<PAGE> 1
[DIAZ-VERSON AMERICAS EQUITY FUND LOGO]
- --------------------------------------------------------------------------------
Dear Fellow Shareholder: July 16, 1996
The Diaz-Verson Americas Equity Fund (the "Fund") completed the first six
months of operations for 1996. We are pleased to present the Fund's semi-annual
report, including unaudited financial statements and the Fund's portfolio of
investments.
The emerging markets of Latin America have performed well year to date and
the Fund has responded by continuing a shift in assets from Canada to Argentina,
Chile, and Brazil. The reforms that took place in Latin America that inspired
the creation of the Fund remain intact, despite the effects on the region of the
Mexican Peso devaluation that occurred in December 1994. In Argentina,
convertibility has held, in Brazil, the Real Plan has tamed their quadruple
digit inflation, the Chilean economy remains robust, and even in Mexico foreign
capital has returned and signs of recovery are becoming evident. We continue to
be bullish for the prospects for the emerging markets of the Western Hemisphere.
For the six months ended June 30, 1996, the Fund's net asset value
appreciated 9.63%. If at any time you need to check your NAV please call us at
1-800-382-3863.
We continue to believe that the integration of the Latin countries into the
World community will result in increased trade, democratic participation and
cooperation, and will serve to benefit all the countries of the Western
Hemisphere. We believe it is indeed an opportune time to invest in the Americas.
Sincerely yours,
/s/ SALVADOR DIAZ-VERSON, JR.
-----------------------------
Salvador Diaz-Verson, Jr.
Past performance does not guarantee future results. Investment returns will vary
and, when
redeemed, shares may be worth more or less than their original cost.
<PAGE> 2
DIAZ-VERSON AMERICAS EQUITY FUND
PORTFOLIO HIGHLIGHTS
- --------------------------------------------------------------------------------
NET ASSETS $6,156,501
The Diaz-Verson Americas Equity Fund provides investors the opportunity to
participate in the growth of Latin American countries. The volatility associated
with Latin America is tempered by investment in the U.S. and Canada. The Fund is
suited for investors who desire long-term growth in principal and who can accept
higher short-term market fluctuations.
ASSET ALLOCATION JUNE 30, 1996
<TABLE>
<CAPTION>
MEASUREMENT PERIOD
(FISCAL YEAR COVERED)
[PIE CHART]
<S> <C>
ARGENTINA 12.46%
BRAZIL 2.68%
CANADA 36.95%
CHILE 21.99%
MEXICO 5.44%
VENEZUELA 0.54%
CASH* 19.94%
</TABLE>
Notes: *Cash includes a 17.67% investment in repurchase agreements and 2.27% in
receivables in excess of liabilities due to the Fund.
TOP TEN HOLDINGS, JUNE 30, 1996
<TABLE>
<CAPTION>
PERCENTAGE OF INVESTMENTS
-------------------------
<S> <C>
Cognos, Inc. 5.83%
Campbell Resources, Inc. 5.49%
Compania Interamericana de Automobile 5.20%
Bruncor, Inc. 4.80%
Donohue, Inc., CI A 4.67%
BCE, Inc. 4.65%
Industrias Penoles S.A. 4.49%
YPF Sociedad Anonima CI D--ADR 3.81%
A.F.P. Provida S.A.--ADR 3.68%
Empresa Nacional de Electridad S.A.--ADR 3.07%
</TABLE>
1
<PAGE> 3
DIAZ-VERSON AMERICAS EQUITY FUND
PORTFOLIO OF INVESTMENTS -- JUNE 30, 1996 (UNAUDITED)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Market
Shares Cost Value
- ----------- ---------- ----------
<C> <S> <C> <C>
COMMON STOCKS -- 80.06%
SOUTH AMERICA
ARGENTINA -- 12.46%
45,000 Compania Interamericana de Automobile**........................ $ 206,632 $ 312,750
(Automaker)
4,400 Telefonica de Argentina -- ADR+................................ 105,960 130,350
(Telecommunications)
7,700 Transportadora Gas Sur -- ADR+................................. 84,518 94,325
(Transporter of natural gas)
10,200 YPF Sociedad Anonima CI D -- ADR+ ............................. 210,680 229,500
(Producer & developer of natural gas)
---------- ----------
Total Argentina................................................ 607,790 766,925
---------- ----------
BRAZIL -- 2.68%
2,700 Aracruz Celulose S.A. -- ADR+.................................. 21,451 25,650
(Forest products & paper)
16,000 Souza Cruz S.A................................................. 122,868 139,442
(Producer and retailer of cigarettes & other tobacco products)
---------- ----------
Total Brazil................................................... 144,319 165,092
---------- ----------
CHILE -- 21.99%
8,900 A.F.P. Provida S.A. -- ADR+.................................... 214,451 221,388
(Financial services)
4,200 Banco O'Higgins -- ADR+........................................ 99,603 101,325
(Financial services-commercial banks)
4,400 Compania Cervecerias Unidas S.A. -- ADR+....................... 100,100 103,400
(Brewery)
1,800 Compania Telecommunicacion de Chile S.A. -- ADR+............... 166,862 176,625
(Utilities -- telecommunications)
4,000 Cristalerias de Chile -- ADR+.................................. 94,860 94,000
(Packaging & containers)
4,900 Embotelladora Andina S.A. -- ADR+.............................. 165,528 180,075
(Soda Bottler)
8,600 Empresa Nacional de Electridad S.A. -- ADR+.................... 173,511 184,900
(Utilities)
5,800 Enersis S.A. -- ADR+........................................... 155,522 179,800
(Utilities)
4,000 Madeco S.A. -- ADR+............................................ 89,798 112,500
(Metal fabricator)
---------- ----------
Total Chile.................................................... 1,260,235 1,354,013
---------- ----------
VENEZUELA -- 0.54%
50,000 Siderurgica Venezolana Sivensa, Saica Saca .................... 17,450 32,961
(Conglomerate -- steel; automotive parts; wire products)
---------- ----------
Total Venezuela................................................ 17,450 32,961
---------- ----------
</TABLE>
The accompanying notes are an integral part of the financial statements.
2
<PAGE> 4
DIAZ-VERSON AMERICAS EQUITY FUND
PORTFOLIO OF INVESTMENTS (CONTINUED) -- JUNE 30, 1996 (UNAUDITED)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Market
Shares Cost Value
- ----------- ---------- ----------
<C> <S> <C> <C>
COMMON STOCKS -- (CONTINUED)
NORTH AMERICA
CANADA -- 36.95%
6,800 Abitibi Price, Inc. ........................................... $ 118,696 $ 92,983
(Forest products & paper)
7,100 BCE, Inc. ..................................................... 236,515 279,804
(Telecommunications)
8,200 Brascan, Ltd. Cl A ............................................ 139,880 152,709
(Telecommunications)
15,200 Bruncor, Inc. ................................................. 264,650 288,643
(Telecommunications)
290,500 Campbell Resources, Inc.**..................................... 191,388 330,138
(Mining)
13,800 Canadian Tire Corp. ........................................... 184,087 183,137
(Retailer -- automobile parts and accessories)
6,300 Canadian Utilities, Ltd. Cl A.................................. 116,349 124,716
(Utilities)
15,300 Cognos, Inc.**................................................. 90,705 350,557
(Computer software/services)
21,400 Donohue, Inc., CI A............................................ 238,411 280,856
(Manufacturer of newsprint, market pulp, & lumber)
1,600 Fletcher Challenge, CI A....................................... 25,729 21,702
(Energy & forest products)
2,500 Fortis, Inc.................................................... 47,492 53,065
(Utilities -- electric)
16,300 Glamis Gold, Ltd. ............................................. 110,531 116,522
(Mining)
---------- ----------
Total Canada................................................... 1,764,433 2,274,832
---------- ----------
</TABLE>
The accompanying notes are an integral part of the financial statements.
3
<PAGE> 5
DIAZ-VERSON AMERICAS EQUITY FUND
PORTFOLIO OF INVESTMENTS (CONTINUED) -- JUNE 30, 1996 (UNAUDITED)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Shares/ Market
Face Amount Cost Value
- ----------- ---------- ----------
<S> <C> <C> <C>
COMMON STOCKS -- (CONTINUED)
NORTH AMERICA -- (CONTINUED)
MEXICO -- 5.44%
36,119 *Aristos CI B** (a)............................................ $ 138,800 $ 62,652
(Conglomerate)
59,000 Industrias Penoles S.A. ....................................... 251,739 270,425
(Mining)
748 *Grupo Video Prima S.A.**...................................... 4,109 2,020
(Retailer of videocassettes)
---------- ----------
Total Mexico................................................... 394,648 335,097
---------- ----------
Total Common Stocks............................................ 4,188,875 4,928,920
---------- ----------
Total Investments in Securities................................ 4,188,875 4,928,920
---------- ----------
REPURCHASE AGREEMENTS -- 17.67%
1,088,000 State Street Bank & Trust Co., Repo 4.00%, due 07/01/1996...... 1,088,000 1,088,000
Proceeds at maturity -- $1,088,363 (collateralized by: $755,000
U.S. Treasury Note 11.25%, 02/15/2015)
---------- ----------
Total Repurchase Agreements.................................... 1,088,000 1,088,000
---------- ----------
TOTAL INVESTMENTS -- 97.73%.................................... $5,276,875++ 6,016,920
=========
CASH AND OTHER ASSETS, NET OF LIABILITIES -- 2.27%............. 139,581
----------
NET ASSETS -- 100.00%.......................................... $6,156,501
=========
NET ASSET VALUE PER SHARE (600,486 SHARES OUTSTANDING)......... $10.25
=====
- ---------------
* Illiquid securities.
** Non-income producing security.
(a)Fair Value as determined by the Board of Directors.
+ American Depository Receipts.
++ For Federal Income Tax purposes:
Aggregate cost............................................................ $5,276,875
=========
Gross unrealized appreciation............................................. $ 849,831
Gross unrealized depreciation............................................. (109,786)
----------
Net unrealized appreciation............................................... $ 740,045
=========
</TABLE>
The accompanying notes are an integral part of the financial statements.
4
<PAGE> 6
DIAZ-VERSON AMERICAS EQUITY FUND
STATEMENT OF ASSETS AND LIABILITIES (UNAUDITED)
JUNE 30, 1996
- --------------------------------------------------------------------------------
<TABLE>
<S> <C>
ASSETS:
Investments in securities, at value
(Cost $4,188,875) (note 1)................................................ $4,928,920
Repurchase agreements (cost $1,088,000)...................................... 1,088,000
Cash (including foreign currency)............................................ 6,821
Receivable from adviser (note 3)............................................. 141,134
Dividends receivable......................................................... 3,042
Interest receivable.......................................................... 520
Deferred organizational expenses (note 1).................................... 45,534
Other assets................................................................. 23,084
----------
TOTAL ASSETS......................................................... 6,237,055
----------
LIABILITIES:
Organizational expenses payable.............................................. 5,070
Administration fee payable (note 3).......................................... 12,500
Other accrued expenses....................................................... 62,984
----------
TOTAL LIABILITIES.................................................... 80,554
----------
NET ASSETS........................................................... $6,156,501
==========
NET ASSETS CONSIST OF:
Shares of Capital Stock, $0.001 par value,
600,486 issued and outstanding (note 2)................................... $ 601
Additional paid-in capital................................................... 6,007,819
Undistributed net investment income.......................................... 8,366
Net realized loss on investments............................................. (600,103)
Net unrealized appreciation on investments and foreign currency.............. 739,818
----------
NET ASSETS........................................................... $6,156,501
==========
$10.25
NET ASSET VALUE PER SHARE ($6,156,501 / 600,486)..................... ==========
</TABLE>
The accompanying notes are an integral part of the financial statements.
5
<PAGE> 7
DIAZ-VERSON AMERICAS EQUITY FUND
STATEMENT OF OPERATIONS (UNAUDITED)
SIX MONTHS ENDED JUNE 30, 1996
- --------------------------------------------------------------------------------
<TABLE>
<S> <C>
INVESTMENT INCOME:
Dividends (net of foreign withholding taxes of $5,115)........................ $ 58,988
Interest...................................................................... 22,560
----------
TOTAL INCOME.......................................................... 81,548
----------
EXPENSES:
Administration services fees (note 3)......................................... 75,000
Investment management fees (note 3)........................................... 29,446
Custodian fees and expenses................................................... 24,662
Legal fees.................................................................... 21,461
Insurance..................................................................... 18,773
Reports to shareholders....................................................... 17,500
Audit fees.................................................................... 13,752
Amortization of organizational expenses (note 1).............................. 12,558
Directors' fees............................................................... 8,500
Registration fees............................................................. 8,010
Distribution expenses (note 3)................................................ 7,362
Transfer agent fees and expenses (note 3)..................................... 3,665
Fund accounting fees and expenses (note 3).................................... 385
Miscellaneous................................................................. 2,979
----------
TOTAL EXPENSES........................................................ 244,053
----------
LESS FUND EXPENSES WAIVED/REIMBURSED BY ADVISER (note 3).............. (170,580)
----------
NET EXPENSES.......................................................... 73,473
----------
NET INVESTMENT INCOME................................................. 8,075
----------
NET REALIZED AND UNREALIZED GAIN/(LOSS) ON INVESTMENTS:
Net realized loss on investments.............................................. (46,916)
Net realized gain on foreign currency transactions............................ 19,862
----------
Net realized loss............................................................. (27,054)
NET CHANGE IN UNREALIZED APPRECIATION ON:
Investments:
Net change in unrealized appreciation on investments....................... 561,605
Translation of other assets denominated in foreign currencies.............. (154)
----------
Net realized and unrealized gain on investments and foreign currency
transactions............................................................... 561,451
----------
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS............................ $ 542,472
==========
</TABLE>
The accompanying notes are an integral part of the financial statements.
6
<PAGE> 8
DIAZ-VERSON AMERICAS EQUITY FUND
STATEMENT OF CHANGES IN NET ASSETS (UNAUDITED)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SIX MONTHS ENDED YEAR ENDED
JUNE 30, DECEMBER 31,
1996 1995
---------------- ------------
<S> <C> <C>
INCREASE IN NET ASSETS:
Operations:
Net investment income/(loss).............................. $ 8,075 $ (7,891)
Net realized (loss) on investments and foreign currency
transactions............................................ (27,054) (447,524)
Net increase in unrealized appreciation on
investments and foreign currency........................ 561,451 539,506
---------- -----------
Net increase in net assets resulting from operations......... 542,472 84,091
Dividends and distributions to shareholders from:
Realized gain on investments.............................. -- --
---------- -----------
TOTAL DIVIDENDS AND DISTRIBUTIONS.................... -- --
---------- -----------
Decrease in net assets from capital
share transactions (note 2)............................... (26,921) (5,190)
---------- -----------
Net increase in net assets................................... 515,551 78,901
NET ASSETS:
Beginning of period.......................................... 5,640,950 5,562,049
---------- -----------
End of period................................................ $6,156,501 $5,640,950
========== ===========
</TABLE>
The accompanying notes are an integral part of the financial statements.
7
<PAGE> 9
DIAZ-VERSON AMERICAS EQUITY FUND
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 1996 (UNAUDITED)
- --------------------------------------------------------------------------------
1. SIGNIFICANT ACCOUNTING POLICIES. Diaz-Verson Americas Equity Fund (the
"Fund") is a portfolio of The Diaz-Verson Funds Inc., an open-end, diversified,
series management investment company organized as a Maryland corporation on
November 18, 1992. Prior to March 23, 1993, the Fund had no operations other
than the sale of 10,000 shares of common stock for $100,000 to Diaz-Verson
Capital Investments, Inc. (the "Adviser") on March 1, 1993. The Fund seeks to
provide long-term capital growth through investments primarily in common stocks
of issuers located in the Americas (defined as North America, Central America,
South America and island nations adjacent to those continents).
The following is a summary of the significant accounting policies followed
by the Fund in preparation of the financial statements.
Security Valuation: Portfolio securities and option positions for which
market quotations are readily available are stated at the last sale price
reported by the principal exchange for each such security as of the
exchange's close of business. Securities and options for which no sale has
taken place during the day and securities which are not listed on an
exchange are valued at the mean of the current bid and asked prices. Foreign
market closing prices are translated into U.S. dollar values using a
composite of particular foreign currencies last quoted on the valuation
date. Short-term investments denominated in U.S. dollars that will mature in
60 days or less are stated at amortized cost; short-term investments
denominated in foreign currencies are stated at the amortized cost as
determined in the foreign currency, translated to U.S. dollars at the
current day's exchange rate. Securities for which quotations are not readily
available are valued at their fair value as determined in good faith by the
Board of Directors, although the actual calculations may be made by persons
acting pursuant to or at the direction of the Board of Directors. The assets
of the Fund may also be valued on the basis of valuations provided by a
pricing service approved by the Board of Directors.
Investment Securities Transactions and Investment Income: Securities
transactions are recorded on the trade date. Realized gains and losses on
sales of investments are calculated on the identified cost basis. Dividend
income is recorded on the ex-dividend date, or as soon thereafter when the
information becomes publicly available. Interest income is recorded on an
accrual basis. Such dividend income and interest income is recorded before
non-U.S. withholding tax. Non-U.S. withholding tax is recorded as a
reduction of income.
Foreign Currency Transactions: The books and records of the Fund are
maintained in U.S. dollars as follows:
(i) market value of investment securities and other assets and liabilities
at the exchange rate on the valuation date, and
(ii) purchases and sales of investment securities, income and expenses at
the exchange rate prevailing on the respective date of such
transactions.
The resultant exchange gains and losses are included as net realized and
unrealized gains and losses in the Statement of Operations.
Dividends to Shareholders: Dividends from net investment income are declared
and paid annually. Distributions of net realized gains are normally declared
and paid at least annually.
Federal Income Taxes: It is the Fund's policy to comply with the
requirements of the Internal Revenue Code applicable to regulated investment
companies and to distribute substantially all of its taxable income to its
shareholders. Therefore, no Federal income tax provision is required.
At December 31, 1995, the Fund has a capital loss carryover of approximately
$568,129 which will expire at December 31, 2003. The capital loss carryover
will be available to offset future realized gains on securities transactions
to the extent provided for in the Internal Revenue Code.
Dividends and interest from non-U.S. sources received by the Fund are
generally subject to non-U.S. withholding taxes at rates ranging up to 25%.
Such withholding taxes may be reduced or eliminated under the
8
<PAGE> 10
DIAZ-VERSON AMERICAS EQUITY FUND
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
JUNE 30, 1996 (UNAUDITED)
- --------------------------------------------------------------------------------
terms of applicable U.S. income tax treaties, and the Fund undertakes those
procedural steps required to claim the benefits of such treaties. If more
than 50% in value of the Fund's total assets at the close of any taxable
year consists of stocks or securities of non-U.S. issuers, the Fund is
permitted and may elect to treat any non-U.S. taxes paid or accrued by it as
though it were paid by its shareholders.
In accordance with Statement of Position 93-2 Determination, Disclosure, and
Financial Statement Presentation of Income, Capital Gain, and Return of
Capital Distributions by Investment Companies, book and tax basis
differences relating to shareholder distributions and other permanent book
and tax differences are reclassified to undistributed net investment income.
As of December 31, 1995, the cumulative effect of such differences, is
represented by a decrease in paid in capital of $64,614, an increase in
undistributed net investment income of $93,333 and an increase in
accumulated net realized loss of $28,719. Net investment income, net
realized gains, and net assets were not affected by this change.
Deferred Organization Costs: The Fund incurred expenses of $126,000 in
connection with the organization of the Fund. These costs have been deferred
and are being amortized ratably on a straight line basis over a period of
sixty months from the date the Fund commenced investment operations.
Use of Estimates: Estimates and assumptions are required to be made
regarding assets, liabilities, and changes in net assets resulting from
operations when financial statements are prepared. Changes in the economic
environment, financial markets and any other parameters used in determining
these estimates could cause actual results to differ from these amounts.
2. CAPITAL STOCK TRANSACTIONS. The Diaz-Verson Funds Inc. has an authorized
capitalization of 100 million shares of $0.001 par value common stock.
Transactions were as follows:
<TABLE>
<CAPTION>
JUNE 30, 1996 DECEMBER 31, 1995
-------------------- --------------------
SHARES AMOUNT SHARES AMOUNT
------- ---------- ------- ----------
<S> <C> <C> <C> <C>
Beginning balance........... 603,556 $6,113,338 609,828 $6,118,528
------- ---------- ------- ----------
Shares sold................. 11,266 113,425 74,446 654,522
Shares redeemed............. (14,336) (140,346) (80,718) (659,712)
------- ---------- ------- ----------
Net increase/(decrease)..... (3,070) (26,921) (6,272) (5,190)
------- ---------- ------- ----------
Ending balance.............. 600,486 $6,086,417 603,556 $6,113,338
======= ========= ======= =========
</TABLE>
3. COMMITMENTS AND RELATED AGREEMENTS. Adviser: Diaz-Verson Capital
Investments, Inc. (the "Adviser") serves as the Adviser for the Fund and directs
investments of the Fund pursuant to the Investment Advisory Agreement dated
March 2, 1993 (the "Advisory Agreement"). Under the Advisory Agreement with the
Fund, the Adviser also provides order placement facilities for the Fund and pays
all compensation of Directors and officers of the Fund who are affiliated with
the Adviser. The Adviser or its affiliates also furnish the Fund without charge,
management supervision and assistance and office facilities and provides persons
satisfactory to the Fund's Board of Directors to serve as the Fund's officers
and managers of day-to-day operations. The Fund pays the Adviser fees at the
annual rate of 1% of the average daily net assets of the Fund. The Adviser
waived $29,446 in investment management fees for the six months ended June 30,
1996.
The Advisory Agreement also provides that the Adviser will make arrangements to
limit the Fund's total annual expense ratio to no more than 2.50%. Pursuant to
this agreement, for the six months ended June 30, 1996, $141,134 (less
distribution expenses of $7,362) will be reimbursed by the Adviser.
9
<PAGE> 11
DIAZ-VERSON AMERICAS EQUITY FUND
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
JUNE 30, 1996 (UNAUDITED)
- --------------------------------------------------------------------------------
Certain of the states in which the shares of the Fund are qualified for sale
impose limitations on the expenses of funds. If, in any fiscal year, the total
expenses of the Fund (excluding taxes, interest, distribution expenses,
brokerage commissions, certain portfolio transaction expenses, other
expenditures which are capitalized in accordance with generally accepted
accounting principles and extraordinary expenses, but including the advisory and
administrative services fees) exceed the expense limitations applicable to the
Fund imposed by the securities regulations of any state, the Adviser will pay or
reimburse the Fund to the extent of advisory earned fees. Due to the expense cap
of 2.50%, no such amounts were required to be reimbursed for the six months
ended June 30, 1996.
Administrator: Furman Selz LLC (the "Administrator") serves as the Fund's
administrator under an Administration Contract. The Administrator's services
include day-to-day administration of matters related to the corporate existence
of the Fund, maintenance of the records and preparation of reports, subject to
the supervision of the officers and the Directors of the Fund. For these
services, the Fund pays a monthly fee, at the annual rate of .15% of the average
daily net assets of the Fund. (Prior to January 1, 1996 subject to a minimum fee
of $24,000 annually.) As of January 1, 1996 the minimum annual fee to be paid to
the Administrator was increased to $150,000, which includes fund accounting and
transfer agent services. For the six months ended June 30, 1996, the
Administrator earned a fee of $75,000.
Shareholder Servicing Agent, Dividend Paying Agent and Registrar: Furman Selz
LLC acts as the Fund's transfer agent. In addition to acting as the Shareholder
Servicing Agent for the Fund, Furman Selz LLC also acts as Dividend Paying Agent
and Registrar for the Fund.
Fund Accounting Agreement: The Fund has approved a Fund Accounting Agreement
with Furman Selz LLC whereby Furman Selz LLC keeps current accounting records,
including calculation of net asset value.
Distribution Services Agreement: Pursuant to Rule 12b-1 of the Investment
Company Act of 1940, the Fund has entered into a Distribution Services Agreement
(the "Distribution Agreement") with Performance Funds Distributor, Inc. (the
"Distributor"), an affiliate of Furman Selz LLC. The Fund may pay a distribution
services fee to the Distributor at an annual rate of .25 (prior to May 1, 1995
the rate was .50) of 1% of the aggregate average daily net assets of the Fund.
For the six months ended June 30, 1996, the Fund incurred $7,362 in distribution
expenses.
4. REPURCHASE AGREEMENTS. The Fund is permitted to enter into repurchase
agreements pertaining to U.S. Government securities with member banks of the
Federal Reserve System or with primary dealers (as designated by the Federal
Reserve Bank of New York) of such securities. The Fund must maintain with its
Custodian for its account in the Federal Treasury Book Entry System, collateral
in an amount equal to, or in excess of, the resale price. In the event of a
counterparty's bankruptcy, the Fund may be delayed in, or prevented from,
selling the collateral for the Fund's benefit.
5. PURCHASES AND SALES OF SECURITIES. The cost of purchases and proceeds from
sales of securities, other than short-term investments, for the six months ended
June 30, 1996 were $1,525,921 and $1,915,549, respectively.
6. CONCENTRATION OF RISK. The Fund invests in obligations of foreign entities
and securities denominated in foreign currencies that involve risk not typically
involved in domestic investments. Such risks include fluctuations in foreign
exchange rates, ability to convert proceeds into U.S. dollars, less publicly
available information about foreign financial instruments, less liquidity
resulting from substantially less trading volume, more volatile prices and
generally less government supervision of foreign securities markets and issuers.
10
<PAGE> 12
DIAZ-VERSON AMERICAS EQUITY FUND
FINANCIAL HIGHLIGHTS (UNAUDITED)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
FOR THE FOR THE PERIOD
SIX MONTHS FOR THE FOR THE MARCH 23, 1993
ENDED YEAR ENDED YEAR ENDED (COMMENCEMENT OF
JUNE 30, DECEMBER 31, DECEMBER 31, OPERATIONS) THROUGH
PER SHARE OPERATING PERFORMANCE 1996 1995 1994 DECEMBER 31, 1993
- --------------------------------------- ---------- ------------ ------------ -------------------
<S> <C> <C> <C> <C>
Net asset value, beginning of period... $ 9.35 $ 9.12 $12.95 $ 10.00
---------- ------------ ------------ --------
Income (loss) from investment
operations:
Net investment income+............... 0.01 (0.01) (0.16) (0.05)
Dividends and distributions to
shareholders from:
realized gain on investments+........ -- -- (0.87) --
Net realized and unrealized gain (loss)
on investments and foreign currency
transactions......................... 0.89 0.24 (2.80) 3.00
---------- ------------ ------------ --------
Total income (loss) from investment
operations........................... 0.90 0.23 (3.83) 2.95
---------- ------------ ------------ --------
Net asset value, end of period......... $10.25 $ 9.35 $ 9.12 $ 12.95
========= =========== =========== ================
Total return......................... 9.63% 2.52% (26.68)% 29.50%
Net assets, end of period (in
000's)............................ $6,156 $ 5,641 $5,562 $ 6,341
Ratios to average net
assets/supplemental data:
Net investment income................ 1.28%* (0.14)% (1.37)% (0.63)%*
Expenses net of reimbursement++...... 2.50%* 2.50% 2.44% 2.25%*
Portfolio turnover rate.............. 39% 142% 164% 82%
</TABLE>
- ---------------
+ Per share data based upon average monthly shares outstanding.
++Ratios of expenses before effect of reimbursements were 8.30%, 7.96%, 6.52%
and 7.34%
(annualized), respectively.
* Annualized.
11
<PAGE> 13
ADVISER
Diaz-Verson Capital Investments, Inc.
1200 Brookstone Centre Parkway,
Suite 105
Columbus, Georgia 31904
Tel: 1-800-343-5133
ADMINISTRATOR AND SHAREHOLDER
SERVICING AGENT
Furman Selz LLC
230 Park Avenue
New York, New York 10169
CUSTODIAN
State Street Bank and Trust Company
P.O. Box 1713
Boston, Massachusetts 02105-1713
LEGAL COUNSEL
Fulbright & Jaworski L.L.P.
666 Fifth Avenue
New York, New York 10103
DISTRIBUTOR
Performance Funds Distributor, Inc.
230 Park Avenue
New York, New York 10169
INDEPENDENT AUDITORS
KPMG Peat Marwick LLP
345 Park Avenue
New York, NY 10154
BOARD OF DIRECTORS AND OFFICERS
Salvador Diaz-Verson, Jr. Michael K. Majure, Esq.
Chairman of the Director, Vice President,
Board of Directors and Treasurer and Secretary
President
The Honorable Otto J. Reich Wendy Rudolph, Esq.
Director Director
Scott M. Koser Sheryl Hirschfeld
Assistant Secretary Assistant Secretary
Gordon M. Forrester
Assistant Treasurer
[DIAZ-VERSON AMERICAS EQUITY FUND LOGO]
SEMI-ANNUAL REPORT
JUNE 30, 1996
