[Annotated Form N-Q]

 

 

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

811-06574

 

THE LATIN AMERICAN DISCOVERY FUND, INC.

(Exact name of registrant as specified in charter)

1221 AVENUE OF THE AMERICAS 5th FLOOR NEW YORK, NY

10020

(Address of principal executive offices)

(Zip code)

RONALD E. ROBISON
1221 AVENUE OF THE AMERICAS 5th FLOOR NEW YORK, NY, 10020

(Name and address of agent for service)

 

 

 

Registrant’s telephone number, including area code:

1-800-221-6726

 

 

Date of fiscal year end:

12/31

 

 

Date of reporting period:

9/30/06

 

 


 

Item 1.  Schedule of Investments.

 

The Fund’s schedule of investment as of the close of the reporting period prepared pursuant to Rule 12-12 Regulation S-X is as follows:

 


 

The Latin American Discovery Fund, Inc.
Third Quarter Report
September 30, 2006 (unaudited)

 

Portfolio of Investments

 

 

 

 

 

 

 

Value

 

 

 

 

 

Shares

 

(000)

 

COMMON STOCKS (99.2%)

 

 

 

 

 

 

 

(Unless Otherwise Noted)

 

 

 

 

 

 

 

Argentina (2.7%)

 

 

 

 

 

 

 

Energy Equipment & Services

 

 

 

 

 

 

 

Tenaris SA ADR

 

 

 

126,950

 

$

4,491

 

Metals & Mining

 

 

 

 

 

 

 

Ternium SA ADR

 

(a)

 

59,800

 

1,385

 

 

 

 

 

 

 

5,876

 

Brazil (55.5%)

 

 

 

 

 

 

 

Airlines

 

 

 

 

 

 

 

Tam SA ADR

 

(a)

 

203,330

 

6,486

 

Automobiles

 

 

 

 

 

 

 

Localiza Rent A Car SA

 

 

 

143,800

 

2,983

 

Commercial Banks

 

 

 

 

 

 

 

Banco Bradesco SA ADR

 

 

 

61,200

 

2,041

 

Banco Bradesco SA (Preference)

 

 

 

68,372

 

2,267

 

Banco Itau Holding Financeira SA ADR

 

 

 

100,710

 

3,016

 

Banco Itau Holding Financeira SA ADR (Preference)

 

 

 

245,805

 

7,374

 

Banco Nacional SA (Preference)

 

(a)(c)

 

95,420,000

 

@—

 

Investimentos Itau SA (Preference)

 

 

 

471,429

 

1,936

 

Unibanco SA ADR

 

 

 

153,872

 

1,141

 

Unibanco SA GDR

 

 

 

139,310

 

10,309

 

 

 

 

 

 

 

28,084

 

Diversified Financial Services

 

 

 

 

 

 

 

Bradespar SA (Preference)

 

 

 

33,280

 

1,113

 

Diversified Telecommunication Services

 

 

 

 

 

 

 

Tele Norte Leste Participacoe SA

 

 

 

68,000

 

2,120

 

Tele Norte Leste Participacoe SA (Preference)

 

 

 

15,000

 

206

 

 

 

 

 

 

 

2,326

 

Electric Utilities

 

 

 

 

 

 

 

CPFL Energia SA

 

 

 

63,400

 

817

 

CPFL Energia SA ADR

 

 

 

22,700

 

872

 

Energias do Brasil SA

 

 

 

185,900

 

2,394

 

 

 

 

 

 

 

4,083

 

Health Care Providers & Services

 

 

 

 

 

 

 

Diagnosticos da America ADR

 

(a)

 

100,100

 

1,878

 

Medial Saude SA

 

(a)

 

122,000

 

1,336

 

 

 

 

 

 

 

3,214

 

Household Durables

 

 

 

 

 

 

 

Gafisa SA

 

(a)

 

129,600

 

1,672

 

Independent Power Producers & Energy Traders

 

 

 

 

 

 

 

Tractebel Energia SA

 

 

 

301,300

 

2,439

 

Metals & Mining

 

 

 

 

 

 

 

CVRD ADR

 

 

 

87,900

 

1,895

 

CVRD ADR (Preference)

 

 

 

864,332

 

15,999

 

CVRD, ‘A’ (Preference)

 

 

 

33,606

 

621

 

Gerdau SA

 

 

 

143,647

 

1,617

 

Gerdau SA (Preference)

 

 

 

162,297

 

2,195

 

Gerdau SA ADR

 

 

 

113,122

 

1,533

 

 

 

 

 

 

 

23,860

 

Multiline Retail

 

 

 

 

 

 

 

Lojas Americanas SA (Preference)

 

 

 

74,256,720

 

3,005

 

Oil, Gas & Consumable Fuels

 

 

 

 

 

 

 

Petroleo Brasileiro SA (Preference)

 

 

 

118,712

 

2,214

 

Petroleo Brasileiro SA ADR

 

 

 

65,041

 

5,452

 

Petroleo Brasileiro SA ADR (Preference)

 

 

 

322,011

 

24,099

 

 

 

 

 

 

 

31,765

 

Paper & Forest Products

 

 

 

 

 

 

 

Votorantim Celulose e Papel SA ADR

 

 

 

49,900

 

845

 

 


 

Personal Products

 

 

 

 

 

 

 

Natura Cosmeticos SA

 

 

 

222,140

 

2,728

 

Road & Rail

 

 

 

 

 

 

 

All America Latina Logistica SA

 

 

 

284,000

 

2,220

 

Specialty Retail

 

 

 

 

 

 

 

Lojas Renner SA

 

 

 

32,700

 

1,895

 

Transportation Infrastructure

 

 

 

 

 

 

 

Cia de Concessoes Rodoviarias

 

 

 

231,340

 

2,234

 

 

 

 

 

 

 

120,952

 

Chile (2.3%)

 

 

 

 

 

 

 

Airlines

 

 

 

 

 

 

 

Lan Airlines SA ADR

 

 

 

28,800

 

1,098

 

Electric Utilities

 

 

 

 

 

 

 

Enersis SA ADR

 

 

 

288,600

 

3,809

 

 

 

 

 

 

 

4,907

 

Colombia (1.1%)

 

 

 

 

 

 

 

Commercial Banks

 

 

 

 

 

 

 

BanColombia SA ADR

 

 

 

84,250

 

2,410

 

Mexico (35.2%)

 

 

 

 

 

 

 

Beverages

 

 

 

 

 

 

 

Fomento Economico Mexicano SA de CV ADR

 

 

 

30,000

 

2,909

 

Commercial Banks

 

 

 

 

 

 

 

Grupo Financiero Banorte SA de CV, ‘O’

 

 

 

1,447,700

 

4,531

 

Food & Staples Retailing

 

 

 

 

 

 

 

Wal-Mart de Mexico SA de CV ADR

 

 

 

23,447

 

797

 

Wal-Mart de Mexico SA de CV, ‘V’

 

 

 

4,956,657

 

16,862

 

 

 

 

 

 

 

17,659

 

Household Durables

 

 

 

 

 

 

 

Corp. Geo SA de CV, ‘B’

 

(a)

 

1,367,800

 

5,754

 

Media

 

 

 

 

 

 

 

Grupo Televisa SA ADR

 

 

 

768,000

 

16,328

 

Metals & Mining

 

 

 

 

 

 

 

Grupo Mexico SA de CV, ‘B’

 

 

 

1,328,400

 

4,160

 

Multiline Retail

 

 

 

 

 

 

 

Controladora Comercial Mexicana SA de CV

 

 

 

535,800

 

1,077

 

Wireless Telecommunication Services

 

 

 

 

 

 

 

America Movil SA de CV, ‘L’ ADR

 

 

 

617,757

 

24,321

 

 

 

 

 

 

 

76,739

 

Panama (0.6%)

 

 

 

 

 

 

 

Airlines

 

 

 

 

 

 

 

Copa Holdings SA

 

 

 

34,800

 

1,195

 

Peru (1.8%)

 

 

 

 

 

 

 

Commercial Banks

 

 

 

 

 

 

 

Credicorp Ltd.

 

 

 

72,630

 

3,049

 

Metals & Mining

 

 

 

 

 

 

 

Cia de Minas Buenaventura SA ADR

 

 

 

34,530

 

932

 

 

 

 

 

 

 

3,981

 

TOTAL COMMON STOCKS
(Cost $137,602)

 

 

 

 

 

216,060

 

 

 

 

 

 

 

 

 

 

 

 

 

Face

 

 

 

 

 

 

 

Amount

 

 

 

 

 

 

 

(000)

 

 

 

SHORT-TERM INVESTMENT (0.9%)

 

 

 

 

 

 

 

United States (0.9%)

 

 

 

 

 

 

 

Repurchase Agreement

 

 

 

 

 

 

 

J.P. Morgan Securities, Inc., 5.25%
dated 9/29/06, due 10/2/06,
repurchase price $1,891 (Cost $1,890)

 

(b)

 

$

1,890

 

1,890

 

TOTAL INVESTMENTS + (100.1%)
(Cost $139,492)

 

 

 

 

 

217,950

 

LIABILITIES IN EXCESS OF OTHER ASSETS (-0.1%)

 

 

 

 

 

(140

)

NET ASSETS (100%)

 

 

 

 

 

$

217,810

 

 

(a)

Non-income producing security.

(b)

Represents the Fund’s undivided interest in a joint repurchase agreement which has a total value of $1,401,259,000. The repurchase agreement was fully collateralized by U.S. government agency securities at the date of this Portfolio of

 


 

 

Investments as follows: Federal Farm Credit Bank, 0.00% to 7.43%, due 10/2/06 to 10/23/35; Federal Home Loan Bank, 0.00% to 7.38%, due 10/2/06 to 7/15/36; Federal Home Loan Mortgage Corporation, 0.00% to 6.94%, due 10/10/06 to 9/7/21; Federal National Mortgage Association, 0.00% to 10.35%, due 10/05/06 to 3/11/19; Tennessee Valley Authority, 5.38% to 7.13%, due 11/13/08 to 4/1/36 which had a total value of $1,429,288,878. The investment in the repurchase agreement is through participation in a joint account with affiliated parties pursuant to exemptive relief received by the Fund from the SEC.

(c)

Security has been deemed illiquid at September 30, 2006.

@

Face Amount/Value is less than $500.

ADR

American Depositary Receipt

GDR

Global Depositary Receipt

+

At September 30, 2006, the U.S. Federal income tax cost basis of investments was approximately $139,492,000 and, accordingly, net unrealized appreciation for U.S. Federal income tax purposes was $78,458,000 of which $79,006,000 related to appreciated securities and $548,000 related to depreciated securities.

 


 

Item 2.  Controls and Procedures.

 

(a) The Fund’s principal executive officer and principal financial officer have concluded that the Fund’s disclosure controls and procedures are sufficient to ensure that information required to be disclosed by the Fund in this Form N-Q was recorded, processed, summarized and reported within the time periods specified in the Securities and Exchange Commission’s rules and forms, based upon such officers’ evaluation of these controls and procedures as of a date within 90 days of the filing date of the report.

 

(b)  There were no changes in the Fund’s internal control over financial reporting that occurred during the registrant’s fiscal quarter that has materially affected, or is reasonably likely to materially affect, the Fund’s internal control over financial reporting.

 

Item 3.  Exhibits.

 


 

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 Latin American Discovery Fund, Inc.

 

By:

/s/ Ronald E. Robison

 

Name:

Ronald E. Robison

 

Title:

Principal Executive Officer

 

Date:

November 21, 2006

 

 

Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed by the following persons on behalf of the registrant and in the capacities and on the dates indicated.

 

By:

/s/ Ronald E. Robison

 

Name:

Ronald E. Robison

 

Title:

Principal Executive Officer

 

Date:

November 21, 2006

 

 

 

 

By:

/s/ James Garrett

 

Name:

James Garrett

 

Title:

Principal Financial Officer

 

Date:

November 21, 2006