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:

 

811-05770

 

 

 

Exact name of registrant as specified in charter:

 

Aberdeen Chile Fund, Inc.

 

 

 

Address of principal executive offices:

 

1735 Market Street, 32nd Floor

Philadelphia, PA 19103

 

 

 

Name and address of agent for service:

 

Ms. Andrea Melia

Aberdeen Asset Management Inc.

1735 Market Street, 32nd Floor

Philadelphia, PA 19103

 

 

 

Registrant’s telephone number, including area code:

 

866-839-5205

 

 

 

Date of fiscal year end:

 

December 31

 

 

 

Date of reporting period:

 

March 31, 2014

 


 


 

Item 1. Schedule of Investments

 

The schedule of investments for the three-month period ended March 31, 2014 is filed herewith.

 



 

Portfolio of Investments (unaudited)

 

As of March 31, 2014

 

Shares

 

Description

 

Value
(US$)

 

LONG-TERM INVESTMENTS—98.7%

 

 

 

COMMON STOCKS—93.9%

 

 

 

AIRLINES—2.0%

 

 

 

125,500

 

Latam Airlines Group SA

 

$

1,903,870

 

 

 

 

 

BANKS—16.6%

 

 

 

33,666,948

 

Banco de Chile

 

4,248,466

 

34,967

 

Banco de Credito e Inversiones

 

2,039,771

 

157,216,987

 

Banco Santander Chile

 

9,231,615

 

 

 

 

 

15,519,852

 

BEVERAGES—17.4%

 

 

 

387,283

 

Cia Cervecerias Unidas SA

 

4,343,360

 

1,343,011

 

Coca-Cola Embonor SA, Class A(a)(b)

 

2,687,859

 

1,276,161

 

Embotelladora Andina SA, Class A

 

3,700,198

 

2,673,000

 

Vina Concha y Toro SA

 

5,508,074

 

 

 

 

 

16,239,491

 

ELECTRIC UTILITIES—9.2%

 

 

 

27,656,000

 

Enersis SA

 

8,639,112

 

 

 

 

 

 

 

FOOD & STAPLES RETAILING—3.2%

 

 

 

902,000

 

Cencosud SA

 

2,992,000

 

 

 

 

 

 

 

INDEPENDENT POWER AND RENEWABLE ELECTRICITY PRODUCERS—2.7%

 

 

 

1,767,000

 

Empresa Nacional de Electricidad SA

 

2,558,465

 

 

 

 

 

 

 

INFORMATION TECHNOLOGY SERVICES—4.8%

 

 

 

1,857,000

 

Sonda SA

 

4,503,870

 

 

 

 

 

 

 

MULTILINE RETAIL—10.0%

 

 

 

1,055,083

 

S.A.C.I. Falabella

 

9,325,712

 

 

 

 

 

 

 

OIL, GAS & CONSUMABLE FUELS—9.0%

 

 

 

638,889

 

Empresas COPEC SA

 

8,376,771

 

 

 

 

 

 

 

PAPER & FOREST PRODUCTS—8.3%

 

 

 

3,362,130

 

Empresas CMPC SA

 

7,731,290

 

 

 

 

 

 

 

REAL ESTATE MANAGEMENT & DEVELOPMENT—4.8%

 

 

 

2,333,000

 

Parque Arauco SA

 

4,454,344

 

 

 

 

 

 

 

TEXTILES, APPAREL & LUXURY GOODS—0.9%

 

 

 

184,000

 

Forus SA

 

822,032

 

 

 

 

 

 

 

WATER UTILITIES—2.4%

 

 

 

1,368,500

 

Inversiones Aguas Metropolitanas SA

 

2,221,044

 

 

 

 

 

 

 

WIRELESS TELECOMMUNICATION SERVICES—2.6%

 

 

 

203,000

 

ENTEL Chile SA

 

2,486,530

 

 

 

Total Common Stocks

 

87,774,383

 

 

 

 

 

 

 

PREFERRED STOCKS—4.8%

 

 

 

CHEMICALS—4.8%

 

 

 

98,650

 

Sociedad Quimica y Minera de Chile SA, ADR, Preferred Shares

 

3,131,151

 

43,500

 

Sociedad Quimica y Minera de Chile SA, Class B, Preferred Shares

 

1,378,673

 

 

 

 

 

4,509,824

 

 

 

Total Preferred Stocks

 

4,509,824

 

 

 

Total Long-Term Investments—98.7% (cost $63,706,079)

 

92,284,207

 

 

See Notes to Portfolio of Investments.

 



 

Portfolio of Investments (unaudited) (concluded)

 

As of March 31, 2014

 

Par
Amount

 

Description

 

Value
(US$)

 

SHORT-TERM INVESTMENT—1.0%

 

 

 

$

872,000

 

JPMorgan Chase & Co., overnight deposit, 0.03%, 04/01/2014

 

$

872,000

 

 

 

Total Short-Term Investment—1.0% (cost $872,000)

 

872,000

 

 

 

Total Investments—99.7% (cost $64,578,079) (c)

 

93,156,207

 

 

 

Other Assets in Excess of Liabilities—0.3%

 

322,803

 

 

 

Net Assets—100.0%

 

$

 93,479,010

 

 


(a)                   Illiquid security.

(b)                   Fair Valued Security. Fair Values are determined pursuant to procedures approved by the Board of Directors. See Note (a) of the accompanying notes to portfolio of investments.

(c)                    See notes to portfolio of investments for tax unrealized appreciation/depreciation of securities.

 

ADR                          American Depositary Receipt

 

See Notes to Portfolio of Investments.

 



 

Notes to Portfolio of Investments (unaudited)

 

March 31, 2014

 

Summary of Significant Accounting Policies

 

(a) Security Valuation:

 

The Fund values its securities at current market value or fair value consistent with regulatory requirements. “Fair value” is defined in the Fund’s valuation policies and procedures as the price that could be received to sell an asset or paid to transfer a liability in an orderly transaction between willing market participants at the measurement date.

 

Equity securities that are traded on an exchange are valued at the last quoted sale price on the principal exchange on which the security is traded at the “Valuation Time”, subject to application, when appropriate, of the fair valuation factors described in the paragraph below. The Valuation Time is as of the close of regular trading on the New York Stock Exchange (usually 4:00 p.m. Eastern Time). In the absence of a sale price, the security is valued at the mean of the bid/ask quoted at the close on the principal exchange on which the security is traded. Securities traded on NASDAQ are valued at the NASDAQ official closing price. Closed-end funds and exchange-traded funds are valued at the market price of the security at the Valuation Time. A security using any of these pricing methodologies is determined to be a Level 1 investment.

 

Foreign equity securities that are traded on foreign exchanges that close prior to the Valuation Time are valued by applying valuation factors to the last sale price or the mean price as noted above. Valuation factors are provided by an independent pricing service provider. These valuation factors are used when pricing the Fund’s portfolio holdings to estimate market movements between the time foreign markets close and the time the Fund values such foreign securities. These valuation factors are based on inputs such as depositary receipts, indices, futures, sector indices/ETFs, exchange rates, and local exchange opening and closing prices of each security. When prices with the application of valuation factors are utilized, the value assigned to the foreign securities may not be the same as quoted or published prices of the securities on their primary markets. A security that applies a valuation factor is determined to be a Level 2 investment because the exchange-traded price has been adjusted. Valuation factors are not utilized if the independent pricing service provider is unable to provide a valuation factor or if the valuation factor falls below a predetermined threshold; in such case, the security is determined to be a Level 1 investment.

 

In the event that a security’s market quotations are not readily available or are deemed unreliable (for reasons other than because the foreign exchange on which they trade closed before the Valuation Time), the security is valued at fair value as determined by the Fund’s Pricing Committee, taking into account the relevant factors and surrounding circumstances using valuation policies and procedures approved by the Board. A security that has been fair valued by the Pricing Committee may be classified as Level 2 or 3 depending on the nature of the inputs.

 

In accordance with the authoritative guidance on fair value measurements and disclosures under accounting principles generally accepted in the United States of America (“GAAP”), the Fund discloses the fair value of its investments using a three-level hierarchy that classifies the inputs to valuation techniques used to measure the fair value. The hierarchy assigns Level 1 measurements to valuations based upon unadjusted quoted prices in active markets for identical assets, Level 2 measurements to valuations based upon other significant observable inputs, including adjusted quoted prices in active markets for identical assets, and Level 3 measurements to valuations based upon unobservable inputs that are significant to the valuation. Observable inputs are inputs that reflect the assumptions market participants would use in pricing the asset or liability, which are based on market data obtained from sources independent of the reporting entity. Unobservable inputs are inputs that reflect the reporting entity’s own assumptions about the assumptions market participants would use in pricing the asset or liability developed based on the best information available in the circumstances. A financial instrument’s level within the fair value hierarchy is based upon the lowest level of any input that is significant to the fair value measurement. The three-tier hierarchy of inputs is summarized below:

 

Level 1—quoted prices in active markets for identical investments;

Level 2—other significant observable inputs (including quoted prices for similar securities, interest rates, prepayment speeds, and credit risk); or

Level 3—significant unobservable inputs (including the Fund’s own assumptions in determining the fair value of investments).

 

See Notes to Portfolio of Investments.

 



 

Notes to Portfolio of Investments (unaudited) (concluded)

 

March 31, 2014

 

The following is a summary of the inputs used as of March 31, 2014 in valuing the Fund’s investments at fair value. The inputs or methodologies used for valuing securities are not necessarily an indication of the risk associated with investing in those securities. Please refer to the Portfolio of Investments for a detailed breakout of the security types:

 

Investments

 

Level 1

 

Level 2

 

Level 3

 

Total

 

Long-Term Investments

 

 

 

 

 

 

 

 

 

Beverages

 

$

13,551,632

 

$

2,687,859

 

$

 

$

16,239,491

 

Other

 

76,044,716

 

 

 

76,044,716

 

Short-Term Investment

 

 

872,000

 

 

872,000

 

Total Investments

 

$

89,596,348

 

$

3,559,859

 

$

 

$

93,156,207

 

 

For movements between the levels within the fair value hierarchy, the Fund has adopted a policy of recognizing transfers at the end of each period. During the period ended March 31, 2014, Coca-Cola Embonor SA, Class A, with a value of $2,687,859, transferred from Level 1 to Level 2 because the security was fair valued by the Fund’s Pricing Committee on March 31, 2014. For the period ended March 31, 2014, there have been no significant changes to the fair valuation methodologies.

 

(b) Federal Income Taxes:

 

The U.S. federal income tax basis of the Fund’s investments and the net unrealized appreciation as of March 31, 2014 were as follows:

 

Cost

 

Appreciation

 

Depreciation

 

Net
Unrealized
Appreciation

 

$

64,578,079

 

$

33,982,519

 

$

(5,404,391

)

$

28,578,128

 

 



 

Item 2. Controls and Procedures

 

a)             The registrant’s principal executive and principal financial officers, or persons performing similar functions, have concluded that the registrant’s disclosure controls and procedures (as defined in Rule 30a-3(c) under the Act (17 CFR 270.30a-3(c))) are effective, as of a date within 90 days of the filing date of the report that includes the disclosure required by this paragraph, based on the evaluation of these controls and procedures required by Rule 30a-3(b) under the Act (17 CFR 270.30a3(b)) and Rule 13a-15(b) or 15d-15(b) under the Exchange Act (17 CFR 240.13a-15(b) or 240.15d15(b)).

 

b)             There were no changes in the Registrant’s internal control over financial reporting (as defined in Rule 30a-3(d) under the Investment Company Act of 1940 (17 CFR 270.30a-3(d))) that occurred during the Registrant’s last fiscal quarter that has materially affected, or is reasonably likely to materially affect, the Registrant’s internal control over financial reporting.

 

Item 3. Exhibits

 

a)             Certification of Principal Executive Officer and Principal Financial Officer of the Registrant as required by Rule 30a-2(a) under the Investment Company Act of 1940 (17 CFR 270.30a-2(a)) is attached hereto as Exhibit 99.302CERT.

 



 

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.

 

Aberdeen Chile Fund, Inc.

 

 

By:

/s/ Christian Pittard

 

 

 

Christian Pittard,

 

 

 

Principal Executive Officer of

 

 

 

Aberdeen Chile Fund, Inc.

 

 

 

 

 

Date: May 20, 2014

 

 

 

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/ Christian Pittard

 

 

 

Christian Pittard,

 

 

 

Principal Executive Officer of

 

 

 

Aberdeen Chile Fund, Inc.

 

 

 

 

 

Date: May 20, 2014

 

 

 

 

 

 

 

 

 

 

By:

/s/ Andrea Melia

 

 

 

Andrea Melia,

 

 

 

Principal Financial Officer of

 

 

 

Aberdeen Chile Fund, Inc.

 

 

 

 

 

Date: May 20, 2014