ASIA TIGERS FUND INC, N-30D, 1995-12-27

ASIA TIGERS FUND INC
N-30D, 1995-12-27

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<PAGE> 1

<TABLE>
<S> <C>
THE ASIA TIGERS FUND, INC. [LOGO]
INVESTMENT ADVISER: THE ASIA TIGERS FUND, INC.
BARCLAYS DE ZOETE WEDD Annual Report
INVESTMENT MANAGEMENT INC. October 31, 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>
<PAGE> 2

THE ASIA TIGERS FUND, INC.

December 10, 1995

DEAR FUND SHAREHOLDER,

We are pleased to present you with the audited financial statements of The Asia
Tigers Fund, Inc. (the "Fund") for the fiscal year ended October 31, 1995.

Over the course of the last twelve 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 October 31, 1995 the Fund had 138 positions in 14
countries. We created this Fund to allow investors to participate in the
economic growth we believe will occur throughout Asia. In spite of the
volatility the Fund has experienced over the last year, we remain optimistic
about the fundamentals of the Asian markets. Growth in Asia has continued at
some of the highest rates in the world (between 5-10% annual GDP growth) and we
believe that the underlying economic fundamentals that initially attracted us to
the region remain strong. The Investment Adviser's view of the political and
economic situation in each of the countries in which the Fund is invested should
provide you with insight about how we determine our geographic allocation.

The past year has been a mixed period for the Asian markets. As a result of the
Mexican peso crisis in December of 1994, investors heavily sold emerging market
equity and debt securities. Illustrating the increasingly interdependent nature
of the global economy, the decline in Mexico led to significant declines in the
Asian markets, particularly impacting the Hong Kong, Thai, Singapore and
Malaysian markets. With the Hang Seng leading the way, many of these markets
rebounded during April and May of this year, benefitting from a positive
interest rate environment. However, this rally was cut short and for the one
year trailing period ending October 31, 1995 most Asian markets posted declines.

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> 3

REPORT OF THE INVESTMENT ADVISER

PERFORMANCE

The twelve-month period ended October 31, 1995 was a difficult period for the
Asian markets. Only two of the thirteen markets in which The Asia Tigers Fund,
Inc (the "Fund") invests rose during the fiscal year -- Hong Kong managed a 1.4%
gain while Bangladesh rose 12.4%. All other markets in the region fell between
6% and 41% during the period with the regional benchmark, the MSCI Combined Asia
Ex-Japan Free, dropping 10.14%. These negative returns contrasted sharply with a
generally strong economic environment in the region and reflected the concerns
of investors about interest rates, the sustainability of growth and inflation.

Net asset value per share was $12.08 on October 31, 1995. On a total NAV return
basis, the Fund fell 10.97% for the year ended October 31, 1995 compared with
its benchmark which dropped 10.14%. A dividend of $0.205 per share was paid in
January of 1995 followed by a further $0.022 dividend per share in May of 1995.

COUNTRY ALLOCATION

During the volatile period of the last twelve months, the Fund modified its
geographical allocation. In general, the Investment Adviser tried to be
sensitive to varying interest rate conditions as well as trade and current
account patterns which were either a cause for concern or optimism. The charts
below indicate the Fund's geographical breakdown at each of the Fund's fiscal
year ends.

<TABLE>
<CAPTION>
GEOGRAPHICAL BREAKDOWNS OCTOBER 31, 1994 GEOGRAPHICAL BREAKDOWNS OCTOBER 31, 1995
<S> <C> <C> <C>
SINGAPORE 9.69 SINGAPORE 11.73
PHILIPPINES 3.01 PHILIPPINES 2.53
CHINA 3.75 CHINA 0.35
TAIWAN 2.08 TAIWAN 2.24
MALAYSIA 11.45 MALAYSIA 16.15
INDONESIA 5.95 INDONESIA 6.10
PAKISTAN 1.45 PAKISTAN 0.84
HONG KONG 30.06 HONG KONG 26.88
BANGLADESH 0.64 BANGLADESH 0.51
INDIA 10.58 INDIA 6.20
U.S. 0.04 U.S. 6.77
KOREA 7.99 KOREA 6.62
THAILAND 12.16 THAILAND 12.66
SRI LANKA 1.15 SRI LANKA 0.42
</TABLE>

REGIONAL OUTLOOK

Asia continues to maintain overall high rates of economic growth, a phenomenon
the Investment Adviser believes will continue into 1996 given the region's
savings patterns, productivity and general competitive strength. The Investment
Adviser believes that countries throughout the region will see annual GDP growth
on average between 5% and 10% in 1996, and provided that tax rates continue to
fall and financial liberalization will continue, corporate earnings growth for
1996 should be in the 15% to 30% range. Given the underlying economic growth and
comparatively stable political circumstances, the Investment Adviser believes
that Asian equity markets will perform better than many other emerging market
regions. In addition, the interest rate environment has improved markedly over
the past year and remains one of the positive factors for equity markets in the
Asian region in the year ahead.

<PAGE> 4

During 1993 Asian equity markets were up anywhere from 28% to 154%. 1994 and
part of 1995 have seen most of these same markets suffer serious setbacks,
notwithstanding generally good economic conditions and strong corporate profit
growth. While the Investment Adviser does not believe that the next twelve
months will provide returns like 1993, they do believe that markets will provide
something more in line with the positive underlying economic fundamentals.

The following comments attempt to provide the investor with a brief summary of
the Investment Adviser's view on the Fund's target markets and on some of the
stocks which make up the portfolio.
- --------------------------------------------------------------------------------

BANGLADESH

US$1.2 MILLION, 0.5% OF THE FUND'S NAV, WAS INVESTED IN BANGLADESH AS OF OCTOBER
31, 1995.

The Fund's Bangladesh exposure is focused on a select number of companies listed
on the Dhaka Exchange. Over the next year, the Investment Adviser projects the
Bangladesh economy to grow in excess of 5%, corporate earnings to grow by
approximately 24% and inflation to remain below 5%.

BEXIMCO PHARMACEUTICALS is the third largest company in the Bangladesh market
with a capitalization of US$44 million. Beximco Pharmaceuticals dominates the
local pharmaceutical market with sales for the period of US$45 million and a 13%
market share. The company distributes antibiotics, anti-ulcers, anti-rheumatics,
anti-allergenics, anti-depressants and vitamins.
- --------------------------------------------------------------------------------

CHINA

US$0.8 MILLION, 0.4% OF THE FUND'S NAV, WAS INVESTED IN CHINA AS OF OCTOBER 31,
1995.

The Chinese economy continues to slow from the fast pace of 1993 and 1994.
Government policy to control growth has been more successful than many
forecasters had predicted and it now seems clear that reduced growth will not
lead to a recession. The external trade balance remains healthy with the
merchandise trade surplus growing to US$15.4 billion in the first eight months
of 1995. During the comparable period in 1994, the surplus was US$5.3 billion.
The local equity market is currently trading at about 10.2 times 1996 estimated
earnings per share.

Most of the Fund's China exposure is through Hong Kong or Taiwan-based firms
with major China activities. The Fund holds two issues which trade on the
Shanghai exchange. The largest domestic listed holding in Shanghai is SHANGHAI
DIESEL ENGINES, a producer of diesel engines for construction machinery and
heavy duty vehicles. The Investment Adviser feels that it is one of the best
quality China B share companies available and an important part of the Fund's
China exposure.
- --------------------------------------------------------------------------------

HONG KONG

US$64.5 MILLION, 26.9% OF THE FUND'S NAV, WAS INVESTED IN HONG KONG AS OF
OCTOBER 31, 1995.

While in the Investment Adviser's view many companies in the region will see
slower earnings growth in 1996, Hong Kong corporate profits are estimated to be
11%, and perhaps even higher. Recent land acquisitions by property developers,
such as Cheung Kong and Citic Pacific, signify a willingness to build land banks
at current prices. Optimism is returning to Hong Kong's property market with
lower interest rates and possibly a looser credit policy in China in the first
half of 1996. There are signs of improving Sino-British relations, such as the
PRC Foreign Minister's recent visit to London, which bode well for a smoother
period of transition and less investor tension as a result. The Fund's Hong Kong
exposure has been moving to a more bullish stance as a result of the better

3
<PAGE> 5

background environment. The Fund is slightly overweighted in property
development companies, conglomerates and banking and underweighted in utilities.

HUTCHISON WHAMPOA ("Hutch") is the Fund's largest holding. Hutch is one of the
largest conglomerates in Hong Kong and is actively involved in five broad
industries: 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. The company
operates three large retail chains in Asia as well as paging and mobile phone
services in Hong Kong. In the Investment Adviser's opinion, the company is one
of the most astute managers of its business portfolio in Asia with excellent
China links and strong, long term growth prospects.
- --------------------------------------------------------------------------------

INDIA

US$14.9 MILLION, 6.2% OF THE FUND'S NAV, WAS INVESTED IN INDIA AS OF OCTOBER 31,
1995.

Political uncertainty has prevented the Indian market from performing as well as
it might, given the strong pace of India's continued economic reform program and
the country's general economic success. Elections are due in the first half of
1996. Once completed, the Investment Adviser believes investors will refocus on
the attractive long-term fundamentals of one of the largest economies in the
world as it continues to move toward a free market. Indian equities remain
attractively priced at about 11 times estimated earnings for the year ended
March 31, 1996, which are expected to grow 25-30% after an increase of over 40%
for the year ended March 31, 1995. Foreign investor concern over the settlement
system should be mitigated by the announcement of a national share depository
and related improvements in market mechanisms although implementation of a
national depository is several years away. After a long period of stability, the
Indian Rupee recently eroded in value relative to the U.S. dollar by about 11%
(from 31.5 to 35 Rupees/$).

The Fund has recently been increasing its direct holdings of Indian companies
and expects to continue this process slowly during the coming year. India has a
diverse industrial base which the Investment Adviser expects will be
increasingly successful competing in world markets.

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 manufacturing expertise in synthetic fibers, fiber
intermediaries, textiles, blended yarn, and a broad range of petrochemical
products. Reliance has the largest production capacities in each of its product
segments.
- --------------------------------------------------------------------------------

INDONESIA

US$14.6 MILLION, 6.1% OF THE FUND'S NAV, WAS INVESTED IN INDONESIA AS OF OCTOBER
31, 1995.

Indonesia is a market the Investment Adviser continues to favor. It offers the
opportunity for superior profit growth and is one of the least expensive markets
in Asia. The government is committed to a long-term deregulation plan and has
offered attractive incentives for Foreign Direct Investment. In the first half
of 1995, Foreign Direct Investments approvals topped US$20 billion. This
compares to 1994's full year approvals of US$24 billion. The Investment Adviser
believes that interest rates will decline modestly in Indonesia over the next
several months adding to the generally good investment environment.

4
<PAGE> 6

The Fund is overweighted in consumer and banking stocks and underweighted in
property stocks. INDO SATELLITE CORP. is the Fund's largest Indonesian holding.
The company provides 98% of Indonesia's international telephone services in
addition to providing mobile phone services. In Indonesia, there is one phone
for every 16 people. In contrast, the ratio in the United States is one phone
for every 1.3 people. Indostat stands to benefit from future growth in telephone
use.
- --------------------------------------------------------------------------------

KOREA

US$15.9 MILLION, 6.6% OF THE FUND'S NAV, WAS INVESTED IN KOREA AS OF OCTOBER 31,
1995.

Prior to 1992, foreigners were not allowed to directly invest in Korea.
Successive liberalizations since then have permitted an increasing exposure to
an economy we continue to find exciting as a source of investment opportunities.
On July 1, 1995, the Korean government increased the limit on foreign ownership
of Korean companies from 12% to 15% as part of an on-going process to open the
capital markets. Prior to the end of 1996, it is expected that the limit will be
increased again to at least 25%. Corporate earnings were up 53% in 1994 and
earnings will continue to be strong in 1995 and into 1996 as well. In addition,
stocks are under-valued on an historical basis, interest rates appear to be
headed lower and liquidity has been improving. The Fund's holdings include those
in large exporting companies such as Samsung Electronics and Hyundai Motor, but
also in sectors which will benefit from lower interest rates and increased
infrastructure investments.

SAMSUNG ELECTRONICS is the world's largest producer of computer memory chips.
The company has seen its profits grow from US$200 million in 1993 to US$1.2
billion in 1994. Profits are estimated to top US$3 billion in 1995. In addition
to computer memory chips, Samsung produces a wide range of consumer and
industrial electronic equipment including semi-conductors, computers,
telecommunications equipment and color television sets. Samsung's stock is the
least expensive (in price-earnings ratio terms) in Asia. Based on 1996 estimated
earnings per share, the company has been trading at less than 6 times earnings.
- --------------------------------------------------------------------------------

MALAYSIA

US$38.8 MILLION, 16.2% OF THE FUND'S NAV, WAS INVESTED IN MALAYSIA AS OF OCTOBER
31, 1995.

The Malaysian stock market is trading at the low/middle end of its historic
price earnings ratio band. The Investment Adviser estimates that economic growth
will remain strong into 1996 and inflation has remained relatively low. One
major concern is the trade deficit which has risen to M$6.8 billion for the
first seven months of the year versus M$0.5 billion for the same period in 1994.
The government has attempted to justify the imbalance by pointing to the high
percentage of capital goods imports, but many investors have remained
unconvinced. A large current account deficit mars the otherwise attractive
economic picture and has caused the Fund to be somewhat underweighted in
Malaysia.

The Fund is overweighted in banking, gaming and consumer stocks while
underweighted in property and utility companies. The Fund's largest Malaysian
investment is GENTING BERHAD. Genting's activities include gaming, hotels and
resort-related activities, plantations, property development, and tour/travel
related services.

5
<PAGE> 7

- --------------------------------------------------------------------------------

PAKISTAN

US$2.0 MILLION, 0.8% OF THE FUND'S NAV, WAS INVESTED IN PAKISTAN AS OF OCTOBER
31, 1995.

The investment climate in Pakistan continues to be overshadowed by political
violence. Fundamental valuations remain attractive with corporate profit growth
over 20% benefitting from a 5% plus rate of increase in the overall economy. The
Pakistan Rupee was devalued about 8% in October. Notwithstanding the potential
in Pakistan, the Fund will continue to maintain a low investment profile until
the political environment improves.

The Fund's largest holding in Pakistan is PAKISTAN STATE OIL, the country's
largest oil marketing company with 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.
- --------------------------------------------------------------------------------

PHILIPPINES

US$6.1 MILLION, 2.5% OF THE FUND'S NAV, WAS INVESTED IN THE PHILIPPINES AS OF
OCTOBER 31, 1995.

A combination of poor weather and excess liquidity has caused inflation to surge
in the Philippines with an understandably negative impact on the equity market
in recent months. The market is trading at a discount to its historic average,
while profit growth has remained strong and the economy grew at a rate of 5.5%
for the year. However, the potential for economic overheating and questions
about political commitment to a balanced economic policy remain key investor
concerns in a market which has fairly high absolute valuation levels. Our
exposure reflects this mixed set of circumstances as the portfolio favors
sectors such as banking, property and the consumer sector.

In the Philippines, the Fund's top holding is PHILIPPINE LONG DISTANCE
TELEPHONE. The company has a monopoly which runs until 2028 and covers virtually
all types of telecommunication services. The company is responsible for 90% of
all installed domestic lines and controls the international call network.
- --------------------------------------------------------------------------------

SINGAPORE

US$28.1 MILLION, 11.7% OF THE FUND'S NAV, WAS INVESTED IN SINGAPORE AS OF
OCTOBER 31, 1995.

In the Investment Adviser's opinion, the Singapore government continues to do an
exceptional job of economic management and Singapore's growing impact in the
region is undeniable. Although slowing from double digit growth in 1993 and
1994, the Investment Adviser estimates that Singapore's economy will grow
between 7-8% in 1996. The Fund's focus has been on banking and property stocks,
and the Investment Adviser has remained skeptical about an often predicted ship
repair recovery.

The Fund's largest position in Singapore is SINGAPORE AIRLINES. Singapore
Airlines is one of the world's largest carriers with one of the best service
reputations. The company's air fleet has the lowest average age of any major
airline -- just 5.7 years, with a conservative depreciation policy for aircraft
of only 10 years versus the industry standard of 20 years. The airline is not
only in the top tier for service but has produced profits through the global
industry downturn. Singapore Airlines is one of the Fund's top ten holdings and
is positioned, the Investment Adviser believes, to outperform the broader
Singapore market.

6
<PAGE> 8

- --------------------------------------------------------------------------------

SRI LANKA

US$1.0 MILLION, 0.4% OF THE FUND'S NAV, WAS INVESTED IN SRI LANKA AS OF OCTOBER
31, 1995.

Sri Lanka remains under a cloud from the civil war in the north of the country.
In addition, 1995 has disappointed investors with lower than expected economic
growth and higher than expected inflation. For 1995, the economy is expected to
grow 5.1% with inflation at about 9%. The Sri Lankan Rupee has been devalued
about 5% so far this year.

The Fund maintains a modest strategic exposure in Sri Lanka in light of the good
growth possibilities as the country adopts market-oriented policies. RICHARD
PIERES & CO. is the Fund's largest Sri Lankan holding. The Company has interests
in retailing, rubber & plastic manufacturing and tire retreading. In addition to
its traditional export-oriented rubber and plastic businesses, the company has
set up mini-malls in suburbs surrounding Colombo to serve a growing pool of
middle income consumers.
- --------------------------------------------------------------------------------

TAIWAN

US$5.4 MILLION, 2.2% OF THE FUND'S NAV, WAS INVESTED IN TAIWAN AS OF OCTOBER 31,
1995.

Taiwan has had a challenging year with a domestic financial scandal, political
uncertainty, missile tests, capital flight and a depreciating currency. However,
foreigners appear to remain convinced that the market's relatively inexpensive
valuations are compelling. The Central Bank has lowered its reserve ratio which
should help liquidity. Inflation has remained under control and below the
government's target of 4% for the full year.

The Fund's largest holding in Taiwan is CHINA STEEL. Because of its
state-of-the-art facilities, low cost labor, port location, strong domestic
demand and conservative capital structure, China Steel is regarded as one of the
world's most efficient and profitable steel producers. The company has current
production capacity of 5.7 million tons and it is estimated that capacity will
expand to 8.1 million tons by mid-1997.
- --------------------------------------------------------------------------------

THAILAND

US$30.4 MILLION, 12.7% OF THE FUND'S NAV, WAS INVESTED IN THAILAND AS OF OCTOBER
31, 1995.

The Thai economy is still strong and is estimated to grow by approximately 8.5%
in 1995. Corporate earnings growth for both 1995 and 1996 are estimated to be
19% and there are early signs of improvement in the trade account. Inflation
remains a concern as it rose to 5.3% in the first eight months of 1995. A
growing current account deficit has added to the general feeling that growth has
been a bit too strong and that liquidity has been more relaxed than should be
the case. These issues seem to have been recognized by the authorities who are
now instituting more restrictive monetary policies. The otherwise appealing
investment picture in Thailand leaves us maintaining a significant market
exposure.

The Fund is overweighted in banking, finance, energy and communication stocks
while underweighted in the building materials and property sectors. The Fund's
largest holding in Thailand is THAI FARMER'S BANK, the country's third largest
bank in terms of total assets. The bank has over 14% of the deposit market, 13%
of the loan market and one of the healthiest loan portfolios of any bank in
Thailand.
- --------------------------------------------------------------------------------

BZW INVESTMENT MANAGEMENT
London & Hong Kong
December 10, 1995

7
<PAGE> 9

SCHEDULE OF INVESTMENTS THE ASIA TIGERS FUND, INC.
OCTOBER 31, 1995

<TABLE>
<CAPTION>
No.
of Shares Security Cost Value
- --------- --------------------------------------------------------------- ------------- -------------
<C> <S> <C> <C>
COMMON STOCKS -- 85.23%
BANGLADESH -- 0.51%
Health Care -- 0.26%
6,200 Beximco Infusions.............................................. $ 111,625 $ 76,060
250,000 Beximco Pharmaceuticals........................................ 726,264 560,037
------------- -------------
837,889 636,097
------------- -------------
Manufacturing -- 0.07%
35,830 GQ Ball Pen.................................................... 95,802 165,457
------------- -------------
Textiles -- 0.14%
33,750 Padma Textile Mills............................................ 304,177 326,208
------------- -------------
Tobacco -- 0.04%
19,968 Bangladesh Tobacco............................................. 93,851 86,602
------------- -------------
TOTAL BANGLADESH............................................... 1,331,719 1,214,364
------------- -------------
CHINA -- 0.35%
Automobiles & Auto Parts -- 0.18%
1,000,000 Shanghai Diesel Engines & Co. B ADR............................ 870,258 442,000
------------- -------------
Textiles -- 0.14%
1,193,000 Sanmao Textile Co. B ADR....................................... 584,904 322,110
------------- -------------
Transportation -- 0.03%
700,000 Shanghai Haixing Shipping Co. Ltd. ............................ 133,603 72,434
------------- -------------
TOTAL CHINA.................................................... 1,588,765 836,544
------------- -------------
HONG KONG -- 25.77%
Banking -- 6.48%
393,306 Bank of East Asia.............................................. 1,306,941 1,386,278
430,000 Hang Seng Bank................................................. 3,928,964 3,601,317
604,478 HSBC Holdings PLC.............................................. 7,873,271 8,796,018
4,500,000 Merrill Lynch-HSBC Holdings PLC Warrants (Expiration date
9/20/96*..................................................... 1,589,839 1,775,274
------------- -------------
14,699,015 15,558,887
------------- -------------
Engineering & Construction -- 0.07%
92,600 New World Infrastructure*...................................... 154,247 162,893
------------- -------------
Holding Company -- 7.74%
675,000 Citic Pacific.................................................. 1,687,414 2,108,502
1,625,000 Hutchinson Whampoa............................................. 7,440,596 8,953,979
1,640,000 Hutchinson Whampoa Warrants (Expiration date 6/28/96)*......... 350,863 328,798
940,000 Swire Pacific A................................................ 7,118,277 7,051,945
1,000,000 Swire Pacific A Warrants (Expiration date 4/15/96)*............ 137,134 120,292
------------- -------------
16,734,284 18,563,516
------------- -------------
</TABLE>

8
<PAGE> 10

SCHEDULE OF INVESTMENTS THE ASIA TIGERS FUND, INC.
OCTOBER 31, 1995 (CONTINUED)

<TABLE>
<CAPTION>
No.
of Shares Security Cost Value
- --------- --------------------------------------------------------------- ------------- -------------
<C> <S> <C> <C>
HONG KONG (CONTINUED)
Hotel & Restaurant -- 0.42%
800,000 Hong Kong & Shanghai Hotels.................................... $ 1,245,866 $ 1,003,725
------------- -------------
Real Estate -- 6.33%
650,000 Cheung Kong Holdings........................................... 3,455,100 3,665,666
770,000 Hong Kong Land Holdings ADR.................................... 1,925,972 1,386,000
890,000 New World Development Ltd. .................................... 2,899,205 3,465,051
730,000 Sun Hung Kai Properties........................................ 5,859,324 5,830,596
250,000 Wharf Holdings................................................. 792,325 843,983
------------- -------------
14,931,926 15,191,296
------------- -------------
Utilities -- 4.73%
540,000 China Light & Power............................................ 3,661,166 2,877,690
1,330,000 Hong Kong & China Gas.......................................... 2,122,857 2,158,979
410,000 Hong Kong Electric............................................. 1,582,524 1,394,738
2,820,000 Hong Kong Telecom.............................................. 5,581,544 4,924,203
------------- -------------
12,948,091 11,355,610
------------- -------------
TOTAL HONG KONG................................................ 60,713,429 61,835,927
------------- -------------
INDIA -- 2.13%
Automobile -- 0.20%
20,900 Bajaj Auto Ltd. ............................................... 500,659 489,692
------------- -------------
Computers -- 0.19%
90,000 NIIT Ltd. ..................................................... 452,886 457,848
------------- -------------
Food & Beverage -- 0.67%
175,000 ITC Ltd. GDR 144A**............................................ 1,948,000 1,596,875
------------- -------------
Health Care -- 0.35%
45,000 Ranbaxy Labs................................................... 974,791 842,442
------------- -------------
Textiles -- 0.17%
20,000 Grasim GDS..................................................... 516,250 417,500
------------- -------------
Transportation -- 0.55%
150,000 Great Eastern Shipping Co. Ltd. GDR 144A**..................... 2,096,938 1,313,250
------------- -------------
TOTAL INDIA.................................................... 6,489,524 5,117,607
------------- -------------
INDONESIA -- 6.10%
Automobiles & Auto Parts -- 0.53%
200,000 PT Astra International-Foreign................................. 436,902 401,411
440,000 United Tractors-Foreign........................................ 1,053,575 873,401
------------- -------------
1,490,477 1,274,812
------------- -------------
</TABLE>

9
<PAGE> 11

SCHEDULE OF INVESTMENTS THE ASIA TIGERS FUND, INC.
OCTOBER 31, 1995 (CONTINUED)

<TABLE>
<CAPTION>
No.
of Shares Security Cost Value
- --------- --------------------------------------------------------------- ------------- -------------
<C> <S> <C> <C>
INDONESIA (CONTINUED)
Banking -- 0.64%
617,000 Panin Bank-Foreign............................................. $ 728,109 $ 680,415
240,000 PT Bank International Indonesia-Foreign........................ 867,154 841,641
------------- -------------
1,595,263 1,522,056
------------- -------------
Conglomerate -- 0.18%
573,500 Bimantara Citra-Foreign*....................................... 412,003 442,711
------------- -------------
Construction -- 1.32%
340,000 Indocement Tunggal Prakarsa-Foreign............................ 1,285,865 1,259,815
730,000 Semen Gresik-Foreign........................................... 2,055,131 1,899,868
------------- -------------
3,340,996 3,159,683
------------- -------------
Electronics -- 0.19%
75,000 Modern Photo Film-Foreign...................................... 480,618 456,550
------------- -------------
Food & Beverage -- 1.31%
200,000 Gudang Garam-Foreign........................................... 811,239 1,742,391
300,000 PT Indofoods-Foreign........................................... 1,315,443 1,389,502
------------- -------------
2,126,682 3,131,893
------------- -------------
Manufacturing -- 0.31%
300,000 PT Sucaco-Foreign.............................................. 937,847 741,067
------------- -------------
Paper -- 0.29%
719,400 Indah Kiat Paper-Foreign....................................... 932,535 706,072
------------- -------------
Telecommunications -- 0.85%
600,000 Indo Satellite Corp.-Foreign................................... 2,352,758 2,037,935
------------- -------------
Tobacco -- 0.48%
125,000 Hanjaya Mandal Sampoerna-Foreign............................... 631,854 1,157,918
------------- -------------
TOTAL INDONESIA................................................ 14,301,033 14,630,697
------------- -------------
KOREA -- 6.62%
Airlines -- 0.14%
9,100 Korean Air Lines Co. .......................................... 344,727 347,780
------------- -------------
Automobiles -- 0.35%
13,000 Hyundai Motor Co. ............................................. 858,593 851,042
------------- -------------
Banking -- 0.79%
80,000 Shinhan Bank................................................... 1,772,419 1,899,882
------------- -------------
Chemicals -- 0.54%
52,980 L.G. Chemicals................................................. 1,351,661 1,287,190
------------- -------------
</TABLE>

10
<PAGE> 12

SCHEDULE OF INVESTMENTS THE ASIA TIGERS FUND, INC.
OCTOBER 31, 1995 (CONTINUED)

<TABLE>
<CAPTION>
No.
of Shares Security Cost Value
- --------- --------------------------------------------------------------- ------------- -------------
<C> <S> <C> <C>
KOREA (CONTINUED)
Communications -- 0.14%
350 Korea Mobile Telecommunications................................ $ 299,870 $ 330,847
------------- -------------
Electronics -- 2.07%
17,000 L.G. Electronics............................................... 567,409 731,016
17,500 Samsung Electric Co. .......................................... 3,310,086 3,946,386
1,545 Samsung Electric Co. GDR New 144A**............................ 73,359 183,083
224 Samsung Electric Co. New GDS................................... 12,067 26,544
387 Samsung Electric Co. New 3 Shares.............................. 41,473 85,973
------------- -------------
4,004,394 4,973,002
------------- -------------
Engineering -- 0.15%
6,400 Hyundai Engineering............................................ 344,691 352,474
------------- -------------
Iron & Steel -- 0.84%
20,200 Pohang Iron & Steel Co. ....................................... 2,080,506 2,009,804
------------- -------------
Manufacturing -- 0.09%
16,200 Daewoo Heavy Industries........................................ 205,851 210,678
------------- -------------
Oil -- 0.11%
7,103 Yukong New..................................................... 230,216 258,088
------------- -------------
Utilities -- 1.40%
75,000 Korea Electric Power........................................... 2,980,433 3,375,000
------------- -------------
TOTAL KOREA.................................................... 14,473,361 15,895,787
------------- -------------
MALAYSIA -- 14.31%
Banking -- 2.37%
465,000 DCB Holdings Berhad............................................ 1,102,676 1,317,851
540,000 Malayan Banking................................................ 3,666,472 4,357,410
------------- -------------
4,769,148 5,675,261
------------- -------------
Finance -- 0.97%
345,000 Arab Malaysian Finance-Foreign................................. 1,285,561 1,208,620
450,000 Rashid Hussain................................................. 1,500,010 1,115,922
------------- -------------
2,785,571 2,324,542
------------- -------------
Holding Company -- 1.19%
1,144,000 Sime Darby Berhad.............................................. 3,091,131 2,859,437
------------- -------------
Leisure -- 3.89%
858,000 Genting Berhad................................................. 8,078,274 7,396,261
1,145,000 Magnum Corp. Berhad............................................ 2,520,521 1,947,018
------------- -------------
10,598,795 9,343,279
------------- -------------
Machinery -- 0.51%
515,000 UMW Holdings................................................... 1,428,033 1,226,432
------------- -------------
</TABLE>

11
<PAGE> 13

SCHEDULE OF INVESTMENTS THE ASIA TIGERS FUND, INC.
OCTOBER 31, 1995 (CONTINUED)

<TABLE>
<CAPTION>
No.
of Shares Security Cost Value
- --------- --------------------------------------------------------------- ------------- -------------
<C> <S> <C> <C>
MALAYSIA (CONTINUED)
Tobacco -- 0.87%
1,020,000 RJ Reynolds.................................................... $ 2,429,004 $ 2,087,778
------------- -------------
Transportation -- 1.87%
1,450,000 Malaysian Helicopter........................................... 2,540,259 2,031,884
100,000 Malaysian Helicopter Warrants (Expiration date 6/11/00)*....... 47,724 40,937
920,000 Malaysian International Shipping-Foreign....................... 2,894,912 2,426,294
------------- -------------
5,482,895 4,499,115
------------- -------------
Utilities -- 2.64%
410,000 Telekom Malaysia Berhad........................................ 3,258,788 2,937,217
900,000 Tenaga Nasional Berhad......................................... 3,675,371 3,400,905
------------- -------------
6,934,159 6,338,122
------------- -------------
TOTAL MALAYSIA................................................. 37,518,736 34,353,966
------------- -------------
PAKISTAN -- 0.84%
Banking -- 0.01%
29,895 Muslim Commercial Bank......................................... 49,705 33,858
------------- -------------
Chemicals -- 0.03%
51,000 Fauji Fertilizer Co. .......................................... 126,084 81,982
------------- -------------
Construction -- 0.06%
127,000 DG Khan Cement................................................. 321,673 139,193
------------- -------------
Finance -- 0.13%
50,000 Pakistan Investment Fund....................................... 563,125 300,000
------------- -------------
Food Products -- 0.22%
150,000 Packages....................................................... 858,028 517,317
------------- -------------
Oil -- 0.39%
90,000 Pakistan State Oil............................................. 1,004,444 941,692
------------- -------------
TOTAL PAKISTAN................................................. 2,923,059 2,014,042
------------- -------------
PHILIPPINES -- 2.53%
Banking -- 0.26%
34,000 Metropolitan Bank.............................................. 586,462 628,176
------------- -------------
Food & Beverage -- 0.31%
1,796,000 Universal Robina Corp. ADR..................................... 1,132,346 736,360
------------- -------------
Holding Company -- 0.16%
1,400,000 JG Summit Holdings B........................................... 423,937 393,380
------------- -------------
</TABLE>

12
<PAGE> 14

SCHEDULE OF INVESTMENTS THE ASIA TIGERS FUND, INC.
OCTOBER 31, 1995 (CONTINUED)

<TABLE>
<CAPTION>
No.
of Shares Security Cost Value
- --------- --------------------------------------------------------------- ------------- -------------
<C> <S> <C> <C>
PHILIPPINES (CONTINUED)
Oil & Gas -- 0.34%
1,828,900 Petron Corp. .................................................. $ 1,016,908 $ 809,559
------------- -------------
Real Estate -- 0.42%
1,500,000 Filinvest Land Inc. B*......................................... 380,083 404,157
3,300,000 Robinson's Land Corp.*......................................... 559,566 489,030
400,000 SM Prime*...................................................... 125,078 107,775
------------- -------------
1,064,727 1,000,962
------------- -------------
Tobacco -- 0.14%
100,000 San Miguel B................................................... 389,895 331,024
------------- -------------
Utilities -- 0.90%
50,000 Manilla Electric Company B..................................... 375,024 373,364
32,000 Philippine Long Distance Telephone ADR......................... 1,848,415 1,796,000
------------- -------------
2,223,439 2,169,364
------------- -------------
TOTAL PHILIPPINES.............................................. 6,837,714 6,068,825
------------- -------------
SINGAPORE -- 11.73%
Airlines -- 2.24%
580,000 Singapore Airlines-Foreign..................................... 5,354,633 5,379,115
------------- -------------
Automobiles -- 0.06%
17,000 Cycle & Carriage............................................... 145,449 151,646
------------- -------------
Banking -- 4.12%
270,000 Development Bank of Singapore-Foreign.......................... 2,765,685 3,096,637
250,000 Overseas Chinese Bank Corp.-Foreign............................ 2,550,940 2,938,053
440,000 United Overseas Bank-Foreign................................... 4,248,597 3,862,655
------------- -------------
9,565,222 9,897,345
------------- -------------
Food & Beverage -- 0.74%
150,000 Fraser & Neave Ltd. ........................................... 1,743,087 1,773,451
------------- -------------
Hotel & Restaurant -- 0.74%
1,425,000 Republic Hotels................................................ 2,591,167 1,654,513
285,000 Republic Hotels Warrants (Expiration date 7/12/00)*............ 102,041 118,035
------------- -------------
2,693,208 1,772,548
------------- -------------
Media -- 0.59%
90,000 Singapore Press-Foreign........................................ 1,295,024 1,408,142
------------- -------------
Real Estate -- 2.05%
75,000 Bukit Sembawang Estates........................................ 1,636,593 1,603,540
430,000 City Developments.............................................. 1,531,739 2,663,717
151,000 City Developments Warrants (Expiration date 7/18/98)*.......... 645,991 641,416
------------- -------------
3,814,323 4,908,673
------------- -------------
</TABLE>

13
<PAGE> 15

SCHEDULE OF INVESTMENTS THE ASIA TIGERS FUND, INC.
OCTOBER 31, 1995 (CONTINUED)

<TABLE>
<CAPTION>
No.
of Shares Security Cost Value
- --------- --------------------------------------------------------------- ------------- -------------
<C> <S> <C> <C>
SINGAPORE (CONTINUED)
Shipbuilding -- 0.68%
200,000 Keppel Corporation............................................. $ 1,622,402 $ 1,642,478
------------- -------------
Transportation -- 0.51%
40,000 Jurong Shipyard................................................ 268,709 266,195
340,000 Straits Steamship Land Ltd. ................................... 1,059,998 953,203
------------- -------------
1,328,707 1,219,398
------------- -------------
TOTAL SINGAPORE................................................ 27,562,055 28,152,796
------------- -------------
SRI LANKA -- 0.42%
Finance -- 0.19%
80,000 Development Finance Company of Ceylon.......................... 617,294 472,521
------------- -------------
Manufacturing -- 0.23%
78,350 Korea Ceylon Footwear*......................................... 218,193 26,816
361,806 Richard Pieris & Co. .......................................... 1,264,987 520,101
------------- -------------
1,483,180 546,917
------------- -------------
TOTAL SRI LANKA................................................ 2,100,474 1,019,438
------------- -------------
TAIWAN -- 1.26%
Electronics -- 0.42%
10,000 Acer Inc. GDR*................................................. 129,900 128,750
70,000 Advanced Semiconductor Engineering GDR*........................ 1,031,000 892,500
------------- -------------
1,160,900 1,021,250
------------- -------------
Steel -- 0.84%
110,000 China Steel GDR*............................................... 2,227,500 2,007,500
------------- -------------
TOTAL TAIWAN................................................... 3,388,400 3,028,750
------------- -------------
THAILAND -- 12.66%
Banking -- 6.11%
385,000 Bangkok Bank-Foreign........................................... 3,698,401 3,989,637
350,000 Bank of Ayudhya-Foreign........................................ 1,799,157 2,022,718
315,000 Krung Thai Bank-Foreign........................................ 996,776 1,255,480
241,000 Siam Commercial Bank-Foreign................................... 2,331,298 2,823,994
550,000 Thai Farmer's Bank-Foreign..................................... 3,543,985 4,559,586
------------- -------------
12,369,617 14,651,415
------------- -------------
Computers -- 0.90%
88,000 Shinawatra Computers-Foreign................................... 2,585,050 2,160,542
------------- -------------
Construction -- 1.40%
61,400 Siam Cement-Foreign............................................ 3,337,089 3,357,545
------------- -------------
</TABLE>

14
<PAGE> 16

SCHEDULE OF INVESTMENTS THE ASIA TIGERS FUND, INC.
OCTOBER 31, 1995 (CONTINUED)

<TABLE>
<CAPTION>
Par
($000)
- ---------
<C> <S> <C> <C>
CONVERTIBLE BONDS -- 8.00%
HONG KONG -- 1.11%
Real Estate -- 1.11%
2,500 Wharf 144A 5.00%, 07/15/00**................................... 2,359,428 2,675,000
------------- -------------
TOTAL HONG KONG................................................ 2,359,428 2,675,000
------------- -------------
INDIA -- 4.07%
Construction -- 0.59%
1,000 Gujarat Ambuja 3.50%, 06/30/99................................. 1,618,125 1,400,000
------------- -------------
Metals & Mining -- 1.84%
2,250 Jindal Strips 4.25%, 03/31/99.................................. 2,610,815 2,131,875
2,750 Sterlite Industries Ltd. 144A 3.50%, 06/30/99**................ 3,223,518 2,289,375
------------- -------------
5,834,333 4,421,250
------------- -------------
Textiles -- 1.64%
3,750 Reliance Industries Ltd. 144A 3.50%, 11/03/99**................ 5,104,688 3,928,125
------------- -------------
TOTAL INDIA.................................................... 12,557,146 9,749,375
------------- -------------
MALAYSIA -- 1.84%
Real Estate -- 1.84%
4,000 United Engineers 144A 2.00%, 03/01/04**........................ 4,238,646 4,420,000
------------- -------------
TOTAL MALAYSIA................................................. 4,238,646 4,420,000
------------- -------------
</TABLE>

15
<PAGE> 17

SCHEDULE OF INVESTMENTS THE ASIA TIGERS FUND, INC.
OCTOBER 31, 1995 (CONCLUDED)

<TABLE>
<CAPTION>
Par
($000) Security Cost Value
- --------- --------------------------------------------------------------- ------------- -------------
<C> <S> <C> <C>
TAIWAN -- 0.98%
Electronics -- 0.42%
750 United Micro Electronics 144A 1.25%, 06/08/04**................ $ 1,117,750 $ 1,014,375
------------- -------------
Transportation -- 0.56%
1,250 Yangming 2.00%, 10/06/01....................................... 1,373,750 1,343,750
------------- -------------
TOTAL TAIWAN................................................... 2,491,500 2,358,125
------------- -------------
TOTAL CONVERTIBLE BONDS........................................ 21,646,720 19,202,500
------------- -------------
</TABLE>

<TABLE>
<CAPTION>
No.
of Shares
- ---------
<C> <S> <C> <C>
SHORT TERM OBLIGATIONS -- 6.77%
MUTUAL FUND -- 0.23%
550,097 Temporary Investment Fund, Inc. ............................... 550,097 550,097
------------- -------------
TOTAL MUTUAL FUND.............................................. 550,097 550,097
------------- -------------
</TABLE>

<TABLE>
<CAPTION>
Par
($000)
- ---------
<C> <S> <C> <C>
TIME DEPOSITS -- 6.54%
5,700 Chase Manhattan Bank London Time Deposit 5.6875%, 11/02/95..... 5,700,000 5,700,000
4,000 Chase Manhattan Bank London Time Deposit 5.6875%, 11/07/95..... 4,000,000 4,000,000
6,000 Chase Manhattan Bank London Time Deposit 5.5625%, 11/24/95..... 6,000,000 6,000,000
------------- -------------
TOTAL TIME DEPOSITS............................................ 15,700,000 15,700,000
------------- -------------
TOTAL SHORT TERM OBLIGATIONS................................... 16,250,097 16,250,097
------------- -------------
TOTAL INVESTMENTS -- 100%***................................... $ 244,898,827 $ 239,996,302
============= =============
</TABLE>

- ---------------

<TABLE>
<C> <S>
ADR -- American Depositary Receipts
GDR -- Global Depositary Receipts
GDS -- Global Depositary Shares
* Non-income producing security.
** 144A -- Restricted as to resale to institutional investors
*** Aggregate cost for Federal income tax purposes is $245,680,062
The aggregate gross unrealized appreciation (depreciation) for all securities is as follows:
Excess of value over tax cost $ 15,081,750
Excess of tax cost over value (20,765,510)
-------------
($ 5,683,760)
=============
</TABLE>

See accompanying notes to financial statements.

16
<PAGE> 18

STATEMENT OF ASSETS AND LIABILITIES THE ASIA TIGERS FUND, INC.

<TABLE>
<CAPTION>
OCTOBER 31,
1995
-------------
<S> <C>
ASSETS:
Investments at value (Cost $244,898,827)................................. $ 239,996,302
Cash (including $722,180 of foreign currency holdings with a
cost of $724,125)...................................................... 1,089,461
Receivables:
Dividends........................................................... 78,317
Interest............................................................ 244,260
Securities sold..................................................... 9,237,986
Unamortized organization costs........................................... 74,965
Prepaid expenses......................................................... 112,610
-------------
Total assets................................................... 250,833,901
-------------
LIABILITIES:
Payable for securities purchased......................................... 2,414,970
Due to investment manager................................................ 214,332
Due to administrator..................................................... 42,866
Accrued expenses......................................................... 400,485
-------------
Total liabilities.............................................. 3,072,653
-------------
NET ASSETS............................................................... $ 247,761,248
=============
NET ASSET VALUE PER SHARE ($247,761,248 / 20,514,984).................... $12.08
======
Net assets consist of:
Capital stock, ($.001 par value; 20,514,984 shares of common stock
issued and outstanding, 100,000,000 shares authorized)............. $ 20,515
Paid-in capital..................................................... 286,511,528
Undistributed net investment income................................. 1,204,542
Accumulated net realized loss on investments and foreign currency
related transactions.............................................. (35,064,675)
Net unrealized depreciation in value of investments and translation
of assets and liabilities denominated in foreign currencies........ (4,910,662)
-------------
$ 247,761,248
=============
</TABLE>

See accompanying notes to financial statements.

17
<PAGE> 19

STATEMENT OF OPERATIONS THE ASIA TIGERS FUND, INC.
FOR THE YEAR ENDED OCTOBER 31, 1995

<TABLE>
<S> <C> <C>
INVESTMENT INCOME:
Dividends (Net of taxes withheld of $376,399)............................... $ 3,932,037
Interest.................................................................... 1,872,882
-------------
Total investment income..................................................... 5,804,919
-------------
EXPENSES:
Management fees............................................... $ 2,453,731
Custodian fees................................................ 621,257
Administration fees........................................... 490,746
Directors' fees............................................... 21,735
Transfer agent fees........................................... 44,312
Printing...................................................... 110,274
Legal fees.................................................... 102,235
Audit fees.................................................... 69,095
Insurance..................................................... 72,555
Amortization of organizational cost........................... 24,341
NYSE fees..................................................... 29,950
Miscellaneous................................................. 17,805
-----------
Total expenses...................................... 4,058,036
-------------
Net investment income....................................................... 1,746,883
-------------
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....................................................... (35,431,421)
Foreign currency related transactions....................................... 135,959
-------------
(35,295,462)
Net change in unrealized appreciation in value of investments and
translation of assets and liabilities denominated in foreign currencies... 1,078,455
-------------
Net realized and unrealized loss on investments, foreign currency holdings
and other assets and liabilities denominated in foreign currencies........ (34,217,007)
-------------
Net decrease in net assets resulting from operations........................ $ (32,470,124)
=============
</TABLE>

See accompanying notes to financial statements.

18
<PAGE> 20

STATEMENTS OF CHANGES IN NET ASSETS THE ASIA TIGERS FUND, INC.

<TABLE>
<CAPTION>
FOR THE PERIOD
NOVEMBER 29, 1993
(COMMENCEMENT
FOR THE OF OPERATIONS)
YEAR ENDED THROUGH
OCTOBER 31, 1995 OCTOBER 31, 1994
---------------- -----------------
<S> <C> <C>
INCREASE (DECREASE) IN NET ASSETS:
OPERATIONS:
Net investment income...................................... $ 1,746,883 $ 954,917
Net realized (loss) gain on investments and foreign
currency related transactions............................ (35,295,462) 3,698,152
Net change in unrealized appreciation (depreciation) in
value of investments, foreign currency holdings and other
assets and liabilities denominated in foreign
currencies............................................... 1,078,455 (5,989,117)
---------------- -----------------
Net decrease in net assets resulting from
operations.......................................... (32,470,124) (1,336,048)
---------------- -----------------
DISTRIBUTIONS TO SHAREHOLDERS FROM:
Net investment income ($.06 and $.02 per share,
respectively)....................................... (1,169,355) (307,720)
Net realized gains ($.17 per share)................... (3,487,548) --
---------------- -----------------
Net decrease in net assets resulting from
distributions
to shareholders..................................... (4,656,903) (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.......................... (21,715) (1,066,735)
---------------- -----------------
Net (decrease) increase in net assets resulting from
capital share transactions.......................... (21,715) 286,453,739
---------------- -----------------
Total (decrease) increase in net assets.......... (37,148,742) 284,809,971
NET ASSETS:
Beginning of period........................................ 284,909,990 100,019
---------------- -----------------
End of period (including undistributed net investment
income of $1,204,542 and $889,328, respectively)......... $247,761,248 $ 284,909,990
============= ===============
</TABLE>

See accompanying notes to financial statements.

19
<PAGE> 21

FINANCIAL HIGHLIGHTS THE ASIA TIGERS FUND, INC.
FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD

<TABLE>
<CAPTION>
FOR THE PERIOD
NOVEMBER 29, 1993
(COMMENCEMENT OF
FOR THE OPERATIONS)
YEAR ENDED THROUGH OCTOBER
OCTOBER 31, 1995 31, 1994
---------------- -----------------
<S> <C> <C>
Per Share Operating Performance:
Net asset value, beginning of period.................. $ 13.89 $ 13.97(1)
---------------- -----------------
Net investment income................................. 0.09 0.05
Net realized and unrealized loss on investments,
foreign currency holdings, and other assets and
liabilities denominated in foreign currencies....... (1.67) (0.11)
---------------- -----------------
Net decrease from investment operations............... (1.58) (0.06)
---------------- -----------------
Less distributions:
Dividends from net investment income................ (0.06) (0.02)
Distributions from net realized gains............... (0.17) --
---------------- -----------------
Total dividends and distributions..................... (0.23) (0.02)
---------------- -----------------
Net asset value, end of period........................ $ 12.08 $ 13.89
============= ===============
Per share market value, end of period...................... $ 10.38 $ 12.38
TOTAL INVESTMENT RETURN BASED ON MARKET VALUE(2)........... (14.17)% (11.65)%
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (in 000's).................. $247,761 $ 284,910
Ratios of expenses to average net assets................. 1.65% 1.60%(3)
Ratios of net investment income to average net assets.... 0.71% 0.38%(3)
Portfolio turnover.................................... 77.88% 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, except that for the period
ended October 31, 1994, total investment return is based on a beginning of
period price of $14.02 (initial offering price of $15.00 less sales load of
$0.98). 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.

20
<PAGE> 22

NOTES TO FINANCIAL STATEMENTS THE ASIA TIGERS FUND, INC.
OCTOBER 31, 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 October 31, 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.

At October 31, 1995, the Fund had a net capital loss carryover of
$34,650,186, which is available to offset future net realized gains on
securities transactions to the extent provided for in the Internal Revenue Code.
Such capital loss carryover will expire in the year 2003.

Dividend and interest income from non-U.S. sources received by the Fund are
generally subject to non-U.S. withholding taxes. Such withholding taxes may be
reduced or eliminated under the terms of applicable U.S. income tax treaties.

21
<PAGE> 23

NOTES TO FINANCIAL STATEMENTS -- (CONTINUED) THE ASIA TIGERS FUND, INC.
OCTOBER 31, 1995

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

(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 realized capital
gains in excess of net realized capital losses (including any capital loss
carryovers). An additional distribution may be made to the extent necessary to
avoid payment of a 4% federal excise tax.

During the year ended October 31, 1995, the Fund reclassified $262,314 from
accumulated net realized loss on investments and foreign currency related
transactions to undistributed net investment income as a result of permanent
book and tax differences primarily relating to foreign currency losses. Net
investment income and net assets were not affected by the change.

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.

Distributions to shareholders are recorded on the ex-dividend date. 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

22
<PAGE> 24

NOTES TO FINANCIAL STATEMENTS -- (CONTINUED) THE ASIA TIGERS FUND, INC.
OCTOBER 31, 1995

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.

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 year ended October 31, 1995, fees paid to the Investment Manager,
amounted to $2,453,731, of which the Investment Manager informed the Fund it
paid $1,226,845 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 0.20% of
the value of the Fund's average weekly net assets. For the year ended October
31, 1995, these fees amounted to $490,746.

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 $174,726,242 and $196,377,542, respectively, for the year ended
October 31, 1995.

23
<PAGE> 25

NOTES TO FINANCIAL STATEMENTS -- (CONTINUED) THE ASIA TIGERS FUND, INC.
OCTOBER 31, 1995

NOTE D: QUARTERLY RESULTS OF OPERATIONS (UNAUDITED):

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 $ 0.03 $ 17,322 $ 0.85 $ 18,005 $ 0.88
July 31, 1995...................... $ 1,860 $ 0.09 $ 887 $ 0.05 $ 25,294 $ 1.23 $ 26,181 $ 1.28
October 31, 1995................... $ 1,542 $ 0.08 $ 359 $ 0.02 $ (11,385) $ (0.56) $ (11,026) $ (0.54)
</TABLE>

- ---------------

* From commencement of operations on November 29, 1993.

NOTE E: OTHER

At October 31, 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.

Additionally, the Fund owned securities of Indian companies valued at
approximately $1,688,000 which were in the process of being registered in the
name of the Fund. Significant delays are common in registering the transfer of
securities in India, and such transfers can take a year or longer. Indian
securities regulations normally preclude the Fund from selling such securities
until the completion of the registration process.

24
<PAGE> 26

REPORT OF INDEPENDENT ACCOUNTANTS

To the Board of Directors
and Shareholders of
The Asia Tigers Fund, Inc.

In our opinion, the accompanying statement of assets and liabilities, including
the schedule of investments, and the related statements of operations and of
changes in net assets and the financial highlights present fairly, in all
material respects, the financial position of The Asia Tigers Fund, Inc. (the
"Fund") at October 31, 1995, the results of its operations for the year then
ended, and the changes in its net assets and the financial highlights for the
year then ended and for the period November 29, 1993 (commencement of
operations) through October 31, 1994, in conformity with generally accepted
accounting principles. These financial statements and financial highlights
(hereafter referred to as "financial statements") are the responsibility of the
Fund's management; our responsibility is to express an opinion on these
financial statements based on our audits. We conducted our audits of these
financial statements in accordance with generally accepted auditing standards
which require that we plan and perform the audit to obtain reasonable assurance
about whether the financial statements are free of material misstatement. An
audit includes examining, on a test basis, evidence supporting the amounts and
disclosures in the financial statements, assessing the accounting principles
used and significant estimates made by management, and evaluating the overall
financial statement presentation. We believe that our audits, which included
confirmation of securities at October 31, 1995 by correspondence with the
custodian and brokers and the application of alternative auditing procedures
where confirmations from brokers were not received, provide a reasonable basis
for the opinion expressed above.

PRICE WATERHOUSE LLP
1177 Avenue of the Americas
New York, New York
December 11, 1995

25
<PAGE> 27

DIVIDENDS AND DISTRIBUTIONS; DIVIDEND REINVESTMENT
AND CASH PURCHASE PLAN

The Fund intends to distribute annually to shareholders substantially all
of its net investment income, and to distribute any net realized capital gains
at least annually. Net investment income for this purpose is income other than
net realized long and short-term capital gains net of expenses.

Pursuant to the Dividend Reinvestment and Cash Purchase Plan (the "Plan"),
shareholders whose shares of Common Stock are registered in their own names will
be deemed to have elected to have all distributions automatically reinvested by
PNC Bank, National Association (the "Plan Agent") in Fund shares pursuant to the
Plan, unless such shareholders elect to receive distributions in cash.
Shareholders who elect to receive distributions in cash will receive all
distributions in cash paid by check in dollars mailed directly to the
shareholder by PNC Bank, National Association, as dividend paying agent. In the
case of shareholders, such as banks, brokers or nominees, that hold shares for
others who are beneficial owners, the Plan Agent will administer the Plan on the
basis of the number of shares certified from time to time by the shareholders as
representing the total amount registered in such shareholders' names and held
for the account of beneficial owners that have not elected to receive
distributions in cash. Investors that own shares registered in the name of a
bank, broker or other nominee should consult with such nominee as to
participation in the Plan through such nominee, and may be required to have
their shares registered in their own names in order to participate in the Plan.

The Plan Agent serves as agent for the shareholders in administering the
Plan. If the directors of the Fund declare an income dividend or a capital gains
distribution payable either in the Fund's Common Stock or in cash,
nonparticipants in the Plan will receive cash and participants in the Plan will
receive Common Stock, to be issued by the Fund or purchased by the Plan Agent in
the open market, as provided below. If the market price per share on the
valuation date equals or exceeds net asset value per share on that date, the
Fund will issue new shares to participants at net asset value; provided,
however, if the net asset value is less than 95% of the market price on the
valuation date, then such shares will be issued at 95% of the market price. The
valuation date will be the dividend or distribution payment date or, if that
date is not a New York Stock Exchange trading day, the next preceding trading
day. If net asset value exceeds the market price of Fund shares at such time, or
if the Fund should declare an income dividend or capital gains distribution
payable only in cash, the Plan Agent will, as agent for the participants, buy
Fund shares in the open market, on the New York Stock Exchange or elsewhere, for
the participants' accounts on, or shortly after, the payment date. If, before
the Plan Agent has completed its purchases, the market price exceeds the net
asset value of a Fund share, the average per share purchase price paid by the
Plan Agent may exceed the net asset value of the Fund's shares, resulting in the
acquisition of fewer shares than if the distribution had been paid in shares
issued by the Fund on the dividend payment date. Because of the foregoing
difficulty with respect to open-market purchases, the Plan provides that if the
Plan Agent is unable to invest the full dividend amount in open-market purchases
during the purchase period or if the market discount shifts to a market premium
during the purchase period, the Plan Agent will cease making open-market
purchases and will receive the uninvested portion of the dividend amount in
newly issued shares at the close of business on the last purchase date.

26
<PAGE> 28

Participants have the option of making additional cash payments to the Plan
Agent, annually, in any amount from $100 to $3,000, for investment in the Fund's
Common Stock. The Plan Agent will use all such funds received from participants
to purchase Fund shares in the open market on or about February 15. Any
voluntary cash payment received more than 30 days prior to this date will be
returned by the Plan Agent, and interest will not be paid on any uninvested cash
payment. To avoid unnecessary cash accumulations, and also to allow ample time
for receipt and processing by the Plan Agent, it is suggested that participants
send in voluntary cash payments to be received by the Plan Agent approximately
ten days before an applicable purchase date specified above. A participant may
withdraw a voluntary cash payment by written notice, if the notice is received
by the Plan Agent not less than 48 hours before such payment is to be invested.

The Plan Agent maintains all shareholder accounts in the Plan and furnishes
written confirmations of all transactions in an account, including information
needed by shareholders for personal and tax records. Shares in the account of
each Plan participant will be held by the Plan Agent in the name of the
participant, and each shareholder's proxy will include those shares purchased
pursuant to the Plan.

There is no charge to participants for reinvesting dividends or capital
gains distributions or voluntary cash payments. The Plan Agent's fees for the
reinvestment of dividends and capital gains distributions and voluntary cash
payments will be paid by the Fund. There will be no brokerage charges with
respect to shares issued directly by the Fund as a result of dividends or
capital gains distributions payable either in stock or in cash. However, each
participant will pay a pro rata share of brokerage commissions incurred with
respect to the Plan Agent's open market purchases in connection with the
reinvestment of dividends and capital gains distributions and voluntary cash
payments made by the participant. Brokerage charges for purchasing small amounts
of stock for individual accounts through the Plan are expected to be less than
the usual brokerage charges for such transactions, because the Plan Agent will
be purchasing stock for all participants in blocks and prorating the lower
commission thus attainable.

The receipt of dividends and distributions under the Plan will not relieve
participants of any income tax which may be payable on such dividends or
distributions. See "Taxation -- Shareholders."

Experience under the Plan may indicate that changes in the Plan are
desirable. Accordingly, the Fund and the Plan Agent reserve the right to
terminate the Plan as applied to any voluntary cash payments made and any
dividend or distribution paid subsequent to notice of the termination sent to
members of the Plan at least 30 days before the record date for such dividend or
distribution. The Plan also may be amended by the Fund or the Plan Agent, but
(except when necessary or appropriate to comply with applicable law, rules or
policies of a regulatory authority) only by at least 30 days' written notice to
participants in the Plan. All correspondence concerning the Plan should be
directed to the Plan Agent at 400 Bellevue Parkway, Wilmington, Delaware 19809.

27
<PAGE> 29

FEDERAL TAXATION NOTICE

The Fund paid foreign taxes of $376,399 during the fiscal period ended October
31, 1995 which it intends to pass through pursuant to Section 853 of the
Internal Revenue Code to its shareholders. During the same period the Fund
distributed $4,385,105 of foreign source income.

RESULTS OF ANNUAL SHAREHOLDERS MEETING

The Fund held its initial annual shareholders meeting on February 23, 1995. At
the meeting, shareholders elected each of the nominees proposed for election to
the Fund's Board of Directors and ratified the selection of Price Waterhouse LLP
as the independent accountants of the Fund for the year ending October 31, 1995.
The following table provides information concerning the matters voted on at the
meeting:

I. ELECTION OF DIRECTORS

<TABLE>
<CAPTION>
NOMINEES VOTES FOR VOTES ABSTAINED
-------------------------------------------------------- ----------- ---------------
<S> <C> <C>
Leslie H. Gelb.......................................... 16,301,359 310,281
Jeswald W. Salacuse..................................... 16,340,782 270,858
Charles F. Barber....................................... 16,318,250 293,390
Alan H. Rappaport....................................... 16,362,587 249,053
Philip Stafford......................................... 16,365,632 246,008
</TABLE>

II. RATIFICATION OF PRICE WATERHOUSE LLP AS THE INDEPENDENT ACCOUNTANTS OF THE
FUND

<TABLE>
<CAPTION>
VOTES FOR VOTES AGAINST VOTES ABSTAINED
------------------------ ------------------------ ------------------------
<S> <C> <C>
16,368,087 98,588 144,965
</TABLE>