FORM N-Q
QUARTERLY SCHEDULE OF PORTFOLIO HOLDINGS OF
REGISTERED MANAGEMENT INVESTMENT COMPANY
Investment Company Act file number 811-21357
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FRANKLIN TEMPLETON LIMITED DURATION INCOME TRUST
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(Exact name of registrant as specified in charter)
ONE FRANKLIN PARKWAY, SAN MATEO, CA 94403-1906
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(Address of principal executive offices) (Zip code)
CRAIG S. TYLE, ONE FRANKLIN PARKWAY, SAN MATEO, CA 94403-1906
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(Name and address of agent for service)
Registrant's telephone number, including area code: 650 312-2000
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Date of fiscal year end: 3/31
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Date of reporting period: 6/30/06
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Item 1. Schedule of Investments.
Franklin Templeton
Limited Duration Income Trust
QUARTERLY STATEMENT OF INVESTMENTS
JUNE 30, 2006
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CONTENTS
Statement of Investments ................................................... 3
Notes to Statement of Investments .......................................... 13
[LOGO](R)
FRANKLIN TEMPLETON
INVESTMENTS
FRANKLIN o Templeton o Mutual Series
Quarterly Statement of Investments | 1
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Franklin Templeton
Limited Duration Income Trust
STATEMENT OF INVESTMENTS, JUNE 30, 2006 (UNAUDITED)
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COUNTRY PRINCIPAL AMOUNT d VALUE
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CORPORATE BONDS 50.2%
COMMERCIAL SERVICES 2.9%
Dex Media West LLC, senior sub. note, 9.875%, 8/15/13 .......... United States 4,000,000 $ 4,354,980
JohnsonDiversey Holdings Inc., senior disc. note, zero cpn. to
5/17/07, 10.67% thereafter, 5/15/13 ........................... United States 4,300,000 3,676,500
United Rentals North America Inc., senior sub. note, 7.75%,
11/15/13 ...................................................... United States 3,000,000 2,865,000
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10,896,480
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COMMUNICATIONS 6.5%
Dobson Cellular Systems Inc., senior secured note, 9.875%,
11/01/12 ...................................................... United States 3,000,000 3,180,000
a Intelsat Bermuda Ltd., senior note, FRN, 9.614%, 1/15/12 ....... Bermuda 4,000,000 4,060,000
Millicom International Cellular SA, senior note, 10.00%,
12/01/13 ...................................................... Luxembourg 3,000,000 3,360,000
b Nordic Telephone Co. Holdings, senior note, 144A, 8.875%,
5/01/16 ....................................................... Denmark 500,000 516,250
Qwest Communications International Inc., senior note, B, 7.50%,
2/15/14 ....................................................... United States 3,000,000 2,940,000
a Rogers Wireless Communications Inc., senior secured note, FRN,
8.454%, 12/15/10 .............................................. Canada 3,000,000 3,101,250
Time Warner Telecom Holdings Inc., senior note, 9.25%, 2/15/14 . United States 900,000 927,000
b Wind Acquisition Finance SA, senior note, 144A, 10.75%, 12/01/15 Italy 3,000,000 3,202,500
b,c Windstream Corp., senior note, 144A, 8.625%, 8/01/16 ........... United States 2,800,000 2,877,000
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24,164,000
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CONSUMER DURABLES 4.4%
Beazer Homes USA Inc., senior note, 8.375%, 4/15/12 ............ United States 2,000,000 2,010,000
Ford Motor Credit Co., 5.625%, 10/01/08 ........................ United States 4,000,000 3,702,136
General Motors Acceptance Corp.,
7.25%, 3/02/11 .............................................. United States 2,000,000 1,940,892
6.875%, 8/28/12 ............................................. United States 3,500,000 3,301,616
Jostens IH Corp., senior sub. note, 7.625%, 10/01/12 ........... United States 600,000 585,000
KB Home, 6.375%, 8/15/11 ....................................... United States 4,000,000 3,829,888
Simmons Bedding Co., senior sub. note, 7.875%, 1/15/14 ......... United States 1,000,000 940,000
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16,309,532
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CONSUMER NON-DURABLES 3.4%
a,b Nutro Products Inc., senior note, 144A, FRN, 9.23%, 10/15/13 ... United States 1,000,000 1,023,750
b Reynolds American Inc., 144A, 7.25%, 6/01/13 ................... United States 2,000,000 1,965,000
Smithfield Foods Inc., senior note, 8.00%, 10/15/09 ............ United States 4,000,000 4,060,000
Spectrum Brands Inc., senior sub. note, 8.50%, 10/01/13 ........ United States 3,000,000 2,580,000
Tyson Foods Inc., senior note, 8.25%, 10/01/11 ................. United States 3,000,000 3,179,352
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12,808,102
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CONSUMER SERVICES 10.7%
a AMC Entertainment Inc., senior note, FRN, 9.42%, 8/15/10 ....... United States 3,000,000 3,105,000
Boyd Gaming Corp., senior sub. note, 8.75%, 4/15/12 ............ United States 2,000,000 2,105,000
CanWest Media Inc., senior sub. note, 8.00%, 9/15/12 ........... Canada 3,000,000 2,985,000
CCH II LLC, senior note, 10.25%, 9/15/10 ....................... United States 4,000,000 4,030,000
Clear Channel Communications Inc., senior note, 7.65%, 9/15/10 . United States 4,000,000 4,175,524
CSC Holdings Inc., senior note, 8.125%, 7/15/09 ................ United States 3,000,000 3,067,500
DIRECTV Holdings LLC, senior note, 8.375%, 3/15/13 ............. United States 2,000,000 2,105,000
Liberty Media Corp., senior note, 7.875%, 7/15/09 .............. United States 3,000,000 3,120,831
Quarterly Statement of Investments | 3
Franklin Templeton
Limited Duration Income Trust
STATEMENT OF INVESTMENTS, JUNE 30, 2006 (UNAUDITED) (CONTINUED)
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COUNTRY PRINCIPAL AMOUNT d VALUE
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CORPORATE BONDS (CONTINUED)
CONSUMER SERVICES (CONTINUED)
LIN Television Corp., senior sub. note, 6.50%, 5/15/13 ......... United States 4,000,000 $ 3,670,000
b MGM MIRAGE Inc., senior note, 144A, 6.75%, 4/01/13 ............. United States 4,000,000 3,835,000
Pinnacle Entertainment Inc., senior sub. note, 8.75%, 10/01/13 . United States 3,000,000 3,210,000
b Quebecor Media Inc., senior note, 144A, 7.75%, 3/15/16 ......... Canada 1,000,000 985,000
Royal Caribbean Cruises Ltd., senior note, 8.00%, 5/15/10 ...... United States 3,000,000 3,151,491
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39,545,346
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ELECTRONIC TECHNOLOGY 1.6%
Sanmina-SCI Corp., senior sub. note, 6.75%, 3/01/13 ............ United States 3,000,000 2,812,500
b Solectron Global Finance Ltd., senior sub. note, 144A, 8.00%,
3/15/16 ....................................................... United States 3,000,000 2,970,000
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5,782,500
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ENERGY MINERALS 2.4%
Chesapeake Energy Corp., senior note, 7.50%, 6/15/14 ........... United States 4,000,000 4,010,000
b Mariner Energy Inc., senior note, 144A, 7.50%, 4/15/13 ......... United States 2,000,000 1,935,000
b Massey Energy Co., senior note, 144A, 6.875%, 12/15/13 ......... United States 2,000,000 1,870,000
b Pogo Producing Co., senior sub. note, 144A, 7.875%, 5/01/13 .... United States 1,200,000 1,209,000
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9,024,000
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HEALTH SERVICES 4.6%
DaVita Inc.,
senior note, 6.625%, 3/15/13 ................................ United States 1,900,000 1,814,500
senior sub. note, 7.25%, 3/15/15 ............................ United States 1,000,000 965,000
Fresenius Medical Care Capital Trust II, 7.875%, 2/01/08 ....... Germany 4,000,000 4,070,000
HCA Inc., senior note, 8.75%, 9/01/10 .......................... United States 3,000,000 3,177,795
Tenet Healthcare Corp., senior note, 6.375%, 12/01/11 .......... United States 3,500,000 3,141,250
Vanguard Health Holding Co. II LLC, senior sub. note, 9.00%,
10/01/14 ...................................................... United States 4,000,000 4,010,000
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17,178,545
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INDUSTRIAL SERVICES 1.4%
Allied Waste North America Inc., senior note, B, 8.50%, 12/01/08 United States 2,000,000 2,080,000
El Paso Natural Gas Co., senior note, A, 7.625%, 8/01/10 ....... United States 3,000,000 3,067,500
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5,147,500
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PROCESS INDUSTRIES 4.7%
Buckeye Technologies Inc., senior sub. note, 8.00%, 10/15/10 ... United States 1,400,000 1,288,000
b Crown Americas Inc., senior note, 144A, 7.625%, 11/15/13 ....... United States 3,000,000 2,962,500
Graphic Packaging International Corp., senior note, 8.50%,
8/15/11 ....................................................... United States 3,000,000 3,007,500
JSG Funding PLC, senior sub. note, 7.75%, 4/01/15 .............. Ireland 3,000,000 2,730,000
Nalco Co.,
senior note, 7.75%, 11/15/11 ................................ United States 2,000,000 2,005,000
senior sub. note, 8.875%, 11/15/13 .......................... United States 2,000,000 2,025,000
Rhodia SA, senior note, 10.25%, 6/01/10 ........................ France 3,000,000 3,217,500
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17,235,500
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4 | Quarterly Statement of Investments
Franklin Templeton
Limited Duration Income Trust
STATEMENT OF INVESTMENTS, JUNE 30, 2006 (UNAUDITED) (CONTINUED)
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COUNTRY PRINCIPAL AMOUNT d VALUE
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CORPORATE BONDS (CONTINUED)
PRODUCER MANUFACTURING 2.2%
Case New Holland Inc., senior note, 9.25%, 8/01/11 ............. United States 4,000,000 $ 4,230,000
b Invensys PLC, senior note, 144A, 9.875%, 3/15/11 ............... United Kingdom 3,000,000 3,270,000
Milacron Escrow Corp., senior secured note, 11.50%, 5/15/11 .... United States 600,000 558,000
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8,058,000
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REAL ESTATE INVESTMENT TRUST 1.1%
Host Marriott LP, senior note, 9.25%, 10/01/07 ................. United States 4,000,000 4,145,000
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RETAIL TRADE 0.8%
a GSC Holdings Corp., senior note, FRN, 8.865%, 10/01/11 ......... United States 3,000,000 3,097,500
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TECHNOLOGY SERVICES 1.1%
b SunGard Data Systems Inc., senior note, 144A,
a FRN, 9.431%, 8/15/13 ........................................ United States 3,000,000 3,153,750
9.125%, 8/15/13 ............................................. United States 1,000,000 1,042,500
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4,196,250
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UTILITIES 2.4%
Aquila Inc., senior note, 9.95%, 2/01/11 ....................... United States 2,000,000 2,261,230
b,e,f Calpine Corp., senior secured note, 144A, 8.50%, 7/15/10 ....... United States 1,100,000 1,039,500
NRG Energy Inc., senior note, 7.25%, 2/01/14 ................... United States 2,800,000 2,737,000
TXU Corp., 4.80%, 11/15/09 ..................................... United States 3,000,000 2,869,068
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8,906,798
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TOTAL CORPORATE BONDS (COST $187,185,076) ...................... 186,495,053
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MORTGAGE-BACKED SECURITIES 32.3%
a FEDERAL HOME LOAN MORTGAGE CORP. (FHLMC) ADJUSTABLE RATE 0.7%
FHLMC, 3.345%, 5/01/34 ......................................... United States 2,635,025 2,615,607
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FEDERAL HOME LOAN MORTGAGE CORP. (FHLMC) FIXED RATE 13.5%
FHLMC Gold 15 Year, 4.50%, 6/01/18 - 9/01/18 ................... United States 3,383,355 3,201,823
FHLMC Gold 15 Year, 5.00%, 9/01/18 ............................. United States 4,649,365 4,486,968
FHLMC Gold 15 Year, 5.00%, 11/01/18 ............................ United States 2,633,341 2,541,360
FHLMC Gold 15 Year, 5.50%, 7/01/19 ............................. United States 351,648 345,354
FHLMC Gold 30 Year, 5.00%, 8/01/33 - 6/01/34 ................... United States 8,920,936 8,370,001
FHLMC Gold 30 Year, 5.00%, 5/01/34 ............................. United States 4,269,977 4,001,890
FHLMC Gold 30 Year, 5.50%, 8/01/33 ............................. United States 5,769,692 5,567,988
FHLMC Gold 30 Year, 5.50%, 12/01/34 - 2/01/35 .................. United States 3,302,855 3,180,304
FHLMC Gold 30 Year, 6.00%, 7/01/28 - 4/01/35 ................... United States 9,643,335 9,522,500
FHLMC Gold 30 Year, 6.50%, 1/01/35 ............................. United States 4,118,931 4,146,124
FHLMC Gold 30 Year, 7.00%, 9/01/27 ............................. United States 1,227,396 1,260,065
FHLMC Gold 30 Year, 8.00%, 1/01/31 ............................. United States 290,459 306,479
FHLMC Gold 30 Year, 8.50%, 7/01/31 ............................. United States 3,054,668 3,285,083
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50,215,939
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a FEDERAL NATIONAL MORTGAGE ASSOCIATION (FNMA) ADJUSTABLE RATE 0.8%
FNMA, 4.637%, 7/01/34 .......................................... United States 2,958,609 2,905,027
FNMA, 5.988%, 6/01/32 .......................................... United States 109,278 106,670
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3,011,697
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Quarterly Statement of Investments | 5
Franklin Templeton
Limited Duration Income Trust
STATEMENT OF INVESTMENTS, JUNE 30, 2006 (UNAUDITED) (CONTINUED)
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COUNTRY PRINCIPAL AMOUNT d VALUE
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MORTGAGE-BACKED SECURITIES (CONTINUED)
FEDERAL NATIONAL MORTGAGE ASSOCIATION (FNMA) FIXED RATE 12.7%
FNMA 15 Year, 5.00%, 10/01/17 .................................. United States 1,923,522 $ 1,857,382
FNMA 15 Year, 5.50%, 10/01/17 - 1/01/21 ........................ United States 6,624,595 6,511,227
FNMA 15 Year, 5.50%, 1/01/21 ................................... United States 4,424,355 4,344,306
FNMA 15 Year, 7.00%, 9/01/18 ................................... United States 470,040 483,438
FNMA 30 Year, 5.00%, 10/01/35 .................................. United States 2,146,561 2,008,510
FNMA 30 Year, 5.50%, 8/01/33 - 1/01/36 ......................... United States 11,038,119 10,626,556
FNMA 30 Year, 5.50%, 9/01/33 ................................... United States 4,897,924 4,726,560
FNMA 30 Year, 6.00%, 4/01/33 - 1/01/36 ......................... United States 13,511,270 13,327,278
FNMA 30 Year, 6.50%, 8/01/32 ................................... United States 1,950,056 1,967,877
FNMA 30 Year, 8.00%, 10/01/29 .................................. United States 382,773 404,045
FNMA 30 Year, 8.50%, 8/01/26 ................................... United States 624,552 669,742
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46,926,921
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GOVERNMENT NATIONAL MORTGAGE ASSOCIATION (GNMA) FIXED RATE 4.6%
GNMA I SF 30 Year, 5.50%, 4/15/33 - 12/15/34 ................... United States 3,205,339 3,111,202
GNMA I SF 30 Year, 5.50%, 12/15/34 ............................. United States 4,620,889 4,484,292
GNMA I SF 30 Year, 6.50%, 6/15/31 - 12/15/33 ................... United States 2,977,771 3,019,172
GNMA II SF 30 Year, 5.00%, 10/20/33 ............................ United States 4,079,861 3,842,202
GNMA II SF 30 Year, 7.00%, 1/20/24 - 12/20/30 .................. United States 1,906,634 1,955,016
GNMA II SF 30 Year, 8.00%, 1/20/28 - 2/20/32 ................... United States 689,513 728,879
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17,140,763
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TOTAL MORTGAGE-BACKED SECURITIES (COST $124,117,547) ........... 119,910,927
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ASSET-BACKED SECURITIES AND COMMERCIAL MORTGAGE-BACKED
SECURITIES 9.2%
FINANCE 9.2%
a Argent Securities Inc., 2003-W5, M4, FRN, 9.073%, 10/25/33 ..... United States 4,000,000 4,116,845
a GSR Mortgage Trust, 2003-AHL, B1, FRN, 9.323%, 10/25/33 ........ United States 5,000,000 5,058,864
a Merrill Lynch Mortgage Investors Inc., 2003-OPT1, B2, FRN,
8.073%, 7/25/34 ............................................... United States 1,000,000 1,017,720
a Morgan Stanley ABS Capital,
2003-HE3, B1, FRN, 8.623%, 10/25/33 ......................... United States 3,500,000 3,538,160
2003-NC10, B1, FRN, 8.623%, 10/25/33 ........................ United States 3,000,000 3,041,847
a Morgan Stanley Dean Witter Capital I, 2003-NC3, B1, FRN, 8.323%,
3/25/33 ....................................................... United States 1,116,454 1,123,351
a New Century Home Equity Loan Trust, 2003-2, M3, FRN, 9.023%,
1/25/33 ....................................................... United States 5,000,000 5,037,002
a Option One Mortgage Loan Trust, 2003-6, M5, FRN, 8.623%,
11/25/33 ...................................................... United States 3,500,000 3,547,216
a Residential Asset Securities Corp., 2003-KS10, MII3, FRN,
7.873%, 12/25/33 .............................................. United States 1,500,000 1,515,649
a Specialty Underwriting & Residential Finance, 2003-BC4, B2,
FRN, 7.823%, 11/25/34 ......................................... United States 1,500,000 1,522,038
6 | Quarterly Statement of Investments
Franklin Templeton
Limited Duration Income Trust
STATEMENT OF INVESTMENTS, JUNE 30, 2006 (UNAUDITED) (CONTINUED)
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COUNTRY PRINCIPAL AMOUNT d VALUE
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ASSET-BACKED SECURITIES AND COMMERCIAL MORTGAGE-BACKED SECURITIES (CONTINUED)
FINANCE (CONTINUED)
a Structured Asset Investment Loan Trust,
2003-BC2, M3, FRN, 8.573%, 4/25/33 .......................... United States 1,025,818 $ 1,028,102
2003-BC13, M4, FRN, 8.073%, 11/25/33 ........................ United States 3,340,000 3,386,239
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TOTAL ASSET-BACKED SECURITIES AND COMMERCIAL
MORTGAGE-BACKED SECURITIES (COST $33,217,244) ................. 33,933,033
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a SENIOR FLOATING RATE INTERESTS 52.4%
COMMERCIAL SERVICES 1.2%
Affiliated Computer Services Inc., Term Loan B, 6.794%, 3/20/13 United States 497,500 495,436
Dex Media West LLC, Term Loan B2, 6.67 - 7.00%, 3/09/10 ........ United States 2,751,231 2,738,906
Workflow Management Inc., Term Loan B, 9.126%, 11/30/11 ........ United States 1,392,857 1,399,292
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4,633,634
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COMMUNICATIONS 5.7%
Alaska Communications Systems Holdings Inc.,
Incremental Term Loan, 7.249%, 2/01/12 ...................... United States 100,000 100,307
Term Loan, 7.249%, 2/01/12 .................................. United States 4,000,000 4,012,280
Fairpoint Communications Inc., Term Loan B, 7.25%, 2/08/12 ..... United States 2,500,000 2,499,575
Hawaiian Telecom Communications Inc., Term Loan B, 7.75%,
10/31/12 ...................................................... United States 1,366,956 1,366,737
Intelsat Subsidiary Holding Co., Ltd., Senior Term Loan
Facility, 8.75%, 7/28/11 ...................................... Bermuda 2,394,612 2,394,420
Iowa Telecommunications Services Inc., Term Loan B, 7.15 -
7.25%, 11/23/11 ............................................... United States 3,000,000 3,019,650
Panamsat Corp., Term Loan B1, 7.184%, 8/01/11 .................. United States 3,940,000 3,941,221
Valor Telecommunications Enterprises LLC, Term Loan, 7.10 -
7.249%, 2/24/12 ............................................... United States 1,160,000 1,161,813
Windstream Corp., Term Loan B, 9.00%, 7/17/13 .................. United States 2,700,000 2,708,748
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21,204,751
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CONSUMER DURABLES 4.7%
Eastman Kodak Co.,
Term Loan B1, 7.33 - 7.699%, 10/18/12 ....................... United States 2,317,779 2,322,415
Term Loan B2 (Delayed Draw), 7.449 - 7.52%, 10/18/12 ........ United States 970,588 970,588
Jarden Corp., Term Loan B2, 7.249%, 1/24/12 .................... United States 3,641,288 3,636,773
Sealy Mattress Co., Term Loan D, 6.981 - 8.50%, 4/14/13 ........ United States 3,218,657 3,229,021
Solo Cup Co., Term Loan B, 7.61 - 7.999%, 2/27/11 .............. United States 1,959,900 1,967,132
Stile Acquisition Corp. (Masonite), Canadian Term Loan, 7.108 -
7.499%, 4/05/13 ............................................... Canada 1,827,799 1,812,610
Stile U.S. Acquisition Corp. (Masonite), U.S. Term Loan, 7.108 -
7.499%, 4/05/13 ............................................... United States 1,830,913 1,815,698
Tupperware Corp., Term Loan B, 6.81%, 12/05/12 ................. United States 1,919,463 1,909,501
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17,663,738
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CONSUMER NON-DURABLES 2.6%
Acco Brands Corp., Term Loan B, 6.827 - 7.164%, 8/17/12 ........ United States 970,700 975,573
Bumble Bee Foods LLC, Term Loan B, 6.824 - 7.039%, 5/02/12 ..... United States 500,000 500,730
Quarterly Statement of Investments | 7
Franklin Templeton
Limited Duration Income Trust
STATEMENT OF INVESTMENTS, JUNE 30, 2006 (UNAUDITED) (CONTINUED)
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COUNTRY PRINCIPAL AMOUNT d VALUE
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a SENIOR FLOATING RATE INTERESTS (CONTINUED)
CONSUMER NON-DURABLES (CONTINUED)
CBRL Group (Cracker Barrel), Term Loan B1, 6.63%, 4/27/13 ...... United States 965,724 $ 965,318
Central Garden & Pet Co., Term Loan B, 6.52 - 6.53%, 9/30/12 ... United States 272,656 273,090
Constellation Brands Inc., Term Loan B, 6.688 - 6.813%, 6/05/13 United States 1,600,000 1,606,384
c Del Monte Foods Co., Term Loan B, 8.75%, 2/08/12 ............... United States 631,879 633,080
Dole Food Co. Inc., Term Loan B, 7.00 - 8.75%, 4/12/13 ......... United States 212,241 210,572
Michael Foods Inc., Term Loan B1, 7.032 - 7.553%, 11/21/10 ..... United States 638,926 642,990
Reynolds American Inc., Term Loan B, 7.188 - 7.313%, 5/31/12 ... United States 1,800,000 1,803,222
Solvest Ltd. (Dole),
Letter of Credit, 4.92%, 4/12/13 ............................ Bermuda 95,362 94,613
Term Loan C, 7.00 - 9.00%, 4/12/13 .......................... United States 715,217 709,595
Southern Wine & Spirits of America Inc., Term Loan B, 6.999%,
5/31/12 ....................................................... United States 1,151,644 1,158,369
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9,573,536
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CONSUMER SERVICES 12.1%
Arby's Restaurant Holdings LLC, Term Loan B, 7.376 - 7.749%,
7/25/12 ....................................................... United States 1,605,484 1,612,628
Century Theaters Inc., Term Loan B, 7.106%, 3/01/13 ............ United States 500,000 501,745
Charter Communications Operating LLC, Term Loan B, 7.755%,
4/28/13 ....................................................... United States 1,962,560 1,965,209
Cinram International, Term Loan B, 6.879%, 5/05/11 ............. Canada 2,579,510 2,576,053
CSC Holdings Inc. (Cablevision), Incremental Term Loan, 6.74 -
6.988%, 3/29/13 ............................................... United States 798,000 793,667
DIRECTV Holdings LLC, Term Loan B, 6.794%, 4/13/13 ............. United States 1,130,479 1,134,571
Education Management LLC, Term Loan B, 7.625%, 6/01/13 ......... United States 1,700,000 1,706,987
Entravision Communications Corp., Term Loan B, 6.49%, 3/29/12 .. United States 1,094,500 1,094,358
Hertz Corp.,
Credit Link, 5.424%, 12/21/12 ............................... United States 155,556 155,979
Term Loan B, 7.26 - 7.41%, 12/21/12 ......................... United States 1,109,676 1,112,694
Insight Midwest Holdings LLC,
Term Loan A, 6.625%, 6/30/09 ................................ United States 935,649 935,004
Term Loan C, 7.375%, 12/31/09 ............................... United States 1,979,250 1,985,267
MediaNews Group Inc., Term Loan B, 6.60%, 12/30/10 ............. United States 2,272,050 2,250,352
Metro-Goldwyn-Mayer Inc., Term Loan B, 7.229%, 4/08/12 ......... United States 2,892,750 2,919,045
Mission Broadcasting Inc., Term Loan B, 7.249%, 10/01/12 ....... United States 1,689,906 1,689,652
MCC Iowa, Term Loan D-1, 6.90 - 7.37%, 1/31/15 ................. United States 1,980,000 1,977,703
Nexstar Broadcasting Inc., Term Loan B, 7.25%, 10/01/12 ........ United States 1,641,367 1,641,121
Penn National Gaming Inc., Term Loan B, 6.86 - 7.25%, 10/03/12 . United States 1,786,500 1,790,234
R.H. Donnelley Inc., Term Loan D-2, 6.49 - 7.00%, 6/30/11 ...... United States 1,448,858 1,445,859
Rainbow National Services LLC, Term Loan B, 10.00%, 3/31/12 .... United States 1,471,275 1,477,660
Regal Cinemas Corp., Term Loan B, 6.819 - 7.249%, 11/10/10 ..... United States 3,866,282 3,868,679
UPC Financing Partnership,
Term Loan J2, 7.108%, 3/31/13 ............................... Netherlands 2,000,000 2,004,560
Term Loan K2, 7.108%, 12/31/13 .............................. Netherlands 2,000,000 2,004,560
VML US Finance LLC (Venetian Macau), Term Loan B, 8.10%, 5/26/13 United States 2,333,333 2,343,017
WMG Acquisition Corp. (Warner Music), Term Loan B, 7.09 - 7.32%,
3/01/11 ....................................................... United States 3,878,354 3,895,109
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44,881,713
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8 | Quarterly Statement of Investments
Franklin Templeton
Limited Duration Income Trust
STATEMENT OF INVESTMENTS, JUNE 30, 2006 (UNAUDITED) (CONTINUED)
---------------------------------------------------------------------------------------------------------------------------------
COUNTRY PRINCIPAL AMOUNT d VALUE
---------------------------------------------------------------------------------------------------------------------------------
a SENIOR FLOATING RATE INTERESTS (CONTINUED)
ELECTRONIC TECHNOLOGY 0.2%
Onex Wind Finance LP (Mid-Western Aircraft), Term Loan B, 7.318%,
12/31/11 ...................................................... United States 842,744 $ 850,253
----------------
ENERGY MINERALS 0.6%
Citgo Petroleum Corp., Term Loan B, 6.599%, 11/15/12 ........... United States 1,691,500 1,689,149
Walter Industries Inc., Term Loan B, 6.87 - 7.249%, 10/03/12 ... United States 577,829 581,047
----------------
2,270,196
----------------
FINANCE 2.8%
Ameritrade Holding Corp., Term Loan B, 6.85%, 12/31/12 ......... United States 2,094,750 2,094,142
Avis Budget Car Rental, Term Loan, 6.35%, 4/19/12 .............. United States 1,000,000 991,080
Conseco Inc., Term Loan, 6.958%, 6/22/10 ....................... United States 361,623 363,887
Fidelity National Information Services Inc., Term Loan B, 6.92%,
3/09/13 ....................................................... United States 4,355,299 4,351,075
Nasdaq Stock Market Inc.,
Term Loan B, 6.971 - 7249%, 4/18/12 ......................... United States 1,580,308 1,575,219
Term Loan C (Delayed Draw), 6.831 - 7.249%, 4/18/12 ......... United States 913,442 910,501
----------------
10,285,904
----------------
HEALTH SERVICES 3.0%
c DaVita Inc., Term Loan B, 6.99 - 7.69%, 10/05/12 ............... United States 3,665,260 3,672,004
Fresenius Medical Care Holdings Inc., Term Loan B,
6.403 - 6.874%, 3/31/13 ....................................... United States 2,493,750 2,470,134
LifePoint Hospitals Inc., Term Loan B, 6.905%, 4/15/12 ......... United States 2,893,383 2,895,611
Matria Healthcare Inc.,
Term Loan B, 7.439 - 7.749%, 1/19/12 ........................ United States 743,699 745,298
Term Loan C, 7.439%, 1/19/07 ................................ United States 352,564 352,444
National Renal Institutes Inc., Term Loan B, 7.416 - 7.531%
3/31/13 ....................................................... United States 400,000 401,392
Quintiles Transnational Corp., Term Loan B, 7.50%, 3/31/13 ..... United States 498,750 499,453
----------------
11,036,336
----------------
INDUSTRIAL SERVICES 0.9%
Allied Waste North America Inc.,
Credit Link, 5.112%, 1/15/12 ................................ United States 772,360 769,687
Term Loan B, 6.48 - 6.86%, 1/15/12 .......................... United States 1,989,358 1,982,475
Petroleum Geo-Services ASA and PGS Finance Inc., Term Loan,
8.00 - 9.75%, 12/17/12 ........................................ Norway 513,647 514,911
----------------
3,267,073
----------------
NON-ENERGY MINERALS 1.3%
Novelis Corp., U.S. Term Loan, 7.38%, 1/09/12 .................. United States 1,168,576 1,171,205
Novelis Inc., Canadian Term Loan, 7.38%, 1/09/12 ............... Canada 672,816 674,331
St. Marys Cement Inc., Term Loan B, 7.499%, 12/04/09 ........... Canada 2,937,267 2,968,314
----------------
4,813,850
----------------
PROCESS INDUSTRIES 6.1%
Berry Plastics Corp., Term Loan, 7.10%, 12/02/11 ............... United States 2,802,880 2,816,839
Boise Cascade LLC, Term Loan D, 7.125 - 7.25%, 10/28/11 ........ United States 538,160 540,404
Quarterly Statement of Investments | 9
Franklin Templeton
Limited Duration Income Trust
STATEMENT OF INVESTMENTS, JUNE 30, 2006 (UNAUDITED) (CONTINUED)
---------------------------------------------------------------------------------------------------------------------------------
COUNTRY PRINCIPAL AMOUNT d VALUE
---------------------------------------------------------------------------------------------------------------------------------
a SENIOR FLOATING RATE INTERESTS (CONTINUED)
PROCESS INDUSTRIES (CONTINUED)
Georgia-Pacific Corp.,
Second Lien Term Loan, 8.30%, 12/23/13 ...................... United States 1,000,000 $ 1,004,870
Term Loan B, 7.30 - 7.499%, 12/20/12 ........................ United States 2,487,500 2,486,182
Graham Packaging Co.,
First Lien Term Loan, 6.938 - 7.75%, 10/07/11 ............... United States 1,678,296 1,686,201
Incremental Term Loan B, 7.375%, 10/07/11 ................... United States 370,488 372,404
Hexion Specialty Chemicals Inc.,
Term Loan C-1, 7.125%, 5/05/13 .............................. United States 2,880,257 2,871,356
Term Loan C-2, 7.50%, 5/05/13 ............................... Netherlands 625,674 623,740
Huntsman International LLC, Term Loan B, 7.044%, 8/16/12 ....... United States 3,813,720 3,799,190
Ineos U.S. Finance LLC,
Term Loan B2, 7.339%, 12/16/13 .............................. United States 400,000 404,192
Term Loan C2, 7.839%, 12/23/14 .............................. United States 400,000 404,244
Nalco Co., Term Loan B, 6.48 - 7.23%, 11/04/10 ................. United States 3,298,625 3,302,814
NewPage Corp., Term Loan, 8.499%, 5/02/11 ...................... United States 2,328,211 2,346,022
----------------
22,658,458
----------------
PRODUCER MANUFACTURING 3.5%
Cooper Standard Automotive Inc., Term Loan D, 8.00%, 12/23/11 .. Canada 895,500 899,225
Day International Group Inc., Term Loan B, 8.12%, 12/05/12 ..... United States 708,665 714,044
Euramax International Inc., Domestic Term Loan, 8.063%, 6/29/12 United States 1,040,916 1,046,516
Headwaters Inc., Term Loan B, 7.08%, 4/30/11 ................... United States 823,404 824,861
Nortek Inc., Term Loan, 7.35%, 8/27/11 ......................... United States 1,969,925 1,969,984
Sensus Metering Systems Inc.,
Term Loan B1, 6.72 - 7.08%, 12/17/10 ........................ United States 2,341,615 2,342,739
Term Loan B2, 6.72 - 6.94%, 12/17/10 ........................ United States 311,036 311,419
TriMas Corp., Term Loan B, 8.875%, 12/31/09 .................... United States 2,026,874 2,045,244
TRW Automotive Inc., Term Loan B, 6.25%, 6/30/12 ............... United States 2,955,000 2,949,267
----------------
13,103,299
----------------
REAL ESTATE DEVELOPMENT 1.3%
Kyle Acquisition Group,
Term Loan B, 7.375%, 7/08/10 ................................ United States 311,573 313,034
Term Loan C, 7.375%, 7/20/10 ................................ United States 288,427 289,653
LandSource Communities Development LLC, Term Loan B, 7.688%,
3/31/10 ....................................................... United States 1,000,000 1,004,090
London Arena and Waterfront Finance LLC, Term Loan A, 8.783%,
3/08/12 ....................................................... United States 598,500 602,989
Mattamy Group, Term Loan B, 7.477%, 4/11/13 .................... United States 500,000 502,395
November 2005 Land Investors LLC (North Las Vegas), Term Loan B,
8.249%, 5/31/11 ............................................... United States 498,750 499,807
Yellowstone Club, Term Loan, 7.725%, 9/30/10 ................... United States 1,854,320 1,852,614
----------------
5,064,582
----------------
10 | Quarterly Statement of Investments
Franklin Templeton
Limited Duration Income Trust
STATEMENT OF INVESTMENTS, JUNE 30, 2006 (UNAUDITED) (CONTINUED)
---------------------------------------------------------------------------------------------------------------------------------
COUNTRY PRINCIPAL AMOUNT d VALUE
---------------------------------------------------------------------------------------------------------------------------------
a SENIOR FLOATING RATE INTERESTS (CONTINUED)
REAL ESTATE INVESTMENT TRUSTS 2.5%
Capital Automotive REIT, Term Loan B, 6.86%, 12/10/10 .......... United States 2,909,856 $ 2,915,589
General Growth Properties Inc., Term Loan A-1, 6.56%, 2/24/10 .. United States 3,500,000 3,466,680
Lion Gables Realty LP, Term Loan B, 6.86 - 6.90%, 9/30/06 ...... United States 251,787 251,988
Maguire Properties Inc., Term Loan B, 6.92%, 3/15/10 ........... United States 1,102,222 1,103,280
Newkirk Master LP, Term Loan B, 6.834%, 8/11/08 ................ United States 673,389 675,308
Trizec Properties Inc., Term Loan B, 6.65%, 5/02/07 ............ United States 820,000 819,377
----------------
9,232,222
----------------
RETAIL TRADE 1.4%
Neiman Marcus Group Inc., Term Loan, 7.77%, 4/06/13 ............ United States 1,139,241 1,145,791
Pantry Inc., Term Loan, 7.10%, 1/02/12 ......................... United States 634,809 638,364
Travelcenters of America Inc., Term Loan, 6.86 - 7.25%, 12/01/11 United States 2,487,500 2,501,082
The William Carter Co., Term Loan B, 6.626 - 6.758%, 7/14/12 ... United States 787,787 788,323
----------------
5,073,560
----------------
TECHNOLOGY SERVICES 0.8%
SunGard Data Systems Inc., Term Loan, 7.66%, 2/11/13 ........... United States 2,855,160 2,870,007
----------------
TRANSPORTATION 0.2%
United Air Lines Inc.,
Delay Draw, 9.125%, 2/01/12 ................................. United States 87,500 89,088
Term Loan B, 8.625%, 2/01/12 ................................ United States 612,500 623,617
----------------
712,705
----------------
UTILITIES 1.5%
Astoria Generating Co. Acquisitions LLC,
L/C Term Loan, 7.45%, 2/23/11 ............................... United States 106,599 106,791
Term Loan B, 7.45%, 2/23/13 ................................. United States 452,007 452,884
LSP General Finance Co. LLC, Term Loan, 7.249%, 5/04/13 ........ United States 671,717 669,836
NRG Energy Inc.,
Credit Link, 7.499%, 2/01/13 ................................ United States 798,351 799,692
Term Loan B, 7.231%, 2/01/13 ................................ United States 3,492,895 3,498,798
----------------
5,528,001
----------------
TOTAL SENIOR FLOATING RATE INTERESTS
(COST $194,848,880) ........................................... 194,723,818
----------------
FOREIGN GOVERNMENT AND AGENCY SECURITIES 3.4%
a,g Government of Argentina, FRN, 4.889%, 8/03/12 .................. Argentina 3,950,000 3,208,414
Government of Canada, 7.25%, 6/1/07 ............................ Canada 1,500,000 CAD 1,376,724
Government of Malaysia, 8.60%, 12/01/07 ........................ Malaysia 4,700,000 MYR 1,358,027
Government of Norway, 6.75%, 1/15/07 ........................... Norway 8,300,000 NOK 1,357,470
Government of Poland, 8.50%, 11/12/06 .......................... Poland 8,750,000 PLN 2,794,531
Government of Singapore, 5.625%, 7/01/08 ....................... Singapore 2,150,000 SGD 1,426,450
Government of Sweden, 8.00%, 8/15/07 ........................... Sweden 8,300,000 SEK 1,216,671
----------------
TOTAL FOREIGN GOVERNMENT AND AGENCY SECURITIES
(COST $12,278,253) ............................................ 12,738,287
----------------
TOTAL LONG TERM INVESTMENTS (COST $551,647,000) ................ 547,801,118
----------------
Quarterly Statement of Investments | 11
Franklin Templeton
Limited Duration Income Trust
STATEMENT OF INVESTMENTS, JUNE 30, 2006 (UNAUDITED) (CONTINUED)
---------------------------------------------------------------------------------------------------------------------------------
COUNTRY PRINCIPAL AMOUNT d VALUE
---------------------------------------------------------------------------------------------------------------------------------
SHORT TERM INVESTMENTS 3.3%
GOVERNMENT BONDS 1.9%
Korea Treasury Note, 6.90%, 1/16/07 ............................ South Korea 3,600,000,000 KRW $ 3,838,171
h Thailand Treasury Bill,
7/27/06 ..................................................... Thailand 64,000,000 THB 1,673,875
9/07/06 ..................................................... Thailand 65,000,000 THB 1,690,435
----------------
7,202,481
----------------
--------------------
SHARES
--------------------
MONEY MARKET FUND 1.4%
i Franklin Institutional Fiduciary Trust Money Market Portfolio,
4.83% ......................................................... United States 5,208,669 5,208,669
----------------
TOTAL SHORT TERM INVESTMENTS (COST $11,477,408) ................ 12,411,150
----------------
TOTAL INVESTMENTS (COST $563,124,408) 150.8% ................... 560,212,268
PREFERRED SHARES (51.2)% ....................................... (190,000,000)
OTHER ASSETS, LESS LIABILITIES 0.4% ............................ 1,184,313
----------------
NET ASSETS APPLICABLE TO COMMON SHARES 100.0% .................. $ 371,396,581
================
CURRENCY ABBREVIATIONS
CAD - Canadian Dollar
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 coupon rate shown represents the rate at period end.
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 June 30, 2006, the
aggregate value of these securities was $33,856,750, representing 9.12% of
net assets.
c Security purchased on a when-issued or delayed delivery basis.
d The principal amount is stated in U.S. dollars unless otherwise indicated.
e Defaulted security.
f See Note 3 regarding other considerations.
g The principal amount is stated in original face, and scheduled paydowns
are reflected in the market price on ex-date.
h The security is traded on a discount basis with no stated coupon rate.
i 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.
12 | See Notes to Statement of Investments. | Quarterly Statement of Investments
Franklin Templeton
Limited Duration Income Trust
NOTES TO STATEMENTS OF INVESTMENTS (UNAUDITED)
Franklin Templeton Limited Duration Income Trust (the Fund) is registered under
the Investment Company Act of 1940 as a diversified, closed-end investment
company.
1. INCOME TAXES
At June 30, 2006, the cost of investments and net unrealized appreciation
(depreciation) for income tax purposes were as follows:
Cost of investments .......................................... $ 565,129,590
=============
Unrealized appreciation ...................................... $ 5,248,116
Unrealized depreciation ...................................... (10,165,438)
-------------
Net unrealized appreciation (depreciation) ................... $ (4,917,322)
=============
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 June 30, 2006, unfunded commitments were as follows:
-------------------------------------------------------------------------------
UNFUNDED
BORROWER COMMITMENT
-------------------------------------------------------------------------------
CBRL Group (Cracker Barrel), Delay Draw ...................... $ 134,276
Hertz Corp., Delay Draw ...................................... 129,465
LSP General Finance Co. LLC, Delay Draw ...................... 28,283
VML US Finance LLC (Venetian Macau), Delay Draw .............. 1,166,667
-------------
$ 1,458,691
=============
3. OTHER CONSIDERATIONS
Directors or employees of Franklin Advisers, Inc., as the Fund's Investment
Manager, may serve as members of various bondholders' steering committees, on
credit committees, or may represent the Funds in certain corporate restructuring
negotiations. At June 30, 2006, such individuals serve in one or more of these
capacities for Calpine Corp. As a result of this involvement, such individuals
may be in possession of certain material non-public information. If the Fund's
Investment Manager, while in possession of such information, seeks to buy or
sell any of these securities, it will comply with all applicable federal
securities laws.
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.
Quarterly Statement of Investments | 13
Item 2. Controls and Procedures.
(a) EVALUATION OF DISCLOSURE CONTROLS AND PROCEDURES. The Registrant maintains
disclosure controls and procedures that are designed to ensure that information
required to be disclosed in the Registrant's filings under the Securities
Exchange Act of 1934 and the Investment Company Act of 1940 is recorded,
processed, summarized and reported within the periods specified in the rules and
forms of the Securities and Exchange Commission. Such information is accumulated
and communicated to the Registrant's management, including its principal
executive officer and principal financial officer, as appropriate, to allow
timely decisions regarding required disclosure. The Registrant's management,
including the principal executive officer and the principal financial officer,
recognizes that any set of controls and procedures, no matter how well designed
and operated, can provide only reasonable assurance of achieving the desired
control objectives.
Within 90 days prior to the filing date of this Quarterly Schedule of Portfolio
Holdings on Form N-Q, the Registrant had carried out an evaluation, under the
supervision and with the participation of the Registrant's management, including
the Registrant's principal executive officer and the Registrant's principal
financial officer, of the effectiveness of the design and operation of the
Registrant's disclosure controls and procedures. Based on such evaluation, the
Registrant's principal executive officer and principal financial officer
concluded that the Registrant's disclosure controls and procedures are
effective.
(b) CHANGES IN INTERNAL CONTROLS. There have been no significant changes in the
Registrant's internal controls or in other factors that could significantly
affect the internal controls subsequent to the date of their evaluation in
connection with the preparation of this Quarterly Schedule of Portfolio Holdings
on Form N-Q.
Item 3. Exhibits.
(A) Certification pursuant to Section 30a-2 under the Investment Company Act of
1940 of Jimmy D. Gambill, Chief Executive Officer - Finance and Administration,
and Galen G. Vetter, Chief Financial Officer.
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934 and the
Investment Company Act of 1940, the registrant has duly caused this report to be
signed on its behalf by the undersigned, thereunto duly authorized.
FRANKLIN TEMPLETON LIMITED DURATION INCOME TRUST
By /S/JIMMY D. GAMBILL
-------------------
Jimmy D. Gambill
Chief Executive Officer - Finance and Administration
Date August 28, 2006
Pursuant to the requirements of the Securities Exchange Act of 1934 and the
Investment Company Act of 1940, this report has been signed below by the
following persons on behalf of the registrant and in the capacities and on the
dates indicated.
By/S/JIMMY D. GAMBILL
-------------------
Jimmy D. Gambill
Chief Executive Officer - Finance and Administration
Date August 28, 2006
By /S/GALEN G. VETTER
------------------
Galen G. Vetter
Chief Financial Officer
Date August 28, 2006
Exhibit A
I, Jimmy D. Gambill, certify that:
1. I have reviewed this report on Form N-Q of FRANKLIN TEMPLETON LIMITED
DURATION INCOME TRUST;
2. Based on my knowledge, this report does not contain any untrue
statement of a material fact or omit to state a material fact necessary to make
the statements made, in light of the circumstances under which such statements
were made, not misleading with respect to the period covered by this report;
3. Based on my knowledge, the schedules of investments included in this
report fairly present in all material respects the investments of the registrant
as of the end of the fiscal quarter for which the report is filed;
4. The registrant's other certifying officer(s) and I are responsible for
establishing and maintaining disclosure controls and procedures (as defined in
Rule 30a-3(c) under the Investment Company Act of 1940) and internal control
over financial reporting (as defined in Rule 30a-3(d) under the Investment
Company Act of 1940) for the registrant and have:
(a) Designed such disclosure controls and procedures, or caused such
disclosure controls and procedures to be designed under our supervision, to
ensure that material information relating to the registrant, including its
consolidated subsidiaries, is made known to us by others within those entities,
particularly during the period in which this report is being prepared;
(b) Designed such internal control over financial reporting, or caused
such internal control over financial reporting to be designed under our
supervision, to provide reasonable assurance regarding the reliability of
financial reporting and the preparation of financial statements for external
purposes in accordance with generally accepted accounting principles;
(c) Evaluated the effectiveness of the registrant's disclosure controls
and procedures and presented in this report our conclusions about the
effectiveness of the disclosure controls and procedures, as of a date within 90
days prior to the filing date of this report, based on such evaluation; and
(d) Disclosed in this report any change in the registrant's internal
control over financial reporting that occurred during the registrant's most
recent fiscal quarter that has materially affected, or is reasonably likely to
materially affect, the registrant's internal control over financial reporting;
and
5. The registrant's other certifying officer(s) and I have disclosed to
the registrant's auditors and the audit committee of the registrant's board of
directors (or persons performing the equivalent functions):
(a) All significant deficiencies and material weaknesses in the design or
operation of internal control over financial reporting which are reasonably
likely to adversely affect the registrant's ability to record, process,
summarize, and report financial information; and
(b) Any fraud, whether or not material, that involves management or other
employees who have a significant role in the registrant's internal control over
financial reporting.
August 28, 2006
/S/JIMMY D. GAMBILL
Jimmy D. Gambill
Chief Executive Officer - Finance and Administration
I, Galen G. Vetter, certify that:
1. I have reviewed this report on Form N-Q of FRANKLIN TEMPLETON LIMITED
DURATION INCOME TRUST;
2. Based on my knowledge, this report does not contain any untrue
statement of a material fact or omit to state a material fact necessary to make
the statements made, in light of the circumstances under which such statements
were made, not misleading with respect to the period covered by this report;
3. Based on my knowledge, the schedules of investments included in this
report fairly present in all material respects the investments of the registrant
as of the end of the fiscal quarter for which the report is filed;
4. The registrant's other certifying officer(s) and I are responsible for
establishing and maintaining disclosure controls and procedures (as defined in
Rule 30a-3(c) under the Investment Company Act of 1940) and internal control
over financial reporting (as defined in Rule 30a-3(d) under the Investment
Company Act of 1940) for the registrant and have:
(a) Designed such disclosure controls and procedures, or caused such
disclosure controls and procedures to be designed under our supervision, to
ensure that material information relating to the registrant, including its
consolidated subsidiaries, is made known to us by others within those entities,
particularly during the period in which this report is being prepared;
(b) Designed such internal control over financial reporting, or caused
such internal control over financial reporting to be designed under our
supervision, to provide reasonable assurance regarding the reliability of
financial reporting and the preparation of financial statements for external
purposes in accordance with generally accepted accounting principles;
(c) Evaluated the effectiveness of the registrant's disclosure controls
and procedures and presented in this report our conclusions about the
effectiveness of the disclosure controls and procedures, as of a date within 90
days prior to the filing date of this report, based on such evaluation; and
(d) Disclosed in this report any change in the registrant's internal
control over financial reporting that occurred during the registrant's most
recent fiscal quarter that has materially affected, or is reasonably likely to
materially affect, the registrant's internal control over financial reporting;
and
5. The registrant's other certifying officer(s) and I have disclosed to
the registrant's auditors and the audit committee of the registrant's board of
directors (or persons performing the equivalent functions):
(a) All significant deficiencies and material weaknesses in the design or
operation of internal control over financial reporting which are reasonably
likely to adversely affect the registrant's ability to record, process,
summarize, and report financial information; and
(b) Any fraud, whether or not material, that involves management or other
employees who have a significant role in the registrant's internal control over
financial reporting.
August 28, 2006
/S/GALEN G. VETTER
Galen G. Vetter
Chief Financial Officer