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: 12/31/06
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Item 1. Schedule of Investments.
Franklin Templeton
Limited Duration Income Trust
QUARTERLY STATEMENT OF INVESTMENTS
DECEMBER 31, 2006
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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, DECEMBER 31, 2006 (UNAUDITED)
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COUNTRY PRINCIPAL AMOUNT a VALUE
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LONG TERM INVESTMENTS 143.8%
CORPORATE BONDS 48.6%
COMMERCIAL SERVICES 2.8%
Dex Media West LLC, senior sub. note, 9.875%, 8/15/13 ................... United States 4,000,000 $ 4,380,000
JohnsonDiversey Holdings Inc., senior disc. note, zero cpn. to 5/17/07,
10.67% thereafter, 5/15/13 ............................................ United States 3,000,000 2,910,000
b Rental Service Corp., senior note, 144A, 9.50%, 12/01/14 ................ United States 1,100,000 1,141,250
United Rentals North America Inc., senior sub. note, 7.75%,
11/15/13 .............................................................. United States 2,000,000 2,017,500
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10,448,750
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COMMUNICATIONS 5.9%
Dobson Cellular Systems Inc., senior secured note, 9.875%,
11/01/12 .............................................................. United States 3,000,000 3,285,000
c Intelsat Subsidiary Holding Co. Ltd., senior note, FRN, 10.484%,
1/15/12 ............................................................... Bermuda 4,000,000 4,055,000
Millicom International Cellular SA, senior note, 10.00%, 12/01/13 ....... Luxembourg 3,000,000 3,285,000
Qwest Communications International Inc., senior note, B, 7.50%,
2/15/14 ............................................................... United States 3,000,000 3,105,000
c Rogers Wireless Communications Inc., senior secured note, FRN,
8.485%, 12/15/10 ...................................................... Canada 2,000,000 2,045,000
b Wind Acquisition Finance SA, senior note, 144A, 10.75%,
12/01/15 .............................................................. Italy 3,000,000 3,427,500
b Windstream Corp., senior note, 144A, 8.625%, 8/01/16 .................... United States 2,800,000 3,080,000
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22,282,500
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CONSUMER DURABLES 3.3%
Beazer Homes USA Inc., senior note, 8.375%, 4/15/12 ..................... United States 2,000,000 2,065,000
Ford Motor Credit Co.,
5.625%, 10/01/08 .................................................... United States 4,000,000 3,929,588
c FRN, 9.824%, 4/15/12 ................................................ United States 1,000,000 1,061,056
senior note, 9.875%, 8/10/11 ........................................ United States 500,000 535,257
Jostens IH Corp., senior sub. note, 7.625%, 10/01/12 .................... United States 1,100,000 1,119,250
KB Home, 6.375%, 8/15/11 ................................................ United States 4,000,000 3,955,772
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12,665,923
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CONSUMER NON-DURABLES 3.4%
Dole Food Co. Inc., senior note, 8.625%, 5/01/09 ........................ United States 2,000,000 1,997,500
Reynolds American Inc., senior secured note, 7.25%, 6/01/13 ............. United States 2,000,000 2,088,992
Smithfield Foods Inc., senior note, 8.00%, 10/15/09 ..................... United States 3,000,000 3,150,000
Spectrum Brands Inc., senior sub. note, 8.50%, 10/01/13 ................. United States 2,500,000 2,350,000
Tyson Foods Inc., senior note, 8.25%, 10/01/11 .......................... United States 3,000,000 3,256,863
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12,843,355
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CONSUMER SERVICES 10.3%
c AMC Entertainment Inc., senior note, FRN, 9.624%, 8/15/10 ............... United States 3,000,000 3,116,250
Boyd Gaming Corp., senior sub. note, 8.75%, 4/15/12 ..................... United States 2,000,000 2,100,000
CanWest Media Inc., senior sub. note, 8.00%, 9/15/12 .................... Canada 3,000,000 3,146,250
CCH II LLC, senior note, 10.25%, 9/15/10 ................................ United States 4,000,000 4,205,000
Quarterly Statement of Investments | 3
Franklin Templeton
Limited Duration Income Trust
STATEMENT OF INVESTMENTS, DECEMBER 31, 2006 (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)
Clear Channel Communications Inc., senior note, 7.65%, 9/15/10 .......... United States 3,000,000 $ 3,143,382
CSC Holdings Inc., senior note, 8.125%, 7/15/09 ......................... United States 3,000,000 3,123,750
DIRECTV Holdings LLC, senior note, 8.375%, 3/15/13 ...................... United States 2,000,000 2,090,000
Liberty Media Corp., senior note, 7.875%, 7/15/09 ....................... United States 2,000,000 2,095,648
LIN Television Corp., senior sub. note, 6.50%, 5/15/13 .................. United States 3,000,000 2,872,500
MGM MIRAGE Inc., senior note, 6.75%, 4/01/13 ............................ United States 4,000,000 3,930,000
Pinnacle Entertainment Inc., senior sub. note, 8.75%, 10/01/13 .......... United States 3,000,000 3,195,000
Quebecor Media Inc., senior note, 7.75%, 3/15/16 ........................ Canada 1,700,000 1,744,625
b Rainbow National Services LLC, senior sub. deb., 144A, 10.375%,
9/01/14 ............................................................... United States 1,000,000 1,116,250
Royal Caribbean Cruises Ltd., senior note, 8.00%, 5/15/10 ............... United States 3,000,000 3,199,152
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39,077,807
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ELECTRONIC TECHNOLOGY 2.3%
b,c Freescale Semiconductor Inc., senior note, 144A, FRN, 9.244%,
12/15/14 .............................................................. United States 2,000,000 1,992,500
b NXP BV, 144A, 7.875%, 10/15/14 .......................................... Netherlands 1,900,000 1,973,625
Sanmina-SCI Corp., senior sub. note, 6.75%, 3/01/13 ..................... United States 3,000,000 2,775,000
Solectron Global Finance Ltd., senior sub. note, 8.00%, 3/15/16 ......... United States 2,000,000 2,035,000
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8,776,125
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ENERGY MINERALS 2.4%
Chesapeake Energy Corp., senior note, 7.50%, 6/15/14 .................... United States 4,000,000 4,175,000
Mariner Energy Inc., senior note, 7.50%, 4/15/13 ........................ United States 2,000,000 1,950,000
Massey Energy Co., senior note, 6.875%, 12/15/13 ........................ United States 2,000,000 1,890,000
Pogo Producing Co., senior sub. note, 7.875%, 5/01/13 ................... United States 1,200,000 1,224,000
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9,239,000
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FINANCE 1.1%
General Motors Acceptance Corp.,
6.875%, 8/28/12 ....................................................... United States 2,000,000 2,056,034
7.25%, 3/02/11 ........................................................ United States 2,000,000 2,081,724
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4,137,758
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HEALTH SERVICES 4.3%
DaVita Inc.,
senior note, 6.625%, 3/15/13 ......................................... United States 1,900,000 1,914,250
senior sub. note, 7.25%, 3/15/15 ..................................... United States 1,000,000 1,025,000
Fresenius Medical Care Capital Trust II, 7.875%, 2/01/08 ................ Germany 3,000,000 3,060,000
b HCA Inc., senior secured note, 144A, 9.125%, 11/15/14 ................... United States 3,000,000 3,213,750
Tenet Healthcare Corp., senior note, 6.375%, 12/01/11 ................... United States 3,500,000 3,220,000
Vanguard Health Holding Co. II LLC, senior sub. note, 9.00%,
10/01/14 .............................................................. United States 4,000,000 4,070,000
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16,503,000
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4 | Quarterly Statement of Investments
Franklin Templeton
Limited Duration Income Trust
STATEMENT OF INVESTMENTS, DECEMBER 31, 2006 (UNAUDITED) (CONTINUED)
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COUNTRY PRINCIPAL AMOUNT a VALUE
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LONG TERM INVESTMENTS (CONTINUED)
CORPORATE BONDS (CONTINUED)
INDUSTRIAL SERVICES 1.4%
Allied Waste North America Inc., senior note, B, 8.50%, 12/01/08 ........ United States 2,000,000 $ 2,112,500
El Paso Natural Gas Co., senior note, A, 7.625%, 8/01/10 ................ United States 3,000,000 3,150,000
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5,262,500
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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 3,105,000
Graphic Packaging International Corp., senior note, 8.50%,
8/15/11 ............................................................... United States 2,000,000 2,080,000
JSG Funding PLC, senior sub. note, 7.75%, 4/01/15 ....................... Ireland 3,000,000 2,895,000
Lyondell Chemical Co., senior note, 8.00%, 9/15/14 ...................... United States 2,000,000 2,085,000
Nalco Co.,
senior note, 7.75%, 11/15/11 .......................................... United States 2,000,000 2,055,000
senior sub. note, 8.875%, 11/15/13 .................................... United States 2,000,000 2,127,500
Rhodia SA, senior note, 10.25%, 6/01/10 ................................. France 2,000,000 2,290,000
b,c Verso Paper Holdings LLC, senior note, 144A, FRN, 9.121%,
8/01/14 ............................................................... United States 2,000,000 2,040,000
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20,687,500
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PRODUCER MANUFACTURING 0.8%
Case New Holland Inc., senior note, 9.25%, 8/01/11 ...................... United States 3,000,000 3,191,250
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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 3,082,500
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RETAIL TRADE 1.1%
c GSC Holdings Corp., senior note, FRN, 9.247%, 10/01/11 .................. United States 2,000,000 2,085,000
b Michaels Stores Inc., senior note, 144A, 10.00%, 11/01/14 ............... United States 2,000,000 2,090,000
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4,175,000
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TECHNOLOGY SERVICES 1.1%
SunGard Data Systems Inc., senior note,
9.125%, 8/15/13 ....................................................... United States 1,000,000 1,055,000
c FRN, 9.973%, 8/15/13 .................................................. United States 3,000,000 3,131,250
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4,186,250
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UTILITIES 2.1%
Aquila Inc., senior note, 9.95%, 2/01/11 ................................ United States 2,000,000 2,200,594
NRG Energy Inc., senior note, 7.25%, 2/01/14 ............................ United States 2,800,000 2,828,000
TXU Corp., 4.80%, 11/15/09 .............................................. United States 3,000,000 2,942,817
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7,971,411
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TOTAL CORPORATE BONDS (COST $180,118,977) ............................... 184,530,629
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MORTGAGE-BACKED SECURITIES 33.2%
c FEDERAL HOME LOAN MORTGAGE CORP. (FHLMC) ADJUSTABLE RATE 0.6%
FHLMC, 3.338%, 5/01/34 .................................................. United States 2,270,734 2,289,135
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Quarterly Statement of Investments | 5
Franklin Templeton
Limited Duration Income Trust
STATEMENT OF INVESTMENTS, DECEMBER 31, 2006 (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 9.3%
FHLMC Gold 15 Year, 4.50%, 6/01/18 - 9/01/18 ............................ United States 3,141,146 $ 3,036,635
FHLMC Gold 15 Year, 5.00%, 9/01/18 ...................................... United States 4,331,728 4,266,679
FHLMC Gold 15 Year, 5.00%, 11/01/18 ..................................... United States 2,470,294 2,433,197
FHLMC Gold 15 Year, 5.50%, 7/01/19 ...................................... United States 320,439 320,596
FHLMC Gold 30 Year, 5.50%, 8/01/33 ...................................... United States 5,385,681 5,335,848
FHLMC Gold 30 Year, 5.50%, 12/01/34 ..................................... United States 1,575,066 1,559,801
FHLMC Gold 30 Year, 5.50%, 2/01/35 - 2/01/35 ............................ United States 1,423,616 1,409,254
FHLMC Gold 30 Year, 6.00%, 7/01/28 - 4/01/35 ............................ United States 8,954,668 9,037,753
FHLMC Gold 30 Year, 6.50%, 1/01/35 ...................................... United States 3,626,010 3,697,899
FHLMC Gold 30 Year, 7.00%, 9/01/27 ...................................... United States 1,098,499 1,134,087
FHLMC Gold 30 Year, 8.00%, 1/01/31 ...................................... United States 230,284 242,076
FHLMC Gold 30 Year, 8.50%, 7/01/31 ...................................... United States 2,626,502 2,822,878
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35,296,703
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c FEDERAL NATIONAL MORTGAGE ASSOCIATION (FNMA) ADJUSTABLE RATE 0.7%
FNMA, 4.611%, 7/01/34 ................................................... United States 2,530,117 2,507,433
FNMA, 5.989%, 6/01/32 ................................................... United States 107,973 109,345
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2,616,778
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FEDERAL NATIONAL MORTGAGE ASSOCIATION (FNMA) FIXED RATE 18.4%
FNMA 15 Year, 5.00%, 10/01/17 ........................................... United States 1,821,519 1,796,935
FNMA 15 Year, 5.50%, 10/01/17 - 1/01/21 ................................. United States 6,189,935 6,198,598
FNMA 15 Year, 5.50%, 1/01/21 ............................................ United States 4,099,284 4,099,968
FNMA 15 Year, 6.00%, 9/01/21 ............................................ United States 5,709,298 5,791,488
FNMA 15 Year, 6.50%, 7/01/20 ............................................ United States 1,304,461 1,320,907
FNMA 15 Year, 7.00%, 9/01/18 ............................................ United States 418,538 433,967
FNMA 30 Year, 5.50%, 8/01/33 - 7/01/35 .................................. United States 6,521,186 6,453,150
FNMA 30 Year, 5.50%, 9/01/33 ............................................ United States 4,583,761 4,538,468
FNMA 30 Year, 5.50%, 7/01/35 - 1/01/36 .................................. United States 3,886,419 3,843,245
FNMA 30 Year, 6.00%, 4/01/33 - 11/01/35 ................................. United States 9,535,927 9,612,512
FNMA 30 Year, 6.00%, 12/01/34 - 1/01/36 ................................. United States 2,936,821 2,958,579
FNMA 30 Year, 6.50%, 8/01/32 - 6/01/36 .................................. United States 10,630,646 10,841,570
FNMA 30 Year, 6.50%, 6/01/36 ............................................ United States 10,718,083 10,923,513
FNMA 30 Year, 8.00%, 10/01/29 ........................................... United States 377,023 398,492
FNMA 30 Year, 8.50%, 8/01/26 ............................................ United States 608,586 652,833
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69,864,225
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GOVERNMENT NATIONAL MORTGAGE ASSOCIATION (GNMA) FIXED RATE 4.2%
GNMA I SF 30 Year, 5.50%, 4/15/33 - 12/15/34 ............................ United States 2,909,422 2,898,930
GNMA I SF 30 Year, 5.50%, 12/15/34 ...................................... United States 4,272,814 4,256,261
GNMA I SF 30 Year, 6.50%, 6/15/31 - 12/15/33 ............................ United States 2,780,992 2,858,035
GNMA II SF 30 Year, 5.00%, 10/20/33 ..................................... United States 3,740,884 3,628,623
GNMA II SF 30 Year, 7.00%, 1/20/24 - 12/20/30 ........................... United States 1,645,885 1,695,054
GNMA II SF 30 Year, 8.00%, 1/20/28 - 2/20/32 ............................ United States 573,632 605,744
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15,942,647
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TOTAL MORTGAGE-BACKED SECURITIES (COST $127,364,355) .................... 126,009,488
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6 | Quarterly Statement of Investments
Franklin Templeton
Limited Duration Income Trust
STATEMENT OF INVESTMENTS, DECEMBER 31, 2006 (UNAUDITED) (CONTINUED)
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COUNTRY PRINCIPAL AMOUNT a VALUE
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LONG TERM INVESTMENTS (CONTINUED)
c ASSET-BACKED SECURITIES AND COMMERCIAL MORTGAGE-BACKED
SECURITIES 6.5%
FINANCE 6.5%
Argent Securities Inc., 2003-W5, M4, FRN, 9.135%, 10/25/33 .............. United States 4,000,000 $ 4,082,066
GSR Mortgage Trust, 2003-AHL, B1, FRN, 9.35%, 10/25/33 .................. United States 3,403,122 3,431,016
Merrill Lynch Mortgage Investors Inc., 2003-OPT1, B2, FRN, 8.10%,
7/25/34 ............................................................... United States 1,000,000 1,007,568
Morgan Stanley ABS Capital,
2003-NC10, B1, FRN, 8.65%, 10/25/33 ................................. United States 793,271 800,209
2003-HE3, B1, FRN, 8.65%, 10/25/33 .................................. United States 3,500,000 3,515,996
Morgan Stanley Dean Witter Capital I, 2003-NC3, B1, FRN, 8.35%,
3/25/33 ............................................................... United States 878,513 880,946
New Century Home Equity Loan Trust, 2003-2, M3, FRN, 9.05%,
1/25/33 ............................................................... United States 3,703,060 3,711,110
Option One Mortgage Loan Trust, 2003-6, M5, FRN, 8.65%,
11/25/33 .............................................................. United States 1,807,184 1,830,406
Residential Asset Securities Corp., 2003-KS10, MII3, FRN, 7.90%,
12/25/33 .............................................................. United States 377,442 381,509
Specialty Underwriting & Residential Finance, 2003-BC4, B2, FRN,
7.85%, 11/25/34 ....................................................... United States 1,500,000 1,512,087
Structured Asset Investment Loan Trust,
2003-BC13, M4, FRN, 8.10%, 11/25/33 ................................. United States 3,340,000 3,363,910
2003-BC2, M3, FRN, 8.60%, 4/25/33 ................................... United States 13,987 14,012
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TOTAL ASSET-BACKED SECURITIES AND COMMERCIAL MORTGAGE-BACKED
SECURITIES (COST $24,143,645).......................................... 24,530,835
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c SENIOR FLOATING RATE INTERESTS 51.6%
COMMERCIAL SERVICES 5.9%
Acxiom Corp., Term Loan B, 7.10% - 7.11%, 9/14/12 ....................... United States 1,197,000 1,201,932
Affiliated Computer Services Inc.,
Additional Term Loan, 7.35% - 7.369%, 3/20/13 ....................... United States 1,791,000 1,795,298
Term Loan B, 7.35%, 3/20/13 ......................................... United States 495,000 496,188
Buhrmann U.S. Inc., Term Loan D-1 Anton, 7.111%, 12/23/10 ............... United States 2,500,000 2,503,275
Dealer Computer Services Inc. (Reynolds & Reynolds), First Lien Term
Loan, 7.85%, 10/26/12 ................................................. United States 1,695,750 1,706,501
Dex Media West LLC, Term Loan B2, 6.86% - 6.88%, 3/09/10................. United States 2,571,017 2,557,056
Emdeon Business Services LLC, First Lien Term Loan, 7.87%,
11/16/13 .............................................................. United States 2,750,000 2,760,038
Nielsen Finance LLC (VNU Inc.), Term Loan B, 8.19%, 8/09/13 ............. United States 2,992,500 3,014,854
IDEARC Inc. (Verizon Corp.), Term Loan B, 7.35%, 11/17/14 ............... United States 3,100,000 3,116,523
R.H. Donnelley Inc., Term Loan D-2, 6.85% - 6.87%, 6/30/11 .............. United States 1,441,522 1,440,959
Workflow Management Inc., Term Loan B, 9.376%, 11/30/11 ................. United States 972,662 972,088
Worldspan LP, Term Loan B, 8.60%, 12/07/13 .............................. United States 900,000 904,653
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22,469,365
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Quarterly Statement of Investments | 7
Franklin Templeton
Limited Duration Income Trust
STATEMENT OF INVESTMENTS, DECEMBER 31, 2006 (UNAUDITED) (CONTINUED)
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COUNTRY PRINCIPAL AMOUNT a VALUE
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LONG TERM INVESTMENTS (CONTINUED)
c SENIOR FLOATING RATE INTERESTS (CONTINUED)
COMMUNICATIONS 4.9%
Alaska Communications Systems Holdings Inc.,
Incremental Term Loan, 7.114%, 2/01/12 .............................. United States 100,000 $ 99,864
Term Loan, 7.114%, 2/01/12 .......................................... United States 4,000,000 3,994,560
Fairpoint Communications Inc., Term Loan B, 7.125%, 2/08/12 ............. United States 1,404,110 1,400,360
Intelsat Corp. (Panamsat), Term Loan B2, 7.872%, 1/03/14 ................ United States 3,940,000 3,969,432
Intelsat Subsidiary Holding Co. Ltd., Term Loan B, 7.622%,
6/30/13 ............................................................... United States 2,400,689 2,410,412
Iowa Telecommunications Services Inc., Term Loan B, 7.08% - 7.12%,
11/23/11 .............................................................. United States 2,000,000 2,003,080
West Corp., Term Loan B, 8.10%, 10/24/13 ................................ United States 1,900,000 1,903,819
Windstream Corp., Term Loan B, 7.12%, 7/17/13 ........................... United States 2,700,000 2,722,302
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18,503,829
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CONSUMER DURABLES 2.9%
Eastman Kodak Co.,
Term Loan B1, 7.60%, 10/18/12 ......................................... United States 1,262,434 1,266,954
Term Loan B2 (Delayed Draw), 7.60%, 10/18/12 .......................... United States 965,741 969,247
Jarden Corp., Term Loan B2, 7.114%, 1/24/12 ............................. United States 3,562,389 3,566,628
Stile Acquisition Corp. (Masonite), Canadian Term Loan,
7.364% - 7.38%, 4/05/13 ............................................... Canada 1,818,545 1,789,830
Stile U.S. Acquisition Corp. (Masonite), U.S. Term Loan,
7.364% - 7.38%, 4/05/13 ............................................... United States 1,821,643 1,792,879
Tupperware Corp., Term Loan B, 6.86%, 12/05/12 .......................... United States 1,796,639 1,787,889
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11,173,427
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CONSUMER NON-DURABLES 2.6%
Acco Brands Corp., Term Loan B, 7.058% - 7.124%, 8/17/12 ................ United States 902,180 902,577
Bumble Bee Foods LLC, Term Loan B, 7.121% - 7.125%, 5/02/12 ............. United States 500,000 499,965
CBRL Group (Cracker Barrel), Term Loan B1, 6.85% - 6.87%,
4/27/13 ............................................................... United States 860,494 860,915
Central Garden & Pet Co., Term Loan B, 6.85%, 9/30/12 ................... United States 271,289 271,658
Constellation Brands Inc., Term Loan B, 6.875%, 6/05/13 ................. United States 1,333,333 1,338,867
Del Monte Foods Co., Term Loan B, 6.85% - 7.072%, 2/08/12 ............... United States 828,219 828,558
Dole Food Co. Inc., Term Loan B, 7.438% - 9.00%, 4/12/13 ................ United States 213,492 210,303
Herbalife International Inc., Term Loan B, 6.85%, 7/21/13 ............... United States 718,000 718,790
Michael Foods Inc., Term Loan B1, 7.35%, 11/21/10 ....................... United States 564,740 564,711
Reynolds American Inc., Term Loan B, 7.104% - 7.188%, 5/31/12 ........... United States 1,791,000 1,801,746
Solvest Ltd. (Dole),
L/C, 5.244%, 4/12/13 ................................................ Bermuda 95,362 93,937
Term Loan C, 7.438% - 9.25%, 4/12/13 ................................ Bermuda 709,853 699,248
Southern Wine & Spirits of America Inc., Term Loan B, 6.864%,
5/31/12 ............................................................... United States 1,145,813 1,146,821
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9,938,096
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8 | Quarterly Statement of Investments
Franklin Templeton
Limited Duration Income Trust
STATEMENT OF INVESTMENTS, DECEMBER 31, 2006 (UNAUDITED) (CONTINUED)
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COUNTRY PRINCIPAL AMOUNT a VALUE
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LONG TERM INVESTMENTS (CONTINUED)
c SENIOR FLOATING RATE INTERESTS (CONTINUED)
CONSUMER SERVICES 10.0%
Arby's Restaurant Holdings LLC, Term Loan B, 7.60% - 7.626%,
7/25/12 ............................................................... United States 1,579,798 $ 1,579,798
Charter Communications Operating LLC, Term Loan B, 8.005%,
4/28/13 ............................................................... United States 1,362,560 1,371,512
Cinram International, Term Loan B, 7.118%, 5/05/11 ...................... Canada 2,566,612 2,535,428
CSC Holdings Inc. (Cablevision), Incremental Term Loan,
7.11% - 7.126%, 3/29/13 ............................................... United States 796,000 796,279
DIRECTV Holdings LLC, Term Loan B, 6.85%, 4/13/13 ....................... United States 1,124,769 1,124,612
Education Management LLC, Term Loan B, 7.875%, 5/31/13 .................. United States 1,695,750 1,708,451
Entravision Communications Corp., Term Loan B, 6.87%, 3/29/13 ........... United States 1,083,500 1,076,392
Hertz Corp.,
Credit Link, 5.365%, 12/21/12 ....................................... United States 155,556 156,526
Term Loan B, 7.35% - 7.37%, 12/21/12 ................................ United States 1,235,911 1,243,623
Insight Midwest Holdings,
Delayed Draw Term Loan, 7.61%, 4/02/14 .............................. United States 800,000 805,256
Term Loan B, 7.61%, 4/02/14 ......................................... United States 2,400,000 2,415,768
MCC Iowa, Term Loan D-1, 6.87% - 7.12%, 1/31/15 ......................... United States 1,980,000 1,983,663
MediaNews Group Inc., Term Loan B, 6.60%, 12/30/10 ...................... United States 2,260,575 2,232,544
Mission Broadcasting Inc., Term Loan B, 7.114%, 10/01/12 ................ United States 1,681,393 1,675,659
Nexstar Broadcasting Inc., Term Loan B, 7.114%, 10/01/12 ................ United States 1,593,264 1,587,831
Penn National Gaming Inc., Term Loan B, 7.10% - 7.15%,
10/03/12 .............................................................. United States 1,777,500 1,784,770
Regal Cinemas Inc., Term Loan, 7.114%, 10/27/13 ......................... United States 3,846,766 3,846,612
UPC Financing Partnership,
Term Loan J2, 7.64%, 3/31/13 ........................................ Netherlands 2,000,000 2,008,660
Term Loan K2, 7.64%, 12/31/13 ....................................... Netherlands 2,000,000 2,008,660
VML US Finance LLC (Venetian Macau), Term Loan B, 8.12%,
5/26/13 ............................................................... United States 2,333,333 2,343,297
WMG Acquisition Corp. (Warner Music), Term Loan B,
7.37% - 7.409%, 3/01/11 ............................................... United States 3,855,251 3,869,978
--------------
38,155,319
--------------
ELECTRONIC TECHNOLOGY 1.8%
Advanced Micro Devices Inc., Term Loan B, 7.62%, 12/31/13 ............... United States 2,038,936 2,053,392
Marvell Technology Group Ltd., Term Loan, 7.35%, 11/09/09 ............... Bermuda 3,190,000 3,195,423
Onex Wind Finance LP (Mid-Western Aircraft), Term Loan B, 7.11%,
12/31/11 .............................................................. United States 717,210 720,746
Sanmina-SCI Corp., Term Loan, 7.88%, 1/31/08 ............................ United States 900,000 902,322
--------------
6,871,883
--------------
ENERGY MINERALS 0.4%
Citgo Petroleum Corp., Term Loan B, 6.742%, 11/15/12 .................... United States 1,561,877 1,562,830
--------------
Quarterly Statement of Investments | 9
Franklin Templeton
Limited Duration Income Trust
STATEMENT OF INVESTMENTS, DECEMBER 31, 2006 (UNAUDITED) (CONTINUED)
-----------------------------------------------------------------------------------------------------------------------------------
COUNTRY PRINCIPAL AMOUNT a VALUE
-----------------------------------------------------------------------------------------------------------------------------------
LONG TERM INVESTMENTS (CONTINUED)
c SENIOR FLOATING RATE INTERESTS (CONTINUED)
FINANCE 2.5%
Ameritrade Holding Corp., Term Loan B, 6.85%, 12/31/12 .................. United States 1,865,659 $ 1,864,913
Avis Budget Car Rental LLC, Term Loan, 6.63%, 4/19/12 ................... United States 957,143 950,778
Conseco Inc., Term Loan, 7.35%, 10/10/13................................. United States 399,000 400,656
Fidelity National Information Services Inc., Term Loan B, 7.10%,
3/08/13 ............................................................... United States 3,755,299 3,756,951
Nasdaq Stock Market Inc.,
Incremental Term Loan B, 7.10% - 7.114%, 4/18/12 .................... United States 698,250 699,423
Term Loan B, 7.10% - 7.114%, 4/18/12 ................................ United States 1,217,179 1,219,309
Term Loan C (Delayed Draw), 7.10% - 7.114%, 4/18/12 ................. United States 705,570 706,805
--------------
9,598,835
--------------
HEALTH SERVICES 3.1%
DaVita Inc., Term Loan B, 7.35% - 7.69%, 10/05/12 ....................... United States 3,348,930 3,362,259
Fresenius Medical Care Holdings Inc., Term Loan B, 6.739% - 6.745%,
3/31/13 ............................................................... United States 2,481,250 2,470,308
HCA Inc., Term Loan B, 8.114%, 11/18/13 ................................. United States 3,000,000 3,034,710
LifePoint Hospitals Inc., Term Loan B, 6.975%, 4/15/12 .................. United States 2,893,383 2,886,265
--------------
11,753,542
--------------
INDUSTRIAL SERVICES 0.7%
Allied Waste North America Inc.,
Credit Link, 5.323%, 1/15/12 ........................................ United States 764,558 765,216
Term Loan B, 7.12% - 7.21%, 1/15/12 ................................. United States 1,724,104 1,725,586
--------------
2,490,802
--------------
PROCESS INDUSTRIES 5.7%
Berry Plastics Holding Corp., Term Loan B, 7.124%, 9/20/13 .............. United States 1,007,475 1,008,493
Georgia-Pacific Corp.,
d Additional Term Loan, 8.25%, 12/20/12 ............................... United States 694,444 695,437
Term Loan B, 7.353% - 7.376%, 12/20/12 .............................. United States 2,475,000 2,489,182
Graham Packaging Co.,
First Lien Term Loan, 7.625% - 7.875%, 10/07/11 ..................... United States 1,669,777 1,684,137
Incremental Term Loan B, 7.688%, 10/07/11 ........................... United States 368,608 371,641
Hexion Specialty Chemicals BV, Term Loan C-2, 7.875%, 5/03/13 ........... Netherlands 622,545 620,665
Hexion Specialty Chemicals Inc., Term Loan C-1, 7.875%, 5/03/13 ......... United States 2,873,056 2,864,379
Huntsman International LLC, Term Loan B, 7.10%, 8/16/12.................. United States 3,019,476 3,020,774
Ineos U.S. Finance LLC,
Term Loan B2, 7.611%, 12/16/13 ...................................... United States 396,000 399,453
Term Loan C2, 8.111%, 12/23/14 ...................................... United States 396,000 399,497
Lyondell Chemical Co., Term Loan, 7.121%, 8/16/13 ....................... United States 2,693,250 2,698,556
Nalco Co., Term Loan B, 7.10% - 9.00%, 11/04/10 ......................... United States 3,406,839 3,422,034
NewPage Corp., Term Loan, 8.364% - 10.25%, 5/02/11 ...................... United States 2,096,482 2,108,851
--------------
21,783,099
--------------
10 | Quarterly Statement of Investments
Franklin Templeton
Limited Duration Income Trust
STATEMENT OF INVESTMENTS, DECEMBER 31, 2006 (UNAUDITED) (CONTINUED)
-----------------------------------------------------------------------------------------------------------------------------------
COUNTRY PRINCIPAL AMOUNT a VALUE
-----------------------------------------------------------------------------------------------------------------------------------
LONG TERM INVESTMENTS (CONTINUED)
c SENIOR FLOATING RATE INTERESTS (CONTINUED)
PRODUCER MANUFACTURING 5.2%
Cooper Standard Automotive Inc., Term Loan D, 7.875%,
12/23/11 .............................................................. United States 891,000 $ 889,975
Day International Group Inc., Term Loan B, 7.86%, 12/05/12 .............. United States 671,730 676,123
Dresser Inc., Term Loan B, 8.125%, 10/31/13 ............................. United States 1,923,567 1,943,457
Euramax International Inc., Domestic Term Loan, 8.125%, 6/29/12 ......... United States 1,040,916 1,041,895
GPS CCMP Merger Corp. (Generac), Term Loan B, 7.82%,
11/09/13 .............................................................. United States 1,800,000 1,808,388
Headwaters Inc., Term Loan B, 7.38%, 4/30/11 ............................ United States 823,404 823,601
Nortek Inc., Term Loan, 7.36%, 8/27/11 .................................. United States 1,959,900 1,961,252
Oshkosh Truck Co., Term Loan B, 7.35%, 12/06/13 ......................... United States 2,900,000 2,909,425
Sensus Metering Systems Inc.,
Term Loan B1, 7.371% - 7.583%, 12/17/10 ............................. United States 2,341,615 2,336,955
Term Loan B2, 7.371% - 7.583%, 12/17/10 ............................. Luxembourg 311,036 310,311
TriMas Co. LLC,
Term Loan B, 8.125%, 2/28/12 ........................................ United States 1,612,882 1,620,173
Tranche B-1 L/C, 8.118%, 8/02/13 .................................... United States 373,136 374,674
TRW Automotive Inc., Term Loan B, 7.188%, 6/30/12 ....................... United States 2,947,500 2,936,830
--------------
19,633,059
--------------
REAL ESTATE INVESTMENT TRUSTS 2.6%
Capital Automotive REIT, Term Loan B, 7.10%, 12/10/10 ................... United States 2,707,065 2,713,481
CB Richard Ellis Services Inc., Term Loan B, 6.85%, 12/20/13 ............ United States 2,900,000 2,900,174
General Growth Properties Inc., Term Loan A-1, 6.60%, 2/24/10 ........... United States 3,500,000 3,472,385
Lion Gables Realty LP, Term Loan B, 7.10%, 3/30/07 ...................... United States 26,842 26,837
Newkirk Master LP, Term Loan B, 7.099%, 8/11/08 ......................... United States 637,043 636,342
--------------
9,749,219
--------------
RETAIL TRADE 1.3%
Neiman Marcus Group Inc., Term Loan, 7.60% - 7.603%, 4/06/13 ............ United States 1,139,241 1,146,953
Pantry Inc., Term Loan, 7.10%, 1/02/12 .................................. United States 631,619 635,352
TravelCenters of America Inc., Term Loan, 7.10%, 12/01/11 ............... United States 2,475,000 2,489,256
The William Carter Co., Term Loan B, 6.85% - 6.876%, 7/14/12 ............ United States 690,064 689,498
--------------
4,961,059
--------------
TECHNOLOGY SERVICES 0.8%
SunGard Data Systems Inc., Term Loan, 7.875%, 2/11/13 ................... United States 2,840,740 2,870,767
--------------
TRANSPORTATION 0.1%
United Air Lines Inc.,
Delay Draw, 9.125%, 2/01/12 ......................................... United States 60,844 61,725
Term Loan B, 9.12%, 2/01/12 ......................................... United States 425,909 432,076
--------------
493,801
--------------
UTILITIES 1.1%
LSP General Finance Co. LLC,
Delay Draw, 7.114%, 5/04/13 ......................................... United States 27,754 27,737
Term Loan, 7.114%, 5/04/13 .......................................... United States 645,114 644,694
Quarterly Statement of Investments | 11
Franklin Templeton
Limited Duration Income Trust
STATEMENT OF INVESTMENTS, DECEMBER 31, 2006 (UNAUDITED) (CONTINUED)
-----------------------------------------------------------------------------------------------------------------------------------
COUNTRY PRINCIPAL AMOUNT a VALUE
-----------------------------------------------------------------------------------------------------------------------------------
LONG TERM INVESTMENTS (CONTINUED)
c SENIOR FLOATING RATE INTERESTS (CONTINUED)
UTILITIES (CONTINUED)
NRG Energy Inc.,
Credit Link, 7.364%, 2/01/13 ........................................ United States 798,351 $ 802,223
Term Loan B, 7.364%, 2/01/13 ........................................ United States 2,641,075 2,653,911
--------------
4,128,565
--------------
TOTAL SENIOR FLOATING RATE INTERESTS (COST $195,985,224) ................ 196,137,497
--------------
FOREIGN GOVERNMENT AND AGENCY SECURITIES 3.9%
c,e Government of Argentina, FRN, 5.59%, 8/03/12 ............................ Argentina 3,950,000 2,809,142
Government of Canada, 7.25%, 6/01/07 .................................... Canada 1,500,000 CAD 1,303,072
Government of Malaysia, 8.60%, 12/01/07 ................................. Malaysia 4,700,000 MYR 1,392,537
Government of Norway, 6.75%, 1/15/07 .................................... Norway 8,300,000 NOK 1,332,383
Government of Poland, 6.00%, 5/24/09 .................................... Poland 4,200,000 PLN 1,491,146
Government of Singapore, 5.625%, 7/01/08 ................................ Singapore 2,150,000 SGD 1,455,861
Government of Sweden, 8.00%, 8/15/07 .................................... Sweden 8,300,000 SEK 1,244,903
Korea Treasury Note, 4.75%, 3/12/08 ..................................... South Korea 3,600,000,000 KRW 3,859,386
--------------
TOTAL FOREIGN GOVERNMENT AND AGENCY SECURITIES
(COST $14,211,342) .................................................... 14,888,430
--------------
TOTAL LONG TERM INVESTMENTS (COST $541,823,543) ......................... 546,096,879
--------------
SHORT TERM INVESTMENTS 2.6%
GOVERNMENT BONDS 1.4%
f Egypt Treasury Bill, 6/19/07 - 11/20/07 Egypt 9,250,000 EGP 1,493,880
f Thailand Treasury Bill, 7/19/07 - 9/06/07 Thailand 132,200,000 THB 3,621,866
--------------
5,115,746
--------------
12 | Quarterly Statement of Investments
Franklin Templeton
Limited Duration Income Trust
STATEMENT OF INVESTMENTS, DECEMBER 31, 2006 (UNAUDITED) (CONTINUED)
-----------------------------------------------------------------------------------------------------------------------------------
COUNTRY SHARES VALUE
-----------------------------------------------------------------------------------------------------------------------------------
SHORT TERM INVESTMENTS (CONTINUED)
MONEY MARKET FUND 1.2%
g Franklin Institutional Fiduciary Trust Money Market Portfolio,
4.97% ................................................................. United States 4,669,027 $ 4,669,027
--------------
TOTAL SHORT TERM INVESTMENTS (COST $9,575,917) .......................... 9,784,773
--------------
TOTAL INVESTMENTS (COST $551,399,460) 146.4% ............................ 555,881,652
PREFERRED SHARES (50.0)% ................................................ (190,000,000)
OTHER ASSETS, LESS LIABILITIES 3.6% ..................................... 13,881,561
--------------
NET ASSETS APPLICABLE TO COMMON SHARES 100.0% ........................... $ 379,763,213
==============
CURRENCY ABBREVIATIONS
CAD - Canadian Dollar
EGP - Egyptian Pounds
KRW - South Korean Won
MYR - Malaysian Ringgit
NOK - Norwegian Krone
PLN - Polish Zloty
SEK - Swedish Krona
SGD - Singapore Dollar
THB - Thai Baht
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
REIT - Real Estate Investment Trust
SF - Single Family
a The principal amount is stated in U.S. dollars unless otherwise indicated.
b 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, 2006,
the aggregate value of these securities was $20,074,875, representing
5.29% of net assets.
c The coupon rate shown represents the rate at period end.
d Security purchased on a when-issued 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)
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.
1. INCOME TAXES
At December 31, 2006, the cost of investments and net unrealized appreciation
(depreciation) for income tax purposes were as follows:
Cost of investments....................................... $ 553,027,405
===============
Unrealized appreciation................................... $ 7,204,011
Unrealized depreciation................................... (4,349,764)
---------------
Net unrealized appreciation (depreciation)................ $ 2,854,247
===============
2. UNFUNDED LOAN COMMITMENTS
The Fund may enter into certain credit agreements, all or a portion of which may
be unfunded. The Fund is obligated to fund these loan commitments at the
borrowers' discretion. Funded portions of credit agreements are presented on the
Statement of Investments.
At December 31, 2006, unfunded commitments were as follows:
-----------------------------------------------------------------------------
UNFUNDED
BORROWER COMMITMENT
-----------------------------------------------------------------------------
CBRL Group (Cracker Barrel), Term Loan B2
(Delayed Draw).......................................... $ 134,276
VML US Finance LLC (Venetian Macau US), Delay Draw........ 1,166,667
-----------
$ 1,300,943
===========
For information on the Fund's policy regarding valuation of investments and
other significant accounting policies, please refer to the Fund's most recent
semiannual or annual shareholder report.
14 | Quarterly Statement of Investments
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 February 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 February 27, 2007
By /S/GALEN G. VETTER
------------------
Galen G. Vetter
Chief Financial Officer
Date February 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.
February 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.
February 27, 2007
/S/GALEN G. VETTER
Galen G. Vetter
Chief Financial Officer