UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
-----------------------
FORM N-CSR S
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CERTIFIED SHAREHOLDER REPORT OF REGISTERED MANAGEMENT
INVESTMENT COMPANIES
INVESTMENT COMPANY ACT FILE NUMBER 811-06115
THE SINGAPORE FUND, INC.
(Exact name of registrant as specified in charter)
c/o Daiwa Securities Trust Company
One Evertrust Plaza, 9th Floor
Jersey City, New Jersey 07302-3051
(Address of principal executive offices) (Zip code)
c/o Daiwa Securities Trust Company
One Evertrust Plaza, 9th Floor
Jersey City, New Jersey 07302-3051
(Name and address of agent for service)
REGISTRANT'S TELEPHONE NUMBER, INCLUDING AREA CODE: (201) 915-3054
DATE OF FISCAL YEAR END: October 31
DATE OF REPORTING PERIOD: April 30, 2006
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Item 1. Reports to Stockholders.
General Information (unaudited)
The Fund
The Singapore Fund, Inc. (the "Fund") is a non-diversified, closed-end
management investment company. Its primary investment objective is capital
appreciation, which it seeks through investment primarily in Singapore equity
securities, and to a lesser degree, investment in equity securities issued by
companies in ASEAN Group countries. The ASEAN Group currently is composed of
Brunei, Cambodia, Indonesia, Laos, Malaysia, Myanmar (formerly Burma), the
Philippines, Singapore, Thailand and Vietnam. The Fund's Investment Manager is
DBS Asset Management (United States) Pte. Ltd. (the "Manager"), an indirectly
wholly-owned subsidiary of The Development Bank of Singapore, Ltd. Daiwa SB
Investments (Singapore) Ltd. provides the Manager with advice regarding
investments.
Shareholder Information
The Fund's shares are listed on the New York Stock Exchange ("NYSE"). The
Fund understands that its shares may trade periodically on certain exchanges
other than the NYSE, but the Fund has not listed its shares on those other
exchanges and does not encourage trading on those exchanges. The Fund's NYSE
trading symbol is "SGF". Weekly comparative net asset value ("NAV") and market
price information about the Fund is published each Monday in The Wall Street
Journal, each Sunday in The New York Times and each Saturday in Barron's, and
also in many other newspapers. The Fund's daily NAV is also available by
visiting www.daiwast.com or calling (800) 933-3440 or (201) 915-3020. Also, the
Fund's website includes a monthly market review, a list of the Fund's top ten
industries and holdings, its proxy voting policies and procedures, its code of
ethics and its audit committee charter.
Inquiries
Inquiries concerning your registered share account should be directed to
the American Stock Transfer & Trust Company (the "Plan Agent") at the number
noted below. All written inquiries should be directed to The Singapore Fund,
Inc., c/o Daiwa Securities Trust Company, One Evertrust Plaza, 9th Floor, Jersey
City, NJ 07302-3051.
Restriction on Beneficial Ownership by Singapore Residents
The Fund expects to continue to qualify for a Singapore income tax
exemption granted to non-Singapore resident investors with respect to certain
types of income derived from Singapore sources. In order for the Fund to be
treated as a non-Singapore resident, and therefore qualify for this exemption,
not more than 5% of the Fund's issued share capital may be beneficially owned,
directly or indirectly, by Singapore residents. For this reason, the Fund's
Board of Directors has restricted, and in the future may prohibit, the transfer
of the Fund's shares to residents of Singapore.
Proxy Voting Policies and Procedures
A description of the policies and procedures that are used by the Fund's
Investment Manager to vote proxies relating to the Fund's portfolio securities
is available (1) without charge, upon request, by calling (201) 915-3054; (2) by
visiting www.daiwast.com; and (3) as an exhibit to the Fund's annual report on
Form N-CSR which is available on the website of the Securities and Exchange
Commission (the "Commission") at www.sec.gov. Information regarding how the
Investment Manager votes these proxies is now available by calling the same
number and the Commission's website. The Fund has filed its report on Form N-PX
covering the Fund's proxy voting record for the 12-month period ended June 30,
2005.
Quarterly Portfolio of Investments
A Portfolio of Investments is filed as of the end of the first and third
quarter of each fiscal year on Form N-Q and is available on the Commission's
website at www.sec.gov and the Fund's web site at www.daiwast.com. Additionally,
the Portfolio of Investments may be reviewed and copied at the Commission's
Public Reference Room in Washington D.C. Information on the operation of the
Public Reference Room may be obtained by calling (800) SEC-0330. The quarterly
Portfolio of Investments are available without charge, upon request, by calling
(201) 915-3054.
Certifications
The Fund's chief executive officer has certified to the NYSE that, as of
June 1, 2006, he was not aware of any violation by the Fund of applicable NYSE
corporate governance listing standards. The Fund also has included the
certifications of the Fund's chief executive officer and chief financial officer
required by Section 302 and Section 906 of the Sarbanes-Oxley Act of 2002 in the
Fund's Form N-CSR filed with the Commission for the period of this report.
Dividend Reinvestment and Cash Purchase Plan
A Dividend Reinvestment and Cash Purchase Plan (the "Plan") is available to
provide Shareholders with automatic reinvestment of dividends and capital gain
distributions in additional Fund shares. The Plan also allows you to make
optional semi-annual cash investments in Fund shares through the Plan Agent. A
brochure fully describing the Plan's terms and conditions is available on the
Fund's web site at www.daiwast.com and from the Plan Agent by calling (866)
669-9903 or by writing The Singapore Fund, Inc., c/o the American Stock Transfer
& Trust Company, 59 Maiden Lane, New York, NY 10038.
Shareholder Letter (unaudited)
May 11, 2006
Dear Shareholders:
We are pleased to present the Semi-Annual Report of The Singapore Fund,
Inc. (the "Fund") for the six months ended April 30, 2006.
Performance Review
- -------------------------------------------------------- ----------- -----------
Nov'05 Feb'06
to to
US$ Terms Jan'06 Apr'06
- -------------------------------------------------------- ----------- -----------
Singapore Fund 16.89% 14.57%
- -------------------------------------------------------- ----------- -----------
Straits Times Index ("STI") 13.44% 11.34%
- -------------------------------------------------------- ----------- -----------
Relative to Benchmark Index +3.45% +3.23%
- -------------------------------------------------------- ----------- -----------
Annualized performance computed on compounded basis.
Source: Bloomberg
In the first quarter ended January 31, 2006, the Fund outperformed the
Straits Times Index ("STI") benchmark by 3.45 percentage points. In the second
quarter ended April 30, 2006, the Fund out-performed the STI benchmark by 3.23
percentage points. For the six months ended April 30, 2006, the Fund's net asset
value ("NAV") rose 33.68% compared to the STI's rise of 26.30% over the same
period. The out-performance was mainly attributable to the Fund's investments in
the technology, consumer, industrial, real estate and transport sectors.
Market Review
The market as represented by the STI rose strongly by 13.44% for the first
quarter ended January 31, 2006. The quarter saw the technology, energy and
offshore and marine sectors out-performing the STI.
The strong equity market in the first quarter was supported by strong
macro-economic news flow such as calendar fourth quarter 2005 Gross Domestic
Product ("GDP") growth rising at a better than expected 8.7% and full year 2005
growth revised up to 6.4% from 5.7%. This strong growth momentum is generally
expected to flow through to 2006 on expectations of stronger employment and
domestic demand growth augmenting continued export growth in 2006. The
government revised its 2006 GDP growth forecast upwards from 3% to 5% to 4% to
6%. The market was expected to also benefit from a pre-election annual budget
and pre-election market rally, an expected peaking of domestic and U.S. interest
rates in the first half of 2006 and positive news flow from the integrated
resorts/casinos projects and property sector.
Continuing its upward momentum from the previous quarter, the STI rose
another 11.34% during the second quarter ended April 30, 2006 with the real
estate sector adding to continued performance of technology stocks such as
Chartered Semiconductor and Stats Chippac, which gained 32.4% and 21.9%,
respectively. Boosted by positive sentiment as a result of the submission of
exciting iconic proposals/bids for the Marina Integrated Resort Project and high
transaction prices for selective high-end property transactions, shares of
Keppel Land, Capitaland, Wing Tai Holdings and City Development rose between
21.6% and 34.3% during the second quarter.
The 2006 budget turned out to be stock market neutral with few new
significant business stimuli. It was more socially focused with U.S.$1.6 billion
in special transfer payments to help the elderly and lower income Singaporeans.
The main impact of the budget will be to stimulate consumer demand and the
domestic economy. During the second quarter, Temasek announced that it had
bought a 11.55% stake in Standard Chartered Bank from the late Khoo Teck Puat's
family, which raised market speculation of a possible merger of Temasek's 28%
stake in DBS Group Holdings Ltd. into Standard Chartered Bank. Finally, general
elections were called for May 6, 2006. Though widely expected, news of the
general election still breathed positive sentiment into the stock market.
Despite recent strength of the Singapore Dollar ("S$"), the Monetary Authority
of Singapore announced that it will not change its policy of a modest and
gradual appreciation of the S$.
Macro economic data was generally favorable during the second quarter.
Manufacturing production recovered to 25.2% year-on-year in March and 37.2% in
February after sharp declines, mainly in bio-medical production which caused
sharp dips to 1.3% in January 2006 and 5.2% in December 2005. As a result, first
quarter 2006 manufacturing production rose by a better than expected 20.0%
year-on-year thereby raising prospects that first quarter 2006 GDP growth may be
revised upwards to above 10% from the government's earlier advance estimate of
9.1% growth. Similarly non-oil domestic exports were strong, growing at 16.8%
year-on-year in March, 16.5% in February and 17.5% in January.
In contrast, weak car sales were the reason that retail sales were
generally weak, growing at 4.7% year-on-year in February, 4.8% in January and
7.4% in December 2005. Singapore's Purchasing Managers Index (PMI) in March
declined for the third consecutive month this year to 49.6 from 50.8 in
February. A PMI level below 50 indicates that the economy may be contracting.
However, the electronics sub-sector's PMI continued to stay in expansionary
territory at 52.3 (0.4 points rise), signaling at least short term optimism for
the current technology cycle. Inflation remains low with the Consumer Price
Index (CPI) gaining 1.2% year-on-year for both March and February and 1.7% in
January. Unemployment held at 2.6% at the end of the first quarter of 2006,
unchanged from the 2.6% (revised) at the end of the fourth quarter of 2005.
Outlook & Strategy
- ------------------------------------ ---------------- ------------- ------------------------------------------------
Benchmark (%) Portfolio (%) Comments
- ------------------------------------ ---------------- ------------- ------------------------------------------------
Telecommunication & Media 14.6 10.9 Defensive exposure with expectations for
higher dividend yields. Earnings growth in the
shorter term may however prove to be
disappointing.
- ------------------------------------ ---------------- ------------- ------------------------------------------------
Finance 33.6 21.9 Banking sector to show improving earnings
growth driven by asset divestments, steepening
of the yield curve, interest margin expansion
and better loan growth led by property and
construction. On-going capital restructuring
of United Overseas Bank and Oversea-Chinese
Banking Corp. provide potential for return on
equity (ROE) improvements and higher
dividends. Sector limit of 25% is applicable.
- ------------------------------------ ---------------- ------------- ------------------------------------------------
Real Estate 15.5 10.5 Recovery of the high end residential property
market quite extended with the mid- and lower
end yet to catch up. Sector is long term
beneficiary of stronger economic growth and
government's measures to boost tourism through
Orchard Road rejuvenation and the Integrated
Resorts cum Casinos projects.
- ------------------------------------ ---------------- ------------- ------------------------------------------------
Conglomerate 10.0 6.7 Underweight due to profit-taking after
stronger than expected performance.
- ------------------------------------ ---------------- ------------- ------------------------------------------------
Transport 7.2 9.7 Overweight in marine (leveraged on continued
strong China demand) and domestic land
transport with more assured growth and
dividend yield prospects. High fuel cost
continues to be a main drag on air transport
(SIA) earnings although potential divestment
of non-core assets increases prospects for
higher dividends.
- ------------------------------------ ---------------- ------------- ------------------------------------------------
Technology 6.4 7.9 Looking towards building up exposure for the
next tech industry up cycle.
- ------------------------------------ ---------------- ------------- ------------------------------------------------
Industrials 5.6 12.3 Overweight on attractive stock valuations with
good prospects of out-performance from strong
earnings growth from resilient sectoral and
China demand.
- ------------------------------------ ---------------- ------------- ------------------------------------------------
Consumer 5.0 9.3 Overweight on attractive stock valuations with
expected pick-up in domestic consumption
spending and rising China consumption fueling
strong earnings growth and strong capacity
expansion prospects.
- ------------------------------------ ---------------- ------------- ------------------------------------------------
We remain cautious as the Singapore market has performed so well for the
financial year to date, with the STI up 26.30% for the six month period November
1, 2005 to April 30, 2006 compared to its 9.8% performance for the whole year
ended October 31, 2005. However exchange translation gain is estimated to
account for about 8.5 percentage points of this year's first half performance
compared to an estimated exchange translation loss of about 2.0 percentage
points in last year's end October 31, 2005 performance.
Risks of a U.S. hard economic landing and an outbreak of avian flu pandemic
add to increased risk that China might act more drastically to slow its growth
more sharply than expected. Increasing tensions between Iran and the U.S. over
Iran's nuclear program raises risk of military action disrupting oil supplies,
causing oil prices to spike up further. Also, tightening liquidity conditions in
the EU and Japan and rapidly changing views of when the Federal Reserve will be
ending its interest rate hikes looks set to add to market volatility ahead.
Portfolio Management
Mr. Lim Chi Teong has been the Fund's portfolio manager since April 15,
2005 and is responsible for the day-to-day management of the Fund's portfolio.
Chi Teong joined DBS Asset Management Ltd., of which the Fund's Investment
Manager, DBS Asset Management (United States) Pte. Ltd., is a wholly owned
subsidiary, in February 2005. Prior to this, he was the Director of Investment
Management at Pheim Asset Management Malaysia and Advisor to Pheim Asset
Management Singapore.
Mr. Teo Chon Kiat supports Chi Teong as the alternate portfolio manager.
Prior to joining DBSAM in 1998, Chon Kiat was a quantitative analyst with
Koeneman Capital Management.
The Fund's management would like to thank you for your participation in The
Singapore Fund, Inc. and would be pleased to hear from you.
Sincerely,
/s/ MASAMICHI YOKOI
- ----------------------------
MASAMICHI YOKOI
Chairman of the Board
Portfolio of Investments
April 30, 2006 (unaudited)
COMMON STOCKS--94.87%
Shares Value
- ------------------------------------------------------------- -----------------
MALAYSIA--2.36%
Banks & Financial Services--1.37%
1,200,000 AmInvestment Group Berhad . . . . . . . . . . . . $ 588,349
1,500,000 AMMB Holdings Berhad. . . . . . . . . . . . . . . 1,177,524
----------------
1,765,873
----------------
Machinery--0.99%
1,700,000 CB Industrial Product Holdings Berhad . . . . . . 1,268,971
----------------
Total Malaysia Common Stocks. . . . . . . . . . . . . . . . . 3,034,844
----------------
SINGAPORE--92.51%
Agricultural Biotechnology--2.32%
5,600,000 China Sun Bio-chem Technology Group Co., Ltd. . . 2,988,789
----------------
Apparel & Sports Footwear--0.55%
700,000 China Honxing Sports, Ltd.* . . . . . . . . . . . 707,406
----------------
Banks & Financial Services--20.46%
2,650,000 Oversea-Chinese Banking Corp. Ltd. . . . . . . . 11,381,652
1,450,000 United Overseas Bank Ltd. . . . . . . . . . . . . 14,928,154
----------------
26,309,806
----------------
Building Materials--1.48%
1,800,000 Hong Leong Asia Ltd. . . . . . . . . . . . . . . 1,909,995
----------------
Chemicals--0.74%
1,548,000 China Sky Chemical Fibre Co., Ltd. . . . . . . . 948,404
----------------
Communications--Media--2.59%
1,230,000 Singapore Press Holdings Ltd. . . . . . . . . . . 3,325,059
----------------
Shares Value
- ------------------------------------------------------------- -----------------
Computer Memory--1.82%
5,528,000 Global Testing Corp. Ltd.* . . . . . . . . . . . $ 1,256,959
4,250,000 Memory Devices Ltd. . . . . . . . . . . . . . . . 1,087,162
----------------
2,344,121
----------------
Conglomerate--4.50%
163,000 Jardine Matheson Holdings Ltd. . . . . . . . . . 2,950,300
1,250,000 Sembcorp Industries Ltd.+ . . . . . . . . . . . . 2,842,255
----------------
5,792,555
----------------
Diversified--0.89%
100,000 Jardine Strategic Holdings Ltd. . . . . . . . . . 1,140,000
----------------
E-Business--1.43%
3,000,000 DMX Technologies Group, Ltd.* . . . . . . . . . 1,837,991
----------------
Electronic Components--1.69%
3,350,000 United Test and Assembly Center Ltd.* . . . . . 2,179,378
----------------
Electronics--0.65%
1,000,000 Magnecomp International Ltd. . . . . . . . . . . 840,044
----------------
Environmental--0.18%
475,000 Sino-Environment Technology Group Ltd.* . . . . . 228,012
----------------
Foods--2.02
700,000 China Lifestyle Food and Beverages Group Ltd. . . 145,902
2,879,000 Luzhou Bio-Chem Technology Ltd. . . . . . . . . . 1,281,980
2,250,000 Pacific Andes Holdings, Ltd. . . . . . . . . . . 1,165,325
----------------
2,593,207
----------------
7
Portfolio of Investments (continued)
April 30, 2006 (unaudited)
COMMON STOCKS (continued)
Shares Value
- ------------------------------------------------------------- -----------------
Health & Personal Care--4.08%
2,500,000 Biosensors International Group Ltd.* . . . . . . $ 2,021,159
3,350,000 LMA International NV, Ltd.* . . . . . . . . . . . 1,777,357
5,000,000 Sunray Holdings Ltd. . . . . . . . . . . . . . . 1,452,708
-----------------
5,251,224
-----------------
Home Products--1.06%
6,355,000 Contel Corp. Ltd.* . . . . . . . . . . . . . . . 1,364,724
-----------------
Industrial--2.15%
1,400,000 Singapore Technologies Engineering Ltd.+ . . . 2,758,882
-----------------
Iron & Steel--0.61%
10,000,000 Delong Holdings Ltd. . . . . . . . . . . . . . 789,515
-----------------
Leisure and Tourism--1.45%
4,250,000 Raffles Holdings Ltd.+ . . . . . . . . . . . . . 1,865,625
-----------------
Machinery--0.42%
1,366,000 Bright World Precision Machinery Ltd.* . . . . 539,239
-----------------
Manufacturing--0.15%
1,500,000 Linair Technologies Ltd.@ . . . . . . . . . . . 194,221
-----------------
Metal Processor--1.58%
3,700,000 FerroChina Ltd. . . . . . . . . . . . . . . . . 2,033,160
-----------------
Oil & Gas Extraction--1.72%
1,414,000 KS Energy Services Ltd. . . . . . . . . . . . . 2,214,887
-----------------
Pharmaceuticals--0.49%
1,200,000 AsiaPharm Group Ltd. . . . . . . . . . . . . . 629,086
-----------------
Printing & Packaging--1.00%
2,214,887 Fung Choi Printing and Packaging Group Ltd. . . 1,286,594
-----------------
Shares Value
- ------------------------------------------------------------- -----------------
Property Development--10.42%
1,400,000 Capitaland Ltd.+ . . . . . . . . . . . . . . . 4,332,860
580,000 City Developments Ltd. . . . . . . . . . . . . 3,699,984
290,000 Hongkong Land Holdings, Ltd. . . . . . . . . . 1,136,800
700,000 Keppel Land Ltd.+ . . . . . . . . . . . . . . . 2,095,689
600,471 United Overseas Land Ltd. . . . . . . . . . . . 1,160,550
880,000 Wing Tai Holdings Ltd. . . . . . . . . . . . . 972,683
-----------------
13,398,566
-----------------
Real Estate Investment Trust--0.10%
140,000 K-REIT Asia* . . . . . . . . . . . . . . . . . 131,754
-----------------
Recycling--0.00%
14,641,000 Citiraya Industries, Ltd.*@ . . . . . . . . . . ---
-----------------
Retail--0.89%
2,548,000 Best World International Ltd. . . . . . . . . . 1,142,637
-----------------
Shipyards--3.46%
460,000 Keppel Corp. Ltd.+ . . . . . . . . . . . . . . . 4,445,287
-----------------
Technology--2.32%
15,000,000 Global Voice Group Ltd.* . . . . . . . . . . . 1,563,240
2,000,000 Sarin Technologies Ltd. . . . . . . . . . . . . 1,414,811
-----------------
2,978,051
-----------------
Telecommunications--8.26%
5,400,000 Singapore Telecommunications Ltd.+ . . . . . . . 9,345,334
900,000 StarHub Ltd.+ . . . . . . . . . . . . . . . . . 1,273,330
-----------------
10,618,664
-----------------
8
Portfolio of Investments (concluded)
April 30, 2006 (unaudited)
COMMON STOCKS (concluded)
Shares Value
- ------------------------------------------------------------- -----------------
Transport Services--1.39%
2,500,000 Singapore Post Ltd.+ . . . . . . . . . . . . . . $ 1,784,304
-----------------
Transportation--Air--2.89%
415,000 Singapore Airlines Ltd.+ . . . . . . . . . . . . 3,722,091
-----------------
Transportation--Land--2.08%
3,750,000 SMRT Corp., Ltd.+ . . . . . . . . . . . . . . . 2,676,457
-----------------
Transportation--Marine--4.67%
6,650,000 Cosco Corp. (Singapore) Ltd. . . . . . . . . . . 6,006,316
-----------------
Total Singapore Common Stocks . . . . . . . . . . . . . . . . 118,976,051
-----------------
Total Common Stocks
(Cost--$86,127,597) . . . . . . . . . . . . . . . . . . . . 122,010,895
-----------------
- --------------------------------------------------------------------------------
TIME DEPOSITS--4.96%
- --------------------------------------------------------------------------------
Principal
Amount
(000)
- ---------
SINGAPORE DOLLAR--3.07%
6,247 Citibank Singapore 1.70%, due 5/1/06 . . . . . . 3,945,430
-----------------
U.S. DOLLAR--1.89%
$ 184 Bank of New York,
0.05%, due 5/1/06. . . . . . . . . . . . . . . 184,450
2,252 Citibank Singapore,
3.834%, due 5/1/06 . . . . . . . . . . . . . . 2,251,678
-----------------
Total U.S. Dollar Time Deposits . . . . . . . . . . . . . . . 2,436,128
-----------------
Total Time Deposits (Cost--$6,343,195). . . . . . . . . . . . $ 6,381,558
-----------------
Total Investments--99.83%
(Cost--$92,470,792). . . . . . . . . . . . . . . . . . . . 128,392,453
Other assets less liabilities--0.17%. . . . . . . . . . . . . 217,857
-----------------
NET ASSETS (Applicable to 9,239,320 shares of
capital stock outstanding; equivalent to
$13.92 per share)--100.00%. . . . . . . . . . . . . . . . . $128,610,310
=================
- -------------------------------
* Non-income producing securities.
+ Deemed to be an affiliated issuer (see page 11).
@ Fair valued security. This security has been
valued in good faith in such a manner as
prescribed by the Board of Directors.
See accompanying notes to financial statements.
9
EQUITY CLASSIFICATIONS HELD
April 30, 2006 (unaudited)
- ---------------------------------------------------------------
Percent of
Industry Net Assets
- -------- ----------
Banks & Financial Services . . . . . . . . . . . . 21.83%
Property Development . . . . . . . . . . . . . . . 10.42
Telecommunications . . . . . . . . . . . . . . . . 8.26
Transportation--Marine . . . . . . . . . . . . . . 4.67
Conglomerate . . . . . . . . . . . . . . . . . . . 4.50
Health & Personal Care . . . . . . . . . . . . . . 4.08
Shipyards. . . . . . . . . . . . . . . . . . . . . 3.46
Transportation--Air. . . . . . . . . . . . . . . . 2.89
Communications--Media. . . . . . . . . . . . . . . 2.59
Agricultural Biotechnology . . . . . . . . . . . . 2.32
Technology . . . . . . . . . . . . . . . . . . . . 2.32
Industrial . . . . . . . . . . . . . . . . . . . . 2.15
Transportation--Land . . . . . . . . . . . . . . . 2.08
Foods. . . . . . . . . . . . . . . . . . . . . . . 2.02
Computer Memory. . . . . . . . . . . . . . . . . . 1.83
Oil & Gas Extraction . . . . . . . . . . . . . . . 1.72
Electronic Components. . . . . . . . . . . . . . . 1.69
Metal Processor. . . . . . . . . . . . . . . . . . 1.58
Building Materials . . . . . . . . . . . . . . . . 1.49
Leisure and Tourism. . . . . . . . . . . . . . . . 1.45
E-Business . . . . . . . . . . . . . . . . . . . . 1.43
Machinery. . . . . . . . . . . . . . . . . . . . . 1.41
Transport Services . . . . . . . . . . . . . . . . 1.39
Home Products. . . . . . . . . . . . . . . . . . . 1.06
Printing & Packaging . . . . . . . . . . . . . . . 1.00
Retail . . . . . . . . . . . . . . . . . . . . . . 0.89
Diversified. . . . . . . . . . . . . . . . . . . . 0.89
Chemicals. . . . . . . . . . . . . . . . . . . . . 0.74
Electronics. . . . . . . . . . . . . . . . . . . . 0.65
Iron & Steel . . . . . . . . . . . . . . . . . . . 0.61
Apparel & Sports Footwear. . . . . . . . . . . . . 0.55
Pharmaceuticals. . . . . . . . . . . . . . . . . . 0.49
Environmental. . . . . . . . . . . . . . . . . . . 0.18
Manufacturing. . . . . . . . . . . . . . . . . . . 0.15
Real Estate Investment Trust . . . . . . . . . . . 0.10
Recycling. . . . . . . . . . . . . . . . . . . . . 0.00
TEN LARGEST EQUITY POSITIONS HELD
April 30, 2006 (unaudited)
- ---------------------------------------------------------------
Percent of
Issue Net Assets
- -------- ----------
United Overseas Bank Ltd. . . . . . . . . . . . . 11.61%
Oversea-Chinese Banking Corp. Ltd. . . . . . . . . 8.85
Singapore Telecommunications Ltd. . . . . . . . . 7.27
Cosco Corp. (Singapore) Ltd. . . . . . . . . . . . 4.67
Keppel Corp. Ltd. . . . . . . . . . . . . . . . . 3.46
Capitaland Ltd. . . . . . . . . . . . . . . . . . 3.37
Singapore Airlines Ltd. . . . . . . . . . . . . . 2.89
City Developments Ltd. . . . . . . . . . . . . . . 2.88
Singapore Press Holdings Ltd. . . . . . . . . . . 2.59
China Sun Bio-chem Technology Group Co., Ltd. . . 2.32
See accompanying notes to financial statements.
10
Affiliated Holdings
Temasek Holdings, an Asian investment company located in Singapore, owns
28% of DBS Group, the parent of the Manager. Temasek Holdings also owns at least
25% of the following portfolio securities, which are deemed affiliated holdings
because of this common ownership.
Number Number
of Shares of Shares Market
Held Held Value at
October 31, Purchase Sales April 30, April 30, Dividend
Name of Affiliated Holding 2005 Cost Cost 2006 2006 Income
- -------------------------- ----------- -------- ------------ --------- ----------- --------
Capitaland Ltd. . . . . . . . . . . . . . . 1,400,000 $ -- $ -- 1,400,000 $ 4,332,860 $ --
Keppel Corp. Ltd. . . . . . . . . . . . . . 460,000 -- -- 460,000 4,445,287 --
Keppel Land Ltd . . . . . . . . . . . . . . 1,250,000 -- (692,252) 700,000 2,095,689 --
Raffles Holdings Ltd. . . . . . . . . . . . 2,577,000 691,845 -- 4,250,000 1,865,625 589,858
Sembcorp Industries Ltd.. . . . . . . . . . 1,250,000 -- -- 1,250,000 2,842,255 --
Singapore Airlines Ltd. . . . . . . . . . . 580,150 -- (983,338) 415,000 3,722,091 34,010
Singapore Post . . . . . . . . . . . . . . 1,615,000 609,119 -- 2,500,000 1,784,304 181,125
Singapore Technologies Engineering Ltd. . . 1,750,000 -- (338,177) 1,400,000 2,758,882 118,301
Singapore Telecommunications Ltd. . . . . . 6,150,650 -- (506,617) 5,400,000 9,345,334 --
SMRT Corp., Ltd. . . . . . . . . . . . . . 3,750,000 -- -- 3,750,000 2,676,457 26,411
StarHub Ltd. . . . . . . . . . . . . . . . 1,000,000 -- (92,816) 900,000 1,273,330 14,687
STATS ChipPAC Ltd. . . . . . . . . . . . . 1,200,000 -- (668,011) -- -- --
----------- --------
Total. . . . . . . . . . . . . . . . . $37,142,114 $964,392
=========== ========
See accompanying notes to financial statements.
11
Statement of Assets and Liabilities
April 30, 2006 (unaudited)
Assets
Investment in securities, at value:
Unaffiliated securities (cost--$69,763,213). . . . . . . . . . . . . . . . . $91,250,339
Affiliated securities (cost--$22,707,579). . . . . . . . . . . . . . . . . . 37,142,114 $128,392,453
-----------
Receivable for securities sold . . . . . . . . . . . . . . . . . . . . . . . . 148,289
Interest and dividends receivable. . . . . . . . . . . . . . . . . . . . . . . 431,482
Prepaid expenses . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 23,204
------------
Total assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 128,995,428
------------
Liabilities
Payable for management fees. . . . . . . . . . . . . . . . . . . . . . . . . . 146,338
Payable for advisory fees. . . . . . . . . . . . . . . . . . . . . . . . . . . 37,602
Payable for other affiliates . . . . . . . . . . . . . . . . . . . . . . . . . 26,713
Accrued expenses and other liabilities . . . . . . . . . . . . . . . . . . . . 174,465
------------
Total liabilities. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 385,118
------------
Net Assets
Capital stock, $0.01 par value per share; total 100,000,000 shares authorized;
9,239,320 shares issued and outstanding . . . . . . . . . . . . . . . . . . . 92,393
Paid-in capital in excess of par value . . . . . . . . . . . . . . . . . . . . 106,759,647
Accumulated net investment income. . . . . . . . . . . . . . . . . . . . . . . 469,187
Accumulated net realized loss on investments . . . . . . . . . . . . . . . . . (14,632,777)
Net unrealized appreciation on investments and other assets and liabilities
denominated in foreign currency . . . . . . . . . . . . . . . . . . . . . . . 35,921,860
------------
Net assets applicable to shares outstanding. . . . . . . . . . . . . . . . . . $128,610,310
============
Net Asset Value Per Share . . . . . . . . . . . . . . . . . . . . . . . $ 13.92
============
See accompanying notes to financial statements.
12
Statement of Operations
For the Six Months Ended April 30, 2006 (unaudited)
Investment Income:
Dividends:
Unaffiliated securities. . . . . . . . . . . . . . . . . . . . . . . . . . . $ 656,518
Affiliated securities. . . . . . . . . . . . . . . . . . . . . . . . . . . . 964,392 $ 1,620,910
--------- -----------
Interest. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 69,737
-----------
Total investment income. . . . . . . . . . . . . . . . . . . . . . . . . . . 1,690,647
-----------
Expenses:
Investment management fee . . . . . . . . . . . . . . . . . . . . . . . . . . 398,950
Investment advisory fee . . . . . . . . . . . . . . . . . . . . . . . . . . . 202,071
Legal fees and expenses . . . . . . . . . . . . . . . . . . . . . . . . . . . 196,974
Administration fee and expenses . . . . . . . . . . . . . . . . . . . . . . . 144,589
Custodian fees and expenses . . . . . . . . . . . . . . . . . . . . . . . . . 53,450
Audit and tax services. . . . . . . . . . . . . . . . . . . . . . . . . . . . 47,109
Insurance expense . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 22,560
Reports and notices to shareholders . . . . . . . . . . . . . . . . . . . . . 21,819
Transfer agency fee and expenses. . . . . . . . . . . . . . . . . . . . . . . 15,458
Directors' fees and expenses. . . . . . . . . . . . . . . . . . . . . . . . . 14,876
Other . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 28,635
-----------
Total expenses. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,146,491
-----------
Net investment income. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 544,156
-----------
Realized and unrealized gains from investment activities and foreign currency
transactions:
Net realized gains on investments:
Unaffiliated securities . . . . . . . . . . . . . . . . . . . . . . . . . . . 6,559,418
Affiliated securities . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2,218,902 8,778,320
---------
Net realized foreign currency transaction gains . . . . . . . . . . . . . . . 132,971
Net change in unrealized appreciation (depreciation) on investments
in equity securities. . . . . . . . . . . . . . . . . . . . . . . . . . . . 23,320,650
Net change in unrealized appreciation (depreciation) on other assets and
liabilities denominated in foreign currency . . . . . . . . . . . . . . . . 38,211
-----------
Net realized and unrealized gains from investment activities and foreign
currency transactions . . . . . . . . . . . . . . . . . . . . . . . . . . . 32,270,152
-----------
Net increase in net assets resulting from operations . . . . . . . . . . . . . . $32,814,308
===========
See accompanying notes to financial statements.
13
Statement of Changes in Net Assets
For the Six
Months
Ended For the Year
April 30, 2006 Ended
(unaudited) October 31, 2005
-------------- ----------------
Increase (decrease) in net assets from operations:
Net investment income . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 544,156 $ 1,411,958
Net realized gain on:
Investments . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8,778,320 9,706,807
Foreign currency transactions . . . . . . . . . . . . . . . . . . . . . . 132,971 78,950
Net change in unrealized appreciation (depreciation) on:
Investments in equity securities. . . . . . . . . . . . . . . . . . . . . 23,320,650 (5,989,104)
Translation of short-term investments and other assets and
liabilities denominated in foreign currency. . . . . . . . . . . . . . . 38,211 (86,645)
------------ -----------
Net increase in net assets resulting from operations. . . . . . . . . . . . 32,814,308 5,121,966
------------ -----------
Dividends and distributions to shareholders from:
Net investment income . . . . . . . . . . . . . . . . . . . . . . . . . . . (1,565,878) (2,025,569)
------------ -----------
From capital stock transactions:
Sale of capital stock resulting from:
Reinvestment of dividends . . . . . . . . . . . . . . . . . . . . . . . . 289,244 34,002
------------ -----------
Net increase in net assets. . . . . . . . . . . . . . . . . . . . . . . . . 31,537,674 3,130,399
Net assets:
Beginning of period . . . . . . . . . . . . . . . . . . . . . . . . . . . . 97,072,636 93,942,237
------------ -----------
End of period (including undistributed net investment income of
$469,187 and $1,490,908, respectively) . . . . . . . . . . . . . . . . . . $128,610,310 $97,072,636
============ ===========
See accompanying notes to financial statements.
14
Notes to Financial Statements
Organization and Significant Accounting Policies
The Singapore Fund, Inc. (the "Fund") was incorporated in Maryland on May
31, 1990 and commenced operations on July 31, 1990. It is registered with the
Securities and Exchange Commission as a closed-end, non-diversified management
investment company.
The following significant accounting policies are in conformity with
generally accepted accounting principles in the Unites States of America for
investment companies. Such policies are consistently followed by the Fund in the
preparation of its financial statements. The preparation of financial statements
in accordance with accounting principles generally accepted in the United States
of America requires management to make estimates and assumptions that affect the
amounts and disclosures in the financial statements. Actual reporting results
could differ from those estimates.
Valuation of Investments--Securities which are listed on foreign stock
exchanges and for which market quotations are readily available are valued at
the last sale price on the exchange on which the securities are traded, as of
the close of business on the day the securities are being valued or, lacking any
sales on such day, at the closing price quoted for such securities. However, if
bid and asked quotations are available, such securities are valued at the mean
between the last current bid and asked prices, rather than at such quoted
closing price. Securities that are traded over-the-counter, if bid and asked
price quotations are available, are valued at the mean between the current bid
and asked prices, or, if such quotations are not available, are valued as
determined in good faith by the Board of Directors (the "Board") of the Fund. In
instances where quotations are not readily available or where the price as
determined by the above procedures is deemed not to represent fair market value,
fair value will be determined in such manner as the Board may prescribe.
Short-term investments having maturity of 60 days or less are valued at
amortized cost, except where the Board determines that such valuation does not
represent the fair value of the investment. All other securities and assets are
valued at fair value as determined in good faith by, or under the direction of,
the Board.
Foreign Currency Translation--The books and records of the Fund are
maintained in U.S. dollars as follows: (1) the foreign currency market value of
investment securities and other assets and liabilities stated in foreign
currencies are translated at the exchange rates prevailing at the end of the
period; and (2) purchases, sales, income and expenses are translated at the rate
of exchange prevailing on the respective dates of such transactions. The
resulting exchange gains and losses are included in the Statement of Operations.
The Fund does not isolate the effect of fluctuations in the market price of
securities.
Tax Status--The Fund intends to continue to distribute substantially all of
its taxable income and to comply with the minimum distribution and other
requirements of the Internal Revenue Code applicable to regulated investment
companies. Accordingly, no provision for federal income or excise taxes is
required. During the six months ended April 30, 2006, the Fund was subject to
withholding tax, ranging from 10% to 20%, on certain income from its
investments.
The Fund continues to meet the conditions required to qualify for the
exemption from Singapore income tax, available to non-Singapore residents who
are beneficiaries of funds managed by approved fund managers, in respect of
certain types of income. Accordingly, no provision for Singapore income tax is
required.
15
Notes to Financial Statements (continued)
Investment Transactions and Investment Income--Investment transactions are
recorded on the trade date (the date upon which the order to buy or sell is
executed). Realized and unrealized gains and losses from security and foreign
currency transactions are calculated on the identified cost basis. Dividend
income and corporate actions are recorded on the ex-date, except for certain
dividends and corporate actions involving foreign securities which may be
recorded after the ex-date, as soon as the Fund acquires information regarding
such dividends or corporate actions. Interest income is recorded on an accrual
basis.
Dividends and Distributions to Shareholders--The Fund records dividends and
distributions payable to its shareholders on the ex-dividend date. The amount of
dividends and distributions from net investment income and net realized capital
gains are determined in accordance with federal income tax regulations, which
may differ from generally accepted accounting principles. These book basis/tax
basis ("book/tax") differences are either considered temporary or permanent in
nature. To the extent these differences are permanent in nature, such amounts
are reclassified within the capital accounts based on their federal tax-basis
treatment; temporary differences do not require reclassifications. Dividends and
distributions which exceed net investment income and net realized capital gains
for tax purposes are reported as distributions of paid-in-capital.
Forward Foreign Currency Contracts--The Fund may enter into forward foreign
currency exchange contracts in connection with planned purchases or sales of
securities or to hedge the U.S. dollar value of its assets denominated in a
particular currency, subject to a maximum limitation of 20% of the value of its
total assets committed to the consummation of such forward foreign currency
contracts. In addition, the Fund will not take positions in foreign forward
currency contracts where the settlement commitment exceeds the value of its
assets denominated in the currency of the contract. If the Fund enters into
forward foreign currency contracts, its custodian or subcustodian will maintain
cash or readily marketable securities in a segregated account of the Fund in an
amount equal to the value of the Fund's total assets committed to the
consummation of such contracts. Risks may arise upon entering into these
contracts from the potential inability of counterparties to meet the terms of
their contracts and from unanticipated movements in the value of a foreign
currency relative to the U.S. dollar.
Investment Manager and Investment Adviser
The Fund has entered into an Investment Management Agreement (the
"Management Agreement") with DBS Asset Management (United States) Pte. Ltd. (the
"Manager"). Pursuant to the Management Agreement, the Manager makes investment
management decisions relating to the Fund's assets. For such services, the Fund
pays the Manager a monthly fee at an annual rate of 0.80% of the first $50
million of the Fund's average weekly net assets and 0.66% of the Fund's average
weekly net assets in excess of $50 million. In addition, as permitted by the
Management Agreement, the Fund reimburses the Manager for its out-of-pocket
expenses related to the Fund. During the six months ended April 30, 2006, no
out-of-pocket expenses were paid to the Manager.
The Fund has entered into an Investment Advisory Agreement (the "Advisory
Agreement") with Daiwa SB Investments (Singapore) Limited (the "Adviser"), which
provides general and specific investment advice to the Manager with respect to
the Fund's assets. The Fund pays the Adviser a monthly fee at an annual rate of
0.40% of the first $50 million of the Fund's average weekly net assets and 0.34%
of the Fund's average weekly net assets in excess of $50 million. In addition,
as permitted by the Advisory Agreement, the Fund reimburses the Adviser for its
out-of-pocket expenses related to the Fund. During the six months ended April
30, 2006, no out-of-pocket expenses were paid to the Adviser.
16
Notes to Financial Statements (continued)
At April 30, 2006, the Fund owed to the Manager and the Adviser $73,960 and
$37,602 for management and advisory fees, respectively.
Administrator and Custodian and Other Related Parties
Daiwa Securities Trust Company ("DSTC"), an affiliate of the Adviser,
provides certain administrative services to the Fund. For such services, the
Fund pays DSTC a monthly fee at an annual rate of 0.20% of the Fund's average
weekly net assets, with a minimum fee of $150,000. In addition, as permitted by
the Administration Agreement, the Fund reimburses the Administrator for its
out-of-pocket expenses related to the Fund. During the six months ended April
30, 2006, expenses of $14,983 were paid to the Administrator, representing
reimbursement to the Administrator of costs relating to the attendance by its
employees at meetings of the Fund's Board.
DSTC also acts as custodian for the Fund's assets and appoints
subcustodians for the Fund's assets held outside of the United States. DSTC has
appointed DBS Bank Ltd. ("DBS Bank"), an affiliate of the Manager, to act as the
subcustodian for all of the cash and securities of the Fund held in Singapore.
As compensation for its services as custodian, DSTC receives a monthly fee and
reimbursement of out-of-pocket expenses related to the Fund. Such expenses
include the fees and out-of-pocket expenses of each of the subcustodians. During
the six months ended April 30, 2006, DSTC earned $12,277 and DBS Bank earned
$38,480 from the Fund for their respective custodial services.
At April 30, 2006, the Fund owed to DSTC $20,669, $3,750 and $22,575 for
administration, compliance and custodian fees, respectively. The latter amount
includes fees and expenses payable to DBS Bank totaling $20,280.
During the six months ended April 30, 2006, the Fund paid or accrued
$70,349 for legal services, in connection with the Fund's on-going operations,
to a law firm of which the Fund's Assistant Secretary is a partner.
Investments in Securities and Federal Income Tax Matters
For federal income tax purposes, the cost of securities owned at April 30,
2006 was $86,275,497, excluding short-term interest-bearing investments. At
April 30, 2006, the net unrealized appreciation on investments, excluding
short-term securities, of $35,735,397 was composed of gross appreciation of
$40,083,465 for those investments having an excess of value over cost, and gross
depreciation of $4,348,068 for those investments having an excess of cost over
value. For the six months ended April 30, 2006, the total aggregate cost of
purchases and net proceeds from sales of portfolio securities, excluding the
short-term securities, were $20,515,775 and $23,597,853, respectively.
At October 31, 2005, the Fund had a remaining capital loss carryover of
$23,63,702, of which $5,096,375 expires in the year 2008, $16,509,415 expires in
the year 2009 and $1,757,912 expires in the year 2010, available to offset
future net capital gains.
Concentration of Risk
Investments in countries in which the Fund may invest may involve certain
considerations and risks not typically associated with U.S. investments as a
result of, among others, the possibility of future political and economic
developments and the level of governmental supervision and regulation of the
securities markets in which the Fund invests.
17
Notes to Financial Statements (concluded)
At April 30, 2006, the Fund had 6,246,602 Singapore Dollars valued at
$3,945,430 on deposit with a single financial institution.
Capital Stock
There are 100,000,000 shares of $0.01 par value common stock authorized.
During the six months ended April 30, 2006, 28,274 shares were issued as a
result of the reinvestment of dividends paid to those shareholders electing to
reinvest dividends. Of the 9,239,320 shares outstanding at April 30, 2006, Daiwa
Securities America, Inc., an affiliate of the Adviser and DSTC, owned 15,369
shares.
18
Financial Highlights
Selected data for a share of capital stock outstanding during each period is
presented below:
For the Six
Months Ended
April 30, For the Years Ended October 31,
2006 ------------------------------------------------
(unaudited) 2005 2004 2003 2002 2001
----------- -------- -------- -------- -------- --------
Net asset value, beginning of period . . . . . . . . $10.54 $10.20 $ 8.81 $ 6.46 $ 5.76 $ 8.12
------- ------- ------- ------- ------- -------
Net investment income. . . . . . . . . . . . . . . . 0.06 0.16 0.18 0.08 0.02 0.10
Net realized and unrealized gains (losses) on
investments and foreign currency transactions . . . 3.49 0.40 1.31 2.28 0.76 (2.46)
------- ------- ------- ------- ------- -------
Net increase (decrease) in net asset value
resulting from operations . . . . . . . . . . . . . 3.55 0.56 1.49 2.36 0.78 (2.36)
------- ------- ------- ------- ------- -------
Less: dividends and distributions to shareholders
Net investment income. . . . . . . . . . . . . . . (0.17) (0.22) (0.10) (0.01) (0.08) --
------- ------- ------- ------- ------- -------
Net asset value, end of period . . . . . . . . . . . $13.92 $10.54 $10.20 $ 8.81 $ 6.46 $ 5.76
======= ======= ======= ======= ======= =======
Per share market value, end of period. . . . . . . . $13.00 $ 9.29 $ 8.52 $ 7.62 $ 5.00 $ 4.48
======= ======= ======= ======= ======= =======
Total investment return:
Based on market price at beginning and end of
period, assuming reinvestment of dividends. . . . 42.26 % 11.80 % 13.25 % 52.59 % 13.39 % (29.73)%
Based on net asset value at beginning and end of
period, assuming reinvestment of dividends. . . . 34.26 % 5.95 % 17.27 % 36.55 % 13.94 % (29.06)%
Ratios and supplemental data:
Net assets, end of period (in millions). . . . . . $128.6 $ 97.1 $ 93.9 $ 81.1 $ 59.4 $ 53.0
Ratios to average net assets of:
Expenses . . . . . . . . . . . . . . . . . . . . 2.08 %* 1.81 % 1.65 % 1.85 % 2.12 % 2.15 %
Expenses, excluding waiver of Administration
and Advisory fee applicable to net
investment income . . . . . . . . . . . . . . . 2.08 %* 1.81 % 1.82 % 2.04 % 2.20 % 2.15 %
Net investment income. . . . . . . . . . . . . . 0.99 %* 1.47 % 1.93 % 1.19 % 0.23 % 1.47 %
Portfolio turnover . . . . . . . . . . . . . . . . . 19.37 % 34.85 % 77.65 % 93.13 % 103.33 % 152.18 %
- ------------------------
* Annualized.
19
Results of Annual Meeting of Stockholders (unaudited)
On June 1, 2006, the Annual Meeting of Stockholders of The Singapore Fund,
Inc. (the "Fund") was held and the following matter was voted upon and passed.
Election of two Class III Directors to the Board of Directors of the Fund
to serve for a term expiring on the date on which the Annual Meeting of
Stockholders is held in the year 2009.
Number of Shares/Votes
----------------------
Proxy Authority
Class III Voted For Withheld
----------------- --------- ---------------
Austin C. Dowling 6,216,419 267,006
Masamichi Yokoi 6,224,229 259,196
In addition to the Directors re-elected at the Meeting, Martin J. Gruber,
David G. Harmer and Oren G. Shaffer are the other members of the Board who
continue to serve as Directors of the Fund.
An Important Notice Concerning Our Privacy Policy
This Privacy Notice describes the types of non-public information we
collect about you, the ways we safeguard the confidentiality of this information
and when this information may be shared with others. In this Privacy Notice, the
terms "we," "our" and "us" refer to the Fund. The term "you" in this Privacy
Notice refers broadly to all of our individual stockholders (including
prospective and former individual stockholders).
In order to provide you with services, we collect certain non-public
information about you. We obtain this personal information from the following
sources:
o Applications and other forms you submit to us.
o Dealings and transactions with us or others.
We do not disclose any non-public personal information about you to anyone,
except as permitted by law. For instance, so that we may effect transactions
that you request or authorize, we may disclose the information we collect to
companies that perform services on our behalf, such as printers and mailers that
assist us in the distribution of investor materials. These companies will use
this information only for the services for which we hired them, and are not
permitted to use or share this information for any other purpose.
We maintain physical, electronic and procedural security measures that
comply with federal standards to safeguard your non-public personal information.
Access to such information is restricted to those agents of the Fund who are
trained in the proper handling of client information and who need to know that
information in order to provide services to stockholders.
20
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(This page has been left blank intentionally.)
(This page has been left blank intentionally.)
- ----------------------------------------------
BOARD OF DIRECTORS
Masamichi Yokoi, Chairman
Austin C. Dowling
Martin J. Gruber
David G. Harmer
Oren G. Shaffer
- ----------------------------------------------
OFFICERS
John J. O'Keefe
Vice President and Treasurer
Yuko Uchida
Secretary
Anthony Cambria
Chief Compliance Officer
Leonard B. Mackey, Jr.
Assistant Secretary
- ----------------------------------------------
ADDRESS OF THE FUND
c/o Daiwa Securities Trust Company
One Evertrust Plaza, 9th Floor
Jersey City, NJ 07302-3051
- ----------------------------------------------
INVESTMENT MANAGER
DBS Asset Management (United States) Pte. Ltd.
INVESTMENT ADVISER
Daiwa SB Investments (Singapore) Ltd.
ADMINISTRATOR AND CUSTODIAN
Daiwa Securities Trust Company
TRANSFER AGENT AND REGISTRAR
American Stock Transfer & Trust Company
LEGAL COUNSEL
Clifford Chance US LLP
INDEPENDENT REGISTERED
PUBLIC ACCOUNTING FIRM
PricewaterhouseCoopers LLP
- ----------------------------------------------
Notice is hereby given in accordance with Section 23(c) of the Investment
Company Act of 1940 that from time to time the Fund may purchase shares of its
common stock in the open market at prevailing market prices. This report is sent
to shareholders of the Fund for their information. It is not a prospectus,
circular or representation intended for use in the purchase or sale of shares of
the Fund or of any securities mentioned in the report. The financial information
included herein is taken from the records of the Fund without examination by the
Independent Registered Public Accounting Firm which does not express an opinion
thereon.
THE
SINGAPORE
FUND, INC.
[LOGO]
Semi-Annual Report
April 30, 2006
Item 2. Code of Ethics.
Not applicable for this semi-annual report.
Item 3. Audit Committee Financial Expert.
Not applicable for this semi-annual report.
Item 4. Principal Accountant Fees and Services.
Not applicable for this semi-annual report.
Item 5. Audit Committee of Listed Registrants.
Not applicable for this semi-annual report.
Item 6. Schedule of Investments.
A Schedule of Investments is included as part of the report to stockholders
filed under Item 1.
Item 7. Disclosure of Proxy Voting Policies and Procedures for Closed-End
Management Investment Companies.
Not applicable for this semi-annual report.
Item 8. Portfolio Managers of Closed-End Management Investment Companies.
Not applicable for this semi-annual report.
Item 9. Purchase of Equity Securities by Closed-End Management Investment
Company and Affiliated Purchasers.
REGISTRANT PURCHASES OF EQUITY SECURITIES
- --------------------- ------------------- ----------------- ------------------------ ---------------------------------
Period (a) (b) (c) (d)
Total Number of Average Price Total Number of Shares Maximum Number (or Approximate
Shares (or Units) Paid per Share (or Units) Purchased Dollar Value) of Shares (or
Purchased (or Unit) as Part of Publicity Units) that may yet be
Announced Plans or Purchased Under the Plans or
Programs Programs
- --------------------- ------------------- ----------------- ------------------------ ---------------------------------
November 0 N/A 0 0
- --------------------- ------------------- ----------------- ------------------------ ---------------------------------
December 0 N/A 0 0
- --------------------- ------------------- ----------------- ------------------------ ---------------------------------
January 0 N/A 0 0
- --------------------- ------------------- ----------------- ------------------------ ---------------------------------
February 0 N/A 0 0
- --------------------- ------------------- ----------------- ------------------------ ---------------------------------
March 0 N/A 0 0
- --------------------- ------------------- ----------------- ------------------------ ---------------------------------
April 0 N/A 0 0
- --------------------- ------------------- ----------------- ------------------------ ---------------------------------
Total 0 N/A 0 0
=====
- --------------------- ------------------- ----------------- ------------------------ ---------------------------------
Item 10. Submission of Matters to a Vote of Security Holders.
There have been no material changes to the procedures by which shareholders
may recommend nominees to the registrant's board of directors during the period.
Item 11. Controls and Procedures.
(a) The registrant's principal executive 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 "1940 Act") (17 CFR 270.30a-3(c))) are
effective, as of a date within 90 days of the filing date of this Form
N-CSR based on their evaluation of these controls and procedures
required by Rule 30a-3(b) under the 1940 Act (17 CFR 270.30a-3(b)) and
Rules 13a-15(b) or 15d-15(b) under the 1934 Act (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 1940 Act
(17 CFR 270.30a-3(d))) that occurred during the registrant's second
fiscal quarter of the period covered by this report that has
materially affected, or is reasonably likely to materially affect, the
registrant's internal control over financial reporting.
Item 12. Exhibits.
(a)(1) Not applicable for this semi-annual report.
(a)(2) Certifications required by Rule 30a-2(a) of the Investment Company Act
of 1940, as amended, and Section 906 of the Sarbanes-Oxley Act of 2002
are attached hereto.
(a)(3) None.
(b) Not applicable.
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.
The Singapore Fund, Inc.
By \s\ John J. O'Keefe
-------------------------------------------
John J. O'Keefe, Vice President & Treasurer
Date: June 19, 2006
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\ John J. O'Keefe
-------------------------------------------
John J. O'Keefe, Vice President & Treasurer
Date: June 19, 2006
By \s\ Masamichi Yokoi
-------------------------------------------
Masamichi Yokoi, Chairman
Date: June 19, 2006
EXHIBIT 12 (b)
CERTIFICATION
PURSUANT TO SECTION 302 OF THE SARBANES-OXLEY ACT OF 2002
I, John J. O'Keefe, certify that:
1. I have reviewed this report on Form N-CSR of The Singapore Fund, Inc.;
2. Based on my knowledge, this report does not contain any untrue statement of
a material fact or omit to state a material fact necessary to make the
statements made, in light of the circumstances under which such statements
were made, not misleading with respect to the period covered by this
report;
3. Based on my knowledge, the financial statements, and other financial
information included in this report, fairly present in all material
respects the financial condition, results of operations, changes in net
assets, and cash flows (if the financial statements are required to include
a statement of cash flows) of the registrant as of, and for, the periods
presented in this report;
4. The registrant's other certifying officer and I are responsible for
establishing and maintaining disclosure controls and procedures (as defined
in Rule 30a-2(c) under the Investment Company Act of 1940) and internal
control over financial reporting (as defined in Rule 30a-3(d) under the
Investment Company Act of 1940) for the registrant and have:
(a) designed such disclosure controls and procedures, or caused such
disclosure controls and procedures to be designed under our
supervision, to ensure that material information relating to the
registrant, including its consolidated subsidiaries, is made known to
us by others within those entities, particularly during the period in
which this report is being prepared;
(b) Designed such internal control over financial reporting, or caused
such internal control over financial reporting to be designed under
our supervision, to provide reasonable assurance regarding the
reliability of financial reporting and the preparation of financial
statements for external purposes in accordance with generally accepted
accounting principles;
(c) Evaluated the effectiveness of the registrant's disclosure controls
and procedures and presented in this report our conclusions about the
effectiveness of the disclosure controls and procedures, as of a date
within 90 days prior to the filing date of this report based on such
evaluation; and
(d) Disclosed in this report any change in the registrant's internal
control over financial reporting that occurred during the second
fiscal quarter of the period covered by this report that has
materially affected, or is reasonably likely to materially affect, the
registrant's internal control over financial reporting; and
5. The registrant's other certifying officer and I have disclosed to the
registrant's auditors and the audit committee of the registrant's board of
directors (or persons performing the equivalent functions):
(a) all significant deficiencies and material weaknesses in the design or
operation of internal control which are reasonably likely to adversely
affect the registrant's ability to record, process, summarize, and
report financial information; and
(b) any fraud, whether or not material, that involves management or other
employees who have a significant role in the registrant's internal
controls over financial reporting.
Date: June 19, 2006
\s\ John J. O'Keefe
-------------------------------------------
John J. O'Keefe, Vice President & Treasurer
CERTIFICATION
PURSUANT TO SECTION 302 OF THE SARBANES-OXLEY ACT OF 2002
I, Masamichi Yokoi, certify that:
1. I have reviewed this report on Form N-CSR of The Singapore Fund, Inc.;
2. Based on my knowledge, this report does not contain any untrue statement of
a material fact or omit to state a material fact necessary to make the
statements made, in light of the circumstances under which such statements
were made, not misleading with respect to the period covered by this
report;
3. Based on my knowledge, the financial statements, and other financial
information included in this report, fairly present in all material
respects the financial condition, results of operations, changes in net
assets, and cash flows (if the financial statements are required to include
a statement of cash flows) of the registrant as of, and for, the periods
presented in this report;
4. The registrant's other certifying officer and I are responsible for
establishing and maintaining disclosure controls and procedures (as defined
in Rule 30a-2(c) under the Investment Company Act of 1940) and internal
control over financial reporting (as defined in Rule 30a-3(d) under the
Investment Company Act of 1940) for the registrant and have:
(a) Designed such disclosure controls and procedures, or caused such
disclosure controls and procedures to be designed under our
supervision, to ensure that material information relating to the
registrant, including its consolidated subsidiaries, is made known to
us by others within those entities, particularly during the period in
which this report is being prepared;
(b) Designed such internal control over financial reporting, or caused
such internal control over financial reporting to be designed under
our supervision, to provide reasonable assurance regarding the
reliability of financial reporting and the preparation of financial
statements for external purposes in accordance with generally accepted
accounting principles;
(c) Evaluated the effectiveness of the registrant's disclosure controls
and procedures and presented in this report our conclusions about the
effectiveness of the disclosure controls and procedures, as of a date
within 90 days prior to the filing date of this report based on such
evaluation; and
(d) Disclosed in this report any change in the registrant's internal
control over financial reporting that occurred during the second
fiscal quarter of the period covered by this report that has
materially affected, or is reasonably likely to materially affect, the
registrant's internal control over financial reporting; and
5. The registrant's other certifying officer and I have disclosed to the
registrant's auditors and the audit committee of the registrant's board of
directors (or persons performing the equivalent functions):
(a) all significant deficiencies and material weaknesses in the design or
operation of internal control which are reasonably likely to adversely
affect the registrant's ability to record, process, summarize, and report
financial information; and
(b) any fraud, whether or not material, that involves management or other
employees who have a significant role in the registrant's internal controls
over financial reporting.
Date: June 19, 2006
By \s\ Masamichi Yokoi
---------------------------------------
Masamichi Yokoi, Chairman
CERTIFICATION
PURSUANT TO SECTION 906
OF THE SARBANES-OXLEY ACT OF 2002
The undersigned, the Vice President & Treasurer of The Singapore Fund, Inc.
(the "Fund"), with respect to the Form N-CSR for the period ended April 30, 2006
as filed with the Securities and Exchange Commission, hereby certifies, pursuant
to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the
Sarbanes-Oxley Act of 2002, that:
1. such Form N-CSR fully complies with the requirements of section 13(a) or
15(d) of the Securities Exchange Act of 1934; and
2. the information contained in such Form N-CSR fairly presents, in all
material respects, the financial condition and results of operations of the
Funds.
Dated: June 19, 2006
\s\ John J. O'Keefe
-------------------------------------------
John J. O'Keefe, Vice President & Treasurer
This certification is being furnished solely pursuant to 18 U.S.C. Section
1350 and is not being filed as part of the Report or as a separate disclosure
document.
CERTIFICATION
PURSUANT TO SECTION 906
OF THE SARBANES-OXLEY ACT OF 2002
The undersigned, the Chairman of The Singapore Fund, Inc. (the "Fund"),
with respect to the Form N-CSR for the period ended April 30, 2006 as filed with
the Securities and Exchange Commission, hereby certifies, pursuant to 18 U.S.C.
Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of
2002, that:
1. such Form N-CSR fully complies with the requirements of section 13(a) or
15(d) of the Securities Exchange Act of 1934; and
2. the information contained in such Form N-CSR fairly presents, in all
material respects, the financial condition and results of operations of the
Funds.
Dated: June 19, 2006
\s\ Masamichi Yokoi
-------------------------------------------
Masamichi Yokoi, Chairman
This certification is being furnished solely pursuant to 18 U.S.C. Section
1350 and is not being filed as part of the Report or as a separate disclosure
document.