FORM N-Q
QUARTERLY SCHEDULE OF PORTFOLIO HOLDINGS OF
REGISTERED MANAGEMENT INVESTMENT COMPANIES
Investment Company Act file number 811-04985
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TEMPLETON EMERGING MARKETS FUND
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(Exact name of registrant as specified in charter)
500 EAST BROWARD BLVD., SUITE 2100, FORT LAUDERDALE, FL 33394-3091
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(Address of principal executive offices) (Zip code)
MURRAY L. SIMPSON, ONE FRANKLIN PARKWAY, SAN MATEO, CA 94403-1906
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(Name and address of agent for service)
Registrant's telephone number, including area code: (954) 527-7500
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Date of fiscal year end: 08/31
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Date of reporting period: 11/30/04
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ITEM 1. SCHEDULE OF INVESTMENTS.
TEMPLETON EMERGING MARKETS FUND
QUARTERLY STATEMENTS OF INVESTMENTS
NOVEMBER 30, 2004
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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)
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INDUSTRY SHARES VALUE
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COMMON STOCKS 93.2%
ARGENTINA .3%
Tenaris SA, ADR .................................. Energy Equipment & Services 17,395 $ 877,752
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AUSTRIA 2.9%
Bank Austria Creditanstalt ....................... Commercial Banks 56,161 4,776,991
OMV AG ........................................... Oil & Gas 11,398 3,006,211
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7,783,202
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BELGIUM 1.9%
Inbev ............................................ Beverages 144,250 5,295,161
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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
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5,612,432
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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
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29,452,643
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CROATIA .6%
Pliva D D, GDR, Reg S ............................ Pharmaceuticals 124,000 1,630,600
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CZECH REPUBLIC .4%
Cesky Telecom AS ................................. Diversified Telecommunication Services 70,850 1,058,301
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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
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3,221,174
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2 | Quarterly Statement of Investments
TEMPLETON EMERGING MARKETS FUND
STATEMENT OF INVESTMENTS, NOVEMBER 30, 2004 (UNAUDITED) (CONTINUED)
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INDUSTRY SHARES VALUE
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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
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8,834,821
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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
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9,481,943
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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
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8,829,080
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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
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302,800
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ISRAEL .2%
(a)Check Point Software Technologies Ltd. .......... Software 26,200 621,988
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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
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4,520,780
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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
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9,204,002
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PHILIPPINES .9%
San Miguel Corp., B .............................. Beverages 1,771,090 2,332,870
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Quarterly Statement of Investments | 3
TEMPLETON EMERGING MARKETS FUND
STATEMENT OF INVESTMENTS, NOVEMBER 30, 2004 (UNAUDITED) (CONTINUED)
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INDUSTRY SHARES VALUE
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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
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7,926,570
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RUSSIA .9%
(b)Lukoil Holdings, ADR ............................. Oil & Gas 20,499 2,558,275
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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
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15,736,969
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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
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30,500,271
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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
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47,044,251
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4 | Quarterly Statement of Investments
TEMPLETON EMERGING MARKETS FUND
STATEMENT OF INVESTMENTS, NOVEMBER 30, 2004 (UNAUDITED) (CONTINUED)
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INDUSTRY SHARES VALUE
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COMMON STOCKS (CONT.)
SWEDEN .3%
(a)Oriflame Cosmetics, IDR ........................ Personal Products 40,180 $ 852,158
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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
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35,027,510
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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 --
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2,968,014
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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
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8,088,402
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UNITED KINGDOM 1.6%
HSBC Holdings PLC .............................. Commercial Banks 208,883 3,572,854
Provident Financial PLC ........................ Consumer Finance 78,116 917,019
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4,489,873
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TOTAL COMMON STOCKS (COST $182,277,849) ........ $254,251,842
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Quarterly Statement of Investments | 5
TEMPLETON EMERGING MARKETS FUND
STATEMENT OF INVESTMENTS, NOVEMBER 30, 2004 (UNAUDITED) (CONTINUED)
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INDUSTRY SHARES VALUE
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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
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TOTAL PREFERRED STOCKS (COST $11,560,598) .................... 14,958,889
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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
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TOTAL INVESTMENTS (COST $197,473,059) 100.0% ................. 272,845,343
OTHER ASSETS, LESS LIABILITIES ............................... (18,244)
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NET ASSETS 100.0% ............................................ $ 272,827,099
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(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
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Unrealized appreciation ................................ $ 73,678,946
Unrealized depreciation ................................ (1,663,388)
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Net unrealized appreciation (depreciation) ............. $ 72,015,558
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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
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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
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Jimmy D. Gambill
Chief Executive Officer -
Finance and Administration
Date January 20, 2005
By /s/GALEN G. VETTER
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Galen G. Vetter
Chief Financial Officer
Date January 20, 2005