<PAGE>
INVESTMENT MANAGER
Legg Mason Fund Adviser, Inc.
Baltimore, MD
INVESTMENT ADVISER
Batterymarch Financial Management, Inc.
Boston, MA
BOARD OF DIRECTORS
John F. Curley, Jr., Chairman
Edward A. Taber, III, President
Richard G. Gilmore
Charles F. Haugh
Arnold L. Lehman
Dr. Jill E. McGovern
T. A. Rodgers
TRANSFER AND SHAREHOLDER SERVICING AGENT
Boston Financial Data Services
Boston, MA
CUSTODIAN
State Street Bank & Trust Company
Boston, MA
COUNSEL
Kirkpatrick & Lockhart
Washington, DC
INDEPENDENT ACCOUNTANTS
Coopers & Lybrand L.L.P.
Baltimore, MD
THIS REPORT IS NOT TO BE DISTRIBUTED UNLESS PRECEDED OR ACCOMPANIED BY A
PROSPECTUS.
LEGG MASON WOOD WALKER, INCORPORATED
111 South Calvert Street
P.O. Box 1476, Baltimore, MD 21203-1476
410 (Bullet) 539 (Bullet) 0000
(recycle logo) PRINTED ON RECYCLED PAPER
LMF-042
REPORT TO SHAREHOLDERS
FOR THE PERIOD ENDED
JUNE 30, 1995
THE
LEGG MASON
GLOBAL
EQUITY
TRUST
PUTTING YOUR FUTURE FIRST
(Legg Mason logo)
<PAGE>
TO OUR SHAREHOLDERS,
Welcome to the Legg Mason Global Equity Trust! The Fund, which was
launched on February 17, 1995, has grown to almost $30 million in net
assets, and its net asset value per share has appreciated from $10.00
at launch to $10.40 as of June 30, 1995.
The Fund seeks to obtain maximum long-term total return through
investments in common stocks of companies located anywhere in the
world, including the United States. Additionally, the Fund may invest
up to 35% of its assets in the securities of companies located in
developing or emerging countries and markets. As of June 30, 1995, 63%
of the Fund's assets were invested in developed countries outside the
U.S., 18% in emerging countries, 10% in the U.S. and 9% in cash.
On the following pages, the Fund's portfolio managers, Charles
Lovejoy and Stephen McCarthy, review the portfolio's structure and
performance and comment on the investment outlook for global equities.
Investments in global equities should be considered a core part of
any well diversified investment portfolio. We hope you will consider
using the Global Equity Trust for investments of additional funds as
they become available. Some shareholders take advantage of Legg
Mason's Future First Systematic Investment Plan. Under this plan, you
may arrange for automatic monthly investments in the Fund of $50 or
more by authorizing the Fund's transfer agent, Boston Financial Data
Services, to prepare a check each month drawn on your checking
account. Please contact your Investment Executive for further
information.
The Board of Directors has approved an income dividend of $.02
payable on August 2, 1995 to shareholders of record July 28, 1995.
Most shareholders will receive the dividend in the form of additional
shares credited to their accounts.
Once again, welcome to the Legg Mason Global Equity Trust.
Sincerely,
(signature)
Edward A. Taber, III
President
August 4, 1995
<PAGE>
PORTFOLIO MANAGERS' COMMENTS
SUMMARY
In the three months ending June 30, 1995, Legg Mason Global Equity
Trust advanced 3.07%. During the same period, the Lipper Global Funds
average rose 7.21%, while the Morgan Stanley All Country World Index
increased 4.45%.
FUND REVIEW
The Fund completed its first full calendar quarter since its inception
on February 17, 1995. It remained nearly fully invested throughout the
period as new assets were added to the portfolio.
During the quarter, the Fund was well diversified among global
markets. At the end of March, it was invested in 29 stock markets around
the world. By June 30, the Fund's assets were allocated among 33 markets,
including the United States, which represented approximately 10% of
overall holdings. At quarter-end, the Fund's assets were allocated as
follows:
<TABLE>
<S> <C>
Europe 32%
Japan 23
Pacific Rim 13
US 10
Latin America 9
Other markets 4
Cash 9
</TABLE>
The Fund's short-term disappointment was due to an underweighted
position in the US versus other global funds in the Lipper universe, as
well as higher relative exposure to Japan. Performance benefited, however,
from overweighted positions in emerging markets and an underweighting in
Europe.
GLOBAL MARKET OVERVIEW
A number of equity markets experienced significant increases or
declines in second-quarter 1995. In the US, for example, the market nearly
duplicated its strong first-quarter performance, reaching an all-time high
as the S&P 500 gained over 9%. Meanwhile, the Japanese market was stalled.
The strong yen, trade uncertainties and the Kobe earthquake continued to
hurt the market and delayed expectations for recovery. For the quarter,
the Japan TOPIX Index dropped 6.4% in US dollars and 8.5% in local
currency.
In the emerging markets, Latin America recovered some of its losses
from the first quarter. The Mexico Bolsa Index increased 30.1%, while the
Brazil Bovespa Index gained 17.6%. The Latin American regional index
gained 18.9%. The Morgan Stanley Emerging Markets Free Index, representing
emerging markets globally, advanced 10.4% for the quarter.
STRATEGIC OUTLOOK
We believe that there will continue to be attractive opportunities for
stock selection in both developed and emerging markets. Our strategy for
the Fund is to remain fully invested and well diversified across global
markets.
Charles F. Lovejoy, CFA
Stephen J. McCarthy, CFA
August 4, 1995
2
<PAGE>
INDUSTRY DIVERSIFICATION
LEGG MASON GLOBAL TRUST, INC.
GLOBAL EQUITY TRUST
JUNE 30, 1995
<TABLE>
<CAPTION>
% of Net Market
Assets Value
(000)
<S> <C> <C>
Aerospace 0.8% $ 215
Agriculture/Food 3.9 1,100
Aluminum 0.3 90
Apparel/Textiles 1.5 433
Banks 3.5 1,007
Beverages 2.4 673
Business Machines 1.3 371
Chemicals 3.5 1,006
Construction 8.8 2,502
Consumer Durables 0.6 179
Containers 0.8 232
Cosmetics 0.2 45
Domestic Oil Reserves 0.9 252
Drugs/Medicine 3.3 954
Electric Utilities 5.4 1,545
Electronics 6.5 1,862
Finance 5.3 1,523
Gas Utilities 0.9 261
Health (Non-Drug) 0.4 108
Hotel/Restaurant 0.6 179
Iron & Steel 3.0 866
Leisure/Luxury 0.4 117
Life Insurance 2.8 785
Liquor 0.9 244
Media 1.5 431
Miscellaneous 0.5 131
<CAPTION>
% of Net Market
Assets Value
(000)
<S> <C> <C>
Mortgage Finance 0.2% $ 52
Motor Vehicles 3.0 846
Non-ferrous Metals 2.0 572
Oil Refining/Distribution 0.2 51
Oil Service 1.1 318
Paper 3.5 993
Photo/Optical 0.4 108
Pollution Control 0.1 36
Producer Goods 2.8 786
Publishing N.M. 13
Railroads/Transit 0.4 116
Real Property 3.4 975
Retail (Food) 0.9 265
Retail (Non-Food) 3.6 1,030
Services 3.1 888
Soap/Housewares 0.3 92
Telecommunications 2.8 792
Tire & Rubber 0.4 126
Tobacco 0.6 171
Trucking/Freight 1.6 455
Water Transport 0.5 156
Short-Term Investments 8.7 2,486
Total Investment Portfolio 99.6 28,438
Other Assets Less Liabilities 0.4 101
NET ASSETS 100.0% $ 28,539
</TABLE>
N.M. NOT MEANINGFUL.
3
<PAGE>
STATEMENT OF NET ASSETS
LEGG MASON GLOBAL TRUST, INC.
GLOBAL EQUITY TRUST
JUNE 30, 1995 (UNAUDITED)
<TABLE>
<CAPTION>
(Amounts in Thousands) Shares Value
<S> <C> <C>
COMMON STOCKS AND EQUITY INTERESTS -- 90.7%
Argentina -- 1.6%
Comercial Del Plata S.A. 93 $ 231
Migor SACIFIA ADS 105 236(A,B)
467
Australia -- 2.4%
Advance Bank Australia Limited 8 51
Advance Bank Australia Limited
Rights 5 2(A)
Boral Limited 41 102
Broken Hill Proprietary Company
Limited 5 68
CSR Limited 18 57
Lend Lease Corporation Limited 3 37
Mayne Nickless Ltd. 15 64
Normandy Mining Limited 49 60
Santos Limited 47 113
Schroders Property Fund 22 34
Wesfarmers Ltd. 6 36
Westfield Trust 30 52
676
Brazil -- 2.9%
Aracruz Celulose S.A. ADR 21 251
Companhia Energetica De Minas ADR 10 204
Iochpe Maxion S.A. ADR 19 183
Usiminas Siderurgicas de Minas ADS 19 206(A,B)
844
Canada -- 1.6%
Bank of Montreal 2 50
Canadian Imperial Bank of Commerce 2 48
Hudson's Bay Company 2 34
Imasco Ltd. 3 57
MacMillan Bloedel Ltd. 6 85
Noranda Inc. 3 59
TELUS Corporation 6 77
Transcanada Pipelines Ltd. 4 51
461
Chile -- 1.6%
Chilquinta S.A. ADR 14 243(B)
Vina Concha y Toro S.A. ADR 12 225
468
<CAPTION>
(Amounts in Thousands) Shares Value
<S> <C> <C>
China -- 1.8%
Jilin Chemical Industrial Company 989 $ 197(A)
Luoyang Glass Company Limited 310 157
Shanghai New Asia Company Ltd. 398 160(A)
514
Columbia -- 0.6%
Cementos Diamante S.A. ADR 6 168(B)
Denmark -- 0.8%
Den Danske Bank 1 50
Sophus Berendsen AS 1 57
Superfos AS 1 114
221
Finland -- 0.4%
Kesko 4 42
Kone Corporation N.M. 23
Metsa-Serla Oy 1 49
114
France -- 3.1%
Alcatel Cable N.M. 24
Societe Bic S.A. 1 99
Cie de Navigation Mixte N.M. 21
Cie Fonciere Internationale N.M. 11
Cie Generale d'Industrie et de
Participations N.M. 70
Comptoirs Modernes N.M. 31
Eridania Beghin-Say SA N.M. 16
LVMH Moet Hennessy N.M. 36
Marine-Wendel 1 60
Pernod Ricard 1 99
Roussel-Uclaf 1 109
Saint Louis N.M. 62
Sefimeg 1 53
Societe Nationale Elf Aquitaine 1 44
Sovac 1 106
Worms et Compagnie 1 34
875
Germany -- 1.4%
AGIV-AG N.M. 32
Bayer AG 1 100
Bayerische Vereinsbank AG N.M. 30
Berliner Handels & Frankfurter Bank N.M. 53
Berliner Kraft Und Licht N.M. 25
Commerzbank AG N.M. 48
Hoechst AG N.M. 43
RWE AG 1 69
400
</TABLE>
4
<PAGE>
<TABLE>
<CAPTION>
(Amounts in Thousands) Shares Value
<S> <C> <C>
Greece -- N.M.
A.G. Petzetakis S.A. 1 $ 2
Hong Kong -- 2.8%
Henderson Land Development Company
Ltd. 8 44
Hong Kong Aircraft Engineering Ltd. 14 36
Hong Kong Telecommunications Ltd. 59 116
Hopewell Holdings Limited 75 63
HSBC Holdings PLC 14 185
Hutchison Whampoa Limited 27 130
Hysan Development Company Ltd. 23 53
Regal Hotels International 100 20
Shaw Brothers (Hong Kong) Ltd. 39 37
Shun Tak Holdings Ltd. 84 67
Tai Cheung Holdings 49 43
794
India -- 2.6%
Arvind Mills Limited GDR 34 177
Great Eastern Shipping GDR 22 153(A)
Hindalco Industries Ltd. GDR 7 196
Indian Petrochemicals GDR 3 55(A)
Tate Engineering & Locomotive
Company Limited GDR 8 162(A)
743
Indonesia -- 1.9%
PT Hanjaya Mandala Sampoerna 24 189(A)
PT Indocement Tunggal Prakarsa 53 206(A)
PT Indosat 38 146
541
Ireland -- 0.8%
Allied Irish Banks PLC 20 93
Anglo Irish Bank Corporation PLC 21 18
Bank of Ireland 16 93
Smurfit (Jefferson) Group 5 14
218
Italy -- 1.0%
Banca Commerciale Italiana 21 48
Banca Di Roma SpA 53 48(A)
Burgo (Cartiere) SpA 7 46
Fidis Finanziaria di Sviluppo SpA 52 111
Sirti SpA 5 38
291
Japan -- 23.3%
Achilles Corporation 8 29
Aoki Corporation 20 73(A)
Atsugi Nylon Industrial Co. 22 106
Best Denki Company Ltd. 2 30
<CAPTION>
(Amounts in Thousands) Shares Value
<S> <C> <C>
Japan -- Continued
Bridgestone Corporation 3 $ 44
Brother Industries, Ltd. 6 27
Canon Incorporated 2 33
Chubu Electric Power 2 47
Chudenko Corporation 2 79
Chugoku Electric Power 4 112
Citizen Watch Co., Ltd. 7 43
Dai Tokyo Fire & Marine Insurance 6 42
Daiichi Pharmaceutical 6 88
Daiwa House Industry 3 46
Daiwa Kosho Lease Co. Ltd. 6 55
Daiwa Securities Co. Ltd. 3 32
Eisai Company Ltd. 2 34
Ezaki Glico Company 12 106
Fuji Photo Film Company 3 71
Fujisawa Pharmaceutical Company 4 42
Fujita Corporation 9 42
Futaba Industrial 1 16
Gunze Limited 17 106
Haseko 1 5
Hazama-Gumi Corporation 10 42
Hibiya Engineering 2 21
Hitachi 5 50
Hitachi Cable 7 46
Hitachi Credit Corporation 2 34
Hitachi Koki Company 7 62
Hokkaido Electric Power 3 83
Hokkaido Takushoku Bank 27 74
Hokuriku Electric Power 4 109
House Food Industry 2 42
Itoham Foods Incorporated 8 61
Iwate (Bank of) 1 44
Kandenko Company 5 68
Kawasaki Heavy Indiana 11 41
Kikkoman Corporation 8 56
Kirin Brewery Company 5 53
Komori Corporation 1 20
Konica Corporation 6 37
Kyocera Corporation 1 82
Kyowa Exeo Corporation 1 9
Kyowa Hakko Kogyo 5 48
Kyudenko Corporation 4 56
Kyushu Electric Power 4 119
Lion Corporation 16 93
Maruichi Steel Tube 1 19
Matsushita Electric Industrial Co. 3 47
Matsushita Kotobuk 2 39
Mitsubishi Material 25 112
Mizuno Corporation 10 91
</TABLE>
5
<PAGE>
STATEMENT OF NET ASSETS -- CONTINUED
LEGG MASON GLOBAL TRUST, INC.
GLOBAL EQUITY TRUST
<TABLE>
<CAPTION>
(Amounts in Thousands) Shares Value
<S> <C> <C>
Japan -- Continued
Nagase & Company 7 $ 55
National House Industrial 2 37
New Japan Securities 6 26(A)
Nichicon Corporation 3 36
Nichii Company 2 22
Nintendo Company 1 46
Nippon Chemical Industrial 6 40
Nippon Denwa Shisetsu 3 25
Nippon Meat Packer 4 59
Nippon Metal Industries 16 58
Nippon Shokubai Company 5 44
Nippon Soda Company 9 39(A)
Nippon Steel Corporation 17 55
Nippon Trust Bank 9 30(A)
Nippondenso Company 2 36
Nishimatsu Construction 5 59
Nisshin Oil Mills 10 69
Nisshin Steel Company 12 44
Okuma Corporation 8 51(A)
Okumura Corporation 4 38
Ono Pharmaceutical 1 43
Onward Kashiyama 2 27
Ryobi Limited 11 55
Sanki Engineering 4 37
Sankyo Aluminum Industry Co. 11 53
Sankyo Company 1 23
Santen Pharmaceutical Company 3 80
Sanwa Shutter Corporation 8 60
Sega Enterprises 2 71
Sekisui Chemical 5 59
Sekisui House Ltd. 8 99
Shikoku Electric Power 4 111
Shimachu Company 1 25
Shimano Incorporated 1 17
Shin Etsu Chemical Company 2 35
Shiseido Company 4 45
Showa Electric Wire 24 103
Sony Corporation 1 43
Sony Music Entertainment Inc. 3 114
Sumitomo Electric Industries 3 36
Sumitomo Forestry 6 100
Sumitomo Metal Industries 41 107
Sumitomo Osaka Cement 28 103
Sumitomo Realty & Development 9 54
Suntelephone Company 2 13
SXL Corporation 4 43
Tadano 4 30
Taihei Dengyo 1 15
Taisei Corporation 9 53
<CAPTION>
(Amounts in Thousands) Shares Value
<S> <C> <C>
Japan -- Continued
Takasago Thermal Engineering 3 $ 47
Takeda Chemical Industries 8 106
Takuma Company 3 28
TDK Corporation 1 46
Teikoku Oil Company 2 12
Toa Steel Company 5 25(A)
Toda Corporation 5 44
Tohoku Electric Power 2 61
Tokyo Steel Manufacturing 1 17
Tokyo Style Company 3 45
Tokyo Tatemono Company 6 30
Toppan Printing Company 1 13
Toyo Engineering 11 63
Toyo Seikan Kaisha 1 29
Toyo Trust & Banking 5 42
Toyoda Auto Loom 2 36
Toyota Motor Corporation 3 59
Tsubakimoto Chain 18 85
UBE Industries Ltd. 12 42
Uni-Charm Corporation 3 59
Unisia Jecs Corporation 5 26
Yamamura Glass Company 6 39
Yamanouchi Pharmaceuticals 3 68
Yasuda Trust & Banking 6 39
Yokohama Rubber Company 15 80
Yurtec Corporation 1 22
6,652
Mexico -- 1.7%
Panamerican Beverages, Inc. 9 258
Tolmex S.A. de CV 58 226
484
Netherlands -- 4.9%
ABN-Amro Holding NV 1 54
ACF Holding NV 2 57
Aegon NV 2 61
Ahrend Groep 1 40
Cap Volmac Group NV 6 90
DSM NV 1 60
Fortis Amev NV 3 116
Getronics NV 1 64
Hagemeyer 1 45
Heineken NV N.M. 45
Hollandsche Beton Groep NV N.M. 52
Hoogovens & Staalfabrieken NV 2 76
IHC Caland NV 2 51
Internatio-Muller NV 1 50
International Nederlanden Groep NV 1 50
Koninklijke Bijenkorf Beheer 1 43
</TABLE>
6
<PAGE>
<TABLE>
<CAPTION>
(Amounts in Thousands) Shares Value
<S> <C> <C>
Netherlands -- Continued
Koninklijke Van Ommeren NV 2 $ 64
Koninklijke Volker Stevin NV 1 77
Nutricia Vereenigde Bedrijven NV 1 49
Otra NV N.M. 21
Royal Dutch Petroleum 1 73
Stad Rotterdam NV 2 65
Stad Rotterdam NV Rights 2 1(A)
Unilever NV 1 111
1,415
New Zealand -- 0.9%
Brierley Investments Ltd. 123 93
Telecom Corporation of New Zealand
Limited 23 85
Wilson & Horton Ltd. 14 79
257
Norway -- 0.4%
Aker AS 4 49
Norsk Hydro AS 1 59
108
Peru -- 0.7%
Cementos Lima S.A. ADR 6 99(B)
CPT Telefonica del Peru S.A. 60 102
201
Philippines -- 1.4%
Metropolitan Bank & Trust Company 8 182
SM Prime Holdings Inc. 754 207(A)
389
Portugal -- 1.1%
Portucel Industrial Empresa ADS 15 110(A,B)
Portugal Telecom SA 11 207(A)
317
Singapore -- 0.1%
Dairy Farm International Holdings
Ltd. 35 30
Spain -- 3.3%
Acerinox SA N.M. 49
Amper SA 13 101(A)
Autopistas del Mare Nostrum SA 5 65
Banco Bilbao Vizcaya 2 61
Banco Central Hispanoamericano 2 51
Banco Popular Espanol SA N.M. 45
Banco Santander SA 1 51
Compania Sevillana de Electricidad 12 73
Dragados & Construcciones SA 4 52
<CAPTION>
(Amounts in Thousands) Shares Value
<S> <C> <C>
Spain -- Continued
Fuerzas Electric Catal 20 $ 116
Gas y Electridad SA N.M. 19
Huarte SA 8 73
Iberdrola SA 8 56
Tabacalera SA 2 56
Union Electrica Fenosa SA 14 65
933
South Korea -- 1.2%
Pohang Iron & Steel Company Ltd.
ADR 6 171
Samsung Electronics Co. 3 164(A)
335
Sweden -- 1.8%
Electrolux AB 1 41
Hennes & Mauritz AB 1 76
Incentive AB 2 85
Mo Och Domsjo AB 2 110
Svenska Cellulosa AB 6 102
Svenska Handelsbanken, Inc. 6 89
503
Switzerland -- 0.4%
Baloise-Holdings Ltd. N.M. 69
Nestle S.A. N.M. 57
126
Thailand -- 0.7%
Bangkok Bank Company Ltd. 19 207
United Kingdom -- 12.1%
Albert Fisher Group PLC 76 56
Anglian Water PLC 6 46
Arjo Wiggins Appleton PLC 21 85
B.S.G. International PLC 67 64
Boots Company PLC 12 95
Brixton Estate PLC 27 79
BTR PLC 20 100
Caradon PLC 7 28
Charter PLC 7 104
Coats Viyella PLC 23 67
Commercial Union PLC 8 75
Cray Electronics Holdings PLC 63 56
Eastern Group PLC 5 57
General Accident PLC 9 87
General Electric Company PLC 5 26
Great Portland Estates PLC 29 79
Harrisons & Crosfield PLC 2 5
Hickson International PLC 15 29
</TABLE>
7
<PAGE>
STATEMENT OF NET ASSETS -- CONTINUED
LEGG MASON GLOBAL TRUST, INC.
GLOBAL EQUITY TRUST
<TABLE>
<CAPTION>
(Amounts in Thousands) Shares Value
<S> <C> <C>
United Kingdom -- Continued
Iceland Group PLC 19 $ 54
Kwik Save Group PLC 7 68
Ladbroke Group PLC 15 41
Land Securities PLC 9 84
Lloyds Abbey Life PLC 16 98
London Electricity PLC 10 98
Manweb PLC 6 59
Marley PLC 40 73
MEPC PLC 8 50
Midlands Electricity PLC 10 97
National Westminster Bank PLC 7 57
North West Water PLC 6 55
Northumbrian Water Group PLC 3 50
Norweb PLC 5 55
Ocean Group PLC 11 52
P + O 6 51
Pentland Group PLC 31 64
Powerscreen International PLC 14 72
Rothmans International PLC Units 5 49
Royal Insurance Holdings PLC 15 72
Severn Trent Water PLC 5 46
Slough Estates PLC 21 75
Smithkline Beecham Units 6 51
South Wales Electricity PLC 9 99
South West Water PLC 6 45
Southern Electric PLC 6 62
Southern Water PLC 6 57
Sun Alliance Group PLC 9 49
Thames Water PLC 9 68
The Merchants Trust PLC 12 52
Transport Development Group PLC 15 57
Welsh Water PLC 9 97
Wessex Water PLC 14 67
Willis Corroon Group PLC 31 74
Yorkshire Electricity PLC 6 65
Yorkshire Water PLC 5 49
3,450
United States -- 9.4%
Adobe Systems, Inc. N.M. 17
AlliedSignal, Inc. 1 58
Aluminum Company of America 2 90
American Electric Power Company 3 109
Archer Daniels Midland Company 4 76
Baker Hughes, Inc. 2 43
Ball Corporation 2 49
Barnett Banks, Inc. 1 72
Boston Scientific Corporation 1 32(A)
Bruno's, Inc. 4 51
<CAPTION>
(Amounts in Thousands) Shares Value
<S> <C> <C>
United States -- Continued
Capital Cities/ABC, Inc. 1 $ 108
The Coca-Cola Company 2 134
ConAgra, Inc. 3 91
Consolidated Edison Company New
York, Inc. 4 109
Dover Corporation 1 51
Ford Motor Company 2 68
Hormel Foods Corporation 2 50
Integra Financial Corporation 1 49
International Business Machines
Corporation 1 86
Johnson & Johnson 1 68
Lincare Holdings, Inc. 1 37(A)
LSI Logic Corporation 2 94(A)
MBIA, Inc. 1 93
Mead Corporation 1 59
Medtronic, Inc. 1 39
Merck & Company, Inc. 3 127
Meridian Bancorp Incorporated 2 72
Mylan Laboratories 1 34
NBD Bancorp, Inc. 3 86
Nike, Inc. 1 76
Novellus Systems, Inc. N.M. 27(A)
Oryx Energy Company 4 54(A)
PPG Industries, Inc. 1 47
Scott Paper Company 2 84
Sonoco Products Company 2 55
The Kroger Co. 2 62(A)
Unicom Corporation 3 67
United Waste Systems, Inc. 1 36(A)
UST, Inc. 2 65
Williams Companies, Inc. 2 56
2,681
Total Common Stocks and Equity
Interests
(Identified Cost -- $25,579) 25,885
PREFERRED STOCK -- 0.2%
Germany -- 0.2%
Fresenius AG
(Identified Cost -- $59) N.M. 67
<CAPTION>
</TABLE>
8
<PAGE>
<TABLE>
<CAPTION>
Principal
(Amounts in Thousands) Amount Value
<S> <C> <C>
REPURCHASE AGREEMENTS -- 8.7%
Morgan Stanley & Co.,
Incorporated
6.1% dated 6-30-95, to be
repurchased at $2,103 on 7-5-95
(Collateral: $2,257 Federal
National Mortgage Association
Mortgage-backed securities,
5.5% due 1-1-00, value $2,147) $ 2,101 $ 2,101
State Street Bank and Trust
Company, N.A.
3.0% dated 6-30-95, to be
repurchased at $385 on 7-3-95
(Collateral: $370 U.S. Treasury
Bonds, 7.25% due 5/15/16, value
$396) 385 385
Total Repurchase Agreements
(Identified Cost -- $2,486) $ 2,486
Total Investments -- 99.6%
(Identified Cost -- $28,124) $28,438
Other Assets Less
Liabilities -- 0.4% 101
NET ASSETS -- 100.0% $28,539
</TABLE>
<TABLE>
<CAPTION>
(Amounts in Thousands)
<S> <C> <C>
NET ASSETS CONSISTING OF:
Accumulated paid-in capital
applicable to 2,745 shares
outstanding $28,151
Undistributed net investment
income 85
Undistributed net realized gain
on investments and currency
translations 53
Unrealized appreciation of
investments and currency
translations 250
NET ASSETS -- 100.0% $28,539
NET ASSET VALUE PER SHARE $ 10.40
</TABLE>
(A) NON-INCOME PRODUCING.
(B) RULE 144A SECURITY -- A SECURITY PURCHASED PURSUANT TO RULE 144A UNDER THE
SECURITIES ACT OF 1933 WHICH MAY NOT BE RESOLD SUBJECT TO THAT RULE EXCEPT
TO QUALIFIED INSTITUTIONAL BUYERS.
N.M. NOT MEANINGFUL.
SEE NOTES TO FINANCIAL STATEMENTS.
9
<PAGE>
STATEMENT OF OPERATIONS
LEGG MASON GLOBAL TRUST, INC.
GLOBAL EQUITY TRUST
<TABLE>
<CAPTION>
February 17, 1995(A)
to
June 30, 1995
(Unaudited)
<S> <C> <C>
INVESTMENT INCOME:
Dividends $162
Interest 69
Less foreign income tax expense (20)
$211
EXPENSES:
Management fee 42
Distribution and service fees 56
Custodian fee 59
Legal and audit fees 18
Transfer agent and shareholder servicing expense 13
Reports to shareholders 12
Registration fees 8
Directors' fees 2
Other expenses 5
215
Less fees waived and expenses reimbursed (89)
Total expenses, net of waivers and reimbursements 126
NET INVESTMENT INCOME 85
NET REALIZED AND UNREALIZED GAIN:
Realized gain:
Investments 30
Foreign currency translations 23
Unrealized appreciation (depreciation):
Investments 315
Assets and liabilities denominated in foreign currencies (65)
NET REALIZED AND UNREALIZED GAIN 303
INCREASE IN NET ASSETS RESULTING FROM OPERATIONS $388
</TABLE>
(A) COMMENCEMENT OF OPERATIONS.
SEE NOTES TO FINANCIAL STATEMENTS.
10
<PAGE>
STATEMENT OF CHANGES IN NET ASSETS
LEGG MASON GLOBAL TRUST , INC.
GLOBAL EQUITY TRUST
<TABLE>
<CAPTION>
February 17, 1995(A)
to
(Amounts in Thousands) June 30, 1995
(Unaudited)
<S> <C>
INCREASE IN NET ASSETS:
Net investment income $ 85
Net realized gain on investments and currency translations 53
Unrealized appreciation of investments and currency translations 250
Increase in net assets resulting from operations 388
Increase in net assets from Fund share transactions 28,150
Increase in net assets 28,538
NET ASSETS:
Beginning of period 1
End of period (including undistributed net investment income of $85) $ 28,539
</TABLE>
(A) COMMENCEMENT OF OPERATIONS.
SEE NOTES TO FINANCIAL STATEMENTS.
11
<PAGE>
FINANCIAL HIGHLIGHTS
LEGG MASON GLOBAL TRUST, INC.
GLOBAL EQUITY TRUST
Contained below is per share operating performance data for a share of
common stock outstanding, total investment return, ratios to average net
assets and other supplemental data. This information has been derived from
information provided in the financial statements.
<TABLE>
<CAPTION>
February 17, 1995(A)
to
June 30, 1995
(Unaudited)
<S> <C>
PER SHARE OPERATING PERFORMANCE:
Net asset value, beginning of period $10.00
Net investment income 0.03(B)
Net realized and unrealized gain on investments and currency translations 0.37
Total from investment operations 0.40
Net asset value, end of period $10.40
Total return 4.00%(C)
RATIOS/SUPPLEMENTAL DATA:
Ratio to average net assets:
Expenses 2.25%(B,D)
Net investment income 1.51%(B,D)
Portfolio turnover rate 28.17%(D)
Net assets, end of period (in thousands) $ 28,539
</TABLE>
(A) COMMENCEMENT OF OPERATIONS.
(B) NET OF FEES WAIVED AND EXPENSES REIMBURSED PURSUANT TO A VOLUNTARY
EXPENSE LIMITATION OF 2.25%.
(C) NOT ANNUALIZED.
(D) ANNUALIZED.
SEE NOTES TO FINANCIAL STATEMENTS.
12
<PAGE>
NOTES TO FINANCIAL STATEMENTS
LEGG MASON GLOBAL TRUST, INC.
GLOBAL EQUITY TRUST
(Amounts in Thousands) (Unaudited)
1. SIGNIFICANT ACCOUNTING POLICIES:
The Legg Mason Global Trust, Inc. ("Corporation"), consisting of the
Global Equity Trust ("Fund") and the Global Government Trust, is
registered under the Investment Company Act of 1940, as amended, as a
diversified, open-end management investment company. The financial
statements of the other portfolio of the Corporation is included in a
separate report to shareholders.
Security Valuation
All securities for which market quotations are readily available are
valued at the last sales price, or if no sales price is available at that
time, at the mean between the latest bid and asked prices. Securities that
are traded over-the-counter are valued at the mean between the latest bid
and asked prices. If market or bid and asked quotations are not available,
securities will be valued as determined in good faith by the Board of
Directors.
Currency Translations
The books and records of the Fund are maintained in U.S. dollars.
Foreign currency amounts are translated into U.S. dollars on the following
basis:
(i) market value of investment securities, assets and liabilities at
the closing daily rate of exchange, and
(ii) purchases and sales of investment securities, interest income and
expenses at the rate of exchange prevailing on the respective
date of such transactions.
The effect of changes in foreign exchange rates on realized and
unrealized security gains or losses is reflected as a component of such
gains or losses.
Investment Income and Dividends to Shareholders
Income and expenses are recorded on the accrual basis. Dividends are
declared and paid quarterly. Dividends payable are recorded on the
dividend ex-date.
Security Transactions
Security transactions are recorded on the trade date. Realized gains
and losses from security transactions are reported on an identified cost
basis.
Deferred Organizational Expense
Deferred organizational expenses of $71 are being amortized on a
straight-line basis over 5 years beginning on the date operations began.
Federal Income Taxes
No provision for federal income or excise taxes is required since the
Fund intends to qualify as a regulated investment company and distribute
all of its taxable income to its shareholders.
2. FINANCIAL INSTRUMENTS:
As part of the Fund's investment program, the Fund may utilize forward
currency exchange contracts and repurchase agreements. The nature and risk
of these financial instruments and the reasons for using them are set
forth more fully in the Fund's Prospectus and Statement of Additional
Information.
Emerging Markets
The Fund has investments in securities denominated in the currencies
of emerging market countries, as well as in securities issued by
governments of emerging market countries. Future economic or political
developments could adversely affect the liquidity and value of such
securities.
Repurchase Agreements
All repurchase agreements are fully collateralized by obligations
issued by the U.S. government or its agencies and such collateral is in
the possession of the Fund's custodian. The value of such collateral
includes accrued interest. Risks arise from the possible delay in recovery
or potential loss of rights in the collateral should the issuer of the
repurchase agreement fail financially.
Forward Currency Exchange Contracts
The Fund may enter into foreign forward currency exchange contracts to
hedge against adverse changes in the relationship of the U.S. dollar to
foreign currencies. Risks arise from the possible inability of
counterparties to meet the terms of their contracts and from movements in
currency values.
13
<PAGE>
NOTES TO FINANCIAL STATEMENTS -- CONTINUED
LEGG MASON GLOBAL TRUST, INC.
GLOBAL EQUITY TRUST
(Amounts in Thousands)
Forward currency contracts are valued using the forward rate. As of June
30, 1995 the Fund had entered into the following currency contracts:
<TABLE>
<CAPTION>
Settlement Unrealized
Contracts to Sell Date Gain/(Loss)
<C> <S> <C> <C>
255 Deutschmarks 08/18/95 $ (7)
220 Deutschmarks 09/14/95 (2)
699 French Francs 08/18/95 (6)
414 French Francs 08/24/95 (4)
11,604 Japanese Yen 08/22/95 (3)
23,602 Japanese Yen 08/24/95 *
68 Swiss Francs 08/24/95 (2)
70 Swiss Francs 09/14/95 *
$ (24)
<CAPTION>
Settlement Unrealized
Contracts to Buy Date Gain/(Loss)
<C> <S> <C> <C>
255 Deutschmarks 08/18/95 $ 3
220 Deutschmarks 09/14/95 3
699 French Francs 08/18/95 2
414 French Francs 08/24/95 2
11,604 Japanese Yen 08/22/95 1
23,602 Japanese Yen 08/24/95 (1)
68 Swiss Francs 08/24/95 *
70 Swiss Francs 09/14/95 (51)
$ (41)
</TABLE>
* LESS THAN A THOUSAND.
3. INVESTMENT TRANSACTIONS:
Investment transactions for the period ended June 30, 1995 (excluding
short-term securities) were as follows:
<TABLE>
<S> <C>
Purchases $ 27,434
Proceeds from sales 1,786
</TABLE>
At June 30, 1995, the cost of securities for federal income tax
purposes was $28,124. Aggregate gross unrealized appreciation for all
securities in which there was an excess of value over tax cost was $1,158
and aggregate gross unrealized depreciation for all securities in which
there was an excess of tax cost over value was $843.
4. FUND SHARE TRANSACTIONS:
At June 30, 1995, there were 1,000,000 shares authorized at $.001 par
value for all portfolios of the Corporation (including the Fund).
Transactions in Fund shares were as follows:
<TABLE>
<CAPTION>
February 17,
1995(|)
to
June 30, 1995
Shares Amount
<S> <C> <C>
Sold 2,799 $28,705
Repurchased (54 ) (555)
Net increase 2,745 $28,150
</TABLE>
(|)COMMENCEMENT OF OPERATIONS.
5. TRANSACTIONS WITH AFFILIATES:
The Fund has a management agreement with Legg Mason Fund Adviser, Inc.
("Manager"), a corporate affiliate of Legg Mason Wood Walker, Incorporated
("Legg Mason"), a member of the New York Stock Exchange and the
distributor for the Fund. Under this agreement, the Manager provides the
Fund with management and administrative services for which the Fund pays a
fee at an annual rate of 0.75% of average daily net assets of the Fund.
Legg Mason and the Adviser have voluntarily agreed to waive their fees and
to reimburse the Fund for its expenses (exclusive of taxes, interest,
brokerage and extraordinary expenses) to the extent necessary to limit
total operating expenses to 2.25%, until December 31, 1995. At June 30,
1995, management fees of $42 were waived.
Batterymarch Financial Management, Inc. ("Adviser"), a wholly owned
subsidiary of Legg Mason, Inc., serves as the Fund's adviser. The Adviser
is responsible for the actual investment activity of the Fund. The Manager
pays the Adviser a fee for its services at an annual rate equal to 67% of
the fee received by the Manager.
14
<PAGE>
Legg Mason, as distributor of the Fund, receives an annual
distribution fee of 0.75% and an annual service fee of 0.25% of the Fund's
average daily net assets, calculated daily and payable monthly. At June
30, 1995, distribution and service fees totalling $47 were waived and
distribution and service fees of $8 were payable to the distributor at
June 30, 1995. Legg Mason also has an agreement with the Fund's transfer
agent to assist with certain of its duties. For this assistance, Legg
Mason was paid $3 by the transfer agent for the period ended June
30, 1995.
15
