0000088053-18-000283.txt : 20180329 0000088053-18-000283.hdr.sgml : 20180329 20180329123037 ACCESSION NUMBER: 0000088053-18-000283 CONFORMED SUBMISSION TYPE: N-Q PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 20180131 FILED AS OF DATE: 20180329 DATE AS OF CHANGE: 20180329 EFFECTIVENESS DATE: 20180329 FILER: COMPANY DATA: COMPANY CONFORMED NAME: DEUTSCHE INTERNATIONAL FUND, INC. CENTRAL INDEX KEY: 0000088053 IRS NUMBER: 132827803 FISCAL YEAR END: 0331 FILING VALUES: FORM TYPE: N-Q SEC ACT: 1940 Act SEC FILE NUMBER: 811-00642 FILM NUMBER: 18721809 BUSINESS ADDRESS: STREET 1: 345 PARK AVENUE CITY: NEW YORK STATE: NY ZIP: 10154-0004 BUSINESS PHONE: 212-454-6778 MAIL ADDRESS: STREET 1: 345 PARK AVENUE CITY: NEW YORK STATE: NY ZIP: 10154-0004 FORMER COMPANY: FORMER CONFORMED NAME: DWS INTERNATIONAL FUND, INC. DATE OF NAME CHANGE: 20060207 FORMER COMPANY: FORMER CONFORMED NAME: SCUDDER INTERNATIONAL FUND INC DATE OF NAME CHANGE: 19920703 FORMER COMPANY: FORMER CONFORMED NAME: SCUDDER INTERNATIONAL INVESTMENTS LTD DATE OF NAME CHANGE: 19761203 0000088053 S000031160 Deutsche Global Macro Fund C000096693 Class A DBISX C000096695 Class C DBICX C000096696 Class R DBITX C000096697 Class S DBIVX C000096698 Institutional Class MGINX N-Q 1 nq013118int_gmf.htm DEUTSCHE GLOBAL MACRO FUND

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, DC 20549

 

FORM N-Q

QUARTERLY SCHEDULE OF PORTFOLIO HOLDINGS OF REGISTERED

MANAGEMENT INVESTMENT COMPANY

_______________________________

Investment Company Act file number: 811-00642

Deutsche International Fund, Inc.

(Exact name of registrant as specified in charter)

 

345 Park Avenue
New York, NY 10154-0004

(Address of principal executive offices) (Zip code)

 

Paul Schubert

345 Park Avenue

New York, NY 10154-0004

(Name and address of agent for service)

Registrant's telephone number, including area code: (212) 250-3220

Date of fiscal year end: 10/31

Date of reporting period: 1/31/2018

 

ITEM 1. SCHEDULE OF INVESTMENTS

 

Investment Portfolio as of January 31, 2018 (Unaudited)

 

 

Deutsche Global Macro Fund  

 

  Shares   Value ($)
Common Stocks 43.9%
Belgium 0.6%
bpost SA  (Cost $80,359)   3,081   102,439
France 5.4%
AXA SA     4,561   150,034
Danone SA     1,722   148,502
Essilor International Cie Generale d'Optique SA     618   87,777
Ingenico Group SA     2,519   286,788
Sanofi     861   76,025
Societe Generale SA     1,614   93,891
TOTAL SA     2,549   147,586
(Cost $875,766)   990,603
Germany 14.2%
Allianz SE (Registered)     912   230,422
BASF SE     2,052   240,295
Bayer AG (Registered)     1,530   200,253
CTS Eventim AG & Co. KGaA     1,500   75,014
Daimler AG (Registered)     511   46,777
Deutsche Post AG (Registered)     4,895   231,366
Deutsche Telekom AG (Registered)     51,003   894,434
E.ON SE     4,106   43,122
Evonik Industries AG     12,080   476,934
SAP SE     1,647   185,732
(Cost $2,291,140)   2,624,349
Italy 0.1%
PRADA SpA  (Cost $13,495)   3,100   12,681
Japan 1.7%
FANUC Corp.     100   26,999
Murata Manufacturing Co., Ltd.     600   88,541
Panasonic Corp.     13,300   197,240
(Cost $302,240)   312,780
Netherlands 2.2%
Koninklijke Ahold Delhaize NV     8,215   183,282
Royal Dutch Shell PLC "A"     6,423   225,159
(Cost $339,141)   408,441
Russia 0.5%
Gazprom PJSC (ADR)  (Cost $79,399)   17,241   85,860
Singapore 0.4%
Singapore Exchange Ltd.     4,100   25,629
Singapore Telecommunications Ltd.     19,500   52,771
(Cost $74,130)   78,400
Spain 1.6%
Banco Santander SA  (Cost $265,152)   40,545   301,176
Switzerland 3.6%
Nestle SA (Registered)     3,539   305,782
Novartis AG (Registered)     2,142   193,775
Roche Holding AG (Genusschein)     642   158,267
(Cost $458,055)   657,824
Taiwan 1.5%
Taiwan Semiconductor Manufacturing Co., Ltd.  (Cost $217,500)   32,000   279,975
United Kingdom 2.3%
Reckitt Benckiser Group PLC     2,039   196,952
Smith & Nephew PLC     1,014   18,270
Unilever NV (CVA)     2,754   159,507
Vodafone Group PLC     17,651   56,289
(Cost $393,394)   431,018
United States 9.8%
Alphabet, Inc. "A"*     163   192,702
American Express Co.     1,338   132,997
AT&T, Inc.     4,589   171,858
CVS Health Corp.     620   48,788
Facebook, Inc. "A"*     277   51,769
General Electric Co.     9,239   149,395
Mastercard, Inc. "A"     1,428   241,332
Microsoft Corp.     1,540   146,315
Monsanto Co.     2,453   298,775
Pfizer, Inc.     2,993   110,861
Regions Financial Corp.     3,247   62,440
The Mosaic Co.     2,478   67,649
Wells Fargo & Co.     2,040   134,191
(Cost $1,528,030)   1,809,072
Total Common Stocks (Cost $6,917,801)   8,094,618
  Principal
Amount ($) (a)
  Value ($)
Bonds 31.3%
France 3.5%
BNP Paribas SA, REG S, 3-month EURIBOR + 0.850%, 0.521% **, 9/22/2022 EUR   357,000   454,920
SFR Group SA, REG S, 6.25%, 5/15/2024     200,000   191,250
(Cost $608,997)   646,170
Italy 8.8%
Republic of Italy:  
  0.7%, 5/1/2020   829,000   1,046,032
  REG S, 4.5%, 2/1/2020   429,000   581,791
(Cost $1,426,712)   1,627,823
Mexico 2.2%
America Movil SAB de CV, REG S, Zero Coupon, 5/28/2020 EUR   100,000   122,913
Petroleos Mexicanos, REG S, 6.5%, 3/13/2027     263,000   287,688
(Cost $394,167)   410,601
Netherlands 3.8%
Petrobras Global Finance BV:  
  5.375%, 1/27/2021   330,000   343,530
  8.375%, 5/23/2021   308,000   351,004
(Cost $677,117)   694,534
United Kingdom 3.6%
Anglo American Capital PLC, REG S, 1.75%, 4/3/2018 EUR   165,000   205,472
HSBC Holdings PLC, REG S, 3-month EURIBOR + 0.700%, 0.371% **, 9/27/2022 EUR   356,000   448,878
(Cost $579,628)   654,350
United States 9.4%
Arconic, Inc., 5.125%, 10/1/2024     277,000   292,927
T-Mobile U.S.A., Inc.:  
  6.0%, 3/1/2023   321,000   335,975
  6.375%, 3/1/2025   250,000   265,938
The Goldman Sachs Group, Inc., REG S, 3-month EURIBOR + 1.000%, 0.673% **, 7/27/2021 EUR   352,000   447,957
Transocean, Inc., 6.5%, 11/15/2020     79,000   83,543
Twitter, Inc., 1.0%, 9/15/2021     96,000   90,467
U.S. Treasury Note, 1.125%, 2/28/2019     166,400   164,879
VeriSign, Inc., 5.25%, 4/1/2025     55,000   58,300
(Cost $1,683,944)   1,739,986
Total Bonds (Cost $5,370,565)   5,773,464
  Shares   Value ($)
Exchange-Traded Funds 5.4%
iShares Floating Rate Bond ETF     11,747   599,332
SPDR Bloomberg Barclays 1-3 Month T-Bill ETF     4,350   398,112
Total Exchange-Traded Funds (Cost $995,390)   997,444
Cash Equivalents 16.5%
Deutsche Central Cash Management Government Fund, 1.34% (b) (Cost $3,030,642)     3,030,642   3,030,642
  % of
Net Assets
  Value ($)
Total Investment Portfolio (Cost $16,314,398) 97.1   17,896,168
Other Assets and Liabilities, Net 2.9   525,957
Net Assets 100.0   18,422,125
                       

For information on the Fund's policies regarding the valuation of investments and other significant accounting policies, please refer to the Fund's most recent semi-annual or annual financial statements.

* Non-income producing security.
** Variable or floating rate security. These securities are shown at their current rate as of January 31, 2018. For securities based on a published reference rate and spread, the reference rate and spread are indicated within the description above. Certain variable rate securities are not based on a published reference rate and spread but adjust periodically based on current market conditions, prepayment of underlying positions and/or other variables.
(a) Principal amount stated in U.S. dollars unless otherwise noted.
(b) Affiliated fund managed by Deutsche Investment Management Americas Inc.  The rate shown is the annualized seven-day yield at period end.

ADR: American Depositary Receipt
CVA: Certificaten Van Aandelen (Certificate of Stock)
EURIBOR: Euro Interbank Offered Rate
PJSC: Public Joint Stock Company
REG S: Securities sold under Regulation S may not be offered, sold or delivered within the United States or to, or for the account or benefit of, U.S. persons, except pursuant to an exemption from, or in a transaction not subject to, the registration requirements of the Securities Act of 1933.
SPDR: Standard & Poor's Depositary Receipt
 
At January 31, 2018, open futures contracts purchased were as follows:

Futures Currency Expiration
Date
Contracts Notional
Amount ($)
Notional
Value ($)
Unrealized
Depreciation ($)
 

Mini DAX

EUR

3/16/2018

2

164,090

163,655

(435)

 

At January 31, 2018, open futures contracts sold were as follows:

Futures Currency Expiration
Date
Contracts Notional
Amount ($)
Notional
Value ($)
Unrealized
Appreciation
(Depreciation) ($)
 

Euro-BTP Italian Government Bond

EUR

3/8/2018

2

   346,190

   337,652

  8,538

Hang Seng China Enterprises Index

HKD

2/27/2018

5

   430,195

   434,571

 (4,376)

NASDAQ 100 E-Mini Index

USD

3/16/2018

9

1,191,187

1,253,250

(62,063)

S&P 500 E-Mini Index

USD

3/16/2018

2

   268,219

   282,580

(14,361)

U.S. Treasury Long Bond

USD

3/20/2018

5

   765,619

   739,063

26,556

Total net unrealized depreciation (45,706)

 

As of January 31, 2018, the Fund had the following open forward foreign currency contracts:

 

Contracts to Deliver In Exchange For Settlement
Date
Unrealized
Appreciation ($)
Counterparty

EUR

10,826,459

USD

13,484,744

2/28/2018

19,448

Bank of America

Contracts to Deliver In Exchange For Settlement
Date
Unrealized
Depreciation ($)
Counterparty

USD

127,043

KRW

135,091,160

2/28/2018

   (488)

Australia and New Zealand Banking Group Ltd.

USD

219,157

JPY

23,761,495

2/28/2018

(1,176)

Bank of America

USD

230,264

EUR

184,948

2/28/2018

   (237)

Bank of America

CHF

562,695

USD

602,954

2/28/2018

(2,877)

Citigroup, Inc.

EUR

126,250

USD

156,955

2/28/2018

     (67)

Toronto-Dominion Bank

Total unrealized depreciation   (4,845)  

Currency Abbreviations  
_________________________________________________________________________________________________

 

CHF Swiss Franc      
EUR Euro      
HKD Hong Kong Dollar      
JPY Japanese Yen      
KRW South Korean Won      
USD United States Dollar      
 

At January 31, 2018 the Deutsche Global Macro Fund had the following sector diversification:

Sector Diversification Market Value ($) As a % of Common Stocks and Corporate Bonds
Financials 2,482,535 21%
Telecommunication Services 2,048,945 17%
Materials 1,582,052 13%
Energy 1,524,370 13%
Information Technology 1,473,154 12%
Consumer Staples 1,042,813 9%
Health Care 845,228 7%
Consumer Discretionary 522,962 4%
Industrials 510,199 4%
Utilities 43,122 0%
Total 12,075,380 100.0  
           

Sector diversification is subject to change.

 

Fair Value Measurements

 

Various inputs are used in determining the value of the Fund's investments. These inputs are summarized in three broad levels. Level 1 includes quoted prices in active markets for identical securities. Level 2 includes other significant observable inputs (including quoted prices for similar securities, interest rates, prepayment speeds, and credit risk). Level 3 includes significant unobservable inputs (including the Fund's own assumptions in determining the fair value of investments). The level assigned to the securities valuations may not be an indication of the risk or liquidity associated with investing in those securities.

 

The following is a summary of the inputs used as of January 31, 2018 in valuing the Fund's investments.

Assets   Level 1   Level 2   Level 3   Total
Common Stocks (c)                
  Belgium $ 102,439 $ $ $ 102,439
  France   990,603       990,603
  Germany   2,624,349       2,624,349
  Italy   12,681       12,681
  Japan   312,780       312,780
  Netherlands   408,441       408,441
  Russia   85,860       85,860
  Singapore   78,400       78,400
  Spain   301,176       301,176
  Switzerland   657,824       657,824
  Taiwan   279,975       279,975
  United Kingdom   431,018       431,018
  United States   1,809,072       1,809,072
Bonds (c)     5,773,464     5,773,464
Exchange-Traded Funds   997,444       997,444
Short-Term Investments   3,030,642       3,030,642
Derivatives (d)                
  Futures Contracts   35,094       35,094
  Forward Foreign Currency Contracts     19,448     19,448
Total $ 12,157,798 $ 5,819,912 $ $ 17,950,710
Liabilities   Level 1   Level 2   Level 3   Total
Derivatives (d)                
  Futures Contracts $ (81,235) $ $ $ (81,235)
  Forward Foreign Currency Contracts     (4,845)     (4,845)
Total $ (81,235) $ (4,845) $ $ (86,080)

As a result of the fair valuation model utilized by the Fund, certain international securities transferred from Level 2 to Level 1. During the period ended January 31, 2018, the amount of the transfers between Level 2 and Level 1 was $2,324,235

 

Transfers between price levels are recognized at the beginning of the reporting period.

 

(c) See Investment Portfolio for additional detailed categorizations.  
(d) Derivatives include unrealized appreciation (depreciation) on open futures contracts and forward foreign currency contract.  
 

Derivatives

 

The following table presents, by major type of derivative contract, the unrealized appreciation (depreciation) of the Fund's derivative instruments as of January 31, 2018 categorized by the primary underlying risk exposure. 

 

 

 Primary Underlying Risk Disclosure

Futures Forward Currency Contracts
Equity Contracts   $   (81,235)   $       —
Foreign Exchange Contracts   $       —   $   14,603
Interest Rate Contracts   $     35,094   $       —

 

  

ITEM 2. CONTROLS AND PROCEDURES
   
  (a) The Chief Executive and Financial Officers concluded that the Registrant’s Disclosure Controls and Procedures are effective based on the evaluation of the Disclosure Controls and Procedures as of a date within 90 days of the filing date of this report.
   
  (b) There have been no changes in the registrant’s internal control over financial reporting that occurred during the registrant’s last fiscal quarter that has materially affected, or is reasonably likely to materially affect, the registrant’s internal controls over financial reporting.
   
ITEM 3. EXHIBITS
   
  Certification pursuant to Rule 30a-2(a) under the Investment Company Act of 1940 (17 CFR 270.30a-2(a)) is filed and attached hereto as Exhibit 99.CERT.

 

 

 

 

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: Deutsche Global Macro Fund, a series of Deutsche International Fund, Inc.
   
By:

/s/Hepsen Uzcan

Hepsen Uzcan

President

   
Date: March 23, 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/Hepsen Uzcan

Hepsen Uzcan

President

   
Date: March 23, 2018
   
   
   
By:

/s/Paul Schubert

Paul Schubert

Chief Financial Officer and Treasurer

   
Date: March 23, 2018

EX-99.CERT 2 ex99cert.htm CERTIFICATIONS

CERTIFICATIONS

I, Hepsen Uzcan, certify that:

1.I have reviewed this report on Form N-Q of Deutsche Global Macro Fund, a series of Deutsche International 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) 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(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.

 

   
By:

/s/Hepsen Uzcan

Hepsen Uzcan

President

   
Date: March 23, 2018

 

 
 

CERTIFICATIONS

I, Paul Schubert, certify that:

1.I have reviewed this report on Form N-Q of Deutsche Global Macro Fund, a series of Deutsche International 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) 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(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.

 

   
By:

/s/Paul Schubert

Paul Schubert

Chief Financial Officer and Treasurer

   
Date: March 23, 2018