-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, UbRtLsTu+nIfXAQmZDNzsSrD3hcQjcqdAcVyyuXfMPhvHNnoQVlAQt3oC43j54QX vkHG0smeGzBFY4lAasXzTA== 0000919893-04-000013.txt : 20041129 0000919893-04-000013.hdr.sgml : 20041129 20041129150904 ACCESSION NUMBER: 0000919893-04-000013 CONFORMED SUBMISSION TYPE: N-Q PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 20040930 FILED AS OF DATE: 20041129 DATE AS OF CHANGE: 20041129 EFFECTIVENESS DATE: 20041129 FILER: COMPANY DATA: COMPANY CONFORMED NAME: TEMPLETON DRAGON FUND INC CENTRAL INDEX KEY: 0000919893 IRS NUMBER: 650473580 STATE OF INCORPORATION: MD FISCAL YEAR END: 0930 FILING VALUES: FORM TYPE: N-Q SEC ACT: 1940 Act SEC FILE NUMBER: 811-08394 FILM NUMBER: 041171229 BUSINESS ADDRESS: STREET 1: 700 CENTRAL AVE CITY: ST PETERSBURG STATE: FL ZIP: 33701 BUSINESS PHONE: 8138238712 N-Q 1 tdf-nq904.txt TEMP DRAGON FUND QUARTERLY FILING PE 9/30/04 FORM N-Q QUARTERLY SCHEDULE OF PORTFOLIO HOLDINGS OF REGISTERED MANAGEMENT INVESTMENT COMPANIES Investment Company Act file number 811-08874 --------- TEMPLETON DRAGON FUND, INC. -------------------------------------------------- (Exact name of registrant as specified in charter) 500 EAST BROWARD BLVD., SUITE 2100, FORT LAUDERDALE, FL 33394-3091 -------------------------------------------------------------------- (Address of principal executive offices) (Zip code) MURRAY L. SIMPSON, 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: 9/30/04 -------- ITEM 1. SCHEDULE OF INVESTMENTS. TEMPLETON DRAGON FUND, INC. QUARTERLY STATEMENT OF INVESTMENTS SEPTEMBER 30, 2004 - -------------------------------------------------------------------------------- CONTENTS Statement of Investments .................................................. 3 Notes to Statement of Investments ......................................... 6 [LOGO](R) FRANKLIN(R) TEMPLETON(R) INVESTMENTS Franklin o TEMPLETON o Mutual Series Quarterly Statement of Investments | 1 This page intentionally left blank. TEMPLETON DRAGON FUND, INC. STATEMENT OF INVESTMENTS, SEPTEMBER 30, 2004 (UNAUDITED)
- -------------------------------------------------------------------------------------------------- COUNTRY SHARES VALUE - -------------------------------------------------------------------------------------------------- COMMON STOCKS 96.0% AIR FREIGHT & LOGISTICS .1% Sinotrans Ltd. ................................ China 2,342,000 $ 810,983 ----------- AUTO COMPONENTS 1.7% Cheng Shin Rubber Industry Co. Ltd. ........... Taiwan 9,409,160 11,522,551 ----------- BEVERAGES .1% Kingway Brewery Holdings Ltd. ................. China 2,094,000 644,539 ----------- CAPITAL MARKETS 1.1% (a)Yuanta Core Pacific Securities Co. ............ Taiwan 10,819,067 7,643,733 ----------- COMMERCIAL BANKS 8.5% Chinatrust Financial Holding Co. Ltd. ......... Taiwan 8,763,477 9,441,956 HSBC Holdings PLC ............................. United Kingdom 1,366,309 21,728,610 Mega Financial Holdings Co. Ltd. .............. Taiwan 27,217,000 17,145,829 Sinopac Holdings .............................. Taiwan 16,506,737 8,649,394 ----------- 56,965,789 ----------- COMMUNICATIONS EQUIPMENT .7% D-Link Corp. .................................. Taiwan 2,052,309 2,253,492 (a)TCL Communication Technology Holdings ......... China 19,584,000 2,762,838 ----------- 5,016,330 ----------- COMPUTERS & PERIPHERALS 5.5% Acer Inc. ..................................... Taiwan 12,232,022 16,563,821 Advantech Co. Ltd. ............................ Taiwan 2,929,282 5,993,085 Asustek Computer Inc. ......................... Taiwan 2,883,512 6,323,864 Lenovo Group Ltd. ............................. China 7,604,000 2,559,957 Lite-on Technology Corp. ...................... Taiwan 5,776,100 5,390,120 ----------- 36,830,847 ----------- CONSTRUCTION MATERIALS 4.6% Anhui Conch Cement Co. Ltd. ................... China 1,306,000 1,867,581 Cheung Kong Infrastructure Holdings Ltd. ...... Hong Kong 11,060,000 28,581,927 (a)China Resources Cement ........................ China 872,000 212,486 ----------- 30,661,994 ----------- DISTRIBUTORS 2.9% China Resources Enterprise Ltd. ............... China 12,628,000 16,438,491 Test-Rite International Co. Ltd. .............. Taiwan 5,126,125 2,927,490 ----------- 19,365,981 ----------- DIVERSIFIED TELECOMMUNICATION SERVICES .7% China Telecom Corp. Ltd., H ................... China 14,280,000 4,624,352 ----------- ELECTRIC UTILITIES 4.2% Datang International Power Generation Co. Ltd. China 26,502,000 21,583,094 Guangdong Electric Power Development Co Ltd., B China 4,371,100 2,668,450 Huadian Power International Corp. Ltd., H ..... China 3,978,000 1,300,967 Huaneng Power International Inc., H ........... China 3,388,000 2,737,444 ----------- 28,289,955 ----------- ELECTRICAL EQUIPMENT .5% Phoenixtec Power Co. Ltd. ..................... Taiwan 3,632,945 3,475,735 -----------
Quarterly Statement of Investments | 3 TEMPLETON DRAGON FUND, INC. STATEMENT OF INVESTMENTS, SEPTEMBER 30, 2004 (UNAUDITED) (CONTINUED)
- -------------------------------------------------------------------------------------------------- COUNTRY SHARES VALUE - -------------------------------------------------------------------------------------------------- COMMON STOCKS (CONT.) ELECTRONIC EQUIPMENT & INSTRUMENTS 2.4% Delta Electronics Inc. ........................ Taiwan 11,788,952 $ 16,484,404 ------------ FOOD & STAPLES RETAILING 14.9% Dairy Farm International Holdings Ltd. ........ Singapore 39,911,478 100,177,810 ------------ FOOD PRODUCTS 1.2% UNI-President Enterprises Corp. ............... Taiwan 16,069,030 7,757,789 ------------ HOTELS RESTAURANTS & LEISURE 2.3% Hong Kong & Shanghai Hotels Ltd. .............. Hong Kong 21,534,000 15,742,036 ------------ HOUSEHOLD DURABLES 3.2% TCL International Holdings Inc. ............... China 48,960,000 14,599,087 Tsann Kuen Enterprise Co. Ltd. ................ Taiwan 5,655,580 6,792,689 ------------ 21,391,776 ------------ INDUSTRIAL CONGLOMERATES 4.6% Beijing Enterprises Holdings Ltd. ............. China 3,058,000 3,706,215 CITIC Pacific Ltd. ............................ China 7,081,000 18,208,338 Shanghai Industrial Holdings Ltd. ............. China 4,954,000 9,022,059 ------------ 30,936,612 ------------ IT SERVICES .3% Travelsky Technology Ltd., H .................. China 2,837,000 2,328,631 ------------ LEISURE EQUIPMENT & PRODUCTS .2% Altek Corp. ................................... Taiwan 2,571,840 1,317,339 ------------ MACHINERY 2.4% China International Marine Containers ......... China 7,773,186 14,096,451 Yung Tay Engineering Co. Ltd. ................. Taiwan 3,958,000 2,039,005 ------------ 16,135,456 ------------ METALS & MINING .1% Aluminum Corp. of China Ltd., H ............... China 1,028,000 665,803 China Oriental Group Co. Ltd., 144A ........... China 422,000 82,266 ------------ 748,069 ------------ OFFICE ELECTRONICS .1% Kinpo Electronics Inc. ........................ Taiwan 1,454,000 612,075 ------------ OIL & GAS 9.0% China Petroleum & Chemical Corp., H ........... China 109,224,000 44,475,735 PetroChina Co. Ltd., H ........................ China 30,780,000 16,481,109 ------------ 60,956,844 ------------ REAL ESTATE 10.4% Cheung Kong Holdings Ltd. ..................... Hong Kong 2,575,000 22,043,971 Hang Lung Group Ltd. .......................... Hong Kong 19,441,042 30,418,703 Henderson China Holdings Ltd. ................. China 9,215,000 4,490,971 Henderson Investment Ltd. ..................... Hong Kong 7,485,000 9,695,596 Hong Kong Land Holdings Ltd. .................. Hong Kong 1,904,000 3,750,880 ------------ 70,400,121 ------------
4 | Quarterly Statement of Investments TEMPLETON DRAGON FUND, INC. STATEMENT OF INVESTMENTS, SEPTEMBER 30, 2004 (UNAUDITED) (CONTINUED)
- ------------------------------------------------------------------------------------------------------------------- COUNTRY SHARES VALUE - ------------------------------------------------------------------------------------------------------------------- COMMON STOCKS (CONT.) SEMICONDUCTORS & SEMICONDUCTOR EQUIPMENT 4.0% Elan Microelectronics Corp. ................................... Taiwan 3,517,396 $ 2,464,352 Faraday Technology Corp. ...................................... Taiwan 432,259 636,236 Princeton Technology Corp. .................................... Taiwan 546,600 452,148 Samsung Electronics Co. Ltd. .................................. South Korea 10,780 4,287,660 Siliconware Precision Industries Co. Ltd. ..................... Taiwan 4,340,000 2,976,803 Sunplus Technology Co. Ltd. ................................... Taiwan 6,264,390 8,906,978 Taiwan Semiconductor Manufacturing Co. ........................ Taiwan 5,844,000 7,449,079 ------------ 27,173,256 ------------ TEXTILES APPAREL & LUXURY GOODS .6% Tack Fat Group International Ltd. ............................. Hong Kong 26,080,000 2,040,322 Tainan Enterprises Co., Ltd. .................................. Taiwan 1,846,000 2,309,538 ------------ 4,349,860 ------------ TRANSPORTATION INFRASTRUCTURE 3.0% China Merchants Holdings (International) Co. Ltd. ............. China 4,878,000 7,350,908 Cosco Pacific Ltd. ............................................ China 6,678,000 11,133,997 Zhejiang Expressway Co. Ltd., H ............................... China 2,426,000 1,586,800 ------------ 20,071,705 ------------ WIRELESS TELECOMMUNICATION SERVICES 6.7% China Mobile (Hong Kong) Ltd. ................................. China 12,576,000 38,225,414 Taiwan Cellular Corp. ......................................... Taiwan 7,047,764 6,763,530 ------------ 44,988,944 ------------ TOTAL COMMON STOCKS (COST $448,977,016) ....................... 647,425,516 ------------ SHORT TERM INVESTMENTS (COST $24,521,521) 3.6% (b)Franklin Institutional Fiduciary Trust Money Market Portfolio . United States 24,521,521 24,521,521 ------------ TOTAL INVESTMENTS (COST $473,498,537) 99.6% ................... 671,947,037 OTHER ASSETS, LESS LIABILITIES .4% ............................ 2,371,361 ------------ NET ASSETS 100.0% ............................................. $674,318,398 ============
(a) Non-income producing. (b) The Franklin Institutional Fiduciary Trust Money Market Portfolio is managed by an affiliate of the fund's investment manager. Quarterly Statement of Investments | See Notes to Statement of Investments. | 5 TEMPLETON DRAGON FUND, INC. NOTES TO STATEMENT OF INVESTMENTS (UNAUDITED) Templeton Dragon Fund, Inc. (the Fund), is registered under the Investment Company Act of 1940 as a closed-end, non-diversified investment company. 1. INCOME TAXES At September 30, 2004, the net unrealized appreciation (depreciation) based on the cost of investments for income tax purposes was as follows: Cost of investments ..................................... $ 475,003,236 ------------- Unrealized appreciation ................................. $ 210,984,135 Unrealized depreciation ................................. (14,040,334) ------------- Net unrealized appreciation (depreciation) .............. $ 196,943,801 ============= For information regarding the Fund's policy regarding valuation of investments and other significant accounting policies, please refer to the Fund's most recent semiannual or annual shareholder report. 6 | Quarterly Statement of Investments ITEM 2. CONTROLS AND PROCEDURES. (a) EVALUATION OF DISCLOSURE CONTROLS AND PROCEDURES. The Registrant maintains disclosure controls and procedures that are designed to ensure that information required to be disclosed in the Registrant's filings under the Securities Exchange Act of 1934 and the Investment Company Act of 1940 is recorded, processed, summarized and reported within the periods specified in the rules and forms of the Securities and Exchange Commission. Such information is accumulated and communicated to the Registrant's management, including its principal executive officer and principal financial officer, as appropriate, to allow timely decisions regarding required disclosure. The Registrant's management, including the principal executive officer and the principal financial officer, recognizes that any set of controls and procedures, no matter how well designed and operated, can provide only reasonable assurance of achieving the desired control objectives. Within 90 days prior to the filing date of this Quarterly Schedule of Portfolio Holdings on Form N-Q, the Registrant had carried out an evaluation, under the supervision and with the participation of the Registrant's management, including the Registrant's principal executive officer and the Registrant's principal financial officer, of the effectiveness of the design and operation of the Registrant's disclosure controls and procedures. Based on such evaluation, the Registrant's principal executive officer and principal financial officer concluded that the Registrant's disclosure controls and procedures are effective. (b) CHANGES IN INTERNAL CONTROLS. There have been no significant changes in the Registrant's internal controls or in other factors that could significantly affect the internal controls subsequent to the date of their evaluation in connection with the preparation of this Quarterly Schedule of Portfolio Holdings on Form N-Q. ITEM 3. EXHIBITS. (a) Certifications pursuant to Section 30a-2 of the Investment Company Act of 1940 of Jimmy D. Gambill, Chief Executive Officer - Finance and Administration, and Galen G. Vetter, Chief Financial Officer. SIGNATURES Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized. TEMPLETON DRAGON FUND, INC. By /s/JIMMY D. GAMBILL ----------------------- Jimmy D. Gambill Chief Executive Officer - Finance and Administration Date November 29, 2004 Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated. By /s/JIMMY D. GAMBILL ----------------------- Jimmy D. Gambill Chief Executive Officer - Finance and Administration Date November 29, 2004 By /s/GALEN G. VETTER ------------------------------ Galen G. Vetter Chief Financial Officer Date November 29, 2004 EX-99.CERT 2 d61436_ex99-cert.txt CEO & CFO CERTIFICATIONS PURSUANT SECTION 30A-2 Exhibit 3(a) I, Jimmy D. Gambill, certify that: 1. I have reviewed this report on Form N-Q of Templeton Dragon Fund; 2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; 3. Based on my knowledge, the schedules of investments included in this report fairly present in all material respects the investments of the registrant as of the end of the fiscal quarter for which the report is filed; 4. The registrant's other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940) and internal control over financial reporting (as defined in Rule 30a-3(d) under the Investment Company Act of 1940) for the registrant and have: (a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; (b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; (c) Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of a date within 90 days prior to the filing date of this report, based on such evaluation; and (d) Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and 5. The registrant's other certifying officer(s) and I have disclosed to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions): (a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize, and report financial information; and (b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting. November 18, 2004 /s/JIMMY D. GAMBILL Jimmy D. Gambill Chief Executive Officer - Finance and Administration I, Galen G. Vetter, certify that: 1. I have reviewed this report on Form N-Q of Templeton Dragon Fund; 2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; 3. Based on my knowledge, the schedules of investments included in this report fairly present in all material respects the investments of the registrant as of the end of the fiscal quarter for which the report is filed; 4. The registrant's other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940) and internal control over financial reporting (as defined in Rule 30a-3(d) under the Investment Company Act of 1940) for the registrant and have: (a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; (b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; (c) Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of a date within 90 days prior to the filing date of this report, based on such evaluation; and (d) Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and 5. The registrant's other certifying officer(s) and I have disclosed to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions): (a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize, and report financial information; and (b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting. November 18, 2004 /s/GALEN G. VETTER Galen G. Vetter Chief Financial Officer -----END PRIVACY-ENHANCED MESSAGE-----