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

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, DC 20549

FORM N-CSRS

CERTIFIED SHAREHOLDER REPORT OF REGISTERED MANAGEMENT INVESTMENT COMPANIES

Investment Company Act file number 811-06378

Templeton Developing Markets Trust

(Exact name of registrant as specified in charter)

300 S.E. 2^nd Street

, Fort Lauderdale, FL 33301-1923

(Address of principal executive offices) (Zip code)

Alison Baur, One Franklin Parkway, San Mateo, CA  94403-1906

(Name and address of agent for service)

Registrant's telephone number, including area code:(954)527-7500

Date of fiscal year end: 12/31

Date of reporting period: 6/30/22

Item 1. Reports to Stockholders.

a.)

The following is a copy of the report transmitted to shareholders pursuant to Rule30e-1 under the Investment Company Act of 1940, as amended (the “1940 Act”) (17 CFR 270.30e-1.)

b.)

Include a copy of each notice transmitted to stockholders in reliance on Rule 30e-3 under the Act (17 CFR 270.30e-3) that contains disclosures specified by paragraph (c)(3) of that rule.

Not Applicable

.

SEMIANNUAL

REPORT

AND

SHAREHOLDER

LETTER

Templeton

Developing

Markets

Trust

June

30,

2022

Sign

up

for

electronic

delivery

at

franklintempleton.com/edelivery

Not

FDIC

Insured

May

Lose

Value

No

Bank

Guarantee

franklintempleton.com

Semiannual

Report

1

SHAREHOLDER

LETTER

Dear

Shareholder:

The

inflation

genie

is

out

of

the

bottle

and

is

a

multi-layered

challenge

for

policymakers.

Rising

energy,

food

and

wage

costs

are

combining

to

raise

inflation

expectations,

which

if

left

unchecked

could

destabilize

the

global

economy.

Our

base

case

for

emerging

markets

(EM)

is

built

on

the

reality

they

entered

this

current

downturn

in

better

health

than

prior

cycles.

Corporate

leverage

is

lower,

financial

sector

and

other

reforms

have

been

implemented,

and

most

policymakers

are

pursuing

orthodox

monetary

and

fiscal

policies

to

address

challenges.

Nonetheless,

we

acknowledge

the

range

and

probability

of

alternative

scenarios

has

increased.

In

contrast

to

some

other

market

observers

expecting

a

contraction

in

EM

earnings

in

2023,

at

the

start

of

this

year

we

highlighted

the

likelihood

of

a

recovery

driven

by

India

and

China.

China’s

flexible

policy

response

and

India’s

resilient

gross

domestic

product

outlook

mean

a

recovery

remains

our

base

case.

China’s

transition

to

a

dynamic

zero-

COVID

policy

signals

an

easing

of

some,

but

not

all,

the

risks

associated

with

its

management

of

the

virus.

Factories

are

reopening,

port

bottlenecks

are

easing,

and

there

are

signs

that

supply

chain

disruptions

are

diminishing.

EM

central

banks

moved

to

raise

interest

rates

ahead

of

their

developed

market

peers

to

address

price

pressures

stemming

from

excess

demand.

The

Brazilian

central

bank

first

raised

the

Selic

target

rate

in

March

2021.

India,

Poland

and

other

emerging

markets

have

followed

suit

with

rate

hikes.

Chinese

policymakers

were

also

prudent

in

curbing

excess

demand

early,

creating

room

for

policy

easing

to

stimulate

growth

at

this

moment.

Investors’

flight

to

safety

away

from

EMs

toward

the

relative

safety

of

U.S.

dollar-based

assets

is

a

phenomenon

we

have

witnessed

in

prior

cycles.

Nevertheless,

markets

have

recognized

the

new

reality,

as

reflected

in

the

unusually

low

level

of

volatility

in

EM

currencies

relative

to

developed

markets,

and

EM

equity

market

outperformance

relative

to

developed

markets

in

2022.

We

are

committed

to

our

long-term

perspective

and

disciplined

investment

approach

as

we

conduct

a

rigorous,

fundamental

analysis

of

securities

with

a

regular

emphasis

on

investment

risk

management.

Historically,

patient

investors

have

achieved

rewarding

results

by

evaluating

their

goals,

diversifying

their

assets

globally

and

maintaining

a

disciplined

investment

program,

all

hallmarks

of

the

Templeton

investment

philosophy.

We

continue

to

recommend

investors

consult

financial

professionals

and

review

their

portfolios

to

design

a

long-term

strategy

and

portfolio

allocation

that

meet

their

individual

needs,

goals

and

risk

tolerance.

Templeton

Developing

Markets

Trust’s

semiannual

report

includes

more

detail

about

prevailing

conditions

and

a

discussion

about

investment

decisions

during

the

period.

Please

remember

all

securities

markets

fluctuate,

as

do

mutual

fund

share

prices.

We

thank

you

for

investing

with

Franklin

Templeton,

welcome

your

questions

and

comments,

and

look

forward

to

serving

your

investment

needs

in

the

years

ahead.

Sincerely,

Manraj

S.

Sekhon,

CFA

Chief

Investment

Officer

Franklin

Templeton

Emerging

Markets

Equity

This

letter

reflects

our

analysis

and

opinions

as

of

June

30,

2022,

unless

otherwise

indicated.

The

information

is

not

a

complete

analysis

of

every

aspect

of

any

market,

country,

industry,

security

or

fund.

Statements

of

fact

are

from

sources

considered

reliable.

CFA

®

is

a

trademark

owned

by

CFA

Institute.

franklintempleton.com

Semiannual

Report

2

Contents

Semiannual

Report

Templeton

Developing

Markets

Trust

3

Performance

Summary

7

Your

Fund’s

Expenses

9

Financial

Highlights

and

Schedule

of

Investments

10

Financial

Statements

19

Notes

to

Financial

Statements

23

Shareholder

Information

34

Visit

franklintempleton.com

for

fund

updates,

to

access

your

account,

or

to

find

helpful

financial

planning

tools.

3

franklintempleton.com

Semiannual

Report

SEMIANNUAL

REPORT

Templeton

Developing

Markets

Trust

This

semiannual

report

for

Templeton

Developing

Markets

Trust

covers

the

period

ended

June

30,

2022

.

Your

Fund’s

Goal

and

Main

Investments

The

Fund

seeks

long-term

capital

appreciation.

Under

normal

market

conditions,

the

Fund

invests

at

least

80%

of

its

net

assets

in

securities

of

companies

located

or

operating

in

“developing

market

countries,”

as

defined

in

the

Fund’s

prospectus.

Performance

Overview

The

Fund’s

Class

A

shares

posted

a

-22.22%

cumulative

total

return

for

the

six

months

under

review.

In

comparison,

the

Fund’s

benchmark,

the

MSCI

Emerging

Markets

(EM)

Index-NR,

which

measures

global

emerging

market

stock

performance,

posted

a

-17.63%

cumulative

total

return

for

the

same

period.

1

Please

note,

index

performance

is

provided

for

reference

and

we

do

not

attempt

to

track

an

index

but

rather

undertake

investments

on

the

basis

of

fundamental

research.

In

addition,

the

Fund’s

return

reflects

the

effect

of

fees

and

expenses

for

professional

management,

while

an

index

does

not

have

such

costs.

You

can

find

the

Fund’s

long-term

performance

data

in

the

Performance

Summary

beginning

on

page

7

.

Performance

data

represent

past

performance,

which

does

not

guarantee

future

results.

Investment

return

and

principal

value

will

fluctuate,

and

you

may

have

a

gain

or

loss

when

you

sell

your

shares.

Current

performance

may

differ

from

figures

shown.

For

most

recent

month-end

performance,

go

to

franklintempleton.com

or

call

(800)

342-5236

.

Economic

and

Market

Overview

Emerging

market

economies

continued

to

grow

during

the

six

months

ended

June

30,

2022,

though

high

levels

of

inflation,

the

spread

of

the

Omicron

variant

of

COVID-19

and

Russia’s

invasion

of

Ukraine

restrained

growth.

Many

emerging

market

central

banks

raised

their

benchmark

interest

rates

to

stem

inflation,

continuing

a

trend

that

started

in

early

2021.

During

the

period,

emerging

market

equities

were

hurt

by

investor

concerns

about

Russia’s

invasion

of

Ukraine,

rising

inflation

and

accompanying

interest-

rate

hikes,

and

Chinese

government

regulations

targeting

technology

companies.

Regarding

individual

countries,

China’s

year-on-year

economic

growth

rate

accelerated

in

the

first

quarter

of

2022,

though

poor

retail

sales

and

employment

figures

in

March

raised

the

possibility

of

an

economic

slowdown

in

the

near

future.

Taiwan’s

year-on-year

growth

rate

moderated

in

2022’s

first

quarter,

with

private

spending

slowing

and

government

spending

contracting.

South

Korea’s

year-on-

year

growth

rate

moderated

in

the

first

quarter

of

2022,

as

investment

and

spending

weakened

amidst

government

restrictions

to

slow

the

spread

of

COVID-19.

India’s

year-

on-year

growth

moderated

in

2022’s

first

quarter,

dragged

down

by

outbreaks

of

the

Omicron

variant,

high

energy

prices

and

supply

chain

disruptions.

Russia’s

year-on-year

growth

rate

moderated

in

2022’s

first

quarter

as

domestic

spending

weakened

amid

widespread

international

sanctions

imposed

in

response

to

the

country’s

invasion

of

Ukraine.

Brazil’s

year-on-year

growth

rate

accelerated

slightly

in

the

first

quarter

of

2022,

in

part

due

to

an

increase

in

private

spending

spurred

by

the

lifting

of

COVID-19-related

restrictions.

Overall

growth

was

constrained

by

net

negative

trade,

as

imports

outpaced

exports.

Turning

to

specific

countries’

monetary

policies,

the

People’s

Bank

of

China

lowered

its

benchmark

loan

prime

rate

once

during

the

period

in

an

ongoing

effort

to

spur

growth

in

the

face

of

COVID-19-related

headwinds

and

high

commodity

prices.

In

contrast,

the

central

banks

of

Taiwan,

South

Korea

and

India

all

raised

their

benchmark

interest

rates

multiple

times

to

stem

rising

inflation.

Russia’s

central

bank

raised

its

Geographic

Composition

6/30/22

%

of

Total

Net

Assets

Asia

80.8%

Latin

America

&

Caribbean

10.6%

North

America

3.6%

Europe

2.2%

Middle East & Africa

1.0%

Short-Term

Investments

&

Other

Net

Assets

1.8%

1.

Source:

Morningstar.

The

index

is

unmanaged

and

includes

reinvestment

of

any

income

or

distributions.

It

does

not

reflect

any

fees,

expenses

or

sales

charges.

One

cannot

invest

directly

in

an

index,

and

an

index

is

not

representative

of

the

Fund’s

portfolio.

Net

Returns

(NR)

include

income

net

of

tax

withholding

when

dividends

are

paid.

See

www.franklintempletondatasources.com

for

additional

data

provider

information.

The

dollar

value,

number

of

shares

or

principal

amount,

and

names

of

all

portfolio

holdings

are

listed

in

the

Fund’s

Schedule

of

Investments

(SOI).

The

SOI

begins

on

page

15

.

Templeton

Developing

Markets

Trust

4

franklintempleton.com

Semiannual

Report

benchmark

interest

rate

twice

in

February

2022,

including

more

than

doubling

its

rate

to

offset

ruble

devaluation

caused

by

sanctions

imposed

against

the

country

following

its

invasion

of

Ukraine.

In

subsequent

months,

the

central

bank

cut

the

benchmark

rate

multiple

times,

ending

the

period

slightly

higher

than

where

it

started.

The

central

bank

of

Brazil

raised

its

benchmark

interest

rate

four

times

during

the

period,

bringing

the

number

of

consecutive

raises

to

11

as

the

country

battles

persistent

high

inflation.

In

this

environment,

emerging

market

stocks,

as

measured

by

the

MSCI

EM

Index-NR,

posted

a

-17.63%

total

return

for

the

six

months

ended

June

30,

2022.

1

Chinese

equities

declined

during

period

due

to

regulatory

pressure

on

technology

companies,

a

slowdown

in

the

property

market

and

new

COVID-19

outbreaks.

Larger

losses

were

prevented

by

modest

gains

in

the

second

half

of

the

period,

sparked

by

better-than-expected

macroeconomic

data,

reduced

COVID-

19-related

restrictions

and

fiscal

policy

support.

Taiwanese

equities

fell

significantly

during

the

period

on

expectations

of

weakening

global

demand

for

consumer

electronics

and

a

broader

global

selloff

of

growth

stocks.

Russian

equities

declined

significantly

in

the

first

two

months

of

2022

in

the

run-up

to

Russia’s

invasion

of

Ukraine.

In

March,

major

index

providers

MSCI

and

FTSE

Russell

zero-valued

Russian

equities

and

dropped

them

from

their

benchmarks

following

the

Russian

government

closing

access

to

its

stock

markets.

Brazilian

equities

rose

slightly

during

the

period.

Valuations

shot

up

in

2022’s

first

quarter

due

to

high

foreign

inflows

and

high

commodity

prices,

but

most

of

those

gains

were

given

back

in

the

second

quarter

as

rising

fuel

costs

and

inflation

heightened

the

risk

of

social

unrest.

Investment

Strategy

We

employ

a

fundamental,

research-driven,

long-term

approach,

focusing

on

companies

with

sustainable

earnings

power

that

are

trading

at

a

discount

to

intrinsic

worth.

In

assessing

individual

investment

opportunities,

we

consider

a

variety

of

factors,

including

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.

We

also

focus

on

incorporating

environmental,

social

and

governance

(ESG)

factors

throughout

the

investment

process,

including

the

Fund’s

security-selection

and

portfolio

construction

process.

Manager’s

Discussion

Key

stock

contributors

to

absolute

performance

during

the

reporting

period

were

Daqo

New

Energy,

Guangzhou

Tinci

Materials

Technology

and

B3.

Daqo

New

Energy

is

a

Chinese

producer

of

polysilicon,

which

is

a

major

raw

material

for

solar

panels.

Shares

benefited

from

robust

2022

first-quarter

earnings

growth,

driven

by

higher

sales

volume

and

polysilicon

prices,

and

the

approval

of

a

US$120

million

share

repurchase

program.

Growing

demand

for

solar

panels,

as

higher

oil

and

natural

gas

prices

accelerate

a

shift

to

alternative

energy

sources,

further

boosted

market

confidence

in

the

company.

In

our

view,

Daqo’s

cost

competitiveness

coupled

with

strong

polysilicon

demand

continues

to

anchor

its

business.

Guangzhou

Tinci

Materials

Technology

is

a

world-leading

supplier

of

electrolytes

for

electric

vehicle

(EV)

batteries.

Although

shares

declined

in

early

2022

due

to

logistical

disruptions

resulting

from

lockdowns

in

parts

of

China,

easing

mobility

restrictions

coupled

with

strong

quarterly

corporate

results

and

a

recovery

in

new

EV

sales

in

May

led

to

a

recovery

in

the

later

part

of

the

reporting

period.

The

company

reported

record-high

2022

first-quarter

earnings

driven

by

higher

electrolyte

price

and

sales

volume

growth,

while

the

announcement

of

a

small

share

buyback

program

further

supported

market

sentiment

in

the

stock.

B3

is

Brazil’s

leading

financial

market

infrastructure

company,

providing

exchange

and

over-the-counter

(OTC)

trading

services

for

equities

and

derivatives.

Its

share

price

rose

sharply

in

the

first

quarter

of

2022,

in

line

with

Brazilian

equities

on

expectations

of

higher

trading

volume

and

fund

inflows

into

the

country’s

financials

markets.

Investors

turned

more

cautious

in

the

second

quarter,

however,

locking

in

earlier

gains

amid

a

correction

in

the

Brazilian

market

and

mixed

first-quarter

corporate

results.

We

reduced

our

position

in

the

stock

following

its

strong

price

appreciation

earlier

in

the

reporting

period.

Top

10

Countries

6/30/22

a

%

of

Total

Net

Assets

a

a

China

30.8%

South

Korea

20.6%

Taiwan

15.1%

India

9.4%

Brazil

8.3%

United

States

3.6%

Thailand

2.0%

Mexico

1.9%

United

Kingdom

1.5%

Hong

Kong

1.3%

Templeton

Developing

Markets

Trust

5

franklintempleton.com

Semiannual

Report

In

contrast,

key

detractors

from

absolute

performance

included

Samsung

Electronics,

Taiwan

Semiconductor

Manufacturing

Co.

(TSMC)

and

several

Russian

holdings,

including

LUKOIL,

Sberbank

of

Russia

and

Yandex.

Shares

in

leading

global

semiconductor

manufacturers

TSMC

and

South

Korean-based

Samsung

Electronics

declined

on

concerns

of

weaker

end-market

demand

for

information

technology

products.

However,

we

remain

confident

in

TSMC’s

technology

leadership

and

its

dominance

in

developing

cutting-edge

chips

and

Samsung

Electronics’

solid

market

position

in

its

key

business

areas.

Taking

a

long-term

view,

we

believe

both

stocks

are

well

placed

to

benefit

from

sustained

structural

demand

for

advanced

chips

driven

by

higher

performance

computing

(HPC),

automotive

applications

and

digitalization.

Operationally,

TSMC’s

2022

first-quarter

earnings

and

second-quarter

management

guidance

exceeded

market

expectations.

While

Samsung

Electronics

reported

solid

first-quarter

operating

profits,

preliminary

second-quarter

earnings

were

slightly

below

consensus

mainly

due

to

weak

smartphone

and

consumer

electronics

demand.

Before

Russia’s

invasion

of

Ukraine,

we

had

maintained

our

position

in

Russian

stocks

including

LUKOIL,

a

major

Russian

oil

producer,

Sberbank,

one

of

the

biggest

banks

in

the

country,

and

Yandex,

Russia’s

largest

search

engine,

given

the

belief

that

diplomacy

could

resolve

the

issue.

However,

Russian

equities

and

the

Russian

ruble

declined

sharply

following

Russia’s

invasion

of

Ukraine

and

extensive

sanctions

from

the

rest

of

the

world.

We

trimmed

the

portfolio’s

holding

in

Sberbank

as

a

risk

mitigation

measure.

Moreover,

index

compilers

MSCI

and

FTSE

dropped

Russia

from

their

benchmarks

in

early

March

at

a

zero-value,

due

to

non-fulfillment

of

market

accessibility

requirements.

Although

trading

in

the

domestic

market

resumed

in

late-

March,

following

a

trading

suspension

on

February

28,

2022,

foreigners

remained

barred

from

selling,

while

trading

in

Russian

American

and

Global

Depositary

Receipts

(ADRs/

GDRs)

listed

in

international

exchanges

also

remained

suspended

at

the

time

of

this

writing.

Given

these

facts,

on

March

4,

2022,

Russian

company

securities

were

fair

valued

at

zero

by

the

Franklin

Templeton

Valuation

Committee.

In

concluding

upon

a

zero

value,

the

continued

uncertainty

in

the

market,

restrictions

on

trading

the

shares

both

onshore

and

offshore,

and

a

lack

of

any

price

discovery

mechanism

to

provide

indications

of

residual

value

were

all

taken

into

account.

In

the

last

six

months,

the

portfolio

increased

its

holdings

in

Hong

Kong,

Brazil

and

U.S.-listed

companies

with

significant

exposure

to

emerging

markets,

as

we

continued

to

identify

companies

with

sustainable

earnings

power

trading

at

a

discount

to

their

intrinsic

worth.

In

terms

of

sectors,

additions

were

undertaken

in

energy,

health

care,

consumer

discretionary

and

materials.

New

additions

to

the

portfolio

included

Brazil’s

national

oil

and

gas

company

Petroleo

Brasileiro

(Petrobras),

Hong

Kong-listed

major

power

tool

manufacturer

Techtronic

Industries

and

South

Korean

EV

battery

manufacturer

LG

Chem.

We

also

added

to

our

existing

high-conviction

portfolio

holdings

with

purchases

in

Genpact,

a

U.S.-listed

technology

services

company

with

significant

exposure

to

India,

the

previously

mentioned

Guangzhou

Tinci

Materials

Technology,

and

MediaTek,

a

major

Taiwanese

chip

designer

for

smartphones

and

other

technology

devices.

In

contrast,

the

Fund

reduced

its

investments

in

Taiwan,

China,

South

Korea

and

India.

Sectors

which

experienced

the

largest

sales

were

information

technology,

financials,

communication

services

and

real

estate.

In

terms

of

key

sales,

we

trimmed

our

positions

in

several

key

holdings,

including

the

previously

mentioned

Samsung

Electronics

and

TSMC,

major

Chinese

e-commerce

company

Alibaba

Group

Holding,

and

leading

Chinese

internet

services

company

Tencent

Holdings,

to

realign

the

portfolio.

We

also

closed

positions

in

South

Africa-based

internet

group

Naspers

and

Russian

oil

company

Gazprom.

For

the

six

months

ended

June

30,

2022,

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

in

securities

with

non-U.S.

currency

exposure.

Top

10

Holdings

6/30/22

Company

Industry

,

Country

%

of

Total

Net

Assets

a

a

Taiwan

Semiconductor

Manufacturing

Co.

Ltd.

11.1%

Semiconductors

&

Semiconductor

Equipment,

Taiwan

Samsung

Electronics

Co.

Ltd.

8.8%

Technology

Hardware,

Storage

&

Peripherals,

South

Korea

Alibaba

Group

Holding

Ltd.

6.3%

Internet

&

Direct

Marketing

Retail,

China

ICICI

Bank

Ltd.

6.2%

Banks,

India

Tencent

Holdings

Ltd.

4.1%

Interactive

Media

&

Services,

China

MediaTek

,

Inc.

3.3%

Semiconductors

&

Semiconductor

Equipment,

Taiwan

NAVER

Corp.

3.1%

Interactive

Media

&

Services,

South

Korea

Guangzhou

Tinci

Materials

Technology

Co.

Ltd.

3.0%

Chemicals,

China

China

Merchants

Bank

Co.

Ltd.

2.8%

Banks,

China

LG

Corp.

2.6%

Industrial

Conglomerates,

South

Korea

Templeton

Developing

Markets

Trust

6

franklintempleton.com

Semiannual

Report

We

thank

you

for

your

continued

participation

in

Templeton

Developing

Markets

Trust

and

look

forward

to

serving

your

future

investment

needs.

Chetan

Sehgal,

CFA

Andrew

Ness

Portfolio

Management

Team

The

foregoing

information

reflects

our

analysis,

opinions

and

portfolio

holdings

as

of

June

30,

2022,

the

end

of

the

reporting

period.

The

way

we

implement

our

main

investment

strategies

and

the

resulting

portfolio

holdings

may

change

depending

on

factors

such

as

market

and

economic

conditions.

These

opinions

may

not

be

relied

upon

as

investment

advice

or

an

offer

for

a

particular

security.

The

information

is

not

a

complete

analysis

of

every

aspect

of

any

market,

country,

industry,

security

or

the

Fund.

Statements

of

fact

are

from

sources

considered

reliable,

but

the

investment

manager

makes

no

representation

or

warranty

as

to

their

completeness

or

accuracy.

Although

historical

performance

is

no

guarantee

of

future

results,

these

insights

may

help

you

understand

our

investment

management

philosophy.

Performance

Summary

as

of

June

30,

2022

Templeton

Developing

Markets

Trust

7

franklintempleton.com

Semiannual

Report

The

performance

table

does

not

reflect

any

taxes

that

a

shareholder

would

pay

on

Fund

dividends,

capital

gain

distributions,

if

any,

or

any

realized

gains

on

the

sale

of

Fund

shares.

Total

return

reflects

reinvestment

of

the

Fund’s

dividends

and

capital

gain

distributions,

if

any,

and

any

unrealized

gains

or

losses.

Your

dividend

income

will

vary

depending

on

dividends

or

interest

paid

by

securities

in

the

Fund’s

portfolio,

adjusted

for

operating

expenses

of

each

class.

Capital

gain

distributions

are

net

profits

realized

from

the

sale

of

portfolio

securities.

Performance

as

of

6/30/22

1

Cumulative

total

return

excludes

sales

charges.

Average

annual

total

return

includes

maximum

sales

charges.

Sales

charges

will

vary

depending

on

the

size

of

the

investment

and

the

class

of

share

purchased.

The

maximum

is

5.50%

and

the

minimum

is

0%.

Class

A:

5.50%

maximum

initial

sales

charge;

Advisor

Class:

no

sales

charges.

For

other

share

classes,

visit

franklintempleton.com.

Performance

data

represent

past

performance,

which

does

not

guarantee

future

results.

Investment

return

and

principal

value

will

fluctuate,

and

you

may

have

a

gain

or

loss

when

you

sell

your

shares.

Current

performance

may

differ

from

figures

shown.

For

most

recent

month-end

performance,

go

to

franklintempleton.com

or

call

(800)

342-5236

.

Share

Class

Cumulative

Total

Return

2

Average

Annual

Total

Return

3

–

A

4

6-Month

-22.22%

-26.49%

1-Year

-31.98%

-35.71%

5-Year

+6.38%

+0.10%

10-Year

+25.03%

+1.68%

Advisor

6-Month

-22.10%

-22.10%

1-Year

-31.77%

-31.77%

5-Year

+7.78%

+1.51%

10-Year

+28.38%

+2.53%

See

page

8

for

Performance

Summary

footnotes.

Templeton

Developing

Markets

Trust

Performance

Summary

8

franklintempleton.com

Semiannual

Report

Each

class

of

shares

is

available

to

certain

eligible

investors

and

has

different

annual

fees

and

expenses,

as

described

in

the

prospectus.

All

investments

involve

risks,

including

possible

loss

of

principal.

Special

risks

are

associated

with

foreign

investing,

including

currency

fluctuations,

economic

instability

and

political

developments.

Investments

in

developing

markets,

of

which

frontier

markets

are

a

subset,

involve

heightened

risks

related

to

the

same

factors,

in

addition

to

those

associated

with

these

markets’

smaller

size,

lesser

liquidity

and

lack

of

established

legal,

political,

business

and

social

frameworks

to

support

securities

markets.

Because

these

frameworks

are

typically

even

less

developed

in

frontier

markets,

as

well

as

various

factors

including

the

increased

potential

for

extreme

price

volatility,

illiquidity,

trade

barriers

and

exchange

controls,

the

risks

associated

with

developing

markets

are

magnified

in

frontier

markets.

The

Fund

is

designed

for

the

aggressive

portion

of

a

well-diversified

portfolio.

Events

such

as

the

spread

of

deadly

diseases,

disasters,

and

financial,

political

or

social

disruptions,

may

heighten

risks

and

adversely

affect

performance.

The

Fund’s

prospectus

also

includes

a

description

of

the

main

investment

risks.

Russia’s

military

invasion

of

Ukraine

in

February

2022,

the

resulting

responses

by

the

United

States

and

other

countries,

and

the

potential

for

wider

conflict

could

increase

volatility

and

uncertainty

in

the

financial

markets

and

adversely

affect

regional

and

global

economies.

The

United

States

and

other

countries

have

im-

posed

broad-ranging

economic

sanctions

on

Russia

and

certain

Russian

individuals,

banking

entities

and

corporations

as

a

response

to

its

invasion

of

Ukraine.

The

United

States

and

other

countries

have

also

imposed

economic

sanctions

on

Belarus

and

may

impose

sanctions

on

other

countries

that

support

Russia’s

military

invasion.

These

sanctions,

as

well

as

any

other

economic

consequences

related

to

the

invasion,

such

as

additional

sanctions,

boycotts

or

changes

in

consumer

or

purchaser

preferences

or

cyberattacks

on

governments,

companies

or

individuals,

may

further

decrease

the

value

and

liquidity

of

certain

Russian

securities

and

securities

of

issuers

in

other

countries

that

are

subject

to

economic

sanctions

related

to

the

invasion.

To

the

extent

that

the

Fund

has

exposure

to

Russian

investments

or

investments

in

countries

affected

by

the

invasion,

the

Fund’s

ability

to

price,

buy,

sell,

receive

or

deliver

such

investments

may

be

impaired.

The

Fund

could

determine

at

any

time

that

certain

of

the

most

affected

securities

have

zero

value.

In

addition,

any

exposure

that

the

Fund

may

have

to

counterparties

in

Russia

or

in

countries

affected

by

the

invasion

could

negatively

impact

the

Fund’s

portfolio.

The

extent

and

duration

of

Russia’s

military

actions

and

the

repercussions

of

such

actions

(including

any

retaliatory

actions

or

countermeasures

that

may

be

taken

by

those

subject

to

sanctions)

are

impos-

sible

to

predict,

but

could

result

in

significant

market

disruptions,

including

in

the

oil

and

natural

gas

markets,

and

may

negatively

affect

global

supply

chains,

inflation

and

global

growth.

These

and

any

related

events

could

significantly

impact

the

Fund’s

performance

and

the

value

of

an

investment

in

the

Fund,

even

beyond

any

direct

exposure

the

fund

may

have

to

Russian

issuers

or

issuers

in

other

countries

affected

by

the

invasion.

1.

The

Fund

has

an

expense

reduction

contractually

guaranteed

through

4/30/23.

Fund

investment

results

reflect

the

expense

reduction;

without

this

reduction,

the

results

would

have

been

lower.

2.

Cumulative

total

return

represents

the

change

in

value

of

an

investment

over

the

periods

indicated.

3.

Average

annual

total

return

represents

the

average

annual

change

in

value

of

an

investment

over

the

periods

indicated.

Return

for

less

than

one

year,

if

any,

has

not

been

annualized.

4.

Prior

to

9/10/18,

these

shares

were

offered

at

a

higher

initial

sales

charge

of

5.75%,

thus

actual

returns

(with

sales

charges)

would

have

differed.

Average

annual

total

returns

(with

sales

charges)

have

been

restated

to

reflect

the

current

maximum

initial

sales

charge

of

5.50%.

5.

Figures

are

as

stated

in

the

Fund’s

current

prospectus

and

may

differ

from

the

expense

ratios

disclosed

in

the

Your

Fund’s

Expenses

and

Financial

Highlights

sections

in

this

report.

In

periods

of

market

volatility,

assets

may

decline

significantly,

causing

total

annual

Fund

operating

expenses

to

become

higher

than

the

figures

shown.

See

www.franklintempletondatasources.com

for

additional

data

provider

information.

Total

Annual

Operating

Expenses

5

Share

Class

With

Fee

Waiver

Without

Fee

Waiver

A

1.38%

1.54%

Advisor

1.13%

1.29%

Your

Fund’s

Expenses

Templeton

Developing

Markets

Trust

9

franklintempleton.com

Semiannual

Report

As

a

Fund

shareholder,

you

can

incur

two

types

of

costs:

(1)

transaction

costs,

including

sales

charges

(loads)

on

Fund

purchases

and

redemptions;

and

(2)

ongoing

Fund

costs,

including

management

fees,

distribution

and

service

(12b-1)

fees,

and

other

Fund

expenses.

All

mutual

funds

have

ongoing

costs,

sometimes

referred

to

as

operating

expenses.

The

table

below

shows

ongoing

costs

of

investing

in

the

Fund

and

can

help

you

understand

these

costs

and

compare

them

with

those

of

other

mutual

funds.

The

table

assumes

a

$1,000

investment

held

for

the

six

months

indicated.

Actual

Fund

Expenses

The

table

below

provides

information

about

actual

account

values

and

actual

expenses

in

the

columns

under

the

heading

“Actual.”

In

these

columns

the

Fund’s

actual

return,

which

includes

the

effect

of

Fund

expenses,

is

used

to

calculate

the

“Ending

Account

Value”

for

each

class

of

shares.

You

can

estimate

the

expenses

you

paid

during

the

period

by

following

these

steps

(

of

course,

your

account

value

and

expenses

will

differ

from

those

in

this

illustration

):

Divide

your

account

value

by

$1,000

(

if

your

account

had

an

$8,600

value,

then

$8,600

÷

$1,000

=

8.6

).

Then

multiply

the

result

by

the

number

in

the

row

for

your

class

of

shares

under

the

headings

“Actual”

and

“Expenses

Paid

During

Period”

(

if

Actual

Expenses

Paid

During

Period

were

$7.50,

then

8.6

x

$7.50

=

$64.50

).

In

this

illustration,

the

actual

expenses

paid

this

period

are

$64.50.

Hypothetical

Example

for

Comparison

with

Other

Funds

Under

the

heading

“Hypothetical”

in

the

table,

information

is

provided

about

hypothetical

account

values

and

hypothetical

expenses

based

on

the

Fund’s

actual

expense

ratio

and

an

assumed

rate

of

return

of

5%

per

year

before

expenses,

which

is

not

the

Fund’s

actual

return.

This

information

may

not

be

used

to

estimate

the

actual

ending

account

balance

or

expenses

you

paid

for

the

period,

but

it

can

help

you

compare

ongoing

costs

of

investing

in

the

Fund

with

those

of

other

funds.

To

do

so,

compare

this

5%

hypothetical

example

for

the

class

of

shares

you

hold

with

the

5%

hypothetical

examples

that

appear

in

the

shareholder

reports

of

other

funds.

Please

note

that

expenses

shown

in

the

table

are

meant

to

highlight

ongoing

costs

and

do

not

reflect

any

transactional

costs.

Therefore,

information

under

the

heading

“Hypothetical”

is

useful

in

comparing

ongoing

costs

only,

and

will

not

help

you

compare

total

costs

of

owning

different

funds.

In

addition,

if

transactional

costs

were

included,

your

total

costs

would

have

been

higher.

1.

Expenses

are

equal

to

the

annualized

expense

ratio

for

the

six-month

period

as

indicated

above—in

the

far

right

column—multiplied

by

the

simple

average

account

value

over

the

period

indicated,

and

then

multiplied

by

181/365

to

reflect

the

one-half

year

period.

2.

Reflects

expenses

after

fee

waivers

and

expense

reimbursements.

Does

not

include

acquir

ed

fund

fees

and

expenses.

Actual

(actual

return

after

expenses)

Hypothetical

(5%

annual

return

before

expenses)

Share

Class

Beginning

Account

Value

1/1/22

Ending

Account

Value

6/30/22

Expenses

Paid

During

Period

1/1/22–6/30/22

1,2

Ending

Account

Value

6/30/22

Expenses

Paid

During

Period

1/1/22–6/30/22

1,2

a

Net

Annualized

Expense

Ratio

2

A

$1,000

$777.80

$6.08

$1,017.95

$6.90

1.38%

C

$1,000

$774.90

$9.37

$1,014.24

$10.63

2.13%

R

$1,000

$777.00

$7.18

$1,016.71

$8.15

1.63%

R6

$1,000

$779.50

$4.41

$1,019.83

$5.01

1.00%

Advisor

$1,000

$779.00

$4.98

$1,019.19

$5.66

1.13%

Templeton

Developing

Markets

Trust

Financial

Highlights

franklintempleton.com

Semiannual

Report

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

10

a

Six

Months

Ended

June

30,

2022

(unaudited)

Year

Ended

December

31,

2021

2020

2019

2018

2017

Class

A

Per

share

operating

performance

(for

a

share

outstanding

throughout

the

period)

Net

asset

value,

beginning

of

period

.....

$22.41

$25.42

$21.96

$18.17

$21.98

$15.82

Income

from

investment

operations

a

:

Net

investment

income

b

.............

0.15

0.17

c

0.13

0.32

d

0.20

0.15

Net

realized

and

unrealized

gains

(losses)

(5.13)

(1.66)

3.94

4.46

(3.76)

6.21

Total

from

investment

operations

........

(4.98)

(1.49)

4.07

4.78

(3.56)

6.36

Less

distributions

from:

Net

investment

income

..............

—

(0.49)

(0.26)

(0.76)

(0.25)

(0.20)

Net

realized

gains

.................

—

(1.03)

(0.35)

(0.23)

—

—

Total

distributions

...................

—

(1.52)

(0.61)

(0.99)

(0.25)

(0.20)

Net

asset

value,

end

of

period

..........

$17.43

$22.41

$25.42

$21.96

$18.17

$21.98

Total

return

e

.......................

(22.22)%

(5.80)%

18.67%

26.39%

(16.20)%

40.20%

Ratios

to

average

net

assets

f

Expenses

before

waiver

and

payments

by

affiliates

..........................

1.58%

1.54%

1.53%

1.52%

1.56%

1.73%

Expenses

net

of

waiver

and

payments

by

affiliates

..........................

1.38%

1.38%

1.38%

1.38%

1.34%

1.55%

g

Net

investment

income

...............

1.58%

0.64%

c

0.61%

1.57%

d

0.99%

0.76%

Supplemental

data

Net

assets,

end

of

period

(000’s)

........

$723,094

$969,062

$1,145,066

$1,067,300

$917,488

$1,178,838

Portfolio

turnover

rate

................

9.19%

21.89%

18.58%

17.71%

9.96%

8.89%

a

The

amount

shown

for

a

share

outstanding

throughout

the

period

may

not

correlate

with

the

Statement

of

Operations

for

the

period

due

to

the

timing

of

sales

and

repurchases

of

the

Fund’s

shares

in

relation

to

income

earned

and/or

fluctuating

fair

value

of

the

investments

of

the

Fund.

b

Based

on

average

daily

shares

outstanding.

c

Net

investment

income

per

share

includes

approximately

$0.06

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

0.41%.

d

Net

investment

income

per

share

includes

approximately

$0.09

per

share

related

to

income

received

in

the

form

of

special

dividends

in

connection

with

certain

Fund

holdings.

Excluding

this

amount,

the

ratio

of

net

investment

income

to

average

net

assets

would

have

been

1.15%.

e

Total

return

does

not

reflect

sales

commissions

or

contingent

deferred

sales

charges,

if

applicable,

and

is

not

annualized

for

periods

less

than

one

year.

f

Ratios

are

annualized

for

periods

less

than

one

year.

g

Benefit

of

expense

reduction

rounds

to

less

than

0.01%.

Templeton

Developing

Markets

Trust

Financial

Highlights

franklintempleton.com

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

Semiannual

Report

11

a

Six

Months

Ended

June

30,

2022

(unaudited)

Year

Ended

December

31,

2021

2020

2019

2018

2017

Class

C

Per

share

operating

performance

(for

a

share

outstanding

throughout

the

period)

Net

asset

value,

beginning

of

period

.....

$21.95

$24.83

$21.46

$17.75

$21.34

$15.38

Income

from

investment

operations

a

:

Net

investment

income

(loss)

b

........

0.07

(0.04)

c

(0.03)

0.20

d

0.08

—

e

Net

realized

and

unrealized

gains

(losses)

(5.01)

(1.58)

3.82

4.32

(3.67)

6.01

Total

from

investment

operations

........

(4.94)

(1.62)

3.79

4.52

(3.59)

6.01

Less

distributions

from:

Net

investment

income

..............

—

(0.23)

(0.07)

(0.58)

—

(0.05)

Net

realized

gains

.................

—

(1.03)

(0.35)

(0.23)

—

—

Total

distributions

...................

—

(1.26)

(0.42)

(0.81)

—

(0.05)

Net

asset

value,

end

of

period

..........

$17.01

$21.95

$24.83

$21.46

$17.75

$21.34

Total

return

f

........................

(22.51)%

(6.48)%

17.79%

25.42%

(16.78)%

39.19%

Ratios

to

average

net

assets

g

Expenses

before

waiver

and

payments

by

affiliates

..........................

2.33%

2.29%

2.28%

2.27%

2.31%

2.48%

Expenses

net

of

waiver

and

payments

by

affiliates

..........................

2.13%

2.13%

2.13%

2.13%

2.09%

2.30%

h

Net

investment

income

(loss)

..........

0.75%

(0.15)%

c

(0.15)%

0.82%

d

0.24%

0.01%

Supplemental

data

Net

assets,

end

of

period

(000’s)

........

$20,858

$30,956

$48,429

$56,860

$63,116

$172,523

Portfolio

turnover

rate

................

9.19%

21.89%

18.58%

17.71%

9.96%

8.89%

a

The

amount

shown

for

a

share

outstanding

throughout

the

period

may

not

correlate

with

the

Statement

of

Operations

for

the

period

due

to

the

timing

of

sales

and

repurchases

of

the

Fund’s

shares

in

relation

to

income

earned

and/or

fluctuating

fair

value

of

the

investments

of

the

Fund.

b

Based

on

average

daily

shares

outstanding.

c

Net

investment

income

per

share

includes

approximately

$0.06

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

(0.38)%.

d

Net

investment

income

per

share

includes

approximately

$0.09

per

share

related

to

income

received

in

the

form

of

special

dividends

in

connection

with

certain

Fund

holdings.

Excluding

this

amount,

the

ratio

of

net

investment

income

to

average

net

assets

would

have

been

0.40%.

e

Amount

rounds

to

less

than

$0.01

per

share.

f

Total

return

does

not

reflect

sales

commissions

or

contingent

deferred

sales

charges,

if

applicable,

and

is

not

annualized

for

periods

less

than

one

year.

g

Ratios

are

annualized

for

periods

less

than

one

year.

h

Benefit

of

expense

reduction

rounds

to

less

than

0.01%.

Templeton

Developing

Markets

Trust

Financial

Highlights

franklintempleton.com

Semiannual

Report

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

12

a

Six

Months

Ended

June

30,

2022

(unaudited)

Year

Ended

December

31,

2021

2020

2019

2018

2017

Class

R

Per

share

operating

performance

(for

a

share

outstanding

throughout

the

period)

Net

asset

value,

beginning

of

period

.....

$21.93

$24.96

$21.57

$17.86

$21.61

$15.57

Income

from

investment

operations

a

:

Net

investment

income

b

.............

0.13

0.13

c

0.07

0.29

d

0.15

0.10

Net

realized

and

unrealized

gains

(losses)

(5.02)

(1.65)

3.88

4.36

(3.70)

6.09

Total

from

investment

operations

........

(4.89)

(1.52)

3.95

4.65

(3.55)

6.19

Less

distributions

from:

Net

investment

income

..............

—

(0.48)

(0.21)

(0.71)

(0.20)

(0.15)

Net

realized

gains

.................

—

(1.03)

(0.35)

(0.23)

—

—

Total

distributions

...................

—

(1.51)

(0.56)

(0.94)

(0.20)

(0.15)

Net

asset

value,

end

of

period

..........

$17.04

$21.93

$24.96

$21.57

$17.86

$21.61

Total

return

e

.......................

(22.30)%

(6.03)%

18.43%

26.02%

(16.38)%

39.90%

Ratios

to

average

net

assets

f

Expenses

before

waiver

and

payments

by

affiliates

..........................

1.83%

1.80%

1.78%

1.77%

1.81%

1.98%

Expenses

net

of

waiver

and

payments

by

affiliates

..........................

1.63%

1.63%

1.62%

1.63%

1.59%

1.80%

g

Net

investment

income

...............

1.33%

0.52%

c

0.35%

1.32%

d

0.74%

0.51%

Supplemental

data

Net

assets,

end

of

period

(000’s)

........

$27,862

$37,252

$20,234

$20,016

$18,025

$22,512

Portfolio

turnover

rate

................

9.19%

21.89%

18.58%

17.71%

9.96%

8.89%

a

The

amount

shown

for

a

share

outstanding

throughout

the

period

may

not

correlate

with

the

Statement

of

Operations

for

the

period

due

to

the

timing

of

sales

and

repurchases

of

the

Fund’s

shares

in

relation

to

income

earned

and/or

fluctuating

fair

value

of

the

investments

of

the

Fund.

b

Based

on

average

daily

shares

outstanding.

c

Net

investment

income

per

share

includes

approximately

$0.06

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

0.29%.

d

Net

investment

income

per

share

includes

approximately

$0.09

per

share

related

to

income

received

in

the

form

of

special

dividends

in

connection

with

certain

Fund

holdings.

Excluding

this

amount,

the

ratio

of

net

investment

income

to

average

net

assets

would

have

been

0.90%.

e

Total

return

is

not

annualized

for

periods

less

than

one

year.

f

Ratios

are

annualized

for

periods

less

than

one

year.

g

Benefit

of

expense

reduction

rounds

to

less

than

0.01%.

Templeton

Developing

Markets

Trust

Financial

Highlights

franklintempleton.com

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

Semiannual

Report

13

a

Six

Months

Ended

June

30,

2022

(unaudited)

Year

Ended

December

31,

2021

2020

2019

2018

2017

Class

R6

Per

share

operating

performance

(for

a

share

outstanding

throughout

the

period)

Net

asset

value,

beginning

of

period

.....

$22.22

$25.23

$21.78

$18.02

$21.82

$15.70

Income

from

investment

operations

a

:

Net

investment

income

b

.............

0.18

0.27

c

0.25

0.39

d

0.28

0.22

Net

realized

and

unrealized

gains

(losses)

(5.08)

(1.66)

3.89

4.45

(3.75)

6.19

Total

from

investment

operations

........

(4.90)

(1.39)

4.14

4.84

(3.47)

6.41

Less

distributions

from:

Net

investment

income

..............

—

(0.59)

(0.34)

(0.85)

(0.33)

(0.29)

Net

realized

gains

.................

—

(1.03)

(0.35)

(0.23)

—

—

Total

distributions

...................

—

(1.62)

(0.69)

(1.08)

(0.33)

(0.29)

Net

asset

value,

end

of

period

..........

$17.32

$22.22

$25.23

$21.78

$18.02

$21.82

Total

return

e

.......................

(22.05)%

(5.42)%

19.16%

26.89%

(15.90)%

40.88%

Ratios

to

average

net

assets

f

Expenses

before

waiver

and

payments

by

affiliates

..........................

1.15%

1.14%

1.15%

1.15%

1.21%

1.28%

Expenses

net

of

waiver

and

payments

by

affiliates

..........................

1.00%

1.00%

1.00%

0.99%

0.96%

1.09%

g

Net

investment

income

...............

1.84%

1.06%

c

1.19%

1.96%

d

1.37%

1.22%

Supplemental

data

Net

assets,

end

of

period

(000’s)

........

$141,709

$214,696

$203,362

$120,791

$94,344

$103,734

Portfolio

turnover

rate

................

9.19%

21.89%

18.58%

17.71%

9.96%

8.89%

a

The

amount

shown

for

a

share

outstanding

throughout

the

period

may

not

correlate

with

the

Statement

of

Operations

for

the

period

due

to

the

timing

of

sales

and

repurchases

of

the

Fund’s

shares

in

relation

to

income

earned

and/or

fluctuating

fair

value

of

the

investments

of

the

Fund.

b

Based

on

average

daily

shares

outstanding.

c

Net

investment

income

per

share

includes

approximately

$0.06

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

0.83%.

d

Net

investment

income

per

share

includes

approximately

$0.09

per

share

related

to

income

received

in

the

form

of

special

dividends

in

connection

with

certain

Fund

holdings.

Excluding

this

amount,

the

ratio

of

net

investment

income

to

average

net

assets

would

have

been

1.54%.

e

Total

return

is

not

annualized

for

periods

less

than

one

year.

f

Ratios

are

annualized

for

periods

less

than

one

year.

g

Benefit

of

expense

reduction

rounds

to

less

than

0.01%.

Templeton

Developing

Markets

Trust

Financial

Highlights

franklintempleton.com

Semiannual

Report

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

14

a

Six

Months

Ended

June

30,

2022

(unaudited)

Year

Ended

December

31,

2021

2020

2019

2018

2017

Advisor

Class

Per

share

operating

performance

(for

a

share

outstanding

throughout

the

period)

Net

asset

value,

beginning

of

period

.....

$22.26

$25.27

$21.82

$18.06

$21.86

$15.73

Income

from

investment

operations

a

:

Net

investment

income

b

.............

0.18

0.24

c

0.18

0.37

d

0.25

0.20

Net

realized

and

unrealized

gains

(losses)

(5.10)

(1.66)

3.94

4.44

(3.75)

6.18

Total

from

investment

operations

........

(4.92)

(1.42)

4.12

4.81

(3.50)

6.38

Less

distributions

from:

Net

investment

income

..............

—

(0.56)

(0.32)

(0.82)

(0.30)

(0.25)

Net

realized

gains

.................

—

(1.03)

(0.35)

(0.23)

—

—

Total

distributions

...................

—

(1.59)

(0.67)

(1.05)

(0.30)

(0.25)

Net

asset

value,

end

of

period

..........

$17.34

$22.26

$25.27

$21.82

$18.06

$21.86

Total

return

e

.......................

(22.10)%

(5.55)%

19.01%

26.67%

(15.99)%

40.59%

Ratios

to

average

net

assets

f

Expenses

before

waiver

and

payments

by

affiliates

..........................

1.33%

1.29%

1.28%

1.27%

1.31%

1.48%

Expenses

net

of

waiver

and

payments

by

affiliates

..........................

1.13%

1.13%

1.13%

1.13%

1.09%

1.30%

g

Net

investment

income

...............

1.83%

0.92%

c

0.87%

1.82%

d

1.24%

1.01%

Supplemental

data

Net

assets,

end

of

period

(000’s)

........

$166,513

$221,055

$244,645

$195,065

$156,766

$179,125

Portfolio

turnover

rate

................

9.19%

21.89%

18.58%

17.71%

9.96%

8.89%

a

The

amount

shown

for

a

share

outstanding

throughout

the

period

may

not

correlate

with

the

Statement

of

Operations

for

the

period

due

to

the

timing

of

sales

and

repurchases

of

the

Fund’s

shares

in

relation

to

income

earned

and/or

fluctuating

fair

value

of

the

investments

of

the

Fund.

b

Based

on

average

daily

shares

outstanding.

c

Net

investment

income

per

share

includes

approximately

$0.06

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

0.69%.

d

Net

investment

income

per

share

includes

approximately

$0.09

per

share

related

to

income

received

in

the

form

of

special

dividends

in

connection

with

certain

Fund

holdings.

Excluding

this

amount,

the

ratio

of

net

investment

income

to

average

net

assets

would

have

been

1.40%.

e

Total

return

is

not

annualized

for

periods

less

than

one

year.

f

Ratios

are

annualized

for

periods

less

than

one

year.

g

Benefit

of

expense

reduction

rounds

to

less

than

0.01%.

Templeton

Developing

Markets

Trust

Schedule

of

Investments

(unaudited),

June

30,

2022

franklintempleton.com

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

Semiannual

Report

15

I

a

a

Industry

Shares

a

Value

a

Common

Stocks

92.5%

Brazil

2.6%

a

Americanas

SA

..................

Internet

&

Direct

Marketing

Retail

1,378,747

$

3,537,950

B3

SA

-

Brasil

Bolsa

Balcao

........

Capital

Markets

734,374

1,537,868

a

M

Dias

Branco

SA

................

Food

Products

208,370

1,039,123

a

TOTVS

SA

.....................

Software

83,041

369,057

Vale

SA

........................

Metals

&

Mining

1,346,229

19,693,007

a,b

XP,

Inc.,

A

......................

Capital

Markets

119,181

2,140,491

28,317,496

Cambodia

0.4%

a

NagaCorp

Ltd.

..................

Hotels,

Restaurants

&

Leisure

5,262,638

4,311,860

China

30.8%

a

Alibaba

Group

Holding

Ltd.

.........

Internet

&

Direct

Marketing

Retail

4,768,179

68,019,515

a

Baidu,

Inc.,

A

....................

Interactive

Media

&

Services

489,832

9,278,923

a,c

Brilliance

China

Automotive

Holdings

Ltd.

.........................

Automobiles

37,797,200

12,469,601

Chervon

Holdings

Ltd.

.............

Household

Durables

34,100

192,665

China

Merchants

Bank

Co.

Ltd.,

A

....

Banks

4,720,266

29,828,876

b

China

Resources

Cement

Holdings

Ltd.

Construction

Materials

15,598,694

10,509,111

China

Resources

Land

Ltd.

.........

Real

Estate

Management

&

Development

627,857

2,944,184

COSCO

SHIPPING

Ports

Ltd.

.......

Transportation

Infrastructure

2,489,319

1,760,410

a

Daqo

New

Energy

Corp.,

ADR

......

Semiconductors

&

Semiconductor

Equipment

300,494

21,449,262

d

Greentown

Service

Group

Co.

Ltd.,

Reg

S

...........................

Real

Estate

Management

&

Development

3,875,927

4,387,114

Guangzhou

Tinci

Materials

Technology

Co.

Ltd.,

A

....................

Chemicals

3,464,189

32,159,522

Health

&

Happiness

H&H

International

Holdings

Ltd.

..................

Food

Products

2,911,500

3,850,135

JD.com,

Inc.,

A

..................

Internet

&

Direct

Marketing

Retail

54,528

1,757,047

Keshun

Waterproof

Technologies

Co.

Ltd.,

A

.......................

Construction

Materials

3,522,225

6,942,456

Longshine

Technology

Group

Co.

Ltd.,

A

Software

1,723,099

6,496,477

NetEase

,

Inc.

...................

Entertainment

470,514

8,864,194

a

Ping

An

Bank

Co.

Ltd.,

A

...........

Banks

3,816,533

8,558,555

Ping

An

Insurance

Group

Co.

of

China

Ltd.,

H

.......................

Insurance

1,358,487

9,350,740

a

Prosus

NV

.....................

Internet

&

Direct

Marketing

Retail

365,666

23,677,076

Tencent

Holdings

Ltd.

.............

Interactive

Media

&

Services

981,186

44,413,245

a

Tencent

Music

Entertainment

Group,

ADR

........................

Entertainment

1,917,971

9,628,214

Uni

-President

China

Holdings

Ltd.

....

Food

Products

9,720,998

8,359,110

Weifu

High-Technology

Group

Co.

Ltd.,

B

...........................

Auto

Components

1,230,263

2,330,413

a,d

Wuxi

Biologics

Cayman,

Inc.,

144A,

Reg

S

...........................

Life

Sciences

Tools

&

Services

558,120

5,171,185

332,398,030

Egypt

0.0%

†

E-Finance

for

Digital

&

Financial

Investments

...................

IT

Services

72,191

51,853

Hong

Kong

1.3%

e

Techtronic

Industries

Co.

Ltd.

.......

Machinery

1,296,600

13,539,210

Hungary

0.7%

Richter

Gedeon

Nyrt

.

.............

Pharmaceuticals

436,594

7,900,408

India

9.4%

ACC

Ltd.

.......................

Construction

Materials

73,947

1,995,414

Bajaj

Holdings

&

Investment

Ltd.

.....

Diversified

Financial

Services

178,649

10,402,333

Templeton

Developing

Markets

Trust

Schedule

of

Investments

(unaudited)

franklintempleton.com

Semiannual

Report

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

16

a

a

Industry

Shares

a

Value

a

Common

Stocks

(continued)

India

(continued)

ICICI

Bank

Ltd.

..................

Banks

7,490,138

$

67,297,213

Infosys

Ltd.

.....................

IT

Services

571,004

10,613,991

Tata

Consultancy

Services

Ltd.

......

IT

Services

267,843

11,123,746

101,432,697

Indonesia

0.8%

Astra

International

Tbk

.

PT

.........

Automobiles

18,818,468

8,386,762

Mexico

1.9%

Banco

Santander

Mexico

SA

Institucion

de

Banca

Multiple

Grupo

Financiero

Santand

,

ADR

.................

Banks

3,726,457

18,799,976

a,d

Nemak

SAB

de

CV,

144A,

Reg

S

....

Auto

Components

8,826,866

1,746,977

20,546,953

Pakistan

0.1%

Habib

Bank

Ltd.

.................

Banks

3,510,074

1,567,102

Peru

0.4%

b

Intercorp

Financial

Services,

Inc.

.....

Banks

189,791

4,441,109

Philippines

0.3%

BDO

Unibank

,

Inc.

...............

Banks

1,411,517

2,837,995

Russia

0.0%

c,f

LUKOIL

PJSC,

ADR

..............

Oil,

Gas

&

Consumable

Fuels

414,906

—

a,c,f

Sberbank

of

Russia

PJSC

..........

Banks

5,058,740

—

a,c,d,f

VK

Co.

Ltd.,

GDR,

Reg

S

..........

Interactive

Media

&

Services

134,941

—

a,c,f

Yandex

NV,

A

...................

Interactive

Media

&

Services

424,692

—

—

South

Africa

1.0%

a

Massmart

Holdings

Ltd.

............

Food

&

Staples

Retailing

3,416,043

7,366,667

Netcare

Ltd.

....................

Health

Care

Providers

&

Services

3,929,970

3,470,695

10,837,362

South

Korea

20.6%

a,b,d

Delivery

Hero

SE,

144A,

Reg

S

......

Internet

&

Direct

Marketing

Retail

30,900

1,165,673

Fila

Holdings

Corp.

...............

Textiles,

Apparel

&

Luxury

Goods

386,780

8,467,409

KT

Skylife

Co.

Ltd.

...............

Media

452,147

2,875,373

a

LegoChem

Biosciences,

Inc.

........

Life

Sciences

Tools

&

Services

131,829

4,311,939

LG

Chem

Ltd.

...................

Chemicals

8,617

3,448,638

LG

Corp.

.......................

Industrial

Conglomerates

464,355

28,136,715

NAVER

Corp.

...................

Interactive

Media

&

Services

178,070

33,459,868

POSCO

Holdings,

Inc.

............

Metals

&

Mining

67,716

12,165,382

Samsung

Electronics

Co.

Ltd.

.......

Technology

Hardware,

Storage

&

Peripherals

2,150,657

95,559,717

Samsung

Life

Insurance

Co.

Ltd.

.....

Insurance

404,073

19,671,014

Soulbrain

Co.

Ltd.

................

Chemicals

74,700

13,288,269

222,549,997

Taiwan

15.1%

Hon

Hai

Precision

Industry

Co.

Ltd.

...

Electronic

Equipment,

Instruments

&

Components

1,930,224

7,087,440

Largan

Precision

Co.

Ltd.

..........

Electronic

Equipment,

Instruments

&

Components

14,015

814,609

MediaTek

,

Inc.

..................

Semiconductors

&

Semiconductor

Equipment

1,607,809

35,299,836

Taiwan

Semiconductor

Manufacturing

Co.

Ltd.

......................

Semiconductors

&

Semiconductor

Equipment

7,500,538

120,228,506

163,430,391

Templeton

Developing

Markets

Trust

Schedule

of

Investments

(unaudited)

franklintempleton.com

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

Semiannual

Report

17

See

Abbreviations

on

page

33

.

a

a

Industry

Shares

a

Value

a

Common

Stocks

(continued)

Thailand

2.0%

Kasikornbank

PCL

...............

Banks

3,150,973

$

13,467,131

Kiatnakin

Phatra

Bank

PCL

.........

Banks

2,196,220

3,864,297

Star

Petroleum

Refining

PCL

........

Oil,

Gas

&

Consumable

Fuels

1,035,600

355,713

Thai

Beverage

PCL

...............

Beverages

9,206,700

4,277,050

21,964,191

United

Kingdom

1.5%

Unilever

plc

.....................

Personal

Products

345,109

15,727,415

United

States

3.6%

Cognizant

Technology

Solutions

Corp.,

A

...........................

IT

Services

264,642

17,860,688

Genpact

Ltd.

....................

IT

Services

490,902

20,794,609

38,655,297

Total

Common

Stocks

(Cost

$861,070,734)

.....................................

998,896,128

a

Preferred

Stocks

5.7%

Brazil

5.7%

g

Banco

Bradesco

SA,

ADR,

6.5%

.....

Banks

6,818,960

22,229,810

g

Itau

Unibanco

Holding

SA,

ADR,

2.78%

Banks

4,414,091

18,892,309

g

Petroleo

Brasileiro

SA,

28.84%

......

Oil,

Gas

&

Consumable

Fuels

3,800,385

20,281,016

61,403,135

Total

Preferred

Stocks

(Cost

$78,924,257)

......................................

61,403,135

a

a

a

a

a

Escrows

and

Litigation

Trusts

0.0%

a,c

Hemisphere

Properties

India

Ltd.,

Escrow

Account

................

395,958

—

Total

Escrows

and

Litigation

Trusts

(Cost

$–)

...................................

—

Total

Long

Term

Investments

(Cost

$939,994,991)

...............................

1,060,299,263

Short

Term

Investments

1.7%

a

a

Industry

Shares

a

Value

a

a

a

a

a

a

Money

Market

Funds

1.7%

United

States

1.7%

h,i

Institutional

Fiduciary

Trust

-

Money

Market

Portfolio,

0.895%

.........

18,526,150

18,526,150

Total

Money

Market

Funds

(Cost

$18,526,150)

..................................

18,526,150

a

a

a

a

a

Total

Short

Term

Investments

(Cost

$18,526,150

)

................................

18,526,150

a

a

a

Total

Investments

(Cost

$958,521,141)

99.9%

...................................

$1,078,825,413

Other

Assets,

less

Liabilities

0.1%

.............................................

1,211,551

Net

Assets

100.0%

...........................................................

$1,080,036,964

a

a

a

†

Rounds

to

less

than

0.1%

of

net

assets.

a

Non-income

producing.

b

A

portion

or

all

of

the

security

is

on

loan

at

June

30,

2022.

See

Note

1(d).

Templeton

Developing

Markets

Trust

Schedule

of

Investments

(unaudited)

franklintempleton.com

Semiannual

Report

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

18

c

Fair

valued

using

significant

unobservable

inputs.

See

Note

9

regarding

fair

value

measurements.

d

Security

was

purchased

pursuant

to

Rule

144A

or

Regulation

S

under

the

Securities

Act

of

1933.

144A

securities

may

be

sold

in

transactions

exempt

from

registration

only

to

qualified

institutional

buyers

or

in

a

public

offering

registered

under

the

Securities

Act

of

1933.

Regulation

S

securities

cannot

be

sold

in

the

United

States

without

either

an

effective

registration

statement

filed

pursuant

to

the

Securities

Act

of

1933,

or

pursuant

to

an

exemption

from

registration.

At

June

30,

2022,

the

aggregate

value

of

these

securities

was

$12,470,949,

representing

1.2%

of

net

assets.

e

A

portion

or

all

of

the

security

purchased

on

a

delayed

delivery

basis.

See

Note

1(c).

f

See

Note

6

regarding

investments

in

Russian

securities.

g

Variable

rate

security.

The

rate

shown

represents

the

yield

at

period

end.

h

See

Note

3(f)

regarding

investments

in

affiliated

management

investment

companies.

i

The

rate

shown

is

the

annualized

seven-day

effective

yield

at

period

end.

Templeton

Developing

Markets

Trust

Financial

Statements

Statement

of

Assets

and

Liabilities

June

30,

2022

(unaudited)

franklintempleton.com

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

Semiannual

Report

19

Templeton

Developing

Markets

Trust

Assets:

Investments

in

securities:

Cost

-

Unaffiliated

issuers

...................................................................

$939,994,991

Cost

-

Non-controlled

affiliates

(Note

3

f

)

........................................................

18,526,150

Value

-

Unaffiliated

issuers

(Includes

securities

loaned

of

$7,429,737)

.................................

$1,060,299,263

Value

-

Non-controlled

affiliates

(Note

3

f

)

........................................................

18,526,150

Foreign

currency,

at

value

(cost

$1,654,667)

......................................................

1,654,701

Receivables:

Investment

securities

sold

...................................................................

2,130,242

Capital

shares

sold

........................................................................

301,023

Dividends

...............................................................................

7,782,375

Total

assets

..........................................................................

1,090,693,754

Liabilities:

Payables:

Investment

securities

purchased

..............................................................

2,551,687

Capital

shares

redeemed

...................................................................

1,395,257

Management

fees

.........................................................................

511,670

Distribution

fees

..........................................................................

182,577

Transfer

agent

fees

........................................................................

161,348

Trustees'

fees

and

expenses

.................................................................

61,488

Deferred

tax

...............................................................................

4,974,372

Accrued

expenses

and

other

liabilities

...........................................................

818,391

Total

liabilities

.........................................................................

10,656,790

Net

assets,

at

value

.................................................................

$1,080,036,964

Net

assets

consist

of:

Paid-in

capital

.............................................................................

$998,055,705

Total

distributable

earnings

(losses)

.............................................................

81,981,259

Net

assets,

at

value

.................................................................

$1,080,036,964

Templeton

Developing

Markets

Trust

Financial

Statements

Statement

of

Assets

and

Liabilities

(continued)

June

30,

2022

(unaudited)

franklintempleton.com

Semiannual

Report

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

20

Templeton

Developing

Markets

Trust

Class

A:

Net

assets,

at

value

.......................................................................

$723,094,295

Shares

outstanding

........................................................................

41,475,029

Net

asset

value

per

share

a

..................................................................

$17.43

Maximum

offering

price

per

share

(net

asset

value

per

share

÷

94.50%)

................................

$18.44

Class

C:

Net

assets,

at

value

.......................................................................

$20,858,021

Shares

outstanding

........................................................................

1,226,353

Net

asset

value

and

maximum

offering

price

per

share

a

.............................................

$17.01

Class

R:

Net

assets,

at

value

.......................................................................

$27,861,980

Shares

outstanding

........................................................................

1,635,087

Net

asset

value

and

maximum

offering

price

per

share

.............................................

$17.04

Class

R6:

Net

assets,

at

value

.......................................................................

$141,709,332

Shares

outstanding

........................................................................

8,184,075

Net

asset

value

and

maximum

offering

price

per

share

.............................................

$17.32

Advisor

Class:

Net

assets,

at

value

.......................................................................

$166,513,336

Shares

outstanding

........................................................................

9,605,455

Net

asset

value

and

maximum

offering

price

per

share

.............................................

$17.34

a

Redemption

price

is

equal

to

net

asset

value

less

contingent

deferred

sales

charges,

if

applicable.

Templeton

Developing

Markets

Trust

Financial

Statements

Statement

of

Operations

for

the

six

months

ended

June

30,

2022

(unaudited)

franklintempleton.com

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

Semiannual

Report

21

Templeton

Developing

Markets

Trust

Investment

income:

Dividends:

(net

of

foreign

taxes

of

$1,694,128)

Unaffiliated

issuers

........................................................................

$18,492,960

Non-controlled

affiliates

(Note

3

f

)

.............................................................

8,408

Income

from

securities

loaned:

Unaffiliated

entities

(net

of

fees

and

rebates)

.....................................................

3,243

Non-controlled

affiliates

(Note

3

f

)

.............................................................

45

Total

investment

income

...................................................................

18,504,656

Expenses:

Management

fees

(Note

3

a

)

...................................................................

6,540,504

Distribution

fees:

(Note

3c

)

    Class

A

................................................................................

1,036,350

    Class

C

................................................................................

126,782

    Class

R

................................................................................

79,738

Transfer

agent

fees:

(Note

3e

)

    Class

A

................................................................................

913,273

    Class

C

................................................................................

27,904

    Class

R

................................................................................

35,134

    Class

R6

...............................................................................

32,832

    Advisor

Class

............................................................................

209,683

Custodian

fees

.............................................................................

111,597

Reports

to

shareholders

fees

..................................................................

124,424

Registration

and

filing

fees

....................................................................

59,401

Professional

fees

...........................................................................

59,123

Trustees'

fees

and

expenses

..................................................................

51,327

Other

....................................................................................

27,804

Total

expenses

.........................................................................

9,435,876

Expenses

waived/paid

by

affiliates

(Note

3

f

and

3

g

)

..............................................

(1,200,847)

Net

expenses

.........................................................................

8,235,029

Net

investment

income

................................................................

10,269,627

Realized

and

unrealized

gains

(losses):

Net

realized

gain

(loss)

from:

Investments:

(net

of

foreign

taxes

of

$595,094)

Unaffiliated

issuers

......................................................................

15,180,698

Foreign

currency

transactions

................................................................

(362,895)

Net

realized

gain

(loss)

..................................................................

14,817,803

Net

change

in

unrealized

appreciation

(depreciation)

on:

Investments:

Unaffiliated

issuers

......................................................................

(348,635,102)

Translation

of

other

assets

and

liabilities

denominated

in

foreign

currencies

..............................

(207,629)

Change

in

deferred

taxes

on

unrealized

appreciation

...............................................

2,192,201

Net

change

in

unrealized

appreciation

(depreciation)

............................................

(346,650,530)

Net

realized

and

unrealized

gain

(loss)

............................................................

(331,832,727)

Net

increase

(decrease)

in

net

assets

resulting

from

operations

..........................................

$(321,563,100)

Templeton

Developing

Markets

Trust

Financial

Statements

Statements

of

Changes

in

Net

Assets

franklintempleton.com

Semiannual

Report

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

22

Templeton

Developing

Markets

Trust

Six

Months

Ended

June

30,

2022

(unaudited)

Year

Ended

December

31,

2021

Increase

(decrease)

in

net

assets:

Operations:

Net

investment

income

.................................................

$10,269,627

$11,912,287

Net

realized

gain

(loss)

.................................................

14,817,803

100,005,000

Net

change

in

unrealized

appreciation

(depreciation)

...........................

(346,650,530)

(203,405,882)

Net

increase

(decrease)

in

net

assets

resulting

from

operations

................

(321,563,100)

(91,488,595)

Distributions

to

shareholders:

Class

A

.............................................................

—

(62,274,156)

Class

C

.............................................................

—

(1,685,134)

Class

R

.............................................................

—

(2,437,100)

Class

R6

............................................................

—

(14,572,217)

Advisor

Class

........................................................

—

(14,959,729)

Total

distributions

to

shareholders

..........................................

—

(95,928,336)

Capital

share

transactions:

(Note

2

)

Class

A

.............................................................

(34,348,483)

(54,051,626)

Class

C

.............................................................

(3,509,529)

(13,723,889)

Class

R

.............................................................

(1,255,888)

22,503,442

Class

R6

............................................................

(26,154,557)

38,635,249

Advisor

Class

........................................................

(6,153,367)

5,339,711

Total

capital

share

transactions

............................................

(71,421,824)

(1,297,113)

Net

increase

(decrease)

in

net

assets

...................................

(392,984,924)

(188,714,044)

Net

assets:

Beginning

of

period

.....................................................

1,473,021,888

1,661,735,932

End

of

period

..........................................................

$1,080,036,964

$1,473,021,888

Templeton

Developing

Markets

Trust

23

franklintempleton.com

Semiannual

Report

Notes

to

Financial

Statements

(unaudited)

1.

Organization

and

Significant

Accounting

Policies

Templeton

Developing

Markets

Trust (Fund)

is

registered

under

the

Investment

Company

Act

of

1940

(1940

Act)

as

an

open-end

management

investment

company

and

applies

the

specialized

accounting

and

reporting

guidance

in

U.S.

Generally

Accepted

Accounting

Principles

(U.S.

GAAP).

The

Fund

offers

five

classes

of

shares:

Class

A,

Class

C,

Class

R,

Class

R6

and

Advisor

Class.

Class

C

shares

automatically

convert

to

Class

A

shares

on

a

monthly

basis,

after

they

have

been

held

for

8

years.

Each

class

of

shares

may

differ

by

its

initial

sales

load,

contingent

deferred

sales

charges,

voting

rights

on

matters

affecting

a

single

class,

its

exchange

privilege

and

fees

due

to

differing

arrangements

for

distribution

and

transfer

agent

fees. 

The

following

summarizes

the Fund's

significant

accounting

policies.

a.

Financial

Instrument

Valuation 

The

Fund's

investments

in

financial

instruments

are

carried

at

fair

value

daily.

Fair

value

is

the

price

that

would

be

received

to

sell

an

asset

or

paid

to

transfer

a

liability

in

an

orderly

transaction

between

market

participants

on

the

measurement

date.

The

Fund

calculates

the

net

asset

value

(NAV)

per

share

each business

day as

of

4

p.m.

Eastern

time

or

the

regularly

scheduled

close

of

the

New

York

Stock

Exchange

(NYSE),

whichever

is

earlier.

Under

compliance

policies

and

procedures

approved

by

the

Fund's Board

of

Trustees

(the

Board),

the Fund's

administrator

has

responsibility

for

oversight

of

valuation,

including

leading

the

cross-functional

Valuation

Committee

(VC).

The

Fund

may

utilize

independent

pricing

services,

quotations

from

securities

and

financial

instrument

dealers,

and

other

market

sources

to

determine

fair

value. 

Equity

securities

listed

on

an

exchange

or

on

the

NASDAQ

National

Market

System

are

valued

at

the

last

quoted

sale

price

or

the

official

closing

price of

the

day,

respectively.

Foreign

equity

securities

are

valued

as

of

the

close

of

trading

on

the

foreign

stock

exchange

on

which

the

security

is

primarily

traded,

or

as

of

4

p.m.

Eastern

time.

The

value

is

then

converted

into

its

U.S.

dollar

equivalent

at

the

foreign

exchange

rate

in

effect

at

4

p.m.

Eastern

time

on

the

day

that

the

value

of

the

security

is

determined.

Over-the-counter

(OTC)

securities

are

valued

within

the

range

of

the

most

recent

quoted

bid

and

ask

prices.

Securities

that

trade

in

multiple

markets

or

on

multiple

exchanges

are

valued

according

to

the

broadest

and

most

representative

market.

Certain

equity

securities

are

valued

based

upon

fundamental

characteristics

or

relationships

to

similar

securities. 

Investments

in open-end mutual

funds

are

valued

at

the

closing

NAV.

The

Fund

has

procedures

to

determine

the

fair

value

of

financial

instruments

for

which

market

prices

are

not

reliable

or

readily

available.

Under

these

procedures,

the Fund

primarily

employs

a

market-based

approach

which

may

use

related

or

comparable

assets

or

liabilities,

recent

transactions,

market

multiples,

book

values,

and

other

relevant

information

for

the

investment

to

determine

the

fair

value

of

the

investment.

An

income-based

valuation

approach

may

also

be

used

in

which

the

anticipated

future

cash

flows

of

the

investment

are

discounted

to

calculate

fair

value.

Discounts

may

also

be

applied

due

to

the

nature

or

duration

of

any

restrictions

on

the

disposition

of

the

investments.

Due

to

the

inherent

uncertainty

of

valuations

of

such

investments,

the

fair

values

may

differ

significantly

from

the

values

that

would

have

been

used

had

an

active

market

existed.

Trading

in

securities

on

foreign

securities

stock

exchanges

and

OTC

markets

may

be

completed

before

4

p.m.

Eastern

time.

In

addition,

trading

in

certain

foreign

markets

may

not

take

place

on

every

Fund's

business

day. Events

can occur

between

the

time

at

which

trading

in

a

foreign

security

is

completed

and

4

p.m.

Eastern

time

that

might

call

into

question

the

reliability

of

the

value

of

a

portfolio

security

held

by

the

Fund.

As

a

result,

differences

may

arise

between

the

value

of

the

Fund's

portfolio

securities

as

determined

at

the

foreign

market

close

and

the

latest

indications

of

value

at

4

p.m.

Eastern

time. In

order

to

minimize

the

potential

for

these

differences,

an

independent

pricing

service

may

be

used

to

adjust

the

value

of

the

Fund's

portfolio

securities

to

the

latest

indications

of

fair

value

at

4

p.m.

Eastern

time.

At

June

30,

2022,

certain

securities

may

have

been

fair

valued

using

these

procedures,

in

which

case

the

securities

were

categorized

as

Level

2

inputs

within

the

fair

value

hierarchy

(referred

to

as

“market

level

fair

value”).

See

the

Fair

Value

Measurements

note

for

more

information.

When

the

last

day

of

the

reporting

period

is

a

non-business

day,

certain

foreign

markets

may

be

open

on

those

days

that

the

Fund's

NAV

is

not

calculated,

which

could

result

in

differences

between

the

value

of

the

Fund's

portfolio

securities

on

the

last

business

day

and

the

last

calendar

day

Templeton

Developing

Markets

Trust

Notes

to

Financial

Statements

(unaudited)

24

franklintempleton.com

Semiannual

Report

of

the

reporting

period.

Any

security

valuation

changes

due

to

an

open

foreign

market

are

adjusted

and

reflected

by

the

Fund

for

financial

reporting

purposes.

b.

Foreign

Currency

Translation 

Portfolio

securities

and

other

assets

and

liabilities

denominated

in

foreign

currencies

are

translated

into

U.S.

dollars

based

on

the

exchange

rate

of

such

currencies

against

U.S.

dollars

on

the

date

of

valuation.

The

Fund

may

enter

into

foreign

currency

exchange

contracts

to

facilitate

transactions

denominated

in

a

foreign

currency.

Purchases

and

sales

of

securities,

income

and

expense

items

denominated

in

foreign

currencies

are

translated

into

U.S.

dollars

at

the

exchange

rate

in

effect

on

the

transaction

date.

Portfolio

securities

and

assets

and

liabilities

denominated

in

foreign

currencies

contain

risks

that

those

currencies

will

decline

in

value

relative

to

the

U.S.

dollar.

Occasionally,

events

may

impact

the

availability

or

reliability

of

foreign

exchange

rates

used

to

convert

the

U.S.

dollar

equivalent

value.

If

such

an

event

occurs,

the

foreign

exchange

rate

will

be

valued

at

fair

value

using

procedures

established

and

approved

by

the

Board.

The

Fund

does

not

separately

report

the

effect

of

changes

in

foreign

exchange

rates

from

changes

in

market

prices

on

securities

held.

Such

changes

are

included

in

net

realized

and

unrealized

gain

or

loss

from

investments

in

the

Statement of

Operations.

Realized

foreign

exchange

gains

or

losses

arise

from

sales

of

foreign

currencies,

currency

gains

or

losses

realized

between

the

trade

and

settlement

dates

on

securities

transactions

and

the

difference

between

the

recorded

amounts

of

dividends,

interest,

and

foreign

withholding

taxes

and

the

U.S.

dollar

equivalent

of

the

amounts

actually

received

or

paid.

Net

unrealized

foreign

exchange

gains

and

losses

arise

from

changes

in

foreign

exchange

rates

on

foreign

denominated

assets

and

liabilities

other

than

investments

in

securities

held

at

the

end

of

the

reporting

period.

c.

Securities

Purchased

on

a

Delayed

Delivery

Basis

The

Fund

purchases

securities

on

a

delayed

delivery

basis,

with

payment

and

delivery

scheduled

for

a

future

date.

These

transactions

are

subject

to

market

fluctuations

and

are

subject

to

the

risk

that

the

value

at

delivery

may

be

more

or

less

than

the

trade

date

purchase

price.

Although

the

Fund

will

generally

purchase

these

securities

with

the

intention

of

holding

the

securities,

may

sell

the

securities

before

the

settlement

date.

d.

Securities

Lending

The

Fund

participates

in

an

agency

based

securities

lending

program

to

earn

additional

income.

The

Fund

receives

collateral

in

the

form

of

cash

and/or

U.S.

Government

and

Agency

securities

against

the

loaned

securities

in

an

amount

equal

to

at

least

102%

of

the

fair

value

of

the

loaned

securities.

Collateral

is

maintained

over

the

life

of

the

loan

in

an

amount

not

less

than

100%

of

the

fair

value

of

loaned

securities,

as

determined

at

the

close

of

Fund

business

each

day;

any

additional

collateral

required

due

to

changes

in

security

values

is

delivered

to

the

Fund

on

the

next

business

day.

Any

cash

collateral

received

is

deposited

into

a

joint

cash

account

with

other

funds

and

is

used

to

invest

in

a

money

market

fund

managed

by

Franklin

Advisers,

Inc.,

an

affiliate

of

the Fund.

Additionally,

at June

30,

2022, the

Fund

held $7,755,922

in

U.S.

Government

and

Agency

securities

as

collateral.

These

securities

are

held as

collateral

in

segregated

accounts

with

the

Fund’s

custodian.

The

Fund

cannot

repledge

or

resell

these

securities

held

as

collateral.

As

such,

the

non-cash

collateral

is

excluded

from

the

Statement

of

Assets

and

Liabilities.

The

Fund

may

receive

income

from

the

investment

of

cash

collateral,

in

addition

to

lending

fees

and

rebates

paid

by

the

borrower.

Income

from

securities

loaned,

net

of

fees

paid

to

the

securities

lending

agent

and/or

third-party

vendor,

is

reported

separately

in

the

Statement

of

Operations.

The

Fund

bears

the

market

risk

with

respect

to any

cash collateral

investment,

securities

loaned,

and

the

risk

that

the

agent

may

default

on

its

obligations

to

the

Fund.

If

the

borrower

defaults

on

its

obligation

to

return

the

securities

loaned,

the

Fund

has

the

right

to

repurchase

the

securities

in

the

open

market

using

the

collateral

received.

The

securities

lending

agent

has

agreed

to

indemnify

the

Fund

in

the

event

of

default

by

a

third

party

borrower.

1.

Organization

and

Significant

Accounting

Policies

(continued)

a.

Financial

Instrument

Valuation 

(continued)

Templeton

Developing

Markets

Trust

Notes

to

Financial

Statements

(unaudited)

25

franklintempleton.com

Semiannual

Report

e.

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.

The

Fund

may

recognize

an

income

tax

liability

related

to

its

uncertain

tax

positions

under

U.S.

GAAP

when

the

uncertain

tax

position

has

a

less

than

50%

probability

that

it

will

be

sustained

upon

examination

by

the

tax

authorities

based

on

its

technical

merits.

As

of

June

30,

2022,

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. 

f.

Security

Transactions,

Investment

Income,

Expenses

and

Distributions

Security

transactions

are

accounted

for

on

trade

date.

Realized

gains

and

losses

on

security

transactions

are

determined

on

a

specific

identification

basis.

Estimated

expenses

are

accrued

daily.

Dividend

income

is

recorded

on

the

ex-dividend

date

except

for

certain

dividends

from

securities

where

the

dividend

rate

is

not

available.

In

such

cases,

the

dividend

is

recorded

as

soon

as

the

information

is

received

by

the

Fund.

Distributions

to shareholders

are

recorded

on

the

ex-dividend

date.

Distributable

earnings

are

determined

according

to

income

tax

regulations

(tax

basis)

and

may

differ

from

earnings

recorded

in

accordance

with

U.S.

GAAP.

These

differences

may

be

permanent

or

temporary.

Permanent

differences

are

reclassified

among

capital

accounts

to

reflect

their

tax

character.

These

reclassifications

have

no

impact

on

net

assets

or

the

results

of

operations.

Temporary

differences

are

not

reclassified,

as

they

may

reverse

in

subsequent

periods.

Realized

and

unrealized

gains

and

losses

and

net

investment

income,

excluding

class

specific

expenses,

are

allocated

daily

to

each

class

of

shares

based

upon

the

relative

proportion

of

net

assets

of

each

class.

Differences

in

per

share

distributions

by

class

are

generally

due

to

differences

in

class

specific

expenses.

g.

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.

h.

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.

2.

Shares

of

Beneficial

Interest

At

June

30,

2022

,

there

were

an

unlimited

number

of

shares

authorized

(without

par

value).

Transactions

in

the

Fund’s

shares

were

as

follows:

1.

Organization

and

Significant

Accounting

Policies

(continued)

Templeton

Developing

Markets

Trust

Notes

to

Financial

Statements

(unaudited)

26

franklintempleton.com

Semiannual

Report

3.

Transactions

with

Affiliates

Franklin

Resources,

Inc.

is

the

holding

company

for

various

subsidiaries

that

together

are

referred

to

as

Franklin

Templeton.

Certain

officers

and

trustees

of

the

Fund

are

also

officers,

and/or

directors

of

the

following

subsidiaries:

Six

Months

Ended

June

30,

2022

Year

Ended

December

31,

2021

Shares

Amount

Shares

Amount

Class

A

Shares:

Shares

sold

a

...................................

1,350,851

$26,891,108

4,111,526

$108,241,392

Shares

issued

in

reinvestment

of

distributions

..........

—

—

2,565,665

56,812,922

Shares

redeemed

...............................

(3,116,078)

(61,239,591)

(8,483,464)

(219,105,940)

Net

increase

(decrease)

..........................

(1,765,227)

$(34,348,483)

(1,806,273)

$(54,051,626)

Class

C

Shares:

Shares

sold

...................................

69,814

$1,390,453

290,061

$7,535,946

Shares

issued

in

reinvestment

of

distributions

..........

—

—

77,457

1,680,656

Shares

redeemed

a

..............................

(254,048)

(4,899,982)

(907,340)

(22,940,491)

Net

increase

(decrease)

..........................

(184,234)

$(3,509,529)

(539,822)

$(13,723,889)

Class

R

Shares:

Shares

sold

...................................

199,214

$3,852,747

1,114,218

$28,566,513

Shares

issued

in

reinvestment

of

distributions

..........

—

—

112,345

2,434,863

Shares

redeemed

...............................

(262,934)

(5,108,635)

(338,531)

(8,497,934)

Net

increase

(decrease)

..........................

(63,720)

$(1,255,888)

888,032

$22,503,442

Class

R6

Shares:

Shares

sold

...................................

1,482,564

$28,658,346

2,751,462

$70,118,875

Shares

issued

in

reinvestment

of

distributions

..........

—

—

450,864

9,896,787

Shares

redeemed

...............................

(2,962,065)

(54,812,903)

(1,598,953)

(41,380,413)

Net

increase

(decrease)

..........................

(1,479,501)

$(26,154,557)

1,603,373

$38,635,249

Advisor

Class

Shares:

Shares

sold

...................................

947,326

$18,375,322

4,281,577

$110,413,441

Shares

issued

in

reinvestment

of

distributions

..........

—

—

643,526

14,152,944

Shares

redeemed

...............................

(1,274,293)

(24,528,689)

(4,674,674)

(119,226,674)

Net

increase

(decrease)

..........................

(326,967)

$(6,153,367)

250,429

$5,339,711

a

May

include

a

portion

of

Class

C

shares

that

were

automatically

converted

to

Class

A.

Subsidiary

Affiliation

Templeton

Asset

Management

Ltd.

(Asset

Management)

Investment

manager

Franklin

Templeton

Investment

Management

Limited

(FTIML)

Investment

manager

Franklin

Templeton

Services,

LLC

(FT

Services)

Administrative

manager

Franklin

Distributors,

LLC

(Distributors)

Principal

underwriter

Franklin

Templeton

Investor

Services,

LLC

(Investor

Services)

Transfer

agent

2.

Shares

of

Beneficial

Interest

(continued)

Templeton

Developing

Markets

Trust

Notes

to

Financial

Statements

(unaudited)

27

franklintempleton.com

Semiannual

Report

a.

Management

Fees

The

Fund

pays

an

investment

management

fee,

calculated

daily

and

paid

monthly,

to

Asset

Management

based

on

the

average

daily

net

assets

of

the

Fund

as

follows:

For

the

period

ended

June

30,

2022,

the

annualized

gross

effective

investment

management

fee

rate

was 1.039%

of

the

Fund’s

average daily

net

assets. 

Under

a

subadvisory

agreement,

FTIML,

an

affiliate

of

Asset

Management,

provides

subadvisory

services

to

the

Fund.

The

subadvisory

fee

is

paid

by

Asset

Management

based

on

Fund's

average

daily

net

assets,

and

is

not

an

additional

expense

of

the

Fund.

b.

Administrative

Fees

Under

an

agreement

with

Asset

Management,

FT

Services

provides

administrative

services

to

the

Fund.

The

fee

is

paid

by

Asset

Management

based

on

the

Fund's

average

daily

net

assets,

and

is

not

an

additional

expense

of

the

Fund.

c.

Distribution

Fees

The

Board

has

adopted

distribution

plans

for

each

share

class,

with

the

exception

of

Class

R6

and

Advisor

Class

shares,

pursuant

to

Rule

12b-1

under

the

1940

Act.

Under

the

Fund’s

Class A reimbursement

distribution

plan,

the

Fund

reimburses

Distributors

for

costs

incurred

in

connection

with

the

servicing,

sale

and

distribution

of

the

Fund's

shares

up

to

the

maximum

annual

plan

rate.

Under

the

Class

A

reimbursement

distribution

plan,

costs

exceeding

the

maximum

for

the

current

plan

year

cannot

be

reimbursed

in

subsequent

periods.

In

addition,

under

the

Fund’s

Class C

and

R

compensation

distribution

plans,

the

Fund

pays

Distributors

for

costs

incurred

in

connection

with

the

servicing,

sale

and

distribution

of

the

Fund's

shares

up

to

the

maximum

annual

plan

rate

for

each

class.

The

plan

year,

for

purposes

of

monitoring

compliance

with

the

maximum

annual

plan

rates,

is

February

1

through

January

31.

The

maximum

annual

plan

rates,

based

on

the

average

daily

net

assets,

for

each

class,

are

as

follows:

The

Board

has

set

the

current

rate

at

0.25%

per

year

for

Class

A

shares

until

further

notice

and

approval

by

the

Board.

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

Class

A

....................................................................................

0.35%

Class

C

....................................................................................

1.00%

Class

R

....................................................................................

0.50%

3.

Transactions

with

Affiliates

(continued)

Templeton

Developing

Markets

Trust

Notes

to

Financial

Statements

(unaudited)

28

franklintempleton.com

Semiannual

Report

d.

Sales

Charges/Underwriting

Agreements

Front-end

sales

charges

and

contingent

deferred

sales

charges

(CDSC)

do

not

represent

expenses

of

the

Fund.

These

charges

are

deducted

from

the

proceeds

of

sales

of

Fund

shares

prior

to

investment

or

from

redemption

proceeds

prior

to

remittance,

as

applicable.

Distributors

has

advised

the

Fund

of

the

following

commission

transactions

related

to

the

sales

and

redemptions

of

the

Fund's

shares

for

the

period:

e.

Transfer

Agent

Fees

Each

class

of

shares pays

transfer

agent

fees

to

Investor

Services

for

its

performance

of

shareholder

servicing

obligations.

The

fees

are

based

on

an

annualized

asset

based

fee

of

0.02%

plus

a

transaction

based

fee.

In

addition,

each

class reimburses

Investor

Services

for

out

of

pocket

expenses

incurred

and,

except

for

Class

R6, reimburses

shareholder

servicing

fees

paid

to

third

parties.

These

fees

are

allocated

daily

based

upon

their

relative

proportion

of

such

classes'

aggregate

net

assets.

Class

R6

pays

Investor

Services

transfer

agent

fees

specific

to

that

class.

For

the

period

ended

June

30,

2022,

the

Fund

paid

transfer

agent

fees

of

$1,218,826, of

which

$638,062

was

retained

by

Investor

Services.

f.

Investments

in

Affiliated

Management

Investment

Companies

The

Fund

invests

in

one

or

more

affiliated

management

investment

companies.

As

defined

in

the

1940

Act,

an

investment

is

deemed

to

be

a

“Controlled

Affiliate”

of

a

fund

when

a

fund

owns,

either

directly

or

indirectly,

25%

or

more

of

the

affiliated

fund’s

outstanding

shares

or

has

the

power

to

exercise

control

over

management

or

policies

of

such

fund.

The

Fund

does

not

invest

for

purposes

of

exercising

a

controlling

influence

over

the

management

or

policies.

Management

fees

paid

by

the

Fund

are

waived

on

assets

invested

in

the

affiliated

management

investment

companies,

as

noted

in

the

Statement

of

Operations,

in

an

amount

not

to

exceed

the

management

and

administrative

fees

paid

directly

or

indirectly

by

each

affiliate.

During

the

period

ended

June

30,

2022,

the

Fund

held

investments

in

affiliated

management

investment

companies

as

follows:

Sales

charges

retained

net

of

commissions

paid

to

unaffiliated

brokers/dealers

..............................

$17,336

CDSC

retained

..............................................................................

$5,482

    aa

Value

at

Beginning

of

Period

Purchases

Sales

Realized

Gain

(Loss)

Net

Change

in

Unrealized

Appreciation

(Depreciation)

Value

at

End

of

Period

Number

of

Shares

Held

at

End

of

Period

Investment

Income

a      

a  

a  

a  

a  

a  

a  

a  

Templeton

Developing

Markets

Trust

Non-Controlled

Affiliates

Dividends

Institutional

Fiduciary

Trust

-

Money

Market

Portfolio,

0.895%

$

5,912,137

$

114,703,813

$

(102,089,800)

$

—

$

—

$

18,526,150

18,526,150

$

8,408

Non-Controlled

Affiliates

Income

from

securities

loaned

Institutional

Fiduciary

Trust

-

Money

Market

Portfolio,

0.895%

$—

$8,983,873

$(8,983,873)

$—

$—

$—

—

$45

Total

Affiliated

Securities

...

$5,912,137

$123,687,686

$(111,073,673)

$—

$—

$18,526,150

$8,453

3.

Transactions

with

Affiliates

(continued)

Templeton

Developing

Markets

Trust

Notes

to

Financial

Statements

(unaudited)

29

franklintempleton.com

Semiannual

Report

g.

Waiver

and

Expense

Reimbursements

Asset

Management

has

contractually

agreed

in

advance

to

waive

or

limit

its

fees

and

to

assume

as

its

own

expense

certain

expenses

otherwise

payable

by

the

Fund

so

that

the

operating

expenses

(excluding

distribution

fees,

acquired

fund

fees

and

expenses,

and

certain

non-routine

expenses

or

costs,

including

those

relating

to

litigation,

indemnification,

reorganizations,

and

liquidations)

for

each

class

of

the

Fund

do

not

exceed

1.13%,

and

for

Class

R6

do

not

exceed

1.00%,

based

on

the

average

net

assets

of

each

class

until

April

30,

2023.

Total

expenses

waived

or

paid

are

not

subject

to

recapture

subsequent

to

the

Fund's

fiscal

year

end.

Investor

Services

has

contractually

agreed

in

advance

to

waive

or

limit

its

fees

so

that

the

Class

R6

transfer

agent

fees

do

not

exceed

0.03%

based

on

the

average

net

assets

of

the

class

until

April

30,

2023.

4.

Income

Taxes

For

tax

purposes,

capital

losses

may

be

carried

over

to

offset

future

capital

gains.

At

December

31,

2021,

the

capital

loss

carryforwards

were

as

follows:

At

June

30,

2022,

the

cost

of

investments

and

net

unrealized

appreciation

(depreciation)

for

income

tax

purposes

were

as

follows:

Differences

between

income

and/or

capital

gains

as

determined

on

a

book

basis

and

a

tax

basis

are

primarily

due

to

differing

treatments

of

foreign

currency

transactions,

passive

foreign

investment

company

shares,

foreign

capital

gains

tax,

corporate

actions

and

wash

sales.

5.

Investment

Transactions

Purchases

and

sales

of

investments

(excluding

short

term

securities)

for

the

period

ended

June

30,

2022,

aggregated

$116,514,084

and

$192,211,348,

respectively.

Capital

loss

carryforwards

not

subject

to

expiration:

Short

term

................................................................................

$5,852,689

Long

term

................................................................................

28,274,829

Total

capital

loss

carryforwards

...............................................................

$34,127,518

a

a

Includes

$34,127,518

from

the

acquired

Templeton

BRIC

Fund,

which

may

be

carried

over

to

offset

future

capital

gains,

subject

to

certain

limitations

.

Cost

of

investments

..........................................................................

$1,000,975,211

Unrealized

appreciation

........................................................................

$332,078,546

Unrealized

depreciation

........................................................................

(254,228,344)

Net

unrealized

appreciation

(depreciation)

..........................................................

$77,850,202

3.

Transactions

with

Affiliates

(continued)

Templeton

Developing

Markets

Trust

Notes

to

Financial

Statements

(unaudited)

30

franklintempleton.com

Semiannual

Report

6.

Concentration

of

Risk

Investing

in

foreign

securities

may

include

certain

risks

and

considerations

not

typically

associated

with

investing

in

U.S.

securities,

such

as

fluctuating

currency

values

and

changing

local,

regional

and

global

economic,

political

and

social

conditions,

which

may

result

in

greater

market

volatility.

Political

and

financial

uncertainty

in

many

foreign

regions

may

increase

market

volatility

and

the

economic

risk

of

investing

in

foreign

securities.

In

addition,

certain

foreign

securities

may

not

be

as

liquid

as

U.S.

securities.

Investing

in

China

A

shares

may

include

certain

risks

and

considerations

not

typically

associated

with

investing

in

U.S.

securities.

In

general,

A

shares

are

issued

by

companies

incorporated

in

the

People’s

Republic

of

China

(PRC)

and

listed

on

the

Shanghai

and

Shenzhen

Stock

Exchanges

and

available

for

investment

by

domestic

(Chinese)

investors

and

holders

of

a

Qualified

Foreign

Institutional

Investor

(QFII)

license

and,

in

the

case

of

certain

eligible

A

shares,

through

the

Shanghai

and

Shenzhen

Stock

Connect

programs.

The

Shanghai

and

Shenzhen

Stock

Exchanges

are,

however,

substantially

smaller,

less

liquid

and

more

volatile

than

the

major

securities

markets

in

the

United

States.

Russia’s

military

invasion

of

Ukraine

in

February

2022,

the

resulting

responses

by

the

United

States

and

other

countries,

and

the

potential

for

wider

conflict

could

increase

volatility

and

uncertainty

in

the

financial

markets

and

adversely

affect

regional

and

global

economies.

The

United

States

and

other

countries

have

imposed

broad-ranging

economic

sanctions

on

Russia

and

certain

Russian

individuals,

banking

entities

and

corporations

as

a

response

to

its

invasion

of

Ukraine.

The

United

States

and

other

countries

have

also

imposed

economic

sanctions

on

Belarus

and

may

impose

sanctions

on

other

countries

that

support

Russia’s

military

invasion.

These

sanctions,

as

well

as

any

other

economic

consequences

related

to

the

invasion,

such

as

additional

sanctions,

boycotts

or

changes

in

consumer

or

purchaser

preferences

or

cyberattacks

on

governments,

companies

or

individuals,

may

further

decrease

the

value

and

liquidity

of

certain

Russian

securities

and

securities

of

issuers

in

other

countries

that

are

subject

to

economic

sanctions

related

to

the

invasion.

To

the

extent

that

the

Fund

has

exposure

to

Russian

investments

or

investments

in

countries

affected

by

the

invasion,

the

Fund’s

ability

to

price,

buy,

sell,

receive

or

deliver

such

investments

was

impaired.

The

Fund

could

determine

at

any

time

that

certain

of

the

most

affected

securities

have

little

or

no

value.

In

addition,

any

exposure

that

the

Fund

may

have

to

counterparties

in

Russia

or

in

countries

affected

by

the

invasion

could

negatively

impact

the

Fund’s

portfolio.

The

extent

and

duration

of

Russia’s

military

actions

and

the

repercussions

of

such

actions

(including

any

retaliatory

actions

or

countermeasures

that

may

be

taken

by

those

subject

to

sanctions)

are

impossible

to

predict,

but

could

result

in

significant

market

disruptions,

including

in

the

oil

and

natural

gas

markets,

and

may

negatively

affect

global

supply

chains,

inflation

and

global

growth.

These

and

any

related

events

could

significantly

impact

the

Fund’s

performance

and

the

value

of

an

investment

in

the

Fund,

even

beyond

any

direct

exposure

the

Fund

may

have

to

Russian

issuers

or

issuers

in

other

countries

affected

by

the

invasion.

The

Valuation

Committee

determined

that

based

on

their

analysis

of

the

market

and

access

to

market

participants,

the

Russian

equity

securities

held

by

the

Fund

had

little

or

no

value

at

June

30,

2022.

7.

Novel

Coronavirus

Pandemic 

The

global

outbreak

of

the

novel

coronavirus

disease,

known

as

COVID-19, has

caused

adverse

effects

on

many

companies,

sectors,

nations,

regions

and

the

markets

in

general, and

may

continue for

an unpredictable duration.

The

effects

of

this

pandemic

may

materially

impact

the

value

and

performance

of

the Fund, its ability

to

buy

and

sell

fund

investments

at

appropriate

valuations

and its ability

to

achieve its investment

objectives.

8.

Credit

Facility

The

Fund,

together

with

other

U.S.

registered

and

foreign

investment

funds

(collectively,

Borrowers),

managed

by

Franklin

Templeton,

are

borrowers

in

a

joint

syndicated

senior

unsecured

credit

facility

totaling

$2.675

billion

(Global

Credit

Facility)

which

matures

on

February

3,

2023.

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.

Templeton

Developing

Markets

Trust

Notes

to

Financial

Statements

(unaudited)

31

franklintempleton.com

Semiannual

Report

Under

the

terms

of

the

Global

Credit

Facility,

the

Fund

shall,

in

addition

to

interest

charged

on

any

borrowings

made

by

the

Fund

and

other

costs

incurred

by

the

Fund,

pay

its

share

of

fees

and

expenses

incurred

in

connection

with

the

implementation

and

maintenance

of

the

Global

Credit

Facility,

based

upon

its

relative

share

of

the

aggregate

net

assets

of

all

of

the

Borrowers,

including

an

annual

commitment

fee

of

0.15%

based

upon

the

unused

portion

of

the

Global

Credit

Facility.

These

fees

are

reflected

in

other

expenses

in

the

Statement

of

Operations.

During

the

period

ended

June

30,

2022,

the Fund

did

not

use

the

Global

Credit

Facility.

9.

Fair

Value

Measurements

The

Fund

follows

a

fair

value

hierarchy

that

distinguishes

between

market

data

obtained

from

independent

sources

(observable

inputs)

and

the Fund's

own

market

assumptions

(unobservable

inputs).

These

inputs

are

used

in

determining

the

value

of

the

Fund's financial

instruments

and

are

summarized

in

the

following

fair

value

hierarchy:

Level

1

–

quoted

prices

in

active

markets

for

identical

financial

instruments

Level

2

–

other

significant

observable

inputs

(including

quoted

prices

for

similar

financial

instruments,

interest

rates,

prepayment

speed,

credit

risk,

etc.)

Level

3

–

significant

unobservable

inputs

(including

the

Fund's

own

assumptions

in

determining

the

fair

value

of

financial

instruments)

The

input

levels

are

not

necessarily

an

indication

of

the

risk

or

liquidity

associated

with

financial

instruments

at

that

level.

A

summary

of

inputs

used

as

of

June

30,

2022,

in

valuing

the

Fund's

assets

carried

at

fair

value,

is

as

follows:

Level

1

Level

2

Level

3

Total

Templeton

Developing

Markets

Trust

Assets:

Investments

in

Securities:

Common

Stocks

:

Brazil

................................

$

28,317,496

$

—

$

—

$

28,317,496

Cambodia

............................

—

4,311,860

—

4,311,860

China

...............................

31,077,476

288,850,953

12,469,601

332,398,030

Egypt

................................

—

51,853

—

51,853

Hong

Kong

...........................

—

13,539,210

—

13,539,210

Hungary

.............................

—

7,900,408

—

7,900,408

India

................................

—

101,432,697

—

101,432,697

Indonesia

............................

—

8,386,762

—

8,386,762

Mexico

..............................

20,546,953

—

—

20,546,953

Pakistan

.............................

—

1,567,102

—

1,567,102

Peru

................................

4,441,109

—

—

4,441,109

Philippines

............................

—

2,837,995

—

2,837,995

Russia

...............................

—

—

—

a

—

South

Africa

...........................

—

10,837,362

—

10,837,362

South

Korea

..........................

—

222,549,997

—

222,549,997

Taiwan

...............................

—

163,430,391

—

163,430,391

Thailand

.............................

—

21,964,191

—

21,964,191

United

Kingdom

........................

—

15,727,415

—

15,727,415

United

States

..........................

38,655,297

—

—

38,655,297

Preferred

Stocks

........................

61,403,135

—

—

61,403,135

Escrows

and

Litigation

Trusts

...............

—

—

—

a

—

Short

Term

Investments

...................

18,526,150

—

—

18,526,150

Total

Investments

in

Securities

...........

$202,967,616

$863,388,196

b

$12,469,601

$1,078,825,413

8.

Credit

Facility

(continued)

Templeton

Developing

Markets

Trust

Notes

to

Financial

Statements

(unaudited)

32

franklintempleton.com

Semiannual

Report

A

reconciliation

in

which

Level

3

inputs

are

used

in

determining

fair

value

is

presented

when

there

are

significant

Level

3

assets

and/or

liabilities

at

the

beginning

and/or

end

of

the period.

At

June

30,

2022,

the

reconciliation is

as follows:

Significant

unobservable

valuation

inputs

for

material

Level

3 assets

and/or

liabilities and

impact

to

fair

value

as

a

result

of

changes

in

unobservable

valuation

inputs

as

of

June

30,

2022,

are

as

follows:

a

Includes

securities

determined

to

have

no

value

at

June

30,

2022.

b

Includes

foreign

securities

valued

at

$863,388,196,

which

were

categorized

as

Level

2

as

a

result

of

the

application

of

market

level

fair

value

procedures.

See

the

Financial

Instrument

Valuation

note

for

more

information.

Balance

at

Beginning

of

Period

Purchases

a

Sales

Transfer

Into

Level

3

b

Transfer

Out

of

Level

3

Net

Accretion

(Amortiza-

tion)

Net

Realized

Gain

(Loss)

Net

Unr

ealized

Appreciation

(Depreciation)

Balance

at

End

of

Period

Net

Change

in

Unrealized

Appreciation

(Depreciation)

on

Assets

Held

at

Period

End

a

a

a

a

a

a

a

a

a

a

a

Templeton

Developing

Markets

Trust

Assets:

Investments

in

Securities:

Common

Stocks

:

China

......

$

13,507,904

$

—

$

—

$

—

$

—

$

—

$

—

$

(1,038,303)

$

12,469,601

$

(1,038,303)

Russia

......

—

14,188,973

—

64,431,846

—

—

—

(78,620,819)

—

c

(78,620,819)

Escrows

and

Litigation

Trusts

—

c

—

—

—

—

—

—

—

—

c

—

Total

Investments

in

Securities

.......

$13,507,904

$14,188,973

$—

$64,431,846

$—

$—

$—

$(79,659,122)

$12,469,601

$(79,659,122)

a

Purchases

include

all

purchases

of

securities

and

securities

received

in

corporate

actions.

b

Transferred

into

level

3

as

a

result

of

the

unavailability

of

a

quoted

market

price

in

an

active

market

for

identical

securities

and

other

significant

observable

valuation

inputs.

May

include

amounts

related

to

a

corporate

action.

c

Includes

securities

determined

to

have

no

value.

Description

Fair

Value

at

End

of

Period

Valuation

Technique

Unobservable

Inputs

Amount

Impact

to

Fair

Value

if

Input

Increases

a

Assets:

Investments

in

Securities:

Common

Stocks:

China

.....................

$12,469,601

Discount

to

last

traded

price

Discount

0.0%

Decrease

Index

movement

-12.4%

Increase

b

All

Other

Investments

..........

—

c

Total

.......................

$12,469,601

a

Represents

the

directional

change

in

the

fair

value

that

would

result

from

a

significant

and

reasonable

increase

in

the

corresponding

input.

A

significant

and

reasonable

decrease

in

the

input

would

have

the

opposite

effect.

Significant

impacts,

if

any,

to

fair

value

and/or

net

assets

have

been

indicated.

b

Represents

a

significant

impact

to

fair

value

but

not

net

assets.

c

Includes

securities

determined

to

have

no

value

at

June

30,2022.

9.

Fair

Value

Measurements

(continued)

Templeton

Developing

Markets

Trust

Notes

to

Financial

Statements

(unaudited)

33

franklintempleton.com

Semiannual

Report

10.

New

Accounting

Pronouncements

In June

2022,

the

Financial

Accounting

Standards

Board

(FASB)

issued

Accounting

Standards

Update

(ASU)

No.

2022-03,

Fair

Value

Measurement

(Topic

820)

–

Fair

Value

Measurement

of

Equity

Securities

Subject

to

Contractual

Sale

Restrictions.

The

amendments

in

the

ASU

clarify

that

a

contractual

restriction

on

the

sale

of

an

equity

security

is

not

considered

part

of

the

unit

of

account

of

the

equity

security

and,

therefore,

should

not

be

considered

in

measuring

fair

value.

The

ASU

is

effective

for

interim

and

annual

reporting

periods

beginning

after

December

15,

2023,

with

the

option

of

early

adoption.

Management

is

currently

evaluating

the

impact,

if

any,

of

applying

this

ASU.

11.

Subsequent

Events

The

Fund

has

evaluated

subsequent

events

through

the

issuance

of

the financial

statements

and

determined

that

no

events

have

occurred

that

require

disclosure.

Abbreviations

Selected

Portfolio

ADR

American

Depositary

Receipt

GDR

Global

Depositary

Receipt

Templeton

Developing

Markets

Trust

Shareholder

Information

34

franklintempleton.com

Semiannual

Report

Board

Approval

of

Investment

Management

Agreements

TEMPLETON

DEVELOPING

MARKETS

TRUST

(Fund)

At

an

in-person

meeting

held

on

February

28,

2022

(Meeting),

the

Board

of

Trustees

(Board)

of

the

Fund,

including

a

majority

of

the

trustees

who

are

not

“interested

persons”

as

defined

in

the

Investment

Company

Act

of

1940

(Independent

Trustees),

reviewed

and

approved

the

continuance

of

the

investment

management

agreement

between

Templeton

Asset

Management

Ltd.

(TAML)

and

the

Fund,

and

an

investment

sub-advisory

agreement

between

TAML

and

Franklin

Templeton

Investment

Management

Limited

(Sub-Adviser),

an

affiliate

of

TAML,

on

behalf

of

the

Fund,

for

an

additional

one-year

period

(each

a

Management

Agreement).

The

Independent

Trustees

received

advice

from

and

met

separately

with

Independent

Trustee

counsel

in

considering

whether

to

approve

the

continuation

of

each

Management

Agreement.

TAML

and

the

Sub-Adviser

are

each

referred

to

herein

as

a

Manager.

In

considering

the

continuation

of

each

Management

Agreement,

the

Board

reviewed

and

considered

information

provided

by

each

Manager

at

the

Meeting

and

throughout

the

year

at

meetings

of

the

Board

and

its

committees.

The

Board

also

reviewed

and

considered

information

provided

in

response

to

a

detailed

set

of

requests

for

information

submitted

to

each

Manager

by

Independent

Trustee

counsel

on

behalf

of

the

Independent

Trustees

in

connection

with

the

annual

contract

renewal

process.

In

addition,

prior

to

the

Meeting,

the

Independent

Trustees

held

a

virtual

contract

renewal

meeting

at

which

the

Independent

Trustees

first

conferred

amongst

themselves

and

Independent

Trustee

counsel

about

contract

renewal

matters;

and

then

met

with

management

to

request

additional

information

that

the

Independent

Trustees

reviewed

and

considered

at

the

Meeting.

The

Board

reviewed

and

considered

all

of

the

factors

it

deemed

relevant

in

approving

the

continuance

of

each

Management

Agreement,

including,

but

not

limited

to:

(i)

the

nature,

extent

and

quality

of

the

services

provided

by

each

Manager;

(ii)

the

investment

performance

of

the

Fund;

(iii)

the

costs

of

the

services

provided

and

profits

realized

by

each

Manager

and

its

affiliates

from

the

relationship

with

the

Fund;

(iv)

the

extent

to

which

economies

of

scale

are

realized

as

the

Fund

grows;

and

(v)

whether

fee

levels

reflect

these

economies

of

scale

for

the

benefit

of

Fund

investors.

In

approving

the

continuance

of

each

Management

Agreement,

the

Board,

including

a

majority

of

the

Independent

Trustees,

determined

that

the

terms

of

the

Management

Agreement

are

fair

and

reasonable

and

that

the

continuance

of

such

Management

Agreement

is

in

the

best

interests

of

the

Fund

and

its

shareholders.

While

attention

was

given

to

all

information

furnished,

the

following

discusses

some

primary

factors

relevant

to

the

Board’s

determination.

Nature,

Extent

and

Quality

of

Services

The

Board

reviewed

and

considered

information

regarding

the

nature,

extent

and

quality

of

investment

management

services

provided

by

each

Manager

and

its

affiliates

to

the

Fund

and

its

shareholders.

This

information

included,

among

other

things,

the

qualifications,

background

and

experience

of

the

senior

management

and

investment

personnel

of

each

Manager,

as

well

as

information

on

succession

planning

where

appropriate;

the

structure

of

investment

personnel

compensation;

oversight

of

third-

party

service

providers;

investment

performance

reports

and

related

financial

information

for

the

Fund;

reports

on

expenses

and

shareholder

services;

legal

and

compliance

matters;

risk

controls;

pricing

and

other

services

provided

by

each

Manager

and

its

affiliates;

and

management

fees

charged

by

each

Manager

and

its

affiliates

to

US

funds

and

other

accounts,

including

management’s

explanation

of

differences

among

accounts

where

relevant.

The

Board

also

reviewed

and

considered

an

annual

report

on

payments

made

by

Franklin

Templeton

(FT)

or

the

Fund

to

financial

intermediaries,

as

well

as

a

memorandum

relating

to

third-

party

servicing

arrangements,

which

included

discussion

of

the

changing

distribution

landscape

for

the

Fund.

The

Board

acknowledged

the

ongoing

integration

of

the

Legg

Mason

family

of

funds

into

the

FT

family

of

funds

and

developing

strategies

to

address

areas

of

heightened

concern

in

the

mutual

fund

industry,

including

various

regulatory

initiatives

and

recent

geopolitical

concerns.

The

Board

also

reviewed

and

considered

the

benefits

provided

to

Fund

shareholders

of

investing

in

a

fund

that

is

part

of

the

FT

family

of

funds.

The

Board

noted

the

financial

position

of

Franklin

Resources,

Inc.

(FRI),

the

Managers’

parent,

and

its

commitment

to

the

mutual

fund

business

as

evidenced

by

its

reassessment

of

the

fund

offerings

in

response

to

the

market

environment

and

project

initiatives

and

capital

investments

relating

to

the

services

provided

to

the

Fund

by

the

FT

organization.

The

Board

Templeton

Developing

Markets

Trust

Shareholder

Information

35

franklintempleton.com

Semiannual

Report

specifically

noted

FT’s

commitment

to

being

a

global

leader

in

stewardship

and

sustainability

and

the

recent

addition

of

a

senior

executive

focused

on

environmental,

social

and

governance

and

climate

control

initiatives.

Following

consideration

of

such

information,

the

Board

was

satisfied

with

the

nature,

extent

and

quality

of

services

provided

by

each

Manager

and

its

affiliates

to

the

Fund

and

its

shareholders.

Fund

Performance

The

Board

reviewed

and

considered

the

performance

results

of

the

Fund

over

various

time

periods

ended

November

30,

2021.

The

Board

considered

the

performance

returns

for

the

Fund

in

comparison

to

the

performance

returns

of

mutual

funds

deemed

comparable

to

the

Fund

included

in

a

universe

(Performance

Universe)

selected

by

Broadridge

Financial

Solutions,

Inc.

(Broadridge),

an

independent

provider

of

investment

company

data.

The

Board

received

a

description

of

the

methodology

used

by

Broadridge

to

select

the

mutual

funds

included

in

a

Performance

Universe.

The

Board

also

reviewed

and

considered

Fund

performance

reports

provided

and

discussions

that

occurred

with

portfolio

managers

at

Board

meetings

throughout

the

year.

A

summary

of

the

Fund’s

performance

results

is

below.

The

Performance

Universe

for

the

Fund

included

the

Fund

and

all

retail

and

institutional

emerging

markets

funds.

The

Board

noted

that

the

Fund’s

annualized

total

return

for

the

one-

and

10-year

periods

was

below

the

median

of

its

Performance

Universe,

but

for

the

three-

and

five-year

periods

was

above

the

median

of

its

Performance

Universe

and

exceeded

10%.

The

Board

concluded

that

the

Fund’s

performance

was

acceptable.

Comparative

Fees

and

Expenses

The

Board

reviewed

and

considered

information

regarding

the

Fund’s

actual

total

expense

ratio

and

its

various

components,

including,

as

applicable,

management

fees;

transfer

agent

expenses;

underlying

fund

expenses;

Rule

12b-1

and

non-Rule

12b-1

service

fees;

and

other

non-

management

fees.

The

Board

also

noted

the

quarterly

and

annual

reports

it

receives

on

all

marketing

support

payments

made

by

FT

to

financial

intermediaries.

The

Board

considered

the

actual

total

expense

ratio

and,

separately,

the

contractual

management

fee

rate,

without

the

effect

of

fee

waivers,

if

any

(Management

Rate)

of

the

Fund

in

comparison

to

the

median

expense

ratio

and

median

Management

Rate,

respectively,

of

other

mutual

funds

deemed

comparable

to

and

with

a

similar

expense

structure

to

the

Fund

selected

by

Broadridge

(Expense

Group).

Broadridge

fee

and

expense

data

is

based

upon

information

taken

from

each

fund’s

most

recent

annual

or

semi-annual

report,

which

reflects

historical

asset

levels

that

may

be

quite

different

from

those

currently

existing,

particularly

in

a

period

of

market

volatility.

While

recognizing

such

inherent

limitation

and

the

fact

that

expense

ratios

and

Management

Rates

generally

increase

as

assets

decline

and

decrease

as

assets

grow,

the

Board

believed

the

independent

analysis

conducted

by

Broadridge

to

be

an

appropriate

measure

of

comparative

fees

and

expenses.

The

Broadridge

Management

Rate

includes

administrative

charges,

and

the

actual

total

expense

ratio,

for

comparative

consistency,

was

shown

for

Class

A

shares

for

the

Fund

and

for

each

other

fund

in

the

Expense

Group.

The

Board

received

a

description

of

the

methodology

used

by

Broadridge

to

select

the

mutual

funds

included

in

an

Expense

Group.

The

Expense

Group

for

the

Fund

included

the

Fund

and

17

other

emerging

markets

funds.

The

Board

noted

that

the

Management

Rate

for

the

Fund

was

slightly

above

the

median

of

its

Expense

Group.

The

Board

also

noted

that

the

actual

total

expense

ratio

for

the

Fund

was

below

the

median

and

in

the

second

quintile

of

its

Expense

Group.

The

Board

further

noted

that

the

Fund’s

actual

total

expense

ratio

reflected

a

fee

waiver

from

management.

The

Board

also

noted

that

the

Fund’s

Sub-Adviser

is

paid

by

TAML

out

of

the

management

fee

TAML

receives

from

the

Fund

and

that

the

allocation

of

the

fee

between

TAML

and

the

Sub-Adviser

reflected

the

services

provided

by

each

to

the

Fund.

The

Board

concluded

that

the

Management

Rate

charged

to

the

Fund

and

the

sub-advisory

fee

paid

to

the

Sub-Adviser

are

reasonable.

Profitability

The

Board

reviewed

and

considered

information

regarding

the

profits

realized

by

TAML

and

its

affiliates

in

connection

with

the

operation

of

the

Fund.

In

this

respect,

the

Board

considered

the

Fund

profitability

analysis

provided

that

addresses

the

overall

profitability

of

FT’s

US

fund

business,

as

well

as

its

profits

in

providing

investment

management

and

other

services

to

each

of

the

individual

funds

during

the

12-month

period

ended

September

30,

2021,

being

the

most

recent

fiscal

year-end

for

FRI.

The

Board

noted

that

although

management

continually

makes

refinements

to

its

methodologies

used

in

calculating

profitability

in

response

to

organizational

and

product-related

changes,

the

overall

methodology

has

remained

consistent

with

that

used

in

the

Fund’s

profitability

report

presentations

from

prior

years.

The

Board

also

noted

that

PricewaterhouseCoopers

LLP,

auditor

to

FRI

and

certain

FT

funds,

has

been

engaged

to

periodically

review

and

assess

the

allocation

methodologies

to

be

used

solely

by

the

Fund’s

Board

with

respect

to

the

profitability

analysis.

Templeton

Developing

Markets

Trust

Shareholder

Information

36

franklintempleton.com

Semiannual

Report

The

Board

noted

management’s

belief

that

costs

incurred

in

establishing

the

infrastructure

necessary

for

the

type

of

mutual

fund

operations

conducted

by

each

Manager

and

its

affiliates

may

not

be

fully

reflected

in

the

expenses

allocated

to

the

Fund

in

determining

its

profitability,

as

well

as

the

fact

that

the

level

of

profits,

to

a

certain

extent,

reflected

operational

cost

savings

and

efficiencies

initiated

by

management.

As

part

of

this

evaluation,

the

Board

considered

management’s

outsourcing

of

certain

operations,

which

effort

has

required

considerable

up-front

expenditures

by

each

Manager

but,

over

the

long

run

is

expected

to

result

in

greater

efficiencies.

The

Board

also

noted

management’s

expenditures

in

improving

shareholder

services

provided

to

the

Fund,

as

well

as

the

need

to

implement

systems

and

meet

additional

regulatory

and

compliance

requirements

resulting

from

recent

US

Securities

and

Exchange

Commission

and

other

regulatory

requirements.

The

Board

also

considered

the

extent

to

which

each

Manager

and

its

affiliates

might

derive

ancillary

benefits

from

fund

operations,

including

revenues

generated

from

transfer

agent

services,

potential

benefits

resulting

from

personnel

and

systems

enhancements

necessitated

by

fund

growth,

as

well

as

increased

leverage

with

service

providers

and

counterparties.

Based

upon

its

consideration

of

all

these

factors,

the

Board

concluded

that

the

level

of

profits

realized

by

each

Manager

and

its

affiliates

from

providing

services

to

the

Fund

was

not

excessive

in

view

of

the

nature,

extent

and

quality

of

services

provided

to

the

Fund.

Economies

of

Scale

The

Board

reviewed

and

considered

the

extent

to

which

each

Manager

may

realize

economies

of

scale,

if

any,

as

the

Fund

grows

larger

and

whether

the

Fund’s

management

fee

structure

reflects

any

economies

of

scale

for

the

benefit

of

shareholders.

With

respect

to

possible

economies

of

scale,

the

Board

noted

the

existence

of

management

fee

breakpoints,

which

operate

generally

to

share

any

economies

of

scale

with

the

Fund’s

shareholders

by

reducing

the

Fund’s

effective

management

fees

as

the

Fund

grows

in

size.

The

Board

considered

the

Managers’

view

that

any

analyses

of

potential

economies

of

scale

in

managing

a

particular

fund

are

inherently

limited

in

light

of

the

joint

and

common

costs

and

investments

each

Manager

incurs

across

the

FT

family

of

funds

as

a

whole.

The

Board

concluded

that,

to

the

extent

economies

of

scale

may

be

realized

by

each

Manager

and

its

affiliates,

the

Fund’s

management

fee

structure

provided

a

sharing

of

benefits

with

the

Fund

and

its

shareholders

as

the

Fund

grows.

Conclusion

Based

on

its

review,

consideration

and

evaluation

of

all

factors

it

believed

relevant,

including

the

above-described

factors

and

conclusions,

the

Board

unanimously

approved

the

continuation

of

each

Management

Agreement

for

an

additional

one-year

period.

Liquidity

Risk

Management

Program

Each

Fund

has

adopted

and

implemented

a

written

Liquidity

Risk

Management

Program

(the

“LRMP”)

as

required

by

Rule

22e-4

under

the

Investment

Company

Act

of

1940

(the

“Liquidity

Rule”).

The

LRMP

is

designed

to

assess

and

manage

each

Fund’s

liquidity

risk,

which

is

defined

as

the

risk

that

the

Fund

could

not

meet

requests

to

redeem

shares

issued

by

the

Fund

without

significant

dilution

of

remaining

investors’

interests

in

the

Fund.

In

accordance

with

the

Liquidity

Rule,

the

LRMP

includes

policies

and

procedures

that

provide

for:

(1)

assessment,

management,

and

review

(no

less

frequently

than

annually)

of

each

Fund’s

liquidity

risk;

(2)

classification

of

each

Fund’s

portfolio

holdings

into

one

of

four

liquidity

categories

(Highly

Liquid,

Moderately

Liquid,

Less

Liquid,

and

Illiquid);

(3)

for

Funds

that

do

not

primarily

hold

assets

that

are

Highly

Liquid,

establishing

and

maintaining

a

minimum

percentage

of

the

Fund’s

net

assets

in

Highly

Liquid

investments

(called

a

“Highly

Liquid

Investment

Minimum”

or

“HLIM”);

and

(4)

prohibiting

the

Fund’s

acquisition

of

Illiquid

investments

that

would

result

in

the

Fund

holding

more

than

15%

of

its

net

assets

in

Illiquid

assets.

The

LRMP

also

requires

reporting

to

the

Securities

and

Exchange

Commission

(“SEC”)

(on

a

non-public

basis)

and

to

the

Board

if

the

Fund’s

holdings

of

Illiquid

assets

exceed

15%

of

the

Fund’s

net

assets.

Funds

with

HLIMs

must

have

procedures

for

addressing

HLIM

shortfalls,

including

reporting

to

the

Board

and,

with

respect

to

HLIM

shortfalls

lasting

more

than

seven

consecutive

calendar

days,

reporting

to

the

SEC

(on

a

non-public

basis).

The

Director

of

Liquidity

Risk

within

the

Investment

Risk

Management

Group

(the

“IRMG”)

is

the

appointed

Administrator

of

the

LRMP.

The

IRMG

maintains

the

Investment

Liquidity

Committee

(the

“ILC”)

to

provide

oversight

and

administration

of

policies

and

procedures

governing

liquidity

risk

management

for

Franklin

Templeton

and

Legg

Mason

products

and

portfolios.

The

ILC

includes

representatives

from

Franklin

Templeton’s

Risk,

Trading,

Global

Compliance,

Legal,

Investment

Compliance,

Investment

Operations,

Valuation

Committee,

Product

Management

and

Global

Product

Strategy.

Templeton

Developing

Markets

Trust

Shareholder

Information

37

franklintempleton.com

Semiannual

Report

In

assessing

and

managing

each

Fund’s

liquidity

risk,

the

ILC

considers,

as

relevant,

a

variety

of

factors,

including

the

Fund’s

investment

strategy

and

the

liquidity

of

its

portfolio

investments

during

both

normal

and

reasonably

foreseeable

stressed

conditions;

its

short

and

long-term

cash

flow

projections;

and

its

cash

holdings

and

access

to

other

funding

sources

including

the

Funds’

interfund

lending

facility

and

line

of

credit.

Classification

of

the

Fund’s

portfolio

holdings

in

the

four

liquidity

categories

is

based

on

the

number

of

days

it

is

reasonably

expected

to

take

to

convert

the

investment

to

cash

(for

Highly

Liquid

and

Moderately

Liquid

holdings)

or

sell

or

dispose

of

the

investment

(for

Less

Liquid

and

Illiquid

investments),

in

current

market

conditions

without

significantly

changing

the

investment’s

market

value.

Each

Fund

primarily

holds

liquid

assets

that

are

defined

under

the

Liquidity

Rule

as

"Highly

Liquid

Investments,"

and

therefore

is

not

required

to

establish

an

HLIM.

Highly

Liquid

Investments

are

defined

as

cash

and

any

investment

reasonably

expected

to

be

convertible

to

cash

in

current

market

conditions

in

three

business

days

or

less

without

the

conversion

to

cash

significantly

changing

the

market

value

of

the

investment.

At

meetings

of

the

Funds’

Board

of

Trustees

held

in

May

2022,

the

Program

Administrator

provided

a

written

report

to

the

Board

addressing

the

adequacy

and

effectiveness

of

the

program

for

the

year

ended

December

31,

2021.

The

Program

Administrator

report

concluded

that

(i.)

the

LRMP,

as

adopted

and

implemented,

remains

reasonably

designed

to

assess

and

manage

each

Fund’s

liquidity

risk;

(ii.)

the

LRMP,

including

the

Highly

Liquid

Investment

Minimum

(“HLIM”)

where

applicable,

was

implemented

and

operated

effectively

to

achieve

the

goal

of

assessing

and

managing

each

Fund’s

liquidity

risk;

and

(iii.)

each

Fund

was

able

to

meet

requests

for

redemption

without

significant

dilution

of

remaining

investors’

interests

in

the

Fund.

Proxy

Voting

Policies

and

Procedures

The

Trust’s

investment

manager

has

established

Proxy

Voting

Policies

and

Procedures

(Policies)

that

the

Trust

uses

to

determine

how

to

vote

proxies

relating

to

portfolio

securities.

Shareholders

may

view

the

Trust’s

complete

Policies

online

at

franklintempleton.com.

Alternatively,

shareholders

may

request

copies

of

the

Policies

free

of

charge

by

calling

the

Proxy

Group

collect

at

(954)

527-

7678

or

by

sending

a

written

request

to:

Franklin

Templeton

Companies,

LLC,

300

S.E.

2nd

Street,

Fort

Lauderdale,

FL

33301,

Attention:

Proxy

Group.

Copies

of

the

Trust’s

proxy

voting

records

are

also

made

available

online

at

franklintempleton.com

and

posted

on

the

U.S.

Securities

and

Exchange

Commission’s

website

at

sec.gov

and

reflect

the

most

recent

12-month

period

ended

June

30.

Quarterly

Schedule

of

Investments

The

Trust

files

a

complete

schedule

of

investments

with

the

U.S.

Securities

and

Exchange

Commission

for

the

first

and

third

quarters

for

each

fiscal

year

as

an

exhibit

to

its

report

on

Form

N-PORT.

Shareholders

may

view

the

filed

Form

N-PORT

by

visiting

the

Commission’s

website

at

sec.

gov.

The

filed

form

may

also

be

viewed

and

copied

at

the

Commission’s

Public

Reference

Room

in

Washington,

DC.

Information

regarding

the

operations

of

the

Public

Reference

Room

may

be

obtained

by

calling

(800)

SEC-0330.

Householding

of

Reports

and

Prospectuses

You

will

receive,

or

receive

notice

of

the

availability

of,

the

Fund’s

financial

reports

every

six

months.

In

addition,

you

will

receive

as

an

annual

updated

summary

prospectus

(detail

prospectus

available

upon

request).

To

reduce

Fund

expenses,

we

try

to

identify

related

shareholders

in

a

household

and

send

only

one

copy

of

the

financial

reports

(to

the

extent

received

by

mail)

and

summary

prospectus.

This

process,

called

“householding,”

will

continue

indefinitely

unless

you

instruct

us

otherwise.

If

you

prefer

not

to

have

these

documents

householded,

please

call

us

at

(800)

632-2301.

At

any

time

you

may

view

current

prospectuses/

summary

prospectuses

and

financial

reports

on

our

website.

If

you

choose,

you

may

receive

these

documents

through

electronic

delivery.

711

S

08/22

©

2022

Franklin

Templeton

Investments.

All

rights

reserved.

Authorized

for

distribution

only

when

accompanied

or

preceded

by

a

summary

prospectus

and/or

prospectus.

Investors

should

carefully

consider

a

fund’s

investment

goals,

risks,

charges

and

expenses

before

investing.

A

prospectus

contains

this

and

other

information;

please

read

it

carefully

before

investing.

To

help

ensure

we

provide

you

with

quality

service,

all

calls

to

and

from

our

service

areas

are

monitored

and/or

recorded.

Semiannual

Report

and

Shareholder

Letter

Templeton

Developing

Markets

Trust

Investment

Manager

Distributor

Shareholder

Services

Templeton

Asset

Management

Ltd.

Franklin

Distributors,

LLC

(800)

DIAL

BEN

®

/

342-5236

franklintempleton.com

(800)

632-2301

Item 2. Code of Ethics.

(a) The Registrant has adopted a code of ethics that applies to its principal executive officers and principal financial and accounting officer. 

(c) N/A

(d) N/A

(f) Pursuant to Item 13(a)(1), the Registrant is attaching as an exhibit a copy of its code of ethics that applies to its principal executive officers and principal financial and accounting officer.

Item 3. Audit Committee Financial Expert.

(a)(1) The Registrant has an audit committee financial expert serving on its audit committee.

(2)

The audit committee financial expert are Ann Torre Bates and David W. Niemiec and they are "independent" as defined under the relevant Securities and Exchange Commission Rules and Releases.

Item 4.

Principal Accountant Fees and Services. N/A

Item 5. Audit Committee

of Listed Registrants.

  N/A

Item 6. Schedule of Investments. N/A

Item 7

. Disclosure of Proxy Voting Policies and Procedures for

Closed-End Management Investment Companies.  N/A

Item 8. Portfolio Managers of Closed-End Management Investment Companies.  N/A

Item 9

. Purchases of Equity Securities by Closed-End Management Investment Company and Affiliated Purchasers.  N/A

Item 10

. Submission of Matters to a Vote of Security Holders.

There have been no changes to the procedures by which shareholders may recommend nominees to the Registrant's Board of Trustees that would require disclosure herein.

Item 11. Controls and Procedures.

(a) Evaluation of Disclosure Controls and Procedures.

The Registrant maintains disclosure controls and procedures that are designed to provide reasonable assurance that information required to be disclosed in the Registrant’s filings under the Securities Exchange Act of 1934, as amended, and the Investment Company Act of 1940 is recorded, processed, summarized and reported within the periods specified in the rules and forms of the Securities and Exchange Commission. Such information is accumulated and communicated to the Registrant’s management, including its principal executive officer and principal financial officer, as appropriate, to allow timely decisions regarding required disclosure. The Registrant’s management, including the principal executive officer and the principal financial officer, recognizes that any set of controls and procedures, no matter how well designed and operated, can provide only reasonable assurance of achieving the desired control objectives.

Within 90 days prior to the filing date of this Shareholder Report on Form N-CSR, the Registrant had carried out an evaluation, under the supervision and with the participation of the Registrant’s management, including the Registrant’s principal executive officer and the Registrant’s principal financial officer, of the effectiveness of the design and operation of the Registrant’s disclosure controls and procedures. Based on such evaluation, the Registrant’s principal executive officer and principal financial officer concluded that the Registrant’s disclosure controls and procedures are effective. 

(b) Changes in Internal Controls.

 There have been no changes in the Registrant’s internal control over financial reporting that occurred during the period covered by this report that has materially affected, or is reasonably likely to materially affect the internal control over financial reporting.

Item 12. Disclosure of Securities Lending Activities for Closed-End Management Investment Company.    

N/A

Item 13. Exhibits.

(a)(1) Code of Ethics

codeofethics

(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 Christopher Kings, Chief Financial Officer, Chief Accounting Officer and Treasurer

section302

(a)(2)(1) There were no written solicitations to purchase securities under Rule 23c-1 under the Act sent or given during the period covered by the report by or on behalf of the Registrant to 10 or more persons.

(a)(2)(2) There was no change in the Registrant’s independent public accountant during the period covered by the report.

(b) Certifications pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 of Matthew T. Hinkle, Chief Executive Officer - Finance and Administration, and Christopher Kings, Chief Financial Officer, Chief Accounting Officer and Treasurer

section906

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

TEMPLETON DEVELOPING MARKETS TRUST

By S\MATTHEW T. HINKLE______________________

Matthew T. Hinkle

      Chief Executive Officer - Finance and Administration

Date  August 26, 2022

Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated.

By S\MATTHEW T. HINKLE______________________

Matthew T. Hinkle

      Chief Executive Officer - Finance and Administration

Date  August 26, 2022

By S\CHRISTOPHER KINGS______________________

      Christopher Kings

      Chief Financial Officer, Chief Accounting Officer and Treasurer

Date  August 26, 2022