<PAGE> 1
- ---------------------------------
DRIEHAUS MUTUAL FUNDS
TRUSTEES & OFFICERS
Richard H. Driehaus
Chairman of the Board & President
Arthur B. Mellin
Trustee
Robert F. Moyer
Senior Vice President & Trustee DRIEHAUS MUTUAL FUNDS
A.R. Umans
Trustee
Daniel Zemanek DRIEHAUS ASIA PACIFIC
Trustee GROWTH FUND
William R. Andersen
Vice President DRIEHAUS EMERGING MARKETS
GROWTH FUND
Diane L. Wallace
Vice President & Treasurer
DISTRIBUTED BY:
Mary H. Weiss DRIEHAUS MUTUAL FUNDS
Vice President & Secretary
Robert H. Buchen SEMI-ANNUAL REPORT TO
Vice President SHAREHOLDERS
MARCH 31, 1998
Martin H. Brown
Vice President
INVESTMENT ADVISOR This report has been prepared for
Driehaus Capital Management, Inc. the shareholders of the Fund and
25 East Erie Street is not an offering to sell or buy
Chicago, IL 60611 any Fund securities. Such offering
is only made by the Fund's
DISTRIBUTOR prospectus.
Driehaus Mutual Funds
25 East Erie Street
Chicago, IL 60611
ADMINISTRATOR & TRANSFER AGENT
PFPC, Inc.
400 Bellevue Parkway
Suite 108
Wilmington, DE 19809
CUSTODIAN
Morgan Stanley Trust Company
One Pierrepont Plaza
Brooklyn, NY 11201
- ---------------------------------
<PAGE> 2
===============================================================================
DRIEHAUS ASIA PACIFIC GROWTH FUND
SCHEDULE OF INVESTMENTS
MARCH 31, 1998
(UNAUDITED)
===============================================================================
<TABLE>
<CAPTION>
Number Market
of Value
Shares (Note A)
- -------------------------------------------------------------------------------
EQUITY SECURITIES --- 96.3%
- -------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
FAR EAST --- 96.3%
AUSTRALIA --- 28.2%
Aristocrat Leisure, Ltd. ........................ 18,000 $ 45,002
Australia Provincial Newspapers Holdings, Ltd.... 25,200 46,124
Australian Gas Light Co., Ltd. .................. 3,600 29,245
Brambles Industries, Ltd. ....................... 2,800 58,398
Brazin, Ltd.** .................................. 47,800 82,418
Computershare, Ltd. ............................. 22,200 66,250
CSL, Ltd. ....................................... 11,900 88,228
Harris Scarfe Holdings, Ltd. .................... 11,495 27,062
Harvey Norman Holdings, Ltd. .................... 17,100 86,184
Intellect Holdings, Ltd.** ...................... 23,000 22,269
Lend Lease Corporation, Ltd. .................... 2,500 58,358
McGuigan (Brian) Holdings, Ltd. ................. 22,800 30,240
National Food, Ltd. ............................. 39,300 70,629
National Mutual Holdings, Ltd. .................. 27,300 59,563
OzEmail, Ltd. - ADR ............................. 2,100 34,913
Spotless Group, Ltd. ............................ 39,300 85,223
--------
890,106
--------
HONG KONG --- 17.2%
Beijing North Star Co., Ltd. .................... 100,000 26,781
China Foods Holdings, Ltd. ...................... 74,000 28,414
China Merchants Holdings International Co.,Ltd... 26,000 24,161
China Telecom, Ltd. - ADR**...................... 710 29,154
Esprit Holdings, Ltd. ........................... 82,000 29,898
Guangdong Kelon Electrical Holdings Co., Ltd. - H 39,000 45,302
IDT International, Ltd. ......................... 451,000 40,164
Jiangsu Expressway Co., Ltd. .................... 182,000 51,677
Li & Fung, Ltd. ................................. 18,000 28,575
Shenzhen Expressway Co., Ltd. - H ............... 100,000 28,072
Smartone Telecommunications ..................... 22,500 63,742
Tianjin Development Holdings, Ltd.** ............ 20,000 25,813
Union Bank of Hong Kong, Ltd. ................... 47,000 62,480
Varitronix International, Ltd. .................. 14,000 28,097
VTech Holdings, Ltd. ............................ 8,000 29,788
--------
542,118
--------
</TABLE>
Notes to Financial Statements are an integral part of this Schedule.
1
<PAGE> 3
===============================================================================
DRIEHAUS ASIA PACIFIC GROWTH FUND
SCHEDULE OF INVESTMENTS
MARCH 31, 1998
(UNAUDITED)
===============================================================================
<TABLE>
<CAPTION>
Number Market
of Value
Shares (Note A)
- -------------------------------------------------------------------------------
<S><C> <C> <C> <C>
FAR EAST (CONTINUED)
SINGAPORE --- 10.8%
Datapulse Technology, Ltd. ................. 204,000 $ 61,265
Electronic Resources, Ltd. ................. 26,000 28,496
Flextech Holdings, Ltd. .................... 53,000 45,946
JIT Holdings, Ltd.** ....................... 77,500 61,426
Singapore Technologies Engineering, Ltd.** . 69,000 61,098
Super Coffeemix Manufacturing, Ltd. ........ 116,000 28,013
Wing Tai Holdings, Ltd. .................... 54,000 52,831
--------
339,075
--------
PHILIPPINES --- 9.9%
Bankard, Inc.** ............................ 428,000 27,104
DMCI Holdings, Inc.** ...................... 600,000 47,495
Filinvest Land, Inc.** ..................... 300,000 32,851
Ionics Circuit, Inc. ....................... 57,300 29,860
Pilipino Telephone Corp.** ................. 264,800 44,717
Philippine Long Distance Telephone Co. - ADR 1,140 31,777
SPI Technologies, Inc. ..................... 151,900 97,195
--------
310,999
--------
JAPAN --- 8.2%
Brother Industries, Ltd. ................... 14,000 45,879
Daiseki Co., Ltd. .......................... 880 8,315
Don Quijote Co., Ltd. ...................... 1,300 46,306
Fuji Soft ABC, Inc. ........................ 600 19,617
Itoen, Ltd. ................................ 2,200 64,176
Ryohin Keikaku Co., Ltd. ................... 100 7,724
Yahoo Japan Corp.** ........................ 2 67,491
--------
259,508
--------
SOUTH KOREA --- 7.0%
L.G. Electronics ........................... 2,100 28,961
Medison Co., Ltd. .......................... 6,100 52,413
Nong Shim Co., Ltd. ........................ 900 36,391
Samsung Fire and Marine Insurance .......... 200 66,428
SK Telecom Co., Ltd. - ADR ................. 4,510 35,798
--------
219,991
--------
</TABLE>
Notes to Financial Statements are an integral part of this Schedule.
2
<PAGE> 4
===============================================================================
DRIEHAUS ASIA PACIFIC GROWTH FUND
SCHEDULE OF INVESTMENTS
MARCH 31, 1998
(UNAUDITED)
===============================================================================
<TABLE>
<CAPTION>
Number Market
of Value
Shares (Note A)
- -------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
FAR EAST (CONTINUED)
MALAYSIA --- 6.9%
IOI Corp. Berhad ............................ 35,000 $ 26,924
Magnum Corp. Berhad ......................... 56,000 48,001
Malaysian Assurance Alliance Berhad ......... 28,000 58,078
Road Builder (M) Holdings Berhad ............ 25,000 26,512
Technology Resources Industries Berhad ...... 51,000 58,287
----------
217,802
----------
INDONESIA --- 3.7%
PT Hanjaya Mandala Sampoerna ................ 23,500 21,327
PT Indofood Sukses Makmur ................... 77,000 33,827
PT Jaya Real Property ....................... 258,000 22,371
PT Komatsu Indonesia ........................ 75,000 10,188
PT Telekomunikasi Indonesia - ADR ........... 3,100 30,419
----------
118,132
----------
THAILAND --- 3.5%
KCE Electronics Public Co., Ltd. (Foreign)... 4,900 31,211
Malee Sampran Public Co., Ltd. (Foreign)**... 29,900 20,759
Total Access Communications (Local) ......... 50,000 59,000
----------
110,970
----------
TAIWAN --- 0.9%
Taiwan Semiconductor Manufacturing Co.,Ltd.** 1,120 28,980
----------
Total Far East .............................. $3,037,681
----------
Total Equity Securities (COST $3,024,847).... $3,037,681
----------
- -------------------------------------------------------------------------------
TOTAL INVESTMENTS (COST $3,024,847).......... 96.3% 3,037,681
Other Assets in Excess of Liabilities ...... 3.7% 116,172
------- ----------
Net Assets .................................. 100.0% $3,153,853
===============================================================================
</TABLE>
The federal income tax basis and unrealized apprecation (depreciation) for
all securities is as follows:
<TABLE>
<S> <C>
Basis $ 3,024,847
===========
Gross Appreciation $ 98,722
Gross Depreciation (85,888)
-----------
Net Appreciation $ 12,834
===========
</TABLE>
** Non-income producing security.
Notes to Financial Statements are an integral part of this Schedule.
3
<PAGE> 5
===============================================================================
DRIEHAUS ASIA PACIFIC GROWTH FUND
SCHEDULE OF INVESTMENTS BY INDUSTRY
MARCH 31, 1998
(UNAUDITED)
===============================================================================
<TABLE>
<CAPTION>
PERCENT OF PERCENT OF
INDUSTRY NET ASSETS INDUSTRY NET ASSETS
- -------- ---------- -------- ----------
<S> <C> <C> <C>
Appliances ................ 1.5% Insurance .............. 4.0%
Banking ................... 2.8% International Trading .. 0.9%
Beverages & Tobacco ....... 3.0% Leisure & Tourism ...... 2.9%
Broadcast & Publishing .... 1.5% Machinery & Engineering 2.3%
Business & Publishing Merchandising .......... 4.6%
Services ................ 5.4%
Miscellaneous Materials 0.9%
Chemicals.................. 0.8%
Real Estate ............ 8.0%
Communications ............ 1.1%
Retailing - Foods ...... 0.7%
Computer Manufacturing .... 4.0%
Retailing - Goods ...... 4.1%
Consumer Non-Durables ..... 0.8%
Telecommunications ..... 12.3%
Construction .............. 2.3%
Telephone Utilities .... 1.0%
Electrical & Electronics .. 4.2%
Tobacco ................ 2.6%
Electronic Components ..... 6.6%
Transportation Multi-
Electronic Systems/Devices. 3.9% Industry ............. 0.2%
Food & Household Products.. 6.8% Transportation R & R ... 2.5%
Food Processors ........... 0.9% Utilities .............. 0.9%
Health Care ............... 2.8% Other Assets Less
Liabilities........... 3.7%
-----
TOTAL .................. 100.0%
=====
</TABLE>
Notes to Financial Statements are an integral part of this Schedule.
4
<PAGE> 6
===============================================================================
DRIEHAUS ASIA PACIFIC GROWTH FUND
STATEMENT OF ASSETS AND LIABILITIES
MARCH 31, 1998 (UNAUDITED)
===============================================================================
<TABLE>
<S> <C>
ASSETS:
Investments, at market value (Cost $3,024,847)......................$3,037,681
Cash ............................................................... 414,104
Receivables:
Dividends ........................................................ 6,178
Interest ......................................................... 3,356
Investment securities sold ....................................... 125,894
Due from advisor ................................................. 21,542
Prepaid expenses ................................................... 2,220
Deferred organizational costs ...................................... 27,825
----------
- -------------------------------------------------------------------------------
TOTAL ASSETS .................................................. 3,638,800
----------
- -------------------------------------------------------------------------------
LIABILITIES:
Payables:
Investment securities purchased .................................. 416,180
Unsettled foreign currency foward contracts from portfolio hedges. 12,327
Accrued expenses ................................................. 23,936
Payable to affiliates ............................................ 32,504
----------
- -------------------------------------------------------------------------------
TOTAL LIABILITIES ............................................. 484,947
----------
- -------------------------------------------------------------------------------
NET ASSETS ..........................................................$3,153,853
==========
SHARES OUTSTANDING .................................................. 316,918
==========
NET ASSET VALUE PER SHARE ...........................................$ 9.95
==========
===============================================================================
NET ASSETS CONSISTED OF THE FOLLOWING AT MARCH 31, 1998:
Paid-in capital ....................................................$3,195,436
Undistributed net investment income................................. 1,817
Undistributed net realized loss .................................... (42,650)
Undistributed net realized foreign exchange loss ................... (5,637)
Undistributed net realized foreign exchange loss on portfolio hedges (12,327)
Unrealized foreign exchange gain ................................... 4,380
Unrealized appreciation of investments ............................. 12,834
----------
NET ASSETS ...................................................$3,153,853
==========
===============================================================================
</TABLE>
Notes to Financial Statements are an integral part of this Statement.
5
<PAGE> 7
===============================================================================
DRIEHAUS ASIA PACIFIC GROWTH FUND
STATEMENT OF OPERATIONS
FOR THE PERIOD DECEMBER 31, 1997 (COMMENCEMENT OF OPERATIONS) THROUGH
MARCH 31, 1998
(UNAUDITED)
===============================================================================
<TABLE>
<S> <C> <C>
INVESTMENT INCOME (LOSS):
Income:
Dividends (net of non-reclaimable foreign taxes of $83).......... $ 7,490
Interest ........................................................ 5,837
---------
- -------------------------------------------------------------------------------
Total income .................................................. 13,327
---------
- -------------------------------------------------------------------------------
Expenses:
Investment advisory fee ......................................... 5,852
Administration fee............................................... 28,500
Professional fees ............................................... 6,587
Federal and state registration fees ............................. 1,042
Custodian fee ................................................... 13,074
Transfer agent fees ............................................. 9,013
Trustees' fees .................................................. 1,200
Amortization of organization costs .............................. 1,465
Miscellaneous ................................................... 1,830
- -------------------------------------------------------------------------------
Total expenses before fees waived and reimbursements............. 68,563
---------
Administration fee waived ....................................... (27,711)
Transfer agent fees waived ...................................... (7,800)
Expense reimbursement from adviser............................... (21,542)
---------
Total expenses net of fees waived and reimbursements........... 11,510
---------
- -------------------------------------------------------------------------------
Net investment income........................................ 1,817
---------
- -------------------------------------------------------------------------------
NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS:
Net realized loss from security transactions .................... (42,650)
Net realized foreign exchange loss .............................. (5,637)
Net realized foreign exchange loss on portfolio hedges .......... (12,327)
Net change in unrealized foreign exchange gain .................. 4,380
Net change in unrealized appreciation of investments ............ 12,834
---------
- -------------------------------------------------------------------------------
Net realized and unrealized loss on investments ............. (43,400)
---------
NET DECREASE IN NET ASSETS RESULTING FROM OPERATIONS ................ ($41,583)
=========
===============================================================================
</TABLE>
Notes to Financial Statements are an integral part of this Statement.
6
<PAGE> 8
===============================================================================
DRIEHAUS ASIA PACIFIC GROWTH FUND
STATEMENT OF CHANGES IN NET ASSETS
FOR THE PERIOD DECEMBER 31, 1997 (COMMENCEMENT OF OPERATIONS) THROUGH
MARCH 31, 1998
(UNAUDITED)
===============================================================================
<TABLE>
<S> <C>
INCREASE IN NET ASSETS:
Operations:
Net investment income ..................................... $ 1,817
Net realized and unrealized loss on investments ........... (43,400)
----------
Net decrease in net assets resulting from operations (41,583)
----------
- -------------------------------------------------------------------------------
Capital share transactions:
Net increase in net assets derived
from capital share transactions* ........................ 3,195,436
----------
Total increase in net assets ............................ 3,153,853
----------
- -------------------------------------------------------------------------------
NET ASSETS:
- -------------------------------------------------------------------------------
Beginning of period ......................................... 0
----------
End of period ............................................... $3,153,853
==========
===============================================================================
*Capital share transactions are as follows:
<CAPTION>
SHARES VALUE
------ -----
<S> <C> <C>
For the period ended March 31, 1998
Shares purchased ........................................ 316,918 $3,195,436
Shares reinvested ....................................... -- --
Shares redeemed ......................................... -- --
------- ----------
Net increase from capital share transactions ....... 316,918 $3,195,436
======= ==========
===============================================================================
</TABLE>
Notes to Financial Statements are an integral part of this Statement.
7
<PAGE> 9
===============================================================================
DRIEHAUS ASIA PACIFIC GROWTH FUND
FINANCIAL HIGHLIGHTS
FOR THE PERIOD DECEMBER 31, 1997 (COMMENCEMENT OF OPERATIONS) THROUGH
MARCH 31, 1998
(UNAUDITED)
===============================================================================
The Table below sets forth financial data for a share of capital stock
outstanding throughout the period presented.
<TABLE>
<S> <C>
Net asset value, beginning of period ....................... $ 10.00
--------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income .................................. $ 0.01
Net loss on securities (both realized and unrealized) .. (0.06)
--------
Total from investment operations .................... (0.05)
--------
LESS DISTRIBUTIONS:
Dividends from net investment income ................... 0.00
Distributions from capital gains ....................... 0.00
--------
Total distributions .................................. 0.00
--------
Net asset value, end of period ............................. $ 9.95
========
Total Return ............................................... (0.50)% **
RATIOS/SUPPLEMENTAL DATA
Net assets, end of period (in 000's) ................... $ 3,154
Ratio of expenses to average net assets ................ 2.95 % * +
Ratio of net investment income to average net assets ... 0.47 % *
Portfolio turnover ..................................... 83.49 % **
Annualized portfolio turnover .......................... 338.61 % *
===============================================================================
</TABLE>
* Annualized
** Not Annualized
+ Such ratios are after administrative agent and transfer agent waivers
and Adviser expense reimbursements. PFPC Inc., the administrative agent
and transfer agent, waived a portion of its fees. The Adviser agreed to reduce
its fee and absorb other operating expenses to the extent necessary to ensure
that the total fund operating expenses (other than interest, taxes, brokerage
commissions and other portfolio transaction expenses, capital expenditures and
extraordinary expenses) will not exceed 2.95% of the net assets of the Driehaus
Asia Pacific Growth Fund for the first twelve months of its operations.
Average commission rate paid per share on stock transactions for the period
ended March 31, 1998 was $0.005. Foreign commissions usually are lower than
U.S. commissions when expressed as cents per share due to the lower per share
price of many non-U.S securities.
Notes to Financial Statements are an integral part of this Schedule.
8
<PAGE> 10
===============================================================================
DRIEHAUS EMERGING MARKETS GROWTH FUND
SCHEDULE OF INVESTMENTS
MARCH 31, 1998
(UNAUDITED)
===============================================================================
<TABLE>
<CAPTION>
Number Market
of Value
Shares (Note A)
- -------------------------------------------------------------------------------
EQUITY SECURITIES --- 95.3%
- -------------------------------------------------------------------------------
<S> <C> <C> <C>
EUROPE --- 27.1%
GREECE --- 5.9%
Athens Medical Care S.A. ................... 3,700 $ 61,036
Chipita International S.A. ................. 2,500 49,332
Delta Informatics S.A. ..................... 2,620 63,458
Royal Olympic Cruise Lines, Inc.** ......... 3,000 50,250
----------
224,076
----------
PORTUGAL --- 5.0%
Brisa-Auto Estradas de Portugal S.A. ....... 1,140 52,398
Semapa Sociedade de Investimento e Gestao... 1,750 53,584
Telecel-Comunicacoes Pessoais S.A.** ....... 560 86,932
----------
192,914
----------
POLAND --- 4.2%
Bank Handlowy W Warszawie - GDR** .......... 3,200 53,024
Izolacja S.A.** ............................ 650 46,214
Prokom Software - GDR** .................... 3,400 62,900
----------
162,138
----------
HUNGARY --- 4.1%
Gedeon Richter RT - GDR .................... 410 43,143
Matav RT - ADR ** .......................... 1,825 56,803
Mol Magyar Olaj-Es Gazipari RT - GDR ....... 1,800 55,125
----------
155,071
----------
TURKEY --- 4.0%
Efes Sinai Yatirim Holding A.S. - GDR**..... 3,200 58,016
Ege Biracilik Ve Malt Sanayii A.S. ......... 390,000 56,162
Yapi Ve Kredi Bankasi A.S. - GDR** ......... 1,100 38,500
----------
152,678
----------
RUSSIA --- 3.9%
Lukoil Holding - ADR ....................... 275 19,331
Mosenergo - ADR ............................ 1,000 36,770
Sun Brewing, Ltd. - GDR** .................. 3,000 46,558
Unified Energy Systems - GDR **............. 1,400 44,800
----------
147,459
----------
Total Europe ............................... 1,034,336
----------
</TABLE>
Notes to Financial Statements are an integral part of this Schedule.
9
<PAGE> 11
===============================================================================
DRIEHAUS EMERGING MARKETS GROWTH FUND
SCHEDULE OF INVESTMENTS
MARCH 31, 1998
(UNAUDITED)
===============================================================================
<TABLE>
<CAPTION>
Number Market
of Value
Shares (Note A)
- -------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
FAR EAST --- 24.7%
HONG KONG --- 6.8%
Brilliance China Automotive Holdings, Ltd. .... 5,000 $ 53,125
Esprit Holdings, Ltd. ......................... 128,000 46,670
HSBC Holdings, PLC ............................ 1,600 48,941
IDT International, Ltd. ....................... 600,000 53,433
Smartone Telecommunications ................... 20,000 56,659
---------
258,828
---------
PHILIPPINES --- 5.8%
Belle Corp.** ................................. 750,000 43,537
Digital Telecommunications Philippines, Inc.**. 700,000 36,202
Ionics Circuit, Inc. .......................... 80,000 41,690
Solid Group, Inc. ............................. 900,000 48,920
SPI Technologies, Inc. ........................ 80,000 51,189
---------
221,538
---------
MALAYSIA --- 3.3%
Magnum Corp., Berhad .......................... 50,000 42,858
Malaysian Assurance Alliance Berhad ........... 21,000 43,559
Technology Resources Industries Berhad ........ 35,000 40,001
---------
126,418
---------
SINGAPORE --- 2.5%
Datapulse Technology, Ltd. .................... 170,000 51,054
Wing Tai Holdings, Ltd. ....................... 46,000 45,005
---------
96,059
---------
SOUTH KOREA --- 2.4%
Medison Co., Ltd. ............................. 5,400 46,398
SK Telecom Co., Ltd. - ADR .................... 5,886 46,720
---------
93,118
---------
THAILAND --- 1.5%
Cogeneration Public Co., Ltd. (Foreign)........ 34,000 25,555
Thai Storage Battery Public Co., Ltd. (Local).. 26,000 33,453
---------
59,008
---------
</TABLE>
Notes to Financial Statements are an integral part of this Schedule.
10
<PAGE> 12
- --------------------------------------------------------------------------------
DRIEHAUS EMERGING MARKETS GROWTH FUND
Schedule of Investments
March 31, 1998
(Unaudited)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Number Market
of Value
Shares (Note A)
- --------------------------------------------------------------------------------
<S> <C> <C>
FAR EAST (Continued)
INDIA --- 1.4%
ITC, Ltd. - GDR ** .............................. 2,100 $51,765
--------
INDONESIA --- 1.0%
PT Fiskaragung Perkasa .......................... 500,000 39,018
--------
Total Far East .................................. 945,752
--------
SOUTH AMERICA --- 17.2%
BRAZIL --- 11.0%
Centrais Electricas Brasileiras S.A. - ADR ...... 1,000 24,801
Companhia Energetica de Minas Gerais - ADR ...... 1,630 79,275
Companhia Energetica de Sao Paulo - ADR ......... 3,000 47,088
Companhia Paranaense de Energia-Copel - ADR ..... 4,250 61,891
Petroleo Brasileiro S.A. - ADR .................. 2,400 56,990
Telebras -ADR ................................... 810 105,148
Uniao de Bancos Brasileiros S.A. - GDR .......... 1,225 44,406
--------
419,599
--------
ARGENTINA --- 2.9%
Telefonica de Argentina S.A. - ADR .............. 1,400 53,288
YPF S.A. - ADR .................................. 1,700 57,800
--------
111,088
--------
VENEZUELA --- 1.9%
Companhia Anonima Nacional Telefonos de Venezuela
- ADR.......................................... 1,800 75,262
--------
CHILE --- 1.4%
Sociedad Quimica Y Minera De Chile - ADR ........ 1,200 52,800
--------
Total South America ............................. 658,749
--------
</TABLE>
Notes to Financial Statements are an integral part of this Schedule.
11
<PAGE> 13
- --------------------------------------------------------------------------------
DRIEHAUS EMERGING MARKETS GROWTH FUND
Schedule of Investments
March 31, 1998
(Unaudited)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Number Market
of Value
Shares (Note A)
- ------------------------------------------------------------------------------------
<S> <C> <C>
AFRICA --- 11.7%
SOUTH AFRICA --- 11.7%
ABSA Group, Ltd...................................... 8,500 $77,175
First South Africa Corp., Ltd.** .................... 7,000 52,937
Klipton, Ltd. ....................................... 23,300 43,004
Liberty Life Association of Africa, Ltd. ............ 2,000 67,475
Nedcor, Ltd. ........................................ 2,000 58,743
Persetel Q Data Holdings, Ltd. ...................... 9,100 74,315
Super Group, Ltd. ................................... 28,000 71,683
--------
445,332
--------
Total Africa ........................................ 445,332
--------
MIDDLE EAST --- 8.3%
ISRAEL --- 8.3%
Bank Hapoalim, Ltd. ................................. 25,000 68,429
First International Bank of Israel, Ltd. ............ 500 77,728
Formula Systems, Ltd.** ............................. 2,100 85,929
Gilat Satellite Networks, Ltd.** .................... 1,600 58,400
Tecnomatix Technologies, Ltd.** ..................... 700 26,338
--------
316,824
--------
Total Middle East ................................... 316,824
--------
NORTH AMERICA --- 6.3%
MEXICO --- 6.3%
Grupo Televisa S.A. - GDR** ......................... 1,400 51,275
Consorcio Hogar S.A. de CV - B** ................... 28,000 58,841
Corporacion Interamericana
de Entretenimiento S.A. - B** ..................... 7,000 54,404
Grupo Continental S.A. .............................. 15,000 53,007
Grupo Financiero Banorte de CV- B** ................. 15,000 23,950
--------
241,477
--------
Total North America ................................. 241,477
--------
Total Equity Securities (Cost $3,470,667)............ $3,642,470
----------
</TABLE>
Notes to Financial Statements are an integral part of this Schedule.
12
<PAGE> 14
===============================================================================
DRIEHAUS EMERGING MARKETS GROWTH FUND
SCHEDULE OF INVESTMENTS
MARCH 31, 1998
(UNAUDITED)
===============================================================================
<TABLE>
<S> <C>
TOTAL INVESTMENTS (COST $3,470,667)............... 95.3% $3,642,470
Other Assets in Excess of Liabilities ........... 4.7% 179,004
----- ----------
Net Assets ....................................... 100.0% $3,821,474
===============================================================================
</TABLE>
The federal income tax basis and unrealized apprecation (depreciation) for
all securities is as follows:
Basis $3,470,667
==========
Gross Appreciation $ 236,817
Gross Depreciation (65,014)
----------
Net Appreciation $ 171,803
==========
** Non-income producing security.
Notes to Financial Statements are an integral part of this Schedule.
13
<PAGE> 15
- --------------------------------------------------------------------------------
DRIEHAUS EMERGING MARKETS GROWTH FUND
Schedule of Investments by Industry
March 31, 1998
(Unaudited)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PERCENT OF PERCENT OF
INDUSTRY NET ASSETS INDUSTRY NET ASSETS
- -------- ---------- -------- ----------
<S> <C> <C> <C>
Automobiles .................. 0.9% Financial Services .......... 0.6%
Banking ...................... 12.2% Foods & Household ........... 1.3%
Beverages .................... 4.1% Food Processors ............. 1.0%
Beverages & Tobacco .......... 1.5% Health Care ................. 1.6%
Broadcast & Publishing ....... 3.3% Home Building ............... 1.5%
Building Materials ........... 1.2% Insurance ................... 1.8%
Chemicals .................... 1.4% Leisure & Tourism ........... 3.9%
Communications ............... 1.5% Merchandising ............... 1.2%
Computer Manufacturing ....... 1.3% Oil ......................... 5.0%
Computer Software & EDP Services 6.5% Real Estate ................. 2.3%
Consumer Durables Multi-Industry 1.4% Telecommunications .......... 8.5%
Construction ................. 1.4% Telephone Utilities ......... 4.1%
Drugs ........................ 1.1% Tobacco ..................... 2.7%
Electrical & Electronics ..... 2.4% Transportation Multi-Industry 1.4%
Electrical Utilities.......... 7.0% Trucking .................... 1.9%
Electronic Components ........ 1.7% Truck Manufacturing ......... 1.4%
Electronic Systems/Devices ... 4.4% Other Assets Less Liabilities 4.7%
Energy Sources ............... 1.8% TOTAL ....................... 100.0%
</TABLE>
14
<PAGE> 16
- --------------------------------------------------------------------------------
DRIEHAUS EMERGING MARKETS GROWTH FUND
Statement of Assets and Liabilities
March 31, 1998 (Unaudited)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
<S> <C>
ASSETS:
Investments, at market value (Cost $3,470,667)............. $3,642,470
Cash ...................................................... 425,801
Receivables:
Dividends ............................................... 4,503
Interest ................................................ 2,255
Investment securities sold .............................. 63,082
Due from advisor ........................................ 18,461
Prepaid expenses .......................................... 2,864
Deferred organizational costs ............................. 27,867
- --------------------------------------------------------------------------------
TOTAL ASSETS .......................................... 4,187,303
--------------
- --------------------------------------------------------------------------------
LIABILITIES:
Investment securities purchased ........................... 311,453
Accrued expenses .......................................... 21,363
Payable to affiliates ..................................... 33,013
--------------
- --------------------------------------------------------------------------------
TOTAL LIABILITIES ..................................... 365,829
--------------
- --------------------------------------------------------------------------------
NET ASSETS .................................................. $3,821,474
==============
SHARES OUTSTANDING .......................................... 362,333
==============
NET ASSET VALUE PER SHARE ................................... $10.55
==============
================================================================================
NET ASSETS CONSISTED OF THE FOLLOWING AT MARCH 31, 1998:
Paid-in capital ........................................... $3,714,540
Undistributed net investment loss.......................... (3,040)
Undistributed net realized loss ........................... (50,944)
Undistributed net realized foreign exchange loss .......... (12,152)
Unrealized foreign exchange gain .......................... 1,267
Unrealized appreciation of investments .................... 171,803
--------------
NET ASSETS ........................................... $3,821,474
==============
================================================================================
</TABLE>
Notes to Financial Statements are an integral part of this Statement.
15
<PAGE> 17
- --------------------------------------------------------------------------------
DRIEHAUS EMERGING MARKETS GROWTH FUND
Statement of Operations
For the period December 31, 1997 (commencement of operations) through
March 31, 1998
(Unaudited)
- --------------------------------------------------------------------------------
<TABLE>
<S> <C>
INVESTMENT INCOME (LOSS):
Income:
Dividends (net of non-reclaimable foreign taxes of $0)............. $4,664
Interest .......................................................... 6,612
--------------
- -------------------------------------------------------------------------------------
Total income .................................................... 11,276
--------------
- -------------------------------------------------------------------------------------
Expenses:
Investment advisory fee ........................................... 7,808
Administration fee ................................................ 28,500
Professional fees ................................................. 6,609
Federal and state registration fees ............................... 1,042
Custodian fee ..................................................... 10,599
Transfer agent fees ............................................... 9,008
Trustees' fees .................................................... 1,200
Amortization of organization costs ................................ 1,467
Miscellaneous ..................................................... 2,115
- -------------------------------------------------------------------------------------
Total expenses before fees waived and reimbursements............. 68,348
--------------
Administration fees waived ...................................... (27,771)
Transfer agent fees waived ...................................... (7,800)
Expense reimbursement from adviser............................... (18,461)
--------------
Total expenses net of fees waived and reimbursements............. 14,316
--------------
- -------------------------------------------------------------------------------------
Net investment loss............................................ (3,040)
--------------
- -------------------------------------------------------------------------------------
NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS:
Net realized loss from security transactions ...................... (50,944)
Net realized foreign exchange loss ................................ (12,152)
Net change in unrealized foreign exchange gain..................... 1,267
Net change in unrealized appreciation of investments .............. 171,803
--------------
- -------------------------------------------------------------------------------------
Net realized and unrealized gain on investments ............... 109,974
--------------
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS .................. $106,934
===============
======================================================================================
</TABLE>
Notes to Financial Statements are an integral part of this Statement.
16
<PAGE> 18
- --------------------------------------------------------------------------------
DRIEHAUS EMERGING MARKETS GROWTH FUND
Statement of Changes in Net Assets
For the period December 31, 1997 (commencement of operations)
through March 31, 1998
(Unaudited)
- --------------------------------------------------------------------------------
<TABLE>
<S> <C>
INCREASE IN NET ASSETS:
Operations:
Net investment loss ................................... $ (3,040)
Net realized and unrealized gain on investments ....... 109,974
--------------
Net increase in net assets resulting from operations 106,934
--------------
- --------------------------------------------------------------------------------
Capital share transactions:
Net increase in net assets derived
from capital share transactions* .................... 3,714,540
--------------
Total increase in net assets ........................ 3,821,474
--------------
- --------------------------------------------------------------------------------
NET ASSETS:
- --------------------------------------------------------------------------------
Beginning of period ..................................... 0
--------------
End of period ........................................... $3,821,474
==============
================================================================================
*Capital share transactions are as follows:
Shares Value
------- ----------
For the period ended March 31, 1998
Shares purchased .......................362,333 $3,714,540
Shares reinvested ...................... -- --
Shares redeemed ........................ -- --
------- ----------
Net increase from capital share
transactions......................362,333 $3,714,540
======= ==========
================================================================================
</TABLE>
Notes to Financial Statements are an integral part of this Statement.
17
<PAGE> 19
- --------------------------------------------------------------------------------
DRIEHAUS EMERGING MARKETS GROWTH FUND
Financial Highlights
For the period December 31, 1997 (commencement of operations)
through March 31, 1998
(Unaudited)
- --------------------------------------------------------------------------------
The Table below sets forth financial data for a share of capital stock
outstanding throughout the period presented.
Net asset value, beginning of period ................... $10.00
INCOME FROM INVESTMENT OPERATIONS:
Net investment loss ..............................$ (0.01)
Net gains on securities (both realized and
unrealized) 0.56
-------
Total from investment operations .............. 0.55
-------
LESS DISTRIBUTIONS:
Dividends from net investment income ............. 0.00
Distributions from capital gains ................. 0.00
-------
Total distributions ............................ 0.00
-------
Net asset value, end of period ......................... $10.55
=======
Total Return ........................................... 5.50 % **
RATIOS/SUPPLEMENTAL DATA
Net assets, end of period (in 000's) ............. $3,821
Ratio of expenses to average net assets .......... 2.75 % * +
Ratio of net investment loss to average net assets (0.58)% *
Portfolio turnover ............................... 86.37 % **
Annualized portfolio turnover .................... 350.28 % *
- --------------------------------------------------------------------------------
* Annualized
** Not Annualized
+ Such ratios are after administrative agent and transfer agent waivers and
Adviser expense reimbursements. PFPC Inc., the administrative agent and
transfer agent waived a portion of its fees. The Adviser agreed to reduce its
fee and absorb other operating expenses to the extent necessary to ensure that
the total fund operating expenses (other than interest, taxes, brokerage
commissions and other portfolio transaction expenses, capital expenditures and
extraordinary expenses) will not exceed 2.75% of the net assets of the
Driehaus Emerging Markets Growth Fund for the first twelve months of its
operations.
Average commission rate paid per share on stock transactions for the period
ended March 31, 1998 was $0.003. Foreign commissions are usually lower than
U.S. commissions when expressed as cents per share due to the lower per share
price of many non-U.S. securities.
Notes to Financial Statements are an integral part of this Schedule.
18
<PAGE> 20
DRIEHAUS ASIA PACIFIC GROWTH FUND AND
DRIEHAUS EMERGING MARKETS GROWTH FUND
NOTES TO FINANCIAL STATEMENTS
FOR THE PERIOD DECEMBER 31, 1997 (COMMENCEMENT OF OPERATIONS) THROUGH MARCH 31,
1998
(UNAUDITED)
A. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
ORGANIZATION
The Driehaus Asia Pacific Growth Fund and the Driehaus Emerging Markets
Growth Fund (collectively, the "Funds") are each a series of the Driehaus
Mutual Funds (the "Trust"), a registered management investment company. The
Trust is a Delaware business trust organized under an Agreement and Declaration
of Trust dated May 31, 1996 and may issue an unlimited number of full and
fractional units of beneficial interest (shares) without par value. The Funds
commenced operations and were initially offered on December 31, 1997. The
Funds are self-distributed.
The investment objective of the Driehaus Asia Pacific Growth Fund is to
maximize capital appreciation by investing primarily in equity securities of
companies in the Asia Pacific region using the growth style investment
criteria.
The investment objective of the Driehaus Emerging Markets Growth Fund
is to maximize capital appreciation by investing primarily in the equity
securities of companies in emerging markets around the world using the growth
style investment criteria.
SECURITIES VALUATION AND TRANSACTIONS
Depending upon local convention or regulation, equity securities may be
valued at the last sale price, last bid or asked price, or the mean between
the last bid and asked prices as of, in each case, the close of the appropriate
exchange or other designated time. Securities for which market quotations are
not readily available are valued at fair value as determined in good faith by
or under the direction of the Trust's Board of Trustees.
Securities transactions are accounted for on trade date. The cost of
investments sold is determined by the use of specific identification method
for both financial reporting and income tax purposes. Interest income is
recorded on an accrual basis. Dividend income, net of non-reclaimable foreign
taxes withheld, is recorded on the ex-dividend date.
The Funds determine income and expenses, daily. This change in net
asset value is allocated daily.
FEDERAL INCOME TAXES
No provision is made for Federal income taxes as it is each Fund's
intention to qualify as a regulated investment company under Subchapter M of
the Internal Revenue Code and to make all the required distributions to its
shareholders in amounts sufficient to relieve the Funds from all or
substantially all Federal income and excise taxes.
FOREIGN CURRENCY TRANSLATION
Foreign currency is translated into U.S. dollar values based upon the
current rates of exchange on the date of the Funds' valuations.
19
<PAGE> 21
DRIEHAUS ASIA PACIFIC GROWTH FUND AND
DRIEHAUS EMERGING MARKETS GROWTH FUND
NOTES TO FINANCIAL STATEMENTS - (CONTINUED)
FOR THE PERIOD DECEMBER 31, 1997 (COMMENCEMENT OF OPERATIONS) THROUGH MARCH 31,
1998
(UNAUDITED)
Net realized foreign exchange gains or losses which are reported by the
Funds result from currency gains and losses on transaction hedges arising
from changes in exchange rates between the trade and settlement dates on
forward contracts underlying securities transactions and the difference between
the amounts accrued for dividends, interest, and reclaimable foreign
withholding taxes and the amounts actually received or paid in U.S. dollars for
these items. Net unrealized foreign exchange gains and losses result from
changes in the U.S. dollar value of assets and liabilities, (other than
investments in securities) which are denominated in foreign currencies, as a
result of changes in exchange rates.
Net realized foreign exchange gains or losses on portfolio hedges
result from the non-speculative use of forward contracts with respect to
portfolio positions denominated or quoted in a particular currency in order to
reduce or limit exposure in that currency. The Funds had no open portfolio
hedges at March 31, 1998.
The Funds do not isolate that portion of the results of operations
which results from fluctuations in foreign exchange rates on investments
held. These fluctuations are included with the net realized and unrealized
gains or losses which result from changes in the market prices of investments.
DEFERRED ORGANIZATION COSTS
Organization costs incurred by the Funds have been deferred and are
amortized over a period of 60 months from the date the Fund commenced
operations.
USE OF ESTIMATES
The preparation of financial statements in conformity with generally
accepted accounting principles requires management to make estimates and
assumptions that affect the reported amount of assets and liabilities and
disclosure of contingent assets and liabilities at the date of the financial
statements and the reported amounts of net increases or decreases in net assets
from operations during the reporting period. Actual results could differ from
those estimates.
B. INVESTMENT ADVISORY FEES, ADMINISTRATIVE FEES AND TRANSACTIONS WITH
AFFILIATES
Richard H. Driehaus, the Chairman and President of the Trust, is also
the Chairman of the Board, Chief Executive Officer, director, and sole
shareholder of Driehaus Capital Management, Inc., a registered investment
adviser, and of Driehaus Securities Corporation, a registered broker-dealer.
Driehaus Capital Management, Inc. ("DCM") serves as the Funds'
investment adviser. In return for its services to the Funds, DCM receives a
monthly fee, computed and accrued daily at an annual rate of 1.5% of average
net assets. The amount accrued to DCM during the period from December 31, 1997
to March 31, 1998 for The Driehaus Asia Pacific Growth Fund is $5,852, of which
$3,244 is included in Payable to affiliates. The amount accrued to DCM during
the period December 31, 1997 to March 31, 1998 for the Driehaus Emerging
Markets Growth Fund is $7,808, of which $3,694 is included in Payable to
affiliates. DCM agreed to reduce its fee and absorb other operating expenses
of the Funds to the extent necessary to ensure that the total Fund operating
expense (other than interest, taxes, brokerage commissions and other portfolio
transaction expenses, capital expenditures and extraordinary expenses)
20
<PAGE> 22
DRIEHAUS ASIA PACIFIC GROWTH FUND AND
DRIEHAUS EMERGING MARKETS GROWTH FUND
NOTES TO FINANCIAL STATEMENTS - (CONTINUED)
FOR THE PERIOD DECEMBER 31, 1997 (COMMENCEMENT OF OPERATIONS) THROUGH MARCH 31,
1998
(UNAUDITED)
will not exceed 2.95% of the average net assets of the Driehaus Asia Pacific
Growth Fund and 2.75% of the average net assets of the Driehaus Emerging
Markets Growth Fund on an annual basis for the first twelve months of the
Funds' operations after the effective date of the Funds' registration
statement. As of March 31, 1998, DCM absorbed $21,542 and $18,461 of expenses
for the Driehaus Asia Pacific Growth Fund and the Driehaus Emerging Markets
Growth Fund, respectively.
DCM advanced certain organization costs to the Fund. As of March 31,
1998, $29,260 and $29,319 of organization costs advanced are included in
payable to affiliates for the Driehaus Asia Pacific Growth Fund and the
Driehaus Emerging Markets Growth Fund, respectively.
For the period ended March 31, 1998, Driehaus Asia Pacific Growth Fund
and Driehaus Emerging Markets Growth Fund paid $30,459 and $23,389,
respectively, in total commissions to all brokers. Driehaus Securities
Corporation ("DSC") acts as a broker for the Funds on certain domestically
traded securities. During the period, DSC traded 19,088 and 82,994 shares for
the Driehaus Asia Pacific Growth Fund and the Driehaus Emerging Markets Growth
Fund, respectively, and received $1,527 and $6,640, respectively, in
commissions. A portion of these commissions are, in turn, paid by DSC to third
parties for clearing and floor brokerage services.
Certain officers of the Trust are also officers of the Adviser. No such
officers received compensation from the Fund.
PFPC Inc., a wholly owned, indirect subsidiary of PNC Bank, serves as
the Funds' administrative and accounting agent. PFPC has agreed to waive
its minimum fees during the first two years of the Funds' operations. For the
period ended March 31, 1998, $27,711 and $27,771 of these fees have been waived
by PFPC Inc. for the Driehaus Asia Pacific Growth Fund and the Driehaus
Emerging Markets Growth Fund, respectively.
PFPC Inc. also acts as the transfer agent and dividend disbursing agent
for both Funds. PFPC Inc. has agreed to waive a portion of its monthly base
fee for transfer agency service for the first two years of the Funds. For the
period ended March 31, 1998, $7,800 and $7,800 of these fees have been waived
by PFPC Inc. for the Driehaus Asia Pacific Growth Fund and the Driehaus
Emerging Markets Growth Fund, respectively.
C. INVESTMENT TRANSACTIONS
The aggregate purchases, and sales of investment securities, other than
short-term obligations, for the period December 31, 1997 through March 31,
1998, were as follows:
<TABLE>
<CAPTION>
Driehaus Asia Pacific Growth Fund Driehaus Emerging Markets Growth Fund
--------------------------------- -------------------------------------
<S> <C> <C>
Purchases $4,041,095 $4,909,639
Sales $ 973,598 $1,388,028
</TABLE>
21
<PAGE> 23
DRIEHAUS ASIA PACIFIC GROWTH FUND AND
DRIEHAUS EMERGING MARKETS GROWTH FUND
NOTES TO FINANCIAL STATEMENTS- (CONTINUED)
FOR THE PERIOD DECEMBER 31, 1997 (COMMENCEMENT OF OPERATIONS) THROUGH MARCH 31,
1998
(UNAUDITED)
D. RESTRICTED SECURITIES
The Fund may purchase securities that have been privately placed but that
are eligible for purchase and sale under rule 144A under the Securities and
Exchange Act of 1933. At March 31, 1998, there were no such securities in the
Funds' portfolio.
E. OFF BALANCE SHEET RISKS
The Funds' investments in foreign securities may entail risks due to
the potential for political and economic instability in the countries where
the issuers of these securities are located. In addition, foreign exchange
fluctuations could affect the value of positions held. These risks are
generally intensified in emerging markets. It is the adviser's policy to
continuously monitor its exposure to these risks.
22
