etf_nq.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:
  
7/31/10














Item 1: Schedule of Investments
 

 
 
 
Portfolio of Investments
July 31, 2010 (unaudited)




       
No. of Shares
  
Description
Value
spacer
EQUITY OR EQUITY-LINKED SECURITIES-97.8%
EQUITY OR EQUITY-LINKED SECURITIES OF TELECOMMUNICATION COMPANIES IN EMERGING COUNTRIES-76.9%
 
ASIA-0.4%
 
VENTURE CAPITAL-0.4%
 
3,622,118(a)
  
TVG Asian Communications Fund II, L.P.(b)(c)(d) (cost $886,646)
$ 558,850 
       
 
CHILE-3.0%
 
DIVERSIFIED TELECOMMUNICATION SERVICES-3.0%
 
335,132
  
Empresa Nacional de Telecomunicaciones S.A. (cost $4,214,099)
  4,784,389 
       
 
CHINA-12.9%
 
WIRELESS TELECOMMUNICATION SERVICES-12.9%
 
1,880,172
  
China Mobile Ltd.(e)
  19,148,110 
23,920
  
China Mobile Ltd., ADR
  1,218,485 
   
   
Total China (cost $23,550,968)
  20,366,595 
 
 
CROATIA-2.2%
 
DIVERSIFIED TELECOMMUNICATION SERVICES-2.2%
 
74,400
  
Hrvatske Telekomunikacije dd(e) (cost $4,098,085)
  3,470,095 
       
 
INDIA-8.4%
 
WIRELESS TELECOMMUNICATION SERVICES-8.4%
 
1,989,920
  
Bharti Airtel Ltd.(e) (cost $16,758,085)
  13,251,733 
       
 
INDONESIA-7.2%
 
DIVERSIFIED TELECOMMUNICATION SERVICES-4.6%
 
7,699,954
  
PT Telekomunikasi Indonesia Tbk(e)
  7,263,180 
   
 
WIRELESS TELECOMMUNICATION SERVICES-2.6%
 
7,756,356
  
PT Indosat Tbk(e)
  4,211,643 
   
   
Total Indonesia (cost $10,036,060)
  11,474,823 
 
 
KENYA-3.5%
 
WIRELESS TELECOMMUNICATION SERVICES-3.5%
 
74,992,400
  
Safaricom Ltd.(e) (cost $4,022,722)
  5,562,922 
       
 
LATIN AMERICA-0.2%
 
VENTURE CAPITAL-0.2%
 
2,286,227(a)
  
JPMorgan Latin America Capital Partners L.P.(b)(c)(d) (cost $666,719)
  292,774 
       
 
MEXICO-9.9%
 
WIRELESS TELECOMMUNICATION SERVICES-9.9%
 
317,498
  
América Móvil S.A.B. de C.V., Series L, ADR(e) (cost $5,895,099)
  15,751,076 
       
 
MOROCCO-2.1%
 
DIVERSIFIED TELECOMMUNICATION SERVICES-2.1%
 
186,000
  
Maroc Telecom(e) (cost $3,402,454)
  3,316,252 
       
 
RUSSIA-9.0%
 
DIVERSIFIED TELECOMMUNICATION SERVICES-3.9%
 
374,759
  
VimpelCom Ltd., ADR
  6,112,319 
   
 
WIRELESS TELECOMMUNICATION SERVICES-5.1%
 
1,007,000
  
Mobile Telesystems OJSC
  8,159,771 
   
   
Total Russia (cost $10,014,268)
  14,272,090 
 
 
SOUTH AFRICA-4.0%
 
WIRELESS TELECOMMUNICATION SERVICES-4.0%
 
398,791
  
MTN Group Ltd.(e) (cost $5,066,586)
 6,381,903 
       
 
TAIWAN-8.2%
 
WIRELESS TELECOMMUNICATION SERVICES-8.2%
 
6,538,340
  
Taiwan Mobile Co., Ltd.(e) (cost $10,568,932)
  12,931,144 
       
 
THAILAND-4.9%
 
WIRELESS TELECOMMUNICATION SERVICES-4.9%
 
2,696,765
  
Advanced Info Service Public Co., Ltd.(e) (cost $7,333,876)
  7,812,472 
       
 
GLOBAL-1.0%
 
VENTURE CAPITAL-1.0%
 
 7,248,829(a)
  
Emerging Markets Ventures I, L.P.(b)(c)(d)
  759,532 
2,400,000(a)
  
Telesoft Partners II QP, L.P.(b)(c)
  840,384 
       
   
Total Global (cost $4,076,357)
  1,599,916 
 
   
Total Emerging Countries (cost $110,590,956)
  121,827,034 
   
EQUITY SECURITIES OF TELECOMMUNICATION COMPANIES IN DEVELOPED COUNTRIES-20.9%
 
ISRAEL-6.2%
 
 
DIVERSIFIED TELECOMMUNICATION SERVICES-4.3%
 
3,132,772
  
Bezeq Israeli Telecommunication Corp. Ltd.(e)
  6,898,436 
 
VENTURE CAPITAL-1.9%
 
1,674,587(a)
  
BPA Israel Ventures LLC(b)(c)(d)
  471,334 
4,000,000(a)
  
Concord Ventures Fund II, L.P.(b)(c)
  592,168 
2,750,000(a)
  
Giza GE Venture Fund III L.P.(b)(c)
  554,923 
2,000,000(a)
  
K.T. Concord Venture Fund L.P.(b)(c)
  91,182 
686,184(a)
  
Neurone Ventures II, L.P.(b)(c)(d)
  179,972 
2,001,470(a)
  
SVE Star Ventures Enterprises GmbH & Co. No. IX KG(b)(c)
  498,646 
1,345,438(a)
  
Walden-Israel Ventures III, L.P.(b)(c)(d)
  598,168 
     
  2,986,393 
   
Total Israel (cost $15,719,273)
  9,884,829 
 
MALAYSIA-5.4%
 
 
WIRELESS TELECOMMUNICATION SERVICES-5.4%
 
1,100,000
  
Digi.Com BHD(e) (cost $6,798,740) 
  8,544,094 
       
 
PORTUGAL-4.3%
 
 
DIVERSIFIED TELECOMMUNICATION SERVICES-4.3%
 
624,000
  
Portugal Telecom SGPS S.A.(e) (cost $6,462,769) 
  6,863,774 
       
 
SINGAPORE-4.4%
 
 
DIVERSIFIED TELECOMMUNICATION SERVICES-4.4%
 
3,030,000
  
Singapore Telecommunications Ltd.(e) (cost $6,711,795) 
  6,965,625 
       
 
UNITED STATES-0.6%
 
 
INTERNET SOFTWARE & SERVICES-0.1%
 
2,485
  
NetFlix, Inc.
  254,837 
 
VENTURE CAPITAL-0.5%
 
1,948,200(a)
  
Technology Crossover Ventures IV, L.P.(b)(c)(d)
  778,785 
   
Total United States (cost $692,069)
  1,033,622 
   
Total Developed Countries (cost $36,384,646)
  33,291,944 
   
 EQUITY SECURITIES OF COMPANIES PROVIDING OTHER ESSENTIAL SERVICES IN THE DEVELOPMENT OF AN EMERGING COUNTRIES INFRASTRUCTURE-0.0%  
 
ARGENTINA-0.0%
 
 
VENTURE CAPITAL-0.0%
 
1,897,761(a)
  
Exxel Capital Partners V, L.P.(b)(c) (cost $380,481) 
0 
       
 
   
Total Equity or Equity-Linked Securities-97.8% (cost $147,356,083)
  155,118,978 
   
SHORT-TERM INVESTMENT-2.2%
  
   
Principal
      
Amount (000's)
      
 
 
BAHAMAS-2.2%
 
$3,421
  
Citibank Nassau, overnight deposit, 0.03%, 08/02/10 (cost $3,421,000)
  3,421,000 
       
   
Total Investments-100.0% (cost $150,777,083)   
  158,539,978 
 
   
Cash and Other Assets, less Liabilities-0.0%
  24,786 
 
   
Net Assets-100.0%
$ 158,564,764 
 



 
(a) Represents contributed capital.
 
(b) Restricted security, not readily marketable.
 
(c) Non-income producing security.
 
(d) As of July 31, 2010, the aggregate amount of open commitments for the Fund is $2,598,090.
 
(e) Security was fair valued as of July 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.
 
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 07/31/10
Percent of Net Assets
Distributions Received
Open Commitments
     
 
      
 
  
 
  
 
BPA Israel Ventures LLC
   10/05/00 - 12/09/05  
$    1,160,483 
      $        471,334    0.30   $               97,293       $                    625,413
   
 
 
  
 
  
 
  
              
  
 
Concord Ventures Fund II, L.P.
  
03/29/00 - 12/15/06
    2,633,194     592,168    0.37       332,340     -
   
 
 
  
 
  
 
  
            
  
 
Emerging Markets Ventures I, L.P.
  
01/22/98 - 01/10/06
    2,790,776     759,532  
0.48
      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     554,923  
0.35
      724,175     -
                         
JPMorgan Latin America Capital Partners L.P.
04/10/00 - 03/20/08
666,719
  
292,774
  
0.18
  
             2,290,424
  
502,195
   
 
 
  
 
  
 
  
            
  
 
K.T. Concord Venture Fund L.P.
  
12/08/97 - 09/29/00
     1,260,856     91,182  
0.06
      1,320,492     -
                         
Neurone Ventures II, L.P.
  
11/24/00 - 02/24/09
193,007
  
179,972
  
0.11
  
                297,649
  
63,816
                         
SVE Star Ventures Enterprises GmbH & Co. No. IX KG
12/21/00 - 08/12/08
1,624,685
  
498,646
  
0.32
  
380,279
  
-
                         
Technology Crossover Ventures IV, L.P.
  
03/08/00 - 03/30/09
576,221
  
778,785
  
0.49
  
             1,715,080
  
51,800
                         
Telesoft Partners II QP, L.P.
  
07/14/00 - 03/01/10
1,285,581
  
840,384
  
0.53
  
             1,109,561
  
-
   
 
 
  
 
  
 
  
             
  
 
TVG Asian Communications Fund II, L.P.
  
06/07/00 - 10/27/05
    886,646    558,850  
0.35
     3,514,709     377,882
                         
Walden-Israel Ventures III, L.P.
  
02/23/01 - 09/18/08
856,166
  
598,168
  
0.38
  
942,976
  
125,812
                         
Total
      
 $  16,127,114
  
 $     6,216,718
  
3.92
  
 $        20,059,894
  
 $                 2,598,090
 
The Fund may incur certain costs in connection with the disposition of the above securities.

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, information provided by the General Partner or investee companies such as publicly traded prices, financial statements, capital statements, recent transactions, and general market conditions.)

 
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 July 31, 2010 in valuing the Fund's investments carried at value: 
                 
Investments, at value
  
Level 1*
  
Level 2*
  
Level 3*
  
Balance as of 07/31/2010
Diversified Telecommunication Services
  
$ 10,896,708 
  
$ 34,777,362 
  
$ – 
  
$ 45,674,070 
Internet Software & Services
  
  254,837 
  
  – 
  
  – 
  
  254,837 
Venture Capital
  
  – 
  
  – 
  
  6,216,718 
  
  6,216,718 
Wireless Telecommunication Services
  
  24,782,033 
  
  78,191,320 
  
  – 
  
  102,973,353 
Short-Term Investments
  
  – 
  
  3,421,000 
  
  – 
  
  3,421,000 
Total
  
$ 35,933,578 
  
$ 116,389,682 
  
$ 6,216,718 
  
$ 158,539,978 
 
 
* At July 31, 2010 , there were no significant transfers in or out of Level 1, Level 2 and Level 3 fair value measurements.
 
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 07/31/2010
Venture Capital
$6,768,368
$-
$(173,327)
$(609,659)
$231,336
$-
$6,216,718
Total
$6,768,368
$-
$(173,327)
$(609,659)
$231,336
$-
$6,216,718

 
For the period ended July 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 July 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 $150,777,083, $27,792,309, $(20,029,414) and $7,762,895, 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 - On September 1, 2010, the Fund announced that the Fund’s Board of Directors had approved changes to certain non-fundamental investment policies of the Fund. As a result of these policy changes, effective November 1, 2010, the Fund will emphasize both emerging markets telecommunications and infrastructure equity and debt securities. The approved changes will not alter the Fund’s investment objective of seeking long-term capital appreciation. In connection with these changes in non-fundamental investment policies, the Fund will undergo a name change effective November 1, 2010 to reflect its new portfolio characteristics. The new name of the Fund will be Aberdeen Emerging Markets Telecommunications and Infrastructure 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: September 28, 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: September 28, 2010


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

Date: September 28, 2010