ASTRA SHORT-TERM MULTI-MARKET INCOME FUND I & II ANNUAL REPORT
February 20, 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") continue to show progress with regard to total return from an investment
in short-term international government securities and other high quality debt
obligations. For the year ending December 31, 1995, Fund I and Fund II provided
total returns of 5.77% and 3.96% respectively.* The Astra funds followed a very
conservative strategy of holding above average balances of U.S. cash or cash
equivalents in order to preserve and stabilize NAV. In addition, the funds
selectively added positions in other countries whose economic profile showed
slow economic growth and low inflation.
During the past year, global bond markets were generally characterized as
bullish, driven by declining economic growth and inflation prospects. For
example, U.S. economic growth slowed from 4.0 percent to approximately 2.0
percent from year-end 1994 to year-end 1995. As previously mentioned, inflation
was lower in 1995 for most of the G-7 countries than had been anticipated.
However, the currency market was somewhat tumultuous. The U.S. dollar suffered a
crisis of confidence in early 1995, culminating in a sharp plunge in the
currency and unanimous negative sentiment in March and April. Since then, the
U.S. dollar has exhibited a delicate trend upwards, reflecting the fact that the
phase of rebuilding confidence has begun.
Looking forward, it appears that the U.S. dollar may continue to appreciate
against other major currencies. Additionally, the global bond-market rally that
began in late 1994/early 1995 remains essentially intact and is expected to
continue throughout 1996. With the exception of Japan, where yields fell far
below their equilibrium level in 1995, the prospect for further declines in both
short- and long-term interest rates on a global scale looks quite favorable.
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 New Zealand and Canadian dollars. Both
currencies enjoy a substantial real yield pick-up over comparable U.S. dollar
and Australian dollar assets. Within the DM-bloc, the Funds favor overweight
positions in the higher-yielding European countries such as Spain, Sweden, and
Denmark.
<PAGE>
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
offering price for Fund I and the net asset value for Fund II 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 and after reduction for a 4% contingent deferred
sales charge for Fund II. Sales charges or commissions are not reflected in
the total returns. Total return for the year ended December 31, 1995 was
2.57% and (0.03%) 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.
2
<PAGE>
ASTRA SHORT-TERM MULTI-MARKET INCOME FUND I & II
MANAGEMENT DISCUSSION AND ANALYSIS
- ---------------------
GENERAL ECONOMIC AND MARKET ENVIRONMENT
During the past year, global bond markets were generally characterized as
bullish, driven by declining economic growth and inflation prospects. For
example, U.S. economic growth slowed from 4.0 percent to approximately 2.0
percent from year-end 1994 to year-end 1995. As previously mentioned, inflation
was lower in 1995 for most of the G-7 countries than had been anticipated.
However, the currency market was somewhat tumultuous. The U.S. dollar suffered a
crisis of confidence in early 1995, culminating in a sharp plunge in the
currency and unanimous negative sentiment in March and April. Since then, the
U.S. dollar has exhibited a delicate trend upwards, reflecting the fact that the
phase of rebuilding confidence has begun.
GLOBAL FIXED INCOME MARKETS IN PARTICULAR
The U.S. interest rate environment during the past fiscal year, as well as
specific economic and political developments in each country, combined to create
a tremendous impact on the global fixed income sector. In general, the global
bond market can be summarized as bullish with the U.S. dollar outperforming
other currencies since April 1995.
CANADA
During the last half of the year the Canadian fixed income markets experienced
significant volatility driven by the threat of the Quebec province becoming its
own country. This threat put the Canadian markets in a bearish mode as investors
were unwilling to own Canadian government securities, subsequently causing a
weakening in the Canadian dollar. However, Quebec's vote was turned down and
since that time the Canadian fixed income markets have experienced a resurgence
with an improving Canadian dollar and lower bond yields. Since the December 19,
1995 reduction in interest rates by the Bank of Canada, the Canadian dollar has
appreciated by over 3.0 percent against its U.S. counterpart. With domestic
economic growth on a weakening trend (real GDP fell by 0.3% in October 1995) and
inflation declining, there is a dire need from a domestic perspective for lower
interest rates. In addition, the Canadian fixed income market also appears to be
benefiting from a global trend that is favoring high-yielding bond markets due
to the low level of yields in Germany, Japan, and the U.S.
SPAIN
During 1995, the impetus to Spanish growth has shifted to domestic demand from
the external sector, and that pattern should continue through 1996. Business
investment has been recovering strongly while consumption has remained somewhat
sluggish; this pattern is expected to reverse itself in 1996 with slower
investment and stronger consumption. Real GDP growth for 1996 is expected to be
around 2.3% Unemployment remains Spain's biggest structural economic problem.
However, new job creation has been quite strong in the present recovery. Wage
restraint over the 1994-95 period has helped bring annual consumer price
inflation down to 4.3% recently, and a further decline in the annual rate is
expected through 1996.
DENMARK & SWEDEN
Both Sweden and Denmark continued appropriate economic policies of gradually
reducing short-term interest rates while closely monitoring inflation and
domestic growth. Annual GDP growth for both countries is expected to equal
2.0-2.5% and inflation is expected to remain relatively stable at between
2.2-2.6%.
3
<PAGE>
ANALYSIS OF THE ASTRA SHORT-TERM MULTI-MARKET INCOME FUNDS
Given the previously described scenarios in both the U.S. and global fixed
income markets, the major focus of the Astra Short-Term Multi-Market Income
Funds was to cautiously decrease exposure in U.S. government securities and
selectively add government securities of countries whose credit profiles were
relatively stable or improving. Consequently, the Funds remained over invested
in U.S. cash or cash equivalents during the first part of 1995 causing the funds
to somewhat underperform competitors. On the other hand, the Funds' share prices
showed somewhat less volatility than would have been the case if they had been
fully invested in European government debt.
4
<PAGE>
COMPARISON OF THE CHANGE IN VALUE OF A $10,000 INVESTMENT IN THE ASTRA
SHORT-TERM MULTI-MARKET INCOME FUND I AND THE SALOMON BROTHERS
CURRENCY HEDGED 1-5 YEAR WORLD GOVERNMENT INDEX
----GRAPHICAL REPRESENTATION OF DATA TABLE BELOW----
Average Annual Total Returns
December 31, 1995
1 Year 5 Year Since Inception*
2.57% -1.57% -3.12%
<TABLE>
<CAPTION>
Inception 12/31/86 12/31/87 12/31/88 12/31/89
--------- -------- -------- -------- --------
<S> <C> <C> <C> <C> <C>
Astra Short-Term Multi-Market Income Fund I $ 9,701.20 $10,586.45 $ 9,577.55 $10,560.30 $ 9,006.55
Salomon Brothers Currency Hedged 1-5 Year World Government Index*** 10,000.00 11,089.57 11,831.30 12,658.08 13,720.37
</TABLE>
<TABLE>
<CAPTION>
12/31/90 12/31/91 12/31/92 12/31/93 12/31/94
--------- -------- -------- -------- --------
<S> <C> <C> <C> <C> <C>
Astra Short-Term Multi-Market Income Fund I $ 7,659.99 $ 7,766.17 $ 6,595.34 $ 6,696.66 $ 6,894.95
Salomon Brothers Currency Hedged 1-5 Year World Government Index*** 14,824.67 16,465.22 17,609.48 19,044.71 18,924.60
</TABLE>
<TABLE>
<CAPTION>
12/31/95
---------
<S> <C>
Astra Short-Term Multi-Market Income Fund I $ 7,292.56
Salomon Brothers Currency Hedged 1-5 Year World Government Index*** 21,457.99
</TABLE>
NOTE: INCLUDES ALL SALES CHARGES
Performance data represents past performance. Past performance is not predictive
of future performance. 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.
* In the past, the Fund's investment manager has voluntarily waived all or a
portion of its management fees or assumed responsibility for other
expenses, which reduced operating expenses and increased total return to
shareholders. Without these reductions, the total return would have been
lower.
** From inception through July 2, 1990, the Fund operated as Pilgrim Preferred
Fund investing in high yield preferred stock, with the objective of
providing high after-tax income for corporations and high current income
for individuals.
*** A subset of the Salomon Brothers World Government Bond Index. Please note
that indices do not take into account any fees and expenses of investing in
the individual securities that they track, and that individuals cannot
invest directly in any index.
5
<PAGE>
COMPARISON OF THE CHANGE IN VALUE OF A $10,000 INVESTMENT IN THE ASTRA
SHORT-TERM MULTI-MARKET INCOME FUND II, THE SALOMON BROTHERS
CURRENCY HEDGED 1-5 YEAR WORLD GOVERNMENT INDEX AND THE LEHMAN
BROTHERS MUTUAL FUND SHORT WORLD MULTI-MARKET INDEX
----GRAPHICAL REPRESENTATION OF DATA TABLE BELOW----
Average Annual Total Returns
December 31, 1995
1 Year Since Inception*
-0.03% -1.48%
<TABLE>
<CAPTION>
Inception
10/01/91 12/31/91 12/31/92 12/31/93 12/31/94
-------- -------- -------- -------- --------
<S> <C> <C> <C> <C> <C>
Astra Short-Term Multi-Market Income Fund II $10,000.00 $ 9,779.09 $ 8,820.45 $ 8,964.49 $ 9,026.65
Salomon Brothers Currency Hedged 1-5 Year World Government Index*** 10,000.00 10,325.33 11,042.89 11,942.92 11,867.60
Lehman Brothers Mutual Fund Short World Multi-Market Index** 10,000.00 10,693.92 11,097.51 11,936.98 12,439.80
</TABLE>
<TABLE>
<CAPTION>
12/31/95
---------
<S> <C>
Astra Short-Term Multi-Market Income Fund II $ 9,384.46
Salomon Brothers Currency Hedged 1-5 Year World Government Index*** 13,456.29
Lehman Brothers Mutual Fund Short World Multi-Market Index** 14,400.17
</TABLE>
NOTE: INCLUDES ALL SALES CHARGES
Performance data represents past performance. Past performance is not predictive
of future performance. 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.
* In the past, the Fund's investment manager has voluntarily waived all or a
portion of its management fees or assumed responsibility for other
expenses, which reduced operating expenses and increased total return to
shareholders. Without these reductions, the total return would have been
lower.
** The Lehman Brothers Mutual Fund Short World Multi-Market Index is comprised
of all debt instruments of the United States and 12 Lehman Major countries
denominated in dollars with maturities of one to five years. Please note
that indicies do not take into account any fees and expenses of investing
in the individual securities that they track, and that individuals cannot
invest directly in any index.
*** A subset of the Salomon Brothers World Government Bond Index. Please note
that indices do not take into account any fees and expenses of investing in
the individual securities that they track, and that individuals cannot
invest directly in any index.
NOTE: Effective January 1, 1996, the Fund is changing its index from Lehman
Brothers Mutual Fund Short World Multi-Market Index to Salomon Brothers Currency
Hedged 1-5 Year World Government Index. The Salomon index is more reflective of
the Fund's investment objectives. Both indicies are displayed for illustrative
purposes for 1995.
6
<PAGE>
<TABLE>
ASTRA SHORT-TERM MULTI-MARKET INCOME FUND I
PORTFOLIO OF INVESTMENTS AS OF DECEMBER 31, 1995
- ---------------------
<CAPTION>
Principal
Amount* Value
--------- -----
<C> <S> <C> <C>
BONDS AND NOTES: 93.4%
CANADA: 5.2%
750,000 Canadian Government Bond, 6.25%, Due 2/1/98 ......................... $ 553,545
-----------
DENMARK: 10.5%
6,000,000 Denmark Government Bond, 7.0%, Due 8/15/97 .......................... 1,113,716
-----------
ITALY: 4.4%
750,000,000 Italian Government Bond, 9.5% Due 12/1/97 ........................... 467,186
-----------
SPAIN: 15.1%
199,000,000 Spanish Government Bond, 7.3%, Due 7/30/97 .......................... 1,603,527
-----------
SWEDEN: 5.5%
3,800,000 Swedish Government Bond, 10.75%, Due 1/23/97 ........................ 586,028
-----------
UNITED STATES: 52.7%
5,470,000 U.S. Treasury Note, 6.125%, Due 5/15/98 ............................. 5,582,244
-----------
Total Bonds and Notes (Cost $9,742,184) ............................ 9,906,246
-----------
SHORT-TERM INVESTMENT: 4.9%
AUSTRALIA: 4.9%
700,000 Australian Treasury Bill, Due 01/30/96 .............................. 517,975
-----------
Total Short-Term Investment (Cost $529,964) ........................ 517,975
-----------
Shares
------
PREFERRED STOCK: 0.0%
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
-----------
TOTAL INVESTMENTS IN SECURITIES
(COST $16,453,117)** (NOTES 1A AND 2) ..................... 98.3% 10,424,223
CASH AND OTHER ASSETS IN EXCESS OF LIABILITIES ............. 1.7% 176,925
----- -----------
TOTAL NET ASSETS .......................................... 100.0% $10,601,148
===== ===========
(R) Restricted securities (see Note 2).
(a) Non-income producing security.
- ----------
* Stated in local currencies unless otherwise noted.
** Cost for Federal income tax purposes is $16,453,117 and unrealized depreciation consists of:
Gross Unrealized Appreciation ....................................... $ 164,062
Gross Unrealized Depreciation ....................................... (6,192,956)
----------
Net Unrealized Depreciation ...................................... ($6,028,894)
==========
See Notes to Financial Statements
</TABLE>
7
<PAGE>
<TABLE>
ASTRA SHORT-TERM MULTI-MARKET INCOME FUND II
PORTFOLIO OF INVESTMENTS AS OF DECEMBER 31, 1995
- ---------------------
<CAPTION>
Principal
Amount* Value
--------- -----
<C> <S> <C> <C>
BONDS AND NOTES: 91.0%
CANADA: 5.4%
250,000 Canadian Government Bond, 6.25%, Due 2/1/98 ......................... $ 184,515
-----------
DENMARK: 10.8%
2,000,000 Denmark Government Bond, 7.00%, Due 8/15/97 ......................... 371,239
-----------
ITALY: 4.5%
250,000,000 Italian Government Bond, 9.5%, Due 12/1/97 .......................... 155,729
-----------
SPAIN: 15.5%
66,000,000 Spanish Government Bond, 7.30%, Due 7/30/97 ......................... 531,823
-----------
SWEDEN: 5.8%
1,300,000 Swedish Government Bond, 10.75%, Due 1/23/97 ........................ 200,483
-----------
UNITED STATES: 49.0%
1,650,000 U.S. Treasury Note, 6.125%, Due 5/15/98 ............................. 1,683,858
-----------
Total Bonds and Notes (Cost $3,076,969) ............................ 3,127,647
-----------
SHORT-TERM INVESTMENT: 6.5%
AUSTRALIA: 6.5%
300,000 Australian Treasury Bill, Due 1/30/96 ................................ 221,989
-----------
Total Short-Term Investment (Cost $227,127) ......................... 221,989
-----------
TOTAL INVESTMENTS IN SECURITIES
(COST $3,304,096)** (NOTES 1A AND 2) ...................... 97.5% 3,349,636
CASH AND OTHER ASSETS IN EXCESS OF LIABILITIES ............. 2.5% 86,147
----- -----------
TOTAL NET ASSETS .......................................... 100.0% $ 3,435,783
===== ===========
- -----------
* Stated in local currencies unless otherwise noted.
** Cost for Federal income tax purposes is $3,304,096 and net unrealized appreciation consists of:
Gross Unrealized Appreciation ......................................... $50,678
Gross Unrealized Depreciation ......................................... (5,138)
-------
Net Unrealized Appreciation ........................................ $45,540
=======
See Notes to Financial Statements
</TABLE>
8
<PAGE>
<TABLE>
ASTRA SHORT-TERM MULTI-MARKET INCOME FUNDS
SCHEDULE OF OPEN FORWARD CURRENCY CONTRACTS
DECEMBER 31, 1995
- ---------------------
<CAPTION>
Principal Delivery Unrealized
Amount* Date Proceeds Depreciation
---------- -------- -------- ------------
<C> <S> <C> <C> <C>
FUND I:
OPEN FORWARD CURRENCY CONTRACT:**
700,000 Australian Dollars-sold forward ........... 01/30/96 ($514,395) ($5,789)
========
FUND II:
OPEN FORWARD CURRENCY CONTRACT:**
300,000 Australian Dollars-sold forward ........... 01/30/96 ($220,455) ($2,481)
========
</TABLE>
- ---------
* Stated in local currencies.
** Included in Statement of Assets and Liabilities as Payable for Open Forward
Currency Contracts.
See Notes to Financial Statements
9
<PAGE>
<TABLE>
ASTRA SHORT-TERM MULTI-MARKET INCOME FUNDS
STATEMENT OF ASSETS AND LIABILITIES
DECEMBER 31, 1995
- ---------------------
<CAPTION>
Fund I Fund II
------------ ------------
<S> <C> <C>
ASSETS:
Investments in securities, at value (identified cost $16,453,117 and
$3,304,096, respectively) (Notes 1A and 2) ........................................... $ 10,424,223 $ 3,349,636
Cash .................................................................................. 66,453 32,174
Receivables:
Interest ............................................................................. 198,974 65,213
Capital stock sold ................................................................... -- 434
Expense reimbursement from Manager (Note 6) .......................................... -- 13,415
Prepaid expenses ...................................................................... 14,607 5,995
Deferred organization expenses (Net of accumulated amortization of
$53,275) (Note 1G) ................................................................... -- 21,144
------------ ------------
Total Assets ........................................................................ 10,704,257 3,488,011
------------ ------------
LIABILITIES:
Payables:
Open forward currency contracts (Note 1C) ............................................ 5,789 2,481
Capital stock redeemed ............................................................... 51,483 30,414
Accrued expenses ...................................................................... 45,837 19,333
------------ ------------
Total Liabilities ................................................................... 103,109 52,228
------------ ------------
NET ASSETS ............................................................................ $ 10,601,148 $ 3,435,783
============ ============
COMPUTATION OF OFFERING PRICE:
Net asset value and redemption price per share
($10,601,148 / 1,567,567 shares and $3,435,783 / 465,980
shares, respectively) (Note 7) ....................................................... $ 6.76 $ 7.37
============ ============
Offering price per share ($6.76 / 97% and $7.37 / 100%) ............................... $ 6.97* $ 7.37
============ ============
- ------------
* On investments of $100,000 or more the offering price is reduced.
At December 31, 1995 the components of net assets were as follows:
Paid-in capital ....................................................................... $ 98,481,706 $ 4,920,399
Accumulated net realized losses on investments ........................................ (81,720,401) (1,481,971)
Accumulated net realized losses from forward
currency contracts and foreign currency transactions ................................. (128,617) (46,777)
Net unrealized appreciation (depreciation) of investments and
foreign currency transactions ........................................................ (6,031,540) 44,132
------------ ------------
$ 10,601,148 $ 3,435,783
============ ============
</TABLE>
See Notes to Financial Statements
10
<PAGE>
<TABLE>
ASTRA SHORT-TERM MULTI-MARKET INCOME FUNDS
STATEMENT OF OPERATIONS
FOR THE YEAR ENDED DECEMBER 31, 1995
- ---------------------
<CAPTION>
Fund I Fund II
--------- ---------
<S> <C> <C>
INVESTMENT INCOME:
Income:
Interest ................................................................................ $811,407 $294,589
-------- --------
Expenses:
Investment management fees (Note 6) ...................................................... 78,861 29,248
Distribution expenses (Note 5) ........................................................... 37,853 46,797
Professional fees ........................................................................ 48,141 28,126
Transfer agent fees ...................................................................... 54,537 22,841
Recordkeeping fees ....................................................................... 39,024 11,701
Registration and filing fees ............................................................. 15,875 13,198
Custody fees ............................................................................. 11,415 5,461
Reports to shareholders .................................................................. 11,316 3,900
Amortization of organization expenses (Note 1G) .......................................... -- 9,337
Miscellaneous ............................................................................ 6,646 4,247
Insurance expense ........................................................................ 3,765 1,319
Trustees' fees ........................................................................... 1,796 764
-------- --------
Total expenses ......................................................................... 309,229 176,939
Expense waiver (Note 6) .................................................................. -- (13,415)
-------- --------
Net expenses ........................................................................... 309,229 163,524
-------- --------
Net investment income .................................................................. 502,178 131,065
-------- --------
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS AND
FOREIGN CURRENCY TRANSACTIONS:
Net realized gain on investments ......................................................... 10,396 51,681
Net realized loss from forward currency contracts and foreign
exchange transactions ................................................................... (73,238) (30,514)
-------- --------
Net realized gain (loss) ................................................................. (62,842) 21,167
Net change in unrealized appreciation (depreciation) of investments,
forward currency contracts and foreign currency transactions ............................ 292,667 43,768
-------- --------
Net realized and unrealized gain on investments and foreign currency
transactions ............................................................................ 229,825 64,935
-------- --------
Net increase in net assets resulting from operations .................................. $732,003 $196,000
======== ========
</TABLE>
See Notes to Financial Statements
11
<PAGE>
<TABLE>
ASTRA SHORT-TERM MULTI-MARKET INCOME FUND I
STATEMENT OF CHANGES IN NET ASSETS
FOR THE YEARS ENDED DECEMBER 31,
- ---------------------
<CAPTION>
1995 1994
------------ ------------
<S> <C> <C>
OPERATIONS:
Net investment income ................................................................. $ 502,178 $ 689,967
Net realized gain on investments ...................................................... 10,396 205,667
Net realized loss from forward currency contracts and
foreign exchange transactions ....................................................... (73,238) (518,200)
Net change in unrealized depreciation of investments, forward
currency contracts and foreign currency transactions ................................. 292,667 130,756
----------- -----------
Net increase in net assets resulting from operations .................................. 732,003 508,190
DISTRIBUTION TO SHAREHOLDERS (NOTE 4):
Distributions from net investment income ($0.25 and $0.08 per share,
respectively) ....................................................................... (470,288) (249,879)
Distributions from paid-in capital ($0.10 and $0.28 per share,
respectively) ....................................................................... (196,366) (848,985)
CAPITAL SHARE TRANSACTIONS:
Net decrease in net assets from capital share transactions (a) ....................... (5,030,683) (11,472,489)
----------- -----------
Total decrease in net assets ........................................................ (4,965,334) (12,063,163)
Net Assets at the beginning of the period ............................................. 15,566,482 27,629,645
----------- -----------
NET ASSETS at the end of the period (including accumulated net
investment deficit of $0 and $37, respectively) ....................................... $10,601,148 $15,566,482
=========== ===========
(A) A SUMMARY OF CAPITAL SHARE TRANSACTIONS IS AS FOLLOWS:
<CAPTION>
1995 1994
--------------------------- -----------------------------
Shares Value Shares Value
-------- ----------- ---------- ------------
Shares sold ............................................ 16,884 $ 113,670 45,653 $ 308,780
Shares issued in reinvestment of distributions
to shareholders ....................................... 49,436 333,216 79,809 538,785
-------- ----------- ---------- ------------
66,320 446,886 125,462 847,565
Shares redeemed ........................................ (810,824) (5,477,569) (1,822,030) (12,320,054)
-------- ----------- ---------- ------------
Net decrease ...................................... (744,504) $(5,030,683) (1,696,568) $(11,472,489)
======== =========== ========== ============
</TABLE>
See Notes to Financial Statements
12
<PAGE>
<TABLE>
ASTRA SHORT-TERM MULTI-MARKET INCOME FUND II
STATEMENT OF CHANGES IN NET ASSETS
FOR THE YEARS ENDED DECEMBER 31,
- ---------------------
<CAPTION>
1995 1994
---------- ----------
<S> <C> <C>
OPERATIONS:
Net investment income ............................................................... $ 131,065 $ 145,658
Net realized gain (loss) on investments ............................................. 51,681 (24,582)
Net realized loss from forward currency contracts and
foreign exchange transactions ..................................................... (30,514) (195,299)
Net change in unrealized appreciation (depreciation) of investments,
forward currency contracts and foreign currency transactions ...................... 43,768 75,896
---------- ----------
Net increase in net assets resulting from operations ................................ 196,000 1,673
DISTRIBUTIONS TO SHAREHOLDERS (NOTE 4):
Distributions from net investment income
($0.21 and $0.04 per share, respectively) ......................................... (136,223) (31,336)
Distributions from paid-in capital ($0.10 and $0.33 per share,
respectively) ..................................................................... (61,440) (280,892)
CAPITAL SHARE TRANSACTIONS:
Net decrease in net assets from capital share transactions (a) ...................... (3,050,121) (1,328,660)
---------- ----------
Total decrease in net assets ....................................................... (3,051,784) (1,639,215)
Net assets at the beginning of the period ............................................ 6,487,567 8,126,782
---------- ----------
NET ASSETS at the end of the period (including accumulated net
investment deficit of $0 and $258, respectively ..................................... $3,435,783 $6,487,567
========== ==========
(a) A SUMMARY OF CAPITAL SHARE TRANSACTIONS IS AS FOLLOWS:
<CAPTION>
1995 1994
------------------------- -------------------------
Shares Value Shares Value
-------- ----------- -------- -----------
<S> <C> <C> <C> <C>
Shares sold ....................................................... 91,683 $ 677,067 526,314 $ 3,919,166
Shares issued in reinvestment of distributions
to shareholders ................................................. 17,645 130,464 22,319 167,074
-------- ----------- -------- -----------
109,328 807,531 548,633 4,086,240
Shares redeemed ................................................... (521,691) (3,857,652) (723,755) (5,414,900)
-------- ----------- -------- -----------
Net decrease ................................................. (412,363) $(3,050,121) (175,122) $(1,328,660)
======== =========== ======== ===========
</TABLE>
See Notes to Financial Statements
13
<PAGE>
<TABLE>
ASTRA SHORT-TERM MULTI-MARKET INCOME FUND I
FINANCIAL HIGHLIGHTS
FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD
- ---------------------
<CAPTION>
Year Ended December 31,
------------------------------------------------------
1995 1994 1993 1992 1991
----- ----- ----- ----- ------
<S> <C> <C> <C> <C> <C>
PER SHARE OPERATING PERFORMANCE
Net asset value, beginning of period ........................ $6.73 $6.89 $7.27 $9.31 $10.17
----- ----- ----- ----- ------
Income (loss) from investment operations--
Net investment income ..................................... 0.25 0.08 0.45 0.86 1.04
Net realized and unrealized gain (loss) on
investments and foreign currency transactions ........... 0.13 0.12 (0.35) (2.16) (0.88)
----- ----- ----- ----- ------
Total from investment operations ...................... 0.38 0.20 0.10 (1.30) 0.16
----- ----- ----- ----- ------
Less distributions--
Distributions from net investment income .................. 0.25 0.08 -- 0.74 1.02
Distributions from paid-in capital ........................ 0.10 0.28 0.48 -- --
----- ----- ----- ----- ------
Total distributions ................................... 0.35 0.36 0.48 0.74 1.02
----- ----- ----- ----- ------
Net asset value, end of period .............................. $6.76 $6.73 $6.89 $7.27 $9.31
===== ===== ===== ===== =====
TOTAL RETURN (a) ............................................ 5.77% 2.96% 1.54% (15.08%) 1.39%
RATIOS/SUPPLEMENTAL DATA
Net assets, end of period (in thousands) .................... $10,601 $15,566 $27,630 $59,283 $170,377
Ratio to average net assets--
Expenses .................................................. 2.45% 1.68% 1.85% 1.31% 1.47%
Net investment income ..................................... 3.98% 3.42% 6.41% 9.46% 10.14%
Portfolio turnover rate ..................................... 382% 337% 151% 167% 193%
- -------------
<FN>
(a) Calculated without the deduction of sales charges.
</FN>
</TABLE>
See Notes to Financial Statements
14
<PAGE>
<TABLE>
ASTRA SHORT-TERM MULTI-MARKET INCOME FUND II
FINANCIAL HIGHLIGHTS
FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD
- ---------------------
<CAPTION>
October 1,
Year Ended December 31, 1991 (a) to
----------------------------------------- December 31,
1995 1994 1993* 1992 1991
----- ----- ----- ----- ------------
<S> <C> <C> <C> <C> <C>
PER SHARE OPERATING PERFORMANCE
Net asset value, beginning of period ........................... $7.39 $7.71 $8.10 $9.73 $10.00
----- ----- ----- ----- ------
Income (loss) from investment operations--
Net investment income ....................................... 0.21 0.04 0.34 0.73 0.11
Net realized and unrealized gain
(loss) on investments and
foreign currency transactions ............................. 0.08 0.01 (0.21) (1.61) (0.33)
----- ----- ----- ----- ------
Total from investment operations ........................ 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 ........................... 0.10 0.33 0.52 -- --
----- ----- ----- ----- ------
Total distributions ........................................ 0.31 0.37 0.52 0.75 0.05
----- ----- ----- ----- ------
Net asset value, end of period ................................. $7.37 $7.39 $7.71 $8.10 $ 9.73
===== ===== ===== ===== ======
TOTAL RETURN (e) ............................................... 3.96% 0.69% 1.63% (9.80%) (8.48%)(b)
RATIOS/SUPPLEMENTAL DATA
Net assets, end of period (in thousands) ....................... $3,436 $6,488 $8,127 $14,909 $13,040
Ratio to average net assets--
Expenses ..................................................... 3.49%(c) 2.66% 3.10% 1.87%(c) 0.16%(b)(c)
Net investment income ........................................ 2.80%(d) 2.37% 4.32% 7.85%(d) 7.59%(b)(d)
Portfolio turnover rate ........................................ 414% 301% 153% 216% 0%
- -------------
<FN>
* 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 3.78%, 2.64% and 2.58%(b) in 1995, 1992 and
1991, respectively.
(d) Ratio of net investment income to average net assets prior to expense
waiver and reimbursement from Manager was 2.51%, 7.08% and 5.17%(b) in
1995, 1992 and 1991, respectively.
(e) Calculated without the deduction of sales charges.
</FN>
</TABLE>
See Notes to Financial Statements
15
<PAGE>
NOTES TO FINANCIAL STATEMENTS
DECEMBER 31, 1995
- ---------------------
NOTE 1--SIGNIFICANT ACCOUNTING POLICIES
Astra (formerly Pilgrim) 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 (formerly Pilgrim) Short-Term
Multi-Market Income Fund I ("Fund I") and Astra (formerly Pilgrim) 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.
D. FEDERAL INCOME TAXES. The Funds intend to comply with the requirements of
the
16
<PAGE>
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. EQUALIZATION. The Funds follow the accounting practice known as
equalization by which a portion of the proceeds from sales and costs of
redemptions of capital shares equivalent to the amount of distributable net
investment income, on a per-share basis on the date of the transaction, is
credited or charged to undistributed net investment income. As a result,
undistributed net investment income per share is unaffected by sales or
redemptions of capital shares. This practice has been discontinued as of
December 31, 1995.
G. 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.
H. 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 year ended December 31, 1995, the cost of purchases and the proceeds
from sales of securities, excluding short-term notes, were $35,160,871 and
$31,835,219, respectively, for Fund I and $13,159,684 and $12,165,374,
respectively, for Fund II.
On December 31, 1995, 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 December 31, 1995 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:
Date of
Acquisition Cost
----------- ----------
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
December 31, 1995) .............. $6,180,969
==========
Fund I will not pay the costs of disposition of the above restricted securities
other than ordinary brokerage fees, if any.
17
<PAGE>
At December 31, 1995, the Funds had capital loss carryforwards for federal
income tax purposes as follows:
Capital Loss Expires
Carryforward December 31
------------ -----------
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
===========
NOTE 3--CAPITAL SHARES
At December 31, 1995, the authorized capital of the Funds consisted of an
unlimited number of shares of beneficial interest without par value.
NOTE 4--DISTRIBUTIONS TO SHAREHOLDERS
Distributions paid to shareholders during the year ended December 31, 1995,
differ from net investment income as determined for financial reporting purposes
principally as a result of the characterization of realized foreign currency
gains (losses) and the taxability of unrealized appreciation (depreciation) on
certain forward currency contracts.
NOTE 5--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 (formerly Pilgrim) 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 December 31, 1995,
Distributors had incurred $375,182 of distribution expenses in excess of
amounts currently reimbursable by the Fund.
During the year ended December 31, 1995, Fund I reimbursed Distributors
$37,853 for distribution expenses. Reimbursable expenses incurred by
Distributors during the year ended December 31, 1995, included $7,015 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% of
Fund II's daily net assets. During the year ended December 31, 1995,
Distributors earned $35,098 in daily compensation. At December 31, 1995,
Uncovered Distribution Charges (cumulative sales commissions and interest
fees reduced
18
<PAGE>
by cumulative daily compensation and contingent deferred sales charges
paid to the Distributors) amounted to $688,146.
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 year ended December 31, 1995, Distributors earned maintenance
fees of $11,699.
NOTE 6--INVESTMENT MANAGEMENT FEE AND OTHER TRANSACTION WITH AFFILIATES
Astra (formerly Pilgrim) Management Corporation (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 year ended December 31, 1995, the Manager
reimbursed $13,415 of expenses of Fund II pursuant to these expense limitation
provisions.
On November 20, 1992 the Manager entered into an Investment Advisory Agreement
(the "Agreement") with Warburg Investment Management International Ltd.
("Warburg"). Pursuant to the terms of the Agreement, Warburg provided certain
subadvisory services to the Manager including the responsibility for the
selection of portfolio securities for investment by the Funds and the execution
of such portfolio transactions. For its services the Manager paid Warburg a fee
calculated at the annual rate of .25% of the Fund's average daily net assets.
Warburg resigned as of June 30, 1995 and the Manager is currently providing such
services.
Certain officers and trustees of the Trust are also officers and/or directors of
the Manager and Distributors.
NOTE 7--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 year ended December 31, 1995, Distributors received contingent
deferred sales charges of $42,045.
19
<PAGE>
REPORT OF INDEPENDENT CERTIFIED PUBLIC ACCOUNTANTS
- ---------------------
To the Shareholders of Astra
Short-Term Multi-Market Income
Fund I and II and the Trustees of
Astra Global Investment Series
We have audited the accompanying statements of assets and liabilities,
including the portfolios of investments, of Astra (formerly Pilgrim) Global
Investment Series (comprising, respectively, Astra (formerly Pilgrim) Short-Term
Multi-Market Income Funds I and II), as of December 31, 1995, and the related
statements of operations for the year then ended, the statements of changes in
net assets for each of the two years in the period then ended and the financial
highlights for each of the periods presented. These financial statements and
financial highlights are the responsibility of the Trust's management. Our
responsibility is to express an opinion on these financial statements and
financial highlights based on our audits.
We conducted our audits in accordance with generally accepted auditing
standards. Those standards require that we plan and perform the audits to obtain
reasonable assurance about whether the financial statements and financial
highlights are free from material misstatement. An audit includes examining, on
a test basis, evidence supporting the amounts and disclosures in the financial
statements. Our procedures included confirmation of securities owned as of
December 31, 1995 by correspondence with the custodian. An audit also includes
assessing the accounting principles used and significant estimates made by
management, as well as evaluating the overall financial statement presentation.
We believe that our audits provide a reasonable basis for our opinion.
In our opinion, the financial statements and financial highlights referred
to above present fairly, in all material respects, the financial position of
each of the respective Funds constituting Astra Global Investment Series as of
December 31, 1995, the results of their operations for the year then ended, the
changes in their net assets for each of the two years in the period then ended
and the financial highlights for each of the periods presented, in conformity
with generally accepted accounting principles.
TAIT, WELLER & BAKER
Philadelphia, Pennsylvania
January 19, 1996
20
<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 III
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 II
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.
21
<PAGE>
- --------------------------------------------------------------------------------
750 B Street
Suite 2350
San Diego, CA 92101
- -------------------------------------
ASTRA SHORT-TERM MULT-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, MO 64141
1-800-441-7267
TRANSFER AGENT
Investors Fiduciary Trust Company
c/o DST Systems, Inc.
P.O. Box 419174
Kansas City, MO 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 296 2 AST 602041
<PAGE>
ASTRA
- --------------------------------------------
[LOGO]
ASTRA
SHORT-TERM
MULTI-MARKET
INCOME FUND I & II
- -------------------------------------------
ANNUAL REPORT
DECEMBER 31, 1995
[ARTWORK--EARTH]
<PAGE>
APPENDIX
(Pursuant to Rule 304 of Regulation S-T)
1. Page 5 contains a description in tabular form of a graph entitled "Comparison
of the Change in Value" which represents the comparison of the change in value
of a $10,000 investment in the Astra Short-Term Multi-Market Income Fund I
against the Salomon Brother's Currency Hedged 1-5 Year World Government Index
for the period commencing January 21, 1986 and ending December 31, 1995, which
graph is contained in the paper format of this Annual Report being sent to
Shareholders.
2. Page 6 contains a description in tabular form of a graph entitled "Comparison
of the Change in Value" which represents the comparison of the change in value
of a $10,000 investment in the Astra Short-Term Multi-Market Income Fund II
against the Salomon Brothers Currency Hedged 1-5 Year World Government Index and
the Lehman Brothers Mutual Fund Short World Multi-Market Index for the period
commencing October 1, 1991 and ending December 31, 1995, which graph is
contained in the paper format of the Annual Report being sent to Shareholders.
