<PAGE>
Templeton Emerging
Markets Fund, Inc.
Your Fund's Objective:
The Templeton Emerging Markets Fund, Inc. seeks long-term capital appreciation
by investing primarily in emerging country equity securities.
January 17, 1996
Dear Shareholder:
This update for the quarter ended November 30, 1995, includes your Fund's long-
term performance, a listing of its investments, and a brief discussion by Dr.
Mark Mobius on an emerging markets topic. Please keep in mind that this summary
is one of four reports you will receive during the Fund's fiscal year.
Next quarter, you will receive the semi-annual report covering the six months
ending February 29, 1996, which is more comprehensive. It will include a
discussion of the financial markets, and a summary of the Fund's performance and
investment direction during the fiscal period. The manager's outlook and the
Fund's financial statements and investment portfolio will also be included.
If you have any questions regarding this report, you may call the Franklin
Templeton Fund Information Department, toll free, at 1-800/292-9293.
Templeton Emerging Markets Fund
Cumulative Total Returns*
Periods ended November 30, 1995
<TABLE>
<CAPTION>
Since
Inception
1-Year 5-Year (2/26/87)
<S> <C> <C> <C>
Based on change
in net asset value -8.89% 229.65% 437.60%
Based on change
in market price -2.25% 238.84% 438.62%
</TABLE>
*Cumulative total return represents the change in value of an investment over
the specified periods.
These calculations assume reinvestment of all distributions and capital gains at
net asset value or at market price, in accordance with the reinvestment plan, on
the reinvestment date. Past performance is not predictive of future results.
Investing in emerging markets involves special considerations, which may include
risks related to market and currency volatility, adverse social and political
developments, and the relatively small size and lesser liquidity of these
markets. While short-term volatility can be disconcerting, declines of as much
as 40% to 50% are not unusual in emerging markets. For example, the Hong Kong
market has increased 695% in the last 15 years, but has suffered six declines of
more than 20% during that time.
(Source: Bloomberg. Based on quarterly percentage change over 15 years ended
September 30, 1995.)
1
<PAGE>
The following letter was written by Dr. Mark Mobius after a recent trip to
Athens.
Greece is an important emerging market, and, due to the fundamental economic
changes it is experiencing, along with its growing integration in the European
Community, I believe it holds great promise as an area of investment for the
Fund's shareholders.
On a recent visit, I found Athens warm and welcoming after a two-hour flight
from cold, rainy Budapest. Upon arrival, I was told that agreement had been
reached concerning the construction of a new Athens airport, one of many new
infrastructure projects expected to boost the economy. Certainly, the old
airport has always been severely overcrowded at the peak of the tourist season,
but tourism fell significantly in 1995, and some say it was due to the congested
airport. Others claim that European tour operators conspired to boycott Greece
because of rising prices. However, inflation no longer presents the problem it
did in the past. In two years, it has fallen more than 14% to below 9%, and the
government expects it to drop to 5%. My economic consultants in Greece told me:
"People are getting so used to declining inflation, soon it will no longer be
news." Of course, even the government's goal of 5% inflation would be double the
average for the European Union (EU). As a member of the EU, however, Greece will
most likely move closer to many European norms, including the rate of inflation.
While I was in Athens, one topic of great interest to many people was Prime
Minister Papandreou's health and the possibility of another cabinet reshuffle.
Some Greeks told me that the country would be in deep trouble if something
happened to Papandreou, because there would be a dangerous political-power
vacuum, with no clear leader in sight. This, they said, could lead to extended
political upheavals. Although the ruling Pan-Hellenic Socialist Movement
(PASOK) party was in some disarray following the resignation of the Trade and
Industry Minister just before I arrived, my assessment was that the Greeks were
being too sensitive to local political events which would have little impact on
the direction of the Greek economy. In fact, as their economy becomes more
integrated with the EU, it will be more difficult for local politicians to
2
<PAGE>
[MAP OF GREECE APPEARS HERE]
have much impact on economic issues, and their power base will, therefore,
shrink. As the Greeks adhere increasingly to EU rules and regulations, a number
of decisions which previously would have been based on populist pressures will
be made in Brussels.
Over the course of five days in Athens, I visited 14 companies, including
Intracom, a telecommunications equipment manufacturer. Managers there told me
Greece has a 52% penetration rate for telephones, which is high for an emerging
market. However, you have to wait a year for a phone connection, telephone lines
are of poor quality, and there is plenty of room for expansion of overall
capacity and upgrading of existing technology. To me, this indicates the
potential for growth in the Greek telecommunication industry.
We also visited Strintzis Lines, a shipping company, where we were told that the
war in Bosnia had appreciably increased the demand for ferries to carry trucks
and goods to Italy. Now, trucks and cars go by ferry to Italy and then north to
the rest of Europe. Although this new trade route has attracted a great deal of
competition, it is dominated by Greek firms.
As we left for the Athens airport, the driver told us we were lucky to be
leaving because there was going to be a demonstration near the hotel later that
day. During our visit, negotiations had been held in New York to end the long,
bitter dispute between Greece and the Former Yugoslav Republic of Macedonia
(which the Greeks insist on calling Skopje). According to a United Nations plan,
Greece would drop trade sanctions against its northern neighbor in return for
guarantees that Skopje would
3
<PAGE>
change its flag and renounce any territorial ambitions. Apparently, the Greek
and Macedonian foreign ministers had agreed to the plan, and the Greeks had
decided to stop the embargo against Macedonia. However, die-hard opponents of
the plan were arranging to hold a protest march at the peak of rush-hour
traffic.
Of course, there is more political trouble in the region than just the Skopje
dispute. But the day-to-day political situation in a country need not have a
major long-term impact on investors, and market declines caused by political
tensions are often a chance for us to increase our purchases of bargain
companies. I believe that Greece's increasing alignment with the large European
market will help drive long-term economic growth, and that investing there now,
offers the Fund's shareholders a potential benefit in the future.
Sincerely,
/s/ J. Mark Mobius
J. Mark Mobius, Ph.D.
President
Templeton Emerging Markets Fund
4
<PAGE>
Templeton Emerging Markets Fund, Inc.
Investment Portfolio, November 30, 1995 (unaudited)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SHARES/PRINCIPAL IN
INDUSTRY LOCAL CURRENCY* VALUE
- ------------------------------------------------------------------------------------
LONG TERM SECURITIES: 93.6%
- ------------------------------------------------------------------------------------
<S> <C> <C> <C>
Argentina 2.8%
Astra Cia Argentina de
Petroleo SA Energy Sources 84,000 $ 142,864
Banco de Galicia y
Buenos Aires SA, B Banking 335,430 1,661,128
Central Costanera SA, B Utilities Electrical & Gas 36,280 113,245
Central Termoelectricia
de Buenos Aires Utilities Electrical & Gas 4,988 5,739
Ciadea SA Automobiles 77,136 331,836
Comercial de Plata SA Multi-Industry 912,370 2,218,057
Compania Naviera Perez
Companc SA, B Energy Sources 130,237 631,934
Industrias
Petroquimicas Koppers
(IPAKO) Chemicals 176,191 708,607
Molinos Rio de Plata
SA, B Food & Household Products 22,608 175,291
Transportadora de Gas
del Sur SA, B Energy Sources 42,354 91,527
YPF Sociedad Anonima,
ADR Energy Sources 31,000 604,500
------------
6,684,728
- ------------------------------------------------------------------------------------
Brazil 12.1%
Banco Bradesco SA Banking 138,111,477 1,027,919
Banco Bradesco SA, pfd. Banking 134,528,816 1,162,792
Banco do Brasil SA Banking 693,000 8,608
Banco do Brazil SA,
pfd. Banking 21,000,000 272,812
Banespa-Banco do Estado
de Sao Paulo SA, pfd. Banking 172,796,000 992,721
Cemig-Cia Energetica de
Minas Gerais, pfd. Utilities Electrical & Gas 122,441,093 2,712,323
Cia Mesbla SA, pfd. Merchandising 6,825,690 111,283
Copene-Petroquimica do
Nordeste SA, A, pfd. Chemicals 5,861,800 2,184,409
Duratex SA, pfd. Forest Products & Paper 8,887,800 380,886
Eletrobras-Centrais
Eletricas Brasileiras
SA, B, pfd. Utilities Electrical & Gas 26,820,977 7,551,685
Itausa-Investimentos
Itau SA, pfd. Multi-Industry 7,947,346 4,031,054
Mannesmann SA Machinery & Engineering 31,968 5,460
Mannesmann SA, pfd. Machinery & Engineering 2,085,844 388,625
Petrobras-Petroleo
Brasileiro SA, pfd. Energy Sources 51,584,966 4,378,621
Telebras-
Telecomunicacoes
Brasileiras SA Telecommunications 83,151,950 3,357,753
Telerj-Telecomunicacoes
do Rio de Janeiro SA,
pfd. Telecommunications 679,399 40,790
Unibanco-Uniao de
Bancos Brasileiros SA,
pfd. Banking 9,150,468 279,425
------------
28,887,166
- ------------------------------------------------------------------------------------
Chile 2.9%
Antofagasta Holdings
PLC Metals & Mining 1,585,000 6,865,147
- ------------------------------------------------------------------------------------
</TABLE>
5
<PAGE>
Templeton Emerging Markets Fund, Inc.
Investment Portfolio, November 30, 1995 (unaudited) (cont.)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SHARES/PRINCIPAL IN
INDUSTRY LOCAL CURRENCY* VALUE
- -----------------------------------------------------------------------------------------
LONG TERM SECURITIES (CONT.)
- -----------------------------------------------------------------------------------------
<S> <C> <C> <C>
China 0.8%
China Southern Glass
Co. Ltd., B Multi-Industry 325,000 $ 125,002
Chiwan Wharf Holdings
Ltd., B Transportation 846,000 339,061
Foshan Electrical and
Lighting Co. Ltd., B Appliances & Household Durables 400,000 279,254
Shandong Huaneng Power Utilities Electrical & Gas 24,000 171,000
Shanghai Chlor-Alkali
Chemical Co. Ltd., B Chemicals 1,088,000 280,704
Shanghai Erfangji
Textile Machinery Co.
Ltd., B Machinery & Engineering 303,600 51,005
Shanghai Industrial
Sewing Machine Corp. Machinery & Engineering 190,000 29,260
Shanghai Jin Jiang
Tower Co. Ltd., B Leisure & Tourism 573,000 171,900
Shanghai Jinqiao Export
Processing Zone
Development, B Real Estate 108,000 45,360
Shanghai Lian Hua Fibre
Corp., B Textiles & Apparel 73,560 12,358
Shanghai Steel Tube Co.
Ltd., B Machinery & Engineering 499,400 71,914
Shanghai Tyre & Rubber
Co. Ltd., B Industrial Components 173,000 39,790
Shanghai Vacuum
Electron Devices Co.
Ltd., B Appliances & Household Durables 525,600 123,516
Shanghai Yaohua
Pilkington Glass, B Building Materials & Components 97,000 85,360
Shenzhen Gintian
Industrial Co. Ltd., B Multi-Industry 64,800 26,641
Shenzhen Properties &
Resources
Develop.(Group) Ltd.,
B Real Estate 462,000 96,164
Zhuhai Sez Lizhu
Pharmaceutical, B Chemicals 250,000 87,267
------------
2,035,556
- -----------------------------------------------------------------------------------------
Czech Republic 0.1%
CEZ, GDR Utilities Electrical & Gas 1,000 35,750
CEZ, GDS, 144a Utilities Electrical & Gas 4,000 143,000
------------
178,750
- -----------------------------------------------------------------------------------------
Greece 8.2%
Alpha Credit Bank Banking 97,620 5,608,577
Delta Dairy SA, pfd. Food & Household Products 5,676 97,772
Elais Oleaginous Co. Food & Household Products 28,290 885,474
Ergo Bank SA Banking 134,800 5,227,309
Fourlis Brothers Corp.
SA Appliances & Household Durables 134,030 1,379,605
Hellas Can--Container
Manufacturers Food & Household Products 12,000 237,963
Hellenic Bottling Co.
SA Food & Household Products 66,572 1,943,851
Intracom SA Electrical & Electronics 6,000 129,065
National Bank of Greece
SA Banking 11,940 561,835
Titan Cement Co., reg. Building Materials & Components 91,996 3,439,897
------------
19,511,348
- -----------------------------------------------------------------------------------------
</TABLE>
6
<PAGE>
Templeton Emerging Markets Fund, Inc.
Investment Portfolio, November 30, 1995 (unaudited) (cont.)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SHARES/PRINCIPAL IN
INDUSTRY LOCAL CURRENCY* VALUE
- -----------------------------------------------------------------------------------------
LONG TERM SECURITIES (CONT.)
- -----------------------------------------------------------------------------------------
<S> <C> <C> <C>
Hong Kong 15.4%
Cheung Kong Holdings
Ltd. Multi-Industry 1,838,000 $ 10,455,468
Cross Harbour Tunnel
Co. Ltd. Transportation 12,000 23,271
Dairy Farm Int'l
Holdings Ltd.,
6.50%, conv., pfd. Food & Household Products 29,000 21,678
Dairy Farm
International Holdings
Ltd. Food & Household Products 260,241 213,398
Goldlion Holdings Ltd. Textiles & Apparel 101,000 64,962
Hang Lung Development
Co. Ltd. Real Estate 3,179,000 5,034,680
Hang Lung Development
Co. Ltd., wts. Real Estate 317,900 52,196
Hongkong Electric
Holdings Ltd. Utilities Electrical & Gas 200,000 670,985
Hopewell Holdings Ltd. Construction & Housing 2,436,062 1,377,881
HSBC Holdings PLC Banking 332,443 4,899,676
Jardine International
Motor Holdings Ltd. Automobiles 536,000 599,413
Jardine Matheson
Holdings Ltd.
(Singapore) Multi-Industry 117,672 711,916
Jardine Strategic
Holdings Ltd.
(Singapore) Multi-Industry 242,500 637,775
Jardine Strategic
Holdings Ltd., wts. Multi-Industry 12,500 3,313
K Wah International
Holdings Ltd. Building Materials & Components 2,218,395 338,428
K Wah International
Holdings Ltd., wts. Building Materials & Components 214,379 7,622
Lai Sun Development Co.
Ltd. Real Estate 100,000 12,541
Lai Sun Garment
International Ltd. Multi-Industry 97,000 100,952
New World Development
Co. Ltd. Real Estate 1,084,480 4,528,656
Stelux International
Holdings Ltd. Multi-Industry 585,133 149,784
Sun Hung Kai Properties
Ltd. Real Estate 582,000 4,683,900
Swire Pacific Ltd., B Multi-Industry 475,000 583,395
Tian An China
Investments Co. Ltd. Real Estate 6,201,000 737,556
Vitasoy International
Holdings Ltd. Food & Household Products 272,000 116,925
Wai Kee Holdings Ltd. Construction & Housing 264,000 34,814
Wheelock & Co. Ltd. Multi-Industry 342,000 568,165
Yaohan Hongkong Corp.
Ltd. Merchandising 3,244,000 171,953
------------
36,801,303
- -----------------------------------------------------------------------------------------
Hungary 0.5%
Chinoin Pharmaceutical
& Chemical
Works Co. Ltd. Health & Personal Care 2,000 547,480
Fotex First Hungarian-
American Photo-Service Multi-Industry 893,000 658,263
Ibusz Leisure & Tourism 800 4,482
Ibusz, new Leisure & Tourism 267 1,386
------------
1,211,611
- -----------------------------------------------------------------------------------------
</TABLE>
7
<PAGE>
Templeton Emerging Markets Fund, Inc.
Investment Portfolio, November 30, 1995 (unaudited) (cont.)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SHARES/PRINCIPAL IN
INDUSTRY LOCAL CURRENCY* VALUE
- -----------------------------------------------------------------------------------------
LONG TERM SECURITIES (CONT.)
- -----------------------------------------------------------------------------------------
<S> <C> <C> <C>
India 1.2%
ATV Project India Ltd. Machinery & Engineering 200,000 $ 134,690
Bharat Petroleum Corp.,
Ltd. Energy Sources 65,000 424,703
Bses Ltd. Utilities Electrical & Gas 21,650 78,795
DCW Ltd. Chemicals 12,500 14,687
Essar Shipping Ltd. Transportation 59,250 53,485
Garden Silk Mills Ltd. Textiles & Apparel 85,700 88,414
Grasim Industries Ltd
Ord INR10 Multi-Industry 11,000 159,507
Indian Petrochemicals
Corp. Ltd. Chemicals 76,500 238,960
Indian Rayon and
Industries Ltd. Multi-Industry 10,500 124,574
Industrial Credit &
Investment Corp. of
India Ltd. Financial Services 439,600 988,927
Oriental Bank of
Commerce Banking 14,200 20,754
Reliance Industries
Ltd. Chemicals 50,000 306,634
Videocon International
Ltd. Appliances & Household Durables 90,000 189,569
------------
2,823,699
- -----------------------------------------------------------------------------------------
Indonesia 4.6%
PT Anwar Sierad, fgn. Food & Household Products 245,500 120,949
PT Astra International,
fgn. Multi-Industry 41,100 81,894
PT Barito Pacific
Timber, fgn. Forest Products & Paper 5,373,000 3,941,220
PT Charoen Pokphand
Indonesia, fgn. Food & Household Products 500,000 1,007,226
PT Duta Anggada Realty,
fgn. Real Estate 440,000 231,224
PT Duta Pertiwi
Nusantara Chemicals 409,750 116,636
PT Eratex Djaja, fgn. Textiles & Apparel 283,000 102,244
PT Gadjah Tunggal, fgn. Industrial Components 83,000 47,252
PT Hadtex Indosyntec,
fgn. Textiles & Apparel 953,000 500,810
PT Intan Wijaya
Chemical Industry,
fgn. Chemicals 526,000 135,330
PT Japfa Comfeed
Indonesia, fgn. Food & Household Products 539,000 271,447
PT Metrodata
Electronic, fgn. Electrical & Electronics 347,000 224,141
PT Multipolar Corp.,
fgn. Electrical & Electronics 39,000 18,360
PT Polysindo Eka
Perkasa, fgn. Textiles & Apparel 6,348,000 3,822,422
PT Pudjiadi Prestige
Ltd., fgn. Real Estate 451,500 286,698
PT Sinar Mas Multi
Artha, fgn. Multi-Industry 222,000 192,008
------------
11,099,861
- -----------------------------------------------------------------------------------------
Israel 0.3%
Bank Hapoalim BM Banking 30,148 49,449
Clal Industries Ltd. Multi-Industry 40,000 217,220
Discount Investment
Corp. Multi-Industry 6,000 342,648
The First International
Bank of Israel Banking 977 102,301
------------
711,618
- -----------------------------------------------------------------------------------------
</TABLE>
8
<PAGE>
Templeton Emerging Markets Fund, Inc.
Investment Portfolio, November 30, 1995 (unaudited) (cont.)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SHARES/PRINCIPAL IN
INDUSTRY LOCAL CURRENCY* VALUE
- -----------------------------------------------------------------------------------------
LONG TERM SECURITIES (CONT.)
- -----------------------------------------------------------------------------------------
<S> <C> <C> <C>
Korea (South)
1.4%
Dae Duck Electronics
Co. Ltd. Electrical & Electronics 4,000 $ 182,573
Daegu Bank Co. Ltd. Banking 43,190 752,049
Daegu Bank Co. Ltd.,
new Banking 9,423 157,965
Daehan Synthetic Fiber
Co. Ltd. Textiles & Apparel 2,410 314,287
Hae In Corp. Ltd. Merchandising 3,951 274,286
Hankook Cosmetics Co.
Ltd. Health & Personal Care 8,700 292,390
Kyung Dong Boiler Co
Ltd Energy Equipment & Services 7,030 343,906
Kyung Dong Boiler Co.
Ltd., new Energy Equipment & Services 1,124 53,892
Saehan Precision Co Ltd Electrical & Electronics 8,000 306,235
Ssangyong Oil Refining
Co Ltd Energy Equipment & Services 15,000 428,210
Yuhwa Textiles & Apparel 3,580 211,832
------------
3,317,625
- -----------------------------------------------------------------------------------------
Malaysia 6.3%
Federal Flour Mills
Bhd. Food & Household Products 779,999 2,428,850
Malayawata Steel Bhd.,
fgn. Metals & Mining 738,000 1,262,483
Malaysian International
Shipping
Corp. Bhd., fgn. Transportation 1,930,666 4,718,222
Oriental Holdings Bhd. Automobiles 988,200 4,635,231
Perlis Plantations Bhd. Multi-Industry 626,879 1,927,338
Perlis Plantations
Bhd., fgn. Multi-Industry 50,000 153,725
------------
15,125,849
- -----------------------------------------------------------------------------------------
Mexico 5.3%
Cemex SA, B Building Materials & Components 268,250 854,413
Cifra SA, C Merchandising 774,488 799,670
DESC SA, A Multi-Industry 138,000 423,066
DESC SA, B Multi-Industry 1,000 3,384
Grupo Financiero
Banamex Accival SA, B Banking 613,000 940,449
Grupo Financiero
Banamex Accival SA, L Banking 30,650 43,524
Grupo Financiero
Bancomer SA de CV, B Banking 1,576,000 435,047
Grupo Financiero
Bancomer SA de CV, L Banking 2,730,370 659,492
Grupo Financiero Serfin
SA, B Banking 752,000 467,068
Grupo Industrial Alfa
SA, A Multi-Industry 84,576 995,606
Telmex-Telefonos de
Mexico SA, L, ADR Telecommunications 200,700 6,623,100
Tubos de Acero de
Mexico SA Machinery & Engineering 6,579 46,276
Vitro SA Food & Household Products 225,162 451,220
------------
12,742,315
- -----------------------------------------------------------------------------------------
</TABLE>
9
<PAGE>
Templeton Emerging Markets Fund, Inc.
Investment Portfolio, November 30, 1995 (unaudited) (cont.)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SHARES/PRINCIPAL IN
INDUSTRY LOCAL CURRENCY* VALUE
- -----------------------------------------------------------------------------------
LONG TERM SECURITIES (CONT.)
- -----------------------------------------------------------------------------------
<S> <C> <C> <C>
Pakistan 0.3%
National Development
Leasing Corp. Financial Services 148,500 $ 75,952
Pakistan Telecom Corp.
PTC Telecommunications 748,000 596,812
------------
672,764
- -----------------------------------------------------------------------------------
Philippines
10.6%
Keppel Philippine
Holdings Inc., B Machinery & Engineering 381,544 174,853
Philex Minning Corp., B Metals & Mining 5,187,339 594,310
Philippine Commercial
International Bank
Inc. Banking 387,786 3,258,084
Philippine Long
Distance Telephone
Co., ADR Telecommunications 223,753 12,530,168
Philippine National
Bank Banking 783,554 6,942,315
RFM Corp. Food & Household Products 5,962,500 1,480,094
Sime Darby Pilipinas
Inc. Industrial Components 573,286 394,086
------------
25,373,910
- -----------------------------------------------------------------------------------
Poland 0.1%
Bank Slaski SA W
Katowicach Banking 5,000 287,527
- -----------------------------------------------------------------------------------
Portugal 6.6%
Banco Chemical
(Portugal) Banking 9,800 103,437
Banco Comercial
Portugues SA Banking 633,896 8,300,571
Banco Espirito Santo e
Comercial de Lisboa Banking 45,500 651,329
Banco Portugues de
Investimento SA Banking 226,860 2,529,147
Banco Portugues do
Investimento SA, new Banking 124,482 1,305,669
Banco Totta & Acores SA Banking 101,000 1,629,032
Banco Totta & Acores
SA, new Banking 9,181 135,968
Espirito Santo
Financial Holding SA,
ADR Banking 114,000 1,125,750
Portucel Industrial
Empresa Product de
Celulose SA Forest Products & Paper 7,000 41,559
------------
15,822,462
- -----------------------------------------------------------------------------------
Singapore 3.8%
First Capital Corp.
Ltd., fgn. Real Estate 21,000 56,576
G.P. Batteries
International Ltd. Electrical & Electronics 35,000 81,900
GP Batteries
International Ltd.,
wts. Electrical & Electronics 8,750 4,856
Jaya Holdings Ltd. Transportation 447,500 491,758
Jaya Holdings Ltd.,
3.00%, conv. ln. stk.,
8/31/98 Transportation 15,900* 25,927
Jaya Holdings Ltd.,
wts. Transportation 30,051 19,707
Jaya Holdings Ltd.,
wts. Transportation 36,780 25,945
Prima Ltd. Food & Household Products 530,000 1,863,736
Singapore Bus Service
(1978) Ltd., fgn. Transportation 903,600 6,278,114
TIBS Holdings Ltd. Transportation 105,600 254,548
Tibs Holdings Ltd.,
wts. Transportation 40,380 29,201
------------
9,132,268
- -----------------------------------------------------------------------------------
</TABLE>
10
<PAGE>
Templeton Emerging Markets Fund, Inc.
Investment Portfolio, November 30, 1995 (unaudited) (cont.)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SHARES/PRINCIPAL IN
INDUSTRY LOCAL CURRENCY* VALUE
- -----------------------------------------------------------------------------------------
LONG TERM SECURITIES (CONT.)
- -----------------------------------------------------------------------------------------
<S> <C> <C> <C>
South Africa:
0.7%
Del Monte Royal Foods
Ltd Food & Household Products 315,825 $ 447,826
Engen Ltd. Energy Sources 109,341 715,573
First National Bank
Holdings Ltd. Banking 28,900 256,118
Rembrandt Group Ltd. Multi-Industry 33,400 300,552
------------
1,720,069
- -----------------------------------------------------------------------------------------
Sri Lanka 0.2%
Aitken Spence & Co.
Ltd. Textiles & Apparel 50,000 176,526
Lanka Ceramic Ltd. Building Materials & Components 162,000 121,690
Lanka Walltile Ltd. Building Materials & Components 27,300 25,506
United Motor Lanka Ltd. Automobiles 158,600 77,438
------------
401,160
- -----------------------------------------------------------------------------------------
Thailand 0.4%
American Standard
Sanitaryware (THB)
Public Co. Ltd., fgn. Health & Personal Care 12,000 195,072
Asia Fibre Public Co.
Ltd., fgn. Textiles & Apparel 233,600 134,626
Charoen Pokphand
Feedmill Public Co.
Ltd. Food & Household Products 64,000 295,072
Kian Gwan (Thailand)
Public Co. Ltd., fgn. Real Estate 26,000 67,945
Padaeng Industry Public
Co. Ltd., fgn. Metals & Mining 35,100 23,367
Thai Rayon Public Co.
Ltd. Textiles & Apparel 4,100 31,777
Thai Wah Public Co.
Ltd., fgn. Food & Household Products 8,450 10,579
United Standard
Terminal Public Co.
Ltd., fgn. Wholesale & International Trade 44,000 83,506
------------
841,944
- -----------------------------------------------------------------------------------------
Turkey 8.2%
Akbank Banking 14,122,986 3,404,832
Akcimento Building Materials & Components 1,656,000 843,668
Alcatel Teletas
Endustri Tic AS Telecommunications 152,000 49,782
Arcelik AS Appliances & Household Durables 22,222,464 2,183,430
Bagfas Chemicals 2,805,790 1,097,607
Bekoteknik AS Appliances & Household Durables 6,779,957 524,287
Celik Halat ve Sanayii
ve Ticaret AS Building Materials & Components 5,499,375 425,261
Cimentas Izmir Cimento
Fabrikasi Turk AS Building Materials & Components 1,497,250 721,927
Cimsa Cimento Sanayi ve
Ticaret AS Building Materials & Components 640,000 320,233
Compagnie Financiere
Ottomane SA Banking 37,000 1,330,772
Eregli Demir ve Celik
Fabrikalari AS Metals & Mining 22,736,250 2,047,752
Finans Bank AS, br. Banking 33,658,431 1,316,696
Izocam Ticaret ve
Sanayii AS, br. Building Materials & Components 2,786,529 294,066
Koc Holding AS Multi-Industry 2,793,000 442,123
Koc Yatirim ve Sanayii
Mamullesi
Pazarlanca AS Multi-Industry 3,725,532 847,328
</TABLE>
11
<PAGE>
Templeton Emerging Markets Fund, Inc.
Investment Portfolio, November 30, 1995 (unaudited) (cont.)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SHARES/PRINCIPAL IN
INDUSTRY LOCAL CURRENCY* VALUE
- ------------------------------------------------------------------------------------------
LONG TERM SECURITIES (CONT.)
- ------------------------------------------------------------------------------------------
<S> <C> <C> <C>
Turkey (cont.)
Marshall Boya ve Vernik
Sanayii AS Industrial Components 5,828,256 $ 392,368
Otosan Otomobil Sanayii
AS Automobiles 6,322,932 1,184,975
Tekstil Bankasi AS, br. Banking 1,277,509 47,651
Tofas Turk Otomobil
Fabrikasi AS Automobiles 961,000 108,410
Trakya Cam Sanayii AS Building Materials & Components 2,400,000 235,808
Turk Demir Dokum, br. Appliances & Household Durables 10,191,362 1,168,224
Turkiye Garanti Bankasi
AS Banking 5,581,813 406,245
Vakif Finansal Kiralama
AS Financial Services 2,528,010 91,995
------------
19,485,440
- ------------------------------------------------------------------------------------------
Venezuela 0.7%
Ceramica Carabobo CA,
A, ADR Building Materials & Components 130,000 138,125
Consolidada Carabobo, B Building Materials & Components 1,680,000 47,191
Electricidad de Caracas Utilities Electrical & Gas 973,606 563,379
Manufacturera de
Aparatos Domesticos SA Appliances & Household Durables 36,000 28,820
Mavesa SA, ADR Food & Household Products 193,000 460,815
Siderurgica Venezolana
Sivensa Saica Svs Metals & Mining 1,455,440 433,361
Siderurgica Venezolana
Sivensa Saica SVS, ADR Metals & Mining 21,750 32,381
Venezolana
Prerreducidos Caroni
Venprecar CA, GDS,
144a Metals & Mining 1,764 7,497
------------
1,711,569
- ------------------------------------------------------------------------------------------
Zimbabwe 0.1%
Transarchipel Shipping
Ltd.- TSL Multi-Industry 700,000 180,815
- ------------------------------------------------------------------------------------------
TOTAL LONG TERM SECURITIES 223,626,504
- ------------------------------------------------------------------------------------------
<CAPTION>
SHORT TERM OBLIGATIONS: 7.5%
<S> <C> <C> <C>
U.S. Treasury Bills,
5.08% to 5.40% with
maturities to 1/25/96 U.S. 18,107,000* 18,031,148
- ------------------------------------------------------------------------------------------
TOTAL INVESTMENTS: 101.1% 241,657,652
OTHER ASSETS, LESS LIABILITIES: (0.1)% (2,691,413)
------------
TOTAL NET ASSETS: 100.0% $238,966,239
============
</TABLE>
* PRINCIPAL AMOUNT IN CURRENCY OF COUNTRY INDICATED.
SEE NOTES TO FINANCIAL STATEMENTS.
12
<PAGE>
Templeton Emerging Markets Fund, Inc.
Financial Highlights, November 30, 1995 (unaudited)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
NET ASSET VALUE
TOTAL NET ASSETS PER SHARE
-------------------------- ----------------
<S> <C> <C> <C> <C>
Net Asset Value:
Beginning of period, September
1, 1995 $294,962,203 $ 18.23
Net investment income $ 484,780 $ .03
Distributions from net invest-
ment income (3,803,300) (.25)
Net loss on security and for-
eign currency transactions (22,950,125) (1.51)
Distributions from net realized
gain (33,663,246) (2.21)
Proceeds from reinvestment of
distribution 3,935,927 .26
------------ -------
Net decrease in net asset value (55,995,964) (3.68)
------------ -------
End of period, November 30, 1995 $238,966,239 $ 14.55
============ =======
</TABLE>
- ---
This report is sent to the shareholders of Templeton Emerging Markets Fund,
Inc. for their information. It is not a prospectus, circular, or representation
intended for use in the purchase or sale of shares of the Fund or of any secu-
rities mentioned in the report.
13
<PAGE>
Notes
-----
<PAGE>
Notes
-----
<PAGE>
- --------------------------------------------------------------------------------
TEMPLETON EMERGING
MARKETS FUND, INC.
700 Central Avenue
St. Petersburg,
Florida 33701-3628
Investors should be aware that the value of investments made for the Fund may
go up as well as down and that the Investment Manager may make errors in
selecting securities for the Fund's portfolio. Like any investment in
securities, the Fund's portfolio will be subject to the risk of loss from
market, currency, economic, political, and other factors. The Fund and Fund
investors are not protected from such losses by the Investment Manager.
Therefore, investors who cannot accept the risk of such losses should not
invest in shares of the Fund.
To ensure the highest quality of service, telephone calls to or from our
service departments may be monitored, recorded, and accessed. These calls can
be determined by the presence of a regular beeping tone.
- --------------------------------------------------------------------------------
TLEMF Q95 01/96
[RECYCLED PAPER LOGO APPEARS HERE]
TEMPLETON
EMERGING
MARKETS
FUND, INC.
First Quarter Report
November 30, 1995
[LOGO OF FRANKLIN TEMPLETON APPEARS HERE]
