<PAGE>
[ ASTRA LOGO ]
ASTRA SHORT-TERM MULTI-MARKET INCOME FUND I & II SEMI-ANNUAL REPORT
August 19, 1997
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, 1997, provided total returns of
- -2.47% and -4.92% respectively*. During the same period, U.S. interest rates, as
measured by the 3-year U.S. Treasury, increased 20 basis points from 6.01% to
6.21%, 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 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.
Global economic performance exceeded most expectations in the first half of
1997. There has been a widespread acceleration in indicators of global economic
activity, although inflation pressures remain tame. Economic activity is
expected to exceed expectations once again in the second half of 1997 and,
across much of the globe, into 1998. In fact, most Wall Street estimates for
global growth have, on average, been revised up, while those for inflation have
been revised down. This surprising strength in global growth in the second half
of the year is expected to be most notable in the United States, where it is
expected to average close to 4%. In response, however, most central banks are
expected to push interest rates higher, as they seek to restrain too vigorous
demand growth or come to the conclusion that the need for extreme stimulus is
over.
Financial markets do not appear to be well adjusted to these expected
developments. Bond markets have rallied recently on the belief that a sustained
period of softer growth is around the corner. They are likely to be disappointed
in the second half of 1997, as growth exceeds expectations.
Against the backdrop described above, the Funds anticipate maintaining a shorter
duration and overweighting 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 continue to gain ground on both the
yen and DM over the course of 1997.
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. Sales charges or commissions are not reflected in
the total returns. Total return for the six months ending June 30, 1997 was
-5.38% and -8.92% for Fund I and Fund II, respectively, after deduction of
applicable sales charges (Fund I has an initial sales charge of 3% and Fund II
has a contingent deferred sales charge of 4%) 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, 1997 (UNAUDITED)
- ------------------------------
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT* VALUE
--------- BONDS AND NOTES: 90.9% -----
<S> <C> <C> <C>
AUSTRALIA: 6.3%
425,000 Australian Government Bond, 7.00%, Due 8/15/98.............. $ 327,723
-----------
CANADA: 7.7%
550,000 Canadian Government Bond, 6.25%, Due 2/1/98................. 404,544
-----------
DENMARK: 2.5%
850,000 Denmark Government Bond, 7.00%, Due 8/15/97................. 128,409
-----------
ITALY: 12.3%
1,035,000 Italian Government Bond, 10.50%, Due 11/1/98................ 639,874
-----------
SPAIN: 11.7%
90,000,000 Spanish Government Bond, 7.30%, Due 7/30/97................. 611,626
-----------
UNITED STATES: 50.4%
2,560,000 U.S. Treasury Note, 8.25%, Due 7/15/98...................... 2,621,414
-----------
Total Bonds and Notes (Cost $4,914,648)..................... 4,733,590
-----------
SHORT-TERM INVESTMENTS: 6.0%
NEW ZEALAND: 6.0%
458,000 New Zealand Treasury Bill, Due 9/17/97...................... 307,058
-----------
Total Short-Term Investments (Cost $313,110)........... 307,058
-----------
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
-----------
</TABLE>
<TABLE>
<CAPTION>
TOTAL INVESTMENTS IN SECURITIES
<S> <C> <C> <C>
(COST $11,408,727)** (NOTES 1A AND 2)..................... 96.9% 5,040,650
CASH AND OTHER ASSETS IN EXCESS OF LIABILITIES.............. 3.1% 163,838
------ -----------
TOTAL NET ASSETS.......................................... 100.0% $ 5,204,488
===== ===========
</TABLE>
(R) Restricted securities (see Note 2).
(a) Non-income producing security.
- ------------------
<TABLE>
<CAPTION>
<S> <C>
* Stated in local currencies unless otherwise noted.
** Cost for Federal income tax purposes is $11,408,727 and net unrealized
depreciation consists of:
Gross Unrealized Appreciation....................................... $ 101,230
Gross Unrealized Depreciation....................................... (6,473,918)
-----------
Net Unrealized Depreciation.................................... $(6,372,688)
===========
</TABLE>
See Notes to Financial Statements
- ------
2
<PAGE>
ASTRA SHORT-TERM MULTI-MARKET INCOME FUND II
PORTFOLIO OF INVESTMENTS AS OF JUNE 30, 1997 (UNAUDITED)
--------------------------------
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT* VALUE
--------- BONDS AND NOTES: 82.9% -----
<S> <C> <C> <C>
AUSTRALIA: 7.8%
96,000 Australian Government Bond, 7.00%, Due 8/15/98.............. $ 74,027
----------
CANADA: 4.7%
60,000 Canadian Government Bond, 6.25%, Due 2/1/98................. 44,132
----------
DENMARK: 3.2%
200,000 Denmark Government Bond, 7.00%, Due 8/15/97................. 30,214
----------
ITALY: 13.1%
200,000,000 Italian Government Bond, 10.50%, Due 11/1/98................ 123,647
----------
SPAIN: 15.1%
21,000,000 Spanish Government Bond, 7.30%, Due 7/30/97................. 142,713
----------
UNITED STATES: 39.0%
360,000 U.S. Treasury Note, 8.25%, Due 7/15/98...................... 368,636
----------
Total Bonds and Notes (Cost $826,671).................. 783,369
----------
SHORT-TERM INVESTMENTS: 6.5%
NEW ZEALAND: 6.5%
92,000 New Zealand Treasury Bill, Due 9/17/97...................... 61,680
----------
Total Short-Term Investments (Cost $62,895)............ 61,680
----------
</TABLE>
<TABLE>
<S> <C> <C> <C>
TOTAL INVESTMENTS IN SECURITIES
(COST $889,566)** (NOTES 1A AND 2)........................ 89.4% 845,049
CASH AND OTHER ASSETS IN EXCESS OF LIABILITIES.............. 10.6% 99,693
------ -----------
TOTAL NET ASSETS.......................................... 100.0% $ 944,742
===== ===========
</TABLE>
- ------------------
<TABLE>
<CAPTION>
<S> <C>
* Stated in local currencies unless otherwise noted.
** Cost for Federal income tax purposes is $889,566 and net unrealized
appreciation consists of:
Gross Unrealized Appreciation....................................... $ 30,984
Gross Unrealized Depreciation....................................... (76,424)
-----------
Net Unrealized Depreciation................................... $ (45,440)
===========
</TABLE>
See Notes to Financial Statements
- ------
3
<PAGE>
ASTRA SHORT-TERM MULTI-MARKET INCOME FUNDS
STATEMENTS OF ASSETS AND LIABILITIES
JUNE 30, 1997
- ------------------------------
<TABLE>
<CAPTION>
FUND I FUND II
----------- ----------
<S> <C> <C>
ASSETS:
Investments in securities, at value (identified cost
$11,408,727 and $889,566, respectively) (Notes 2A
and 3)................................................. $ 5,040,650 $ 845,049
Cash...................................................... 8,147 75,733
Receivables:
Interest............................................... 180,859 33,467
Reclaim................................................ -- 1,594
Prepaid expenses.......................................... 3,006 --
----------- ----------
Total Assets......................................... 5,232,662 955,843
----------- ----------
LIABILITIES:
Payable for capital stock redeemed........................ 9,356 --
Accrued expenses.......................................... 18,818 11,101
----------- ----------
Total Liabilities.................................... 28,174 11,101
----------- ----------
NET ASSETS.................................................. $ 5,204,488 $ 944,742
=========== ==========
COMPUTATION OF OFFERING PRICE:
Net asset value and redemption price per share ($5,204,488 divided by 794,905
shares and $944,742 divided by 136,176
shares, respectively) (Note 7)............................ $ 6.55 $ 6.94
=========== ==========
Offering price per share ($6.55 divided by 97% and $6.94
divided by 100%).......................................... $ 6.75* $ 6.94
=========== ==========
</TABLE>
<TABLE>
<CAPTION>
- ------------------
* On investments of $100,000 or more the offering price is reduced.
At June 30, 1997 the components of net assets were as follows:
<S> <C> <C>
Paid-in capital................................... $93,277,204 $2,490,546
Accumulated net realized losses on investments.... (81,739,338) (1,508,340)
Accumulated net realized gains from forward
currency contracts and foreign exchange
transactions................................... 40,755 8,966
Accumulated net investment deficit................ (1,445) (990)
Net unrealized depreciation of investments and
foreign currency transactions.................. (6,372,688) (45,440)
----------- ----------
$ 5,204,488 $ 944,742
=========== ==========
</TABLE>
See Notes to Financial Statements
- ------
4
<PAGE>
ASTRA SHORT-TERM MULTI-MARKET INCOME FUNDS
STATEMENTS OF OPERATIONS
FOR THE SIX MONTHS ENDED JUNE 30, 1997 (UNAUDITED)
- ------------------------------
<TABLE>
<CAPTION>
FUND I FUND II
--------- --------
<S> <C> <C>
INVESTMENT INCOME:
INCOME:
Interest.................................................. $ 195,486 $ 37,550
--------- --------
EXPENSES:
Transfer agent fees....................................... 24,889 6,263
Investment management fees (Note 5)....................... 18,204 3,501
Recordkeeping fees........................................ 15,488 3,834
Professional fees......................................... 8,889 5,488
Distribution expenses (Note 4)............................ 8,738 5,602
Registration and filing fees.............................. 8,330 6,452
Reports to shareholders................................... 7,785 1,686
Insurance expense......................................... 5,863 1,303
Custody fees.............................................. 3,078 973
Miscellaneous............................................. 1,741 1,156
Trustees' fees............................................ 1,590 397
--------- --------
Total expenses....................................... 104,595 36,655
--------- --------
Net investment income................................ 90,891 895
--------- --------
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS
AND FOREIGN CURRENCY TRANSACTIONS:
Net realized gain (loss) on investments................... (694) 1,124
Net realized gain from forward currency contracts and
foreign exchange transactions.......................... 40,755 8,967
--------- --------
Net realized gain......................................... 40,061 10,091
Net change in unrealized depreciation of investments,
forward currency contracts and foreign currency
transactions........................................... (300,763) (74,082)
--------- --------
Net realized and unrealized loss on investments and
foreign currency transactions.......................... (260,702) (63,991)
--------- --------
Net decrease in net assets resulting from
operations...................................... $(169,811) $(63,096)
========= ========
</TABLE>
See Notes to Financial Statements
- ------
5
<PAGE>
ASTRA SHORT-TERM MULTI-MARKET INCOME FUND I
STATEMENT OF CHANGES IN NET ASSETS
- ------------------------------
<TABLE>
<CAPTION>
SIX MONTHS ENDED YEAR ENDED
JUNE 30, 1997 DECEMBER 31,
(UNAUDITED) 1996
---------------- ------------
<S> <C> <C>
OPERATIONS:
Net investment income..................................... $ 90,891 $ 335,582
Net realized gain (loss) on investments................... (694) 110,373
Net realized gain (loss) from forward currency contracts
and foreign exchange transactions...................... 40,755 (30,876)
Net change in unrealized depreciation of investments,
forward currency contracts and foreign currency
transactions........................................... (300,763) (40,385)
---------- -----------
Net increase (decrease) in net assets resulting from
operations............................................. (169,811) 374,694
DISTRIBUTION TO SHAREHOLDERS:
Distributions from net investment income ($0.103 and $0.22
per share, respectively)............................... (90,891) (286,463)
Distributions in excess of net investment income
($0.002 per share)..................................... (1,445) --
Distributions from paid-in capital ($0.04 per share)...... -- (49,100)
CAPITAL SHARE TRANSACTIONS:
Net decrease in net assets from capital share
transactions (a)....................................... (1,327,107) (3,846,537)
---------- -----------
Total decrease in net assets.............................. (1,589,254) (3,807,406)
Net assets at the beginning of the period................... 6,793,742 10,601,148
---------- -----------
NET ASSETS at the end of the period (including accumulated
net investment deficit of $1,445 and $0, respectively..... $5,204,488 $ 6,793,742
========== ===========
</TABLE>
- ------------------
(A) A SUMMARY OF CAPITAL SHARE TRANSACTIONS IS AS FOLLOWS:
<TABLE>
<CAPTION>
SIX MONTHS ENDED YEAR ENDED
JUNE 30, 1997 (UNAUDITED) DECEMBER 31, 1996
------------------------- -------------------------
SHARES VALUE SHARES VALUE
-------- ----------- -------- -----------
<S> <C> <C> <C> <C>
Shares sold................................ 766 $ 5,079 4,443 $ 29,837
Shares issued in reinvestment of
distributions to shareholders............ 8,303 55,053 26,064 175,227
-------- ----------- -------- -----------
9,069 60,132 30,507 205,064
Shares redeemed............................ (209,915) (1,387,239) (602,323) (4,051,601)
-------- ----------- -------- -----------
Net decrease.......................... (200,846) $(1,327,107) (571,816) $(3,846,537)
======== =========== ======== ===========
</TABLE>
See Notes to Financial Statements
- ------
6
<PAGE>
ASTRA SHORT-TERM MULTI-MARKET INCOME FUND II
STATEMENT OF CHANGES IN NET ASSETS
- ------------------------------
<TABLE>
<CAPTION>
SIX MONTHS ENDED YEAR ENDED
JUNE 30, 1997 DECEMBER 31,
(UNAUDITED) 1996
---------------- ------------
<S> <C> <C>
OPERATIONS:
Net investment income..................................... $ 895 $ 32,547
Net realized gain on investments.......................... 1,124 19,283
Net realized gain (loss) from forward currency contracts
and foreign exchange transactions...................... 8,967 (15,421)
Net change in unrealized depreciation of investments,
forward currency contracts and foreign currency
transactions........................................... (74,082) (15,490)
---------- ----------
Net increase (decrease) in net assets resulting from
operations............................................. (63,096) 20,919
DISTRIBUTION TO SHAREHOLDERS:
Distributions from net investment income ($0.004 per
share)................................................. (895) --
Distributions in excess of investment income ($0.007 per
share)................................................. (990) --
Distributions from paid-in capital ($0.19 per share)...... -- (65,377)
CAPITAL SHARE TRANSACTIONS:
Net decrease in net assets from capital share
transactions (a)....................................... (377,692) (2,003,910)
---------- ----------
Total decrease in net assets........................... (442,673) (2,048,368)
Net assets at the beginning of the period................... 1,387,415 3,435,783
---------- ----------
NET ASSETS at the end of the period (including accumulated
net investment deficit of $990 and $0, respectively)...... $ 944,742 $1,387,415
========== ==========
</TABLE>
- ------------------
(A) A SUMMARY OF CAPITAL SHARE TRANSACTIONS IS AS FOLLOWS:
<TABLE>
<CAPTION>
SIX MONTHS ENDED YEAR ENDED
JUNE 30, 1997 (UNAUDITED) DECEMBER 31, 1996
-------------------------- -------------------------
SHARES VALUE SHARES VALUE
--------- ----------- -------- -----------
<S> <C> <C> <C> <C>
Shares sold................................... 1 $ 7 2,562 $ 18,595
Shares issued in reinvestment of distributions
to shareholders............................. 149 1,065 5,483 39,889
------- --------- -------- -----------
150 1,072 8,045 58,484
Shares redeemed............................... (53,773) (378,764) (284,227) (2,062,394)
------- --------- -------- -----------
Net decrease............................. (53,623) $(377,692) (276,182) $(2,003,910)
======= ========= ======== ===========
</TABLE>
See Notes to Financial Statements
- ------
7
<PAGE>
ASTRA SHORT-TERM MULTI-MARKET INCOME FUND I
FINANCIAL HIGHLIGHTS
FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD
- ------------------------------
<TABLE>
<CAPTION>
SIX MONTHS ENDED YEAR ENDED DECEMBER 31,
JUNE 30, 1997 -------------------------------------------------------
(UNAUDITED) 1996 1995 1994 1993 1992
---------------- ---- ---- ---- ---- ----
<S> <C> <C> <C> <C> <C> <C>
PER SHARE OPERATING PERFORMANCE
Net asset value, beginning of
period....................... $ 6.82 $ 6.76 $ 6.73 $ 6.89 $ 7.27 $ 9.31
------ ------ ------- ------- ------- -------
Income (loss) from investment
operations--
Net investment income........ 0.103 0.22 0.25 0.08 0.45 0.86
Net realized and
unrealized gain (loss) on
investments and foreign
currency transactions...... (0.268) 0.10 0.13 0.12 (0.35) (2.16)
------ ------ ------- ------- ------- -------
Total from investment
operations............... (0.165) 0.32 0.38 0.20 0.10 (1.30)
------ ------ ------- ------- ------- -------
Less distributions--
Distributions from net
investment income.......... 0.103 0.22 0.25 0.08 -- 0.74
Distributions in excess of
net investment income...... 0.002 -- -- -- -- --
Distributions from paid-in
capital.................... -- 0.04 0.10 0.28 0.48 --
------ ------ ------- ------- ------- -------
Total distributions........ 0.105 0.26 0.35 0.36 0.48 0.74
------ ------ ------- ------- ------- -------
Net asset value, end of
period....................... $ 6.55 $ 6.82 $ 6.76 $ 6.73 $ 6.89 $ 7.27
====== ====== ======= ======= ======= =======
TOTAL RETURN (a)............... (2.47%) 4.94% 5.77% 2.96% 1.54% (15.08%)
RATIOS/SUPPLEMENTAL DATA
Net assets, end of period (in
thousands)................... $5,204 $6,794 $10,601 $15,566 $27,630 $59,283
Ratio to average net assets--
Expenses..................... 3.59%(d) 2.80%(b) 2.45% 1.68% 1.85% 1.31%
Net investment income........ 3.12%(d) 3.99%(c) 3.98% 3.42% 6.41% 9.46%
Portfolio turnover rate........ 62% 87% 382% 337% 151% 167%
</TABLE>
- ------------------
(a) Calculated without the deduction of sales charges.
(b) Ratio of expenses to average net assets prior to expense waiver and
reimbursement from Manager was 3.16%.
(c) Ratio of net investment income to average net assets prior to expense waiver
and reimbursement from Manager was 3.63%.
(d) Annualized.
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>
SIX MONTHS ENDED YEAR ENDED DECEMBER 31,
JUNE 30, 1997 ---------------------------------------------------------
(UNAUDITED) 1996 1995 1994 1993* 1992
---------------- ---- ---- ---- ----- ----
<S> <C> <C> <C> <C> <C> <C>
PER SHARE OPERATING PERFORMANCE
Net asset value, beginning of
period......................... $ 7.31 $ 7.37 $ 7.39 $ 7.71 $ 8.10 $ 9.73
------ ------ ------ ------ ------ -------
Income (loss) from investment
operations--
Net investment income.......... 0.004 -- 0.21 0.04 0.34 0.73
Net realized and unrealized
gain (loss) on
investments and foreign
currency transactions........ (0.363) 0.13 0.08 0.01 (0.21) (1.61)
------ ------ ------ ------ ------ -------
Total from investment
operations................. (0.359) 0.13 0.29 0.05 0.13 (0.88)
------ ------ ------ ------ ------ -------
Less distributions--
Distributions from net
investment income............ 0.004 -- 0.21 0.04 -- 0.75
Distributions in excess of net
investment income............ 0.007 -- -- -- -- --
Distributions from paid-in
capital...................... -- 0.19 0.10 0.33 0.52 --
------ ------ ------ ------ ------ -------
Total distributions.......... 0.011 0.19 0.31 0.37 0.52 0.75
------ ------ ------ ------ ------ -------
Net asset value, end of period... $ 6.94 $ 7.31 $ 7.37 $ 7.39 $ 7.71 $ 8.10
====== ====== ====== ====== ====== =======
TOTAL RETURN (a)................. (4.91%) 1.81% 3.96% 0.69% 1.63% (9.80%)
RATIOS/SUPPLEMENTAL DATA
Net assets, end of period (in
thousands)..................... $ 945 $1,387 $3,436 $6,488 $8,127 $14,909
Ratio to average net assets--
Expenses....................... 6.54%(d) 5.41%(b) 3.49%(b) 2.66% 3.10% 1.87%(b)
Net investment income.......... 0.16%(d) 1.45%(c) 2.80%(c) 2.37% 4.32% 7.85%(c)
Portfolio turnover rate.......... 66% 119% 414% 301% 153% 216%
</TABLE>
- ------------------
* Calculation based on average shares outstanding.
(a) Calculated without the deduction of sales charges.
(b) Ratio of expenses to average net assets prior to expense waiver and
reimbursement from Manager was 6.03%, 3.78% and 2.64% in 1996, 1995 and
1992, respectively.
(c) Ratio of net investment income to average net assets prior to expense waiver
and reimbursement from Manager was 0.83%, 2.51% and 7.08% in 1996, 1995 and
1992, respectively.
(d) Annualized.
See Notes to Financial Statements
- ------
9
<PAGE>
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 1997
- ------------------------------
NOTE 1 -- ORGANIZATION
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. There can be no assurance that
the Fund's investment objectives will be achieved.
NOTE 2 -- SIGNIFICANT ACCOUNTING POLICIES
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
- ------
10
<PAGE>
to perform in accordance with the terms of the contract.
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.
Distributions paid to shareholders during the six months ended June 30,
1997, differ from net investment income as determined for financial
reporting purposes principally as a result of the characterization of
realized foreign currency gains (losses).
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 are recorded on the ex-dividend date. The
Funds intend to declare and pay dividends monthly.
F. 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 3 -- INVESTMENTS
For the six months ended June 30, 1997, the cost of purchases and the proceeds
from sales of securities, excluding short-term notes, were $3,531,879 and
$4,593,192, respectively, for Fund I and $747,077 and $1,126,989, respectively,
for Fund II.
On June 30, 1997, Fund I held certain restricted securities (i.e., securities
which may not be publicly sold without registration under the Securities Act of
1933 (the '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, 1997, 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, 1997)...... $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.
At December 31, 1996, 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............... $30,519,253 1997
16,993,222 1998
7,987,637 2000
10,290,576 2001
39,930 2003
-----------
$65,830,618
===========
Fund II.............. $ 272,874 2000
1,175,535 2001
24,582 2002
-----------
$ 1,472,991
===========
</TABLE>
- ------
11
<PAGE>
NOTE 4 -- CAPITAL SHARES
At June 30, 1997, the authorized capital of the Funds consisted of an unlimited
number of shares of beneficial interest without par value.
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 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,
1997, Distributors had incurred $145,563 of distribution expenses in excess
of amounts currently reimbursable by the Fund.
During the six months ended June 30, 1997, Fund I reimbursed Distributors
$8,738 for distribution expenses. Reimbursable expenses incurred by
Distributors during the six months ended June 30, 1997, included $894 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, 1997,
Distributors earned $4,202 in daily compensation. At June 30, 1997,
Uncovered Distribution Charges (cumulative sales commissions and interest
fees reduced by cumulative daily compensation and contingent deferred sales
charges paid to the Distributors) amounted to $765,361.
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, 1997, Distributors earned maintenance fees of
$1,401.
NOTE 6 -- INVESTMENT MANAGEMENT FEE AND OTHER TRANSACTIONS 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
- ------
12
<PAGE>
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. During the six months ended
June 30, 1997, there were no reimbursements.
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 six months ended June 30, 1997, Distributors received contingent
deferred sales charges of $367.
- ------
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>
- -------------------------------------------------------------------------------
11400 West Olympic Blvd.
Suite 200
Los Angeles, CA 90064
- -------------------------------------------------------------------------------
ASTRA SHORT-TERM MULTI-MARKET
INCOME FUND I & II
Investment Manager
Astra Management Corp.
11400 West Olympic Blvd.
Suite 200
Los Angeles, CA 90064
1-310-445-8850
Principal Underwriter
Astra Fund Distributors Corp.
11400 West Olympic Blvd.
Suite 200
Los Angeles, CA 90064
1-310-445-8850
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 897 1.3 AST 707012
[ ASTRA LOGO ]
- -------------------------------------------------------------------------------
ASTRA
SHORT-TERM
MULTI-MARKET
INCOME FUND I & II
- -------------------------------------------------------------------------------
SEMI-ANNUAL REPORT
JUNE 30, 1997
[ PICTURE OF THE PLANET EARTH ]
<PAGE>
