UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

 

 

FORM N-Q

 

 

QUARTERLY SCHEDULE OF PORTFOLIO HOLDINGS OF REGISTERED

MANAGEMENT INVESTMENT COMPANIES

 

Investment Company Act file number:		811-04710
Exact name of registrant as specified in charter:		The Asia Pacific Fund, Inc.
Address of principal executive offices:		Gateway Center 3,
		100 Mulberry Street,
		Newark, New Jersey 07102
Name and address of agent for service:		Deborah A. Docs
		Gateway Center 3,
		100 Mulberry Street,
		Newark, New Jersey 07102
Registrant’s telephone number, including area code:		973-367-7521
Date of fiscal year end:		3/31/2010
Date of reporting period:		6/30/2009

 

 

 

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Item 1.

Schedule of Investments

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The Asia Pacific Fund, Inc.

Portfolio of Investments

June 30, 2009 (Unaudited)

 

Shares		Description		Value
LONG-TERM INVESTMENTS—99.1%
EQUITIES
CHINA (INCLUDING HONG KONG)—43.9%
580,000		Angang Steel Co. Ltd. (Class “H” Shares)		$	962,420
		(Materials)
84,000		Anhui Conch Cement Co. Ltd.(a) (Class “H” Shares)			525,674
		(Materials)
379,200		Bank of East Asia Ltd.			1,157,164
		(Banking)
1,391,500		BOC Hong Kong Holdings Ltd.			2,438,251
		(Banking)
162,000		Cheung Kong Holdings Ltd.			1,862,466
		(Real Estate-Developers)
2,468,000		China Citic Bank (Class “H” Shares)			1,601,801
		(Banking)
3,624,000		China Construction Bank Corp. (Class “H” Shares)			2,810,335
		(Banking)
362,000		China Life Insurance Co. Ltd. (Class “H” Shares)			1,331,217
		(Diversified Financials)
767,650		China Merchants Bank Co. Ltd. (Class “H” Shares)			1,757,164
		(Banking)
446,000		China Mengniu Dairy Co. Ltd.			1,039,317
		(Consumer Staples)
351,500		China Mobile Ltd.			3,519,513
		(Telecommunications)
916,000		China Oilfield Services Ltd. (Class “H” Shares)			994,001
		(Energy)
595,680		China Overseas Land & Investment Ltd.			1,383,506
		(Real Estate-Developers)
392,000		China Resources Land Ltd.			868,970
		(Real Estate-Developers)
358,000		China Resources Power Holdings Co. Ltd.			796,372
		(Utilities)
491,000		China Shenhua Energy Co. Ltd. (Class “H” Shares)			1,808,769
		(Energy)
882,000		China Shipping Development Co. Ltd. (Class “H” Shares)			1,138,057
		(Industrials)
1,037,000		CNOOC Ltd.			1,285,872
		(Energy)
1,152,000		Dongfeng Motor Group Co. Ltd. (Class “H” Shares)			972,133
		(Consumer Discretionary)
240,000		Hang Lung Properties Ltd.			794,318
		(Real Estate-Developers)
23,500		Hong Kong Exchanges and Clearing Ltd.			365,991
		(Diversified Financials)
5,055,000		Industrial & Commercial Bank of China (Class “H” Shares)			3,522,171
		(Banking)
388,500		Parkson Retail Group Ltd.			555,426
		(Consumer Discretionary)
90,000		Ping An Insurance Group Co. of China Ltd. (Class “H” Shares)			609,093
		(Diversified Financials)
511,500		Sino-Ocean Land Holdings Ltd.			585,416
		(Real Estate-Developers)
584,000		Sinofert Holdings Ltd.			295,389
		(Materials)
92,000		Sun Hung Kai Properties Ltd.			1,149,102
		(Real Estate-Developers)
1,255,500		Techtronic Industries Co.			869,934
		(Consumer Discretionary)
66,600		Tencent Holdings Ltd.			777,282
		(Information Technology)
752,000		Tianjin Development Holdings			475,455
		(Industrials)
1,389,500		Tianjin Port Development Holdings Ltd.			607,790
		(Industrials)

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760,000		Yanzhou Coal Mining Co. Ltd. (Class “H” Shares)		1,045,361
		(Energy)
303,000		Zhuzhou CSR Times Electric Co. Ltd.		429,280
		(Industrials)
				40,335,010
INDIA—1.0%
12,020		Infosys Technologies Ltd.		445,747
		(Information Technology)
63,836		Mphasis Ltd.		515,898
		(Information Technology)
				961,645
INDONESIA—2.1%
968,000		Bank Rakyat Indonesia		597,443
		(Banking)
350,500		PT Indo Tambangraya Megah Tbk		685,033
		(Energy)
932,000		PT Telekomunikasi Indonesia Tbk		684,791
		(Telecommunications)
				1,967,267
MALAYSIA—2.7%
1,404,600		Axiata Group Berhad(a)		947,056
		(Telecommunications)
37,900		British American Tobacco Malaysia Berhad		482,511
		(Consumer Staples)
210,000		Bumiputra-Commerce Holdings Berhad		540,683
		(Banking)
212,400		Public Bank Berhad		543,841
		(Banking)
				2,514,091
PHILIPPINES—0.6%
28,670,000		Megaworld Corp.		583,825
		(Real Estate-Developers)
SINGAPORE—9.3%
499,000		CapitaLand Ltd.		1,278,162
		(Real Estate-Developers)
187,000		City Developments Ltd.		1,107,746
		(Real Estate-Developers)
160,000		DBS Group Holdings Ltd.		1,303,507
		(Banking)
135,000		Keppel Corp. Ltd.		643,123
		(Industrials)
841,000		Olam International Ltd.		1,410,957
		(Consumer Staples)
553,000		Singapore Telecommunications Ltd.		1,145,402
		(Telecommunications)
317,000		Wilmar International Ltd.		1,098,688
		(Consumer Staples)
326,000		Yanlord Land Group Ltd.		515,424
		(Real Estate-Developers)
				8,503,009
SOUTH KOREA—17.3%
67,650		Hana Financial Group, Inc.		1,455,010
		(Banking)
14,930		Hanjin Heavy Industries & Construction Co. Ltd.		389,086
		(Industrials)
17,960		Hyundai Development Co.		568,850
		(Industrials)
16,653		Hyundai Mobis		1,457,521
		(Consumer Discretionary)
33,755		Hyundai Motor Co.		1,963,378
		(Consumer Discretionary)
27,050		KB Financial Group, Inc.(a)		908,780
		(Banking)
37,260		Korea Electric Power Corp.		867,192
		(Utilities)
101,670		Korea Exchange Bank		791,684
		(Banking)
3,912		LG Chem Ltd.		428,372
		(Materials)
16,067		LG Electronics, Inc.		1,475,599
		(Consumer Discretionary)
2,114		LG Household & Health Care Ltd.		358,432
		(Consumer Staples)
40,890		LG International Corp.		802,425
		(Industrials)
2,834		OCI Co. Ltd.		477,172
		(Materials)
5,120		POSCO		1,702,045
		(Materials)

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3,879		Samsung Electronics Co. Ltd.			1,802,557
		(Information Technology)
17,480		Woongjin Coway Co. Ltd.			425,354
		(Consumer Discretionary)
					15,873,457
TAIWAN—19.0%
1,362,000		Asia Cement Corp.			1,452,911
		(Materials)
1,213,000		Cathay Financial Holding Co. Ltd.			1,794,915
		(Diversified Financials)
2,071,855		Far Eastern Textile Ltd.(b)			2,399,588
		(Industrials)
257,000		Farglory Land Development Co. Ltd.			622,722
		(Real Estate-Developers)
1,455,000		Fubon Financial Holding Co. Ltd.			1,361,429
		(Diversified Financials)
122,686		Hon Hai Precision Industry Co. Ltd.			379,538
		(Information Technology)
88,000		HTC Corp.			1,244,499
		(Information Technology)
404,000		InnoLux Display Corp.			494,380
		(Information Technology)
116,000		Largan Precision Co. Ltd.			1,226,821
		(Information Technology)
119,000		MediaTek, Inc.			1,421,762
		(Information Technology)
369,000		Novatek Microelectronics Corp. Ltd.			881,731
		(Information Technology)
342,000		Taiwan Cement Corp.			327,303
		(Materials)
191,000		Taiwan Fertilizer Co. Ltd.			567,004
		(Materials)
717,000		Wistron Corp.			1,190,994
		(Information Technology)
31,888		Young Fast Optoelectronics Co. Ltd.			296,429
		(Information Technology)
2,277,000		Yuanta Financial Holding Co. Ltd.			1,533,731
		(Diversified Financials)
240,000		Yulon Motor Co. Ltd.			228,223
		(Consumer Discretionary)
					17,423,980
THAILAND—3.2%
570,300		Bangkok Bank PCL (Class “F” Shares)			1,874,775
		(Banking)
257,200		PTT Exploration & Production PCL			1,026,686
		(Energy)
					2,901,461
		Total common stocks			91,063,745
Units
RIGHTS(1)
CHINA
35,800		China Resources Power Holdings Co. Ltd., expiring 7/10/09 (Utilities)			15,244
		Total long-term investments (cost $71,727,021)			91,078,989
SHORT-TERM INVESTMENT—0.6%
MONEY MARKET MUTUAL FUND
Shares
UNITED STATES
522,180		JPMorgan Prime Money Market Fund/Premier (cost $522,180)			522,180
		Total Investments—99.7% (cost $72,249,201)(c)			91,601,169
		Other assets in excess of liabilities(d)—0.3%			313,365
		Net Assets—100.0%		$	91,914,534

 

The following annotations are used in the Portfolio of Investments:

(a)	Non-income producing securities.

(b)	An Independent Director of the Fund is Chairman and Chief Executive Officer of the Company.

(c)	The United States federal income tax basis of the Fund’s investments and the net unrealized appreciation as of June 30, 2009 were as follows:

 

Tax Basis of Investments		Gross Appreciation		Gross Depreciation		Net Unrealized Appreciation
$ 75,480,101		$17,410,268		$(1,289,200)		$16,121,068

The difference between book basis and tax basis was primarily attributable to deferred losses on wash sales.

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(d)	Other assets in excess of liabilities includes unrealized depreciation on futures contracts as follows:

Open futures contracts outstanding at June 30, 2009:

 

Number of Contracts		Type		Expiration Date		Value at Trade date			Value at June 30, 2009			Unrealized Depreciation(1)
		Short Positions:
22		H-Shares Index		July 2009		$	1,450,005		$	1,562,700		$	(112,695	)
5		Hang Seng Index		July 2009			562,932			594,190			(31,258	)
												$	(143,953	)

 

(1)	The amount represents fair value of derivative instruments subject to equity contract risk exposure as of June 30, 2009.

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

Level 1 - quoted prices in active markets for identical securities

Level 2 - other significant observable inputs (including quoted prices for similar securities, interest rates, prepayment speeds, credit risk, etc.)

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

The following is a summary of the inputs used as of June 30, 2009 in valuing the Fund’s assets carried at fair value:

 

		Level 1				Level 2			Level 3
Investments in Securities
Equities
China (including Hong Kong)		$	40,335,010			$	—		$	—
India			961,645				—			—
Indonesia			1,967,267				—			—
Malaysia			2,514,091				—			—
Philippines			583,825				—			—
Singapore			8,503,009				—			—
South Korea			15,873,457				—			—
Taiwan			17,423,980				—			—
Thailand			2,901,461				—			—
Rights
China			15,244				—			—
Money Market Mutual Fund			522,180				—			—
			91,601,169				—			—
Other Financial Instruments*			(143,953	)			—			—
Total		$	91,457,216			$	—		$	—

 

*	Other financial instruments are derivative instruments not reflected in the Portfolio of Investments, such as futures, forwards and swap contracts, which are valued at the unrealized appreciation/depreciation on the instrument.

As of March 31, 2009 and June 30, 2009, the Fund did not use any significant unobservable inputs (Level 3) in determining the value of investments.

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The Industry classification of portfolio holdings and other assets in excess of liabilities shown as a percentage of net assets as of June 30, 2009 was as follows:

 

Banking		23.2	%
Real Estate—Developers		11.7
Information Technology		11.6
Consumer Discretionary		8.7
Industrials		8.1
Diversified Financials		7.6
Energy		7.4
Materials		7.3
Telecommunications		6.9
Consumer Staples		4.8
Utilities		1.8
Mutual Funds		0.6
		99.7
Other assets in excess of liabilities		0.3
Total		100.0	%

Notes to Portfolio of Investments (Unaudited)

Securities Valuation: Investments are stated at value. Securities for which the primary market is on an exchange are valued at the last sale price on such exchange on the day of valuation or, if there was no sale on such day, at the last bid price quoted on such day. Securities for which reliable market quotations are not readily available, or whose value have been affected by events occurring after the close of the security’s foreign market and before the Fund’s normal pricing time, are valued at the fair value in accordance with the Board of Director’s approved fair valuation procedures. When determining the fair valuation of securities, some of the factors influencing the valuation include the nature of any restrictions on disposition of the securities; assessment of the general liquidity of the securities; the issuer’s financial condition and the markets in which it does business; the cost of the investment; the size of the holding and the capitalization of the issuer; the prices of any recent transactions or bids/offers for such securities or any comparable securities; any available analyst, media or other reports or information regarding the issuer or the markets or industry in which it operates; other analytical data; and consistency with valuation of similar securities held by other funds managed by Baring Asset Management (Asia) Limited. Using fair value to price securities may result in a value that is different from a security’s most recent closing price and from the price used by other mutual funds to calculate their net asset values.

Investments in mutual funds are valued at their net asset value on each day the New York Stock Exchange is open for trading.

Market values of investments traded in a foreign currency are translated into U.S. dollars at the current rates of exchange.

Stock Index Futures Contracts: A stock index futures contract is an agreement to purchase (long) or sell (short) an agreed amount of securities at a set price for delivery on a future date. Upon entering into a stock index futures contract, the Fund is required to pledge to the broker an amount of cash and/or other assets equal to a certain percentage of the contract amount. This amount is known as the “initial margin.” Subsequent payments known as “variation margin,” are made or received by the Fund each day, depending on the daily fluctuations in the value of the underlying security. Such variation margin is recorded for financial statement purposes on a daily basis as unrealized gain or loss. When the contract expires or is closed, the gain or loss is realized and is presented in the Statement of Operations as net realized gain or loss on stock index futures contracts.

The Fund may utilize stock index futures contracts for hedging and investment purposes. Should market prices for the futures contracts or the underlying assets move in ways not anticipated by the Fund, losses may result. The use of futures contracts for hedging and investment purposes involves the risk of imperfect correlation in the movements in prices of futures contracts and the underlying assets being hedged or the exposures desired by the Fund.

With stock index futures contracts, there is minimal counterparty credit risk to the Fund since the exchanges’ clearinghouse acts as counterparty to the futures, and guarantees the futures contracts against default.

Other information regarding the Fund is available in the Fund’s most recent Annual and Semi-Annual Reports to Shareholders. This information is available on the Securities and Exchange Commission’s website (www.sec.gov).

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Item 2.

Controls and Procedures

 

(a)

It is the conclusion of the registrant’s principal executive officer and principal financial officer that the effectiveness of the registrant’s current disclosure controls and procedures (such disclosure controls and procedures having been evaluated within 90 days of the date of this filing) provide reasonable assurance that the information required to be disclosed by the registrant has been recorded, processed, summarized and reported within the time period specified in the Commission’s rules and forms and that the information required to be disclosed by the registrant has been accumulated and communicated to the registrant’s principal executive officer and principal financial officer in order to allow timely decisions regarding required disclosure.

 

(b)

There have been no significant changes in the registrant’s internal controls or in other factors that could significantly affect these controls subsequent to the date of their evaluation, including any corrective actions with regard to significant deficiencies and material weaknesses.

 

Item 3.

Exhibits

Certifications pursuant to Rule 30a-2(a) under the Investment Company Act of 1940 – Attached hereto.

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SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

 

(Registrant) The Asia Pacific Fund, Inc.
By (Signature and Title)*		/s/ Andrew R. French
		Andrew R. French
		Assistant Secretary
Date August 25, 2009

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/ Brian Corris
		Brian Corris
		President and Principal Executive Officer
Date August 25, 2009

 

By (Signature and Title)*		/s/ M. Sadiq Peshimam
		M. Sadiq Peshimam
		Treasurer and Principal Financial and Accounting Officer
Date August 25, 2009

 

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