<PAGE>
===============================================================================
Dimensional Investment Group Inc.
DFA One-Year Fixed Income Portfolio II
Semi-Annual Report
Period Ended May 31, 1995
(Unaudited)
===============================================================================
<PAGE>
DIMENSIONAL INVESTMENT GROUP INC.
DFA ONE-YEAR FIXED INCOME PORTFOLIO II
SEMI-ANNUAL REPORT
(UNAUDITED)
TABLE OF CONTENTS
Page
-------
Dimensional Investment Group Inc. ..
Statement of Assets and
Liabilities ................. 1
Statement of Operations ....... 2
Statement of Changes in Net
Assets ...................... 3
Financial Highlights .......... 4
Notes to Financial Statements . 5-6
The DFA Investment Trust Company ...
The DFA One-Year Fixed Income Series
Statement of Net Assets ....... 7-8
Statement of Operations ....... 9
Statements of Changes in Net
Assets ...................... 10
Financial Highlights .......... 11
Notes to Financial Statements . 12-13
This report is submitted for the information of the Fund's shareholders. It
is not authorized for distribution to prospective investors unless preceded
or accompanied by an effective prospectus.
i
<PAGE>
DIMENSIONAL INVESTMENT GROUP INC.
DFA ONE-YEAR FIXED INCOME PORTFOLIO II
STATEMENT OF ASSETS AND LIABILITIES
MAY 31, 1995
(UNAUDITED)
<TABLE>
<CAPTION>
ASSETS:
<S> <C>
Investment in The DFA One-Year Fixed Income Series of The DFA Investment Trust
Company
(2,795 Shares, Cost $277,047) at Value ............................................. $279,090
Other Receivable .................................................................... 11,764
Prepaid Expenses and Other Assets ................................................... 36,428
----------
Total Assets ...................................................................... 327,282
----------
LIABILITIES:
Accrued Expenses .................................................................... 9,115
----------
Total Liabilities ................................................................. 9,115
----------
Net Assets .......................................................................... $318,167
==========
SHARES OUTSTANDING, $.01 PAR VALUE (Authorized 100,000,000) ......................... 3,136
==========
Net Asset Value, Offering and Redemption Price Per Share ............................ $ 101.46
==========
NET ASSETS CONSIST OF:
Paid-In Capital ..................................................................... $316,043
Accumulated Net Investment Loss ..................................................... (109)
Undistributed Net Realized Gain ..................................................... 190
Unrealized Appreciation of Investment Securities .................................... 2,043
----------
Total Net Assets .................................................................. $318,167
==========
</TABLE>
See accompanying Notes to Financial Statements
1
<PAGE>
DIMENSIONAL INVESTMENT GROUP INC.
DFA ONE-YEAR FIXED INCOME PORTFOLIO II
STATEMENT OF OPERATIONS
FOR THE PERIOD FEBRUARY 9, 1995
(COMMENCEMENT OF OPERATIONS)
TO MAY 31, 1995
(UNAUDITED)
<TABLE>
<CAPTION>
Investment Income
<S> <C>
Dividends ............................................................ $ 2,171
----------
Expenses
Administrative Services .............................................. 47
Accounting & Transfer Agent Fees ..................................... 2,000
Filing Fees .......................................................... 4,299
Legal Fees ........................................................... 818
Audit Fees ........................................................... 886
Shareholder Reports .................................................. 1,612
Directors' Fees and Expenses ......................................... 1,463
Other ................................................................ 1,477
----------
Total Expenses .................................................... 12,602
Less: Fees Waived and Expenses Reimbursed ............................ (11,796)
----------
Net Expenses ......................................................... 806
----------
Net Investment Income ................................................ 1,365
----------
Net Realized and Unrealized Gain (Loss) on Investments
Net Realized Gain on Investment Securities ............................. 190
Change in Unrealized Appreciation (Depreciation) of Investment
Securities ........................................................... 2,043
----------
Net Gain on Investment Securities ...................................... 2,233
----------
Net Increase in Net Assets Resulting from Operations ................... $ 3,598
==========
</TABLE>
See accompanying Notes to Financial Statements
2
<PAGE>
DIMENSIONAL INVESTMENT GROUP INC.
DFA ONE-YEAR FIXED INCOME PORTFOLIO II
STATEMENT OF CHANGES IN NET ASSETS
FOR THE PERIOD FEBRUARY 9, 1995
(COMMENCEMENT OF OPERATIONS)
TO MAY 31, 1995
(UNAUDITED)
<TABLE>
<CAPTION>
<S> <C>
Increase (Decrease) in Net Assets
Operations:
Net Investment Income ................................................ $ 1,365
Net Realized Gain on Investment Securities ........................... 190
Change in Unrealized Appreciation (Depreciation) of Investment
Securities ........................................................ 2,043
----------
Net Increase in Net Assets Resulting from Operations .............. 3,598
----------
Distributions From:
Net Investment Income ................................................ (1,474)
----------
Capital Share Transactions (1):
Shares Issued ........................................................ 315,376
Shares Issued in Lieu of Cash Distributions .......................... 1,474
Shares Redeemed ...................................................... (807)
----------
Net Increase From Capital Share Transactions ...................... 316,043
----------
Total Increase .................................................... 318,167
Net Assets
Beginning of Period .................................................. --
----------
End of Period ........................................................ $318,167
==========
(1) Shares Issued and Redeemed:
Shares Issued ........................................................ 3,129
Shares Issued in Lieu of Cash Distributions .......................... 15
Shares Redeemed ...................................................... (8)
----------
3,136
==========
</TABLE>
See accompanying Notes to Financial Statements
3
<PAGE>
DIMENSIONAL INVESTMENT GROUP INC.
DFA ONE-YEAR FIXED INCOME PORTFOLIO II
FINANCIAL HIGHLIGHTS
FOR THE PERIOD FEBRUARY 9, 1995
(COMMENCEMENT OF OPERATIONS)
TO MAY 31, 1995
(UNAUDITED)
(FOR A SHARE OUTSTANDING THROUGHOUT THE PERIOD)
Net Asset Value, Beginning of Period .................... $ 100.00
--------------
Income from Investment Operations
- ---------------------------------
Net Investment Income ................................. 0.99
Net Gains (Losses) on Securities (Realized and
Unrealized) ........................................ 1.49
--------------
Total from Investment Operations ................... 2.48
--------------
Less Distributions
- ------------------
Net Investment Income ................................. (1.02)
--------------
Net Asset Value, End of Period .......................... $ 101.46
==============
Total Return ............................................ 2.49%#
Net Assets, End of Period ............................... $318,167
Ratio of Expenses to Average Net Assets (1) ............. 1.86%*(a)(b)
Ratio of Net Investment Income to Average Net Assets .... 2.97%*(a)(b)
Portfolio Turnover Rate ................................. N/A
- ------
* Annualized
# Non-Annualized
(1) Represents the combined ratio for the Portfolio and its respective
pro-rata share of its Master Fund Series.
(a) Had certain waivers and reimbursements not been in effect, the ratios of
expenses and net investment income to average net assets would have been
27.51% and (22.68)%, respectively.
(b) Because of commencement of operation and related preliminary transaction
costs, these rates are not necessarily indicative of future rations.
N/A Refer to the respective Master Fund Series.
See accompanying Notes to Financial Statements
4
<PAGE>
DIMENSIONAL INVESTMENT GROUP INC.
NOTES TO FINANCIAL STATEMENTS
(UNAUDITED)
A. ORGANIZATION:
At May 31, 1995, Dimensional Investment Group Inc. (the "Fund") consisted
of eight portfolios, The DFA 6-10 Institutional Portfolio, U.S. Small Cap
Value Portfolio II, U.S. Large Cap Value Portfolio II, U.S. Large Cap Value
Portfolio III, DFA One-Year Fixed Income Portfolio II, The DFA International
Value Portfolio, DFA International Value Portfolio II and DFA International
Value Portfolio III (the "Portfolios"). The Fund is an open-end management
investment company registered under the Investment Company Act of 1940, whose
shares are offered to institutional investors, retirement plans, and clients
of registered investment advisors. The financial statements of The DFA
One-Year Fixed Income Portfolio (the "Portfolio") are presented herein, the
financial statements for the other Portfolios are presented elsewhere.
The Portfolio invests all of its assets in The DFA One-Year Fixed Income
Series (the "Series"), a corresponding series of The DFA Investment Trust
Company. At May 31, 1995, The Portfolio owned 1% of the outstanding shares of
The Series. The financial statements of the Series are included elsewhere in
this report and should be read in conjunction with the financial statements
of the Portfolio.
B. SIGNIFICANT ACCOUNTING POLICIES:
The following significant accounting policies are in conformity with
generally accepted accounting principles for investment companies. Such
policies are consistently followed by the Fund in preparation of its
financial statements.
1. Security Valuation: The shares of the Series held by the Portfolio are
valued at its respective daily Net Asset Value.
2. Federal Income Taxes: It is the Portfolio's intention to qualify as a
regulated investment company and distribute all of its taxable income.
Accordingly, no provision for Federal income tax is required in the financial
statements.
3. Other: Security transactions are accounted for on the date the
securities are purchased or sold. Costs used in determining realized gains
and losses on the sale of investment securities are those of specific
securities sold. Dividend income and distributions to shareholders are
recorded on the ex-dividend date. Expenses directly attributable to the
Portfolio or to the Series are directly charged. Common expenses are
allocated using methods determined by the Board of Directors.
C. INVESTMENT ADVISOR:
Dimensional Fund Advisors Inc. (the "Advisor") provides administrative
services to the Portfolio, including supervision of services provided by
others, providing information to the shareholders and to the Board of
Directors, and other administrative services. The Advisor provides investment
advisory services to the Series. For the period ended May 31, 1995, the
Portfolio's administrative fees were computed daily and paid monthly to the
Advisor based on an effective annual rate of 0.10 of 1%.
Certain officers of the Portfolio are also officers, directors and
shareholders of the Advisor.
During April, 1995, the Advisor began to waive its fees and reimburse the
Portfolio to the extent necessary to keep the annual combined expenses of the
Portfolio and its respective Master Fund to not more than 2.50% of average
daily net assets.
5
<PAGE>
D. INVESTMENTS:
At May 31, 1995, gross unrealized appreciation and depreciation for
financial reporting and federal income tax purposes of investment securities
was as follows:
Gross Unrealized Appreciation ....... $2,043
Gross Unrealized Depreciation ....... --
--------
Net ................................ $2,043
========
6
<PAGE>
STATEMENT OF NET ASSETS
THE DFA ONE-YEAR FIXED INCOME SERIES
MAY 31, 1995
(UNAUDITED)
<TABLE>
<CAPTION>
Face
Amount Value+
------------------ ------------------
(000)
<S> <C> <C> <C>
BONDS AND CERTIFICATES OF DEPOSIT -- (62.7%)
AT&T Capital Corp. Medium Term Notes
6.640%, 05/22/96 ......................................... $ 9,500 $ 9,561,047
AT&T Corp. Corporate Bonds ................................
4.500%, 02/15/96 ......................................... 6,000 5,934,180
Abbey National North America Medium Term Notes
7.620%, 12/22/95 ......................................... 17,000 17,153,391
American International Group, Inc. Medium Term Notes
7.700%, 03/15/96 ......................................... 12,200 12,346,058
Associates Corp. of North America Medium Term Notes
8.730%, 04/05/96 ......................................... 2,100 2,143,208
8.625%, 06/17/96 ......................................... 5,000 5,123,490
4.750%, 08/01/96 ......................................... 5,000 4,917,550
7.500%, 10/15/96 ......................................... 5,000 5,085,690
Bankers Trust N.Y., Inc. Corporate Bonds
4.700%, 07/01/96 ......................................... 11,200 11,000,875
Bayerische Landesbank Medium Term Notes
6.430%, 07/19/96 ......................................... 17,000 17,047,311
Bellsouth Capital Funding Medium Term Notes
7.550%, 11/29/96 ......................................... 3,000 3,058,641
Cola-Cola Co. Corporate Bonds
7.750%, 02/15/96 ......................................... 17,000 17,188,479
Deutsche Bank AG (New York)
7.498%, 01/21/97 ......................................... 9,000 9,178,389
Exxon Capital Corp. Corporate Bonds
7.750%, 02/14/96 ......................................... 17,000 17,187,748
Gannet Co., Inc. Corporate Bonds
9.550%, 02/01/96 ......................................... 3,300 3,373,217
Johnson & Johnson Medium Term Notes
8.000%, 03/20/96 ......................................... 7,000 7,101,549
KFW International Finance, Inc. Medium Term Notes
6.750%, 01/10/96 ......................................... 11,000 11,041,041
Merck & Co., Inc. Medium Term Notes
7.750%, 05/01/96 ......................................... 5,000 5,077,865
NBD Bank N.A. Bank Notes
4.150%, 01/31/96 ......................................... 5,000 4,939,510
7.850%, 01/21/97 ......................................... 12,000 12,303,060
Norinchukin Bank New York Certificate of Deposit
6.060%, 07/17/95 ......................................... 17,000 17,002,555
Norwest Corp. Medium Term Notes
7.750%, 12/31/96 ......................................... 7,000 7,160,020
7.875%, 01/30/97 ......................................... 10,000 10,272,370
Paccar Financial Corp. Medium Term Notes
4.500%, 07/01/96 ......................................... 5,000 4,912,730
4.800%, 08/20/96 ......................................... 5,000 4,921,035
5.150%, 11/15/96 ......................................... 3,000 2,957,970
7
<PAGE>
THE DFA ONE-YEAR FIXED INCOME SERIES
CONTINUED
Face
Amount Value+
------------------ ------------------
(000)
Pepsico, Inc. Medium Term Notes
7.220%, 11/15/96 ......................................... $ 7,000 $ 7,117,250
7.000%, 11/15/96 ......................................... 5,000 5,060,185
6.875%, 05/15/97 ......................................... 5,000 5,059,225
Province of Ontario Corporate Bonds
8.250%, 04/08/96 ......................................... 15,000 15,274,650
Rabobank Nederland Deposit Notes
6.040%, 01/25/96 ......................................... 4,000 4,000,828
6.390%, 06/25/96 ......................................... 4,000 4,011,852
Republic National Bank of New York Bank Notes
8.375%, 05/01/96 ......................................... 4,000 4,076,528
Sanwa Bank Certificate of Deposit
6.030%, 06/22/95 ......................................... 18,000 17,999,510
Shell Oil Co. Corporate Bonds
7.700%, 02/01/96 ......................................... 10,000 10,098,450
6.000%, 01/15/97 ......................................... 5,000 4,994,255
Smithkline Beecham Corp. Corporate Bonds
5.250%, 01/19/96 ......................................... 5,000 4,973,910
5.250%, 01/26/96 ......................................... 2,000 1,989,112
Society National Bank, Cleveland Deposit Notes
6.875%, 10/15/96 ......................................... 16,260 16,407,787
Texaco Capital, Inc. Medium Term Notes
9.000%, 11/15/96 ......................................... 5,000 5,191,745
Toyota Motor Credit Corp. Medium Term Notes
7.700%, 01/23/97 ......................................... 17,000 17,394,230
WMX Technologies, Inc. Corporate Bonds
4.875%, 06/15/96 ......................................... 15,000 14,812,890
Wachovia Bank Notes
7.150%, 11/07/96 ......................................... 7,000 7,088,767
5.400%, 03/14/97 ......................................... 10,000 9,883,710
Waste Management, Inc. Corporate Bonds
4.625%, 04/14/96 ......................................... 2,000 1,973,100
------------------
TOTAL BONDS AND CERTIFICATES OF DEPOSIT (Cost $382,984,864) 385,396,963
------------------
COMMERCIAL PAPER -- (28.8%)
ABN-Amro North America, Inc. C.P.
5.950%, 06/19/95 ......................................... 8,000 7,974,750
Beta Finance C.P.
5.940%, 06/09/95 ......................................... 6,000 5,991,015
6.020%, 06/23/95 ......................................... 3,000 2,988,538
5.940%, 07/17/95 ......................................... 7,500 7,441,641
Caisse Nationale des Telecommunicatioans C.P.
6.000%, 07/17/95 ......................................... 8,323 8,258,237
6.010%, 07/18/95 ......................................... 18,000 17,856,239
Cargill, Inc. C.P.
5.910%, 06/08/95 ......................................... 6,000 5,992,013
5.900%, 06/22/95 ......................................... 6,000 5,978,073
Ciesco L.P. C.P.
5.900%, 07/11/95 ......................................... 15,100 14,997,332
8
<PAGE>
THE DFA ONE-YEAR FIXED INCOME SERIES
CONTINUED
Face
Amount Value+
------------------ ------------------
(000)
Corporate Asset Funding Co. C.P.
5.980%, 06/09/95 ......................................... $ 4,000 $ 3,994,010
6.030%, 07/10/95 ......................................... 7,000 6,953,566
6.020%, 07/17/95 ......................................... 4,000 3,968,875
Deutsche Bank AG (New York) C.P.
5.920%, 06/14/95 ......................................... 7,000 6,983,694
Dreyfus (Louis) Corp. C.P.
6.020%, 06/06/95 ......................................... 1,800 1,798,203
6.000%, 06/06/95 ......................................... 3,000 2,997,005
6.020%, 06/12/95 ......................................... 6,000 5,988,020
6.010%, 06/21/95 ......................................... 7,000 6,975,581
Equipment Intermediation Partnership L.P. C.P.
6.000%, 06/05/95 ......................................... 3,000 2,997,504
5.970%, 06/05/95 ......................................... 13,171 13,160,042
Phillip Morris Companies, Inc. C.P.
6.000%, 06/09/95 ......................................... 4,000 3,993,980
6.000%, 06/14/95 ......................................... 4,000 3,990,635
Sheffield Receivables Corp. C.P.
5.950%, 06/13/95 ......................................... 6,000 5,987,021
6.000%, 07/19/95 ......................................... 6,000 5,951,326
Stanley Works C.P.
5.950%, 06/26/95 ......................................... 6,000 5,973,957
Toronto Dominion Bank C.P.
5.970%, 06/12/95 ......................................... 12,000 11,976,040
United Parcel Service C.P.
5.900%, 06/13/95 ......................................... 6,000 5,987,022
------------------
TOTAL COMMERCIAL PAPER (Cost $177,184,430) ................ 177,154,319
------------------
AGENCY OBLIGATIONS -- (3.2%)
Federal National Morgage Association .......................
6.940%, 03/17/97 ......................................... $ 5,000 $ 5,068,000
6.770%, 04/14/97 ......................................... 4,000 4,051,280
Student Loan Marketing Association
7.875%, 02/03/97 ......................................... 10,000 10,287,000
------------------
TOTAL AGENCY OBLIGATIONS (Cost $19,156,046) ............... 19,406,280
------------------
TEMPORARY CASH INVESTMENTS -- (1.2%)
Repurchase Agreement, PNC Securities Corp. 5.85%, 06/01/95
(Collateralized by U.S. Treasury Notes 7.50%, 12/31/96)
(Cost $7,411,000) ....................................... 7,411 7,411,000
------------------
TOTAL INVESTMENTS -- (95.9%) (Cost $586,736,340) .......... 589,368,562
------------------
OTHER ASSETS AND LIABILITIES -- (4.1%)
Other Assets ............................................ 25,511,074
Liabilities ............................................. (92,451)
------------------
25,418,623
------------------
NET ASSETS -- (100.0%) Applicable to 6,157,704 Outstanding
$.01 Par Value Shares (Unlimited Number of Shares
Authorized) ............................................. $614,787,185
==================
NET ASSET VALUE, OFFERING AND REDEMPTION PRICE PER SHARE .. $ 99.84
==================
</TABLE>
- ------
+See Note B to Financial Statements.
See accompanying Notes to Financial Statements
9
<PAGE>
THE DFA INVESTMENT TRUST COMPANY
THE DFA ONE-YEAR FIXED INCOME SERIES
STATEMENT OF OPERATIONS
FOR THE SIX MONTHS ENDED MAY 31, 1995
(UNAUDITED)
(AMOUNTS IN THOUSANDS)
<TABLE>
<CAPTION>
<S> <C>
Investment Income
Interest ............................................................... $18,835
---------
Expenses
Investment Advisory Services .......................................... 150
Accounting & Transfer Agent Fees ...................................... 82
Custodian's Fee ....................................................... 37
Legal Fees ............................................................ 5
Audit Fees ............................................................ 7
Shareholders' Reports ................................................. 5
Trustees' Fees and Expenses ........................................... 2
Other ................................................................. 11
---------
Total Expenses ..................................................... 299
---------
Net Investment Income ................................................. 18,536
---------
Net Realized and Unrealized Gain (Loss) on Investments
Net Realized Loss on Investment Securities .............................. (763)
Change in Unrealized Appreciation (Depreciation) of Investment Securities 9,541
---------
Net Gain on Investment Securities ...................................... 8,778
---------
Net Increase in Net Assets Resulting from Operations .................... $27,314
=========
</TABLE>
See accompanying Notes to Financial Statements
10
<PAGE>
THE DFA INVESTMENT TRUST COMPANY
THE DFA ONE-YEAR FIXED INCOME SERIES
STATEMENTS OF CHANGES IN NET ASSETS
(AMOUNTS IN THOUSANDS)
<TABLE>
<CAPTION>
Six Months
Ended Year Ended
May 31, Nov. 30
1995 1994
------------ ------------
(Unaudited)
<S> <C> <C>
Increase (Decrease) in Net Assets
Operations: .............................................................
Net Investment Income ................................................. $ 18,536 $ 27,413
Net Realized Gain (Loss) on Investment Securities ..................... (763) (5,023)
Change in Unrealized Appreciation (Depreciation) of Investment
Securities ......................................................... 9,541 (6,783)
------------ ------------
Net Increase (Decrease) in Net Assets Resulting from Operations .... 27,314 15,607
------------ ------------
Distributions From:
Net Investment Income ................................................. (18,163) (26,524)
Net Realized Gain ..................................................... -- (3,154)
------------ ------------
Total Distributions ................................................ (18,163) (29,678)
------------ ------------
Capital Share Transactions (1):
Shares Issued ......................................................... 90,814 205,242
Shares Issued in Lieu of Cash Distributions ........................... 13,462 23,866
Shares Redeemed ....................................................... (90,926) (231,179)
------------ ------------
Net Increase (Decrease) From Capital Share Transactions ............ 13,350 (2,071)
------------ ------------
Total Increase (Decrease) .......................................... 22,501 (16,142)
Net Assets
Beginning of Period ................................................... 592,286 608,428
------------ ------------
End of Period ......................................................... $614,787 $ 592,286
============ ============
(1) Shares Issued and Redeemed:
Shares Issued ......................................................... 921 2,064
Shares Issued in Lieu of Cash Distributions ........................... 136 241
Shares Redeemed ....................................................... (922) (2,332)
------------ ------------
135 (27)
============ ============
</TABLE>
See accompanying Notes to Financial Statements
11
<PAGE>
THE DFA INVESTMENT TRUST COMPANY
THE DFA ONE-YEAR FIXED INCOME SERIES
FINANCIAL HIGHLIGHTS
(FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD)
<TABLE>
<CAPTION>
Six Months
Ended Year Ended March 2 to
May 31, Nov. 30 Nov. 30
1995 1994 1993
------------ ------------ ------------
(Unaudited)
<S> <C> <C> <C>
Net Asset Value, Beginning of Period ..................... $ 98.35 $ 100.58 $ 100.00
------------ ------------ ------------
Income from Investment Operations
- ---------------------------------
Net Investment Income .................................. 3.04 4.41 3.09
Net Gains (Losses) on Securities (Realized and
Unrealized) ......................................... 1.44 (1.86) 0.26
------------ ------------ ------------
Total from Investment Operations .................... 4.48 2.55 3.35
------------ ------------ ------------
Less Distributions
- ------------------
Net Investment Income .................................. (2.99) (4.26) (2.77)
Net Realized Gains ..................................... -- (0.52) --
------------ ------------ ------------
Total Distributions ................................. (2.99) (4.78) (2.77)
------------ ------------ ------------
Net Asset Value, End of Period ........................... $ 99.84 $ 98.35 $ 100.58
============ ============ ============
Total Return ............................................. 4.64%# 2.61% 3.39%#
Net Assets, End of Period (thousands). ................... $614,787 $592,286 $608,428
Ratio of Expenses to Average Net Assets .................. 0.10%* 0.10% 0.10%*
Ratio of Net Investment Income to Average Net Assets ..... 6.18%* 4.41% 3.80%*
Portfolio Turnover Rate. ................................. 95.70%* 140.82% 111.67%*
</TABLE>
- ------
*Annualized
#Non-Annualized
See accompanying Notes to Financial Statements
12
<PAGE>
THE DFA INVESTMENT TRUST COMPANY
NOTES TO FINANCIAL STATEMENTS
(UNAUDITED)
A. ORGANIZATION:
The DFA Investment Trust Company (the "Trust") is an open-end management
investment company registered under the Investment Company Act of 1940. At
May 31, 1995, The Trust consisted of seven investment portfolios: The U.S.
6-10 Small Company Series, The U.S. Large Company Series, The U.S. Small Cap
Value Series, The U.S. Large Cap Value Series, The DFA One-Year Fixed Income
Series, The DFA International Value Series and The Emerging Markets Series.
These financial statements relate solely to The DFA One-Year Fixed Income
Series (the "Series").
On February 8, 1993, The DFA One-Year Fixed Income Portfolio of DFA
Investment Dimensions Group Inc. (the "Fund") transferred its investable
assets for shares with equal values of a corresponding Series of the Trust
(the "Exchange").
The DFA One-Year Fixed Income Portfolio II invests solely in the Series.
The Series also issues its shares to other investors.
B. SIGNIFICANT ACCOUNTING POLICIES:
The following significant accounting policies are in conformity with
generally accepted accounting principles for investment companies. Such
policies are consistently followed by the Trust in preparation of its
financial statements.
1. Security Valuation: Securities held by the Series are valued on the
basis of prices provided by a pricing service when such prices are believed
to reflect the fair market value of such securities. Securities for which
market quotations are not readily available are valued in good faith at fair
value using methods determined by the Board of Directors.
2. Federal Income Taxes: It is the Series intention to continue to qualify
as a regulated investment company and distribute all of its taxable income.
Accordingly, no provision for Federal taxes is required in the financial
statements.
3. Repurchase Agreements: The Series may purchase money market instruments
subject to the seller's agreement to repurchase them at an agreed upon date
and price. The seller will be required on a daily basis to maintain the value
of the collateral subject to the agreement at not less than the repurchase
price (including accrued interest). The agreements are conditioned upon the
collateral being deposited under the Federal Reserve book-entry system or
with the Fund's custodian or a third party sub-custodian. All repurchase
agreements were entered into on May 31, 1995.
4. Reclassifications: As of December 1, 1993, the Series implemented AICPA
Statement of Position 93-2 -- Determination, Disclosure and Financial
Statement Presentation of Income, Capital Gain, and Return of Capital
Distributions by Investment Companies. Adoption of this standard results in
the reclassification to paid-in capital of permanent differences between tax
and financial reporting of net investment income and net realized
gain/(loss). The change has had no material effect on paid-in capital or
other components of net assets at December 1, 1993. Distributions to
shareholders and net asset values were not affected by this change.
5. Other: Security transactions are accounted for on the date the
securities are purchased or sold. Costs used in determining realized gains
and losses on the sale of investment securities are those of specific
securities sold. Dividend income and distributions to shareholders are
recorded on the ex-dividend date. Interest income is recorded on the accrual
basis. Discount and premium on securities purchased are amortized over the
lives of the respective securities. Expenses directly attribute to a Series
are directly charged. Common expenses are allocated using methods determined
by the Board of Directors.
13
<PAGE>
C. INVESTMENT ADVISOR:
Dimensional Fund Advisors Inc. (the "Advisor") provides investment
advisory services to the Series. For the period ended May 31, 1995, the
Series' advisory fees were computed daily and paid monthly to the Advisor
based on an effective annual rate of 0.05 of 1%.
Certain officers of the Series are also officers, directors and
shareholders of the Advisor.
D. PURCHASES AND SALES OF SECURITIES:
For the six months ended May 31, 1995, the Series made the following
purchases and sales of investment securities (amounts in thousands):
Other
U.S. Government Investment
Securities Securities
--------------- ------------
Purchases .. $38,002 $153,739
Sales ...... 77,712 146,284
E. INVESTMENT TRANSACTIONS:
At May 31, 1995, gross unrealized appreciation and depreciation for
financial reporting and federal income tax purposes of investment securities
was as follows (amounts in thousands):
Gross Unrealized Appreciation $3,172
Gross Unrealized Depreciation (540)
--------
Net ......................... $2,632
========
At November 30, 1994, the Series had a capital loss carryover for federal
income tax purposes of approximately $5,023,000 which expires on November 30,
2002.
At May 31, 1995, the unrealized appreciation (depreciation) for the Series
includes approximately $(1,705,000) of unrealized appreciation (depreciation)
at time of tax-free Exchange.
F. COMPONENTS OF NET ASSETS:
At May 31, 1995, net assets consisted of (amounts in thousands):
Paid-In Capital ................................ $614,780
Undistributed Net Investment Income ............ 3,169
Accumulated Net Realized Loss .................. (5,794)
Unrealized Appreciation of Investment Securities 2,632
----------
$614,787
==========
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