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: | 655 Broad Street, 17th Floor | |
| Newark, New Jersey 07102 | ||
| Name and address of agent for service: | Deborah A. Docs | |
| 655 Broad Street, 17th Floor | ||
| Newark, New Jersey 07102 | ||
| Registrant’s telephone number, including area code: | 973-367-7521 | |
| Date of fiscal year end: | 03/31/2016 | |
| Date of reporting period: | 12/31/2015 | |
Item 1. Schedule of Investments
The Asia Pacific Fund, Inc.
Schedule of Investments
as of December 31, 2015 (Unaudited)
| Shares | Value | |||||||||||
| LONG-TERM INVESTMENTS — 99.4% |
||||||||||||
| COMMON STOCKS — 85.3% |
||||||||||||
| CHINA (INCLUDING HONG KONG AND MACAU SAR) — 63.2% |
||||||||||||
| Agricultural Bank of China Ltd. (Class “H” Shares) (Banking) |
4,082,000 | $ | 1,669,659 | |||||||||
| Anhui Conch Cement Co. Ltd. (Class “H” Shares) (Materials) |
180,000 | 484,255 | ||||||||||
| BAIC Motor Corp. Ltd. (Class “H” Shares) (Consumer Discretionary) |
1,963,000 | 1,965,520 | ||||||||||
| Bank of China Ltd. (Class “H” Shares) (Banking) |
8,835,000 | 3,944,375 | ||||||||||
| Belle International Holdings Ltd. (Consumer Discretionary) |
1,619,000 | 1,215,809 | ||||||||||
| BOC Hong Kong Holdings Ltd. (Banking) |
709,000 | 2,168,154 | ||||||||||
| Cheung Kong Property Holdings Ltd. (Real Estate-Developers) |
213,656 | 1,389,444 | ||||||||||
| China Construction Bank Corp. (Class “H” Shares) (Banking) |
5,341,000 | 3,659,423 | ||||||||||
| China High Speed Transmission Equipment Group Co. Ltd. (Industrials) |
1,510,000 | 1,215,786 | ||||||||||
| China Life Insurance Co. Ltd. (Class “H” Shares) (Insurance) |
1,336,000 | 4,318,269 | ||||||||||
| China Lilang Ltd. (Consumer Discretionary) |
1,891,000 | 1,395,671 | ||||||||||
| China Machinery Engineering Corp. (Class “H” Shares) (Industrials) |
894,000 | 656,365 | ||||||||||
| China Overseas Land & Investment Ltd. (Real Estate-Developers) |
1,016,000 | 3,565,809 | ||||||||||
| China Power International Development Ltd. (Utilities) |
4,097,000 | 2,368,315 | ||||||||||
| China Resources Cement Holdings Ltd. (Materials) |
1,766,000 | 542,329 | ||||||||||
| China Resources Power Holdings Co. Ltd. (Utilities) |
1,278,622 | 2,487,935 | ||||||||||
| China Shenhua Energy Co. Ltd. (Class “H” Shares) (Energy) |
397,500 | 624,712 | ||||||||||
| China State Construction International Holdings Ltd. (Industrials) |
210,000 | 364,720 | ||||||||||
| China Vanke Co. Ltd. (Class “H” Shares) (Real Estate-Developers) |
589,838 | 1,760,146 | ||||||||||
| Chongqing Changan Automobile Co. Ltd. (Class “B” Shares) (Consumer Discretionary) |
372,978 | 822,953 | ||||||||||
| Chow Sang Sang Holdings International Ltd. (Consumer Discretionary) |
479,000 | 788,645 | ||||||||||
| CIFI Holdings Group Co. Ltd. (Real Estate-Developers) |
6,042,000 | 1,348,722 | ||||||||||
| CK Hutchison Holdings Ltd. (Industrials) |
182,156 | 2,458,503 | ||||||||||
| CSI Properties Ltd. (Real Estate-Developers) |
30,750,000 | 1,051,445 | ||||||||||
| Dalian Wanda Commercial Properties Co. Ltd. (Class “H” Shares) (Real Estate-Developers) |
312,900 | 1,826,920 | ||||||||||
| Daqin Railway Co. Ltd. (Class “A” Shares) (Industrials) |
707,300 | 938,913 | ||||||||||
| Dongfeng Motor Group Co. Ltd. (Class “H” Shares) (Consumer Discretionary) |
442,000 | 590,850 | ||||||||||
| EGL Holdings Co. Ltd. (Consumer Discretionary) |
2,246,000 | 747,696 | ||||||||||
| Far East Consortium International Ltd. (Real Estate-Developers) |
2,977,938 | 1,133,530 | ||||||||||
| Far East Horizon Ltd. (Financials) |
864,000 | 803,793 | ||||||||||
| HKT Trust & HKT Ltd. (Stapled Shares) (Telecommunication Services) |
949,000 | 1,212,263 | ||||||||||
| Hopefluent Group Holdings Ltd. (Real Estate-Developers) |
4,568,000 | 1,279,032 | ||||||||||
| Huadian Power International Corp. Ltd. (Class “H” Shares) (Utilities) |
910,000 | 592,964 | ||||||||||
| Hui Xian Real Estate Investment Trust (Real Estate Investment Trusts) |
982,739 | 503,961 | ||||||||||
| Jiangnan Group Ltd. (Industrials) |
9,962,000 | 1,953,825 | ||||||||||
| Lee & Man Chemical Co. Ltd. (Industrials) |
1,246,000 | 369,778 | ||||||||||
| Longfor Properties Co. Ltd. (Real Estate-Developers) |
1,790,000 | 2,669,970 | ||||||||||
| MGM China Holdings Ltd. (Consumer Discretionary) |
339,200 | 424,544 | ||||||||||
| Modern Beauty Salon Holdings Ltd. (Consumer Discretionary) |
5,368,000 | 342,857 | ||||||||||
| Oi Wah Pawnshop Credit Holdings Ltd. (Banking) |
7,680,000 | 490,526 | ||||||||||
| PetroChina Co. Ltd. (Class “H” Shares) (Energy) |
1,440,000 | 943,891 | ||||||||||
| Pico Far East Holdings Ltd. (Consumer Discretionary) |
1,730,000 | 468,771 | ||||||||||
| Qingdao Port International Co. Ltd. (Class “H” Shares) (Industrials) |
4,248,000 | 1,896,514 | ||||||||||
| Shimao Property Holdings Ltd. (Real Estate-Developers) |
411,500 | 731,669 | ||||||||||
| Sino Land Co. Ltd. (Real Estate-Developers) |
596,000 | 873,615 | ||||||||||
| Sinomax Group Ltd. (Consumer Discretionary) |
13,310,000 | 1,391,101 | ||||||||||
| Sinopec Engineering Group Co. Ltd. (Class “H” Shares) (Industrials) |
2,739,000 | 2,339,621 | ||||||||||
| SITC International Holdings Co. Ltd. (Industrials) |
2,021,000 | 1,071,775 | ||||||||||
| Skyworth Digital Holdings Ltd. (Consumer Discretionary) |
2,846,025 | 1,858,167 | ||||||||||
| Spring Real Estate Investment Trust (Real Estate Investment Trusts) |
1,632,000 | 638,055 | ||||||||||
| Springland International Holdings Ltd. (Consumer Discretionary) |
1,608,000 | 371,394 | ||||||||||
| Sun Hung Kai Properties Ltd. (Financials) |
79,000 | 954,110 | ||||||||||
| Time Watch Investments Ltd. (Consumer Discretionary) |
2,404,000 | 335,007 | ||||||||||
| TK Group Holdings Ltd. (Industrials) |
3,786,000 | 1,074,729 | ||||||||||
| Wonderful Sky Financial Group Holdings Ltd. (Consumer Discretionary) |
2,344,000 | 629,095 | ||||||||||
| Yangtze Optical Fibre and Cable Joint Stock Ltd. Co. (Class “H” Shares) (Information Technology) |
1,322,000 | 1,603,448 | ||||||||||
| Yangzijiang Shipbuilding Holdings Ltd. (Telecommunication Services) |
1,737,800 | 1,348,177 | ||||||||||
| Yuexiu Real Estate Investment Trust (Real Estate Investment Trusts) |
441,000 | 236,716 | ||||||||||
|
|
|
|||||||||||
| 76,914,241 | ||||||||||||
|
|
|
|||||||||||
| INDONESIA — 0.6% |
||||||||||||||
| PT Bank Mandiri Persero Tbk (Banking) |
923,300 | 619,552 | ||||||||||||
| PT Nusa Raya Cipta Tbk (Industrials) |
1,482,800 | 67,229 | ||||||||||||
|
|
|
|||||||||||||
| 686,781 | ||||||||||||||
|
|
|
|||||||||||||
| MALAYSIA — 1.8% |
||||||||||||||
| Airasia Bhd (Industrials) |
2,167,600 | 651,264 | ||||||||||||
| Mah Sing Group Bhd (Real Estate-Developers) |
1,722,625 | 581,765 | ||||||||||||
| Nam Cheong Ltd. (Industrials) |
2,717,300 | 258,717 | ||||||||||||
| Signature International Bhd (Consumer Discretionary) |
730,300 | 312,974 | ||||||||||||
| UOA Development Bhd (Real Estate-Developers) |
751,300 | 360,470 | ||||||||||||
|
|
|
|||||||||||||
| 2,165,190 | ||||||||||||||
|
|
|
|||||||||||||
| PHILIPPINES — 0.7% |
||||||||||||||
| Leisure & Resorts World Corp. (Consumer Discretionary) |
1,593,200 | 258,339 | ||||||||||||
| Premium Leisure Corp. (Diversified Financial Services) |
10,364,000 | 140,962 | ||||||||||||
| Semirara Mining and Power Corp. (Energy) |
181,540 | 526,622 | ||||||||||||
|
|
|
|||||||||||||
| 925,923 | ||||||||||||||
|
|
|
|||||||||||||
| SINGAPORE — 5.1% |
||||||||||||||
| AIMS AMP Capital Industrial REIT (Real Estate Investment Trusts) |
267,056 | 258,976 | ||||||||||||
| Asian Pay Television Trust (Consumer Discretionary) |
1,053,300 | 475,430 | ||||||||||||
| CapitaLand Commercial Trust Ltd. (Real Estate Investment Trusts) |
505,600 | 481,388 | ||||||||||||
| CapitaLand Retail China Trust (Real Estate Investment Trusts) |
334,300 | 351,299 | ||||||||||||
| China Merchants Holdings Pacific Ltd. (Industrials) |
655,000 | 404,207 | ||||||||||||
| Croesus Retail Trust (Real Estate Investment Trusts) |
825,158 | 471,386 | ||||||||||||
| DBS Group Holdings Ltd. (Banking) |
173,500 | 2,042,256 | ||||||||||||
| Ezion Holdings Ltd. (Energy) |
1,285,100 | 552,867 | ||||||||||||
| Frasers Commercial Trust (Real Estate Investment Trusts) |
697,200 | 624,476 | ||||||||||||
| Wing Tai Holdings Ltd. (Real Estate-Developers) |
487,400 | 603,277 | ||||||||||||
|
|
|
|||||||||||||
| 6,265,562 | ||||||||||||||
|
|
|
|||||||||||||
| SOUTH KOREA — 7.4% |
||||||||||||||
| BGF retail Co. Ltd. (Consumer Staples) |
7,749 | 1,133,388 | ||||||||||||
| Binggrae Co. Ltd. (Consumer Staples) |
1,959 | 114,444 | ||||||||||||
| Dongbu Insurance Co. Ltd. (Insurance) |
32,657 | 1,957,944 | ||||||||||||
| GS Retail Co. Ltd. (Consumer Staples) |
30,172 | 1,384,379 | ||||||||||||
| It’s Skin Co. Ltd.* (Retail) |
704 | 91,861 | ||||||||||||
| Korea Electric Power Corp. (Utilities) |
28,437 | 1,212,614 | ||||||||||||
| Korea Ratings Corp. (Banking) |
2,615 | 112,401 | ||||||||||||
| Maeil Dairy Industry Co. Ltd. (Consumer Staples) |
1,778 | 67,023 | ||||||||||||
| SK Hynix, Inc. (Semiconductors & Semiconductor Equipment) |
27,993 | 734,113 | ||||||||||||
| SK Telecom Co. Ltd. (Telecommunication Services) |
11,877 | 2,182,844 | ||||||||||||
|
|
|
|||||||||||||
| 8,991,011 | ||||||||||||||
|
|
|
|||||||||||||
| TAIWAN — 3.5% |
||||||||||||||
| Farglory Land Development Co. Ltd. (Real Estate-Developers) |
338,000 | 352,437 | ||||||||||||
| Johnson Health Tech Co. Ltd. (Consumer Discretionary) |
163,825 | 263,341 | ||||||||||||
| Largan Precision Co. Ltd. (Information Technology) |
17,000 | 1,174,841 | ||||||||||||
| Mega Financial Holding Co. Ltd. (Banking) |
884,410 | 572,159 | ||||||||||||
| Mercuries Life Insurance Co. Ltd. (Financials) |
434,653 | 238,188 | ||||||||||||
| Superalloy Industrial Co. Ltd. (Consumer Discretionary) |
119,955 | 444,075 | ||||||||||||
| Taiwan Semiconductor Manufacturing Co. Ltd. (Semiconductors & Semiconductor Equipment) |
271,000 | 1,179,803 | ||||||||||||
|
|
|
|||||||||||||
| 4,224,844 | ||||||||||||||
|
|
|
|||||||||||||
| THAILAND — 3.0% |
||||||||||||
| AP Thailand PCL (Real Estate-Developers) |
2,238,000 | 332,730 | ||||||||||
| AP Thailand PCL, NVDR (Real Estate-Developers) |
213,100 | 31,682 | ||||||||||
| Bangchak Petroleum PCL (The) (Energy) |
1,318,700 | 1,209,312 | ||||||||||
| Digital Telecommunication Growth Infrastructure Fund (Class “F” Shares) (Telecommunication Services) |
1,034,600 | 356,511 | ||||||||||
| Jasmine Broadband Internet Infrastructure Fund (Class “F” Shares) (Capital Markets) |
1,387,500 | 352,803 | ||||||||||
| Namyong Terminal PCL (Industrials) |
33,200 | 14,577 | ||||||||||
| Somboon Advance Technology PCL (Consumer Discretionary) |
1,228,400 | 553,011 | ||||||||||
| Star Petroleum Refining PCL* (Oil & Gas) |
326,200 | 82,037 | ||||||||||
| Supalai PCL (Real Estate-Developers) |
3,100 | 1,568 | ||||||||||
| Supalai PCL (Real Estate-Developers) |
1,431,200 | 723,853 | ||||||||||
|
|
|
|||||||||||
| 3,658,084 | ||||||||||||
|
|
|
|||||||||||
| TOTAL COMMON STOCKS |
|
103,831,636 | ||||||||||
|
|
|
|||||||||||
| Units | ||||||||||||
| PARTICIPATORY NOTES† — 3.6% |
||||||||||||
| China (including Hong Kong and Macau SAR) |
||||||||||||
| Midea Group Ltd. (Class “A” Shares), expiring 12/22/16 (Financials) |
175,600 | 887,519 | ||||||||||
| Daqin Railway Co. Ltd. (Class “A” Shares), expiring 03/11/16 (Industrials) |
200,000 | 265,492 | ||||||||||
| Gree Electric Appliances, Inc. of Zhuhai (Class “A” Shares), expiring 03/10/16 (Industrials) |
880,747 | 3,099,216 | ||||||||||
| Haier Co. Ltd. (Class “A” Shares), expiring 02/23/16 (Consumer Staples) |
57,900 | 88,451 | ||||||||||
|
|
|
|||||||||||
| TOTAL PARTICIPATORY NOTES |
|
4,340,678 | ||||||||||
|
|
|
|||||||||||
| Shares | ||||||||||||
| PREFERENCE SHARES — 10.5% |
||||||||||||
| South Korea |
||||||||||||
| Amorepacific Corp. (Consumer Staples) |
17,759 | 3,483,493 | ||||||||||
| CJ CheilJedang Corp. (Consumer Staples) |
2,002 | 373,065 | ||||||||||
| Hyundai Motor Co. (Consumer Discretionary) |
6,994 | 596,478 | ||||||||||
| LG Corp. (Industrials) |
52,161 | 2,088,575 | ||||||||||
| Samsung Electronics Co. Ltd. (Semiconductors & Semiconductor Equipment) |
3,337 | 3,104,914 | ||||||||||
| Samsung Fire & Marine Insurance Co. Ltd. (Insurance) |
19,417 | 3,129,771 | ||||||||||
|
|
|
|||||||||||
| TOTAL PREFERENCE SHARES |
|
12,776,296 | ||||||||||
|
|
|
|||||||||||
| Units | ||||||||||||
| WARRANTS* (a) |
||||||||||||
| Malaysia |
||||||||||||
| Mah Sing Group Bhd, expiring 02/21/20 |
423,637 | 15,294 | ||||||||||
|
|
|
|||||||||||
| TOTAL LONG-TERM INVESTMENTS |
|
120,963,904 | ||||||||||
|
|
|
|||||||||||
| SHORT-TERM INVESTMENT — 1.9% |
||||||||||||
| Shares | ||||||||||||
| MONEY MARKET MUTUAL FUND |
||||||||||||
| JPMorgan Prime Money Market Fund/Premier |
2,372,894 | 2,372,894 | ||||||||||
|
|
|
|||||||||||
| TOTAL INVESTMENTS — 101.3% |
123,336,798 | |||||||||||||
| Liabilities in excess of other assets — (1.3)% |
(1,556,509 | ) | ||||||||||||
|
|
|
|||||||||||||
| NET ASSETS — 100.0% |
$ | 121,780,289 | ||||||||||||
|
|
|
The following abbreviations are used in the quarterly report:
| NVDR | Non-Voting Depository Receipt | |
| REIT | Real Estate Investment Trust |
| * | Non-income producing security. |
| † | Participatory notes represented 3.6% of net assets and BOCI Financial Products Limited is the counterparty to the Fund and issuer of the securities. |
| (a) | The amount represent fair value of derivative instruments subject to equity contracts risk exposure as of December 31, 2015. |
| (b) | The United States federal income tax basis of investments and net unrealized depreciation were as follows: |
| Tax Basis |
$ | 127,599,762 | ||
|
|
|
|||
| Appreciation |
9,811,576 | |||
| Depreciation |
(14,074,540 | ) | ||
|
|
|
|||
| Net Unrealized Depreciation |
$ | (4,262,964 | ) | |
|
|
|
The book basis may differ from tax basis due to certain tax-related adjustments.
Various inputs are used in determining the value of the Fund’s investments. These inputs are summarized in the three broad levels listed below.
Level 1 - quoted prices generally in active markets for identical securities.
Level 2 - quoted prices for similar securities, interest rates and yield curves, prepayment speeds, foreign currency exchange rates and other observable inputs.
Level 3 - unobservable inputs for securities valued in accordance with Board approved fair valuation procedures.
The following is a summary of the inputs used as of December 31, 2015 in valuing such portfolio securities:
| Level 1 | Level 2 | Level 3 | ||||||||||
| Investments in Securities |
||||||||||||
| Common Stocks |
||||||||||||
| China (including Hong Kong and Macau SAR) |
$ | 75,154,095 | $ | — | $ | 1,760,146 | ||||||
| Indonesia |
686,781 | — | — | |||||||||
| Malaysia |
2,165,190 | — | — | |||||||||
| Philippines |
925,923 | — | — | |||||||||
| Singapore |
6,265,562 | — | — | |||||||||
| South Korea |
8,991,011 | — | — | |||||||||
| Taiwan |
4,224,844 | — | — | |||||||||
| Thailand |
33,250 | 3,624,834 | — | |||||||||
| Participatory Notes |
||||||||||||
| China (including Hong Kong and Macau SAR) |
— | 4,340,678 | — | |||||||||
| Preference Shares |
||||||||||||
| South Korea |
12,776,296 | — | — | |||||||||
| Warrants |
||||||||||||
| Malaysia |
— | — | 15,294 | |||||||||
| Money Market Mutual Fund |
2,372,894 | — | — | |||||||||
|
|
|
|
|
|
|
|||||||
| Total |
$ | 113,595,846 | $ | 7,965,512 | $ | 1,775,440 | ||||||
|
|
|
|
|
|
|
|||||||
The following is a reconciliation of assets in which unobservable inputs (Level 3) were used in determining fair value:
| Common Stocks | Warrants | |||||||
| Balance as of 03/31/15 |
$ | — | $ | — | ||||
| Realized gain (loss) |
1,028,711 | — | ||||||
| Change in unrealized appreciation (depreciation)* |
(638,400 | ) | (3,008 | ) | ||||
| Purchases |
— | — | ||||||
| Sales |
(3,438,490 | ) | — | |||||
| Accrued discount/premium |
— | — | ||||||
| Transfers into Level 3 |
4,808,325 | 18,302 | ||||||
| Transfers out of Level 3 |
— | — | ||||||
|
|
|
|
|
|||||
| Balance as of 12/31/15 |
$ | 1,760,146 | $ | 15,294 | ||||
|
|
|
|
|
|||||
| * | Of which, $(641,408) was relating to securities held at the reporting period end. |
Level 3 securities as presented in the table above are being fair valued using pricing methodologies approved by Board, which contain unobservable inputs as follows:
| Level 3 Securities |
Fair Value as of December 31, 2015 |
Valuation Methodology |
Unobservable Inputs | |||||
| Common Stocks |
1,760,146 | Stale Pricing | Unadjusted Last Trade Price | |||||
| Warrants |
15,294 | Stale Pricing | Unadjusted Last Trade Price | |||||
|
|
|
|||||||
| $ | 1,775,440 | |||||||
|
|
|
|||||||
It is the Fund’s policy to recognize transfers in and transfers out at the fair value as of the beginning of period. At the reporting period end, securities transferred levels as follows:
| Investments in Securities |
Amount Transferred | Level Transfer | Logic | |||||
| Common Stocks |
$ | 4,808,325 | L1 to L3 | Last Trade Price to Stale Pricing | ||||
| Warrants |
$ | 18,302 | L1 to L3 | Last Trade Price to Stale Pricing | ||||
| The industry classification of investments and liabilities in excess of other assets shown as a percentage of net assets as of December 31, 2015 were as follows: | ||||
| Industrials |
17.4 | % | ||
| Real Estate-Developers |
16.9 | |||
| Consumer Discretionary |
13.5 | |||
| Banking |
12.6 | |||
| Insurance |
7.8 | |||
| Consumer Staples |
5.5 | |||
| Utilities |
5.4 | |||
| Telecommunication Services |
4.2 | |||
| Semiconductors & Semiconductor Equipment |
4.1 | |||
| Energy |
3.1 | |||
| Real Estate Investment Trusts |
2.9 | |||
| Financials |
2.4 | |||
| Information Technology |
2.2 | |||
| Money Market Mutual Fund |
1.9 | |||
| Materials |
0.8 | |||
| Capital Markets |
0.3 | |||
| Diversified Financial Services |
0.1 | |||
| Retail |
0.1 | |||
| Oil & Gas |
0.1 | |||
|
|
|
|||
| 101.3 | ||||
| Liabilities in excess of other assets |
(1.3 | ) | ||
|
|
|
|||
| 100.0 | % | |||
|
|
|
|||
Notes to Schedule of Investments (Unaudited)
Securities Valuation: The Fund holds portfolio securities and other assets that are fair valued at the close of each day the New York Stock Exchange (“NYSE”) is open for trading. Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants on the measurement date. The Board of Directors (the “Board”) has adopted Valuation Procedures for security valuation under which fair valuation responsibilities have been delegated to the Investment Manager, Value Partners Hong Kong Limited. Under the current Valuation Procedures, the established Valuation Committee is responsible for supervising the valuation of portfolio securities and other assets. The Valuation Procedures permit the Fund to utilize independent pricing vendor services, quotations from market makers and alternative valuation methods when market quotations are not readily available or not deemed representative of fair value. A record of the Valuation Committee’s actions is subject to the Board’s review, approval, and ratification at its next regularly-scheduled quarterly meeting.
Various inputs determine how the Fund’s investments are valued, all of which are categorized according to the three broad levels (Level 1, 2, or 3) detailed in the table following the Schedule of Investments.
Common stocks and preference shares, exchange-traded funds, and derivative instruments such as futures and options that are traded on a national securities exchange are valued at the last sale price as of the close of trading on the applicable exchange. Securities traded via NASDAQ are valued at the NASDAQ official closing price. To the extent these securities are valued at the last sale price or NASDAQ official closing price, they are classified as Level 1 of the fair value hierarchy.
Participatory Notes (P-notes) are generally valued based upon the value of a related underlying security that trades actively in the market and are classified as Level 2 in the fair value hierarchy.
In the event that no sale or official closing price on valuation date exists, these securities are generally valued at the mean between the last reported bid and ask prices, or at the last bid price in absence of an ask price. These securities are classified as Level 2 of the fair value hierarchy.
Common stocks and preference shares traded on foreign securities exchanges are valued using pricing vendor services that provide model prices derived using adjustment factors based on information such as local closing price, relevant general and sector indices, currency fluctuations, depositary receipts, and futures, as applicable. Securities valued using such model prices are classified as Level 2 of the fair value hierarchy. Such securities are valued using model prices to the extent that the valuation meets the established confidence level for each security. If the confidence level is not met or the vendor does not provide a model price, securities are valued in accordance with exchange-traded common stocks and preference shares discussed above.
Investments in open end, non-exchange-traded mutual funds are valued at their net asset values as of the close of the NYSE on the date of valuation. These securities are classified as Level 1 in the fair value hierarchy since they may be purchased or sold at their net asset value on the date of valuation.
Portfolio securities and other assets that cannot be priced according to the methods described above are valued based on pricing methodologies approved by the Board. In the event that unobservable inputs are used when determining such valuations, the securities will be classified as Level 3 of the fair value hierarchy.
When determining the fair valuation of securities, some of the factors influencing the valuation include: the nature of any restrictions on disposition of the securities; assessment of the general liquidity of the securities; the issuer’s financial condition and the markets in which it does business; the cost of the investment; the size of the holding and the capitalization of the issuer; the prices of any recent transactions or bids/offers for such securities or any comparable securities; any available analyst media or other reports or information deemed reliable by the investment manager regarding the issuer or the markets or industry in which it operates. Using fair value to price securities may result in a value that is different from a security’s most recent closing price and from the price used by other mutual funds to calculate their net asset values.
Market values of investments traded in foreign currency are translated into U.S. dollars at the current rates of exchange.
Other information regarding the Fund is available in the Fund’s most recent Report to Shareholders. This information is available on the Securities and Exchange Commission’s website (www.sec.gov).
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.
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
| (Registrant) The Asia Pacific Fund, Inc. | ||
| By (Signature and Title)* | /s/ Deborah A. Docs | |
| Deborah A. Docs | ||
| Secretary of the Fund | ||
Date February 18, 2016
Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated.
| By (Signature and Title)* | /s/ Raymond Tam | |
| Raymond Tam | ||
| President and Principal Executive Officer | ||
| Date February 18, 2016 | ||
| By (Signature and Title)* | /s/ M. Sadiq Peshimam | |
| M. Sadiq Peshimam | ||
| Treasurer and Principal Financial Officer | ||
| Date February 18, 2016 | ||
| * | Print the name and title of each signing officer under his or her signature. |