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Dimensional Emerging Markets Fund Inc.
Semi-Annual
Report
Six Months Ended May 31, 1997
(Unaudited)
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DIMENSIONAL EMERGING MARKETS FUND INC.
SEMI-ANNUAL REPORT
(UNAUDITED)
TABLE OF CONTENTS
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PAGE
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Schedule of Investments.............................................................................................. 1-5
Statement of Assets and Liabilities.................................................................................. 6
Statement of Operations.............................................................................................. 7
Statements of Changes in Net Assets.................................................................................. 8
Financial Highlights................................................................................................. 9
Notes to Financial Statements........................................................................................ 10-11
Description of the Fund's Dividend Reinvestment Plan................................................................. 12
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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.
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DIMENSIONAL EMERGING MARKETS FUND INC.
SCHEDULE OF INVESTMENTS
MAY 31, 1997
(UNAUDITED)
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SHARES VALUE+
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BRAZIL -- (16.0%)
PREFERRED STOCKS -- (9.6%)
Aracruz Celulose SA Series B.......................... 1,265,999 $ 2,578,602
Banco Bradesco SA..................................... 155,246,374 1,235,821
*Banco do Brasil SA................................... 56,145,862 496,253
Banco Itau SA......................................... 3,312,000 1,701,953
Brasmotor SA.......................................... 2,015,570 451,964
COFAP (Cia Fabricadora De Pecas)...................... 14,250 146,454
Cervejaria Brahma..................................... 4,049,480 2,939,779
Duratex SA............................................ 4,510,000 231,715
Ericsson Telecomunicacoes SA.......................... 20,194,770 1,132,100
IKPC Industrias Klabin de Papel e Celulose SA......... 418,531 398,862
Investimentos Itau SA................................. 1,088,000 833,561
*Lojas Americanas SA.................................. 4,324,460 54,546
Multibras Eletrodomesticos SA......................... 427,145 435,007
*Paranapanema SA...................................... 9,588,000 80,624
Sadia Concordia SA.................................... 308,282 296,674
Siderurgica Belgo-Mineira............................. 2,181,754 148,807
Telecomunicacoes Brasileiras SA....................... 1,889,166 260,702
USIMINAS (Usinas Siderurgicas de Minas Gerais SA)..... 41,925 454,391
Vale do Rio Doce...................................... 239,144 5,284,271
*Vale do Rio Doce Series B............................ 239,144 0
White Martins SA...................................... 286,687 932,141
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TOTAL PREFERRED STOCKS
(Cost $8,477,695).................................... 20,094,227
------------
COMMON STOCKS -- (6.4%)
*Banco do Estado de Sao Paulo SA...................... 6,300,000 80,052
*Banco do Estado de Sao Paulo SA...................... 14,980,000 195,805
Embraco SA............................................ 342,000 137,401
*Lojas Americanas SA.................................. 6,762,000 88,324
*Mannesmann SA........................................ 378,000 50,857
Souza Cruz Industria e Comercio....................... 180,016 1,675,193
Telecomunicacoes Brasileiras SA....................... 82,869,000 10,800,146
VSMA (Cia Vidraria Santa Marina)...................... 121,000 339,157
------------
TOTAL COMMON STOCKS
(Cost $3,449,163).................................... 13,366,935
------------
RIGHTS/WARRANTS -- (0.0%)
*Banco do Brasil SA Warrants Series A 06/30/01........ 11,229,172 20,354
*Banco do Brasil SA Warrants Series B 06/30/06........ 16,843,758 25,495
*Banco do Brasil SA Warrants Series C 06/30/11........ 28,072,931 39,344
------------
TOTAL RIGHTS/WARRANTS
(Cost $0)............................................ 85,193
------------
TOTAL -- BRAZIL
(Cost $11,926,858)................................... 33,546,355
------------
TURKEY -- (11.8%)
COMMON STOCKS -- (11.7%)
Akbank................................................ 15,735,000 1,421,737
*Akbank Issue 96...................................... 27,972,109 2,527,421
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Akcansa Cimento Sanayi ve Ticaret SA.................. 1,930,935 $ 263,415
*Aksa................................................. 3,707,809 302,174
*Aksa Issue 97........................................ 741,561 55,968
Alarko Holding........................................ 996,171 114,717
Arcelik A.S........................................... 12,518,295 1,397,230
Aygaz................................................. 3,104,640 594,042
Bekoteknik Sanayi A.S................................. 1,999,920 248,024
Brisa Bridgestone Sanbanci Lastik San & Tic A.S....... 1,323,000 468,783
*CIMSA A.S. (Cimento Sanayi ve Ticaret)............... 1,560,000 196,230
Cimentas A.S.......................................... 674,072 88,373
Cukurova Elektrik A.S................................. 559,000 812,097
Dogan Sirketler Grubu Holdings A.S.................... 8,305,500 179,518
Doktas................................................ 480,000 66,331
EGE Biracilik ve Malt Sanayii A.S..................... 2,396,439 628,363
*Eczacibasi Ilac...................................... 3,781,620 176,874
Erciyas Biracilik..................................... 3,970,560 289,822
Eregli Demir ve Celik Fabrikalari Turk A.S............ 7,837,500 1,055,294
Good Year Lastikleri A.S.............................. 661,500 232,048
*Guney Biracilik...................................... 837,375 40,946
Hurriyet Gazette...................................... 2,194,000 121,276
*Izmir Demir Celik.................................... 9,222,807 106,208
Koc Holding A.S....................................... 6,212,843 1,320,851
*Migros Turk A.S...................................... 1,048,950 698,755
*Netas Northern Electric Telekomunikasyon A.S......... 1,292,000 434,909
Otosan Otomobil A.S................................... 1,644,000 908,738
Tat Konserve.......................................... 1,499,999 116,930
Tofas Turk Otomobil Fabrikasi A.S..................... 9,332,750 476,194
Trakya Cam Sanayii A.S................................ 9,692,296 377,774
Turcas Petrolculuk A.S................................ 2,233,081 121,853
Turk Demir Dokum...................................... 4,649,972 214,193
Turk Siemens Kablo ve Elektrik Sanayi A.S............. 1,260,000 109,383
Turk Sise Cam......................................... 6,957,418 714,921
Turkiye Garanti Bankasi A.S........................... 20,000,431 807,898
*Turkiye Garanti Bankasi A.S. Issue 97................ 24,444,967 851,192
Turkiye Is Bankasi A.S. Series C...................... 10,840,000 3,495,287
USAS (Ucak Servisi A.S.).............................. 50,000 99,213
Yapi ve Kredi Bankasi A.S............................. 49,496,546 1,175,065
*Yapi ve Kredi Bankasi A.S. Issue 97.................. 65,830,405 1,282,925
------------
TOTAL COMMON STOCKS
(Cost $14,197,870)................................... 24,592,972
------------
RIGHTS/WARRANTS -- (0.1%)
*Aksa Rights 06/13/97................................. 3,707,809 137,949
*Tat Konserve Rights 06/28/97......................... 999,999 70,867
------------
TOTAL RIGHTS/WARRANTS
(Cost $0)............................................ 208,816
------------
TOTAL -- TURKEY
(Cost $14,197,870)................................... 24,801,788
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CHILE -- (11.5%)
COMMON STOCKS -- (10.8%)
Banco de Credito e Inversiones SA Series A............ 53,304 $ 365,924
Banmedica SA.......................................... 347,000 136,712
CAP SA (Compania de Aceros del Pacifico).............. 100,000 319,962
COPEC (Cia de Petroleos de Chile)..................... 757,488 3,454,637
CTI Cia Tecno Industrial SA........................... 4,900,000 140,518
Cervecerias Unidas SA................................. 143,000 653,880
Chilectra Generacion SA............................... 2,346,000 927,085
Chilectra SA.......................................... 225,611 1,535,318
Cia de Consumidores de Gas de Santiago SA............. 103,000 423,018
Compania de Sud Americana de Vapores SA............... 410,000 264,327
Compania de Telecomunicaciones de Chile SA Series A... 200,000 1,638,013
Compania de Telecomunicaciones de Chile SA Series B... 352,166 2,320,865
Compania Manufacturera de Papeles y Cartones SA....... 117,150 1,376,261
Empresa Nacional de Electricidad SA................... 4,536,900 3,304,094
Empresa Nacional de Telecomunicaciones SA............. 49,000 372,063
Enersis SA............................................ 3,895,960 2,641,960
Forestal Terranova SA................................. 147,795 153,508
Industrias Forestales Inforsa SA...................... 1,057,365 172,971
Invercap SA........................................... 100,000 81,184
Laboratorio Chile SA.................................. 271,069 335,924
Madeco Manufacturera de Cobre SA...................... 231,227 604,569
Maderas y Sinteticos SA............................... 357,062 185,863
Minera Mantos Blancos SA.............................. 102,255 249,045
Sociedad Industrial Pizarreno SA...................... 63,000 130,122
Sociedad Quimica y Minera de Chile SA Series A........ 36,000 196,848
Sociedad Quimica y Minera de Chile SA Series B........ 77,090 483,193
Vina de Concha y Toro SA.............................. 350,000 225,645
Vina Sta Carolina SA Series A......................... 163,489 109,305
Vina Sta Carolina SA Series B......................... 41,411 28,676
------------
TOTAL COMMON STOCKS
(Cost $13,709,780)................................... 22,831,490
------------
INVESTMENT IN CURRENCY -- (0.7%)
*Chilean Pesos (Cost $1,411,789)...................... 1,389,672
------------
RIGHTS/WARRANTS -- (0.0%)
*Maderas y Sinteticos SA Rights 06/24/97 (Cost $0).... 63,143 0
------------
TOTAL -- CHILE
(Cost $15,121,569)................................... 24,221,162
------------
ARGENTINA -- (10.7%)
COMMON STOCKS -- (10.7%)
*Acindar Industria Argentina de Aceros SA Series A.... 161,067 381,114
*Alpargatas SA Industrial y Comercial................. 275,000 250,100
*Astra Cia Argentina de Petroleos SA.................. 481,800 954,441
Bagley y Cia, Ltd. SA Series B........................ 121,090 242,301
Banco de Galicia y Buenos Aires SA Series A........... 226,116 1,493,112
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Banco Frances del Rio de la Plata SA.................. 136,130 $ 1,477,749
*Buenos Aires Embotelladora SA Series B............... 250 19,009
CIADEA SA............................................. 112,431 449,950
*Celulosa Argentina SA Series B....................... 43,375 17,576
*Corcemar SA Series B................................. 34,805 196,747
Garovaglio y Zorraquin SA............................. 25,800 83,376
*Indupa SA Industrial y Comercial..................... 204,322 243,265
Irsa Inversiones y Representaciones SA................ 88,477 348,774
Juan Minetti SA....................................... 32,520 144,786
Ledesma SA............................................ 192,459 221,439
Molinos Rio de la Plata SA Series B................... 178,214 695,382
Naviera Perez Companc SA Series B..................... 488,024 4,165,702
Nobleza-Piccardo Sdad Industrial Comercial y
Financiera Pica..................................... 44,200 235,704
*Sevel Argentina SA Series C.......................... 92,476 185,044
Siderar SAIC Series A................................. 31,416 137,891
Siderca SA Series A................................... 785,410 1,885,927
*Sociedad Comercial del Plata......................... 145,060 505,061
Telecom Argentina Stet-France SA Series B............. 718,800 3,833,121
Telefonica de Argentina SA Series B................... 1,183,000 4,260,930
------------
TOTAL COMMON STOCKS
(Cost $13,199,559)................................... 22,428,501
------------
RIGHTS/WARRANTS -- (0.0%)
*Corcemar SA Rights 06/04/97.......................... 34,805 0
------------
TOTAL -- ARGENTINA
(Cost $13,199,559)................................... 22,428,501
------------
PORTUGAL -- (9.9%)
COMMON STOCKS -- (9.9%)
BCP (Banco Comercial Portugues SA).................... 275,395 4,815,032
Banco Espirito Santo e Commercial de Lisboa........... 20,000 414,112
Banco Pinto & Sotto Mayor SA.......................... 16,000 107,345
Banco Totta & Acores SA............................... 59,070 842,149
Cel-Cat Fabrica Nacional de Condutores Electricos
SA.................................................. 3,300 50,101
*Companhia de Seguros Mundial Confianca SA............ 12,000 158,797
Companhia de Seguros Tranquilidade SA................. 3,000 63,835
Companhia Geral de Credito Predial Portugues SA....... 6,720 60,593
Corticeira Amorim Sociedad Gestora Participacoes
Sociais SA.......................................... 37,100 345,037
EFACEC (Empresa Fabril de Maquinas Electricas)........ 18,133 156,160
Engil Sociedade Gestora de Participacoes Sociais SA... 6,000 71,139
Filmes Lusomundo SA................................... 7,612 71,277
*Inparsa Industrias e Participacoes S.G.P.S. SA....... 40,900 347,496
Jeronimo Martins (Estabelecimentos Jeronimo Martins &
Filho Administracao e Participacoes Financeiros
SA)................................................. 68,599 4,657,908
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*Lusotur Sociedad Financeira de Turismo SA............ 13,266 $ 222,430
*Mague-Gestao e Participacoes SA...................... 11,800 340,897
Modelo Continente SGPS SA............................. 28,100 1,007,635
Portugal Telecom SA................................... 65,232 2,501,755
Salvador Caetano Industrias Metalurgicas e Veiculos de
Transporte SA....................................... 15,868 394,635
*Sociedad Construcoes Soares da Costa SA.............. 23,710 194,726
Sociedade de Investimento e Gestao SGPS SA............ 4,000 93,279
Sonae Investimentos Sociedade Gestora de Participacoes
Sociais SA.......................................... 81,800 3,067,618
Uniceruniao Cervejeira SA............................. 50,600 904,010
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TOTAL COMMON STOCKS
(Cost $12,714,206)................................... 20,887,966
------------
INVESTMENT IN CURRENCY -- (0.0%)
*Portuguese Escudos
(Cost $10,736)...................................... 9,730
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RIGHTS/WARRANTS -- (0.0%)
*Companhia Geral de Credito Predial Portugues SA
Rights 06/25/97
(Cost $0)........................................... 6,720 4,121
------------
TOTAL -- PORTUGAL
(Cost $12,724,942)................................... 20,901,817
------------
ISRAEL -- (9.5%)
COMMON STOCKS -- (9.5%)
*Africa-Israel Investments, Ltd....................... 3,000 218,357
*Africa-Israel Investments, Ltd....................... 150 89,814
*Agis Industries (1983), Ltd.......................... 17,600 184,248
American Israeli Paper Mills, Ltd..................... 3,000 128,673
*Bank Hapoalim B.M.................................... 1,029,800 2,329,631
*Bank Leumi Le-Israel................................. 947,250 1,467,653
Bezek, Ltd............................................ 601,800 1,614,892
*Blue Square Chain Stores Properties Investment....... 24,000 245,733
CLAL Electronics Industries, Ltd...................... 3,460 415,457
CLAL Industries, Ltd.................................. 122,600 634,144
CLAL Insurance, Ltd................................... 35,800 408,417
CLAL Israel, Ltd...................................... 2,515,000 788,970
Delek Israel Fuel Corp., Ltd. Series C................ 7,000 226,337
Discount Investment Corp.............................. 6,570 563,740
Elbit Medical Imaging................................. 16,533 98,667
Elbit Systems, Ltd.................................... 16,533 166,212
Elbit, Ltd............................................ 16,533 46,752
Elite Industries, Ltd................................. 10,080 239,136
Elron Electronic Industries, Ltd...................... 20,067 263,268
First International Bank of Israel.................... 780 633,041
IDB Bankholding Corp., Ltd............................ 33,600 767,033
IDB Development Corp., Ltd. Series A.................. 36,450 903,385
*Israel Chemicals, Ltd................................ 917,000 1,126,363
*Israel Corp. Series B................................ 800 222,166
Koor Industries, Ltd.................................. 12,205 1,082,628
*Leumi Holdings Insurance............................. 286,100 202,256
*Makhteshim Chemical Works, Ltd....................... 78,320 505,460
*Matav Cable Israel................................... 16,000 140,870
Osem Investment, Ltd.................................. 61,856 360,579
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Property and Building Corp., Ltd...................... 3,461 $ 282,648
Super-Sol, Ltd. Series B.............................. 139,600 471,241
Tadiran, Ltd.......................................... 15,653 426,034
Tambour............................................... 40,000 78,353
Teva Pharmaceutical Industries, Ltd................... 46,050 2,707,060
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TOTAL -- ISRAEL
(Cost $16,680,649)................................... 20,039,218
------------
MEXICO -- (9.3%)
COMMON STOCKS -- (9.3%)
Apasco S.A. de C.V.................................... 48,000 313,360
*Carso Global Telecom S.A. de C.V. Telecom Series
A1.................................................. 271,000 963,449
Cementos de Mexico S.A. de C.V. Series B.............. 358,000 1,467,510
Cementos de Mexico SA de C.V. Series A................ 13,500 50,130
Cifra S.A. de C.V. Series A........................... 132,459 226,575
Cifra S.A. de C.V. Series C........................... 1,083,000 1,715,481
Controladora Comercial Mexicana S.A. de C.V. Series
B................................................... 279,000 220,969
El Puerto de Liverpool S.A. Series 1.................. 20,000 27,277
El Puerto de Liverpool S.A. Series C1................. 328,600 374,165
Empresas ICA Sociedad Controladora S.A. de C.V........ 56,000 808,401
*Empresas la Moderna S.A. de C.V. Series A............ 184,885 909,922
Fomento Economico Mexicano S.A. de C.V. Series B...... 244,000 1,291,928
Grupo Carso S.A. de C.V. Series A-1................... 271,000 1,539,461
*Grupo Financiero Banamex Accival S.A. de C.V. Series
B................................................... 456,000 987,692
*Grupo Financiero Banamex Accival S.A. de C.V. Series
L................................................... 42,607 84,524
*Grupo Financiero Bancomer S.A. de C.V. Series B...... 790,000 296,850
*Grupo Financiero Bancomer S.A. de C.V. Series L...... 29,259 8,810
*Grupo Financiero GBM Atlantico S.A. de C.V. Series
B................................................... 149,000 116,878
*Grupo Financiero GBM Atlantico S.A. de C.V. Series
L................................................... 980 781
Grupo Financiero Inbursa S.A. de C.V. Series B........ 9,455 32,837
*Grupo Financiero Invermexico S.A. de C.V. Series B... 454,792 25,317
*Grupo Financiero Invermexico S.A. de C.V. Series L... 12,600 733
*Grupo Financiero Santander Mexicano S.A. de C.V.
Series B............................................ 20,821 12,129
*Grupo Financiero Serfin S.A. de C.V. Series B........ 290,383 91,847
*Grupo Gigante S.A. Series B.......................... 423,360 128,551
Grupo Industrial Alfa S.A. Series A................... 221,264 1,305,917
Grupo Industrial Bimbo S.A. de C.V. Series A.......... 132,337 887,381
*Grupo Televisa S.A. (Certificate Representing Series
A, Series D, + Series L)............................ 62,000 887,955
Kimberly Clark de Mexico S.A. de C.V. Series A........ 360,000 1,243,421
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Telefonos de Mexico S.A. Series L..................... 1,280,000 $ 2,846,964
*Tolmex S.A. de C.V. Series B-2....................... 40,000 187,247
*Vitro S.A............................................ 176,400 511,078
------------
TOTAL -- MEXICO
(Cost $18,367,775)................................... 19,565,540
------------
INDONESIA -- (9.1%)
COMMON STOCKS -- (9.1%)
PT Argo Pantes (Foreign).............................. 135,625 159,001
PT Astra International (Foreign)...................... 1,094,400 4,186,721
PT Berlian Laju Tanker (Foreign)...................... 431,600 452,727
PT Branta Mulia (Foreign)............................. 63,000 75,154
*PT Charoen Pokphand Indonesia........................ 168,000 84,657
PT Dankos Laboratories (Foreign)...................... 94,500 79,689
PT Gadjah Tunggal (Foreign)........................... 744,000 359,605
PT Hanjaya Mandala Sampoerna (Foreign)................ 910,000 3,677,808
*PT Hero Supermarket (Foreign)........................ 220,000 221,719
PT Indah Kiat Pulp & Paper Corp. (Foreign)............ 2,534,326 1,876,506
PT Indocement Tunggal Prakarsa (Foreign).............. 166,000 204,854
PT Indorama Synthetics (Foreign)...................... 535,320 451,422
*PT Inti Indorayon Utama (Foreign).................... 411,500 283,530
*PT Jakarta International Hotel and Development
(Foreign)........................................... 1,590,000 1,569,724
PT Japfa Comfeed Indonesia (Foreign).................. 124,000 79,062
PT Kabelmetal Indonesia (Foreign)..................... 180,000 75,895
PT Kalbe Farma (Foreign).............................. 409,600 471,773
PT Lippo Land Development (Foreign)................... 386,400 460,946
PT Mayora Indah (Foreign)............................. 577,572 267,284
PT Modern Photo Film Co. (Foreign).................... 125,000 455,060
PT Pakuwon Jati (Foreign)............................. 396,000 158,824
PT Panasia Indosyntec (Foreign)....................... 403,200 103,661
PT Polysindo Eka Perkasa (Foreign).................... 2,064,000 1,082,517
PT Semen Cibinong (Foreign)........................... 106,200 265,391
PT Semen Gresik (Foreign)............................. 600,000 1,431,510
PT Summarecon Agung (Foreign)......................... 251,056 144,582
PT Surya Toto Indonesia (Foreign)..................... 46,400 90,185
PT Tigaraksa Satria (Foreign)......................... 68,400 92,851
*PT Unggul Indah Corp. (Foreign)...................... 146,298 198,595
------------
TOTAL -- INDONESIA
(Cost $12,441,549)................................... 19,061,253
------------
MALAYSIA -- (8.2%)
COMMON STOCKS -- (8.2%)
AMMB Holdings Berhad.................................. 62,000 392,749
AMMB Holdings Berhad 7.5% Unsecured Loan Stock 1999... 31,000 18,279
Amsteel Corp. Berhad.................................. 198,000 145,936
*Aokam Perdana Berhad................................. 32,000 40,287
Asiatic Development Berhad............................ 117,000 104,880
Berjaya Leisure Berhad................................ 74,000 199,004
Berjaya Singer Berhad................................. 32,400 67,769
Commerce Asset Holding Berhad......................... 76,000 221,036
DCB Holdings Berhad................................... 123,000 396,932
Edaran Otomobil Nasional Berhad....................... 35,000 305,378
Ekran Berhad.......................................... 42,000 92,869
Genting Berhad........................................ 112,500 587,151
Golden Hope Plantations Berhad........................ 159,000 271,123
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Guiness Anchor Berhad................................. 35,000 $ 76,693
Highlands and Lowlands Berhad......................... 99,000 156,191
Hong Leong Credit Berhad.............................. 56,499 272,366
Hong Leong Industries Berhad.......................... 36,800 111,426
Hume Industries (Malaysia) Berhad..................... 57,000 304,303
Kamunting Corp. Berhad................................ 127,000 91,076
Kedah Cement Holdings Berhad.......................... 41,000 60,438
Kuala Lumpur Kepong Berhad............................ 117,000 302,988
Leader Universal Holdings Berhad...................... 68,333 148,372
Lion Land Berhad...................................... 12,375 11,981
Magnum Corp. Berhad................................... 240,000 399,681
Malayan Banking Berhad................................ 187,000 1,974,303
Malayan Cement Berhad................................. 67,500 112,948
Malayan United Industries Berhad...................... 208,000 152,478
Malaysia Mining Corp. Berhad.......................... 106,000 118,247
Malaysian Airlines System............................. 114,000 263,426
Malaysian Oxygen Berhad............................... 23,000 120,040
Nestle (Malaysia) Berhad.............................. 38,000 283,108
New Straits Times Press (Malaysia) Berhad............. 32,000 188,685
Nylex (Malaysia) Berhad............................... 25,500 45,311
Oriental Holdings Berhad.............................. 33,600 255,681
Perusahaan Otomobil Nasional Berhad................... 81,000 422,749
RJ Reynolds Berhad.................................... 43,000 113,068
Resorts World Berhad.................................. 174,000 582,311
Rothmans of Pall Mall Malaysia Berhad................. 46,000 485,657
Shell Refining Co. Federation of Malaysia Berhad...... 48,000 141,514
Sime Darby Berhad (Malaysia).......................... 355,980 1,162,963
Sime UEP Properties Berhad............................ 66,000 139,363
Tan Chong Motor Holdings Berhad....................... 110,000 205,100
Telekom Malaysia Berhad............................... 325,000 2,408,367
Tenaga Nasional Berhad................................ 502,000 2,300,000
UMW Holdings Berhad................................... 39,666 203,861
United Engineering (Malaysia) Berhad.................. 87,000 703,625
------------
TOTAL COMMON STOCKS
(Cost $10,741,378)................................... 17,161,713
------------
RIGHTS/WARRANTS -- (0.0%)
*Commerce Asset Holding Berhad Rights 06/04/97........ 15,200 4,845
*Commerce Asset Holding Berhad Rights for Warrants
06/04/97............................................ 9,500 0
------------
TOTAL RIGHTS/WARRANTS
(Cost $0)............................................ 4,845
------------
INVESTMENT IN CURRENCY -- (0.0%)
*Malaysian Ringetts (Cost $2,993)..................... 3,010
------------
TOTAL -- MALAYSIA
(Cost $10,744,371)................................... 17,169,568
------------
THAILAND -- (2.6%)
COMMON STOCKS -- (2.6%)
Advanced Info Service Public Co., Ltd. (Foreign)...... 124,500 876,761
American Standard Sanitaryware (Thailand) Public Co.
Ltd. (Foreign)...................................... 4,150 20,708
Asia Securities Trading Public Co., Ltd. (Foreign).... 69,000 93,018
</TABLE>
4
<PAGE>
DIMENSIONAL EMERGING MARKETS FUND INC.
CONTINUED
<TABLE>
<CAPTION>
SHARES VALUE+
------------ ------------
<S> <C> <C>
Ayudhya Insurance Public Co., Ltd. (Foreign).......... 13,000 $ 102,012
Bangkok Land Public Co., Ltd. (Foreign)............... 256,400 105,758
*Bangkok Rubber Public Co., Ltd. (Foreign)............ 40,000 6,600
*Bangkok Steel Industry Public Co., Ltd. (Foreign).... 84,000 32,113
Bank of Asia Public Co., Ltd. (Foreign)............... 188,100 158,958
Bank of Ayudhya Public Co., Ltd. (Foreign)............ 77,000 161,127
Banpu Public Co., Ltd. (Foreign)...................... 25,000 346,076
Charoen Pokphand Feedmill Public Co., Ltd.
(Foreign)........................................... 8,100 20,861
*Christiani and Nielson (Thai) Public Co., Ltd.
(Foreign)........................................... 56,779 9,825
First Bangkok City Bank Public Co., Ltd. (Foreign).... 460,200 425,940
Kiatnakin Finance and Securities Public Co., Ltd.
(Foreign)........................................... 36,000 17,746
Krung Thai Bank Public Co., Ltd. (Foreign)............ 616,000 737,465
Land and House Public Co., Ltd. (Foreign)............. 71,100 90,127
MK Real Estate Development Public Co., Ltd.
(Foreign)........................................... 23,625 17,588
Modernform Group Public Co., Ltd. (Foreign)........... 46,000 18,511
Nawarat Patanakarn Public Co., Ltd. (Foreign)......... 6,400 2,395
*New Imperial Hotel Public Co., Ltd. (Foreign)........ 32,000 28,974
*Padaeng Industry Public Co., Ltd (Foreign)........... 82,500 31,207
Post Publishing Public Co., Ltd. (Foreign)............ 23,000 37,485
Premier Enterprises Public Co., Ltd. (Foreign)........ 32,000 24,788
Saha Pathana Inter-Holding Public Co., Ltd.
(Foreign)........................................... 25,400 51,106
Securities One Public Co., Ltd. (Foreign)............. 69,000 53,451
Shangri-la Hotel Public Co., Ltd. (Foreign)........... 54,000 34,768
Shinawatra Computer and Communications Public Co.,
Ltd. (Foreign)...................................... 102,800 492,282
Siam City Bank Public Co., Ltd. (Foreign)............. 319,100 215,087
Siam City Cement Public Co., Ltd. (Foreign)........... 90,600 331,775
<CAPTION>
SHARES VALUE+
------------ ------------
<S> <C> <C>
Siam Commercial Bank Public Co., Ltd. (Foreign)....... 1,000 $ 5,312
Siam Pulp & Paper Co., Ltd. (Foreign)................. 48,000 88,853
*Sino-Thai Engineering and Construction Public Co.,
Ltd. (Foreign)...................................... 21,200 31,992
Srithai Superware Public Co., Ltd. (Foreign).......... 21,000 70,141
TPI Polene Public Co., Ltd. (Foreign)................. 135,581 200,507
Tanayong Public Co., Ltd. (Foreign)................... 163,800 59,983
*Thai German Ceramic Industry Public Co., Ltd.
(Foreign)........................................... 58,000 33,259
Thai Glass Industries Public Co., Ltd. (Foreign)...... 60,000 159,356
Thai Military Bank Public Co., Ltd. (Foreign)......... 204,000 248,330
*Thai Packaging and Printing Public Co., Ltd.
(Foreign)........................................... 29,500 2,374
Thai Wah Public Co., Ltd. (Foreign)................... 21,000 11,620
*Unicord Public Co., Ltd. (Foreign)................... 85,000 1,368
------------
TOTAL COMMON STOCKS
(Cost $10,732,143)................................... 5,457,607
------------
INVESTMENT IN CURRENCY -- (0.0%)
*Thailand Baht (Cost $0).............................. 1
------------
TOTAL -- THAILAND
(Cost $10,732,143)................................... 5,457,608
------------
FACE
AMOUNT
------------
(000)
USA -- (1.4%)
TEMPORARY CASH INVESTMENTS -- (1.4%)
Repurchase Agreement, Chase Manhattan Bank N.A. 5.30%,
06/02/97 (Collateralized by U.S. Treasury Notes
6.25%, 07/31/98)
(Cost $3,014,000)................................... $ 3,014 3,014,000
------------
SHARES
------------
COMMON STOCKS -- (0.0%)
Turkiye Garanti Bankasi A.S. ADR (Representing 200
Shares)
(Cost $81,114)...................................... 9,000 36,000
------------
TOTAL -- USA
(Cost $3,095,114).................................... 3,050,000
------------
TOTAL INVESTMENTS -- (100.0%)
(Cost $139,232,399).................................. $210,242,810
------------
------------
- --------------------
+See Note B to Financial Statements.
*Non-Income Producing Securities
</TABLE>
See accompanying Notes to Financial Statements.
5
<PAGE>
DIMENSIONAL EMERGING MARKETS FUND INC.
STATEMENT OF ASSETS AND LIABILITIES
MAY 31, 1997
(UNAUDITED)
(AMOUNTS IN THOUSANDS, EXCEPT SHARE AMOUNTS)
<TABLE>
<S> <C>
ASSETS:
Investments at Value (Cost of $139,233).............................................. $ 210,243
Cash................................................................................. 41
Receivable for Dividends and Interest................................................ 477
Other Assets......................................................................... 35
---------
Total Assets................................................................... 210,796
---------
LIABILITIES:
Deferred Chilean Repatriation Tax.................................................... 2,500
Accrued Expenses..................................................................... 145
---------
Total Liabilities.............................................................. 2,645
---------
NET ASSETS applicable to 11,047,491 shares outstanding $.01 par value shares
(authorized 200,000,000 shares)...................................................... $ 208,151
---------
---------
NET ASSET VALUE........................................................................ $ 18.84
---------
---------
PUBLIC OFFERING PRICE PER SHARE........................................................ $ 18.93
---------
---------
NET ASSETS CONSIST OF:
Paid-In Capital.................................................................... $ 136,991
Undistributed Net Investment Income................................................ 2,026
Undistributed Net Realized Gain.................................................... 31
Accumulated Net Realized Foreign Exchange Loss..................................... (22)
Unrealized Net Foreign Exchange Gain............................................... 1
Deferred Chilean Repatriation Tax.................................................. (1,886)
Unrealized Appreciation of Investment Securities and Foreign Currency.............. 71,010
---------
Total Net Assets............................................................... $ 208,151
---------
---------
</TABLE>
See accompanying Notes to Financial Statements
6
<PAGE>
DIMENSIONAL EMERGING MARKETS FUND INC.
STATEMENT OF OPERATIONS
FOR THE SIX MONTHS ENDED MAY 31, 1997
(UNAUDITED)
(AMOUNTS IN THOUSANDS)
<TABLE>
<S> <C>
INVESTMENT INCOME
Dividends (Net of Foreign Taxes Withheld and Repatriation of $275).................. $ 3,167
Interest............................................................................ 103
---------
Total Investment Income......................................................... 3,270
---------
EXPENSES
Investment Advisory Services........................................................ 477
Accounting & Transfer Agent Fees.................................................... 95
Custodian's Fees.................................................................... 263
Legal Fees.......................................................................... 27
Audit Fees.......................................................................... 7
Directors' Fees and Expenses........................................................ 19
Organization Costs.................................................................. 25
Other............................................................................... 23
---------
Total Expenses.................................................................. 936
Less: Expenses Waived............................................................... (382)
---------
Net Expenses........................................................................ 554
---------
NET INVESTMENT INCOME............................................................... 2,716
---------
NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS AND FOREIGN CURRENCY
Net Realized Gain on Investment Securities.............................................. 37
Net Realized Loss on Foreign Currency Transactions...................................... (22)
Change in Unrealized Appreciation (Depreciation) of:
Investment Securities and Foreign Currency.......................................... 31,067
Deferred Chilean Repatriation Tax................................................... (113)
Translation of Foreign Currency Denominated Amounts................................. (3)
---------
NET GAIN ON INVESTMENT SECURITIES AND FOREIGN CURRENCY.......................... 30,966
---------
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS.................................... $ 33,682
---------
---------
</TABLE>
See accompanying Notes to Financial Statements
7
<PAGE>
DIMENSIONAL EMERGING MARKETS FUND INC.
STATEMENTS OF CHANGES IN NET ASSETS
(AMOUNTS IN THOUSANDS)
<TABLE>
<CAPTION>
YEAR
SIX MONTHS ENDED
ENDED MAY NOV. 30,
31, 1997 1996
----------- ---------
(UNAUDITED)
<S> <C> <C>
INCREASE (DECREASE) IN NET ASSETS
Operations:
Net Investment Income................................................... $ 2,716 $ 2,844
Net Realized Gain on Investment Securities.............................. 37 215
Net Realized Loss on Foreign Currency Transactions...................... (22) (54)
Change in Unrealized Appreciation (Depreciation) of:
Investment Securities and Foreign Currency............................ 31,067 16,151
Deferred Chilean Repatriation Tax..................................... (113) (1,773)
Translation of Foreign Currency Denominated Amounts................... (3) 32
----------- ---------
Net Increase in Net Assets Resulting from Operations................ 33,682 17,415
----------- ---------
Distributions From:
Net Investment Income................................................... (506) (3,037)
Net Realized Gain....................................................... (209) (2,627)
----------- ---------
Total Distributions................................................. (715) (5,664)
----------- ---------
Capital Share Transactions (1):
Shares Issued in Lieu of Cash Distributions............................. 715 5,664
----------- ---------
Total Increase...................................................... 33,682 17,415
----------- ---------
NET ASSETS
Beginning of Period..................................................... 174,469 157,054
----------- ---------
End of Period........................................................... $ 208,151 $ 174,469
----------- ---------
----------- ---------
(1) SHARE AMOUNTS:
Shares Issued in Lieu of Cash Distributions............................. 47 366
----------- ---------
----------- ---------
</TABLE>
See accompanying Notes to Financial Statements
8
<PAGE>
DIMENSIONAL EMERGING MARKETS FUND INC.
FINANCIAL HIGHLIGHTS
(FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD)
<TABLE>
<CAPTION>
YEAR YEAR YEAR FEB. 2
SIX MONTHS ENDED ENDED ENDED TO
ENDED MAY NOV. 30, NOV. 30, NOV. 30, NOV. 30,
31, 1997 1996 1995 1994 1993
----------- -------- -------- -------- --------
(UNAUDITED)
<S> <C> <C> <C> <C> <C>
Net Asset Value, Beginning of
Period........................... $ 15.86 $ 14.77 $ 17.10 $ 15.18 $ 10.00
----------- -------- -------- -------- --------
INCOME FROM INVESTMENT OPERATIONS
Net Investment Income............ 0.26 0.26 0.28 0.19 0.16
Net Gains on Securities (Realized
and Unrealized)................ 2.79 1.36 (2.29) 1.94 5.53
----------- -------- -------- -------- --------
Total from Investment
Operations..................... 3.05 1.62 (2.01) 2.13 5.69
----------- -------- -------- -------- --------
EFFECT OF CAPITAL CHANGES.......... -- -- -- -- (0.46)
----------- -------- -------- -------- --------
LESS DISTRIBUTIONS
Net Investment Income............ (0.05) (0.28) (0.29) (0.20) (0.05)
Net Realized Gain................ (0.02) (0.25) (0.03) (0.01) --
----------- -------- -------- -------- --------
Total Distributions.............. (0.07) (0.53) (0.32) (0.21) (0.05)
----------- -------- -------- -------- --------
Net Asset Value, End of Period..... $ 18.84 $ 15.86 $ 14.77 $ 17.10 $ 15.18
----------- -------- -------- -------- --------
----------- -------- -------- -------- --------
Total Investment Return (a)........ 17.86%# 12.41% (11.73)% 14.02% 52.32%#
Net Assets, End of Period
(thousands)...................... $208,151 $174,469 $157,054 $153,095 $134,232
Ratio of Expenses to Average Net
Assets........................... 0.57%*(b) 0.59%(b) 0.58%(b) 0.80%(b) 0.73%*
Ratio of Net Investment Income to
Average Net Assets............... 2.81%*(b) 1.64%(b) 2.10%(b) 1.18%(b) 1.59%*
Portfolio Turnover Rate............ 0.23%* 0.29% 5.73% 0.26% 0.28%*
Average Commission Rate (c)........ $ 0.0000 $ 0.0016 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, 1997 and November 30, 1996, 1995
and 1994 would have been 0.97%, 0.99%, 0.98% and 0.88%, respectively, and
the ratios of net investment income to average net assets for the periods
ended May 31, 1997 and November 30, 1996, 1995 and 1994 would have been
2.41%, 1.24%, 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
9
<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. The preparation of financial statements in accordance with generally
accepted accounting principles may require management to make estimates and
assumptions that affect the reported amounts and disclosures in the financial
statements. Actual results could differ from those estimates.
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
quotations are not readily available (including restricted securities which are
subject to limitations as to their sale) are valued in good faith at fair value
using methods determined by 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 provision for federal taxes 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.
All open repurchase agreements were entered into on May 30, 1997.
5. FOREIGN MARKET RISKS: Investments in foreign markets may involve
certain considerations and risks not typically associated with investments in
the United States, including the possibility of future political and economic
10
<PAGE>
developments and the level of foreign governmental supervision and regulation of
foreign securities markets. These markets are generally 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.
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 fund has
recorded deferred repatriation taxes relating to net unrealized appreciation on
its investment in Chile.
C. INVESTMENT ADVISOR:
Dimensional Fund Advisors Inc. (the "Advisor") provides investment advisory
services to the Fund. For the six months ended May 31, 1997, 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 six months ended May 31, 1997, the Fund made the following purchases
and sales of investment securities other than U.S. Government securities and
temporary cash investments (amounts in thousands):
<TABLE>
<S> <C>
Purchases.................................................... $ 2,332
Sales........................................................ 223
</TABLE>
E. INVESTMENT TRANSACTIONS:
At May 31, 1997, 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):
<TABLE>
<S> <C>
Gross Unrealized Appreciation.............................. $ 85,413
Gross Unrealized Depreciation.............................. (14,403)
---------
Net........................................................ $ 71,010
---------
---------
</TABLE>
F. LINE OF CREDIT
In July, 1996, the Fund together with other DFA-advised portfolios, entered
into a $50 million unsecured line of credit with its domestic custodian bank.
The portfolio is permitted to borrow, subject to its investment limitations, up
to a maximum of $50 million. Borrowings under the line are charged interest at
the current overnight federal funds rate plus a variable rate determined at the
date of borrowing. Each portfolio is individually, and not jointly liable for
its particular advances under the line. There is no commitment fee on the unused
portion of the line of credit. There were no borrowings under the line of credit
by the Portfolio during the six months ended May 31, 1997.
G. 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.
11
<PAGE>
DESCRIPTION OF THE FUND'S DIVIDEND REINVESTMENT PLAN
(UNAUDITED)
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.
12
