Company: TXEMF
Filing Date: 2025-03-03
Form Type: N-CSR
Source: 0001133228-25-001853
Chunk: 94

Company: TEMPLETON EMERGING MARKETS INCOME FUND
Filing Date: 2025-03-03
Form: N-CSR
Chunk 94
---
the

underlying

instrument.

Should

a

market

or

markets,

or

prices

of

particular

classes

of

investments

move

in

an

unexpected

manner,

especially

in

unusual

or

extreme

market

conditions,

the

Fund

may

not

achieve

the

anticipated

benefits

of

the

transaction,

and

it

may

realize

losses,

which

could

be

significant.

If

the

investment

manager

is

not

successful

in

using

such

derivative

instruments,

the

Fund’s

performance

may

be

worse

than

if

the

investment

manager

did

not

use

such

derivative

instruments

at

all.

When

a

derivative

is

used

for

hedging,

the

change

in

value

of

the

derivative

may

also

not

correlate

specifically

with

the

currency,

security,

interest

rate,

index

or

other

risk

being

hedged.

Derivatives

also

may

present

the

risk

that

the

other

party

to

the

transaction

will

fail

to

perform.

There

is

also

the

risk,

especially

under

extreme

market

conditions,

that

an

instrument,

which

usually

would

operate

as

a

hedge,

provides

no

hedging

benefits

at

all.

Templeton

Emerging

Markets

Income

Fund

Important

Information

to

Shareholders

42

franklintempleton.com

Annual

Report

Counterparty

risk

.

Use

of

derivative

instruments

could

also

result

in

a

loss

if

the

counterparty

to

the

transaction

does

not

perform

as

promised,

including

because

of

such

counterparty’s

bankruptcy

or

insolvency.

Other

risks

include

the

inability

to

close

out

a

position

because

the

trading

market

becomes

illiquid

(particularly

in

the

OTC

markets)

or

the

availability

of

counterparties

becomes

limited

for

a