ch33110nq.htm

UNITED STATES
 
SECURITIES AND EXCHANGE COMMISSION
 
Washington, D.C. 20549
 
 
 
 
 
FORM N-Q
 
 
 
QUARTERLY SCHEDULE OF PORTFOLIO HOLDINGS OF REGISTERED
 
MANAGEMENT INVESTMENT COMPANIES
 
Investment Company Act file number:
  
811-05770
   
Exact name of registrant as specified in charter:
  
Aberdeen Chile Fund, Inc.
   
Address of principal executive offices:
  
c/o 1735 Market Street, 32nd Floor
 
Philadelphia, PA 19103
 
   
Name and address of agent for service:
  
Ms. Andrea Melia
 
Aberdeen Asset Management Inc.
 
c/o 1735 Market Street, 32nd Floor
 
Philadelphia, PA 19103
 
   
Registrant’s telephone number, including area code:
  
866-839-5205
   
Date of fiscal year end:
  
December 31
   
Date of reporting period:
  
3/31/10


 
 
 
 
 
 

 


 

Item 1: Schedule of Investments
 

 
 

Aberdeen Chile Fund, Inc.
 
Schedule of Investments
 
March 31, 2010 (unaudited)
 

Description
  
No. of
Shares
  
Value
 
EQUITY SECURITIES-99.7%
Airlines-4.3%
 
Lan Airlines S.A.
     462,500  
$8,205,485 
 
Beverages-7.4%
 
Coca-Cola Embonor S.A., Class A
     560,000  
 661,648 
Compañia Cervecerías Unidas S.A.
     410,000  
3,062,636 
Embotelladora Andina S.A., PNB
     556,000  
1,896,598 
Viña Concha y Toro S.A.
     3,644,000  
 8,333,111 
         
13,953,993 
           
 
Chemicals-5.9%
 
Sociedad Química y Minera de Chile S.A., Class B, ADR
     127,650  
4,772,834 
Sociedad Química y Minera de Chile S.A., PNB
     172,500  
6,446,355 
         
11,219,189 
           
 
Commercial Banks-8.5%
 
Banco de Crédito e Inversiones
     79,997  
3,094,691 
Banco Santander Chile
     198,886,987  
 13,056,992 
         
16,151,683 
           
 
Diversified Telecommunication Services-3.8%
 
Empresa Nacional de Telecomunicaciones S.A.
     530,611  
 7,218,737 
 
Electric Utilities-7.2%
 
Enersis S.A.
     34,000,000  
13,607,775 
 
Food & Staples Retailing-3.5%
 
Cencosud S.A.
     1,687,000  
 6,622,620 
 
Independent Power Producers & Energy Traders-19.5%
 
Colbun S.A.
     28,432,425  
7,287,587 
Empresa Nacional de Electricidad S.A.
     18,968,000  
29,676,832 
         
36,964,419 
           
 
Industrial Conglomerates-18.1%
 
Empresas Copec S.A.
     2,297,185  
34,364,750 
 
Multiline Retail-7.2%
 
Empresas La Polar S.A.
     345,000  
 1,900,048 
S.A.C.I. Falabella S.A.
     2,004,083  
11,800,697 
         
13,700,745 
           
 
Paper & Forest Products-9.8%
 
Empresas CMPC S.A.
     435,713  
 18,466,426 
 
 
Water Utilities-4.5%
 
Inversiones Aguas Metropolitanas S.A.
  6,850,500    
$ 8,479,085 
 
TOTAL INVESTMENTS-99.7%
(Cost $81,182,573) 
  188,954,907 
 
Cash and Other Assets in Excess of Liabilities-0.3%
647,457 
 
NET ASSETS-100.0%
$ 189,602,364 
 
 

ADR
  
American Depositary Receipts.
PNB
  
Preferred Shares, Class B.
 


Security Valuation - The net asset value of the Fund is determined daily as of the close of regular trading on the New York Stock Exchange, Inc. (the “Exchange”) on each day the Exchange is open for business. Equity investments are valued at market value, which is generally determined using the closing price on the exchange or market on which the security is primarily traded at the time of valuation (the “Valuation Time”). Valuation Time is as of the close of regular trading of the “Exchange” (usually 4:00 pm Eastern Time). If no sales are reported, equity investments are generally valued at the most recent bid quotation as of the Valuation Time or at the lowest ask quotation in the case of a short sale of securities. Debt securities with a remaining maturity greater than 60 days are valued in accordance with the price supplied by a pricing service, which may use a matrix, formula or other objective method that takes into consideration market indices, yield curves and other specific adjustments. Debt obligations that will mature in 60 days or less are valued on the basis of amortized cost, which approximates market value, unless it is determined that using this method would not represent fair value. Investments in mutual funds are valued at the mutual fund’s closing net asset value per share on the day of valuation.
 
Securities and other assets for which market quotations are not readily available, or whose values have been materially affected by events occurring before the Fund’s Valuation Time, but after the close of the securities’ primary market, are valued at fair value as determined in good faith by, or under the direction of, the Board of Directors under procedures established by the Board of Directors. The Fund may utilize a service provided by an independent third party which has been approved by the Board of Directors to fair value certain securities. When fair-value pricing is employed, the prices of securities used by a fund to calculate its net asset value may differ from quoted or published prices for the same securities. The Fund’s estimate of fair value assumes a willing buyer and a willing seller neither acting under a 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.
 
In January 2010, the Financial Accounting Standards Board released ASU 2010-06, "Improving Disclosures about Fair Value Measurements." ASU 2010-06 is effective for annual and interim reporting periods beginning after December 15, 2009.
 
In accordance with ASC 820, Fair Value Measurements and Disclosures (“ASC 820”), fair value is defined as the price that the Fund would receive upon selling an investment in a timely transaction to an independent buyer in the principal or most advantageous market of the investment. ASC 820 established a three-tier hierarchy to maximize the use of observable market data and minimize the use of unobservable inputs and to establish classification of fair value measurements for disclosure purposes. Inputs refer broadly to the assumptions that market participants would use in pricing the asset or liability, including assumptions about risk, for example, the risk inherent in a particular valuation technique used to measure fair value including such a pricing model and/or the risk inherent in the inputs to the valuation technique. Inputs may be observable or unobservable. Observable inputs are inputs that reflect the assumptions market participants would use in pricing the asset or liability developed 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. The three-tier hierarchy of inputs is summarized in the three broad Levels listed below.
 
 
Level 1 – quoted prices in active markets for identical investments.
 
Level 2 – significant other 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.)

The inputs or methodology used for valuing securities are not necessarily an indication of the risk associated with investing in those securities.
The following is a summary of the inputs used as of March 31, 2010 in valuing the Fund's investments carried at value: 
                 
Investments, at value
  
Quoted Prices in Active Markets for Identical Investments (Level 1)* 
  
Significant Other Observable Inputs (Level 2)* 
  
Significant Unobservable Inputs (Level 3) 
  
Balance as of 03/31/2010
Airlines
  
$ 8,205,485 
  
$– 
  
$ – 
  
$8,205,485 
Beverages
  
13,953,993 
  
 – 
  
 – 
  
 13,953,993 
Chemicals
  
 11,219,189 
  
 – 
  
 – 
  
 11,219,189 
Commercial Banks
  
16,151,683 
  
 – 
  
 – 
  
 16,151,683 
Diversified Telecommunication Services
  
 7,218,737 
  
 – 
  
 – 
  
 7,218,737 
Electric Utilities
  
 13,607,775 
  
 – 
  
 – 
  
 13,607,775 
Food & Staples Retailing
  
 6,622,620 
  
 – 
  
 – 
  
 6,622,620 
Independent Power Producers & Energy Traders
  
 36,964,419 
  
 – 
  
 – 
  
 36,964,419 
Industrial Conglomerates
  
 34,364,750 
  
 – 
  
 – 
  
 34,364,750 
Multiline Retail
  
 13,700,745 
  
 – 
  
 – 
  
 13,700,745 
Paper & Forest Products
  
18,466,426 
  
 – 
  
 – 
  
 18,466,426 
Water Utilities
  
 8,479,085 
  
 – 
  
 – 
  
 8,479,085 
Total
  
$188,954,907 
  
$ – 
  
$ – 
  
$ 188,954,907 
 
 
* At March 31, 2010, there were no significant transfers in or out of Level 1 and Level 2 fair value measurements.
 
For the period ended March 31, 2010, there have been no significant changes to the fair value methodologies.
 
Short-Term Investment - The Fund sweeps available cash into a short-term time deposit available through Brown Brothers Harriman & Co., the Fund’s custodian. The short-term time deposit is a variable rate account classified as a short-term investment.
 
Federal Income Tax Cost - At March 31, 2010, the identified cost for federal income tax purposes, as well as the gross unrealized appreciation from investments for those securities having an excess of value over cost, gross unrealized depreciation from investments for those securities having an excess of cost over value and the net unrealized appreciation from investments were $81,182,573, $110,166,307, $(2,393,973) and $107,772,334, respectively.
 
Other information regarding the Fund is available in the Fund’s most recent Report to Shareholders. This information is available on the website of the Securities and Exchange Commission at www.sec.gov.

Recent Events - Effective March 29, 2010, the Board of Directors announced the approved name change of The Chile Fund, Inc. to the Aberdeen Chile Fund, Inc.

Subsequent Events - Effective, April 30, 2010, the Board of Directors announced the commencement of a cash tender offer to purchase up to 2,542,026 shares, representing approximately 25% of the Fund’s outstanding shares, at a price equal to 99% of the Fund’s net asset value (“NAV”) per share determined on the business day immediately following the day the tender offer expires. The offer commenced today, April 30, 2010, and will expire at 11:59 p.m. EST, May 28, 2010, unless the offer is extended.
 
Additional terms and conditions of the tender offer are set forth in the Fund’s tender offer materials. If more than 25% of the Fund’s outstanding shares are tendered and not withdrawn in the offer, the Fund will purchase shares from tendering shareholders on a pro-rated basis.



 
 
 

Item 2: Controls and Procedures
 
 
(a) As of a date within 90 days from the filing date of this report, the principal executive officer and principal financial officer concluded that the registrant’s disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940 (the “Act”)), were effective based on their evaluation of the disclosure controls and procedures required by Rule 30a-3(b) under the Act and Rules 13a-15(b) or 15d-15(b) under the Securities and Exchange Act of 1934.
 
 
(b) There were no changes in the registrant’s internal control over financial reporting (as defined in Rule 30a-3(d) under the Act) that occurred during the registrant’s last fiscal quarter that have materially affected, or are reasonably likely to materially affect, the registrant’s internal control over financial reporting.

Item 3: Exhibits
 
 
1. The certifications of the registrant as required by Rule 30a-2(a) under the Act are exhibits to this report.

 
SIGNATURES

 
Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the Registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

Aberdeen Chile Fund, Inc.


By:          /s/ Christian Pittard__________
Christian Pittard,
President of
Aberdeen Chile Fund, Inc.

Date: May 25, 2010

Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed below by the following persons on behalf of the Registrant and
in the capacities and on the dates indicated.


By:           /s/ Christian Pittard__________
Christian Pittard,
President of
Aberdeen Chile Fund, Inc.

                Date: May 25, 2010


By:          /s/ Andrea Melia__________
Andrea Melia,
Treasurer of
Aberdeen Chile Fund, Inc.

Date: May 25, 2010