Edgar Filing: TEMPLETON EMERGING MARKETS FUND

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
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Date of fiscal year end: 8/31
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Date of reporting period: 05/31/07
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ITEM 1. SCHEDULE OF INVESTMENTS.

Templeton Emerging Markets Fund

QUARTERLY STATEMENT OF INVESTMENTS
MAY 31, 2007

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CONTENTS

Statement of Investments ................................................... 3

Notes to Statement of Investments .......................................... 7

[LOGO](R)
FRANKLIN TEMPLETON
INVESTMENTS

Franklin o TEMPLETON o Mutual Series

Quarterly Statement of Investments | 1

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Templeton Emerging Markets Fund

STATEMENT OF INVESTMENTS, MAY 31, 2007 (UNAUDITED)

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INDUSTRY SHARES/RIGHTS VALUE
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LONG TERM INVESTMENTS 98.5%
COMMON STOCKS AND RIGHTS 84.9%
AUSTRIA 1.6%
OMV AG ................................................ Oil, Gas & Consumable Fuels 89,020 $ 5,909,229
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BRAZIL 2.6%
Centrais Eletricas Brasileiras SA ..................... Electric Utilities 158,994,000 4,250,048
Souza Cruz SA ......................................... Tobacco 229,973 5,698,446
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9,948,494
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CHINA 13.3%
Aluminum Corp. of China Ltd., H ....................... Metals & Mining 9,792,000 12,966,879
China Petroleum and Chemical Corp., H ................. Oil, Gas & Consumable Fuels 7,874,000 8,793,371
CNOOC Ltd. ............................................ Oil, Gas & Consumable Fuels 6,512,000 6,163,144
Denway Motors Ltd. .................................... Automobiles 16,432,730 7,197,461
PetroChina Co. Ltd., H ................................ Oil, Gas & Consumable Fuels 9,832,000 12,868,748
a PetroChina Co. Ltd., H, 144A .......................... Oil, Gas & Consumable Fuels 1,856,000 2,429,251
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50,418,854
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HONG KONG 1.5%
Dairy Farm International Holdings Ltd. ................ Food & Staples Retailing 1,382,700 5,530,800
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HUNGARY 5.0%
Magyar Telekom PLC .................................... Diversified Telecommunication Services 616,974 3,093,167
MOL Hungarian Oil and Gas Nyrt. ....................... Oil, Gas & Consumable Fuels 56,975 7,354,035
Richter Gedeon Nyrt. .................................. Pharmaceuticals 41,694 8,511,497
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18,958,699
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INDIA 5.1%
Gail India Ltd. ....................................... Gas Utilities 295,286 2,214,919
Hindalco Industries Inc. .............................. Metals & Mining 791,800 2,762,230
National Aluminium Co. Ltd. ........................... Metals & Mining 613,230 3,812,278
Oil & Natural Gas Corp. Ltd. .......................... Oil, Gas & Consumable Fuels 250,395 5,672,106
a Oil & Natural Gas Corp. Ltd., 144A .................... Oil, Gas & Consumable Fuels 45,645 1,033,979
Sesa Goa Ltd. ......................................... Metals & Mining 88,814 3,693,563
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19,189,075
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INDONESIA 0.7%
PT Astra International Tbk ............................ Automobiles 1,409,000 2,617,832
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MALAYSIA 2.3%
Maxis Communications Bhd. ............................. Wireless Telecommunication Services 1,360,500 6,124,952
Tanjong PLC ........................................... Independent Power Producers & Energy
Traders 465,800 2,480,795
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8,605,747
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MEXICO 3.2%
Kimberly Clark de Mexico SAB de CV, A ................. Household Products 1,572,800 6,678,370
Telefonos de Mexico SAB de CV (TELMEX), L, ADR ........ Diversified Telecommunication Services 133,674 5,405,776
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12,084,146
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Quarterly Statement of Investments | 3

Templeton Emerging Markets Fund

STATEMENT OF INVESTMENTS, MAY 31, 2007 (UNAUDITED) (CONTINUED)

LONG TERM INVESTMENTS (CONTINUED)
COMMON STOCKS AND RIGHTS (CONTINUED)
PAKISTAN 2.4%
Faysal Bank Ltd. ...................................... Commercial Banks 3,170,000 $ 3,548,313
MCB Bank Ltd. ......................................... Commercial Banks 589,450 3,308,197
Pakistan Telecommunications Corp., A .................. Diversified Telecommunication Services 2,538,000 2,251,822
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9,108,332
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POLAND 3.2%
b Grupa Lotos SA ........................................ Oil, Gas & Consumable Fuels 306,000 5,241,855
b Polski Koncern Naftowy Orlen SA ....................... Oil, Gas & Consumable Fuels 404,750 7,003,515
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12,245,370
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RUSSIA 8.5%
Gazprom ............................................... Oil, Gas & Consumable Fuels 2 18
Gazprom, ADR .......................................... Oil, Gas & Consumable Fuels 231,422 8,470,045
LUKOIL, ADR ........................................... Oil, Gas & Consumable Fuels 101,006 7,600,702
LUKOIL, ADR (London Exchange) ......................... Oil, Gas & Consumable Fuels 36,510 2,741,901
Mining and Metallurgical Co. Norilsk Nickel ........... Metals & Mining 44,679 8,332,633
Mobile Telesystems, ADR ............................... Wireless Telecommunication Services 77,300 4,188,114
OAO TMK, GDR .......................................... Energy Equipment & Services 28,000 1,018,640
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32,352,053
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SOUTH AFRICA 5.0%
Imperial Holdings Ltd. ................................ Air Freight & Logistics 84,630 1,800,183
JD Group Ltd. ......................................... Specialty Retail 163,080 1,874,127
MTN Group Ltd. ........................................ Wireless Telecommunication Services 241,400 3,314,789
Old Mutual PLC ........................................ Insurance 554,260 1,900,757
Remgro Ltd. ........................................... Diversified Financial Services 389,570 9,971,303
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18,861,159
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SOUTH KOREA 7.1%
Hyundai Development Co. ............................... Construction & Engineering 104,630 7,296,751
Kangwon Land Inc. ..................................... Hotels, Restaurants & Leisure 330,008 7,203,085
SK Corp. .............................................. Oil, Gas & Consumable Fuels 111,070 12,570,574
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27,070,410
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SWEDEN 1.3%
Oriflame Cosmetics SA, SDR ............................ Personal Products 91,120 4,767,647
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TAIWAN 5.0%
MediaTek Inc. ......................................... Semiconductors & Semiconductor Equipment 200,090 3,167,764
Siliconware Precision Industries Co. .................. Semiconductors & Semiconductor Equipment 1,255,999 2,623,397
Taiwan Mobile Co. Ltd. ................................ Wireless Telecommunication Services 5,208,372 5,344,750
Taiwan Semiconductor Manufacturing Co. Ltd. ........... Semiconductors & Semiconductor Equipment 3,858,717 7,966,233
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19,102,144
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4 | Quarterly Statement of Investments

Templeton Emerging Markets Fund

STATEMENT OF INVESTMENTS, MAY 31, 2007 (UNAUDITED) (CONTINUED)

LONG TERM INVESTMENTS (CONTINUED)
COMMON STOCKS AND RIGHTS (CONTINUED)
THAILAND 6.8%
Amata Corp. Public Co. Ltd., fgn. ..................... 4,557,300 $ 1,828,973
Bangkok Bank Public Co. Ltd., fgn. .................... Commercial Banks 618,000 2,069,814
Kasikornbank Public Co. Ltd., fgn. .................... Commercial Banks 2,251,200 4,582,347
Kiatnakin Bank Public Co. Ltd., fgn. .................. Consumer Finance 2,134,600 1,633,229
Land and Houses Public Co. Ltd., fgn. ................. Household Durables 6,872,332 1,517,925
PTT Exploration and Production Public Co. Ltd., fgn. .. Oil, Gas & Consumable Fuels 1,226,600 3,683,164
PTT Public Co. Ltd., fgn. ............................. Oil, Gas & Consumable Fuels 578,000 4,205,457
Siam Cement Public Co. Ltd., fgn. ..................... Construction Materials 608,620 4,393,100
Siam Commercial Bank Public Co. Ltd., fgn. ............ Commercial Banks 918,100 1,829,043
b True Corp. Public Co. Ltd., fgn., rts., 3/28/08 ....... Diversified Telecommunication Services 246,818 --
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25,743,052
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TURKEY 10.3%
Akbank TAS ............................................ Commercial Banks 2,178,585 15,295,568
Arcelik AS, Br. ....................................... Household Durables 540,651 4,678,119
Tupras-Turkiye Petrol Rafineleri AS ................... Oil, Gas & Consumable Fuels 427,186 10,132,495
Turkcell Iletisim Hizmetleri AS ....................... Wireless Telecommunication Services 957,217 6,429,883
Turkiye Vakiflar Bankasi T.A.O., D .................... Commercial Banks 864,159 2,361,269
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38,897,334
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TOTAL COMMON STOCKS AND RIGHTS
(COST $204,806,118) ................................ 321,410,377
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PREFERRED STOCKS 13.6%
BRAZIL 13.6%
Banco Bradesco SA, ADR, pfd. .......................... Commercial Banks 416,148 10,565,998
Companhia Vale do Rio Doce, ADR, pfd., A .............. Metals & Mining 483,150 18,543,297
Petroleo Brasileiro SA, ADR, pfd. ..................... Oil, Gas & Consumable Fuels 167,580 16,067,570
Unibanco - Uniao de Bancos Brasileiros SA, GDR, pfd. .. Commercial Banks 56,700 6,367,977
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TOTAL PREFERRED STOCKS
(COST $21,348,294) ................................. 51,544,842
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TOTAL LONG TERM INVESTMENTS
(COST $226,154,412) ................................ 372,955,219
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SHORT TERM INVESTMENTS (COST $6,468,891) 1.7%
MONEY MARKET FUND 1.7%
UNITED STATES 1.7%
c Franklin Institutional Fiduciary Trust Money
Market Portfolio, 4.83% ............................ 6,468,891 6,468,891
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Quarterly Statement of Investments | 5

Templeton Emerging Markets Fund

STATEMENT OF INVESTMENTS, MAY 31, 2007 (UNAUDITED) (CONTINUED)

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VALUE
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TOTAL INVESTMENTS
(COST $232,623,303) 100.2% ......................... $379,424,110
OTHER ASSETS, LESS LIABILITIES (0.2)% ................. (778,717)
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NET ASSETS 100.0% ..................................... $378,645,393
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SELECTED PORTFOLIO ABBREVIATIONS

ADR - American Depository Receipt
GDR - Global Depository Receipt
SDR - Swedish Depository Receipt

a Security was purchased pursuant to Rule 144A under the Securities Act of 1933
and may be sold in transactions exempt from registration only to qualified
institutional buyers or in a public offering registered under the Securities Act
of 1933. These securities have been deemed liquid under guidelines approved by
the Fund's Board of Trustees. At May 31, 2007, the aggregate value of these
securities was $3,463,230, representing 0.91% of net assets.

b Non-income producing for the twelve months ended May 31, 2007.

c 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.

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

Templeton Emerging Markets Fund

NOTES TO STATEMENT OF INVESTMENTS (UNAUDITED)

1. ORGANIZATION

Templeton Emerging Markets Fund (the 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.

Quarterly Statement of Investments | 7

Templeton Emerging Markets Fund

NOTES TO STATEMENT OF INVESTMENTS (UNAUDITED) (CONTINUED)

3. INCOME TAXES

At May 31, 2007, the cost of investments and net unrealized appreciation
(depreciation) for income tax purposes were as follows:

Cost of investments ..................................... $ 239,053,821
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Unrealized appreciation ................................. $ 142,281,057
Unrealized depreciation ................................. (1,910,768)
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Net unrealized appreciation (depreciation) .............. $ 140,370,289
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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.

8 | Quarterly Statement of Investments

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
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Jimmy D. Gambill
Chief Executive Officer -
Finance and Administration
Date July 26, 2007

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 July 26, 2007

By /s/GALEN G. VETTER
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Galen G. Vetter
Chief Financial Officer
Date July 26, 2007