FORM N-Q QUARTERLY SCHEDULE OF PORTFOLIO HOLDINGS OF REGISTERED MANAGEMENT INVESTMENT COMPANIES 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) MURRAY L. SIMPSON, 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: 08/31 ----- Date of reporting period: 11/30/04 -------- ITEM 1. SCHEDULE OF INVESTMENTS. TEMPLETON EMERGING MARKETS FUND QUARTERLY STATEMENTS OF INVESTMENTS NOVEMBER 30, 2004 -------------------------------------------------------------------------------- CONTENTS Statement of Investments ................................................ 2 Notes to Statement of Investments ....................................... 7 [LOGO](R) FRANKLIN(R) TEMPLETON(R) INVESTMENTS Franklin o TEMPLETON o Mutual Series Quarterly Statement of Investments | 1 TEMPLETON EMERGING MARKETS FUND STATEMENT OF INVESTMENTS, NOVEMBER 30, 2004 (UNAUDITED) ------------------------------------------------------------------------------------------------------------------------------------ INDUSTRY SHARES VALUE ------------------------------------------------------------------------------------------------------------------------------------ COMMON STOCKS 93.2% ARGENTINA .3% Tenaris SA, ADR .................................. Energy Equipment & Services 17,395 $ 877,752 ----------- AUSTRIA 2.9% Bank Austria Creditanstalt ....................... Commercial Banks 56,161 4,776,991 OMV AG ........................................... Oil & Gas 11,398 3,006,211 ----------- 7,783,202 ----------- BELGIUM 1.9% Inbev ............................................ Beverages 144,250 5,295,161 ----------- BRAZIL 2.1% Centrais Eletricas Brasileiras SA (Taxable) ...... Electric Utilities 67,922,000 1,098,738 Centrais Eletricas Brasileiras SA (Non-Taxable) .. Electric Utilities 17,487,000 282,878 Embraer-Empresa Brasileira De Aeronautica SA ..... Aerospace & Defense 312,066 1,589,012 Souza Cruz SA .................................... Tobacco 170,686 2,177,502 Unibanco Uniao de Bancos Brasileiros SA, GDR ..... Commercial Banks 16,600 464,302 ----------- 5,612,432 ----------- CHINA 10.8% Aluminum Corp. of China Ltd., H .................. Metals & Mining 2,520,000 1,620,433 Anhui Conch Cement Co. Ltd. ...................... Construction Materials 960,000 1,154,366 Beijing Enterprises Holdings Ltd. ................ Industrial Conglomerates 607,711 734,658 China Mobile (Hong Kong) Ltd. .................... Wireless Telecommunication Services 2,187,500 7,159,725 China Petroleum & Chemical Corp., H .............. Oil & Gas 3,166,000 1,353,827 China Resources Enterprise Ltd. .................. Distributors 1,974,000 2,894,093 China Travel International Investment Hong Kong Ltd. ................................. Hotels Restaurants & Leisure 5,642,000 1,705,146 China Unicom Ltd. ................................ Wireless Telecommunication Services 552,000 425,942 Citic Pacific Ltd. ............................... Industrial Conglomerates 757,192 2,147,213 Denway Motors Ltd. ............................... Automobiles 3,192,730 1,149,690 Huadian Power International Corp. Ltd., H ........ Electric Utilities 2,902,000 998,347 Lenovo Group Ltd., H ............................. Computers & Peripherals 7,792,000 2,705,660 PetroChina Co. Ltd., H ........................... Oil & Gas 3,812,000 2,144,823 Shanghai Industrial Holdings Ltd. ................ Industrial Conglomerates 895,000 1,807,104 (a)TCL Communication Technology Holdings ............ Communications Equipment 212,715 19,423 TCL International Holdings Inc. .................. Household Durables 1,620,000 453,143 Travelsky Technology Ltd., H ..................... IT Services 1,248,000 979,050 ----------- 29,452,643 ----------- CROATIA .6% Pliva D D, GDR, Reg S ............................ Pharmaceuticals 124,000 1,630,600 ----------- CZECH REPUBLIC .4% Cesky Telecom AS ................................. Diversified Telecommunication Services 70,850 1,058,301 ----------- GREECE 1.2% Hellenic Telecommunications Organization SA (OTE) .......................... Diversified Telecommunication Services 58,340 958,351 Titan Cement Co. ................................. Construction Materials 81,620 2,262,823 ----------- 3,221,174 ----------- 2 | Quarterly Statement of Investments TEMPLETON EMERGING MARKETS FUND STATEMENT OF INVESTMENTS, NOVEMBER 30, 2004 (UNAUDITED) (CONTINUED) ------------------------------------------------------------------------------------------------------------------------------------ INDUSTRY SHARES VALUE ------------------------------------------------------------------------------------------------------------------------------------ COMMON STOCKS (CONT.) HONG KONG 3.2% Cheung Kong Holdings Ltd. ........................ Real Estate 458,000 $ 4,417,609 Cheung Kong Infrastructure Holdings Ltd. ......... Electric Utilities 284,000 816,312 Guoco Group Ltd. ................................. Diversified Financial Services 131,000 1,166,679 Henderson Investment Ltd. ........................ Real Estate 870,000 1,297,890 MTR Corp. Ltd. ................................... Road & Rail 712,562 1,136,331 ----------- 8,834,821 ----------- HUNGARY 3.5% Egis RT .......................................... Pharmaceuticals 11,490 665,240 Gedeon Richter Ltd. .............................. Pharmaceuticals 13,339 1,642,023 Matav RT ......................................... Diversified Telecommunication Services 420,639 1,786,709 MOL Magyar Olaj-Es Gazipari RT ................... Oil & Gas 79,980 5,387,971 ----------- 9,481,943 ----------- INDIA 3.2% Gail (India) Ltd. ................................ Gas Utilities 331,410 1,617,207 Hindustan Lever Ltd. ............................. Household Products 827,600 2,688,305 Hindustan Petroleum Corp. Ltd. ................... Oil & Gas 355,323 2,704,447 Tata Motors Ltd. ................................. Automobiles 54,800 594,611 Tata Tea Ltd. .................................... Food Products 123,115 1,224,510 ----------- 8,829,080 ----------- INDONESIA .1% Bk Danamon ....................................... Commercial Banks 60,000 29,333 PT Perusahaan Gas Negara ......................... Gas Utilities 1,655,500 257,522 PT Perusahaan Gas Negara, 144A ................... Gas Utilities 102,500 15,945 ----------- 302,800 ----------- ISRAEL .2% (a)Check Point Software Technologies Ltd. .......... Software 26,200 621,988 ----------- MALAYSIA 1.7% Kuala Lumpur Kepong Bhd. ......................... Food Products 150,600 273,458 Resorts World Bhd. ............................... Hotels Restaurants & Leisure 790,600 2,007,708 SIME Darby Bhd. .................................. Industrial Conglomerates 548,000 872,474 Tanjong PLC ...................................... Hotels Restaurants & Leisure 84,100 316,481 YTL Corp. Bhd. ................................... Electric Utilities 419,700 563,282 YTL Power International Bhd. ..................... Water Utilities 964,600 487,377 ----------- 4,520,780 ----------- MEXICO 3.4% Fomento Economico Mexicano SA de CV Femsa, ADR ................................ Beverages 41,350 1,975,703 Kimberly Clark de Mexico SA de CV, A ............. Household Products 1,765,200 5,897,499 Telefonos de Mexico SA de CV (Telmex), L, ADR ................................ Diversified Telecommunication Services 38,012 1,330,800 ----------- 9,204,002 ----------- PHILIPPINES .9% San Miguel Corp., B .............................. Beverages 1,771,090 2,332,870 ----------- Quarterly Statement of Investments | 3 TEMPLETON EMERGING MARKETS FUND STATEMENT OF INVESTMENTS, NOVEMBER 30, 2004 (UNAUDITED) (CONTINUED) ------------------------------------------------------------------------------------------------------------------------------------ INDUSTRY SHARES VALUE ------------------------------------------------------------------------------------------------------------------------------------ COMMON STOCKS (CONT.) POLAND 2.9% Polski Koncern Naftowy Orlen SA .................. Oil & Gas 336,542 $ 3,994,627 Telekomunikacja Polska SA ........................ Diversified Telecommunication Services 722,400 3,931,943 ------------ 7,926,570 ------------ RUSSIA .9% (b)Lukoil Holdings, ADR ............................. Oil & Gas 20,499 2,558,275 ------------ SINGAPORE 5.8% Comfortdelgro Corp. Ltd. ......................... Road & Rail 1,530,000 1,336,000 Dairy Farm International Holdings Ltd. ........... Food & Staples Retailing 231,100 603,171 Fraser & Neave Ltd. .............................. Beverages 489,367 4,362,811 Keppel Corp. Ltd. ................................ Industrial Conglomerates 885,000 4,350,288 Singapore Press Holdings Ltd. .................... Media 456,250 1,314,994 Singapore Technologies Engineering Ltd. .......... Aerospace & Defense 676,000 875,108 Singapore Telecommunications Ltd. ................ Diversified Telecommunication Services 2,000,142 2,894,597 ------------ 15,736,969 ------------ SOUTH AFRICA 11.2% Anglo American PLC ............................... Metals & Mining 322,577 7,686,351 Liberty Group Ltd. ............................... Insurance 25,388 279,541 Nedcor Ltd. ...................................... Commercial Banks 165,130 2,159,119 Nedcor Ltd., 144A ................................ Commercial Banks 26,167 342,141 Old Mutual PLC ................................... Insurance 833,910 2,090,909 Remgro Ltd. ...................................... Diversified Financial Services 400,639 6,065,588 SABMiller PLC .................................... Beverages 453,548 7,490,857 Sappi Ltd. ....................................... Paper & Forest Products 123,000 1,666,240 Sasol Ltd. ....................................... Oil & Gas 136,800 2,719,525 ------------ 30,500,271 ------------ SOUTH KOREA 17.2% CJ Corp. ......................................... Food Products 41,910 2,778,011 Daewoo Shipbuilding & Marine Engineering Co. Ltd. ........................... Machinery 285,860 4,225,875 Hite Brewery Co. Ltd. ............................ Beverages 34,050 2,753,877 Hyundai Development Co. .......................... Construction & Engineering 187,690 3,069,989 Kangwon Land Inc. ................................ Hotels Restaurants & Leisure 314,408 4,168,118 Kia Motors Corp. ................................. Automobiles 91,550 872,279 Korea Gas Corp. .................................. Gas Utilities 43,680 1,435,170 LG Chem Ltd. ..................................... Chemicals 67,290 2,791,717 LG Electronics Inc. .............................. Household Durables 48,660 2,937,700 LG Household & Health Care Ltd. .................. Household Products 41,230 1,065,649 LG International Corp. ........................... Trading Companies & Distributors 94,560 842,337 LG Petrochemical Co. Ltd. ........................ Chemicals 39,420 986,910 POSCO ............................................ Metals & Mining 13,290 2,478,011 Samsung Electronics Co. Ltd. ..................... Semiconductors & Semiconductor Equipment 19,340 8,014,526 Samsung Fine Chemicals Co. Ltd. .................. Chemicals 103,070 1,818,593 Samsung Heavy Industries Co. Ltd. ................ Machinery 681,820 3,843,163 SK Corp. ......................................... Oil & Gas 13,590 856,747 SK Telecom Co. Ltd. .............................. Wireless Telecommunication Services 11,150 2,105,579 ------------ 47,044,251 ------------ 4 | Quarterly Statement of Investments TEMPLETON EMERGING MARKETS FUND STATEMENT OF INVESTMENTS, NOVEMBER 30, 2004 (UNAUDITED) (CONTINUED) ------------------------------------------------------------------------------------------------------------------------------------ INDUSTRY SHARES VALUE ------------------------------------------------------------------------------------------------------------------------------------ COMMON STOCKS (CONT.) SWEDEN .3% (a)Oriflame Cosmetics, IDR ........................ Personal Products 40,180 $ 852,158 ------------ TAIWAN 12.8% Acer Inc. ...................................... Computers & Peripherals 1,438,134 2,196,715 Chunghwa Telecom Co. Ltd. ...................... Diversified Telecommunication Services 1,232,000 2,447,935 D-Link Corp. ................................... Communications Equipment 1,885,224 2,036,815 Delta Electronics Inc. ......................... Electronic Equipment & Instruments 2,198,229 3,412,339 Elan Microelectronics Corp. .................... Semiconductors & Semiconductor Equipment 1,315,927 719,041 Kinpo Electronics Inc. ......................... Office Electronics 728,680 312,195 Lite-on Technology Corp. ....................... Computers & Peripherals 2,119,900 2,152,149 Media Tek Inc. ................................. Semiconductors & Semiconductor Equipment 267,000 1,715,896 Mega Financial Holdings Co. Ltd. ............... Commercial Banks 3,436,661 2,240,605 Premier Image Technology Corp. ................. Leisure Equipment & Products 455,000 351,739 President Chain Store Corp. .................... Food & Staples Retailing 597,188 889,942 Siliconware Precision Industries Co. Ltd. ...... Semiconductors & Semiconductor Equipment 1,460,000 1,119,590 Sunplus Technology Co. Ltd. .................... Semiconductors & Semiconductor Equipment 1,627,530 2,273,792 Synnex Technology International Corp. .......... Electronic Equipment & Instruments 268,200 395,514 Taiwan Cellular Corp. .......................... Wireless Telecommunication Services 4,773,372 5,112,739 Taiwan Semiconductor Manufacturing Co. ......... Semiconductors & Semiconductor Equipment 2,061,000 3,026,554 UNI-President Enterprises Corp. ................ Food Products 5,266,350 2,599,657 (a)Yuanta Core Pacific Securities Co. ............. Capital Markets 2,556,960 2,024,293 ------------ 35,027,510 ------------ THAILAND 1.1% BEC World Public Co. Ltd., fgn. ................ Media 1,268,400 492,364 (a)Kasikornbank Public Co. Ltd., fgn. ............. Commercial Banks 374,200 545,896 Land and House Public Co. Ltd., fgn. ........... Household Durables 799,900 223,237 Shin Corp. Public Co. Ltd., fgn. ............... Wireless Telecommunication Services 268,300 258,668 Siam Cement Public Co. Ltd., fgn. .............. Construction Materials 37,800 241,675 Thai Airways International Public Co. Ltd., fgn. Airlines 50,000 61,208 (a)Thai Military Bank Public Co. Ltd., fgn. ....... Commercial Banks 11,571,500 1,144,966 (a)True Corp. PLC, rts., 3/28/08 .................. Diversified Telecommunication Services 246,818 -- ------------ 2,968,014 ------------ TURKEY 3.0% (a)Arcelik AS, Br. ................................ Household Durables 455,547,650 2,450,377 Migros Turk T.A.S .............................. Food & Staples Retailing 344,485,000 2,225,976 Tupras-Turkiye Petrol Rafineleri AS ............ Oil & Gas 213,780,000 2,165,429 Turkiye Is Bankasi AS, C ....................... Commercial Banks 264,376,000 1,246,620 ------------ 8,088,402 ------------ UNITED KINGDOM 1.6% HSBC Holdings PLC .............................. Commercial Banks 208,883 3,572,854 Provident Financial PLC ........................ Consumer Finance 78,116 917,019 ------------ 4,489,873 ------------ TOTAL COMMON STOCKS (COST $182,277,849) ........ $254,251,842 ------------ Quarterly Statement of Investments | 5 TEMPLETON EMERGING MARKETS FUND STATEMENT OF INVESTMENTS, NOVEMBER 30, 2004 (UNAUDITED) (CONTINUED) ------------------------------------------------------------------------------------------------------------------------------------ INDUSTRY SHARES VALUE ------------------------------------------------------------------------------------------------------------------------------------ PREFERRED STOCKS 5.5% BRAZIL 5.5% Banco Bradesco SA, ADR, pfd. ................................. Commercial Banks 71,909 $ 4,682,682 Cia De Bebidas Das Americas (Ambev), ADR, pfd. ............... Beverages 203,900 5,252,464 Cia Vale do Rio Doce, ADR, A, pfd. ........................... Metals & Mining 79,200 1,642,608 Petroleo Brasileiro SA, ADR, pfd. ............................ Oil & Gas 67,343 2,321,987 Suzano Bahia Sul Papel e cel, pfd., A ........................ Paper & Forest Products 89,882 404,799 Usinas Siderurgicas De Minas Gerais SA, pfd. ................. Metals & Mining 32,390 654,349 ------------- TOTAL PREFERRED STOCKS (COST $11,560,598) .................... 14,958,889 ------------- SHORT TERM INVESTMENTS 1.3% MONEY FUND (COST $3,634,612) 1.3% (c)Franklin Institutional Fiduciary Trust Money Market Portfolio ..................................... 3,634,612 3,634,612 ------------- TOTAL INVESTMENTS (COST $197,473,059) 100.0% ................. 272,845,343 OTHER ASSETS, LESS LIABILITIES ............................... (18,244) ------------- NET ASSETS 100.0% ............................................ $ 272,827,099 ============= (a) Non-income producing. (b) See Note 2 regarding other considerations. (c) The Franklin Institutional Fiduciary Trust Money Market Portfolio is managed by an affiliate of the fund's investment manager. 6 | See Notes to Statement of Investments. | Quarterly Statement of Investments 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 closed-end, diversified investment company. 1. INCOME TAXES At November 30, 2004, the net unrealized appreciation (depreciation) based on the cost of investments for income tax purposes was as follows: Cost of investments .................................... $ 200,829,785 ------------- Unrealized appreciation ................................ $ 73,678,946 Unrealized depreciation ................................ (1,663,388) ------------- Net unrealized appreciation (depreciation) ............. $ 72,015,558 ============= 2. OTHER CONSIDERATIONS TAML, as the Fund's Manager, may serve as a member on the board of directors of certain companies in which the Fund invests and/or may represent the Fund in certain corporate negotiations. Currently, the Manager serves in one or more of these capacities for Lukoil Holdings. As a result of this involvement, the Manager may be in possession of certain material non-public information which, pursuant to the Fund's policies and the requirements of the federal securities laws, could prevent the Fund from trading in the securities of such companies for limited or extended periods of time. 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 | 7 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 ----------------------- Jimmy D. Gambill Chief Executive Officer - Finance and Administration Date January 20, 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 ----------------------- Jimmy D. Gambill Chief Executive Officer - Finance and Administration Date January 20, 2005 By /s/GALEN G. VETTER ------------------------------ Galen G. Vetter Chief Financial Officer Date January 20, 2005