UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM N-Q
QUARTERLY SCHEDULE OF PORTFOLIO HOLDINGS OF REGISTERED
MANAGEMENT INVESTMENT COMPANY
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Investment Company Act file number: |
811-08050 | |
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Exact name of registrant as specified in charter: |
The Asia Tigers Fund, Inc. | |
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Address of principal executive offices: |
1735 Market Street, 32nd Floor Philadelphia, PA 19103 | |
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Name and address of agent for service: |
Ms. Andrea Melia Aberdeen Asset Management Inc. 1735 Market Street 32nd Floor Philadelphia, PA 19103 | |
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Registrant’s telephone number, including area code: |
866-839-5205 | |
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Date of fiscal year end: |
October 31 | |
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Date of reporting period: |
July 31, 2013 |
Item 1. Schedule of Investments—The Schedule of Investments for the three-month period ended July 31, 2013 is filed herewith.
| The Asia Tigers Fund, Inc. | ||||
| Portfolio of Investments | ||||
| As of July 31, 2013 (unaudited) | ||||
| No. of Shares |
Description |
Value | ||||
| EQUITY SECURITIES-98.1% |
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| CHINA-6.3% |
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| Oil, Gas, & Consumable Fuels-2.9% |
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| 1,202,000 |
PetroChina Co., Ltd. (a) | $ | 1,404,084 | |||
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| Wireless Telecommunication Services-3.4% |
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| 154,700 | China Mobile, Ltd. (a) | 1,645,692 | ||||
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| Total China (cost $2,021,127) | 3,049,776 | |||||
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| HONG KONG-27.2% |
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| Commercial Banks-5.2% |
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| 147,600 | HSBC Holdings PLC (a) | 1,670,327 | ||||
| 8,522 | HSBC Holdings PLC-ADR | 483,624 | ||||
| 41,926 | Wing Hang Bank, Ltd. (a) | 388,455 | ||||
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| 2,542,406 | ||||||
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| Food & Staples Retailing-1.9% |
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| 75,600 | Dairy Farm International Holdings, Ltd. | 899,640 | ||||
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| Industrial Conglomerates-4.9% |
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| 69,500 | Jardine Strategic Holdings, Ltd. (a) | 2,390,682 | ||||
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| Insurance-3.9% |
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| 400,000 | AIA Group, Ltd. (a) | 1,893,335 | ||||
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| Real Estate Management & Development-7.6% |
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| 420,000 | Hang Lung Properties (a) | 1,359,593 | ||||
| 1,012,500 | Swire Pacific, Ltd. B (a) | 2,354,254 | ||||
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| 3,713,847 | ||||||
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| Semiconductors & Semiconductor Equipment-2.2% |
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| 98,100 | ASM Pacific Technology, Ltd. (a) | 1,065,323 | ||||
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| Textiles, Apparel & Luxury Goods-1.5% |
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| 562,000 | Li & Fung, Ltd. (a) | 742,714 | ||||
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| Total Hong Kong (cost $11,579,702) | 13,247,947 | |||||
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| INDIA-14.0% |
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| Automobiles-1.4% |
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| 22,500 | Hero Motocorp, Ltd. (a) | 672,524 | ||||
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| Commercial Banks-1.8% |
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| 57,706 | ICICI Bank, Ltd. (a) | 862,529 | ||||
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| Construction Materials-2.4% |
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| 38,000 | Ultratech Cement, Ltd. (a) | 1,148,082 | ||||
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| IT Services-3.6% |
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| 35,781 | Infosys, Ltd. (a) | 1,757,539 | ||||
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| Pharmaceuticals-1.0% |
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| 13,000 | Glaxosmithkline Pharmaceuticals, Ltd. | 506,306 | ||||
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| Thrifts & Mortgage Finance-3.8% |
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| 142,000 | Housing Development Finance Corp., Ltd. (a) | 1,873,661 | ||||
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| Total India (cost $6,708,351) | 6,820,641 | |||||
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| INDONESIA-1.1% |
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| Household Products-1.1% |
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| 176,000 | PT Unilever Indonesia Tbk (a) (cost $379,968) | 543,464 | ||||
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| MALAYSIA-3.7% |
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| Commercial Banks-2.6% |
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| 248,700 | CIMB Group Holdings Bhd. (a) | 602,820 | ||||
| 120,200 | Public Bank Bhd. (Foreign) (a) | 639,071 | ||||
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| 1,241,891 | ||||||
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| Tobacco-1.1% |
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| 28,700 | British American Tobacco Bhd. (a) | 541,829 | ||||
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| Total Malaysia (cost $1,262,684) | 1,783,720 | |||||
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| PHILIPPINES-3.8% |
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| Commercial Banks-1.8% |
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| 417,000 | Bank of Philippine Islands (a) | 903,448 | ||||
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| Real Estate Management & Development-2.0% |
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| 1,380,000 | Ayala Land, Inc. (a) | 954,834 | ||||
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| Total Philippines (cost $1,216,874) | 1,858,282 | |||||
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| SINGAPORE-21.2% |
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| Aerospace & Defense-2.9% |
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| 425,000 | Singapore Technologies Engineering, Ltd. (a) | 1,431,187 | ||||
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| Airlines-1.8% |
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| 110,000 | Singapore Airlines, Ltd. (a) | 874,546 | ||||
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| Commercial Banks-8.2% |
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| 8,000 | DBS Group Holdings, Ltd. | 104,983 | ||||
| 351,000 | Oversea-Chinese Banking Corp., Ltd. (a) | 2,914,055 | ||||
| 57,000 | United Overseas Bank, Ltd. (a) | 961,542 | ||||
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| 3,980,580 | ||||||
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| Diversified Telecommunication Services-3.0% |
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| 476,000 | Singapore Telecommunications, Ltd. (a) | 1,469,859 | ||||
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| Industrial Conglomerates-2.0% |
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| 120,300 | Keppel Corp., Ltd. (a) | 979,224 | ||||
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| Real Estate Investment Trust-0.0% |
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| 24,060 | Keppel REIT (a) | 24,056 | ||||
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| Real Estate Management & Development-3.3% |
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| 192,000 | City Developments, Ltd. (a) | 1,604,524 | ||||
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| Total Singapore (cost $8,047,081) | 10,363,976 | |||||
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| SOUTH KOREA-5.8% |
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| Food & Staples Retailing-1.3% |
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| 3,260 | E-Mart Co., Ltd. (a) | 613,517 | ||||
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| Semiconductors & Semiconductor Equipment-4.5% |
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| 863 | Samsung Electronics Co., Ltd. (a) | 983,404 | ||||
| 1,700 | Samsung Electronics Co., Ltd. Preferred (a) | 1,237,047 | ||||
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| 2,220,451 | ||||||
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| Total South Korea (cost $2,131,087) | 2,833,968 | |||||
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| TAIWAN-6.4% |
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| Semiconductors & Semiconductor Equipment-4.1% |
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| 596,583 | Taiwan Semiconductor Manufacturing Co., Ltd. (a) | 2,028,793 | ||||
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| Wireless Telecommunication Services-2.3% |
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| 305,000 | Taiwan Mobile Co., Ltd. (a) | 1,107,974 | ||||
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| Total Taiwan (cost $1,762,337) | 3,136,767 | |||||
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| THAILAND-5.4% |
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| Construction Materials-3.1% |
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| 60,200 | Siam Cement Public Co., Ltd. (Foreign) (a) | 883,658 | ||||
| 43,000 | Siam Cement Public Co., Ltd. NVDR (Foreign) (a) | 628,837 | ||||
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| 1,512,495 | ||||||
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| Oil, Gas, & Consumable Fuels-2.3% |
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| 230,000 | PTT Exploration & Production PCL (Foreign) (a) | 1,146,507 | ||||
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| Total Thailand (cost $2,552,791) | 2,659,002 | |||||
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| UNITED KINGDOM-3.2% |
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| Commercial Banks-3.2% |
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| 67,500 | Standard Chartered PLC (a) (cost $1,513,768) | 1,565,587 | ||||
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| Total Common Stock-98.1% (cost $39,175,770) | 47,863,130 | |||||
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| Principal Amount |
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| SHORT-TERM INVESTMENT-1.2% |
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| REPURCHASE AGREEMENT-1.2% |
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| UNITED STATES-1.2% |
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| $554,221 | State Street Bank, 0.01% dated 07/31/13, due 08/01/13, proceeds at maturity $554,221 (Collateralized by $630,000 FNMA, 2.08%, due 11/02/22, Market Value $586,581)(cost $554,221) | 554,221 | ||||
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| Total Investments-99.3% (cost $39,729,991) | 48,417,351 | |||||
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| Cash and Other Assets in Excess of Liabilities—0.7% | 360,495 | |||||
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| Net Assets-100.0% | $ | 48,777,846 | ||||
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Footnotes and Abbreviations
| ADR | American Depository Receipts. |
| NVDR | Non-Voting Depository Receipts. |
| (a) | Security uses fair value as of July 31, 2013. Security is valued at fair value as determined in good faith by, or under the direction of, the Board of Directors (the “Board”) under procedures established by the Board. See Note 2(a) of the accompanying Notes to Financial Statements. |
Supplemental Information to the Portfolio of Investments
| (a) | Security Valuation: |
The Fund is required to value its securities at fair value, which is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between 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 the application, when appropriate, of 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 (“ETFS”) are valued at the market price of the security at the Valuation Time. A security using any of these pricing methodologies is determined as 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. There valuation factors are used when pricing the Fund’s portfolio holdings to estimate market movements between the time markets close and the time the Fund values such foreign securities. When the 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 the primary markets. These valuation factors are based on inputs such as depositary receipts, S&P 500 Index/S&P 500 Futures, Nikkei 225 Futures, Sector indices/ETFs, exchange rates, and historical opening and closing prices of each security. If the pricing service is unable to provide a valuation factor, or if the valuation factor falls below a predetermined threshold, the security is valued at the last sale price. A security that applies a fair valuation factor is determined as a Level 2 investment. When no fair valuation factor is applied, the security is determined as a Level 1 investment. Prior to October 31, 2012, the Fund used a different process for valuing equity securities. For more information, please refer to the Fund’s October 31, 2012 annual report
In the event that a security’s market quotation is not readily available or is deemed unreliable, the fair value of a security is determined by the Fund’s Pricing Committee, taking into account the relevant factors and surrounding circumstances. A security that has been fair valued 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 GAAP, the Fund discloses the fair value of its investments in a 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 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 participates would use in pricing the asset or liability developed based on the best information available in the circumstances. 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, prepayments speeds, credit risk, etc); or
• Level 3 – significant unobservable inputs (including the Fund’s own assumptions in determining the fair value of investments).
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 following is a summary of the inputs used as of July 31, 2013 in valuing the Fund’s investments carried at fair value.
The inputs or methodology used for valuing securities are not necessarily an indication of the risk associated with investing in those securities. Refer to the Portfolio of Investments for a detailed breakout of the security types:
| Investments, at value | Level 1 | Level 2 | Level 3 | Balance as of 7/31/2013 |
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| Commercial Banks |
$ | 483,624 | $ | 10,612,817 | $ | — | $ | 11,096,441 | ||||||||
| Food & Staples Retailing |
899,640 | 613,517 | — | 1,513,157 | ||||||||||||
| Pharmaceuticals |
506,306 | — | ||||||||||||||
| Other |
— | 35,253,532 | — | 35,253,532 | ||||||||||||
| Short-Term Investments |
— | 554,221 | 554,221 | |||||||||||||
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| Total |
$ | 1,889,570 | $ | 47,034,087 | $ | — | $ | 48,417,351 | ||||||||
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The Fund held no level 3 securities at July 31, 2013.
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 July 31, 2013, a security issued by Glaxosmithkline Pharmaceuticals, Ltd., in the amount of $506,306 was transferred from Level 2 to Level 1 because there was no fair value factor applied at July 31, 2013. During the period ended July 31, 2013, securities issued by Jardine Strategic Holdings, Limited, PTT Exploration & Production PCL, and Public Bank Bhd., in the amounts of $2,658,876, $1,280,867, and $639,071 respectively, transferred from Level 1 to Level 2 because there was a fair value factor applied at July 31, 2013. For the period ended July 31, 2013 there have been no significant changes to the fair valuation methodologies.
(b) Repurchase Agreements:
The Fund may enter into repurchase agreements, whereby securities are purchased from a counterparty under an agreement to resell them at a future date at the same price plus accrued interest. The Fund is exposed to credit risk on repurchase agreements to the extent that the counterparty defaults on its obligation to repurchase the securities, and the market value of such securities held by the Fund, including any accrued interest or dividends on such securities, is less than the face amount of the repurchase agreement plus accrued interest. The Fund held a repurchase agreement of $554,221 as of July 31, 2013.
(c) Foreign Currency Translation:
Foreign securities, currencies, and other assets and liabilities denominated in foreign currencies are translated into U.S. Dollars at the exchange rate of said currencies against the U.S. dollar, as of the Valuation Time, as provided by an independent pricing service approved by the Board.
The books and records of the Fund are maintained in U.S. Dollars. Foreign currency amounts are translated into U.S. Dollars on the following basis:
(i) market value of investment securities, other assets and liabilities at the valuation date rate of exchange; and
(ii) purchases and sales of investment securities, income and expenses at the relevant rates of exchange prevailing on the respective dates of such transactions.
The Fund does not isolate that portion of gains and losses on investments in equity securities which is due to changes in the foreign exchange rates from that which is due to changes in prices of equity securities. Accordingly, realized and unrealized foreign currency gains and losses with respect to such securities are included in the reported net realized and unrealized gains and losses on investment transactions balances.
The Fund reports certain foreign currency related transactions and foreign taxes withheld on security transactions as components of realized gains for financial reporting purposes, whereas such foreign currency related transactions are treated as ordinary income for U.S. federal income tax purposes.
Net unrealized currency gains or losses from valuing foreign currency denominated assets and liabilities at period end exchange rates are reflected as a component of net unrealized appreciation/depreciation in value of investments and foreign currency translation.
Net realized foreign exchange gains or losses represent foreign exchange gains and losses from transactions in foreign currencies and forward foreign currency contracts, exchange gains or losses realized between the trade date and settlement date on security transactions, and the difference between the amounts of interest and dividends recorded on the Fund’s books and the U.S. dollar equivalent of the amounts actually received.
(d) Security Transactions and Investment Income:
Securities transactions are recorded on the trade date. Realized and unrealized gains/(losses) from security and currency transactions are calculated on the identified cost basis. Dividend income is recorded on the ex-dividend date except for certain dividends on foreign securities, which are recorded as soon as the Fund is informed after the ex-dividend date. Interest income is recorded on an accrual basis. Expenses are recorded on an accrual basis.
(e) Distributions:
On an annual basis, the Fund intends to distribute its net realized capital gains, if any, by way of a final distribution to be declared during the calendar quarter ending December 31. Dividends and distributions to shareholders are recorded on the ex-dividend date.
Dividends and distributions to shareholders are determined in accordance with federal income tax regulations, which may differ from GAAP. These differences are primarily due to net operating losses, foreign currency losses, capital gains taxes and investments in passive foreign investments companies.
| (f) | Federal Income Taxes: |
At July 31, 2013, the identified cost for federal income tax purposes, as well as the gross unrealized appreciation from investments for those securities having an excess of value over cost, gross unrealized depreciation from investments for those securities having an excess of cost over value and the net unrealized appreciation from investments were $39,840,374 $9,598,847, $(1,021,870) and $8,576,977, respectively.
Other information regarding the Fund is available in the Fund’s most recent Report to Shareholders. This information is also available on the website of the Securities and Exchange Commission at www.sec.gov.
Item 2. Controls and Procedures
| (a) | The Registrant’s Principal Executive Officer and Principal Financial Officer concluded that the Registrant’s disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940 (17 CFR 270.30a-3(c))) were effective as of a date within 90 days prior to the filing date of this report (the “Evaluation Date”), based on their evaluation of the effectiveness of the Registrant’s disclosure controls and procedures as required by Rule 30a-3(b) under the Investment Company Act of 1940 (17 CFR 270.30a-3(b)) and Rule 13a-15(b) or 15d-15(b) under the Securities Exchange Act of 1934 (17 CFR 240.13a-15(b) or 240.15d-15(b)), as of the Evaluation Date. |
| (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.
| The Asia Tigers Fund, Inc. | ||
| By: | /s/ Alan Goodson | |
| Alan Goodson | ||
| Principal Executive Officer | ||
Date: September 26, 2013
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/ Alan Goodson | |
| Alan Goodson | ||
| Principal Executive Officer |
Date: September 26, 2013
| By: | /s/ Andrea Melia | |
| Andrea Melia | ||
| Principal Financial Officer |
Date: September 26, 2013