N-Q 1 a11-27356_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 COMPANY

 

Investment Company Act file number

811-06062

 

 

THE THAI CAPITAL FUND, INC.

(Exact name of registrant as specified in charter)

 

c/o Daiwa Securities Trust Company
One Evertrust Plaza
Jersey City, New Jersey

 

07302

(Address of principal executive offices)

 

(Zip code)

 

John J. O’Keefe
The Thai Capital Fund, Inc.
c/o Daiwa Securities Trust Company
One Evertrust Plaza
Jersey City, New Jersey  07302

(Name and address of agent for service)

 

Registrant’s telephone number, including area code:

(201) 915-3054

 

 

Date of fiscal year end:

December 31

 

 

 

 

Date of reporting period:

September 30, 2011

 

 


 

Item 1. Schedule of Investments. — The schedule of investments for the three-month period ended September 30, 2011 is filed herewith.

 


 

The Thai Capital Fund, Inc.

Consolidated Portfolio of Investments

September 30, 2011 (unaudited)

 

COMMON STOCKS—97.28%

 

Shares

 

 

 

Value

 

Banks—20.68%

 

 

 

376,500

 

Bangkok Bank Public Co., Ltd.

 

1,705,980

 

1,322,800

 

Bank of Ayudhya Public Co., Ltd.

 

850,186

 

494,800

 

Kasikornbank Public Co., Ltd.

 

1,860,395

 

3,222,600

 

Krung Thai Bank Public Co., Ltd.

 

1,594,839

 

642,800

 

Tisco Financial Group Public Co., Ltd.

 

743,649

 

 

 

 

 

6,755,049

 

Commerce—9.83%

 

 

 

178,200

 

Big C Supercenter Public Co., Ltd.

 

647,107

 

1,217,500

 

CP ALL Public Co., Ltd.

 

1,878,019

 

97,600

 

Siam Makro Public Co., Ltd.

 

683,748

 

 

 

 

 

3,208,874

 

Communication—5.97%

 

 

 

420,200

 

Advanced Info Service Public Co., Ltd.

 

1,728,446

 

92,700

 

Total Access Communication Public Co., Ltd.

 

220,446

 

 

 

 

 

1,948,892

 

Construction—7.42%

 

 

 

288,000

 

The Siam Cement Public Co., Ltd.

 

2,424,842

 

 

 

 

 

 

 

Energy—20.92%

 

 

 

55,700

 

Banpu Public Co., Ltd.

 

937,942

 

4,984,300

 

IRPC Public Co., Ltd.

 

560,611

 

793,400

 

PTT Aromatics & Refining Public Co., Ltd.

 

627,216

 

249,700

 

PTT Exploration and Production Public Co., Ltd.

 

1,119,393

 

258,100

 

PTT Public Co., Ltd.

 

2,156,508

 

876,800

 

Thai Oil Public Co., Ltd.

 

1,429,968

 

 

 

 

 

6,831,638

 

Food & Beverage—10.48%

 

 

 

2,358,400

 

Charoen Pokphand Foods Public Co., Ltd.

 

2,027,360

 

2,106,700

 

Minor International Public Co., Ltd.

 

697,316

 

420,500

 

Thai Union Frozen Products Public Co., Ltd.

 

699,304

 

 

 

 

 

3,423,980

 

Health Care Services—2.88%

 

 

 

457,000

 

Bangkok Dusit Medical Services Public Co., Ltd.

 

939,909

 

 

 

 

 

 

 

Media & Publishing—1.00%

 

 

 

277,300

 

BEC World Public Co., Ltd.

 

327,489

 

 

 

 

 

 

 

Petrochemicals—7.30%

 

 

 

728,300

 

Indorama Ventures Public Co., Ltd.

 

643,625

 

546,700

 

PTT Chemical Public Co., Ltd.

 

1,739,298

 

 

 

 

 

2,382,923

 

Property Development—10.80%

 

 

 

2,205,300

 

Asian Property Development Public Co., Ltd.

 

386,237

 

480,900

 

Central Pattana Public Co., Ltd.

 

529,304

 

1,112,700

 

L.P.N. Development Public Co., Ltd.

 

396,909

 

4,043,600

 

Land and Houses Public Co., Ltd.

 

844,639

 

 

See accompanying notes to consolidated financial statements.

 

1


 

934,000

 

Pruksa Real Estate Public Co., Ltd.

 

429,213

 

2,000,700

 

SinoThai Engineering & Construction Public Co., Ltd.

 

591,507

 

833,400

 

Supalai Public Co., Ltd.

 

350,844

 

 

 

 

 

3,528,653

 

 

 

 

 

Total Common Stocks (Cost—$39,655,760)

 

31,772,249

 

 

 

 

 

SHORT-TERM INVESTMENTS—6.80%

 

 

 

 

 

 

 

Principal

 

 

 

 

 

Amount

 

 

 

 

 

(000)

 

 

 

Value

 

THAI BAHT SAVINGS ACCOUNT—6.23%

 

 

 

63,316

 

Bangkok Bank Savings Account, 0.75%, due 10/3/11

 

2,034,721

 

 

 

 

 

U.S. DOLLAR TIME DEPOSIT—0.57%

 

 

 

188

 

JPMorgan Chase Bank, 0.10%, due 10/3/11

 

187,507

 

 

 

 

 

Total Short-Term Investments (Cost—$2,256,483)

 

2,222,228

 

Total Investments—104.08%
(Cost—$41,912,243)

 

33,994,477

 

 

 

 

 

Liabilities in excess of other assets—(4.08%)

 

(1,332,782

)

 

 

 

 

 

 

NET ASSETS

 

(Applicable to 3,564,814 shares of capital stock outstanding; equivalent to $9.16 per share)

100.00%

 

$

32,661,695

 

 

See accompanying notes to consolidated financial statements.

 

2


 

Fair Value Measurements - In accordance with the authoritative guidance on fair value measurements and disclosures under GAAP, the Fund discloses the fair value of its investments in a hierarchy that prioritizes the inputs to valuation techniques used to measure the fair value.  The hierarchy gives the highest priority to valuations based upon unadjusted quoted prices in active markets for identical assets or liabilities (level 1 measurements) and the lowest priority to valuations based upon unobservable inputs that are significant to the valuation (level 3 measurements).  The guidance establishes three levels of fair value hierarchy as follows:

 

Level 1 — Inputs that reflect unadjusted quoted prices in active markets for identical assets or liabilities that the Fund has the ability to access at the measurement date;

Level 2 — Inputs other than quoted prices that are observable for the asset or liability either directly or indirectly, including inputs in markets that are not considered to be active;

Level 3 — Inputs that are unobservable.

 

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.  However, the determination of what constitutes “observable” requires significant judgment by the Fund’s manager.  The Fund’s manager considers observable data to be market data which is readily available, regularly distributed or updated, reliable and verifiable, not proprietary, and provided by independent sources that are actively involved in the relevant market.

 

The following is a summary of the inputs used as of September 30, 2011 in valuing the Fund’s investments carried at value:

 

Valuation Inputs

 

Investments in Securities

 

Level 1 — Quoted Prices

 

$

33,994,477

 

Level 2 — Other Significant Observable Inputs

 

—

 

Level 3 — Significant Unobservable Inputs

 

—

 

 

 

 

 

Total

 

$

33,994,477

 

 

As all assets of the Fund are classified as Level 1, no reconciliation of Level 3 assets as of September 30, 2011 is presented.

 

All portfolio holdings designated as Level 1 are disclosed individually in the Portfolio of Investments (POI).  Please refer to the POI for industry specifics of the portfolio holdings.

 

For federal income tax purposes, the cost of securities owned at September 30, 2011 was $39,665,977, excluding short-term interest-bearing investments.  At September 30, 2011, the net unrealized depreciation on investments, excluding short-term securities, of $7,893,728 was composed of gross appreciation of $500,673 for those investments having an excess of value over cost, and gross depreciation of $8,394,401 for those investments having an excess of cost over value.

 


 

Item 2. Controls and Procedures.

 

a)              The Registrant’s Principal Executive Officer and Principal Financial Officer 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))) were effective as of a date within 90 days prior to the filing date of this report (the “Evaluation Date”), based on their evaluation of the effectiveness of the Registrant’s disclosure controls and procedures required by Rule 30a-3(b) under the Investment Company Act of 1940 (17 CFR 270.30a-3(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)), as of the Evaluation Date.

 

b)             There were no changes 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.

 

The Thai Capital Fund, Inc.

 

 

 

 

 

By

\s\ John J. O’Keefe

 

 

John J. O’Keefe, Principal Financial Officer

 

 

 

 

 

Date: October 6, 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\ John J. O’Keefe

 

Date: October 6, 2011

John J. O’Keefe, Principal Financial Officer

 

 

 

 

 

By

\s\ Anthony Cambria

 

Date: October 6, 2011

Anthony Cambria, Principal Executive Officer