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: 11/30/07 ------------ ITEM 1. SCHEDULE OF INVESTMENTS. Templeton Emerging Markets Fund QUARTERLY STATEMENT OF INVESTMENTS NOVEMBER 30, 2007 -------------------------------------------------------------------------------- CONTENTS Statement of Investments ................................................... 3 Notes to Statement of Investments .......................................... 6 [LOGO](R) FRANKLIN TEMPLETON INVESTMENTS Franklin o TEMPLETON o Mutual Series Quarterly Statement of Investments | 1 This page intentionally left blank. Templeton Emerging Markets Fund STATEMENT OF INVESTMENTS, NOVEMBER 30, 2007 (UNAUDITED) ------------------------------------------------------------------------------------------------------------------------------------ INDUSTRY SHARES/RIGHTS VALUE ------------------------------------------------------------------------------------------------------------------------------------ LONG TERM INVESTMENTS 99.6% COMMON STOCKS AND RIGHTS 82.9% AUSTRIA 1.4% OMV AG ........................................ Oil, Gas & Consumable Fuels 89,020 $ 6,324,051 ---------------- BRAZIL 2.4% Centrais Eletricas Brasileiras SA ............. Electric Utilities 317,988 4,420,921 Souza Cruz SA ................................. Tobacco 229,973 6,484,057 ---------------- 10,904,978 ---------------- CHINA 17.8% Aluminum Corp. of China Ltd., H ............... Metals & Mining 9,792,000 22,084,334 China Petroleum and Chemical Corp., H ......... Oil, Gas & Consumable Fuels 7,874,000 11,852,540 Chiwan Wharf Holdings Ltd., B ................. Transportation Infrastructure 991,000 2,013,578 CNOOC Ltd. .................................... Oil, Gas & Consumable Fuels 6,512,000 12,010,393 Denway Motors Ltd. ............................ Automobiles 17,270,730 11,268,414 People's Food Holdings Ltd. ................... Food Products 543,000 435,075 PetroChina Co. Ltd., H ........................ Oil, Gas & Consumable Fuels 11,688,000 22,547,507 ---------------- 82,211,841 ---------------- HONG KONG 2.2% Dairy Farm International Holdings Ltd. ........ Food & Staples Retailing 1,595,100 7,337,460 Tack Fat Group International Ltd. ............. Textiles, Apparel & Luxury Goods 15,029,000 1,988,180 Victory City International Holdings Ltd. ...... Textiles, Apparel & Luxury Goods 3,336,000 916,913 ---------------- 10,242,553 ---------------- HUNGARY 1.8% MOL Hungarian Oil and Gas Nyrt. ............... Oil, Gas & Consumable Fuels 56,975 8,194,527 ---------------- INDIA 6.4% Hindalco Industries Ltd. ...................... Metals & Mining 791,800 3,712,564 National Aluminium Co. Ltd. ................... Metals & Mining 613,230 5,684,636 Oil & Natural Gas Corp. Ltd. .................. Oil, Gas & Consumable Fuels 250,395 7,417,762 Peninsula Land Ltd. ........................... Textiles, Apparel & Luxury Goods 305,000 1,017,181 Sesa Goa Ltd. ................................. Metals & Mining 135,814 11,867,745 ---------------- 29,699,888 ---------------- INDONESIA 1.9% PT Astra International Tbk .................... Automobiles 1,409,000 3,759,339 PT Bank Central Asia Tbk ...................... Commercial Banks 6,424,500 4,868,084 ---------------- 8,627,423 ---------------- MEXICO 2.5% Kimberly Clark de Mexico SAB de CV, A ......... Household Products 1,572,800 6,417,384 Telefonos de Mexico SAB de CV, L, ADR ......... Diversified Telecommunication Services 133,674 4,982,030 ---------------- 11,399,414 ---------------- PAKISTAN 2.0% Faysal Bank Ltd. .............................. Commercial Banks 5,431,500 5,764,041 MCB Bank Ltd. ................................. Commercial Banks 589,450 3,582,893 ---------------- 9,346,934 ---------------- Quarterly Statement of Investments | 3 Templeton Emerging Markets Fund STATEMENT OF INVESTMENTS, NOVEMBER 30, 2007 (UNAUDITED) (CONTINUED) ------------------------------------------------------------------------------------------------------------------------------------ INDUSTRY SHARES/RIGHTS VALUE ------------------------------------------------------------------------------------------------------------------------------------ LONG TERM INVESTMENTS (CONTINUED) COMMON STOCKS AND RIGHTS (CONTINUED) POLAND 3.1% Grupa Lotos SA ................................ Oil, Gas & Consumable Fuels 306,000 $ 5,830,698 a Polski Koncern Naftowy Orlen SA ............... Oil, Gas & Consumable Fuels 404,750 8,614,844 ---------------- 14,445,542 ---------------- RUSSIA 9.9% Gazprom, ADR .................................. Oil, Gas & Consumable Fuels 231,422 12,242,224 LUKOIL, ADR ................................... Oil, Gas & Consumable Fuels 101,006 8,625,912 LUKOIL, ADR (London Exchange) ................. Oil, Gas & Consumable Fuels 36,510 3,132,558 Mining and Metallurgical Co. Norilsk Nickel ... Metals & Mining 44,679 12,791,598 Mobile TeleSystems, ADR ....................... Wireless Telecommunication Services 77,300 7,011,110 OAO TMK, GDR .................................. Energy Equipment & Services 41,000 1,793,750 ---------------- 45,597,152 ---------------- SOUTH AFRICA 0.3% JD Group Ltd. ................................. Specialty Retail 163,080 1,294,571 ---------------- SOUTH KOREA 10.1% Avista Inc. ................................... Textiles, Apparel & Luxury Goods 178,230 2,718,484 Hyundai Development Co. ....................... Construction & Engineering 104,630 9,359,509 Kangwon Land Inc. ............................. Hotels, Restaurants & Leisure 330,008 8,311,551 Neopharm Co. Ltd. ............................. Household Products 174,065 2,588,819 a SK Energy Co. Ltd. ............................ Oil, Gas & Consumable Fuels 78,859 16,222,961 SK Holdings Co. Ltd. .......................... Industrial Conglomerates 32,210 7,517,940 ---------------- 46,719,264 ---------------- SWEDEN 1.2% Oriflame Cosmetics SA, SDR .................... Personal Products 91,120 5,541,920 ---------------- TAIWAN 3.7% MediaTek Inc. ................................. Semiconductors & Semiconductor Equipment 210,094 2,733,988 Taiwan Mobile Co. Ltd. ........................ Wireless Telecommunication Services 5,208,372 7,035,942 Taiwan Semiconductor Manufacturing Co. Ltd. ........................................ Semiconductors & Semiconductor Equipment 3,878,007 7,281,401 ---------------- 17,051,331 ---------------- THAILAND 7.3% Amata Corp. Public Co. Ltd., fgn. ............. Real Estate Management & Development 4,557,300 2,356,238 Kasikornbank Public Co. Ltd., fgn. ............ Commercial Banks 2,251,200 5,719,867 Kiatnakin Bank Public Co. Ltd., fgn. .......... Consumer Finance 6,640,700 5,571,929 Land and Houses Public Co. Ltd., fgn. ......... Household Durables 6,872,332 1,746,128 PTT Exploration and Production Public Co. Ltd., fgn. .................................. Oil, Gas & Consumable Fuels 1,226,600 5,508,330 PTT Public Co. Ltd., fgn. ..................... Oil, Gas & Consumable Fuels 578,000 6,489,106 Siam Cement Public Co. Ltd., fgn. ............. Construction Materials 608,620 4,243,572 Siam Commercial Bank Public Co. Ltd., fgn. .... Commercial Banks 918,100 2,332,716 a True Corp. Public Co. Ltd., fgn., rts., 3/28/08 ..................................... Diversified Telecommunication Services 246,818 -- ---------------- 33,967,886 ---------------- 4 | Quarterly Statement of Investments Templeton Emerging Markets Fund STATEMENT OF INVESTMENTS, NOVEMBER 30, 2007 (UNAUDITED) (CONTINUED) ------------------------------------------------------------------------------------------------------------------------------------ INDUSTRY SHARES/RIGHTS VALUE ------------------------------------------------------------------------------------------------------------------------------------ LONG TERM INVESTMENTS (CONTINUED) COMMON STOCKS AND RIGHTS (CONTINUED) TURKEY 8.9% Akbank TAS .................................... Commercial Banks 2,723,231 $ 19,788,582 Tupras-Turkiye Petrol Rafineleri AS ........... Oil, Gas & Consumable Fuels 427,186 11,099,256 Turkcell Iletisim Hizmetleri AS ............... Wireless Telecommunication Services 957,217 10,352,664 ---------------- 41,240,502 ---------------- TOTAL COMMON STOCKS AND RIGHTS (COST $198,617,782) ......................... 382,809,777 ---------------- PREFERRED STOCKS 16.7% BRAZIL 16.7% Banco Bradesco SA, ADR, pfd. .................. Commercial Banks 416,148 13,379,158 Companhia Vale do Rio Doce, ADR, pfd., A ...... Metals & Mining 966,300 27,955,059 Petroleo Brasileiro SA, ADR, pfd. ............. Oil, Gas & Consumable Fuels 335,160 27,204,938 Unibanco - Uniao de Bancos Brasileiros SA, GDR, pfd. ................................... Commercial Banks 56,700 8,489,124 ---------------- TOTAL PREFERRED STOCKS (COST $21,348,294) .......................... 77,028,279 ---------------- TOTAL LONG TERM INVESTMENTS (COST $219,966,076) ......................... 459,838,056 ---------------- SHORT TERM INVESTMENT (COST $2,745,719) 0.6% MONEY MARKET FUND 0.6% UNITED STATES 0.6% b Franklin Institutional Fiduciary Trust Money Market Portfolio, 4.61% ..................... 2,745,719 2,745,719 ---------------- TOTAL INVESTMENTS (COST $222,711,795) 100.2% .................. 462,583,775 OTHER ASSETS, LESS LIABILITIES (0.2)% ......... (759,824) ---------------- NET ASSETS 100.0% ............................. $ 461,823,951 ================ SELECTED PORTFOLIO ABBREVIATIONS ADR - American Depository Receipt GDR - Global Depository Receipt SDR - Swedish Depository Receipt a Non-income producing for the twelve months ended November 30, 2007. b The Franklin 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. Quarterly Statement of Investments | See Notes to Statement of Investments. | 5 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 diversified, closed-end investment company. 2. SECURITY VALUATION 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. Investments in open-end mutual funds are valued at the closing net asset value. Foreign 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 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 foreign security is determined. 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, 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. All security valuation procedures are approved by the Fund's Board of Trustees. 6 | Quarterly Statement of Investments Templeton Emerging Markets Fund NOTES TO STATEMENT OF INVESTMENTS (UNAUDITED) (CONTINUED) 3. INCOME TAXES At November 30, 2007, the cost of investments and net unrealized appreciation (depreciation) for income tax purposes were as follows: Cost of investments ........................................... $ 222,944,489 ============== Unrealized appreciation ....................................... $ 241,462,016 Unrealized depreciation ....................................... (1,822,730) -------------- Net unrealized appreciation (depreciation) .................... $ 239,639,286 ============== 4. NEW ACCOUNTING PRONOUNCEMENT In September 2006, the Financial Accounting Standards Board (FASB) issued FASB Statement No. 157, "Fair Value Measurement" (SFAS 157), which defines fair value, establishes a framework for measuring fair value, and expands disclosures about fair value measurements. SFAS 157 is effective for fiscal years beginning after November 15, 2007, and interim periods within those fiscal years. The Fund believes the adoption of SFAS 157 will have no material impact on its financial statements. 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. 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) 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. TEMPLETON EMERGING MARKETS FUND By /s/JIMMY D. GAMBILL ------------------------------- Jimmy D. Gambill Chief Executive Officer - Finance and Administration Date January 25, 2008 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 25, 2008 By /s/GALEN G. VETTER ------------------------------- Galen G. Vetter Chief Financial Officer Date January 25, 2008