Semi-Annual Report by Investment Company (Form N-CSRS)
SECURITIES AND EXCHANGE COMMISSION
FORM N-CSR
CERTIFIED SHAREHOLDER REPORT OF REGISTERED
MANAGEMENT INVESTMENT COMPANIES
Investment Company Act file number: 811-04058
(Exact name of registrant as specified in charter)
60 Victoria Embankment,
(Address of principal executive offices) (Zip code)
c/o
Chief Legal Officer,
JPMorgan,
(
Registrant's telephone number, including area code: +44 207 742 3436
Date of fiscal year end:
Date of reporting period:
Beginning on
If you already elected to receive shareholder reports electronically, you will not be affected by this change and you need not take any action. You may elect to receive shareholder reports and other communications from the Fund electronically anytime by contacting your financial intermediary (such as a broker-dealer or bank) or, if you are a direct investor, by calling the Fund's stockholder servicing agent at (866) 706-0510.
If you prefer to receive paper copies of your shareholder reports after
Semi-Annual Report
This report contains the following two documents:
| • | Chairman's Letter to Stockholders |
| • | Semi-Annual Report to Stockholders- |
Dear fellow Stockholders
We have pleasure in providing the Interim Report for
The Period to date, I regret to report, has not been encouraging from the point of view of investors. The Period's start-date coincided with a peak in the stock market following some 18 months of recovery after the sharp decline in prices commencing early in 2021. To recap market movements briefly, the Korean stock market declined some 30% from early in 2021 to virtually the end of calendar 2022 before recovering some 25% between end-2022 and
Through the Period market sentiment was badly damaged by both domestic and international events. On the domestic front, a still pending decision by the
For the Period the South Korean stock market, as reflected by your Fund's benchmark index, the MSCI Korea 25/50, declined 20.80% in US dollars whilst your Fund returned a negative 22.73%, again in US dollars. Disappointingly this result places the Fund in the 4th quartile of the Korean oriented peer group maintained by your board's independent investment consultant. However, it is encouraging to note that since the end of the Period to the date of this report your Fund's NAV has increased by 15.24% which represents a 1.71% outperformance of the benchmark.
The report of your investment adviser
Expenses
Of continuing significant interest to, and consumption of time of your board is the level of expenses incurred by the Fund. Whilst every effort has been taken to maintain such expenses at the lowest, constructive level and which, incidentally, have seen a decline in absolute terms over recent years, the continuing erosion of assets under management - due to a declining stock market, have worked against the total expense ratio ("TER"). As at the Period end, the TER is forecast at 176 basis points.
Share Price Discount to Net Asset Value.
As much due to the above-mentioned market malaise, the Fund's share price has continued to trade at a significant discount relative to its Net Asset Value ("NAV") and at a level greater than is considered acceptable by your board. Through the Period the discount has ranged from -8.5% to -19.2%. Your board continues to utilise market buy backs in an endeavour to reduce such discounts for the benefit of stockholders.
We thank you for your continued support through these difficult trading conditions for your Fund.
Yours very sincerely
For and On Behalf of
Semi-Annual Report
Market Overview
Overview
In the six months to
The third quarter saw the index and KRW weaken on a slowing domestic economy amid lacklustre export momentum on key products including auto and memory chips. The fall was exacerbated in the fourth quarter on the back of uncertainties on
During the six months period, healthcare was the only sector generating positive returns given increased preference to more defensive positions as well as being beneficiaries of lower rates. On the other hand,
Fund's Performance
From
|
12.31.24 | |
1 |
Performance Attribution Review
Over the six-month review period the portfolio's underperformance was due to sector allocation, while stock selection added some value.
At the sector level, being underweight in the industrials sector and overweight in the IT sector detracted the most value. The portfolio was also overweight in the financial sector which added value.
At a stock level, the top detractors were
Top contributors were
Market Outlook
The KOSPI index continues to experience headwinds driven by a number of factors. These include the lacklustre performance of
| 2 |
| 12.31.24 |
the Korean equity market due to: 1) HBM for AI led memory cycle; 2) continued global competitiveness of manufactured goods; 3) increasing demand for better corporate governance catalyzed by the Value-Up program; and 4) expectations for normalization of domestic demand in 2H25. We also anticipate that a new government will be formed in the middle of 2025, given the clarity of case against Yoon. The market expects the next government to be led by the Democratic Party which tends to favor expansionary fiscal policy and better relationships with
|
12.31.24 | |
3 |
| Total Return(1) | 6 Months | 1 Year | 5 Year | 10 Year | ||||||||||||
|
Market Price |
(21.71 | )% | (19.27 | )% | (1.19 | )% | 1.19 | % | ||||||||
|
Net Asset Value ("NAV") |
(22.73 | )% | (21.59 | )% | (1.81 | )% | 0.86 | % | ||||||||
|
MSCI Korea 25/50 Index (Total Return)(2) |
(20.80 | )% | (19.88 | )% | (1.58 | )% | 1.61 | % | ||||||||
|
MSCI Korea Index (Total Return)(2) |
(23.73 | )% | (23.40 | )% | (2.46 | )% | 1.62 | % | ||||||||
Fund Performance Line Graph(1)
Premium (Discount) to NAV
Industry Breakdown (as a % of net assets):
| Market Price/NAV: | ||||
|
Market Price |
||||
|
NAV(3) |
||||
|
Discount to NAV |
15.36 | % | ||
| Ten |
||||||
| 1. | 22.0 | % | ||||
| 2. | 9.3 | |||||
| 3. | 4.9 | |||||
| 4. | 4.8 | |||||
| 5. | 4.2 | |||||
| 6. | 3.0 | |||||
| 7. | 2.9 | |||||
| 8. | 2.9 | |||||
| 9. | 2.7 | |||||
| 10. | 2.4 | |||||
| 4 |
| 12.31.24 |
Notes to Performance & Statistics:
| (1) | Past performance is no guarantee of future results. Total retuis calculated by determining the percentage change in NAV or market price (as applicable) in the specified period. The calculation assumes that all dividends and distributions, if any, have been reinvested. Total retudoes not reflect broker commissions or sales charges in connection with the purchase or sale of Fund shares. Total retudoes not reflect the deduction of taxes that a shareholder may pay on the receipt of distributions made by the Fund or on the proceeds of any sales of the Fund's shares made by a shareholder. Total retufor a period of more than one year represents the average annual total return. |
| Performance at market price will differ from results at NAV. Although market price returns typically reflect investment results over time, during shorter periods returns at market price can also be influenced by factors such as changing views about the Fund, market conditions, supply and demand for the Fund's shares, or changes in the Fund's dividends. |
| An investment in the Fund involves risk, including the loss of principal. Total return, market price and NAV will fluctuate with changes in market conditions. This data is provided for information purposes only and is not intended for trading purposes. Closed-end funds, unlike open-end funds, are not continuously offered. There is a one-time public offering and once issued, shares of closed-end funds are traded in the open market through a stock exchange. NAV is equal to total assets less total liabilities divided by the number of shares outstanding. Holdings are subject to change daily. |
| (2) |
| (3) | The NAV disclosed in the Fund's financial statements may differ from this NAV due to accounting principles generally accepted in |
|
12.31.24 | |
5 |
As of
| Shares | Investments | Value | ||||||
|
COMMON STOCKS-99.2% |
||||||||
| Aerospace & Defense-1.5% | ||||||||
| 36,850 |
|
$ 1,369,413 | ||||||
| Automobile Components-1.7% | ||||||||
| 9,700 |
|
1,542,656 | ||||||
| Automobiles-6.3% | ||||||||
| 6,500 |
|
922,810 | ||||||
| 20,700 |
|
2,172,205 | ||||||
| 39,500 |
|
2,672,948 | ||||||
| 5,767,963 | ||||||||
| Banks-10.7% | ||||||||
| 135,500 |
|
946,565 | ||||||
| 113,500 |
|
4,342,883 | ||||||
| 46,000 |
|
649,944 | ||||||
| 117,620 |
|
3,814,043 | ||||||
| 9,753,435 | ||||||||
| Biotechnology-1.3% | ||||||||
| 29,446 |
|
319,706 | ||||||
| 4,800 |
|
906,227 | ||||||
| 1,225,933 | ||||||||
| Capital Markets-2.4% | ||||||||
| 21,900 |
|
1,050,152 | ||||||
| 37,700 |
|
1,102,315 | ||||||
| 2,152,467 | ||||||||
| Chemicals-6.1% | ||||||||
| 44,700 |
|
450,070 | ||||||
| 11,290 |
|
733,315 | ||||||
| 19,000 |
|
1,163,541 | ||||||
| 16,400 |
|
2,747,522 | ||||||
| 4,320 |
|
477,337 | ||||||
| 5,571,785 | ||||||||
| Consumer Staples Distribution & Retail-0.8% | ||||||||
| 10,500 |
|
726,112 | ||||||
| 106,510 |
|
1,252,232 | ||||||
| 4,800 |
|
453,490 | ||||||
| 18,650 |
|
215,492 | ||||||
| 39,700 |
|
567,578 | ||||||
| 2,488,792 | ||||||||
| Electronic Equipment, Instruments & Components-4.7% | ||||||||
| 15,400 |
|
1,277,320 | ||||||
| 15,000 |
|
2,479,333 | ||||||
| 42,162 |
|
546,693 | ||||||
| 4,303,346 | ||||||||
| Entertainment-2.0% | ||||||||
| 12,844 |
|
548,615 | ||||||
| 24,700 |
|
1,258,183 | ||||||
| 1,806,798 | ||||||||
| Financial Services-0.6% | ||||||||
| 106,000 |
|
506,614 | ||||||
| 6 |
| 12.31.24 |
As of
| Shares | Investments | Value | ||||||
| 4,500 |
|
$ 775,038 | ||||||
| Health Care Equipment & Supplies-0.6% | ||||||||
| 20,437 |
|
556,074 | ||||||
| Industrial Conglomerates-1.1% | ||||||||
| 11,300 |
|
1,003,055 | ||||||
| Insurance-1.9% | ||||||||
| 10,000 |
|
694,803 | ||||||
| 16,300 |
|
1,043,055 | ||||||
| 1,737,858 | ||||||||
| 33,700 |
|
4,496,592 | ||||||
| 13,500 |
|
827,474 | ||||||
| 5,324,066 | ||||||||
| Life Sciences Tools & Services-3.8% | ||||||||
| 12,200 |
|
892,116 | ||||||
| 4,050 |
|
2,595,110 | ||||||
| 3,487,226 | ||||||||
| Machinery-3.0% | ||||||||
| 50,200 |
|
1,260,737 | ||||||
| 32,864 |
|
558,691 | ||||||
| 113,300 |
|
864,426 | ||||||
| 2,683,854 | ||||||||
| Oil, |
||||||||
| 50,000 |
|
1,867,055 | ||||||
| 62,000 |
|
943,359 | ||||||
| 10,000 |
|
1,005,457 | ||||||
| Pharmaceuticals-1.8% | ||||||||
| 5,140 |
|
972,008 | ||||||
| 27,600 |
|
668,248 | ||||||
| 1,640,256 | ||||||||
| Semiconductors & |
||||||||
| 37,150 |
|
778,311 | ||||||
| 29,700 |
|
466,366 | ||||||
| 73,700 |
|
8,445,307 | ||||||
| 9,689,984 | ||||||||
| Specialty Retail-0.7% | ||||||||
| 74,050 |
|
641,716 | ||||||
| Technology Hardware, Storage & Peripherals-23.8% | ||||||||
| 561,200 |
|
20,027,439 | ||||||
| 54,200 |
|
1,609,847 | ||||||
| 21,637,286 | ||||||||
|
Total Common Stocks (Cost |
90,207,598 | |||||||
|
Total Investments-99.2% (Cost |
90,207,598 | |||||||
|
Other Assets Less Liabilities-0.8% |
720,394 | |||||||
| Net Assets-100.0% | ||||||||
|
12.31.24 | |
7 |
As of
Percentages indicated are based on net assets.
| Preference | A special type of equity investment that shares in the earnings of the company, has limited voting rights, and may have a dividend preference. Preference shares may also have liquidation preference. | |
| (a) | Security exempt from registration pursuant to Regulation S under the Securities Act of 1933, as amended. Regulation S applies to securities offerings that are made outside of |
|
| * | Non-income producing security. |
| Level 1 Quoted prices |
Level 2 Other significant observable inputs |
Level 3 Significant unobservable inputs |
Total | |||||||||||||
| Investments in Securities | ||||||||||||||||
|
Common Stocks |
||||||||||||||||
|
Aerospace & Defense |
$ | - | $ | 1,369,413 | $ | - | $ | 1,369,413 | ||||||||
|
Automobile Components |
- | 1,542,656 | - | 1,542,656 | ||||||||||||
|
Automobiles |
- | 5,767,963 | - | 5,767,963 | ||||||||||||
|
Banks |
- | 9,753,435 | - | 9,753,435 | ||||||||||||
|
Biotechnology |
- | 1,225,933 | - | 1,225,933 | ||||||||||||
|
Capital Markets |
- | 2,152,467 | - | 2,152,467 | ||||||||||||
|
Chemicals |
- | 5,571,785 | - | 5,571,785 | ||||||||||||
|
Consumer Staples Distribution & Retail |
- | 726,112 | - | 726,112 | ||||||||||||
|
|
215,492 | 2,273,300 | - | 2,488,792 | ||||||||||||
|
Electronic Equipment, Instruments & Components |
- | 4,303,346 | - | 4,303,346 | ||||||||||||
|
Entertainment |
- | 1,806,798 | - | 1,806,798 | ||||||||||||
|
Financial Services |
- | 506,614 | - | 506,614 | ||||||||||||
|
|
- | 775,038 | - | 775,038 | ||||||||||||
|
Health Care Equipment & Supplies |
- | 556,074 | - | 556,074 | ||||||||||||
|
Industrial Conglomerates |
- | 1,003,055 | - | 1,003,055 | ||||||||||||
|
Insurance |
- | 1,737,858 | - | 1,737,858 | ||||||||||||
|
|
- | 5,324,066 | - | 5,324,066 | ||||||||||||
|
Life Sciences Tools & Services |
- | 3,487,226 | - | 3,487,226 | ||||||||||||
|
Machinery |
- | 2,683,854 | - | 2,683,854 | ||||||||||||
|
Oil, |
- | 1,867,055 | - | 1,867,055 | ||||||||||||
|
|
- | 943,359 | - | 943,359 | ||||||||||||
|
|
- | 1,005,457 | - | 1,005,457 | ||||||||||||
|
Pharmaceuticals |
- | 1,640,256 | - | 1,640,256 | ||||||||||||
|
Semiconductors & |
- | 9,689,984 | - | 9,689,984 | ||||||||||||
|
Specialty Retail |
- | 641,716 | - | 641,716 | ||||||||||||
|
Technology Hardware, Storage & Peripherals |
- | 21,637,286 | - | 21,637,286 | ||||||||||||
|
Total Common Stocks |
$ | 215,492 | $ | 89,992,106 | $ | - | $ | 90,207,598 | ||||||||
|
Total Investments in Securities |
$ | 215,492 | $ | 89,992,106 | $ | - | $ | 90,207,598 | ||||||||
| 8 | | 12.31.24 | | See Notes to Financial Statements |
As of
| Assets: | ||||||||
|
Investments, at value |
||||||||
|
Cash |
71,799 | |||||||
|
Foreign currency, at value |
603,864 | |||||||
|
Prepaid expenses and other assets |
90,951 | |||||||
|
Receivables: |
||||||||
|
Investment securities sold |
1,671,400 | |||||||
|
Dividends (net of withholding taxes) |
391,369 | |||||||
|
Total Assets |
93,036,981 | |||||||
| Liabilities: | ||||||||
|
Payables: |
||||||||
|
Distributions to stockholders |
1,895,319 | |||||||
|
Investment securities purchased |
91,628 | |||||||
|
Accrued liabilities: |
||||||||
|
Investment Management fees |
57,942 | |||||||
|
Custodian, administrator and accounting agent fees |
39,087 | |||||||
|
Other |
25,013 | |||||||
|
Total Liabilities |
2,108,989 | |||||||
| Net Assets | ||||||||
| Net Assets: | ||||||||
|
Common Stock: |
||||||||
|
Par value ( |
||||||||
|
Paid-in-capital in excess of par |
105,569,960 | |||||||
|
Total distributable earnings (loss) |
(14,683,689) | |||||||
| Net Assets | ||||||||
| Net Asset Value Per Share | ||||||||
|
Cost of investments |
||||||||
|
Cost of foreign currency |
605,940 | |||||||
| See Notes to Financial Statements | | 12.31.24 | | 9 |
For the Six Months Ended
| Investment Income: | ||||||||
|
Interest income |
||||||||
|
Dividend income |
851,332 | |||||||
|
Foreign taxes withheld (net) |
(142,628) | |||||||
|
Total investment income |
712,892 | |||||||
| Expenses: | ||||||||
|
Management fees (See Note 3) |
418,700 | |||||||
|
Interest expense |
43 | |||||||
|
Legal |
92,347 | |||||||
|
Directors |
125,811 | |||||||
|
Custodian, administrator and accounting agent fees |
113,010 | |||||||
|
Insurance |
53,189 | |||||||
|
Audit and tax services |
46,566 | |||||||
|
Stockholder communications |
38,732 | |||||||
|
Transfer agent |
19,622 | |||||||
|
Other |
16,593 | |||||||
|
Total expenses |
924,613 | |||||||
| Net investment income (loss) | (211,721) | |||||||
| Realized/Unrealized Gains (Losses): | ||||||||
|
Net realized gain (loss) on transactions from: |
||||||||
|
Investments |
4,010,431 | |||||||
|
Foreign currency transactions |
(15,952) | |||||||
|
Net realized gain (loss) |
3,994,479 | |||||||
|
Change in net unrealized appreciation/depreciation on: |
||||||||
|
Investments |
(32,877,804) | |||||||
|
Foreign currency translations |
(12,744) | |||||||
|
Change in net unrealized appreciation/depreciation |
(32,890,548) | |||||||
|
Net realized/unrealized gains (losses) |
(28,896,069) | |||||||
| Change in net assets resulting from operations | ||||||||
| 10 | | 12.31.24 | | See Notes to Financial Statements |
For the Periods Indicated
| Six Months Ended (unaudited) |
Year Ended |
|||||||||||||||
| Change in Net Assets Resulting from Operations: | ||||||||||||||||
|
Net investment income (loss) |
||||||||||||||||
|
Net realized gain / (loss) |
3,994,479 | (3,709,914) | ||||||||||||||
|
Change in net unrealized appreciation/depreciation |
(32,890,548) | 13,781,634 | ||||||||||||||
|
Change in net assets resulting from operations |
(29,107,790) | 10,516,434 | ||||||||||||||
| Distributions to Stockholders: | ||||||||||||||||
|
Distributable earnings |
(1,895,319) | - | ||||||||||||||
| Common Stock Transactions: | ||||||||||||||||
|
Cost of shares repurchased/tendered |
(17,188,829) | (2,114,692) | ||||||||||||||
| Net Assets: | ||||||||||||||||
|
Change in net assets |
(48,191,938) | 8,401,742 | ||||||||||||||
|
Beginning of period |
139,119,930 | 130,718,188 | ||||||||||||||
|
End of period |
||||||||||||||||
| Shares Activity: | ||||||||||||||||
|
Shares outstanding, beginning of year |
4,833,922 | 4,929,184 | ||||||||||||||
|
Shares repurchased/tendered |
(661,774) | (95,262) | ||||||||||||||
|
Shares outstanding, end of year |
4,172,148 | 4,833,922 | ||||||||||||||
| See Notes to Financial Statements | | 12.31.24 | | 11 |
For a share of stock outstanding throughout each period^:
| Six Months Ended 2024 (unaudited) |
Year ended |
|||||||||||||||||||||||||||||||||||||||||||||
| 2024 | 2023 | 2022 | 2021 | 2020 | ||||||||||||||||||||||||||||||||||||||||||
|
Net asset value, beginning of period |
||||||||||||||||||||||||||||||||||||||||||||||
|
Investment Operations: |
||||||||||||||||||||||||||||||||||||||||||||||
|
Net investment income (1) |
(0.05 | ) | 0.09 | 0.19 | 0.32 | 0.21 | 0.16 | |||||||||||||||||||||||||||||||||||||||
|
Net realized and change in unrealized gain (loss) |
(6.60 | ) | 2.08 | 1.06 | (17.05 | ) | 23.58 | (1.85 | ) | |||||||||||||||||||||||||||||||||||||
|
Total from investment operations |
(6.65 | ) | 2.17 | 1.25 | (16.73 | ) | 23.79 | (1.69 | ) | |||||||||||||||||||||||||||||||||||||
|
Dividends and Distributions to Stockholders from: |
||||||||||||||||||||||||||||||||||||||||||||||
|
Net investment income |
(0.45 | ) | - | (0.03 | ) | (2.05 | ) | (0.53 | ) | (0.07 | ) | |||||||||||||||||||||||||||||||||||
|
Net realized gains |
- | - | (3.27 | ) | (7.06 | ) | - | - | ||||||||||||||||||||||||||||||||||||||
|
Retuof capital |
- | - | (0.02 | ) | - | - | - | |||||||||||||||||||||||||||||||||||||||
|
Total dividends and distributions to stockholders |
(0.45 | ) | - | (3.32 | ) | (9.11 | ) | (0.53 | ) | (0.07 | ) | |||||||||||||||||||||||||||||||||||
|
Common Stock Transactions: |
||||||||||||||||||||||||||||||||||||||||||||||
|
Accretion to net asset value resulting from share repurchases and tender offer |
0.11 | 0.09 | 0.05 | 0.01 | 0.02 | 0.07 | ||||||||||||||||||||||||||||||||||||||||
|
Net asset value, end of period |
||||||||||||||||||||||||||||||||||||||||||||||
|
Market price, end of period |
||||||||||||||||||||||||||||||||||||||||||||||
|
Total return: (2) |
||||||||||||||||||||||||||||||||||||||||||||||
|
Net asset value |
(22.73 | )% | 8.52 | % | 5.34 | % | (35.39 | )% | 76.93 | % | (4.96 | )% | ||||||||||||||||||||||||||||||||||
|
Market price |
(21.71 | )% | 4.28 | % | 8.60 | % | (33.55 | )% | 80.66 | % | (10.15 | )% | ||||||||||||||||||||||||||||||||||
|
RATIOS/SUPPLEMENTAL DATA: |
||||||||||||||||||||||||||||||||||||||||||||||
|
Net assets, end of period (000s) |
||||||||||||||||||||||||||||||||||||||||||||||
|
Ratio of expenses to average net assets |
1.55 | %(3) | 1.44 | % | 1.46 | % | 1.21 | % | 1.12 | % | 1.22 | % | ||||||||||||||||||||||||||||||||||
|
Ratio of net investment income to average net assets |
(0.35 | )%(3) | 0.34 | % | 0.70 | % | 0.77 | % | 0.46 | % | 0.52 | % | ||||||||||||||||||||||||||||||||||
|
Portfolio turnover rate |
31 | % | 48 | % | 37 | % | 35 | % | 81 | % | 42 | % | ||||||||||||||||||||||||||||||||||
| ^ | A "-" may reflect actual amounts rounding to less than |
| (1) | Calculated on average common shares outstanding during the period. |
| (2) | Total retuis calculated by subtracting the value of an investment in the Fund at the beginning of the specifiedperiod from the value at the end of the period and dividing the remainder by the value of the investment at the beginning of the period and expressing the result as a percentage. The calculation assumes that all dividends and distributions, if any, have been reinvested. Total retudoes not reflect broker commissions or sales charges in connection with the purchase or sale of Fund shares. Total retudoes not reflect the deduction of taxes that a shareholder may pay on the receipt of distributions made by the Fund or on proceeds of any sales of the Fund's shares made by a shareholder. Total retuon net asset value may reflect adjustments to conform to |
| (3) | Annualized. |
| 12 | | 12.31.24 | | See Notes to Financial Statements |
1. Organization and Significant Accounting Policies
The Fund's investment objective is to seek long-term capital appreciation through investment in securities, primarily equity securities, of Korean companies. There can be no assurance that the Fund will meet its stated objective.
The preparation of the Fund's financial statements in accordance with accounting principles generally accepted in
Like many other companies, the Fund's organizational documents provide that its officers ("Officers") and the Board of Directors of the Fund (the "Board" or the "Directors") are indemnified against certain liabilities arising out of the performance of their duties to the Fund. In addition, both in some of its principal service contracts and in the normal course of its business, the Fund enters into contracts that provide indemnifications to other parties for certain types of losses or liabilities. The Directors' maximum exposure under these arrangements is unknown as this could involve future claims against the Fund.
The following is a summary of significant accounting policies consistently followed by the Fund:
(a) Valuation of Investments
Portfolio securities and other financial instruments for which market quotations are readily available are valued at market value. Market values for various types of securities and other instruments are determined on the basis of closing prices or last sales prices on an exchange or other market, or based on quotes or other market information obtained from quotation reporting systems, established market makers or independent pricing services. For foreign equity securities (with certain exceptions, if any), the Fund fair values its securities daily using modeling tools provided by a statistical research service. This service utilizes statistics and programs based on historical performance of markets and other economic data (which may include changes in the value of
Portfolio securities and other financial instruments for which market quotations are not readily available (including in cases where available market quotations are deemed to be unreliable), are fair valued, in good faith, under Rule 2a-5, 1940 Act, the Manager has been designated as "valuation designee", pursuant to procedures established by the Board, or persons acting at their discretion ("Valuation Committee") pursuant to procedures established by the Board. The Fund's investments are valued daily and the Fund's NAV is calculated as of the close of regular trading (normally
Short-term investments having a remaining maturity of 60 days or less are valued at amortized cost unless the Board or its Valuation Committee determines that particular circumstances dictate otherwise.
Investments initially valued in currencies other than the
The prices used by the Fund to value securities may differ from the value that would be realized if the securities were sold and these differences could be material to the Fund's financial statements.
|
12.31.24 | |
13 |
1. Organization and Significant Accounting Policies (continued)
(b) Fair Value Measurements
Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability (i.e., the "exit price") in an orderly transaction between market participants. The three levels of the fair value hierarchy are described below:
| • | Level 1-unadjusted quoted prices in active markets for identical investments that the Fund has the ability to access |
| • | Level 2-valuations based on other significant observable inputs, which may include, but are not limited to, quoted prices for similar assets or liabilities, interest rates, yield curves, volatilities, prepayment speeds, loss severities, credit risks and default rates or other market corroborated inputs |
| • | Level 3-valuations based on significant unobservable inputs (including the Investment Adviser's or Valuation Committee's own assumptions and securities whose price was determined by using a single broker's quote) |
The valuation techniques used by the Fund to measure fair value during the six months ended
An investment asset's or liability's level within the fair value hierarchy is based on the lowest level input, individually or in aggregate, that is significant to the fair value measurement. The objective of fair value measurement remains the same even when there is a significant decrease in the volume and level of activity for an asset or liability and regardless of the valuation techniques used.
The inputs or methodology used for valuing securities are not necessarily an indication of the risk associated with investing in those securities. The following are certain inputs and techniques that the Fund generally uses to evaluate how to classify each major category of assets and liabilities within Level 2 and Level 3, in accordance with
An asset or liability for which market values cannot be measured using the methodologies described above is valued by methods deemed reasonable in good faith by the Valuation Committee, following the procedures established by the Board, to represent fair value. Under these procedures, the Fund generally uses a market-based approach which may use related or comparable assets or liabilities, recent transactions, market multiples, book values and other relevant information. Fair value determinations involve the consideration of a number of subjective factors, an analysis of applicable facts and circumstances and the exercise of judgment. As a result, it is possible that the fair value for a security determined in good faith in accordance with the Fund's valuation procedures may differ from valuations for the same security determined by other funds using their own valuation procedures. Although the Fund's valuation procedures are designed to value a security at the price the Fund may reasonably expect to receive upon the security's sale in an orderly transaction, there can be no assurance that any fair value determination thereunder would, in fact, approximate the amount that the Fund would actually realize upon the sale of the security or the price at which the security would trade if a reliable market price were readily available.
(c) Investment Transactions and Investment Income
Investment transactions are accounted for on the trade date. Realized gains and losses on investments are determined on an identified cost basis. Interest income on uninvested cash is recorded upon receipt. Dividend income is recorded on the ex-dividend date. Korean-based corporations have generally adopted calendar year-ends, and their interim and final corporate actions are normally approved, finalized and announced by their boards of directors and stockholders in the first and third quarters of each calendar year. Generally, estimates of their dividends are accrued on the ex-dividend date principally in the prior December and/or June period ends. These dividend announcements are recorded by the Fund on such ex-dividend dates. Any subsequent adjustments thereto by Korean corporations are recorded when announced. Presently, dividend income from Korean equity investments is earned primarily in the last calendar quarter of each year, and will be received primarily in the first calendar quarter of the following year. Certain other dividends and related withholding taxes, if applicable, from Korean securities may be recorded subsequent to the ex-dividend date as soon as the Fund is informed of such dividends and taxes. Dividend and interest income on the Statement of Operations are shown gross of any foreign taxes withheld on income from foreign securities.
| 14 |
| 12.31.24 |
1. Organization and Significant Accounting Policies (continued)
(d) Federal Income Taxes
The Fund intends to distribute all of its taxable income and to comply with the other requirements of Subchapter M of the
Accounting for uncertainty in income taxes establishes for all entities, including pass-through entities such as the Fund, a minimum threshold for financial statement recognition of the benefit of positions taken in filing tax returns (including whether an entity is taxable in a particular jurisdiction), and requires certain expanded tax disclosures. In accordance with provisions set forth under
As of
(e)
The Foreign Exchange Transaction Act, the Presidential Decree relating to such Act and the regulations of the Minister of Strategy and Finance (formerly known as Minister of Finance and Economy) issued thereunder impose certain limitations and controls which generally affect foreign investors in
The Fund relinquished its license from the
Certain securities held by the Fund may be subject to aggregate or individual foreign ownership limits. These holdings are in industries that are deemed to be of national importance.
(f) Dividends and Distributions
The Fund declares dividends from net investment income and distributions of net realized capital gains, if any, at least annually. The Fund records dividends and distributions on the ex-dividend date. The amount of dividends from net investment income and distributions from net realized capital gains is determined in accordance with
(g) Foreign Currency Translation
The Fund's accounting records are maintained in
|
12.31.24 | |
15 |
1. Organization and Significant Accounting Policies (continued)
rate at the end of the period; and (2) purchases and sales, income and expenses are translated at the prevailing exchange rate on the respective dates of such transactions. The resulting net foreign currency gain (loss) is included in the Fund's Statement of Operations.
The Fund does not generally isolate that portion of the results of operations arising as a result of changes in foreign currency exchange rates from the fluctuations arising from changes in the market prices of securities. Accordingly, such foreign currency gain (loss) is included in net realized and unrealized gain (loss) on investments. However, the Fund does isolate the effect of fluctuations in foreign currency exchange rates when determining the gain (loss) upon the sale or maturity of foreign currency denominated debt obligations pursuant to
At
(h) Securities Lending
The Fund may engage in securities lending in order to generate additional income. The Fund is able to lend to approved borrowers.
Upon termination of the loan, the borrower will retuto the lender securities identical to the loaned securities. The Fund may pay reasonable finders', administration and custodial fees in connection with a loan of its securities and may share the interest earned on the collateral with the borrower. The Fund bears the risk of delay in recovery of, or even loss of rights in, the securities loaned should the borrower of the securities fail financially. The Fund also bears the risk of loss in the event the securities purchased with cash collateral depreciate in value.
The Fund did not have any securities on loan during the six months ended or at
2. Principal Risks
In the normal course of business, the Fund trades financial instruments and enters into financial transactions where risk of potential loss exists due to, among other things, changes in the market (market risk) or failure of the other party to a transaction to perform (counterparty risk). The Fund is also exposed to other risks such as, but not limited to, foreign currency risk.
To the extent the Fund directly invests in foreign currencies or in securities that trade in, and receive revenues in, foreign currencies, or in derivatives that provide exposure to foreign currencies, it will be subject to the risk that those currencies will decline in value relative to the
The Fund is subject to elements of risk not typically associated with investments in the
| 16 |
| 12.31.24 |
2. Principal Risks (continued)
The Fund may be subject to increased risk to the extent it allocates assets among investment styles and certain styles under-perform relative to other investment styles.
The market values of securities may decline due to general market conditions (market risk) which are not specifically related to a particular company, such as real or perceived adverse economic conditions, changes in the general outlook for corporate earnings, changes in interest or currency rates, adverse changes to credit markets or adverse investor sentiment. They may also decline due to factors that affect a particular industry or industries, such as labor shortages or increased production costs and competitive conditions within an industry. Equity securities and equity-related investments generally have greater market price volatility than fixed income securities, although under certain market conditions fixed income securities may have comparable or greater price volatility. Credit ratings downgrades may also negatively affect securities held by the Fund. Even when markets perform well, there is no assurance that the investments held by the Fund will increase in value along with the broader market. In addition, market risk includes the risk that local, regional or global events, including geopolitical and other events may disrupt the economy on a national or global level. For example, events such as war, acts of terrorism, the spread of infectious illness or other public health issues, recessions, or other events could have a significant impact on the economy or the markets for financial instruments and, as a result, could have a significant impact on the Fund and its investments. As a further example, an outbreak of respiratory disease caused by a novel coronavirus designated as COVID-19 was first detected in
The Fund is exposed to counterparty risk, or the risk that an institution or other entity with which the Fund has unsettled or open transactions will default. The potential loss to the Fund could exceed the value of the financial assets recorded in the Fund's financial statements. Financial assets, which potentially expose the Fund to counterparty risk, consist principally of cash due from counterparties and investments. The Investment Adviser seeks to minimize the Fund's counterparty risk by performing reviews of each counterparty and by minimizing concentration of counterparty risk by undertaking transactions with multiple customers and counterparties on recognized and reputable exchanges. Delivery of securities sold is only made once the Fund has received payment. Payment is made on a purchase once the securities have been delivered by the counterparty. The trade will fail if either party fails to meet its obligation.
3. Investment Adviser
The Fund has an Investment Advisory Agreement (the "Advisory Agreement") with the Investment Adviser. Subject to the supervision of the Fund's Board, the Investment Adviser is responsible for managing, either directly or through others selected by it, the Fund's investment activities, business affairs, and other administrative matters. Pursuant to the Management Agreement, the investment adviser receives an annual fee, payable monthly, at the annual rate of 0.70% of the value of the Fund's average daily net assets up to
4.
During the six months ended
|
12.31.24 | |
17 |
4.
(a)
Pursuant to an Administration Agreement,
Pursuant to a Global Custody Agreement, JPMCB also provides portfolio custody and accounting services to the Fund. For performing these services, the Fund pays JPMCB transaction and asset-based fees that vary according to the number of transactions and positions, plus out-of-pocket expenses. The accounting fee is subject to a minimum annual fee of
Pursuant to a Services Agreement,
(b) Directors
The Fund pays each of its Directors who is not a director, officer or employee of the Advisor, Administrator or any affiliate thereof, an annual fee of
5. Investments in Securities
For the six months ended
6. Income Tax Information
At
7. Discount Management Program / Conditional Tender
The Fund has a share repurchase program under which the Fund will repurchase in each twelve month period ended
For the six months ended
On
| 18 |
| 12.31.24 |
7. Discount Management Program / Conditional Tender
On
Following confirmation of the results, on
On
In addition to the shares repurchased in the six months ended
The next performance measurement period under the Fund's Tender
8. Fund Ownership
At
|
12.31.24 | |
19 |
Annual Stockholder Meeting Results
The Fund held its annual meeting of stockholders on
| Affirmative | Against | Abstain | ||||||||
|
Re-election Madam |
3,660,421 | 206,823 | 33,634 | |||||||
|
Re-election Mr. |
3,644,236 | 216,669 | 39,970 | |||||||
Mr.
Mr.
Proxy Voting Policies & Procedures:
A description of the policies and procedures that the Fund has adopted to determine how to vote proxies relating to portfolio securities and information about how the Fund voted proxies relating to portfolio securities held during the most recent twelve month period ended
| 20 |
| 12.31.24 |
| FACTS | WHAT DOES THE |
|
| Why? | Financial companies choose how they share your personal information. Federal law gives consumers the right to limit some but not all sharing. Federal law also requires us to tell you how we collect, share, and protect your personal information. Please read this notice carefully to understand what we do. | |
| What? |
The types of personal information we collect and share depend on the product or service you have with us. This information can include: ∎ Social Security number and account balances ∎ transaction history and account transactions ∎ checking account information and wire transfer instructions When you are no longer our customer, we continue to share your information as described in this notice. |
|
| How? | All financial companies need to share customers' personal information to run their everyday business. In the section below, we list the reasons financial companies can share their customers' personal information; the reasons |
|
| Reasons we can share your personal information | Does The |
Can you limit this sharing? |
||
|
For our everyday business purposes - such as to process your transactions, maintain your account(s), respond to court orders and legal investigations, or report to credit bureaus |
YES | NO | ||
|
For marketing purposes - to offer our products and services to you |
YES | NO | ||
| For joint marketing with other financial companies | NO | WE DON'T SHARE | ||
|
For our affiliates' everyday business purposes - information about your transactions and experiences |
NO | WE DON'T SHARE | ||
|
For our affiliates' everyday business purposes - information about your creditworthiness |
NO | WE DON'T SHARE | ||
| For nonaffiliates to market to you | NO | WE DON'T SHARE | ||
| QUESTIONS? | Call 1-866-706-0510 or go to www.thekoreafund.com | |
|
12.31.24 | |
21 |
|
Page 2 |
| Who we are | ||
| Who is providing this notice? | ||
| What we do | ||
| How does |
To protect your personal information from unauthorized access and use, we use security measures that comply with federal law. These measures include computer safeguards and secured files and buildings. We authorize our employees to access your information only when they need it to do their work and we require companies that work for us to protect your information. | |
| How does |
We collect your personal information, for example, when you: ∎ open an account or provide account information ∎ give us your contact information or pay us by check ∎ make wire transaction We also collect your personal information from others such as credit bureaus, affiliates, or other companies. |
|
| Why can't I limit all sharing? |
Federal law gives you the right to limit only ∎ sharing for affiliates' everyday business purposes - information about your creditworthiness ∎ affiliates from using your information to market to you ∎ sharing for nonaffiliates to market to you State laws and individual companies may give you additional rights to limit sharing. |
|
| Definitions | ||
| Affiliates |
Companies related by common ownership or control. They can be financial and nonfinancial companies. ∎ The Korea Fund, Inc. does not share with affiliates. |
|
| Nonaffiliates |
Companies not related by common ownership or control. They can be financial and nonfinancial companies. ∎ The Korea Fund, Inc. does not share with nonaffiliates so that they can market to you. |
|
| Joint marketing |
A formal agreement between nonaffiliated financial companies that together market financial products or services to you. ∎ The Korea Fund, Inc. does not jointly market. |
|
| 22 |
| 12.31.24 |
Investment Advisory Agreement
The Investment Company Act of 1940 (the "1940 Act") requires that both the full Board of Directors and a majority of the Directors of the Fund who are not "interested persons" (as defined in the 1940 Act) of the Fund (the "Independent Directors"), voting separately, annually approve the continuation of the Fund's investment advisory agreement (the "Agreement") with the Investment Adviser. The Fund's Board is comprised of four Directors, all of whom are Independent Directors. At an in-person meeting, the Board approved the continuation of the Agreement for an additional one-year term commencing
The Agreement took effect for an initial two-year term on
In connection with the JPMorgan Transition, the Board also adopted a policy (the "Tender
On
Prior to the Review Meetings, on behalf of the Directors, Fund counsel provided a written request for information from the Investment Adviser and other applicable JPMorgan Entities to provide all information as may reasonably be
|
12.31.24 | |
23 |
Investment Advisory Agreement (continued)
necessary for the Directors to evaluate the terms of the Agreement and its proposed continuation. In response to this request, the Board received and relied upon materials provided by or at the request of the Investment Adviser and other Other JPMorgan Entities. This information included, among other items, information from
The Directors also considered the broad range of information relevant to the annual contract review that is provided to the Board (including its various standing committees) at regular meetings throughout the year, some of which is identified above. This included, among other information, reports on the Fund's net asset value and market price investment performance, information regarding the Fund's share price trading discount and activity under the Fund's share repurchase program designed to address a trading discount, and periodic reports on, among other matters, pricing and valuation, quality and cost of portfolio trade execution, securities lending, compliance, and shareholder and other services provided by the Investment Adviser and Other JPMorgan Entities.
In determining to approve the continuation of the Agreement for a one-year period, the Directors considered all factors that they believed, in light of the legal advice furnished to them and their own business judgment, to be relevant to the interests of the Fund's stockholders. In evaluating the terms of the Agreement, the Board did not identify any single factor as controlling, and individual members of the Board did not necessarily attribute the same weight or importance to each factor, nor are the items described herein all-encompassing of the matters considered by the Board. Further, the Board's review of the Agreement is the result of review and discussion over a period of years, rather than one particular period. The Directors' conclusions may be based, in part, on their consideration of these arrangements during the course of the year and in prior years.
During the course of the Review Meetings, the Directors examined the nature, quality and extent of the services provided by the Investment Adviser and Other JPMorgan Entities to the Fund. Among other information, the Directors considered the investment philosophy and research and decision-making processes employed by the Investment Adviser; the experience of key advisory personnel of the Investment Adviser who are responsible for portfolio management and trading for the Fund; the ability of the Investment Adviser to attract and retain capable personnel; and the capabilities of the senior management and staff of the Investment Adviser and Other JPMorgan Entities who provide services to the Fund, including those who serve as officers of the Fund. In addition, the Directors considered the quality of services provided by the Investment Adviser and Other JPMorgan Entities with respect to regulatory compliance and compliance with the investment policies and restrictions of the Fund; the nature and quality of the supervisory and administrative services that Other JPMorgan Entities are responsible for providing to or procuring for the Fund; and conditions that might affect the abilities the Investment Adviser or Other JPMorgan Entities to provide high-quality services to the Fund under the Agreement and Other JPMorgan Agreements.
In considering the Fund's relative investment performance, the Directors focused mainly on periods commencing with the Investment Adviser's assumption of portfolio management responsibilities for the Fund on
| 24 |
| 12.31.24 |
Investment Advisory Agreement (continued)
account that the peer group consists of only three other closed-end funds that invest in equity securities in the
Based on the foregoing and other considerations, the Directors concluded that the Investment Adviser's investment process, research capabilities and philosophy continue to be well suited to the Fund given its investment objective and policies, and that the Investment Adviser and Other JPMorgan Entities will be able to continue to meet any reasonably foreseeable obligations under the Agreement and Other JPMorgan Agreements. The Directors also took into account that the conditional performance-based Tender
In assessing the reasonableness of the fees payable under the Agreement, the Directors took into account, among other factors, information provided by Broadridge comparing the Fund's fees and total expenses with the investment management fees and total expenses of funds in the
The Directors also took into account information regarding the management fees charged by the Investment Adviser to comparable funds and accounts it manages (none of which are
The Directors also considered an estimated annual profitability analyses provided by the Investment Adviser and Other JPMorgan Entities with respect to their relationships with the Fund, including descriptions of the methodologies and assumptions used in estimating profitability. Based on the information provided, the Directors determined, taking into account the various assumptions made, that such estimated profitability did not appear to be excessive.
The Directors also took into account the entrepreneurial and business risks to which the Investment Adviser and Other JPMorgan Entities are subject in their roles as investment adviser, administrator, fund accountant and custodian for the Fund.
The Directors also considered the extent to which the Investment Adviser and Other JPMorgan Entities may realize economies of scale or other efficiencies in managing and supporting the Fund. The Directors noted that, as a listed closed-end fund, it is not currently anticipated that the Fund will raise additional assets or otherwise grow in size other than through possible investment gains. However, the Directors took into account, among other factors, that Agreement imposes a fee waiver/breakpoint from 0.70% to 0.65% on the Fund's average daily net assets in excess of
Additionally, the Directors considered so-called "fall-out benefits" to JPMorgan from the Investment Adviser's relationship as investment adviser to the Fund, such as research, statistical and quotation services, if any, the firm may receive from broker-dealers executing the Fund's portfolio transactions or reputational value derived from serving as investment adviser to the Fund. They also considered the compensation and other benefits received by Other JPMorgan Entities, including JPMFL and JPMorgan Chase, for providing administrative, fund accounting, custody and other services to the Fund pursuant to the Other JPMorgan Agreements.
After reviewing and considering these and other factors described herein, the Directors concluded, in their business judgment, within the context of their overall conclusions regarding the Agreement and other arrangements with JPMorgan, and based on information provided and related representations made by the Investment Adviser and Other JPMorgan Entities, that they were satisfied that the fees payable under the Agreement represent reasonable compensation in light of the nature, extent and quality of services provided by the Investment Adviser. Based on their evaluation of factors that they deemed to be material, including but not limited to those factors described above, the Board and the Independent Directors unanimously approved the continuance of the Agreement for an additional one-year term commencing
|
12.31.24 | |
25 |
| Directors | Officers | |
|
Madam Chief Legal Officer |
Simon J. Crinage |
Investment Adviser
19th Floor, Chater House, 8 Connaught Road Central
Fund Services Provider
60 Victoria Embankment
Custodian & Accounting Agent
Transfer Agent, Dividend Paying Agent and Registrar
Independent Registered Public Accounting Firm
Legal Counsel
This report, including the financial information herein, is transmitted to the stockholders of
The financial information included herein is taken from the records of the Fund without examination by an independent registered public accounting firm, who did not express an opinion herein.
Notice is hereby given in accordance with Section 23(c) of the Investment Company Act of 1940, as amended, that from time to time the Fund may purchase shares of its common stock in the open market.
The Fund files its complete schedule of portfolio holdings with the
Information on the Fund is available at www.thekoreafund.com or by calling the Fund's stockholder servicing agent at (866) 706-0510.
AZ612SAR-
1228050
ITEM 2. CODE OF ETHICS
Not required in this filing.
ITEM 3. AUDIT COMMITTEE FINANCIAL EXPERT
Not required in this filing.
ITEM 4. PRINCIPAL ACCOUNTANT FEES AND SERVICES
Not required in this filing.
ITEM 5. AUDIT COMMITTEE OF LISTED REGISTRANT
Not required in this filing.
ITEM 6. INVESTMENTS
(a) The registrant's Schedule of Investments is included as part of the report to shareholders filed under Item 1 of this form.
(b) Not applicable.
ITEM 7. FINANCIAL STATEMENTS AND FINANCIAL HIGHLIGHTS FOR OPEN-END MANAGEMENT INVESTMENT COMPANIES
Not Applicable
ITEM 8. CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS FOR OPEN-END MANAGEMENT INVESTMENT COMPANIES
Not Applicable
ITEM 9. PROXY DISCLOSURES FOR OPEN-END MANAGEMENT INVESTMENT COMPANIES
Not Applicable
ITEM 10. REMUNERATION PAID TO DIRECTORS, OFFICERS, AND OTHERS OF OPEN-END MANAGEMENT INVESTMENT COMPANIES
Not Applicable
ITEM 11. STATEMENT REGARDING BASIS FOR APPROVAL OF INVESTMENT ADVISORY CONTRACT
Not Applicable
ITEM 12. DISCLOSURE OF PROXY VOTING POLICIES AND PROCEDURES FOR CLOSED-END MANAGEMENT INVESTMENT COMPANIES
Not required in this filing.
ITEM 13. PORTFOLIO MANAGERS OF CLOSED-END MANAGEMENT INVESTMENT COMPANIES
Not required in this filing.
ITEM 14. PURCHASE OF EQUITY SECURITIES BY CLOSED-END MANAGEMENT INVESTMENT COMPANY AND AFFILIATED PURCHASERS
REGISTRANT PURCHASES OF EQUITY SECURITIES
| Period | (a) Total Number of Shares Purchased |
(b) Average Price Paid per Share |
(c) Total Number of Shares Purchased as Part of Publicly Announced Plans or Programs |
(d) Maximum Number (or Approximate Dollar Value) of Shares (or Units) that May Yet Be Purchased Under the Plans or Programs |
||||||||||||
|
|
769 | 24.330 | 769 | 483,315 shares | ||||||||||||
|
|
- | - | 769 | 483,315 shares | ||||||||||||
|
|
604,144 | * | 26.420 | 604,913 | 422,900 shares | |||||||||||
|
|
25,544 | 22.329 | 630,457 | 420,346 shares | ||||||||||||
|
|
18,262 | 20.591 | 648,719 | 418,520 shares | ||||||||||||
|
|
13,055 | 19.812 | 661,774 | 417,214 shares | ||||||||||||
|
Total |
661,774 | |||||||||||||||
| * |
This amount relates solely to the one-off tender offer that took place in |
| 1 |
Subject to commission fees on a tiered rate basis. Once commissions of |
| 2 |
The Fund has a share repurchase program under which the Fund will repurchase in each twelve month period ended |
ITEM 15. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS
There have been no material changes to the procedures by which shareholders may recommend nominees to the Fund's Board of Directors since the Fund last provided disclosure in response to this item.
ITEM 16. CONTROLS AND PROCEDURES
(a) The registrant's President and Chief Executive Officer and Treasurer,
the registrant's disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940 (the "1940 Act") (17 CFR 270.30a-3(c))), as amended, are effective based on their evaluation of these controls and procedures as of a date within 90 days of the filing date of this document.
(b) There were no significant changes in the registrant's internal control over financial reporting (as defined in Rule 30a-3(d) under the 1940 Act (17 CFR 270.30a-3(d))) that occurred during the most recent annual period covered by this report that has materially affected, or is reasonably likely to materially affect, the registrants internal control over financial reporting, except that the control procedures of the current Investment Adviser were adopted on their appointment effective
ITEM 17. DISCLOSURE OF SECURITIES LENDING ACTIVITIES FOR CLOSED-END MANAGEMENT INVESTMENT COMPANIES.
(a)
(1) Gross income from securities lending activities:
(2) All fees and/or compensation for securities lending activities and related services:
(3) Aggregate fees/compensation:
(4) Net income from securities lending activities:
(b) The Fund may lend up to 33 1/3% of the Fund's total assets via
to securities of the
ITEM 18. RECOVERY OF ERRONEOUSLY AWARDED COMPENSATION
Not Applicable
ITEM 19. EXHIBITS
(a)(1) Not required in this filing
(a)(2) Not applicable
(a)(3) Exhibit 99_CERT. - Certification pursuant to Section 302 of the Sarbanes-Oxley Act of 2002
(a)(4) Not applicable
(b) Exhibit 99.906_CERT. - Certification pursuant to Section 906 of the Sarbanes-Oxley Act of 2002
Signature
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.
(Registrant)
| By: | /s/ Simon J Crinage | |
| Simon J Crinage | ||
| President and Chief Executive Officer | ||
| Date: | ||
| By: | /s/ Neil S Martin | |
| Neil S Martin | ||
| Treasurer, |
||
| Accounting Officer | ||
| Date: | ||
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/ Simon J Crinage | |
| Simon J Crinage | ||
| President and Chief Executive Officer | ||
| Date: | ||
| By: | /s/ Neil S Martin | |
| Neil S Martin | ||
| Treasurer, |
||
| Accounting Officer | ||
| Date: | ||
Attachments
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