<PAGE>
===========================================================================
DIMENSIONAL EMERGING MARKETS FUND INC.
SEMI-ANNUAL REPORT
SIX MONTHS ENDED MAY 31, 1995
(UNAUDITED)
===========================================================================
<PAGE>
DIMENSIONAL EMERGING MARKETS FUND INC.
SEMI-ANNUAL REPORT
(UNAUDITED)
TABLE OF CONTENTS
Page
-------
Schedule of Investments. ........................... 1-10
Statement of Assets and Liabilities ................ 11
Statement of Operations ............................ 12
Statements of Changes in Net Assets ................ 13
Financial Highlights ............................... 14
Notes to Financial Statements ...................... 15-17
Description of the Fund's Dividend Reinvestment Plan 18
This report is submitted for the information of the Fund's shareholders. It
is not authorized for distribution to prospective investors unless preceded
or accompanied by an effective prospectus.
<PAGE>
DIMENSIONAL EMERGING MARKETS FUND INC.
SCHEDULE OF INVESTMENTS
(UNAUDITED)
MAY 31, 1995
<TABLE>
<CAPTION>
Shares Value+
------------------ ------------------
<S> <C> <C>
CHILE - (16.7%)
COMMON STOCKS - (16.4%)
Banco de Credito e Inversiones SA Series A ................ 50,304 $ 373,611
Banmedica SA .............................................. 347,000 157,393
CAP SA (Compania de Aceros del Pacifico) .................. 100,000 679,045
CMPC SA (Compania Manufacturera de Papeles y Cartones) .... 117,150 2,128,588
COPEC (Cia de Petroleos de Chile) ......................... 757,488 4,440,447
CTI SA (Cia Tecno Industrial) ............................. 4,900,000 362,626
Cervecerias Unidas SA ..................................... 93,000 488,435
Chilectra Generacion SA ................................... 138,000 1,134,748
Chilectra SA .............................................. 225,611 1,184,907
Consumidores de Gas de Santiago SA ........................ 103,000 877,003
Empresa Nacional de Electricidad SA ....................... 4,308,900 3,613,990
Empresa Nacional de Telecomunicaciones SA ................. 49,000 438,011
Enersis SA ................................................ 3,895,960 2,237,335
Forestal Terranova SA ..................................... 147,795 303,823
*Industrias Forestales Inforsa SA .......................... 1,057,365 370,218
Invercap SA ............................................... 100,000 206,631
Laboratorio Chile SA ...................................... 225,069 253,725
MADECO SA (Manufacturera de Cobre) ........................ 231,227 686,934
Maderas y Sinteticos SA ................................... 357,062 223,992
Minera Mantos Blancos SA .................................. 102,255 301,069
Sociedad Industrial Pizarreno SA .......................... 63,000 147,056
*Sociedad Quimica y Minera de Chile SA Series A ............ 28,000 118,833
Sud Americana de Vapores SA ............................... 410,000 309,947
Telefonos de Chile SA Series A ............................ 200,000 1,015,915
Telefonos de Chile SA Series B ............................ 352,166 1,718,794
Vina Sta Carolina SA ...................................... 163,489 177,800
Vina de Concha y Toro SA .................................. 350,000 153,183
------------------
TOTAL COMMON STOCKS (Cost $12,988,851) .................... 24,104,059
------------------
INVESTMENT IN CURRENCY - (0.1%)
*Chilean Pesos (Cost $173,124) ............................. 71,001 188,332
------------------
PREFERRED STOCK - (0.2%)
*Sociedad Quimica y Minera de Chile SA Series B (Cost
$232,337) ................................................. 77,090 325,128
------------------
TOTAL - CHILE (Cost $13,394,312) .......................... 24,617,519
------------------
1
<PAGE>
DIMENSIONAL EMERGING MARKETS FUND INC.
CONTINUED
Shares Value+
------------------ ------------------
BRAZIL - (14.1%)
COMMON STOCKS - (3.5%)
Bancor BCO ................................................ 6,300,000 $ 37,897
Embraco SA ................................................ 342,000 264,238
Lojas Americanas SA ....................................... 6,762,000 150,764
Mannesmann ................................................ 378,000 116,821
Souza Cruz Industria e Comercio Cruz ...................... 180,016 1,239,845
TELEBRAS Telecomunicacoes Brasilieras SA .................. 82,869,000 2,808,033
VSMA (Cia Vidraria Santa Marina) .......................... 121,000 487,472
------------------
TOTAL COMMON STOCKS (Cost $3,484,425) ..................... 5,105,070
------------------
PREFERRED STOCK - (10.6%)
Aracruz Celulose SA Series B .............................. 1,265,999 2,920,461
Banco Bradesco SA ......................................... 99,339,028 904,577
Banco Itau SA ............................................. 3,312,000 987,020
*Banco do Brasil SA ........................................ 56,145,862 687,880
Banco do Estado de Sao Paulo SA ........................... 14,980,000 99,205
Brasmotor SA .............................................. 2,015,570 430,166
Cervejaria Brahma ......................................... 3,976,399 1,285,966
*Cervejaria Brahma Issue 95 ................................ 68,558 15,541
Cofap Cia Fabricadora de Pecas ............................ 14,250,000 141,556
Duratex SA ................................................ 4,510,000 248,896
Ericsson Telecomunicacoes SA .............................. 20,194,770 109,444
IKPC Industrias Klabin de Papel e Celulose SA ............. 334,825 451
Investimentos Itau SA ..................................... 1,088,000 600,442
Lojas Americanas SA ....................................... 4,324,460 98,804
Multibras Eletrodomesticos SA ............................. 427,145 334,738
Paranapanema SA ........................................... 9,588,000 160,647
Sadia Concordia SA ........................................ 308,282 311,685
Siderurgica Belgo Mineira Issue 93 ........................ 2,181,754 217,284
Telecomunicacoes Brasileiras SA ........................... 1,889,166 65,891
Usinas Siderurgicas de Minas Gerais SA .................... 419,254,000 522,911
Vale do Rio Doce .......................................... 29,893,000 4,916,178
White Martins SA .......................................... 550,256,498 510,172
------------------
TOTAL PREFERRED STOCK (Cost $8,550,962) ................... 15,569,915
------------------
TOTAL - BRAZIL (Cost $12,035,387) ......................... 20,674,985
------------------
2
<PAGE>
DIMENSIONAL EMERGING MARKETS FUND INC.
CONTINUED
Shares Value+
------------------ ------------------
THAILAND - (13.9%)
COMMON STOCKS - (13.8%)
Advanced Info Service Public Co., Ltd. (Foreign) .......... 124,500 $1,902,927
American Standard Sanitaryware (Thailand) Public Co., Ltd.
(Foreign) ................................................. 4,150 66,636
Asia Securites Trading Public Co., Ltd. (Foreign) ......... 69,000 246,829
Ayudhya Insurance Public Co. Ltd. (Foreign) ............... 13,000 98,293
Bangkok Land Public Co., Ltd. (Foreign) ................... 256,400 541,984
Bangkok Rubber Public Co., Ltd. (Foreign) ................. 40,000 37,805
Bangkok Steel Industry Public Co., Ltd. (Foreign) ......... 42,000 66,585
Bank of Asia Public Co., Ltd. (Foreign) ................... 188,100 523,774
Bank of Ayudhya Public Co., Ltd. (Foreign) ................ 61,600 330,537
Banpu Public Co., Ltd. (Foreign) .......................... 25,000 552,845
CMIC Finance and Securities Public Co., Ltd. (Foreign) .... 138,000 555,366
Charoen Pokphand Feedmill Public Co., Ltd. (Foreign) ...... 8,100 51,366
Christiani & Nielsen (Thai) Public Co., Ltd. (Foreign) .... 32,000 107,967
Dhana Siam Finance and Securities Public Co., Ltd.
(Foreign) ................................................. 128,000 749,268
First Bangkok City Bank Public Co., Ltd. (Foreign) ........ 920,400 841,829
Kiatnakin Finance and Securities Public Co., Ltd. (Foreign) 36,000 162,439
Krung Thai Bank Public Co., Ltd. (Foreign) ................ 616,000 2,303,740
Land and House Public Co., Ltd. (Foreign) ................. 71,100 1,219,683
MK Real Estate Development Public Co., Ltd. (Foreign) ..... 21,000 70,000
Modernform Group Public Co., Ltd. (Foreign) ............... 46,000 86,016
*Naowarat Patanakarn Co., Ltd. ............................. 6,400 15,610
Nava Finance and Securities Public Co., Ltd. (Foreign) .... 120,000 419,512
*New Imperial Hotel Public Co., Ltd. (Foreign) ............. 32,000 30,894
*Padaeng Industry Public Co., Ltd. (Foreign) ............... 55,000 77,134
Post Publishing Public Co., Ltd. (Foreign) ................ 9,200 55,350
Premier Enterprise Public Co., Ltd. (Foreign) ............. 32,000 69,593
Saha Pathana Inter-holding Public Co., Ltd. (Foreign) ..... 25,400 52,142
Securities One Public Co., Ltd. (Foreign) ................. 69,000 701,219
Shangri-La Hotel Public Co., Ltd. (Foreign) ............... 108,000 87,805
Shinawatra Computer and Communications Public Co., Ltd.
(Foreign) ................................................. 102,800 2,774,764
Siam City Bank Public Co., Ltd. (Foreign) ................. 638,200 706,949
Siam City Cement Public Co., Ltd. (Foreign) ............... 90,600 1,554,195
3
<PAGE>
DIMENSIONAL EMERGING MARKETS FUND INC.
CONTINUED
Shares Value+
------------------ ------------------
Siam Commercial Bank Public Co., Ltd. (Foreign) ........... 1,000 $ 8,618
Siam Pulp & Paper Co., Ltd. (Foreign) ..................... 48,000 160,000
Sino-Thai Engineering and Construction Public Co., Ltd.
(Foreign) ................................................. 21,200 249,919
*Srithai Superware Public Co., Ltd. (Foreign) .............. 21,000 163,049
TPI Polene Public Co., Ltd. (Foreign) ..................... 129,125 881,829
Tanayong Public Co., Ltd. (Foreign) ....................... 163,800 346,244
Thai German Ceramic Industry Public Co., Ltd. (Foreign) ... 58,000 185,081
Thai Glass Industries Public Co., Ltd. (Foreign) .......... 60,000 262,195
Thai Military Bank Public Co., Ltd. (Foreign) ............. 204,000 746,341
*Thai Packaging and Printing Public Co., Ltd. (Foreign) .... 29,500 26,382
Thai Wah Public Co., Ltd. (Foreign) ....................... 21,000 29,878
*Unicord Public Co., Ltd. (Foreign) ........................ 85,000 20,732
Union Asia Finance Public Co., Ltd. ....................... 10,000 56,504
Union Asia Finance Public Co., Ltd. (Foreign) ............. 33,000 186,463
------------------
TOTAL COMMON STOCKS (Cost $11,835,675) .................... 20,384,291
------------------
INVESTMENT IN CURRENCY - (0.0%)
*Thailand Baht (Cost $255) ................................ 260
------------------
RIGHTS/WARRANTS - (0.1%)
*CMIC Finance and Securities Public Co., Ltd. (Foreign)
Rights .................................................... 23,000 76,199
Kiatnakin Finance and Securities Public Co., Ltd. (Foreign)
Rights .................................................... 3,600 0
------------------
TOTAL RIGHTS/WARRANTS (Cost $0) ........................... 76,199
------------------
TOTAL - THAILAND (Cost $11,835,930) ....................... 20,460,750
------------------
MALAYSIA - (11.3%)
COMMON STOCKS - (11.3%)
AMMB Holdings Berhad ...................................... 31,000 415,516
AMMB Holdings Berhad 7.50% Unsecured Loan Stock 11/20/99 .. 31,000 18,257
Amsteel Corp. Berhad ...................................... 99,000 141,543
Aokam Perdana Berhad ...................................... 21,000 58,428
Asiatic Development Berhad ................................ 117,000 134,963
Berjaya Leisure Berhad .................................... 43,000 36,677
4
<PAGE>
DIMENSIONAL EMERGING MARKETS FUND INC.
CONTINUED
Shares Value+
------------------ ------------------
Berjaya Singer Berhad ..................................... 21,600 $ 25,443
Commerce Asset-Holding Berhad ............................. 26,000 142,567
DCB Holdings Berhad ....................................... 123,000 369,699
Edaran Otombil Nasional Berhad ............................ 35,000 319,862
Ekran Berhad .............................................. 30,000 99,309
Genting Berhad ............................................ 112,500 1,210,906
Golden Hope Plantations Berhad ............................ 159,000 302,242
Guinness Anchor Berhad .................................... 35,000 63,688
Highlands & Lowlands Berhad ............................... 68,000 133,127
Hong Leong Credit Berhad .................................. 49,499 267,399
Hong Leong Industries Berhad .............................. 23,000 141,064
Hume Industries (Malaysia) Berhad ......................... 57,000 326,442
Kamunting Corp. Berhad .................................... 127,000 106,779
Kedah Cement Holdings Berhad .............................. 41,000 59,618
Kuala Lumpur Kepong Berhad ................................ 56,000 181,966
Leader Universal Holdings Berhad .......................... 68,333 256,734
*Lion Land Berhad .......................................... 12,375 14,928
Magnum Corp. Berhad ....................................... 160,000 386,677
Malayan Banking Berhad .................................... 183,000 1,516,328
Malayan Cement Berhad ..................................... 39,000 61,779
Malayan United Industries Berhad .......................... 104,000 183,331
Malaysia Mining Corp. Berhad .............................. 53,000 96,011
Malaysian Airlines System ................................. 56,000 194,476
Malaysian Oxygen Berhad ................................... 15,000 56,661
Nestle (Malaysia) Berhad .................................. 38,000 299,431
New Straits Times Press (Malaysia) Berhad ................. 32,000 105,930
Nylex (Malaysia) Berhad ................................... 17,000 50,061
Oriental Holdings Berhad .................................. 17,000 93,907
Perusahaan Otomobil Nasional Berhad ....................... 81,000 312,551
RJ Reynolds Berhad ........................................ 29,000 56,775
Resorts World Berhad ...................................... 174,000 1,194,395
Rothmans of Pall Mall Malaysia Berhad ..................... 46,000 366,206
Shell Refining Co. Federation of Malaysia Berhad .......... 48,000 163,769
Sime Darby Berhad (Malaysia) .............................. 355,980 1,026,587
Sime UEP Properties Berhad ................................ 66,000 132,965
Tan Chong Motor Holdings Berhad ........................... 79,000 90,808
Telekom Malaysia Berhad ................................... 318,000 2,609,098
Tenaga Nasional Berhad .................................... 481,000 2,051,381
UMW Holdings Berhad ....................................... 39,666 111,973
United Engineers (Malaysia) Berhad ........................ 87,000 583,063
------------------
TOTAL COMMON STOCKS (Cost $9,889,132) ..................... 16,571,320
------------------
5
<PAGE>
DIMENSIONAL EMERGING MARKETS FUND INC.
CONTINUED
Shares Value+
------------------ ------------------
INVESTMENT IN CURRENCY - (0.0%)
*Malaysian Ringetts (Cost $60,568) ......................... $ 63,549
------------------
TOTAL - MALAYSIA (Cost $9,949,700) ........................ 16,634,869
------------------
TURKEY - (10.6%)
COMMON STOCKS - (10.6%)
Akbank .................................................... 2,890,000 806,512
*Akbank Issue 94 ........................................... 1,445,000 394,855
*Akcimento ................................................. 48,000 83,721
Aksa ...................................................... 641,280 663,650
Alarko Holding ............................................ 228,480 188,629
*Arcelik A.S. .............................................. 3,112,265 959,012
Aygaz ..................................................... 670,602 467,862
Bekoteknik Sanayi A.S. .................................... 372,000 62,288
Brisa Bridgestone Sabanci Lastik San & Tic A.S. ........... 1,323,000 461,512
Cimentas Izmir Cimento Fabrikasi Turk A.S. ................ 234,000 185,023
*Cimsa Cimento Sanayii ve Ticaret A.S. ..................... 50,000 290,698
Cukurova Elektrik A.S. .................................... 559,000 191,750
*Doktas .................................................... 150,000 66,279
Eczacibasi Ilac ........................................... 1,050,450 244,291
*Ege Biracilik ve Malt Sanayii A.S. ........................ 771,800 987,186
*Erciyas Biracilik ......................................... 374,400 565,953
Eregli Demir ve Celik Fabrikalari Turk A.S. ............... 7,837,500 1,130,058
Good Year Lastikleri A.S. ................................. 661,500 346,134
*Guney Biracilik ........................................... 217,500 111,279
*Koc Holding A.S. .......................................... 1,242,569 1,069,187
*Migros Turk A.S. .......................................... 50,000 174,419
NETAS Northern Electric Telekomunikayson A.S. ............. 495,000 175,552
Otosan Otomobil A.S. ...................................... 1,096,000 369,581
*Tat Konserve .............................................. 200,000 153,488
*Tofas Turk Otomobil Fabrikasi A.S. ........................ 980,000 763,488
Trakya Cam Sanayi A.S. .................................... 1,517,640 271,763
*Trayka Cam Sanayii Issue 94 ............................... 1,517,640 236,469
Turcas Petrolculuk A.S. ................................... 572,585 173,107
Turk Demir Dokum .......................................... 1,115,995 311,440
Turk Siemens Kablo ve Elektrik Sanayii A.S. ............... 504,000 155,302
Turk Sise Cam ............................................. 2,857,512 714,378
Turkiye Garanti Bankasi A.S. .............................. 3,902,488 1,021,000
Turkiye Is Bankasi A.S. Series C .......................... 4,560,000 890,791
Usas Ucak Servisi A.S. .................................... 20,000 132,558
6
<PAGE>
DIMENSIONAL EMERGING MARKETS FUND INC.
CONTINUED
Shares Value+
------------------ ------------------
Yapi ve Kredi Bankasi A.S. ................................ 5,605,740 $ 808,269
------------------
TOTAL - TURKEY (Cost $10,258,222) ......................... 15,627,484
------------------
ARGENTINA - (9.3%) ........................................
COMMON STOCKS - (9.3%) ....................................
*Acindar Industria Argentina de Aceros SA Series A ......... 161,067 99,872
*Alpargatas SA ............................................. 187,000 86,029
Astra Cia Argentina de Petroleo SA ........................ 254,800 587,373
Bagley SA Series B ........................................ 94,649 229,073
Banco Frances del Rio de la Plata SA ...................... 92,934 641,309
Banco de Galicia y Buenos Aires SA Series B ............... 151,029 634,385
Buenos Aires Embotelladora SA Series B .................... 250 372,537
*Celulosa Argentina SA Series B ............................ 73,500 23,596
*Ciadea SA ................................................. 60,908 316,752
Comercial del Plata ....................................... 129,060 329,136
*Corcemar Corporacion Cementera Argentina SA Series B ...... 29,106 140,247
*Indupa SA ................................................. 84,400 41,867
*Industrias Petroq Koppers ................................. 16,800 78,632
Ledesma SA Agricola Industrial ............................ 160,500 186,199
Molinos Rio de la Plata SA Series B ....................... 50,102 298,137
Naviera Perez Companc SA Series B ......................... 431,880 1,930,697
Nobleza Piccardo Sociedad Industrial Comercial y Financeira 37,200 154,395
*Sevel Argentina SA Series C ............................... 92,476 186,449
Siderca SA Series A ....................................... 685,410 514,109
Telecom Argentina Stet-France SA Series B ................. 718,800 3,608,737
Telefonica de Argentina SA Series B ....................... 1,183,000 3,289,069
------------------
TOTAL - ARGENTINA (Cost $11,890,138) ...................... 13,748,600
------------------
INDONESIA - (9.1%)
COMMON STOCKS - (9.1%)
*PT Argo Pantes (Foreign) .................................. 135,625 158,412
PT Astra International (Foreign) .......................... 1,094,400 294,987
PT Berlian Laju Tanker (Foreign) .......................... 166,000 67,116
PT Branta Mulia (Foreign) ................................. 63,000 99,057
PT Charoen Pokphand Indonesia (Foreign) ................... 84,000 166,981
PT Dankos Laboratories (Foreign) .......................... 47,250 148,585
*PT Gadjah Tunggal (Foreign) ............................... 372,000 405,256
*PT Hadtex Indosyntec (Foreign) ............................ 88,000 64,241
*PT Hanjaya Mandela Sampoerna (Foreign) .................... 455,000 3,577,044
*PT Hero Supermarket (Foreign) ............................. 110,000 216,195
7
<PAGE>
DIMENSIONAL EMERGING MARKETS FUND INC.
CONTINUED
Shares Value+
------------------ ------------------
PT Indah Kiat Pulp & Paper Corp. (Foreign) ................ 1,461,600 $ 1,969,811
PT Indorama Synthetics (Foreign) .......................... 127,500 370,873
*PT Inti Indorayon Utama (Foreign) ......................... 411,500 882,710
*PT Jakarta International Hotel and Development (Foreign) .. 636,000 728,571
*PT Japfa Comfeed Indonesia (Foreign) ...................... 124,000 100,270
*PT Kabelmetal Indonesia (Foreign) ......................... 90,000 132,412
PT Kalbe Farma (Foreign) .................................. 204,800 828,032
PT Lippo Land Development (Foreign) ....................... 193,200 199,623
*PT Mayorah Indah (Foreign) ................................ 96,262 387,037
PT Modern Photo Film Co. (Foreign) ........................ 125,000 692,105
*PT Pakuwon Jati (Foreign) ................................. 198,000 126,752
PT Polysindo Eka Perkasa (Foreign) ........................ 1,032,000 579,515
PT Semen Cibinong (Foreign) ............................... 106,200 202,763
PT Semen Gresik (Foreign) ................................. 150,000 603,100
PT Summarecon Agung (Foreign) ............................. 47,700 42,857
*PT Surya Toto Indonesia (Foreign) ......................... 46,400 86,505
PT Tigaraksa Satria (Foreign) ............................. 38,000 107,547
PT Unggul Indah Corp. (Foreign) ........................... 132,999 126,516
------------------
TOTAL COMMON STOCKS (Cost $10,266,718) .................... 13,364,873
------------------
RIGHTS/WARRANTS - (0.0%) ..................................
*PT Indorama Synthetics (Foreign) Rights 07/07/95 (Cost $0) . 21,250 17,183
------------------
TOTAL - INDONESIA (Cost $10,266,718) ...................... 13,382,056
------------------
PORTUGAL - (9.0%)
COMMON STOCKS - (9.0%)
Banco Comercial Portugues SA .............................. 176,600 2,349,919
Banco Internacional de Credito ............................ 22,000 332,661
Banco Portugues de Investimentos SA ....................... 67,050 1,230,151
Banco Totta & Acores SA ................................... 59,070 1,290,171
Cel-Cat Fabrica Nacional de Condutores Electricos SA ...... 3,300 78,730
Corticeira Amorim Sociedad Gestora Participacoes Sociais SA 26,000 400,134
Empresa Fabril de Maquinos Electricas ..................... 13,600 162,688
Filmes Lusomundo SA ....................................... 7,612 89,523
Jeronimo Martins & Filho Administracao e Participacoes
Financeiros SA ............................................ 22,800 1,146,129
*Lusotur Sociedad Financeira de Turismo SA ................. 9,266 194,598
8
<PAGE>
DIMENSIONAL EMERGING MARKETS FUND INC.
CONTINUED
Shares Value+
------------------ ------------------
Mague-Gestao e Participacoes SA ........................... 6,600 $ 182,742
Modelo Continente SGPS SA ................................. 17,000 1,562,332
Modelo Sociedad Gestora de Participacoes Sociais SGPS SA .. 16,300 565,242
Mota e Companhia SA ....................................... 10,300 215,276
Portuguesa Radio Marconi SA ............................... 28,100 1,171,778
Salvador Caetano Industrias Metalurgicas e Veiculos de
Transporte SA ............................................. 11,400 208,962
Soares da Costa SA ........................................ 16,510 318,494
Sonae Investimentos Sociedad Gestore de Participacoes
Sociais SA ................................................ 45,400 1,104,489
Uniceruniao Cervejeira SA ................................. 38,000 648,656
------------------
TOTAL - PORTUGAL (Cost $9,585,927) ........................ 13,252,675
------------------
MEXICO - (6.0%)
COMMON STOCKS - (6.0%)
Alfa S.A. de C.V. Series A ................................ 43,000 497,637
*Apasco S.A. de C.V. ....................................... 48,000 166,650
Cementos de Mexico S.A. de C.V. Series A .................. 13,500 43,218
Cementos de Mexico S.A. de C.V. Series B .................. 284,000 944,352
Cifra S.A. de C.V. Series C ............................... 818,000 1,045,333
*Controladora Comercial Mexicana SA de C.V. ................ 229,000 126,911
El Puerto de Liverpool S.A. Series 1 ...................... 20,000 11,508
El Puerto de Liverpool S.A. Series C-1 .................... 212,000 127,856
Empresas ICA Sociedad Controladora S.A. de C.V. ........... 26,000 192,404
*Empresas la Moderna S.A. de C.V. Series A ................. 112,885 370,763
Fomento Economico Mexicano S.A. de C.V. Series B .......... 134,000 321,076
*Grupo Carso S.A. de C.V. Series A1 ........................ 206,000 1,024,124
Grupo Financiero Banamex Accival S.A. de C.V. Series B .... 274,000 406,422
Grupo Financiero Banamex Accival S.A. de C.V. Series L .... 13,700 20,544
*Grupo Financiero Bancomer S.A. de C.V. Series B ........... 790,000 171,263
*Grupo Financiero Bancomer S.A. de C.V. Series L ........... 29,259 6,200
*Grupo Financiero GBM Atlantico S.A. de C.V. Series C ...... 14,000 26,015
*Grupo Financiero GBM Atlantico S.A. de C.V. Series L . ..... 980 623
Grupo Financiero Invermexico S.A. de C.V. Series B ........ 126,000 49,291
*Grupo Financiero Invermexico S.A. de C.V. Series L ........ 12,600 4,929
*Grupo Financiero Serfin S.A. de C.V. Series B ............. 64,000 43,293
*Grupo Gigante S.A. Series B ............................... 192,000 35,990
Grupo Industrial Bimbo S.A. de C.V. Series A .............. 82,337 289,891
Grupo Televisa SA (representing 1 share each Series A,
Series D and Series L) .................................... 56,000 492,910
Kimberly Clark de Mexico S.A. de C.V. Series A ............ 49,000 511,165
Telefonos de Mexico S.A. Series L ......................... 1,010,000 1,531,051
Tolmex S.A. de C.V. Series B2 ............................. 30,000 122,249
Vitro S.A. ................................................ 86,400 250,961
------------------
TOTAL - MEXICO (Cost $13,754,754) ......................... 8,834,629
------------------
UNITED STATES - (0.0%)
COMMON STOCKS - (0.0%)
*Turk Garanti Bankasi A.S. American Depository Receipts
(Cost $74,225) ............................................ 20,000 42,500
------------------
TOTAL INVESTMENTS - (100.0%) (Cost $103,045,313) .......... $147,276,067
==================
</TABLE>
+ See Note B to Financial Statements.
* Non-Income Producing Securities
9
<PAGE>
DIMENSIONAL EMERGING MARKETS FUND INC.
STATEMENT OF ASSETS AND LIABILITIES
MAY 31, 1995
(UNAUDITED)
(AMOUNTS IN THOUSANDS, EXCEPT SHARE AMOUNTS)
<TABLE>
<CAPTION>
ASSETS:
<S> <C>
Investments at Value (Cost of $103,045) ................................... $147,276
Cash ..................................................................... 1,718
Receivable for Dividends and Interest .................................... 1,040
Other Assets ............................................................. 45
--------
Total Assets ............................................................. 150,079
--------
LIABILITIES: .............................................................
Payable for Investment Securities Purchased. ............................. 446
Accrued Expenses ......................................................... 314
--------
Total Liabilities ........................................................ 760
--------
NET ASSETS applicable to 8,983,540 shares outstanding $.01 par value
shares (authorized 200,000,000 shares) .................................. $149,319
--------
NET ASSET VALUE .......................................................... $ 16.62
--------
PUBLIC OFFERING PRICE PER SHARE .......................................... $ 16.87
--------
NET ASSETS CONSIST OF: ...................................................
Paid-In Capital .......................................................... $102,792
Undistributed Net Investment Income ...................................... 1,470
Undistributed Net Realized Gain .......................................... 872
Accumulated Net Realized Foreign Exchange Loss ........................... (26)
Unrealized Net Foreign Exchange Loss ..................................... (20)
Unrealized Appreciation of Investment Securities and Foreign Currency .... 44,231
--------
Total Net Assets ......................................................... $149,319
========
</TABLE>
See accompanying Notes to Financial Statements
10
<PAGE>
DIMENSIONAL EMERGING MARKETS FUND INC.
STATEMENT OF OPERATIONS
FOR THE SIX MONTHS ENDED
MAY 31, 1995
(UNAUDITED)
(AMOUNTS IN THOUSANDS)
<TABLE>
<CAPTION>
<S> <C>
Investment Income
Dividends (Net of Foreign Taxes Withheld of $202) .............................. $ 2,105
Interest ....................................................................... 53
-------
Total Investment Income ........................................................ 2,158
-------
Expenses
Investment Advisory Services ................................................... 338
Accounting & Transfer Agent Fees ............................................... 68
Custodian's Fee ................................................................ 195
Legal Fees ..................................................................... 13
Audit Fees ..................................................................... 10
Directors' Fees and Expenses ................................................... 14
Organization Costs. ............................................................ 25
Other .......................................................................... 22
-------
Total Expenses ................................................................. 685
Less: Fee Waived. .............................................................. (271)
-------
Net Expenses. .................................................................. 414
-------
Net Investment Income .......................................................... 1,744
-------
Net Realized and Unrealized Gain (Loss) on
Investments and Foreign Currency
Net Realized Gain on Investment Securities ..................................... 884
Net Realized Loss on Foreign Currency Transactions ............................. (26)
Change in Unrealized Appreciation (Depreciation) of: Investment Securities and
Foreign Currency .............................................................. (6,378)
Translation of Foreign Currency Denominated Amounts ............................ -
-------
Net Loss on Investment Securities and Foreign Currency ......................... ( 5,520)
-------
Net Decrease in Net Assets Resulting from Operations ........................... $(3,776)
=======
</TABLE>
See accompanying Notes to Financial Statements
11
<PAGE>
DIMENSIONAL EMERGING MARKETS FUND INC.
STATEMENTS OF CHANGES IN NET ASSETS
(AMOUNTS IN THOUSANDS)
<TABLE>
<CAPTION>
Six Months Year
Ended Ended
May 31, Nov. 30,
1995 1994
------------- ----------
(Unaudited)
<S> <C> <C>
Increase (Decrease) in Net Assets
Operations:
Net Investment Income ........................................ $ 1,744 $ 1,876
Net Realized Gain on Investment Securities ................... 884 257
Net Realized Loss on Foreign Currency Transactions ........... (26) (205)
Change in Unrealized Appreciation (Depreciation) of:
Investment Securities and Foreign Currency .................. (6,378) 16,976
Translation of Foreign Currency Denominated Amounts. ......... - (41)
------------- ----------
Net Increase (Decrease) in Net Assets Resulting from
Operations .................................................. (3,776) 18,863
------------- ----------
Distributions From:
Net Investment Income ........................................ (286) (1,753)
Net Realized Gain ............................................ (215) (80)
------------- ----------
Total Distributions .......................................... (501) (1,833)
------------- ----------
Capital Share Transactions (1):
Shares Issued ................................................ -- --
Shares Issued in Lieu of Cash Distributions .................. 501 1,833
------------- ----------
Net Increase From Capital Share Transactions ................. 501 1,833
------------- ----------
Total Increase (Decrease) .................................... (3,776) 18,863
Net Assets
Beginning of Period .......................................... 153,095 134,232
------------- ----------
End of Period ................................................ $ 149,319 $153,095
============ ==========
(1) Share Amounts:
Shares Issued ................................................ -- --
Shares Issued in Lieu of Cash Distribution ................... 32 107
------------- ----------
32 107
============= ==========
</TABLE>
See accompanying Notes to Financial Statements
12
<PAGE>
DIMENSIONAL EMERGING MARKETS FUND INC.
FINANCIAL HIGHLIGHTS
(FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD)
<TABLE>
<CAPTION>
Six Months Year
Ended Ended February 2
May 31, Nov. 30, to Nov. 30
1995 1994 1993
------------- ------------ ------------
(Unaudited)
<S> <C> <C> <C>
Net Asset Value, Beginning of Period ............. $ 17.10 $ 15.18 $10.00
--------- -------- --------
Income from Investment Operations
- ---------------------------------
Net Investment Income .......................... 0.19 0.19 0.16
Net Gains on Securities (Realized and
Unrealized) ................................. (0.62) 1.94 5.53
--------- -------- --------
Total from Investment Operations ................. (0.43) 2.13 5.69
--------- -------- --------
Effective of Capital Changes ..................... -- -- (0.46)
- ---------------------------- --------- -------- --------
Less Distributions
- ------------------
Net Investment Income .......................... (0.03) (0.20) (0.05)
Net Realized Gain .............................. (0.02) (0.01) --
--------- -------- --------
Total Distributions ........................ (0.05) (0.21) (0.05)
--------- -------- --------
Net Asset Value, End of Period ................... $ 16.62 $17.10 $15.18
========= ======== ========
Total Investment Return (a) ...................... (2.46)%(#) 14.02% 52.32%(#)
Net Assets, End of Period (thousands) ............ $149,319 $153,095 $134,232
Ratio of Expenses to Average Net Assets .......... 0.61%(*)(b) 0.80%(b) 0.73%(*)
Ratio of Net Investment Income to Average Net
Assets .......................................... 2.59%(*)(b) 1.18%(b) 1.59%(*)
Portfolio Turnover Rate .......................... 3.77%* 0.26% 0.28%(*)
</TABLE>
- ------
(*) Annualized
(#) Non-annualized
(a) Based on per share net asset value. Per share market price is not readily
determinable since fund shares are currently only sold at a public
offering price.
(b) Had certain waivers not been in effect, the annualized ratios of expenses
to average net assets for the periods ended May 31, 1995 and November 30,
1994 would have been 1.02% and 0.88%, respectively, and the ratios of net
investment income to average net assets for the periods ended May 31, 1995
and November 30, 1994 would have been 2.18% and 1.10%, respectively.
See accompanying Notes to Financial Statements
13
<PAGE>
DIMENSIONAL EMERGING MARKETS FUND INC.
NOTES TO FINANCIAL STATEMENTS
A. ORGANIZATION:
Dimensional Emerging Markets Fund Inc. (the Fund") is a closed-end
management investment company registered under the Investment Company Act of
1940, as amended.
B. SIGNIFICANT ACCOUNTING POLICIES:
The following significant accounting policies are in conformity with
generally accepted accounting principles for investment companies. Such
policies are consistently followed by the Fund in preparation of its
financial statements.
1. Security Valuation: Securities held by the Fund which are traded on a
stock exchange are valued at the closing price of the exchange on which such
securities are primarily traded, as of the close of business on the last
business day of the month on which the New York Stock Exchange is open for
regular trading, or in the absence of any volume, at the current bid price.
Securities that are traded in the OTC market, are valued at the current bid
price in the OTC market at the time of valuation. Securities for which market
quotations are not readily available (including restricted securities which
are subject to limitations as to their sale) are valued at fair value as
determined in good faith or under the authority of the Board of Directors.
2. Foreign Currency Translations: Securities and other assets and liabilities
of the Fund whose values are initially expressed in foreign currencies are
translated to U.S. dollars at the bid price of such currency against U.S.
dollars last quoted by a major bank. Dividend and interest income and certain
expenses are translated to U.S. dollars at the ratio of exchange on their
respective accrual dates. Receivables and payables denominated in foreign
currencies are marked to market based on daily exchange rates and exchange
gains or losses are realized upon ultimate receipt or disbursement.
The Fund does not generally isolate the effect of fluctuations in foreign
exchange rates from the effect of fluctuations in the market prices of
securities held whether realized or unrealized.
Realized gains or losses on foreign currency transactions represent net
foreign exchange gains or losses from the disposition of foreign currencies,
currency gains or losses realized between the trade and settlement dates on
securities transactions, and between amounts of interest, dividends and
foreign withholding taxes recorded on the Fund s books and the U.S. dollar
equivalent amounts actually received or paid.
3. Federal Income Taxes: It is the Fund's intention to continue to qualify as
a regulated investment company and distribute all of its taxable income.
Accordingly, no provisions for Federal income tax is required in the
financial statements.
4. Repurchase Agreements: The Fund may purchase money market instruments from
financial institutions, such as banks and non-bank dealers, subject to the
seller's agreement to repurchase them at an agreed upon date and price. The
seller will be required on a daily basis to maintain the value of the
collateral subject to the agreement at not less than the repurchase price
(including accrued interest). The agreements are conditioned upon the
collateral being deposited under the Federal Reserve book-entry system or
with the Fund's custodian. If the seller defaults and the value of the
collateral declines or if bankruptcy proceedings are commenced with respect
to the seller of the security, realization of the collateral by the Fund may
be subject to legal proceedings.
5. Reclassifications: As of December 1, 1993, The Fund implemented AICPA
Statement of Position 93-2 - Determination, Disclosure and Financial
Statement Presentation of Income, Capital Gain, and Return of Capital
Distributions by Investment Companies. Adoption of this standard results in
the reclassification to paid-in capital of permanent differences between tax
and financial reporting of net investment income and net realized
gain/(loss). The change has had no material effect on paid-in capital or
other components of net assets at December 1, 1993. Distributions to
shareholders and net asset values were not affected by this change.
14
<PAGE>
6. Other: Security transactions are accounted for on the date the securities
are purchased or sold. Costs used in determining realized gains and losses on
the sale of investment securities are those of specific securities sold.
Dividend income and distributions to shareholders are recorded on the
ex-dividend date. Interest income is recorded on the accrual basis. Costs
incurred by the Fund in connection with its organization are being amortized
on a straight-line basis over a five year period beginning at the
commencement of operations of the Fund.
Some countries require governmental approval for the repatriation of
investment income, capital or the proceeds of sales of foreign investors. In
addition, if there is a deterioration in a country's balance of payments or
for other reasons, a country may impose temporary restrictions on foreign
capital remittances abroad. Amounts repatriated prior to the end of specified
periods may be subject to taxes as specified in the Fund's prospectus.
The emerging countries' securities markets are substantially smaller, less
liquid and more volatile than the major securities markets in the United
States. Consequently, acquisition and disposition of securities by the Fund
may be inhibited.
C. INVESTMENT ADVISOR:
Dimensional Fund Advisors Inc. (the Advisor") provides investment advisory
services to the Fund under terms of a contract. For the period from December
1, 1993 to February 28, 1994, the Fund paid the Advisor a fee based on an
annual effective rate of 0.10% of average net assets. Effective March 1, 1994
the Fund paid the Advisor a fee based on an annual effective rate of 0.50% of
average net assets. Additionally at that time, the Advisor agreed to waive
80% of its advisory fees to keep the Advisory fee at an annual rate of 0.10%
of average net assets.
An investment committee of the Advisor approves all investment decisions
made by the Fund.
Certain officers of the Fund are also officers, directors and shareholders
of the Advisor.
D. PURCHASES AND SALES OF SECURITIES:
For the six months ended May 31, 1995, the Fund made the following
purchases and sales of investment securities other than U.S. Government
securities and temporary cash investments (amounts in thousands):
Purchases........................ $3,367
Sales .......................... 2,543
E. INVESTMENT TRANSACTIONS:
At May 31, 1995 gross unrealized appreciation and depreciation for
financial reporting and Federal income tax purposes of investment securities
and foreign currencies were as follows (amounts in thousands):
Gross Unrealized Appreciation....................... $ 55,361
Gross Unrealized Depreciation....................... (11,130)
--------
Net ............................................... $ 44,231
========
15
<PAGE>
F. REIMBURSEMENT FEES:
Shares of the Fund are sold at a public offering price which is equal to
the current net asset value plus a reimbursement fee of 1.5% of such net
asset value. Reimbursement fees are recorded as an addition to paid in
capital.
G. QUARTERLY RESULTS OF OPERATIONS (UNAUDITED):
(AMOUNTS SHOWN IN THOUSANDS EXCEPT PER SHARE DATA)
<TABLE>
<CAPTION>
Net Realized
and Unrealized
Gain (Loss) on Net Increase
Investment and (Decrease)
Total Foreign Currency In Net Assets
Investment Net Investment Denominated Resulting From
Income Income (Loss) Transactions Operations
------------------- ------------------- -------------------------- ------------------------
Per Per Per Per
1995 Total Share Total Share Total Share Total Share
-------------- -------- ------- -------- ------- ----------- ----------- ----------- ---------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
February 28 ... $ 777 $0.09 $ 558 $0.06 $(29,216) $(3.25) $(28,658) $(3.19)
May 31 ....... 1,381 0.15 1,186 0.13 23,696 2.63 24,882 2.76
------ ----- ------ ----- -------- ------ -------- ------
Totals ....... $2,158 $0.24 $1,744 $0.19 $ (5,520) $(0.62) $ (3,776) $(0.43)
</TABLE>
<TABLE>
<CAPTION>
Per Per Per Per
1994 Total Share Total Share Total Share Total Share
-------------- -------- ------- -------- ------- ---------- -------- ---------- --------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
February 28 ... $ 524 $0.06 $ 210 $0.02 $ 15,504 $ 1.75 $ 15,714 $ 1.77
May 31 ....... 1,465 0.16 1,201 0.13 (13,233) (1.50) (12,032) (1.37)
August 31 .... 612 0.07 396 0.03 20,015 2.27 20,412 2.30
November 30 ... 304 0.04 69 0.01 (5,299) (0.58) (5,231) (0.57)
------ ----- ------ ----- -------- ------ -------- ------
Totals ....... $2,905 $0.33 $1,876 $0.19 $ 16,987 $ 1.94 $ 18,863 $ 2.13
</TABLE>
DESCRIPTION OF THE FUND'S DIVIDEND REINVESTMENT PLAN
The Fund will, from time to time, distribute dividends and realized net
capital gains to shareholders. The Fund intends to distribute to shareholders
annually substantially all of its investment company taxable income.
Investment company taxable income includes all of the Fund's taxable income
minus the excess, if any, of its net realized long-term capital gains over
its net realized short-term capital losses (including any capital loss
carryovers), plus or minus certain other required adjustments. The Fund will
determine annually whether to distribute any net realized long-term capital
gains in excess of net realized short-term capital losses (including any
capital loss carryovers), although it currently expects to do so.
Shareholders will receive all distributions in additional Shares issued by
the Fund for this purpose priced at net asset value, unless a shareholder
elects to receive dividends and/or distributions by wire transfer when
requested or in cash paid by check in U.S. Dollars mailed directly to the
shareholder by PFPC Inc., the paying agent. Shareholders must make such
election in writing sent to the Fund's dividend paying agent, c/o PFPC Inc.,
P.O. Box 8950, Wilmington, DE 19809. Cash dividends and distributions paid to
these shareholders will be reduced by the amount of any foreign taxes
incurred with respect to remittances to pay such cash dividends or
distributions.
The receipt of dividends and distributions in Shares will not relieve
participants of any income tax or withholding tax that may be payable on such
dividends or distributions.
16
