DIMENSIONAL EMERGING MARKETS FUND INC.
SEMI-ANNUAL
REPORT
Six Months Ended May 31, 1996
(Unaudited)
<PAGE>
DIMENSIONAL EMERGING MARKETS FUND INC.
SEMI-ANNUAL REPORT
(Unaudited)
Table of Contents
Page
Schedule of Investments.............................................. 1
Statement of Assets and Liabilities.................................. 13
Statement of Operations.............................................. 14
Statements of Changes in Net Assets.................................. 15
Financial Highlights................................................. 16
Notes to Financial Statements........................................ 17
Description of the Fund's Dividend Reinvestment Plan................. 19
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>
DIMENSTIONAL EMERGING MARKETS FUND INC.
SCHEDULE OF INVESTMENTS
(UNAUDITED)
<TABLE>
<CAPTION>
SHARES VALUE+
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<S> <C> <C>
BRAZIL -- (13.1%)
COMMON STOCKS -- (3.5%)
*Banco do Estado de Sao Paulo SA .. 6,300,000 $ 22,094
Embraco SA ....................... 342,000 188,477
Lojas Americanas SA .............. 6,762,000 117,217
*Mannesmann SA .................... 378,000 48,102
Souza Cruz Industria e Comercio .. 180,016 1,289,694
Telecomunicacoes Brasileiras SA .. 82,869,000 4,135,146
VSMA (Cia Vidraria Santa Marina) . 121,000 448,597
--------------
TOTAL COMMON STOCKS
(Cost $3,484,424) ............... 6,249,327
--------------
PREFERRED STOCK -- (9.7%)
Aracruz Celulose SA Series B ..... 1,265,999 2,270,680
Banco Bradesco SA ................ 103,497,583 1,202,978
Banco Itau SA .................... 3,312,000 1,342,389
Banco do Brasil SA ............... 56,145,862 509,138
*Banco do Estado de Sao Paulo SA .. 14,980,000 52,535
Belgo Mineira .................... 2,181,754 126,795
Brasmotor SA ..................... 2,015,570 543,275
*COFAP (Cia Fabricadora De Pecas) . 14,250 80,674
Cervejaria Brahma ................ 4,049,480 2,414,269
Duratex SA ....................... 4,510,000 201,097
Ericsson Telecomunicacoes SA ..... 20,194,770 224,611
IKPC Industrias Klabin de Papel e
Celulose SA .................... 418,531 457,113
Investimentos Itau SA ............ 1,088,000 806,733
Lojas Americanas SA .............. 4,324,460 81,506
Multibras Eletrodomesticos SA .... 427,145 496,481
Paranapanema SA .................. 9,588,000 96,072
Sadia Concordia SA ............... 308,282 219,319
Telecomunicacoes Brasileiras SA .. 1,889,166 122,190
USIMINAS (Usinas Siderurgicas de
Minas Gerais SA) ............... 419,254,000 457,903
Vale do Rio Doce ................. 239,144 5,020,109
White Martins SA ................. 550,256,498 722,281
--------------
TOTAL PREFERRED STOCK
(Cost $8,582,082) ............... 17,448,148
--------------
RIGHTS/WARRANTS -- (0.0%)
*Telecomunicacoes Brasileiras SA
Common Rights 06/12/96 ......... 3,094,430 0
*Telecomunicacoes Brasileiras SA
Preferred Rights 06/12/96 ...... 70,543 0
--------------
TOTAL RIGHTS/WARRANTS (Cost $0) .. 0
--------------
TOTAL -- BRAZIL (Cost $12,066,506) .. 23,697,475
--------------
CHILE -- (11.4%)
COMMON STOCKS -- (10.8%)
Banco de Credito e Inversiones SA
Series A ....................... 53,304 476,162
Banmedica SA ..................... 347,000 127,386
CAP SA (Compania de Aceros del
Pacifico) ...................... 100,000 386,686
CIT Cia Tecno Industrial SA ...... 4,900,000 230,250
COPEC (Cia de Petroleos de Chile) 757,488 2,901,294
Cervecerias Unidas SA ............ 143,000 621,242
Chilectra Generacion SA .......... 138,000 797,063
Chilectra SA ..................... 225,611 1,148,485
Cia de Consumidores de Gas de
Santiago SA .................... 103,000 468,869
Compania Manufacturera de Papeles
y Cartones SA .................. 117,150 1,318,869
Compania de Sud Americana de
Vapores SA ..................... 410,000 326,114
Compania de Telecomunicaciones de
Chile SA Series A .............. 200,000 1,047,479
Compania de Telecomunicaciones de
Chile SA Series B .............. 352,166 1,758,244
Empresa Nacional de Electricidad
SA ............................. 4,536,900 2,809,192
*Empresa Nacional de
Telecomunicaciones SA .......... 49,000 455,702
Enersis SA ....................... 3,895,960 2,207,329
*Forestal Terranova SA ............ 147,795 195,327
Industrias Forestales Inforsa SA . 1,057,365 266,541
Invercap SA ...................... 100,000 117,474
Laboratorio Chile SA ............. 271,069 179,120
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SHARES VALUE+
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Madeco Manufacturera de Cobre SA . 231,227 $ 599,855
Maderas y Sinteticos SA .......... 357,062 182,638
Minera Mantos Blancos SA ......... 102,255 267,775
Sociedad Industrial Pizarreno SA . 63,000 137,256
Sociedad Quimica y Minera de Chile
SA Series A .................... 36,000 178,855
Vina Sta Carolina SA Series A .... 186,273 196,029
Vina Sta Carolina SA Series B .... 18,627 19,602
Vina de Concha y Toro SA ......... 350,000 115,639
--------------
TOTAL COMMON STOCKS
(Cost $13,477,444) ............... 19,536,477
--------------
INVESTMENT IN CURRENCY -- (0.3%) .
*Chilean Pesos (Cost $613,228) .... 611,618
--------------
PREFERRED STOCK -- (0.2%) ........
Sociedad Quimica y Minera de Chile
SA Series B (Cost $232,337) .... 77,090 386,771
--------------
TOTAL -- CHILE (Cost $14,323,009) . 20,534,866
--------------
INDONESIA -- (10.2%)
COMMON STOCKS -- (10.0%)
PT Argo Pantes (Foreign) ......... 135,625 122,132
PT Astra International (Foreign) . 1,094,400 1,642,539
PT Berlian Laju Tanker (Foreign) . 166,000 74,743
*PT Branta Mulia (Foreign) ........ 63,000 48,628
PT Charoen Pokphand Indonesia
(Foreign) ...................... 84,000 164,794
PT Dankos Laboratories (Foreign) . 47,250 116,504
PT Gadjah Tunggal (Foreign) ...... 744,000 398,799
PT Hadtex Indosyntec (Foreign) ... 403,200 129,674
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SHARES VALUE+
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PT Hanjaya Mandala Sampoerna
(Foreign) ...................... 455,000 $ 5,653,355
PT Hero Supermarket (Foreign) .... 220,000 221,698
PT Indah Kiat Pulp & Paper Corp.
(Foreign) ...................... 2,076,637 1,981,354
PT Indocement Tunggal Prakarsa
(Foreign) ...................... 83,000 295,412
PT Indorama Synthetics (Foreign) . 148,700 414,473
PT Inti Indorayon Utama (Foreign) 411,500 370,562
PT Jakarta International Hotel and
Development (Foreign) .......... 636,000 838,636
PT Japfa Comfeed Indonesia
(Foreign) ...................... 124,000 81,089
PT Kabelmetal Indonesia (Foreign) 90,000 47,277
PT Kalbe Farma (Foreign) ......... 204,800 491,801
PT Lippo Land Development ........ 193,200 449,447
PT Mayora Indah (Foreign) ........ 577,572 352,933
PT Modern Photo Film Co. (Foreign) 125,000 611,063
PT Pakuwon Jati (Foreign) ........ 396,000 152,830
PT Polysindo Eka Perkasa (Foreign) 1,032,000 564,237
PT Semen Cibinong (Foreign) ...... 106,200 277,796
PT Semen Gresik (Foreign) ........ 600,000 1,987,564
PT Summarecon Agung (Foreign) .... 120,700 67,286
PT Surya Toto Indonesia (Foreign) 46,400 101,475
PT Tigaraksa Satria (Foreign) .... 38,000 189,022
PT Unggul Indah Corp. (Foreign) .. 146,298 159,974
--------------
TOTAL COMMON STOCKS
(Cost $11,576,873) .............. 18,007,097
--------------
INVESTMENT IN CURRENCY -- (0.0%)
*Indonesian Rupees (Cost $1) ...... 1
-------------
RIGHTS/WARRANTS -- (0.2%)
*PT Indah Kiat Pulp & Paper Corp.
Warrants for Foreign 04/13/01 .. 249,196 112,202
*PT Polysindoeka Perkasa (Foreign)
Rights 07/09/96 ................ 1,032,000 210,206
--------------
TOTAL RIGHTS/WARRANTS (Cost $0) .. 322,408
--------------
TOTAL -- INDONESIA
(Cost $11,576,874) ............... 18,329,506
--------------
ARGENTINA -- (10.1%)
COMMON STOCKS -- (10.1%)
*Acindar Industria Argentina de
Aceros SA Series A ............. 161,067 127,298
*Alpargatas SA Industrial y
Comercial ...................... 275,000 196,710
Astra Cia Argentina de Petroleos
SA ............................. 314,920 708,875
Bagley y Cia, Ltd. SA Series B ... 121,090 306,489
Banco Frances del Rio de la Plata
SA ............................. 118,374 1,119,116
Banco de Galicia y Buenos Aires SA
Series A ....................... 190,014 1,131,070
Buenos Aires Embotelladora SA
Series B ....................... 250 200,086
*CIADEA SA ........................ 102,210 741,343
*Celulosa Argentina SA Series B ... 173,500 47,733
*Corcemar Corporacion Cementera
Argentina SA Series B .......... 29,106 141,807
*Indupa SA Industrial y Comercial . 438,400 216,224
Industrias Petroq Koppers ........ 25,800 99,373
Irsa Inversiones y
Representaciones SA ............ 88,477 289,444
Juan Minetti SA .................. 24,000 104,925
Ledesma SA ....................... 190,500 300,167
Molinos Rio de la Plata SA
Series B ....................... 61,102 696,862
Naviera Perez Companc SA Series B 488,024 3,114,933
Nobleza-Piccardo Sdad Industrial
Comercial y Financiera Pica .... 44,200 170,243
*Sevel Argentina SA Series C ...... 92,476 265,519
Siderca SA Series A .............. 785,410 950,755
*Sociedad Comercial del Plata ..... 145,060 433,916
Telecom Argentina Stet-France SA
Series B ....................... 718,800 3,351,049
Telefonica de Argentina SA
Series B ....................... 1,183,000 3,455,846
--------------
TOTAL -- ARGENTINA (Cost $13,092,203) 18,169,783
--------------
THAILAND -- (10.0%)
COMMON STOCKS -- (10.0%)
<PAGE>
SHARES VALUE+
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Advanced Info Service Public Co.,
Ltd. (Foreign) ................. 124,500 $ 2,096,324
American Standard Sanitaryware
(Thailand) Public Co. Ltd.
(Foreign) ...................... 4,150 70,534
Asia Securities Trading Public
Co., Ltd. (Foreign) ............ 69,000 195,000
Ayudhya Insurance Public Co., Ltd.
(Foreign) ...................... 13,000 95,573
Bangkok Land Public Co., Ltd.
(Foreign) ...................... 256,400 326,834
Bangkok Rubber Public Co., Ltd.
(Foreign) ...................... 40,000 16,206
Bangkok Steel Industry Public Co.,
Ltd. (Foreign) ................. 84,000 71,383
Bank of Asia Public Co., Ltd.
(Foreign) ...................... 188,100 405,196
Bank of Ayudhya Public Co., Ltd.
(Foreign) ...................... 61,600 370,087
Banpu Public Co., Ltd. (Foreign) . 25,000 719,368
Charoen Pokphand Feedmill Public
Co., Ltd. (Foreign) ............ 8,100 49,304
*Christiani and Nielson (Thai)
Public Co., Ltd. (Foreign) ..... 56,779 33,102
First Bangkok City Bank Public
Co., Ltd. (Foreign) ............ 460,200 904,939
Kiatnakin Finance and Securities
Public Co., Ltd. (Foreign) ..... 36,000 110,988
Krung Thai Bank Public Co., Ltd.
(Foreign) ...................... 616,000 3,140,870
Land and House Public Co., Ltd.
(Foreign) ...................... 71,100 1,124,111
MK Real Estate Development Public
Co., Ltd. (Foreign) ............ 21,000 43,992
Modernform Group Public Co., Ltd.
(Foreign) ...................... 46,000 34,545
Nawarat Patanakarn Public Co.,
Ltd. ........................... 6,400 17,202
*New Imperial Hotel Public Co.,
Ltd. (Foreign) ................. 32,000 31,621
<PAGE>
SHARES VALUE+
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*Padaeng Industry Public Co., Ltd
(Foreign) ...................... 55,000 $ 34,239
Post Publishing Public Co., Ltd.
(Foreign) ...................... 9,200 76,364
Premier Enterprises Public Co.,
Ltd. (Foreign) ................. 32,000 51,225
Saha Pathana Inter-Holding Public
Co., Ltd. (Foreign) ............ 25,400 58,229
Securities One Public Co., Ltd.
(Foreign) ...................... 69,000 605,455
Shangri-La Hotel Public Co., Ltd.
(Bangkok) ...................... 54,000 62,431
Shinawatra Computer and
Communications Public Co., Ltd.
(Foreign) ...................... 102,800 2,470,451
Siam City Bank Public Co., Ltd.
(Foreign) ...................... 638,200 750,453
Siam City Cement Public Co., Ltd.
(Foreign) ...................... 90,600 1,196,063
Siam Commercial Bank Public Co.,
Ltd. (Foreign) ................. 1,000 15,968
Siam Pulp & Paper Co., Ltd.
(Foreign) ...................... 48,000 111,937
Sino-Thai Engineering and
Construction Public Co., Ltd.
(Foreign) ...................... 21,200 100,553
Srithai Superware Public Co., Ltd.
(Foreign) ...................... 21,000 148,577
TPI Polene Public Co., Ltd.
(Foreign) ...................... 135,581 728,815
Tanayong Public Co., Ltd.
(Foreign) ...................... 163,800 244,405
Thai German Ceramic Industry
Public Co., Ltd. (Foreign) ..... 58,000 137,549
Thai Glass Industries Public Co.,
Ltd. (Foreign) ................. 60,000 291,700
Thai Military Bank Public Co.,
Ltd. (Foreign) ................. 204,000 1,040,158
*Thai Packaging and Printing Public
Co., Ltd. (Foreign) ............ 29,500 13,992
Thai Wah Public Co., Ltd.
(Foreign) ...................... 21,000 19,921
*Unicord Public Co., Ltd. (Foreign) 85,000 11,423
--------------
TOTAL COMMON STOCKS (Cost
$10,672,103) ................... 18,027,087
--------------
RIGHTS/WARRANTS -- (0.0%)
*Bank of Ayudhya Public Co., Ltd.
(Foreign) Rights 07/05/96 ...... 15,400 52,957
*Kiatnakin Finance and Securities
Public Co., Ltd. Warrants
03/30/00 ....................... 4,500 9,427
--------------
TOTAL RIGHTS/WARRANTS (Cost $0) .. 62,384
--------------
TOTAL -- THAILAND (Cost $10,672,103) 18,089,471
--------------
MALAYSIA -- (9.9%)
COMMON STOCKS -- (9.9%)
AMMB Holdings Berhad ............. 31,000 418,751
AMMB Holdings Berhad 7.5%
Unsecured Loan Stock 1999 ...... 31,000 18,859
Amsteel Corp. Berhad ............. 198,000 151,363
Aokam Perdana Berhad ............. 32,000 57,378
Asiatic Development Berhad ....... 117,000 121,285
Berjaya Leisure Berhad ........... 74,000 68,121
Berjaya Singer Berhad ............ 32,400 32,549
*Commerce Asset Holding Berhad .... 38,000 255,513
DCB Holdings Berhad .............. 123,000 408,605
Edaran Otomobil Nasional Berhad .. 35,000 312,387
Ekran Berhad ..................... 42,000 158,015
Genting Berhad ................... 112,500 954,573
Golden Hope Plantations Berhad ... 159,000 253,280
Guiness Anchor Berhad ............ 35,000 75,645
Highlands and Lowlands Berhad .... 99,000 190,194
Hong Leong Credit Berhad ......... 56,499 266,835
Hong Leong Industries Berhad ..... 23,000 115,990
Hume Industries (Malaysia) Berhad 57,000 287,452
Kamunting Corp. Berhad ........... 127,000 96,578
Kedah Cement Holdings Berhad ..... 41,000 80,080
Kuala Lumpur Kepong Berhad ....... 117,000 285,651
Leader Universal Holdings Berhad . 68,333 205,122
Lion Land Berhad ................. 12,375 14,661
Magnum Corp. Berhad .............. 240,000 403,442
Malayan Banking Berhad ........... 187,000 1,773,824
Malayan Cement Berhad ............ 54,000 125,355
Malayan United Industries Berhad . 208,000 176,490
Malaysia Mining Corp. Berhad ..... 74,200 83,154
Malaysian Airlines System ........ 114,000 358,175
<PAGE>
SHARES VALUE+
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Malaysian Oxygen Berhad .......... 23,000 $ 117,831
Nestle (Malaysia) Berhad ......... 38,000 295,057
New Straits Times Press (M) Berhad 32,000 165,219
Nylex (Malaysia) Berhad .......... 17,000 67,360
Oriental Holdings Berhad ......... 24,000 144,086
Perusahaan Otomobil Nasional
Berhad ......................... 81,000 418,211
RJ Reynolds Berhad ............... 43,000 130,798
Resorts World Berhad ............. 174,000 1,002,842
Rothmans of Pall Mall Malaysia
Berhad ......................... 46,000 445,547
Shell Refining Co. Federation of
Malaysia Berhad ................ 48,000 161,377
Sime Darby Berhad (Malaysia) ..... 355,980 954,599
Sime UEP Properties Berhad ....... 66,000 141,325
Tan Chong Motor Holdings Berhad .. 110,000 162,898
*Telekom Malaysia Berhad .......... 325,000 2,965,779
Tenaga Nasional Berhad ........... 502,000 2,129,758
UMW Holdings Berhad .............. 39,666 130,183
United Engineers (Malaysia) Berhad 87,000 605,884
--------------
TOTAL COMMON STOCKS (Cost
$10,704,896) ................... 17,788,081
--------------
RIGHTS/WARRANTS -- (0.0%)
*Malaysia Mining Corp. Berhad
Rights 06/20/96 (Cost $0) ...... 31,800 10,182
--------------
TOTAL -- MALAYSIA (Cost $10,704,896) 17,798,263
--------------
MEXICO -- (9.4%)
COMMON STOCKS -- (9.4%)
Apasco S.A. de C.V. .............. 48,000 258,656
CEMEX (Cementos de Mexico S.A. de
C.V.) Series B ................. 358,000 1,437,209
*COMERCI (Controladora Comercial
Mexicana S.A. de C.V.) Series B 279,000 265,356
<PAGE>
SHARES VALUE+
------------- --------------
Cementos de Mexico SA de C.V.
Series A ....................... 13,500 $ 50,104
*Cifra S.A. de C.V. Series C ...... 1,083,000 1,604,877
El Puerto de Liverpool S.A.
Series 1 ....................... 20,000 16,866
El Puerto de Liverpool S.A.
Series C1 ...................... 328,600 238,161
*Empresas ICA Sociedad Controladora
S.A. de C.V. ................... 56,000 809,484
Empresas la Moderna S.A. de C.V.
Series A ....................... 184,885 871,747
Fomento Economico Mexicano S.A. de
C.V. Series B .................. 244,000 721,514
*Grupo Carso S.A. de C.V. Series
A-1 ............................ 271,000 2,000,647
*Grupo Financiero Banamex Accival
S.A. de C.V. Series B .......... 456,000 1,038,179
*Grupo Financiero Banamex Accival
S.A. de C.V. Series L .......... 42,608 89,543
*Grupo Financiero Bancomer S.A. de
C.V. Series B .................. 790,000 352,270
*Grupo Financiero Bancomer S.A. de
C.V. Series L .................. 29,259 10,524
*Grupo Financiero GBM Atlantico
S.A. de C.V. ................... 980 582
*Grupo Financiero GBM Atlantico
S.A. de C.V. Series B .......... 149,000 88,320
*Grupo Financiero Invermexico S.A.
de C.V. Series B ............... 454,792 64,331
*Grupo Financiero Invermexico S.A.
de C.V. Series L ............... 12,600 1,697
*Grupo Financiero Serfin S.A. de
C.V. Series B .................. 214,000 138,381
*Grupo Gigante S.A. Series B ...... 392,000 134,134
Grupo Industrial Alfa S.A.
Series A ....................... 64,000 1,021,689
Grupo Industrial Bimbo S.A. de
C.V. Series A .................. 132,337 640,024
*Grupo Televisa S.A. (Certificate
Representing Series A, Series D,
+ Series L) .................... 62,000 960,528
Kimberly Clark de Mexico S.A. de
C.V. Series A .................. 72,000 1,330,783
Telefonos de Mexico S.A. Series L 1,280,000 2,114,078
*Tolmex S.A. de C.V. Series B-2 ... 40,000 210,158
Vitro S.A. ....................... 176,400 418,246
--------------
TOTAL -- MEXICO (Cost $18,297,629) .. 16,888,088
--------------
TURKEY -- (8.4%)
COMMON STOCKS -- (8.3%)
Akbank ........................... 6,294,000 721,329
*Akbank Issue 96 .................. 9,441,000 985,817
Akcimento ........................ 2,128,000 151,748
Aksa ............................. 1,951,479 385,177
*Aksa Issue 96 .................... 780,591 135,880
Alarko Holding ................... 697,320 139,855
Arcelik A.S. ..................... 8,345,531 669,513
Aygaz ............................ 1,862,784 314,299
Bekoteknik Sanayi A.S. ........... 1,999,920 110,781
Brisa Bridgestone Sanbanci Lastik
San & Tic A.S. ................. 1,323,000 454,871
CIMSA A.S. (Cimento Sanayi ve
Ticaret) ....................... 312,000 150,974
Cimentas A.S. .................... 440,072 107,875
*Cimentas Izmir Cimento Fabrikasi
Turk A.S. Issue 96 ............. 234,000 52,117
Cukurova Elektrik A.S. ........... 559,000 370,152
Dogan Sirketler Grubu Holdings
A.S. ........................... 3,955,000 161,161
Doktas ........................... 480,000 36,063
EGE Biracilik ve Malt Sanayii A.S. 1,775,140 745,952
*Eczacibasi Ilac .................. 3,781,620 134,834
Erciyas Biracilik ................ 992,640 518,251
Eregli Demir ve Celik Fabrikalari
Turk A.S. ...................... 7,837,500 848,322
Good Year Lastikleri A.S. ........ 661,500 240,071
Guney Biracilik .................. 478,500 103,585
*Hurriyet Gazette ................. 2,194,000 89,403
*Izmir Demir Celik ................ 4,094,000 75,593
Koc Holding A.S. ................. 3,727,706 795,098
Migros Turk A.S. ................. 599,400 450,332
Netas Northern Electric
Telekomunikasyon A.S. .......... 1,292,000 259,124
*Otosan Otomobil A.S. ............. 1,644,000 528,601
*Tat Konserve ..................... 500,000 232,395
Tofas Turk Otomobil Fabrikasi A.S. 9,332,750 499,141
Trakya Cam Sanayii A.S. .......... 3,642,336 459,176
Turcas Petrolculuk A.S. .......... 572,585 193,219
Turk Demir Dokum ................. 2,324,986 159,874
<PAGE>
SHARES VALUE+
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Turk Siemens Kablo ve Elektrik
Sanayi A.S. .................... 504,000 $ 150,821
*Turk Sise Cam .................... 6,957,418 460,697
Turkiye Garanti Bankasi A.S. ..... 8,889,081 458,433
*Turkiye Garanti Bankasi A.S. Issue
96 ............................. 11,111,350 455,250
Turkiye Is Bankasi A.S. Series C . 10,840,000 911,040
USAS (Ucak Servisi A.S.) ......... 50,000 70,037
Yapi ve Kredi Bankasi A.S. ....... 15,966,628 386,306
*Yapi ve Kredi Bankasi A.S. Issue
96 ............................. 33,529,918 725,848
--------------
TOTAL COMMON STOCKS
(Cost $13,689,951) ............. 14,899,015
--------------
RIGHTS/WARRANTS -- (0.1%)
*Aksa Rights 06/18/96 ............. 975,739 180,163
*Alarko Holding Rights 06/29/96 ... 498,086 56,132
*Turk Demir Dokum Rights 07/01/96 . 1,859,989 26,054
--------------
TOTAL RIGHTS/WARRANTS (Cost $0) .. 262,349
--------------
TOTAL -- TURKEY (Cost $13,689,951) .. 15,161,364
--------------
PORTUGAL -- (7.7%)
COMMON STOCKS -- (7.7%)
BCP (Banco Comercial Portugues SA) 223,200 2,735,225
*BCP (Banco Comercial Portugues SA)
Em 96 .......................... 52,195 618,142
Banco Totta & Acores SA .......... 59,070 1,152,594
Cel-Cat Fabrica Nacional de
Condutores Electricos SA ....... 3,300 49,719
Corticeira Amorim Sociedad Gestora
Participacoes Sociais SA ....... 37,100 431,149
*EFACEC (Empresa Fabril de Maquinas
Electricas) .................... 13,600 123,167
*Filmes Lusomundo SA .............. 7,612 49,895
<PAGE>
SHARES VALUE+
------------- --------------
Jeronimo Martins (Estabelecimentos
Jeronimo Martins & Filho
Administracao e Participacoes
Financeiros SA) ................ 34,300 $ 2,715,326
*Lusotur Sociedad Financeira de
Turismo SA ..................... 13,266 215,919
Mague-Gestao e Participacoes SA .. 11,800 189,630
Modelo Continente SGPS SA ........ 28,100 712,377
Portugal Telecom SA .............. 65,232 1,569,451
Salvador Caetano Industrias
Metalurgicas e Veiculos de
Transporte SA .................. 15,868 197,873
Sociedad Construcoes Soares da
Costa SA ....................... 23,710 208,720
Sonae Investimentos Sociedade
Gestora de Participacoes Sociais
SA ............................. 81,800 2,061,319
Uniceruniao Cervejeira SA ........ 50,600 897,918
--------------
TOTAL -- PORTUGAL (Cost $11,862,747) 13,928,424
--------------
ISRAEL -- (7.6%)
COMMON STOCKS -- (7.6%)
*Africa-Israel Investments, Ltd. .... 300 280,025
*Africa-Israel Investments, Ltd. .... 150 120,708
Agis Industries (1983), Ltd. ....... 17,600 120,063
American Israeli Paper Mills, Ltd. . 3,000 110,252
Bank Hapoalim B.M. ................. 885,500 1,310,738
Bank Leumi Israel .................. 947,250 1,086,085
Bezek, Ltd. ........................ 473,000 1,172,170
*Blue Square Chain Stores Properties
Investment ........................ 16,000 103,616
CLAL Electronics Industries, Ltd. .. 2,500 274,751
CLAL Industries, Ltd. .............. 94,000 477,869
CLAL Insurance, Ltd. ............... 27,000 137,178
CLAL Israel, Ltd. .................. 21,400 516,111
Delek Israel Fuel Corp., Ltd. Series
C ................................. 7,000 176,550
Discount Investment Corp ........... 6,570 438,186
Elbit, Ltd. ........................ 4,960 267,904
Elite Industries, Ltd. ............. 50,400 168,163
Elron Electronic Industries, Ltd. .. 3,980 153,765
*First International Bank of Israel . 3,900 420,438
*IDB Bankholding Corp., Ltd. ........ 129,600 492,565
*IDB Development Corp., Ltd. Series A 31,500 556,085
*Israel Chemicals, Ltd. ............. 917,000 762,127
*Israel Corp. Series A .............. 4,000 210,580
Koor Industries, Ltd. .............. 9,345 807,908
Makhteshim Chemical Works, Ltd. .... 41,000 235,170
*Matav Cable Israel ................. 16,000 133,026
*Osem Investment, Ltd. .............. 54,656 313,168
Property and Building Corp., Ltd. .. 3,000 140,327
Super-Sol, Ltd. Series B ........... 12,000 249,879
Tadiran, Ltd. ...................... 83,549 347,952
Tambour ............................ 40,000 68,551
Teva Pharmaceutical Industries, Ltd. 4,605 2,038,894
--------------
TOTAL -- ISRAEL (Cost $15,169,705) .. 13,690,804
--------------
UNITED STATES -- (0.0%)
COMMON STOCKS -- (0.0%) ..........
Turkiye Garanti Bankasi A.S. ADR
(Representing 200 Shares) (Cost
$81,115) ....................... 9,000 45,000
--------------
Face
Amount
(000) Value+
------------- --------------
TEMPORARY CASH INVESTMENTS --
(2.2%)
Repurchase Agreement, Chase
Manhattan Bank 5.15%, 06/03/96
(Collateralized by U.S. Treasury
Notes 5.875%, 07/31/97)
(Cost $4,024,000) ............... $ 4,024 4,024,000
--------------
TOTAL INVESTMENTS -- (100.0%)
(Cost $135,560,738) ............. $180,357,044
==============
</TABLE>
- ------
+See Note B to Financial Statements.
*Non-Income Producing Securities
See accompanying Notes to Financial Statements
<PAGE>
DIMENSIONAL EMERGING MARKETS FUND INC.
STATEMENT OF ASSETS AND LIABILITIES
MAY 31, 1996
(Unaudited)
(Amounts in thousands, except share amounts)
ASSETS:
Investments at Value (Cost of $135,561) ............... $ 180,357
Cash .................................................. 15
Receivable for Dividends and Interest ................. 382
Other Assets .......................................... 88
---------
Total Assets .................................... 180,842
---------
LIABILITIES:
Chilean Withholding Tax ............................... 170
Accrued Expenses ...................................... 126
Payable for Investment Securities Purchased ........... 27
---------
Total Liabilities ............................... 323
---------
NET ASSETS applicable to 10,831,965 shares outstanding
$.01 par value shares (authorized 200,000,000 shares) ......... $ 180,519
=========
NET ASSET VALUE ................................................ $ 16.67
=========
PUBLIC OFFERING PRICE PER SHARE ................................ $ 16.75
=========
NET ASSETS CONSIST OF:
Paid-In Capital ....................................... $ 133,568
Undistributed Net Investment Income ................... 2,109
Undistributed Net Realized Gain ....................... 90
Accumulated Net Realized Foreign
Exchange Loss ........................................ (38)
Unrealized Net Foreign Exchange Loss .................. (6)
Unrealized Appreciation of Investment
Securities and Foreign Currency ...................... 44,796
---------
Total Net Assets ................................ $ 180,519
=========
See accompanying Notes to Financial Statements
13
<PAGE>
DIMENSIONAL EMERGING MARKETS FUND INC.
STATEMENT OF OPERATIONS
FOR THE SIX MONTHS ENDED MAY 31, 1996
(Unaudited)
(Amounts in thousands)
Investment Income
Dividends (Net of Foreign Taxes Withheld of $225) .......... $ 2,772
Interest ................................................... 117
--------
Total Investment Income ................................ 2,889
--------
Expenses
Investment Advisory Services ............................... 426
Accounting & Transfer Agent Fees ........................... 85
Custodian's Fee ............................................ 233
Legal Fees ................................................. 29
Audit Fees ................................................. 15
Directors' Fees and Expenses ............................... 14
Organization Costs ......................................... 25
Other ...................................................... 28
--------
Total Expenses ......................................... 855
Less: Fee Waived ........................................... (341)
--------
Net Expenses ............................................... 514
--------
Net Investment Income ...................................... 2,375
--------
Net Realized and Unrealized Gain (Loss) on
Investments and Foreign Currency
Net Realized Gain on Investment Securities ...................... 102
Net Realized Loss on Foreign
Currency Transactions .......................................... (38)
Change in Unrealized Appreciation (Depreciation) of:
Investment Securities and Foreign Currency ..................... 21,004
Translation of Foreign Currency Denominated
Amounts ........................................................ 22
--------
Net Gain on Investment Securities and
Foreign Currency .......................................... 21,088
--------
Net Increase in Net Assets
Resulting from Operations .................................. 23,465
========
See accompanying Notes to Financial Statements
14
<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,
1996 1995
----------- ----------
(Unaudited)
<S> <C> <C>
Increase (Decrease) in Net Assets
Operations:
Net Investment Income .............................. $ 2,375 $ 3,072
Net Realized Gain on Investment Securities ......... 102 2,731
Net Realized Loss on Foreign Currency
Transactions ...................................... (38) (19)
Change in Unrealized Appreciation (Depreciation) of:
Investment Securities and Foreign Currency ....... 21,004 (26,817)
Translation of Foreign Currency Denominated
Amounts ......................................... 22 (8)
--------- ---------
Net Increase (Decrease) in Net Assets
Resulting from Operations ....................... 23,465 (21,041)
--------- ---------
Distributions From:
Net Investment Income .............................. (329) (3,002)
Net Realized Gain .................................. (2,627) (319)
--------- ---------
Total Distributions ............................... (2,956) (3,321)
--------- ---------
Capital Share Transactions (1):
Shares Issued ...................................... -- 25,000
Shares Issued in Lieu of Cash Distributions ........ 2,956 3,321
--------- ---------
Net Increase From Capital Share Transactions ...... 2,956 28,321
--------- ---------
Total Increase .................................... 23,465 3,959
Net Assets
Beginning of Period ................................ 157,054 153,095
--------- ---------
End of Period ...................................... $ 180,519 $ 157,054
========= =========
(1) Share Amounts:
Shares Issued ...................................... -- 1,460
Shares Issued in Lieu of Cash Distributions ........ 197 223
--------- ---------
197 1,683
========= =========
</TABLE>
See accompanying Notes to Financial Statements
15
<PAGE>
DIMENSIONAL EMERGING MARKETS FUND INC.
FINANCIAL HIGHLIGHTS
(for a share outstanding throughout each period)
<TABLE>
<CAPTION>
Six Months Year Year
Ended Ended Ended February 2
May 31, Nov. 30, Nov. 30, to Nov. 30
1996 1995 1994 1993
---------- -------- -------- ----------
(Unaudited)
<S> <C> <C> <C> <C>
Net Asset Value, Beginning of Period.................... $14.77 $17.10 $15.18 $10.00
----- ----- ----- -----
Income from Investment Operations
- ---------------------------------
Net Investment Income............................. 0.22 0.28 0.19 0.16
Net Gains on Securities (Realized and
Unrealized)..................................... 1.96 (2.29) 1.94 5.53
------ ------ ----- -----
Total from Investment Operations........... 2.18 (2.01) 2.13 5.69
------ ------ ----- -----
Effect of Capital Changes - - - (0.46)
- ------------------------- --------- ---------- ------- ------
Less Distributions
- ------------------
Net Investment Income............................. (0.03) (0.29) (0.20) (0.05)
Net Realized Gain................................. (0.25) (0.03) (0.01) -
------ ------ ----- ------
Total Distributions........................ (0.28) (0.32) (0.21) (0.05)
------ ------ ----- -----
Net Asset Value, End of Period.......................... $16.67 $14.77 $17.10 $15.18
===== ===== ===== =====
Total Investment Return (a)............................. 14.96%(#) (11.73)% 14.02% 52.32%(#)
Net Assets, End of Period (thousands)................... $180,519 $157,054 $153,095 $134,232
Ratio of Expenses to Average Net Assets................. 0.60%(*)(b) 0.58%(b) 0.80%(b) 0.73%(*)
Ratio of Net Investment Income to
Average Net Assets..................................... 2.78%(*)(b) 2.10%(b) 1.18%(b) 1.59%(*)
Portfolio Turnover Rate................................. 0.46%(*) 5.73% 0.26% 0.28%(*)
Average Commission Rate (c)............................. $0.0009 N/A N/A N/A
</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 periods ended May 31, 1996, November 30, 1995 and 1994
would have been 1.00%, 0.98% and 0.88%, respectively, and the ratios of
net investment income to average net assets for the periods ended May 31,
1996, November 30, 1995 and 1994 would have been 2.38%, 1.70% and 1.10%,
respectively.
(c) Computed by dividing the total amount of brokerage commissions paid by the
total shares of investment securities purchased and sold during the period
for which commissions were charged, as required by the SEC for fiscal
years beginning after September 1, 1995.
See accompanying Notes to Financial Statements
16
<PAGE>
DIMENSIONAL EMERGING MARKETS FUND INC.
NOTES TO FINANCIAL STATEMENTS
(Unaudited)
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 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.
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.
17
<PAGE>
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 period May 31, 1996, 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 the extent necessary to
keep the cumulative annual expenses to not more than 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, 1996, 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.................................... $2,857
Sales .................................... 388
E. Investment Transactions:
At May 31, 1996, 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 ............. $58,791
Gross Unrealized Depreciation.............. (13,995)
-------
Net .................................. $44,796
======
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 0.5% of such net asset
value. Reimbursement fees are recorded as an addition to paid in capital.
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
