All Seasons Global Fund, Inc.
Semi-Annual
Report
June 30, 1995
Diego J. Veitia
Chairman of the Board and
Chief Investment Officer
Robert A. Miller Ph.D.
Chairman of the Audit Committee
Adrian Day
Chairman of the External Review Committee
Jerome F. Miceli
Treasurer
Stephen A. Saker
Secretary
Directors and Officers
The Directors of the corporation are fiduciaries for the shareholders
and are governed by the law of the State of Maryland in this regard.
They establish and appoint the officers who conduct the daily business
of the corporation.
All Seasons Global Fund, Inc.
250 Park Avenue South, Suite 200
Winter Park, Florida 32789
Investment Advisor:
Veitia and Associates, Inc.
Shareholder Inquiries to:
Fund/Plan Services, Inc.
P.O. Box 874
2 Elm Street
Conshohocken, PA 19428
1(800)441-6580
Table of Contents
Letter to Shareholders 2
Equity Portfolio Highlight 4
Distribution of Equity Portfolio by Country 5
Asset Allocation 5
Statement of Assets and Liabilities 6
Statement of Operations 7
Statement of Changes in Net Assets 7
Portfolio Investments 8
All Seasons
Global
Fund, Inc.
Semi-Annual
Report
June 30, 1995
Diego J. Veitia
Chairman & Chief Investment Officer
July 31, 1995
Dear Fellow Shareholders:
The first six months of this year have brought good results to our
Fund. Here are some of the highlights:
bullet The market price of the Fund's shares rose from a February low of
$3.25 to $3.88 per share as of this writing_a 19% increase.
bullet As of this writing, the net asset value (NAV) of the Fund increased
from $4.70 to $5.13 per share_a 9% increase.
bullet The performance of the Fund has been achieved by applying a risk-
averse investment style_our risk-to-reward ratio continues to be one
of the best in the industry.
bullet Shareholders approved a name change that more closely reflects the
Fund's investment philosophy.
bullet A share buyback program has been successfully implemented.
With our investment strategy for 1995 firing on all cylinders, and the
Fund's attention to measures which seek to enhance shareholder value,
we are extremely pleased to report on the progress of the Fund. We
hope this will prove to be just the first step towards achieving our
goal of consistent returns and providing shareholder value in the
years ahead. We are confident that further progress will be made
towards improving performance and maximizing shareholder value.
On the investment side, we are very cautious about the U.S. market.
We continue to look at opportunities in other markets that reflect
better value from the perspective of earnings or assets. We believe
the U.S market has run ahead of itself based on political
expectations, corporate earnings, and the economic outlook. There are
other markets (in the Far East and Europe, for example) that are
trading at more reasonable multiples. These markets are where we
expect to find value and performance in the months ahead.
As of this writing, total equity exposure is only 46% and we have 43%
in fixed income. Please note that our government fixed income
exposure has a maturity of no more than two and a half years and that
the total average weighted maturity of the fixed income in the Fund is
approximately two years. For safety of principal and guaranteed
government income these short maturities are very important. On a
risk-adjusted basis, we believe that the performance of the Fund
stands out as one of the best in the industry today. The net asset
value has been increasing at the rate of over 1% per month this year,
with risk being limited by a diversification of the Fund's assets into
several different asset classes.
The Directors of the Fund have extended the share buyback program for
up to an additional 250,000 shares during the third quarter of this
year. Our original 250,000 share purchase was completed on June 30th.
We feel that the buyback program has worked extremely well and is
instrumental in maximizing shareholder value. Utilizing part of the
Fund's earnings-income stream to buy back shares in the future is part
of our strategy to reduce the market discount to the net asset value.
The discount has improved from its February level of 30% to 24% as of
this writing, a 20% improvement.
We are confident of the strategic direction that the Fund has taken
(both in its investment philosophy as well as in its operations), and
we will continue to work hard in the months and years ahead to achieve
the goals we have set for the All Seasons Global Fund.
As usual, we wish all of you a very profitable and healthy summer, and
we thank you for your continued support.
With kind and personal regards,
Sincerely yours,
Diego Veitia
Chairman & Chief Investment Officer
P.S. It is also interesting to note that twice this year Lipper
Analytical has recognized us as one of the best stock-price performers
in the Overseas Equity category which consists of 26 funds.
Equity Portfolio Highlight:
Shanghai Hai Xing Shipping Co. Ltd
Shanghai Hai Xing Shipping Co. Ltd. (SHS) has developed a dominant
presence in China's domestic oceanic shipping market, almost twice as
large as any other domestic shipping company in the PRC. Not only
does the company have a monopoly (due to market share) on shipping
coal and crude oil to eastern China, including the lucrative Shanghai market,
it is also involved in international cargo and passenger
transportation and has aggressive expansion plans.
SHS has a fleet of 180 vessels averaging 13 years in age, much younger
than the world's average of 17 years. The average age of this healthy
fleet will be further lowered to near 11 years with the extensive
shipbuilding program currently in place. The cargo vessels are built
to ship a large variety of products, including oil, coal, minerals,
grain, pig iron, sand, and building materials.
The company began operations well over 100 years ago as "China
Shipping Merchants," the first motor-based vessel shipping company in
China. Through time, SHS has developed a near monopoly that appears
to be well protected, as the PRC government will not likely finance a
rival shipping company because of the high set-up costs involved. The
company's market is a burgeoning one, with water transport growing at
over 9% per year in China, deregulation of the market allowing SHS to
negotiate prices more freely, and the global shipping market recovery
taking place. SHS should benefit directly from the economic growth
of China (GDP growth is expected to continue at 9%). Many consider
SHS an indirect play on the energy infrastructure developments in
China, as the company accounted for approximately 81% of total coal
and 95% of total crude oil shipped to the eastern parts of China in
1994.
The company has a healthy financial position, and stable earnings growth
is expected. With a net debt to equity ratio below 50%, it is well
below the shipping industry average. SHS is minimally exposed to
China's triangular debt problem, as utility authorities and blue-chip
industrial companies make up their customer base.
Based on the insatiable domestic demand for shipping in China, the
size and monopoly postition of SHS, its commitment to expansion, and
the growth prospects of both the shipping industry and China in
general, Shanghai Hai Xing Shipping Co. Ltd. appears to have limited
long-term downside risk and currently looks to be an attractive growth
investment.
Pie Chart - Shipping Volume
Intl Ohters 36.2%
Domestic Coal 29.4%
Intl Oil 9.6%
Domestic Oil 13.3%
Domestic Other 4.2%
Bar Chart - Distribution of Equity Portfolio By Country
June 30, 1995
Left column of chart shows percentages 0 - 40%
Horizontal line at bottom shows country names.
Bars show percentage for Fund versus percentage in
Morgan Stanley Capital International World Index.
Pie Chart - Asset Allocation
June 30, 1995
Cash & Cash Equivalents 23%
Equities 35%
US$ Bonds 42%
Statement of Assets and Liabilities
June 30, 1995
(Unaudited)
Assets
Cash 2,907,120
Investments in securities
at market value
(identified cost $39,199,166) 39,298,887
Accrued interest receivable 199,709
Dividends receivable 38,674
Receivable for investment securities sold 257,133
Prepaid insurance 22,670
Total assets 42,724,193
Liabilities
Accrued expenses 61,547
Net assets applicable to
outstanding capital stock 42,622,646
Represented by
Common stock - authorized 100,000 shares of $.01 par
value; issued 8,742,557 shares and outstanding,
8,492,557 shares 87,426
Additional paid-in capital 45,472,511
Treasury stock (971,105)
Accumulated distributions and net realized loss from
investments and foreign currency (3,366,319)
Undistributed net investment income 1,332,759
Unrealized appreciation of investments 107,874
Total -representing net assets applicable to outstanding capital stock
42,662,646
Net assets value per share of outstanding capital stock $5.02
Statement of Operations
For the Six Months Ended June 30, 1995
(Unaudited)
Income
Interest 1,005,911
Dividends 44,355
Total investment income 1,050,266
Expenses
Investment management fee 202,040
Custodian and transfer agent fees 80,824
Audit and legal fees 56,402
Directors' fees and expenses 21,323
Other 56,226
Total expenses 416,815
Investment income - net 633,451
Realized and Unrealized gains on investments and foreign currency
Net realized gain on investments and foreign currency
383,604
Net realized gain on closed short positions in securities
155,856
Net change in unrealized appreciation and depreciation of
investments and foreign currency 1,354,558
Net realized and unrealized gains from investments
and foreign currency 1,894,018
Increase in net assets resulting from operations 2,527,469
Statement of Changes in Net Assets
For the Six Months Ended June 30, 1995
(Unaudited)
Operations
Investment income - net 633,451
Net realized gain on investments and
foreign currency 383,604
Net realized gain on closed short positions
in securities 155,856
Net change in unrealized appreciation and depreciation
of investments and foreign currency 1,354,558
Increase in net assets resulting from operations 2,527,469
Other Changes
Purchase of treasury stock (971,105)
Net increase in net assets 1,556,364
Net assets at beginning of period 41,106,282
Net assets at end of period 42,662,646
Portfolio Investments
June 30, 1995
(Unaudited)
Number Market
Common Stocks 34.68% of Shares Value
(Percentages of each category
relate to total net assets)
Australia
Amcor Ltd. 41,000 302,261
Coca-Cola Amatil Ltd. 76,000 478,344
Western Mining Corp. Holdings Ltd. 83,000 455,391
Canada
Euro Nevada Mining Corp. 40,000 1,236,200
China
Shanghai Hai Xing Shipping Co. Ltd.2,400,000 494,400
Hong Kong
Cheung Kong Holdings Ltd. 100,000 494,992
National Mutual Asia Ltd. 800,000 501,600
New World Development Ltd. 200,000 665,590
Japan
Mitsubishi Corp. 44,000 500,060
Mitsubishi Estate Co. Ltd. 45,000 492,795
Mitsubishi Heavy Industries Ltd. 100,000 668,900
Suzuki Motor Co. Ltd. 50,000 556,603
Switzerland
BBC Brown Boveri AG 620 640,451
Ciba Geigy AG 1,100 809,981
Nestle SA 620 651,265
United Kingdom
HSBC Holdings PLC 80,000 1,026,171
Johnson Matthey PLC 30,200 275,811
United States
Abbot Laboratories 15,000 607,500
Atlantic Richfield Co. 4,300 471,925
Church & Dwight Co. 30,000 622,500
DNA Plant Technology Corp. 401,400 790,276
Eastman Kodak Co. 10,000 606,250
Johnson & Johnson 10,000 676,250
J.P. Morgan & Company 9,000 631,125
Phillips Petroleum Co. 14,000 467,250
Total common stocks 15,123,893
(cost $15,453,643)
Number of Market
Options 0.01% Contracts Value
Johnson & Johnson Put 65 Strike
Expires 7/95 100 3,750
(cost $13,945)
Bonds 41.92%
Name of Issuer Principal Market
U.S. Corporate Bonds Amount Value
Toyota 9.75% due 3/9/98 2,000,000 2,180,000
U.S. Government Obligations
U.S. T-Note 6% 11/30/97 7,000,000 7,086,380
U.S. T-Note 6.875% 10/31/96 9,000,000 9,014,040
Total U.S. government obligations 18,280,420
U.S. T-Bill 5.995% 10/19/95 6,000,000 5,890,825
Total Investments 39,298,887
