FORM N-CSR S
|
Shares
|
Value
|
Shares
|
Value
|
||||
Banks—20.01%
|
Construction—5.46%
|
||||||
457,000
|
Bangkok Bank Public Co., Ltd.
|
$
|
2,754,104
|
195,600
|
Dynasty Ceramic Public Co., Ltd.
|
$
|
315,470
|
437,100
|
Bank of Ayudhya Public Co., Ltd.
|
405,787
|
193,000
|
The Siam Cement Public Co., Ltd.
|
1,919,286
|
||
452,300
|
Kasikornbank Public Co., Ltd.
|
2,305,881
|
Energy—18.34%
|
2,234,756
|
|||
2,948,800
|
Krung Thai Bank Public Co., Ltd.
|
1,494,055
|
27,800
|
Banpu Public Co., Ltd.
|
391,939
|
||
1,012,800
|
Tisco Financial Group Public Co., Ltd.
|
1,227,099
|
343,000
|
PTT Exploration and Production Public Co., Ltd.
|
1,813,421
|
||
8,186,926
|
404,400
|
PTT Public Co., Ltd.
|
4,110,636
|
||||
Commerce—9.14%
|
656,400
|
Thai Oil Public Co., Ltd.
|
1,187,768
|
||||
357,000
|
Berli Jucker Public Co., Ltd.
|
452,199
|
7,503,764
|
||||
10,900
|
Big C Supercenter Public Co., Ltd.
|
73,064
|
Food & Beverage—7.72%
|
||||
1,603,000
|
CP ALL Public Co., Ltd.
|
1,790,842
|
1,681,300
|
Charoen Pokphand Foods Public Co., Ltd.
|
2,037,048
|
||
1,094,400
|
Home Product Center Public Co., Ltd.
|
433,952
|
579,150
|
Minor International Public Co., Ltd.
|
255,161
|
||
107,900
|
Robinson Department Store Public Co., Ltd.
|
210,527
|
382,640
|
Thai Union Frozen Products Public Co., Ltd.
|
863,988
|
||
69,600
|
Siam Makro Public Co., Ltd.
|
779,748
|
Health Care Services—0.54%
|
3,156,197
|
|||
Communication—11.25%
|
3,740,332
|
71,700
|
Bangkok Dusit Medical Services Public Co., Ltd.
|
219,998
|
|||
642,700
|
Advanced Info Service Public Co., Ltd.
|
3,731,642
|
Media & Publishing—0.99%
|
||||
374,000
|
Total Access Communication Public Co., Ltd.
|
870,961
|
254,000
|
BEC World Public Co., Ltd.
|
403,664
|
||
4,602,603
|
|||||||
Shares
|
Value
|
Shares
|
Value
|
|||||
Petrochemicals—7.21%
|
Transportation—1.82%
|
|||||||
1,354,800
|
Indorama Ventures Public Co., Ltd.
|
$
|
1,172,474
|
214,000
|
Airports of Thailand Public Co., Ltd.
|
$
|
402,390
|
|
1,018,462
|
PTT Global Chemical Public Co., Ltd.
|
1,778,825
|
3,190,900
|
Asia Aviation Public Co., Ltd.*
|
341,419
|
|||
2,951,299
|
743,809
|
|||||||
Property Development—9.29%
|
Total Common Stocks
(Cost—$37,713,376)
|
37,542,432
|
||||||
1,247,800
|
Amata Corporation Public Co., Ltd.
|
612,583
|
TIME DEPOSITS—0.54%
|
1,103,000
|
Asian Property Development Public Co., Ltd.
|
251,657
|
Principal
Amount (000)
|
Value
|
||||
364,900
|
Central Pattana Public Co., Ltd.
|
533,976
|
U.S. DOLLAR TIME DEPOSIT—0.54%
|
|||||
6,788,700
|
Hemaraj Land and Development Public Co., Ltd.
|
645,192
|
$219
|
JPMorgan Chase Bank, 0.05%, due 7/2/12 (Cost—$219,011)
|
219,011
|
|||
869,800
|
L.P.N. Development Public Co., Ltd.
|
470,807
|
Total Investments—92.31% (Cost—$37,932,387)
|
37,761,443
|
||||
841,700
|
Land and Houses Public Co., Ltd.
|
206,608
|
Other assets less liabilities—7.69%
|
3,145,907
|
||||
1,504,800
|
SinoThai Engineering & Construction Public Co., Ltd.
|
677,189
|
NET ASSETS (Applicable to
3,564,814 shares of capital stock outstanding;
|
|||||
745,300
|
Supalai Public Co., Ltd.
|
401,072
|
equivalent to $11.48 per share) 100.00% |
$40,907,350
|
||||
3,799,084
|
||||||||
_____________________
* Non-income producing security.
|
||||||||
EQUITY CLASSIFICATIONS HELD
June 30, 2012 (unaudited)
|
TEN LARGEST EQUITY POSITIONS HELD
June 30, 2012 (unaudited)
|
|||
Industry
|
Percent of
Net Assets
|
Issue
|
Percent of
Net Assets
|
|
Banks
|
20.01%
|
PTT Public Co., Ltd.
|
10.05%
|
|
Energy
Communication
|
18.34
11.25
|
Advanced Info Service
Public Co., Ltd.
|
9.12
|
|
Property Development
|
9.29
|
Bangkok Bank Public Co., Ltd.
|
6.73
|
|
Commerce
|
9.14
|
Kasikornbank Public Co., Ltd.
|
5.64
|
|
Food & Beverage
Petrochemicals
|
7.72
7.21
|
Charoen Pokphand Foods
Public Co., Ltd.
|
4.98
|
|
Construction
|
5.46
|
The Siam Cement Public Co., Ltd.
|
4.69
|
|
Transportation
Media & Publishing
|
1.82
0.99
|
PTT Exploration and Production
Public Co., Ltd.
|
4.43
|
|
Health Care Services
|
0.54
|
CP ALL Public Co., Ltd.
|
4.38
|
|
PTT Global Chemical Public Co., Ltd.
|
4.35
|
|||
Krung Thai Bank Public Co., Ltd.
|
3.65
|
Assets
|
||||
Investment in securities, at value (cost—$37,932,387)
|
$ | 37,761,443 | ||
Cash denominated in foreign currency (cost—$3,443,282)
|
3,441,891 | |||
Interest receivable
|
485 | |||
Prepaid expenses
|
17,763 | |||
Total assets
|
41,221,582 | |||
Liabilities
|
||||
Accrued Thai tax provision
|
188,627 | |||
Payable for management fees
|
23,118 | |||
Audit and tax services
|
47,922 | |||
Accrued expenses and other liabilities
|
54,565 | |||
Total liabilities
|
314,232 | |||
Net Assets
|
$ | 40,907,350 | ||
Net Assets consist of:
|
||||
Capital stock, $0.01 par value per share; total 100,000,000 shares authorized;
3,564,814 shares issued and outstanding
|
$ | 35,648 | ||
Paid-in capital in excess of par value
|
39,508,304 | |||
Undistributed net investment income
|
293,490 | |||
Undistributed net realized gain on investments and foreign currency transactions
|
976,780 | |||
Net unrealized appreciation on investments and other assets and liabilities
denominated in foreign currency
|
93,128 | |||
Net assets applicable to shares outstanding
|
$ | 40,907,350 | ||
Net Asset Value Per Share
|
$ | 11.48 | ||
Investment income:
|
||||
Dividends
|
$ | 770,570 | ||
Interest
|
5,984 | |||
Total investment income
|
776,554 | |||
Expenses:
|
||||
Investment management fee
|
121,680 | |||
Legal fees and expenses
|
91,561 | |||
Administration fee and expenses
|
89,881 | |||
Audit and tax services
|
44,008 | |||
Thai withholding tax
|
28,142 | |||
Reports and notices to stockholders
|
23,869 | |||
Directors' fees and expenses
|
23,869 | |||
Custodian fees and expenses
|
23,737 | |||
Marketing expense
|
9,891 | |||
Transfer agency fee and expenses
|
6,365 | |||
Insurance expense
|
2,829 | |||
Other
|
30,713 | |||
Total expenses before expense waivers
|
496,545 | |||
Less waiver of:
|
||||
Administration fee
|
(25,000 | ) | ||
Net expenses
|
471,545 | |||
Net investment income
|
305,009 | |||
Realized and unrealized gains from investment activities and foreign currency transactions:
|
||||
Net realized gains on investments, net of $140,615 Thai tax provision
|
1,126,189 | |||
Net realized losses on foreign currency transactions
|
(51,501 | ) | ||
Net change in unrealized appreciation (depreciation) on equity investments
|
3,669,784 | |||
Net change in unrealized appreciation (depreciation) on short-term investments and other assets and liabilities denominated in foreign currency
|
12,696 | |||
Net realized and unrealized gains from investment activities and foreign currency transactions
|
4,757,168 | |||
Net increase in net assets resulting from operations
|
$ | 5,062,177 | ||
For the Six
Months
Ended
June 30, 2012 (unaudited)
|
For the Year Ended
December 31, 2011
|
|||||||
Increase (decrease) in net assets from operations:
|
||||||||
Net investment income
|
$ | 305,009 | $ | 754,573 | ||||
Net realized gain (loss) on:
|
||||||||
Investments
|
1,126,189 | (63,934 | ) | |||||
Foreign currency transactions
|
(51,501 | ) | (140,309 | ) | ||||
Net change in unrealized appreciation (depreciation) on:
|
||||||||
Investments in equity securities
|
3,669,784 | (7,805,019 | ) | |||||
Translation of short-term investments and other assets and liabilities denominated in foreign currency
|
12,696 | (16,586 | ) | |||||
Net increase(decrease) in net assets resulting from operations
|
5,062,177 | (7,271,275 | ) | |||||
Dividends and distributions to shareholders from:
|
||||||||
Net realized gains from investment and foreign currency transactions
|
— | (8,980,989 | ) | |||||
Net investment income
|
— | (309,689 | ) | |||||
Total dividends and distributions to shareholders
|
— | (9,290,678 | ) | |||||
From capital stock transactions:
|
||||||||
Sale of capital stock resulting from reinvestment of dividends
|
— | 1,158,975 | ||||||
Net increase(decrease)in net assets
|
5,062,177 | (15,402,978 | ) | |||||
Net assets:
|
||||||||
Beginning of period
|
35,845,173 | 51,248,151 | ||||||
End of period (including undistributed net investment income and accumulated net investment loss of $293,490 and $11,519, respectively)
|
$ | 40,907,350 | $ | 35,845,173 | ||||
Valuation Inputs
|
Investments in Securities
|
Level 1—Quoted Prices
|
$37,761,443
|
Level 2—Other Significant Observable Inputs
|
—
|
Level 3— Significant Unobservable Inputs
|
—
|
Total
|
$37,761,443
|
For the Six
Months Ended
June 30, 2012 (unaudited)
|
For the Years Ended December 31,
|
|||||||||||||||||||||||
2011
|
2010
|
2009
|
2008
|
2007
|
||||||||||||||||||||
Net asset value, beginning of period
|
$ | 10.06 | $ | 14.89 | $ | 11.62 | $ | 7.32 | $ | 13.27 | $ | 10.11 | ||||||||||||
Net investment income
|
0.09 | * | 0.21 | (a) | 0.26 | * | 0.13 | * | 0.14 | * | 0.17 | * | ||||||||||||
Net realized and unrealized gains (losses) on investments and foreign currency transactions
|
1.33 | * | (2.29 | )* | 6.20 | * | 4.34 | * | (6.01 | ) | 3.19 | * | ||||||||||||
Net increase (decrease) in net asset value resulting from operations
|
1.42 | (2.08 | ) | 6.46 | 4.47 | (5.87 | ) | 3.36 | ||||||||||||||||
Less: dividends and distributions to shareholders
|
||||||||||||||||||||||||
Net investment income
|
— | (0.09 | ) | (0.06 | ) | (0.17 | ) | (0.08 | ) | (0.20 | ) | |||||||||||||
Net realized gains on investments and foreign currency transactions
|
— | (2.61 | ) | (3.05 | ) | — | — | — | ||||||||||||||||
Total dividends and distributions to shareholders
|
— | (2.70 | ) | (3.11 | ) | — | — | — | ||||||||||||||||
Dilutive effect of dividend reinvestment
|
— | (0.05 | ) | (0.08 | ) | — | — | — | ||||||||||||||||
Net asset value, end of period
|
$ | 11.48 | $ | 10.06 | $ | 14.89 | $ | 11.62 | $ | 7.32 | $ | 13.27 | ||||||||||||
Per share market value, end of period
|
$ | 11.04 | $ | 8.60 | $ | 13.63 | $ | 9.83 | $ | 6.71 | $ | 13.59 | ||||||||||||
Total investment return:
|
||||||||||||||||||||||||
Based on market price at beginning and end of period, assuming reinvestment of dividends
|
28.37 | % | (18.70 | )% | 69.70 | % | 49.11 | % | (50.00 | )% | 23.09 | % | ||||||||||||
Based on net asset value at beginning and end of period, assuming reinvestment of dividends
|
14.12 | % | (12.95 | )% | 56.83 | % | 61.57 | % | (44.14 | )% | 33.27 | % |
For the Six
Months Ended
June 30, 2012 (unaudited)
|
For the Years Ended December 31,
|
|||||||||||||||||||||||
Ratios and supplemental data:
|
2011
|
2010
|
2009
|
2008
|
2007
|
|||||||||||||||||||
Net assets, end of period (in millions)
|
$ | 40.9 | $ | 35.8 | $ | 51.2 | $ | 36.9 | $ | 23.2 | $ | 42.0 | ||||||||||||
Ratios to average net assets of:
|
||||||||||||||||||||||||
Expenses, before waivers of Administration and Advisory fees and including Thai taxes applicable to net investment income
|
2.44 | %** | 2.30 | % | 2.65 | % | 3.12 | % | 3.19 | % | 2.74 | % | ||||||||||||
Expenses, before waivers of Administration and Advisory fees and excluding Thai taxes applicable to net investment income
|
2.30 | %** | 2.30 | % | 2.44 | % | 2.93 | % | 3.11 | % | 2.57 | % | ||||||||||||
Expenses, after waivers of Administration and Advisory fees and including Thai taxes applicable to net investment income
|
2.32 | %** | 1.99 | % | 2.14 | % | 2.55 | % | 2.65 | % | 2.20 | % | ||||||||||||
Expenses, after waivers of Administration and Advisory fees and excluding Thai taxes applicable to net investment income
|
2.18 | %** | 1.99 | % | 1.94 | % | 2.36 | % | 2.57 | % | 2.04 | % | ||||||||||||
Net investment income
|
1.50 | %** | 1.78 | % | 1.82 | % | 1.44 | % | 1.21 | % | 1.45 | % | ||||||||||||
Portfolio turnover
|
51.27 | % | 199.06 | % | 244.77 | % | 70.92 | % | 80.06 | % | 90.30 | % |
*
|
After Thai taxes applicable to net investment income and/or net realized and unrealized gains (losses).
|
(a)
|
Calculated based on average shares outstanding.
|
(b)
|
Total investment return based on market value is calculated assuming that shares of the Fund's common stock were purchased at the closing market price as of the beginning of the year, dividends, capital gains and other distributions were reinvested as provided for in the Fund's dividend reinvestment plan and then sold at the closing market price per share on the last day of the period. The computation does not reflect any sales commission investors may incur in purchasing or selling shares of the Fund. The total investment return based on the net asset value is similarily computed except that the Fund's net asset value is substituted for the closing market value.
|
**
|
Annualized.
|
Number of Shares/Votes
|
||
Class III
|
Voted For
|
Proxy Authority Withheld
|
Richard J. Herring
|
2,665,956
|
42,305
|
Number of Shares/Votes
|
||
Voted For
|
Voted Against
|
Votes Abstain
|
1,804,569
|
114,870
|
6,573
|
·
|
Applications and other forms you submit to us.
|
·
|
Dealings and transactions with us or others.
|
BOARD OF DIRECTORS
Martin J. Gruber, Chairman
David G. Harmer
Richard J. Herring
Rahn K. Porter
|
||
OFFICERS
John J. O'Keefe
Vice President, Treasurer and 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
|
Semi-Annual Report
June 30, 2012
|
|
INVESTMENT MANAGER
SCB Asset Management Co., Ltd.
ADMINISTRATOR
Daiwa Securities Trust Company
CUSTODIANS
Bangkok Bank Public Company, Ltd.
(Thai Custodian)
Daiwa Securities Trust Company
(U.S. Custodian)
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 stockholders 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 Public Accounting Firm which does not express an opinion thereon.
|
||
(a)
|
The registrant's principal executive and principal financial officers 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 Securities Exchange Act of 1934 (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 that have materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting.
|
(a)(1)
|
Code of Ethics for Principal Executive and Senior Financial Officers.
|
(a)(2)
|
Certifications required by Rule 30a2(a) of the Investment Company Act of 1940, as amended
|
(b)
|
Certifications required by Section 906 of the Sarbanes-Oxley Act of 2002.
|
(c)
|
Proxy Voting Guidelines for the registrant and its adviser.
|
The Thai Capital Fund, Inc.
|
|
By /s/ John J. O'Keefe
|
|
John J. O'Keefe, Principal Financial Officer
|
By /s/ John J. O'Keefe
|
|
John J. O'Keefe, Principal Financial Officer
|
By /s/ Anthony Cambria
|
|
Anthony Cambria, Principal Executive Officer
|
1.
|
I have reviewed this report on Form N-CSR of The Thai Capital 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-3(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 over financial reporting 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 control over financial reporting.
|
Date: August 29, 2012
|
|
By /s/ John J. O'Keefe
|
|
John J. O'Keefe, Principal Financial Officer
|
1.
|
I have reviewed this report on Form N-CSR of The Thai Capital 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-3(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 over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize, and report financial information; and
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(b)
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Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.
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Date: August 29, 2012
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By /s/ Anthony Cambria
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Anthony Cambria, Principal Executive Officer
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1.
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Such Form N-CSR fully complies with the requirements of section 13(a) or 15(d) of the Securities Exchange Act of 1934; and
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2.
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The information contained in such Form N-CSR fairly presents, in all material respects, the financial condition and results of operations of the Fund.
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Date: August 29, 2012
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By /s/ John J. O'Keefe
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John J. O'Keefe, Principal Financial Officer
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1.
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Such Form N-CSR fully complies with the requirements of section 13(a) or 15(d) of the Securities Exchange Act of 1934; and
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2.
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The information contained in such Form N-CSR fairly presents, in all material respects, the financial condition and results of operations of the Fund.
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Date: August 29, 2012
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By /s/ Anthony Cambria
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Anthony Cambria, Principal Executive Officer
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