<PAGE>
March 31, 1997
Dear Shareholders:
The Yamaichi Global Fund rose by 10.54% in terms of net asset value
during 1996. For the same period, the Morgan Stanley Capital International
(MSCI) World Free Index, our primary basis for comparison, increased by 13.51%
with net dividends reinvested. The average global fund, as compiled by Lipper
Analytical Services, gained 16.72%.
The rise in equity prices was driven by rising global liquidity,
improving corporate profits and continued low inflation, which increases the
attractiveness of financial assets. The performance of the MSCI World Free Index
was anchored by the 23.24% jump in the U.S. benchmark which accounts for
approximately 45% of the MSCI World Free Index. The rise to record highs in the
U.S. market was led by oil & gas drilling, semiconductor, software, banking, and
brokerage stocks. Despite their strong annual returns many technology stocks
experienced sharp corrections around mid-year. The overall market corrected by a
little over 6% during this time largely due to fears that the Federal Reserve
was about to raise interest rates.
European and Asian markets generally followed suit, with the notable
exception of Japan. The MSCI Japan Index declined 15.5% in response a sluggish
economy and a lingering problem loan situation. European stocks rose around 20%
on average in response to lower interest rates and low inflation. However, gains
were only about 12% in the UK due to political concerns, a small interest rate
rise and the impact of a stronger currency. Hong Kong led the Pacific Basin
markets higher helped by strength in the real estate sector and relaxed concerns
about the transition to Chinese rule in July of this year. Singapore shares
declined due to weakness in the electronics sector.
We remain fairly constructive on the outlook for global equities for
1997. Global liquidity conditions, as measured by central banks' policies, are
still favorable; economic growth remains positive and inflation remains subdued.
We feel that any further tightening by the US Federal Reserve will be limited
based on the fact that the real interest rate (Fed Funds minus the CPI%) is
already restrictive. Monetary conditions elsewhere should stay relaxed in order
to deal with the persistent financial sector problems in Japan and high
unemployment in Europe. Global competition and technological advancements will
continue to keep inflation at bay.
On behalf of the management and staff of Yamaichi Global Fund, I wish
to thank all of you for your ongoing interest and support.
Sincerely,
Edward S. Burke
President
<PAGE>
YAMAICHI GLOBAL FUND
(A Portfolio of Yamaichi Funds, Inc.)
PORTFOLIO OF INVESTMENTS
INVESTMENT BY COUNTRY MARKET
SHARES VALUE
Argentina (1.5%)
Siderca SA A shares (Steel) 4,000 $ 11,522
Siderca 1 vote (Steel) 100,000 182,534
--------
194,056
--------
Austria (1.7%)
Voest Alpine Eisenbabasysteme AG 2,000 227,015
Canada (6.2%)
Agrium Inc. (Chemicals)* 4,875 66,578
Alcan Aluminum Ltd (Metals) 4,900 164,763
Canadian Imperial Bank of Commerce (Banking/Financial 12,000 529,779
Dundee Bancorp Inc (Banking/Financial Services)* 3,000 55,322
Westaim Corp (Industrial/Manufacturing)* 4,867 14,396
---------
830,838
---------
Denmark (1.5%)
GN Store Nord (Communications) 2,000 195,344
France (1.2%)
Bouygeues (Construction) 1,538 159,477
Germany (2.8%)
Munchener Ruckvers Part Pd Regd (Insurance) 150 374,805
Hong Kong (3.0%)
Cons Elec Pwr Asia Spon ADR 144A (Utility) 3,100 $ 72,757
Henderson Land Development (Construction) 10,000 100,847
HSBC Holdings ORD (Banking/Financial Services) 10,800 231,094
---------
404,698
---------
Italy (2.0%)
Telecom Italia SPA (Communications) 100,000 259,745
Japan (12.4%)
DDI Corporation (Communications) 10 66,143
Hitachi Ltd (Electronics/Computers) 20,000 186,512
Makino Milling Machine (Industrial/Manufacturing) 20,000 127,623
Matsushita Electric Ind (Electronics/Computers) 11,000 179,518
Murata Mfg (Industrial/Manufacturing) 700 23,271
Nissan Motor Co (Automotive) 28,000 162,473
Nomura Securities Co Ltd (Banking/Financial Services) 8,000 120,197
Oki Electric Ind (Electronics/Computers) 25,000 137,726
Rohm Co (Electronics/Computers) 2,000 131,249
Secom Co (other) 3,000 181,591
Seven-Eleven Japan (Merchandising) 840 49,177
Sumitomo Electric (Industrial/Manufacturing) 20,000 279,769
---------
---------
1,645,249
---------
Malaysia (.9%)
Commerce Asset Holdings
Berhad (Banking/Financial Services) 16,000 120,372
Netherlands (4.9%)
ING Groep NV (Banking/Financial Services) 5,000 179,909
Internatio-Muller (Conglomerate) 17,000 426,807
Int'l Nedland GP NV WTS
3/15/0 (Banking/Financial Services)* 6,111 43,836
--------------
650,552
--------------
Singapore (1.5%)
Keppel Corp (Transportation) 15,000 116,844
Singapore Land (Other) 15,000 83,077
--------------
199,921
--------------
South Africa (1.7%)
Liblife Strategic Investments (Insurance) 75,000 224,431
Switzerland (3.3%)
Baloise Holdings Regd (Insurance) 100 200,971
Novartis AG Regd (Healthcare/Pharmaceuticals)* 213 243,951
--------------
444,922
--------------
Thailand (.1%)
Dhana Siam Finance Fgn Regd PCL (Banking/Financial Services) 8,000 19,028
United Kingdom (3.9%)
British Airways Ord (Transportation) 15,000 155,849
National Power Ord (Utility) 20,000 167,199
Powergen Ord (Utility) 20,000 195,979
--------------
519,027
--------------
United States (54.5%)
Aetna Inc (Banking/Financial Services) 5,000 400,000
Allegiance Corp (Healthcare/Pharmaceuticals) 5,000 138,125
America West Airlines INC CL B (Transportation)* 5,000 79,375
American Buildings Company (Construction)* 5,000 119,375
AT&T Corp (Communications) 5,000 217,500
Bankamerica Corp (Banking/Financial Services) 3,900 389,025
Belco Oil & Gas Corp (Chemicals)* 5,000 136,875
Ben Franklin Retail Stores Inc (Merchandising)* 9 2
Bindley Western Inds (Healthcare/Pharmaceuticals) 10,000 193,750
Butler Manufacturing Co (Construction) 5,000 202,500
Cabletron Systems Inc (Industrial/Manufacturing)* 4,000 133,000
Centura Banks Inc (Banking/Financial Services) 5,000 223,125
Cia Anonima Tel De Ven Spn ADR (Communications)* 3,000 84,375
Computer Assoc Intl Inc (Electronics/Computers) 2,000 99,500
Conseco Inc (Banking/Financial Services) 2,500 159,375
Cox Radio Inc CL A (Communication)* 2,000 35,000
DSP Communication Inc (Communications)* 6,000 116,250
22
<PAGE>
YAMAICHI GLOBAL FUND
(A Portfolio of Yamaichi Funds, Inc.)
PORTFOLIO OF INVESTMENTS
Federal Express Corp (Transportation)* 5,000 222,500
Ford Motor Co. (Automotive) 2,500 79,688
Fresenius Natl Medical Care PF 2,500 325
(Healthcare/Pharmaceuticals)*
Geotek Ind Inc (Communications)* 22,500 160,313
GT Global Eastern Europe FD BEN
(Banking/Financial Services) 15,000 193,125
GTE Corp (Communications) 4,000 182,000
International Business Machine (Electronics/Computers) 2,000 302,000
Lehman Brothers Hldgs Inc (Banking/Financial Services) 5,000 156,875
Lockheed Martin Corp (Electronics/Computers) 2,000 183,000
Lucent Technologies Inc (Electronics/Computers) 4,000 185,000
Mercantile Bancorporation (Banking/Financial Services) 5,000 256,875
North Amern Mtg Co (Banking/Financial Services) 5,000 98,750
Nynex Corp (Communications) 3,800 182,875
Pepsico Inc (Beverages) 2,500 73,125
Philip Morris Cos Inc (Merchandising) 2,000 225,250
23
<PAGE>
YAMAICHI GLOBAL FUND
(A Portfolio of Yamaichi Funds, Inc.)
PORTFOLIO OF INVESTMENTS
Philips NV ADR (Industrial/Manufacturing) 7,500 300,000
Pixtech Inc (Electronics/Computers)* 15,000 58,125
Schroder Asian Growth Fund Inc (Healthcare/Pharmaceuticals) 10,000 118,750
Sierra Health Services (Healthcare/Pharmaceuticals)* 15,000 369,375
Sun Microsystems Inc (Electronics/Computers)* 10,000 256,875
Tandem Computers Inc (Electronics/Computers)* 10,000 137,500
Telephone & Data Systems Inc (Communications) 5,000 181,250
Teradyne Inc (Electronics/Computer)* 5,000 121,875
TTI Team Telecom (Electronics/Computers) 10,000 62,500
US Robotics (Industrial/Manufacturing)* 4,000 288,000
Versatility Inc (Electronics/Computers)* 700 10,500
Vishay Intertechnology (Industrial/Manufacturing)* 5,000 116,874
--------------
7,250,477
--------------
Total Investments (cost $11,388,518) (103.1%) $13,719,957
--------------
24
<PAGE>
YAMAICHI GLOBAL FUND
(A Portfolio of Yamaichi Funds, Inc.)
PORTFOLIO OF INVESTMENTS
--------------
Other assets and liabilities (-3.1%) (418,541)
--------------
Net assets $13,301,416
--------------
*Non income-producing security
<PAGE>
YAMAICHI GLOBAL FUND
(A Portfolio of Yamaichi Funds, Inc.)
STATEMENT OF ASSETS AND LIABILITIES
December 31, 1996
ASSETS
Investments at value (cost $11,388,518, Note 2A) $ 13,719,957
Foreign currencies 1,045
Cash 67,000
Dividends receivable 29,824
Receivable for securities sold 226,957
Receivable for taxes withheld 5,977
---------
Total assets 14,050,760
LIABILITIES
Payable for investments purchased 99,890
Dividends payable 258,443
Due to custodian 226,957
Custodian fee payable 60,000
Professional fees payable 50,496
Payable for Directors' fees (Note 3B) 10,197
Investment Advisory fee payable (Note 3A) 12,392
Accrued expenses and other payables 4,278
Transfer Agent fee payable 9,776
Printing expenses payable 16,915
----------
Total liabilities 749,344
Net assets for 1,482,822 shares outstanding (Note 5) 13,301,416
----------
Net assets consist of:
Net investment loss -
Accumulated net realized gain on investments and
foreign currency transactions (Note 2B) 771,329
Unrealized appreciation of investments, foreign
currency holdings, and other net assets (Note 2A) 2,336,699
Par value (Note 5) 14,828
Paid-in capital in excess of par value (Notes 1 and 5) 10,178,560
----------
Total net assets at value $13,301,416
----------
Net asset value and redemption price per
share ($13,301,416 / 1,482,822 shares)= $ 8.97
Maximum offering price per share ((100 / 95.25) x 8.97))= $9.42
The accompanying notes are an integral part of the financial statements.
3
<PAGE>
YAMAICHI GLOBAL FUND
(A Portfolio of Yamaichi Funds, Inc.)
STATEMENT OF OPERATIONS
for the year ended December 31, 1996
Income (Note 2D):
Dividends (net of foreign withholding taxes of $38,371) $ 356,494
Interest 2,972
- -----------
Total investment income 359,466
Expenses:
Investment Advisory fees (Note 3A) $ 160,502
Custodian expense 78,321
Professional fees 45,124
Transfer Agent expense 41,614
Directors' fees (Note 3B) 27,073
Other expenses 11,716
Printing and postage expenses 8,023
Insurance expense 8,290
--------------
Total expenses 380,663
- --------------
Net investment income (loss) -21,197
The accompanying notes are an integral part of the finanical statements.
5
<PAGE>
YAMAICHI GLOBAL FUND
(A Portfolio of Yamaichi Funds, Inc.)
Realized and unrealized gain (loss) on investments and
foreign currencies:
Net realized gain (loss) on investments sold 2,138,889
Net realized gain (loss) on foreign currency transactions -359
---------
Net realized gain (loss) on investments and foreign currency 2,138,530
transactions
Change in unrealized appreciation (depreciation) of -621,369
investments
Change in unrealized appreciation (depreciation) of
foreign currencies and
other net assets 4,731
---------
Net unrealized appreciation (depreciation) of investments,
foreign
currency holdings and other assets -616,638
----------
Net realized and unrealized gain (loss) on investments,
foreign currency
and other net assets 1,521,892
----------
Net increase (decrease) in net assets resulting from $ 1,500,695
operations
----------
The accompanying notes are an integral part of the finanical statements.
6
<PAGE>
YAMAICHI GLOBAL FUND
(A Portfolio of Yamaichi Funds, Inc.)
STATEMENT OF CHANGES IN NET ASSETS
for the years ended December 31, 1996 and 1995
Year Ended
December 31,
1996 1995
------------ ----------
Net investment income (loss) $ -2,197 $ -28,466
Net realized gain (loss) on
investments and foreign
currency transactions 2,138,530 756,905
Change in net unrealized
appreciation (depreciation) of
investments,foreign currency
holdings and other net assets -616,638 2,639,606
------------ ----------
Net increase (decrease) in net assets
resulting from operations 1,500,695 3,368,045
Distributions to shareholders from:
Net investment income - -
Funds in excess of net investment income - -
Net realized gains on investments -1,861,747 -1,177,252
The accompanying notes are an integral part of the finanical statements.
7
<PAGE>
YAMAICHI GLOBAL FUND
(A Portfolio of Yamaichi Funds, Inc.)
Net increase (decrease) in net assets from Fund share
transactions -6,514,073 -84,810
--------- -----------
Net increase (decrease) in net assets -6,875,125 1,346,983
Net assets:
Beginning of period 20,176,541 18,829,558
--------- -----------
End of period $ 13,301,416 $ 20,176,541
--------- -----------
The accompanying notes are an integral part of the finanical statements.
8
<PAGE>
YAMAICHI GLOBAL FUND
(A Portfolio of Yamaichi Funds, Inc.)
FINANCIAL HIGHLIGHTS
<TABLE>
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Year Year Year Year Year Year Year Year Period
Ended Ended Ended Ended Ended Ended Ended Ended Ended
12/31/96 12/31/95 12/31/94 12/31/93 12/31/92 12/31/91 12/31/90 12/31/89 12/31/88
Per Share Operating Performance:
Net asset value, beginning of period......... $9.32 $8.37 $9.33 $7.35 $7.93 $7.53 $9.95 $9.76 $9.95
----- ----- ----- ----- ------ ------ ------ ------ -----
Net investment income (loss)................. (0.01) (0.01) (0.05) 0.04 0.06 0.04 0.08# 0.11 0.10
Net realized gain (loss) on investments
and foreign currency................. 0.92 1.51 (0.56) 2.42 (0.24) 1.00 (2.01) 1.33 (0.21)
------ ------ ------ ----- ------- ---- ------ ---- ------
Total from investment operations............. 0.91 1.50 (0.61) 2.46 (0.18) 1.04 (1.93) 1.44 (0.11)
Distributions to shareholders from:
Capital.................................... (1.26) ------ ------ ------ (0.34) (0.60) (0.32) ------ ------
Net Investment Income...................... ------ ------ ------ (0.04) (0.06) (0.04) (0.17) ------ (0.08)
Funds in excess of Net Investment Income... ------ ------ ------ (0.02) ------ ------ ------ ------ ------
Net realized gain on investments........... ------ (0.55) (0.35) (0.42) ------ ------ ----- (1.25) ------
Net asset value:
End of Period................................ $8.97 $9.32 $8.37 $9.33 $7.35 $7.93 $7.53 $9.95 $9.76
-------------------------------------------------------------------------------
Total Return@................................ 22.96% 17.99% (6.52%) 33.62% (2.28%) 14.22% (19.39%) 15.45% (1.11%)
-------------------------------------------------------------------------------
Ratio of management fee to average net assets. 1.00% . 1.00% 1.00% 1.00% 1.00% 1.00% 1.00% 1.00% 1.00%*
Ratio of expenses to average net
assets before reduction.................... -- % . -- % 2.10% -- -- -- -- -- --
Ratio of expenses to average net assets....... 2.37% . 1.93% 2.04% 1.75% 1.78% 1.94% 1.58% 1.73% 1.92%*
Ratio of net investment income to
average net assets......................... (0.13%). (0.14%) (0.37%) 0.35% 0.77% 0.48% 0.98% 0.64% 1.86%
Portfolio turnover rate....................... 65.07% . 73.99% 70.13% 75.50% 58.20% 47.40% 99.20% 136.00% 68.70%
Shares outstanding at end
of period (000 omitted).................... 1,483 . 2,164 2,249 3,608 6,975 7,397 8,696 5,535 10,630
Average Commission Rate Paid Per Share .001608
</TABLE>
*Annualized
@Represents the aggregate total return for the period indicated and does not
reflect any applicable sales charges.
See accompanying notes
#Net investment income has been calculated based on the average share method
** For fiscal years beginning on or after September 1, 1995, a fund is required
to disclose its average commission rate per share for security trades on
which commissions are charged. This amount may vary from period to period
and fund to fund depending on the mix of trades executed in various markets
where trading practices and commission rate structures may differ.
The accompanying notes are an integral part of the
financial statements.
5
<PAGE>
YAMAICHI GLOBAL FUND (A Portfolio of Yamaichi Funds, Inc.)
NOTES TO FINANCIAL STATEMENTS
1. Organization and Business:
Yamaichi Funds, Inc. (the "Company") is an investment company registered under
the Investment Company Act of 1940, as amended. It is organized as a Maryland
corporation and is an open-end, diversified, management company. The Yamaichi
Global Fund portfolio (the "Fund") is currently the only portfolio of the
Company. On June 6, 1988, the initial 10,100 shares of the Fund were purchased
by Yamaichi International (America), Inc. ("YIA"), the Fund's Distributor. On
June 10, 1988, operations of the Fund commenced. The Funds custodian is Brown
Brothers Harriman & Co. The transfer agent is Shareholder Services Inc. The
Fund's Financial Statements are prepared in accordance with generally accepted
accounting principles which require the use of management estimates. Actual
results may vary from these estimates. The following is a summary of the
significant accounting policies followed by the Fund in the preparation of its
financial statements.
2. Significant Accounting Policies:
A. Portfolio Valuation Portfolio securities listed on a securities exchange
or on the NASDAQ National Market System ("NASDAQ") are valued by using the last
reported sale price, or, if no sales are reported, the average of the last
reported bid and asked prices. Securities not listed on a securities exchange or
NASDAQ are at the average of the quoted bid and asked prices in the
over-the-counter market. If an extraordinary event which is likely to affect the
value of a security occurs after the close of an exchange or system on which a
portfolio security is traded, such security will be valued at its fair value as
determined in good faith by the Investment Manager under procedures established
by, and under the general supervision of, the Fund's Board of Directors.
Obligations having remaining maturities of 60 days or less are valued at
amortized cost, which approximates market value. All other securities and
assets, including any restricted securities, will be valued at their fair value
as determined in good faith by the Board of Directors.
B. Forward Foreign Currency Exchange Contracts
From time to time the Fund may enter into forward foreign currency exchange
contracts to hedge certain assets denominated in foreign currencies. Contracts
are valued at the forward rate and are marked-to-market daily. The change in the
market value is recorded by the Fund as an unrealized gain or loss. The use of
forward foreign currency contracts does not eliminate fluctuations in the
underlying prices of the Fund's portfolio securities, but it does establish a
rate of exchange that can be achieved in the future. Although forward foreign
currency contracts limit the risk of loss due to a decline in the value of the
hedged currency, they also limit any potential gain that might result should the
value of the currency increase. In addition, the Fund could be exposed to risks
if the counterparties to the contracts are unable to meet the terms of their
contracts.
C. Foreign Currency Transactions
Transactions denominated in foreign currencies are recorded in the Fund's
records at the current U.S. dollar exchange rate. Asset and liability accounts
that are denominated in foreign currencies are adjusted to reflect the current
exchange rate at the end of the period. Transaction gains or losses resulting
from changes in the exchange rate during the reporting period or upon settlement
of the foreign currency transaction are reported in operations for the current
period. Since the net assets of the Fund are presented at the exchange rate and
market values at the
Continued
<PAGE>
YAMAICHI GLOBAL FUND
(A Portfolio of Yamaichi Funds, Inc.)
NOTES TO FINANCIAL STATEMENTS, CONTINUED
close of the period, it is not practical to isolate the portion of the
Fund's unrealized gains or losses arising as a result of changes in foreign
exchange rates from the fluctuations arising from changes in the market prices
of securities during the period.
D. Securities Transactions and Investment Income
Security transactions are recorded on a trade-date basis. Dividend income
is recorded on an ex-dividend date. Interest income is recorded on an accruals
basis. Realized gains or losses on sales of investments are determined on the
identified cost basis for accounting and tax purposes. Dividend and interest
income are recorded net of foreign taxes withheld where recovery of such taxes
is not assured.
E. Federal Taxes
It is the Fund's policy to qualify as a regulated investment company by
complying with the requirements of the Internal Revenue Code applicable to
regulated investment companies including the distribution of substantially all
of its income to its shareholders. Therefore, no federal income tax provision is
required. In addition, by distributing during each calendar year substantially
all of its net investment income, capital gains and certain other amounts, the
Fund will not be subject to a Federal excise tax. Income distributions are
determined in accordance with income tax regulations which may differ from
generally accepted accounting principles. These differences are primarily due to
differing treatments of income and gains on various investment securities held
by the Fund, timing differences and differing characterization of distributions
made by the Fund. For Federal income tax purposes the cost of investments is
$11,388,518. At December 31, 1996 net unrealized appreciation of investments was
$2,336,699. This consists of aggregate gross unrealized depreciation and
appreciation of $(536,649) and $2,873,348, respectively.
F. Repurchase Agreements
The Fund may enter into repurchase agreement transactions. Under each
repurchase agreement, the selling institution will be required to maintain the
value of the securities subject to the repurchase agreement at not less than
their repurchase price. Repurchase agreements could involve certain risks in the
event of default or insolvency of the other party, including possible delays or
restrictions upon the Fund's ability to dispose of the underlying securities.
Yamaichi Capital Management, Inc. (YCM), the Fund's investment adviser, acting
under the supervision of the Board of Directors, reviews the creditworthiness
and value of the collateral of those banks and dealers with which the Fund
enters into repurchase agreements to evaluate potential risks.
G. Distributions
Distributions to shareholders are recorded on the ex-dividend date. Income
and capital gain distributions are determined in accordance with federal income
tax regulations which may differ from generally accepted accounting principles.
These differences are primarily due to differing treatments of income and gains
on various investment securities held by the Fund and timing differences.
3. Fees and Related Party Transactions:
A. Investment Advisory Fees Under an agreement between the Fund and YCM
(the "Management Contract") YCM reviews and establishes investment policies for
the Fund, and pays all salaries, fees and expenses of officers and directors of
(Continued)
<PAGE>
YAMAICHI GLOBAL FUND
(A Portfolio of Yamaichi Funds, Inc.)
NOTES TO FINANCIAL STATEMENTS, CONTINUED
the Fund who are affiliated with YCM or its affiliates. In addition to reviewing
and establishing investment policies for the Fund, YCM provides executive and
other personnel for management of the Fund and provides investment advice and
portfolio management services. For such services, YCM receives a monthly fee at
the annual rate of 1.0% of the average daily net assets of the Fund. YCM's
compensation with respect to the Fund is subject to reduction to the extent that
in any year the expenses of the Fund (generally excluding brokerage commissions,
taxes, interest, distribution-related expenses and extraordinary expenses)
exceed the statutory limits of any jurisdiction in which shares of the Fund are
qualified for offer and sale. The most restrictive of such limitations as of the
date of these financial statements are those established pursuant to the
California Corporate Securities Laws of 1968, as amended which limits expenses
to: 2% of the first $30 million of average net assets, 1 1/2% of the next $70
million of average net assets and 1% of the remaining average net assets of the
Fund for any fiscal year. However, the Fund has obtained a waiver of such
limitation with respect to the components of its custodial, legal, auditing and
investment management expenses which reflect the higher costs of investing in
foreign markets.
B. Directors' Fees Directors, other than those affiliated with YCM or its
affiliates, receive an annual fee of $5,000 plus $500 for each meeting of the
Board of Directors attended as well as reimbursement for travel and out of
pocket costs.
C. Brokerage Commission During the year ended December 31, 1996, the Fund
did not engage in any brokerage transactions with YIA and Yamaichi Securities
Co., Ltd.
4. Purchases and Sales of Securities: During the year, purchases of
securities, other than securities subject to repurchase transactions, short-term
interest bearing securities held to maturity and U.S. Government Obligations,
amounted to $10,806,819. Sales of such securities during the year amounted to
$18,874,742.
5. Share Capital: The Fund has 50,000,000 authorized shares of common
stock, par value $.01 share, which may, without shareholder approval, be
increased and divided into an unlimited number of portfolios of such shares.
Share capital transactions during the years ended December 31, 1996 and December
31, 1995 as follows:
December 31, 1996 December 31, 1995
----------------- -----------------
SHARES AMOUNT SHARES AMOUNT
Sold 251 $ 2,411 468 $ 4,094
Distributions Reinvested 9,341 82,852 31,355 289,089
Reacquired (690,828) (6,599,335) (116,835) (1,136,993)
--------- -----------
Net Decrease or Increase (681,236) $(6,514,072) (85,012) $ (843,810)
Continued
<PAGE>
At December 31, 1996, there were 4 significant shareholders who
individually owned more than 5% of the shares outstanding. The aggregate total
value of shares held by such investors amounted to $12,605,077.
14
<PAGE>
YAMAICHI GLOBAL FUND
(A Portfolio of Yamaichi Funds, Inc.)
PORTFOLIO OF INVESTMENTS
% of
Industry Diversification (unaudited) Net
Assets
Automotive 1.8 %
Banking/Financial Services 23.9 %
Beverages 0.5 %
Chemicals 1.5 %
Communications 12.6 %
Conglomerate 3.2 %
Construction 4.4 %
Electronics/Computers 15.4 %
Healthcare/Pharmaceuticals 8.0 %
Industrial/Manufacturing 11.4 %
Insurance 6.0 %
Merchandising 2.1 %
Metals 1.2 %
Other 2.0 %
Steel 1.5 %
Transportation 4.3 %
Utility 3.3 %
Other net assets (3.1) %
100.00
16
<PAGE>
25
<PAGE>
YAMAICHI GLOBAL FUND
(A Portfolio of Yamaichi Funds, Inc.)
FINANCIAL STATEMENTS
FOR THE YEAR ENDED DECEMBER 31, 1996
COOPERS Coopers & Lybrand LLP
& LYBRAND a Professional Services Firm
REPORT OF INDEPENDENT ACCOUNTANTS
To The Shareholders and Board of Directors of Yamaichi Global Fund, a portfolio
of Yamaichi Funds, Inc.:
We have audited the accompanying statement of assets and liabilities of Yamaichi
Global Fund, a portfolio of Yamaichi Funds, Inc., including the portfolio of
investments as of December 31, 1996 and the related statement of operations for
the year then ended, the statement of changes in net assets for each of the two
years in the period then ended and the financial highlights for each of the
eight years in the period then ended and for the period from June 10, 1988
(commencement of operations) through December 31, 1988. These financial
statements and the financial highlights are the responsibility of the Fund's
management. Our responsibility is to express an opinion on these financial
statements and the 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 audit to obtain reasonable assurance about
whether the financial statements and the financial highlights are free of
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, 1996 by
correspondence with the custodian and brokers. An audit also includes assessing
the accounting principles used and significant test estimates made by
management, as well as evaluating the overall financial statement presentation.
We believe that our audit 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 Yamaichi
Global Fund as of December 31, 1996, the results of its operations for the year
then ended, the changes in its net assets for each of the two years in the
period then ended and the financial highlights for each of the eight years in
the period then ended and for the period from June 10, 1988 (commencement of
operations) through December 31, 1988, in conformity with generally accepted
accounting principles.
/s/Coopers & Lybrand LLP
Boston, Massachusetts
