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 Thomas White International, Ltd.
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
Douglas M. Jackman 555 Fifth Avenue
Vice-President and Secretary New York, New York 10017
Brandon S. Joel Transfer Agent
Treasurer Firstar Trust Company
615 East Michigan Street
Milwaukee, Wisconsin 53202
Thomas White World Fund The Following Letter was written by
Mr. White, the Fund's President:
Mr. White, the Fund's President June 26, 1997
and Portfolio Manager, has been an Dear Friends,
active professional investor and
analyst of common stocks since Many of you have recently called me
joining Goldman Sachs in 1966. His to discuss your ideas on how we can
interests have always been global. better serve our shareholders. Most of
As a boy he grew up around the world, you are excited about international
living in Naples, Manila and ten investing and have related many
other communities before graduating stories of the exciting changes that
from Duke University in 1965. Over are taking place around the world.
his thirty years as an investment If you have children or friends who
manager, he has been with Lehman would like to be involved with our
Brothers, Blyth Eastman Dillon and global fund, we invite their partici-
most recently, fourteen years with pation. Our phone number is
Morgan Stanley. At Morgan Stanley, 800-811-0535.
he was a Managing Director and Chief
Investment Officer for the firm's Perhaps it would be valuable, as we
valuation-oriented equity investing. approach the Fund's third birthday, to
summarize the thoughts I have presen-
Together with the organizations's ted in this column since inception in
team of seasoned domestic and 1994. These are important subjects
international analysts, Mr. White that are well worth reemphasizing,
directs the management of investment both to our old friends and to the
portfolios in Europe, the United States, many of you who are new shareholders.
Japan and the Far East. The firm's ------------------------------------
research division, the Global Capital The special advantages of a global
Institute, produces monthly publications portfolio.
which provide investment advice on the written December 28, 1994
relative attractiveness of 3000 common
stocks in forty-six countries. These Those of us who work with the Fund
are purchased by major institutional and its investments are excited about
asset management organizations world- the many opportunities that are in
wide. store for our shareholders over the
coming years. Managing your money in a
global portfolio allows us to bring
you many advantages:
1. We have the benefit of an expan-
THE WORLD HAS CHANGED. A GLOBAL ded number of investment opportu-
PORTFOLIO IS NOW BOTH LOGICAL AND nities.
INCREASINGLY INVITING. 2. There us the potential to reduce
Dec Dec Dec Dec Jun portfolio risk.
1960 1970 1980 1990 1997 3. Global portfolio mangagers have
Developed Mkts. the chance to soften interim
North America 75% 70% 61% 46% 40% portfolio declines in falling
Europe 22% 22% 23% 29% 26% markets.
Pacific 3% 8% 16% 25% 25% 4. Foreign exchange risk is diversi-
Emerging fied when investing internation-
Markets .1% .2% .8% 3% 9% ally.
100% 100% 100% 100% 100% 5. The long-term portfolio return
can be superior for a global
Global Market Value portfolio.
($trillions) $0.5 $2.0 $4.1 $8.2 $15.9 -----------------------------------
There has been a dramatic growth An individual should have and
in the relative size of developed and adhere to a sound investment plan.
and emerging markets outside the written June 22, 1995
United States. This means managers Recognizing your investment horizon
can now choose to employ wider diver- is the first step in developing a pro-
sification in the design of their per investment perspective. History
equity portfolios. suggests that an investor (saver) with
History shows that broad global di- a twenty plus year investment horizon
versification has in the past lowered should expect stock growth to average
the volatility associated with single 10%, twice the rate of bonds. Switch-
country portfolios. The Fund incor- ing back and forth between stocks and
porates this approach to obtain bonds only reduces long-term returns.
smoother returns for its shareholders. Most of a successful investor's twen-
ty-year return will come from holding
fast to the equity markets. With a
skilled professional portfolio man-
ager, your equity returns may average
12% versus 10%. This means that 83% of
your return will come from the market
itself. Clearly, staying put in equit-
ies for the long-term is a sound in-
vestment plan. Choosing this approach
is the most influential decision you
will make on your way to obtaining
superior returns.
Discouragement in falling markets
is the greatest threat to maintaining
a long-term plan. Accordingly, a sig-
nificant portion of this letter over
the years will be devoted to reinfor-
cing your decision to "Hold the
Course" and adhere to the investment
objectives you set at the beginning of
your journey.
------------------------------------
Free Enterprise and democracy is in
the process of converting the Asian
countries into fully developed, stable
nations.
written December 6, 1995
There will be bumps along the way,
but countries like China and India,
with their billion-strong populations,
are going to be mature industrial
nations within twenty-five years.
Today's developed countries are sup-
plying the tools for this expansion.
This means every country around the
world will benefit, thus raising the
global standard of living. This acti-
vity will be fueled by the growth in
the number of public companies on new
and existing exchanges. Equity securi-
ties will supply most of the capital
necessary to finance the expansion.
The world will continue to be an exci-
ting place with many positives for
which to be thankful.
- ------------------------------------ ------------------------------------
Finding and developing a relationship Mr. White descibes the Fund to mutual
with a trusted manager is an important fund analysts from Moringstar and
step in successfully reaching your Value Line.
long-term investment goals. written December 16, 1996
written June 24, 1996
Our firm's goal is to assist share- My message to these analysts was
holders in becoming successful long- quite simple. The Fund is designed to
term investors. We use the word assist, attract and serve the individual who
because a shareholder's attitude, int- is a prudent, long-term investor. We
erest level and pattern of decisions use an investment approach that com-
will also influence their success. We bines our skills in valuing global
suggest the following: companies with our expertise in de-
signing stable portfolios. Our share-
1. Be as serious and thorough in de- holder communications emphasize topics
ciding on your investment manager that we feel are important to the in-
as you would in selecting a bus- vestment success of our individual
iness partner, a lawyer or a clients. Our institutional clients are
surgeon. seasoned professionals with estab-
lished objectives and clear investment
2. Be careful to avoid salesmen, de- perspectives. Since most individuals
spite what they call themselves. within the Fund are not full-time in-
vestors, we frequently discuss setting
3. Select a manager that has a conser- goals and developing a proper perspec-
vative, common sense investment tive. We feel this is an important
approach. aspect of helping shareholders to be-
come successful long-term investors.
4. Focus on one good manager. Spend Both analysts asked me to explain
the years necessary to develop a our decision to become a world fund.
valuable relationship. We strongly believe that a world fund
is the ideal portfolio structure to
5. Enjoy investing! There is no sub- satisfy our dual goals of superior
ject more interesting than the performance and smoother investment
stock market, especially global returns.
markets.
Superior performance can come from
Our objective is to gain your res- having the whole world from which to
pect over time as a trusted advisor. choose attractive investment opportun-
We want to manage your assets in the ities. Smoother investment returns
Fund throughout your career and retire- come from the effective diversifi-
ment. We take pride that our clients of cation that global investing allows.
many years rely on our skills and integ- ------------------------------------
rity. We have designed the Thomas White
World Fund to attract people who have
worked hard to save their money and
look forward to assisting them in
reaching their investment goals.
- ---------------------------------------
I hope this review has reinforced
your understanding of the Fund and its
management. Speaking on behalf of our
organization's fifteen professionals, we
appreciate your confidence and support.
We live in an exciting world that is ex-
periencing an era of peace and growing
prosperity. There is much to be thankful
for.
Thomas S. White, Jr.
President and Portfolio Manager
<TABLE>
THE TWENTY-SEVEN YEAR PERFORMANCE OF THE WORLD EQUITY MARKET AND ITS
MAJOR REGIONAL COMPONENTS
These Index Returns are in U.S. dollars. Five-year
MSCI INDICIES Gross regional performance success is ordered from #1 (best)
to #4 (Worst)
<S> <C> <C> <C> <C> <C>
Period: Jan. 1, 1970 to Pacific
Mar. 31, 1997 World USA Europe Japan Ex-Japan
FIVE-YEAR PERIOD RETURNS
1970-1974 -1.3% -3.4%(#3) -0.9%(#2) 16.0%(#1) -6.2%(#4)
1975-1979 16.0% 13.3%(#4) 18.9%(#2) 18.8%(#3) 27.5%(#1)
1980-1984 12.4% 14.5%(#2) 6.1%(#3) 17.0%(#1) 4.1%(#4)
1985-1989 28.0% 19.8%(#4) 32.3%(#2) 41.4%(#1) 22.4%(#3)
1990-1994 4.2% 9.2%(#2) 7.0%(#3) -3.4%(#4) 15.3%(#1)
1995-1997 (3/31) 15.7% 28.7%(#1) 21.8%(#2) -11.9%(#4) 13.1%(#3)
1970-1997 Returns 12.9% 11.8% 12.9% 14.4% 12.0%
Source: Morgan Stanley Capital International
The table above presents the performance of the global stock markets from
1970 to 1997. Returns are shown in a series of five-year periods. The
world's returns are followed by those of its four component regions.
Regional performance is highlighted using ranks from #1(best) to #4(worst)
to indicate the winners and losers in each five-year period. History shows
regional returns are unpredictable, with no area holding a monopoly on per-
formance.
Note that the world and its territories all have quite similar long-term
records. But observe the world index has a more stable return pattern than
any of its components. This is because regional moves tend to offset one
another.
The Fund's design reflects its manager's belief that shareholders will
benefit from smoother world performance. A more stable portfolio encourages
investors to stay the course in falling market environments. This promotes
success in reaching long-term investment goals.
</TABLE>
MANAGEMENT DISCUSSION
YOUR FUND'S OBJECTIVE June 24, 1996
The Thomas White World Fund This report discusses portfolio strategy
seeks long-term capital growth and performance as the Thomas White World
through a flexible policy of Fund approaches its third birthday at
investing primarily in stocks of month end. The six-month period officially
companies of any nation, including reviewed in this semi-annual report con-
underdeveloped countries. cuded on April 30, 1997. As of this wri-
ting the Fund has $48.1 million of share-
holder assets.
On April 30, the Fund's portfolio inclu-
ded 222 common stocks. These represesnted
94.1% of the Fund's total value, with the
rest in cash equivalents or other assets.
The Fund's performance versus the Mor-
YOUR FUNDS'S INVESTMENT gan Stanley World Index is presented be-
PHILOSOPHY low. Current prices and return data now
appear daily in most domestic newspapers.
I. Superior returns can come from This can be found in the Mutual Fund Sec-
properly harnessing the high tion listed alphabetically under the "T"s
potential inherent within as Thomas White. We are pleased with the
undervalued global companies. portfolio's progress this last six
months. Returns have been strong, both
II. A valuation-oriented invest- in an absolute sense and in comparison
ment approach can capture this to other global mutual funds.
potential while maintaining a
lower risk profile and above Performance Year T. White MSCI
average dividend income. Ended April 30, 1997 World World
III. We emphasize owning a broadly Six Months 6.5% 7.6%
diversified portfolio of One Year 9.5% 10.3%
undervalued companies with Average Annual Return
solid cash flows, attractive Since Inception (6/28/94) 12.7% 13.8%
growth potential and approp- Cumulative Total Return
riately conservative balance Since Inception (6/28/94) 40.5% 44.2%
sheets. Assumes reinvestment of dividends and
capital gain distributions.
IV. Currency projections have
minimal influence in stock PORTFOLIO STRATEGY REVIEW
selection and portfolio
design. The Fund's performace is the product of
our investment philosophy and portfolio
strategy. Our philosophy is that under-
valued companies produce superior returns.
Accordingly, our efforts focus on analyz-
ing companies using our organization's
valuation methods. Our portfolio strategy
is to buy those companies that sell at the
greatest discount to their valuations,
then sell them when they are overvalued.
We believe that successful stock selec-
tion worldwide is one of our organiza-
tion's distinct strengths. Our analysts
have established methods of valuing stocks
in every developed country throughout the
world. We also believe that broad country
diversification best captures the poten-
tial for portfolio return smoothness that
is the unique advantage of a world fund.
Furthermore, diversified country exposure
assures that the rewards of good stock
selection will not be eclipsed by a poorly
performing country. Accordingly, the
The Thomas White World Fund Fund's portfolio now owns common stocks in
Geographic distribution on in twenty major countries.
April 30, 1997
Based on Long-Term Securities
Over the last six months ended April 30,
Continental Europe 27.8% the Fund has mildly underperformed its
United Kingdom 10.8% its market benchmark, the Morgan Stanley
North America 38.7% Capital International World Index.
Latin America 0.8% Benchmark weights, as of May 1, in the
Japan 10.0% three large world subregions, are Europe
Far East 7.1% (27.6%), North America (49.6%), and the
Australia and New 4.9% Pacific (22.8%). Bottom-up stock valu-
Zealand ations influenced us to be more balanced
in these three regions (38.6%, 39.5% and
22.0%). The choice to over-weight Euro-
The Thomas White World Fund pean stocks, due to their attractive valu-
Top Ten Holdings on ations, reduced the Fund's performance.
April 30, 1997 Returns were also held down by the Fund's
Based on Total Net Assets below-index exposure to United States
stocks. Despite rich stock valuations,
Company % of Total U.S. equities continue to enjoy stronger
Industry, Country Net Assets returns than foreign securities. Fortun-
ately, our strong stock selection in all
ING Group 1.7% three regions partially offset the effect
Insurance, Netherlands of our regional country mix. The final re-
sult was a solid 6.5% retrun over the half
Bristol-Myers Squibb 1.3% year versus 7.6% for the MSCI World Index.
Healthcare, United States Our current strategy continues to stress
a more balanced regional mix.
Garan, Inc. 1.2% The transactions in the Fund's portfolio
Consumer Retail, United States Fund is the product of our organization's
monthly investment process. The port-
STET risp 1.1% folio's turnover rate of 19.5% over the
Communication, Italy last six months reflects positions which
were sold after our monthly review process
Philip Morris 1.1% because they became overvalued. This reg-
Consumer Staples, United States ular process allows us to maintain an
undervalued portfolio and benefit from our
Hoogovens NV 1.1% analyst's newest investment ideas.
Metals, Netherlands
HSBC Holdings 1.1%
Banking, Hong Kong
Harris Corporation 1.1%
Industrial, United States
Chase Manhattan Corp. 1.0%
Banking, United States
Eridania Beghin-Say 0.9%
Consumer Staples, France
The Thomas White World Fund is designed to take advantage of the positive
changes occurring in the world today.
These forty-six countries contain over Whether you realize it or not, you are
3000 companies that meet the fund's at the very epicenter of what is dri-
quality standards. As a shareholder, ving change in today's world: An un-
you are a partial owner of 222 of the precedented explosion of highly
most undervalued of these firms. beneficial global capitalism.
DEVELOPED MARKETS EMERGING MARKETS
EUROPE PACIFIC EUROPE, MIDDLE EAST & ASIA PACIFIC
Austria Australia AFRICA India
Belgium Hong Kong Greece Pakistan
Denmark Japan Hungary Sri Lanka
Finland New Zealand Poland China
France Singapore Portugal Indonesia
Germany Turkey Korea
Ireland Israel Malaysia
Italy South Africa Philippines
Netherlands Zimbabwe Taiwan
Norway Thailand
Spain LATIN AMERICA
Sweden Argentina
Switzerland Brazil
United Kingdom Chile
Columbia
NORTH AMERICA Mexico
Canada Peru
United States Venezuela
The Fund takes full advantage of the analysis on 4200 global companies. Its
extensive resources of the Global Cap- monthly publications are sold to asset
ital Institute. This investment re- management organizations worldwide.
search organization does valuation
Performance Summary
This Fund's performance period since inception was two years, ten months and two
days in length. Over this period the Fund's return, with dividends reinvested,
was 40.5%. In the same period the MSCI World Index, with net dividends,
returned 44.2%. 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
dividend and capital gain distributions reinvested, and the MSCI World Index
(see footnote 1). The return since inception (June 28, 1994) was 40.5% for the
Fund and 44.2% for the World Index (see footnote 2). The one year return for
the Fund was 9.5%. The Fund's average total return since inception was 12.7%.
<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
5/31/96 12,914 13,079
6/30/96 12,903 13,143
7/31/96 12,475 12,677
8/31/96 12,710 12,820
9/30/96 13,021 13,319
10/31/96 13,192 13,409
11/30/96 13,898 14,157
12/31/96 13,960 13,928
1/31/97 14,018 14,094
2/28/97 14,145 14,253
3/31/97 13,937 13,968
4/30/97 14,053 14,422
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 9, 1996, the Board of
Trustees authorized an income dividend and capital gains distribution with an
ex-date of December 24, 1996, payable on December 27, 1996, for shareholders of
record December 23, 1996.
In accordance with current Internal Revenue Service requirements, these
distributions comprised substantially all earnings of the Fund from net
investment income through December 31, 1996, and net realized gains through the
fiscal year ending October 31, 1996.
<TABLE>
THOMAS WHITE WORLD FUND
Portfolio of Investments
Issue Industry Shares Value
<S> <C> <C> <C> <C>
COMMON STOCKS: 94.1%
AUSTRALIA: 4.3%
Email Ltd. Industrial 77,802 $260,255
Goodman Fielder Ltd. Consumer Staples 236,300 309,553
National Australia Bank Ltd. ADR Banking 4,300 296,163
Pacific Dunlop Ltd Industrial 93,700 252,793
Rothmans Holdings Ltd. Consumer Staples 56,000 367,230
Santos Ltd. Energy 89,437 348,697
1,834,691
BELGIUM: 1.2%
Cobepa Financial Diversified 4,300 173,619
Solvay Chemicals 600 359,025
532,644
CANADA: 2.4%
BCE Inc. Communication 4,900 229,260
Canfor Corporation Building 11,200 110,173
Methanex Corporation * Chemicals 16,300 152,761
Quebecor Incorporated Class B Services 9,300 159,680
Royal Bank of Canada Banking 6,200 247,725
Transalta Corporation Utilities 12,900 143,046
1,042,645
DENMARK: 0.6%
Codan Forsikring Insurance 2,000 263,686
263,686
FINLAND: 1.4%
Orion B Healthcare 7,000 262,142
UPM-Kymmene Oy Forest & Paper 15,200 345,912
Rauma Industrial 423 8,962
616,746
FRANCE: 4.8%
Assurance General France Insurance 8,800 286,126
Bouygues Building 2,058 230,207
Cap Gemini Technology 2,700 163,419
Christian Dior Consumer Retail 1,900 281,397
Danone Consumer Staples 1,200 174,642
Eridania Beghin-Say Consumer Staples 2,600 393,973
Saint Louis SA Services 1,000 236,110
Societe Generale Banking 2,656 297,410
2,063,284
GERMANY: 1.4%
Bankgesellschaft Berlin Banking 15,800 328,866
Merck KGAA Healthcare 6,700 265,833
594,699
HONG KONG: 5.1%
Amoy Properties Financial Diversified 149,500 147,616
HSBC Holdings Banking 18,000 455,344
Hong Kong Land Holdings Financial Diversified 54,000 112,320
Jardine Strategic Holdings Services 88,500 300,900
Jardine Strategic Holdings Warrants Services 4,425 1,505
Lai Sun Development Financial Diversified 96,000 117,090
Lai Sun Hotel Warrants Services 16,695 1,594
New World Development Co. Industrial 62,000 357,690
Shangri-La Asia Services 104,000 129,532
Shun Tak Holdings Transportation 228,000 150,070
Swire Pacific A Transportation 15,000 115,676
Wheelock & Company Consumer Retail 140,000 290,920
2,180,257
ITALY: 4.4%
Banca Commerciale Italiana Banking 146,600 313,299
Banco Popolare di Bergamo Banking 19,200 279,815
Fiat Consumer Duraables 65,100 214,980
Montedison Industrial 392,900 257,900
STET Risp Communication 130,300 481,901
Telecom Italia Communication 133,400 352,803
1,900,698
JAPAN: 9.4%
Amano Technology 7,000 65,542
Aoki International Consumer Retail 7,000 121,720
Aoyama Trading Consumer Retail 5,000 140,840
Bank of Iwate Banking 1,870 89,899
Best Denki Consumer Retail 10,000 89,697
Brothers Industries Technology 16,000 60,301
Calsonic Durables 17,000 84,267
Dai-Dan Building 10,000 95,991
Daido Steel Metals 16,000 43,181
Daiichi Pharmaceutical Healthcare 5,000 80,255
Dainippon Ink & Chemicals Chemicals 11,000 41,111
Daiwa Bank Banking 24,000 77,422
Daiwa Securities Financial Diversified 9,000 59,837
Dowa Mining Metals 25,000 83,205
East Japan Railway Transportation 22 95,031
Ezaki Glico Consumer Staples 9,100 71,600
Fuji Electric Capital Goods 13,000 51,552
Fuji Fire & Marine Insurance Insurance 15,000 49,569
Fuji Photo Film Company Services 4,000 152,642
Fujitsu Technology 13,000 135,017
Fukuoka City Bank Banking 22,380 88,756
Furukawa Company Capital Goods 16,000 51,992
General Sekiyu Energy 14,000 76,997
Hisamitsu Pharmaceutical Healthcare 13,000 88,069
Hitachi Koki Capital Goods 7,000 44,337
Hokkaido Electric Power Utilities 3,900 60,758
Itoham Foods Consumer Staples 17,000 85,605
Japan Tobacco Consumer Staples 10 63,653
Juroku Bank Banking 11,000 48,208
Koito Manufacturing Durables 12,000 72,702
Kyushu Electric Power Utilities 2,000 32,731
Long-Term Credit Bank of Japan Banking 22,000 59,026
Maeda Building 6,000 28,561
Marubeni Industrial 21,000 77,824
Mitsubishi Gas Chemical Chemicals 13,000 47,358
Mitsui Petrochemical Industries Chemicals 10,000 46,973
Nichimen Corporation Industrial 28,000 81,318
Nikko Securities Financial Diversified 14,000 81,953
Nintendo Company Services 2,000 77,988
Nisshin Fire & Marine Insurance Insurance 15,000 144,931
NOK Corporation Consumer Durables 13,000 47,210
San-in Godo Bank Banking 7,000 46,099
Sanki Engineering Capital Goods 13,000 104,332
Shiga Bank Banking 18,000 80,444
Shikoku Electric Power Utilities 4,000 60,427
Shinwa Bank Banking 23,000 101,343
Suzuki Motor Consumer Durables 11,000 116,842
Takara Standard Consumer Durables 15,000 113,301
Toenec Building 5,000 25,767
Uniden Technology 5,000 50,748
Yakult Honsha Consumer Staples 7,000 67,193
Yamanouchi Pharmanceuticals Healthcare 5,000 106,612
Yaskawa Electric Company Capital Goods 27,000 79,663
4,048,400
MALYASIA: 1.6%
Amsteel Corporation Industrial 162,000 121,338
Genting Services 18,200 97,163
Leader Universal Industrial 59,000 117,528
Oriental Holdings Berhad Services 16,000 121,115
Perlis Plantation Berhad Consumer Staples 43,750 130,725
Rashid Hussain Berhad Financial Diversified 17,000 113,108
700,977
MEXICO: 0.7%
Telefonos de Mexico Series L ADR Communication 7,400 305,250
305,250
NETHERLANDS: 7.5%
Bolswessanen Consumer Staples 15,150 303,800
DSM NV Chemicals 3,800 378,080
Hoogovens Metals 10,034 457,997
ING Groep NV Insurance 19,189 752,857
KLM Transportation 9,800 289,499
KNP BT Retail 10,000 196,938
OCE-Van der Grinten Technology 1,100 132,969
Randstad Holdings Services 2,100 188,475
Royal Dutch Petroleum Energy 1,100 198,275
Vendex International Cert. Services 4,300 203,990
Wolters Kluwer Services 1,200 142,103
3,244,983
NEW ZEALAND: 0.4%
Brierley Investments Ltd. Industrial 89,600 78,660
Lion Nathan Limited Consumer Staples 33,000 79,154
157,814
NORWAY 0.7%
Den Norske Bank A Banking 87,300 315,939
315,939
SPAIN: 1.2%
FECSA Utilities 15,945 130,245
U Fenosa Utilities 45,900 382,774
513,019
SWEDEN: 2.7%
Electrolux B Consumer Durables 6,500 373,172
SKF B Industrial 12,000 260,264
Trelleborg B Industrial 16,300 254,746
Volvo B Consumer Durables 11,800 297,326
1,185,508
SWITZERLAND: 0.6%
George Fischer Capital Goods 200 240,939
240,939
UNITED KINGDOM: 10.1%
Abbey National Banking 20,700 287,749
Arjo Wiggins Appleton Forest & Paper 61,800 183,497
Bank of Scotland Banking 17,000 101,691
British Steel Metals 66,200 152,386
British Telecom Communication 32,400 237,405
Burton Group Consumer Retail 63,800 157,720
Chubb Security Services 27,200 199,139
Commercial Union Insurance 11,000 121,525
Guardian Royal Insurance 43,600 193,702
Harrison & Crosfield Industrial 89,300 178,823
Hillsdown Holdings Consumer Staples 61,800 180,487
ICI Chemicals 14,600 166,333
Inchcape Services 43,800 194,551
Ladbroke Group Services 63,996 238,610
Lonrho Industrial 75,700 169,197
MFI Furniture Retail 29,900 66,405
National Grid Utilities 48,100 176,176
National Westminster Bank Banking 18,779 222,535
Next Retail 12,600 132,557
Redland Building 7,300 41,767
Severn Trent Utilities 13,500 165,231
Southwest Water Utilities 22,747 252,869
Tate & Lyle Consumer Staples 23,900 178,029
T & N Consumer Durables 79,100 173,101
Unigate Group Consumer Staples 28,000 211,067
4,382,552
UNITED STATES: 33.6%
Abbott Laboratories Healthcare 3,400 207,400
Alliance Capital Management Financial Diversified 5,000 135,625
Allmerica Property Insurance 2,200 69,575
Amerada Hess Energy 4,300 209,088
American National Insurance Co. Insurance 3,400 263,500
American Stores Consumer Staples 6,000 273,000
Amsouth Bancorp Banking 4,700 247,925
Anheuser Busch Consumer Staples 6,600 282,975
Atlantic Richfield Energy 1,300 176,963
Avery Denison Services 6,800 249,900
Becton Dickinson Healthcare 3,800 174,800
Black & Decker Services 3,400 113,900
BMC Software Technology 1,600 69,200
Bristol Myers Squibb Healthcare 8,600 563,300
Brown Forman B Consumer Staples 5,100 257,550
Champion International Forest & Paper 3,100 144,150
Chase Manhattan Corporation Banking 4,680 432,900
Cisco Systems* Technology 800 41,400
CMS Energy Corporation Utilities 2,100 66,675
Comerica Banking 2,700 157,950
Dell Computer Technology 1,800 152,100
Deltic Timber Forest & Paper 1,771 44,939
Du Pont Company Chemicals 1,600 169,800
Enova Corporation Utilities 10,500 232,313
Entergy Utilities 2,800 65,450
Exel Limited Insurance 1,800 70,200
First of America Banking 2,600 172,900
FMC Software Technology 2,500 167,812
Ford Motor Company Consumer Durables 8,100 281,475
Garan Services, Inc. Consumer Retail 27,000 506,250
General Dynamics Corporation Aerospace 3,900 277,875
General Motors Corp. Class H Industrial 5,200 279,500
GPU Inc. Utilities 2,500 80,625
Harris Corporation Industrial 5,300 453,150
HBO & Company Technology 800 42,800
ITT Industries Consumer Durables 9,800 247,450
JP Morgan & Company Banking 2,300 234,313
King World Productions Services 2,800 102,200
Mellon Bank Corporation Banking 1,350 112,219
Merrill Lynch Financial Diversified 800 76,200
Midamerican Energy Utilities 4,800 80,400
Murphy Oil Energy 6,200 269,700
National Service Industries Industrial 6,700 282,238
Norfolk Southern Corporation Transportation 2,700 242,662
Northrop Grumman Aerospace 3,500 292,250
Nynex Corporation Communication 6,100 315,675
Peoplesoft Inc. Technology 1,400 58,100
Phelps Dodge Corporation Metals 1,000 76,750
Philip Morris Consumer Staples 11,700 460,688
Pitney Bowes Inc. Services 2,600 166,400
PPG Industries Inc. Chemicals 5,400 293,625
Raytheon Industrial 4,100 178,862
RJR Nabisco Holdings Group Consumer Staples 7,400 220,150
Schering-Plough Healthcare 4,400 352,000
Southern New England
Telecommunications Corp Communication 7,100 259,150
St. Paul Companies Insurance 1,200 80,400
Sun Microsystems* Technology 1,600 46,100
SuperValu Inc. Consumer Staples 9,800 300,125
Tele-Communications A Services 8,500 117,406
Tellabs Inc. Technology 2,000 79,750
Tenet Healthcare Healthcare 6,885 179,010
Textron Inc. Industrial 2,300 256,163
Torchmark Corporation Insurance 1,300 80,762
Travelers Corporation Financial Diversified 4,500 248,063
Union Texas Petroleum Energy 7,600 143,450
US Robotics Technology 400 20,250
US West Communications Communications 9,000 316,125
USX Marathon Corporation Energy 11,800 325,975
VF Corporation Consumer Retail 2,600 187,525
Warner-Lambert Healthcare 2,200 215,600
Washington Post Class B Services 600 215,550
Xerox Corporation Services 3,700 227,550
14,495,801
Total Common Stocks (Cost $35,959,520) $40,620,532
US GOVERNMENT 3.2%
BONDS
Principal
Amount
U.S. Treasury Bill, 08/07/97 (Cost $1,363,343) 1,385,000 $1,365,271
TIME DEPOSIT: 2.3%
Par
Value
State Street Bank and Trust Co. Eurodollar Time
Deposit 4.50%, due 5/01/97 (Cost $1,010,000) 1,010,000 1,010,000
Total Investments: 99.6% (Cost$38,332,863) 42,995,803
Other Assets, Less
Liabilities: 0.4% 171,190
Total Net Assets: 100% $43,166,993
* Non-income Producing Security
See Notes to Financial Statements.
</TABLE>
<TABLE>
THOMAS WHITE WORLD FUND
Statement of Assets and Liabilities
April 30, 1997 (Unaudited)
<S> <C>
ASSETS
Investments in securities at value (cost $38,332,863) $42,995,803
Cash 704
Dividends and interest 213,115
Prepaid expenses and deferred organization costs 14,574
Equipment 11,170
Total assets 43,235,366
LIABILITIES
Payable for Securities Purchased 31,071
Accrued expenses 37,302
Total liabilities 68,373
NET ASSETS
Source of Net Assets:
Net capital paid in on shares of beneficial interest $37,094,939
Undistributed net investment income 183,521
Accumulated net realized gain 1,225,593
Net unrealized appreciation 4,662,940
Net assets $43,166,993
Shares outstanding 3,545,604
Net asset value per share $12.17
See Notes to Financial Statements.
</TABLE>
<TABLE>
THOMAS WHITE WORLD FUND
Statement of Operations
Six Months Ended April 30, 1997 (Unaudited)
INVESTMENT INCOME
<S> <C>
Income:
Dividends (net of foreign taxes withheld of $42,506) $529,455
Interest 55,461
Total investment income 584,916
Expenses:
Investment management fees 208,866
Custodian fees 21,595
Transfer Agent Fees 10,402
Audit fees and expenses 8,653
Trustees' fees and expenses 7,527
Printing Expenses 5,973
Legal fees and expenses 13,528
Organization costs 2,988
Registration fees 16,682
Depreciation expense 2,376
Other expenses 9,655
Total expenses 308,245
Net investment income 276,671
REALIZED AND UNREALIZED GAIN ON INVESTMENTS
Net realized gain on investments 1,310,266
Unrealized appreciation on investments 995,391
Net gain on investments 2,305,657
Net increase in net assets from operations 2,582,328
See Notes to Financial Statements.
</TABLE>
<TABLE>
THOMAS WHITE WORLD FUND
Statements of Changes in Net Assets
Six Months Ended April 30, 1997 (Unaudited)
and the Year Ended October 31, 1996
1997 1996
<S> <C> <C>
Change in net assets from operations:
Net investment income $ 276,671 $ 607,816
Net realized gain 1,310,266 2,434,680
Unrealized appreciation for the period 995,391 2,215,073
Net increase in net assets from operations 2,582,328 5,257,569
Distributions to shareholders:
From net investment income (591,413) (573,868)
From net realized gain (2,434,679) (1,424,501)
Fund share transactions 4,453,700 2,919,256
Total increase 4,009,936 6,178,456
Net assets:
Beginning of period 39,157,057 32,978,601
End of year $ 43,166,993 $ 39,157,057
See Notes to Financial Statements.
</TABLE>
THOMAS WHITE WORLD FUND
Notes to Financial Statement
Six Months Ended April 30, 1997
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 affect 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, 1997, 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, 1997 October 31, 1996
Shares Amount Shares Amount
<S> <C> <C> <C> <C>
Shares sold 150,030 $1,833,823 175,437 $2,048,354
Shares issued on
reinvestment of
distributions 249,893 2,986,226 175,904 1,968,359
Shares redeemed (29,993) (366,349) (90,857) (1,097,457)
Net increase 369,930 4,453,700 260,484 $2,919,256
</TABLE>
Note 3. Investment Management Fees and Other Transactions with Affiliates
The Fund pays monthly an investment management fee to Thomas White
International, Ltd. at the rate of 1% of the Fund's average daily net assets.
Note 4. Investment Transactions
During the period ended April 30, 1997, the cost of purchases and the
proceeds from sales of investment securities, other than short-term
obligations, were $8,921,830 and $7,715,793, respectively. The cost of
securities for federal income tax purposes was $38,417,535. Realized gains
and losses are reported on an identified cost basis.
At April 30, 1997, 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 $6,694,196
Unrealized depreciation (2,115,928)
Net unrealized appreciation $4,578,268
</TABLE>
<TABLE>
Note 5. Selected Financial Information
Six Months
Ended
April 30, 1997
<S> <C>
Per share operating performance
(For a share outstanding throughout the period)
Net asset value, beginning of period $12.33
Income from investment operations:
Net investment income 0.08
Net realized and unrealized gain 0.71
0.79
Distributions:
From net investment income (0.19)
From net realized gains (0.76)
(0.95)
Change in net asset value for the period (0.16)
Net asset value, end of period $12.17
Total Return 6.53%
Ratios/supplemental data
Net Assets. End of period (000) $43,167
Ratio to average net assets:
Expenses (net of reimbursement) 1.47%
Net Investment Income 1.32%
Portfolio turnover rate 19.48%
Average commission rate (per share):++ $0.0122
Period from
Year Year June 28, 1994
Ended Ended (Inception) to
Oct. 31, 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 0.19 0.19 0.06
Net realized and unrealized gain 1.51 0.71 0.44
1.70 0.90 0.50
Distributions:
From net investment income (0.20) (0.09) --
From net realized gains (0.48) -- --
(0.68) (0.09) --
Change in net asset value for the period 1.02 0.81 0.50
Net asset value, end of period $12.33 $11.31 $10.50
Total Return 15.63% 8.65% 5.00%**
Ratios/supplemental data
Net assets, end of period (000) $39,157 $32,979 $13,928
Ratio to average net assets:
Expenses (net of reimbursement) 1.50% 1.49% 1.50%*+
Net investment income 1.63% 2.08% 1.79%*
Portfolio turnover rate 51.22% 64.54% 0.01%
Average commission rate (per share)++ $0.0337 $0.0303 $0.0618
* Annualized
+ In the absence of the expense reimbursement, expenses would have been 2.36%
of average net assets.
</TABLE>
