tgcfmarch312011formnq.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)

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

(Address of principal executive offices)           (Zip code)

Brown Brothers Harriman & Co.
40 Water Street
Boston, MA 02109-3604
(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, 2011



 
ITEM 1.                      SCHEDULE OF INVESTMENTS


TAIWAN GREATER CHINA FUND
            
PORTFOLIO HIGHLIGHTS
          
(Unaudited) / March 31, 2011                  
                   
Security Classifications
      
Ten Largest Holdings
      
     
      
            
Percent of Net Assets
  
Value
(000)
  
Company
     Percent of Net Assets
                   
Common Stock
 99.92
%
 $ 83,054
  
Hon Hai Precision Industry Co., Ltd.
8.99%
Short-Term Securities
0.21
  
        171
  
HTC Corp.
    
7.08
Total Investments
100.13
  
    83,225
  
Taiwan Semiconductor Manufacturing Co., Ltd.
7.06
Liabilities (Net of Other Assets)
      (0.13)
  
       (109)
  
Nan Ya Plastics Corp.
  
6.18
Net Assets
100.00
%
 $ 83,116
  
Formosa Plastics Corp.
  
6.01
         
Formosa Chemicals & Fiber Corp.
4.65
         
MediaTek Inc.
    
4.59
         
China Steel Corp.
    
3.89
         
AU Optronics Corp.
    
3.19
         
Delta Electronics Inc.
    
3.09
                   
                   
                   
Industry Diversification
                
     
Percent of
            
Ten Largest Sectors
  
Net Assets
            
                   
Plastics      
16.84
 %          
Semiconductors
  
16.54
            
Computer Systems & Hardware
    
16.06
            
Electronic Components
  
10.97
            
Computer Peripherals/ODM
  
8.45
            
Financial Services
    
4.62
            
Flat-Panel Displays   
    
4.44
            
Food
  
4.40
            
Steel
4.02
            
Cement
    
3.06
            


SCHEDULE OF INVESTMENTS / (Unaudited) March 31, 2011
        
             
COMMON STOCK — 99.92%
            
             
 
      
% of
  
U.S. Dollar
Shares      
Net Assets
  
Value
Cement — 3.06%
            
865,043
  
Asia Cement Corp.
  
1.17
  
$             972,206
1,303,715
  
Taiwan Cement Corp.
  
1.89
  
1,573,839
           
2,546,045
Computer Peripherals/ODM — 8.45%
        
165,909
  
Chicony Electronics Co., Ltd.
  
0.36
  
297,324
150,535
  
HTC Corp.
  
7.08
  
5,886,872
680,896
  
Lite-on Technology Corp.
  
1.01
  
838,183
           
7,022,379
Computer Systems & Hardware — 16.06%
        
412,828
  
Acer Inc.
  
1.01
  
842,306
146,834
  
Asustek Computer Inc.
  
1.53
  
1,270,760
761,078
  
Compal Electronics Inc.
  
0.91
  
755,721
2,132,363
  
Hon Hai Precision Industry Co., Ltd.
  
8.99
  
7,468,745
972,046
  
Quanta Computer Inc.
  
2.21
  
1,834,548
739,369
  
Wistron Corp.
  
1.41
  
1,171,646
           
13,343,726
Electrical & Machinery — 0.73%
            
332,000
  
Teco Electric & Machinery Co., Ltd.
  
0.28
  
232,571
718,837
*
Walsin Lihwa Corp.
  
0.45
  
377,666
           
610,237
Electronic Components — 10.97%
            
251,343
  
Catcher Technology Co., Ltd.
  
1.50
  
1,243,595
398,000
  
Coretronic Corp.
  
0.77
  
642,874
648,991
  
Delta Electronics Inc.
  
3.09
  
2,571,070
205,658
*
E Ink Holdings Inc.
  
0.40
  
332,541
130,715
  
Everlight Electronics Co.
  
0.45
  
369,827
245,678
  
Foxconn Technology Co., Ltd.
  
1.13
  
935,693
745,093
*
Pegatron Corp.
  
1.02
  
844,998
132,020
  
Shin Zu Shing Co., Ltd.
  
0.42
  
349,276
85,210
  
Simplo Technology Co., Ltd.
  
0.64
  
533,160
230,170
  
TXC Corp.
  
0.51
  
427,357
475,926
  
WPG Holdings Co., Ltd.
  
0.96
  
801,113
9,478
  
Young Fast Optoelectronics Co., Ltd.
  
0.08
  
69,618
           
9,121,122
Electronics/Other — 2.34%
            
198,950
  
Lumax International Corp., Ltd.
  
0.47
  
392,393
663,766
  
Synnex Technology International Corp.
  
1.87
  
1,548,419
           
1,940,812
Financial Services — 4.62%
            
1,428,550
  
Cathay Financial Holding Co., Ltd.
  
2.84
  
2,358,490
1,114,557
  
Fubon Financial Holding Co., Ltd.
  
1.78
  
1,480,037
           
3,838,527
Flat-Panel Displays — 4.44%
            
3,031,292
*
AU Optronics Corp.
  
3.19
  
2,649,172
1,015,732
*
Chimei Innolux Corp.
  
1.25
  
1,041,396
           
3,690,568
             
Food — 4.40%
            
151,943
  
Great Wall Enterprises Co.
  
0.20
  
162,241
416,000
  
Tingyi (Cayman Islands) Holdings Corp.
  
1.23
  
1,020,669
1,378,992
  
Uni-President Enterprise Corp.
  
2.27
  
1,889,801
742,000
  
Want Want China Holdings, Ltd.
  
0.70
  
581,422
           
3,654,133
Glass, Paper & Pulp — 0.98%
            
643,995
  
Taiwan Glass Industrial Corp.
  
0.98
  
814,657
             
Hotels — 0.15%
            
7,470
  
Formosa International Hotels Corp.
  
0.15
  
127,264
             
Plastics — 16.84%
            
1,018,897
  
Formosa Chemicals & Fiber Corp.
  
4.65
  
3,863,264
1,419,271
  
Formosa Plastics Corp.
  
6.01
  
4,995,224
1,743,968
  
Nan Ya Plastics Corp.
  
6.18
  
5,141,702
           
14,000,190
Retailing — 0.71%
            
86,046
  
Far Eastern Department Stores Co., Ltd.
  
0.16
  
135,914
102,445
  
President Chain Store Corp.
  
0.55
  
454,622
           
590,536
Rubber — 1.35%
            
484,192
  
Cheng Shin Rubber Ind. Co., Ltd.
  
1.35
  
1,122,926
             
Semiconductors — 16.54%
            
2,240,434
  
Advanced Semiconductor Engineering Inc.
  
2.92
  
2,430,368
332,044
  
MediaTek Inc.
  
4.59
  
3,816,468
95,851
  
Powertech Technology Inc.
  
0.36
  
300,196
473,193
  
Siliconware Precision Industries Co., Ltd.
  
0.71
  
592,155
2,444,284
  
Taiwan Semiconductor Manufacturing Co., Ltd.
  
7.06
  
5,868,210
1,428,397
  
United Microelectronics Corp.
  
0.90
  
743,173
           
13,750,570
Steel — 4.02%
            
2,708,513
  
China Steel Corp.
  
3.89
  
3,237,468
91,004
  
Tung Ho Steel Enterprise Corp.
  
0.13
  
105,682
           
3,343,150
Textiles — 1.52%
            
816,080
  
Far Eastern New Century Corp.
  
1.52
  
1,261,293
             
Transportation — 0.37%
            
144,000
  
U-Ming Marine Transport Corp.
  
0.37
  
306,539
             
             
             
Other Non-Tech — 2.37%
            
273,263
  
Giant Manufacturing Co., Ltd.
  
1.34
  
1,110,448
341,900
  
Merida Industry Co., Ltd.
  
0.76
  
633,643
243,709
  
Pou Chen Corp.
  
0.27
  
225,004
           
1,969,095
             
TOTAL COMMON STOCK (COST $68,002,318)
  
99.92
  
83,053,769
             
SHORT TERM SECURITIES — 0.21%
       
             
Time Deposit — 0.21%
            
Citibank - London, 0.03%, Due 04/01/11 
  
0.21
  
170,869
             
TOTAL SHORT-TERM SECURITIES
     
170,869
(COST $170,869)
            
             
TOTAL INVESTMENTS IN SECURITIES AT FAIR VALUE
     
(COST $68,173,187)
      
100.13
  
83,224,638
             
LIABILITIES (NET OF OTHER ASSETS)
  
(0.13)
  
(108,482)
             
NET ASSETS
      
100.00
  
 $     83,116,156
             
At March 31, 2011, 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, 2011, the unrealized appreciation of $15,051,451 for financial reporting purposes consisted of $22,615,785 of gross unrealized appreciation and $7,564,334 of gross unrealized depreciation.
             
*Non-income producing: These stocks did not pay a cash dividend during the past year.
      

— Fair Value Measurements and Disclosures — In January 2010, the Financial Accounting Standards Board issued Accounting Standards Update (“ASU”) No. 2010-06 “Improving Disclosures about Fair Value Measurements.” This ASU will add new requirements for disclosures into and out of Levels I and II fair-valued measurements and information on purchases, sales, issuances and settlements on a gross basis in the reconciliation of Level III fair-valued measurements. It also clarifies existing fair value disclosures about the level of disaggregation, inputs and valuation techniques. Except for the detailed Level III reconciliation disclosures, the guidance in the ASU is effective for annual and interim reporting periods in fiscal years beginning after December 15, 2009 and has been incorporated in these financial statements.  The new disclosures for Level III activity are effective for annual and interim reporting periods in fiscal years beginning after December 15, 2010.
 
The Trust values its investments in accordance with Accounting Standards Codification 820 – Fair Value Measurements and Disclosures (“ASC 820”). ASC 820 defines fair value, establishes a framework for measuring fair value in GAAP, and expands disclosures about fair value measurement. The changes to current practices, resulting from the application of ASC 820, relate to the definition of fair value, the methods used to measure fair value, and expanded disclosures about fair value measurement. ASC 820 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, ASC 820 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 ASC 820 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 I 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 at March 31, 2011 using the fair value hierarchy:
 
At March 31, 2011
  
Level I*
Level II*
Level III
Total
           
 Investments, at value
  
$83,224,638
-
-
$83,224,638
    Common Stocks
  
83,053,769
-
-
83,053,769
    Time Deposits
  
170,869
-
-
170,869
 
*At March 31, 2011, there were no significant transfers in or out of Level I and Level II fair value measurements.

— Subsequent Events — Management of the Fund has performed an evaluation of the subsequent events through the date the financial statements were issued.  This evaluation did not result in any subsequent events that necessitated disclosures and/or adjustments.


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”) (17 CFR 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 (17 CFR 270.30a-3(b)) and Rule 13a-15(b) under the Securities Exchange Act of 1934, as amended (17 CFR 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 (17 CFR 270.30a-3(d)) 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.
 
Certifications pursuant to Rule 30a-2(a) under the 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/ Frederick C. Copeland Jr.
Name: Frederick C. Copeland Jr.
Title: Chief Executive Officer (Principal Executive Officer)
Date:  May 27, 2011


 
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/ Frederick C. Copeland Jr.
Name: Frederick C. Copeland Jr.
Title: Chief Executive Officer (Principal Executive Officer)
Date: May 27, 2011
 

 
 
By:  /s/ Jon Kathe
Name: Jon Kathe
Title: Chief Financial Officer (Principal Financial Officer and Principal Accounting Officer)
Date:  May 27, 2011