FORM N-Q
QUARTERLY SCHEDULE OF PORTFOLIO HOLDINGS OF
REGISTERED MANAGEMENT INVESTMENT COMPANY
Investment Company Act file number 811-04985
----------
TEMPLETON EMERGING MARKETS FUND
-----------------------------------
(Exact name of registrant as specified in charter)
500 EAST BROWARD BLVD., SUITE 2100, FORT LAUDERDALE, FL 33394-3091
--------------------------------------------------------------------
(Address of principal executive offices) (Zip code)
CRAIG S. TYLE, ONE FRANKLIN PARKWAY, SAN MATEO, CA 94403-1906
----------------------------------------------------------------
(Name and address of agent for service)
Registrant's telephone number, including area code: (954) 527-7500
--------------
Date of fiscal year end: 8/31
---------
Date of reporting period: 11/30/09
---------
ITEM 1. SCHEDULE OF INVESTMENTS.
Templeton Emerging Markets Fund
STATEMENT OF INVESTMENTS, NOVEMBER 30, 2009 (UNAUDITED)
INDUSTRY SHARES VALUE
---------------------------------------- ---------- --------------
COMMON STOCKS 80.4%
AUSTRIA 1.1%
OMV AG Oil, Gas & Consumable Fuels 89,020 $ 3,766,137
--------------
BRAZIL 4.3%
Itau Unibanco Holding SA, ADR Commercial Banks 666,033 14,819,234
--------------
CHINA 17.3%
(a) Aluminum Corp. of China Ltd., H Metals & Mining 9,792,000 10,840,901
(a) Brilliance China Automotive Holdings Ltd. Automobiles 32,040,000 10,128,970
China Petroleum and Chemical Corp., H Oil, Gas & Consumable Fuels 7,136,000 5,939,109
Chiwan Wharf Holdings Ltd., B Transportation Infrastructure 2,126,967 3,414,191
Denway Motors Ltd. Automobiles 22,188,730 13,628,439
PetroChina Co. Ltd., H Oil, Gas & Consumable Fuels 11,688,000 14,478,319
Win Hanverky Holdings Ltd. Textiles, Apparel & Luxury Goods 9,844,000 1,244,814
--------------
59,674,743
--------------
HONG KONG 5.2%
Dairy Farm International Holdings Ltd. Food & Staples Retailing 1,658,100 9,815,952
(a) Victory City International Holdings Ltd. Textiles, Apparel & Luxury Goods 28,152,000 4,286,452
VTech Holdings Ltd. Communications Equipment 392,500 3,813,654
--------------
17,916,058
--------------
HUNGARY 1.2%
(a) MOL Hungarian Oil and Gas Nyrt. Oil, Gas & Consumable Fuels 45,775 4,006,581
--------------
INDIA 12.9%
National Aluminium Co. Ltd. Metals & Mining 665,030 5,391,961
Oil & Natural Gas Corp. Ltd. Oil, Gas & Consumable Fuels 270,795 6,989,490
Peninsula Land Ltd. Real Estate Management & Development 846,798 1,418,166
Sesa Goa Ltd. Metals & Mining 2,716,280 21,485,246
Tata Consultancy Services Ltd. IT Services 617,600 9,136,039
--------------
44,420,902
--------------
INDONESIA 4.4%
PT Astra International Tbk Automobiles 2,195,000 7,510,127
PT Bank Central Asia Tbk Commercial Banks 15,134,500 7,683,300
--------------
15,193,427
--------------
MEXICO 1.8%
Wal-Mart de Mexico SAB de CV, V Food & Staples Retailing 1,511,000 6,211,525
--------------
PAKISTAN 1.7%
(a) Faysal Bank Ltd. Commercial Banks 10,190,739 1,989,199
MCB Bank Ltd. Commercial Banks 1,462,645 3,769,081
--------------
5,758,280
--------------
POLAND 0.3%
(a) Polnord SA Construction & Engineering 92,806 1,160,515
--------------
RUSSIA 7.6%
Gazprom, ADR Oil, Gas & Consumable Fuels 241,722 5,504,010
LUKOIL Holdings, ADR Oil, Gas & Consumable Fuels 101,006 5,863,399
LUKOIL Holdings, ADR (London Exchange) Oil, Gas & Consumable Fuels 36,510 2,124,882
(a) Mining and Metallurgical Co. Norilsk Nickel Metals & Mining 44,679 6,190,296
Mobile TeleSystems, ADR Wireless Telecommunication Services 77,300 3,871,184
OAO TMK Energy Equipment & Services 660,934 2,801,564
--------------
26,355,335
--------------
SOUTH AFRICA 0.1%
Impala Platinum Holdings Ltd. Metals & Mining 18,800 436,043
--------------
Quarterly Statement of Investments See Notes to Statements of Investments
Templeton Emerging Markets Fund
STATEMENT OF INVESTMENTS, NOVEMBER 30, 2009 (UNAUDITED) (CONTINUED)
SOUTH KOREA 5.5%
Avista Inc. Textiles, Apparel & Luxury Goods 347,028 $ 1,203,014
Hyundai Development Co. Construction & Engineering 165,470 5,537,438
Neopharm Co. Ltd. Personal Products 302,793 2,140,908
SK Energy Co. Ltd. Oil, Gas & Consumable Fuels 109,364 10,228,828
--------------
19,110,188
--------------
TAIWAN 0.0%(b)
MediaTek Inc. Semiconductors & Semiconductor Equipment 908 14,281
--------------
THAILAND 7.9%
Amata Corp. Public Co. Ltd., fgn. Real Estate Management & Development 7,206,800 1,517,678
Hemaraj Land and Development Public Co. Ltd.,
fgn. Real Estate Management & Development 29,653,100 677,989
Kasikornbank Public Co. Ltd., fgn. Commercial Banks 2,251,200 5,892,130
Kiatnakin Bank Public Co. Ltd., fgn. Consumer Finance 8,084,600 6,080,475
Land and Houses Public Co. Ltd., fgn. Real Estate Management & Development 8,514,132 1,639,303
PTT Exploration and Production Public Co.
Ltd., fgn. Oil, Gas & Consumable Fuels 1,226,600 4,815,623
PTT Public Co. Ltd., fgn. Oil, Gas & Consumable Fuels 578,000 3,895,066
Siam Cement Public Co. Ltd., fgn. Construction Materials 415,120 2,847,394
--------------
27,365,658
--------------
TURKEY 6.7%
Akbank TAS Commercial Banks 2,952,231 15,840,014
Tupras-Turkiye Petrol Rafinerileri AS Oil, Gas & Consumable Fuels 427,186 7,267,445
--------------
23,107,459
--------------
UNITED KINGDOM 2.4%
(a) Anglo American PLC Metals & Mining 189,200 8,150,547
--------------
TOTAL COMMON STOCKS (COST $188,606,787) 277,466,913
--------------
PREFERRED STOCKS 19.4%
BRAZIL 19.4%
Banco Bradesco SA, ADR, pfd. Commercial Banks 624,222 13,227,264
Petroleo Brasileiro SA, ADR, pfd. Oil, Gas & Consumable Fuels 670,320 30,204,619
Vale SA, ADR, pfd., A Metals & Mining 966,300 23,674,350
--------------
TOTAL PREFERRED STOCKS (COST $18,224,142) 67,106,233
--------------
TOTAL INVESTMENTS BEFORE SHORT TERM
INVESTMENTS (COST $206,830,929) 344,573,146
--------------
SHORT TERM INVESTMENTS (COST $993,811) 0.3%
MONEY MARKET FUNDS 0.3%
UNITED STATES 0.3%
(c) Institutional Fiduciary Trust Money Market
Portfolio, 0.00% 993,811 993,811
--------------
TOTAL INVESTMENTS (COST $207,824,740) 100.1% 345,566,957
OTHER ASSETS, LESS LIABILITIES (0.1)% (408,773)
--------------
NET ASSETS 100.0% $ 345,158,184
==============
(a) Non-income producing.
(b) Rounds to less than 0.1% of net assets.
(c) The Institutional Fiduciary Trust Money Market Portfolio is managed by an
affiliate of the Fund's investment manager. The rate shown is the
annualized seven-day yield at period end.
Templeton Emerging Markets Fund
STATEMENT OF INVESTMENTS, NOVEMBER 30, 2009 (UNAUDITED) (CONTINUED)
ABBREVIATIONS
SELECTED PORTFOLIO
ADR American Depository Receipt
Templeton Emerging Markets Fund
NOTES TO STATEMENT OF INVESTMENTS (UNAUDITED)
1. ORGANIZATION
Templeton Emerging Markets Fund (Fund) is registered under the Investment
Company Act of 1940, as amended, as a closed-end investment company.
2. SECURITY VALUATION
Equity and other securities listed on a securities exchange or on the NASDAQ
National Market System are valued at the last quoted sale price or the official
closing price of the day, respectively. Over-the-counter securities and listed
securities for which there is no reported sale are valued within the range of
the most recent quoted bid and ask prices. Securities that trade in multiple
markets or on multiple exchanges are valued according to the broadest and most
representative market. Certain equity securities are valued based upon
fundamental characteristics or relationships to similar securities. Investments
in open-end mutual funds are valued at the closing net asset value.
Foreign equity securities are valued as of the close of trading on the foreign
stock exchange on which the security is primarily traded, or the NYSE, whichever
is earlier. If no sale is reported at that time, the foreign equity security
will be valued within the range of the most recent quoted bid and ask prices.
The value is then converted into its U.S. dollar equivalent at the foreign
exchange rate in effect at the close of the NYSE on the day that the value of
the security is determined. Occasionally, events may impact the availability or
reliability of foreign exchange rates used to convert to the U.S. dollar
equivalent value. If such an event occurs, the foreign exchange rate will be
valued at fair value using procedures established and approved by the Fund's
Board of Trustees.
The Fund has procedures to determine the fair value of individual securities and
other assets for which market prices are not readily available or which may not
be reliably priced. Methods for valuing these securities may include:
fundamental analysis based upon the underlying investment book value,
anticipated future cash flows, market changes in comparable or similar
securities, matrix pricing, discounts from market prices of similar securities,
or discounts applied due to the nature and duration of restrictions on the
disposition of the securities. Due to the inherent uncertainty of valuations of
such securities, the fair values may differ significantly from the values that
would have been used had a ready market for such investments existed.
Occasionally, events occur between the time at which trading in a security is
completed and the close of the NYSE that might call into question the
availability (including the reliability) of the value of a portfolio security
held by the Fund. The investment manager monitors price movements following the
close of trading in foreign stock markets through a series of country specific
market proxies (such as baskets of American Depository Receipts, futures
contracts and exchange traded funds). These price movements are measured against
established trigger thresholds for each specific market proxy to assist in
determining if an event has occurred. If such an event occurs, the securities
may be valued using fair value procedures, which may include the use of
independent pricing services. At November 30, 2009, a market event occurred
resulting in a portion of the securities held by the Fund being fair valued. All
security valuation procedures are approved by the Fund's Board of Trustees.
3. INCOME TAXES
At November 30, 2009, the cost of investments and net unrealized appreciation
(depreciation) for income tax purposes were as follows:
Cost of investments $ 209,026,052
-------------
Unrealized appreciation $ 156,398,980
Unrealized depreciation (19,858,075)
-------------
Net unrealized appreciation (depreciation) $ 136,540,905
=============
4. FAIR VALUE MEASUREMENTS
The Fund follows a fair value hierarchy that distinguishes between market data
obtained from independent sources (observable inputs) and the Fund's own market
assumptions (unobservable inputs). These inputs are used in determining the
value of the Fund's investments and are summarized in the following fair value
hierarchy:
- Level 1 - quoted prices in active markets for identical securities
- Level 2 - other significant observable inputs (including quoted prices
for similar securities, interest rates, prepayment speed, credit risk,
etc.)
- Level 3 - significant unobservable inputs (including the Fund's own
assumptions in determining the fair value of investments)
The inputs or methodology used for valuing securities are not an indication of
the risk associated with investing in those securities.
The following is a summary of the inputs used as of November 30, 2009, in
valuing the Fund's assets carried at fair value:
LEVEL 1 LEVEL 2 LEVEL 3 TOTAL
------------ ---------- ------- ------------
ASSETS:
Investments in Securities:
Equity Investments:(a)
Pakistan $ -- $5,758,280 $-- $ 5,758,280
Other Equity Investments(b) 338,814,866 -- -- 338,814,866
Short Term Investments 993,811 -- -- 993,811
------------ ---------- --- ------------
Total Investments in Securities $339,808,677 $5,758,280 $-- $345,566,957
============ ========== === ============
(a) Includes common and preferred stock.
(b) For detailed industry descriptions, see the accompanying Statement of
Investments.
5. SUBSEQUENT EVENTS
The Fund has evaluated subsequent events through January 22, 2010, the issuance
date of the financial statements and determined that no events have occurred
that require disclosure.
For information on the Fund's policy regarding other significant accounting
policies, please refer to the Fund's most recent semiannual or annual
shareholder report.
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 Laura F. Fergerson, Chief Executive Officer - Finance and
Administration, and Mark H. Otani, Chief Financial Officer and Chief Accounting
Officer.
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934 and the
Investment Company Act of 1940, the registrant has duly caused this report to be
signed on its behalf by the undersigned, thereunto duly authorized.
TEMPLETON EMERGING MARKETS FUND
By /s/LAURA F. FERGERSON
--------------------------------
Laura F. Fergerson
Chief Executive Officer -
Finance and Administration
Date January 27, 2010
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/LAURA F. FERGERSON
--------------------------------
Laura F. Fergerson
Chief Executive Officer -
Finance and Administration
Date January 27, 2010
By /s/MARK H. OTANI
----------------------------------
Mark H. Otani
Chief Financial Officer and
Chief Accounting Officer
Date January 27, 2010