nq-tei113015.htm - Generated by SEC Publisher for SEC Filing

Washington, DC 20549








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)


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:  11/30/15_



Item 1. Schedule of Investments.






























Templeton Emerging Markets Income Fund

Statement of Investments, November 30, 2015 (unaudited)

  Warrants     Value
Warrants 0.0%        
South Africa 0.0%        
a,iEdcon Holdings Ltd., F wts., 2/20/49 4,375   $
a,iEdcon Holdings Ltd., F1 wts., 2/20/49 78,291,411    
a,iEdcon Holdings Ltd., F2 wts., 2/20/49 6,335,969    
Total Warrants (Cost $—)      
  Principal Amount*  
Foreign Government and Agency Securities 58.4%        
Bosnia & Herzegovina 0.4%        
bGovernment of Bosnia & Herzegovina, FRN, 0.875%, 12/11/17 4,769,490   DEM 2,370,608
Brazil 7.5%        
Nota Do Tesouro Nacional,        
10.00%, 1/01/17 6,300 c BRL 1,543,226
10.00%, 1/01/21 1,725 c BRL 361,169
dIndex Linked, 6.00%, 5/15/17 134 c BRL 94,439
dIndex Linked, 6.00%, 5/15/19 16,424 c BRL 11,179,082
dIndex Linked, 6.00%, 8/15/22 11,920 c BRL 7,807,526
dIndex Linked, 6.00%, 5/15/23 13,639 c BRL 8,880,908
dIndex Linked, 6.00%, 8/15/24 3,340 c BRL 2,191,663
dIndex Linked, 6.00%, 8/15/50 18,020 c BRL 11,006,837
Croatia 1.5%        
eGovernment of Croatia, 144A, 6.75%, 11/05/19 7,920,000     8,610,703
Ecuador 4.2%        
eGovernment of Ecuador, senior note, 144A, 7.95%, 6/20/24 31,380,000     24,232,264
El Salvador 0.4%        
eGovernment of El Salvador, 144A, 7.65%, 6/15/35 2,650,000     2,390,499
Ethiopia 1.6%        
eFederal Democratic Republic of Ethiopia, 144A, 6.625%, 12/11/24 10,000,000     9,338,850
Georgia 0.6%        
eGovernment of Georgia, 144A, 6.875%, 4/12/21 3,050,000     3,255,341
Ghana 3.5%        
Ghana Treasury Note,        
24.25%, 10/09/17 1,130,000   GHS 301,083
23.95%, 11/06/17 610,000   GHS 162,025
Government of Ghana,        
16.90%, 3/07/16 430,000   GHS 110,936
19.24%, 5/30/16 11,875,000   GHS 3,054,531
23.00%, 2/13/17 9,670,000   GHS 2,532,026
25.48%, 4/24/17 230,000   GHS 61,918
24.44%, 5/29/17 3,670,000   GHS 978,813
26.00%, 6/05/17 130,000   GHS 35,319
25.40%, 7/31/17 3,410,000   GHS 920,592
23.00%, 8/21/17 13,160,000   GHS 3,442,448
23.23%, 2/19/18 3,340,000   GHS 876,166
22.49%, 4/23/18 1,730,000   GHS 448,127
23.47%, 5/21/18 8,220,000   GHS 2,168,349
19.04%, 9/24/18 14,300,000   GHS 3,441,427
24.50%, 10/22/18 5,917,000   GHS 1,592,350
21.00%, 3/23/20 110,000   GHS 26,765
Hungary 3.5%        
Government of Hungary,        
5.375%, 2/21/23 3,500,000     3,851,138


Quarterly Statement of Investments | See Notes to Statement of Investments.


Templeton Emerging Markets Income Fund        
Statement of Investments, November 30, 2015 (unaudited) (continued)        
senior note, 6.375%, 3/29/21 14,250,000     16,344,251
India 1.1%        
Government of India,        
senior bond, 7.80%, 5/03/20 68,300,000   INR 1,028,562
senior bond, 8.35%, 5/14/22 20,200,000   INR 310,324
senior bond, 8.28%, 9/21/27 20,600,000   INR 316,405
senior bond, 8.60%, 6/02/28 71,000,000   INR 1,116,640
senior note, 7.28%, 6/03/19 2,700,000   INR 40,170
senior note, 8.12%, 12/10/20 51,300,000   INR 779,725
senior note, 7.16%, 5/20/23 12,700,000   INR 182,584
senior note, 8.83%, 11/25/23 171,200,000   INR 2,702,217
Indonesia 3.6%        
Government of Indonesia,        
7.875%, 4/15/19 18,074,000,000   IDR 1,290,066
FR31, 11.00%, 11/15/20 134,139,000,000   IDR 10,644,399
FR36, 11.50%, 9/15/19 40,000,000,000   IDR 3,166,316
FR40, 11.00%, 9/15/25 58,140,000,000   IDR 4,826,440
FR61, 7.00%, 5/15/22 1,720,000,000   IDR 114,594
senior bond, 5.625%, 5/15/23 703,000,000   IDR 42,797
senior bond, FR53, 8.25%, 7/15/21 5,281,000,000   IDR 378,663
Iraq 3.5%        
eGovernment of Iraq, 144A, 5.80%, 1/15/28 27,190,000     19,851,691
Kenya 1.0%        
eGovernment of Kenya, senior note, 144A, 6.875%, 6/24/24 6,033,000     5,516,394
Lithuania 0.3%        
eGovernment of Lithuania, 144A, 7.375%, 2/11/20 1,420,000     1,694,465
Mexico 2.5%        
Government of Mexico,        
7.25%, 12/15/16 367,050 f MXN 2,295,825
7.75%, 12/14/17 1,329,920 f MXN 8,589,840
senior note, M, 5.00%, 6/15/17 607,200 f MXN 3,722,005
Mongolia 1.0%        
eGovernment of Mongolia, senior note, 144A, 5.125%, 12/05/22 7,100,000     5,775,459
Senegal 1.1%        
eGovernment of Senegal, 144A, 6.25%, 7/30/24 6,900,000     6,410,238
Serbia 4.3%        
eGovernment of Serbia, senior note, 144A, 7.25%, 9/28/21 11,080,000     12,685,160
Serbia Treasury Bond, 8.00%, 10/22/20 133,400,000   RSD 1,244,214
Serbia Treasury Note,        
10.00%, 1/30/16 3,510,000   RSD 30,949
10.00%, 5/22/16 17,420,000   RSD 156,578
10.00%, 6/27/16 65,340,000   RSD 590,558
10.00%, 8/15/16 26,900,000   RSD 244,891
10.00%, 10/17/16 15,050,000   RSD 138,225
10.00%, 12/19/16 15,400,000   RSD 142,579
8.00%, 1/12/17 1,540,000   RSD 14,008
8.00%, 3/23/17 400,000   RSD 3,654
8.00%, 4/06/17 9,050,000   RSD 82,735
10.00%, 5/08/17 10,040,000   RSD 94,322
10.00%, 11/08/17 36,330,000   RSD 346,861
10.00%, 4/27/18 744,450,000   RSD 7,230,219
10.00%, 11/21/18 13,450,000   RSD 132,486
10.00%, 3/20/21 56,890,000   RSD 568,538
10.00%, 6/05/21 33,720,000   RSD 332,974



Templeton Emerging Markets Income Fund      
Statement of Investments, November 30, 2015 (unaudited) (continued)      
10.00%, 9/11/21 68,330,000 RSD 677,587
Slovenia 0.4%      
eGovernment of Slovenia, senior note, 144A, 5.85%, 5/10/23 2,210,000   2,535,776
Sri Lanka 3.3%      
Government of Sri Lanka,      
10.60%, 7/01/19 483,950,000 LKR 3,580,404
10.60%, 9/15/19 321,640,000 LKR 2,385,145
8.00%, 11/01/19 18,120,000 LKR 124,176
9.25%, 5/01/20 68,990,000 LKR 488,813
11.20%, 7/01/22 31,680,000 LKR 243,443
e144A, 5.875%, 7/25/22 7,750,000   7,376,915
A, 9.00%, 5/01/21 387,750,000 LKR 2,715,552
A, 11.00%, 8/01/21 259,200,000 LKR 1,969,728
gSupranational 0.9%      
hEastern & Southern African Trade and Development Bank, Reg S, 6.875%, 1/09/16 5,000,000   4,993,500
Ukraine 7.1%      
eGovernment of Ukraine, 144A,      
7.75%, 9/01/19 816,000   799,492
7.75%, 9/01/20 3,628,000   3,523,768
7.75%, 9/01/21 3,506,000   3,369,704
7.75%, 9/01/22 3,406,000   3,252,696
7.75%, 9/01/23 3,406,000   3,239,498
7.75%, 9/01/24 3,406,000   3,220,152
7.75%, 9/01/25 3,406,000   3,192,835
7.75%, 9/01/26 3,406,000   3,187,675
7.75%, 9/01/27 3,406,000   3,166,746
oGDP Linked Securities, 5/31/40 6,852,000   3,220,440
eKyiv Finance PLC, (City of Kiev), loan participation, senior note, 144A, 9.375%, 7/11/16 12,940,000   10,360,761
Zambia 5.1%      
eGovernment of Zambia International Bond,      
144A, 5.375%, 9/20/22 26,070,000   20,142,985
144A, 8.50%, 4/14/24 2,470,000   2,148,320
senior bond, 144A, 8.97%, 7/30/27 7,730,000   6,714,510
Total Foreign Government and Agency Securities (Cost $395,967,968)     335,076,770
Quasi-Sovereign and Corporate Bonds 18.1%      
Bermuda 0.4%      
eDigicel Group Ltd., senior note, 144A, 7.125%, 4/01/22 2,860,000   2,320,175
Canada 1.1%      
eFirst Quantum Minerals Ltd., senior note, 144A, 7.25%, 5/15/22 10,000,000   6,250,000
Chile 2.0%      
eVTR Finance BV, senior secured note, 144A, 6.875%, 1/15/24 12,000,000   11,640,000
Costa Rica 2.4%      
iReventazon Finance Trust, secured bond, first lien, 144A, 8.00%, 11/15/33 14,400,000   13,833,866
Mexico 0.0%      
e,jCorporacion GEO SAB de CV, senior note, 144A, 8.875%, 3/27/22 8,420,000   178,925
Nigeria 3.8%      
eAccess Bank PLC, sub. note, 144A, 9.25% to 6/23/19, FRN thereafter, 6/24/21 10,100,000   9,058,438
eZenith Bank PLC, senior note, 144A, 6.25%, 4/22/19 13,670,000   12,640,854
Peru 0.2%      
ePeru Enhanced Pass-Through Finance Ltd., senior secured bond, A-1, 144A, zero cpn., 1,281,334   1,236,098



Templeton Emerging Markets Income Fund      
Statement of Investments, November 30, 2015 (unaudited) (continued)      
Poland 1.0%      
e,kPlay Topco SA, senior note, 144A, PIK, 7.75%, 2/28/20 5,250,000 EUR 5,721,046
Russia 1.6%      
LUKOIL International Finance BV,      
e144A, 6.656%, 6/07/22 4,540,000   4,760,735
hReg S, 6.656%, 6/07/22 3,970,000   4,165,165
South Africa 1.7%      
eEdcon Ltd., senior secured note, 144A,      
9.50%, 3/01/18 7,250,000   4,558,438
9.50%, 3/01/18 2,828,000 EUR 1,904,981
kPIK, 8.00%, 6/30/19 555,575 EUR 511,300
kPIK, 8.00%, 6/30/19 1,111,150 EUR 1,045,392
kPIK, 12.75%, 6/30/19 1,666,725 EUR 1,568,088
Turkey 1.7%      
eTurkiye Is Bankasi, sub. note, 144A, 6.00%, 10/24/22 3,000,000   2,958,165
eYasar Holdings SA, senior note, 144A, 8.875%, 5/06/20 6,680,000   6,905,450
Ukraine 1.0%      
eUkreiximbank, (BIZ Finance PLC), loan participation, senior bond, 144A, 9.75%, 6,405,000   5,872,424
United States 1.2%      
General Electric Capital Corp., senior note, A, 8.50%, 4/06/18 101,000,000 MXN 6,584,811
Total Quasi-Sovereign and Corporate Bonds (Cost $136,255,065)     103,714,351
Total Investments before Short Term Investments (Cost $532,223,033)     438,791,121
Short Term Investments 19.0%      
Foreign Government and Agency Securities (Cost $9,752,578) 1.7%      
Mexico 1.7%      
lMexico Treasury Bill, 12/10/15 - 10/13/16 16,215,610m MXN 9,651,749
Total Investments before Money Market Funds (Cost $541,975,611)     448,442,870
Money Market Funds (Cost $99,379,667) 17.3%      
United States 17.3%      
a,nInstitutional Fiduciary Trust Money Market Portfolio 99,379,667   99,379,667
Total Investments (Cost $641,355,278) 95.5%     547,822,537
Other Assets, less Liabilities 4.5%     26,022,502
Net Assets 100.0%   $ 573,845,039


Rounds to less than 0.1% of net assets.
* The principal amount is stated in U.S. dollars unless otherwise indicated.
a Non-income producing.
b The coupon rate shown represents the rate at period end.
c Principal amount is stated in 1,000 Brazilian Real Units.
d Redemption price at maturity is adjusted for inflation.


Templeton Emerging Markets Income Fund
Statement of Investments, November 30, 2015 (unaudited) (continued)
e Security was purchased pursuant to Rule 144A under the Securities Act of 1933 and may be sold in transactions exempt from registration only to qualified institutional buyers
or in a public offering registered under the Securities Act of 1933. These securities have been deemed liquid under guidelines approved by the Fund's Board of Trustees. At
November 30, 2015, the aggregate value of these securities was $258,343,846, representing 45.02% of net assets.
f Principal amount is stated in 100 Mexican Peso Units.
g A supranational organization is an entity formed by two or more central governments through international treaties.
h Security was purchased pursuant to Regulation S under the Securities Act of 1933, which exempts from registration securities offered and sold outside of the United States.
Such a security cannot be sold in the United States without either an effective registration statement filed pursuant to the Securities Act of 1933, or pursuant to an exemption
from registration. These securities have been deemed liquid under guidelines approved by the Fund's Board of Trustees. At November 30, 2015, the aggregate value of
these securities was $9,158,665, representing 1.60% of net assets.
i See Note 6 regarding restricted securities.
j Defaulted security or security for which income has been deemed uncollectible.
k Income may be received in additional securities and/or cash.
l The security is traded on a discount basis with no stated coupon rate.
m Principal amount is stated in 10 Mexican Peso Units.
n See Note 7 regarding investments in affiliated management investment companies.
o Security is linked to the Ukrainian GDP and does not pay principal over the life of the security or at expiration. The holder is entitled to receive only variable payments, subject
to certain conditions, which are based on the growth of the Ukrainian GDP and the principal or “notional” value of this GDP linked security.


Templeton Emerging Markets Income Fund          
Statement of Investments, November 30, 2015 (unaudited) (continued)      
At November 30, 2015 the Fund had the following forward exchange contracts outstanding. See Note 3.          
Forward Exchange Contracts                    
        Contract   Settlement   Unrealized   Unrealized  
Currency Counterpartya Type Quantity Amount *   Date   Appreciation   Depreciation  
OTC Forward Exchange Contracts                    
South Korean Won JPHQ Buy 7,297,662,505 6,540,882   12/09/15 $ - $ (251,139 )
Polish Zloty DBAB Buy 16,600,000 3,894,245 EUR 12/10/15   -   (8,781 )
Polish Zloty DBAB Sell 16,600,000 3,904,269 EUR 12/10/15   19,375   -  
Euro SCNY Sell 628,500 746,501   1/13/16   81,423   -  
Japanese Yen CITI Sell 624,500,000 5,267,553   1/14/16   186,607   -  
Japanese Yen SCNY Sell 1,873,240,000 15,899,168   1/14/16   658,445   -  
Japanese Yen HSBK Sell 1,620,890,000 13,203,946   1/19/16   15,086   -  
Japanese Yen SCNY Sell 1,770,880,000 14,343,987   1/19/16   -   (65,311 )
Japanese Yen DBAB Sell 626,420,000 5,069,764   1/22/16   -   (27,584 )
Malaysian Ringgit DBAB Buy 3,942,000 1,020,583   1/22/16   -   (94,844 )
Euro BZWS Sell 2,547,416 2,892,259   1/27/16   195,594   -  
Euro DBAB Sell 1,347,000 1,491,479   2/22/16   64,527   -  
Euro JPHQ Sell 2,260,000 2,504,272   2/22/16   110,129   -  
Euro DBAB Sell 3,345,000 3,671,472   3/31/16   123,663   -  
Ghanaian Cedi BZWS Buy 2,895,477 613,449   4/08/16   81,962   -  
Euro DBAB Sell 688,000 744,987   4/13/16   14,966   -  
Euro SCNY Sell 413,000 443,242   4/13/16   5,017   -  
Euro GSCO Sell 910,000 978,660   5/12/16   12,172   -  
Euro GSCO Sell 2,753,000 2,978,553   5/16/16   54,286   -  
Euro BZWS Sell 1,604,997 1,869,460   5/26/16   164,062   -  
Euro DBAB Sell 1,506,000 1,687,940   6/06/16   87,075   -  
Ghanaian Cedi BZWS Buy 1,780,000 341,323   6/10/16   68,971   -  
Malaysian Ringgit DBAB Buy 2,499,000 639,212   7/20/16   -   (56,784 )
Malaysian Ringgit DBAB Buy 4,793,000 1,224,985   7/27/16   -   (108,309 )
Malaysian Ringgit JPHQ Buy 5,039,000 1,279,584   7/29/16   -   (105,713 )
Euro CITI Sell 358,630 393,902   8/10/16   11,728   -  
Euro DBAB Sell 2,344,550 2,607,374   8/15/16   108,426   -  
Euro MSCO Sell 907,070 1,024,141   8/15/16   57,337   -  
Euro DBAB Sell 359,450 403,005   8/17/16   19,854   -  
Euro MSCO Sell 907,070 1,016,998   8/17/16   50,119   -  
Euro SCNY Sell 362,390 422,134   8/26/16   35,715   -  
Euro DBAB Sell 9,366,031 10,592,982   8/31/16   603,716   -  
Euro HSBK Sell 826,000 936,775   10/13/16   54,127   -  
Euro DBAB Sell 266,000 289,626   11/14/16   4,978   -  
Euro BZWS Sell 10,415,000 11,293,609   11/16/16   147,490   -  
Total Forw ard Exchange Contracts           $ 3,036,850 $ (718,465 )
Net unrealized appreciation (depreciation)         $ 2,318,385      
* a In May U.S. be dollars comprised unless of multiple otherwise contracts indicated. with the same counterparty, currency and settlement date.          



Templeton Emerging Markets Income Fund            
Statement of Investments, November 30, 2015 (unaudited) (continued)        
At November 30, 2015, the Fund had the following interest rate swap contracts outstanding. See Note 3.          
Interest Rate Swap Contracts                  
      Notional Expiration Unrealized   Unrealized  
Description Exchange   Amount Date Appreciation   Depreciation  
Centrally Cleared Swaps                  
Receive Floating rate 3-month USD BBA LIBOR Pay Fixed rate 0.926% LCH $ 17,160,000 10/17/17 $   - $ (4,129 )
Receive Floating rate 3-month USD BBA LIBOR Pay Fixed rate 2.309% LCH   75,850,000 7/29/25     - (2,352,589 )
Receive Floating rate 3-month USD BBA LIBOR Pay Fixed rate 2.752% LCH   39,530,000 7/29/45     - (2,263,135 )
Total Interest Rate Sw ap Contracts         $ - $ (4,619,853 )
Net unrealized appreciation (depreciation)             $ (4,619,853 )


Counterparty / Exchange
BZWS Barclays Bank PLC
CITI Citibank N.A.
DBAB Deutsche Bank AG
GSCO The Goldman Sachs Group, Inc.
JPHQ JPMorgan Chase Bank N.A.
LCH London Clearing House
MSCO Morgan Stanley and Co. Inc.
SCNY Standard Chartered Bank
BRL Brazilian Real
DEM Deutsche Mark
EUR Euro
GHS Ghanaian Cedi
IDR Indonesian Rupiah
INR Indian Rupee
LKR Sri Lankan Rupee
MXN Mexican Peso
RSD Serbian Dinar
Selected Portfolio
FRN Floating Rate Note
GDP Gross Domestic Product
PIK Payment-In-Kind



Templeton Emerging Markets Income Fund

Notes to Statement of Investments (unaudited) 


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


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

Equity securities listed on an exchange or on the NASDAQ National Market System are valued at the last quoted 
sale price or the official closing price of the day, respectively. Foreign equity securities are valued as of the close of 
trading on the foreign stock exchange on which the security is primarily traded or as of 4 p.m. Eastern time, 
whichever is earlier. The value is then converted into its U.S. dollar equivalent at the foreign exchange rate in 
effect at 4 p.m. Eastern time on the day that the value of the security is determined. Over the counter (OTC) 
securities are valued within the range of the most recent quoted bid and ask prices. Securities that trade in 
multiple markets or on multiple exchanges are valued according to the broadest and most representative market. 
Certain equity securities are valued based upon fundamental characteristics or relationships to similar securities. 

Debt securities generally trade in the over the counter (OTC) market rather than on a securities exchange. The 
Fund's pricing services use multiple valuation techniques to determine fair value. In instances where sufficient 
market activity exists, the pricing services may utilize a market based approach through which quotes from market 
makers are used to determine fair value. In instances where sufficient market activity may not exist or is limited, 
the pricing services also utilize proprietary valuation models which may consider market characteristics such as 
benchmark yield curves, credit spreads, estimated default rates, anticipated market interest rate volatility, coupon 
rates, anticipated timing of principal repayments, underlying collateral, and other unique security features in order 
to estimate the relevant cash flows, which are then discounted to calculate the fair value. Securities denominated 
in a foreign currency are converted into their U.S. dollar equivalent at the foreign exchange rate in effect at the 
NYSE close on the date that the values of the foreign debt securities are determined.  

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

Derivative financial instruments (derivatives) listed on an exchange are valued at the official closing price of the 
day. Certain derivatives trade in the OTC market. The Fund’s pricing services use various techniques including 


industry standard option pricing models and proprietary discounted cash flow models to determine the fair value 
of those instruments. The Fund’s net benefit or obligation under the derivative contract, as measured by the fair 
value of the contract, is included in net assets. 

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

Trading in securities on foreign securities stock exchanges and OTC markets may be completed before the daily 
NYSE close. In addition, trading in certain foreign markets may not take place on every NYSE business day. 
Occasionally, events occur between the time at which trading in a foreign security is completed and the close of 
the NYSE that might call into question the reliability of the value of a portfolio security held by the Fund. As a 
result, differences may arise between the value of the Fund’s portfolio securities as determined at the foreign 
market close and the latest indications of value at the close of the NYSE. In order to minimize the potential for 
these differences, the VLOC monitors price movements following the close of trading in foreign stock markets 
through a series of country specific market proxies (such as baskets of American Depositary Receipts, futures 
contracts and exchange traded funds). These price movements are measured against established trigger 
thresholds for each specific market proxy to assist in determining if an event has occurred that may call into 
question the reliability of the values of the foreign securities held by the Fund. If such an event occurs, the 
securities may be valued using fair value procedures, which may include the use of independent pricing services.  

When the last day of the reporting period is a non business day, certain foreign markets may be open on those 
days that the NYSE is closed, which could result in differences between the value of the Fund’s securities on the 
last business day and the last calendar day of the reporting period. Any significant security valuation changes due 
to an open foreign market are adjusted and reflected by the Fund for financial reporting purposes.  


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

 Derivative counterparty credit risk is managed through a formal evaluation of the creditworthiness of all potential 
counterparties. The Fund attempts to reduce its exposure to counterparty credit risk on OTC derivatives, whenever 
possible, by entering into International Swaps and Derivatives Association (ISDA) master agreements with certain 
counterparties. These agreements contain various provisions, including but not limited to collateral requirements, 


events of default, or early termination. Termination events applicable to the counterparty include certain 
deteriorations in the credit quality of the counterparty. Termination events applicable to the Fund include failure 
of the Fund to maintain certain net asset levels and/or limit the decline in net assets over various periods of 
time. In the event of default or early termination, the ISDA master agreement gives the non defaulting party the 
right to net and close out all transactions traded, whether or not arising under the ISDA agreement, to one net 
amount payable by one counterparty to the other. Early termination by the counterparty may result in an 
immediate payment by the Fund of any net liability owed to that counterparty under the ISDA agreement.  

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

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

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


At November 30, 2015, the cost of investments and net unrealized appreciation (depreciation) for income tax 
purposes were as follows:  

Cost of investments $ 641,618,056  
Unrealized appreciation $ 9,455,284  
Unrealized depreciation   (103,250,803 )
Net unrealized appreciation (depreciation) $ (93,795,519 )  



Investing in foreign securities may include certain risks and considerations not typically associated with investing in 
U.S. securities, such as fluctuating currency values and changing local and regional economic, political and social 


conditions, which may result in greater market volatility. In addition, certain foreign securities may not be as liquid as U.S. securities. 


At November 30, 2015, the Fund held investments in restricted securities, excluding certain securities exempt from registration under the Securities Act of 1933 deemed to be liquid, as follows: 

Principal Amount /   Acquisition          
Warrants Issuer Date   Cost   Value  
4,375 Edcon Holdings Ltd., F w ts., 2/20/49 11/27/2015 $ - $ -  
78,291,411 Edcon Holdings Ltd., F1 w ts., 2/20/49 11/27/2015   -   -  
6,335,969 Edcon Holdings Ltd., F2 w ts., 2/20/49 11/27/2015   -   -  
14,400,000 Reventazon Finance Trust, secured bond, first lien, 144A, 8.00%,            
  11/15/33 12/18/2013   14,400,000   13,833,866  
  Total Restricted Securities (Value is 2.41% of Net Assets) $   14,400,000 $ 13,833,866  



 The Fund invests in an affiliated management investment company for purposes other than exercising a controlling influence over the management or policies. Management fees paid by the Fund are waived on assets invested in the affiliated management investment company, in an amount not to exceed the management and administrative fees paid directly or indirectly by each affiliate. Prior to August 31, 2013 the waiver was accounted for as a reduction to management fees. 

                    % of Affiliated Fund  
  Number of Shares       Number of Shares   Value at     Shares Outstanding  
  Held at Beginning Gross Gross   Held at End of   End of   Investment Realized Held at End of  
  of Period Additions Reductions   Period   Period   Income Gain (Loss) Period  
Non-Controlled Affiliates                        
Institutional Fiduciary Trust Money Market Portfolio 100,493,707 26,960,561 (28,074,601 ) 99,379,667 $ 99,379,667 $ - $ - 0.44 %



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

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

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


A summary of inputs used as of November 30, 2015, in valuing the Fund’s assets and liabilities carried at fair value, 
is as follows: 

    Level 1   Level 2   Level 3     Total
Investments in Securities                  
Warrants $ - $ - $ - a $ -
Foreign Government and Agency Securitiesb   -   335,076,770   -     335,076,770
Quasi-Sovereign and Corporate Bondsb   -   89,880,485   13,833,866     103,714,351
Short Term Investments   99,379,667   9,651,749   -     109,031,416
Total Investments in Securities $ 99,379,667 $ 434,609,004 $ 13,833,866   $ 547,822,537
Other Financial Instruments                  
Forw ard Exchange Contracts $ - $ 3,036,850 $ -   $ 3,036,850
Other Financial Instruments                  
Forw ard Exchange Contracts $ - $ 718,465 $ -   $ 718,465
Sw ap Contracts   -   4,619,853   -     4,619,853
Total Other Financial Instruments $ - $ 5,338,318 $ -   $ 5,338,318


aIncludes securities determined to have no value at November 30, 2015.
bFor detailed categories, see the accompanying Statement of Investments.  

A reconciliation of assets in which Level 3 inputs are used in determining fair value is presented when there are 
significant Level 3 financial instruments at the end of the period. The reconciliation of assets for the three months 
ended November 30, 2015, is as follows: 

                            Net Change in Unrealized  
    Balance at   Transfers         Net Unrealized         Appreciation  
    Beginning of Purchases Into (Out of)   Cost Basis   Net Realized Gain Appreciation     Balance at   (Depreciation) on Assets  
    Period (Sales) Level 3   Adjustments   (Loss) (Depreciation)     End of Period   Held at Period End  
Investments in Securities:                              
Quasi-Sovereign and Corporate Bonds $ 14,278,866 $ - $ - $ - $ - $ (445,000 ) $ 13,833,866 $ (445,000  


Significant unobservable valuation inputs developed by the VLOC for material Level 3 financial instruments and 
impact to fair value as a result of changes in unobservable valuation inputs as of November 30, 2015, are as 

              Impact to Fair
    Fair Value at End         Value if Input
Description   of Period Valuation Technique Unobservable Input Amount   Increases a
Investments in Securities:              
Quasi-Sovereign and Corporate Bonds $ 13,833,866 Discounted cash flow model Discount rateb 8.6 % Decrease


aRepresents the expected directional change in the fair value of the Level 3 investments that w ould result from an increase in the corresponding input. A decrease to the
unobservable input w ould have the opposite effect. Significant changes in these inputs could result in significantly higher or low er fair value measurement.
bThe discount rate is comprised of the risk-free rate, the 10-year Costa Rican CDS curve, and an incremental credit spread that combines w ith the first tw o components to
arrive at an 8% yield on issue date for an 8% coupon bond issued at par.


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


For additional information on the Fund's significant accounting policies, please refer to the Fund's most recent semiannual or annual shareholder report. 


Item 2. Controls and Procedures.


(a) Evaluation of Disclosure Controls and Procedures.  The Registrant maintains disclosure controls and procedures that are designed to ensure that information required to be disclosed in the Registrant’s filings under the Securities Exchange Act of 1934 and the Investment Company Act of 1940 is recorded, processed, summarized and reported within the periods specified in the rules and forms of the Securities and Exchange Commission.  Such information is accumulated and communicated to the Registrant’s management, including its principal executive officer and principal financial officer, as appropriate, to allow timely decisions regarding required disclosure.  The Registrant’s management, including the principal executive officer and the principal financial officer, recognizes that any set of controls and procedures, no matter how well designed and operated, can provide only reasonable assurance of achieving the desired control objectives.


Within 90 days prior to the filing date of this Quarterly Schedule of Portfolio Holdings on Form N-Q, the Registrant had carried out an evaluation, under the supervision and with the participation of the Registrant’s management, including the Registrant’s principal executive officer and the Registrant’s principal financial officer, of the effectiveness of the design and operation of the Registrant’s disclosure controls and procedures.  Based on such evaluation, the Registrant’s principal executive officer and principal financial officer concluded that the Registrant’s disclosure controls and procedures are effective.


(b) Changes in Internal Controls.  There have been no changes in the Registrant’s internal controls or in other factors that could materially affect the internal controls over financial reporting subsequent to the date of their evaluation in connection with the preparation of this Quarterly Schedule of Portfolio Holdings on Form N-Q.



Item 3. Exhibits.


(a) Certification pursuant to Section 30a-2 under the Investment Company Act of 1940 of Laura F. Fergerson, Chief Executive Officer - Finance and Administration, and Mark H. Otani, Chief Financial Officer and Chief Accounting Officer.






















Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.


Templeton Emerging Markets Income Fund





    Laura F. Fergerson

    Chief Executive Officer –

    Finance and Administration

Date January 26, 2016



Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated.





    Laura F. Fergerson

    Chief Executive Officer –

    Finance and Administration

Date January 26, 2016




By /s/MARK H. OTANI______________

   Mark H. Otani

   Chief Financial Officer and

   Chief Accounting Officer

Date January 26, 2016