N-Q 1 nq-emf113015.htm nq-emf113015.htm - Generated by SEC Publisher for SEC Filing

Washington, DC 20549









Investment Company Act file number 811-04985


Templeton Emerging Markets Fund

(Exact name of registrant as specified in charter)


300 S.E. 2nd Street, Fort Lauderdale, FL 33301-1923

 (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:  11/30/15



Item 1. Schedule of Investments.





























Templeton Emerging Markets Fund        
Statement of Investments, November 30, 2015 (unaudited)      
  Industry Shares   Value
Common Stocks 91.0%        
Brazil 2.4%        
BM&F BOVESPA SA Diversified Financial Services 95,100 $ 279,511
Cia Hering Specialty Retail 719,900   2,808,140
Lojas Americanas SA Multiline Retail 329,800   1,023,032
M Dias Branco SA Food Products 54,300   1,010,624
Totvs SA Software 56,700   490,565
China 19.7%        
Anhui Tianda Oil Pipe Co. Ltd., H Energy Equipment & Services 8,057,800   1,496,651
aBaidu Inc., ADR Internet Software & Services 18,032   3,930,435
Brilliance China Automotive Holdings Ltd. Automobiles 13,392,900   17,033,071
China Petroleum and Chemical Corp., H Oil, Gas & Consumable Fuels 7,033,000   4,263,634
Guangzhou Automobile Group Co. Ltd., H Automobiles 4,899,334   4,676,384
bInner Mongolia Yitai Coal Co. Ltd., B Oil, Gas & Consumable Fuels 1,710,860   1,235,241
PetroChina Co. Ltd., H Oil, Gas & Consumable Fuels 4,790,800   3,404,874
bShenzhen Chiwan Wharf Holdings Ltd., B Transportation Infrastructure 2,126,967   4,241,424
Uni-President China Holdings Ltd. Food Products 2,788,000   2,301,517
Win Hanverky Holdings Ltd. Textiles, Apparel & Luxury Goods 13,227,200   3,053,953
Hong Kong 6.1%        
Dairy Farm International Holdings Ltd. Food & Staples Retailing 1,144,200   6,899,526
MGM China Holdings Ltd. Hotels, Restaurants & Leisure 782,800   1,035,952
Victory City International Holdings Ltd. Textiles, Apparel & Luxury Goods 17,217,906   1,821,107
VTech Holdings Ltd. Communications Equipment 402,200   4,508,201
Hungary 0.4%        
Richter Gedeon Nyrt Pharmaceuticals 50,470   958,964
India 6.5%        
Bajaj Holdings and Investment Ltd. Diversified Financial Services 813   20,883
ICICI Bank Ltd. Banks 492,510   2,035,900
Infosys Ltd. IT Services 100,560   1,645,955
Oil & Natural Gas Corp. Ltd. Oil, Gas & Consumable Fuels 1,249,880   4,403,178
Peninsula Land Ltd. Real Estate Management &      
  Development 43,169   16,465
Reliance Industries Ltd. Oil, Gas & Consumable Fuels 173,400   2,519,779
Tata Chemicals Ltd. Chemicals 92,200   581,023
Tata Consultancy Services Ltd. IT Services 107,960   3,840,985
aTata Motors Ltd., A Automobiles 11,700   52,598
Indonesia 4.7%        
Astra International Tbk PT Automobiles 18,200,600   7,794,619
Bank Danamon Indonesia Tbk PT Banks 14,841,785   3,030,578
Jordan 0.3%        
Arab Potash Co. PLC Chemicals 22,938   666,323
Mexico 0.0%        
America Movil SAB de CV, L, ADR Wireless Telecommunication      
  Services 100   1,619
Nemak SAB de CV Auto Components 59,200   83,508
Pakistan 4.3%        
MCB Bank Ltd. Banks 3,999,810   7,739,917


Quarterly Statement of Investments | See Notes to Statement of Investments.


Templeton Emerging Markets Fund      
Statement of Investments, November 30, 2015 (unaudited) (continued)    
Oil & Gas Development Co. Ltd. Oil, Gas & Consumable Fuels 1,903,500 2,190,378
Peru 1.4%      
aCompania de Minas Buenaventura SA, ADR Metals & Mining 691,565 3,278,018
Russia 6.1%      
Gazprom PAO, ADR Oil, Gas & Consumable Fuels 928,744 3,836,642
LUKOIL PJSC, ADR Oil, Gas & Consumable Fuels 101,006 3,891,761
LUKOIL PJSC, ADR (London Stock Exchange) Oil, Gas & Consumable Fuels 89,660 3,454,600
a,cMail.ru Group Ltd., GDR, Reg S Internet Software & Services 51,842 1,192,366
cTMK PAO, GDR, Reg S Energy Equipment & Services 165,233 561,792
aYandex NV, A Internet Software & Services 80,400 1,337,052
Singapore 0.9%      
SembCorp Marine Ltd. Machinery 1,392,000 2,032,765
South Africa 3.2%      
aImpala Platinum Holdings Ltd. Metals & Mining 258,265 565,188
Kumba Iron Ore Ltd. Metals & Mining 387,403 1,206,269
Massmart Holdings Ltd. Food & Staples Retailing 86,669 692,805
MTN Group Ltd. Wireless Telecommunication    
  Services 109,540 1,100,487
Naspers Ltd., N Media 25,287 3,771,182
South Korea 12.2%      
Daelim Industrial Co. Ltd. Construction & Engineering 23,656 1,472,547
Daewoo Shipbuilding & Marine Engineering Co. Ltd. Machinery 70,361 368,830
Fila Korea Ltd. Textiles, Apparel & Luxury Goods 8,190 655,980
Hankook Tire Co. Ltd. Auto Components 17,600 700,285
Hyundai Development Co. Construction & Engineering 200,410 7,084,251
Interpark Corp. Internet & Catalog Retail 600 5,845
KT Skylife Co. Ltd. Media 59,360 951,914
Samsung Electronics Co. Ltd. Technology Hardware, Storage &    
  Peripherals 5,270 5,833,999
SK Hynix Inc. Semiconductors & Semiconductor    
  Equipment 160,300 4,367,282
aSK Innovation Co. Ltd. Oil, Gas & Consumable Fuels 63,020 6,927,544
Taiwan 4.9%      
Catcher Technology Co. Ltd. Technology Hardware, Storage &    
  Peripherals 122,000 1,181,363
Hon Hai Precision Industry Co. Ltd. Electronic Equipment, Instruments    
  & Components 1,008,400 2,595,664
Largan Precision Co. Ltd. Electronic Equipment, Instruments    
  & Components 16,000 1,233,089
Pegatron Corp. Technology Hardware, Storage &    
  Peripherals 650,000 1,714,955
Taiwan Semiconductor Manufacturing Co. Ltd. Semiconductors & Semiconductor    
  Equipment 1,095,000 4,664,072
Thailand 11.8%      
Kasikornbank PCL, fgn. Banks 1,602,200 7,579,484
Kiatnakin Bank PCL, fgn. Banks 5,357,500 5,457,682
Land and Houses PCL, fgn. Real Estate Management &    
  Development 8,182,958 2,089,703
PTT Exploration and Production PCL, fgn. Oil, Gas & Consumable Fuels 1,050,747 1,913,515
PTT PCL, fgn. Oil, Gas & Consumable Fuels 93,400 667,329
Siam Commercial Bank PCL, fgn. Banks 1,976,700 7,254,704
Thai Beverage PCL, fgn. Beverages 2,347,000 1,139,684



Templeton Emerging Markets Fund          
Statement of Investments, November 30, 2015 (unaudited) (continued)        
Univanich Palm Oil PCL, fgn. Food Products 5,236,000   1,169,076  
Turkey 1.4%          
Akbank TAS Banks 1,403,707   3,339,177  
United Kingdom 4.7%          
Unilever PLC Personal Products 253,876   10,836,517  
Total Common Stocks (Cost $193,571,117)       211,221,932  
Preferred Stocks 5.9%          
Brazil 5.9%          
Banco Bradesco SA, ADR, pfd. Banks 1,157,965   6,206,693  
Itau Unibanco Holding SA, ADR, pfd. Banks 683,680   4,840,454  
aPetroleo Brasileiro SA, ADR, pfd. Oil, Gas & Consumable Fuels 670,320   2,594,138  
Total Preferred Stocks (Cost $22,462,601)       13,641,285  
Total Investments before Short Term Investments (Cost $216,033,718)       224,863,217  
Short Term Investments (Cost $8,571,182) 3.7%          
Money Market Funds 3.7%          
United States 3.7%          
a,dInstitutional Fiduciary Trust Money Market Portfolio   8,571,182   8,571,182  
Total Investments (Cost $224,604,900) 100.6%       233,434,399  
Other Assets, less Liabilities (0.6)%       (1,409,150 )
Net Assets 100.0%     $ 232,025,249  


Rounds to less than 0.1% of net assets.
aNon-income producing.
bAt November 30, 2015, pursuant to the Fund's policies and the requirements of applicable securities law, the Fund may be restricted from trading these securities for a limited
or extended period of time.
cSecurity was purchased pursuant to Regulation S under the Securities Act of 1933, which exempts from registration securities offered and sold outside of the United States.
Such a security cannot be sold in the United States without either an effective registration statement filed pursuant to the Securities Act of 1933, or pursuant to an exemption
from registration. These securities have been deemed liquid under guidelines approved by the Fund's Board of Trustees. At November 30, 2015, the aggregate value of
these securities was 1,754,158, representing 0.76% of net assets.
dSee Note 5 regarding investments in affiliated management investment companies.
Selected Portfolio
ADR - American Depositary Receipt
GDR - Global Depositary Receipt



Templeton Emerging Markets Fund

Notes to Statement of Investments (unaudited)


Templeton Emerging Markets Fund (Fund) is registered under the Investment Company Act of 1940 (1940 act) as a closed-end management investment company and applies the specialized accounting and reporting guidance in U.S. Generally Accepted Accounting Principles.


The Fund's investments in financial instruments are carried at fair value daily. Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants on the measurement date. The Fund calculates the net asset value (NAV) per share as of 4 p.m. Eastern time each day the New York Stock Exchange (NYSE) is open for trading. Under compliance policies and procedures approved by the Fund’s Board of Trustees (the Board), the Fund’s administrator has responsibility for oversight of valuation, including leading the cross-functional Valuation and Liquidity Oversight Committee (VLOC). The VLOC provides administration and oversight of the Fund's valuation policies and procedures, which are approved annually by the Board. Among other things, these procedures allow the Fund to utilize independent pricing services, quotations from securities and financial instrument dealers, and other market sources to determine fair value.

Equity securities listed on an 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. Foreign equity securities are valued as of the close of trading on the foreign stock exchange on which the security is primarily traded or as of 4 p.m. Eastern time, whichever is earlier. The value is then converted into its U.S. dollar equivalent at the foreign exchange rate in effect at 4 p.m. Eastern time on the day that the value of the security is determined. Over-the-counter (OTC) securities 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 NAV.

The Fund has procedures to determine the fair value of financial instruments for which market prices are not reliable or readily available. Under these procedures, the VLOC convenes on a regular basis to review such financial instruments and considers a number of factors, including significant unobservable valuation inputs, when arriving at fair value. The VLOC primarily employs a market-based approach which may use related or comparable assets or liabilities, recent transactions, market multiples, book values, and other relevant information for the investment to determine the fair value of the investment. An income-based valuation approach may also be used in which the anticipated future cash flows of the investment are discounted to calculate fair value. Discounts may also be applied due to the nature or duration of any restrictions on the disposition of the investments. Due to the inherent uncertainty of valuations of such investments, the fair values may differ significantly from the values that would have been used had an active market existed. The VLOC employs various methods for calibrating these valuation approaches including a regular review of key inputs and assumptions, transactional back-testing or disposition analysis, and reviews of any related market activity.

Trading in securities on foreign securities stock exchanges and OTC markets may be completed before 4 p.m. Eastern time. In addition, trading in certain foreign markets may not take place on every NYSE business day. Occasionally, events occur between the time at which trading in a foreign security is completed and the close of the NYSE that might call into question the reliability of the value of a portfolio security held by the Fund. As a result, differences may arise between the value of the Fund’s portfolio


securities as determined at the foreign market close and the latest indications of value at the close of the NYSE. In order to minimize the potential for these differences, the VLOC 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 Depositary 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 that may call into question the reliability of the values of the foreign securities held by the Fund. If such an event occurs, the securities may be valued using fair value procedures, which may include the use of independent pricing services.

When the last day of the reporting period is a non-business day, certain foreign markets may be open on those days that the NYSE is closed, which could result in differences between the value of the Fund’s portfolio securities on the last business day and the last calendar day of the reporting period. Any significant security valuation changes due to an open foreign market are adjusted and reflected by the Fund for financial reporting purposes.


At November 30, 2015, the cost of investments and net unrealized appreciation (depreciation) for income tax purposes were as follows:

Cost of investments $ 229,562,031  
Unrealized appreciation $ 62,330,612  
Unrealized depreciation   (58,458,244 )
Net unrealized appreciation (depreciation) $ 3,872,368  


Investing in foreign securities may include certain risks and considerations not typically associated with investing in U.S. securities, such as fluctuating currency values and changing local and regional economic, political and social conditions, which may result in greater market volatility. In addition, certain foreign securities may not be as liquid as U.S. securities.


The Fund invests in an affiliated management investment company for purposes other than exercising a controlling influence over the management or policies. Management fees paid by the Fund are waived on assets invested in the affiliated management investment company, in an amount not to exceed the management and administrative fees paid directly or indirectly by each affiliate.

                      % of Affiliated Fund  
  Number of Shares       Number of Shares   Value at     Shares Outstanding  
  Held at Beginning Gross Gross   Held at End of   End of   Investment Realized Held at End of  
  of Period Additions Reductions   Period   Period   Income Gain (Loss) Period  
Non-Controlled Affiliates                        
Institutional Fiduciary Trust Money Market Portfolio         8,237,192             19,225,461 (18,891,471 ) 8,571,182 $ 8,571,182 $ - $ - 0.04 %
6. 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 financial instruments and are summarized in the following fair value hierarchy:

  • Level 1 – quoted prices in active markets for identical financial instruments


  • Level 2 – other significant observable inputs (including quoted prices for similar financial instruments, interest rates, prepayment speed, credit risk, etc.)
  • Level 3 – significant unobservable inputs (including the Fund’s own assumptions in determining the fair value of financial instruments)

The input levels are not necessarily an indication of the risk or liquidity associated with financial instruments at that level.

For movements between the levels within the fair value hierarchy, the Fund has adopted a policy of recognizing the transfers as of the date of the underlying event which caused the movement.

A summary of inputs used as of November 30, 2015, in valuing the Fund’s assets carried at fair value, is as follows:

                                Level 1   Level 2     Level 3   Total
Investments in Securities              
Equity Investments:a              
Russia $ 6,545,810 $ 7,728,403 $ - $ 14,274,213
All Other Equity Investmentsb   210,589,004   -   - 210,589,004
Short Term investments   8,571,182   -   - 8,571,182
Total Investments in Securities $ 225,705,996 $ 7,728,403 $ - $ 233,434,399
aIncludes common and preferred stocks.              
bFor detailed categories, see the accompanying Statement of Investments.            


A reconciliation of assets in which Level 3 inputs are used in determining fair value is presented when there are significant Level 3 financial instruments at the end of the period. The reconciliation of assets for the three months ended November 30, 2015, is as follows:

    Balance at             Net   Net Unrealized   Balance at
    Beginning of Purchases Transfers Transfers Out Cost Basis   Realized   Appreciation   End of
    Period   (Sales) Into Level 3 of Level 3 Adjustments   Gain (Loss)   (Depreciation)   Period
Investments in Securities:                          
Equity Investments:                          
China $ 4,737,415 $ - $ - $ 4,261,975 $ - $ - $ (475,440 ) $ -



The Fund has evaluated subsequent events through the issuance of the Statement of Investments and determined that no events have occurred that require disclosure.

For additional information on the Fund's 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 changes in the Registrant’s internal controls or in other factors that could materially affect the internal controls over financial reporting 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.






















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





    Laura F. Fergerson

    Chief Executive Officer –

    Finance and Administration

Date January 26, 2016



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.





    Laura F. Fergerson

    Chief Executive Officer –

    Finance and Administration

Date January 26, 2016





By /s/MARK H. OTANI______________

   Mark H. Otani

   Chief Financial Officer and

   Chief Accounting Officer

Date January 26, 2016