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Previous: GABELLI SERIES FUNDS INC, 10-Q, 1995-06-12 |
Next: PUTNAM HIGH YIELD MUNICIPAL TRUST, N-30D, 1995-06-12 |
Filed with the Securities and Exchange Commission on June 12, 1995
File No. 811-5779
File No. 33-90354
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
SCHEDULE 13E-4
ISSUER TENDER OFFER STATEMENT
(Pursuant to Section 13(e)(1) of the Securities Exchange Act of 1934)
NEW WORLD INVESTMENT FUND
(Name of Issuer)
(Name of Person(s) Filing Statement)
SHARES OF BENEFICIAL INTEREST, $.001 Par Value Per Share
(Title of Class of Securities)
(648902 10 4)
(CUSIP Number of Class of Securities)
Roberta A. Conroy, Esq.
Vice President and Secretary
New World Investment Fund
11100 Santa Monica Blvd., 15th Floor
Los Angeles, California 90025
(310) 996-6000
(Name, Address and Telephone Number of Person Authorized to Receive
Notices and Communications on Behalf of Person(s) Filing Statement)
Copies to:
Robert W. Helm, Esq.
Dechert Price & Rhoads
1500 K Street, N.W.
Washington, D.C. 20005
(202) 626-3300
June 12, 1995
(Date Tender Offer First Published,
Sent or Given to Security Holders)
THE EXHIBIT INDEX IS ON PAGE 5.
CALCULATION OF FILING FEE
<TABLE>
<CAPTION>
<S> <C> <C> <C>
Transaction $11,845,759.68 Amount of $2,369.15
Valuation (a): Filing Fee (b):
</TABLE>
(a) Calculated as the aggregate maximum purchase price to be paid for 629,424
shares in the Offer
(b) Calculated as 1/50th of 1% of the Transaction Valuation
j Check box if any part of the fee is offset as provided by Rule 0-11(a)(2) and
identify the filing with which the offsetting fee was previously paid.
Identify the previous filing by registration statement number, or the Form or
Schedule and the date of its filing.
Amount Previously Paid: _______________
Form or Registration No.: _______________
Filing Party: ________________________
Date Filing: ________________________
ITEM 1. SECURITY AND ISSUER.
(a) The name of the issuer is New World Investment Fund, a closed-end
investment company organized as a Massachusetts business trust (the "Fund").
The principal executive offices of the Fund are located at 11100 Santa Monica
Blvd., 15th Floor, Los Angeles, California 90025.
(b) The title of the securities being sought is Shares of Beneficial
Interest, $.001 par value per share (the "Shares"). As of June 9, 1995, there
were 12,588,493 Shares issued and outstanding.
The Fund has made an offer for the tender of up to 629,424 Shares at a price
equal to net asset value per Share calculated on the day the tender offer
terminates, net to the seller in cash, upon the terms and subject to the
conditions set forth in the Offer to Purchase dated June 12, 1995 (the "Offer
to Purchase") and the related Letter of Transmittal (which together constitute
the "Offer"). A copy of each of the Offer to Purchase and the Letter of
Transmittal is attached hereto as Exhibit (a) (1) and Exhibit (a) (2),
respectively. Reference is hereby made to the Cover Page and Section 1
("Number of Shares") of the Offer to Purchase, which are incorporated herein by
reference. The Fund has been advised that none of the trustees or officers of
the Fund intend to tender any Shares pursuant to the Offer. Certain entities
that are affiliates of the Fund by virtue of owning 5% or more of the Fund's
outstanding Shares may tender Shares pursuant to the Offer.
(c) The Shares are not currently traded on an established trading market.
(d) Not Applicable.
ITEM 2. SOURCE AND AMOUNT OF FUNDS OR OTHER CONSIDERATION.
(a)-(b) Reference is hereby made to Section 9 ("Source and Amount of Funds)
of the Offer to Purchase, which is incorporated herein by reference.
ITEM 3. PURPOSE OF THE TENDER OFFER AND PLANS OR PROPOSALS OF THE ISSUER OR
AFFILIATE.
Reference is hereby made to Section 7 ("Purpose of the Offer"), Section 8
("Certain Effects of the Offer") and Section 9 ("Source and Amount of Funds")
of the Offer to Purchase, which are incorporated herein by reference. Except
as set forth therein, the Fund has no plans or proposals which relate to or
would result in (a) the acquisition by any person of additional securities of
the Fund (other than the offering to the public of an additional registered,
but not effective, 3,763,201 shares of beneficial interest in a continuous
offering, 3,167,381 shares of which will be deregistered in acordance with the
Fund's undertaking in Item 33. (3) of its registration statement, prior to July
14, 1995. The Fund also intends to register an equivalent number of shares
during this period.) or the disposition of securities of the Fund; (b) an
extraordinary corporate transaction, such as a merger, reorganization or
liquidation, involving the Fund; (c) a sale or transfer of a material amount of
assets of the Fund; (d) any change in the present Board of Trustees or
management of the Fund, including, but not limited to, any plans or proposals
to change the number or the term of trustees, or to fill any existing vacancy
on the board or to change any material term of the employment contract of any
executive officer; (e) any material change in the present dividend rate or
policy, or indebtedness or capitalization of the Fund; (f) any other material
change in the Fund's organizational structure of business, including any plans
or proposals or make any changes in Section 13 of the Investment Company Act of
1940; (g) changes in the Fund's Declaration of Trust, By-laws or instruments
corresponding thereto or other actions which may impede the acquisition of
control of the Fund by any person; (h) causing a class of equity security of
the Fund to be delisted from a national securities exchange; (i) a class of
equity security of the Fund becoming eligible for termination of registration
under the Investment Company Act of 1940; or (j) the suspension of the Fund's
obligation to file reports pursuant to Section 15(d) of the Securities Exchange
Act of 1934.
ITEM 4. INTEREST IN SECURITIES OF THE ISSUER.
Reference is hereby made to Section 1 ("Number of Shares") of the Offer to
Purchase, which is incorporated herein by reference.
ITEM 5. CONTRACTS, ARRANGEMENTS, UNDERSTANDINGS OR RELATIONSHIPS WITH RESPECT
TO THE ISSUER'S SECURITIES.
Reference is hereby made to Section 14 ("Fees and Expenses") of the Offer to
Purchase, which is incorporated herein by reference. Except as set forth
therein, the Fund does not know of any contract, arrangement, understanding or
relationship relating, directly or indirectly, to the Offer (whether or not
legally enforceable) between the Fund or any of the Fund's executive officers
or trustees or any associate of any such executive officers or trustees and any
person with respect to any securities of the Fund (including, but not limited
to, any contract, arrangement, understanding or relationship concerning the
transfer or the voting of any such securities, joint ventures, loan or option
arrangements, puts or calls, guaranties of loans, guaranties against loss, or
the giving or withholding of proxies, consents or authorizations).
ITEM 6. PERSONS RETAINED, EMPLOYED OR TO BE COMPENSATED.
Reference is hereby made to Section 14 ("Fees and Expenses") of the Offer to
Purchase, which is incorporated herein by reference.
ITEM 7. FINANCIAL INFORMATION
(a)-(b) Reference is hereby made to Section 10 ("Certain Information About
the Fund") of, and the financial statements filed as Exhibits A-1 and A-2 to,
the Offer to Purchase, which are incorporated herein by reference.
ITEM 8. ADDITIONAL INFORMATION.
(a) None.
(b) None.
(c) Not applicable.
(d) None.
(e) Reference is hereby made to the Offer to Purchase, attached hereto as
Exhibit (a)(1), which contains throughout information which may be material to
the decisions of the holders of Shares with respect to whether or not to tender
Shares pursuant to the Offer, and which is incorporated herein in its entirety
by reference.
ITEM 9. MATERIAL TO BE FILED AS EXHIBITS.
(a) (1) Offer to Purchase dated June 12, 1995
(2) Form Letter of Transmittal.
(3) Consent of Price Waterhouse LLP.
SIGNATURE
After due inquiry and to the best of my knowledge and belief, I certify that
the information set forth in this statement is true, complete and correct.
NEW WORLD INVESTMENT FUND
<TABLE>
<CAPTION>
<S> <C>
Date: June 12, 1995 By: /s/ Roberta A. Conroy
Roberta A. Conroy
Vice President and Secretary
</TABLE>
EXHIBIT INDEX
EXHIBIT PAGE
(a) (1) Offer to Purchase dated June 12, 1995.
(a) (2) Form Letter of Transmittal.
(a) (3) Consent of Price Waterhouse LLP.
MEMORANDUM
TO: Shareholders of New World Investment Fund
FROM: Roberta A. Conroy, Vice President and Secretary
DATE: June 9, 1995
RE: Cash Tender Offer
New World Investment Fund (the "Fund") filed a Schedule 13E-4 on June 9,
1995, with the Securities and Exchange Commission in connection with its cash
tender offer. Enclosed is an Offer to Purchase and a Letter of Transmittal
fully describing the terms of the tender offer and how shares may be tendered.
Please read the Offer and Letter carefully and call Jennifer Butler at (310)
996-6229 if you have any questions.
The salient features of the tender offer are highlighted below. Please refer
to the enclosed documents for a more complete description of the tender offer.
* * * * * * * * * *
The Fund is making a cash tender offer for up to 629,424 of its outstanding
shares of beneficial interest ("Shares") at a price equal to the net asset
value of the Shares as of the termination date of the tender offer period. The
purposes of the tender offer are to (1) provide a means for Shareholders to
sell Shares and (2) to attract new shareholders to the Fund.
The scheduled termination date of the tender offer is July 7, 1995 at 9:00
p.m., Pacific Time (midnight Eastern Time). Shares tendered may be withdrawn
at any time prior to the expiration of the tender offer and at any time prior
to having been accepted for payment by the Fund.
Shares will be accepted for payment if a shareholder completes the Letter of
Transmittal and any other required documents (including share certificates) and
forwards them to my attention at Capital International, Inc. ("CII"), 11100
Santa Monica Blvd., 15th Floor, Los Angeles, California 90025. Shareholders
may withdraw any or all of their Shares by providing notice of intent to
withdraw to CII by a written, telephonic or facsimile notice of withdrawal.
Such notice must be received prior to the Shares having been accepted for
payment by the Fund and must specify the name of the person having deposited
the Shares to be withdrawn.
If Shares tendered exceed 629,424, including any increase authorized by the
officers of the Fund, Shares will be accepted for payment on a pro rata basis.
NEW WORLD INVESTMENT FUND
OFFER TO PURCHASE FOR CASH UP TO 629,424
OF ITS ISSUED AND OUTSTANDING SHARES
AT NET ASSET VALUE PER SHARE
THE OFFER AND WITHDRAWAL RIGHTS WILL EXPIRE AT 9:00 P.M., PACIFIC TIME
(MIDNIGHT EASTERN TIME), ON JULY 14, 1995, UNLESS EXTENDED.
To the Holders of Shares of
New World Investment Fund
The Fund is making an offer to all shareholders to purchase 629,424 (or such
lesser number as shall be tendered) of the shares of beneficial interest of the
Fund ("Shares") owned by each shareholder.
This offer to Purchase and the related Letter of Transmittal together
constitute the "Offer." The purpose of the Offer is to provide liquidity of
Fund Shares.
The Offer and Withdrawal Rights will expire at 9:00 p.m,. Pacific Time
(midnight Eastern Time) on July 14, 1995 (the "Termination Date").
Capital International, Inc. will be available to accept delivery of tenders or
withdrawal rights until 9:00 p.m., Pacific Time, on the Termination Date.
If more than 629,424 Shares are duly tendered prior to the expiration of the
Offer, the Fund will, assuming no changes in the factors originally considered
by the Board of Trustees when it determined to make the Offer, accept Shares
for payment on a pro rata basis.
THE OFFER IS NOT CONDITIONED UPON ANY MINIMUM NUMBER OF SHARES BEING TENDERED.
The Shares are not currently traded on an established trading market.
Net Asset Value ("NAV") per share was $18.82 on June 9, 1995. During the
period that the Offer remains open, the Fund will calculate NAV on a weekly
basis. Net Asset Value of the Fund will be determined at 3:30 p.m. Pacific
Time (6:30 p.m. Eastern Time) on the Termination Date. You may learn the most
recent NAV calculation by calling (310) 996-6229.
You are urged to obtain current NAV quotations for the Shares.
IMPORTANT
Should you desire to tender any or all of your Shares, you should complete and
sign the Letter of Transmittal and mail or deliver it with your share
certificates(s), if any, and any other required documents to Capital
International, Inc. ("CII") at its address, which is set forth below.
NEITHER THE FUND NOR ITS BOARD OF TRUSTEES MAKES ANY RECOMMENDATION TO ANY
SHAREHOLDER AS TO WHETHER TO TENDER OR REFRAIN FROM TENDERING SHARES. EACH
SHAREHOLDER MUST MAKE HIS OR HER OWN DECISION WHETHER TO TENDER SHARES.
NO PERSON HAS BEEN AUTHORIZED TO MAKE ANY RECOMMENDATION ON BEHALF OF THE FUND
AS TO WHETHER SHAREHOLDERS SHOULD TENDER SHARES PURSUANT TO THE OFFER. NO
PERSON HAS BEEN AUTHORIZED TO GIVE ANY INFORMATION OR TO MAKE ANY
REPRESENTATIONS IN CONNECTION WITH THE OFFER OTHER THAN THOSE CONTAINED HEREIN
OR IN THE LETTER OF TRANSMITTAL. IF GIVEN OR MADE, SUCH RECOMMENDATION AND
SUCH INFORMATION AND REPRESENTATIONS MUST NOT BE RELIED UPON AS HAVING BEEN
AUTHORIZED BY THE FUND.
THIS TRANSACTION HAS NOT BEEN APPROVED OR DISAPPROVED BY THE SECURITIES AND
EXCHANGE COMMISSION NOR HAS THE COMMISSION PASSED UPON THE FAIRNESS OR MERITS
OF SUCH TRANSACTION NOR UPON THE ACCURACY OR ADEQUACY OF THE INFORMATION
CONSTRAINED IN THIS DOCUMENT. ANY REPRESENTATION TO THE CONTRARY IS UNLAWFUL.
Questions and requests for assistance may be directed to CII at the address
and telephone number set forth below. Requests for additional copies of the
Offer to Purchase and the Letter of Transmittal should be directed to CII.
June 12, 1995 NEW WORLD INVESTMENT FUND
Capital International, Inc.
11100 Santa Monica Boulevard
15th Floor
Los Angeles, California 90025
Attn: Roberta A. Conroy
(310) 996-6202
TABLE OF CONTENTS
<TABLE>
<CAPTION>
SECTION PAGE
<S> <C> <C>
1. Number of Shares 3
2. Procedure for Tendering Shares 4
3. Withdrawal Rights 4
4. Payment for Shares 5
5. Certain Conditions of the Offer 5
6. Price Range of Shares; Dividends 6
7. Purpose of the Offer 6
8. Certain Effects of the Offer 6
9. Source and Amount of Funds 6
10. Certain Information About the Fund 6
11. Additional Information 7
12. Certain Federal Income Tax Consequences 7
13. Extension of Tender Period; Termination; Amendments 8
14. Fees and Expenses 9
15. Miscellaneous 9
</TABLE>
EXHIBIT A-1 Audited Financial Statements
EXHIBIT A-2 Unaudited Financial Statements
1. NUMBER OF SHARES. The Fund will, upon the terms and subject to the
conditions of the Offer, purchase up to 629,424 of its issued and outstanding
Shares which are tendered and not withdrawn prior to 9:00 p.m., Pacific Time,
on July 14, 1995 (such time and date being hereinafter called the "Expiration
Date"). The Fund reserves the right to extend the Offer.
The Offer is being made to all shareholders of the Fund and is not conditioned
upon any number of Shares being tendered. If more than 629,424 Shares are duly
tendered prior to the expiration of the Offer, the Fund will, assuming no
changes in the factors originally considered by the Board of Trustees when it
initially determined to make the Offer, accept Shares for payment on a pro rata
basis. The Fund reserves the right to extend the offer. See Section 13.
On June 9, 1995, there were approximately 12,588,493 Shares issued and
outstanding and there were 11 holders of record of Shares. All shareholders
are accredited investors as defined in Regulation D under the Securities Act of
1933. The Fund has been advised that none of the trustees or officers of the
Fund or CII intend to tender any Shares pursuant to the Offer. Certain
entities that are affiliates of the Fund by virtue of owning 5% or more of the
Fund's outstanding Shares may tender Shares pursuant to the Offer.
2. PROCEDURE FOR TENDERING SHARES. To tender Shares pursuant to the Offer,
certificates for such Shares, together with a properly completed and duly
executed Letter of Transmittal and any other documents required by the Letter
of Transmittal, must be received on or prior to the Expiration Date by CII.
Shares must be properly tendered prior to the Expiration Date.
If the Letter of Transmittal is signed by the registered holder of the Shares
tendered therewith and payment is to be made directly to such registered
holder, no signature guarantee is required. In all other cases, all signatures
on the Letter of Transmittal must be guaranteed by an eligible financial
institution, such as a member firm of a registered national securities exchange
or a commercial bank or trust company having an office, branch or agency in the
United States ("Eligible Institution"). See Instruction 1 to the Letter of
Transmittal.
Payment for Shares tendered and purchased will be made only after receipt by
CII of certificates therefor, a properly completed and duly executed Letter of
Transmittal and any other documents required by the Letter of Transmittal.
THE METHOD OF DELIVERY OF ALL DOCUMENTS, INCLUDING CERTIFICATES FOR SHARES, IS
AT THE ELECTION AND RISK OF THE PARTY TENDERING THE SHARES. IF DOCUMENTS ARE
SENT BY MAIL, IT IS RECOMMENDED THAT THEY BE SENT BY REGISTERED MAIL, PROPERLY
INSURED, WITH RETURN RECEIPT REQUESTED.
All questions as to the validity, form, eligibility (including time of
receipt) and acceptance of tenders will be determined by the Fund, in its sole
discretion; its determination shall be final and binding. The Fund reserves
the absolute right to reject any or all tenders determined by it not to be in
appropriate form or the acceptance of or payment for which would, in the
opinion of the Fund's counsel, be unlawful. The Fund also reserves the
absolute right to waive any defect in any tender with respect to any particular
Shares or any particular shareholder, and the Fund's interpretations of the
terms and conditions of the Offer will be final and binding. Unless waived,
any defects or irregularities in connection with tenders must be cured within
such times as the Fund shall determine. Tenders will not be deemed to have
been made until the defects or irregularities have been cured or waived.
Neither the Fund, nor CII, nor any other person shall be obligated to give
notice of any defects or irregularities in tenders, nor shall any of them incur
any liability for failure to give such notice.
A tender of Shares made pursuant to any one of the procedures set forth above
will constitute an agreement between the tendering shareholder and the Fund in
accordance with the terms and subject to the conditions of the Offer.
3. WITHDRAWAL RIGHTS. Tenders made pursuant to the Offer will be irrevocable,
except that Shares tendered may be withdrawn prior to the Expiration Date or at
any time prior to acceptance of payment by the Fund.
To be effective, a written, telegraphic, telex or facsimile transmission
notice of withdrawal must be timely received by CII at the appropriate address
set forth on the Letter of Transmittal. Any notice of withdrawal must specify
the name of the person who deposited the Shares to be withdrawn, the number of
Shares to be withdrawn and, if the certificates representing such Shares have
been delivered or otherwise identified to CII, the name of the registered
holder (s) of such Shares as set forth in such certificates and the number of
Shares to be withdrawn. If the certificates have been delivered to CII, then,
prior to the release of such certificates, the tendering shareholder must also
submit the serial numbers shown on the particular certificates evidencing such
Shares and the signature on the notice of the withdrawal must be guaranteed by
an Eligible Institution.
All questions as to the form and validity (including time of receipt) of
notices of withdrawal will be determined by the Fund in its sole discretion;
its determination shall be final and binding. Shares properly withdrawn shall
not thereafter be deemed to have been tendered for purposes of the Offer.
However, withdrawn Shares may be retendered by subsequently following one of
the procedures described in Section 2, above, prior to the Expiration Date.
4. PAYMENT FOR SHARES. Payment for Shares will be made promptly by the Fund to
tendering shareholders after the Expiration Date. If a determination is made
to accept Shares for payment on a pro rata basis, there may be some delay in
payment because of the difficulty in determining the precise number of Shares
each tendering shareholder is entitled to have purchased pursuant to the offer.
In the event of proration, the Fund will not pay for Shares accepted for
payment pursuant to the Offer until the final proration factor is known.
Certificates for Shares not purchased by the Fund will be returned promptly
following the termination, expiration or withdrawal of the Offer, without
expense to the tendering shareholder. The Fund will not pay any interest on
the purchase price under any circumstances.
ANY TENDERING SHAREHOLDER OR OTHER PAYEE WHO FAILS TO COMPLETE FULLY AND SIGN
THE SUBSTITUTE FORM W-9 (THE SIGNATURE FORM) IN THE LETTER OF TRANSMITTAL MAY
BE SUBJECT TO REQUIRED FEDERAL INCOME TAX WITHHOLDING OF 31% OF THE GROSS
PROCEEDS PAID TO SUCH SHAREHOLDER PURSUANT TO THE OFFER. SEE SECTION 12,
BELOW.
5. CERTAIN CONDITIONS OF THE OFFER. The Fund shall not be required to accept
tenders or effect repurchases if in its sole discretion it determines (1) such
transactions, if consummated, would impair the Fund's status as a regulated
investment company under the Internal Revenue Code (which could cause the
Fund's income to be taxed at the corporate level in addition to the taxation of
shareholders who receive dividends from the Fund); (2) the Fund would not be
able to liquidate portfolio securities in an orderly manner and consistent with
the Fund's investment policies and objective in order to repurchase Shares; or
(3) there is, in the Board of Trustees' judgment, any material (a) legal action
or proceeding instituted or threatened challenging such transactions or
otherwise materially adversely affecting the Fund, (b) suspension of or
limitation on prices for trading in securities generally on the New York Stock
Exchange or any foreign exchange on which portfolio securities of the Fund are
traded, (c) declaration of a banking moratorium by federal, state or foreign
authorities or any suspension of payment by banks in the United States, New
York State, or foreign countries in which the Fund invests, (d) limitation
affecting the Fund or the issuers of its portfolio securities imposed by
federal, state or foreign authorities on the extension of credit by lending
institutions or on the exchange of foreign currency, (e) commencement of war,
armed hostilities or other international or national calamity directly or
indirectly involving the United States or other countries in which the Fund
invests, or (f) other events or condition which would have a material adverse
effect on the Fund or its shareholders if tendered Shares were purchased.
6. PRICE RANGE OF SHARES; DIVIDENDS. On May 26, 1989, when the Fund commenced
operations, the NAV was $10.00 per share. As of June 9, 1995, the NAV was
$18.82 per Share. Shareholders can obtain current NAV quotations, which are
calculated on a weekly basis, by calling (310) 996-6229.
7. PURPOSE OF THE OFFER. The purpose of the Offer is to provide liquidity to
the Shareholders of the Fund and to attract new Shareholders to the Fund.
Shares purchased by the Fund are held in its treasury and may be reissued,
subject to the requirements of the federal securities law. The Investment
Company Act of 1940 provides that Shares may not be issued at prices below NAV
except in connection with an offering to shareholders or with prior shareholder
approval.
The Fund has no present plans or proposals which relate to or would result in
any extraordinary transaction such as a merger, reorganization (except as
resulting from the Offer or otherwise set forth herein), or any changes in the
present Board of Trustees or management of the Fund, or other material changes
in the Fund's organizational structure or business, or any changes in its
investment policy. Nonetheless, although not related to the Offer, the Fund is
currently in the process of registering a number of Shares under the Securities
Act of 1933 for purposes of a public offering of such Shares.
8. CERTAIN EFFECTS OF THE OFFER. The purchase of Shares pursuant to the Offer
will have the effect of increasing the proportionate interest in the Fund of
shareholders who do not tender their Shares. Shareholders who retain their
Shares, however, will be subject to the possible increased risks that may
result from the reduction in the Fund's liquidity and aggregate assets
resulting from payment for the Shares. The Fund believes these risks are
limited due to the Fund's cash position and the small size of the tender.
9. SOURCE AND AMOUNT OF FUNDS. The total cost to the Fund of purchasing
629,424 Shares pursuant to the Offer will be approximately $12 million. The
Fund anticipates that the purchase price for any Shares acquired pursuant to
the Offer will be derived from cash on hand as proceeds from previous sales of
Fund Shares and from the liquidation of portfolio securities occurring in the
normal course of business.
10. CERTAIN INFORMATION ABOUT THE FUND. The Fund was organized as a business
trust in the United States under the laws of the Commonwealth of Massachusetts
of March 1, 1989. The Fund is a non-diversified, closed-end management
investment company that seeks, over the long-term, a high level of total return
by investing primarily in securities of Latin American issuers. Under normal
market conditions, the Fund invests between 60% and 90% of its total assets in
equity securities of Latin American issuers, primarily traded in the markets of
Argentina, Brazil, Chile, Colombia, Mexico, Peru, and Venezuela. The Fund is
advised by CII, a registered investment adviser under the Investment Advisers
Act of 1940.
The principal executive office of the Fund is located at 11100 Santa Monica
Blvd., 15th Floor, Los Angeles, California 90025.
11. ADDITIONAL INFORMATION. The Fund has filed a statement on Schedule 13E-4
with the Securities and Exchange Commission (the "Commission") which includes
certain additional information relating to the Offer. Such material may be
inspected and copied at prescribed rates at the Commission's public reference
facilities at Judiciary Plaza, 450 Fifth Street, N.W., Washington, D.C. 20549;
7 World Trade Center, Suite 1300, New York, New York 10048; and Citicorp
Center, 500 West Madison Street, Suite 1400, Chicago, Illinois 60661. Copies
of such material may also be obtained by mail at prescribed rates from the
Public Reference Branch of the Commission at 450 Fifth Street, N.W.,
Washington, D.C. 20549.
12. CERTAIN FEDERAL INCOME TAX CONSEQUENCES. The discussion below is a summary
of the federal income tax consequences of a sale of Shares pursuant to the
Offer. You should consult your own tax adviser for a complete description of
the tax consequences to you of a sale of Shares pursuant to the Offer.
The sale of Shares pursuant to the Offer will be a taxable transaction for
federal income tax purposes, either as a "sale or exchange," or, under certain
circumstances, as a "dividend." Under Section 302 of the Internal Revenue Code
of 1986, as amended (the "Code"), a sale of Shares pursuant to the Offer will
generally be treated as "sale or exchange" if the receipt of cash: (a) is
"substantially disproportionate" with respect to the shareholder; (b) results
in a "complete redemption" of the shareholder's interest in the Fund, or (c) is
"not essentially equivalent to a dividend" with respect to the shareholder. A
"substantially disproportionate" distribution generally requires a reduction of
more than 20% in the shareholder's proportionate interest in the Fund after
repurchases of all Shares are complete. A "complete redemption" of a
shareholder's interest generally requires that the shareholder dispose of all
Shares directly owned or attributed to it under Section 318 of the Code. A
distribution "not essentially equivalent to a dividend" requires that there be
a "meaningful reduction" in the shareholder's interest, which should be the
case if the shareholder has a minimal interest in the Fund, exercises no
control over Fund affairs and suffers a reduction in its proportionate
interest. If any of these three tests for "sale or exchange" treatment is met,
you will recognize gain or loss equal to the difference between the amount of
cash received pursuant to the Offer and the adjusted tax basis of the Shares
sold. Such gain or loss will be a capital gain or loss if the Shares sold have
been held by you as a capital asset.
If none of the Code Section 302 tests is met, you will be treated as having
received a "dividend" in an amount equal to the full amount of cash received
pursuant to the Offer, provided that the Fund has sufficient earnings and
profits to support the "dividend." In that case, your tax basis in the Shares
sold will not reduce the amount of the "dividend." Rather, the tax basis in
the Shares tendered to the Fund will be transferred to any remaining Shares
held by you.
The marginal tax rates for dividends and capital gains may differ. In
addition, the differentiation between "dividend" and "sale or exchange"
treatment remains important with respect to the amount and character of income
tendering shareholders are deemed to receive.
In the event that the sale of Shares by a corporate shareholder pursuant to
the Offer is treated as a dividend, the corporate shareholder may be entitled
to claim a "dividends received deduction" on the cash received. However,
corporate shareholders should consult their tax advisers about certain
provisions of the Code that may affect the "dividends received deduction"
including, without limitation, the alternative minimum tax.
The Fund will be required to withhold 31% of the gross proceeds paid to a
shareholder or other payee pursuant to the Offer unless either (a) the
shareholder provides the shareholder's taxpayer identification number and
certifies under penalties of perjury (i) that such number is correct, and (ii)
either (A) the shareholder is not subject to backup withholding as a result of
a failure to report all interest or dividends, or (B) the Internal Revenue
Service has notified the shareholder that the shareholder is no longer subject
to backup withholding; or (b) an exception applies under applicable law and
regulations. Therefore, unless such an exception exists and is proved in a
manner satisfactory to the Fund and CII, each tendering shareholder should
complete and sign the Substitute Form W-9 included as part of the Letter or
Transmittal, so as to provide the information and certification necessary to
avoid backup withholding. Non-U.S. shareholders may be required to provide the
Fund with a completed Form W-8, available from CII, in order to avoid 31%
backup withholding (if they have not already done so).
Non-U.S. shareholders may be subject to dividend tax withholding at a 30% rate
or a lower applicable tax treaty rate on the gross proceeds received by such
shareholder, if the proceeds are treated as a "dividend" under the rules
described above. In the event that the tax status of the redemption proceeds
as a dividend is not clear to the Fund and CII at the time of payment, the Fund
will withhold a portion of the proceeds as if the proceeds constitute a
dividend. In that case, the redeeming shareholder may be eligible to claim a
refund of the withheld tax if it can demonstrate that the proceeds were not
dividends. Non-U.S. shareholders should consult their tax advisers regarding
application of these withholding rules.
13. EXTENSION OF TENDER PERIOD; TERMINATION; AMENDMENTS. The Fund reserves the
right, at any time and from time to time, to extend the period of time during
which the Offer is pending by notifying all shareholders of such extension or
extensions. In the event that the Fund so elects to extend the tender period,
the NAV for the Shares tendered will be determined as of the close of the New
York Stock Exchange on the Expiration Date, as extended. During any such
extension, all Shares previously tendered and not purchased or withdrawn will
remain subject to the Offer. The Fund also reserves the right, at any time and
from time to time up to and including the Expiration Date, to (a) terminate the
Offer and not to purchase or pay for any Shares, if any of the conditions set
forth in Item 6 above arise, and (b) amend the Offer in any respect voted upon
by the Board of Trustees. In the event of termination or amendment of the
Offer, the Fund will promptly notify shareholders of such termination or
amendment and in any case such notification will be made no later than 9:00
a.m. Pacific time, on the next business day after the previously scheduled
Expiration Date and will disclose the approximate number of Shares tendered as
of that date. All notifications to shareholders will be in the form of direct
communications between CII and shareholders.
14. FEES AND EXPENSES. Other than as stated below, no persons have been
employed, retained or are to be compensated by the Fund to make solicitations
or recommendations in connection with this Offer. CII will be reimbursed for
its reasonable out-of-pocket expenses. It may also be indemnified for certain
liabilities and expenses in connection with the Offer.
15. MISCELLANEOUS. The Offer is not being made to, nor will the Fund accept
tenders from, holders of Shares in any jurisdiction in which the Offer would
not be in compliance with the securities laws of such jurisdiction.
June 12, 1995 New World Investment Fund
NEW WORLD INVESTMENT FUND
INVESTMENT PORTFOLIO, JUNE 30, 1994
<TABLE>
<CAPTION>
Equity-Type Securities
INDUSTRY DIVERSIFICATION Common Preferred Convertible Bonds Percent of
Stocks Net Assets
Stocks Bonds
<S> <C> <C> <C> <C> <C>
Telecommunications 8.05% 9.51% -% -% 17.56%
Utilities: Electric & Gas 9.34 2.07 - - 11.41
Merchandising 6.40 4.13 .55 - 11.08
Building Materials & Components 8.04 .82 - - 8.86
Beverages & Tobacco 5.44 .97 - - 6.41
Banking 2.47 .99 .89 - 4.35
Forest Products & Paper 2.95 1.21 .08 - 4.24
Metals: Steel 1.62 2.50 .08 - 4.20
Appliances & Household Durables - 3.24 - - 3.24
Financial Services 2.94 - - .19 3.13
Equity Common Trusts 1.96 - - - 1.96
Multi-Industry 1.70 - - - 1.70
Broadcasting & Publishing 1.46 - - - 1.46
Chemicals 1.43 - - - 1.43
Business & Public Services .19 1.14 - - 1.33
Industrial Components .34 .64 - .33 1.31
Machinery & Engineering .33 .24 - - .57
Real Estate .56 - - - .56
Energy Sources .40 - - - .40
Food & Household Products .32 - - - .32
Industrials - - - .28 .28
Transportation: Shipping .23 - - - .23
Health & Personal Care .23 - - - .23
Electrical & Electronics - .22 - - .22
Textiles & Apparel .01 .06 - - .07
Miscellaneous .54 - - .96 1.50
------- ------- ------ ------ ------
56.95% 27.74% 1.60% 1.76% 88.05
======= ======= ====== ======
Short-Term Securities 16.06
Excess of liabilities over cash and receivables 4.11
------
Net Assets 100.00%
======
</TABLE>
- -----------------------
<TABLE>
<CAPTION>
TEN LARGEST EQUITY HOLDINGS Percent of Acquisition Market Value
Net Assets Cost of Holdings
(in thousands) 6/30/94
(in thousands)
<S> <C> <C> <C>
Telecomunicacoes Brasileiras 7.87% $2,195 $24,029
Cifra 5.57 1,327 17,014
Chilgener 4.67 7,197 14,277
Telefonos de Mexico 4.09 1,614 12,504
Brasmotor 3.24 3,048 9,891
Centrais Eletricas Brasileiras 3.23 6,714 9,865
Lojas Americanas 2.88 1,686 8,805
Kimberly-Clark de Mexico 2.85 1,443 8,715
CEMEX 2.74 1,754 8,357
Mesbla 2.63 3,199 8,042
------ -------- --------
39.77% $30,177 $121,499
====== ======== ========
</TABLE>
- ----------------------
EQUITY-TYPE SECURITIES
<TABLE>
<CAPTION>
(common and preferred stocks and convertible debentures) Number of Shares Market Percent
or Value of Net
Principal Amount (000) Assets
<S> <C> <C> <C>
ARGENTINA - 5.77%
Alpargatas SAIC/1/ 34,516 $25 .01%
Astra Compania Argentina de Petroleo SA 346,000 687 .23
Banco Frances del Rio de la Plata SA 10,000 224 .07
(American Depositary Receipts)/1/
Bemberg Industrial SA/1/ /2/ 3,000,000 3,000 .98
Hidroneuquen SA/1/ /2/ 2,500,000 2,509 .82
Ipako SA/1/ 6,363 10 -
IRSA Inversiones y Representaciones SA 31,500 109
IRSA Inversiones y Representaciones SA .33
(Global Depositary Receipts)/1/ /2/ 26,000 897
Nortel Inversora SA, Class A, preferred 211,560 2,052 .67
(American Depositary Receipts)/2/
Telecom Argentina STET-France Telecom SA, 11,000 581
Class B (American Depositary Shares)/2/
1.45
Telecom Argentina STET-France Telecom SA, Class B 741,000 3,848
Telefonica de Argentina SA, Class B 455,000 2,668
Telefonica de Argentina SA, Class B 1.03
(American Depositary Shares)/2/ 8,000 466
YPF SA, Class D (American Depositary Receipts) 22,400 535 .18
--------- ---------
17,611 5.77
--------- ---------
BRAZIL - 32.34%
Alpargatas, preferred nominative 1,407,700 189 .06
Aracruz Celulose SA, Class B, preferred nominative 6,600 12
.09
Aracruz Celulose SA (American Depositary Receipts)/1/ 25,500 261
Banco Bradesco SA, preferred nominative 546,963,872 2,964
Banco Bradesco SA, preferred nominative, 16,595,856 60 .99
rights, expire July 14, 1994/1/
Brasmotor SA, preferred nominative 41,276,787 9,891 3.24
Centrais Eletricas Brasileiras SA, Class B, 18,917,783 4,059
preferred nominative
Centrais Eletricas Brasileiras SA, 3.23
ordinary nominative 27,060,000 5,806
Cia Hering, preferred nominative 2,244,400 21 .01
COFAP - Companhia Fabricadora de Pecas, 133,019,600 1,935 .63
preferred nominative
Companhia Cervejaria Brahma, preferred nominative 13,461,641 2,962
1.00
Companhia Cervejaria Brahma, ordinary 356,537 76
nominative
Companhia Cimento Portland Itau, preferred nominative 7,610,000 2,048 .67
Companhia Energetica de Minas Gerais, 32,215,472 2,273 .75
preferred nominative
Companhia Metalurgica Barbara, 689,195,763 464 .15
preferred nominative/1/
Companhia Siderurgica Belgo-Mineira, 15,891,518 1,560
preferred nominative
Companhia Siderurgica Belgo-Mineira, .57
ordinary nominative 1,824,142 179
Companhia Siderurgica de Guanabara, 6,952 - -
preferred nominative
Companhia Suzano de Papel e Celulose, Class B, 5,100 17 .01
preferred nominative
Companhia Vale do Rio Doce, preferred nominative 44,304,400 4,366
1.49
Companhia Vale do Rio Doce, ordinary nominative 2,000,000 197
Ericsson do Brazil Comercio e Ind, preferred nominative 143,182,500 666 .22
GP Capital Partners, LP/1/ /2/ 3 3,000 .98
Industrias Klabin de Papel e Celulose SA, 3,015,084 3,563 1.17
preferred nominative
Lojas Americanas SA, preferred nominative 246,218,049 6,267
Lojas Americanas SA, ordinary nominative 102,625,600 2,538
Lojas Americanas SA, preferred nominative, 2.88
warrants, expire May 3, 1996/1/ 531,552 -
Mannesmann SA, ordinary nominative/1/ 2,655,000 763 .25
Mecanica Pesada, preferred nominative 190,000 722
.32
Mecanica Pesada, ordinary nominative 70,000 267
Mesbla SA, preferred nominative 32,349,795 6,352
Mesbla SA, Series 2, 13.25% convertible bond, 2.63
November 1, 1996 CR$10,270,000 1,690
Metal Leve Electronica Vehicular, preferred nominative 854,400 29 .01
Petrobras Distribuidora BR, preferred nominative 113,693,000 3,493 1.14
Petroleo Brasileiro SA, preferred nominative 666 - -
Ripasa SA Celulose e Papel, preferred nominative 566,020 136
Ripasa SA Celulose e Papel, 10.00% convertible bond .12
February 1, 1998/3/ CR$200,000 238
Telecomunicacoes Brasileiras SA, preferred nominative 638,452,090 24,029 7.87
Telefonica de Sao Paulo SA, preferred nominative 9,350,038 2,921 .96
Usinas Siderurgicas de Minas Gerais SA, 1,668,116,000 1,711 .56
preferred nominative
Vidracaria Santa Marina, ordinary nominative 308,700 1,037 .34
--------- ---------
98,762 32.34
--------- ---------
CHILE - 11.58%
Banco O'Higgins (American Depositary Receipts)/1/ 57,600 1,022 .34
Banmedica SA 2,362,500 554 .18
Cap SA 360,599 1,979 .65
Chilgener SA 2,307,510 14,277 4.67
Compania Cervecerias Unidas SA 185,000 4,001 1.31
(American Depositary Shares)
Compania de Telefonos de Chile SA 38,000 3,249 1.06
(American Depositary Receipts)
Empresa Nacional de Electricidad 8,040,000 5,927
Empresa Nacional de Electricidad, 1.94
rights, expire July 17, 1994/1/ 200,960 -
Sociedad Quimica y Minera de Chile SA, Class A 1,941,400 4,182
1.43
Sociedad Quimica y Minera de Chile SA, Class B 59,392 175
--------- ---------
35,366 11.58
--------- ---------
COLOMBIA - 2.75%
Banco de Colombia SA (Global Depositary Receipts)/1/ /2/ 65,000 683
Banco de Colombia SA 5.20% convertible bond .84
February 1, 1999/2/ $1,700,000 1,870
Cementos Diamante, SA 341,731 1,967 .64
Compania de Cemento Argos 39,240 418 .14
Corporacion Financiera del Valle SA, Class B 161,040 3,462 1.13
(American Depositary Receipts)/2/
--------- ---------
8,400 2.75
--------- ---------
MEXICO - 31.55%
Apasco, SA de CV, Class A 630,976 4,701 1.54
CEMEX, SA, Class A 67,500 434
2.74
CEMEX, SA, Class B 1,196,100 7,923
Cifra, SA de CV, Class A 390,000 1,001
Cifra, SA de CV, Class B 4,157,430 10,059 5.57
Cifra, SA de CV, Class C 2,554,142 5,954
Coca-Cola FEMSA, SA de CV, Class L 32,900 827 .27
(American Depositary Receipts)
Embotelladores del Valle de Anahuac, SA de CV, Class B 594,800 2,475 .81
Empresas La Moderna, SA de CV, 26,000 647 .21
ordinary participation certificates,
(American Depositary Receipts)
Fomento Economico Mexicano, SA de CV, Class B 433,200 1,790
Fomento Economico Mexicano, SA de CV, Class B .61
(American Depositary Shares)/2/ 17,200 71
Grupo Carso, SA de CV, Class A1/1/ 467,300 4,233 1.39
Grupo Casa Autrey, SA de CV 26,600 708 .23
(American Depositary Shares)
Grupo Embotellador de Mexico, SA de CV, 8,700 110
ordinary participation certificates
Grupo Embotellador de Mexico, SA de CV, .96
ordinary participation certificates
(Global Depositary Receipts) 112,000 2,828
Grupo Financiero Banamex Accival, SA de CV, Class B 220,000 1,175
Grupo Financiero Banamex Accival, SA de CV, Class C 460,000 2,932
Grupo Financiero Banamex Accival, SA de CV, Class L 29,000 180 1.69
Grupo Financiero Banamex Accival, SA de CV, $800,000 860
7.00% convertible debentures December 15, 1999
Grupo Financiero Bancomer, SA de CV, Class B 300,000 252
Grupo Financiero Bancomer, SA de CV, Class C 36,648 41
Grupo Financiero Bancomer, SA de CV, Class C 1.06
(American Depositary Shares)/2/ 128,063 2,929
Grupo Financiero Serfin, SA de CV, Class L, 130,800 2,305 .75
(American Depositary Shares)/1/
Grupo Herdez, SA de CV, Class A 133,395 155 .05
Grupo Industrial Maseca, SA de CV, Class B 22,500 503 .16
(American Depository Receipts)/1/ /2/
Grupo Radio Centro, SA de CV 19,700 483 .16
(American Depositary Receipts)
Grupo Televisa, SA, ordinary participation certificates 106,000 2,696
Grupo Televisa, SA, ordinary participation certificates 1.30
(Global Depositary Shares)/1/ 25,000 1,269
Internacional de Ceramica, SA de CV, Class B 55,200 304
Internacional de Ceramica, SA de CV, Class C .79
(American Depositary Shares)/1/ /2/ 80,000 2,100
Kimberly-Clark de Mexico, SA de CV, Class A 400,000 7,412
2.85
Kimberly-Clark de Mexico, SA de CV, Class B 70,000 1,303
Panamerican Beverages, Inc., Class A/1/ 157,000 3,788 1.24
Telefonos de Mexico, SA de CV, Class A 1,650,000 4,616
Telefonos de Mexico, SA de CV, Class L 2,475,000 6,938
Telefonos de Mexico, SA de CV, Class L, 4.09
(American Depositary Receipts) 17,000 950
Tolmex, SA de CV, Class B2 593,000 6,002
Tolmex, SA de CV, Variable Capital, Class B 1.97
(American Depositary Receipts)/1/ 116 12
Transportacion Maritima Mexicana, SA de CV, Class A 102,800 720 .24
(American Depositary Receipts)
Tubos de Acero de Mexico, SA/1/ 151,000 874
Tubos de Acero de Mexico, SA 279,000 1,569 .87
(American Depositary Receipts)/1/
Tubos de Acero de Mexico, SA $250,000 226
7.50% convertible Eurobond June 12, 1997
--------- ---------
96,355 31.55
--------- ---------
PERU - 0.41%
Banco de Credito del Peru 692,087 1,264 .41
--------- ---------
PHILIPPINES - 0.58%
Ayala Land Inc., Class B 675,000 693 .23
Philippine Long Distance Telephone Co. 30,000 1,027 .33
(Global Depositary Receipts)/2/
Philippine National Bank 3,620 59 .02
--------- ---------
1,779 .58
--------- ---------
PORTUGAL - 0.31%
Corticeira Amorim - Sociedade Gestora de Participacoes 68,000 955 .31
Socais, SA
--------- ---------
UNITED STATES - 0.09%
Atlantic Tele-Network, Inc./1/ 36,700 275 .09
--------- ---------
VENEZUELA - 0.37%
Fabrica Nacional de Cementos SACA 4,098,800 461 .15%
Mavesa SA (American Depositary Receipts)/2/ 58,933 295 .10
Venezolana de Cementos, SACA, Class A 157,500 229
.08
Venezolana de Cementos, SACA, Class B 22,206 22
Venezolana de Prerreducidos Caroni CA 19,000 138 .04
(Global Depositary Shares)/2/
--------- ---------
1,145 .37
MISCELLANEOUS - 0.54%
Stocks in initial period of acquisition 1,652 .54
--------- ---------
TOTAL EQUITY-TYPE SECURITIES (cost: $124,543,000) 263,564 86.29
--------- ---------
BONDS AND NOTES Principal
Amount
(000)
ARGENTINA - 0.56%
Republic of Argentina Bocon 4.312% April 1, 2001/3/ $500 335 .11
Republic of Argentina Eurobond Series L, 5.00% 500 357 .12
March 31, 2005/3/
Petrolera Argentina 11.00% February 9, 1998/2/ 1,000 1,025 .33
--------- ---------
1,717 .56
--------- ---------
BRAZIL - 0.28%
Aracruz Celulose SA 9.00% Eurobond July 22, 1998 150 136 .04
Klabin Fabricadora de Papel e Celulose SA 750 725 .24
11.00% guaranteed notes due April 15, 1998/2/
--------- ---------
861 .28
--------- ---------
MEXICO - 0.52%
United Mexican States Collateralized Eurobond, Series B 2,500 1,591 .52
6.25% December 31, 2019
--------- ---------
PERU - 0.21%
Peru/Citicorp Participation Agreement 1,250 625 .21
7.625% exchangeable March 31, 1995
--------- ---------
VENEZUELA - 0.19%
Venezolana de Cementos, SACA 9.25% 600 573 .19
Eurobond November 22, 1996
--------- ---------
TOTAL BONDS AND NOTES (cost: $5,022,000) 5,367 1.76
--------- ---------
SHORT-TERM SECURITIES Principal Market Percent
Amount Value of Net
(000) (000) Assets
CORPORATE SHORT-TERM NOTES - 9.79%
American Express Credit Co. 4.31% due 7/5/94 $4,100 $4,098 1.34%
Associates Corp. of North America 4.35% due 7/1/94 4,450 4,449 1.46
Daimler-Benz North America Corp. 4.35% due 7/27/94 5,000 4,984 1.63
Procter & Gamble Co. 4.30% due 7/7/94 8,000 7,993 2.62
Sara Lee Corp. 4.34% due 7/20/94 3,400 3,392 1.11
Toronto Dominion Holdings, Inc. 4.35% due 7/29/94 5,000 4,982 1.63
--------- ---------
29,898 9.79
--------- ---------
FEDERAL AGENCY DISCOUNT NOTES - 4.90%
Federal Farm Credit Bank 4.20-4.36% due 7/6-7/13/94 10,000 9,989 3.27
Federal National Mortgage Assn. 4.21% due 8/8/94 5,000 4,977 1.63
--------- ---------
14,966 4.90
--------- ---------
NON-U.S. CURRENCY - 1.37%
Chilean peso CHP1,751,258 4,192 1.37
---------- ---------
TOTAL SHORT-TERM SECURITIES (cost: $49,004,000) 49,056 16.06
--------- ---------
TOTAL INVESTMENT SECURITIES (cost: $178,569,000) 317,987 104.11
Excess of liabilities over cash and receivables 12,561 4.11
--------- ---------
NET ASSETS $305,426 100.00%
========= =========
</TABLE>
/1/ Non-income producing securities.
/2/ Purchased in a private placement transaction; resale to the public may
require registration.
/3/ Coupon rate may change periodically.
Non-U.S. currency symbols:
CR$ - Brazilian cruzeiro real
CHP - Chilean peso
See Notes to Financial Statements
EQUITY-TYPE SECURITIES ADDED TO THE
PORTFOLIO SINCE DECEMBER 31, 1993
- ------------------------------------
Astra Compania Argentina de Petroleo
Banco de Colombia
Banco Frances del Rio de la Plata
Banco O'Higgins
Embotelladores del Valle de Anahuac
Empresas La Moderna
Fabrica Nacional de Cementos
GP Capital Partners
Grupo Casa Autrey
Grupo Radio Centro
Mavesa
Panamerican Beverages
Petrobras Distribuidora BR
Venezolana de Cementos
EQUITY-TYPE SECURITIES ELIMINATED FROM THE
PORTFOLIO SINCE DECEMBER 31, 1993
- ------------------------------------------
Sears Roebuck de Mexico
NEW WORLD INVESTMENT FUND
FINANCIAL STATEMENTS
<TABLE>
<CAPTION>
STATEMENT OF ASSETS AND LIABILITIES (DOLLARS IN THOUSANDS)
AS JUNE 30, 1994
<S> <C> <C>
ASSETS:
Investment securities at market $317,987
(cost $178,569)
Cash 237
Receivables for -
Sales of investments $292
Dividends and accrued interest 437 729
---------- ----------
318,953
----------
LIABILITIES:
Non-U.S. taxes payable 6,087
Payables for -
Purchases of investments 7,042
Management services 255
Accrued expenses 143 7,440
---------- ----------
13,527
----------
NET ASSETS AT JUNE 30, 1994 -
Equivalent to $31.27 per share $305,426
on 9,768,730 shares of beneficial
interest issued and outstanding,
par value $0.001 per share;
unlimited shares authorized
==========
STATEMENT OF OPERATIONS FOR THE YEAR (DOLLARS IN THOUSANDS)
ENDED JUNE 30, 1994
INVESTMENT INCOME:
Income:
Dividends $4,123
Interest 4,173 $8,296
----------
Expenses:
Management services fee 2,862
Custodian fee 743
Auditing and legal fees 104
Organization expense 32
Taxes other than federal 11
income tax
Reports to shareholders 6
Other expenses 86 3,844
---------- ----------
Income before non-U.S. taxes 4,452
Non-U.S. taxes (396)
----------
Net investment income 4,056
----------
REALIZED GAIN AND UNREALIZED
APPRECIATION ON INVESTMENTS:
Realized gain before 46,311
non-U.S. taxes
Non-U.S. taxes (1,143)
----------
Net realized gain 45,168
Net unrealized appreciation:
Beginning of year 110,648
End of year 139,418
----------
Net unrealized appreciation 28,770
Non-U.S. taxes (2,767) 26,003
---------- ----------
Net realized gain and unrealized 71,171
appreciation on investments
----------
NET INCREASE IN NET ASSETS RESULTING $75,227
FROM OPERATIONS
==========
STATEMENT OF CHANGES IN NET ASSETS (DOLLARS IN THOUSANDS)
Year Ended June 30
1994 1993
---------- ----------
OPERATIONS:
Net investment income $4,056 $3,146
Net realized gain on investments 45,168 11,601
Net unrealized appreciation 26,003 36,910
on investments
---------- ----------
Net increase in net assets 75,227 51,657
resulting from operations
---------- ----------
DIVIDENDS AND DISTRIBUTIONS PAID
TO SHAREHOLDERS:
Dividends from net (1,837) -
investment income
Distributions from net realized (19,590) (16,665)
gain on investments
---------- ----------
Total dividends and (21,427) (16,665)
distributions
---------- ----------
CAPITAL SHARE TRANSACTIONS:
Proceeds from shares sold: 23,572 -
738,845 shares
Proceeds from shares issued in 19,991 14,962
reinvestment of net investment
income dividends and
distributions of net realized
gain on investments:
671,062 and 781,689 shares,
respectively
Cost of shares repurchased: (3,613) (18,096)
144,495 and 848,669
shares, respectively
---------- ----------
Net increase (decrease) in 39,950 (3,134)
net assets resulting from
capital share transactions
---------- ----------
TOTAL INCREASE IN NET ASSETS 93,750 31,858
NET ASSETS:
Beginning of year 211,676 179,818
---------- ----------
End of year (including $305,426 $211,676
excess of distributions
over net investment income:
$2,448 and $1,500,
respectively)
========== ==========
</TABLE>
See Notes to Financial Statements
NOTES TO FINANCIAL STATEMENTS
1. New World Investment Fund (the "fund") is registered under the Investment
Company Act of 1940 as a closed-end, non-diversified management investment
company. The following paragraphs summarize the significant accounting
policies consistently followed by the fund in the preparation of its financial
statements:
Equity-type securities are stated at market value based upon closing sales
prices reported on recognized securities exchanges on the last business day of
the year or, for listed securities having no sales reported and for unlisted
securities, upon last reported bid prices on that date. In cases where
securities are traded on more than one exchange, the securities are valued on
the exchange designated by or under the authority of the Board of Trustees as
the primary market. Bonds and notes are valued at prices obtained from a
bond-pricing service provided by a major dealer in bonds, when such prices are
available; however, in circumstances where the investment adviser deems it
appropriate to do so, such securities will be valued at the mean of their
representative quoted bid and asked prices or, if such prices are not
available, at the mean of such prices for securities of comparable maturity,
quality, and type. Short-term securities with original or remaining maturities
in excess of 60 days are valued at the mean of their quoted bid and asked
prices. Short-term securities with 60 days or less to maturity are amortized
to maturity based on their cost to the fund if acquired within 60 days of
maturity or, if already held by the fund on the 60th day, based on the value
determined on the 61st day. Securities for which market quotations are not
readily available (including restricted securities which are subject to
limitations as to their sale), or which are not deemed to represent market
value, are valued at fair value as determined in good faith by the Valuation
Committee of the Board of Trustees.
As is customary in the mutual fund industry, securities transactions are
accounted for on the date the securities are purchased or sold. Realized gains
and losses from securities transactions are reported on an identified cost
basis. Dividend and interest income is reported on the accrual basis.
Discounts on securities purchased are amortized over the life of the respective
securities. Distributions to shareholders are recorded on the ex-dividend
date.
Investment securities, cash balances, and other assets and liabilities
denominated in non-U.S. currencies are recorded in the financial statements
after translation into U.S. dollars utilizing rates of exchange on the last
business day of the year. Purchases and sales of investment securities,
dividend and interest income, and certain expenses are calculated at the rates
of exchange prevailing on the respective dates of such transactions.
Gains and losses that arise from changes in exchange rates are not segregated
from gains and losses that arise from changes in market prices of investments.
The effects on net investment income arising from changes in exchange rates are
also not segregated.
Pursuant to the custodian agreement, the fund receives credits against its
custodian fee for imputed interest on certain balances with the custodian bank.
The custodian fee of $743,000 includes $21,000 that was paid by these credits
rather than in cash.
During the current year, the fund adopted Statement of Position 93-2
"Determination, Disclosure, and Financial Statement Presentation of Income,
Capital Gain, and Return of Capital Distributions by Investment Companies."
Accordingly, book and tax basis differences relating to shareholder
distributions are reclassified to or from additional paid-in capital. As of
June 30, 1993, the cumulative effect of such differences totaling $5,273,000
and $5,170,000 was reclassified from undistributed net investment income to
additional paid-in capital, and from additional paid-in capital to
undistributed net realized gain, respectively. During the year ended June 30,
1994, the fund reclassified $3,167,000 and $3,147,000 from undistributed net
investment income to additional paid-in capital, and from additional paid-in
capital to undistributed net realized gain, respectively. Net investment
income, net realized gain and net assets were not affected by this change.
2. Investing in securities of issuers in a variety of developing countries
involves certain special investment risks, which may include investment and
repatriation restrictions, currency volatility, government involvement in the
private sector, limited investor information, shallow securities markets,
certain local tax law considerations, and limited regulation of the securities
markets.
Dividend income, and interest income, net realized gains and net unrealized
gain, of the fund derived in Chile are subject to certain non-U.S. taxes at
rates of 25% and 36%. The fund provides for such non-U.S. taxes on investment
income, net realized gains, and net unrealized gains.
3. It is the fund's policy to continue to comply with the requirements of the
Internal Revenue Code applicable to regulated investment companies and to
distribute all of its net taxable income, including any net realized gain on
investments, to its shareholders. Therefore, no federal income tax provision
is required.
As of June 30, 1994, net unrealized appreciation on investments for book and
federal income tax purposes aggregated $134,424,000, net of accumulated
deferred taxes totaling $4,994,000 on net unrealized appreciation of Chilean
securities, of which $139,960,000 related to appreciated securities and
$5,536,000 related to depreciated securities. There was no difference between
book and tax ealized gains on securities transactions for the year ended June
30, 1994. The cost of portfolio securities for book and federal income tax
purposes was $178,569,000 at June 30, 1994.
4. The fee of $2,862,000 for management services was paid pursuant to an
agreement with Capital International, Inc. (CII), with which certain officers
and Trustees of the fund are affiliated. The Investment Advisory and Service
Agreement provides for monthly fees, accrued weekly, based on an annual rate of
1.00% on the first $400 million of the fund's net assets, plus 0.80% of such
assets in excess of $400 million. CII is owned by Capital Group International,
Inc., which is a wholly owned subsidiary of The Capital Group, Inc.
5. As of June 30, 1994, accumulated undistributed net realized gain on
investments was $40,998,000 and additional paid-in capital was $132,423,000.
The fund made purchases and sales of investment securities, excluding
short-term securities, of $57,948,000 and $74,926,000, respectively, during the
year ended June 30, 1994.
Dividend and interest income is recorded net of non-U.S. taxes paid. For the
year ended June 30, 1994, such non-U.S. taxes were $429,000.
PER-SHARE DATA AND RATIOS
<TABLE>
<CAPTION>
Year ended June 30
1994 1993 1992 1991 1990
<S> <C> <C> <C> <C> <C>
Net Asset Value, Beginning of Year $24.89 $20.98 $17.79 $12.02 $10.10
------ ------ ------ ------ ------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income .50 .37 .41 .61 .90
Net realized and unrealized gains on 8.83 5.59 4.38 6.45 2.05
investments before non-U.S. taxes
Non-U.S. taxes (.50) (.01) (.20) (.40) (.01)
------ ------ ------ ------ ------
Total income from investment operations 8.83 5.95 4.59 6.66 2.94
------ ------ ------ ------ ------
LESS DISTRIBUTIONS:
Dividends from net investment income (.21) - (.46) (.52) (.92)
Distributions from net realized gain (2.24) (2.04) (.94) (.37) (.10)
------ ------ ------ ------ ------
Total distributions (2.45) (2.04) (1.40) (.89) (1.02)
------ ------ ------ ------ ------
Net Asset Value, End of Year $31.27 $24.89 $20.98 $17.79 $12.02
====== ====== ====== ====== ======
Total Return 35.97% 31.28% 26.57% 58.82% 30.12%
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of year (in millions) $305 $212 $180 $129 $81
Ratio of expenses to average net assets 1.36% 1.40% 1.53% 1.67% 1.73%
Ratio of expenses and non-U.S. 1.50% 1.62% 1.71% 1.87% 1.73%
taxes to average net assets
Ratio of net income to average net assets 1.43% 1.70% 1.92% 4.59% 8.19%
Portfolio turnover rate 21.47% 17.23% 21.66% 23.25% 50.93%
</TABLE>
- -------------------
REPORT OF INDEPENDENT ACCOUNTS
TO THE BOARD OF TRUSTEES AND SHAREHOLDERS OF NEW WORLD INVESTMENT FUND
In our opinion, the accompanying statement of assets and liabilities, including
the investment portfolio, and the related statements of operations and of
changes in net assets and the per-share data and ratios present fairly, in all
material respects, the financial position of New World Investment Fund (the
"Fund") at June 30, 1994, the results of its operations, the changes in its net
assets, and the per-share data and ratios for the periods indicated, in
conformity with generally accepted accounting principles. These financial
statements and per-share data and ratios (hereafter referred to as "financial
statements") are the responsibility of the Fund's management; our
responsibility is to express an opinion on these financial statements based
upon our audits. We conducted our audits of these financial statements in
accordance with generally accepted auditing standards which require that we
plan and perform the audit to obtain reasonable assurance about whether the
financial statements are free of material misstatement. An audit includes
examining, on a test basis, evidence supporting the amounts and disclosures in
the financial statements, assessing the accounting principles used and
significant estimates made by management, and evaluating the overall financial
statement presentation. We believe that our audits, which included
confirmation of securities at June 30, 1994 by correspondence with the
custodian and brokers and the application of alternative auditing procedures
where confirmations from brokers were not received, provide a reasonable basis
for the opinion expressed above.
PRICE WATERHOUSE LLP
Los Angeles, California
August 5, 1994
TAX INFORMATION (UNAUDITED)
The fund makes an election under the Internal Revenue Code Section 853 to pass
through foreign taxes paid by the fund to its shareholders. The total amount
of foreign taxes passed through to shareholders for the year ended June 30,
1994 totals $0.01555 per share.
None of the distributions paid by the fund from investment income earned in
the year ended June 30, 1994, qualified for the corporate dividends-received
deduction nor were derived from interest on direct U.S. Treasury obligations.
This information is given to meet certain requirements of the Internal Revenue
Code and should not be used by shareholders for preparing their income tax
returns. For tax return preparation purposes, please refer to the annual
information on the taxability of distributions supplied by the fund.
NEW WORLD INVESTMENT FUND
INVESTMENT PORTFOLIO, JUNE 30, 1993
<TABLE>
<CAPTION>
Equity-Type Securities
Common Preferred Convertible Percent of
INDUSTRY DIVERSIFICATION Stocks Stocks Bonds Bonds Net Assets
<S> <C> <C> <C> <C> <C>
Telecommunications 9.85% 19.02% -% -% 28.87%
Merchandising 8.49 2.80 - - 11.29
Building Materials & Components 7.99 1.71 .14 - 9.84
Utilities: Electric, Gas & Water 4.69 1.96 - - 6.65
Forest Products & Paper 3.49 2.34 - - 5.83
Beverages & Tobacco 4.14 .90 - - 5.04
Metals-Steel 1.55 3.32 .11 - 4.98
Chemicals 3.07 - - - 3.07
Energy Sources .39 2.59 - - 2.98
Financial Services 2.95 - - - 2.95
Banking 1.63 1.23 - - 2.86
Appliances & Household Durables - 2.64 - - 2.64
Transportation - Shipping 2.37 - - - 2.37
Broadcasting & Publishing 1.72 - - - 1.72
Multi-Industry 1.48 - - - 1.48
Industrial Components .49 .94 - - 1.43
Machinery & Engineering .33 .19 - - .52
Food & Household Products .44 - - - .44
Electrical & Electronics - .38 - - .38
Real Estate .21 - - - .21
Textiles & Apparel .01 .07 - - .08
Business & Public Services .07 - - - .07
Miscellaneous .09 - - 2.82 2.91
------ ------ ------ ------ ------
55.45% 40.09% .25% 2.82% 98.61
====== ====== ====== ======
Short-Term Securities 2.70
Excess of liabilities over cash, 1.31
prepaid organization expense and
receivables
------
Net Assets 100.00%
=======
</TABLE>
***********
<TABLE>
<CAPTION>
Market Value
Acquisition of Holdings
Percent of Cost 6/30/93
TEN LARGEST EQUITY HOLDINGS Net Assets (in thousands) (in thousands)
- ---------------- ---------- -------------- --------------
<S> <C> <C> <C>
Telecomunicacoes Brasileiras 13.15% $2,954 $27,831
Cifra 6.89 1,354 14,577
Telefonica de Sao Paulo 5.33 2,193 11,279
Telefonos de Mexico 4.91 1,490 10,389
Kimberly-Clark de Mexico 3.36 2,010 7,123
Sociedad Quimica y Minera 3.07 2,762 6,498
CEMEX 2.67 1,396 5,663
Brasmotor 2.64 3,048 5,584
Petroleo Brasileiro 2.59 1,757 5,486
Transportacion Maritima Mexicana 2.37 2,914 5,022
------ ------- -------
46.98% $21,878 $99,452
====== ======= =======
</TABLE>
***********
<TABLE>
<CAPTION>
Number of Shares Market Percent
EQUITY-TYPE SECURITIES or Value of Net
(common and preferred stocks and convertible debentures) Principal Amount (000) Assets
- ------------------------------------------------- ----------------- --------- ---------
<S> <C> <C> <C>
ARGENTINA - 3.64%
Alpargatas SAIC 34,516 $25 .01%
Ipako SA/1/ 6,363 8 .01
Nortel Inversora SA, Class A, preferred
(American Depositary Receipts)/2/ 160,000 1,150 .54
Telecom Argentina STET-France Telecom SA, Class B 899,000 2,820
Telecom Argentina STET-France Telecom SA, Class B 1.51
(American Depositary Shares)/2/ 12,500 384
Telefonica de Argentina SA, Class B 565,000 2,185
Telefonica de Argentina SA, Class B 1.17
(American Depositary Shares)/2/ 8,000 300
YPF Sociedad Anonima, Class D
(American Depositary Receipts)/1/ 38,000 827 .40
----- -----
7,699 3.64
----- -----
BRAZIL - 41.97%
Alpargatas, preferred nominative 1,407,700 122 .06
Aracruz Celulose SA, Class B, preferred nominative 4,400 8
Aracruz Celulose SA, Class B .08
(American Depositary Receipts)/1/ 17,000 157
Belgo Mineira, preferred nominative 12,319,680 3,152
1.62
Belgo Mineira, ordinary nominative 801,561 268
Bradesco SA, preferred nominative 121,114,532 2,564
Bradesco SA, preferred nominative, 1.23
rights, expire July 26, 1993 4,016,476 33
Brasmotor, preferred nominative 41,276,787 5,584 2.64
Cervejaria Brahma, preferred nominative 11,785,333 1,909
.93
Cervejaria Brahma, ordinary nominative 324,999 67
CIA Hering, preferred nominative 2,244,400 12 .01
Cimento Itau, preferred nominative 11,150,000 2,771 1.31
Cofap, preferred nominative 133,019,600 1,959 .93
Companhia Energetica de Minas Gerais,
preferred nominative 1,225,388,784 1,150 .54
Companhia Metalurgica Barbara, preferred nominative/1/ 689,195,763 850 .40
Companhia Siderurgica Da Guanabara,
preferred nominative 5,348 - -
Electrobras Centrais Electricas Brasileiras,
Class B, preferred nominative 23,617,783 2,999
Electrobras Centrais Electricas Brasileiras, 1.61
ordinary nominative 2,800,000 405
Ericsson de Brazil SA, preferred nominative 143,182,500 804 .38
Industrias Klabin de Papel e Celulose SA,
preferred nominative 2,044,125 2,498 1.18
Lojas Americanas SA, preferred nominative 2,436,037 2,421
Lojas Americanas SA, ordinary nominative 2,094,400 2,159
Lojas Americanas SA, preferred nominative, 2.17
warrants, expire May 3, 1996 531,552 20
Mannesmann SA, ordinary nominative/1/ 663,750 574 .27
Mecanica Pesada, preferred nominative 190,000 402
.25
Mecanica Pesada, ordinary nominative 70,000 129
Mesbla SA, preferred nominative 10,783,265 3,503 1.65
Metal Leve Electronica Vehicular, preferred nominative 854,400 39 .02
Papel Simao, preferred nominative 88,042,800 2,350 1.11
Petroleo Brasileiro SA, preferred nominative 903,200 5,486 2.59
Ripasa SA, Celulose e Papel,
10.00% convertible bond February 2, 1998 CR200,000 106
.09
Ripasa SA, Celulose e Papel, preferred nominative 566,020 89
Suzano, Class B, preferred nominative 5,100 16 .01
Telecomunicacoes Brasileiras SA, preferred nominative 859,122,090 27,831 13.15
Telefonica de Sao Paulo SA, preferred nominative 51,931,038 11,279 5.33
Usiminas, preferred nominative 717,500,000 367 .17
Vale do Rio Doce, preferred nominative 51,622,400 3,516
1.75
Vale do Rio Doce, ordinary nominative 2,500,000 198
Vidracaria Santa Marina, ordinary nominative 308,700 1,034 .49
------ ------
88,831 41.97
------ ------
CHILE - 11.35%
Banmedica SA 562,500 139 .07
Cap SA de Inversiones 360,599 964 .46
Chilgeneracion SA 1,438,392 4,522 2.14
Compania Cervecerias SA
(American Depository Shares) 185,000 3,330 1.57
Compania de Telefonos de Chile SA
(American Depositary Receipts) 43,100 2,861 1.35
Empresa Nacional de Electricidad SA 13,910,000 5,009 2.37
Empresa Nacional de Telecomunicaciones SA 121,234 708 .32
Sociedad Quimica y Minera de Chile SA 2,793,019 6,498 3.07
------ ------
24,031 11.35
------ ------
COLOMBIA - 0.96%
Corporacion Financiera del Valle SA, Class B
(American Depository Receipts)/2/ 150,000 2,025 .96
------ ------
MEXICO - 36.54%
CEMEX SA, Class B 354,400 5,663 2.67
Cementos Apasco SA de CV of Subsidiarias, Class A 630,976 3,381 1.60
Cifra SA de CV, Class A 530,000 1,063
Cifra SA de CV, Class B 4,157,430 8,638
6.89
Cifra SA de CV, Class C 2,554,142 4,876
Embotelladora del Valle de Anahuac SA de CV, Class B 356,000 777 .37
Fomento Economico Mexicano SA de CV, Class B 725,000 2,768 1.31
Grupo Carso SA de CV, Class A1 467,300 2,557 1.21
Grupo Cementos de Chihuahua SA de CV, Class B 500,000 401 .19
Grupo Embotellador SA de CV, Class B,
(American Depositary Receipts)/2/ 94,000 1,810 .85
Grupo Financiero Banamex Accival SA de CV, Class B 120,000 591
1.46
Grupo Financiero Banamex Accival SA de CV, Class C 460,000 2,502
Grupo Financiero Bancomer SA de CV, Class C 36,648 59
Grupo Financiero Bancomer SA de CV, Class C 1.99
(American Depositary Shares)/2/ 128,063 4,162
Grupo Herdez SA de CV, Class A 476,538 443
.44
Grupo Herdez SA de CV, Class B 476,538 479
Grupo Televisa SA de CV, Series L 128,000 2,374
Grupo Televisa SA de CV, Series L 1.71
(American Depositary Receipts)/2/ 34,000 1,258
Internacional de Ceramica SA de CV, Class B 65,000 416
Internacional de Ceramica SA de CV, Class C 1.31
(American Depositary Shares)/1/ /2/ 80,000 2,360
Kimberly-Clark de Mexico SA de CV, Class A 585,000 6,382
3.36
Kimberly-Clark de Mexico SA de CV, Class B 70,000 741
Sears Roebuck de Mexico SA de CV, Series B1
(American Depositary Receipts)/1/ /2/ 70,000 1,225 .58
Sunbelt Tolmex 13.54% convertible floating rate note
June 14, 2002 /2/ /3/ $200,000 290 .14
Telefonos de Mexico SA de CV, Class A 1,650,000 3,891
Telefonos de Mexico SA de CV, Class L 2,475,000 5,797
4.91
Telefonos de Mexico SA de CV, Class L
(American Depositary Receipts) 15,000 701
Tolmex SA de CV, Class B2 593,000 4,700 2.22
Transportacion Maritima Mexicana SA de CV, Class A
(American Depositary Receipts) 79,500 676
Transportacion Maritima Mexicana SA de CV, Class L 2.37
(American Depositary Receipts) 451,500 4,346
Tubos de Acero de Mexico SA/1/ 151,000 640
Tubos de Acero de Mexico SA
(American Depositary Receipts)/1/ 279,000 1,151 .96
Tubos de Acero de Mexico SA 7.50% convertible
Eurobond June 12, 1997 $250,000 236
------ ------
77,354 36.54
PHILIPPINES - 0.71%
Ayala Land Inc., Class B 450,000 438 .20
Philippine Long Distance Telephone Co., preferred
(Global Depositary Receipts)/2/ 30,000 716 .34
Philippine National Bank Ltd. 36,200 362 .17
------ ------
1,516 .71
------ ------
PORTUGAL - 0.27%
Corticeira Amorim SA 68,000 570 .27
------ ------
UNITED STATES - 0.23%
Atlantic Tele-Network, Inc. 36,700 496 .23
------ ------
VENEZUELA - 0.03%
Venezolana de Prerreducidos Caroni CA
(Global Depositary Shares)/2/ 10,000 56 .03
------ ------
MISCELLANEOUS - 0.09%
Stocks in initial period of acquisition 195 .09
------ ------
TOTAL EQUITY-TYPE SECURITIES (cost: $93,239,000) 202,773 95.79
-------- ------
BONDS Principal Market Percent
Amount Value of Net
(000) (000) Assets
---------- -------- ------
ARGENTINA - 1.26%
Republic of Argentina 4% Series L
floating rate note March 31, 2023/2/ /3/ $2,000 $1,060 .50%
Republic of Argentina Participation Certificates
0% November 6, 2017 811 594 .28
Petrolera Argentina 11.00% February 9, 1998/2/ 1,000 1,021 .48
------ ------
2,675 1.26
------ ------
BRAZIL - 0.37%
Klabin Fabricadora de Papel e Celulose SA
11.00% guaranteed notes due April 15, 1998/2/ 750 778 .37
------ ------
MEXICO - 0.87%
United Mexican States Collateralized Eurobond
6.25% December 31, 2019 2,500 1,825 .87
------ ------
VENEZUELA - 0.32%
Venezuela Front Loaded Interest Floating Rate
Reduction Eurobond 6.00% March 31, 2007/3/ 1,000 679 .32
------ ------
TOTAL BONDS (cost: $4,810,000) 5,957 2.82
------ ------
SHORT-TERM SECURITIES
CORPORATE SHORT-TERM NOTES - 2.03%
General Electric Capital Corp. 3.45% due 7/1/93 4,300 4,299 2.03
------ ------
NON-U.S. CURRENCY - 0.67%
Brazilian cruzeiro CR1,679,477 31 .01
Chilean peso CHP559,139 1,384 .66
------ ------
1,415 .67
------ ------
TOTAL SHORT-TERM SECURITIES (cost: $5,747,000) 5,714 2.70
------ ------
TOTAL INVESTMENT SECURITIES (cost: $103,796,000) 214,444 101.31
Excess of liabilities over cash, prepaid organization
expense and receivables 2,768 1.31
------ ------
NET ASSETS $211,676 100.00%
========= ========
</TABLE>
/1/ Non-income-producing securities.
/2/ Purchased in a private placement transaction; resale to the public may
require registration.
/3/ Coupon rate may change periodically.
Non-U.S. currency symbols:
CR - Brazilian cruzeiro
CHP- Chilean peso
See Notes to Financial Statements
- ------------------------------------
Equity-type securities added to the
portfolio since December 31, 1992
- ------------------------------------
Corporacion Financiera del Valle
Embotelladora del Valle de Anahuac
Mecanica Pesada
Venezolana de Prerreducidos Caroni
YPF Sociedad Anonima
- -------------------------------------------
Equity-type securities eliminated from the
portfolio since December 31, 1992
- -------------------------------------------
Companhia Portuguesa Radio Marconi
Companhia Souza Cruz Industria e Comercio
Copene, Petroquimica do Nordeste
Empresa Minera Mantos Blancos
Grupo Industrial Bimbo
Grupo Industrial Maseca
Teleindustria Ericsson
Vitro
NEW WORLD INVESTMENT FUND
FINANCIAL STATEMENTS
Statement of Assets and Liabilites
at June 30, 1993
<TABLE>
<CAPTION>
<S> <C> <C>
(dollars in thousands)
Assets:
Investment securities at market
(cost: $103,796) $214,444
Cash 117
Prepaid organization expense 32
Receivables for --
Sales of investments $331
Dividends and accrued interest 1,001 1,332
------ ------
215,925
--------
Liabilities:
Non-U.S. taxes payable 2,925
Payables for --
Purchases of investments 917
Management services 171
Accrued expenses 236 1,324
------ ------
4,249
------
Net Assets at June 30, 1993 -
Equivalent to $24.89 per share
on 8,503,318 shares of $0.001 par
value capital stock outstanding
(unlimited shares authorized) $211,676
=========
Statement of Operations for the Year Ended
June 30, 1993 (dollars in thousands)
Investment Income:
Income:
Dividends $4,306
Interest 1,828 $6,134
Expenses: -------
Management services fee 1,838
Custodian fee 450
Consultants' and Advisory
Board fees 56
Auditing and legal fees 53
Organization expense 35
Registration statement and
prospectus 28
Taxes other than federal
income tax 12
Reports to shareholders 2
Other expenses 120 2,594
------ ------
Income before non-U.S. taxes 3,540
Non-U.S. taxes (394)
------
Net investment income 3,146
------
Realized Gain and Unrealized
Appreciation on Investments:
Realized gain before
non-U.S. taxes 12,629
Non-U.S. taxes (1,028)
-------
Net realized gain 11,601
Net unrealized appreciation:
Beginning of year 74,678
End of year 110,648
--------
Net unrealized appreciation 35,970
Decrease in unrealized
non-U.S. taxes 940 36,910
-------- --------
Net realized gain and unrealized
appreciation on investments 48,511
--------
Net Increase in Net Assets Resulting
from Operations $51,657
=========
Statement of Changes in Net Assets (dollars in thousands)
Year Ended June 30
1993 1992
Operations:
Net investment income $3,146 $3,475
Net realized gain on
investments 11,601 14,780
Net unrealized appreciation
on investments 36,910 23,436
-------- --------
Net increase in net assets
resulting from
operations 51,657 41,691
-------- --------
Dividends and Distributions
Paid to Shareholders:
Dividends from net
investment income -- (3,734)
Distributions from net realized
gain on investments (16,665) (7,771)
-------- --------
Total dividends and
distributions (16,665) (11,505)
-------- --------
Capital Share Transactions:
Proceeds from shares sold:
1,484,734 shares -- 30,100
Proceeds from shares issued in
reinvestment of net invest-
ment income dividends and
distributions of net realized
gain on investments:
781,689 and 510,219
shares, respectively 14,962 9,860
Cost of shares repurchased:
848,669 and 672,292
shares, respectively (18,096) (19,241)
-------- --------
Net increase (decrease) in
net assets resulting from
capital share transactions (3,134) 20,719
-------- --------
Total Increase in Net Assets 31,858 50,905
Net Assets:
Beginning of year 179,818 128,913
-------- --------
End of year (including
undistributed net invest-
ment income: $3,773 and
$627, respectively) $211,676 $179,818
======== ========
</TABLE>
See Notes to Financial Statements
NOTES TO FINANCIAL STATEMENTS
1. New World Investment Fund (the "fund") is registered under the Investment
Company Act of 1940 as a closed-end, non-diversified management investment
company. The following paragraphs summarized the significant accounting
policies consistently followed by the fund in the preparation of its financial
statements:
Investment securities are stated at market value based upon closing sales
prices reported on recognized securities exchanges on the last business day of
the year or, for listed securities having no sales reported and for unlisted
securities, upon last-reported bid prices on that date. Non-U.S. government
securities and short-term securities with original or remaining maturities in
excess of 60 days are valued at the mean of their quoted bid and asked prices.
Short-term securities with 60 days or less to maturity are amortized to
maturity based on their cost to the fund if acquired within 60 days of maturity
or, if already held by the fund on the 60th day, based on the value determined
on the 61st day. Securities for which quotations are not readily available are
valued at fair value as determined in good faith by the Valuation Committee of
the Board of Trustees.
As is customary in the mutual fund industry, securities transactions are
accounted for on the date the securities are purchased or sold. Realized gains
and losses from securities transactions are reported on an identified cost
basis. Dividend and interest income is reported on the accrual basis.
Discounts on securities purchased are amortized over the life of the respective
securities. Distributions to shareholders are recorded on the ex-dividend
date.
Investment securities, cash balances, and other assets and liabilities
denominated in non-U.S. currencies are recorded in the financial statements
after translation into U.S. dollars utilizing rates of exchange on the last
business day of the fiscal year. Purchases and sales of investment securities,
dividend and interest income, and certain expenses are calculated at the rates
of exchange prevailing on the respective dates of such transactions.
Gains and losses that arise from changes in exchange rates are not
segregated from gains and losses that arise from changes in market prices of
investments. The effects on net investment income arising from changes in
exchange rates are also not segregated.
Prepaid organization expense is amortized over the estimated period of
benefit, not to exceed five years from commencement of operations. In the
event that Capital International, Inc. (CII), the investment adviser, redeems
any of its original shares prior to the end of the five-year period, the
proceeds of the redemption payable with respect to such shares shall be reduced
by the pro rata share (based on the proportionate share of the original shares
redeemed to the total number of original shares outstanding at the time of such
redemption) of the unamortized prepaid organization expense as of the date of
such redemption. In the event that the fund liquidates prior to the end of the
five-year period, CII shall bear any unamortized prepaid organization
expenses.
2. Investing in securities of issuers in a variety of developing countries
involves certain special investment risks, which may include investment and
repatriation restrictions, currency volatility, government involvement in the
private sector, limited investor information, shallow securities markets,
certain local tax law considerations and limited regulation of the securities
markets.
Investment income, net realized gains, and net unrealized gains of the
fund derived in Chile are subject to certain non-U.S. taxes, generally at rates
of 25%, 36% and 36% respectively, upon repatriation to the fund from Chile.
The fund provides for such non-U.S. taxes on investment income, net realized
gains, and net unrealized gains derived in Chile.
3. It is the fund's policy to continue to comply with the requirements of the
Internal Revenue Code applicable to regulated investment companies and to
distribute all of its taxable income, including any net realized gain on
investments, to its shareholders. Therefore, no federal income tax provision
is required.
As of June 30, 1993, unrealized appreciation for book and federal income
tax purposes aggregated $108,421,000, net of accumulated deferred taxes
totaling $2,227,000 on unrealized appreciation of Chilean securities, of which
$111,990,000 related to appreciated securities and $3,569,000 related to
depreciated securities. There was no difference between book and tax realized
gains on securities transactions for the year ended June 30, 1993. The cost of
portfolio securities for book and federal income tax purposes was $103,796,000
at June 30, 1993.
4. The fee of $1,838,000 for management services was paid pursuant to an
agreement with CII, with which certain officers and Trustees of the fund are
affiliated. The investment advisory and service agreement provides for monthly
fees, accrued weekly, based on an annual rate of 1.00% on the first $400
million of the fund's net assets, plus 0.80% on net assets in excess of $400
million. CII is owned by Capital Group International, Inc., which is a wholly
owned subsidiary of The Capital Group, Inc.
5. As of June 30, 1993, accumulated undistributed net realized gain on
investments was $7,103,000 and additional paid-in capital was $92,371,000.
The fund made purchases and sales of investment securities, excluding
short-term securities, of $30,589,000 and $35,860,000, respectively, during the
year ended June 30, 1993.
Dividend and interest income is recorded net of foreign taxes paid. For
the year ended June 30, 1993, such foreign taxes were $220,000.
PER-SHARE DATA AND RATIOS
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C>
Year Ended June 30 Period from
--------- -------- -------- -------- 5/26/89/1/ to
1993 1992 1991 1990 6/30/89
--------- -------- -------- -------- --------
Net Asset Value, Beginning of Period $20.98 $17.79 $12.02 $10.10 $10.00
------ ------ ------ ------ ------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income .37 .41 .61 .90 .06
Net realized and unrealized gain on
investments before non-U.S. taxes 5.59 4.38 6.45 2.05 .04
Non-U.S. taxes (.01) (.20) (.40) (.01) --
------ ------ ------ ------ ------
Total income from investment operations 5.95 4.59 6.66 2.94 .10
------ ------ ------ ------ ------
LESS DISTRIBUTIONS:
Dividends from net investment income -- (.46) (.52) (.92) --
Distributions from net realized gains (2.04) (.94) (.37) (.10) --
------ ------ ------ ------ ------
Total distributions (2.04) (1.40) (.89) (.1.02) --
------ ------ ------ ------ ------
Net Asset Value, End of Period $24.89 $20.98 $17.79 $12.02 $10.10
====== ====== ====== ====== ======
Total Return 31.28% 26.57% 58.82% 30.12% 1.00%/2/
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (in thousands) $211,676 $179,818 $128,913 $80,763 $63,122
Ratio of expenses to average net assets 1.40% 1.53% 1.67% 1.73% .26%/3/
Ratio of expenses and non-U.S. taxes to
average net assets 1.62% 1.71% 1.87% 1.73% .26%/3/
Ratio of net income to average net assets 1.70% 1.92% 4.59% 8.19% .60%/3/
Portfolio turnover rate 17.23% 21.66% 23.25% 50.93% --
</TABLE>
/1/ Commencement of operations
/2/ Annualized
/3/ These ratios are based on operations for the period shown and,
accordingly, are not representative of a full year's operations.
REPORT OF INDEPENDENT ACCOUNTANTS
TO THE BOARD OF TRUSTEES AND SHAREHOLDERS OF
NEW WORLD INVESTMENT FUND
In our opinion, the accompanying statement of assets and liabilities,
including the investment portfolio, and the related statements of operations
and of changes in net assets and the per-share data and ratios present fairly,
in all material respects, the financial position of New World Investment Fund
(the "Fund") at June 30, 1993, the results of its operations, the changes in
its net assets, and the per-share data and ratios for the periods indicated, in
conformity with generally accepted accounting principles. These financial
statements and per-share data and ratios (hereafter referred to as "financial
statements") are the responsibility of the Fund's management; our
responsibility is to express an opinion on these financial statements based
upon our audits. We conducted our audits of these financial statements in
accordance with generally accepted auditing standards which require that we
plan and perform the audit to obtain reasonable assurance about whether the
financial statements are free of material misstatement. An audit includes
examining, on a test basis, evidence supporting the amounts and disclosures in
the financial statements, assessing the accounting principles used and
significant estimates made by management, and evaluating the overall financial
statement presentation. We believe that our audits, which included
confirmation of securities at June 30, 1993 by correspondence with the
custodian and brokers and application of alternative auditing procedures where
confirmations from brokers were not received, provide a reasonable basis for
the opinion expressed above.
/s/ Price Waterhouse
Los Angeles, California
August 6, 1993
NEW WORLD INVESTMENT FUND
Investment Portfolio - December 31, 1994
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C>
Equity-Type Securities
INDUSTRY DIVERSIFICATION Common Preferred Convertible Bonds Percent of
Stocks Stocks Bonds Net Assets
Telecommunications 10.21% 8.25% -% -% 18.46%
Utilities: Electric & Gas 8.06 3.25 - - 11.31
Building Materials & Components 8.15 1.36 1.00 - 10.51
Merchandising 4.22 3.45 0.52 - 8.19
Banking 5.10 0.67 1.42 0.22 7.41
Beverages & Tobacco 4.57 1.53 - - 6.10
Appliances & Household Durables 0.21 5.79 - - 6.00
Forest Products & Paper 2.34 1.49 0.11 0.13 4.07
Metals: Steel 1.64 1.93 0.07 0.41 4.05
Business & Public Services 0.30 2.12 - - 2.42
Financial Services 2.04 - - 0.18 2.22
Equity Common Trusts 2.09 - - - 2.09
Multi-Industry 1.60 - - - 1.60
Broadcasting & Publishing 1.38 - - - 1.38
Industrial Components 0.55 0.60 - 0.15 1.30
Chemicals 1.16 - - - 1.16
Energy Sources 0.96 - - - 0.96
Machinery & Engineering 0.60 0.31 - - 0.91
Real Estate 0.75 - - - 0.75
Electrical & Electronics - 0.29 - - 0.29
Health & Personal Care 0.18 - - - 0.18
Food & Household Products 0.10 - - - 0.10
Miscellaneous 0.60 - - 4.59 5.10
------- ------- ------- ------- -------
56.81% 31.04% 3.12% 5.68% 96.65
======= ======= ======= =======
Short-Term Securities 3.61
Excess of liabilities over cash and receivables 0.26
------
Net Assets 100.00%
=======
</TABLE>
- -----------------
Published Report - NWIF
Ten Largest Equity Holdings
<TABLE>
<CAPTION>
Market Value
Acquisition of Holdings
Percent of Cost 12/31/94
Security Net Assets (in thousands) (in thousands)
<S> <C> <C> <C>
Telecomunicacoes Brasileiras 6.92 $2,065 $19,998
Brasmotor 5.79 3,048 16,735
Chilgener 3.67 11,810 10,610
CEMEX 3.36 5,520 9,716
Cifra 3.29 869 9,510
Telefonica de Argentina 3.21 9,217 9,286
Mesbla 2.53 3,198 7,304
Empresa Nacional de Electricidad 2.45 6,902 7,092
Panamerican Beverages 2.45 6,302 7,087
------- ------- -------
37.74 $54,299 $109,082
======= ======= ========
</TABLE>
- ---------
NEW WORLD INVESTMENT FUND
Investment Portfolio - December 31, 1994
<TABLE>
<CAPTION>
Number
of Shares
or Market Percent
EQUITY-TYPE SECURITIES Principal Value of Net
(common and preferred stocks and convertible debentures) Amount (000) Assets
<S> <C> <C> <C>
Argentina - 10.47%
Astra Compania Argentina de Petroleo SA 1,386,000 $2,287 .79%
Banco de Galicia y Buenos Aires SA, $2,200,000 1,694
7.00% convertible bond August 1, 2002
Banco de Galicia y Buenos Aires SA, Class B 4,200 72 .61
(American Depositary Receipts)
Banco Frances del Rio de la Plata SA
(American Depositary Receipts) 228,000 4,873 1.69
Bemberg Industrial SA (1) 3,000,000 3,000 1.04
Hidroneuquen SA (1) (2) 3,548,980 3,557 1.23
IRSA Inversiones y Representaciones SA 41,650 1,098 .38
(Global Depositary Receipts)(1)
Nortel Inversora SA, Class A, preferred
(American Depositary Receipts) (1) 211,560 1,983 .69
Telecom Argentina STET-France Telecom SA, Class B 741,000 3,631 1.45
Telecom Argentina STET-France Telecom SA, Class B
(American Depositary Shares) (1) 11,000 569
Telefonica de Argentina SA, Class B 455,000 2,343
Telefonica de Argentina SA, Class B (American 131,000 6,943 3.21
Depositary Shares)(1)
YPF SA, Class D (American Depositary Receipts) 22,400 479 .17
32,529 11.26
Brazil - 34.61%
Aracruz Celulose SA, Class B, preferred nominative 6,600 18
Aracruz Celulose SA (American Depositary Receipts) (2) 25,500 325 .12
Banco Bradesco SA, preferred nominative 29,856,111 254 .09
Brasmotor SA, preferred nominative 41,276,787 16,735 5.79
Centrais Electricas Brasileiras SA, Class B, preferred 2,989,976 1,039
nominative
Centrais Electricas Brasileiras SA, ordinary nominative 2,910,967 1,029 .72
CESP-Companhia Energetica de Sao Paulo, preferred 2,396,780 3,272
nominative
CESP-Companhia Energetica de Sao Paulo, preferred
nominative
(American Depositary Receipts) (1) (2) 39,856 518
CESP-Companhia Energetica de Sao Paulo, ordinary 100,000 130
nominative
CESP-Companhia Energetica de Sao Paulo-CPFL, 1,700,000 15 1.36
preferred nominative, warrants, expire October, 1995
(2)
COFAP - Companhia Fabricadora de Pecas, preferred 133,019,600 1,730 .60
nominative
Companhia Cervejaria Brahma, preferred nominative 13,414,641 4,422 1.53
Companhia Cimento Portland Itau, preferred nominative 7,610,000 3,149 1.09
Companhia Energetica de Minas Gerais-CEMIG, preferred 32,215,472 2,932
nominative
Companhia Energetica de Minas Gerais-CEMIG, preferred
nominative
(American Depositary Receipts) (1) (2) 67,000 1,608 1.58
Companhia Metalurgica Barbara, preferred nominative (2) 689,195,763 790 .27
Companhia Siderurgica Belgo-Mineira, preferred 15,891,518 2,198
nominative
Companhia Siderurgica Belgo-Mineira, ordinary 1,824,142 260 .85
nominative
Companhia Vale do Rio Doce, preferred nominative 17,516,720 3,354
Companhia Vale do Rio Doce, ordinary nominative 885,000 292 1.26
Ericsson do Brazil Comercio e Industria SA, 143,182,500 846 .29
preferred nominative
GP Capital Partners, LP (1) (2) 3,000 3,000 1.04
Industrias Klabin de Papel e Celulose SA, preferred 2,757,084 4,106 1.42
nominative
Lojas Americanas SA, preferred nominative 141,218,049 4,173
Lojas Americanas SA, ordinary nominative 96,125,600 2,671
Lojas Americanas SA, preferred nominative,
warrants, expire May 3, 1996 (2) 531,552 2.37
-
Mannesmann SA, ordinary nominative 2,655,000 1,180 .41
Mecanica Pesada, preferred nominative 190,000 898
Mecanica Pesada, ordinary nominative 70,000 563 .51
Mesbla SA, preferred nominative 32,349,795 5,812
Mesbla SA, Series 2, 13.25% covertible bond, November R$10,270,000 1,492 2.53
1, 1996
Petrobras Distribuidora BR, preferred nominative 113,693,000 6,115 2.12
Petroleo Brasileiro SA, preferred nominative 666
-
-
Rhodia-Ster SA (Global Depositary Receipts)(2) 92,000 1,104 .38
Ripasa SA Celulose e Papel, preferred nominative 566,020 184
Ripasa SA Celulose e Papel, 10.00% convertible bond
February 1, 1998 (3) R$ 200,000 315 .17
Telecomunicacoes Brasileiras SA, preferred nominative 446,389,313 19,998 6.92
Telefonica de Sao Paulo SA, preferred nominative 13,071,114 1,862 .64
Vidracaria Santa Marina, ordinary nominative 308,700 1,580 .55
99,969 34.61
Chile - 10.52%
Banco O'Higgins (American Depositary Receipts) (2) 26,600 456 .16
Banmedica SA 2,362,500 884 .31
CAP SA 360,599 1,718 .58
Chilgener SA (American Depositary Receipts) 430,878 10,610 3.67
Compania Cervecerias Unidas SA (American Depositary 110,000 2,736 .95
Shares)
Compania de Telefonos de Chile SA
(American Depositary Receipts) 38,000 2,993 1.04
Compania Tecno Industrial 9,720,000 599 .21
Empresa Nacional de Electricidad SA (American 275,409 7,092 2.45
Depositary Receipts)
Forestal Terranova 360,599 630 .22
Invercap SA 360,599 436 .15
Sociedad Quimica y Minera de Chile SA, Class A 728,600 2,072
Sociedad Quimica y Minera de Chile SA, Class B 59,392 178 .78
30,404 10.52
Colombia - 2.42%
Banco de Colombia SA (Global Depositary Receipts) 65,000 598
Banco de Colombia SA 5.20% convertible bond February 1, $1,700,000 1,572 .75
1999 (1)
Cementos Diamante, SA 141,731 853 .29
Cementos Paz del Rio (American Depositary Receipts) (1) 42,000 830 .28
(2)
Corporacion Financiera del Valle SA, Class B
(American Depositary Receipts) (1) 159,199 3,144 1.10
6,997 2.42
Ecuador - 0.77%
La Cemento Nacional C.A. 5,800 2,225 .77
Mexico - 26.78%
Apasco, SA de CV, Class A 630,976 3,194 1.11
CEMEX, SA, Class A 67,500 339
CEMEX, SA, Class B 1,196,100 6,359
CEMEX, SA, Class B (American Depositary Receipts) 13,000 138
CEMEX, SA, Class B, 4.25% convertible bond, November $3,600,000 2,880 3.36
1, 1997 (1)
Cifra, SA de CV, Class B 3,028,930 6,256
Cifra, SA de CV, Class C 1,682,142 3,254 3.29
Coca-Cola FEMSA, SA de CV, Class L
(American Depositary Receipts) 26,400 650 .22
Embotelladores del Valle de Anahuac, SA de CV, Class B 349,100 826 .29
Fomento Economico Mexicano, SA de CV, Class B 82,200 214 .07
Gruma, SA de CV, Class B 68,000 283 .10
Grupo Carso, SA de CV, Class A1 467,300 3,500 1.22
Grupo Casa Autrey, SA de CV (American Depositary 24,500 551 .19
Receipts)
Grupo Embotellador de Mexico, SA de CV,
ordinary participation certificates 8,700 67
Grupo Embotellador de Mexico, SA de CV, ordinary
participation certificates (Global Depositary 112,000 1,610 .58
Receipts)
Grupo Financiero Banamex Accival, SA de CV, Class B 800,300 2,287
Grupo Financiero Banamex Accival, SA de CV, Class C 555,200 1,632
Grupo Financiero Banamex Accival, SA de CV, Class L 41,700 123
Grupo Financiero Banamex Accival, SA de CV,
7.00% convertible debentures December 15, 1999 $1,030,000 824 1.68
Grupo Financiero Bancomer, SA de CV, Class B 150,000 73
Grupo Financerio Bancomer, SA de CV, Class C 36,648 20
Grupo Financerio Bancomer, SA de CV, Class C
(American Depositary Shares) (1) 81,063 922 .35
Grupo Financiero Serfin, SA de CV, Class L
(American Depositary Shares) 25,400 191 .07
Grupo Industrial Durango, SA de CV, ordinary
participation
certificates (American Depositary Receipts) (2) 59,000 833 .29
Grupo Televisa, SA, ordinary participation certificates 106,000 1,741
Grupo Televisa, SA, ordinary participation certificates
(American Depositary Receipts) 71,000 2,254 1.38
Hylsamex, SA de CV, Class B (American Depositary 66,000 1,097 .38
Receipts)(1)(2)
Internacional de Ceramica, SA de CV, Class B 55,200 180
Internacional de Ceramica, SA de CV, Class C
(American Depositary Shares) (1) (2) 80,000 1,640
Internacional de Ceramica, SA de CV
(American Depositary Receipts)(2) 90,400 1,853 1.27
Kimberly-Clark de Mexico, SA de CV, Class A 350,000 4,157
Kimberly-Clark de Mexico, SA de CV, Class B 70,000 814 1.72
Panamerican Beverages, Inc., Class A 224,100 7,087 2.45
Servicios Financieros Quadrum, SA, ordinary
participation
certificates (American Depositary Receipts) (2) 180,000 1,125 .39
Telefonos de Mexico, SA de CV, Class A 1,650,000 3,455
Telefonos de Mexico, SA de CV, Class L 2,475,000 5,152 4.07
Telefonos de Mexico, SA de CV, Class L
(American Depositary Receipts) 76,500 3,137
Tolmex, SA de CV, Class B2 593,000 5,022 1.74
Tubos de Acero de Mexico, SA (2) 151,000 735
Tubos de Acero de Mexico, SA
(American Depositary Receipts)(2) 141,200 662
Tubos de Acero de Mexico, SA
7.5% convertible Eurobond, June 12, 1997 $250,000 225 .56
77,362 26.78
Peru - 1.93%
Banco de Credito del Peru 2,137,087 4,703 1.63
Ontario-Quinta A.V.V. (1) (2) 877,083 877 .30
5,580 1.93
Philippines - 0.69%
Ayala Land, Inc., Class B 675,000 1,060 .37
Philippine Long Distance Telephone Co.
(Global Depositary Receipts) 30,000 915 .32
Philippine National Bank 282 4
1,979 .69
Portugal - 0.39%
Corticeira Amorim - Sociedade Gestora de Participacoes
Socais, SA 68,000 1,134 .39
United States - 0.11%
Atlantic Tele-Network, Inc. (2) 36,700 312 .11
Uruguay - 0.58%
Banco Comercial Portugues, SA 100,000 1,675 .58
(Global Depositary Receipts) (2)
Venezuela - 0.31%
Fabrica Nacional de Cementos SACA 4,098,800 603 .21
Venezolana de Cementos, SACA, Class A 157,500 268
Venezolana de Cementos, SACA, Class B 22,206 31 .10
902 .31
Miscellaneous - 0.60%
Stocks in initial period of acquisition 1,721 .60
TOTAL EQUITY-TYPE SECURITIES (cost: $172,502,000) 262,789 90.97
Principal
Amount
BONDS AND NOTES (000)
Argentina - 2.94%
Republic of Argentina Bocon 6.125% April 1, 2001 (3) $13,500 7,856 2.72
Republic of Argentina Eurobond Series L 6.50%
March 31, 2005 (3) 1,000 640 .22
8,496 2.94
Brazil - 0.38%
Aracruz Celulose SA Eurobond 9.00% July 22, 1998 150 143 .04
Brazil C-Bond PIK 8.00% April 15, 2014 765 367 .13
Minas Gerias 7.875% Feburary 10, 1999 750 589 .21
1,099 .38
Mexico - 0.93%
Banco Nacional Commerce Global 7.25% February 2, 2004 900 639 .22
Grupo Industrial Durango 12.00% July 15, 2001 250 228 .08
Ispat Mexicana, SA de CV 10.375% 500 427 .15
Senior Notes due March 15, 2001 (1)
Tubos De Acero de Mexico 13.75% December 8, 1999 (1) 1,250 1,181 .41
United Mexican States MYRA (multi-year restructuring
agreement)/Agent-Citibank, N.A./Loan Participation 300 212 .07
Agreements (Participation-Salomon Brothers
Inc.)(2,3,4,5)
2,687 .93
Panama - 0.17%
Republic of Panama 7.125% May 10, 2002 (3) 400 326
Republic of Panama/Agent-Citibank, N.A./Loan 510 161 .17
Participation
Agreements (Participation-Citibank, N.A.)(2,3,4,5)
487 .17
Peru - 1.08%
Republic of Peru/Agent-Bankers Trust Company/ 966 266
Loan Participation Agreements
(Participation-Citibank, N.A.) (2,3,4,5,)
Republic of Peru/Agent-Citibank, N.A./Loan 1,844 513
Participation
Agreements (Participation-Salomon Brothers Inc.)
(2,3,4,5)
Republic of Peru/Agent-Citibank, N.A./Loan 2,572 712 1.08
Participation
Agreements (Participation-Citibank, N.A.) (2,3,4,5)
Republic of Peru/Agent-Citibank, N.A./Loan 2,649 741
Participation
Agreements (Participation-Morgan Guaranty Trust)
(2,3,4,5)
Republic of Peru/Agent-Wells Fargo Bank/Loan 820 224
Participation
Agreements (Participation-Citibank, N.A.) (2,3,4,5)
Republic of Peru/Agent-Wells Fargo Bank/Loan 2,407 658
Participation
Agreements (Participation-Morgan Guaranty Trust)
(2,3,4,5)
3,114 1.08
Venezuela - 0.18%
Venezolana de Cementos, SACA
Eurobond 9.25% November 22, 1996 600 528 .18
TOTAL BONDS AND NOTES (cost: $17,497,000) 16,411 5.68
SHORT-TERM SECURITIES
Non-U.S. Currency - 0.00%
Chilean peso $10,437 3.61%
CHP4,183,064
TOTAL SHORT-TERM SECURITIES (cost: $10,368,000) 10,437 3.61
TOTAL INVESTMENT SECURITIES (cost: $200,367,000) 289,637 100.26
Excess of liabilities over cash and receivables 752 .26
NET ASSETS $288,885 100.00%
</TABLE>
(1) Purchased in a private placement transaction;
resale to the public may require registration.
(2) Non-income-producing security.
(3) Coupon rate may change periodically.
(4) Security is currently in default.
(5) Participation interests were acquired through the financial
institution indicated parenthetically.
Non-U.S. currency symbols:
R$ - Brazilian real
CHP - Chilean peso
See Notes to Financial Statements
Equity - type securities added to the portfolio since
June 30, 1994
Banco Comercial Portugues
Banco de Galicia y Buenos Aires
Cementos Paz del Rio
CESP-Companhia Energetica de Sao Paulo
Compania Tecno Industrial
Forestal Terranova
Gruma
Grupo Industrial Durango
Hylsamex
Invercap
La Cemento Nacional
Ontario-Quinta A.V.V.
Rhodia-Ster
Servicios Financieros Quadrum
Equity - type securities eliminated from the
portfolio since June 30, 1994
Alpargatas
Cia. Hering
Companhia Siderurgica da Guanabara
Companhia Suzano de Papel e Celulose
Compania de Cemento Argos
Empresas La Moderna
Grupo Herdez
Grupo Industrial Maseca
Grupo Radio Centro
Ipako
Mavesa
Metal Leve Electronica Vehicular
Transportacion Maritima Mexicana
Usinas Siderurgicas de Minas Gerais
Venezolana de Prerreducidos Caroni
<TABLE>
<CAPTION>
<S> <C> <C>
New World Investment Fund
Financial Statements
Statement of Assets and Liabilities
at December 31, 1994 (dollars in thousands) (Unaudited)
Assets:
Investment securities at market
(cost: $200,367) ............... $289,637
Cash ............................... 67
Receivables for--
Sales of investments .......... $605
Dividends and accrued interest .. 2,886 2,886
-------- --------
2,953
Liabilities: --------
Non-U.S. taxes payable.............. 93
Payables for--
Purchases of investments ........ 3,704
Management services ............. 249
Accrued expenses ................ 264 4,217
-------- --------
Net Assets at December 31, 1994 -- 4,310
Equivalent to $22.95 per share on --------
12,588,493 shares of beneficial
interest issued and outstanding,
par value $0.001 per share;
unlimited shares authorized $(1,357)
========
Statement of Operations for the Six Months Ended
December 31, 1994 (dollars in thousands) (Unaudited)
Investment Income:
Income:
Dividends ..................... $1,746
Interest ...................... 1,711 $1,711
--------
Expenses:
Management services fee ....... 1,737
Custodian fee .................. 395
Auditing and legal fees ........ 50
Reports to shareholders ........ 4
Registration statement and prospectus 2
Taxes other than federal
income tax .................. 1
Other expenses ................. 46 2,235
-------- --------
Income before non-U.S. taxes........ (2,235)
Non-U.S. taxes...................... (153)
--------
Net investment income .............. (2,388)
--------
Realized Gain and Unrealized
Depreciation on Investments:
Realized gain before non-U.S. taxes.. 55,581
Non-U.S. taxes...................... (5,131)
Net realized gain ............. -------- 50,450
Net unrealized appreciation:
Beginning of period ............ 139,418
End of period ................... 89,270
--------
Net unrealized depreciation ... (50,148)
Decrease in unrealized non-U.S.
taxes.. 3,990 (46,158)
-------- --------
Net realized gain and unrealized
depreciation on investments .... 4,292
--------
Net Increase in Net Assets Resulting
from Operations ................. $1,904
========
Statement of Changes in Net Assets
(dollars in thousands)
Six Months Year Ended
Ended
December 31 June 30
1994 (1) 1994
-------- --------
Operations:
Net investment income .............. $1,069 $4,056
Net realized gain on investments ... 50,450 45,168
Net unrealized appreciation (depreciation)
on investments ................... (46,158) 26,003
-------- --------
Net increase in net assets
resulting from operations ...... 4,292 71,171
-------- --------
Dividends and Distributions Paid
to Shareholders:
Dividends from net
investment income ................ (366) (1,837)
Distributions from net realized
gain on investments .............. (89,986) (19,590)
-------- --------
Total dividends and
distributions .................. (90,352) (21,427)
-------- --------
Capital Share Transactions:
Proceeds from shares sold:
738,845 shares ............... 23,572
Proceeds from shares issued in
reinvestment of net investment
income dividends and
distributions of net realized
gain on investments:
3,415,584 and 671,062 shares,
respectively ...................... 90,342 19,991
Cost of shares repurchased:
595,821 and 144,495
shares, respectively ............. (21,892) (3,613)
-------- --------
Net increase in net assets
resulting from capital share
transactions ................... 68,450 39,950
-------- --------
Total Increase (Decrease) in Net Assets (17,610) 89,694
Net Assets:
Beginning of period .................. 305,426 211,676
------- --------
End of period (including
excess of distributions over net investment
income: $1,745 and $2,448,
respectively) .................... $287,816 $301,370
========= =========
</TABLE>
(1) Unaudited
See Notes to Financial Statements
Notes to Financial Statements
1. New World Investment Fund (the "fund") is registered under the Investment
Company Act of 1940 as a closed-end, non-diversified management investment
company. The following paragraphs summarize the significant accounting
policies consistently followed by the fund in the preparation of its financial
statements:
Equity-type securities are stated at market value based upon closing sales
prices reported on recognized securities exchanges on the last business day of
the period or, for listed securities having no sales reported and for unlisted
securities, upon last-reported bid prices on that date. In cases where
securities are traded on more than one exchange, the securities are valued on
the exchange designated by or under the authority of the Board of Trustees as
the primary market. Bonds and notes are valued at prices obtained from a
bond-pricing service provided by a major dealer in bonds, when such prices are
available; however, in circumstances where the investment adviser deems it
appropriate to do so, such securities will be valued at the mean of their
representative quoted bid and asked prices or, if such prices are not
available, at the mean of such prices for securities of comparable maturity,
quality, and type. Short-term securities with original or remaining maturities
in excess of 60 days are valued at the mean of their quoted bid and asked
prices. Short-term securities with 60 days or less to maturity are amortized
to maturity based on their cost to the fund if acquired within 60 days of
maturity or, if already held by the fund on the 60th day, based on the value
determined on the 61st day. Securities for which market quotations are not
readily available (including restricted securities which are subject to
limitations as to their sale), or which are not deemed to represent market
value, are valued at fair value as determined in good faith by the Valuation
Committee of the Board of Trustees.
As is customary in the mutual fund industry, securities transactions are
accounted for on the date the securities are purchased or sold. Realized gains
and losses from securities transactions are reported on an identified cost
basis. Dividend and interest income is reported on the accrual basis.
Discounts on securities purchased are amortized over the life of the respective
securities. The fund does not amortize premiums on securities purchased.
Dividends on distributions paid to shareholders are recorded on the ex-dividend
date.
Investment securities, cash balances, and other assets and liabilities
denominated in non-U.S. currencies are recorded in the financial statements
after translation into U.S. dollars utilizing rates of exchange on the last
business day of the period. Purchases and sales of investment securities,
dividend and interest income, and certain expenses are calculated at the rates
of exchange prevailing on the respective dates of such transactions.
Gains and losses that arise from changes in exchange rates are not segregated
from gains and losses that arise from changes in market prices of investments.
The effects on net investment income arising from changes in exchange rates are
also not segregated.
Pursuant to the custodian agreement, the fund receives credits against its
custodian fee for imputed interest on certain balances with the custodian
bank. The custodian fee of $395,000 includes $19,000 that was paid by these
credits rather than in cash.
2. Investing in securities of issuers in a variety of developing countries
involves certain special investment risks, which may include investment and
repatriation restrictions, currency volatility, government involvement in the
private sector, limited investor information, shallow securities markets,
certain local tax law considerations, and limited regulation of the securities
markets.
Dividend income and interest income, net realized gains, and net unrealized
gains of the fund derived in Chile are subject to certain non-U.S. taxes at
rates of 20% and 35%, respectively. The fund provides for such non-U.S. taxes
on investment income, net realized gains, and net unrealized gains.
3. It is the fund's policy to continue to comply with the requirements of the
Internal Revenue Code applicable to regulated investment companies and to
distribute all of its net taxable income, including any net realized gain on
investments, to its shareholders. Therefore, no federal income tax provision
is required.
As of December 31, 1994, net unrealized appreciation on investments for book
and federal income tax purposes aggregated $88,266,000, net of accumulated
deferred taxes totaling $1,004,000 on net unrealized appreciation of Chilean
securities, of which $111,186,000 related to appreciated securities and
$22,920,000 related to depreciated securities. There was no difference between
book and tax realized gains on securities transactions for the six months ended
December 31, 1994. The cost of portfolio securities for book and federal
income tax purposes was $200,367,000 at December 31, 1994.
4. The fee of $1,737,000 for management services was paid pursuant to an
agreement with Capital International, Inc. (CII), with which certain officers
and Trustees of the fund are affiliated. The Investment Advisory and Service
Agreement provides for monthly fees, accrued weekly, based on an annual rate of
1.00% on the first $400 million of the fund's net assets, plus 0.80% of such
assets in excess of $400 million. CII is owned by Capital Group International,
Inc., which is a wholly owned subsidiary of The Capital Group Companies, Inc.
5. As of December 31, 1994, accumulated undistributed net realized gain on
investments was $1,462,000 and additional paid-in capital was $200,889,000.
The fund made purchases and sales of investment securities, excluding
short-term securities, of $100,244,000 and $95,617,000, respectively, during
the six months ended December 31, 1994.
Dividend and interest income is recorded net of non-U.S. taxes paid. For the
six months ended December 31, 1994, such non-U.S. taxes were $151,000.
Per-Share Data and Ratios
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C> <C>
Six
months Year-Ended June 30
ended
12/31/94 1994 1993 1992 1991 1990
(1)
------- ----- ----- ----- ----- -----
Net Asset Value, Beginning of Period $31.27 $24.89 $20.98 $17.79 $12.02 $10.10
------- ----- ----- ----- ----- -----
Income from Investment Operations:
Net investment income ....... .15 .50 .37 .41 .61 .90
Net realized and unrealized
gains on investments before
non-U.S. taxes ........... 1.75 8.83 5.59 4.38 6.45 2.05
Non-U.S. taxes .............. (.37) (.50) (.01) (.20) (.40) (.01)
------- ----- ----- ----- ----- -----
Total income from investment
operations ...... 1.53 8.83 5.95 4.59 6.66 2.94
------- ----- ----- ----- ----- -----
Less Distributions:
Dividends from net investment
income ... (.04) (.21) - (.46) (.52) (.92)
Distributions from net
realized gains ... (9.81) (2.24) (2.04) (.94) (.37) (.10)
------- ----- ----- ----- ----- -----
Total distributions ..... (9.85) (2.45) (2.04) (1.40) (.89) (1.02)
------- ----- ----- ----- ----- -----
Net Asset Value, End of Period ... $22.95 $31.27 $24.89 $20.98 $17.79 $12.02
======= ====== ====== ====== ====== ======
Total Return .............. 0.72% (2) 35.97% 31.28% 26.57% 58.82% 30.12%
Ratios/Supplemental Data:
Net assets, end of period
(in millions) ......... $289 $305 $212 $180 $129 $81
Ratio of expenses to average
net assets .......... 0.66% (2) 1.36% 1.40% 1.53% 1.67% 1.73%
Ratio of expenses and non-U.S.
taxes to average net assets.... 0.70% (2) 1.50% 1.62% 1.71% 1.87% 1.73%
Ratio of net income to average
net assets .. 0.32% (2) 1.43% 1.70% 1.92% 4.59% 8.19%
Portfolio turnover rate ........ 30.72% 21.47% 17.23% 21.66% 23.25% 50.93%
(2)
</TABLE>
(1) Unaudited
(2) These ratios are based on operations for the period shown and,
accordingly, are not
representative of a full year's operations.
LETTER OF TRANSMITTAL
To Accompany Shares of Beneficial Interest of
New World Investment Fund
Tendered Pursuant to the Offer to Purchase
Dated June 12, 1995
THE OFFER AND WITHDRAWAL RIGHTS WILL EXPIRE ON
JULY 14, 1995, AT 9:00 P.M.,
PACIFIC TIME, UNLESS EXTENDED.
NEW WORLD INVESTMENT FUND
c/o Capital International, Inc.
11100 Santa Monica Boulevard, 15th Floor
Los Angeles, California 90025
Information Number: Telephone (310) 996-6229
DELIVERY TO AN ADDRESS OTHER THAN THAT SHOWN ABOVE DOES NOT CONSTITUTE VALID
DELIVERY.
PLEASE READ THE ACCOMPANYING INSTRUCTIONS CAREFULLY
Gentlemen:
The undersigned hereby tenders to New World Investment Fund, a closed-end
investment company, organized as a Massachusetts business trust (the "Fund"),
the certificates described below representing shares of beneficial interest
("Shares"), $.001 par value per Share, for purchase by the Fund at a price
equal to their Net Asset Value calculated as of the Expiration Date (as defined
in the Offer to Purchase), net to the seller in cash, upon the terms and
conditions set forth in the Offer to Purchase dated June 12, 1995, receipt of
which is hereby acknowledged, and in this Letter of Transmittal (which together
constitute the "Offer').
The undersigned hereby sells, assigns and transfers to or upon the order of
the Fund all Shares tendered hereby that are purchased pursuant to the Offer
and hereby irrevocably constitutes and appoints CII attorney-in-fact of the
undersigned, with full power of substitution (such power of attorney being
deemed to be an irrevocable power coupled with an interest), to (a) present
such certificates for cancellation and transfer of such Shares on the Fund's
books and (b) receive all benefits and otherwise exercise all rights of
beneficial ownership of such Shares, subject to the next succeeding paragraph,
all in accordance with the terms of the Offer. The undersigned hereby warrants
that the undersigned has full authority to sell, assign and transfer the Shares
tendered hereby and that the Fund will acquire good title thereto, free and
clear of all liens, charges, encumbrances, conditional sales agreements or
other obligations relating to the sale or transfer thereof, and not subject to
any adverse claim, when and to the extent the same are purchased by it. Upon
request, the undersigned will execute and deliver any additional documents
necessary to complete the transfer.
The undersigned hereby irrevocably appoints the Fund the attorney and proxy of
the undersigned, with full power of substitution, to vote in such manner as
such attorney and proxy or substitute shall in its or his sole discretion deem
proper, and otherwise act with respect to, all of the Shares which the
undersigned is entitled to vote at any meeting (whether annual or special, and
whether or not an adjourned meeting) of the Fund and which have been purchased
by the Fund prior to the date of such meeting. This proxy is irrevocable and
is granted in consideration of the purchase by the Fund of such Shares and upon
such purchase shall revoke any other proxy granted by the undersigned, at any
time before or after such purchase.
DESCRIPTION OF SHARES TENDERED
(See Instructions 3 and 4)
<TABLE>
<CAPTION>
<S> <C>
Name(s) and Address(es) Certificate(s) Tendered
of Registered Holder(s). (Attach signed schedule if
Please fill in Exactly as necessary)
Name(s) Appear(s) on
Certificate (or Correct Label)
</TABLE>
<TABLE>
<CAPTION>
Certificate No(s).* No. of Shares
Tendered**
<S> <C> <C>
___________ ___________
___________ ___________
___________ ___________
___________ ___________
___________ ___________
</TABLE>
<TABLE>
<CAPTION>
<S> <C>
Account No. _______________ Total Shares Tendered _____________
</TABLE>
* Need not be completed by shareholders whose Shares are not evidenced by
certificates.
** To be completed by all tendering shareholders, whether or not your Shares
are evidenced by certificate. If you desire to tender fewer than all Shares
held in your account or evidenced by a certificate listed above, please
indicate in this column the number you wish to tender. Otherwise all Shares
evidenced by such certificate or held in your account will be deemed to have
been tendered.
SIGNATURE FORM
SIGN HERE
(See Instructions 1 and 5)
Tax Identification or Social Security Number(s) ____________________
Under penalty of perjury, I certify (1) that the number set forth above is my
correct Social Security Number or Taxpayer Identification Number and (2) that I
am not subject to backup withholding either because I have not been notified
that I am subject thereto as a result of failure to report all interest or
dividends, or the Internal Revenue Service ("IRS") has notified me that I am no
longer subject thereto. INSTRUCTION: You must strike out the language in (2)
above if you have been notified that you are subject to backup withholding due
to underreporting and you have not received a notice from the IRS that backup
withholding has been terminated.
The undersigned recognizes that, under certain circumstances set forth in the
Offer to Purchase, the Fund may not be required to purchase the Shares tendered
hereby. The undersigned understands that certificate(s) for Shares not
purchased will be returned to the undersigned at the address indicated above.
In the case of Shares not evidenced by certificates, CII will cancel the tender
order as to any Shares not purchased by the Fund.
The check for the purchase price for such of the tendered Shares as are
purchased should be issued to the order of the undersigned and mailed to the
address indicated above.
All authority herein conferred or agreed to be conferred shall survive the
death or incapacity of the undersigned and any obligation of the undersigned
hereunder shall be binding upon the heirs, personal representatives, successors
and assigns of the undersigned. Except as stated in the Offer, this tender is
irrevocable.
_________________________ Name(s) __________________________
_________________________ ______________________________________
Date _______________, 1995 Telephone Number ( ) ______________
Signature(s) Guaranteed ________________________
INSTRUCTIONS
FORMING PART OF THE TERMS AND CONDITIONS OF THE OFFER
1. GUARANTEE OF SIGNATURES. If this Letter of Transmittal is signed by the
registered holder of the Shares tendered herewith and payment is to be made
directly to such holder, no signature guarantee is required. In all other
cases, all signatures on this Letter of Transmittal must be guaranteed by an
eligible financial institution, such as a member firm of a registered national
securities exchange, or a commercial bank or trust company having an office,
branch or agency in the United States.
2. DELIVERY OF LETTER OF TRANSMITTAL AND CERTIFICATES; GUARANTEED DELIVERY
PROCEDURES. Certificates for all tendered Shares, with a properly completed
and duly executed Letter of Transmittal, should be mailed or delivered to
Capital International, Inc. ("CII") at 11100 Santa Monica Boulevard, 15th
Floor, Los Angeles, California 90025 and must be received by CII prior to the
Expiration Date of the Offer as defined in the Offer to Purchase.
THE METHOD OF DELIVERY OF ALL DOCUMENTS, INCLUDING CERTIFICATES FOR SHARES, IS
AT THE ELECTION AND RISK OF THE TENDERING SHAREHOLDER.
3. INADEQUATE SPACE. If the space provided is inadequate, the certificate
numbers and number of Shares should be listed on a separate signed schedule
attached hereto.
4. PARTIAL TENDERS. If fewer than all of your Shares or all the Shares
evidenced by any certificate submitted are to be tendered, fill in the number
of Shares which are to be tendered in the column entitled "No. of Shares
Tendered." If applicable, a new certificate for the remainder of the Shares
evidenced by your old certificate(s) will be sent to you as soon as practicable
after the Expiration Date of the Offer. All Shares represented by a
certificate that is listed in the letter of Transmittal are deemed to have been
tendered unless otherwise indicated.
5. SIGNATURES ON LETTER OF TRANSMITTAL, AUTHORIZATIONS AND ENDORSEMENTS.
(a) If this Letter of Transmittal is signed by the registered holder of the
Shares tendered hereby, the signature must correspond with the name as written
on the face of the corresponding certificates without any change whatever.
(b) If the certificates are held of record by two or more joint holders, all
such holders must sign this Letter of Transmittal.
(c) If any tendered Shares are registered in different names on several
certificates, it will be necessary to complete, sign and submit as many
separate Letters of Transmittal as there are different registrations of
certificates.
(d) When this Letter of Transmittal is signed by the registered holder(s) of
the certificates listed and transmitted hereby, no endorsements of certificates
are required.
(e) If this letter of Transmittal or any certificates or authorizations are
signed by trustees, executors, administrators, guardians, attorneys-in-fact,
officers of corporations or others acting in a fiduciary or representative
capacity, such persons should so indicate when signing , and must submit proper
evidence satisfactory to CII and the Fund of their authority so to act.
(f) If this Letter of Transmittal is signed by a person other than the
registered holder of the certificates listed, the certificates must be endorsed
or accompanied by appropriate authorizations, in either case signed exactly as
the name of the registered holder appears on the certificates. Signatures on
such certificates or authorizations must be guaranteed as described above. See
Instruction 1.
6. STOCK TRANSFER TAXES. The Fund will pay all stock transfer taxes, if any,
payable on the transfer to it of Shares purchased pursuant to the Offer. If,
however, tendered certificates are registered in the name of any person other
than the person(s) signing this Letter of Transmittal, the amount of any stock
transfer taxes (whether imposed on the registered holder or such other person)
payable on account of the transfer to such person will be deducted from the
purchase price unless satisfactory evidence of the payment of such taxes, or
exemption therefrom, is submitted. Payment by the Fund of stock transfer taxes
for which the shareholder is liable may be deemed to result in taxable income
to the shareholder equal in amount to the transfer taxes so paid.
7. IRREGULARITIES. All questions as to the validity, form, eligibility
(including time of receipt) and acceptance of any tender of Shares will be
determined by the Fund, whose determination shall be final and binding. The
Fund reserves the absolute right to reject any or all tenders determined by it
not to be in appropriate form or the acceptance of or payment for which would,
in the opinion of the Fund's counsel, be unlawful. The Fund also reserves the
absolute right to waive any defect in any tender with respect to any particular
Shares of any particular shareholder, and the Fund's interpretations of the
terms and conditions of the Offer (including these instructions) will be final
and binding. Unless waived, any defects or irregularities in connection with
tenders must be cured within such time as the Fund shall determine. Tenders
will not be deemed to have been made until all defects and irregularities have
been cured or waived. Neither the Fund, nor CII, nor any other person shall be
obligated to give notice of defects or irregularities in tenders, nor shall any
of them incur any liability for failure to give any such notice.
8. IMPORTANT TAX INFORMATION. Under federal income tax law, a shareholder
whose tendered Shares are accepted for payment is required by law to provide
CII (as payor) with his or her correct taxpayer identification number, which is
accomplished by completing and signing the Signature Form. If CII is not
provided with the correct taxpayer identification number, the shareholder may
be subject to penalties imposed by the Internal Revenue Service, and
withholding of proceeds pursuant to the Internal Revenue Code of 1986, as
amended.
9. ADDITIONAL COPIES. Additional copies of the Offer to Purchase and this
Letter of Transmittal may be obtained from CII at 11100 Santa Monica Boulevard,
15th Floor, Los Angeles, California 90025, attention Roberta A. Conroy, or by
telephoning (310) 996-6229.
CONSENT OF INDEPENDENT ACCOUNTANTS
We hereby consent to the incorporation by reference in this filing on Schedule
13E-4of our reports dated August 5, 1994 and August 6, 1993 relating to the
financial statements and per share data and ratios of New World Investment Fund
for the years ended June 30, 1994 and 1993, respectively.
PRICE WATERHOUSE LLP
Los Angeles, California
June 7, 1995
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