N-Q 1 lp1-327.htm FORM N-Q lp1-327.htm - Generated by SEC Publisher for SEC Filing

 

 

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

811-07502

 

 

 

Dreyfus International Funds, Inc.

 

 

(Exact name of Registrant as specified in charter)

 

 

 

 

 

 

c/o The Dreyfus Corporation

200 Park Avenue

New York, New York  10166

 

 

(Address of principal executive offices)        (Zip code)

 

 

 

 

 

Bennett A. MacDougall, Esq.

200 Park Avenue

New York, New York  10166

 

 

(Name and address of agent for service)

 

 

Registrant's telephone number, including area code: 

(212) 922-6400

 

 

Date of fiscal year end:

 

  05/31

 

Date of reporting period:

  08/31/16

 

             

 


 

FORM N-Q

Item 1.                         Schedule of Investments.


 

STATEMENT OF INVESTMENTS
Dreyfus Emerging Markets Fund
August 31, 2016 (Unaudited)

Common Stocks - 96.9%  Shares   Value ($) 
Brazil - 8.4%       
AES Tiete Energia  75,600   390,970 
Banco do Brasil  183,700   1,320,351 
BRF, ADR  20,366   340,723 
Cia Hering  151,200   835,318 
Duratex  213,071   573,389 
Embraer, ADR  56,026   986,618 
Fibria Celulose  54,600   372,150 
Fibria Celulose, ADR  126,387   867,015 
Gerdau, ADR  347,382   958,774 
JBS  413,800   1,601,790 
Magnesita Refratarios  98,380 a  502,380 
Petroleo Brasileiro, ADR  129,040 a  1,179,426 
Telefonica Brasil, ADR  49,209   735,182 
Vale, ADR  54,847   244,069 
      10,908,155 
Chile - 2.3%       
Cencosud  260,788   766,240 
Empresa Nacional de Telecomunicaciones  154,595 a  1,458,068 
Itau CorpBanca  96,391,275   825,711 
      3,050,019 
China - 20.5%       
Air China, Cl. H  1,112,000   822,796 
Anhui Conch Cement, Cl. H  611,000   1,717,011 
CAR  823,000 a  779,763 
China Communications Services, Cl. H  2,990,000   1,757,565 
China Construction Bank, Cl. H  4,923,399   3,681,022 
China Life Insurance, Cl. H  681,000   1,627,542 
China Railway Construction, Cl. H  399,500   488,718 
China Shenhua Energy, Cl. H  444,500   798,748 
China ZhengTong Auto Services Holdings  1,102,500   383,723 
CNOOC  817,000   1,003,669 
Dongfeng Motor Group, Cl. H  778,000   831,399 
ENN Energy Holdings  120,000   672,119 
Haitong Securities, Cl. H  528,000   918,847 
Industrial & Commercial Bank of China, Cl. H  6,369,090   4,047,620 

 


 

STATEMENT OF INVESTMENTS (Unaudited) (continued)

Common Stocks - 96.9% (continued)  Shares   Value ($) 
China - 20.5% (continued)       
Lianhua Supermarket Holdings, Cl. H  2,232,000 a  969,615 
Parkson Retail Group  9,174,452   768,721 
Ping An Insurance Group Company of China, Cl. H  254,500   1,317,191 
Shanghai Pharmaceuticals Holding, Cl. H  193,000   529,922 
Sinotrans, Cl. H  1,718,000   850,413 
Weichai Power, Cl. H  1,188,000   1,499,252 
Zhejiang Expressway, Cl. H  970,000   1,081,591 
      26,547,247 
Hong Kong - 10.0%       
Brilliance China Automotive Holdings  912,000   1,042,783 
China Mobile  267,500   3,303,427 
China Resources Cement Holdings  1,222,000   478,873 
China Resources Power Holdings  955,989   1,651,327 
COSCO SHIPPING Ports  2,503,228   2,710,536 
Galaxy Entertainment Group  144,000   468,705 
Haier Electronics Group  434,000   726,173 
Lee & Man Paper Manufacturing  388,000   313,099 
Shanghai Industrial Holdings  858,000   2,234,159 
      12,929,082 
Hungary - .6%       
Richter Gedeon  35,431   726,834 
India - 10.4%       
Bank of India  676,251 a  1,183,969 
Bharat Heavy Electricals  157,531   327,200 
Chennai Super Kings Cricket  5,440,206 a,b  0 
Glenmark Pharmaceuticals  30,458   382,533 
ICICI Bank  287,433   1,107,327 
India Cements  636,145   1,422,943 
NMDC  339,461   547,436 
NTPC  509,811   1,212,295 
Punjab National Bank  525,813 a  1,001,455 
Reliance Industries  148,233   2,346,229 
Rolta India  78,581   75,859 
State Bank of India  551,677   2,080,013 
Steel Authority of India  779,254 a  560,849 
Tech Mahindra  179,762   1,258,361 
      13,506,469 
Indonesia - 1.6%       
Astra Agro Lestari  609,466 a  753,505 
Astra International  1,089,000   669,080 

 


 

Common Stocks - 96.9% (continued)  Shares   Value ($) 
Indonesia - 1.6% (continued)       
Bank CIMB Niaga  176,062 a  11,083 
Indocement Tunggal Prakarsa  507,400   677,043 
      2,110,711 
Malaysia - 1.0%       
CIMB Group Holdings  1,125,032   1,331,563 
Mexico - 2.8%       
Alpek  245,540   424,060 
Controladora Vuela Cia de Aviacion, ADR  37,080 a  659,653 
Grupo Financiero Santander Mexico, Cl. B, ADR  95,432   913,284 
Mexichem  371,400   857,868 
Nemak  693,400 c  785,330 
      3,640,195 
Philippines - .4%       
Metropolitan Bank & Trust  300,840   539,117 
Poland - 2.0%       
Powszechna Kasa Oszczednosci Bank Polski  206,484 a  1,403,733 
Powszechny Zaklad Ubezpieczen  175,694   1,242,964 
      2,646,697 
Russia - 3.7%       
Gazprom, ADR  241,454   976,681 
Lukoil, ADR  23,058   1,034,151 
Magnit  6,535 b  1,027,198 
MegaFon, GDR  66,325   673,199 
MegaFon, GDR  23,488 b,c  240,865 
Sberbank of Russia, ADR  93,934   861,375 
      4,813,469 
South Africa - 3.7%       
Barclays Africa Group  106,992   1,083,601 
Imperial Holdings  72,631   779,170 
Nampak  525,226   676,985 
Pioneer Foods Group  21,734   251,311 
Sasol  24,152   608,088 
Shoprite Holdings  23,254   298,148 
The Foschini Group  123,508   1,098,064 
      4,795,367 
South Korea - 17.9%       
Com2uS  7,854 a  726,935 
E-MART  12,346   1,743,942 
Hankook Tire  16,904   845,958 
Hyundai Marine & Fire Insurance  31,496   954,767 

 


 

STATEMENT OF INVESTMENTS (Unaudited) (continued)

Common Stocks - 96.9% (continued)  Shares   Value ($) 
South Korea - 17.9% (continued)       
Hyundai Mobis  4,540   1,060,691 
KB Financial Group  42,962   1,498,854 
KCC  1,997   738,800 
Kia Motors  36,682   1,380,099 
Korea Electric Power  7,779   404,648 
Korea Investment Holdings  16,042   576,937 
KT  14,057   398,387 
KT, ADR  49,747   772,571 
LG  11,585   684,710 
LG Chem  4,031   977,924 
LG Display  29,947   807,092 
POSCO  5,582   1,156,450 
Samsung Electronics  4,255   6,182,152 
Shinhan Financial Group  30,123   1,107,662 
SK Hynix  35,352   1,155,678 
      23,174,257 
Taiwan - 7.1%       
Advanced Semiconductor Engineering  964,840   1,185,886 
Casetek Holdings  194,000   681,710 
Hon Hai Precision Industry  417,340   1,157,433 
MediaTek  108,000   849,214 
Quanta Computer  370,000   684,483 
Shin Kong Financial Holding  3,515,713 a  771,162 
Simplo Technology  182,000   599,392 
Taiwan Semiconductor Manufacturing  466,638   2,588,307 
Yuanta Financial Holding  2,131,000   755,543 
      9,273,130 
Thailand - 2.0%       
Bangkok Bank  380,760   1,864,449 
Thai Oil  336,300   687,358 
      2,551,807 
Turkey - 1.7%       
Cola-Cola Icecek  36,713   458,812 
Enka Insaat ve Sanayi  349,972   517,127 
Turkiye Halk Bankasi  401,447   1,205,379 
      2,181,318 
United Arab Emirates - .6%       
Emaar Properties  408,211   789,061 

 


 

Common Stocks - 96.9% (continued)  Shares   Value ($) 
United States - .2%       
iShares MSCI Emerging Markets ETF  8,460   309,044 
Total Common Stocks (cost $109,880,773)      125,823,542 
Preferred Stocks - 2.2%  Shares   Value ($) 
Brazil - 2.2%       
Banco do Estado do Rio Grande do Sul, Cl. B  277,900   929,431 
Itausa - Investimentos Itau  177,504   472,728 
Marcopolo  550,900 a  549,330 
Randon Implementos e Participacoes  663,701 a  926,945 
(cost $1,893,838)      2,878,434 
  Number of    
Rights - .0%  Rights   Value ($) 
Brazil - .0%       
AES Tiete Energia       
(cost $2,411)  2,423 a  3,099 
Other Investment - .5%  Shares   Value ($) 
Registered Investment Company;       
Dreyfus Institutional Preferred Plus Money Market Fund       
(cost $588,836)  588,836 d  588,836 
Total Investments (cost $112,365,858)  99.6 %  129,293,911 
Cash and Receivables (Net)  .4 %  520,357 
Net Assets  100.0 %  129,814,268 

 

ADR—American Depository Receipt
ETF—Exchange-Traded Fund
GDR—Global Depository Receipt

a     

Non-income producing security.

b     

The valuation of this security has been determined in good faith by management under the direction of the Board of Directors. At August 31, 2016, the value of these securities amounted to $1,268,063 or .98% of net assets.

c     

Security exempt from registration pursuant to Rule 144A under the Securities Act of 1933. These securities may be resold in transactions exempt from registration, normally to qualified institutional buyers. At August 31, 2016, these securities were valued at $1,026,195 or .79% of net assets.

d     

Investment in affiliated money market mutual fund.


 

STATEMENT OF INVESTMENTS (Unaudited) (continued)

Portfolio Summary (Unaudited)  Value (%) 
Financials  29.1 
Information Technology  13.8 
Industrials  11.5 
Materials  10.3 
Consumer Discretionary  9.7 
Telecommunication Services  7.2 
Energy  6.6 
Consumer Staples  6.3 
Utilities  3.3 
Health Care  1.3 
Money Market Investment  .5 
  99.6 

 

Based on net assets.
See notes to financial statements.


 

STATEMENT OF INVESTMENTS
Dreyfus Emerging Markets Fund
August 31, 2016 (Unaudited)

The following is a summary of the inputs used as of August 31, 2016 in valuing the fund’s investments:

    Level 2 - Other   Level 3 -     
  Level 1 -  Significant   Significant     
  Unadjusted Quoted  Observable   Unobservable     
  Prices  Inputs   Inputs  Total  
Assets ($)             
Investments in Securities:             
Equity Securities - Foreign             
Common Stocks  124,246,435  1,268,063 ††  0  125,514,498  
Equity Securities - Foreign             
Preferred Stocks  2,878,434  -   -  2,878,434  
Exchange-Traded Funds  309,044  -   -  309,044  
Mutual Funds  588,836  -   -  588,836  
Rights  3,099  -   -  3,099  
Other Financial Instruments:             
Forward Foreign Currency             
Exchange Contracts†††  -  1   -  1  
Liabilities ($)             
Other Financial Instruments:             
Forward Foreign Currency             
Exchange Contracts†††  -  (303 )  -  (303 ) 

 

  See Statement of Investments for additional detailed categorizations. 
††  Securities classified within Level 2 at period end as the values were determined pursuant to the fund’s fair valuation procedures. See 
  note above for additional information. 
†††  Amount shown represents unrealized appreciation (depreciation) at period end. 

 

The following is a reconciliation of Level 3 assets for which significant unobservable inputs were used to determine fair value:

  Equity Securities— 
  Foreign Common Stock ($) 
Balance as of 5/31/2016  0 
Realized gain (loss)  - 
Change in unrealized appreciation (depreciation)  - 
Purchases/Issuances  - 
Sales/Dispositions  - 
Transfers into Level 3  - 
Transfers out of Level 3  - 
Balance as of 8/31/2016  0 
The amount of total gains (losses) for the period   
included in earnings attributable to the change in   
unrealized gains (losses) relating to investments   
still held at 8/31/2016  - 

 


 

NOTES

The Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) is the exclusive reference of authoritative U.S. generally accepted accounting principles (“GAAP”) recognized by the FASB to be applied by nongovernmental entities. Rules and interpretive releases of the Securities and Exchange Commission (“SEC”) under authority of federal laws are also sources of authoritative GAAP for SEC registrants. The fund’s financial statements are prepared in accordance with GAAP, which may require the use of management estimates and assumptions. Actual results could differ from those estimates.

The fair value of a financial instrument is the amount that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date (i.e., the exit price). GAAP establishes a fair value hierarchy that prioritizes the inputs of valuation techniques used to measure fair value. This hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1 measurements) and the lowest priority to unobservable inputs (Level 3 measurements).

Additionally, GAAP provides guidance on determining whether the volume and activity in a market has decreased significantly and whether such a decrease in activity results in transactions that are not orderly. GAAP requires enhanced disclosures around valuation inputs and techniques used during annual and interim periods.

Various inputs are used in determining the value of the fund’s investments relating to fair value measurements. These inputs are summarized in the three broad levels listed below:

Level 1—unadjusted quoted prices in active markets for identical investments.

Level 2—other significant observable inputs (including quoted prices for similar investments, interest rates, prepayment speeds, credit risk, etc.).

Level 3—significant unobservable inputs (including the fund’s own assumptions in determining the fair value of investments).

The inputs or methodology used for valuing securities are not necessarily an indication of the risk associated with investing in those securities.

Changes in valuation techniques may result in transfers in or out of an assigned level within the disclosure hierarchy. Valuation techniques used to value the fund’s investments are as follows:

Investments in securities are valued at the last sales price on the securities exchange or national securities market on which such securities are primarily traded. Securities listed on the National Market System for which market quotations are available are valued at the official closing price or, if there is no official closing price that day, at the last sales price. For open short positions, asked prices are used for valuation purposes. Bid price is used when no asked price is available. Registered investment companies that are not


 

NOTES

traded on an exchange are valued at their net asset value. All of the preceding securities are generally categorized within Level 1 of the fair value hierarchy.

Securities not listed on an exchange or the national securities market, or securities for which there were no transactions, are valued at the average of the most recent bid and asked prices. These securities are generally categorized within Level 2 of the fair value hierarchy.

Fair valuing of securities may be determined with the assistance of a pricing service using calculations based on indices of domestic securities and other appropriate indicators, such as prices of relevant American Depository Receipts and financial futures. Utilizing these techniques may result in transfers between Level 1 and Level 2 of the fair value hierarchy.

When market quotations or official closing prices are not readily available, or are determined not to reflect accurately fair value, such as when the value of a security has been significantly affected by events after the close of the exchange or market on which the security is principally traded (for example, a foreign exchange or market), but before the fund calculates its net asset value, the fund may value these investments at fair value as determined in accordance with the procedures approved by the fund's Board Members (the "Board"). Certain factors may be considered when fair valuing investments such as: fundamental analytical data, the nature and duration of restrictions on disposition, an evaluation of the forces that influence the market in which the securities are purchased and sold, and public trading in similar securities of the issuer or comparable issuers. These securities are either categorized within Level 2 or 3 of the fair value hierarchy depending on the relevant inputs used.

For restricted securities where observable inputs are limited, assumptions about market activity and risk are used and are generally categorized within Level 3 of the fair value hierarchy.

Investments denominated in foreign currencies are translated to U.S. dollars at the prevailing rates of exchange.

Forward foreign currency exchange contracts ("forward contracts") are valued at the forward rate and are generally categorized within Level 2 of the fair value hierarchy.

Derivatives: A derivative is a financial instrument whose performance is derived from the performance of another asset. Each type of derivative instrument that was held by the fund at August 31, 2016 is discussed below.

Forward Foreign Currency Exchange Contracts: The fund enters into forward contracts in order to hedge its exposure to changes in foreign currency exchange rates on its foreign portfolio holdings, to settle foreign currency transactions or as a part of its investment strategy. When executing forward contracts, the fund is obligated to buy or sell a foreign currency at a specified rate on a certain date in the future. With respect to sales of forward contracts, the fund incurs a loss if the value of the contract increases between the date the forward contract is opened and the date the forward contract is


 

NOTES

closed. The fund realizes a gain if the value of the contract decreases between those dates. With respect to purchases of forward contracts, the fund incurs a loss if the value of the contract decreases between the date the forward contract is opened and the date the forward contract is closed. The fund realizes a gain if the value of the contract increases between those dates. Any realized or unrealized gains or losses which occurred during the period are reflected in the Statement of Operations. The fund is exposed to foreign currency risk as a result of changes in value of underlying financial instruments. The fund is also exposed to credit risk associated with counterparty nonperformance on these forward contracts, which is generally limited to the unrealized gain on each open contract. This risk may be mitigated by Master Agreements, if any, between the fund and the counterparty and the posting of collateral, if any, by the counterparty to the fund to cover the fund’s exposure to the counterparty. The following summarizes open forward contracts at August 31, 2016.

Forward Foreign           
Currency        Unrealized  
Exchange  Foreign Currency  Cost    Appreciation  
Contracts  Amounts  ($)  Value ($) (Depreciation)($)  
Purchases:           
Barclays Bank           
South African           
Rand,           
Expiring           
9/2/2016  1,693,296  115,478  115,175  (303 ) 
Sales:           
Citigroup           
Hong Kong Dollar           
Expiring           
9/1/2016  728,755  93,942  93,941  1  
Gross Unrealized Appreciation      1  
Gross Unrealized Depreciation      (303 ) 

 

At August 31, 2016, accumulated net unrealized appreciation on investments was $16,928,053, consisting of $24,998,439 gross unrealized appreciation and $8,070,386 gross unrealized depreciation.

At August 31, 2016, the cost of investments for federal income tax purposes was substantially the same as the cost for financial reporting purposes (see the Statement of Investments).

Additional investment related disclosures are hereby incorporated by reference to the annual and semi-annual reports previously filed with the SEC on Form N-CSR.


 

 

Item 2.             Controls and Procedures.

(a)        The Registrant's principal executive and principal financial officers have concluded, based on their evaluation of the Registrant's disclosure controls and procedures as of a date within 90 days of the filing date of this report, that the Registrant's disclosure controls and procedures are reasonably designed to ensure that information required to be disclosed by the Registrant on Form N-Q is recorded, processed, summarized and reported within the required time periods and that information required to be disclosed by the Registrant in the reports that it files or submits on Form N-Q is accumulated and communicated to the Registrant's management, including its principal executive and principal financial officers, as appropriate to allow timely decisions regarding required disclosure.

(b)        There were no changes to the Registrant's internal control over financial reporting that occurred during the Registrant's most recently ended 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 principal executive and principal financial officers as required by Rule 30a-2(a) under the Investment Company Act of 1940.


 

FORM N-Q

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.

Dreyfus International Funds, Inc.

 

By:       /s/ Bradley J. Skapyak

            Bradley J. Skapyak

            President

 

Date:    October 14, 2016

 

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/ Bradley J. Skapyak

            Bradley J. Skapyak

            President

 

Date:    October 14, 2016

 

By:       /s/ James Windels

            James Windels

            Treasurer

 

Date:    October 14, 2016

 

EXHIBIT INDEX

(a)        Certifications of principal executive and principal financial officers as required by Rule 30a-2(a) under the Investment Company Act of 1940.  (EX-99.CERT)