Templeton Developing Markets Trust Class C NCSR Certified annual shareholder report (management investment company)

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, DC 20549

FORMN-CSR

CERTIFIED SHAREHOLDER REPORT OF REGISTERED

MANAGEMENT INVESTMENT COMPANIES

Investment Company Act file number811-06378

Templeton Developing Markets Trust

(Exact name of registrant as specified in charter)

300 S.E. 2^nd 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: 12/31/18

Item 1.

Reports to Stockholders.

Annual Report

and Shareholder Letter

December 31, 2018

Templeton Developing Markets Trust

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Sign up for electronic delivery at franklintempleton.com/edelivery

Internet Delivery of Fund Reports Unless You Request Paper Copies: Effective January 1, 2021, as permitted by the SEC, paper copies of the Fund’s shareholder reports will no longer be sent by mail, unless you specifically request them from the Fund or your financial intermediary. Instead, the reports will be made available on a website, and you will be notified by mail each time a report is posted and provided with a website link to access the report.

If you already elected to receive shareholder reports electronically, you will not be affected by this change and you need not take any action. If you have not signed up for electronic delivery, we would encourage you to join fellow shareholders who have. You may elect to receive shareholder reports and other communications electronically from the Fund by calling (800)632-2301 or by contacting your financial intermediary.

You may elect to continue to receive paper copies of all your future shareholder reports free of charge by contacting your financial intermediary or, if you invest directly with a Fund, calling (800)632-2301 to let the Fund know of your request. Your election to receive reports in paper will apply to all funds held in your account.

Franklin Templeton

Successful investing begins with ambition. And achievement only comes when you reach for it. That’s why we continually strive to deliver better outcomes for investors. No matter what your goals are, our deep, global investment expertise allows us to offer solutions that can help.

During our more than 70 years of experience, we’ve managed through all kinds of markets—up, down and those in between. We’re always preparing for what may come next. It’s because of this, combined with our strength as one of the world’s largest asset managers that we’ve earned the trust of millions of investors around the world.

Dear Shareholder:

During the 12 months ended December 31, 2018, the global economy continued to expand, with economies in emerging markets generally growing faster than those in developed markets.

China’s economy grew at a slower pace amid lower industrial production growth and the apparent effects of U.S.-China trade tensions and tariffs. In 2018’s third quarter, economic growth slowed in India and Russia, while growth accelerated in Brazil and Poland and Mexico’s economy resumed growth. Despite growth in a number of emerging market economies, emerging market equities were hurt by investor concerns about global economic growth, rising U.S. interest rates, heightened U.S.-China trade issues and contagion concerns about economic crises in Turkey and Argentina. These concerns were mitigated by a U.S.-China trade truce nearperiod-end and signals the U.S. Federal Reserve could slow its pace of interest-rate increases. In this environment, emerging market stocks had a-14.25% total return, as measured by the MSCI Emerging Markets Index, for the12-month period ended December 31, 2018.¹

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 developed more than

60 years ago. We continue to recommend investors consult their financial advisors 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 annual 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,

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Manraj S. Sekhon, CFA

Chief Investment Officer

Franklin Templeton Emerging Markets Equity

This letter reflects our analysis and opinions as of December 31, 2018, 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.

1. Source: Morningstar.

See www.franklintempletondatasources.com for additional data provider information.


Not FDIC Insured		\|		May Lose Value		\|		No Bank Guarantee



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Contents

Annual Report



Templeton Developing Markets Trust			3

Performance Summary			7

Your Fund’s Expenses			10

Financial Highlights and Statement of Investments			11

Financial Statements			20

Notes to Financial Statements			24

Report of Independent Registered Public Accounting Firm			33

Tax Information			34

Board Members and Officers			35

Shareholder Information			40

Visitfranklintempleton.comfor fund updates, to access your account, or to find helpful financial planning tools.



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Annual Report

Templeton Developing Markets Trust

This annual report for Templeton Developing Markets Trust covers the fiscal year ended December 31, 2018.

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 had a-16.20% cumulative total return for the 12 months under review. In comparison, the MSCI Emerging Markets (EM) Index had a-14.25% total return, and the Standard & Poor’s^®/International Finance Corporation Investable Composite Index had a-14.22% total return for the same period.¹ The indexes measure global emerging market stock performance. 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 recentmonth-end performance, go tofranklintempleton.comor call(800)342-5236.

Economic and Market Overview

Emerging market economies in general continued to grow faster than developed market economies during the 12 months under review. China’s economy continued to grow in 2018’s third quarter, though at its slowest annual rate since 2009. During 2018’s first three quarters, China saw decreased annual growth rates across sectors, including industrial production,

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services, fixed-asset investment, and exports and imports, amid indications that trade tensions with the U.S. negatively affected the economy. India’s annual growth rate in 2018’s third quarter moderated from the prior quarter, as high oil prices and a depreciated rupee hurt consumer spending. Growth in financial services and manufacturing also slowed. Russia’s economy grew in 2018’s third quarter, though at a slower annual growth rate than the prior quarter as the positive effects of the summer World Cup faded. Growth slowed for accommodations and food services, transportation, and information and communication. Brazil’s economy expanded at a faster annual rate in the third quarter. The country’s exports significantly rebounded following a nationwide trucker’s strike in May. Household spending growth slowed, while growth accelerated in the services, transportation and financial services sectors. Among other emerging markets, the economies of Mexico, Poland and Turkey continued to grow.

Monetary policies varied among emerging market central banks. Brazil’s central bank cut its benchmark interest rate twice during the12-month period, while some, including those of India, Turkey and the Czech Republic, raised their benchmark interest rates multiple times. Mexico’s central bank raised its benchmark interest rate four times to a10-year high,

1. Source: Morningstar.

The indexes are unmanaged and include reinvestment of any income or distributions. They do 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.

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 16.



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citing global economic and domestic political uncertainties. Russia’s central bank changed its benchmark interest rate several times, but atperiod-end the rate was the same as at the beginning of the period. South Korea’s and Chile’s central banks raised their benchmark interest rates during the period, while Taiwan’s central bank left its benchmark interest rate unchanged. The People’s Bank of China left its benchmark interest rate unchanged during the period, but it took measures to improve financial liquidity to mitigate the negative effects of the U.S.-China trade dispute and support economic growth.

Emerging market stocks declined during the 12 months under review due to concerns about global economic growth, rising U.S. interest rates, a strengthening U.S. dollar and heightened international trade tensions, particularly between the U.S. and China. Contagion concerns about economic crises in Turkey and Argentina also weighed on investor sentiment. Emerging market equities reversed some of their losses nearperiod-end, amid a trade truce between the U.S. and China and signals the U.S. Federal Reserve would slow its pace of interest rate increases. European stocks were pressured by political and economic instability in the region, particularly in Italy and Turkey. Asian equities were hurt by declines in technology stocks and increased tensions in the Korean peninsula, though tensions eased later in the year. In this environment, emerging market stocks, as measured by the MSCI EM Index, had a-14.25% total return for the 12 months ended December 31, 2018.¹

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 and cash flow potential. 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 corporate governance behavior as well as its position in its sector, the economic framework and political environment.

Manager’s Discussion

During the period under review, key detractors from absolute performance included Brilliance China Automotive Holdings, Samsung Electronics and Naspers.

2. Not a Fund holding.

Top 10 Countries


12/31/18

	% of Total Net Assets
China		20.7%
South Korea		16.7%
Taiwan		10.9%
India		8.2%
South Africa		7.3%
Brazil		7.0%
Russia		6.8%
Thailand		3.5%
Indonesia		3.4%
U.K.		3.3%

Brilliance China Automotive manufactures and sells automobiles for the Chinese domestic market, predominantly through its joint venture with BMW,² the German luxury car maker. BMW’s plans to increase its joint venture stake to a majority share was poorly received by investors, who expressed concerns about some aspects of the proposed deal terms, Brilliance China’s reduced stake and the potential impact on earnings. The stock has since corrected, and we believe that the increased clarity on the JV agreement removes an overhang that had been weighing on the stock price since China’s decision to relax foreign ownership limits earlier in the year. In our opinion, luxury vehicle sales should continue to increase due to ongoing and growing demand for premium brands.

Samsung Electronics is a South Korea-based consumer electronics and semiconductor manufacturer. It is one of the world’s largest smartphone and memory chip producers as well as a key supplier of organic light-emitting diode displays. Shares of the export-focused company were caught in the crosshairs of mounting global trade tensions. While the company reported solid third-quarter earnings, investor sentiment was hurt by a decline in memory chip prices, an increase in inventory levels and a slowdown in smartphone demand.

Naspers is an internet and media group based in South Africa. It is a leading provider ofpay-television services insub-Saharan Africa. It also has sizeable investments in some of the world’s leading technology companies, including China-based Tencent Holdings and Russia-based Mail.ru. Shares of Tencent retreated due to regulatory uncertainty in China’s online gaming industry, which impacted Naspers’ share price. Naspers’ plan to spin off itspay-television business



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lent some support to the stock. Information technology (IT) stocks in general corrected during the period as pessimism about future global growth, the U.S.-China trade conflict, rising U.S. interest rates and a strengthening U.S. dollar led investors to switch to more defensive stocks.³ Improving market sentiment late in the year, however, led shares to recover from theiryear-low.

In contrast, key contributors to absolute performance during the reporting period were FILA Korea, LUKOIL and Banco Bradesco.

Fila Korea is one of South Korea’s leading sportswear companies. It also licenses the Fila brand around the world and owns a stake in U.S. golf product manufacturer Acushnet². Shares of Fila Korea advanced as the company’s efforts to revitalize its domestic business and expand in China helped improve quarterly earnings. The company also reported significantly better-than-expected second- and third-quarter earnings growth driven by strong sales growth globally and improved sales in high-margin products. Steady financial results from Acushnet also buoyed the stock.

Lukoil is a Russian energy company involved primarily in the exploration, production, marketing and refining of oil andoil-related products. The company holds some of the largest reserves in the world. Rebounding oil prices benefited company shares, significantly boosting sales and earnings for the second and third quarters. LUKOIL also started a large share buyback program and approved the cancellation of a portion of its treasury shares, with both moves aimed at improving shareholder value and corporate governance. A decline in oil prices late in the period, however, led the company’s share price to finish 2018 below its year-high.

Banco Bradesco is one of Brazil’s largest financial conglomerates. It operates across a wide-range of segments, including asset management, insurance, wholesale banking, full retail operations, credit card and general corporate and personal lending. Banco Bradesco announced strong quarterly results during the period, benefitting from positive loan growth trends and decliningnon-performing loan ratios. Improved sentiment in the Brazilian market in general, driven by the victory of a more market-friendly candidate in the presidential elections and

Top 10 Holdings

12/31/18

Company
Sector/Industry, Country

% of Total
Net Assets

Samsung Electronics Co. Ltd.
Technology Hardware, Storage & Peripherals,
South Korea

7.6%

Taiwan Semiconductor Manufacturing Co. Ltd.
Semiconductors & Semiconductor Equipment, Taiwan

7.4%

Naspers Ltd.
Media, South Africa

6.5%

Alibaba Group Holding Ltd.
Internet & Direct Marketing Retail, China

4.1%

ICICI Bank Ltd.
Banks, India

3.4%

Unilever PLC
Personal Products, U.K.

3.3%

Tencent Holdings Ltd.
Interactive Media & Services, China

3.1%

Brilliance China Automotive Holdings Ltd.
Automobiles, China

2.9%

Itau Unibanco Holding SA
Banks, Brazil

2.5%

Banco Bradesco SA
Banks, Brazil

2.3%

improved economic growth, further lifted investor confidence in the stock.

In the past 12 months, we increased the Fund’s holdings in Mexico and Peru due to their solid fundamentals. In terms of sectors, additions were undertaken in financials.⁴ Key purchases included a new position in China Construction Bank, one of the largest commercial banks in China, and increasing our holdings in Naver, a dominant South Korean internet search portal, and Grupo Financiero Santander, a major financial services company in Mexico.

The Fund reduced its investments in South Korea and Hong Kong and liquidated its holdings in Belgium and Saudi Arabia in favor of stocks we considered more attractively valued within our investment universe. Sectors which experienced the largest sales were consumer discretionary, IT and consumer staples.⁵ Key reductions included liquidating our position in Anheuser-Busch InBev, a global alcoholic andnon-alcoholic

3. The IT sector comprises electronic equipment, instruments and components; IT services; semiconductors and semiconductor equipment; software; and technology hardware, storage and peripherals in the SOI.

4. The financials sector comprises banks, capital markets and insurance in the SOI.

5. The consumer discretionary sector comprises auto components; automobiles; distributors; hotels, restaurants and leisure; internet and direct marketing retail; and textiles, apparel and luxury goods in the SOI. The consumer staples sector comprises beverages, food and staples retailing, food products and personal products in the SOI. See www.franklintempletondatasources.com for additional data provider information.



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beverages company, and reducing our holdings in MGM China Holdings, a Hong Kong-listed gaming and entertainment company.

It is important to recognize the effect of currency movements on the Fund’s performance. In general, if the value of the U.S. dollar goes up compared with a foreign currency, an investment traded in that foreign currency will go down in value because it will be worth fewer U.S. dollars. This can have a negative effect on Fund performance. Conversely, when the U.S. dollar weakens in relation to a foreign currency, an investment traded in that foreign currency will increase in value, which can contribute to Fund performance. For the 12 months ended December 31, 2018, the U.S. dollar rose in value relative to most currencies. As a result, the Fund’s performance was negatively affected by the portfolio’s investment predominantly in securities withnon-U.S. currency exposure.

We thank you for your continued participation in Templeton Developing Markets Trust and look forward to serving your future investment needs.

LOGO

Chetan Sehgal, CFA

Portfolio Manager

Chetan Sehgal, CFA

Portfolio Manager

The foregoing information reflects our analysis, opinions and portfolio holdings as of December 31, 2018, 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.



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Performance Summary as of December 31, 2018

The performance table and graphs do 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 12/31/18¹

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, visitfranklintempleton.com.



Share Class	Cumulative Total Return²		Average Annual Total Return³

A⁴
1-Year		-16.20%		-20.81%
5-Year		+2.20%		-0.69%
10-Year		+96.26%		+6.37%

Advisor
1-Year		-15.99%		-15.99%
5-Year		+3.56%		+0.70%
10-Year		+101.57%		+7.26%

See page 9 for Performance Summary footnotes.

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PERFORMANCE SUMMARY

Total Return Index Comparison for a Hypothetical $10,000 Investment¹

Total return represents the change in value of an investment over the periods shown. It includes any applicable maximum sales charge, Fund expenses, account fees and reinvested distributions. The unmanaged indexes include reinvestment of any income or distributions. They differ from the Fund in composition and do not pay management fees or expenses. One cannot invest directly in an index.

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See page 9 for Performance Summary footnotes.



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PERFORMANCE SUMMARY

Distributions(1/1/18–12/31/18)



Share Class	Net Investment Income
A		$0.2455
C		$ —
R		$0.1965
R6		$0.3259
Advisor		$0.2988

Total Annual Operating Expenses⁶



Share Class	With Fee Waiver		Without Fee Waiver
A		1.38%		1.53%
Advisor		1.13%		1.28%

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. The Fund is actively managed but there is no guarantee that the manager’s investment decisions will produce the desired results. The Fund’s prospectus also includes a description of the main investment risks.

1. The Fund has an expense reduction and a fee waiver associated with any investments it makes in a Franklin Templeton money fund and/or other Franklin Templeton fund, contractually guaranteed through 4/30/19. Fund investment results reflect the expense reduction and fee waiver; without these reductions, 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 would have differed. Total returns with sales charges have been restated to reflect the current maximum initial sales charge of 5.50%.

5. Source: Morningstar. The MSCI EM Index is a free float-adjusted, market capitalization-weighted index designed to measure equity market performance of global emerging markets. The S&P/IFCI Composite Index is a free float-adjusted, market capitalization-weighted index designed to measure equity performance of global emerging markets.

6. 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.



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Your Fund’s Expenses

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.



		Actual (actual return after expenses)			Hypothetical (5% annual return before expenses)

Share Class	Beginning Account Value 7/1/18	Ending Account Value 12/31/18	Expenses Paid During Period 7/1/18–12/31/18^1,2		Ending Account Value 12/31/18	Expenses Paid During Period 7/1/18–12/31/18^1,2	Net Annualized Expense Ratio²
A	$1,000	$909.20		$ 6.45	$1,018.45	$ 6.82	1.34%
C	$1,000	$906.10		$10.04	$1,014.67	$10.61	2.09%
R	$1,000	$908.00		$ 7.65	$1,017.19	$ 8.08	1.59%
R6	$1,000	$910.30		$ 4.72	$1,020.27	$ 4.99	0.98%
Advisor	$1,000	$910.00		$ 5.25	$1,019.71	$ 5.55	1.09%

1. Expenses are equal to the annualized expense ratio for thesix-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 184/365 to reflect theone-half year period.

2. Reflects expenses after fee waivers and expense reimbursements. Does not include acquired fund fees and expenses.



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Financial Highlights


	Year Ended December 31,
	2018			2017			2016			2015			2014

Class A

Per share operating performance (for a share outstanding throughout the year)

Net asset value, beginning of year		$21.98			$15.82			$13.59			$17.09			$22.86


Income from investment operations^a:

Net investment income^b		0.20			0.15			0.10			0.07			0.27^c

Net realized and unrealized gains (losses)		(3.76	)		6.21			2.32			(3.43	)		(2.09)


Total from investment operations		(3.56	)		6.36			2.42			(3.36	)		(1.82)


Less distributions from:

Net investment income		(0.25	)		(0.20	)		(0.19	)		(0.14	)		(0.33)

Net realized gains		—			—			—			—			(3.62)


Total distributions		(0.25	)		(0.20	)		(0.19	)		(0.14	)		(3.95)


Net asset value, end of year		$18.17			$21.98			$15.82			$13.59			$17.09


Total return^d		(16.20)%			40.20%			17.84%			(19.67)%			(8.11)%

Ratios to average net assets

Expenses before waiver and payments by affiliates		1.56%			1.73%			1.79%			1.75%			1.72%

Expenses net of waiver and payments by affiliates		1.34%			1.55%	^e		1.58%			1.68%			1.72%	^f

Net investment income		0.99%			0.76%			0.64%			0.44%			1.20%	^c

Supplemental data

Net assets, end of year (000’s)		$917,488			$1,178,838			$961,888			$822,399			$1,187,072

Portfolio turnover rate		9.96%			8.89%			27.40%			67.52%			83.92%

^aThe 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.

^bBased on average daily shares outstanding.

^cNet investment income per share includes approximately $0.07 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 0.87%.

^dTotal return does not reflect sales commissions or contingent deferred sales charges, if applicable.

^eBenefit of expense reduction rounds to less than 0.01%.

^fBenefit of waiver and payments by affiliates rounds to less than 0.01%.



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FINANCIAL HIGHLIGHTS


	Year Ended December 31,
	2018			2017			2016			2015			2014

Class C

Per share operating performance (for a share outstanding throughout the year)

Net asset value, beginning of year		$21.34			$15.38			$13.22			$16.62			$22.32


Income from investment operations^a:

Net investment income (loss)^b		0.08			—	^c		(0.02	)		(0.04	)		0.10^d

Net realized and unrealized gains (losses)		(3.67	)		6.01			2.26			(3.33	)		(2.01)


Total from investment operations		(3.59	)		6.01			2.24			(3.37	)		(1.91)


Less distributions from:

Net investment income		—			(0.05	)		(0.08	)		(0.03	)		(0.17)

Net realized gains		—			—			—			—			(3.62)


Total distributions		—			(0.05	)		(0.08	)		(0.03	)		(3.79)


Net asset value, end of year		$17.75			$21.34			$15.38			$13.22			$16.62


Total return^e		(16.78)%			39.19%			16.90%			(20.28)%			(8.71)%

Ratios to average net assets

Expenses before waiver and payments by affiliates		2.31%			2.48%			2.54%			2.47%			2.44%

Expenses net of waiver and payments by affiliates		2.09%			2.30%	^f		2.33%			2.40%			2.44%	^g

Net investment income (loss)		0.24%			0.01%			(0.11)%			(0.28)%			0.48%	^d

Supplemental data

Net assets, end of year (000’s)		$63,116			$172,523			$141,100			$117,379			$186,356

Portfolio turnover rate		9.96%			8.89%			27.40%			67.52%			83.92%

^bBased on average daily shares outstanding.

^cAmount rounds to less than $0.01 per share.

^dNet investment income per share includes approximately $0.07 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 0.15%.

^eTotal return does not reflect sales commissions or contingent deferred sales charges, if applicable.

^fBenefit of expense reduction rounds to less than 0.01%.

^gBenefit of waiver and payments by affiliates rounds to less than 0.01%.



12	Annual Report\| The accompanying notes are an integral part of these financial statements.	franklintempleton.com

TEMPLETON DEVELOPING MARKETS TRUST

FINANCIAL HIGHLIGHTS


	Year Ended December 31,
	2018			2017			2016			2015			2014

Class R

Per share operating performance
(for a share outstanding throughout the year)

Net asset value, beginning of year		$21.61			$15.57			$13.37			$16.80			$22.55


Income from investment operations^a:

Net investment income^b		0.15			0.10			0.07			0.03			0.21c

Net realized and unrealized gains (losses)		(3.70	)		6.09			2.27			(3.36	)		(2.06)


Total from investment operations		(3.55	)		6.19			2.34			(3.33	)		(1.85)


Less distributions from:

Net investment income		(0.20	)		(0.15	)		(0.14	)		(0.10	)		(0.28)

Net realized gains		—			—			—			—			(3.62)


Total distributions		(0.20	)		(0.15	)		(0.14	)		(0.10	)		(3.90)


Net asset value, end of year		$17.86			$21.61			$15.57			$13.37			$16.80


Total return		(16.38)%			39.90%			17.48%			(19.83)%			(8.32)%

Ratios to average net assets

Expenses before waiver and payments by affiliates		1.81%			1.98%			2.04%			1.97%			1.94%

Expenses net of waiver and payments by affiliates		1.59%			1.80%	^d		1.83%			1.90%			1.94%	^e

Net investment income		0.74%			0.51%			0.39%			0.22%			0.98%	^c

Supplemental data

Net assets, end of year (000’s)		$18,025			$22,512			$16,628			$17,657			$26,123

Portfolio turnover rate		9.96%			8.89%			27.40%			67.52%			83.92%

^bBased on average daily shares outstanding.

^dBenefit of expense reduction rounds to less than 0.01%.

^eBenefit of waiver and payments by affiliates rounds to less than 0.01%.



franklintempleton.com	The accompanying notes are an integral part of these financial statements. \| Annual Report	13

TEMPLETON DEVELOPING MARKETS TRUST

FINANCIAL HIGHLIGHTS


	Year Ended December 31,
	2018		2017			2016		2015		2014

Class R6

Per share operating performance
(for a share outstanding throughout the year)

Net asset value, beginning of year		$21.82		$15.70			$13.49		$16.99		$22.76


Income from investment operations^a:

Net investment income^b		0.28		0.22			0.19		0.12		0.34^c

Net realized and unrealized gains (losses)		(3.75)		6.19			2.28		(3.40)		(2.05)


Total from investment operations		(3.47)		6.41			2.47		(3.28)		(1.71)


Less distributions from:

Net investment income		(0.33)		(0.29)			(0.26)		(0.22)		(0.44)

Net realized gains		—		—			—		—		(3.62)


Total distributions		(0.33)		(0.29)			(0.26)		(0.22)		(4.06)


Net asset value, end of year.		$18.02		$21.82			$15.70		$13.49		$16.99


Total return		(15.90)%		40.88%			18.34%		(19.34)%		(7.66)%

Ratios to average net assets

Expenses before waiver and payments by affiliates		1.21%		1.28%			1.30%		1.27%		1.26%

Expenses net of waiver and payments by affiliates		0.96%		1.09%	^d		1.13%		1.22%		1.26%	^e

Net investment income		1.37%		1.22%			1.09%		0.90%		1.65%	^c

Supplemental data

Net assets, end of year (000’s)		$94,344		$103,734			$57,153		$48,263		$52,185

Portfolio turnover rate		9.96%		8.89%			27.40%		67.52%		83.92%

^bBased on average daily shares outstanding.

^dBenefit of expense reduction rounds to less than 0.01%.

^eBenefit of waiver and payments by affiliates rounds to less than 0.01%.

Annual Report | The accompanying notes are an integral part of these financial statements.

franklintempleton.com

TEMPLETON DEVELOPING MARKETS TRUST

FINANCIAL HIGHLIGHTS


	Year Ended December 31,
	2018		2017			2016		2015		2014

Advisor Class

Per share operating performance
(for a share outstanding throughout the year)

Net asset value, beginning of year		$21.86		$15.73			$13.52		$17.01		$22.77


Income from investment operations^a:

Net investment income^b		0.25		0.20			0.13		0.12		0.33	^c

Net realized and unrealized gains (losses)		(3.75)		6.18			2.31		(3.43)		(2.08)


Total from investment operations		(3.50)		6.38			2.44		(3.31)		(1.75)


Less distributions from:

Net investment income		(0.30)		(0.25)			(0.23)		(0.18)		(0.39)

Net realized gains		—		—			—		—		(3.62)


Total distributions		(0.30)		(0.25)			(0.23)		(0.18)		(4.01)


Net asset value, end of year		$18.06		$21.86			$15.73		$13.52		$17.01


Total return		(15.99)%		40.59%			18.08%		(19.47)%		(7.79)%

Ratios to average net assets

Expenses before waiver and payments by affiliates		1.31%		1.48%			1.54%		1.47%		1.44%

Expenses net of waiver and payments by affiliates		1.09%		1.30%	^d		1.33%		1.40%		1.44%	^e

Net investment income		1.24%		1.01%			0.89%		0.72%		1.48%	^c

Supplemental data

Net assets, end of year (000’s)		$156,766		$179,125			$117,914		$101,900		$175,503

Portfolio turnover rate		9.96%		8.89%			27.40%		67.52%		83.92%

^bBased on average daily shares outstanding.

^dBenefit of expense reduction rounds to less than 0.01%.

^eBenefit of waiver and payments by affiliates rounds to less than 0.01%.



franklintempleton.com	The accompanying notes are an integral part of these financial statements. \| Annual Report	15

TEMPLETON DEVELOPING MARKETS TRUST

Statement of Investments, December 31, 2018



		Industry		Shares		Value
	Common Stocks 94.0%
	Argentina 0.0%^†
^a	Cablevision Holding SA, GDR		Media		50,168	$	307,535

	Brazil 2.2%
^a	B2W Cia Digital		Internet & Direct Marketing Retail		502,700		5,442,436
	B3 SA - Brasil Bolsa Balcao		Capital Markets		1,089,800		7,527,868
	M. Dias Branco SA		Food Products		591,300		6,520,487
	Mahle-Metal Leve SA		Auto Components		550,300		3,561,619
	Totvs SA		Software		577,100		4,036,912


							27,089,322

	Cambodia 1.5%
	NagaCorp Ltd.		Hotels, Restaurants & Leisure		17,932,000		19,281,967

	China 20.7%
^a	Alibaba Group Holding Ltd., ADR		Internet & Direct Marketing Retail		373,631		51,213,601
	BAIC Motor Corp. Ltd., H		Automobiles		5,961,900		3,144,454
^a	Baidu Inc., ADR		Interactive Media & Services		41,254		6,542,884
	Brilliance China Automotive Holdings Ltd.		Automobiles		48,780,900		36,318,581
	China Construction Bank Corp., H		Banks		27,340,200		22,555,098
	China Mobile Ltd.		Wireless Telecommunication Services		2,094,859		20,158,052
	China Petroleum & Chemical Corp., H		Oil, Gas & Consumable Fuels		17,071,292		12,186,772
	China Resources Cement Holdings Ltd.		Construction Materials		1,584,300		1,426,386
	CNOOC Ltd.		Oil, Gas & Consumable Fuels		9,468,200		14,630,639
	COSCO Shipping Ports Ltd.		Transportation Infrastructure		3,448,019		3,390,556
	Dah Chong Hong Holdings Ltd.		Distributors		7,473,500		2,586,449
	NetEase Inc., ADR		Entertainment		32,523		7,654,938
	Ping An Bank Co. Ltd., A		Banks		10,797,338		14,723,999
	Ping An Insurance Group Co. of China Ltd., A		Insurance		1,362,096		11,109,048
	Poly Culture Group Corp. Ltd., H.		Entertainment		984,800		1,285,315
	Tencent Holdings Ltd.		Interactive Media & Services		964,395		38,671,864
^a	Tencent Music Entertainment Group, ADR		Entertainment		247		3,265
	Uni-President China Holdings Ltd.		Food Products		9,916,300		8,611,307
	Weifu High-Technology Co. Ltd., B		Auto Components		1,348,863		2,332,368


							258,545,576

	Czech Republic 0.4%
	Moneta Money Bank AS		Banks		1,701,603		5,494,420

	Hong Kong 0.9%
	Dairy Farm International Holdings Ltd.		Food & Staples Retailing		505,662		4,576,241
	MGM China Holdings Ltd.		Hotels, Restaurants & Leisure		4,303,400		7,221,337


							11,797,578

	Hungary 1.1%
	Richter Gedeon Nyrt		Pharmaceuticals		718,019		13,914,998

	India 8.2%
	Bajaj Holdings & Investment Ltd.		Diversified Financial Services		197,008		8,353,796
	Bharat Petroleum Corp. Ltd.		Oil, Gas & Consumable Fuels		265,252		1,383,070
	Biocon Ltd.		Biotechnology		1,422,204		12,859,529
	Coal India Ltd.		Oil, Gas & Consumable Fuels		1,066,780		3,691,638
	Glenmark Pharmaceuticals Ltd.		Pharmaceuticals		1,138,844		11,345,060
	ICICI Bank Ltd.		Banks		8,171,501		42,302,229
	Infosys Ltd.		IT Services		1,031,262		9,767,861
	Reliance Industries Ltd.		Oil, Gas & Consumable Fuels		177,252		2,856,746
	Tata Chemicals Ltd.		Chemicals		689,000		6,998,941
^a	Tata Motors Ltd., A		Automobiles		1,727,029		2,299,975


							101,858,845

Annual Report

franklintempleton.com

TEMPLETON DEVELOPING MARKETS TRUST

STATEMENT OF INVESTMENTS


		Industry		Shares		Value
	Common Stocks(continued)
	Indonesia 3.4%
	Astra International Tbk PT		Automobiles		35,262,500	$	20,169,268
	Bank Danamon Indonesia Tbk PT		Banks		24,485,600		12,940,929
	Semen Indonesia (Persero) Tbk PT		Construction Materials		11,931,200		9,541,641


						42,651,838

	Kenya 0.3%
	Equity Group Holdings PLC		Banks		10,013,923		3,414,954

	Macau 1.0%
	Sands China Ltd.		Hotels, Restaurants & Leisure		2,899,200		12,699,388

	Mexico 2.2%
	Banco Santander Mexico SA Institucion de Banca Multiple Grupo Financiero Santander, ADR		Banks		3,726,457		22,954,975
	Nemak SAB de CV		Auto Components		5,984,291		4,470,593


						27,425,568

	Nigeria 0.0%^†
	Nigerian Breweries PLC		Beverages		677,413		161,109

	Pakistan 0.4%
	Habib Bank Ltd.		Banks		6,343,100		5,353,976

	Peru 1.9%
	Compania de Minas Buenaventura SA, ADR		Metals & Mining		1,143,090		18,540,920
^b	Intercorp Financial Services Inc., Reg S		Banks		123,460		5,185,320


						23,726,240

	Philippines 0.3%
	BDO Unibank Inc.		Banks		1,411,517		3,516,694
	Security Bank Corp.		Banks		6,300		18,600


						3,535,294

	Russia 6.8%
	Gazprom PJSC, ADR		Oil, Gas & Consumable Fuels		1,492,646		6,610,929
	LUKOIL PJSC, ADR		Oil, Gas & Consumable Fuels		350,812		25,076,042
^a,b	Mail.Ru Group Ltd., GDR, Reg S		Interactive Media & Services		510,466		11,975,532
	MMC Norilsk Nickel PJSC, ADR		Metals & Mining		168,800		3,166,688
	Sberbank of Russia PJSC, ADR		Banks		1,950,337		21,375,694
^a	Yandex NV, A		Interactive Media & Services		600,167		16,414,567


						84,619,452

	Singapore 0.2%
	DBS Group Holdings Ltd.		Banks		109,798		1,908,305

	South Africa 7.3%
	Massmart Holdings Ltd.		Food & Staples Retailing		1,280,951		9,228,931
	Naspers Ltd., N		Media		404,811		81,486,516


						90,715,447

	South Korea 16.7%
	Fila Korea Ltd.		Textiles, Apparel & Luxury Goods		354,885		17,047,838
	Hankook Tire Co. Ltd.		Auto Components		89,556		3,228,555
	Hanon Systems		Auto Components		419,862		4,071,535
^a	HDC Hyundai DevelopmentCo-Engineering & Construction		Construction & Engineering		245,826		10,639,047
	Hite Jinro Co. Ltd.		Beverages		277,870		4,141,690
	iMarketKorea Inc.		Trading Companies & Distributors		101,896		633,127
	Interpark Holdings Corp.		Internet & Direct Marketing Retail		613,554		1,294,639
	KT Skylife Co. Ltd.		Media		716,862		7,402,208



franklintempleton.com	Annual Report	17

TEMPLETON DEVELOPING MARKETS TRUST

STATEMENT OF INVESTMENTS


		Industry		Shares		Value
	Common Stocks(continued)
	South Korea(continued)
	LG Corp.		Industrial Conglomerates		272,863	$	17,125,754
	Naver Corp.		Interactive Media & Services		219,965		24,095,797
	POSCO		Metals & Mining		66,214		14,447,210
	Samsung Electronics Co. Ltd.		Technology Hardware, Storage & Peripherals		2,739,600		95,197,601
	SK Hynix Inc.		Semiconductors & Semiconductor Equipment		177,310		9,632,000


						208,957,001

	Taiwan 10.9%
	Catcher Technology Co. Ltd.		Technology Hardware, Storage & Peripherals		1,421,000		10,449,554
	CTBC Financial Holding Co. Ltd.		Banks		10,910,000		7,202,732
	FIT Hon Teng Ltd.		Electronic Equipment, Instruments & Components		7,883,100		3,412,772
	Hon Hai Precision Industry Co. Ltd.		Electronic Equipment, Instruments & Components		5,074,192		11,741,438
	Largan Precision Co. Ltd.		Electronic Equipment, Instruments & Components		48,900		5,138,200
	Pegatron Corp.		Technology Hardware, Storage & Peripherals		1,968,300		3,306,554
	Primax Electronics Ltd.		Technology Hardware, Storage & Peripherals		1,929,000		2,739,322
	Taiwan Semiconductor Manufacturing Co. Ltd.		Semiconductors & Semiconductor Equipment		12,483,000		91,999,755


						135,990,327

	Thailand 3.5%
	Kasikornbank PCL, fgn		Banks		2,502,700		14,277,927
	Kiatnakin Bank PCL, fgn		Banks		4,178,300		8,559,442
	Land and Houses PCL, fgn		Real Estate Management & Development		16,870,500		5,164,439
	PTT Exploration and Production PCL, fgn		Oil, Gas & Consumable Fuels		476,800		1,673,370
	Siam Commercial Bank PCL, fgn		Banks		1,268,000		5,234,323
	Thai Beverage PCL, fgn		Beverages		20,825,900		9,320,127


						44,229,628

	United Kingdom 3.3%
	Unilever PLC		Personal Products		793,200		41,558,639

	United States 0.8%
^a	IMAX Corp.		Entertainment		507,604		9,548,031

	Total Common Stocks (Cost $976,393,338)						1,174,785,438

	Preferred Stocks 4.8%
	Brazil 4.8%
^c	Banco Bradesco SA, 3.078%, ADR, pfd		Banks		2,984,062		29,512,373
^c	Itau Unibanco Holding SA, 10.117%, ADR, pfd		Banks		3,377,659		30,871,803

	Total Preferred Stocks (Cost $25,487,069)						60,384,176

	Total Investments before Short Term Investments (Cost $1,001,880,407)						1,235,169,614



18	Annual Report	franklintempleton.com

TEMPLETON DEVELOPING MARKETS TRUST

STATEMENT OF INVESTMENTS


		Shares		Value
	Short Term Investments (Cost $16,054,337) 1.3%

	Money Market Funds 1.3%
	United States 1.3%
^d,e	Institutional Fiduciary Trust Money Market Portfolio, 1.99%		16,054,337	$	16,054,337

	Total Investments (Cost $1,017,934,744) 100.1%				1,251,223,951
	Other Assets, less Liabilities (0.1)%				(1,484,237	)

	Net Assets 100.0%			$	1,249,739,714

See Abbreviations on page 32.

^†Rounds to less than 0.1% of net assets.

^aNon-income producing.

^bSecurity was purchased pursuant to Regulation S under the Securities Act of 1933, which exempts from registration securities offered and sold outside of the United States. Such a security 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. These securities have been deemed liquid under guidelines approved by the Fund’s Board of Trustees. At December 31, 2018, the aggregate value of these securities was $17,160,852, representing 1.4% of net assets.

^cVariable rate security. The rate shown represents the yield at period end.

^dSee Note 3(f) regarding investments in affiliated management investment companies.

^eThe rate shown is the annualizedseven-day effective yield at period end.



franklintempleton.com	The accompanying notes are an integral part of these financial statements. \| Annual Report	19

TEMPLETON DEVELOPING MARKETS TRUST

Financial Statements

Statement of Assets and Liabilities

December 31, 2018


Assets:
Investments in securities:
Cost - Unaffiliated issuers			$1,001,880,407
Cost -Non-controlled affiliates (Note 3f)			16,054,337

Value - Unaffiliated issuers			$1,235,169,614
Value -Non-controlled affiliates (Note 3f)			16,054,337
Receivables:
Investment securities sold			1,112,893
Capital shares sold			1,600,023
Dividends			4,219,909
Foreign tax refund			975,682
Other assets			198

Total assets			1,259,132,656

Liabilities:
Payables:
Investment securities purchased			1,544,583
Capital shares redeemed			3,548,724
Management fees			950,082
Distribution fees			514,542
Transfer agent fees			368,551
Deferred tax			2,189,214
Accrued expenses and other liabilities			277,246

Total liabilities			9,392,942

Net assets, at value			$1,249,739,714

Net assets consist of:
Paid-in capital			$1,122,136,062
Total distributable earnings (loss)			127,603,652

Net assets, at value			$1,249,739,714



20	Annual Report \| The accompanying notes are an integral part of these financial statements.	franklintempleton.com

TEMPLETON DEVELOPING MARKETS TRUST

FINANCIAL STATEMENTS

Statement of Assets and Liabilities(continued)

December 31, 2018


Class A:
Net assets, at value	$	917,488,065

Shares outstanding		50,503,816

Net asset value per share^a		$18.17

Maximum offering price per share (net asset value per share ÷ 94.50%)		$19.23

Class C:
Net assets, at value	$	63,116,118

Shares outstanding.		3,554,972

Net asset value and maximum offering price per share^a		$17.75

Class R:
Net assets, at value	$	18,025,473

Shares outstanding		1,009,014

Net asset value and maximum offering price per share		$17.86

Class R6:
Net assets, at value	$	94,344,091

Shares outstanding		5,234,812

Net asset value and maximum offering price per share		$18.02

Advisor Class:
Net assets, at value	$	156,765,967

Shares outstanding		8,681,450

Net asset value and maximum offering price per share		$18.06

^aRedemption price is equal to net asset value less contingent deferred sales charges, if applicable.



franklintempleton.com	The accompanying notes are an integral part of these financial statements. \| Annual Report	21

TEMPLETON DEVELOPING MARKETS TRUST

FINANCIAL STATEMENTS

Statement of Operations

for the year ended December 31, 2018


Investment income:
Dividends: (net of foreign taxes)*
Unaffiliated issuers	$	34,667,468
Non-controlled affiliates (Note 3f)		328,309

Total investment income		34,995,777

Expenses:
Management fees (Note 3a)		16,365,213
Distribution fees: (Note 3c)
Class A		2,630,984
Class C		1,383,651
Class R		102,576
Transfer agent fees: (Note 3e)
Class A		1,498,591
Class C		197,041
Class R		29,379
Class R6		43,446
Advisor Class		252,587
Custodian fees (Note 4)		462,628
Reports to shareholders		193,042
Registration and filing fees		143,888
Professional fees		157,995
Trustees’ fees and expenses		180,349
Other		57,056

Total expenses		23,698,426
Expenses waived/paid by affiliates (Note 3f and 3g)		(3,322,169	)

Net expenses		20,376,257

Net investment income		14,619,520

Realized and unrealized gains (losses):
Net realized gain (loss) from:
Investments:^#
Unaffiliated issuers		65,133,949
Foreign currency transactions		(419,729	)

Net realized gain (loss)		64,714,220

Net change in unrealized appreciation (depreciation) on:
Investments:
Unaffiliated issuers		(336,771,354	)
Translation of other assets and liabilities denominated in foreign currencies		(54,108	)
Change in deferred taxes on unrealized appreciation		1,156,379

Net change in unrealized appreciation (depreciation)		(335,669,083	)

Net realized and unrealized gain (loss)		(270,954,863	)

Net increase (decrease) in net assets resulting from operations	$	(256,335,343	)


*Foreign taxes withheld on dividends	$	4,944,153
^#Net of foreign taxes	$	5,212



22	Annual Report \| The accompanying notes are an integral part of these financial statements.	franklintempleton.com

TEMPLETON DEVELOPING MARKETS TRUST

FINANCIAL STATEMENTS

Statements of Changes in Net Assets



	Year Ended December 31,

	2018			2017
Increase (decrease) in net assets:
Operations:
Net investment income	$	14,619,520		$	11,092,103
Net realized gain (loss)		64,714,220			68,000,581
Net change in unrealized appreciation (depreciation)		(335,669,083	)		421,107,132

Net increase (decrease) in net assets resulting from operations		(256,335,343	)		500,199,816

Distributions to shareholders: (Note 1d)
Class A		(12,287,764	)		(10,529,265	)
Class C		—			(424,247	)
Class R		(197,582	)		(162,493	)
Class R6		(1,676,225	)		(1,360,463	)
Advisor Class		(2,562,397	)		(2,031,475	)

Total distributions to shareholders		(16,723,968	)		(14,507,943	)

Capital share transactions: (Note 2)
Class A		(71,662,980	)		(137,774,815	)
Class C		(83,676,819	)		(19,972,580	)
Class R		(652,516	)		(522,417	)
Class R6		10,972,208			24,065,340
Advisor Class		11,086,440			10,561,021

Total capital share transactions		(133,933,667	)		(123,643,451	)

Net increase (decrease) in net assets		(406,992,978	)		362,048,422
Net assets:
Beginning of year		1,656,732,692			1,294,684,270

End of year (Note 1d)	$	1,249,739,714		$	1,656,732,692



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TEMPLETON DEVELOPING MARKETS TRUST

Notes to Financial Statements

1. Organization and Significant Accounting Policies

Templeton Developing Markets Trust (Fund) is registered under the Investment Company Act of 1940 (1940 Act) as anopen-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. Beginning on October 19, 2018, 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 inopen-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. Occasionally, events 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, the VC monitors price movements following the close of trading in foreign stock markets through a series of country specific market proxies (such as baskets of American Depositary Receipts, futures contracts and exchange traded funds). These price movements are measured against established trigger thresholds for each specific market proxy to assist in determining if an event has occurred that may call into question the reliability of the values of the foreign securities held by the Fund. If such an event occurs, the securities may be valued using fair value procedures, which may include the use of independent pricing services.

Annual Report

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TEMPLETON DEVELOPING MARKETS TRUST

NOTES TO FINANCIAL STATEMENTS

When the last day of the reporting period is anon-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 of the reporting period. Any significant 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. 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.

As a result of several court cases, in certain countries across the European Union, the Fund filed additional tax reclaims for previously withheld taxes on dividends earned in those countries (EU reclaims). These additional filings are subject to various administrative proceedings by the local jurisdictions’ tax authorities within the European Union, as well as a number of related judicial proceedings. Income recognized, if any, for EU reclaims is reflected as other income in the Statement of Operations and any related receivable, if any, is reflected as European Union tax reclaims in the Statement of Assets and Liabilities. When uncertainty exists as to the ultimate resolution of these proceedings, the likelihood of receipt of these EU reclaims, and the potential timing of payment, no amounts are reflected in the financial statements. For U.S. income tax purposes, EU reclaims received by the Fund, if any, reduce the amounts of foreign taxes Fund shareholders can use as tax credits in their individual income tax returns.

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 December 31, 2018, 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.

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Annual Report

TEMPLETON DEVELOPING MARKETS TRUST

NOTES TO FINANCIAL STATEMENTS

1. Organization and Significant Accounting Policies(continued)

d.�� 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 theex-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 theex-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.

e. 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.

f. 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.

*Effective during the current reporting period, it is no longer required to present certain line items in the Statements of Changes in Net Assets. The below prior period amounts affected by this change are shown as they were in the prior year Statements of Changes in Net Assets.

For the year ended December 31, 2017, distributions to shareholders were as follows:


Distributions from net investment income :
Class A	$	(10,529,265	)
Class C		(424,247	)
Class R		(162,493	)
Class R6.		(1,360,463	)
Advisor Class		(2,031,475	)

For the year ended December 31, 2017, distributions in excess of net investment income included in net assets was $(6,311,593).



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TEMPLETON DEVELOPING MARKETS TRUST

NOTES TO FINANCIAL STATEMENTS

2. Shares of Beneficial Interest

At December 31, 2018, there were an unlimited number of shares authorized (without par value). Transactions in the Fund’s shares were as follows:


	Year Ended December 31,
	2018						2017
	Shares			Amount			Shares			Amount

Class A Shares:
Shares sold^a		7,871,601		$	157,528,775			7,431,493		$	143,339,969
Shares issued in reinvestment of distributions		603,651			10,787,233			426,514			9,210,781
Shares redeemed		(11,605,462	)		(239,978,988	)		(15,028,543	)		(290,325,565	)

Net increase (decrease)		(3,130,210	)	$	(71,662,980	)		(7,170,536	)	$	(137,774,815	)

Class C Shares:
Shares sold		728,900		$	14,876,040			1,171,959		$	22,298,742
Shares issued in reinvestment of distributions		—			—			19,873			414,917
Shares redeemed^a		(5,256,767	)		(98,552,859	)		(2,285,942	)		(42,686,239	)

Net increase (decrease)		(4,527,867	)	$	(83,676,819	)		(1,094,110	)	$	(19,972,580	)

Class R Shares:
Shares sold		408,112		$	8,398,931			431,809		$	8,262,312
Shares issued in reinvestment of distributions		10,678			187,617			7,092			150,579
Shares redeemed		(451,385	)		(9,239,064	)		(465,563	)		(8,935,308	)

Net increase (decrease)		(32,595	)	$	(652,516	)		(26,662	)	$	(522,417	)

Class R6 Shares:
Shares sold		1,579,435		$	33,626,359			1,855,631		$	38,531,980
Shares issued in reinvestment of distributions		42,681			756,740			25,243			541,740
Shares redeemed		(1,141,017	)		(23,410,891	)		(766,583	)		(15,008,380	)

Net increase (decrease)		481,099		$	10,972,208			1,114,291		$	24,065,340

Advisor Class Shares:
Shares sold		3,797,213		$	78,509,855			3,938,388		$	74,290,203
Shares issued in reinvestment of distributions		136,441			2,423,201			87,266			1,874,919
Shares redeemed		(3,446,857	)		(69,846,616	)		(3,325,649	)		(65,604,101	)

Net increase (decrease)		486,797		$	11,086,440			700,005		$	10,561,021

^aMay include a portion of Class C shares that were automatically converted to Class A.

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:



Subsidiary		Affiliation

Templeton Asset Management Ltd. (Asset Management)		Investment manager

Franklin Templeton Services, LLC (FT Services)		Administrative manager

Franklin Templeton Distributors, Inc. (Distributors)		Principal underwriter

Franklin Templeton Investor Services, LLC (Investor Services)		Transfer agent



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TEMPLETON DEVELOPING MARKETS TRUST

NOTES TO FINANCIAL STATEMENTS

3. Transactions with Affiliates(continued)

a. Management Fees

Effective May 1, 2018, the Fund pays an investment management fee to Asset Management based on the average daily net assets of the Fund as follows:



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

Prior to May 1, 2018, the Fund paid fees based on the average daily net assets of the Fund as follows:



Annualized Fee Rate		Net Assets

1.250%		Up to and including $200 million

1.235%		Over $200 million, up to and including $700 million

1.200%		Over $700 million, up to and including $1 billion

1.150%		Over $1 billion, up to and including $1.2 billion

1.125%		Over $1.2 billion, up to and including $5 billion

1.075%		Over $5 billion, up to and including $10 billion

1.025%		Over $10 billion, up to and including $15 billion

0.975%		Over $15 billion, up to and including $20 billion

0.925%		In excess of $20 billion

For the year ended December 31, 2018, the gross effective investment management fee rate was 1.093% of the Fund’s average daily net assets.

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 Rule12b-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.



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NOTES TO FINANCIAL STATEMENTS

The maximum annual plan rates, based on the average daily net assets, for each class, are as follows:


Class A	0.35	%
Class C	1.00	%
Class R	0.50	%

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 year:


Sales charges retained net of commissions paid to unaffiliated brokers/dealers	$	86,565

CDSC retained	$	13,265

Effective September 10, 2018, the Board approved changes to certainfront-end sales charges and dealer commissions on Class A shares. Further details are disclosed in the Funds’ Prospectus.

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 year ended December 31, 2018, the Fund paid transfer agent fees of $2,021,044, of which $949,710 was retained by Investor Services.

f. Investments in Affiliated Management Investment Companies

The Fund invests in one or more affiliated management investment companies for purposes other than 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 year ended December 31, 2018, the Fund held investments in affiliated management investment companies as follows:



	Number of Shares Held at Beginning of Year		Gross Additions		Gross Reductions			Number of Shares Held at End of Year		Value at End of Year		Dividend Income		Realized Gain (Loss)		Net Change in Unrealized Appreciation (Depreciation)
Non-Controlled Affiliates
Institutional Fiduciary Trust Money Market Portfolio, 1.99%		16,800,410		195,667,746		(196,413,819	)		16,054,337	$	16,054,337	$	328,309	$	—	$	—

g. Waiver and Expense Reimbursements

Asset Management and Investor Services have contractually agreed in advance to waive or limit their respective fees and to assume as their own expense certain expenses otherwise payable by the Fund so that the expenses (excluding distribution fees, acquired fund fees and expenses, and certainnon-routine expenses or costs, including those relating to litigation, indemnification,



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TEMPLETON DEVELOPING MARKETS TRUST

NOTES TO FINANCIAL STATEMENTS

3. Transactions with Affiliates(continued)

g. Waiver and Expense Reimbursements(continued)

reorganizations, and liquidations) for Class A, Class C, Class R and Advisor Class of the Fund do not exceed 1.13% and Class R6 does not exceed 0.98% based on the average net assets of each class until April 30, 2019. Total expenses waived or paid are not subject to recapture subsequent to the Fund’s fiscal year end. Prior to May 1, 2018, expenses for Class R6 were limited to 0.89%.

Prior to February 1, 2018, expenses (excluding certain fees and expenses as previously disclosed) for Class A, Class C, Class R and Advisor Class were limited to 1.31%, and expenses for Class R6 were limited to 1.08% based on the average net assets of each class.

Prior to May 1, 2018, Asset Management had contractually agreed in advance to limit the investment management fees to 1.05% of the average daily net assets of the Fund.

4. Expense Offset Arrangement

The Fund has entered into an arrangement with its custodian whereby credits realized as a result of uninvested cash balances are used to reduce a portion of the Fund’s custodian expenses. During the year ended December 31, 2018, there were no credits earned.

5. Income Taxes

For tax purposes, capital losses may be carried over to offset future capital gains.

At December 31, 2018, capital loss carryforwards were as follows:


Capital loss carryforwards not subject to expiration:
Short Term	$	52,177,624
Long Term		34,909,918

Total capital loss carryforwards	$	87,087,542^a

^aIncludes $42,136,018 from the acquired Templeton BRIC Fund, which may be carried over to offset future capital gains, subject to certain limitations.

During the year ended December 31, 2018, the Fund utilized $59,373,817 of capital loss carryforwards.

On December 31, 2018, the Fund had expired capital loss carryforwards of $12,538,988.

The tax character of distributions paid during the years ended December 31, 2018 and 2017, was as follows:



	2018		2017

Distributions paid from ordinary income	$	16,723,968	$	14,507,943

At December 31, 2018, the cost of investments, net unrealized appreciation (depreciation) and undistributed ordinary income for income tax purposes were as follows:


Cost of investments	$	1,034,154,669


Unrealized appreciation	$	335,899,628
Unrealized depreciation		(118,830,346	)

Net unrealized appreciation (depreciation)	$	217,069,282


Distributable earnings:
Undistributed ordinary income	$	220,000



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NOTES TO FINANCIAL STATEMENTS

Differences between income and/or capital gains as determined on a book basis and a tax basis are primarily due to differing treatment of corporate actions.

6. Investment Transactions

Purchases and sales of investments (excluding short term securities) for the year ended December 31, 2018, aggregated $147,302,777 and $281,539,769, respectively.

7. 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 and regional economic, political and social conditions, which may result in greater market volatility. Current political and financial uncertainty surrounding the European Union may increase market volatility and the economic risk of investing in securities in Europe. 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, possibly forcing the economy into a recession. 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 December 31, 2018, the Fund had 6.8% of its net assets invested in Russia.

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 billion (Global Credit Facility) which matured on February 8, 2019. 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. Effective February 8, 2019, the Borrowers renewed the Global Credit Facility for a one year term, maturing February 7, 2020, for a total of $2 billion.

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 year ended December 31, 2018, 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



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TEMPLETON DEVELOPING MARKETS TRUST

NOTES TO FINANCIAL STATEMENTS

9. Fair Value Measurements(continued)

•

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.

At December 31, 2018, all of the Fund’s investments in financial instruments carried at fair value were valued using Level 1 inputs. For detailed categories, see the accompanying Statement of Investments.

10. 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 other than those already disclosed in the financial statements.

Abbreviations


Selected Portfolio

ADR		American Depositary Receipt
GDR		Global Depositary Receipt



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TEMPLETON DEVELOPING MARKETS TRUST

Report of Independent Registered Public Accounting Firm

To the Board of Trustees and Shareholders of Templeton Developing Markets Trust

Opinion on the Financial Statements

We have audited the accompanying statement of assets and liabilities, including the statement of investments, of Templeton Developing Markets Trust (the “Fund”) as of December 31, 2018, the related statement of operations for the year ended December 31, 2018, the statement of changes in net assets for each of the two years in the period ended December 31, 2018, including the related notes, and the financial highlights for each of the five years in the period ended December 31, 2018 (collectively referred to as the “financial statements”). In our opinion, the financial statements present fairly, in all material respects, the financial position of the Fund as of December 31, 2018, the results of its operations for the year then ended, the changes in its net assets for each of the two years in the period ended December 31, 2018 and the financial highlights for each of the five years in the period ended December 31, 2018 in conformity with accounting principles generally accepted in the United States of America.

Basis for Opinion

These financial statements are the responsibility of the Fund’s management. Our responsibility is to express an opinion on the Fund’s financial statements based on our audits. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (PCAOB) and are required to be independent with respect to the Fund in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.

We conducted our audits of these financial statements in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement, whether due to error or fraud.

Our audits included performing procedures to assess the risks of material misstatement of the financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements. Our procedures included confirmation of securities owned as of December 31, 2018 by correspondence with the custodian, transfer agent and brokers; when replies were not received from brokers, we performed other auditing procedures. We believe that our audits provide a reasonable basis for our opinion.

PricewaterhouseCoopers LLP

San Francisco, California

February 15, 2019

We have served as the auditor of one or more investment companies in the Franklin Templeton Group of Funds since 1948.



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TEMPLETON DEVELOPING MARKETS TRUST

Tax Information (unaudited)

Under Section 854(b)(1)(B) of the Internal Revenue Code, the Fund hereby reports the maximum amount allowable but no less than $19,853,473 as qualified dividends for purposes of the maximum rate under Section 1(h)(11) of the Internal Revenue Code for the fiscal year ended December 31, 2018. Distributions, including qualified dividend income, paid during calendar year 2018 will be reported to shareholders on Form1099-DIV bymid-February 2019. Shareholders are advised to check with their tax advisors for information on the treatment of these amounts on their individual income tax returns.

At December 31, 2018, more than 50% of the Fund’s total assets were invested in securities of foreign issuers. In most instances, foreign taxes were withheld from income paid to the Fund on these investments. As shown in the table below, the Fund hereby reports to shareholders the foreign source income and foreign taxes paid, pursuant to Section 853 of the Internal Revenue Code. This written statement will allow shareholders of record on December 20, 2018, to treat their proportionate share of foreign taxes paid by the Fund as having been paid directly by them. The shareholder shall consider these amounts as foreign taxes paid in the tax year in which they receive the Fund distribution.

The following table provides a detailed analysis of foreign tax paid, foreign source income, and foreign source qualified dividends as reported by the Fund to shareholders of record.



Class	Foreign Tax Paid Per Share		Foreign Source Income Per Share		Foreign Source Qualified Dividends Per Share

Class A		$0.0650		$0.3245		$0.1736
Class C		$0.0650		$0.0000		$0.0000
Class R		$0.0650		$0.2762		$0.1480
Class R6		$0.0650		$0.4036		$0.2164
Advisor Class		$0.0650		$0.3772		$0.2021

Foreign Tax Paid Per Share is the amount per share available to you, as a tax credit (assuming you held your shares in the Fund for a minimum of 16 days during the31-day period beginning 15 days before theex-dividend date of the Fund’s distribution to which the foreign taxes relate), or, as a tax deduction.

Foreign Source Income Per Share is the amount per share of income dividends attributable to foreign securities held by the Fund, plus any foreign taxes withheld on these dividends. The amounts reported include foreign source qualified dividends that have not been adjusted for the rate differential applicable to such dividend income.¹

Foreign Source Qualified Dividends Per Share is the amount per share of foreign source qualified dividends plus any foreign taxes withheld on these dividends. These amounts represent the portion of the Foreign Source Income Per Share that were derived from qualified foreign securities held by the Fund.¹

Bymid-February 2019, shareholders will receive Form1099-DIV which will include their share of taxes paid and foreign source income distributed during the calendar year 2018. The Foreign Source Income reported on Form1099-DIV has not been adjusted for the rate differential on foreign source qualified dividend income. Shareholders are advised to check with their tax advisors for information on the treatment of these amounts on their 2018 individual income tax returns.

¹Qualified dividends are taxed at reduced long term capital gains tax rates. In determining the amount of foreign tax credit that may be applied against the U.S. tax liability of individuals receiving foreign source qualified dividends, adjustments may be required to the foreign tax credit limitation calculation to reflect the rate differential applicable to such dividend income. The rules however permit certain individuals to elect not to apply the rate differential adjustments for capital gains and/or dividends for any taxable year. Please consult your tax advisor and the instructions to Form 1116 for more information.



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Board Members and Officers

The name, year of birth and address of the officers and board members, as well as their affiliations, positions held with the Trust, principal occupations during at least the past five years and number of U.S. registered portfolios overseen in the Franklin Templeton Investments fund complex, are shown below. Generally, each board member serves until that person’s successor is elected and qualified.

Independent Board Members


Name, Year of Birth and Address	Position	Length of Time Served	Number of Portfolios in Fund Complex Overseen by Board Member*	Other Directorships Held During at Least the Past 5 Years

Harris J. Ashton (1932) 300 S.E. 2nd Street Fort Lauderdale, FL 33301-1923	Trustee	Since 1992	136	Bar-S Foods (meat packing company) (1981-2010).

Principal Occupation During at Least the Past 5 Years:
Director of various companies; andformerly, Director, RBC Holdings, Inc. (bank holding company) (until 2002); and President, Chief Executive Officer and Chairman of the Board, General Host Corporation (nursery and craft centers) (until 1998).

Ann Torre Bates (1958) 300 S.E. 2nd Street Fort Lauderdale, FL 33301-1923	Trustee	Since 2008	38	Ares Capital Corporation (specialty finance company) (2010-present), United Natural Foods, Inc. (distributor of natural, organic and specialty foods) (2013-present), Allied Capital Corporation (financial services) (2003-2010), SLM Corporation (Sallie Mae) (1997-2014) and Navient Corporation (loan management, servicing and asset recovery) (2014-2016).

Principal Occupation During at Least the Past 5 Years:
Director of various companies; andformerly, Executive Vice President and Chief Financial Officer, NHP Incorporated (manager of multifamily housing) (1995-1997); and Vice President and Treasurer, US Airways, Inc. (until 1995).

Mary C. Choksi (1950) 300 S.E. 2nd Street Fort Lauderdale, FL 33301-1923	Trustee	Since 2016	136	Avis Budget Group Inc. (car rental) (2007-present), Omnicom group Inc. (advertising and marketing communications services) (2011-present) and White Mountains Insurance Group, Ltd. (holding company) (2017-present).

Principal Occupation During at Least the Past 5 Years:
Director of various companies; andformerly, Founder and Senior Advisor, Strategic Investment Group (investment management group) (2015-2017); Founding Partner and Senior Managing Director, Strategic Investment Group (1987-2015); Founding Partner and Managing Director, Emerging Markets Management LLC (investment management firm) (1987-2011); and Loan Officer/Senior Loan Officer/Senior Pension Investment Officer, World Bank Group (international financial institution) (1977-1987).

Edith E. Holiday (1952) 300 S.E. 2nd Street Fort Lauderdale, FL 33301-1923	Lead Independent Trustee	Trustee since 1996 and Lead Independent Trustee since 2007	136	Hess Corporation (exploration of oil and gas) (1993-present), Canadian National Railway (railroad) (2001-present), White Mountains Insurance Group, Ltd. (holding company) (2004-present), Santander Consumer USA Holdings, Inc. (consumer finance) (2016-present), RTI International Metals, Inc. (manufacture and distribution of titanium) (1999-2015) and H.J. Heinz Company (processed foods and allied products) (1994-2013).

Principal Occupation During at Least the Past 5 Years:
Director or Trustee of various companies and trusts; andformerly, Assistant to the President of the United States and Secretary of the Cabinet (1990-1993); General Counsel to the United States Treasury Department (1989-1990); and Counselor to the Secretary and Assistant Secretary for Public Affairs and Public Liaison-United States Treasury Department (1988-1989).

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Independent Board Members(continued)



Name, Year of Birth and Address	Position	Length of Time Served	Number of Portfolios in Fund Complex Overseen by Board Member*	Other Directorships Held During at Least the Past 5 Years

J. Michael Luttig (1954) 300 S.E. 2nd Street Fort Lauderdale, FL 33301-1923	Trustee	Since 2009	136	Boeing Capital Corporation (aircraft financing) (2006-2013).

Principal Occupation During at Least the Past 5 Years:
Executive Vice President, General Counsel and member of the Executive Council, The Boeing Company (aerospace company) (2006-present); andformerly, Federal Appeals Court Judge, U.S. Court of Appeals for the Fourth Circuit (1991-2006).

David W. Niemiec (1949) 300 S.E. 2nd Street Fort Lauderdale, FL 33301-1923	Trustee	Since 2005	38	Hess Midstream Partners LP (oil and gas midstream infrastructure)(2017-present).

Principal Occupation During at Least the Past 5 Years:
Advisor, Saratoga Partners (private equity fund); andformerly, Managing Director, Saratoga Partners (1998-2001) and SBC Warburg Dillon Read (investment banking) (1997-1998); Vice Chairman, Dillon, Read & Co. Inc. (investment banking) (1991-1997); and Chief Financial Officer, Dillon, Read & Co. Inc. (1982-1997).

Larry D. Thompson (1945) 300 S.E. 2nd Street Fort Lauderdale, FL 33301-1923	Trustee	Since 2005	136	The Southern Company (energy company) (2014-present; previously 2010-2012), Graham Holdings Company (education and media organization) (2011-present) and Cbeyond, Inc. (business communications provider) (2010-2012).

Principal Occupation During at Least the Past 5 Years:
Director of various companies; Counsel, Finch McCranie, LLP (law firm) (2015-present); Independent Compliance Monitor and Auditor, Volkswagen AG (manufacturer of automobiles and commercial vehicles) (2017-present); John A. Sibley Professor of Corporate and Business Law, University of Georgia School of Law (2015-present; previously 2011-2012); andformerly, Executive Vice President – Government Affairs, General Counsel and Corporate Secretary, PepsiCo, Inc. (consumer products) (2012-2014); Senior Vice President – Government Affairs, General Counsel and Secretary, PepsiCo, Inc. (2004-2011); Senior Fellow of The Brookings Institution (2003-2004); Visiting Professor, University of Georgia School of Law (2004); and Deputy Attorney General, U.S. Department of Justice (2001-2003).

Constantine D. Tseretopoulos (1954) 300 S.E. 2nd Street Fort Lauderdale, FL 33301-1923	Trustee	Since 1991	24	None

Principal Occupation During at Least the Past 5 Years:
Physician, Chief of Staff, owner and operator of the Lyford Cay Hospital (1987-present); director of various nonprofit organizations; andformerly, Cardiology Fellow, University of Maryland (1985-1987); and Internal Medicine Resident, Greater Baltimore Medical Center (1982-1985).

Robert E. Wade (1946) 300 S.E. 2nd Street Fort Lauderdale, FL 33301-1923	Trustee	Since 2006	38	El Oro Ltd (investments) (2003-present).

Principal Occupation During at Least the Past 5 Years:
Attorney at law engaged in private practice as a sole practitioner (1972-2008) and member of various boards.

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Interested Board Members and Officers



Name, Year of Birth and Address	Position	Length of Time Served	Number of Portfolios in Fund Complex Overseen by Board Member*	Other Directorships Held During at Least the Past 5 Years

**Gregory E. Johnson (1961) One Franklin Parkway San Mateo, CA 94403-1906	Trustee	Since 2007	150	None

Principal Occupation During at Least the Past 5 Years:
Chairman of the Board, Member – Office of the Chairman, Director and Chief Executive Officer, Franklin Resources, Inc.; officer and/or director or trustee, as the case may be, of some of the other subsidiaries of Franklin Resources, Inc. and of 42 of the investment companies in Franklin Templeton Investments; Vice Chairman, Investment Company Institute; andformerly, President, Franklin Resources, Inc. (1994-2015).

**Rupert H. Johnson, Jr. (1940) One Franklin Parkway San Mateo, CA 94403-1906	Chairman of the Board, Trustee and Vice President	Chairman of the Board, Trustee since 2013 and Vice President since 1996	136	None

Principal Occupation During at Least the Past 5 Years:
Vice Chairman, Member – Office of the Chairman and Director, Franklin Resources, Inc.; Director, Franklin Advisers, Inc.; Senior Vice President, Franklin Advisory Services, LLC; and officer and/or director or trustee, as the case may be, of some of the other subsidiaries of Franklin Resources, Inc. and of 40 of the investment companies in Franklin Templeton Investments.

Alison E. Baur (1964) One Franklin Parkway San Mateo, CA 94403-1906	Vice President	Since 2012	Not Applicable	Not Applicable

Principal Occupation During at Least the Past 5 Years:
Deputy General Counsel, Franklin Templeton Investments; and officer of some of the other subsidiaries of Franklin Resources, Inc. and of 44 of the investment companies in Franklin Templeton Investments.

Aliya S. Gordon (1973) One Franklin Parkway San Mateo, CA 94403-1906	Vice President	Since 2009	Not Applicable	Not Applicable

Principal Occupation During at Least the Past 5 Years:
Senior Associate General Counsel, Franklin Templeton Investments; and officer of 44 of the investment companies in Franklin Templeton Investments.

Steven J. Gray (1955) One Franklin Parkway San Mateo, CA 94403-1906	Vice President	Since 2009	Not Applicable	Not Applicable

Principal Occupation During at Least the Past 5 Years:
Senior Associate General Counsel, Franklin Templeton Investments; Vice President, Franklin Templeton Distributors, Inc. and FASA, LLC; and officer of 44 of the investment companies in Franklin Templeton Investments.

Matthew T. Hinkle (1971) One Franklin Parkway San Mateo, CA 94403-1906	Chief Executive Officer – Finance and Administration	Since 2017	Not Applicable	Not Applicable

Principal Occupation During at Least the Past 5 Years:
Senior Vice President, Franklin Templeton Services, LLC; officer of 44 of the investment companies in Franklin Templeton Investments; andformerly, Vice President, Global Tax (2012-April 2017) and Treasurer/Assistant Treasurer, Franklin Templeton Investments (2009-2017).

Robert G. Kubilis (1973) 300 S.E. 2nd Street Fort Lauderdale, FL 33301-1923	Chief Financial Officer, Chief Accounting Officer and Treasurer	Since 2017	Not Applicable	Not Applicable

Principal Occupation During at Least the Past 5 Years:
Treasurer, U.S. Fund Administration & Reporting, Franklin Templeton Investments; and officer of 16 of the investment companies in Franklin Templeton Investments.

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Interested Board Members and Officers(continued)



Name, Year of Birth and Address	Position	Length of Time Served	Number of Portfolios in Fund Complex Overseen by Board Member*	Other Directorships Held During at Least the Past 5 Years

Robert Lim (1948) One Franklin Parkway San Mateo, CA 94403-1906	Vice President – AML Compliance	Since 2016	Not Applicable	Not Applicable

Principal Occupation During at Least the Past 5 Years:
Vice President, Franklin Templeton Companies, LLC; Chief Compliance Officer, Franklin Templeton Distributors, Inc. and Franklin Templeton Investor Services, LLC; and officer of 44 of the investment companies in Franklin Templeton Investments.

Kimberly H. Novotny (1972) 300 S.E. 2nd Street Fort Lauderdale, FL 33301-1923	Vice President	Since 2013	Not Applicable	Not Applicable

Principal Occupation During at Least the Past 5 Years:
Associate General Counsel, Franklin Templeton Investments; Vice President and Corporate Secretary, Fiduciary Trust International of the South; Vice President, Templeton Investment Counsel, LLC; Assistant Secretary, Franklin Resources, Inc.; and officer of 44 of the investment companies in Franklin Templeton Investments.

Robert C. Rosselot (1960) 300 S.E. 2nd Street Fort Lauderdale, FL 33301-1923	Chief Compliance Officer	Since 2013	Not Applicable	Not Applicable

Principal Occupation During at Least the Past 5 Years:
Director, Global Compliance, Franklin Templeton Investments; Vice President, Franklin Templeton Companies, LLC; officer of 44 of the investment companies in Franklin Templeton Investments; andformerly, Senior Associate General Counsel, Franklin Templeton Investments (2007-2013); and Secretary and Vice President, Templeton Group of Funds (2004-2013).

Manraj S. Sekhon (1969) 7 Temasek Blvd., Suntec Tower 1,#38-03 Singapore 038987	President and Chief Executive Officer – Investment Management	Since August 2018	Not Applicable	Not Applicable

Principal Occupation During at Least the Past 5 Years:
Chief Investment Officer, Franklin Templeton Emerging Markets Equity; officer of four of the investment companies in Franklin Templeton Investments; andformerly, Chief Executive and Chief Investment Officer, Fullerton Fund Management Company Ltd. (2011-2016).

Navid J. Tofigh (1972) One Franklin Parkway San Mateo, CA 94403-1906	Vice President	Since 2015	Not Applicable	Not Applicable

Principal Occupation During at Least the Past 5 Years:
Associate General Counsel, Franklin Templeton Investments; and officer of 44 of the investment companies in Franklin Templeton Investments.

Craig S. Tyle (1960) One Franklin Parkway San Mateo, CA 94403-1906	Vice President	Since 2005	Not Applicable	Not Applicable

Principal Occupation During at Least the Past 5 Years:
General Counsel and Executive Vice President, Franklin Resources, Inc.; and officer of some of the other subsidiaries of Franklin Resources, Inc. and of 44 of the investment companies in Franklin Templeton Investments.

Lori A. Weber (1964) 300 S.E. 2nd Street Fort Lauderdale, FL 33301-1923	Vice President and Secretary	Vice President since 2011 and Secretary since 2013	Not Applicable	Not Applicable

Principal Occupation During at Least the Past 5 Years:
Senior Associate General Counsel, Franklin Templeton Investments; Assistant Secretary, Franklin Resources, Inc.; Vice President and Secretary, Templeton Investment Counsel, LLC; and officer of 44 of the investment companies in Franklin Templeton Investments.

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*We base the number of portfolios on each separate series of the U.S. registered investment companies within the Franklin Templeton Investments fund complex. These portfolios have a common investment manager or affiliated investment managers.

**Gregory E. Johnson is considered to be an interested person of the Fund under the federal securities laws due to his position as an officer and director of Franklin Resources, Inc. (Resources), which is the parent company of the Fund’s investment manager and distributor. Rupert H. Johnson, Jr. is considered to be an interested person of the Fund under the federal securities laws due to his position as an officer and director and major shareholder of Resources.

Note 1: Rupert H. Johnson, Jr. is the uncle of Gregory E. Johnson.

Note 2: Officer information is current as of the date of this report. It is possible that after this date, information about officers may change.

The Sarbanes-Oxley Act of 2002 and Rules adopted by the U.S. Securities and Exchange Commission require the Fund to disclose whether the Fund’s Audit Committee includes at least one member who is an audit committee financial expert within the meaning of such Act and Rules. The Fund’s Board has determined that there is at least one such financial expert on the Audit Committee and has designated each of Ann Torre Bates and David W. Niemiec as an audit committee financial expert. The Board believes that Ms. Bates and Mr. Niemiec qualify as such an expert in view of their extensive business background and experience. Ms. Bates has served as a member of the Fund Audit Committee since 2008. She currently serves as a director of Ares Capital Corporation (2010-present) and United Natural Foods, Inc. (2013-present) and was formerly a director of Navient Corporation from 2014 to 2016, SLM Corporation from 1997 to 2014 and Allied Capital Corporation from 2003 to 2010, Executive Vice President and Chief Financial Officer of NHP Incorporated from 1995 to 1997 and Vice President and Treasurer of US Airways, Inc. until 1995. Mr. Niemiec has served as a member of the Fund Audit Committee since 2005, currently serves as an Advisor to Saratoga Partners and was formerly its Managing Director from 1998 to 2001 and serves as a director of Hess Midstream Partners LP (2017-present). Mr. Niemiec was formerly a director of Emeritus Corporation from 1999 to 2010 and OSI Pharmaceuticals, Inc. from 2006 to 2010, Managing Director of SBC Warburg Dillon Read from 1997 to 1998, and was Vice Chairman from 1991 to 1997 and Chief Financial Officer from 1982 to 1997 of Dillon, Read & Co. Inc. As a result of such background and experience, the Board believes that Ms. Bates and Mr. Niemiec have each acquired an understanding of generally accepted accounting principles and financial statements, the general application of such principles in connection with the accounting estimates, accruals and reserves, and analyzing and evaluating financial statements that present a breadth and level of complexity of accounting issues generally comparable to those of the Fund, as well as an understanding of internal controls and procedures for financial reporting and an understanding of audit committee functions. Ms. Bates and Mr. Niemiec are independent Board members as that term is defined under the applicable U.S. Securities and Exchange Commission Rules and Releases.

The Statement of Additional Information (SAI) includes additional information about the board members and is available, without charge, upon request. Shareholders may call (800) DIALBEN/342-5236 to request the SAI.

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Shareholder Information

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 recent12-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 on FormN-Q. Shareholders may view the filed FormN-Q 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 the Fund’s financial reports every six months as well as an annual updated summary prospectus (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 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.



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		Annual Report and Shareholder Letter Templeton Developing Markets Trust Investment Manager Templeton Asset Management Ltd. Distributor Franklin Templeton Distributors, Inc. (800) DIAL BEN^® /342-5236 franklintempleton.com Shareholder Services (800)632-2301

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.


		© 2019 Franklin Templeton Investments. All rights reserved.		711 A 02/19

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.

(d) N/A

(f) Pursuant to Item 12(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 is David W. Niemiec and he is “independent” as defined under the relevant Securities and Exchange Commission Rules and Releases.

Item 4.

Principal Accountant Fees and Services.

(a) Audit Fees

The aggregate fees paid to the principal accountant for professional services rendered by the principal accountant for the audit of the registrant’s annual financial statements or for services that are normally provided by the principal accountant in connection with statutory and regulatory filings or engagements were $50,514 for the fiscal year ended December 31, 2018 and $51,859 for the fiscal year ended December 31, 2017.

(b) Audit-Related Fees

There were no fees paid to the principal accountant for assurance and related services rendered by the principal accountant to the registrant that are reasonably related to the performance of the audit of the registrant’s financial statements and are not reported under paragraph (a) of Item 4.

There were no fees paid to the principal accountant for assurance and related services rendered by the principal accountant to the registrant’s investment adviser and any entity controlling, controlled by or under common control with the investment adviser that provides ongoing services to the registrant that are reasonably related to the performance of the audit of their financial statements.

There were no fees paid to the principal accountant for professional services rendered by the principal accountant to the registrant for tax compliance, tax advice and tax planning.

There were no fees paid to the principal accountant for professional services rendered by the principal accountant to the registrant’s investment adviser and any entity controlling, controlled by or under

common control with the investment adviser that provides ongoing services to the registrant for tax compliance, tax advice and tax planning.

(d) All Other Fees

The aggregate fees paid to the principal accountant for products and services rendered by the principal accountant to the registrant not reported in paragraphs (a)-(c) of Item 4 were $555 for the fiscal year ended December 31, 2018 and $0 for the fiscal year ended December 31, 2017. The services for which these fees were paid included review of materials provided to the fund Board in connection with the investment management contract renewal process.

The aggregate fees paid to the principal accountant for products and services rendered by the principal accountant to the registrant’s investment adviser and any entity controlling, controlled by or under common control with the investment adviser that provides ongoing services to the registrant not reported in paragraphs (a)-(c) of Item 4 were $7,500 for the fiscal year ended December 31, 2018 and $14,000 for the fiscal year ended December 31, 2017. The services for which these fees were paid included the issuance of an Auditor’s Certificate for South Korean regulatory shareholders disclosures and benchmarking services in connection with the ICI TA survey.

(e) (1) The registrant’s audit committee is directly responsible for approving the services to be provided by the auditors, including:

(i)pre-approval of all audit and audit related services;

(ii)pre-approval of allnon-audit related services to be provided to the Fund by the auditors;

(iii)pre-approval of allnon-audit related services to be provided to the registrant by the auditors to the registrant’s investment adviser or to any entity that controls, is controlled by or is under common control with the registrant’s investment adviser and that provides ongoing services to the registrant where thenon-audit services relate directly to the operations or financial reporting of the registrant; and

(iv) establishment by the audit committee, if deemed necessary or appropriate, as an alternative to committeepre-approval of services to be provided by the auditors, as required by paragraphs (ii) and (iii) above, of policies and procedures to permit such services to bepre-approved by other means, such as through establishment of guidelines or by action of a designated member or members of the committee; provided the policies and procedures are detailed as to the particular service and the committee is informed of each service and such policies and procedures do not include delegation of audit committee responsibilities, as contemplated under the Securities Exchange Act of 1934, to management; subject, in the case of (ii) through (iv), to any waivers, exceptions or exemptions that may be available under applicable law or rules.

(e) (2) None of the services provided to the registrant described in paragraphs (b)-(d) of Item 4 were approved by the audit committee pursuant to paragraph (c)(7)(i)(C) of Rule2-01 of regulationS-X.

(f) No disclosures are required by this Item 4(f).

(g) The aggregatenon-audit fees paid to the principal accountant for services rendered by the principal accountant to the registrant and the registrant’s investment adviser and any entity controlling, controlled by or under common control with the investment adviser that provides ongoing services to the registrant were $8,055 for the fiscal year ended December 31, 2018 and $14,000 for the fiscal year ended December 31, 2017.

(h) The registrant’s audit committee of the board has considered whether the provision ofnon-audit services that were rendered to the registrant’s investment adviser (not including anysub-adviser whose role is primarily portfolio management and is subcontracted with or overseen by another investment adviser), and any entity controlling, controlled by, or under common control with the investment adviser that provides ongoing services to the registrant that were notpre-approved pursuant to paragraph (c)(7)(ii) of Rule2-01 of RegulationS-X is compatible with maintaining the principal accountant’s independence.

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 forClosed-End Management Investment Companies. N/A

Item 8.

Portfolio Managers ofClosed-End Management Investment Companies. N/A

Item 9.

Purchases of Equity Securities byClosed-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 FormN-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 were not effective related to internal control over financial reporting specific to the monitoring of market events following the close of trading in foreign stock markets that assist in determining the reliability of the values of the foreign securities held by the Fund and which may require the use of fair valuation factors to account for changes in the values of those securities subsequent to the local close of the foreign market but prior to the net asset calculation of the Fund. As a result, a material weakness exists at period end for the Templeton Developing Markets Trust. There are no misstatements to current and previously issued financial statements. However, this material weakness could result in misstatements of security values and unrealized gains or losses and associated disclosures that would result in a material misstatement of the interim or annual financial statements that would not be prevented or detected.

Effective November 1, 2018, the Registrant’s controls were enhanced through the implementation of a daily secondary review of market events following the close of trading on foreign stock markets to ensure the appropriate application of market level fair value. Registrant’s management believes this will facilitate the remediation of the control deficiency we have identified and strengthen the internal control over financial reporting. This material weakness will not be considered remediated until the applicable controls operate for a sufficient period of time and management has concluded, through testing, that these controls are operating effectively.

(b) Changes in Internal Controls. As described above, there have been changes in the Registrant’s internal control over financial reporting that occurred during the period covered by this report that have materially affected, or is reasonably likely to materially affect, the internal control over financial reporting.

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 February 26, 2019

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 February 26, 2019




By		/s/ ROBERT G. KUBILIS
		Robert G. Kubilis
		Chief Financial Officer and Chief Accounting Officer
		Date February 26, 2019

Templeton Developing Markets Trust Class C (TDMTX) N-CSRCertified annual shareholder report (management investment company)