0001144204-11-032276.txt : 20110525 0001144204-11-032276.hdr.sgml : 20110525 20110525095949 ACCESSION NUMBER: 0001144204-11-032276 CONFORMED SUBMISSION TYPE: N-Q PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 20110331 FILED AS OF DATE: 20110525 DATE AS OF CHANGE: 20110525 EFFECTIVENESS DATE: 20110525 FILER: COMPANY DATA: COMPANY CONFORMED NAME: Cheswold Lane Funds CENTRAL INDEX KEY: 0001359318 IRS NUMBER: 000000000 STATE OF INCORPORATION: DE FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: N-Q SEC ACT: 1940 Act SEC FILE NUMBER: 811-21891 FILM NUMBER: 11869734 BUSINESS ADDRESS: STREET 1: 100 FRONT STREET, SUITE 960 CITY: WEST CONSHOHOCKEN STATE: PA ZIP: 19428 BUSINESS PHONE: 610-940-5330 MAIL ADDRESS: STREET 1: 100 FRONT STREET, SUITE 960 CITY: WEST CONSHOHOCKEN STATE: PA ZIP: 19428 0001359318 S000012740 Cheswold Lane International High Dividend Fund C000034318 Institutional N-Q 1 v223416_nq.htm Unassociated Document

 
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 811-21891
 
Cheswold Lane Funds
(Exact name of registrant as specified in charter)
 
100 Front Street, Suite 960
West Conshohocken, PA 19428
(Address of principal executive offices) (Zip code)

 
Colleen Quinn Scharpf
Cheswold Lane Asset Management, LLC
100 Front Street, Suite 960
West Conshohocken, PA 19428
 (Name and address of agent for service)
 
Registrant's telephone number, including area code: (610) 940-5330
 
Date of fiscal year end: December 31
Date of reporting period: March 31, 2011
 

 
 
 

 
Item 1.  Schedule of Investments.
 

Cheswold Lane International High Dividend Fund
Schedule of Investments
March 31, 2011
(Unaudited)

Number of
Shares
            
Value
  
 
 
  
COMMON STOCKS
     99.3 %      
     
CONSUMER DISCRETIONARY
     17.7 %      
    8,500  
Casino Guichard-Perrachon S.A.
           $ 804,562  
    126,000  
Compass Group PLC
             1,132,941  
    80,000  
David Jones Ltd.
             393,053  
    277,000  
Harvey Norman Holdings Ltd.
             859,546  
    6,500  
Honda Motor Co., Ltd.
             244,199  
    181,000  
Marks & Spencer Group PLC
             977,649  
    11,800  
Toyota Motor Corp.
             475,234  
    106,000  
Yue Yuen Industrial Holdings Ltd.
             337,274  
              5,224,458  
       
CONSUMER STAPLES
     18.7 %        
    12,000  
British American Tobacco PLC
             481,648  
    44,500  
Coca-Cola Amatil Ltd.
             540,376  
    32,850  
Henkel A.G. & Co. KGaA
             1,716,243  
    20,900  
Nestle S.A.
             1,198,024  
    5,300  
Pernod-Ricard S.A.
             494,983  
    35,100  
Unilever NV
             1,100,574  
              5,531,848  
       
ENERGY
     17.7 %        
    167,000  
BP PLC
             1,216,280  
    20,500  
ENI SpA
             503,479  
    51  
Inpex Corp.
             386,884  
    22,400  
Modec, Inc.
             408,521  
    19,200  
Noble Corp.
             875,904  
    1,700  
Technip S.A.
             181,294  
    15,300  
Transocean Ltd.*
             1,192,635  
    9,300  
Woodside Petroleum Ltd.
             450,191  
              5,215,188  
       
FINANCIALS
     14.5 %        
    27,100  
AXA S.A.
             566,295  
    13,000  
BNP Paribas
             950,837  
    4,300  
Deutsche Bank AG
             252,807  
    502,000  
Governor & Co. of the Bank of Ireland*#
             152,958  
    43,000  
HSBC Holdings PLC
             451,916  
    34,500  
ING Groep NV*
             436,665  
    71,000  
Irish Life & Permanent PLC*#
             37,230  
    3,100  
MS&AD Insurance Group Holdings
             70,587  
    6,000  
ORIX Corp.
             561,914  
    55,000  
Oversea-Chinese Banking Corp. Ltd.
             418,009  
    14,100  
Tokio Marine Holdings, Inc.
             376,994  
              4,276,212  
       
HEALTH CARE
     3.9 %        
    9,400  
Fresenius Medical Care AG & Co. KGaA
             631,311  

See accompanying notes to schedule of investments.
 
 
 

Cheswold Lane International High Dividend Fund
Schedule of Investments
March 31, 2011
(Unaudited)


Number of
Shares
            
Value
  
  3,700  
Roche Holding AG
         $ 528,514  
            1,159,825  
     
INDUSTRIALS
     7.5 %        
  27,000  
Chiyoda Corp.
             247,343  
  89,000  
Fraser and Neave Ltd.
             424,348  
  9,200  
Siemens AG
             1,260,922  
  76,000  
Toyo Engineering Corp.
             292,378  
              2,224,991  
     
INFORMATION TECHNOLOGY
     3.6 %        
  14,900  
Canon, Inc.
             648,449  
  51,000  
Konica Minolta Holdings, Inc.
             427,351  
              1,075,800  
     
MATERIALS
     12.1 %        
  1,100  
Air Liquide S.A.
             146,164  
  67,000  
Air Water, Inc.
             815,953  
  5,500  
BHP Billiton Ltd.
             264,876  
  293,000  
OneSteel Ltd.
             739,478  
  850  
Rio Tinto Ltd.
             74,512  
  8,200  
Shin-Etsu Chemical Co., Ltd.
             407,634  
  71,000  
Sumitomo Chemical Co., Ltd.
             354,232  
  16,750  
Voestalpine AG
             786,440  
              3,589,289  
     
TELECOMMUNICATION SERVICES
     3.6 %        
  21,300  
Telefonica S.A.
             533,239  
  190,000  
Vodafone Group PLC
             537,972  
              1,071,211  
 
TOTAL COMMON STOCKS (Cost $26,131,149)
             29,368,822  

Principal
Amount
            
Value
  
     
SHORT-TERM INVESTMENT
     0.1 %      
     
Variable Rate Demand Deposit
              
$ 18,227  
UMB Bank Money Market Fiduciary, 0.01%†
             18,227  
     
TOTAL SHORT-TERM INVESTMENTS (Cost $18,227)
             18,227  
     
TOTAL INVESTMENTS (Cost $26,149,376)
     99.4 %     29,387,049  
     
Other Assets Less Liabilities
     0.6 %     174,192  
     
NET ASSETS
     100.0 %   $ 29,561,241  
 
* Non-income Producing
 
# The security is valued at its fair value as determined in good faith by the Adviser to the Fund, in accordance with procedures established by, and under the general supervision of the Fund’s Board of Trustees.
 
† Indicates yield as of March 31, 2011
See accompanying notes to schedule of investments.
 
 
 

Cheswold Lane International High Dividend Fund
Schedule of Investments (Continued)
 
March 31, 2011


Investments by Country (unaudited)
(As a Percentage of Long-term Investments)

Australia
     11.3 %
Austria
     2.7  
France
     10.7  
Germany
     13.2  
Hong Kong
     1.2  
Ireland
     0.6  
Italy
     1.7  
Japan
     19.5  
Netherlands
     5.2  
Singapore
     2.9  
Spain
     1.8  
Switzerland
     12.9  
United Kingdom
     16.3  
Total
     100.0 %

See accompanying notes to schedule of investments.
 
 
 
Cheswold Lane International High Dividend Fund
NOTES TO SCHEDULE OF INVESTMENTS
March 31, 2011
(Unaudited)

Note 1.   Federal Income Tax Information
 
At March 31, 2011, gross unrealized appreciation and depreciation of investments owned by the Fund, based on cost for federal income tax purposes, were as follows:
 
Aggregate cost of investments
   $ 26,452,090  
Gross unrealized appreciation
     4,839,576  
Gross unrealized depreciation
     (1,904,617 )
Net unrealized appreciation on investments
   $ 2,934,959  
 
The difference between cost amounts for financial statement and federal income tax purposes is due primarily to timing differences in recognizing certain gains and losses in security transactions.
 
Note 2.   Fair Value Measurements
 
Under Fair Value Measurements, various inputs are used in determining the value of the Fund’s investments. These inputs are summarized into three broad levels as described below:

• Level 1 − quoted prices in active markets for identical securities. An active market for the security is a market in which transactions occur with sufficient frequency and volume to provide pricing information on an ongoing basis. A quoted price in an active market provides the most reliable evidence of fair value.

• Level 2 − other significant observable inputs (including quoted prices for similar securities, interest rates, prepayment speeds, credit risk, etc.) Quoted prices for identical or similar assets in markets that are not active. Inputs that are derived principally from or corroborated by observable market data. An adjustment to any observable input that is significant to the fair value may render the measurement a Level 3 measurement.

• Level 3 − significant unobservable inputs, including the Fund’s own assumptions in determining the fair value of investments. The inputs or methodology used for valuing securities are not necessarily an indication of the risk associated with investing in those securities. The following is a summary of the inputs used to value the Fund’s investments as of March 31, 2011:
 
 
 

Sectors
Level 1
Level 2
Level 3
Total
Consumer Discretionary
$    5,224,458
                 -
          -
$    5,224,458
Consumer Staples
5,531,848
                 -
          -
5,531,848
Energy
5,215,188
                 -
          -
5,215,188
Financials
4,086,024
$   190,188
          -
4,276,212
Health Care
1,159,825
                 -
          -
1,159,825
Industrials
2,224,991
                 -
          -
2,224,991
Information Technology
1,075,800
                 -
          -
1,075,800
Materials
3,589,289
                 -
          -
3,589,289
Telecommunication Services
1,071,211
                 -
          -
1,071,211
Short-term Investments
18,227
                 -
          -
18,227
Total
$   29,196,861
$   190,188
          -
$   29,387,049

In accordance with procedures established by, and under the general supervision of, the Fund’s Board of Trustees, the values of certain equity securities listed or traded on foreign security exchanges may be valued at their fair value using a quantitative methodology when certain triggering factors, representing a significant change in the value of U.S.-traded securities, occur.  In this circumstance, which did not occur on March 31, 2011, such securities are categorized as Level 2.  At March 31, 2011, two securities halted trading and required fair value pricing from the Adviser. These securities are categorized as Level 2 until such securities resume active trading or otherwise meet the necessary requirement to be categorized as Level 1. Such securities represent the only significant transfers between each of the three levels.
 
 
 


Item 2.  Controls and Procedures.

(a)
The registrant’s principal executive officer and principal financial officer have reviewed the registrant’s disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940, as amended (the “1940 Act”)) as of a date within 90 days of the filing of this report and have concluded that the disclosure controls and procedures are effective in ensuring that information required to be disclosed in this report is appropriately recorded, processed, summarized, reported and made known to them by others within the registrant and by the registrant’s service providers.

(b)
There were no changes in the registrant’s internal control over financial reporting (as defined in Rule 30a-3(d) under the 1940 Act) that occurred during the registrant’s last fiscal quarter that materially affected, or were reasonably likely to materially affect, the registrant’s internal control over financial reporting.

Item 3.  Exhibits.

Certifications, as required by Rule 30a-2(a) under the 1940 Act, for the Principal Executive Officer and Principal Financial Officer are filed herewith.


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) Cheswold Lane Funds

By: /s/ Eric F. Scharpf
 
     Eric F. Scharpf, President and Chief Executive Officer
     (Principal Executive Officer)
     Date:  May 25, 2011

Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated.

By: /s/ Eric F. Scharpf

     Eric F. Scharpf, President and Chief Executive Officer
     (Principal Executive Officer)
     Date:  May 25, 2011
 
By: /s/ Matthew H. Taylor
     Matthew H. Taylor, Executive Vice President, Chief Financial Officer, and Treasurer
     (Principal Financial Officer)
     Date:  May 25, 2011
 
 
 

EX-99.CERT 2 v223416_ex99-cert.htm Unassociated Document
Ex-99.CERT
Cheswold Lane Funds
Exhibit 3 to Form N-Q


CERTIFICATIONS


I, Eric F. Scharpf, certify that:

1. I have reviewed this report on Form N-Q of Cheswold Lane Funds;

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 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) and internal control over financial reporting (as defined in Rule 30a-3(d) 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) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

(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 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 25, 2011

/s/ Eric F. Scharpf

Eric F. Scharpf
President and Chief Executive Officer
(Principal Executive Officer)

 
 
 

Ex-99.CERT
Cheswold Lane Funds
Exhibit 3 to Form N-Q


CERTIFICATIONS


I, Matthew H. Taylor, certify that:

1. I have reviewed this report on Form N-Q of Cheswold Lane Funds;

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 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) and internal control over financial reporting (as defined in Rule 30a-3(d) 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) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

(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 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 25, 2011

/s/ Matthew H. Taylor

Matthew H. Taylor
Executive Vice President, Chief Financial Officer and Treasurer
(Principal Financial Officer)