August 18, 1995
Dear Shareholder:
We are pleased to present the Semi-Annual Report for the AMT
Capital Fund, reflecting its operations for the first six months of 1995.
The Portfolios in the Fund, along with other mutual funds distributed by
AMT Capital Services, offer investors an opportunity to gain access to
some of the nation's top investment advisers at lower, institutional fee
levels. As of today, net assets in the AMT Capital Fund were $71.7
million, more than double the level at year-end.
The Money Market Portfolio continues to outperform its
benchmark, as it has consistently done in every month since January 1994.
Favorable duration management and yield curve positioning account for
the Portfolio's performance and its return compares favorably with that of
similar funds.
The HLM International Equity Portfolio, whose company-focused
"bottom-up" approach can produce short-term performance volatility
relative to the benchmark, underperformed in the first quarter as markets
were subdued outside the U.S. and as markets discounted strong earnings
reports. In the second quarter, market valuations reflected continuing
strong earnings and the Portfolio substantially outperformed its
benchmark. Net performance for the year-to-date and the trailing 12-
month period is above its benchmark. The NAV for the HLM
International Equity Portfolio is now published daily in the New York
Times, the Wall Street Journal and other daily periodicals (NASDAQ
symbol - AMTHX).
We are actively exploring opportunities to add additional
Portfolios and to grow existing ones. We greatly appreciate your interest
and participation in the AMT Capital Fund. We welcome the opportunity
to discuss the investment approach, performance and merits of this or any
other fund distributed by AMT Capital Services. Please note that we have
enclosed a copy of Eleanor Hoagland's Investment Outlook. Do not
hesitate to contact us with questions or comments regarding these reports,
or if we can be of assistance in any manner.
Sincerely,
by: \s\ Alan M. Trager
Alan M. Trager
President
Table of Contents
HLM International Equity Portfolio - Overview 1
HLM International Equity Portfolio - Statement of Net Assets 2
Money Market Portfolio - Overview 5
Money Market Portfolio - Statement of Net Assets 6
Statement of Operations 7
Statement of Changes in Net Assets 8
Financial Highlights 9
Notes to Financial Statements 11
HLM International Equity Portfolio
Graph: Comparison of change in value of $10,000 investment in HLM
International Equity Portfolio and the MSCI World Ex U.S.A. Index (Net)
where the Y-axis ranges from $9,000 to $10,434 and the X-axis ranges
from $9,000 to $11,500.
The HLM International Equity Portfolio rose by 6.44% during the first
six months of the year, outperforming its benchmark, the MSCI World-ex USA
Index, which rose 2.91%. Net assets rose to $37.8 million. The Portfolio's
objectives are to seek long-term capital appreciation through investments in
companies based outside the United States.
Developments in the First Quarter
The Portfolio fell in value during the first quarter, underperforming its
benchmark. Returns in local markets were mainly flat to negative, especially in
Japan and Germany. While the companies in which the Portfolio was invested
generally continued to report very strong earnings, market valuations were
considerably less robust. Some of the smaller markets in which the Portfolio
invests were hard hit by the Mexican crisis. A relatively high cash position
at the start of the quarter and limited exposure to the Japanese markets were
positive factors but were not sufficient to overcome low valuations across
markets. New purchases included Development Bank of Singapore,
Muenchener Rueckversicherungs-Gesellschaft, Rentokil Group, Wolters
Kluwer N.V., and Hong Kong and China Gas. Pan American Beverages and
Jardine Strategic Holdings were sold.
Developments in the Second Quarter
In contrast to the first quarter, the Portfolio significantly outperformed
the benchmark in the second quarter. Markets recovered from the weakness of
the first few months of the year, while more stable currency rates provided a
positive underpinning for longer-term markets. The Portfolio at June 30 held
some 44 companies in 18 countries. New purchases included Canon,
PartnerRe, IHC Caland N.V., Imperial Oil and Astra AB while positions in
Makita Corp. and Hong Kong and China Gas were sold.
HLM International Equity Portfolio - Statement of Net Assets
June 30, 1995 (Unaudited)
Shares Values
Long-Term Investments - 92.0%
Equities - 88.9%
Argentina - 1.3%
Quilmes Industries S.A. (Consumer Non-Cyclical)
(Cost - $532,676) 24,900 $ 485,550
Bermuda - 1.1%
PartnerRe Holdings Ltd. (Credit Sensitive)
(Cost - $367,992) 15,200 397,100
Canada - 1.9%
Imperial Oil Ltd. (Natural Resources)
(Cost - $750,704) 19,600 727,650
France - 8.2%
Cie Generale des Eaux (Financial) 12,330 1,374,383
Coflexip - ADR (Natural Resources) 24,600 624,225
Financiere et Industrielle Gaz Et Eaux (Consumer Cyclical) 1,380 538,384
IDIA (Consumer Non-Cyclical) 20,280 552,160
IDIA Rights expiring 9/29/95 (Consumer Non-Cyclical)* 7,880 0
Total (Cost - $3,064,094) 3,089,152
Germany - 9.6%
Deutsche Bank AG (Credit Sensitive) 15,200 738,034
Hochtief AG (Basic Industry) 1,450 798,338
Krones AG Preferred (Capital Goods & Technology) 1,530 728,519
Linde AG (Basic Industry) 1,556 921,907
Muenchener Rueckversicherungs-Gesellschaft
(Credit Sensitive) 195 426,915
Total (Cost - $3,684,326) 3,613,713
Hong Kong - 4.8%
Hutchison Whampoa Ltd. (Consumer Cyclical) 282,000 1,363,103
Johnson Electric Holdings-500
(Capital Goods & Technology) 223,500 450,621
Total (Cost - $1,791,086) 1,813,724
Indonesia - 1.0%
P.T. Wicaksana Overseas International
(Consumer Non-Cyclical)*
Total (Cost - $359,617) 139,000 390,270
Japan - 11.6%
Canon, Inc. (Capital Goods & Technology) 54,000 878,773
Canon Sales Co., Inc. (Capital Goods & Technology) 29,000 803,657
Ito Yokado Co., Ltd. (Consumer Cyclical) 14,000 737,972
Mitsubishi Heavy Industries Ltd.
(Capital Goods & Technology) 145,000 984,913
Nippon Denso (Basic Industry) 54,000 980,662
Senshukai Co. Warrants Expiring 7/18/95
(Consumer Cyclical)* 10 5
Total (Cost - $4,507,564) 4,385,982
Malaysia - 4.2%
Nestle (Malaysia) Berhad (Consumer Non-Cyclical) 99,000 $ 759,667
Nylex (Malaysia) Berhad (Basic Industry) 262,000 811,702
Total (Cost - $1,346,533) 1,571,369
Netherlands - 9.1%
IHC Caland N.V. (Basic Industry) 13,800 391,995
Randstad Holdings N.V. (Consumer Cyclical) 12,350 873,828
Royal Dutch Petroleum Co. - ADR (Natural Resources) 11,600 1,413,750
Wolters Kluwer N.V. (Consumer Non-Cyclical) 8,800 776,604
Total (Cost - $3,272,638) 3,456,177
Norway - 3.8%
Norsk Hydro AS - ADR (Natural Resources) 18,133 757,053
Unitor Ships Service - ADR (Basic Industry) 39,800 690,769
Total (Cost - $1,411,077) 1,447,822
Singapore - 5.5%
Development Bank of Singapore Ltd. (Credit Sensitive) 70,000 796,824
Keppel Corp. Ltd. (Basic Industry) 159,000 1,297,679
Total (Cost - $2,085,796) 2,094,503
South Africa - 1.9%
Liblife Strategic Investments Ltd. (Pooled Funds)
Total (Cost - $708,814) 218,000 734,573
Spain - 2.9%
Banco Intercontinental ESPA (Financial)
Total (Cost - $1,093,188) 12,300 1,108,016
Sweden - 2.0%
Astra AB (Consumer Non-Cyclical)
Total (Cost - $730,860) 25,000 752,568
Switzerland - 12.0%
BBC AG (Brown Boveri) (Capital Goods & Technology) 6,500 1,305,652
Nestle AG - Sponsored ADR (Consumer Non-Cyclical) 23,800 1,238,423
Sika Finanz AG (Basic Industry) 2,170 688,739
SGS Societe Generale de Surveillance Holding SA-Bearer
Shares (Consumer Cyclical) 300 521,739
SGS Societe Generale de Surveillance Holding SA-Reg.
Shares (Consumer Cyclical) 2,400 772,174
Total (Cost - $4,287,148) 4,526,727
United Kingdom - 8.0%
Blenheim Group p.l.c. (Consumer Cyclical) 188,000 756,362
British Sky Broadcasting - ADR (Consumer Cyclical)* 18,800 491,150
Hanson p.l.c. - ADR (Consumer Cyclical) 58,000 1,022,250
Rentokil Group p.l.c. (Consumer Non-Cyclical) 179,000 768,554
Total (Cost - $3,031,939) 3,038,316
Total Equities (Cost-$33,026,052) 33,633,212
Bonds - 3.1%
Bangkok Bank Public Co. Convertible Bond (Thailand),
3.25% due 03/03/04 (Finance)
(Cost - $1,098,245) $1,125,000 $1,147,500
Total Long-Term Investments (Cost - $34,124,297) 34,780,712
Short-Term Investments - 36.3%
Harris Bank Time Deposit, 5.86% due 7/3/95 8,395,400 8,395,400
Prudential Bache Securities Repurchase Agreement,
5.78% due 7/03/95
Issued 6/30/95 (Collateralized by $5,491,495 of FNMA
Strip Tranche, 9.0% due 9/01/22) 5,331,336 5,331,336
Total Short-Term Investments (Cost - $13,726,736) 13,726,736
Total Investments - 128.3% (Cost - $47,851,033) 48,507,448
Other Assets and Liabilities - (28.3%)
Receivable from investment adviser 41,378
Foreign currency holdings (Cost - $1,069,671) 1,075,697
Other assets 202,770
Payables for Securities Purchased -11,901,412
Other Liabilities -106,207
Other Assets and Liabilities, net -10,687,774
Net Assets - 100.0%
Applicable to 3,664,546 outstanding $.001 par value shares
(authorized 250,000,000 shares) $37,819,674
Net Asset Value Per Share $10.32
Components of Net Assets as of June 30, 1995 were as follows:
Capital Stock at par value ($.001) $3,665
Capital Stock in excess of par value 37,127,256
Undistributed investment income, net 220,870
Accumulated net realized (loss) on investments and foreign currency-
related transactions -156,857
Temporary overdistribution of net realized gain on investments -10,017
Net unrealized appreciation on investments and on assets and
liabilities denominated in foreign currencies 634,757
$37,819,674
*Non-income producing securities
See Notes To Financial Statements
Money Market Portfolio
Graph: Comparison of change in value of $10,000 investment in Money Market
Portfolio and the IBC/Donoghue's Money Market Fund Average where the
Y-axis ranges from $10,000 to $10,759 and the X-axis ranges from 11/1/93 to
6/30/95.
The Money Market Portfolio provided a total return of 2.87%
outperforming its benchmark, the Donoghue's Money Market Fund Average,
by 14 basis points. The Portfolio invests in high-quality short-term money
market instruments. Its objective is to seek current income, liquidity and the
maintenance of a stable net asset value. Net assets were $23.0 million as of
June 30, 1995.
Developments in the First Quarter
The Portfolio outperformed its benchmark due to favorable yield curve
and duration exposures. Interest rates declined despite a well-anticipated
tightening by the Fed. The short-term yield curve flattened. The significant
decline in the dollar against the mark and yen had a more limited effect than
might have been expected, as domestic data turned decidedly weaker as the
quarter progressed.
Developments in the Second Quarter
Rates continued to decline abruptly through the second quarter.
Interest rate volatility soared and the yield curve continued to flatten. The
Portfolio was well positioned to benefit from these changes, although non-
Treasury holdings detracted a bit from performance as spreads widened.
Money Market Portfolio - Statement of Net Assets
June 30, 1995 (Unaudited)
Face Amount Value
Bank Obligations - 24.2%
Chemical Bank BA, 5.9% due 8/8/95 $1,000,000 $ 993,772
Bank of America Bank Note, 5.935% due 9/21/95 1,000,000 1,000,000
Mellon Bank Bank Note, 6.24% due 11/1/95 1,000,000 1,000,000
Canadian Imperial Bank Yankee CD, 6.07% due 8/15/95 1,000,000 1,000,047
Societe Generale Yankee CD, 6% due 8/14/95 1,000,000 1,000,000
Republic Natl Bank New York London Time Deposit,
6.375% due 7/3/95 591,000 591,000
Total (Cost - $5,584, 819) 5,584,819
Commercial Paper - 62.6%*
Abbey National N.A., 5.86% due 9/21/95 1,000,000 986,652
At&T Capital Corp, 6% due 8/11/95 350,000 347,608
Bass Finance (C.I.) Ltd, 5.87% due 9/21/95 1,000,000 986,630
Cheltenham & Gloucester, 6.02% due 7/18/95 1,000,000 997,157
Coca Cola Company, 5.95% due 11/3/95 1,000,000 979,340
Dupont (E.I.) De Nemours & Co., 5.85% due 9/21/95 1,000,000 986,675
Emerson Electric Co, 5.87% due 8/11/95 1,000,000 993,315
General Electric Capital Corp, 5.94% due 8/2/95 1,000,000 994,720
Golden Peanut Corp, 5.7% due 10/5/95 1,000,000 984,800
Hanson Finance, 5.87% due 9/14/95 1,000,000 987,771
Kellogg Co, 5.97% due 8/1/95 232,000 230,791
RTZ America Inc., 5.95% due 7/26/95 1,000,000 995,868
Student Loan Corporation, 5.93% due 8/1/95 1,000,000 994,894
Kingdom Of Sweden, 6.05% due 10/20/95 1,000,000 981,346
Unilever Capital Corp, 5.75% due 9/22/95 1,000,000 986,743
U.S. West Communication, 5.87% due 9/14/95 1,000,000 987,771
Total (Cost - $14,422,081) 14,422,081
U.S. Government Agency Obligations - 12.9%
FNMA Discount Note, 5.8% due 9/14/95 1,000,000 987,917
FHLMC Discount Note, 5.8% due 9/1/95 2,000,000 1,980,022
Total (Cost - $2,967,939) 2,967,939
Total Investments - 99.7% (Cost - $22,974,839) 22,974,839
Other Assets and Liabilities - 0.3%
Receivable from investment adviser 12,277
Other assets 91,850
Other liabilities -32,898
Other Assets and Liabilities, net 71,229
Net Assets - 100.0%
Applicable to 23,035,277 outstanding $.001 par value shares
(authorized 1,000,000,000 shares) $ 23,046,068
Net Asset Value Per Share $ 1.00
Components of Net Assets as of June 30, 1995 were as follows:
Capital Stock at par value ($.001) $ 23,035
Capital Stock in excess of par value 23,012,242
Temporary overdistribution of net investment income -487
Accumulated net realized gain on investments 11,278
$ 23,046,068
* Interest rate shown represents yield to maturity at date of purchase
See Notes To Financial Statements
Statement of Operations
For the Six Months Ended 6/30/95 (Unaudited)
HLM International Money Market
Equity Portfolio Portfolio
Investment Income
Interest $ 67,118 $ 669,300
Dividends (net of withholding taxes of $29,837) 232,214 -
Total investment income 299,332 669,300
Expenses
Investment advisory fees 49,989 27,343
Administration fees 7,307 11,037
Custodian fees 34,469 13,411
Shareholder recordkeeping fees 9,855 2,093
Legal fees 20,911 2,354
Audit fees 13,759 12,593
Directors' fees and expenses 2,541 2,541
Insurance expense 4,136 7,125
Amortization of organization costs - 8,755
Federal and srate registration filing fees 15,874 4,227
Other fees and expenses 1,868 2,691
Total operating expenses 160,709 94,170
Waiver of investment advisory and administration
fees and reimbursement of other expenses -96,749 -50,421
Total operating expenses, net 63,960 43,749
Investment income, net 235,372 625,551
Realized and unrealized gain (loss) on investments
and foreign currency-related transactions
Net realized gain (loss) from investments -93,374 21,729
Net realized (loss) from foreign currency-related
transactions -20,469 -
Net unrealized appreciation on investments 721,850 -
Net unrealized (depreciation) on translation of assets
and liabilities denominated in foreign c -22,969 -
Realized and unrealized gain on investments
and foreign currency-related transaction 585,038 21,729
Net increase in net assets
resulting from operations $ 820,410 $ 647,280
See Notes To Financial Statements
<TABLE>
Statement of Changes in Net Assets
(Unaudited)
<S> <C> <C> <C> <C>
HLM International Equity Portfolio Money Market Portfolio
For the Six For the Period For the Six For the Year
Months Ended from 5/11/94* to Months Ended Ended
6/30/95 12/31/94 6/30/95 12/31/94
Increase (Decrease) in Net Assets From Operations
Investment income, net $235,372 $30,787 $625,551 $839,278
Net realized gain (loss) from investments and
foreign currency-related -113,843 -43,014 21,729 -3,723
Net unrealized appreciation (depreciation) on
investments and on translation of assets and
liabilities denominated 698,881 -64,124 - -
Net increase (decrease) in net assets resulting
from operations 820,410 -76,351 647,280 835,555
Distributions to Shareholders From
Investment income, net 18,179 27,110 625,551 839,278
In excess of investment income, - - 487 -
Temporary overdistribution of net realized gain
on investments - 10,017 - 6,728
Total distributions 18,179 37,127 626,038 846,006
Capital Share Transactions, Net 28,113,565 9,017,356 1,018,685 19,680,959
Total increase in net assets 28,915,796 8,903,878 1,039,927 19,670,508
Net Assets
Beginning of period 8,903,878 - 22,006,141 2,335,633
End of period $37,819,674 $8,903,878 $23,046,068 $22,006,141
Undistributed (Overdistributed) Investment
Income, Net $220,870 $3,677 $(487) $ -
<FN>
* Commencement of operation
See Notes To Financial Statements
</TABLE>
Financial Highlights
(Unaudited)
HLM International Equity Portfolio
For the Six For the Period
Months Ended from 5/11/94*
6/30/95 12/31/94
Per Share Data
Net asset value, beginning of period $9.709 $10.000
Income From Investment Operations
Investment income, net 0.071 0.036
Net realized and unrealized gain (loss) on
investments and foreign currency-
related transactions 0.555 -0.283
Total from investment operations 0.626 -0.247
Less Distributions
From investment income, net 0.015 0.032
In excess of net realized gain on
investments - 0.012
Total distributions 0.015 0.044
Net asset value, end of period $10.320 $9.709
Total Return 6.44%(b) -2.47%(b)
Ratios/Supplemental Data
Net assets, end of period $ 37,819,674 $ 8,903,878
Ratio of expenses to average net assets 1.00%(a) 0.95%(a)
Decrease in above ratio due to waiver
of investment advisory and administration
services fees and reimbursement of
other expenses 1.41%(a) 1.33%(a)
Ratio of net investment income to
average net assets 3.53%(a) 1.13%(a)
Portfolio turnover 11.59%(b) 27.49%(b)
Money Market Portfolio
For the Six For the For the Period
Months Ended Year Ended from 11/1/93*
6/30/95 12/31/94 12/31/93
Per Share Data
Net asset value, beginning of period $ 1.000 $ 1.000 $1.000
Income From Investment Operations
Investment income, net 0.028 0.04 0.004
Net realized and unrealized gain (loss) on
investments 0.000 0.001(d) -
Total from investment operations 0.028 0.041 0.004
Less Distributions
From investment income, net 0.028 0.040 0.004
In excess of investment income, net 0.000 - -
In excess of net realized gain on
investments - 0.001 -
Total distributions 0.028 0.041 0.004
Net asset value, end of period $1.000 $1.000 $1.000
Total Return 5.74%(a) 4.13% 2.69%(a)
Ratios/Supplemental Data
Net assets, end of period $23,046,068 $22,006,141 $2,335,633
Ratio of expenses to average net assets 0.40%(a) 0.40% 0.40%(a)
Decrease in above ratio due to waiver
of investment advisory and administration
services fees and reimbursement of
other expenses 0.46%(a) 0.64% 25.54%(a)
Ratio of net investment income to
average net assets 5.72%(a) 4.16% 2.67%(a)
(a) Annualized
(b) Not annualized
(c) Commencement of operations
(d) Includes the effect of net realized gains prior to significant increase
in shares outstanding.
See Notes To Financial Statements
Notes To Financial Statements
June 30, 1995 (Unaudited)
1. Organization
AMT Capital Fund, Inc. (the "Fund") was organized as a Maryland corporation on
August 3, 1993 and is registered under the Investment Company Act of 1940, as
amended, as an open-end management investment company. The Money Market
Portfolio commenced operations on November 1, 1993 and the HLM International
Equity Portfolio commenced operations on May 11, 1994. The Fund currently has
two active Portfolios. The costs incurred by the Fund in connection with the
organization and initial registration are being amortized in the Money Market
Portfolio on a straight-line basis over a sixty-month period. The unamortized
balance of organizational expenses at June 30, 1995 was $58,926.
2. Summary of Significant Accounting Policies
Securities
All securities transactions are recorded on a trade date basis. Interest
income and expense are recorded on the accrual basis. Dividend income is
recorded on the ex-dividend date. The Fund amortizes discount or premium
on a daily basis to interest income. The Fund uses the specific identification
method for determining gain or loss on sales of securities.
Income Tax
There is no provision for Federal income or excise tax since each Portfolio has
elected or will elect to be taxed as a regulated investment company ("RIC") and
therefore complies with the requirements of Subchapter M of the Internal Revenue
Code applicable to RICs and has distributed all of its taxable income.
Valuation
All investments in the HLM International Equity Portfolio are valued daily at
their market price, which results in unrealized gains or losses. Securities
traded on an exchange are valued at their last sales price on that exchange.
Securities for which over-the-counter market quotations are available are
valued at the latest bid price. Deposits and repurchase agreements and reverse
repurchase agreements are generally valued at their cost plus accrued interest.
The value of other investments is determined under procedures established by
the Fund's Board of Directors. All investments in the Money Market Portfolio
are valued daily on an amortized cost basis, which approximates fair value and
is consistent with Rule 2a-7 of the Investment Company Act of 1940.
Expenses
Expenses directly attributed to each Portfolio in the Fund are charged to that
Portfolio's operations; expenses which are applicable to all Portfolios are
allocated among them based on average daily net assets.
Dividends to Shareholders
It is the policy of the HLM International Equity Portfolio to declare dividends
on all of its net investment income on a quarterly basis. Net investment
income dividends are payable and reinvested quarterly. It is the policy of
the Money Market Portfolio to declare dividends daily on all of its net
investment income. Net investment income dividends are payable and
reinvested monthly. Net short-term and long-term capital gains distributions
for both Portfolios, if any, are normally distributed on an annual basis.
Dividends from net investment income and distributions from realized gains from
investment transactions have been determined in accordance with income tax
regulations and may differ from net investment income and realized gains
recorded by the Fund. These differences are due primarily to differing
treatments for foreign currency-related transactions and losses deferred due
to tax regulations and are recorded as temporary overdistributions of net
realized gain on investments or investment income, net, in the statement of
changes in net assets.
Currency Translation
Assets and liabilities denominated in foreign currencies and commitments under
forward exchange currency contracts are translated into U.S. dollars at the
mean of the quoted bid and asked prices of such currencies against the U.S.
dollar.
Purchases and sales of portfolio securities are translated at the rates of
exchange prevailing when such securities were acquired or sold.
Income and expenses are translated at exchange rates prevailing when accrued.
The Fund does not isolate that portion of the results of operations resulting
from changes in foreign exchange rates on investments from the fluctuations
arising from changes in market prices of securities held. Such fluctuations
are included with the net realized and unrealized gain or loss from investments.
Net realized gains and losses from foreign currency-related transactions arise
from sales and maturities of short-term securities, sales of foreign currency,
currency gains or losses realized between the trade and settlement dates on
securities transactions, the difference between the amounts of dividends,
interest, and foreign withholding taxes recorded on the Fund's books, and
the U.S. dollar equivalent of the amounts actually received or paid. Net
unrealized appreciation on translation of assets and liabilities denominated
in foreign currencies arise from changes in the value of assets and liabilities
other than investments in securities at the period end, resulting from changes
in the exchange rate. At June 30, 1995, the balance of net unrealized
(depreciation) related to the changes in the exchange rate in the value of
assets and liabilities other than investments was ($32,494).
3. Investment Advisory Agreement and Affiliated Transactions
The Fund's Board of Directors has approved investment advisory agreements (the
"Agreements") with the Investment Advisers. The investment advisory fees to be
paid the Investment Advisers are computed daily at an annual rate of 0.75% of
average daily net assets of the HLM International Equity Portfolio and 0.25% of
the average daily net assets of the Money Market Portfolio. The fees for both
Portfolios are payable monthly. The Investment Advisers for the HLM
International Equity Portfolio and the Money Market Portfolio, Harding,
Loevner Management, L.P. ("HLM") and AMT Capital Advisers, Inc., respectively,
and the Fund's Administrator, AMT Capital Services, Inc., have voluntarily
agreed to waive the investment advisory fees and the administration fees. In
addition, the Investment Advisers have agreed to reimburse, if necessary, the
Portfolios for any excess expenses over 1.00% and 0.40%, respectively, (on an
annualized basis) of the HLM International Equity Portfolio's and the Money
Market Portfolio's average daily net assets. The Money Market Portfolio's
sub-adviser is paid sub-advisory fees from the Investment Adviser, not the
Portfolio. Directors' fees and expenses of $5,081 were paid for the six months
ended June 30, 1995 to directors who are not employees of the Investment
Advisers.
4. Investment Transactions
Purchase cost and proceeds from sales of investment securities, other than
short-term investments, for the six months ended June 30, 1995 totaled
$28,492,181 and $1,446,316, respectively, for the HLM International Equity
Portfolio.
The components of net unrealized appreciation (depreciation) of investments at
June 30, 1995 for each Portfolio were as follows:
Money HLM International
Market Equity
Portfolio Portfolio
Gross Unrealized Appreciation $ - $ 1,107,888
Gross Unrealized Depreciation -451,473
$ - $ 656,415
The cost of securities owned by the Portfolios at June 30, 1995 for Federal tax
purposes were substantially the same as for financial statement purposes.
The HLM International Equity Portfolio enters into forward foreign exchange
currency contracts in order to hedge its exposure to changes in foreign currency
exchange rates on its foreign portfolio holdings. A forward exchange contract
is a commitment to purchase or sell a foreign currency at a future date at a
negotiated forward rate. The gain or loss arising from the difference between
the cost of the original contracts and the closing of such contracts is
included in net realized gains or losses on foreign currency-related
transactions. Fluctuations in the value of forward foreign currency contracts
are recorded for book purposes as unrealized appreciation or depreciation on
translation of assets and liabilities denominated in foreign currencies. Risks
may arise from the potential inability of a counterparty to meet the terms of a
contract and from unanticipated movements in the value of a foreign currency
relative to the U.S. dollar.
The Fund enters into foreign currency transactions on the spot markets in order
to pay for foreign investment purchases or to convert to dollars the proceeds
from foreign investment sales or coupon interest receipts.
At June 30, 1995, the HLM International Equity Portfolio had the following
outstanding foreign exchange currency contracts, both to purchase and sell
foreign currencies on the forward and spot markets, as follows:
<TABLE>
<C> <S> <C> <C> <C>
Unrealized
Contract Cost/ Current Appreciation
Amount Proceeds Value (Depreciation)
Forward Foreign Exchange Buy Contracts
200,379 Swiss Francs maturing 7/31/95 $174,911 $174,291 $(620)
145,798 Deutche Mark maturing 7/31/95 105,383 105,492 109
25,629,245 Spanish Peseta maturing 7/31/95 211,759 211,744 -15
3,404,190 French Franc maturing 7/31/95 697,794 702,065 4,271
13,696 Great British Pounds maturing 7/3/95 21,977 21,779 -198
11,239 Great British Pounds maturing 7/4/95 18,034 17,872 -162
72,265 Great British Pounds maturing 7/5/95 114,518 114,909 391
78,849 Great British Pounds maturing 7/31/95 124,936 125,320 384
472,316 Netherlands Guilder maturing 7/31/95 304,622 305,482 860
151,575 Singapore Dollar maturing 7/3/95 315,815 315,659 -156
380,639 South African Commercial Rand
maturing 7/31/95 104,585 104,698 113
Forward Foreign Exchange Sell Contracts
15,600 Swiss Francs maturing 7/3/95 13,419 13,569 -150
9,300 Singapore Dollar maturing 7/3/95 6,644 6,661 -17
$4,810
</TABLE>
5. Capital Share Transactions
As of June 30, 1995, there were 250,000,000 shares of $.001 par value capital
stock authorized in the HLM International Equity Portfolio. Transactions in
capital stock for the HLM International Equity Portfolio were as follows for
the periods indicated:
Six Months Ended Period From May 11, 1994*
30-Jun-95 to December 31, 1994
Shares Amount Shares Amount
Shares sold 2,996,938 $30,463,084 924,387 $9,088,508
Shares issued related
to reinvestment of
dividends 1,453 14,394 2,971 28,848
2,998,391 30,477,478 927,358 9,117,356
Shares redeemed 250,920 2,363,913 10,283 100,000
Net Increase 2,747,471 $28,113,565 917,075 $9,017,356
* Commencement of Operations
5. Capital Share Transactions (cont'd)
As of June 30, 1995, there were 1,000,000,000 shares of $0.001 par value capital
stock authorized in the Money Market Portfolio. Transactions in capital stock
for the Money Market Portfolio were as follows for the periods indicated:
Six Months Ended Year Ended
30-Jun-95 December 31,1994
Shares Amount Shares Amount
Shares sold 4,096,554 $4,096,554 20,414,473 $ 20,414,473
Shares issued related to reinvestment
of dividends 625,279 625,279 796,922 796,922
4,721,833 4,721,833 21,211,395 21,211,395
Shares redeemed 3,703,148 3,703,148 1,530,436 1,530,436
Net increase 1,018,685 $1,018,685 19,680,959 $ 19,680,959
6. Repurchase and Reverse Repurchase Agreements
Each Portfolio may enter into repurchase agreements under which a bank or
securities firm that is a primary or reporting dealer in U.S. Government
securities agrees, upon entering into a contract, to sell U.S. Government
Securities to a Portfolio and repurchase such securities from the Portfolio
at a mutually agreed upon price and date.
Each Portfolio is also permitted to enter into reverse repurchase agreements
under which a primary or reporting dealer in U.S. Government securities
purchases U.S. Government securities from a Portfolio and the Portfolio agrees
to repurchase the securities at an agreed upon price and date.
Each Portfolio will engage in repurchase and reverse repurchase transactions
with parties selected on the basis of such party's creditworthiness.
Securities purchased subject to repurchase agreements must have an aggregate
market value greater than or equal to the repurchase price plus accrued
interest at all times. If the value of the underlying securities falls below
the value of the repurchase price plus accrued interest, the Portfolio will
require the seller to deposit additional collateral by the next business day.
If the request for additional collateral is not met, or the seller defaults
on its repurchase obligation, the Portfolio maintains the right to sell the
underlying securities at market value and may claim any resulting loss against
the seller. When a Portfolio engages in reverse repurchase transactions, the
Portfolio will maintain, in a segregated account with its custodian, securities
equal in value to those subject to the agreement.
Officers & Directors and Other Pertinent Information
Officers and Directors
Robert B. Allardice, III
Director of the Fund
Patricia A. Gammon
Director of the Fund
Alan M. Trager
President and Director of the Fund
Wiliam E. Vastardis
Secretary and Treasurer of the Fund
Carla E. Dearing
Vice President and Assistant Treasurer of the Fund
Investment Adviser
(HLM International Equity Portfolio)
Harding Loevner Management, L.P.
50 Division Street
Somerville, NJ 08876
Investment Adviser
(Money Market Portfolio)
AMT Capital Advisers, Inc.
430 Park Avenue
New York, New York 10022
Sub-Adviser
(Money Market Portfolio)
Fischer Francis Trees & Watts, Inc.
200 Park Avenue
New York, New York 10166
Administrator and Distributor
AMT Captial Services, Inc.
430 Park Avenue
New York, New York 10022
Custodian and Fund Accounting Agent
Investors Bank & Trust Company
P.O. Box 1537
Boston, MA 02205-1537
Legal Counsel
Dechert Price & Rhoads
1500 K Street, N.W.
Washington, D.C. 20005-1208
Independent Auditors
Ernst & Young LLP
787 Seventh Avenue
New York, NY 10019
