FORM N-Q
QUARTERLY SCHEDULE OF PORTFOLIO HOLDINGS OF
REGISTERED MANAGEMENT INVESTMENT COMPANY
Investment Company Act file number 811-21357
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FRANKLIN TEMPLETON LIMITED DURATION INCOME TRUST
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(Exact name of registrant as specified in charter)
ONE FRANKLIN PARKWAY, SAN MATEO, CA 94403-1906
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(Address of principal executive offices) (Zip code)
CRAIG S. TYLE, ONE FRANKLIN PARKWAY, SAN MATEO, CA 94403-1906
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(Name and address of agent for service)
Registrant's telephone number, including area code: 650 312-2000
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Date of fiscal year end: 3/31
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Date of reporting period: 6/30/07
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Item 1. Schedule of Investments.
Franklin Templeton
Limited Duration Income Trust
QUARTERLY STATEMENT OF INVESTMENTS
JUNE 30, 2007
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CONTENTS
Statement of Investments ................................................. 3
Notes to Statement of Investments ........................................ 14
[LOGO](R)
FRANKLIN TEMPLETON
INVESTMENTS
FRANKLIN o Templeton o Mutual Series
Quarterly Statement of Investments | 1
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Franklin Templeton
Limited Duration Income Trust
STATEMENT OF INVESTMENTS, JUNE 30, 2007 (UNAUDITED)
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COUNTRY PRINCIPAL AMOUNT a VALUE
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LONG TERM INVESTMENTS 149.1%
CORPORATE BONDS 47.5%
COMMERCIAL SERVICES 2.9%
b,c ARAMARK Corp., senior note, 144A, FRN, 8.856%, 2/01/15 .................. United States 1,800,000 $ 1,836,000
Dex Media West LLC, senior sub. note, 9.875%, 8/15/13 ................... United States 4,000,000 4,300,000
JohnsonDiversey Holdings Inc., senior disc. note, 10.67%, 5/15/13 ....... United States 2,500,000 2,600,000
c Rental Service Corp., senior note, 144A, 9.50%, 12/01/14 ................ United States 2,000,000 2,050,000
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10,786,000
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COMMUNICATIONS 4.8%
c Digicel Group Ltd., senior note, 144A, 8.875%, 1/15/15 .................. Jamaica 2,000,000 1,965,000
Dobson Cellular Systems Inc., senior secured note, 9.875%,
11/01/12 .............................................................. United States 2,000,000 2,165,000
Intelsat Subsidiary Holding Co. Ltd., senior note, 8.25%, 1/15/13 ....... Bermuda 3,000,000 3,060,000
c MetroPCS Wireless Inc., senior note, 144A, 9.25%, 11/01/14 .............. United States 900,000 933,750
Millicom International Cellular SA, senior note, 10.00%, 12/01/13 ....... Luxembourg 3,000,000 3,262,500
Qwest Communications International Inc., senior note, B, 7.50%,
2/15/14 ............................................................... United States 3,000,000 3,052,500
c Wind Acquisition Finance SA, senior note, 144A, 10.75%,
12/01/15 .............................................................. Italy 3,000,000 3,457,500
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17,896,250
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CONSUMER DURABLES 3.8%
Beazer Homes USA Inc., senior note, 8.375%, 4/15/12 ..................... United States 2,000,000 1,900,000
Ford Motor Credit Co. LLC,
5.625%, 10/01/08 .................................................... United States 4,000,000 3,949,468
b FRN, 9.806%, 4/15/12 ................................................ United States 1,000,000 1,072,738
senior note, 9.875%, 8/10/11 ........................................ United States 500,000 525,256
Jarden Corp., senior sub. note, 7.50%, 5/01/17 .......................... United States 1,700,000 1,687,250
Jostens IH Corp., senior sub. note, 7.625%, 10/01/12 .................... United States 1,300,000 1,300,000
KB Home, senior note, 6.375%, 8/15/11 ................................... United States 4,000,000 3,820,000
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14,254,712
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CONSUMER NON-DURABLES 1.4%
Reynolds American Inc., senior secured note, 7.25%, 6/01/13 ............. United States 2,000,000 2,085,990
Smithfield Foods Inc., senior note, 8.00%, 10/15/09 ..................... United States 3,000,000 3,105,000
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5,190,990
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CONSUMER SERVICES 8.5%
CanWest Media Inc., senior sub. note, 8.00%, 9/15/12 .................... Canada 3,000,000 2,992,500
CCH II LLC, senior note, 10.25%, 9/15/10 ................................ United States 4,000,000 4,200,000
Clear Channel Communications Inc., senior note, 7.65%, 9/15/10 .......... United States 2,000,000 2,090,368
CSC Holdings Inc., senior note, 8.125%, 7/15/09 ......................... United States 2,000,000 2,045,000
DIRECTV Holdings LLC, senior note, 8.375%, 3/15/13 ...................... United States 2,000,000 2,102,500
Liberty Media Corp., senior note, 7.875%, 7/15/09 ....................... United States 2,000,000 2,084,596
LIN Television Corp., senior sub. note, 6.50%, 5/15/13 .................. United States 3,000,000 2,947,500
MGM MIRAGE, senior note, 6.75%, 4/01/13 ................................. United States 3,000,000 2,865,000
c Outback Steakhouse Inc., senior note, 144A, 10.00%, 6/15/15 ............. United States 1,300,000 1,248,000
Pinnacle Entertainment Inc., senior sub. note, 8.75%, 10/01/13 .......... United States 3,000,000 3,150,000
Quarterly Statement of Investments | 3
Franklin Templeton
Limited Duration Income Trust
STATEMENT OF INVESTMENTS, JUNE 30, 2007 (UNAUDITED) (CONTINUED)
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COUNTRY PRINCIPAL AMOUNT a VALUE
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LONG TERM INVESTMENTS (CONTINUED)
CORPORATE BONDS (CONTINUED)
CONSUMER SERVICES (CONTINUED)
Quebecor Media Inc., senior note, 7.75%, 3/15/16 ........................ Canada 1,700,000 $ 1,734,000
c Rainbow National Services LLC, senior sub. deb., 144A, 10.375%,
9/01/14 ............................................................... United States 1,000,000 1,102,500
Royal Caribbean Cruises Ltd., senior note, 8.00%, 5/15/10 ............... United States 3,000,000 3,159,834
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31,721,798
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ELECTRONIC TECHNOLOGY 2.6%
b,c Freescale Semiconductor Inc., senior note, 144A, FRN, 9.235%,
12/15/14 .............................................................. United States 3,000,000 2,910,000
NXP BV/NXP Funding LLC, senior secured note, 7.875%,
10/15/14 .............................................................. Netherlands 2,000,000 1,980,000
Sanmina-SCI Corp.,
b,c senior note, 144A, FRN, 8.11%, 6/15/14 ............................... United States 1,300,000 1,306,500
senior sub. note, 6.75%, 3/01/13 ..................................... United States 1,700,000 1,555,500
c TransDigm Inc., senior sub. note, 144A, 7.75%, 7/15/14 .................. United States 2,000,000 2,030,000
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9,782,000
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ENERGY MINERALS 2.5%
Chesapeake Energy Corp., senior note, 7.50%, 6/15/14 .................... United States 4,000,000 4,070,000
Mariner Energy Inc., senior note, 7.50%, 4/15/13 ........................ United States 2,000,000 1,970,000
c Petroplus Finance Ltd., senior note, 144A, 6.75%, 5/01/14 ............... Switzerland 2,000,000 1,935,000
Pogo Producing Co., senior sub. note, 7.875%, 5/01/13 ................... United States 1,200,000 1,230,000
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9,205,000
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FINANCE 1.9%
GMAC LLC,
7.25%, 3/02/11 ....................................................... United States 2,000,000 1,995,020
6.875%, 8/28/12 ...................................................... United States 3,000,000 2,935,089
United Rentals North America Inc., senior sub. note, 7.75%,
11/15/13 .............................................................. United States 2,000,000 2,012,500
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6,942,609
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HEALTH SERVICES 5.9%
Coventry Health Care Inc., senior note, 5.875%, 1/15/12 ................. United States 3,000,000 3,010,554
DaVita Inc.,
senior note, 6.625%, 3/15/13 ......................................... United States 1,900,000 1,864,375
senior sub. note, 7.25%, 3/15/15 ..................................... United States 1,000,000 992,500
Fresenius Medical Care Capital Trust II, 7.875%, 2/01/08 ................ Germany 2,000,000 2,015,000
c,d FMC Finance III SA, senior note, 144A, 6.875%, 7/15/17 .................. Germany 1,000,000 985,000
c HCA Inc., senior secured note, 144A, 9.125%, 11/15/14 ................... United States 3,000,000 3,161,250
Tenet Healthcare Corp., senior note, 6.375%, 12/01/11 ................... United States 3,500,000 3,215,625
b,c U.S. Oncology Holdings Inc., senior note, 144A, FRN, 9.797%,
3/15/12 ............................................................... United States 2,000,000 1,975,000
c United Surgical Partners International Inc., senior sub. note, 144A,
PIK, 9.25%, 5/01/17 ................................................... United States 1,100,000 1,108,250
Vanguard Health Holding Co. II LLC, senior sub. note, 9.00%,
10/01/14 .............................................................. United States 4,000,000 3,980,000
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22,307,554
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4 | Quarterly Statement of Investments
Franklin Templeton
Limited Duration Income Trust
STATEMENT OF INVESTMENTS, JUNE 30, 2007 (UNAUDITED) (CONTINUED)
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COUNTRY PRINCIPAL AMOUNT a VALUE
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LONG TERM INVESTMENTS (CONTINUED)
CORPORATE BONDS (CONTINUED)
INDUSTRIAL SERVICES 1.3%
Compagnie Generale de Geophysique-Veritas, senior note, 7.50%,
5/15/15 ............................................................... France 1,000,000 $ 1,005,000
El Paso Corp., senior note, 6.875%, 6/15/14 ............................. United States 1,900,000 1,899,996
Williams Co. Inc., 8.125%, 3/15/12 ...................................... United States 2,000,000 2,132,500
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5,037,496
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NON-ENERGY MINERALS 0.8%
b Freeport-McMoRan Copper & Gold Inc., senior note, FRN, 8.564%,
4/01/15 ............................................................... United States 3,000,000 3,150,000
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PROCESS INDUSTRIES 5.5%
Buckeye Technologies Inc., senior sub. note, 8.00%, 10/15/10 ............ United States 2,000,000 2,010,000
Crown Americas Inc., senior note, 7.625%, 11/15/13 ...................... United States 3,000,000 3,045,000
Huntsman International LLC, senior sub. note, 7.875%, 11/15/14 .......... United States 2,000,000 2,152,500
c Ineos Group Holdings PLC, 144A, 8.50%, 2/15/16 .......................... United Kingdom 2,800,000 2,751,000
JSG Funding PLC, senior sub. note, 7.75%, 4/01/15 ....................... Ireland 3,000,000 3,018,750
Lyondell Chemical Co., senior note,
8.00%, 9/15/14 ....................................................... United States 2,000,000 2,065,000
6.875%, 6/15/17 ...................................................... United States 800,000 776,000
c MacDermid Inc., senior sub. note, 144A, 9.50%, 4/15/17 .................. United States 700,000 707,000
Nalco Co.,
senior note, 7.75%, 11/15/11 ......................................... United States 2,000,000 2,025,000
senior sub. note, 8.875%, 11/15/13 ................................... United States 2,000,000 2,085,000
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20,635,250
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PRODUCER MANUFACTURING 1.4%
Case New Holland Inc., senior note, 9.25%, 8/01/11 ...................... United States 3,000,000 3,159,600
RBS Global & Rexnord Corp., senior note, 9.50%, 8/01/14 ................. United States 2,000,000 2,060,000
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5,219,600
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REAL ESTATE INVESTMENT TRUST 0.8%
Host Marriott LP, senior note, K, 7.125%, 11/01/13 ...................... United States 3,000,000 3,011,250
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RETAIL TRADE 0.5%
c Michaels Stores Inc., senior note, 144A, 10.00%, 11/01/14 ............... United States 2,000,000 2,060,000
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TECHNOLOGY SERVICES 1.1%
SunGard Data Systems Inc., senior note, 9.125%, 8/15/13 ................. United States 4,000,000 4,115,000
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UTILITIES 1.8%
Aquila Inc., senior note, 9.95%, 2/01/11 ................................ United States 2,000,000 2,166,884
c Dynegy Holdings Inc., senior note, 144A, 7.50%, 6/01/15 ................. United States 2,000,000 1,892,500
NRG Energy Inc., senior note, 7.25%, 2/01/14 ............................ United States 2,800,000 2,814,000
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6,873,384
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TOTAL CORPORATE BONDS (COST $176,721,680) ............................... 178,188,893
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MORTGAGE-BACKED SECURITIES 41.1%
b FEDERAL HOME LOAN MORTGAGE CORP. (FHLMC) ADJUSTABLE RATE 0.4%
FHLMC, 5.223%, 5/01/34 .................................................. United States 1,514,867 1,519,679
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Quarterly Statement OF Investments | 5
Franklin Templeton
Limited Duration Income Trust
STATEMENT OF INVESTMENTS, JUNE 30, 2007 (UNAUDITED) (CONTINUED)
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COUNTRY PRINCIPAL AMOUNT a VALUE
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LONG TERM INVESTMENTS (CONTINUED)
MORTGAGE-BACKED SECURITIES (CONTINUED)
FEDERAL HOME LOAN MORTGAGE CORP. (FHLMC) FIXED RATE 16.1%
FHLMC Gold 15 Year, 4.50%, 6/01/18 - 9/01/18 ............................ United States 2,909,008 $ 2,772,859
FHLMC Gold 15 Year, 5.00%, 9/01/18 ...................................... United States 3,960,828 3,842,457
FHLMC Gold 15 Year, 5.00%, 11/01/18 ..................................... United States 2,218,941 2,152,627
FHLMC Gold 15 Year, 5.50%, 7/01/19 ...................................... United States 295,119 291,334
FHLMC Gold 15 Year, 6.00%, 7/01/18 ...................................... United States 1,500,000 1,506,093
FHLMC Gold 30 Year, 5.50%, 8/01/33 ...................................... United States 5,015,884 4,860,876
FHLMC Gold 30 Year, 5.50%, 12/01/34 - 4/01/37 ........................... United States 4,775,516 4,615,211
FHLMC Gold 30 Year, 5.50%, 2/01/37 ...................................... United States 3,926,751 3,787,311
FHLMC Gold 30 Year, 5.50%, 5/01/37 ...................................... United States 5,994,396 5,781,532
FHLMC Gold 30 Year, 6.00%, 7/01/28 - 4/01/35 ............................ United States 8,273,707 8,233,616
FHLMC Gold 30 Year, 6.00%, 7/01/36 ...................................... United States 5,803,711 5,754,429
FHLMC Gold 30 Year, 6.00%, 10/01/36 ..................................... United States 9,890,391 9,806,408
FHLMC Gold 30 Year, 6.50%, 1/01/35 ...................................... United States 3,171,159 3,219,708
FHLMC Gold 30 Year, 7.00%, 9/01/27 ...................................... United States 1,017,206 1,051,414
FHLMC Gold 30 Year, 8.00%, 1/01/31 ...................................... United States 197,680 208,356
FHLMC Gold 30 Year, 8.50%, 7/01/31 ...................................... United States 2,326,703 2,495,148
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60,379,379
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b FEDERAL NATIONAL MORTGAGE ASSOCIATION (FNMA) ADJUSTABLE RATE 0.7%
FNMA, 4.599%, 7/01/34 ................................................... United States 2,404,913 2,389,602
FNMA, 5.99%, 6/01/32 .................................................... United States 107,012 107,684
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2,497,286
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FEDERAL NATIONAL MORTGAGE ASSOCIATION (FNMA) FIXED RATE 21.3%
FNMA 15 Year, 5.00%, 10/01/17 ........................................... United States 1,636,191 1,587,065
FNMA 15 Year, 5.50%, 10/01/17 - 1/01/21 ................................. United States 5,734,586 5,662,769
FNMA 15 Year, 5.50%, 1/01/21 ............................................ United States 3,785,283 3,730,058
FNMA 15 Year, 6.00%, 7/01/17 ............................................ United States 6,000,000 6,026,250
FNMA 15 Year, 6.00%, 9/01/21 ............................................ United States 5,069,835 5,093,849
FNMA 15 Year, 6.50%, 7/01/20 ............................................ United States 938,782 948,366
FNMA 15 Year, 7.00%, 9/01/18 ............................................ United States 385,871 401,539
FNMA 30 Year, 5.00%, 3/01/37 ............................................ United States 2,992,733 2,804,160
FNMA 30 Year, 5.50%, 8/01/33 - 1/01/36 .................................. United States 9,759,618 9,443,467
FNMA 30 Year, 5.50%, 9/01/33 ............................................ United States 4,313,999 4,179,798
FNMA 30 Year, 6.00%, 4/01/33 - 7/15/37 .................................. United States 17,921,438 17,765,413
FNMA 30 Year, 6.50%, 8/01/32 - 4/01/37 .................................. United States 11,466,644 11,590,523
FNMA 30 Year, 6.50%, 6/01/36 ............................................ United States 9,395,945 9,487,328
FNMA 30 Year, 8.00%, 10/01/29 ........................................... United States 301,277 317,831
FNMA 30 Year, 8.50%, 8/01/26 ............................................ United States 601,095 643,396
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79,681,812
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GOVERNMENT NATIONAL MORTGAGE ASSOCIATION (GNMA) FIXED RATE 2.6%
GNMA I SF 30 Year, 5.50%, 4/15/33 - 12/15/34 ............................ United States 2,680,813 2,606,709
GNMA I SF 30 Year, 5.50%, 12/15/34 ...................................... United States 4,046,181 3,933,708
GNMA I SF 30 Year, 6.50%, 6/15/31 - 12/15/33 ............................ United States 2,532,957 2,584,541
6 | Quarterly Statement of Investments
Franklin Templeton
Limited Duration Income Trust
STATEMENT OF INVESTMENTS, JUNE 30, 2007 (UNAUDITED) (CONTINUED)
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COUNTRY PRINCIPAL AMOUNT a VALUE
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LONG TERM INVESTMENTS (CONTINUED)
MORTGAGE-BACKED SECURITIES (CONTINUED)
GOVERNMENT NATIONAL MORTGAGE ASSOCIATION (GNMA) FIXED RATE (CONTINUED)
GNMA II SF 30 Year, 7.00%, 1/20/24 - 1/20/29 ............................ United States 260,102 $ 270,448
GNMA II SF 30 Year, 8.00%, 1/20/28 - 2/20/32 ............................ United States 501,208 530,238
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9,925,644
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TOTAL MORTGAGE-BACKED SECURITIES (COST $157,293,526) .................... 154,003,800
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ASSET-BACKED SECURITIES AND COMMERCIAL MORTGAGE-BACKED
SECURITIES 4.1%
FINANCE 4.1%
b Argent Securities Inc., 2003-W5, M4, FRN, 6.658%, 10/25/33 .............. United States 1,545,635 1,585,773
b Chase Funding Mortgage Loan Asset-Backed Certificates, 2004-2, 2A2,
FRN, 5.57%, 2/25/35 ................................................... United States 1,922,951 1,926,399
b Citigroup/Deutsche Bank Commercial Mortgage Trust, 2005-CD1, A3,
FRN, 5.40%, 7/15/44 ................................................... United States 3,000,000 2,945,767
b GSAMP Trust, 2003-AHL, B1, FRN, 9.32%, 10/25/33 ......................... United States 1,591,513 1,606,307
b Merrill Lynch Mortgage Investors Trust, 2003-OPT1, B2, FRN, 8.07%,
7/25/34 ............................................................... United States 331,738 317,500
b Morgan Stanley ABS Capital,
2003-HE3, B1, FRN, 8.62%, 10/25/33 .................................. United States 1,048,541 1,047,150
2003-NC10, B1, FRN, 8.62%, 10/25/33 ................................. United States 675,822 676,264
b Morgan Stanley Dean Witter Capital I, 2003-NC3, B1, FRN, 8.32%,
3/25/33 ............................................................... United States 737,861 739,417
b New Century Home Equity Loan Trust, 2003-2, M3, FRN, 9.02%,
1/25/33 ............................................................... United States 1,943,398 1,628,280
b Option One Mortgage Loan Trust, 2003-6, M5, FRN, 8.62%,
11/25/33 .............................................................. United States 1,232,183 1,170,921
b Residential Asset Securities Corp., 2003-KS10, MII3, FRN, 7.87%,
12/25/33 .............................................................. United States 264,428 261,619
b Specialty Underwriting & Residential Finance, 2003-BC4, B2, FRN,
7.82%, 11/25/34 ....................................................... United States 482,468 482,172
b Structured Asset Investment Loan Trust,
2003-BC2, M3, FRN, 10.195%, 4/25/33 ................................. United States 13,987 13,169
2003-BC13, M4, FRN, 8.07%, 11/25/33 ................................. United States 820,787 827,474
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TOTAL ASSET-BACKED SECURITIES AND COMMERCIAL MORTGAGE-BACKED
SECURITIES (COST $15,523,464) ......................................... 15,228,212
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b SENIOR FLOATING RATE INTERESTS 51.9%
COMMERCIAL SERVICES 6.9%
Acxiom Corp., Term Loan B, 7.07%, 9/14/12 ............................... United States 1,091,000 1,092,244
Affiliated Computer Services Inc.,
Additional Term Loan, 7.32%, 3/20/13 ................................ United States 1,784,250 1,783,144
Term Loan B, 7.32%, 3/20/13 ......................................... United States 492,500 492,195
ARAMARK Corp.,
Synthetic L/C, 5.36%, 1/26/14 ....................................... United States 184,356 184,671
Term Loan B, 7.36%, 1/26/14 ......................................... United States 2,358,381 2,362,413
Quarterly Statement Of Investments | 7
Franklin Templeton
Limited Duration Income Trust
STATEMENT OF INVESTMENTS, JUNE 30, 2007 (UNAUDITED) (CONTINUED)
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COUNTRY PRINCIPAL AMOUNT a VALUE
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LONG TERM INVESTMENTS (CONTINUED)
b SENIOR FLOATING RATE INTERESTS (CONTINUED)
COMMERCIAL SERVICES (CONTINUED)
Cenveo Corp.,
Delayed Draw Term Loan, 7.11%, 6/21/13 .............................. United States 53,397 $ 53,293
Term Loan C, 7.11%, 6/21/13 ......................................... United States 1,601,916 1,598,792
Corporate Express NV, Term Loan D-1 Add-On, 7.11%, 12/23/10 ............. United States 2,487,500 2,485,784
Dealer Computer Services Inc. (Reynolds & Reynolds), First Lien
Term Loan, 7.36%, 10/26/12 ............................................ United States 1,656,152 1,654,447
Dex Media West LLC, Term Loan B2, 6.84% - 6.86%, 3/09/10 ................ United States 2,215,101 2,202,497
Emdeon Business Services LLC, First Lien Term Loan, 7.61%, 11/16/13 ..... United States 2,681,614 2,679,925
IDEARC Inc., Term Loan B, 7.36%, 11/17/14 ............................... United States 3,084,500 3,091,101
Nielsen Finance LLC (VNU Inc.), Term Loan B, 7.607%, 8/09/13 ............ United States 2,977,500 3,001,260
R.H. Donnelley Inc., Term Loan D-2, 9.855%, 6/30/11 ..................... United States 1,434,186 1,435,907
Workflow Management Inc., Term Loan B, 9.855%, 11/30/11 ................. United States 972,662 972,934
Worldspan LP, Term Loan B, 8.606% - 8.61%, 12/07/13 ..................... United States 895,500 892,804
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25,983,411
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COMMUNICATIONS 3.7%
Alaska Communications Systems Holdings Inc.,
2005 Incremental Loan, 7.11%, 2/01/12 ............................... United States 100,000 100,452
Term Loan, 7.11%, 2/01/12 ........................................... United States 4,000,000 4,018,080
Intelsat Corp. (Panamsat), Term Loan B2, 7.349%, 1/03/14 ................ United States 3,920,300 3,951,937
Intelsat Subsidiary Holding Co. Ltd., Term Loan B, 7.349%, 6/30/13 ...... United States 1,889,939 1,884,553
West Corp., Term Loan B-2, 7.695% - 7.763%, 10/24/13 .................... United States 1,890,512 1,898,150
Windstream Corp., Tranche B-1, 6.86%, 7/17/13 ........................... United States 2,100,569 2,108,698
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13,961,870
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CONSUMER DURABLES 2.0%
Jarden Corp., Term Loan B2, 7.11%, 1/24/12 .............................. United States 2,942,287 2,956,204
Stile Acquisition Corp. (Masonite), Canadian Term Loan,
7.35% - 7.355%, 4/05/13 ............................................... Canada 1,248,673 1,211,488
Stile U.S. Acquisition Corp. (Masonite), U.S. Term Loan,
7.35% - 7.355%, 4/05/13 ............................................... United States 1,250,800 1,213,552
Tupperware Corp., Term Loan B, 6.86%, 12/05/12 .......................... United States 2,287,123 2,289,890
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7,671,134
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CONSUMER NON-DURABLES 3.3%
Acco Brands Corp., Term Loan B, 7.11%, 8/17/12 .......................... United States 902,180 897,534
Bumble Bee Foods LLC, Term Loan B, 7.106%, 5/02/12 ...................... United States 500,000 498,325
CBRL Group (Cracker Barrel),
Term Loan B1, 6.86%, 4/27/13 ........................................ United States 855,720 855,625
Term Loan B2 (Delayed Draw), 6.84%, 4/27/13 ......................... United States 67,138 67,131
Central Garden & Pet Co., Term Loan B, 6.82%, 9/30/12 ................... United States 269,923 269,766
Constellation Brands Inc., Term Loan B, 6.875%, 6/05/13 ................. United States 1,333,333 1,337,107
Dean Foods Co., Term Loan B, 6.86%, 4/02/14 ............................. United States 2,094,750 2,088,864
d Del Monte Foods Co., Term Loan B, 6.82% - 6.855%, 2/08/12 ............... United States 1,324,057 1,326,506
8 | Quarterly Statement of Investments
Franklin Templeton
Limited Duration Income Trust
STATEMENT OF INVESTMENTS, JUNE 30, 2007 (UNAUDITED) (CONTINUED)
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COUNTRY PRINCIPAL AMOUNT a VALUE
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LONG TERM INVESTMENTS (CONTINUED)
b SENIOR FLOATING RATE INTERESTS (CONTINUED)
CONSUMER NON-DURABLES (CONTINUED)
Herbalife International Inc., Term Loan B, 6.82%, 7/21/13 ............... United States 596,497 $ 595,764
Michael Foods Inc., Term Loan B1, 7.361%, 11/21/10 ...................... United States 1,764,740 1,770,298
d OSI Restaurant Partners LLC (Outback),
Prefunded Revolving Credit, 9.50%, 6/14/13 .......................... United States 83,438 83,271
Term Loan B, 9.50%, 6/14/14 ......................................... United States 1,093,033 1,090,574
Southern Wine & Spirits of America Inc., Term Loan B, 6.86%, 5/31/12 .... United States 1,609,011 1,612,808
---------------
12,493,573
---------------
CONSUMER SERVICES 13.1%
Arby's Restaurant Holdings LLC, Term Loan B, 7.605% - 7.61%,
7/25/12 ............................................................... United States 1,571,048 1,579,406
Charter Communications Operating LLC,
New First Lien Term Loan, 7.36%, 3/06/14 ............................ United States 1,000,000 990,880
Refinance First Lien Term Loan, 7.36%, 3/06/14 ...................... United States 1,362,560 1,350,133
Cinram International, Term Loan B, 7.355%, 5/05/11 ...................... Canada 1,683,055 1,675,582
Citadel Broadcasting Corp., Term Loan B, 6.945%, 6/12/14 ................ United States 2,000,000 1,994,480
CSC Holdings Inc. (Cablevision), Incremental Term Loan, 7.07%, 3/29/13 .. United States 792,000 794,471
DIRECTV Holdings LLC, Term Loan B, 6.82%, 4/13/13 ....................... United States 1,119,060 1,122,607
Education Management LLC, Term Loan C, 7.125%, 6/01/13 .................. United States 1,687,250 1,678,443
Entravision Communications Corp., Term Loan B, 6.85%, 3/29/13 ........... United States 1,983,500 1,990,621
Gatehouse Media Operating Inc.,
Delayed Draw Term Loan, 7.35% - 7.36%, 8/28/14 ...................... United States 489,130 487,712
Term Loan, 7.36%, 8/28/14 ........................................... United States 1,310,870 1,307,068
Gray Television Inc., Term Loan B, 6.82% - 6.86%, 12/31/14 .............. United States 800,000 800,440
Insight Midwest Holdings, Term Loan B, 7.35%, 4/02/14 ................... United States 3,200,000 3,206,112
MCC Iowa,
Term Loan D-1, 7.07% - 7.11%, 1/31/15 ............................... United States 2,522,609 2,528,235
Term Loan D-2 (Delayed Draw), 7.07%, 1/31/15 ........................ United States 58,705 58,836
MediaNews Group Inc., Term Loan B, 6.57%, 12/30/10 ...................... United States 2,249,100 2,224,967
Mission Broadcasting Inc., Term Loan B, 7.11%, 10/01/12 ................. United States 1,672,879 1,672,980
Nexstar Broadcasting Inc., Term Loan B, 7.11%, 10/01/12 ................. United States 1,584,598 1,584,693
Penn National Gaming Inc., Term Loan B, 7.11%, 10/03/12 ................. United States 1,768,500 1,768,412
Regal Cinemas Corp., Term Loan, 6.86%, 10/27/13 ......................... United States 3,827,484 3,838,545
Tribune Co., Term Loan B, 8.32%, 5/16/14 ................................ United States 4,000,000 3,899,800
Univision Communications Inc., Term Loan B, 7.605%, 9/29/14 ............. United States 1,879,195 1,852,660
UPC Financing Partnership, Term Loan N, 7.08%, 12/31/14 ................. Netherlands 4,000,000 4,009,200
VML U.S. Finance LLC (Venetian Macau),
Delay Draw, 7.61%, 5/25/12 .......................................... Macau 1,166,667 1,171,532
New Project Term Loans, 7.61%, 5/25/13 .............................. Macau 700,000 703,549
Term Loan B, 7.61%, 5/24/13 ......................................... Macau 1,333,333 1,339,880
WMG Acquisition Corp. (Warner Music), Term Loan B, 7.35% - 7.36%,
2/28/11 ............................................................... United States 3,333,651 3,346,952
---------------
48,978,196
---------------
Quarterly Statement of Investments | 9
Franklin Templeton
Limited Duration Income Trust
STATEMENT OF INVESTMENTS, JUNE 30, 2007 (UNAUDITED) (CONTINUED)
------------------------------------------------------------------------------------------------------------------------------------
COUNTRY PRINCIPAL AMOUNT a VALUE
------------------------------------------------------------------------------------------------------------------------------------
LONG TERM INVESTMENTS (CONTINUED)
b SENIOR FLOATING RATE INTERESTS (CONTINUED)
ELECTRONIC TECHNOLOGY 1.5%
Advanced Micro Devices Inc., Term Loan B, 7.36%, 12/31/13 ............... United States 1,558,070 $ 1,556,481
Marvell Technology Group Ltd., Term Loan, 7.34%, 11/09/09 ............... Bermuda 3,174,000 3,174,254
Spirit Aerosystems Inc. (Onex Wind Finance LP), Term Loan B,
7.105%, 12/31/11 ..................................................... United States 713,615 717,647
---------------
5,448,382
---------------
ENERGY MINERALS 0.5%
Citgo Petroleum Corp., Term Loan B, 6.73%, 11/15/12 ..................... United States 927,119 929,289
Western Refining Inc., Initial Advance Commitment, 7.07%,
5/31/12 .............................................................. United States 1,044,643 1,045,593
---------------
1,974,882
---------------
FINANCE 1.9%
Avis Budget Car Rental LLC, Term Loan, 6.61%, 4/19/12 ................... United States 914,286 912,686
Conseco Inc.,
Incremental Term Loan, 7.32%, 10/10/13 ............................. United States 500,000 500,915
Term Loan, 7.32%, 10/10/13 ......................................... United States 397,000 397,723
Hertz Corp.,
Credit Link, 5.36%, 12/21/12 ....................................... United States 155,556 156,308
Term Loan B, 7.09% - 7.11%, 12/21/12 ............................... United States 868,933 873,139
Nasdaq Stock Market Inc.,
Incremental Term Loan B, 7.07%, 4/18/12 ............................ United States 694,750 694,090
Term Loan B, 7.07%, 4/18/12 ........................................ United States 1,211,047 1,209,933
Term Loan C (Delayed Draw), 7.07%, 4/18/12 ......................... United States 702,016 701,370
TD Ameritrade Holding Corp., Term Loan B, 6.82%, 12/31/12 ............... United States 1,611,114 1,610,372
---------------
7,056,536
---------------
HEALTH SERVICES 4.3%
d Community Health Systems Inc.,
Delay Draw, 9.50%, 4/30/14 ......................................... United States 167,053 167,219
Term Loan, 9.50%, 4/30/14 .......................................... United States 2,532,947 2,535,454
DaVita Inc., Term Loan B-1, 6.85% - 6.88%, 10/05/12 ..................... United States 2,717,434 2,721,809
Fresenius Medical Care Holdings Inc., Term Loan B, 6.73% - 6.735%,
3/31/13 .............................................................. United States 2,468,750 2,465,491
HCA Inc., Term Loan B-1, 7.61%, 11/18/13 ................................ United States 2,985,000 2,998,074
Health Management Associates Inc., Term Loan B, 7.11%,
2/28/14 .............................................................. United States 3,790,500 3,790,045
LifePoint Hospitals Inc., Term Loan B, 6.985%, 4/15/12 .................. United States 1,607,793 1,602,728
---------------
16,280,820
---------------
HEALTH TECHNOLOGY 0.2%
ONEX Carestream Finance LP, Term Loan, 7.34%, 4/30/13 ................... United States 600,000 600,192
---------------
INDUSTRIAL SERVICES 0.6%
Allied Waste North America Inc.,
Credit Link, 5.32%, 3/28/14 ........................................ United States 764,558 768,335
Term Loan B, 7.06% - 7.15%, 1/15/12 ................................ United States 1,406,904 1,413,854
---------------
2,182,189
---------------
10 | Quarterly Statement of Investments
Franklin Templeton
Limited Duration Income Trust
STATEMENT OF INVESTMENTS, JUNE 30, 2007 (UNAUDITED) (CONTINUED)
------------------------------------------------------------------------------------------------------------------------------------
COUNTRY PRINCIPAL AMOUNT a VALUE
------------------------------------------------------------------------------------------------------------------------------------
LONG TERM INVESTMENTS (CONTINUED)
b SENIOR FLOATING RATE INTERESTS (CONTINUED)
NON-ENERGY MINERALS 0.3%
Freeport-McMoRan Copper & Gold Inc., Term Loan B, 9.00%,
3/19/14 ............................................................... United States 1,176,000 $ 1,171,484
---------------
PROCESS INDUSTRIES 5.5%
Berry Plastics Holding Corp., Term Loan C, 7.355%, 4/03/15 .............. United States 1,002,438 998,769
Domtar Corp., Term Loan, 6.735%, 3/07/14 ................................ United States 990,000 989,079
Georgia-Pacific Corp.,
Additional Term Loan, 7.11%, 12/20/12 ............................... United States 690,972 690,033
Term Loan B, 7.11%, 12/20/12 ........................................ United States 2,462,500 2,460,259
Graham Packaging Co., New Term Loan, 7.625%, 10/07/11 ................... United States 2,033,289 2,042,459
Hexion Specialty Chemicals BV, Term Loan C-2, 7.625%, 5/03/13 ........... Netherlands 619,417 620,191
Hexion Specialty Chemicals Inc., Term Loan C-1, 7.625%,
5/03/13 ............................................................... United States 2,858,655 2,862,228
Huntsman International, Term Loan B, 7.07%, 4/19/14 ..................... United States 2,887,039 2,885,249
Ineos U.S. Finance LLC,
Term Loan B2, 7.58%, 12/16/13 ....................................... United States 396,000 398,606
Term Loan C2, 8.08%, 12/23/14 ....................................... United States 396,000 398,396
Lyondell Chemical Co., Term Loan, 6.856%, 8/16/13 ....................... United States 2,679,750 2,679,428
Nalco Co., Term Loan B, 7.07% - 9.00%, 11/04/10 ......................... United States 1,343,428 1,350,199
NewPage Corp., Term Loan, 7.625%, 5/02/11 ............................... United States 2,065,867 2,083,530
---------------
20,458,426
---------------
PRODUCER MANUFACTURING 4.0%
Cooper Standard Automotive Inc., Term Loan D, 7.875%,
12/23/11 .............................................................. United States 886,500 884,186
Dresser Inc., Term Loan B, 7.86%, 5/04/14 ............................... United States 1,000,000 1,006,140
GPS CCMP Merger Corp. (Generac), Term Loan B, 7.86%,
11/09/13 .............................................................. United States 2,115,333 2,096,316
Headwaters Inc., Term Loan B, 7.36%, 4/30/11 ............................ United States 520,428 519,158
Nortek Inc., Term Loan, 7.61%, 8/27/11 .................................. United States 1,451,157 1,450,068
Oshkosh Truck Corp.,
Term Loan A, 6.61%, 12/06/11 ........................................ United States 950,000 951,093
Term Loan B, 7.11%, 12/06/13 ........................................ United States 2,885,500 2,891,127
Sensus Metering Systems Inc.,
Term Loan B1, 7.358% - 7.387%, 12/17/10 ............................. United States 2,212,955 2,208,241
Term Loan B2, 7.358% - 7.387%, 12/17/10 ............................. Luxembourg 208,108 207,665
TriMas Co. LLC,
Term Loan B, 8.125%, 8/02/13 ........................................ United States 1,604,798 1,610,703
Tranche B-1 L/C, 8.07%, 8/02/13 ..................................... United States 373,136 374,245
TRW Automotive Inc., Tranche B-1 Term Loan, 6.875%, 2/09/14 ............. United States 922,339 924,682
---------------
15,123,624
---------------
REAL ESTATE INVESTMENT TRUST 0.8%
CB Richard Ellis Services Inc., Term Loan B, 6.82%, 12/20/13 ............ United States 2,885,500 2,876,468
---------------
Quarterly Statement of Investments | 11
Franklin Templeton
Limited Duration Income Trust
STATEMENT OF INVESTMENTS, JUNE 30, 2007 (UNAUDITED) (CONTINUED)
------------------------------------------------------------------------------------------------------------------------------------
COUNTRY PRINCIPAL AMOUNT a VALUE
------------------------------------------------------------------------------------------------------------------------------------
LONG TERM INVESTMENTS (CONTINUED)
b SENIOR FLOATING RATE INTERESTS (CONTINUED)
RETAIL TRADE 0.5%
Neiman Marcus Group Inc., Term Loan, 7.07% - 7.11%, 4/06/13 ............. United States 1,032,911 $ 1,036,547
The William Carter Co., Term Loan B, 6.82% - 6.855%, 7/14/12 ............ United States 686,561 686,273
---------------
1,722,820
---------------
TECHNOLOGY SERVICES 0.9%
SunGard Data Systems Inc., New U.S. Term Loan, 7.356%,
2/28/14 ............................................................... United States 3,343,341 3,349,827
---------------
UTILITIES 1.9%
Dynegy Holdings Inc., Term L/C Facility, 6.82%, 4/02/13 ................. United States 2,000,000 1,995,020
Kinder Morgan Inc., Term Loan B, 6.82%, 5/30/14 ......................... United States 2,400,000 2,395,872
NRG Energy Inc.,
Credit Link, 7.07%, 2/01/13 ......................................... United States 819,782 820,454
Term Loan, 7.11%, 2/01/13 ........................................... United States 1,974,667 1,976,287
---------------
7,187,633
---------------
TOTAL SENIOR FLOATING RATE INTERESTS (COST $194,637,266) ................ 194,521,467
---------------
FOREIGN GOVERNMENT AND AGENCY SECURITIES 4.5%
b,e Government of Argentina, FRN, 5.475%, 8/03/12 ........................... Argentina 3,950,000 2,818,819
Government of Malaysia,
8.60%, 12/01/07 ..................................................... Malaysia 8,000,000 MYR 2,367,579
6.45%, 7/01/08 ...................................................... Malaysia 1,400,000 MYR 418,038
7.00%, 3/15/09 ...................................................... Malaysia 1,500,000 MYR 460,883
Government of Poland, 6.00%, 5/24/09 .................................... Poland 5,645,000 PLN 2,055,317
Government of Singapore, 5.625%, 7/01/08 ................................ Singapore 2,150,000 SGD 1,448,961
Government of Sweden,
8.00%, 8/15/07 ...................................................... Sweden 8,300,000 SEK 1,219,174
6.50%, 5/05/08 ...................................................... Sweden 15,600,000 SEK 2,328,769
Korea Treasury Note, 4.75%, 3/12/08 ..................................... South Korea 3,600,000,000 KRW 3,881,707
---------------
TOTAL FOREIGN GOVERNMENT AND AGENCY SECURITIES
(COST $16,358,655) .................................................... 16,999,247
---------------
TOTAL LONG TERM INVESTMENTS (COST $560,534,591) ......................... 558,941,619
---------------
SHORT TERM INVESTMENTS 3.4%
GOVERNMENT BONDS 0.9%
d,f Egypt Treasury Bills, 7/31/07 - 7/01/08 ................................. Egypt 9,250,000 EGP 1,585,016
f Malaysia Treasury Bill, 6/06/08 ......................................... Malaysia 800,000 MYR 224,365
f Norway Treasury Bills, 9/19/07 - 12/19/07 ............................... Norway 9,910,000 NOK 1,650,139
---------------
3,459,520
---------------
TOTAL INVESTMENTS BEFORE MONEY MARKET FUND
(COST $563,842,252) ................................................... 562,401,139
---------------
12 | Quarterly Statement of Investments
Franklin Templeton
Limited Duration Income Trust
STATEMENT OF INVESTMENTS, JUNE 30, 2007 (UNAUDITED) (CONTINUED)
------------------------------------------------------------------------------------------------------------------------------------
COUNTRY SHARES VALUE
------------------------------------------------------------------------------------------------------------------------------------
SHORT TERM INVESTMENTS (CONTINUED)
MONEY MARKET FUND 2.5%
g Franklin Institutional Fiduciary Trust Money Market Portfolio,
4.99% ................................................................ United States 9,272,395 $ 9,272,395
---------------
TOTAL SHORT TERM INVESTMENTS (COST $12,580,057) ......................... 12,731,915
---------------
TOTAL INVESTMENTS (COST $573,114,648) 152.5% ............................ 571,673,534
PREFERRED SHARES (50.7)% ................................................ (190,000,000)
OTHER ASSETS, LESS LIABILITIES (1.8)% ................................... (6,741,488)
---------------
NET ASSETS APPLICABLE TO COMMON SHARES 100.0% ........................... $ 374,932,046
===============
CURRENCY ABBREVIATIONS
EGP - Egyptian Pounds
KRW - South Korean Won
MYR - Malaysian Ringgit
NOK - Norwegian Krone
PLN - Polish Zloty
SEK - Swedish Krona
SGD - Singapore Dollar
SELECTED PORTFOLIO ABBREVIATIONS
FHLMC - Federal Home Loan Mortgage Corp.
FNMA - Federal National Mortgage Association
FRN - Floating Rate Note
GNMA - Government National Mortgage Association
L/C - Letter of Credit
PIK - Payment-In-Kind
REIT - Real Estate Investment Trust
SF - Single Family
a The principal amount is stated in U.S. dollars unless otherwise indicated.
b The coupon rate shown represents the rate at period end.
c 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 June 30, 2007, the aggregate value of these
securities was $35,414,250, representing 9.45% of net assets.
d Security purchased on a when-issued or delayed delivery basis.
e The principal amount is stated in original face, and scheduled paydowns are
reflected in the market price on ex-date.
f The security is traded on a discount basis with no stated coupon rate.
g The Franklin Institutional Fiduciary Trust Money Market Portfolio is managed
by the Fund's investment manager. The rate shown is the annualized seven-day
yield at period end.
Quarterly Statement of Investments |
See Notes to Statement of Investments. | 13
Franklin Templeton
Limited Duration Income Trust
NOTES TO STATEMENT OF INVESTMENTS (UNAUDITED)
1. ORGANIZATION
Franklin Templeton Limited Duration Income Trust (the Fund) is registered under
the Investment Company Act of 1940, as amended, as a diversified, closed-end
investment company.
2. SECURITY VALUATION
Securities listed on a securities 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. Over-the-counter securities and listed securities for
which there is no reported sale 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. Investments in open-end mutual funds are valued at the closing net asset
value. Short term investments are valued at cost.
Corporate debt securities, government securities, mortgage pass-through
securities, other mortgage-backed securities, and asset-backed securities
generally trade in the over-the-counter market rather than on a securities
exchange. The Fund may utilize independent pricing services, quotations from
bond dealers, and information with respect to bond and note transactions, to
assist in determining a current market value for each security. The Fund's
pricing services may use valuation models or matrix pricing which considers
information with respect to comparable bond and note transactions, quotations
from bond dealers, or by reference to other securities that are considered
comparable in such characteristics as rating, interest rate and maturity date,
option adjusted spread models, prepayment projections, interest rate spreads and
yield curves, to determine current value.
Senior secured corporate loans with floating or variable interest rates
generally trade in the over-the-counter market rather than on a securities
exchange. The Fund may utilize independent pricing services, quotations from
loan dealers and other financial institutions, and information with respect to
bond and note transactions, to assist in determining a current market value for
each security. The Fund's pricing services use independent market quotations
from loan dealers or financial institutions and may incorporate valuation
methodologies that consider multiple bond characteristics such as dealer quotes,
issuer type, coupon, maturity, weighted average maturity, interest rate spreads
and yield curves, cash flow and credit risk/quality analysis to determine
current value.
14 | Quarterly Statement of Investments
Franklin Templeton
Limited Duration Income Trust
NOTES TO STATEMENT OF INVESTMENTS (UNAUDITED) (CONTINUED)
2. SECURITY VALUATION (CONTINUED)
The Fund has procedures to determine the fair value of individual securities and
other assets for which market prices are not readily available or which may not
be reliably priced. Methods for valuing these securities may include:
fundamental analysis, matrix pricing, discounts from market prices of similar
securities, or discounts applied due to the nature and duration of restrictions
on the disposition of the securities. Due to the inherent uncertainty of
valuations of such securities, the fair values may differ significantly from the
values that would have been used had a ready market for such investments
existed. Occasionally, events occur between the time at which trading in a
security is completed and the close of the NYSE that might call into question
the availability (including the reliability) of the value of a portfolio
security 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. All security valuation procedures are approved by the Fund's Board of
Trustees.
3. INCOME TAXES
At June 30, 2007, the cost of investments and net unrealized appreciation
(depreciation) for income tax purposes were as follows:
Cost of investments ........................................... $ 574,580,884
==============
Unrealized appreciation ....................................... $ 4,569,486
Unrealized depreciation ....................................... (7,476,836)
--------------
Net unrealized appreciation (depreciation) .................... $ (2,907,350)
==============
For information on the Fund's policy regarding other significant accounting
policies, please refer to the Fund's most recent semiannual or annual
shareholder report.
Quarterly Statement of Investments | 15
Item 2. Controls and Procedures.
(a) EVALUATION OF DISCLOSURE CONTROLS AND PROCEDURES. The Registrant maintains
disclosure controls and procedures that are designed to ensure that information
required to be disclosed in the Registrant's filings under the Securities
Exchange Act of 1934 and the Investment Company Act of 1940 is recorded,
processed, summarized and reported within the periods specified in the rules and
forms of the Securities and Exchange Commission. Such information is accumulated
and communicated to the Registrant's management, including its principal
executive officer and principal financial officer, as appropriate, to allow
timely decisions regarding required disclosure. The Registrant's management,
including the principal executive officer and the principal financial officer,
recognizes that any set of controls and procedures, no matter how well designed
and operated, can provide only reasonable assurance of achieving the desired
control objectives.
Within 90 days prior to the filing date of this Quarterly Schedule of Portfolio
Holdings on Form N-Q, the Registrant had carried out an evaluation, under the
supervision and with the participation of the Registrant's management, including
the Registrant's principal executive officer and the Registrant's principal
financial officer, of the effectiveness of the design and operation of the
Registrant's disclosure controls and procedures. Based on such evaluation, the
Registrant's principal executive officer and principal financial officer
concluded that the Registrant's disclosure controls and procedures are
effective.
(b) CHANGES IN INTERNAL CONTROLS. There have been no significant changes in the
Registrant's internal controls or in other factors that could significantly
affect the internal controls subsequent to the date of their evaluation in
connection with the preparation of this Quarterly Schedule of Portfolio Holdings
on Form N-Q.
Item 3. Exhibits.
(A) Certification pursuant to Section 30a-2 under the Investment Company Act of
1940 of Jimmy D. Gambill, Chief Executive Officer - Finance and Administration,
and Galen G. Vetter, Chief Financial Officer.
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934 and the
Investment Company Act of 1940, the registrant has duly caused this report to be
signed on its behalf by the undersigned, thereunto duly authorized.
FRANKLIN TEMPLETON LIMITED DURATION INCOME TRUST
By /S/JIMMY D. GAMBILL
-------------------
Jimmy D. Gambill
Chief Executive Officer - Finance and Administration
Date August 27, 2007
Pursuant to the requirements of the Securities Exchange Act of 1934 and the
Investment Company Act of 1940, this report has been signed below by the
following persons on behalf of the registrant and in the capacities and on the
dates indicated.
By /S/JIMMY D. GAMBILL
-------------------
Jimmy D. Gambill
Chief Executive Officer - Finance and Administration
Date August 27, 2007
By /S/GALEN G. VETTER
------------------
Galen G. Vetter
Chief Financial Officer
Date August 27, 2007
Exhibit A
I, Jimmy D. Gambill, certify that:
1. I have reviewed this report on Form N-Q of FRANKLIN TEMPLETON LIMITED
DURATION INCOME TRUST;
2. Based on my knowledge, this report does not contain any untrue statement
of a material fact or omit to state a material fact necessary to make the
statements made, in light of the circumstances under which such statements were
made, not misleading with respect to the period covered by this report;
3. Based on my knowledge, the schedules of investments included in this
report fairly present in all material respects the investments of the registrant
as of the end of the fiscal quarter for which the report is filed;
4. The registrant's other certifying officer(s) and I are responsible for
establishing and maintaining disclosure controls and procedures (as defined in
Rule 30a-3(c) under the Investment Company Act of 1940) and internal control
over financial reporting (as defined in Rule 30a-3(d) under the Investment
Company Act of 1940) for the registrant and have:
(a) Designed such disclosure controls and procedures, or caused such
disclosure controls and procedures to be designed under our supervision, to
ensure that material information relating to the registrant, including its
consolidated subsidiaries, is made known to us by others within those entities,
particularly during the period in which this report is being prepared;
(b) Designed such internal control over financial reporting, or caused such
internal control over financial reporting to be designed under our supervision,
to provide reasonable assurance regarding the reliability of financial reporting
and the preparation of financial statements for external purposes in accordance
with generally accepted accounting principles;
(c) Evaluated the effectiveness of the registrant's disclosure controls and
procedures and presented in this report our conclusions about the effectiveness
of the disclosure controls and procedures, as of a date within 90 days prior to
the filing date of this report, based on such evaluation; and
(d) Disclosed in this report any change in the registrant's internal
control over financial reporting that occurred during the registrant's most
recent fiscal quarter that has materially affected, or is reasonably likely to
materially affect, the registrant's internal control over financial reporting;
and
5. The registrant's other certifying officer(s) and I have disclosed to the
registrant's auditors and the audit committee of the registrant's board of
directors (or persons performing the equivalent functions):
(a) All significant deficiencies and material weaknesses in the design or
operation of internal control over financial reporting which are reasonably
likely to adversely affect the registrant's ability to record, process,
summarize, and report financial information; and
(b) Any fraud, whether or not material, that involves management or other
employees who have a significant role in the registrant's internal control over
financial reporting.
August 27, 2007
/s/JIMMY D. GAMBILL
Jimmy D. Gambill
Chief Executive Officer - Finance and Administration
I, Galen G. Vetter, certify that:
1. I have reviewed this report on Form N-Q of FRANKLIN TEMPLETON LIMITED
DURATION INCOME TRUST;
2. Based on my knowledge, this report does not contain any untrue statement
of a material fact or omit to state a material fact necessary to make the
statements made, in light of the circumstances under which such statements were
made, not misleading with respect to the period covered by this report;
3. Based on my knowledge, the schedules of investments included in this
report fairly present in all material respects the investments of the registrant
as of the end of the fiscal quarter for which the report is filed;
4. The registrant's other certifying officer(s) and I are responsible for
establishing and maintaining disclosure controls and procedures (as defined in
Rule 30a-3(c) under the Investment Company Act of 1940) and internal control
over financial reporting (as defined in Rule 30a-3(d) under the Investment
Company Act of 1940) for the registrant and have:
(a) Designed such disclosure controls and procedures, or caused such
disclosure controls and procedures to be designed under our supervision, to
ensure that material information relating to the registrant, including its
consolidated subsidiaries, is made known to us by others within those entities,
particularly during the period in which this report is being prepared;
(b) Designed such internal control over financial reporting, or caused such
internal control over financial reporting to be designed under our supervision,
to provide reasonable assurance regarding the reliability of financial reporting
and the preparation of financial statements for external purposes in accordance
with generally accepted accounting principles;
(c) Evaluated the effectiveness of the registrant's disclosure controls and
procedures and presented in this report our conclusions about the effectiveness
of the disclosure controls and procedures, as of a date within 90 days prior to
the filing date of this report, based on such evaluation; and
(d) Disclosed in this report any change in the registrant's internal
control over financial reporting that occurred during the registrant's most
recent fiscal quarter that has materially affected, or is reasonably likely to
materially affect, the registrant's internal control over financial reporting;
and
5. The registrant's other certifying officer(s) and I have disclosed to the
registrant's auditors and the audit committee of the registrant's board of
directors (or persons performing the equivalent functions):
(a) All significant deficiencies and material weaknesses in the design or
operation of internal control over financial reporting which are reasonably
likely to adversely affect the registrant's ability to record, process,
summarize, and report financial information; and
(b) Any fraud, whether or not material, that involves management or other
employees who have a significant role in the registrant's internal control over
financial reporting.
August 27, 2007
/s/GALEN G. VETTER
Galen G. Vetter
Chief Financial Officer