UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM N-CSR
CERTIFIED SHAREHOLDER REPORT OF REGISTERED
MANAGEMENT INVESTMENT COMPANIES
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Investment Company Act file number |
811-08076 | |||||||
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Aberdeen Emerging Markets Smaller Company Opportunities Fund, Inc. | ||||||||
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(Exact name of registrant as specified in charter) | ||||||||
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1735 Market Street, 32nd Floor Philadelphia, PA |
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19103 | ||||||
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(Address of principal executive offices) |
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(Zip code) | ||||||
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Ms. Andrea Melia Aberdeen Asset Management Inc. 1735 Market Street, 32nd Floor Philadelphia, PA 19103 | ||||||||
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(Name and address of agent for service) | ||||||||
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Registrant’s telephone number, including area code: |
1-800-522-5465 |
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Date of fiscal year end: |
October 31 |
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Date of reporting period: |
April 30, 2017 |
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Item 1. Reports to Stockholders.
Aberdeen’s Investor Relations Services
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Letter to Shareholders (unaudited)
Dear Shareholder,
We present this Semi-Annual Report, which covers the activities of Aberdeen Emerging Markets Smaller Company Opportunities Fund, Inc. (the “Fund”), for the six-month period ended April 30, 2017. The Fund’s principal investment objective is to seek long-term capital appreciation. The Fund seeks to achieve this investment objective by investing primarily in equity securities of emerging market smaller company issuers.
NAV Total Return Performance
For the six-month period ended April 30, 2017, the total return to shareholders of the Fund based on the net asset value (“NAV”), net of fees, of the Fund was 4.4%, assuming reinvestment of dividends and distributions, versus a return of 8.9% for the Fund’s benchmark, the Morgan Stanley Capital International (“MSCI”) Emerging Markets Small Cap Index.1 The Fund’s total return for the six-month period ended April 30, 2017 and per annum since inception total return is based on the reported NAV at the financial reporting period end.
Share Price Total Return Performance & Discount
For the six-month period ended April 30, 2017, based on market price, the Fund’s total return was 10.5%, assuming reinvestment of dividends and distributions. The Fund’s share price increased 10.5% over the six-month period, from $12.33 on October 31, 2016 to $13.63 on April 30, 2017. The Fund’s share price on April 30, 2017 represented a discount of 9.5% to the NAV per share of $15.06 on that date, compared with a discount of 14.6% to the NAV per share of $14.43 on October 31, 2016.
Open Market Repurchase Program
The Fund’s policy is to consider buying back Fund shares on the open market when the Fund trades at certain discounts to the NAV and management believes such repurchases may enhance shareholder value. During the six-month period ended April 30, 2017, the Fund repurchased 159,122 shares. During the fiscal year ended October 31, 2016, the Fund repurchased 90,827 shares.
Merger of Aberdeen Asset Management PLC with Standard Life plc
The Fund’s investment adviser and administrator are each a subsidiary of Aberdeen Asset Management PLC (“Aberdeen PLC”). On March 6, 2017, the Boards of Standard Life plc and Aberdeen PLC announced that they had reached an agreement on the terms of a merger (“Merger”). The Boards of each of Standard Life plc and Aberdeen PLC believe that the Merger has a compelling strategic and financial rationale through combining complementary strengths to create a
world-class investment group. The Merger is expected to occur in the third quarter of 2017, subject to various conditions and terms, including regulatory approvals. The portfolio management team for the Fund is not expected to change as a result of the Merger. In addition, the agreements that the Fund has with Aberdeen PLC’s subsidiary companies, the services provided by such companies, and the fees charged for those services are not expected to change as a result of the Merger.
Portfolio Holdings Disclosure
The Fund’s complete schedule of portfolio holdings for the second and fourth quarters of each fiscal year are included in the Fund’s semi-annual and annual reports to shareholders. The Fund files its complete schedule of portfolio holdings with the Securities and Exchange Commission (“SEC”) for the first and third quarters of each fiscal year on Form N-Q. The Fund’s Form N-Q filings are available on the SEC’s website at http://www.sec.gov and may be reviewed and copied at the SEC’s Public Reference Room in Washington, D.C. Information about the operation of the Public Reference Room may be obtained by calling 1-800-SEC-0330. The Fund makes the information on Form N-Q available to shareholders on the Fund’s website or upon request and without charge by calling Investor Relations toll-free at 1-800-522-5465.
Proxy Voting
A description of the policies and procedures that the Fund uses to determine how to vote proxies relating to portfolio securities, and information regarding how the Fund voted proxies relating to portfolio securities during the most recent twelve months ended June 30 is available by August 31 of the relevant year: (i) upon request and without charge by calling Investor Relations toll-free at 1-800-522-5465; and (ii) on the SEC’s website at http://www.sec.gov.
Unclaimed Share Accounts
Please be advised that abandoned or unclaimed property laws for certain states require financial organizations to transfer (escheat) unclaimed property (including Fund shares) to the state. Each state has its own definition of unclaimed property, and Fund shares could be considered “unclaimed property” due to account inactivity (e.g., no owner-generated activity for a certain period), returned mail (e.g., when mail sent to a shareholder is returned to the Fund’s transfer agent as undeliverable), or a combination of both. If your Fund shares are categorized as unclaimed, your financial advisor or the Fund’s transfer agent will follow the applicable state’s statutory requirements to contact you, but if unsuccessful, laws may require that the shares
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1 |
The MSCI Emerging Markets Small Cap Index is a free float-adjusted market capitalization index that is designed to measure the equity market performance of the small-cap segment of global emerging markets. As of April 30, 2017, the MSCI Emerging Markets Small Cap Index consists of the following 23 emerging market country indexes: Brazil, Chile, China, Colombia, Czech Republic, Egypt, Greece, Hungary, India, Indonesia, Korea, Malaysia, Mexico, Peru, Philippines, Poland, Qatar, Russia, South Africa, Taiwan, Thailand, Turkey and United Arab Emirates. No fees or expenses are reflected. You cannot invest directly in an index. |
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Aberdeen Emerging Markets Smaller Company Opportunities Fund, Inc. |
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Letter to Shareholders (unaudited) (concluded)
be escheated to the appropriate state. If this happens, you will have to contact the state to recover your property, which may involve time and expense. For more information on unclaimed property and how to maintain an active account, please contact your financial adviser or the Fund’s transfer agent.
Investor Relations Information
As part of Aberdeen’s commitment to shareholders, we invite you to visit the Fund on the web at www.aberdeenabe.com. Here, you can view monthly fact sheets, quarterly commentary, distribution and performance information, updated daily fact sheets courtesy of Morningstar®, portfolio charting and other Fund literature.
Enroll in our email services and be among the first to receive the latest closed-end fund news, announcements, videos and information. In addition, you can receive electronic versions of important Fund documents including annual reports, semi-annual reports, prospectuses, and proxy statements. Sign up today at www.aberdeen-asset.us/aam.nsf/usclosed/email.
Contact Us:
· Visit: cef.aberdeen-asset.us;
· Watch: www.aberdeen-asset.us/aam.nsf/usclosed/ aberdeentv;
· Email: InvestorRelations@aberdeen-asset.com; or
· Call: 1-800-522-5465 (toll free in the U.S.).
Yours sincerely,
/s/ Christian Pittard
Christian Pittard
President
Dividend Reinvestment and Direct Stock Purchase Plan (unaudited)
Computershare Trust Company, N.A. (“Computershare”), the Fund’s transfer agent, sponsors and administers a Dividend Reinvestment and Direct Stock Purchase Plan (the “Plan”), which is available to shareholders.
The Plan allows registered stockholders and first-time investors to buy and sell shares and automatically reinvest dividends and capital gains through the transfer agent. This is a cost-effective way to invest in the Fund.
Please note that for both purchase and reinvestment purposes, shares will be purchased in the open market at the current share price and cannot be issued directly by the Fund.
For more information about the Plan and a brochure that includes the terms and conditions of the Plan, please call Computershare at 1-800-647-0584 or visit www.computershare.com/buyaberdeen.
All amounts are U.S. Dollars unless otherwise stated.
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Aberdeen Emerging Markets Smaller Company Opportunities Fund, Inc. |
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Report of the Investment Adviser (unaudited)
Market/economic review
Shares of smaller companies in emerging stock markets, as measured by the Morgan Stanley Capital International (MSCI) Emerging Markets Small Cap Index, gained 8.88% during the six-month period ended April 30, 2017, slightly underperforming their larger-capitalization counterparts, as represented by the MSCI Emerging Markets Index, which returned 9.03%. Investor sentiment initially weakened after Donald Trump’s unexpected victory in the U.S. presidential election in November 2016, which strengthened the U.S. dollar and triggered a market rotation out of bonds and bond proxies into low-quality cyclicals as investors considered the implications of a more reflationary U.S. fiscal policy. Markets subsequently rallied as generally positive corporate earnings reports and signs of a continued pick-up in global growth buoyed sentiment, despite heightened geopolitical risks in North Korea. Most global currencies strengthened relative to the weaker U.S. dollar late in the reporting period after the Republican majority in the U.S. House of Representatives failed to reach agreement on a new healthcare bill. The legislation was subsequently revised and approved by a narrow margin in the House in early May 2017. The bill then went to the U.S. Senate, which most likely will make substantial changes to the plan. Oil prices eased, with Brent crude falling below the US$50 per barrel level towards the end of the reporting period.
Across the emerging markets, India’s ruling Bharatiya Janata Party scored a resounding state election victory in Uttar Pradesh in March 2017, boosting investor confidence in Prime Minister Narendra Modi’s ability to carry through with his reform agenda. This outweighed the receding impact of the Indian government’s surprising demonetization* in November 2016. In the Europe, Middle East and Africa (EMEA) region, Russia was buoyed by stabilizing energy prices and a return to economic growth for the first time in two years. Poland benefited from spillover optimism in Europe, where the rising nationalist tide appeared to recede, as independent Emmanuel Macron won the French presidential election in early May 2017, with more than 65% of the vote, defeating his far-right rival Marine Le Pen in the head-to-head runoff election. In contrast, the Turkish lira continued to sell off over the reporting period on political uncertainty and a credit-rating downgrade. Elsewhere, there was weakness in the Latin American market over the period. Brazilian equities seesawed on anxiety over whether President Michel Temer’s proposed pension reforms would garner Parliamentary approval, while the central bank continued to cut interest rates. Conversely, Mexico’s central bank raised rates for a fifth consecutive time in March 2017, in an effort to combat inflation.
Fund performance review
The Fund underperformed relative to its benchmark, the MSCI Emerging Markets Small Cap Index, on a net asset value basis over the six-month period ended April 30, 2017. Higher-quality small-cap consumer staples and other defensively positioned companies generally underperformed the overall market during the six-month period ended April 30, 2017, while cyclical stocks enjoyed increased momentum on expectations of reflationary policies in the U.S. and continued stimulus in China. This weighed on Fund performance in several markets over the period, including India, Brazil, Poland, the Philippines and Indonesia, with shares of long-term core Fund holdings such as Mexican airport operator Grupo Aeroportuario del Centro Norte (OMA), Philippine fast-food restaurant chain operator Jollibee Foods, and Indonesian energy services provider AKR Corporindo declining. Elsewhere, the Fund’s underweight to Taiwan relative to its benchmark hampered performance as that market performed well over the reporting period, supported by the country’s stabilizing currency. The overweight allocation to Turkey detracted from Fund performance due mainly to the weakening Turkish lira.
At the stock level, the Fund’s holding in Grana y Montero had a negative impact on performance as the Peruvian industrial company’s shares fell sharply after it became embroiled in a corruption scandal involving former project partner, Odebrecht, over construction contracts undertaken in Peru. Grana y Montero strenuously denied the allegations and launched an independently led internal investigation. The company has also moved to refresh its board, appointing a number of additional and highly regarded outside directors. The Fund’s position in Poland-based foods distributor Eurocash weighed on performance due to continued profit margin pressure and weakness in the company’s cash & carry segment. Finally, shares of the Fund’s holding Coca-Cola Icecek, a Turkish soft-drink bottler, were hampered by the decline in the Turkish lira over the reporting period, as the company’s balance sheet is largely U.S. dollar-funded.
Conversely, the Fund’s underweight exposure to Korea benefited the Fund’s relative performance for the reporting period as the market lost ground due to political instability in that country, as well as the continued weakness in shares of companies in the biotechnology industry, which was a key driver of the strong performance of the Korean small-cap market in 2016. At the stock level, the holding in Chinese industrial gas company Yingde Gases Group Co. was one of the key contributors to Fund performance for the reporting period, as it was the target of a takeover battle. We tendered the Fund’s shares in Yingde Gases to private equity firm PAG Capital at HK$6.00 (about
* Demonetization comprises the act of stripping specific denominations of a currency unit of their status as legal tender. The currency denominations are pulled from circulation and are replaced with new currency units.
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Aberdeen Emerging Markets Smaller Company Opportunities Fund, Inc. |
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Report of the Investment Adviser (unaudited) (concluded)
US$0.77) per share after U.S.-based Air Products and Chemicals withdrew its offer to acquire the company.
Regarding portfolio activity over the reporting period, we initiated a position in Medy-Tox, a Korean maker of botulinum toxin, as we believed that its valuation had become more reasonable following broader weakness in the Korean healthcare sector. The company has a 40% share of the domestic market and is one of eight manufacturers of botulinum toxin globally. We also initiated a position in Taiwanese retail chain Poya, which is taking market share from smaller rivals with its large stores and diverse products. We also established a new position in Turkish software developer Logo, which we believe is a high-quality Turkish software developer with an attractive valuation. Furthermore, we participated in Pilipinas Shell Petroleum Corp.’s initial public offering. Conversely, we sold Yingde Gases, as previously noted, as well as Hong Kong exchange-listed Dah Sing Banking Group, Russian supermarket chain operator O’Key Group, and Hong Kong-based apparel retailer Texwinca Holdings to fund what we believe are better opportunities elsewhere.
Outlook
Emerging-market equities outperformed their developed-market peers for the first four months of 2017, and we maintain our positive outlook for the remainder of the calendar year. Corporate profits continue to improve amid the ongoing recovery in economic growth in emerging markets. Equity valuations in emerging markets remain at a significant discount to those of developed markets. While uncertainty persists in the external environment, including the possibility of more U.S. interest-rate hikes that would strengthen the U.S. dollar as well as protectionist leanings in the West, we think that most developing economies are in much better shape now compared to previous periods of crises. In our view, government policymakers are also increasingly aware that addressing structural deficiencies, such as overcapacity and excess leverage, are the key to sustainable and higher-quality growth over the long term. We believe that prospects in emerging markets are also underpinned by the vast potential of an asset class that has favorable demographics and a growing middle class with a greater propensity to spend.
Aberdeen Asset Managers Limited
Total Investment Return (unaudited)
The following table summarizes the six-month and average annual Fund total investment return compared to the MSCI Emerging Markets (“EM”) Small Cap Index, the Fund’s benchmark, for the 6-month, 1-year, 3-year, 5-year and 10-year periods as of April 30, 2017.(1)
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6 Months |
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1 Year |
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3 Years |
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5 Years |
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10 Years |
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Net Asset Value (NAV) |
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4.4% |
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9.0% |
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0.6% |
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1.1% |
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1.8% |
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Market Value |
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10.5% |
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14.3% |
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1.3% |
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1.6% |
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1.0% |
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MSCI EM Small Cap Index |
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8.9% |
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14.4% |
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2.2% |
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3.8% |
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n/a%(2) |
Aberdeen Asset Managers Limited, the Fund’s investment adviser, has entered into a written contract with the Fund to waive certain fees without which total return performance would be lower. See Note 3 in the Notes to Financial Statements. This contract aligns with the term of the advisory agreement and may not be terminated prior to the end of the current term of the advisory agreement. Returns represent past performance. Total investment return at NAV is based on changes in the NAV of Fund shares and assumes reinvestment of dividends and distributions, if any, at market prices pursuant to the dividend reinvestment program sponsored by the Fund’s transfer agent. All return data at NAV includes fees charged to the Fund, which are listed in the Fund’s Statement of Operations under “Expenses.” Total investment return at market value is based on changes in the market price at which the Fund’s shares traded on the NYSE MKT during the period and assumes reinvestment of dividends and distributions, if any, at market prices pursuant to the dividend reinvestment program sponsored by the Fund’s transfer agent. The Fund’s total investment return is based on the reported NAV on the financial reporting period ended April 30, 2017. Because the Fund’s shares trade in the stock market based on investor demand, the Fund may trade at a price higher or lower than its NAV. Therefore, returns are calculated based on both market price and NAV. Past performance is no guarantee of future results. The performance information provided does not reflect the deduction of taxes that a shareholder would pay on distributions received from the Fund. The current performance of the Fund may be lower or higher than the figures shown. The Fund’s yield, return, market price and NAV will fluctuate. Performance information current to the most recent month-end is available at www.aberdeenabe.com or by calling 800-522-5465.
The annualized total expense ratio, excluding fee waivers, based on the six-month period ended April 30, 2017 was 1.57%. The annualized total expense ratio, net of fee waivers, based on the six-month period ended April 30, 2017 was 1.53%.
(1) Effective March 15, 2013, the Fund’s investment strategy changed from an infrastructure focus to a global emerging markets smaller company issuer focus. In connection with the strategy change, the Fund’s benchmark changed from the MSCI Emerging Markets Infrastructure Index to the MSCI EM Small Cap Index. The Fund’s performance information for periods that include performance prior to March 15, 2013, such as three-, five- and ten-year performance information, includes periods when the Fund was managed with an infrastructure focus. In light of this, a comparison of that performance to the MSCI EM Small Cap Index may not provide useful information to investors evaluating long-term Fund performance.
(2) There is no 10-year figure for the MSCI EM Small Cap Index because its inception date is June 1, 2007.
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Aberdeen Emerging Markets Smaller Company Opportunities Fund, Inc. |
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Portfolio Summary (unaudited)
The following table summarizes the sector composition of the Fund’s portfolio by geographic classification expressed as a percentage of net assets as of April 30, 2017.
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Region
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As a Percentage of Net Assets |
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Asia |
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53.9% |
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Latin America |
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14.3% |
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Europe |
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12.5% |
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Africa |
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8.8% |
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North America |
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5.6% |
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Middle East |
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3.0% |
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Global |
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0.7% |
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Short-Term Investment |
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0.8% |
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Other Assets in Excess of Liabilities |
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0.4% |
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100.0%
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The following table summarizes the composition of the Fund’s portfolio, in Standard & Poor’s Global Industry Classification Standard (“GICS”) Sectors, expressed as a percentage of net assets. The GICS structure consists of 11 sectors, 24 industry groups, 68 industries and 157 subindustries. As of April 30, 2017, the Fund did not have more than 25% of its assets invested in any industry. The sectors, as classified by GICS, are comprised of several industries.
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Top Sectors
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As a Percentage of Net Assets |
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Consumer Staples |
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18.5% |
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Industrials |
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18.2% |
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Consumer Discretionary |
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13.6% |
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Materials |
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10.6% |
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Information Technology |
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10.4% |
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Real Estate |
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9.9% |
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Health Care |
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8.2% |
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Financials |
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6.7% |
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Energy |
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1.6% |
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Private Equity |
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1.1% |
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Short-Term Investment |
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0.8% |
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Other Assets in Excess of Liabilities |
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0.4% |
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100.0%
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Top Ten Equity Holdings (unaudited)
The following were the Fund’s top ten holdings as of April 30, 2017:
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Name of Security
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As a Percentage of Net Assets |
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Godrej Consumer Products Ltd. |
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3.8% |
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Parque Arauco SA |
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3.3% |
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AKR Corporindo Tbk PT |
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3.2% |
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Ramco Cements Ltd. (The) |
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3.1% |
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Grupo Aeroportuario del Centro Norte SAB de CV, ADR |
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3.1% |
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Piramal Enterprises Ltd. |
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2.8% |
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EPAM Systems, Inc. |
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2.5% |
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Iguatemi Empresa de Shopping Centers SA |
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2.5% |
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Container Corp. of India Ltd. |
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2.4% |
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Delfi Ltd. |
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2.4% |
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Aberdeen Emerging Markets Smaller Company Opportunities Fund, Inc. |
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Portfolio of Investments (unaudited)
As of April 30, 2017
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Shares |
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Description |
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Industry and Percentage |
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Value |
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LONG-TERM EQUITY SECURITIES IN EMERGING MARKET COUNTRIES—96.3% |
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COMMON STOCKS—95.1% |
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BRAZIL—9.8% |
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198,961 |
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Arezzo Industria e Comercio SA |
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Textiles, Apparel & Luxury Goods—1.5% |
|
$ |
2,112,439 |
|
|
336,155 |
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Iguatemi Empresa de Shopping Centers SA |
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Real Estate Management & Development—2.5% |
|
3,512,944 |
| |
|
116,450 |
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Localiza Rent a Car SA |
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Road & Rail—1.2% |
|
1,735,349 |
| |
|
410,595 |
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Odontoprev SA |
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Health Care Providers & Services—1.0% |
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1,481,172 |
| |
|
193,845 |
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TOTVS SA |
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Software—1.2% |
|
1,697,797 |
| |
|
96,852 |
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Valid Solucoes e Servicos de Seguranca em Meios de Pagamento e Identificacao SA |
|
Commercial Services & Supplies—0.5% |
|
685,032 |
| |
|
236,000 |
|
Wilson Sons Ltd., BDR |
|
Transportation Infrastructure—1.9% |
|
2,777,083 |
| |
|
|
|
|
|
|
|
14,001,816 |
| |
|
CHILE—4.0% |
|
|
|
|
| |||
|
1,791,700 |
|
Parque Arauco SA |
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Real Estate Management & Development—3.3% |
|
4,674,117 |
| |
|
626,000 |
|
Sonda SA |
|
Information Technology Services—0.7% |
|
1,067,400 |
| |
|
|
|
|
|
|
|
5,741,517 |
| |
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CHINA—3.8% |
|
|
|
|
| |||
|
1,085,092 |
|
Shenzhen Airport Co. Ltd., A Shares (Stock Connect)(a) |
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Transportation Infrastructure—0.9% |
|
1,367,102 |
| |
|
1,005,000 |
|
Tong Ren Tang Technologies Co. Ltd., H Shares(b) |
|
Pharmaceuticals—1.2% |
|
1,693,388 |
| |
|
1,812,400 |
|
Yanlord Land Group Ltd. |
|
Real Estate Management & Development—1.7% |
|
2,419,301 |
| |
|
|
|
|
|
|
|
5,479,791 |
| |
|
EGYPT—1.3% |
|
|
|
|
| |||
|
133,914 |
|
Edita Food Industries SAE, GDR |
|
Food Products—0.6% |
|
936,059 |
| |
|
1,922,692 |
|
Juhayna Food Industries(c) |
|
Food Products—0.7% |
|
972,531 |
| |
|
|
|
|
|
|
|
1,908,590 |
| |
|
HONG KONG—2.8% |
|
|
|
|
| |||
|
150,000 |
|
Cafe de Coral Holdings Ltd.(b) |
|
Hotels, Restaurants & Leisure—0.3% |
|
487,740 |
| |
|
56,800 |
|
Hong Kong Aircraft Engineering Co. Ltd. |
|
Transportation Infrastructure—0.3% |
|
379,721 |
| |
|
16,016,000 |
|
Pacific Basin Shipping Ltd.(b)(c) |
|
Marine—2.2% |
|
3,140,127 |
| |
|
|
|
|
|
|
|
4,007,588 |
| |
|
INDIA—16.5% |
|
|
|
|
| |||
|
235,000 |
|
Castrol (India) Ltd.(b) |
|
Chemicals—1.1% |
|
1,601,563 |
| |
|
180,000 |
|
Container Corp. of India Ltd.(b) |
|
Road & Rail—2.4% |
|
3,406,558 |
| |
|
204,372 |
|
Godrej Consumer Products Ltd.(b) |
|
Personal Products—3.8% |
|
5,491,672 |
| |
|
450,000 |
|
Kansai Nerolac Paints Ltd.(b) |
|
Chemicals—1.9% |
|
2,753,556 |
| |
|
220,074 |
|
Mphasis Ltd.(b) |
|
Information Technology Services—1.3% |
|
1,837,516 |
| |
|
104,500 |
|
Piramal Enterprises Ltd.(b)(c) |
|
Pharmaceuticals—2.8% |
|
4,044,897 |
| |
|
420,000 |
|
Ramco Cements Ltd. (The)(b)(c) |
|
Construction Materials—3.2% |
|
4,497,603 |
| |
|
|
|
|
|
|
|
23,633,365 |
| |
|
INDONESIA—9.3% |
|
|
|
|
| |||
|
45,278,000 |
|
Ace Hardware Indonesia Tbk PT(b) |
|
Specialty Retail—2.2% |
|
3,176,705 |
| |
|
9,086,300 |
|
AKR Corporindo Tbk PT(b) |
|
Trading Companies & Distributors—3.2% |
|
4,612,575 |
| |
|
17,746,837 |
|
Bank Permata Tbk PT(b)(c) |
|
Banks—0.7% |
|
924,093 |
| |
|
2,061,500 |
|
Delfi Ltd. |
|
Food Products—2.4% |
|
3,378,903 |
| |
|
17,142,800 |
|
Holcim Indonesia Tbk PT(b) |
|
Construction Materials—0.8% |
|
1,157,095 |
| |
|
256,600 |
|
XL Axiata Tbk PT(b)(c) |
|
Wireless Telecommunication Services— –% |
61,706 |
| ||
|
|
|
|
|
|
|
13,311,077 |
| |
|
|
Aberdeen Emerging Markets Smaller Company Opportunities Fund, Inc. |
Portfolio of Investments (unaudited) (continued)
As of April 30, 2017
|
Shares |
|
Description |
|
Industry and Percentage |
|
Value |
| |
|
LONG-TERM EQUITY SECURITIES IN EMERGING MARKET COUNTRIES (continued) |
|
|
| |||||
|
COMMON STOCKS (continued) |
|
|
|
|
| |||
|
JORDAN—1.3% |
|
|
|
|
| |||
|
73,806 |
|
Hikma Pharmaceuticals PLC(b) |
|
Pharmaceuticals—1.3% |
|
$ |
1,851,883 |
|
|
KENYA—1.1% |
|
|
|
|
| |||
|
701,800 |
|
East African Breweries Ltd. |
|
Beverages—1.1% |
|
1,564,089 |
| |
|
MALAYSIA—5.7% |
|
|
|
|
| |||
|
4,537,900 |
|
Aeon Co. (M) Bhd |
|
Multiline Retail—1.8% |
|
2,592,488 |
| |
|
273,000 |
|
Heineken Malaysia Bhd |
|
Beverages—0.8% |
|
1,103,069 |
| |
|
790,200 |
|
Oriental Holdings Bhd(b) |
|
Automobiles—0.9% |
|
1,233,351 |
| |
|
1,943,460 |
|
SP Setia Bhd Group |
|
Real Estate Management & Development—1.1% |
|
1,638,577 |
| |
|
240,000 |
|
United Plantations Bhd |
|
Food Products—1.1% |
|
1,548,030 |
| |
|
|
|
|
|
|
|
8,115,515 |
| |
|
MEXICO—3.1% |
|
|
|
|
| |||
|
98,676 |
|
Grupo Aeroportuario del Centro Norte SAB de CV, ADR(c) |
|
Transportation Infrastructure—3.1% |
|
4,377,267 |
| |
|
NETHERLANDS—2.2% |
|
|
|
|
| |||
|
52,000 |
|
ASM International NV(b) |
|
Semiconductors & Semiconductor Equipment—2.2% |
|
3,129,905 |
| |
|
NIGERIA—0.9% |
|
|
|
|
| |||
|
2,125,000 |
|
Guinness Nigeria PLC |
|
Beverages—0.3% |
|
417,350 |
| |
|
19,437,011 |
|
Zenith Bank PLC |
|
Banks—0.6% |
|
947,836 |
| |
|
|
|
|
|
|
|
1,365,186 |
| |
|
PERU—0.5% |
|
|
|
|
| |||
|
195,354 |
|
Grana y Montero SA, ADR(c) |
|
Construction & Engineering—0.5% |
|
658,343 |
| |
|
PHILIPPINES—3.9% |
|
|
|
|
| |||
|
778,080 |
|
Jollibee Foods Corp.(b) |
|
Hotels, Restaurants & Leisure—2.3% |
|
3,269,208 |
| |
|
1,540,000 |
|
Pilipinas Shell Petroleum Corp.(c) |
|
Oil, Gas & Consumable Fuels—1.6% |
|
2,265,386 |
| |
|
|
|
|
|
|
|
5,534,594 |
| |
|
POLAND—1.3% |
|
|
|
|
| |||
|
217,115 |
|
Eurocash SA |
|
Food & Staples Retailing—1.3% |
|
1,925,334 |
| |
|
REPUBLIC OF SOUTH KOREA—2.7% |
|
|
|
|
| |||
|
131,171 |
|
BNK Financial Group, Inc.(b) |
|
Banks—0.8% |
|
1,100,096 |
| |
|
3,800 |
|
Medy-Tox, Inc.(b) |
|
Biotechnology—1.2% |
|
1,669,931 |
| |
|
6,000 |
|
Shinsegae, Inc.(b) |
|
Multiline Retail—0.7% |
|
1,078,342 |
| |
|
|
|
|
|
|
|
3,848,369 |
| |
|
ROMANIA—1.7% |
|
|
|
|
| |||
|
851,000 |
|
BRD-Groupe Societe Generale SA(b) |
|
Banks—1.7% |
|
2,457,378 |
| |
|
RUSSIA—1.0% |
|
|
|
|
| |||
|
133,150 |
|
Synergy PJSC(c) |
|
Beverages—1.0% |
|
1,405,672 |
| |
|
SOUTH AFRICA—6.8% |
|
|
|
|
| |||
|
893,654 |
|
African Oxygen Ltd. |
|
Chemicals—0.9% |
|
1,328,737 |
| |
|
148,384 |
|
City Lodge Hotels Ltd. |
|
Hotels, Restaurants & Leisure—1.2% |
|
1,651,308 |
| |
|
268,900 |
|
Clicks Group Ltd.(b) |
|
Food & Staples Retailing—1.9% |
|
2,702,507 |
| |
|
166,676 |
|
JSE Ltd. |
|
Capital Markets—1.2% |
|
1,776,048 |
| |
|
164,735 |
|
SPAR Group Ltd. (The)(b) |
|
Food & Staples Retailing—1.6% |
|
2,220,349 |
| |
|
|
|
|
|
|
|
9,678,949 |
| |
|
Aberdeen Emerging Markets Smaller Company Opportunities Fund, Inc. |
|
Portfolio of Investments (unaudited) (continued)
As of April 30, 2017
|
Shares |
|
Description |
|
Industry and Percentage |
|
Value |
| |
|
LONG-TERM EQUITY SECURITIES IN EMERGING MARKET COUNTRIES (continued) |
|
|
| |||||
|
COMMON STOCKS (continued) |
|
|
|
|
| |||
|
SRI LANKA—2.0% |
|
|
|
|
| |||
|
2,689,150 |
|
John Keells Holdings PLC |
|
Industrial Conglomerates—2.0% |
|
$ |
2,839,037 |
|
|
TAIWAN—1.7% |
|
|
|
|
| |||
|
175,000 |
|
Poya International Co. Ltd. |
|
Multiline Retail—1.7% |
|
2,389,712 |
| |
|
THAILAND—5.4% |
|
|
|
|
| |||
|
2,600,100 |
|
BEC World PCL, Foreign Shares(b) |
|
Media—1.0% |
|
1,405,663 |
| |
|
190,000 |
|
Bumrungrad Hospital PCL, Foreign Shares(b) |
|
Health Care Providers & Services—0.7% |
|
963,118 |
| |
|
1,020,000 |
|
Central Pattana PCL, Foreign Shares(b) |
|
Real Estate Management & Development—1.2% |
|
1,767,474 |
| |
|
1,679,000 |
|
Hana Microelectronics PCL, Foreign Shares(b) |
|
Electronic Equipment Instruments & Components—1.5% |
|
2,062,952 |
| |
|
184,000 |
|
Siam City Cement PCL, Foreign Shares(b) |
|
Construction Materials—1.0% |
|
1,473,489 |
| |
|
|
|
|
|
|
|
7,672,696 |
| |
|
TURKEY—6.3% |
|
|
|
|
| |||
|
1,982,000 |
|
Aksigorta AS(b)(c) |
|
Insurance—1.0% |
|
1,472,851 |
| |
|
176,154 |
|
AvivaSA Emeklilik ve Hayat AS |
|
Insurance—0.7% |
|
974,018 |
| |
|
584,702 |
|
Cimsa Cimento Sanayi VE Ticaret A.S.(b) |
|
Construction Materials—1.7% |
|
2,467,027 |
| |
|
264,391 |
|
Coca-Cola Icecek AS(b) |
|
Beverages—1.9% |
|
2,689,189 |
| |
|
84,978 |
|
Logo Yazilim Sanayi Ve Ticaret(c) |
|
Software—1.0% |
|
1,390,003 |
| |
|
|
|
|
|
|
|
8,993,088 |
| |
|
|
|
|
|
|
|
135,890,761 |
| |
|
PRIVATE EQUITY—1.1% |
|
|
|
|
| |||
|
GLOBAL—0.7% |
|
|
|
|
| |||
|
7,248,829 |
(d) |
Emerging Markets Ventures I, L.P.(b)(c)(e)(f)(g)(h) |
|
Private Equity— –% |
|
150,920 |
| |
|
2,400,000 |
(d) |
Telesoft Partners II QP, L.P.(b)(c)(e)(f)(i) |
|
Private Equity—0.7% |
|
926,856 |
| |
|
|
|
|
|
|
|
1,077,776 |
| |
|
ISRAEL—0.4% |
|
|
|
|
| |||
|
1,674,587 |
(d) |
BPA Israel Ventures, LLC(b)(c)(e)(f)(g)(h) |
|
Private Equity—0.1% |
|
197,099 |
| |
|
72,640 |
|
Exent Technologies Ltd. Preferred A1 Shares(b)(c)(e)(f)(i)(j) |
|
Private Equity— –% |
|
– |
| |
|
62,304 |
|
Exent Technologies Ltd. Preferred C Shares(b)(c)(e)(f)(i)(j) |
|
Private Equity— –% |
|
– |
| |
|
15,716 |
|
Exent Technologies Ltd. Warrants A1(b)(c)(e)(f)(i)(j) |
|
Private Equity— –% |
|
– |
| |
|
52 |
|
Flash Networds Ltd. Warrants Ordinary(b)(c)(e)(f)(i)(j) |
|
Private Equity— –% |
|
– |
| |
|
46,856 |
|
Flash Networks Ltd. Ordinary Shares(b)(c)(e)(f)(i)(j) |
|
Private Equity— –% |
|
33,590 |
| |
|
12 |
|
Flash Networks Ltd. Series C Preferred(b)(c)(e)(f)(i)(j) |
|
Private Equity— –% |
|
– |
| |
|
23,264 |
|
Flash Networks Ltd. Series C-1 Preferred(b)(c)(e)(f)(i)(j) |
|
Private Equity— –% |
|
– |
| |
|
13,526 |
|
Flash Networks Ltd. Series D Preferred(b)(c)(e)(f)(i)(j) |
|
Private Equity— –% |
|
– |
| |
|
9,952 |
|
Flash Networks Ltd. Series E Preferred(b)(c)(e)(f)(i)(j) |
|
Private Equity— –% |
|
– |
| |
|
22 |
|
Flash Networks Ltd. Warrants C(b)(c)(e)(f)(i)(j) |
|
Private Equity— –% |
|
– |
| |
|
2,750,000 |
(d) |
Giza GE Venture Fund III, L.P.(b)(c)(e)(f)(h) |
|
Private Equity—0.1% |
|
98,258 |
| |
|
761,184 |
(d) |
Neurone Ventures II, L.P.(b)(c)(e)(f)(i) |
|
Private Equity—0.2% |
|
219,952 |
| |
|
32,574 |
|
Vidyo, Inc. Trust A (Preferred)(b)(c)(e)(f)(i)(k) |
|
Private Equity— –% |
|
– |
| |
|
15,531 |
|
Vidyo, Inc. Trust B (Preferred)(b)(c)(e)(f)(i)(k) |
|
Private Equity— –% |
|
– |
| |
|
13,219 |
|
Vidyo, Inc. Trust B1 (Preferred)(b)(c)(e)(f)(i)(k) |
|
Private Equity— –% |
|
– |
| |
|
6,864 |
|
Vidyo, Inc. Trust C (Preferred)(b)(c)(e)(f)(i)(k) |
|
Private Equity— –% |
|
– |
| |
|
4,150 |
|
Vidyo, Inc. Trust C1 (Preferred)(b)(c)(e)(f)(i)(k) |
|
Private Equity— –% |
|
– |
| |
|
1,802 |
|
Vidyo, Inc. Trust Common(b)(c)(e)(f)(i)(k) |
|
Private Equity— –% |
|
– |
| |
|
2,713 |
|
Vidyo, Inc. Trust D (Preferred)(b)(c)(e)(f)(i)(k) |
|
Private Equity— –% |
|
– |
| |
|
|
|
|
|
|
|
548,899 |
| |
|
|
|
|
|
|
|
1,626,675 |
| |
|
|
Aberdeen Emerging Markets Smaller Company Opportunities Fund, Inc. |
Portfolio of Investments (unaudited) (continued)
As of April 30, 2017
|
Shares |
|
Description |
|
Industry and Percentage |
|
Value |
| |
|
LONG-TERM EQUITY SECURITIES IN EMERGING MARKET COUNTRIES (continued) |
|
|
| |||||
|
PREFERRED STOCK—0.1% |
|
|
|
|
| |||
|
MALAYSIA—0.1% |
|
|
|
|
| |||
|
767,512 |
|
SP Setia Bhd Group, Preferred Shares(c)(l) |
|
Real Estate Management & Development—0.1% |
|
$ |
196,254 |
|
|
|
|
|
|
|
|
196,254 |
| |
|
RIGHTS—0.0% |
|
|
| |||||
|
NIGERIA—0.0% |
|
|
| |||||
|
965,909 |
|
Guinness Nigeria PLC, expires 07/28/17(c) |
Beverages— –% |
|
6,639 |
| ||
|
THAILAND—0.0% |
|
|
| |||||
|
54,399 |
|
Siam City Cement PCL, expires 05/15/17(b)(c) |
Construction Materials— –% |
|
42,462 |
| ||
|
|
|
|
|
|
|
49,101 |
| |
|
|
|
Total Long-Term Equity Securities in Emerging Market Countries—96.3% (cost $147,657,332) |
|
137,762,791 |
| |||
|
LONG-TERM EQUITY SECURITIES IN DEVELOPED MARKET COUNTRIES—2.5% |
|
|
| |||||
|
COMMON STOCK—2.5% |
|
|
|
|
| |||
|
UNITED STATES—2.5% |
|
|
|
|
| |||
|
46,162 |
|
EPAM Systems, Inc.(c) |
|
Information Technology Services—2.5% |
|
3,554,474 |
| |
|
|
|
|
|
|
|
3,554,474 |
| |
|
PRIVATE EQUITY—0.0% |
|
|
| |||||
|
UNITED STATES—0.0% |
|
|
| |||||
|
1,952,000 |
(d) |
Technology Crossover Ventures IV, L.P.(b)(c)(e)(f)(g)(h) |
|
Private Equity— –% |
|
2,264 |
| |
|
|
|
|
|
|
|
2,264 |
| |
|
|
|
Total Long-Term Equity Securities in Developed Market Countries—2.5% (cost $2,103,096) |
|
3,556,738 |
| |||
|
Aberdeen Emerging Markets Smaller Company Opportunities Fund, Inc. |
|
Portfolio of Investments (unaudited) (concluded)
As of April 30, 2017
|
Shares |
|
Description |
|
Value |
| |
|
SHORT-TERM INVESTMENT—0.8% |
|
|
| |||
|
UNITED STATES—0.8% |
|
|
| |||
|
$1,073,395 |
|
State Street Institutional U.S. Government Money Market Fund(m) |
|
$ |
1,073,395 |
|
|
|
|
|
|
1,073,395 |
| |
|
|
|
Total Short-Term Investment—0.8% (cost $1,073,395) |
|
1,073,395 |
| |
|
|
|
Total Investments—99.6% (cost $150,833,823)(n) |
|
142,392,924 |
| |
|
|
|
Other Assets in Excess of Liabilities—0.4% |
|
485,615 |
| |
|
|
|
Net Assets—100.0% |
|
$ |
142,878,539 |
|
|
(a) |
China A shares. These shares are issued in local currency, traded in the local stock markets and are held through either a Qualified Foreign Institutional Investor (QFII) license or the Shanghai or Shenzhen Hong-Kong Stock Connect program. | |
|
(b) |
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 2(a) of the accompanying Notes to Financial Statements. | |
|
(c) |
Non-income producing security. | |
|
(d) |
Represents contributed capital. | |
|
(e) |
Restricted security, not readily marketable. See Note 6 of the accompanying Notes to Financial Statements. | |
|
(f) |
Illiquid security. | |
|
(g) |
As of April 30, 2017, the aggregate amount of open commitments for the Fund is $1,524,584. | |
|
(h) |
In liquidation. | |
|
(i) |
Active investments. | |
|
(j) |
Exent Technologies Ltd. and Flash Networks Ltd. were securities received from the dissolution of Concord Fund I Liquidating Main Trust. See Note 6 of the accompanying Notes to Financial Statements. | |
|
(k) |
Vidyo, Inc. Trust was a spinoff from SVE Star Ventures IX. See Note 6 of the accompanying Notes to Financial Statements. | |
|
(l) |
Redeemable Convertible Preferred security. | |
|
(m) |
Registered investment company advised by State Street Global Advisors. | |
|
(n) |
See accompanying Notes to Financial Statements for tax unrealized appreciation/(depreciation) of securities. | |
|
ADR |
American Depositary Receipt | |
|
BDR |
Brazilian Depositary Receipt | |
|
GDR |
Global Depositary Receipt | |
See Notes to Financial Statements.
|
|
Aberdeen Emerging Markets Smaller Company Opportunities Fund, Inc. |
|
|
|
|
| ||
|
|
|
|
| ||
|
Statement of Assets and Liabilities (unaudited) |
|
|
| ||
|
|
|
|
| ||
|
As of April 30, 2017
|
|
|
| ||
|
|
|
|
| ||
|
|
|
|
| ||
|
Assets |
|
|
| ||
|
|
|
|
| ||
|
Investments, at value (cost $149,760,428) |
|
$ 141,319,529 |
| ||
|
Short-term investments, at value (cost $1,073,395) |
|
1,073,395 |
| ||
|
Foreign currency, at value (cost $167,508) |
|
169,211 |
| ||
|
Interest and dividends receivable |
|
475,412 |
| ||
|
Receivable for investments sold |
|
85,618 |
| ||
|
Tax reclaim receivable |
|
1,510 |
| ||
|
Prepaid expenses |
|
49,132 |
| ||
|
Total assets |
|
143,173,807 |
| ||
|
|
|
|
| ||
|
Liabilities |
|
|
| ||
|
Investment advisory fees payable (Note 3) |
|
121,966 |
| ||
|
Deferred foreign capital gains tax |
|
70,812 |
| ||
|
Investor relations fees payable (Note 3) |
|
10,069 |
| ||
|
Administration fees payable (Note 3) |
|
9,168 |
| ||
|
Other accrued expenses |
|
83,253 |
| ||
|
Total liabilities |
|
295,268 |
| ||
|
|
|
|
| ||
|
Net Assets |
|
$ 142,878,539 |
| ||
|
|
|
|
| ||
|
Composition of Net Assets: |
|
|
| ||
|
Common stock (par value $.001 per share) (Note 5) |
|
$ 9,485 |
| ||
|
Paid-in capital in excess of par |
|
161,092,470 |
| ||
|
Accumulated net investment income |
|
989,939 |
| ||
|
Accumulated net realized loss from investment and foreign currency transactions |
|
(10,706,511 |
) | ||
|
Net unrealized (depreciation) on investments and other assets and liabilities denominated in foreign currencies |
|
(8,506,844 |
) | ||
|
Net Assets |
|
$ 142,878,539 |
| ||
|
Net asset value per share based on 9,484,813 shares issued and outstanding |
|
$ 15.06 |
| ||
|
|
|
|
| ||
|
|
|
|
| ||
|
See Notes to Financial Statements. |
|
|
| ||
|
|
|
|
| ||
|
|
|
|
| ||
|
Aberdeen Emerging Markets Smaller Company Opportunities Fund, Inc. |
| ||||
|
|
|
|
| ||
|
|
|
|
| ||
|
|
|
|
|
|
| ||
|
|
|
|
|
|
| ||
|
Statements of Changes in Net Assets |
|
|
|
|
| ||
|
|
|
|
|
|
| ||
|
|
|
|
|
|
| ||
|
|
|
|
|
|
| ||
|
|
|
|
|
|
| ||
|
|
|
For the |
|
For the |
| ||
|
|
|
|
|
|
| ||
|
Increase/(Decrease) in Net Assets |
|
|
|
|
| ||
|
|
|
|
|
|
| ||
|
Operations: |
|
|
|
|
| ||
|
Net investment income |
|
$ 224,615 |
|
$ 1,370,276 |
| ||
|
Net realized loss from investment and foreign currency related transactions |
|
(2,005,841 |
) |
(11,812,830 |
) | ||
|
Net change in unrealized appreciation on investments and foreign currency translations |
|
7,375,764 |
|
22,519,431 |
| ||
|
Net increase in net assets resulting from operations |
|
5,594,538 |
|
12,076,877 |
| ||
|
|
|
|
|
|
| ||
|
Distributions to Shareholders from: |
|
|
|
|
| ||
|
Net investment income |
|
— |
|
(970,048 |
) | ||
|
Net decrease in net assets from distributions |
|
— |
|
(970,048 |
) | ||
|
|
|
|
|
|
| ||
|
Common Stock Transactions: |
|
|
|
|
| ||
|
Repurchase of common stock from open market repurchase program (159,122 and 90,827 shares, respectively) (Note 7) |
|
(1,879,769 |
) |
(1,043,716 |
) | ||
|
Change in net assets from capital transactions |
|
(1,879,769 |
) |
(1,043,716 |
) | ||
|
Change in net assets resulting from operations |
|
3,714,769 |
|
10,063,113 |
| ||
|
|
|
|
|
|
| ||
|
Net Assets: |
|
|
|
|
| ||
|
Beginning of period |
|
139,163,770 |
|
129,100,657 |
| ||
|
End of period (including accumulated net investment income of $989,939 and $765,324, respectively) |
|
$ 142,878,539 |
|
$ 139,163,770 |
| ||
|
|
|
|
|
|
| ||
|
Amounts listed as “–” are $0 or round to $0. |
|
|
|
|
| ||
|
|
|
|
|
|
| ||
|
See Notes to Financial Statements. |
|
|
|
|
| ||
|
|
|
|
|
|
| ||
|
|
|
|
|
|
| ||
|
Aberdeen Emerging Markets Smaller Company Opportunities Fund, Inc. |
| ||||||
|
|
|
|
|
|
| ||
|
|
|
|
|
|
| ||
Financial Highlights
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the |
|
For the Fiscal Years Ended October 31, |
| ||||||||
|
|
|
(unaudited) |
|
2016 |
|
2015 |
|
2014 |
|
2013 |
|
2012 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
PER SHARE OPERATING PERFORMANCE(a): |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net asset value per common share, beginning of period |
|
$14.43 |
|
$13.26 |
|
$15.69 |
|
$22.69 |
|
$22.95 |
|
$20.02 |
|
|
Net investment income |
|
0.02 |
|
0.14 |
|
0.11 |
|
0.18 |
|
0.23 |
|
0.42 |
|
|
Net realized and unrealized gains/(losses) on investments and foreign currency transactions |
|
0.58 |
|
1.11 |
|
(2.34 |
) |
(0.93 |
) |
(0.10 |
) |
2.85 |
|
|
Total from investment operations applicable to common shareholders |
|
0.60 |
|
1.25 |
|
(2.23 |
) |
(0.75 |
) |
0.13 |
|
3.27 |
|
|
Distributions to common shareholders from: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net investment income |
|
– |
|
(0.10 |
) |
(0.21 |
) |
(0.30 |
) |
(0.39 |
) |
(0.34 |
) |
|
Net realized gains |
|
– |
|
– |
|
– |
|
(5.73 |
) |
– |
|
– |
|
|
Total distributions |
|
– |
|
(0.10 |
) |
(0.21 |
) |
(6.03 |
) |
(0.39 |
) |
(0.34 |
) |
|
Capital Share Transactions: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Impact due to capital shares issued from stock distribution (Note 5) |
|
– |
|
– |
|
– |
|
(0.22 |
) |
– |
|
– |
|
|
Impact due to open market repurchase program (Note 7) |
|
0.03 |
|
0.02 |
|
0.01 |
|
– |
|
– |
|
– |
|
|
Total capital share transactions |
|
0.03 |
|
0.02 |
|
0.01 |
|
(0.22 |
) |
– |
|
– |
|
|
Net asset value per common share, end of period |
|
$15.06 |
|
$14.43 |
|
$13.26 |
|
$15.69 |
|
$22.69 |
|
$22.95 |
|
|
Market value, end of period |
|
$13.63 |
|
$12.33 |
|
$11.55 |
|
$14.15 |
|
$20.47 |
|
$20.65 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Investment Return Based on(b): |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Market value |
|
10.54% |
|
7.60% |
|
(17.08% |
) |
1.00% |
|
1.04% |
|
16.56% |
|
|
Net asset value |
|
4.37% |
|
9.69% |
|
(14.15% |
) |
1.03% |
|
0.77% |
|
16.67% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Ratio to Average Net Assets Applicable to Common Shareholders/Supplementary Data: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net assets applicable to common shareholders, end of period (000 omitted) |
|
$142,879 |
|
$139,164 |
|
$129,101 |
|
$153,216 |
|
$187,147 |
|
$189,240 |
|
|
Average net assets applicable to common shareholders (000 omitted) |
|
$132,119 |
|
$130,330 |
|
$140,522 |
|
$151,939 |
|
$190,084 |
|
$175,613 |
|
|
Net operating expenses, net of fee waivers |
|
1.53% |
(c) |
1.55% |
|
1.52% |
|
1.61% |
|
1.47% |
|
1.43% |
|
|
Net operating expenses, excluding fee waivers |
|
1.57% |
(c) |
1.60% |
|
1.57% |
|
1.66% |
|
1.52% |
|
1.48% |
|
|
Net investment income |
|
0.34% |
(c) |
1.05% |
|
0.79% |
|
1.12% |
|
0.99% |
|
1.97% |
|
|
Portfolio turnover |
|
7.39% |
|
13.89% |
|
9.08% |
|
9.88% |
|
99.18% |
|
5.14% |
|
(a) Based on average shares outstanding.
(b) Total investment return based on market value is calculated assuming that shares of the Fund’s common stock were purchased at the closing market price as of the beginning of the period, dividends, capital gains, and other distributions were reinvested as provided for in the Fund’s dividend reinvestment plan and then sold at the closing market price per share on the last day of the period. The computation does not reflect any sales commission investors may incur in purchasing or selling shares of the Fund. The total investment return based on the net asset value is similarly computed except that the Fund’s net asset value is substituted for the closing market value.
(c) Annualized.
Amounts listed as “–” are $0 or round to $0.
See Notes to Financial Statements.
|
Aberdeen Emerging Markets Smaller Company Opportunities Fund, Inc. |
|
Notes to Financial Statements (unaudited)
April 30, 2017
1. Organization
Aberdeen Emerging Markets Smaller Company Opportunities Fund, Inc. (the “Fund”) was incorporated in Maryland on October 12, 1993. The Fund is registered under the Investment Company Act of 1940, as amended (the “1940 Act”), as a closed-end diversified management investment company. The Fund trades on the NYSE MKT under the ticker symbol “ABE”.
The Fund’s investment objective is to seek long-term capital appreciation.
As a fundamental policy, under normal market conditions, at least 80% of the Fund’s net assets, plus any borrowings for investment purposes, will be invested in equity securities of emerging market smaller company issuers. An emerging market country is any country determined by Aberdeen Asset Managers Limited, the Fund’s investment adviser (“AAML” or the “Adviser”), to have an emerging market economy, considering factors such as the country’s credit rating, its political and economic stability and the development of its financial and capital markets. Emerging market countries for purposes of this policy can include every nation in the world except the U.S., Canada, Japan, Australia, New Zealand and most countries located in Western Europe. Smaller companies for the purposes of this policy can be companies that, at the time of purchase, have a market capitalization of less than $5 billion.
2. Summary of Significant Accounting Policies
The following is a summary of significant accounting policies followed by the Fund in the preparation of its financial statements. The policies conform to generally accepted accounting principles in the United States of America (“GAAP”). The preparation of financial statements requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, disclosure of contingent assets and liabilities at the date of the financial statements, and the reported amounts of income and expenses for the period. Actual results could differ from those estimates. The accounting records of the Fund are maintained in U.S. Dollars.
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 the 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 Investment Company Act of 1940, as amended, 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
Notes to Financial Statements (unaudited) (continued)
April 30, 2017
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.
The Fund may also invest in private equity private placement securities, which represented 1.1% of the net assets of the Fund as of April 30, 2017. The private equity private placement securities in which the Fund is invested are deemed to be restricted securities. In the absence of readily ascertainable market values, these securities are valued at fair value as determined in good faith by, or under the direction of the Board, pursuant to valuation policies and procedures established by the Board. The Fund’s estimate of fair value assumes a willing buyer and a willing seller neither of whom are acting under the compulsion to buy or sell. Although these securities may be resold in privately negotiated transactions, the prices realized on such sales could differ from the prices originally paid by the Fund or the current carrying values, and the difference could be material. These securities are stated at fair value as determined by the Fund’s Pricing Committee by utilizing the net asset valuations provided by the underlying funds as a practical expedient. In determining the fair value of these investments, management uses the market approach which includes as the primary input the capital balance reported; however, adjustments to the reported capital balance may be made based on various factors, including, but not limited to, the attributes of the interest held, including the rights and obligations, and any restrictions or illiquidity of such interests, and the fair value of these private equity investments.
In accordance with the authoritative guidance on fair value measurements and disclosures under GAAP, 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 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 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 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 April 30, 2017 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 |
|
Level 2 |
|
Level 3 |
|
Total |
|
|
Long-Term Investments
|
|
|
|
|
|
|
|
|
|
|
Banks |
|
$947,836 |
|
$4,481,567 |
|
$– |
|
$5,429,403 |
|
|
Beverages |
|
4,490,180 |
|
2,689,189 |
|
– |
|
7,179,369 |
|
|
Capital Markets |
|
1,776,048 |
|
– |
|
– |
|
1,776,048 |
|
|
Chemicals |
|
1,328,737 |
|
4,355,119 |
|
– |
|
5,683,856 |
|
|
Commercial Services & Supplies |
|
685,032 |
|
– |
|
– |
|
685,032 |
|
|
Construction & Engineering |
|
658,343 |
|
– |
|
– |
|
658,343 |
|
|
Food & Staples Retailing |
|
1,925,334 |
|
4,922,856 |
|
– |
|
6,848,190 |
|
|
Food Products |
|
6,835,523 |
|
– |
|
– |
|
6,835,523 |
|
|
Health Care Providers & Services |
|
1,481,172 |
|
963,118 |
|
– |
|
2,444,290 |
|
|
Hotels, Restaurants & Leisure |
|
1,651,308 |
|
3,756,948 |
|
– |
|
5,408,256 |
|
|
Industrial Conglomerates |
|
2,839,037 |
|
– |
|
– |
|
2,839,037 |
|
|
Information Technology Services |
|
4,621,874 |
|
1,837,516 |
|
– |
|
6,459,390 |
|
|
Insurance |
|
974,018 |
|
1,472,851 |
|
– |
|
2,446,869 |
|
|
Multiline Retail |
|
4,982,200 |
|
1,078,342 |
|
– |
|
6,060,542 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Aberdeen Emerging Markets Smaller Company Opportunities Fund, Inc. |
|
Notes to Financial Statements (unaudited) (continued)
April 30, 2017
|
Investments, at Value |
|
Level 1 |
|
Level 2 |
|
Level 3 |
|
Total |
|
|
Oil, Gas & Consumable Fuels |
|
$2,265,386 |
|
$– |
|
$– |
|
$2,265,386 |
|
|
Real Estate Management & Development |
|
12,441,193 |
|
1,767,474 |
|
– |
|
14,208,667 |
|
|
Road & Rail |
|
1,735,349 |
|
3,406,558 |
|
– |
|
5,141,907 |
|
|
Software |
|
3,087,800 |
|
– |
|
– |
|
3,087,800 |
|
|
Textiles, Apparel & Luxury Goods |
|
2,112,439 |
|
– |
|
– |
|
2,112,439 |
|
|
Transportation Infrastructure |
|
8,901,173 |
|
– |
|
– |
|
8,901,173 |
|
|
Other |
|
– |
|
43,169,969 |
|
– |
|
43,169,969 |
|
|
Rights |
|
49,101 |
|
– |
|
– |
|
49,101 |
|
|
Short-Term Investment |
|
1,073,395 |
|
– |
|
– |
|
1,073,395 |
|
|
Total |
|
$66,862,478 |
|
$73,901,507 |
|
$– |
|
$140,763,985 |
|
|
Private Equity(a) |
|
|
|
|
|
|
|
1,628,939 |
|
|
Total Investments |
|
|
|
|
|
|
|
$142,392,924 |
|
Amounts listed as “–” are $0 or round to $0.
(a) Private Equity investments are measured at the net asset valuations, as a practical expedient for fair value, and are not required to be classified in the fair value hierarchy as per Accounting Standards Update 2015-07. The fair value amounts presented are intended to permit reconciliation to the total investment amount presented in the Portfolio of Investments.
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. For the six-month period ended April 30, 2017, securities issued by Clicks Group Ltd., Oriental Holdings Bhd, Piramal Enterprises Ltd., and The SPAR Group Ltd. in the amounts of $2,702,507, $1,233,351, $4,044,897 and $2,220,349, respectively, transferred from Level 1 to Level 2 because there was a valuation factor applied at April 30, 2017. Securities issued by Aeon Co. (M) Bhd, African Oxygen Ltd., Eurocash SA, Heineken Malaysia Bhd, Hong Kong Aircraft Engineering Co. Ltd., JSE Ltd., Poya International Co. Ltd. and Yanlord Land Group Ltd., in the amounts of $2,592,488, $1,328,737, $1,925,334, $1,103,069, $379,721, $1,776,048, $2,389,712 and $2,419,301, respectively, transferred from Level 2 to Level 1 because there was not a valuation factor applied at April 30, 2017.
b. Foreign Currency Translation:
Foreign securities, currencies, and other assets and liabilities denominated in foreign currencies are translated into U.S. Dollars at the exchange rate of said currencies against the U.S. Dollar, as of the Valuation Time, as provided by an independent pricing service approved by the Board.
Foreign currency amounts are translated into U.S. Dollars on the following basis:
(i) market value of investment securities, other assets and liabilities – at the current daily rates of exchange; and
(ii) purchases and sales of investment securities, income and expenses – at the rate of exchange prevailing on the respective dates of such transactions.
The Fund does not isolate that portion of gains and losses on investments in equity securities which is due to changes in the foreign exchange rates from that which is due to changes in market prices of equity securities. Accordingly, realized and unrealized foreign currency gains and losses with respect to such securities are included in the reported net realized and unrealized gains and losses on investment transactions balances.
The Fund reports certain foreign currency related transactions and foreign taxes withheld on security transactions as components of realized gains for financial reporting purposes, whereas such foreign currency related transactions are treated as ordinary income for U.S. federal income tax purposes.
Net unrealized currency gains or losses from valuing foreign currency denominated assets and liabilities at period end exchange rates are reflected as a component of net unrealized appreciation/depreciation in value of investments, and translation of other assets and liabilities denominated in foreign currencies.
Net realized foreign exchange gains or losses represent foreign exchange gains and losses from transactions in foreign currencies and forward foreign currency contracts, exchange gains or losses realized between the trade date and settlement date on security transactions, and the difference between the amounts of interest and dividends
Notes to Financial Statements (unaudited) (continued)
April 30, 2017
recorded on the Fund’s books and the U.S. Dollar equivalent of the amounts actually received.
Foreign security and currency transactions may involve certain considerations and risks not typically associated with those of domestic origin, including unanticipated movements in the value of the foreign currency relative to the U.S. Dollar. Generally, when the U.S. Dollar rises in value against foreign currency, the Fund’s investments denominated in that foreign currency will lose value because the foreign currency is worth fewer U.S. Dollars; the opposite effect occurs if the U.S. Dollar falls in relative value.
c. 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 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.
d. Security Transactions, Investment Income and Expenses:
Security transactions are recorded on the trade date. Realized and unrealized gains/(losses) from security and currency transactions are calculated on the identified cost basis. Dividend income is recorded on the ex-dividend date except for certain dividends on foreign securities, which are recorded as soon as the Fund is informed after the ex-dividend date. Interest income and expenses are recorded on an accrual basis.
e. Distributions:
The Fund records dividends and distributions payable to its shareholders on the ex-dividend date. The amount of dividends and distributions from net investment income and net realized capital gains are determined in accordance with federal income tax regulations, which may differ from GAAP. These book basis/tax basis (“book/tax”) differences are either considered temporary or permanent in nature. To the extent these differences are permanent in nature, such amounts are reclassified within the capital accounts based on their federal tax basis treatment; temporary differences do not require reclassification. Dividends and distributions which exceed net investment income and net realized capital gains for tax purposes are reported as return of capital.
f. Federal Income Taxes:
The Fund intends to continue to qualify as a “regulated investment company” by complying with the provisions available to certain investment companies, as defined in Subchapter M of the Internal Revenue Code of 1986, as amended, and to make distributions of net investment income and net realized capital gains sufficient to relieve the Fund from all federal income taxes. Therefore, no federal income tax provision is required.
The Fund recognizes the tax benefits of uncertain tax positions only where the position is “more likely than not” to be sustained assuming examination by tax authorities. Management of the Fund has concluded that there are no significant uncertain tax positions that would require recognition in the financial statements. Since tax authorities can examine previously filed tax returns, the Fund’s U.S. federal and state tax returns for each of the four fiscal years up to the most recent fiscal year ended October 31 are subject to such review.
g. Foreign Withholding Tax:
Dividend and interest income from non-U.S. sources received by the Fund are generally subject to non-U.S. withholding taxes. In addition, the Fund may be subject to capital gains tax in certain countries in which it invests. The above taxes may be reduced or eliminated under the terms of applicable U.S. income tax treaties with some of these countries. The Fund accrues such taxes when the related income is earned.
h. Partnership Accounting Policy:
The Fund records its pro-rata share of the income/(loss) and capital gains/(losses) allocated from the private equity investments, which are classified as partnerships, and adjusts the cost of the underlying partnerships accordingly. These amounts are included in the Fund’s Statement of Operations.
i. Repurchase Agreements:
The Fund may enter into repurchase agreements under the terms of a Master Repurchase Agreement. It is the Fund’s policy that its custodian/counterparty segregate the underlying collateral securities, the value of which exceeds the principal amount of the repurchase transaction, including accrued interest. The repurchase price generally equals the price paid by the Fund plus interest negotiated on the basis of current short-term rates. To the extent that any repurchase transaction exceeds one business day, the collateral is valued on a daily basis to determine its adequacy. If the counterparty of a repurchase agreement defaults and the value of the collateral declines, or if
Notes to Financial Statements (unaudited) (continued)
April 30, 2017
bankruptcy proceedings are commenced with respect to the counterparty of the security, realization of the collateral by the Fund may be delayed or limited. Repurchase agreements are subject to contractual netting arrangements with the counterparty, Fixed Income Clearing Corp. For additional information on individual repurchase agreements, see the Portfolio of Investments.
3. Agreements and Transactions with Affiliates
a. Investment Adviser:
AAML serves as the Fund’s investment adviser with respect to all investments. AAML is a direct wholly-owned subsidiary of Aberdeen Asset Management PLC. AAML receives, as compensation for its advisory services from the Fund, an annual fee, calculated weekly and paid quarterly, equal to 1.25% of the first $100 million of the Fund’s average weekly market value or net assets (whichever is lower), 1.125% of the next $100 million and 1.00% of amounts in excess of $200 million. AAML has agreed to contractually waive 0.05% of its annual advisory fee (“Waiver Agreement”). For the six-month period ended April 30, 2017, AAML earned $700,190 for advisory services, of which it waived $28,365 pursuant to the Waiver Agreement.
b. Fund Administration:
Aberdeen Asset Management Inc. (“AAMI”) an affiliate of the Adviser, is the Fund’s Administrator, pursuant to an agreement under which AAMI receives a fee payable quarterly by the Fund, at an annual fee rate of 0.08% of the Fund’s average monthly Managed Assets. For the six-month period ended April 30, 2017, AAMI earned $52,413.
c. Investor Relations:
Under the terms of the Investor Relations Services Agreement, AAMI provides and/or engages third parties to provide investor relations services to the Fund and certain other funds advised by AAML or its affiliates as part of an Investor Relations Program. Under the Investor Relations Services Agreement, the Fund owes a portion of the fees related to the Investor Relations Program (the “Fund’s Portion”). However, investor relations services fees are limited by AAMI so that the Fund will only pay up to an annual rate of 0.05% of the Fund’s average weekly net assets. Any difference between the capped rate of 0.05% of the Fund’s average weekly net assets and the Fund’s Portion is paid for by AAMI.
Pursuant to the terms of the Investor Relations Services Agreement, AAMI (or third parties hired by AAMI), among other things, provides objective and timely information to shareholders based on publicly-available information; provides information efficiently through the use of technology while offering shareholders immediate access to knowledgeable investor relations representatives; develops and maintains effective communications with investment professionals from a wide variety of firms; creates and maintains investor relations communication materials such as fund manager interviews, films and webcasts, published white papers, magazine articles and other relevant materials discussing the Fund’s investment results, portfolio positioning and outlook; develops and maintains effective communications with large institutional shareholders; responds to specific shareholder questions; and reports activities and results to the Board and management detailing insight into general shareholder sentiment.
During the six-month period ended April 30, 2017, the Fund incurred investor relations fees of approximately $28,924. For the six-month period ended April 30, 2017, AAMI did not waive any investor relations fees because the Fund did not reach the capped amount.
d. Directors’ Purchase Plan:
Fifty percent (50%) of the annual retainer of the Independent Directors is invested in Fund shares and, at the option of each Independent Director, up to 100% of the annual retainer can be invested in shares of the Fund. During the six-month period ended April 30, 2017, 3,146 shares were purchased pursuant to the Directors’ compensation plan. As of April 30, 2017, the Directors as a group owned less than 1% of the Fund’s outstanding shares.
4. Investment Transactions
Purchases and sales of investment securities (excluding short-term securities) for the six-month period ended April 30, 2017, were $9,784,694 and $11,709,662, respectively.
5. Capital
The authorized capital of the Fund is 100 million shares of $0.001 par value common stock. During the six-month period ended April 30, 2017, the Fund repurchased 159,122 shares pursuant to its Open Market Repurchase Program, see Note 7 for further information. As of April 30, 2017, there were 9,484,813 shares of common stock issued and outstanding.
Notes to Financial Statements (unaudited) (continued)
April 30, 2017
6. Private Equity Investments
Certain of the Fund’s investments, listed in the chart below, are restricted as to resale and are valued at fair value as determined in good faith by, or under the direction of, the Board under procedures established by the Board in the absence of readily ascertainable market values.
|
Security (1) |
|
Acquisition Date(s) |
|
Total |
|
Cost |
|
Fair Value |
|
Percent |
|
Cumulative |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
BPA Israel Ventures, LLC (5) |
|
10/05/00 – 12/09/05 |
|
$2,300,000 |
|
$929,799 |
|
$197,099 |
|
0.14 |
|
$327,976 |
|
|
Emerging Markets Ventures I, L.P. (5) |
|
01/22/98 – 01/10/06 |
|
8,100,000 |
|
2,474,673 |
|
150,920 |
|
0.11 |
|
7,567,734 |
|
|
Exent Technologies Ltd. Preferred A1 Shares (2) |
|
11/29/15 |
|
– |
|
118,799 |
|
– |
|
– |
|
– |
|
|
Exent Technologies Ltd. Preferred C Shares (2) |
|
11/29/15 |
|
– |
|
– |
|
– |
|
– |
|
– |
|
|
Exent Technologies Ltd. Warrants A1 (2) |
|
11/29/15 |
|
– |
|
– |
|
– |
|
– |
|
– |
|
|
Flash Networds Ltd. Warrants Ordinary (2) |
|
11/29/15 |
|
– |
|
– |
|
– |
|
– |
|
– |
|
|
Flash Networks Ltd. Ordinary Shares (2) |
|
11/29/15 |
|
– |
|
109,226 |
|
33,590 |
|
0.02 |
|
– |
|
|
Flash Networks Ltd. Series C Preferred (2) |
|
11/29/15 |
|
– |
|
– |
|
– |
|
– |
|
– |
|
|
Flash Networks Ltd. Series C-1 Preferred (2) |
|
11/29/15 |
|
– |
|
– |
|
– |
|
– |
|
– |
|
|
Flash Networks Ltd. Series D Preferred (2) |
|
11/29/15 |
|
– |
|
– |
|
– |
|
– |
|
– |
|
|
Flash Networks Ltd. Series E Preferred (2) |
|
11/29/15 |
|
– |
|
– |
|
– |
|
– |
|
– |
|
|
Flash Networks Ltd. Warrants C (2) |
|
11/29/15 |
|
– |
|
– |
|
– |
|
– |
|
– |
|
|
Giza GE Venture Fund III, L.P. |
|
01/31/00 – 11/23/06 |
|
2,750,000 |
|
1,717,032 |
|
98,258 |
|
0.07 |
|
885,262 |
|
|
Neurone Ventures II, L.P. |
|
11/24/00 – 12/21/10 |
|
750,000 |
|
121,786 |
|
219,952 |
|
0.15 |
|
533,564 |
|
|
Technology Crossover Ventures IV, L.P. (5) |
|
03/08/00 – 09/27/10 |
|
2,000,000 |
|
359,691 |
|
2,264 |
|
– |
|
3,045,426 |
|
|
Telesoft Partners II QP, L.P. |
|
07/14/00 – 03/01/10 |
|
2,400,000 |
|
1,112,731 |
|
926,856 |
|
0.65 |
|
1,282,411 |
|
|
Vidyo, Inc. Trust A (Preferred) (3) |
|
10/24/12 |
|
– |
|
29,796 |
|
– |
|
– |
|
– |
|
|
Vidyo, Inc. Trust B (Preferred) (3) |
|
10/24/12 |
|
– |
|
14,207 |
|
– |
|
– |
|
– |
|
|
Vidyo, Inc. Trust B1 (Preferred) (3) |
|
10/24/12 |
|
– |
|
12,092 |
|
– |
|
– |
|
– |
|
|
Vidyo, Inc. Trust C (Preferred) (3) |
|
10/24/12 |
|
– |
|
6,279 |
|
– |
|
– |
|
– |
|
|
Vidyo, Inc. Trust C1 (Preferred) (3) |
|
10/24/12 |
|
– |
|
3,796 |
|
– |
|
– |
|
– |
|
|
Vidyo, Inc. Trust Common (3) |
|
10/24/12 |
|
– |
|
1,648 |
|
– |
|
– |
|
– |
|
|
Vidyo, Inc. Trust D (Preferred) (3) |
|
10/24/12 |
|
– |
|
2,482 |
|
– |
|
– |
|
– |
|
|
Total |
|
|
|
$18,300,000 |
|
$7,014,037 |
|
$1,628,939 |
|
1.14 |
|
$13,642,373 |
|
Amounts listed as “–“ are $0 or round to $0.
|
(1) |
Extent Technologies Ltd., Flash Networks Ltd., Neurone Ventures II, L.P., Telesoft Partners II QP, L.P. and Vidyo, Inc. Trust are still considered active investments by the Fund’s Adviser. BPA Israel Ventures, LLC, Giza GE Venture Fund III, L.P., Emerging Markets Ventures I, L.P. and Technology Crossover Ventures IV, L.P. are in liquidation. |
|
|
|
|
(2) |
Vidyo Inc., Trust was a spinoff from SVE Star Ventures IX. SVE Star Ventures IX reached the end of its term in 2012 and, accordingly, its entire portfolio was sold in a secondary transaction which closed on December 24, 2012. During the secondary transaction, the Fund’s pro rata holdings in Vidyo (and its affiliate Delta Vidyo) were excluded from the transaction, placed in trust and considered as a distribution-in-kind. |
|
|
|
|
(3) |
Exent Technologies Ltd. and Flash Networks Ltd. were securities received from the dissolution of Concord Fund I Liquidating Main Trust.</ |