The Asia Tigers Fund, Inc.
June 11, 1997
Dear Fund Shareholder,
We are pleased to present you with the unaudited financial statements of The
Asia Tigers Fund, Inc. for the six-months ended April 30, 1997. As the
Investment Adviser details in the following pages, the Fund's allocations and
investments have shifted during the six-month period to reflect current economic
and market conditions of the Asian region.
The Fund's net asset value ("NAV") closed at $12.76 per share on April 30, 1997,
returning 2.4% for the 6 month period and outperforming its benchmark, the MSCI
Asia Free Ex-Japan Index which was down 0.2% over the same time period. Since
its inception, the Fund has provided its shareholders with broad, dollar-based
exposure to the emerging equity markets of the Asian Pacific basin and the
Indian subcontinent. As of April 30, 1997, the Fund held 113 issues in 13 Asian
countries.
Though the Fund's NAV rose modestly over the period, there was a substantial
amount of variation in the returns of individual countries. China, for example,
rose 27.0% over the period, while Bangladesh declined nearly 70%. This
performance volatility is to be expected in emerging economies.
Going forward, the Investment Adviser expects the region's GDP to continue
growing at more than 6% for at least the next ten years. Together with
reasonable equity valuations, this remarkably strong economic growth in the
region reaffirms the Investment Adviser's belief that, in terms of long-term
growth of equity capital, Asia remains a solid investment opportunity.
On behalf of the Board of Directors, thank you for your participation in the
Fund.
Sincerely,
/s/Alan Rappaport
- - ---------------------
Alan Rappaport
Chairman
<PAGE>
Report of the Investment Adviser The Asia Tigers Fund Inc.
Performance
The six-month period ended April 30, 1997, was one in which the Asian region
(excluding Japan) provided very little return, collectively, for the equity
investor. The MSCI Combined Asia Free Ex-Japan regional benchmark that the Asia
Tigers Fund (the "Fund") uses for performance comparison purposes fell 0.2%.
During the same period, the Fund's net asset value ("NAV") rose 2.4%.
Although collectively the region was flat, individual country performances were
remarkably divergent. Four markets in the region provided strong, positive
double-digit returns: China (up 27.0%), Taiwan (up 25.5%), Sri Lanka (up 21.3%)
and India (up 16.3%). Bangladesh was the worst-performing market, losing nearly
70% of its value, though the Fund's minor exposure to the country (less than
0.1% of NAV) resulted in a very small overall effect on the Fund's portfolio.
Thailand's 25.8% loss had more of an effect on the Fund's net asset value given
the larger size of the country weight (3.3% of NAV). Korea, which fell 12.8%,
and the Philippines, down 8.1%, also registered particularly poor performances
during the period.
Country Allocation
During the six-month period, the Fund shifted its geographic allocation.
Allocations were made between countries in the region based on changing
underlying economic conditions and relative equity valuations. Since the end of
October 1996, the more significant changes in the Fund's country weights include
an increase in Indonesia and China and a decrease to Malaysia and Thailand. The
Fund's cash level rose from 6.0% to 11.0%. The pie charts below represent the
Fund's breakdown at the beginning and end of the current semiannual period.
[THE FOLLOWING TABLE WAS REPRESENTED AS A PIE CHART IN THE PRINTED MATERIAL]
Percent of Cash
October 31, April 30,
1996 1997
USA 6.0% 11.0%
Hong Kong 29.8% 29.9%
Malaysia 18.5% 13.3%
Taiwan 10.6% 10.4%
Singapore 9.3% 10.8%
India 7.2% 7.2%
Thailand 6.9% 3.0%
Korea 4.1% 2.6%
Indonesia 3.8% 7.4%
Philippines 3.2% 2.8%
Pakistan 0.3% 0.4%
Bangladesh 0.2% 0.0%
Sir Lanka 0.1% 0.0%
China 0.0% 1.2%
- - --------------------------------------------------------------------------------
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 under ticker symbol GRR.
If you have any questions or would like an update on the Fund, please call our
toll-free phone number, (800)421-4777. This number provides a recorded monthly
market review as well as specific details about the Fund, its portfolio and
performance.
- - --------------------------------------------------------------------------------
2
<PAGE>
Regional Outlook
Overall, the economies of Asia remain on a strong growth path. The largest and
most important economy in the region is China. After slowing inflation from 24%
in 1994 to an annualized rate of just 1.7% in March of 1997, the Chinese
government is now re-accelerating the economy. The economy is expected to grow
10.5% in 1997 combined with this single digit inflation. Double-digit growth in
China should fuel the rest of the region's economic growth.
In the near term, however, the prospects of higher interest rates in the United
States and in most dollar-linked Asian countries, the volatility on Wall Street
and the continued flow of investment out of the Asian region have led us to take
a more cautious short-term view of Asian markets. As a prudent strategy, we have
raised the cash level in the Fund. We expect that, in the immediate future, a
major incentive to boost this investor sentiment is unlikely, and that most
markets are at best likely to move in a trading range. We also believe that
there should be better buying opportunities in the second half of this year
after the present consolidation.
We have grown more cautious with the Fund's exposures to Malaysia, Singapore,
the Philippines and, to a lesser extent, Hong Kong. We expect that Malaysia will
continue to underperform after recent credit tightening by its central bank. In
addition, the property problems and increased risk of overheating in the
Philippines have led us to take a more cautious stance there. Despite the
caution surrounding the media's focus on the negative aspects of Hong Kong's
upcoming change in sovereignty, we believe that 1997 should be a strong year for
both the local economy and equity market. Hence, we have maintained our positive
view on Hong Kong.
While we do not find the current Asian equity valuations exceptionally
inexpensive, we believe the region remains arguably the best in the world for
long-term growth of equity capital. In our opinion, equity valuations are
reasonable and economic growth is remarkably strong.
The following comments provide a brief summary of our view on the Fund's target
markets and on some of the stocks that made up the Fund's portfolio as of April
30, 1997.
- - --------------------------------------------------------------------------------
Bangladesh
US $0.07 million, 0.0% of the Fund's total investments
The Fund's Bangladesh exposure is focused on one company listed on the Dhaka
Stock Exchange. Though Bangladesh has one of the lowest per capita incomes in
the world, and is therefore home to severe pockets of poverty, we believe the
opportunity for large leaps in prosperity are perhaps greater there. Looking out
12 months, we expect Bangladesh's economy to grow in excess of 4.5%, corporate
earnings to grow around 30% and inflation to remain at or below 6%.
Beximco Pharmaceuticals is the fourth largest company on the Dhaka Stock
Exchange, with a capitalization of US$72 million. Beximco Pharmaceuticals
dominates the local pharmaceutical market with sales of US$57 million and a 15%
market share. The company distributes antibiotics, anti-ulcers, anti-rheumatics,
anti-allergenics, antidepressants and vitamins. At its April 30 price of 106
Bangladesh taka, the stock is trading at 7.3 times 1997 estimated earnings per
share. With its 1997 earnings per share (EPS) growing at 18%, we consider
Beximco an attractively priced stock.
3
<PAGE>
- - --------------------------------------------------------------------------------
China
US $3.1 million, 1.2% of the Fund's total investments
The Chinese economy is benefiting from the government's successful efforts to
curb inflation. After peaking at 24% in 1994, China's inflation is expected to
fall below 10% for 1997. In addition, the State Planning Commission predicts
that gross domestic product will grow 10.5% in 1997, accelerating from 1996's
pace of 9.4%.
Most of the Fund's greater China exposure is in Hong Kong-based firms that are
significantly active in China. The Fund holds one "H-share," a Chinese mainland
state-owned enterprise that has listed a minority stake on the Hong Kong stock
exchange. Beijing Datang Power Generation Company develops, constructs, owns and
operates coal-fired electric power plants in northern China. The company is in a
key position to benefit from the rapid development occurring in the metropolitan
area surrounding China's capital city.
- - --------------------------------------------------------------------------------
Hong Kong
US $77.7 million, 29.9% of the Fund's total investments
Hong Kong's Financial Secretary, Donald Tsang, has forecast a stronger economy
in 1997. Led by better retail sales and exports, the economy should grow 5.5%.
Hong Kong's new Chief Executive, respected businessman C. H. Tung, is well
accepted by the community and is expected to provide able leadership for China's
newest "Special Administrative Region." In addition, the Hong Kong stock
market's sensitivity to interest rates is falling as more China-related
companies are listed on the exchange.
HSBC Holdings PLC is the Fund's largest holding in Hong Kong as well as the
biggest single holding as a percentage of total net assets (3.7% of NAV). HSBC
Holdings PLC offers international banking and financial services not only in the
Asia Pacific region, but in Europe, the Middle East and the Americas. With over
100 years of operating history in both China and India, HSBC is a core holding
for the Fund.
- - --------------------------------------------------------------------------------
India
US $18.7 million, 7.2% of the Fund's total investments
Despite changes and uncertainty regarding India's political leadership, there is
little doubt that the economic liberalizing policies that began in 1991 will
continue to move forward. For the fiscal year ending March 31, 1997, we expect
to see that the economy grew 6.8% and corporate earnings growth was flat. In
fiscal year 1998, we expect earnings growth to accelerate to about 20%. Although
the stock market has moved up strongly in the first part of 1997, valuations
remain attractive. The market is currently trading at a price/earnings ratio of
15x.
One of the Fund's largest positions in India is Hindustan Lever. The company is
India's largest consumer products company and dominates the market for branded
soap, detergent and personal care products. At a price of 1,093 Indian rupees,
the company had a market capitalization of US$6.1 billion at April 30, 1997.
4
<PAGE>
- - --------------------------------------------------------------------------------
Indonesia
US $19.3 million, 7.4% of the Fund's total investments
Although Indonesia has experienced some political turmoil before its general
election, 1997's expected corporate earnings growth of 20% makes it one of the
fastest growing markets in the region. In addition, Indonesia's financial
position has been improving. For example, its current account deficit as a
percent of GDP has been falling. This is a positive sign as this trend is proof
that the country is better able to match its imports and exports.
PT Telekomunikasi Indonesia is the Fund's largest investment in this nation of
some 200 million people. The company is the dominant provider of both local and
long distance telephone services. Over the medium term, we believe it will
continue to benefit from its dominant market position, access-line growth and
productivity gains.
- - --------------------------------------------------------------------------------
Korea
US $6.7 million, 2.6% of the Fund's total investments
Prior to 1992, foreigners were not allowed to directly invest in Korea. The
ongoing process of opening the capital markets continues; foreign ownership
limits rose to 23% on May 1, 1997. Korea offers investors exposure to some of
the world's largest producers of industrial commodities--semiconductors,
petrochemicals and steel. Korean domestic interest rates are structurally too
high and the government has set policies to lower the interest expense burden
that indebted corporations currently carry. Dramatic political scandals have
resulted in the imprisonment of two the country's former presidents. Major
corporate bankruptcies, disappointing exports and earnings and the scandals have
had an obvious and damaging effect on stock prices.
Shinhan Bank was originally set up in 1982 by a group of Japanese-Korean
businessmen and was first listed on the stock exchange in 1989. Through its 185
domestic branches, Shinhan Bank offers a broad range of financial services and
is one of the most profitable banks in Korea. In addition, the Bank's capital
position is among the highest in its peer group, with a capital ratio of 11.8%
defined by the Bank for International Settlements.
- - --------------------------------------------------------------------------------
Malaysia
US $34.5 million, 13.3% of the Fund's total investments
The Malaysian market is reasonably valued, trading at a price/earnings ratio of
16.8 times 1997 forecast earnings, which are expected to grow 15% in 1997.
Malaysia's central bank tightened credit policy earlier this year by reducing
the amount of bank lending to property and share financing. Although the
tightening will likely mean lower corporate profits this year, the action was
prudent to reduce the risk of an overheating economy.
The Fund's largest Malaysian investment is UMW Holdings. UMW manufactures and
distributes industrial, construction and agricultural equipment. In addition,
the company imports, assembles and markets passenger and commercial vehicles.
5
<PAGE>
- - --------------------------------------------------------------------------------
Pakistan
US $0.1 million, 0.4% of the Fund's total investments
Pakistan's government finances are strained with over US$5 billion in government
debt due by the end of 1997. The International Monetary Fund expects to see
economic-liberalization measures in the upcoming budget in order to extend
needed loans to the country. The current international focus on Pakistan's
reforms should help set the country on firmer ground for sustainable economic
growth in the future.
The Fund's only holding in Pakistan is Pakistan State Oil, the country's largest
oil marketing company with control of 78% the domestic market and over 2,200
service stations. The company's monopoly position has allowed it to win key
contracts such as the fuel supply agreement for the 1,292 MW Hub power station.
Pakistan State Oil is a core holding for the Fund.
- - --------------------------------------------------------------------------------
Philippines
US $7.2 million, 2.8% of the Fund's total investments
There will likely be earnings disappointments in the current year as
listed-property companies in the Philippines have seen a significant slowdown in
sales. Having lowered our expectations, we still expect corporations to report
strong double-digit earnings growth in 1997.
In the Philippines, the Fund's top holding is San Miguel. San Miguel has a
dominant consumer franchise in the food, beverage and packaging industries. In
the year ending 1996, San Miguel had sales growth of over 11% to US$3.2 billion
and net profits in excess of US$200 million. San Miguel's future sales and
earnings growth prospects are bright given the increasing standard of living in
the Philippines.
- - --------------------------------------------------------------------------------
Singapore
US $27.9 million, 10.8% of the Fund's total investments
Singapore is consistently ranked as one of the most competitive economies in the
world. Singapore offers excellent infrastructure, a highly educated workforce
and a stable political environment. In 1997, we expect Singapore's economy to
grow about 7%, led by a recovery in electronic exports.
The Fund's largest position in Singapore is OCBC Bank. OCBC has 57 branches in
Singapore, 25 in Malaysia and a further 20 overseas branches in other countries
around the world. The company owns one of the largest land banks in Singapore,
and the stock commands a premium multiple to its banking peer group.
- - --------------------------------------------------------------------------------
Sri Lanka
US $0.1 million, 0.0% of the Fund's total investments
Sri Lanka has existed under a cloud from a civil war in the north of the country
since 1983. The conflict has imposed high costs on the country, not only in
lives lost, but in the budgetary strain of financing a significant military
effort. Sir Lanka's economy is expected to rebound from last year's depressed
rate of growth of just 3.7% to 5.0% in 1997 because there are recoveries in
agriculture, construction and manufacturing.
6
<PAGE>
The Fund maintains a modest strategic exposure in Sri Lanka in light of the good
growth possibilities as the country adopts market-oriented policies. Development
Finance Corporation of Ceylon is The Asia Tigers Fund's only Sri Lanka holding.
The company is able to access low-cost funding and can offer attractive
financing for companies in need of capital. The company has a dominate market
share and a market capitalization of US$141 million as of April 30, 1997.
- - --------------------------------------------------------------------------------
Taiwan
US $27.0 million, 10.4% of the Fund's total investments
Taiwan's economy is improving. Industrial output and money supply are growing
from a low level. In addition, as domestic deposit rates have fallen, stocks
have received a boost. Although earnings growth will be modest at about 10% in
1997 and market valuations appear stretched at a price/earnings ratio of 27x,
positive liquidity issues and a recovering economy make Taiwan an important
component of the portfolio.
The Fund's largest holding in Taiwan is Acer Inc. Acer is an integrated producer
of computer and computer parts. We expect stable growth for Acer's desktop and
computer motherboard business, and dramatic growth for the PC notebook division.
TI Acer is a 50/50 joint venture between Texas Instruments and Acer that
produces computer memory chips.
- - --------------------------------------------------------------------------------
Thailand
US $7.8 million, 3.0% of the Fund's total investments
Thailand has been a poorly performing market with attacks made on its currency
due to slower-than-expected exports and a high current account deficit.
Persistent high real interest rates have negatively impacted on corporate
earnings and exacerbated asset quality concerns in the finance and property
sectors. In recent months, the current deficit has begun to improve.
In Thailand, the Fund's largest holding is Bangkok Bank. The bank offers a broad
range of financial services through its 465 domestic branches and 22 offices in
13 countries worldwide. Among its Thai banking peer group, Bangkok Bank has a
reputation for the quality of its loan portfolio and the conservative nature of
its management.
- - --------------------------------------------------------------------------------
Barclays Global Investors International, Inc.
Hong Kong
June 11, 1997
7
<PAGE>
Schedule of Investments The Asia Tigers Fund, Inc.
April 30, 1997 (Unaudited)
<TABLE>
<CAPTION>
Number Percent
of Shares Security of Holdings Cost Value
- - ----------------------------------------------------------------------------------------------------------
==========================================================================================================
C0MMON STOCKS 88.29%
==========================================================================================================
<S> <C> <C> <C> <C>
BANGLADESH 0.03%
Health/Personal Care 0.03%
30,000 Beximco Pharmaceuticals.................................. $ 116,527 $ 73,717
---------- ----------
TOTAL BANGLADESH......................................... 116,527 73,717
---------- ----------
CHINA 1.20%
Utilities - Electric & Gas 1.20%
6,000,000 Beijing Datang Power Generation*......................... 2,439,648 3,117,537
---------- ----------
TOTAL CHINA.............................................. 2,439,648 3,117,537
---------- ----------
HONG KONG 29.91%
Banking 7.18%
760,620 Bank of East Asia........................................ 2,443,046 2,616,733
570,000 Hang Seng Bank........................................... 5,637,895 6,419,996
380,000 HSBC Holdings............................................ 4,648,493 9,614,665
---------- ----------
12,729,434 18,651,394
---------- ----------
Multi-Industry 9.29%
2,300,000 China Resources Enterprise............................... 2,914,319 6,353,837
600,000 Citic Pacific............................................ 2,267,046 3,245,336
3,000,000 Guangdong Investments.................................... 2,080,043 2,807,720
1,250,000 Hutchison Whampoa........................................ 7,149,695 9,278,384
2,000,000 Hutchison Whampoa Warrants (Exp. date 11/24/97)*......... 350,462 356,290
5,000,000 Hutchison Whampoa Warrants (Exp. date 1/16/98)*.......... 947,245 981,088
200,000 Shanghai Industrial Holdings*........................... 1,079,320 1,125,670
---------- ----------
16,788,130 24,148,325
---------- ----------
Real Estate 10.70%
1,000,000 Cheung Kong Holdings..................................... 6,394,206 8,778,158
3,000,000 Cheung Kong Warrants ( Exp. date 11/19/97)*.............. 411,785 271,090
900,000 New World Development.................................... 4,704,027 5,193,313
850,000 Sun Hung Kai Properties.................................. 7,597,889 9,217,066
3,000,000 Sun Hung Kai Properties Warrants (Exp. date 10/10/97)*... 934,762 398,890
1,039,255 Wharf Holdings........................................... 4,030,089 3,930,829
---------- ----------
24,072,758 27,789,346
---------- ----------
Utilities - Electric & Gas 2.74%
950,000 China Light & Power ..................................... 4,454,409 4,279,997
800,000 Hong Kong Electric ...................................... 2,846,393 2,829,665
---------- ----------
7,300,802 7,109,662
---------- ----------
TOTAL HONG KONG.......................................... 60,891,124 77,698,727
---------- ----------
</TABLE>
8
<PAGE>
Schedule of Investments (continued) The Asia Tigers Fund, Inc.
April 30, 1997 (Unaudited)
<TABLE>
<CAPTION>
Number Percent
of Shares Security of Holdings Cost Value
- - ----------------------------------------------------------------------------------------------------------
C0MMON STOCKS (continued)
<S> <C> <C> <C> <C>
INDIA 7.19%
Automobiles 0.20%
8,300 Bajaj Auto ............................................. $ 232,429 $ 211,475
303,700 Patheja Forgings ....................................... 738,655 185,167
11,800 Tata Engineering ....................................... 165,997 133,000
----------- -----------
1,137,081 529,642
----------- -----------
Banking 0.41%
500,000 Oriental Bank of Commerce .............................. 1,302,065 1,066,284
----------- -----------
Building Materials & Compo 0.31%
100,000 Gujarat Ambuja Cement .................................. 837,159 794,994
----------- -----------
Business/Public Service 0.69%
170,000 NIIT ................................................... 1,060,784 1,792,477
----------- -----------
Chemicals 0.64%
32,000 Reliance Industries .................................... 249,151 275,654
70,000 Reliance Industries GDR* ............................... 1,216,250 1,373,400
----------- -----------
1,465,401 1,649,054
----------- -----------
Electricals & Electronics 0.25%
320,000 Crompton Greaves ....................................... 2,235,287 660,048
----------- -----------
Energy Sources 0.90%
200,000 Hindustan Petroleum .................................... 2,114,604 2,335,338
----------- -----------
Health/Personal Care 1.95%
207,000 Dr Reddy's Laboratories ................................ 1,529,228 1,309,852
58,500 Hindustan Lever ........................................ 1,322,975 1,788,295
108,000 Ranbaxy Labs ........................................... 2,196,091 1,958,831
----------- -----------
5,048,294 5,056,978
----------- -----------
Metals - Non Ferrous 0.33%
63,000 Indian Aluminium ....................................... 321,750 211,879
184,788 Indian Aluminium GDR ................................... 1,133,327 655,997
----------- -----------
1,455,077 867,876
----------- -----------
Telecommunications 1.19%
265,000 Mahanagar Telephone .................................... 2,110,988 2,175,290
46,200 Videsh Sanchar GDR* .................................... 681,179 912,219
----------- -----------
2,792,167 3,087,509
----------- -----------
Textiles & Apparel 0.32%
224,000 Arvind Mills ........................................... 748,467 842,623
----------- -----------
TOTAL INDIA ............................................ 20,196,386 18,682,823
----------- -----------
</TABLE>
9
<PAGE>
Schedule of Investments (continued) The Asia Tigers Fund, Inc.
April 30, 1997 (Unaudited)
<TABLE>
<CAPTION>
Number Percent
of Shares Security of Holdings Cost Value
- - ----------------------------------------------------------------------------------------------------------
C0MMON STOCKS (continued)
<S> <C> <C> <C> <C>
INDONESIA 7.42%
Automobiles 0.38%
273,000 Astra International..................................... $ 840,376 $ 999,877
----------- -----------
Banking 1.53%
4,199,993 Bank Internasional Indonesia............................. 2,619,766 3,024,686
355,554 Bank Internasional Indonesia Warrants (Exp. date 01/17/00)* 0 113,397
50,000 Indocement.............................................. 74,177 67,901
520,000 Panin Bank.............................................. 596,791 759,671
----------- -----------
3,290,734 3,965,655
----------- -----------
Beverage & Tobacco 1.26%
780,000 Gudang Garam............................................ 2,335,527 3,274,074
----------- -----------
Building Materials & Components 0.28%
300,000 Semen Gresik............................................ 936,163 731,481
----------- -----------
Food & Household Products 0.50%
900,000 Daya Guna Samudera*..................................... 1,280,990 1,305,556
----------- -----------
Forest Products & Paper 0.30%
950,760 Indah Kiat Paper........................................ 630,953 772,737
----------- -----------
Insurance 0.65%
1,388,000 Lippo Life Insurance.................................... 1,761,163 1,685,021
----------- -----------
Multi-Industry 0.39%
1,600,000 Mulia Industry.......................................... 982,500 1,004,115
----------- -----------
Telecommunications 2.13%
275,500 Telekomunikasi.......................................... 435,841 399,645
180,000 Telekomunikasi ADR...................................... 5,735,056 5,130,000
----------- -----------
6,170,897 5,529,645
----------- -----------
TOTAL INDONESIA......................................... 18,229,303 19,268,161
----------- -----------
KOREA 2.59%
Banking 0.59%
105,000 Shinhan Bank............................................ 2,418,977 1,522,735
----------- -----------
Construction & Housing 0.29%
37,547 Hyundai Engineering & Construction...................... 1,594,124 753,466
----------- -----------
</TABLE>
10
<PAGE>
Schedule of Investments (continued) The Asia Tigers Fund, Inc.
April 30, 1997 (Unaudited)
<TABLE>
<CAPTION>
Number Percent
of Shares Security of Holdings Cost Value
- - ----------------------------------------------------------------------------------------------------------
C0MMON STOCKS (continued)
<S> <C> <C> <C> <C>
KOREA(continued)
Electonic Components & Instruments 0.49%
25,000 LG Semiconductor........................................ $ 737,500 $ 776,345
10,700 Samsung Display Device.................................. 693,194 499,014
----------- -----------
1,430,694 1,275,359
----------- -----------
Metals - Steel 0.35%
12,000 Pohang Iron & Steel..................................... 1,068,585 904,951
----------- -----------
Telecommunications 0.30%
983 SK Telecommunications................................... 1,078,369 774,509
----------- -----------
Utilities Electric & Gas 0.57%
50,000 Korea Electric Power.................................... 1,931,273 1,491,031
----------- -----------
TOTAL KOREA............................................. 9,522,022 6,722,051
----------- -----------
MALAYSIA 12.60%
Banking 2.10%
715,000 DCB Holdings............................................ 2,321,664 2,321,151
315,000 Malayan Banking......................................... 2,984,574 3,136,825
----------- -----------
5,306,238 5,457,976
----------- -----------
Construction & Housing 0.06%
43,333 Gamuda.................................................. 96,005 156,210
----------- -----------
Leisure & Tourism 2.37%
560,00 Genting.................................................. 4,662,216 2,989,046
2,000,000 Magnum ................................................. 3,336,280 3,170,683
----------- -----------
7,998,49 6,159,729
----------- -----------
Machinery & Engineering 2.30%
660,000 UMW Holdings............................................ 2,079,709 3,470,225
353,000 United Engineers ....................................... 2,378,278 2,502,848
----------- -----------
4,457,987 5,973,073
----------- -----------
Multi-Industry 4.83%
700,000 Berjaya Sports Toto..................................... 2,970,391 3,345,947
226,000 Gadek Malaysia.......................................... 1,783,652 1,413,344
1,150,000 Hicom Holdings.......................................... 3,270,588 2,542,322
198,000 Malakoff................................................ 783,651 788,688
1,212,000 Renong.................................................. 1,867,125 1,660,737
900,00 Sime Darby.............................................. 2,613,168 2,778,331
----------- -----------
13,288,575 12,529,369
----------- -----------
</TABLE>
11
<PAGE>
<TABLE>
<CAPTION>
Schedule of Investments (continued) The Asia Tigers Fund, Inc.
April 30, 1997 (Unaudited)
Number Percent
of Shares Security of Holdings Cost Value
- - ----------------------------------------------------------------------------------------------------------
C0MMON STOCKS (continued)
<S> <C> <C> <C> <C>
MALAYSIA (continued)
Utilities Electric & Gas 0.94%
530,000 Tenaga Nasional......................................... $ 2,436,328 $ 2,448,915
----------- -----------
TOTAL MALAYSIA.......................................... 33,583,629 32,725,272
----------- -----------
PAKISTAN 0.38%
Energy Sources 0.38%
130,000 Pakistan State Oil ..................................... 891,944 979,856
----------- -----------
TOTAL PAKISTAN.......................................... 891,944 979,856
----------- -----------
PHILIPPINES 2.78%
Beverage & Tobacco 0.81%
730,000 San Miguel-B............................................ 2,743,612 2,103,906
----------- -----------
Construction & Housing 0.39%
2,000,000 D M Consunji Holdings*.................................. 1,401,411 1,023,891
----------- -----------
Real Estate 1.19%
6,200,000 Belle Corporation*...................................... 1,902,349 1,481,229
6,800,000 Filinvest Land*......................................... 2,462,211 1,598,786
----------- -----------
4,364,560 3,080,015
----------- -----------
Telecommunications 0.39%
18,000 Philippine Long Distance ADR............................ 1,085,081 1,003,500
----------- -----------
TOTAL PHILIPPINES....................................... 9,594,664 7,211,312
----------- -----------
SINGAPORE 10.75%
Automobiles 0.98%
250,000 Cycle & Carriage........................................ 2,778,364 2,557,015
----------- -----------
Banking 2.58%
160,000 Development Bank of Singapore........................... 1,962,898 1,901,866
410,000 Overseas Chinese Bank Corp.............................. 4,768,795 4,788,528
----------- -----------
6,731,693 6,690,394
----------- -----------
Beverage & Tobacco 0.73%
260,000 Fraser & Neave.......................................... 2,332,046 1,886,662
----------- -----------
</TABLE>
12
<PAGE>
Schedule of Investments (continued) The Asia Tigers Fund, Inc.
April 30, 1997 (Unaudited)
<TABLE>
<CAPTION>
Number Percent
of Shares Security of Holdings Cost Value
- - ----------------------------------------------------------------------------------------------------------
C0MMON STOCKS (continued)
<S> <C> <C> <C> <C>
SINGAPORE (continued)
Broadcasting/Publishing 0.50%
70,000 Singapore Press......................................... $ 1,294,573 $ 1,296,475
----------- -----------
Electronic Components & Instruments 0.61%
280,000 Elec & Eltek International.............................. 1,238,037 1,596,000
----------- -----------
Real Estate 4.05%
18,000 Bukit Sembawang Estates................................. 393,444 370,698
220,000 City Developments ...................................... 1,936,437 1,778,853
228,000 City Developments Warrants (Expiration date 7/18/98)*... 1,129,164 1,433,863
510,000 DBS Land**.............................................. 2,005,262 1,649,482
550,000 Keppel Land Limited..................................... 2,008,198 1,413,960
1,500,000 Wing Tai Holdings**..................................... 4,067,262 3,876,987
----------- -----------
11,539,767 10,523,843
----------- -----------
Telecommunications 0.28%
140,000 Total Access Communications............................. 1,007,288 721,000
----------- -----------
Transportation - Air 1.02%
300,000 Singapore Airlines...................................... 2,826,184 2,653,766
----------- -----------
TOTAL SINGAPORE......................................... 29,747,952 27,925,155
----------- -----------
SRI LANKA 0.03%
Financial Services 0.03%
20,000 Development Finance Corporation of Ceylon............... 120,769 92,905
----------- -----------
TOTAL SRI LANKA......................................... 120,769 92,905
----------- -----------
TAIWAN 10.40%
Banking 0.42%
253,500 First Bank.............................................. 1,050,068 1,086,036
----------- -----------
Chemicals 1.68%
1,750,000 Formosa Plastic......................................... 4,418,728 4,365,510
----------- -----------
Data Processing 1.90%
1,942,464 Acer Inc.*.............................................. 2,727,810 4,950,966
----------- -----------
Electrical & Electronics 0.61%
270,000 Hon Hai Precision Industry.............................. 790,492 1,581,345
----------- -----------
</TABLE>
13
<PAGE>
Schedule of Investments (continued) The Asia Tigers Fund, Inc.
April 30, 1997 (Unaudited)
<TABLE>
<CAPTION>
Number Percent
of Shares Security of Holdings Cost Value
- - ----------------------------------------------------------------------------------------------------------
C0MMON STOCKS (continued)
<S> <C> <C> <C> <C>
TAIWAN (continued)
Electronic Components & Instruments 0.84%
900,000 United Micro Electronic................................. $ 1,292,406 $ 2,180,043
----------- -----------
Financial Services 0.96%
600,000 China Developement**.................................... 2,415,856 2,494,577
----------- -----------
Food & Household Products 0.34%
500,000 President Enterprises................................... 807,131 885,756
----------- -----------
Insurance 1.84%
800,000 Cathay Life Insurance................................... 4,903,335 4,772,234
----------- -----------
Metals - Steel 0.53%
1,200,000 China Steel.............................................. 1,291,156 1,284,165
3,750 China Steel - GDS....................................... 72,256 84,281
----------- -----------
1,363,412 1,368,446
----------- -----------
Real Estate 1.28%
1,300,000 Cathay Construction...................................... 2,250,729 2,279,465
1,000,000 Pacific Construction .................................... 873,965 1,059,291
----------- -----------
3,124,694 3,338,756
----------- -----------
TOTAL TAIWAN............................................. 22,893,932 27,023,669
----------- -----------
THAILAND 3.01%
Banking 1.43%
170,000 Bangkok Bank............................................. 1,917,665 1,574,887
360,000 Industry Finance......................................... 1,521,801 964,686
195,000 Thai Farmer's Bank...................................... 1,864,849 1,179,443
----------- -----------
5,304,315 3,719,016
----------- -----------
Building Materials & Components 0.59%
57,000 Siam Cement............................................. 2,938,511 1,527,419
----------- -----------
Energy Sources 0.44%
90,000 PTT Exploration......................................... 1,191,785 1,150,732
----------- -----------
Financial Services 0.14%
300,000 Dhana Siam Finance & Securities......................... 1,034,089 353,144
----------- -----------
</TABLE>
14
<PAGE>
Schedule of Investments (continued) The Asia Tigers Fund, Inc.
April 30, 1997 (Unaudited)
<TABLE>
<CAPTION>
Number Percent
of Shares Security of Holdings Cost Value
- - ----------------------------------------------------------------------------------------------------------
C0MMON STOCKS (continued)
<S> <C> <C> <C> <C>
THAILAND (continued)
Utilities Electric & Gas 0.41%
400,000 Electricity Generating.................................. $ 1,127,800 $ 1,071,873
----------- -----------
TOTAL THAILAND.......................................... 11,596,500 7,822,184
----------- -----------
TOTAL COMMON STOCKS...................................... 219,824,400 229,343,369
----------- -----------
</TABLE>
<TABLE>
<CAPTION>
Par Value Percent
($000) Security of Holdings Cost Value
- - ----------------------------------------------------------------------------------------------------------
==========================================================================================================
CONVERTIBLE BONDS 0.69%
==========================================================================================================
<S> <C> <C> <C> <C>
MALAYSIA 0.69%
Telecommunications 0.69%
2,000 2 Telekom Malaysia 4.00%, 10/03/04..................... 2,111,875 1,790,000
---------- -----------
TOTAL CONVERTIBLE BONDS................................. 2,111,875 1,790,000
---------- -----------
</TABLE>
15
<PAGE>
<TABLE>
<CAPTION>
Par Value Percent
($000) Security of Holdings Cost Value
- - ----------------------------------------------------------------------------------------------------------
==========================================================================================================
SHORT-TERM OBLIGATIONS 11.02%
==========================================================================================================
<S> <C> <C> <C> <C>
TIME DEPOSIT 3.46%
9,000 Chase Manhattan Bank London
Time Deposit 5.000%, 05/01/97........................... $ 9,000,000 $ 9,000,000
------------ ------------
TOTAL TIME DEPOSIT...................................... 9,000,000 9,000,000
------------ ------------
UNITED STATES TREASURY BILLS 7.56%
4,000 U.S. Treasury Bill 5.11%, 07/03/97...................... 3,964,370 3,965,049
8,000 U.S. Treasury Bill 5.08%, 08/07/97...................... 7,885,966 7,887,030
8,000 U.S. Treasury Bill 5.45%, 10/30/97...................... 7,786,656 7,784,263
------------ ------------
TOTAL U.S. TREASURY BILLS................................ 19,636,992 19,636,342
------------ ------------
TOTAL SHORT-TERM OBLIGATIONS............................. 28,636,992 28,636,342
------------ ------------
TOTAL INVESTMENTS***..............................100.00% $250,573,267 $259,769,711
============ ============
</TABLE>
- - ----------
Footnotes and Abbreviations:
ADR- American Depository Receipts
GDR- Global Depository Receipts
GDS- Global Depository Securities
* Non-income producing security
** Passive Foreign Investment Company
***Aggregate cost for Federal income tax purposes is $251,159,806
The aggregate gross unrealized appreciation (depreciation) for all
securities is as follows:
Excess of value over tax cost $29,635,600
Excess of tax cost over value (21,025,695)
-----------
$8,609,905
===========
See accompanying notes to financial statements.
16
<PAGE>
<TABLE>
<CAPTION>
Statement of Assets and Liabilities The Asia Tigers Fund, Inc.
April 30, 1997 (Unaudited)
Assets
<S> <C>
Investments, at value (Cost $250,573,267) ...................................................... $ 259,769,711
Cash (including $3,208,130 of foreign currency holdings with a cost of $3,200,468) ............. 3,849,968
Collateral for securities loaned, at value ..................................................... 15,794,706
Receivables:
Dividends ................................................................................... 443,406
Interest .................................................................................... 12,735
Securities sold ............................................................................. 7,721,985
Unamortized organization costs ................................................................. 38,526
Prepaid expenses ............................................................................... 64,634
-------------
Total Assets ............................................................................... 287,695,671
-------------
Liabilities
Payable for securities purchased ............................................................... 9,322,735
Payable upon return of securities loaned ....................................................... 15,794,706
Due to Investment Manager ...................................................................... 215,886
Due to Administrator ........................................................................... 43,177
Accrued expenses ............................................................................... 407,631
Accrued foreign taxes on capital gains ......................................................... 199,905
-------------
Total Liabilities .......................................................................... 25,984,040
-------------
Net Assets ..................................................................................... $ 261,711,631
=============
NET ASSET VALUE PER SHARE ($261,711,631/20,514,984) ............................................ $ 12.76
=============
Net assets consist of:
Capital stock, $0.001 par value; 20,514,984 shares issued
and outstanding (100,000,000 shares authorized) ............................................ $ 20,515
Paid-in capital ................................................................................ 286,511,528
Distributions in excess of net investment income ............................................... (2,065)
Accumulated net realized loss on investments and
foreign currency related transactions ...................................................... (34,023,527)
Net unrealized appreciation in value of investments and on translation of
other assets and liabilities denominated in foreign currencies ............................. 9,205,180
-------------
$ 261,711,631
=============
</TABLE>
See accompanying notes to financial statements.
17
<PAGE>
<TABLE>
<CAPTION>
Statement of Operations The Asia Tigers Fund, Inc.
For the Six Months Ended April 30, 1997 (Unaudited)
Investment Income
<S> <C> <C>
Dividends (Net of taxes withheld of $196,889) ....................................................... $1,753,404
Interest ............................................................................................ 704,439
----------
Total Investment Income ........................................................................ 2,457,843
----------
Expenses
Management fees .......................................................................... 1,340,868
Administration fees ...................................................................... 268,173
Custodian fees ........................................................................... 220,672
Insurance ................................................................................ 70,579
Legal fees ............................................................................... 69,424
Transfer agent fees ...................................................................... 42,151
Audit fees ............................................................................... 29,753
Printing ................................................................................. 17,356
NYSE fees ................................................................................ 16,022
Amortization of organizational costs ..................................................... 12,064
Directors' fees .......................................................................... 11,604
Interest expense ......................................................................... 500
Miscellaneous ............................................................................ 2,480
Total expenses ........................................................................ 2,101,646
----------
Net Investment Income ................................................................. 356,197
----------
Net Realized and Unrealized Gain (Loss) On Investments,
Foreign Currency Holdings and Translation of Other Assets
and Liabilities Denominated In Foreign Currencies
Net realized gain (loss) on:
Security transactions (Net of taxes withheld of $202,228) ........................................ 3,110,737
Foreign currency related transactions ............................................................ (173,703
----------
2,937,034
Net change in unrealized appreciation in value of investments, foreign currency
holdings and translation of other assets and liabilities denominated in foreign
currencies .......................................................................................... 2,839,679
Net realized and unrealized gain on investments, foreign currency holdings and translation
of other assets and liabilities denominated in foreign currencies ................................... 5,776,713
----------
Net increase in net assets resulting from operations ................................................ $ 6,132,910
==========
</TABLE>
See accompanying notes to financial statements.
18
<PAGE>
<TABLE>
<CAPTION>
Statement of Changes in Net Assets The Asia Tigers Fund, Inc.
For the Six Months
Ended For the Year
April 30, 1997 Ended
(Unaudited) October 31, 1996
----------- ----------------
Increase (Decrease) In Net Assets
Operations
<S> <C> <C>
Net investment income ............................................................ $ 356,197 $ 1,084,483
Net realized gain (loss) on investments and foreign currency related
transactions .................................................................. 2,937,034 (2,266,009)
Net change in unrealized appreciation in value of investments,
foreign currency holdings and translation of other assets
and liabilities denominated in foreign currencies ............................. 2,839,679 11,276,163
------------- -------------
Net increase in net assets resulting from operations ................... 6,132,910 10,094,637
------------- -------------
Distributions to shareholders from
Net investment income ($0.03 and $0.08 per share, respectively) .................. (615,450) (1,661,714)
------------- -------------
Net decrease in net assets from distributions .......................... (615,450) (1,661,714)
------------- -------------
Total increase in net assets ..................................................... 5,517,460 8,432,923
------------- -------------
Net Assets
Beginning of period .............................................................. 256,194,171 247,761,248
------------- -------------
End of period (including undistributed net investment income of
$257,188 as of October 31, 1996) .............................................. $ 261,711,631 $ 256,194,171
============= =============
</TABLE>
See accompanying notes to financial statements.
19
<PAGE>
<TABLE>
<CAPTION>
Financial Highlights The Asia Tigers Fund, Inc.
For a Share Outstanding throughout Each Period
For the Period
November 29, 1993
For the (Commencement
Period Ended For the For the of Operations)
April 30, 1997 Year Ended Year Ended Through
(Unaudited) October 31, 1996 October 31, 1995 October 31, 1994
-------------- ---------------- ---------------- ----------------
<S> <C> <C> <C> <C>
Per Share Operating Performance
Net asset value, beginning of period ............ $ 12.49 $ 12.08 $ 13.89 $ 13.97*
------------- ------------- ----------- -----------
Net investment income ........................... 0.02 0.05 0.09 0.05
Net realized and unrealized gains (losses)
on investments, foreign currency
holdings, and translation of other
assets and liabilities denominated
in foreign currencies ......................... 0.28 0.44 (1.67) (0.11)
------------- ------------- ----------- -----------
Net increase (decrease) from investment
operations .................................... 0.30 0.49 (1.58) (0.06)
------------- ------------- ----------- -----------
Less Distributions:
Dividends from net investment income .......... (0.03) (0.08) (0.06) (0.02)
Distributions from net realized gains ......... -- -- (0.17) --
------------- ------------- ----------- -----------
Total dividends and distributions ............... (0.03) (0.08) (0.23) (0.02)
------------- ------------- ----------- -----------
Net asset value, end of period .................. $ 12.76 $ 12.49 $ 12.08 $ 13.89
============= ============= =========== ===========
Per share market value, end of period ........... $ 10.38 $ 10.38 $ 10.38 $ 12.38
Total Investment Return Based on
Market Value ** ................................. 0.26% 0.59% (14.17)% (11.65)%
Ratios/Supplemental Data:
Net assets, end of period (in 000s) ............ $ 261,712 $ 256,194 $ 247,761 $ 284,910
Ratios of expenses to average net assets ........ 1.57%*** 1.60% 1.65% 1.60%***
Ratios of net investment income to
average net assets ............................ 0.27%*** 0.41% 0.71% 0.38%***
Portfolio turnover .............................. 51.31% 91.57% 77.88% 45.51%
Average commission rate paid+ ................... $ 0.0097 $ 0.0084 N/A N/A
</TABLE>
* Initial public offering price $15.00 per share less underwriting discount of
$0.98 per share and offering costs of $0.05 per share.
**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 underwriting discount 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.
***Annualized.
+Computed by dividing the total amount of brokerage commissions paid by the
total number of shares of investment securities purchased and sold during the
period for which commissions were charged as required by the SEC for fiscal
years beginning on or after September 1, 1995.
See accompanying notes to financial statements.
20
<PAGE>
Notes to Financial Statements The Asia Tigers Fund, Inc.
April 30, 1997 (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 Barclays Global Investors International, Inc.
("BGI"), formerly known as BZW Investment Management Inc. At April 30, 1997,
Oppenheimer and BGI each owned 3,567 shares of the Fund's Capital Stock.
The preparation of financial statements in accordance with generally accepted
accounting principles requires management to make estimates and assumptions that
affect the reported amounts and disclosures in the financial statements. Actual
results could differ from those estimates.
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 generally 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.
Securities for which sales prices and bid and asked quotations are not available
on the date of determination may be valued at the most recently available prices
or quotations under policies adopted by the Board of Directors. Investments in
short-term debt securities having a maturity of 60 days or less are valued at
amortized cost which approximates market value. 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 continue 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, 1996, the Fund had a net capital loss carryover of $36,125,028,
which is available to offset future net realized gains on securities
transactions to the extent provided for in the Internal Revenue Code.
21
<PAGE>
Notes to Financial Statements (continued) The Asia Tigers Fund, Inc.
April 30, 1997 (Unaudited)
Of the aggregate capital losses, $34,278,141 will expire in the year 2003 and
$1,846,887 will expire in the year 2004.
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 rates of exchange on the valuation date; 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 equity
securities. The Fund reports certain realized gains and losses on foreign
currency related transactions as components of realized gains and losses for
financial reporting purposes, whereas such gains and losses are treated as
ordinary income or losses 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.
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 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.
22
<PAGE>
Notes to Financial Statements (continued) The Asia Tigers Fund,
Inc. April 30, 1997 (Unaudited)
During the year ended October 31, 1996, the Fund reclassified $370,123 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.
Loans of Portfolio Securities. The Fund, through its custodian as lending agent,
lends portfolio securities from time to time. When the Fund lends its
securities, it continues to earn dividends on such securities loaned. The cash
collateral received from borrower is required to be at least equal at all times
to 105 percent of the market value of the securities (outside the U.S.) loaned,
which are marked-to-market daily. Such collateral is invested in short term
instruments by the lending agent and any interest income in excess of agency
fees and of predetermined rebate to the borrowers is retained by the Fund.
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 with 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 BGI 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, 1997, fees paid to the Investment Manager
amounted to $1,340,868, of which the Investment Manager informed the Fund it
paid $670,434 to the Investment Adviser.
On February 14, 1997, Oppenheimer Group, Inc., the ultimate parent company of
the Investment Manager, entered into an agreement pursuant to which the stock of
the Investment Manager would be sold to PIMCO Advisers, L.P., and its
affiliates. The closing of the transaction is subject to the receipt of certain
regulatory and other approvals. The transaction involves the Investment
Manager's advisory arrangements with 8 of the 12 registered investment companies
for which it provides investment advisory services, but does not involve the
Fund. Prior to consummation of the transaction, the Investment Manager will
transfer its rights and obligations under the Management Agreement and the
Advisory Agreement to an affiliated advisory entity. The personnel of the
Investment Manager who currently provide services to the Fund would continue to
provide those services through the affiliated advisory entity.
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
23
<PAGE>
Notes to Financial Statements (continued) The Asia Tigers Fund, Inc.
April 30, 1997 (Unaudited)
rate of 0.20% of the value of the Fund's average weekly net assets. For the six
months ended April 30, 1997, these fees amounted to $268,173.
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
$126,150,611 and $137,215,506 respectively, for the six months ended April 30,
1997.
NOTE D: Portfolio Securities Loaned
At April 30, 1997, the market value of the securities loaned and amount of
collateral received with respect to such loans were $15,307,642 and $15,794,706,
respectively. For the six months ended April 30, 1997, net earnings to the Fund
from investment of such collateral was $10,058, after deducting borrowers'
rebate and agency fees of $148,695 and $10,104 respectively.
NOTE E: Subsequent Event
A dividend of $205,150 or $0.01 per share will be payable on July 3, 1997 to
shareholders of record on June 25, 1997.
NOTE F: Other
At April 30, 1997, 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 certain companies in India and
Indonesia valued at approximately $4,476,210 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 these countries, and such transfers can take a
year or longer. Securities regulations in these countries normally preclude the
Fund from selling such securities until the completion of the registration
process.
24
<PAGE>
Results of the Annual Shareholders Meeting The Asia Tigers Fund, Inc.
The Fund held its annual shareholders meeting on February 21, 1997. 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, 1997.
The following tables provide information concerning the matters voted on at the
meeting:
I. Election of Directors
Nominee Votes For Votes Abstained
- - ------- --------- ---------------
Jeswald W. Salacuse 13,397,263 476,522
Robert A. Blum 13,406,606 467,179
II. Ratification of Price Waterhouse LLP as the
Independent Accountants of the Fund
Votes For Votes Against Votes Abstained
- - --------- ------------- ---------------
13,583,757 191,062 143,966
25
<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
26
<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.
27
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The Asia Tigers Fund, Inc.
Investment Advisor:
Barclays Global Investors
International, Inc.
Investment Manager:
Advantage Advisers, Inc.
Administrator:
Oppenheimer & Co., Inc.
Sub-Administrator:
PNC Bank, N.A.
Transfer Agent:
PNC Bank, National Association
Custodian:
The Chase Manhattan Bank, N.A.
The Asia Tigers Fund, Inc.
Semiannual Report
April 30, 1997
Advantage Advisers, Inc.
