FORM N-Q
QUARTERLY SCHEDULE OF PORTFOLIO HOLDINGS OF
REGISTERED MANAGEMENT INVESTMENT COMPANIES
Investment Company Act file number 811-04985
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TEMPLETON EMERGING MARKETS FUND
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(Exact name of registrant as specified in charter)
500 EAST BROWARD BLVD., SUITE 2100, FORT LAUDERDALE, FL 33394-3091
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(Address of principal executive offices) (Zip code)
MURRAY L. SIMPSON, 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: (954) 527-7500
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Date of fiscal year end: 08/31
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Date of reporting period: 05/31/05
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ITEM 1. SCHEDULE OF INVESTMENTS.
TEMPLETON EMERGING MARKETS FUND
QUARTERLY STATEMENT OF INVESTMENTS
MAY 31, 2005
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CONTENTS
Statement of Investments ................................................... 3
Notes to Statement of Investments .......................................... 8
[LOGO](R)
FRANKLIN TEMPLETON
INVESTMENTS
Franklin o TEMPLETON o Mutual Series
Quarterly Statements of Investments | 1
This page intentionally left blank.
TEMPLETON EMERGING MARKETS FUND
STATEMENT OF INVESTMENTS, MAY 31, 2005 (UNAUDITED)
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INDUSTRY SHARES/RIGHTS VALUE
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COMMON STOCKS 86.3%
AUSTRIA 1.9%
Bank Austria Creditanstalt ...................... Commercial Banks 56,161 $ 5,508,894
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BELGIUM 0.5%
Inbev ........................................... Beverages 44,650 1,474,943
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BRAZIL 2.7%
Centrais Eletricas Brasileiras SA ............... Electric Utilities 67,922,000 1,008,966
Centrais Eletricas Brasileiras SA
(Non- Taxable) ............................... Electric Utilities 106,472,000 1,581,617
Embraer-Empresa Bras de Aeronautica SA .......... Aerospace & Defense 287,066 1,715,249
(a) Localiza Rent a Car SA, 144A .................... Diversified Consumer Services 119,000 545,623
Souza Cruz SA ................................... Tobacco 198,073 2,450,023
Unibanco Uniao de Bancos Brasileiros SA,
GDR .......................................... Commercial Banks 16,600 595,940
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7,897,418
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CHINA 8.7%
(a) Air China Ltd., H, 144A ......................... Airlines 461,000 162,949
Aluminum Corp. of China Ltd., H ................. Metals & Mining 2,864,000 1,472,484
Anhui Conch Cement Co. Ltd., H .................. Construction Materials 1,222,000 1,075,919
Beijing Enterprises Holdings Ltd. ............... Industrial Conglomerates 180,162 230,411
China Mobile (Hong Kong) Ltd .................... Wireless Telecommunication Services 2,295,500 8,394,159
China Resources Enterprise Ltd. ................. Distributors 1,974,000 2,714,867
China Travel International Investment Hong
Kong Ltd ..................................... Hotels, Restaurants & Leisure 2,436,000 673,183
(a) Chongqing Changan Automobile Co. Ltd. ........... Automobiles 539,800 284,469
CITIC Pacific Ltd. .............................. Industrial Conglomerates 757,192 2,111,949
Denway Motors Ltd ............................... Automobiles 3,394,730 1,199,929
Huadian Power International Corp. Ltd., H ....... Independent Power Producers & Energy Traders 2,902,000 811,287
Lenovo Group Ltd. ............................... Computers & Peripherals 954,000 303,488
PetroChina Co. Ltd., H .......................... Oil, Gas & Consumable Fuels 5,118,000 3,272,736
Shanghai Industrial Holdings Ltd ................ Industrial Conglomerates 856,000 1,661,377
TCL Multimedia Technology Holdings Ltd. ......... Household Durables 1,046,000 188,225
Travelsky Technology Ltd., H .................... IT Services 1,320,000 1,060,404
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25,617,836
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CROATIA 0.7%
(a) Pliva D. D., GDR, Reg S ......................... Pharmaceuticals 176,200 2,075,636
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GREECE 0.4%
Coca-Cola Hellenic Bottling Co. SA .............. Beverages 18,770 497,139
Titan Cement Co ................................. Construction Materials 20,620 616,181
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1,113,320
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HONG KONG 2.8%
Cathay Pacific Airways Ltd. ..................... Airlines 149,000 270,037
Cheung Kong Holdings Ltd. ....................... Real Estate 458,000 4,179,665
Cheung Kong Infrastructure Holdings Ltd. ........ Electric Utilities 284,000 857,835
Dairy Farm International Holdings Ltd. .......... Food & Staples Retailing 231,100 665,568
Guoco Group Ltd. ................................ Diversified Financial Services 32,506 326,938
Henderson Investment Ltd. ....................... Real Estate 259,497 363,560
Quarterly Statements of Investments | 3
TEMPLETON EMERGING MARKETS FUND
STATEMENT OF INVESTMENTS, MAY 31, 2005 (UNAUDITED) (CONTINUED)
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INDUSTRY SHARES/RIGHTS VALUE
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COMMON STOCKS (CONT.)
HONG KONG (CONT.)
Hopewell Holdings Ltd. .......................... Transportation Infrastructure 37,000 $ 91,548
MTR Corp. Ltd. .................................. Road & Rail 728,996 1,344,605
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8,099,756
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HUNGARY 1.8%
Gedeon Richter Ltd. ............................. Pharmaceuticals 13,349 1,743,686
Magyar Telekom Ltd. ............................. Diversified Telecommunication Services 420,639 1,631,772
(a) MOL Magyar Olaj-Es Gazipari RT .................. Oil, Gas & Consumable Fuels 25,880 1,928,419
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5,303,877
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INDIA 3.5%
Gail India Ltd. ................................. Gas Utilities 331,410 1,621,068
Hindustan Lever Ltd. ............................ Household Products 827,600 2,707,907
Hindustan Petroleum Corp. Ltd. .................. Oil, Gas & Consumable Fuels 379,123 2,904,299
Oil & Natural Gas Corp. Ltd ..................... Oil, Gas & Consumable Fuels 41,933 883,085
Tata Motors Ltd. ................................ Machinery 42,800 423,549
Tata Tea Ltd. ................................... Food Products 120,315 1,577,020
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10,116,928
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INDONESIA 0.1%
PT Bank Danamon ................................. Commercial Banks 617,500 313,032
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MALAYSIA 1.6%
Kuala Lumpur Kepong Bhd ......................... Food Products 150,600 253,642
Maxis Communications Bhd ........................ Wireless Telecommunication Services 137,700 356,933
Resorts World Bhd ............................... Hotels, Restaurants & Leisure 790,600 2,007,708
SIME Darby Bhd .................................. Industrial Conglomerates 568,100 867,100
Tanjong PLC ..................................... Hotels, Restaurants & Leisure 84,100 283,284
YTL Corp. Bhd ................................... Multi-Utilities 286,346 395,609
YTL Power International Bhd ..................... Water Utilities 1,003,184 525,352
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4,689,628
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MEXICO 3.8%
Fomento Economico Mexicano SA de CV (Femsa),
ADR .......................................... Beverages 66,789 3,656,698
Grupo Bimbo SA de CV, A ......................... Food Products 97,130 264,190
Kimberly Clark de Mexico SA de CV, A ............ Household Products 1,765,200 5,620,416
Telefonos de Mexico SA de CV (Telmex), L,
ADR .......................................... Diversified Telecommunication Services 83,424 1,556,692
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11,097,996
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PANAMA 0.3%
Banco Latinoamericano de Exportaciones
SA, E ........................................ Commercial Banks 48,000 878,400
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PHILIPPINES 1.1%
San Miguel Corp., B ............................. Beverages 1,948,199 3,231,525
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4 | Quarterly Statements of Investments
TEMPLETON EMERGING MARKETS FUND
STATEMENT OF INVESTMENTS, MAY 31, 2005 (UNAUDITED) (CONTINUED)
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INDUSTRY SHARES/RIGHTS VALUE
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COMMON STOCKS (CONT.)
POLAND 2.3%
(a) KGHM Polska Miedz SA ............................ Metals & Mining 28,900 $ 250,756
Polski Koncern Naftowy Orlen SA ................. Oil, Gas & Consumable Fuels 187,642 2,558,452
Telekomunikacja Polska SA ....................... Diversified Telecommunication Services 696,500 3,874,698
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6,683,906
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RUSSIA 2.7%
Lukoil Holdings, ADR ............................ Oil, Gas & Consumable Fuels 91,276 3,190,096
Mining and Metallurgical Co. Norilsk Nickel ..... Metals & Mining 47,300 2,764,685
Mobile Telesystems, ADR ......................... Wireless Telecommunication Services 59,800 2,098,980
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8,053,761
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SINGAPORE 5.9%
Comfortdelgro Corp. Ltd. ........................ Road & Rail 1,530,000 1,560,475
Fraser & Neave Ltd .............................. Industrial Conglomerates 473,367 4,458,761
Keppel Corp. Ltd. ............................... Industrial Conglomerates 882,000 6,138,229
Singapore Press Holdings Ltd. ................... Media 456,250 1,182,505
Singapore Technologies Engineering Ltd. ......... Aerospace & Defense 676,000 973,362
Singapore Telecommunications Ltd. ............... Diversified Telecommunication Services 2,000,142 3,119,972
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17,433,304
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SOUTH AFRICA 7.8%
Anglo American PLC .............................. Metals & Mining 337,543 7,986,486
Nadebank Group Ltd. ............................. Commercial Banks 166,510 1,852,555
Nedabank Group Ltd., 144A ....................... Commercial Banks 26,167 291,128
Old Mutual PLC .................................. Insurance 1,585,110 3,398,372
Remgro Ltd. ..................................... Diversified Financial Services 391,649 5,981,371
SABMiller PLC ................................... Beverages 93,448 1,417,974
Sappi Ltd. ...................................... Paper & Forest Products 128,780 1,239,978
Sasol Ltd. ...................................... Oil, Gas & Consumable Fuels 26,600 656,313
Spar Group Ltd. ................................. Food & Staples Retailing 24,000 83,135
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22,907,312
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SOUTH KOREA 17.3%
CJ Corp. ........................................ Food Products 42,110 3,009,350
Daelim Industrial Co. ........................... Construction & Engineering 600 28,883
Daewoo Shipbuilding & Marine
Engineering Co. Ltd. ......................... Machinery 285,860 5,788,133
Hana Bank ....................................... Commercial Banks 124,840 3,184,504
Hite Brewery Co. Ltd. ........................... Beverages 28,810 2,656,525
Hyundai Development Co. ......................... Construction & Engineering 144,210 3,048,807
Kangwon Land Inc. ............................... Hotels, Restaurants & Leisure 241,368 3,473,783
Korea Gas Corp. ................................. Gas Utilities 39,480 1,105,048
(a) LG Card Co. Ltd. ................................ Consumer Finance 6,080 204,578
LG Chem Ltd. .................................... Chemicals 67,500 2,462,159
(a) LG Corp ......................................... Industrial Conglomerates 124,000 3,175,385
LG Electronics Inc. ............................. Household Durables 19,180 1,389,717
LG Household & Health Care Ltd. ................. Household Products 41,230 1,518,246
LG International Corp. .......................... Trading Companies & Distributors 58,060 671,364
LG Petrochemical Co. Ltd. ....................... Chemicals 39,420 962,513
Quarterly Statements of Investments | 5
TEMPLETON EMERGING MARKETS FUND
STATEMENT OF INVESTMENTS, MAY 31, 2005 (UNAUDITED) (CONTINUED)
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INDUSTRY SHARES/RIGHTS VALUE
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COMMON STOCKS (CONT.)
SOUTH KOREA (CONT.)
POSCO ........................................... Metals & Mining 490 $ 87,543
Samsung Electronics Co. Ltd. .................... Semiconductors & Semiconductor Equipment 20,130 9,780,283
Samsung Fine Chemicals Co. Ltd .................. Chemicals 103,070 2,005,134
Samsung Heavy Industries Co. Ltd. ............... Machinery 367,820 3,095,894
SK Corp. ........................................ Oil, Gas & Consumable Fuels 13,830 719,297
SK Telecom Co. Ltd. ............................. Wireless Telecommunication Services 11,850 2,170,050
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50,537,196
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SWEDEN 0.6%
Oriflame Cosmetics, IDR ......................... Personal Products 90,080 1,834,389
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TAIWAN 13.4%
Acer Inc. ....................................... Computers & Peripherals 687,134 1,303,506
Chunghwa Telecom Co. Ltd. ....................... Diversified Telecommunication Services 1,234,000 2,431,411
D-Link Corp. .................................... Communications Equipment 2,147,224 2,601,451
Delta Electronics Inc. .......................... Electronic Equipment & Instruments 1,278,229 2,074,346
Elan Microelectronics Corp. ..................... Semiconductors & Semiconductor Equipment 1,211,927 591,184
Kinpo Electronics Inc. .......................... Office Electronics 934,680 405,281
Lite-On Technology Corp. ........................ Computers & Peripherals 2,278,900 2,444,922
MediaTek Inc. ................................... Semiconductors & Semiconductor Equipment 399,000 3,447,441
Mega Financial Holdings Co. Ltd. ................ Commercial Banks 5,508,661 3,582,869
Premier Image Technology Corp. .................. Leisure Equipment & Products 938,000 1,045,213
President Chain Store Corp. ..................... Food & Staples Retailing 1,042,188 1,910,595
Realtek Semiconductor Corp. ..................... Semiconductors & Semiconductor Equipment 64,000 65,092
Siliconware Precision Industries Co. Ltd. ....... Semiconductors & Semiconductor Equipment 1,460,000 1,391,806
Sunplus Technology Co. Ltd. ..................... Semiconductors & Semiconductor Equipment 1,673,530 2,326,348
Synnex Technology International Corp. ........... Electronic Equipment & Instruments 399,200 596,923
Taiwan Mobile Co. Ltd. .......................... Wireless Telecommunication Services 4,773,372 4,778,698
Taiwan Semiconductor Manufacturing Co. .......... Semiconductors & Semiconductor Equipment 2,061,000 3,738,910
UNI-President Enterprises Corp. ................. Food Products 5,906,350 2,674,005
Yuanta Core Pacific Securities Co. .............. Capital Markets 2,739,475 1,965,190
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39,375,191
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THAILAND 1.8%
BEC World Public Co. Ltd., fgn .................. Media 1,491,900 455,318
Kasikornbank Public Co. Ltd., fgn ............... Commercial Banks 1,176,200 1,722,468
Land and House Public Co. Ltd., fgn ............. Household Durables 1,520,900 288,233
Shin Corp. Public Co. Ltd., fgn ................. Wireless Telecommunication Services 387,100 355,374
Siam Cement Public Co. Ltd., fgn ................ Construction Materials 82,500 495,447
Siam Commercial Bank Public Co. Ltd., fgn ....... Commercial Banks 161,000 189,214
Siam Makro Public Co. Ltd., fgn ................. Food & Staples Retailing 120,000 184,593
Thai Airways International Public Co. Ltd.,
fgn .......................................... Airlines 125,900 145,329
(a) TMB Bank Public Co. Ltd., fgn ................... Commercial Banks 13,214,500 1,320,474
(a) True Corp. Public Co. Ltd., rts., 3/28/08 ....... Diversified Telecommunication Services 246,818 --
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5,156,450
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TURKEY 3.0%
Arcelik AS, Br .................................. Household Durables 469,047 2,475,001
Migros Turk TAS ................................. Food & Staples Retailing 333,485 2,590,649
6 | Quarterly Statements of Investments
TEMPLETON EMERGING MARKETS FUND
STATEMENT OF INVESTMENTS, MAY 31, 2005 (UNAUDITED) (CONTINUED)
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INDUSTRY SHARES/RIGHTS VALUE
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COMMON STOCKS (CONT.)
TURKEY (CONT.)
Tupras-Turkiye Petrol Rafineleri AS ............. Oil, Gas & Consumable Fuels 207,280 $ 2,643,219
Turkiye Is Bankasi AS, C ........................ Commercial Banks 207,376 1,124,648
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8,833,517
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UNITED KINGDOM 1.6%
HSBC Holdings PLC ............................... Commercial Banks 214,055 3,411,651
Provident Financial PLC ......................... Consumer Finance 102,402 1,250,280
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4,661,931
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TOTAL COMMON STOCKS (COST $187,270,342) ......... 252,896,146
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PREFERRED STOCKS 4.7%
BRAZIL 4.7%
Banco Bradesco SA, ADR, pfd ..................... Commercial Banks 151,724 4,850,616
Bradespar SA, pfd ............................... Diversified Financial Services 13,423 225,573
Cia de Bebidas das Americas (AmBev),
ADR, pfd ..................................... Beverages 74,100 2,237,079
Cia Vale do Rio Doce, ADR, pfd., A .............. Metals & Mining 63,400 1,564,712
Petroleo Brasileiro SA, ADR, pfd ................ Oil, Gas & Consumable Fuels 102,880 4,310,672
Suzano Bahia Sul Papel e Celulose SA,
pfd., A ...................................... Paper & Forest Products 124,778 525,518
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TOTAL PREFERRED STOCKS (COST $8,165,259) ........ 13,714,170
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SHORT TERM INVESTMENTS (COST $24,955,323) 8.5%
(b) Franklin Institutional Fiduciary Trust Money
Market Portfolio ............................. 24,955,323 24,955,323
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TOTAL INVESTMENTS
(COST $220,390,924) 99.5% .................... 291,565,639
OTHER ASSETS, LESS LIABILITIES 0.5% ............. 1,346,696
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NET ASSETS 100.0% ............................... $292,912,335
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SELECTED PORTFOLIO ABBREVIATIONS
ADR - American Depository Receipt
GDR - Global Depository Receipt
IDR - International Depository Receipt
PLC - Public Limited Co.
(a) Non-income producing.
(b) The Franklin Institutional Fiduciary Trust Money Market Portfolio is
managed by an affiliate of the Fund's investment manager.
Quarterly Statements of Investments |
See Notes to Statements of Investments. | 7
TEMPLETON EMERGING MARKETS FUND
NOTES TO STATEMENT OF INVESTMENTS (UNAUDITED)
Templeton Emerging Markets Fund (the Fund) is registered under the Investment
Company Act of 1940 as a diversified, closed-end investment company.
1. INCOME TAXES
At May 31, 2005 the net unrealized appreciation (depreciation) based on the cost
of investments for income tax purposes was as follows:
Cost of investments .......................................... $ 223,764,320
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Unrealized appreciation ...................................... $ 70,762,563
Unrealized depreciation ...................................... (2,961,244)
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Net unrealized appreciation (depreciation) ................... $ 67,801,319
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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.
8 | Quarterly Statements 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) Certifications pursuant to Section 30a-2 of 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.
TEMPLETON EMERGING MARKETS FUND
By /s/JIMMY D. GAMBILL
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Jimmy D. Gambill
Chief Executive Officer -
Finance and Administration
Date July 22, 2005
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
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Jimmy D. Gambill
Chief Executive Officer -
Finance and Administration
Date July 22, 2005
By /s/GALEN G. VETTER
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Galen G. Vetter
Chief Financial Officer
Date July 22, 2005