N-CSRS 1 primary-document.htm
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, DC 20549
 
FORM N-CSRS
 
CERTIFIED SHAREHOLDER REPORT OF REGISTERED MANAGEMENT INVESTMENT COMPANIES
 
Investment Company Act file number 811-06378
 
Templeton Developing Markets Trust

(Exact name of registrant as specified in charter)
 
300 S.E. 2nd Street
, Fort Lauderdale, FL 33301-1923
(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
 
Date of fiscal year end: 12/31
 
Date of reporting period:  6/30/21
 
Item 1. Reports to Stockholders.
 
a.)
 
The following is a copy of the report transmitted to shareholders pursuant to Rule30e-1 under the Investment Company Act of 1940, as amended (the “1940 Act”) (17 CFR 270.30e-1.)


b.)
 
Include a copy of each notice transmitted to stockholders in reliance on Rule 30e-3 under the Act (17 CFR 270.30e-3) that contains disclosures specified by paragraph (c)(3) of that rule.
Not Applicable
.
 
SEMIANNUAL
REPORT
AND
SHAREHOLDER
LETTER
Templeton
Developing
Markets
Trust
June
30,
2021
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report
1
SHAREHOLDER
LETTER
Dear
Shareholder:
Emerging
market
equities
have
continued
their
ascent
so
far
in
2021,
though
the
pace
has
moderated
from
the
momentum
of
2020.
Emerging
markets
in
general
have
shown
sustained
resilience
in
managing
and
adapting
to
COVID-19.
What
is
worth
noting,
however,
is
a
growing
divergence
between
the
perceived
challenges
surrounding
these
markets
and
their
demonstrated
structural
strengths.
As
the
rest
of
2021
comes
into
sharper
focus,
we
highlight
three
key
areas
that
warrant
attention—demand,
sentiment
and
inflation.
Our
meetings
with
companies
across
a
wide
range
of
industries
in
emerging
markets
have
delivered
a
consistent
message—demand
remains
robust,
and
the
long-term
growth
drivers
are
clear.
This
has
been
the
case
even
in
countries
that
generated
some
of
the
worst
COVID-19
headlines
in
recent
months,
such
as
India
and
Brazil.
The
healthy
demand
picture
we
have
seen
on
the
ground
contrasts
with
the
soft
sentiment
that
has
surrounded
emerging
markets
amid
new
COVID-19
outbreaks,
slow
vaccination
progress
and
other
country-specific
concerns.
We
expect
this
backdrop
to
set
emerging
market
economies
up
for
potentially
better
performance
ahead
as
vaccination
rates
and
COVID-19
trends
improve.
Inflation
concerns
in
the
U.S.
have
resurfaced
as
a
stimulus-
fueled
global
economy
springs
back
from
the
depths
of
the
pandemic.
Even
as
we
stay
true
to
our
bottom-up
and
stock-driven
investment
approach,
we
remain
vigilant
about
possible
macroeconomic
headwinds.
As
a
whole,
emerging
market
economic
fundamentals
have
improved
in
the
past
decade,
and
we
believe
emerging
markets
are
in
a
stronger
position
today
to
cope
with
any
market
volatility.
Our
overall
outlook
for
emerging
markets
remains
positive
as
they
continue
to
chart
a
path
out
of
the
pandemic,
though
some
risks
may
impact
our
medium-term
view.
That
said,
short-term
challenges
could
create
longer-
term
investment
opportunities,
underpinned
by
emerging
markets’
structural
strengths
and
the
competitiveness
of
their
companies.
We
are
committed
to
our
long-term
perspective
and
disciplined
investment
approach
as
we
conduct
a
rigorous,
fundamental
analysis
of
securities
with
a
regular
emphasis
on
investment
risk
management.
Historically,
patient
investors
have
achieved
rewarding
results
by
evaluating
their
goals,
diversifying
their
assets
globally
and
maintaining
a
disciplined
investment
program,
all
hallmarks
of
the
Templeton
investment
philosophy.
We
continue
to
recommend
investors
consult
financial
professionals
and
review
their
portfolios
to
design
a
long-term
strategy
and
portfolio
allocation
that
meet
their
individual
needs,
goals
and
risk
tolerance.
Templeton
Developing
Markets
Trust’s
semiannual
report
includes
more
detail
about
prevailing
conditions
and
a
discussion
about
investment
decisions
during
the
period.
Please
remember
all
securities
markets
fluctuate,
as
do
mutual
fund
share
prices.
We
thank
you
for
investing
with
Franklin
Templeton,
welcome
your
questions
and
comments,
and
look
forward
to
serving
your
investment
needs
in
the
years
ahead.
Sincerely,
Manraj
S.
Sekhon,
CFA
Chief
Investment
Officer
Franklin
Templeton
Emerging
Markets
Equity
This
letter
reflects
our
analysis
and
opinions
as
of
June
30,
2021,
unless
otherwise
indicated.
The
information
is
not
a
complete
analysis
of
every
aspect
of
any
market,
country,
industry,
security
or
fund.
Statements
of
fact
are
from
sources
considered
reliable.
CFA
®
is
a
trademark
owned
by
CFA
Institute.
franklintempleton.com
Semiannual
Report
2
Contents
Semiannual
Report
Templeton
Developing
Markets
Trust
3
Performance
Summary
7
Your
Fund’s
Expenses
9
Financial
Highlights
and
Statement
of
Investments
10
Financial
Statements
19
Notes
to
Financial
Statements
23
Shareholder
Information
34
Visit
franklintempleton.com
for
fund
updates,
to
access
your
account,
or
to
find
helpful
financial
planning
tools.
3
franklintempleton.com
Semiannual
Report
SEMI
ANNUAL
REPORT
Templeton
Developing
Markets
Trust
This
semi
annual
report
for
Templeton
Developing
Markets
Trust
covers
the
period
ended
June
30,
2021.
Your
Fund’s
Goal
and
Main
Investments
The
Fund
seeks
long-term
capital
appreciation.
Under
normal
market
conditions,
the
Fund
invests
at
least
80%
of
its
net
assets
in
securities
of
companies
located
or
operating
in
“developing
market
countries,”
as
defined
in
the
Fund’s
prospectus.
Performance
Overview
The
Fund’s
Class
A
shares
posted
a
+7.71%
cumulative
total
return
for
the
six
months
under
review.
In
comparison,
the
Fund’s
new
benchmark,
the
MSCI
Emerging
Markets
(EM)
Index-NR,
which
measures
global
emerging
market
stock
performance,
posted
a
+7.45%
cumulative
total
return
for
the
same
period.
1
The
Fund’s
old
benchmark,
the
MSCI
EM
Index,
posted
a
+7.58
cumulative
total
return.
1
The
investment
manager
believes
the
MSCI
EM
Index-NR
provides
a
more
consistent
basis
for
comparison
relative
to
the
Fund’s
peers.
Please
note,
index
performance
is
provided
for
reference
and
we
do
not
attempt
to
track
an
index
but
rather
undertake
investments
on
the
basis
of
fundamental
research.
In
addition,
the
Fund’s
return
reflects
the
effect
of
fees
and
expenses
for
professional
management,
while
an
index
does
not
have
such
costs.
You
can
find
the
Fund’s
long-term
performance
data
in
the
Performance
Summary
beginning
on
page
7
.
Performance
data
represent
past
performance,
which
does
not
guarantee
future
results.
Investment
return
and
principal
value
will
fluctuate,
and
you
may
have
a
gain
or
loss
when
you
sell
your
shares.
Current
performance
may
differ
from
figures
shown.
For
most
recent
month-end
performance,
go
to
franklintempleton.com
or
call
(800)
342-5236
.
Economic
and
Market
Overview
Emerging
market
economies
continued
to
recover
from
the
worst
effects
of
the
novel
coronavirus
(COVID-19)
pandemic
during
the
six
months
ended
June
30,
2021,
though
renewed
outbreaks
limited
growth
in
some
countries.
After
adopting
more
accommodative
monetary
policies
in
2020,
many
emerging
market
central
banks
held
or
raised
their
interest
rates
during
the
period
in
response
to
increased
inflation.
Emerging
market
equities
rose
modestly
during
the
six-month
period
and
lagged
behind
developed
market
stocks.
Optimism
about
vaccine
rollouts,
economic
reopenings
and
additional
U.S.
fiscal
stimulus
measures
was
counterbalanced
by
concerns
over
renewed
COVID-19
outbreaks,
rising
inflation
and
signs
the
U.S.
Federal
Reserve
could
tighten
monetary
policy
sooner
than
expected.
Regarding
individual
countries,
China’s
year-on-year
growth
rate
accelerated
in
2021’s
first
quarter,
driven
by
increased
domestic
and
global
demand
and
government
fiscal
support.
Growth
was
less
robust
in
2021’s
second
quarter
as
higher
commodity
prices
hindered
economic
growth.
Taiwan’s
year-on-year
growth
rate
accelerated
in
2021’s
first
quarter,
as
a
surge
in
global
demand
for
electronic
and
audio-video
products
boosted
its
export-dependent
economy.
A
rebound
in
domestic
consumer
spending
and
continued
government
spending
also
supported
growth.
South
Korea’s
year-on-year
growth
rate
turned
positive
in
2021’s
first
quarter
following
three
straight
quarters
of
contraction.
Accelerating
private
consumption
and
gross
fixed
capital
formation,
as
well
as
continued
growth
in
government
spending,
contributed
to
the
recovery.
India’s
year-on-year
growth
rate
accelerated
in
Geographic
Composition
6/30/21
%
of
Total
Net
Assets
Asia
76.3%
Latin
America
&
Caribbean
9.1%
Europe
8.4%
Middle East & Africa
4.3%
Other
0.6%
Short-Term
Investments
&
Other
Net
Assets
1.3%
1.
Source:
Morningstar.
The
index
is
unmanaged
and
includes
reinvestment
of
any
income
or
distributions.
It
does
not
reflect
any
fees,
expenses
or
sales
charges.
One
cannot
invest
directly
in
an
index,
and
an
index
is
not
representative
of
the
Fund’s
portfolio.
Net
Returns
(NR)
include
income
net
of
tax
withholding
when
dividends
are
paid.
See
www.franklintempletondatasources.com
for
additional
data
provider
information.
The
dollar
value,
number
of
shares
or
principal
amount,
and
names
of
all
portfolio
holdings
are
listed
in
the
Fund’s
Statement
of
Investments
(SOI).
The
SOI
begins
on
page
15
.
Templeton
Developing
Markets
Trust
4
franklintempleton.com
Semiannual
Report
2021’s
first
quarter,
the
country’s
second
straight
quarter
of
growth.
Private
and
government
spending
rebounded
and
gross
fixed
capital
formation
accelerated.
Russia’s
year-on-
year
growth
rate
contracted
in
2021’s
first
quarter
for
the
fourth
straight
quarter,
albeit
at
a
slower
rate
due
to
growth
in
industrial
output
and
wholesale
trade.
Brazil’s
year-on-year
growth
rate
turned
positive
in
2021’s
first
quarter
following
four
straight
quarters
of
contractions,
aided
by
accelerations
in
manufacturing,
transportation
and
storage,
and
finance
and
insurance.
Turning
to
specific
countries’
monetary
policies,
the
People’s
Bank
of
China
left
its
benchmark
loan
prime
rate
unchanged
during
the
period.
Taiwan’s
and
South
Korea’s
central
banks
held
their
record
low
benchmark
interest
rates
steady
during
the
period.
India’s
central
bank
also
left
its
benchmark
rate
unchanged.
In
contrast,
the
central
banks
of
Russia
and
Brazil
raised
their
respective
benchmark
interest
rates
three
times
during
the
period.
In
this
environment,
emerging
market
stocks,
as
measured
by
the
MSCI
EM
Index-NR,
posted
a
+7.45%
total
return
for
the
six
months
ended
June
30,
2021.
1
Chinese
equities
rose
only
slightly
during
the
period,
despite
the
country’s
continued
economic
recovery.
Gains
were
limited
by
concerns
over
increased
regulations
of
internet-related
companies,
U.S.-China
political
tensions
and
monetary
policy
concerns.
Equities
in
Taiwan
rose
significantly
during
the
period,
benefiting
from
strong
exports
by
its
technology-
related
companies.
Russian
equities
rose
as
well,
outpacing
most
emerging
market
peers,
boosted
by
higher
oil
prices
and
easing
geopolitical
tensions
with
the
U.S.
Brazilian
equities
also
gained
during
the
period.
Better-than-expected
economic
data
and
improved
vaccination
trends
in
2021’s
second
quarter
boosted
stocks
and
helped
offset
losses
early
in
the
period
due
to
concerns
about
increased
COVID-19
infections,
the
country’s
debt
level
and
rising
inflation.
Investment
Strategy
We
employ
a
fundamental
research,
value-oriented,
long-
term
investment
strategy.
We
focus
on
the
market
price
of
a
company’s
securities
relative
to
our
evaluation
of
its
long-term
earnings,
asset
value,
cash
flow
potential
and
sustainable
earnings
power
at
a
discount
to
intrinsic
worth.
This
includes
an
assessment
of
the
potential
impacts
of
material
environmental,
social
and
governance
factors
on
the
long-term
risk
and
return
profile
of
a
company.
We
also
consider
a
company’s
profit
and
loss
outlook,
balance
sheet
strength,
cash
flow
trends
and
asset
value
in
relation
to
the
current
price
of
the
company’s
securities.
Our
analysis
considers
the
company’s
position
in
its
sector,
the
economic
framework
and
political
environment.
Manager’s
Discussion
Key
contributors
to
absolute
performance
during
the
period
were
Taiwan
Semiconductor
Manufacturing
Co.
(TSMC),
NAVER
and
MediaTek.
TSMC
is
one
of
the
world’s
leading
semiconductor
manufacturers,
with
major
technology
companies
among
its
clients.
The
company’s
stock
price
surged
as
investors
lifted
their
longer-term
outlook
for
the
chipmaker
in
a
robust
environment
for
technology
exports,
driven
by
increased
consumer
demand
for
computers,
game
consoles,
smartphones
and
tablets
during
the
pandemic.
Strong
demand
for
its
leading-edge
chips
coupled
with
production
setbacks
for
a
key
competitor
underpinned
the
optimism.
TSMC’s
better-than-expected
fourth-quarter
2020
profit,
upgraded
sales
growth
forecasts
and
increased
capital
spending
targets
sent
the
stock
soaring
in
January
2021,
before
signs
of
increased
industry
competition
erased
some
gains.
Investors
also
weighed
strong
first-quarter
2021
results
from
the
chipmaker
against
mixed
guidance,
which
projected
weaker
second-quarter
margins
while
upgrading
its
full-year
revenue
growth
forecast.
NAVER
is
South
Korea’s
largest
search
engine.
The
company
also
provides
services
including
LINE,
a
messenger
app
that
merged
with
SoftBank
subsidiary
Yahoo
Japan
(not
a
Fund
holding).
NAVER
benefited
from
increased
online
shopping
on
its
platform
amid
the
COVID-19
pandemic.
Moreover,
investors
remained
confident
of
NAVER’s
penetration
into
e-commerce,
digital
content
and
financial
services,
and
looked
positively
upon
its
substantial
research
and
development
investment.
NAVER
Top
10
Countries
6/30/21
a
%
of
Total
Net
Assets
a
a
China
28.5%
South
Korea
22.4%
Taiwan
16.4%
Brazil
7.4%
India
6.5%
Russia
6.4%
South
Africa
4.3%
Mexico
1.5%
United
Kingdom
1.4%
Thailand
1.2%
Templeton
Developing
Markets
Trust
5
franklintempleton.com
Semiannual
Report
continued
to
report
strong
quarterly
revenues
and
earnings,
supporting
its
upward
share-price
trend.
Solid
e-commerce
trends,
expectations
of
a
recovery
in
the
advertising
market,
monetization,
increased
synergies
and
potential
new
investments
further
supported
market
confidence
in
the
company.
MediaTek
is
a
major
Taiwanese
chip
designer
in
the
semiconductor
industry
and
develops
chips
for
smartphones
and
other
technology
devices.
Shares
reached
a
record
high
in
April
2021,
following
the
release
of
above-consensus
first-quarter
earnings
and
profit
margins
and
management
guidance
for
the
company’s
second-quarter
growth
outlook.
Supply
constraints
also
raised
expectations
that
MediaTek
could
gain
market
share
in
the
fifth-generation
wireless
technology
(5G)
smartphone
business
from
its
competitors.
Signaling
commitment
to
enhancing
shareholder
returns,
the
company’s
announcement
of
a
special
dividend
payment
from
2021-2024
was
viewed
positively
by
the
market.
In
contrast,
key
detractors
from
absolute
performance
included
Brilliance
China
Automotive
Holdings,
Alibaba
Group
Holding
and
Ping
An
Insurance
Group.
Brilliance
China
Automotive
is
a
Chinese
carmaker
noted
for
its
joint
venture
with
German
luxury
carmaker
BMW
(not
a
Fund
holding).
The
company’s
stock
has
been
suspended
from
trading
since
March
31,
2021,
due
to
a
delay
in
the
company’s
2020
corporate
results,
along
with
the
provision
of
unauthorized
bank
guarantees
and
cash
balance
issues.
We
have
applied
a
fair
valuation
discount
on
the
holding,
and
we
continue
to
monitor
the
situation
closely.
Operationally,
its
joint
venture
with
BMW
continues
to
report
strong
earnings.
Alibaba
is
the
leading
e-commerce
company
in
China.
It
also
provides
cloud
computing
services
and
is
also
involved
in
payment,
financing
and
logistics
services.
Shares
fell
as
regulators
stepped
up
their
scrutiny
of
the
internet
industry
through
a
series
of
actions,
including
the
release
of
draft
online
microlending
and
anti-monopoly
rules.
Confidence
in
Alibaba
was
also
impacted
following
the
suspension
of
plans
to
list
its
financial
technology
arm
in
December
2020,
as
well
as
an
antitrust
probe
into
its
merchant
policy.
Although
Alibaba
reported
above-consensus
first-quarter
2021
revenues,
net
income
disappointed
due
to
higher
expenses
and
the
payment
of
an
anti-monopoly
fine
levied
against
the
company.
Ping
An
Insurance
is
a
leading
financial
conglomerate
involved
in
insurance,
banking,
brokerage,
trust
and
other
financial
service
businesses.
The
company
is
among
China’s
largest
life
and
property
and
casualty
insurers,
in
terms
of
premiums.
Increased
uncertainties
surrounding
the
company’s
investment
in
an
insolvent
state-controlled
conglomerate
with
interests
in
health
care,
finance,
information
technology
and
education
further
pressured
share-price
returns.
In
the
last
six
months,
the
Fund
increased
its
holdings
in
China,
Brazil
and
South
Korea
as
we
continued
to
identify
companies
with
sustainable
earnings
power
trading
at
a
discount
to
their
intrinsic
worth.
In
terms
of
sectors,
additions
were
undertaken
in
materials,
consumer
discretionary
and
real
estate.
New
additions
to
the
portfolio
included
Daqo
New
Energy,
a
Chinese
manufacturer
of
polysilicon
for
solar
power
equipment,
Soulbrain,
a
major
South
Korean
supplier
of
key
chemicals
for
semiconductor
and
display
manufacturing,
and
Guangzhou
Tinci
Materials
Technology,
a
leading
Chinese
supplier
of
battery
electrolytes.
We
also
added
to
our
existing
high-conviction
portfolio
holdings
with
purchases
in
Tencent
Holdings,
one
of
the
largest
internet
services
companies
in
China,
the
aforementioned
Alibaba
and
Brazilian
stock
exchange
B3,
one
of
the
largest
financial
exchanges
in
South
America.
The
Fund
reduced
its
investments
in
Taiwan,
Thailand
and
U.S.-
and
U.K.-listed
companies
with
exposure
to
emerging
markets
in
favor
of
opportunities
we
found
more
compelling.
Sectors
which
experienced
the
largest
sales
were
communication
services,
energy
and
consumer
staples.
In
terms
of
key
sales,
we
closed
positions
in
Prosus,
the
international
internet
assets
spinoff
of
South
African
internet
and
media
group
Naspers
(also
a
Fund
holding),
Top
10
Holdings
6/30/21
Company
Industry
,
Country
%
of
Total
Net
Assets
a
a
Taiwan
Semiconductor
Manufacturing
Co.
Ltd.
12.3%
Semiconductors
&
Semiconductor
Equipment,
Taiwan
Samsung
Electronics
Co.
Ltd.
10.7%
Technology
Hardware,
Storage
&
Peripherals,
South
Korea
Alibaba
Group
Holding
Ltd.
8.4%
Internet
&
Direct
Marketing
Retail,
China
Tencent
Holdings
Ltd.
8.1%
Interactive
Media
&
Services,
China
NAVER
Corp.
4.4%
Interactive
Media
&
Services,
South
Korea
ICICI
Bank
Ltd.
3.7%
Banks,
India
Naspers
Ltd.
3.4%
Internet
&
Direct
Marketing
Retail,
South
Africa
MediaTek
,
Inc.
2.8%
Semiconductors
&
Semiconductor
Equipment,
Taiwan
LG
Corp.
2.3%
Industrial
Conglomerates,
South
Korea
China
Merchants
Bank
Co.
Ltd.
2.1%
Banks,
China
Templeton
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Markets
Trust
6
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CNOOC,
a
Chinese
energy
company,
and
China
Mobile,
a
Chinese
wireless
telecommunications
provider.
We
also
reduced
positions
in
several
key
holdings,
including
Unilever,
a
U.K.-based
global
consumer
goods
giant
that
generates
more
than
half
of
its
sales
in
emerging
markets,
Cognizant
Technology
Solutions,
a
U.S.-listed
technology
services
provider
that
derives
most
of
its
earnings
from
services
produced
in
India,
and
the
aforementioned
NAVER.
We
thank
you
for
your
continued
participation
in
Templeton
Developing
Markets
Trust
and
look
forward
to
serving
your
future
investment
needs.
Chetan
Sehgal,
CFA
Andrew
Ness,
CFA
Portfolio
Management
Team
The
foregoing
information
reflects
our
analysis,
opinions
and
portfolio
holdings
as
of
June
30,
2021,
the
end
of
the
reporting
period.
The
way
we
implement
our
main
investment
strategies
and
the
resulting
portfolio
holdings
may
change
depending
on
factors
such
as
market
and
economic
conditions.
These
opinions
may
not
be
relied
upon
as
investment
advice
or
an
offer
for
a
particular
security.
The
information
is
not
a
complete
analysis
of
every
aspect
of
any
market,
country,
industry,
security
or
the
Fund.
Statements
of
fact
are
from
sources
considered
reliable,
but
the
investment
manager
makes
no
representation
or
warranty
as
to
their
completeness
or
accuracy.
Although
historical
performance
is
no
guarantee
of
future
results,
these
insights
may
help
you
understand
our
investment
management
philosophy.
Performance
Summary
as
of
June
30,
2021
Templeton
Developing
Markets
Trust
7
franklintempleton.com
Semiannual
Report
The
performance
table
does
not
reflect
any
taxes
that
a
shareholder
would
pay
on
Fund
dividends,
capital
gain
distributions,
if
any,
or
any
realized
gains
on
the
sale
of
Fund
shares.
Total
return
reflects
reinvestment
of
the
Fund’s
dividends
and
capital
gain
distributions,
if
any,
and
any
unrealized
gains
or
losses.
Your
dividend
income
will
vary
depending
on
dividends
or
interest
paid
by
securities
in
the
Fund’s
portfolio,
adjusted
for
operating
expenses
of
each
class.
Capital
gain
distributions
are
net
profits
realized
from
the
sale
of
portfolio
securities.
Performance
as
of
6
/3
0
/2
1
1
Cumulative
total
return
excludes
sales
charges.
Average
annual
total
return
includes
maximum
sales
charges.
Sales
charges
will
vary
depending
on
the
size
of
the
investment
and
the
class
of
share
purchased.
The
maximum
is
5.50%
and
the
minimum
is
0%.
Class
A:
5.50%
maximum
initial
sales
charge;
Advisor
Class:
no
sales
charges.
For
other
share
classes,
visit
franklintempleton.com.
Performance
data
represent
past
performance,
which
does
not
guarantee
future
results.
Investment
return
and
principal
value
will
fluctuate,
and
you
may
have
a
gain
or
loss
when
you
sell
your
shares.
Current
performance
may
differ
from
figures
shown.
For
most
recent
month-end
performance,
go
to
franklintempleton.com
or
call
(800)
342-5236
.
Share
Class
Cumulative
Total
Return
2
Average
Annual
Total
Return
3
–
A
4
6-Month
+7.71%
+1.78%
1-Year
+42.13%
+34.31%
5-Year
+102.11%
+13.81%
10-Year
+53.45%
+3.79%
Advisor
6-Month
+7.84%
+7.84%
1-Year
+42.51%
+42.51%
5-Year
+104.76%
+15.41%
10-Year
+57.51%
+4.65%
See
page
8
for
Performance
Summary
footnotes.
Templeton
Developing
Markets
Trust
Performance
Summary
8
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Each
class
of
shares
is
available
to
certain
eligible
investors
and
has
different
annual
fees
and
expenses,
as
described
in
the
prospectus.
All
investments
involve
risks,
including
possible
loss
of
principal.
Special
risks
are
associated
with
foreign
investing,
including
currency
fluctuations,
economic
instability
and
political
developments.
Investments
in
developing
markets,
of
which
frontier
markets
are
a
subset,
involve
heightened
risks
related
to
the
same
factors,
in
addition
to
those
associated
with
these
markets’
smaller
size,
lesser
liquidity
and
lack
of
established
legal,
political,
business
and
social
frameworks
to
support
securities
markets.
Because
these
frameworks
are
typically
even
less
developed
in
frontier
markets,
as
well
as
various
factors
including
the
increased
potential
for
extreme
price
volatility,
illiquidity,
trade
barriers
and
exchange
controls,
the
risks
associated
with
developing
markets
are
magnified
in
frontier
markets.
The
Fund
is
designed
for
the
aggressive
portion
of
a
well-diversified
portfolio.
Events
such
as
the
spread
of
deadly
diseases,
disasters,
and
financial,
political
or
social
disruptions,
may
heighten
risks
and
adversely
affect
performance.
The
Fund’s
prospectus
also
includes
a
description
of
the
main
investment
risks.
1.
The
Fund
has
an
expense
reduction
contractually
guaranteed
through
4/30/22.
Fund
investment
results
reflect
the
expense
reduction;
without
this
reduction,
the
results
would
have
been
lower.
2.
Cumulative
total
return
represents
the
change
in
value
of
an
investment
over
the
periods
indicated.
3.
Average
annual
total
return
represents
the
average
annual
change
in
value
of
an
investment
over
the
periods
indicated.
Return
for
less
than
one
year,
if
any,
has
not
been
annualized.
4.
Prior
to
9/10/18,
these
shares
were
offered
at
a
higher
initial
sales
charge
of
5.75%,
thus
actual
returns
(with
sales
charges)
would
have
differed.
Average
annual
total
returns
(with
sales
charges)
have
been
restated
to
reflect
the
current
maximum
initial
sales
charge
of
5.50%.
5.
Figures
are
as
stated
in
the
Fund’s
current
prospectus
and
may
differ
from
the
expense
ratios
disclosed
in
the
Your
Fund’s
Expenses
and
Financial
Highlights
sections
in
this
report.
In
periods
of
market
volatility,
assets
may
decline
significantly,
causing
total
annual
Fund
operating
expenses
to
become
higher
than
the
figures
shown.
See
www.franklintempletondatasources.com
for
additional
data
provider
information.
Total
Annual
Operating
Expenses
5
Share
Class
With
Fee
Waiver
Without
Fee
Waiver
A
1.38%
1.52%
Advisor
1.13%
1.27%
Your
Fund’s
Expenses
Templeton
Developing
Markets
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9
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Report
As
a
Fund
shareholder,
you
can
incur
two
types
of
costs:
(1)
transaction
costs,
including
sales
charges
(loads)
on
Fund
purchases
and
redemptions;
and
(2)
ongoing
Fund
costs,
including
management
fees,
distribution
and
service
(12b-1)
fees,
and
other
Fund
expenses.
All
mutual
funds
have
ongoing
costs,
sometimes
referred
to
as
operating
expenses.
The
table
below
shows
ongoing
costs
of
investing
in
the
Fund
and
can
help
you
understand
these
costs
and
compare
them
with
those
of
other
mutual
funds.
The
table
assumes
a
$1,000
investment
held
for
the
six
months
indicated.
Actual
Fund
Expenses
The
table
below
provides
information
about
actual
account
values
and
actual
expenses
in
the
columns
under
the
heading
“Actual.”
In
these
columns
the
Fund’s
actual
return,
which
includes
the
effect
of
Fund
expenses,
is
used
to
calculate
the
“Ending
Account
Value”
for
each
class
of
shares.
You
can
estimate
the
expenses
you
paid
during
the
period
by
following
these
steps
(
of
course,
your
account
value
and
expenses
will
differ
from
those
in
this
illustration
):
Divide
your
account
value
by
$1,000
(
if
your
account
had
an
$8,600
value,
then
$8,600
÷
$1,000
=
8.6
).
Then
multiply
the
result
by
the
number
in
the
row
for
your
class
of
shares
under
the
headings
“Actual”
and
“Expenses
Paid
During
Period”
(
if
Actual
Expenses
Paid
During
Period
were
$7.50,
then
8.6
x
$7.50
=
$64.50
).
In
this
illustration,
the
actual
expenses
paid
this
period
are
$64.50.
Hypothetical
Example
for
Comparison
with
Other
Funds
Under
the
heading
“Hypothetical”
in
the
table,
information
is
provided
about
hypothetical
account
values
and
hypothetical
expenses
based
on
the
Fund’s
actual
expense
ratio
and
an
assumed
rate
of
return
of
5%
per
year
before
expenses,
which
is
not
the
Fund’s
actual
return.
This
information
may
not
be
used
to
estimate
the
actual
ending
account
balance
or
expenses
you
paid
for
the
period,
but
it
can
help
you
compare
ongoing
costs
of
investing
in
the
Fund
with
those
of
other
funds.
To
do
so,
compare
this
5%
hypothetical
example
for
the
class
of
shares
you
hold
with
the
5%
hypothetical
examples
that
appear
in
the
shareholder
reports
of
other
funds.
Please
note
that
expenses
shown
in
the
table
are
meant
to
highlight
ongoing
costs
and
do
not
reflect
any
transactional
costs.
Therefore,
information
under
the
heading
“Hypothetical”
is
useful
in
comparing
ongoing
costs
only,
and
will
not
help
you
compare
total
costs
of
owning
different
funds.
In
addition,
if
transactional
costs
were
included,
your
total
costs
would
have
been
higher.
1.
Expenses
are
equal
to
the
annualized
expense
ratio
for
the
six-month
period
as
indicated
above—in
the
far
right
column—multiplied
by
the
simple
average
account
value
over
the
period
indicated,
and
then
multiplied
by
181/365
to
reflect
the
one-half
year
period.
2.
Reflects
expenses
after
fee
waivers
and
expense
reimbursements.
Does
not
include
acquired
fund
fees
and
expenses.
Actual
(actual
return
after
expenses)
Hypothetical
(5%
annual
return
before
expenses)
Share
Class
Beginning
Account
Value
1/1/21
Ending
Account
Value
6/30/21
Expenses
Paid
During
Period
1/1/21–6/30/21
1,2
Ending
Account
Value
6/30/21
Expenses
Paid
During
Period
1/1/21–6/30/21
1,2
a
Net
Annualized
Expense
Ratio
2
A
$1,000
$1,077.10
$7.10
$1,017.96
$6.90
1.38%
C
$1,000
$1,072.90
$10.94
$1,014.24
$10.63
2.13%
R
$1,000
$1,075.70
$8.38
$1,016.72
$8.14
1.63%
R6
$1,000
$1,078.90
$5.15
$1,019.84
$5.00
1.00%
Advisor
$1,000
$1,078.40
$5.82
$1,019.20
$5.65
1.13%
Templeton
Developing
Markets
Trust
Financial
Highlights
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Report
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
10
a
Six
Months
Ended
June
30,
2021
(unaudited)
Year
Ended
December
31,
2020
2019
2018
2017
2016
Class
A
Per
share
operating
performance
(for
a
share
outstanding
throughout
the
period)
Net
asset
value,
beginning
of
period
.....
$25.42
$21.96
$18.17
$21.98
$15.82
$13.59
Income
from
investment
operations
a
:
Net
investment
income
b
.............
0.07
0.13
0.32
c
0.20
0.15
0.10
Net
realized
and
unrealized
gains
(losses)
1.89
3.94
4.46
(3.76)
6.21
2.32
Total
from
investment
operations
........
1.96
4.07
4.78
(3.56)
6.36
2.42
Less
distributions
from:
Net
investment
income
..............
—
(0.26)
(0.76)
(0.25)
(0.20)
(0.19)
Net
realized
gains
.................
—
(0.35)
(0.23)
—
—
—
Total
distributions
...................
—
(0.61)
(0.99)
(0.25)
(0.20)
(0.19)
Net
asset
value,
end
of
period
..........
$27.38
$25.42
$21.96
$18.17
$21.98
$15.82
Total
return
d
.......................
7.71%
18.67%
26.39%
(16.20)%
40.20%
17.84%
Ratios
to
average
net
assets
e
Expenses
before
waiver
and
payments
by
affiliates
..........................
1.51%
1.53%
1.52%
1.56%
1.73%
1.79%
Expenses
net
of
waiver
and
payments
by
affiliates
..........................
1.38%
1.38%
1.38%
1.34%
1.55%
f
1.58%
Net
investment
income
...............
0.50%
0.61%
1.57%
c
0.99%
0.76%
0.64%
Supplemental
data
Net
assets,
end
of
period
(000’s)
........
$1,205,502
$1,145,066
$1,067,300
$917,488
$1,178,838
$961,888
Portfolio
turnover
rate
................
10.97%
18.58%
17.71%
9.96%
8.89%
27.40%
f
Benefit
of
expense
reduction
rounds
to
less
than
0.01%.
a
The
amount
shown
for
a
share
outstanding
throughout
the
period
may
not
correlate
with
the
Statement
of
Operations
for
the
period
due
to
the
timing
of
sales
and
repurchases
of
the
Fund’s
shares
in
relation
to
income
earned
and/or
fluctuating
fair
value
of
the
investments
of
the
Fund.
b
Based
on
average
daily
shares
outstanding.
c
Net
investment
income
per
share
includes
approximately
$0.09
per
share
related
to
income
received
in
the
form
of
special
dividends
in
connection
with
certain
Fund
holdings.
Excluding
this
amount,
the
ratio
of
net
investment
income
to
average
net
assets
would
have
been
1.15%.
d
Total
return
does
not
reflect
sales
commissions
or
contingent
deferred
sales
charges,
if
applicable,
and
is
not
annualized
for
periods
less
than
one
year.
e
Ratios
are
annualized
for
periods
less
than
one
year.
Templeton
Developing
Markets
Trust
Financial
Highlights
franklintempleton.com
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
Semiannual
Report
11
a
Six
Months
Ended
June
30,
2021
(unaudited)
Year
Ended
December
31,
2020
2019
2018
2017
2016
Class
C
Per
share
operating
performance
(for
a
share
outstanding
throughout
the
period)
Net
asset
value,
beginning
of
period
.....
$24.83
$21.46
$17.75
$21.34
$15.38
$13.22
Income
from
investment
operations
a
:
Net
investment
income
(loss)
b
........
(0.03)
(0.03)
0.20
c
0.08
—
d
(0.02)
Net
realized
and
unrealized
gains
(losses)
1.84
3.82
4.32
(3.67)
6.01
2.26
Total
from
investment
operations
........
1.81
3.79
4.52
(3.59)
6.01
2.24
Less
distributions
from:
Net
investment
income
..............
—
(0.07)
(0.58)
—
(0.05)
(0.08)
Net
realized
gains
.................
—
(0.35)
(0.23)
—
—
—
Total
distributions
...................
—
(0.42)
(0.81)
—
(0.05)
(0.08)
Net
asset
value,
end
of
period
..........
$26.64
$24.83
$21.46
$17.75
$21.34
$15.38
Total
return
e
.......................
7.29%
17.79%
25.42%
(16.78)%
39.19%
16.90%
Ratios
to
average
net
assets
f
Expenses
before
waiver
and
payments
by
affiliates
..........................
2.26%
2.28%
2.27%
2.31%
2.48%
2.54%
Expenses
net
of
waiver
and
payments
by
affiliates
..........................
2.13%
2.13%
2.13%
2.09%
2.30%
g
2.33%
Net
investment
income
(loss)
..........
(0.26)%
(0.15)%
0.82%
c
0.24%
0.01%
(0.11)%
Supplemental
data
Net
assets,
end
of
period
(000’s)
........
$47,864
$48,429
$56,860
$63,116
$172,523
$141,100
Portfolio
turnover
rate
................
10.97%
18.58%
17.71%
9.96%
8.89%
27.40%
g
Benefit
of
expense
reduction
rounds
to
less
than
0.01%.
a
The
amount
shown
for
a
share
outstanding
throughout
the
period
may
not
correlate
with
the
Statement
of
Operations
for
the
period
due
to
the
timing
of
sales
and
repurchases
of
the
Fund’s
shares
in
relation
to
income
earned
and/or
fluctuating
fair
value
of
the
investments
of
the
Fund.
b
Based
on
average
daily
shares
outstanding.
c
Net
investment
income
per
share
includes
approximately
$0.09
per
share
related
to
income
received
in
the
form
of
special
dividends
in
connection
with
certain
Fund
holdings.
Excluding
this
amount,
the
ratio
of
net
investment
income
to
average
net
assets
would
have
been
0.40%.
d
Amount
rounds
to
less
than
$0.01
per
share.
e
Total
return
does
not
reflect
sales
commissions
or
contingent
deferred
sales
charges,
if
applicable,
and
is
not
annualized
for
periods
less
than
one
year.
f
Ratios
are
annualized
for
periods
less
than
one
year.
Templeton
Developing
Markets
Trust
Financial
Highlights
franklintempleton.com
Semiannual
Report
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
12
a
Six
Months
Ended
June
30,
2021
(unaudited)
Year
Ended
December
31,
2020
2019
2018
2017
2016
Class
R
Per
share
operating
performance
(for
a
share
outstanding
throughout
the
period)
Net
asset
value,
beginning
of
period
.....
$24.96
$21.57
$17.86
$21.61
$15.57
$13.37
Income
from
investment
operations
a
:
Net
investment
income
b
.............
0.04
0.07
0.29
c
0.15
0.10
0.07
Net
realized
and
unrealized
gains
(losses)
1.85
3.88
4.36
(3.70)
6.09
2.27
Total
from
investment
operations
........
1.89
3.95
4.65
(3.55)
6.19
2.34
Less
distributions
from:
Net
investment
income
..............
—
(0.21)
(0.71)
(0.20)
(0.15)
(0.14)
Net
realized
gains
.................
—
(0.35)
(0.23)
—
—
—
Total
distributions
...................
—
(0.56)
(0.94)
(0.20)
(0.15)
(0.14)
Net
asset
value,
end
of
period
..........
$26.85
$24.96
$21.57
$17.86
$21.61
$15.57
Total
return
d
.......................
7.57%
18.43%
26.02%
(16.38)%
39.90%
17.48%
Ratios
to
average
net
assets
e
Expenses
before
waiver
and
payments
by
affiliates
..........................
1.76%
1.78%
1.77%
1.81%
1.98%
2.04%
Expenses
net
of
waiver
and
payments
by
affiliates
..........................
1.63%
1.62%
1.63%
1.59%
1.80%
f
1.83%
Net
investment
income
...............
0.31%
0.35%
1.32%
c
0.74%
0.51%
0.39%
Supplemental
data
Net
assets,
end
of
period
(000’s)
........
$30,364
$20,234
$20,016
$18,025
$22,512
$16,628
Portfolio
turnover
rate
................
10.97%
18.58%
17.71%
9.96%
8.89%
27.40%
f
Benefit
of
expense
reduction
rounds
to
less
than
0.01%.
a
The
amount
shown
for
a
share
outstanding
throughout
the
period
may
not
correlate
with
the
Statement
of
Operations
for
the
period
due
to
the
timing
of
sales
and
repurchases
of
the
Fund’s
shares
in
relation
to
income
earned
and/or
fluctuating
fair
value
of
the
investments
of
the
Fund.
b
Based
on
average
daily
shares
outstanding.
c
Net
investment
income
per
share
includes
approximately
$0.09
per
share
related
to
income
received
in
the
form
of
special
dividends
in
connection
with
certain
Fund
holdings.
Excluding
this
amount,
the
ratio
of
net
investment
income
to
average
net
assets
would
have
been
0.90%.
d
Total
return
is
not
annualized
for
periods
less
than
one
year.
e
Ratios
are
annualized
for
periods
less
than
one
year.
Templeton
Developing
Markets
Trust
Financial
Highlights
franklintempleton.com
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
Semiannual
Report
13
a
Six
Months
Ended
June
30,
2021
(unaudited)
Year
Ended
December
31,
2020
2019
2018
2017
2016
Class
R6
Per
share
operating
performance
(for
a
share
outstanding
throughout
the
period)
Net
asset
value,
beginning
of
period
.....
$25.23
$21.78
$18.02
$21.82
$15.70
$13.49
Income
from
investment
operations
a
:
Net
investment
income
b
.............
0.12
0.25
0.39
c
0.28
0.22
0.19
Net
realized
and
unrealized
gains
(losses)
1.87
3.89
4.45
(3.75)
6.19
2.28
Total
from
investment
operations
........
1.99
4.14
4.84
(3.47)
6.41
2.47
Less
distributions
from:
Net
investment
income
..............
—
(0.34)
(0.85)
(0.33)
(0.29)
(0.26)
Net
realized
gains
.................
—
(0.35)
(0.23)
—
—
—
Total
distributions
...................
—
(0.69)
(1.08)
(0.33)
(0.29)
(0.26)
Net
asset
value,
end
of
period
..........
$27.22
$25.23
$21.78
$18.02
$21.82
$15.70
Total
return
d
.......................
7.89%
19.16%
26.89%
(15.90)%
40.88%
18.34%
Ratios
to
average
net
assets
e
Expenses
before
waiver
and
payments
by
affiliates
..........................
1.12%
1.15%
1.15%
1.21%
1.28%
1.30%
Expenses
net
of
waiver
and
payments
by
affiliates
..........................
1.00%
1.00%
0.99%
0.96%
1.09%
f
1.13%
Net
investment
income
...............
0.90%
1.19%
1.96%
c
1.37%
1.22%
1.09%
Supplemental
data
Net
assets,
end
of
period
(000’s)
........
$237,431
$203,362
$120,791
$94,344
$103,734
$57,153
Portfolio
turnover
rate
................
10.97%
18.58%
17.71%
9.96%
8.89%
27.40%
f
Benefit
of
expense
reduction
rounds
to
less
than
0.01%.
a
The
amount
shown
for
a
share
outstanding
throughout
the
period
may
not
correlate
with
the
Statement
of
Operations
for
the
period
due
to
the
timing
of
sales
and
repurchases
of
the
Fund’s
shares
in
relation
to
income
earned
and/or
fluctuating
fair
value
of
the
investments
of
the
Fund.
b
Based
on
average
daily
shares
outstanding.
c
Net
investment
income
per
share
includes
approximately
$0.09
per
share
related
to
income
received
in
the
form
of
special
dividends
in
connection
with
certain
Fund
holdings.
Excluding
this
amount,
the
ratio
of
net
investment
income
to
average
net
assets
would
have
been
1.54%.
d
Total
return
is
not
annualized
for
periods
less
than
one
year.
e
Ratios
are
annualized
for
periods
less
than
one
year.
Templeton
Developing
Markets
Trust
Financial
Highlights
franklintempleton.com
Semiannual
Report
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
14
a
Six
Months
Ended
June
30,
2021
(unaudited)
Year
Ended
December
31,
2020
2019
2018
2017
2016
Advisor
Class
Per
share
operating
performance
(for
a
share
outstanding
throughout
the
period)
Net
asset
value,
beginning
of
period
.....
$25.27
$21.82
$18.06
$21.86
$15.73
$13.52
Income
from
investment
operations
a
:
Net
investment
income
b
.............
0.10
0.18
0.37
c
0.25
0.20
0.13
Net
realized
and
unrealized
gains
(losses)
1.88
3.94
4.44
(3.75)
6.18
2.31
Total
from
investment
operations
........
1.98
4.12
4.81
(3.50)
6.38
2.44
Less
distributions
from:
Net
investment
income
..............
—
(0.32)
(0.82)
(0.30)
(0.25)
(0.23)
Net
realized
gains
.................
—
(0.35)
(0.23)
—
—
—
Total
distributions
...................
—
(0.67)
(1.05)
(0.30)
(0.25)
(0.23)
Net
asset
value,
end
of
period
..........
$27.25
$25.27
$21.82
$18.06
$21.86
$15.73
Total
return
d
.......................
7.84%
19.01%
26.67%
(15.99)%
40.59%
18.08%
Ratios
to
average
net
assets
e
Expenses
before
waiver
and
payments
by
affiliates
..........................
1.26%
1.28%
1.27%
1.31%
1.48%
1.54%
Expenses
net
of
waiver
and
payments
by
affiliates
..........................
1.13%
1.13%
1.13%
1.09%
1.30%
f
1.33%
Net
investment
income
...............
0.77%
0.87%
1.82%
c
1.24%
1.01%
0.89%
Supplemental
data
Net
assets,
end
of
period
(000’s)
........
$257,371
$244,645
$195,065
$156,766
$179,125
$117,914
Portfolio
turnover
rate
................
10.97%
18.58%
17.71%
9.96%
8.89%
27.40%
a
The
amount
shown
for
a
share
outstanding
throughout
the
period
may
not
correlate
with
the
Statement
of
Operations
for
the
period
due
to
the
timing
of
sales
and
repurchases
of
the
Fund’s
shares
in
relation
to
income
earned
and/or
fluctuating
fair
value
of
the
investments
of
the
Fund.
b
Based
on
average
daily
shares
outstanding.
c
Net
investment
income
per
share
includes
approximately
$0.09
per
share
related
to
income
received
in
the
form
of
special
dividends
in
connection
with
certain
Fund
holdings.
Excluding
this
amount,
the
ratio
of
net
investment
income
to
average
net
assets
would
have
been
1.40%.
d
Total
return
is
not
annualized
for
periods
less
than
one
year.
e
Ratios
are
annualized
for
periods
less
than
one
year.
f
Benefit
of
expense
reduction
rounds
to
less
than
0.01%.
Templeton
Developing
Markets
Trust
Statement
of
Investments
(unaudited),
June
30,
2021
franklintempleton.com
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
Semiannual
Report
15
I
a
a
Industry
Shares
a
Value
a
Common
Stocks
95.1%
Brazil
3.8%
a
B2W
Cia
Digital
..................
Internet
&
Direct
Marketing
Retail
330,000
$
4,394,164
B3
SA
-
Brasil
Bolsa
Balcao
........
Capital
Markets
4,552,255
15,387,337
a
Lojas
Americanas
SA
.............
Multiline
Retail
2,925,337
12,145,548
a
M
Dias
Branco
SA
................
Food
Products
591,300
3,876,170
TOTVS
SA
.....................
Software
240,300
1,818,150
Vale
SA
........................
Metals
&
Mining
1,312,803
29,877,804
67,499,173
Cambodia
0.4%
NagaCorp
Ltd.
..................
Hotels,
Restaurants
&
Leisure
6,735,233
6,495,458
China
28.5%
a
Alibaba
Group
Holding
Ltd.
.........
Internet
&
Direct
Marketing
Retail
5,263,530
149,240,318
b
BAIC
Motor
Corp.
Ltd.,
H,
144A,
Reg
S
Automobiles
5,961,900
2,218,248
a
Baidu,
Inc.,
ADR
.................
Interactive
Media
&
Services
51,325
10,465,168
c
Brilliance
China
Automotive
Holdings
Ltd.
.........................
Automobiles
37,797,200
21,322,034
China
Merchants
Bank
Co.
Ltd.,
A
....
Banks
1,320,400
11,074,142
China
Merchants
Bank
Co.
Ltd.,
H
....
Banks
3,034,400
25,847,438
China
Resources
Cement
Holdings
Ltd.
Construction
Materials
16,776,294
15,939,671
China
Resources
Land
Ltd.
.........
Real
Estate
Management
&
Development
1,278,926
5,165,296
COSCO
SHIPPING
Ports
Ltd.
.......
Transportation
Infrastructure
2,359,319
1,842,073
a
Daqo
New
Energy
Corp.,
ADR
......
Semiconductors
&
Semiconductor
Equipment
289,157
18,800,988
Guangzhou
Tinci
Materials
Technology
Co.
Ltd.,
A
....................
Chemicals
927,432
15,286,745
Health
&
Happiness
H&H
International
Holdings
Ltd.
..................
Food
Products
2,273,500
9,531,052
Longshine
Technology
Group
Co.
Ltd.,
A
Software
2,064,763
5,374,673
NetEase
,
Inc.,
ADR
...............
Entertainment
91,705
10,569,001
a
New
Oriental
Education
&
Technology
Group,
Inc.
....................
Diversified
Consumer
Services
637,700
5,237,344
a
New
Oriental
Education
&
Technology
Group,
Inc.,
ADR
...............
Diversified
Consumer
Services
730,461
5,982,476
Ping
An
Bank
Co.
Ltd.,
A
...........
Banks
3,816,533
13,366,790
Ping
An
Insurance
Group
Co.
of
China
Ltd.,
A
.......................
Insurance
1,071,800
10,660,915
Ping
An
Insurance
Group
Co.
of
China
Ltd.,
H
.......................
Insurance
202,000
1,974,618
Tencent
Holdings
Ltd.
.............
Interactive
Media
&
Services
1,902,412
143,236,452
a
Tencent
Music
Entertainment
Group,
ADR
........................
Entertainment
783,281
12,125,190
Uni
-President
China
Holdings
Ltd.
....
Food
Products
8,683,998
9,581,358
Weifu
High-Technology
Group
Co.
Ltd.,
B
...........................
Auto
Components
1,230,263
2,447,227
507,289,217
Hungary
0.6%
Richter
Gedeon
Nyrt
.
.............
Pharmaceuticals
436,594
11,625,952
India
6.5%
ACC
Ltd.
.......................
Construction
Materials
118,800
3,222,984
a
Bajaj
Holdings
&
Investment
Ltd.
.....
Diversified
Financial
Services
297,376
14,466,769
a
ICICI
Bank
Ltd.
..................
Banks
7,709,981
65,607,450
Infosys
Ltd.
.....................
IT
Services
1,532,533
32,405,470
115,702,673
Indonesia
0.5%
Astra
International
Tbk
.
PT
.........
Automobiles
28,852,600
9,847,178
Templeton
Developing
Markets
Trust
Statement
of
Investments
(unaudited)
franklintempleton.com
Semiannual
Report
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
16
a
a
Industry
Shares
a
Value
a
Common
Stocks
(continued)
Mexico
1.5%
Banco
Santander
Mexico
SA
Institucion
de
Banca
Multiple
Grupo
Financiero
Santand
,
ADR
.................
Banks
3,726,457
$
23,402,150
a,b
Nemak
SAB
de
CV,
144A,
Reg
S
....
Auto
Components
8,826,866
3,095,118
26,497,268
Pakistan
0.2%
Habib
Bank
Ltd.
.................
Banks
4,545,687
3,519,381
Peru
0.2%
Intercorp
Financial
Services,
Inc.
.....
Banks
123,460
3,119,834
Philippines
0.2%
BDO
Unibank
,
Inc.
...............
Banks
1,411,517
3,270,236
Russia
6.4%
Gazprom
PJSC,
ADR
.............
Oil,
Gas
&
Consumable
Fuels
569,144
4,344,643
LUKOIL
PJSC,
ADR
..............
Oil,
Gas
&
Consumable
Fuels
388,042
36,015,120
a,b,d
Mail.Ru
Group
Ltd.,
GDR,
Reg
S
.....
Interactive
Media
&
Services
134,941
3,067,582
Sberbank
of
Russia
PJSC,
ADR
.....
Banks
2,151,227
35,746,933
a
Yandex
NV,
A
...................
Interactive
Media
&
Services
486,380
34,411,385
113,585,663
South
Africa
4.3%
a
Massmart
Holdings
Ltd.
............
Food
&
Staples
Retailing
3,651,658
16,102,194
Naspers
Ltd.,
N
..................
Internet
&
Direct
Marketing
Retail
284,846
60,028,867
76,131,061
South
Korea
22.4%
Fila
Holdings
Corp.
...............
Textiles,
Apparel
&
Luxury
Goods
371,596
19,135,825
KT
Skylife
Co.
Ltd.
...............
Media
452,147
4,310,960
a
LegoChem
Biosciences,
Inc.
........
Life
Sciences
Tools
&
Services
101,787
4,794,081
LG
Corp.
.......................
Industrial
Conglomerates
444,655
40,320,220
NAVER
Corp.
...................
Interactive
Media
&
Services
210,373
77,803,416
POSCO
.......................
Metals
&
Mining
70,371
21,675,860
Samsung
Electronics
Co.
Ltd.
.......
Technology
Hardware,
Storage
&
Peripherals
2,657,149
189,582,944
Samsung
Life
Insurance
Co.
Ltd.
.....
Insurance
364,866
25,803,647
Soulbrain
Co.
Ltd.
................
Chemicals
49,755
14,468,133
397,895,086
Taiwan
16.4%
Hon
Hai
Precision
Industry
Co.
Ltd.
...
Electronic
Equipment,
Instruments
&
Components
5,507,663
22,071,321
Largan
Precision
Co.
Ltd.
..........
Electronic
Equipment,
Instruments
&
Components
14,015
1,555,394
MediaTek
,
Inc.
..................
Semiconductors
&
Semiconductor
Equipment
1,443,501
49,686,411
Taiwan
Semiconductor
Manufacturing
Co.
Ltd.
......................
Semiconductors
&
Semiconductor
Equipment
10,152,536
218,250,497
291,563,623
Thailand
1.2%
Kasikornbank
PCL
...............
Banks
3,395,200
12,535,277
Kiatnakin
Phatra
Bank
PCL
.........
Banks
2,718,641
4,734,849
Thai
Beverage
PCL
...............
Beverages
9,206,700
4,629,796
21,899,922
United
Kingdom
1.4%
Unilever
plc
.....................
Personal
Products
415,729
24,294,294
Templeton
Developing
Markets
Trust
Statement
of
Investments
(unaudited)
franklintempleton.com
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
Semiannual
Report
17
See
Abbreviations
on
page
33
.
a
a
Industry
Shares
a
Value
a
Common
Stocks
(continued)
United
States
0.6%
Cognizant
Technology
Solutions
Corp.,
A
...........................
IT
Services
153,246
$
10,613,818
Total
Common
Stocks
(Cost
$961,414,441)
.....................................
1,690,849,837
a
Preferred
Stocks
3.6%
Brazil
3.6%
a
Banco
Bradesco
SA,
ADR
..........
Banks
6,539,655
33,548,430
e
Itau
Unibanco
Holding
SA,
ADR,
0.81%
Banks
5,162,101
31,024,227
64,572,657
Total
Preferred
Stocks
(Cost
$47,658,996)
......................................
64,572,657
a
a
a
a
a
Escrows
and
Litigation
Trusts
0.0%
a,c
Hemisphere
Properties
India
Ltd.,
Escrow
Account
................
395,958
—
Total
Escrows
and
Litigation
Trusts
(Cost
$–)
...................................
—
Total
Long
Term
Investments
(Cost
$1,009,073,437)
.............................
1,755,422,494
Short
Term
Investments
1.9%
a
a
Industry
Shares
a
Value
a
a
a
a
a
a
Money
Market
Funds
1.8%
United
States
1.8%
f,g
Institutional
Fiduciary
Trust
-
Money
Market
Portfolio,
0.01%
..........
32,603,453
32,603,453
Total
Money
Market
Funds
(Cost
$32,603,453)
..................................
32,603,453
h
Investments
from
Cash
Collateral
Received
for
Loaned
Securities
0.1%
Money
Market
Funds
0.1%
f,g
Institutional
Fiduciary
Trust
-
Money
Market
Portfolio,
0.01%
..........
1,335,993
1,335,993
Total
Investments
from
Cash
Collateral
Received
for
Loaned
Securities
(Cost
$1,335,993)
.................................................................
1,335,993
a
a
a
a
a
Total
Short
Term
Investments
(Cost
$33,939,446
)
................................
33,939,446
a
a
a
a
Total
Investments
(Cost
$1,043,012,883)
100.6%
................................
$1,789,361,940
Other
Assets,
less
Liabilities
(0.6)%
...........................................
(10,829,603)
Net
Assets
100.0%
...........................................................
$1,778,532,337
a
a
a
Templeton
Developing
Markets
Trust
Statement
of
Investments
(unaudited)
franklintempleton.com
Semiannual
Report
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
18
a
Non-income
producing.
b
Security
was
purchased
pursuant
to
Rule
144A
or
Regulation
S
under
the
Securities
Act
of
1933.
144A
securities
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.
Regulation
S
securities
cannot
be
sold
in
the
United
States
without
either
an
effective
registration
statement
filed
pursuant
to
the
Securities
Act
of
1933,
or
pursuant
to
an
exemption
from
registration.
At
June
30,
2021,
the
aggregate
value
of
these
securities
was
$8,380,948,
representing
0.5%
of
net
assets.
c
Fair
valued
using
significant
unobservable
inputs.
See
Note
9
regarding
fair
value
measurements.
d
A
portion
or
all
of
the
security
is
on
loan
at
June
30,
2021.
See
Note
1(c).
e
Variable
rate
security.
The
rate
shown
represents
the
yield
at
period
end.
f
See
Note
3(f)
regarding
investments
in
affiliated
management
investment
companies.
g
The
rate
shown
is
the
annualized
seven-day
effective
yield
at
period
end.
h
See
Note
1(c)
regarding
securities
on
loan.
Templeton
Developing
Markets
Trust
Financial
Statements
Statement
of
Assets
and
Liabilities
June
30,
2021
(unaudited)
franklintempleton.com
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
Semiannual
Report
19
Templeton
Developing
Markets
Trust
Assets:
Investments
in
securities:
Cost
-
Unaffiliated
issuers
...................................................................
$1,009,073,437
Cost
-
Non-controlled
affiliates
(Note
3f)
........................................................
33,939,446
Value
-
Unaffiliated
issuers
(Includes
securities
loaned
of
$1,295,563)
.................................
$1,755,422,494
Value
-
Non-controlled
affiliates
(Note
3f)
........................................................
33,939,446
Foreign
currency,
at
value
(cost
$594,874)
........................................................
594,850
Receivables:
Investment
securities
sold
...................................................................
1,714
Capital
shares
sold
........................................................................
1,568,555
Dividends
...............................................................................
2,416,839
Total
assets
..........................................................................
1,793,943,898
Liabilities:
Payables:
Investment
securities
purchased
..............................................................
5,316,888
Capital
shares
redeemed
...................................................................
1,180,041
Management
fees
.........................................................................
1,325,049
Distribution
fees
..........................................................................
301,107
Transfer
agent
fees
........................................................................
34,834
Trustees'
fees
and
expenses
.................................................................
32,987
Payable
upon
return
of
securities
loaned
(Note
1c)
..................................................
1,335,993
Deferred
tax
...............................................................................
5,502,810
Accrued
expenses
and
other
liabilities
...........................................................
381,852
Total
liabilities
.........................................................................
15,411,561
Net
assets,
at
value
.................................................................
$1,778,532,337
Net
assets
consist
of:
Paid-in
capital
.............................................................................
$1,059,941,112
Total
distributable
earnings
(losses)
.............................................................
718,591,225
Net
assets,
at
value
.................................................................
$1,778,532,337
Templeton
Developing
Markets
Trust
Financial
Statements
Statement
of
Assets
and
Liabilities
(continued)
June
30,
2021
(unaudited)
franklintempleton.com
Semiannual
Report
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
20
Templeton
Developing
Markets
Trust
Class
A:
Net
assets,
at
value
.......................................................................
$1,205,502,154
Shares
outstanding
........................................................................
44,033,105
Net
asset
value
per
share
a
..................................................................
$27.38
Maximum
offering
price
per
share
(net
asset
value
per
share
÷
94.50%)
................................
$28.97
Class
C:
Net
assets,
at
value
.......................................................................
$47,864,441
Shares
outstanding
........................................................................
1,796,473
Net
asset
value
and
maximum
offering
price
per
share
a
.............................................
$26.64
Class
R:
Net
assets,
at
value
.......................................................................
$30,363,949
Shares
outstanding
........................................................................
1,131,031
Net
asset
value
and
maximum
offering
price
per
share
.............................................
$26.85
Class
R6:
Net
assets,
at
value
.......................................................................
$237,431,093
Shares
outstanding
........................................................................
8,721,260
Net
asset
value
and
maximum
offering
price
per
share
.............................................
$27.22
Advisor
Class:
Net
assets,
at
value
.......................................................................
$257,370,700
Shares
outstanding
........................................................................
9,445,503
Net
asset
value
and
maximum
offering
price
per
share
.............................................
$27.25
a
Redemption
price
is
equal
to
net
asset
value
less
contingent
deferred
sales
charges,
if
applicable.
Templeton
Developing
Markets
Trust
Financial
Statements
Statement
of
Operations
for
the
six
months
ended
June
30,
2021
(unaudited)
franklintempleton.com
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
Semiannual
Report
21
Templeton
Developing
Markets
Trust
Investment
income:
Dividends:
(net
of
foreign
taxes
of
$2,142,004)
Unaffiliated
issuers
........................................................................
$16,419,413
Non-controlled
affiliates
(Note
3
f
)
.............................................................
560
Income
from
securities
loaned:
Unaffiliated
entities
(net
of
fees
and
rebates)
.....................................................
88,324
Non-controlled
affiliates
(Note
3
f
)
.............................................................
16
Total
investment
income
...................................................................
16,508,313
Expenses:
Management
fees
(Note
3
a
)
...................................................................
9,011,662
Distribution
fees:
(Note
3c
)
    Class
A
................................................................................
1,503,239
    Class
C
................................................................................
246,501
    Class
R
................................................................................
67,684
Transfer
agent
fees:
(Note
3e
)
    Class
A
................................................................................
1,033,431
    Class
C
................................................................................
42,459
    Class
R
................................................................................
22,773
    Class
R6
...............................................................................
34,798
    Advisor
Class
............................................................................
215,859
Custodian
fees
.............................................................................
160,173
Reports
to
shareholders
......................................................................
148,679
Registration
and
filing
fees
....................................................................
59,623
Professional
fees
...........................................................................
63,601
Trustees'
fees
and
expenses
..................................................................
98,133
Other
....................................................................................
25,589
Total
expenses
.........................................................................
12,734,204
Expenses
waived/paid
by
affiliates
(Note
3
f
and
3
g
)
..............................................
(1,163,262)
Net
expenses
.........................................................................
11,570,942
Net
investment
income
................................................................
4,937,371
Realized
and
unrealized
gains
(losses):
Net
realized
gain
(loss)
from:
Investments:
(net
of
foreign
taxes
of
$143,115)
Unaffiliated
issuers
......................................................................
47,335,862
Foreign
currency
transactions
................................................................
(321,309)
Net
realized
gain
(loss)
..................................................................
47,014,553
Net
change
in
unrealized
appreciation
(depreciation)
on:
Investments:
Unaffiliated
issuers
......................................................................
77,978,699
Translation
of
other
assets
and
liabilities
denominated
in
foreign
currencies
..............................
(36,550)
Change
in
deferred
taxes
on
unrealized
appreciation
...............................................
(2,264,138)
Net
change
in
unrealized
appreciation
(depreciation)
............................................
75,678,011
Net
realized
and
unrealized
gain
(loss)
............................................................
122,692,564
Net
increase
(decrease)
in
net
assets
resulting
from
operations
..........................................
$127,629,935
Templeton
Developing
Markets
Trust
Financial
Statements
Statements
of
Changes
in
Net
Assets
franklintempleton.com
Semiannual
Report
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
22
Templeton
Developing
Markets
Trust
Six
Months
Ended
June
30,
2021
(unaudited)
Year
Ended
December
31,
2020
Increase
(decrease)
in
net
assets:
Operations:
Net
investment
income
.................................................
$4,937,371
$9,463,917
Net
realized
gain
(loss)
.................................................
47,014,553
22,726,570
Net
change
in
unrealized
appreciation
(depreciation)
...........................
75,678,011
217,737,838
Net
increase
(decrease)
in
net
assets
resulting
from
operations
................
127,629,935
249,928,325
Distributions
to
shareholders:
Class
A
.............................................................
—
(27,124,570)
Class
C
.............................................................
—
(828,443)
Class
R
.............................................................
—
(442,950)
Class
R6
............................................................
—
(5,456,201)
Advisor
Class
........................................................
—
(6,305,135)
Total
distributions
to
shareholders
..........................................
—
(40,157,299)
Capital
share
transactions:
(Note
2
)
Class
A
.............................................................
(27,502,916)
(67,485,284)
Class
C
.............................................................
(4,086,129)
(13,957,277)
Class
R
.............................................................
8,994,730
(2,095,681)
Class
R6
............................................................
17,830,479
56,404,841
Advisor
Class
........................................................
(6,069,694)
19,065,218
Total
capital
share
transactions
............................................
(10,833,530)
(8,068,183)
Net
increase
(decrease)
in
net
assets
...................................
116,796,405
201,702,843
Net
assets:
Beginning
of
period
.....................................................
1,661,735,932
1,460,033,089
End
of
period
..........................................................
$1,778,532,337
$1,661,735,932
Templeton
Developing
Markets
Trust
23
franklintempleton.com
Semiannual
Report
Notes
to
Financial
Statements
(unaudited)
1.
Organization
and
Significant
Accounting
Policies
Templeton
Developing
Markets
Trust (Fund)
is
registered
under
the
Investment
Company
Act
of
1940
(1940
Act)
as
an
open-end
management
investment
company
and
applies
the
specialized
accounting
and
reporting
guidance
in
U.S.
Generally
Accepted
Accounting
Principles
(U.S.
GAAP).
The
Fund
offers
five
classes
of
shares:
Class
A,
Class
C,
Class
R,
Class
R6
and
Advisor
Class.
Class
C
shares
automatically
convert
to
Class
A
shares
after
they
have
been
held
for
10
years.
Each
class
of
shares
may
differ
by
its
initial
sales
load,
contingent
deferred
sales
charges,
voting
rights
on
matters
affecting
a
single
class,
its
exchange
privilege
and
fees
due
to
differing
arrangements
for
distribution
and
transfer
agent
fees. 
The
following
summarizes
the Fund's
significant
accounting
policies.
a.
Financial
Instrument
Valuation 
The
Fund's
investments
in
financial
instruments
are
carried
at
fair
value
daily.
Fair
value
is
the
price
that
would
be
received
to
sell
an
asset
or
paid
to
transfer
a
liability
in
an
orderly
transaction
between
market
participants
on
the
measurement
date.
The
Fund
calculates
the
net
asset
value
(NAV)
per
share
each business
day as
of
4
p.m.
Eastern
time
or
the
regularly
scheduled
close
of
the
New
York
Stock
Exchange
(NYSE),
whichever
is
earlier.
Under
compliance
policies
and
procedures
approved
by
the
Fund's
Board
of
Trustees
(the
Board),
the Fund's
administrator
has
responsibility
for
oversight
of
valuation,
including
leading
the
cross-functional
Valuation
Committee
(VC).
The
Fund
may
utilize
independent
pricing
services,
quotations
from
securities
and
financial
instrument
dealers,
and
other
market
sources
to
determine
fair
value. 
Equity
securities
listed
on
an
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.
Foreign
equity
securities
are
valued
as
of
the
close
of
trading
on
the
foreign
stock
exchange
on
which
the
security
is
primarily
traded,
or
as
of
4
p.m.
Eastern
time.
The
value
is
then
converted
into
its
U.S.
dollar
equivalent
at
the
foreign
exchange
rate
in
effect
at
4
p.m.
Eastern
time
on
the
day
that
the
value
of
the
security
is
determined.
Over-the-counter
(OTC)
securities
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.
Certain
equity
securities
are
valued
based
upon
fundamental
characteristics
or
relationships
to
similar
securities. 
Investments
in open-end mutual
funds
are
valued
at
the
closing
NAV.
The
Fund
has
procedures
to
determine
the
fair
value
of
financial
instruments
for
which
market
prices
are
not
reliable
or
readily
available.
Under
these
procedures,
the Fund
primarily
employs
a
market-based
approach
which
may
use
related
or
comparable
assets
or
liabilities,
recent
transactions,
market
multiples,
book
values,
and
other
relevant
information
for
the
investment
to
determine
the
fair
value
of
the
investment.
An
income-based
valuation
approach
may
also
be
used
in
which
the
anticipated
future
cash
flows
of
the
investment
are
discounted
to
calculate
fair
value.
Discounts
may
also
be
applied
due
to
the
nature
or
duration
of
any
restrictions
on
the
disposition
of
the
investments.
Due
to
the
inherent
uncertainty
of
valuations
of
such
investments,
the
fair
values
may
differ
significantly
from
the
values
that
would
have
been
used
had
an
active
market
existed.
Trading
in
securities
on
foreign
securities
stock
exchanges
and
OTC
markets
may
be
completed
before
4
p.m.
Eastern
time.
In
addition,
trading
in
certain
foreign
markets
may
not
take
place
on
every
Fund's
business
day. Events
can occur
between
the
time
at
which
trading
in
a
foreign
security
is
completed
and
4
p.m.
Eastern
time
that
might
call
into
question
the
reliability
of
the
value
of
a
portfolio
security
held
by
the
Fund.
As
a
result,
differences
may
arise
between
the
value
of
the
Fund's
portfolio
securities
as
determined
at
the
foreign
market
close
and
the
latest
indications
of
value
at
4
p.m.
Eastern
time. In
order
to
minimize
the
potential
for
these
differences,
an
independent
pricing
service
may
be
used
to
adjust
the
value
of
the
Fund's
portfolio
securities
to
the
latest
indications
of
fair
value
at
4
p.m.
Eastern
time.
At
June
30,
2021,
certain
securities
may
have
been
fair
valued
using
these
procedures,
in
which
case
the
securities
were
categorized
as
Level
2
inputs
within
the
fair
value
hierarchy
(referred
to
as
“market
level
fair
value”).
See
the
Fair
Value
Measurements
note
for
more
information.
When
the
last
day
of
the
reporting
period
is
a
non-business
day,
certain
foreign
markets
may
be
open
on
those
days
that
the
Fund's
NAV
is
not
calculated,
which
could
result
in
differences
between
the
value
of
the
Fund's
portfolio
securities
on
the
last
business
day
and
the
last
calendar
day
Templeton
Developing
Markets
Trust
Notes
to
Financial
Statements
(unaudited)
24
franklintempleton.com
Semiannual
Report
of
the
reporting
period.
Any
security
valuation
changes
due
to
an
open
foreign
market
are
adjusted
and
reflected
by
the
Fund
for
financial
reporting
purposes.
b.
Foreign
Currency
Translation 
Portfolio
securities
and
other
assets
and
liabilities
denominated
in
foreign
currencies
are
translated
into
U.S.
dollars
based
on
the
exchange
rate
of
such
currencies
against
U.S.
dollars
on
the
date
of
valuation.
The
Fund
may
enter
into
foreign
currency
exchange
contracts
to
facilitate
transactions
denominated
in
a
foreign
currency.
Purchases
and
sales
of
securities,
income
and
expense
items
denominated
in
foreign
currencies
are
translated
into
U.S.
dollars
at
the
exchange
rate
in
effect
on
the
transaction
date.
Portfolio
securities
and
assets
and
liabilities
denominated
in
foreign
currencies
contain
risks
that
those
currencies
will
decline
in
value
relative
to
the
U.S.
dollar.
Occasionally,
events
may
impact
the
availability
or
reliability
of
foreign
exchange
rates
used
to
convert
the
U.S.
dollar
equivalent
value.
If
such
an
event
occurs,
the
foreign
exchange
rate
will
be
valued
at
fair
value
using
procedures
established
and
approved
by
the
Board.
The
Fund
does
not
separately
report
the
effect
of
changes
in
foreign
exchange
rates
from
changes
in
market
prices
on
securities
held.
Such
changes
are
included
in
net
realized
and
unrealized
gain
or
loss
from
investments
in
the
Statement of
Operations.
Realized
foreign
exchange
gains
or
losses
arise
from
sales
of
foreign
currencies,
currency
gains
or
losses
realized
between
the
trade
and
settlement
dates
on
securities
transactions
and
the
difference
between
the
recorded
amounts
of
dividends,
interest,
and
foreign
withholding
taxes
and
the
U.S.
dollar
equivalent
of
the
amounts
actually
received
or
paid.
Net
unrealized
foreign
exchange
gains
and
losses
arise
from
changes
in
foreign
exchange
rates
on
foreign
denominated
assets
and
liabilities
other
than
investments
in
securities
held
at
the
end
of
the
reporting
period.
c.
Securities
Lending
The
Fund
participates
in
an
agency
based
securities
lending
program
to
earn
additional
income.
The
Fund
receives
collateral
in
the
form
of
cash
and/or
U.S.
Government
and
Agency
securities
against
the
loaned
securities
in
an
amount
equal
to
at
least
102%
of
the
fair
value
of
the
loaned
securities.
Collateral
is
maintained
over
the
life
of
the
loan
in
an
amount
not
less
than
100%
of
the
fair
value
of
loaned
securities,
as
determined
at
the
close
of
Fund
business
each
day;
any
additional
collateral
required
due
to
changes
in
security
values
is
delivered
to
the
Fund
on
the
next
business
day.
Any
cash
collateral
received
is
deposited
into
a
joint
cash
account
with
other
funds
and
is
used
to
invest
in
a
money
market
fund
managed
by
Franklin
Advisers,
Inc.,
an
affiliate
of
the Fund.
The
Fund
may
receive
income
from
the
investment
of
cash
collateral,
in
addition
to
lending
fees
and
rebates
paid
by
the
borrower.
Income
from
securities
loaned,
net
of
fees
paid
to
the
securities
lending
agent
and/
or
third-party
vendor,
is
reported
separately
in
the
Statement
of
Operations.
The
Fund
bears
the
market
risk
with
respect
to any
cash collateral
investment,
securities
loaned,
and
the
risk
that
the
agent
may
default
on
its
obligations
to
the
Fund.
If
the
borrower
defaults
on
its
obligation
to
return
the
securities
loaned,
the
Fund
has
the
right
to
repurchase
the
securities
in
the
open
market
using
the
collateral
received.
The
securities
lending
agent
has
agreed
to
indemnify
the
Fund
in
the
event
of
default
by
a
third
party
borrower.
d.
Income
and
Deferred
Taxes
It
is the Fund's
policy
to
qualify
as
a
regulated
investment
company
under
the
Internal
Revenue
Code. The Fund
intends
to
distribute
to
shareholders
substantially
all
of
its
taxable
income
and
net
realized
gains
to
relieve
it
from
federal
income
and excise
taxes.
As
a
result,
no
provision
for
U.S.
federal
income
taxes
is
required.
The Fund
may
be
subject
to
foreign
taxation
related
to
income
received,
capital
gains
on
the
sale
of
securities
and
certain
foreign
currency
transactions
in
the
foreign
jurisdictions
in
which
it
invests.
Foreign
taxes,
if
any,
are
recorded
based
on
the
tax
regulations
and
rates
that
exist
in
the
foreign
markets
in
which
the
Fund
invests.
When
a
capital
gain
tax
is
determined
to
apply,
the
Fund
records
an
estimated
deferred
tax
liability
in
an
amount
that
would
be
payable
if
the
securities
were
disposed
of
on
the
valuation
date.
1.
Organization
and
Significant
Accounting
Policies
(continued)
a.
Financial
Instrument
Valuation 
(continued)
Templeton
Developing
Markets
Trust
Notes
to
Financial
Statements
(unaudited)
25
franklintempleton.com
Semiannual
Report
The
Fund
may
recognize
an
income
tax
liability
related
to
its
uncertain
tax
positions
under
U.S.
GAAP
when
the
uncertain
tax
position
has
a
less
than
50%
probability
that
it
will
be
sustained
upon
examination
by
the
tax
authorities
based
on
its
technical
merits.
As
of
June
30,
2021,
the
Fund
has
determined
that
no
tax
liability
is
required
in
its
financial
statements
related
to
uncertain
tax
positions
for
any
open
tax
years
(or
expected
to
be
taken
in
future
tax
years).
Open
tax
years
are
those
that
remain
subject
to
examination
and
are
based
on
the
statute
of
limitations
in
each
jurisdiction
in
which
the
Fund
invests. 
e.
Security
Transactions,
Investment
Income,
Expenses
and
Distributions
Security
transactions
are
accounted
for
on
trade
date.
Realized
gains
and
losses
on
security
transactions
are
determined
on
a
specific
identification
basis.
Estimated
expenses
are
accrued
daily.
Dividend
income
is
recorded
on
the
ex-dividend
date
except
for
certain
dividends
from
securities
where
the
dividend
rate
is
not
available.
In
such
cases,
the
dividend
is
recorded
as
soon
as
the
information
is
received
by
the
Fund.
Distributions
to shareholders
are
recorded
on
the
ex-dividend
date.
Distributable
earnings
are
determined
according
to
income
tax
regulations
(tax
basis)
and
may
differ
from
earnings
recorded
in
accordance
with
U.S.
GAAP.
These
differences
may
be
permanent
or
temporary.
Permanent
differences
are
reclassified
among
capital
accounts
to
reflect
their
tax
character.
These
reclassifications
have
no
impact
on
net
assets
or
the
results
of
operations.
Temporary
differences
are
not
reclassified,
as
they
may
reverse
in
subsequent
periods.
Realized
and
unrealized
gains
and
losses
and
net
investment
income,
excluding
class
specific
expenses,
are
allocated
daily
to
each
class
of
shares
based
upon
the
relative
proportion
of
net
assets
of
each
class.
Differences
in
per
share
distributions
by
class
are
generally
due
to
differences
in
class
specific
expenses.
f.
Accounting
Estimates
The
preparation
of
financial
statements
in
accordance
with
U.S.
GAAP
requires
management
to
make
estimates
and
assumptions
that
affect
the
reported
amounts
of
assets
and
liabilities
at
the
date
of
the
financial
statements
and
the
amounts
of
income
and
expenses
during
the
reporting
period.
Actual
results
could
differ
from
those
estimates.
g.
Guarantees
and
Indemnifications
Under
the
Fund's
organizational
documents,
its
officers
and
trustees
are
indemnified
by
the
Fund
against
certain
liabilities
arising
out
of
the
performance
of
their
duties
to
the
Fund.
Additionally,
in
the
normal
course
of
business,
the
Fund,
enters
into
contracts
with
service
providers
that
contain
general
indemnification
clauses.
The
Fund's
maximum
exposure
under
these
arrangements
is
unknown
as
this
would
involve
future
claims
that
may
be
made
against
the
Fund
that
have
not
yet
occurred.
Currently,
the
Fund
expects
the
risk
of
loss
to
be
remote.
1.
Organization
and
Significant
Accounting
Policies
(continued)
d.
Income
and
Deferred
Taxes
(continued)
Templeton
Developing
Markets
Trust
Notes
to
Financial
Statements
(unaudited)
26
franklintempleton.com
Semiannual
Report
2.
Shares
of
Beneficial
Interest
At
June
30,
2021,
there
were
an
unlimited
number
of
shares
authorized
(without
par
value).
Transactions
in
the
Fund’s
shares
were
as
follows:
Six
Months
Ended
June
30,
2021
Year
Ended
December
31,
2020
Shares
Amount
Shares
Amount
Class
A
Shares:
Shares
sold
a
...................................
2,357,113
$64,454,080
4,994,434
$107,915,006
Shares
issued
in
reinvestment
of
distributions
..........
—
—
963,688
23,426,674
Shares
redeemed
...............................
(3,370,537)
(91,956,996)
(9,521,939)
(198,826,964)
Net
increase
(decrease)
..........................
(1,013,424)
$(27,502,916)
(3,563,817)
$(67,485,284)
Class
C
Shares:
Shares
sold
...................................
211,731
$5,649,766
235,022
$4,726,465
Shares
issued
in
reinvestment
of
distributions
..........
—
—
35,265
826,154
Shares
redeemed
a
..............................
(365,667)
(9,735,895)
(969,767)
(19,509,896)
Net
increase
(decrease)
..........................
(153,936)
$(4,086,129)
(699,480)
$(13,957,277)
Class
R
Shares:
Shares
sold
...................................
471,205
$13,038,906
151,981
$3,200,565
Shares
issued
in
reinvestment
of
distributions
..........
—
—
18,567
441,959
Shares
redeemed
...............................
(150,949)
(4,044,176)
(287,640)
(5,738,205)
Net
increase
(decrease)
..........................
320,256
$8,994,730
(117,092)
$(2,095,681)
Class
R6
Shares:
Shares
sold
...................................
1,184,973
$32,118,906
6,456,993
$129,740,767
Shares
issued
in
reinvestment
of
distributions
..........
—
—
153,363
3,712,802
Shares
redeemed
...............................
(523,915)
(14,288,427)
(4,095,905)
(77,048,728)
Net
increase
(decrease)
..........................
661,058
$17,830,479
2,514,451
$56,404,841
Advisor
Class
Shares:
Shares
sold
...................................
1,311,825
$35,584,469
3,503,799
$72,953,455
Shares
issued
in
reinvestment
of
distributions
..........
—
—
231,451
5,605,958
Shares
redeemed
...............................
(1,548,314)
(41,654,163)
(2,992,147)
(59,494,195)
Net
increase
(decrease)
..........................
(236,489)
$(6,069,694)
743,103
$19,065,218
a
May
include
a
portion
of
Class
C
shares
that
were
automatically
converted
to
Class
A.
Templeton
Developing
Markets
Trust
Notes
to
Financial
Statements
(unaudited)
27
franklintempleton.com
Semiannual
Report
3.
Transactions
with
Affiliates
Franklin
Resources,
Inc.
is
the
holding
company
for
various
subsidiaries
that
together
are
referred
to
as
Franklin
Templeton.
Certain
officers
and
trustees
of
the
Fund
are
also
officers,
and/or
directors
of
the
following
subsidiaries:
a.
Management
Fees
The
Fund
pays
an
investment
management
fee
to
Asset
Management
based
on
the
average
daily
net
assets
of
the
Fund
as
follows:
For
the
period
ended
June
30,
2021,
the
annualized
gross
effective
investment
management
fee
rate
was
1.028%
of
the
Fund’s
average
daily
net
assets. 
Under
a
subadvisory
agreement,
FTIML,
an
affiliate
of
Asset
Management,
provides
subadvisory
services
to
the
Fund.
The
subadvisory
fee
is
paid
by
Asset
Management
based
on
the
Fund's
average
daily
net
assets,
and
is
not
an
additional
expense
of
the
Fund.
b.
Administrative
Fees
Under
an
agreement
with
Asset
Management,
FT
Services
provides
administrative
services
to
the
Fund.
The
fee
is
paid
by
Asset
Management
based
on
the
Fund's
average
daily
net
assets,
and
is
not
an
additional
expense
of
the
Fund.
c.
Distribution
Fees
The
Board
has
adopted
distribution
plans
for
each
share
class,
with
the
exception
of
Class
R6
and
Advisor
Class
shares,
pursuant
to
Rule
12b-1
under
the
1940
Act.
Under
the
Fund’s
Class A reimbursement
distribution
plan,
the
Fund
reimburses
Distributors
for
costs
incurred
in
connection
with
the
servicing,
sale
and
distribution
of
the
Fund's
shares
up
to
the
maximum
annual
plan
rate.
Under
the
Class
A
reimbursement
distribution
plan,
costs
exceeding
the
maximum
for
the
current
plan
year
cannot
be
reimbursed
in
subsequent
periods.
In
addition,
under
the
Fund’s
Class C
and
R
compensation
distribution
plans,
the
Fund
pays
Distributors
for
costs
incurred
in
connection
with
the
servicing,
sale
and
distribution
of
the
Fund's
shares
up
to
the
maximum
annual
plan
rate
for
each
class.
The
plan
year,
for
purposes
of
monitoring
compliance
with
the
maximum
annual
plan
rates,
is
February
1
through
January
31.
The
maximum
annual
plan
rates,
based
on
the
average
daily
net
assets,
for
each
class,
are
as
follows:
Subsidiary
Affiliation
Templeton
Asset
Management
Ltd.
(Asset
Management)
Investment
manager
Franklin
Templeton
Investment
Management
Limited
(FTIML)
Investment
manager
Franklin
Templeton
Services,
LLC
(FT
Services)
Administrative
manager
Franklin
Distributors,
LLC
(Distributors)
(formerly
Franklin
Templeton
Distributors
Inc.)
Principal
underwriter
Franklin
Templeton
Investor
Services,
LLC
(Investor
Services)
Transfer
agent
Annualized
Fee
Rate
Net
Assets
1.050%
Up
to
and
including
$1
billion
1.000%
Over
$1
billion,
up
to
and
including
$5
billion
0.950%
Over
$5
billion,
up
to
and
including
$10
billion
0.900%
Over
$10
billion,
up
to
and
including
$15
billion
0.850%
Over
$15
billion,
up
to
and
including
$20
billion
0.800%
In
excess
of
$20
billion
Templeton
Developing
Markets
Trust
Notes
to
Financial
Statements
(unaudited)
28
franklintempleton.com
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Report
The
Board
has
set
the
current
rate
at
0.25%
per
year
for
Class
A
shares
until
further
notice
and
approval
by
the
Board.
d.
Sales
Charges/Underwriting
Agreements
Front-end
sales
charges
and
contingent
deferred
sales
charges
(CDSC)
do
not
represent
expenses
of
the
Fund.
These
charges
are
deducted
from
the
proceeds
of
sales
of
Fund
shares
prior
to
investment
or
from
redemption
proceeds
prior
to
remittance,
as
applicable.
Distributors
has
advised
the
Fund
of
the
following
commission
transactions
related
to
the
sales
and
redemptions
of
the
Fund's
shares
for
the
period:
e.
Transfer
Agent
Fees
Each
class
of
shares pays
transfer
agent
fees
to
Investor
Services
for
its
performance
of
shareholder
servicing
obligations.
The
fees
are
based
on
an
annualized
asset
based
fee
of
0.02%
plus
a
transaction
based
fee.
In
addition,
each
class reimburses
Investor
Services
for
out
of
pocket
expenses
incurred
and,
except
for
Class
R6,
reimburses
shareholder
servicing
fees
paid
to
third
parties.
These
fees
are
allocated
daily
based
upon
their
relative
proportion
of
such
classes'
aggregate
net
assets.
Class
R6
pays
Investor
Services
transfer
agent
fees
specific
to
that
class.
For
the
period
ended
June
30,
2021,
the
Fund
paid
transfer
agent
fees
of
$1,349,320,
of
which $585,679
was
retained
by
Investor
Services.
f.
Investments
in
Affiliated
Management
Investment
Companies
The
Fund
invests
in
one
or
more
affiliated
management
investment
companies.
As
defined
in
the
1940
Act,
an
investment
is
deemed
to
be
a
“Controlled
Affiliate”
of
a
fund
when
a
fund
owns,
either
directly
or
indirectly,
25%
or
more
of
the
affiliated
fund’s
outstanding
shares
or
has
the
power
to
exercise
control
over
management
or
policies
of
such
fund.
The
Fund
does
not
invest
for
purposes
of
exercising
a
controlling
influence
over
the
management
or
policies.
Management
fees
paid
by
the
Fund
are
waived
on
assets
invested
in
the
affiliated
management
investment
companies,
as
noted
in
the
Statement
of
Operations,
in
an
amount
not
to
exceed
the
management
and
administrative
fees
paid
directly
or
indirectly
by
each
affiliate.
During
the
period
ended
June
30,
2021,
the
Fund
held
investments
in
affiliated
management
investment
companies
as
follows:
Class
A
....................................................................................
0.35%
Class
C
....................................................................................
1.00%
Class
R
....................................................................................
0.50%
Sales
charges
retained
net
of
commissions
paid
to
unaffiliated
brokers/dealers
..............................
$42,143
CDSC
retained
..............................................................................
$1,672
3.
Transactions
with
Affiliates
(continued)
c.
Distribution
Fees
(continued)
Templeton
Developing
Markets
Trust
Notes
to
Financial
Statements
(unaudited)
29
franklintempleton.com
Semiannual
Report
g.
Waiver
and
Expense
Reimbursements
Asset
Management
has
contractually
agreed
in
advance
to
waive
or
limit
its
fees
and
to
assume
as
its
own
expense
certain
expenses
otherwise
payable
by
the
Fund
so
that
the
operating
expenses
(excluding
distribution
fees,
acquired
fund
fees
and
expenses,
and
certain
non-routine
expenses
or
costs,
including
those
relating
to
litigation,
indemnification,
reorganizations,
and
liquidations)
for
each
class
of
the
Fund
do
not
exceed
1.13%,
based
on
the
average
net
assets
of
each
class
until
April
30,
2022.
Total
expenses
waived
or
paid
are
not
subject
to
recapture
subsequent
to
the
Fund's
fiscal
year
end.
Investor
Services
has
contractually
agreed
in
advance
to
waive
or
limit
its
fees
so
that
the
Class
R6
transfer
agent
fees
do
not
exceed
0.03%
based
on
the
average
net
assets
of
the
class
until
April
30,
2022.
4.
Income
Taxes
For
tax
purposes,
capital
losses
may
be
carried
over
to
offset
future
capital
gains. 
At
December
31,
2020,
the
capital
loss
carryforwards
were
as
follows:
    aa
Value
at
Beginning
of
Period
Purchases
Sales
Realized
Gain
(Loss)
Net
Change
in
Unrealized
Appreciation
(Depreciation)
Value
at
End
of
Period
Number
of
Shares
Held
at
End
of
Period
Investment
Income
a      
a  
a  
a  
a  
a  
a  
a  
Templeton
Developing
Markets
Trust
Non-Controlled
Affiliates
Dividends
Institutional
Fiduciary
Trust
-
Money
Market
Portfolio,
0.01%
.......
$5,949,596
$166,715,377
$(140,061,520)
$—
$—
$32,603,453
32,603,453
$560
Non-Controlled
Affiliates
Income
from
securities
loaned
Institutional
Fiduciary
Trust
-
Money
Market
Portfolio,
0.01%
.......
$3,000,000
$6,543,162
$(8,207,169)
$
—
$
—
$1,335,993
1,335,993
$16
Total
Affiliated
Securities
....
$8,949,596
$173,258,539
$(148,268,689)
$—
$—
$33,939,446
$576
Capital
loss
carryforwards
not
subject
to
expiration:
Short
term
................................................................................
$6,310,491
Long
term
................................................................................
30,486,525
Total
capital
loss
carryforwards
...............................................................
$36,797,016
a
a
Includes
$36,797,016
from
the
acquired
Templeton
BRIC
Fund,
which
may
be
carried
over
to
offset
future
capital
gains,
subject
to
certain
limitations
.
3.
Transactions
with
Affiliates
(continued)
f.
Investments
in
Affiliated
Management
Investment
Companies
(continued)
Templeton
Developing
Markets
Trust
Notes
to
Financial
Statements
(unaudited)
30
franklintempleton.com
Semiannual
Report
At
June
30,
2021,
the
cost
of
investments
and
net
unrealized
appreciation
(depreciation)
for
income
tax
purposes
were
as
follows:
Differences
between
income
and/or
capital
gains
as
determined
on
a
book
basis
and
a
tax
basis
are
primarily
due
to
differing
treatments
of
foreign
capital
gains
tax,
corporate
actions
and
wash
sales.
5.
Investment
Transactions
Purchases
and
sales
of
investments
(excluding
short
term
securities)
for
the
period
ended
June
30,
2021,
aggregated
$189,424,973
and
$207,851,454,
respectively. 
At
June
30,
2021,
in
connection
with
securities
lending
transactions,
the
Fund
loaned
equity
investments
and
received
$1,335,993
of
cash
collateral.
The
gross
amount
of
recognized
liability
for
such
transactions
is
included
in
payable
upon
return
of
securities
loaned
in
the
Statement
of
Assets
and
Liabilities.
The
agreements
can
be
terminated
at
any
time.
6.
Concentration
of
Risk
Investing
in
foreign
securities
may
include
certain
risks
and
considerations
not
typically
associated
with
investing
in
U.S.
securities,
such
as
fluctuating
currency
values
and
changing
local,
regional
and
global
economic,
political
and
social
conditions,
which
may
result
in
greater
market
volatility.
Political
and
financial
uncertainty
in
many
foreign
regions
may
increase
market
volatility
and
the
economic
risk
of
investing
in
foreign
securities.
In
addition,
certain
foreign
securities
may
not
be
as
liquid
as
U.S.
securities.
The
United
States
and
other
nations
have
imposed
and
could
impose
additional
sanctions
on
certain
issuers
in
Russia
due
to
regional
conflicts.
These
sanctions
could
result
in
the
devaluation
of
Russia’s
currency,
a
downgrade
in
Russian
issuers’
credit
ratings,
or
a
decline
in
the
value
and
liquidity
of
Russian
stocks
or
other
securities.
Such
sanctions
could
also
adversely
affect
Russia’s
economy.
The
Fund
may
be
prohibited
from
investing
in
securities
issued
by
companies
subject
to
such
sanctions.
In
addition,
if
the
Fund
holds
the
securities
of
an
issuer
that
is
subject
to
such
sanctions,
an
immediate
freeze
of
that
issuer’s
securities
could
result,
impairing
the
ability
of
the
Fund
to
buy,
sell,
receive
or
deliver
those
securities.
There
is
also
the
risk
that
countermeasures
could
be
taken
by
Russia’s
government,
which
could
involve
the
seizure
of
the
Fund’s
assets.
These
risks
could
affect
the
value
of
the
Fund's
portfolio.
While
the
Fund
holds
securities
of
certain
issuers
impacted
by
the
sanctions,
existing
investments
do
not
presently
violate
the
applicable
terms
and
conditions
of
the
sanctions.
The
sanctions
currently
do
not
affect
the
Fund's
ability
to
sell
these
securities.
At
June
30,
2021,
the
Fund
had
6.4%
of
its
net
assets
invested
in
Russia.
7.
Novel
Coronavirus
Pandemic 
The
global
outbreak
of
the
novel
coronavirus
disease,
known
as
COVID-19, has
caused
adverse
effects
on
many
companies,
sectors,
nations,
regions
and
the
markets
in
general, and
may
continue for
an unpredictable duration.
The
effects
of
this
pandemic
may
materially
impact
the
value
and
performance
of
the Fund, its ability
to
buy
and
sell
fund
investments
at
appropriate
valuations
and its ability
to
achieve its investment
objectives.
Cost
of
investments
..........................................................................
$1,081,233,191
Unrealized
appreciation
........................................................................
$810,169,465
Unrealized
depreciation
........................................................................
(102,040,716)
Net
unrealized
appreciation
(depreciation)
..........................................................
$708,128,749
4.
Income
Taxes
(continued)
Templeton
Developing
Markets
Trust
Notes
to
Financial
Statements
(unaudited)
31
franklintempleton.com
Semiannual
Report
8.
Credit
Facility
The
Fund,
together
with
other
U.S.
registered
and
foreign
investment
funds
(collectively,
Borrowers),
managed
by
Franklin
Templeton,
are
borrowers
in
a
joint
syndicated
senior
unsecured
credit
facility
totaling
$2.675
billion
(Global
Credit
Facility)
which
matures
on
February
4,
2022.
This
Global
Credit
Facility
provides
a
source
of
funds
to
the
Borrowers
for
temporary
and
emergency
purposes,
including
the
ability
to
meet
future
unanticipated
or
unusually
large
redemption
requests.
Under
the
terms
of
the
Global
Credit
Facility,
the
Fund
shall,
in
addition
to
interest
charged
on
any
borrowings
made
by
the
Fund
and
other
costs
incurred
by
the
Fund,
pay
its
share
of
fees
and
expenses
incurred
in
connection
with
the
implementation
and
maintenance
of
the
Global
Credit
Facility,
based
upon
its
relative
share
of
the
aggregate
net
assets
of
all
of
the
Borrowers,
including
an
annual
commitment
fee
of
0.15%
based
upon
the
unused
portion
of
the
Global
Credit
Facility.
These
fees
are
reflected
in
other
expenses
in
the
Statement
of
Operations.
During
the
period
ended
June
30,
2021,
the Fund
did
not
use
the
Global
Credit
Facility.
9.
Fair
Value
Measurements
The
Fund
follows
a
fair
value
hierarchy
that
distinguishes
between
market
data
obtained
from
independent
sources
(observable
inputs)
and
the Fund's
own
market
assumptions
(unobservable
inputs).
These
inputs
are
used
in
determining
the
value
of
the
Fund's financial
instruments
and
are
summarized
in
the
following
fair
value
hierarchy:
Level
1
–
quoted
prices
in
active
markets
for
identical
financial
instruments
Level
2
–
other
significant
observable
inputs
(including
quoted
prices
for
similar
financial
instruments,
interest
rates,
prepayment
speed,
credit
risk,
etc.)
Level
3
–
significant
unobservable
inputs
(including
the
Fund's
own
assumptions
in
determining
the
fair
value
of
financial
instruments)
The
input
levels
are
not
necessarily
an
indication
of
the
risk
or
liquidity
associated
with
financial
instruments
at
that
level.
A
summary
of
inputs
used
as
of
June
30,
2021,
in
valuing
the
Fund's
assets
carried
at
fair
value,
is
as
follows:
Level
1
Level
2
Level
3
Total
Templeton
Developing
Markets
Trust
Assets:
Investments
in
Securities:
Common
Stocks
:
Brazil
...............................
$
67,499,173
$
—
$
—
$
67,499,173
Cambodia
............................
—
6,495,458
—
6,495,458
China
...............................
67,473,875
418,493,308
21,322,034
507,289,217
Hungary
.............................
—
11,625,952
—
11,625,952
India
................................
—
115,702,673
—
115,702,673
Indonesia
............................
—
9,847,178
—
9,847,178
Mexico
..............................
26,497,268
—
—
26,497,268
Pakistan
.............................
3,519,381
—
—
3,519,381
Peru
................................
3,119,834
—
—
3,119,834
Philippines
...........................
3,270,236
—
—
3,270,236
Russia
..............................
34,411,385
79,174,278
—
113,585,663
South
Africa
..........................
16,102,194
60,028,867
—
76,131,061
South
Korea
..........................
—
397,895,086
—
397,895,086
Taiwan
..............................
—
291,563,623
—
291,563,623
Thailand
.............................
—
21,899,922
—
21,899,922
United
Kingdom
.......................
—
24,294,294
—
24,294,294
United
States
.........................
10,613,818
—
—
10,613,818
Templeton
Developing
Markets
Trust
Notes
to
Financial
Statements
(unaudited)
32
franklintempleton.com
Semiannual
Report
A
reconciliation
in
which
Level
3
inputs
are
used
in
determining
fair
value
is
presented
when
there
are
significant
Level
3
assets
and/or
liabilities
at
the
beginning
and/or
end
of
the period.
At
June
30,
2021,
the
reconciliation is
as follows:
Significant
unobservable
valuation
inputs
for
material
Level
3 assets
and/or
liabilities and
impact
to
fair
value
as
a
result
of
changes
in
unobservable
valuation
inputs
as
of
June
30,
2021,
are
as
follows:
Level
1
Level
2
Level
3
Total
Templeton
Developing
Markets
Trust
(continued)
Assets:
Investments
in
Securities:
Preferred
Stocks
........................
$
64,572,657
$
—
$
—
$
64,572,657
Escrows
and
Litigation
Trusts
...............
—
—
—
a
—
Short
Term
Investments
...................
33,939,446
—
—
33,939,446
Total
Investments
in
Securities
...........
$331,019,267
$1,437,020,639
b
$21,322,034
$1,789,361,940
a
Includes
securities
determined
to
have
no
value
at
June
30,
2021.
b
Includes
foreign
securities
valued
at
$1,437,020,639,
which
were
categorized
as
Level
2
as
a
result
of
the
application
of
market
level
fair
value
procedures.
See
the
Financial
Instrument
Valuation
note
for
more
information.
Balance
at
Beginning
of
Period
Purchases
Sales
Transfer
Into
Level
3
a
Transfer
Out
of
Level
3
Net
Accretion
(
Amortiza
-
tion
)
Net
Realized
Gain
(Loss)
Net
Unr
ealized
Appreciation
(Depreciation)
Balance
at
End
of
Period
Net
Change
in
Unrealized
Appreciation
(Depreciation)
on
Assets
Held
at
Period
End
a
a
a
a
a
a
a
a
a
a
a
Templeton
Developing
Markets
Trust
Assets:
Investments
in
Securities:
Common
Stocks
:
China
.......
$
—
$
—
$
—
$
31,943,145
$
—
$
—
$
—
$
(10,621,111)
$
21,322,034
$
(13,181,764)
Escrows
and
Litigation
Trusts
.......
—
b
—
—
—
—
—
—
—
—
b
—
Total
Investments
in
Securities
........
$—
$—
$—
$31,943,145
$—
$—
$—
$(10,621,111)
$21,322,034
$(13,181,764)
a
Transferred
into
level
3
as
a
result
of
the
unavailability
of
a
quoted
market
price
in
an
active
market
for
identical
securities
and
other
significant
observable
valuation
inputs.
b
Includes
securities
determined
to
have
no
value.
Description
Fair
Value
at
End
of
Period
Valuation
Technique
Unobservable
Inputs
Amount
Impact
to
Fair
Value
if
Input
Increases
a
Assets:
Investments
in
Securities:
Common
Stock:
China
.....................
$21,322,034
Discount
to
last
traded
price
Discount
40.0%
Decrease
b
All
other
investments
...........
—
c
Total
.......................
$21,322,034
a
Represents
the
directional
change
in
the
fair
value
that
would
result
from
a
significant
and
reasonable
increase
in
the
corresponding
input.
A
significant
and
reasonable
decrease
in
the
input
would
have
the
opposite
effect.
Significant
impacts,
if
any,
to
fair
value
and/or
net
assets
have
been
indicated.
9.
Fair
Value
Measurements
(continued)
Templeton
Developing
Markets
Trust
Notes
to
Financial
Statements
(unaudited)
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10.
New
Accounting
Pronouncements
In
March
2020,
the
Financial
Accounting
Standards
Board
(FASB)
issued
Accounting
Standards
Update
(ASU)
No.
2020-04,
Reference
Rate
Reform
(Topic
848)
–
Facilitation
of
the
Effects
of
Reference
Rate
Reform
on
Financial
Reporting.
In
January
2021,
the
FASB
issued
ASU
No.
2021-01,
with
further
amendments
to
Topic
848.
The
amendments
in
the
ASUs
provide
optional
temporary
accounting
recognition
and financial
reporting
relief
from
the
effect
of
certain
types
of
contract
modifications
due
to
the
planned
discontinuation
of
the
London
Interbank
Offered
Rate
(LIBOR)
and
other
interbank-offered
based
reference
rates
as
of
the
end
of
2021
and
2023. The
ASUs
are
effective
for
certain
reference
rate-related
contract
modifications
that
occur
during
the
period
March
12,
2020
through
December
31,
2022.
Management
has
reviewed
the
requirements
and
believes
the
adoption
of
these
ASUs
will
not
have
a
material
impact
on
the
financial
statements. 
11.
Subsequent
Events
The
Fund
has
evaluated
subsequent
events
through
the
issuance
of
the financial
statements
and
determined
that
no
events
have
occurred
that
require
disclosure
except
for
the
following:
On
July
14,
2021,
the
Board
approved
a
change
to
the
automatic
conversion
feature
for
Class
C
that
will
convert
shareholders’
Class
C
shares
into
Class
A
shares
after
they
have
been
held
for
8
years.
The
change
will
become
effective
August
2,
2021.
Further
details
are
disclosed
in
the
Fund’s
Prospectus.
Abbreviations
b
Represents
a
significant
impact
to
fair
value
and
net
assets.
c
Includes
securities
determined
to
have
no
value
at
June
30,
2021.
Selected
Portfolio
ADR
American
Depositary
Receipt
GDR
Global
Depositary
Receipt
9.
Fair
Value
Measurements
(continued)
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Board
Approval
of
Investment
Management
Agreements
TEMPLETON
DEVELOPING
MARKETS
TRUST
(Fund)
At
a
meeting
held
on
February
23,
2021
(Meeting),
the
Board
of
Trustees
(Board)
of
the
Fund,
including
a
majority
of
the
trustees
who
are
not
“interested
persons”
as
defined
in
the
Investment
Company
Act
of
1940
(Independent
Trustees),
reviewed
and
approved
the
continuance
of
the
investment
management
agreement
between
Templeton
Asset
Management
Ltd.
(TAML)
and
the
Fund,
and
an
investment
sub-advisory
agreement
between
TAML
and
Franklin
Templeton
Investment
Management
Limited
(Sub-
Adviser),
an
affiliate
of
TAML,
on
behalf
of
the
Fund,
for
an
additional
one-year
period
(each
a
Management
Agreement).
The
Independent
Trustees
received
advice
from
and
met
separately
with
Independent
Trustee
counsel
in
considering
whether
to
approve
the
continuation
of
each
Management
Agreement.
TAML
and
the
Sub-Adviser
are
each
referred
to
herein
as
a
Manager.
In
considering
the
continuation
of
each
Management
Agreement,
the
Board
reviewed
and
considered
information
provided
by
each
Manager
at
the
Meeting
and
throughout
the
year
at
meetings
of
the
Board
and
its
committees.
The
Board
also
reviewed
and
considered
information
provided
in
response
to
a
detailed
set
of
requests
for
information
submitted
to
TAML
by
Independent
Trustee
counsel
on
behalf
of
the
Independent
Trustees
in
connection
with
the
annual
contract
renewal
process.
In
addition,
prior
to
the
Meeting,
the
Independent
Trustees
held
a
telephonic
contract
renewal
meeting
at
which
the
Independent
Trustees
conferred
amongst
themselves
and
Independent
Trustee
counsel
about
contract
renewal
matters
and,
in
some
cases,
requested
additional
information
from
the
Managers
relating
to
the
contract.
The
Board
reviewed
and
considered
all
of
the
factors
it
deemed
relevant
in
approving
the
continuance
of
each
Management
Agreement,
including,
but
not
limited
to:
(i)
the
nature,
extent
and
quality
of
the
services
provided
by
each
Manager;
(ii)
the
investment
performance
of
the
Fund;
(iii)
the
costs
of
the
services
provided
and
profits
realized
by
each
Manager
and
its
affiliates
from
the
relationship
with
the
Fund;
(iv)
the
extent
to
which
economies
of
scale
are
realized
as
the
Fund
grows;
and
(v)
whether
fee
levels
reflect
these
economies
of
scale
for
the
benefit
of
Fund
investors.
In
approving
the
continuance
of
each
Management
Agreement,
the
Board,
including
a
majority
of
the
Independent
Trustees,
determined
that
the
terms
of
the
Management
Agreement
are
fair
and
reasonable
and
that
the
continuance
of
such
Management
Agreement
is
in
the
best
interests
of
the
Fund
and
its
shareholders.
While
attention
was
given
to
all
information
furnished,
the
following
discusses
some
primary
factors
relevant
to
the
Board’s
determination.
Nature,
Extent
and
Quality
of
Services
The
Board
reviewed
and
considered
information
regarding
the
nature,
extent
and
quality
of
investment
management
services
provided
by
each
Manager
and
its
affiliates
to
the
Fund
and
its
shareholders.
This
information
included,
among
other
things,
the
qualifications,
background
and
experience
of
the
senior
management
and
investment
personnel
of
each
Manager,
as
well
as
information
on
succession
planning
where
appropriate;
the
structure
of
investment
personnel
compensation;
oversight
of
third-
party
service
providers;
investment
performance
reports
and
related
financial
information
for
the
Fund;
reports
on
expenses
and
shareholder
services;
legal
and
compliance
matters;
risk
controls;
pricing
and
other
services
provided
by
each
Manager
and
its
affiliates;
and
management
fees
charged
by
each
Manager
and
its
affiliates
to
US
funds
and
other
accounts,
including
management’s
explanation
of
differences
among
accounts
where
relevant.
The
Board
also
reviewed
and
considered
an
annual
report
on
payments
made
by
Franklin
Templeton
(FT)
or
the
Fund
to
financial
intermediaries,
as
well
as
a
memorandum
relating
to
third-
party
servicing
arrangements,
which
included
discussion
of
the
changing
distribution
landscape
for
the
Fund.
The
Board
noted
management’s
continuing
efforts
and
expenditures
in
establishing
effective
business
continuity
plans
and
developing
strategies
to
address
areas
of
heightened
concern
in
the
mutual
fund
industry,
such
as
cybersecurity
in
the
current
work-from-home
environment
and
liquidity
risk
management.
The
Board
also
reviewed
and
considered
the
benefits
provided
to
Fund
shareholders
of
investing
in
a
fund
that
is
part
of
the
FT
family
of
funds.
The
Board
noted
the
financial
position
of
Franklin
Resources,
Inc.
(FRI),
the
Managers’
parent,
and
its
commitment
to
the
mutual
fund
business
as
evidenced
by
its
reassessment
of
the
fund
offerings
in
response
to
the
market
environment
and
project
initiatives
and
capital
investments
relating
to
the
services
provided
to
the
Fund
by
the
FT
organization.
The
Board
specifically
noted
FT’s
commitment
to
enhancing
services
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and
controlling
costs,
as
reflected
in
its
outsourcing
of
certain
administrative
functions,
and
growth
opportunities,
as
evidenced
by
its
recent
acquisition
of
the
Legg
Mason
companies.
The
Board
also
noted
FT’s
attention
focused
on
expanding
the
distribution
opportunities
for
all
funds
in
the
FT
family
of
funds.
Following
consideration
of
such
information,
the
Board
was
satisfied
with
the
nature,
extent
and
quality
of
services
provided
by
each
Manager
and
its
affiliates
to
the
Fund
and
its
shareholders.
Fund
Performance
The
Board
reviewed
and
considered
the
performance
results
of
the
Fund
over
various
time
periods
ended
November
30,
2020.
The
Board
considered
the
performance
returns
for
the
Fund
in
comparison
to
the
performance
returns
of
mutual
funds
deemed
comparable
to
the
Fund
included
in
a
universe
(Performance
Universe)
selected
by
Broadridge
Financial
Solutions,
Inc.
(Broadridge),
an
independent
provider
of
investment
company
data.
The
Board
received
a
description
of
the
methodology
used
by
Broadridge
to
select
the
mutual
funds
included
in
a
Performance
Universe.
The
Board
also
reviewed
and
considered
Fund
performance
reports
provided
and
discussions
that
occurred
with
portfolio
managers
at
Board
meetings
throughout
the
year.
A
summary
of
the
Fund’s
performance
results
is
below.
The
Performance
Universe
for
the
Fund
included
the
Fund
and
all
retail
and
institutional
emerging
markets
funds.
The
Board
noted
that
the
Fund’s
annualized
total
return
for
the
one-,
three-,
five-
and
10-year
periods
was
above
the
median
of
its
Performance
Universe.
The
Board
concluded
that
the
Fund’s
performance
was
satisfactory.
Comparative
Fees
and
Expenses
The
Board
reviewed
and
considered
information
regarding
the
Fund’s
actual
total
expense
ratio
and
its
various
components,
including,
as
applicable,
management
fees;
transfer
agent
expenses;
underlying
fund
expenses;
Rule
12b-1
and
non-Rule
12b-1
service
fees;
and
other
non-
management
fees.
The
Board
also
noted
the
quarterly
and
annual
reports
it
receives
on
all
marketing
support
payments
made
by
FT
to
financial
intermediaries.
The
Board
considered
the
actual
total
expense
ratio
and,
separately,
the
contractual
management
fee
rate,
without
the
effect
of
fee
waivers,
if
any
(Management
Rate)
of
the
Fund
in
comparison
to
the
median
expense
ratio
and
median
Management
Rate,
respectively,
of
other
mutual
funds
deemed
comparable
to
and
with
a
similar
expense
structure
to
the
Fund
selected
by
Broadridge
(Expense
Group).
Broadridge
fee
and
expense
data
is
based
upon
information
taken
from
each
fund’s
most
recent
annual
report,
which
reflects
historical
asset
levels
that
may
be
quite
different
from
those
currently
existing,
particularly
in
a
period
of
market
volatility.
While
recognizing
such
inherent
limitation
and
the
fact
that
expense
ratios
and
Management
Rates
generally
increase
as
assets
decline
and
decrease
as
assets
grow,
the
Board
believed
the
independent
analysis
conducted
by
Broadridge
to
be
an
appropriate
measure
of
comparative
fees
and
expenses.
The
Broadridge
Management
Rate
includes
administrative
charges,
and
the
actual
total
expense
ratio,
for
comparative
consistency,
was
shown
for
Class
A
shares
for
the
Fund
and
for
each
other
fund
in
the
Expense
Group.
The
Board
received
a
description
of
the
methodology
used
by
Broadridge
to
select
the
mutual
funds
included
in
an
Expense
Group.
The
Expense
Group
for
the
Fund
included
the
Fund
and
17
other
emerging
markets
funds.
The
Board
noted
that
the
Management
Rate
for
the
Fund
was
above
the
median
of
its
Expense
Group.
The
Board
also
noted
that
the
actual
total
expense
ratio
for
the
Fund
was
below
the
median
and
in
the
second
quintile
of
its
Expense
Group.
The
Board
further
noted
the
Fund’s
first
(best)
and
second
quintile
performance
for
the
one-,
three-
and
five-year
periods
and
the
fee
waiver
from
management
reflected
in
the
Fund’s
actual
total
expense
ratio.
The
Board
also
noted
that
the
Sub-Adviser’s
fees
are
paid
by
TAML
from
the
management
fee
TAML
receives
from
the
Fund.
The
Board
concluded
that
the
Management
Rate
charged
to
the
Fund
is
reasonable.
Profitability
The
Board
reviewed
and
considered
information
regarding
the
profits
realized
by
TAML
and
its
affiliates
in
connection
with
the
operation
of
the
Fund.
In
this
respect,
the
Board
considered
the
Fund
profitability
analysis
provided
that
addresses
the
overall
profitability
of
FT’s
US
fund
business,
as
well
as
its
profits
in
providing
investment
management
and
other
services
to
each
of
the
individual
funds
during
the
12-month
period
ended
September
30,
2020,
being
the
most
recent
fiscal
year-end
for
FRI.
The
Board
noted
that
although
management
continually
makes
refinements
to
its
methodologies
used
in
calculating
profitability
in
response
to
organizational
and
product-related
changes,
the
overall
methodology
has
remained
consistent
with
that
used
in
the
Fund’s
profitability
report
presentations
from
prior
years.
The
Board
further
noted
management’s
representation
that
the
profitability
analysis
excluded
the
impact
of
the
recent
acquisition
of
the
Legg
Mason
companies
and
that
management
expects
to
incorporate
the
legacy
Legg
Mason
companies
into
the
profitability
analysis
beginning
next
year.
The
Board
also
noted
that
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auditor
to
FRI
and
certain
FT
funds,
has
been
engaged
to
periodically
review
and
assess
the
allocation
methodologies
to
be
used
solely
by
the
Fund’s
Board
with
respect
to
the
profitability
analysis.
The
Board
noted
management’s
belief
that
costs
incurred
in
establishing
the
infrastructure
necessary
for
the
type
of
mutual
fund
operations
conducted
by
each
Manager
and
its
affiliates
may
not
be
fully
reflected
in
the
expenses
allocated
to
the
Fund
in
determining
its
profitability,
as
well
as
the
fact
that
the
level
of
profits,
to
a
certain
extent,
reflected
operational
cost
savings
and
efficiencies
initiated
by
management.
As
part
of
this
evaluation,
the
Board
considered
management’s
outsourcing
of
certain
operations,
which
effort
has
required
considerable
up-front
expenditures
by
each
Manager
but,
over
the
long
run
is
expected
to
result
in
greater
efficiencies.
The
Board
also
noted
management’s
expenditures
in
improving
shareholder
services
provided
to
the
Fund,
as
well
as
the
need
to
implement
systems
and
meet
additional
regulatory
and
compliance
requirements
resulting
from
recent
US
Securities
and
Exchange
Commission
and
other
regulatory
requirements.
The
Board
also
considered
the
extent
to
which
each
Manager
and
its
affiliates
might
derive
ancillary
benefits
from
fund
operations,
including
revenues
generated
from
transfer
agent
services,
potential
benefits
resulting
from
personnel
and
systems
enhancements
necessitated
by
fund
growth,
as
well
as
increased
leverage
with
service
providers
and
counterparties.
Based
upon
its
consideration
of
all
these
factors,
the
Board
concluded
that
the
level
of
profits
realized
by
each
Manager
and
its
affiliates
from
providing
services
to
the
Fund
was
not
excessive
in
view
of
the
nature,
extent
and
quality
of
services
provided
to
the
Fund.
Economies
of
Scale
The
Board
reviewed
and
considered
the
extent
to
which
each
Manager
may
realize
economies
of
scale,
if
any,
as
the
Fund
grows
larger
and
whether
the
Fund’s
management
fee
structure
reflects
any
economies
of
scale
for
the
benefit
of
shareholders.
With
respect
to
possible
economies
of
scale,
the
Board
noted
the
existence
of
management
fee
breakpoints,
which
operate
generally
to
share
any
economies
of
scale
with
the
Fund’s
shareholders
by
reducing
the
Fund’s
effective
management
fees
as
the
Fund
grows
in
size.
The
Board
considered
the
Managers’
view
that
any
analyses
of
potential
economies
of
scale
in
managing
a
particular
fund
are
inherently
limited
in
light
of
the
joint
and
common
costs
and
investments
each
Manager
incurs
across
the
FT
family
of
funds
as
a
whole.
The
Board
concluded
that,
to
the
extent
economies
of
scale
may
be
realized
by
each
Manager
and
its
affiliates,
the
Fund’s
management
fee
structure
provided
a
sharing
of
benefits
with
the
Fund
and
its
shareholders
as
the
Fund
grows.
Conclusion
Based
on
its
review,
consideration
and
evaluation
of
all
factors
it
believed
relevant,
including
the
above-described
factors
and
conclusions,
the
Board
unanimously
approved
the
continuation
of
each
Management
Agreement
for
an
additional
one-year
period.
Liquidity
Risk
Management
Program-
Funds
no
HLIM
Each
Fund
has
adopted
and
implemented
a
written
Liquidity
Risk
Management
Program
(the
“LRMP”)
as
required
by
Rule
22e-4
under
the
Investment
Company
Act
of
1940
(the
“Liquidity
Rule”).
The
LRMP
is
designed
to
assess
and
manage
each
Fund’s
liquidity
risk,
which
is
defined
as
the
risk
that
the
Fund
could
not
meet
requests
to
redeem
shares
issued
by
the
Fund
without
significant
dilution
of
remaining
investors’
interests
in
the
Fund.
In
accordance
with
the
Liquidity
Rule,
the
LRMP
includes
policies
and
procedures
that
provide
for:
(1)
assessment,
management,
and
review
(no
less
frequently
than
annually)
of
each
Fund’s
liquidity
risk;
(2)
classification
of
each
Fund’s
portfolio
holdings
into
one
of
four
liquidity
categories
(Highly
Liquid,
Moderately
Liquid,
Less
Liquid,
and
Illiquid);
(3)
for
Funds
that
do
not
primarily
hold
assets
that
are
Highly
Liquid,
establishing
and
maintaining
a
minimum
percentage
of
the
Fund’s
net
assets
in
Highly
Liquid
investments
(called
a
“Highly
Liquid
Investment
Minimum”
or
“HLIM”);
and
(4)
prohibiting
the
Fund’s
acquisition
of
Illiquid
investments
that
would
result
in
the
Fund
holding
more
than
15%
of
its
net
assets
in
Illiquid
assets.
The
LRMP
also
requires
reporting
to
the
Securities
and
Exchange
Commission
(“SEC”)
(on
a
non-public
basis)
and
to
the
Board
if
the
Fund’s
holdings
of
Illiquid
assets
exceed
15%
of
the
Fund’s
net
assets.
Funds
with
HLIMs
must
have
procedures
for
addressing
HLIM
shortfalls,
including
reporting
to
the
Board
and,
with
respect
to
HLIM
shortfalls
lasting
more
than
seven
consecutive
calendar
days,
reporting
to
the
SEC
(on
a
non-public
basis).
The
Director
of
Liquidity
Risk
within
the
Investment
Risk
Management
Group
(the
“IRMG”)
is
the
appointed
Administrator
of
the
LRMP.
The
IRMG
maintains
the
Investment
Liquidity
Committee
(the
“ILC”)
to
provide
oversight
and
administration
of
policies
and
procedures
governing
liquidity
risk
management
for
FT
products
and
Templeton
Developing
Markets
Trust
Shareholder
Information
37
franklintempleton.com
Semiannual
Report
portfolios.
The
ILC
includes
representatives
from
Franklin
Templeton’s
Risk,
Trading,
Global
Compliance,
Investment
Compliance,
Investment
Operations,
Valuation
Committee,
Product
Management
and
Global
Product
Strategy.
In
assessing
and
managing
each
Fund’s
liquidity
risk,
the
ILC
considers,
as
relevant,
a
variety
of
factors,
including
the
Fund’s
investment
strategy
and
the
liquidity
of
its
portfolio
investments
during
both
normal
and
reasonably
foreseeable
stressed
conditions;
its
short
and
long-term
cash
flow
projections;
and
its
cash
holdings
and
access
to
other
funding
sources
including
the
Funds’
interfund
lending
facility
and
line
of
credit.
Classification
of
the
Fund’s
portfolio
holdings
in
the
four
liquidity
categories
is
based
on
the
number
of
days
it
is
reasonably
expected
to
take
to
convert
the
investment
to
cash
(for
Highly
Liquid
and
Moderately
Liquid
holdings)
or
sell
or
dispose
of
the
investment
(for
Less
Liquid
and
Illiquid
investments),
in
current
market
conditions
without
significantly
changing
the
investment’s
market
value.
Each
Fund
primarily
holds
liquid
assets
that
are
defined
under
the
Liquidity
Rule
as
"Highly
Liquid
Investments,"
and
therefore
is
not
required
to
establish
an
HLIM.
Highly
Liquid
Investments
are
defined
as
cash
and
any
investment
reasonably
expected
to
be
convertible
to
cash
in
current
market
conditions
in
three
business
days
or
less
without
the
conversion
to
cash
significantly
changing
the
market
value
of
the
investment.
At
meetings
of
the
Funds’
Board
of
Trustees
held
in
May
2021,
the
Program
Administrator
provided
a
written
report
to
the
Board
addressing
the
adequacy
and
effectiveness
of
the
program
for
the
year
ended
December
31,
2020.
The
Program
Administrator
report
concluded
that
(i.)
the
LRMP,
as
adopted
and
implemented,
remains
reasonably
designed
to
assess
and
manage
each
Fund’s
liquidity
risk;
(ii.)
the
LRMP,
including
the
Highly
Liquid
Investment
Minimum
(“HLIM”)
where
applicable,
was
implemented
and
operated
effectively
to
achieve
the
goal
of
assessing
and
managing
each
Fund’s
liquidity
risk;
and
(iii.)
each
Fund
was
able
to
meet
requests
for
redemption
without
significant
dilution
of
remaining
investors’
interests
in
the
Fund.
Proxy
Voting
Policies
and
Procedures
The
Trust’s
investment
manager
has
established
Proxy
Voting
Policies
and
Procedures
(Policies)
that
the
Trust
uses
to
determine
how
to
vote
proxies
relating
to
portfolio
securities.
Shareholders
may
view
the
Trust’s
complete
Policies
online
at
franklintempleton.com.
Alternatively,
shareholders
may
request
copies
of
the
Policies
free
of
charge
by
calling
the
Proxy
Group
collect
at
(954)
527-
7678
or
by
sending
a
written
request
to:
Franklin
Templeton
Companies,
LLC,
300
S.E.
2nd
Street,
Fort
Lauderdale,
FL
33301,
Attention:
Proxy
Group.
Copies
of
the
Trust’s
proxy
voting
records
are
also
made
available
online
at
franklintempleton.com
and
posted
on
the
U.S.
Securities
and
Exchange
Commission’s
website
at
sec.gov
and
reflect
the
most
recent
12-month
period
ended
June
30.
Quarterly
Statement
of
Investments
The
Trust
files
a
complete
statement
of
investments
with
the
U.S.
Securities
and
Exchange
Commission
for
the
first
and
third
quarters
for
each
fiscal
year
as
an
exhibit
to
its
report
on
Form
N-PORT.
Shareholders
may
view
the
filed
Form
N-PORT
by
visiting
the
Commission’s
website
at
sec.
gov.
The
filed
form
may
also
be
viewed
and
copied
at
the
Commission’s
Public
Reference
Room
in
Washington,
DC.
Information
regarding
the
operations
of
the
Public
Reference
Room
may
be
obtained
by
calling
(800)
SEC-0330.
Householding
of
Reports
and
Prospectuses
You
will
receive,
or
receive
notice
of
the
availability
of,
the
Fund’s
financial
reports
every
six
months.
In
addition,
you
will
receive
as
an
annual
updated
summary
prospectus
(detail
prospectus
available
upon
request).
To
reduce
Fund
expenses,
we
try
to
identify
related
shareholders
in
a
household
and
send
only
one
copy
of
the
financial
reports
(to
the
extent
received
by
mail)
and
summary
prospectus.
This
process,
called
“householding,”
will
continue
indefinitely
unless
you
instruct
us
otherwise.
If
you
prefer
not
to
have
these
documents
householded,
please
call
us
at
(800)
632-2301.
At
any
time
you
may
view
current
prospectuses/
summary
prospectuses
and
financial
reports
on
our
website.
If
you
choose,
you
may
receive
these
documents
through
electronic
delivery.
711
S
08/21
©
2021
Franklin
Templeton
Investments.
All
rights
reserved.
Authorized
for
distribution
only
when
accompanied
or
preceded
by
a
summary
prospectus
and/or
prospectus.
Investors
should
carefully
consider
a
fund’s
investment
goals,
risks,
charges
and
expenses
before
investing.
A
prospectus
contains
this
and
other
information;
please
read
it
carefully
before
investing.
To
help
ensure
we
provide
you
with
quality
service,
all
calls
to
and
from
our
service
areas
are
monitored
and/or
recorded.
Semiannual
Report
and
Shareholder
Letter
Templeton
Developing
Markets
Trust
Investment
Manager
Distributor
Shareholder
Services
Templeton
Asset
Management
Ltd.
Franklin
Distributors,
LLC
(800)
DIAL
BEN
®
/
342-5236
franklintempleton.com
(800)
632-2301
Item 2. Code of Ethics.
 
(a) The Registrant has adopted a code of ethics that applies to its principal executive officers and principal financial and accounting officer. 
 
(c) N/A
 
(d) N/A
 
(f) Pursuant to Item 13(a)(1), the Registrant is attaching as an exhibit a copy of its code of ethics that applies to its principal executive officers and principal financial and accounting officer.
 
 
Item 3. Audit Committee Financial Expert.
 
(a)(1) The Registrant has an audit committee financial expert serving on its audit committee.
 
(2)
The audit committee financial expert are Ann Torre Bates and David W. Niemiec and they are "independent" as defined under the relevant Securities and Exchange Commission Rules and Releases.
 
 
Item 4.
Principal Accountant Fees and Services. N/A
 
Item 5. Audit Committee
of Listed Registrants.
  N/A
 
 
Item 6. Schedule of Investments. N/A
 
 
Item 7
. Disclosure of Proxy Voting Policies and Procedures for
Closed-End Management Investment Companies.  N/A
 
 
Item 8. Portfolio Managers of Closed-End Management Investment Companies.  N/A
 
 
Item 9
. Purchases of Equity Securities by Closed-End Management Investment Company and Affiliated Purchasers.  N/A
 
 
Item 10
. Submission of Matters to a Vote of Security Holders.
 
There have been no changes to the procedures by which shareholders may recommend nominees to the Registrant's Board of Trustees that would require disclosure herein.
 
Item 11. Controls and Procedures.
 
(a) Evaluation of Disclosure Controls and Procedures. The Registrant maintains disclosure controls and procedures that are designed to provide reasonable assurance that information required to be disclosed in the Registrant’s filings under the Securities Exchange Act of 1934, as amended, 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 Shareholder Report on Form N-CSR, 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 changes in the Registrant’s internal control over financial reporting that occurred during the period covered by this report that has materially affected, or is reasonably likely to materially affect the internal control over financial reporting.
 
Item 12. Disclosure of Securities Lending Activities for Closed-End Management Investment Company.    
                               
N/A
 
 
Item 13. Exhibits.
 
(a)(1)
Code of Ethics
 
 
(a)(2)
Certifications pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 of
Matthew T. Hinkle
, Chief Executive Officer - Finance and Administration, and
Robert G. Kubilis
, Chief Financial Officer and Chief Accounting Officer
 
 
(b)
Certifications pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 of
Matthew T. Hinkle
, Chief Executive Officer - Finance and Administration, and
Robert G. Kubilis
, Chief Financial Officer and Chief Accounting 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 DEVELOPING MARKETS TRUST
 
 
 
By S\Matthew T. Hinkle__________________________
     Matthew T. Hinkle
     Chief Executive Officer - Finance and Administration
Date August 25, 2021
 
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\Matthew T. Hinkle____________________________
     Matthew T. Hinkle
     Chief Executive Officer - Finance and Administration
Date August 25, 2021
 
 
By S\Robert G. Kubilis_______________________________
     Robert G. Kubilis
     Chief Financial Officer and Chief Accounting Officer
Date August 25, 2021