N-Q 1 a18-12557_1nq.htm N-Q

 

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:

 

811-06024

 

 

 

Exact name of registrant as specified in charter:

 

Aberdeen Indonesia Fund, Inc.

 

 

 

Address of principal executive offices:

 

1735 Market Street, 32nd Floor

Philadelphia, PA 19103

 

 

 

Name and address of agent for service:

 

Ms. Andrea Melia

Aberdeen Asset Management Inc.

1735 Market Street, 32nd Floor

Philadelphia, PA 19103

 

 

 

Registrant’s telephone number, including area code:

 

1-800-522-5465

 

 

 

Date of fiscal year end:

 

December 31

 

 

 

Date of reporting period:

 

March 31, 2018

 


 

Item 1. Schedule of Investments

 

The schedule of investments for the three-month period ended  March 31, 2018 is filed herewith.

 


 

Portfolio of Investments (unaudited)

 

As of March 31, 2018

 

Shares

 

Description

 

Industry and Percentage
of Net Assets

 

Value
(US$)

 

LONG-TERM INVESTMENTS—98.7%

 

 

 

 

 

COMMON STOCKS—96.7%

 

 

 

 

 

INDONESIA—81.7%

 

 

 

 

 

26,607,300

 

Ace Hardware Indonesia Tbk PT

 

Specialty Retail— 3.5%

 

$

2,570,380

 

3,800,000

 

AKR Corporindo Tbk PT (a)

 

Trading Companies & Distributors— 2.2%

 

1,573,683

 

320,000

 

Astra Agro Lestari Tbk PT (a)

 

Food Products— 0.4%

 

313,744

 

4,616,610

 

Astra International Tbk PT (a)

 

Automobiles— 3.4%

 

2,455,131

 

5,461,000

 

Bank Central Asia Tbk PT (a)

 

Banks— 12.7%

 

9,277,067

 

8,171,684

 

Bank OCBC NISP Tbk PT (b)

 

Banks— 1.5%

 

1,112,904

 

58,232,342

 

Bank Permata Tbk PT (a)(b)

 

Banks— 3.4%

 

2,480,202

 

531,500

 

Delfi Ltd.

 

Food Products— 0.8%

 

595,893

 

10,900,000

 

Hanjaya Mandala Sampoerna Tbk PT (a)

 

Tobacco— 4.3%

 

3,164,638

 

14,945,000

 

Hero Supermarket Tbk PT (b)

 

Food & Staples Retailing— 1.4%

 

1,020,396

 

26,171,800

 

Holcim Indonesia Tbk PT (b)

 

Construction Materials— 2.1%

 

1,520,787

 

1,090,000

 

Indo Tambangraya Megah Tbk PT (a)

 

Oil, Gas & Consumable Fuels— 3.1%

 

2,262,180

 

3,447,700

 

Indocement Tunggal Prakarsa Tbk PT (a)

 

Construction Materials— 5.5%

 

4,032,661

 

19,400,000

 

Kalbe Farma Tbk PT (a)

 

Pharmaceuticals— 2.9%

 

2,120,285

 

2,100,100

 

Mandom Indonesia Tbk PT

 

Personal Products— 3.4%

 

2,494,036

 

2,405,500

 

Merck Tbk PT

 

Pharmaceuticals— 1.5%

 

1,100,755

 

24,483,000

 

Ramayana Lestari Sentosa Tbk PT (a)

 

Multiline Retail— 3.3%

 

2,406,019

 

956,100

 

Saratoga Investama Sedaya Tbk PT (a)

 

Capital Markets— 0.4%

 

275,935

 

39,100,000

 

Sepatu Bata Tbk PT

 

Textiles, Apparel & Luxury Goods— 2.3%

 

1,689,813

 

4,600,000

 

Surya Citra Media Tbk PT (a)

 

Media— 1.2%

 

910,760

 

21,797,800

 

Telekomunikasi Indonesia Persero Tbk PT (a)

 

Diversified Telecommunication Services— 7.8%

 

5,731,839

 

16,769,200

 

Ultrajaya Milk Industry & Trading Co. Tbk PT (a)

 

Food Products— 2.6%

 

1,936,775

 

1,070,800

 

Unilever Indonesia Tbk PT (a)

 

Household Products— 5.3%

 

3,862,594

 

680,000

 

United Tractors Tbk PT (a)

 

Oil, Gas & Consumable Fuels— 2.2%

 

1,586,428

 

44,992,047

 

Wintermar Offshore Marine Tbk PT (b)

 

Energy Equipment & Services— 1.5%

 

1,124,188

 

12,027,500

 

XL Axiata Tbk PT (a)(b)

 

Wireless Telecommunication Services— 3.0%

 

2,213,674

 

 

 

 

 

 

 

59,832,767

 

SINGAPORE—6.9%

 

 

 

 

 

191,029

 

Jardine Cycle & Carriage Ltd. (a)

 

Distributors— 6.9%

 

5,046,293

 

UNITED KINGDOM—8.1%

 

 

 

 

 

567,527

 

M.P. Evans Group PLC

 

Food Products—8.1%

 

5,971,806

 

 

 

Total Common Stocks

 

 

 

70,850,866

 

 

 

 

 

 

 

 

 

Shares

 

Description

 

Value
(US$)

 

EXCHANGE TRADED FUNDS—2.0%

 

 

 

 

 

UNITED STATES—2.0%

 

 

 

 

 

55,000

 

iShares MSCI Indonesia ETF

 

 

 

1,482,800

 

 

 

Total Exchange Traded Funds

 

 

 

1,482,800

 

 

 

Total Long-Term Investments—98.7% (cost $59,571,027)

 

72,333,666

 

 

See Notes to Portfolio of Investments.

 

Aberdeen Indonesia Fund, Inc.

 


 

Portfolio of Investments (unaudited) (concluded)

 

As of March 31, 2018

 

SHORT-TERM INVESTMENT—1.5%

 

 

 

 

 

UNITED STATES—1.5%

 

 

 

 

 

$

1,086,784

 

State Street Institutional U.S. Government Money Market Fund, Institutional Class, 1.61%(c)

 

$

1,086,784

 

 

 

Total Short-Term Investment—1.5% (cost $1,086,784)

 

1,086,784

 

 

 

Total Investments—100.2% (cost $60,657,811)

 

73,420,450

 

 

 

Liabilities in Excess of Other Assets—(0.2)%

 

(153,505

)

 

 

Net Assets—100.0%

 

 

 

$

73,266,945

 

 

(a)         Fair Valued Security. Fair Values are determined pursuant to procedures approved by the Fund’s Board of Directors. Unless otherwise noted, securities are valued by applying valuation factors to the exchange traded price. See Note (a) of the accompanying Notes to Portfolio of Investments.

(b)         Non-income producing security.

(c)          Registered investment company advised by State Street Global Advisors.  The rate shown is the current yield as of March 31, 2018.

 

ETF

Exchange-Traded Fund

PLC

Public Limited Company

 

See Notes to Portfolio of Investments.

 


 

Notes to Portfolio of Investments (unaudited)

 

March 31, 2018

 

Summary of Significant Accounting Policies

 

a. Security Valuation:

 

The Fund values its securities at current market value or fair value, consistent with regulatory requirements. “Fair value” is defined in the Fund’s Valuation and Liquidity Procedures as the price that could be received to sell an asset or paid to transfer a liability in an orderly transaction between willing market participants without a compulsion to transact at the measurement date.

 

Equity securities that are traded on an exchange are valued at the last quoted sale price on the principal exchange on which the security is traded at the “Valuation Time” subject to application, when appropriate, of the valuation factors described in the paragraph below. The Valuation Time is as of the close of regular trading on the New York Stock Exchange (usually 4:00 p.m. Eastern Time). In the absence of a sale price, the security is valued at the mean of the bid/ask price quoted at the close on the principal exchange on which the security is traded. Securities traded on NASDAQ are valued at the NASDAQ official closing price. Closed-end funds and exchange-traded funds (“ETFs”) are valued at the market price of the security at the Valuation Time. A security using any of these pricing methodologies is determined to be a Level 1 investment.

 

Foreign equity securities that are traded on foreign exchanges that close prior to Valuation Time are valued by applying valuation factors to the last sale price or the mean price as noted above. Valuation factors are provided by an independent pricing service provider approved by the Fund’s Board of Directors (the “Board”). These valuation factors are used when pricing the Fund’s portfolio holdings to estimate market movements between the time foreign markets close and the time the Fund values such foreign securities. These valuation factors are based on inputs such as depositary receipts, indices, futures, sector indices/ETFs, exchange rates, and local exchange opening and closing prices of each security. When prices with the application of valuation factors are utilized, the value assigned to the foreign securities may not be the same as quoted or published prices of the securities on their primary markets. A security that applies a valuation factor is determined to be a Level 2 investment because the exchange-traded price has been adjusted. Valuation factors are not utilized if the independent pricing service provider is unable to provide a valuation factor or if the valuation factor falls below a predetermined threshold; in such case, the security is determined to be a Level 1 investment.

 

Short-term investments are comprised of cash and cash equivalents invested in short-term investment funds which are redeemable daily. The Fund sweeps available cash into the State Street Institutional U.S. Government Money Market Fund, which has elected to qualify as a “government money market fund” pursuant to Rule 2a-7 under the 1940 Act, and has an objective, which is not guaranteed, to maintain a $1.00 per share net asset value. Generally, these investment types are categorized as Level 1 investments.

 

In the event that a security’s market quotations are not readily available or are deemed unreliable (for reasons other than because the foreign exchange on which it trades closes before the Valuation Time), the security is valued at fair value as determined by the Fund’s Pricing Committee, taking into account the relevant factors and surrounding circumstances using valuation policies and procedures approved by the Board. A security that has been fair valued by the Fund’s Pricing Committee may be classified as Level 2 or Level 3 depending on the nature of the inputs.

 

In accordance with the authoritative guidance on fair value measurements and disclosures under generally accepted accounting principles in the United States of America, the Fund discloses the fair value of its investments using a three-level hierarchy that classifies the inputs to valuation techniques used to measure the fair value. The hierarchy assigns Level 1, the highest level,  measurements to valuations based upon unadjusted quoted prices in active markets for identical assets, Level 2 measurements to valuations based upon other significant observable inputs, including adjusted quoted prices in active markets for similar assets, and Level 3, the lowest level, measurements to valuations based upon unobservable inputs that are significant to the valuation. Observable inputs are inputs that reflect the assumptions market participants would use in pricing the asset or liability, which are based on market data obtained from sources independent of the reporting entity. Unobservable inputs are inputs that reflect the reporting entity’s own assumptions about the assumptions market participants would use in pricing the asset or liability developed based on the best information

 


 

Notes to Portfolio of Investments (unaudited) (continued)

 

March 31, 2018

 

available in the circumstances. A financial instrument’s level within the fair value hierarchy is based upon the lowest level of any input that is significant to the fair value measurement. The three-level hierarchy of inputs is summarized below:

 

Level 1 — quoted prices in active markets for identical investments;

Level 2 — other significant observable inputs (including quoted prices for similar securities, interest rates, prepayment speeds, and credit risk); or

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

 

The following is a summary of the inputs used as of March 31, 2018 in valuing the Fund’s investments and other financial instruments at fair value. The inputs or methodology used for valuing securities are not necessarily an indication of the risk associated with investing in those securities. Please refer to the Portfolio of Investments for a detailed breakout of the security types:

 

Investments, at Value

 

Level 1-Quoted Prices
($)

 

Level 2-Other Significant
Observable Inputs ($)

 

Level 3-Significant
Unobservable
Inputs ($)

 

Total ($)

 

Investments in Securities

 

 

 

 

 

 

 

 

 

Common Stocks

 

19,200,958

 

51,649,908

 

—

 

70,850,866

 

Exchange Traded Funds

 

1,482,800

 

—

 

—

 

1,482,800

 

Short-Term Investment

 

1,086,784

 

—

 

—

 

1,086,784

 

 

 

21,770,542

 

51,649,908

 

—

 

73,420,450

 

 

Amounts listed as “-” are $0 or round to $0.

 

For movements between the levels within the fair value hierarchy, the Fund has adopted a policy of recognizing transfers at the end of each period. The utilization of valuation factors may result in transfers between Level 1 and Level 2. During the period ended March 31, 2018, securities issued by AKR Corporindo Tbk PT, Astra Agro Lestari Tbk PT, Bank Permata Tbk PT, Hanjaya Mandala Sampoerna Tbk PT, Indocement Tunggal Prakarsa Tbk PT, Kalibe Farma Tbk PT, Ramayana Lestari Sentosa Tbk PT, Saratoga Investama Sedaya Tbk PT, Surya Citra Media Tbk PT, Ultrajaya Milk Industry & Trading Co. Tbk PT, Unilever Indonesia Tbk PT, United Tractors Tbk PT and XL Axiata Tbk PT transferred from Level 1 to Level 2 at the values of $1,573,683, $313,744, $2,480,202, $3,164,638, $4,032,661, $2,120,285, $2,406,019, $275,935, $910,760, $1,936,775, $3,862,594, $1,586,428 and $2,213,674, respectively, because a valuation factor was applied at March 31, 2018. During the period ended March 31, 2018, the security issued by M.P. Evans Group PLC transferred  from Level 2 to Level 1 at the value of $5,971,806 because the security could be valued without the application of a valuation factor at March 31, 2018.

 

For the period ended March 31, 2018, there were no significant changes to the fair valuation methodologies.

 

b. Rights Issues and Warrants:

 

Rights issues give the right, normally to existing shareholders, to buy a proportional number of additional securities at a given price (generally at a discount) within a fixed period (generally a short-term period) and are offered at the company’s

 


 

Notes to Portfolio of Investments (unaudited) (concluded)

 

March 31, 2018

 

discretion. Warrants are securities that give the holder the right to buy common stock at a specified price for a specified period of time. Rights issues and warrants are speculative and have no value if they are not exercised before the expiration date. Rights issues and warrants are valued at the last sale price on the exchange on which they are traded.

 

Subsequent Event

 

The completion of the reorganizations of Aberdeen Emerging Markets Smaller Company Opportunities Fund, Inc. (“ABE”), Aberdeen Israel Fund, Inc. (“ISL”), Aberdeen Indonesia Fund, Inc. (“IF”), Aberdeen Latin America Equity Fund, Inc. (“LAQ”), Aberdeen Singapore Fund, Inc. (“SGF”), Aberdeen Greater China Fund, Inc. (“GCH”) and The Asia Tigers Fund, Inc. (“GRR”) into Aberdeen Chile Fund, Inc. (the “Acquiring Fund”) occurred after the close of regular business on April 27, 2018. Effective April 30, 2018, the Acquiring Fund was renamed Aberdeen Emerging Markets Equity Income Fund, Inc. (the “Combined Fund”). The Combined Fund follows an emerging markets equity income investment strategy that utilizes leverage, and trades on the NYSE American Exchange under the ticker symbol “AEF.” Additional details regarding the Combined Fund are available on its website, www.aberdeenaef.com, including its portfolio composition, as of May 25, 2018, following the preliminary realignment in the first month of trading under the new strategy (under “Announcements”).

 


 

Item 2. Controls and Procedures

 

(a)   The Registrant’s principal executive and principal financial officers, or persons performing similar functions, have concluded that the Registrant’s disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940 (17 CFR 270.30a-3(c))) are effective, as of a date within 90 days of the filing date of the report that includes the disclosure required by this paragraph, based on the evaluation of these controls and procedures required by Rule 30a-3(b) under the Investment Company Act of 1940 (17 CFR 270.30a3(b)) and Rule 13a-15(b) or 15d-15(b) under the Securities Exchange Act of 1934 (17 CFR 240.13a-15(b) or 240.15d-15(b)).

 

(b)   There was no change in the registrant’s internal control over financial reporting (as defined in Rule 30a-3(d) under the Investment Company Act of 1940 (17 CFR 270.30a-3(d))) that occurred during the registrant’s last fiscal quarter that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting.

 

Item 3. Exhibits

 

(a)   Certification of Principal Executive Officer and Principal Financial Officer of the Registrant as required by Rule 30a-2(a) under the Investment Company Act of 1940 (17 CFR 270.30a-2(a)) is attached hereto as Exhibit 99.302CERT.

 


 

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.

 

Aberdeen Indonesia Fund, Inc.

 

 

By:

/s/ Christian Pittard

 

 

Christian Pittard,

 

 

Principal Executive Officer of

 

 

Aberdeen Indonesia Fund, Inc.

 

 

 

 

 

Date: May 30, 2018

 

 

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/ Christian Pittard

 

 

Christian Pittard,

 

 

Principal Executive Officer of

 

 

Aberdeen Indonesia Fund, Inc.

 

 

 

 

 

Date: May 30, 2018

 

 

 

 

 

 

 

By:

/s/ Andrea Melia

 

 

Andrea Melia,

 

 

Principal Financial Officer of

 

 

Aberdeen Indonesia Fund, Inc.

 

 

 

 

 

Date: May 30, 2018