<PAGE> 1
THE ASIA TIGERS FUND, INC.
June 9, 1995
DEAR FUND SHAREHOLDER,
We are pleased to present you with the unaudited financial statements of the
Asia Tigers Fund, Inc. ("the Fund") for the first half of its second fiscal year
covering the period from November 1, 1994 to April 30, 1995.
As discussed in the Investment Advisor's report, the past six months have been a
volatile period for the Fund. Following the Mexican peso crisis in December of
1994, investors heavily sold emerging market equity and debt securities,
skeptical of the underlying fundamentals of all emerging markets. Despite the
obvious geographic distance between Asia and Mexico, the crisis pervaded the
Asian markets. These markets continued to consolidate through April of this year
and in May we saw many of these markets commence recoveries with the Hang Seng
leading the way. The return in investor confidence in the Asian markets has been
strongly reflected in the recent appreciation in the market price of the Fund.
Between April 30, 1995 and June 2, 1995, the Fund increased by 11.4% in net
asset value terms and by 21.6% in market price terms.
Over the course of the last six months, the Fund has continued to provide
investors with broad exposure to both the Asian pacific basin as well as the
Indian subcontinent. As of April 30, 1995 the Fund had 128 positions in 13
countries. The Investment Advisor's view of the political and economic
situations in each of the countries in which the Fund is invested should provide
you with an idea of why we underweight or overweight certain countries relative
to our benchmark, the MSCI Combined Asia Ex-Japan Free index.
In spite of the volatility the Fund has experienced in the past six months, we
created this Fund to allow investors to participate in the economic growth
throughout Asia and despite the hurdles of the past few months. During the years
ahead, we believe that the underlying economic fundamentals that initially
attracted us to the region will remain strong. We also believe the current
recovery will continue and provide attractive returns to our investors.
The Fund's net asset value is calculated weekly and published in The Wall Street
Journal every Monday under the heading "Closed End Funds." The Fund's NAV is
also published in The New York Times on Mondays and in Barron's on Saturdays.
The Fund is listed on the New York Stock Exchange, ticker symbol "GRR."
We thank you for your participation in the Fund. If you have any questions or
would like updates on the Fund, please call our toll-free number at
1-800-421-4777. This number also provides callers with a recorded monthly update
that reviews the markets in which the Fund invests as well as specific details
about the Fund, its portfolio, and performance.
Sincerely,
/s/ ALAN RAPPAPORT
ALAN RAPPAPORT
CHAIRMAN
1
<PAGE> 2
REPORT OF THE INVESTMENT ADVISOR
OVERVIEW
The six month period from November 1, 1994 to April 30, 1995 was a volatile one
for Asian equity markets, even as the U.S. market managed to move to new record
highs. With the exception of Bangladesh which was down 4%, all of the markets in
which the Fund invests fell between 12% and 34% during the six month period. Our
benchmark for the region, the MSCI Combined Asia Ex-Japan Free, fell 15.09%.
Although equity market valuations during the period were not unreasonable,
markets fell for several reasons. First, the U.S. Federal Reserve continued a
restrictive monetary policy in light of worries about an overheating U.S.
economy and the prospect of rising inflation. Successive increases in short term
interest rates were accompanied by rising yields on the U.S. long bond to 8%.
These rate changes prompted investors to shift assets towards fixed income
securities and away from emerging market equities.
From late 1994, a series of shocks and crises arose, making an uncomfortable
investment environment even worse. A sharply deteriorating trade balance in
Mexico precipitated a Mexican currency crisis which damaged not only the Mexican
equity market but investor sentiment towards all emerging markets. As a result,
emerging markets throughout the world suffered serious setbacks despite the fact
that the specific risks of Mexico did not apply to Asia's stronger, better
balanced economies. Hard on the heels of the Mexican crisis, Barings PLC,
Britain's oldest investment bank collapsed after losing over US$1 billion in
unauthorized futures and options transactions. Barings was a significant
emerging markets player and as a result, its demise added more negative news to
an already depressing backdrop. Another contributing factor to the period's
volatility was the sharp fall of the U.S. dollar against the Japanese yen as the
U.S. trade deficit with Japan grew larger.
We believe that the underlying economic strength of the Southeast Asian region
remains robust and healthy. In early April of this year, the Asian Development
Bank forecasted that Asia's developing countries will register average growth of
7.4% in 1995 and 7.6% in 1996; faster rates than any other region in the world.
The Bank noted that the strong economic growth, high rates of domestic savings,
foreign direct investment and sturdy macroeconomic management of most Asian
emerging markets make a Mexico-style meltdown of an Asian economy very unlikely.
We concur with that view.
PERFORMANCE
Net asset value per share was $11.36 on April 30, 1995, a drop of 18.21% for the
six month period. The Fund's total net asset value return for the same period
assuming reinvestment of dividends declined 16.43%. Dividends and distributions
of $0.205 were paid to shareholders during the period. While such negative
returns are both frustrating and disappointing for all of us, we believe that
strong economic growth and attractive valuations will re-assert their influence
and result in improved conditions in the coming six months to one year.
2
<PAGE> 3
COUNTRY ALLOCATION
During the six month period ended April 30, 1995, GRR attempted to reduce the
effect of volatility by maintaining a combination of higher cash reserves,
reducing exposure to two of the regions more volatile markets (Hong Kong and
Malaysia) and by holding a larger than normal weighting in convertible bonds. At
the same time, weightings in Thailand and Singapore were increased to reflect
relative improvement in these countries' outlooks. The charts below present the
changing picture of the Fund's asset allocation during the period under review
among our major markets.
<TABLE>
<S> <C>
GEOGRAPHICAL ALLOCATION AS OF OCTOBER 31, 1994 GEOGRAPHICAL ALLOCATION AS OF APRIL 30, 1995
HONG KONG 30.06 HONG KONG 20.83
PAKISTAN 1.45 PHILIPPINES 3.66
PHILIPPINES 3.01 INDIA 10.29
INDIA 10.58 SRI LANKA 0.97
SRI LANKA 1.15 KOREA 7.32
KOREA 7.99 INDONESIA 5.35
INDONESIA 5.95 THAILAND 14.08
THAILAND 12.16 BANGLADESH 0.60
BANGLADESH 0.64 MALAYSIA 9.37
MALAYSIA 11.45 PAKISTAN 1.88
CASH 0.04 SHORT TERM 8.58
TAIWAN 2.08 TAIWAN 2.72
SINGAPORE 9.69 SINGAPORE 12.96
CHINA 3.75 CHINA 1.39
</TABLE>
SELECTED COUNTRY COMMENTS
CHINA
US$3.2 MILLION, 1.4% OF THE FUND'S NAV, WAS INVESTED IN CHINA AS OF APRIL 30,
1995.
While the world has focused most of its attention on politics in China,
especially on who will succeed Mr. Deng, inflation has been coming down as the
government's austerity program takes effect and the prospects for a moderately
soft landing have improved. First quarter CPI was 23.9% vs 24.3% for the all of
1994. The trade account went from a deficit in the first quarter of 1994 to a
US$7 billion surplus in the first quarter of 1995. Against this backdrop of
slowly improving fundamentals, B shares are trading at modest valuations of 9.2
times 1995 earnings, and earnings growth remains high, though below peak levels.
We remain concerned about the political situation in China and are uncertain
whether a smooth transition from Mr. Deng will be possible. Ideology still plays
a major role in events in China and the potential for regression to the "old
ways" remains substantial, aggravated by the late development of acceptable
legal standards. The government under Jiang Zemin has recently embarked on an
anti-corruption campaign to improve his position but his ability to consolidate
power remains to be seen.
The Fund has limited its investments to a few, high quality companies in the
industrial sector. Most of the Fund's China exposure is from Hong Kong or Taiwan
based firms with major China activities. The Fund's top holding in China is
SHANGHAI DIESEL ENGINES, a producer of diesel engines for construction machinery
and heavy duty vehicles. In our opinion, the company has unusually high quality
management and is known for good information disclosure. We feel that it is one
of the best quality China B share companies available and an important part of
the Fund's China exposure.
3
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- --------------------------------------------------------------------------------
HONG KONG
US$47.7 MILLION, 20.8% OF THE FUND'S NAV, WAS INVESTED IN HONG KONG AS OF APRIL
30, 1995.
While corporate earnings growth in Hong Kong is slowing in 1995 from fairly high
levels, we believe that valuations remain relatively uncompelling. The major
banks have recently relaxed their mortgage rates and it appears that the worst
of the property price correction is behind us, especially given the peaking of
US interest rate pressure. The underweighting of the Fund to Hong Kong reflects
our concerns about slowing domestic consumer demand and the effect of a
potential power struggle in a post-Deng era. In an environment of somewhat
deteriorating fundamentals the Fund's Hong Kong exposure remains cautiously
positioned.
We have underweighted the property sector and overweighted the utilities sector.
HUTCHISON WHAMPOA LTD. is GRR's largest holding in Hong Kong as well as its
biggest portfolio holding as a percentage of total net assets. It is one of the
largest conglomerates in Hong Kong and is actively involved in five broad areas:
property, container terminals, retailing, telecommunications and energy &
resources. The company has a 50% share in two large Hong Kong housing
developments, a 64% stake in Hong Kong Terminals, 75% of the Port of Felixstowe
in the UK and 50% of Shanghai Container Terminal in mainland China. In Asia, the
company operates three large retail chains as well as paging and mobile phone
services in Hong Kong.
- --------------------------------------------------------------------------------
INDONESIA
US$12.3 MILLION, 5.4% OF THE FUND'S NAV, WAS INVESTED IN INDONESIA AS OF APRIL
30, 1995.
We believe Indonesia offers strong corporate profit growth and some of the most
attractive valuations in the region. The government remains committed to further
deregulation of domestic industries and offers strong direct investment
incentives. There have been consistently rising foreign investment approvals
which will underpin future growth. Savings rates remain high and infrastructure
investment continues as a top priority. Indonesia is a liquidity sensitive
market and should benefit from a perceived relaxation of upward interest rate
pressures.
The Fund is overweight in resource and industrial stocks while being underweight
in the banking and property sectors. In Indonesia, the Fund's largest position
is INDOCEMENT, Indonesia's largest cement producer with an installed capacity of
9.4 million tons. The company has a 52% share of the domestic cement market and
has also diversified into the food and property sectors. In our opinion,
Indocement will be a beneficiary of a construction and infrastructural boom in
Indonesia.
- --------------------------------------------------------------------------------
INDIA
US$23.6 MILLION, 10.3% OF THE FUND'S NAV, WAS INVESTED IN INDIA AS OF APRIL 30,
1995.
Although the economic fundamentals in India remain good, political uncertainties
have increased sharply. In our opinion, the long term stability of the current
government of Prime Minister Rao, the architect of India's dramatic economic
reform program, is in some doubt and there are concerns that successor
governments might be far less committed to the same principles of reform,
regardless of their rhetoric. Elections will be held by March next year and
there is likely to be market uncertainty until then. We firmly believe that all
political parties in India embrace the same broad commitment to
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economic reform and as a result, these changes are not in danger. Indeed, one
could argue that a different party in power would actually be able to move more
decisively on change. The Fund's exposure to India is likely to be reduced
during this period of uncertainty but our longer term outlook remains positive.
The Fund's largest position in India is in RELIANCE INDUSTRIES. The company
started as a textile manufacturer in 1968 and has been expanding aggressively
ever since. Today, Reliance is India's most fully integrated textile and
petrochemical company with a market capitalization in excess of US$2.9 billion.
Reliance has the largest production capacities in each of its product segments.
- --------------------------------------------------------------------------------
KOREA
US$16.8 MILLION, 7.3% OF THE FUND'S NAV, WAS INVESTED IN KOREA AS OF APRIL 30,
1995.
Korea competes head-to-head with Japan in autos, petrochemicals, electronics and
machinery. The appreciation of the yen vs the won has helped Korea's competitive
position but the value of that improvement has been eroded by the rise of the
won against the US dollar. The Korean economy is growing nicely with GNP
forecast to rise at least 8% in 1995 after 8.3% growth last year. There is a
concern in some quarters that the economy may be growing too fast and as a
result, there is the prospect of inflation. However, the government has kept
liquidity tight and interest rates high in order to try and keep inflation under
control.
In the past, Korea has limited foreign equity investment to 12% for most
companies, thus creating a two-tier market in many cases. On July 1, 1995,
foreign ownership limits will rise to 15%, a move likely to be well received by
foreigners and consistent with the importance of Korea as an economic force in
the region. Corporate profits were up 57% in 1994 and in our opinion, the large
blue chip exporters will likely see another 24% increase in 1995. Valuations in
Korea are historically cheap, but we believe the upside in the near-term is
going to be capped by high domestic interest rates.
The Fund's holdings are exclusively with large cap, blue chip companies which
are internationally competitive. The largest holding is YUKONG, Korea's only
fully integrated oil refiner and dominant market shareholder in petroleum and
lubricants. The company has been moving into higher value-added, low sulfur
light distillates and posted over 10% growth in sales for the 1994 fiscal year.
In addition, Yukong is the largest shareholder of Korea's only mobile phone
company, Korea Mobile Telecom. We are underweight with textile, construction and
securities companies.
- --------------------------------------------------------------------------------
MALAYSIA
US$21.5 MILLION, 9.4% OF THE FUND'S NAV, WAS INVESTED IN MALAYSIA AS OF APRIL
30, 1995.
The much awaited general election took place in April and the ruling UMNO party
won its biggest victory since independence. This was favorably perceived by most
investors as a strong signal of policy stability although our own view is more
circumspect. GNP growth of over 8% underpins the corporate profit outlook, but
there has been an expectation that interest rates must rise in Malaysia between
1% and 2%. We think the lower end of this range is more probable.
The Fund has been underweight in the Malaysian market given interest rate fears
and pre-election investment speculation concerns. We believe that the market is
over-discounted and will move ahead as excessive negativism dissipates and as a
result, we plan to expand the Fund's Malaysia
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<PAGE> 6
exposure. The Fund is overweight with banking, gaming and consumer stocks while
underweight with property and utility companies.
In Malaysia, the Fund's largest holding is TELECOM MALAYSIA, the primary
provider and operator in Malaysia of fixed line telephones. We believe that the
company offers broad exposure to Malaysia's future economic growth prospects.
With a market capitalization of over US$15 billion, the company makes up 12% of
the local Kuala Lumpur Composite Stock Index.
- --------------------------------------------------------------------------------
PAKISTAN
US$4.3 MILLION, 1.9% OF THE FUND'S NAV, WAS INVESTED IN PAKISTAN AS OF APRIL 30,
1995.
Pakistan has experienced some unusual politically-inspired violence during the
past six months as the activist MQM group has taken more direct action in its
disputes with the Pakistani government. This has led to a serious market
set-back made worse by inflation fears, a poor cotton crop and cuts in forecasts
for both corporate profits and GNP growth (to just under 5%). After falling more
than 27% during the period under review, the equity market is extremely cheap
based on historic valuation measures and we believe prospects should begin to
improve after a period of fairly severe adjustment. In our opinion, the Fund is
positioned to take advantage of the market's drop and the prospect for
improvement in the second half of the year.
The Fund's largest holding in Pakistan is PAKISTAN STATE OIL, the country's
largest oil marketing company with a 78% control of the domestic market and over
2,200 service stations. The company's monopoly position has allowed it to win
key contracts such as the fuel supply agreement for the 1,292 MW Hub power
station. Pakistan State Oil is a core holding for the Fund.
- --------------------------------------------------------------------------------
PHILIPPINES
US$8.4 MILLION, 3.7% OF THE FUND'S NAV, WAS INVESTED IN PHILIPPINES AS OF APRIL
30, 1995.
GDP growth remains strong in the Philippines, rising by 5.1% in 1994. In our
opinion, liquidity will likely improve as a result of the Government's decision
to lower the banks' reserve requirements from 17% to 15% and in light of signs
that inflation is moderating.
The recent election success enjoyed by the current Government reinforces the
strong position of President Ramos and the Government's commitment to further
economic reforms. In our opinion, investor sentiment has benefitted from this
prospect.
Notwithstanding an improving general outlook, the equity market looks expensive
relative to its historical average in terms of PER and especially in light of
its recent rally. We believe the peso may well remain under pressure in 1995 as
the current account deficit expands. This trend should moderate in 1996 as
capital equipment imports are reduced and should be of some concern in the short
term.
In the Philippines, the Fund's top holding is PHILIPPINES LONG DISTANCE
TELEPHONE. The company has a monopoly which runs until 2028 and covers virtually
all types of telecommunication services. 70% of revenues are linked to foreign
currencies, mainly US dollars. The company is responsible for 90% of all
installed domestic lines and controls the international call network. We believe
that the
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<PAGE> 7
company offers the Fund broad exposure to the strong growth the Philippines will
experience over the foreseeable future.
- --------------------------------------------------------------------------------
SINGAPORE
US$29.7 MILLION, 13.0% OF THE FUND'S NAV, WAS INVESTED IN SINGAPORE AS OF APRIL
30, 1995.
In our opinion, the Singapore Government has done an exceptional job of managing
double digit growth in the economy while keeping inflation low and under
control. The currency has appreciated steadily against the US dollar, adding an
additional element of return to US dollar-based Singapore investments.
The Fund's focus has been on the banking and property stocks, while we have
remained skeptical toward the ship repair sector. The Fund's largest position in
Singapore is OVERSEAS CHINESE BANKING CORPORATION, one of Singapore's "Big Four"
banks with 57 Singaporean and 25 Malaysian branches. Activities include banking,
finance, investment management, stockbroking and real estate development. The
company owns 51% of Great Eastern Life which in turns owns significant positions
in the following publicly listed companies: Fraser & Neave, Robinson, Straits
Trading, Wearnes, Singapore Press Holdings and Times Publishing. Although it is
unlikely to be developed in the near future, the company also owns enormous
amounts of prime Singaporean real estate. This company is a core holding for the
Fund.
- --------------------------------------------------------------------------------
SRI LANKA
US$2.2 MILLION, 1.0% OF THE FUND'S NAV, WAS INVESTED IN SRI LANKA AS OF APRIL
30, 1995.
Foreign investor interest in Sri Lanka has moderated and with it, trading volume
in the local stock market. A slowdown in the pace of the country's privatization
program probably disappointed some prospective buyers while the Government's
heavy focus on a political solution to the long standing problems with the Tamil
minority has left economic policy in limbo.
Notwithstanding the above, corporate profits have been growing nicely at
approximately 25% and equity market valuations are low by most standards.
Inflation performance has been a disappointment but does not account for what
appears to be an overly negative market view.
The Fund maintains a modest strategic exposure in Sri Lanka in light of the good
growth and the benefits of an increasingly market oriented environment. The
largest holding is DEVELOPMENT FINANCE COMPANY OF CEYLON. This company was
established by an act of the Sri Lankan parliament in 1955 and is the leading
provider of medium and long-term project and equipment finance in Sri Lanka. The
Sri Lankan government owns a 45% stake in the company. In addition, the
company's net profits were up over 25% to US$14 million in 1995 and recently
announced a 1 for 3 stock bonus on the back of this strong profit performance.
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- --------------------------------------------------------------------------------
THAILAND
US$32.3 MILLION, 14.1% OF THE FUND'S NAV, WAS INVESTED IN THAILAND AS OF APRIL
30, 1995.
In our opinion, Thailand remains one of the best success stories of the region,
continuing to post high rates of GDP growth of approximately 8% while
experiencing relatively moderate inflation levels of approximately 5%. The
political environment has always been of concern, especially to foreign
investors and there remains some reasons for caution.
The Central Bank has maintained a tight monetary policy to control inflation and
Thailand's trade performance and current account are improving. Domestic
investment levels are high and infrastructure development remains a major
commitment for both the public and private sector.
The Thai stock market has fully participated in the liquidity-induced rally
throughout Asia in the last few weeks. Tight monetary conditions have eased
somewhat with the overnight interbank rate dropping from 13% to 11%. In our
opinion, there is still room for further upside, most likely occurring after a
short term consolidation.
The Fund is overweight in banking, finance, energy and communication stocks
while underweight in the building materials and property sectors. Exposure to
the country has recently been increased. In Thailand, the Fund's largest holding
is THAI FARMER'S BANK, the country's third largest bank in terms of total
assets. We believe the bank is aggressive and well-managed and has capitalized
on fee income by producing businesses such as credit cards. The company has been
expanding throughout the region and has been setting up branches in Vietnam and
across China.
- --------------------------------------------------------------------------------
TAIWAN
US$6.3 MILLION, 2.7% OF THE FUND'S NAV, WAS INVESTED IN TAIWAN AS OF APRIL 30,
1995.
Taiwan continues to post good economic growth while controlling inflation. GDP
is rising by about 6.5% and inflation is staying around 4%. The NT$ has
appreciated moderately against the US dollar, adding to US investor returns, but
not enough to undermine strong export growth. Indeed, the only factor
constraining export growth at the moment appears to be capacity.
Taiwan's exporters are benefiting from an improved competitive position vis a
vis Japan and taking full advantage of it. This has been especially true in the
electronics sector.
Politics are a continuing background noise for investors with concerns about
Taiwan's relationship with China occasionally surging to the top of the agenda.
In general, we believe that market setbacks based on such concerns represent an
opportunity for investors in Taiwan. In our opinion, a recent liberalization of
capital controls will permit a significant increase in foreign equity investment
which will probably help the market. The change comes at a time when valuation
levels are moderate by historic standards.
The Fund's largest holding in Taiwan is UNITED MICROELECTRONICS CORPORATION, a
leader in Taiwan's electronics industry that is well positioned to capitalize on
the PC industries high volume growth. The company has a competitive advantage in
its flexible product line, advanced IC design capability and world class
production facilities. Over the next years, we believe that the company's
earnings will be fueled by a shift to higher density production technology and
capacity expansion. We feel
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United Microelectronics has robust earnings prospects, high quality of earnings
and an attractive price and as a result, it is one of the Fund's key holdings in
Taiwan.
REGIONAL OUTLOOK
The Southeast Asian region continues to show attractive rates of economic growth
and compelling corporate profit performance against the backdrop of contained
inflation. With the success of the Federal Reserve in slowing the US economy and
thus reducing the probability of an inflation surge, the outlook for equities
has improved. Recent US numbers on housing starts, industrial production growth
and capacity utilization indicate a much lower risk of overheating, a view which
seems confirmed by a drop in the yield of the US long bond to below 7% from 8%
in November of 1994. In the past few weeks the US dollar appears to have
stabilized after its sharp fall against the yen and the deutsche mark and we
expect the stability to continue.
The prospect of a more benign interest rate environment in the United States and
more sustainable rates of growth in OECD economies suggests a better period for
equity investors over the balance of 1995. We believe the shift in focus from
investors worrying about higher interest rates to the economic vitality of the
Southeast Asian region means that liquidity will flow back into the markets in
which the Fund invests. Our view of developments over the next few months favors
Southeast Asia at the expense of Northeast Asia and the portfolio will reflect
this bias.
Although we think liquidity will drive all of the Southeast Asian markets in an
indiscriminate manner, we feel that it is more appropriate to remain underweight
in Hong Kong while raising exposure to Thailand. We are cautious on Hong Kong
given some deterioration of fundamentals and in particular, the impact of a flat
property market on equity market sentiment. The concerns of both local and
foreign investors about policy and leadership changes in China is likely to rise
with the death of Mr. Deng, an event which cannot be too far off given the
deterioration of his health and his advanced years. Questions about China should
not however, be allowed to overshadow what is clearly a very positive general
investment environment in the Asia region.
BZW INVESTMENT MANAGEMENT
Hong Kong & London
June 1, 1995
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SCHEDULE OF INVESTMENTS THE ASIA TIGERS FUND, INC.
APRIL 30, 1995 (UNAUDITED)
<TABLE>
<CAPTION>
No.
of Shares Security Cost Value
- ---------- -------------------------------------------------------------- ------------- -------------
<C> <S> <C> <C>
COMMON STOCKS -- 78.76%
BANGLADESH -- 0.60%
Health Care -- 0.29%
6,200 Beximco Infusions............................................. $ 111,625 $ 82,253
178,000 Beximco Pharmaceuticals....................................... 575,692 570,313
------------- -------------
687,317 652,566
------------- -------------
Manufacturing -- 0.10%
21,781 Bangladesh Oxygen............................................. 98,446 105,318
35,830 GQ Ball Pen................................................... 95,802 121,822
------------- -------------
194,248 227,140
------------- -------------
Textiles -- 0.18%
7,040 Apex Footware................................................. 102,099 85,467
25,000 Padma Textile Mills........................................... 227,805 247,184
8,750 Padma Textile Mills New....................................... 76,371 86,514
------------- -------------
406,275 419,165
------------- -------------
Tobacco -- 0.03%
19,968 Bangladesh Tobacco............................................ 93,851 76,473
------------- -------------
TOTAL BANGLADESH.............................................. 1,381,691 1,375,344
------------- -------------
CHINA -- 1.39%
Automobiles & Auto Parts -- 0.40%
1,425,300 Shan Diesel Engine Co. B...................................... 1,213,092 923,594
------------- -------------
Manufacturing -- 0.42%
1,600,000 Shan Industrial Sewing Machine B.............................. 1,117,748 400,000
750,000 Shangling Electric Appliance ADR.............................. 561,324 555,000
------------- -------------
1,679,072 955,000
------------- -------------
Textiles -- 0.29%
2,213,100 Sanmao Textile Co. B.......................................... 1,123,302 663,930
------------- -------------
Transportation -- 0.28%
722,800 Shanghai Dazhong Taxi ADR..................................... 1,007,275 505,960
700,000 Shanghai Haixing Shipping Co. Ltd............................. 133,603 130,258
------------- -------------
1,140,878 636,218
------------- -------------
TOTAL CHINA................................................... 5,156,344 3,178,742
------------- -------------
HONG KONG -- 19.61%
Banking -- 3.95%
450,000 Hang Seng Bank................................................ 4,188,842 2,965,691
524,638 HSBC Holdings PLC............................................. 6,861,075 6,084,675
------------- -------------
11,049,917 9,050,366
------------- -------------
</TABLE>
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SCHEDULE OF INVESTMENTS THE ASIA TIGERS FUND, INC.
APRIL 30, 1995 (UNAUDITED) (CONTINUED)
<TABLE>
<CAPTION>
No.
of Shares Security Cost Value
- ---------- -------------------------------------------------------------- ------------- -------------
<C> <S> <C> <C>
HONG KONG (CONTINUED)
Holding Company -- 5.91%
400,000 Citic Pacific................................................. $ 970,994 $ 979,518
1,508,000 Hutchinson Whampoa............................................ 6,759,453 6,547,626
900,000 Swire Pacific A............................................... 6,755,789 6,018,608
------------- -------------
14,486,236 13,545,752
------------- -------------
Hotel & Restaurant -- 0.74%
1,400,000 Hong Kong & Shanghai Hotels................................... 2,229,391 1,700,588
------------- -------------
Real Estate -- 3.46%
450,000 Cheung Kong Holdings.......................................... 2,536,681 1,895,716
133,000 Great Eagle................................................... 550,295 238,897
500,000 Hong Kong Land Holdings....................................... 1,449,099 940,000
300,000 Hysan Development............................................. 657,785 639,659
150,000 New World Development Ltd..................................... 399,811 389,610
600,000 Sun Hung Kai Properties....................................... 4,974,599 3,830,200
------------- -------------
10,568,270 7,934,082
------------- -------------
Utilities -- 5.55%
800,000 China Light & Power........................................... 5,357,759 3,773,341
200,000 Consolidated Electric Power................................... 432,695 438,070
600,000 Hong Kong Electric............................................ 2,278,151 1,841,442
3,400,000 Hong Kong Telecom............................................. 6,651,468 6,656,329
------------- -------------
14,720,073 12,709,182
------------- -------------
TOTAL HONG KONG............................................... 53,053,887 44,939,970
------------- -------------
INDIA -- 3.40%
Automobiles & Auto Parts -- 1.12%
220,000 Mahindra & Mahindra GDS....................................... 2,388,000 2,557,500
------------- -------------
Chemicals -- 0.10%
23,500 Gujarat Narmada GDR........................................... 299,625 217,375
------------- -------------
Electronics -- 0.20%
25,000 JCT Ltd. GDR*................................................. 431,250 450,000
------------- -------------
Food & Beverage -- 0.44%
150,000 ITC Ltd. GDR.................................................. 1,736,750 1,031,250
------------- -------------
Manufacturing -- 0.34%
175,000 Jain Irrigation GDR........................................... 1,782,254 787,500
------------- -------------
Metals & Mining -- 0.62%
160,000 Indian Aluminum GDR........................................... 1,784,000 1,420,000
------------- -------------
</TABLE>
11
<PAGE> 12
SCHEDULE OF INVESTMENTS THE ASIA TIGERS FUND, INC.
APRIL 30, 1995 (UNAUDITED) (CONTINUED)
<TABLE>
<CAPTION>
No.
of Shares Security Cost Value
- ---------- -------------------------------------------------------------- ------------- -------------
<C> <S> <C> <C>
INDIA (CONTINUED)
Transportation -- 0.58%
200,000 Great Eastern Shipping Co. Ltd. GDR........................... $ 2,893,938 $ 1,325,000
------------- -------------
TOTAL INDIA................................................... 11,315,817 7,788,625
------------- -------------
INDONESIA -- 5.35%
Automobiles & Auto Parts -- 0.53%
690,000 United Tractors-Foreign....................................... 1,698,064 1,206,186
------------- -------------
Banking -- 0.23%
100,000 Bank Dagang Nasional-Foreign.................................. 170,337 124,384
100,000 Panin Bank-Foreign............................................ 129,125 98,610
150,000 PT Bank International Indonesia-Foreign....................... 502,647 309,278
------------- -------------
802,109 532,272
------------- -------------
Construction -- 1.30%
900,000 Indocement Tunggal Prakarsa-Foreign........................... 3,687,882 2,985,208
------------- -------------
Food & Beverage -- 0.94%
340,000 Gudang Garam-Foreign.......................................... 1,428,076 2,004,034
40,000 PT Indofoods-Foreign*......................................... 156,543 141,641
------------- -------------
1,584,619 2,145,675
------------- -------------
Health Maintenance -- 0.46%
312,000 Kalbe Farma-Foreign........................................... 1,232,917 1,045,361
------------- -------------
Paper -- 0.29%
600,000 Indah Kiat Paper-Foreign...................................... 818,401 665,621
------------- -------------
Real Estate -- 0.15%
211,500 Modernland Realty-Foreign..................................... 774,180 341,282
------------- -------------
Telecommunications -- 0.94%
600,000 Indo Satellite Corp.-Foreign*................................. 2,133,763 2,164,948
------------- -------------
Tobacco -- 0.51%
200,000 Hanjaya Mandal Sampoerna.-Foreign............................. 1,010,967 1,174,361
------------- -------------
TOTAL INDONESIA............................................... 13,742,902 12,260,914
------------- -------------
KOREA -- 6.30%
Automobiles -- 0.77%
80,000 Hyundai Motor Co. GDR*........................................ 2,282,500 1,760,000
------------- -------------
Banking -- 0.18%
20,000 Shinhan Bank.................................................. 421,336 406,664
------------- -------------
</TABLE>
12
<PAGE> 13
SCHEDULE OF INVESTMENTS THE ASIA TIGERS FUND, INC.
APRIL 30, 1995 (UNAUDITED) (CONTINUED)
<TABLE>
<CAPTION>
No.
of Shares Security Cost Value
- ---------- -------------------------------------------------------------- ------------- -------------
<C> <S> <C> <C>
KOREA (CONTINUED)
Chemicals -- 0.10%
8,000 L.G. Chemicals................................................ $ 240,504 $ 224,583
------------- -------------
Electronics -- 1.55%
11,680 Samsung Electric Co........................................... 1,858,202 1,876,951
1,377 Samsung Electric Co. New*..................................... 231,672 213,152
17,238 Samsung Electric Co. GDR Old*................................. 1,041,919 848,972
7,571 Samsung Electric Co. Spon GDR *............................... 444,477 608,330
------------- -------------
3,576,270 3,547,405
------------- -------------
Forestry -- 0.49%
56,777 Hansol Paper Co. GDS*......................................... 1,492,324 1,135,540
------------- -------------
Iron & Steel -- 0.30%
25,000 Pohang Iron................................................... 660,975 690,625
------------- -------------
Oil -- 1.15%
59,281 Yukong........................................................ 3,447,190 2,628,490
------------- -------------
Telecommunications -- 0.67%
110,000 L.G. Electronics Inc. GDS*.................................... 2,202,500 1,540,000
------------- -------------
Utilities -- 1.09%
68,660 Korea Electric Power.......................................... 2,506,175 2,512,940
------------- -------------
TOTAL KOREA................................................... 16,829,774 14,446,247
------------- -------------
MALAYSIA -- 7.93%
Agriculture -- 0.13%
100,000 Kuala Lumpur Kepong Berhad.................................... 269,744 287,601
------------- -------------
Banking -- 2.09%
150,000 Commerce Asset Holdings....................................... 564,107 656,216
300,000 DCB Holdings Berhad........................................... 610,478 716,977
400,000 Malayan Banking............................................... 2,465,930 2,738,283
643,000 Tan & Tan..................................................... 959,693 685,012
------------- -------------
4,600,208 4,796,488
------------- -------------
Forestry -- 0.47%
240,000 Aokam Perdana................................................. 1,596,235 1,079,111
------------- -------------
Holding Company -- 0.29%
260,000 Sime Darby Berhad............................................. 643,872 663,507
------------- -------------
Leisure -- 2.22%
277,500 Genting Berhad................................................ 2,114,430 2,529,165
485,000 Resorts World Berhad.......................................... 2,728,812 2,553,976
------------- -------------
4,843,242 5,083,141
------------- -------------
</TABLE>
13
<PAGE> 14
SCHEDULE OF INVESTMENTS THE ASIA TIGERS FUND, INC.
APRIL 30, 1995 (UNAUDITED) (CONTINUED)
<TABLE>
<CAPTION>
No.
of Shares Security Cost Value
- ---------- -------------------------------------------------------------- ------------- -------------
<C> <S> <C> <C>
MALAYSIA (CONTINUED)
Machinery -- 0.11%
100,000 UMW Holdings.................................................. $ 254,655 $ 249,119
------------- -------------
Real Estate -- 0.05%
40,000 Land & General................................................ 113,580 115,850
------------- -------------
Transportation -- 0.33%
370,000 Malaysian Helicopter.......................................... 662,393 629,481
50,000 Malaysian International Shipping.............................. 144,258 129,623
------------- -------------
806,651 759,104
------------- -------------
Utilities -- 2.24%
650,000 Telekom Malaysia Berhad....................................... 5,080,733 4,476,040
150,000 Tenaga Nasional Berhad........................................ 667,707 668,368
------------- -------------
5,748,440 5,144,408
------------- -------------
TOTAL MALAYSIA................................................ 18,876,627 18,178,329
------------- -------------
PAKISTAN -- 1.88%
Banking -- 0.09%
130,000 Muslim Commercial Bank*....................................... 370,455 206,624
------------- -------------
Chemicals -- 0.24%
250,000 Fauji Fertilizer Co........................................... 816,143 559,538
------------- -------------
Construction -- 0.31%
301,250 DG Khan Cement*............................................... 758,659 407,966
100,000 Pakland Cement Ltd.*.......................................... 599,325 311,395
------------- -------------
1,357,984 719,361
------------- -------------
Finance -- 0.15%
50,000 Pakistan Investment Fund...................................... 563,125 331,250
------------- -------------
Food Products -- 0.28%
150,000 Packages*..................................................... 858,028 651,984
------------- -------------
Oil -- 0.54%
125,050 Pakistan State Oil*........................................... 1,399,509 1,224,986
------------- -------------
Telecommunications -- 0.27%
6,000 Pakistan Telecom*............................................. 1,043,311 627,000
------------- -------------
TOTAL PAKISTAN................................................ 6,408,555 4,320,743
------------- -------------
PHILIPPINES -- 3.52%
Banking -- 0.12%
15,300 Metropolitan Bank............................................. 283,445 278,584
------------- -------------
</TABLE>
14
<PAGE> 15
SCHEDULE OF INVESTMENTS THE ASIA TIGERS FUND, INC.
APRIL 30, 1995 (UNAUDITED) (CONTINUED)
<TABLE>
<CAPTION>
No.
of Shares Security Cost Value
- ---------- -------------------------------------------------------------- ------------- -------------
<C> <S> <C> <C>
PHILIPPINES (CONTINUED)
Food & Beverage -- 0.43%
1,759,500 Universal Robina Corp. ADR*................................... $ 1,349,348 $ 985,320
------------- -------------
Holding Company -- 0.27%
150,000 First Philippine Holdings B................................... 369,190 375,723
800,000 JG Summit Holdings B.......................................... 218,196 252,794
------------- -------------
587,386 628,517
------------- -------------
Oil & Gas -- 0.48%
1,600,000 Petron Corp................................................... 1,133,813 1,094,412
------------- -------------
Real Estate -- 0.36%
2,000,000 Filinvest Land Inc. B......................................... 565,270 562,620
862,000 SM Prime*..................................................... 257,231 262,420
------------- -------------
822,501 825,040
------------- -------------
Tobacco -- 0.43%
273,000 San Miguel B.................................................. 982,651 978,381
------------- -------------
Utilities -- 1.43%
70,000 Manilla Electric Company B.................................... 827,255 728,324
40,000 Philippine Long Distance Telephone ADR........................ 2,529,271 2,550,000
------------- -------------
3,356,526 3,278,324
------------- -------------
TOTAL PHILIPPINES............................................. 8,515,670 8,068,578
------------- -------------
SINGAPORE -- 12.96%
Airlines -- 0.97%
230,000 Singapore Airlines-Foreign.................................... 2,263,592 2,212,173
------------- -------------
Automobiles -- 0.05%
15,000 Cycle & Carriage.............................................. 127,343 122,739
------------- -------------
Banking -- 3.91%
400,000 Development Bank of Singapore-Foreign......................... 4,011,748 4,277,921
400,000 Overseas Chinese Bank Corp.-Foreign........................... 3,954,011 4,364,054
30,000 United Overseas Bank.......................................... 307,494 312,230
------------- -------------
8,273,253 8,954,205
------------- -------------
Conglomerate -- 1.42%
410,000 Jardine Matheson.............................................. 3,785,180 3,259,500
------------- -------------
Food & Beverage -- 0.77%
160,000 Fraser & Neave Ltd............................................ 1,860,133 1,757,106
------------- -------------
Hotel & Restaurant -- 0.85%
1,425,000 Republic Hotels............................................... 2,591,167 1,953,596
------------- -------------
</TABLE>
15
<PAGE> 16
SCHEDULE OF INVESTMENTS THE ASIA TIGERS FUND, INC.
APRIL 30, 1995 (UNAUDITED) (CONTINUED)
<TABLE>
<CAPTION>
No.
of Shares Security Cost Value
- ---------- -------------------------------------------------------------- ------------- -------------
<C> <S> <C> <C>
SINGAPORE (CONTINUED)
Media -- 0.86%
115,000 Singapore Press............................................... $ 1,903,294 $ 1,981,051
------------- -------------
Real Estate -- 3.54%
100,000 Bukit Sembawang Estates....................................... 2,180,288 1,737,008
500,000 City Developments............................................. 1,815,156 2,942,865
1,249,000 DBS Land-Foreign.............................................. 4,367,318 3,442,550
------------- -------------
8,362,762 8,122,423
------------- -------------
Shipbuilding -- 0.43%
120,000 Keppel Corporation............................................ 960,776 973,299
------------- -------------
Transportation -- 0.16%
110,000 Straits Steamship Land Ltd.................................... 368,072 366,350
------------- -------------
TOTAL SINGAPORE............................................... 30,495,572 29,702,442
------------- -------------
SRI LANKA -- 0.97%
Construction -- 0.05%
339,900 Columbo Dock Yards*........................................... 208,688 106,330
------------- -------------
Finance -- 0.26%
70,000 Development Finance Company of Ceylon......................... 889,747 588,321
------------- -------------
Leisure -- 0.20%
120,000 Aitken Spence & Company Ltd.-Foreign.......................... 989,433 462,982
------------- -------------
Manufacturing -- 0.46%
103,350 Korea Ceylon Footwear......................................... 283,864 92,681
349,910 Richard Peiris & Co........................................... 1,253,354 682,306
211,848 Richard Peiris Exports Ltd.................................... 554,431 293,804
------------- -------------
2,091,649 1,068,791
------------- -------------
TOTAL SRI LANKA............................................... 4,179,517 2,226,424
------------- -------------
TAIWAN -- 0.77%
Steel -- 0.77%
90,000 China Steel GDR............................................... 1,931,250 1,755,000
------------- -------------
TOTAL TAIWAN.................................................. 1,931,250 1,755,000
------------- -------------
</TABLE>
16
<PAGE> 17
SCHEDULE OF INVESTMENTS THE ASIA TIGERS FUND, INC.
APRIL 30, 1995 (UNAUDITED) (CONTINUED)
<TABLE>
<CAPTION>
No.
of Shares Security Cost Value
- ---------- -------------------------------------------------------------- ------------- -------------
<C> <S> <C> <C>
THAILAND -- 14.08%
Banking -- 5.64%
440,000 Bangkok Bank-Foreign.......................................... $ 3,928,902 $ 4,270,799
30,000 Bank of Ayudhya-Foreign....................................... 116,863 134,584
150,000 Krung Thai Bank............................................... 420,509 455,750
400,000 Siam Commercial Bank-Foreign.................................. 3,474,403 3,393,149
530,000 Thai Farmer Bank-Foreign...................................... 3,040,053 4,668,842
------------- -------------
10,980,730 12,923,124
------------- -------------
Computers -- 0.78%
80,000 Shinawatra Computers-Foreign.................................. 2,389,695 1,794,454
------------- -------------
Construction -- 1.21%
48,000 Siam Cement-Foreign........................................... 2,035,519 2,768,026
------------- -------------
Finance -- 2.53%
450,000 Finance One-Foreign........................................... 2,572,724 2,477,569
50,000 Industrial Finance of Thailand-Foreign........................ 104,991 107,056
150,000 Industrial Finance of Thailand-Local.......................... 313,509 321,166
430,000 Phatra Thanakit-Foreign....................................... 3,331,875 2,893,556
------------- -------------
6,323,099 5,799,347
------------- -------------
Oil -- 0.53%
28,000 PTT Exploration-Foreign....................................... 250,473 269,494
97,000 PTT Exploration-Local......................................... 914,029 949,429
------------- -------------
1,164,502 1,218,923
------------- -------------
Real Estate -- 1.24%
160,000 Land and House-Foreign........................................ 3,538,512 2,831,974
------------- -------------
Telecommunications -- 0.55%
27,200 United Communication-Foreign.................................. 372,530 386,036
59,800 United Communication-Local.................................... 862,072 877,977
------------- -------------
1,234,602 1,264,013
------------- -------------
Utilities -- 1.60%
250,000 Advanced Info Service-Foreign................................. 3,537,465 3,670,473
------------- -------------
TOTAL THAILAND................................................ 31,204,124 32,270,334
------------- -------------
TOTAL COMMON STOCKS........................................... 203,091,730 180,511,692
------------- -------------
<CAPTION>
Par
($000)
- ----------
<C> <S> <C> <C>
CONVERTIBLE BONDS -- 12.66%
HONG KONG -- 1.22%
Real Estate -- 1.22%
2,885 Wharf 5.00%, 07/15/00......................................... 2,704,930 2,791,238
------------- -------------
TOTAL HONG KONG............................................... 2,704,930 2,791,238
------------- -------------
</TABLE>
17
<PAGE> 18
SCHEDULE OF INVESTMENTS THE ASIA TIGERS FUND, INC.
APRIL 30, 1995 (UNAUDITED) (CONTINUED)
<TABLE>
<CAPTION>
Par
($000) Security Cost Value
- ---------- -------------------------------------------------------------- ------------- -------------
<C> <S> <C> <C>
INDIA -- 6.89%
Construction -- 0.56%
1,000 Gujarat Ambuja 3.50%, 06/30/99................................ $ 1,618,125 $ 1,285,000
------------- -------------
Finance -- 1.00%
3,000 ICICI Ltd. 2.50%, 04/03/00.................................... 2,705,453 2,287,500
------------- -------------
Metals & Mining -- 1.83%
2,000 Jindal Strips 4.25%, 03/31/99................................. 2,361,937 1,880,000
2,750 Sterlite Industries Ltd. 3.50%, 06/30/99...................... 3,222,895 2,310,000
------------- -------------
5,584,832 4,190,000
------------- -------------
Oil -- 0.88%
SWF 2,800 Southern Petroleum 2.00%, 07/18/99............................ 2,156,451 2,023,581
------------- -------------
Textiles -- 1.56%
3,500 Reliance Industries Ltd. 3.50%, 11/03/99...................... 4,827,188 3,570,000
------------- -------------
Transportation -- 1.06%
2,645 SCICI Ltd. 3.50%, 04/01/04.................................... 3,395,084 2,426,787
------------- -------------
TOTAL INDIA................................................... 20,287,133 15,782,868
------------- -------------
KOREA -- 1.02%
Construction -- 0.13%
250 Ssangyong Cement 3.00%, 12/31/05.............................. 359,375 290,000
------------- -------------
Electronics -- 0.89%
1,500 LG Electronics 3.25%, 12/31/06................................ 2,388,265 1,815,000
SWF 500 Samsung Electronics 0.25%, 12/31/00........................... 353,305 234,716
------------- -------------
2,741,570 2,049,716
------------- -------------
TOTAL KOREA................................................... 3,100,945 2,339,716
------------- -------------
MALAYSIA -- 1.44%
Real Estate -- 1.44%
750 Land & General 4.50%, 07/26/04................................ 913,125 905,625
2,345 United Engineers 2.00%, 03/01/04.............................. 2,317,394 2,391,900
------------- -------------
TOTAL MALAYSIA................................................ 3,230,519 3,297,525
------------- -------------
</TABLE>
18
<PAGE> 19
SCHEDULE OF INVESTMENTS THE ASIA TIGERS FUND, INC.
APRIL 30, 1995 (UNAUDITED) (CONTINUED)
<TABLE>
<CAPTION>
Par
($000) Security Cost Value
- ---------- -------------------------------------------------------------- ------------- -------------
<C> <S> <C> <C>
PHILIPPINES -- 0.14%
Holding Company -- 0.14%
500 JG Summit 3.50%, 12/23/03..................................... $ 328,369 $ 323,750
------------- -------------
TOTAL PHILIPPINES............................................. 328,369 323,750
------------- -------------
TAIWAN -- 1.95%
Construction -- 0.12%
SWF 300 Pacific Construction 2.125%, 10/01/98......................... 314,609 282,969
------------- -------------
Electronics -- 1.09%
1,600 United Micro Electronics 1.25%, 06/08/04...................... 2,455,750 2,508,000
------------- -------------
Textiles -- 0.74%
1,500 Far Eastern Textile 4.00%, 10/07/06........................... 1,711,837 1,683,750
------------- -------------
TOTAL TAIWAN.................................................. 4,482,196 4,474,719
------------- -------------
TOTAL CONVERTIBLE BONDS....................................... 34,134,092 29,009,816
------------- -------------
<CAPTION>
No.
of Shares
- ----------
<C> <S> <C> <C>
SHORT TERM OBLIGATIONS -- 8.58%
MUTUAL FUND -- 0.20%
463,322 Temporary Investment Fund, Inc. 463,322 463,322
------------- -------------
TOTAL MUTUAL FUND 463,322 463,322
------------- -------------
<CAPTION>
Par
($000)
- ----------
<C> <S> <C> <C>
TIME DEPOSITS -- 8.38%
4,200 Chase Manhattan Bank London Time Deposit 5.75%, 05/01/95...... 4,200,000 4,200,000
5,000 Chase Manhattan Bank London Time Deposit 5.75%, 05/05/95...... 5,000,000 5,000,000
10,000 Chase Manhattan Bank London Time Deposit 5.875%, 05/26/95 .... 10,000,000 10,000,000
------------- -------------
TOTAL TIME DEPOSITS 19,200,000 19,200,000
------------- -------------
TOTAL SHORT TERM OBLIGATIONS 19,663,322 19,663,322
------------- -------------
TOTAL INVESTMENTS -- 100% $ 256,889,144 $ 229,184,830
============= =============
</TABLE>
19
<PAGE> 20
SCHEDULE OF INVESTMENTS THE ASIA TIGERS FUND, INC.
APRIL 30, 1995 (UNAUDITED) (CONCLUDED)
- ---------------
* Non-income producing security
** Aggregate cost for Federal income tax purposes.
The aggregate gross unrealized appreciation (depreciation) for all
securities is as follows:
Excess of value over tax cost $ 7,346,862
Excess of tax cost over value (35,051,176)
--------------
($ 27,704,314)
==============
<TABLE>
<S> <C>
GDR -- Global Depository Receipts
GDS -- Global Depositary Shares
SWF -- Swiss Francs
</TABLE>
Convertible bonds denominated in U.S. dollars, except for principal amounts
designated as Swiss Francs.
See accompanying notes to financial statements.
20
<PAGE> 21
STATEMENT OF ASSETS AND LIABILITIES THE ASIA TIGERS FUND, INC.
<TABLE>
<CAPTION>
APRIL 30,
1995
(UNAUDITED)
-------------
<S> <C>
ASSETS:
Investments at value (Cost $256,889,144)................................. $ 229,184,830
Cash (including $357,282 of foreign currency holdings with a
cost of $357,187)...................................................... 642,465
Receivables:
Dividends........................................................... 403,166
Interest............................................................ 326,505
Securities sold..................................................... 6,936,637
Unamortized organization costs........................................... 87,236
Prepaid expenses......................................................... 23,582
-------------
Total assets................................................... 237,604,421
-------------
LIABILITIES:
Payable for securities purchased......................................... 3,924,974
Due to investment manager................................................ 191,870
Due to administrator..................................................... 38,374
Accrued expenses......................................................... 370,204
-------------
Total liabilities.............................................. 4,525,422
-------------
NET ASSETS............................................................... $ 233,078,999
=============
NET ASSET VALUE PER SHARE ($233,078,999/20,514,984)...................... $11.36
=======
Net assets consist of:
Capital stock, ($.001 par value; 20,514,984 shares of common stock
issued and outstanding, 100,000,000 shares authorized)............ $ 20,515
Paid-in capital..................................................... 286,533,243
Undistributed net investment income................................. 671,624
Accumulated net realized loss on investments and foreign currency
related transactions.............................................. (26,446,964)
Net unrealized depreciation in value of investments and translation
of assets and liabilities denominated in foreign currencies........ (27,699,419)
-------------
$ 233,078,999
=============
</TABLE>
See accompanying notes to financial statements.
21
<PAGE> 22
STATEMENT OF OPERATIONS THE ASIA TIGERS FUND, INC.
FOR THE SIX MONTHS ENDED APRIL 30, 1995 (UNAUDITED)
<TABLE>
<S> <C> <C>
INVESTMENT INCOME:
Dividends (Net of taxes withheld of $124,650)............................... $ 1,560,388
Interest.................................................................... 842,829
-------------
Total investment income..................................................... 2,403,217
-------------
EXPENSES:
Management fees............................................... 1,184,408
Custodian fees................................................ 280,577
Administration fees........................................... 236,881
Transfer agent fees........................................... 30,504
Directors' fees............................................... 11,797
Legal fees.................................................... 44,085
Insurance..................................................... 31,530
Printing...................................................... 29,220
Audit fees.................................................... 27,217
NYSE fees..................................................... 12,031
Amortization of organizational cost........................... 12,070
Miscellaneous................................................. 2,576
-----------
Total expenses...................................... 1,902,896
-------------
Net investment income....................................................... 500,321
-------------
NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS,
FOREIGN CURRENCY HOLDINGS AND OTHER ASSETS AND LIABILITIES
DENOMINATED IN FOREIGN CURRENCIES:
Net realized gain (loss) on:
Security transactions....................................................... (26,534,738)
Foreign currency related transactions....................................... 119,301
-------------
(26,415,437)
Net change in unrealized depreciation in value of investments and
translation of assets and liabilities denominated in foreign currencies... (21,710,302)
-------------
Net realized and unrealized loss on investments, foreign currency holdings
and other assets and liabilities denominated in foreign currencies........ (48,125,739)
-------------
Net decrease in net assets resulting from operations........................ $ (47,625,418)
=============
</TABLE>
See accompanying notes to financial statements.
22
<PAGE> 23
STATEMENTS OF CHANGES IN NET ASSETS THE ASIA TIGERS FUND, INC.
<TABLE>
<CAPTION>
FOR THE
PERIOD
NOVEMBER 29,
1993
(COMMENCEMENT
FOR THE SIX OF
MONTHS OPERATIONS)
ENDED APRIL THROUGH
30, 1995 OCTOBER 31,
(UNAUDITED) 1994
------------- -------------
<S> <C> <C>
INCREASE (DECREASE) IN NET ASSETS:
OPERATIONS:
Net investment income.................................. $ 500,321 $ 954,917
Net realized (loss) gain on investments and foreign
currency related transactions........................ (26,415,437) 3,698,152
Net change in unrealized depreciation in value of
investments, foreign currency holdings and other
assets and liabilities denominated in foreign
currencies........................................... (21,710,302) (5,989,117)
------------- -------------
Net decrease in net assets resulting from
operations...................................... (47,625,418) (1,336,048)
------------- -------------
DISTRIBUTIONS TO SHAREHOLDERS FROM:
Net investment income ($.03 and $.02 per share,
respectively)................................... (718,025) (307,720)
Net realized gains ($.17 per share and $0 per
share, respectively)............................ (3,487,548) --
------------- -------------
Net decrease in net assets resulting from
distributions to shareholders................... (4,205,573) (307,720)
------------- -------------
CAPITAL SHARE TRANSACTIONS:
Proceeds from the sale of 20,507,500 shares............ -- 287,515,149
Proceeds from 350 shares issued in reinvestment of
dividends............................................ -- 5,325
Offering costs charged to capital...................... -- (1,066,735)
------------- -------------
Net increase in net assets resulting from capital
share transactions.............................. -- 286,453,739
------------- -------------
Total (decrease) increase in net assets...... (51,830,991) 284,809,971
NET ASSETS
Beginning of period.................................... 284,909,990 100,019
------------- -------------
End of period (including undistributed net investment
income of $671,624 and $889,328, respectively)....... $ 233,078,999 $ 284,909,990
============= =============
</TABLE>
See accompanying notes to financial statements.
23
<PAGE> 24
FINANCIAL HIGHLIGHTS THE ASIA TIGERS FUND, INC.
FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD
<TABLE>
<CAPTION>
FOR THE
PERIOD
NOVEMBER
FOR THE 29, 1993
SIX (COMMENCEMENT
MONTHS OF
ENDED OPERATIONS)
APRIL 30, THROUGH
1995 OCTOBER
(UNAUDITED) 31, 1994
--------- ---------
<S> <C> <C>
Per Share Operating Performance:
Net asset value, beginning of period....................... $ 13.89 $ 13.97(1)
--------- ---------
Net investment income...................................... 0.03 0.05
Net realized and unrealized loss on investments, foreign
currency holdings, and other assets and liabilities
denominated in foreign currencies....................... (2.36) (0.11)
--------- ---------
Net decrease from investment operations.................... (2.33) (0.06)
--------- ---------
Less distributions:
Dividends from net investment income.................... (0.03) (0.02)
Distributions from net realized gains................... (0.17)
--------- ---------
Total dividends and distributions.......................... (0.20) (0.02)
--------- ---------
Net asset value, end of period............................. $ 11.36 $ 13.89
========= =========
Per share market value, end of period........................ $ 9.88 $ 12.38
TOTAL INVESTMENT RETURN BASED ON MARKET VALUE(2)............. (18.46)% (11.65)%
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (in 000's)....................... $ 233,079 $ 284,910
Ratios of expenses to average net assets................... 1.57%(3) 1.60%(3)
Ratios of net investment income to average net assets...... 0.41%(3) 0.38%(3)
Portfolio turnover......................................... 26.28% 45.51%
</TABLE>
- ---------------
(1) Initial public offering price $15.00 per share less underwriting discount of
$0.98 per share and offering expense of $0.05 per share.
(2) Total investment return is calculated assuming a purchase of common
stock at the current market price on the first day and a sale at the current
market price on the last day of each period reported. Dividends and
distributions, if any, are assumed, for purposes of this calculation, to be
reinvested at prices obtained under the Fund's dividend reinvestment plan.
Total investment return does not reflect brokerage commissions or sales
charges and is not annualized.
(3) Annualized.
See accompanying notes to financial statements.
24
<PAGE> 25
NOTES TO FINANCIAL STATEMENTS THE ASIA TIGERS FUND, INC.
APRIL 30, 1995
NOTE A: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES:
The Asia Tigers Fund, Inc. (the "Fund") was incorporated in Maryland on
September 23, 1993 and commenced operations on November 29, 1993. The Fund is
registered under the Investment Company Act of 1940, as amended, as a closed-end
non-diversified management investment company. Prior to commencing its
operations on November 29, 1993, the Fund had no activities other than the sale
of 3,567 shares of capital stock to Oppenheimer & Co., Inc. (Oppenheimer) and
3,567 shares of capital stock to Barclays de Zoete Wedd Investment Management
Inc. (BZW). At April 30, 1995, Oppenheimer and BZW each owned 3,567 shares of
the Fund's Capital Stock.
SIGNIFICANT ACCOUNTING POLICIES ARE AS FOLLOWS:
PORTFOLIO VALUATION: Investments are stated at value in the accompanying
financial statements. In valuing the Fund's assets, all securities for which
market quotations are readily available are valued (i) at the last sale price
prior to the time of determination if there was a sale on the date of
determination, (ii) at the mean between the last current bid and asked prices if
there was no sales price on such date and bid and asked quotations are
available, and (iii) at the bid price if there was no sales price on such date
and only bid quotations are available. Investments in short-term debt securities
having a maturity of 60 days or less are valued at amortized cost. All other
securities and assets are carried at fair value as determined in good faith by,
or under the direction of, the Board of Directors. The net asset value per share
of the Fund is calculated weekly and at the end of each month.
INVESTMENT TRANSACTIONS AND INVESTMENT INCOME: Investment transactions are
accounted for on the trade date. The cost of investments sold is determined by
use of the specific identification method for both financial reporting and
income tax purposes. Interest income is recorded on an accrual basis; dividend
income is recorded on the ex-dividend date or when known. The collectibility of
income receivable from foreign securities is evaluated periodically, and any
resulting allowances for uncollectible amounts are reflected currently in the
determination of investment income.
TAX STATUS: No provision is made for U.S. Federal income or excise taxes
as it is the Fund's intention to qualify as a regulated investment company and
to make the requisite distributions to its shareholders which will be sufficient
to relieve it from all or substantially all Federal income and excise taxes.
FOREIGN CURRENCY TRANSLATION: The books and records of the Fund are
maintained in U.S. dollars. Foreign currency amounts are translated into U.S.
dollars on the following basis:
(i) market value of investment securities, assets and liabilities at
the current rate of exchange at the end of the period; and
25
<PAGE> 26
NOTES TO FINANCIAL STATEMENTS -- (CONTINUED) THE ASIA TIGERS FUND, INC.
APRIL 30, 1995
(ii) purchases and sales of investment securities, income and expenses
at the relevant rates of exchange prevailing on the respective
dates of such transactions.
Securities denominated in currencies other than U.S. dollars are subject to
changes in value due to fluctuations in foreign exchange.
The Fund does not generally isolate the effect of fluctuations in foreign
exchange rates from the effect of fluctuations in the market prices of
securities. The Fund reports certain foreign currency related transactions as
components of realized gains for financial reporting purposes, whereas such
components are treated as ordinary income for federal income tax purposes.
Foreign security and currency transactions may involve certain
considerations and risks not typically associated with those of domestic origin
as a result of, among other factors, the level of governmental supervision and
regulation of foreign securities markets and the possibilities of political or
economic instability.
DISTRIBUTION OF INCOME AND GAINS: The Fund intends to distribute annually
to shareholders, substantially all of its net investment income, including
foreign currency gains, and to distribute annually any net long-term capital
gains in excess of net short-term capital losses. The amount of dividends and
distributions from net investment income and net realized capital gains are
determined in accordance with federal income tax regulations which may differ
from generally accepted accounting principles. These "book/tax" differences are
either considered temporary or permanent in nature. To the extent these
differences are permanent in nature, such amounts are reclassified within the
capital accounts based on their federal tax-basis treatment; temporary
differences do not require reclassification. Dividends and distributions which
exceed net investment income and net realized capital gains for financial
reporting purposes but not for tax purposes are reported as dividends in excess
of net investment income or distributions in excess of net realized capital
gains. To the extent they exceed net investment income and net realized capital
gains for tax purposes, they are reported as distributions of paid-in-capital.
An additional distribution may be made to the extent necessary to avoid payment
of a 4% federal excise tax.
OTHER: 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.
During the year ended October 31, 1994, the Fund reclassified $242,131 from
accumulated net realized gain on investments and foreign currency related
transactions to undistributed net investment income as a result of permanent
book and tax differences relating to foreign currency gains. Net investment
income and net assets were not affected by the change.
26
<PAGE> 27
NOTES TO FINANCIAL STATEMENTS -- (CONTINUED) THE ASIA TIGERS FUND, INC.
APRIL 30, 1995
NOTE B: MANAGEMENT, INVESTMENT ADVISORY, AND ADMINISTRATIVE SERVICES
Advantage Advisers, Inc., a subsidiary of Oppenheimer, serves as the Fund's
Investment Manager under the terms of a management agreement (the "Management
Agreement"), and BZW serves as the Fund's Investment Adviser under the terms of
an investment advisory agreement (the "Advisory Agreement"). Pursuant to the
Management Agreement, the Investment Manager supervises the Fund's investment
program, including advising and consulting with the Fund's Investment Adviser.
Pursuant to the Advisory Agreement, the Investment Adviser is responsible on a
day-to-day basis for investing the Fund's portfolio in accordance with its
investment objective and policies. For its services, the Investment Manager
receives monthly fees at an annual rate of 1.00% of the Fund's average weekly
net assets and the Investment Adviser receives from the Investment Manager
monthly fees at an annual rate of 0.50% of the Fund's average weekly net assets.
For the six months ended April 30, 1995, fees paid to the Investment Manager,
amounted to $1,184,408, of which the Investment Manager informed the Fund it
paid $592,204 to the Investment Adviser.
Oppenheimer serves as the Fund's administrator (the "Administrator"). The
Administrator provides certain administrative services to the Fund. For its
services, the Administrator receives a monthly fee at an annual rate of 0.2% of
the value of the Fund's average weekly net assets. For the six months ended
April 30, 1995, these fees amounted to $236,881.
The Fund pays each of its directors who is not a director, officer or
employee of the Investment Manager, the Investment Adviser, the Administrator or
any affiliate thereof an annual fee of $5,000 plus up to $700 for each Board of
Directors meeting attended. In addition, the Fund reimburses the directors for
travel and out-of-pocket expenses incurred in connection with Board of Directors
meetings.
NOTE C: PORTFOLIO ACTIVITY
Purchases and sales of securities other than short-term obligations,
aggregated $57,441,390 and $79,154,280, respectively, for the six months ended
April 30, 1995.
27
<PAGE> 28
NOTES TO FINANCIAL STATEMENTS -- (CONTINUED) THE ASIA TIGERS FUND, INC.
APRIL 30, 1995
NOTE D: QUARTERLY RESULTS OF OPERATIONS (UNAUDITED):
<TABLE>
<CAPTION>
NET REALIZED &
UNREALIZED GAIN
(LOSS) ON NET INCREASE
INVESTMENTS, (DECREASE) IN
FOREIGN NET ASSETS
INVESTMENT NET INVESTMENT CURRENCY & RELATED RESULTING FROM
INCOME INCOME (LOSS) TRANSACTIONS OPERATIONS
------------------ ------------------ -------------------- --------------------
TOTAL PER TOTAL PER TOTAL PER TOTAL PER
(000) SHARE (000) SHARE (000) SHARE (000) SHARE
------- ------ ------- ------- --------- ------- --------- -------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
January 31, 1994*.................. $ 827 $ 0.04 $ 95 $ 0.01 $ 4,646 $ 0.23 $ 4,741 $ 0.24
April 30, 1994..................... $ 1,290 $ 0.06 $ 329 $ 0.02 $ (37,658) $ (1.83) $ (37,329) $ (1.81)
July 31, 1994...................... $ 2,003 $ 0.10 $ 1,036 $ 0.05 $ 12,634 $ 0.61 $ 13,670 $ 0.66
October 31, 1994................... $ 816 $ 0.04 $ (505) $ (0.03) $ 18,087 $ 0.88 $ 17,582 $ 0.85
January 31, 1995................... $ 813 $ 0.04 $ (182) $ (0.01) $ (65,448) $ (3.19) $ (65,630) $ (3.20)
April 30, 1995..................... $ 1,590 $ 0.08 $ 683 $ 0.04 $ 17,322 $ 0.83 $ 18,005 $ 0.87
</TABLE>
- ---------------
* From commencement of operations on November 29, 1993.
NOTE E: OTHER
At April 30, 1995, substantially all of the Fund's assets were invested in
Asian securities. The Asian securities markets are substantially smaller, less
liquid, and more volatile than the major securities markets in the United
States. Consequently, acquisitions and dispositions involve special risks and
considerations not present with respect to U.S. securities.
Effective May 12, 1995 the Fund announced that its Board of Directors has
declared a dividend of $.022 per share payable in cash or stock on May 31, 1995
to the shareholders of record on May 25, 1995 with an ex-dividend date of May
19, 1995. This distribution represents ordinary income of $.022 per share.
28
<PAGE> 29
<TABLE>
<S> <C>
THE ASIA TIGERS FUND, INC. [LOGO]
INVESTMENT ADVISER: THE ASIA TIGERS FUND, INC.
BARCLAYS DE ZOETE WEDD Semi-Annual Report
INVESTMENT MANAGEMENT INC. April 30, 1995
INVESTMENT MANAGER:
ADVANTAGE ADVISERS, INC. ADVANTAGE ADVISERS, INC.
ADMINISTRATOR:
OPPENHEIMER & CO., INC.
SUB-ADMINISTRATOR:
PFPC INC.
TRANSFER AGENT:
PNC BANK, NATIONAL ASSOCIATION
CUSTODIAN:
THE CHASE MANHATTAN BANK, N.A.
</TABLE>
