U.S. SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
 
FORM N-17F-2
 
CERTIFICATE OF ACCOUNTING OF SECURITIES AND SIMILAR INVESTMENTS IN THE
CUSTODY OF MANAGEMENT INVESTMENT COMPANIES
 
PURSUANT TO RULE N-17F-2

1. Investment Company Act File Number: 811-04985

Date Examination completed: January 24, 2008

 
2. State Identification Number:
 
AL AK AZ AR CA CO
CT DE DC FL GA HI
ID IL IN IA KS KY
LA ME MD MA MI MN
MS MO MT NE NV NH
NJ NM NY NC ND OH
OK OR PA RI SC SD
TN TX UT VT VA WA
WV WI WY PUERTO RICO
 
3. Exact name of investment company as specified in registration statement:
 
TEMPLETON EMERGING MARKETS FUND
 
4. Address of principal executive office: (number, street, city, state, zip code)
 
One Franklin Parkway San Mateo, CA 94403

 

 

 

Report of Independent Registered Public Accounting Firm

To the Board of Trustees of     

           

Franklin Templeton Limited Duration Income Trust

Franklin Real Estate Securities Trust

Franklin Strategic Series

Franklin High Income Trust

Franklin Capital Growth Fund

Franklin Templeton Money Fund Trust

Institutional Fiduciary Trust

Franklin Universal Trust

Templeton Emerging Markets Fund

Templeton Emerging Markets Income Fund

Templeton Global Income Fund

Templeton Global Investment Trust

Franklin Strategic Mortgage Portfolio

Franklin Investors Securities Trust

Franklin Value Investors Trust

Franklin Templeton Fund Allocator Series

Franklin Templeton Variable Insurance Products Trust

Templeton Russia and East European Fund, Inc.

Franklin Global Trust

Franklin Gold and Precious Metals Fund

     

and the Board of Directors of     
     

Franklin Custodian Funds, Inc.

Franklin Money Fund

Templeton Dragon Fund, Inc.

Templeton Institutional Funds, Inc.

We have examined management's assertion, included in the accompanying Management Statement Regarding Compliance with Certain Provisions of the Investment Company Act of 1940, that the funds (see Attachment I) (hereafter referred to as the “Funds”) complied with the requirements of subsections (b) and (c) of Rule 17f-2 under the Investment Company Act of 1940 (“the Act”) as of October 31, 2007. Management is responsible for the Funds' compliance with those requirements. Our responsibility is to express an opinion on management's assertion about the Funds' compliance based on our examination.
 
Our examination was conducted in accordance with the standards of the Public Company Accounting Oversight Board (United States) and, accordingly, included examining, on a test basis, evidence about the Funds' compliance with those requirements and performing such other procedures as we considered necessary in the circumstances. Included among our procedures were the following tests performed as of October 31, 2007, and with respect to agreement of security purchases and sales, for the period
indicated in Attachment I:
 

·     

Confirmation of all securities held by Franklin Templeton Investors Services, Inc. as they pertain to the security positions owned by the Funds and held in book entry form.


·     

Reconciliation of such security positions to the books and records of the Funds and Franklin Templeton Investor Services, Inc.

·     

Agreement of 123 security purchases and 123 security sales or maturities, since our last report, to the books and records of the Funds and Franklin Templeton Investor Services, Inc.

We believe that our examination provides a reasonable basis for our opinion. Our examination does not provide a legal determination on the Funds' compliance with specified requirements.
 
In our opinion, management's assertion that the Funds were in compliance with the requirements of subsections (b) and (c) of Rule 17f-2 of the Investment Company Act of 1940 as of October 31, 2007 with respect to securities reflected in the investment accounts of the Funds is fairly stated, in all material respects.
 
This report is intended solely for the information and use of the Board of Trustees and Board of Directors, management, and the Securities and Exchange Commission and is not intended to be and should not be used by anyone other than these specified parties.
 
 

/s/PricewaterhouseCoopers, LLP
 
San Francisco, California

January 24, 2008


Management Statement Regarding Compliance With Certain
Provisions of the Investment Company Act of 1940

We, as members of management of the Franklin Templeton Funds indicated in Attachment I (the “Funds”), are responsible for complying with the requirements of subsections (b) and (c) of Rule 17f-2, “Custody of Investments by Registered Management Investment Companies,” of the Investment Company Act of 1940. We are also responsible for establishing and maintaining effective internal controls over compliance with those requirements. We have performed an evaluation of the Funds’ compliance with the requirements of subsection (b) of Rule 17f-2, as interpreted in Franklin Investors Securities Trust SEC No-Action Letter (publicly available September 24, 1992), and subsection (c) of Rule 17f-2 of the Investment Company Act of 1940, as of October 31, 2007, and for the period indicated in Attachment I.
 
Based on this evaluation, we assert that the Funds were in compliance with the requirements of subsection (b) of Rule 17f-2, as interpreted in Franklin Investors Securities Trust SEC No-Action Letter (publicly available September 24, 1992), and subsection (c) of Rule 17f-2 of the Investment Company Act of 1940, as of
October 31, 2007, and for the period indicated in Attachment I, with respect to securities reflected in the investment accounts of the Funds.
 
 
 
By:
 
 /s/ Galen G. Vetter
___________________________________

Galen G. Vetter                                             

Chief Financial Officer

1/23/2008

___________________________________

Date

/s/ Jimmy D. Gambill

___________________________________

Jimmy D. Gambill

Senior Vice President and Chief Executive
Officer-Finance and Administration
 
 
1/23/2008
__________________________________

Date


Attachment I

Fund                                                    Period

Franklin Templeton Limited Duration Income Trust

 

July 1, 2007 - October 31, 2007

       

Templeton Russia and East European Fund, Inc.

 

July 1, 2007 - October 31, 2007

       

Franklin Real Estate Securities Trust:

   
 

Franklin Real Estate Securities Fund

 

July 1, 2007 - October 31, 2007

       

Franklin Strategic Series:

   
 

Franklin Aggressive Growth Opportunities Fund*

 

July 1, 2007 - October 31, 2007

 

Franklin Biotechnology Discovery Fund

 

July 1, 2007 - October 31, 2007

 

Franklin Flex Cap Growth Fund

 

July 1, 2007 - October 31, 2007

 

Franklin Global Communications Fund

 

July 1, 2007 - October 31, 2007

 

Franklin Global Health Care Fund

 

July 1, 2007 - October 31, 2007

 

Franklin Natural Resources Fund

 

July 1, 2007 - October 31, 2007

 

Franklin Small Cap Growth Fund II

 

July 1, 2007 - October 31, 2007

 

Franklin Small-Mid Cap Growth Fund

 

July 1, 2007 - October 31, 2007

 

Franklin Strategic Income Fund

 

July 1, 2007 - October 31, 2007

 

Franklin Technology Fund

 

July 1, 2007 - October 31, 2007

       

Franklin High Income Trust:

   
 

Franklin High Income Fund

 

July 1, 2007 - October 31, 2007

       

Franklin Capital Growth Fund

 

July 1, 2007 - October 31, 2007

       

Franklin Money Fund

 

July 1, 2007 - October 31, 2007

       

Franklin Templeton Money Fund Trust:

   
 

Franklin Templeton Money Fund

 

July 1, 2007 - October 31, 2007

       

Institutional Fiduciary Trust:

   
 

Franklin Cash Reserves Fund

 

July 1, 2007 - October 31, 2007

 

Money Market Portfolio

 

July 1, 2007 - October 31, 2007

       

Franklin Global Trust:

   
 

Fiduciary Large Capitalization Growth and Income Fund

 

July 1, 2007 - October 31, 2007

 

Fiduciary Small Capitalization Equity fund

 

July 1, 2007 - October 31, 2007

 

Franklin Templeton Core Fixed Income Fund

 

July 1, 2007 - October 31, 2007

 

Franklin Templeton Core Plus Fixed Income Fund

 

July 1, 2007 - October 31, 2007

 

Franklin Templeton Emerging Market Debt Opportunities Fund

 

July 1, 2007 - October 31, 2007

 

Franklin Templeton High Income Fund

 

July 1, 2007 - October 31, 2007

       

Franklin Gold and Precious Metals Fund

 

July 1, 2007 - October 31, 2007

       

Franklin Universal Trust

 

July 1, 2007 - October 31, 2007

       

Templeton Emerging Markets Fund

 

July 1, 2007 - October 31, 2007

       

Templeton Emerging Markets Income Fund

 

July 1, 2007 - October 31, 2007

       

Templeton Global Investment Trust:

   
 

Templeton Income Fund

 

July 1, 2007 - October 31, 2007

       

Templeton Global Income Fund

 

July 1, 2007 - October 31, 2007

       

Franklin Custodian Funds, Inc.:

   
 

Franklin DynaTech Fund

 

July 1, 2007 - October 31, 2007

 

Franklin Growth Fund

 

July 1, 2007 - October 31, 2007

 

Franklin Income Fund

 

July 1, 2007 - October 31, 2007

 

Franklin U.S. Government Securities Fund

 

July 1, 2007 - October 31, 2007

 

Franklin Utilities Fund

 

July 1, 2007 - October 31, 2007

       

Franklin Strategic Mortgage Portfolio

 

July 1, 2007 - October 31, 2007

       

Franklin Investors Securities Trust:

   
 

Franklin Adjustable U.S. Government Securities Fund

 

July 1, 2007 - October 31, 2007

 

Franklin Balanced Fund

 

July 1, 2007 - October 31, 2007

 

Franklin Convertible Securities Fund

 

July 1, 2007 - October 31, 2007

 

Franklin Equity Income Fund

 

July 1, 2007 - October 31, 2007

 

Franklin Floating Rate Daily Access Fund

 

July 1, 2007 - October 31, 2007

 

Franklin Limited Maturity U.S. Government Securities Fund

 

July 1, 2007 - October 31, 2007

 

Franklin Low Duration Total Return Fund

 

July 1, 2007 - October 31, 2007

 

Franklin Total Return Fund

 

July 1, 2007 - October 31, 2007

       

Franklin Value Investors Trust:

   
 

Franklin All Cap Value Fund

 

July 1, 2007 - October 31, 2007

 

Franklin Balance Sheet Investment Fund

 

July 1, 2007 - October 31, 2007

 

Franklin Large Cap Value Fund

 

July 1, 2007 - October 31, 2007

 

Franklin MicroCap Value Fund

 

July 1, 2007 - October 31, 2007

 

Franklin MidCap Value Fund

 

July 1, 2007 - October 31, 2007

 

Franklin Small Cap Value Fund

 

July 1, 2007 - October 31, 2007

       

Franklin Templeton Fund Allocator Series:

   
 

Franklin Templeton 2015 Retirement Target Fund

 

July 1, 2007 - October 31, 2007

 

Franklin Templeton 2025 Retirement Target Fund

 

July 1, 2007 - October 31, 2007

 

Franklin Templeton 2035 Retirement Target Fund

 

July 1, 2007 - October 31, 2007

 

Franklin Templeton 2045 Retirement Target Fund

 

July 1, 2007 - October 31, 2007

 

Franklin Templeton Conservative Target Fund

 

July 1, 2007 - October 31, 2007

 

Franklin Templeton Corefolio Allocation Fund

 

July 1, 2007 - October 31, 2007

 

Franklin Templeton Founding Funds Allocation Fund

 

July 1, 2007 - October 31, 2007

 

Franklin Templeton Growth Target Fund

 

July 1, 2007 - October 31, 2007

 

Franklin Templeton Moderate Target Fund

 

July 1, 2007 - October 31, 2007

 

Franklin Templeton Perspectives Allocation Fund

 

July 1, 2007 - October 31, 2007

       

Franklin Templeton Variable Insurance Products Trust:

   
 

Franklin Flex Cap Growth Securities Fund

 

July 1, 2007 - October 31, 2007

 

Franklin Founding Funds Allocation Fund**

 

July 2, 2007 - October 31, 2007

 

Franklin Large Cap Value Securities Fund

 

July 1, 2007 - October 31, 2007

 

Franklin Rising Dividends Securities Fund

 

July 1, 2007 - October 31, 2007

 

Franklin Small Cap Value Securities Fund

 

July 1, 2007 - October 31, 2007

 

Franklin Small-Mid Cap Growth Securities Fund

 

July 1, 2007 - October 31, 2007

 

Franklin Strategic Income Securities Fund

 

July 1, 2007 - October 31, 2007

 

Templeton Foreign Securities Fund

 

July 1, 2007 - October 31, 2007

 

Templeton Global Asset Allocation Fund

 

July 1, 2007 - October 31, 2007

       

Templeton Dragon Fund, Inc.

 

July 1, 2007 - October 31, 2007

       

Templeton Institutional Funds, Inc.:

   
 

Foreign Equity Series

 

July 1, 2007 - October 31, 2007

* Fund changed name to Franklin Growth Opportunities on November 1, 2007

** Commencement of Operations