UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM N-Q
QUARTERLY SCHEDULE OF PORTFOLIO HOLDINGS
OF REGISTERED MANAGEMENT INVESTMENT COMPANIES
Investment Company Act file number: | 811-04710 | |
Exact name of registrant as specified in charter: | The Asia Pacific Fund, Inc. | |
Address of principal executive offices: | Gateway Center 3, 100 Mulberry Street, Newark, New Jersey 07102 | |
Name and address of agent for service: | Deborah A. Docs Gateway Center 3, 100 Mulberry Street, Newark, New Jersey 07102 | |
Registrants telephone number, including area code: | 973-367-7521 | |
Date of fiscal year end: | 03/31/2015 | |
Date of reporting period: | 12/31/2014 |
Item 1. Schedule of Investments
THE ASIA PACIFIC FUND, INC.
Schedule of Investments
as of December 31, 2014
(Unaudited)
Shares | Description |
Value | ||||
LONG-TERM INVESTMENTS98.3% |
||||||
COMMON STOCKS83.0% |
||||||
CHINA (INCLUDING HONG KONG SAR)59.5% | ||||||
7,131,000 | Agricultural Bank of China Ltd. |
$ | 3,586,649 | |||
(Banking) |
||||||
974,000 | Anhui Expressway Co. Ltd. |
652,571 | ||||
(Industrials) |
||||||
1,387,500 | Asia Cement China Holdings Corp. |
806,467 | ||||
(Materials) |
||||||
11,875,000 | Bank of China Ltd. |
6,665,075 | ||||
(Banking) |
||||||
643,000 | Belle International Holdings Ltd. |
722,249 | ||||
(Real Estate-Developers) |
||||||
653,000 | BOC Hong Kong Holdings Ltd. |
2,175,888 | ||||
(Banking) |
||||||
1,368,000 | Chaowei Power Holdings Ltd. |
575,500 | ||||
(Consumer Discretionary) |
||||||
726,000 | China BlueChemical Ltd. |
256,771 | ||||
(Materials) |
||||||
6,369,000 | China Construction Bank Corp. |
5,202,089 | ||||
(Banking) |
||||||
368,000 | China Life Insurance Co. Ltd. |
1,441,877 | ||||
(Insurance) |
||||||
3,115,000 | China Lilang Ltd. |
1,954,161 | ||||
(Consumer Discretionary) |
||||||
2,144,000 | China Machinery Engineering Corp. |
1,637,625 | ||||
(Materials) |
||||||
1,014,000 | China Petroleum & Chemical Corp. |
821,177 | ||||
(Energy) |
||||||
6,189,000 | China Power International Development Ltd. |
3,122,889 | ||||
(Utilities) |
||||||
1,938,000 | China Resources Cement Holdings Ltd. |
1,248,977 | ||||
(Materials) |
||||||
1,200,000 | China Resources Power Holdings Co. Ltd. |
3,060,871 | ||||
(Utilities) |
||||||
555,500 | China Shenhua Energy Co. Ltd. |
1,639,232 | ||||
(Energy) |
||||||
2,766,000 | China Telecom Corp. Ltd. |
1,604,245 | ||||
(Telecommunication Services) |
||||||
2,432,838 | China Vanke Co. Ltd. |
5,396,878 | ||||
(Real Estate-Developers) |
||||||
257,000 | Chow Sang Sang Holdings International Ltd. |
674,653 | ||||
(Consumer Discretionary) |
||||||
3,992,000 | CIFI Holdings Group Co. Ltd. |
794,840 | ||||
(Real Estate-Developers) |
||||||
30,750,000 | CSI Properties Ltd. |
1,218,179 | ||||
(Real Estate-Developers) |
||||||
256,000 | Dongfeng Motor Group Co. Ltd. |
358,099 | ||||
(Consumer Discretionary) |
||||||
1,198,000 | EGL Holdings Co. Ltd.* |
241,001 | ||||
(Consumer Discretionary) |
||||||
3,608,000 | Far East Consortium International Ltd. |
1,391,787 | ||||
(Real Estate-Developers) |
||||||
248,000 | Great Wall Motor Co. Ltd. |
1,402,805 | ||||
(Consumer Discretionary) |
||||||
5,276,000 | Hopefluent Group Holdings Ltd. |
1,635,882 | ||||
(Real Estate-Developers) |
||||||
1,845,481 | Hui Xian Real Estate Investment Trust |
1,034,243 | ||||
(Real Estate Investment Trusts) |
55,000 | Hutchison Whampoa Ltd. |
628,736 | ||||
(Industrials) |
||||||
456,000 | Jiangnan Group Ltd. |
78,797 | ||||
(Industrials) |
||||||
1,074,000 | Lee & Man Chemical Co. Ltd. |
645,399 | ||||
(Industrials) |
||||||
326,000 | Luk Fook Holdings International Ltd. |
1,222,542 | ||||
(Consumer Discretionary) |
||||||
1,379,179 | Luthai Textile Co. Ltd. |
1,830,096 | ||||
(Consumer Discretionary) |
||||||
997,533 | PCCW Ltd. |
679,211 | ||||
(Telecommunication Services) |
||||||
2,602,000 | PetroChina Co. Ltd. |
2,888,446 | ||||
(Energy) |
||||||
808,500 | Shimao Property Holdings Ltd. |
1,790,504 | ||||
(Real Estate-Developers) |
||||||
624,000 | Sino Land Co. Ltd. |
1,001,710 | ||||
(Real Estate-Developers) |
||||||
2,781,525 | Sino-Ocean Land Holdings Ltd. |
1,568,311 | ||||
(Real Estate-Developers) |
||||||
1,131,000 | Sinopec Engineering Group Co. Ltd. |
761,190 | ||||
(Industrials) |
||||||
1,960,000 | SITC International Holdings Co. Ltd. |
1,069,193 | ||||
(Industrials) |
||||||
254,000 | SJM Holdings Ltd. |
401,548 | ||||
(Consumer Discretionary) |
||||||
4,054,000 | Skyworth Digital Holdings Ltd. |
2,193,858 | ||||
(Consumer Discretionary) |
||||||
2,042,000 | Spring Real Estate Investment Trust |
966,621 | ||||
(Real Estate Investment Trusts) |
||||||
3,398,000 | Springland International Holdings Ltd. |
1,176,141 | ||||
(Consumer Discretionary) |
||||||
2,114,000 | TK Group Holdings Ltd. |
439,957 | ||||
(Industrials) |
||||||
2,404,000 | Trigiant Group Ltd. |
399,562 | ||||
(Industrials) |
||||||
4,992,000 | Welling Holding Ltd. |
991,364 | ||||
(Consumer Discretionary) |
||||||
2,254,000 | Wonderful Sky Financial Group Holdings Ltd. |
421,980 | ||||
(Consumer Discretionary) |
||||||
1,424,000 | Xtep International Holdings Ltd. |
572,375 | ||||
(Consumer Discretionary) |
||||||
745,500 | Yangtze Optical Fibre And Cable Joint Stock Ltd. Co. |
644,110 | ||||
(Technology Hardware & Equipment) |
||||||
2,240,000 | Yangzijiang Shipbuilding Holdings Ltd. |
2,029,920 | ||||
(Telecommunication Services) |
||||||
973,000 | Yuexiu Real Estate Investment Trust |
486,730 | ||||
(Real Estate Investment Trusts) |
||||||
674,200 | Zhengzhou Coal Mining Machinery Group Co. Ltd. |
420,980 | ||||
(Industrials) |
||||||
782,400 | Zoomlion Heavy Industry Science & Technology Co. Ltd. |
593,724 | ||||
(Industrials) |
||||||
|
|
|||||
77,225,685 | ||||||
|
|
|||||
INDONESIA0.8% | ||||||
4,398,800 | PT Telekomunikasi Indonesia (Persero) Tbk |
1,010,971 | ||||
(Telecommunication Services) |
||||||
|
|
MALAYSIA1.6% | ||||||
1,370,400 | Mah Sing Group Bhd |
882,835 | ||||
(Real Estate-Developers) |
||||||
1,714,000 | Nam Cheong Ltd. |
404,304 | ||||
(Industrials) |
||||||
1 | United Overseas Australia Ltd. |
1 | ||||
(Real Estate-Developers) |
||||||
1,246,900 | UOA Development Bhd |
752,637 | ||||
(Real Estate-Developers) |
||||||
|
|
|||||
2,039,777 | ||||||
|
|
|||||
PHILIPPINES | ||||||
126,700 | Leisure & Resorts World Corp. |
33,318 | ||||
(Consumer Discretionary) |
||||||
|
|
|||||
SINGAPORE5.8% | ||||||
218,256 | AIMS AMP Capital Industrial REIT |
233,143 | ||||
(Real Estate Investment Trusts) |
||||||
2,997,000 | Asian Pay Television Trust |
1,945,737 | ||||
(Consumer Discretionary) |
||||||
2,283,000 | China Merchants Holdings Pacific Ltd. |
1,681,163 | ||||
(Industrials) |
||||||
957,000 | Croesus Retail Trust |
666,922 | ||||
(Real Estate Investment Trusts) |
||||||
76,000 | DBS Group Holdings Ltd. |
1,176,581 | ||||
(Banking) |
||||||
906,000 | Ezion Holdings Ltd. |
765,285 | ||||
(Energy) |
||||||
169,000 | Frasers Commercial Trust |
179,800 | ||||
(Real Estate Investment Trusts) |
||||||
83,000 | Keppel Corp. Ltd. |
553,226 | ||||
(Industrials) |
||||||
678,000 | Vard Holdings Ltd.* |
306,191 | ||||
(Industrials) |
||||||
|
|
|||||
7,508,048 | ||||||
|
|
|||||
SOUTH KOREA9.6% | ||||||
759 | Alticast Corp.* |
6,827 | ||||
(Software & Services) |
||||||
15,350 | BGF Retail Co. Ltd.* |
1,068,348 | ||||
(Consumer Staples) |
||||||
3,849 | Cheil Industries, Inc.* |
553,284 | ||||
(Industrials) |
||||||
83,098 | DGB Financial Group, Inc. |
854,176 | ||||
(Banking) |
||||||
26,489 | GS Retail Co. Ltd. |
616,007 | ||||
(Consumer Staples) |
||||||
48,074 | Kia Motors Corp. |
2,284,284 | ||||
(Consumer Discretionary) |
||||||
15,880 | Korea Electric Power Corp. |
611,904 | ||||
(Utilities) |
||||||
201,099 | Macquarie Korea Infrastructure Fund |
1,253,267 | ||||
(Capital Markets) |
||||||
535 | Samsung Electronics Co. Ltd. |
643,201 | ||||
(Semiconductors & Semiconductor Equipment) |
||||||
27,993 | SK Hynix, Inc.* |
1,196,293 | ||||
(Semiconductors & Semiconductor Equipment) |
||||||
14,014 | SK Telecom Co. Ltd. |
3,427,726 | ||||
(Telecommunication Services) |
||||||
|
|
|||||
12,515,317 | ||||||
|
|
|||||
TAIWAN3.7% | ||||||
738,000 | Advanced Semiconductor Engineering, Inc. |
876,469 | ||||
(Semiconductors & Semiconductor Equipment) |
||||||
42,000 | Casetek Holdings Ltd. |
236,502 | ||||
(Technology Hardware & Equipment) |
405,000 | China Development Financial Holding Corp. |
128,669 | ||||
(Banking) |
||||||
267,000 | Huaku Development Co. Ltd. |
478,791 | ||||
(Real Estate-Developers) |
||||||
166,000 | Novatek Microelectronics Corp. |
927,624 | ||||
(Semiconductors & Semiconductor Equipment) |
||||||
353,000 | Taiwan Semiconductor Manufacturing Co. Ltd. |
1,555,131 | ||||
(Semiconductors & Semiconductor Equipment) |
||||||
31,000 | Tong Hsing Electronic Industries Ltd. |
106,129 | ||||
(Technology Hardware & Equipment) |
||||||
170,000 | UDE Corp. |
420,004 | ||||
(Technology Hardware & Equipment) |
||||||
|
|
|||||
4,729,319 | ||||||
|
|
|||||
THAILAND2.0% | ||||||
1,051,300 | Bangchak Petroleum PCL (The) |
1,014,552 | ||||
(Energy) |
||||||
224,700 | Tisco Financial Group PCL |
290,266 | ||||
(Banking) |
||||||
4,136,600 | TRUE Telecommunication Growth Infrastructure Fund |
1,345,338 | ||||
(Telecommunication Services) |
||||||
|
|
|||||
2,650,156 | ||||||
|
|
|||||
Total common stocks |
107,712,591 | |||||
|
|
|||||
PREFERENCE SHARES15.3% | ||||||
SOUTH KOREA | ||||||
4,335 | Amorepacific Corp. |
4,245,894 | ||||
(Consumer Staples) |
||||||
22,698 | Hyundai Motor Co. |
2,407,568 | ||||
(Consumer Discretionary) |
||||||
36,594 | Hyundai Motor Co. |
4,178,267 | ||||
(Consumer Discretionary) |
||||||
43,997 | LG Corp. |
1,650,926 | ||||
(Industrials) |
||||||
3,355 | Samsung Electronics Co. Ltd. |
3,155,614 | ||||
(Semiconductors & Semiconductor Equipment) |
||||||
27,887 | Samsung Fire & Marine Insurance Co. Ltd. |
4,249,714 | ||||
(Insurance) |
||||||
|
|
|||||
Total preferred stocks |
19,887,983 | |||||
|
|
|||||
RIGHTS(b)* | ||||||
Units |
||||||
SOUTH KOREA | ||||||
17,356 | DGB Financial Group, Inc. |
18,132 | ||||
(Banking) |
||||||
|
|
|||||
Total long-term investments |
127,618,706 | |||||
|
|
|||||
SHORT-TERM INVESTMENT0.8% | ||||||
MONEY MARKET MUTUAL FUND | ||||||
Shares |
||||||
986,404 | JPMorgan Prime Money Market Fund/Premier |
986,404 | ||||
|
|
|||||
Total Investments99.1% |
128,605,110 | |||||
Other assets in excess of liabilities0.9% |
1,220,120 | |||||
|
|
|||||
Net Assets100.0% |
$ | 129,825,230 | ||||
|
|
The following abbreviation is used in the portfolio descriptions:
REIT | Real Estate Investment Trust |
* | Non-income producing security. |
(a) | The United States federal income tax basis of investments and net unrealized appreciation were as follows: |
Tax Basis |
$ | 119,801,363 | ||
|
|
|||
Appreciation |
14,056,331 | |||
Depreciation |
(5,252,584 | ) | ||
|
|
|||
Net Unrealized Appreciation |
$ | 8,803,747 | ||
|
|
The book basis may differ from tax basis due to certain tax-related adjustments.
(b) | The amount represents fair value of derivative instruments subject to equity risk exposure as of December 31, 2014. |
Various inputs are used in determining the value of the Funds investments. These inputs are summarized in the three broad levels listed below.
Level 1quoted prices generally in active markets for identical securities.
Level 2quoted prices for similar securities, interest rates and yield curves, prepayment speeds, foreign currency exchange rates and other significant observable inputs.
Level 3significant unobservable inputs for securities valued in accordance with Board approved fair valuation procedures.
The following is a summary of the inputs used as of December 31, 2014 in valuing such portfolio securities:
Level 1 | Level 2 | Level 3 | ||||||||||
Investments in Securities |
|
|||||||||||
Common Stocks |
||||||||||||
China (including Hong Kong SAR) |
$ | 4,430,767 | $ | 72,794,918 | $ | | ||||||
Indonesia |
| 1,010,971 | | |||||||||
Malaysia |
1 | 2,039,776 | | |||||||||
Philippines |
| 33,318 | | |||||||||
Singapore |
2,178,880 | 5,329,168 | | |||||||||
South Korea |
2,874,899 | 9,640,418 | | |||||||||
Taiwan |
| 4,729,319 | | |||||||||
Thailand |
| 2,650,156 | | |||||||||
Preference Shares |
||||||||||||
South Korea |
4,249,714 | 15,638,269 | | |||||||||
Rights |
||||||||||||
South Korea |
| 18,132 | | |||||||||
Money Market Mutual Fund |
986,404 | | | |||||||||
|
|
|
|
|
|
|||||||
Total |
$ | 14,720,665 | $ | 113,884,445 | $ | | ||||||
|
|
|
|
|
|
Fair Value of Level 2 investments at 3/31/14 was $877,240, which was a result of valuing investments using third party vendor modeling tools. An amount of $79,928,216 was transferred from Level 1 into Level 2 at 12/31/14 as result of fair valuing such foreign securities using third party vendor modeling tools. Such fair values are used to reflect the impact of significant market movements between the time at which the fund normally values its securities and the earlier closing of foreign markets.
It is the Funds policy to recognize transfers in and transfers out at the fair value as of the beginning of period.
The industry classification of investments and other assets in excess of liabilities shown as a percentage of net assets as of December 31, 2014 was as follows:
Consumer Discretionary |
19.2 | % | ||
Banking |
15.5 | |||
Real Estate-Developers |
13.6 | |||
Industrials |
11.6 | |||
Telecommunication Services |
7.8 | |||
Semiconductors & Semiconductor Equipment |
6.4 | |||
Energy |
5.5 | |||
Utilities |
5.2 | |||
Consumer Staples |
4.6 | |||
Materials |
3.0 | |||
Real Estate Investment Trusts |
2.7 | |||
Insurance |
1.1 | |||
Technology Hardware & Equipment |
1.1 | |||
Capital Markets |
1.0 | |||
Money Market Mutual Fund |
0.8 | |||
Software & Services |
| * | ||
|
|
|||
99.1 | ||||
Other assets in excess of liabilities |
0.9 | |||
|
|
|||
100.0 | % | |||
|
|
* | Less than 0.05%. |
Notes to Schedule of Investments (Unaudited)
Securities Valuation: The Fund holds portfolio securities and other assets that are fair valued at the close of each day the New York Stock Exchange (NYSE) is open for trading. 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 Board of Directors (the Board) has adopted Valuation Procedures for security valuation under which fair valuation responsibilities have been delegated to the Investment Manager, Value Partners Hong Kong Limited. Under the current Valuation Procedures, the established Valuation Committee is responsible for supervising the valuation of portfolio securities and other assets. The Valuation Procedures permit the Fund to utilize independent pricing vendor services, quotations from market makers and alternative valuation methods when market quotations are not readily available or not deemed representative of fair value. A record of the Valuation Committees actions is subject to the Boards review, approval, and ratification at its next regularly-scheduled quarterly meeting.
Various inputs determine how the Funds investments are valued, all of which are categorized according to the three broad levels (Level 1, 2, or 3) detailed in the table following the Schedule of Investments.
Common stocks and preference shares, exchange-traded funds, and derivative instruments that are traded on a national securities exchange are valued at the last sale price as of the close of trading on the applicable exchange. Securities traded via NASDAQ are valued at the NASDAQ official closing price. To the extent these securities are valued at the last sale price or NASDAQ official closing price, they are classified as Level 1 of the fair value hierarchy.
In the event that no sale or official closing price on valuation date exists, these securities are generally valued at the mean between the last reported bid and asked prices, or at the last bid price in absence of an asked price. These securities are classified as Level 2 of the fair value hierarchy, as the inputs are considered to be significant to the valuation.
For common stocks and preference shares traded on foreign securities exchanges, certain valuation adjustments will be applied when events occur after the close of the securitys foreign market and before the Funds normal pricing time. These securities are valued using pricing vendor services that provide model prices derived using adjustment factors based on information such as local closing price, relevant general and sector indices, currency fluctuations, depositary receipts, and futures, as applicable. Securities valued using such model prices are classified as Level 2 of the fair value hierarchy, as the adjustment factors are observable and considered to be significant to the valuation. Such securities are valued using model prices to the extent that the valuation meets the established confidence level for each security. If the confidence level is not met or the vendor does not provide a model price, securities are valued in accordance with exchange-traded common stocks and preference shares discussed above.
Investments in open end, non-exchange-traded mutual funds are valued at their net asset values as of the close of the NYSE on the date of valuation. These securities are classified as Level 1 in the fair value hierarchy since they may be purchased or sold at their net asset value on the date of valuation.
Portfolio securities and other assets that cannot be priced according to the methods described above are valued based on pricing methodologies approved by the Board. In the event that significant unobservable inputs are used when determining such valuations, the securities will be classified as Level 3 of the fair value hierarchy.
When determining the fair valuation of securities, some of the factors influencing the valuation include: the nature of any restrictions on disposition of the securities; assessment of the general liquidity of the securities; the issuers financial condition and the markets in which it does business; the cost of the investment; the size of the holding and the capitalization of the issuer; the prices of any recent transactions or bids/offers for such securities or any comparable securities; any available analyst media or other reports or information deemed reliable by the investment manager regarding the issuer or the markets or industry in which it operates. Using fair value to price securities may result in a value that is different from a securitys most recent closing price and from the price used by other mutual funds to calculate their net asset values.
Market values of investments traded in foreign currency are translated into U.S. dollars at the current rates of exchange.
Other information regarding the Fund is available in the Funds most recent Report to Shareholders. This information is available on the Securities and Exchange Commissions website (www.sec.gov).
Item 2. Controls and Procedures
(a) | It is the conclusion of the registrants principal executive officer and principal financial officer that the effectiveness of the registrants current disclosure controls and procedures (such disclosure controls and procedures having been evaluated within 90 days of the date of this filing) provide reasonable assurance that the information required to be disclosed by the registrant has been recorded, processed, summarized and reported within the time period specified in the Commissions rules and forms and that the information required to be disclosed by the registrant has been accumulated and communicated to the registrants principal executive officer and principal financial officer in order to allow timely decisions regarding required disclosure. |
(b) | There have been no significant changes in the registrants internal controls or in other factors that could significantly affect these controls subsequent to the date of their evaluation, including any corrective actions with regard to significant deficiencies and material weaknesses. |
Item 3. Exhibits
Certifications pursuant to Rule 30a-2(a) under the Investment Company Act of 1940 Attached hereto.
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.
(Registrant) The Asia Pacific Fund, Inc.
By (Signature and Title)* | /s/ Deborah A. Docs |
|||
Deborah A. Docs | ||||
Secretary of the Fund |
Date February 25, 2015
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 (Signature and Title)* | /s/ Raymond Tam |
|||
Raymond Tam | ||||
President and Principal Executive Officer |
Date February 25, 2015
By (Signature and Title)* | /s/ M. Sadiq Peshimam |
|||
M. Sadiq Peshimam | ||||
Treasurer and Principal Financial Officer |
Date February 25, 2015
* | Print the name and title of each signing officer under his or her signature. |