SGY GLOBAL FUND
(formerly Yamaichi Global Fund)
STATEMENT OF ASSETS AND LIABILITIES
June 30, 1998 (unaudited)
ASSETS
Investments at value (cost $9,657,974, Note 2A) $ 9,575,200
Foreign currencies 227,521
Cash 17,185
Dividends receivable 9,871
Receivable for securities sold 300,038
Receivable for taxes withheld 3,344
Receivable for open forward foreign currency contracts (Note 1B) 1,362
---------
Total assets 10,134,521
LIABILITIES
Payable for investments purchased 141,465
Accrued custodian and fund accounting fees 5,342
Accrued professional fees 1,725
Accrued directors'fees (Note 3B) 4,225
Accrued expenses and other payables 548
Accrued transfer agent fees 5,342
---------
Total liabilities 158,647
---------
Net assets for 1,109,912 shares outstanding (Note 5) $ 9,975,874
---------
---------
Net assets consist of
Net investment income 18,085
Accumulated net realized gain on investments and
foreign currency transactions (Note 2B) 3,379,482
Unrealized depreciation of investments, foreign
currency holdings, and other net assets (Note 2A) (81,431)
Par value (Note 5) 11,099
Paid-in capital in excess of par value (Notes 1 and 5) 6,648,639
---------
Total net assets at value $ 9,975,874
---------
---------
Net asset value and redemption
price per share ($9,975,874 - 1,109.912 shares) $ 8.99
Maximum offering price per share ((1 00 @ 95.25) x $8.99) $ 9.43
The accompanying notes are an integral
part of the financial statements.
2
<PAGE>
SGY GLOBAL FUND
(formerly Yamaichi Global Fund)
STATEMENT OF OPERATIONS
for the period ended June 30, 1998
Income (Note 2D):
Dividends (net of foreign withholding taxes of $2,367) $ 42,973
Interest 28,808
---------
Total investment income 71,781
Expenses:
Investment Advisory fees (Note 3A) $ 11,493
Custodian expense 12,602
Professional fees 8,193
Transfer Agent expense 10,521
Directors' fees (Note 3B) 7,332
Other expenses 1,683
Printing and postage expense 921
Insurance expense 951
---------
Total expenses 53,696
---------
Net investment income (loss) 18,085
Realized and unrealized gain (loss) on investments
and foreign currencies:
Net realized gain (loss) on investments sold 2,166,213
Net realized gain (loss) on foreign
currency transactions (20,351)
---------
Net realized gain (loss) on investments and
foreign currency transactions 2,145,862
Change in unrealized appreciation
(depreciation) of investments (2,161,328)
Change in unrealized appreciation
(depreciation) of foreign currencies and
other net assets (95,585)
---------
Net change in unrealized appreciation
(depreciation) of investments,foreign
currency holdings and other assets (2,256,913)
---------
Net realized and unrealized gain (loss) on
investments, foreign currency and other net assets (111,051)
---------
Net increase (decrease) in net assets resulting
from operations $ (92,966)
---------
---------
The accompanying notes are an integral
part of the financial statements.
3
<PAGE>
SGY GLOBAL FUND
(formerly Yamaichi Global Fund)
STATEMENT OF CHANGES IN NET ASSETS
for the periods ended June 30, 1998 and December 31, 1997
Six Months
Ended June Year Ended
30,1998 December 31,
(Unaudited) 1997
Net investment income (loss) $ 18,085 $ (159,299)
Net realized gain (loss) on investments
and foreign currency transactions 2,145,862 2,350,210
Net change in unrealized appreciation
(depreciation) of investments, foreign
currency holdings and other net assets (2,256,913) (161,217)
--------- ---------
Net increase (decrease) in net assets resulting
from operations (92,966) 2,029,694
Distributions to shareholders from,
Net realized gains on investments (1,413,816)
Net increase (decrease) in net assets from Fund
share transactions (Note 5) (77,875) (3,770,579)
--------- ----------
Net increase (decrease) in net assets (170,841) (3,154,701)
Net assets,
Beginning of period 10,146,715 13,301,416
--------- -----------
End of period $ 9,975,874 $ 10,146,715
--------- -----------
--------- -----------
The accompanying notes are an integral part
of the financial statements.
4
<PAGE>
SGY GLOBAL FUND
(formerly Yamaichi Global Fund)
FINANCIAL HIGHLIGHTS
<TABLE>
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Period Year Year Year Year Year Year Year Year Year Period
Ended Ended Ended Ended Ended Ended Ended Ended Ended Ended Ended
6/30/98 12/31/97 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. $9.08 $8.97 $9.32 $8.37 $9.33 $7.35 $7.93 $7.53 $9.95 $9.76 $9.95
----- ----- ----- ----- ----- ----- ------ ------ ------ ------ -----
Net investment income (loss)......... 0.02 (0.14) (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.. (0.11) 1.52 0.92 1.51 (0.56) 2.42 (0.24) 1.00 (2.01) 1.33 (0.21)
------ ------ ------ ------ ------ ----- ------- ---- ------ ---- ------
Total from investment operations..... (0.09) 1.38 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 Inv. Income. ------ ------ ------ ------ ------ (0.02) ------ ------ ------ ------ ------
Net realized gain on investments... ------ (1.27) ------ (0.55) (0.35) (0.42) ------ ------ ----- (1.25) ------
----------------------------------------------------------------------------------------------
Net asset value:
End of Period........................ $8.99 $9.08 $8.97 $9.32 $8.37 $9.33 $7.35 $7.93 $7.53 $9.95 $9.76
----------------------------------------------------------------------------------------------
Total Return@........................ 15.72% 10.55% 17.22% (6.40%) 33.62% (2.28%) 14.22% (18.90%) 14.75% (1.11%)
----------------------------------------------------------------------------------------------
Ratio of management fee to
average net assets.............. 0.40%*(a) 1.00% 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.............. 1.87%*(a) 2.81% 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............... 0.63% (a)(1.22%) (0.13%) 0.14% (0.37%) 0.35% 0.77% 0.48% 0.98% 0.64% 1.86%
Portfolio turnover rate.............176.11%(a) 101.46% 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)........... 1,110 1,118 1,483 2,164 2,249 3,608 6,975 7,397 8,696 5,535 10,630
Average Commission Rate Per Share .000881 .001608
</TABLE>
*Annualized
@Represents the aggregate total return for the period indicated and does not
reflect any applicable sales charges.
#Net investment income has been calculated based on the average share method
*** The Fund Commenced operations on June 10, 1988.
(a) Ratios reflect the redemption of Yamaichi Global Fund,
see note 1 for more information.
The accompanying notes are an integral part of the financial statements.
5
<PAGE>
SGY GLOBAL FUND
(formerly Yamaichi Global Fund)
NOTES TO FINANCIAL STATEMENTS
I. Organization and Business:
On February 27, 1998 Societe Generale Asset Management
(North Pacific) Co. Ltd., a wholly owned subsidiary of
Societe Generate, purchased an 85% interest in Yamaichi
International Capital management, the Fund's investment
advisor. SG Pacific Asset Management, Inc. (the "Company")
is an investment advisor registered under the Investment
Advisory Act of 1940, as amended. The Company is organized
as a Maryland corporation. On June 6, 1988, the initial
10,100 shares of the Fund were purchased by Yamaichi
International (America), Inc. On February 11, 1998 all
existing shares of the Yarnaichi Global Fund were redeemed
at an NAV of $9.02 and the Fund was renamed as SGY Global
Fund. On April 23, 1998, the initial 100 shares of the Fund
were purchased by the Company. On April 23, 1998, operations
of the Fund commenced. The Fund's custodian and fund
accounting agent is Brown Brothers Harriman & Co. The
transfer agent is Countrywide Fund Services, Inc. The
preparation of financial statements in conformity with
generally accepted accounting principles requires management
to make estimates and assumptions that affect the reported
amounts of assets and liabilities and disclosure of
contingent assets and liabilities at the date of the
financial statements and the reported amounts of income and
expenses during the reporting period. Actual results could
differ from those estimates. The following is a summary of
significant accounting policies in conformity with generally
accepted accounting principles consistently followed by the
Fund in the preparation of the 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.
Continued
6
<PAGE>
SGY GLOBAL FUND
(formerly Yamaichi Global Fund)
NOTES TO FINANCIAL STATEMENTS, CONTINUED
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 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
accrual 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
Continued
7
<PAGE>
SGY GLOBAL FUND
(formerly Yamaichi Global Fund)
NOTES TO FINANCIAL STATEMENTS, CONTINUED
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 $9,657,974. At June 30, 1998 net
unrealized appreciation of investments was
$(82,774). This consists of aggregate gross
unrealized depreciation and appreciation of
$(87,774) and $5,000, respectively.
F. Repurchase Agreements
The Fund may enter into repurchase agreement
transactions. Under each repurchase agreernent, 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. SG Pacific Asset Management, Inc.
(SGPAM), 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 SGPAM (the
"Management Contract"), SGPAM reviews and
establishes investment policies for the Fund, and
pays all salaries, fees and expenses of officers and
directors of the Fund who are affiliated with SGPAM
or its affiliates. In addition to reviewing and
establishing investment policies for the Fund, SGPAM
provides executive and other personnel for
management of the Fund and provides investment
advice and portfolio management services. For such
services, SGPAM receives a monthly fee at the annual
rate of 1.0% of the average daily net assets of the
Fund.
Continued
8
<PAGE>
SGY GLOBAL FUND
(formerly Yamaichi Global Fund)
NOTES TO FINANCIAL STATEMENTS, CONTINUED
B. Directors' Fees
Directors, other than those affiliated with SGPAM 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.
4. Purchases and Sales of Securities:
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 $97,375 and $9,926,370 and sales of such
securities amounted to $10,104,153 and $411,700 for the
periods of January 1, 1998 to February 11, 1998, and April
27, 1998 to June 30, 1998, respectively.
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 periods ended June 30, 1998 and December 31, 1997
as follows:
Six Months Ended Year Ended
June 30,1998 December 31, 1997
Shares Amount Shares Amount
Sold 1,109,912 $ 9,998,760 37,999 $ 360,133
Distributions reinvested - - 4,475 39,693
Reacquired (1,117,700) (10,076,635) (407,596) (4,170,405)
Net increase
(decrease) (7,788) $ (77,875) (365,122) $(3,770,579)
At June 30, 1998, Societe Generale Asset Management an
affiliate of SPGAM individually owned more than 35% of the
shares outstanding. The aggregate total value of shares held
by this investor amounted to $3,506,080.
9
<PAGE>
SGY GLOBAL FUND
(formerly Yamaichi Global Fund)
PORTFOLIO OF INVESTMENTS
Investments by Country Industry Shares Held Market
Value
Australia (1.62%)
AUSTRALIA & NEW ZEALAND BK GRP 7,500 $ 51,864
NATIONAL AUSTRALIA BANK LTD 4,000 52,888
THE NEWS CORPORATION LTD 6,000 40,907
-------
145,659
Brazil (2.28%)
TELEBRAS SPON ADR 2,000 218,375
-------
218,375
Canada (1.65%)
BCE INC 1,000 42,365
POTASH CORP SASCKATCHWEWAN 1.000 75,284
TRIMARK FINANCIAL CORP /CAD/ 1,000 30,916
-------
148,565
Switzerland (0.97%)
UBS AG REGISTERED SHARES 250 93,112
-------
93,112
Germany (3.37%)
BAYER HYPOMECH BANK 2,000 126,924
VOLKSWAGENWERK AG 100 96,247
HOECHSTAG 2,000 99,964
-------
323,135
Greece (1.08%)
STET HELLAS TELECOM SA ADR 2,500 103,750
-------
101,750
10
<PAGE>
SGY GLOBAL FUND
(formerly Yarnaichi Global Fund)
PORTFOLIO OF INVESTMENTS, CONTINUED
Market
Investments by Country
Industry Shares Held Value
France (7.49%)
AXA CORP 800 90,044
BANQUE NATIONALE DE PARIS ORD 100 163,535
CANALPLUS 500 93,520
GEOPHYSIQUE CIE GENERALE 800 117,454
ALCATEL ALSTHOM CIE GEN D'ELECTR 300 61,127
TOTAL SA CL B 1,000 130,100
VALEO 600 61,376
-------
717,156
United Kingdom (5.97%)
BANK OF IRELAND 3,000 61,512
BRITISH TELECOM ORD 5,000 61,695
CADBURY SCHWEPPS ORD 3,500 54,203
DIAGEO PLC /NEW/ 5,000 59,400
DIXONS GROUP 6,000 48,187
IRISH LIFE /GBP1 10,000 94,280
PERPETUAL ORD 2,000 134,995
SELECT APPOINTMENTS FILDGS /GBP/ 4,000 57,104
-------
571,376
Hong Kong (1.21%)
HSBC HOLDINGS ORD 2,400 58,854
HUTCHISON VVHAPOA 6,000 31,595
SUN HUNG KAI PROPERTIES 6,000 25,632
-------
116,081
Italy (1.79%)
ASSICURAZIONE GENERALI 3,000 97,632
TELECOM ITALIA SPA 10,000 73,674
-------
171,306
11
<PAGE>
SGY GLOBAL FUND
(formerly Yamaichi Global Fund)
PORTFOLIO OF INVESTMENTS, CONTINUED
Market
Investments by Country Industry Shares Held Value
Japan (5.27%)
FUJI HEAVY INDUSTRIES 20,000 $ 99,461
FUJI PHOTO FILM Co. 3,000 104,890
KAO CORP 5,000 77,455
NINTENDO CO 1,000 93,018
SANKYO CO LTD 3,000 68,624
TOKYO 2,000 61,529
-------
504,977
Netherlands (2.83%)
1HC CALAND NV 1,200 67,611
ROYAL DUTCH PETROLEUM ORD (BR) 1,000 55,506
WOLTERS KLUWER CVA 600 82,432
ING GREOP 1,000 65,544
-------
271,093
Portugal (1.11%)
PORTUGAL TELECOM SPON ADR 2,000 105,875
-------
105,875
Sweden (1.69%)
SANDIVIK AB SER B FREE 2,500 68,692
SWENSKA HANDELSBK SER A 2,000 92,843
-------
161,535
Singapore (0.44%)
DEVELOPMENT BK OF SINGAPORE F/R 7,500 41,642
-------
41,642
12
<PAGE>
SGY GLOBAL FUND
(formerly Yamaichi Global Fund)
PORTFOLIO OF INVESTMENTS, CONTINUED
Market
Investments by Country Industry Shares Held Value
United States (60.33%)
AIM EASTERN EUROPE FUND 5,000 $ 40,000
ARM FINANCIAL GROUP INC CL A 4,000 88,500
AETNAINC 2,000 152,250
ALLSTATE CORP 1,000 91,563
ALPHA INDS INC 4,000 59,750
ALUMINUM CO. OF AMERICA 1,000 65,937
AMERICAN HOME PRODUCTS 2,000 103,500
ANHEUSER BUSCH INC 2,000 94,375
THE ARGENTINA FUND INC 5,000 54,375
BANKAMERICA COPR 1,000 86,438
BEAZER HOMES USA INC 3,000 77,812
BOEING CO 2,000 89,125
BRIGHTSTAR INFORMATION TECHNOLOGY 5,000 69,375
CAMPBELL SOUP CO 1,500 79,688
CANADIAN PACIFIC LTD 2,500 70,937
CENDENT CORPORATION 3,200 66,800
CHEVRON CORP 1,000 83,063
CISCO SYSTEMS INC 1,000 92,062
COMPAQ COMPUTER CORP 3,000 85,125
COMPUTER ASSOC INTL INC 2,000 111,125
COMPUTER SCIENCES CORP 2,000 128,000
CONSECOINC 2,200 102,850
COSTCO COMPANIES INC 2,000 126,125
CUMMINS ENGINE CO INC 1,700 87,125
DSC COMMUNICATIONS CORP 2,500 75,000
DIAMOND OFFSHORE DRILLING INC 1,000 40,000
DU PONT (El) DE NEMOURS 1,500 111,938
FEDERATED INVESTORS INC CL B 3,500 64,750
FLEETWOOD ENTERPRISES 2,500 100,000
FORD MOTOR CO 2,000 118,000
13
<PAGE>
SGY GLOBAL FUND
(formerly Yamaichi Global Fund)
PORTFOLIO OF INVESTMENTS, CONTINUED
Market
Investments by Country Industry Shares Held Value
FORTUNE BRANDS 3.000 $ 115,312
GENERAL ELECTRIC CO 2,000 182,000
GLOBAL MARINE INC 5,000 93,438
GOODYEAR TIRE & RUBBER CO 1,500 96,656
HILTON HOTELS CORP 2,600 71,250
INTEL CORP 1,000 74,125
INTERNATIONAL BUSINESS MACHINES 1,000 114,812
INTL INTEGRATION INC 2,000 34,500
INTERNATIONAL PAPER CO 1,700 73,100
MC GRAW HILL INC 1,500 122,344
MELLON BANK CORP 2,000 139,250
MERCK & CO 1,000 133,750
MILLIPORE CORP 2,200 59,950
MORGAN ST DEAN WITTER CORP 59 99,525
NETSCAPE COMMUNICATIONS CORP 4,000 108,250
PBOC HOLDINGS INC 15,000 207,188
PACIFIC CENTURY FINIL CORP 4,000 96,000
PHILIP MORRIS COS INC 1,000 39,375
PITTSTON BRINKS GROUP 2,000 73,750
PUBLIC SVC ENTERPRISE GROUP 2,500 86,093
SBC COMMUNICATIONS INC 2,000 80,000
SCHERING PLOUGH 1,000 91,625
SIERRA HEALTH SERVICES 1,000 83,119
SPRINT CORPORATION 1,000 70,500
STERLING COMM INC 2,500 121,250
SUN MICROSYSTEMS INC 1,500 65,156
TIME WARNER INC 1,000 85,438
TRAVELERS GROUP INC 1,000 60,625
UALCORP 1,500 117,000
USWEBCORP 2,500 59,219
VENTASINC 5,000 36,250
14
<PAGE>
SGY GLOBAL FUND
(formerly Yamaichi Global Fund)
PORTFOLIO OF INVESTMENTS, CONTINUED
Market
Investments by Country Industry Shares Held Value
WORLDCOM INC GA 2,000 $ 96,875
XEROX CORP 1,500 152,438
ZIFF DAVIS INC 1,500 20,812
-------
5,776,563
-------
Total Common Stocks (98.90%) 9,470,200
Senior Securities (1.10%)
CNB CAPITAL TRUST I CV PFD 105,000
-------
-------
Total Investments $ 9,575,200
15
