<PAGE>
- --------------------------------------------------------------------------------
DFA Investment Dimensions Group Inc.
The Emerging Markets Value Portfolio
Dimensional Emerging Markets Fund Inc.
Annual Report
Year Ended November 30, 1998
-------------------------------------
<PAGE>
DFA INVESTMENT DIMENSIONS GROUP INC.
THE EMERGING MARKETS VALUE PORTFOLIO
AND
DIMENSIONAL EMERGING MARKETS FUND INC.
ANNUAL REPORT
TABLE OF CONTENTS
<TABLE>
<CAPTION>
PAGE
------
<S> <C>
DFA INVESTMENT DIMENSIONS GROUP INC. -- THE EMERGING MARKETS VALUE
PORTFOLIO
Performance Chart................................................... 1
Statement of Assets and Liabilities................................. 2
Statement of Operations............................................. 3
Statement of Changes in Net Assets.................................. 4
Financial Highlights................................................ 5
Notes to Financial Statements....................................... 6-7
Report of Independent Accountants................................... 8
DIMENSIONAL EMERGING MARKETS FUND INC.
Performance Chart................................................... 9
Schedule of Investments............................................. 10-18
Statement of Assets and Liabilities................................. 19
Statement of Operations............................................. 20
Statements of Changes in Net Assets................................. 21
Financial Highlights................................................ 22
Notes to Financial Statements....................................... 23-24
Report of Independent Accountants................................... 25
</TABLE>
This report is submitted for the information of the Fund's shareholders. It is
not authorized for distribution to prospective investors unless preceded or
accompanied by an effective prospectus.
i
<PAGE>
DIMENSIONAL INVESTMENT GROUP INC.
PERFORMANCE CHART
- --------------------------------------------------------------------------------
EMERGING MARKETS VALUE PORTFOLIO VS.
MSCI EMERGING MARKETS FREE INDEX
APRIL 1998-NOVEMBER 1998
EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC
<TABLE>
<CAPTION>
EMERGING MARKETS VALUE
DATE PORTFOLIO MSCI EMERGING MARKETS FREE INDEX
<S> <C> <C>
$9,950 $10,000
Apr-98 $9,592 $9,872
May-98 $8,447 $8,489
Jun-98 $7,681 $7,581
Jul-98 $8,009 $7,795
Aug-98 $5,930 $5,512
Sep-98 $5,900 $5,846
Oct-98 $7,164 $6,454
Nov-98 $8,329 $6,984
</TABLE>
<TABLE>
<CAPTION>
ANNUALIZED
TOTAL RETURN ONE
(%) YEAR
- ---------------------------
<S> <C>
-16.71
</TABLE>
- - THE PORTFOLIO INVESTS IN THE DIMENSIONAL EMERGING MARKETS FUND INC. WHICH IN
TURN PROVIDES ACCESS TO NON-U.S. LARGE COMPANIES IN "EMERGING MARKET"
COUNTRIES INCLUDING ARGENTINA, BRAZIL, CHILE, GREECE, INDONESIA, ISRAEL,
MALAYSIA, MEXICO, PHILIPPINES, PORTUGAL, SOUTH KOREA, THAILAND, AND TURKEY,
SPECIFICALLY THOSE DEEMED TO BE VALUE STOCKS.
- - THIS WAS A NEW PORTFOLIO AND ITS YEAR-TO-DATE RETURNS IN FISCAL 1998 REFLECT
THE PERFORMANCE OF ITS STRATEGY.
Past performance is not predictive of future performance.
- --------------------------------------------------------------------------------
1
<PAGE>
DFA INVESTMENT DIMENSIONS GROUP INC.
THE EMERGING MARKETS VALUE PORTFOLIO
STATEMENT OF ASSETS AND LIABILITIES
NOVEMBER 30, 1998
(AMOUNTS IN THOUSANDS, EXCEPT SHARE AMOUNTS)
<TABLE>
<S> <C>
ASSETS:
Investment in the Dimensional Emerging Markets Fund Inc.
(742,557 Shares, Cost $9,675++)..................................................... $ 10,945
Receivable for Fund Shares Sold....................................................... 18
Prepaid Expenses and Other Assets..................................................... 32
---------
Total Assets...................................................................... 10,995
---------
LIABILITIES:
Payable for Investment Securities Purchased........................................... 18
Accrued Expenses and Other Liabilities................................................ 8
---------
Total Liabilities................................................................. 26
---------
NET ASSETS............................................................................ $ 10,969
---------
---------
SHARES OUTSTANDING, $.01 PAR VALUE
(Authorized 100,000,000)............................................................ 1,310,733
---------
---------
NET ASSET VALUE....................................................................... $ 8.37
---------
---------
PUBLIC OFFERING PRICE PER SHARE....................................................... $ 8.41
---------
---------
NET ASSETS CONSIST OF:
Paid-In Capital....................................................................... $ 9,671
Undistributed Net Investment Income................................................... 83
Accumulated Net Realized Loss of Investment Securities................................ (55)
Unrealized Appreciation of Investment Securities...................................... 1,270
---------
Total Net Assets.................................................................. $ 10,969
---------
---------
</TABLE>
- --------------
++ The cost for federal income tax purposes is $9,726.
See accompanying Notes to Financial Statements.
2
<PAGE>
DFA INVESTMENT DIMENSIONS GROUP INC.
THE EMERGING MARKETS VALUE PORTFOLIO
STATEMENT OF OPERATIONS
FOR THE PERIOD APRIL 2, 1998
(COMMENCEMENT OF OPERATIONS)
TO NOVEMBER 30, 1998
(AMOUNTS IN THOUSANDS)
<TABLE>
<S> <C>
INVESTMENT INCOME
Income Distributions Received from Dimensional Emerging Markets Fund Inc. ........... $ 117
---------
EXPENSES
Accounting & Transfer Agent Fees..................................................... 13
Administrative Fee................................................................... 10
Legal Fees........................................................................... --
Audit Fees........................................................................... 1
Filing Fees.......................................................................... 2
Shareholders' Reports................................................................ 2
Directors Fees and Expenses.......................................................... --
Organizational Fees.................................................................. 5
Other Expenses....................................................................... 1
---------
Total Expenses................................................................... 34
---------
NET INVESTMENT INCOME................................................................ 83
---------
NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS
Net Realized Loss on Investment Securities............................................... (55)
Change in Unrealized Appreciation (Depreciation) of Investment Securities................ 1,270
---------
NET INCOME ON INVESTMENT SECURITIES.................................................. 1,215
---------
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS..................................... $ 1,298
---------
---------
</TABLE>
See accompanying Notes to Financial Statements.
3
<PAGE>
DFA INVESTMENT DIMENSIONS GROUP INC.
THE EMERGING MARKETS VALUE PORTFOLIO
STATEMENT OF CHANGES IN NET ASSETS
FOR THE PERIOD APRIL 2, 1998
(COMMENCEMENT OF OPERATIONS)
TO NOVEMBER 30, 1998
(AMOUNTS IN THOUSANDS)
<TABLE>
<S> <C>
INCREASE (DECREASE) IN NET ASSETS
Operations:
Net Investment Income............................................................... $ 83
Net Realized Loss on Investment Securities.......................................... (55)
Change in Unrealized Appreciation (Depreciation) of Investment Securities........... 1,270
---------
Net Increase in Net Assets Resulting from Operations............................ 1,298
---------
Distributions From:
Net Investment Income............................................................... --
Net Realized Gains.................................................................. --
---------
Total Distributions............................................................. --
---------
Capital Share Transactions (1):
Shares Issued....................................................................... 10,040
Shares Issued in Lieu of Cash Distributions......................................... --
Shares Redeemed..................................................................... (369)
---------
Net Increase from Capital Share Transactions.................................... 9,671
---------
Total Increase.................................................................. 10,969
NET ASSETS
Beginning of Period................................................................. --
---------
End of Period....................................................................... $ 10,969
---------
---------
(1) SHARES ISSUED AND REDEEMED:
Shares Issued....................................................................... 1,364
Shares Issued in Lieu of Cash Distributions......................................... --
Shares Redeemed..................................................................... (53)
---------
1,311
---------
---------
</TABLE>
See accompanying Notes to Financial Statements.
4
<PAGE>
DFA INVESTMENT DIMENSIONS GROUP INC.
THE EMERGING MARKETS VALUE PORTFOLIO
FINANCIAL HIGHLIGHTS
FOR THE PERIOD APRIL 2, 1998
(COMMENCEMENT OF OPERATIONS)
TO NOVEMBER 30, 1998
(FOR A SHARE OUTSTANDING THROUGHOUT THE PERIOD)
<TABLE>
<S> <C>
Net Asset Value, Beginning of Period..................................................... $ 10.00
---------
INCOME FROM INVESTMENT OPERATIONS
Net Investment Income.................................................................. 0.06
Net Losses on Securities (Realized and Unrealized)..................................... (1.69)
---------
Total from Investment Operations....................................................... (1.63)
---------
LESS DISTRIBUTIONS
Net Investment Income.................................................................. --
Net Realized Gains..................................................................... --
---------
Total Distributions.................................................................... --
---------
Net Asset Value, End of Period........................................................... $ 8.37
---------
---------
Total Return............................................................................. (16.30)%#
Net Assets, End of Period (thousands).................................................... $ 10,969
Ratio of Expenses to Average Net Assets (1).............................................. 1.96%*(a)
Ratio of Net Investment Income to Average Net Assets..................................... 3.24%*(a)
Portfolio Turnover Rate.................................................................. N/A
Portfolio Turnover Rate of Master Fund Series............................................ 34.84%(b)
</TABLE>
- --------------
* Annualized
# Non-annualized
(1) Represents the combined ratio for the Portfolio and its respective pro-rata
share of its Master Fund.
(a) Because of commencement of operations and related preliminary transaction
costs, these ratios are not necessarily indicative of future ratios.
(b) Calculated for the year ended November 30, 1998.
N/A Refer to the respective Master Fund.
See accompanying Notes to Financial Statements.
5
<PAGE>
THE DFA INVESTMENT DIMENSIONS GROUP INC.
NOTES TO FINANCIAL STATEMENTS
A. ORGANIZATION:
DFA Investment Dimensions Group Inc. (the "Group") is an open-end management
investment company whose shares are offered, without a sales charge, generally
to institutional investors and clients of registered investment advisors. The
Group offers thirty portfolios, one of which, the Emerging Markets Value
Portfolio (the "Portfolio") is included in this report. Of the remaining
twenty-nine portfolios, twenty-eight are presented within two separate reports
and the remaining portfolio has not yet commenced operations.
The Portfolio invests all of its assets in the Dimensional Emerging Markets
Fund Inc. (the "Fund"). At November 30, 1998, the Portfolio owned 1% of the
outstanding shares of the Fund. The financial statements of the Fund are
included elsewhere in this report and should be read in conjunction with the
financial statements of the Portfolio.
B. SIGNIFICANT 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 Group in preparation of its financial
statements. The preparation of financial statements in accordance with 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: The shares of the Fund held by the Portfolio are
valued at its respective daily net asset value.
2. FEDERAL INCOME TAXES: It is the Portfolio's intention to qualify as a
regulated investment company and distribute all of its taxable income.
Accordingly, no provision for Federal taxes is required in the financial
statements.
3. OTHER: Security transactions are accounted for on the date the
securities are purchased or sold. Costs used in determining realized gains and
losses on the sale of investment securities are those of specific securities
sold. Dividend income and distributions to shareholders are recorded on the
ex-dividend date. Expenses directly attributable to the Portfolio or to the Fund
are directly charged. Common expenses are allocated using methods determined by
the Board of Directors.
C. INVESTMENT ADVISOR:
Dimensional Fund Advisors Inc. ("DFA" or the "Advisor") provides
administrative services to the Portfolio, including supervision of services
provided by others, providing information to the shareholders and the Board of
Directors, and other administrative services. The Advisor provides investment
advisory services to the Fund. For the period ended November 30, 1998, the
Portfolio's administrative fees were computed daily and paid monthly to the
Advisor based on an effective annual rate of 0.40% of 1% of average daily net
assets.
Certain officers of the Portfolio are also officers, directors and
shareholders of the Advisor.
D. INVESTMENT TRANSACTIONS:
At November 30, 1998, gross unrealized appreciation and depreciation for
federal income tax purposes of investment securities was as follows (amounts in
thousands):
<TABLE>
<S> <C>
Gross Unrealized Appreciation.......................... $ 1,219
Gross Unrealized Depreciation.......................... --
---------
Net.................................................... $ 1,219
---------
---------
</TABLE>
6
<PAGE>
At November 30, 1998, the Portfolio had a capital loss carryover for federal
income tax purposes of approximately $3,898 which expires on November 30, 2006.
E. LINE OF CREDIT:
The Group, together with other DFA-advised portfolios, has entered into a
$50 million unsecured line of credit with its domestic custodian bank. Each
portfolio is permitted to borrow, subject to its investment limitations, up to a
maximum of $50 million. Borrowings under the line are charged interest at the
current overnight federal funds rate plus a variable rate determined at the date
of borrowing. Each portfolio is individually, and not jointly liable for its
particular advances under the line. There is no commitment fee on the unused
portion of the line of credit. There were no borrowings under the line of credit
by the Portfolio during the period ended November 30, 1998.
F. REIMBURSEMENT FEE:
Shares of the Portfolio are sold at a public offering price which is equal
to the Portfolio's current net asset value plus a reimbursement fee of 0.50% of
such net asset value. Reimbursement fees are recorded as an addition to paid in
capital and are used to defray costs associated with investing proceeds from the
sale of shares.
7
<PAGE>
REPORT OF INDEPENDENT ACCOUNTANTS
TO THE SHAREHOLDERS AND BOARD OF DIRECTORS OF
DFA INVESTMENT DIMENSIONS GROUP INC.:
In our opinion, the accompanying statement of assets and liabilities of DFA
Investment Dimensions Group Inc., Emerging Markets Value Portfolio, and the
related statements of operations, and of changes in net assets and the financial
highlights present fairly, in all material respects, the financial position of
DFA Investment Dimensions Group Inc., Emerging Markets Value Portfolio at
November 30, 1998, the results of its operations, the changes in its net assets
and the financial highlights for each of the periods presented, in conformity
with generally accepted accounting principles. These financial statements and
financial highlights (hereafter referred to as "financial statements") are the
responsibility of the Fund's management; our responsibility is to express an
opinion on these financial statements based on our audits. We conducted our
audits of these financial statements in accordance with generally accepted
auditing standards which require that we plan and perform the audit to obtain
reasonable assurance about whether the financial statements are free of material
misstatement. An audit includes examining, on a test basis, evidence supporting
the amounts and disclosures in the financial statements, assessing the
accounting principles used and significant estimates made by management, and
evaluating the overall financial statement presentation. We believe that our
audits, which included confirmation of securities owned at November 30, 1998 by
correspondence with the custodian and brokers, provide a reasonable basis for
the opinion expressed above.
PricewaterhouseCoopers LLP
2400 Eleven Penn Center
Philadelphia, Pennsylvania
January 15, 1999
8
<PAGE>
DIMENSIONAL INVESTMENT GROUP INC.
PERFORMANCE CHART
- --------------------------------------------------------------------------------
DIMENSIONAL EMERGING MARKETS FUND INC. VS.
MSCI EMERGING MARKETS FREE INDEX
MARCH 1993-NOVEMBER 1998
EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC
<TABLE>
<CAPTION>
DIMENSIONAL EMERGING MARKETS FUND
DATE INC. MSCI EMERGING MARKETS FREE INDEX
<S> <C> <C>
$9,950 $10,000
Mar-93 $10,151 $10,313
Apr-93 $10,774 $10,493
May-93 $10,985 $10,751
Jun-93 $11,628 $11,044
Jul-93 $11,494 $11,306
Aug-93 $12,496 $12,246
Sep-93 $12,943 $12,681
Oct-93 $13,789 $13,811
Nov-93 $14,597 $14,415
Dec-93 $16,529 $16,784
Jan-94 $17,362 $17,080
Feb-94 $16,308 $16,766
Mar-94 $14,671 $15,223
Apr-94 $14,359 $14,885
May-94 $14,998 $15,361
Jun-94 $14,249 $14,911
Jul-94 $15,500 $15,830
Aug-94 $17,218 $17,775
Sep-94 $17,518 $17,960
Oct-94 $17,565 $17,612
Nov-94 $16,650 $16,677
Dec-94 $15,391 $15,326
Jan-95 $14,008 $13,686
Feb-95 $13,533 $13,322
Mar-95 $13,939 $13,374
Apr-95 $14,813 $13,949
May-95 $16,238 $14,653
Jun-95 $16,069 $14,667
Jul-95 $16,480 $14,973
Aug-95 $15,913 $14,600
Sep-95 $15,582 $14,511
Oct-95 $15,079 $13,942
Nov-95 $14,692 $13,682
Dec-95 $15,193 $14,262
Jan-96 $16,601 $15,262
Feb-96 $16,153 $14,994
Mar-96 $16,230 $15,083
Apr-96 $16,769 $15,632
May-96 $16,885 $15,524
Jun-96 $17,059 $15,588
Jul-96 $15,685 $14,495
Aug-96 $16,197 $14,844
Sep-96 $16,571 $14,953
Oct-96 $16,177 $14,543
Nov-96 $16,321 $14,768
Dec-96 $16,500 $14,817
Jan-97 $18,459 $15,814
Feb-97 $18,915 $16,480
Mar-97 $18,391 $16,007
Apr-97 $18,198 $15,980
May-97 $19,470 $16,394
Jun-97 $20,256 $17,236
Jul-97 $20,641 $17,459
Aug-97 $18,486 $15,217
Sep-97 $19,590 $15,614
Oct-97 $17,147 $13,039
Nov-97 $16,672 $12,556
Dec-97 $17,317 $12,829
Jan-98 $16,252 $11,813
Feb-98 $17,508 $13,040
Mar-98 $18,317 $13,561
Apr-98 $18,083 $13,388
May-98 $16,048 $11,512
Jun-98 $14,663 $10,281
Jul-98 $15,238 $10,570
Aug-98 $11,266 $7,475
Sep-98 $11,223 $7,928
Oct-98 $13,629 $8,753
Nov-98 $15,868 $9,471
</TABLE>
<TABLE>
<CAPTION>
ANNUALIZED
TOTAL RETURN ONE FIVE FROM
(%) YEAR YEARS MARCH 1993
- --------------------------------------------------
<S> <C> <C> <C>
-5.30 1.58 8.36
</TABLE>
- - THE FUND PROVIDES ACCESS TO NON-U.S. LARGE COMPANIES IN "EMERGING MARKET"
COUNTRIES INCLUDING ARGENTINA, BRAZIL, CHILE, GREECE, INDONESIA, ISRAEL,
MALAYSIA, MEXICO, PHILIPPINES, PORTUGAL, SOUTH KOREA, THAILAND, AND TURKEY,
SPECIFICALLY THOSE DEEMED TO BE VALUE STOCKS.
- - THE FUND'S RETURNS IN FISCAL 1998 REFLECTED THE PERFORMANCE OF AN
EQUALLY-WEIGHTED EMERGING MARKETS COUNTRY PORTFOLIO.
Past performance is not predictive of future performance.
- --------------------------------------------------------------------------------
9
<PAGE>
DIMENSIONAL EMERGING MARKETS FUND INC.
SCHEDULE OF INVESTMENTS
NOVEMBER 30, 1998
<TABLE>
<CAPTION>
SHARES VALUE+
------------ ------------
<S> <C> <C>
THAILAND -- (12.9%)
COMMON STOCKS -- (12.9%)
*American Standard Sanitaryware (Thailand) Public Co.
Ltd. (Foreign)...................................... 4,150 $ 25,291
*Aromatics (Thailand) Public Co., Ltd. (Foreign)...... 5,334,000 664,903
Ayudhya Insurance Public Co., Ltd. (Foreign).......... 13,000 49,695
*Bangkok Land Public Co., Ltd. (Foreign).............. 256,400 38,353
*Bangkok Rubber Public Co., Ltd. (Foreign)............ 1,161,200 289,496
*Bangkok Steel Industry Public Co., Ltd. (Foreign).... 84,000 5,119
*Bank of Asia Public Co., Ltd. (Foreign).............. 188,100 153,710
Bank of Ayudhya Public Co., Ltd. (Foreign)............ 6,198,000 1,974,431
*Banpu Public Co., Ltd. (Foreign)..................... 50,000 94,183
*Big C Supercenter Public Co., Ltd. (Foreign)......... 1,274,800 282,504
*Capetronic International (Thailand) Public Co.,
Ltd................................................. 3,200,000 460,942
*Capital Nomura Securities Public Co., Ltd.
(Foreign)........................................... 510,000 967,728
*Central Pattana Public Co., Ltd. (Foreign)........... 395,000 175,069
*Ch Karnchang Public Co., Ltd. (Foreign).............. 384,800 586,260
*Charoen Pokphand Feedmill Public Co., Ltd.
(Foreign)........................................... 290,700 378,473
*Christiani and Nielson (Thai) Public Co., Ltd.
(Foreign)........................................... 56,779 1,258
*First Bangkok City Bank Public Co., Ltd. (Foreign)... 460,200 36,969
International Cosmetics Public Co., Ltd. (Foreign).... 275,500 725,000
*Italian-Thai Development Public Co., Ltd.
(Foreign)........................................... 1,541,100 3,096,005
*Jasmine International Public Co., Ltd. (Foreign)..... 2,273,400 629,750
Kang Yong Electric Public Co., Ltd. (Foreign)......... 91,500 88,078
*Krung Thai Bank Public Co., Ltd. (Foreign)........... 7,929,200 4,501,729
*Laguna Resorts & Hotels Public, Ltd. Foreign......... 521,100 214,719
*Land and House Public Co., Ltd. (Foreign)............ 322,177 238,732
*MK Real Estate Development Public Co., Ltd.
(Foreign)........................................... 23,625 3,076
*Modernform Group Public Co., Ltd. (Foreign).......... 46,000 10,831
*Nakornthon Bank Public Co., Ltd. (Foreign)........... 838,600 127,765
*National Finance and Securities Public Co., Ltd.
(Foreign)........................................... 1,472,000 489,307
*Nawarat Patanakarn Public Co., Ltd. (Foreign)........ 6,400 709
<CAPTION>
SHARES VALUE+
------------ ------------
<S> <C> <C>
*New Imperial Hotel Public Co., Ltd. (Foreign)........ 7,800 $ 6,158
*Padaeng Industry Public Co., Ltd (Foreign)........... 1,600,800 350,313
*Phoenix Pulp and Paper Public Co., Ltd. (Foreign).... 171,400 86,650
*Premier Enterprises Public Co., Ltd. (Foreign)....... 32,000 355
*Quality Houses Public Co., Ltd. (Foreign)............ 847,000 201,778
*Saha Pathana Inter-Holding Public Co., Ltd.
(Foreign)........................................... 203,600 104,338
Saha Pathanapibul Public Co., Ltd. (Foreign).......... 24,200 34,356
*Saha-Union Public Co. Ltd. (Foreign)................. 276,000 135,706
*Sahaviriya Steel Industries Public Co., Ltd.
(Foreign)........................................... 3,075,300 230,008
*Samart Corp. Public Co., Ltd. (Foreign).............. 455,200 69,352
Shangri-la Hotel Public Co., Ltd. (Foreign)........... 281,600 216,465
*Shinawatra Computer and Communications Public Co.,
Ltd. (Foreign)...................................... 33,000 139,861
*Shinawatra Satellite Public Co., Ltd. (Foreign)...... 1,448,000 721,994
*Siam City Bank Public Co., Ltd....................... 31,910 177
*Siam City Cement Public Co., Ltd. (Foreign).......... 116,121 321,665
*Siam Commercial Bank Public Co., Ltd. (Foreign)...... 1,546,333 845,985
*Siam Pulp & Paper Co., Ltd. (Foreign)................ 994,300 929,574
*Sino-Thai Engineering and Construction Public Co.,
Ltd. (Foreign)...................................... 21,200 4,816
*Srithai Superware Public Co., Ltd. (Foreign)......... 21,000 5,526
*TPI Polene Public Co., Ltd. (Foreign)................ 271,162 65,349
*Tanayong Public Co., Ltd. (Foreign).................. 1,521,800 282,439
*Thai Danu Bank Public Co., Ltd. (Foreign)............ 129,000 83,975
*Thai Farmers Bank Public Co., Ltd.................... 920,000 1,656,509
*Thai German Ceramic Industry Public Co., Ltd.
(Foreign)........................................... 58,000 16,067
*Thai Military Bank Public Co., Ltd. (Foreign)........ 5,257,000 1,310,609
*Thai Packaging and Printing Public Co., Ltd.
(Foreign)........................................... 29,500 1,471
*Thai Petrochemical Industry Public Co., Ltd.
(Foreign)........................................... 1,621,700 341,410
*Thai Plastic and Chemicals Public Co., Ltd.
(Foreign)........................................... 29,000 44,183
Thai Rung Union Carbide Public Co., Ltd. (Foreign).... 320,700 210,987
*Thai Telephone & Telecommunication Public Co., Ltd.
(Foreign)........................................... 882,000 153,922
*Thai Wah Public Co., Ltd. (Foreign).................. 21,000 3,199
*Tuntex (Thailand) Public Co., Ltd. (Foreign)......... 502,000 173,823
</TABLE>
10
<PAGE>
DIMENSIONAL EMERGING MARKETS FUND INC.
CONTINUED
<TABLE>
<CAPTION>
SHARES VALUE+
------------ ------------
<S> <C> <C>
*United Communication Industry Public Co., Ltd.
(Foreign)........................................... 145,700 $ 94,846
*Vinythai Public Co., Ltd. (Foreign).................. 5,147,300 541,821
------------
TOTAL COMMON STOCKS
(Cost $24,525,396)................................... 25,695,772
------------
INVESTMENT IN CURRENCY -- (0.0%)
Thailand Baht (Cost $16).............................. 20
------------
RIGHTS/WARRANTS -- (0.0%)%
*Siam Commercial Bank Public Co., Ltd. (Foreign)
Warrants open expiration
(Cost $0)........................................... 333 0
------------
TOTAL -- THAILAND
(Cost $24,525,412)................................... 25,695,792
------------
SOUTH KOREA -- (11.3%)
COMMON STOCKS -- (11.3%)
*A-Nam Industrial Co., Ltd............................ 31,100 97,344
*Asia Banking Corp. Seoul, Korea...................... 10,980 41,241
Asia Cement Manufacturing Co., Ltd.................... 5,730 38,169
*Asia Motors Co., Inc................................. 10,428 8,411
BYC Co., Ltd.......................................... 810 27,953
*Bank of Che Ju....................................... 2,250 8,397
*Bank of Pusan........................................ 50,610 162,472
*Boo Kook Securities Co., Ltd......................... 18,295 110,269
*Boram Bank Co., Ltd.................................. 52,408 76,130
*Boram Securities Co., Ltd............................ 21,640 87,012
*Byuck San Engineering and Construction Co., Ltd...... 3,360 6,108
*Cheil Industrial, Inc................................ 32,821 99,569
*Cheil Jedang Corp.................................... 21,903 650,410
Chon Bang Co., Ltd.................................... 3,760 49,188
*Choongnam Spinning Co., Ltd.......................... 11,910 22,367
Chosun Brewery Co., Ltd............................... 15,320 112,134
*Chung Chong Bank Co., Ltd............................ 35,060 16,883
*Daegu Bank Co., Ltd.................................. 148,101 363,122
*Daehan Synthetic Fiber Co., Ltd...................... 2,520 98,090
*Daelim Industrial Co., Ltd........................... 57,460 180,312
*Daewoo Corp.......................................... 218,760 562,701
*Daewoo Electronic Components Co., Ltd................ 11,310 29,047
*Daewoo Electronics Co., Ltd.......................... 85,420 233,431
*Daewoo Precision Industries, Ltd..................... 14,010 49,080
*Daewoo Securities Co., Ltd........................... 65,210 523,355
*Daewoo Telecom Co., Ltd.............................. 50,950 195,867
*Daeyu Securities Co., Ltd............................ 11,540 64,831
*Daishin Securities Co., Ltd.......................... 44,980 252,697
*Dong Sung Co., Ltd................................... 12,880 5,789
*Dong-Ah Construction Industrial Co., Ltd............. 58,790 100,972
*Dong-Ah Securities Co., Ltd.......................... 6,720 30,202
Dongbu Steel Co., Ltd................................. 17,310 73,491
Dong-Il Corp.......................................... 4,205 42,185
*Dongkuk Steel Mill Co., Ltd.......................... 49,830 255,949
*Dongwon Industries Co., Ltd.......................... 9,740 91,068
Dongwon Securities Co., Ltd........................... 55,720 438,247
*Doosan Construction & Engineering Co., Ltd........... 9,402 23,316
*Haitai Confectionery Co., Ltd........................ 13,270 22,418
SHARES VALUE+
------------ ------------
Han Il Cement Manufacturing Co., Ltd.................. 11,825 $ 176,521
*Han Kook Titanium Industry Co., Ltd.................. 10,080 10,719
*Han Yang Securities Co., Ltd......................... 9,030 31,525
Hana Bank............................................. 62,560 346,942
*Hanil Securities Co., Ltd............................ 22,230 87,867
*Han-Il Synthetic Fiber Industrial Co., Ltd........... 29,000 15,943
*Hanjin Engineering and Construction Co., Ltd......... 24,760 52,660
*Hanjin Shipping Co., Ltd............................. 22,070 131,428
Hankook Cosmetics Co., Ltd............................ 3,000 26,364
*Hanshin Construction................................. 754 1,725
*Hansol Chemical Co., Ltd............................. 7,540 37,276
*Hansol Paper Co., Ltd................................ 34,539 264,171
*Hanwha Chemical Corp................................. 120,431 353,754
*Hanwha Securities Co., Ltd........................... 8,490 35,432
*Hyosung T & C Co., Ltd............................... 16,410 110,629
*Hyundai Cement Co., Ltd.............................. 2,770 16,473
*Hyundai Corp......................................... 19,190 83,167
*Hyundai Engineering & Construction Co., Ltd.......... 102,823 544,648
*Hyundai International Merchant Bank.................. 39,407 170,785
*Hyundai Motor Co., Ltd............................... 65,393 876,455
*Hyundai Motor Service Co., Ltd....................... 30,050 188,355
*Hyundai Pipe Co., Ltd................................ 19,650 82,006
*Hyundai Precision Industry Co., Ltd.................. 60,850 284,715
*Hyundai Securities Co., Ltd.......................... 39,980 291,989
*Il Yang Pharmaceutical Co., Ltd...................... 4,600 29,276
*Inchon Iron & Steel Co., Ltd......................... 48,601 202,829
*Jinro, Ltd........................................... 9,213 17,746
*KLB Securities Co.................................... 9,460 4,555
*Kangwon Bank Co., Ltd................................ 7,379 17,648
*Keang Nam Enterprises Co., Ltd....................... 10,987 22,750
*Keum Kang Development Industry Co., Ltd.............. 18,010 131,678
*Keumkang Co., Ltd.................................... 10,800 159,486
*Kia Precision Works Co., Ltd......................... 2,550 5,157
*Kohap Co., Ltd....................................... 35,550 44,794
*Kohap, Inc........................................... 4,240 3,267
*Kolon Industries, Inc................................ 32,870 200,491
Kolon International Corp.............................. 14,798 31,472
Kookmin Bank.......................................... 78,850 370,203
*Koram Bank, Ltd...................................... 77,200 304,835
*Korea Chemical Co., Ltd.............................. 7,590 194,928
*Korea Electronics Co., Ltd........................... 5,170 43,152
*Korea Exchange Bank.................................. 351,250 1,141,703
Korea Express Co., Ltd................................ 22,170 72,061
*Korea First Bank Inc., Ltd........................... 106,260 483,543
*Korea First Bank Securities.......................... 26,370 116,400
*Korea Industrial Leasing Co., Ltd.................... 6,810 15,577
*Korea International Merchant Bank.................... 17,394 138,063
*Korea Iron & Steel Co., Ltd.......................... 10,440 31,421
Korea Komho Petrochemical............................. 47,300 120,338
*Korea Long Term Credit Bank.......................... 111,640 254,460
*Korea Merchant Banking Co............................ 7,256 41,638
*Korea Tungsten Mining Co............................. 21,910 17,760
*Korean Air........................................... 119,000 563,483
*Korean French Banking Corp........................... 13,000 77,103
*Kuk Dong Engineering & Construction Co., Ltd......... 7,305 4,045
</TABLE>
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<TABLE>
<CAPTION>
SHARES VALUE+
------------ ------------
<S> <C> <C>
*Kumho Construction & Engineering Co., Ltd............ 65,630 $ 117,460
*Kumho Tire Co., Ltd.................................. 21,810 70,191
*Kwangju Bank......................................... 53,508 118,096
*Kyong Nam Bank....................................... 60,550 146,758
*Kyungki Bank, Ltd.................................... 59,240 17,591
*Kyungnam Wool Textile Co., Ltd....................... 4,172 3,332
*Kyungwon-Century Co., Ltd............................ 5,740 26,673
*LG Cable & Machinery, Ltd............................ 44,330 226,987
*LG Construction, Ltd................................. 38,450 138,864
*LG Industrial Systems, Ltd........................... 38,460 137,974
*LG International Corp................................ 34,920 78,472
*LG Merchant Banking Corp............................. 80,940 289,071
*LG Metals Corp....................................... 16,630 47,781
*LG Securities Co., Ltd............................... 73,860 541,205
*Mando Machinery Corp................................. 3,768 27,005
*Namkwang Engineering & Construction Co., Ltd......... 2,370 2,853
Orient Co., Ltd....................................... 560 5,888
Oriental Chemical Industries Co., Ltd................. 22,110 230,682
*Orion Electric Co., Ltd.............................. 23,658 96,075
*Pang Rim Spinning.................................... 2,330 23,749
*Peeres Cosmetics..................................... 1,060 2,765
*Poong San Corp....................................... 25,130 87,733
*SK Corp., Ltd........................................ 132,800 1,310,947
STC Corp.............................................. 4,950 15,533
*Saehan Industries, Inc............................... 15,090 67,820
*Saehan Media Corp.................................... 9,020 39,671
Sam Yang Corp......................................... 14,580 95,835
*Sambu Construction Co., Ltd.......................... 8,670 50,100
*Samsung Aerospace Industrial Co., Ltd................ 49,910 200,281
*Samsung Corp......................................... 138,510 494,678
*Samsung Fine Chemicals............................... 10,760 104,491
*Samwhan Corp. Co., Ltd............................... 9,100 41,775
*Se Poong Corp........................................ 6,810 11,478
Seah Steel Corp....................................... 8,500 55,257
*Seoul Bank........................................... 14,200 68,379
*Seoul Securities Co., Ltd............................ 13,500 57,965
*Shin Han Securities Co., Ltd......................... 10,420 42,483
*Shin Poong Paper Manufacturing Co., Ltd.............. 2,600 19,594
*Shin Sung Corp....................................... 6,290 11,232
*Shin Wha Engineering & Construction Co., Ltd......... 5,970 11,523
Shin Young Securities Co., Ltd........................ 13,880 153,727
*Shin Young Wacoal, Inc............................... 210 7,247
*Shindongbang Corp.................................... 4,202 46,370
*Shinhan Bank Co., Ltd................................ 245,780 1,084,903
Shinil Engineering Co., Ltd........................... 4,260 12,821
Shinsegae Department Store............................ 21,270 290,201
*Shinsung Tongsang Co., Ltd........................... 9,984 18,550
*Shinwon Corp......................................... 2,830 4,156
*Ssang Bang Wool Co., Ltd............................. 1,950 5,008
Ssangyong Cement Industry Co., Ltd.................... 69,770 174,705
*Ssangyong Corp....................................... 9,023 12,745
*Ssangyong Heavy Industy Co., Ltd..................... 5,700 7,091
*Ssangyong Investment Securities Co., Ltd............. 113,103 390,323
Sunkyong Industries, Ltd.............................. 13,761 59,749
*Sunkyong, Ltd........................................ 69,687 221,477
*Tai Han Electric Wire Co............................. 24,890 97,882
<CAPTION>
SHARES VALUE+
------------ ------------
<S> <C> <C>
Taihan Sugar Industrial Co., Ltd...................... 3,881 $ 47,656
Tong Yang Cement Corp................................. 19,250 64,733
*Tong Yang Merchant Bank.............................. 20,282 71,622
Tong Yang Securities Co., Ltd......................... 22,280 94,055
*Tongkook Corp........................................ 7,400 9,978
Tongyang Confectionery Co............................. 3,300 24,631
*Trigem Computer, Inc................................. 11,780 57,198
Union Steel Manufacturing Co., Ltd.................... 3,000 92,697
*Youngchang Akki Co., Ltd............................. 3,200 21,316
------------
TOTAL COMMON STOCKS
(Cost $27,533,996)................................... 22,540,726
------------
RIGHTS/WARRANTS -- (0.0%)%
*Hyundai Corp. Rights 12/16/98........................ 8,344 2,679
*Hyundai Precision Industry Co., Ltd. Rights
12/09/98............................................ 30,770 0
*Kyongan Bank Ltd. Rights 12/15/98.................... 34,758 0
*Orion Electric Co., Ltd. Rights 12/10/98............. 19,771 0
------------
TOTAL RIGHTS/WARRANTS
(Cost $0)............................................ 2,679
------------
INVESTMENT IN CURRENCY -- (0.0%)
Korean Won (Cost $6).................................. 5
------------
TOTAL -- SOUTH KOREA
(Cost $27,534,002)................................... 22,543,410
------------
PHILIPPINES -- (10.2%)
COMMON STOCKS -- (10.2%)
*Aboitiz Equity Ventures, Inc......................... 5,782,000 246,542
*Alaska Milk Corp..................................... 3,017,000 179,182
*Alsons Consolidated Resources, Inc................... 16,904,000 328,211
*Anglo Philippine Holdings Corp....................... 890,000 9,939
Bacnotan Cement Corp.................................. 1,442,000 223,253
Bacnotan Consolidated Industries, Inc................. 411,885 439,064
*Bankard, Inc......................................... 446,000 14,942
*Belle Corp........................................... 27,251,000 1,763,702
*C & P Homes, Inc..................................... 21,550,000 678,222
*Cebu Holdings, Inc................................... 7,763,250 128,074
*DMCI Holdings, Inc................................... 17,373,000 873,057
*EEI Corporation...................................... 5,249,000 189,177
Far East Bank and Trust Co. (Foreign)................. 776,000 777,968
*Fil-Estate Land, Inc................................. 13,422,000 330,439
*Filinvest Land, Inc.................................. 36,771,000 3,126,460
Guoco Holdings (Philippines), Inc..................... 15,440,000 325,258
*House of Investments, Inc............................ 792,000 18,493
*International Container Terminal Services, Inc....... 3,307,000 293,768
*Kepphil Shipyard, Inc................................ 9,174,684 218,888
*Kuok Philippine Properties, Inc...................... 21,510,000 251,131
*Megaworld Properties & Holdings, Inc................. 24,280,000 462,182
*Metro Pacific Corp................................... 41,560,000 2,088,543
Metropolitan Bank & Trust Co.......................... 57,690 406,318
*Mondragon International Philippines, Inc............. 2,464,000 35,021
*Negros Navigation Co., Inc........................... 955,000 11,634
*PDCP Development Bank................................ 409,000 132,354
*Philippine National Bank............................. 1,103,000 1,441,735
*Philippine Realty & Holdings Corp.................... 21,500,000 180,076
*Philippine Savings Bank.............................. 936,900 463,693
</TABLE>
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SHARES VALUE+
------------ ------------
<S> <C> <C>
*Pryce Properties Corp................................ 1,480,000 $ 28,173
RFM Corp.............................................. 2,574,000 372,380
*Republic Glass Holding Corp.......................... 780,000 14,452
*Robinson's Land Corp. Series B....................... 12,074,000 735,470
SM Development Corp................................... 20,296,400 453,319
*Security Bank Corp................................... 1,695,000 720,588
*Soriano (A.) Corp.................................... 7,065,000 154,210
*Southeast Asia Cement Holdings, Inc.................. 38,798,000 571,137
*Steniel Manufacturing Corp........................... 713,000 14,477
Trans-Asia Oil & Energy............................... 1,140,000 17,939
*Union Bank of the Philippines........................ 387,100 152,285
*Universal Rightfield Property Holdings, Inc.......... 13,760,000 150,172
Universal Robina Corp................................. 11,507,000 1,080,604
Urban Bank, Inc....................................... 14,950 40,031
*Vitarich Corp........................................ 541,000 5,218
*William, Gothong & Aboitiz, Inc...................... 9,318,000 307,446
------------
TOTAL -- PHILIPPINES
(Cost $19,711,609)................................... 20,455,227
------------
MALAYSIA -- (8.7%) (##)
COMMON STOCKS -- (8.7%)
AMMB Holdings Berhad.................................. 527,200 376,710
AMMB Holdings Berhad 7.5% Unsecured Loan Stock 1999... 31,000 2,369
*Advance Synergy Berhad............................... 81,000 12,754
Affin Holdings Berhad................................. 667,000 216,192
*Amsteel Corp. Berhad................................. 198,000 19,326
Ancom Berhad.......................................... 115,000 32,192
Antah Holding Berhad.................................. 306,000 47,619
*Aokam Perdana Berhad................................. 32,000 3,624
*Arab Malaysia Corp. Berhad........................... 205,000 49,457
Arab Malaysia Finance Berhad.......................... 429,000 101,917
Arab Malaysian Development Berhad..................... 309,000 38,696
*Asas Dunia Berhad.................................... 122,000 24,490
*Asia Pacific Land Berhad............................. 700,000 70,902
Asiatic Development Berhad............................ 117,000 24,995
Austral Enterprises Berhad............................ 169,000 130,718
Ayer Hitam Planting Syndicate Berhad.................. 9,000 25,691
Bandar Raya Developments Berhad....................... 568,000 112,972
Batu Kawan Berhad..................................... 154,000 130,460
Berjaya Capital Berhad................................ 163,000 48,630
Berjaya Leisure Berhad................................ 74,000 25,212
Berjaya Singer Berhad................................. 32,400 9,845
*Bolton Properties Berhad............................. 145,000 24,834
Boustead Holdings Berhad.............................. 293,000 182,383
Cahya Mata Sarawak Berhad............................. 460,000 211,786
Chin Teck Plantations Berhad.......................... 54,000 64,144
Cold Storage (Malaysia) Berhad........................ 80,000 28,729
Commerce Asset Holding Berhad......................... 1,122,200 564,200
Cycle & Carriage Bintang Berhad....................... 95,000 76,630
DCB Sakura Merchant New Shares........................ 6,150 1,733
DMIB Berhad........................................... 24,000 5,127
DNP Holdings Berhad................................... 166,000 27,514
*Damansara Realty Berhad.............................. 391,000 39,244
*Datuk Keramik Holdings Berhad........................ 127,000 25,260
Diversified Resources Berhad.......................... 167,000 63,663
Edaran Otomobil Nasional Berhad....................... 264,000 301,436
*Ekran Berhad......................................... 42,000 10,287
*Faber Group Berhad................................... 340,600 38,263
Far East Holdings Berhad.............................. 54,000 27,348
Gadek (Malaysia) Berhad............................... 82,000 46,512
SHARES VALUE+
------------ ------------
*General Corp. Berhad................................. 178,000 $ 22,127
Genting Berhad........................................ 112,500 166,782
Gold Coin (Malaysia) Berhad........................... 40,000 33,886
Golden Hope Plantations Berhad........................ 159,000 91,359
*Golden Plus Holdings Berhad.......................... 77,000 18,151
Guiness Anchor Berhad................................. 35,000 25,009
*Gula Perak Berhad.................................... 250,000 42,818
Guthrie Ropel Berhad.................................. 148,000 85,584
HLG Capital Berhad.................................... 30,000 7,403
Hap Seng Consolidated Berhad.......................... 179,000 83,401
Hicom Holdings Berhad................................. 1,216,000 416,530
Highlands and Lowlands Berhad......................... 99,000 45,580
Hock Hua Bank Berhad (Foreign)........................ 94,000 84,825
Hong Leong Bank Berhad................................ 831,000 361,171
Hong Leong Credit Berhad.............................. 522,447 284,796
Hong Leong Industries Berhad.......................... 261,000 127,376
Hong Leong Properties Berhad.......................... 546,000 88,486
Hume Industries (Malaysia) Berhad..................... 289,000 186,280
Hwang-DBS (Malaysia) Berhad........................... 193,000 76,063
IGB Corp. Berhad...................................... 555,000 136,961
IJM Corp. Berhad...................................... 511,000 176,921
*Idris Hydraulic (Malaysia) Berhad.................... 484,000 70,416
*Innovest Berhad...................................... 228,000 44,088
*Insas Berhad......................................... 664,000 89,267
Intria Berhad......................................... 910,000 108,932
Island & Peninsular Berhad............................ 269,000 138,711
Johan Holdings Berhad................................. 73,000 8,940
Johor Port Berhad..................................... 323,000 83,278
Johore Tenggara Oil Palm Berhad....................... 97,000 25,188
*Kamunting Corp. Berhad............................... 802,000 87,880
Keck Seng (Malaysia) Berhad........................... 188,000 61,628
Kedah Cement Holdings Berhad.......................... 115,000 47,440
Kelang Container Terminal Berhad...................... 30,000 16,575
Kemayan Corp. Berhad.................................. 84,000 7,890
*Kretam Holdings Berhad............................... 25,000 9,208
Kuala Lumpur Kepong Berhad............................ 117,000 114,199
Kuala Sidim Berhad.................................... 145,000 154,880
Kulim Malaysia Berhad................................. 181,000 71,000
*Land - General Berhad................................ 266,000 48,497
Landmarks Berhad...................................... 244,000 35,499
*Larut Consolidated Berhad............................ 110,000 19,549
*Leader Universal Holdings Berhad..................... 427,333 85,781
*Lien Hoe Corp. Berhad................................ 211,000 29,532
Lingui Development Berhad............................. 570,000 238,287
Lion Land Berhad...................................... 462,375 48,962
*MBF Holdings Berhad.................................. 837,000 49,326
*MBF Land Berhad...................................... 455,000 39,802
MUI Properties Berhad................................. 724,000 84,000
Magnum Corp. Berhad................................... 240,000 67,624
Malayan Banking Berhad................................ 1,342,000 1,482,873
Malayan Cement Berhad................................. 67,500 18,274
Malayan United Industries Berhad...................... 291,200 39,417
Malayawata Steel Berhad............................... 92,000 19,315
Malaysia Building Society Berhad...................... 263,000 65,871
Malaysia Industrial Development Finance Berhad........ 743,000 176,514
Malaysia Mining Corp. Berhad.......................... 1,204,000 450,114
Malaysian Airlines System............................. 1,003,000 458,092
Malaysian Helicopter Services Berhad.................. 676,000 123,249
Malaysian Mosaics Berhad.............................. 286,000 72,685
Malaysian Oxygen Berhad............................... 23,000 32,615
*Malaysian Plantations Berhad......................... 170,000 27,707
</TABLE>
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<TABLE>
<CAPTION>
SHARES VALUE+
------------ ------------
<S> <C> <C>
Malaysian Resources Corp. Berhad...................... 1,126,333 $ 323,587
Maruichi Malaysia Steel Tube Berhad................... 92,000 49,473
Matsushita Electric Co. (Malaysia) Berhad............. 6,000 14,475
Metroplex Berhad...................................... 817,000 114,350
Mulpha International Berhad........................... 1,069,000 123,043
Nestle (Malaysia) Berhad.............................. 38,000 99,374
New Straits Times Press (Malaysia) Berhad............. 154,000 85,083
Nylex (Malaysia) Berhad............................... 219,500 65,890
OSK Holdings.......................................... 317,000 99,245
Olympia Industries Berhad............................. 122,000 13,031
Oriental Holdings Berhad.............................. 53,760 51,483
PJ Development Holdings Berhad........................ 136,000 20,788
Pan Pacific Asia Berhad............................... 100,000 30,018
Peladang Kimia Berhad................................. 25,000 9,208
Perlis Plantations Berhad............................. 529,000 416,965
Pernas International Holdings Berhad.................. 757,000 139,411
Perusahaan Otomobil Nasional Berhad................... 781,000 707,646
Pilecon Engineering Berhad............................ 105,000 25,912
Prime Utilities Berhad................................ 46,000 34,902
*Promet Berhad........................................ 140,000 7,477
Public Finance Berhad................................. 386,000 118,004
RHB Capital Berhad.................................... 123,000 46,663
RJ Reynolds Berhad.................................... 43,000 31,676
Resorts World Berhad.................................. 174,000 132,663
Road Builders (Malaysia) Holdings Berhad.............. 81,000 49,227
Rothmans of Pall Mall Malaysia Berhad................. 46,000 167,735
SCB Developments Berhad............................... 58,000 20,722
SP Settia Berhad...................................... 74,000 25,484
Sarawak Enterprise Corp. Berhad....................... 1,510,000 392,099
Sarawak Oil Palms Berhad.............................. 93,000 34,597
Selangor Dredging Berhad.............................. 84,000 10,442
Selangor Properties Berhad............................ 402,000 122,155
Shangri-la Hotels (Malaysia) Berhad................... 514,000 129,683
Shell Refining Co. Federation of Malaysia Berhad...... 48,000 36,597
*Silverstone Berhad................................... 6,930 0
Sime Darby Berhad (Malaysia).......................... 355,980 232,075
Sime UEP Properties Berhad............................ 66,000 42,785
Sistem Television Malaysia Berhad..................... 166,000 40,965
Southern Bank Berhad (Foreign)........................ 249,000 81,166
Southern Steel Berhad................................. 330,000 91,160
*Sungei Way Holdings Berhad........................... 394,000 96,505
*Sunway City Berhad................................... 294,000 46,564
Ta Enterprise Berhad.................................. 752,000 150,954
Talam Corp. Berhad.................................... 152,000 27,853
Tan & Tan Developments Berhad......................... 374,000 91,606
Tan Chong Motor Holdings Berhad....................... 665,000 137,164
Telekom Malaysia Berhad............................... 487,500 668,854
Tenaga Nasional Berhad................................ 502,000 466,869
*Time Engineering Berhad.............................. 582,000 112,541
*Tongkah Holdings Berhad.............................. 84,000 21,039
Tractors Malaysia Holdings Berhad..................... 214,000 61,087
Tradewinds (Malaysia) Berhad.......................... 189,000 67,525
Tronoh Mines Malaysia Berhad.......................... 32,000 34,770
UMW Holdings Berhad................................... 380,666 204,003
*United Engineering (Malaysia) Berhad................. 87,000 45,182
<CAPTION>
SHARES VALUE+
------------ ------------
<S> <C> <C>
United Malacca Rubber Estates Berhad.................. 102,000 $ 106,133
*United Merchant Group Berhad......................... 307,000 67,845
Yeo Hiap Seng (Malaysia) Berhad....................... 59,000 29,989
------------
TOTAL COMMON STOCKS
(Cost $26,073,832)................................... 17,332,220
------------
INVESTMENT IN CURRENCY -- (0.0%)%
Malaysian Ringetts (Cost $1).......................... 1
------------
TOTAL -- MALAYSIA
(Cost $26,073,833)................................... 17,332,221
------------
CHILE -- (7.8%)
COMMON STOCKS -- (7.3%)
Banco de Credito e Inversiones SA Series A............ 53,304 313,251
Banmedica SA.......................................... 347,000 77,861
CAP SA (Compania de Aceros del Pacifico).............. 100,000 172,027
COPEC (Cia de Petroleos de Chile)..................... 757,488 2,071,983
CTI Cia Tecno Industrial SA........................... 4,900,000 76,963
Cervecerias Unidas SA................................. 143,000 632,568
Chilectra Generacion SA............................... 3,119,986 786,747
Chilectra SA.......................................... 225,611 1,263,171
Cia de Consumidores de Gas de Santiago SA............. 103,000 308,153
Compania de Sud Americana de Vapores SA............... 410,000 157,709
Compania de Telecomunicaciones de Chile SA Series A... 200,000 1,145,421
Compania de Telecomunicaciones de Chile SA Series B... 352,166 1,354,629
Compania Manufacturera de Papeles y Cartones SA....... 117,150 908,760
Empresa Nacional de Electricidad SA................... 4,536,900 1,609,414
Empresa Nacional de Telecomunicaciones SA............. 49,000 92,984
Enersis SA............................................ 3,895,960 1,823,304
Forestal Terranova SA................................. 147,795 78,959
*Industrias Forestales Inforsa SA..................... 1,057,365 90,383
Invercap SA........................................... 100,000 74,794
Laboratorio Chile SA.................................. 271,069 237,500
Madeco Manufacturera de Cobre SA...................... 231,227 254,476
Maderas y Sinteticos SA............................... 420,205 114,940
Minera Mantos Blancos SA.............................. 102,255 104,888
Sociedad Industrial Pizarreno SA...................... 63,000 59,910
Sociedad Quimica y Minera de Chile SA Series A........ 43,364 145,489
Sociedad Quimica y Minera de Chile SA Series B........ 77,090 296,532
Vina de Concha y Toro SA.............................. 350,000 205,684
*Vina Sta Carolina SA Series A........................ 163,489 34,937
*Vina Sta Carolina SA Series B........................ 41,411 8,850
------------
TOTAL COMMON STOCKS
(Cost $14,043,250)................................... 14,502,287
------------
RIGHTS/WARRANTS -- (0.0%)
*Gener SA Rights 12/23/98............................. 2,792 0
------------
Total RIGHTS/WARRANTS
(Cost $0)............................................ 0
------------
</TABLE>
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<TABLE>
<CAPTION>
SHARES VALUE+
------------ ------------
<S> <C> <C>
INVESTMENT IN CURRENCY -- (0.5%)
Chilean Pesos (Cost $1,068,631)....................... $ 1,013,565
------------
TOTAL -- CHILE
(Cost $15,111,881)................................... 15,515,852
------------
TURKEY -- (7.4%)
COMMON STOCKS -- (7.4%)
Adana Cimento Sanayi Ticaret A.S...................... 29,121,000 88,275
Akbank................................................ 127,746,772 2,609,654
Aksa.................................................. 11,030,729 132,660
Alarko Sanayii ve Ticaret A.S......................... 1,716,999 80,617
*Alternatifbank A.S................................... 6,689,000 25,345
Altinyildiz Mensucat ve Konfeksiyan Fabrikalari
A.S................................................. 2,607,000 31,782
Arcelik A.S........................................... 25,036,590 725,937
Ardem Pisirici ve Istici Cihazlar..................... 3,000,000 49,423
Aygaz................................................. 6,209,280 342,687
*Bati Cimento A.S..................................... 1,000,000 47,776
Bekoteknik Sanayi A.S................................. 6,221,973 71,753
Bolu Cimento Sanayi A.S............................... 8,695,000 55,866
Bossa Ticaret ve Sanayi Isletmeleri A.S............... 9,711,000 62,394
Brisa Bridgestone Sanbanci Lastik San & Tic A.S....... 9,261,000 192,238
CIMSA A.S. (Cimento Sanayi ve Ticaret)................ 4,680,000 104,857
*Cimentas A.S......................................... 1,685,180 63,854
*Dardanel Onentas..................................... 9,633,000 27,614
Doktas................................................ 2,400,000 37,166
*Eczacibasi Ilac...................................... 3,781,620 100,926
*Eregli Demir ve Celik Fabrikalari Turk A.S........... 7,837,500 419,635
*Es Kisehir Bankasi Esbank............................ 20,109,361 51,681
Finansbank............................................ 29,672,000 195,532
Goltas Cimento........................................ 3,884,000 51,189
Good Year Lastikleri A.S.............................. 5,622,750 118,569
Hurriyet Gazette...................................... 21,391,500 274,883
*Izmir Demir Celik.................................... 23,057,017 44,063
Kartonsan............................................. 1,000,000 30,972
Kordsa Kord Bezi Sanayi ve Ticaret A.S................ 2,294,000 74,829
*Medya Holdings A.S. Series C......................... 16,754,000 70,383
*Milpa Ticari ve Sinai Urunler Pazarlama.............. 4,474,000 25,429
*Net Holding A.S...................................... 10,785,000 47,084
*Net Turizm........................................... 2,380,000 19,016
*Netas Northern Electric Telekomunikasyon A.S......... 6,718,400 128,391
Peg Profilo A.S....................................... 2,024,497 38,689
*Raks Elektroniks A.S................................. 279,000 39,988
*Sabah Yayincilik A.S................................. 5,323,000 33,762
Sarkuysan Elektrolitik Bakir Sanayi A.S............... 1,223,000 47,348
*T. Tuborg Bira ve Malt Sanayi A.S.................... 2,500,000 22,241
Tat Konserve.......................................... 2,749,996 89,703
Tekstil Bankasi A.S................................... 7,553,000 44,173
*Tofas Turk Otomobil Fabrikasi A.S.................... 13,999,125 184,502
Trakya Cam Sanayii A.S................................ 13,208,859 143,622
Turcas Petrolculuk A.S................................ 5,500,078 81,550
Turk Demir Dokum...................................... 9,299,942 76,606
SHARES VALUE+
------------ ------------
*Turk Dis Ticaret Bankasi A.S......................... 21,580,000 $ 145,763
Turk Siemens Kablo ve Elektrik Sanayi A.S............. 1,260,000 34,873
Turk Sise Cam......................................... 24,924,000 262,790
*Turkiye Garanti Bankasi A.S.......................... 58,056,497 1,185,997
Turkiye Is Bankasi A.S. Series C...................... 98,000,000 2,744,645
Yapi ve Kredi Bankasi A.S............................. 255,979,698 3,120,675
Yasas A.S............................................. 349,000 36,797
Yatak ve Vorgan Sanayi ve Ticaret Yatas............... 1,092,000 33,102
------------
TOTAL COMMON STOCKS
(Cost $11,994,052)................................... 14,769,306
------------
RIGHTS/WARRANTS -- (0.0%)
*Es Kisehir Bankasi Esbank Rights
12/03/98 (Cost $0).................................. 12,759,747 0
------------
TOTAL -- TURKEY
(Cost $11,994,052)................................... 14,769,306
------------
PORTUGAL -- (7.4%)
COMMON STOCKS -- (7.4%)
Banco Pinto & Sotto Mayor SA.......................... 11,051 202,086
Cel-Cat Fabrica Nacional de Condutores Electricos
SA.................................................. 4,950 27,261
Cimpor Cimentos de Portugal SA........................ 8,800 279,166
*Companhia de Seguros Mundial Confianca SA............ 24,000 787,520
Companhia de Seguros Tranquilidade SA................. 11,500 376,359
Corticeira Amorim Sociedad Gestora Participacoes
Sociais SA.......................................... 37,100 537,014
*Dom Pedro Investimentos Turisticos SA................ 1,800 22,733
EFACEC (Empresa Fabril de Maquinas Electricas)........ 18,133 178,083
Engil Sociedade Gestora de Participacoes Sociais SA... 10,252 69,764
Fabrica de Vidros Barbosa & Almeida SA................ 3,500 54,012
*Filmes Lusomundo SA.................................. 7,612 95,037
*Inparsa Industrias e Participacoes S.G.P.S. SA
EM98................................................ 6,399 62,420
*Inparsa Industrias e Participacoes S.G.P.S. SA....... 51,125 2,243,951
Investimentos Participacoes e Gestao SA Inapa......... 9,600 94,890
*Lusotur Sociedad Financeira de Turismo SA............ 13,266 218,033
Mague-Gestao e Participacoes SA....................... 11,800 391,212
Portucel Industrial Empresa Produtora de Celulose
SA.................................................. 23,100 148,667
Portugal Telecom SA................................... 71,932 3,133,555
Salvador Caetano Industrias Metalurgicas e Veiculos de
Transporte SA....................................... 15,868 423,592
*Sociedad Construcoes Soares da Costa SA.............. 23,710 105,284
Somague Sociedade Gestora de Participacoes Sociais
SA.................................................. 10,200 61,175
*Sonae Industria-Sociedade Gestora de Participacoes
Sociais SA.......................................... 10,000 139,558
</TABLE>
15
<PAGE>
DIMENSIONAL EMERGING MARKETS FUND INC.
CONTINUED
<TABLE>
<CAPTION>
SHARES VALUE+
------------ ------------
<S> <C> <C>
Sonae Investimentos Sociedade Gestora de Participacoes
Sociais SA.......................................... 81,800 $ 3,869,112
Uniceruniao Cervejeira SA............................. 50,600 1,154,078
------------
TOTAL COMMON STOCKS
(Cost $6,973,640).................................... 14,674,562
------------
RIGHTS/WARRANTS -- (0.0%)
*Sociedad Construcoes Soares da Costa SA Rights
12/31/98 (Cost $0).................................. 23,710 84,227
------------
TOTAL -- PORTUGAL
(Cost $6,973,640).................................... 14,758,789
------------
ARGENTINA -- (7.2%)
COMMON STOCKS -- (7.2%)
Acindar Industria Argentina de Aceros SA Series B..... 161,067 230,367
*Alpargatas SA Industrial y Comercial................. 275,000 35,756
Astra Cia Argentina de Petroleos SA................... 481,800 578,264
*Atanor Cia Nacional para la Industria Quimica SA
Series D............................................ 83,000 54,790
Bagley y Cia, Ltd. SA Series B........................ 121,090 224,057
Banco de Galicia y Buenos Aires SA Series A........... 265,686 1,429,648
*Banco del Sud Sociedad Anonima Series B.............. 56,563 239,305
Bco del Suqu.......................................... 44,450 64,909
*Buenos Aires Embotelladora SA Series B............... 250 19,003
CIADEA SA............................................. 134,917 211,858
*Capex SA Series A.................................... 42,000 273,049
*Celulosa Argentina SA Series B....................... 43,375 8,677
Central Costanera SA Series B......................... 62,000 163,710
Central Puerto SA Series B............................ 39,000 101,418
Corcemar SA Series B.................................. 50,805 284,559
Dycasa Dragados y Construcciones Argentina SA Series
B................................................... 35,000 54,960
*Garovaglio y Zorraquin SA............................ 25,800 36,127
*Indupa SA Industrial y Comercial..................... 316,322 230,957
Irsa Inversiones y Representaciones SA................ 88,477 247,780
Juan Minetti SA....................................... 45,296 144,973
Ledesma SA............................................ 288,459 196,187
Metrogas SA Series B.................................. 126,000 105,859
Molinos Rio de la Plata SA Series B................... 205,214 496,707
Nobleza-Piccardo Sdad Industrial Comercial y
Financiera Pica..................................... 44,200 163,569
*Sevel Argentina SA Series C.......................... 92,475 48,558
Siderca SA Series A................................... 1,175,532 1,716,586
*Sociedad Comercial del Plata......................... 305,410 200,996
*Sol Petroleo SA...................................... 76,000 53,970
Telecom Argentina Stet-France SA Series B............. 476,600 2,883,949
Telefonica de Argentina SA Series B................... 1,183,000 3,821,778
------------
TOTAL -- ARGENTINA
(Cost $11,678,852)................................... 14,322,326
------------
MEXICO -- (7.0%)
COMMON STOCKS -- (7.0%)
Apasco S.A. de C.V.................................... 48,000 169,758
Carso Global Telecom S.A. de C.V. Telecom Series A1... 271,000 663,319
SHARES VALUE+
------------ ------------
Cementos de Mexico S.A. de C.V. Series B.............. 358,000 $ 1,037,214
Cementos de Mexico SA de C.V. Series A................ 24,240 58,605
*Cifra S.A. de C.V. Series C.......................... 1,083,000 1,315,677
*Cifra S.A. de C.V. Series V.......................... 273,998 338,340
El Puerto de Liverpool S.A. Series 1.................. 20,000 27,374
El Puerto de Liverpool S.A. Series C1................. 328,600 387,380
Empresas ICA Sociedad Controladora S.A. de C.V........ 336,000 277,944
*Empresas la Moderna S.A. de C.V. Series A............ 184,885 1,080,550
Fomento Economico Mexicano B & D...................... 488,000 1,140,835
Grupo Carso S.A. de C.V. Series A-1................... 271,000 850,131
*Grupo Financiero Banamex Accival S.A. de C.V. Series
B................................................... 456,000 533,924
*Grupo Financiero Banamex Accival S.A. de C.V. Series
L................................................... 42,607 47,674
Grupo Financiero Bancomer S.A. de C.V. Series B....... 790,000 142,065
Grupo Financiero Bancomer S.A. de C.V. Series L....... 29,259 3,712
*Grupo Financiero GBM Atlantico S.A. de C.V. Series
B................................................... 149,000 89,315
*Grupo Financiero GBM Atlantico S.A. de C.V. Series
L................................................... 980 538
Grupo Financiero Inbursa-C............................ 9,455 17,570
*Grupo Financiero Santander Mexicano S.A. de C.V.
Sanmex Series B..................................... 20,867 4,274
*Grupo Financiero Serfin S.A. de C.V. Series B........ 290,383 21,468
*Grupo Gigante S.A. Series B.......................... 423,360 101,510
Grupo Industrial Alfa S.A. Series A................... 221,264 552,634
Grupo Industrial Bimbo S.A. de C.V. Series A.......... 529,348 839,806
*Grupo Televisa S.A. (Certificate Representing Series
A, Series D & Series L)............................. 62,000 798,421
Telefonos de Mexico S.A. Series L..................... 1,280,000 2,966,779
*Tolmex S.A. de C.V. Series B-2....................... 40,000 163,844
Vitro S.A............................................. 176,400 281,972
------------
TOTAL -- MEXICO
(Cost $17,210,778)................................... 13,912,633
------------
BRAZIL -- (6.8%)
PREFERRED STOCKS -- (4.5%)
Aracruz Celulose SA Series B.......................... 1,265,999 1,317,695
Banco Bradesco SA..................................... 133,883,959 969,883
Banco do Brasil SA.................................... 56,145,862 438,990
Banco do Estado de Sao Paulo SA....................... 14,980,000 724,702
*Belgo Mineira Baby Shares............................ 1,090,877 25,170
Brasmotor SA.......................................... 2,015,570 184,596
*COFAP (Cia Fabricadora De Pecas)..................... 14,250 92,551
Cia Siderurgica Belgo-Mineira......................... 2,181,754 66,363
Cia Vale do Rio Doce Preferred Series A............... 239,144 3,484,729
Duratex SA............................................ 4,510,000 120,170
*Embratel Participacoes SA............................ 1,389,166 22,556
IKPC Industrias Klabin de Papel e Celulose SA......... 418,531 62,729
Investimentos Itau SA................................. 1,088,000 770,051
</TABLE>
16
<PAGE>
DIMENSIONAL EMERGING MARKETS FUND INC.
CONTINUED
<TABLE>
<CAPTION>
SHARES VALUE+
------------ ------------
<S> <C> <C>
*Lojas Americanas SA.................................. 4,324,460 $ 25,638
Multibras Eletrodomesticos SA......................... 427,145 167,165
*Paranapanema SA...................................... 9,588,000 29,539
Sadia Oeste SA Inclusttia e Comercio Soes............. 308,282 154,018
*Telecelular Sul Participacoes SA..................... 1,389,166 3,123
*Telecentro Oeste Celular Participacoes SA Pref....... 1,389,166 2,175
*Telecentro-Sul Participacoes......................... 1,389,166 16,182
Telecomunicacoes Brasileiras SA....................... 1,389,166 243
*Teleleste Celular Participacoes SA................... 1,389,166 1,145
*Telemig Celular Participacoes SA..................... 1,389,166 2,221
*Telenordeste Celular Participacoes SA................ 1,389,166 1,828
*Telenorte Celular Participacoes SA................... 1,389,166 1,110
*Telenorte Leste Participacoes SA..................... 1,389,166 23,481
*Telesp Celular Participacoes......................... 1,389,166 14,343
*Telesp Participacoes SA.............................. 1,389,166 38,981
*Telesudeste Celular Participacoes SA................. 1,389,166 7,519
USIMINAS (Usinas Siderurgicas de Minas Gerais SA)..... 41,925 113,805
*Vale do Rio Doce Series B............................ 239,144 0
------------
TOTAL PREFERRED STOCKS
(Cost $6,761,343).................................... 8,882,701
------------
COMMON STOCKS -- (2.3%)
Banco do Estado de Sao Paulo SA....................... 6,300,000 218,225
Embraco SA............................................ 342,000 85,432
*Embratel Participacoes............................... 50,000,000 541,234
*Lojas Americanas SA.................................. 6,762,000 43,918
*Mannesmann SA........................................ 378,000 25,809
Souza Cruz Industria e Comercio....................... 150,016 974,324
*Tele Celular Sul Participacoes....................... 50,000,000 68,695
*Tele Centro Oeste Celular Participacoes.............. 50,000,000 49,960
*Tele Leste Celular Participacoes..................... 50,000,000 37,054
*Tele Norte-Leste Participacoes....................... 50,000,000 441,314
*Tele Sudeste Celular Participacoes................... 50,000,000 149,880
*Telecentro Sul Participacoes SA...................... 50,000,000 333,067
Telecomunicacoes Brasileiras SA....................... 50,000,000 5,829
*Telemig Celular Participacoes........................ 50,000,000 58,287
*Telenordeste Celular Participacoes................... 50,000,000 41,633
*Telenorte Celular Participacoes...................... 50,000,000 25,813
*Telesp Celular Participacoes SA...................... 50,000,000 299,760
*Telesp Participacoes SA.............................. 50,000,000 915,934
VSMA (Cia Vidraria Santa Marina)...................... 121,000 192,438
White Martins SA...................................... 200,000 114,908
------------
TOTAL COMMON STOCKS
(Cost $2,805,074).................................... 4,623,514
------------
TOTAL -- BRAZIL
(Cost $9,566,417).................................... 13,506,215
------------
ISRAEL -- (5.8%)
COMMON STOCKS -- (5.8%)
*Africa-Israel Investments, Ltd....................... 3,000 137,419
*Africa-Israel Investments, Ltd....................... 150 64,415
*Agis Industries (1983), Ltd.......................... 17,600 94,475
American Israeli Paper Mills, Ltd..................... 3,000 107,001
Bank Hapoalim B.M..................................... 1,029,800 1,975,296
Bank Leumi Le-Israel.................................. 947,250 1,312,998
CLAL Electronics Industries, Ltd...................... 3,460 488,676
SHARES VALUE+
------------ ------------
CLAL Industries, Ltd.................................. 122,600 $ 571,529
Clal Israel, Ltd...................................... 25,150 583,813
Delek Israel.......................................... 7,000 189,380
Elbit Medical Imaging................................. 16,533 170,790
Elbit Systems, Ltd.................................... 16,533 200,373
Elbit, Ltd............................................ 16,533 51,199
*Elite Industries, Ltd................................ 10,080 320,323
Elron Electronic Industries, Ltd...................... 20,066 295,382
First International Bank of Israel.................... 78,000 390,784
IDB Bankholding Corp., Ltd............................ 33,600 678,963
IDB Development Corp., Ltd. Series A.................. 36,450 753,076
Israel Chemicals, Ltd................................. 917,000 774,454
*Israel Corp. Series B................................ 800 264,340
Koor Industries, Ltd.................................. 12,205 1,045,335
*M.A.Industries, Ltd.................................. 227,355 491,966
Osem Investment, Ltd.................................. 61,856 263,859
Property and Building Corp., Ltd...................... 3,461 267,528
Super-Sol, Ltd. Series B.............................. 14,437 33,410
Tadiran, Ltd.......................................... 0 2
Tambour............................................... 40,000 50,578
------------
TOTAL COMMON STOCKS
(Cost $11,551,692)................................... 11,577,364
------------
INVESTMENT IN CURRENCY -- (0.0%)
Israel Shekel (Cost $3)............................... 3
------------
TOTAL -- ISRAEL
(Cost $11,551,695)................................... 11,577,367
------------
GREECE -- (4.5%)
COMMON STOCKS -- (2.3%)
Aegek................................................. 15,340 80,558
Aktor S.A............................................. 12,000 118,845
*Alcatel Cables Hellas S.A............................ 4,850 56,409
*Alfa-Beta Vassilopoulos S.A.......................... 5,000 98,685
Alpha Credit Bank..................................... 5,625 535,280
*Alpha Leasing........................................ 10,475 174,257
Alte Technological Company............................ 9,250 114,268
*Aluminum of Attica S.A............................... 8,700 136,450
Attica Enterprises S.A. Holdings...................... 65,500 562,128
*Atti-Kat S.A......................................... 6,000 38,910
Delta Dairy S.A....................................... 14,950 192,322
*Etba Leasing SA...................................... 5,725 62,652
*General Hellenic Bank................................ 8,370 356,949
*Hellas Can Packaging Manufacturers S.A............... 8,400 179,114
*Hellenic Cables S.A.................................. 8,400 68,389
Hellenic Sugar Industry S.A........................... 26,900 247,924
Hellenic Technodomiki S.A............................. 9,600 66,486
*Inform P. Lykos S.A.................................. 3,850 77,752
Klonatex S.A.......................................... 5,460 46,762
Lavipharm S.A......................................... 10,400 86,138
*Light Metals Industry................................ 5,000 38,769
Michaniki S.A......................................... 17,835 98,374
*National Investment Bank for Industrial
Development......................................... 3,000 266,926
Petzetakis S.A........................................ 4,000 32,566
*Selected Textile Industry Assoc. S.A................. 28,350 75,339
*Shelman.............................................. 16,600 159,137
Silver & Baryte Ores Mining Co. S.A................... 9,300 337,610
</TABLE>
17
<PAGE>
DIMENSIONAL EMERGING MARKETS FUND INC.
CONTINUED
<TABLE>
<CAPTION>
SHARES VALUE+
------------ ------------
<S> <C> <C>
Strintzis Shipping Lines S.A.......................... 19,500 $ 91,751
*Themeliodomi......................................... 6,750 72,560
------------
TOTAL COMMON STOCKS
(Cost $4,384,415).................................... 4,473,310
------------
INVESTMENT IN CURRENCY -- (2.2%)
Greek Drachmas (Cost $4,402,091)...................... 4,419,652
------------
TOTAL -- GREECE
(Cost $8,786,506).................................... 8,892,962
------------
INDONESIA -- (2.0%)
COMMON STOCKS -- (2.0%)
*PT Argo Pantes Tbk................................... 271,250 15,526
*PT Astra International Tbk........................... 2,188,800 287,417
PT Berlian Laju Tanker Tbk............................ 431,600 74,113
*PT Branta Mulia Tbk.................................. 126,000 2,758
*PT Charoen Pokphand Tbk.............................. 210,000 6,364
*PT Dankos Laboratories............................... 94,500 3,500
*PT Gajah Tunggal Tbk................................. 1,488,000 50,101
*PT Gt Kabel Indonesia Tbk............................ 360,000 6,061
*PT Hanjaya Mandala Sampoerna Tbk..................... 910,000 600,536
*PT Hero Supermarket Tbk.............................. 220,000 32,592
*PT Indah Kiat Pulp & Paper Corp...................... 4,815,196 1,734,761
*PT Indocement Tunggal Prakarsa....................... 166,000 57,569
*PT Indofood Sukses Makmur............................ 42,330 20,951
*PT Indorama Synthetics Tbk........................... 535,320 70,294
*PT Inti Indorayo Utama............................... 411,500 18,012
*PT Jakarta International Hotel and Development Tbk... 1,590,000 58,889
*PT Japfa Comfeed Indonesia Tbk....................... 124,000 2,087
*PT Kalbe Farma Tbk................................... 409,600 27,582
*PT Lippo Land Development Tbk........................ 386,400 16,913
PT Mayorah Indah...................................... 577,572 36,949
SHARES VALUE+
------------ ------------
*PT Modern Photo Tbk.................................. 250,000 $ 17,256
*PT Pakuwon Jati Tbk.................................. 396,000 4,000
*PT Panasia Indosyntec Tbk............................ 403,200 10,860
*PT Polysindo Eka Perkasa Tbk......................... 2,064,000 145,939
*PT Sari Husada Tbk................................... 36,480 12,344
*PT Semen Cibinong Tbk................................ 743,400 32,539
PT Semen Gresik....................................... 600,000 670,705
*PT Summarecon Agung.................................. 258,587 5,659
PT Surya Toto Indonesia............................... 46,400 9,374
PT Tigaraksa Satria Tbk............................... 68,400 10,594
*PT Unggul Indah Corp. Tbk............................ 292,596 39,407
------------
TOTAL -- INDONESIA
(Cost $13,317,123)................................... 4,081,652
------------
FACE
AMOUNT
------------
(000)
TEMPORARY CASH
INVESTMENTS -- (1.0%)
Repurchase Agreement, Chase Manhattan Bank N.A. 4.95%,
12/01/98 (Collateralized by U.S. Treasury Notes
5.50%, 03/31/03, valued at $2,129,356) to be
repurchased at $2,086,287
(Cost $2,086,000)................................... $ 2,086 2,086,000
------------
TOTAL INVESTMENTS -- (100.0%)
(Cost $206,121,800)++................................ $199,449,752
------------
------------
- --------------------
+ See Note B to Financial Statements.
* Non-Income Producing Securities
++ The cost for federal income tax purposes is $210,292,602.
## Illiquid Securities fair valued by the Board of Directors.
</TABLE>
See accompanying Notes to Financial Statements.
18
<PAGE>
DIMENSIONAL EMERGING MARKETS FUND INC.
STATEMENT OF ASSETS AND LIABILITIES
NOVEMBER 30, 1998
(AMOUNTS IN THOUSANDS, EXCEPT SHARE AMOUNTS)
<TABLE>
<S> <C>
ASSETS:
Investments at Value (Cost of $206,122)................................................ $ 199,450
Cash................................................................................... 27
Receivables:
Investment Securities Sold........................................................... 1,616
Dividends, Interest and Tax Reclaims................................................. 275
Fund Shares Sold..................................................................... 18
---------
Total Assets....................................................................... 201,386
---------
LIABILITIES:
Payable for Investment Securities Purchased............................................ 5,273
Deferred Chilean Repatriation Tax...................................................... 514
Accrued Expenses....................................................................... 136
---------
Total Liabilities.................................................................. 5,923
---------
NET ASSETS applicable to 13,256,523 shares outstanding $.01 par value shares
(authorized 200,000,000 shares)...................................................... $ 195,463
---------
---------
NET ASSET VALUE........................................................................ $ 14.74
---------
---------
PUBLIC OFFERING PRICE PER SHARE........................................................ $ 14.81
---------
---------
NET ASSETS CONSIST OF:
Paid-In Capital........................................................................ $ 173,385
Accumulated Net Investment Loss........................................................ (629)
Undistributed Net Realized Gain........................................................ 30,366
Accumulated Net Realized Foreign Exchange Loss......................................... (995)
Unrealized Net Foreign Exchange Gain................................................... 8
Unrealized Depreciation of Investment Securities and Foreign Currency.................. (6,672)
---------
Total Net Assets................................................................... $ 195,463
---------
---------
</TABLE>
See accompanying Notes to Financial Statements.
19
<PAGE>
DIMENSIONAL EMERGING MARKETS FUND INC.
STATEMENT OF OPERATIONS
FOR THE YEAR ENDED NOVEMBER 30, 1998
(AMOUNTS IN THOUSANDS)
<TABLE>
<S> <C>
INVESTMENT INCOME
Dividends (Net of Foreign Taxes Withheld and Repatriation of $559)................. $ 4,307
Interest........................................................................... 648
---------
Total Investment Income........................................................ 4,955
---------
EXPENSES
Investment Advisory Services....................................................... 182
Accounting & Transfer Agent Fees................................................... 224
Custodian's Fees................................................................... 594
Legal Fees......................................................................... 42
Audit Fees......................................................................... 16
Directors' Fees and Expenses....................................................... 42
Organization Costs................................................................. 8
Other.............................................................................. 56
---------
Total Expenses................................................................. 1,164
---------
NET INVESTMENT INCOME.............................................................. 3,791
---------
NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS AND FOREIGN CURRENCY
Net Realized Gain on Investment Securities............................................. 30,379
Net Realized Loss on Foreign Currency Transactions..................................... (995)
Change in Unrealized Appreciation (Depreciation) of:
Investment Securities and Foreign Currency......................................... (41,320)
Deferred Chilean Repatriation Tax.................................................. 205
Translation of Foreign Currency Denominated Amounts................................ (15)
---------
NET LOSS ON INVESTMENT SECURITIES AND FOREIGN CURRENCY............................. (11,746)
---------
NET DECREASE IN NET ASSETS RESULTING FROM OPERATIONS................................... $ (7,955)
---------
---------
</TABLE>
See accompanying Notes to Financial Statements.
20
<PAGE>
DIMENSIONAL EMERGING MARKETS FUND INC.
STATEMENTS OF CHANGES IN NET ASSETS
(AMOUNTS IN THOUSANDS)
<TABLE>
<CAPTION>
YEAR ENDED YEAR ENDED
NOV. 30, NOV. 30,
1998 1997
----------- -----------
<S> <C> <C>
INCREASE (DECREASE) IN NET ASSETS
Operations:
Net Investment Income................................................................... $ 3,791 $ 3,841
Net Realized Gain on Investment Securities.............................................. 30,379 197
Net Realized Gain (Loss) on Foreign Currency Transactions............................... (995) 6
Change in Unrealized Appreciation (Depreciation) of:
Investment Securities and Foreign Currency.......................................... (41,320) (5,295)
Deferred Chilean Repatriation Tax................................................... 205 1,568
Translation of Foreign Currency Denominated Amounts................................. (15) 9
----------- -----------
Net Increase (Decrease) in Net Assets Resulting from Operations..................... (7,955) 336
----------- -----------
Distributions From:
Net Investment Income................................................................... (7,577) (506)
Net Realized Gain....................................................................... (204) (209)
----------- -----------
Total Distributions................................................................. (7,781) (715)
----------- -----------
Capital Share Transactions (1):
Capital Shares Issued................................................................... 9,768 19,000
Shares Issued in Lieu of Cash Distributions............................................. 7,781 715
Capital Shares Redeemed................................................................. (155) --
----------- -----------
Net Increase from Capital Share Transactions........................................ 17,394 19,715
----------- -----------
Total Increase...................................................................... 1,658 19,336
NET ASSETS
Beginning of Period..................................................................... 193,805 174,469
----------- -----------
End of Period........................................................................... $ 195,463 $ 193,805
----------- -----------
----------- -----------
(1) SHARE AMOUNTS:
Shares Issued........................................................................... 747 964
Shares Issued in Lieu of Cash Distributions............................................. 510 47
Shares Redeemed......................................................................... (12) --
----------- -----------
1,245 1,011
----------- -----------
----------- -----------
</TABLE>
See accompanying Notes to Financial Statements.
21
<PAGE>
DIMENSIONAL EMERGING MARKETS FUND INC.
FINANCIAL HIGHLIGHTS
(FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD)
<TABLE>
<CAPTION>
YEAR YEAR YEAR YEAR YEAR
ENDED ENDED ENDED ENDED ENDED
NOV. 30, NOV. 30, NOV. 30, NOV. 30, NOV. 30,
1998 1997 1996 1995 1994
---------- ---------- ---------- ---------- ----------
<S> <C> <C> <C> <C> <C>
Net Asset Value, Beginning of Period.... $ 16.13 $ 15.86 $ 14.77 $ 17.10 $ 15.18
---------- ---------- ---------- ---------- ----------
INCOME FROM INVESTMENT OPERATIONS
Net Investment Income................. 0.31 0.33 0.26 0.28 0.19
Net Gain (Loss) on Securities
(Realized and Unrealized)........... (1.06) 0.01 1.36 (2.29) 1.94
---------- ---------- ---------- ---------- ----------
Total from Investment Operations...... (0.75) 0.34 1.62 (2.01) 2.13
---------- ---------- ---------- ---------- ----------
LESS DISTRIBUTIONS
Net Investment Income................. (0.62) (0.05) (0.28) (0.29) (0.20)
Net Realized Gain..................... (0.02) (0.02) (0.25) (0.03) (0.01)
---------- ---------- ---------- ---------- ----------
Total Distributions................... (0.64) (0.07) (0.53) (0.32) (0.21)
---------- ---------- ---------- ---------- ----------
Net Asset Value, End of Period.......... $ 14.74 $ 16.13 $ 15.86 $ 14.77 $ 17.10
---------- ---------- ---------- ---------- ----------
---------- ---------- ---------- ---------- ----------
Total Investment Return (a)............. (4.80)% 2.12% 12.41% (11.73)% 14.02%
Net Assets, End of Period (thousands)... $ 195,463 $ 193,805 $ 174,469 $ 157,054 $ 153,095
Ratio of Expenses to Average Net
Assets................................ 0.64% 0.62%(b) 0.59%(b) 0.58%(b) 0.80%(b)
Ratio of Net Investment Income to
Average Net Assets.................... 2.08% 1.87%(b) 1.64%(b) 2.10%(b) 1.18%(b)
Portfolio Turnover Rate................. 34.84% 0.49% 0.29% 5.73% 0.26%
</TABLE>
- --------------
(a) Based on per share net asset value. Prior to November 21, 1997, the per
share market price was not readily determinable since fund shares were only
sold at a public offering price.
(b) Had certain waivers not been in effect, the ratios of expenses to average
net assets for the years ended November 30, 1997 through 1994 would have
been 1.02%, 0.99%, 0.98%, and 0.88%, respectively, and the ratios of net
investment income to average net assets for the years ended November
30,1997 through 1994 would have been 1.47%, 1.24%, 1.70% and 1.10%,
respectively.
See accompanying Notes to Financial Statements.
22
<PAGE>
DIMENSIONAL EMERGING MARKETS FUND INC.
NOTES TO FINANCIAL STATEMENTS
A. ORGANIZATION:
Prior to November 21, 1997, Dimensional Emerging Markets Fund Inc. (the
"Fund") was organized as a closed-end management investment company registered
under the Investment Company Act of 1940, as amended. Effective November 21,
1997 the Fund was reorganized as an open-end management investment company.
B. SIGNIFICANT 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 Fund in preparation of its financial
statements. The preparation of financial statements in accordance with 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: Securities held by the Fund which are listed on a
securities exchange and for which market quotations are readily available are
valued at the last quoted sale price of the day or, if there is no such reported
sale, at the mean between the most recent bid and asked prices. Price
information on listed securities is taken from the exchange where the security
is primarily traded. Unlisted securities for which market quotations are readily
available are valued at the mean between the most recent bid and asked prices.
Securities for which quotations are not readily available are determined in good
faith at fair value using methods determined by the Board of Directors.
2. FOREIGN CURRENCY TRANSLATIONS: Securities and other assets and
liabilities of the Fund whose values are initially expressed in foreign
currencies are translated to U.S. dollars at the mean price of such currency
against U.S. dollars last quoted by a major bank. Dividend and interest income
and certain expenses are translated to U.S. dollars at the ratio of exchange on
their respective accrual dates. Receivables and payables denominated in foreign
currencies are marked to market based on daily exchange rates and exchange gains
or losses are realized upon ultimate receipt or disbursement.
The Fund does not isolate the effect of fluctuations in foreign exchange
rates from the effect of fluctuations in the market prices of securities held
whether realized or unrealized.
Realized gains or losses on foreign currency transactions represent net
foreign exchange gains or losses from the disposition of foreign currencies,
currency gains or losses realized between the trade and settlement dates on
securities transactions, and the difference between amounts of interest,
dividends and foreign withholding taxes recorded on the Fund's books and the
U.S. dollar equivalent amounts actually received or paid.
3. FEDERAL INCOME TAXES: It is the Fund's intention to continue to qualify
as a regulated investment company and distribute all of its taxable income.
Accordingly, no provision for federal taxes is required in the financial
statements.
4. REPURCHASE AGREEMENTS: The Fund may purchase money market instruments
from financial institutions, such as banks and non-bank dealers, subject to the
seller's agreement to repurchase them at an agreed upon date and price. The
seller will be required on a daily basis to maintain the value of the collateral
subject to the agreement at not less than the repurchase price (including
accrued interest). The agreements are conditioned upon the collateral being
deposited under the Federal Reserve book-entry system or with the Fund's
custodian. If the seller defaults and the value of the collateral declines or if
bankruptcy proceedings are commenced with respect to the seller of the security,
realization of the collateral by the Fund may be subject to legal proceedings.
All open repurchase agreements were entered into on November 30, 1998.
5. FOREIGN MARKET RISKS: Investments in foreign markets may involve
certain considerations and risks not typically associated with investments in
the United States, including the possibility of future political and economic
23
<PAGE>
developments and the level of foreign governmental supervision and regulation of
foreign securities markets. These markets are generally smaller, less liquid and
more volatile than the major securities markets in the United States.
Consequently, acquisition and disposition of securities by the Fund may be
inhibited.
6. OTHER: Security transactions are accounted for on the date the
securities are purchased or sold. Costs used in determining realized gains and
losses on the sale of investment securities are those of specific securities
sold. Dividend income and distributions to shareholders are recorded on the
ex-dividend date. Interest income is recorded on the accrual basis. Costs
incurred by the Fund in connection with its organization are being amortized on
a straight-line basis over a five year period beginning at the commencement of
operations of the Fund.
Some countries require governmental approval for the repatriation of
investment income, capital or the proceeds of sales of foreign investors. In
addition, if there is a deterioration in a country's balance of payments or for
other reasons, a country may impose temporary restrictions on foreign capital
remittances abroad. Amounts repatriated prior to the end of specified periods
may be subject to taxes as specified in the Fund's prospectus. The fund has
recorded deferred repatriation taxes relating to net unrealized appreciation on
its investment in Chile.
C. INVESTMENT ADVISOR:
Dimensional Fund Advisors Inc. (the "Advisor") provides investment advisory
services to the Fund. For the year ended November 30, 1998, the fund paid the
Advisor a fee based on an annual effective rate of 0.10% of average net assets.
An investment committee of the Advisor approves all investment decisions
made by the Fund.
Certain officers of the Fund are also officers, directors and shareholders
of the Advisor.
D. PURCHASES AND SALES OF SECURITIES:
For the year ended November 30, 1998, the Fund made the following purchases
and sales of investment securities other than U.S. Government securities and
temporary cash investments (amounts in thousands):
<TABLE>
<S> <C>
Purchases............................................... $ 81,156
Sales................................................... 62,055
</TABLE>
E. INVESTMENT TRANSACTIONS:
At November 30, 1998, gross unrealized appreciation and depreciation for
federal income tax purposes of investment securities and foreign currencies were
as follows (amounts in thousands):
<TABLE>
<S> <C>
Gross Unrealized Appreciation.......................... $ 41,096
Gross Unrealized Depreciation.......................... (51,939)
---------
Net.................................................... $ (10,843)
---------
---------
</TABLE>
F. LINE OF CREDIT
The Fund together with other DFA-advised portfolios, has entered into a $50
million unsecured line of credit with its domestic custodian bank. The Fund is
permitted to borrow, subject to its investment limitations, up to a maximum of
$50 million. Borrowings under the line are charged interest at the current
overnight federal funds rate plus a variable rate determined at the date of
borrowing. Each portfolio is individually, and not jointly liable for its
particular advances under the line. There is no commitment fee on the unused
portion of the line of credit. There were no borrowings under the line of credit
by the Fund during the year ended November 30, 1998.
G. REIMBURSEMENT FEES:
Shares of the Fund are sold at a public offering price which is equal to the
current net asset value of such shares plus a reimbursement fee. Reimbursement
fees are recorded as an addition to paid in capital and are used to defray costs
associated with investing proceeds of the sales of shares to investors. The
reimbursement fee of the Fund is 0.50% of the net asset value of its shares.
H. SUBSEQUENT EVENT:
On December 8, 1998, Dimensional Emerging Markets Fund Inc. changed its name
to Dimensional Emerging Markets Value Fund Inc.
24
<PAGE>
REPORT OF INDEPENDENT ACCOUNTANTS
TO THE SHAREHOLDERS AND BOARD OF DIRECTORS OF
DIMENSIONAL EMERGING MARKETS FUND INC.:
In our opinion, the accompanying statement of assets and liabilities, including
schedule of investments, of Dimensional Emerging Markets Fund Inc. and the
related statements of operations, and of changes in net assets and the financial
highlights present fairly, in all material respects, the financial position of
Dimensional Emerging Markets Fund Inc. at November 30, 1998, the results of its
operations, the changes in its net assets and the financial highlights for each
of the periods presented, in conformity with generally accepted accounting
principles. These financial statements and financial highlights (hereafter
referred to as "financial statements") are the responsibility of the Fund's
management; our responsibility is to express an opinion on these financial
statements based on our audits. We conducted our audits of these financial
statements in accordance with generally accepted auditing standards which
require that we plan and perform the audit to obtain reasonable assurance about
whether the financial statements are free of material misstatement. An audit
includes examining, on a test basis, evidence supporting the amounts and
disclosures in the financial statements, assessing the accounting principles
used and significant estimates made by management, and evaluating the overall
financial statement presentation. We believe that our audits, which included
confirmation of securities owned at November 30, 1998 by correspondence with the
custodian and brokers, provide a reasonable basis for the opinion expressed
above.
PricewaterhouseCoopers LLP
2400 Eleven Penn Center
Philadelphia, Pennsylvania
January 15, 1999
25
