Kingdom of Denmark, 8.00%, 11/15/01 17,876,919
Kingdom of Sweden:
80,800,000 Swe. 10.25%, 5/05/03 13,386,664
37,200,000 Swe. 9.00%, 4/20/09 5,752,813
10,000,000 U.S. Korea Development Bank, 7.90%,
2/01/02 10,790,700
2,500,000 U.S. Nacional Financiera SNC, 10.625%,
11/22/01 2,343,750
10,000,000 U.S. National Bank of Hungary, 7.95%,
11/01/03 9,087,500
New South Wales Treasury Corp.:
10,100,000 Aus. 12.00%, 12/01/01, 144a 8,914,600
18,900,000 Aus. 7.00%, 4/01/04 12,932,254
NHA Manulife:
3,871,085 Can. #96405089, 9.125%, 6/01/02 3,007,931
2,128,538 Can. #96405378, 9.25%, 8/01/02 1,642,208
4,690,654 Can. #96405386, 9.25%, 8/01/02 3,605,877
5,000,000 U.S. Philippines Development Bank,
8.00%, 7/22/98 5,081,250
77,000,000 Can. Providence of Ontario, 7.75%,
12/08/03 58,093,636
8,000,000 Can. Province of British Columbia,
10.60%, 9/05/20 7,476,168
10,000,000 Aus. Province of Quebec, 9.50%, 10/02/02 7,590,612
46,700,000 Aus. Queensland Treasury Corp., 8.00%,
5/14/03 34,194,334
18,300,000 U.S. Republic of Argentina, 8.375%,
12/20/03 14,502,750
Thailand Military Bank:
90,000,000 Thai. 11.125%, 6/03/96 3,552,782
58,000,000 Thai. 11.00%, 6/05/96 2,293,720
57,000,000 Aus. Treasury Corp. of Victoria, 8.25%,
10/15/03 42,144,087
United Kingdom:
5,775,000 U.K. 9.50%, 1/15/99 9,523,650
13,625,000 U.K. 6.75%, 11/26/04 19,797,414
U.S. Treasury Bonds:
21,030,000 U.S. 10.75%, 5/15/03 27,365,288
5,425,000 U.S. 6.25%, 8/15/23 5,426,682
22,374,000 U.S. 7.625%, 2/15/25 26,614,544
</TABLE>
4
<PAGE>
Templeton Global Income Fund, Inc.
Investment Portfolio, November 30, 1995 (unaudited) (cont.)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PRINCIPAL IN
LOCAL CURRENCY* VALUE
- -------------------------------------------------------------------------
<C> <C> <S> <C>
BONDS--GOVERNMENT & GOVERNMENT AGENCIES (CONT.)
- -------------------------------------------------------------------------
U.S. Treasury Notes:
10,000 U.S. 5.125%, 4/30/98 $ 9,938
16,800,000 U.S. 9.125%, 5/15/99 18,687,312
19,265,000 U.S. 8.00%, 8/15/99 20,845,308
3,827,000 U.S. 7.75%, 12/31/99 4,133,160
6,048,000 U.S. 5.75%, 8/15/03 6,056,528
11,500,000 U.S. 7.25%, 5/15/04 12,623,090
17,950,000 U.S. 11.625%, 11/15/04 25,172,003
29,980,000 U.S. 6.50% 05/15/05 31,539,859
21,000,000 U.S. United Mexican States, 11.1875%,
FRN, 7/20/97, 144a 21,288,750
14,500,000 U.S. Venezuela Front Load Interest
Reduction Bond, 6.00%, 3/31/07 6,833,125
------------
TOTAL BONDS--GOVERNMENT & GOVERNMENT AGENCIES 854,502,613
- -------------------------------------------------------------------------
<CAPTION>
NUMBER OF
SHARES**
- -------------------------------------------------------------------------
<C> <C> <S> <C>
COMMON STOCK: 0.7%
- -------------------------------------------------------------------------
355,000 U.S. American Health Properties Inc. 7,055,625
- -------------------------------------------------------------------------
PREFERRED STOCKS: 0.3%
- -------------------------------------------------------------------------
35,500 U.S. American Health Properties
Psychiatric Group, pfd. 505,875
91,500 Sp. Santander Finance Ltd., B, pfd. 2,276,062
------------
TOTAL PREFERRED STOCKS 2,781,937
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<CAPTION>
PRINCIPAL IN
LOCAL CURRENCY*
- -------------------------------------------------------------------------
<C> <C> <S> <C>
SHORT TERM OBLIGATIONS: 3.5%
- -------------------------------------------------------------------------
100,000,000 Thai. Bangkok Bank, 11.50%, 5/16/96 3,962,170
3,730,000 U.S. Federal Farm Credit Banks, 5.66%,
12/15/95 3,721,719
940,000 U.S. Federal Home Loan Bank, 5.59%,
1/12/96 933,824
1,235,000 U.S. Federal National Mortgage Assn.,
5.58%, 12/5/95 1,234,222
77,000,000 Swe. Sweden Treasury Bill, 8.68%,
11/20/96 10,746,465
13,910,000 U.S. U.S. Treasury Bills, 5.15% to 5.63%
with maturities to 1/25/96 13,859,699
------------
TOTAL SHORT TERM OBLIGATIONS 34,458,099
- -------------------------------------------------------------------------
TOTAL INVESTMENTS: 98.3% 974,375,793
UNREALIZED GAIN IN FORWARD EXCHANGE CONTRACTS: 0.1% 716,826
OTHER ASSETS, LESS LIABILITIES: 1.6% 15,768,837
------------
TOTAL NET ASSETS: 100.0% $990,861,456
============
</TABLE>
*CURRENCY OF COUNTRIES INDICATED.
**COUNTRY OF ORIGIN.
5
<PAGE>
Templeton Global Income Fund, Inc.
Financial Highlights, November 30, 1995 (unaudited)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
NET ASSET VALUE
TOTAL NET ASSETS PER SHARE
-------------------------- ----------------
<S> <C> <C> <C> <C>
Net Asset Value:
Beginning of period, September 1,
1995 $964,012,755 $ 8.00
Net investment income $ 17,955,030 $ .15
Distribution from net investment
income (18,068,010) (.15)
Net realized and unrealized gain
from security transactions 26,961,681 .23
------------ -------
Net increase in net asset value 26,848,701 .23
------------ -------
End of period, November 30, 1995 $990,861,456 $ 8.23
============ =======
</TABLE>
- ---
This report is sent to the shareholders of Templeton Global Income Fund for
their information. It is not a prospectus, circular, or representation intended
for use in the purchase or sale of shares of the Fund or of any securities men-
tioned in the report.
6
<PAGE>
Notes
-----
<PAGE>
- --------------------------------------------------------------------------------
- ------------------------------------------
TEMPLETON GLOBAL INCOME FUND, INC.
700 Central Avenue
St. Petersburg,
Florida 33701-3628
Investors should be aware that the value
of investments made for the Fund may go
up as well as down and that the
Investment Manager may make errors in
selecting securities for the Fund's
portfolio. Like any investment in
securities, the Fund's portfolio will be
subject to the risk of loss from market,
currency, economic, political, and other
factors. The Fund and Fund investors are
not protected from such losses by the
Investment Manager. Therefore, investors
who cannot accept the risk of such losses
should not invest in shares of the Fund.
To ensure the highest quality of service,
telephone calls to or from our service
departments may be monitored,
recorded, and accessed. These calls
can be determined by the presence of
a regular beeping tone.
- ------------------------------------------
[RECYCLED PAPER LOGO APPEARS HERE] TLGIM Q95 01/96
TEMPLETON
GLOBAL
INCOME
FUND, INC.
First Quarter Report
November 30, 1995
[LOGO OF FRANKLIN TEMPLETON APPEARS HERE]
- --------------------------------------------------------------------------------
