etf13110.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:
  
811-08076
   
Exact name of registrant as specified in charter:
  
Aberdeen Emerging Markets Telecommunications 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:
  
October 31
   
Date of reporting period:
  
1/31/10

 
 
 


Item 1: Schedule of Investments

 
 
 


Aberdeen Emerging Markets Telecommunications Fund, Inc.
 
Schedule of Investments
 
January 31, 2010 (unaudited)
 

Description
  
No. of
Shares
    
Value
  
spacer
  
EQUITY OR EQUITY-LINKED SECURITIES-99.6%
  
Equity or Equity-Linked Securities of Telecommunication Companies in Emerging Countries-99.1%
  
   
Asia-0.4%
  
   
   
Venture Capital-0.4%
  
   
TVG Asian Communications Fund II, L.P. #†‡
  
(Cost $886,646)
     3,622,118 *   $ 599,276  
                 
   
Chile-3.2%
  
   
   
Diversified Telecommunication Services-3.2%
  
   
Empresa Nacional de Telecomunicaciones S.A.
  
(Cost $4,214,099)
     335,132       4,828,200  
                 
   
China-12.4%
  
   
   
Wireless Telecommunication Services-12.4%
  
   
China Mobile Ltd. ^^ 
     1,880,172       17,671,246  
China Mobile Ltd., ADR
     23,920       1,123,044  
              18,794,290  
                 
Total China
  
(Cost $23,550,968)
       18,794,290  
   
   
Croatia-2.8%
  
   
   
Diversified Telecommunication Services-2.8%
  
   
Hrvatske Telekomunikacije dd ^^
  
(Cost $4,098,085)
     74,400       4,215,642  
                 
   
Hungary-1.7%
  
   
   
Diversified Telecommunication Services-1.7%
  
   
Magyar Telekom Telecommunications PLC ^^
  
(Cost $3,048,738)
     723,000       2,611,247  
                 
   
India-8.7%
  
   
   
Wireless Telecommunication Services-8.7%
  
   
Bharti Airtel Ltd. ^^
  
(Cost $16,758,085)
     1,989,920       13,157,030  
                 
   
Indonesia-8.1%
  
   
   
Diversified Telecommunication Services-5.0%
  
   
PT Telekomunikasi Indonesia Tbk^^
     7,699,954       7,645,719  
                 
   
Wireless Telecommunication Services-3.1%
  
   
PT Indosat Tbk^^ 
     7,756,356       4,627,474  
                 
Total Indonesia
  
(Cost $10,036,060)
       12,273,193  
   
   
Israel-7.6%
  
   
   
Diversified Telecommunication Services-5.3%
  
   
Bezeq Israeli Telecommunication Corp. Ltd.^^
     3,132,772       8,025,712  
                 
   
Taiwan-8.3%
  
   
   
Wireless Telecommunication Services-8.3%
  
   
Taiwan Mobile Co., Ltd. ^^
  
(Cost $10,568,932)
     6,538,340     $ 12,632,263  
                 
   
Thailand-4.3%
  
   
   
Wireless Telecommunication Services-4.3%
  
   
Advanced Info Service Public Co., Ltd.
  
(Cost $7,102,902)
     2,596,765       6,473,333  
                 
   
Global-1.0%
  
   
   
Venture Capital-1.0%
  
   
Emerging Markets Ventures I, L.P. #†‡
     7,248,829 *     784,396  
Telesoft Partners II QP, L.P.#†‡
     2,280,000 *     821,142  
                 
Total Global
  
(Cost $3,956,357)
       1,605,538  
   
                 
Total Emerging Countries
  
(Cost $148,108,115)
       150,502,756  
                 
Equity Securities of Telecommunication Companies in Developed Countries-0.5%
  
   
United States-0.5%
  
   
   
Internet Software & Services-0.0%
  
   
NetFlix, Inc.† 
     881       54,842  
                 
   
Venture Capital-0.5%
  
   
Technology Crossover Ventures IV, L.P.#†‡
     1,948,200 *     701,709  
                 
Total United States
  
(Cost $613,409)
       756,551  
Equity Securities of Companies Providing Other Essential Services in the Development of an Emerging Country's Infrastructure-0.0%
  
   
Argentina-0.0%
  
   
   
Venture Capital-0.0%
  
   
Exxel Capital Partners V, L.P. †‡
  
(Cost $380,481)
     1,897,761 *     0  
                 
                 
   
Total Equity or Equity-Linked Securities-99.6%
  
(Cost $149,102,005)
       151,259,307  
                 
                 
   
Principal
Amount (000's)
          
                 
SHORT-TERM INVESTMENT-0.0%
  
   
United Kingdom-0.0%
  
   
Citibank London, overnight deposit, 0.03%, 02/01/10
                
(Cost $45,000)
   $ 45       45,000  
                 
Total Investments-99.6%
  
(Cost $149,147,005) 
       151,304,307  
   
Cash and Other Assets, less Liabilities-0.4%
       579,827  
   
NET ASSETS-100.0%
     $ 151,884,134  
   
   

  †  
Non-income producing security.
  ‡  
Restricted security, not readily marketable.
^^
  
Security was fair valued as of January 31, 2010. Security is 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.
  #  
As of January 31, 2010, the aggregate amount of open commitments for the Fund is $2,718,090.
  *  
Represents contributed capital.
ADR
  
American Depositary Receipts.
  

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.

Restricted Securities - Certain of the Fund’s investments are restricted as to resale and 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 in the absence of readily ascertainable market values.

 
                                   
Security
  
Acquisition Date(s)
  
Cost
    
Fair Value At 01/31/10
    
Percent of Net Assets
    
Distributions Received
    
Open Commitments
  
BPA Israel Ventures LLC
  
10/05/00 - 12/09/05
  
$
1,160,483
    
$
525,842
      
0.35
    
$
97,293
    
$
625,413
  
                                             
Concord Ventures Fund II, L.P
  
03/29/00 - 12/15/06
    
2,633,194
      
687,852
      
0.45
      
258,608
      
-
  
                                             
Emerging Markets Ventures I, L.P.
  
01/22/98 - 01/10/06
    
2,790,776
      
784,396
      
0.52
      
7,129,731
      
851,172
  
                                             
Exxel Capital Partners V, L.P.
  
05/11/98 - 12/03/98
    
380,481
      
0
      
0.00
      
205,185
      
-
  
                                             
Giza GE Venture Fund III, L.P.
  
01/31/00 - 11/23/06
    
1,812,299
      
591,415
      
0.39
      
724,175
      
-
  
                                             
JPMorgan Latin America Capital Partners L.P.
  
04/10/00 - 03/20/08
    
666,719
      
298,604
      
0.20
      
2,290,424
      
502,195
  
                                             
K.T. Concord Venture Fund L.P.
  
12/08/97 - 09/29/00
    
1,260,856
      
94,652
      
0.06
      
1,320,492
      
-
  
                                             
Neurone Ventures II, L.P.
  
11/24/00 - 02/24/09
    
193,007
      
193,386
      
0.13
      
297,649
      
63,816
  
                                             
SVE Star Ventures Enterprises GmbH & Co. No. IX KG
  
12/21/00 - 08/12/08
    
1,624,685
      
631,504
      
0.42
      
380,279
      
-
  
                                             
Technology Crossover Ventures IV, L.P.
  
03/08/00 - 03/30/09
    
612,167
      
701,709
      
0.46
      
1,624,258
      
51,800
  
                                             
Telesoft Partners II QP, L.P.
  
07/14/00 - 06/12/08
    
1,165,581
      
821,142
      
0.54
      
1,109,561
      
120,000
  
                                             
TVG Asian Communications Fund II, L.P.
  
06/07/00 - 10/27/05
    
886,646
      
599,276
      
0.39
      
3,514,709
      
377,882
  
                                             
Walden-Israel Ventures III, L.P.
  
02/23/01 - 12/23/09
    
856,166
      
749,395
      
0.49
      
942,976
      
125,812
  
                                             
Total
      
$
16,043,060
    
$
6,679,173
      
4.40
    
$
19,895,340
    
$
2,718,090
  

 
 
 


 
The Fund may incur certain costs in connection with the disposition of the above securities.
 
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.  At this time the Fund's management is in the process of reviewing ASU 2010-06 to determine future applicability.
 
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 January 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 01/31/2010
  
Diversified Telecommunication Services
   $ 4,828,200     $ 38,808,077     $ -     $ 43,636,277  
Internet Software & Services
     54,842       -       -       54,842  
Venture Capital
     -       -       6,679,173       6,679,173  
Wireless Telecommunication Services
     27,400,714       73,488,301       -       100,889,015  
Short-Term Investments
     -       45,000       -       45,000  
Total
   $ 32,283,756     $ 112,341,378     $ 6,679,173     $ 151,304,307  


Following is a reconciliation of investments in which significant unobservable inputs (Level 3) were used in determining value:

 Investments, at value
  
Balance as of 10/31/2009
    
Accrued discounts/ premiums
    
Realized gain/(loss)
    
Change in unrealized appreciation/
(depreciation)
    
Net purchases (sales)
    
Net transfers in and/or out of Level 3
    
Balance as of 01/31/2010
  
Venture Capital
   $ 6,768,368     $ -     $ (173,327 )   $ (27,204 )   $ 111,336     $ -     $ 6,679,173  
Total
   $ 6,768,368     $ -     $ (173,327 )   $ (27,204 )   $ 111,336     $ -     $ 6,679,173  

 
Federal Income Tax Cost - At January 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 $149,147,005, $22,789,084, $(20,631,782) and $2,157,302, respectively.
 
Other information regarding the Fund is available in the Fund’s most recent Report to Shareholders. This information is also available on the website of the Securities and Exchange Commission at www.sec.gov.
 
Subsequent Events -  Effective March 29, 2010, the Board of Directors announced the approved name change of The Emerging Markets Telecommunications Fund, Inc. to the Aberdeen Emerging Markets Telecommunications Fund, Inc.

 
 
 
 

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.
 
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 Emerging Markets Telecommunications Fund, Inc.


By:          /s/ Christian Pittard__________
Christian Pittard,
President of
Aberdeen Emerging Markets Telecommunications Fund, Inc.

Date: March 30, 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 Emerging Markets Telecommunications Fund, Inc.

                Date: March 30, 2010


By:          /s/ Andrea Melia__________
Andrea Melia,
Treasurer of
Aberdeen Emerging Markets Telecommunications Fund, Inc.

Date: March 30, 2010