Form N-Q ALPINE EQUITY TRUST

Quarterly Schedule of Portfolio Holdings of Registered Management Investment Company

What is Form N-Q?
  • Accession No.: 0000930413-18-001055 Act: 40 File No.: 811-05684 Film No.: 18709810
  • CIK: 0000842436
  • Submitted: 2018-03-23
  • Period of Report: 2018-01-31

N-Q HTML

c90684_nq.htm

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  811-05684

 

Alpine Equity Trust

(Exact name of registrant as specified in charter)

 

2500 Westchester Avenue, Suite 215

Purchase, NY 10577

(Address of principal executive offices) (Zip code)

 

Samuel A. Lieber

Alpine Woods Capital Investors, LLC

2500 Westchester Avenue, Suite 215

Purchase, NY 10577

(Name and address of agent for service)

 

Copy to:

Rose DiMartino

Attorney at Law

Willkie Farr & Gallagher

787 7th Avenue, 40th FL

New York, NY  10019

 

1-888-729-6633

Registrant’s telephone number, including area code

 

Date of fiscal year end: October 31, 2018

 

Date of reporting period:  January 31, 2018

 

Item 1. Schedule of Investments.

 

Alpine International Real Estate Equity Fund

 

Schedule of Portfolio Investments

January 31, 2018 (Unaudited)

 

Shares   Security
Description
    Value  
   
Common Stocks-100.9%  
   
Asia-37.5%  
   
China-3.5%  
  1,104,851   China State Construction International Holdings, Ltd.   $ 1,598,808  
  260,000   China Vanke Co., Ltd.-Class H     1,272,970  
  4,000,000   Joy City Property, Ltd.     690,303  
  300,000   Longfor Properties Co., Ltd.     979,847  
            4,541,928  
India-7.6%  
  1,698,765   DB Realty, Ltd. (a)     1,618,539  
  374,877   Prestige Estates Projects, Ltd.     1,891,662  
  178,276   Sobha, Ltd.     1,597,662  
  2,000,000   South Asian Real Estate PLC (a)(b)(c)(d)     1,391,452  
  319,557   The Phoenix Mills, Ltd.     3,260,696  
            9,760,011  
Indonesia-1.6%  
  15,000,000   PT Bekasi Fajar Industrial Estate TBK     336,109  
  2,500,000   PT Bumi Serpong Damai TBK     339,844  
  3,500,000   PT Ciputra Development TBK     355,529  
  47,000,000   PT Puradelta Lestari TBK     702,095  
  4,000,000   PT Summarecon Agung TBK     334,616  
            2,068,193  
Japan-21.3%  
  75,000   Hoosiers Holdings     533,800  
  126,245   Hulic Co., Ltd.     1,598,155  
  1,500   Ichigo Hotel REIT Investment Corp.     1,709,261  
  415,541   Ichigo, Inc.     1,716,671  
  2,738   Invincible Investment Corp.     1,269,056  
  500   Japan Hotel REIT Investment Corp.     370,523  
  200,000   Kenedix, Inc.     1,271,412  
  129,100   Mitsui Fudosan Co., Ltd.     3,379,163  
  90,000   Open House Co., Ltd.     5,284,419  
  42,728   Resorttrust, Inc.     1,015,656  
  85,000   Seibu Holdings, Inc.     1,697,353  
  100,000   Shinoken Group Co., Ltd.     2,404,507  
  96,000   Sumitomo Realty & Development Co., Ltd.     3,681,011  
  200,000   Tokyu Fudosan Holdings Corp.     1,575,524  
            27,506,511  
Philippines-2.3%  
  1,507,077   Ayala Land, Inc.     1,299,964  
  10,500,000   Megaworld Corp.     1,013,158  
  1,500,000   Robinsons Land Corp.     611,111  
  1   SM Prime Holdings, Inc.     1  
            2,924,234  
Singapore-0.3%  
  700,000   Banyan Tree Holdings, Ltd. (a)     330,843  
United Arab Emirates-0.9%  
  1,250,000   Emaar Malls PJSC     786,153  
 

Alpine International Real Estate Equity Fund

 

Schedule of Portfolio Investments-Continued

January 31, 2018 (Unaudited)

 

  250,000   Emaar Properties PJSC     447,869  
            1,234,022  
      Total Asia (Cost $51,269,667)     48,365,742  
Australia-0.6%  
   
Australia-0.6%  
  100,000   Westfield Corp.     736,501  
      Total Australia (Cost $737,165)     736,501  
Europe-42.5%  
   
Belgium-1.3%  
  23,000   VGP NV (a)     1,713,339  
France-6.6%  
  53,778   Accor SA     3,061,316  
  10,312   Kaufman & Broad SA     538,232  
  47,526   Klepierre SA     2,170,827  
  12,000   Nexity SA (a)     722,582  
  8,000   Unibail-Rodamco SE     2,052,033  
            8,544,990  
Germany-8.3%  
  41,500   ADO Properties SA (e)     2,236,155  
  312,078   Aroundtown SA     2,512,680  
  14,000   Corestate Capital Holding SA     863,870  
  19,360   Deutsche Konsum REIT-AG (a)     248,777  
  161,000   Dream Global Real Estate Investment Trust     1,627,016  
  75,000   NorthStar Realty Europe Corp.     894,750  
  56,065   PATRIZIA Immobilien AG (a)     1,403,287  
  31,753   TLG Immobilien AG     893,324  
            10,679,859  
Ireland-8.8%  
  757,791   Cairn Homes PLC (a)     1,787,587  
  716,668   Dalata Hotel Group PLC (a)     5,205,207  
  1,100,000   Glenveagh Properties PLC (a)(e)     1,657,965  
  518,484   Green REIT PLC     1,024,808  
  866,666   Hibernia REIT PLC     1,648,446  
            11,324,013  
Italy-0.5%  
  55,737   COIMA RES SpA (e)     610,346  
Netherlands-2.6%  
  28,333   InterXion Holding NV (a)     1,777,896  
  19,750   NSI NV     872,933  
  15,000   Wereldhave NV     745,116  
            3,395,945  
Norway-0.4%  
  23,253   Olav Thon Eiendomsselskap ASA     469,349  
Poland-1.0%  
  100,000   Atrium European Real Estate, Ltd. (a)     523,934  
  493,970   Echo Investment SA     745,665  
            1,269,599  
 

Alpine International Real Estate Equity Fund

 

Schedule of Portfolio Investments-Continued

January 31, 2018 (Unaudited)

 

Spain-8.7%  
  58,646   Aedas Homes SAU (a)(e)     2,286,295  
  127,917   Hispania Activos Inmobiliarios Socimi SA     2,676,038  
  161,769   Lar Espana Real Estate Socimi SA     1,829,691  
  30,000   Melia Hotels International SA     424,610  
  100,000   Merlin Properties Socimi SA     1,438,956  
  65,625   Neinor Homes SA (a)(e)     1,507,319  
  150,000   NH Hotel Group SA     1,141,605  
            11,304,514  
Sweden-0.6%  
  100,000   Oscar Properties Holding AB     438,458  
  19,000   Pandox AB     356,857  
            795,315  
United Kingdom-3.7%  
  300,000   Countryside Properties PLC (e)     1,347,721  
  225,534   IWG PLC     850,516  
  117,468   LondonMetric Property PLC     298,882  
  145,391   Purplebricks Group PLC (a)     1,011,110  
  220,000   St Modwen Properties PLC     1,286,952  
            4,795,181  
      Total Europe (Cost $41,352,101)     54,902,450  
   
North & South America-20.3%  
   
Brazil-8.1%  
  300,000   BR Malls Participacoes SA     1,209,981  
  100,000   Construtora Tenda SA (a)     701,507  
  220,535   Cyrela Commercial Properties SA Empreendimentos e Participacoes     712,966  
  836,829   Direcional Engenharia SA (a)     1,720,411  
  912,132   General Shopping Brasil SA (a)     1,646,189  
  575,000   MRV Engenharia e Participacoes SA     2,734,228  
  136,231   Sao Carlos Empreendimentos e Participacoes SA     1,740,730  
            10,466,012  
Canada-0.2%  
  30,000   Hudson’s Bay Co.     260,244  
Mexico-2.2%  
  500,024   Corp. Inmobiliaria Vesta SAB de CV     689,382  
  1,000,000   Grupo GICSA SA de CV (a)     569,533  
  1,257,643   Hoteles City Express SAB de CV (a)     1,610,253  
            2,869,168  
United States-9.8%  
  48,517   Century Communities, Inc. (a)     1,533,137  
  6,000   Equinix, Inc.     2,731,140  
  75,000   Five Point Holdings LLC-Class A (a)     1,035,000  
  25,000   GGP, Inc.     575,750  
  5,000   LGI Homes, Inc. (a)     338,400  
  35,000   PulteGroup, Inc.     1,114,050  
  20,000   QTS Realty Trust, Inc.-Class A     996,000  
  6,000   Simon Property Group, Inc.     980,220  
  30,000   Taylor Morrison Home Corp.-Class A (a)     762,900  
  115,932   TerraForm Power, Inc.-Class A     1,263,659  
 

Alpine International Real Estate Equity Fund

 

Schedule of Portfolio Investments-Continued

January 31, 2018 (Unaudited)

 

 46,700  William Lyon Homes-Class A (a)   1,267,905 
        12,598,161 
    Total North & South America (Cost $32,224,528)   26,193,585 
    Total Common Stocks (Cost $125,583,461)   130,198,278 
Rights-0.2%     
      
Asia-0.2%     
      
Japan-0.2%     
 75,000  Hoosiers Holdings Expiration: March 15, 2018    190,299 
Philippines-0.0% (f)     
 403,041  Robinsons Land Corp. Expiration: February 08, 2018    21,213 
    Total Asia (Cost $206,401)   211,512 
    Total Rights (Cost $206,401)   211,512 
Money Market Funds-0.8%     
 1,076,366  Morgan Stanley Institutional Liquidity Funds - Prime Portfolio, 1.51%   1,076,366 
    Total Money Market Funds (Cost $1,076,881)   1,076,366 
Total Investments (Cost $126,866,743) (g) - 101.9%   131,486,156 
Liabilities in Excess of Other Assets-(1.9)%   (2,432,070)
TOTAL NET ASSETS 100.0%  $129,054,086 
          
 
Percentages are stated as a percent of net assets.
(a) Non-income producing security.
(b) Illiquid security.
(c) Security fair valued in accordance with procedures approved by the Board of Trustees and the value was determined using significant unobservable inputs. These securities comprised 1.1% of the Fund’s net assets.
(d) Private placement.
(e) Security is exempt from registration under Rule 144A of the Securities Act of 1933. These securities may be resold in transactions exempt from registration, normally to qualified institutional buyers. These securities have been determined to be liquid under guidelines established by the Board of Trustees. Liquid securities restricted under Rule 144A comprised 7.5% of the Fund’s net assets.
(f) Amount is less than 0.05%.
(g) See Note 2B for the cost of investments for federal tax purposes.
AB-Aktiebolag is the Swedish equivalent of a corporation.
AG-Aktiengesellschaft is a German term that refers to a corporation that is limited by shares, i.e., owned by shareholders.
ASA-Allmennaksjeselskap is the Norwegian term for a public limited company.
NV-Naamloze Vennootschap is the Dutch term for a public limited liability corporation.
PJSC-Public Joint Stock Company
PLC-Public Limited Company
REIT-Real Estate Investment Trust
SA-Generally designates corporations in various countries, mostly those employing the civil law.
SA de CV-Sociedad Anonima de Capital Variable is the Spanish equivalent to Variable Capital Company.
SAB de CV-Sociedad Anonima Bursátil de Capital Variable is the Spanish equivalent to Variable Capital Company.
SAU-Sociedad Anonima Unipersonal
SE-SE Regulation.  A European Company which can operate on a Europe-wide basis and be governed by Community law directly applicable in all Member States.
SpA-Societa’ Per Azioni is an Italian shared company.
 

Alpine International Real Estate Equity Fund

 

Schedule of Portfolio Investments-Continued

January 31, 2018 (Unaudited)

 

Forward Currency Contracts
                    
The following forward currency contracts were held as of January 31, 2018:
                    
Description   Counterparty  Settlement
Date
  Currency
Sold
   Settlement Value
in USD
   Current
Value
   Unrealized
Depreciation
 
Contracts Sold:
Euro  State Street Bank and Trust Company  06/06/18   12,000,000 EUR   $14,359,536   $15,025,538   $(666,002)
Japanese Yen  State Street Bank and Trust Company  06/06/18   750,000,000 JPY    6,732,532    6,922,679    (190,147)
                             $(856,149)
 

Alpine Realty Income & Growth Fund

 

Schedule of Portfolio Investments

January 31, 2018 (Unaudited)

 

Shares   Security
Description
  Value 
 
Real Estate Investment Trusts-106.4%
           
Apartments-16.5%     
 15,000   American Campus Communities, Inc.  $576,900 
 25,625   AvalonBay Communities, Inc. (a)   4,366,500 
 14,500   Camden Property Trust   1,255,120 
 68,360   Equity Residential (a)   4,211,659 
 23,165   Essex Property Trust, Inc. (a)   5,396,982 
 36,900   UDR, Inc.   1,347,957 
         17,155,118 
 
Diversified-3.3%
 35,596   Alexander & Baldwin, Inc.   944,006 
 26,114   American Assets Trust, Inc. (a)   920,780 
 35,000   Forest City Realty Trust, Inc.-Class A   821,450 
 23,058   JBG SMITH Properties   778,207 
         3,464,443 
 
Health Care-6.0%
 16,887   HCP, Inc.   406,639 
 25,413   Omega Healthcare Investors, Inc.   687,167 
 27,344   Sabra Health Care REIT, Inc.   494,926 
 55,712   Ventas, Inc. (a)   3,118,201 
 24,803   Welltower, Inc.   1,487,436 
         6,194,369 
 
Lodging-3.6%
 20,200   Ashford Hospitality Prime, Inc.   182,204 
 29,696   Chatham Lodging Trust   665,190 
 72,100   Host Hotels & Resorts, Inc.   1,496,796 
 29,214   Park Hotels & Resorts, Inc.   844,577 
 15,300   Pebblebrook Hotel Trust   596,700 
         3,785,467 
 
Manufactured Homes-2.4%
 28,900   Equity LifeStyle Properties, Inc.   2,494,648 
 
Mortgage & Finance-1.0%
 50,000   Starwood Property Trust, Inc.   1,019,500 
 
Net Lease-0.7%
 9,012   EPR Properties   532,249 
 30,000   VEREIT, Inc.   216,000 
         748,249 
 
Office-Industrial Buildings-47.8%
 47,028   Alexandria Real Estate Equities, Inc. (a)   6,099,532 
 49,611   Boston Properties, Inc.   6,137,377 
 32,769   CoreSite Realty Corp.   3,549,538 
 37,087   Cousins Properties, Inc.   333,783 
 21,169   CyrusOne, Inc.   1,221,240 
 51,774   Digital Realty Trust, Inc.   5,796,099 
 57,509   Douglas Emmett, Inc.   2,223,873 
 26,196   Duke Realty Corp.   691,836 
 45,455   Empire State Realty Trust, Inc.-Class A   888,645 
 6,000   Equinix, Inc.   2,731,140 
 15,714   Hudson Pacific Properties, Inc.   502,377 
 38,773   Kilroy Realty Corp. (a)   2,765,290 
 

Alpine Realty Income & Growth Fund

 

Schedule of Portfolio Investments-Continued

January 31, 2018 (Unaudited)

 

 18,708   Liberty Property Trust   774,698 
 15,000   Mack-Cali Realty Corp.   301,050 
 35,608   Paramount Group, Inc.   535,188 
 89,400   Prologis, Inc.   5,820,834 
 35,000   SL Green Realty Corp. (a)   3,518,200 
 32,537   STAG Industrial, Inc.   823,837 
 51,058   Terreno Realty Corp.   1,817,665 
 46,117   Vornado Realty Trust (a)   3,305,667 
         49,837,869 
 
REIT - Infrastructure-2.5%
 17,500   American Tower Corp.   2,584,750 
 
Retail Centers-16.5%
 61,691   CBL & Associates Properties, Inc.   343,002 
 12,100   Federal Realty Investment Trust (a)   1,461,680 
 108,000   GGP, Inc.   2,487,240 
 50,000   Kimco Realty Corp.   795,500 
 10,000   Regency Centers Corp.   629,100 
 48,295   Simon Property Group, Inc. (a)   7,889,954 
 15,297   Taubman Centers, Inc. (a)   943,060 
 30,928   The Macerich Co. (a)   1,997,021 
 23,058   Urban Edge Properties   539,096 
 5,130   Weingarten Realty Investors   151,592 
         17,237,245 
 
Storage-6.1%
 17,000   Extra Space Storage, Inc.   1,419,160 
 12,000   National Storage Affiliates Trust   304,440 
 23,865   Public Storage (a)   4,671,812 
         6,395,412 
     Total Real Estate Investment Trusts (Cost $53,781,507)   110,917,070 
 
Common Stocks-1.0%
 
Lodging-1.0%
 7,200   Marriott International, Inc.-Class A   1,060,848 
     Total Common Stocks (Cost $382,278)   1,060,848 
 
Preferred Stocks-0.7%
 
Retail Centers-0.7%
 37,843   CBL & Associates Properties, Inc.-Series D, 7.375%   760,266 
     Total Preferred Stocks (Cost $659,049)   760,266 
Total Investments (Cost $54,822,834) (b) - 108.1%   112,738,184 
Liabilities in Excess of Other Assets-(8.1)%   (8,474,425)
TOTAL NET ASSETS 100.0%  $104,263,759 

 

Percentages are stated as a percent of net assets.

(a) All or a portion of the security has been designated as collateral for the line of credit.

(b) See Note 2B for the cost of investments for federal tax purposes.

REIT-Real Estate Investment Trust

 

Alpine Global Infrastructure Fund

 

Schedule of Portfolio Investments

January 31, 2018 (Unaudited)

 

Shares   Security
Description
  Value 
 
Common Stocks-97.3%
 
Asia-15.8%
 
China-8.5%
 2,586,000   Beijing Enterprises Water Group, Ltd. (a)  $1,861,157 
 765,000   China Everbright International, Ltd.   1,169,604 
 495,000   China Merchants Port Holdings, Co., Ltd.   1,309,850 
 1,313,500   China Railway Construction Corp., Ltd.-Class H   1,596,823 
 80,000   China Unicom Hong Kong, Ltd.-ADR (a)   1,203,200 
 1,315,000   COSCO SHIPPING Ports, Ltd.   1,376,752 
 1,650,200   CRRC Corp., Ltd.-Class H   1,634,874 
 1,500,100   Zhejiang Expressway Co., Ltd.-Class H   1,775,732 
         11,927,992 
 
Indonesia-3.6%
 4,100,000   PT Jasa Marga Persero TBK   1,745,528 
 2,500,000   PT Sarana Menara Nusantara TBK   692,758 
 4,136,700   PT Tower Bersama Infrastructure TBK   1,900,191 
 3,525,000   PT XL Axiata TBK (a)   787,224 
         5,125,701 
 
Japan-2.1%
 30,000   East Japan Railway Co.   2,980,214 
 
Philippines-1.6%
 1,000,000   International Container Terminal Services, Inc.   2,212,476 
     Total Asia (Cost $21,614,783)   22,246,383 
 
Europe-28.0%
 
Finland-1.0%
 70,200   DNA OYJ   1,316,939 
 
France-7.6%
 11,100   Aeroports de Paris   2,305,595 
 17,300   Bouygues SA   961,606 
 100,000   Suez   1,491,101 
 137,700   Veolia Environnement SA   3,468,807 
 22,900   Vinci SA   2,473,540 
         10,700,649 
 
Germany-1.0%
 12,300   Fraport AG Frankfurt Airport Services Worldwide   1,454,416 
 
Italy-3.7%
 73,700   Atlantia SpA   2,441,279 
 420,400   Enel SpA   2,667,152 
         5,108,431 
 
Netherlands-2.1%
 421,500   Koninklijke KPN NV   1,475,743 
 33,000   Koninklijke Vopak NV   1,490,940 
         2,966,683 
 
Portugal-1.9%
 390,200   NOS SGPS SA   2,657,223 
 

Alpine Global Infrastructure Fund

 

Schedule of Portfolio Investments-Continued

January 31, 2018 (Unaudited)

 

Spain-6.0%
 65,000   Abertis Infraestructuras SA   1,575,278 
 84,800   Atlantica Yield PLC   1,787,584 
 107,100   Cellnex Telecom SAU (b)   2,892,097 
 250,000   EDP Renovaveis SA   2,188,232 
         8,443,191 
United Kingdom-4.7%
 388,046   BT Group PLC   1,407,445 
 162,533   Ferrovial SA   3,728,122 
 220,000   Royal Mail PLC   1,466,562 
         6,602,129 
     Total Europe (Cost $32,804,557)   39,249,661 
 
North & South America-53.5%
 
Argentina-0.8%
 50,000   Loma Negra Cia Industrial Argentina SA-ADR (a)   1,188,000 
Brazil-5.3%       
 495,000   CCR SA   2,434,605 
 1,075,000   Cosan Logistica SA (a)   3,380,885 
 162,000   Energisa SA   1,550,847 
         7,366,337 
 
Canada-4.6%
 18,100   Canadian Pacific Railway, Ltd.   3,349,224 
 82,900   Enbridge, Inc.   3,034,949 
         6,384,173 
 
Mexico-2.7%
 225,000   Infraestructura Energetica Nova SAB de CV   1,172,646 
 255,600   Promotora y Operadora de Infraestructura SAB de CV   2,616,873 
         3,789,519 
 
United States-40.1%
 18,000   American Electric Power Co., Inc.   1,238,040 
 19,000   American Tower Corp.   2,806,300 
 20,000   AT&T, Inc.   749,000 
 11,500   Black Hills Corp.   638,825 
 37,200   CMS Energy Corp.   1,664,700 
 53,500   Comcast Corp.-Class A   2,275,355 
 60,000   CoreCivic, Inc.   1,392,600 
 27,400   Crown Castle International Corp.   3,089,898 
 31,200   DISH Network Corp.-Class A (a)   1,463,280 
 16,900   DTE Energy Co.   1,785,316 
 12,100   Dycom Industries, Inc. (a)   1,412,191 
 56,000   FirstEnergy Corp.   1,842,400 
 34,100   Genesee & Wyoming, Inc.-Class A (a)   2,722,885 
 50,600   Great Plains Energy, Inc.   1,574,672 
 12,400   Kansas City Southern   1,402,812 
 126,000   Kinder Morgan, Inc.   2,265,480 
 6,000   Martin Marietta Materials, Inc.   1,369,020 
 28,000   MasTec, Inc. (a)   1,495,200 
 19,300   NextEra Energy, Inc.   3,057,506 
 19,900   Norfolk Southern Corp.   3,002,512 
 128,400   NRG Yield, Inc.-Class C   2,426,760 
 47,300   Pattern Energy Group, Inc.-Class A   975,326 
 46,100   SemGroup Corp.-Class A   1,320,765 
 

Alpine Global Infrastructure Fund

 

Schedule of Portfolio Investments-Continued

January 31, 2018 (Unaudited)

 

 32,700   T-Mobile U.S., Inc. (a)   2,128,770 
 64,300   The Geo Group, Inc.   1,449,965 
 91,400   The Williams Cos., Inc.   2,869,046 
 260,300   TravelCenters of America LLC (a)   1,145,320 
 15,400   Union Pacific Corp.   2,055,900 
 79,700   Vistra Energy Corp. (a)   1,554,150 
 13,500   Vulcan Materials Co.   1,827,900 
 17,400   Waste Connections, Inc.   1,249,668 
         56,251,562 
     Total North & South America (Cost $70,274,611)   74,979,591 
     Total Common Stocks (Cost $124,693,951)   136,475,635 
 
Exchange-Traded Funds-1.2%
 
North & South America-1.2%
 
United States-1.2%
 145,000   Alerian MLP ETF   1,653,000 
     Total Exchange-Traded Funds (Cost $1,528,313)   1,653,000 
 
Money Market Funds-2.0%
 2,776,064   Morgan Stanley Institutional Liquidity Funds - Prime Portfolio, 1.51%   2,776,064 
     Total Money Market Funds (Cost $2,777,399)   2,776,064 
Total Investments (Cost $128,999,663) (c) - 100.5%   140,904,699 
Liabilities in Excess of Other Assets-(0.5)%   (666,111)
TOTAL NET ASSETS 100.0%  $140,238,588 

 

 

Percentages are stated as a percent of net assets.

(a) Non-income producing security.

(b) Security is exempt from registration under Rule 144A of the Securities Act of 1933. These securities may be resold in transactions exempt from registration, normally to qualified institutional buyers. These securities have been determined to be liquid under guidelines established by the Board of Trustees. Liquid securities restricted under Rule 144A comprised 2.1% of the Fund’s net assets.

(c) See Note 2B for the cost of investments for federal tax purposes.

ADR-American Depositary Receipt

AG-Aktiengesellschaft is a German term that refers to a corporation that is limited by shares, i.e., owned by shareholders.

ETF-Exchange-Traded Fund

NV-Naamloze Vennootschap is the Dutch term for a public limited liability corporation.

PLC-Public Limited Company

SA-Generally designates corporations in various countries, mostly those employing the civil law.

SAB de CV-Sociedad Anonima Bursátil de Capital Variable is the Spanish equivalent to Variable Capital Company.

SAU-Sociedad Anonima Unipersonal

SpA-Societa’ Per Azioni is an Italian shared company.

TBK-Indonesian city of Tanjung Balai Karimun

 

Alpine Global Infrastructure Fund

 

Schedule of Portfolio Investments-Continued

January 31, 2018 (Unaudited)

 

Forward Currency Contracts

 

The following forward currency contracts were held as of January 31, 2018:

 

Description  Counterparty  Settlement
Date
  Currency
Bought/Sold
  Settlement
Value in USD
  Current
Value
  Unrealized
Appreciation/
(Depreciation)
Contracts Purchased:                         
Hong Kong Dollar  State Street Bank and Trust Company  11/06/18   3,000,000 HKD  $386,756   $385,641   $(1,115)
Hong Kong Dollar  State Street Bank and Trust Company  11/06/18   3,000,000 HKD   386,302    385,641    (661)
                           $(1,776)
Contracts Sold:                             
Euro  State Street Bank and Trust Company  06/06/18   4,000,000 EUR  $4,794,660   $5,008,513   $(213,853)
Hong Kong Dollar  State Street Bank and Trust Company  11/06/18   90,000,000 HKD   11,601,601    11,569,226    32,375 
                           $(181,478)
 

Alpine Equity Trust

Notes to Schedule of Portfolio Investments

January 31, 2018 (Unaudited)

 

1. Organization:

 

Alpine Equity Trust (the “Equity Trust”) was organized in 1988 as a Massachusetts business trust, and is registered under the Investment Company Act of 1940, as amended (the “1940 Act”), as an open-end management investment company. The Alpine International Real Estate Equity Fund, Alpine Realty Income & Growth Fund and Alpine Global Infrastructure Fund are three separate series of the Equity Trust (individually referred to as a “Fund” and collectively, “the Funds”). The Alpine International Real Estate Equity Fund and Alpine Global Infrastructure Fund are diversified funds. The Alpine Realty Income & Growth Fund is a non-diversified fund. Alpine International Real Estate Equity Fund seeks long-term capital growth. Current income is a secondary objective. Alpine Realty Income & Growth Fund seeks a high level of current income. Capital appreciation is a secondary objective. Alpine Global Infrastructure Fund seeks capital appreciation. Current income is a secondary objective. Alpine Woods Capital Investors, LLC (the “Adviser”) is a Delaware limited liability company and serves as the investment manager to the Funds.

 

The Funds are each an investment company and accordingly follow the investment company accounting and reporting guidance of the Financial Accounting Standards Board (“FASB”) Accounting Standards Codification Topic (“ASC”) 946 Financial Services – Investment Companies.

 

2. Significant Accounting Policies:

 

The following is a summary of significant accounting policies consistently followed by the Funds in the preparation of their financial statements. The policies are in conformity with accounting principles generally accepted in the United States of America (“GAAP”), which require management to make estimates and assumptions that affect amounts reported herein. Actual results could differ from those estimates. Changes in the economic environment, financial markets and any other parameters used in determining these estimates could cause actual results to differ.

 

A. Valuation of Securities:

 

The net asset value (“NAV”) of shares of the Funds are calculated by dividing the value of the Funds’ net assets by the number of outstanding shares. NAV is determined each day the New York Stock Exchange (“NYSE”) is open as of the close of regular trading (normally, 4:00 p.m., Eastern Time). In computing NAV, portfolio securities of the Funds are valued at their current fair values determined on the basis of market quotations or if market quotations are not readily available or determined to be unreliable, through procedures and/or guidelines established by the Board. In computing the Funds’ NAV, equity securities that are traded on a securities exchange in the United States, except for those listed on NASDAQ Global Market, NASDAQ Global Select Market and NASDAQ Capital Market exchanges (collectively, “NASDAQ”) and option securities are valued at the last reported sale price as of the time of valuation. Securities traded on NASDAQ will be valued at the NASDAQ Official Closing Prices (“NOCP”). If, on a particular day, an exchange traded or NASDAQ security does not trade, then the mean between the most recent quoted bid and asked prices will be used. For equity investments traded on more than one exchange, the last reported sale price on the exchange where the stock is primarily traded is used. Equity-linked structured notes are valued by referencing the last reported sale or settlement price of the underlying security on the day of valuation. Foreign exchange adjustments are applied to the last reported price to convert the underlying security’s trading currency to the equity-linked structured note’s settlement currency. Each option security traded on a securities exchange in the United States is valued at the last current reported sales price as of the time of valuation if the last current reported sales price falls within the consolidated bid/ask quote. If the last current reported sale price does not fall within the consolidated bid/ask quote, the security is valued at the mid-point of the consolidated bid/ask quote for the option security. Forward currency contracts are valued based on third-party vendor quotations. Each security traded in the over-the-counter market and quoted on the NASDAQ National Market System is valued at the NOCP, as determined by NASDAQ, or lacking an NOCP, the last current reported sale price as of the time of valuation by NASDAQ, or lacking any current reported sale on NASDAQ at the time of valuation, at the mean between the most recent bid and asked quotations. Each over-the-counter option that is not traded through the Options Clearing Corporation is valued by the counterparty of the option, or if the counterparty’s price is not readily available, then by using the Black-Scholes method. Debt and short-term securities are valued based on an evaluated bid price as furnished by pricing services approved by the Board, which may be based on market transactions for comparable securities and various relationships between securities that are generally recognized by institutional traders, a computerized matrix system, or appraisals derived from information concerning the securities or similar securities received from recognized dealers in those securities. Each other security traded over-the-counter is valued at the mean between the most recent bid and asked quotations.

 

Securities that are principally traded in a foreign market are valued at the last current sale price at the time of valuation or lacking any current or reported sale, at the time of valuation, at the mean between the most recent bid and asked quotations as of the close of the appropriate exchange or other designated time. Trading in securities on European and Far Eastern securities exchanges and over-the-counter markets is normally completed at various times before the close of business on each day on which the NYSE is

 

open. Trading of these securities may not take place on every NYSE business day. In addition, trading may take place in various foreign markets on Saturdays or on other days when the NYSE is not open and on which the Funds’ NAVs are not calculated.

 

When market quotations are not readily available or when the valuation methods mentioned above are not reflective of a fair value of the security, the security is valued at fair value following procedures and/or guidelines approved by the Board. The Funds may also use fair value pricing, if the value of a security it holds is, pursuant to the Board guidelines, materially affected by events occurring before the Funds’ NAVs are calculated but after the close of the primary market or market transactions for comparable securities and various relationships between securities that are generally recognized by institutional traders, a computerized matrix system, or appraisals derived from information concerning the securities or similar securities received from recognized dealers in those securities. The Board has approved the use of a third-party pricing vendor’s proprietary fair value pricing model to assist in determining current valuation for foreign equities and over-the-counter derivatives traded in markets that close prior to the NYSE. When fair value pricing is employed, the value of the portfolio security used to calculate the Funds’ NAVs may differ from quoted or official closing prices. The Fund may also fair value a security if the Fund or Adviser believes that the market price is stale. Other types of securities that the Funds may hold for which fair value pricing might be required include illiquid securities including restricted securities and private placements for which there is no public market.

 

For securities valued by the Funds, valuation techniques are used to measure fair value that are consistent with the market approach and/or income approach, depending on the type of security and the particular circumstance. The market approach uses prices and other relevant information generated by market transactions involving comparable securities. The income approach uses valuation techniques to discount estimated future cash flows to present value.

 

The Board of Trustees adopted procedures which utilize fair value procedures when any assets for which reliable market quotations are not readily available or for which the Funds’ pricing service does not provide a valuation or provides a valuation that in the judgment of the Adviser does not represent fair value. The Board of Trustees has established a Valuation Committee which is responsible for: (1) monitoring the valuation of Fund securities and other investments; and (2) as required, when the Board of Trustees is not in session, reviewing and approving the fair value of illiquid and other holdings after consideration of all relevant factors, which determinations are reported to the Board of Trustees.

 

Fair Value Measurement:

 

The Funds have adopted FASB ASC 820, “Fair Value Measurement” (“ASC 820”). ASC 820 establishes a single definition of fair value, creates a three-tier hierarchy as a framework for measuring fair value based on inputs used to value the Funds’ investments, and requires additional disclosure about fair value. The hierarchy of inputs is summarized below.

 

  Level 1 — Unadjusted quoted prices in active markets for identical instruments.  
       
  Level 2 — Other significant observable inputs (including quoted prices for similar investments, interest rates, prepayment speeds, credit risk, yield curves, default rates, etc.).  
       
  Level 3 — Significant unobservable inputs (including the 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.

 

The Funds use valuation techniques to measure fair value that are consistent with the market approach and/or income approach, depending on the type of security and the particular circumstance. The market approach uses prices and other relevant information generated by market transactions involving identical or comparable securities. The income approach uses valuation techniques to discount estimated future cash flows to present value.

 

The following is a summary of the inputs used to value the Funds’ assets and liabilities carried at fair value as of January 31, 2018:

 

   Valuation Inputs     
International Real Estate Equity Fund *  Level 1   Level 2   Level 3   Total Value 
Common Stocks                    
Asia  $46,974,290   $   $1,391,452   $48,365,742 
Australia   736,501            736,501 
Europe   54,902,450            54,902,450 
North & South America   26,193,585            26,193,585 
Rights       211,512        211,512 
Money Market Funds   1,076,366            1,076,366 
Total  $129,883,192   $211,512   $1,391,452   $131,486,156 
 
   Valuation Inputs     
Other Financial Instruments  Level 1   Level 2   Level 3   Total Value 
Liabilities                
Forward Currency Contracts  $   $(856,149)  $   $(856,149)
Total  $   $(856,149)  $   $(856,149)

 

   Valuation Inputs     
Realty Income & Growth Fund *  Level 1   Level 2   Level 3   Total Value 
Real Estate Investment Trusts  $110,917,070   $   $   $110,917,070 
Common Stocks   1,060,848            1,060,848 
Preferred Stocks   760,266            760,266 
Total  $112,738,184   $   $   $112,738,184 

 

   Valuation Inputs     
Global Infrastructure Fund *  Level 1   Level 2   Level 3   Total Value 
Common Stocks  $136,475,635   $   $   $136,475,635 
Exchange-Traded Funds   1,653,000            1,653,000 
Money Market Funds   2,776,064            2,776,064 
Total  $140,904,699   $   $   $140,904,699 

 

   Valuation Inputs     
Other Financial Instruments  Level 1   Level 2   Level 3   Total Value 
Assets                    
Forward Currency Contracts  $   $32,375   $   $32,375 
Liabilities                    
Forward Currency Contracts       (215,629)       (215,629)
Total  $   $(183,254)  $   $(183,254)

 

* For detailed country and sector descriptions, see accompanying Schedule of Portfolio Investments.

 

For the period ended January 31, 2018, there were no transfers between Level 1, Level 2 and Level 3. The Funds recognize transfers as of the beginning of the period.

 

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

 

   International Real
Estate Equity
Fund
 
Balance as of October 31, 2017  $1,301,587 
Realized gain (loss)    
Change in net unrealized appreciation   89,865 
Purchases    
Sales    
Transfers in to Level 3    
Transfers out of Level 3    
Balance as of January 31, 2018  $1,391,452 
Change in net unrealized appreciation/(depreciation) on Level 3 holdings held at period end  $89,865 
 

The following table shows the valuation techniques and significant amounts of unobservable inputs used in the fair value measurement of the Fund’s Level 3 investments, as of January 31, 2018:

 

International Real Estate Equity Fund

 

Asset  Fair Value
at 1/31/18
   Significant
Valuation
Technique
  Significant
Unobservable
Input
  Range of
Values
   Weighted
Average
   Relationship
Between Fair
Value and
Input: If
Input Value
Increases
Then:
                      
Common Stock  $1,391,452*  Market
Approach
  Liquidity Discount   20%   20%  Fair Value would Decrease
                         
           Total Enterprise Value / Revenue   1.55x to 2.07x    1.81x  Fair Value would Increase
                         
           Price/Book   0.75x to 1.18x    0.97x  Fair Value would Increase
                         
        Income
Approach
  Adjusted Weighted Average Cost of Capital   16.0%-18.0%    17%  Fair Value would Decrease

 

* Represents a single security, as of January 31, 2018. As a result, the range of values and weighted average for each unobservable input refer to a single value.

 

The significant unobservable inputs used in the fair value measurement of common stocks is liquidity discounts, total enterprise value/revenue, total enterprise value/earnings before interest & taxes, price/book, adjusted weighted average cost of capital and discount to NAV. Other market indicators are also considered. Changes in any of those inputs would result in lower or higher fair value measurement.

 

B. Federal and Other Income Taxes:

 

It is each Fund’s policy to comply with the Federal income and excise tax requirements of the Internal Revenue Code of 1986 (the “Code”), as amended, applicable to regulated investment companies and to timely distribute all of its investment company taxable income and net realized capital gains to shareholders in accordance with the timing requirements imposed by the Code. Therefore, no Federal income tax provision is required. Capital gains realized on some foreign securities are subject to foreign taxes. Dividends and interest from non-U.S. sources received by the Funds are generally subject to non-U.S. withholding taxes at rates ranging up to 30%. Such capital gains and withholding taxes, which are accrued as applicable, may be reduced or eliminated under the terms of applicable U.S. income tax treaties, and the Funds intend to undertake procedural steps to claim the benefits of such treaties. Where available, the Funds will file refund claims for foreign taxes withheld.

 

The cost basis of investments for federal income tax purposes at January 31, 2018 was as follows*:

 

Fund  Cost of
investments
   Gross unrealized
appreciation
   Gross unrealized
depreciation
   Net unrealized
appreciation
 
International Real Estate Equity Fund  $126,866,743   $24,016,337   $(19,396,924)  $4,619,413 
Realty Income & Growth Fund   54,822,834    58,928,640    (1,013,290)   57,915,350 
Global Infrastructure Fund   128,999,663    16,752,891    (4,847,855)   11,905,036 

 

 

 

* Because tax adjustments are calculated annually, the above table reflects the tax adjustments outstanding at the Funds’ previous fiscal year end. For the previous fiscal year’s Federal income tax information, please refer to the Notes to Financial Statements section in the Funds’ most recent semi-annual or annual report.

 

C. Distributions to Shareholders:

 

Each Fund intends to distribute all of its net investment income and net realized capital gains, if any, throughout the year to its shareholders in the form of dividends. Distributions to shareholders are recorded at the close of business on the ex-dividend date.

 

The amounts of dividends from net investment income and of distributions from net realized gains are determined in accordance with Federal income tax regulations, which may differ from GAAP. These differences are either considered temporary or permanent in nature. To the extent these differences are permanent in nature, such amounts are reclassified within the composition of net assets based on their Federal tax-basis treatment; temporary differences do not require reclassification. In the event dividends and distributions to shareholders exceed net investment income and net realized gains for tax purposes, they are reported as returns of capital.

 

D. Foreign Currency Translation Transactions:

 

The International Real Estate Equity Fund and Global Infrastructure Fund may invest without limitation in foreign securities. The Realty Income & Growth Fund may invest up to 35% of its net assets in foreign securities. The Funds do not isolate the portion of each portfolio invested in foreign securities of their net realized and unrealized gains and losses on investments resulting from changes in foreign exchange rates from the impact arising from changes in market process. Such fluctuations are included with net realized and unrealized gain or loss from investments. Net realized foreign currency transaction gains and losses arise from sales of foreign currencies, currency gains or losses realized between the trade and settlement dates on securities transactions, and the differences between the amounts of dividends, interest and foreign withholding taxes recorded on the Funds’ books and the U.S. dollar equivalent of the amounts actually received or paid. Net unrealized foreign currency translation gains and losses arise from changes in the value of assets and liabilities, other than investments in securities, resulting from changes in the exchange rates. The books and records of each Fund are maintained in U.S. dollars. Non-U.S. dollar-denominated amounts are translated into U.S. dollars as follows, with the resultant translation gains and losses recorded in the Statements of Operations:

 

i) fair value of investment securities and other assets and liabilities at the exchange rate on the valuation date,

 

ii) purchases and sales of investment securities, income and expenses at the exchange rate prevailing on the respective date of such transactions.

 

E. Risks Associated with Foreign Securities and Currencies:

 

Investments in securities of foreign issuers carry certain risks not ordinarily associated with investments in securities of domestic issuers. Such risks include future political and economic developments and the possible imposition of exchange controls or other foreign governmental laws and restrictions. In addition, with respect to certain countries, there is a possibility of expropriation of assets, confiscatory taxation, political or social instability or diplomatic developments, which could adversely affect investments in those countries. Generally, when the U.S. dollar rises in value against a foreign currency, the Funds’ investments denominated in that currency will lose value because that currency is worth fewer U.S. dollars; the opposite effect occurs if the U.S. dollar falls in relative value.

 

Certain countries may also impose substantial restrictions on investments in their capital markets by foreign entities, including restrictions on investments in issuers or industries deemed sensitive to relevant national interests. These factors may limit the investment opportunities available to the Funds or result in a lack of liquidity and high price volatility with respect to securities of issuers from developing countries.

 

F. Equity-Linked Structured Notes:

 

The Funds may invest in equity-linked structured notes. Equity-linked structured notes are securities which are specially designed to combine the characteristics of one or more underlying securities and their equity derivatives in a single note form. The return and/or yield or income component may be based on the performance of the underlying equity securities, and equity index, and/or option positions. Equity-linked structured notes are typically offered in limited transactions by financial institutions in either registered or non-registered form. An investment in equity-linked structured notes creates exposure to the credit risk of the issuing financial institution, as well as to the market risk of the underlying securities. There is no guaranteed return of principal with these securities and the appreciation potential of these securities may be limited by a maximum payment or call right. In

 

certain cases, equity-linked structured notes may be more volatile and less liquid than complex securities or other types of fixed-income securities. Such securities may exhibit price behavior that does not correlate with other fixed income securities.

 

G. Forward Currency Contracts:

 

The Funds are subject to foreign currency exchange rate risk in the normal course of pursuing their investment objectives. The Funds may use forward currency contracts to gain exposure to or economically hedge against changes in the value of foreign currencies. A forward currency contract (“forward”) is an agreement between two parties to buy and sell a currency at a set price on a future date. The market value of the forward contract fluctuates with changes in forward currency exchange rates. The forward contract is marked-to-market daily and the change in market value is recorded by each Fund as unrealized appreciation or depreciation. When the forward contract is closed, a Fund records a realized gain or loss equal to the fluctuation in value during the period the forward contract was open. A Fund could be exposed to risk if a counterparty is unable to meet the terms of a forward or if the value of the currency changes unfavorably. The Funds’ forward contracts are not subject to a master netting agreement or similar agreement. The International Real Estate Equity Fund and Global Infrastructure Fund entered into forward currency contracts during the reporting period to economically hedge against changes in the value of foreign currencies. Forward currency contracts outstanding at period end, if any, are listed after each Fund’s Schedule of Investments.

 

Item 2. Controls and Procedures.

 

(a)   The Registrant’s President and Chief 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 (the “1940 Act”)) (17 CFR 270.30a-3(c)) are effective as of a date within 90 days of the filing date of the report that includes the disclosure required by this paragraph, based on the evaluation of these controls and procedures required by Rule 30a-3(b) under the 1940 Act (17 CFR 270.30a-3(b)) and Rule 13a-15(b) or Rule 15d-15(b) under the Securities Exchange Act of 1934, as amended (17 CFR 240.13a-15(b) or 240.15d-15(d)).

 

(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 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.

 

Separate certifications for each principal executive officer and principal financial officer of the Registrant as required by Rule 30a-2(a) under the 1940 Act (17 CFR 270.30a-2(a)).  Filed herewith.

 

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.

 

(Registrant)  Alpine Equity Trust 

 

By (Signature and Title) /s/ Samuel A. Lieber

Samuel A. Lieber, President

 

Date   March 23, 2018                                                                      

 

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 (Signature and Title)* /s/ Samuel A. Lieber

Samuel A. Lieber, President

 

Date   March 23, 2018                                                                       

 

By (Signature and Title)* /s/ Ronald G. Palmer, Jr.

Ronald G. Palmer, Jr., Chief Financial Officer

 

Date   March 23, 2018                                                                       

 

* Print the name and title of each signing officer under his or her signature.

 
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