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 |