tgcfmarch2009formnq.htm

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: 811-05617

Taiwan Greater China Fund

(Exact name of registrant as specified in charter)

Nanking Road Capital Management, LLC
111 Gillett Street
Hartford, CT 06105

(Address of principal executive offices)           (Zip code)

Brown Brothers Harriman and Co.
40 Water St.
Boston, MA 02109
(Name and address of agent for service)

Registrant’s telephone number, including area code: 1-800-343-9567

Date of fiscal year end: December 31
Date of reporting period: March 31, 2009




 
ITEM 1.                      SCHEDULE OF INVESTMENTS



TAIWAN GREATER CHINA FUND
          
Schedule of Investments (Unaudited) / March 31, 2009
                 
COMMON STOCK -- 98.65%
          
       
% of
U.S. Dollar
Cement -- 3.86%
    
Net Assets
 Value
 
838,615
shs.
Asia Cement Corp.
1.34
    
$
726,823
 
1,657,373
  
Taiwan Cement Corp.
2.52
      
1,365,591
               
2,092,414
Communications Equipment -- 0.43%
    
 
165,787
  
Gemtek Technology
0.43
      
234,590
Computer Peripherals/ODM -- 3.85%
    
 
108,899
  
HTC Corp.
2.47
      
1,338,685
 
1,111,433
  
Lite-on Technology Corp.
1.38
      
750,304
               
2,088,989
Computer Systems & Hardware -- 21.32%
    
 
500,651
  
Acer Inc.
1.39
      
752,703
 
90,980
  
Advantech Co., Ltd.
0.23
      
126,324
 
2,151,154
  
Asustek Computer Inc.
4.17
      
2,260,735
 
460,494
  
Compal Electronics Inc.
0.61
      
329,875
 
2,515,531
  
Hon Hai Precision Industry Co., Ltd.
10.49
      
5,687,790
 
426,242
  
Inventec Co., Ltd.
0.32
      
171,517
 
1,094,828
  
Quanta Computer Inc.
2.55
      
1,382,978
 
787,075
  
Wistron Corp.
1.56
      
848,051
               
11,559,973
Electrical & Machinery -- 0.68%
          
 
465,000
  
Teco Electric & Machinery Co., Ltd.
0.28
      
150,787
 
1,090,837
  
Walsin Lihwa Corp.
0.40
      
218,669
               
369,456
Electronic Components -- 8.18%
          
 
218,676
  
Catcher Technology Co., Ltd.
0.89
      
480,260
 
1,011,129
  
Delta Electronics Inc.
3.43
      
1,859,986
 
150,979
  
Everlight Electronics Co.
0.51
      
277,728
 
275,557
  
Foxconn Technology Co., Ltd.
1.35
      
730,281
 
25,695
  
Motech Industry Co., Ltd.
0.13
      
71,202
 
65,000
  
Nan Ya Printed Circuit Board Corp.
0.31
      
166,514
 
141,799
  
Shin Zu Shing Co., Ltd.
0.91
      
493,258
 
263,000
  
TXC Corp.
0.41
      
224,839
 
221,378
  
Unimicron Technology Corp.
0.24
      
131,827
               
4,435,895
Electronics/Other -- 1.85%
          
 
125,000
  
Lumax International Corp., Ltd.
0.27
      
145,370
 
677,615
  
Synnex Technology International Corp.
1.58
      
855,958
               
1,001,328
Financial Services -- 1.48%
          
 
932,000
  
Cathay Financial Holding Co., Ltd.
1.48
      
800,890
Flat-Panel Displays -- 8.16%
          
 
3,622,381
  
AU Optronics Corp.
5.52
      
2,995,336
 
2,028,847
  
Chi Mei Optoelectronics Corp.
1.50
      
810,414
 
3,147,951
  
Chunghwa Picture Tubes, Ltd.
0.70
      
381,407
 
246,983
  
Innolux Display Corp.
0.44
      
240,634
               
4,427,791
Food -- 5.34%
              
 
290,405
  
Great Wall Enterprises Co.
0.41
      
221,301
 
662,000
*
Tingyi (Cayman Islands) Holdings Corp.
1.42
      
768,759
 
1,815,638
  
Uni-President Enterprise Corp.
2.71
      
1,471,907
 
938,000
  
Want Want China Holdings, Ltd.
0.80
      
435,708
               
2,897,675
Glass, Paper & Pulp -- 0.60%
          
 
616,384
  
Taiwan Glass Ind. Corp.
0.60
      
327,071
Plastics -- 11.61%
              
 
1,217,299
  
Formosa Chemicals & Fiber Corp.
2.65
      
1,435,409
 
1,632,983
  
Formosa Plastics Corp.
4.53
      
2,459,921
 
2,099,319
  
Nan Ya Plastics Corp.
4.43
      
2,401,202
               
6,296,532
                 
TAIWAN GREATER CHINA FUND
          
Schedule of Investments (Continued) (Unaudited) / March 31, 2009
                 
       
% of
U.S. Dollar
Retailing -- 0.56%
    
Net Assets
 Value
 
131,512
shs.
President Chain Store Corp.
0.56
      
301,235
Rubber -- 0.90%
              
 
504,777
  
Cheng Shin Rubber Ind. Co., Ltd.
0.90
      
488,825
Semiconductors -- 20.19%
    
 
2,597,762
  
Advanced Semiconductor Engineering Inc.
2.32
      
1,259,748
 
401,543
  
MediaTek Inc.
6.96
      
3,776,081
 
112,525
  
Powertech Technology Inc.
0.38
      
203,011
 
543,193
  
Siliconware Precision Industries Co., Ltd.
1.05
      
571,664
 
3,015,005
  
Taiwan Semiconductor Manufacturing Co., Ltd.
8.42
      
4,568,459
 
1,752,397
  
United Microelectronics Corp.
1.06
      
573,422
               
10,952,385
Steel -- 4.46%
              
 
3,695,621
  
China Steel Corp.
4.46
      
2,418,572
Textiles -- 1.38%
              
 
963,093
  
Far Eastern Textile, Ltd.
1.38
      
749,533
Transportation -- 1.21%
            
 
195,000
*
China Airlines
0.09
      
48,575
 
235,000
  
U-Ming Marine Transport Corp.
0.65
      
354,003
 
814,261
  
Yang Ming Marine Transport Corp.
0.47
      
255,642
               
658,220
Other -- 2.59%
              
 
222,050
  
Giant Manufacturing Co., Ltd.
0.84
      
456,904
 
481,000
  
Merida Industry Co., Ltd.
1.07
      
577,109
 
669,473
  
Pou Chen Corp.
0.68
      
368,070
               
1,402,083
TOTAL COMMON STOCK (COST $70,923,715)
        
53,503,457
                 
SHORT-TERM SECURITIES -- 0.16%
          
Time Deposit -- 0.16%
            
Citibank - London, 0.10%, Due 04/01/09
0.16
      
83,775
TOTAL SHORT-TERM SECURITIES
          
 
(COST $83,775)
            
83,775
                 
TOTAL INVESTMENTS IN SECURITIES AT FAIR VALUE
          
 
(COST $71,007,490)
  
98.81
      
53,587,232
                 
OTHER ASSETS (LESS LIABILITIES)
1.19
      
645,985
                 
NET ASSETS
    
100.00
      
$54,233,217
                 
                 
                 
                 
At March 31, 2009, the cost of investments, excluding short-term investments, for U.S. federal income tax purposes
was approximately equal to the cost of such investments for financial reporting purposes.  At March 31, 2009, the
unrealized depreciation of $17,420,258 for financial reporting purposes consisted of $1,986,987 of gross unrealized
appreciation and $19,407,245 of gross unrealized depreciation.
          
                 
                 
*
Non-income producing: These stocks did not pay a cash dividend during the past year.
        
                 

 
 

******************************
 
Fair Value Measurements — Effective January 1, 2008, the Trust adopted the provisions of Statement of Financial Accounting Standards No. 157 – Fair Value Measurements (“FAS 157” or the “Statement”).  FAS 157 defines fair value, establishes a framework for measuring fair value in generally accepted accounting principles, and expands disclosures about fair value measurement.  The changes to current practices resulting from the application of the Statement relate to the definition of fair value, the methods used to measure fair value, and expanded disclosures about fair value measurement. The Statement emphasizes that fair value is a market based measurement, not an entity specific measurement; as such, a fair value measurement should be determined based on the assumptions that market participants would use in pricing the asset or liability.  As a basis for considering market participant assumptions in fair value measurements, the Statement establishes a fair value hierarchy that distinguishes between (1) market participant assumptions developed based on market data obtained from sources independent of the Trust (observable inputs) and (2) the Trust’s own assumptions about market participant assumptions developed based on the best information available in the circumstances (unobservable inputs).  The three levels defined by the FAS 157 hierarchy are as follows:
 
Level I – Quoted prices (unadjusted) in active markets for identical assets or liabilities that the reporting entity has the ability to access at the measurement date.
 
Level II – Inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly or indirectly.  Level II assets include the following: quoted prices for similar assets or liabilities in active markets, quoted prices for identical or similar assets or liabilities in markets that are not active, inputs other than quoted prices that are observable for the asset or liability, and inputs that are derived principally from or corroborated by observable market data by correlation or other means (market-corroborated inputs).
 
 
Level III – Unobservable pricing input at the measurement date for the asset or liability.  Unobservable inputs shall be used to measure fair value to the extent that observable inputs are not available.
 
 

 
 
In some instances, the inputs used to measure fair value might fall in different levels of the fair value hierarchy.  The level in the fair value hierarchy within which the fair value measurement in its entirety falls shall be determined based on the lowest input level that is significant to the fair value measurement in its entirety.
 
 
The following table summarizes the valuation of the Trust’s securities using the fair value hierarchy:
 
At March 31, 2009
Total
Level I
Level II
Level III
         
    Investments
$53,587,232
$53,587,232
-
-
         
         
 
******************************
 
Annual Meeting of Shareholders — The 2009 Annual Meeting of the Fund’s shareholders will be held on September 10, 2009.
 


ITEM 2. CONTROLS AND PROCEDURES.
 
(a) The registrant’s principal executive officer and principal financial officer have concluded that the registrant’s disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940, as amended (the “Act”) (17CFR 270.30a-3(c)) are effective as of a date within 90 days of the filing date of this report based on their evaluation of these controls and procedures required by Rule 30a-3(b) under the Act (17CFR 270.30a-3(b)) and Rule 13a-15(b) or 15d-15(b) under the Securities Exchange Act of 1934, as amended (17CFR 240.13a-15(b) or 240.15d-15(b)).
 
(b) There were no changes in the registrant’s internal control over financial reporting (as defined in Rule 30a-3(d) under the Act (17CFR 270.30a-3(d)) that occurred during the registrant’s last fiscal quarter of the period covered by this report that have materially affected, or are reasonably likely to materially affect, the registrant’s internal control over financial reporting.
 
 
 
ITEM 3. EXHIBITS.
 
Certifications pursuant to Rule 30a-2(a) under the 1940 Act are filed as Exhibits Ex.99.906 to this Form N-Q.





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.
 
 
Taiwan Greater China Fund
 
 

 
By: /s/ Steven R. Champion
Name: Steven R. Champion
Title: President and Chief Executive Officer (Principal Executive Officer)
 
Date: May 26, 2009


 
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/ Steven R. Champion
Name: Steven R. Champion
Title: President and Chief Executive Officer (Principal Executive Officer)
 
Date: May 26, 2009
 

 
 
By:  /s/ Cheryl Chang
Name: Cheryl Chang
Title: Chief Financial Officer (Principal Financial Officer and Principal Accounting Officer)
 
 Date: May 26, 2009