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Form N-Q MORGAN STANLEY ASIA-PACI For: Mar 31

May 25, 2016 1:24 PM EDT

 

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

 

Morgan Stanley Asia-Pacific Fund, Inc.

(Exact name of registrant as specified in charter)

 

522 Fifth Avenue, New York, New York

 

10036

(Address of principal executive offices)

 

(Zip code)

 

John H. Gernon

522 Fifth Avenue, New York, New York 10036

(Name and address of agent for service)

 

Registrant’s telephone number, including area code:

212-296-0289

 

 

Date of fiscal year end:

December 31,

 

 

Date of reporting period:

March 31, 2016

 

 



 

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

First Quarter Report

March 31, 2016 (unaudited)

 

 

 

Shares

 

Value
(000)

 

Common Stocks (97.0%)

 

 

 

 

 

Australia (17.0%)

 

 

 

 

 

Banks

 

 

 

 

 

Commonwealth Bank of Australia

 

102,123

 

$

5,865

 

Westpac Banking Corp.

 

178,309

 

4,148

 

 

 

 

 

10,013

 

Commercial Services & Supplies

 

 

 

 

 

Brambles Ltd.

 

341,126

 

3,169

 

 

 

 

 

 

 

Food & Staples Retailing

 

 

 

 

 

Woolworths Ltd.

 

116,908

 

1,981

 

 

 

 

 

 

 

Health Care Equipment & Supplies

 

 

 

 

 

ResMed, Inc.

 

475,140

 

2,706

 

 

 

 

 

 

 

Hotels, Restaurants & Leisure

 

 

 

 

 

Tabcorp Holdings Ltd.

 

880,330

 

2,888

 

 

 

 

 

 

 

Information Technology Services

 

 

 

 

 

Computershare Ltd.

 

297,239

 

2,228

 

 

 

 

 

 

 

Insurance

 

 

 

 

 

AMP Ltd.

 

816,758

 

3,625

 

QBE Insurance Group Ltd.

 

278,882

 

2,332

 

 

 

 

 

5,957

 

Oil, Gas & Consumable Fuels

 

 

 

 

 

Santos Ltd.

 

590,577

 

1,825

 

 

 

 

 

 

 

Real Estate Investment Trusts (REITs)

 

 

 

 

 

Mirvac Group REIT

 

2,047,786

 

3,038

 

 

 

 

 

 

 

Real Estate Management & Development

 

 

 

 

 

Lend Lease Group REIT

 

297,744

 

3,166

 

 

 

 

 

36,971

 

China (19.9%)

 

 

 

 

 

Automobiles

 

 

 

 

 

Chongqing Changan Automobile Co., Ltd. B Shares

 

354,500

 

664

 

 

 

 

 

 

 

Banks

 

 

 

 

 

Bank of China Ltd. H Shares (a) 

 

8,928,000

 

3,706

 

China Construction Bank Corp. H Shares (a) 

 

7,115,560

 

4,540

 

 

 

 

 

8,246

 

Construction & Engineering

 

 

 

 

 

China Machinery Engineering Corp. H Shares (a) 

 

796,000

 

556

 

 

 

 

 

 

 

Diversified Consumer Services

 

 

 

 

 

TAL Education Group ADR (b) 

 

16,323

 

811

 

 

 

 

 

 

 

Diversified Telecommunication Services

 

 

 

 

 

China Unicom Hong Kong Ltd. (a) 

 

1,074,000

 

1,418

 

 



 

Food Products

 

 

 

 

 

China Mengniu Dairy Co., Ltd. (a) 

 

448,000

 

713

 

 

 

 

 

 

 

Hotels, Restaurants & Leisure

 

 

 

 

 

Shanghai Jin Jiang International Hotels Group Co., Ltd. H Shares (a) 

 

1,176,000

 

479

 

 

 

 

 

 

 

Independent Power Producers & Energy Traders

 

 

 

 

 

Huadian Power International Corp., Ltd. H Shares (a) 

 

984,000

 

627

 

 

 

 

 

 

 

Insurance

 

 

 

 

 

China Pacific Insurance Group Co., Ltd. H Shares (a) 

 

653,400

 

2,443

 

China Taiping Insurance Holdings Co., Ltd. (a)(b) 

 

375,800

 

825

 

 

 

 

 

3,268

 

Internet & Catalog Retail

 

 

 

 

 

JD.com, Inc. ADR (b) 

 

57,742

 

1,530

 

 

 

 

 

 

 

Internet Software & Services

 

 

 

 

 

Alibaba Group Holding Ltd. ADR (b) 

 

18,900

 

1,494

 

NetEase, Inc. ADR

 

4,555

 

654

 

Tencent Holdings Ltd. (a) 

 

555,900

 

11,351

 

 

 

 

 

13,499

 

Machinery

 

 

 

 

 

CRCC High-Tech Equipment Corp., Ltd. H Shares (a)(b) 

 

1,243,500

 

691

 

 

 

 

 

 

 

Pharmaceuticals

 

 

 

 

 

CSPC Pharmaceutical Group Ltd. (a) 

 

938,000

 

849

 

Sihuan Pharmaceutical Holdings Group Ltd. (a) 

 

1,291,000

 

369

 

 

 

 

 

1,218

 

Real Estate Management & Development

 

 

 

 

 

China Overseas Land & Investment Ltd. (a) 

 

480,000

 

1,519

 

 

 

 

 

 

 

Textiles, Apparel & Luxury Goods

 

 

 

 

 

Shenzhou International Group Holdings Ltd. (a) 

 

197,000

 

1,072

 

 

 

 

 

 

 

Transportation Infrastructure

 

 

 

 

 

Shenzhen International Holdings Ltd. (a) 

 

416,500

 

675

 

 

 

 

 

 

 

Wireless Telecommunication Services

 

 

 

 

 

China Mobile Ltd. (a) 

 

550,500

 

6,135

 

 

 

 

 

43,121

 

Hong Kong (8.7%)

 

 

 

 

 

Banks

 

 

 

 

 

BOC Hong Kong Holdings Ltd.

 

861,500

 

2,571

 

 

 

 

 

 

 

Diversified Financial Services

 

 

 

 

 

Hong Kong Exchanges and Clearing Ltd.

 

59,200

 

1,425

 

 

 

 

 

 

 

Diversified Telecommunication Services

 

 

 

 

 

HKT Trust & HKT Ltd.

 

1,028,340

 

1,416

 

 

 

 

 

 

 

Electric Utilities

 

 

 

 

 

Power Assets Holdings Ltd.

 

32,000

 

327

 

 



 

Industrial Conglomerates

 

 

 

 

 

CK Hutchison Holdings Ltd.

 

393,768

 

5,112

 

 

 

 

 

 

 

Insurance

 

 

 

 

 

AIA Group Ltd.

 

698,200

 

3,956

 

 

 

 

 

 

 

Real Estate Management & Development

 

 

 

 

 

Cheung Kong Property Holdings Ltd.

 

332,768

 

2,143

 

 

 

 

 

 

 

Textiles, Apparel & Luxury Goods

 

 

 

 

 

Samsonite International SA

 

551,100

 

1,847

 

 

 

 

 

18,797

 

India (10.2%)

 

 

 

 

 

Automobiles

 

 

 

 

 

Maruti Suzuki India Ltd.

 

31,682

 

1,778

 

 

 

 

 

 

 

Banks

 

 

 

 

 

HDFC Bank Ltd.

 

148,004

 

2,804

 

IndusInd Bank Ltd.

 

149,259

 

2,181

 

 

 

 

 

4,985

 

Construction & Engineering

 

 

 

 

 

Larsen & Toubro Ltd.

 

89,901

 

1,652

 

 

 

 

 

 

 

Construction Materials

 

 

 

 

 

Shree Cement Ltd.

 

10,983

 

2,060

 

 

 

 

 

 

 

Consumer Finance

 

 

 

 

 

Shriram Transport Finance Co., Ltd.

 

145,356

 

2,092

 

 

 

 

 

 

 

Machinery

 

 

 

 

 

Ashok Leyland Ltd.

 

1,950,994

 

3,199

 

 

 

 

 

 

 

Media

 

 

 

 

 

Inox Leisure Ltd. (b) 

 

322,750

 

937

 

Zee Entertainment Enterprises Ltd.

 

11,072

 

64

 

 

 

 

 

1,001

 

Oil, Gas & Consumable Fuels

 

 

 

 

 

Bharat Petroleum Corp., Ltd.

 

114,513

 

1,564

 

 

 

 

 

 

 

Personal Products

 

 

 

 

 

Marico Ltd.

 

364,497

 

1,345

 

 

 

 

 

 

 

Pharmaceuticals

 

 

 

 

 

Glenmark Pharmaceuticals Ltd.

 

107,706

 

1,293

 

 

 

 

 

 

 

Transportation Infrastructure

 

 

 

 

 

Gateway Distriparks Ltd.

 

263,211

 

1,113

 

 

 

 

 

22,082

 

Indonesia (3.6%)

 

 

 

 

 

Banks

 

 

 

 

 

Bank Negara Indonesia Persero Tbk PT

 

750,100

 

294

 

 

 

 

 

 

 

Diversified Telecommunication Services

 

 

 

 

 

Link Net Tbk PT (b) 

 

2,534,600

 

785

 

 



 

XL Axiata Tbk PT (b) 

 

4,578,200

 

1,381

 

 

 

 

 

2,166

 

Food Products

 

 

 

 

 

Nippon Indosari Corpindo Tbk PT

 

1,941,600

 

187

 

 

 

 

 

 

 

Machinery

 

 

 

 

 

United Tractors Tbk PT

 

657,300

 

758

 

 

 

 

 

 

 

Media

 

 

 

 

 

Surya Citra Media Tbk PT

 

3,887,400

 

921

 

 

 

 

 

 

 

Multi-line Retail

 

 

 

 

 

Matahari Department Store Tbk PT

 

1,032,800

 

1,429

 

 

 

 

 

 

 

Pharmaceuticals

 

 

 

 

 

Kalbe Farma Tbk PT

 

7,560,600

 

824

 

 

 

 

 

 

 

Real Estate Management & Development

 

 

 

 

 

Bumi Serpong Damai Tbk PT

 

1,574,100

 

218

 

 

 

 

 

 

 

Trading Companies & Distributors

 

 

 

 

 

AKR Corporindo Tbk PT

 

824,000

 

432

 

 

 

 

 

 

 

Transportation Infrastructure

 

 

 

 

 

Jasa Marga Persero Tbk PT (b) 

 

1,558,400

 

635

 

 

 

 

 

7,864

 

Korea, Republic of (16.9%)

 

 

 

 

 

Aerospace & Defense

 

 

 

 

 

Korea Aerospace Industries Ltd.

 

32,830

 

1,872

 

LIG Nex1 Co., Ltd.

 

9,297

 

857

 

 

 

 

 

2,729

 

Automobiles

 

 

 

 

 

Kia Motors Corp.

 

57,644

 

2,435

 

 

 

 

 

 

 

Chemicals

 

 

 

 

 

LG Chem Ltd.

 

7,274

 

2,083

 

 

 

 

 

 

 

Construction & Engineering

 

 

 

 

 

Hyundai Development Co-Engineering & Construction

 

40,030

 

1,608

 

 

 

 

 

 

 

Electric Utilities

 

 

 

 

 

Korea Electric Power Corp.

 

40,098

 

2,111

 

 

 

 

 

 

 

Household Durables

 

 

 

 

 

Coway Co., Ltd.

 

26,271

 

2,217

 

 

 

 

 

 

 

Industrial Conglomerates

 

 

 

 

 

SK Holdings Co., Ltd.

 

13,015

 

2,538

 

 

 

 

 

 

 

Insurance

 

 

 

 

 

Samsung Fire & Marine Insurance Co., Ltd.

 

3,730

 

962

 

 

 

 

 

 

 

Internet Software & Services

 

 

 

 

 

NAVER Corp.

 

4,466

 

2,488

 

 



 

Media

 

 

 

 

 

Innocean Worldwide, Inc.

 

3,749

 

264

 

 

 

 

 

 

 

Personal Products

 

 

 

 

 

Amorepacific Corp.

 

8,176

 

2,763

 

Cosmax, Inc.

 

2,947

 

324

 

 

 

 

 

3,087

 

Software

 

 

 

 

 

Nexon Co., Ltd.

 

123,200

 

2,101

 

 

 

 

 

 

 

Specialty Retail

 

 

 

 

 

Hotel Shilla Co., Ltd.

 

20,452

 

1,189

 

 

 

 

 

 

 

Tech Hardware, Storage & Peripherals

 

 

 

 

 

Samsung Electronics Co., Ltd.

 

6,160

 

7,067

 

Samsung Electronics Co., Ltd. (Preference)

 

3,854

 

3,731

 

 

 

 

 

10,798

 

Wireless Telecommunication Services

 

 

 

 

 

SK Telecom Co., Ltd.

 

983

 

179

 

 

 

 

 

36,789

 

Philippines (3.1%)

 

 

 

 

 

Banks

 

 

 

 

 

BDO Unibank, Inc.

 

285,550

 

634

 

Metropolitan Bank & Trust Co.

 

510,223

 

914

 

Rizal Commercial Banking Corp.

 

553,360

 

361

 

 

 

 

 

1,909

 

Diversified Financial Services

 

 

 

 

 

Ayala Corp.

 

53,846

 

877

 

Metro Pacific Investments Corp.

 

7,668,800

 

978

 

 

 

 

 

1,855

 

Industrial Conglomerates

 

 

 

 

 

DMCI Holdings, Inc.

 

2,912,200

 

847

 

LT Group, Inc.

 

1,784,500

 

605

 

SM Investments Corp.

 

43,640

 

900

 

 

 

 

 

2,352

 

Transportation Infrastructure

 

 

 

 

 

International Container Terminal Services, Inc.

 

391,720

 

576

 

 

 

 

 

6,692

 

Singapore (2.9%)

 

 

 

 

 

Banks

 

 

 

 

 

DBS Group Holdings Ltd.

 

71,216

 

812

 

Oversea-Chinese Banking Corp., Ltd.

 

105,161

 

690

 

 

 

 

 

1,502

 

Distributors

 

 

 

 

 

Jardine Cycle & Carriage Ltd.

 

82,300

 

2,444

 

 



 

Health Care Providers & Services

 

 

 

 

 

Raffles Medical Group Ltd.

 

210,022

 

703

 

 

 

 

 

 

 

Multi-Utilities

 

 

 

 

 

Keppel Infrastructure Trust (Units) (c) 

 

3,222,900

 

1,184

 

 

 

 

 

 

 

Specialty Retail

 

 

 

 

 

OSIM International Ltd.

 

422,200

 

429

 

 

 

 

 

6,262

 

Taiwan (13.7%)

 

 

 

 

 

Chemicals

 

 

 

 

 

Formosa Plastics Corp.

 

431,000

 

1,069

 

 

 

 

 

 

 

Diversified Financial Services

 

 

 

 

 

Chailease Holding Co., Ltd.

 

853,080

 

1,487

 

Fubon Financial Holding Co., Ltd.

 

1,088,000

 

1,386

 

 

 

 

 

2,873

 

Electronic Equipment, Instruments & Components

 

 

 

 

 

Delta Electronics, Inc.

 

397,532

 

1,754

 

Hon Hai Precision Industry Co., Ltd.

 

1,151,050

 

3,033

 

 

 

 

 

4,787

 

Food Products

 

 

 

 

 

Uni-President Enterprises Corp.

 

1,477,046

 

2,593

 

 

 

 

 

 

 

Internet Software & Services

 

 

 

 

 

PChome Online, Inc.

 

94,000

 

1,035

 

 

 

 

 

 

 

Semiconductors & Semiconductor Equipment

 

 

 

 

 

Advanced Semiconductor Engineering, Inc.

 

1,758,000

 

2,046

 

Advanced Semiconductor Engineering, Inc. ADR

 

25,033

 

146

 

Hermes Microvision, Inc.

 

16,584

 

474

 

Taiwan Semiconductor Manufacturing Co., Ltd.

 

1,480,592

 

7,453

 

 

 

 

 

10,119

 

Tech Hardware, Storage & Peripherals

 

 

 

 

 

Catcher Technology Co., Ltd.

 

262,000

 

2,149

 

Pegatron Corp.

 

769,000

 

1,794

 

 

 

 

 

3,943

 

Textiles, Apparel & Luxury Goods

 

 

 

 

 

Eclat Textile Co., Ltd.

 

158,604

 

2,087

 

 

 

 

 

 

 

Wireless Telecommunication Services

 

 

 

 

 

Taiwan Mobile Co., Ltd.

 

371,000

 

1,205

 

 

 

 

 

29,711

 

Thailand (0.9%)

 

 

 

 

 

Hotels, Restaurants & Leisure

 

 

 

 

 

Minor International PCL (Foreign)

 

1,228,920

 

1,293

 

 

 

 

 

 

 

Real Estate Management & Development

 

 

 

 

 

Central Pattana PCL (Foreign)

 

230,400

 

337

 

 



 

Land and Houses PCL (Foreign)

 

1,685,480

 

429

 

 

 

 

 

766

 

 

 

 

 

2,059

 

United States (0.1%)

 

 

 

 

 

Household Durables

 

 

 

 

 

Nien Made Enterprise Co., Ltd. (b) 

 

17,000

 

121

 

Total Common Stocks (Cost $189,275)

 

 

 

210,469

 

Short-Term Investment (2.6%)

 

 

 

 

 

Investment Company (2.6%)

 

 

 

 

 

Morgan Stanley Institutional Liquidity Funds - Money Market Portfolio - Institutional Class (d) (Cost $5,568)

 

5,568,423

 

5,568

 

Total Investments (99.6%) (Cost $194,843) (e)

 

 

 

216,037

 

Other Assets in Excess of Liabilities (0.4%)

 

 

 

843

 

Net Assets (100.0%)

 

 

 

$

216,880

 

 


(a)

 

Security trades on the Hong Kong exchange.

 

(b)

 

Non-income producing security.

 

(c)

 

Consists of one or more classes of securities traded together as a unit; stocks with attached warrants.

 

(d)

 

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 administration fees paid by the Fund due to its investment in the Liquidity Funds. For the three months ended March 31, 2016, advisory fees paid were reduced by approximately $1,000 relating to the Fund’s investment in the Liquidity Funds.

 

(e)

 

At March 31, 2016, the aggregate cost for Federal income tax purposes approximates the aggregate cost for book purposes. The aggregate gross unrealized appreciation is approximately $32,608,000 and the aggregate gross unrealized depreciation is approximately $11,414,000 resulting in net unrealized appreciation of approximately $21,194,000.

 

ADR

 

American Depositary Receipt.

 

REIT

 

Real Estate Investment Trust.

 

 



 

Portfolio Composition

 

Classification

 

Percentage of
Total Investments

 

Other*

 

65.1

%

Banks

 

13.7

 

Internet Software & Services

 

7.9

 

Tech Hardware, Storage & Peripherals

 

6.8

 

Insurance

 

6.5

 

Total Investments

 

100.0

%

 


*  Industries and/or investment types representing less than 5% of total investments.

 



 

Morgan Stanley Asia-Pacific Fund, Inc.

 

Notes to the Portfolio of Investments · March 31, 2016 (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 March 31, 2016.

 

Investment Type

 

Level 1
Unadjusted
quoted
prices
(000)

 

Level 2
Other
significant
observable
inputs
(000)

 

Level 3
Significant
unobservable
inputs
(000)

 

Total
(000)

 

Assets:

 

 

 

 

 

 

 

 

 

Common Stocks

 

 

 

 

 

 

 

 

 

Aerospace & Defense

 

$

2,729

 

$

 

$

 

$

2,729

 

Automobiles

 

4,877

 

 

 

4,877

 

Banks

 

26,716

 

2,804

 

 

29,520

 

Chemicals

 

3,152

 

 

 

3,152

 

Commercial Services & Supplies

 

3,169

 

 

 

3,169

 

Construction & Engineering

 

3,816

 

 

 

3,816

 

Construction Materials

 

2,060

 

 

 

2,060

 

Consumer Finance

 

2,092

 

 

 

2,092

 

Distributors

 

2,444

 

 

 

2,444

 

Diversified Consumer Services

 

811

 

 

 

811

 

Diversified Financial Services

 

6,153

 

 

 

6,153

 

Diversified Telecommunication Services

 

5,000

 

 

 

5,000

 

Electric Utilities

 

2,438

 

 

 

2,438

 

Electronic Equipment, Instruments & Components

 

4,787

 

 

 

4,787

 

Food & Staples Retailing

 

1,981

 

 

 

1,981

 

Food Products

 

3,493

 

 

 

3,493

 

Health Care Equipment & Supplies

 

2,706

 

 

 

2,706

 

Health Care Providers & Services

 

703

 

 

 

703

 

Hotels, Restaurants & Leisure

 

3,367

 

1,293

 

 

4,660

 

Household Durables

 

2,338

 

 

 

2,338

 

Independent Power Producers & Energy Traders

 

627

 

 

 

627

 

Industrial Conglomerates

 

10,002

 

 

 

10,002

 

Information Technology Services

 

2,228

 

 

 

2,228

 

Insurance

 

14,143

 

 

 

14,143

 

Internet & Catalog Retail

 

1,530

 

 

 

1,530

 

Internet Software & Services

 

17,022

 

 

 

17,022

 

Machinery

 

4,648

 

 

 

4,648

 

Media

 

2,186

 

 

 

2,186

 

Multi-Utilities

 

1,184

 

 

 

1,184

 

Multi-line Retail

 

1,429

 

 

 

1,429

 

Oil, Gas & Consumable Fuels

 

3,389

 

 

 

3,389

 

Personal Products

 

4,432

 

 

 

4,432

 

Pharmaceuticals

 

3,335

 

 

 

3,335

 

Real Estate Investment Trusts (REITs)

 

3,038

 

 

 

3,038

 

Real Estate Management & Development

 

7,046

 

766

 

 

7,812

 

Semiconductors & Semiconductor Equipment

 

10,119

 

 

 

10,119

 

Software

 

2,101

 

 

 

2,101

 

Specialty Retail

 

1,618

 

 

 

1,618

 

Tech Hardware, Storage & Peripherals

 

14,741

 

 

 

14,741

 

Textiles, Apparel & Luxury Goods

 

5,006

 

 

 

5,006

 

Trading Companies & Distributors

 

432

 

 

 

432

 

Transportation Infrastructure

 

2,999

 

 

 

2,999

 

Wireless Telecommunication Services

 

7,519

 

 

 

7,519

 

Total Common Stocks

 

205,606

 

4,863

 

 

210,469

 

Short-Term Investment

 

 

 

 

 

 

 

 

 

Investment Company

 

5,568

 

 

 

5,568

 

Total Assets

 

$

211,174

 

$

4,863

 

$

 

$

216,037

 

 



 

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 March 31, 2016, securities with a total value of approximately $192,781,000 transferred from Level 2 to Level 1. Securities that were valued using significant other inputs at December 31, 2015 were valued using unadjusted quoted prices at March 31, 2016. As of March 31, 2016, securities with a total value of approximately $369,000 transferred from Level 3 to Level 1. Securities that were valued using significant unobservable inputs at December 31, 2015 were valued using unadjusted quoted prices at March 31, 2016.

 

Following is a reconciliation of investments in which significant unobservable inputs (Level 3) were used in determining fair value.

 

 

 

Common Stock
(000)

 

 

 

 

 

Beginning Balance

 

$

967

 

Purchases

 

 

Sales

 

(334

)

Amortization of discount

 

 

Transfers in

 

 

Transfers out

 

(370

)

Corporate actions

 

 

Change in unrealized appreciation (depreciation)

 

75

 

Realized gains (losses)

 

(338

)

Ending Balance

 

$

 

 

 

 

 

Net change in unrealized appreciation (depreciation) from investments still held as of March 31, 2016

 

$

75

 

 



 

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

 

May 19, 2016

 

 

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

 

May 19, 2016

 

 

/s/ Francis Smith

 

Francis Smith

 

Principal Financial Officer

 

May 19, 2016

 

 


Exhibit 99.CERT

 

CERTIFICATION OF PRINCIPAL EXECUTIVE OFFICER

 

I, John H. Gernon, certify that:

 

1.                                      I have reviewed this report on Form N-Q of Morgan Stanley Asia-Pacific Fund, Inc.;

 

2.                                      Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

 

3.                                      Based on my knowledge, the schedules of investments included in this report fairly present in all material respects the investments of the registrant as of the end of the fiscal quarter for which the report is filed;

 

4.                                      The registrant’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940) for the registrant and have:

 

(a)                                 Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

 

(b)                                 Omitted;

 

(c)                                  Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of a date within 90 days prior to the filing date of this report, based on such evaluation; and

 

(d)                                 Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

 

5.                                      The registrant’s other certifying officer(s) and I have disclosed to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

 

(a)                                 All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize, and report financial information; and

 

(b)                                 Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

 

Date: May 19, 2016

/s/ John H. Gernon

 

John H. Gernon

 

Principal Executive Officer

 



 

CERTIFICATION OF PRINCIPAL FINANCIAL OFFICER

 

I, Francis Smith, certify that:

 

1.                                      I have reviewed this report on Form N-Q of Morgan Stanley Asia-Pacific Fund, Inc.;

 

2.                                      Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

 

3.                                      Based on my knowledge, the schedules of investments included in this report fairly present in all material respects the investments of the registrant as of the end of the fiscal quarter for which the report is filed;

 

4.                                      The registrant’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940) for the registrant and have:

 

(a)                                 Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

 

(b)                                 Omitted;

 

(c)                                  Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of a date within 90 days prior to the filing date of this report, based on such evaluation; and

 

(d)                                 Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

 

5.                                      The registrant’s other certifying officer(s) and I have disclosed to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

 

(a)                                 All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize, and report financial information; and

 

(b)                                 Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

 

Date: May 19, 2016

/s/ Francis Smith

 

Francis Smith

 

Principal Financial Officer

 




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