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[ ASTRA LOGO ]
ASTRA ALL-AMERICAS GOVERNMENT INCOME TRUST SEMI-ANNUAL REPORT
May 20, 1996
Dear Shareholders:
The Astra All-Americas Government Income Trust's ('The Trust's') total return
for the six months ended March 31, 1996 was 6.47%, 5.91%, and 5.93% for the A, B
and C Class shares, respectively.* As of March 31, 1996, the 30-day SEC yield
for the A, B, and C Class shares equaled 8.48%, 7.69%, and 7.68%, respectively.
The Astra family of funds continues its recovery from a turbulent two year
period which saw its funds impacted by unforeseen events such as rapid changes
in U.S. interest rates, a prolonged recession of the California economy, and the
devaluation of the Mexican Peso. Since late 1995, we have attempted to improve
the performance of all Astra funds by focusing on a core holding of securities
which management believes offer less price volatility while still providing
relatively attractive returns. Over the last six months the All-Americas
Government Income Trust represents the best performing investment choice of the
Astra family of funds. The Trust has provided the most attractive total return
consisting of both asset appreciation and yield. However, it must be recognized
that the Trust also has a greater level of risk and should be for investors with
a long term investment horizon.
The Trust's performance during the past six months was heavily influenced by
real and expected changes in U.S. interest rates as well as changes in each
country's sovereign credit risk. The Trust's fiscal year began in the midst of
the U.S. Federal Reserve's attempt to stimulate economic growth through
decreases in the Fed Funds rate. As a result, both short term and long term
interest rates dropped. However, beginning in late December 1995, long term
interest rates began to rise as investors' perception of future economic growth
increased in conjunction with concerns of rising inflation brought about by an
increase in the price of gold as well as other commodities.
The sovereign credit risks of other Western Hemisphere countries were affected
by different economic and political events during the past six months. In
general, emerging markets responded well over the past six months despite the
recent rise in U.S. interest rates. Although emerging markets still show signs
of volatility, the improving fundamentals and the attractive yields have
continued to support this market.
Argentina
President Menem and Economic Minister Cavallo continued their ongoing feud over
the past six months. To the displeasure of Cavallo, Menem dismissed a number of
members of his cabinet which added some uncertainty to the market place. This
has actually given Cavallo more flexibility in concentrating on fiscal and
monetary policies and the economy is starting to show signs of increased growth.
Despite the tension between President Menem and Cavallo, the Economic Plan
remains in place. Economic growth is expected to be slow the first half of this
year and is projected to pick up in the third quarter due to increased exports
and continued progress with privatization. Inflation appears under control and
does not appear to pose any problems in the near future.
Brazil
The country's recovery has been hampered by numerous reform proposals including
social security, fiscal stabilization, and the administration's need to address
the role of the Central Bank in connection with two troubled banks. President
Cardoso has proven his ability in dealing with Congress and the environment
appears good for fiscal progress.
<PAGE>
Venezuela
The country has responded well to recent progress in its attempt to solidify its
IMF program. President Caldera has addressed the importance of an increase in
gas prices, tax issues, and interest rate policy.
Ecuador
After a very poor year scattered with economic and political woes, the country
has recovered strongly due to market liquidity and good fundamental value
compared to Venezuela. The positive developments surrounding the political
election scheduled for May have added further support to the market.
Mexico
Mexico has posted the strongest recovery compared to Brazil and Argentina over
the past six months. This was spurred by strength in exports, increased interest
in tradable goods, and the country's commitment to fiscal stimulus. These
factors helped growth in the final quarter of 1995. Recently the strength in the
peso and declining Cete rates have solidified the continued progress to an
economic rebound in 1996. Inflation is the key to sustaining Mexico's economic
recovery and will be the deciding factor in a stable peso and declining interest
rates.
Looking forward, improving sovereign credit fundamentals for many Western
Hemisphere countries, relatively stable U.S. interest rates, and an improving or
stable U.S. dollar should all be contributing factors to a generally positive
backdrop for Western Hemisphere Government securities and investment grade
corporate debt instruments of issuers located in the United States, Canada and
Latin America.
Based upon this scenario, we currently plan to continue to structure the Trust
to take advantage of the relatively high yields provided by a number of Latin
America countries which we believe continue on the path of improving economies,
stable governments, and prudent currency exchange programs, particularly Brazil
and Panama. The Trust will also hold a portion of its assets in short term U.S.
government securities for liquidity purposes as well as the potential for
attractive reinvestment as U.S. interest rates may continue to rise over the
next few months.
On behalf of Astra, we want to thank you for giving us the opportunity to help
you achieve your financial goals and objectives.
Sincerely,
Astra Management Corp.
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* Total return for the one year period ending March 31, 1996 was 16.92%, 15.62%,
and 18.45% for the Class A, Class B and Class C shares, respectively. Average
annual total returns for the Class A, Class B and Class C shares were (2.74%),
(1.36%) and (1.15%), respectively, after deduction of applicable sales charges
(Class A shares have an initial sales charge of 3.5% and Class B shares have a
contingent deferred sales charge of 2%) and assuming the reinvestment of all
dividends and capital gains distributions. Inception of operations for Class A
shares was February 28, 1994. Inception of operations for Class B and C shares
was November 1, 1993.
AN INVESTMENT IN SECURITIES ISSUED BY FOREIGN GOVERNMENTS INVOLVES SPECIAL
RISKS AND CONSIDERATIONS NOT TYPICALLY ASSOCIATED WITH U.S. GOVERNMENT
SECURITIES, INCLUDING POLITICAL, ECONOMIC, CURRENCY FLUCTUATIONS, AND OTHER
RISKS. INDIVIDUAL SECURITIES OWNED BY THE TRUST, BUT NOT SHARES OF THE TRUST,
MAY BE GUARANTEED AS TO THE PAYMENT OF PRINCIPAL AND INTEREST BY THE U.S.
GOVERNMENT, ITS AGENCIES, AND INSTRUMENTALITIES. PERFORMANCE DATA REPRESENTS
PAST PERFORMANCE. INVESTMENT RETURNS AND THE PRINCIPAL VALUE OF AN INVESTMENT
IN THE TRUST WILL FLUCTUATE. SHARES, WHEN REDEEMED, MAY BE WORTH MORE OR LESS
THAN THEIR ORIGINAL COST.
Astra All-Americas Government Income Trust is a non-diversified open-end
management investment company which seeks the highest level of current income,
consistent with reasonable investment risk, through investments in a portfolio
of (i) debt securities issued or guaranteed by the Governments of the United
States and other North and South American countries, and (ii) investment in
investment-grade debt instruments (including interest in bank loans) issued by
corporations in those countries.
Securities offered through Astra Fund Distributors Corp.
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2
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PORTFOLIO OF INVESTMENTS AS OF MARCH 31, 1995 (UNAUDITED)
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<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT U.S. $ RATE MATURITY U.S. $ VALUE
- -------------- ---------- ---------- --------------
<S> <C> <C> <C> <C>
U.S. GOVERNMENT SECURITIES--37.4%
$5,940,000 U.S. Treasury Note (Cost $6,321,623)................. 7.7500% 01/31/00 $ 6,278,045
--------------
ARGENTINIAN GOVERNMENT SECURITIES-- 4.3%
1,000,000 Republic of Argentina, Floating Rate Bond (Cost
$764,796).......................................... 6.3125%(1) 03/31/05 721,250
--------------
BRAZILIAN GOVERNMENT SECURITIES-- 24.0%
5,500,000 Republic of Brazil-EI-L, Floating Rate Bond (Cost
$3,629,197)........................................ 6.8125%(1) 04/15/06 4,025,285
--------------
ECUADORIAN GOVERNMENT SECURITIES-- 4.0%
1,250,000 Ecuador Discount, Floating Rate Bond (Cost
$686,171).......................................... 6.0625%(1) 02/28/25 678,125
--------------
MEXICAN GOVERNMENT SECURITIES--4.7%
1,250,000 Republic of Mexico-Par, Fixed Rate Bond (Cost
$855,758).......................................... 6.2500% 12/31/19 798,438
--------------
PANAMANIAN GOVERNMENT SECURITIES-- 16.9%
3,164,000 Republic of Panama, Floating Rate Note (Cost
$2,679,605)........................................ 6.7500%(1) 05/10/02 2,831,780
--------------
VENEZUELAN GOVERNMENT SECURITIES-- 5.4%
1,500,000 Republic of Venezuela DCB, Floating Rate Bond (Cost
$832,249).......................................... 6.5625%(1) 12/18/07 907,965
--------------
TOTAL INVESTMENTS IN SECURITIES
(COST $15,769,399)* (NOTES 2A, 2B AND 3)....................... 96.7% 16,240,888
OTHER ASSETS IN EXCESS OF LIABILITIES............................ 3.3% 551,128
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TOTAL NET ASSETS................................................. 100.0% $ 16,792,016
---------- --------------
---------- --------------
</TABLE>
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(1) Floating rate securities-rates shown are coupon rates as of March 31, 1996.
* Cost for Federal income tax purposes is $15,769,399 and net unrealized
appreciation consists of the following:
Gross Unrealized Appreciation............. $ 623,980
Gross Unrealized Depreciation............. (152,491)
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Net Unrealized Appreciation............... $ 471,489
--------------
--------------
See accompanying notes to financial statements
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3
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STATEMENT OF ASSETS AND LIABILITIES
MARCH 31, 1996 (UNAUDITED)
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<TABLE>
<S> <C>
ASSETS:
Investments at market value (identified cost $15,769,399) (Notes 2A and 3)........................ $ 16,240,888
Cash.............................................................................................. 15,161
Interest receivable............................................................................... 500,557
Prepaid expenses.................................................................................. 27,273
Deferred organization expenses (Note 2F).......................................................... 107,786
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Total Assets................................................................................. 16,891,665
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LIABILITIES:
Payable for fund shares redeemed.................................................................. 16,327
Accrued expenses.................................................................................. 83,322
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Total Liabilities............................................................................ 99,649
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NET ASSETS........................................................................................ $ 16,792,016
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CLASS A SHARES:
Net assets (Applicable to 23,340 shares; unlimited number of shares of beneficial interest
authorized without par value)................................................................... $ 142,032
--------------
--------------
Net asset value and redemption price per share ($142,032/23,340 shares)........................... $ 6.09
--------------
--------------
Offering price per share (100/96.5 of $6.09)*..................................................... $ 6.31
--------------
--------------
CLASS B SHARES:
Net assets (Applicable to 2,318,242 shares; unlimited number of shares of beneficial interest
authorized without par value)................................................................... $ 13,554,015
--------------
--------------
Net asset value, offering and redemption price per share
($13,554,015/2,318,242 shares).................................................................. $ 5.85
--------------
--------------
CLASS C SHARES:
Net assets (Applicable to 531,057 shares; unlimited number of shares of beneficial interest
authorized without par value)................................................................... $ 3,095,969
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--------------
Net asset value, offering and redemption price per share
($3,095,969/531,057 shares)..................................................................... $ 5.83
--------------
--------------
</TABLE>
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* The offering price is reduced on purchases in excess of $100,000
Net assets at March 31, 1996 consisted of:
Paid-in capital..................................... $18,912,800
Accumulated net realized losses on investments...... (2,540,954)
Accumulated net investment deficit.................. (51,319)
Unrealized appreciation of investments.............. 471,489
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$16,792,016
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--------------
See accompanying notes to financial statements
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STATEMENT OF OPERATIONS
FOR THE SIX MONTHS ENDED MARCH 31, 1996 (UNAUDITED)
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<TABLE>
<S> <C>
INVESTMENT INCOME:
INCOME:
Interest......................................................................................... $1,002,707
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EXPENSES:
Distribution expenses (Note 4)................................................................... 87,640
Management fees (Note 5)......................................................................... 57,389
Transfer agent fees.............................................................................. 24,962
Professional fees................................................................................ 21,631
Accounting services.............................................................................. 20,971
Amortization of organization expenses (Note 2F).................................................. 20,895
Registration and filing fees..................................................................... 17,415
Administration fees (Note 5)..................................................................... 8,829
Insurance expense................................................................................ 8,314
Custodian fees................................................................................... 5,829
Shareholder reports.............................................................................. 4,764
Miscellaneous expenses........................................................................... 2,492
Trustees' fees................................................................................... 965
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Total expenses................................................................................ 282,096
Expenses waived (Note 5)......................................................................... (7,585)
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Net expenses.................................................................................. 274,511
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Net investment income......................................................................... 728,196
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REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS AND FOREIGN EXCHANGE TRANSACTIONS:
Net realized gain on investments................................................................. 310,261
Net realized loss on foreign currency transactions............................................... (186,521)
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Net realized gain................................................................................ 123,740
Increase in unrealized appreciation of investments and foreign currencies........................ 181,811
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Net realized and unrealized gain on investments and foreign currency transactions................ 305,551
-------------
Net increase in net assets resulting from operations.......................................... $1,033,747
-------------
-------------
</TABLE>
See accompanying notes to financial statements
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5
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STATEMENT OF CHANGES IN NET ASSETS
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<TABLE>
<S> <C> <C>
SIX MONTHS ENDED
MARCH 31, 1996 YEAR ENDED
(UNAUDITED) SEPTEMBER 30, 1995
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OPERATIONS:
Net investment income.................................................... $ 728,196 $ 1,828,747
Net realized gain (loss) on investments.................................. 310,261 (1,797,637)
Net realized loss on foreign currency transactions....................... (186,521) (3,100,538)
Increase in unrealized appreciation of investments and foreign
currencies............................................................ 181,811 814,459
---------------- ------------------
Net increase (decrease) in net assets resulting from operations.......... 1,033,747 (2,254,969)
Undistributed net investment income included in price of shares sold and
redeemed................................................................. -- (7,053)
DISTRIBUTION TO SHAREHOLDERS:
Distributions from net investment income................................. (779,515) --
Distributions from paid-in capital....................................... -- (1,836,060)
CAPITAL SHARE TRANSACTIONS:
Net increase (decrease) in net assets derived from change in outstanding
shares (a)
Class A shares...................................................... (75,938) (88,839)
Class B shares...................................................... (1,850,958) 1,496,254
Class C shares...................................................... (116,158) (1,081,766)
---------------- ------------------
Total decrease................................................... (1,788,822) (3,772,433)
NET ASSETS:
Beginning of the period.................................................... 18,580,838 22,353,271
---------------- ------------------
End of the period (including accumulated net investment deficit of $51,319
and $0, respectively).................................................... $ 16,792,016 $ 18,580,838
---------------- ------------------
---------------- ------------------
</TABLE>
See accompanying notes to financial statements
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6
<PAGE>
(A) A SUMMARY OF CAPITAL SHARE TRANSACTIONS FOLLOWS:
<TABLE>
<CAPTION>
SIX MONTHS ENDED MARCH 31, 1996 (UNAUDITED)
-------------------------------------------
CLASS A CLASS B CLASS C
----------- -------------- --------------
<S> <C> <C> <C>
SHARES:
Shares sold......................................................... 115 64,356 1,017
Shares issued in payment of distributions
to shareholders................................................... 517 39,914 3,700
----------- -------------- --------------
632 104,270 4,717
Shares redeemed..................................................... (13,301) (420,938) (24,988)
----------- -------------- --------------
Net decrease................................................. (12,669) (316,668) (20,271)
----------- -------------- --------------
----------- -------------- --------------
DOLLARS:
Shares sold......................................................... $ 696 $ 375,674 $ 5,694
Shares issued in payment of distributions
to shareholders................................................... 3,098 232,023 21,447
----------- -------------- --------------
3,794 607,697 27,141
Shares redeemed..................................................... (79,732) (2,458,655) (143,299)
----------- -------------- --------------
Net decrease................................................. ($ 75,938) ($ 1,850,958) ($ 116,158)
----------- -------------- --------------
----------- -------------- --------------
</TABLE>
<TABLE>
<CAPTION>
YEAR ENDED SEPTEMBER 30, 1995
-------------------------------------------
CLASS A CLASS B CLASS C
----------- -------------- --------------
<S> <C> <C> <C>
SHARES:
Shares sold......................................................... 21,670 1,637,700 35,241
Shares issued in payment of distributions
to shareholders................................................... 2,065 93,140 14,576
----------- -------------- --------------
23,735 1,730,840 49,817
Shares redeemed..................................................... (40,478) (1,650,623) (248,484)
----------- -------------- --------------
Net increase (decrease)...................................... (16,743) 80,217 (198,667)
----------- -------------- --------------
----------- -------------- --------------
DOLLARS:
Shares sold......................................................... $ 138,175 $ 10,277,217 $ 232,503
Shares issued in payment of distributions
to shareholders................................................... 12,556 539,356 86,627
----------- -------------- --------------
150,731 10,816,573 319,130
Shares redeemed..................................................... (239,570) (9,320,319) (1,400,896)
----------- -------------- --------------
Net increase (decrease)...................................... ($ 88,839) $ 1,496,254 ($ 1,081,766)
----------- -------------- --------------
----------- -------------- --------------
</TABLE>
See accompanying notes to financial statements
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7
<PAGE>
FINANCIAL HIGHLIGHTS
CLASS A SHARES
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(For a Share Outstanding Throughout Each Period)
<TABLE>
<CAPTION>
SIX MONTHS FEBRUARY 28,
ENDED 1994*
MARCH 31, YEAR ENDED TO
1996 SEPTEMBER 30, SEPTEMBER 30,
(UNAUDITED) 1995 1994
----------- -------------- --------------
<S> <C> <C> <C>
PER SHARE OPERATING PERFORMANCE
Net asset value, beginning of period................... $ 5.99 $ 6.91 $ 7.35
--------------- ------------------ ------------------
Income (loss) from investment operations--
Net investment income................................ 0.27 0.51 0.14
Net realized and unrealized gain (loss) on
investments and foreign
currency transactions............................. 0.11 (0.92) (0.32)
--------------- ------------------ ------------------
Total from investment operations................ 0.38 (0.41) (0.18)
--------------- ------------------ ------------------
Less distributions--
Distributions from net investment income............. (0.28) -- (0.14)
Distributions from paid-in capital................... -- (0.51) (0.12)
--------------- ------------------ ------------------
Total distributions............................. (0.28) (0.51) (0.26)
--------------- ------------------ ------------------
Net asset value, end of period......................... $ 6.09 $ 5.99 $ 6.91
--------------- ------------------ ------------------
--------------- ------------------ ------------------
TOTAL RETURN (A)....................................... 6.47% (5.68%) (2.32%)
RATIOS/SUPPLEMENTAL DATA
Net assets, end of period.............................. $ 142,032 $ 215,633 $ 364,402
Ratio to average net assets
Expenses--
Before expense waiver............................. 2.43%(b) 2.97% 2.86%(b)
After expense waiver.............................. 2.18%(b) 2.50% 1.41%(b)
Net investment income--
Before expense waiver............................. 9.00%(b) 9.07% 9.42%(b)
After expense waiver.............................. 9.25%(b) 9.54% 10.87%(b)
Interest expense....................................... -- 0.87% 1.83%(b)
Portfolio turnover rate................................ 142% 204% 407%
Average daily borrowing outstanding during period...... -- $ 40,036 $ 87,049
Average daily shares outstanding during period......... -- 48,764 35,151
Average daily borrowings outstanding per share during
period............................................... -- $0.82 $2.48
</TABLE>
* Date of initial public offering.
(a) Total return has not been annualized and excludes sales charges.
(b) Annualized.
See accompanying notes to financial statements
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8
<PAGE>
FINANCIAL HIGHLIGHTS
CLASS B SHARES
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(For a Share Outstanding Throughout Each Period)
<TABLE>
<CAPTION>
SIX MONTHS
ENDED NOVEMBER 1, 1993*
MARCH 31, 1996 YEAR ENDED TO
(UNAUDITED) SEPTEMBER 30, 1995 SEPTEMBER 30, 1994
--------------- ------------------ ------------------
<S> <C> <C> <C>
PER SHARE OPERATING PERFORMANCE
Net asset value, beginning of period............... $ 5.77 $ 6.65 $ 7.35
--------------- ------------------ ------------------
Income (loss) from investment operations--
Net investment income............................ 0.24 0.50 0.28
Net realized and unrealized gain (loss) on
investments and foreign currency
transactions.................................. 0.10 (0.88) (0.46)
--------------- ------------------ ------------------
Total from investment operations............ 0.34 (0.38) (0.18)
--------------- ------------------ ------------------
Less distributions--
Distributions from net investment income......... (0.26) (0.28)
---
Distributions from paid-in capital............... -- (0.50) (0.24)
--------------- ------------------ ------------------
Total distributions........................... (0.26) (0.50) (0.52)
--------------- ------------------ ------------------
Net asset value, end of period..................... $ 5.85 $ 5.77 $ 6.65
--------------- ------------------ ------------------
--------------- ------------------ ------------------
TOTAL RETURN (a)................................... 5.91% (5.55%) (2.48%)
RATIOS/SUPPLEMENTAL DATA
Net assets, end of period.......................... $ 13,554,015 $ 15,194,572 $ 17,001,490
Ratio to average net assets
Expenses (excluding interest expense)--
Before expense waiver......................... 3.20%(b) 3.11% 3.61%(b)
After expense waiver.......................... 3.12%(b) 2.62% 1.75%(b)
Net investment income (excluding interest
expense)--
Before expense waiver......................... 8.16%(b) 8.84% 8.14%(b)
After expense waiver.......................... 8.24%(b) 9.33% 10.00%(b)
Interest expense................................... -- 0.78% 1.69%(b)
Portfolio turnover rate............................ 142% 204% 407%
Average daily borrowing outstanding during
period........................................... -- $ 2,111,536 $ 4,404,462
Average daily shares outstanding during period..... -- 3,008,143 1,848,041
Average daily borrowings outstanding per share
during period.................................... -- $0.70 $2.38
</TABLE>
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* Date of initial public offering.
(a) Total return has not been annualized and excludes contingent deferred sales
charges.
(b) Annualized.
See accompanying notes to financial statements
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9
<PAGE>
FINANCIAL HIGHLIGHTS
CLASS C SHARES
- ------------------------------
(For a Share Outstanding Throughout Each Period)
<TABLE>
<CAPTION>
SIX MONTHS
ENDED NOVEMBER 1, 1993*
MARCH 31, 1996 YEAR ENDED TO
(UNAUDITED) SEPTEMBER 30, 1995 SEPTEMBER 30, 1994
--------------- ------------------ ------------------
<S> <C> <C> <C>
PER SHARE OPERATING PERFORMANCE
Net asset value, beginning of period............... $ 5.75 $ 6.65 $ 7.35
--------------- ------------------ ------------------
Income (loss) from investment operations--
Net investment income............................ 0.24 0.49 0.28
Net realized and unrealized gain (loss) on
investments and foreign currency
transactions.................................. 0.10 (0.89) (0.46)
--------------- ------------------ ------------------
Total from investment operations............ 0.34 (0.40) (0.18)
--------------- ------------------ ------------------
Less distributions--
Distributions from net investment income......... (0.26) -- (0.28)
Distributions from paid-in capital............... -- (0.50) (0.24)
--------------- ------------------ ------------------
Total distributions......................... (0.26) (0.50) (0.52)
--------------- ------------------ ------------------
Net asset value, end of period..................... $ 5.83 $ 5.75 $ 6.65
--------------- ------------------ ------------------
--------------- ------------------ ------------------
TOTAL RETURN (a)................................... 5.93% (5.86%) (2.48%)
RATIOS/SUPPLEMENTAL DATA
Net assets, end of period.......................... $ 3,095,969 $ 3,170,663 $ 4,987,379
Ratio to average net assets
Expenses (excluding interest expense)--
Before expense waiver......................... 3.21%(b) 3.10% 3.61%(b)
After expense waiver.......................... 3.13%(b) 2.62% 1.82%(b)
Net investment income (excluding interest
expense)--
Before expense waiver......................... 8.13%(b) 8.91% 8.32%(b)
After expense waiver.......................... 8.21%(b) 9.40% 10.11%(b)
Interest expense................................... -- 0.83% 1.74%(b)
Portfolio turnover rate............................ 142% 204% 407%
Average daily borrowing outstanding during
period........................................... -- $ 481,332 $ 1,319,294
Average daily shares outstanding during period..... -- 637,550 545,628
Average daily borrowings outstanding per share
during period.................................... -- $0.75 $2.42
</TABLE>
- ------------------
* Date of initial public offering.
(a) Total return has not been annualized and excludes contingent deferred sales
charges.
(b) Annualized.
See accompanying notes to financial statements
- ------
10
<PAGE>
NOTES TO FINANCIAL STATEMENTS
MARCH 31, 1996
- ------------------------------
NOTE 1--ORGANIZATION
Astra Institutional Trust ('the Company'), is registered under the Investment
Company Act of 1940, as amended (the '1940 Act'), as an open-end management
investment company and is authorized to issue shares in separate series. The
Company currently offers three classes of shares (the 'Class A Shares', the
'Class B Shares', and the 'Class C Shares') in one non-diversified series, Astra
All-Americas Government Income Trust (the 'Trust'). The Class A Shares are sold
with a front-end sales charge. The Class B and Class C Shares are sold at net
asset value and may be subject to a contingent deferred sales charge upon
redemption. All classes have identical rights with respect to voting (exclusive
of each Classes' distribution arrangement), liquidation and distributions.
The Trust commenced operations on November 1, 1993, the date on which it began
investing in accordance with its registration statement. At such time only Class
B Shares and Class C Shares were offered for sale. On February 28, 1994, Class A
Shares were offered for sale.
NOTE 2--SIGNIFICANT ACCOUNTING POLICIES
The Following is a summary of the significant accounting policies followed by
the Trust in the preparation of its financial statements. These policies are in
accordance with generally accepted accounting principles.
A. SECURITY VALUATION. The securities held in the Trust's portfolio are valued
by using market quotations, or independent pricing services which use
prices provided by market-makers or estimates of market values obtained
from yield data relating to instruments or securities with similar
characteristics. Portfolio securities of the Trust which are traded both on
an exchange and in the over-the-counter market are valued according to the
broadest and most representative market. When portfolio securities are
traded, the valuation will be the last reported sales price on the day of
valuation. If there is no such reported sale or the valuation is based on
the over-the-counter market, the securities are valued at the mean between
the last available bid and offered prices. Securities for which reliable
quotations or pricing services are not readily available and all other
assets are valued at their respective fair value as determined in good
faith by, or under procedures established by, the Trustees of the Company,
which procedures may include the delegation of certain responsibilities
regarding valuation to the officers of the Company. The officers of the
Company report, as necessary, to the Trustees of the Company regarding
portfolio valuation determination. Foreign securities are valued on the
basis of quotations from the primary market in which they are traded.
B. CURRENCY TRANSLATION. The market values of all assets and liabilities
denominated in foreign currencies are recorded in the financial statements
after translation to the U.S. dollar based upon the mean between the bid
and offered quotations of the currencies against U.S. dollars on the date
of valuation. The cost basis of such assets and liabilities is determined
based upon historical exchange rates. Income and expenses are translated at
average exchange rates in effect as accrued or incurred.
C. FORWARD CURRENCY CONTRACTS. The Trust may enter into forward purchases or
sales of foreign currencies to hedge certain foreign currency denominated
assets and liabilities against declines in market value relative to the
U.S. dollar. Forward currency contracts are marked-to-market daily and the
change in market value is recorded by
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11
<PAGE>
the Trust as an unrealized gain or loss. When the forward currency contract
is closed, the Trust records a realized gain or loss equal to the
difference between the value of the forward currency contract at the time
it was opened and value at the time it was closed.
Investments in forward currency contracts may expose the Trust to risks
resulting from unanticipated movements in foreign currency exchange rates
or failure of the counterparty to the agreement to perform in accordance
with the terms of the contract.
D. FEDERAL INCOME TAXES. The Trust intends to comply with the requirements of
the Internal Revenue Code applicable to regulated investment companies and
to distribute all of its taxable income to its shareholders. Therefore, no
Federal income tax provision is required.
E. SECURITY TRANSACTIONS, INCOME, DIVIDENDS AND DISTRIBUTIONS. As is common in
the industry, security transactions are recorded on the trade date.
Interest income is accrued as earned. Dividends and distributions to
shareholders are recorded on the ex-dividend date. The Trust intends to
declare and pay monthly dividends.
The character of distributions paid to shareholders is determined by
reference to income as determined for income tax purposes (after giving
appropriate effect to temporary differences between the financial reporting
and tax basis of assets and liabilities) rather than income as determined
for financial reporting purposes.
Distributions paid to shareholders during the six months ended March 31,
1996 exceeded net investment income as determined for income tax purposes
as a result of the characterization of realized foreign currency losses and
certain non-deductible operating expenses.
F. DEFERRED ORGANIZATION EXPENSES. All of the expenses incurred by the Company
in connection with the organization and registration of the Trust's shares
will be borne by the Trust and are being amortized to expense on a
straight-line basis over a period of five years.
NOTE 3--INVESTMENTS
For the six months ended March 31, 1996, the cost of purchases and the proceeds
from sales of securities, excluding short-term notes, were $24,154,460 and
$24,485,079, respectively.
At September 30, 1995 the Trust had a capital loss carryforward for Federal
income tax purposes of $2,664,694 of which $853,977 expires on September 30,
2002 and $1,810,717 expires on September 30, 2003.
NOTE 4--DISTRIBUTION PLANS
CLASS A SHARES. The Trust has adopted a Plan pursuant to Rule 12b-1 under the
1940 Act the ('Class A Plan'), whereby it may pay up to a maximum annual rate of
.25% of the average net assets of the Class A Shares to Astra Fund Distributors
Corp. ('Distributors'), its principal underwriter, for expenses incurred in the
distribution of the Trust's Class A Shares. Pursuant to the Plan, Distributors
is entitled to reimbursement for its actual expenses incurred in the
distribution and promotion of the Trust's Class A Shares, including the printing
of prospectuses and reports used for sales purposes, expenses for preparation
and printing of sales literature and other related expenses, including any
distribution or service fees paid to securities dealers or institutions who have
executed a distribution or service agreement with Distributors. During the six
months ended March 31, 1996, Distributors was reimbursed $217 for distribution
costs incurred under the Class A Plan.
The plan permits Distributors to carry forward for a maximum of three years
(without carrying charges) distribution expenses from prior years covered by the
Plan for which Distributors has not received reimbursement. At March 31, 1996,
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Distributors had incurred $17,481 of distribution expenses in excess of amounts
currently reimbursable by the Trust pursuant to the Class A Plan. In the event
that the Plan is terminated in accordance with its terms, the obligation of the
Trust to make payments to Distributors pursuant to the Class A Plan will cease
and the Trust will not be required to make any payments for expenses incurred
after termination.
CLASS B AND CLASS C SHARES. The Trust has adopted Plans pursuant to Rule 12b-1
under the 1940 Act (the 'Class B Plan' and the 'Class C Plan'), whereby it will
provide daily compensation to Distributors in the form of sales commissions
equal to 5% of the amount received by the Trust for each Class B Share sold and
4% of the amount received for each Class C Share sold (excluding reinvestment of
dividends and distributions) plus an interest fee calculated by applying the
rate of 1% over prime rate to the outstanding balance of Uncovered Distribution
Charges. Daily compensation payments will be made monthly and are limited to an
annual rate of .75% of the average net assets of the Class B and Class C Shares,
respectively. During the six months ended March 31, 1996, daily compensation
paid to Distributors was $53,842 and $11,725 for the Class B and Class C Shares,
respectively.
Uncovered Distribution Charges consist of cumulative sales commissions, interest
fees and Exchange-In Charges, reduced by cumulative daily compensation,
contingent deferred sales charges (See Note 7) and Exchange-Out Charges.
Exchange-In Charges and Exchange-Out Charges represent a pro-rata portion of the
Uncovered Distribution Charges existing on the date of eligible shareholder
exchanges in or out of the Trust. At March 31, 1996, such Uncovered Distribution
Charges amounted to $142,427 and $167,127 for the Class B and Class C Plans,
respectively.
The Class B and Class C Plans also provide for the payment to Distributors of a
trail or maintenance fee, accrued daily and paid monthly, in an amount equal to
an annual rate of .25% of average daily net assets of the Class B and Class C
Shares, respectively. During the six months ended March 31, 1996, maintenance
fees paid to Distributors amounted to $17,947 and $3,909 for the Class B and
Class C Plans, respectively.
NOTE 5--INVESTMENT MANAGEMENT FEES AND OTHER TRANSACTIONS WITH AFFILIATES
Astra Management Corporation (the 'Manager') provides the Trust with investment
management services pursuant to an Investment Management Agreement. The Manager
furnishes investment management services, including furnishing requisite office
space and personnel, and in general supervising and managing the Trust's
portfolio subject to the ultimate supervision and direction of the Company's
Trustees. As compensation for its services, the Manager is paid a monthly fee
which is equal to the annual rate of .65% of the Trust's average daily gross
assets. Gross assets for purposes of calculating such fee consist of average
daily net assets increased by average daily debt outstanding.
Pursuant to the Investment Management Agreement the Manager will reduce its
aggregate fees for any fiscal year, or reimburse the Trust, to the extent
required so that the Trust's expenses do not exceed the expense limitations
applicable to the Trust under the securities laws or regulations of those states
or jurisdictions in which the Trust's shares are registered or qualified for
sale. Currently, the most restrictive of such limitations would require the
Manager to reimburse the Trust to the extent required so that the Trust's
expenses, as described below, for any fiscal year do not exceed 2.50% of the
first $30 million of the Trust's average net assets, 2.00% of the next $70
million of the Trust's average net assets and 1.50% of the Trust's remaining
average net assets. The amount of any such required reimbursement, however, is
limited to the management fees paid by the Trust to the manager. Expenses for
purposes of these expense limitations include the management fee, but exclude
distribution expenses, brokerage commissions and fees, taxes, interest and
extraordinary expenses such as litigation, paid or incurred by the Trust.
The Manager has voluntarily agreed to further limit the Trust's aggregate
operating expenses
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during the six months ended March 31, 1996, resulting in a waiver of expenses
in the amount of $7,585.
Atlas Holdings Group, Inc., (the 'Administrator'), provides the Trust with
administrative services pursuant to an Administration Agreement. These
administrative services include supervising the preparation of all documents
required for compliance by the Trust with applicable laws and regulations,
supervising and maintenance of books and records, and other general and
administrative responsibilities. As compensation for its services, the
Administrator is paid a monthly fee which is equal to the annual rate of .10% of
the Trust's average daily net assets.
Certain officers and trustees of the Company are also officers and/or directors
of the Manager, Distributors and Administrator which are affiliated companies.
NOTE 6--BORROWINGS
BANK LOAN. The Trust has entered into a Loan and Pledge Agreement (the
'Agreement') with a bank. Pursuant to the Agreement, the Trust may borrow an
amount not to exceed the lesser of $50 million or the maximum borrowing
permitted under the 1940 Act. All borrowings under the Agreement will be
collateralized by securities pledged to the bank. The bank will lend up to a
specified percentage of the market value of the pledged securities. The
percentage varies depending upon the type of pledged securities but currently
will not exceed 93%. All borrowings are due upon demand and bear interest at
LIBOR plus 1% payable monthly. During the six months ended March 31, 1996, the
Trust had no balances outstanding pursuant to this Agreement.
REVERSE REPURCHASE AGREEMENTS. The Trust has entered into a Master Repurchase
Agreement (the 'Agreement') with a bank. The Agreement provides that the Trust
may periodically enter into reverse repurchase agreements. A reverse repurchase
agreement involves the sale and delivery of securities by the Trust to the bank
coupled with an agreement to buy the securities back at a later date at an
agreed price. The Trust pays the bank a fixed rate of interest for the use of
the funds for the term of the reverse repurchase agreement. During the six
months ended March 31, 1996, the Trust did not enter into any Reverse Repurchase
Agreements.
NOTE 7--CONTINGENT DEFERRED SALES CHARGES
Class B and Class C Shares redeemed within certain periods after purchase will
be subject to a contingent deferred sales charge ('CDSC'). Redemption proceeds
will be applied first against shares not subject to the CDSC for purposes of
calculating the applicable CDSC. The CDSC will not be imposed on shares acquired
through the reinvestment of dividends and distributions or on the appreciation
in the value of the shares acquired. The CDSC is paid by the redeeming
shareholder to Distributors and is imposed at the following rates:
YEAR OF REDEMPTION CLASS B CLASS C
AFTER PURCHASING CDSC CDSC
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First............................. 4.00% 1.50%
Second............................ 3.00% 0.00%
Third............................. 2.00% 0.00%
Fourth............................ 1.00% 0.00%
Fifth and thereafter.............. 0.00% 0.00%
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Astra Group
Family of Funds
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Adjustable-Income Funds
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Astra Adjustable U.S. Government Securities Trust I
Astra Adjustable U.S. Government Securities Trust I-A
Astra Adjustable U.S. Government Securities Trust II
Astra Adjustable U.S. Government Securities Trust IV
Astra Adjustable Rate Securities Trust I
Astra Adjustable Rate Securities Trust I-A
Astra Adjustable Rate Securities Trust II
Astra Adjustable Rate Securities Trust IV
Fixed-Income Funds
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Astra All-Americans Government Income Trust
Astra Short-Term Multi-Market Income Fund
Astra Short-Term Multi-Market Income Fund II
Prospectuses containing more complete information about the Funds, including
charges and expenses, may be obtained from Astra Fund Distributors Corp.
Read the Prospectus carefully before you invest or send money.
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<PAGE>
ASTRA
750 B Street
Suite 2350
San Diego, CA 92101
ASTRA ALL-AMERICAS GOVERNMENT
INCOME TRUST
Investment Manager
Astra Management Corp.
750 B Street
Suite 2350
San Diego, CA 92101
1-619-238-7100
Principal Underwriter
Astra Fund Distributors Corp.
750 B Street
Suite 2350
San Diego, CA 92101
1-800-219-1080
Shareholder Servicing Agent
DST Systems, Inc.
P.O. Box 419174
Kansas City, Missouri 64141
1-800-441-7267
Transfer Agent
Investors Fiduciary Trust Company
c/o DST Systems, Inc.
P.O. Box 419174
Kansas City, Missouri 64141
This report is submitted for the general information of the shareholders of the
Trust. It is not authorized for distribution to prospective investors in the
Trust unless preceded or accompanied by an effective prospectus which includes
details regarding the Trust's objectives, policies, sales commissions and other
information.
AAG 0596 2 AST 604414
[ASTRA LOGO]
ASTRA
ALL-AMERICAS
GOVERNMENT
INCOME TRUST
SEMI-ANNUAL REPORT
MARCH 31, 1996
GRAPHIC - In the printed document there appears a photograph of 4 flags:
United States of America, Mexico, Brazil and Argentina.
