<PAGE>
THE SINGAPORE FUND, INC.
- ----------------------------------------------------------------------
GENERAL INFORMATION
- --------------------------------------------------------------------------------
THE FUND
The Singapore Fund, Inc. (the "Fund") is a non-diversified, closed-end
management investment company. Its primary investment objective is capital
appreciation, which it seeks through investment primarily in Singapore equity
securities, and to a lesser degree, investment in equity securities issued by
companies in ASEAN Group countries (which is composed of Brunei, Indonesia,
Malaysia, the Philippines, Thailand and Vietnam) and Indochina (which is
composed of Laos and Cambodia). The Fund's Investment Manager is DBS Asset
Management (United States) Pte. Ltd. (the "Manager"), an indirectly wholly-owned
subsidiary of The Development Bank of Singapore, Ltd. Daiwa International
Capital Management (Singapore) Limited provides the Manager with advice
regarding investments.
SHAREHOLDER INFORMATION
The Fund's shares are listed on the New York Stock Exchange ("NYSE") and the
Osaka Securities Exchange ("OSE"). The Fund understands that its shares may
trade periodically on certain exchanges other than the NYSE or the OSE, but the
Fund has not listed its shares on those other exchanges and does not encourage
trading on those exchanges.
The Fund's NYSE trading symbol is "SGF". Weekly comparitive net asset value
(NAV) and market price information about the Fund is published each Monday in
THE WALL STREET JOURNAL, each Sunday in THE NEW YORK TIMES, and each Saturday in
BARRON'S, and also in many other newspapers.
The Fund held its Annual Meeting of Shareholders on June 6, 1996, which was
subsequently adjourned to and completed on July 1, 1996. Press releases
summarizing the results of these meetings were sent to the Fund's registered
holders shortly thereafter. If you would like a copy of the press releases,
please contact Daiwa Securities Trust Company, the Fund's Administrator (the
"Administrator") at the number directly below.
INQUIRIES
It is the policy of the Fund to respond to inquiries about its portfolio
holdings and performance. Such inquiries should be directed to the Fund's
Manager in Singapore at (011-65) 220-1111, or the Administrator at (800)
933-3440 or (201) 915-3020. Inquiries concerning your share account should be
directed to State Street Bank and Trust Company (the "Plan Agent") at the number
noted below. All written inquiries should be directed to the Fund, c/o Daiwa
Securities Trust Company, One Evertrust Plaza, 9th Floor, Jersey City, New
Jersey 07302.
RESTRICTION ON BENEFICIAL OWNERSHIP BY SINGAPORE RESIDENTS
The Fund expects to continue to qualify for a Singapore income tax exemption
granted to non-Singapore resident investors with respect to certain types of
income derived from Singapore sources. In order for the Fund to be treated as a
non-Singapore resident, and therefore qualify for this exemption, not more than
5% of the Fund's issued share capital may be beneficially owned, directly or
indirectly, by Singapore residents. For this reason, the Fund's Board of
Directors has restricted, and in the future may prohibit, the transfer of the
Fund's shares to residents of Singapore.
<PAGE>
THE SINGAPORE FUND, INC.
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GENERAL INFORMATION (CONTINUED)
- --------------------------------------------------------------------------------
DIVIDEND REINVESTMENT AND CASH PURCHASE PLAN
A Dividend Reinvestment and Cash Purchase Plan (the "Plan") is available to
provide Shareholders with automatic reinvestment of dividends and capital gain
distributions in additional Fund shares. The Plan also allows you to make
optional semi-annual cash investments in the Fund's shares through the Plan
Agent. A brochure fully describing the Plan's terms and conditions is available
from the Plan Agent by calling (800) 426-5523 or by writing State Street Bank
and Trust Company, c/o The Singapore Fund, Inc., P.O. Box 8200, Boston, MA
02266-8200.
WHO CAN PARTICIPATE IN THE PLAN? If you wish to participate and your shares
are held in your name, no action is required on your part, as you are
AUTOMATICALLY ENROLLED by the Plan Agent. However, if your shares are held in
the name of a brokerage firm, bank or nominee, you should instruct your nominee
to participate in the Plan on your behalf. If your nominee is unable to
participate in the Plan for you, you should request that your shares be
registered in your name, so that you may participate directly in the Plan.
MAY I WITHDRAW FROM THE PLAN? If your shares are held in your name and you
wish to receive all dividends and capital gain distributions in cash rather than
in shares, you may withdraw from the Plan without penalty at any time by
contacting the Plan Agent. If your shares are held in nominee name, you should
be able to withdraw from the Plan without penalty at any time by sending written
notice to your nominee. If you withdraw, you will receive a share certificate
for all full shares or, if you wish, the Plan Agent will sell your shares and
send you the proceeds, after the deduction of brokerage commissions. The Plan
Agent will convert any fractional shares to cash at the then-current market
price and send to you a check for the proceeds.
HOW ARE THE DIVIDENDS AND DISTRIBUTIONS REINVESTED? If the market price of
the Fund's shares on the payment date should equal or exceed their net asset
value per share, the Fund will issue new shares to you at the higher of net
asset value or 95% of the then-current market price. If the market price is
lower than net asset value per share, the Fund will issue new shares to you at
the market price. If the dividends or distributions are declared and payable as
cash only, you will receive shares purchased for you by the Plan Agent on the
NYSE or otherwise on the open market to the extent available.
WHAT IS THE CASH PURCHASE FEATURE? The Plan also allows shareholders to make
optional cash investments in Fund shares semi-annually through the Plan Agent in
any amount from $100 to $3,000. The Plan Agent will purchase shares for you on
the NYSE or otherwise on the open market twice a year, on or about February 15th
and August 15th. Plan participants should send in voluntary cash payments to be
received by the Plan Agent approximately ten days before the applicable purchase
date. The Plan Agent will return any cash payments received more than thirty
days prior to the applicable date. You may withdraw a voluntary cash payment by
written notice, if the notice is received by the Plan Agent not less than two
business days before the purchase date.
IS THERE A COST TO PARTICIPATE? There are no Plan charges or brokerage
charges for shares issued directly by the Fund. However, each participant will
pay a pro rata portion of brokerage commissions for shares purchased
2
<PAGE>
THE SINGAPORE FUND, INC.
- ----------------------------------------------------------------------
GENERAL INFORMATION (CONCLUDED)
- --------------------------------------------------------------------------------
on the NYSE or otherwise on the open market by the Plan Agent. For purchases
from voluntary cash payments, participants must pay a nominal service fee of
$0.75 for each investment in addition to a pro rata portion of the brokerage
commission.
WHAT ARE THE TAX IMPLICATIONS? The automatic reinvestment of dividends and
distributions does not relieve you of any income tax which may be payable (or
required to be withheld) on such dividends and distributions. In addition, the
Plan Agent will reinvest dividends for foreign participants and for any
participants subject to federal backup withholding after the deduction of the
amounts required to be withheld.
PLEASE NOTE THAT, IF YOU PARTICIPATE IN THE PLAN THROUGH A BROKERAGE
ACCOUNT, YOU MAY NOT BE ABLE TO CONTINUE AS A PARTICIPANT IF YOU TRANSFER THOSE
SHARES TO ANOTHER BROKER. CONTACT YOUR BROKER OR NOMINEE OR THE PLAN AGENT TO
ASCERTAIN WHAT IS THE BEST ARRANGEMENT FOR YOU TO PARTICIPATE IN THE PLAN.
3
<PAGE>
THE SINGAPORE FUND, INC.
- ----------------------------------------------------------------------
December 5, 1996
DEAR SHAREHOLDERS:
We are pleased to present the Annual Report of The Singapore Fund, Inc. (the
"Fund") for the fiscal year ended October 31, 1996.
STOCK MARKET REVIEW
For the year ended October 31, 1996, the Singapore stock market rose by 3.5%
as measured by the DBS 50 Index ("DBS 50"). Although the DBS 50 ended slightly
up for the fiscal year, performance was characterized by the market making a
sharp run-up early in the year and then giving up nearly all gains later in the
year.
During the earlier part of the year, a resurgence of foreign interest pushed
the market strongly upward. Foreign investors were attracted by the good
valuations and sound fundamentals of the local and Asian markets. During this
time, the Singapore banks were buoyed by declining cost of funds, which, in
turn, resulted in record spreads. Lending rates were sustained by a strong
economy. At the same time, residential properties witnessed a spate of pent-up
demand which resulted in strong take-up rates for new project launches. From the
lows of November 1995, the DBS 50 rose about 23.0% to the highs in February
1996.
The market quickly subdued as Budget Day in February approached. Worried by
China-Taiwan tensions and Wall Street's one-day crash, which arose from interest
rate fears, liquidity in the Singapore market evaporated. Investors had turned
their attention to the speculative Malaysian Second Board and the residential
property market. This decidedly speculative environment was to have direct
consequences later in May when the government implemented measures to curb
property speculation.
From here on, market sentiment was further dampened by a slowdown in the
Singapore economy. The Gross Domestic Product ("GDP") growth figures for the
first and second quarters were a revised 11.4% and 7.5%, respectively. The
recently released third quarter growth was just 3.2%. Sentiment was badly
battered and the DBS 50 fell to a low of 516.25 on October 21, 1996. Recently,
there has been a mini-rally in the local market as investors began to realize
that the electronics sector is showing signs of recovery. The economy also
appears to be bottoming.
During the period reported, the Singapore Dollar ("SGD") weakened against
the U.S. Dollar ("USD") by 0.4%. Hence, the DBS 50 has risen by 3.9% in USD
terms.
The Malaysian market had a much better year. The Kuala Lumpur Stock Exchange
Composite Index ("KLCI") rose by 22.0% to 1168.31 on October 31, 1996. The
Malaysian market climbed steadily throughout the year.
The year started with the market being hit by a host of negative news on the
economy. Investors were unhappy with the Malaysian government's apparent lack of
conviction to slow what appeared to be an overheating economy and there were
fears of a power struggle within the ruling party, the United Malays National
Organization ("UMNO"). However, investors gradually decided that the
contractionary measures imposed in the budget would slowly bring about an
economic soft-landing and that fears of any power struggle within the UMNO were
unfounded.
4
<PAGE>
THE SINGAPORE FUND, INC.
- ----------------------------------------------------------------------
The outlook on interest rates in Malaysia has also seen a dramatic change.
At the start of the period under review, private sector economists were looking
for a 0.8% rise in interest rates. The view today is that the current account
deficit has turned a corner and economists favor a cut in interest rates.
The Malaysian Ringgit made a small gain against the USD. In USD terms, the
KLCI has risen by 22.8%.
FUND PERFORMANCE
As of October 31, 1996, the Fund's total net assets were approximately USD
115.6 million, equivalent to a net asset value ("NAV") of USD 12.59 per share.
The Fund started the fiscal year 1996 at USD 13.42. During the year, on December
28, 1995, the Fund paid a dividend of USD 0.9680 per share. Adjusting for this
dividend amount, the Fund's net asset value increased by 1.0% for the fiscal
year.
In the first half, the Fund under-performed as it missed out on the
performance of Singapore Telecom, which pushed up the DBS 50. Also, our holding
of secondary stocks did not help the portfolio when, in early 1996, a bullish
market fueled by overseas funds concentrated on blue chip stocks. The portfolio
was repositioned in mid-year and action was taken to sell some of the secondary
stocks. Funds were re-deployed into blue chip stocks expected to bounce strongly
from oversold positions and a recovery in the economy. The strategy worked as
the Fund significantly outperformed the benchmark in the second half.
The portfolio's investment in Malaysia was increased gradually from about
8.0% to 16.0% during the year. The growth stocks that were chosen helped
portfolio performance.
The Fund ended the year in positive territory, returning 1.0%. The
portfolio, nevertheless, still trailed the benchmark by 2.9% (in USD terms) over
the 1996 fiscal year. The Fund's management, however, believes that the
out-performance in the last six months may continue into the next year.
The Fund ended the year with 7.3% in cash or equivalents and other net
assets.
ECONOMIC REVIEW AND OUTLOOK
In the third quarter of 1996, the Economic Survey, published by the
Singapore Ministry of Trade and Industry ("MTI"), stated that GDP growth
moderated from 11.4% and 7.5% in the first two quarters, respectively, to 3.2%
this quarter.
To a large extent, the economic slowdown is due to the sustained moderation
in global electronics demand. The manufacturing sector declined by 4.3%,
compared with 6.5% growth in the second quarter. The manufacturing sector
accounts for about 25.0% of GDP and has significant spin-off effects on other
sectors. Apart from disk drives, computer peripherals and printed circuit board
assembly, all other segments of the electronics sector experienced a fall in
demand. MTI attributed this to the world-wide electronics slowdown. The other
non-electronics sectors performed weakly due to a mixture of cyclical and
structural factors. A number of electronics-related industries, such as
fabricated metal products, electrical machinery and appliances, machinery and
plastic products were all adversely affected by weak demand from the electronics
industry.
On the bright side, manufacturing investment commitments ("MIC") rose SGD
0.1 billion to SGD 2.5 billion as compared to the previous quarter. On a
year-to-date basis, MIC at SGD 6.4 billion is 36% higher than the first three
quarters of 1995. The other sectors of the economy did not register negative
growth. The construction sector was the most robust, with growth of 13.6% in the
third quarter of 1996. This was boosted by residential construction and civil
engineering work. Growth in the commerce sector slowed to 2.7% in the third
5
<PAGE>
THE SINGAPORE FUND, INC.
- ----------------------------------------------------------------------
quarter, from 9.8% and 6.1% in the first two quarters of the year, respectively.
This was due to a slowdown in regional growth and re-export trade as well as
weak retail sales. The financial and business services sector grew by 6.6%, as
compared to the 7.1% growth posted in the previous quarter. This was despite the
financial services sub-sector being hampered by a quiet stock market and thus
registering a modest 3.3% growth. The transport and communications sector grew
by 6.2%, supported by decent air transport and communications sub-sector growth.
In the same report, productivity showed a decline of 2.8% in the third
quarter of 1996, compared to growth of 4.2% and 1.0% in the two previous
quarters, respectively. Unit Labor Cost increased by 10.0% and Unit Business
Cost increased by 5.5%. This typically happens when the Singapore economy sees a
slowdown in demand, during which the labor market is very tight and most
companies are reluctant to layoff a portion of their workforce.
Inflation remained subdued at 1.3%, as measured in terms of the Consumer
Price Index. This represents a rise of only 0.2% over the previous quarter.
The outlook for the Singapore economy is mildly pessimistic. However, the
Composite Leading Index (CLI), an indicator of economic activity for the
forthcoming three quarters, rose for the first time in a year. The MTI has
lowered its full year 1996 forecast to 6.0%, but has stated that it expects the
economy to recover next year and forecasts GDP growth of between 6.0% and 8.0%
for 1997.
PORTFOLIO STRATEGY
The Singapore economy is undergoing a cyclical downturn, exaggerated by the
impact of planned structural changes in Singapore industries. The old industries
are either being re-invigorated or abandoned for newer industries. In some
cases, the answer was to shift and replicate overseas. Future GDP growth
patterns will be determined by this change-over of industries. The GDP growth of
around 10.0% per annum over the last few years will slow to a more sustainable
and still attractive figure of 5.0% to 7.0% per annum.
There are two main features to the current cyclical economic slowdown. One
is the weak global electronics industry. There are encouraging signs of a
recovery in this sector and the consensus is that the recovery will happen
strongly next year. It is an industry which has secular growth potential, but is
inherently volatile in the short-term. The other feature is the Government's
efforts to slow what is a very fast-growing economy. The country is economically
rich, and therefore robust in the face of short-term adversity. The current
measures are more designed to prevent excesses from damaging the economy than,
out of necessity, to tighten the belt as seen in indebted nations. The Fund's
management expects these two factors to turn positive in the next year.
Hence, we have adopted some basic strategies for Singapore stocks. One is to
merely remain fully invested as the oversold position of the market reverses.
Blue chip stocks in Singapore are cheap at current levels. Stocks are trading at
price-earnings multiples of 19 and 18 times on 1996 and 1997 prospective
earnings, respectively. It is our view that earnings forecasts by analysts risk
undershooting actual earnings in the next year. This provides good buying
opportunities into top quality stocks in Singapore. There will also be a gradual
adjustment to investors' expectations and demand on the Singapore market. Market
participants have been accustomed to economic growth of 10.0% per annum. The
prospective annual growth of 5.0% to 7.0% for the next few years is hardly going
to be terminal for the economy and share market. This may result in a re-rating
and support for the price-earnings multiple in Singapore.
6
<PAGE>
THE SINGAPORE FUND, INC.
- ----------------------------------------------------------------------
The other strategy is to position the portfolio with companies expected to
benefit from overseas earnings. We believe the payback time for overseas
investments is happening now and will become more pronounced in the next few
years. A more restrained Singapore dollar will help improve these companies'
earnings.
In the other ASEAN markets, our strategy remains essentially that of picking
growth stocks; in particular, choosing those facing temporary setbacks from poor
market sentiments induced by the current slowing economies.
ASEAN economies are slowly overcoming their overheating problems. These
economies are beginning to see a slowdown in internal demand, especially
consumer demand, and hence mitigating the need for high interest rates. However,
on the current account deficit front, the positives of slowing demand and
imports are overshadowed by slowing exports. The latter is the result of the
decline in world economic growth, but exaggerated by the global electronic
slowdown. It is the Fund's view that, once exports recover, the economic
fundamentals for these high-saving economies will again look very attractive.
The Asian growth story has some way to go. Our moves in these markets will
be driven by stock selection and buying into decidedly undervalued markets.
The Fund has not invested, and presently does not intend to invest, in
derivative securities. Although foreign currency hedging is permitted by the
Fund's investment policies, the Fund has not engaged in any foreign currency
hedging.
PORTFOLIO MANAGEMENT
Mr. Tan Seng Hock was appointed as the Fund's portfolio manager in May 1996,
and is responsible for the day-to-day management of the Fund's portfolio. Mr.
Tan joined DBS Asset Management Ltd., of which the Fund's Manager, DBS Asset
Management (United States) Pte. Ltd. is a wholly-owned subsidiary, in November
1995 as an Investment Manager. From 1987 to 1994, Mr. Tan was Head of
Investments at ANZ Investments Ltd. and Fund Manager--International & Strategy
at Norwich Union Investment Management in New Zealand.
We would like to thank you for your participation in The Singapore Fund,
Inc. and would be pleased to hear from you.
<TABLE>
<S> <C>
Sincerely,
[SIG] [SIG]
SHUICHI KOMORI JAMES MCCARTHY
CHAIRMAN OF THE BOARD PRESIDENT
</TABLE>
7
<PAGE>
THE SINGAPORE FUND, INC.
- ----------------------------------------------------------------------
PORTFOLIO OF INVESTMENTS
OCTOBER 31, 1996
- --------------------------------------------------------------------------------
- -------------------------------------------
COMMON STOCKS AND WARRANTS--92.71%
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SHARES VALUE
- ---------- ------------
<C> <S> <C>
SINGAPORE--77.14%
BANKS & FINANCIAL SERVICES--20.27%
1,268,000 Hong Leong Finance Ltd.
(Foreign)*........................ $ 3,868,322
790,000 Keppel Bank of Singapore Ltd....... 2,163,462
136,250 Keppel Bank of Singapore Ltd.
Warrants 2000+(1)................. 134,365
630,300 Oversea-Chinese Banking Corporation
Ltd. (Foreign)*................... 7,199,596
1,036,000 United Overseas Bank Ltd.
(Foreign)*........................ 10,069,670
------------
23,435,415
------------
BUILDING MATERIALS--1.86%
1,250,000 NatSteel Ltd....................... 2,155,020
------------
CONSTRUCTION ENGINEERING--4.79%
3,015,000 Amtek Engineering Ltd.............. 5,240,688
100,000 Jurong Engineering Ltd............. 296,559
------------
5,537,247
------------
DIVERSIFIED--1.13%
600,000 Singapore Technologies Industrial
Corporation++..................... 1,302,590
------------
FOOD, BEVERAGE, TOBACCO--9.31%
200,000 Cerebos Pacific Ltd................ 1,546,648
540,000 Fraser & Neave Ltd................. 5,363,604
1,035,000 Rothmans Industries Ltd............ 3,855,090
------------
10,765,342
------------
</TABLE>
<TABLE>
<CAPTION>
SHARES VALUE
- ---------- ------------
<C> <S> <C>
INDUSTRIAL--12.79%
740,400 Acma Ltd........................... $ 1,638,913
74,000 Clipsal Industries Ltd. Warrants
1998+(2).......................... 84,360
3,518,000 CSA Holdings Ltd................... 3,793,799
718,000 GP Batteries International Ltd..... 2,082,200
284,500 GP Batteries International Ltd.
Warrants 2000+(3)................. 213,375
900,000 Singapore Technologies Automotive
Ltd. (Foreign)*++................. 1,813,409
1,017,000 ST Electronic & Engineering Ltd.
(Foreign)*++...................... 887,485
1,740,000 Wing Tai Holdings Ltd.............. 4,271,302
------------
14,784,843
------------
PROPERTY DEVELOPMENT--12.04%
728,000 City Developments Ltd.............. 5,733,097
1,100,000 DBS Land Ltd.++.................... 3,465,059
372,000 Singapore Land Ltd................. 2,058,602
820,000 Straits Steamship Land Company
Ltd............................... 2,513,232
150,000 Straits Steamship Land Company Ltd.
Warrants 2000+(4)................. 154,310
------------
13,924,300
------------
</TABLE>
8
<PAGE>
THE SINGAPORE FUND, INC.
- ----------------------------------------------------------------------
PORTFOLIO OF INVESTMENTS (CONTINUED)
OCTOBER 31, 1996
- --------------------------------------------------------------------------------
COMMON STOCKS AND WARRANTS (CONCLUDED)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SHARES VALUE
- ---------- ------------
<C> <S> <C>
SHIPYARDS--5.47%
300,000 Jurong Shipyard Ltd................ $ 1,404,753
660,000 Keppel Corporation Ltd.++.......... 4,916,637
------------
6,321,390
------------
TELECOMMUNICATIONS--4.03%
2,000,000 Singapore Telecommunications
Ltd.++............................ 4,654,133
------------
TRANSPORTATION--AIR--5.45%
716,000 Singapore Airlines Ltd.
(Foreign)*++...................... 6,298,971
------------
Total Singapore Common Stocks and Warrants.....
89,179,251
------------
MALAYSIA--15.57%
BUILDING MATERIALS--3.43%
700,000 Jaya Tiasa Holdings Berhad......... 3,961,219
------------
CHEMICALS--1.86%
700,000 Chemical Company of Malaysia
Berhad............................ 2,146,814
------------
ENTERTAINMENT--3.58%
2,400,000 Magnum Corporation Berhad.......... 4,140,879
------------
MACHINERY--4.96%
1,250,000 UMW Holdings Berhad................ 5,738,029
------------
REAL ESTATE--1.74%
550,000 Country Heights Holdings Berhad.... 1,665,018
</TABLE>
<TABLE>
<CAPTION>
SHARES VALUE
- ---------- ------------
<C> <S> <C>
275,000 Country Heights Holdings Berhad
Warrants 2000+(5)................. $ 348,239
------------
2,013,257
------------
Total Malaysia Common Stocks and Warrants......
18,000,198
------------
Total Common Stocks and Warrants (Cost
$105,143,446)................................ 107,179,449
------------
</TABLE>
- -------------------------------------------
TIME DEPOSITS--5.42%
- -------------------------------------------
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT
(000) VALUE
- ---------- ------------
<C> <S> <C>
U.S. DOLLAR--0.10%
92 Bank of New York, 3.4000% due
11/1/96........................... 92,327
24 Citibank, Singapore, 4.5625% due
11/1/96........................... 24,467
------------
Total U.S. Dollar Time Deposits................ 116,794
------------
SINGAPORE DOLLAR--5.32%
8,672 Citibank, Singapore, 2.4643% to
3.1875%, due 11/1/96 to 11/7/96... 6,152,388
------------
Total Time Deposits (Cost $6,267,256)..........
6,269,182
------------
</TABLE>
9
<PAGE>
THE SINGAPORE FUND, INC.
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PORTFOLIO OF INVESTMENTS (CONCLUDED)
OCTOBER 31, 1996
- --------------------------------------------------------------------------------
- -------------------------------------------
<TABLE>
<CAPTION>
VALUE
------------
<C> <S> <C>
Total Investments--98.13%
(Cost $111,410,702).......................... $113,448,631
Other assets less liabilities--1.87%........... 2,156,125
------------
NET ASSETS (Applicable to 9,184,963 shares of
capital stock outstanding; equivalent to
$12.59 per share)--100.00%................... $115,604,756
------------
------------
</TABLE>
- ------------------------
* Foreign shares of the above issues are those held by non-Singapore
residents. Ownership of such shares is generally limited and subject to a
premium to local shares (those held by residents of Singapore).
(1) Each warrant entitles holders to buy one share of Common Stock for SGD
3.20.
(2) Each warrant entitles holders to buy one share of Common Stock for USD
2.03.
(3) Each warrant entitles holders to buy one share of Common Stock for USD
2.10.
(4) Each warrant entitles holders to buy one share of Common Stock for SGD
3.00.
(5) Each warrant entitles holders to buy one share of Common Stock for MYR
5.30.
+ Non-income producing securities.
++ Deemed to be an affiliated issuer.
- -------------------------------------------
TEN LARGEST COMMON STOCK
CLASSIFICATIONS HELD
OCTOBER 31, 1996
- -------------------------------------------
<TABLE>
<CAPTION>
PERCENT OF
INDUSTRY NET ASSETS
- ----------------------------------- ----------
<S> <C>
Banks & Financial Services**....... 20.27%
Industrial**....................... 12.79
Property Development**............. 12.04
Food, Beverage, Tobacco............ 9.31
Shipyards.......................... 5.47
Transportation--Air................ 5.45
Building Materials................. 5.29
Machinery.......................... 4.96
Construction Engineering........... 4.79
Telecommunications................. 4.03
</TABLE>
- ------------------------
** Includes the value of warrants.
- -------------------------------------------
TEN LARGEST COMMON STOCK
POSITIONS HELD
OCTOBER 31, 1996
- -------------------------------------------
<TABLE>
<CAPTION>
PERCENT OF
ISSUE NET ASSETS
- ----------------------------------- ----------
<S> <C>
United Overseas Bank Ltd.
(Foreign)......................... 8.71%
Oversea-Chinese Banking Corporation
Ltd. (Foreign).................... 6.23
Singapore Airlines Ltd.
(Foreign)......................... 5.45
UMW Holdings Berhad................ 4.96
City Developments Ltd.............. 4.96
Fraser & Neave Ltd................. 4.64
Amtek Engineering Ltd.............. 4.53
Keppel Corporation Ltd............. 4.25
Singapore Telecommunications
Ltd............................... 4.03
Wing Tai Holdings Ltd.............. 3.69
</TABLE>
See accompanying notes to financial statements.
10
<PAGE>
THE SINGAPORE FUND, INC.
- ----------------------------------------------------------------------
STATEMENT OF ASSETS AND LIABILITIES
OCTOBER 31, 1996
- --------------------------------------------------------------------------------
<TABLE>
<S> <C> <C>
ASSETS
Investment in securities, at value:
Unaffiliated securities
(cost--$85,423,182)..................... $ 90,110,347
Affiliated securities
(cost--$25,987,520)..................... 23,338,284 $ 113,448,631
------------
Cash denominated in foreign currency
(cost--$3,632,083)........................ 3,592,611
Interest and dividends receivable.......... 61,451
Prepaid expenses........................... 30,413
-------------
Total assets............................. 117,133,106
-------------
LIABILITIES
Payable for securities purchased........... 1,258,216
Payable to investment manager.............. 70,634
Payable to investment adviser.............. 35,874
Payable to administrator................... 19,608
Accrued expenses and other liabilities..... 144,018
-------------
Total liabilities........................ 1,528,350
-------------
NET ASSETS
Capital stock, $0.01 par value per share;
total 100,000,000 shares authorized;
9,184,963 shares issued and outstanding... 91,850
Paid-in capital in excess of par value..... 110,085,557
Accumulated net investment loss............ (4,699)
Undistributed net realized gain on
investments............................... 3,438,290
Net unrealized appreciation on investments
and other assets and
liabilities denominated in foreign
currency.................................. 1,993,758
-------------
Net assets applicable to shares
outstanding............................. $ 115,604,756
-------------
-------------
NET ASSET VALUE PER SHARE............ $ 12.59
-------------
-------------
</TABLE>
See accompanying notes to financial statements.
11
<PAGE>
THE SINGAPORE FUND, INC.
- ----------------------------------------------------------------------
STATEMENT OF OPERATIONS
FOR THE YEAR ENDED OCTOBER 31, 1996
- --------------------------------------------------------------------------------
<TABLE>
<S> <C> <C>
INVESTMENT INCOME:
Dividends:
Unaffiliated securities (net of
withholding taxes of $314,527).......... $ 985,273
Affiliated securities (net of withholding
taxes of $84,422)....................... 251,756 $ 1,237,029
------------
Interest................................... 407,968
------------
Total investment income.................. 1,644,997
------------
EXPENSES:
Investment management fee and expenses..... 869,856
Investment advisory fee and expenses....... 438,680
Administration fees and expenses........... 240,392
Custodian fees and expenses................ 235,823
Legal fees and expenses.................... 87,799
Reports and notices to shareholders........ 86,196
Osaka Securities Exchange fees and
expenses.................................. 80,921
Audit and tax services..................... 61,750
Insurance expense.......................... 46,178
Directors' fees and expenses............... 30,929
Transfer agency fee and expenses........... 21,343
Other...................................... 27,637
------------
Total expenses........................... 2,227,504
------------
NET INVESTMENT LOSS.......................... (582,507)
------------
REALIZED AND UNREALIZED GAINS (LOSSES) FROM
INVESTMENT ACTIVITIES
AND FOREIGN CURRENCY TRANSACTIONS:
Net realized gains on investments:
Unaffiliated securities.................. 3,082,558
Affiliated securities.................... 1,010,627 4,093,185
------------
Net realized foreign currency transaction
gains..................................... 84,875
Net change in unrealized appreciation
(depreciation) on investments in equity
securities................................ (2,342,514)
Net change in unrealized appreciation
(depreciation) on translation of short-
term investments, cash and other assets
and liabilities denominated in foreign
currency.................................. 6,279
------------
Net realized and unrealized gains from
investment activities and foreign currency
transactions................................ 1,841,825
------------
NET INCREASE IN NET ASSETS RESULTING FROM
OPERATIONS.................................. $ 1,259,318
------------
------------
</TABLE>
See accompanying notes to financial statements.
12
<PAGE>
THE SINGAPORE FUND, INC.
- ----------------------------------------------------------------------
STATEMENT OF CHANGES IN NET ASSETS
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
FOR THE YEARS ENDED
OCTOBER 31,
-------------------------------
1996 1995
------------- -------------
<S> <C> <C>
INCREASE (DECREASE) IN NET ASSETS FROM
OPERATIONS:
Net investment loss........................ $ (582,507) $ (515,444)
Net realized gain on:
Investments.............................. 4,093,185 8,534,685
Foreign currency transactions............ 84,875 697,279
Net change in unrealized appreciation
(depreciation) on:
Investments in equity securities......... (2,342,514) (19,495,661)
Translation of short-term investments and
other assets and liabilities denominated
in foreign currency..................... 6,279 (116,537)
------------- -------------
Net increase (decrease) in net assets
resulting from operations................. 1,259,318 (10,895,678)
------------- -------------
DIVIDENDS AND DISTRIBUTIONS TO SHAREHOLDERS
FROM:
Net realized gains from investment and
foreign currency transactions............. (8,866,573) (19,721,449)
------------- -------------
FROM CAPITAL STOCK TRANSACTIONS:
Sale of capital stock resulting from:
Reinvestment of dividends................ 330,635 640,798
Exercise of rights issued................ -- 26,797,140
------------- -------------
Net increase in net assets derived from
capital stock transactions................ 330,635 27,437,938
------------- -------------
Net decrease in net assets................. (7,276,620) (3,179,189)
NET ASSETS:
Beginning of year.......................... 122,881,376 126,060,565
------------- -------------
End of year (including accumulated net
investment loss of $4,699
and $19,493, respectively)................ $ 115,604,756 $ 122,881,376
------------- -------------
------------- -------------
</TABLE>
See accompanying notes to financial statements.
13
<PAGE>
THE SINGAPORE FUND, INC.
- ----------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS
- --------------------------------------------------------------------------------
ORGANIZATION AND SIGNIFICANT ACCOUNTING POLICIES
The Singapore Fund, Inc. (the "Fund") was incorporated in Maryland on May
31, 1990 and commenced operations on July 31, 1990. It is registered with the
Securities and Exchange Commission as a closed-end, non-diversified management
investment company.
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 the preparation of its financial
statements. The preparation of financial statements in accordance with generally
accepted accounting principles requires management to make estimates and
assumptions that affect the amounts and disclosures in the financial statements.
Actual reporting results could differ from those estimates.
VALUATION OF INVESTMENTS--Securities which are listed on foreign stock
exchanges and for which market quotations are readily available are valued at
the last sale price on the exchange on which the securities are traded, as of
the close of business on the day the securities are being valued or, lacking any
sales on such day, at the closing price quoted for such securities. However, if
bid and asked quotations are available, such securities are valued at the mean
between the last current bid and asked prices, rather than at such quoted
closing price. Securities that are traded over-the-counter, if bid and asked
price quotations are available, are valued at the mean between the current bid
and asked prices, or, if such quotations are not available, are valued as
determined in good faith by the Board of Directors (the "Board") of the Fund. In
instances where quotations are not readily available or where the price as
determined by the above procedures is deemed not to represent fair market value,
fair value will be determined in such manner as the Board may prescribe.
Short-term investments having a maturity of 60 days or less are valued at
amortized cost, except where the Board determines that such valuation does not
represent the fair value of the investment. All other securities and assets are
valued at fair value as determined in good faith by, or under the direction of,
the Board.
FOREIGN CURRENCY TRANSLATION--The books and records of the Fund are
maintained in U.S. dollars as follows: (1) the foreign currency market value of
investment securities and other assets and liabilities stated in foreign
currencies are translated at the exchange rates prevailing at the end of the
period; and (2) purchases, sales, income and expenses are translated at the rate
of exchange prevailing on the respective dates of such transactions. The
resulting exchange gains and losses are included in the Statement of Operations.
The Fund does not generally isolate the effect of fluctuations in foreign
exchange rates from the effect of fluctuations in the market price of
securities.
TAX STATUS--The Fund intends to continue to distribute substantially all of
its taxable income and to comply with the minimum distribution and other
requirements of the Internal Revenue Code applicable to regulated investment
companies. Accordingly, no provision for federal income or excise taxes is
required. During the year ended October 31, 1996, the Fund was subject to
withholding tax, ranging from 26% to 32%, on certain income from its
investments.
The Fund continues to meet the conditions required to qualify for the
exemption from Singapore income tax, available to non-Singapore residents who
are beneficiaries of funds managed by approved fund managers, in respect of
certain types of income. Accordingly, no provision for Singapore income tax is
required.
14
<PAGE>
THE SINGAPORE FUND, INC.
- ----------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
- --------------------------------------------------------------------------------
INVESTMENT TRANSACTIONS AND INVESTMENT INCOME--Investment transactions are
recorded on the trade date (the date upon which the order to buy or sell is
executed). Realized and unrealized gains and losses from security and foreign
currency transactions are calculated on the identified cost basis. Dividend
income and corporate actions are recorded generally on the ex-date, except for
certain dividends and corporate actions involving foreign securities which may
be recorded after the ex-date, but recorded as soon as the Fund acquires
information regarding such dividends or corporate actions. Interest income is
recorded on an accrual basis.
DIVIDENDS AND DISTRIBUTIONS TO SHAREHOLDERS--The Fund records dividends and
distributions payable to its shareholders on the ex-dividend date. The amount of
dividends and distributions from net investment income and net realized capital
gains are determined in accordance with federal income tax regulations, which
may differ from generally accepted accounting principles. These book basis/tax
basis ("book/tax") differences are either considered temporary or permanent in
nature. To the extent these differences are permanent in nature, such amounts
are reclassified within the capital accounts based on their federal tax-basis
treatment; temporary differences do not require reclassifications. Dividends and
distributions which exceed net investment income and net realized capital gains
for financial reporting purposes but not for tax purposes are reported as
dividends in excess of net investment income or distributions in excess of net
realized capital gains. To the extent they exceed net investment income and net
realized capital gains for tax purposes, they are reported as distributions of
paid-in-capital.
FORWARD FOREIGN CURRENCY CONTRACTS--The Fund may enter into forward foreign
currency exchange contracts in connection with planned purchases or sales of
securities or to hedge the U.S. dollar value of its assets denominated in a
particular currency, subject to a maximum limitation of 20% of the value of its
total assets committed to the consummation of such forward foreign currency
contracts. In addition, the Fund will not take positions in foreign forward
currency contracts where the settlement commitment exceeds the value of its
assets denominated in the currency of the contract. If the Fund enters into
forward foreign currency contracts, its custodian or subcustodian will maintain
cash or readily marketable securities in a segregated account of the Fund in an
amount equal to the value of the Fund's total assets committed to the
consummation of such contracts. Risks may arise upon entering into these
contracts from the potential inability of counterparties to meet the terms of
their contracts and from unanticipated movements in the value of a foreign
currency relative to the U.S. dollar.
INVESTMENT MANAGER AND INVESTMENT ADVISOR
The Fund has entered into an Investment Management Agreement (the
"Management Agreement") with DBS Asset Management (United States) Pte. Ltd. (the
"Manager"). Pursuant to the Management Agreement, the Manager makes investment
management decisions relating to the Fund's assets. For such services, the Fund
pays the Manager a monthly fee at an annual rate of 0.80% of the first $50
million of the Fund's average weekly net assets and 0.66% of the Fund's average
weekly net assets in excess of $50 million. In addition, as permitted by the
Management Agreement, the Fund reimburses the Manager for its out-of-pocket
expenses related to the Fund. During the year ended October 31, 1996, expenses
of $6,529 were paid to the Manager, representing
15
<PAGE>
THE SINGAPORE FUND, INC.
- ----------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
- --------------------------------------------------------------------------------
reimbursement to the Manager of costs relating to the attendance by its
employees at meetings of the Fund's Board. During the year ended October 31,
1996, brokerage commissions of $12,441 were paid by the Fund to DBS Securities,
an affiliate of the Manager, in connection with portfolio transactions.
The Fund has entered into an Investment Advisory Agreement (the "Advisory
Agreement") with Daiwa International Capital Management (Singapore) Limited (the
"Adviser"), which provides general and specific investment advice to the Manager
with respect to the Fund's assets. The Fund pays the Adviser a monthly fee at an
annual rate of 0.40% of the first $50 million of the Fund's average weekly net
assets and 0.34% of the Fund's average weekly net assets in excess of $50
million. There were no brokerage commissions paid by the Fund during the year
ended October 31, 1996 to affiliates of the Adviser, in connection with
portfolio transactions.
ADMINISTRATOR AND CUSTODIAN AND OTHER RELATED PARTIES
Daiwa Securities Trust Company ("DST"), an affiliate of the Adviser,
provides certain administrative services to the Fund. For such services, the
Fund pays DST a monthly fee at an annual rate of 0.20% of the Fund's average
weekly net assets, with a minimum fee of $150,000.
DST also acts as custodian for the Fund's assets and appoints subcustodians
for the Fund's assets held outside of the United States. DST has appointed The
Development Bank of Singapore, Ltd. ("DBS Bank"), an affiliate of the Manager,
to act as the subcustodian for all of the cash and securities of the Fund held
in Singapore. As compensation for its services as custodian, DST receives a
monthly fee and reimbursement of out-of-pocket expenses related to the Fund.
Such expenses include the fees and out-of-pocket expenses of each of the
subcustodians. During the year ended October 31, 1996, DST earned $26,979 and
DBS Bank earned $208,440 from the Fund for their respective custodial services.
At October 31, 1996, the Fund owed to DST $19,608 and $39,738 for
administration and custodian fees, respectively. The latter amount includes fees
and expenses payable to DBS Bank totalling $37,240.
During the year ended October 31, 1996, the Fund paid or accrued
approximately $79,744 for legal services, in connection with the Fund's on-going
operations, to a law firm of which the Fund's Assistant Secretary is a partner.
INVESTMENTS IN SECURITIES AND FEDERAL INCOME TAX MATTERS
For federal income tax purposes, the cost of securities owned at October 31,
1996 was substantially the same as the cost of the securities for financial
statement purposes. At October 31, 1996, the net unrealized appreciation on
investments, excluding short-term securities, of $2,036,002 was composed of
gross appreciation of $9,190,759 for those investments having an excess of value
over cost, and gross depreciation of $7,154,757 for those investments having an
excess of cost over value. For the year ended October 31, 1996, the total
aggregate cost of purchases and net proceeds from sales of portfolio securities,
excluding the short-term securities, were $78,335,715 and $66,458,084,
respectively.
16
<PAGE>
THE SINGAPORE FUND, INC.
- ----------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
- --------------------------------------------------------------------------------
As of October 31, 1996, the Fund had permanent book/tax differences
primarily attributable to a net operating loss. To reflect reclassifications
arising from permanent book/tax differences for the year ended October 31, 1996,
undistributed net realized gain on investments was charged $1,018,346,
paid-in-capital was charged $120, accumulated net investment loss was credited
$597,301 and accumulated net realized loss on foreign currency transactions was
credited $421,165.
CONCENTRATION OF RISK
At October 31, 1996, the Fund had approximately 5% of its net assets
invested in time deposits of a first-tier U.S. financial institution located in
Singapore. While there is currently no rating system for Singapore debt
securities, the Fund invests only in short-term debt securities which the
Manager believes to be of high quality and subject to relatively low risk of
loss of principal or interest.
Investments in countries in which the Fund may invest may involve certain
considerations and risks not typically associated with U.S. investments as a
result of, among others, the possibility of future political and economic
developments and the level of governmental supervision and regulation of the
securities markets in which the Fund invests.
CAPITAL STOCK
There are 100,000,000 shares of $0.01 par value common stock authorized.
During the years ended October 31, 1996 and 1995, 25,237 and 45,381 shares,
respectively, were issued as a result of the reinvestment of dividends paid to
those shareholders electing to reinvest dividends.
Of the 9,184,963 shares outstanding at October 31, 1996, Daiwa Securities
America Inc., an affiliate of the Adviser and DST, owned 13,646 shares.
SUBSEQUENT EVENT
On December 5, 1996, a dividend was declared by the Board. The distribution
of $0.3790 per share is payable on December 26, 1996, to shareholders of record
at the close of business on December 16, 1996. The New York Stock Exchange has
determined that the ex-dividend date is December 12, 1996.
17
<PAGE>
THE SINGAPORE FUND, INC.
- ----------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS (CONCLUDED)
- --------------------------------------------------------------------------------
QUARTERLY RESULTS OF OPERATIONS (UNAUDITED)
<TABLE>
<CAPTION>
NET REALIZED AND
UNREALIZED GAINS
(LOSSES) ON NET INCREASE
INVESTMENTS AND (DECREASE) IN
NET FOREIGN CURRENCY NET
INVESTMENT INVESTMENT ASSETS RESULTING
INCOME INCOME (LOSS) TRANSACTIONS FROM OPERATIONS
------------- ------------- ---------------- ----------------
TOTAL PER TOTAL PER TOTAL PER TOTAL PER
QUARTER ENDED (000) SHARE (000) SHARE (000) SHARE (000) SHARE
- --------------------------------------- ------ ----- ----- ------ -------- ------ -------- ------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
January 31, 1996....................... $ 375 $0.04 $(176) $(0.02) $ 12,254 $ 1.33 $ 12,078 $ 1.31
April 30, 1996......................... 155 0.02 (423) (0.05) (1,468) (0.15) (1,891) (0.20)
July 31, 1996.......................... 675 0.07 110 0.01 (13,314) (1.45) (13,204) (1.44)
October 31, 1996....................... 440 0.05 (94) (0.01) 4,370 0.48 4,276 0.47
------ ----- ----- ------ -------- ------ -------- ------
For the year ended October 31, 1996.... $1,645 $0.18 ($583) $(0.07) $ 1,842 $ 0.21 $ 1,259 $ 0.14
------ ----- ----- ------ -------- ------ -------- ------
------ ----- ----- ------ -------- ------ -------- ------
January 31, 1995....................... $ 292 $0.04 $(280) $(0.04) $(18,947) $(2.76) $(19,227) $(2.80)
April 30, 1995......................... 227 0.03 (314) (0.05) 7,554 1.09 7,240 1.04
July 31, 1995.......................... 439 0.06 17 0.00 9,697 1.43 9,714 1.43
October 31, 1995....................... 627 0.09 61 0.02 (8,684) (1.19) (8,623) (1.17)
------ ----- ----- ------ -------- ------ -------- ------
For the year ended October 31, 1995.... $1,585 $0.22 $(516) $(0.07) $(10,380) $(1.43) $(10,896) $(1.50)
------ ----- ----- ------ -------- ------ -------- ------
------ ----- ----- ------ -------- ------ -------- ------
</TABLE>
PER SHARE SELECTED QUARTERLY FINANCIAL DATA (UNAUDITED)
<TABLE>
<CAPTION>
NET ASSET MARKET
VALUE PRICE* SHARE
-------------- ---------------- VOLUME*
QUARTER ENDED HIGH LOW HIGH LOW (000)
- --------------------------------------- ------ ------ ------- ------- -------
<S> <C> <C> <C> <C> <C>
January 31, 1996....................... $13.76 $12.79 $15 3/4 $12 1/2 1,804
April 30, 1996......................... 13.88 13.27 15 13 5/8 934
July 31, 1996.......................... 13.48 12.12 14 11 3/8 1,213
October 31, 1996....................... 12.93 12.20 12 3/4 11 1/2 816
January 31, 1995....................... 18.18 12.57 18 1/4 12 3/4 1,150
April 30, 1995......................... 13.84 12.94 15 1/2 13 1/4 609
July 31, 1995.......................... 15.33 13.82 17 3/8 14 3/8 887
October 31, 1995....................... 15.02 13.39 15 7/8 12 3/4 2,060
</TABLE>
- ------------------------
* As reported on the New York Stock Exchange.
18
<PAGE>
THE SINGAPORE FUND, INC.
- ----------------------------------------------------------------------
FINANCIAL HIGHLIGHTS
- --------------------------------------------------------------------------------
Selected data for a share of capital stock outstanding during each year is
presented below:
<TABLE>
<CAPTION>
FOR THE YEARS ENDED OCTOBER 31,
------------------------------------------------------------------------
1996 1995 1994 1993 1992
------------ ------------ ------------ ------------ ------------
<S> <C> <C> <C> <C> <C>
Net asset value, beginning of year...... $ 13.42 $ 18.49 $ 17.23 $ 10.38 $ 11.72
------------ ------------ ------------ ------------ ------------
Net investment loss..................... (0.07) (0.07) (0.01) (0.14) (0.08)
Net realized and unrealized gains
(losses) on investments and foreign
currency transactions.................. 0.21 (1.43) 2.66 7.32 (0.66)
------------ ------------ ------------ ------------ ------------
Net increase (decrease) in net asset
value resulting from operations........ 0.14 (1.50) 2.65 7.18 (0.74)
------------ ------------ ------------ ------------ ------------
Less: dividends and distributions to
shareholders
Net investment income................. -- -- -- -- (0.08)
Net realized gains from investments
and foreign currency transactions.... (0.97) (2.89) (1.03) (0.33) (0.52)
------------ ------------ ------------ ------------ ------------
Total dividends and distributions to
shareholders........................... (0.97) (2.89) (1.03) (0.33) (0.60)
------------ ------------ ------------ ------------ ------------
Dilutive effect of rights offering...... -- (0.64) (0.30) -- --
------------ ------------ ------------ ------------ ------------
Offering costs charged to paid-in
capital in excess of par value......... -- (0.04) (0.06) -- --
------------ ------------ ------------ ------------ ------------
Net asset value, end of year............ $ 12.59 $ 13.42 $ 18.49 $ 17.23 $ 10.38
------------ ------------ ------------ ------------ ------------
------------ ------------ ------------ ------------ ------------
Per share market value, end of year..... $ 12.125 $ 13.500 $ 18.000 $ 19.750 $ 10.250
------------ ------------ ------------ ------------ ------------
------------ ------------ ------------ ------------ ------------
Total investment return:
Based on market price at beginning and
end of year, assuming reinvestment of
dividends*........................... (3.54)% (6.89)% (0.19)% 99.02% 9.95%
Based on net asset value at beginning
and end of year, assuming
reinvestment of dividends*........... 0.76% (10.06)% 18.39% 71.46% (6.19)%
Ratios and supplemental data:
Net assets, end of year (in
millions)............................ $115.6 $122.9 $126.1 $ 87.8 $ 52.8
Ratios to average net assets of:
Expenses+........................... 1.85% 2.01% 1.90% 2.42% 2.63%
Net investment loss+................ (0.48)% (0.49)% (0.08)% (1.05)% (0.70)%
Portfolio turnover.................... 62.78% 62.85% 82.12% 90.19% 23.66%
Average commission rate per share..... $0.0194 N/A N/A N/A N/A
</TABLE>
- --------------------------
* For the years ended October 31, 1995 and 1994, the total investment
return includes the benefit of shares resulting from the exercise of
the rights.
+ Ratios for the years ended October 31, 1993 and 1992 include the
amortization of certain initial and non-recurring expenses totaling
$32,519 and $162,602, respectively, related to the listing of the
Fund's shares on the Osaka Securities Exchange. If such expenses had
not been included, the ratios of expenses and of net investment loss
to average net assets would have been 2.38% and (1.01)% for the year
ended October 31, 1993, and 2.35% and (0.42)%, for the year ended
October 31, 1992.
19
<PAGE>
THE SINGAPORE FUND, INC.
- ----------------------------------------------------------------------
REPORT OF INDEPENDENT ACCOUNTANTS
- --------------------------------------------------------------------------------
To the Shareholders and
Board of Directors of
The Singapore Fund, Inc.
In our opinion, the accompanying statement of assets and liabilities,
including the portfolio of investments, and the related statements of operations
and of changes in net assets and the financial highlights present fairly, in all
material respects, the financial position of The Singapore Fund, Inc. (the
"Fund") at October 31, 1996, the results of its operations for the year then
ended, the changes in its net assets for each of the two years in the period
then ended and the financial highlights for each of the five years in the period
then ended, in conformity with generally accepted accounting principles. These
financial statements and financial highlights (hereafter referred to as
"financial statements") are the responsibility of the Fund's management; our
responsibility is to express an opinion on these financial statements based on
our audits. We conducted our audits of these financial statements in accordance
with generally accepted auditing standards which require that we plan and
perform the audit to obtain reasonable assurance about whether the financial
statements are free of material misstatement. An audit includes examining, on a
test basis, evidence supporting the amounts and disclosures in the financial
statements, assessing the accounting principles used and significant estimates
made by management, and evaluating the overall financial statement presentation.
We believe that our audits, which included confirmation of securities at October
31, 1996 by correspondence with the custodian and brokers, provide a reasonable
basis for the opinion expressed above.
PRICE WATERHOUSE LLP
1177 Avenue of the Americas
New York, New York 10036
December 5, 1996
20
<PAGE>
THE SINGAPORE FUND, INC.
- ----------------------------------------------------------------------
TAX INFORMATION
- --------------------------------------------------------------------------------
The Fund is required by Subchapter M of the Internal Revenue Code of 1986,
as amended, to advise you within 60 days of the Fund's fiscal year end (October
31, 1996) as to the federal tax status of distributions received by you during
such fiscal year. Accordingly, the Fund is hereby advising you that, of the
$0.9680 per share distribution paid during the fiscal year on December 28, 1995,
$0.2960 represented an ordinary income dividend, and $0.6720 represented a
long-term capital gain distribution.
In addition, on December 5, 1996, the Board of Directors of the Fund
declared a total distribution of $0.3790 per share, of which $0.1360 represents
a dividend from ordinary income and $0.2430 represents a distribution of
long-term capital gains.
During the Fund's fiscal year ended October 31, 1996, the Fund paid $413,743
in foreign taxes. The Fund has elected to give the benefit of the foreign tax
credit to its shareholders.
Because the Fund's fiscal year is not the calendar year, a notification will
be sent to shareholders in respect of calendar year 1996. This notification,
which will reflect the amount of income from foreign sources to be used by
calendar year taxpayers on their federal income tax returns, as well as the
amount of any foreign tax credit available to its shareholders, will be made in
conjunction with Form 1099 DIV and will be mailed in January 1997.
SHAREHOLDERS ARE STRONGLY ADVISED TO CONSULT THEIR OWN TAX ADVISORS WITH
RESPECT TO THE TAX CONSEQUENCES OF THEIR INVESTMENT IN THE FUND.
21
<PAGE>
- ----------------------------------------
BOARD OF DIRECTORS
Suichi Komori, CHAIRMAN
David G. Harmer
James McCarthy
Alfred C. Morley
Frederick W. Zuckerman
- --------------------------------------------
OFFICERS
James McCarthy
PRESIDENT
Daniel F. Barry
VICE PRESIDENT
Lawrence Jacob
SECRETARY
Edward J. Grace
TREASURER
John J. O'Keefe
ASSISTANT TREASURER
Laurence E. Cranch
ASSISTANT SECRETARY
- --------------------------------------------
ADDRESS OF THE FUND
c/o Daiwa Securities Trust Company
One Evertrust Plaza, 9th Floor
Jersey City, New Jersey 07302
- --------------------------------------------
INVESTMENT MANAGER
DBS Asset Management (United States) Pte. Ltd.
INVESTMENT ADVISER
Daiwa International Capital Management
(Singapore) Limited
ADMINISTRATOR AND CUSTODIAN
Daiwa Securities Trust Company
TRANSFER AGENT AND REGISTRAR
State Street Bank and Trust Company
LEGAL COUNSEL
Rogers & Wells
INDEPENDENT ACCOUNTANTS
Price Waterhouse LLP
- --------------------------------------------
Notice is hereby given in accordance with section 23(c) of the Investment
Company Act of 1940 that from time to time the Fund may purchase shares of its
common stock in the open market at prevailing market prices.
This report is sent to shareholders of the Fund for their information. It is not
a prospectus, circular or representation intended for use in the purchase or
sale of shares of the Fund or of any securities mentioned in the report.
THE
SINGAPORE
FUND, INC.
[ART]
ANNUAL REPORT
OCTOBER 31, 1996
