APB Asia Pacific Fund (The)

 

 

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
Registrant’s telephone number, including area code:		973-367-7521
Date of fiscal year end:		03/31/2014
Date of reporting period:		12/31/2013

 

 

 

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Item 1. Schedule of Investments

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THE ASIA PACIFIC FUND, INC.

Portfolio of Investments

as of December 31, 2013

(Unaudited)

 

Shares		Description		Value
LONG-TERM INVESTMENTS—98.3%
COMMON STOCKS—84.7%
CHINA (INCLUDING HONG KONG SAR)—49.6%
3,304,000		Anhui Expressway Co. Ltd. (Class “H” Shares)		$	1,832,171
		(Industrials)
1,306,500		Asia Cement China Holdings Corp.			823,902
		(Materials)
13,548,000		Bank of China Ltd. (Class “H” Shares)			6,237,360
		(Banking)
2,804,000		Chaowei Power Holdings Ltd.			1,478,968
		(Consumer Discretionary)
27,000		Cheung Kong Holdings Ltd.			426,189
		(Real Estate-Developers)
1,378,000		China BlueChemical Ltd. (Class “H” Shares)			861,883
		(Materials)
5,281,000		China Construction Bank Corp. (Class “H” Shares)			3,984,093
		(Banking)
696,000		China Lilang Ltd.			429,037
		(Consumer Discretionary)
234,500		China Mobile Ltd.			2,431,399
		(Telecommunication Services)
2,880,000		China Petroleum & Chemical Corp. (Class “H” Shares)			2,351,005
		(Energy)
2,492,000		China Power International Development Ltd.			886,981
		(Utilities)
110,000		China Resources Land Ltd.			272,649
		(Real Estate-Developers)
912,000		China Resources Power Holdings Co. Ltd.			2,161,712
		(Utilities)
713,000		China Shenhua Energy Co. Ltd. (Class “H” Shares)			2,248,153
		(Energy)
731,852		China Vanke Co. Ltd. (Class “B” Shares)			1,142,000
		(Real Estate-Developers)
613,000		CNOOC Ltd.			1,139,943
		(Energy)
2,048,000		Far East Consortium International Ltd.			768,565
		(Real Estate-Developers)
954,000		FIH Mobile Ltd.*			513,029
		(Telecommunication Services)
4,112,000		Hopefluent Group Holdings Ltd.			1,601,465
		(Real Estate-Developers)
222,800		HSBC Holdings PLC			2,417,835
		(Banking)
5,677,000		Industrial & Commercial Bank of China Ltd. (Class “H” Shares)			3,836,256
		(Banking)

 

10,300		Jiangling Motors Corp. Ltd. (Class “B” Shares)			38,388
		(Consumer Discretionary)
609,889		Luthai Textile Co. Ltd. (Class “B” Shares)			851,798
		(Consumer Discretionary)
602,000		New World Department Store China Ltd.			338,486
		(Consumer Discretionary)
180,000		Power Assets Holdings Ltd.			1,431,077
		(Utilities)
4,003,000		Prosperity REIT			1,166,679
		(Real Estate Investment Trusts)
165,000		Shanghai Industrial Holdings Ltd.			603,246
		(Industrials)
1,053,500		Shimao Property Holdings Ltd.			2,421,027
		(Real Estate-Developers)
3,917,000		Sino-Ocean Land Holdings Ltd.			2,571,158
		(Real Estate-Developers)

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916,000		Sinopec Engineering Group Co. Ltd. (Class “H” Shares)			1,370,285
		(Industrials)
2,310,000		Sinopec Shanghai Petrochemical Co. Ltd. (Class “H” Shares)			664,315
		(Materials)
4,832,000		Skyworth Digital Holdings Ltd.			2,660,800
		(Consumer Discretionary)
2,922,000		Springland International Holdings Ltd.			1,503,524
		(Consumer Discretionary)
662,000		Truly International Holdings Ltd.			356,001
		(Technology Hardware & Equipment)
2,840,000		Welling Holding Ltd.			915,621
		(Consumer Discretionary)
412,769		Yantai Changyu Pioneer Wine Co. Ltd. (Class “B” Shares)			1,373,359
		(Consumer Staples)
1,490,000		Yuexiu Property Co. Ltd.			367,009
		(Real Estate-Developers)
3,687,000		Yuexiu Real Estate Investment Trust			1,797,307
		(Real Estate Investment Trusts)
1,583,400		Zhengzhou Coal Mining Machinery Group Co. Ltd. (Class “H” Shares)			1,090,409
		(Industrials)
711,800		Zoomlion Heavy Industry Science And Technology Co. Ltd. (Class “H” Shares)			664,590
		(Industrials)
					60,029,674
INDIA—0.8%
160,812		Tata Motors Ltd.			978,573
		(Consumer Discretionary)
INDONESIA—1.9%
1,334,000		PT Bank Rakyat Indonesia Persero Tbk			794,700
		(Banking)
8,834,000		PT Telekomunikasi Indonesia Persero Tbk			1,560,649
		(Telecommunication Services)
					2,355,349
MALAYSIA—1.0%
403,800		NTPM Holdings Bhd			92,459
		(Consumer Staples)
132		United Overseas Australia Ltd.			66
		(Real Estate-Developers)
1,961,500		UOA Development Bhd			1,161,749
		(Real Estate-Developers)
					1,254,274
SINGAPORE—6.9%
506,000		AIMS AMP Capital Industrial REIT			573,382
		(Real Estate Investment Trusts)
2,420,000		Asian Pay Television Trust			1,419,074
		(Consumer Discretionary)
98,000		CapitaLand Ltd.			235,303
		(Real Estate-Developers)
2,200,000		China Merchants Holdings Pacific Ltd.			1,612,584
		(Industrials)
137,000		DBS Group Holdings Ltd.			1,856,413
		(Banking)
584,000		Frasers Commercial Trust			587,725
		(Real Estate Investment Trusts)
17,000		Great Eastern Holdings Ltd.			240,057
		(Insurance)
38,500		Jardine Strategic Holdings Ltd.			1,232,000
		(Industrials)
2,126,000		Nam Cheong Ltd.			530,679
		(Industrials)
					8,287,217

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SOUTH KOREA—15.6%
759		Alticast Corp.*			6,631
		(Software & Services)
194,660		DGB Financial Group, Inc.			3,043,436
		(Banking)
30		Dongbu Insurance Co. Ltd.			1,598
		(Insurance)
48,900		KB Financial Group, Inc.			1,957,668
		(Banking)
73,306		Kia Motors Corp.			3,896,780
		(Consumer Discretionary)
31,672		LG Corp.			1,920,697
		(Consumer Discretionary)
1,810		Samsung Electronics Co. Ltd.			2,353,077
		(Semiconductors & Semiconductor Equipment)
4,070		SBI Mortgage Co. Ltd.			44,736
		(Banking)
50,520		Shinhan Financial Group Co. Ltd.			2,264,269
		(Banking)
5,598		SK Innovation Co. Ltd.			750,573
		(Energy)
12,107		SK Telecom Co. Ltd.			2,638,565
		(Telecommunication Services)
					18,878,030
SRI LANKA—0.8%
727,048		Sampath Bank PLC			955,501
		(Banking)
TAIWAN—6.6%
98,000		Chicony Electronics Co. Ltd.			246,286
		(Technology Hardware & Equipment)
2,196,000		Compal Electronics, Inc.			1,683,648
		(Technology Hardware & Equipment)
252,000		Lumax International Corp. Ltd.			606,251
		(Technology Hardware & Equipment)
150,000		Phison Electronics Corp.			958,780
		(Semiconductors & Semiconductor Equipment)
1,384,000		Primax Electronics Ltd.			1,260,778
		(Technology Hardware & Equipment)
461,000		Syncmold Enterprise Corp.			770,306
		(Industrials)
349,000		Taiwan Semiconductor Manufacturing Co. Ltd.			1,235,409
		(Semiconductors & Semiconductor Equipment)
416,000		UDE Corp.			1,271,582
		(Technology Hardware & Equipment)
					8,033,040
THAILAND—1.5%
91,400		Bangkok Bank PCL			495,106
		(Banking)
1,521,800		Krung Thai Bank PCL			764,142
		(Banking)
314,400		Thai Oil PCL			538,192
		(Energy)
					1,797,440
		Total common stocks (cost $98,574,791)			102,569,098
PREFERRED STOCKS—13.6%
SOUTH KOREA
2,910		Amorepacific Corp.			1,160,857
		(Consumer Staples)
21,310		Daelim Industrial Co. Ltd.			615,867
		(Industrials)
22,698		Hyundai Motor Co.			2,462,615
		(Consumer Discretionary)
36,594		Hyundai Motor Co. (PRFC)			4,334,344
		(Consumer Discretionary)
13,110		LG Corp.			443,480
		(Industrials)
4,898		LG Household & Health Care Ltd.			1,058,174
		(Consumer Staples)

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2,731		Samsung Electronics Co. Ltd. (PRFC)			2,621,408
		(Semiconductors & Semiconductor Equipment)
27,887		Samsung Fire & Marine Insurance Co. Ltd.			3,765,478
		(Insurance)
		Total preferred stocks (cost $14,929,682)			16,462,223
		Total long-term investments (cost $113,504,473)			119,031,321
SHORT-TERM INVESTMENT—0.1%
MONEY MARKET MUTUAL FUND
		JPMorgan Prime Money Market Fund/Premier (cost $135,942)			135,942
		Total Investments—98.4% (cost $113,640,415)			119,167,263
		Other assets in excess of liabilities—1.6%			1,930,189
		Net Assets—100.0%		$	121,097,452

 

The following abbreviations are used in the Portfolio descriptions:

PRFC—

Preference Shares

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		$	113,785,931
Appreciation			8,137,689
Depreciation			(2,756,357	)
Net Unrealized Appreciation		$	5,381,332

 

The book basis may differ from tax basis due to certain tax related adjustments.

 

Various inputs are used in determining the value of the Fund’s investments. These inputs are summarized in the three broad levels listed below.

 

Level 1—quoted prices generally in active markets for identical securities.

Level 2—other significant observable inputs including, but not limited to, quoted prices for similar securities, interest rates and yield curves, prepayment speeds, foreign currency exchange rates, and amortized cost.

Level 3—significant 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, 2013 in valuing such portfolio securities:

 

		Level 1				Level 2				Level 3
Investments in Securities
Common Stocks
China (including Hong Kong SAR)		$	60,029,674			$	—			$	—
India			978,573				—				—
Indonesia			2,355,349				—				—
Malaysia			1,254,208				66				—
Singapore			8,287,217				—				—
South Korea			18,878,030				—				—
Sri Lanka			955,501				—				—
Taiwan			8,033,040				—				—
Thailand			495,106				1,302,334				—
Preferred Stocks
South Korea			16,462,223				—				—
Money Market Mutual Fund			135,942				—				—
Total		$	117,864,863			$	1,302,400			$	—

 

The industry classification of investments and other assets in excess of liabilities shown as a percentage of net assets as December 31, 2013 was as follows:

 

Banking			23.7	%
Consumer Discretionary			20.1
Real Estate-Developers			9.1
Industrials			8.9
Semiconductors & Semiconductor Equipment			5.9
Telecommunications Services			5.9
Energy			5.8
Technology Hardware & Equipment			4.5
Utilities			3.7
Real Estate Investment Trusts			3.4
Insurance			3.3
Consumer Staples			2.1
Materials			1.9
Money Market Fund			0.1
			98.4
Other assets in excess of liabilities			1.6
			100.0	%

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Notes to Portfolio 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 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 Portfolio of Investments.

 

Common stocks including preferred 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.

 

Common stocks 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 as the adjustment factors are observable and considered to be significant to the valuation.

 

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.

 

Securities and other assets that cannot be priced using 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 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 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.

 

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).

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Item 2. Controls and Procedures

 

(a)

It is the conclusion of the registrant’s principal executive officer and principal financial officer that the effectiveness of the registrant’s 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 Commission’s rules and forms and that the information required to be disclosed by the registrant has been accumulated and communicated to the registrant’s 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 registrant’s 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.

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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 26, 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 (Signature and Title)*		/s/ Raymond Tam
		Raymond Tam
		President and Principal Executive Officer

Date    February 26, 2014

 

By (Signature and Title)*		/s/ M. Sadiq Peshimam
		M. Sadiq Peshimam
		Treasurer and Principal Financial Officer

Date    February 26, 2014

 

*	Print the name and title of each signing officer under his or her signature.