MANAGERS INCOME EQUITY FUND
MANAGERS CAPITAL APPRECIATION FUND
MANAGERS SPECIAL EQUITY FUND
MANAGERS INTERNATIONAL EQUITY FUND
______________________
SEMI-ANNUAL REPORT
JUNE 30, 1996
______________________
Where Leading Money Managers Converge
MANAGERS INCOME EQUITY FUND
MANAGERS CAPITAL APPRECIATION FUND
MANAGERS SPECIAL EQUITY FUND
MANAGERS INTERNATIONAL EQUITY FUND
SEMI-ANNUAL REPORT
June 30, 1996 (unaudited)
TABLE OF CONTENTS
Page
President's Message 1
The Managers Funds Performance 3
Schedule of Portfolio Investments:
Managers Income Equity Fund 4
Managers Capital Appreciation Fund 8
Managers Special Equity Fund 11
Managers International Equity Fund 16
Statements of Assets and Liabilities 23
Statements of Operations 24
Statements of Changes in Net Assets 25
Financial Highlights:
Managers Income Equity Fund 27
Managers Capital Appreciation Fund 28
Managers Special Equity Fund 29
Managers International Equity Fund 30
Notes to Financial Statements 31
Investments in The Managers Funds are not deposits or
obligations of, or guaranteed or endorsed by, any bank. Shares
of the funds are not federally insured by the Federal Deposit
Insurance Corporation, the Federal Reserve Board, or any other
governmental agency.
PRESIDENT'S MESSAGE
Dear Fellow Shareholder:
As the U.S. economy continued to show strength in the first half
of 1996, stocks again climbed higher while bonds traded
lower (and interest rates rose) due to fears that inflation would
follow closely behind strong economic growth. International
stock markets also moved higher in general while foreign bond
markets were mixed, and the U.S. Dollar appreciated versus most
foreign currencies.
Gross Domestic Product (GDP) adjusted for inflation grew at a
2.2% rate in the first quarter, up from 0.5% in the fourth
quarter of 1995. Although the consensus clearly was that second
quarter growth was even stronger, signals of continued growth are
mixed, particularly as corporations begin to announce their
quarterly earnings. Although fiscal expenditures, real capital
spending, residential construction and most notably consumer
spending, which accounts for 2/3rds of GDP, all continued to
increase in the first half, consumer debt has reached record
levels. Interest payments as a percentage of disposable personal
income and loan delinquencies are high and rising, and personal
bankruptcies are also near record highs, suggesting that
consumers must soon take a pause. In addition, it is clearly the
Federal Reserve Bank's (the "Fed") priority to maintain price
stability rather than to induce economic growth.
The equity market began the year poorly by falling more in
the first seven trading days (S&P 500 _2.8%) than in any
correction during 1995. Investors, however, have become
increasingly comfortable with buying on weakness and continued to
pour money into equity mutual funds, which helped drive the
market higher in both the first and second quarters. Large
capitalization stocks like those represented in the Dow Jones
Industrial Average (DJIA) lead the market, in the first quarter
before flattening out in the second quarter for a total return of
+11.7% for the first six months. Conversely, smaller
capitalization stocks, and high technology issues surged in April
and May as investors' appetite for high growth companies resumed.
Although these types of stocks corrected in June, as doubts about
the sustainability of their growth surfaced, they still provided
solid returns for the six-month period. The NASDAQ Composite
Index, which represents stocks which trade over-the-counter, and
is heavily weighted in technology issues, returned +12.9% for the
first six months of 1996.
The swift rotation of leadership continued as in 1995. In the
first quarter, financial stocks, particularly those of brokerage
and financial services firms which benefited from the strong
underwriting markets, performed well. The strongest sector during
the first quarter was basic materials stocks as a result of
mining issues benefiting from the sharp rise in the price of
gold. Oil related stocks were strong as well as airlines which
were reporting record earnings. However, the financial and basic
materials sectors were among the weakest performers in the second
quarter while technology stocks surged.
International equity markets also moved higher, in local
currency terms, throughout the first half of the year. Although
British stocks have languished, with the Financial Times 100
Index up only +0.6% for the year to date, most European bourses
returned between +10 and +15%. The Nikkei Index in Tokyo, rose
+13.4%, while the other Pacific markets were strong in the first
quarter but traded off slightly during the second quarter.
The U.S. Dollar (USD) rose against most foreign currencies,
continuing a trend started in mid- 1995. Over the past twelve
months, the USD has appreciated +28.2% versus the Yen from 85 to
109, and +9.3% versus the Deutsche Mark. This is especially
impressive given the very low level of inflation abroad, and
partly diminishes reasons for a Fed rate hike.
Looking forward, we expect the markets to continue to be volatile
and short-term oriented as investors react to the daily flow of
news and statistics about the economy, inflation, and individual
corporate earnings. As the financial markets become ever more
complex and fast-paced, we believe that The Managers Funds
philosophy of selecting and combining a variety of the best
investment managers, each with a specific, well-defined
investment discipline, becomes ever more advantageous.
This report provides you with a listing of the investment
portfolios, and financial statements for our equity funds, as
well as the performance results for all of the funds in The
Managers Funds family as of June 30, 1996.
We are pleased to announce that The Managers Funds, L.P. has
recently retained the services of Towers Perrin as our consultant
to assist us in the selection and monitoring of the portfolio
managers utilized by The Managers Funds. As always, should you
have any questions on this report, please feel free to contact us
at (800) 835-3879, or your financial advisor.
We thank you for your continued investment in The Managers
Funds.
Sincerely,
Robert P. Watson
President
THE MANAGERS FUNDS PERFORMANCE (UNAUDITED)
All periods ending June 30, 1996
Since Inception Morningstar
6 Months 1 Year 3 Years 5 Years 10 Years Inception Date Rating**
Equity Funds:
Income Equity
Fund 5.89% 22.27% 15.00% 14.93% 11.57% 14.26% Oct. '84 ####
Capital Appreciation
Fund 6.74 19.59 15.85 15.95 13.05 15.56 Jun. '84 ####
Special Equity
Fund 17.97 39.91 19.49 20.77 15.21 16.67 Jun. '84 #####
InternationalEquity
Fund 6.55 14.97 15.42 14.97 11.70 14.41 Dec. '85 ###
Income Funds:
Short Government
Fund 0.78 4.38 1.81 3.45 _ 5.15 Oct. '87 #
Short & Intermediate
Bond Fund 0.41 6.46 3.17 6.99 7.07 8.60 Jun. '84 ####
Intermediate Mortgage
Fund -1.16 3.99 -4.29 3.76 6.77 7.02 May '86 ##
Bond Fund -3.69 4.98 6.91 9.54 9.11 11.07 Jun. '84 ####
Global Bond
Fund -1.56 -0.11 _ _ _ 6.40 Mar. '94 NA
Money Market
Fund 2.72 5.22 4.20 3.86 5.50 5.93 Jun. '84 NA
Past performance is no guarantee of future results. Investment
returns and share price will fluctuate. The redemption price of a
mutual fund may be more or less than the purchase price. For
additional or more recent information on the Managers Funds, or
for a prospectus, call The Managers Funds at (800) 835-3879.
* Total return equals income yield plus share price change and
assumes reinvestment of all dividends and capital gain
distributions. No adjustment has been made for taxes payable by
shareholders on their reinvested dividends and capital gain
distributions. Returns for periods greater than one year are
annualized.
**Morningstar proprietary ratings reflect historical risk-
adjusted performance through 6/30/96 and are subject to change
every month. The ratings are by asset class and are calculated
from the funds' three-, five-, and ten-year returns (with fee
adjustments) in excess of 90-day Treasury bill returns, and a
risk factor that reflects fund performance below 90-day T-bill
returns. For the three-, five-, and ten-year periods,
respectively, each of the Equity Funds was rated against 1,583,
997 and 539 equity funds, and each of the Income Funds was rated
against 889, 464 and 176 fixed income funds. Ten percent of the
funds in each asset class receive five stars, 22.5% receive 4
stars, 35% receive 3 stars, 22.5% receive 2 stars and 10% receive
1 star.
MANAGERS INCOME EQUITY FUND
SCHEDULE OF PORTFOLIO INVESTMENTS
June 30, 1996 (unaudited)
Shares Value
COMMON STOCKS - 94.5%
BASIC INDUSTRIES - 9.3%
Allegheny Ludlum Corp. 5,000* $94,375
Betz Laboratories, Inc. 7,600 333,450
Dow Chemical Co. 10,200 775,200
DSM NV Sponsored ADR 5,000 125,000
E.I. duPont de
Nemours & Co., Inc. 5,100 403,538
Freeport McMoRan Copper &
Gold, Inc., Class A 8,400 250,950
Georgia-Pacific Corp. 3,100 220,100
Kimberly-Clark Corp. 4,800 370,800
Lubrizol Corp. 3,900 118,462
Olin Corp. 2,000 178,500
Oregon Steel Mills, Inc. 13,300 182,875
Phelps Dodge Corp. 1,800 112,275
Potlatch Corp. 2,100 82,163
Stone Container Corp. 7,200 99,000
Union Camp Corp. 2,600 126,750
Westvaco Corp. 4,000 119,500
Weyerhaeuser Co. 6,300 267,750
Witco Corp. 8,700 299,062
TOTAL BASIC INDUSTRIES 4,159,750
CAPITAL GOODS - 0.7%
Cooper Industries, Inc. 1,400 58,100
Duracell International, Inc. 1,100 47,438
PACCAR, Inc. 1,200 58,500
Philips Electronics NV ADR 3,200 104,400
Timken Company 1,500 58,125
TOTAL CAPITAL GOODS 326,563
COMMUNICATION SERVICES - 9.7%
ALLTEL Corp. 8,500 261,375
Bell Atlantic Corp. 8,100 516,375
GTE Corp. 19,400 868,150
Hong Kong
Telecommunications ADR 6,300 113,400
NYNEX Corp. 18,600 883,500
Pacific Telesis Group 18,800 634,500
Royal PTT Nederland NV
ADR 7,400 $279,350
Sprint Corp. 5,500 231,000
Tele Danmark A/S ADR 4,500 114,187
U.S. West Communications
Group 13,800 439,875
TOTAL COMMUNICATION SERVICES 4,341,712
CONSUMER BASICS - 9.8%
American Brands, Inc. 9,300 421,988
Anheuser-Busch Co., Inc. 3,700 277,500
Clorox Co. 2,300 203,837
General Mills, Inc. 4,600 250,700
Hanson PLC ADR 10,000 142,500
Heinz (H.J.) Co. 13,100 397,913
Philip Morris Cos., Inc. 10,200 1,060,800
Quaker Oats Co. 4,000 136,500
RJR Nabisco Holdings Corp. 5,440 168,640
Tambrands, Inc. 13,700 559,987
Unilever NV 600 87,075
UST, Inc. 8,800 301,400
Warner Lambert Co. 6,600 363,000
TOTAL CONSUMER BASICS 4,371,840
CONSUMER DURABLE GOODS - 2.3%
Dana Corp. 4,400 136,400
Ford Motor Co. 7,000 226,625
Genuine Parts Co. 3,000 137,250
TRW, Inc. 6,000 539,250
TOTAL CONSUMER DURABLE GOODS 1,039,525
CONSUMER NON-DURABLES - 4.1%
Avon Products, Inc. 5,000 225,625
J.C. Penney Co., Inc. 17,100 897,750
May Department Stores Co. 2,500 109,375
Rite Aid Corp. 9,400 279,650
Sears, Roebuck & Co. 6,400 311,200
TOTAL CONSUMER NON-DURABLES 1,823,600
ENERGY - 10.7%
Amoco Corp. 2,800 202,650
Atlantic Richfield Co. 5,700 675,450
Chevron Corp. 6,200 365,800
Dresser Industries, Inc. 7,600 224,200
Elf Aquitaine ADR 6,941 255,082
Exxon Corp. 8,400 729,750
Lyondell Petrochemical Co. 8,400 202,650
Murphy Oil Corp. 5,300 240,488
Pennzoil Co. 3,500 161,875
Repsol SA ADR 3,700* 128,575
Royal Dutch Petroleum
Co. ADR 1,800 276,750
Texaco, Inc. 8,800 738,100
Total SA ADR 7,405 274,911
YPF Sociedad Anonima,
Class D ADR 12,500 281,250
TOTAL ENERGY 4,757,531
FINANCE AND INSURANCE - 17.3%
Allstate Corp. 3,530 161,056
American General Corp. 8,700 316,462
Banc One Corp. 11,450 389,300
Bankers Trust
New York Corp. 4,900 361,988
Boatmens Bancshares, Inc. 4,600 183,425
Chase Manhattan Corp. 4,400 310,750
Corestates Financial Corp. 14,400 554,400
EXEL Ltd. 3,400 239,700
Federal National Mortgage
Association 9,400 314,900
First Bank Systems, Inc. 4,900 284,200
First Union Corp. 6,000 365,250
Great Western Financial
Corp. 7,800 186,225
Hartford Steam Boiler
Inspection & Insurance Co. 2,200 108,075
H.F. Ahmanson & Co. 7,100 191,700
J.P. Morgan & Co., Inc. 11,000 930,875
KeyCorp 3,100 120,125
Lincoln National Corp. 13,500 624,375
Marsh and McLennan
Companies, Inc. 3,100 299,150
Mellon Bank Corp. 10,450 595,650
National City Corp. 1,400 49,480
PNC Bank Corp. 16,200 481,950
Student Loan Marketing
Association 7,300 540,200
U.S. Bancorp 1,400 50,400
Wachovia Corp. 1,100 48,125
TOTAL FINANCE AND INSURANCE 7,707,761
GENERAL BUSINESS - 3.0%
Deluxe Corp. 10,200 362,100
Dun & Bradstreet Corp. 10,300 643,750
H & R Block, Inc. 7,000 228,375
Reader's Digest Association,
Inc., Class A 2,200 93,500
TOTAL GENERAL BUSINESS 1,327,725
HEALTH CARE - 7.0%
American Home
Products Corp. 7,300 438,912
Bausch & Lomb, Inc. 8,500 361,250
Baxter International, Inc. 7,400 349,650
Bristol-Myers Squibb Co. 10,600 954,000
Eli Lilly & Co. 3,400 221,000
Schering-Plough Corp. 6,300 395,325
SmithKline Beecham
Unit PLC ADR 2,800 152,250
Zeneca Group PLC ADR 3,800 255,550
TOTAL HEALTH CARE 3,127,937
REAL ESTATE - 2.8%
DeBartolo Realty Corp. 8,400 135,450
Developers Diversified
Realty Corp. 1,600 51,000
Equity Residential
Properties Trust 5,900 193,963
Health Care Property
Investors, Inc. 7,400 249,750
Meditrust 7,700 256,987
Nationwide Health
Properties, Inc. 13,200 278,850
Security Capital Industrial
Trust 5,500 96,938
TOTAL REAL ESTATE 1,262,938
TECHNOLOGY - 4.9%
Lockheed Martin Corp. 4,242 356,328
Northrop Grumman Corp. 500 34,063
Rockwell International Corp. 6,000 343,500
Teledyne, Inc. 1,100 39,737
Thomas & Betts Corp. 6,400 240,000
United Technologies Corp. 3,900 448,500
Xerox Corp. 13,500 722,250
TOTAL TECHNOLOGY 2,184,378
TRANSPORTATION - 0.6%
Canadian National
Railway Co. (a) 7,300 134,138
Union Pacific Corp. 1,900 132,762
TOTAL TRANSPORTATION 266,900
UTILITIES - 10.4%
Baltimore Gas &
Electric Co. 15,300 434,138
Central & South West Corp. 13,700 397,300
Cinergy Corp. 3,300 105,600
Consolidated Natural Gas Co. 3,900 203,775
National Power PLC ADR 6,600* 160,875
NICOR, Inc. 10,300 292,262
Northeast Utilities 18,000 240,750
Oklahoma Gas & Electric Co. 3,800 150,575
Pacific Gas & Electric Co. 5,200 120,900
PacifiCorp 3,700 82,325
PECO Energy Co. 4,600 119,600
Powergen PLC ADR 6,300* 130,725
PP & L Resources, Inc. 8,400 198,450
Public Service Enterprise Group 13,700 375,038
Southern Co. 4,100 100,962
Texas Utilities Co. 9,600 410,400
Unicom Corp. 6,500 181,188
Union Electric Corp. 9,700 390,425
Western Resources, Inc. 5,100 152,362
Wisconsin Energy Corp. 13,400 386,925
TOTAL UTILITIES 4,634,575
MISCELLANEOUS - 1.9%
S&P 500 Depositary
Receipt 12,900* 865,509
TOTAL COMMON STOCKS
(cost $34,651,768) 42,198,244
PREFERRED STOCKS - 1.3%
BASIC INDUSTRIES - 0.5%
Boise Cascade Corp.,
Series G, $1.58 7,600 231,800
CONSUMER BASICS - 0.5%
FHP International Corp.,
Convertible, Series
A, $1.25** 8,200 206,025
CONSUMER NON-DURABLE - 0.3%
Kmart Financing I,
Convertible, $3.88** 2,500 135,625
TOTAL PREFERRED STOCKS
(cost $575,646) 573,450
Principal
Amount Value
Repurchase Agreement - 9.1%
State Street Bank, dated 06/28/96, due 07/01/96,
4.900%, total to be received $4,061,658 (secured
by $4,045,000 U.S. Treasury Bonds, 7.125%,
due 02/15/23, market value $4,147,743),
at cost $4,060,000 $4,060,000
TOTAL INVESTMENTS - 104.9%
(cost $39,287,414) 46,831,694
OTHER ASSETS, LESS
LIABILITIES - (4.9%) (2,185,794)
NET ASSETS - 100.0% $44,645,900
Note: Based on the cost of investments of $39,358,249 for
Federal income tax purposes at June 30, 1996, the aggregate
gross unrealized appreciation and depreciation was $7,909,162
and $435,717, respectively, resulting in net unrealized
appreciation of investments of $7,473,445.
* Some or all of these shares, amounting to $1,410,300, or
3.2% of net assets, were out on loan to various brokers as of
June 30, 1996.
** Stated rate is annualized based on the last quarterly
dividend paid.
(a)Security exempt from registration under Rule 144A of the
Securities Act of 1933. These securities may
be resold in transactions exempt from registration, normally
to qualified buyers. At June 30, 1996, the value of these
securities amounted to $134,138, or 0.3% of net assets.
INVESTMENT ABBREVIATIONS:
ADR: Securities whose value is determined or significantly
influenced by trading on exchanges not located in the United
States or Canada. ADR after the name of a holding stands for
American Depositary Receipt, representing ownership of
foreign securities on deposit with a domestic custodian bank.
The accompanying notes are an integral part of these
financial statements.
MANAGERS CAPITAL APPRECIATION FUND
SCHEDULE OF PORTFOLIO INVESTMENTS
June 30, 1996 (unaudited)
Shares Value
COMMON STOCKS - 86.8%
BASIC INDUSTRIES - 5.5%
Avery Dennison Corp. 9,000 $493,875
A. Schulman, Inc. 12,900 312,825
Crompton & Knowles Corp. 84,300** 1,412,025
FMC Corp.* 11,800 769,950
Minerals Technologies Inc. 13,000 445,250
Olin Corp. 4,500 401,625
Texas Industries, Inc. 6,500 446,063
Witco Corp. 26,000 893,750
TOTAL BASIC INDUSTRIES 5,175,363
CAPITAL GOODS - 1.6%
Anixter International Inc.* 80,400 1,195,950
UCAR International, Inc.* 8,200 341,325
TOTAL CAPITAL GOODS 1,537,275
COMMUNICATION SERVICES - 8.1%
AT & T Corp. 6,900 427,800
Cincinnati Bell, Inc. 39,000 2,032,875
Frontier Corp. 13,800 422,625
Glenayre Technologies, Inc.* 4,100 204,487
Loral Space &
Communications Ltd.* 70,100 955,113
Octel Communications
Corp.* 9,600 187,200
Paging Network, Inc.* 40,300 952,087
PictureTel Corp.* 9,100 358,313
Telefonaktiebolaget LM
Ericsson ADR 39,500 844,312
Winstar Communications,
Inc* 50,000 1,237,500
TOTAL COMMUNICATION SERVICES 7,622,312
COMPUTER SOFTWARE - 3.2%
Cadence Design
Systems, Inc.* 22,650 764,438
Computer Associates
International, Inc. 6,900 491,625
Computer Sciences Corp.* 10,500 784,875
Informix Corp.* 38,600 863,675
Parametric Technology Corp.* 3,600 155,700
TOTAL COMPUTER SOFTWARE 3,060,313
CONSUMER BASICS - 1.9%
Dial Corp. 17,000 486,625
Premark International Inc. 40,000 740,000
Tupperware Corp. 12,700 536,575
TOTAL CONSUMER BASICS 1,763,200
CONSUMER DURABLE GOODS - 4.6%
Chrysler Corp. 10,800 669,600
Lear Corp.* 15,300 539,325
TRW, Inc. 2,500 224,687
Varity Corp.* 59,900 2,882,688
TOTAL CONSUMER DURABLE GOODS 4,316,300
CONSUMER NON-DURABLE - 15.5%
Best Buy Company, Inc.* 70,000** 1,601,250
Blyth Industries, Inc.* 40,000 1,815,000
Consolidated Stores Corp.* 21,300 782,775
Eastman Kodak Co. 10,300 800,825
Home Depot, Inc. 9,200 496,800
Home Shopping Network, Inc.* 105,000 1,260,000
Kmart Corp. 100,000 1,237,500
Melville Corp. 23,900 967,950
Mercantile Stores Co., Inc. 9,500 556,937
Micro Warehouse, Inc.* 13,100 255,450
Payless ShoeSource, Inc.* 80,000 2,540,000
Pep Boys
(Manny, Moe & Jack) 26,500 901,000
Quicksilver, Inc.* 23,900 717,000
Tommy Hilfiger Corp.* 13,600 729,300
TOTAL CONSUMER NON-DURABLE 14,661,787
CONSUMER SERVICES - 0.5%
Boston Chicken, Inc.* 14,600** $ 472,675
ENERGY - 5.1%
Burlington Resources, Inc. 12,500 537,500
Compagnie Francaise de
Petroleum Total ADR 13,000 482,625
Enron Corp. 21,600 882,900
Santa Fe Energy
Resources, Inc.* 50,200 596,125
Triton Energy Corp.* 30,700 1,492,788
Union Texas Petroleum
Holdings, Inc. 40,800 795,600
TOTAL ENERGY 4,787,538
ENTERTAINMENT AND LEISURE - 7.6%
Acclaim Entertainment, Inc.* 14,200 136,675
America Online, Inc. 14,200 617,700
Brunswick Corp. 32,500 650,000
Carnival Corp. 1,200 34,650
Comcast Corp., Special
Class A 41,100 750,075
Infinity Broadcasting Corp.* 24,150 724,500
Metromedia International
Group* 29,900 330,370
Tele-Communications, Inc.
Liberty Media Group,
Class A* 35,050 928,825
Tele-Communications, Inc.
TCI, Class A* 62,400 1,123,200
Tribune Company 7,500 544,687
Trump Hotels & Casino
Resorts, Inc.* 7,500 213,750
U.S. West Media Group* 61,100 1,115,075
TOTAL ENTERTAINMENT AND LEISURE 7,169,507
ENVIRONMENTAL CONTROLS - 0.6%
U.S. Filter Corp.* 16,000** 556,000
FINANCE AND INSURANCE - 10.0%
Advanta Corp., Class B 11,200 506,800
Aetna Life & Casualty Co. 8,700 622,050
AFLAC, Inc. 24,300 725,963
Bank of Boston Corp. 14,700 727,650
Chase Manhattan Corp. 7,400 522,625
Citicorp 8,800 727,100
Countrywide Credit
Industries, Inc. 38,900 962,775
Equitable Companies Inc. 37,800 940,275
JSB Financial, Inc. 11,600 384,250
NationsBank Corp. 17,400 1,437,675
Signet Banking Corp. 28,600 664,950
Travelers/Aetna Property
Casualty Corp., Class A* 22,300 632,762
Western National Corp. 32,900 604,538
TOTAL FINANCE AND INSURANCE 9,459,413
GENERAL BUSINESS - 4.7%
CUC International, Inc.* 32,350 1,148,425
Electronic Data Systems Corp. 13,500 725,625
First Data Corp. 18,400 1,465,100
Office Depot, Inc.* 18,000 366,750
R.R. Donnelley & Sons Co. 12,700 442,912
Staples, Inc.* 16,850 326,469
TOTAL GENERAL BUSINESS 4,475,281
HEALTH CARE - 8.4%
Atrix Laboratories, Inc* 20,800 202,800
Johnson & Johnson 14,200 702,900
OrNda Healthcorp.* 44,300 1,063,200
Perrigo Co.* 75,000 843,750
Pharmacia & Upjohn Inc. 50,000 2,218,750
Scherer (R.P.) Corp.* 14,400 653,400
SmithKline Beecham
Unit ADR 13,700 744,937
St. Jude Medical, Inc.* 9,900 329,175
U.S. Healthcare, Inc. 10,350 567,956
Value Health, Inc.* 14,100 333,113
Wellpoint Health Networks,
Inc., Class A* 8,737 273,031
TOTAL HEALTH CARE 7,933,012
TECHNOLOGY - 6.1%
Bay Networks, Inc.* 30,600 787,950
Boeing Co. 8,900 775,412
Cisco Systems, Inc.* 9,700 549,263
KLA Instruments Corp.* 16,700 386,187
Lockheed Martin Corp. 11,400 957,600
Motorola, Inc. 8,500 534,438
Seagate Technology* 17,100 769,500
Silicon Graphics Inc* 25,700 616,800
Xilinx, Inc.* 14,100 445,912
TOTAL TECHNOLOGY 5,823,062
TRANSPORTATION - 3.5%
Canadian Pacific Ltd. 30,100 662,200
Federal Express Corp.* 10,800 885,600
Kansas City Southern Industries 21,600 926,100
Kirby Corp.* 18,900 318,938
Ryder System, Inc. 18,200 511,875
TOTAL TRANSPORTATION 3,304,713
TOTAL COMMON STOCKS
(cost $70,567,066) 82,117,751
Principal
Amount Value
U.S. TREASURY NOTES - 2.7%
U.S. Treasury Notes
7.250%, 11/30/96
(cost $2,498,551) $2,500,000 2,517,575
REPURCHASE AGREEMENT - 12.1%
State Street Bank & Trust Co., dated
06/28/96, due 07/01/96, 4.900%, total
to be received $11,589,731 (secured by
$11,525,000 U.S. Treasury Bonds, 7.125%,
due 02/15/23, market value $11,817,735),
at cost $11,585,000
$11,585,000
TOTAL INVESTMENTS - 101.7%
(cost $84,650,617) 96,220,326
OTHER ASSETS, LESS
LIABILITIES - (1.7%) (1,642,310)
NET ASSETS - 100.0% $94,578,016
Note: Based on the cost of investments of $84,892,519 for
Federal income tax purposes at June 30, 1996, the aggregate
gross unrealized appreciation and depreciation was $13,229,146
and $1,901,339, respectively, resulting in net unrealized
appreciation of investments of $11,327,807.
* Non-income-producing security.
** Some or all of these shares, amounting to $3,205,760, or 3.4%
of net assets, were out on loan to various
brokers as of June 30, 1996.
INVESTMENT ABBREVIATIONS:
ADR: Securities whose value is determined or significantly
influenced by trading on exchanges not located in the United
States or Canada. ADR after the name of a holding stands for
American Depositary Receipt, representing ownership of foreign
securities on deposit with a domestic custodian bank.
The accompanying notes are an integral part
of these financial statements.
MANAGERS SPECIAL EQUITY FUND
SCHEDULE OF PORTFOLIO INVESTMENTS
June 30, 1996 (unaudited)
Shares Value
COMMON STOCKS - 90.3%
BASIC INDUSTRIES - 1.1%
Fibreboard Corp.* 9,400 $259,675
Pittston Burlington
Group, Inc. 70,000 1,513,750
TOTAL BASIC INDUSTRIES 1,773,425
CAPITAL GOODS - 3.5%
AAR Corp. 34,800 709,050
Astec Industries, Inc.* 14,800 129,500
Cable Design Technologies
Corp.* 25,750 843,312
California Amplifier, Inc.* 14,100 317,250
Charter Power Systems, Inc. 5,000 171,250
DT Industries, Inc. 24,300 443,475
Jaco Electronics, Inc.* 22,700 229,838
NN Ball & Roller, Inc. 17,900 358,000
Rogers Corp.* 59,300 1,475,088
Scotsman Industries, Inc. 29,200 587,650
Wolverine Tube, Inc.* 15,900 556,500
TOTAL CAPITAL GOODS 5,820,913
COMMUNICATION SERVICES - 5.6%
ACC Corp.* 8,700 417,600
Arch Communications
Group, Inc.* 24,400 448,350
Aspect Telecommunications
Corp.* 16,000 792,000
Associated Group, Inc.,
Class A* 4,900 144,550
Associated Group, Inc.,
Class B* 15,500 453,375
Cellular Communications
Puerto Rico, Inc.* 7,400 238,650
Centennial Cellular Corp.,
Class A* 51,650 858,681
Communications
Central, Inc.* 64,000 472,000
Davel Communications
Group, Inc.* 40,500 779,625
DSP Communications, Inc.* 10,000 512,500
Octel Communications Corp.* 10,100 196,950
P-COM, Inc.* 15,900 492,900
PictureTel Corp.* 22,200 874,125
Premisys Communications, Inc.* 13,400 817,400
ProNet, Inc.* 42,600 521,850
Sitel Corp.* 23,200 962,800
TCSI Corp.* 17,550 416,812
TOTAL COMMUNICATION SERVICES 9,400,168
COMPUTER SOFTWARE - 6.2%
Acxiom Corp.* 14,200 481,025
Ciber Inc.* 34,800 739,500
Dialogic Corp.* 13,400 797,300
Inso Corp.* 10,700** 545,700
Intergrated Systems, Inc.* 19,300 757,525
JDA Software Group, Inc.* 20,100 409,538
McAfee Associates, Inc.* 31,350 1,536,150
MDL Information
Systems, Inc.* 11,300 333,350
National Data Corp. 13,200 452,100
Project Software & Development, Inc.* 11,900 556,325
Pure Software, Inc.* 12,000 399,000
Rational Software Corp.* 11,900 639,625
Remedy Corp.* 9,300 674,250
Renaissance
Solutions, Inc.* 10,000 275,000
Sapient Corp.* 3,700 152,625
Scopus Technology, Inc.* 21,400 331,700
Veritas Software Corp. 12,800 544,000
Visio Corp.* 12,100 435,600
Wind River Systems* 5,500 189,750
TOTAL COMPUTER SOFTWARE 10,250,063
CONSUMER BASIC - 1.0%
Glacier Water
Services, Inc.* 26,300** 516,137
Midwest Grain
Products, Inc. 20,800** 249,600
Sylvan, Inc.* 37,700 499,525
USA Detergents, Inc.* 10,700 422,650
TOTAL CONSUMER BASIC 1,687,912
CONSUMER DURABLE GOODS - 0.8%
Aaron Rents, Inc., Class B 68,000 858,500
Craftmade International, Inc. 18,500 129,500
Gentex Corp.* 21,400 411,950
TOTAL CONSUMER DURABLE GOODS 1,399,950
CONSUMER NON-DURABLE - 6.5%
American Safety Razor Co.* 45,700 445,575
Blyth Industries, Inc.* 27,700 1,256,888
Cash America
International, Inc. 65,900 428,350
Catherine's Stores Corp.* 50,300 490,425
Freds, Inc., Class A 51,600 561,150
Gadzooks, Inc.* 3,800 121,125
Global DirectMail Corp.* 20,600 813,700
Helen of Troy Ltd.* 28,300 785,325
MacFrugals Bargains
Close-Outs, Inc.* 100,000 1,775,000
Michael Anthony
Jewelers, Inc.* 127,200 421,350
Parlux Fragrances, Inc.* 43,000 424,625
Sunglass Hut
International, Inc.* 21,700 526,225
The Mens Wearhouse, Inc.* 5,000 161,250
TJX Companies, Inc. 20,000 675,000
Tommy Hilfiger Corp.* 24,000 1,287,000
West Marine, Inc.* 8,900 627,450
TOTAL CONSUMER NON-DURABLE 10,800,438
CONSUMER SERVICES - 3.8%
Apple South, Inc. 18,600 495,225
Landry's Seafood
Restaurants, Inc.* 12,100 290,400
Pittston Brinks Group, Inc. 66,100 1,925,163
Protection One, Inc.* 44,800 733,600
Roto-Rooter, Inc. 17,200 593,400
Ruby Tuesday, Inc. 101,000 2,285,125
TOTAL CONSUMER SERVICES 6,322,913
ENERGY - 2.4%
Berry Petroleum
Co., Class A 49,600 564,200
Chesapeake Energy
Corp.* 7,500 674,063
Input/Output, Inc.* 37,800 1,223,775
Tosco Corp. 30,000 1,507,500
TOTAL ENERGY 3,969,538
ENTERTAINMENT AND LEISURE - 3.4%
Emmis Broadcasting Corp.,
Class A* 12,000 594,000
Granite Broadcasting Corp.* 36,800 473,800
Harveys Casino Resorts 34,100 724,625
Houghton Mifflin Co. 43,200 2,149,200
Jones Intercable, Inc.,
Class A* 56,900 746,812
Osborn Communications
Corp.* 61,300 628,325
Platinum Entertainment, Inc.* 27,000 418,500
TOTAL ENTERTAINMENT AND LEISURE 5,735,262
ENVIRONMENTAL CONTROLS - 2.8%
Sanifill, Inc.* 9,200 453,100
Superior Services, Inc.* 14,000 231,000
Tetra Tech, Inc.* 44,219 862,266
United Waste Systems, Inc.* 58,000 1,841,500
URS Corp.* 67,000 527,625
U.S. Filter Corp.* 22,900** 795,775
TOTAL ENVIRONMENTAL CONTROLS 4,711,266
FINANCE AND INSURANCE - 12.0%
Alabama National
Bancorporation 63,000 803,250
Allied Capital Lending
Corp. 50,291 660,069
American Travellers Corp.* 63,150 1,444,556
AT&T Capital Corp. 57,600 2,520,000
Banc One Corp. 36,236 1,232,024
Charter One Financial, Inc. 81,000 2,814,750
ContiFinancial Corp.* 25,900 764,050
First Republic Bancorp, Inc.* 38,956 598,949
First Savings Bank of
Washington Bancorp, Inc. 50,000 768,750
HCC Insurance
Holdings, Inc. 26,550 597,375
Home Financial Corp. 166,400 2,163,200
National Western Life
Insurance Co., Class A* 12,000 801,000
Oxford Resources Corp.,
Class A* 17,300 402,225
Penn-America Group, Inc. 18,500 300,625
Phoenix Duff &
Phelp Corp. 54,300 407,250
Roosevelt Financial
Group, Inc. 95,000 1,828,750
The Money Store, Inc. 34,050 740,587
Washington Mutual, Inc. 22,500 672,188
Western National Corp. 27,700 508,987
TOTAL FINANCE AND INSURANCE 20,028,585
GENERAL BUSINESS - 13.7%
ABM Industries, Inc. 20,900 817,713
AccuStaff, Inc.* 45,900 1,250,775
Alternative Resources
Corp.* 16,100 579,600
American Business
Information* 33,000 585,750
Amplicon, Inc. 34,300 548,800
Career Horizons, Inc.* 15,600 546,000
Chicago Miniature
Lamp, Inc.* 7,300 266,450
Concord EFS, Inc.* 23,450 832,475
Electro Rent Corp.* 70,350 1,670,813
Fair, Issac & Co., Inc. 15,300 677,025
HA _ LO Industries, Inc.* 21,550 560,300
Iron Mountain, Inc.* 25,000 506,250
Kinder Care Learning
Centers, Inc.* 77,500 1,191,562
Manpower, Inc. 46,500 1,825,125
May & Speh, Inc.* 36,300 553,575
Metromail Corp.* 12,500 279,687
National Computer
Systems, Inc. 28,500 598,500
National Education Corp.* 316,600 4,511,550
Steck Vaughn Publishing
Corp.* 125,000 1,500,000
U.S. Office Products Co.* 30,200** 1,260,850
Volt Information
Sciences, Inc.* 40,900 1,789,375
World Fuel Services Corp. 24,000 435,000
TOTAL GENERAL BUSINESS 22,787,175
HEALTH CARE - 10.4%
Acme United Corp.* 73,600 285,200
Advocat, Inc.* 49,700 472,150
Chemed Corp. 22,800 852,150
Coherent, Inc.* 13,400 696,800
Conmed Corp.* 13,100 347,150
Dura Pharmaceuticals, Inc.* 12,800 716,800
Gulf South Medical
Supply, Inc.* 12,200 472,750
Healthsource, Inc.* 9,400 164,500
Hologic, Inc.* 10,600 461,100
Lifeline Systems, Inc.* 25,800 338,625
Living Centers of
America, Inc.* 20,000 687,500
Lunar Corp.* 9,800 338,100
Morrison Health Care, Inc. 7,300 $102,200
Omnicare, Inc. 27,600 731,400
OrNda Healthcorp.* 25,500 612,000
Orthodontic Centers of
America, Inc.* 16,300 423,800
Owens & Minor, Inc. 160,000 1,860,000
Physician Reliance
Network, Inc.* 30,000 667,500
Physician Sales &
Services, Inc.* 23,400 567,450
Physicians Resource
Group, Inc.* 15,900 530,662
Quintiles Transnational
Corp.* 10,400 678,600
Quorum Health
Group, Inc.* 21,000 551,250
Renal Treatment
Centers, Inc.* 37,400 1,075,250
Retirement Care
Associates, Inc.* 32,918** 362,098
Summit Care Corp.* 21,600 475,200
Unilab Corp.* 69,500 108,594
Universal Health Services,
Inc., Class B* 60,000 1,567,500
Veterinary Centers of
America* 15,000** 328,125
Vitalink Pharmacy
Services, Inc.* 36,000 837,000
TOTAL HEALTH CARE 17,311,454
REAL ESTATE - 2.3%
Allied Capital
Commerical Corp. 73,832 1,458,182
Equity Inns, Inc. 60,600 681,750
Health Care Property
Investors, Inc. 18,200 614,250
Presidential Realty Corp.,
Class B 64,458 394,805
ROC Communities, Inc. 26,500 632,688
TOTAL REAL ESTATE 3,781,675
TECHNOLOGY - 7.7%
Alpha Industries, Inc.* 76,000 674,500
Aspen Technologies, Inc.* 8,900 $487,275
Astea International, Inc.* 23,000 557,750
Automated Security Holdings,
PLC ADR* 334,157 375,927
Cambridge Technology
Partners* 57,900 1,765,950
Computer Horizons Corp.* 15,500 608,375
Comverse Technology, Inc.* 36,500 1,113,250
Electronics for Imaging, Inc.* 19,400 1,345,875
Etec Systems, Inc.* 16,400 360,800
ILC Technology, Inc.* 51,000 586,500
Inter-Tel, Inc.* 38,700 1,011,037
Richardson Electronics, Ltd. 29,900 284,050
SDL, Inc.* 19,000 513,000
Sensormatic Electronics
Corp. 147,300** 2,412,038
Uniphase Corp.* 12,800 444,800
Zebra Technologies Corp.,
Class A* 14,000 245,000
TOTAL TECHNOLOGY 12,786,127
TRANSPORTATION - 7.1%
Air Express
International Corp. 62,200 1,726,050
Airborne Freight Corp. 124,000 3,224,000
Atlas Air, Inc.* 18,100 1,043,012
Consolidated Freightways,
Inc. 68,100 1,438,612
Fritz Companies, Inc.* 9,600 307,200
Harper Group, Inc. 150,900 2,942,550
Sea Containers, Ltd., Class A 50,000 950,000
Sea Containers, Ltd., Class B 13,890 270,855
TOTAL TRANSPORTATION 11,902,279
TOTAL COMMON STOCKS
(cost $112,107,647) 150,469,143
PREFERRED STOCKS - 0.2%
COMMUNICATION SERVICES - 0.2%
Cellular Communications, Inc. non-cumulative,
participating preferred*
(cost $227,090) 6,714 $355,003
OTHER INVESTMENT COMPANIES - 0.3%
FINANCE AND INSURANCE - 0.3%
Allied Capital Corp. II,
Closed-End Fund
(cost $550,500) 31,000 550,250
Principal
Amount
REPURCHASE AGREEMENT - 9.6%
State Street Bank, dated 06/28/96, due 07/01/96,
4.900%, total to be received $16,021,539
(secured by $15,935,000 U.S. Treasury Bonds,
7.125%, due 02/15/23, market value $16,339,749),
at cost $16,015,000 16,015,000
TOTAL INVESTMENTS - 100.4%
(cost $128,900,237) 167,389,396
OTHER ASSETS,
LESS LIABILITIES - (0.4%) (704,086)
NET ASSETS - 100.0% $166,685,310
Note: Based on the cost of investments of $128,900,237 for
Federal income tax purposes at June 30, 1996, the aggregate
gross unrealized appreciation and depreciation was
$43,244,974 and $4,755,815, respectively, resulting in an
unrealized appreciation of investments of $38,489,159.
* Non-income-producing security.
** Some or all of these shares, amounting to $5,507,280, or
3.3% of net assets, were out on loan to various brokers as
of June 30, 1996.
INVESTMENT ABBREVIATIONS:
ADR: Securities whose value is determined or significantly
influenced by trading on exchanges not located in the United
States or Canada. ADR after the name of a holding stands for
American Depositary Receipt, representing ownership of foreign
securities on deposit with a domestic custodian bank.
The accompanying notes are an integral part of
these financial statements.
MANAGERS INTERNATIONAL EQUITY FUND
SCHEDULE OF PORTFOLIO INVESTMENTS
June 30, 1996 (unaudited)
Shares Value
COMMON STOCKS - 88.8%
BASIC INDUSTRIES - 15.6%
Alcan Aluminium Ltd.
(Canada) 16,034 $487,952
Aracruz Celulose SA
(Brazil) 157,600 1,497,200
Ashanti Goldfields Co. Ltd.
Sponsored GDR (Ghana) 27,600 545,100
Barrick Gold Corp.
(Canada) 14,500 393,485
Barrick Gold Corp.,
U.S. registered shares
(Canada) 18,600 504,525
BASF AG (Germany) 3,675 1,051,381
Bayer AG (Germany) 42,640 1,507,333
BOC Group PLC
(United Kingdom) 45,200 648,271
Cambior, Inc. (Canada) 18,600 247,946
CIBA Geigy AG, Bearer
shares (Switzerland) 1,365 1,657,391
CIBA Geigy AG, Registered
shares (Switzerland) 1,560 1,902,896
Compagnie De Saint
- -Gobain (France) 14,500 1,942,317
Hitachi Metals Ltd. (Japan) 13,000 149,774
Hoechst AG (Germany) 126,270 4,285,125
Holderbank Financiere Glaris
AG (Switzerland) 1,230 983,843
Homestake Mining Co.
(United States) 27,400 469,225
Impala Platinum Holdings ADR
(South Africa) 24,300 349,317
Kymmene OY* (Finland) 65,240 1,353,650
Lafarge Corp. (United States) 22,400 453,600
Lonrho PLC (United Kingdom) 139,000 399,363
Newmont Mining Corp.
(United States) 14,100 $696,187
Nisshin Steel Co. (Japan) 92,000 357,518
NKK Corp.* (Japan) 396,000 1,202,140
Placer Dome, Inc. (Canada) 42,000 1,024,390
Redland PLC
(United Kingdom) 157,200 971,666
Rhone Poulenc SA,
Class A (France) 74,900 1,965,841
Rhone Poulenc SA,
Non-Negotiable (France) 1,382 30,093
RTZ Corp. PLC
(United Kingdom) 71,890 1,064,003
Rustenburg Platinum
Holdings Ltd. ADR*
(South Africa) 31,276 487,515
Sasol Ltd., Sponsored
ADR (South Africa) 32,034 345,967
Sekisui Chemical Co. (Japan) 130,000 1,592,831
Sumitomo Metal
Industries* (Japan) 226,000 694,335
Sumitomo Metal
Mining Co. (Japan) 116,000 1,006,574
Viag AG (Germany) 710 283,440
Viag AG, New (Germany) 202 77,984
TOTAL BASIC INDUSTRIES 32,630,178
CAPITAL GOODS - 10.6%
ABB AG, Bearer shares
(Switzerland) 1,120 1,386,786
Alcatel Alsthom (France) 41,300 3,605,199
Daewoo Heavy
Industries (South Korea) 26,214 222,328
FLS Industries, Series B
(Denmark) 9,900 997,013
General Electric Co. PLC
(United Kingdom) 165,300 889,524
Hitachi (Japan) 75,000 699,492
Kvaerner AS (Norway) 14,000 592,224
L.G. Electronics, Inc.
GDR, (a)* (South Korea) 1,398 9,651
L.G. Electronics, Inc. GDR
(South Korea) 24,000 165,682
Mannesmann AG
(Germany) 9,457 3,271,544
Mitsubishi Heavy Industries
Ltd. (Japan) 249,000 2,169,771
NSK (Japan) 58,000 439,647
Omron Corp. (Japan) 49,000 1,043,935
Samsung Electronics Ltd.,
GDR represents 1/2
non-voting share, (a)
(South Korea) 20,963 508,353
Samsung Electronics Ltd.,
GDR represents 1/2
non-voting share, (a)*
(South Korea) 683 35,004
Samsung Electronics Ltd.
GDR, (a)* (South Korea) 236 9,663
Samsung Electronics Ltd.
Non-Voting GDR, (a)*
(South Korea) 6,318 126,360
Schindler Holding AG PC
(Switzerland) 340 361,702
Siemens AG (Germany) 48,150 2,574,544
SKF AB* (Sweden) 49,800 1,184,801
SMC Corp. (Japan) 12,000 930,462
Sulzer AG PC (Switzerland) 300 179,971
Sulzer, Registered GDR
(Switzerland) 1,240 797,440
TOTAL CAPITAL GOODS 22,201,096
COMMUNICATION SERVICES - 1.7%
DDI Corporation (Japan) 235 2,054,222
PT Indosat ADR (Indonesia) 17,300 579,550
Telecom Corporation of
New Zealand
(New Zealand) 226,500 953,684
TOTAL COMMUNICATION SERVICES 3,587,456
CONGLOMERATES - 1.2%
Hutchison Whampoa Ltd.
(Hong Kong) 189,000 1,189,063
Jardine Matheson Holdings
Ltd. (Singapore) 83,435 613,247
Jardine Strategic Holdings
Ltd. (Singapore) 118,000 377,600
Sumitomo Corp. (Japan) 37,000 329,521
TOTAL CONGLOMERATES 2,509,431
CONSUMER BASICS - 7.2%
Allied Domec PLC
(United Kingdom) 199,400 1,402,830
Cadbury Schweppes PLC
(United Kingdom) 242,031 1,913,244
Cheil Foods & Chemicals, Inc.,
Preferred (South Korea) 16,000 416,174
Cheil Foods & Chemicals, Inc.
(South Korea) 2,979 194,634
Coca Cola Amatil Ltd.
(Australia) 52,988 588,385
Fosters Brewing GP
(Australia) 712,160 1,225,643
Grand Metropolitan PLC
(United Kingdom) 140,548 932,039
Great Universal Stores PLC
(United Kingdom) 49,100 498,320
Heineken NV (Netherlands) 11,260 2,518,067
Lion Nathan Ltd.
(New Zealand) 146,500 384,015
Nestle SA, Registered
(Switzerland) 2,943 3,363,899
Unilever PLC
(United Kingdom) 78,100 1,552,539
TOTAL CONSUMER BASICS 14,989,789
CONSUMER DURABLE GOODS - 9.5%
Autoliv AB (Sweden) 32,000 976,420
Bridgestone Corp. (Japan) 53,000 1,012,847
Daimler-Benz AG*
(Germany) 6,020 3,224,787
Daimler-Benz AG, Rights
expiring 07/05/96*
(Germany) 4,020 556
Electrolux AB, Series B
(Sweden) 18,600 937,010
Fiat SpA (Italy) 799,100 1,403,807
Honda Motor Co. (Japan) 79,000 2,051,479
Matsushita Electric
Industries (Japan) 175,000 3,264,298
Sony Corp. (Japan) 61,100 4,028,080
Toyota Motor Corp. (Japan) 98,000 2,455,265
Volvo AB (Sweden) 20,800 474,434
TOTAL CONSUMER DURABLE GOODS 19,828,983
CONSUMER NON-DURABLES - 3.5%
Amway Asia Pacific Ltd.
(United States) 10,000 302,500
Canon Inc. (Japan) 67,000 1,396,790
Coles Myer Ltd. (Australia) 134,300 487,596
Kingfisher PLC
(United Kingdom) 113,480 1,139,382
Pang Rim Spinning*
(South Korea) 11,200 552,268
Sears PLC
(United Kingdom) 1,016,400 1,562,721
Spar Handels AG
(Germany) 1,900 529,826
Thorn EMI
(United Kingdom) 45,400 1,264,911
TOTAL CONSUMER NON-DURABLES 7,235,994
ENERGY - 4.9%
Broken Hill Proprietary
Co. Ltd. (Australia) 84,591 1,167,987
CESP CIA Energy Sao
Paulo ADR* (Brazil) 31,600 314,787
CESP CIA Energy Sao
Paulo ADR, (a)* (Brazil) 14,000 139,463
Elf Aquitaine SA (France) 12,800 942,157
Royal Dutch Petroleum Co.
ADR (Netherlands) 14,200 2,183,250
RWE AG (Germany) 41,600 1,280,421
Shell Transport & Trading Co.
(United Kingdom) 106,700 1,557,664
Total Francaise Petroleum
(France) 14,231 1,056,341
Venezolana De Prerredicidos
GDR (a)* (Venezuela) 3,470 18,391
Woodside Petroleum Ltd.
(Australia) 207,950 1,248,517
YPF Sociedad Anonima,
Class D ADR (Argentina) 10,500 236,250
TOTAL ENERGY 10,145,228
ENTERTAINMENT AND LEISURE - 3.8%
Accor SA (France) 8,257 1,155,813
Carlton Communications
PLC (United Kingdom) 130,400 1,049,033
News Corporation Ltd. ADR
(Australia) 84,200 1,694,525
Nintendo Corp. Ltd. (Japan) 17,000 1,268,413
Rank Organisation PLC
(United Kingdom) 170,900 1,320,434
Reuters Holdings PLC
(United Kingdom) 77,680 $939,784
Television Broadcasts Ltd.
(Hong Kong) 164,000 615,466
TOTAL ENTERTAINMENT AND LEISURE 8,043,468
FINANCE - 15.0%
Aegon NV
(Netherlands) 27,832 1,282,671
Assurances Generales
de France (France) 33,200 899,775
Baloise Holdings
(Switzerland) 514 1,118,285
Banque Nationale
de Paris (France) 37,100 1,303,362
Bayerische Vereinsbank
AG (Germany) 28,480 799,800
Compagnie Financiere
de Paribas (France) 11,684 690,555
Deutsche Bank AG
(Germany) 32,800 1,553,173
EXEL Ltd. (United States) 17,100 1,205,550
HSBC Holding PLC, UK
registered (Hong Kong) 136,519 2,063,446
International Nederlanden
Groep NV (Netherlands) 101,177 3,019,604
Lloyds Abbey Life PLC
(United Kingdom) 153,700 1,212,604
Mitsui Marine & Fire
Insurance Co. (Japan) 61,000 485,814
Munchener Rueckvericherungs-
Gesellschaft* (Germany) 457 943,755
National Australia Bank
Ltd. (Australia) 99,500 918,762
Nichiei Co. (Japan) 10,000 667,490
Orix Corp. Ltd. (Japan) 38,000 $1,410,689
Promise Co. (Japan) 14,800 730,764
Schweizericher Bankverein
(Switzerland) 660 2,164
Schweizerische Rueckversicherungs*
(Switzerland) 1,145 1,176,872
Skandia Foersaekrings AB
(Sweden) 49,770 1,319,411
Skandinaviska Enskilda Banken,
Class A (Sweden) 103,175 826,011
St. James Place Capital PLC
(United Kingdom) 124,000 233,980
Sumitomo Trust and
Banking Co. (Japan) 150,000 2,057,331
Svenska Handelsbanken,
Class A (Sweden) 49,900 1,043,965
Unidanmark A/S, Class A
(Denmark) 23,700 1,100,350
Westpac Banking Corporation Ltd.
(Australia) 477,500 2,112,633
Zurich Versicherun Registered
(Switzerland) 4,275 1,166,033
TOTAL FINANCE 31,344,849
GENERAL BUSINESS - 3.3%
CIE Generale Des Eaux
(France) 14,800 1,654,483
Dai Nippon Printing Co.
Ltd. (Japan) 51,000 988,616
Flughafen Wien AG
(Austria) 2,955 203,036
Mirror Group PLC
(United Kingdom) 205,100 648,204
SAP AG (Germany) 13,800 2,048,445
SGS Societe Generale de
Surveillance Holding SA
(Switzerland) 396 948,664
Waste Management
International PLC*
(United Kingdom) 72,500 $405,343
TOTAL GENERAL BUSINESS 6,896,791
HEALTH CARE - 3.1%
Astra AB, Series A
(Sweden) 44,530 1,970,860
Astra AB, Series B
(Sweden) 20,200 881,830
Malbak Ltd. GDR (a)
(South Africa) 31,808 157,924
Malbak Ltd. GDR
(South Africa) 13,067 58,802
Roussel-Uclaf
ADR (France) 7,940 952,382
Sandoz AG (Switzerland) 1,330 1,522,340
Schering AG (Germany) 11,900 866,379
TOTAL HEALTH CARE 6,410,517
REAL ESTATE - 0.1%
Fastighets AB Nackebro*
New Share Units
(Sweden) 4,990 61,809
Fastighets AB Nackebro*
Share Units (Sweden) 49,900 60,301
TOTAL REAL ESTATE 122,110
TECHNOLOGY - 3.6%
British Aerospace PLC
(United Kingdom) 144,451 2,190,657
Fujitsu Ltd. (Japan) 69,000 630,915
Kyocera Corp. (Japan) 6,000 425,182
Ricoh Company Ltd.
(Japan) 195,000 2,068,303
Rohm Company (Japan) 35,000 $2,317,012
TOTAL TECHNOLOGY 7,632,069
TRANSPORTATION - 0.8%
Canadian Pacific Ltd.
(Canada) 57,000 1,246,209
London & Overseas Freighters
ADR (United Kingdom) 34,400 438,600
TOTAL TRANSPORTATION 1,684,809
UTILITIES - 5.0%
Centrais Eletricas
Brasileiras ADR (Brazil) 86,100 1,251,980
Empresa Nacional
de Electricidad SA
(Spain) 36,800 2,297,035
Huaneng Power International,
Inc. ADR* (China) 42,000 750,750
Korea Electric Power Corp.
ADR (South Korea) 20,000 485,000
National Power PLC
(United Kingdom) 108,000 872,185
National Power PLC,
partially paid (b)*
(United Kingdom) 106,700 636,322
Powergen PLC(b)
(United Kingdom) 149,526 1,089,109
Veba AG (Germany) 57,900 3,079,496
TOTAL UTILITIES 10,461,877
TOTAL COMMON STOCKS
(cost $161,136,348) 185,724,645
Principal
Amount Value
FOREIGN CORPORATE OBLIGATION - 0.3%
Teck Corp., Convertible Bonds,
3.750%, 07/15/06
(cost $394,270) $ 469,000 $483,070
COMMERICAL PAPER - 3.0%
Associates Corporation of
North America,
5.360%, 07/17/96 3,000,000 2,992,853
Federal National Mortgage
Association, Discount Notes,
5.260%, 7/16/96 240,000 239,474
UBS Finance Inc.,
5.580%, 07/01/96 3,000,000 3,000,000
TOTAL COMMERICAL PAPER
(cost $6,232,327) 6,232,327
U.S. TREASURY OBLIGATIONS - 2.1%
U.S. TREASURY BILLS - 0.8%
4.800%, 07/05/96 1,375,000 1,374,266
4.690%, 07/05/96 60,000 59,969
4.600%, 07/05/96 190,000 189,903
TOTAL U.S. TREASURY BILLS 1,624,138
U.S. TREASURY NOTES - 1.3%
6.250%, 08/31/96 2,755,000 2,758,726
TOTAL U.S. TREASURY OBLIGATIONS
(cost $4,382,864) 4,382,864
REPURCHASE AGREEMENT - 4.6%
Donaldson, Lufkin, Jenrette, dated
06/28/96, due 07/01/96, 5.450%,
total to be received $9,702,405
(secured by $9,497,000 U.S. Treasury
Bonds, 7.000%, due 04/15/99, market
value $9,795,956),
at cost 9,698,000 9,698,000
TOTAL INVESTMENTS - 98.8%
(cost $181,843,809) 206,520,906
OTHER ASSETS,
LESS LIABILITIES - 1.2% 2,602,308
NET ASSETS - 100.0% $209,123,214
Note: Based on the cost of investments of $181,862,705 for
Federal income tax purposes at June 30, 1996, the aggregate
gross unrealized appreciation and depreciation was
$28,560,631 and $3,902,430, respectively, resulting in net
unrealized appreciation of investments of $24,658,201.
* Non-income-producing security.
(a) Security exempt from registration under Rule 144A of the
Securities Act of 1933. These securities may
be resold in transactions exempt from registration, normally
to qualified buyers. At June 30, 1996, the value of these
securities amounted to $1,004,809, or 0.5% of net assets.
(b) Purchased on an installment basis. Market value reflects all
payments made through June 30, 1996.
INVESTMENT ABBREVIATIONS:
ADR/GDR: Securities whose value is determined or significantly
influenced by trading on exchanges not located in
the United States or Canada. ADR after the name of a
holding stands for American Depositary Receipt,
representing ownership of foreign securities on deposit
with a domestic custodian bank; a GDR (Global Depositary
Receipt) is comparable, but foreign securities are held on
deposit in a non-U.S. Bank.
COUNTRY ALLOCATION AT JUNE 30, 1996, AS A PERCENT OF NET ASSETS:
Japan - 19.1%
Germany - 13.1%
United Kingdom - 12.8%
Switzerland - 7.9%
France - 7.7%
Sweden - 4.7%
Australia - 4.5%
Netherlands - 4.3%
Canada - 2.1%
Hong Kong - 2.0%
Brazil - 1.5%
U.S. - 1.4%
Korea - 1.3%
Spain - 1.1%
Denmark - 1.0%
Italy - 0.7%
South Africa - 0.7%
Finland - 0.6%
New Zealand - 0.6%
Singapore - 0.5%
China - 0.4%
Norway - 0.3%
Indonesia - 0.3%
Ghana - 0.3%
Argentina - 0.1%
Austria - 0.1%
The accompanying notes are an integral part of these financial
statements.
THE MANAGERS FUNDS
STATEMENTS OF ASSETS AND LIABILITIES
June 30, 1996 (unaudited)
Managers Managers Managers Managers
Income Capital Special International
Equity Appreciation Equity Equity
Fund Fund Fund Fund
Assets:
Investments
at value* $42,771,694 $84,635,326 $151,374,396 $196,822,906
Repurchase agreements
at cost and value 4,060,000 11,585,000 16,015,000 9,698,000
Cash 6,480 3,968 9,380 17,646
Foreign currency
(cost $2,127,563) _ _ _ 2,134,124
Collateral from brokers
onsecurities loaned 1,410,300 3,205,760 5,507,280 _
Receivable for
investments sold 599,259 781,487 986,980 67,634
Receivable for Fund
shares sold 193,640 807,549 1,501,045 1,595,065
Dividends, interest and
other receivables 158,538 70,261 56,769 634,778
Foreign withholding
tax receivable _ 1,987 _ 202,298
Prepaid expenses 13,264 19,734 26,190 33,851
Total assets 49,213,175 101,111,072 175,477,040 211,206,302
Liabilities:
Payable for Fund
shares repurchased 2,844,125 2,577,050 2,215,025 161,876
Payable upon return of
securities loaned 1,410,300 3,205,760 5,507,280 _
Payable for investments
purchased 240,745 623,321 858,701 1,646,647
Accrued expenses:
Investment advisory and
management fees 28,514 63,864 122,513 148,159
Administrative fees 9,505 19,957 34,031 41,155
Other 34,086 43,104 54,180 85,251
Total liabilities 4,567,275 6,533,056 8,791,730 2,083,088
Net Assets $44,645,900 $94,578,016 $166,685,310 $209,123,214
Shares outstanding 1,499,949 3,264,134 3,260,323 4,910,034
Net asset value, offering
and redemption price
per share $29.76 $28.97 $51.13 $42.59
Net Assets Represent:
Paid-in capital $34,676,764 $73,960,752 $115,676,229 $178,453,850
Undistributed net investment
income (loss) 76,161 318,328 (192,455) 1,476,218
Accumulated net realized gain
from investments 2,348,695 8,729,236 12,712,377 4,511,253
Net unrealized appreciation
of investments and foreign
currency contracts and
translations 7,544,280 11,569,700 38,489,159 24,681,893
Net Assets $44,645,900 $94,578,016 $166,685,310 $209,123,214
*Investments at cost$35,227,414 $73,065,617 $112,885,237 $172,145,809
The accompanying notes are an integral part of these financial
statements.
THE MANAGERS FUNDS
STATEMENTS OF OPERATIONS
For the six months ended June 30, 1996 (unaudited)
Managers Managers Managers Managers
Income Capital Special International
Equity Appreciation Equity Equity
Fund Fund Fund Fund
Investment Income:
Dividend income $795,312 $602,685 $506,551 $2,765,928
Interest income 79,878 290,579 321,726 522,455
Foreign withholding tax _ (9,728) _ (398,553)
Stock loan fees 1,351 3,383 7,244 _
Total investment income 876,541 886,919 835,521 2,889,830
Expenses:
Investment advisory and
management fees 162,995 364,327 622,981 790,508
Administrative fees 54,332 113,852 173,050 219,586
Custodian fees 43,477 59,248 87,280 192,990
Transfer agent fees 25,962 47,989 63,293 84,527
Audit fees 15,676 19,704 19,720 23,648
Registration fees 13,262 12,438 22,440 26,696
Legal fees 2,837 5,103 8,878 10,507
Trustee fees 1,967 3,985 6,044 7,285
Miscellaneous expenses 7,839 20,628 24,290 29,348
Total expenses
before reductions 328,347 647,274 1,027,976 1,385,095
Expense reductions _ (35,565) _ _
Net expenses 328,347 611,709 1,027,976 1,385,095
Net investment
income (loss) 548,194 275,210 (192,455) 1,504,735
Net Realized and
Unrealized Gain (Loss):
Net realized gain on
investment transactions 1,366,691 5,902,073 9,031,874 4,433,254
Net realized loss on foreign
currency contracts
and translations _ _ _ (94,556)
Net unrealized appreciation
(depreciation) of
investments 554,415 (188,137) 14,031,513 5,366,937
Net unrealized appreciation
from foreign currency
translations _ _ _ 7,601
Net realized and
unrealized gain 1,921,106 5,713,936 23,063,387 9,713,236
Net Increase in
Net Assets Resulting
from Operation $2,469,300 $5,989,146 $22,870,932 $11,217,971
The accompanying notes are an integral part of these financial
statements.
THE MANAGERS FUNDS
STATEMENTS OF CHANGES IN NET ASSETS
Managers Income Equity Fund Managers Capital Appreciation Fund
For the For the
six months ended For the six months ended For the
June 30, 1996 year ended June 30,1996 year ended
(unaudited)December 31, 1995 (unaudited) December 31, 1995
INCREASE (DECREASE) IN
NET ASSETS FROM
OPERATIONS
Net investment
income (loss) $548,194 $1,138,269 $275,210 $245,949
Net realized gain
on investments
and foreign
currency
transactions 1,366,691 5,081,595 5,902,073 13,170,596
Net unrealized
appreciation
(depreciation) of
investments and
foreign currency
translations 554,415 5,771,575 (188,137) 8,969,556
Net increase in
net assets resulting
from operations 2,469,300 11,991,439 5,989,146 22,386,101
DISTRIBUTIONS TO
SHAREHOLDERS:
From net investment
income (513,682) (1,143,791) _ (224,395)
From net realized
gain on
investments _ (4,742,480) _ (10,213,381)
In excess of net
realized gainon
investments _ _ _ _
Total distributions to
shareholders (513,682) (5,886,271) _ (10,437,776)
FROM CAPITAL SHARE
TRANSACTIONS
Proceeds from
sale of shares 15,584,756 12,024,698 27,360,557 36,618,267
Net asset value
of shares issued
in connection
with reinvestment
of dividendsand
distributions 387,149 4,310,681 _ 8,380,359
Cost of shares
repurchased (11,089,120) (33,508,044) (22,124,448) (59,635,994)
Net increase (decrease)
from capital share
transactions 4,882,785 (17,172,665) 5,236,109 (14,637,368)
Total increase (decrease)
in net assets 6,838,403 (11,067,497) 11,225,255 (2,689,043)
Net Assets:
Beginning of
period 37,807,497 48,874,994 83,352,761 86,041,804
End of period $44,645,900 $37,807,497 $94,578,016$83,352,761
End of period
undistributed
net investment
income $76,161 $41,649 $318,328 $43,118
Share Transactions:
Sale of shares 532,930 429,990 976,504 1,353,077
Shares issued in
connection with
reinvestment of
dividends and
distributions 13,157 152,259 _ 312,566
Shares repurchased (375,968) (1,215,109) (783,367) (2,295,146)
Net increase (decrease)
in shares 170,119 (632,860) 193,137 (629,503)
The accompanying notes are an integral part of these financial
statements.
THE MANAGERS FUNDS
STATEMENTS OF CHANGES IN NET ASSETS
Managers Special Equity Fund Managers International Equity Fund
For the For the
six months ended For the six months ended For the
June 30, 1996 year ended June 30,1996 year ended
(unaudited)December 31, 1995 (unaudited) December 31, 1995
INCREASE (DECREASE) IN
NET ASSETS FROM
OPERATIONS
Net investment
income (loss) $(192,455) $(177,366) $1,504,735 $839,813
Net realized gain on
investments and
foreign currency
transactions 9,031,874 12,656,992 4,338,698 7,272,925
Net unrealized
appreciation
(depreciation) of
investments and
foreign currency
translations 14,031,513 18,943,704 5,374,538 7,272,709
Net increase in net
assets resulting from
operations 22,870,932 31,423,330 11,217,971 15,385,447
DISTRIBUTIONS TO
SHAREHOLDERS:
From net investment
income _ _ _ (435,148)
From net realized
gain on
investments _ (14,466,123) _ _
In excess of net
realized gain on
investments _ _ _ (7,196,327)
Total distributions
to shareholders _ (14,466,123) _ (7,631,475)
FROM CAPITAL SHARE
TRANSACTIONS:
Proceeds from sale
of shares 57,487,154 47,782,200 83,193,459 89,559,295
Net asset value
of shares issued
in connection with
reinvestment of
dividends and
distributions _ 8,768,064 _ 5,331,247
Cost of shares
repurchased (32,034,364) (66,729,768) (25,776,121) (49,080,381)
Net increase
(decrease) from
capital share
transactions 25,452,790 (10,179,504) 57,417,338 45,810,161
Total increase
(decrease) in
net assets 48,323,722 6,777,703 68,635,309 53,564,133
NET ASSETS:
Beginning of
period 118,361,588 111,583,885 140,487,905 86,923,772
End of period $166,685,310$118,361,588$209,123,214$140,487,905
End of period
undistributed
net investment
income ($192,455) _ $1,476,218 ($26,468)
SHARE
TRANSACTIONS:
Sale of shares 1,200,107 1,670,908 2,016,099 2,289,835
Shares issued
in connection
with reinvestment
of dividends and
distributions _ 53,991 _ 133,582
Shares
repurchased (670,884) (1,237,640) (620,623) (1,300,117)
Net increase
(decrease) in
shares 529,223 487,259 1,395,476 1,123,300
The accompanying notes are an integral part of these
financial statements.
MANAGERS INCOME EQUITY FUND
FINANCIAL HIGHLIGHTS
For a share of capital stock outstanding throughout each period
For the
six months
ended
June 30,
1996 Year ended December 31,
(unaudited) 1995 1994 1993 1992*
1991*
NET ASSET VALUE,
BEGINNING OF
PERIOD $28.43 $24.90 $27.89 $27.38 $28.62 $24.06
INCOME FROM
INVESTMENT
OPERATIONS:
Net investment
income 0.36 0.87 0.80 0.81 0.99 1.11
Net realized and
unrealized gain
(loss) on
investments 1.31 7.47 (0.50) 2.54 1.72 5.82
Total from
investment
operations 1.67 8.34 0.30 3.35 2.71 6.93
LESS DISTRIBUTIONS
TO SHAREHOLDERS:
From net investment
income (0.34) (0.86) (0.83) (0.76) (0.98) (1.20)
From net realized
gain on
investments _ (3.95) (2.46) (2.08) (2.97) (1.17)
Total distributions to
shareholders (0.34) (4.81) (3.29) (2.84) (3.95) (2.37)
NET ASSET VALUE,
END OF
PERIOD $29.76 $28.43 $24.90 $27.89 $27.38 $28.62
Total Return 5.89%(a) 34.36% 0.99% 12.40% 9.80% 29.33%
Ratio of expenses to
average net assets 1.50%(b) 1.45% 1.33% 1.32% 1.20% 1.16%
Ratio of net
investment income
to average net
assets 2.51%(b) 2.85% 3.06% 2.75% 3.52% 4.00%
Portfolio turnover 15%(a) 36% 46% 41% 41% 64%
Average commission
rate(c) $0.06 _ _ _ _ _
Net assets at end
of period
(000's omitted) $44,646 $37,807 $48,875 $40,965 $49,648 $70,077
* Audited by prior auditors.
(a) Not annualized.
(b) Annualized.
(c)All funds are now required to disclose their average
commission rate per share for security trades on which
commissions are charged. The amount may vary from period to
period and from fund to fund depending on the mix of trades
executed in various markets where trading practices and
commissions rate structures may differ.
MANAGERS CAPITAL APPRECIATION FUND
FINANCIAL HIGHLIGHTS
For a share of capital stock outstanding throughout each period
For the
six months
ended
June 30,
1996 Year ended December 31,
(unaudited) 1995 1994 1993 1992*
1991*
NET ASSET VALUE,
BEGINNING OF
PERIOD $27.14 $23.25 $25.17 $24.67 $23.46 $19.99
INCOME FROM
INVESTMENT
OPERATIONS:
Net investment
income 0.08 0.09 0.12 0.19 0.08 0.25
Net realized and
unrealized gain
(loss) on
investments 1.75 7.62 (0.49) 3.80 2.39 6.10
Total from
investment
operations 1.83 7.71 (0.37) 3.99 2.47 6.35
LESS DISTRIBUTIONS TO
SHAREHOLDERS:
From net investment
income _ (0.08) (0.12) (0.19) (0.07) (0.27)
From net realized
gain on
investments _ (3.74) (1.39) (3.30) (1.19) (2.61)
In excess of net
realized gain on
investments _ _ (0.04) _ _ _
Total distributions to
shareholders _ (3.82) (1.55) (3.49) (1.26) (2.88)
NET ASSET VALUE,
END OF
PERIOD $28.97 $27.14 $23.25 $25.17 $24.67 $23.46
Total Return 6.74%(a) 33.39% (1.50)% 16.38% 10.50% 31.97%
Ratio of expenses
to average net
assets 1.34%(b,c) 1.36% 1.29% 1.18% 1.05% 1.31%
Ratio of net
investment income
to average net
assets 0.60%(b) 0.31% 0.53% 0.74% 0.33% 1.07%
Portfolio turnover 76%(a) 134% 122% 131% 175% 259%
Average commission
rate(d) $0.06 _ _ _ _ _
Net assets at end
of period
(000's omitted) $94,578 $83,353 $86,042 $69,358 $56,196 $53,246
* Audited by prior auditors.
(a) Not annualized.
(b) Annualized.
(c) The Fund has entered into an arrangement with a third-party
broker-dealer who has paid a portion of the Fund's expenses.
Absent this expense reduction, the annualized ratio of
expenses to average net assets for the six months ended June
30, 1996 would have been 1.41%. (See Note 1c of Notes to
Financial Statements.)
(d) All funds are now required to disclose their average
commission rate per share for security trades on which
commissions are charged. The amount may vary from period to
period and from fund to fund depending on the mix of trades
executed in various markets where trading practices and
commissions rate structures may differ.
MANAGERS SPECIAL EQUITY FUND
FINANCIAL HIGHLIGHTS
For a share of capital stock outstanding throughout each period
For the
six months
ended
June 30,
1996 Year ended December 31,
(unaudited) 1995 1994 1993 1992*
1991*
NET ASSET VALUE,
BEGINNING OF
PERIOD $43.34 $36.79 $38.90 $36.14 $34.49 $24.46
INCOME FROM
INVESTMENT
OPERATIONS:
Net investment
income (loss) (0.06) (0.07) (0.01) 0.02 0.05 0.22
Net realized and
unrealized gain
(loss) on
investments 7.85 12.28 (0.76) 6.12 5.35 11.78
Total from investment
operations 7.79 12.21 (0.77) 6.41 5.40 12.00
LESS DISTRIBUTIONS
TO SHAREHOLDERS:
From net investment
income _ _ _ (0.01) (0.05) (0.23)
From net realized
gain on
investments _ (5.66) (1.34) (3.37) (3.70) (1.74)
Total distributions to
shareholders _ (5.66) (1.34) (3.38) (3.75) (1.97)
NET ASSET VALUE,
END OF
PERIOD $51.13 $43.34 $36.79 $38.90 $36.14 $34.49
Total Return 17.97%(b) 33.94% (1.99)% 17.05% 15.64% 49.26%
Ratio of expenses
to average net
assets 1.48%(c) 1.44% 1.37% 1.26% 1.29% 1.30%
Ratio of net
investment income
(loss) to average
net assets (0.28)%(c) (0.16)% (0.06)% 0.07%
0.14% 0.73%
Portfolio turnover 32%(b) 65% 66% 45% 54% 70%
Average commission
rate(d) $0.05 _ _ _ _ _
Net assets at
end of period
(000's omitted) $166,685 $118,362 $111,584 $99,032 $53,641 $40,616
* Audited by prior auditors.
(a) Calculated using the weighted average shares outstanding
during the year.
(b) Not annualized.
(c) Annualized.
(d) All funds are now required to disclose their average
commission rate per share for security trades on which
commissions are charged. The amount may vary from period to
period and from fund to fund depending on the mix of trades
executed in various markets where trading practices and
commissions rate structures may differ.
MANAGERS INTERNATIONAL EQUITY FUND
FINANCIAL HIGHLIGHTS
For a share of capital stock outstanding throughout each period
For the
six months
ended
June 30,
1996 Year ended December 31,
(unaudited) 1995 1994 1993 1992*
1991*
NET ASSET VALUE,
BEGINNING
OF PERIOD $39.97 $36.35 $35.92 $26.52 $25.66 $22.09
INCOME FROM
INVESTMENT
OPERATIONS:
Net investment
income 0.31 0.31 0.16 0.22 0.23 0.36
Net realized and
unrealized gain
on investments 2.31 5.59 0.56 9.88 0.85 3.64
Total from
investment
operations 2.62 5.90 0.72 10.10 1.08 4.00
LESS DISTRIBUTIONS
TO SHAREHOLDERS:
From net investment
income _ (0.13) (0.08) (0.29) (0.22) (0.36)
In excess of net
investment
income _ _ _ (0.11) _ _
From net realized
gain on
investments _ (2.15) _ (0.30) _ (0.07)
In excess of net
realized gain on
investments _ _ (0.21) _ _ _
Total distributions to
shareholders _ (2.28) (0.29) (0.70) (0.22) (0.43)
NET ASSET VALUE,
END OF
PERIOD $42.59 $39.97 $36.35 $35.92 $26.52 $25.66
Total Return 6.55%(b) 16.24% 2.00% 38.20% 4.25% 18.14%
Ratio of expenses to
average net
assets 1.57%(c) 1.58% 1.49% 1.47% 1.45% 1.69%
Ratio of net investment
income to average net
assets 1.70%(c) 0.80% 0.60% 0.78% 0.97% 1.50%
Portfolio turnover 17%(b) 73% 22% 46% 51% 158%
Average commission
rate(d) $0.02 _ _ _ _ _
Net assets at end of
period
(000's omitted) $209,123 $140,488 $86,924 $62,273 $23,129 $14,222
* Audited by prior auditors.
(a) Calculated using the weighted average shares outstanding
during the year.
(b) Not annualized.
(c) Annualized.
(d) All funds are now required to disclose their average
commission rate per share for security trades on which
commissions are charged. The amount may vary from period to
period and from fund to fund depending on the mix of trades
executed in various markets where trading practices and
commissions rate structures may differ.
THE MANAGERS FUND
NOTES TO FINANCIAL STATEMENTS
June 30, 1996 (unaudited)
(1) Summary of Significant Accounting Policies
The Managers Funds (the "Trust") is a no-load, diversified, open-
end, management investment company, organized as a Massachusetts
business trust, and registered under the Investment Company Act
of 1940, as amended (the "1940 Act"). Currently the Trust is
comprised of 10 investment series. Included in this report are
Managers Income Equity Fund, Managers Capital Appreciation Fund,
Managers Special Equity Fund and Managers International Equity
Fund, collectively the "Funds."
The Funds' financial statements are prepared in accordance with
generally accepted accounting principles, which require the use
of management's estimates. The following is a summary of
significant accounting policies followed by the Funds:
(a) Valuation of Investments
Equity securities traded on a domestic or international
securities exchange are valued at the last quoted sales price,
or, lacking any sales, on the basis of the last quoted bid price.
Over-the-counter securities for which market quotations are
readily available are valued at the last quoted bid price. Fixed
income securities are valued based on valuations furnished by
independent pricing services that utilize matrix systems which
reflect such factors as security prices, yields, maturities, and
ratings, and are supplemented by dealer and exchange quotations.
Short-term investments, having a remaining maturity of 60 days or
less, are valued at amortized cost which approximates market.
Securities for which market quotations are not readily available
are valued at fair value, as determined in good faith and
pursuant to procedures established by the Board of Trustees.
(b) Security Transactions
Security transactions are accounted for as of trade date. Gains
and losses on securities sold are determined on the basis of
identified cost.
(c) Investment Income and Expenses
Dividend income is recorded on the ex-dividend date, except
certain dividends from foreign securities where the ex-dividend
date may have passed are recorded as soon as the Trust is
informed of the ex-dividend date. Dividend income on foreign
securities is recorded net of withholding tax. Interest income is
recorded on the accrual basis and includes amortization of
discounts and premiums when required for federal income tax
purposes. Other income and expenses are recorded on an accrual
basis. Expenses which cannot be directly attributed to a
particular fund are apportioned among the funds in the Trust
based upon their average net assets.
Managers Capital Appreciation Fund has directed certain portfolio
trades to brokers who paid a portion of the Fund's expenses. For
the six months ended June 30, 1996, the Fund's expenses were
reduced by $35,565 under this arrangement.
(d) Dividends and Distributions
Dividends resulting from net investment income, if any, normally
will be declared and paid monthly for Managers Income Equity Fund
and annually for Managers Capital Appreciation Fund, Managers
Special Equity Fund and Managers International Equity Fund.
Distributions of capital gains, if any, will be made on an annual
basis and when required for federal excise tax purposes. Income
and capital gain distributions are determined in accordance with
Federal income tax regulations which may differ from generally
accepted accounting principles. These differences are primarily
due to differing treatments for foreign currency related
transactions, losses deferred due to wash sales and equalization
accounting for tax purposes. Permanent book and tax basis
differences, if any, relating to shareholder distributions will
result in reclassifications to paid-in capital.
(e) Repurchase Agreements
Each Fund may enter into repurchase agreements provided that the
value of the underlying collateral, including accrued interest,
will be equal to or exceed the value of the repurchase agreement
during the term of the agreement. The underlying collateral for
all repurchase agreements is held in safekeeping by the Fund's
custodian or at the Federal Reserve Bank.
If the seller defaults and the value of the collateral declines,
or if bankruptcy proceedings commence with respect to the seller
of the security, realization of the collateral by the Fund may be
delayed or limited.
(f) Federal Taxes
Each Fund intends to comply with the requirements under
Subchapter M of the Internal Revenue Code of 1986, as
amended, and to distribute substantially all of its taxable
income and gains to its shareholders and to meet certain
diversification and income requirements with respect to
investment companies. Therefore, no provision for federal income
or excise tax is included in the accompanying financial
statements.
(g) Capital Stock
The Trust's Declaration of Trust authorizes for each series the
issuance of an unlimited number of shares of beneficial interest,
without par value. Each Fund records sales and repurchases of its
capital stock on the trade date. Dividends and distributions to
shareholders are recorded on the ex-dividend date.
At June 30, 1996, certain unaffiliated shareholders, including
omnibus accounts, individually held greater than 10% of the
outstanding shares of the Funds: Managers Income Equity Fund _
two own 21%; Managers Capital Appreciation Fund _one owns 31%;
Managers Special Equity Fund _ three own 58%; and Managers
International Equity Fund _ two own 36%.
(h) Foreign Currency Translation
The books and records of the Funds are maintained in U.S.
dollars. The value of investments, assets and liabilities
denominated in currencies other than U.S. dollars are translated
into U.S. dollars based upon current foreign exchange rates.
Purchases and sales of foreign investments and income and
expenses are converted into U.S. dollars based on currency
exchange rates prevailing on the respective dates of such
transactions. Net realized and unrealized gain (loss) on foreign
currency transactions represent: (1) foreign exchange gains and
losses from the sale and holdings of foreign currencies; (2)
gains and losses between trade date and settlement date on
investment securities transactions and forward foreign currency
exchange contracts; and (3) gains and losses from the difference
between amounts of interest and dividends recorded and the
amounts actually received.
In addition, the Funds do not isolate that portion of the results
of operation resulting from changes in exchange rates from the
fluctuations resulting from changes in market prices of
securities held. Such fluctuations are included with the net
realized and unrealized gain or loss on investments.
(2) Agreements and Transactions with Affiliates
The Managers Funds, L.P. (the "Investment Manager") provides or
oversees investment advisory and management services to the Funds
under Management Agreements with each Fund. The Investment
Manager selects portfolio managers for each Fund (subject to
Trustee approval), allocates assets among portfolio managers and
monitors the portfolio managers' investment programs and results.
Each Fund's investment portfolio is managed by portfolio managers
who serve pursuant to Portfolio Management Agreements with the
Investment Manager and the Fund. Certain trustees and officers of
the Funds are officers of the Investment Manager.
Investment advisory and management fees are paid directly by each
Fund to The Managers Funds, L.P. based on average daily net
assets. The annual investment advisory and management fee rates,
as a percentage of average daily net assets for the six months
ended June 30, 1996, were as follows:
Investment Advisory
and
Fund Management Fee
Managers-
Income Equity 0.75%
Capital Appreciation 0.80
Special Equity 0.90
International Equity 0.90
The Trust has adopted an Administrative and Shareholder Servicing
Agreement. The Managers Funds, L.P. serves as each Fund's
administrator (the "Administrator") and is responsible for all
aspects of managing the Funds' operations, including
administration and shareholder services to each Fund, its
shareholders, and certain institutions, such as bank trust
departments, broker-dealers and registered investment advisers,
that advise or act as an intermediary with the Funds'
shareholders. During the six months ended June 30, 1996, each of
the Funds paid a fee to the Administrator at the rate of 0.25%
per annum of the Fund's average daily net assets.
An aggregate annual fee of $10,000 is paid to each outside
Trustee for serving as a Trustee of the Trust. In addition, these
Trustees receive meeting fees of $750 for each in-person meeting
attended, and $200 for participation in any telephonic meetings.
The Trustee fee expense shown in the financial statements
represents each Fund's allocated portion of the total fees.
(3) Purchases and Sales of Securities
Purchases and sales of securities, excluding short-term
securities, for the six months ended June 30, 1996 were as
follows:
Fund Purchases Sales
Managers-
Income Equity $12,131,187 $5,853,135
Capital Appreciation 66,895,411 63,465,718
Special Equity 58,326,313 40,475,096
International Equity 72,937,101 27,110,982
There were no purchases or sales of U.S. Government securities.
(4) Portfolio Securities Loaned
Certain of the Funds may participate in a securities lending
program providing for the lending of corporate bonds, equity and
government securities to qualified brokers. Collateral on all
securities loaned except for government securities loaned is
accepted only in cash. Collateral on government securities loaned
is in the form of other similar securities. Collateral is
maintained at a minimum level of 100% of the market value, plus
interest, if applicable, of investments on loan. Collateral
received in the form of cash is invested temporarily in money
market funds by the custodian. Earnings of such temporary cash
investments are divided between the custodian, as a fee for its
services under the program, and the Fund, according to agreed-
upon rates.
(5) Forward Foreign Currency Contracts (Managers International
Equity Fund only)
During the six months ended June 30, 1996, Managers International
Equity Fund invested in forward foreign currency exchange
contracts. These investments may involve greater market risk than
the amounts disclosed in the Fund's financial statements.
A forward foreign currency exchange contract is an agreement
between the Fund and another party to buy or sell a
currency at a set price at a future date. The market value of the
contract will fluctuate with changes in currency exchange rates.
The contract is marked-to-market daily, and the change in market
value is recorded as an unrealized gain or loss. Gain or loss on
the purchase or sale of contracts having the same settlement
date, amount and counterparty is realized on the date of offset,
otherwise gain or loss is realized on settlement date.
The Fund may invest in non-U.S. dollar denominated instruments
subject to limitations, and enter into forward foreign currency
exchange contracts to facilitate transactions in foreign
securities and protect against a possible loss resulting from an
adverse change in the relationship between the U.S. dollar and
such foreign currency. Risks may arise upon entering into these
contracts from the potential inability of counterparties to meet
the terms of their contracts and from unanticipated movements in
the value of a foreign currency relative to the U.S. dollar.
There were no open forward foreign currency exchange contracts at
June 30, 1996.
(6) Contingency
Two lawsuits seeking class action status have been filed against
Managers Intermediate Mortgage Fund, Managers Short Government
Fund, and the Investment Manager, among other defendants
including the Trust. A motion has been filed to dismiss the suit
relating to Managers Intermediate Mortgage Fund and there has
been no decision yet from the court. On November 24, 1995, the
defendant's motion to dismiss the suit against Managers Short
Government Fund was granted, in part and denied, in part. The
plaintiff has since filed an amended complaint and the defendants
have moved to dismiss the amended complaint. In both of these
cases, the plaintiffs seek unspecified damages based upon losses
alleged in the two funds named above. Another non-class action
lawsuit has been filed against certain of the defendants
mentioned above, among others, and Managers Short and
Intermediate Bond Fund based on similar allegations. Certain
individual customers, who are potentially members of the class of
plaintiffs in the two class action lawsuits referred to above,
have asserted that they may file similar lawsuits against certain
of the defendants based on similar claims, but have not done so.
Management believes that the cases are without merit and intends
to defend vigorously against these actions.
Where Leading Money Managers Converge
Fund Distributor
The Managers Funds, L.P.
40 Richards Avenue
Norwalk, Connecticut 06854-2325
(203) 857-5321 or (800) 835-3879
Custodian
State Street Bank and Trust
Company
1776 Heritage Drive
North Quincy, Massachusetts
02171
Legal Counsel
Shereff, Friedman, Hoffman &
Goodman, LLP
919 Third Avenue
New York, New York 10022
Transfer Agent
Boston Financial Data Services, Inc.
attn: The Managers Funds
P.O. Box 8517
Boston, Massachusetts 02266-8517
(800) 252-0682
This report is prepared for the information of shareholders. It
is authorized for distribution to prospective investors only when
preceded or accompanied by an effective prospectus.
The Managers Funds
Equity Funds:
INCOME EQUITY FUND
Scudder, Stevens & Clark, Inc.
Spare, Kaplan, Bischel & Associates
CAPITAL APPRECIATION FUND
Dietche & Field Advisers, Inc.
Hudson Capital Advisers
SPECIAL EQUITY FUND
Liberty Investment Management
Pilgrim Baxter & Associates
Westport Asset Management, Inc.
INTERNATIONAL EQUITY
FUND
Scudder, Stevens & Clark, Inc.
Lazard, Fr<*>eres & Co.
Fixed Income Funds:
MONEY MARKET FUND
Morgan Guaranty Trust Company
of New York
SHORT GOVERNMENT FUND
Jennison Associates Capital Corp.
SHORT AND INTERMEDIATE
BOND FUND
Standish, Ayer & Wood, Inc.
INTERMEDIATE MORTGAGE
FUND
Jennison Associates Capital Corp.
BOND FUND
Loomis, Sayles & Company, Inc.
GLOBAL BOND FUND
Rogge Global Partners
