SEMI-ANNUAL REPORT
THOMAS WHITE WORLD FUND
Thomas White World Fund
Officers and Trustees Investment Advisor and
Thomas S. White Jr. Administrator
Chairman of the Board and President Lord Asset Management Inc.
Jill F. Almeida 440 S. LaSalle Street, Suite 3900
Trustee Chicago. Illinois 60605-1028
Philip R. Haag Custodian
Trustee State Street Bank and Trust Co.
Nicholas G. Manos P.O. Box 1631
Trustee Boston, Massachusetts 02101
Edward E. Mack III Legal Counsel
Trustee Dechert, Price & Rhoads
Michael R. Miller 1500 K Street, N.W.
Trustee Washington, DC 20005
John N. Venson, D.P.M. Independent Accountants
Trustee McGladrey & Pullen LLP
Virge J. Trotter III 555 Fifth Avenue
Vice-President and Secretary New York, New York 10017
Brandon S. Joel Transfer Agent
Treasurer Firstar Trust Company
Roberta J. Johnson 615 East Michigan Street
Treasurer Milwaukee, Wisconsin 53202
Douglas M. Jackman
Vice-President
The Thomas White World Fund
Mr. White, the Fund's President and Portfolio
Manager, has been an active professional investor and
analyst of common stocks since joining Goldman Sachs
in 1966. His interests have always been global. As a
boy he grew up around the world, living in Naples,
Manila and ten other communities before graduating
from Duke University in 1965. Over his twenty-nine
years as an investment manager, he has been with
Lehman Brothers, Blyth Eastman Dillon and most
recently, fourteen years with Morgan Stanley. At
Morgan Stanley, he was a Managing Director and
Chief Investment Officer for the firm's valuation-oriented
equity investing.
Together with his team of Lord Asset Management
analysts, Mr. White manages a number of global and
country-specific investment portfolios. The group also
produces monthly publications which value global
securities. These are purchased by investment
organizations worldwide.
The Following Letter Was Written
By Mr. White, The Fund's President:
June 24, 1996
Dear Client & Shareholder:
Our goal is to assist you in becoming a sccessful long-term investor. We
use the word assist, because your attitude, interest level, and decisions will
also heavily influence your success. You can participate in the following ways:
First, be as serious and thorough in deciding on your investment manager as
you would in selecting a business partner, a lawyer or a surgeon.
Second, spend the years necessary to develop a trusted relationship with an
advisor. Why do you need an advisor? The simple answer is that they are
experts in investing. But what makes a "close" advisor is your confidence in
his judgement. The stock market is counter-intuitive; one needs an experienced
guide to help you develop and maintain a correct perspective.
Third, you should select an advisor that has a business-like investment
approach. A manager should be able to describe his investment philosophy in
plain English. Your portfolio should consistently reflect that strategy. Long-
term, above average returns are, of courese, a necessary condition for
maintaining your confidence, but so is understanding why the manager is
outperforming.
Fourth, enjoy investing! There is no subject matter that draws more
interest than the stock market, especially the global markets.
Our objective is to build your respect over time as your trusted advisor
and manage your assets in the fund well into the future. We take great pleasure
and pride in the confidence our long-term clients have in our organization. We
have designed the Thomas White World Fund to attract and serve the same prudent,
long-term investor.
The topics in this letter will emphasize areas that we feel are important to
your investement success. In our first report we stressed our investment
philosophy and the advantages of investing globally. The second report
suggested you should maintain a written statement of long-term ivestment goals.
Historical equity and bond returns should be used as a basis for setting
realistic expectations and developing your investment strategy. Our third
report discussed our view that world markets will be greatly influenced over the
next twenty years by the transformation, through free enterprise and democracy,
of the Asian countries into fully developed, stable nations. We will be glad to
send past letters to new shareholders who would find them of interest.
Our objective is to assist you in becoming a successful, long-term investor.
On behalf of myself and our team of six regional portfolio managers in our
organization, we look forward to helping you reach this goal.
Thomas S. White, Jr.
President and Portfolio Manager
<TABLE>
THE WORLD HAS CHANGED. A GLOBAL
PORTFOLIO IS NOW BOTH LOGICAL
AND INCREASINGLY INVITING.
<S> <C> <C> <C> <C>
1960 1970 1980 1996
US & Canada 75% 70% 40% 45%
Europe 22% 22% 23% 25%
Asia Pacific 3% 8% 37% 30%
100% 100% 100% 100%
Global Market
Value (Billions) $500 $2,000 $9,200 $10,800
</TABLE>
<TABLE>
The World Equity Market and its Major Regonal Components
Jan 1, 1970-Dec 31, 1994 Returns in US Dollars with Regional
Performance Ranked #1 to #4
<S> <C> <C> <C> <C> <C>
Five-Year World Europe USA Japan Pacific
Periods Ex-Japan
1970-1974 -1.3% -0.9%(#2) -3.4%(#1) 16.0%(#1) -6.2%(#4)
1975-1979 16.0% 18.9%(#2) 13.3%(#3) 18.8%(#3) 27.5%(#1)
1980-1984 12.4% 6.1%(#3) 14.5%(#1) 17.0%(#1) 4.1%(#4)
1985-1989 28.0% 32.3%(#2) 19.8%(#1) 41.4%(#1) 22.4%(#3)
1990-1994 4.2% 7.0%(#3) 9.2%(#4) -3.4%(#4) 15.3%(#1)
1995 21.3% 22.5%(#2) 38.2%(#1) 0.8%(#4) 14.0%(#3)
US Dollar Return 11.8% 12.5% 11.3% 16.4% 12.0%
Return Components:
Currency Return +1.2% +0.8% 0.0% +5.1% -0.7%
Local Mkt Return 10.4% 11.6% 11.3% 10.8% 12.8%
</TABLE>
YOUR FUND'S OBJECTIVE
The Thomas White World Fund seeks long-term capital growth through a
flexible policy of investing in stocks and debt obligations of companies and
governments of any nation, including underdeveloped countries.
YOUR FUND'S INVESTMENT PHILOSOPHY
I. Superior returns can come from properly harnessing the
high potential inherent within undervalued global companies.
II. A value-oriented investment style can capture this potential
while maintaining a lower risk profile and healthy dividend
income.
III. We emphasize owning bargain-priced companies with solid cash
flows, attractive growth potential and appropriately conservative
balance sheets.
IV. Currency projections are not a stong factor in our valuations.
Management Discussion June 24, 1996
This publication represents the semi-annual report report of the
Thomas White World Fund. The period started on October 31, 1995
and ended on April 30, 1995. Our Fund is about to celebrate its
second birthday on June 28th. As of this writing, we have $38.6 million of
shareholder assets in the Fund. We at the Firm are appreciative and thankful
for your confidence in our organization.
On April 30, the Fund's portfolio of equities included
166 companies from eighteen countries around the world.
These represent 93.0% of the Fund's total value, with the rest
in cash equivalents or other assets.
The Fund's performance versus the Morgan Stanley World
Index is presented below. Current price and return data now
appear daily in most domestic newspapers. This can be found
in the Mutual Fund Section listed alphabetically under the
"T"s as Thom White. Many papers also regularly show the
year-to-date 1996 performance. We are pleased with the
portfolio's progress this year. Returns have been competitive,
both in an absolute sense and in comparison to other global
mutual funds.
<TABLE>
<S> <C> <C>
Performance Period T. White MSCI
Ending April 30, 1996 World World
Since Inception (6-28-94) 28.39% 30.70%
Last Twelve Months 18.84% 18.70%
Year-To-Date 7.14% 6.50%
</TABLE>
Portfolio Strategy and Review
The Fund's performance is the product of our investment philosophy and
portfolio strategy. Our philosophy is that undervalued companies produce
superior returns. Accordingly, our efforts focus on appraising companies using
our thorough valuation studies. Our stock selection strategy is to buy those
companies that sell at the greatest discount to their valuations and sell them
when they are fairly priced. Other portfolio decisions include the selection
of country exposures.
We feel our greatest strength is accurate stock selection. We have
established methods of valuing stocks in each developed country throughout the
world. We believe broad country diversification provides an ideal environment
for our stock selection skills. Diversified country exposure assures accurate
stock selection will not be eclipsed by a heavy weight in a poorly performing
country. Accordingly, the Fund's portfolio now owns common stocks in eighteen
major countries.
Over the last twelve months to April 30, the Fund has mildly outperformed
its market benchmark. the Morgan Stanley Capital International World Index. The
three large regions in the index are Europe (25%), North America (45%) and the
Pacific (30%). Your manager prefers the Fund's portfolio to be more balanced
between these three regions (35.5%, 38.6% and 25.9%). Our choice of these
regional weightings was, in fact, a drag on the Fund's trailing annual
performance. This was because the United States, where we were slightly
underweighted, had higher returns than the other two regions. Fortunately, our
strong stock selection in each region, more than offset this country-weight
shortfall. The final result was a 18.84% return over the past twelve months
versus 18.70% for the MSCI World Index. Our strategy is to continue to maintain
balanced regional weightings, as opposed to putting 45% of the portfolio in the
United States.
The purchase and sales of stocks in the Fund over the last twelve months has
been the product of the manager's monthly investment process. The process
begins with the valuation of each company. Stocks that have reached fair value
are then sold and replaced with currently undervalued securities. The process
involves our entire organization, from the research department to portfolio
management to securities and currency trading. The portfolio's turnover rate of
37% over the last year reflected ongoing, small monthly changes of stock
holdings. This regular process allows the Fund to benefit from our most current
research conclusions.
<TABLE>
The Thomas White World Fund
Geographic distribution on April 30, 1996
Based on Long-Term Securities
<S> <C>
Continental Europe 25.7%
United Kingdom 9.8%
North America 37.9%
Latin America 0.7%
Japan 14.3%
Far East 6.7%
Australia and New 4.9%
Zealand
</TABLE>
<TABLE>
The Thomas White World Fund
Top Ten Holdings on April 30, 1996
Based on Total Net Assets
<S> <C>
Company % of Total
Industry, Country Net Assets
ING Groep 1.5%
Insurance, Netherlands
Jardine Strategic Holdings 1.5%
Industrial, Hong Kong
New World Development 1.4%
Industrial, Hong Kong
Rhone-Poulenc Rorer 1.2%
Healthcare, United States
Garan, Inc. 1.2%
Consumer Retail, United States
Hitachi Ltd ADR 1.1%
Technology, Japan
Eridania Beghin-Say 1.1%
Staples, France
ABN-AMRO Holdings 1.0%
Banking, Netherlands
National Australia Bank 1.0%
Banking, Australia
Fuji Photo Film 1.0%
Consumer Retail, Japan
</TABLE>
Performance Summary
This Fund's performance period since inception was one
year, ten months and two days in length. Over this period the Fund's return,
with dividends reinvested, was 28.39%. In the same period the MSCI World
Index, with net dividends, returned 30.70%. the graph below shows the monthly
value of $10,000 initially invested in the Fund and the MSCI World Index.
<TABLE>
Pursuant to Rule 304(a) of Regulation S-T, the following table replaces
a graph showing growth of an initial $10,000 investment, assuming all
dividends reinvested, and the MSCI World Index (see footnote 1). The return
since inception(June 28, 1994) was 28.4% for the Fund and 30.7% for the World
Index (see footnote 2). The one year return was 18.8%. The average total
return since inception was 14.5%.
<S> <C> <C>
Fund MSCI World
Composite Index
6/30/94 $10,010 $10,028
7/31/94 10,440 10,217
8/31/94 10,690 10,522
9/30/94 10,380 10,243
10/31/94 10,500 10,532
11/30/94 10,130 10,073
12/31/94 10,067 10,168
1/31/95 9,966 10,012
2/28/95 10,259 10,156
3/31/95 10,531 10,643
4/30/95 10,803 11,011
5/31/95 11,035 11,103
6/30/95 11,106 11,097
7/31/95 11,550 11,650
8/31/95 11,389 11,388
9/30/95 11,570 11,717
10/31/95 11,409 11,529
11/30/95 11,621 11,927
12/31/95 11,983 12,272
1/31/96 12,357 12,493
2/29/96 12,432 12,567
3/31/96 12,507 12,773
4/30/96 12,839 13,070
Note: 1. MSCI World Index is with net dividends
2. Past performance should not be construed as a guarantee of
future performance.
</TABLE>
Dividend Information
The Fund pays dividends annually. On December 27, 1994, the Board of
Trustees declared a dividend of $0.086522 per share from net investment income
and a distribution from net realized gain of $0.000804 per share. These were
paid on Decemeber 27, 1994 to shareholders of record on December 27, 1994.
On December 12, 1995, the Board of Trustees declared a dividend of
$0.194880 per share from net investment income and a distribution from net
realized long-term gain of $0.136889 and $0.346858 from net realized short-term
gains per share. These were paid on December 29, 1995 to shareholders of record
on December 26, 1995.
In accordance with current Internal Revenue Service requirements, these
distributions comprised substantially all earnings of the Fund from net
investment income through December 31, 1995, and net realized gains through the
fiscal year ending October 31, 1995.
Information regarding the taxability of the above-mentioned
dividends and distributions were sent to shareholders following
the close of the calendar year.
<TABLE>
THOMAS WHITE WORLD FUND
Portfolio of Investments
Issue Industry Shares Value
<S> <C> <C> <C> <C>
COMMON STOCKS: 93.0%
AUSTRALIA: 4.2%
Email Ltd. Industrial 73,900 $207,881
Goodman Fielder Ltd Consumer Staples 236,300 234,599
National Australia Bank Ltd. Banking 20,760 186,807
National Australia Bank Ltd. ADR Banking 4,300 193,500
Pacific Dunlop Ltd Industrial 93,700 228,872
Rothmans Holdings Ltd. Consumer Staples 56,000 272,697
Santos Ltd. Energy 79,500 284,395
1,608,746
BELGIUM: 1.1%
G.I.B. Holdings Consumer Staples 4,300 190,413
Tractabel Invest Inter BV Utility 600 244,441
434,854
CANADA: 2.3%
BCE Inc. Communication 4,900 192,810
Canfor Corporation Building 11,200 115,218
Methanex Corporation * Chemicals 16,300 128,755
Royal Bank of Canada Banking 6,200 146,925
Quebecor Incorporated Class B Services 9,300 154,100
Transalta Corporation Utilities 12,900 137,446
875,254
FINLAND: 1.8%
Huhtamaki OY Consumer Staples 6,500 214,659
Kesko OY Services 16,000 181,304
Metsa-Serla OY Forest & Paper 41,500 302,369
698,369
FRANCE: 4.9%
Alcatel Alsthom * Industrial 2,000 188,099
Bouygues Building 2,000 203,193
CGIP Industrial 1,100 245,864
Eridania Beghin-Say Consumer Staples 2,600 424,151
Peugot SA Consumer Durables 1,300 181,635
Societe Generale Banking 2,100 243,832
Saint Louis SA Services 900 262,119
Union Assurance de Paris Insurance 7,500 162,410
1,911,303
GERMANY: 3.4%
AGIV AG Industrial 12,700 270,443
AVA Allgemeine Handels Consumer Retail 500 123,457
Bayer AG Chemicals 700 225,423
Douglas Holding AG Services 6,900 228,513
Hoechst AG Chemicals 800 269,436
Merck KGAA Chemicals 5,700 212,414
1,329,686
HONG KONG: 5.0%
Amoy Properties Financial Diversified 149,500 168,098
Hopewell Holdings Building 337,000 206,008
Jardine Strategic Holdings Services 177,000 580,560
New World Development Co. Industrial 124,000 556,103
New World Infrastructure Building 206 458
Semi-Tech (Global) Industrial 91,806 135,855
Wheelock & Company Consumer Retail 140,000 285,880
1,932,962
ITALY: 2.7%
Banca Commerciale Italiana SPA Banking 93,600 209,449
Benetton SPA Consumer Retail 19,500 234,119
Instituto Mobilare Italiano SPA Banking 34,300 271,711
Stet Risp NON CV Communication 130,300 340,839
1,056,118
JAPAN: 13.2%
Aoyama Trading Consumer Retail 7,000 219,239
Bank of Iwate Banking 1,700 99,529
Bank of Kinki, Ltd. Banking 43,000 253,795
Dainippon Ink & Chemicals, Inc. Chemicals 20,000 108,334
East Japan Railway Transportation 22 117,074
Fuji Photo Film Company Consumer Retail 12,000 372,412
Hisamitsu Pharmaceutical
Company Inc. Healthcare 10,000 99,957
Hitachi Ltd. ADR Technology 4,100 441,263
Hitachi Chemical Chemicals 14,000 154,601
Hokkaido Electric Power Utilities 3,000 71,684
Ito-Yokado Consumer Retail 4,000 234,947
Juroku Bank Banking 11,000 63,144
Kyushu Electric Power Co., Inc. Utilities 3,000 74,254
Marudai Food Company Consumer Staples 38,000 302,062
Matsushita Electric Industries Co. Consumer Durables 6,000 105,669
Nagase Industrial 16,000 158,408
Nichimen Corporation Industrial 35,000 164,931
Nintendo Company Consumer Retail 4,000 304,631
San-In-Godo Bank Banking 7,000 59,308
Sanki Engineering Capital Goods 16,000 223,904
Sekisui House Building 19,000 235,136
Shiga Bank Banking 41,000 265,020
Shinmaywa Industries, Ltd. Consumer Durables 21,000 203,912
Sintokogio, Ltd. Capital Goods 21,000 189,918
Shionogi & Company Healthcare 10,000 91,770
Shiseido Company Consumer Staples 7,000 87,962
Toyoda Gosei Company Consumer Durables 27,000 228,760
Yamanouchi Pharmanceuticals Co. Health Care 9,000 212,480
5,144,104
MALYASIA: 1.3%
Aokam Perdana Berhad Building 43,000 87,161
Oriental Holdings Berhad Services 22,000 134,222
Perlis Plantation Berhad Consumer Staples 35,000 147,508
Rashid Hussain Berhad Financial Diversified 35,000 123,627
492,518
MEXICO: 0.7%
Telefonos de Mexico Series L ADR Communication 7,400 251,600
251,600
NETHERLANDS: 5.0%
ABN-AMRO Holdings NV Banking 7,500 388,774
Aegon Insurance 4,750 226,514
DSM NV Chemicals 2,700 276,130
Hoogovens Metals 6,100 229,933
ING Groep NV Insurance 7,676 593,481
Philips Electronics NV Industrial 5,700 201,531
1,916,363
NEW ZEALAND: 0.4%
Brierley Investments Ltd. Industrial 89,600 84,475
Fletcher Challenge Building Building 5,800 13,771
Fletcher Challenge Energy Utility 5,800 12,454
Fletcher Challenge Paper Forest & Paper 11,600 23,949
Fletcher Forest Division Forest & Paper 3,291 4,258
138,907
SPAIN: 2.3%
Argentaria Corp. Bancaria de Espana Banking 6,200 250,608
Iberdrola SA Utility 35,600 347,869
U Fenosa Utility 45,900 247,152
872,629
SWEDEN: 1.4%
Electrolux B Consumer Durables 5,100 256,772
Volvo B Consumer Durables 11,800 270,124
526,896
SWITZERLAND: 1.3%
Sulzer AG Capital Goods 500 322,191
Winterthur Schweiz Insurance 300 188,240
510,431
UNITED KINGDOM: 9.1%
Abbey National PLC Banking 20,700 176,666
Arjo Wiggins Appleton PLC Forest & Paper 61,800 170,710
BAA PLC Services 17,600 144,264
Bass PLC Consumer Staples 15,400 180,560
British Petroleum Co. Energy 18,650 167,429
British Steel Metals 66,200 197,766
British Telecom Communication 32,400 177,293
Burton Group PLC Consumer Retail 106,600 251,246
Coats Viyella Consumer Retail 42,600 121,508
General Accident Insurance 17,400 165,481
Harrison & Crosfield PLC Industrial 89,300 197,737
Hillsdown Holdings Consumer Staples 61,800 166,996
Inchcape Services 43,200 189,372
Ladbroke Group Services 62,800 183,841
National Westminster Bank PLC Banking 18,300 168,270
NFC PLC Transportation 50,000 129,105
Severn Trent Utility 13,500 121,094
Southwest Water Utility 22,300 228,653
Tate & Lyle Consumer Staples 23,900 172,761
T & N PLC Consumer Durables 79,100 210,778
3,521,530
UNITED STATES: 32.9%
Amerada Hess Corporation Energy 4,300 243,488
American National Insurance Co. Insurance 3,400 223,550
Archer Daniels Midland Corporation Consumer Staples 17,935 338,523
Bank of Boston Banking 5,100 246,713
Baxter International Health Care 5,600 247,800
Boatmens Bancshares Incorporated Banking 8,900 344,875
Bristol Myers Squibb Co. Healthcare 4,300 353,675
Chase Manhattan Corporation Banking 4,680 322,335
Coastal Corporation Utility 7,900 313,038
Comsat Corporation Series 1 Communication 9,800 298,900
Digital Equipment Corp. * Technology 1,000 59,750
Dow Chemical Co. Chemicals 3,200 284,400
Dun & Bradstreet Services 4,000 243,500
Edison International Utility 10,000 160,000
Ford Motor Company Consumer Durables 8,100 290,588
Garan Services, Inc. Consumer Retail 27,000 452,250
General Dynamics Corporation Aerospace 3,900 246,188
General Motors Corporation Consumer Durables 2,400 130,200
General Motors Corp. Class H Industrial 5,200 317,850
Goodyear Tire & Rubber Company Consumer Durables 6,100 317,963
Harris Corporation Technology 5,300 327,275
International Business
Machines Corp. Technology 500 53,750
ITT Hartford Corporation Insurance 3,000 146,625
ITT Industries Consumer Durables 9,800 269,500
JC Penny, Inc. Consumer Retail 2,300 113,850
Kroger Company * Consumer Staples 7,100 291,988
McDonnell Douglas Corporation Aerospace 2,500 241,250
Mellon Bank Corporation Banking 1,350 72,563
Murphy Oil Energy 6,200 276,675
National Service Industries Industrial 6,700 247,900
Norfolk Southern Corporation Transportation 2,700 226,800
Nynex Corporation Communication 6,100 299,663
Ogden Corporation Services 11,000 222,750
Pacific Telesis Group Communication 5,100 174,675
Philip Morris Cos., Inc. Consumer Staples 3,900 351,488
PPG Industries Chemicals 5,400 273,375
Reebok International Ltd. Consumer Retail 4,200 121,800
Rhone Poulenc Rorer, Inc. Healthcare 7,400 458,800
RJR Nabisco Holdings Group Consumer Staples 7,400 221,075
Snap-On Inc. Services 5,500 264,000
Southern New England
Telecommunications Corp Communication 1,900 84,550
Sprint Corp. Communication 5,700 240,113
SuperValu Incorporated Consumer Staples 7,800 249,600
Textron Incorporated Industrial 2,300 197,225
Transamerica Corporation Insurance 2,300 174,800
Unicom Corporation Utility 7,600 209,000
United Technologies Corporation Industrial 3,000 331,500
USLife Corporation Insurance 7,650 215,156
USX Marathon Corporation Energy 11,800 259,600
VF Corporation Consumer Retail 2,600 148,200
Williams Company Incorporated Energy 4,200 214,725
Xerox Corporation Services 2,300 336,950
12,752,807
Total Common Stocks (Cost $31,594,178) 35,975,040
US GOVERNMENT 5.8%
BONDS
Principal
Amount
U.S. Treasury Bill, 08/22/96 (Cost $1,067,938) 1,100,000 $1,067,938
TIME DEPOSIT: 3.7%
Par
Value
State Street Bank and Trust Co. Eurodollar Time
Deposit 4.50%, due 5/01/96 (Cost $1,418,000) 1,418,000 $1,418,000
Total Investments: 99.5% (Cost$34,079,253) 38,460,978
Other Assets, Less
Liabilities: 0.5% 196,389
Total Net Assets: 100% $38,657,367
* Non-income Producing Security
See Notes to Financial Statements.
</TABLE>
<TABLE>
THOMAS WHITE WORLD FUND
Statement of Assets and Liabilities
April 30, 1996 (Unaudited)
<S> <C>
ASSETS
Investments in securities at value (cost $28,073,080) $38,460,978
Receivables:
Dividends and interest 218,648
Deferred organization costs 20,051
Equipment 16,352
Total assets 38,716,029
LIABILITIES
Accrued expenses 58,662
Total liabilities 58,662
NET ASSETS
Source of Net Assets:
Net capital paid in on shares of beneficial interest $33,191,504
Undistributed net investment income 169,502
Accumulated net realized gain 914,636
Net unrealized appreciation 4,381,725
Net assets $38,657,725
Shares outstanding 3,220,998
Net asset value per share $12.00
See Notes to Financial Statements
</TABLE>
<TABLE>
THOMAS WHITE WORLD FUND
Statement of Operations
Six Months Ended April 30, 1996 (Unaudited)
INVESTMENT INCOME
<S> <C>
Income:
Dividends (net of foreign taxes withheld of $32,361) $456,505
Interest 88,853
Total investment income 545,358
Expenses:
Investment management fees 178,386
Custodian fees 18,976
Transfer Agent Fees 12,391
Audit Fees 7,112
Trustees' fees and expenses 7,910
Printing Expenses 3,165
Legal fees and expenses 13,180
Organization costs 2,786
Registration Fees 12,111
Depreciation Expense 14,262
Other expenses 8,182
Total expenses 278,461
Reimbursement from Investment Manager (12,158)
Net Expenses 266,303
Net investment income 279,055
REALIZED AND UNREALIZED GAIN ON INVESTMENTS
Net realized gain on investments 999,311
Unrealized appreciation on investments 2,929,249
Net gain on investments 3,928,560
Net increase in net assets from operations $4,207,615
</TABLE>
<TABLE>
THOMAS WHITE WORLD FUND
Statements of Changes in Net Assets
Six Months Ended April 30, 1996 (Unaudited)
and the Year Ended October 31, 1995
1996 1995
<S> <C> <C>
Change in net assets from operations:
Net investment income $ 279,055 $ 508,915
Net realized gain 999,311 1,339,827
Unrealized appreciation for the period 2,929,249 979,253
Net increase in net assets from operations 4,207,615 2,827,995
Distributions to shareholders:
From net investment income (573,868) (117,567)
From net realized gain (1,424,502) (1,093)
Fund share transactions 3,469,521 16,340,920
Total increase 5,678,766 19,050,255
Net assets:
Beginning of period 32,978,601 13,928,346
End of period $ 38,657,367 $ 32,978,601
See Notes to Financial Statements
</TABLE>
THOMAS WHITE WORLD FUND
Notes to Financial Statement
October 31, 1995
Note 1. Summary of Accounting Policies
Lord Asset Management Trust (the "Trust") was organized as a Delaware
business trust on February 9, 1994, as an open-end diversified management
investment company. The Trust currently has one series of Shares, the
Thomas White World Fund (the "Fund"). The following is a summary of
significant accounting policies followed in the preparation of its financial
statements.
(a) Valuation of securities. Securities listed or traded on a recognized
national or foreign stock exchange or NASDAQ are valued at the last
reported sales prices on the principal exchange on which the
securities are traded. Over-the-counter securities and listed
securities for which no sale is reported are valued at the mean between
the last current bid and asked prices. Securities for which market
quotations are not readily available are valued at fair value as
determined by management and approved in good faith by the Board of
Trustees.
(b) Foreign currency translation. Portfolio securities and other assets and
liabilities denominated in foreign currencies are translated into U.S.
dollar amounts at date of valuation. Purchases and sales of portfolio
securities and income items denominated in foreign currencies are
translated into U.S. dollar amounts on the respective dates of such
transactions. When the Fund purchases or sells a foreign security it
will customarily enter into a foreign exchange contract to minimize
foreign exchange risk from the trade date to the settlement date of
such transaction.
The Fund does not isolate that portion of the results of operations
resulting from changes in foreign exchange rates on investments from
the fluctuations arising from changes in market prices of securities
held. Such fluctuations are included with the net realized and
unrealized gain or loss from investments.
Reported net realized foreign exchange gains or losses arise from
sales of foreign currencies, currency gains or losses realized
between the trade and settlement dates on securities transactions,
the differences between the amounts of dividends, and foreign
withholding taxes recorded on the Fund's books, and the U.S. dollar
equivalent of the amounts actually received or paid. Net unrealized
foreign exchange gains and losses arise from changes in the value of
assets and liabilities other than investments in securities at the end
of the fiscal period, resulting from changes in the exchange rates.
(c) Income taxes. It is the Fund's intention to comply with the provisions
of the Internal Revenue Code applicable to regulated investment
companies and to distribute all of its taxable income to its
shareholders. Therefore, no provision has been made for federal income
taxes. Distributions to shareholders are recorded on the ex-dividend
date. Income distributions and capital gain distributions are
determined in accordance with income tax regulations.
(d) Use of Estimates. The preparation of financial statements in conformity
with generally accepted accounting principals requires management to make
estimates and assumptions that effect the reported amounts of assets and
liabilities and disclosure of contingent liabilities at the date of the
financial statements and the reported amounts of increases and decreases
in net assets from operations during the period. Actual results could
differ from these estimates.
(e) Deferred organization costs. Organization costs have been deferred and
are being amortized over the period ending June 28, 1999.
(f) Other. Investment transactions are accounted for on a trade date basis.
Interest is accrued on a daily basis and dividend income is recorded on
the ex-dividend date, except that certain dividends from foreign
securities are recorded when the information is available to the Fund.
Note 2. Transactions in Shares of Beneficial Interest
As of April 30, 1996, there were an unlimited number of $.01 par value
shares of beneficial interest authorized. Transactions are summarized as
follows:
<TABLE>
Six Months Ended Year Ended
April 30, 1996 October 31, 1994
Shares Amount Shares Amount
<S> <C> <C> <C> <C>
Shares sold 130,728 $1,510,867 1,579,042 $16,248,265
Shares issued on
reinvestment of
distributions 175,904 1,968,358 11,889 118,659
Shares redeemed (824) (9,704) (2,379) (26,004)
Net increase 305,808 $3,469,521 1,588,552 $16,340,920
</TABLE>
Note 3. Investment Management Fees and Other Transactions with Affiliates
The Fund pays monthly an investment management fee to Lord Asset
Management at the rate of 1% of the Fund's average daily net assets. The fee
is subject to reduction in any year to the extent that expenses (exclusive of
certain expenses) of the Fund exceed any applicable state regulations. The
strictest rule currently applicable to the Fund is 2.5% of the first $30 million
of net assets, 2.0% of the next $70 million of net assets, and 1.5% of the
remainder. Although not required to do so, the Manager reimbursemd fees of
$12,158 for the period ended April 30, 1996.
Note 4. Investment Transactions
During the period ended April 30, 1996, the cost of purchases and the
proceeds from sales of investment securities, other than short-term
obligations, were $9,092,297 and $4,653,505, respectively. The cost of
securities for federal income tax purposes was $34,163,925. Realized gains
and losses are reported on an identified cost basis.
At April 30 1996, the aggregate gross unrealized appreciation and
depreciation of portfolio securities, based upon cost for federal income tax
purposes, were as follows:
<TABLE>
<S> <C>
Unrealized appreciation $5,239,074
Unrealized depreciation (942,029)
Net unrealized appreciation $4,297,045
</TABLE>
<TABLE>
Note 5. Selected Financial Information
Period from
Six Months Year June 28, 1994
Ended Ended (Inception) to
Apr. 30, 1996 Oct. 31, 1995 Oct. 31, 1994
<S> <C> <C> <C>
Per share operating performance
(For a share outstanding throughout the period)
Net asset value, beginning of period $11.31 $10.50 $10.00
Income from investment operations:
Net investment income 0.09 0.19 0.06
Net realized and unrealized gain 1.28 0.71 0.44
1.37 0.90 0.50
Distributions:
From net investment income (0.20) (0.09) --
From net realized gains (0.48) -- --
Change in net asset value for the period 0.69 0.81 0.50
Net asset value, end of period $12.00 $11.31 $10.50
Total Return 12.83% 8.65% 5.00%
Ratios/supplemental data
Net assets, end of period (000) $38,657 $32,979 $13,928
Ratio to average net assets:
Expenses (net of reimbursement) 1.49%*+ 1.49% 1.50%*+
Net investment income 1.56%* 2.08% 1.79%*
Portfolio turnover rate 14.56% 64.54% 0.01%
Average Commission Rate $0.0352 $0.0348 $0.0580
* Annualized
+ In the absence of the expense reimbursement, expenses would have been 2.36%
of average net assets.
</TABLE>
