Templeton Emerging Markets Appreciation Fund, Inc.
Investment Portfolio, December 31, 1994 (unaudited)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Geographic Distribution
Total Net Assets
9/30/94 12/31/94
------- --------
<S> <C> <C>
Asia 43.4% 41.7%
Latin America 26.0% 24.3%
Europe 12.3% 12.9%
Mid East Africa 8.4% 5.2%
Short Term Obligations &
Other Assets 11.9% 15.9%
</TABLE>
<TABLE>
<CAPTION>
INDUSTRY ISSUE COUNTRY SHARES VALUE
- --------------------------------------------------------------------------
COMMON STOCKS: 52.8%
- --------------------------------------------------------------------------
<S> <C> <C> <C>
Appliances & Household Durables: 1.4%
Arcelik AS Tur. 855,218 $ 219,287
Bekoteknik AS Tur. 211,000 36,249
Semi-Tech (Global) Co., Ltd. H.K. 104,000 175,405
Turk Demir Dokum br. Tur. 1,886,400 348,258
-----------
779,199
- --------------------------------------------------------------------------
</TABLE>
1
<PAGE>
Templeton Emerging Markets Appreciation Fund, Inc.
Investment Portfolio, December 31, 1994 (unaudited) (cont.)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
INDUSTRY ISSUE COUNTRY SHARES VALUE
<C> <S> <C> <C> <C>
- -------------------------------------------------------------------------------
COMMON STOCKS (CONT.)
- -------------------------------------------------------------------------------
Automobiles: 1.7%
Associated Motorways Ltd. Lka. 72,000 $ 145,466
Jardine International Motor
Holdings Ltd. H.K. 152,000 160,103
Oriental Holdings Bhd., fgn. Mal. 108,000 558,293
Otosan Otomobil Sanayii AS Tur. 141,800 34,905
-----------
898,767
- -------------------------------------------------------------------------------
Banking: 13.1%
Akbank Tur. 2,716,000 731,230
Akbank new Tur. 679,000 174,103
Akbank rts. Tur. 2,716,000 156,692
Alpha Credit Bank Gr. 20,000 859,642
Amalgamated Bank of South Africa S.Af. 100,000 284,872
Banco Comercial Portugues SA Port. 37,000 484,269
Banco Espirito Santo de Comercial
de Lisboa Port. 26,000 503,901
Banco Portugues de Atlantico SA Port. 36,800 465,905
Banco Portugues de Investimento
SA Port. 11,000 164,460
Banco Totta & Acores SA Port. Port. 12,000 268,815
Bangkok Bank Public Co., Ltd. Thai. 16,100 132,109
Ergo Bank SA Gr. 18,000 741,816
Espirito Santo Financial Holdings
SA, ADR Port. 19,820 265,093
First National Bank Holdings Ltd. S.Af. 40,000 240,668
Grupo Financiero Banamex Accival
SA, C Mex. 72,000 211,680
Grupo Financiero Bancomer SA, C Mex. 555,000 299,700
HSBC Holdings PLC H.K. 55,233 596,052
National Bank of Greece SA Gr. 2,000 93,044
Nedcor Ltd. S.Af. 15,000 159,780
Thai Farmers Bank Public Co. Ltd. Thai. 200 1,378
Turkiye Garanti Bankasi AS Tur. 1,001,700 251,709
-----------
7,086,918
- -------------------------------------------------------------------------------
Building Materials & Components: 2.9%
Akcimento Ticaret AS Tur. 25,000 39,744
Cemex SA, B Mex. 71,000 369,910
Cimentas Izmir Cimento Fabrikasi
TAS Tur. 528,000 365,538
Cimsa Cimento Sanayi ve Ticaret
AS Tur. 47,000 119,308
Izocam Ticaret ve Sanayi AS, br. Tur. 29,000 6,321
K Wah International Holdings Ltd. H.K. 809,606 169,507
Royal Ceramic Industries Public
Co. Ltd. Thai. 149,000 189,922
Royal Ceramic Industries Public
Co. Ltd., fgn. Thai. 32,000 40,789
Shanghai Yaohua Pilkington Glass,
B Chn. 77,000 75,460
Thai Asahi Glass Public Co. Ltd. Thai. 72,610 199,565
-----------
1,576,064
- -------------------------------------------------------------------------------
</TABLE>
2
<PAGE>
Templeton Emerging Markets Appreciation Fund, Inc.
Investment Portfolio, December 31, 1994 (unaudited) (cont.)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
INDUSTRY ISSUE COUNTRY SHARES VALUE
<C> <S> <C> <C> <C>
- -------------------------------------------------------------------------------
COMMON STOCKS (CONT.)
- -------------------------------------------------------------------------------
Chemicals: 1.8%
Petkim Petrokimya Holding AS Tur. 1,578,000 $ 728,308
PT Unggul Indah Corp., fgn. Indo. 62,000 74,045
Shanghai Chlor-Alkali Chemical
Co. Ltd., B Chn. 312,000 84,240
Shenzhen Petrochemical (Group)
Shareholding Co.,
Ltd., B Chn. 208,000 79,302
-----------
965,895
- -------------------------------------------------------------------------------
Construction & Housing: 0.3%
Hopewell Holdings Ltd. H.K. 198,000 163,774
- -------------------------------------------------------------------------------
Electrical & Electronics: 0.1%
Great Wall Electronic
International Ltd. H.K. 566,000 44,622
- -------------------------------------------------------------------------------
Electrical Components & Instruments: 0.1%
S.Megga International Holdings
Ltd. H.K. 494,000 55,545
- -------------------------------------------------------------------------------
Energy Sources: 2.1%
Engen Ltd. S.Af. 25,775 240,533
Petrobras-Petroleo Brasileiro SA,
pfd. Brz. 4,797,000 605,996
YPF Sociedad Anonima, ADR Arg. 15,000 320,625
-----------
1,167,154
- -------------------------------------------------------------------------------
Financial Services: 2.0%
Alpha Leasing SA Gr. 10,000 254,061
Etba Leasing Gr. 12,600 254,519
Peregrine Investments Holdings
Ltd. H.K. 106,000 124,666
PT BBL Dharmala Finance, fgn. Indo. 48,500 86,056
PT First Indonesian Finance &
Investment Corp., fgn. Indo. 112,000 63,694
PT Gajah Surya Multi Finance.,
fgn. Indo. 293,000 158,297
PT Inter-Pacific Bank, fgn. Indo. 9,500 10,373
Sun Hung Kai & Co. Ltd. H.K. 349,000 139,826
-----------
1,091,492
- -------------------------------------------------------------------------------
</TABLE>
3
<PAGE>
Templeton Emerging Markets Appreciation Fund, Inc.
Investment Portfolio, December 31, 1994 (unaudited) (cont.)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
INDUSTRY ISSUE COUNTRY SHARES VALUE
<C> <S> <C> <C> <C>
- -------------------------------------------------------------------------------
COMMON STOCKS (CONT.)
- -------------------------------------------------------------------------------
Food & Household Products: 3.7%
Chareon Pokphand Feedmill Public
Co. Ltd., fgn. Thai. 13,000 $ 88,030
Dairy Farm International Holdings
Ltd. H.K. 121,874 130,734
Elais Oleaginous Co. Gr. 5,000 304,040
Hellas Can Container
Manufacturers Gr. 18,270 311,602
Hellenic Bottling Co., SA Gr. 5,000 177,010
PT Anwar Sierad, fgn. Indo. 102,000 92,812
PT Charoen Pokphand Indonesia,
fgn. Indo. 23,000 94,177
PT Cipendawa Farm Enterprises,
fgn. Indo. 65,000 75,409
PT Japfa Comfeed Indonesia, fgn. Indo. 67,000 80,016
PT Multibreeder Adirama, fgn. Indo. 129,000 218,619
Tat Konserve Sanayii AS Tur. 19,000 25,820
Vitro SA Mex. 92,000 422,280
-----------
2,020,549
- -------------------------------------------------------------------------------
Industrial Components: 0.5%
Marshall Boya ve Vernik Sanayii
As Tur. 578,760 120,204
Shanghai Rubber Belt Co. Ltd., B Chn. 549,000 82,350
Shanghai Tyre & Rubber Co. Ltd.,
B Chn. 169,000 64,220
-----------
266,774
- -------------------------------------------------------------------------------
Leisure & Tourism: 0.6%
Hinds Hotels International Ltd. Sing. 129,000 160,199
Shangri-La Hotels (Malaysla) Bhd. Mal. 141,000 174,490
-----------
334,689
- -------------------------------------------------------------------------------
Machinery & Engineering: 0.4%
Shanghai Erfangji Textile
Machinery Co. Ltd., B Chn. 294,000 58,800
Shanghai Industrial Sewing
Machine Corp. Chn. 192,000 76,800
Shanghai Steel Tube Co. Ltd., B Chn. 227,000 62,879
-----------
198,479
- -------------------------------------------------------------------------------
Merchandising: 1.0%
Dickson Concepts (International)
Ltd. H.K. 227,000 148,155
Fortei Holdings Ltd. H.K. 1,668,000 131,500
Wo Kee Hong Holdings Ltd. H.K. 1,010,000 232,349
Yaohan Hongkong Corp., Ltd. H.K. 460,000 62,423
-----------
574,427
- -------------------------------------------------------------------------------
</TABLE>
4
<PAGE>
Templeton Emerging Markets Appreciation Fund, Inc.
Investment Portfolio, December 31, 1994 (unaudited) (cont.)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
INDUSTRY ISSUE COUNTRY SHARES VALUE
<C> <S> <C> <C> <C>
- -------------------------------------------------------------------------------
COMMON STOCKS (CONT.)
- -------------------------------------------------------------------------------
Metals & Mining: 1.2%
Antofagasta Holdings PLC Chil. 34,000 $ 167,558
Eregli Demir ve Celik Fabrikalari
AS Tur. 1,361,250 122,163
Malayawata Steel Bhd., fgn. Mal. 152,000 275,011
Tubos de Acero de Mexico SA Mex. 18,000 85,860
-----------
650,592
- -------------------------------------------------------------------------------
Multi-Industry: 2.5%
Clal Industries Ltd. Isr. 10,000 59,543
DESC Sociedad de Fomento
Industrial SA, B Mex. 3,033 14,558
Grupo Industrial Alfa SA, A Mex. 29,000 278,400
Hayleys Ltd. Lka. 45,600 176,445
Jardine Strategic Holdings, Ltd. H.K. 25,000 82,068
Koc Yatirim ve Sanayii Mamullesi
Pazarlanca As Tur. 108,000 83,077
Lai Sun Garment International
Ltd. H.K. 163,000 196,969
Perlis Plantations Bhd., fgn. H.K. 60,000 197,376
Rembrandt Group Ltd. S.Af. 10,000 68,762
Shenzen Gintian Industrial Co.
Ltd., B Chn. 174,000 77,583
Stelux Holdings Ltd. H.K. 473,254 140,676
-----------
1,375,457
- -------------------------------------------------------------------------------
Real Estate: 5.0%
Bangkok Land Co. Ltd., fgn. Thai. 118,000 293,766
Cheung Kong Holdings Ltd. H.K. 146,000 594,378
Hang Lung Development Co. Ltd. H.K. 300,000 426,494
Hang Lung Development Co., Ltd.
wts H.K. 30,000 4,498
Lai Sun Development Co. Ltd. H.K. 1,178,000 146,156
New World Development Co. Ltd. H.K. 105,000 280,226
PT Summarecon Agung, fgn. Indo. 153,000 164,764
Shanghai Jinqiao Export
Processing Zone
Development, B Chn. 115,000 80,500
Shanghai Outer Gaoqiao Free Trade
Zone
Devolpment. Co. Ltd., B Chn. 131,000 77,290
Shenzhen Properties & Resources
Development
(Group) Ltd., B Chn. 190,000 72,439
Sun Hung Kai Properties Ltd. H.K. 65,000 388,110
Tian An China Investments Co.
Ltd. H.K. 768,000 153,848
-----------
2,682,469
- -------------------------------------------------------------------------------
</TABLE>
5
<PAGE>
Templeton Emerging Markets Appreciation Fund, Inc.
Investment Portfolio, December 31, 1994 (unaudited) (cont.)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
INDUSTRY ISSUE COUNTRY SHARES VALUE
<C> <S> <C> <C> <C>
- -------------------------------------------------------------------------------
COMMON STOCKS (CONT.)
- -------------------------------------------------------------------------------
Recreation, Other Consumer Goods: 1.6%
China First Pencil Co. Ltd., B Chn. 310,000 $ 104,780
Fu Hui Jewellery Co. ( H.K.) Ltd. H.K. 1,572,000 93,457
Shanghai Forever Bicycle Co.
Ltd., B Chn. 295,000 61,360
Shanghai Phoenix Bicycle Co. Ltd. Chn. 291,000 149,865
Shanghai Wingsung Stationery Co.
Ltd., B Chn. 297,000 133,650
Shenzen China Bicycles Co.
(Holdings) Ltd., B Chn. 116,000 50,973
Yue Yuen Industrial (Holdings)
Ltd. H.K. 1,288,000 254,687
-----------
848,772
- -------------------------------------------------------------------------------
Telecommunications: 3.5%
Telebras-Telecomunicacoes
Brasileiras SA, pfd. Brz. 15,533,000 695,042
Telefonos de Mexico SA, L, ADR Mex. 28,800 1,180,800
-----------
1,875,842
- -------------------------------------------------------------------------------
Textiles & Apparel: 2.7%
Goldlion Holdings Ltd. H.K. 519,000 123,420
Hua Thai Manufacturing Co, Ltd. Thai. 16,000 35,690
Laws International Holdings Ltd. H.K. 438,000 74,722
PT Eratex Djaja, fgn. Indo. 144,000 62,238
PT Ganda Wangsa Utama, fgn. Indo. 275,600 125,387
PT Hadtex Indosyntec, fgn. Indo. 114,000 66,128
PT Polysindo Eka Perkasa, fgn. Indo. 199,000 375,728
Saha Union Public Co. Ltd., fgn. Thai. 80,000 94,802
Shanghai Lian Hua Fibre Corp., B Chn. 207,000 78,660
Thai Rayon Public Co. Ltd. Thai. 17,000 158,454
Thai Wacaol Public Co. Ltd., fgn. Thai. 12,500 101,389
Tungtex (Holdings) Co. Ltd. H.K. 1,364,000 158,656
-----------
1,455,274
- -------------------------------------------------------------------------------
Transportation: 1.3%
Chiwan Wharf Holdings Ltd., B Chn. 170,000 65,913
Malaysian International Shipping
Corp. Bhd., fgn. Mal. 229,333 655,622
-----------
721,535
- -------------------------------------------------------------------------------
Utilities--Electrical & Gas: 3.0%
CEZ, GDR Csk. 8,000 368,000
CEZ, GDS Csk. 6,000 276,000
Compania Boliviana de Energia
Electricas SA Bol. 12,400 282,100
Electrobras-Centrais Electricas
Brasileiras SA, B, pfd. Brz. 1,960,000 680,331
-----------
1,606,431
- -------------------------------------------------------------------------------
</TABLE>
6
<PAGE>
Templeton Emerging Markets Appreciation Fund, Inc.
Investment Portfolio, December 31, 1994 (unaudited) (cont.)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
INDUSTRY ISSUE COUNTRY SHARES VALUE
<C> <S> <C> <C> <C>
- -------------------------------------------------------------------------------
COMMON STOCKS (CONT.)
- -------------------------------------------------------------------------------
Wholesale & International Trade: 0.3%
East Asiatic Co., Ltd. H.K. 945,000 $ 146,559
-----------
TOTAL COMMON STOCKS 28,587,279
- -------------------------------------------------------------------------------
<CAPTION>
PRINCIPAL IN
LOCAL CURRENCY*
- -------------------------------------------------------------------------------
<C> <S> <C> <C> <C>
BONDS: 31.3%
Corporate Bonds: 11.8%
- -------------------------------------------------------------------------------
Bariven SA, 10.625%, 3/17/02 U.S. 500,000 418,125
Bridas Corp., Yankee, 12.50%,
11/18/99 U.S. 400,000 382,000
CEZ AS, 14.375%, 1/27/01 U.S. 15,590,000 594,808
Essar Gujarat Ltd., 8.025%,
FRN, 7/15/99 U.S. 500,000 500,000
Guarenteed Capital Corp.,
11.00% 3/21/97 U.S. 300,000 279,000
Grupo Mexicano de Desarrolla
SA , 6.25%, 2/17/01 U.S. 250,000 154,688
Henderson Capital
International Ltd., 4.00%,
10/27/96 U.S. 600,000 579,750
Industrial Finance Corp.,
Thailand, Zero, 6/15/95 Thai. 10,000,000 381,836
Industrias Klabin de Papel
Celelose SA, 12.125%
12/28/02 U.S. 210,000 206,325
Iochpe--Maxion SA, 144A,
12.375% 11/08/02 U.S. 250,000 242,500
Philippine Long Distance
Telephone Co., 10.625%,
6/20/04 U.S. 500,000 486,250
PIV Investment Finance
(Cayman) Ltd., 4.50%, conv.,
12/01/00 U.S. 430,000 292,400
PT Polysindo Eka Perkasa
Global , 13.00%,
6/15/01 U.S. 500,000 492,500
Produvisa Capital Corp.,
9.50%, 11/29/96 U.S. 500,000 450,000
Telefonica de Argentina SA,
11.875%, 11/01/04 U.S. 450,000 408,375
Tjiwi Kimia Int'l Finance Co.
BV, 13.25%, 8/01/01 U.S. 250,000 252,500
-----------
6,121,057
- -------------------------------------------------------------------------------
BONDS--GOVERNMENT & GOVERNMENT AGENCIES:
19.5%
- -------------------------------------------------------------------------------
Associacion Nacional del
Cafe, 11.00%, 8/31/98 U.S. 400,000 400,000
Banco Ganadero, 9.75%,
8/26/99 U.S. 200,000 194,000
Bank Foreign Economic Affairs
USSR, 7.00%, 3/29/96 Ger. 1,000,000 542,075
Bocon Previsionales III,
3.3444%, FRN, 9/01/02 Arg. 1,250,000 468,727
Bocon Provisionales I,
3.3444%, FRN, 4/01/07 Arg. 1,250,000 431,228
Bonos de la Tesoreria de La
Federacion, 7/27/95 U.S. 420,000 376,307
Ceskoslovenska Obchondi
Banka, 11.125%,
8/26/97 Csk. 5,420,000 192,678
</TABLE>
7
<PAGE>
Templeton Emerging Markets Appreciation Fund, Inc.
Investment Portfolio, December 31, 1994 (unaudited) (cont.)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PRINCIPAL IN
INDUSTRY ISSUE COUNTRY LOCAL CURRENCY* VALUE
- -------------------------------------------------------------------------------
<C> <S> <C> <C> <C>
BONDS--GOVERNMENT & GOVERNMENT AGENCIES
(CONT.)
- -------------------------------------------------------------------------------
Dharmala Sakti Sajahtera,
9/25/96, CP Indo. 500,000,000 $ 164,923
Ecuador Loan
Participation, FRN
8/15/96 U.S. 1,500,000 810,000
Goldman Sachs Argentina
Local Markets Securities
Trust 94-1, 8/15/01 U.S. 750,000 626,250
Government of Brazil,
6.6025%, FRN A, 1/01/01 U.S. 1,127,000 943,158
Government of Brazil,
6.6875%, EI, FRN, L,
4/15/06 U.S. 700,000 465,500
Kingdom of Jordan,
5.8125%, 12/23/05 U.S. 700,000 490,000
Kingdom of Morocco Loan
Participation, 5.9375%,
FRN, 01/01/09 U.S. 1,500,000 991,875
Morgan Stanley Repackaged
Argentina Domestic
Securities Trust, 14.75%
9/1/02 U.S. 430,000 325,187
National Bank of Hungary,
7.95%, 11/01/03 U.S. 200,000 159,226
National Bank of Hungary,
8.875%, 11/01/13 U.S. 300,000 213,000
Phillippine Pars, B, FRN,
5.25%, 12/01/17 U.S. 500,000 309,688
Poland, PDI, 3.25%, FRN,
10/27/14 U.S. 347,000 150,945
Poland, disc. 6.8125%,
FRN, 10/27/24 U.S. 619,000 445,680
Republic of Argentina
7.125%, FRN, 3/31/23 U.S. 600,000 364,500
Republic of Bulgaria IAB
6.0625%, FRN, 7/28/24 U.S. 1,000,000 421,250
Republic of Pakistan,
11.5%, 12/22/99 U.S. 140,000 136,850
Republic of Panama,
7.125%, FRN, 5/10/02 U.S. 500,000 408,125
Republic of Trinidad and
Tobago, 11.75%, 10/3/04 U.S. 330,000 330,000
Republic of Turkey Public
Participation, Ser. 4,
6.5825%, 2/21/96 U.S. 40,000 37,600
Republic of Turkey Public
Participation, Ser. 5,
6.8125%, 2/21/97 U.S. 295,000 265,500
Tribasa Toll Road Trust l,
10.50%, 12/01/11 U.S. 300,000 240,000
Vnesheconombank Loan
Participation U.S. 750,000 210,000
-----------
11,114,272
-----------
TOTAL BONDS 17,235,329
- -------------------------------------------------------------------------------
SHORT-TERM OBLIGATIONS: 17.2%
- -------------------------------------------------------------------------------
Federal National Mortgage
Association, 5.80% to
5.92%
with maturities to
1/12/95 U.S. 7,335,000 7,328,049
Goldman Sachs Group LP,
IDR Indexed CP, 13.881%,
6/15/95 U.S. 200,000 197,000
PT Polysindo Eka Perkasa,
6/21/95, CP Indo. 550,000,000 228,985
U. S. Treasury Bills,
4.025% to 5.27%, with
maturities to 2/09/95 U.S. 1,273,000 1,269,537
-----------
TOTAL SHORT-TERM OBLIGATIONS 9,023,571
- -------------------------------------------------------------------------------
TOTAL INVESTMENTS: 101.3% (cost
$60,120,568) 54,846,179
UNREALIZED DEPRECIATION ON FOWARD
FOREIGN EXCHANGE CONTRACTS 0.0% (11,835)
OTHER ASSETS, LESS LIABILITIES: (1.3%) (711,853)
-----------
TOTAL NET ASSETS: 100.0% $54,122,491
===========
</TABLE>
* CURRENCY OF COUNTRIES INDICATED.
8
<PAGE>
Templeton Emerging Markets Appreciation Fund, Inc.
Financial Highlights, December 31, 1994 (unaudited)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
NET ASSET VALUE
TOTAL NET ASSETS PER SHARE
------------------------ ----------------
<S> <C> <C> <C> <C>
Net Asset Value:
Beginning of period, October 1,
1994 $62,308,894 $ 14.72
Net investment income $ 608,449 $ 0.15
Distribution from net investment
income (1,333,109) (0.32)
Net loss on security and foreign
currency transactions (7,059,694) (1.66)
Distribution from net realized
gain (402,049) (0.10)
----------- -------
Net decrease in net asset value (8,186,403) (1.93)
----------- -------
End of period, December 31, 1994 $54,122,491 $ 12.79
=========== =======
</TABLE>
- ---
This report is sent to the shareholders of Templeton Emerging Markets Apprecia-
tion Fund, Inc. for their information. It is not a prospectus, circular or rep-
resentation intended for use in the purchase or sale of shares of the Fund or
of any securities mentioned in the report.
9
<PAGE>
Templeton Emerging Markets Appreciation Fund, Inc.
- --------------------------------------------------------------------------------
TRANSFER AGENT
Mellon Financial Services Securities Transfer Services 85 Challenger Road Over-
peck Centre Ridgefield Park, NJ 07660 800-526-0801
SHAREHOLDER INFORMATION
Weekly comparative net asset value and market price information about Templeton
Emerging Markets Appreciation Fund shares is published each Monday in The Wall
Street Journal, weekly in Barron's and each Saturday in The New York Times and
other newspapers in a table called "Publicly Traded Funds". Daily market prices
for the Fund's shares are published in the New York Stock Exchange Composite
Transactions section of newspapers under the designation "TempltnTEA". The
Fund's New York Stock Exchange trading symbol is TEA. The Fund's shares are
also listed and traded on the Pacific Stock Exchange.
For current information about the net asset value, call 1-800-237-0738.
If any shareholder is not receiving copies of the Reports to Shareholders be-
cause shares are registered in a broker's name or in a custodian's name, he or
she can write and request that his or her name be added to the Fund's mailing
list, by writing Templeton Emerging Markets Fund, Inc., 700 Central Avenue, St.
Petersburg, FL 33701.
10
<PAGE>
- --------------------------
TEMPLETON EMERGING MARKETS
APPRECIATION 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.
- --------------------------
[RECYCLED PAPER LOGO APPEARS HERE] TLTEA PF 12/94
TEMPLETON
EMERGING
MARKETS
APPRECIATION
FUND, INC.
Third Quarter Report
December 31, 1994
[LOGO OF FRANKLIN TEMPLETON APPEARS HERE]
