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UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

 

FORM N-Q

 

Quarterly Schedule of Portfolio Holdings of Registered

Management Investment Company

 

Investment Company Act file number:   811-22004

 

ING Asia Pacific High Dividend Equity Income Fund

(Exact name of registrant as specified in charter)

 

7337 East Doubletree Ranch Rd., Scottsdale, AZ 85258

(Address of principal executive offices)          (Zip code)

 

 

Huey P. Falgout, Jr., 7337 East Doubletree Ranch Road, Scottsdale, AZ 85258 

(Name and address of agent for service)

 

Registrant’s telephone number, including area code: 1-800-992-0180

 

Date of fiscal year end:

February 28

Date of reporting period:

May 31, 2010

 



 

Item 1. Schedule of Investments

 

The schedules of investments as of the close of the reporting period are set forth below for:

 

ING Asia Pacific High Dividend Equity Income Fund

 

The schedules are not audited.

 



 

 

 

PORTFOLIO OF INVESTMENTS

ING Asia Pacific High Dividend Equity Income Fund

 

as of May 31, 2010 (Unaudited)

 

Shares

 

 

 

 

 

Value

 

COMMON STOCK: 89.6%

 

 

 

 

 

 

 

Australia: 25.5%

 

 

 

175,214

 

S

 

Australia & New Zealand Banking Group Ltd.

 

$

3,316,026

 

239,369

 

S

 

BHP Billiton Ltd.

 

7,765,168

 

101,224

 

S

 

Commonwealth Bank of Australia

 

4,434,984

 

77,276

 

S

 

CSL Ltd.

 

2,047,569

 

526,697

 

S

 

Foster’s Group Ltd.

 

2,445,943

 

47,496

 

 

 

Macquarie Group Ltd.

 

1,751,350

 

162,313

 

S

 

National Australia Bank Ltd.

 

3,381,481

 

45,288

 

S

 

Newcrest Mining Ltd.

 

1,221,495

 

88,942

 

S

 

Orica Ltd.

 

1,893,186

 

86,444

 

S

 

Origin Energy Ltd.

 

1,085,648

 

87,664

 

S

 

QBE Insurance Group Ltd.

 

1,445,758

 

48,069

 

S

 

Rio Tinto Ltd.

 

2,739,942

 

101,712

 

S

 

Santos Ltd.

 

1,062,486

 

170,000

 

S

 

Suncorp-Metway Ltd.

 

1,162,558

 

342,950

 

 

 

TABCORP Holdings Ltd.

 

1,928,263

 

585,263

 

 

 

Tattersall’s Ltd.

 

1,174,599

 

457,707

 

S

 

Telstra Corp. Ltd.

 

1,140,719

 

89,815

 

S

 

Wesfarmers Ltd.

 

2,184,971

 

206,365

 

S

 

Westpac Banking Corp.

 

4,050,384

 

62,818

 

S

 

Woodside Petroleum Ltd.

 

2,294,792

 

83,916

 

S

 

Woolworths Ltd.

 

1,871,005

 

 

 

 

 

 

 

50,398,327

 

 

 

 

 

China: 11.7%

 

 

 

2,178,000

 

 

 

Anhui Expressway Co., Ltd.

 

1,323,152

 

5,956,000

 

 

 

Bank of China Ltd.

 

2,959,982

 

1,001,000

 

 

 

China Coal Energy Co. - Class H

 

1,354,213

 

3,630,000

 

 

 

China Construction Bank

 

2,902,898

 

696,000

 

 

 

China Life Insurance Co., Ltd.

 

3,047,035

 

2,404,000

 

 

 

China Petroleum & Chemical Corp.

 

1,899,932

 

2,668,000

 

 

 

Datang International Power Generation Co., Ltd.

 

1,069,238

 

3,529,000

 

 

 

Industrial and Commercial Bank of China Ltd.

 

2,596,447

 

1,432,000

 

 

 

Jiangsu Expressway Co., Ltd.

 

1,281,441

 

2,228,000

 

 

 

PetroChina Co., Ltd.

 

2,428,985

 

4,438,000

 

 

 

Renhe Commercial Holdings Co. Ltd

 

960,839

 

65,600

 

 

 

Tencent Holdings Ltd.

 

1,255,136

 

 

 

 

 

 

 

23,079,298

 

 

 

 

 

Hong Kong: 14.3%

 

 

 

894,500

 

 

 

BOC Hong Kong Holdings Ltd.

 

1,993,512

 

194,000

 

 

 

Cheung Kong Holdings Ltd.

 

2,192,366

 

592,000

 

 

 

China Everbright Ltd.

 

1,293,469

 

516,000

 

 

 

China Merchants Holdings International Co., Ltd.

 

1,585,958

 

499,000

 

 

 

China Mobile Ltd.

 

4,670,607

 

900,000

 

 

 

China Resources Land Ltd.

 

1,678,438

 

1,529,000

 

 

 

CNOOC Ltd.

 

2,359,284

 

167,209

 

 

 

Esprit Holdings Ltd.

 

943,700

 

93,900

 

 

 

Hang Seng Bank Ltd.

 

1,256,482

 

82,100

 

 

 

Hong Kong Exchanges and Clearing Ltd.

 

1,266,561

 

227,000

 

 

 

HongKong Electric Holdings

 

1,340,499

 

198,000

 

 

 

Hutchison Whampoa Ltd.

 

1,234,560

 

268,000

 

 

 

Li & Fung Ltd.

 

1,183,559

 

509,000

 

 

 

Shanghai Industrial Holdings Ltd.

 

2,044,227

 

143,000

 

 

 

Sun Hung Kai Properties Ltd.

 

1,894,727

 

255,000

 

 

 

Wharf Holdings Ltd.

 

1,249,624

 

 

 

 

 

 

 

28,187,573

 

 

 

 

 

India: 5.9%

 

 

 

31,025

 

 

 

HDFC Bank Ltd.

 

1,263,593

 

93,402

 

 

 

ICICI Bank Ltd.

 

1,725,245

 

55,944

 

 

 

Infosys Technologies Ltd.

 

3,218,365

 

76,700

 

 

 

Oil & Natural Gas Corp. Ltd.

 

1,859,405

 

116,200

 

 

 

Reliance Industries Ltd.

 

2,579,539

 

 



 

 

 

PORTFOLIO OF INVESTMENTS

ING Asia Pacific High Dividend Equity Income Fund

 

as of May 31, 2010 (Unaudited) (continued)

 

Shares

 

 

 

 

 

Value

 

 

 

 

 

India (continued)

 

 

 

72,544

 

 

 

Sterlite Industries India Ltd.

 

$

1,041,043

 

 

 

 

 

 

 

11,687,190

 

 

 

 

 

Indonesia: 2.2%

 

 

 

1,596,000

 

 

 

Bank Rakyat Indonesia

 

1,444,370

 

349,500

 

 

 

PT Astra International Tbk

 

1,573,565

 

1,619,500

 

 

 

Telekomunikasi Indonesia Tbk PT

 

1,336,621

 

 

 

 

 

 

 

4,354,556

 

 

 

 

 

Malaysia: 3.1%

 

 

 

1,051,600

 

 

 

Commerce Asset Holdings BHD

 

2,164,953

 

192,500

 

 

 

Digi.com BHD

 

1,324,157

 

354,302

 

 

 

Public Bank BHD

 

1,229,880

 

1,753,000

 

 

 

Resorts World BHD

 

1,411,433

 

 

 

 

 

 

 

6,130,423

 

 

 

 

 

New Zealand: 0.5%

 

 

 

862,079

 

 

 

Telecom Corp. of New Zealand Ltd.

 

1,090,016

 

 

 

 

 

 

 

1,090,016

 

 

 

 

 

Philippines: 0.5%

 

 

 

18,520

 

 

 

Philippine Long Distance Telephone Co.

 

951,360

 

 

 

 

 

 

 

951,360

 

 

 

 

 

Singapore: 4.8%

 

 

 

238,500

 

 

 

DBS Group Holdings Ltd.

 

2,347,907

 

320,000

 

 

 

Keppel Corp. Ltd.

 

1,990,532

 

881,000

 

 

 

Singapore Press Holdings Ltd.

 

2,347,979

 

758,000

 

 

 

Singapore Telecommunications Ltd.

 

1,552,262

 

90,000

 

 

 

United Overseas Bank Ltd.

 

1,166,175

 

 

 

 

 

 

 

9,404,855

 

 

 

 

 

South Korea: 8.3%

 

 

 

96,300

 

 

 

Kangwon Land, Inc.

 

1,350,131

 

45,262

 

 

 

KB Financial Group, Inc.

 

1,831,651

 

206,370

 

 

 

Korea Exchange Bank

 

2,168,444

 

29,990

 

 

 

KT&G Corp.

 

1,454,819

 

28,498

 

 

 

LG Corp.

 

1,586,889

 

4,785

 

 

 

Posco

 

1,864,733

 

7,383

 

 

 

Samsung Electronics Co., Ltd.

 

4,778,207

 

9,687

 

 

 

SK Telecom Co., Ltd.

 

1,288,959

 

 

 

 

 

 

 

16,323,833

 

 

 

 

 

Taiwan: 10.8%

 

 

 

682,587

 

 

 

Acer, Inc.

 

1,708,142

 

1,008,370

 

 

 

Asia Cement Corp.

 

864,089

 

2,270,200

 

 

 

China Steel Corp.

 

2,147,802

 

779,550

 

 

 

Chunghwa Telecom Co., Ltd.

 

1,492,573

 

2,654,975

 

 

 

First Financial Holding Co., Ltd.

 

1,360,308

 

169,396

 

 

 

High Tech Computer Corp.

 

2,291,879

 

662,400

 

 

 

HON HAI Precision Industry Co., Ltd.

 

2,618,290

 

71,000

 

 

 

MediaTek, Inc.

 

1,137,209

 

1,247,350

 

 

 

Quanta Computer, Inc.

 

2,238,636

 

455,000

 

 

 

Taiwan Fertilizer Co., Ltd.

 

1,260,265

 

1,642,052

 

 

 

Taiwan Semiconductor Manufacturing Co., Ltd.

 

3,011,005

 

684,083

 

 

 

Wistron Corp.

 

1,122,330

 

 

 

 

 

 

 

21,252,528

 

 

 

 

 

Thailand: 2.0%

 

 

 

457,800

 

 

 

Kasikornbank PCL

 

1,203,274

 

178,000

 

 

 

PTT PCL

 

1,320,530

 

202,700

 

 

 

Siam Cement PCL

 

1,516,698

 

 

 

 

 

 

 

4,040,502

 

 

 

 

 

Total Common Stock

 

 

 

 

 

 

 

(Cost $170,525,312)

 

176,900,461

 

REAL ESTATE INVESTMENT TRUSTS: 2.9%

 

 

 

 

 

 

 

Australia: 1.1%

 

 

 

193,000

 

S

 

Westfield Group

 

2,075,262

 

 

 

 

 

 

 

2,075,262

 

 

 

 

 

Singapore: 1.8%

 

 

 

3,452,000

 

 

 

Ascendas India Trust

 

2,208,495

 

990,733

 

 

 

Ascendas Real Estate Investment Trust

 

1,343,900

 

 

 

 

 

 

 

3,552,395

 

 

 

 

 

Total Real Estate Investment Trusts

 

 

 

 

 

 

 

(Cost $6,067,486)

 

5,627,657

 

 



 

 

 

PORTFOLIO OF INVESTMENTS

ING Asia Pacific High Dividend Equity Income Fund

 

as of May 31, 2010 (Unaudited) (continued)

 

Shares

 

 

 

 

 

Value

 

EXCHANGE-TRADED FUNDS: 2.4%

 

 

 

 

 

 

 

South Korea: 2.4%

 

 

 

271,052

 

 

 

Samsung Kodex200 Exchange Traded Fund

 

$

4,830,450

 

 

 

 

 

 

 

 

 

 

 

 

 

Total Exchange-Traded Funds

 

 

 

 

 

 

 

(Cost $2,652,883)

 

4,830,450

 

PREFERRED STOCK: 2.2%

 

 

 

 

 

 

 

South Korea: 2.2%

 

 

 

45,460

 

 

 

Hyundai Motor Co.

 

1,976,334

 

5,401

 

 

 

Samsung Electronics Co., Ltd.

 

2,304,127

 

 

 

 

 

Total Preferred Stock

 

 

 

 

 

 

 

(Cost $3,611,161)

 

4,280,461

 

 

 

 

 

Total Investments in Securities

 

 

 

 

 

 

 

(Cost $182,856,842)*

97.1%

 

$

191,639,029

 

 

 

 

 

Other Assets and Liabilities - Net

2.9

 

5,697,460

 

 

 

 

 

Net Assets

100.0%

 

$

197,336,489

 

 

 

 

 

 

 

 

 

 

 

S

 

All or a portion of this security has been identified by the Fund to cover future collateral requirements for applicable futures, options, swaps, foreign currency contracts and/or when-issued or delayed-delivery securities.

 

 

 

 

 

*

 

Cost for federal income tax purposes is $185,473,835.

 

 

 

 

 

 

 

Net unrealized appreciation consists of:

 

 

 

 

 

 

 

Gross Unrealized Appreciation

 

$

29,546,172

 

 

 

 

 

Gross Unrealized Depreciation

 

(23,380,978)

 

 

 

 

 

Net Unrealized Appreciation

 

$

6,165,194

 

 



 

 

 

PORTFOLIO OF INVESTMENTS

ING Asia Pacific High Dividend Equity Income Fund

 

as of May 31, 2010 (Unaudited) (continued)

 

 

 

Percentage of

 

Industry

 

Net Assets

 

Consumer Discretionary

 

7.0%

 

Consumer Staples

 

4.0

 

Energy

 

9.3

 

Financials

 

34.7

 

Health Care

 

1.0

 

Industrials

 

5.6

 

Information Technology

 

13.1

 

Materials

 

11.3

 

Telecommunication Services

 

7.5

 

Utilities

 

1.2

 

Other Long-Term Investments

 

2.4

 

Other Assets and Liabilities - Net

 

2.9

 

Net Assets

 

100.0%

 

 



 

 

 

PORTFOLIO OF INVESTMENTS

ING Asia Pacific High Dividend Equity Income Fund

 

as of May 31, 2010 (Unaudited) (continued)

 

Fair Value Measurements

 

The following is a summary of the fair valuations according to the inputs used as of May 31, 2010 in valuing the Fund’s assets and liabilities:

 

 

 

Quoted Prices

 

Significant Other

 

Significant

 

 

 

 

 

in Active Markets

 

Observable

 

Unobservable

 

Fair Value

 

 

 

for Identical Investments

 

Inputs#

 

Inputs

 

at

 

 

 

(Level 1)

 

(Level 2)

 

(Level 3)

 

5/31/2010

 

Asset Table

 

 

 

 

 

 

 

 

 

Investments, at value

 

 

 

 

 

 

 

 

 

Common Stock

 

 

 

 

 

 

 

 

 

Australia

 

$

 

$

50,398,327

 

$

 

$

50,398,327

 

China

 

2,428,985

 

20,650,313

 

 

23,079,298

 

Hong Kong

 

 

28,187,573

 

 

28,187,573

 

India

 

 

11,687,190

 

 

11,687,190

 

Indonesia

 

 

4,354,556

 

 

4,354,556

 

Malaysia

 

 

6,130,423

 

 

6,130,423

 

New Zealand

 

 

1,090,016

 

 

1,090,016

 

Philippines

 

 

951,360

 

 

951,360

 

Singapore

 

 

9,404,855

 

 

9,404,855

 

South Korea

 

 

16,323,833

 

 

16,323,833

 

Taiwan

 

 

21,252,528

 

 

21,252,528

 

Thailand

 

 

4,040,502

 

 

4,040,502

 

Total Common Stock

 

2,428,985

 

174,471,476

 

 

176,900,461

 

Real Estate Investment Trusts

 

2,208,495

 

3,419,162

 

 

5,627,657

 

Exchange-Traded Funds

 

4,830,450

 

 

 

4,830,450

 

Preferred Stock

 

 

4,280,461

 

 

4,280,461

 

Total Investments, at value

 

$

9,467,930

 

$

182,171,099

 

$

 

$

191,639,029

 

 

 

 

 

 

 

 

 

 

 

Liabilities Table

 

 

 

 

 

 

 

 

 

Other Financial Instruments+:

 

 

 

 

 

 

 

 

 

Written options

 

 

(258,794)

 

 

(258,794)

 

Total Liabilities

 

$

 

$

(258,794)

 

$

 

$

(258,794)

 

 

+ Other Financial Instruments are derivatives not reflected in the Portfolio of Investments and may include open forward foreign currency contracts, futures, swaps, and written options. Forward foreign currency contracts and futures are reported at their unrealized gain/loss at measurement date which represents the amount due to/from the Fund. Swaps and written options are reported at their market value at measurement date.

 

# The earlier close of the foreign markets gives rise to the possibility that significant events, including broad market moves, may have occurred in the interim and may materially affect the value of those securities. To account for this, the Portfolio may frequently value many of its foreign equity securities using fair value prices based on third party vendor modeling tools to the extent available. Accordingly, a significant portion of the Portfolio’s investments are categorized as Level 2 investments.

 



 

 

 

PORTFOLIO OF INVESTMENTS

ING Asia Pacific High Dividend Equity Income Fund

 

as of May 31, 2010 (Unaudited) (continued)

 

Written OTC Call Options

 

# of

 

 

 

 

 

Expiration

 

Strike

 

 

 

Premiums

 

 

Contracts

 

Counterparty

 

Description

 

Date

 

Price/Rate

 

 

 

Received

 

Value

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

4,675

 

Deutsche Bank

 

Australia S&P/ASX 200 Index

 

06/10/10

 

4,605.6600

 

AUD

 

$

 498,870

 

$

 (82,538)

4,850

 

Merrill Lynch

 

Hong Kong Hang Seng Index

 

06/10/10

 

20,109.1500

 

HKD

 

359,826

 

(143,949)

50,900,000

 

Citigroup

 

Korea KOSPI 200 Index

 

06/10/10

 

219.8110

 

KRW

 

229,661

 

(22,210)

33,600

 

Morgan Stanley

 

Taiwan TAIEX Index

 

06/10/10

 

7,675.9135

 

TWD

 

181,302

 

(10,097)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

$

1,269,659

 

$

(258,794)

 



 

 

 

PORTFOLIO OF INVESTMENTS

ING Asia Pacific High Dividend Equity Income Fund

 

as of May 31, 2010 (Unaudited) (continued)

 

On March 19, 2008, the FASB issued Statement of Financial Accounting Standards No. 161 (“SFAS No. 161”), “Disclosure about Derivative Instruments and Hedging Activities.” This new accounting statement requires enhanced disclosures about an entity’s derivative and hedging activities. Entities are required to provide enhanced disclosures about (a) how and why an entity invests in derivatives, (b) how derivatives are accounted for under SFAS No. 133, and ( c ) how derivatives affect an entity’s financial position, financial performance, and cash flows. SFAS No. 161 also requires enhanced disclosures regarding credit-risk related contingent features of derivative instruments.

 

The following is a summary of the fair valuations of the Fund’s derivative instruments categorized by risk exposure as of May 31, 2010:

 

 

 

Derivatives Fair Value*

Equity contracts

 

$

(258,794)

Total

 

$

(258,794)

 

* Forward foreign currency contracts and futures are reported at their unrealized gain/loss at measurement date which represents the amount due to/from the Fund. Swaps, purchased options and written options are reported at their market value at measurement date.

 



 

SIGNATURES

 

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

 

(Registrant):   ING Asia Pacific High Dividend Equity Income Fund

 

By

/s/ Shaun P. Mathews

 

 

Shaun P. Mathews

 

 

President and Chief Executive Officer

 

 

 

 

Date:

July 21, 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/ Shaun P. Mathews

 

 

Shaun P. Mathews

 

 

President and Chief Executive Officer

 

 

 

 

Date:

July 21, 2010

 

 

 

 

By

/s/ Todd Modic

 

 

Todd Modic

 

 

Senior Vice President and Chief Financial Officer

 

 

 

 

Date:

July 21, 2010