0001752724-19-084025.txt : 20190729 0001752724-19-084025.hdr.sgml : 20190729 20190729130526 ACCESSION NUMBER: 0001752724-19-084025 CONFORMED SUBMISSION TYPE: NPORT-EX PUBLIC DOCUMENT COUNT: 1 CONFORMED PERIOD OF REPORT: 20190531 FILED AS OF DATE: 20190729 FILER: COMPANY DATA: COMPANY CONFORMED NAME: TEMPLETON EMERGING MARKETS FUND CENTRAL INDEX KEY: 0000809708 IRS NUMBER: 592767040 STATE OF INCORPORATION: DE FISCAL YEAR END: 0831 FILING VALUES: FORM TYPE: NPORT-EX SEC ACT: 1940 Act SEC FILE NUMBER: 811-04985 FILM NUMBER: 19980284 BUSINESS ADDRESS: STREET 1: 300 S.E. 2ND STREET CITY: FORT LAUDERDALE STATE: FL ZIP: 33301-1923 BUSINESS PHONE: 954-527-7500 MAIL ADDRESS: STREET 1: 300 S.E. 2ND STREET CITY: FORT LAUDERDALE STATE: FL ZIP: 33301-1923 FORMER COMPANY: FORMER CONFORMED NAME: TEMPLETON EMERGING MARKETS FUND INC DATE OF NAME CHANGE: 19920703 ACCESSION NUMBER: 0001752724-19-083585 NPORT-EX 1 Templeton_Emg_Mkts_Fund.htm
Templeton Emerging Markets Fund
Statement of Investments, May 31, 2019 (unaudited)
    Industry Shares   Value
  Common Stocks 92.5%      
  Argentina 0.2%        
 
BBVA Argentina SA, ADR
Banks     50,300       $450,688
  Brazil 2.8%        
a
B2W Cia Digital
Internet & Direct Marketing Retail    104,800       838,721
 
B3 SA - Brasil Bolsa Balcao
Capital Markets    275,600     2,568,801
 
Lojas Americanas SA
Multiline Retail    395,760     1,301,212
 
M. Dias Branco SA
Food Products    109,200     1,076,831
 
Mahle-Metal Leve SA
Auto Components 104,000   601,443
 
Totvs SA
Software 94,300   949,369
          7,336,377
  Cambodia 0.3%        
 
NagaCorp Ltd.
Hotels, Restaurants & Leisure 730,000   835,302
  China 23.2%        
a
Alibaba Group Holding Ltd., ADR
Internet & Direct Marketing Retail 80,756   12,053,640
 
BAIC Motor Corp. Ltd., H
Automobiles 360,000   222,727
a
Baidu Inc., ADR
Interactive Media & Services 15,910   1,750,100
 
Brilliance China Automotive Holdings Ltd.
Automobiles 8,445,100   8,596,783
 
China Construction Bank Corp., H
Banks 5,658,400   4,475,212
 
China Merchants Bank Co. Ltd., A
Banks 289,000   1,431,816
 
China Mobile Ltd.
Wireless Telecommunication Services 360,500   3,147,799
 
China Petroleum & Chemical Corp., H
Oil, Gas & Consumable Fuels 2,153,100   1,433,715
 
China Resources Cement Holdings Ltd.
Construction Materials 2,481,900   2,152,888
 
CNOOC Ltd.
Oil, Gas & Consumable Fuels 1,885,000   3,073,056
 
COSCO Shipping Ports Ltd.
Transportation Infrastructure 338,388   328,926
 
Dairy Farm International Holdings Ltd.
Food & Staples Retailing 89,100   681,615
 
Health & Happiness H&H International Holdings Ltd.
Food Products 290,600   1,586,601
 
MGM China Holdings Ltd.
Hotels, Restaurants & Leisure 426,000   657,542
 
NetEase Inc., ADR
Entertainment 6,422   1,596,573
 
Ping An Bank Co. Ltd., A
Banks 1,853,200   3,268,932
 
Ping An Insurance (Group) Co. of China Ltd., A
Insurance 234,715   2,685,371
 
Sands China Ltd.
Hotels, Restaurants & Leisure 250,000   1,132,131
 
Sunny Optical Technology Group Co. Ltd.
Electronic Equipment, Instruments & Components 206,400   1,760,108
 
Tencent Holdings Ltd.
Interactive Media & Services 178,400   7,418,920
 
Uni-President China Holdings Ltd.
Food Products 1,814,900   1,928,528
 
Weifu High-Technology Co. Ltd., B
Auto Components 294,712   548,130
          61,931,113
  Czech Republic 0.3%        
 
Moneta Money Bank AS
Banks 243,000   793,156
  Hungary 0.9%        
 
Richter Gedeon Nyrt
Pharmaceuticals 137,430   2,470,217
  India 8.5%        
 
Bajaj Holdings & Investment Ltd.
Diversified Financial Services 44,778   2,250,098
 
Coal India Ltd.
Oil, Gas & Consumable Fuels 271,120   987,768
 
Glenmark Pharmaceuticals Ltd.
Pharmaceuticals 246,607   1,932,842
 
ICICI Bank Ltd.
Banks 1,757,254   10,700,611
 
Infosys Ltd.
IT Services 268,602   2,847,961
 
Reliance Industries Ltd.
Oil, Gas & Consumable Fuels 35,410   676,927
Quarterly Statement of Investments  |  See Notes to Statement of Investments.  |  1
Templeton Emerging Markets Fund
Statement of Investments (unaudited)
    Industry Shares   Value
  Common Stocks (continued)      
  India (continued)        
 
Tata Chemicals Ltd.
Chemicals    151,500     $1,374,126
 
Tata Investment Corp. Ltd.
Capital Markets    122,221     1,560,961
a
Tata Motors Ltd., A
Automobiles    327,768       395,460
          22,726,754
  Indonesia 1.5%        
 
Astra International Tbk PT
Automobiles  7,340,500     3,830,944
  Kenya 0.3%        
 
Equity Group Holdings PLC
Banks 1,946,807   746,997
  Mexico 2.4%        
 
Banco Santander Mexico SA Institucion de Banca Multiple Grupo Financiero Santander, ADR
Banks 791,217   5,791,709
 
Nemak SAB de CV
Auto Components 1,413,400   654,055
          6,445,764
  Nigeria 0.0%†        
 
Nigerian Breweries PLC
Beverages 132,031   21,118
  Pakistan 0.6%        
 
MCB Bank Ltd.
Banks 1,343,910   1,610,442
  Peru 1.2%        
 
Compania de Minas Buenaventura SA, ADR
Metals & Mining 111,137   1,685,949
 
Intercorp Financial Services Inc.
Banks 34,920   1,531,591
          3,217,540
  Philippines 0.3%        
 
BDO Unibank Inc.
Banks 260,750   690,132
  Russia 8.9%        
 
Gazprom PJSC, ADR
Oil, Gas & Consumable Fuels 556,944   3,659,122
 
LUKOIL PJSC, ADR
Oil, Gas & Consumable Fuels 85,666   6,901,253
a,b
Mail.Ru Group Ltd., GDR, Reg S
Interactive Media & Services 99,578   2,276,353
 
MMC Norilsk Nickel PJSC, ADR
Metals & Mining 33,900   707,832
 
Sberbank of Russia PJSC, ADR
Banks 437,637   6,323,855
a
Yandex NV, A
Interactive Media & Services 109,621   3,937,586
          23,806,001
  South Africa 7.0%        
 
Massmart Holdings Ltd.
Food & Staples Retailing 477,943   2,209,191
a
MultiChoice Group Ltd.
Media 79,231   662,801
 
Naspers Ltd., N
Internet & Direct Marketing Retail 69,861   15,705,312
          18,577,304
  South Korea 15.0%        
 
Fila Korea Ltd.
Textiles, Apparel & Luxury Goods 40,950   2,687,370
 
Hankook Tire & Technology Co. Ltd.
Auto Components 17,600   518,274
 
Hanon Systems
Auto Components 84,734   826,979
 
HDC Hyundai Development Co-Engineering & Construction
Construction & Engineering 51,154   1,844,205
 
Hite Jinro Co. Ltd.
Beverages 33,820   569,092
 
Interpark Holdings Corp.
Internet & Direct Marketing Retail 110,746   216,636
 
KT Skylife Co. Ltd.
Media 59,360   516,908
 
LG Corp.
Industrial Conglomerates 80,395   4,958,061
  |  2
Templeton Emerging Markets Fund
Statement of Investments (unaudited)
    Industry Shares   Value
  Common Stocks (continued)      
  South Korea (continued)        
 
Naver Corp.
Interactive Media & Services     48,988     $4,595,613
 
POSCO
Metals & Mining     10,978     2,193,642
 
Samsung Electronics Co. Ltd.
Technology Hardware, Storage & Peripherals    512,281    18,317,916
 
SK Hynix Inc.
Semiconductors & Semiconductor Equipment     34,540     1,897,643
 
SK Innovation Co. Ltd.
Oil, Gas & Consumable Fuels      6,530       906,517
          40,048,856
  Taiwan 9.2%        
 
Catcher Technology Co. Ltd.
Technology Hardware, Storage & Peripherals 212,000   1,290,552
 
CTBC Financial Holding Co. Ltd.
Banks 2,387,000   1,585,531
 
FIT Hon Teng Ltd.
Electronic Equipment, Instruments & Components 1,173,700   468,630
 
Hon Hai Precision Industry Co. Ltd.
Electronic Equipment, Instruments & Components 782,112   1,832,532
 
Largan Precision Co. Ltd.
Electronic Equipment, Instruments & Components 6,400   764,997
a
PChome Online Inc.
Internet & Direct Marketing Retail 400,282   1,535,641
 
Taiwan Semiconductor Manufacturing Co. Ltd.
Semiconductors & Semiconductor Equipment 2,291,400   17,109,217
          24,587,100
  Thailand 3.2%        
 
Kasikornbank PCL, fgn.
Banks 583,800   3,471,143
 
Kiatnakin Bank PCL, fgn.
Banks 893,200   1,862,308
 
PTT Exploration and Production PCL, fgn.
Oil, Gas & Consumable Fuels 95,247   379,055
 
Siam Commercial Bank PCL, fgn.
Banks 283,000   1,162,153
 
Thai Beverage PCL, fgn.
Beverages 2,347,000   1,383,754
 
Univanich Palm Oil PCL, fgn.
Food Products 1,662,600   287,337
          8,545,750
  United Kingdom 3.4%        
 
Unilever PLC
Personal Products 148,923   9,100,062
  United States 3.3%        
 
Cognizant Technology Solutions Corp., A
IT Services 104,686   6,483,204
a
IMAX Corp.
Entertainment 108,700   2,365,312
          8,848,516
 
Total Common Stocks (Cost $183,835,452)
      246,620,133
  Preferred Stocks 5.7%        
  Brazil 5.7%        
c
Banco Bradesco SA, 3.21%, ADR, pfd.
Banks 718,640   6,726,471
c
Itau Unibanco Holding SA, 8.037%, ADR, pfd.
Banks 695,797   6,192,593
c
Petroleo Brasileiro SA, 0.655%, ADR, pfd.
Oil, Gas & Consumable Fuels 167,100   2,168,958
 
Total Preferred Stocks (Cost $8,775,286)
      15,088,022
 
Total Investments before Short Term Investments (Cost $192,610,738)
      261,708,155
  |  3
Templeton Emerging Markets Fund
Statement of Investments (unaudited)
      Shares   Value
  Short Term Investments (Cost $14,505,308) 5.4%      
  Money Market Funds 5.4%        
  United States 5.4%        
d,e
Institutional Fiduciary Trust Money Market Portfolio, 2.08%
  14,505,308    $14,505,308
 
Total Investments (Cost $207,116,046) 103.6%
      276,213,463
 
Credit Facility (3.8)%
      (10,000,000)
 
Other Assets, less Liabilities 0.2%
      363,927
 
Net Assets 100.0%
      $266,577,390
 
See Abbreviations on page 7.
†Rounds to less than 0.1% of net assets.
aNon-income producing.
bSecurity 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. This security has been deemed liquid under guidelines approved by the Fund’s Board of Trustees. At May 31, 2019, the value of this security was $2,276,353, representing 0.9% of net assets.
cVariable rate security. The rate shown represents the yield at period end.
dSee  Note 4 regarding investments in affiliated management investment companies.
eThe rate shown is the annualized seven-day effective yield at period end.
  |  4
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 (1940 Act) as a closed-end management investment company and applies the specialized accounting and reporting guidance in U.S. Generally Accepted Accounting Principles (U.S. GAAP). 
2.  FINANCIAL INSTRUMENT VALUATION
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 each business day as of 4 p.m. Eastern time or the regularly scheduled close of the New York Stock Exchange (NYSE), whichever is earlier. 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 Committee (VC). The Fund may 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. 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 Fund 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.
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 Fund’s business day. Occasionally, events occur between the time at which trading in a foreign security is completed and 4 p.m. Eastern time 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 4 p.m. Eastern time. In order to minimize the potential for these differences, the VC 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.
  |  5
Templeton Emerging Markets Fund
Notes to Statement of Investments (unaudited)
2.  FINANCIAL INSTRUMENT VALUATION  (continued)
When the last day of the reporting period is a non-business day, certain foreign markets may be open on those days that the Fund’s NAV is not calculated, 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.  
3.  CONCENTRATION OF RISK
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. Current political and financial uncertainty surrounding the European Union may increase market volatility and the economic risk of investing in securities in Europe. In addition, certain foreign securities may not be as liquid as U.S. securities.
The United States and other nations have imposed and could impose additional sanctions on certain issuers in Russia due to regional conflicts. These sanctions could result in the devaluation of Russia’s currency, a downgrade in Russian issuers’ credit ratings, or a decline in the value and liquidity of Russian stocks or other securities. Such sanctions could also adversely affect Russia’s economy. The Fund may be prohibited from investing in securities issued by companies subject to such sanctions. In addition, if the Fund holds the securities of an issuer that is subject to such sanctions, an immediate freeze of that issuer’s securities could result, impairing the ability of the Fund to buy, sell, receive or deliver those securities. There is also the risk that countermeasures could be taken by Russia’s government, which could involve the seizure of the Fund’s assets. These risks could affect the value of the Fund’s portfolio. While the Fund holds securities of certain issuers impacted by the sanctions, existing investments do not presently violate the applicable terms and conditions of the sanctions. The sanctions currently do not affect the Fund’s ability to sell these securities. At May 31, 2019, the Fund had 8.9% of its net assets invested in Russia. 
4.  INVESTMENTS IN AFFILIATED MANAGEMENT INVESTMENT COMPANIES
The Fund invests in one or more affiliated management investment companies for purposes other than exercising a controlling influence over the management or policies. During the period ended May 31, 2019, the Fund held investments in affiliated management investment companies as follows:
  Number of
Shares Held
at Beginning
of Period 		Gross
Additions 		Gross
Reductions 		Number of
Shares
Held at End
of Period 		Value
at End
of Period 		Dividend
Income 		Realized
Gain (Loss) 		Net Change in
Unrealized
Appreciation
(Depreciation)
Non-Controlled Affiliates
Institutional Fiduciary Trust Money Market Portfolio, 2.08%
8,367,054 51,727,632 (45,589,378) 14,505,308 $14,505,308 $211,097 $  — $  —
5.  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)
  |  6
Templeton Emerging Markets Fund
Notes to Statement of Investments (unaudited)
The input levels are not necessarily an indication of the risk or liquidity associated with financial instruments at that level.
At May 31, 2019, all of the Fund’s investments in financial instruments carried at fair value were valued using Level 1 inputs. For detailed categories, see the accompanying Statement of Investments. 
6.  SUBSEQUENT EVENTS
The Fund has evaluated subsequent events through the issuance of the Statement of Investments and determined that no events have occurred that require disclosure. 
ABBREVIATIONS
Selected Portfolio
ADR American Depositary Receipt
GDR Global Depositary Receipt
 
For additional information on the Fund’s significant accounting policies, please refer to the Fund’s most recent semiannual or annual shareholder report.
  |  7