UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM N-Q
QUARTERLY SCHEDULE OF PORTFOLIO HOLDINGS OF REGISTERED
MANAGEMENT INVESTMENT COMPANY
|
Investment Company Act file number |
811-08388 | |||||||
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| ||||||||
|
Morgan Stanley Asia-Pacific Fund, Inc. | ||||||||
|
(Exact name of registrant as specified in charter) | ||||||||
|
| ||||||||
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522 Fifth Avenue, New York, New York |
|
10036 | ||||||
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(Address of principal executive offices) |
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(Zip code) | ||||||
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John H. Gernon 522 Fifth Avenue, New York, New York 10036 | ||||||||
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(Name and address of agent for service) | ||||||||
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| ||||||||
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Registrant’s telephone number, including area code: |
212-296-0289 |
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Date of fiscal year end: |
December 31, |
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Date of reporting period: |
September 30, 2015 |
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Item 1. Schedule of Investments.
The Fund’s schedule of investments as of the close of the reporting period prepared pursuant to Rule 12-12 of Regulation S-X is as follows:
Morgan Stanley Asia-Pacific Fund, Inc.
Portfolio of Investments
Third Quarter Report
September 30, 2015 (unaudited)
|
|
|
Shares |
|
Value |
| |
|
Common Stocks (98.0%) |
|
|
|
|
| |
|
Australia (14.8%) |
|
|
|
|
| |
|
Banks |
|
|
|
|
| |
|
National Australia Bank Ltd. |
|
290,868 |
|
$ |
6,172 |
|
|
Westpac Banking Corp. |
|
169,239 |
|
3,558 |
| |
|
|
|
|
|
9,730 |
| |
|
Commercial Services & Supplies |
|
|
|
|
| |
|
Brambles Ltd. |
|
519,127 |
|
3,559 |
| |
|
|
|
|
|
|
| |
|
Health Care Equipment & Supplies |
|
|
|
|
| |
|
ResMed, Inc. |
|
525,665 |
|
2,685 |
| |
|
|
|
|
|
|
| |
|
Information Technology Services |
|
|
|
|
| |
|
Computershare Ltd. |
|
303,590 |
|
2,264 |
| |
|
|
|
|
|
|
| |
|
Insurance |
|
|
|
|
| |
|
AMP Ltd. |
|
1,355,234 |
|
5,309 |
| |
|
QBE Insurance Group Ltd. |
|
271,479 |
|
2,465 |
| |
|
|
|
|
|
7,774 |
| |
|
Real Estate Investment Trusts (REITs) |
|
|
|
|
| |
|
Mirvac Group REIT |
|
2,212,282 |
|
2,679 |
| |
|
|
|
|
|
|
| |
|
Real Estate Management & Development |
|
|
|
|
| |
|
Lend Lease Group REIT |
|
296,165 |
|
2,617 |
| |
|
|
|
|
|
31,308 |
| |
|
China (20.3%) |
|
|
|
|
| |
|
Automobiles |
|
|
|
|
| |
|
Chongqing Changan Automobile Co., Ltd. B Shares |
|
354,500 |
|
601 |
| |
|
|
|
|
|
|
| |
|
Banks |
|
|
|
|
| |
|
Bank of China Ltd. H Shares (a) |
|
13,769,000 |
|
5,960 |
| |
|
China Construction Bank Corp. H Shares (a) |
|
6,091,560 |
|
4,080 |
| |
|
|
|
|
|
10,040 |
| |
|
Chemicals |
|
|
|
|
| |
|
Nan Ya Plastics Corp. |
|
475,000 |
|
806 |
| |
|
|
|
|
|
|
| |
|
Construction & Engineering |
|
|
|
|
| |
|
China Machinery Engineering Corp. H Shares (a) |
|
616,000 |
|
534 |
| |
|
|
|
|
|
|
| |
|
Diversified Consumer Services |
|
|
|
|
| |
|
TAL Education Group ADR (b) |
|
27,388 |
|
880 |
| |
|
|
|
|
|
|
| |
|
Food Products |
|
|
|
|
| |
|
China Mengniu Dairy Co., Ltd. (a) |
|
224,000 |
|
791 |
| |
|
|
|
|
|
|
| |
|
Independent Power Producers & Energy Traders |
|
|
|
|
| |
|
Huadian Power International Corp., Ltd. H Shares (a) |
|
984,000 |
|
773 |
| |
|
|
|
|
|
|
| |
|
Insurance |
|
|
|
|
| |
|
China Life Insurance Co., Ltd. H Shares (a) |
|
697,000 |
|
2,433 |
| |
|
China Pacific Insurance Group Co., Ltd. H Shares (a) |
|
466,200 |
|
1,726 |
| |
|
China Taiping Insurance Holdings Co., Ltd. (a)(b) |
|
271,000 |
|
849 |
|
|
|
|
|
|
5,008 |
|
|
Internet & Catalog Retail |
|
|
|
|
|
|
JD.com, Inc. ADR (b) |
|
52,342 |
|
1,364 |
|
|
|
|
|
|
|
|
|
Internet Software & Services |
|
|
|
|
|
|
NetEase, Inc. ADR |
|
5,455 |
|
655 |
|
|
Tencent Holdings Ltd. (a) |
|
574,600 |
|
9,664 |
|
|
|
|
|
|
10,319 |
|
|
Pharmaceuticals |
|
|
|
|
|
|
CSPC Pharmaceutical Group Ltd. (a) |
|
786,000 |
|
693 |
|
|
Sihuan Pharmaceutical Holdings Group Ltd. (a)(c) |
|
2,581,000 |
|
1,197 |
|
|
|
|
|
|
1,890 |
|
|
Real Estate Management & Development |
|
|
|
|
|
|
China Overseas Land & Investment Ltd. (a) |
|
574,000 |
|
1,752 |
|
|
|
|
|
|
|
|
|
Textiles, Apparel & Luxury Goods |
|
|
|
|
|
|
Shenzhou International Group Holdings Ltd. (a) |
|
176,000 |
|
910 |
|
|
|
|
|
|
|
|
|
Transportation Infrastructure |
|
|
|
|
|
|
Shenzhen International Holdings Ltd. (a) |
|
430,500 |
|
594 |
|
|
|
|
|
|
|
|
|
Wireless Telecommunication Services |
|
|
|
|
|
|
China Mobile Ltd. (a) |
|
569,000 |
|
6,791 |
|
|
|
|
|
|
43,053 |
|
|
Hong Kong (8.4%) |
|
|
|
|
|
|
Banks |
|
|
|
|
|
|
BOC Hong Kong Holdings Ltd. |
|
833,000 |
|
2,464 |
|
|
|
|
|
|
|
|
|
Diversified Financial Services |
|
|
|
|
|
|
Hong Kong Exchanges and Clearing Ltd. |
|
57,500 |
|
1,323 |
|
|
|
|
|
|
|
|
|
Diversified Telecommunication Services |
|
|
|
|
|
|
HKT Trust & HKT Ltd. |
|
1,028,340 |
|
1,225 |
|
|
|
|
|
|
|
|
|
Industrial Conglomerates |
|
|
|
|
|
|
CK Hutchison Holdings Ltd. |
|
393,768 |
|
5,128 |
|
|
|
|
|
|
|
|
|
Insurance |
|
|
|
|
|
|
AIA Group Ltd. |
|
608,600 |
|
3,169 |
|
|
|
|
|
|
|
|
|
Real Estate Management & Development |
|
|
|
|
|
|
Cheung Kong Property Holdings Ltd. |
|
332,768 |
|
2,439 |
|
|
|
|
|
|
|
|
|
Specialty Retail |
|
|
|
|
|
|
L’Occitane International SA |
|
172,250 |
|
360 |
|
|
|
|
|
|
|
|
|
Textiles, Apparel & Luxury Goods |
|
|
|
|
|
|
Samsonite International SA |
|
551,100 |
|
1,809 |
|
|
|
|
|
|
17,917 |
|
|
India (12.1%) |
|
|
|
|
|
|
Automobiles |
|
|
|
|
|
|
Maruti Suzuki India Ltd. |
|
37,157 |
|
2,659 |
|
|
|
|
|
|
|
|
|
Banks |
|
|
|
|
|
|
HDFC Bank Ltd. |
|
116,804 |
|
2,286 |
|
|
IndusInd Bank Ltd. |
|
165,291 |
|
2,380 |
|
|
|
|
|
|
4,666 |
|
|
Construction & Engineering |
|
|
|
|
|
|
Larsen & Toubro Ltd. |
|
68,806 |
|
1,541 |
|
|
|
|
|
|
|
|
|
Construction Materials |
|
|
|
|
|
|
Shree Cement Ltd. (b) |
|
9,880 |
|
1,767 |
|
|
|
|
|
|
|
|
|
Consumer Finance |
|
|
|
|
|
|
Shriram Transport Finance Co., Ltd. |
|
129,370 |
|
1,827 |
|
|
|
|
|
|
|
|
|
Information Technology Services |
|
|
|
|
|
|
Tata Consultancy Services Ltd. |
|
30,580 |
|
1,207 |
|
|
|
|
|
|
|
|
|
Machinery |
|
|
|
|
|
|
Ashok Leyland Ltd. |
|
2,286,718 |
|
3,227 |
|
|
|
|
|
|
|
|
|
Media |
|
|
|
|
|
|
Inox Leisure Ltd. (b) |
|
322,750 |
|
1,125 |
|
|
|
|
|
|
|
|
|
Oil, Gas & Consumable Fuels |
|
|
|
|
|
|
Bharat Petroleum Corp., Ltd. |
|
114,513 |
|
1,487 |
|
|
|
|
|
|
|
|
|
Personal Products |
|
|
|
|
|
|
Marico Ltd. |
|
233,099 |
|
1,439 |
|
|
|
|
|
|
|
|
|
Pharmaceuticals |
|
|
|
|
|
|
Glenmark Pharmaceuticals Ltd. |
|
122,601 |
|
1,967 |
|
|
Sun Pharmaceutical Industries Ltd. |
|
59,257 |
|
786 |
|
|
|
|
|
|
2,753 |
|
|
Transportation Infrastructure |
|
|
|
|
|
|
Gateway Distriparks Ltd. |
|
263,211 |
|
1,432 |
|
|
|
|
|
|
|
|
|
Wireless Telecommunication Services |
|
|
|
|
|
|
Idea Cellular Ltd. |
|
269,735 |
|
616 |
|
|
|
|
|
|
25,746 |
|
|
Indonesia (2.7%) |
|
|
|
|
|
|
Diversified Telecommunication Services |
|
|
|
|
|
|
Link Net Tbk PT (b) |
|
2,281,000 |
|
701 |
|
|
XL Axiata Tbk PT (b) |
|
5,181,100 |
|
926 |
|
|
|
|
|
|
1,627 |
|
|
Food Products |
|
|
|
|
|
|
Nippon Indosari Corpindo Tbk PT |
|
4,421,700 |
|
355 |
|
|
|
|
|
|
|
|
|
Media |
|
|
|
|
|
|
Surya Citra Media Tbk PT |
|
4,654,900 |
|
876 |
|
|
Multi-line Retail |
|
|
|
|
|
|
Matahari Department Store Tbk PT |
|
1,507,400 |
|
1,661 |
|
|
|
|
|
|
|
|
|
Pharmaceuticals |
|
|
|
|
|
|
Kalbe Farma Tbk PT |
|
7,245,700 |
|
683 |
|
|
|
|
|
|
|
|
|
Trading Companies & Distributors |
|
|
|
|
|
|
AKR Corporindo Tbk PT |
|
1,196,500 |
|
479 |
|
|
|
|
|
|
5,681 |
|
|
Korea, Republic of (16.0%) |
|
|
|
|
|
|
Aerospace & Defense |
|
|
|
|
|
|
Korea Aerospace Industries Ltd. |
|
18,254 |
|
1,052 |
|
|
LIG Nex1 Co., Ltd. (b) |
|
5,292 |
|
339 |
|
|
|
|
|
|
1,391 |
|
|
Automobiles |
|
|
|
|
|
|
Kia Motors Corp. |
|
58,538 |
|
2,655 |
|
|
|
|
|
|
|
|
|
Banks |
|
|
|
|
|
|
KB Financial Group, Inc. |
|
54,890 |
|
1,629 |
|
|
|
|
|
|
|
|
|
Chemicals |
|
|
|
|
|
|
LG Chem Ltd. |
|
7,387 |
|
1,795 |
|
|
Lotte Chemical Corp. |
|
5,062 |
|
1,163 |
|
|
|
|
|
|
2,958 |
|
|
Commercial Services & Supplies |
|
|
|
|
|
|
KEPCO Plant Service & Engineering Co., Ltd. |
|
13,450 |
|
1,375 |
|
|
|
|
|
|
|
|
|
Household Durables |
|
|
|
|
|
|
Coway Co., Ltd. |
|
35,603 |
|
2,523 |
|
|
|
|
|
|
|
|
|
Industrial Conglomerates |
|
|
|
|
|
|
SK Holdings Co., Ltd. |
|
7,535 |
|
1,558 |
|
|
|
|
|
|
|
|
|
Insurance |
|
|
|
|
|
|
Samsung Life Insurance Co., Ltd. |
|
18,757 |
|
1,567 |
|
|
|
|
|
|
|
|
|
Internet Software & Services |
|
|
|
|
|
|
NAVER Corp. |
|
2,780 |
|
1,208 |
|
|
|
|
|
|
|
|
|
Media |
|
|
|
|
|
|
Cheil Worldwide, Inc. (b) |
|
27,757 |
|
429 |
|
|
|
|
|
|
|
|
|
Personal Products |
|
|
|
|
|
|
Amorepacific Corp. |
|
6,821 |
|
2,226 |
|
|
Cosmax, Inc. |
|
3,337 |
|
608 |
|
|
|
|
|
|
2,834 |
|
|
Semiconductors & Semiconductor Equipment |
|
|
|
|
|
|
SK Hynix, Inc. |
|
66,248 |
|
1,893 |
|
|
|
|
|
|
|
|
|
Software |
|
|
|
|
|
|
Nexon Co., Ltd. |
|
109,700 |
|
1,469 |
|
|
|
|
|
|
|
|
|
Specialty Retail |
|
|
|
|
|
|
Hotel Shilla Co., Ltd. |
|
25,232 |
|
2,464 |
|
|
Tech Hardware, Storage & Peripherals |
|
|
|
|
|
|
Samsung Electronics Co., Ltd. |
|
5,540 |
|
5,328 |
|
|
Samsung Electronics Co., Ltd. (Preference) |
|
1,460 |
|
1,137 |
|
|
|
|
|
|
6,465 |
|
|
Wireless Telecommunication Services |
|
|
|
|
|
|
SK Telecom Co., Ltd. |
|
6,785 |
|
1,503 |
|
|
|
|
|
|
33,921 |
|
|
Laos (0.4%) |
|
|
|
|
|
|
Specialty Retail |
|
|
|
|
|
|
Kolao Holdings |
|
75,504 |
|
868 |
|
|
|
|
|
|
|
|
|
Malaysia (1.1%) |
|
|
|
|
|
|
Health Care Providers & Services |
|
|
|
|
|
|
IHH Healthcare Bhd |
|
1,096,400 |
|
1,490 |
|
|
|
|
|
|
|
|
|
Insurance |
|
|
|
|
|
|
Tune Protect Group Bhd |
|
1,142,300 |
|
338 |
|
|
|
|
|
|
|
|
|
Media |
|
|
|
|
|
|
Astro Malaysia Holdings Bhd |
|
609,500 |
|
391 |
|
|
|
|
|
|
2,219 |
|
|
Philippines (3.1%) |
|
|
|
|
|
|
Banks |
|
|
|
|
|
|
BDO Unibank, Inc. |
|
318,060 |
|
705 |
|
|
Metropolitan Bank & Trust Co. |
|
568,313 |
|
993 |
|
|
Rizal Commercial Banking Corp. |
|
521,060 |
|
336 |
|
|
|
|
|
|
2,034 |
|
|
Diversified Financial Services |
|
|
|
|
|
|
Ayala Corp. |
|
53,846 |
|
886 |
|
|
Metro Pacific Investments Corp. |
|
8,351,800 |
|
891 |
|
|
STI Education Systems Holdings, Inc. |
|
15,585,000 |
|
160 |
|
|
|
|
|
|
1,937 |
|
|
Industrial Conglomerates |
|
|
|
|
|
|
DMCI Holdings, Inc. |
|
2,490,301 |
|
684 |
|
|
LT Group, Inc. |
|
2,367,000 |
|
512 |
|
|
SM Investments Corp. |
|
48,610 |
|
928 |
|
|
|
|
|
|
2,124 |
|
|
Transportation Infrastructure |
|
|
|
|
|
|
International Container Terminal Services, Inc. |
|
337,580 |
|
543 |
|
|
|
|
|
|
6,638 |
|
|
Singapore (3.2%) |
|
|
|
|
|
|
Banks |
|
|
|
|
|
|
DBS Group Holdings Ltd. |
|
134,116 |
|
1,532 |
|
|
Oversea-Chinese Banking Corp., Ltd. |
|
122,261 |
|
757 |
|
|
|
|
|
|
2,289 |
|
|
Distributors |
|
|
|
|
|
|
Jardine Cycle & Carriage Ltd. |
|
95,700 |
|
1,827 |
|
|
|
|
|
|
|
|
|
Health Care Providers & Services |
|
|
|
|
|
|
Raffles Medical Group Ltd. |
|
149,622 |
|
476 |
|
|
|
|
|
|
|
|
|
Multi-Utilities |
|
|
|
|
|
|
Keppel Infrastructure Trust (Units) (d) |
|
4,005,100 |
|
1,478 |
|
|
|
|
|
|
|
|
|
Specialty Retail |
|
|
|
|
|
|
OSIM International Ltd. |
|
654,600 |
|
749 |
|
|
|
|
|
|
6,819 |
|
|
Taiwan (14.6%) |
|
|
|
|
|
|
Diversified Financial Services |
|
|
|
|
|
|
Chailease Holding Co., Ltd. |
|
837,080 |
|
1,313 |
|
|
Fubon Financial Holding Co., Ltd. |
|
1,280,000 |
|
2,000 |
|
|
|
|
|
|
3,313 |
|
|
Electronic Equipment, Instruments & Components |
|
|
|
|
|
|
Delta Electronics, Inc. |
|
342,000 |
|
1,612 |
|
|
Hon Hai Precision Industry Co., Ltd. |
|
1,360,050 |
|
3,558 |
|
|
Largan Precision Co., Ltd. |
|
20,000 |
|
1,570 |
|
|
|
|
|
|
6,740 |
|
|
Food Products |
|
|
|
|
|
|
Uni-President Enterprises Corp. |
|
1,624,046 |
|
2,821 |
|
|
|
|
|
|
|
|
|
Internet & Catalog Retail |
|
|
|
|
|
|
momo.com, Inc. |
|
62,925 |
|
375 |
|
|
|
|
|
|
|
|
|
Internet Software & Services |
|
|
|
|
|
|
PChome Online, Inc. |
|
25,000 |
|
289 |
|
|
|
|
|
|
|
|
|
Semiconductors & Semiconductor Equipment |
|
|
|
|
|
|
Advanced Semiconductor Engineering, Inc. |
|
2,007,000 |
|
2,196 |
|
|
Advanced Semiconductor Engineering, Inc. ADR |
|
25,033 |
|
137 |
|
|
Hermes Microvision, Inc. |
|
25,584 |
|
978 |
|
|
Siliconware Precision Industries Co., Ltd. |
|
116,948 |
|
145 |
|
|
Siliconware Precision Industries Co., Ltd. ADR |
|
11,880 |
|
75 |
|
|
Taiwan Semiconductor Manufacturing Co., Ltd. |
|
1,554,592 |
|
6,204 |
|
|
|
|
|
|
9,735 |
|
|
Tech Hardware, Storage & Peripherals |
|
|
|
|
|
|
Catcher Technology Co., Ltd. |
|
242,000 |
|
2,586 |
|
|
Pegatron Corp. |
|
686,000 |
|
1,689 |
|
|
|
|
|
|
4,275 |
|
|
Textiles, Apparel & Luxury Goods |
|
|
|
|
|
|
Eclat Textile Co., Ltd. |
|
138,456 |
|
2,190 |
|
|
|
|
|
|
|
|
|
Wireless Telecommunication Services |
|
|
|
|
|
|
Taiwan Mobile Co., Ltd. |
|
417,000 |
|
1,274 |
|
|
|
|
|
|
31,012 |
|
|
Thailand (1.3%) |
|
|
|
|
| |
|
Hotels, Restaurants & Leisure |
|
|
|
|
| |
|
Minor International PCL (Foreign) |
|
1,228,920 |
|
976 |
| |
|
|
|
|
|
|
| |
|
Real Estate Management & Development |
|
|
|
|
| |
|
Land and Houses PCL (Foreign) |
|
1,685,480 |
|
375 |
| |
|
|
|
|
|
|
| |
|
Wireless Telecommunication Services |
|
|
|
|
| |
|
Advanced Info Service PCL (Foreign) |
|
143,700 |
|
896 |
| |
|
Total Access Communication PCL (Foreign) |
|
192,900 |
|
308 |
| |
|
Total Access Communication PCL NVDR |
|
71,600 |
|
114 |
| |
|
|
|
|
|
1,318 |
| |
|
|
|
|
|
2,669 |
| |
|
Total Common Stocks (Cost $200,824) |
|
|
|
207,851 |
| |
|
Short-Term Investment (1.3%) |
|
|
|
|
| |
|
Investment Company (1.3%) |
|
|
|
|
| |
|
Morgan Stanley Institutional Liquidity Funds - Money Market Portfolio - Institutional Class (e) (Cost $2,856) |
|
2,856,398 |
|
2,856 |
| |
|
Total Investments (99.3%) (Cost $203,680) (f)(g)(h) |
|
|
|
210,707 |
| |
|
Other Assets in Excess of Liabilities (0.7%) |
|
|
|
1,590 |
| |
|
Net Assets (100.0%) |
|
|
|
$ |
212,297 |
|
|
(a) |
Security trades on the Hong Kong exchange. |
|
(b) |
Non-income producing security. |
|
(c) |
Security has been deemed illiquid at September 30, 2015. |
|
(d) |
Consists of one or more classes of securities traded together as a unit; stocks with attached warrants. |
|
(e) |
The Fund invests in the Institutional Class of the Morgan Stanley Institutional Liquidity Funds - Money Market Portfolio - (the “Liquidity Funds”), an open-end management investment company managed by the Adviser. Advisory fees paid by the Fund are reduced by an amount equal to its pro-rata share of the advisory and administrative service fees paid by the Fund due to its investment in the Liquidity Funds. For the nine months ended September 30, 2015, advisory fees paid were reduced by approximately $3,000 relating to the Fund’s investment in the Liquidity Funds. |
|
(f) |
Securities are available for collateral in connection with open foreign currency forward exchange contracts. |
|
(g) |
The approximate fair value and percentage of net assets, $203,204,000 and 95.7%, respectively, represent the securities that have been fair valued under the fair valuation policy for international investments as described in the Notes to the Portfolio of Investments. |
|
(h) |
At September 30, 2015, the aggregate cost for Federal income tax purposes approximates the aggregate cost for book purposes. The aggregate gross unrealized appreciation is approximately $27,719,000 and the aggregate gross unrealized depreciation is approximately $20,692,000 resulting in net unrealized appreciation of approximately $7,027,000. |
|
ADR |
American Depositary Receipt. |
|
NVDR |
Non-Voting Depositary Receipt. |
|
REIT |
Real Estate Investment Trust. |
Foreign Currency Forward Exchange Contracts:
The Fund had the following foreign currency forward exchange contracts open at September 30, 2015:
|
Counterparty |
|
Currency |
|
Value |
|
Settlement |
|
In |
|
Value |
|
Unrealized |
| |||||
|
State Street Bank and Trust Co. |
|
KRW |
2,155,581 |
|
$ |
1,817 |
|
10/19/15 |
|
USD |
1,819 |
|
$ |
1,819 |
|
$ |
2 |
|
|
State Street Bank and Trust Co. |
|
KRW |
7,684,528 |
|
6,479 |
|
10/19/15 |
|
USD |
6,424 |
|
6,424 |
|
(55 |
) | |||
|
|
|
|
|
|
$ |
8,296 |
|
|
|
|
|
|
$ |
8,243 |
|
$ |
(53 |
) |
KRW – South Korean Won
USD – United States Dollar
Portfolio Composition
|
Classification |
|
Percentage of |
|
|
Other* |
|
54.2 |
% |
|
Banks |
|
15.6 |
|
|
Insurance |
|
8.5 |
|
|
Internet Software & Services |
|
5.6 |
|
|
Semiconductors & Semiconductor Equipment |
|
5.5 |
|
|
Wireless Telecommunication Services |
|
5.5 |
|
|
Tech Hardware, Storage & Peripherals |
|
5.1 |
|
|
Total Investments |
|
100.0 |
%** |
* Industries and/or investment types representing less than 5% of total investments.
** Does not include open foreign currency forward exchange contracts with net unrealized depreciation of approximately $53,000.
Morgan Stanley Asia-Pacific Fund, Inc.
Notes to the Portfolio of Investments · September 30, 2015 (unaudited)
Security Valuation: (1) An equity portfolio security listed or traded on an exchange is valued at its latest reported sales price (or at the exchange official closing price if such exchange reports an official closing price), if there were no sales on a given day, the security is valued at the mean between the last reported bid and asked prices; (2) all other equity portfolio securities for which over-the-counter (“OTC”) market quotations are readily available are valued at its latest reported sales price. In cases where a security is traded on more than one exchange, the security is valued on the exchange designated as the primary market; (3) when market quotations are not readily available, including circumstances under which Morgan Stanley Investment Management Inc. (the “Adviser”) or Morgan Stanley Investment Management Company (“MSIM Company”) (the “Sub-Adviser”) determines that the closing price, last sale price or the mean between the last reported bid and asked prices are not reflective of a security’s market value, portfolio securities are valued at their fair value as determined in good faith under procedures established by and under the general supervision of the Fund’s Board of Directors (the “Directors”). Occasionally, developments affecting the closing prices of securities and other assets may occur between the times at which valuations of such securities are determined (that is, close of the foreign market on which the securities trade) and the close of business of the New York Stock Exchange (“NYSE”). If developments occur during such periods that are expected to materially affect the value of such securities, such valuations may be adjusted to reflect the estimated fair value of such securities as of the close of the NYSE, as determined in good faith by the Directors or by the Adviser using a pricing service and/or procedures approved by the Directors; (4) quotations of foreign portfolio securities, other assets and liabilities and forward contracts stated in foreign currency are translated into United States dollar equivalents at the prevailing market rates prior to the close of the NYSE; (5) investments in mutual funds, including the Morgan Stanley Institutional Liquidity Funds, are valued at the net asset value as of the close of each business day; and (6) short-term debt securities with remaining maturities of 60 days or less at the time of purchase may be valued at amortized cost, unless the Adviser determines such valuation does not reflect the securities’ market value, in which case these securities will be valued at their fair market value determined by the Adviser.
The Directors have responsibility for determining in good faith the fair value of the investments, and the Directors may appoint others, such as the Fund’s Adviser or a valuation committee, to assist the Directors in determining fair value and to make the actual calculations pursuant to the fair valuation methodologies previously approved by the Directors. Under procedures approved by the Directors, the Fund’s Adviser has formed a Valuation Committee whose members are approved by the Directors. The Valuation Committee provides administration and oversight of the Fund’s valuation policies and procedures, which are reviewed at least annually by the Directors. These procedures allow the Fund to utilize independent pricing services, quotations from securities and financial instrument dealers, and other market sources to determine fair value.
The Fund has procedures to determine the fair value of securities and other financial instruments for which market prices are not readily available. Under these procedures, the Valuation Committee convenes on a regular and ad hoc basis to review such securities and considers a number of factors, including valuation methodologies and significant unobservable valuation inputs, when arriving at fair value. The Valuation Committee may employ a market-based approach which may use related or comparable assets or liabilities, recent transactions, market multiples, book values, and other relevant information for the investment to determine the fair value of the investment. An income-based valuation approach may also be used in which the anticipated future cash flows of the investment are discounted to calculate fair value. Discounts may also be applied due to the nature or duration of any restrictions on the disposition of the investments. Due to the inherent uncertainty of valuations of such investments, the fair values may differ significantly from the values that would have been used had an active market existed. The Valuation Committee employs various methods for calibrating these valuation approaches including a regular review of valuation methodologies, key inputs and assumptions, transactional back-testing or disposition analysis, and reviews of any related market activity.
Fair Value Measurement: Financial Accounting Standards Board (“FASB”) Accounting Standards CodificationTM (“ASC”) 820, “Fair Value Measurement” (“ASC 820”), defines fair value as the value that the Fund would receive to sell an investment or pay to transfer a liability in a timely transaction with an independent buyer in the principal market, or in the absence of a principal market the most advantageous market for the investment or liability. ASC 820 establishes a three-tier hierarchy to distinguish between (1) inputs that reflect the assumptions market participants would use in valuing an asset or liability developed based on market data obtained from sources independent of the reporting entity (observable inputs) and (2) inputs that reflect the reporting entity’s own assumptions about the assumptions market participants would use in valuing an asset or liability developed based on the best information available in the circumstances (unobservable inputs) and to establish classification of fair value measurements for disclosure purposes. Various inputs are used in determining the value of the Fund’s investments. The inputs are summarized in the three broad levels listed below.
· Level 1 — unadjusted quoted prices in active markets for identical investments
· Level 2 — other significant observable inputs (including quoted prices for similar investments, 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. Factors considered in making this determination may include, but are not limited to, information obtained by contacting the issuer, analysts, or the appropriate stock exchange (for exchange-traded securities), analysis of the issuer’s financial statements or other available documents and, if necessary, available information concerning other securities in similar circumstances
The inputs or methodology used for valuing securities are not necessarily an indication of the risk associated with investing in those securities and the determination of the significance of a particular input to the fair value measurement in its entirety requires judgment and considers factors specific to each security.
The following is a summary of the inputs used to value the Fund’s investments as of September 30, 2015.
|
Investment Type |
|
Level 1 |
|
Level 2 |
|
Level 3 |
|
Total |
| ||||
|
Assets: |
|
|
|
|
|
|
|
|
| ||||
|
Common Stocks |
|
|
|
|
|
|
|
|
| ||||
|
Aerospace & Defense |
|
$ |
339 |
|
$ |
1,052 |
|
$ |
— |
|
$ |
1,391 |
|
|
Automobiles |
|
— |
|
5,915 |
|
— |
|
5,915 |
| ||||
|
Banks |
|
— |
|
32,852 |
|
— |
|
32,852 |
| ||||
|
Chemicals |
|
— |
|
3,764 |
|
— |
|
3,764 |
| ||||
|
Commercial Services & Supplies |
|
— |
|
4,934 |
|
— |
|
4,934 |
| ||||
|
Construction & Engineering |
|
— |
|
2,075 |
|
— |
|
2,075 |
| ||||
|
Construction Materials |
|
— |
|
1,767 |
|
— |
|
1,767 |
| ||||
|
Consumer Finance |
|
— |
|
1,827 |
|
— |
|
1,827 |
| ||||
|
Distributors |
|
— |
|
1,827 |
|
— |
|
1,827 |
| ||||
|
Diversified Consumer Services |
|
880 |
|
— |
|
— |
|
880 |
| ||||
|
Diversified Financial Services |
|
— |
|
6,573 |
|
— |
|
6,573 |
| ||||
|
Diversified Telecommunication Services |
|
— |
|
2,852 |
|
— |
|
2,852 |
| ||||
|
Electronic Equipment, Instruments & Components |
|
— |
|
6,740 |
|
— |
|
6,740 |
| ||||
|
Food Products |
|
— |
|
3,967 |
|
— |
|
3,967 |
| ||||
|
Health Care Equipment & Supplies |
|
— |
|
2,685 |
|
— |
|
2,685 |
| ||||
|
Health Care Providers & Services |
|
— |
|
1,966 |
|
— |
|
1,966 |
| ||||
|
Hotels, Restaurants & Leisure |
|
— |
|
976 |
|
— |
|
976 |
| ||||
|
Household Durables |
|
— |
|
2,523 |
|
— |
|
2,523 |
| ||||
|
Independent Power Producers & Energy Traders |
|
— |
|
773 |
|
— |
|
773 |
| ||||
|
Industrial Conglomerates |
|
— |
|
8,810 |
|
— |
|
8,810 |
| ||||
|
Information Technology Services |
|
— |
|
3,471 |
|
— |
|
3,471 |
| ||||
|
Insurance |
|
— |
|
17,856 |
|
— |
|
17,856 |
| ||||
|
Internet & Catalog Retail |
|
1,364 |
|
375 |
|
— |
|
1,739 |
| ||||
|
Internet Software & Services |
|
655 |
|
11,161 |
|
— |
|
11,816 |
| ||||
|
Machinery |
|
— |
|
3,227 |
|
— |
|
3,227 |
| ||||
|
Media |
|
— |
|
2,821 |
|
— |
|
2,821 |
| ||||
|
Multi-Utilities |
|
— |
|
1,478 |
|
— |
|
1,478 |
| ||||
|
Multi-line Retail |
|
— |
|
1,661 |
|
— |
|
1,661 |
| ||||
|
Oil, Gas & Consumable Fuels |
|
— |
|
1,487 |
|
— |
|
1,487 |
| ||||
|
Personal Products |
|
— |
|
4,273 |
|
— |
|
4,273 |
| ||||
|
Pharmaceuticals |
|
— |
|
5,326 |
|
— |
|
5,326 |
| ||||
|
Real Estate Investment Trusts (REITs) |
|
— |
|
2,679 |
|
— |
|
2,679 |
| ||||
|
Real Estate Management & Development |
|
— |
|
7,183 |
|
— |
|
7,183 |
| ||||
|
Semiconductors & Semiconductor Equipment |
|
212 |
|
11,416 |
|
— |
|
11,628 |
| ||||
|
Software |
|
— |
|
1,469 |
|
— |
|
1,469 |
| ||||
|
Specialty Retail |
|
— |
|
4,441 |
|
— |
|
4,441 |
| ||||
|
Tech Hardware, Storage & Peripherals |
|
— |
|
10,740 |
|
— |
|
10,740 |
| ||||
|
Textiles, Apparel & Luxury Goods |
|
— |
|
4,909 |
|
— |
|
4,909 |
| ||||
|
Trading Companies & Distributors |
|
— |
|
479 |
|
— |
|
479 |
| ||||
|
Transportation Infrastructure |
|
— |
|
2,569 |
|
— |
|
2,569 |
| ||||
|
Wireless Telecommunication Services |
|
— |
|
11,502 |
|
— |
|
11,502 |
| ||||
|
Total Common Stocks |
|
3,450 |
|
204,401 |
|
— |
|
207,851 |
| ||||
|
Short-Term Investment |
|
|
|
— |
|
— |
|
|
| ||||
|
Investment Company |
|
2,856 |
|
— |
|
— |
|
2,856 |
| ||||
|
Foreign Currency Forward Exchange Contract |
|
— |
|
2 |
|
— |
|
2 |
| ||||
|
Total Assets |
|
6,306 |
|
204,403 |
|
— |
|
210,709 |
| ||||
|
Liabilities: |
|
|
|
|
|
|
|
|
| ||||
|
Foreign Currency Forward Exchange Contract |
|
— |
|
(55 |
) |
— |
|
(55 |
) | ||||
|
Total |
|
$ |
6,306 |
|
$ |
204,348 |
|
$ |
— |
|
$ |
210,654 |
|
Transfers between investment levels may occur as the markets fluctuate and/or the availability of data used in an investment’s valuation changes. The Fund recognizes transfers between the levels as of the end of the period. As of September 30, 2015, the Fund did not have any investments transfer between investment levels.
Item 2. Controls and Procedures.
(a) The Fund’s principal executive officer and principal financial officer have concluded that the Fund’s disclosure controls and procedures are sufficient to ensure that information required to be disclosed by the Fund in this Form N-Q was recorded, processed, summarized and reported within the time periods specified in the Securities and Exchange Commission’s rules and forms, based upon such officers’ evaluation of these controls and procedures as of a date within 90 days of the filing date of the report.
(b) There were no changes in the Fund’s internal control over financial reporting that occurred during the registrant’s fiscal quarter that has materially affected, or is reasonably likely to materially affect, the Fund’s internal control over financial reporting.
Item 3. Exhibits.
(a) A separate certification for each principal executive officer and principal financial officer of the registrant are 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.
|
Morgan Stanley Asia-Pacific Fund, Inc. |
|
|
|
|
|
/s/ John H. Gernon |
|
|
John H. Gernon |
|
|
Principal Executive Officer |
|
|
November 19, 2015 |
|
Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed by the following persons on behalf of the registrant and in the capacities and on the dates indicated.
|
/s/ John H. Gernon |
|
|
John H. Gernon |
|
|
Principal Executive Officer |
|
|
November 19, 2015 |
|
|
|
|
|
/s/ Francis Smith |
|
|
Francis Smith |
|
|
Principal Financial Officer |
|
|
November 19, 2015 |
|