UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, DC 20549

 

FORM N-Q

QUARTERLY SCHEDULE OF PORTFOLIO HOLDINGS OF REGISTERED

MANAGEMENT INVESTMENT COMPANY

_______________________________

Investment Company Act file number: 811-06041

The Central and Eastern Europe Fund, Inc.

(Exact name of registrant as specified in charter)

 

345 Park Avenue
New York, NY 10154-0004

(Address of principal executive offices) (Zip code)

 

Paul Schubert

345 Park Avenue

New York, NY 10154-0004

(Name and address of agent for service)

Registrant's telephone number, including area code: (212) 250-3220

Date of fiscal year end: 10/31

Date of reporting period: 7/31/2017

 

ITEM 1. SCHEDULE OF INVESTMENTS

 

 

The Central and Eastern Europe Fund, Inc.
(formerly The Central Europe, Russia and Turkey Fund, Inc.)

 

Schedule of Investments                                                                                   as of July 31, 2017 (Unaudited)

 

 

  Shares Value ($)
Russia  45.2%
Common Stocks  44.0%
Banks 10.7%    
Bank St Petersburg PJSC 2,180,620 2,011,622
Sberbank of Russia PJSC 2,000,000 5,469,600
Sberbank of Russia PJSC (ADR) 900,000 10,485,000
VTB Bank PJSC (GDR) (Registered) 1,100,000 2,123,000
    20,089,222
Capital Markets 1.7%    
Moscow Exchange MICEX-RTS PJSC 1,780,000 3,167,332
     
Diversified Telecommunication Services 0.5%    
Rostelecom PJSC 800,000 866,320
     
Electric Utilities 1.5%    
Inter RAO UES PJSC 18,000,000 1,130,400
RusHydro PJSC (ADR) 1,410,151 1,762,689
    2,893,089
Energy Equipment & Services 1.6%    
TMK PJSC (GDR) (Registered) 581,037 3,038,824
     
Food & Staples Retailing 2.6%    
Magnit PJSC 14,500 2,295,705
X5 Retail Group NV (GDR) (Registered)* 70,019 2,708,335
    5,004,040
Metals & Mining 5.9%    
Alrosa PJSC 2,920,000 4,059,968
MMC Norilsk Nickel PJSC (ADR) 345,000 5,157,750
Polyus PJSC (GDR) (Registered) 59,013 1,923,824
    11,141,542
Oil, Gas & Consumable Fuels 16.5%    
Gazprom PAO (ADR) 2,500,000 9,687,500
Lukoil PJSC (ADR) 275,000 12,897,500
Novatek PJSC (GDR) (Registered) 37,500 3,922,500
Rosneft Oil Co PJSC (GDR) (Registered) 500,000 2,565,000
Tatneft PAO (ADR) 52,038 2,007,626
    31,080,126
Specialty Retail 1.4%    
Detsky Mir PJSC 1,774,157 2,668,864
     
Wireless Telecommunication Services 1.6%    
MegaFon PJSC (GDR) (Registered) 140,000 1,348,200
Mobile Telesystems PJSC (ADR) 200,527 1,711,498
    3,059,698
Preferred Stocks  1.2%
Oil, Gas & Consumable Fuels 1.2%    
Surgutneftegas OJSC (Cost $ 2,813,275) 4,600,000 2,202,020
     
Total Russia (Cost $71,219,401)   85,211,077
     
Poland  19.5%
Common Stocks
Banks 3.0%    
Bank Pekao SA 159,000 5,626,215
     
Consumer Finance 0.1%    
KRUK SA 1,899 180,872
     
Diversified Telecommunication Services 1.8%    
Orange Polska SA* 2,299,935 3,470,567
     
Electric Utilities 0.5%    
PGE Polska Grupa Energetyczna SA 253,000 917,656
     
Insurance 1.8%    
Powszechny Zaklad Ubezpieczen SA 285,000 3,494,933

 

 

Shares Value ($)
Media 1.9%    
Cyfrowy Polsat SA 515,000 3,650,359
     
Metals & Mining 2.9%    
Jastrzebska Spolka Weglowa SA* 76,962 1,763,965
KGHM Polska Miedz SA 110,000 3,724,839
    5,488,804
Oil, Gas & Consumable Fuels 4.2%    
Polski Koncern Naftowy ORLEN SA 150,000 4,416,895
Polskie Gornictwo Naftowe i Gazownictwo SA 1,850,000 3,421,657
    7,838,552
Paper & Forest Products 1.2%    
Pfleiderer Group SA 173,360 2,183,500
     
Software 0.3%    
Asseco Poland SA 40,000 500,817
     
Textiles, Apparel & Luxury Goods 1.8%    
CCC SA 51,000 3,445,469
     
Total Poland (Cost $33,268,994)   36,797,744
     
Hungary  12.1%
Common Stocks
Banks 3.5%    
OTP Bank PLC 176,478 6,534,703
     
Diversified Telecommunication Services 1.0%    
Magyar Telekom Telecommunications PLC 1,109,194 1,993,439
     
Oil, Gas & Consumable Fuels 4.2%    
MOL Hungarian Oil & Gas PLC 91,667 7,892,778
     
Pharmaceuticals 3.4%    
Richter Gedeon Nyrt 250,000 6,366,682
     
Total Hungary (Cost $17,696,144)   22,787,602
     
Turkey  7.7%
Common Stocks
Airlines 2.3%    
Turk Hava Yollari AO* 1,715,000 4,295,283
     
Banks 1.6%    
Turkiye Garanti Bankasi AS 1,030,000 3,079,249
     
Beverages 1.0%    
Coca-Cola Icecek AS 146,369 1,764,432
     
Metals & Mining 2.0%    
Koza Altin Isletmeleri AS* 412,771 3,781,627
     
Textiles, Apparel & Luxury Goods 0.8%    
Mavi Giyim Sanayi Ve Ticaret AS "B" 144A* 129,589 1,537,160
     
Total Turkey (Cost $9,724,710)   14,457,751
     
Czech Republic  3.6%
Common Stocks
Banks 2.1%    
Komercni banka as 25,000 1,074,222
Moneta Money Bank AS 144A 820,000 2,943,932
    4,018,154
Electric Utilities 1.5%    
CEZ AS 153,000 2,766,536
     
Total Czech Republic (Cost $6,619,458)   6,784,690
     
  Shares Value ($)
Austria  3.5%
Common Stocks
Banks 2.7%    
Erste Group Bank AG 125,000 5,174,195
     
Hotels, Restaurants & Leisure 0.8%    
DO & CO AG 20,578 1,501,530
     
Total Austria (Cost $6,160,443)   6,675,725
     
Greece  1.2%
Common Stocks
Oil, Gas & Consumable Fuels 1.2%    
Motor Oil Hellas Corinth Refineries SA (Cost $1,481,650) 96,842 2,174,698
     
     
Netherlands  0.9%
Common Stocks
Hotels, Restaurants & Leisure 0.9%    
DP Eurasia NV 144A* (Cost $1,389,438) 654,399 1,682,381
     
     
Sweden  0.7%
Common Stocks
Health Care Providers & Services 0.7%    
Medicover AB "B"* (Cost $994,227) 152,849 1,209,592
     
     
Kazakhstan  0.5%
Common Stocks
Metals & Mining 0.5%    
Altyn PLC* (Cost $1,824,443) 50,000,000 1,021,760
     
     
Securities Lending Collateral  4.9%
Deutsche Government & Agency Securities Portfolio "Deutsche Government Cash Institutional Shares", 0.91% (Cost $9,305,557) (a) (b) 9,305,557 9,305,557
     
Cash Equivalents  4.1%

Deutsche Central Cash Management Government Fund, 1.06%

(Cost $7,739,324) (b)

7,739,324 7,739,324
     
     
  % of Net Assets Value ($)
Total Investment Portfolio (Cost $167,423,789)** 103.9 195,847,901
Other Assets and Liabilities, Net (3.9) (7,314,287)
Net Assets 100.0 188,533,614
 

 

For information on the Fund’s policies regarding the valuation of investments and other significant accounting policies, please refer to the Fund’s most recent semi-annual or annual financial statements.

 

 

*     Non-income producing security.
**     The cost for federal income tax purposes was $171,138,810. At July 31, 2017, net unrealized appreciation for all securities based on tax cost was $24,709,091. This consisted of aggregate gross unrealized appreciation for all securities in which there was an excess of value over tax cost of $35,108,720 and aggregate gross unrealized depreciation for all securities in which there was an excess of tax cost over value of $10,399,629.
   

All or a portion of these securities were on loan. The value of all securities loaned at July 31, 2017 amounted to

$8,903,586, which is 4.7% of net assets.

(a)     Represents collateral held in connection with securities lending. Income earned by the Fund is net of borrower rebates.
(b)     Affiliated fund managed by Deutsche Investment Management Americas Inc. The rate shown is the annualized seven-day yield at period end.
144A:     Securities exempt from registration under Rule 144A of the Securities Act of 1933. These securities may be resold in transactions exempt from registration, normally to qualified institutional buyers.

 

 

ADR : American Depositary Receipt
GDR : Global Depositary Receipt
OJSC : Open Joint Stock Company
PJSC : Public Joint Stock Company
 
For purposes of its industry concentration policy, the Fund classifies issuers of portfolio securities at the industry sub-group level.  Certain of the categories in the above Schedule of Investments consist of multiple industry sub-groups or industries.
 

 

 

 

Fair Value Measurements

 
Various inputs are used in determining the value of the Fund’s investments. These inputs are summarized in three broad levels. Level 1 includes quoted prices in active markets for identical securities. Level 2 includes other significant observable inputs (including quoted prices for similar securities, interest rates, prepayment speeds and credit risk). Level 3 includes significant unobservable inputs (including the Fund’s own assumptions in determining the fair value of investments). The level assigned to the securities valuations may not be an indication of the risk associated with investing in those securities.
 
The following is a summary of the inputs used as of July 31, 2017 in valuing the Fund’s investments.  
         
Assets Level 1 Level 2 Level 3 Total
  Common Stocks and/or Other Equity Investments (c)  
Russia $ 85,211,077 $ $ $ 85,211,077
Poland   36,797,744       36,797,744
Hungary   22,787,602       22,787,602
Turkey   14,457,751       14,457,751
Czech Republic   6,784,690       6,784,690
Austria   6,675,725       6,675,725
Greece   2,174,698       2,174,698
Netherlands   1,682,381       1,682,381
Sweden   1,209,592       1,209,592
Kazakhstan   1,021,760       1,021,760
Short-Term Instruments (c) 17,044,881 17,044,881

Total

$ 195,847,901 $ $ $ 195,847,901
         
There have been no transfers between fair value measurement levels during the period ended July 31, 2017.
 
(c) See Schedule of Investments for additional detailed categorizations.

  

ITEM 2. CONTROLS AND PROCEDURES
   
  (a) The Chief Executive and Financial Officers concluded that the Registrant’s Disclosure Controls and Procedures are effective based on the evaluation of the Disclosure Controls and Procedures as of a date within 90 days of the filing date of this report.
   
  (b) There have been no changes in the registrant’s internal control over financial reporting that occurred during the registrant’s last fiscal quarter that has materially affected, or is reasonably likely to materially affect, the registrant’s internal controls over financial reporting.
   
ITEM 3. EXHIBITS
   
  Certification pursuant to Rule 30a-2(a) under the Investment Company Act of 1940 (17 CFR 270.30a-2(a)) is filed and attached hereto as Exhibit 99.CERT.

 

 

 

 

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: The Central and Eastern Europe Fund, Inc.
   
By:

/s/Brian E. Binder

Brian E. Binder

President

   
Date: September 22, 2017

 

 

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/Brian E. Binder

Brian E. Binder

President

   
Date: September 22, 2017
   
   
   
By:

/s/Paul Schubert

Paul Schubert

Chief Financial Officer and Treasurer

   
Date: September 22, 2017