N-Q 1 d337654dnq.htm DEL REY GLOBAL INVESTORS FUNDS del Rey Global Investors Funds

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             811-22434            

                            del Rey Global Investors Funds                            

(Exact name of registrant as specified in charter)

6701 Center Drive West, Suite 655

                             Los Angeles, CA 90045                            

(Address of principal executive offices) (Zip code)

Corporation Service Company

Gerald W. Wheeler, Esq.

Chief Operating Officer

del Rey Global Investors, LLC

6701 Center Drive West, Suite 655

                             Los Angeles, CA 90045                            

(Name and address of agent for service)

Registrant’s telephone number, including area code: (310) 649-1230

Date of fiscal year end: May 31

Date of reporting period: February 29, 2012

Item 1. Schedule of Investments.

del Rey Global Investors Funds    (UNAUDITED)
del Rey Monarch Fund     

SCHEDULE OF INVESTMENTS

February 29, 2012

     

Number of

Shares

      Market Value     

% of Net

Assets

  
Common Stock                        

Belgium (Cost $202,378)

         

Belgacom SA

      5,900       $ 187,829      
        187,829         3.1%   

Canada (Cost $547,367)

         

Barrick Gold Corp

      3,800         181,374      

Kinross Gold Corp

      6,900         76,452      

Magna International Inc

      2,100         99,918      

Nexen Inc

      4,400         89,672      

Suncor Energy Inc

      2,700         97,038      
        544,454         9.0%   

China (Cost $95,402)

         

Huaneng Power International Inc, Class H

      186,000         119,185      
        119,185         2.0%   

Finland (Cost $361,297)

         

Nokia OYJ

      34,700         182,150      

Stora Enso OYJ, Class R

      17,600         132,132      
        314,282         5.2%   

France (Cost $393,301)

         

Alcatel-Lucent (1)

      31,000         77,729      

Sanofi

      2,200         162,703      

Societe Generale SA

      1,400         45,232      
        285,664         4.7%   

Germany (Cost $269,863)

         

Deutsche Bank AG (Registered)

      1,200         56,045      

Deutsche Post AG (Registered)

      3,400         59,726      

Siemens AG (Registered)

      1,700         169,551      
        285,322         4.7%   

Hong Kong (Cost $250,833)

         

Chaoda Modern Agriculture Holdings Ltd (2)

      168,000         23,826      

China Mobile Ltd

      16,500         176,249      

Sino-Forest Corp (1)(2)

      5,000         51      
        200,126         3.3%   

Italy (Cost $296,099)

         

Intesa Sanpaolo SpA

      32,100         62,482      

Telecom Italia SpA - RSP

      200,000         189,320      
        251,802         4.2%   

Japan (Cost $1,559,914)

         

Dai Nippon Printing Co Ltd

      17,000         175,041      

FUJIFILM Holdings Corp

      6,700         169,541      

Hachijuni Bank Ltd

      10,000         58,679      

Mabuchi Motor Co Ltd

      3,500         162,752      

MS&AD Insurance Group Holdings

      2,900         62,182      

Nintendo Co Ltd

      700         103,335      

Rohm Co Ltd

      2,300         115,722      

Sankyo Co Ltd

      1,700         81,770      

Secom Co Ltd

      2,600         123,300      

Sega Sammy Holdings Inc

      4,700         89,098      

Seven & I Holdings Co Ltd

      5,900         163,015      

Shiseido Co Ltd

      6,800         118,033      

Sumitomo Mitsui Trust Holdings Inc

      18,000         62,444      
        1,484,912         24.5%   

Netherlands (Cost $363,683)

         

Aegon NV (1)

      11,900         62,308      

Royal Dutch Shell PLC, Class B

      4,600         170,475      

Wolters Kluwer NV

      6,000         111,714      
        344,497         5.7%   

South Africa (Cost $254,399)

         

AngloGold Ashanti Ltd

      2,500         108,391      

Gold Fields Ltd

      5,200         82,224      

Impala Platinum Holdings Ltd

      2,400         53,379      
        243,994         4.0%   

South Korea (Cost $204,016)

         

KT Corp ADR (1)

      4,800         70,608      

SK Telecom Co Ltd ADR

      7,000         101,150      
        171,758         2.8%   

     

Number of

Shares

      Market Value     

% of Net

Assets

  
Common Stock (continued)                        

Spain (Cost $307,275)

         

Banco Popular Espanol SA

      11,500       $ 47,205      

Indra Sistemas SA

      13,200         167,845      
        215,050         3.5%   

Switzerland (Cost $200,584)

         

Novartis AG (Registered)

      3,200         174,344      
        174,344         2.9%   

United Kingdom (Cost $920,275)

         

AstraZeneca PLC

      1,600         71,463      

BAE Systems PLC

      34,800         173,120      

BP PLC

      14,200         111,236      

Home Retail Group PLC

      105,800         171,682      

Lloyds Banking Group PLC (1)

      128,700         71,528      

Tesco PLC

      34,700         174,499      
        773,528         12.7%   

United States (Cost $155,283)

         

Newmont Mining Corp

      2,800         166,320      
                166,320         2.7%   

Total Common Stock (Cost $6,381,969)

               5,763,067         95.0%   
                            

Investment Companies

                           

Northern Institutional Funds-

         

Treasury Portfolio

      245,302         245,302         4.1%   

Total Investment Companies (Cost $245,302)

                           

Total Value of Investments (Total Cost $6,627,271)

               6,008,369         99.1%   

Other Assets less Liabilities

               56,970         0.9%   

Net Assets

             $ 6,065,339         100.0%   

 

(1)

Non-Income Producing Security

(2) 

Security valued at fair value as determined in good faith under policies and procedures established by and under the supervision of the Fund’s Board of Trustees.

Percentages shown are based on Net Assets.

SCHEDULE OF INVESTMENTS (continued)

February 29, 2012

Federal Tax Information:

At February 29, 2012, the components of investments for federal income tax purposes were as follows:

 

Federal tax cost of investments

    $   6,627,271   

Gross tax appreciation of investments

    $ 135,592   

Gross tax depreciation of investments

      (754,494 ) 

Net tax depreciation of investments

    $ (618,902 ) 

At February 29, 2012, the industry sectors for the del Rey Monarch Fund were:

 

INDUSTRY

SECTOR

         % OF LONG-TERM
INVESTMENTS		  

Consumer Discretionary

        9.6 % 

Consumer Staples

        8.3   

Energy

        8.1   

Financials

        9.1   

Health Care

        7.1   

Industrials

        15.0   

Information Technology

        14.2   

Materials

        13.9   

Telecommunication Services

        12.6   

Utilities

          2.1   

Total

          100.0 % 

At February 29, 2012, the del Rey Monarch Fund’s investments were denominated in the following currencies:

 

CONCENTRATION

BY CURRENCY

         % OF LONG-TERM
INVESTMENTS		  

Euro

        29.7 % 

Japanese Yen

        25.8   

British Pound

        16.4   

U.S. Dollar

        15.3   

Hong Kong Dollar

        5.5   

All other currencies less than 5%

          7.3   

Total

          100.0 % 

del Rey Global Investors Funds    (UNAUDITED)
del Rey Monarch Fund     

SCHEDULE OF INVESTMENTS (continued)

February 29, 2012

Various inputs are used in determining the value of the del Rey Fund’s investments. These inputs are summarized in three levels listed below:

Level 1 - Unadjusted quoted market prices in active markets for identical securities on the measurement date.

Level 2 - Other observable inputs (e.g., quoted prices in active markets for similar securities, securities valuations based on commonly quoted benchmark interest rates and yield curves, and/or securities indices).

Level 3 - Valuations based on inputs that are unobservable and significant. The Fund utilized the following technique on Level 3 investments: The Fund valued certain securities using a stale price based on suspension from trading exchanges.

The inputs or methodologies used for valuing securities are not necessarily an indication of the risk associated with investing in those securities and other financial instruments, if any. Following is a summary of the inputs used in valuing the del Rey Monarch Fund’s investments, which are carried at fair value, as of February 29, 2012.

 

INVESTMENTS    LEVEL 1      LEVEL 2      LEVEL 3      TOTAL  

Common Stock

            

Consumer Discretionary

    $ 554,181       $ -       $ -       $ 554,181   

Consumer Staples

      479,373                 -                 -         479,373   

Energy

      468,421         -         -         468,421   

Financials

      528,105         -         -         528,105   

Health Care

      408,510         -         -         408,510   

Industrials

      863,491         -         -         863,491   

Information Technology

      816,322         -         -         816,322   

Materials

      800,272         -         51         800,323   

Telecommunication Services

      725,156         -         -         725,156   

Utilities

      119,185         -         -         119,185   

Investment Companies

      245,302         -         -         245,302   

Total Investments

    $   6,008,318       $ -       $ 51       $   6,008,369   

The Fund discloses significant transfers between levels based on valuations at the end of each reporting period. At February 29, 2012, there were no significant transfers between Level 1 and Level 2 based on levels assigned to the securities on May 31, 2011. GAAP provides additional guidance for estimating fair value when the volume and level of activity for the asset or liability have significantly decreased as well as guidance on identifying circumstances that indicate when a transaction is not orderly.

The following is a reconciliation of investments in which significant unobservable inputs (Level 3) were used in determining fair value:

 

    

BALANCE

AS OF 5/31/2011

     

CHANGE IN

UNREALIZED

DEPRECIATION

     

PURCHASES

     

BALANCE

AS OF 2/29/2012

  

Common Stock

                                    

Materials

    $             -         $        (26,295)       $         26,346       $           51   

The amount of change in net unrealized losses on investments in Level 3 securities still held at February 29, 2012 was approximately $26,295.

Item 2. Controls and Procedures.

 

(a) The Registrant’s Principal Executive Officer and Principal Financial Officer 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”) were effective as of a date within 90 days prior to the filing date of this report (the “Evaluation Date”), based on their evaluation of the effectiveness of the Registrant’s disclosure controls and procedures as of the Evaluation Date.

 

(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) that occurred during the Registrant’s last fiscal quarter that have materially affected, or are reasonably likely to materially affect, the Registrant’s internal control over financial reporting.

Item 3. Exhibits.

 

(a) Certifications of the Principal Executive Officer and Principal Financial Officer of the Registrant as required by Rule 30a-2(a) under the 1940 Act and Section 302 of the Sarbanes-Oxley Act of 2002 are 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.

 

  del Rey Global Investors Funds
By:   /s/ Paul J. Hechmer
 

Paul J. Hechmer, Chief Executive Officer

(Principal Executive Officer)

 
Date:   April 25, 2012

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/ Paul J. Hechmer
 

Paul J. Hechmer, Chief Executive Officer

(Principal Executive Officer)

 
Date:   April 25, 2012

 

By:   /s/ Gerald W. Wheeler
 

Gerald W. Wheeler, Chief Financial Officer

(Principal Financial Officer)

 
Date:   April 25, 2012