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<PAGE>
HANSBERGER INSTITUTIONAL SERIES
International Fund
Emerging Markets Fund
Semi-Annual Report
June 30, 1997
<PAGE>
We are pleased to present the Semi-Annual Report for the Funds of Hansberger
Institutional Series listed below. Please contact Hansberger Institutional
Series at 1-800-414-6927 with any questions regarding these Financial
Statements.
<TABLE>
<CAPTION>
Table of Contents
<S> <C>
Letter to Shareholders................................ 1
Portfolio of Investments:
International Fund............................... 2
Emerging Markets Fund ........................... 9
Statements of Assets and Liabilities.................. 14
Statements of Operations ............................. 15
Statements of Changes in Net Assets .................. 16
Financial Highlights.................................. 18
Notes to Financial Statements ........................ 20
</TABLE>
This Semi-Annual report contains certain investment return information. It
should be noted that past performance is not indicative of future results and
the investment return and principal value of an investment will fluctuate so
that an investor's shares, when redeemed, may be worth either more or less than
their original cost.
This report has been prepared for shareholders and may be distributed to others
only if preceded or accompanied by a current prospectus.
<PAGE>
Hansberger Institutional Series
International Fund
Emerging Markets Fund
- --------------------------------------------------------------------------------
August 15, 1997
Dear Fellow Shareholder:
The International Fund and the Emerging Markets Fund (the "Funds") are being
well received by investors. The rapid growth in assets, since inception at the
end of last year, is a positive trend because it has helped us to construct
well-diversified portfolios. Although these efforts continue, we believe we are
now beyond the initial challenges of starting-up these funds. We also anticipate
eventually launching the All Countries Fund and the Foreign Small Cap Fund
depending upon expressed investor interest.
The first six months of 1997 has generally been a good period for global
equities markets, particularly the emerging markets. Only a few markets,
including for example, Malaysia, Philippines, Thailand and the Czech Republic,
have had negative returns. The Funds have subsequently been beneficiaries of
this trend and we remain, as always, optimistic about the future despite the
continued risk of market corrections in the near-term. If corrections do occur,
however, we would generally view them as investment buying opportunities given
our value-based investment style and longer-term investment time horizon.
Overall, many global markets, by historical standards, are expensive. There are,
however, some markets in Asia and Eastern Europe, which we believe continue to
offer value and are represented in the Funds. Additionally, as "bottom-up" stock
pickers, we also continue to selectively identify unique undervalued investment
opportunities in many markets that, as a whole, are considered expensive. It is
also evident, given the current composition of our "value" list, that smaller
capitalization investment opportunities are more abundant than larger
capitalization investment opportunities and that emerging market shares are
typically more attractive than developed market shares.
The International Fund and the Emerging Markets Fund are now broadly-based. The
emerging markets are also well-represented in the International Fund. Portfolio
turnover, as expected, remains low in the Funds and we continue to aggressively
invest new contributions with a stated goal of maintaining a low cash weighting.
We remain satisfied with the initial progress of the Funds and are very pleased
with the support we have received from our investors. Looking forward, as the
Funds mature, we will provide detailed performance results and additional
information about the Funds that have not, as yet, been presented. Finally, our
primary goal, as always, is to continue working hard to satisfy your investment
needs.
For the International Fund Team For the Emerging Markets Fund Team
/s/James E. Chaney /s/Thomas L. Hansberger, CFA
James E. Chaney Thomas L. Hansberger, CFA
<PAGE>
Hansberger Institutional Series
Portfolio of Investments as of June 30, 1997 (Unaudited)
International Fund
<TABLE>
<CAPTION>
Value
Shares (Note A1)
------------ ----------------
<S> <C> <C>
Common Stocks (70.7%)
Argentina (1.0%)
(a,c) 165,000 Mirgor S.A. ADR $ 470,250
12,500 Telefonica de Argentina S.A. ADR 432,813
32,500 Transportadora de Gas del Sur S.A. ADR 406,250
----------------
1,309,313
----------------
Australia (2.8%)
634,979 Burns, Philp & Company Ltd. 1,179,741
85,000 Coles Myer Ltd. 442,314
275,000 Gio Australia Holdings Ltd. 851,548
75,000 National Australia Bank Ltd. 1,074,536
---------------
3,548,139
---------------
Brazil (1.3%)
22,000 Aracruz Celulose S.A. ADR 448,250
(a,c) 220,000 Rhodia-Ster S.A. GDR 632,500
3,600 Telebras ADR 546,300
---------------
1,627,050
---------------
Canada (1.1%)
60,000 London Insurance Group Inc. 1,155,893
40,000 Primex Forest Products Ltd. 227,413
---------------
1,383,306
---------------
Chile (0.6%)
32,000 Empresa Nacional Electricidad S.A. ADR 722,000
---------------
China (0.8%)
1,120,000 Harbin Power Equipment Co., Ltd., Class H 247,209
1,250,000 Jingwei Textile Machinery Co., Ltd., Class H 200,070
52,500 Shandong Huaneng Power Co., Ltd. ADR 564,375
----------------
1,011,654
----------------
Colombia (0.4%)
22,000 Banco Ganadero S.A. ADR 577,500
----------------
Czech Republic (2.0%)
(a,c) 39,500 Komercni Banka A.S. GDR 819,625
(a) 20,700 Skoda Plzen A.S. 619,512
(a) 6,300 SPT Telecom A.S. 660,887
(a) 33,614 Zivnobanka-Investicni Fond 439,737
----------------
2,539,761
----------------
Denmark (1.6%)
21,500 Tele Danmark A/S, Class B 1,117,615
16,500 Unidanmark A/S, Class A (Registered) 927,316
----------------
2,044,931
----------------
</TABLE>
The accompanying notes are an integral part of the financial statements.
2
<PAGE>
Hansberger Institutional Series
Portfolio of Investments as of June 30, 1997 (Unaudited)
International Fund (cont.)
<TABLE>
<CAPTION>
Value
Shares (Note A1)
------------ ----------------
<S> <C> <C>
Finland (1.3%)
65,000 Kemira Oy $ 613,639
123,500 Merita Ltd., Class A 411,639
82,000 Metsa-Serla Oy, Class B 668,278
----------------
1,693,556
----------------
France (3.5%)
13,300 AXA-UAP 827,472
5,802 Bail Investissement 781,211
30,500 Banque Nationale de Paris 1,257,443
10,500 Elf Aquitaine S.A. 1,133,164
(a) 17,000 Renault S.A. 430,303
----------------
4,429,593
----------------
Germany (2.1%)
27,000 Bulfinger & Berger Bau AG 1,135,228
11,500 Deutsche Bank AG 675,481
(a) 14,100 Gildemeister AG 829,008
----------------
2,639,717
----------------
Hong Kong (4.9%)
2,500,000 Cafe De Coral Holdings Ltd. 642,159
115,000 Cheung Kong Holdings Ltd. 1,135,557
750,000 Giordano International Ltd. 513,082
210,000 Guoco Group Ltd. 1,105,934
151,355 Jardine Matheson Holdings Ltd. 1,074,620
750,000 Swire Pacific Ltd., Class B 1,137,493
765,000 Tai Cheung Holdings Ltd. 607,276
----------------
6,216,121
----------------
India (0.6%)
(c) 149,000 India Cements Ltd. GDR 484,250
(a,c) 60,000 Indian Aluminum Co. Ltd. GDR 217,500
----------------
701,750
----------------
Indonesia (1.3%)
(b) 750,000 PT Indah Kiat Pulp & Paper Corp. (Foreign) 439,453
(a,b) 675,000 PT Indah Kiat Pulp & Paper Corp., Rights expiring 8/20/97 117,958
(b) 375,000 PT Indosat (Foreign) 1,121,762
------------------
1,679,173
------------------
Israel (0.5%)
33,500 Koor Industries Ltd. ADR 590,438
------------------
Italy (2.4%)
(a) 220,000 Ansaldo Transporti S.p.A. 222,628
500,000 Banca Commerciale Italiana 1,035,477
75,000 Burgo (Cartiere) S.p.A. 416,103
125,000 Edison S.p.A. 621,801
</TABLE>
The accompanying notes are an integral part of the financial statements.
3
<PAGE>
Hansberger Institutional Series
Portfolio of Investments as of June 30, 1997 (Unaudited)
International Fund (cont.)
<TABLE>
<CAPTION>
Value
Shares (Note A1)
---------- ------------------
<S> <C> <C> <C>
375,000 Telecom Italia S.p.A. $ 742,410
------------------
3,038,419
------------------
Japan (4.0%)
29,000 Aoyama Trading Co., Ltd. 931,524
15,000 Ataka Construction & Engineering 97,543
39,000 Chudenko Corp. 1,045,084
105,000 Dowa Fire & Marine Insurance Co. 521,494
205,000 Marubeni Corp. 930,476
100,000 Nippon Fire & Marine Insurance Co. 539,432
38,000 Yamanouchi Pharmaceutical Co., Ltd. 1,021,603
------------------
5,087,156
------------------
Korea (2.7%)
184,997 Cho Hung Bank Co. Ltd. 1,229,147
14,000 Hyundai Motor Co. Ltd. 419,369
65,000 Korea Fund, Inc. 958,750
(a) 55,000 Korean Investment Fund, Inc. 460,625
11,000 Shinsegae Department Store Co. 433,559
------------------
3,501,450
------------------
Mexico (0.6%)
1,455,000 Grupo Herdez S.A., Series B 752,080
------------------
Netherlands (2.7%)
4,700 Akzo Nobel N.V. 644,624
11,400 Eriks Holdings N.V. 787,590
16,753 Koninklijke Ahrend Groep N.V. 1,131,786
25,290 Koninklijke Pakhoed N.V. 892,300
------------------
3,456,300
------------------
New Zealand (1.7%)
360,000 Air New Zealand Ltd., Class B 1,100,387
1,130,000 Brierley Investments Ltd. 1,105,277
------------------
2,205,664
------------------
Norway (1.3%)
29,000 Fokus Banken ASA 245,390
37,000 Sparebanken NOR 1,100,845
22,170 Unitor ASA 317,704
------------------
1,663,939
------------------
Pakistan (0.6%)
(a,c) 10,000 Pakistan Telecom Ltd. GDR 785,987
------------------
Peru (0.4%)
23,000 Southern Peru Copper Corp. 448,500
------------------
Philippines (0.5%)
(a) 1,300,000 Pilipino Telephone Corp. 653,056
------------------
</TABLE>
The accompanying notes are an integral part of the financial statements.
4
<PAGE>
Hansberger Institutional Series
Portfolio of Investments as of June 30, 1997 (Unaudited)
International Fund (cont.)
<TABLE>
<CAPTION>
Value
Shares (Note A1)
---------- ------------------
<S> <C> <C> <C>
Poland (0.4%)
10,500 E. Wedel S.A. $ 565,495
------------------
Portugal (1.1%)
69,500 Banco Totta & Acores S.A., Class B 1,161,691
7,300 Electricidade de Portugal S.A. ADR 263,712
------------------
1,425,403
------------------
Russia (3.0%)
7,000 Lukoil Co. ADR 552,410
(a) 10,500 Oskolcement 598,500
(a) 265,000 Rostelecom 1,033,500
9,800 Surgutneftegaz ADR 524,300
(a) 3,085,000 Unified Energy Systems 1,113,685
------------------
3,822,395
------------------
Singapore (0.8%)
100,000 City Developments Ltd. 979,226
------------------
Slovakia (0.8%)
(a) 14,500 Nafta Gbely A.S. 474,194
(a) 30,000 VSZ A.S. 561,898
------------------
1,036,092
------------------
Slovenia (0.8%)
(c) 29,500 SKB Banka GDR 1,017,750
------------------
South Africa (0.7%)
200,000 Murray & Roberts Holdings Ltd. 469,473
47,000 Sappi Ltd. 424,730
------------------
894,203
------------------
Spain (4.3%)
1,600 Banco de Andalucia S.A. 271,647
14,000 Banco Pastor S.A. 1,055,348
25,000 Cortefiel S.A. 1,091,681
20,500 Gas y Electridad S.A. 1,101,222
24,000 Repsol S.A. 1,015,416
31,500 Telefonica de Espana S.A. 911,307
------------------
5,446,621
------------------
Sweden (1.1%)
83,500 ABB AB, B Shares 1,166,126
8,100 Volvo AB, B Shares 216,815
------------------
1,382,941
------------------
Switzerland (2.6%)
(a) 470 Baloise Holdings (Registered) 1,120,274
</TABLE>
The accompanying notes are an integral part of the financial statements.
5
<PAGE>
Hansberger Institutional Series
Portfolio of Investments as of June 30, 1997 (Unaudited)
International Fund (cont.)
<TABLE>
<CAPTION>
Value
Shares (Note A1)
---------- ------------------
<S> <C> <C> <C>
645 Julius Baer Holding AG, Class B $ 987,380
770 Novartis AG, (Registered) 1,230,945
------------------
3,338,599
------------------
Thailand (2.4%)
100,000 Bangkok Bank Public Co. Ltd. 12/31/98 SEC 492,200
70,000 Bangkok Bank Public Co. Ltd. (Foreign) 480,988
175,000 Land & House Public Co., Ltd. (Foreign) 364,794
200,000 Phata Thanakit Public Co. Ltd. (Foreign) 247,057
53,000 Siam Cement Public Co. Ltd. (Foreign) 916,580
(a) 37 Thai International Fund IDR 605,875
------------------
3,107,494
------------------
United Kingdom (9.5%)
315,000 APV plc 597,942
300,000 BICC plc 884,175
140,000 British Telecommunications plc 1,039,696
323,000 BTR plc 1,105,244
470,000 Coats Viyella plc 986,080
346,000 Hillsdown Holdings plc 976,539
390,000 House of Fraser plc 1,035,783
70,000 Hyder plc 944,119
185,000 J Sainsbury plc 1,121,287
70,196 National Westminster Bank plc 943,840
80,000 Powergen plc 951,112
75,000 Reckit & Colman plc 1,120,204
(a) 79,500 Waste Management International plc 364,035
------------------
12,070,056
------------------
Venezuela (0.5%)
135,000 Siderurgica Venezolana Sivensa ADR 698,733
------------------
Total Common Stocks (Cost $84,663,178) 90,091,561
------------------
Preferred Stocks (2.5%)
Austria (0.7%)
13,000 Bank Austria AG 417,662
(a,c) 16,816 Bank Austria AG (New) 515,649
------------------
933,311
------------------
Mexico (1.0%)
25,500 Telephonos de Mexico 11.25%, PRIDES 1,230,375
------------------
Netherlands (0.4%)
(a) 10,000 Ballast Nedam N.V. 502,218
------------------
Russia (0.4%)
(a,c) 105 Norlisk Nickel RDC 564,375
------------------
Total Preferred Stocks (Cost $3,153,033) 3,230,279
------------------
</TABLE>
The accompanying notes are an integral part of the financial statements.
6
<PAGE>
Hansberger Institutional Series
Portfolio of Investments as of June 30, 1997 (Unaudited)
International Fund (cont.)
<TABLE>
<CAPTION>
Face Value
Amount (Note A1)
(000)
---------- ------------------
<S> <C> <C>
Convertible Bonds (0.9%)
Hong Kong (0.9%)
$ 883,000 Jardine Strategic Holdings Ltd. 7.50%, 5/07/49
(Cost $1,077,986) $ 1,086,090
------------------
<CAPTION>
Government Obligations (7.0%) Discount
U.S. Treasury Bills (7.0%) Rate
------------------
<S> <C> <C> <C>
116,000 7/17/97 4.83% 115,751
70,000 7/24/97 5.10% 69,772
7,164,000 7/31/97 4.97% 7,133,617
162,000 8/07/97 5.00% 161,162
30,000 8/21/97 5.05% 29,785
30,000 8/28/97 5.04% 29,755
441,000 9/04/97 5.07% 436,947
688,000 9/18/97 5.09% 680,315
283,000 9/25/97 5.04% 279,579
----------------------
Total Government Obligations (Cost $8,937,168) 8,936,683
----------------------
Total Investments (81.1%) (Cost $97,831,365) $103,344,613
Other Assets and Liabilities (net) (18.9%) 24,029,904
----------------------
Net Assets (100.0%) $127,374,517
======================
</TABLE>
(a)- Non-income producing securities.
(b)- Fair valued securities - See Note A1.
(c)- 144A Security - Certain conditions for public sale may exist.
ADR - American Depositary Receipt.
GDR - Global Depositary Receipt.
IDR - International Depositary Receipt.
RDC - Russian Depositary Certificate - The Russian Depositary
Certificates represent fractional undivided interests in Sub-Trusts
of the Russian Depositary Trust, a unit established under the laws
of the Cayman Islands. Each Sub-Trust has a specific number of
shares of stock of a designated company organized under the laws of
the Russian Federation. The accompanying portfolio designates the
shares of stock in each Sub-Trust whose values are based upon the
closing prices of the underlying shares in such Sub-Trust.
SEC - Share Entitlement Certificate.
The accompanying notes are an integral part of the financial statements.
7
<PAGE>
Hansberger Institutional Series
Portfolio of Investments as of June 30, 1997 (Unaudited)
International Fund (cont.)
Sector Diversification
- ----------------------
<TABLE>
<CAPTION>
Percent
of Net
Sector Assets Value
- ------ ----------------- -------------------------
<S> <C> <C>
Capital Equipment 6.1 % $7,723,253
Consumer Goods 7.0 8,899,176
Diversified Operations 6.1 7,747,393
Energy 8.1 10,387,761
Finance 24.1 30,662,644
Materials 6.4 8,206,703
Services 16.3 20,781,000
Government Obligations 7.0 8,936,683
----------------- -------------------------
Total Investments 81.1 % $103,344,613
Other Assets and Liabilities (Net) 18.9 24,029,904
----------------- -------------------------
Net Assets 100.0 % $127,374,517
================= =========================
</TABLE>
The accompanying notes are an integral part of the financial statements.
8
<PAGE>
Hansberger Institutional Series
Portfolio of Investments as of June 30, 1997 (Unaudited)
Emerging Markets Fund
<TABLE>
<CAPTION>
Value
Shares (Note A1)
-------------- ----------------
<S> <C> <C>
Common Stocks (97.9%)
Argentina (4.4%)
(a,c) 78,000 Mirgor S.A. ADR $ 222,300
4,500 Telecom Argentina S.A. ADR 236,250
6,000 Telefonica de Argentina S.A. ADR 207,750
15,500 Transportadora de Gas del Sur S.A. ADR 193,750
----------------
860,050
----------------
Brazil (6.5%)
11,000 Aracruz Celulose S.A. ADR 224,125
602,000 Brasmotor S. A. PN 134,200
7,000 Cia Vale do Rio Doce ADR 156,054
9,000 Petrobras S.A. ADR 246,620
(a,c) 60,000 Rhodia-Ster S.A. GDR 172,500
1,000 Telebras ADR 151,750
(c) 16,500 Usiminas ADR 184,594
----------------
1,269,843
----------------
Chile (1.1%)
9,500 Empresa Nacional Electricidad S.A. ADR 214,344
----------------
China (5.8%)
1,264,000 Harbin Power Equipment Co., Ltd., Class H 278,993
1,190,000 Jingwei Textile Machinery Co., Ltd., Class H 190,466
528,000 Northeast Electrical Transmission & Transformation
Machinery Manufacturing Co., Ltd., Class H 87,917
(a) 500,000 Shanghai Haixing Shipping Co., Class H 279,130
12,000 Shandong Huaneng Power Co., Ltd. ADR 129,000
734,000 Shanghai Petrochemical Co. Ltd., Class H 176,221
----------------
1,141,727
----------------
Colombia (1.0%)
7,500 Banco Ganadero S.A. ADR 195,937
----------------
Croatia (0.9%)
(a,c) 11,500 Pliva GDR 177,141
----------------
Czech Republic (4.2%)
(a) 7,000 CKD Praha Holdings A.S. 190,491
(a,c) 5,500 Komercni Banka A.S. GDR 114,125
(a) 2,500 Metrostav A.S. 161,982
(a) 5,500 Skoda Plzen A.S. 164,605
(a) 1,900 SPT Telecom A.S. 199,315
----------------
830,518
----------------
Ecuador (0.7%)
(a,c) 700 La Cemento Nacional GDR 145,600
----------------
Greece (1.0%)
8,300 Hellenic Telecommunication Organization S.A. 194,963
----------------
</TABLE>
The accompanying notes are an integral part of the financial statements.
9
<PAGE>
Hansberger Institutional Series
Portfolio of Investments as of June 30, 1997 (Unaudited)
Emerging Markets Fund (cont.)
<TABLE>
<CAPTION>
Value
Shares (Note A1)
-------------- ----------------
<S> <C> <C>
Hong Kong (5.6%)
570,000 Cafe De Coral Holdings Ltd. $ 146,412
81,000 Cathay Pacific Airways 167,807
7,000 Cheung Kong Holdings Ltd. 69,121
137,778 Dairy Farm International Holdings Ltd. 103,334
246,000 Giordano International Ltd. 168,291
36,000 Guoco Group Ltd. 189,589
95,000 Hopewell Holdings Ltd. 60,085
14,864 Jardine Matheson Holdings Ltd. 105,534
25,500 Jardine Strategic Holdings Ltd. 96,390
----------------
1,106,563
----------------
Hungary (1.6%)
(a) 3,000 Borsodchem Rt. 120,090
(a) 1,300 EGIS Rt. 82,971
2,200 Graboplast Rt. 103,399
----------------
306,460
----------------
India (6.9%)
(c) 126,600 India Cements Ltd. GDR 411,450
(a,c) 28,000 Indian Aluminum Co. Ltd. GDR 101,500
(a,c) 14,000 Larsen & Toubro Ltd. GDR 241,500
(c) 46,600 Raymond Ltd. GDR 201,545
(c) 5,000 Reliance Industries GDR 115,000
(a,c) 217,000 Videocon International Ltd. GDR 271,250
----------------
1,342,245
----------------
Indonesia (4.7%)
(b) 170,000 PT Indah Kiat Pulp & Paper Corp. (Foreign) 99,609
(a,b) 153,000 PT Indah Kiat Pulp & Paper Corp., Rights expiring 8/20/97 26,737
(a,b) 80,000 PT Indorama Synthetics (Foreign) 72,368
(b) 4,600 PT Indosat ADR 137,713
(b) 194,000 PT Kalbe Farma (Foreign) 259,252
(b) 128,000 PT Pabrik Kertas Tjiwi Kimia (Foreign) 148,684
(b) 70,000 PT Semen Cibinong (Foreign) 183,491
----------------
927,854
----------------
Korea (4.7%)
(c) 28,000 Cho Hung Bank Co., Ltd. GDR 203,000
10,000 Kookmin Bank PPN 5/99 150,500
2,700 Pohang Iron & Steel Co., Ltd. PPN 5/99 207,360
(a,c) 3,457 Samsung Electronics GDR 200,506
8,000 Ssangyong Oil Refining Co., Ltd. 162,162
----------------
923,528
----------------
Mexico (5.9%)
25,700 Cemex S.A. de C.V. 110,161
123,000 Cifra S.A. de C.V., Class B, ADR 225,754
(a) 24,000 Elamex S.A. de C.V. 234,000
250,000 Grupo Herdez S.A., Series B 129,224
3,500 Telefonos de Mexico S.A., Class L, ADR 167,125
61,000 Transportacion Martima Mexicana S.A. de C.V.,
Class A, ADR 297,375
----------------
1,163,639
----------------
</TABLE>
The accompanying notes are an integral part of the financial statements.
10
<PAGE>
Hansberger Institutional Series
Portfolio of Investments as of June 30, 1997 (Unaudited)
Emerging Markets Fund (cont.)
<TABLE>
<CAPTION>
Value
Shares (Note A1)
-------------- ----------------
<S> <C> <C>
Pakistan (0.4%)
(a,c) 1,000 Pakistan Telecom Ltd. GDR $ 78,551
----------------
Peru (1.2%)
11,900 Southern Peru Copper Corp. 232,050
----------------
Philippines (3.6%)
(a) 1,070,000 MRC Allied Industries, Inc. 123,730
(a) 15,200 Philippine National Bank 103,154
(a) 484,000 Pilipino Telephone Corp. 243,138
(a) 316,000 Primetown Property Group, Inc. 107,825
1,375,000 Republic Glass Holdings Corp. 125,114
----------------
702,961
----------------
Poland (3.5%)
(a) 4,000 Agros Holdings S.A., Class C 106,496
8,500 Bank Rozwoju Eksportu S.A. 178,457
1,300 E. Wedel S.A. 70,014
(a) 25,000 Mostostal-Export S.A. 79,112
44,000 Polifarb Wroclaw S.A. 164,673
(a) 5,200 Zaclady Metali Lekkich Kety 79,112
----------------
677,864
----------------
Portugal (2.3%)
17,000 Banco Totta & Acores S.A., Class B 284,155
4,600 Electricidade de Portugal S.A. ADR 166,175
----------------
450,330
----------------
Russia (13.5%)
200,000 Irkutskenergo 68,000
(a,c) 1 Irkutskenergo RDC 69,000
(a) 5,000 Izhorskie Zavody 295,000
2,400 Lukoil Holding Co. ADR 189,398
2,000 Mosenergo ADR 84,000
(a) 30,000 Nizhnovsvyazinform 148,500
(a) 37,000 Norilsk Nickel 349,650
(a) 2,000 Oskolcement 114,000
(a) 24,000 Pervouralsky Novotrubny Factory 148,800
(a) 35,000 Primorsk Sea Shipping 143,500
(a) 30,000 Rostelecom 117,000
(a) 1,800 Samarasvyazinform Preferred 151,200
(a) 4,300 Seversky Tube Works ADR 126,850
6,500 Surgutneftegaz ADR 347,750
(a) 2,800 Tatneft ADR 301,723
----------------
2,654,371
----------------
Singapore (1.0%)
20,000 City Developments Ltd. 195,845
----------------
Slovakia (3.2%)
(a) 7,300 Drotovna A.S. 78,130
(a) 5,500 Nafta Gbely A.S. 179,867
(a) 5,000 Plastika Nitra A.S. 77,298
</TABLE>
The accompanying notes are an integral part of the financial statements.
11
<PAGE>
Hansberger Institutional Series
Portfolio of Investments as of June 30, 1997 (Unaudited)
Emerging Markets Fund (cont.)
<TABLE>
<CAPTION>
Value
Shares (Note A1)
-------------- ----------------
<S> <C> <C>
(a) 6,700 Slovnaft A.S. $ 165,329
(a) 6,500 VSZ A.S. 121,745
----------------
622,369
----------------
Slovenia (1.5%)
(c) 4,500 SKB Banka GDR 155,250
16,000 Sappi Ltd. 144,589
----------------
299,839
----------------
Thailand (6.1%)
34,000 Bangkok Bank Public Co. Ltd. 12/31/98 SEC 167,348
120,000 Land & House Public Co., Ltd. (Foreign) 250,145
100,000 Pharta Thanakit Public Co. Ltd. (Foreign) 123,528
(a) 442,200 Sahaviriya Steel Industries Public Co. Ltd. 76,815
(a,b) 84,800 Sahaviriya Steel Industries Public Co. Ltd. (Foreign) 14,731
11,000 Siam Cement Public Public Co. Ltd. (Foreign) 190,234
51,000 Siam Commercial Bank Public Co. Ltd. 12/31/98 SEC 197,676
55,000 Thai Farmers Bank Public Co., Ltd. 12/31/98 SEC 176,935
----------------
1,197,412
----------------
Turkey (3.3%)
1,500,000 Cisma Cimento Sanayi Ve Ticaret A.S. 201,986
2,250,000 Kartonsan Karton Sanayi Ve Ticaret A.S. 162,852
(a) 550,000 Netas Telekomunik A.S. 151,826
1,640,000 Tat Conserve Sanayii A.S. 121,461
----------------
638,125
----------------
Venezuela (3.3%)
20,000 Mavesa, S.A. ADR 202,500
84,000 Siderurgica Venezolana Sivensa ADR 434,767
----------------
637,267
----------------
Total Common Stocks (Cost $17,759,087) 19,187,396
----------------
</TABLE>
<TABLE>
<CAPTION>
Face
Amount Discount
(000) Rate
-------------- ----------------------
<S> <C> <C>
Government Obligations (2.0%)
U.S. Treasury Bills (2.0%)
$ 7,000 7/10/97 5.06% 6,991
1,000 7/24/97 4.95% 997
90,000 8/21/97 5.05% 89,354
69,000 9/11/97 5.05% 68,297
232,000 9/25/97 5.04% 229,196
----------------
Total Government Obligations (Cost $394,953) 394,835
----------------
Total Investments (99.9%) (Cost $18,154,040) 19,582,231
Other Assets and Liabilities (net) (0.1%) 18,612
----------------
Net Assets (100.0%) $19,600,843
================
</TABLE>
(a)- Non-income producing securities.
(b)- Fair valued securities - See Note A1.
(c)- 144A Security - Certain conditions for public sale may exist.
The accompanying notes are an integral part of the financial statements.
12
<PAGE>
Hansberger Institutional Series
Portfolio of Investments as of June 30, 1997 (Unaudited)
Emerging Markets Fund (cont.)
ADR - American Depositary Receipt.
GDR - Global Depositary Receipt.
RDC - Russian Depositary Certificate - The Russian Depositary
Certificates represent fractional undivided interests in Sub-Trusts
of the Russian Depositary Trust, a unit established under the laws
of the Cayman Islands. Each Sub-Trust has a specific number of
shares of stock of a designated company organized under the laws of
the Russian Federation. The accompanying portfolio designates the
shares of stock in each Sub-Trust whose values are based upon the
closing prices of the underlying shares in such Sub-Trust.
SEC - Share Entitlement Certificate.
Sector Diversification
- ----------------------
<TABLE>
<CAPTION>
Percent
of Net
Sector Assets Value
----------------- -------------------------
<S> <C> <C>
Capital Equipment 12.3 % $2,419,586
Consumer Goods 7.1 1,392,029
Diversified Operations 3.4 660,858
Energy 12.8 2,517,118
Finance 14.6 2,856,818
Materials 29.5 5,776,130
Services 18.2 3,564,857
Government Obligations 2.0 394,835
----------------- -------------------------
Total Investments 99.9 % $19,582,231
Other Assets and Liabilities (Net) 0.1 18,612
----------------- -------------------------
Net Assets 100.0 % $19,600,843
================= =========================
</TABLE>
The accompanying notes are an integral part of the financial statements.
13
<PAGE>
Hansberger Institutional Series
Statements of Assets and Liabilities
June 30,1997 (Unaudited)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Emerging
International Markets
Fund Fund
------------------- -------------------
<S> <C> <C>
Assets:
Investments, at Cost - see accompanying portfolios $ 97,831,365 $ 18,154,040
=================== ===================
Investments, at Value (Note A1) $ 103,344,613 $ 19,582,231
Cash 1,173,630 248,735
Foreign Currency, at Value (Cost $1,259) 1,171 -
Dividends Receivable 317,304 56,884
Interest Receivable 3,442 -
Receivable for Fund Shares Sold 24,875,000 -
Receivable for Investments Sold 764,160 -
Receivable from Investment Adviser (Note B) 25,560 26,539
Prepaid Expenses 2,317 2,329
Deferred Organization Costs (Note A4) 45,389 45,414
Other Assets 8,687 8,501
------------------- -------------------
Total Assets 130,561,273 19,970,633
------------------- -------------------
Liabilities:
Payable for Investments Purchased 3,059,017 312,860
Administration Fees Payable 10,770 2,960
Custodian Fees Payable 76,881 36,223
Professional Fees Payable 9,990 9,990
Accrued Expenses and Other Liabilities 30,098 7,757
------------------- -------------------
Total Liabilities 3,186,756 369,790
------------------- -------------------
Net Assets $ 127,374,517 $ 19,600,843
=================== ===================
Net Assets consist of:
Paid-in Capital $ 121,005,131 $ 18,011,535
Undistributed Net Investment Income 807,560 130,279
Accumulated Net Realized Gain 36,383 29,034
Unrealized Appreciation of Investments and Foreign
Currency Translations 5,525,443 1,429,995
------------------- -------------------
Net Assets $ 127,374,517 $ 19,600,843
=================== ===================
Shares of Beneficial Interest Outstanding
(unlimited authorization, no par value) 11,340,472 1,727,457
Net Asset Value Per Share $11.23 $11.35
======= ======
</TABLE>
The accompanying notes are an integral part of these financial statements.
14
<PAGE>
Hansberger Institutional Series
Statements of Operations
Six Months Ended June 30, 1997 (Unaudited)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Emerging
International Markets
Fund Fund
---------------- ----------------
<S> <C> <C>
Investment Income:
Dividends $ 841,569 $ 155,522
Interest 273,060 68,087
Less: Foreign Taxes Withheld (101,481) (3,719)
---------------- ----------------
Total Income 1,013,148 219,890
---------------- ----------------
Expenses:
Investment Advisory Fees (Note B):
Basic Fees 151,038 60,383
Less: Fees Waived (57,570) (30,632)
---------------- ----------------
Investment Advisory Fees - Net 93,468 29,751
Administration Fees (Note C) 33,147 15,097
Custodian Fees (Note D) 76,831 36,163
Professional Fees 17,505 17,505
Registration and Filing Fees 30,977 8,793
Shareholder Reports 4,749 4,750
Trustees' Fees and Expenses (Note E) 2,876 2,863
Amortization of Organization Costs (Note A4) 4,744 4,719
Miscellaneous Expenses 1,430 1,430
---------------- ----------------
Total Expenses 265,727 121,071
Fees Reimbursed by Investment Adviser (Note B) (59,126) (30,447)
---------------- ----------------
Net Expenses 206,601 90,624
---------------- ----------------
Net Investment Income 806,547 129,266
---------------- ----------------
Net Realized Gain (Loss):
Security Transactions 220,975 35,411
Foreign Currency Transactions (184,592) (6,377)
---------------- ----------------
Net Realized Gain 36,383 29,034
---------------- ----------------
Change in Unrealized Appreciation:
Investments 5,513,248 1,428,191
Foreign Currency Translations 12,195 1,804
---------------- ----------------
Change in Unrealized Appreciation 5,525,443 1,429,995
---------------- ----------------
Net Realized Gain and Change in
Unrealized Appreciation 5,561,826 1,459,029
---------------- ----------------
Net Increase in Net Assets Resulting from Operations $ 6,368,373 $ 1,588,295
================ ================
</TABLE>
The accompanying notes are an integral part of these financial statements.
15
<PAGE>
Hansberger Institutional Series
International Fund
Statement of Changes in Net Assets
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Six Months
Ended Period
June 30,1997 Ended
(Unaudited) December 31,1996*
------------------ ------------------
<S> <C> <C>
Increase in Net Assets
Operations:
Net Investment Income $ 806,547 $ 412
Net Realized Gain 36,383 -
Change in Unrealized Appreciation 5,525,443 -
--------------- ---------------
Net Increase in Net Assets Resulting from Operations 6,368,373 412
--------------- ---------------
Capital Share Transactions (Note G):
Proceeds from Shares Sold 116,072,755 4,244,847
Transaction Fees 637,554 -
--------------- ---------------
Increase in Net Assets from Capital Share Transactions 116,710,309 4,244,847
--------------- ---------------
Net Increase in Net Assets 123,078,682 4,245,259
Net Assets:
Beginning of Period 4,295,835 50,576
--------------- ---------------
End of Period $ 127,374,517 $ 4,295,835
=============== ===============
Undistributed Net Investment Income Included in End
of Period Net Assets $ 807,560 1,013
=============== ===============
</TABLE>
- --------------------------------------------------------
* The International Fund commenced operations on December 30, 1996.
The accompanying notes are an integral part of these financial statements.
16
<PAGE>
Hansberger Institutional Series
Emerging Markets Fund
Statement of Changes in Net Assets
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Six Months
Ended Period
June 30,1997 Ended
(Unaudited) December 31,1996*
--------------------- -------------------
<S> <C> <C>
Increase in Net Assets
Operations:
Net Investment Income $ 129,266 $ 412
Net Realized Gain 29,034 -
Change in Unrealized Appreciation 1,429,995 -
--------------------- -------------------
Net Increase in Net Assets Resulting from Operations 1,588,295 412
--------------------- -------------------
Capital Share Transactions (Note G):
Proceeds from Shares Sold 12,757,469 5,181,548
Transaction Fees 22,543 -
--------------------- -------------------
Increase in Net Assets from Capital Share Transactions 12,780,012 5,181,548
--------------------- -------------------
Net Increase in Net Assets 14,368,307 5,181,960
Net Assets:
Beginning of Period 5,232,536 50,576
--------------------- -------------------
End of Period $ 19,600,843 $ 5,232,536
===================== ===================
Undistributed Net Investment Income Included in End
of Period Net Assets $ 130,279 $ 1,013
===================== ===================
</TABLE>
- --------------------------------------
* The Emerging Markets Fund commenced operations on December 30, 1996.
The accompanying notes are an integral part of these financial statements.
17
<PAGE>
Hansberger Institutional Series
International Fund
Financial Highlights
For a Share Outstanding Throughout Each Period
- -------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Six Months
Ended Period
June 30, 1997 Ended
(Unaudited) December 31, 1996*
----------------------- ----------------------------
<S> <C> <C>
Net Asset Value, Beginning of Period $10.12 $10.12
----------------------- ----------------------------
Income from Investment Operations
Net Investment Income 0.07 --
Net Realized and Unrealized Gain on Investments 1.04 --
----------------------- ----------------------------
Total from Investment Operations 1.11 --
----------------------- ----------------------------
Net Asset Value, End of Period $11.23 $10.12
======================= ============================
Total Return 10.97% 0.00%
======================= ============================
Ratios and Supplemental Data: +
Net Assets, End of Period (in Thousands) $127,375 $4,296
Ratio of Expenses to Average Net Assets (1) 1.00%** 1.00%**
Ratio of Net Investment Income to Average Net Assets (1) 3.89%** 3.50%**
Portfolio Turnover Rate 6% 0%
Average Commission Rate $0.0116 $0.0000
- -------------------------------------------------------------------------------------------
(1) Effect of voluntary expense limitation during the period:
Ratio of Expenses to Average Net Assets 1.56%** 77.13%**
Ratio of Net Investment Income (Loss) to Average Net Assets 3.33%** (72.63)%**
</TABLE>
* The International Fund commenced operations on December 30, 1996.
** Annualized.
+ The per share amounts for the two day period ended December 31, 1996
are based on average outstanding shares.
The accompanying notes are an integral part of these financial statements.
18
<PAGE>
Hansberger Institutional Series
Emerging Markets Fund
Financial Highlights
For a Share Outstanding Throughout Each Period
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Six Months
Ended Period
June 30, 1997 Ended
(Unaudited) December 31, 1996*
----------------- ---------------------
<S> <C> <C>
Net Asset Value, Beginning of Period $10.12 $10.12
----------------- ---------------------
Income from Investment Operations
Net Investment Income 0.07 --
Net Realized and Unrealized Gain on Investments 1.16 --
----------------- ---------------------
Total from Investment Operations 1.23 --
----------------- ---------------------
Net Asset Value, End of Period $11.35 $10.12
================= =====================
Total Return 12.15% 0.00%
================= =====================
Ratios and Supplemental Data: +
Net Assets, End of Period (in Thousands) $19,601 $5,233
Ratio of Expenses to Average Net Assets (1) 1.50%** 1.50%**
Ratio of Net Investment Income to Average Net Assets (1) 2.14%** 2.87%**
Portfolio Turnover Rate 2% 0%
Average Commission Rate $0.0048 $0.0000
- ---------------------------------------------------------------------
(1) Effect of voluntary expense limitation during the period:
Ratio of Expenses to Average Net Assets 2.51%** 65.28%**
Ratio of Net Investment (Loss) to Average Net Assets 1.13%** (60.91)%**
</TABLE>
* The Emerging Markets Fund commenced operations on December 30, 1996.
** Annualized.
+ The per share amounts for the two day period ended December 31, 1996 are
based on average outstanding shares.
The accompanying notes are an integral part of these financial statements.
19
<PAGE>
HANSBERGER INSTITUTIONAL SERIES
NOTES TO FINANCIAL STATEMENTS
June 30, 1997 (Unaudited)
Hansberger Institutional Series (the "Trust"), a Massachusetts business trust,
is registered under the Investment Company Act of 1940, as amended, as an
open-end management investment company. As of June 30, 1997, the Trust was
comprised of 2 separate active, diversified portfolios (individually referred to
as a "Fund", collectively as the "Funds"). The International Fund and the
Emerging Markets Fund, each a Fund of the Trust, commenced operations on
December 30, 1996.
The International Fund seeks to achieve long-term capital growth through a
flexible policy of investing in stocks and debt obligations of companies and
governments outside the United States including developing countries. The
Emerging Markets Fund seeks to achieve long-term capital growth through a policy
of investing primarily in publicly traded equity securities of companies located
in emerging markets.
A. Accounting Policies: The following significant accounting policies are in
conformity with generally accepted accounting principles for investment
companies. Such policies are consistently followed by the Trust in the
preparation of the financial statements. Generally accepted accounting
principles may require management to make estimates and assumptions that affect
the reported amounts and disclosures in the financial statements. Actual results
could differ from those estimates.
1. Security Valuation: Equity securities listed on a U.S. exchange are
valued at the latest quoted sales price on the valuation date. Securities
listed on a foreign exchange are valued at their closing price. Unlisted
securities and listed securities not traded on the valuation date for which
market quotations are readily available are valued at a price within a range
not exceeding the current asked price nor less than the current bid price.
Bonds and other fixed income securities may be valued according to the
broadest and most representative market. In addition, bonds and other fixed
income securities may be valued on the basis of prices provided by a pricing
service which are based primarily on institutional size trading in similar
groups of securities. Securities not priced in this manner are valued at the
most recently quoted bid price, or, when securities exchange valuations are
used, at the latest quoted sale price on the day of valuation. If there is
no such reported sale, the latest quoted bid price will be used. Debt
securities purchased with remaining maturities of 60 days or less are valued
at amortized cost, if it approximates market value. All other securities and
assets for which market values are not readily available, including
restricted securities and unlisted foreign securities, are valued at fair
value as determined in good faith by the Board of Trustees, although the
actual calculations may be done by others.
The Funds' investments in emerging markets or developing markets may subject
the Funds to a greater degree of risk than in a developed market. Risks
associated with these developing markets, attributable to political, social
or economic factors, may affect the price of the Funds' investments and
income generated by these investments, as well as the Funds' ability to
repatriate such amounts.
2. Foreign Currency Translation: The accounting records of the Funds are
maintained in U.S. dollars. Investment securities and other assets and
liabilities denominated in a foreign currency are translated into U.S.
dollars at the foreign currency exchange rates applicable on that day.
Purchases and sales of securities, income receipts and expense payments are
translated into U.S. dollars at the prevailing exchange rate on the
respective dates of the transactions. Net realized gains and losses on
foreign currency transactions represent net gains and losses from sales and
maturities of forward currency contracts, disposition of foreign currencies,
currency gains and losses realized between the trade and settlement dates on
securities transactions and the difference between the amount of net
investment income accrued and the U.S. dollar amount actually received. The
effect of changes in foreign currency exchange rates on investments in
securities are not segregated in the Statement of Operations from the
effects of changes in market prices of those securities, but are included
with the net realized and unrealized gain or loss on investment in
securities.
20
<PAGE>
HANSBERGER INSTITUTIONAL SERIES
NOTES TO FINANCIAL STATEMENTS
June 30, 1997 (Unaudited)
3. Taxes: It is each Fund's intention to qualify as a regulated investment
company and distribute all of its taxable income. Accordingly, no provision
for Federal income taxes is required in the financial statements. The Funds
may be subject to taxes imposed by countries in which it invests. Such taxes
are generally based on income and/or capital gains earned or repatriated.
Taxes are accrued and applied to net investment income, net realized capital
gains and net unrealized appreciation as the income and/or capital gains are
earned.
4. Organizational Costs: The organizational costs of the Funds are being
amortized on a straight-line basis over a period of five years beginning
with each Fund's commencement of operations. Hansberger Global Investors has
agreed that in the event any of its initial shares in a Fund are redeemed,
the proceeds on redemption will be reduced by the pro-rata portion of any
unamortized organizational costs in the same proportion as the number of
shares redeemed bears to the initial shares held at time of redemption.
5. Other: Security transactions are accounted for on the date the securities
are purchased or sold. Realized gains and losses on the sale of investment
securities are determined on the specific identified cost basis. Dividend
income is recorded on the ex-date (except that certain dividends from
foreign securities where the ex-dividend date may have passed are recorded
as soon as the Fund is informed of the ex-dividend date in the exercise of
reasonable diligence) net of applicable withholding taxes where recovery of
such taxes is not reasonably assured. Interest income is recognized on the
accrual basis except where collection is in doubt. Discounts and premiums on
securities purchased are amortized according to the effective yield method
over their respective lives. Most expenses of the Trust can be directly
attributed to a particular Fund. Expenses which cannot be directly
attributed are apportioned among the Funds based upon relative net assets.
Distributions for the Funds are recorded on the ex-date. Income and capital
gain distributions are determined in accordance with U.S. Federal income tax
regulations which may differ from generally accepted accounting principles.
These differences are primarily due to differing book and tax treatment for
organizational expenses.
Permanent book and tax basis differences relating to shareholder
distributions may result in reclassifications among undistributed net
investment income, accumulated net realized gain and paid in capital.
Permanent book and tax basis differences, if any, are not included in ending
undistributed net investment income for the purpose of calculating net
investment income per share in the Financial Highlights.
B. Adviser: Hansberger Global Investors, Inc. (the "Adviser") provides each Fund
with investment advisory services pursuant to an investment advisory agreement
at a monthly fee calculated at the annual rate of 0.75% and 1.00% of average
daily net assets of the International Fund and the Emerging Markets Fund,
respectively. The Adviser has voluntarily agreed to reduce advisory fees payable
to it and to reimburse the Funds, if necessary, if the annual operating
expenses, as defined, expressed as a percentage of average daily net assets,
exceed the maximum ratios of 1.00% for the International Fund and 1.50% for the
Emerging Markets Fund. The Adviser, at its discretion, may revise or discontinue
the voluntary fee waivers and reimbursements at any time.
C. Administrator: Chase Global Funds Services Company (the "Administrator" or
"CGFSC"), a subsidiary of The Chase Manhattan Bank, provides the Trust with
administrative, dividend disbursing and transfer agent services pursuant to an
Administrative Agreement (the "Agreement"). Under the Agreement the Trust pays
the Administrator a monthly fee in proportion to the Funds combined average
daily net assets at the following annual rate: 0.12% of the first $500 million
of average daily net assets, 0.08% for the next $500 million of average daily
net assets, and 0.06% for average daily net assets over $1 billion. Certain
employees of CGFSC are officers of the Fund.
21
<PAGE>
HANSBERGER INSTITUTIONAL SERIES
NOTES TO FINANCIAL STATEMENTS
June 30, 1997 (Unaudited)
D. Custodian: The Chase Manhattan Bank serves as the Trust's custodian in
accordance with a custodian agreement. Custodian fees are computed and payable
monthly based on assets held, investment purchases and sales activity, an
account maintenance fee, plus reimbursement for certain out-of-pocket expenses.
E. Trustee Fees: The Trust pays each Trustee, who is not also an officer or
affiliated person, an annual fee plus travel and other expenses incurred in
attending Board meetings. Trustees who are also officers or affiliated persons
receive no remuneration for their service as Trustees.
Expenses for the period ended June 30, 1997 include legal fees paid to Morgan,
Lewis & Bockius LLP. A partner of that firm is a Trustee to the Trust.
F. Purchases and Sales: For the six months ended June 30, 1997, purchases and
sales of investment securities other than long-term U.S. Government securities
and short-term investments were:
<TABLE>
<CAPTION>
Fund Purchases Sales
- ---- --------- -----
<S> <C> <C>
International Fund $90,827,143 $2,137,720
Emerging Markets Fund 17,893,955 169,846
</TABLE>
There were no purchases or sales of long-term U.S. Government securities during
the six months ended June 30, 1997.
G. Capital Share Transactions: Transactions in fund shares for the periods
indicated below:
<TABLE>
<CAPTION>
International Emerging
------------- --------
Fund Markets Fund
---- ------------
Six Months Period Six Months Period
Ended Ended Ended Ended
6/30/97 12/31/96 6/30/97 12/31/96
------- -------- ------- --------
<S> <C> <C> <C> <C>
Shares sold 10,916,021 424,451 1,210,446 517,011
Shares issued on - - - -
reinvestment of distributions
Shares repurchased - - - -
------------------------------------------- --------------------------------------------
Increase (decrease) 10,916,021 424,451 1,210,446 517,011
Fund shares:
Beginning of period 424,451 0 517,011 0
------------------------------------------- --------------------------------------------
End of period 11,340,472 424,451 1,727,457 517,011
</TABLE>
Effective April 15, 1997, shareholders are charged a transaction fee in
connection with each purchase and redemption of shares of each fund. The
transaction fee is 0.50% for the International Fund and 1.00% for the Emerging
Markets Fund. The transaction fee is not a sales charge and is retained by the
Funds.
22
<PAGE>
HANSBERGER INSTITUTIONAL SERIES
NOTES TO FINANCIAL STATEMENTS
June 30, 1997 (Unaudited)
H. Other: At June 30, 1997, cost, unrealized appreciation, unrealized
(depreciation), and net unrealized appreciation (depreciation) for U.S. Federal
income tax purposes of the investments of the Portfolio were:
<TABLE>
<CAPTION>
Net
Unrealized
Unrealized Unrealized Appreciation
Fund Cost Appreciation (Depreciation) (Depreciation)
- ---- ---- ------------ -------------- --------------
<S> <C> <C> <C> <C>
International Fund $97,831,365 $7,881,305 $(2,368,057) $5,513,248
Emerging Markets Fund 18,154,040 2,729,475 (1,301,284) 1,428,191
</TABLE>
From time to time, certain Funds of the Trust have shareholders that hold a
significant portion of a Fund's outstanding shares. Investment activities of
these shareholders could have a material impact on those Funds.
23
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