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- --------------------------------------------------------------------------------
Dimensional Investment Group Inc.
Emerging Markets Portfolio II
Semi-Annual
Report
Six Months Ended May 31, 1998
(Unaudited)
-------------------------------------
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DIMENSIONAL INVESTMENT GROUP INC.
EMERGING MARKETS PORTFOLIO II
SEMI-ANNUAL REPORT
(UNAUDITED)
TABLE OF CONTENTS
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PAGE
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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 EMERGING MARKETS SERIES
Statement of Net Assets............................................. 7-15
Statement of Operations............................................. 16
Statements of Changes in Net Assets................................. 17
Financial Highlights................................................ 18
Notes to Financial Statements....................................... 19-20
</TABLE>
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.
EMERGING MARKETS PORTFOLIO II
STATEMENT OF ASSETS AND LIABILITIES
MAY 31, 1998
(UNAUDITED)
(AMOUNTS IN THOUSANDS, EXCEPT SHARE AMOUNTS)
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ASSETS:
Investment in The Emerging Markets Series of The DFA Investment Trust Company
(Cost $12,252)++ at Value............................................................ $ 8,746
Receivable from Sponsor................................................................ 33
Receivable for Fund Share.............................................................. 39
Prepaid Expenses and Other Assets...................................................... 34
-----------
Total Assets......................................................................... 8,852
-----------
LIABILITIES:
Payable for Investment Securities Purchased............................................ 39
Accrued Expenses and Other Liabilities................................................. 23
-----------
Total Liabilities.................................................................... 62
-----------
NET ASSETS............................................................................... $ 8,790
-----------
-----------
SHARES OUTSTANDING, $.01 PAR VALUE
(Authorized 100,000,000)............................................................... 1,223,386
-----------
-----------
NET ASSET VALUE, OFFERING AND REDEMPTION PRICE PER SHARE................................. $ 7.18
-----------
-----------
NET ASSETS CONSIST OF:
Paid-In Capital........................................................................ $ 12,421
Accumulated Net Investment Loss........................................................ (17)
Accumulated Net Realized Loss.......................................................... (88)
Accumulated Net Realized Foreign Exchange Loss......................................... (20)
Unrealized Depreciation of Investment Securities....................................... (3,506)
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Total Net Assets..................................................................... $ 8,790
-----------
-----------
</TABLE>
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++ Approximates cost for federal income tax purposes.
See accompanying Notes to Financial Statements.
1
<PAGE>
DIMENSIONAL INVESTMENT GROUP INC.
EMERGING MARKETS PORTFOLIO II
STATEMENT OF OPERATIONS
FOR THE SIX MONTHS ENDED MAY 31, 1998
(UNAUDITED)
(AMOUNTS IN THOUSANDS)
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INVESTMENT INCOME
Net Investment Income from The DFA Investment Trust Company........................... $ 102
---------
EXPENSES
Administrative Services............................................................... 18
Accounting & Transfer Agent Fees...................................................... 19
Legal Fees............................................................................ 1
Filing Fees........................................................................... 3
Shareholders' Reports................................................................. 10
Organization Costs.................................................................... 3
Other................................................................................. 2
---------
Total Expenses.................................................................... 56
Less: Fees Waived..................................................................... (18)
---------
Net Expenses...................................................................... 38
---------
NET INVESTMENT INCOME................................................................. 64
---------
NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS
Net Realized Loss on Investment Securities................................................ (87)
Net Realized Loss on Foreign Currency Transactions........................................ (16)
Change in Unrealized Appreciation (Depreciation) of:
Investment Securities................................................................. (312)
Translation of Foreign Currency Denominated Amounts................................... 1
---------
NET LOSS ON INVESTMENT SECURITIES..................................................... (414)
---------
NET DECREASE IN NET ASSETS RESULTING FROM OPERATIONS...................................... $ (350)
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---------
</TABLE>
See accompanying Notes to Financial Statements.
2
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DIMENSIONAL INVESTMENT GROUP INC.
EMERGING MARKETS PORTFOLIO II
STATEMENTS OF CHANGES IN NET ASSETS
(AMOUNTS IN THOUSANDS)
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SIX MONTHS AUG. 15
ENDED TO
MAY 31, NOV. 30,
1998 1997
------------ ---------
(UNAUDITED)
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INCREASE (DECREASE) IN NET ASSETS
Operations:
Net Investment Income (Loss)............................................................. $ 64 $ (7)
Net Realized Gain (Loss) on Investment Securities........................................ (87) 1
Net Realized Loss on Foreign Currency Transactions....................................... (16) (4)
Change in Unrealized Appreciation (Depreciation) of:
Investment Securities................................................................ (312) (3,194)
Translation of Foreign Currency Denominated Amounts.................................. 1 (1)
------------ ---------
Net Decrease in Net Assets Resulting from Operations................................. (350) (3,205)
------------ ---------
Distributions From:
Net Investment Income.................................................................... (74) --
Net Realized Gains....................................................................... (2) --
------------ ---------
Total Distributions.................................................................. (76) --
------------ ---------
Capital Share Transactions (1):
Shares Issued............................................................................ 1,337 13,077
Shares Issued in Lieu of Cash Distributions.............................................. 76 --
Shares Redeemed.......................................................................... (1,116) (1,058)
------------ ---------
Net Increase From Capital Share Transactions......................................... 297 12,019
------------ ---------
Capital Contribution from Sponsor............................................................ 61 44
------------ ---------
Total Increase (Decrease)............................................................ (68) 8,858
NET ASSETS
Beginning of Period...................................................................... 8,858 --
------------ ---------
End of Period............................................................................ $ 8,790 $ 8,858
------------ ---------
------------ ---------
(1) SHARES ISSUED AND REDEEMED:
Shares Issued............................................................................ 179 1,305
Shares Issued in Lieu of Cash Distributions.............................................. 11 --
Shares Redeemed.......................................................................... (148) (124)
------------ ---------
42 1,181
------------ ---------
------------ ---------
</TABLE>
See accompanying Notes to Financial Statements.
3
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DIMENSIONAL INVESTMENT GROUP INC.
EMERGING MARKETS PORTFOLIO II
FINANCIAL HIGHLIGHTS
(FOR A SHARE OUTSTANDING THROUGHOUT THE PERIOD)
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SIX MONTHS AUG. 15
ENDED TO
MAY 31, NOV. 30,
1998 1997
---------- ----------
(UNAUDITED)
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Net Asset Value, Beginning of Period.......................................................... $ 7.50 $ 10.00
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INCOME FROM INVESTMENT OPERATIONS
Net Investment Income (Loss)................................................................ 0.05 (0.01)
Net Gains (Losses) on Securities (Realized and Unrealized).................................. (0.31) (2.49)
---------- ----------
Total from Investment Operations............................................................ (0.26) (2.50)
---------- ----------
LESS DISTRIBUTIONS
Net Investment Income....................................................................... (0.06) --
Net Realized Gains.......................................................................... -- --
---------- ----------
Total Distributions......................................................................... (0.06) --
---------- ----------
Net Asset Value, End of Period................................................................ $ 7.18 $ 7.50
---------- ----------
---------- ----------
Total Return.................................................................................. (3.39)%# (25.00)%#
Net Assets, End of Period (thousands)......................................................... $ 8,790 $ 8,858
Ratio of Expenses to Average Net Assets (1)................................................. 0.81%*(a) 1.35%*(a)
Ratio of Net Investment Income to Average Net Assets........................................ 1.39%*(a) (0.20)%*(a)
Portfolio Turnover Rate..................................................................... N/A N/A
Average Commission Rate..................................................................... N/A N/A
Portfolio Turnover Rate of Master Fund Series............................................... 14.13%* 0.54%*(b)
Average Commission Rate of Master Fund Series............................................... $ 0.0013 $ 0.0010(b)
</TABLE>
- --------------
* 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 not been in effect, the ratio of expenses to average
net assets for the periods ended May 31, 1998 and November 30, 1997 would
have been 1.21% and 1.75% and the ratio of net investment income to average
net assets for the periods ended May 31, 1998 and November 30, 1997 would
have been 0.99% and (0.60)%. Because of commencement of operations and
related preliminary transaction costs, these ratios are not necessarily
indicative of future ratios. Additionally, the plan's sponsor has
voluntarily contributed to the Portfolio an amount equal to that portion of
the aggregate fees and expenses incurred by the Portfolio relating to the
plan's investment.
(b) Items calculated for the year ended November 30, 1997.
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:
Dimensional Investment Group Inc. (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 Fund currently offers thirteen portfolios,
of which the Emerging Markets Portfolio II (the "Portfolio") is presented in
this report.
The Portfolio invests all of its assets in The Emerging Markets Series (the
"Series") a corresponding series of The DFA Investment Trust Company. At May 31,
1998, the Portfolio owned 4% 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. The preparation of financial statements in accordance with generally
accepted accounting principles may require management to make estimates and
assumptions that affect the reported amounts and disclosures in the financial
statements. Actual results could differ from those estimates.
1. SECURITY VALUATION: The Portfolio's investment reflects its
proportionate interest in the net assets of the Series.
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. ("DFA" or 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 six months ended May 31, 1998, the
Portfolio's administrative fees were computed daily and paid monthly to the
Advisor based on an effective annual rate of 0.40 of 1% of the first $50 million
of average net assets.
Certain officers of the Portfolio are also officers, directors and
shareholders of the Advisor.
Effective August 1, 1997, the Advisor has agreed to waive its fees.
In addition, each sponsor of a benefit plan which invests in the Portfolio
has agreed to make a voluntary monthly contribution to the Portfolio in an
amount equal to that portion of the aggregate fees and expenses incurred by the
Portfolio relating to the benefit plan's investment. Such contributions are made
in accordance with the sponsor's practice of bearing the expenses of
administering the benefit plan's investments and are recorded as additions to
capital.
5
<PAGE>
D. INVESTMENTS:
At May 31, 1998, gross unrealized appreciation and depreciation for
financial reporting purposes of investment securities was as follows (amounts in
thousands):
<TABLE>
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Gross Unrealized Appreciation............................ $ 35
Gross Unrealized Depreciation............................ (3,541)
---------
Net...................................................... $ (3,506)
---------
---------
</TABLE>
E. LINE OF CREDIT:
The Fund, together with other DFA-advised portfolios, has entered into a $50
million unsecured line of credit with its domestic custodian bank. Each
portfolio is permitted to borrow, subject to its investment limitations, up to a
maximum of $50 million. Borrowings under the line are charged interest at the
current overnight federal funds rate plus a variable rate determined at the date
of borrowing. Each portfolio is individually, and not jointly liable for its
particular advances under the line. There is no commitment fee on the unused
portion of the line of credit. There were no borrowings under the line of credit
by the Portfolio during the six months ended May 31, 1998.
6
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THE DFA INVESTMENT TRUST COMPANY
THE EMERGING MARKETS SERIES
STATEMENT OF NET ASSETS
MAY 31, 1998
(UNAUDITED)
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SHARES VALUE+
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PORTUGAL -- (15.6%)
COMMON STOCKS -- (15.3%)
BCP (Banco Comercial Portugues SA).................... 156,339 $ 5,182,450
*BCP (Banco Comercial Portugues SA) Em 98............. 30,918 1,008,796
Banco Espirito Santo e Comercial de Lisboa............ 96,900 3,414,469
*Banco Espirito Santo e Comercial de Lisboa Em 98..... 12,112 416,833
Banco Pinto & Sotto Mayor SA.......................... 116,100 2,827,888
Banco Totta & Acores SA............................... 62,600 2,319,407
Cimpor Cimentos de Portugal SA........................ 28,685 1,099,762
*Companhia de Seguros Mundial Confianca SA............ 50,700 1,563,099
Companhia de Seguros Tranquilidade SA................. 20,500 685,393
Corticeira Amorim Sociedad Gestora Participacoes
Sociais SA.......................................... 15,000 325,569
EFACEC (Empresa Fabril de Maquinas Electricas)........ 10,500 115,100
Engil Sociedade Gestora de Participacoes Sociais SA... 15,200 175,702
*Filmes Lusomundo SA.................................. 8,300 125,103
*Inparsa Industrias e Participacoes S.G.P.S. SA....... 26,162 1,194,604
Investimentos Participacoes e Gestao SA Inapa......... 22,300 285,885
Jeronimo Martins (Estabelecimentos Jeronimo Martins &
Filho Administracao e Participacoes Financeiros
SA)................................................. 78,595 3,551,743
*Lusotur Sociedad Financeira de Turismo SA............ 5,500 87,391
Mague-Gestao e Participacoes SA....................... 5,200 198,010
Modelo Continente SGPS SA............................. 39,000 3,033,428
Portucel Industrial Empresa Produtora de Celulose
SA.................................................. 40,200 348,569
Portugal Telecom SA................................... 66,928 3,521,560
Salvador Caetano Industrias Metalurgicas e Veiculos de
Transporte SA....................................... 8,164 210,309
*Sociedad Construcoes Soares da Costa SA.............. 9,730 90,394
Sociedade de Investimento e Gestao SGPS SA............ 24,700 676,221
*Sonae Industria-Sociedade Gestora de Participacoes
Sociais SA.......................................... 32,483 549,068
Sonae Investimentos Sociedade Gestora de Participacoes
Sociais SA.......................................... 41,700 2,399,835
Uniceruniao Cervejeira SA............................. 20,400 467,260
------------
TOTAL COMMON STOCKS
(Cost $14,108,887)................................... 35,873,848
------------
<CAPTION>
SHARES VALUE+
------------ ------------
<S> <C> <C>
RIGHTS/WARRANTS -- (0.3%)
*Banco Espirito Santo e Comercial de Lisboa Rights
06/23/98
(Cost $0)........................................... 96,900 $ 682,894
------------
INVESTMENT IN
CURRENCY -- (0.0%)
*Portuguese Escudos
(Cost $5,869)....................................... 5,991
------------
TOTAL -- PORTUGAL
(Cost $14,114,756)................................... 36,562,733
------------
ISRAEL -- (11.3%)
COMMON STOCKS -- (11.3%)
*Africa-Israel Investments, Ltd....................... 2,840 179,519
*Africa-Israel Investments, Ltd....................... 155 89,621
Agis Industries (1983), Ltd........................... 21,736 151,075
American Israeli Paper Mills, Ltd..................... 3,291 131,660
Bank Hapoalim B.M..................................... 1,196,240 3,676,015
*Bank Leumi Le-Israel................................. 1,373,369 2,773,466
Bezek, Ltd............................................ 701,438 2,249,552
*Blue Square Chain Stores Properties Investment....... 29,303 359,227
CLAL Electronics Industries, Ltd...................... 3,579 548,440
CLAL Industries, Ltd.................................. 135,350 759,261
CLAL Insurance, Ltd................................... 38,684 461,527
CLAL Israel, Ltd...................................... 2,960,726 874,986
Delek Isreal.......................................... 8,643 420,982
*Elbit Medical Imaging................................ 17,319 138,384
Elbit Systems, Ltd.................................... 17,319 232,693
Elbit, Ltd............................................ 17,320 49,717
*Elite Industries, Ltd................................ 5,700 184,050
Elron Electronic Industries, Ltd...................... 19,701 339,098
First International Bank of Israel.................... 3,472 547,244
First International Bank of Israel.................... 486 375,625
IDB Bankholding Corp., Ltd............................ 36,578 913,849
IDB Development Corp., Ltd. Series A.................. 43,928 1,144,347
Industrial Building Corp., Ltd........................ 277,150 462,619
Israel Chemicals, Ltd................................. 1,165,326 1,476,412
*Israel Corp. Series A................................ 5,500 424,415
Koor Industries, Ltd.................................. 16,466 2,059,129
*Leumi Holdings Insurance............................. 279,107 187,882
*Makhteshim Chemical Works, Ltd....................... 56,129 465,382
Matav Cable Israel.................................... 19,027 193,163
Osem Investment, Ltd.................................. 77,343 384,340
Property and Building Corp., Ltd...................... 3,973 356,592
Super-Sol, Ltd. Series B.............................. 192,400 676,531
Tadiran, Ltd.......................................... 17,306 693,804
Tambour............................................... 26,898 49,314
Teva Pharmaceutical Industries, Ltd................... 60,410 2,474,627
------------
TOTAL -- ISRAEL
(Cost $19,808,692)................................... 26,504,548
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</TABLE>
7
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THE EMERGING MARKETS SERIES
CONTINUED
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SHARES VALUE+
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TURKEY -- (10.3%)
COMMON STOCKS -- (10.3%)
Akbank................................................ 62,238,401 $ 1,831,108
*Akbank Issue 98...................................... 35,009,100 867,367
Akcansa Cimento Sanayi ve Ticaret SA.................. 14,800,650 458,366
Aksa.................................................. 7,151,119 265,759
Aksigorta A.S......................................... 4,050,000 246,932
Aktas Elektrik Ticaret A.S............................ 685,000 357,986
Alarko Holding........................................ 717,620 200,018
Alarko Sanayii ve Ticaret A.S......................... 1,124,999 75,125
Arcelik A.S........................................... 15,754,208 655,612
Aygaz................................................. 1,944,480 308,624
Bekoteknik Sanayi A.S................................. 4,664,719 122,794
Bossa Ticaret ve Sanayi Isletmeleri A.S............... 8,625,000 88,480
Brisa Bridgestone Sanbanci Lastik San & Tic A.S....... 6,202,000 324,121
CIMSA A.S. (Cimento Sanayi ve Ticaret)................ 2,955,000 171,589
*Cimentas A.S......................................... 1,037,032 60,218
Cukurova Elektrik A.S................................. 389,000 1,008,942
Dogan Sirketler Grubu Holdings A.S.................... 9,239,050 545,430
Doktas................................................ 272,000 10,793
EGE Biracilik ve Malt Sanayii A.S..................... 3,062,408 343,798
*Eczacibasi Ilac...................................... 2,130,940 103,115
Enka Holding.......................................... 806,993 406,121
Erciyas Biracilik..................................... 2,333,160 352,250
*Eregli Demir ve Celik Fabrikalari Turk A.S........... 4,929,000 686,915
*Es Kisehir Bankasi Esbank............................ 7,200,747 47,388
Good Year Lastikleri A.S.............................. 3,272,500 212,196
Guney Biracilik....................................... 1,004,640 92,367
Hurriyet Gazette...................................... 8,983,000 326,882
*Ihlas Holding........................................ 1,348,057 185,259
*Izmir Demir Celik.................................... 4,092,600 32,875
Kartonsan............................................. 1,417,500 120,722
Kepez Elektrik Ticaret A.S............................ 93,000 248,413
Koc Holding A.S....................................... 12,466,998 2,364,830
Kordsa Kord Bezi Sanayi ve Ticaret A.S................ 1,771,000 263,950
Migros Turk A.S....................................... 734,225 682,154
*Netas Northern Electric Telekomunikasyon A.S......... 970,000 285,382
Otosan Otomobil A.S................................... 1,026,000 575,913
Peg Profilo A.S....................................... 2,024,497 107,761
*Raks Elektroniks A.S................................. 216,000 83,617
Sarkuysan Elektrolitik Bakir Sanayi A.S............... 794,000 63,779
*T. Tuborg Bira ve Malt Sanayi A.S.................... 390,000 10,719
Tat Konserve.......................................... 1,782,544 60,725
Teletas Telekomunikasyon Endustri Ticaret A.S......... 1,400,000 178,848
*Tofas Turk Otomobil Fabrikasi A.S.................... 9,802,375 407,926
Trakya Cam Sanayii A.S................................ 8,270,120 300,941
Turcas Petrolculuk A.S................................ 1,691,018 68,081
Turk Demir Dokum...................................... 4,164,986 70,137
Turk Siemens Kablo ve Elektrik Sanayi A.S............. 420,500 24,417
SHARES VALUE+
------------ ------------
Turk Sise Cam......................................... 12,475,592 $ 405,679
*Turkiye Garanti Bankasi A.S.......................... 28,800,442 1,226,404
Turkiye Is Bankasi A.S. Series C...................... 85,367,625 3,469,959
*Turkiye Is Bankasi A.S. Series C Issue 98............ 15,064,875 588,989
USAS (Ucak Servisi A.S.).............................. 42,500 105,296
*Vestel Elektronik Sanayi Ticaret A.S................. 3,112,000 421,647
Yapi ve Kredi Bankasi A.S............................. 64,956,045 1,257,278
*Yapi ve Kredi Bankasi A.S. Issue 98.................. 18,692,387 332,862
------------
TOTAL -- TURKEY
(Cost $12,212,244)................................... 24,114,859
------------
ARGENTINA -- (9.0%)
COMMON STOCKS -- (9.0%)
*Acindar Industria Argentina de Aceros SA Series B.... 164,000 340,467
*Alpargatas SA Industrial y Comercial................. 150,000 33,316
Astra Cia Argentina de Petroleos SA................... 336,690 532,231
Bagley y Cia, Ltd. SA Series B........................ 106,228 212,560
Banco de Galicia y Buenos Aires SA Series A........... 247,526 1,271,669
*Banco del Sud Sociedad Anonima Series B.............. 29,000 242,269
Banco Frances del Rio de la Plata SA.................. 123,936 949,815
*Buenos Aires Embotelladora SA Series B............... 100 7,604
CIADEA SA............................................. 76,559 157,025
Capex SA Series A..................................... 18,000 72,035
*Celulosa Argentina SA Series B....................... 75,000 16,133
Central Costanera SA Series B......................... 20,000 58,028
Central Puerto SA Series B............................ 16,000 44,021
Corcemar SA Series B.................................. 19,226 113,489
Garovaglio y Zorraquin SA............................. 28,000 56,588
*Indupa SA Industrial y Comercial..................... 180,366 155,191
Irsa Inversiones y Representaciones SA................ 73,979 262,014
Juan Minetti SA....................................... 94,039 348,115
Ledesma SA............................................ 135,378 117,837
Metrogas SA Series B.................................. 403,115 362,981
Molinos Rio de la Plata SA Series B................... 125,287 322,145
Naviera Perez Companc SA Series B..................... 540,429 2,979,224
Nobleza-Piccardo Sdad Industrial Comercial y
Financiera Pica..................................... 25,542 103,496
*Sevel Argentina SA Series C.......................... 79,033 72,747
Siderar SAIC Series A................................. 21,280 86,375
Siderca SA Series A................................... 714,907 1,444,820
Sociedad Comercial del Plata.......................... 187,740 202,859
Telecom Argentina Stet-France SA Series B............. 317,000 1,966,363
Telefonica de Argentina SA Series B................... 738,000 2,414,443
Transportadora de Gas del Sur SA Series B............. 398,000 860,101
YPF Sociedad Anonima Yacimientos Petroliferos Fiscales
Series D............................................ 165,000 5,134,016
------------
TOTAL COMMON STOCKS
(Cost $18,371,680)................................... 20,939,977
------------
</TABLE>
8
<PAGE>
THE EMERGING MARKETS SERIES
CONTINUED
<TABLE>
<CAPTION>
SHARES VALUE+
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<S> <C> <C>
RIGHTS/WARRANTS -- (0.0%)
*Acindar Industria Argentina de Aceros SA Series B
Rights 06/09/98
(Cost $0)........................................... 164,000 $ 0
------------
TOTAL -- ARGENTINA
(Cost $18,371,680)................................... 20,939,977
------------
PHILIPPINES -- (8.9%)
COMMON STOCKS -- (8.9%)
*Aboitiz Equity Ventures, Inc......................... 2,376,400 107,380
Ayala Land, Inc....................................... 6,847,980 2,329,539
Bacnotan Consolidated Industries, Inc................. 54,567 83,357
*Belle Corp........................................... 4,916,000 174,174
*C & P Homes, Inc..................................... 10,306,500 793,824
*Centennial City, Inc................................. 3,285,000 32,049
Far East Bank and Trust Co. (Foreign)................. 1,082,200 1,278,077
*Fil-Estate Land, Inc................................. 1,252,000 46,287
*Filinvest Land, Inc.................................. 9,822,000 731,290
Guoco Holdings (Philippines), Inc..................... 1,080,000 24,401
*International Container Terminal Services, Inc....... 706,500 101,576
Ionics Circuits, Inc.................................. 1,040,850 447,605
La Tondena Distillers, Inc............................ 453,200 319,974
*Megaworld Properties & Holdings, Inc................. 1,695,000 32,638
*Metro Pacific Corp................................... 6,173,860 256,781
Metropolitan Bank & Trust Co.......................... 433,871 3,146,811
*Mondragon International Philippines, Inc............. 408,840 9,237
*Petron Corp.......................................... 18,813,000 2,704,816
Philippine Long Distance Telephone Co................. 126,940 3,259,043
*Philippine National Bank............................. 259,975 493,918
*Philippine Savings Bank.............................. 125,000 63,382
*Pilipino Telephone Corp.............................. 628,500 66,158
RFM Corp.............................................. 1,843,000 260,243
*Republic Glass Holding Corp.......................... 331,250 9,015
SM Prime Holdings, Inc................................ 18,674,000 3,308,096
*Security Bank Corp................................... 146,820 72,562
*Southeast Asia Cement Holdings, Inc.................. 3,098,780 42,961
*Union Bank of the Philippines........................ 421,500 175,850
Universal Robina Corp................................. 2,871,000 515,968
------------
TOTAL COMMON STOCKS
(Cost $39,745,756)................................... 20,887,012
------------
PREFERRED STOCKS -- (0.0%)
RFM Corp.
(Cost $31,501)...................................... 177,090 24,097
------------
TOTAL -- PHILIPPINES
(Cost $39,777,257)................................... 20,911,109
------------
MEXICO -- (8.9%)
COMMON STOCKS -- (8.9%)
*Altos Hornos de Mexico S.A........................... 97,000 140,834
Apasco S.A. de C.V.................................... 69,000 420,291
Carso Global Telecom S.A. de C.V. Telecom Series A1... 192,000 622,865
*Cementos de Mexico S.A. de C.V. Series B............. 226,000 1,110,001
SHARES VALUE+
------------ ------------
Cifra S.A. de C.V. Series C........................... 417,000 $ 585,576
Cifra S.A. de C.V. Series V........................... 137,180 198,549
Controladora Comercial Mexicana S.A. de C.V. Series
B................................................... 175,000 170,712
Desc S.A. de C.V. Series B............................ 59,000 329,933
Desc S.A. de C.V. Series C............................ 1,381 7,832
El Puerto de Liverpool S.A. Series C1................. 339,500 462,113
Empresas ICA Sociedad Controladora S.A. de C.V........ 198,000 343,624
*Empresas la Moderna S.A. de C.V. Series A............ 120,000 571,686
Fomento Economico Mexicano S.A. de C.V. Series B...... 135,000 937,156
*Gruma S.A. de C.V. Series B.......................... 88,924 172,482
Grupo Carso S.A. de C.V. Series A-1................... 203,000 1,033,878
Grupo Celanese S.A. Series B-1........................ 140,000 329,910
*Grupo Financiero Banamex Accival S.A. de C.V. Series
B................................................... 377,000 932,234
*Grupo Financiero Banamex Accival S.A. de C.V. Series
L................................................... 13,187 28,420
Grupo Financiero Bancomer S.A. de C.V. Series B....... 1,246,380 622,057
Grupo Financiero Bancomer S.A. de C.V. Series L....... 7,792 2,665
*Grupo Financiero GBM Atlantico S.A. de C.V. Series
B................................................... 30,000 20,417
Grupo Financiero Inbursa-C............................ 239,699 633,504
*Grupo Financiero Santander Mexicano S.A. de C.V.
Sanmex Series B..................................... 24,757 21,342
*Grupo Financiero Serfin S.A. de C.V. Series B........ 249,102 38,145
*Grupo Gigante S.A. Series B.......................... 341,400 143,282
Grupo Industrial Alfa S.A. Series A................... 150,290 704,056
Grupo Industrial Bimbo S.A. de C.V. Series A.......... 392,000 898,182
Grupo Industrial Maseca S.A. de C.V. Series B......... 229,000 130,397
Grupo Mexico S.A. de C.V. Series B.................... 172,000 557,984
Grupo Modelo S.A. de C.V. Series C.................... 78,000 712,225
*Grupo Televisa S.A. (Certificate Representing Series
A, Series D & Series L)............................. 70,000 1,375,222
Hylsamex S.A. de C.V. Series B........................ 60,000 211,660
Industrias Penoles S.A. de C.V........................ 103,000 352,835
Kimberly Clark de Mexico S.A. de C.V. Series A........ 225,000 939,198
Organizacion Soriana S.A. de C.V. Series B............ 150,000 482,360
*Seguros Comercial America S.A. de C.V. Series B...... 63,000 219,742
Telefonos de Mexico S.A. Series A..................... 50,000 121,370
Telefonos de Mexico S.A. Series L..................... 1,521,000 3,623,059
*Tolmex S.A. de C.V. Series B-2....................... 16,000 78,040
Tubos de Acero de Mexico S.A.......................... 17,000 252,608
Vitro S.A............................................. 121,600 342,068
------------
TOTAL COMMON STOCKS
(Cost $16,769,833)................................... 20,880,514
------------
</TABLE>
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CONTINUED
<TABLE>
<CAPTION>
SHARES VALUE+
------------ ------------
<S> <C> <C>
RIGHTS/WARRANTS -- (0.0%)
*Cementos de Mexico S.A. de C.V. Series B Rights
06/18/98
(Cost $0)........................................... 226,000 $ 0
------------
TOTAL -- MEXICO
(Cost $16,769,833)................................... 20,880,514
------------
BRAZIL -- (8.4%)
PREFERRED STOCKS -- (4.6%)
Aracruz Celulose SA Series B.......................... 251,999 339,598
Banco Bradesco SA..................................... 83,444,441 681,961
Banco Credito Nacional SA Brasil...................... 10,571,784 107,540
Banco do Brasil SA.................................... 98,670,000 1,243,047
Banco Itau SA......................................... 2,850,000 1,697,368
Brasiliero de Petroleo Ipiranga....................... 12,300,000 138,915
Brasmotor SA.......................................... 600,000 61,034
*COFAP (Cia Fabricadora De Pecas)..................... 5,100 44,474
Centrais Electricas de Santa Catarin Celesc Series
B................................................... 180,000 162,757
Cervejaria Brahma..................................... 2,490,767 1,450,915
Cia Siderurgica Belgo-Mineira......................... 970,000 60,341
Cimento Portland Itau................................. 630,000 115,026
Companhia Siderurgica de Tubarao Sid Tubarao.......... 11,520,000 179,684
Copene-Petroquimica do Nordeste SA Series A........... 624,000 151,852
Coteminas Cia Tecidos Norte de Minas.................. 610,000 103,419
Duratex SA............................................ 2,900,000 113,435
Ericsson Telecomunicacoes SA.......................... 15,480,000 314,262
IKPC Industrias Klabin de Papel e Celulose SA......... 176,875 92,268
Investimentos Itau SA................................. 730,000 539,481
*Lojas Americanas SA.................................. 1,610,000 10,498
Lojas Renner SA....................................... 800,000 26,778
Multibras Eletrodomesticos SA......................... 315,000 134,196
*Paranapanema SA...................................... 2,120,000 14,395
Sadia Concordia SA.................................... 100,000 63,468
*Siderurgica Paulista Casipa Series B................. 65,000 22,040
Suzano de Papel e Celulose............................ 54,000 69,954
Telecomunicacoes Brasileiras SA....................... 137,922 14,630
USIMINAS (Usinas Siderurgicas de Minas Gerais SA)..... 52,039 285,491
Unibanco-Uniao de Bancos Brasileiros SA............... 12,963,000 817,105
Vale do Rio Doce...................................... 81,160 1,686,453
*Vale do Rio Doce Series B............................ 81,160 0
Votorantim Celulose e Papel SA........................ 9,467,325 141,658
------------
TOTAL PREFERRED STOCKS
(Cost $10,194,974)................................... 10,884,043
------------
COMMON STOCKS -- (3.8%)
Acos Especiais Itabira-Acesita Aces................... 25,963,524 38,375
Antarctica Paulista I.B.B.C. Anta..................... 3,000 182,580
Banco Bamerindus do Brazil SA......................... 2,400 25,040
Banco Bradesco SA..................................... 152,752,333 1,208,547
Banco do Estado de Sao Paulo SA....................... 6,800,000 277,278
*Ceval Alimentos SA................................... 11,610,114 39,367
Compania de Electricidade da Bahia Coelba............. 2,780,000 122,023
Embraco SA............................................ 130,000 45,210
SHARES VALUE+
------------ ------------
*Embraer Empresa Brasileira de Aeronautica Series A... 1,700,000 $ 27,721
Empresa Nasional de Comercio Redito e Participacoes
SAncorpar........................................... 480,000 1,815
Gerdau SA............................................. 10,400,000 153,715
*Lojas Americanas SA.................................. 10,520,000 62,196
*Mannesmann SA........................................ 149,000 15,545
Petroquimica do Sul Copesul........................... 8,276,000 277,023
*Santista Alimentos SA................................ 33,115 25,912
Siderurgica Nacional Sid Nacional..................... 26,651,000 683,549
Souza Cruz Industria e Comercio....................... 71,000 487,663
Telecomunicacoes Brasileiras SA....................... 57,550,000 4,853,458
VSMA (Cia Vidraria Santa Marina)...................... 54,000 90,377
White Martins SA...................................... 208,662 206,815
------------
TOTAL COMMON STOCKS
(Cost $7,023,873).................................... 8,824,209
------------
RIGHTS/WARRANTS -- (0.0%)
Cia Siderurgica Belgo-Mineira Rights 06/08/98
(Cost $0)........................................... 20,394 0
------------
TOTAL -- BRAZIL
(Cost $17,218,847)................................... 19,708,252
------------
MALAYSIA -- (7.6%)
COMMON STOCKS -- (7.6%)
*AMMB Holdings Berhad................................. 147,200 131,083
AMMB Holdings Berhad 7.5% Unsecured Loan Stock 1999... 2,000 208
Affin Holdings Berhad................................. 113,000 39,427
*Amsteel Corp. Berhad................................. 264,000 29,902
*Aokam Perdana Berhad................................. 10,000 1,601
Arab Malaysia Corp. Berhad............................ 56,000 17,352
Asiatic Development Berhad............................ 118,000 36,563
Ban Hin Lee Bank Berhad............................... 20,000 23,851
Bandar Raya Developments Berhad....................... 23,000 4,492
Batu Kawan Berhad..................................... 51,000 64,007
Berjaya Group Berhad.................................. 94,000 16,277
Berjaya Leisure Berhad................................ 91,000 58,763
Berjaya Sports Toto Berhad............................ 79,000 165,590
Boustead Holdings Berhad.............................. 32,000 23,330
Cahya Mata Sarawak Berhad............................. 66,000 34,714
Carlsberg Brewery Malaysia Berhad..................... 53,000 172,504
Commerce Asset Holding Berhad......................... 288,200 152,336
Country Heights Holdings Berhad....................... 40,000 33,537
*Cycle & Carriage Bintang Berhad...................... 15,000 17,107
DCB Sakura Merchant New Shares........................ 4,100 1,388
Diversified Resources Berhad.......................... 28,000 8,603
*Ekran Berhad......................................... 108,000 15,607
Esso Malaysia Berhad.................................. 43,000 46,017
*Faber Group Berhad................................... 169,600 24,730
Fraser & Neave Holdings Berhad........................ 27,000 37,261
Gadek (Malaysia) Berhad............................... 11,000 6,846
Gamuda Berhad......................................... 60,000 62,492
Genting Berhad........................................ 259,000 674,391
Golden Hope Plantations Berhad........................ 371,000 405,728
Guiness Anchor Berhad................................. 105,000 139,435
Hap Seng Consolidated Berhad.......................... 93,000 108,970
Highlands and Lowlands Berhad......................... 211,000 206,577
Hong Leong Bank Berhad................................ 213,125 115,983
Hong Leong Credit Berhad.............................. 156,300 118,838
Hong Leong Industries Berhad.......................... 30,200 24,692
</TABLE>
10
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CONTINUED
<TABLE>
<CAPTION>
SHARES VALUE+
------------ ------------
<S> <C> <C>
Hong Leong Properties Berhad.......................... 112,000 $ 25,080
Hume Industries (Malaysia) Berhad..................... 52,000 41,161
IJM Corp. Berhad...................................... 56,000 24,788
IOI Corp. Berhad...................................... 295,000 198,945
*Idris Hydraulic (Malaysia) Berhad.................... 89,000 13,209
Innovest Berhad....................................... 53,000 9,108
Intria Berhad......................................... 80,000 11,249
Jaya Tiasa Holdings Berhad............................ 96,000 126,234
KFC Holdings (Malaysia) Berhad........................ 29,000 33,980
Kamunting Corp. Berhad................................ 40,000 5,208
Kedah Cement Holdings Berhad.......................... 74,000 13,488
Kuala Lumpur Kepong Berhad............................ 263,500 466,554
Land -- General Berhad................................ 35,000 5,468
Leader Universal Holdings Berhad...................... 69,000 14,014
*Leisure Management Berhad............................ 35,000 174,977
Lion Land Berhad...................................... 1,000 116
MBF Holdings Berhad................................... 141,000 15,053
*MBF Land Berhad...................................... 65,000 6,178
MNI Holdings Berhad................................... 10,000 15,623
Magnum Corp. Berhad................................... 554,500 291,652
Malakoff Berhad....................................... 78,000 182,789
Malayan Banking Berhad................................ 846,000 1,189,533
Malayan Cement Berhad................................. 65,750 29,104
Malayan United Industries Berhad...................... 70,000 9,113
Malaysia Industrial Development Finance Berhad........ 133,000 38,440
Malaysia Mining Corp. Berhad.......................... 292,000 128,494
Malaysian Airlines System............................. 269,000 161,099
Malaysian Helicopter Services Berhad.................. 110,000 15,467
Malaysian International Shipping Corp. (Foreign)...... 85,666 151,680
Malaysian Oxygen Berhad............................... 22,000 58,430
Malaysian Pacific Industries.......................... 73,000 185,327
Metroplex Berhad...................................... 173,000 39,190
Mulpha International Berhad........................... 133,750 16,020
Multi-Purpose Holdings Berhad......................... 86,000 22,617
Nestle (Malaysia) Berhad.............................. 86,000 382,919
Notth Borneo Timbers Berhad........................... 8,000 7,916
OSK Holdings.......................................... 34,000 11,420
Oriental Holdings Berhad.............................. 112,880 195,457
Oyl Industries Berhad................................. 47,000 121,768
Perlis Plantations Berhad............................. 76,500 93,621
Pernas International Holdings Berhad.................. 71,000 16,546
Perusahaan Otomobil Nasional Berhad................... 189,000 187,991
Petronas Dagangan Berhad.............................. 147,000 153,105
Petronas Gas Berhad................................... 669,000 1,515,506
Phileo Allied Berhad.................................. 54,000 28,121
Phileo Land Berhad.................................... 27,000 8,120
Public Bank Berhad (Foreign).......................... 12,799 4,999
RHB Capital Berhad.................................... 416,000 227,470
RJ Reynolds Berhad.................................... 91,000 142,169
Rashid Hussain Berhad................................. 97,000 60,617
*Renong Berhad........................................ 460,000 97,019
Resorts World Berhad.................................. 403,000 624,359
Road Builders (Malaysia) Holdings Berhad.............. 13,000 10,087
Rothmans of Pall Mall Malaysia Berhad................. 105,000 792,866
Sarawak Enterprise Corp. Berhad....................... 412,000 137,315
Shell Refining Co. Federation of Malaysia Berhad...... 110,000 186,174
<CAPTION>
SHARES VALUE+
------------ ------------
<S> <C> <C>
*Silverstone Berhad................................... 9,240 $ 0
Sime Darby Berhad (Malaysia).......................... 696,800 555,190
Sime UEP Properties Berhad............................ 84,000 66,491
Southern Bank Berhad (Foreign)........................ 51,000 24,434
*Southern Bank Berhad (Foreign) Issue 98.............. 63,750 28,219
Southern Steel Berhad................................. 45,000 17,576
Sungei Way Holdings Berhad............................ 63,000 14,764
Ta Enterprise Berhad.................................. 107,000 19,503
Tan Chong Motor Holdings Berhad....................... 141,000 91,785
Technology Resources (Industries) Berhad.............. 264,000 191,788
Telekom Malaysia Berhad............................... 975,000 2,234,084
Tenaga Nasional Berhad................................ 1,146,000 1,894,831
Time Engineering Berhad............................... 276,000 72,584
Tractors Malaysia Holdings Berhad..................... 22,000 7,447
UMW Holdings Berhad................................... 54,800 34,103
United Engineering (Malaysia) Berhad.................. 165,198 98,504
YTL Corp. Berhad...................................... 444,250 552,927
------------
TOTAL COMMON STOCKS
(Cost $40,075,109)................................... 17,649,385
------------
INVESTMENT IN
CURRENCY -- (0.0%)
*Malaysian Ringetts
(Cost $2)........................................... 1
------------
TOTAL -- MALAYSIA
(Cost $40,075,111)................................... 17,649,386
------------
SOUTH KOREA -- (7.2%)
COMMON STOCKS -- (7.2%)
*A-Nam Industrial Co., Ltd............................ 9,640 24,656
*Asia Motors Co., Inc................................. 16,640 11,113
*Bank of Pusan........................................ 12,200 17,726
Cheil Jedang Corp..................................... 6,144 78,137
*Cho Hung Bank Co., Ltd............................... 187,940 146,213
Chong Kun Dang........................................ 1,558 33,097
Chosun Brewery Co., Ltd............................... 2,870 16,313
*Commercial Bank of Korea Co., Ltd.................... 201,999 157,151
*Daegu Bank Co., Ltd.................................. 30,323 44,596
*Daelim Industrial Co., Ltd........................... 16,100 23,564
*Daesung Industrial Co., Ltd.......................... 1,570 17,290
Daewoo Corp........................................... 147,380 383,240
*Daewoo Electronics Co., Ltd.......................... 85,420 223,943
Daewoo Heavy Industries, Ltd.......................... 475,260 1,630,909
*Daewoo Motor Sales Corp.............................. 9,480 23,203
*Daewoo Securities Co., Ltd........................... 51,800 221,185
*Dong-Ah Construction Industrial Co., Ltd............. 22,290 31,832
*Dongkuk Steel Mill Co., Ltd.......................... 13,800 55,886
*Dongsuh Securities Co., Ltd.......................... 17,800 12,836
*Dongwon Securities Co., Ltd.......................... 14,060 50,047
*Han Il Cement Manufacturing Co., Ltd................. 2,867 26,582
Han Kook Tire Manufacturing Co., Ltd.................. 2,206 48,587
*Hanil Bank........................................... 176,150 130,157
*Hanjin Heavy Industry Co., Ltd....................... 21,910 80,946
*Hanjin Shipping Co., Ltd............................. 6,160 18,425
Hankook Caprolactam Corp.............................. 590 25,151
Hansol Paper Co., Ltd................................. 9,204 55,257
*Hanwha Chemical Corp................................. 31,691 58,316
</TABLE>
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CONTINUED
<TABLE>
<CAPTION>
SHARES VALUE+
------------ ------------
<S> <C> <C>
*Hyosung T & C Co., Ltd............................... 4,000 $ 25,009
*Hyundai Engineering & Construction Co., Ltd.......... 70,112 256,039
*Hyundai Fire & Marine Insurance Co., Ltd............. 5,360 36,939
*Hyundai Motor Co., Ltd............................... 53,370 564,982
*Hyundai Motor Service Co., Ltd....................... 7,470 19,743
*Hyundai Precision Industry Co., Ltd.................. 19,210 40,263
*Hyundai Securities Co., Ltd.......................... 34,944 81,433
*Inchon Iron & Steel Co., Ltd......................... 11,641 36,391
*Keumkang Co., Ltd.................................... 3,060 32,611
*Kia Motors Corp...................................... 43,960 107,128
*Kookmin Bank......................................... 217,668 1,074,812
*Korea Chemical Co., Ltd.............................. 1,020 13,407
Korea Electric Power Corp............................. 80,470 806,129
Korea Express Co., Ltd................................ 7,340 14,211
*Korea First Bank Inc., Ltd........................... 11,800 28,882
*Korea Long Term Credit Bank.......................... 111,110 309,450
Korea Zinc Co., Ltd................................... 8,770 68,540
*Korean Air........................................... 3,750 11,456
*Kyong Nam Bank....................................... 15,280 23,883
LG Chemical, Ltd...................................... 100,560 664,446
*LG Construction, Ltd................................. 14,120 25,682
LG Electronics, Inc................................... 114,140 1,070,442
*LG Industrial Systems, Ltd........................... 12,210 36,999
LG Information & Communications, Ltd.................. 20,610 483,218
*LG Insurance Co., Ltd................................ 2,210 64,377
*LG Securities Co., Ltd............................... 23,700 60,450
Oriental Chemical Industries Co., Ltd................. 5,720 40,518
Pacific Chemical Co., Ltd............................. 4,330 47,991
Pohang Iron & Steel Co., Ltd.......................... 2,580 88,719
*SK Corp., Ltd........................................ 101,640 598,647
SK Telecom Co., Ltd................................... 133 40,160
Sam Yang Corp......................................... 3,580 14,040
Samchully Co., Ltd.................................... 1,233 15,593
*Samsung Aerospace Industrial Co., Ltd................ 19,490 54,004
*Samsung Corp......................................... 36,890 120,302
Samsung Display Devices, Ltd.......................... 33,805 1,198,486
Samsung Electro-Mechanics Co., Ltd.................... 46,639 593,135
Samsung Electronics Co., Ltd.......................... 46,249 1,757,954
*Samsung Fire & Marine Insurance...................... 2,955 680,227
*Samsung Heavy Industries Co., Ltd.................... 98,240 590,487
*Seondo Electric Co., Ltd............................. 8,800 95,034
*Seoul Bank........................................... 11,800 22,971
*Shinhan Bank Co., Ltd................................ 172,044 672,285
*Shinsegae Department Store........................... 6,720 64,455
*Ssangyong Cement Industry Co., Ltd................... 17,965 27,314
*Ssangyong Investment Securities Co., Ltd............. 29,285 43,485
*Ssangyong Motor Co................................... 29,100 33,907
Ssangyong Oil Refining Co., Ltd....................... 32,080 233,620
Sungmi Telecom Electronics Co., Ltd................... 1,052 23,843
*Sunkyong, Ltd........................................ 12,617 27,520
Tae Kwang Industrial Co., Ltd......................... 660 127,545
Tae Young Corp........................................ 3,280 38,451
*Tai Han Electric Wire Co............................. 5,990 17,364
<CAPTION>
SHARES VALUE+
------------ ------------
<S> <C> <C>
*Trigem Computer, Inc................................. 3,210 $ 8,461
Young Poong Mining & Construction Corp................ 3,296 18,968
------------
TOTAL COMMON STOCKS
(Cost $36,588,746)................................... 16,898,766
------------
RIGHTS/WARRANTS -- (0.0%)
*Koram Bank, Ltd. Rights 05/13/98..................... 26,903 2,867
*Samsung Fine Chemicals Rights 06/17/98............... 1,832 4,425
------------
TOTAL RIGHTS/WARRANTS
(Cost $0)............................................ 7,292
------------
INVESTMENT IN
CURRENCY -- (0.0%)
*Korean Won
(Cost $36).......................................... 26
------------
TOTAL -- SOUTH KOREA
(Cost $36,588,782)................................... 16,906,084
------------
THAILAND -- (6.3%)
COMMON STOCKS -- (6.3%)
*Adkinson Securities Public Co., Ltd. (Foreign)....... 2,100 767
*Advance Agro Public Co., Ltd. (Foreign).............. 1,030,130 879,908
Advanced Info Service Public Co., Ltd. (Foreign)...... 561,100 3,056,250
*Amarin Plaza Public Co., Ltd. (Foreign).............. 7,400 769
Ayudhya Insurance Public Co., Ltd. (Foreign).......... 1,000 3,342
*Bangkok Bank of Commerce Public Co., Ltd.
(Foreign)........................................... 152,949 20,070
*Bangkok Expressway Public Co., Ltd. (Foreign)........ 1,971,100 1,134,639
*Bangkok Land Public Co., Ltd. (Foreign).............. 65,200 3,067
*Bangkok Metropolitan Bank Public Co., Ltd.
(Foreign)........................................... 732,794 47,172
*Bangkok Rubber Public Co., Ltd. (Foreign)............ 14,600 3,615
*Bangkok Steel Industry Public Co., Ltd. (Foreign).... 20,000 941
*Bank of Asia Public Co., Ltd. (Foreign).............. 12,870 3,266
Bank of Ayudhya Public Co., Ltd. (Foreign)............ 1,279,250 356,315
Banpu Public Co., Ltd. (Foreign)...................... 33,400 106,675
Berli Jucker Public Co., Ltd. (Foreign)............... 10,100 9,752
*Capital Nomura Securities Public Co., Ltd.
(Foreign)........................................... 14,000 5,979
*Ch Karnchang Public Co., Ltd. (Foreign).............. 149,100 149,506
*Charoen Pokphand Feedmill Public Co., Ltd.
(Foreign)........................................... 14,000 14,211
*Christiani and Nielson (Thai) Public Co., Ltd.
(Foreign)........................................... 7,097 141
Compass East Industry (Thailand) Public Co., Ltd.
(Foreign)........................................... 2,400 15,925
Delta Electronics (Thailand) Public Co., Ltd.......... 8,300 62,471
</TABLE>
12
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CONTINUED
<TABLE>
<CAPTION>
SHARES VALUE+
------------ ------------
<S> <C> <C>
Delta Electronics (Thailand) Public Co., Ltd.
(Foreign)........................................... 205,000 $ 1,471,898
*Dusit Thani Public Co., Ltd. (Foreign)............... 8,933 9,317
*Ekachart Finance and Securities Co., Ltd.
(Foreign)........................................... 10,200 2,437
*First Bangkok City Bank Public Co., Ltd. (Foreign)... 1,613,550 115,853
*First City Investment Public Co., Ltd. (Foreign)..... 44,200 1,423
*Five Stars Property Public Co., Ltd. (Foreign)....... 3,800 113
*GSS Array Technology Public Co., Ltd. (Foreign)...... 3,200 10,696
*General Finance and Securities Public Co., Ltd.
(Foreign)........................................... 46,300 9,056
Grammy Entertainment Public Co., Ltd. (Foreign)....... 116,500 311,513
*Hana Microelectronics Co., Ltd. (Foreign)............ 57,000 197,574
*Hemaraj Land and Development Public Co., Ltd.
(Foreign)........................................... 27,500 6,196
*ITF Finance and Securities Public Co., Ltd........... 8,025 477
*International Broadcasting Corp. Public Co., Ltd.
(Foreign)........................................... 10,690 6,352
International Cosmetics Public Co., Ltd. (Foreign).... 3,500 4,593
*International Engineering Public Co., Ltd.
(Foreign)........................................... 2,000 327
*Italian-Thai Development Public Co., Ltd.
(Foreign)........................................... 355,000 248,298
*Jasmine International Public Co., Ltd. (Foreign)..... 417,000 94,984
*Juldis Develop Public Co., Ltd. (Foreign)............ 1,000 22
*Kiatnakin Finance and Securities Public Co., Ltd.
(Foreign)........................................... 12,800 1,489
*Krisda Mahanakorn Public Co., Ltd. (Foreign)......... 23,300 808
Krung Thai Bank Public Co., Ltd....................... 1,049,000 166,219
Krung Thai Bank Public Co., Ltd. (Foreign)............ 4,703,670 756,966
*Land and House Public Co., Ltd. (Foreign)............ 2,065 729
*MK Real Estate Development Public Co., Ltd.
(Foreign)........................................... 2,925 152
Mutual Fund Public Co., Ltd. (Foreign)................ 500 1,238
*NTS Steel Group Public Co., Ltd. (Foreign)........... 35,500 2,197
Nakornthon Bank Public Co., Ltd. (Foreign)............ 96,201 11,194
*National Finance and Securities Public Co., Ltd.
(Foreign)........................................... 122,400 31,820
*National Petrochemical Public Co., Ltd............... 234,800 133,706
*Natural Park Public Co., Ltd. (Foreign).............. 192,700 4,771
*New Imperial Hotel Public Co., Ltd. (Foreign)........ 30,000 16,805
*Padaeng Industry Public Co., Ltd (Foreign)........... 7,800 1,178
<CAPTION>
SHARES VALUE+
------------ ------------
<S> <C> <C>
*Phatra Thanakit Public Co., Ltd. (Foreign)........... 140,400 $ 59,963
Phoenix Pulp and Paper Public Co., Ltd. (Foreign)..... 52,700 30,336
*Poonipat Finance and Securities Public Co., Ltd.
(Foreign)........................................... 4,987 1,148
*Power-P Public Co., Ltd. (Foreign)................... 1,600 73
*Premier Enterprises Public Co., Ltd. (Foreign)....... 6,000 59
*Property Perfect Public Co., Ltd. (Foreign).......... 26,050 903
*Quality Houses Public Co., Ltd. (Foreign)............ 18,000 1,203
Regional Container Lines Public Co., Ltd. (Foreign)... 1,500 1,485
*Robinson Department Store Public Co., Ltd.
(Foreign)........................................... 24,700 1,162
Saha-Union Public Co. Ltd. (Foreign).................. 48,700 33,761
*Sammakorn Public Co., Ltd. (Foreign)................. 7,500 1,820
*Sanyo Universal Electric Public Co., Ltd.
(Foreign)........................................... 6,500 1,609
*Securities One Public Co., Ltd. (Foreign)............ 255,431 26,561
*Serm Suk Public Co., Ltd. (Foreign).................. 1,000 6,685
Shangri-la Hotel Public Co., Ltd. (Foreign)........... 12,000 5,051
Shinawatra Computer and Communications Public Co.,
Ltd. (Foreign)...................................... 172,300 584,429
*Siam Cement Public Co., Ltd. (Foreign)............... 27,000 172,468
*Siam City Bank Public Co., Ltd. (Foreign)............ 370,000 1,832
*Siam City Cement Public Co., Ltd. (Foreign).......... 212,888 300,436
Siam Commercial Bank Public Co., Ltd. (Foreign)....... 334,666 190,575
Siam Makro Public Co., Ltd. (Foreign)................. 614,300 912,552
*Siam Pulp & Paper Co., Ltd. (Foreign)................ 46,200 37,747
*Sino-Thai Engineering and Construction Public Co.,
Ltd. (Foreign)...................................... 2,900 431
*Somprasong Land Public Co., Ltd. (Foreign)........... 5,400 13
*Srithai Superware Public Co., Ltd. (Foreign)......... 16,400 3,126
*Swedish Motors Corp. Public Co., Ltd. (Foreign)...... 7,000 572
*TPI Polene Public Co., Ltd. (Foreign)................ 258,476 22,398
*Tanayong Public Co., Ltd. (Foreign).................. 46,000 2,164
*Telecomasia Corp. Public Co., Ltd. (Foreign)......... 4,574,500 1,302,469
*Thai Carbon Black Public Co., Ltd. (Foreign)......... 5,000 4,952
Thai Danu Bank Public Co., Ltd. (Foreign)............. 100,900 54,959
*Thai German Ceramic Industry Public Co., Ltd.
(Foreign)........................................... 11,100 1,924
Thai Glass Industries Public Co., Ltd. (Foreign)...... 15,400 25,737
Thai Military Bank Public Co., Ltd.................... 530,200 98,452
</TABLE>
13
<PAGE>
THE EMERGING MARKETS SERIES
CONTINUED
<TABLE>
<CAPTION>
SHARES VALUE+
------------ ------------
<S> <C> <C>
Thai Military Bank Public Co., Ltd. (Foreign)......... 1,905,300 $ 353,794
*Thai Petrochemical Industry Public Co., Ltd.
(Foreign)........................................... 2,768,960 301,644
Thai Plastic and Chemicals Public Co., Ltd.
(Foreign)........................................... 29,300 58,760
*Thai Telephone & Telecommunication Public Co., Ltd.
(Foreign)........................................... 450,000 75,761
*Thaimex Finance and Securities Public Co., Ltd.
(Foreign)........................................... 4,100 304
*Tipco Asphalt Public Co., Ltd. (Foreign)............. 160,000 180,243
*Tuntex (Thailand) Public Co., Ltd. (Foreign)......... 91,828 38,650
*United Communication Industry Public Co., Ltd.
(Foreign)........................................... 335,200 217,851
*Wattachak Public Co., Ltd. (Foreign)................. 24,300 2,707
------------
TOTAL COMMON STOCKS
(Cost $47,705,693)................................... 14,613,951
------------
RIGHTS/WARRANTS -- (0.0%)
*Bank of Ayudhya Public Co., Ltd. (Foreign) Rights
06/10/98............................................ 1,279,250 27,713
*Securities One Public Co., Ltd. (Foreign) Warrants
1998-2001........................................... 178,801 0
*Siam Commercial Bank Public Co., Ltd. (Foreign)
Warrants open expiration............................ 83,666 0
------------
TOTAL RIGHTS/WARRANTS
(Cost $0)............................................ 27,713
------------
INVESTMENT IN
CURRENCY -- (0.0%)
*Thailand Baht
(Cost $5,734)....................................... 5,777
------------
TOTAL -- THAILAND
(Cost $47,711,427)................................... 14,647,441
------------
INDONESIA -- (2.2%)
COMMON STOCKS -- (2.2%)
PT Asahimas Flat Glass Co., Ltd....................... 75,000 2,987
PT Astra International Tbk............................ 1,003,000 93,199
PT Bakrie & Brothers Tbk.............................. 1,259,000 25,068
PT Bank Danamon (Foreign)............................. 1,121,000 12,400
PT Bank International Indonesia (Foreign)............. 1,855,993 65,699
PT Bank Niaga Tbk..................................... 151,380 4,689
PT Barito Pacific Timber.............................. 910,000 36,239
*PT Bimantara Citra................................... 589,000 23,456
PT Charoen Pokphand Tbk............................... 95,000 2,312
PT Ciputra Development Tbk............................ 262,000 4,637
PT Citra Marga Nusaphala Persada...................... 960,000 31,858
PT Dankos Laboratories................................ 21,000 883
PT Duta Pertiwi....................................... 200,000 4,425
PT Gajah Tunggal Tbk.................................. 2,058,000 27,318
PT Gt Kabel Indonesia Tbk............................. 212,000 2,345
PT GT Petrochem Industries Tbk........................ 70,000 774
SHARES VALUE+
------------ ------------
PT Hanjaya Mandala Sampoerna Tbk...................... 496,500 $ 166,964
PT Hero Supermarket Tbk............................... 78,000 6,903
PT Indah Kiat Pulp & Paper Corp....................... 2,221,601 363,711
PT Indocement Tunggal Prakarsa........................ 1,318,000 314,919
*PT Indofood Sukses Makmur............................ 930,280 129,662
PT Indorama Synthetics Tbk............................ 365,580 61,469
PT Indosat Tbk........................................ 600,500 794,463
*PT Inti Indorayo Utama............................... 257,000 17,057
PT Jakarta International Hotel and Development Tbk.... 362,500 20,050
PT Japfa Comfeed Indonesia Tbk........................ 29,000 674
PT Jaya Real Property................................. 305,000 9,447
PT Kalbe Farma Tbk.................................... 150,000 7,301
PT Kawasan Industry Jababeka Tbk...................... 407,333 14,419
PT Lippo Bank (Foreign)............................... 557,000 45,595
*PT Lippo Land Development Tbk........................ 174,000 5,004
PT Matahari Putra Prima Tbk........................... 314,000 5,557
PT Mayorah Indah...................................... 288,720 13,414
PT Modern Photo Tbk................................... 154,000 13,628
PT Mulia Industrindo.................................. 850,680 33,876
PT Pabrik Kertas Tjiwi Kimia Tbk...................... 765,821 91,491
PT Pakuwon Jati Tbk................................... 312,000 6,557
PT Panasia Indosyntec Tbk............................. 103,600 1,604
PT Pdni Tbk........................................... 1,379,000 12,203
PT Perusahaan Rokok Tjap Gudang Garam................. 961,500 706,231
*PT Polysindo Eka Perkasa Tbk......................... 481,000 41,502
PT Putra Surya Perkasa Tbk............................ 1,296,000 20,071
PT Semen Cibinong Tbk................................. 231,000 9,199
PT Semen Gresik....................................... 385,500 206,395
PT Summarecon Agung................................... 87,838 1,749
PT Tambang Timah (Persero) Tbk........................ 327,000 202,565
PT Telekomunikasi Indonesia (Persero) Tbk............. 4,316,500 1,432,459
PT Tempo Scan Pacific................................. 19,500 561
PT Tigaraksa Satria Tbk............................... 25,200 7,582
PT Unggul Indah Corp. Tbk............................. 110,000 14,602
PT United Tractors.................................... 15,000 796
------------
TOTAL -- INDONESIA
(Cost $30,011,241)................................... 5,117,969
------------
CHILE -- (0.8%)
COMMON STOCKS -- (0.8%)
*Banco de Santiago SA Santiago ADR.................... 19,400 358,900
Banco Santander Chile Sponsored ADR................... 35,000 459,375
Embotelladora Andina SA Andina ADR.................... 12,000 225,375
Embotelladora Andina SA Andina Series B ADR........... 30,000 506,250
Laboratorio Chile SA Labchile ADR..................... 9,000 159,750
Vina Concha y Toro SA Conchatoro ADR.................. 8,600 248,594
------------
TOTAL -- CHILE
(Cost $2,023,538).................................... 1,958,244
------------
</TABLE>
14
<PAGE>
THE EMERGING MARKETS SERIES
CONTINUED
<TABLE>
<CAPTION>
<S> <C> <C>
FACE
AMOUNT VALUE+
------------ ------------
<CAPTION>
(000)
<S> <C> <C>
TEMPORARY CASH INVESTMENTS -- (3.5%)
Repurchase Agreement, Chase Manhattan Bank N.A. 5.20%,
06/01/98 (Collateralized by U.S. Treasury Notes
5.50%, 01/31/03, valued at $8,383,713) to be
repurchased at $8,219,560.
(Cost $8,216,000)................................... $8,216 $ 8,216,000
------------
TOTAL INVESTMENTS -- (100.0%)
(Cost $302,899,408)++................................ 234,117,116
------------
OTHER ASSETS AND LIABILITIES -- (0.0%)
Dividends Receivable.................................. 814,937
Receivable for Investment Securities Sold............. 509,310
Other Assets.......................................... 177,416
Payable for Investment Securities Purchased........... (1,377,276)
Other Liabilities..................................... (204,903)
------------
(80,516)
------------
NET ASSETS -- (100.0%)................................. $234,036,600
------------
------------
- --------------------
+See Note B to Financial Statements.
*Non-Income Producing Securities
++Approximates cost for federal income tax purposes.
</TABLE>
See accompanying Notes to Financial Statements.
15
<PAGE>
THE DFA INVESTMENT TRUST COMPANY
THE EMERGING MARKETS SERIES
STATEMENT OF OPERATIONS
FOR THE SIX MONTHS ENDED MAY 31, 1998
(UNAUDITED)
(AMOUNTS IN THOUSANDS)
<TABLE>
<S> <C>
INVESTMENT INCOME
Dividends (Net of Foreign Taxes Withheld of $234).................................. $ 3,063
Interest........................................................................... 173
---------
Total Investment Income........................................................ 3,236
---------
EXPENSES
Investment Advisory Services....................................................... 116
Accounting & Transfer Agent Fees................................................... 142
Custodian's Fee.................................................................... 349
Legal Fees......................................................................... 3
Audit Fees......................................................................... 3
Shareholders' Reports.............................................................. 2
Trustees' Fees and Expenses........................................................ 1
Other.............................................................................. 11
---------
Total Expenses................................................................. 627
---------
NET INVESTMENT INCOME.............................................................. 2,609
---------
NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS AND FOREIGN CURRENCY
Net Realized Loss on Investment Securities............................................. (1,127)
Net Realized Loss on Foreign Currency Transactions..................................... (393)
Change in Unrealized Appreciation (Depreciation) of:
Investment Securities and Foreign Currency......................................... (11,022)
Translation of Foreign Currency Denominated Amounts................................ 10
---------
NET LOSS ON INVESTMENT SECURITIES AND FOREIGN CURRENCY (12,532)
---------
NET DECREASE IN NET ASSETS RESULTING FROM OPERATIONS................................... $ (9,923)
---------
---------
</TABLE>
See accompanying Notes to Financial Statements.
16
<PAGE>
THE DFA INVESTMENT TRUST COMPANY
THE EMERGING MARKETS SERIES
STATEMENTS OF CHANGES IN NET ASSETS
(AMOUNTS IN THOUSANDS)
<TABLE>
<CAPTION>
SIX MONTHS YEAR
ENDED ENDED
MAY 31, NOV. 30,
1998 1997
------------ -----------
(UNAUDITED)
<S> <C> <C>
INCREASE (DECREASE) IN NET ASSETS
Operations:
Net Investment Income.................................................................. $ 2,609 $ 3,681
Net Realized Gain (Loss) on Investment Securities...................................... (1,127) 153
Net Realized Gain (Loss) on Foreign Currency Transactions.............................. (393) 693
Change in Unrealized Appreciation (Depreciation) of:
Investment Securities and Foreign Currency......................................... (11,022) (61,201)
Translation of Foreign Currency Denominated Amounts................................ 10 (19)
------------ -----------
Net Decrease in Net Assets Resulting from Operations........................... (9,923) (56,693)
------------ -----------
Transactions in Interest
Contributions.......................................................................... 51,984 130,588
Withdrawals............................................................................ (28,965) (15,029)
------------ -----------
Net Increase From Transactions in Interest..................................... 23,019 115,559
------------ -----------
Total Increase................................................................. 13,096 58,866
NET ASSETS
Beginning of Period.................................................................... 220,941 162,075
------------ -----------
End of Period.......................................................................... $ 234,037 $ 220,941
------------ -----------
------------ -----------
</TABLE>
See accompanying Notes to Financial Statements.
17
<PAGE>
THE DFA INVESTMENT TRUST COMPANY
THE EMERGING MARKETS SERIES
FINANCIAL HIGHLIGHTS
(FOR A SHARE OUTSTANDING THROUGH EACH PERIOD)
<TABLE>
<CAPTION>
SIX MONTHS YEAR YEAR YEAR APRIL 25
ENDED ENDED ENDED ENDED TO
MAY 31, NOV. 30, NOV. 30, NOV. 30, NOV. 30,
1998 1997 1996 1995 1994
------------ ----------- ----------- ---------- ----------
(UNAUDITED)
<S> <C> <C> <C> <C> <C>
Net Asset Value, Beginning of Period......................... N/A+ N/A+ N/A+ N/A+ N/A+
------------ ----------- ----------- ---------- ----------
INCOME FROM INVESTMENT OPERATIONS
Net Investment Income...................................... -- -- -- -- --
Net Gains (Losses) on Securities (Realized and
Unrealized).............................................. -- -- -- -- --
------------ ----------- ----------- ---------- ----------
Total from Investment Operations........................... -- -- -- -- --
------------ ----------- ----------- ---------- ----------
LESS DISTRIBUTIONS
Net Investment Income...................................... -- -- -- -- --
Net Realized Gains......................................... -- -- -- -- --
------------ ----------- ----------- ---------- ----------
Total Distributions........................................ -- -- -- -- --
------------ ----------- ----------- ---------- ----------
Net Asset Value, End of Period............................... N/A+ N/A+ N/A+ N/A+ N/A+
------------ ----------- ----------- ---------- ----------
------------ ----------- ----------- ---------- ----------
Total Return................................................. N/A+ N/A+ N/A+ N/A+ N/A+
Net Assets, End of Period (thousands)........................ $ 234,037 $ 220,941 $ 162,075 $ 49,351 $ 15,724
Ratio of Expenses to Average Net Assets...................... 0.54%* 0.54% 0.66% 0.87% 1.49%*
Ratio of Net Investment Income to Average Net Assets......... 2.26%* 1.63% 1.63% 1.70% 0.56%*
Portfolio Turnover Rate...................................... 14.13%* 0 54% 0.37% 8.17% 1.28%*
Average Commission Rate...................................... $ 0.0013 $ 0.0010 $ 0.0010 N/A N/A
</TABLE>
- --------------
* Annualized
+ Not applicable as The Emerging Markets Series is organized as a partnership.
See accompanying Notes to Financial Statements.
18
<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. The
Trust currently offers sixteen series, of which The Emerging Markets Series (the
"Series") is presented in this report.
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. The preparation of financial statements in accordance with generally
accepted accounting principles may require management to make estimates and
assumptions that affect the reported amounts and disclosures in the financial
statements. Actual results could differ from those estimates.
1. SECURITY VALUATION: Securities held by the Series which are listed on a
securities exchange are valued at the last quoted sale price. Price information
on listed securities is taken from the exchange where the security is primarily
traded. Unlisted securities for which market quotations are readily available
are valued at the mean between the most recent bid and asked prices. Securities
for which quotations are not readily available are valued in good faith at fair
value using methods determined by the Board of Directors.
2. FOREIGN CURRENCY TRANSLATION: Securities, other assets and liabilities
of The DFA International Value Series whose values are initially expressed in
foreign currencies are translated to U.S. dollars at the bid price of such
currency against U.S. dollars last quoted by a major bank. Dividend and interest
income and certain expenses are translated to U.S. dollars at the rate of
exchange on their respective accrual dates. Receivables and payables denominated
in foreign currencies are marked to market daily based on daily exchange rates
and exchange gains or losses are realized upon ultimate receipt or disbursement.
3. 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.
4. 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 Trust's
custodian or a third party sub-custodian. All open repurchase agreements were
entered into on May 29, 1998.
5. FOREIGN MARKET RISKS: Investments in foreign markets may involve
certain considerations and risks not typically associated with investments in
the United States, including the possibility of future political and economic
developments and the level of foreign government supervision and regulation of
foreign securities markets. These markets are generally smaller, less liquid and
more volatile than the major securities markets in the United States.
Consequently, acquisition and disposition of securities by the Fund may be
inhibited.
6. 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 attributable to a Series are directly charged.
Common expenses are allocated using methods determined by the Board of
Directors.
19
<PAGE>
C. INVESTMENT ADVISOR:
Dimensional Fund Advisors Inc. ("DFA" or the "Advisor") provides investment
advisory services to the Series. For the six months ended May 31, 1998, the
Series' advisory fees were computed daily and paid monthly to the Advisor based
on an effective annual rate of 0.10 of 1% of average daily net assets.
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, 1998, the Series made the following
purchases and sales of investment securities other than U.S. Government
Securities (amounts in thousands):
<TABLE>
<S> <C>
Purchases............................................... $ 37,779
Sales................................................... 16,037
</TABLE>
E. INVESTMENT TRANSACTIONS:
At May 31, 1998, gross unrealized appreciation and depreciation for
financial reporting and federal income tax purposes of investment securities and
foreign currencies was as follows (amounts in thousands):
<TABLE>
<S> <C>
Gross Unrealized Appreciation......................... $ 56,541
Gross Unrealized Depreciation......................... (125,323)
----------
Net................................................... $ (68,782)
----------
----------
</TABLE>
F. LINE OF CREDIT:
The Trust, together with other DFA-advised portfolios, has entered into a
$50 million unsecured line of credit with its domestic custodian bank. Each
series is permitted to borrow, subject to its investment limitations, up to a
maximum of $50 million. Borrowings under the line are charged interest at the
current overnight federal funds rate plus a variable rate determined at the date
of borrowing. Each series is individually, and not jointly liable for its
particular advances under the line. There is no commitment fee on the unused
portion of the line of credit. There were no borrowings under the line of credit
by the Series during the six months ended May 31, 1998.
20
