UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, DC 20549

 

FORM N-Q

QUARTERLY SCHEDULE OF PORTFOLIO HOLDINGS OF REGISTERED

MANAGEMENT INVESTMENT COMPANY

_______________________________

Investment Company Act file number: 811-06041

The Central Europe, Russia and Turkey Fund, Inc.

(Exact name of registrant as specified in charter)

 

345 Park Avenue
New York, NY 10154

(Address of principal executive offices) (Zip code)

 

Paul Schubert

60 Wall Street

New York, NY 10005

(Name and address of agent for service)

Registrant's telephone number, including area code: (212) 250-3220

Date of fiscal year end: 10/31

Date of reporting period: 7/31/2015

 

ITEM 1. SCHEDULE OF INVESTMENTS

  

The Central Europe, Russia and Turkey Fund, Inc.

 

Schedule of Investments    as of July 31, 2015 (Unaudited)

 

  Shares Value ($)
Russia  51.3%
Common Stocks  49.0%
Commercial Banks  6.3%
Bank St Petersburg* 6,497,860   4,152,782 
Sberbank of Russia* 2,000,000   2,369,600 
Sberbank of Russia (ADR) 1,050,000   5,179,125 
      11,701,507 
Diversified Financial Services  1.3%
Moscow Exchange 2,000,000   2,310,600 
     
Diversified Telecommunication Services  0.6%
Rostelecom* 800,000   1,114,160 
     
Food & Staples Retailing  8.3%
DIXY Group* 335,000   1,822,534 
Magnit* 32,000   6,397,415 
Magnit (GDR) Reg S 90,000   4,882,500 
X5 Retail Group (GDR) Reg S* 130,000   2,327,000 
      15,429,449 
Independent Power Producers & Energy Traders  0.9%
E.ON Russia* 40,000,000   1,700,000 
     
Metals & Mining  5.8%
Magnitogorsk Iron & Steel Works (GDR) Reg S 171,821   698,452 
MMC Norilsk Nickel (ADR)† 655,000   10,073,900 
      10,772,352 
Oil, Gas & Consumable Fuels  22.0%
Gazprom (ADR) 3,883,774   17,884,779 
LUKOIL (ADR)† 375,000   15,506,250 
NovaTek (GDR) Reg S 35,000   3,491,250 
Rosneft (GDR) Reg S 450,000   1,737,000 
Tatneft (ADR) 75,000   2,207,250 
      40,826,529 
Wireless Telecommunication Services  3.8%
MegaFon (GDR) Reg S 209,496   2,597,750 
Mobile Telesystems (ADR)† 440,527   3,647,564 
Sistema (GDR) Reg S 100,000   849,000 
      7,094,314 
     
Preferred Stocks  2.3%
Commercial Banks  0.7%
Sberbank of Russia (Cost $2,565,443)* 1,600,000   1,347,360 
     
Oil, Gas & Consumable Fuels  1.6%
Surgutneftegaz (Cost $2,813,275)* 4,600,000   2,845,560 
     
Total Russia (Cost $105,245,049)     95,141,831 
     
     
Turkey  17.7%
Common Stocks
Airlines  1.4%
Turk Hava Yollari* 825,000   2,695,864 
     
Automobiles  1.2%
Ford Otomotiv Sanayi 96,713   1,154,928 
Tofas Turk Otomobil Fabrikasi 150,000   985,200 
      2,140,128 
Beverages  0.9%
Coca-Cola Icecek 110,000   1,584,280 
     
Commercial Banks  7.4%
Akbank 1,478,008   3,968,596 
Turkiye Garanti Bankasi 1,100,000   3,264,095 
Turkiye Halk Bankasi 575,000   2,517,732 
Turkiye Is Bankasi 1,479,748   2,891,597 
     
  Shares Value ($)
Commercial Banks  7.4% (Continued)
Turkiye Vakiflar Bankasi Tao† 700,000   1,058,841 
      13,700,861 
Diversified Financial Services  1.3%
Haci Omer Sabanci Holding 700,000   2,401,389 
     
Food & Staples Retailing  0.9%
Migros Ticaret* 235,000   1,756,079 
     
Food Products  0.5%
Ulker Biskuvi Sanayi 170,000   947,384 
     
Gas Utilities  1.3%
Aygaz† 650,000   2,458,023 
     
Industrial Conglomerates  1.5%
Enka Insaat ve Sanayi 499,999   908,300 
KOC Holding 425,000   1,891,691 
      2,799,991 
Metals & Mining  0.4%
Kardemir Karabuk Demir Celik Sanayi ve Ticaret† 1,500,000   803,358 
     
Oil, Gas & Consumable Fuels  0.9%
Tupras Turkiye Petrol Rafinerileri* 61,022   1,589,920 
     
Total Turkey (Cost $35,043,306)     32,877,277 
     
Poland  16.9%
Common Stocks
Air Freight & Logistics  1.2%
Integer.pl*† 65,599   2,344,628 
     
Commercial Banks  6.2%
Bank Millennium* 1,643,617   2,688,149 
Bank Zachodni WBK* 22,500   1,801,352 
Powszechna Kasa Oszczednosci Bank Polski 895,772   6,960,737 
      11,450,238 
Diversified Telecommunication Services  1.7%
Orange Polska 1,500,000   3,243,092 
     
Electric Utilities  2.0%
PGE Polska Grupa Energetyczna 793,000   3,736,925 
     
Food & Staples Retailing  0.8%
Eurocash 123,996   1,431,116 
     
Insurance  1.1%
Powszechny Zaklad Ubezpieczen 17,500   2,008,384 
     
Media  1.0%
Cyfrowy Polsat* 300,000   1,842,938 
     
Metals & Mining  1.5%
KGHM Polska Miedz 107,663   2,719,992 
     
Oil, Gas & Consumable Fuels  1.4%
Polski Koncern Naftowy Orlen† 125,000   2,531,048 
     
Total Poland (Cost $36,526,196)     31,308,361 
     
Hungary  4.7%
Common Stocks
Commercial Banks  1.3%
OTP Bank PLC 115,000   2,371,070 
     
Oil, Gas & Consumable Fuels  1.8%
MOL Hungarian Oil & Gas PLC 62,607   3,316,392 
     
  Shares Value ($)
Pharmaceuticals  1.6%
Richter Gedeon Nyrt 185,000   2,985,070 
     
Total Hungary (Cost $8,078,052)     8,672,532 
     
Czech Republic  2.7%
Common Stocks
Commercial Banks  0.6%
Komercni banka as 5,000   1,122,075 
     
Electric Utilities  2.1%
CEZ 160,000   3,886,877 
     
Total Czech Republic (Cost $5,408,773)     5,008,952 
     
Kazakhstan  0.9%
Common Stocks
Metals & Mining  0.9%
Goldbridges Global Resources PLC (Cost $1,824,442)*  50,000,000   1,611,423 
     
     
Securities Lending Collateral  5.2%
Daily Assets Fund Institutional, 0.18%    
(Cost $9,707,792)(a)(b) 9,707,792   9,707,792 
     
Cash Equivalents  1.8%
Central Cash Management Fund, 0.10%    
(Cost $3,441,429)(b) 3,441,429   3,441,429 
     
     
  % of Net Assets Value ($)
Total Investments Portfolio (Cost $205,275,039)** 101.2   187,769,597 
Other Assets and Liabilities, Net (1.2)   (2,295,919)
Net Assets 100.0   185,473,678 
 

 

* Non-income producing security.
** The cost for federal income tax purposes was $206,309,013. At July 31, 2015, net unrealized depreciation for all securities based on tax cost was $18,539,416. This consisted of aggregate gross unrealized appreciation for all securities in which there was an excess of value over tax cost of $18,566,074 and aggregate gross unrealized depreciation for all securities in which there was an excess of tax cost over value of $37,105,490.
† All or a portion of these securities were on loan. The value of all securities loaned at July 31, 2015 amounted to $9,469,697, which is 5.1% of net assets.
(a) Represents collateral held in connection with securities lending. Income earned by the Fund is net of borrower rebates.
(b) Affiliated fund managed by Deutsche Investment Management Americas Inc. The rate shown is the annualized seven-day yield at period end.

 

ADR - American Depositary Receipt
GDR - Global Depositary Receipt
Reg S - Securities sold under Regulation S may not be offered, sold or delivered within the United States or to, or for the account or benefit of, U.S. persons, except pursuant to an exemption from, or in a transaction not subject to, the registration requirements of the Securities Act of 1933.
 

 

For purposes of its industry concentration policy, the Fund classifies issuers of portfolio securities at the industry sub-group level. Certain of the categories in the above Schedule of Investments consist of multiple industry sub-groups or industries.

 

 

Fair Value Measurements
 
Various inputs are used in determining the value of the Fund’s investments. These inputs are summarized in three broad levels. Level 1 includes quoted prices in active markets for identical securities. Level 2 includes other significant observable inputs (including quoted prices for similar securities, interest rates, prepayment speeds and credit risk). Level 3 includes significant unobservable inputs (including the Fund’s own assumptions in determining the fair value of investments). The level assigned to the securities valuations may not be an indication of the risk associated with investing in those securities.
 
The following is a summary of the inputs used as of July 31, 2015 in valuing the Fund’s investments.  
         
Assets Level 1 Level 2 Level 3 Total
Common Stocks and/or Other Equity Investments (c)  
Russia $ 95,141,831  $ —   $ —   $ 95,141,831 
Turkey   32,877,277    —     —     32,877,277 
Poland   31,308,361    —     —     31,308,361 
Hungary   8,672,532    —     —     8,672,532 
Czech Republic   5,008,952    —     —     5,008,952 
Kazakhstan   1,611,423    —     —     1,611,423 
Short-Term Instruments (c)   13,149,221    —     —     13,149,221 
Total $ 187,769,597  $ —   $ —   $ 187,769,597 
         
There have been no transfers between fair value measurement levels during the period ended July 31, 2015.
 
(c) See Schedule of Investments for additional detailed categorizations.
 

 

 

ITEM 2. CONTROLS AND PROCEDURES
   
  (a) The Chief Executive and Financial Officers concluded that the Registrant’s Disclosure Controls and Procedures are effective based on the evaluation of the Disclosure Controls and Procedures as of a date within 90 days of the filing date of this report.
   
  (b) There have been no changes in the registrant’s internal control over financial reporting that occurred during the registrant’s last fiscal quarter that has materially affected, or is reasonably likely to materially affect, the registrant’s internal controls over financial reporting.
   
ITEM 3. EXHIBITS
   
  Certification pursuant to Rule 30a-2(a) under the Investment Company Act of 1940 (17 CFR 270.30a-2(a)) is filed and attached hereto as Exhibit 99.CERT.

 

 

 

 

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 Central Europe, Russia and Turkey Fund, Inc.
   
By:

/s/Brian E. Binder

Brian E. Binder

President

   
Date: September 22, 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:

/s/Brian E. Binder

Brian E. Binder

President

   
Date: September 22, 2015
   
   
   
By:

/s/Paul Schubert

Paul Schubert

Chief Financial Officer and Treasurer

   
Date: September 22, 2015