<PAGE>
DIMENSIONAL EMERGING MARKETS FUND INC.
ANNUAL REPORT
Year Ended November 30, 1995
<PAGE>
DIMENSIONAL EMERGING MARKETS FUND INC.
ANNUAL REPORT
Table of Contents
Page
Schedule of Investments...................................... 1
Statement of Assets and Liabilities.......................... 12
Statement of Operations...................................... 13
Statements of Changes in Net Assets.......................... 14
Financial Highlights......................................... 15
Notes to Financial Statements................................ 16
Description of the Fund's Dividend Reinvestment Plan......... 19
Report of Independent Accountants............................ 20
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
NOVEMBER 30, 1995
<TABLE>
<CAPTION>
Shares Value+
------ ------
<S> <C> <C>
BRAZIL - (13.1%)
COMMON STOCKS - (3.4%)
*Bancor BCO ........................... 6,300,000 $ 36,196
Embraco SA ............................ 342,000 212,422
Lojas Americanas SA ................... 6,762,000 140,000
Mannesmann ............................ 378,000 64,565
Souza Cruz Industria e Comercio Cruz .. 180,016 1,071,524
TELEBRAS Telecomunicacoes Brasilieras
SA ................................... 82,869,000 3,346,501
VSMA (Cia Vidraria Santa Marina) ...... 121,000 400,828
----------
TOTAL COMMON STOCKS (Cost $3,484,425) . 5,272,036
----------
PREFERRED STOCK - (9.7%)
Aracruz Celulose SA Series B .......... 1,265,999 2,280,371
Banco Bradesco SA ..................... 101,132,893 874,182
Banco Itau SA ......................... 3,312,000 956,571
*Banco do Brasil SA ................... 56,145,862 729,431
*Banco do Estado de Sao Paulo SA ...... 14,980,000 80,638
Brasmotor SA .......................... 2,015,570 423,562
Cervejaria Brahma ..................... 4,049,480 1,597,155
Cofap Cia Fabricadora de Pecas ........ 14,250 73,020
Duratex SA ............................ 4,510,000 193,286
Ericsson Telecomunicacoes SA .......... 20,194,770 77,351
IKPC Industrias Klabin de Papel e
Celulose SA .......................... 418,531 402,934
Investimentos Itau SA ................. 1,088,000 551,884
Lojas Americanas SA ................... 4,324,460 94,637
Multibras Eletrodomesticos SA ......... 427,145 380,274
Paranapanema SA ....................... 9,588,000 117,021
Sadia Concordia SA .................... 308,282 210,627
Siderurgica Belgo Mineira Issue 93 .... 2,181,754 142,288
Telecomunicacoes Brasileiras SA ....... 1,889,166 93,089
Usinas Siderurgicas de Minas Gerais SA 419,254,000 373,249
Vale do Rio Doce ...................... 29,893,000 4,858,386
White Martins SA ...................... 550,256,498 535,446
-----------
TOTAL PREFERRED STOCK (Cost $8,565,295) 15,045,402
-----------
TOTAL - BRAZIL (Cost $12,049,720) ..... 20,317,438
-----------
CHILE - (12.7%)
COMMON STOCKS - (12.4%)
Banco de Credito e Inversiones SA
Series A ............................. 53,304 431,116
Banmedica SA .......................... 347,000 119,800
CAP SA (Compania de Aceros del
Pacifico) ............................ 100,000 453,887
CMPC SA (Compania Manufacturera de
Papeles y Cartones) .................. 117,150 1,598,014
COPEC (Cia de Petroleos de Chile) ..... 757,488 3,419,852
CTI SA (Cia Tecno Industrial) ......... 4,900,000 272,091
Cervecerias Unidas SA ................. 143,000 611,116
Chilectra Generacion SA ............... 138,000 796,282
Chilectra SA .......................... 225,611 950,486
Consumidores de Gas de Santiago SA .... 103,000 467,504
Empresa Nacional de Electricidad SA ... 4,536,900 2,915,796
<PAGE>
DIMENSIONAL EMERGING MARKETS FUND INC.
CONTINUED
Shares Value+
------ ------
*Empresa Nacional de Telecomunicaciones
SA ................................... 49,000 449,541
Enersis SA ............................ 3,895,960 1,928,227
Forestal Terranova SA ................. 147,795 203,388
*Industrias Forestales Inforsa SA ..... 1,057,365 326,757
Invercap SA ........................... 100,000 147,272
Laboratorio Chile SA .................. 271,069 153,793
MADECO SA (Manufacturera de Cobre) .... 231,227 524,755
Maderas y Sinteticos SA ............... 357,062 198,272
Minera Mantos Blancos SA .............. 102,255 271,561
Sociedad Industrial Pizarreno SA ...... 63,000 121,680
Sociedad Quimica y Minera de Chile SA
Series A ............................. 36,000 159,923
Sud Americana de Vapores SA ........... 410,000 296,958
Telefonos de Chile SA Series A ........ 200,000 820,377
Telefonos de Chile SA Series B ........ 352,166 1,322,110
Vina Sta Carolina SA .................. 163,489 181,567
Vina de Concha y Toro SA .............. 350,000 116,610
----------
TOTAL COMMON STOCKS (Cost $13,449,815) 19,258,735
----------
INVESTMENT IN CURRENCY - (0.1%)
*Chilean Pesos (Cost $158,758) ........ 157,197
----------
PREFERRED STOCK - (0.2%)
Sociedad Quimica y Minera de Chile SA
Series B (Cost $232,337) ............. 77,090 329,429
----------
RIGHTS/WARRANTS - (0.0%)
*Sociedad Quimica y Minera de Chile SA
Series B Rights 12/07/95 (Cost $0) ... 19,308 3,356
----------
TOTAL - CHILE (Cost $13,840,910) ...... 19,748,717
----------
INDONESIA - (10.3%)
COMMON STOCKS - (10.3%)
PT Argo Pantes (Foreign) .............. 135,625 123,268
PT Astra International (Foreign) ...... 1,094,400 2,181,130
PT Berlian Laju Tanker (Foreign) ...... 166,000 54,534
PT Branta Mulia (Foreign) ............. 63,000 80,026
PT Charoen Pokphand Indonesia (Foreign) 84,000 169,251
PT Dankos Laboratories (Foreign) ...... 47,250 109,691
PT Gadjah Tunggal (Foreign) ........... 744,000 423,653
PT Hadtex Indosyntec (Foreign) ........ 144,000 75,690
PT Hanjaya Mandela Sampoerna (Foreign) 455,000 4,563,951
PT Hero Supermarket (Foreign) ......... 110,000 216,820
PT Indah Kiat Pulp & Paper Corp.
(Foreign) ............................ 1,661,313 1,200,686
PT Indocement Tunggai Prakarsa
(Foreign) ............................ 83,000 281,756
PT Indorama Synthetics (Foreign) ...... 148,700 455,935
PT Inti Indorayon Utama (Foreign) ..... 411,500 437,095
PT Jakarta International Hotel and
Development (Foreign) ................ 636,000 752,168
PT Japfa Comfeed Indonesia (Foreign) .. 124,000 62,462
PT Kabelmetal Indonesia (Foreign) ..... 90,000 77,858
PT Kalbe Farma (Foreign) .............. 204,800 650,372
<PAGE>
DIMENSIONAL EMERGING MARKETS FUND INC.
CONTINUED
Shares Value+
------ ------
PT Lippo Land Development (Foreign) ... 193,200 $ 126,938
PT Mayora Indah (Foreign) ............. 577,572 392,132
PT Modern Photo Film Co. (Foreign) .... 125,000 711,783
PT Pakuwon Jati (Foreign) ............. 198,000 140,933
PT Polysindo Eka Perkasa (Foreign) .... 1,032,000 621,551
PT Semen Cibinong (Foreign) ........... 106,200 251,196
PT Semen Gresik (Foreign) ............. 600,000 1,471,748
PT Summarecon Agung (Foreign) ......... 120,700 84,590
PT Surya Toto Indonesia (Foreign) ..... 46,400 95,523
PT Tigaraksa Satria (Foreign) ......... 38,000 123,171
PT Unggul Indah Corp. (Foreign) ....... 146,298 137,775
----------
TOTAL COMMON STOCKS (Cost $11,353,534) 16,073,686
----------
INVESTMENT IN CURRENCY - (0.0%)
*Indonesian Rupees (Cost $1) .......... 1
----------
TOTAL - INDONESIA (Cost $11,353,535) .. 16,073,687
----------
THAILAND - (10.2%)
COMMON STOCKS - (10.2%)
Advanced Info Service Public Co., Ltd.
(Foreign) ............................ 124,500 1,980,119
American Standard Sanitaryware
(Thailand) Public Co., Ltd. (Foreign) 4,150 70,954
Asia Securites Trading Public Co., Ltd.
(Foreign) ............................ 69,000 170,099
Ayudhya Insurance Public Co. Ltd.
(Foreign) ............................ 13,000 85,288
Bangkok Land Public Co., Ltd. (Foreign) 256,400 336,429
Bangkok Rubber Public Co., Ltd.
(Foreign) ............................ 40,000 21,471
Bangkok Steel Industry Public Co., Ltd.
(Foreign) ............................ 84,000 85,169
Bank of Asia Public Co., Ltd. (Foreign) 188,100 411,352
Bank of Ayudhya Public Co., Ltd.
(Foreign) ............................ 61,600 333,105
Banpu Public Co., Ltd. (Foreign) ...... 25,000 538,767
Charoen Pokphand Feedmill Public Co.,
Ltd. (Foreign) ....................... 8,100 37,360
Christiani & Nielsen (Thai) Public Co.,
Ltd. (Foreign) ....................... 32,000 40,080
First Bangkok City Bank Public Co.,
Ltd. (Foreign) ....................... 920,400 667,885
Kiatnakin Finance and Securities Public
Co., Ltd. (Foreign) .................. 36,000 92,326
Krung Thai Bank Public Co., Ltd.
(Foreign) ............................ 616,000 2,277,853
Land and House Public Co., Ltd.
(Foreign) ............................ 71,100 938,577
MK Real Estate Development Public Co.,
Ltd. (Foreign) ....................... 21,000 41,123
Modernform Group Public Co., Ltd.
(Foreign) ............................ 46,000 54,871
Naowarat Patanakarn Co., Ltd. ......... 6,400 26,720
*New Imperial Hotel Public Co., Ltd.
(Foreign) ............................ 32,000 26,083
*Padaeng Industry Public Co., Ltd.
(Foreign) ............................ 55,000 36,083
<PAGE>
DIMENSIONAL EMERGING MARKETS FUND INC.
CONTINUED
Shares Value+
------ ------
Post Publishing Public Co., Ltd.
(Foreign) ............................ 9,200 $ 39,507
Premier Enterprise Public Co., Ltd.
(Foreign) ............................ 32,000 51,849
Saha Pathana Inter-holding Public Co.,
Ltd. (Foreign) ....................... 25,400 47,215
Securities One Public Co., Ltd.
(Foreign) ............................ 69,000 559,682
Shangri-La Hotel Public Co., Ltd.
(Foreign) ............................ 108,000 85,885
Shinawatra Computer and Communications
Public Co., Ltd. (Foreign) ........... 102,800 2,387,086
Siam City Bank Public Co., Ltd.
(Foreign) ............................ 638,200 691,489
Siam City Cement Public Co., Ltd.
(Foreign) ............................ 90,600 1,224,812
Siam Commercial Bank Public Co., Ltd.
(Foreign) ............................ 1,000 11,769
Siam Pulp & Paper Co., Ltd. (Foreign) . 48,000 130,737
Sino-Thai Engineering and Construction
Public Co., Ltd. (Foreign) ........... 21,200 154,258
Srithai Superware Public Co., Ltd.
(Foreign) ............................ 21,000 141,948
TPI Polene Public Co., Ltd. (Foreign) . 129,125 713,653
Tanayong Public Co., Ltd. (Foreign) ... 163,800 200,272
Thai German Ceramic Industry Public
Co., Ltd. (Foreign) .................. 58,000 146,441
Thai Glass Industries Public Co., Ltd.
(Foreign) ............................ 60,000 250,497
Thai Military Bank Public Co., Ltd.
(Foreign) ............................ 204,000 713,797
*Thai Packaging and Printing Public
Co., Ltd. (Foreign) .................. 29,500 16,421
Thai Wah Public Co., Ltd. (Foreign) ... 21,000 25,885
*Unicord Public Co., Ltd. (Foreign) ... 85,000 12,505
----------
TOTAL COMMON STOCKS (Cost $10,659,728) 15,877,422
----------
RIGHTS/WARRANTS - (0.0%)
*Kiatnakin Finance and Securities
Public Co., Ltd. Warrants 03/30/00 ... 4,500 8,320
*TPI Polene Public Co., Ltd. (Foreign)
Rights 01/26/96 ...................... 6,456 33,114
----------
TOTAL RIGHTS/WARRANTS (Cost $0) ....... 41,434
----------
TOTAL - THAILAND (Cost $10,659,728) ... 15,918,856
----------
MALAYSIA - (9.7%)
COMMON STOCKS - (9.7%)
AMMB Holdings Berhad .................. 31,000 321,323
AMMB Holdings Berhad 7.50% Unsecured
Loan Stock 11/20/99 .................. 31,000 15,179
Amsteel Corp. Berhad .................. 99,000 67,238
*Amsteel Corp. Berhad Issue August 95 . 99,000 63,329
Aokam Perdana Berhad .................. 32,000 47,005
Asiatic Development Berhad ............ 117,000 110,879
Berjaya Leisure Berhad ................ 74,000 63,992
Berjaya Singer Berhad ................. 21,600 21,749
Commerce Asset-Holding Berhad ......... 38,000 184,561
DCB Holdings Berhad ................... 123,000 325,410
Edaran Otombil Nasional Berhad ........ 35,000 251,530
Ekran Berhad .......................... 42,000 97,848
<PAGE>
DIMENSIONAL EMERGING MARKETS FUND INC.
CONTINUED
Shares Value+
------ ------
Genting Berhad ........................ 112,500 $ 972,853
Golden Hope Plantations Berhad ........ 159,000 254,902
Guinness Anchor Berhad ................ 35,000 60,809
Highlands & Lowlands Berhad ........... 99,000 142,294
Hong Leong Credit Berhad .............. 56,499 225,327
Hong Leong Industries Berhad .......... 23,000 105,350
Hume Industries (Malaysia) Berhad ..... 57,000 256,584
Kamunting Corp. Berhad ................ 127,000 94,780
Kedah Cement Holdings Berhad .......... 41,000 66,701
Kuala Lumpur Kepong Berhad ............ 78,000 224,837
Leader Universal Holdings Berhad ...... 68,333 182,131
Lion Land Berhad ...................... 12,375 12,900
Magnum Corp. Berhad ................... 160,000 308,312
Malayan Banking Berhad ................ 187,000 1,484,186
Malayan Cement Berhad ................. 54,000 95,526
Malayan United Industries Berhad ...... 208,000 158,515
Malaysia Mining Corp. Berhad .......... 53,000 69,899
Malaysian Airlines System ............. 114,000 335,360
Malaysian Oxygen Berhad ............... 23,000 84,008
Nestle (Malaysia) Berhad .............. 38,000 267,088
New Straits Times Press (Malaysia)
Berhad ............................... 32,000 106,772
Nylex (Malaysia) Berhad ............... 17,000 51,017
Oriental Holdings Berhad .............. 24,000 112,774
Perusahaan Otomobil Nasional Berhad ... 81,000 273,465
RJ Reynolds Berhad .................... 43,000 97,631
Resorts World Berhad .................. 174,000 851,964
Rothmans of Pall Mall Malaysia Berhad . 46,000 346,930
Shell Refining Co. Federation of
Malaysia Berhad ...................... 48,000 145,943
Sime Darby Berhad (Malaysia) .......... 355,980 920,699
Sime UEP Properties Berhad ............ 66,000 105,287
Tan Chong Motor Holdings Berhad ....... 110,000 110,760
Telekom Malaysia Berhad ............... 325,000 2,425,469
Tenaga Nasional Berhad ................ 502,000 1,883,119
UMW Holdings Berhad ................... 39,666 93,194
United Engineers (Malaysia) Berhad .... 87,000 542,784
----------
TOTAL - MALAYSIA (Cost $10,697,257) ... 15,040,213
----------
ARGENTINA - (9.5%)
COMMON STOCKS - (9.5%)
*Acindar Industria Argentina de Aceros
SA Series A .......................... 161,067 100,717
*Alpargatas SA ........................ 275,000 116,933
Astra Cia Argentina de Petroleo SA .... 314,920 535,632
Bagley SA Series B .................... 109,649 241,348
Banco Frances del Rio de la Plata SA .. 102,934 895,974
Banco de Galicia y Buenos Aires SA
Series B ............................. 190,014 941,041
Buenos Aires Embotelladora SA Series B 250 313,907
*Celulosa Argentina SA Series B ....... 173,500 62,838
*Ciadea SA ............................ 102,210 439,724
*Comercial del Plata .................. 145,060 352,672
*Corcemar Corporacion Cementera
Argentina SA Series B ................ 29,106 128,130
*Indupa SA ............................ 438,400 267,558
Industrias Petroq Koppers ............. 25,800 103,768
*Irsa Inversiones y Representaciones SA 88,477 186,780
*Juan Minetti SA ...................... 24,000 76,838
<PAGE>
DIMENSIONAL EMERGING MARKETS FUND INC.
CONTINUED
Shares Value+
------ ------
Ledesma SA Agricola Industrial ........ 190,500 $ 219,185
Molinos Rio de la Plata SA Series B ... 61,102 473,777
Naviera Perez Companc SA Series B ..... 431,880 2,095,666
Nobleza Piccardo Sociedad Industrial
Comercial y Financeira ............... 44,200 172,466
*Sevel Argentina SA Series C .......... 92,476 152,661
Siderca SA Series A ................... 785,410 661,646
Telecom Argentina Stet-France SA
Series B ............................. 718,800 3,214,643
Telefonica de Argentina SA Series B ... 1,183,000 2,947,144
----------
TOTAL - ARGENTINA (Cost $13,092,210) .. 14,701,048
----------
ISRAEL - (9.0%)
COMMON STOCKS - (9.0%)
*Africa-Israel Investments, Ltd. ...... 300 367,435
*Africa-Israel Investments, Ltd. ...... 150 161,757
*Agis Industries (1983), Ltd. ......... 17,600 109,310
American Israeli Paper Mills, Ltd. .... 3,000 141,196
*Bank Hapoalim B.M. ................... 885,500 1,454,094
Bank Leumi Le-Israel .................. 947,250 1,244,396
*Bezek, Ltd. .......................... 473,000 1,353,494
*Blue Square Chain Stores Properties
Investment ........................... 16,000 110,194
*CLAL Electronics Industries, Ltd. .... 2,500 262,072
*CLAL Industries, Ltd. ................ 94,000 511,066
*CLAL Insurance Co., Ltd. ............. 27,000 131,607
*CLAL Israel, Ltd. .................... 21,400 527,467
*Delek Israel Fuel Corp., Ltd. Series C 7,000 196,300
Discount Investment Corp. ............. 6,570 375,639
Elbit, Ltd. ........................... 4,960 224,251
Elite Industries, Ltd. ................ 50,400 198,794
Elron Electronic Industries, Ltd. ..... 3,980 112,697
First International Bank of Israel .... 3,900 408,845
*IDB Bankholding Corp., Ltd. .......... 129,600 429,429
*IDB Development Corp. Series A ....... 31,500 530,685
*Israel Chemicals, Ltd. ............... 917,000 676,874
*Israel Corp. Series A ................ 4,000 286,879
Koor Industries, Ltd. ................. 9,345 843,794
*Makhteshim Chemicals Works, Ltd. ..... 41,000 230,378
*Matav Cable .......................... 16,000 116,958
Osem Investment, Ltd. ................. 54,656 345,854
*Property and Building Corp., Ltd. .... 3,000 184,645
Super-Sol, Ltd. Series A .............. 12,000 234,592
Tadiran Ltd. .......................... 83,549 305,909
*Tambour .............................. 40,000 107,046
Teva Pharmaceutical Industries, Ltd.
(Representing 100 Shares) ............ 4,605 1,904,891
----------
TOTAL - ISRAEL (Cost $15,170,705) ..... 14,088,548
----------
MEXICO - (8.2%)
COMMON STOCKS - (8.2%)
Alfa S.A. de C.V. Series A ............ 64,000 757,447
Apasco S.A. de C.V. ................... 48,000 194,681
Cementos de Mexico S.A. de C.V.
Series A ............................. 13,500 40,931
Cementos de Mexico S.A. de C.V.
Series B ............................. 358,000 1,152,074
Cifra S.A. de C.V. Series C ........... 1,053,000 1,111,811
*Controladora Comercial Mexicana SA
de C.V. .............................. 279,000 170,665
El Puerto de Liverpool S.A. Series 1 .. 20,000 10,638
El Puerto de Liverpool S.A. Series C-1 312,000 165,957
<PAGE>
DIMENSIONAL EMERGING MARKETS FUND INC.
CONTINUED
Shares Value+
------ ------
Empresas ICA Sociedad Controladora S.A.
de C.V. .............................. 56,000 $ 584,574
*Empresas la Moderna S.A. de C.V.
Series A ............................. 184,885 676,109
Fomento Economico Mexicano S.A. de C.V.
Series B ............................. 244,000 563,926
*Grupo Carso S.A. de C.V. Series A1 ... 252,000 1,400,745
Grupo Financiero Banamex Accival S.A.
de C.V. Series B ..................... 414,000 636,415
Grupo Financiero Banamex Accival S.A.
de C.V. Series L ..................... 28,085 39,961
*Grupo Financiero Bancomer S.A. de C.V.
Series B ............................. 790,000 218,511
*Grupo Financiero Bancomer S.A. de C.V.
Series L ............................. 29,259 7,081
*Grupo Financiero GBM Atlantico S.A. de
C.V. Series B ........................ 149,000 152,963
*Grupo Financiero GBM Atlantico S.A. de
C.V. Series L ........................ 980 871
Grupo Financiero Invermexico S.A. de
C.V. Series B ........................ 206,000 54,787
*Grupo Financiero Invermexico S.A. de
C.V. Series L ........................ 12,600 3,686
*Grupo Financiero Serfin S.A. de C.V.
Series B ............................. 214,000 130,904
*Grupo Gigante S.A. Series B .......... 392,000 71,415
Grupo Industrial Bimbo S.A. de C.V.
Series A ............................. 132,337 446,989
Grupo Televisa SA (representing 1 share
each Series A, Series D and Series L) 62,000 671,941
Kimberly Clark de Mexico S.A. de C.V.
Series A ............................. 72,000 947,872
Telefonos de Mexico S.A. Series L ..... 1,190,000 1,974,894
Tolmex S.A. de C.V. Series B2 ......... 40,000 162,234
Vitro S.A. ............................ 176,400 354,207
----------
TOTAL - MEXICO (Cost $17,915,304) 12,704,289
----------
TURKEY - (7.9%)
COMMON STOCKS - (7.9%)
Akbank ................................ 5,482,000 1,322,829
Akcimento ............................. 144,000 73,429
Aksa .................................. 1,951,479 533,094
Alarko Holding ........................ 498,086 185,955
Arcelik A.S. .......................... 5,563,687 547,149
Aygaz ................................. 670,602 335,851
Bekoteknik Sanayi A.S. ................ 1,333,280 103,195
Brisa Bridgestone Sabanci Lastik San &
Tic A.S. ............................. 1,323,000 337,316
Cimentas Izmir Cimento Fabrikasi Turk
A.S. ................................. 234,000 112,930
Cimsa Cimento Sanayii ve Ticaret A.S. . 312,000 156,256
Cukurova Elektrik A.S. ................ 559,000 356,310
Doktas ................................ 240,000 34,966
*Eczacibasi Ilac ...................... 1,890,810 127,408
Ege Biracilik ve Malt Sanayii A.S. .... 1,775,140 493,005
Erciyas Biracilik ..................... 992,640 524,250
Eregli Demir ve Celik Fabrikalari Turk
A.S. ................................. 7,837,500 706,531
<PAGE>
DIMENSIONAL EMERGING MARKETS FUND INC.
CONTINUED
Shares Value+
------ ------
Good Year Lastikleri A.S. ............. 661,500 $ 201,787
Guney Biracilik ....................... 478,500 78,428
*Hurriyet Gazete ...................... 2,194,000 73,919
Izmir Demir Celik ..................... 4,094,000 82,014
Koc Holding A.S. ...................... 3,727,706 590,622
Migros Turk A.S. ...................... 333,000 339,610
NETAS Northern Electric
Telekomunikayson A.S. ................ 1,292,000 341,176
*Otosan Otomobil A.S. ................. 1,644,000 308,381
Tat Konserve .......................... 500,000 291,386
Tofas Turk Otomobil Fabrikasi A.S. .... 5,333,000 602,160
Trakya Cam Sanayi A.S. ................ 3,642,336 358,197
Turcas Petrolculuk A.S. ............... 572,585 108,448
Turk Demir Dokum ...................... 1,859,989 213,402
Turk Siemens Kablo ve Elektrik Sanayii
A.S. ................................. 504,000 105,555
Turk Sise Cam ......................... 2,857,512 447,543
Turkiye Garanti Bankasi A.S. .......... 8,889,081 647,538
Turkiye Is Bankasi A.S. Series C ...... 7,033,000 576,370
Usas Ucak Servisi A.S. ................ 20,000 85,595
Yapi ve Kredi Bankasi A.S. ............ 15,966,628 959,568
----------
TOTAL - TURKEY (Cost $12,911,155) ..... 12,362,173
----------
PORTUGAL - (7.3%)
COMMON STOCKS - (7.3%)
Banco Comercial Portugues SA .......... 200,900 2,632,254
Banco Totta & Acores SA ............... 59,070 953,308
*Cel-Cat Fabrica Nacional de Condutores
Electricos SA ........................ 3,300 47,921
Corticeira Amorim Sociedad Gestora
Participacoes Sociais SA ............. 37,100 392,305
Empresa Fabril de Maquinos Electricas . 13,600 120,201
Estabelecimentos Jeronimo Martins &
Filho SGPS ........................... 34,300 1,856,502
Filmes Lusomundo SA ................... 7,612 92,198
*Lusotur Sociedad Financeira de Turismo
SA ................................... 13,266 290,714
Mague-Gestao e Participacoes SA ....... 11,800 218,086
Modelo Continente SGPS SA ............. 17,000 422,475
Mota e Companhia SA ................... 15,700 331,824
*Portugal Telecom SA .................. 65,232 1,193,121
Salvador Caetano Industrias
Metalurgicas e Veiculos de Transporte
SA ................................... 12,768 172,600
Soares da Costa SA .................... 23,710 292,345
Sonae Investimentos Sociedad Gestore de
Participacoes Sociais SA ............. 72,100 1,522,904
Uniceruniao Cervejeira SA ............. 50,600 783,215
----------
TOTAL - PORTUGAL (Cost $10,745,557) ... 11,321,973
----------
UNITED STATES - (0.0%)
COMMON STOCKS - (0.0%)
Turkiye Garanti Bankasi A.S. ADR
(Representing 200 Shares) (Cost
$77,023) ............................. 4,000 28,000
----------
</TABLE>
<PAGE>
DIMENSIONAL EMERGING MARKETS FUND INC.
CONTINUED
<TABLE>
<CAPTION>
Face
Amount
(000) Value+
------ ------
<S> <C> <C>
TEMPORARY CASH INVESTMENTS - (2.1%)
Repurchase Agreement, PNC Securities Corp. 5.70%, 12/01/95 (Collateralized by U.S.
Treasury Notes 6.50%, 05/15/97) (Cost $3,224,000) ....................................... $3,224 3,224,000
------------
TOTAL INVESTMENTS - (100.0%) (Cost $131,737,104) ......................................... $155,528,942
============
</TABLE>
+See Note B to Financial Statements.
*Non-Income Producing Securities
<PAGE>
DIMENSIONAL EMERGING MARKETS FUND INC.
STATEMENT OF ASSETS AND LIABILITIES
NOVEMBER 30, 1995
(Amounts in thousands, except share amounts)
ASSETS:
Investments at Value (Cost of $131,737) ............... $ 155,529
Cash .................................................. 14
Receivable for Dividends and Interest ................. 244
Receivable for Investment Securities Sold ............. 1,409
Other Assets .......................................... 117
---------
Total Assets .................................... 157,313
---------
LIABILITIES:
Chilean Withholding Tax ............................... 169
Accrued Expenses ...................................... 90
---------
Total Liabilities ............................... 259
---------
NET ASSETS applicable to 10,634,736 shares outstanding
$.01 par value shares (authorized 200,000,000 shares) ......... $ 157,054
=========
NET ASSET VALUE ................................................ $ 14.77
=========
PUBLIC OFFERING PRICE PER SHARE ................................ $ 14.99
=========
NET ASSETS CONSIST OF:
Paid-In Capital ....................................... $ 130,612
Undistributed Net Investment Income ................... 82
Undistributed Net Realized Gain ....................... 2,615
Accumulated Net Realized Foreign
Exchange Loss ........................................ (19)
Unrealized Net Foreign Exchange Loss .................. (28)
Unrealized Appreciation of Investment
Securities and Foreign Currency ...................... 23,792
---------
Total Net Assets ................................ $ 157,054
=========
See accompanying Notes to Financial Statements
12
<PAGE>
DIMENSIONAL EMERGING MARKETS FUND INC.
STATEMENT OF OPERATIONS
FOR THE YEAR ENDED
NOVEMBER 30, 1995
(Amounts in thousands)
<TABLE>
Investment Income
<S> <C>
Dividends (Net of Foreign Taxes Withheld of $353)............................ $ 3,636
Interest..................................................................... 283
-------------
Total Investment Income.................................................. 3,919
-------------
Expenses
Investment Advisory Services ................................................ 733
Accounting & Transfer Agent Fees ............................................ 147
Custodian's Fee ............................................................. 423
Legal Fees .................................................................. 16
Audit Fees................................................................... 11
Directors' Fees and Expenses ................................................ 16
Organization Costs........................................................... 50
Other ................................................................... 37
-------------
Total Expenses .......................................................... 1,433
Less: Fee Waived............................................................. (586)
-------------
Net Expenses................................................................. 847
-------------
Net Investment Income ...................................................... 3,072
-------------
Net Realized and Unrealized Gain (Loss) on
Investments and Foreign Currency
Net Realized Gain on Investment Securities........................................ 2,731
Net Realized Loss on Foreign
Currency Transactions............................................................ (19)
Change in Unrealized Appreciation (Depreciation) of:
Investment Securities and Foreign Currency ...................................... (26,817)
Translation of Foreign Currency Denominated
Amounts ........................................................................ (8)
-------------
Net Loss on Investment Securities and
Foreign Currency............................................................ (24,113)
-------------
Resulting from Operations.................................................... ($21,041)
=============
</TABLE>
See accompanying Notes to Financial Statements
13
<PAGE>
DIMENSIONAL EMERGING MARKETS FUND INC.
STATEMENTS OF CHANGES IN NET ASSETS
(Amounts in thousands)
<TABLE>
<CAPTION>
Year Year
Ended Ended
Nov. 30, Nov. 30,
1995 1994
----------- ----------
<S> <C> <C>
Increase (Decrease) in Net Assets
Operations:
Net Investment Income ................................................. $ 3,072 $ 1,876
Net Realized Gain on Investment Securities.............................. 2,731 257
Net Realized Loss on Foreign Currency
Transactions........................................................... (19) (205)
Change in Unrealized Appreciation (Depreciation) of:
Investment Securities and Foreign Currency............................ (26,817) 16,976
Translation of Foreign Currency Denominated
Amounts.............................................................. (8) (41)
-------- --------
Net Increase (Decrease) in Net Assets
Resulting from Operations............................................ (21,041) 18,863
-------- --------
Distributions From:
Net Investment Income .................................................. (3,002) (1,753)
Net Realized Gain....................................................... (319) (80)
-------- --------
Total Distributions.................................................... (3,321) (1,833)
-------- --------
Capital Share Transactions (1):
Shares Issued........................................................... 25,000 -
Shares Issued in Lieu of Cash Distributions............................. 3,321 1,833
-------- --------
Net Increase From Capital Share Transactions........................... 28,321 1,833
-------- --------
Total Increase ........................................................ 3,959 18,863
Net Assets
Beginning of Period..................................................... 153,095 134,232
-------- --------
End of Period........................................................... $157,054 $153,095
======== ========
(1) Share Amounts:
Shares Issued........................................................... 1,460 -
Shares Issued in Lieu of Cash Distribution.............................. 223 107
-------- --------
1,683 107
======== ========
</TABLE>
See accompanying Notes to Financial Statements
14
<PAGE>
DIMENSIONAL EMERGING MARKETS FUND INC.
FINANCIAL HIGHLIGHTS
(for a share outstanding throughout each period)
<TABLE>
<CAPTION>
Year Year
Ended Ended February 2
Nov. 30, Nov. 30, to Nov. 30
1995 1994 1993
----------- --------- ---------
<S> <C> <C> <C>
Net Asset Value, Beginning of Period.................................. $17.10 $15.18 $10.00
-------- ------- -------
Income from Investment Operations
Net Investment Income........................................... 0.28 0.19 0.16
Net Gains on Securities (Realized and
Unrealized).................................................. (2.29) 1.94 5.53
-------- ------- -------
Total from Investment Operations......................... (2.01) 2.13 5.69
-------- ------- -------
Effect of Capital Changes - - (0.46)
- ------------------------- -------- ------- -------
Less Distributions
Net Investment Income........................................... (0.29) (0.20) (0.05)
Net Realized Gain............................................... (0.03) (0.01) -
-------- ------- -------
Total Distributions..................................... (0.32) (0.21) (0.05)
-------- ------- -------
Net Asset Value, End of Period....................................... $14.77 $17.10 $15.18
======== ======= =======
Total Investment Return (a).......................................... (11.73)% 14.02% 52.32%(#)
Net Assets, End of Period (thousands)................................. $157,054 $153,095 $134,232
Ratio of Expenses to Average Net Assets.............................. 0.58%(b) 0.80%(b) 0.73%(*)
Ratio of Net Investment Income to
Average Net Assets................................................... 2.10%(b) 1.18%(b) 1.59%(*)
Portfolio Turnover Rate............................................... 5.73% 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 ratios of expenses to average
net assets for the years ended November 30, 1995 and 1994 would have been
0.98% and 0.88%, respectively, and the ratios of net investment income to
average net assets for the years ended November 30, 1995 and 1994 would
have been 1.70% and 1.10%, respectively.
See accompanying Notes to Financial Statements
15
<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 underthe 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 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 the difference 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.
16
<PAGE>
5. 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. For the year ended November 30, 1995, the fund paid the
Advisor a fee based on an annual effective rate of 0.50% of average net assets.
The Advisor has agreed to waive 80% of its advisory fee to keep it 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 year ended November 30, 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.................................... $32,782
Sales ....................................... 8,262
E. Investment Transactions:
At November 30, 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 ............. $39,531
Gross Unrealized Depreciation.............. (15,739)
--------
Net ...................................... $ 23,792
========
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.
17
<PAGE>
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
August 31............... 983 0.10 759 0.06 (4,952) (0.42) (4,193) (0.36)
November 30............. 778 0.07 569 0.03 (13,641) (1.25) (13,072) (1.22)
-------- ----- ------ ----- -------- ------ -------- ------
Totals.................. $3,919 $0.41 $3,072 $0.28 $ (24,113) $(2.29) $(21,041) $(2.01)
======== ===== ====== ===== ========= ====== ======== ======
Per Per Per Per
1994 Total Share Total Share Total Share Total Share
- ---------------------------------- ----- ----- ----- ----- ----- ----- ----- -----
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>
18
<PAGE>
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.
19
<PAGE>
REPORT OF INDEPENDENT ACCOUNTANTS
To the Shareholders and Board of Directors of
Dimensional Emerging Markets Fund Inc.:
We have audited the accompanying statement of assets and liabilities, including
the schedule of investments, of the Dimensional Emerging Markets Fund Inc. as of
November 30, 1995, and the related statement of operations for the year ended,
the statements of changes in net assets for each of the two years in the period
then ended, and the financial highlights for each of the periods presented.
These financial statements and financial highlights are the responsibility of
the Fund's management. Our responsibility is to express an opinion on these
financial statements and financial highlights based on our audits.
We conducted our audits in accordance with generally accepted auditing
standards. Those standards require that we plan and perform the audit to obtain
reasonable assurance about whether the financial statements and financial
highlights are free of material misstatement. An audit includes examining, on a
test basis, evidence supporting the amounts and disclosures in the financial
statements. Our procedures included confirmation of investments owned as of
November 30, 1995, by correspondence with the custodian. An audit also includes
assessing the accounting principles used and significant estimates made by
management, as well as evaluating the overall financial statement presentation.
We believe that our audits provide a reasonable basis for our opinion.
In our opinion, the financial statements and financial highlights referred to
above present fairly, in all material respects, the financial position of the
Dimensional Emerging Markets Fund Inc. as of November 30, 1995, and the results
of its operations for the year then ended, the changes in its net assets for
each of the two years in the period then ended, and its financial highlights for
each of the periods presented, in conformity with generally accepted accounting
principles.
COOPERS & LYBRAND L.L.P.
2400 Eleven Penn Center
Philadelphia, Pennsylvania
January 19, 1996
20
