N-Q 1 a11-28299_8nq.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

811-08388

 

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)

 

Arthur Lev
522 Fifth Avenue, New York, New York 10036

(Name and address of agent for service)

 

Registrant’s telephone number, including area code:

212-296-6963

 

 

Date of fiscal year end:

December 31, 2011

 

 

Date of reporting period:

September 30, 2011

 

 


 

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

Third Quarter Report

September 30, 2011 (unaudited)

 

 

 

Shares

 

Value
(000)

 

Common Stocks (92.2%)

 

 

 

 

 

Australia (7.1%)

 

 

 

 

 

Airlines

 

 

 

 

 

Qantas Airways Ltd. (a)

 

2,991,798

 

$

4,006

 

 

 

 

 

 

 

Commercial Banks

 

 

 

 

 

Australia & New Zealand Banking Group Ltd.

 

162,186

 

3,012

 

Commonwealth Bank of Australia

 

75,211

 

3,270

 

 

 

 

 

6,282

 

Energy Equipment & Services

 

 

 

 

 

WorleyParsons Ltd.

 

57,187

 

1,427

 

 

 

 

 

 

 

Food & Staples Retailing

 

 

 

 

 

Wesfarmers Ltd.

 

43,996

 

1,330

 

 

 

 

 

 

 

Hotels, Restaurants & Leisure

 

 

 

 

 

Tatts Group Ltd.

 

1,031,795

 

2,208

 

 

 

 

 

 

 

Insurance

 

 

 

 

 

Suncorp Group Ltd.

 

240,761

 

1,831

 

AMP Ltd.

 

323,118

 

1,213

 

 

 

 

 

3,044

 

Media

 

 

 

 

 

Ten Network Holdings Ltd.

 

2,115,574

 

1,780

 

 

 

 

 

 

 

Metals & Mining

 

 

 

 

 

BlueScope Steel Ltd.

 

2,534,215

 

1,748

 

BHP Billiton Ltd.

 

36,416

 

1,210

 

 

 

 

 

2,958

 

Textiles, Apparel & Luxury Goods

 

 

 

 

 

Billabong International Ltd.

 

546,487

 

1,721

 

 

 

 

 

24,756

 

China (11.1%)

 

 

 

 

 

Automobiles

 

 

 

 

 

China ZhengTong Auto Services Holdings Ltd. (a)(b)

 

1,011,000

 

883

 

 

 

 

 

 

 

Beverages

 

 

 

 

 

Tsingtao Brewery Co., Ltd. H Shares (b)

 

98,000

 

533

 

 

 

 

 

 

 

Commercial Banks

 

 

 

 

 

Agricultural Bank of China Ltd. (b)

 

3,699,000

 

1,189

 

China Construction Bank Corp. H Shares (b)

 

8,165,560

 

4,872

 

China Minsheng Banking Corp., Ltd. H Shares (b)

 

1,730,500

 

1,038

 

 

 

 

 

7,099

 

Diversified Telecommunication Services

 

 

 

 

 

China Telecom Corp., Ltd. H Shares (b)

 

4,224,000

 

2,636

 

 


 

 

 

Shares

 

Value
(000)

 

Food Products

 

 

 

 

 

China Mengniu Dairy Co., Ltd. (b)

 

750,000

 

$

2,267

 

Want Want China Holdings Ltd. (b)

 

1,979,000

 

1,774

 

 

 

 

 

4,041

 

Gas Utilities

 

 

 

 

 

China Resources Gas Group Ltd. (b)

 

420,000

 

558

 

 

 

 

 

 

 

Health Care Providers & Services

 

 

 

 

 

Shanghai Pharmaceuticals Holding Co., Ltd. H Shares (a)(b)

 

895,500

 

1,936

 

 

 

 

 

 

 

Independent Power Producers & Energy Traders

 

 

 

 

 

China Resources Power Holdings Co., Ltd. (b)

 

1,469,400

 

2,218

 

 

 

 

 

 

 

Insurance

 

 

 

 

 

AIA Group Ltd. (b)

 

353,200

 

1,000

 

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

 

740,000

 

2,131

 

Ping An Insurance Group Co. H Shares (b)

 

407,000

 

2,275

 

 

 

 

 

5,406

 

Internet Software & Services

 

 

 

 

 

Netease.com ADR (a)

 

17,500

 

668

 

Sohu.com, Inc. (a)

 

28,600

 

1,378

 

Tencent Holdings Ltd. (b)

 

101,900

 

2,090

 

 

 

 

 

4,136

 

Oil, Gas & Consumable Fuels

 

 

 

 

 

Yanzhou Coal Mining Co., Ltd. H Shares (b)

 

453,000

 

948

 

 

 

 

 

 

 

Personal Products

 

 

 

 

 

Hengan International Group Co., Ltd. (b)

 

152,500

 

1,210

 

 

 

 

 

 

 

Semiconductors & Semiconductor Equipment

 

 

 

 

 

GCL Poly Energy Holdings Ltd. (b)

 

3,644,000

 

947

 

 

 

 

 

 

 

Specialty Retail

 

 

 

 

 

Belle International Holdings Ltd. (b)

 

1,511,000

 

2,578

 

 

 

 

 

 

 

Textiles, Apparel & Luxury Goods

 

 

 

 

 

Trinity Ltd. (b)

 

920,000

 

728

 

 

 

 

 

 

 

Wireless Telecommunication Services

 

 

 

 

 

China Mobile Ltd. (b)

 

251,000

 

2,448

 

 

 

 

 

38,305

 

Hong Kong (3.3%)

 

 

 

 

 

Commercial Banks

 

 

 

 

 

BOC Hong Kong Holdings Ltd.

 

406,000

 

847

 

 


 

 

 

Shares

 

Value
(000)

 

Diversified Financial Services

 

 

 

 

 

Hong Kong Exchanges and Clearing Ltd.

 

109,900

 

$

1,574

 

 

 

 

 

 

 

Gas Utilities

 

 

 

 

 

Hong Kong & China Gas Co., Ltd.

 

574,200

 

1,293

 

 

 

 

 

 

 

Household Products

 

 

 

 

 

Samsonite International SA (a)

 

435,900

 

608

 

 

 

 

 

 

 

Industrial Conglomerates

 

 

 

 

 

Hutchison Whampoa Ltd.

 

253,000

 

1,873

 

 

 

 

 

 

 

Real Estate Management & Development

 

 

 

 

 

Cheung Kong Holdings Ltd.

 

87,000

 

929

 

Hongkong Land Holdings Ltd.

 

286,000

 

1,266

 

Kerry Properties Ltd.

 

51,500

 

162

 

Wharf Holdings Ltd.

 

560,805

 

2,726

 

 

 

 

 

5,083

 

 

 

 

 

11,278

 

India (1.5%)

 

 

 

 

 

Automobiles

 

 

 

 

 

Mahindra & Mahindra Ltd.

 

69,127

 

1,128

 

 

 

 

 

 

 

Commercial Banks

 

 

 

 

 

IndusInd Bank Ltd.

 

438,350

 

2,380

 

 

 

 

 

 

 

Tobacco

 

 

 

 

 

ITC Ltd.

 

405,006

 

1,625

 

 

 

 

 

5,133

 

Indonesia (6.2%)

 

 

 

 

 

Automobiles

 

 

 

 

 

Astra International Tbk PT

 

413,000

 

2,917

 

 

 

 

 

 

 

Commercial Banks

 

 

 

 

 

Bank Central Asia Tbk PT

 

2,807,500

 

2,419

 

Bank Mandiri Tbk PT

 

4,693,500

 

3,278

 

Bank Tabungan Negara Tbk PT

 

13,430,500

 

1,800

 

 

 

 

 

7,497

 

Diversified Telecommunication Services

 

 

 

 

 

Telekomunikasi Indonesia Tbk PT

 

1,695,000

 

1,454

 

 

 

 

 

 

 

Food Products

 

 

 

 

 

Indofood Agri Resources Ltd. (a)

 

1,108,000

 

1,027

 

 


 

 

 

Shares

 

Value
(000)

 

Indofood Sukses Makmur Tbk PT

 

2,120,000

 

$

1,196

 

 

 

 

 

2,223

 

Oil, Gas & Consumable Fuels

 

 

 

 

 

Delta Dunia Makmur Tbk PT (a)

 

5,662,000

 

433

 

 

 

 

 

 

 

Pharmaceuticals

 

 

 

 

 

Kalbe Farma Tbk PT

 

4,142,000

 

1,496

 

 

 

 

 

 

 

Real Estate Management & Development

 

 

 

 

 

Bumi Serpong Damai PT

 

18,801,500

 

1,839

 

Lippo Karawaci Tbk PT

 

18,855,500

 

1,424

 

 

 

 

 

3,263

 

Wireless Telecommunication Services

 

 

 

 

 

Indosat Tbk PT

 

3,985,000

 

2,345

 

 

 

 

 

21,628

 

Japan (42.4%)

 

 

 

 

 

Airlines

 

 

 

 

 

All Nippon Airways Co., Ltd.

 

619,000

 

1,935

 

 

 

 

 

 

 

Automobiles

 

 

 

 

 

Nissan Motor Co., Ltd.

 

649,700

 

5,742

 

Suzuki Motor Corp.

 

65,800

 

1,447

 

Toyota Motor Corp.

 

206,600

 

7,062

 

Yamaha Motor Co., Ltd. (a)

 

342,800

 

4,490

 

 

 

 

 

18,741

 

Building Products

 

 

 

 

 

Asahi Glass Co., Ltd.

 

296,000

 

2,886

 

Daikin Industries Ltd.

 

107,400

 

3,072

 

 

 

 

 

5,958

 

Capital Markets

 

 

 

 

 

Nomura Holdings, Inc.

 

1,102,400

 

4,017

 

 

 

 

 

 

 

Chemicals

 

 

 

 

 

Teijin Ltd.

 

949,000

 

3,403

 

 

 

 

 

 

 

Commercial Banks

 

 

 

 

 

Sumitomo Mitsui Financial Group, Inc.

 

244,100

 

6,889

 

Sumitomo Mitsui Trust Holdings, Inc.

 

2,035,000

 

6,727

 

Tokyo Tomin Bank Ltd. (The)

 

396,800

 

5,166

 

Yachiyo Bank Ltd. (The)

 

146,200

 

4,156

 

 

 

 

 

22,938

 

 


 

 

 

Shares

 

Value
(000)

 

Construction & Engineering

 

 

 

 

 

Maeda Corp.

 

550,000

 

$

2,047

 

 

 

 

 

 

 

Consumer Finance

 

 

 

 

 

Jaccs Co., Ltd.

 

1,176,000

 

3,815

 

 

 

 

 

 

 

Diversified Financial Services

 

 

 

 

 

Fuyo General Lease Co., Ltd.

 

110,700

 

4,077

 

Japan Securities Finance Co., Ltd.

 

809,200

 

4,102

 

 

 

 

 

8,179

 

Electric Utilities

 

 

 

 

 

Chubu Electric Power Co., Inc.

 

103,300

 

1,942

 

 

 

 

 

 

 

Electrical Equipment

 

 

 

 

 

Furukawa Electric Co., Ltd.

 

989,000

 

2,688

 

 

 

 

 

 

 

Electronic Equipment, Instruments & Components

 

 

 

 

 

Hitachi Ltd.

 

674,000

 

3,352

 

 

 

 

 

 

 

Household Durables

 

 

 

 

 

Sony Corp.

 

135,900

 

2,608

 

 

 

 

 

 

 

Machinery

 

 

 

 

 

Amada Co., Ltd.

 

342,000

 

2,228

 

Asahi Diamond Industrial Co., Ltd.

 

198,300

 

2,756

 

Daifuku Co., Ltd.

 

346,000

 

1,854

 

Fuji Machine Manufacturing Co., Ltd.

 

158,600

 

2,807

 

Minebea Co., Ltd.

 

342,000

 

1,148

 

Tsubakimoto Chain Co.

 

502,000

 

2,611

 

 

 

 

 

13,404

 

Marine

 

 

 

 

 

Mitsui OSK Lines Ltd.

 

1,131,000

 

4,335

 

 

 

 

 

 

 

Media

 

 

 

 

 

Fuji Media Holdings, Inc.

 

2,907

 

4,170

 

TV Asahi Corp.

 

3,897

 

6,315

 

 

 

 

 

10,485

 

Metals & Mining

 

 

 

 

 

Mitsui Mining & Smelting Co., Ltd.

 

875,000

 

2,253

 

Nippon Steel Corp.

 

822,000

 

2,353

 

Sumitomo Metal Industries Ltd.

 

1,121,000

 

2,322

 

 

 

 

 

6,928

 

Multiline Retail

 

 

 

 

 

Takashimaya Co., Ltd.

 

147,000

 

1,069

 

 


 

 

 

Shares

 

Value
(000)

 

Office Electronics

 

 

 

 

 

Canon, Inc.

 

40,800

 

$

1,847

 

 

 

 

 

 

 

Real Estate Management & Development

 

 

 

 

 

Daibiru Corp.

 

476,100

 

3,335

 

Mitsubishi Estate Co., Ltd.

 

372,000

 

6,020

 

Mitsui Fudosan Co., Ltd.

 

332,000

 

5,255

 

 

 

 

 

14,610

 

Road & Rail

 

 

 

 

 

East Japan Railway Co.

 

33,800

 

2,052

 

 

 

 

 

 

 

Semiconductors & Semiconductor Equipment

 

 

 

 

 

Tokyo Electron Ltd.

 

75,500

 

3,420

 

 

 

 

 

 

 

Specialty Retail

 

 

 

 

 

K’s Holdings Corp.

 

181,200

 

7,088

 

 

 

 

 

146,861

 

Korea, Republic of (9.4%)

 

 

 

 

 

Aerospace & Defense

 

 

 

 

 

Korea Aerospace Industries Ltd. (a)

 

37,880

 

1,116

 

 

 

 

 

 

 

Airlines

 

 

 

 

 

Korean Air Lines Co., Ltd.

 

6,774

 

250

 

 

 

 

 

 

 

Auto Components

 

 

 

 

 

Hyundai Mobis

 

3,924

 

1,115

 

Mando Corp.

 

5,112

 

824

 

 

 

 

 

1,939

 

Automobiles

 

 

 

 

 

Hyundai Motor Co.

 

18,828

 

3,303

 

 

 

 

 

 

 

Chemicals

 

 

 

 

 

LG Chem Ltd.

 

2,767

 

733

 

SSCP Co., Ltd.

 

53,296

 

170

 

 

 

 

 

903

 

Commercial Banks

 

 

 

 

 

KB Financial Group, Inc.

 

56,231

 

1,836

 

Shinhan Financial Group Co., Ltd.

 

43,566

 

1,524

 

 

 

 

 

3,360

 

Construction & Engineering

 

 

 

 

 

Hyundai Engineering & Construction Co., Ltd.

 

24,463

 

1,242

 

 


 

 

 

Shares

 

Value
(000)

 

Distributors

 

 

 

 

 

Himart Co., Ltd. (a)

 

12,600

 

$

897

 

 

 

 

 

 

 

Food & Staples Retailing

 

 

 

 

 

E-Mart Co., Ltd. (a)

 

383

 

96

 

 

 

 

 

 

 

Household Durables

 

 

 

 

 

Woongjin Coway Co., Ltd.

 

50,800

 

1,607

 

 

 

 

 

 

 

Information Technology Services

 

 

 

 

 

SK C&C Co., Ltd.

 

20,741

 

2,519

 

 

 

 

 

 

 

Insurance

 

 

 

 

 

Samsung Fire & Marine Insurance Co., Ltd.

 

2,490

 

445

 

 

 

 

 

 

 

Internet Software & Services

 

 

 

 

 

NHN Corp. (a)

 

1,981

 

373

 

 

 

 

 

 

 

Machinery

 

 

 

 

 

Doosan Infracore Co., Ltd. (a)

 

29,420

 

442

 

Hyundai Heavy Industries Co., Ltd.

 

3,055

 

708

 

 

 

 

 

1,150

 

Media

 

 

 

 

 

Cheil Worldwide, Inc.

 

65,850

 

1,033

 

 

 

 

 

 

 

Metals & Mining

 

 

 

 

 

Hyundai Steel Co.

 

3,205

 

234

 

POSCO

 

1,806

 

555

 

 

 

 

 

789

 

Multiline Retail

 

 

 

 

 

Shinsegae Co., Ltd.

 

171

 

39

 

 

 

 

 

 

 

Oil, Gas & Consumable Fuels

 

 

 

 

 

GS Holdings

 

15,083

 

719

 

 

 

 

 

 

 

Personal Products

 

 

 

 

 

Amorepacific Corp.

 

16

 

16

 

 

 

 

 

 

 

Semiconductors & Semiconductor Equipment

 

 

 

 

 

Hynix Semiconductor, Inc.

 

74,940

 

1,318

 

Samsung Electronics Co., Ltd.

 

8,904

 

6,238

 

Samsung Electronics Co., Ltd. (Preference)

 

2,546

 

1,216

 

 

 

 

 

8,772

 

Software

 

 

 

 

 

NCSoft Corp.

 

3,548

 

1,003

 

 


 

 

 

Shares

 

Value
(000)

 

Tobacco

 

 

 

 

 

KT&G Corp.

 

14,758

 

$

921

 

 

 

 

 

32,492

 

Malaysia (1.2%)

 

 

 

 

 

Commercial Banks

 

 

 

 

 

CIMB Group Holdings Bhd

 

946,700

 

2,053

 

 

 

 

 

 

 

Diversified Financial Services

 

 

 

 

 

AMMB Holdings Bhd

 

784,800

 

1,398

 

 

 

 

 

 

 

Health Care Equipment & Supplies

 

 

 

 

 

Top Glove Corp. Bhd

 

622,500

 

795

 

 

 

 

 

4,246

 

Philippines (2.4%)

 

 

 

 

 

Airlines

 

 

 

 

 

Cebu Air, Inc.

 

504,530

 

817

 

 

 

 

 

 

 

Commercial Banks

 

 

 

 

 

Metropolitan Bank & Trust

 

1,945,680

 

2,906

 

 

 

 

 

 

 

Diversified Financial Services

 

 

 

 

 

Ayala Corp.

 

254,026

 

1,674

 

Metro Pacific Investments Corp.

 

37,269,000

 

2,309

 

 

 

 

 

3,983

 

Multiline Retail

 

 

 

 

 

Puregold Price Club, Inc. (a)

 

2,012,800

 

582

 

 

 

 

 

8,288

 

Singapore (1.4%)

 

 

 

 

 

Airlines

 

 

 

 

 

Singapore Airlines Ltd.

 

155,000

 

1,341

 

 

 

 

 

 

 

Commercial Banks

 

 

 

 

 

DBS Group Holdings Ltd.

 

132,000

 

1,183

 

 

 

 

 

 

 

Food & Staples Retailing

 

 

 

 

 

Olam International Ltd.

 

741,318

 

1,264

 

 

 

 

 

 

 

Industrial Conglomerates

 

 

 

 

 

Keppel Corp., Ltd.

 

91,100

 

534

 

 

 

 

 

 

 

Real Estate Management & Development

 

 

 

 

 

CapitaLand Ltd.

 

241,000

 

449

 

 

 

 

 

4,771

 

 


 

 

 

Shares

 

Value
(000)

 

Taiwan (5.7%)

 

 

 

 

 

Capital Markets

 

 

 

 

 

Yuanta Financial Holding Co., Ltd. (a)

 

994,564

 

$

498

 

 

 

 

 

 

 

Chemicals

 

 

 

 

 

Formosa Plastics Corp.

 

275,000

 

727

 

Taiwan Fertilizer Co., Ltd.

 

100,000

 

242

 

 

 

 

 

969

 

Communications Equipment

 

 

 

 

 

HTC Corp.

 

134,851

 

2,963

 

 

 

 

 

 

 

Computers & Peripherals

 

 

 

 

 

Asustek Computer, Inc.

 

211,280

 

1,578

 

Catcher Technology Co., Ltd.

 

251,000

 

1,440

 

 

 

 

 

3,018

 

Construction Materials

 

 

 

 

 

Taiwan Cement Corp.

 

970,000

 

1,028

 

 

 

 

 

 

 

Diversified Financial Services

 

 

 

 

 

Fubon Financial Holding Co., Ltd.

 

1,233,625

 

1,277

 

 

 

 

 

 

 

Diversified Telecommunication Services

 

 

 

 

 

Chunghwa Telecom Co. Ltd.

 

203,000

 

675

 

 

 

 

 

 

 

Electronic Equipment, Instruments & Components

 

 

 

 

 

Hon Hai Precision Industry Co., Ltd.

 

1,037,419

 

2,316

 

TPK Holding Co., Ltd. (a)

 

37,550

 

696

 

 

 

 

 

3,012

 

Food Products

 

 

 

 

 

Uni-President Enterprises Corp.

 

2,890,906

 

3,722

 

 

 

 

 

 

 

Metals & Mining

 

 

 

 

 

China Steel Corp.

 

36,369

 

35

 

 

 

 

 

 

 

Semiconductors & Semiconductor Equipment

 

 

 

 

 

Taiwan Semiconductor Manufacturing Co., Ltd.

 

1,159,592

 

2,627

 

 

 

 

 

19,824

 

Thailand (0.3%)

 

 

 

 

 

Oil, Gas & Consumable Fuels

 

 

 

 

 

Banpu PCL

 

55,350

 

934

 

 


 

 

 

Shares

 

Value
(000)

 

United States (0.2%)

 

 

 

 

 

Distributors

 

 

 

 

 

Li & Fung Ltd. (b)

 

398,000

 

$

653

 

Total Common Stocks (Cost $346,608)

 

 

 

319,169

 

 

 

 

 

 

 

Investment Company (1.6%)

 

 

 

 

 

India (1.6%)

 

 

 

 

 

Diversified Financial Services

 

 

 

 

 

Morgan Stanley Growth Fund (a)(c) (Cost $934)

 

5,193,324

 

5,664

 

 

 

 

 

 

 

Participation Notes (0.6%)

 

 

 

 

 

China (0.6%)

 

 

 

 

 

Software

 

 

 

 

 

UBS AG, UFIDA Software Co., Ltd., Class A, Equity Linked Notes, Zero Coupon, 9/30/13 (Cost $2,170)

 

57,777

 

1,993

 

 

 

 

 

 

 

Short-Term Investment (5.9%)

 

 

 

 

 

Investment Company (5.9%)

 

 

 

 

 

Morgan Stanley Institutional Liquidity Funds - Money Market Portfolio - Institutional Class (c) (Cost $20,505)

 

20,505,473

 

20,505

 

Total Investments (100.3%) (Cost $370,217) (d)+

 

 

 

347,331

 

Liabilities in Excess of Other Assets (-0.3%)

 

 

 

(1,094

)

Net Assets (100.0%)

 

 

 

$

346,237

 

 

(a)

 

Non-income producing security.

(b)

 

Security trades on the Hong Kong exchange.

(c)

 

The Fund invests in the Morgan Stanley Growth Fund, an open-end management investment company advised by an affiliate of the Investment Adviser. Investment advisory fees paid by the Fund are reduced by an amount equal to the advisory and administrative service fees paid by the Morgan Stanley Growth Fund with respect to assets invested by the Fund in the Morgan Stanley Growth Fund. The Fund invests in the Morgan Stanley Institutional Liquidity Funds - Money Market Portfolio - Institutional Class (the “Liquidity Funds”), an open-end management investment company managed by the Investment Adviser. Investment advisory fees paid by the Fund are reduced by an amount equal to the advisory and administrative service fees paid by the Liquidity Funds with respect to assets invested by the Fund in the Liquidity Funds.

(d)

 

The approximate market value and percentage of net assets, $318,534,000 and 92.0%, respectively, represent the securities that have been fair valued under the fair valuation policy for international investments as described in the Notes to the Portfolio of Investments.

+

 

At September 30, 2011, the U.S. Federal income tax cost basis of investments was approximately $370,217,000 and, accordingly, net unrealized depreciation for U.S. Federal income tax purposes was approximately $22,886,000 of which approximately $26,767,000 related to appreciated securities and approximately $49,653,000 related to depreciated securities.

ADR

 

American Depositary Receipt.

 


 

Fair Value Measurement Information:

 

The following is a summary of the inputs used to value the Fund’s net assets as of September 30, 2011. (See Notes to the Portfolio of Investments for further information regarding fair value measurement.)

 

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

 

$

—

 

$

1,116

 

$

—

 

$

1,116

 

Airlines

 

—

 

8,349

 

—

 

8,349

 

Auto Components

 

—

 

1,939

 

—

 

1,939

 

Automobiles

 

—

 

26,972

 

—

 

26,972

 

Beverages

 

—

 

533

 

—

 

533

 

Building Products

 

—

 

5,958

 

—

 

5,958

 

Capital Markets

 

—

 

4,515

 

—

 

4,515

 

Chemicals

 

—

 

5,275

 

—

 

5,275

 

Commercial Banks

 

—

 

56,545

 

—

 

56,545

 

Communications Equipment

 

—

 

2,963

 

—

 

2,963

 

Computers & Peripherals

 

—

 

3,018

 

—

 

3,018

 

Construction & Engineering

 

—

 

3,289

 

—

 

3,289

 

Construction Materials

 

—

 

1,028

 

—

 

1,028

 

Consumer Finance

 

—

 

3,815

 

—

 

3,815

 

Distributors

 

—

 

1,550

 

—

 

1,550

 

Diversified Financial Services

 

—

 

16,411

 

—

 

16,411

 

Diversified Telecommunication Services

 

—

 

4,765

 

—

 

4,765

 

Electric Utilities

 

—

 

1,942

 

—

 

1,942

 

Electrical Equipment

 

—

 

2,688

 

—

 

2,688

 

Electronic Equipment, Instruments & Components

 

—

 

6,364

 

—

 

6,364

 

Energy Equipment & Services

 

—

 

1,427

 

—

 

1,427

 

Food & Staples Retailing

 

—

 

2,690

 

—

 

2,690

 

Food Products

 

—

 

9,986

 

—

 

9,986

 

Gas Utilities

 

—

 

1,851

 

—

 

1,851

 

Health Care Equipment & Supplies

 

—

 

795

 

—

 

795

 

Health Care Providers & Services

 

—

 

1,936

 

—

 

1,936

 

Hotels, Restaurants & Leisure

 

—

 

2,208

 

—

 

2,208

 

Household Durables

 

—

 

4,215

 

—

 

4,215

 

Household Products

 

—

 

608

 

—

 

608

 

Independent Power Producers & Energy Traders

 

—

 

2,218

 

—

 

2,218

 

Industrial Conglomerates

 

—

 

2,407

 

—

 

2,407

 

Information Technology Services

 

—

 

2,519

 

—

 

2,519

 

Insurance

 

—

 

8,895

 

—

 

8,895

 

Internet Software & Services

 

2,046

 

2,463

 

—

 

4,509

 

Machinery

 

—

 

14,554

 

—

 

14,554

 

Marine

 

—

 

4,335

 

—

 

4,335

 

Media

 

—

 

13,298

 

—

 

13,298

 

Metals & Mining

 

—

 

10,710

 

—

 

10,710

 

Multiline Retail

 

582

 

1,108

 

—

 

1,690

 

Office Electronics

 

—

 

1,847

 

—

 

1,847

 

Oil, Gas & Consumable Fuels

 

—

 

3,034

 

—

 

3,034

 

Personal Products

 

—

 

1,226

 

—

 

1,226

 

Pharmaceuticals

 

—

 

1,496

 

—

 

1,496

 

Real Estate Management & Development

 

—

 

23,405

 

—

 

23,405

 

Road & Rail

 

—

 

2,052

 

—

 

2,052

 

Semiconductors & Semiconductor Equipment

 

—

 

15,766

 

—

 

15,766

 

Software

 

—

 

1,003

 

—

 

1,003

 

Specialty Retail

 

—

 

9,666

 

—

 

9,666

 

Textiles, Apparel & Luxury Goods

 

—

 

2,449

 

—

 

2,449

 

Tobacco

 

—

 

2,546

 

—

 

2,546

 

Wireless Telecommunication Services

 

—

 

4,793

 

—

 

4,793

 

Total Common Stocks

 

2,628

 

316,541

 

—

 

319,169

 

Investment Company

 

5,664

 

—

 

—

 

5,664

 

Participation Notes

 

—

 

1,993

 

—

 

1,993

 

Short-Term Investment - Investment Company

 

20,505

 

—

 

—

 

20,505

 

Total Assets

 

$

28,797

 

$

318,534

 

$

—

 

$

347,331

 

 


 

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 September 30, 2011, securities with a total value of approximately $234,028,000 transferred from Level 1 to Level 2. At September 30, 2011, the fair market value of certain securities were adjusted due to developments which occurred between the time of the close of the foreign markets on which they trade and the close of business on the NYSE which resulted in their Level 2 classification.

 


 

Morgan Stanley Asia-Pacific Fund, Inc.

Notes to the Portfolio of Investments · September 30, 2011 (unaudited)

 

Security Valuation: Securities listed on a foreign exchange are valued at their closing price except as noted below. Unlisted securities and listed securities not traded on the valuation date for which market quotations are readily available are valued at the mean between the current bid and ask prices. Equity securities listed on a U.S. exchange are valued at the latest quoted sales price on the valuation date. Equity securities listed or traded on NASDAQ, for which market quotations are available, are valued at the NASDAQ Official Closing Price. Short-term debt securities purchased with remaining maturities of 60 days or less are valued at amortized cost, unless the Board of Directors (the “Directors”) determines such valuation does not reflect the securities’ market value, in which case these securities will be valued at their fair value as determined in good faith under procedures adopted by the Directors.

 

All other securities and investments for which market values are not readily available, including restricted securities, and those securities for which it is inappropriate to determine prices in accordance with the aforementioned procedures, are valued at fair value as determined in good faith under procedures adopted by the Directors, although the actual calculations may be done by others. 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.

 

Most foreign markets close before the New York Stock Exchange (“NYSE”). Occasionally, developments that could affect 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 on the NYSE. If these developments are expected to materially affect the value of the securities, the valuations may be adjusted to reflect the estimated fair value as of the close of the NYSE, as determined in good faith under procedures established by the Directors.

 

Fair Value Measurement: Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) 820, Fair Value Measurements and Disclosure (“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.

 


 

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/ Arthur Lev

 

Arthur Lev

Principal Executive Officer

November 17, 2011

 

 

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/ Arthur Lev

 

Arthur Lev

 

Principal Executive Officer

 

November 17, 2011

 

 

 

/s/ Francis Smith

 

Francis Smith

 

Principal Financial Officer

 

November 17, 2011