UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM N-CSR
CERTIFIED SHAREHOLDER REPORT OF REGISTERED MANAGEMENT INVESTMENT COMPANIES
Investment Company Act file number: | 811-08050 | |
Exact name of registrant as specified in charter: | The Asia Tigers 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 | ||
Registrants telephone number, including area code: | 1-866-839-5205 | |
Date of fiscal year end: | October 31 | |
Date of reporting period: | October 31, 2014 |
Item 1 Reports to Stockholders.
The Report to Shareholders is attached herewith.
Letter to Shareholders (unaudited)
1 | The MSCI AC (All Country) Asia ex Japan Index is a free float-adjusted market capitalization weighted index that is designed to measure the equity market performance of Asia, excluding Japan. The MSCI AC Asia ex Japan Index consists of the following 10 developed and emerging market country indices: China, Hong Kong, India, Indonesia, Korea, Malaysia, Philippines, Singapore, Taiwan, and Thailand. Indexes are unmanaged and have been provided for comparison purposes only. No fees or expenses are reflected. You cannot invest directly in an index. |
The Asia Tigers Fund, Inc.
1
Letter to Shareholders (unaudited) (concluded)
All amounts are U.S. dollars unless otherwise stated.
The Asia Tigers Fund, Inc.
2
Report of the Investment Manager (unaudited)
1 | The MSCI India Index is designed to measure the performance of the large- and mid-cap segments of the Indian market. With 73 constituents, the index covers approximately 85% of the Indian equity universe. Indexes are unmanaged and have been provided for comparison purposes only. No fees or expenses are reflected. You cannot invest directly in an index. |
2 | The MSCI Golden Dragon Index is a free float-adjusted market capitalization index that is designed to measure equity market performance in the China region. The MSCI Golden Dragon Index captures the equity market performance of large and mid-cap China securities (H shares, B shares, Red-Chips and P-Chips) and non-domestic China securities listed in Hong Kong and Taiwan. |
The Asia Tigers Fund, Inc.
3
Report of the Investment Manager (unaudited) (concluded)
The Asia Tigers Fund, Inc.
4
Portfolio Summary (unaudited)
The following table summarizes the composition of the Funds portfolio, in Standard & Poors Global Industry Classification Standard (GICS) sectors, expressed as a percentage of net assets. The GICS structure consists of 10 sectors, 24 industry groups, 67 industries and 156 subindustries. An industry classification standard sector can include more than one industry group. As of October 31, 2014, the Fund had less than 25% of its assets invested in any industry group. The sectors, as classified by GICS sectors, are comprised of several industries.
As of October 31, 2014, the Fund held 98.2% of its net assets in equities, 1.7% in a short-term investment and 0.1% in other assets in excess of liabilities.
Asset Allocation by Sector
Top Sectors | Percentage of Net Assets | |||
Financials |
44.8% | |||
Information Technology |
13.1% | |||
Industrials |
10.4% | |||
Telecommunication Services |
8.7% | |||
Materials |
6.1% | |||
Consumer Staples |
5.3% | |||
Energy |
5.0% | |||
Consumer Discretionary |
4.8% | |||
Other |
1.8% | |||
100.0% |
The following table summarizes the composition of the Funds portfolio, in Geographic classification, expressed as a percentage of net assets as of October 31, 2014.
Geographic Asset Breakdown
Top Countries | Percentage of Net Assets | |||
Hong Kong |
26.2% | |||
Singapore |
20.5% | |||
India |
15.0% | |||
China |
7.0% | |||
Taiwan |
6.2% | |||
Republic of South Korea |
5.4% | |||
Thailand |
5.0% | |||
Philippines |
4.2% | |||
Malaysia |
3.6% | |||
United States |
3.2% | |||
Other |
3.7% | |||
100.0% |
The Asia Tigers Fund, Inc.
5
Top Ten Equity Holdings (unaudited)
The following were the Funds top ten holdings as of October 31, 2014:
Name of Security | Percentage of Net Assets | |||
Swire Pacific Ltd., Class B |
5.1% | |||
Oversea-Chinese Banking Corp. Ltd. |
5.0% | |||
Jardine Strategic Holdings Ltd. |
4.9% | |||
Housing Development Finance Corp. Ltd. |
4.4% | |||
Taiwan Semiconductor Manufacturing Co. Ltd. |
4.1% | |||
AIA Group Ltd. |
4.1% | |||
HSBC Holdings PLC |
3.9% | |||
China Mobile Ltd. |
3.6% | |||
Infosys Ltd. |
3.5% | |||
PetroChina Co. Ltd., H Shares |
3.4% |
Total Investment Returns (unaudited)
The following table summarizes the average annual Fund performance compared to the Funds benchmark of MSCI AC Asia Ex Japan Index for the 1-year, 3-year, 5-year and 10-year periods as of October 31, 2014.
1 Year | 3 Years | 5 Years | 10 Years | |||||||||||||
Net Asset Value (NAV) |
3.3% | 5.3% | 5.1% | 10.5% | ||||||||||||
Market Value |
1.9% | 4.2% | 4.0% | 10.2% | ||||||||||||
MSCI AC Asia ex Japan Index |
6.0% | 7.8% | 7.7% | 11.2% |
Aberdeen Asset Management Asia Limited has entered into a written contract with the Fund to waive fees or limit expenses without which performance would be lower. This contract may not be terminated before December 18, 2014. Returns represent past performance. See Note 3 and Note 12 in the Notes to Financial Statements for further information. Total investment return at net asset value is based on changes in the net asset value of Fund shares and assumes reinvestment of dividends and distributions, if any, at market prices pursuant to the Funds dividend reinvestment program. Total investment return at market value is based on changes in the market price at which the Funds shares traded on the NYSE during the period and assumes reinvestment of dividends and distributions, if any, at market prices pursuant to the Funds dividend reinvestment program. Because the Funds shares trade in the stock market based on investor demand, the Fund may trade at a price higher or lower than its NAV. Therefore, returns are calculated based on both market price and NAV. Past performance is no guarantee of future results. The performance information provided does not reflect the deduction of taxes that a shareholder would pay on distributions received from the Fund. The current performance of the Fund may be lower or higher than the figures shown. The Funds yield, return, market price and NAV will fluctuate. Performance information current to the most recent month-end is available at www.aberdeengrr.com by calling 866-839-5205.
The net operating expense ratio excluding fee waivers based on the fiscal year ended October 31, 2014 was 2.80%. The net expense ratio after fee waivers and/or expense reimbursements based on the fiscal year ended October 31, 2014 was 2.33%.
The Asia Tigers Fund, Inc.
6
Portfolio of Investments
As of October 31, 2014
Shares | Description | Value (US$) |
||||||
|
LONG-TERM INVESTMENTS98.2% |
| ||||||
|
COMMON STOCKS95.2% |
| ||||||
|
CHINA7.0% |
| ||||||
|
OIL, GAS & CONSUMABLE FUELS3.4% |
| ||||||
1,284,000 | PetroChina Co. Ltd., H Shares (a) |
$ | 1,609,151 | |||||
|
WIRELESS TELECOMMUNICATION SERVICES3.6% |
| ||||||
139,200 | China Mobile Ltd. (a) |
1,735,587 | ||||||
Total China |
3,344,738 | |||||||
|
HONG KONG26.2% |
| ||||||
|
BANKS4.8% |
| ||||||
181,839 | HSBC Holdings PLC (a) |
1,860,686 | ||||||
8,766 | HSBC Holdings PLC, ADR |
447,241 | ||||||
2,307,927 | ||||||||
|
FOOD & STAPLES RETAILING1.6% |
| ||||||
81,900 | Dairy Farm International Holdings Ltd. |
786,240 | ||||||
|
INDUSTRIAL CONGLOMERATES4.9% |
| ||||||
65,500 | Jardine Strategic Holdings Ltd. (a) |
2,334,857 | ||||||
|
INSURANCE4.1% |
| ||||||
346,000 | AIA Group Ltd. (a) |
1,930,827 | ||||||
|
REAL ESTATE MANAGEMENT & DEVELOPMENT8.0% |
| ||||||
442,000 | Hang Lung Properties Ltd. (a) |
1,380,246 | ||||||
992,500 | Swire Pacific Ltd., Class B (a) |
2,408,990 | ||||||
3,789,236 | ||||||||
|
SEMICONDUCTORS & SEMICONDUCTOR EQUIPMENT1.0% |
| ||||||
43,900 | ASM Pacific Technology Ltd. (a) |
483,771 | ||||||
|
TEXTILES, APPAREL & LUXURY GOODS1.8% |
| ||||||
580,000 | Global Brands Group Holding Ltd. (b) |
127,889 | ||||||
580,000 | Li & Fung Ltd. (a) |
707,616 | ||||||
835,505 | ||||||||
Total Hong Kong |
12,468,363 | |||||||
|
INDIA15.0% |
| ||||||
|
AUTOMOBILES1.6% |
| ||||||
14,944 | Hero MotoCorp Ltd. (a) |
745,987 | ||||||
|
BANKS2.2% |
| ||||||
39,706 | ICICI Bank Ltd. (a) |
1,053,552 | ||||||
|
CONSTRUCTION MATERIALS2.7% |
| ||||||
31,500 | UltraTech Cement Ltd. (a) |
1,306,639 | ||||||
|
INFORMATION TECHNOLOGY SERVICES3.5% |
| ||||||
25,281 | Infosys Ltd. (a) |
1,677,030 | ||||||
|
THRIFTS & MORTGAGE FINANCE4.4% |
| ||||||
116,508 | Housing Development Finance Corp. Ltd. (a) |
2,090,232 |
See Notes to Financial Statements.
The Asia Tigers Fund, Inc.
7
Portfolio of Investments (continued)
As of October 31, 2014
Shares | Description | Value (US$) |
||||||
|
LONG-TERM INVESTMENTS (continued) |
| ||||||
|
COMMON STOCKS (continued) |
| ||||||
|
INDIA (continued) |
| ||||||
|
TOBACCO0.6% |
| ||||||
46,000 | ITC Ltd. (a) |
$ | 265,615 | |||||
Total India |
7,139,055 | |||||||
|
INDONESIA0.9% |
| ||||||
|
HOUSEHOLD PRODUCTS0.9% |
| ||||||
176,000 | Unilever Indonesia Tbk PT (a) |
443,127 | ||||||
|
MALAYSIA3.6% |
| ||||||
|
BANKS2.3% |
| ||||||
321,308 | CIMB Group Holdings Bhd (a) |
634,468 | ||||||
85,200 | Public Bank Bhd |
480,234 | ||||||
1,114,702 | ||||||||
|
TOBACCO1.3% |
| ||||||
28,700 | British American Tobacco Bhd (a) |
606,827 | ||||||
Total Malaysia |
1,721,529 | |||||||
|
PHILIPPINES4.2% |
| ||||||
|
BANKS2.0% |
| ||||||
460,428 | Bank of Philippine Islands (a) |
975,644 | ||||||
|
REAL ESTATE MANAGEMENT & DEVELOPMENT2.2% |
| ||||||
1,380,000 | Ayala Land, Inc. (a) |
1,031,168 | ||||||
Total Philippines |
2,006,812 | |||||||
|
REPUBLIC OF SOUTH KOREA2.4% |
| ||||||
|
FOOD & STAPLES RETAILING0.9% |
| ||||||
2,180 | E-Mart Co. Ltd. (a) |
404,497 | ||||||
|
TECHNOLOGY HARDWARE, STORAGE & PERIPHERALS1.5% |
| ||||||
613 | Samsung Electronics Co. Ltd. (a) |
714,845 | ||||||
Total Republic of South Korea |
1,119,342 | |||||||
|
SINGAPORE20.5% |
| ||||||
|
AEROSPACE & DEFENSE3.0% |
| ||||||
485,000 | Singapore Technologies Engineering Ltd. (a) |
1,415,980 | ||||||
|
BANKS8.8% |
| ||||||
39,289 | DBS Group Holdings Ltd. (a) |
565,189 | ||||||
312,350 | Oversea-Chinese Banking Corp. Ltd. (a) |
2,406,065 | ||||||
68,715 | United Overseas Bank Ltd. (a) |
1,231,075 | ||||||
4,202,329 | ||||||||
|
DIVERSIFIED TELECOMMUNICATION SERVICES2.9% |
| ||||||
476,000 | Singapore Telecommunications Ltd. (a) |
1,401,000 | ||||||
|
INDUSTRIAL CONGLOMERATES2.5% |
| ||||||
162,300 | Keppel Corp. Ltd. (a) |
1,190,181 | ||||||
|
REAL ESTATE INVESTMENT TRUST (REIT)0.1% |
| ||||||
33,684 | Keppel REIT Management Ltd. (a) |
32,011 |
See Notes to Financial Statements.
The Asia Tigers Fund, Inc.
8
Portfolio of Investments (concluded)
As of October 31, 2014
Shares | Description | Value (US$) |
||||||
|
LONG-TERM INVESTMENTS (continued) |
| ||||||
|
COMMON STOCKS (continued) |
| ||||||
|
SINGAPORE (continued) |
| ||||||
|
REAL ESTATE MANAGEMENT & DEVELOPMENT3.2% |
| ||||||
206,000 | City Developments Ltd. (a) |
$ | 1,516,144 | |||||
Total Singapore |
9,757,645 | |||||||
|
TAIWAN6.2% |
| ||||||
|
SEMICONDUCTORS & SEMICONDUCTOR EQUIPMENT4.1% |
| ||||||
447,583 | Taiwan Semiconductor Manufacturing Co. Ltd. (a) |
1,940,214 | ||||||
|
WIRELESS TELECOMMUNICATION SERVICES2.1% |
| ||||||
305,000 | Taiwan Mobile Co. Ltd. |
989,710 | ||||||
Total Taiwan |
2,929,924 | |||||||
|
THAILAND5.0% |
| ||||||
|
CONSTRUCTION MATERIALS3.4% |
| ||||||
115,200 | Siam Cement PCL, Foreign Shares (a) |
1,600,121 | ||||||
|
OIL, GAS & CONSUMABLE FUELS1.6% |
| ||||||
172,000 | PTT Exploration & Production PCL, Foreign Shares (a) |
773,295 | ||||||
Total Thailand |
2,373,416 | |||||||
|
UNITED KINGDOM2.7% |
| ||||||
|
BANKS2.7% |
|||||||
86,814 | Standard Chartered PLC (a) |
1,306,781 | ||||||
|
UNITED STATES1.5% |
| ||||||
|
HOTELS, RESTAURANTS & LEISURE1.5% |
| ||||||
10,000 | Yum! Brands, Inc. |
718,300 | ||||||
Total Common Stocks |
45,329,032 | |||||||
|
PREFERRED STOCKS3.0% |
| ||||||
|
REPUBLIC OF SOUTH KOREA3.0% |
| ||||||
1,555 | Samsung Electronics Co. Ltd., Preferred Shares (a) |
1,435,363 | ||||||
Total Preferred Stocks |
1,435,363 | |||||||
Total Long-Term Investments98.2% (cost $36,952,444) |
46,764,395 | |||||||
Par Amount |
||||||||
|
SHORT-TERM INVESTMENT1.7% |
| ||||||
$826,000 | Repurchase Agreement, Fixed Income Clearing Corp., 0.00% dated 10/31/2014, due 11/03/2014 repurchase price $826,000 collateralized by U.S.Treasury Note, maturing 10/31/2021; total market value of $842,809 |
826,000 | ||||||
Total Short-Term Investment1.7% (cost $826,000) |
826,000 | |||||||
Total Investments99.9% (cost $37,778,444) (c) |
47,590,395 | |||||||
Other Assets in Excess of Liabilities0.1% |
45,509 | |||||||
Net Assets100.0% |
$ | 47,635,904 |
(a) | Fair Valued Security. Fair Values are determined pursuant to procedures approved by the Funds Board of Directors. See Note 2(a) of the accompanying Notes to Financial Statements. |
(b) | Non-income producing security. |
(c) | See Notes to Financial Statements for tax unrealized appreciation/depreciation of securities. |
ADRAmerican Depositary Receipt
REITReal Estate Investment Trust
See Notes to Financial Statements.
The Asia Tigers Fund, Inc.
9
Statement of Assets and Liabilities
As of October 31, 2014
Assets |
||||
Investments, at value (cost $36,952,444) |
$ | 46,764,395 | ||
Repurchase agreement, at value (cost $826,000) |
826,000 | |||
Foreign currency, at value (cost $86,099) |
85,991 | |||
Cash |
273 | |||
Receivable for investments sold |
50,057 | |||
Dividends receivable |
42,247 | |||
Prepaid expenses |
66,446 | |||
Total assets |
47,835,409 | |||
Liabilities |
||||
Investment management fees payable (Note 3) |
13,356 | |||
Director fees payable |
8,000 | |||
Administration fees payable (Note 3) |
7,947 | |||
Investor relations fees payable (Note 3) |
4,583 | |||
Accrued expenses |
165,619 | |||
Total liabilities |
199,505 | |||
Net Assets |
$ | 47,635,904 | ||
Net Assets Consist of: |
||||
Capital stock, $0.001 par value (Note 5) |
$ | 3,538 | ||
Paid-in capital |
36,262,942 | |||
Accumulated net investment income |
164,622 | |||
Accumulated net realized gain from investments and foreign currency transactions |
1,392,998 | |||
Net unrealized appreciation on investments and translation of assets and liabilities denominated in foreign currencies |
9,811,804 | |||
Net Assets |
$ | 47,635,904 | ||
Net asset value per share based on 3,538,214 shares issued and outstanding |
$ | 13.46 |
See Notes to Financial Statements.
The Asia Tigers Fund, Inc.
10
Statement of Operations
For the Year Ended October 31, 2014
Net Investment Income |
||||
Income |
||||
Dividends (net of foreign withholding taxes of $61,586) |
$ | 1,272,374 | ||
1,272,374 | ||||
Expenses |
||||
Investment management fee (Note 3) |
473,805 | |||
Administration fee (Note 3) |
94,761 | |||
Reports to stockholders and proxy solicitation |
190,628 | |||
Legal fees and expenses |
178,331 | |||
Independent auditors fees and expenses |
103,390 | |||
Insurance expense |
62,323 | |||
Investor relations expenses (Note 3) |
51,410 | |||
Directors fees and expenses |
50,250 | |||
Custodians fees and expenses |
39,385 | |||
Transfer agents fees and expenses |
30,380 | |||
Miscellaneous |
50,259 | |||
Total operating expenses before reimbursed/waived expenses |
1,324,922 | |||
Less: Expenses waived (Note 3) |
(219,883 | ) | ||
Net expenses |
1,105,039 | |||
Net Investment Income |
167,335 | |||
Realized and Unrealized Gains/(Losses) on Investments and Foreign Currency Related Transactions |
||||
Net realized gain/(loss) from: |
||||
Investment transactions (including $0 capital gains tax) |
1,503,388 | |||
Foreign currency transactions |
(2,170 | ) | ||
1,501,218 | ||||
Net change in unrealized appreciation/(depreciation) on: |
||||
Investments (including $22,290 change in deferred capital gains tax) |
(558,623 | ) | ||
Foreign currency translations |
(1,503 | ) | ||
(560,126 | ) | |||
Net realized and unrealized gain from investments and foreign currency transaction |
941,092 | |||
Net Increase in Net Assets Resulting from Operations |
$ | 1,108,427 |
See Notes to Financial Statements.
The Asia Tigers Fund, Inc.
11
Statements of Changes in Net Assets
For the Year Ended October 31, 2014 |
For the Year Ended October 31, 2013 |
|||||||
Increase/(Decrease) in Net Assets |
||||||||
Operations: |
||||||||
Net investment income |
$ | 167,335 | $ | 250,845 | ||||
Net realized gain from investments and foreign currency transactions |
1,501,218 | 1,761,028 | ||||||
Net change in unrealized appreciation/depreciation on investments and translation of assets and liabilities denominated in foreign currencies |
(560,126 | ) | 907,958 | |||||
Net increase in net assets resulting from operations |
1,108,427 | 2,919,831 | ||||||
Distributions to Stockholders from: |
||||||||
Net investment income |
(280,941 | ) | (72,233 | ) | ||||
Net realized gains |
(807,582 | ) | (9,417,088 | ) | ||||
Net decrease in net assets from distributions |
(1,088,523 | ) | (9,489,321 | ) | ||||
Capital Share Transactions: |
||||||||
Issuance of 0 and 593,370 shares, respectively, due to stock distribution (Note 5) |
| 7,589,202 | ||||||
Cost of shares repurchased under repurchase offer (189,467 and 378,143 shares, net of repurchase fee of $45,661 and $100,343, including expenses of $45,710 and $84,913, respectively) |
(2,286,915 | ) | (5,001,676 | ) | ||||
Repurchase of shares under open market repurchase policy (61,651 and 0, respectively) |
(745,191 | ) | | |||||
Change in net assets from capital share transactions |
(3,032,106 | ) | 2,587,526 | |||||
Change in net assets resulting from operations |
(3,012,202 | ) | (3,981,964 | ) | ||||
Net Assets: |
||||||||
Beginning of year |
50,648,106 | 54,630,070 | ||||||
End of year (including accumulated net investment income of $164,622 and $227,438, respectively) |
$ | 47,635,904 | $ | 50,648,106 |
See Notes to Financial Statements.
The Asia Tigers Fund, Inc.
12
Financial Highlights
For the Fiscal Years Ended October 31, | ||||||||||||||||||||
2014 | 2013 | 2012 | 2011 | 2010 | ||||||||||||||||
Per Share Operating Performance(a): |
||||||||||||||||||||
Net asset value, beginning of year | $13.37 | $15.28 | $17.74 | $22.47 | $19.10 | |||||||||||||||
Net investment income/(loss) | 0.05 | 0.07 | 0.08 | | (0.01 | ) | ||||||||||||||
Net realized and unrealized gain/(loss) on investments and foreign currency related transactions(b) | 0.30 | 0.80 | 0.87 | (1.56 | ) | 3.92 | ||||||||||||||
Total from investment operations | 0.35 | 0.87 | 0.95 | (1.56 | ) | 3.91 | ||||||||||||||
Dividends and distributions to shareholders: | ||||||||||||||||||||
Net investment income | (0.08 | ) | (0.02 | ) | | (0.05 | ) | | ||||||||||||
Net realized gains | (0.21 | ) | (2.64 | ) | (3.16 | ) | (3.12 | ) | (0.34 | ) | ||||||||||
Tax return of capital | | | | | (0.18 | ) | ||||||||||||||
Total dividends and distributions to shareholders | (0.29 | ) | (2.66 | ) | (3.16 | ) | (3.17 | ) | (0.52 | ) | ||||||||||
Capital Share Transactions: | ||||||||||||||||||||
Impact due to capital shares issued from stock distribution (Note 5) | | (0.13 | ) | (0.24 | ) | | | |||||||||||||
Impact due to capital shares tendered or repurchased (Note 6) | 0.01 | (0.01 | ) | (0.01 | ) | | (0.02 | ) | ||||||||||||
Impact due to open market repurchase policy (Note 7) | 0.02 | | | | | |||||||||||||||
Total capital share transactions | 0.03 | (0.14 | ) | (0.25 | ) | | (0.02 | ) | ||||||||||||
Net asset value, end of year | $13.46 | $13.37 | $15.28 | $17.74 | $22.47 | |||||||||||||||
Market value, end of year | $12.00 | $12.08 | $13.93 | $16.35 | $21.80 | |||||||||||||||
Total Investment Return Based on(c): | ||||||||||||||||||||
Market value | 1.88% | 4.72% | 5.88% | (13.43% | ) | 24.27% | ||||||||||||||
Net asset value | 3.25% | 5.66% | 7.04% | (8.87% | ) | 20.72% | ||||||||||||||
Ratio/Supplementary Data: | ||||||||||||||||||||
Net assets, end of year (000 omitted) | $47,636 | $50,648 | $54,630 | $57,139 | $79,916 | |||||||||||||||
Average net assets (000 omitted) | $47,380 | $51,801 | $52,504 | $67,947 | $74,534 | |||||||||||||||
Net operating expenses | 2.33% | (d) | 2.06% | 2.11% | 2.36% | 2.24% | ||||||||||||||
Net operating expenses, excluding fee waivers | 2.80% | 2.53% | 2.82% | 2.58% | 2.24% | |||||||||||||||
Net investment income/(loss) | 0.35% | 0.48% | 0.54% | 0.02% | (0.04% | ) | ||||||||||||||
Portfolio turnover | 10.06% | 1.24% | 83.20% | 41.69% | 51.73% |
(a) | Based on average shares outstanding. |
(b) | Net of deferred foreign withholding taxes of $0.00, $0.01, $0.01, $0.01 and $0.07 per share for the years ended October 31, 2014, October 31, 2013, October 31, 2012, October 31, 2011, and October 31, 2010, respectively. |
(c) | Total investment return based on market value is calculated assuming that shares of the Funds common stock were purchased at the closing market price as of the beginning of the period, dividends, capital gains and other distributions were reinvested as provided for in the Funds dividend reinvestment plan and then sold at the closing market price per share on the last day of the period. The computation does not reflect any sales commission investors may incur in purchasing or selling shares of the Fund. The total investment return based on the net asset value is similarly computed except that the Funds net asset value is substituted for the closing market value. |
(d) | For the 2014 fiscal year, the Funds net expense ratio was affected by higher non-routine expenses that fell outside of the Expense Limitation Agreement (see Note 3 of the Notes to Financial Statements). |
Amounts listed as are $0 or round to $0.
See Notes to Financial Statements.
The Asia Tigers Fund, Inc.
13
Notes to Financial Statements
October 31, 2014
The Asia Tigers Fund, Inc.
14
Notes to Financial Statements (continued)
October 31, 2014
The following is a summary of the inputs used as of October 31, 2014 in valuing the Funds 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. Refer to the Portfolio of Investments for a detailed breakout of the security types:
Investments, at Value | Level 1 | Level 2 | Level 3 | Total | ||||||||||||
Long-Term Investments |
||||||||||||||||
Banks |
$ | 927,475 | $ | 10,033,460 | $ | | $ | 10,960,935 | ||||||||
Food & Staples Retailing |
786,240 | 404,497 | | 1,190,737 | ||||||||||||
Hotels, Restaurants & Leisure |
718,300 | | | 718,300 | ||||||||||||
Textiles, Apparel & Luxury Goods |
127,889 | 707,616 | | 835,505 | ||||||||||||
Wireless Telecommunication Services |
989,710 | 1,735,587 | | 2,725,297 | ||||||||||||
Other |
| 30,333,621 | | 30,333,621 | ||||||||||||
Short-Term Investment |
| 826,000 | | 826,000 | ||||||||||||
Total |
$ | 3,549,614 | $ | 44,040,781 | $ | | $ | 47,590,395 |
Amounts | listed as are $0 or round to $0. |
The Asia Tigers Fund, Inc.
15
Notes to Financial Statements (continued)
October 31, 2014
The Asia Tigers Fund, Inc.
16
Notes to Financial Statements (continued)
October 31, 2014
The Asia Tigers Fund, Inc.
17
Notes to Financial Statements (continued)
October 31, 2014
During the year ended October 31, 2014, the results of the periodic repurchase offer were as follows:
Repurchase Offer #31 | ||
Commencement Date |
December 27, 2013 | |
Expiration Date |
January 17, 2014 | |
Repurchase Offer Date |
January 24, 2014 | |
% of Issued and Outstanding Shares of Common Stock |
5% | |
Shares Validly Tendered |
1,274,284 | |
Final Odd Lot Shares* |
N/A | |
Final Pro-ration Shares |
189,467 | |
% of Shares Accepted |
14.87% | |
Shares Accepted for Tender |
189,467 | |
Net Asset Value as of Repurchase Offer Date ($) |
12.07 | |
Repurchase Fee per Share ($) |
0.241 | |
Repurchase Offer Price ($) |
11.829 | |
Repurchase Fee ($) |
45,661 | |
Expenses ($) |
45,710 | |
Total Cost ($) |
2,286,915 |
During the year ended October 31, 2013, the results of the periodic repurchase offers were as follows:
Repurchase Offer #29 | Repurchase Offer #30 | |||
Commencement Date |
December 21, 2012 |
June 21, 2013 | ||
Expiration Date |
January 11, 2013 |
July 12, 2013 | ||
Repurchase Offer Date |
January 18, 2013 |
July 19, 2013 | ||
% of Issued and Outstanding Shares of Common Stock |
5% |
5% | ||
Shares Validly Tendered |
822,211 |
905,304 | ||
Final Odd Lot Shares* |
91,461 |
N/A | ||
Final Pro-ration Non-Odd Lot Shares |
87,243.5 |
199,439 | ||
% of Non-Odd Lot Shares Accepted |
11.9389% |
22.03% | ||
Shares Accepted for Tender |
178,704.5 |
199,439 | ||
Net Asset Value as of Repurchase Offer Date ($) |
13.60 |
12.97 | ||
Repurchase Fee per Share ($) |
0.2720 |
0.2594 | ||
Repurchase Offer Price ($) |
13.3280 |
12.7106 | ||
Repurchase Fee ($) |
48,608 |
51,735 | ||
Expenses ($) |
40,900 |
44,013 | ||
Total Cost ($) |
2,422,674 |
2,579,002 |
* | Effective May 13, 2013, the Fund discontinued the practice of accepting all shares tendered by stockholders who own, beneficially or of record, an aggregate of not more than 99 shares before prorating shares tendered by others. |
The Asia Tigers Fund, Inc.
18
Notes to Financial Statements (continued)
October 31, 2014
10. Tax Information
The U.S. federal income tax basis of the Funds investments and the net unrealized appreciation as of October 31, 2014 were as follows:
Tax Basis of Investments |
Appreciation | Depreciation | Net Unrealized Appreciation |
|||||||||||
$37,889,140 | $ | 11,042,540 | $ | (1,341,285 | ) | $ | 9,701,255 |
Income and capital gains distributions are determined in accordance with federal income tax regulations, which may differ from GAAP. The tax character of distributions paid during the fiscal years ended October 31, 2014 and October 31, 2013 was as follows:
October 31, 2014 | October 31, 2013 | |||||||
Distributions paid from: |
||||||||
Ordinary Income |
$ | 280,941 | $ | 72,233 | ||||
Net long-term capital gains |
807,582 | 9,417,088 | ||||||
Total tax character of distributions |
$ | 1,088,523 | $ | 9,489,321 |
As of October 31, 2014, the components of accumulated earnings on a tax basis were as follows:
Undistributed ordinary income net |
$ | 164,921 | ||
Undistributed long-term capital gains net |
1,503,395 | |||
Total undistributed earnings |
$ | 1,668,316 | ||
Unrealized appreciation/(depreciation) |
9,701,108 | |||
Total accumulated earnings/(losses) net |
$ | 11,369,424 |
The Asia Tigers Fund, Inc.
19
Notes to Financial Statements (concluded)
October 31, 2014
The Asia Tigers Fund, Inc.
20
Report of Independent Registered Public Accounting Firm
To the Board of Directors and Shareholders of
The Asia Tigers Fund, Inc.
In our opinion, the accompanying statement of assets and liabilities, including the portfolio of investments, and the related statements of operations and of changes in net assets and the financial highlights present fairly, in all material respects, the financial position of The Asia Tigers Fund, Inc. (the Fund) at October 31, 2014, the results of its operations for the year then ended, the changes in its net assets for each of the two years in the period then ended and the financial highlights for each of the five years in the period then ended, in conformity with accounting principles generally accepted in the United States of America. These financial statements and financial highlights (hereafter referred to as financial statements) are the responsibility of the Funds management. Our responsibility is to express an opinion on these financial statements based on our audits. We conducted our audits of these financial statements in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements, assessing the accounting principles used and significant estimates made by management, and evaluating the overall financial statement presentation. We believe that our audits, which included confirmation of securities at October 31, 2014 by correspondence with the custodian, provide a reasonable basis for our opinion.
Philadelphia, Pennsylvania
December 23, 2014
The Asia Tigers Fund, Inc.
21
Federal Tax Information: Dividends and Distributions (unaudited)
The following information is provided with respect to the distributions paid by The Asia Tigers Fund, Inc. during the fiscal year ended October 31, 2014:
Payable Date |
Total Cash Distribution |
Long-Term Capital Gain |
Tax Return of Capital |
Net Ordinary Dividend |
Foreign Taxes Paid(1) |
Gross Ordinary Dividend |
Qualified Dividends(2) |
Foreign Source Income |
||||||||||||||||||||||||
1/17/14 | 0.287260 | 0.213120 | 0.000000 | 0.074140 | 0.011760 | 0.085900 | 0.085900 | 0.085417 |
(1) | The foreign taxes paid represent taxes incurred by the Fund on interest received from foreign sources. Foreign taxes paid may be included in taxable income with an offsetting deduction from gross income or may be taken as a credit for taxes paid to foreign governments. You should consult your tax advisor regarding the appropriate treatment of foreign taxes paid. |
(2) | The Fund hereby designates the amount indicated above or the maximum amount allowable by law. |
Supplemental Information (unaudited)
The Asia Tigers Fund, Inc.
22
Supplemental Information (unaudited) (continued)
The Asia Tigers Fund, Inc.
23
Supplemental Information (unaudited) (concluded)
The Asia Tigers Fund, Inc.
24
Dividend Reinvestment and Cash Purchase Plan (unaudited)
The Asia Tigers Fund, Inc.
25
Dividend Reinvestment and Cash Purchase Plan (unaudited) (concluded)
The Asia Tigers Fund, Inc.
26
Management of the Fund (unaudited)
The names of the Directors and Officers of the Fund, their addresses, ages, and principal occupations during the past five years are provided in the tables below. Directors that are deemed interested persons (as that term is defined in Section 2(a)(19) of the Investment Company Act of 1940, as amended) of the Fund or the Funds investment adviser are included in the table below under the heading Interested Directors. Directors who are not interested persons, as described above, are referred to in the table below under the heading Independent Directors.
Board of Directors Information
Name, Address, and Year of Birth |
Position(s) Held With the Fund |
Term of Office and Length of Time Served |
Principal Occupation(s) During Past Five Years |
Number of Funds in Fund Complex* Overseen by Director |
Other Held by Director | |||||
Independent Directors |
||||||||||
Jeswald W. Salacuse c/o Aberdeen Asset Management Inc. 1735 Market Street, 32nd Floor Philadelphia, PA 19103
Year of Birth: 1938 |
Chairman of the Board of Directors, Nominating Committee, Valuation Committee and Audit Committee |
Since 1993; Current term ends at the 2015 Annual Meeting |
Mr. Salacuse has been the Henry J. Braker Professor of Commercial Law at The Fletcher School of Law & Diplomacy, Tufts University, since 1986. He has also served as International Arbitrator, Arbitration Tribunal, ICSID, World Bank since 2004. | 2 | Director of 30 registered investment companies advised by Legg Mason Partners Fund Advisor, LLC and its affiliates. | |||||
Lawrence K. Becker c/o Aberdeen Asset Management Inc. 1735 Market Street, 32nd Floor Philadelphia, PA 19103
Year of Birth: 1955 |
Director, Audit Committee, Valuation Committee and Nominating Committee Member | Since 2003; Current term ends at the 2016 Annual Meeting |
Mr. Becker has served as Private Investor of Real Estate Investment Management since July 2003. He was Treasurer of the France Growth Fund, Inc. from 2004 to 2008 and Vice President and Controller/Treasurer of National Financial Partners from 2000 to 2003. | 2 | Director of one registered investment company advised by Advantage Advisers L.L.C. or its affiliates. | |||||
Leslie H. Gelb c/o Aberdeen Asset Management Inc. 1735 Market Street, 32nd Floor, Philadelphia, PA 19103
Year of Birth: 1937 |
Director, Audit Committee and Nominating Committee Member | Since 1994; Current term ends at the 2017 Annual Meeting |
Mr. Gelb has been the President Emeritus of The Council on Foreign Relations since 2003. Previously, he was a Columnist, Deputy Editorial Page Editor and Editor, Op-Ed Page, of The New York Times, as well as a senior official in the departments of State and Defense. | 2 | Director of 31 Registered Investment Companies advised by Legg Mason Partners Fund Advisor, LLC and its affiliates. | |||||
Luis Rubio c/o Aberdeen Asset Management Inc. 1735 Market Street, 32nd Floor Philadelphia, PA 19103
Year of Birth: 1955 |
Director, Audit Committee and Nominating Committee Member | Since 1999; Current term ends at the 2017 Annual Meeting |
Mr. Rubio has been the Chairman of Centro de Investigacion para el Desarrollo, A.C. (Center of Research for Development) since 2000. He is also a frequent contributor of op-ed pieces to The Wall Street Journal. | 2 | Director of one registered investment company advised by Advantage Advisers L.L.C. or its affiliates. | |||||
Interested Directors |
||||||||||
Martin J. Gilbert** Aberdeen Asset Management PLC 10 Queens Terrace Aberdeen, Scotland AB10 1YG
Year of Birth: 1955 |
Director | Since 2012; Current term ends at the 2015 Annual Meeting |
Mr. Gilbert is a founding director and shareholder, and Chief Executive of Aberdeen Asset Management PLC, the holding company of the fund management group that was established in 1983. Director (1991-present), Aberdeen Asset Management Asia Limited; and Director (2000- present), Aberdeen Asset Management Limited. He has been a Director since 1995, and has been President since September 2006 of Aberdeen Asset Management Inc. | 28 | Member of Board of British Sky Broadcasting Group PLC. |
* | Aberdeen Asia-Pacific Income Fund, Inc., Aberdeen Global Income Fund, Inc., Aberdeen Australia Equity Fund, Inc., Aberdeen Chile Fund, Inc., Aberdeen Israel Fund, Inc., Aberdeen Indonesia Fund, Inc., Aberdeen Latin America Equity Fund, Inc., Aberdeen Emerging Markets |
The Asia Tigers Fund, Inc.
27
Management of the Fund (unaudited) (continued)
Smaller Company Opportunities Fund, Inc., Aberdeen Singapore Fund, Inc., Aberdeen Japan Equity Fund, Inc. The Asia Tigers Fund, Inc., The India Fund, Inc., Aberdeen Greater China Fund, Inc., Aberdeen Funds, Aberdeen Investment Funds, and Aberdeen Global Select Opportunities Funds, Inc. have a common investment manager and/or investment adviser, or an investment adviser that is affiliated with the Investment Manager and Investment Adviser, and may thus be deemed to be part of the same Fund Complex. |
** | Mr. Gilbert is deemed to be an interested person because of his affiliation with the Funds Investment Manager. Mr. Gilbert serves as a Director of several Funds in the Fund Complex. |
Information Regarding Officers who are not Directors
Name, Address and Year of Birth |
Position(s) Held With the Fund |
Term of Office and Length of Time Served |
Principal Occupation(s) During Past Five Years | |||
Officers |
||||||
Alan Goodson* c/o Aberdeen Asset Management Inc. Attn: US Legal 1735 Market Street, 32nd Floor, Philadelphia, PA 19103
Year of Birth: 1974 |
President | Since 2011 | Currently, Head of Product US, overseeing Product Management, Product Development and Investor Services for Aberdeens registered and unregistered investment companies in the US and Canada. Mr. Goodson is Vice President of Aberdeen Asset Management Inc. and joined Aberdeen in 2000. | |||
Jeffrey Cotton* c/o Aberdeen Asset Management Inc. Attn: US Legal 1735 Market Street, 32nd Floor, Philadelphia, PA 19103
Year of Birth: 1977 |
Chief Compliance Officer, Vice President Compliance | Since 2011 | Currently, Vice President and Head of Compliance Americas for Aberdeen Asset Management Inc. Mr. Cotton joined Aberdeen in 2010. Prior to joining Aberdeen, Mr. Cotton was a Senior Compliance Officer at Old Mutual Asset Management (2009-2010) supporting its affiliated investment advisers and mutual fund platform. Mr. Cotton was also a VP, Senior Compliance Manager at Bank of America/Columbia Management (2006-2009). | |||
Lucia Sitar* c/o Aberdeen Asset Management Inc. Attn: US Legal 1735 Market Street, 32nd Floor, Philadelphia, PA 19103
Year of Birth: 1971 |
Chief Legal Officer, Vice President | Since 2012 | Currently, Managing U.S. Counsel. Ms. Sitar joined AAMI in July 2007. Prior to that, Ms. Sitar was an associate attorney in the Investment Management Group of Stradley Ronon Stevens & Young LLP (law firm) (2000 - 2007). | |||
Sofia Rosala* c/o Aberdeen Asset Management Inc. Attn: US Legal 1735 Market Street, 32nd Floor, Philadelphia, PA 19103
Year of Birth: 1974 |
Vice President Deputy Chief Compliance Officer | Since 2013 | Currently, U.S. Counsel / Deputy Fund CCO. She joined Aberdeen in 2012. Prior to joining Aberdeen, she worked as an Associate for Morgan, Lewis and Bockius and as Corporate Counsel and Vice President at SEI Investments Company. | |||
Andrea Melia* c/o Aberdeen Asset Management Inc. Attn: US Legal 1735 Market Street, 32nd Floor, Philadelphia, PA 19103
Year of Birth: 1969 |
Treasurer | Since 2011 | Currently, Vice President and Head of Fund Administration US for AAMI (since 2009). Prior to joining Aberdeen, Ms. Melia was Director of Fund Administration and accounting oversight for Princeton Administrators LLC, a division of BlackRock Inc. and had worked with Princeton Administrators since 1992. | |||
Megan Kennedy* c/o Aberdeen Asset Management Inc. Attn: US Legal 1735 Market Street, 32nd Floor, Philadelphia, PA 19103
Year of Birth: 1974 |
Secretary, Vice President |
Since 2011 | Currently, Head of Product Management for Aberdeen Asset Management Inc. Ms. Kennedy joined Aberdeen Asset Management Inc. in 2005 as a Senior Fund Administrator. Ms. Kennedy was promoted to Assistant Treasurer Collective Funds/North American Mutual Funds in February 2008 and promoted to Treasurer Collective Funds/North American Mutual Funds in July 2008. |
The Asia Tigers Fund, Inc.
28
Management of the Fund (unaudited) (continued)
Name, Address and Year of Birth |
Position(s) Held With the Fund |
Term of Office and Length of Time Served |
Principal Occupation(s) During Past Five Years | |||
Adrian Lim* c/o Aberdeen Asset Management Inc. Attn: US Legal 1735 Market Street, 32nd Floor, Philadelphia, PA 19103
Year of Birth: 1971 |
Vice President | Since 2012 | Currently, Senior Investment Manager on the Asian Equities Team. Adrian joined Aberdeen in 2000 as a manager in private equity on the acquisition of Murray Johnstone and transferred to his current position soon after. | |||
Bev Hendry* c/o Aberdeen Asset Management Inc. Attn: US Legal 1735 Market Street, 32nd Floor, Philadelphia, PA 19103
Year of Birth: 1953 |
Vice President | Since 2014 | Co-Head of Americas and Chief Financial Officer for Aberdeen Asset Management Inc. since July 2014. He first joined Aberdeen in 1987 and helped establish Aberdeens business in the Americas in Fort Lauderdale. Mr. Hendry left Aberdeen in 2008 when the company moved to consolidate its headquarters in Philadelphia. Mr. Hendry re-joined Aberdeen from Hansberger Global Investors in Fort Lauderdale, Florida, where he worked for six years as Chief Operating Officer. | |||
Jennifer Nichols* c/o Aberdeen Asset Management Inc. Attn: US Legal 1735 Market Street, 32nd Floor, Philadelphia, PA 19103
Year of Birth: 1978 |
Vice President | Since 2011 | Currently, Global Head of Legal for Aberdeen. Director, Vice President for AAMI (since October 2006). | |||
Christian Pittard* c/o Aberdeen Asset Management Inc. Attn: US Legal 1735 Market Street, 32nd Floor, Philadelphia, PA 19103
Year of Birth: 1973 |
Vice President | Since 2011 | Currently, Group Head of Product Development, for Aberdeen Asset Management PLC and Director of Aberdeen Managers Limited since 2010. Previously, Director and Vice President (2006-2008), Chief Executive Officer (from October 2005 to September 2006) of Aberdeen Asset Management Inc. | |||
Hugh Young** c/o Aberdeen Asset Management Inc. Attn: US Legal 1735 Market Street, 32nd Floor, Philadelphia, PA 19103
Year of Birth: 1958 |
Vice President | Since 2012 | Mr. Young has been a member of the Executive Management Committee of Aberdeen Asset Management PLC since 1991. He has been Managing Director of Aberdeen Asset Management Asia Limited since 1991. | |||
Kasey Deja* c/o Aberdeen Asset Management Inc. 1735 Market Street, 32nd Floor, Philadelphia, PA 19103
Year of Birth: 1979 |
Assistant Secretary | Since 2012 | Currently, Senior Product Manager within Product Management for AAMI. Ms. Deja joined Aberdeen in 2005 as an Analyst in Investment Operations and transferred to the U.S. Transitions Team in 2007. In 2009, became Manager of the U.S. Transitions Team and transferred to her current position in 2011. |
The Asia Tigers Fund, Inc.
29
Management of the Fund (unaudited) (concluded)
Name, Address and Year of Birth |
Position(s) Held With the Fund |
Term of Office and Length of Time Served |
Principal Occupation(s) During Past Five Years | |||
Sharon Ferrari* c/o Aberdeen Asset Management Inc. Attn: US Legal 1735 Market Street, 32nd Floor, Philadelphia, PA 19103
Year of Birth: 1977 |
Assistant Treasurer | Since 2013 | Currently, Senior Fund Administration Manager for AAMI. Ms. Ferrari joined AAMI as a Senior Fund Administrator in 2008. Prior to joining AAMI, Ms. Ferrari was an Accounting Analyst at Delaware Investments. |
* | As of October 2014, Messrs. Goodson, Cotton, Lim, Hendry, and Pittard and Mses. Sitar, Melia, Kennedy, Nichols, Deja, Ferrari, and Rosala hold officer position(s) in one or more of the following: Aberdeen Asia-Pacific Income Fund, Inc., Aberdeen Global Income Fund, Inc., Aberdeen Australia Equity Fund, Inc., Aberdeen Emerging Markets Smaller Company Opportunities Fund, Inc., Aberdeen Israel Fund, Inc., Aberdeen Indonesia Fund, Inc., Aberdeen Latin America Equity Fund, Inc., Aberdeen Singapore Fund Inc., The India Fund Inc., The Asia Tigers Fund Inc., Aberdeen Greater China Fund, Inc., the Aberdeen Funds, Aberdeen Investment Funds, and Aberdeen Global Select Opportunites Fund, Inc. each of which may also be deemed to be a part of the same Fund Complex. |
** | Mr. Young serves as an Interested Director on the Aberdeen Australia Equity Fund, Inc. and The India Fund, Inc. which have a common Investment Manager and/or Investment Adviser with the Fund, or an investment adviser that is affiliated with the Investment Manager and Investment Adviser with the Fund, and may thus be deemed to be part of the same Fund Complex as the Fund. |
The Asia Tigers Fund, Inc.
30
Corporate Information
Aberdeen Asset Managers Limited
Notice is hereby given in accordance with Section 23(c) of the Investment Company Act of 1940 that the Fund may purchase, from time to time, shares of its common stock in the open market.
Shares of The Asia Tigers Fund, Inc. are traded on the NYSE under the symbol GRR. Information about the Funds net asset value and market price is available at www.aberdeengrr.com.
This report, including the financial information herein, is transmitted to the shareholders of The Asia Tigers Fund, Inc. for their general information only. It does not have regard to the specific investment objectives, financial situation and the particular needs of any specific person. Past performance is no guarantee of future returns.
Item 2 Code of Ethics.
As of October 31, 2014, the Registrant had adopted a Code of Ethics that applies to the Registrants principal executive officer, principal financial officer, principal accounting officer or controller, or persons performing similar functions (the Code of Ethics). During the period covered by this report, there were no material changes to the Code of Ethics. During the period covered by this report, there were no waivers to the provisions of the Code of Ethics. A copy of the Code of Ethics has been filed as an exhibit to this Form N-CSR.
Item 3 Audit Committee Financial Expert.
The Registrants Board of Directors has determined that Lawrence K. Becker, a member of the Board of Directors Audit Committee, possesses the attributes, and has acquired such attributes through means, identified in instruction 2 of Item 3 to Form N-CSR to qualify as an audit committee financial expert, and has designated Mr. Becker as the Audit Committees financial expert. Mr. Becker is an independent Director pursuant to paragraph (a)(2) of Item 3 to Form N-CSR.
Item 4 Principal Accountant Fees and Services.
(a) (d) Below is a table reflecting the fee information requested in Items 4(a) through (d):
Fiscal Year Ended |
(a) Audit Fees |
(b)(1) Audit-Related Fees |
(c)(2) Tax Fees |
(d) All Other Fees |
||||||||||||
October 31, 2014 | $ | 85,000 | $ | 0 | $ | 17,000 | $ | 0 | ||||||||
October 31, 2013 | $ | 82,555 | $ | 5,000 | $ | 16,195 | $ | 0 |
(1) | Services include procedures over the conversion of fund accounting books/records and semi-annual review procedures in connection with the Registrants semi-annual financial statements |
(2) | Services include tax services in connection with the Registrants excise tax calculations and review of the registrants applicable tax returns. |
(e)(1) | The Registrants Audit Committee (the Committee) has adopted a charter that provides that the Committee shall annually select, retain or terminate the Funds independent auditor and, in connection therewith, to evaluate the terms of the engagement (including compensation of the independent auditor) and the qualifications and independence of the independent auditor, including whether the independent auditor provides any consulting, auditing or tax services to the Registrants Investment Manager or any sub-adviser, and to receive the independent auditors specific representations as to their independence, delineating all relationships between the independent auditor and the Registrant, consistent with the PCAOB Rule 3526 or any other applicable auditing standard. The Committee Charter also provides that the Committee shall review in advance, and consider approval of, any and all proposals by Management or the Registrants Investment Manager that the Registrant, the investment adviser or their affiliated persons, employ the independent auditor to render permissible non-audit services to the Registrant and to consider whether such services are consistent with the independent auditors independence. |
(e)(2) | None of the services described in each of paragraphs (b) through (d) of this Item involved a waiver of the pre-approval requirement by the Audit Committee pursuant to Rule 2-01 (c)(7)(i)(C) of Regulation S-X. |
(f) | Not Applicable. |
(g) | The aggregate non-audit fees billed by the Registrants accountant for services rendered to the Registrant, and rendered to the Registrants Investment Manager (not including any sub-adviser whose role is primarily portfolio management and is subcontracted with or overseen by another investment adviser), and any entity controlling, controlled by, or under common control with the adviser that provides ongoing services to the Registrant for each of the last two fiscal years of the Registrant was $2,300,584 for 2014 and $845,290 for 2013. |
(h) | The registrants Audit Committee of the Board of Directors has considered whether the provision of non-audit services that were rendered to the Registrants Investment Manager (not including any sub-adviser whose role is primarily portfolio management and is subcontracted with or overseen by another investment adviser), and any entity controlling, controlled by, or under common control with the Investment Manager that provides ongoing services to the Registrant that were not pre-approved pursuant to paragraph (c)(7)(ii) of Rule 2-01 of Regulation S-X is compatible with maintaining the principal accountants independence and has concluded that it is. |
Item 5 Audit Committee of Listed Registrants.
(a) | The Registrant has a separately-designated standing Audit Committee established in accordance with Section 3(a)(58)(A) of the Exchange Act (15 U.S.C. 78c(a)(58)(A)). |
For the fiscal year ended October 31, 2014, the audit committee members were: Lawrence K. Becker, Leslie H. Gelb, Luis F. Rubio, and Jeswald W. Salacuse.
(b) | Not applicable |
Item 6 Investments.
(a) | Included as part of the Report to Shareholders filed under Item 1 of this Form N-CSR. |
(b) | Not applicable. |
Item 7 Disclosure of Proxy Voting Policies and Procedures for Closed-End Management Investment Companies.
Pursuant to the Registrants Proxy Voting Policy and Procedures, the Registrant has delegated responsibility for its proxy voting to its Investment Manager, provided that the Registrants Board of Directors has the opportunity to periodically review the Investment Managers proxy voting policies and material amendments thereto.
The proxy voting policies of the Registrant are included herewith as Exhibit (c) and policies of the Investment Manager are included as Exhibit (d).
Item 8 Portfolio Managers of Closed-End Management Investment Companies.
(a)(1) | The information in the table below is as of January 7, 2015. |
Individual & Position |
Services Rendered |
Past Business Experience | ||
Hugh Young Managing Director |
Responsible for equities globally from the Singapore office. | Mr. Young has been a member of the Executive Management Committee of Aberdeen Asset Management PLC since 1991. He has been Managing Director of Aberdeen Asset Management Asia Limited since 1991. |
Adrian Lim Senior Investment Manager Equities Asia |
Responsible for Asian equities portfolio management. | Joined Aberdeen from Murray Johnstone in December 2000. He was previously an associate director at Arthur Andersen advising clients on mergers & acquisitions in South East Asia. He moved from private equity to the Asian Equities team in July 2003. | ||
Christopher Wong Senior Investment Manager Equities Asia |
Responsible for Asian equities portfolio management. | Joined Aberdeen on the private equity desk in 2001 and transferred to the Asian Equities team in 2002. Prior to Aberdeen, he was an associate director with Andersen Corporate Finance, advising clients on mergers & acquisitions in South East Asia. | ||
Chou Chong Investment Director Equities Asia |
Responsible for company research and oversight of portfolio construction. | Joined Aberdeen in 1994 as a graduate trainee. After becoming a director, from 2001, he spent time in Sydney, Australia restructuring portfolios and turning around performance. In 2003, he transferred to London to lead the Pan-European equity desk and in June 2008 returned to Singapore and joined the Asian Equities Team. | ||
Flavia Cheong Investment Director Equities Asia |
Responsible for company research and oversight of portfolio construction. | Joined Aberdeen in 1996. Before joining Aberdeen, she was an economist with the Investment Company of the Peoples Republic of China, and earlier with the Development Bank of Singapore. |
(a)(2) | The information in the table below is as of October 31, 2014. |
Name of Portfolio Manager |
Type of Accounts |
Total Number of Accounts Managed |
Total Assets ($M) | Number of Accounts Managed for Which Advisory Fee is Based on Performance |
Total Assets for Which Advisory Fee is Based on Performance ($M) | |||||||||||||||||
Hugh Young |
Registered Investment Companies | 21 | $ | 13,518.17 | 0 | $ | 0 | |||||||||||||||
Pooled Investment Vehicles | 82 | $ | 58,553.28 | 2 | $ | 398.26 | ||||||||||||||||
Other Accounts | 132 | $ | 46,938.58 | 16 | $ | 5,017.36 | ||||||||||||||||
Adrian Lim |
Registered Investment Companies | 21 | $ | 13,518.17 | 0 | $ | 0 | |||||||||||||||
Pooled Investment Vehicles | 82 | $ | 58,553.28 | 2 | $ | 398.26 | ||||||||||||||||
Other Accounts | 132 | $ | 46,938.58 | 16 | $ | 5,017.36 |
Christopher Wong |
Registered Investment Companies | 21 | $ | 13,518.17 | 0 | $ | 0 | |||||||||||||||
Pooled Investment Vehicles |
82 | $ | 58,553.28 | 2 | $ | 398.26 | ||||||||||||||||
Other Accounts |
132 | $ | 46,938.58 | 16 | $ | 5,017.36 | ||||||||||||||||
Chou Chong |
Registered Investment Companies | 21 | $ | 13,518.17 | 0 | $ | 0 | |||||||||||||||
Pooled Investment Vehicles |
82 | $ | 58,553.28 | 2 | $ | 398.26 | ||||||||||||||||
Other Accounts |
132 | $ | 46,938.58 | 16 | $ | 5,017.36 | ||||||||||||||||
Flavia Cheong |
Registered Investment Companies | 21 | $ | 13,518.17 | 0 | $ | 0 | |||||||||||||||
Pooled Investment Vehicles |
82 | $ | 58,553.28 | 2 | $ | 398.26 | ||||||||||||||||
Other Accounts |
132 | $ | 46,938.58 | 16 | $ | 5,017.36 |
Total Assets are as of October 31, 2014 and have been translated into U.S. Dollars at a rate of £1.00 = 1.60.
In accordance with legal requirements in the various jurisdictions in which they operate, and their own Conflicts of Interest policies, all subsidiaries of Aberdeen Asset Management PLC, (together Aberdeen), have in place arrangements to identify and manage Conflicts of Interest that may arise between them and their clients or between their different clients. Where Aberdeen does not consider that these arrangements are sufficient to manage a particular conflict, it will inform the relevant client(s) of the nature of the conflict so that the client(s) may decide how to proceed.
The portfolio managers management of other accounts, including (1) mutual funds; (2) other pooled investment vehicles; and (3) other accounts that may pay advisory fees that are based on account performance (performance-based fees), may give rise to potential conflicts of interest in connection with their management of a Funds investments, on the one hand, and the investments of the other accounts, on the other. The other accounts may have the same investment objective as a Fund. Therefore, a potential conflict of interest may arise as a result of the identical investment objectives, whereby the portfolio manager could favor one account over another. However, Aberdeen believes that these risks are mitigated by the fact that: (i) accounts with like investment strategies managed by a particular portfolio manager are generally managed in a similar fashion, subject to exceptions to account for particular investment restrictions or policies applicable only to certain accounts, differences in cash flows and account sizes, and similar factors; and (ii) portfolio manager personal trading is monitored to avoid potential conflicts. In addition, Aberdeen has adopted trade allocation procedures that require equitable allocation of trade orders for a particular security among participating accounts.
In some cases, another account managed by the same portfolio manager may compensate Aberdeen based on the performance of the portfolio held by that account. The existence of such performance-based fees may create additional conflicts of interest for the portfolio manager in the allocation of management time, resources and investment opportunities.
Another potential conflict could include instances in which securities considered as investments for a Fund also may be appropriate for other investment accounts managed by Aberdeen or its affiliates. Whenever decisions are made to buy or sell securities by the Fund and one or more of the other accounts simultaneously, Aberdeen may aggregate the purchases and sales of the securities and will allocate the securities transactions in a manner that it believes to be equitable under the circumstances. As a result of the allocations, there may be instances where the Fund will not participate in a transaction that is allocated among other accounts. While these aggregation and allocation policies could have a detrimental effect on the price or amount of the securities available to a Fund from time to time, it is the opinion of Aberdeen that the benefits from the Aberdeen organization outweigh any disadvantage that may arise from exposure to simultaneous transactions. Aberdeen has adopted policies that are designed to eliminate or minimize conflicts of interest, although there is no guarantee that procedures adopted under such policies will detect each and every situation in which a conflict arises.
(a)(3)
Aberdeen Asset Management PLCs (Aberdeen) remuneration policies are designed to support its business strategy as a leading international asset manager. The objective is to attract, retain and reward talented individuals for the delivery of sustained, superior returns for Aberdeens clients and shareholders. Aberdeen operates in a highly competitive international employment market, and aims to maintain its strong track record of success in developing and retaining talent.
Aberdeens policy is to recognize corporate and individual achievements each year through an appropriate annual bonus scheme. The aggregate value of awards in any year is dependent on the groups overall performance and profitability. Consideration is also given to the levels of bonuses paid in the market. Individual awards, which are payable to all members of staff are determined by a rigorous assessment of achievement against defined objectives.
A long-term incentive plan for key staff and senior employees comprises of a mixture of cash and deferred shares in Aberdeen PLC or select Aberdeen funds (where applicable). Overall compensation packages are designed to be competitive relative to the investment management industry.
Base Salary
Aberdeens policy is to pay a fair salary commensurate with the individuals role, responsibilities and experience, and having regard to the market rates being offered for similar roles in the asset management sector and other comparable companies. Any increase is generally to reflect inflation and is applied in a manner consistent with other Aberdeen employees; any other increases must be justified by reference to promotion or changes in responsibilities.
Annual Bonus
Aberdeens policy is to recognize corporate and individual achievements each year through an appropriate annual bonus scheme. The Remuneration Committee of Aberdeen determines the key performance indicators that will be applied in considering the overall size of the bonus pool. In line with practice amongst other asset management companies, individual bonuses are not subject to an absolute cap. However, the aggregate size of the bonus pool is dependent on the groups overall performance and profitability. Consideration is also given to the levels of bonuses paid in the market. Individual awards are determined by a rigorous assessment of achievement against defined objectives, and are reviewed and approved by the Remuneration Committee.
Aberdeen has a deferral policy which is intended to assist in the retention of talent and to create additional alignment of executives interests with Aberdeens sustained performance and, in respect of the deferral into funds, managed by Aberdeen, to align the interest of asset managers with our clients.
Staff performance is reviewed formally at least once a year. The review process evaluates the various aspects that the individual has contributed to Aberdeen, and specifically, in the case of portfolio managers, to the
relevant investment team. Discretionary bonuses are based on client service, asset growth and the performance of the respective portfolio manager. Overall participation in team meetings, generation of original research ideas and contribution to presenting the team externally are also evaluated.
In the calculation of a portfolio management teams bonus, Aberdeen takes into consideration investment matters (which include the performance of funds, adherence to the company investment process, and quality of company meetings) as well as more subjective issues such as team participation and effectiveness at client presentations. To the extent performance is factored in, such performance is not judged against any specific benchmark and is evaluated over the period of a yearJanuary to December. The pre- or after-tax performance of an individual account is not considered in the determination of a portfolio managers discretionary bonus; rather the review process evaluates the overall performance of the team for all of the accounts the team manages.
Portfolio manager performance on investment matters is judged over all of the accounts the portfolio manager contributes to and is documented in the appraisal process. A combination of the teams and individuals performance is considered and evaluated.
Although performance is not a substantial portion of a portfolio managers compensation, Aberdeen also recognizes that fund performance can often be driven by factors outside ones control, such as (irrational) markets, and as such pays attention to the effort by portfolio managers to ensure integrity of our core process by sticking to disciplines and processes set, regardless of momentum and hot themes. Short-terming is thus discouraged and trading-oriented managers will thus find it difficult to thrive in the Aberdeen environment. Additionally, if any of the aforementioned undue risks were to be taken by a portfolio manager, such trend would be identified via Aberdeens dynamic compliance monitoring system.
(a)(4)
Individual |
Dollar Range of Equity Securities in the Registrant Beneficially Owned by the Portfolio Manager as of October 31, 2014 | |
Hugh Young | $0 | |
Adrian Lim | $0 | |
Christopher Wong | $0 | |
Chou Chong | $0 | |
Flavia Cheong | $0 |
(b) | Not applicable. |
Item 9 Purchases of Equity Securities by Closed-End Management Investment Company and Affiliated Purchasers.
REGISTRANT PURCHASES OF EQUITY SECURITIES
Period |
(a) Total Number of Shares (or Units) Purchased |
(b) Average Price Paid per Share (or Unit) |
(c) Total Number of Shares (or Units) Purchased as Part of Publicly Announced Plans or Programs |
(d) Maximum Number (or Approximate Dollar Value) of Shares (or Units) that May Yet Be Purchased Under the Plans or Programs |
||||||||||||
11/01/2013 to 11/30/2013 |
None | None | None | None |
12/01/2013 to 12/31/2013 |
None | None | None | None | ||||||||||||
01/01/14 to 01/31/14 |
189,467 | (1) | $ | 11.829 | (1) | 189,467 | (1) | None | ||||||||
02/01/14 to 02/28/14 |
None | None | None | None | ||||||||||||
03/01/14 to 03/31/14 |
None | None | None | None | ||||||||||||
04/01/14 to 04/30/14 |
None | None | None | None | ||||||||||||
05/01/14 to 05/31/14 |
None | None | None | None | ||||||||||||
06/01/14 to 06/30/14 |
10,421 | (2) | $ | 12.08 | (2) | 199,888 | (2) | 349,565 | (2) | |||||||
07/01/14 to 07/31/14 |
14,680 | (2) | $ | 12.20 | (2) | 214,568 | (2) | 334,885 | (2) | |||||||
08/01/14 to 08/31/14 |
8,000 | (2) | $ | 12.26 | (2) | 222,568 | (2) | 326,885 | (2) | |||||||
09/01/14 to 09/30/14 |
9,732 | (2) | $ | 12.36 | (2) | 232,300 | (2) | 317,153 | (2) | |||||||
10/01/14 to 10/31/14 |
18,818 | (2) | $ | 11.72 | (2) | 251,118 | (2) | 298,335 | (2) | |||||||
Total |
251,118 | $ | 11.89 | | |
(1) | These shares were repurchased in connection with the Funds regular, semi-annual repurchase offer announced on December 27, 2013 that expired on January 17, 2014. In connection with this repurchase offer, the Fund offered to repurchase up to 189,467 shares of its common stock, an amount equal to 5% of its outstanding shares of common stock, for cash at a price approximately equal to the Funds net asset value as of January 24, 2014. |
(2) | On November 2, 2012, the Fund announced that its Board of Directors, at a meeting held on October 30, 2012, authorized management to make open market purchases from time to time in an amount up to 10% of the Funds outstanding shares. Such purchases may be made when the Funds shares are trading at certain discounts to net asset value. The number of shares in columns (c) and (d) represent the aggregate number of shares purchased under the plan at each month end and the total number of shares that may still be purchased under the plan at each month end, respectively. |
Item 10 Submission of Matters to a Vote of Security Holders.
During the period ended October 31, 2014, there were no material changes to the procedures by which shareholders may recommend nominees to the Registrants Board of Directors.
Item 11 Controls and Procedures.
(a) | The Registrants principal executive and principal financial officers, or persons performing similar functions, have concluded that the Registrants disclosure controls and procedures (as defined in Rule |
30a-3(c) under the Investment Company Act of 1940 (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 Securities Exchange Act of 1934, as amended (17 CFR 240.13a-15(b) or 240.15d15(b)). |
(b) | There were no changes in the Registrants internal control over financial reporting (as defined in Rule 30a-3(d) under the Act (17 CFR 270.30a-3(d)) that occurred during the Registrants last fiscal half-year that has materially affected, or is reasonably likely to materially affect, the Registrants internal control over financial reporting. |
Item 12 Exhibits.
(a)(1) | Code of ethics, or any amendment thereto, for the period covered by this report that is the subject of disclosure required by Item 2(f) is attached hereto. |
(a)(2) | Certifications pursuant to Rule 30a-2(a) under the Investment Company Act of 1940 and Section 302 of the Sarbanes-Oxley Act of 2002 are attached hereto. |
(a)(3) | Not applicable. |
(b) | Certifications pursuant to Rule 30a-2(b) under the Investment Company Act of 1940 and Section 906 of the Sarbanes-Oxley Act of 2002 are attached hereto. |
(c) | Proxy Voting Policy of Registrant. |
(d) | Proxy Voting Policies and Procedures of Investment Manager. |
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 Tigers Fund, Inc.
By (Signature and Title): | /s/ Alan Goodson | |
Alan Goodson, Principal Executive Officer |
Date: January 7, 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/ Alan Goodson | |
Alan Goodson, Principal Executive Officer |
Date: January 7, 2015
By (Signature and Title): | /s/ Andrea Melia | |
Andrea Melia, Principal Financial Officer |
Date: January 7, 2015