<PAGE>
CIGNA INTERNATIONAL STOCK FUND
SEMI-ANNUAL REPORT TO SHAREHOLDERS
FOR THE SIX MONTHS ENDED JUNE 30, 1997
(UNAUDITED)
[HORIZONTAL GLOBE GRAPHIC APPEARS HERE]
<PAGE>
CIGNA INTERNATIONAL STOCK FUND
INVESTMENTS IN SECURITIES
JUNE 30, 1997 (UNAUDITED)
<TABLE>
<CAPTION>
NUMBER MARKET
OF SHARES VALUE
- ------------------------------------------------------------------------------------------------------------------
<S> <C> <C>
EQUITIES AND EQUIVALENTS - 97.4%
ARGENTINA - 0.7%
YPF Sociedad Anomima ADR** (Oil & Gas) 2,000 $ 61,500
------------------
AUSTRALIA - 6.7%
Ausmelt Ltd. (Metal)* 15,000 22,672
Meekatharra Minerals (Mining)* 150,000 36,276
News Corporation (Media) 20,000 78,900
Rio Tinto Ltd. (Metal) 15,000 255,973
Star Mining Corp. (Mining)* 370,000 50,333
Westpac Banking Corp. (Banking) Warrants* 30,000 149,638
------------------
593,792
------------------
CHILE - 0.4%
Compania de Telecomucicacion ADR** (Telecommunication) 1,062 35,046
------------------
DENMARK - 2.1%
ALM Brand (Insurance) 1,500 47,440
BG Bank (Banking) 1,250 69,090
Tele Danmark AS (Telecommunication) 1,250 64,948
------------------
181,478
------------------
FINLAND - 0.6%
Nokia AB (Telecommunications) 700 52,290
------------------
FRANCE - 4.8%
AXA (Insurance) 742 46,149
Banque National de Paris (Banking) 2,500 103,034
Carrefour (Food Retailing) 85 61,732
</TABLE>
The Notes to Financial Statements are an integral part of these statements.
<PAGE>
CIGNA INTERNATIONAL STOCK FUND
INVESTMENTS IN SECURITIES (Continued)
JUNE 30, 1997 (UNAUDITED)
<TABLE>
<CAPTION>
NUMBER MARKET
OF SHARES VALUE
- ------------------------------------------------------------------------------------------------------------------
<S> <C> <C>
ELF Aquitaine (Oil) 615 $ 66,348
Etam Development (Merchandising/Stores) 880 61,694
Societe Generale de Banque (Banking) 354 39,516
Suez Lyonn Eaux (Multi-Industry) 410 41,302
------------------
419,775
------------------
GERMANY - 6.6%
Allianz AG Holdings (Insurance) 25 52,319
BASF AG (Chemicals) 1,125 41,572
Bayer AG (Chemicals) 800 30,741
Commerzbank AG (Banking) 1,300 36,821
Daimler-Benz AG (Multi - Industry)* 550 44,622
Deutsche Bank AG (Banking) 1,095 63,976
Deutsche Telekom AG (Telecommunication) 2,907 70,004
Dresdner Bank AG (Banking) 1,500 51,861
Hoechst AG (Chemicals) 1,025 43,337
Mannesman AG (Machinery/General Industries) 150 66,825
Siemens AG (Electricals & Electronics) 765 45,419
Veba AG (Diversified) 710 39,895
------------------
587,392
------------------
HONG KONG - 9.4%
Beijing Enterprises (Real Estate) 15,000 94,485
Beijing North Star (Real Estate) 160,000 77,446
Cheung Kong Holdings (Real Estate) 15,000 148,116
Cheung Kong Infras (Building, Heavy Construction) 32,000 92,729
China Everbright (Metal) 30,000 85,932
</TABLE>
The Notes to Financial Statements are an integral part of these statements.
<PAGE>
CIGNA INTERNATIONAL STOCK FUND
INVESTMENTS IN SECURITIES (Continued)
JUNE 30, 1997 (UNAUDITED)
<TABLE>
<CAPTION>
NUMBER MARKET
OF SHARES VALUE
- ------------------------------------------------------------------------------------------------------------------
<S> <C> <C>
China Res Beijing Land (Real Estate) 150,000 $ 111,329
HSBC Holdings (Banking) 2,942 88,481
Innovative International Holdings (Industrial Components) 100,000 52,276
Shanghai Industrial Holdings (Tobacco) 6,000 37,329
Tem Fat Hing Fung Holdings (Retail) 120,000 44,919
------------------
833,042
------------------
ITALY - 1.8%
Eni SPA (Oil) 7,750 43,890
Pirelli SPA (Tires) 18,000 44,588
San Paolo (Banking) 2,650 19,319
Telecom Italia (Telecommunication) 18,125 54,282
------------------
162,079
------------------
JAPAN - 27.9%
Bank of Tokyo Mitsubishi (Banking)* 5,000 100,332
Canon Aptex Inc. (Machinery) 800 14,308
Canon, Inc. (Precision Instrument) 5,000 136,102
Fuji Machine Mfg (Machinery) 5,000 181,033
Fujitsu Ltd. (Electronics) 8,000 110,975
Hitachi (Electronics) 7,000 78,171
Ibiden (Electrical Machinery) 7,000 100,768
Industrial Bank Japan (Banking) 240 3,727
Minebea Co. (Machinery) 5,000 53,219
Miroku Jyoho Services, Ltd. (Accounting Soft Services)* 800 13,959
Mitsubishi Heavy Industries (Ship Building and Repair) 10,000 76,688
Mitsui Fudosan Co. (Real Estate) 8,000 110,277
NEC Corp. (Electrical Machinery) 5,000 69,796
Nippon Telephone & Telegraph (Telecommunication) 10 95,969
</TABLE>
The Notes to Financial Statements are an integral part of these statements.
<PAGE>
CIGNA INTERNATIONAL STOCK FUND
INVESTMENTS IN SECURITIES (Continued)
JUNE 30, 1997 (UNAUDITED)
<TABLE>
<CAPTION>
NUMBER MARKET
OF SHARES VALUE
- ------------------------------------------------------------------------------------------------------------------
<S> <C> <C>
Nippon Trust Bank (Banking) 30,000 $ 101,815
NTT Data Communications Systems (Data Processing) 1 38,649
Ohbayashi Corp. (Construction & Housing) 20,000 133,834
Orix Corp. (Financial Services) 1,500 111,106
Sanwa Bank Ltd. (Banking) 5,000 74,158
Seven-Eleven Japan (Merchandising) 1,000 75,554
Shin-Etsu Chem Co. (Chemicals) 5,000 132,615
Sony Corp. (Electronics) 2,000 174,315
Sumitomo Realty & Development (Real Estate) 10,000 88,117
Sumitomo Sitix (Non-Ferrous Metals) 3,000 64,125
TDK Corp. (Electronics Components) 1,000 73,373
Tokyo Electronics (Electronics) 2,000 95,620
Tokyo Seimitsu Co. (Machinery & Engineering) 5,000 97,714
Yamato Transport (Transportation) 5,000 62,380
------------------
2,468,699
------------------
MALAYSIA - 1.7%
Konsortium Perkapalan (Transportation/Marine)* 10,000 59,033
Malaysian Resources Corp. (Real Estate) 15,000 41,303
Renong Berhad (Multi - Industry) * 40,000 52,298
------------------
152,634
------------------
MEXICO - 1.8%
Cemex SA (Cement) 6,750 29,387
Desc. Formento Industries B (Miscellaneous) 3,096 23,062
Desc. Formento Industries C (Miscellaneous) 10,000 74,489
Telefonos de Mexico SA ADR** (Telecommunications) 750 35,813
------------------
162,751
------------------
</TABLE>
The Notes to Financial Statements are an integral part of these statements.
<PAGE>
CIGNA INTERNATIONAL STOCK FUND
INVESTMENTS IN SECURITIES (Continued)
JUNE 30, 1997 (UNAUDITED)
<TABLE>
<CAPTION>
NUMBER MARKET
OF SHARES VALUE
- ------------------------------------------------------------------------------------------------------------------
<S> <C> <C>
NETHERLANDS - 5.1%
Baan Company NV (Electronic Components) 795 $ 53,867
Ing Groep NV (Insurance & Finance) 964 44,445
Kon PTT Nederland (Telecommunications) 1,400 54,919
Philips Electronic (Electronics) 1,050 75,210
Randstad Holdings (Business & Public Services) 420 44,292
Royal Dutch Petroleum (Energy) 2,600 136,431
Unilever NV (Food & Beverage) 180 37,891
------------------
447,055
------------------
NEW ZEALAND - 4.0%
Air New Zealand (Airline) 15,000 45,849
Carter Holt Harvey Ltd. (Forest Products) 60,379 156,257
Fernz Corp. (Forest Products) 10,000 33,963
Fletcher Challenge Forests (Forest Products) 50,000 72,680
Shortland Properties (Real Estate) 60,000 40,755
------------------
349,504
------------------
NORWAY - 0.6%
Norsk Hydro (Energy) 1,000 54,440
------------------
SINGAPORE - 2.5%
City Development Ltd. (Real Estate) 5,000 48,961
Electronic Resources (Electronics) 30,000 47,213
Electronic Resources (Electronics) Warrants* 10,309 10,311
Overseas-Chinese Banking Corp., Ltd. (Banking) 2,760 28,571
Sing Techs Automotive (Automobile) 24,000 60,097
Wing Tai Holdings (Real Estate) 10,000 28,817
------------------
223,970
------------------
</TABLE>
The Notes to Financial Statements are an integral part of these statements.
<PAGE>
CIGNA INTERNATIONAL STOCK FUND
INVESTMENTS IN SECURITIES (Continued)
JUNE 30, 1997 (UNAUDITED)
<TABLE>
<CAPTION>
NUMBER MARKET
OF SHARES VALUE
- ------------------------------------------------------------------------------------------------------------------
<S> <C> <C>
SOUTH AFRICA - 0.9%
Gold Fields of South Africa (Mining) 1,700 $ 40,093
Western Areas Gold Mining (Mining) 6,022 40,483
------------------
80,576
------------------
SPAIN - 0.7%
Banco Bilbao Vizcaya Esp (Banking) 250 20,309
Telefonica Esp (Telecommunication) 1,400 40,475
------------------
60,784
------------------
SWEDEN - 0.9%
Assi Doman (Forest Products) 1,500 42,660
Sparbanken Sverige (Banking) 1,000 22,235
Swedish Match (Automobiles) 3,600 12,100
------------------
76,995
------------------
SWITZERLAND - 5.0%
Ares-Serono SA (Health & Personal Care) 38 55,048
Credit Suisse Group (Banking) 350 44,949
Nestle SA (Food & Household Products) 35 46,171
Novartis AG (Health & Personal Care) 65 103,911
Roche Holdings AG (Health & Personal Care) 10 90,445
Schweiz Bankverein (Banking) 200 53,493
Sulzer AG (Machinery & Engineering) 55 47,089
------------------
441,106
------------------
</TABLE>
The Notes to Financial Statements are an integral part of these statements.
<PAGE>
CIGNA INTERNATIONAL STOCK FUND
INVESTMENTS IN SECURITIES (Continued)
JUNE 30, 1997 (UNAUDITED)
<TABLE>
<CAPTION>
NUMBER MARKET
OF SHARES VALUE
- ------------------------------------------------------------------------------------------------------------------
<S> <C> <C>
THAILAND - 0.3%
Industrial Finance Corp. (Financial Services) 20,000 $ 25,478
------------------
UNITED KINGDOM - 12.8%
Associated British Ports Holdings PLC (Transportation) 4,000 17,086
BAT Industries PLC (Tobacco) 8,250 73,846
BTR PLC (Diversified) Warrants* 229 8
British Telecommunications PLC (Telecommunications) 5,500 40,850
Burton Group (Merchandising) 27,000 52,832
Cable & Wireless PLC (Telecommunication) 25,000 131,975
Cadbury Schweppes (Bevarages & Tobacco) 10,000 89,260
Energy Group PLC (Multi Industry) 2,870 30,636
FTSE Index Put Option (Miscellaneous) 7 21,041
Glaxo Wellcome (Pharmaceutical) 5,000 103,457
Grand Metropolitan (Diversified) 8,000 77,003
Land Securities (Real Estate) 10,000 141,550
Lasmo PLC (Energy) 25,000 109,077
Prudential PLC (Life Assurance) 16,539 161,652
Reuters Holdings (Media) 7,300 76,952
------------------
1,127,225
------------------
VENEZUELA - 0.1%
Corimon S.A.C.A., ADR** (Paints) 1,000 1,125
------------------
</TABLE>
The Notes to Financial Statements are an integral part of these statements.
<PAGE>
CIGNA INTERNATIONAL STOCK FUND
INVESTMENTS IN SECURITIES (Continued)
JUNE 30, 1997 (UNAUDITED)
<TABLE>
<CAPTION>
NUMBER MARKET
OF SHARES VALUE
- ------------------------------------------------------------------------------------------------------------------
<S> <C>
TOTAL INVESTMENTS IN SECURITIES - 97.4%
(Total Cost - $6,929,007) $ 8,598,736
Cash and Other Assets Less Liabilities - 2.6% 231,989
------------------
NET ASSETS - 100.0%
(equivalent to $12.57 per share based on 702,608
shares outstanding) $ 8,830,725
==================
</TABLE>
* Non-income Producing Securities.
** An American Depository Receipt (ADR) is a certificate issued by a U.S.
bank representing the right to receive securities of the foreign issuer
described. The values of ADRs are significantly influenced by trading on
exchanges not located in the United States or Canada.
The Notes to Financial Statements are an integral part of these statements.
<PAGE>
CIGNA INTERNATIONAL STOCK FUND
STATEMENT OF ASSETS AND LIABILITIES
JUNE 30, 1997 (UNAUDITED)
<TABLE>
<S> <C>
ASSETS:
Investments in securities at value (Cost - $6,929,007) $ 8,598,736
Foreign currency (Cost - $142,700) 141,998
Cash on deposit with custodian 528
Dividends receivable 34,754
Receivable for investments sold 161,048
Receivable from advisor 7,939
Investment for deferred compensation plan (Cost - $15,239) 17,949
Other assets 9,312
------------------
TOTAL ASSETS 8,972,264
------------------
LIABILITIES:
Payable for investments purchased 85,924
Payable for deferred compensation plan 17,949
Other accrued expenses 37,666
------------------
TOTAL LIABILITIES 141,539
------------------
NET ASSETS (applicable to 702,608 shares of beneficial interest with par value
of $.001 per share issued and outstanding; unlimited number of shares
authorized) $ 8,830,725
==================
Shares outstanding 702,608
==================
Net asset value, offering price and redemption price per share $ 12.57
==================
COMPONENTS OF NET ASSETS:
Capital paid in $ 7,424,892
Distributions in excess of net investment income (8,487)
Net unrealized appreciation of investments, deferred
compensation plan, foreign currencies and other net assets. 1,680,001
Accumulated net realized loss on investments (265,681)
------------------
NET ASSETS $ 8,830,725
==================
</TABLE>
The Notes to Financial Statements are an integral part of these statements.
<PAGE>
CIGNA INTERNATIONAL STOCK FUND
STATEMENT OF OPERATIONS
FOR THE SIX MONTHS ENDED JUNE 30, 1997 (UNAUDITED)
<TABLE>
<S> <C>
INVESTMENT INCOME
INCOME:
Dividends (net of foreign taxes withheld of $12,793) $ 88,106
Interest
-
------------------
88,106
EXPENSES:
Custodian fees and expenses 34,301
Investment advisory fees 32,049
Auditing and legal fees 12,604
Administrative services 10,175
Other 9,019
------------------
Total expenses 98,148
Less expenses waived by investment advisor (53,181)
------------------
Net expenses 44,967
------------------
NET INVESTMENT INCOME 43,139
------------------
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS,
FOREIGN CURRENCIES AND OTHER NET ASSETS:
Net realized loss from securities transactions (279,561)
Net realized loss on foreign currencies and forward
foreign exchange contracts (39,913)
Net unrealized appreciation of investments 1,026,575
Net unrealized appreciation of foreign currencies and
other net assets 11,038
------------------
NET REALIZED AND UNREALIZED GAIN ON INVESTMENTS,
FOREIGN CURRENCIES AND OTHER NET ASSETS 718,139
------------------
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS $ 761,278
==================
</TABLE>
The Notes to Financial Statements are an integral part of these statements.
<PAGE>
CIGNA INTERNATIONAL STOCK FUND
STATEMENT OF CHANGES IN NET ASSETS (UNAUDITED)
<TABLE>
<CAPTION>
YEAR
SIX MONTHS ENDED
ENDED DECEMBER 31,
JUNE 30, 1997 1996
-----------------------------------------
<S> <C> <C>
OPERATIONS:
Net investment income $ 43,139 $ 49,528
Net realized gain (loss) from securities transactions
and foreign currency transactions (319,474) 361,511
Net unrealized appreciation of investments,
deferred compensation plan, foreign currencies
and other net assets 1,037,613 77,333
------------------ ------------------
Net increase in net assets from operations 761,278 488,372
------------------ ------------------
DISTRIBUTIONS TO SHAREHOLDERS:
From net investment income - (54,926)
In excess of net investment income - (84,848)
From net realized capital gains - (195,624)
------------------ ------------------
Total distributions to shareholders - (335,398)
------------------ ------------------
CAPITAL SHARE TRANSACTIONS:
Net asset value of shares issued to shareholders
in reinvestment of dividends and distributions - 335,398
------------------ ------------------
Net increase from capital share transactions - 335,398
------------------ ------------------
Net increase in net assets 761,278 488,372
NET ASSETS:
Beginning of period 8,069,447 7,581,075
------------------ ------------------
End of period (including overdistributed net investment
income of $8,487 and $52,695 respectively) $ 8,830,725 $ 8,069,447
================== ==================
</TABLE>
The Notes to Financial Statements are an integral part of these statements.
<PAGE>
CIGNA INTERNATIONAL STOCK FUND Notes to Financial Statements (Unaudited)
1. SIGNIFICANT ACCOUNTING POLICIES. CIGNA International Stock Fund (the "Fund")
was organized as the sole series of CIGNA Institutional Funds Group, a
Massachusetts business trust (the "Trust") on August 10, 1992 and is registered
under the Investment Company Act of 1940, as amended, as a diversified, open-end
management investment company. The Fund's objective is to provide long-term
growth of capital by investing primarily in common stocks, preferred stocks and
convertible debt of companies based outside the United States. The preparation
of financial statements in accordance with generally accepted accounting
principles requires management to make estimates and assumptions that affect the
reported amounts and disclosures in the financial statements. Actual results
could differ from those estimates. The following is a summary of significant
accounting policies consistently followed by the Fund in the preparation of its
financial statements.
A. SECURITY VALUATION - Equity securities, including warrants, that are listed
on a United States or foreign securities exchange are valued at the last sale
price or, if there is no such price available, at the last bid price. Portfolio
securities that are traded on foreign securities exchanges are generally valued
at the preceding closing prices of such securities on their respective
exchanges. A security that is listed or traded on more than one exchange is
valued on the exchange determined to be the primary market for such security by
the Board of Trustees or its delegates. Other equity securities traded in the
over-the-counter market, including listed securities whose primary markets are
believed to be over-the-counter, are valued at the most recent bid price which
may be based on valuations furnished from a pricing service or from independent
securities dealers. Short-term investments with remaining maturities of up to
and including 60 days are valued at amortized cost, which approximates market.
Short-term investments that mature in more than 60 days are valued at current
market quotations. Other securities and assets of the Fund are appraised at fair
value as determined in good faith by, or under the authority of, the Trustees.
B. SECURITY TRANSACTIONS AND RELATED INVESTMENT INCOME - Security transactions
are accounted for on the trade date (date the order to buy or sell is executed).
Dividend income is recorded on the ex-dividend date or when such information
becomes available, and interest income is recorded on the accrual basis.
Securities gains and losses are determined on the basis of identified cost.
C. FEDERAL TAXES - It is the Fund's policy to continue to comply with the
requirements of the Internal Revenue Code applicable to regulated investment
companies and to distribute all of its taxable income and capital gains, if any,
to its shareholders. Therefore, no Federal income or excise taxes on realized
income have been accrued.
D. DIVIDENDS AND DISTRIBUTIONS TO SHAREHOLDERS - Dividends and distributions are
recorded by the Fund on the ex-dividend date. The timing and characterization of
certain income and capital gains distributions are determined in accordance with
federal tax regulations which may differ from generally accepted accounting
principles. To the extent that such differences are permanent, a reclass to paid
in capital may be required.
E. CURRENCY TRANSLATION AND FORWARD CURRENCY CONTRACTS - Foreign currency
amounts are translated into U.S. dollars at the prevailing exchange rates as
follows: assets and liabilities at the rate of exchange at the end of the
period, purchases and sales of securities and expenses at the rate of exchange
prevailing on the dates of such transactions. The Fund from time to time may
enter into foreign currency transactions to convert to and from different
foreign currencies and to convert foreign currencies to and from the U.S.
dollar. The Fund enters into these transactions either on a spot basis at the
spot rate prevailing in the foreign currency exchange market or uses forward
currency exchange contracts to purchase or sell foreign currencies. Realized and
unrealized gains and losses on foreign currency transactions represent foreign
exchange gains and losses arising from the sale of holdings of foreign
currencies, foreign currency exchange rate fluctuations between trade dates and
settlement dates on securities transactions, and the difference between the
amounts of interest and dividends recorded on the books of the Fund and the
amount actually received.
<PAGE>
CIGNA INTERNATIONAL STOCK FUND Notes to Financial Statements (Unaudited)
(Continued)
2. INVESTMENT ADVISORY FEES AND OTHER TRANSACTIONS WITH AFFILIATES. Investment
advisory fees were paid or accrued to CIGNA Investments, Inc. (CII), certain
officers and directors of which are affiliated with the Fund. Such advisory fees
are based on an annual rate of 0.80% applied to the average daily net assets of
the Fund. CII has voluntarily agreed to reimburse such portion of its fee and
absorb other expenses as is necessary to cause the total annual operating
expenses of the Fund not to exceed 1.10% of the Fund's average daily net assets
(1.25% prior to July 1, 1996).
The Fund reimburses CII for a portion of the compensation and related expenses
of the Fund's Treasurer and Secretary and certain persons who assist in carrying
out the responsibilities of those offices. For the six months ended June 30,
1997, the Fund paid or accrued $10,175.
CII is an indirect, wholly-owned subsidiary of CIGNA Corporation.
3. TRUSTEES' FEES. Trustees' fees represent remuneration paid or accrued to
trustees who are not employees of CIGNA Corporation or any of its affiliates.
Trustees may elect to defer receipt of all or a portion of their fees which are
invested in mutual fund shares in accordance with a deferred compensation plan.
4. PURCHASES AND SALES OF SECURITIES. Purchases and sales of securities,
excluding short-term obligations, aggregated $4,785,146 and $4,248,139,
respectively, for the six months ended June 30, 1997. As of June 30, 1997 the
cost of securities for Federal income tax purposes was $6,939,701. At June 30,
1997, unrealized appreciation for Federal income tax purposes aggregated
$1,657,629 of which $1,888,902 related to appreciated securities and $231,273
related to depreciated securities.
5. FORWARD CURRENCY CONTRACTS. During the year, the Fund has entered into
various forward currency contracts under which it has been obligated to exchange
currencies at certain specified dates. Risks arise from the possible inability
of the counterparties to meet the terms of their contracts and from the movement
of currency values. The outstanding contract at June 30, 1997 was as follows:
Contract to
Settlement -------------------------------- Unrealized
Date Receive Deliver Appreciation
---- ------- ------- ------------
8/19/97 JPY 92,869,032 $825,296 $7,733
JPY = Japanese Yen
6. CAPITAL STOCK. The Fund offers an unlimited number of shares of beneficial
interest with a par value of $.001 per share. All of the shares outstanding at
December 31, 1996 were owned by the Century Indemnity Company. The only
transaction in capital stock for the period from January 1, 1996 to June 30,
1997 was the reinvestment of a dividend and distribution in the amount of
$335,398 in 29,723 additional shares on December 31, 1996.
<PAGE>
CIGNA INTERNATIONAL STOCK FUND Notes to Financial Statements (Unaudited)
(Continued)
8. FINANCIAL HIGHLIGHTS. The following selected per share data is computed on
the basis of a share outstanding throughout each period:
<TABLE>
<CAPTION>
- ------------------------------------------------------------------------------------------------------------------------------
(Unaudited)
Six Months Year Ended January 11, 1993*
Ended December 31, through
June 30, 1997 1996 1995 1994 December 31, 1993
- ------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
PER SHARE OPERATING PERFORMANCE:
NET ASSET VALUE, BEGINNING OF PERIOD $ 11.48 $ 11.27 $ 11.77 $ 13.21 $ 10.00
INCOME FROM INVESTMENT OPERATIONS
Net investment income** 0.06 0.08 0.15 0.04 0.09
Net realized and unrealized gains on
securities transactions, foreign currencies
and forward foreign exchange contracts 1.03 0.62 0.23 0.33 4.18
----- ----- ----- ----- -----
TOTAL FROM INVESTMENT OPERATIONS 1.09 0.70 0.38 0.37 4.27
----- ----- ----- ----- -----
LESS DISTRIBUTIONS:
Distributions from net investment income - (0.08) (0.15) (0.04) (0.09)
Distributions in excess of net investment - (0.12) (0.12) - (0.02)
Distributions from capital gains - (0.29) (0.61) (1.77) (0.95)
----- ------ ------ ------ ------
TOTAL DISTRIBUTIONS - (0.49) (0.88) (1.81) (1.06)
----- ------ ------ ------ ------
NET ASSET VALUE, END OF PERIOD $ 12.57 $ 11.48 $ 11.27 $ 11.77 $ 13.21
============= ============ ============ ============ ============
TOTAL INVESTMENT RETURN 9.49% 6.36% 3.40% 2.77% 42.73%
RATIOS AND SUPPLEMENTAL DATA:
Net assets, end of period (000 omitted) $ 8,831 $ 8,069 $ 7,581 $ 7,335 $ 7,136
Ratio of operating expenses to average net
assets (a) 0.56% 1.12% 1.14% 1.25% 1.25%
Ratio of net investment income to average net
assets (b) 0.53% 0.63% 0.37% 0.32% 0.75%
Portfolio turnover 56% 60% 63% 63% 66%
</TABLE>
a. Ratios of expenses to average net assets prior to expense reimbursements were
1.21%, 2.61%, 2.59%, 2.35% and 2.67%, respectively, for 1997, 1996, 1995,
1994 and 1993. Per share expenses prior to reduction were $0.14, $0.29,
$0.28, $0.29 and $0.30, respectively.
b. Ratios of net investment income to average net assets prior to expense
reimbursements were (0.12)%, (0.85)%, (1.08)%, (0.78)% and (0.73)%,
respectively, for 1997, 1996, 1995, 1994 and 1993. Per share net investment
loss amounts prior to reduction were $(0.01), $(0.10), $(0.12), $(0.10) and
$(0.08), respectively.
* Commencement of operations.
** Net investment income per share has been calculated in accordance with SEC
requirements, with the exception that end of year accumulated/
overdistributed) net investment income has not been adjusted to reflect
current year permanent differences between financial and tax accounting.
***For fiscal years beginning on or after September 1, 1995, a fund is required
to disclose its average commission rate per share for security trades on
which commissions are charged. This amount may vary from period to period
and fund to fund depending on the mix of trades executed in various markets
where trading practices and commission rule structures may differ.
