---

Item 1. Schedule of Investments

---

 

		Shares				Value
LONG-TERM INVESTMENTS — 97.4%
COMMON STOCKS — 86.8%
CHINA (INCLUDING HONG KONG and MACAU SAR) — 61.1%
Agricultural Bank of China Ltd. (Class "H" Shares) (Banking)			3,054,000			$	1,122,115
Anhui Conch Cement Co. Ltd. (Class "H" Shares) (Materials)			164,000				397,081
BAIC Motor Corp. Ltd. (Class "H" Shares) (Consumer Discretionary)			1,027,000				724,269
Bank of China Ltd. (Class "H" Shares) (Banking)			3,993,000				1,604,818
Belle International Holdings Ltd. (Consumer Discretionary)			1,619,000				952,885
BOC Hong Kong Holdings Ltd. (Banking)			653,500				1,969,227
Cheung Kong Property Holdings Ltd. (Real Estate)			127,656				804,316
China Construction Bank Corp. (Class "H" Shares) (Banking)			5,341,000				3,560,514
China High Speed Transmission Equipment Group Co. Ltd. (Industrials)			2,256,000				1,817,567
China Life Insurance Co. Ltd. (Class "H" Shares) (Insurance)			1,365,000				2,943,107
China Lilang Ltd. (Consumer Discretionary)			2,315,000				1,477,117
China Machinery Engineering Corp. (Class "H" Shares) (Industrials)			894,000				584,580
China Overseas Land & Investment Ltd. (Real Estate)			1,212,000				3,863,676
China Power International Development Ltd. (Utilities)			4,616,000				1,703,935
China Resources Cement Holdings Ltd. (Materials)			1,766,000				569,335
China Resources Power Holdings Co. Ltd. (Utilities)			1,084,622				1,627,747
China State Construction International Holdings Ltd. (Industrials)			1,560,000				2,069,918
China Zhongwang Holdings Ltd. (Materials)			1,699,200				759,552
Chongqing Changan Automobile Co. Ltd. (Class "B" Shares) (Consumer Discretionary)			1,155,285				1,618,304
Chow Sang Sang Holdings International Ltd. (Consumer Discretionary)			479,000				848,751
CIFI Holdings Group Co. Ltd. (Real Estate)			5,220,000				1,287,490
CK Hutchison Holdings Ltd. (Industrials)			175,656				1,932,297
Convenience Retail Asia Ltd. (Consumer Staples)			1,070,000				467,425
CSI Properties Ltd. (Real Estate)			30,750,000				1,093,533
Dalian Wanda Commercial Properties Co. Ltd. (Class "H" Shares) (Real Estate)			133,800				828,080
Dongfeng Motor Group Co. Ltd. (Class "H" Shares) (Consumer Discretionary)			442,000				465,891
EGL Holdings Co. Ltd. (Consumer Discretionary)			2,896,000				702,701
Far East Consortium International Ltd. (Real Estate)			3,135,938				993,270
Far East Horizon Ltd. (Financials)			1,248,000				974,739
FSE Engineering Holdings Ltd. (Industrials)			2,397,000				641,691
Goldpac Group Ltd. (Technology Hardware & Equipment)			1,007,000				284,073
Haitian International Holdings Ltd. (Industrials)			234,000				414,019
Hopefluent Group Holdings Ltd. (Real Estate)			4,560,000				1,217,849
Huadian Power International Corp. Ltd. (Class "H" Shares) (Utilities)			910,000				436,153
Hui Xian Real Estate Investment Trust (Real Estate Investment Trusts)			918,395				439,158
IT Ltd. (Consumer Discretionary)			348,000				103,706
Jiangnan Group Ltd. (Industrials)			9,962,000				1,600,113
Langham Hospitality Investments (Real Estate)			477,000				168,279
Lee & Man Chemical Co. Ltd. (Materials)			1,246,000				334,061
Longfor Properties Co. Ltd. (Real Estate)			2,445,000				3,189,992
Modern Beauty Salon Holdings Ltd. (Consumer Discretionary)			5,368,000				287,148
Oi Wah Pawnshop Credit Holdings Ltd. (Diversified Financials)			7,680,000				459,640
PetroChina Co. Ltd. (Class "H" Shares) (Energy)			6,404,000				4,413,882
Pico Far East Holdings Ltd. (Consumer Discretionary)			1,650,000				465,771
Qingdao Port International Co. Ltd. (Class "H" Shares) (Industrials)			3,592,000				1,636,462
Shimao Property Holdings Ltd. (Real Estate)			411,500				523,183
Sino Land Co. Ltd. (Real Estate)			28,235				46,489
Sinomax Group Ltd. (Consumer Discretionary)			4,264,000				533,831
Sinopec Engineering Group Co. Ltd. (Class "H" Shares) (Industrials)			2,523,500				2,289,824
SITC International Holdings Co. Ltd. (Industrials)			2,150,000				1,130,999
Skyworth Digital Holdings Ltd. (Consumer Discretionary)			2,920,025				2,409,436
SmarTone Telecommunications Holdings Ltd. (Telecommunication Services)			707,000				1,263,259
Spring Real Estate Investment Trust (Real Estate Investment Trusts)			1,145,000				497,968
Springland International Holdings Ltd. (Consumer Discretionary)			1,608,000				208,329
Sun Hung Kai Properties Ltd. (Real Estate)			93,000				1,122,407
Time Watch Investments Ltd. (Consumer Discretionary)			1,702,000				211,399
TK Group Holdings Ltd. (Industrials)			2,840,000				724,729

		Shares				Value
CHINA (INCLUDING HONG KONG and MACAU SAR) (cont'd.)
Wasion Group Holdings Ltd. (Technology Hardware & Equipment)			1,238,000			$	662,018
Wonderful Sky Financial Group Holdings Ltd. (Consumer Discretionary)			2,344,000				604,231
Xinjiang Goldwind Science & Technology Co. Ltd. (Class "H" Shares) (Capital Goods)			443,000				609,440
Yangtze Optical Fibre and Cable Joint Stock Ltd. Co. (Class "H" Shares) (Information Technology)			1,100,000				1,249,719
Yangzijiang Shipbuilding Holdings Ltd. (Capital Goods)			1,737,800				1,165,555
Zhejiang Expressway Co. Ltd. (Class "H" Shares) (Industrials)			976,000				923,325
							72,032,378
INDONESIA — 2.3%
PT Bank Mandiri Persero Tbk (Banking)			1,664,900				1,204,813
PT Bank Pan Indonesia Tbk* (Banking)			4,442,100				260,151
PT Nusa Raya Cipta Tbk (Industrials)			1,482,800				68,735
PT Panin Financial Tbk* (Insurance)			19,532,500				312,084
PT Perusahaan Gas Negara Persero Tbk (Utilities)			4,879,500				870,050
							2,715,833
MALAYSIA — 1.3%
Mah Sing Group Bhd (Real Estate)			1,722,625				629,528
Signature International Bhd (Consumer Discretionary)			1,460,600				356,396
UOA Development Bhd (Real Estate)			751,300				408,123
ViTrox Corp. Bhd (Semiconductors & Semiconductor Equipment)			192,800				180,294
							1,574,341
PHILIPPINES — 0.8%
Leisure & Resorts World Corp. (Consumer Discretionary)			1,593,200				261,138
Premium Leisure Corp. (Consumers Services)			10,364,000				260,408
Semirara Mining and Power Corp. (Energy)			181,540				484,445
							1,005,991
SINGAPORE — 5.3%
AIMS AMP Capital Industrial REIT (Real Estate Investment Trusts)			534,356				553,356
Asian Pay Television Trust (Consumer Discretionary)			961,300				379,117
CapitaLand Commercial Trust Ltd. (Real Estate Investment Trusts)			439,800				483,727
CapitaLand Retail China Trust (Real Estate Investment Trusts)			346,868				387,175
Croesus Retail Trust (Real Estate Investment Trusts)			1,327,087				803,692
DBS Group Holdings Ltd. (Banking)			176,986				2,086,828
Ezion Holdings Ltd.* (Energy)			1,285,100				501,972
Frasers Commercial Trust (Real Estate Investment Trusts)			686,600				651,103
Mapletree Greater China Commercial Trust (Real Estate Investment Trusts)			79,400				59,732
Mapletree Logistics Trust (Real Estate Investment Trusts)			460,600				342,929
							6,249,631
SOUTH KOREA — 9.3%
BGF retail Co. Ltd. (Consumer Staples)			3,523				655,964
Binggrae Co. Ltd. (Consumer Staples)			1,959				115,533
Dongbu Insurance Co. Ltd. (Insurance)			32,657				1,965,642
GS Retail Co. Ltd. (Consumer Staples)			40,964				1,947,870
Korea Electric Power Corp. (Utilities)			43,740				2,296,000
Korea Ratings Corp. (Diversified Financials)			2,615				93,535
Macquarie Korea Infrastructure Fund (Diversified Financials)			73,296				558,041
Maeil Dairy Industry Co. Ltd. (Consumer Staples)			13,932				530,150
Nong Woo Bio Co. Ltd. (Consumer Staples)			10,312				230,192
Sekonix Co. Ltd. (Technology Hardware & Equipment)			9,730				145,906
SK Hynix, Inc. (Semiconductors & Semiconductor Equipment)			66,566				1,894,268
SK Innovation Co. Ltd. (Energy)			4,332				533,764
							10,966,865
TAIWAN — 3.8%
Basso Industry Corp. (Consumer Discretionary)			91,000				259,187

	Shares					Value
TAIWAN (cont'd.)
Farglory Land Development Co. Ltd. (Real Estate)			338,000			$	391,306
Johnson Health Tech Co. Ltd. (Consumer Discretionary)			157,825				232,201
Largan Precision Co. Ltd. (Information Technology)			22,000				2,034,631
Mega Financial Holding Co. Ltd. (Banking)			1,032,410				780,886
Mercuries Life Insurance Co. Ltd. (Insurance)			434,653				195,001
Superalloy Industrial Co. Ltd. (Consumer Discretionary)			104,955				553,925
							4,447,137
THAILAND — 2.9%
AP Thailand PCL (Real Estate)			3,398,500				712,650
AP Thailand PCL, NVDR (Real Estate)			213,100				44,686
Bangchak Petroleum PCL (The) (Energy)			1,318,700				1,205,389
Hana Microelectronics PCL (Technology Hardware & Equipment)			623,100				525,198
Namyong Terminal PCL (Industrials)			75,400				29,218
SPCG PCL (Utilities)			451,100				262,204
Supalai PCL (Real Estate)			895,800				610,803
							3,390,148
Total common stocks   (cost $112,176,259)							102,382,324
PARTICIPATORY NOTES †— 3.3%
	Units
CHINA (INCLUDING HONG KONG and MACAU SAR)
Gree Electric Appliances, Inc. of Zhuhai (Class "A" Shares), expiring 08/18/16(a) (Consumer Durables & Apparel)			519,747				1,516,883
Gree Electric Appliances, Inc. of Zhuhai (Class "A" Shares), expiring 01/16/17(a) (Consumer Durables & Apparel)			26,700				77,924
Gree Electric Appliances, Inc. of Zhuhai (Class "A" Shares), expiring 03/10/17(a) (Consumer Durables & Apparel)			195,900				571,734
Midea Group Ltd. (Class "A" Shares), expiring 12/22/16 (Consumer Durables & Apparel)			263,400				945,825
Midea Group Ltd. (Class "A" Shares), expiring 03/08/17 (Consumer Durables & Apparel)			125,250				449,752
Midea Group Ltd. (Class "A" Shares), expiring 04/25/17 (Consumer Durables & Apparel)			111,000				398,582
Total participatory notes (cost $3,831,790)							3,960,700
PREFERENCE SHARES — 7.2%
	Shares
SOUTH KOREA
Amorepacific Corp. (Consumer Staples)			9,277				2,002,836
CJ CheilJedang Corp. (Consumer Staples)			2,002				360,889
LG Corp. (Industrials)			52,161				1,949,417
Samsung Electronics Co. Ltd. (Technology Hardware & Equipment)			1,192				1,229,652
Samsung Fire & Marine Insurance Co. Ltd. (Insurance)			19,417				2,944,551
Total preference shares   (cost $6,101,041)							8,487,345
WARRANTS(b)* — 0.1%
	Units
MALAYSIA — 0.1%
Mah Sing Group Bhd, expiring 02/21/20 (Real Estate)			423,637				13,661
Signature International Bhd, expiring 04/21/21 (Consumer Discretionary)			365,150				26,266
							39,927
SINGAPORE
Ezion Holdings Ltd., expiring 04/24/20 (Energy)			257,020				29,001
Total warrants   (cost $0)							68,928

		Shares				Value
Total long-term investments   (cost $122,109,090)						$	114,899,297
SHORT-TERM INVESTMENT 0.6%
MONEY MARKET MUTUAL FUND
JPMorgan Prime Money Market Fund/Premier   (cost $701,084)			701,084				701,084
Total Investments — 98.0%   (cost $122,810,174)(c)							115,600,381
Other assets in excess of liabilities 2.0%							2,358,087
NET ASSETS 100.0%						$	117,958,468

Tax Basis		$	123,271,024
Appreciation			6,967,664
Depreciation			(14,638,307	)
Net Unrealized Depreciation		$	(7,670,643	)

Notes to Schedule of Investments (unaudited)

Securities Valuation: The Fund holds securities and other assets that are fair valued at the close of each day (generally, 4:00 PM Eastern time) 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 either not readily available or not deemed representative of fair value. A record of the Valuation Committee’s actions is subject to the Board’s review, approval, and ratification at its next regularly-scheduled quarterly meeting.

Various inputs determine how the Fund’s 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 such as futures or options 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 where the security principally trades. 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 in the fair value hierarchy.

Participatory notes (P-notes) are generally valued based upon the value of a related underlying security that trades actively in the market and are classified as Level 2 in 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 ask prices, or at the last bid price in the absence of an ask price. These securities are classified as Level 2 in the fair value hierarchy.

Common stocks and preference shares traded on foreign securities exchanges 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 in the fair value hierarchy. The models generate an evaluated adjustment factor for each security, which can be applied to the local closing price to adjust it for post closing market movements. Utilizing that evaluated adjustment factor, the vendor provides an evaluated price to the extent that the valuation meets the established confidence level for each security. Such confidence level is a measure of the probability of a relationship between a given equity security and the factors used in the models. If the confidence level is not met or the vendor does not provide an evaluated 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 values on the date of valuation.

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 unobservable inputs are used when determining such valuations, the securities will be classified as Level 3 in the fair value hierarchy.

When determining the fair value 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 issuer’s 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 security’s 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.

 

Fair Value:

Other information regarding the Fund is available in the Fund’s most recent Report to Shareholders. This information is available on the Securities and Exchange Commission’s website (www.sec.gov).

---

Item 2. Controls and Procedures

 

Item 3. Exhibits

---

 

Date  August 11, 2016

 

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.