GIT Equity Trust
Worldwide Growth Portfolio
Semi-Annual Report
September 30, 1995/Unaudited
November 11, 1995
Dear Fellow Shareholder:
The six-month period ended September 30, 1995 was one of
continued recovery for emerging markets. A rally in Asian
and Latin American equities that began the second week in
March lasted into the middle of July, after which many
markets began to consolidate. The total return on the
Worldwide Growth Portfolio during this period was 14.85%,
which compares favorably to the average emerging markets
fund return of 10.07% for the same period, as measured by
Lipper Analytical Services, Inc.
The strong performance of the Worldwide Growth Portfolio was
driven by several factors. In Asia, an extra-weighted
position in South Korea contributed to the return. Our
holdings in South Korea were led by Samsung Electronics, the
world's leading manufacturer of DRAM computer memory chips,
which reported exceptional earnings gains over the last two
years. The portfolio also benefited from our cautious
stance in Malaysia, where stocks appeared to us to be fully
valued on a fundamental basis. An underweighted position in
Malaysia helped the fund's relative performance in August
and September when that market suffered a setback.
In Latin America, share prices continued to recover from the
extremely depressed levels of February and March. Our
performance in Latin America was led by a heavy weighting in
Brazilian equities; it continues to be our belief that
Brazil has one of the world's most undervalued stock
markets. The attractive valuations compensate for that
country's moderate political risk. The portfolio's Latin
American performance was also aided by a large position in
CPT, the Peruvian national long-distance phone company,
which went through a merger and restructuring that greatly
enhanced shareholder value. We have since pared back that
position, although we continue to like the company's long-
term prospects.
The Mexican market continued to recover from the currency
devaluation and financial crisis that burdened the country
at the start of the year. We used the strength in the
Mexican market to reduce our holdings in the domestically
oriented firms there and in companies with heavy debt
burdens, while increasing our exposure to the export sector.
We are hopeful that the Mexican economy can recover in 1996,
but note that our exposure to Mexico is roughly half of what
it was at this time last year. During the six months
covered by this report, we also increased our investments in
other markets, notably Israel, Turkey, and South Africa.
In comparison to the industrialized world, and particularly
the U.S. market, our belief is that emerging markets around
the world are looking increasingly undervalued. Whereas
price-earnings ratios in Latin America, Asia, and elsewhere
were at record highs two years ago, many companies now trade
at single digit multiples, and in a number of cases, at
discounts to book value. Given the recent weakness in the
emerging markets, they appear to offer considerable long-
term appreciation potential at current price levels. We
will continue to direct our efforts toward making
investments that appear best positioned to realize this
potential.
We appreciate your confidence in GIT Investment Funds, and
encourage you to become familiar with all 13 of our mutual
fund portfolios.
Sincerely,
(signature)
A. Bruce Cleveland
President
<PAGE>
Worldwide Growth Portfolio
Portfolio of Investments - September 30, 1995
(Unaudited)
Number
Company Description of Shares Value
COMMON STOCKS AND EQUIVALENTS:
76.6% of Net Assets
AFRICA: 1.5%
The Southern
Africa Fund,
Inc. Multi-industry 3,500 $51,625
ARGENTINA: 6.7%
Central Puerto
S.A., Class B Electric utility 12,000 38,980
*Inversiones y
Representacion,
S.A., Class B<F2>Engineering and
construction 20,000 47,576
Telecom Argentina
Stet-France
Telecom S.A.,
ADR <F4> Telecommunications 1,500 62,812
Telefonica de
Argentina S.A.,
Class B Telecommunications 20,600 49,003
YPF Sociedad Anonmia,
ADR<F4> Oil and gas 2,200 39,600
CHILE: 3.4%
The Chile Fund,
Inc. Multi-industry 3,200 72,400
Compania
Telecomunicacion
Chile, ADR<F4> Telecommunications 700 48,387
HONG KONG/CHINA: 13.0%
Consolidated Electric
Power Asia
Ltd. Electric utility 20,000 40,095
First Pacific
Company Ltd. Diversified 84,000 89,631
Guangdong
Investment
Limited Diversified 46,000 27,517
HSBC Holdings
Plc. Banking and financial
services 6,000 83,423
Hutchison Whampoa
Limited Diversified 16,000 86,708
K Wah International
Holdings Building materials 200,000 30,265
*K Wah
International
Holdings,
Warrants
12/31/97#<F1> Building materials 20,000 --
Sinocan Holdings
Limited Packaging and
containers 210,000 77,409
Yizheng Chemical
Fibre Company,
Ltd., H Shares Chemicals 80,000 23,539
INDIA: 2.0%
The India Fund
Inc. Multi-industry 3,000 29,250
The Morgan Stanley
India Investment
Fund, Inc. Multi-industry 1,500 15,562
*Sanghi Polyesters
Ltd., GDR
(144A) <F2> Textiles 6,000 24,097
INDONESIA: 6.3%
P.T. Gadjah
Tunggal Rubber products 50,000 33,120
P.T. Indonesian
Satellite
Corporation,
ADR<F3> Telecommunications 1,300 45,662
P.T. Indorama
Synthetics Textiles 15,000 50,177
P.T. Pabrik
Kertas Tjiwi
Kimia Forest and paper
products 27,360 51,953
P.T. Semen
Cibinong Building Materials 15,000 40,737
ISRAEL: 1.6%
ECI
Telecommunications
Limited DesignsTelecommunications 2,500 55,937
MALAYSIA: 4.5%
Malaysian
Assurrance
Alliance BerhadFinancial Services 12,000 52,548
O.Y.L. Industries
Berhad Real Estate 8,000 66,242
Westmont
Industries
Berhad Diversified 10,000 40,605
See Notes to Portfolio of Investments
<PAGE>
Worldwide Growth Portfolio
Portfolio of Investments - September 30, 1995 (continued)
(Unaudited)
Number
Company Description of Shares Value
MEXICO: 6.7%
Cemex, S.A. de C.V.,
Series B Building materials 15,000 $67,189
*Desc, S.A. de
C.V., ADR<F3> Diversified 2,500 37,812
*Empaques
Ponderosa,
S.A.,
Series B Packaging 20,000 46,985
Grupo Financiero
Banamex Accival
S.A. de C.V.,
Series B Banking and financial
services 4,100 8,181
Grupo Financiero
Banamex Accival
S.A. de C.V.,
Series L Banking and financial
services 10,920 21,378
*Grupo Financiero
Bancomer S.A.
de C.V.,
Series B Banking and financial
services 21,500 8,553
*Grupo
Financiero
Bancomer S.A.
de C.V.,
Series L Banking and financial
services 796 298
*Transportacion
Maritima
Mexicana,
S.A. de C.V.,
ADR<F3> Marine transportation 5,300 45,050
PAKISTAN: 1.3%
*Pakistan State
Oil Limited Oil 4,000 45,642
PERU: 3.1%
*Compania Goodyear
del Peru Rubber products 20,000 39,947
CPT Telefonica
del Peru S.A.,
B shares Telecommunications 36,112 67,800
PHILIPPINES: 1.5%
Philippines Long
Distance Telephone
Company,
ADR<F3> Telecommunications 800 53,100
POLAND: 0.7%
Vistula S.A. Apparel 6,000 23,694
PORTUGAL: 0.7%
Espirito Santo
Financial
Holding
S.A., ADR<F3> Banking and financial
services 2,000 23,500
SINGAPORE: 6.6%
Clipsal Industries
Ltd. Electronics 26,000 65,000
*Clipsal
Industries
Ltd., Warrants
8/12/98<F2> Electronics 2,000 1,300
First Capital
Corporation
Ltd. Diversified 25,000 68,142
Singmarine
Industries
Limited Marine transportation 20,000 44,960
*Sunright
Limited<F2> Electronics 80,000 53,671
SOUTH KOREA: 7.8%
*L.G. Chemical
Limited<F2> Chemicals 2,020 44,596
*L.G.
Electronics<F2>Electronics 2,000 67,407
Pohang Iron &
Steel Company
Ltd. Steel 450 38,975
Samsung Electronics
Company Electronics 337 72,859
*Samsung
Electronics
Company
(New)<F2> Electronics 7 1,513
*Samsung
Electronics
Company (New
Line)#<F1><F2> Electronics 9 1,946
*Samsung
Engineering &
Construction
Company<F2> Engineering and
construction 608 20,174
*Samsung
Engineering &
Construction
Company
(New)<F2> Engineering and
construction 799 26,512
See Notes to Portfolio of Investments
<PAGE>
Worldwide Growth Portfolio
Portfolio of Investments - September 30, 1995 (continued)
(Unaudited)
Number
Company Description of Shares Value
TAIWAN: 1.8%
*ROC Taiwan
Fund<F2> Multi-industry 6,000 $63,750
THAILAND: 4.4%
*Bangkok Bank
Company
Ltd.<F2> Banking 5,800 47,611
Industrial Finance
Corporation
of Thailand Financial services 18,000 55,230
Matichon Public
Company Limited Publishing 8,000 36,661
*Singer Thailand
Public Company
Limited<F2> Home appliances 1,800 15,206
TURKEY: 0.9%
Netas TelekomunikTelecommunications 80,000 31,116
UNITED STATES: 1.0%
Capco Automotive
Products
Corporation Automotive parts 4,000 37,000
VENEZUELA: 1.2%
C.A. La
Electricidad
de Caracas Electric utility 49,725 43,584
TOTAL COMMON STOCKS AND EQUIVALENTS
(Cost $3,066,610)<F3> 2,701,202
PREFERRED STOCKS: 12.8% of Net Assets
BRAZIL: 10.5%
Companhia Acos
Especiais Itabira,
ADR<F4> Steel 5,325 80,859
*Compania
Siderurgica
Paulista,
Series B<F2> Steel 45,000 80,273
Iochpe Maxion
S.A., ADR<F4> Tractor and
automobile parts 5,000 41,183
Petroleo Brasileiro
S.A. Oil and gas 930,000 97,099
Telecomunicacoes
Brasileiras,
S.A., ADR<F4> Telecommunications 1,500 70,510
SOUTH KOREA: 2.4%
Samsung Electronics
Company Electronics 604 69,434
*Samsung Electronics
Company
(New)<F2> Electronics 119 13,680
TOTAL PREFERRED STOCKS AND EQUIVALENTS
(Cost $455,519)<F3> 453,038
CONVERTIBLE CORPORATE BONDS: 1.5% of Net Assets
PHILIPPINES
Bacnotan
Consolidated
Industries,
Inc., 5.5%,
6/21/04 (144A)
(Cost
$50,000)<F3> Building materials 50,000 51,250
REPURCHASE AGREEMENT: 8.5% of Net Assets
With Donaldson, Lufkin & Jenrette Securities Corporation
issued 9/29/95 at 6.25%, due 10/2/95
collateralized by a $306,038 United States
Treasury Bill due 11/16/95. Total proceeds
at maturity are $300,156.
(Cost $300,000)<F2> 300,000
TOTAL INVESTMENTS (Cost $3,872,129) <F3> $3,505,490
See Notes to Portfolio of Investments
Worldwide Growth Portfolio
Portfolio fo Investments - September 30, 1995 (continued)
(Unaudited)
Notes to Portfolio of Investments
[FN]
<F1># Securities acquired through a rights or bonus stock
issue that are restricted as to resale:
Date Value
Acquired Cost (Note 1)
SECURITY (0.06% of Net Assets)
Samsung Electronics
Company (New Line),
Common 7/10/95 $990 $1,946
K Wah International
Holdings, Warrants
12/31/97 9/20/95 -- --
Total $1,946
<F2>*Non-income producing
<F3>Aggregate cost for federal income tax purposes is
$3,872,129 at September 30, and the net
unrealized depreciation is $366,639 comprised of gross
unrealized appreciation of $287,692
and gross unrealized depreciation of $654,331.
<F4>ADR American Depository Receipt
<F5>GDR Global Depository Receipt
<F6>144A Securities are exempt from registration under Rule 144A
of the Securities Act of 1933. These
securities may be resold in transactions exempt from
registration, normally to qualifiedinstitutional buyers. At
September 30, 1995 these securities amounted to $75,347 or
2.1% of net assets.
The Notes to Financial Statements are an integral part of these statements.
Worldwide Growth Portfolio
Statement of Assets and Liabilities
September 30, 1995
(Unaudited)
ASSETS
Investments, at value (Notes 1 and 2)
Cost $3,872,129)
Investment securities $3,205,490
Repurchase agreement 300,000
Total investments 3,505,490
Cash 4,187
Receivables
Investment securities sold 51,272
Dividends and interest 5,509
Capital shares sold 14,784
Other assets 2
Total assets 3,581,244
LIABILITIES
Investment securities purchased 52,980
Total liabilities 52,980
NET ASSETS (Note 5) $3,528,264
CAPITAL SHARES OUTSTANDING 361,352
NET ASSET VALUE PER SHARE $9.764
Worldwide Gorwth Portfolio
Statement of Operations
For the Six Months Ended September 30, 1995
(Unaudited)
INVESTMENT INCOME (Note 1)
Interest income $21,150
Dividend income (Net of foreign tax of $2,359) 36,416
Total income 57,566
EXPENSES (Notes 3 and 4)
Investment advisory fee 24,877
Custodian fees 12,211
Professional fees 2,061
Salaries and related expenses 6,548
Securities registration and blue sky expense 4,948
Telephone expense 388
Data processing and office equipment expense 8,378
Office and miscellaneous expenses 2,299
Depreciation and amortization 211
Investment advisory fee waived (18,690)
Total expenses 43,231
NET INVESTMENT INCOME 14,335
REALIZED AND UNREALIZED GAIN (LOSS) FROM
INVESTMENTS AND FOREIGN CURRENCY
Net realized loss on investments (309,069)
Net realized gain on foreign currency transactions 952
Net unrealized appreciation of investments 787,198
Net unrealized appreciation on foreign
currency transactions 6
NET GAIN FROM INVESTMENTS AND FOREIGN CURRENCY 479,087
TOTAL INCREASE IN NET ASSETS RESULTING
FROM OPERATIONS $493,422
The Notes to Financial Statements are an integral part of these statements.
<PAGE>
Worldwide Growth Portfolio
Statements of Change in Net Assets
INCREASE (DECREASE) IN NET ASSETS
RESULTING FROM OPERATIONS
Net investment income $14,335 $8,510
Net realized gain (loss)
on investments (309,069) 12,222
Net realized gain (loss) on
foreign currency transactions 952 (4,875)
Net unrealized appreciation
(depreciation) 787,204 (1,056,140)
Total increase (decrease)
in net assets resulting from
operations 493,422 (1,040,283)
DISTRIBUTIONS TO SHAREHOLDERS
From net investment income -- (9,688)
From net capital gains -- (431,663)
CAPITAL SHARE TRANSACTIONS
(Note 7) (284,142) 1,274,473
TOTAL INCREASE (DECREASE)
IN NET ASSETS 209,280 (207,161)
NET ASSETS
Beginning of period 3,318,984 3,526,145
End of period $3,528,264 $3,318,984
Worldwide Growth Portfolio
Financial Highlights
Selected data for a share outstanding throughout each
period:
1993 1994 1995<F1>
Net asset value
beginning of
period $10.000 $12.511 $8.501
Net investment
income (loss) $0.035) $0.022 $0.040
Net realized &
unrealized
gains
(losses) on
securities $2.546 $(2.491) $1.223
Total from
investment
operations $2.511 $(2.469) $1.263
Distributions
from net
investment
income -- $(0.025) --
Distributions
from capital
gains -- $(1.516) --
Total
distribu-
tions -- $(1.541) --
Net asset
value end
of period $2.511 $8.501 $9.764
Total return 26.19%<F2> (22.20)% $29.71%<F2>
Net assets end
of year
(thousands) $3,526 $3,319 $3,528
Ratio of
expenses
to average
net assets<F4> 1.81%<F2> 2.05% $2.32<F2>%
Ratio of net
investment
income to
average net
assets<F4> (0.48%)<F2>$0.21% $0.77%<F2>
Portfolio
turnover 83% 65% 39%
[FN]
<F1>Six months ended September 30, 1995 (unaudited)
<F2>Annualized
<F3>For the period from April 16, 1993 (inception) to March
31, 1994
<F4>Had BFIMC not waived advisory fees, the Portfolio's
annualized ratios of expenses and net investment loss to
average net assets for the six months ended September 30,
1995 would have been 3.32% and (0.23)%, respectively. Had
BFIMC not waived the advisory fee and deferred a portion of
the operating expenses, the Portfolio's annualized ratios of
expenses and net investment loss to average net assets would
have been 3.05% and (0.79)% for the year ended March 31,
1995 and 4.24% and (2.92)% for the period ended March 31,
1994.
The Notes to Financial Statements are an integral part of
these statements.
<PAGE>
Worldwide Growth Portfolio
Notes to Financial Statements
September 30, 1995
(Unaudited)
1. Summary of Significant Accounting Policies. GIT Equity
Trust (the "Trust") is registered with the Securities and
Exchange Commission under the Investment Company Act of 1940
as an open-end, diversified investment management company.
The Trust offers shares in four separate portfolios which
invest in differing securities (under policies described in
their respective prospectuses). The Worldwide Growth
Portfolio (the "Portfolio") invests primarily in foreign
equity securities, emphasizing companies that are likely to
benefit from the growth of the world's smaller and emerging
capital markets. The Special Growth, Select Growth and
Equity Income Portfolios are managed independently from the
Worldwide Growth Portfolio and issue separate semi-annual
and annual financial reports to shareholders.
Securities Valuation: Securities traded on a securities
exchange are valued at their closing sale price, if
available, and if not available, such securities are valued
at the mean between their bid and asked prices. Other
securities, for which current market quotations are readily
available, are valued at the mean between their bid and
asked prices. Securities for which current market
quotations are not readily available are valued at their
fair value as determined in good faith by the Trustees.
Securities whose prices are quoted in foreign currency are
normally translated into U.S. dollars based on exchange
rates at 1 p.m., Washington, D.C. time. The portfolio does
not isolate that portion of the results of operations
resulting from changes in foreign exchange rates on
investments from the fluctuations arising from changes in
market prices of securities held. Such fluctuations are
included with net realized and unrealized gain or loss on
investments. Investment transactions are recorded on the
trade date. The cost of investments sold is determined on
the identified cost basis for financial statement and
federal income tax purposes. Repurchase agreements are
valued at amortized cost, which approximates market value.
Forward Foreign Currency Contracts: The Portfolio may enter
into forward foreign currency contracts in order to hedge
against foreign currency risk. Such contracts have been
used solely to establish a rate of exchange for settlement
of transactions. Forward foreign currency contracts are
valued at the forward rate and are marked-to-market daily.
The change in market value is recorded by the Portfolio as
an unrealized gain or loss. Realized gains or losses are
recognized when contracts settle. Although forward foreign
currency contracts limit the risk of loss due to a decline
in the value of the hedged currency, they also limit any
potential gain that might result should the value of the
currency increase. In addition, the Portfolio could be
exposed to risks if the counter parties to the contracts are
unable to meet the terms of their contracts.
Investment Income: Interest and other income (if any) is
accrued as earned. Dividend income is recorded on the ex-
dividend date, except that if the ex-dividend date has
passed, certain dividends from foreign securities are
recorded as soon as the Portfolio is informed of the ex-
dividend date.
Dividends and Income Tax: Substantially all of the Trust's
accumulated net investment income, determined as gross
investment income less accrued expenses, is declared as a
regular dividend and distributed to shareholders at least
twice annually at calendar and fiscal year end. Capital
gains distributions reflecting net realized gains of the
portfolio, if any, are declared and paid twice annually at
calendar and fiscal year end. In accordance with the
provisions of Subchapter M of the Internal Revenue Code
applicable to regulated investment companies, all of the
taxable income of each portfolio is distributed to its
shareholders, and therefore no federal income tax provision
is required.
Share Subscriptions: Shares purchased by check or otherwise
not paid for in immediately available funds are accounted
for as share subscriptions receivable and shares reserved
for subscriptions.
2. Investments in Repurchase Agreements. When the Trust
purchases securities under agreements to resell, the
securities are held for safekeeping by the Trust's custodian
bank as collateral. Should the market value of the
securities purchased under such an agreement decrease below
the principal amount to be received at the termination of
the agreement plus accrued interest, the counterparty is
required to place an equivalent amount of additional
securities in safekeeping with the Trust's custodian bank.
Repurchase agreements may be terminated within seven days.
Pursuant to an Exemptive Order issued by the Securities and
Exchange Commission, the Trust, along with other registered
investment companies having Advisory and Services Agreements
with Bankers Finance Investment Management Corp. ("BFIMC"),
transfers uninvested cash balances into a joint trading
account. The aggregate balance in this joint trading
account is invested in one or more consolidated repurchase
agreements whose underlying securities are U.S. Treasury or
federal agency obligations.
<PAGE>
Notes to Financial Statements (continued)
3. Investment Advisory Fees and Other Transactions with
Affiliates. The Investment Adviser to the Trust, BFIMC,
earns an advisory fee equal to 1.00% per annum of the
average net assets of the Portfolio; the fee accrues daily
and is payable monthly. For the six months ended September
30, 1995, BFIMC waived $18,690 of such fee from the
Portfolio. In order to meet the securities registration
requirements of certain states, BFIMC has undertaken to
reimburse the Portfolio by the amount, if any, by which the
total expenses of the Portfolio (less certain excepted
expenses) exceed the applicable expense limitation in any
state or other jurisdiction in which the Trust is subject to
regulation during the fiscal year. The Trust believes the
current applicable expense limitation is 2.50% per annum of
the average net assets of each portfolio up to $30 million,
2.00% of any amount of such net assets exceeding $30
million but not exceeding $100 million, and 1.50% per annum
of such amount in excess of $100 million. BFIMC is
responsible for the fees and expenses of trustees who are
affiliated with BFIMC, the rent expense of the Trust's
principal executive office premises and certain promotional
expenses. For the six months ended September 30, 1995, $750
of fees were paid. Certain officers, trustees, companies
and individuals affiliated with the Trust have investments
in the Trust aggregating 8.0% of net assets.
4. Other Expenses. With the exception of certain expenses of
the Trust payable by it directly, all support services are
provided to the Trust under a services agreement between the
Trust and BFIMC, pursuant to which such services are to be
provided for amounts not exceeding the cost to BFIMC of the
support provided. For the six months ended September 30,
1995, expenses of $37,094 have been reimbursed to BFIMC
under the services agreement. As of September 30, 1995,
expenses of $10,922 have been incurred by BFIMC on behalf of
the Portfolio, the billing of which has been deferred.
5. Net Assets. At September 30, 1995, net assets include the
following:
Net paid in capital on shares
of beneficial interest $4,213,284
Undistributed net investment income 14,335
Net undistributed realized loss (332,722)
Net unrealized depreciation of investments (366,633)
Total net assets $3,528,264
6. Investment Transactions. Purchases and sales of
securities other than short-term securities for the six
months ended September 30, 1995 were $1,435,563 and
$1,536,066, respectively.
7. Capital Share Transactions. An unlimited number of
capital shares, without par value, are authorized.
Transactions in capital shares for the following periods
were as follows:
Six Months Ended
Sept. 30, 1995 Year Ended
(Unaudited) March 31, 1995
In Dollars
Shares sold $610,241 $3,109,192
Shares issued in
reinvestment of dividends -- 399,120
Total shares issued 610,241 3,508,312
Shares redeemed (894,383) (2,233,839)
Net increase (decrease) $(284,142) $1,274,473
In Shares
Shares sold 64,936 275,640
Shares issued in
reinvestment of dividends -- 37,227
Total shares issued 64,936 312,867
Shares redeemed (94,011) (204,278)
Net increase (decrease) (29,075) 108,589
