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 |
811-08238 |
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MORGAN STANLEY INDIA INVESTMENT FUND, INC. |
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(Exact name of registrant as specified in charter) |
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522 Fifth Avenue, New York, New York |
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10036 |
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(Address of principal executive offices) |
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(Zip code) |
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Sara Furber 522 Fifth Avenue, New York, New York 10036 |
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(Name and address of agent for service) |
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Registrants telephone number, including area code: |
212-296-6963 |
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Date of fiscal year end: |
12/31 |
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Date of reporting period: |
9/30/10 |
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Item 1. Schedule of Investments.
The Funds schedule of investments as of the close of the reporting period prepared pursuant to Rule 12-12 of Regulation S-X is as follows:
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2010 Third Quarter Report |
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September 30, 2010 (unaudited) |
Portfolio of Investments
MS India Investment Fund, Inc.
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Shares |
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Value |
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Common Stocks (98.0%) |
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Airlines (1.3%) |
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SpiceJet Ltd. (a) |
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4,994,091 |
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$ |
8,313 |
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Auto Components (0.0%) |
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Apollo Tyres Ltd. |
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18,750 |
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34 |
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Automobiles (2.5%) |
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Bajaj Auto Ltd. |
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505,000 |
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16,519 |
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Hero Honda Motors Ltd. |
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1,185 |
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49 |
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Patheja Forgings & Auto Parts Manufactures Ltd. (a)(b)(c) |
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450,000 |
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16,568 |
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Chemicals (2.2%) |
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Akzo Nobel India Ltd. |
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25,000 |
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516 |
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Asian Paints Ltd. |
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118,258 |
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7,009 |
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Coromandel International Ltd. |
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499,500 |
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6,833 |
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14,358 |
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Commercial Banks (20.1%) |
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Bank of Baroda |
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469,893 |
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9,448 |
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HDFC Bank Ltd. |
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964,569 |
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53,436 |
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ICICI Bank Ltd. |
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551,600 |
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13,662 |
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IndusInd Bank Ltd. |
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3,645,291 |
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21,571 |
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Punjab National Bank Ltd. |
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181,000 |
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5,782 |
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State Bank of India |
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285,902 |
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20,617 |
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Yes Bank Ltd. |
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1,002,132 |
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7,809 |
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132,325 |
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Construction & Engineering (5.1%) |
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Gammon India Ltd. |
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2,160,800 |
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10,587 |
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Hindustan Construction Co. |
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1,560,770 |
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2,044 |
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Larsen & Toubro Ltd. |
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339,040 |
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15,491 |
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Voltas Ltd. |
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1,076,227 |
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5,844 |
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33,966 |
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Containers & Packaging (0.9%) |
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Ess Dee Aluminium Ltd. |
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549,519 |
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6,037 |
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Diversified Financial Services (4.1%) |
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Infrastructure Development Finance Co. Ltd. |
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3,352,860 |
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15,128 |
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Rural Electrification Corp. Ltd. |
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1,548,977 |
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12,134 |
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27,262 |
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Electric Utilities (3.0%) |
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KSK Energy Ventures Ltd. (a) |
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2,948,000 |
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11,409 |
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Reliance Infrastructure Ltd. |
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347,500 |
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8,268 |
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Torrent Power Ltd. |
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62,120 |
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448 |
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20,125 |
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Electronic Equipment, Instruments & Components (1.1%) |
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Redington India Ltd. |
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3,615,000 |
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7,285 |
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2010 Third Quarter Report |
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September 30, 2010 (unaudited) |
Portfolio of Investments (contd)
MS India Investment Fund, Inc.
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Shares |
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Value |
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Food Products (4.2%) |
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KS Oils Ltd. |
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4,394,323 |
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$ |
4,743 |
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McLeod Russel India Ltd. |
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795,000 |
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4,123 |
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Nestle India Ltd. |
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160,884 |
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12,110 |
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Shree Renuka Sugars Ltd. |
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3,474,325 |
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6,800 |
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27,776 |
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Independent Power Producers & Energy Traders (1.8%) |
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GMR Infrastructure Ltd. (a) |
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6,218,800 |
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7,861 |
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Jaiprakash Power Ventures Ltd. (a) |
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2,624,000 |
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3,720 |
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11,581 |
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Information Technology Services (9.4%) |
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Infosys Technologies Ltd. |
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544,621 |
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36,973 |
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Tata Consultancy Services Ltd. |
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862,761 |
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17,797 |
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Wipro Ltd. |
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738,513 |
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7,387 |
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62,157 |
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Machinery (11.1%) |
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AIA Engineering Ltd. |
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951,182 |
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8,467 |
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Ashok Leyland Ltd. |
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6,220,284 |
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9,980 |
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Cummins India Ltd. |
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435,000 |
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7,123 |
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Tata Motors Ltd. |
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1,645,378 |
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40,209 |
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Thermax Ltd. |
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404,738 |
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7,211 |
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72,990 |
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Media (7.2%) |
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Deccan Chronicle Holdings Ltd. |
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4,252,924 |
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12,304 |
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IBN18 Broadcast Ltd. (a) |
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300,542 |
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816 |
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Sun TV Network Ltd. |
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2,250,368 |
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25,992 |
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Television Eighteen India Ltd. (a) |
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4,170,972 |
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8,498 |
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47,610 |
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Metals & Mining (5.3%) |
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Hindalco Industries Ltd. |
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3,680,450 |
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16,139 |
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Hindustan Zinc Ltd. |
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361,360 |
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8,676 |
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Usha Martin Ltd. |
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5,223,700 |
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10,114 |
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34,929 |
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Multiline Retail (1.2%) |
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Future Mall Managment Ltd. (a)(c) |
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33,235 |
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179 |
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Pantaloon Retail India Ltd. |
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664,719 |
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7,751 |
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7,930 |
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Oil, Gas & Consumable Fuels (4.7%) |
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Reliance Industries Ltd. |
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1,408,010 |
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30,935 |
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|
2010 Third Quarter Report |
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|
September 30, 2010 (unaudited) |
Portfolio of Investments (contd)
MS India Investment Fund, Inc.
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Shares |
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Value |
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Pharmaceuticals (8.0%) |
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Aurobindo Pharma Ltd. |
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373,755 |
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$ |
8,634 |
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Dr. Reddys Laboratories Ltd. |
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722,907 |
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23,194 |
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Glenmark Pharmaceuticals Ltd. |
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2,499,500 |
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16,673 |
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Ranbaxy Laboratories Ltd. (a) |
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372,333 |
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4,608 |
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|
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53,109 |
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Real Estate Management & Development (0.9%) |
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Phoenix Mills Ltd. |
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1,112,831 |
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5,625 |
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Tobacco (3.9%) |
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ITC Ltd. |
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6,481,400 |
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25,718 |
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Total Common Stocks (Cost $483,633) |
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646,633 |
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Short-Term Investment (0.4%) |
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Investment Company (0.4%) |
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Morgan Stanley Institutional Liquidity Funds - Money Market Portfolio - Institutional Class (d) (Cost $2,653) |
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2,652,734 |
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2,653 |
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Total Investments (98.4%) (Cost $486,286) |
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649,286 |
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Other Assets in Excess of Liabilities (1.6%) |
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10,372 |
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Net Assets (100.0%) |
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$ |
659,658 |
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(a) Non-income producing security.
(b) At September 30, 2010, the Fund held approximately $0 of fair valued securities, representing 0.0% of net assets. These securities have been fair valued as determined in good faith under procedures established by and under the general supervision of the Funds Directors.
(c) Security has been deemed illiquid at September 30, 2010.
(d) The Fund invests in the Morgan Stanley Institutional Liquidity Funds - Money Market Portfolio - Institutional Class (the Liquidity Fund), an open-end management investment company managed by the Investment Adviser. Investment advisory fees paid by the Fund are reduced by an amount equal to the advisory and administrative service fees paid by the Liquidity Fund with respect to assets invested by the Fund in the Liquidity Fund.
|
2010 Third Quarter Report |
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|
|
September 30, 2010 (unaudited) |
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Portfolio of Investments |
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MS India Investment Fund, Inc. |
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Fair Value Measurement Information:
The following is a summary of the inputs used to value the Portfolios net assets as of September 30, 2010. (See Notes to the Portfolio of Investments for further information regarding fair value measurement.)
Investment Type |
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Level 1 |
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Level 2 |
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Level 3 |
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Total |
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Common Stocks |
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Airlines |
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$ |
8,313 |
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$ |
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$ |
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$ |
8,313 |
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Auto Components |
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34 |
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34 |
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Automobiles |
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16,568 |
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16,568 |
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Chemicals |
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14,358 |
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14,358 |
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Commercial Banks |
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117,095 |
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15,230 |
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132,325 |
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Construction & Engineering |
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33,966 |
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33,966 |
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Containers & Packaging |
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6,037 |
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6,037 |
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Diversified Financial Services |
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15,128 |
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12,134 |
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27,262 |
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Electric Utilities |
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20,125 |
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20,125 |
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Electronic Equipment, Instruments & Components |
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7,285 |
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7,285 |
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Food Products |
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27,776 |
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27,776 |
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Independent Power Producers & Energy Traders |
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11,581 |
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11,581 |
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Information Technology Services |
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62,157 |
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62,157 |
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Machinery |
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72,990 |
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72,990 |
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Media |
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47,610 |
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47,610 |
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Metals & Mining |
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34,929 |
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34,929 |
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Multiline Retail |
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7,930 |
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7,930 |
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Oil, Gas & Consumable Fuels |
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30,935 |
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30,935 |
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Pharmaceuticals |
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53,109 |
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53,109 |
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Real Estate Management & Development |
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5,625 |
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5,625 |
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Tobacco |
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25,718 |
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25,718 |
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Total Common Stocks |
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611,305 |
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35,328 |
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646,633 |
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Short-Term Investments |
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Investment Companies |
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2,653 |
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2,653 |
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Total |
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$ |
613,958 |
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$ |
35,328 |
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$ |
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$ |
649,286 |
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Transfers between investment levels may occur as the markets fluctuate and/or the availability of data used in an investments valuation changes. The Portfolio recognizes transfers between the levels as of the end of the period. As of September 30, 2010, securities with a total value of approximately $451,812,000 transferred from Level 2 to Level 1. At December 31, 2009, the fair market value of certain securities were adjusted due to developments which occurred between the time of the close of the foreign markets on which they trade and the close of business on the NYSE which resulted in their Level 2 classification.
Following is a reconciliation of investments in which significant unobservable inputs (Level 3) were used in determining fair value.
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Common Stocks (000) |
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Balance as of 12/31/09 |
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Accrued discounts/premiums |
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Realized gain (loss) |
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Change in unrealized appreciation (depreciation) |
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Net purchases (sales) |
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Transfers in for Level 3 |
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Transfers out of Level 3 |
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Balance as of 9/30/10 |
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$ |
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The amount of total gains (losses) for the period included in earnings attributable to the change in unrealized gains (losses) relating to assets and liabilities still held at Level 3 at 9/30/10. |
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$ |
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Includes a security which is valued at zero.
Notes to Portfolio of Investments (unaudited)
In accordance with FASB ASC 820 Fair Value Measurements and Disclosure (ASC 820) (formerly known as SFAS 157), fair value is defined as the price that the Fund would receive to sell an investment or pay to transfer a liability in a timely transaction with an independent buyer in the principal market, or in the absence of a principal market the most advantageous market for the investment or liability. ASC 820 establishes a three-tier hierarchy to distinguish between (1) inputs that reflect the assumptions market participants would use in valuing an asset or liability developed based on market data obtained from sources independent of the reporting entity (observable inputs) and (2) inputs that reflect the reporting entitys own assumptions about the assumptions market participants would use in valuing an asset or liability developed based on the best information available in the circumstances (unobservable inputs) and to establish classification of fair value measurements for disclosure purposes. Various inputs are used in determining the value of the Funds investments. The inputs are summarized in the three broad levels listed below.
· Level 1 quoted prices in active markets for identical securities
· 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 each Funds 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.
Security Valuation: Securities listed on a foreign exchange are valued at their closing price except as noted below. Unlisted securities and listed securities not traded on the valuation date for which market quotations are readily available are valued at the mean between the current bid and asked prices obtained from reputable brokers. Equity securities listed on a U.S. exchange are valued at the latest quoted sales price on the valuation date. Equity securities listed or traded on NASDAQ, for which market quotations are available, are valued at the NASDAQ Official Closing Price. Debt securities purchased with remaining maturities of 60 days or less are valued at amortized cost, unless the Board of Directors (the Directors) determine such valuation does not reflect the securities market value, in which case these securities will be valued at their fair value as determined by the Directors.
All other securities and investments for which market values are not readily available, including restricted securities, and those securities for which it is inappropriate to determine prices in accordance with the aforementioned procedures, are valued at fair value as determined in good faith under procedures adopted by the Directors, although the actual calculations may be done by others. Factors considered in making this determination may include, but are not limited to, information obtained by contacting the issuer, analysts, or the appropriate stock exchange (for exchange-traded securities), analysis of the issuers financial statements or other available documents and, if necessary, available information concerning other securities in similar circumstances.
Most foreign markets close before the New York Stock Exchange (NYSE). Occasionally, developments that could affect the closing prices of securities and other assets may occur between the times at which valuations of such securities are determined (that is, close of the foreign market on which the securities trade) and the close of business on the NYSE. If these developments are expected to materially affect the value of the securities, the valuations may be adjusted to reflect the estimated fair value as of the close of the NYSE, as determined in good faith under procedures established by the Directors.
Item 2. Controls and Procedures.
(a) The Funds principal executive officer and principal financial officer have concluded that the Funds disclosure controls and procedures are sufficient to ensure that information required to be disclosed by the Fund in this Form N-Q was recorded, processed, summarized and reported within the time periods specified in the Securities and Exchange Commissions rules and forms, based upon such officers evaluation of these controls and procedures as of a date within 90 days of the filing date of the report.
(b) There were no changes in the Funds internal control over financial reporting that occurred during the registrants fiscal quarter that has materially affected, or is reasonably likely to materially affect, the Funds internal control over financial reporting.
Item 3. Exhibits.
(a) A separate certification for each principal executive officer and principal financial officer of the registrant are attached hereto.
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.
Morgan Stanley India Investment Fund, Inc.
/s/ Sara Furber |
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Sara Furber |
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Principal Executive Officer |
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November 16, 2010 |
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Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed by the following persons on behalf of the registrant and in the capacities and on the dates indicated.
/s/ Sara Furber |
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Sara Furber |
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Principal Executive Officer |
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November 16, 2010 |
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/s/ Francis Smith |
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Francis Smith |
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Principal Financial Officer |
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November 16, 2010 |
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