THE ASIA TIGERS FUND, INC.
June 3, 1996
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 six months of the fiscal year,
ending April 30, 1996. I hope you will find the Investment Adviser's report
insightful; beginning on the next page, it overviews the region's performance
and features a top holding in each of the 13 countries the Fund covers.
Since its inception, the Fund has provided its shareholders broad exposure to
the emerging equity markets of the Asian Pacific basin and the Indian
subcontinent. While these markets have been volatile, as can be expected in
emerging economies, active portfolio management has kept the Fund's NAV
comparatively stable.
Along with risk generally goes reward, and that has proved true in the six
months ended April 30, 1996. In U.S. dollar terms, three markets in the region
performed remarkably well: Taiwan (up over 32%), Malaysia and Indonesia (both up
over 20%). The weakest market, Bangladesh, was down 7%. As of April 30, the Fund
was 25% invested in the top three markets, with just 0.31% in Bangladesh. As a
result, on an NAV basis, the Fund returned 13.5% over the six-month period.
Going forward, the Fund's Investment Adviser believes the region's strong
economic fundamentals will continue to nurture high growth rates and therefore
positive market performance through the end of 1996. Many countries in the
region continue to relax their restrictions on foreign investment, which, in
conjunction with increasing investor interest in emerging markets, may have a
stabilizing effect and enhance market liquidity in the long run.
If you have questions about or would like updates on the Fund, please call our
toll-free number at (800) 421-4777. Thank you for your participation in the
Fund.
Sincerely,
/s/ Alan Rappaport
Alan Rappaport
Chairman
<PAGE>
REPORT OF THE INVESTMENT ADVISER
PERFORMANCE
The six-month period ended April 30, 1996, was a rewarding one for investors in
Asian equities. Strong economic growth, low inflation and generally declining
interest rates in the region provided a supportive environment for these stock
markets. Nine of the thirteen markets in which The Asia Tigers Fund invests rose
in U.S. dollar terms. Three markets in particular, Malaysia, Taiwan and
Indonesia, increased more than 20%. Taiwan's stock market led the region by
rising more than 32%. Bangladesh, Sri Lanka, South Korea and China B shares were
the only markets to experience index declines during the period. Bangladesh was
the worst performing market, falling more than 7%.
On a total return basis, the Fund's net asset value rose 13.5% during the
period. In December 1995, the Fund announced a cash dividend of $0.081 per share
payable on January 12, 1996. The Fund's net asset value on April 30, 1996,
closed at $13.62.
COUNTRY ALLOCATIONS
During the six-month period, the Fund adjusted its geographic allocation with
respect to several countries, in response to changing underlying economic
conditions and relative equity valuations. Since the end of October 1995, the
more significant changes in the Fund's country allocations include an increase
in Thailand and Indonesia, and a decrease in Hong Kong and Malaysia. The charts
below indicate the changes in the Fund's country allocations in the six months
since the Fund's most recent fiscal year-end.
GEOGRAPHICAL ALLOCATION OCTOBER 31, 1995
[THE FOLLOWING TABLE WAS REPRESENTED BY A PIE CHART IN THE PRINTED MATERIAL.]
USA (Cash) ............................................. 6.77%
Hong Kong .............................................. 26.88%
Malaysia ............................................... 16.15%
Thailand ............................................... 12.66%
Singapore .............................................. 11.73%
Indonesia .............................................. 6.10%
India .................................................. 6.20%
Korea .................................................. 6.62%
Taiwan ................................................. 2.24%
Philippines ............................................ 2.53%
Pakistan ............................................... 0.84%
China .................................................. 0.35%
Bangladesh ............................................. 0.51%
Sri Lanka .............................................. 0.42%
GEOGRAPHICAL ALLOCATION APRIL 30, 1996
[THE FOLLOWING TABLE WAS REPRESENTED BY A PIE CHART IN THE PRINTED MATERIAL.]
USA (Cash) ............................................. 8.92%
Hong Kong .............................................. 24.98%
Malaysia ............................................... 15.17%
Thailand ............................................... 13.82%
Singapore .............................................. 11.96%
Indonesia .............................................. 7.30%
India .................................................. 6.01%
Korea .................................................. 5.86%
Taiwan ................................................. 2.81%
Philippines ............................................ 1.59%
Pakistan ............................................... 0.69%
China .................................................. 0.42%
Bangladesh ............................................. 0.31%
Sri Lanka .............................................. 0.17%
The changes in allocation are discussed below.
- - --------------------------------------------------------------------------------
FUND UPDATES
The Fund's toll-free phone number, (800) 421-4777, provides callers with a
recorded monthly update of the markets in which the Fund invests. It also offers
details about the Fund, its portfolio and performance. The Fund's net asset
value (NAV) is calculated weekly and published in The Wall Street Journal every
Monday under the heading "Closed End Funds." The Fund's net asset value is also
published in Barron's on Saturdays and in The New York Times on Mondays. The
Fund is listed on the New York Stock Exchange under the ticker symbol GRR.
- - --------------------------------------------------------------------------------
2
<PAGE>
REGIONAL OUTLOOK
The economies of Asia generally remain on a strong growth path with the average
Gross Domestic Product (GDP) growth estimated to exceed 7% in 1996 and 1997. The
Investment Adviser believes the largest and most important economy in the region
is China, and that after two years of slowing growth and slowing inflation, the
Chinese government is once again in a position to promote economic growth, which
the Investment Adviser believes will spur growth in other Asian economies. The
declining interest rate environment that began with the U.S. Federal Reserve's
interest rate cut in July of 1995 has begun to show signs that the friendly
environment for U.S. equities may be nearing its end. While the Investment
Adviser does not believe that Asian equities are currently undervalued, the
Investment Adviser believes the region remains arguably the best in the world
for long-term growth of equity capital, given that equity valuations are
reasonable and economic growth has been strong.
The following comments are intended 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 that make up the Fund's portfolio.
- - --------------------------------------------------------------------------------
HONG KONG
US$69.4 MILLION, 25.0% OF THE FUND'S INVESTMENT PORTFOLIO, WAS INVESTED IN HONG
KONG AS OF APRIL 30, 1996.
Hong Kong's economy has progressed further in the current economic cycle than
most of its neighboring countries. While in the Investment Adviser's view many
companies in the region will experience slowing earnings growth in 1996, Hong
Kong's earnings growth is estimated to equal 1995's rate of 11%. Recent land
acquisitions by property developers such as Cheung Kong and Citic Pacific
signify a willingness to build land banks at current prices. Optimism will
likely return to Hong Kong's property market under the lower interest rates and
looser credit policy likely in China in 1996. There are signs of improving
Sino-British relations, such as the PRC Foreign Minister's recent visit to
London. The Fund's Hong Kong exposure has been gradually moving to a more
bullish stance as a result of the better economic background. The Fund is
slightly overweighted in property development companies, conglomerates and
banking, and is underweighted in utilities.
SUN HUNG KAI PROPERTIES (SHK Properties) is the Fund's largest holding in Hong
Kong, as well as the largest holding as a percentage of total net assets. SHK
Properties is Hong Kong's dominant property development company. In addition to
property development and investment, the company is involved in hotel ownership,
finance, insurance, property and parking management, cinema and warehouse
operations, garment manufacturing, public transportation and telecommunications.
- - --------------------------------------------------------------------------------
MALAYSIA
US$42.1 MILLION, 15.2% OF THE FUND'S INVESTMENT PORTFOLIO, WAS INVESTED IN
MALAYSIA AS OF APRIL 30, 1996.
The Investment Adviser believes the Malaysian market is reasonably valued,
currently trading at 21.5 times 1996 forecast earnings compared to its five-year
historical average of 25 times earnings. Earnings per share are expected to grow
at approximately 14% in 1996. In addition, corporate results reported for
calendar year 1995 tended to exceed expectations. Interest rates are
3
<PAGE>
expected to move higher, although the rise may be delayed by political struggles
between Prime Minister Mahathir and rivals. Although Malaysia's current account
deficit is approximately 9% of GDP, the Investment Adviser believes there is
evidence that the gap is beginning to narrow.
The Fund is overweighted in banking, gaming and consumer stocks, and is
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.
- - --------------------------------------------------------------------------------
THAILAND
US$38.4 MILLION, 13.8% OF THE FUND'S INVESTMENT PORTFOLIO, WAS INVESTED IN
THAILAND AS OF APRIL 30, 1996.
The Investment Adviser believes that the Thai economy remains robust, and
corporate earnings are expected to grow approximately 21% in 1996. There are
signs that the economy is slowing in response to monetary tightening by the Bank
of Thailand. The rising current account deficit is the Bank's primary concern.
The Fund is overweighted in banking, finance, energy and communication stocks,
and is underweighted in the building materials and property sectors. In
Thailand, the Fund's largest holding 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.
- - --------------------------------------------------------------------------------
SINGAPORE
US$33.2 MILLION, 12.0% OF THE FUND'S INVESTMENT PORTFOLIO, WAS INVESTED IN
SINGAPORE AS OF APRIL 30, 1996.
The Singapore government continues to do an exceptional job of managing the
country's economy. Singapore has been ranked by Fortune magazine as the best
city for business in the world. The Fund has focused on banking and property
stocks, and has remained skeptical about the possibility of an often-predicted
ship repair industry recovery.
The Fund's largest position in Singapore is OCBC BANK. OCBC has 57 branches in
Singapore, 25 in Malaysia and an additional 20 branches around the world. The
company owns one of the largest land banks in Singapore, and its stock therefore
commands a premium multiple to its banking peer group.
- - --------------------------------------------------------------------------------
INDONESIA
US$20.3 MILLION, 7.3% OF THE FUND'S INVESTMENT PORTFOLIO, WAS INVESTED IN
INDONESIA AS OF APRIL 30, 1996.
The Investment Adviser believes Indonesia 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 offers attractive incentives
for Foreign Direct Investment (FDI). The domestic telephone operator, PT
Telekom, listed its shares on the New York Stock Exchange in November of 1995
and may sponsor an additional offering in the second half of 1996.
4
<PAGE>
The Fund is overweighted in consumer and banking stocks and underweighted in
property stocks. BANK INTERNATIONAL INDONESIA is the Fund's largest Indonesian
holding. The Bank is one of Indonesia's larger private banks.
- - --------------------------------------------------------------------------------
INDIA
US$16.7 MILLION, 6.0% OF THE FUND'S INVESTMENT PORTFOLIO, WAS INVESTED IN INDIA
AS OF APRIL 30, 1996.
The long-anticipated elections in India were held in May with no party winning a
clear mandate. It remains to be seen whether the recently formed coalition
government will be successful in formulating and implementing policies and
programs in light of the disparate views represented. So far the government has
indicated its support for the economic liberalization programs of the last few
years. In the immediate aftermath of the elections, investors appear to be
focused on the longer-term fundamentals of the economy and continued high
earnings growth, and new foreign investment has continued.
Indian equities were trading at approximately 22 times earnings as of April 30,
1996, while 1996 earnings are expected to grow 20%. After a long period of
stability, the Indian rupee was devalued about 11% (from 31.5 to 35) in late
1995. The new rupee level has improved the competitiveness of Indian exports,
which should contribute to the expected GDP growth of 6% for 1996.
The Fund's largest position in India is in HINDUSTAN LEVER. The company is the
largest consumer products company in India and is the market leader in all of
its product categories. The company recently merged with Brook Bond and the
combined company maintains strong franchises in both food and consumer products.
- - --------------------------------------------------------------------------------
KOREA
US$16.3 MILLION, 5.9% OF THE FUND'S INVESTMENT PORTFOLIO, WAS INVESTED IN KOREA
AS OF APRIL 30, 1996.
Prior to 1992, foreigners were not allowed to directly invest in Korea. The
ongoing process of opening the country's capital markets continues, with foreign
ownership limits rising to 18% as of April 1996. Before the end of 1996, the
limit is expected to be raised again to at least 20%. Korea's investment profile
in Asia continues to grow. Domestic interest rates have fallen dramatically from
15.5% in May 1995 to nearly 10% by May 1996. The impact of this decline in
interest rates should be especially strong given the general high level of
borrowing by Korean companies. In addition to a significant investment in the
world's largest producer of computer memory chips, the Fund's larger holdings
are in large capitalization companies that stand to benefit from strong domestic
demand, such as Korea Electric Power and Shinhan Bank. The Fund is underweighted
in textile and securities companies.
SAMSUNG ELECTRONICS is the world's largest producer of computer memory chips.
The company's profits have increased from US$200 million in 1993 to over US$3
billion in 1995. In addition to computer memory chips, Samsung produces a wide
range of consumer and industrial electronic equipment including computers,
telecommunications equipment and color television sets. Samsung is one of the
least expensive (in price-earnings ratio terms) stocks in Asia. Based on 1996
estimated earnings per share, the company's stock has been trading at less than
six times earnings.
- - --------------------------------------------------------------------------------
5
<PAGE>
- - --------------------------------------------------------------------------------
TAIWAN
US$7.8 MILLION, 2.8% OF THE FUND'S INVESTMENT PORTFOLIO, WAS INVESTED IN TAIWAN
AS OF APRIL 30, 1996.
Taiwan has had a challenging year with a domestic financial scandal, political
uncertainty, missile tests, capital flight and a depreciating currency.
Foreigners remain convinced, however, that the inexpensive valuations are
compelling. During the third quarter of 1995, foreigners invested US$1.8 billion
in Taiwanese stocks. Taiwan's central bank has lowered its reserve ratio and the
Investment Adviser believes this should help liquidity. Inflation remains under
control and below the government's target of 4% for the full year.
The Fund's largest holding in Taiwan is UNITED MICRO ELECTRONICS, a leader in
Taiwan's electronics industry. The Investment Adviser believes the company
should be well positioned to capitalize on the computer industry's high volume
growth. The company has a competitive advantage in its flexible product line,
advanced computer design capability and world class production facilities. The
Investment Adviser believes that future earnings growth will be fueled by a
shift to higher density production technology and capacity expansion.
- - --------------------------------------------------------------------------------
PHILIPPINES
US$4.4 MILLION, 1.6% OF THE FUND'S INVESTMENT PORTFOLIO, WAS INVESTED IN THE
PHILIPPINES AS OF APRIL 30, 1996.
Poor weather has caused inflation to increase in the Philippines, which has hurt
the equity market's performance in recent months. The market is trading at a
discount to its historic average. In the longer term, the Investment Adviser
favors sectors such as banking, property and consumer products.
The Fund's top holding in the Philippines is METROPOLITAN BANK & TRUST.
"Metrobank" is now the Philippines' largest private bank in terms of assets,
loans and capital. The bank has strong ties to the local Chinese community and
is the first Philippine bank to set up an office in Taipei.
- - --------------------------------------------------------------------------------
PAKISTAN
US$1.9 MILLION, 0.7% OF THE FUND'S INVESTMENT PORTFOLIO, WAS INVESTED IN
PAKISTAN AS OF APRIL 30, 1996.
In Pakistan, fundamental valuations remain attractive, with GDP growth of 5% and
corporate earnings expected to exceed 15% in 1996. While the country's trade
balance remains a concern, the International Monetary Fund is working with
Pakistan to control its deficit. Pakistan must maintain nine weeks of foreign
currency reserves, and the government will continue with its on-going
privatization plans. The Pakistan Rupee was devalued about 7% in late October,
and has further devalued by less than 2% in the first four months of 1996.
The Fund's largest holding in Pakistan is PAKISTAN STATE OIL, the country's
largest oil marketing company, which controls approximately 80% 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 a 1,292
MW power station.
6
<PAGE>
- - --------------------------------------------------------------------------------
CHINA
US$1.2 MILLION, 0.4% OF THE FUND'S INVESTMENT PORTFOLIO, WAS INVESTED IN CHINA
AS OF APRIL 30, 1996.
The Chinese economy continues to slow gradually from its fast pace of 1993 and
1994, and is expected to achieve a soft landing in 1996. In April 1996, the
government removed interest rate subsidies and signaled that it will implement a
more flexible monetary policy. Signs of increasing economic growth are evident
in recent data, with industrial production rising 13.7% for the 12-month period
ending April 1996.
Most of the Fund's China exposure is in Hong Kong- or Taiwan-based firms that
are significantly active in China. The Fund holds one issue that trades on the
Shanghai exchange ("China B share") and two issues that trade on the Hong Kong
Stock Exchange ("China H share"). The Fund's top holding in this category is a
Chinese company listed on the Hong Kong Stock Exchange, COSCO PACIFIC. COSCO
Pacific leases shipping containers to its parent company, COSCO, the world's
largest shipping company. In addition, COSCO Pacific owns a 50% stake in Hong
Kong's Container Terminal 8.
- - --------------------------------------------------------------------------------
BANGLADESH
US$0.9 MILLION, 0.3% OF THE FUND'S INVESTMENT PORTFOLIO, WAS INVESTED IN
BANGLADESH AS OF APRIL 30, 1996.
Bangladesh remains one of the world's poorest countries; however, the Investment
Adviser believes the country's prospects for economic growth are beginning to
appear. Over the next twelve months, the Investment Adviser expects the
Bangladesh economy to grow in excess of 4%, corporate earnings to grow 10% and
inflation to remain below 8%. The Fund's Bangladesh exposure is focused on
select, high quality companies listed on the Dhaka Stock Exchange.
BEXIMCO PHARMACEUTICALS is the fourth largest company on the Dhaka Stock
Exchange, with a capitalization of US$47 million. Beximco Pharmaceuticals
dominates the local pharmaceutical market with sales of US$60 million and a 14%
market share. The company distributes antibiotics, anti-ulcers, anti-rheumatics,
anti-allergenics, antidepressants and vitamins. At its April 30, 1996, price of
86 Taka, the stock was trading at 5.6 times 1996 estimated earnings per share.
- - --------------------------------------------------------------------------------
SRI LANKA
US$0.5 MILLION, 0.2% OF THE FUND'S INVESTMENT PORTFOLIO, WAS INVESTED IN SRI
LANKA AS OF APRIL 30, 1996.
Sri Lanka continues to be affected by civil war in the north of the country. The
fighting has escalated to new levels and has imposed a cost, both in terms of
life and economic potential. Investors were disappointed in 1995, with lower
than expected economic growth and higher than expected inflation. For 1996, the
economy is expected to grow 4.5%, with the inflation rate estimated to be 13%.
The Sri Lankan Rupee decreased 2% in value in the first five months of 1996.
The Fund maintains modest exposure to Sri Lanka. The Investment Adviser believes
that good growth possibilities exist as the country adopts market-oriented
policies. At present,
7
<PAGE>
DEVELOPMENT FINANCE CORPORATION of Ceylon is the Fund's only Sri Lankan holding.
The company is able to access low-cost funding and offers attractive financing
for companies in need of capital. The company has a dominant market share and
has a market capitalization of US$170.3 million as of April 30, 1996.
- - --------------------------------------------------------------------------------
BZW INVESTMENT MANAGEMENT
London
Hong Kong
June 3, 1996
8
<PAGE>
<TABLE>
SCHEDULE OF INVESTMENTS THE ASIA TIGERS FUND, INC.
APRIL 30, 1996 (UNAUDITED)
<CAPTION>
NUMBER PERCENT
OF SHARES SECURITY OF HOLDINGS COST VALUE
- - ------------------------------------------------------------------------------------------------------------------------------------
<C> <S> <C> <C> <C>
COMMON STOCKS 85.75%
- - ------------------------------------------------------------------------------------------------------------------------------------
BANGLADESH 0.31%
BEVERAGE & TOBACCO 0.02%
19,968 Bangladesh Tobacco ...................................... $ 93,851 $ 67,590
HEALTH/PERSONAL CARE 0.19%
250,000 Beximco Pharmaceuticals ................................. 726,264 522,485
TEXTILES & APPAREL 0.10%
33,750 Padma Textile Mills ..................................... 304,177 265,202
-------------- --------------
TOTAL BANGLADESH ........................................ 1,124,292 855,277
CHINA 0.42%
TEXTILES & APPAREL 0.08%
874,000 Sanmao Textile Co. B .................................... 416,539 209,760
TRANSPORTATION - SHIPPING 0.22%
880,000 Cosco Pacific - Ltd. .................................... 504,200 620,039
WHOLESALE & INTERNATIONAL TRADE 0.12%
686,000 NG Fung Hong Limited .................................... 363,826 328,145
-------------- --------------
TOTAL CHINA ............................................. 1,284,565 1,157,944
HONG KONG 22.91%
BANKING 6.70%
496,967 Bank of East Asia ....................................... 1,473,474 1,670,477
780,000 Hang Seng Bank .......................................... 7,525,965 7,915,966
490,478 HSBC Holdings PLC ....................................... 6,282,327 7,323,880
6,500,000 HSBC Warrants (Expiration date 6/27/97)* ................ 2,138,232 1,722,689
-------------- --------------
17,419,998 18,633,012
MULTI-INDUSTRY 6.43%
620,000 Citic Pacific ........................................... 1,641,709 2,436,716
940,000 Hutchinson Whampoa ...................................... 4,622,596 5,833,226
5,000,000 Hutchinson Whampoa Warrants (Expiration date 9/26/97)* .. 933,877 756,303
310,000 Jardine Matheson ........................................ 2,417,229 2,480,000
740,000 Swire Pacific A ......................................... 5,685,207 6,314,156
345,000 Swire Pacific A Warrants (Expiration date 6/27/97)* ..... 76,950 52,631
-------------- --------------
15,377,568 17,873,032
</TABLE>
9
<PAGE>
<TABLE>
SCHEDULE OF INVESTMENTS - (CONTINUED) THE ASIA TIGERS FUND, INC.
APRIL 30, 1996 (UNAUDITED)
<CAPTION>
NUMBER PERCENT
OF SHARES SECURITY OF HOLDINGS COST VALUE
- - ------------------------------------------------------------------------------------------------------------------------------------
COMMON STOCKS: HONG KONG (continued)
<C> <S> <C> <C> <C>
REAL ESTATE 6.73%
880,000 Cheung Kong Holdings .................................... $ 5,107,801 $ 6,285,714
3,820,000 Cheung Kong Warrants (Expiration date 2/10/97)* ......... 1,391,458 1,382,805
784,766 Hong Kong Land Holdings ................................. 1,952,922 1,679,399
900,000 Sun Hung Kai Properties ................................. 7,454,278 8,581,125
2,220,000 Sun Hung Kai Properties Warrants (Expiration date 3/27/97)* 633,667 760,569
-------------- --------------
16,540,126 18,689,612
TELECOMMUNICATIONS 2.04%
2,800,000 Hong Kong Telecom ....................................... 5,540,681 5,339,367
10,000,000 Hong Kong Telecom Warrants (Expiration date 7/30/97)* ... 373,424 329,670
-------------- --------------
5,914,105 5,669,037
UTILITIES ELECTRIC & GAS 1.01%
330,000 China Light & Power ..................................... 1,751,636 1,557,207
750,000 Consolidated Electric Power ............................. 1,279,536 1,241,112
3,031,172 2,798,319
-------------- --------------
TOTAL HONG KONG ......................................... 58,282,969 63,663,012
-------------- --------------
INDIA 5.84%
AUTOMOBILES 1.09%
60,000 Bajaj Auto Ltd. ......................................... 1,405,826 1,512,139
250,000 Patheja Forgings ........................................ 613,690 599,711
65,000 Tata Engineering ........................................ 948,467 920,520
-------------- --------------
2,967,983 3,032,370
BUILDING MATERIALS & COMPONENTS 0.70%
93,000 Gujarat Ambuja Cement ................................... 794,370 948,815
84,000 Gujarat Ambuja Cement GDR ............................... 904,375 987,000
-------------- --------------
1,698,745 1,935,815
BUSINESS/PUBLIC SERVICE 0.45%
170,000 NIIT Ltd. ............................................... 860,441 1,265,173
CHEMICALS 0.47%
20,000 Grasim Industries GDS ................................... 516,250 387,500
55,000 Reliance Industries GDR ................................. 790,000 914,375
-------------- --------------
1,306,250 1,301,875
ELECTRICALS & ELECTRONICS 0.49%
195,000 Crompton Greaves ........................................ 1,351,169 1,352,601
</TABLE>
10
<PAGE>
<TABLE>
SCHEDULE OF INVESTMENTS - (CONTINUED) THE ASIA TIGERS FUND, INC.
APRIL 30, 1996 (UNAUDITED)
<CAPTION>
NUMBER PERCENT
OF SHARES SECURITY OF HOLDINGS COST VALUE
- - ------------------------------------------------------------------------------------------------------------------------------------
COMMON STOCKS: INDIA (continued)
<C> <S> <C> <C> <C>
ENERGY SOURCES 0.62%
160,000 Hindustan Petroleum ..................................... $ 1,605,257 $ 1,710,983
HEALTH CARE 1.32%
100,000 Hindustan Lever ......................................... 2,043,029 2,297,688
72,000 Ranbaxy Labs ............................................ 1,514,594 1,373,410
-------------- --------------
3,557,623 3,671,098
METALS - NON FERROUS 0.28%
100,000 Indian Aluminium GDR .................................... 633,750 787,500
TEXTILES & APPAREL 0.42%
275,000 Arvind Mills GDR ........................................ 1,008,750 1,168,750
-------------- --------------
TOTAL INDIA ............................................. 14,989,968 16,226,165
-------------- --------------
INDONESIA 7.30%
AUTOMOBILES 0.16%
300,000 PT Astra International-Foreign .......................... 560,939 443,635
BANKING 1.02%
617,000 Panin Bank-Foreign ...................................... 728,109 628,108
450,000 PT Bank International Indonesia-Foreign ................. 1,693,588 2,213,352
-------------- --------------
2,421,697 2,841,460
BEVERAGE & TOBACCO 1.37%
294,000 Gudang Garam-Foreign .................................... 588,518 2,110,801
155,000 Hanjaya Mandal Sampoerna-Foreign ........................ 978,150 1,710,780
-------------- --------------
1,566,668 3,821,581
BUILDING MATERIALS & COMPONENTS 1.12%
340,000 Indocement Tunggal Prakarsa-Foreign ..................... 1,285,865 1,311,616
520,000 Semen Gresik-Foreign .................................... 1,034,167 1,799,829
-------------- --------------
2,320,032 3,111,445
FOOD & HOUSEHOLD PRODUCTS 0.35%
210,000 PT Indofoods-Foreign .................................... 985,245 965,388
FOREST PRODUCTS & PAPER 0.37%
829,534 Indah Kiat Paper-Foreign ................................ 694,277 862,246
344,883 Indah Kiat Paper Rights (Expiration date 5/14/96)* ...... 0 173,697
206,930 Indah Kiat Paper Warrants (Expiration date 4/13/01)* .... 0 0
-------------- --------------
694,277 1,035,943
</TABLE>
11
<PAGE>
<TABLE>
SCHEDULE OF INVESTMENTS - (CONTINUED) THE ASIA TIGERS FUND, INC.
APRIL 30, 1996 (UNAUDITED)
<CAPTION>
NUMBER PERCENT
OF SHARES SECURITY OF HOLDINGS COST VALUE
- - ------------------------------------------------------------------------------------------------------------------------------------
COMMON STOCKS: INDONESIA (continued)
<C> <S> <C> <C> <C>
INDUSTRIAL COMPONENT 0.18%
450,000 PT Sucaco-Foreign ....................................... $ 1,134,913 $ 511,144
MACHINERY & ENGINEERING 0.31%
440,000 United Tractors-Foreign ................................. 1,053,575 853,408
MULTI-INDUSTRY 0.69%
1,350,500 Bimantara Citra-Foreign* ................................ 1,029,209 1,924,737
RECREATION/CONSUMER GOODS 0.20%
110,000 Modern Photo Film-Foreign ............................... 690,523 542,220
TELECOMMUNICATIONS 1.39%
355,000 Indo Satellite Corp.-Foreign ............................ 1,419,587 1,232,533
550,000 PT Telekomunikasi ....................................... 848,014 913,523
50,000 Telekomunikasi ADR ...................................... 1,423,750 1,706,250
-------------- --------------
3,691,351 3,852,306
WHOLESALE/INTERNATIONAL TRADE 0.14%
130,000 Wickaksana Overseas International ....................... 381,679 376,822
-------------- --------------
TOTAL INDONESIA ......................................... 16,530,108 20,280,089
-------------- --------------
KOREA 5.86%
APPLIANCES/HOUSE 1.61%
23,051 Samsung Electric Co. .................................... 3,516,312 3,139,818
9,960 Samsung Electric Co. - New .............................. 1,282,150 1,324,672
-------------- --------------
4,798,462 4,464,490
AUTOMOBILES 0.26%
13,000 Hyundai Motor Co. ....................................... 663,277 730,479
BANKING 1.14%
122,500 Shinhan Bank ............................................ 2,760,486 3,159,688
CHEMICALS 0.46%
60,980 L.G. Chemicals .......................................... 1,214,971 1,295,766
CONSTRUCTION & HOUSING 0.20%
10,528 Hyundai Engineering ..................................... 543,027 546,031
</TABLE>
12
<PAGE>
<TABLE>
SCHEDULE OF INVESTMENTS - (CONTINUED) THE ASIA TIGERS FUND, INC.
APRIL 30, 1996 (UNAUDITED)
<CAPTION>
NUMBER PERCENT
OF SHARES SECURITY OF HOLDINGS COST VALUE
- - ------------------------------------------------------------------------------------------------------------------------------------
COMMON STOCKS: KOREA (continued)
<C> <S> <C> <C> <C>
MACHINERY & ENGINEERING 0.15%
38,000 Daewoo Heavy Industries ................................. $ 469,190 $ 422,385
METALS - STEEL 0.75%
22,000 Pohang Iron & Steel Co. ................................. 2,008,063 2,086,353
TELECOMMUNICATIONS 0.35%
6,900 Korea Mobile Telecommunications ......................... 577,691 968,816
TRANSPORTATION - AIR 0.11%
9,100 Korean Air Lines Co. .................................... 344,728 297,627
UTILITIES ELECTRIC & GAS 0.83%
49,000 Korea Electric Power .................................... 2,071,591 2,313,950
-------------- --------------
TOTAL KOREA ............................................. 15,451,486 16,285,585
-------------- --------------
MALAYSIA 14.01%
BANKING 2.36%
465,000 DCB Holdings Berhad ..................................... 1,102,676 1,697,489
500,000 Malayan Banking ......................................... 3,828,240 4,874,037
-------------- --------------
4,930,916 6,571,526
BEVERAGE & TOBACCO 1.04%
910,000 RJ Reynolds ............................................. 2,168,793 2,883,906
FINANCIAL SERVICES 1.23%
170,000 Arab Malaysian Finance-Foreign .......................... 661,076 784,259
389,000 Hong Leong Credit ....................................... 1,672,180 1,935,013
200,000 Rashid Hussain .......................................... 636,984 706,033
-------------- --------------
2,970,240 3,425,305
LEISURE & TOURISM 3.38%
780,000 Genting Berhad .......................................... 7,612,059 7,008,986
1,375,000 Magnum Corp. Berhad ..................................... 2,037,903 2,382,863
-------------- --------------
9,649,962 9,391,849
MACHINERY & ENGINEERING 0.74%
355,000 UMW Holdings ............................................ 999,180 1,167,763
130,000 United Engineers ........................................ 911,832 891,768
-------------- --------------
1,911,012 2,059,531
</TABLE>
13
<PAGE>
<TABLE>
SCHEDULE OF INVESTMENTS - (CONTINUED) THE ASIA TIGERS FUND, INC.
APRIL 30, 1996 (UNAUDITED)
<CAPTION>
NUMBER PERCENT
OF SHARES SECURITY OF HOLDINGS COST VALUE
- - ------------------------------------------------------------------------------------------------------------------------------------
COMMON STOCKS: MALAYSIA (continued)
<C> <S> <C> <C> <C>
MULTI-INDUSTRY 1.00%
1,000,000 Sime Darby Berhad ....................................... $ 2,732,932 $ 2,767,972
TELECOMMUNICATIONS 1.73%
510,000 Telekom Malaysia Berhad ................................. 4,189,888 4,807,846
TRANSPORTATION - AIR 0.62%
1,100,000 Malaysian Helicopter .................................... 1,877,892 1,712,131
TRANSPORTATION - SHIPPING 0.69%
600,000 Malaysian International Shipping-Foreign ................ 1,857,939 1,925,545
UTILITIES ELECTRIC & GAS 1.22%
800,000 Tenaga Nasional Berhad .................................. 3,246,402 3,401,797
-------------- --------------
TOTAL MALAYSIA .......................................... 35,535,976 38,947,408
-------------- --------------
PAKISTAN 0.69%
BUILDING MATERIALS & COMPONENTS 0.00%
12,700 DG Khan Cement .......................................... 30,079 6,768
ENERGY SOURCES 0.39%
117,000 Pakistan State Oil ...................................... 1,004,444 1,081,867
FOREST PRODUCTS & PAPER 0.16%
125,000 Packages ................................................ 719,337 428,489
MULTI-INDUSTRY 0.14%
60,000 Pakistan Investment Fund ................................ 625,475 397,500
-------------- --------------
TOTAL PAKISTAN .......................................... 2,379,335 1,914,624
-------------- --------------
PHILIPPINES 1.25%
BANKING 0.10%
19,000 Philippine National Bank ................................ 259,227 283,691
CONSTRUCTION & HOUSING 0.27%
1,100,000 D M Consunji Holdings ................................... 502,154 736,983
</TABLE>
14
<PAGE>
<TABLE>
SCHEDULE OF INVESTMENTS - (CONTINUED) THE ASIA TIGERS FUND, INC.
APRIL 30, 1996 (UNAUDITED)
<CAPTION>
NUMBER PERCENT
OF SHARES SECURITY OF HOLDINGS COST VALUE
- - ------------------------------------------------------------------------------------------------------------------------------------
COMMON STOCKS: PHILIPPINES (continued)
<C> <S> <C> <C> <C>
REAL ESTATE 0.45%
1,200,200 Filinvest Land-B* ....................................... $ 525,399 $ 620,318
2,707,000 Robinson's Land Corp.* .................................. 419,035 632,186
-------------- --------------
944,434 1,252,504
RECREATION & CONSUMER GOODS 0.10%
340,000 Mondragon International ................................. 189,199 276,608
TELECOMMUNICATIONS 0.16%
9,000 Philippine Long Distance Telephone ADR .................. 502,648 452,250
UTILITIES ELECTRIC & GAS 0.17%
50,000 Manila Electric Company B ............................... 375,025 467,075
-------------- --------------
TOTAL PHILIPPINES ....................................... 2,772,687 3,469,111
-------------- --------------
SINGAPORE 11.96%
AUTOMOBILES 0.57%
130,000 Cycle & Carriage ........................................ 1,414,592 1,572,618
Banking 4.62%
260,000 Development Bank of Singapore-Foreign ................... 2,717,522 3,293,247
440,000 Overseas Chinese Bank Corp.-Foreign ..................... 5,176,691 6,042,838
360,000 United Overseas Bank-Foreign ............................ 3,502,360 3,509,571
-------------- --------------
11,396,573 12,845,656
BEVERAGE & TOBACCO 0.57%
144,000 Fraser & Neave Ltd. ..................................... 1,391,952 1,598,520
BROADCAST/PUBLISHING 0.68%
100,000 Singapore Press-Foreign ................................. 1,496,998 1,892,834
MACHINERY & ENGINEERING 0.67%
206,000 Keppel Corporation ...................................... 1,676,340 1,861,667
REAL ESTATE 2.85%
39,000 Bukit Sembawang Estates ................................. 852,461 1,064,292
350,000 City Developments ....................................... 1,626,719 3,063,403
151,000 City Developments Warrants (Expiration date 7/18/98)* ... 645,991 1,015,406
415,000 DBS Land ................................................ 1,227,503 1,683,270
420,000 Wing Tai Holdings ....................................... 1,031,368 1,087,882
-------------- --------------
5,384,042 7,914,253
</TABLE>
15
<PAGE>
<TABLE>
SCHEDULE OF INVESTMENTS - (CONTINUED) THE ASIA TIGERS FUND, INC.
APRIL 30, 1996 (UNAUDITED)
<CAPTION>
NUMBER PERCENT
OF SHARES SECURITY OF HOLDINGS COST VALUE
- - ------------------------------------------------------------------------------------------------------------------------------------
COMMON STOCKS: SINGAPORE (continued)
<C> <S> <C> <C> <C>
TRANSPORTATION - AIR 2.00%
550,000 Singapore Airlines-Foreign .............................. $ 5,081,116 $ 5,557,532
-------------- --------------
TOTAL SINGAPORE ......................................... 27,841,613 33,243,080
-------------- --------------
SRI LANKA 0.17%
FINANCIAL SERVICES 0.17%
80,000 Development Finance Company of Ceylon ................... 617,294 472,831
-------------- --------------
TOTAL SRI LANKA ......................................... 617,294 472,831
-------------- --------------
TAIWAN 1.21%
DATA PROCESSING 0.04%
10,000 Acer Inc. GDR ........................................... 129,900 113,750
ELECTRONICS 0.37%
70,000 Advanced Semiconductor Engineering GDR* ................. 905,250 1,024,100
METALS - STEEL 0.80%
100,000 China Steel GDR ......................................... 1,943,750 2,225,000
-------------- --------------
TOTAL TAIWAN ............................................ 2,978,900 3,362,850
-------------- --------------
THAILAND 13.82%
BANKING 6.95%
340,000 Bangkok Bank-Foreign .................................... 3,528,488 4,942,018
345,000 Bank of Ayudhya-Foreign ................................. 1,855,979 2,041,501
685,000 Industry Finance-Foreign ................................ 2,265,300 2,774,821
285,000 Krung Thai Bank-Foreign ................................. 911,300 1,403,495
200,000 Siam Commercial Bank-Foreign ............................ 1,984,971 2,954,726
450,000 Thai Farmer's Bank-Foreign .............................. 3,306,112 5,182,685
-------------- --------------
13,852,150 19,299,246
BUILDING MATERIALS & COMPONENTS 1.02%
55,000 Siam Cement-Foreign ..................................... 3,195,403 2,839,555
ELECTRICAL & ELECTRONICS 0.76%
88,000 Shinawatra Computers-Foreign ............................ 2,585,050 2,110,882
</TABLE>
16
<PAGE>
<TABLE>
SCHEDULE OF INVESTMENTS - (CONTINUED) THE ASIA TIGERS FUND, INC.
APRIL 30, 1996 (UNAUDITED)
<CAPTION>
NUMBER PERCENT
OF SHARES SECURITY OF HOLDINGS COST VALUE
- - ------------------------------------------------------------------------------------------------------------------------------------
COMMON STOCKS: THAILAND (continued)
<C> <S> <C> <C> <C>
ENERGY SOURCES 0.77%
153,500 PTT Exploration-Foreign ................................. $ 1,626,709 $ 2,145,830
FINANCIAL SERVICES 2.07%
100,000 Dhana Siam .............................................. 664,483 619,539
305,000 Finance One-Foreign ..................................... 1,934,036 2,143,963
280,000 Nava Finance-Foreign .................................... 903,703 850,675
245,000 Phatra Thanakit-Foreign ................................. 1,049,207 2,140,588
-------------- --------------
4,551,429 5,754,765
REAL ESTATE 0.83%
149,000 Land and House-Foreign .................................. 2,986,605 2,307,784
TELECOMMUNICATIONS 1.42%
85,000 Advanced Info Service-Foreign ........................... 553,427 1,424,543
180,000 United Communication-Foreign ............................ 2,563,579 2,516,283
-------------- --------------
3,117,006 3,940,826
-------------- --------------
TOTAL THAILAND .......................................... 31,914,352 38,398,888
TOTAL COMMON STOCKS 211,703,545 238,276,864
============== ==============
PAR VALUE
($000)
- - ------------------------------------------------------------------------------------------------------------------------------------
CONVERTIBLE BONDS 5.33%
- - ------------------------------------------------------------------------------------------------------------------------------------
HONG KONG 2.07%
LEISURE & TOURISM 0.36%
940 HSH Overseas Finance 5.00%, 01/06/01 .................... $ 1,001,057 $ 1,017,550
REAL ESTATE 1.71%
1,500 New World 4.375%, 12/11/00 .............................. 1,638,125 1,558,125
1,200 Sino Land 5.00%, 10/21/00 ............................... 1,726,225 1,584,000
1,400 Wharf 144A 5.00%, 07/15/00 .............................. 1,536,821 1,603,000
-------------- --------------
4,901,171 4,745,125
-------------- --------------
TOTAL HONG KONG ......................................... 5,902,228 5,762,675
-------------- --------------
</TABLE>
17
<PAGE>
<TABLE>
SCHEDULE OF INVESTMENTS - (CONTINUED) THE ASIA TIGERS FUND, INC.
APRIL 30, 1996 (UNAUDITED)
<CAPTION>
PAR VALUE PERCENT
($000) SECURITY OF HOLDINGS COST VALUE
- - ------------------------------------------------------------------------------------------------------------------------------------
CONVERTIBLE BONDS (continued)
<C> <S> <C> <C> <C>
INDIA 0.17%
METALS - STEEL 0.17%
500 Jindal Strips 4.25%, 03/31/99 ........................... $ 552,479 $ 472,500
-------------- --------------
TOTAL INDIA ............................................. 552,479 472,500
-------------- --------------
MALAYSIA 1.15%
MACHINERY & ENGINEERING 1.15%
2,700 United Engineers 144A 2.00%, 03/01/04 ................... 3,000,809 3,199,500
-------------- --------------
TOTAL MALAYSIA .......................................... 3,000,809 3,199,500
-------------- --------------
PHILIPPINES 0.34%
BANKING 0.34%
800 Metro Bank 2.75%, 09/10/00 .............................. 917,125 941,000
-------------- --------------
TOTAL PHILIPPINES ....................................... 917,125 941,000
-------------- --------------
TAIWAN 1.60%
DATA PROCESSING 0.17%
200 Acer 4.00%, 06/10/01 .................................... 675,882 490,000
ELECTRICAL COMPONENTS 0.90%
2,000 United Micro Electronics 144A 1.25%, 06/08/04 ........... 2,564,000 2,495,000
TRANSPORTATION - SHIPPING 0.53%
1,250 Yangming 2.00%, 10/06/01 ................................ 1,373,750 1,468,750
-------------- --------------
TOTAL TAIWAN ............................................ 4,613,632 4,453,750
-------------- --------------
TOTAL CONVERTIBLE BONDS ................................. 14,986,273 14,829,425
============== ==============
</TABLE>
18
<PAGE>
<TABLE>
SCHEDULE OF INVESTMENTS - (CONTINUED) THE ASIA TIGERS FUND, INC.
APRIL 30, 1996 (UNAUDITED)
<CAPTION>
NUMBER PERCENT
OF SHARES SECURITY OF HOLDINGS COST VALUE
- - ------------------------------------------------------------------------------------------------------------------------------------
<C> <S> <C> <C> <C>
- - ------------------------------------------------------------------------------------------------------------------------------------
SHORT-TERM OBLIGATIONS 8.92%
- - ------------------------------------------------------------------------------------------------------------------------------------
MUTUAL FUND 0.21%
573,419 Temporary Investment Fund, Inc. ......................... $ 573,419 $ 573,419
-------------- --------------
TOTAL MUTUAL FUND ....................................... 573,419 573,419
============== ==============
PAR VALUE
($000)
- - ------------------------------------------------------------------------------------------------------------------------------------
TIME DEPOSITS 3.71%
10,300 Chase Manhattan Bank
London Time Deposit 5.1875%, 05/01/96.............. $ 10,300,000 $ 10,300,000
-------------- --------------
TOTAL TIME DEPOSITS ..................................... 10,300,000 10,300,000
-------------- --------------
UNITED STATES TREASURY BILLS 5.00%
1,000 U.S. Treasury Bill 4.71143%, 05/16/96 ................... 998,037 998,037
3,000 U.S. Treasury Bill 4.89414%, 05/16/96 ................... 2,993,882 2,993,882
1,000 U.S. Treasury Bill 4.74349%, 06/13/96 ................... 994,243 994,082
1,000 U.S. Treasury Bill 4.89%, 06/13/96 ...................... 994,159 994,159
3,000 U.S. Treasury Bill 4.97%, 06/13/96 ...................... 2,982,191 2,982,245
5,000 U.S. Treasury Bill 4.95%, 07/25/96 ...................... 4,941,563 4,940,457
-------------- --------------
TOTAL U.S. TREASURY BILLS ............................... 13,904,075 13,902,862
-------------- --------------
TOTAL SHORT-TERM OBLIGATIONS ............................ 24,777,494 24,776,281
============== ==============
TOTAL INVESTMENTS 100% $251,467,312 $277,882,570
============== ==============
- - ----------------
FOOTNOTES AND ABBREVIATIONS:
ADR: American Depositary Receipts GDS: Global Depositary Shares
GDR: Global Depositary Receipts 144A: Restricted as to resale to institutional investors
* Non-income producing security.
** Aggregate cost for Federal income tax purposes is $252,238,981.
The aggregate gross unrealized appreciation (depreciation) for all securities is as follows:
Excess of value over tax cost $33,476,873
Excess of tax cost over value (7,833,284)
-----------
$25,643,589
===========
See accompanying notes to financial statements.
</TABLE>
19
<PAGE>
<TABLE>
<CAPTION>
STATEMENT OF ASSETS AND LIABILITIES THE ASIA TIGERS FUND, INC.
APRIL 30, 1996 (UNAUDITED)
<S> <C>
ASSETS
Investments at value (Cost $251,467,312) ................................................................. $ 277,882,570
Cash (including $1,910,102 of foreign currency holdings with
a cost of $1,903,739) .................................................................................. 3,165,914
Receivables:
Dividends ............................................................................................ 392,052
Interest ............................................................................................. 154,058
Securities sold ...................................................................................... 4,068,718
Unamortized organization costs ........................................................................... 62,827
Prepaid expenses ......................................................................................... 74,931
-------------
Total assets ....................................................................................... 285,801,070
-------------
LIABILITIES
Payable for securities purchased ......................................................................... 5,942,353
Due to investment manager ................................................................................ 226,782
Due to administrator ..................................................................................... 45,356
Accrued expenses ......................................................................................... 152,871
-------------
Total liabilities .................................................................................. 6,367,362
-------------
NET ASSETS ............................................................................................... $ 279,433,708
=============
NET ASSET VALUE PER SHARE ($279,433,708/20,514,984) ...................................................... $13.62
=============
Net assets consist of:
Capital stock, ($0.001 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 .................................................................... 93,959
Accumulated net realized loss on investments and foreign currency
related transactions ................................................................................. (33,629,589)
Net unrealized appreciation in value of investments and translation of
assets and liabilities denominated in foreign currencies ............................................. 26,437,295
-------------
$ 279,433,708
=============
</TABLE>
See accompanying notes to the financial statements.
20
<PAGE>
<TABLE>
<CAPTION>
STATEMENT OF OPERATIONS THE ASIA TIGERS FUND, INC.
FOR THE SIX MONTHS ENDED APRIL 30, 1996 (UNAUDITED)
INVESTMENT INCOME
<S> <C> <C>
Dividends (Net of taxes withheld of $181,278)..................................................... $ 1,722,832
Interest.......................................................................................... 933,593
-----------
Total investment income...................................................................... 2,656,425
-----------
EXPENSES
Management fees...................................................... 1,310,946
Administration fees.................................................. 262,189
Custodian fees....................................................... 254,313
Transfer agent fees.................................................. 19,289
Directors' fees...................................................... 11,652
Legal fees........................................................... 65,311
Insurance............................................................ 57,532
Printing............................................................. 42,677
Audit fees........................................................... 39,835
NYSE fees............................................................ 20,487
Amortization of organizational cost.................................. 12,138
Miscellaneous........................................................ 8,925
Total expenses............................................ --------- 2,105,294
-----------
Net investment income........................................................................ 551,131
-----------
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........................................................................ 1,579,775
Foreign currency related transactions........................................................ (144,689)
-----------
1,435,086
Net change in unrealized appreciation in value of investments and translation
of assets and liabilities denominated in foreign currencies .................................. 31,347,957
-----------
Net realized and unrealized gain on investments, foreign currency holdings
and other assets and liabilities denominated in foreign currencies ........................... 32,783,043
-----------
Net increase in net assets resulting from operations.............................................. $33,334,174
===========
</TABLE>
See accompanying notes to the financial statements.
21
<PAGE>
<TABLE>
STATEMENT OF CHANGES IN NET ASSETS THE ASIA TIGERS FUND, INC.
<CAPTION>
FOR THE
SIX MONTHS ENDED
APRIL 30, 1996 FOR THE YEAR ENDED
INCREASE (DECREASE) IN NET ASSETS (UNAUDITED) OCTOBER 31, 1995
------------- -------------
<S> <C> <C>
Operations
Net investment income .................................................................... $ 551,131 $ 1,746,883
Net realized gain (loss) on investments and foreign currency
related transactions .................................................................. 1,435,086 (35,295,462)
Net change in unrealized appreciation in value of investments,
foreign currency holdings and other assets and liabilities denominated
in foreign currencies ................................................................. 31,347,957 1,078,455
------------- -------------
Net increase (decrease) in net assets resulting from operations ............... 33,334,174 (32,470,124)
------------- -------------
DISTRIBUTIONS TO SHAREHOLDERS FROM
Net investment income ($0.08 and $0.06 per share, respectively) ............... (1,661,714) (1,169,355)
Net realized gains ($0.00 and $0.17 per share) ................................ -- (3,487,548)
------------- -------------
Net decrease in net assets resulting from distribution
to shareholders ............................................................ (1,661,714) (4,656,903)
------------- -------------
CAPITAL SHARE TRANSACTIONS
Offering costs charged to capital ........................................................ -- (21,715)
------------- -------------
Net decrease in net assets resulting from capital share transactions .......... -- (21,715)
------------- -------------
Total increase (decrease) in net assets .................................................. 31,672,460 (37,148,742)
NET ASSETS
Beginning of period ...................................................................... 247,761,248 284,909,990
------------- -------------
End of period (including undistributed net investment income
of $93,959 and $1,204,542) ............................................................ $ 279,433,708 $ 247,761,248
============= =============
</TABLE>
See accompanying notes to financial statements.
22
<PAGE>
<TABLE>
FINANCIAL HIGHLIGHTS THE ASIA TIGERS FUND, INC.
FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD
<CAPTION>
FOR THE PERIOD
NOVEMBER 29, 1993
FOR THE SIX (COMMENCEMENT
MONTHS ENDED FOR THE OF OPERATIONS)
APRIL 30, 1996 YEAR ENDED THROUGH
(UNAUDITED) OCTOBER 31, 1995 OCTOBER 31, 1994
----------- ---------------- ----------------
<S> <C> <C> <C>
Per Share Operating Performance:
Net asset value, beginning of period ................................ $12.08 $13.89 $13.97(1)
-------- -------- --------
Net investment income ............................................... 0.03 0.09 0.05
Net realized and unrealized loss on investments, foreign
currency holdings, and other assets and liabilities
denominated in foreign currencies ............................... 1.59 (1.67) (0.11)
-------- -------- --------
Net decrease from investment operations ............................. 1.62 (1.58) (0.06)
-------- -------- --------
Less distributions:
Dividends from net investment income ............................ (0.08) (0.06) (0.02)
Distributions from net realized gains ........................... -- (0.17) --
-------- -------- --------
Total dividends and distributions ................................... (0.08) (0.23) (0.02)
Net asset value, end of period ...................................... $13.62 $12.08 $13.89
======== ======== ========
Per share market value, end of period ................................... $12.00 $10.38 $12.38
TOTAL INVESTMENT RETURN BASED ON MARKET VALUE(2) ........................ (16.29)%(4) (14.17)% (11.65)%(4)
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (in 000s) ................................. $279,434 $247,761 $284,910
Ratios of expenses to average net assets ............................ 1.61%(3) 1.65% 1.60%(3)
Ratios of net investment income to average net assets ............... 0.42%(3) 0.71% 0.38%(3)
Portfolio turnover .................................................. 38.88% 77.88% 45.51%
Average commission rate paid ........................................ $0.0069 -- --
</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.
4 Not annualized.
23
<PAGE>
NOTES TO FINANCIAL STATEMENTS THE ASIA TIGERS FUND, INC.
APRIL 30, 1996 (UNAUDITED)
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 BZW Investment Management Inc. ("BZW"). At
April 30, 1996, 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 as follows:
(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 collectability 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 since
it is the Fund's intention to qualify as a regulated investment company and to
make the requisite distributions to its shareholders that 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.
24
<PAGE>
NOTES TO FINANCIAL STATEMENTS - (CONTINUED) THE ASIA TIGERS FUND, INC.
APRIL 30, 1996 (UNAUDITED)
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.
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 realized gains and losses on 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 possibility 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.
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 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 that 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.
25
<PAGE>
NOTES TO FINANCIAL STATEMENTS - (CONTINUED) THE ASIA TIGERS FUND, INC.
APRIL 30, 1996 (UNAUDITED)
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.
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, 1996, fees paid to the Investment Manager,
amounted to $1,310,946, of which the Investment Manager informed the Fund it
paid $655,473 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 six months ended
April 30, 1996, these fees amounted to $262,189.
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
$89,218,992 and $92,859,243, respectively, for the six months ended April 30,
1996.
26
<PAGE>
NOTES TO FINANCIAL STATEMENTS - (CONTINUED) THE ASIA TIGERS FUND, INC.
APRIL 30, 1996 (UNAUDITED)
NOTE D: OTHER
At April 30, 1996, 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 $4,679,847 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.
27
<PAGE>
DIVIDENDS AND DISTRIBUTIONS; THE ASIA TIGERS FUND, INC.
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, that 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.
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
28
<PAGE>
DIVIDENDS AND DISTRIBUTIONS; - (CONTINUED) THE ASIA TIGERS FUND, INC.
DIVIDEND REINVESTMENT AND CASH PURCHASE PLAN
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 that may be payable on such dividends or
distributions.
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.
29
<PAGE>
RESULTS OF THE ANNUAL SHAREHOLDERS MEETING THE ASIA TIGERS FUND, INC.
The Fund held its annual shareholders meeting on February 23, 1996. 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, 1996.
The following tables provide information concerning the matters voted on at the
meeting:
I. ELECTION OF DIRECTORS
NOMINEE VOTES FOR VOTES ABSTAINED
- - ------- --------------- ---------
Leslie H. Gelb 15,319,038 386,869
II. Ratification of Price Waterhouse LLP as the
Independent Accountants of the Fund
VOTES FOR VOTES AGAINST VOTES ABSTAINED
- - --------- ------------- ---------------
15,400,062 187,343 118,502
30
<PAGE>
THE ASIA TIGERS FUND, INC.
INVESTMENT ADVISER:
BZW INVESTMENT MANAGEMENT INC.
INVESTMENT MANAGER:
ADVANTAGE ADVISERS, INC.
ADMINISTRATOR:
OPPENHEIMER & CO., INC.
SUB-ADMINISTRATOR:
PFPC INC.
TRANSFER AGENT:
PNC BANK, NATIONAL ASSOCIATION
CUSTODIAN:
THE CHASE MANHATTAN BANK, N.A.
THE ASIA TIGERS FUND, INC.
Semiannual Report
April 30, 1996
ADVANTAGE ADVISERS, INC.
