FORM N-Q
QUARTERLY SCHEDULE OF PORTFOLIO HOLDINGS OF
REGISTERED MANAGEMENT INVESTMENT COMPANY
Investment Company Act file number 811-21357
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: 03/31
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Date of reporting period: 12/31/07
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Item 1. Schedule of Investments.
Franklin Templeton
Limited Duration Income Trust
QUARTERLY STATEMENT OF INVESTMENTS
DECEMBER 31, 2007
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CONTENTS
Statement of Investments ................................................... 3
Notes to Statement of Investments .......................................... 15
[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, DECEMBER 31, 2007 (UNAUDITED)
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COUNTRY PRINCIPAL AMOUNT a VALUE
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LONG TERM INVESTMENTS 148.1%
CORPORATE BONDS 43.8%
COMMERCIAL SERVICES 3.3%
b ARAMARK Corp., senior note, FRN, 8.411%, 2/01/15 ..................... United States 1,800,000 $ 1,764,000
Dex Media West LLC, senior sub. note, 9.875%, 8/15/13 ................ United States 4,000,000 4,170,000
JohnsonDiversey Holdings Inc., senior disc. note, 10.67%, 5/15/13 .... United States 2,000,000 2,030,000
c Lamar Media Corp., senior sub. note, 144A, 6.625%, 8/15/15 ........... United States 2,000,000 1,955,000
RSC Equipment Rental Inc., senior note, 9.50%, 12/01/14 .............. United States 2,000,000 1,800,000
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11,719,000
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COMMUNICATIONS 3.8%
c Digicel Group Ltd., senior note, 144A, 8.875%, 1/15/15 ............... Jamaica 2,000,000 1,835,000
Intelsat Subsidiary Holding Co. Ltd., senior note, 8.25%, 1/15/13 .... Bermuda 3,000,000 3,030,000
MetroPCS Wireless Inc., senior note, 9.25%, 11/01/14 ................. United States 1,500,000 1,417,500
Millicom International Cellular SA, senior note, 10.00%, 12/01/13 .... Luxembourg 2,000,000 2,140,000
Qwest Communications International Inc., senior note, B, 7.50%,
2/15/14 ........................................................... United States 2,000,000 2,005,000
c Wind Acquisition Finance SA, senior note, 144A, 10.75%,
12/01/15 .......................................................... Italy 3,000,000 3,285,000
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13,712,500
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CONSUMER DURABLES 3.1%
Ford Motor Credit Co. LLC,
b FRN, 9.693%, 4/15/12 ........................................... United States 1,000,000 983,665
senior note, 5.80%, 1/12/09 .................................... United States 4,000,000 3,797,684
senior note, 9.875%, 8/10/11 ................................... United States 500,000 473,260
Jarden Corp., senior sub. note, 7.50%, 5/01/17 ....................... United States 2,000,000 1,730,000
Jostens IH Corp., senior sub. note, 7.625%, 10/01/12 ................. United States 1,400,000 1,414,000
KB Home, senior note, 6.375%, 8/15/11 ................................ United States 3,000,000 2,760,000
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11,158,609
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CONSUMER NON-DURABLES 1.2%
Reynolds American Inc., senior secured note, 7.25%, 6/01/13 .......... United States 2,000,000 2,125,468
Smithfield Foods Inc., senior note, 8.00%, 10/15/09 .................. United States 2,000,000 2,030,000
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4,155,468
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CONSUMER SERVICES 7.0%
CanWest Media Inc., senior sub. note, 8.00%, 9/15/12 ................. Canada 3,000,000 2,846,250
CCH II LLC, senior note, 10.25%, 9/15/10 ............................. United States 4,000,000 3,940,000
CSC Holdings Inc., senior note, 8.125%, 7/15/09 ...................... United States 1,000,000 1,018,750
DIRECTV Holdings LLC, senior note, 8.375%, 3/15/13 ................... United States 1,000,000 1,045,000
Liberty Media Corp., senior note, 7.875%, 7/15/09 .................... United States 2,000,000 2,040,480
LIN Television Corp., senior sub. note, 6.50%, 5/15/13 ............... United States 300,000 283,875
MGM MIRAGE, senior note, 6.75%, 4/01/13 .............................. United States 3,000,000 2,925,000
c Outback Steakhouse Inc., senior note, 144A, 10.00%, 6/15/15 .......... United States 1,500,000 1,102,500
Pinnacle Entertainment Inc., senior sub. note, 8.75%, 10/01/13 ....... United States 2,000,000 2,045,000
Quebecor Media Inc.,
c 144A, 7.75%, 3/15/16 ........................................... Canada 500,000 482,500
senior note, 7.75%, 3/15/16 .................................... Canada 2,000,000 1,930,000
Quarterly Statement of Investments | 3
Franklin Templeton
Limited Duration Income Trust
STATEMENT OF INVESTMENTS, DECEMBER 31, 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)
Radio One Inc., senior sub. note, B, 8.875%, 7/01/11 ................. United States 2,000,000 $ 1,877,500
c Rainbow National Services LLC, senior sub. deb., 144A, 10.375%,
9/01/14 ........................................................... United States 665,000 724,019
Royal Caribbean Cruises Ltd., senior note, 8.00%, 5/15/10 ............ United States 3,000,000 3,116,475
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25,377,349
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ELECTRONIC TECHNOLOGY 1.9%
b Freescale Semiconductor Inc., senior note, FRN, 8.866%,
12/15/14 .......................................................... United States 2,000,000 1,710,000
NXP BV/NXP Funding LLC, senior secured note, 7.875%,
10/15/14 .......................................................... Netherlands 500,000 477,500
Sanmina-SCI Corp.,
b,c senior note, 144A, FRN, 7.741%, 6/15/14 ........................ United States 1,300,000 1,259,375
senior sub. note, 6.75%, 3/01/13 ............................... United States 1,700,000 1,487,500
TransDigm Inc., senior sub. note, 7.75%, 7/15/14 ..................... United States 2,000,000 2,040,000
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6,974,375
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ENERGY MINERALS 2.3%
Chesapeake Energy Corp., senior note, 7.50%, 6/15/14 ................. United States 4,000,000 4,090,000
Mariner Energy Inc., senior note, 7.50%, 4/15/13 ..................... United States 2,000,000 1,935,000
c Petroplus Finance Ltd., senior note, 144A, 6.75%, 5/01/14 ............ Switzerland 2,500,000 2,340,625
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8,365,625
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FINANCE 3.8%
CIT Group Funding Co. of Canada, senior note, 4.65%, 7/01/10 ......... United States 1,100,000 1,046,726
CIT Group Inc., senior note, 7.625%, 11/30/12 ........................ United States 800,000 811,705
E*TRADE Financial Corp., senior note, 8.00%, 6/15/11 ................. United States 800,000 698,000
GMAC LLC,
7.25%, 3/02/11 ................................................. United States 2,000,000 1,754,260
6.875%, 8/28/12 ................................................ United States 3,000,000 2,516,268
c ICICI Bank Ltd., 144A, 6.625%, 10/03/12 .............................. India 1,000,000 991,906
Lehman Brothers Holdings Inc., senior note, 6.20%, 9/26/14 ........... United States 3,000,000 3,059,577
Morgan Stanley, sub. note, 4.75%, 4/01/14 ............................ United States 2,000,000 1,876,186
United Rentals North America Inc., senior sub. note, 7.75%,
11/15/13 .......................................................... United States 1,100,000 957,000
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13,711,628
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HEALTH SERVICES 5.3%
Coventry Health Care Inc., senior note, 5.875%, 1/15/12 .............. United States 3,000,000 3,052,560
DaVita Inc.,
senior note, 6.625%, 3/15/13 ................................... United States 900,000 900,000
senior sub. note, 7.25%, 3/15/15 ............................... United States 1,000,000 1,007,500
c FMC Finance III SA, senior note, 144A, 6.875%, 7/15/17 ............... Germany 1,000,000 1,005,000
Fresenius Medical Care Capital Trust II, 7.875%, 2/01/08 ............. Germany 2,000,000 2,005,000
HCA Inc., senior secured note, 9.125%, 11/15/14 ...................... United States 3,000,000 3,127,500
Tenet Healthcare Corp., senior note, 6.375%, 12/01/11 ................ United States 2,500,000 2,287,500
4 | Quarterly Statement of Investments
Franklin Templeton
Limited Duration Income Trust
STATEMENT OF INVESTMENTS, DECEMBER 31, 2007 (UNAUDITED) (CONTINUED)
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COUNTRY PRINCIPAL AMOUNT a VALUE
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LONG TERM INVESTMENTS (CONTINUED)
CORPORATE BONDS (CONTINUED)
HEALTH SERVICES (CONTINUED)
U.S. Oncology Holdings Inc., senior note, PIK, 10.759%, 3/15/12 ...... United States 2,000,000 $ 1,670,000
United Surgical Partners International Inc., senior sub. note, PIK,
9.25%, 5/01/17 .................................................... United States 1,100,000 1,078,000
Vanguard Health Holding Co. II LLC, senior sub. note, 9.00%,
10/01/14 .......................................................... United States 3,000,000 2,902,500
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19,035,560
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INDUSTRIAL SERVICES 1.7%
Compagnie Generale de Geophysique-Veritas, senior note, 7.50%,
5/15/15 ........................................................... France 2,000,000 2,035,000
El Paso Corp., senior note, 6.875%, 6/15/14 .......................... United States 2,000,000 2,024,448
The Williams Co. Inc., 8.125%, 3/15/12 ............................... United States 2,000,000 2,187,500
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6,246,948
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NON-ENERGY MINERALS 0.8%
b Freeport-McMoRan Copper & Gold Inc., senior note, FRN, 8.394%,
4/01/15 ........................................................... United States 3,000,000 3,052,500
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PROCESS INDUSTRIES 4.3%
Buckeye Technologies Inc., senior sub. note, 8.00%, 10/15/10 ......... United States 600,000 597,000
Crown Americas Inc., senior note, 7.625%, 11/15/13 ................... United States 3,000,000 3,082,500
Huntsman International LLC, senior sub. note, 7.875%, 11/15/14 ....... United States 2,000,000 2,130,000
c Ineos Group Holdings PLC, 144A, 8.50%, 2/15/16 ....................... United Kingdom 3,000,000 2,685,000
JSG Funding PLC, senior sub. note, 7.75%, 4/01/15 .................... Ireland 3,000,000 2,865,000
c MacDermid Inc., senior sub. note, 144A, 9.50%, 4/15/17 ............... United States 2,000,000 1,890,000
Nalco Co., senior sub. note, 8.875%, 11/15/13 ........................ United States 2,000,000 2,095,000
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15,344,500
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PRODUCER MANUFACTURING 0.6%
RBS Global & Rexnord Corp., senior note, 9.50%, 8/01/14 .............. United States 2,000,000 1,990,000
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REAL ESTATE INVESTMENT TRUST 0.7%
Host Marriott LP, senior note, K, 7.125%, 11/01/13 ................... United States 2,500,000 2,531,250
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RETAIL TRADE 0.5%
Michaels Stores Inc., senior note, 10.00%, 11/01/14 .................. United States 2,000,000 1,910,000
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TECHNOLOGY SERVICES 1.1%
SunGard Data Systems Inc., senior note, 9.125%, 8/15/13 .............. United States 4,000,000 4,090,000
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UTILITIES 2.4%
Aquila Inc., senior note, 9.95%, 2/01/11 ............................. United States 2,000,000 2,162,000
Dynegy Holdings Inc., senior note, 7.50%, 6/01/15 .................... United States 2,000,000 1,880,000
NRG Energy Inc., senior note, 7.25%, 2/01/14 ......................... United States 2,800,000 2,737,000
c Texas Competitive Electric Holdings Co. LLC, senior note, B, 144A,
10.25%, 11/01/15 .................................................. United States 1,900,000 1,890,500
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8,669,500
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TOTAL CORPORATE BONDS (COST $161,394,450) ............................ 158,044,812
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Quarterly Statement of Investments | 5
Franklin Templeton
Limited Duration Income Trust
STATEMENT OF INVESTMENTS, DECEMBER 31, 2007 (UNAUDITED) (CONTINUED)
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COUNTRY PRINCIPAL AMOUNT a VALUE
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LONG TERM INVESTMENTS (CONTINUED)
MORTGAGE-BACKED SECURITIES 35.0%
b FEDERAL HOME LOAN MORTGAGE CORP. (FHLMC) ADJUSTABLE RATE 0.3%
FHLMC, 5.267%, 5/01/34 ............................................... United States 1,045,479 $ 1,054,714
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FEDERAL HOME LOAN MORTGAGE CORP. (FHLMC) FIXED RATE 12.7%
FHLMC Gold 15 Year, 4.50%, 6/01/18 - 9/01/18 ......................... United States 2,693,525 2,650,694
FHLMC Gold 15 Year, 5.00%, 9/01/18 - 11/01/18 ........................ United States 5,384,446 5,398,555
FHLMC Gold 15 Year, 5.50%, 7/01/19 ................................... United States 273,341 276,944
FHLMC Gold 15 Year, 6.00%, 5/01/22 ................................... United States 1,382,983 1,415,010
FHLMC Gold 30 Year, 5.50%, 8/01/33 ................................... United States 4,738,689 4,738,075
FHLMC Gold 30 Year, 5.50%, 12/01/34 - 2/01/37 ........................ United States 4,493,618 4,487,714
d FHLMC Gold 30 Year, 6.00%, 1/15/31 ................................... United States 4,000,000 4,059,376
FHLMC Gold 30 Year, 6.00%, 7/01/28 - 10/01/36 ........................ United States 10,734,395 10,916,273
FHLMC Gold 30 Year, 6.00%, 7/01/36 ................................... United States 5,519,428 5,603,281
FHLMC Gold 30 Year, 6.50%, 1/01/35 ................................... United States 2,859,192 2,947,278
FHLMC Gold 30 Year, 7.00%, 9/01/27 ................................... United States 904,720 951,503
FHLMC Gold 30 Year, 8.00%, 1/01/31 ................................... United States 148,966 159,578
FHLMC Gold 30 Year, 8.50%, 7/01/31 ................................... United States 1,931,972 2,080,131
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45,684,412
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b FEDERAL NATIONAL MORTGAGE ASSOCIATION (FNMA) ADJUSTABLE RATE 0.6%
FNMA, 4.583%, 7/01/34 ................................................ United States 2,107,057 2,117,334
FNMA, 5.991%, 6/01/32 ................................................ United States 106,515 109,026
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2,226,360
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FEDERAL NATIONAL MORTGAGE ASSOCIATION (FNMA) FIXED RATE 18.8%
FNMA 15 Year, 5.00%, 10/01/17 ........................................ United States 1,500,055 1,503,902
FNMA 15 Year, 5.50%, 10/01/17 - 1/01/21 .............................. United States 8,731,801 8,853,466
FNMA 15 Year, 6.00%, 8/01/21 ......................................... United States 5,344,400 5,473,397
FNMA 15 Year, 6.00%, 9/01/21 ......................................... United States 4,537,857 4,647,387
FNMA 15 Year, 6.50%, 7/01/20 ......................................... United States 644,852 653,991
FNMA 30 Year, 5.00%, 3/01/37 ......................................... United States 2,950,219 2,879,132
FNMA 30 Year, 5.50%, 8/01/33 - 1/01/36 ............................... United States 9,129,087 9,129,040
FNMA 30 Year, 5.50%, 9/01/33 ......................................... United States 4,042,210 4,045,840
FNMA 30 Year, 6.00%, 4/01/33 - 1/01/36 ............................... United States 10,670,405 10,851,493
d FNMA 30 Year, 6.50%, 1/01/32 ......................................... United States 1,000,000 1,027,969
FNMA 30 Year, 6.50%, 8/01/32 - 6/01/36 ............................... United States 8,604,128 8,855,153
FNMA 30 Year, 6.50%, 6/01/36 ......................................... United States 8,632,436 8,875,863
FNMA 30 Year, 7.00%, 9/01/18 ......................................... United States 333,351 351,650
FNMA 30 Year, 8.00%, 10/01/29 ........................................ United States 215,396 230,548
FNMA 30 Year, 8.50%, 8/01/26 ......................................... United States 593,257 638,437
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68,017,268
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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 2,515,701 2,535,488
GNMA I SF 30 Year, 5.50%, 12/15/34 ................................... United States 3,780,288 3,809,612
GNMA I SF 30 Year, 6.50%, 6/15/31 - 12/15/33 ......................... United States 2,299,428 2,384,044
6 | Quarterly Statement of Investments
Franklin Templeton
Limited Duration Income Trust
STATEMENT OF INVESTMENTS, DECEMBER 31, 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 230,402 $ 243,882
GNMA II SF 30 Year, 8.00%, 1/20/28 - 2/20/32 .......................... United States 459,328 495,553
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9,468,579
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TOTAL MORTGAGE-BACKED SECURITIES (COST $126,148,165) .................. 126,451,333
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ASSET-BACKED SECURITIES AND COMMERCIAL MORTGAGE-BACKED
SECURITIES 6.4%
COMMERCIAL SERVICES 1.4%
Banc of America Commercial Mortgage Inc., 2005-3, A2, 4.501%,
7/10/43 ............................................................. United States 5,000,000 4,941,563
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FINANCE 5.0%
b Argent Securities Inc., 2003-W5, M4, FRN, 6.663%, 10/25/33 ............ United States 1,494,021 1,151,203
b Chase Credit Card Master Trust, 2003-6, A, FRN, 5.138%,
2/15/11 ............................................................. United States 1,700,000 1,699,865
b Chase Funding Mortgage Loan Asset-Backed Certificates, 2004-2, 2A2,
FRN, 5.115%, 2/25/35 ................................................ United States 1,922,951 1,883,688
b Chase Issuance Trust, 2005-A9, A9, FRN, 5.048%, 11/15/11 .............. United States 1,000,000 996,714
b Citigroup/Deutsche Bank Commercial Mortgage Trust, 2005-CD1, A3,
FRN, 5.40%, 7/15/44 ................................................. United States 3,000,000 2,999,802
Greenwich Capital Commercial Funding Corp., 2004-GG1, A7,
5.317%, 6/10/36 ..................................................... United States 1,605,000 1,635,603
b GSAMP Trust, 2003-AHL, B1, FRN, 8.865%, 10/25/33 ...................... United States 1,333,924 1,158,908
LB-UBS Commercial Mortgage Trust,
2005-C1, A2, 4.31%, 2/15/30 ........................................ United States 1,395,000 1,377,179
b 2002-C2, A4, FRN, 5.594%, 6/15/31 .................................. United States 2,000,000 2,070,009
b Merrill Lynch Mortgage Investors Trust, 2003-OPT1, B2, FRN, 7.615%,
7/25/34 ............................................................. United States 309,986 55,735
b Morgan Stanley ABS Capital,
2003-HE3, B1, FRN, 8.165%, 10/25/33 .............................. United States 897,301 612,329
2003-NC10, B1, FRN, 8.165%, 10/25/33 ............................. United States 605,756 355,197
b Morgan Stanley Dean Witter Capital I, 2003-NC3, B1, FRN, 9.252%,
3/25/33 ............................................................. United States 683,608 322,814
b New Century Home Equity Loan Trust, 2003-2, M3, FRN, 10.169%,
1/25/33 ............................................................. United States 903,015 403,886
b Option One Mortgage Loan Trust, 2003-6, M5, FRN, 8.165%,
11/25/33 ............................................................ United States 1,086,730 437,792
b Specialty Underwriting & Residential Finance, 2003-BC4, B2, FRN,
7.365%, 11/25/34 .................................................... United States 465,742 249,961
b Structured Asset Investment Loan Trust,
2003-BC2, M3, FRN, 8.115%, 4/25/33 ............................... United States 13,987 5,042
2003-BC13, M4, FRN, 7.615%, 11/25/33 ............................. United States 687,017 652,417
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18,068,144
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TOTAL ASSET-BACKED SECURITIES AND COMMERCIAL MORTGAGE-BACKED
SECURITIES (COST $25,935,037) ....................................... 23,009,707
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Quarterly Statement of Investments | 7
Franklin Templeton
Limited Duration Income Trust
STATEMENT OF INVESTMENTS, DECEMBER 31, 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 58.3%
COMMERCIAL SERVICES 7.8%
Acxiom Corp., Term Loan B, 6.541% - 6.715%, 9/14/12 ................... United States 1,045,000 $ 1,005,112
Affiliated Computer Services Inc.,
Additional Term Loan, 6.845% - 7.243%, 3/20/13 ..................... United States 1,773,000 1,718,924
Term Loan B, 6.865%, 3/20/13 ....................................... United States 490,000 475,055
ARAMARK Corp.,
Synthetic L/C, 5.198%, 1/26/14 ..................................... United States 244,796 232,128
Term Loan B, 6.705%, 1/26/14 ....................................... United States 3,425,106 3,247,857
Cenveo Corp.,
Delayed Draw Term Loan, 6.66%, 6/21/13 ............................. United States 53,130 50,449
Term Loan C, 6.66%, 6/21/13 ........................................ United States 1,594,463 1,514,022
Corporate Express U.S. Finance Inc., Term Loan D-1 Add-On,
6.991% - 7.01%, 12/23/10 ............................................ United States 1,660,922 1,624,034
Dealer Computer Services Inc. (Reynolds & Reynolds), First Lien Term
Loan, 6.843%, 10/26/12 .............................................. United States 3,513,600 3,389,359
Emdeon Business Services LLC, First Lien Term Loan, 6.83%,
11/16/13 ............................................................ United States 2,613,228 2,537,497
First Data Corp., Term Loan B-2, 7.58% - 7.634%, 9/24/14 .............. United States 2,992,500 2,838,386
Idearc Inc., Term Loan B, 6.83%, 11/17/14 ............................. United States 4,063,975 3,880,202
Nielsen Finance LLC (VNU Inc.), Dollar Term Loan, 6.896% - 7.493%,
8/09/13 ............................................................. United States 4,056,970 3,848,158
R.H. Donnelley Inc., Term Loan D-2, 6.33% - 6.66%, 6/30/11 ............ United States 1,852,758 1,794,822
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28,156,005
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COMMUNICATIONS 3.5%
Alaska Communications Systems Holdings Inc.,
2005 Incremental Loan, 6.58%, 2/01/12 .............................. United States 100,000 94,792
Term Loan, 6.58%, 2/01/12 .......................................... United States 4,000,000 3,790,360
Alltel Communications Corp., Term Loan B-3, 7.778%, 6/30/15 ........... United States 2,493,750 2,387,441
d CommScope Inc., Term Loan B, 9.00%, 11/30/14 .......................... United States 2,500,000 2,461,075
West Corp., Term Loan B-2, 7.22% - 7.468%, 10/24/13 ................... United States 1,881,036 1,785,799
Windstream Corp., Tranche B-1, 6.714%, 7/17/13 ........................ United States 2,038,321 1,992,459
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12,511,926
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CONSUMER DURABLES 1.3%
Jarden Corp., Term Loan B2, 6.58%, 1/24/12 ............................ United States 2,927,275 2,809,014
Stile Acquisition Corp. (Masonite), Canadian Term Loan,
6.83% - 7.084%, 4/05/13 ............................................. Canada 1,049,455 951,572
Stile U.S. Acquisition Corp. (Masonite), U.S. Term Loan,
6.83% - 7.084%, 4/05/13 ............................................. United States 1,051,243 953,193
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4,713,779
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CONSUMER NON-DURABLES 2.1%
Acco Brands Corp., Term Loan B, 6.676% - 6.949%, 8/17/12 .............. United States 859,355 822,721
Bumble Bee Foods LLC, Term Loan B, 7.148% - 7.474%, 5/02/12 ........... United States 500,000 485,025
8 | Quarterly Statement of Investments
Franklin Templeton
Limited Duration Income Trust
STATEMENT OF INVESTMENTS, DECEMBER 31, 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)
CBRL Group (Cracker Barrel),
Term Loan B1, 6.40%, 4/27/13 ....................................... United States 850,946 $ 807,658
Term Loan B2 (Delayed Draw), 6.38% - 6.40%, 4/27/13 ................ United States 102,218 97,018
Central Garden & Pet Co., Term Loan B, 6.35% - 6.53%, 9/30/12 ......... United States 180,659 156,897
Dean Foods Co., Term Loan B, 6.58%, 4/02/14 ........................... United States 3,775,729 3,532,949
Michael Foods Inc., Term Loan B1, 6.845% - 6.91%, 11/21/10 ............ United States 1,579,873 1,551,767
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7,454,035
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CONSUMER SERVICES 16.1%
Arby's Restaurant Holdings LLC, Term Loan B, 7.08% - 7.21%,
7/25/12 ............................................................. United States 1,566,673 1,518,984
Charter Communications Operating LLC, Term Loan, 6.99%,
3/06/14 ............................................................. United States 2,362,560 2,206,607
Cinram International, Term Loan B, 6.878%, 5/05/11 .................... Canada 1,301,904 1,181,621
Citadel Broadcasting Corp., Term Loan B, 6.455% - 6.475%,
6/12/14 ............................................................. United States 4,000,000 3,619,560
CSC Holdings Inc. (Cablevision), Incremental Term Loan, 6.896%,
3/29/13 ............................................................. United States 786,000 739,154
Education Management LLC, Term Loan C, 6.625%, 6/01/13 ................ United States 2,876,676 2,786,406
Entravision Communications Corp., Term Loan B, 6.73%, 3/29/13 ......... United States 1,933,157 1,819,546
Gray Television Inc., Term Loan B, 6.73%, 12/31/14 .................... United States 800,000 740,016
Insight Midwest Holdings, Term Loan B, 7.00%, 4/02/14 ................. United States 3,200,000 3,075,616
Intelsat Corp. (Panamsat), Term Loan B2, 7.225%, 1/03/14 .............. United States 3,900,600 3,800,706
Intelsat Subsidiary Holding Co. Ltd., Term Loan B, 6.975%,
6/30/13 ............................................................. United States 1,880,442 1,858,497
Laureate Education Inc., Closing Date Term Loan, 8.729%,
9/25/14 ............................................................. United States 2,345,734 2,259,036
MCC Iowa,
Term Loan D-1, 6.69%, 1/31/15 ...................................... United States 2,509,933 2,313,179
Term Loan D-2 (Delayed Draw), 6.69%, 1/31/15 ....................... United States 58,410 53,831
MediaNews Group Inc., Term Loan B, 6.58%, 12/30/10 .................... United States 2,237,624 2,095,289
Mission Broadcasting Inc., Term Loan B, 6.58%, 10/01/12 ............... United States 1,664,366 1,593,897
Nexstar Broadcasting Inc., Term Loan B, 6.58%, 10/01/12 ............... United States 1,575,932 1,509,207
OSI Restaurant Partners LLC (Outback),
Pre-Funded Revolving Credit, 4.878%, 6/14/13 ....................... United States 296,204 274,874
Term Loan B, 7.125%, 6/14/14 ....................................... United States 3,732,165 3,458,187
Penn National Gaming Inc., Term Loan B, 6.58% - 6.76%,
10/03/12 ............................................................ United States 4,249,322 4,198,628
Regal Cinemas Corp., Term Loan, 6.33%, 10/27/13 ....................... United States 3,808,202 3,604,120
Tribune Co., Term Loan B, 7.91%, 5/16/14 .............................. United States 3,980,000 3,367,319
Univision Communications Inc., Term Loan B, 7.095% - 7.21%,
9/29/14 ............................................................. United States 2,706,040 2,471,941
UPC Financing Partnership, Term Loan N, 7.13%, 12/31/14 ............... Netherlands 2,500,000 2,336,600
Quarterly Statement of Investments | 9
Franklin Templeton
Limited Duration Income Trust
STATEMENT OF INVESTMENTS, DECEMBER 31, 2007 (UNAUDITED) (CONTINUED)
------------------------------------------------------------------------------------------------------------------------------------
COUNTRY PRINCIPAL AMOUNT a VALUE
------------------------------------------------------------------------------------------------------------------------------------
LONG TERM INVESTMENTS (CONTINUED)
b SENIOR FLOATING RATE INTERESTS (CONTINUED)
CONSUMER SERVICES (CONTINUED)
VML U.S. Finance LLC (Venetian Macau),
Delay Draw, 7.08%, 5/25/12 ......................................... Macau 1,166,667 $ 1,116,418
New Project Term Loans, 7.08%, 5/25/13 ............................. Macau 977,778 931,588
Term Loan B, 7.08%, 5/24/13 ........................................ Macau 1,703,704 1,626,236
WMG Acquisition Corp. (Warner Music), Term Loan B,
7.015% - 7.151%, 2/28/11 ............................................ United States 1,816,301 1,744,648
------------------
58,301,711
------------------
ELECTRONIC TECHNOLOGY 1.8%
Flextronics International USA Inc.,
Term Loan A, 7.394% - 7.395%, 10/01/14 ............................. United States 1,864,286 1,817,977
Term Loan A-1, 7.455%, 10/01/14 .................................... United States 535,714 522,407
Marvell Technology Group Ltd., Term Loan, 7.33%, 11/09/09 ............. Bermuda 3,158,000 3,099,608
Spirit Aerosystems Inc. (Onex Wind Finance LP), Term Loan B,
6.901%, 12/31/11 .................................................... United States 1,269,879 1,242,653
------------------
6,682,645
------------------
ENERGY MINERALS 0.6%
Citgo Petroleum Corp., Term Loan B, 6.435%, 11/15/12 .................. United States 922,413 895,340
Western Refining Inc., Term Loan B, 6.595%, 5/30/14 ................... United States 1,201,107 1,154,192
------------------
2,049,532
------------------
FINANCE 2.2%
CB Richard Ellis Services Inc., Term Loan B, 6.449%, 12/20/13 ......... United States 2,538,159 2,410,591
Conseco Inc., Term Loan, 6.845%, 10/10/13 ............................. United States 2,185,951 2,007,118
Nuveen Investments Inc., Term Loan B, 7.83% - 7.865%,
11/13/14 ............................................................ United States 1,900,000 1,873,951
TD Ameritrade Holding Corp., Term Loan B, 6.35%, 12/31/12 ............. United States 1,611,114 1,569,950
------------------
7,861,610
------------------
HEALTH SERVICES 5.2%
Community Health Systems Inc., Term Loan, 7.331%, 7/25/14 ............. United States 2,532,947 2,434,668
DaVita Inc., Term Loan B-1, 6.35% - 6.75%, 10/05/12 ................... United States 2,717,434 2,607,813
Fresenius Medical Care Holdings Inc., Term Loan B,
6.205% - 6.624%, 3/31/13 ............................................ United States 4,004,464 3,861,865
HCA Inc., Term Loan B-1, 7.08%, 11/18/13 .............................. United States 4,111,534 3,940,741
HCR Healthcare LLC, Term Loan B, 7.605%, 12/21/14 ..................... United States 2,000,000 1,918,960
Health Management Associates Inc., Term Loan B, 6.58% - 6.595%,
2/28/14 ............................................................. United States 2,678,087 2,491,424
Vanguard Health Holding Co. II LLC, Replacement Term Loan,
7.095%, 9/23/11 ..................................................... United States 1,592,010 1,531,753
------------------
18,787,224
------------------
10 | Quarterly Statement of Investments
Franklin Templeton
Limited Duration Income Trust
STATEMENT OF INVESTMENTS, DECEMBER 31, 2007 (UNAUDITED) (CONTINUED)
------------------------------------------------------------------------------------------------------------------------------------
COUNTRY PRINCIPAL AMOUNT a VALUE
------------------------------------------------------------------------------------------------------------------------------------
LONG TERM INVESTMENTS (CONTINUED)
b SENIOR FLOATING RATE INTERESTS (CONTINUED)
HEALTH TECHNOLOGY 1.5%
Bausch and Lomb Inc., Parent Term Loan B, 8.08%, 4/28/15 .............. United States 560,000 $ 557,144
DJO Finance LLC, Term Loan B, 7.83%, 5/20/14 .......................... United States 2,750,000 2,712,930
d Mylan Inc., Term Loan B, 9.75%, 10/02/14 .............................. United States 2,200,000 2,172,500
------------------
5,442,574
------------------
INDUSTRIAL SERVICES 1.7%
Allied Waste North America Inc.,
Credit Link, 5.121%, 3/28/14 ....................................... United States 965,857 927,705
Term Loan B, 6.36% - 6.88%, 3/28/14 ................................ United States 1,606,459 1,543,004
Knight Inc. (Kinder Morgan), Term Loan B, 6.35%, 5/30/14 .............. United States 2,321,273 2,298,176
URS Corp., Term Loan B, 7.593%, 5/15/13 ............................... United States 1,468,712 1,460,208
------------------
6,229,093
------------------
PROCESS INDUSTRIES 5.3%
Georgia-Pacific Corp.,
Additional Term Loan, 6.58% - 6.896%, 12/20/12 ..................... United States 1,682,475 1,593,943
Term Loan B, 6.58% - 6.896%, 12/20/12 .............................. United States 2,450,000 2,317,063
Hexion Specialty Chemicals Inc., Term Loan C-1, 7.50%, 5/03/13 ........ United States 3,253,985 3,159,001
Hexion Specialty Chemicals, B.V., Term Loan C-2, 7.125%, 5/03/13 ..... Netherlands 705,069 684,488
Huntsman International LLC, Term Loan B, 6.615%, 4/21/14 .............. United States 2,711,000 2,650,328
Ineos U.S. Finance LLC,
Term Loan B2, 7.357%, 12/16/13 ..................................... United States 392,000 379,221
Term Loan C2, 7.857%, 12/23/14 ..................................... United States 392,000 377,872
Nalco Co., Term Loan B, 6.48% - 7.12%, 11/04/10 ....................... United States 1,343,428 1,319,421
d NewPage Corp., Term Loan, 10.25%, 12/22/14 ............................ United States 846,472 838,101
Oxbow Carbon LLC,
Delayed Draw Term Loan, 6.83%, 5/08/14 ............................. United States 240,403 225,906
Term Loan B, 7.51%, 5/08/14 ........................................ United States 2,687,750 2,525,679
Univar Inc., OPCO Tranche Term Loan B, 7.887%, 10/11/14 ............... United States 1,300,000 1,270,113
Verso Paper Holdings LLC, Term Loan B, 6.58%, 8/01/13 ................. United States 1,914,939 1,846,116
------------------
19,187,252
------------------
PRODUCER MANUFACTURING 5.7%
Allison Transmission, Term Loan B, 7.90% - 8.00%, 8/07/14 ............. United States 2,500,000 2,326,900
Cooper Standard Automotive Inc., Term Loan D, 7.375%,
12/23/11 ............................................................ United States 882,000 850,918
Dresser Inc., Term Loan B, 6.449% - 7.345%, 5/04/14 ................... United States 1,571,385 1,515,412
GPS CCMP Merger Corp. (Generac), Term Loan B, 7.73%,
11/09/13 ............................................................ United States 3,215,333 2,873,415
Nortek Inc., Term Loan, 7.10%, 8/27/11 ................................ United States 1,443,696 1,341,049
Oshkosh Truck Corp.,
Term Loan A, 6.65%, 12/06/11 ....................................... United States 875,000 852,241
Term Loan B, 6.90%, 12/06/13 ....................................... United States 2,863,750 2,730,214
RBS Global Inc. (Rexnord Corp.), Term Loan, 7.449% - 7.68%,
7/22/13 ............................................................. United States 3,000,000 2,900,100
Quarterly Statement of Investments | 11
Franklin Templeton
Limited Duration Income Trust
STATEMENT OF INVESTMENTS, DECEMBER 31, 2007 (UNAUDITED) (CONTINUED)
------------------------------------------------------------------------------------------------------------------------------------
COUNTRY PRINCIPAL AMOUNT a VALUE
------------------------------------------------------------------------------------------------------------------------------------
LONG TERM INVESTMENTS (CONTINUED)
b SENIOR FLOATING RATE INTERESTS (CONTINUED)
PRODUCER MANUFACTURING (CONTINUED)
Sensus Metering Systems Inc.,
Term Loan B1, 6.901% - 7.18%, 12/17/10 .......................... United States 2,212,955 $ 2,156,148
Term Loan B2, 6.718% - 6.901%, 12/17/10 ......................... Luxembourg 143,778 140,087
TriMas Co. LLC,
Term Loan B, 7.234%, 8/02/13 .................................... United States 1,596,713 1,537,395
Tranche B-1 L/C, 7.70%, 8/02/13 ................................. United States 373,136 363,521
TRW Automotive Inc., Tranche B-1 Term Loan, 6.688%, 2/09/14 ........ United States 920,034 891,365
------------------
20,478,765
------------------
RETAIL TRADE 0.2%
Neiman Marcus Group Inc., Term Loan, 6.90% - 7.002%, 4/06/13 ....... United States 987,342 946,950
------------------
TECHNOLOGY SERVICES 1.0%
SunGard Data Systems Inc., New U.S. Term Loan, 6.898%,
2/28/14 .......................................................... United States 3,833,685 3,692,682
------------------
UTILITIES 2.3%
Dynegy Holdings Inc.,
Term L/C Facility, 6.355%, 4/02/13 .............................. United States 2,923,913 2,733,976
Term Loan B, 6.752%, 4/02/13 .................................... United States 75,897 70,966
NRG Energy Inc.,
Credit Link, 6.48%, 2/01/13 ..................................... United States 819,782 780,441
Term Loan, 6.58%, 2/01/13 ....................................... United States 1,775,589 1,690,378
Texas Competitive Electric Holdings Co. LLC, Term Loan B-2, 8.396%,
10/10/14 ......................................................... United States 3,000,000 2,940,030
------------------
8,215,791
------------------
TOTAL SENIOR FLOATING RATE INTERESTS (COST $218,801,734) ........... 210,711,574
------------------
FOREIGN GOVERNMENT AND AGENCY SECURITIES 4.6%
b,e Government of Argentina, FRN, 5.389%, 8/03/12 ...................... Argentina 3,950,000 2,147,801
Government of Malaysia,
6.45%, 7/01/08 .................................................. Malaysia 1,400,000 MYR 429,502
7.00%, 3/15/09 .................................................. Malaysia 1,500,000 MYR 472,189
3.756%, 4/28/11 ................................................. Malaysia 7,510,000 MYR 2,283,561
Government of Norway, 5.50%, 5/15/09 ............................... Norway 3,360,000 NOK 625,013
Government of Poland, 6.00%, 5/24/09 ............................... Poland 5,645,000 PLN 2,279,511
Government of Singapore, 5.625%, 7/01/08 ........................... Singapore 2,150,000 SGD 1,518,750
Government of Sweden,
6.50%, 5/05/08 .................................................. Sweden 15,600,000 SEK 2,429,963
5.00%, 1/28/09 .................................................. Sweden 2,800,000 SEK 436,706
f Strip, 9/17/08 .................................................. Sweden 1,500,000 SEK 225,333
Korea Treasury Bond, 5.25%, 9/10/12 ................................ South Korea 3,600,000,000 KRW 3,765,482
------------------
TOTAL FOREIGN GOVERNMENT AND AGENCY SECURITIES
(COST $16,085,853) ............................................... 16,613,811
------------------
TOTAL LONG TERM INVESTMENTS (COST $548,365,239) .................... 534,831,237
------------------
12 | Quarterly Statement of Investments
Franklin Templeton
Limited Duration Income Trust
STATEMENT OF INVESTMENTS, DECEMBER 31, 2007 (UNAUDITED) (CONTINUED)
------------------------------------------------------------------------------------------------------------------------------------
COUNTRY PRINCIPAL AMOUNT a VALUE
------------------------------------------------------------------------------------------------------------------------------------
SHORT TERM INVESTMENTS 5.8%
FOREIGN GOVERNMENT AND AGENCY SECURITIES 0.7%
f Egypt Treasury Bills, 7/01/08 - 12/16/08 ........................... Egypt 9,150,000 EGP $ 1,554,440
f Government of Sweden, Strip, 6/18/08 ............................... Sweden 4,050,000 SEK 614,619
f Malaysia Treasury Bill, 6/06/08 .................................... Malaysia 800,000 MYR 238,472
f Norway Treasury Bills, 6/18/08 - 9/17/08 ........................... Norway 340,000 NOK 60,622
------------------
TOTAL FOREIGN GOVERNMENT AND AGENCY SECURITIES
(COST $2,421,067) ................................................ 2,468,153
------------------
TOTAL INVESTMENTS BEFORE MONEY MARKET FUND
(COST $550,786,306) .............................................. 537,299,390
------------------
------------------
SHARES
------------------
MONEY MARKET FUND (COST $18,334,059) 5.1%
g Franklin Institutional Fiduciary Trust Money Market Portfolio,
4.58% ............................................................ United States 18,334,059 18,334,059
------------------
TOTAL INVESTMENTS (COST $569,120,365) 153.9% ....................... 555,633,449
PREFERRED SHARES (52.6)% ........................................... (190,000,000)
NET UNREALIZED GAIN ON FORWARD EXCHANGE
CONTRACTS 0.0% h ................................................... 29,676
OTHER ASSETS, LESS LIABILITIES (1.3)% .............................. (4,601,570)
------------------
NET ASSETS APPLICABLE TO COMMON SHARES 100.0% ...................... $ 361,061,555
==================
CURRENCY ABBREVIATIONS
EGP - Egyptian Pound
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
GP - Graduated Payment
L/C - Letter of Credit
PIK - Payment-In-Kind
SF - Single Family
Quarterly Statement of Investments | 13
Franklin Templeton
Limited Duration Income Trust
STATEMENT OF INVESTMENTS, DECEMBER 31, 2007 (UNAUDITED) (CONTINUED)
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 December 31, 2007, the aggregate value of these
securities was $21,446,425, representing 5.94% of net assets.
d A portion or all of the security purchased on a delayed delivery or
to-be-announced 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.
h Rounds to less than 0.1% of net assets.
14 | See Notes to Statement of Investments. | Quarterly Statement of Investments
Franklin Templeton
Limited Duration Income Trust
NOTES TO STATEMENT OF INVESTMENTS (UNAUDITED)
1. ORGANIZATION
Franklin Templeton Limited Duration Income Trust (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.
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.
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
Quarterly Statement of Investments | 15
Franklin Templeton
Limited Duration Income Trust
NOTES TO STATEMENT OF INVESTMENTS (UNAUDITED) (CONTINUED)
2. SECURITY VALUATION (CONTINUED)
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 December 31, 2007, the cost of investments and net unrealized appreciation
(depreciation) for income tax purposes were as follows:
Cost of investments ..................................... $ 570,257,920
==============
Unrealized appreciation ................................. $ 3,854,027
Unrealized depreciation ................................. (18,478,498)
--------------
Net unrealized appreciation (depreciation) .............. $ (14,624,471)
==============
4. FORWARD EXCHANGE CONTRACTS
At December 31, 2007, the Fund had the following forward exchange contract
outstanding:
-------------------------------------------------
CONTRACT SETTLEMENT UNREALIZED UNREALIZED
AMOUNT a DATE GAIN (LOSS)
-------------------------------------------------
CONTRACTS TO BUY
5,900,000 Norwegian Krone ................................ 1,055,116 1/28/08 $ 29,676 $ --
------------------------
Net unrealized gain (loss) on forward exchange contracts .......................... $ 29,676
=========
a In U.S. dollars unless otherwise indicated.
16 | Quarterly Statement of Investments
Franklin Templeton
Limited Duration Income Trust
NOTES TO STATEMENT OF INVESTMENTS (UNAUDITED) (CONTINUED)
5. NEW ACCOUNTING PRONOUNCEMENT
In September 2006, the Financial Accounting Standards Board (FASB) issued FASB
Statement No. 157, "Fair Value Measurement" (SFAS 157), which defines fair
value, establishes a framework for measuring fair value, and expands disclosures
about fair value measurements. SFAS 157 is effective for fiscal years beginning
after November 15, 2007, and interim periods within those fiscal years. The Fund
believes the adoption of SFAS 157 will have no material impact on its financial
statements.
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 | 17
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 Galen G. Vetter, Chief Executive Officer - Finance and Administration,
and Laura Fergerson, Chief Financial Officer and Chief Accounting 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/GALEN G. VETTER
-------------------------------
Galen G. Vetter
Chief Executive Officer -
Finance and Administration
Date February 27, 2008
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/GALEN G. VETTER
-----------------------------------
Galen G. Vetter
Chief Executive Officer -
Finance and Administration
Date February 27, 2008
By /s/LAURA FERGERSON
------------------------------------
Laura Fergerson
Chief Financial Officer and
Chief Accounting Officer
Date February 27, 2008