<PAGE>
[ ASTRA LOGO ]
ASTRA SHORT-TERM MULTI-MARKET INCOME FUND I & II SEMI-ANNUAL REPORT
August 19, 1996
Dear Shareholders,
The Astra Short-Term Multi-Market Income Fund I and the Astra Short-Term
Multi-Market Income Fund II (collectively, the 'Funds' or individually, a
'Fund') for the six months ending June 30, 1996, provided total returns of 1.27%
and -0.16% respectively*. During the same period, U.S. interest rates, as
measured by the 3-year U.S. Treasury, increased 106 basis points from 5.21% to
6.27%, and conversely, bond prices fell. The primary objective of the Funds is
to provide investors with high current income with capital preservation as a
secondary objective. The Funds invest in non-diversified portfolios of high
quality debt instruments having remaining maturities of not more than 3 years
denominated in the U.S. Dollar and a range of foreign currencies.
While some bond markets around the world were hurt by fears that economic growth
would increase, specifically the U.S., other markets outperformed the U.S.
because their own domestic fundamentals pointed to slow growth and low
inflation. Historically, bonds have performed well in periods of slow growth and
low inflation. Consequently, the Funds invested the majority of their assets in
Europe, where it was believed favorable conditions for bond investors existed.
For example, countries with slow growth and low inflation included Italy, Spain,
and Sweden. Additionally, Canada benefited from low inflation and higher yields
relative to the U.S.
Looking forward, the global bond-market rally that began in late 1994/early 1995
remains essentially intact and is expected to resume its course beginning in
early 1997. In the meantime, the Funds will maintain a shorter duration than
normal during the remainder of 1996. The Funds will also hold a small percentage
of cash and/or cash equivalents in expectation of an attractive reinvestment
opportunity during the fourth quarter of 1996 as interest rates are expected to
slightly rise during the next few months. Against this backdrop, the Funds will
overweight the dollar-bloc countries at the expense of the yen and DM-bloc
countries. The desire to overweight the dollar-bloc currencies reflects the view
that the U.S. dollar will gain ground on both the yen and DM over the course of
1996. Within the dollar-bloc, the Funds favor overweight positions in
Australian, New Zealand, and Canadian dollars. These currencies enjoy a
substantial real yield pick-up over comparable U.S. dollar assets. Within the
DM-bloc, the Funds favor overweight positions in the higher-yielding European
countries such as Spain, Sweden, and Denmark.
Please be assured that the management of Astra will continue to closely monitor
the performance of the Funds as well as all the other funds of the Astra family.
We appreciate your continued support and welcome your comments and suggestions.
Sincerely,
Astra Management Corp.
- ------------------
* Total return calculations assume a hypothetical initial investment at the net
asset value on the business day before the first day of the stated period,
with all dividends and distributions reinvested in additional shares at the
net asset value on the ex-dividend date, and redemption at the net asset value
on the last business day of the stated period. Sales charges or commissions
are not reflected in the total returns. Total return for the six months ending
June 30, 1996 was (1.78%) and (4.08%) for Fund I and Fund II, respectively,
after deduction of applicable sales charges and assuming the reinvestment of
all dividends.
PERFORMANCE DATA REPRESENTS PAST PERFORMANCE AND IS NOT INDICATIVE OF FUTURE
RESULTS. INVESTMENT RETURN AND PRINCIPAL VALUE OF AN INVESTMENT IN THE FUND WILL
FLUCTUATE. SHARES, WHEN REDEEMED, MAY BE WORTH MORE OR LESS THAN THEIR ORIGINAL
COST.
<PAGE>
ASTRA SHORT-TERM MULTI-MARKET INCOME FUND I
PORTFOLIO OF INVESTMENTS AS OF JUNE 30, 1996 (UNAUDITED)
- ------------------------------
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT* BONDS AND NOTES: 89.5% VALUE
- ---------------- ------------
<S> <C> <C> <C>
AUSTRALIA: 5.0%
530,000 Australian Government Bond, 7.00%, Due 8/15/98.............................. $ 407,505
------------
CANADA: 5.0%
550,000 Canadian Government Bond, 6.25%, Due 2/1/98................................. 406,033
------------
DENMARK: 6.5%
3,000,000 Denmark Government Bond, 7.00%, Due 8/15/97................................. 526,936
------------
ITALY: 12.5%
1,500,000,000 Italian Government Bond, 10.50%, Due 11/1/98................................ 1,023,083
------------
SPAIN: 13.3%
139,000,000 Spanish Government Bond, 7.30%, Due 7/30/97................................. 1,086,301
------------
SWEDEN: 7.2%
3,800,000 Swedish Government Bond, 10.75%, Due 1/23/97................................ 588,056
------------
UNITED KINGDOM: 8.1%
400,000 United Kingdom Government Bond, 9.50%, Due 1/15/99.......................... 660,503
------------
UNITED STATES: 31.9%
2,200,000 U.S. Treasury Note, 6.125%, Due 5/15/98..................................... 2,201,914
400,000 U.S. Treasury Note, 5.375%, Due 5/31/98..................................... 394,876
------------
2,596,790
------------
Total Bonds and Notes (Cost $7,261,544)..................................... 7,295,207
------------
SHORT-TERM INVESTMENTS: 8.2%
NEW ZEALAND: 4.4%
525,000 New Zealand Treasury Bill, Due 8/7/96....................................... 356,957
------------
UNITED STATES: 3.8%
310,000 U.S. Federal Home Loan Mtge. Corp., 5.48%, Due 7/1/96....................... 310,000
------------
Total Short-Term Investments (Cost $662,077)................................ 666,957
------------
SHARES PREFERRED STOCK: 0.0%
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FINANCIAL: 0.0%
71,265 (R) (a) Westfed Holdings, Inc., 15.50%.............................................. 1
------------
Total Preferred Stock (Cost $6,180,331)..................................... 1
------------
COMMON STOCK: 0.0%
FINANCIAL: 0.0%
21,120 (R) (a) Westfed Holdings, Inc., Series B............................................ 1
------------
Total Common Stock (Cost $638).............................................. 1
------------
</TABLE>
<TABLE>
<S> <C> <C> <C>
TOTAL INVESTMENTS IN SECURITIES
(COST $14,104,590)** (NOTES 1A AND 2)................................... 97.7% 7,962,166
CASH AND OTHER ASSETS IN EXCESS OF LIABILITIES.......................... 2.3% 187,023
--------- ------------
TOTAL NET ASSETS........................................................ 100.0% $ 8,149,189
--------- ------------
--------- ------------
</TABLE>
(R) Restricted securities (see Note 2).
(a) Non-income producing security.
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* Stated in local currencies unless otherwise noted.
** Cost for Federal income tax purposes is $14,104,590 and net unrealized
depreciation consists of:
<TABLE>
<S> <C> <C>
Gross Unrealized Appreciation...................................................... $ 127,473
Gross Unrealized Depreciation...................................................... (6,269,897)
------------
Net Unrealized Depreciation........................................................ $ (6,142,424)
------------
------------
</TABLE>
See Notes to Financial Statements
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2
<PAGE>
ASTRA SHORT-TERM MULTI-MARKET INCOME FUND II
PORTFOLIO OF INVESTMENTS AS OF JUNE 30, 1996 (UNAUDITED)
--------------------------------
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT* BONDS AND NOTES: 87.1% VALUE
- -------------- ------------
<S> <C> <C> <C>
AUSTRALIA: 4.9%
125,000 Australian Government Bond, 7.00%, Due 8/15/98................................ $ 96,110
------------
CANADA: 5.6%
150,000 Canadian Government Bond, 6.25%, Due 2/1/98................................... 110,736
------------
DENMARK: 4.5%
500,000 Denmark Government Bond, 7.00%, Due 8/15/97................................... 87,823
------------
ITALY: 17.4%
500,000,000 Italian Government Bond, 10.50%, Due 11/1/98.................................. 341,028
------------
SPAIN: 10.4%
26,000,000 Spanish Government Bond, 7.30%, Due 7/30/97................................... 203,193
------------
SWEDEN: 10.3%
1,300,000 Swedish Government Bond, 10.75%, Due 1/23/97.................................. 201,177
------------
UNITED KINGDOM: 8.4%
100,000 United Kingdom Government Bond, 9.50%, Due 1/15/99............................ 165,125
------------
UNITED STATES: 25.6%
200,000 U.S. Treasury Note, 6.125%, Due 5/15/98....................................... 200,174
305,000 U.S. Treasury Note, 5.375%, Due 5/31/98....................................... 301,093
------------
501,267
------------
Total Bonds and Notes (Cost $1,501,347)....................................... 1,706,459
------------
SHORT-TERM INVESTMENTS: 10.1%
NEW ZEALAND: 4.0%
115,000 New Zealand Treasury Bill, Due 8/7/96......................................... 78,191
------------
UNITED STATES: 6.1%
120,000 U.S. Federal Home Loan Mtge. Corp., 5.48%, Due 7/1/96......................... 120,000
------------
Total Short-Term Investments (Cost $381,883).................................. 198,191
------------
</TABLE>
<TABLE>
<S> <C> <C> <C>
TOTAL INVESTMENTS IN SECURITIES
(COST $1,883,230)** (NOTES 1A AND 2).................................... 97.2% 1,904,650
CASH AND OTHER ASSETS IN EXCESS OF LIABILITIES.......................... 2.8% 55,624
--------- ------------
TOTAL NET ASSETS........................................................ 100.0% $ 1,960,274
--------- ------------
--------- ------------
</TABLE>
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* Stated in local currencies unless otherwise noted.
** Cost for Federal income tax purposes is $1,883,230 and net unrealized
appreciation consists of:
<TABLE>
<S> <C> <C>
Gross Unrealized Appreciation...................................................... $ 38,340
Gross Unrealized Depreciation...................................................... (16,920)
------------
Net Unrealized Appreciation........................................................ $ 21,420
------------
------------
</TABLE>
See Notes to Financial Statements
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3
<PAGE>
ASTRA SHORT-TERM MULTI-MARKET INCOME FUNDS
STATEMENTS OF ASSETS AND LIABILITIES
JUNE 30, 1996 (UNAUDITED)
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<TABLE>
<CAPTION>
FUND I FUND II
-------------- --------------
<S> <C> <C>
ASSETS:
Investments in securities, at value (identified cost $14,104,590 and
$1,883,230, respectively) (Notes 1A and 2).................................. $ 7,962,166 $ 1,904,650
Cash........................................................................... 1,973 4,996
Receivables:
Interest.................................................................... 216,291 48,728
Securities sold............................................................. -- 92,793
Prepaid expenses............................................................... 12,368 6,644
Deferred organization expenses (Net of accumulated amortization of $66,361)
(Note 1F)................................................................... -- 8,058
Other assets................................................................... 2,109 3,703
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Total Assets.............................................................. 8,194,907 2,069,572
-------------- --------------
LIABILITIES:
Payables:
Capital stock redeemed...................................................... 35,922 4,643
Securities purchased........................................................ -- 103,805
Accrued expenses............................................................... 9,796 850
-------------- --------------
Total Liabilities......................................................... 45,718 109,298
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NET ASSETS....................................................................... $ 8,149,189 $ 1,960,274
-------------- --------------
-------------- --------------
COMPUTATION OF OFFERING PRICE:
Net asset value and redemption price per share ($8,149,189 divided by 1,214,073
shares and $1,960,274 divided by 271,217 shares, respectively) (Note 6)........ $ 6.71 $ 7.23
-------------- --------------
-------------- --------------
Offering price per share ($6.71 divided by 97% and $7.23 divided by 100%)........ $ 6.92* $ 7.23
-------------- --------------
-------------- --------------
</TABLE>
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* On investments of $100,000 or more the offering price is reduced.
<TABLE>
<S> <C> <C>
At June 30, 1996 the components of net assets were as follows:
Paid-in capital........................................................ $ 96,113,209 $ 3,507,771
Accumulated net investment deficit..................................... (1,815) (18,364)
Accumulated net realized losses on investments......................... (81,635,710) (1,472,509)
Accumulated net realized losses from forward currency contracts and
foreign exchange transactions........................................ (181,727) (77,316)
Net unrealized appreciation (depreciation) of investments and foreign
currency transactions................................................ (6,144,768) 20,692
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$ 8,149,189 $ 1,960,274
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-------------- --------------
</TABLE>
See Notes to Financial Statements
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4
<PAGE>
ASTRA SHORT-TERM MULTI-MARKET INCOME FUNDS
STATEMENTS OF OPERATIONS
FOR THE SIX MONTHS ENDED JUNE 30, 1996 (UNAUDITED)
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<TABLE>
<CAPTION>
FUND I FUND II
----------- ----------
<S> <C> <C>
INVESTMENT INCOME:
INCOME:
Interest.............................................................................. $ 316,895 $ 95,229
----------- ----------
EXPENSES:
Transfer agent fees................................................................... 31,029 10,741
Investment management fees (Note 5)................................................... 28,990 8,645
Distribution expenses (Note 4)........................................................ 13,915 13,833
Professional fees..................................................................... 20,153 6,452
Registration and filing fees.......................................................... 9,249 8,006
Recordkeeping fees.................................................................... 9,945 3,482
Amortization of organization expenses (Note 1F)....................................... -- 13,086
Custody fees.......................................................................... 5,968 2,486
Reports to shareholders............................................................... 5,222 1,989
Insurance expense..................................................................... 5,107 1,791
Miscellaneous......................................................................... 1,492 1,094
Trustees' fees........................................................................ 870 348
----------- ----------
Total expenses................................................................... 131,940 71,953
Expense waiver (Note 5)............................................................... (2,109) (8,645)
----------- ----------
Net expenses..................................................................... 129,831 63,308
----------- ----------
Net investment income............................................................ 187,064 31,921
----------- ----------
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS
AND FOREIGN CURRENCY TRANSACTIONS:
Net realized gain on investments...................................................... 84,691 9,462
Net realized loss from forward currency contracts and foreign exchange transactions... (53,110) (30,539)
----------- ----------
Net realized gain (loss).............................................................. 31,581 (21,077)
Net change in unrealized appreciation (depreciation) of investments, forward currency
contracts and foreign currency transactions........................................ (113,228) (23,440)
----------- ----------
Net realized and unrealized loss on investments and foreign currency transactions..... (81,647) (44,517)
----------- ----------
Net increase (decrease) in net assets resulting from operations............... $ 105,417 $ (12,596)
----------- ----------
----------- ----------
</TABLE>
See Notes to Financial Statements
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5
<PAGE>
ASTRA SHORT-TERM MULTI-MARKET INCOME FUND I
STATEMENT OF CHANGES IN NET ASSETS
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<TABLE>
<CAPTION>
SIX MONTHS ENDED YEAR ENDED
JUNE 30, 1996 DECEMBER 31,
(UNAUDITED) 1995
---------------- --------------
<S> <C> <C>
OPERATIONS:
Net investment income........................................................ $ 187,064 $ 502,178
Net realized gain on investments............................................. 84,691 10,396
Net realized loss from forward currency contracts and foreign exchange
transactions.............................................................. (53,110) (73,238)
Net change in unrealized appreciation (depreciation) of investments, forward
currency contracts and foreign currency transactions...................... (113,228) 292,667
---------------- --------------
Net increase in net assets resulting from operations......................... 105,417 732,003
DISTRIBUTION TO SHAREHOLDERS:
Distributions from net investment income ($0.01 and $0.25 per share,
respectively)............................................................. (18,519) (470,288)
Distributions from paid-in capital ($0.12 and $0.10 per share,
respectively)............................................................. (170,360) (196,366)
CAPITAL SHARE TRANSACTIONS:
Net decrease in net assets from capital share transactions (a)............... (2,368,497) (5,030,683)
---------------- --------------
Total decrease in net assets................................................. (2,451,959) (4,965,334)
Net assets at the beginning of the period...................................... 10,601,148 15,566,482
---------------- --------------
NET ASSETS at the end of the period............................................ $ 8,149,189 $ 10,601,148
---------------- --------------
---------------- --------------
</TABLE>
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(A) A SUMMARY OF CAPITAL SHARE TRANSACTIONS IS AS FOLLOWS:
<TABLE>
<CAPTION>
SIX MONTHS ENDED YEAR ENDED
JUNE 30, 1996 (UNAUDITED) DECEMBER 31, 1995
-------------------------- --------------------------
SHARES VALUE SHARES VALUE
---------- -------------- ---------- --------------
<S> <C> <C> <C> <C>
Shares sold........................................... 3,316 $ 22,214 16,884 $ 113,670
Shares issued in reinvestment of distributions to
shareholders........................................ 14,203 95,000 49,436 333,216
---------- -------------- ---------- --------------
17,519 117,214 66,320 446,886
Shares redeemed....................................... (371,013) (2,485,711) (810,824) (5,477,569)
---------- -------------- ---------- --------------
Net decrease..................................... (353,494) $ (2,368,497) (744,504) $ (5,030,683)
---------- -------------- ---------- --------------
---------- -------------- ---------- --------------
</TABLE>
See Notes to Financial Statements
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6
<PAGE>
ASTRA SHORT-TERM MULTI-MARKET INCOME FUND II
STATEMENT OF CHANGES IN NET ASSETS
- ------------------------------
<TABLE>
<S> <C> <C>
SIX MONTHS ENDED YEAR ENDED
JUNE 30, 1996 DECEMBER 31,
(UNAUDITED) 1995
---------------- --------------
OPERATIONS:
Net investment income........................................................ $ 31,921 $ 131,065
Net realized gain on investments............................................. 9,462 51,681
Net realized loss from forward currency contracts and foreign exchange
transactions.............................................................. (30,539) (30,514)
Net change in unrealized appreciation (depreciation) of investments, forward
currency contracts and foreign currency transactions...................... (23,440) 43,768
---------------- --------------
Net increase (decrease) in net assets resulting from operations.............. (12,596) 196,000
DISTRIBUTION TO SHAREHOLDERS:
Distributions from net investment income ($0.21 per share)................... -- (136,223)
Distributions from paid-in capital ($0.13 and $0.10 per share,
respectively)............................................................. (50,285) (61,440)
CAPITAL SHARE TRANSACTIONS:
Net decrease in net assets from capital share transactions (a)............... (1,412,628) (3,050,121)
---------------- --------------
Total decrease in net assets.............................................. (1,475,509) (3,051,784)
Net assets at the beginning of the period...................................... 3,435,783 6,487,567
---------------- --------------
NET ASSETS at the end of the period............................................ $ 1,960,274 $ 3,435,783
---------------- --------------
---------------- --------------
</TABLE>
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(A) A SUMMARY OF CAPITAL SHARE TRANSACTIONS IS AS FOLLOWS:
<TABLE>
<CAPTION>
SIX MONTHS ENDED YEAR ENDED
JUNE 30, 1996 (UNAUDITED) DECEMBER 31, 1995
-------------------------- --------------------------
SHARES VALUE SHARES VALUE
---------- -------------- ---------- --------------
<S> <C> <C> <C> <C>
Shares sold........................................... 645 $ 4,726 91,683 $ 677,067
Shares issued in reinvestment of distributions to
shareholders........................................ 4,285 31,195 17,645 130,464
---------- -------------- ---------- --------------
4,930 35,921 109,328 807,531
Shares redeemed....................................... (199,693) (1,448,549) (521,691) (3,857,652)
---------- -------------- ---------- --------------
Net decrease..................................... (194,763) $ (1,412,628) (412,363) $ (3,050,121)
---------- -------------- ---------- --------------
---------- -------------- ---------- --------------
</TABLE>
See Notes to Financial Statements
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7
<PAGE>
ASTRA SHORT-TERM MULTI-MARKET INCOME FUND I
FINANCIAL HIGHLIGHTS
FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD
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<TABLE>
<CAPTION>
SIX MONTHS ENDED YEAR ENDED DECEMBER 31,
JUNE 30, 1996 ------------------------------------------------------
(UNAUDITED) 1995 1994 1993 1992 1991
----------------- --------- --------- --------- --------- ----------
<S> <C> <C> <C> <C> <C> <C>
PER SHARE OPERATING PERFORMANCE
Net asset value, beginning of
period............................ $ 6.76 $ 6.73 $ 6.89 $ 7.27 $ 9.31 $ 10.17
------- --------- --------- --------- --------- ----------
Income (loss) from investment
operations--
Net investment income............. 0.13 0.25 0.08 0.45 0.86 1.04
Net realized and
unrealized gain (loss) on
investments and foreign
currency transactions........... (0.05) 0.13 0.12 (0.35) (2.16) (0.88)
------- --------- --------- --------- --------- ----------
Total from investment
operations.................... 0.08 0.38 0.20 0.10 (1.30) 0.16
------- --------- --------- --------- --------- ----------
Less distributions--
Distributions from net investment
income.......................... 0.01 0.25 0.08 -- 0.74 1.02
Distributions from paid-in
capital......................... 0.12 0.10 0.28 0.48 -- --
------- --------- --------- --------- --------- ----------
Total distributions............. 0.13 0.35 0.36 0.48 0.74 1.02
------- --------- --------- --------- --------- ----------
Net asset value, end of period...... $ 6.71 $ 6.76 $ 6.73 $ 6.89 $ 7.27 $ 9.31
------- --------- --------- --------- --------- ----------
------- --------- --------- --------- --------- ----------
TOTAL RETURN (A).................... 1.27% 5.77% 2.96% 1.54% (15.08%) 1.39%
RATIOS/SUPPLEMENTAL DATA
Net assets, end of period (in
thousands)........................ $ 8,149 $ 10,601 $ 15,566 $ 27,630 $ 59,283 $ 170,377
Ratio to average net assets--
Expenses.......................... 2.80%(b)(c) 2.45% 1.68% 1.85% 1.31% 1.47%
Net investment income............. 4.03%(b)(d) 3.98% 3.42% 6.41% 9.46% 10.14%
Portfolio turnover rate............. 47% 382% 337% 151% 167% 193%
</TABLE>
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(a) Calculated without the deduction of sales charges.
(b) Annualized.
(c) Ratio of expenses to average net assets prior to expense waiver and
reimbursement from Manager was 2.84%(b).
(d) Ratio of net investment income to average net assets prior to expense waiver
and reimbursement from Manager was 3.99%(b).
See Notes to Financial Statements
- ------
8
<PAGE>
ASTRA SHORT-TERM MULTI-MARKET INCOME FUND II
FINANCIAL HIGHLIGHTS
FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD
- ------------------------------
<TABLE>
<CAPTION>
OCTOBER 1,
SIX MONTHS ENDED YEAR ENDED DECEMBER 31, 1991 (A) TO
JUNE 30, 1996 --------------------------------------------------- DECEMBER 31,
(UNAUDITED) 1995 1994 1993* 1992 1991
----------------- --------- --------- --------- --------- --------------
<S> <C> <C> <C> <C> <C> <C>
PER SHARE OPERATING
PERFORMANCE
Net asset value, beginning of
period...................... $ 7.37 $ 7.39 $ 7.71 $ 8.10 $ 9.73 $ 10.00
--------- --------- --------- --------- --------- ----------
Income (loss) from investment
operations--
Net investment income....... 0.06 0.21 0.04 0.34 0.73 0.11
Net realized and unrealized
gain (loss) on
investments and foreign
currency transactions..... (0.07) 0.08 0.01 (0.21) (1.61) (0.33)
--------- --------- --------- --------- --------- ----------
Total from investment
operations.............. (0.01) 0.29 0.05 0.13 (0.88) (0.22)
--------- --------- --------- --------- --------- ----------
Less distributions--
Distributions from net
investment income......... -- 0.21 0.04 -- 0.75 0.05
Distributions from paid-in
capital................... 0.13 0.10 0.33 0.52 -- --
--------- --------- --------- --------- --------- ----------
Total distributions....... 0.13 0.31 0.37 0.52 0.75 0.05
--------- --------- --------- --------- --------- ----------
Net asset value, end of
period...................... $ 7.23 $ 7.37 $ 7.39 $ 7.71 $ 8.10 $ 9.73
--------- --------- --------- --------- --------- ----------
--------- --------- --------- --------- --------- ----------
TOTAL RETURN (E).............. (0.16%) 3.96% 0.69% 1.63% (9.80%) (8.48%)(b)
RATIOS/SUPPLEMENTAL DATA
Net assets, end of period (in
thousands).................. $ 1,960 $ 3,436 $ 6,488 $ 8,127 $ 14,909 $ 13,040
Ratio to average net assets--
Expenses.................... 4.58%(b)(c) 3.49%(c) 2.66% 3.10% 1.87%(c) 0.16%(b)(c)
Net investment income....... 2.31%(b)(d) 2.80%(d) 2.37% 4.32% 7.85%(d) 7.59%(b)(d)
Portfolio turnover rate....... 36% 414% 301% 153% 216% 0%
</TABLE>
- ------------------
* Calculation based on average shares outstanding.
(a) Commencement of operations.
(b) Annualized.
(c) Ratio of expenses to average net assets prior to expense waiver and
reimbursement from Manager was 5.20%(b), 3.78%, 2.64% and 2.58%(b) in 1996,
1995, 1992 and 1991, respectively.
(d) Ratio of net investment income to average net assets prior to expense waiver
and reimbursement from Manager was 1.69%(b), 2.51%, 7.08% and 5.17%(b) in
1996, 1995, 1992 and 1991, respectively.
(e) Calculated without the deduction of sales charges.
See Notes to Financial Statements
- ------
9
<PAGE>
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 1996 (UNAUDITED)
- ------------------------------
NOTE 1--SIGNIFICANT ACCOUNTING POLICIES
Astra Global Investment Series (the 'Trust') is registered under the Investment
Company Act of 1940, as amended, as an open-end management investment company
and is authorized to issue shares in separate series. The Trust currently offers
shares in Astra Short-Term Multi-Market Income Fund I ('Fund I') and Astra
Short-Term Multi-Market Income Fund II ('Fund II') (collectively, the 'Funds'),
both non-diversified series. The Funds' primary investment objectives are to
provide investors with high current income with preservation of capital as
secondary objectives. To achieve these objectives, the Funds will invest in
non-diversified portfolios of high quality debt instruments having remaining
maturities of not more than 3 years denominated in the U.S. dollar and a range
of foreign currencies. The Funds may hedge their foreign currency exposure
through the use of forward selling and options.
The following is a summary of the significant accounting policies followed by
the Funds in the preparation of their financial statements.
A. SECURITY VALUATION. Portfolio securities of the Funds which are traded both
on an exchange and in the over-the-counter market are valued according to
the broadest and most representative market. All assets and liabilities
initially expressed in foreign currency values are converted into U.S.
dollar values at the mean between the bid and offered quotations of
currencies against the U.S. dollar as last quoted by any recognized dealer.
When portfolio securities are traded, the valuation is the last reported
sale price on the day of valuation. If there is no such reported sale or
the valuation is based on the over-the-counter market, the securities are
valued at the mean between the last available bid and asked prices.
Securities for which reliable quotations are not readily available and all
other assets are valued at their respective fair market value as determined
in good faith by, or under procedures established by, the Board of Trustees
of the Funds.
Money market instruments with less than sixty days to maturity when
acquired by the Fund are valued on an amortized cost basis, which
approximates market value.
B. CURRENCY TRANSLATION. The market values of all assets and liabilities
denominated in foreign currency are recorded in the financial statements
after translation to the U.S. dollar based upon exchange rates at the end
of the period. The cost basis of such assets and liabilities is determined
based upon historical exchange rates. Income and expenses are translated at
average exchange rates in effect as accrued or incurred.
C. FORWARD CURRENCY CONTRACTS. The Funds may enter into forward purchases or
sales of foreign currencies to hedge certain assets and liabilities
denominated in foreign currencies against declines in market value relative
to the U.S. dollar. Forward currency contracts are marked-to-market daily
and the change in market value is recorded by the Funds as an unrealized
gain or loss. When the forward currency contract is closed, the Funds
record a realized gain or loss equal to the difference between the value of
the forward currency contract at the time it was opened and the value at
the time it was closed. Investments in forward currency contracts may
expose the Funds to risks resulting from unanticipated movements in foreign
currency exchange rates or failure of the counterparty to the agreement to
perform in accordance with the terms of the contract.
- ------
10
<PAGE>
D. FEDERAL INCOME TAXES. The Funds intend to comply with the requirements of
the Internal Revenue Code applicable to regulated investment companies and
to distribute all of their taxable income to their shareholders. Therefore,
no Federal income tax provision is required.
E. SECURITY TRANSACTIONS AND DIVIDENDS. As is common in the industry, security
transactions are accounted for on the trade date. Interest income is
accrued as earned. Discounts and premiums on debt securities are amortized
in accordance with the provisions of the Internal Revenue Code.
Distributions to shareholders and dividend income are recorded on the
ex-dividend date. The Funds intend to declare and pay dividends monthly.
F. DEFERRED ORGANIZATION EXPENSES. All of Fund II's expenses in connection
with its organization and the public offering of its shares were paid by
Fund II. The organization expenses of Fund II are being amortized over a
period of five years from the date of commencement of operations by Fund
II. Shareholders of Fund II bear such expenses only as they are amortized
to Fund II's net investment income.
G. USE OF ESTIMATES. In preparing financial statements in accordance with
generally accepted accounting principles, management is required to make
estimates and assumptions that affect the reported amounts of assets and
liabilities and the disclosure of contingent assets and liabilities at the
date of the financial statements, and revenues and expenses during the
reporting period. Actual results could differ from those estimates.
NOTE 2--INVESTMENTS
For the six months ended June 30, 1996, the cost of purchases and the proceeds
from sales of securities, excluding short-term notes, were $4,300,591 and
$5,367,353, respectively, for Fund I and $986,400 and $2,659,287, respectively,
for Fund II.
On June 30, 1996, Fund I held certain restricted securities (i.e., securities
which may not be publicly sold without registration under the Securities Act of
1993 ('33 Act) or without an exemption under the '33 Act). These securities are
valued at fair value as determined by the Board of Trustees by considering
quality, dividend rate, and marketability of the securities compared to similar
issues.
On June 30, 1996, and on the acquisition dates of the restricted securities,
there were no market quotations available for unrestricted securities of the
same class. The date of acquisition and costs of restricted securities are as
follows:
<TABLE>
<CAPTION>
DATE OF
ACQUISITION COST
----------- -------------
<S> <C> <C>
Westfed Holdings, Inc.,
15.50% Pfd................ 9/23/88 $ 6,180,331
Westfed Holdings, Inc.,
Series B Common........... 9/23/88 638
-------------
Total restricted securities
(market value of $2 at
June 30, 1996)............ $ 6,180,969
-------------
-------------
</TABLE>
Fund I will not pay the costs of disposition of the above restricted securities
other than ordinary brokerage fees, if any.
- ------
11
<PAGE>
At December 31, 1995, the funds had capital loss carryforwards for federal
income tax purposes as follows:
<TABLE>
<CAPTION>
CAPITAL LOSS EXPIRES
CARRYFORWARD DECEMBER 31
-------------- ---------------
<S> <C> <C>
Fund I................. $ 15,889,783 1996
30,519,253 1997
16,993,222 1998
7,987,637 2000
10,290,576 2001
39,930 2003
--------------
$ 81,720,401
--------------
--------------
Fund II................ $ 281,854 2000
1,175,535 2001
24,582 2002
--------------
$ 1,481,971
--------------
--------------
</TABLE>
NOTE 3--CAPITAL SHARES
At June 30, 1996, the authorized capital of the Funds consisted of an unlimited
number of shares of beneficial interest without par value.
NOTE 4--DISTRIBUTION PLANS
A. FUND I DISTRIBUTION PLAN. Fund I has adopted a distribution plan pursuant
to Rule 12b-1 under the 1940 Act (the 'Distribution Plan'), whereby it may
pay up to a maximum annual rate of 0.30% of its average daily net assets to
Astra Fund Distributors Corp. ('Distributors'), its principal underwriter,
for expenses incurred in the distribution of the shares of Fund I. Pursuant
to this Distribution Plan, Distributors is entitled to reimbursement each
month for its actual expenses incurred in the distribution and promotion of
Fund I's shares, including the printing of prospectuses and reports used
for sales purposes, expenses of preparation and printing of sales
literature and other such distribution related expenses, including any
distribution or service fees paid to securities dealers who have executed a
distribution agreement with Distributors. The Distribution Plan permits
Distributors to carryforward for a maximum of three years (without carrying
charges) distribution expenses from prior years covered by the Distribution
Plan for which Distributors has not received reimbursement. At June 30,
1996, Distributors had incurred $370,734 of distribution expenses in excess
of amounts currently reimbursable by the Fund.
During the six months ended June 30, 1996, Fund I reimbursed Distributors
$13,915 for distribution expenses. Reimbursable expenses incurred by
Distributors during the six months ended June 30, 1996, included $1,413 for
the costs of personnel involved with the promotion and distribution of Fund
I's shares.
B. FUND II DISTRIBUTION PLAN. Fund II has adopted a distribution plan pursuant
to Rule 12b-1 under the 1940 Act (the 'Distribution Plan'), whereby it will
provide daily compensation to Distributors in the form of sales commissions
equal to 4% of the amount received by Fund II for each share sold
(excluding reinvestment of dividends and distributions) plus an interest
fee calculated by applying the rate of 1% over prime rate to the
outstanding balance of Uncovered Distribution Charges. Daily compensation
payments will be made monthly and are limited to an annual rate of .75%
Fund II's daily net assets. During the six months ended June 30, 1996,
Distributors earned $10,375 in daily compensation. At June 30, 1996,
Uncovered Distribution Charges (cumulative sales commissions and interest
fees reduced by cumulative daily compensation and contingent deferred sales
charges paid to Distributors) amounted to $708,695.
Fund II has adopted a shareholder maintenance agreement that provides
monthly payments to Distributors of a trail or maintenance fee in an amount
equal to an annual rate of .25% of Fund II's daily net assets. During the
six months ended June 30, 1996, Distributors earned maintenance fees of
$3,458.
- ------
12
<PAGE>
NOTE 5--INVESTMENT MANAGEMENT FEE AND OTHER TRANSACTION WITH AFFILIATES
Astra Management Corp. (the 'Manager') provides the Funds with investment
management and administrative services under an Investment Management Agreement.
The Manager furnishes all investment advice, office space and salaries of
personnel needed by the Funds, except those involved with recordkeeping, daily
net asset value calculations, shareholder servicing, placing orders for the
execution of portfolio transactions, and maintaining registration of shares
under state securities laws. As compensation for its services, the Manager is
paid monthly a fee which is equal to the annual rate of 0.625% on the first $1
billion of average daily net assets for each fund and is reduced on assets in
excess of that amount.
The Manager has agreed to reduce its aggregate fees for any fiscal year, or to
reimburse the Funds to the extent required, so that the Funds' expenses do not
exceed the expense limitations applicable to the Funds under the securities laws
or regulations of those states or jurisdictions in which the Funds' shares are
registered or qualified for sale. Currently, the most restrictive of such
expense limitations would require the Manager to reimburse the Funds to the
extent required so that the Funds' expenses, as described below, for any fiscal
year do not exceed 2 1/2% of the first $30 million of the Funds' average daily
net assets, 2% of the next $70 million of the Funds' average net assets and
1 1/2% of the Funds' remaining average net assets. The amount of any such
required reimbursement, however, is limited to the management fees paid by the
Funds to the Manager. Expenses for purposes of this expense limitation include
the management fee, but exclude distribution expenses, brokerage commissions and
fees, taxes, interest and extraordinary expenses such as litigation, paid or
incurred by the Funds. During the six months ended June 30, 1996, the Manager
reimbursed $2,109 and $8,645 of expenses of Fund I and Fund II, respectively,
pursuant to these expense limitation provisions.
Certain officers and trustees of the Trust are also officers and/or directors of
the Manager and Distributors.
NOTE 6--EARLY WITHDRAWAL CHARGE
Shares of Fund II redeemed within the first four years of their purchase will be
subject to a contingent deferred sales charge. The contingent deferred sales
charge will not, however, be imposed on shares acquired through the reinvestment
of distributions, or on the appreciation of the value of shares acquired within
the preceding four year period over the purchase price of such shares.
Redemption proceeds will be applied first against shares not subject to the
contingent deferred sales charge for purposes of calculating such charge. The
contingent deferred sales charge is paid by the investor to Distributors and is
imposed at the rate of 4% for redemptions in the first year after purchase,
declining to 3%, 2%, and 1% in the second, third and fourth years, respectively.
During the six months ended June 30, 1996, Distributors received contingent
deferred sales charges of $2,167.
- ------
13
<PAGE>
ASTRA GROUP
FAMILY OF FUNDS
- ------------------------------
ADJUSTABLE-INCOME FUNDS
- ------------------------------
ASTRA ADJUSTABLE U.S. GOVERNMENT SECURITIES TRUST I
ASTRA ADJUSTABLE U.S. GOVERNMENT SECURITIES TRUST I-A
ASTRA ADJUSTABLE U.S. GOVERNMENT SECURITIES TRUST II
ASTRA ADJUSTABLE U.S. GOVERNMENT SECURITIES TRUST IV
ASTRA ADJUSTABLE RATE SECURITIES TRUST I
ASTRA ADJUSTABLE RATE SECURITIES TRUST I-A
ASTRA ADJUSTABLE RATE SECURITIES TRUST IV
FIXED-INCOME FUNDS
- ------------------------------
ASTRA ALL-AMERICAS GOVERNMENT INCOME TRUST
ASTRA SHORT-TERM MULTI-MARKET INCOME FUND I
ASTRA SHORT-TERM MULTI-MARKET INCOME FUND II
- ------------------
Prospectuses containing more complete information about the Funds, including
charges and expenses, may be obtained from Astra Fund Distributors Corp. Read
the Prospectus carefully before you invest or send money.
- ------
14
<PAGE>
750 B Street
Suite 2350
San Diego, CA 92101
ASTRA SHORT-TERM MULTI-MARKET
INCOME FUND I & II
Investment Manager
Astra Management Corp.
750 B Street
Suite 2350
San Diego, CA 92101
1-619-238-7100
Principal Underwriter
Astra Fund Distributors Corp.
750 B Street
Suite 2350
San Diego, CA 92101
1-800-219-1080
Shareholder Servicing Agent
DST Systems, Inc.
P.O. Box 419174
Kansas City, Missouri 64141
1-800-441-7267
Transfer Agent
Investors Fiduciary Trust Company
c/o DST Systems, Inc.
P.O. Box 419174
Kansas City, Missouri 64141
This report is submitted for the general information of the shareholders of the
Funds. It is not authorized for distribution to prospective investors in the
Funds unless preceded or accompanied by an effective prospectus which includes
details regarding the Funds' objectives, policies, sales commissions and other
information.
ST I/II 896 2.0 AST 607134
[ASTRA LOGO]
ASTRA
SHORT-TERM
MULTI-MARKET
INCOME FUND I & II
SEMI-ANNUAL REPORT
JUNE 30, 1996
