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THOMAS WHITE FUNDS FAMILY
OFFICERS AND TRUSTEES
Thomas S. White, Jr.
Chairman of the Board
and President
Jill F. Almeida
Trustee
Philip R. Haag
Trustee
Nicholas G. Manos
Trustee
Edward E. Mack III
Trustee
Semi-Annual Report John N. Venson, D.P.M.
Trustee
American Growth Fund
American Opportunities Fund Douglas M. Jackman
International Fund Vice President and Secretary
Arpil 30, 1999 Brandon S. Joel
Vice President and Treasurer
David Sullivan II
Assistant Treasurer
INVESTMENT ADVISER AND
ADMINISTRATOR
440 S. LaSalle Street, Suite 3900
Chicago, Illinois 60605-1028
CUSTODIANS
State Street Bank and Trust Company
Boston, Massachusetts
Firstar Bank Milwaukee
Milwaukee, Wisconsin
LEGAL COUNSEL
Dechert Price & Rhoads
Washington, DC
FOR CURRENT PERFORMANCE, NET ASSET INDEPENDENT ACCOUNTANTS
VALUE, OR FOR ASSISTANCE WITH YOUR McGladrey & Pullen, LLP
ACCOUNT, PLEASE CONTACT THE FUNDS New York, New York
FAMILY AT 800-811-0535 OR VISIT OUR WEB
SITE AT WWW.THOMASWHITE.COM. TRANSFER AGENT
Firstar Mutual Fund Securities L.L.C.
Milwaukee, Wisconsin
<PAGE>
THOMAS WHITE FUNDS FAMILY
Thomas White is the Funds' President and Portfolio Manager. He has been an
active investor since joining Goldman Sachs in 1966. His interests have always
been global. As a boy he grew up around the world, living and traveling
throughout Europe, North America and the Far East before graduating from Duke
University in 1965. Over his thirty-three years as an investment manager, he has
been with Lehman Brothers, Blyth Eastman Dillon and until 1992, fourteen years
with Morgan Stanley. At Morgan Stanley, he was a Managing Director and the Chief
Investment Officer for the firm's American valuation-oriented equity investing.
Together with the organization's team of seasoned domestic and international
analysts, Mr. White directs the management of portfolio investments in Europe,
Africa, North America, Latin America, Japan and Asia. The firm's research
division, the Global Capital Institute, produces monthly publications which
provide investment advice on the relative attractiveness of 2,400 common stocks
in forty-seven countries. These are purchased by major institutional asset
management organizations worldwide.
THE FOLLOWING LETTER WAS WRITTEN BY MR. WHITE, THE FUNDS' PRESIDENT:
June 30, 1999
Dear Friends,
The markets worldwide have recovered nicely since the 1998 October low.
That summer decline was started by financial instability in Russia and made
worse by the failing hedge fund, Long-Term Capital Management. Alan Greenspan
orchestrated a successful recovery from the crisis by combining soothing
dialogue with three rate cuts.
The interest rate reductions of late 1998 have caused stronger than
expected growth in the United States. This, in turn, has stimulated economic
growth in Latin America and the Far East. Japan is even showing early signs of
recovery from its long, "structural" recession.
Now the poignant question is whether inflation will rise enough for the
Federal Reserve to increase rates significantly, in order to slow down the pace
of U.S. growth. More specifically, are bonds and the stock market about to enter
a bear market? My feelings are that Mr. Greenspan will adjust rates prudently
and that this will not cause a major correction. Even if rates increased and
caused stocks to have a mild decline, the future is just too attractive to try
to time the stock market. True investors should ignore the possibility of an
interim decline and focus on the long term. With this in mind, I am repeating my
thoughts of last December concerning my outlook for long-term world growth.
It is a common investor tendency to dwell on short- to intermediate-term
events. In reality, longer-term trends are far more predictable and meaningful
to future equity returns. Our long-term world vision makes us very enthusiastic
about the future of domestic and international investing.
<PAGE>
First, some perspective: the annualized common stock returns in the
United States have averaged roughly 11.0% since 1926. The equivalent MSCI world
and regional returns, available since 1970, are shown in the return table on
page 10. World returns (+12.1%), European returns (+13.6%) and U.S. returns
(+13.3%) have been quite similar over this period.
We believe that over the next twenty years, world, European and U.S.
equity markets will produce annualized returns of 11%. This projection reflects
our strong confidence in a high level of future economic global growth. It is
tempered by the fact that equities are currently priced above their normal
valuations. The attractive conditions for world growth will probably cause
equities to be priced on the expensive side throughout this entire period.
[side bar]
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THE WORLD HAS CHANGED.
ADDING AN INTERNATIONAL FUND TO U.S.
EQUITY HOLDINGS OFFERS THE POTENTIAL
FOR BOTH IMPROVED PERFORMANCE AND SMOOTHER RETURNS.
Dec Dec Dec Dec Apr
1960 1970 1980 1990 1999
--- --- --- --- ---
Developed Markets
- -----------------
Canada 5% 4% 3% 2% 2%
Europe 22% 22% 23% 25% 27%
Pacific 3% 8% 16% 27% 14%
United States 70% 66% 57% 43% 52%
--- --- --- --- ---
Emerging Markets
- ----------------- .1% .2% .8% 3% 5%
--- --- --- --- ---
100% 100% 100% 100% 100%
Global Market
Value ($trillions) $0.5 $2.0 $4.1 $8.2 $22.3
There has been growth in the relative size of developed and emerging markets
outside the United States since 1960. This means investors can now choose to
employ wider diversification in the design of their equity portfolios.
Thomas White suggests shareholders hold both its American and International Fund
to obtain smoother returns.
History shows that broad global diversification has in the past lowered the
volatility associated with single country portfolios.
- -------------------------------------------------------------------------------
We see three positive trends heavily influencing the next twenty years:
I. The fall of the Berlin Wall in 1989 symbolized worldwide acceptance of
the West's successful recipe for economic growth. Countries representing seventy
percent of the earth's population have now begun a slow move toward improving
the standard of living of their citizens. This activity will generate
unparalleled business opportunities.
As Americans and Canadians, we recognize the magic that occurs when a new
immigrant arrives upon our shores. Gradually, painfully, but surely, nations
around the world will modify their economic systems affording ambitious
individuals the opportunity to improve their lives.
With just one superpower left, regional conflicts and terrorism will
replace World Wars. This is promoting a shift away from non-productive military
spending toward capital expenditures that benefit long-term growth. Regional
strife, caused by political, ethnic and religious differences, will sadly
continue. United States now recognizes it cannot always cure these situations
(Somalia) and will choose to avoid on-the-ground military involvement (Kosovo)
unless it is strategically necessary, as in Kuwait.
II. We believe that future advances in technology will lead to dramatic
improvements, corporate productivity and a cornucopia of new products.
Computer-related technology is expanding earnings growth by reducing
business expenses and lowering manufacturing costs. Moreover, the cost of
computing power continues to decline. In terms of its capital expenditure
productivity, if an automobile's price had fallen at the same rate that computer
power has declined since 1960, a salesman's new Buick would now only cost $103.
The "digital revolution" that you read about is not an exaggeration, it's a
reality.
Biotechnology advances will also spur major improvements in life span,
health care and food production.
Inflation should be contained as this new productivity will heighten
competition keeping manufacturing costs and consumer prices suppressed.
III. Global Communications and the Internet will empower the individual, both
politically and economically. This will benefit world growth.
It is widely recognized that dramatic advances in technology drive major
increases in corporate productivity. Just as important, but less commonly
appreciated, is that technological change can also act as a catalyst to unlock
the potential in exceptional individuals. In fact, world progress is heavily
influenced by the genius of highly talented people. The United States, with its
open political and business environment, has nurtured talented individuals
allowing them to flourish. These individuals have in turn benefitted economic
growth and society.
While many individuals like Warren Buffett and Bill Gates have succeeded,
most of the world's human talent is largely undeveloped. It has been held back
by repressive governments, poor education, a lack of tools, capital,
information, etc. Global television broadcasts and, especially the Internet,
will improve these conditions by disseminating, at minimal cost, the latest
knowledge, methods, systems and resources. The liberation of these talented
humans will be a major driver of future world growth.
Given this attractive vision of the future, we recommend investors stay
fully invested and try to weather the interim storms. We will do our best to
provide shareholders with strong long-term returns and stable interim
performance.
Speaking on behalf of our firm's fifteen professionals, we appreciate
your confidence in our organization and your support of our Funds.
Thomas S. White, Jr.
President and Portfolio Manager
<PAGE>
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THE FUNDS HAVE IDENTICAL GOALS
The investment objectives of the American Growth, American Opportunities and
International Funds are all long-term capital growth.
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THE THOMAS WHITE FUND'S
INVESTMENT PHILOSOPHY
I. Superior returns can come from properly harnessing the high potential
inherent within undervalued companies.
II. A valuation-oriented investment approach can capture this potential while
maintaining a lower risk profile.
III. Management emphasizes owning broadly diversified portfolios of
undervalued companies that have solid cash flows, attractive growth potentials
and appropriately conservative balance sheets.
IV. The Advisor adheres to a long-term investment approach, and it does not
attempt to project short-term changes in the general market.
- --------------------------------------------------------------------------------
The Thomas White Funds Family now offers
three 100% No-Load Mutual Funds.
The American Growth Fund
The American Opportunities Fund
The International Fund
Major improvements to our family of funds were completed on May 1st. Over
the last several months our family has been transformed from a single world fund
to three funds: 1) a large-cap U.S. fund, 2) a mid- and small cap U.S. fund and
3) an international fund. The Thomas White Funds Family can now serve an equity
investor's requirements.
These changes were in response to the needs of our shareholders. They and
their advisors want the ability to allocate their equity investments among
separate equity classes in order to diversify their holdings.
As of June 29, 1999 our new Growth Fund exceeded $21 million in net
assets and the Opportunities Fund, which started on March 4, 1999, had assets
over $10 million. We appreciate the enthusiasm our shareholders have shown in
the new Funds.
The common goal of the Thomas White Funds is to provide our shareholders
with solid performance and above average portfolio stability.
Shareholders that can "stay the course" and maintain a well thought out,
long-term strategy, have traditionally done well in equities. On the other hand,
equity investors, exposed to volatile funds, tend to make mistakes they regret
later.
We attempt to make our Fund shareholders feel comfortable within the
volatile world of the stock market. How?
First, we try to design portfolios to have solid performance and to be
more stable than many comparable funds. We select stocks on the basis of how we
think they will perform in both rising and declining markets. Our 100%-owned
research unit, the Global Capital Institute, provides us with an ongoing flow of
prospects in most every industry in the forty-seven countries it covers. This
gives us the opportunity to construct carefully diversified portfolios. Owning a
diversified portfolio of undervalued equities may help moderate the disruption
caused by unpredictable business and market cycles. Strong and weak sectors tend
to offset, producing smoother overall performance.
Second, we try to attract and serve the prudent, long-term investor and
discourage speculators. Long-term shareholders produce fewer fund redemptions
and, therefore, lower portfolio turnover and related expenses for the Funds.
They also allow us to hold less liquidity-related cash, which helps achieve the
Funds' long-term goals.
Third, we encourage shareholders to think of us as an advisor and not just
as a mutual fund. Working with a trusted advisor increases the likelihood of
investment success. We know that a client's accomplishments depend on his or her
knowledge, planning and self-discipline. We attempt to focus our regular
shareholder communications on these areas.
<PAGE>
Fourth, we communicate with our shareholders immediately during periods of
market stress. During these days, the financial media behaves, in effect, like
an individual who "cries fire in a crowded theater." The press exaggerates
short-term negatives in order to attract an audience, This tests the resolve of
serious ling-term individual investors.
We help shareholders avoid the type of investment error made during these
periods by interpreting the news from a longer-term investment perspective.
Shareholder response to these communications has been quite enthusiastic. Please
provide us with you fax number and e-mail address. A complete set of past
shareholder letters and reports are available at our web site,
www.thomaswhite.com, or by calling 1-800-811-0535.
We encourage our long-term International Fund shareholders to consider
owning shares of the American Growth Fund and the American Opportunities Fund.
We believe that an investor's assets should be allocated between companies of
different sizes, and in different regions of the world. The Thomas White Funds
are designed to serve as vehicles for such diversification.
[side bars]
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The common goal of the Thomas White Funds is to provide our shareholders
with solid performance and above average portfolio stability.
Shareholders that can "stay the course" and maintain a well thought out,
long-term strategy, have traditionally done well in equities.
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THOMAS WHITE AMERICAN GROWTH FUND
TOP TEN HOLDINGS
ON APRIL30, 1999
BASED ON TOTAL NET ASSETS
- ---------------------------------------------------------
Company % of Total
Industry Net Assets
- ---------------------------------------------------------
U S West 2.78%
Communications
- ---------------------------------------------------------
Bell Atlantic 2.55%
Communications
- ---------------------------------------------------------
Illinois Tool Works 2.50%
Industrial
- ---------------------------------------------------------
GTE 2.37%
Communications
- ---------------------------------------------------------
Bristol Myers Squibb 1.88%
Pharmaceutical
- ---------------------------------------------------------
General Electric 1.87%
Industrial
- ---------------------------------------------------------
Merck & Co 1.87%
Pharmaceutical
- ---------------------------------------------------------
Abbott Labs 1.86%
Pharmaceutical
- ---------------------------------------------------------
Berkshire Hathaway Class B 1.82%
Financial Diversified
- ---------------------------------------------------------
Amgen 1.82%
Pharmaceuticals
- ---------------------------------------------------------
- -------------------------------------------------------------------------------
<PAGE>
Thomas White American Growth Fund
(Ticker: TWAGX)
The American Growth Fund had a strong start. The Fund posted a gain of
20.3% since it began operation on November 2, 1998. The S&P 500 returned 22.4%
over the same period.
Our investment approach is proving its worth. This strategy selects the
most undervalued stocks across every major American industry. Over the last six
months, the Fund's top ten performing stocks came from eight different
industries. We employ this industry diversification to best ensure portfolio
stability and superior returns over the long-term.
The Fund's diversification is confirmed by analyzing its top ten
holdings. According to Morningstar, the average US large cap fund held 37.3% of
their assets in its top ten positions.1 The Growth Fund had only 21.3% of its
assets invested in its ten largest positions.
TJX (consumer retail), Alcoa (metals), Frontier Corp. (communications),
and America Online (technology) proved to be exceptional selections for the
Fund. TJX has emerged as a leader in the retail industry, providing their
customers with exceptional values. Alcoa, the world's largest aluminum producer,
benefitted from signs of an improving global economy. Frontier Corp. is in the
midst of the acquisition frenzy occurring in the telecommunication market, and
is currently considering takeover bids from Global Crossing and Qwest. America
Online continues to lead the dynamic and fast growing Internet sector.
A fund's tax efficiency is an important advantage for the taxable
investor. We are proud that our performance for the first six months was
attained without incurring any realized capital gains.
The Fund's strong returns are driven by our research organization, the
Global Capital Institute. The exceptional accuracy of their security analysis
produces an ongoing flow of attractive investment opportunities. Moreover, three
additional professionals, each with a Ph.D. degree, are joining the Institute
this year.
1Data is the most recently available from Morningstar Principia (5/31/99). The
average was of the 1,974 funds that Morningstar categorized as large-cap.
<PAGE>
PERFORMANCE AT A GLANCE
- ---------------------------------------------------------
THOMAS WHITE AMERICAN GROWTH FUND
INDUSTRY DISTRIBUTION
ON APRIL 30, 1999
BASED ON LONG-TERM SECURITIES
- ---------------------------------------------------------
Aerospace 1.2%
Banking 8.5%
Building 0.4%
Capital Goods 1.0%
Chemicals 2.7%
Communication 9.1%
Consumer Durables 2.6%
Consumer Retail 5.7%
Consumer Staple 10.6%
Energy 6.0%
Financial Diversified 5.8%
Health Care 8.4%
Industrial 8.6%
Insurance 6.1%
Metals 0.7%
Services 8.1%
Technology 9.8%
Transportation 0.5%
Utilities 4.2%
- ---------------------------------------------------------
Total 100.0%
- ---------------------------------------------------------
- ------------------------------------------------------------
Relative Performance American S&P 500 Russell
April 30, 1999 Growth 1000
- ------------------------------------------------------------
One Month 5.9% 4.7% 4.7%
Year-to-Date 1999 7.1% 9.0% 8.5%
Cumulative Total Return 20.3% 22.4% 22.5%
Since Inception
(November 1, 1998)
- --------------------------------------------------------------------------------
The S&P 500 is a market -weighted index of the largest 500 companies. Russell
1000 Index measures the performance of the 1,000 largest companies in the
Russell 3000 Index. It represents approximately 89% of the total market
capitalization of the Russell 3000 Index. All indices are unmanaged and returns
assume the reinvestment of dividends.
- --------------------------------------------------------------------------------
<PAGE>
The American Growth Fund
vs
the S&P 500
November 1, 1998 (Inception) to April 30, 1999
The current value of an initial $10,000 investment
with dividend reinvested.
[GRAPHIC OMITTED]
Past performance does not guarantee future results. The investment return and
principal value of an investment in the Fund will fluctuate so that Fund shares,
when redeemed, may be worth more or less than their original cost.
[side bar]
- --------------------------------------------------------------------------------
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THOMAS WHITE AMERICAN
OPPORTUNITIES FUND
TOP TEN HOLDINGS
ON APRIL 30, 1999
BASED ON TOTAL NET ASSETS
- ---------------------------------------------------------
Company % of Total
Industry Net Assets
- ---------------------------------------------------------
Frontier Corp 1.41%
Communications
- ---------------------------------------------------------
Cincinnati Bell 1.08%
Communications
- ---------------------------------------------------------
GTE 1.04%
Communications
- ---------------------------------------------------------
The Sabre Corp 0.99%
Services
- ---------------------------------------------------------
America Online 0.95%
Technology
- ---------------------------------------------------------
Mellon Bank 0.91%
Banking
- ---------------------------------------------------------
Tosco Corp 0.89%
Energy
- ---------------------------------------------------------
Marriott Int'l 0.89%
Services
- ---------------------------------------------------------
Black & Decker 0.89%
Consumer Durables
- ---------------------------------------------------------
National City 0.89%
Banking
- ---------------------------------------------------------
- --------------------------------------------------------------------------------
Thomas White American Opportunities Fund
(Ticker: TWAOX)
The Opportunities Fund began on March 4, 1999. It has the same valuation
driven investment style as our large-cap American Growth Fund, but owns a much
broader range of stocks. Most of these stocks are mid-cap and small-cap
companies. Given that our research professionals regularly value 1,800 American
companies, this Fund allows us to take full advantage of every investment
opportunity we discover, not just the large caps.
The Fund's objective is to outperform the more popular large-cap indices
over time, but since its stocks are equally divided between the large cap,
mid-cap and small-cap groupings, we shall use the Russell Midcap Index as a
benchmark. When space allows, we will also use a large-cap benchmark (the S&P
500) and a small-cap benchmark (the Russell 2000).
With less than two months since inception, the Fund has returned 7.9%.
This compares with 7.3% for the S&P 500, 11.0% for the Russell Midcap and 10.7%
for the Russell 2000.
The Fund currently has 193 of our best investment ideas. A number of the
Fund's stocks are already bearing fruit after just several months. Forty-four of
the Fund's holdings increased by 20% or more through April 30th.
The Opportunities Fund was started at what may be the beginning of a
performance shift away from larger stocks. Investors seem to be realizing that
after four years of underperformance, there are many bargain-priced smaller
companies.
<PAGE>
The performance of the Opportunities Fund will probably be more volatile
than that of its large brother, the Growth Fund. This is because smaller-cap
stocks tend to rise and fall more than larger companies. The good news is that
smaller-cap stocks tend to outperform larger companies over time. We will
attempt to moderate this volatility in the following four ways.
First, we will use broad company diversification. This will reduce the
higher risk inherent in companies with less substance.
Second, we will own stocks in all three capitalization classes. This will
stabilize the Fund's performance when small-caps are out of favor and perform
badly. Size diversification should also moderate down market performance, when
smaller-cap stocks tend to underperform.
Third, we will use broad industry diversification. This moderates the
portfolio's exposure to business cycle extremes.
Fourth, we will predominately use a valuation-oriented stock selection
approach, which traditionally produces lower portfolio volatility.
PERFORMANCE AT A GLANCE
- ---------------------------------------------------------
THOMAS WHITE AMERICAN
OPPORTUNITIES FUND
INDUSTRY DISTRIBUTION
ON APRIL 30, 1999
BASED ON LONG-TERM SECURITIES
- ---------------------------------------------------------
- ---------------------------------------------------------
Aerospace 0.2%
Banking 9.5%
Building 0.8%
Capital Goods 4.2%
Chemicals 4.0%
Communication 4.8%
Consumer Durables 3.8%
Consumer Retail 4.8%
Consumer Staple 7.9%
Energy 6.1%
Financial Diversified 4.3%
Forest & Paper
1.0%
Health Care 6.7%
Industrial 15.3%
Insurance 4.3%
Metals 0.4%
Services 11.4%
Technology 6.2%
Transportation 0.5%
Utilities 3.8%
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Total 100.0%
- ---------------------------------------------------------
As of April 30th, the Fund's wide diversification was reflected by the fact
that its top ten holdings represented just 9.9% of total assets. This compares
to the Morningstar average of all mid-cap funds of 37.7%.1
1Data is the most recently available from Morningstar Principia (5/31/99). The
average was of the 950 funds that Morningstar categorized as mid-cap.
- --------------------------------------------------------------------------------
Amer. Russell Russell Russell
Relative Oppor. 1000 800 2000
Performance Fund Lrg-Cap Midcap Sm-Cap
April 30, 1999
- --------------------------------------------------------------------------------
One Month 8.0% 4.7% 7.4% 9.0%
Cumulative 7.9% 9.0% 11.1% 10.7%
Total Return
Since Inception
(March 4, 1999)
- --------------------------------------------------------------------------------
Russell 1000 Index measures the performance of the 1,000 largest companies in
the Russell 3000 Index. It represents approximately 89% of the total market
capitalization of the Russell 3000 Index. Russell Midcap Index measures the
performance of the 800 smallest companies in the Russell 1000 Index. These
represent approximately 31% of the total market capitalization of the Russell
3000 Index. Russell 2000 Index measures the performance of the 2,000 smallest
companies in the Russell 3000 Index. This represents approximately 11% of the
total market capitalization of the Russell 3000 Index. All indices are unmanaged
and returns assume the reinvestment of dividends.
- --------------------------------------------------------------------------------
<PAGE>
The American Opportunities Fund
vs
the Russell Midcap Index
March 4, 1999 (Inception) to April 30, 1999
The current value of an initial $10,000 investment with
dividend reinvested.
[GRAPHIC OMITTED]
Past performance does not guarantee future results. The investment return and
principal value of an investment in the Fund will fluctuate so that Fund shares,
when redeemed, may be worth more or less than their original cost.
- ------------------------------------------------------------------------------------------------------
THE TWENTY-NINE YEAR PERFORMANCE OF
THE INTERNATIONAL EQUITY MARKET AND
ITS MAJOR REGIONAL COMPONENTS
- -------------------------------------------------------------------------------------------------------
THESE INDEX RETURNS ARE IN U.S. DOLLARS. FIVE-YEAR REGIONAL
MSCI INDICES Gross PERFORMANCE SUCCESS IS NUMBERED FROM #1 (BEST) TO #5 (WORST).
- --------------------------------------------------------------------------------------------------------
PERIOD: Jan. 1, 1970 PACIFIC EMERGING
tp Apr. 30, 1999 INT'L CANADA EUROPE JAPAN EX JAPAN MARKETS
FIVE-YEAR
PERIOD RETURNS
- --------------------------------------------------------------------------------------------------------
1970-1974 3.3% 4.6%(#2) -0.9%(#3) 16.0%(#1) -6.2%(#4) N/A
1975-1979 19.0% 17.9%(#4) 18.9%(#2) 18.8%(#3) 27.5%(#1) N/A
1980-1984 9.5% 6.7%(#2) 6.1%(#3) 17.0%(#1) 4.1%(#4) N/A
1985-1989 35.6% 16.9%(#4) 32.3%(#2) 41.4%(#1) 22.4%(#3) 65.8%
1990-1994 2.4% 0.1%(#4) 7.0%(#3) -3.4%(#5) 15.3%(#1) 9.5%
1995-1999 (4/30) 8.9% 16.4%(#2) 22.4%(#1) -4.9%(#5) 2.6%(#3) -4.6%
- --------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------
1970-1999 12.7% 10.1% 13.6% 13.6% 10.5% N/A
1988-1999 8.0% 9.8% 15.4% -0.6% 11.5% 11.8%
- --------------------------------------------------------------------------------------------------------
The table above presents the performance of the international stock
markets from January 1, 1970 to April 30, 1999. Returns are shown in a series of
five-year periods, except for the current four-year plus period. The
international returns are followed by those of the world's regions.
Regional performances are highlighted using ranks from #1 (best) to #5
(worst) to indicate the winners and losers in each five-year period. History
shows regional returns are random in their timing, with no area holding a
permanent monopoly on performance.
Note that the international market and its territories all have quite
similar long-term records. But observe the international index has a more stable
return pattern than any of its components. This is because regional bull and
bear markets tend to offset one another.
The Fund's design reflects your manager's belief that shareholders will
benefit from smoother international performance. A more stable portfolio
encourages investors to stay the course in falling market environment. This
promotes success in reaching long-term investment goals.
The MSCI developed country gross dividends return series is used for
Europe, Canada, Japan and the Pacific less Japan. The MSCI emerging markets
gross dividends return series starts on January 1, 1988. International returns
reflect the MSCI World less US index until the MSCI All-Country less US index
starts on January 1, 1988. World less US and All-Country World less US returns
are linked across the 1970-1999 period.
<PAGE>
[side bar]
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THOMAS WHITE INTERNATIONAL FUND
TOP TEN HOLDINGS
ON APRIL 30, 1999
BASED ON TOTAL NET ASSETS
--------------------------------------------------------
Company % of Total
Industry, Country Net Assets
--------------------------------------------------------
Berkshire CL A 1.9%
Financial Diversified, United States
--------------------------------------------------------
Amgen 1.3%
Pharmaceutical, United States
--------------------------------------------------------
Chase Manhattan 1.2%
Banking, United States
--------------------------------------------------------
HSBC Holdings 1.1%
Banking, Hong Kong
--------------------------------------------------------
British Telecom 1.1%
Communications, United Kingdom
--------------------------------------------------------
General Electric 1.1%
Industrial, United States
--------------------------------------------------------
Elf-Aquitaine 1.0%
Energy, France
--------------------------------------------------------
Dow Chemical Co. 1.0%
Chemical, United States
--------------------------------------------------------
Safeway Inc. 1.0%
Consumer Staples, United States
--------------------------------------------------------
Natl West Bank plc 1.0%
Banking, United Kingdom
--------------------------------------------------------
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Thomas White International Fund
(formerly the Thomas White World Fund)
(Ticker: TWWDX)
The International Fund was up 13.8% for the first half of its fiscal
year. Since inception in June of 1994 the Fund's hallmark has been smooth,
consistent performance. This has resulted from careful diversification across
countries and industries. On April 30, the Fund held 230 companies in 35
countries.
Over the last six months, sixty-four securities in the portfolio rose in
value over 30%, while only two fell by the same margin.. Forty-seven of the
winners were foreign stocks.
The global financial turmoil climaxed in the Fall of 1998; with a slow
but steady recovery now occurring. The majority of the Fund's gains came from a
strong rebound in Japan and the emerging market countries. Continued strength in
the US also added value. The weak European markets, most notably France, Spain
and Switzerland, restrained performance. The sluggish continental economy and
its weak Euro currency were the culprits. The Euro, the new common currency for
11 European countries, has fallen sharply since its initiation on January 1st.
The Fund did well versus other world and foreign funds, but
underperformed its world benchmarks over the last 12 months. The Fund's
underweight in the U.S. versus the index's heavy 53% concentration, explains the
performance shortfall.
As of May 31st, the Fund had a **** Morningstar ranking (the Fund was
ranked among 982 international equity funds for the 3 year period ending May 31,
1999)1 and has garnered a **** ranking since July 1997. This indicates that the
Fund has stayed in the top third of international mutual funds in terms of its
trailing three-year risk adjusted performance. Just as important, the Fund has
maintained an attractive Morningstar risk rating with a standard deviation that
is in the top 14% of international funds. 2 This indicates that the Fund has had
lower volatility and superior downside performance than comparable funds over
the last three years.
The International Fund can now be used in asset allocation strategies
because it is a foreign, not global fund. The Fund will continue to own the most
undervalued securities around the world, but its U.S. holdings will stay well
below 10%.
<PAGE>
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THOMAS WHITE INTERNATIONAL FUND
GEOGRAPHIC DISTRIBUTION
ON APRIL 30, 1999
BASED ON LONG-TERM SECURITIES
---------------------------------------------------------
---------------------------------------------------------
CONTINENTAL EUROPE 33.9%
UNITED KINGDOM 12.2%
AFRICA & MIDDLE EAST 0.7%
CANADA 2.0%
UNITED STATES 31.6%
LATIN AMERICA 2.5%
JAPAN 6.0%
FAR EAST 7.3%
AUSTRALIA & NEW ZEALAND 3.8%
--------------
Total 100.0%
---------------------------------------------------------
DEVELOPED MARKETS 93.1%
EMERGING MARKETS 6.9%
--------------
Total 100.0%
---------------------------------------------------------
An interim long-term capital gains distribution was declared on May 3,
1999. This was due to the strong performance of the Fund's U.S. holdings and was
done to allow shareholders to effectively plan their 1999 taxes. Management
anticipates that in most future years, the Fund will only declare capital gain
distributions annually in December.
- -----------------------------------------------------
DISTRIBUTIONS
- ------------------------------------------------------
1998 Interim 1999*
Ordinary Income $ 0.1294 $
Short-Term Capital Gain --------- --------
Long-Term Capital Gain 0.9076 1.6304
--------- --------
Total Per Share $ 1.0370 $ 1.6304
====== =======
- ------------------------------------------------------
1) Past performance is not a prediction or guarantee of future results.
The investment return and principal value of an investment will fluctuate and an
investor's shares, when redeemed, may be worth more or less than their original
cost. Data is the most recently available from Morningstar Principia (5/31/99).
Morningstar proprietary rankings reflect historical risk-adjusted performance.
The rankings are subject to change every month. Morningstar rankings are
calculated from the funds' three-, five-, and ten-year average annual returns
(if applicable) in excess of 90-day Treasury bill returns with appropriate fee
adjustments, and a risk factor that reflects fund performance below 90-day
T-bill returns. The Fund received 4 stars for the three year period. 10% of the
funds in a category receive 5 stars, 22.5% receive 4 stars, 35% receive 3 stars,
22.5% receive 2 stars, and 10% receive 1 star. The fund was rated among 982
international equity funds for the 3 year period.
2) Standard Deviation measures how widely the returns varied for a
specific fund over a certain period of time. When a fund has a high standard
deviation, the predicted range of performance is wide, implying greater
volatility. Data is the most recently available from Morningstar Principia
(5/31/99). The World Fund's standard deviation ranked 118 out of 982
international equity funds during the period covered. This past standard
deviation rank is not predictive of future results which may vary due to, among
other things, the Fund's recent change of focus to emphasize primarily non-U.S.
issuers.
<PAGE>
PERFORMANCE AT A GLANCE
The International Fund
vs
the MSCI World and Morningstar World Funds Indices
June 28, 1994 to April 30, 1999
[GRAPHIC OMITTED]
The above chart presents performance in terms of an initial $10,000 investment
in the Fund, assuming all dividends reinvested, and various benchmarks. The
return since inception was 88.8% for the Fund, 115.8% for the MSCI World Index,
109.2% for the MSCI All Country Index and 81.0% for the Morningstar World Funds
Index. The one year return for the Fund was 6.4%. The Fund's average annual
total return since inception was 14.0%. MSCI World Index is with net dividends.
Morningstar World Funds Index is from July 1, 1994.
Past performance does not guarantee future results. The investment return and
principal value of an investment in the Fund will fluctuate so that Fund shares,
when redeemed, may be worth more or less than their original cost.
The International Fund vs all of its Benchmarks
- --------------------------------------------------------------------------------------------------------------------------
Thomas Morningstar MSCI Morningstar MSCI
White World All Foreign All Country
Relative Performance Int'l Stock Country MSCI Stock World
April 30, 1999 Fund Funds World World Funds ex US
- --------------------------------------------------------------------------------------------------------------------------
Six Months 13.78% 17.63% 20.51% 19.58% 16.90% 15.56%
One Year 6.42% 3.83% 15.09% 15.96% 2.19% 8.83%
Three Years 13.72% 11.99% 17.25% 18.19% 9.38% 9.04%
Average Annual Return 14.00% 13.07% 16.47% 17.22% 8.78% 9.08%
Since Inception (June 28, 1994)
Cumulative Total Return 88.80% 81.04% 109.21% 115.80% 50.22% 52.24%
Since Inception (June 28, 1994)
- --------------------------------------------------------------------------------------------------------------------------
Morningstar World Stock category represents 278 world stock mutual funds. This
series starts July 1, 1994. MSCI All Country World is a compilation of the
market indices for 47 developed and emerging market countries. The MSCI World
Index represents the indices for the top 22 developed countries. Morningstar
Foreign Stock category representing 634 foreign diversified mutual funds. The
MSCI All Country World ex US represents the same countries as the All Country
Index except it does not include the U.S. All indices are unmanaged and returns
assume the reinvestment of dividends. The International Fund also assumes the
reinvestment of dividends and capital gains distributions.
<PAGE>
The Thomas White International Fund is designed to benefit from
the positive changes occurring in the world.
These forty-seven countries contain over 2,400 companies that meet the
Fund's quality standards. Each shareholder, is a partial owner of 230 of the
most undervalued of these firms. International Fund Shareholders are at the very
epicenter of what is driving change in today's world: An unprecedented explosion
of highly beneficial global capitalism.
- --------------------------------------------------------------------------------
DEVELOPED MARKETS
- ---------------- PACIFIC LATIN AMERICA
EUROPE Australia Argentina
Austria Hong Kong Brazil
Belgium Japan Chile
Denmark New Zealand Colombia
Finland Sinapore Mexico
German Peru
Ireland EMERGING MARKETS Venezuela
Italy ----------------
Netherlands GREATER EUROPE
Norway Czech Republic INDIAN SUBCONTINENT
Spain Greece India
Sweden Poland Sri Lanka
Switzlerland Portugal
United Kingdom Russia FAR EAST
Turkey China
Indonesia
NORTH AMERICA MIDDLE EAST Korea
Canada Israel Malaysia
United States Philippines
AFRICA Taiwan
South Africa Thailand
- --------------------------------------------------------------------------------
The Fund takes full advantage of the extensive resources of the Global
Capital Institute. This investment research organization is owned by Thomas
White International, the Fund's manager. The Institute's professionals do
on-going valuation-based security analysis of companies in forty-seven
countries. Its monthly equity valuation publications are produced for clients
who are asset management organizations located around the world.
<PAGE>
THOMAS WHITE AMERICAN GROWTH FUND
Investment Portfolio April 30, 1999
- ---------------------------------------------------------------------------------------------------------------------------------
Industry
Issue Shares Value
- ---------------------------------------------------------------------------------------------------------------------------------
Common Stocks (99.3%)
- ------------------------------------------------
Aerospace (1.3%)
General Dynamics Corporation 300 $21,075
Raytheon Co. 300 21,075
------------
42,150
Banking (8.5%)
AmSouth Bancorporation 500 23,781
Chase Manhattan Corporation 500 41,375
Comerica Inc. 600 39,038
First Union Corporation 300 16,613
Fleet Financial Group, Inc. 800 34,450
KeyCorp 300 9,281
Mellon Bank Corporation 400 29,725
PNC Bank Corporation 800 46,300
UnionBanCal Corporation 600 20,475
Wachovia Corporation 300 26,362
------------
287,400
Building (0.4%)
Vulcan Materials Co. 300 14,325
Capital Goods (1.0%)
Caterpillar Inc. 500 32,187
Chemicals (2.7%)
Dow Chemical Co. 400 52,475
IMC Global Inc. 300 7,500
PPG Industries, Inc. 500 32,469
------------
92,444
Communications (9.0%)
Bell Atlantic Corporation 1,500 86,437
Cincinnati Bell Inc. 700 15,838
Frontier Corporation 500 27,594
GTE Corporation 1,200 80,325
U S WEST, Inc. 1,800 94,162
------------
304,356
Consumer Durables (2.6%)
Ford Motor Co. 700 44,756
Goodyear Tire & Rubber Co. 400 22,875
Maytag Corporation 300 20,513
------------
88,144
Consumer Retail (5.7%)
Federated Department Stores, Inc.* 500 23,344
The Gap, Inc. 500 33,281
Intimate Brands, Inc. 700 35,000
Lowe's Companies, Inc. 600 31,650
TJX Companies, Inc. 900 29,981
VF Corporation 400 20,600
Wal-Mart Stores, Inc. 400 18,400
------------
192,256
Consumer Staples (10.5%)
Albertson's, Inc. 300 15,450
Clorox Co. 400 46,150
ConAgra, Inc. 1,600 39,800
CVS Corporation 1,200 57,150
Fred Meyer, Inc.* 300 16,238
H.J. Heinz Co. 900 42,019
Phillip Morris Companies Inc. 1,100 38,569
Quaker Oats Co. 400 25,825
Safeway Inc.* 300 16,181
Sara Lee Corporation 1,700 37,825
Walgreen Co. 800 21,500
------------
<PAGE>
THOMAS WHITE AMERICAN GROWTH FUND
Investment Portfolio April 30, 1999
- ---------------------------------------------------------------------------------------------------------------------------------
Industry
Issue Shares Value
- ---------------------------------------------------------------------------------------------------------------------------------
356,707
Energy (5.9%)
Ashland Inc. 200 8,450
Coastal Corporation 400 15,300
Conoco Inc. Class A 500 13,563
Consolidated Natural Gas Co. 300 17,850
Exxon Corporation 600 49,837
Phillips Petroleum Co. 700 35,438
Royal Dutch Petroleum Co. 700 41,081
Texaco Inc. 300 18,825
------------
200,344
Financial Diversified (5.7%)
American Express Co. 200 26,137
Capital One Financial Corporation 300 52,106
Citigroup Inc. 400 30,100
Fannie Mae 500 35,469
Freddie Mac 400 25,100
Lehman Brothers Holdings Inc. 100 5,556
Morgan Stanley Dean Witter & Co. 200 19,838
------------
194,306
Health Care (8.3%)
Abbott Laboratories 1,300 62,969
Amgen Inc.* 1,000 61,437
Bristol-Myers Squibb Co. 1,000 63,562
Eli Lilly and Co. 200 14,725
HEALTHSOUTH Corp.* 600 8,063
McKesson HBOC, Inc. 200 7,000
Merck & Co., Inc. 900 63,225
------------
280,981
Industrial (8.5%)
AlliedSignal Inc. 600 35,250
Cooper Industries, Inc. 400 19,350
Eastman Kodak Co. 400 29,850
General Electric Co. 600 63,300
Illinois Tool Works Inc. 1,100 84,700
Rockwell International Corporation 600 30,975
TRW Inc. 600 25,163
------------
288,588
Insurance (6.1%)
Ace Limited 800 24,200
Allstate Corporation 700 25,462
American International Group, Inc. 300 35,231
Berkshire Hathaway Class B* 25 61,750
Conseco, Inc. 800 25,250
MBIA Inc. 400 26,900
XL Capital Ltd. 100 6,069
------------
204,862
Metals (0.7%)
Alcoa Inc. 400 24,900
Services (8.0%)
Cox Communications, Inc.* 100 7,938
FDX Corporation* 300 33,769
Marriott International, Inc. 700 29,313
New York Times Co. 700 24,150
Royal Caribbean Cruises Ltd. 800 29,550
SABRE Group Holdings, Inc.* 600 31,275
Time Warner Inc. 600 42,000
TRICON Global Restaurants, Inc.* 200 12,875
Viacom Inc. Class B* 900 36,786
Xerox Corporation 400 23,500
------------
<PAGE>
THOMAS WHITE AMERICAN GROWTH FUND
Investment Portfolio April 30, 1999
- ---------------------------------------------------------------------------------------------------------------------------------
Industry
Issue Shares Value
- ---------------------------------------------------------------------------------------------------------------------------------
271,156
Technology (9.7%)
America Online, Inc.* 200 28,550
Compuware Corporation* 400 9,750
Conexant Systems, Inc.* 200 8,150
Dell Computer Corporation* 400 16,475
EMC Corporation* 400 43,575
Intel Corporation 800 48,950
Lucent Technologies Inc. 600 36,075
Microsoft Corporation* 400 32,525
Oracle Corporation* 400 10,825
Unisys Corporation* 1,300 40,869
Yahoo! Inc.* 300 52,406
------------
328,150
Transportation (0.5%)
Burlington Northern Santa Fe Corporation 500 18,312
Utilities (4.2%)
Carolina Power &Light Co. 800 32,250
DTE Energy Co. 700 28,569
Edison International 1,000 24,500
FPL Group, Inc. 600 33,825
PG&E Corporation 700 21,744
------------
140,888
------------
Total Common Stocks (Cost $3,112,594) 3,362,456
- ----------------------------------------------------------------------------------------------------------------------
Short-Term Obligations (0.6%)
Wisconsin Corp Central Credit Union Variable
Demand Note 4.57%, due 7/13/99 (Cost $22,038) 22,038
- ----------------------------------------------------------------------------------------------------------------------
Total Investments: 99.9% 3,384,494
------------
Other Assets, Less Liabilities: 0.1% 2,821
----- ============
Total Net Assets: 100.0% $3,387,315
========== ============
* Non-Income Producing Securities
See Notes to Financial Statements.
<PAGE>
THOMAS WHITE AMERICAN OPPORTUNITIES FUND
Investment Portfolio April 30, 1999
- -----------------------------------------------------------------------------------------------------
Industry
Issue Shares Value
- -----------------------------------------------------------------------------------------------------
Common Stocks (99.7%)
- ---------------------------------------------------
Aerospace (0.2%)
General Dynamics Corporation 300 $21,075
Banking (9.5%)
AmSouth Bancorporation 1,500 71,344
BancWest Corporation 1,800 71,662
Chase Manhattan Corporation 900 74,475
Comerica Inc. 1,100 71,569
Cullen/Frost Bankers, Inc. 800 43,150
Fleet Financial Group, Inc. 1,700 73,206
Hibernia Corporation 4,600 61,237
Imperial Bancorp* 2,500 48,125
Mellon Bank Corporation 1,100 81,744
National City Corporation 1,100 78,925
North Fork Bancorporation, Inc. 2,000 45,000
UnionBanCal Corporation 2,300 78,487
Wachovia Corporation 600 52,725
-------------
851,649
Building (0.8%)
Fleetwood Enterprises, Inc. 700 17,281
USG Corporation 400 23,350
Vulcan Materials Co. 600 28,650
-------------
69,281
Capital Goods (4.2%)
Briggs & Stratton Corporation 600 39,562
Caterpillar Inc. 800 51,500
Donaldson Company, Inc. 1,700 38,037
Graco Inc. 1,500 47,250
Kaydon Corporation 1,200 40,500
Lincoln Electric Holdings, Inc. 1,500 30,937
Manitowoc Company, Inc. 1,200 45,750
Tennant Co. 900 30,825
York International Corporation 1,300 53,625
-------------
377,986
Chemicals (4.0%)
BF Goodrich Co. 1,200 47,700
Crompton & Knowles Corporation 1,600 32,400
Cytec Industries Inc.* 1,000 28,438
Dow Chemical Co. 300 39,356
Ferro Corporation 1,200 33,225
IMC Global Inc. 1,400 35,000
PPG Industries, Inc. 800 51,950
Solutia Inc. 1,400 34,125
Union Carbide Corporation 500 25,937
W.R. Grace & Co.* 2,100 33,468
-------------
361,599
Communications (4.8%)
Cellular Communications of Puerto Rico, Inc.* 1,500 35,625
Cincinnati Bell Inc. 4,300 97,287
Frontier Corporation 2,300 126,931
GTE Corporation 1,400 93,713
U S WEST, Inc. 1,500 78,469
-------------
432,025
Consumer Durables (3.8%)
Arvin Industries, Inc. 600 21,975
Black & Decker Corporation 1,400 79,450
Dana Corporation 500 23,563
Ford Motor Co. 400 25,575
Gentex Corporation* 1,700 51,106
Goodyear Tire & Rubber Co. 400 22,875
Maytag Corporation 400 27,350
Meritor Automotive, Inc. 1,400 29,663
Navistar International Corporation* 500 26,156
PACCAR Inc. 500 28,000
-------------
335,713
<PAGE>
THOMAS WHITE AMERICAN OPPORTUNITIES FUND
Investment Portfolio April 30, 1999
______________________________________________________________________________________________________
Industry
Issue Shares Value
- -----------------------------------------------------------------------------------------------------
Consumer Retail (4.7%)
Dayton Hudson Corporation 1,000 67,313
Intimate Brands, Inc. 1,400 70,000
Liz Claiborne, Inc. 1,900 62,819
Ross Stores, Inc. 1,300 59,719
VF Corporation 1,300 66,950
Wal-Mart Stores, Inc. 1,400 64,400
Zale Corporation* 900 34,031
-------------
425,232
Consumer Staples (7.8%)
Alberto-Culver Co. CL A 2,700 61,087
Brown Forman Corporation 900 66,319
Canandaigua Brands, Inc.* 1,000 51,500
ConAgra, Inc. 2,000 49,750
CVS Corporation 1,300 61,913
Fred Meyer, Inc.* 1,000 54,125
Hannaford Bros. Co. 1,100 47,988
Helen of Troy Limited* 2,800 39,200
IBP, Inc. 3,000 60,750
Longs Drug Stores Corporation 1,700 58,437
Phillip Morris Companies Inc. 1,300 45,581
SUPERVALU Inc. 2,500 52,187
UST Inc. 1,900 52,962
-------------
701,799
Energy (6.1%)
Ashland Inc. 1,500 63,375
Coastal Corporation 1,800 68,850
Columbia Energy Group 1,200 57,675
Exxon Corporation 900 74,756
Mitchell Energy/Dev'b' 3,000 46,125
Phillips Petroleum Co. 1,500 75,937
Royal Dutch Petroleum Co. 1,300 76,294
Tosco Corporation 3,000 80,250
-------------
543,262
Financial Diversified (4.3%)
A.G. Edwards, Inc. 700 24,500
AMCORE Financial, Inc. 1,600 33,600
Capital One Financial Corporation 300 52,106
Citigroup Inc. 600 45,150
Countrywide Credit Industries, Inc. 900 40,781
Fannie Mae 500 35,469
Freddie Mac 600 37,650
John Nuveen Co. 900 35,775
Morgan Stanley Dean Witter & Co. 400 39,675
T. Rowe Price Associates, Inc. 1,100 41,456
-------------
386,162
Forest & Paper (1.0%)
Mead Corporation 800 33,450
Wausau-Mosinee Paper Corporation 1,500 24,750
Weyerhaeuser Co. 400 26,850
-------------
85,050
Health Care (6.7%)
Abbott Laboratories 1,400 67,813
Allergan, Inc. 500 44,937
Arrow International, Inc. 1,900 42,750
Bergen Brunswig Corporation 2,100 39,900
Biogen, Inc.* 400 38,025
Bristol-Myers Squibb Co. 900 57,206
CIGNA Corporation 500 43,594
DENTSPLY International Inc. 1,500 39,281
Humana Inc.* 2,000 27,250
Merck & Co., Inc. 800 56,200
Mylan Laboratories Inc. 1,300 29,494
Orthodontic Centers of America, Inc.* 2,300 28,462
PacifiCare Health Systems, Inc.* 500 39,891
Tenet Healthcare Corporation* 2,000 47,250
-------------
602,053
<PAGE>
THOMAS WHITE AMERICAN OPPORTUNITIES FUND
Investment Portfolio April 30, 1999
______________________________________________________________________________________________________
Industry
Issue Shares Value
- ------------------------------------------------------------------------------------------------------
Industrial (15.3%)
AlliedSignal Inc. 900 52,875
AptarGroup, Inc. 1,400 39,200
Baldor Electric Co. 1,900 36,694
C&D Technologies, Inc. 1,500 38,719
CLARCOR Inc. 2,200 41,250
Cooper Industries, Inc. 1,000 48,375
Crane Co. 1,600 46,300
Dionex Corporation* 1,000 41,000
Eastman Kodak Co. 700 52,238
GATX Corporation 1,000 34,375
GenCorp Inc. 2,200 50,875
General Electric Co. 400 42,200
Harris Corporation 1,400 48,388
Hillenbrand Industries, Inc. 1,000 46,938
Hubbell Inc. 1,100 52,594
Illinois Tool Works Inc. 800 61,600
Johnson Controls, Inc. 700 51,056
Littelfuse, Inc.* 2,100 42,262
Myers Industries, Inc. 2,000 45,250
National Service Industries, Inc. 1,000 38,938
Pentair, Inc. 1,200 56,400
Plantronics, Inc.* 600 40,500
Plexus Corporation* 1,100 36,713
Rockwell International Corporation 1,000 51,625
Thomas & Betts Corporation 1,100 46,200
Timken Co. 1,700 37,931
Trinity Industries, Inc. 1,400 48,738
TRW Inc. 900 37,744
Varlen Corporation 1,000 28,000
W.W. Grainger, Inc. 1,500 75,281
-------------
1,370,259
Insurance (4.3%)
Allstate Corporation 1,100 40,013
Ambac Financial Group, Inc. 700 42,263
American International Group, Inc. 300 35,231
American National Insurance Co. 400 27,750
Arthur J. Gallagher & Co. 500 23,750
Berkshire Hathaway Class B* 15 37,050
Conseco, Inc. 1,200 37,875
Everest Reinsurance Holdings, Inc. 1,100 33,344
Fidelity National Financial, inc. 900 16,425
First American Financial Corporation 1,200 21,450
HCC Insurance Holdings, Inc. 1,000 21,125
LandAmerica Financial Group, Inc. 500 14,000
Old Republic International Corporation 1,900 37,169
-------------
387,445
Metals (0.4%)
Alcoa Inc. 600 37,350
Services (11.4%)
Bob Evans Farms, Inc. 1,700 31,131
Brinker International, Inc.* 1,400 38,675
Consolidated Graphics, Inc.* 700 29,838
Deluxe Corporation 2,000 69,250
Diebold, Inc. 2,400 57,750
Grey Advertising Inc. 100 32,294
Knight Ridder 1,300 69,956
Marriott International, Inc. 1,900 79,562
Pre-Paid Legal Services, Inc.* 1,400 39,900
Royal Caribbean Cruises Ltd. 2,000 73,875
SABRE Group Holdings, Inc.* 1,700 88,612
TCA Cable TV, Inc. 400 19,925
Time Warner Inc. 500 35,000
Times Mirror Co. 1,200 70,200
TRICON Global Restaurants, Inc.* 1,100 70,813
True North Communications Inc. 1,600 43,200
United Stationers Inc. 2,200 37,537
Valassis Communications, Inc.* 700 39,200
Viacom Inc. Class B* 600 24,525
Xerox Corporation 1,200 70,500
-------------
1,021,743
<PAGE>
THOMAS WHITE AMERICAN OPPORTUNITIES FUND
Investment Portfolio April 30, 1999
______________________________________________________________________________________________________
Industry
Issue Shares Value
- ------------------------------------------------------------------------------------------------------
Technology (6.2%)
America Online, Inc.* 600 85,650
Apple Computer, Inc.* 1,400 64,400
EMC Corporation* 500 54,469
Intel Corporation 800 48,950
Lexmark International Group, Inc.* 500 61,750
Microchip Technology Inc.* 1,400 49,000
Microsoft Corporation* 600 48,788
Oracle Corporation* 1,400 37,888
Unisys Corporation* 1,700 53,444
Yahoo! Inc.* 300 52,406
-------------
556,745
Transportation (0.5%)
Burlington Northern Santa Fe Corporation 600 21,975
Union Pacific Corporation 400 24,000
-------------
45,975
Utilities (3.7%)
Boston Edison Co. 1,000 42,500
Carolina Power & Light Co. 700 28,219
DTE Energy Co. 800 32,650
Florida Progress Corporation 900 34,650
Hawaiian Electric Industries, Inc. 800 28,450
IPALCO Enterprises, Inc. 1,200 27,675
Otter Tail Power Co. 600 22,950
PG&E Corporation 900 27,956
PP&L Resources, Inc. 1,400 39,113
Rochester Gas & Electric Corporation 1,100 28,050
United Illuminating Co. 600 23,625
-------------
335,838
Total Common Stocks (Cost $8,320,505) 8,948,241
-------------
- ---------------------------------------------------------------------------------------------------------
Short-Term Obligations (0.4%)
Wisconsin Corp Central Credit Union Variable
Demand Note 4.57%, due 7/13/99 19,811
Firstar Bank USA Variable Demand Note 4.57%, due 12/13/99 997
Warner Lambert Variable Demand Note 4.50%, due 7/26/99 13,360
-------------
(Cost $34,168) 34,168
- ---------------------------------------------------------------------------------------------------------
Total Investments: 100.1% 8,982,409
Other Assets, Less Liabilities: (0.1%) (6,255)
------- =============
Total Net Assets: 100.0% $8,976,154
====== =============
* Non-Income Producing Securities
See Notes to Financial Statements.
<PAGE>
THOMAS WHITE INTERNATIONAL FUND+
Investment Portfolio April 30, 1999
- -----------------------------------------------------------------------------------------------------------------------------------
Country Issue Industry Shares Value
- -----------------------------------------------------------------------------------------------------------------------------------
COMMON STOCKS: 98.5%
- -----------------------------------------------------------------------------------------------------------------------------------
ARGENTINA: 0.4%
Telecom Argentina Communications 16,500 $113,047
YPF Sociedad Energy 2,700 113,017
------------
226,064
- -----------------------------------------------------------------------------------------------------------------------------------
AUSTRALIA: 3.5%
National Australia Bank ADR Banking 4,300 417,906
National Australia Bank Banking 18,821 365,865
News Corporation Service 67,500 564,638
Santos Ltd. Energy 29,438 101,146
Telstra Corporation Communications 103,200 559,148
Woolworths Consumer Retail 37,700 119,569
------------
2,128,272
- -----------------------------------------------------------------------------------------------------------------------------------
BELGIUM: 2.3%
Delhaize Consumer Retail 3,700 323,130
Fortis AG Insurance 8,500 284,648
GBL Financial 1,800 329,396
Solvay Chemicals 6,200 431,600
------------
1,368,774
- -----------------------------------------------------------------------------------------------------------------------------------
BRAZIL: 1.0%
Eletrobras PNB Utilities 6,284,000 132,592
Itausa PN Financial Diversified 125,000 66,938
Petrobras PN Energy 409,000 66,544
Telebras ADR Communications 2,400 218,850
Telebras ADR Communications 2,400 188
Vale do Rio Doce PN Metals & Mining 4,600 86,735
------------
571,847
- -----------------------------------------------------------------------------------------------------------------------------------
CANADA: 1.9%
BCE Inc. Communications 9,800 447,370
Quebecor Incorporated Class B Services 9,300 223,479
Royal Bank of Canada Banking 6,200 302,622
Shell Canada Energy 9,100 187,369
------------
1,160,840
- -----------------------------------------------------------------------------------------------------------------------------------
CZECH REPUBLIC: 0.2%
SPT Telecom* Communications 5,000 72,534
Tabak Consumer Staples 200 41,593
------------
114,127
- ------------------------------------------------------------------------------------------------------------------------------------
FINLAND: 0.7%
Nokia A Communications 5,200 400,928
- -----------------------------------------------------------------------------------------------------------------------------------
FRANCE: 6.4%
AGF Insurance 9,900 521,575
Altran Technology Technology 1,200 284,780
B N P Banking 4,100 339,252
Cap Gemini Technology 3,200 488,387
C.G.I.P Industrial 2,000 100,601
Elf-Aquitane Energy 4,000 620,188
L' Oreal Consumer Staples 450 287,628
Renault Consumer Durables 8,100 338,660
Rexel Consumer Retail 3,300 273,230
Societe Generale Banking 1,700 303,744
Suez Lyon Eaux Utilities 1,700 288,683
--------
3,846,728
<PAGE>
THOMAS WHITE INTERNATIONAL FUND+
Investment Portfolio April 30, 1999
- -----------------------------------------------------------------------------------------------------------------------------------
Country Issue Industry Shares Value
- -----------------------------------------------------------------------------------------------------------------------------------
GERMANY: 5.2%
BASF Chemicals 12,000 524,628
Commerzbank Banking 10,300 332,432
Deutsche Telecom Communications 11,800 464,233
GEA AG VZ Industrial 6,300 156,154
Man AG VZ Industrial 18,000 360,720
R W E Vorzuege Utilities 8,700 397,331
Schering AG Healthcare 4,100 472,445
Thyssen AG Industrial 20,000 436,662
------------
3,144,605
- -----------------------------------------------------------------------------------------------------------------------------------
GREECE: 0.5%
Alpha Credit Bank Banking 1,554 111,043
Ergo Bank Banking 910 79,523
OTE Communications 3,555 82,559
------------
273,125
- -----------------------------------------------------------------------------------------------------------------------------------
HONG KONG: 3.8%
Cheung Kong Financial Diversified 16,700 151,910
China Telecom* Communications 103,600 236,591
CLP Holdings Utilities 25,900 139,018
HSBC Holdings Banking 18,000 668,880
Hong Kong & China Gas Utilities 9,790 13,769
Hong Kong Electric Utilities 44,800 142,773
Hutchinson Consumer Retail 25,200 225,979
Johnson Electric Industrial 60,000 179,220
New World Development Industrial 65,300 161,768
SHK Properties Financial Diversified 31,600 277,255
Smartone Telecom Communications 28,400 98,389
------------
2,295,552
- -----------------------------------------------------------------------------------------------------------------------------------
HUNGARY: 0.2%
Matav ADR Communications 4,400 123,750
- -----------------------------------------------------------------------------------------------------------------------------------
INDONESIA: 0.3%
Guadang Garam Consumer Staples 24,000 43,797
Indosat Communications 23,000 44,696
Tambang Timah Metals & Mining 53,000 49,184
Telkom Indonesia Communications 100,000 44,840
------------
182,517
- -----------------------------------------------------------------------------------------------------------------------------------
ISRAEL: 0.2%
Bezeq Israel Telecom Communications 17,000 66,031
IDB Holding Corp. Financial Diversified 2,000 51,613
------------
117,644
- -----------------------------------------------------------------------------------------------------------------------------------
ITALY: 1.0%
Mediaset Services 38,700 334,302
Telecom Italia Mobile Communications 49,201 295,790
------------
630,092
<PAGE>
THOMAS WHITE INTERNATIONAL FUND+
Investment Portfolio April 30, 1999
- -----------------------------------------------------------------------------------------------------------------------------------
Country Issue Industry Shares Value
- -----------------------------------------------------------------------------------------------------------------------------------
JAPAN: 5.9%
Bridgestone Consumer Durables 6,000 160,804
Canon Technology 6,000 146,734
Familymart Consumer Retail 4,000 189,280
Fuji Photo Film Services 5,000 188,860
Honda Motor Consumer Durables 5,000 220,268
KAO Corporation Consumer Staples 12,000 304,522
NGK Spark Plug Consumer Durables 23,000 241,748
Nintendo Services 2,400 225,929
Nippon Telephone & Telegraph Communications 20 217,755
Olympus Optical Technology 12,000 147,538
Ono Pharmaceutical Health Care 5,000 194,304
Pioneer Electric Technology 8,000 152,094
Promise Financial Diversified 3,000 170,854
Shiseido & Company Consumer Staples 12,000 188,944
Sony Corporation Technology 2,000 186,767
TDK Corporation Technology 2,000 151,256
Yamanouchi Pharmaceutical Health Care 7,000 221,607
Yasuda Fire & Marine Insurance Insurance 36,000 199,595
------------
3,508,859
- -----------------------------------------------------------------------------------------------------------------------------------
MALAYSIA: 0.4%
Golden Hope Plantation Consumer Staples 39,000 33,454
Perlis Plantation Consumer Staples 43,750 52,727
Petronas Gas Utilities 30,000 69,867
Telekom Malaysia Communication 29,000 85,472
------------
241,520
- -----------------------------------------------------------------------------------------------------------------------------------
MEXICO: 1.2%
Cemex CPO Building 30,400 141,433
Telefonos de Mexico Communications 7,400 560,550
------------
701,983
- -----------------------------------------------------------------------------------------------------------------------------------
NETHERLANDS: 7.2%
ABN-AMRO Holdings Banking 13,500 321,089
Fortis Amev Cert Insurance 11,200 398,101
Hagemeyer Consumer Retail 9,900 334,142
Heineken Consumer Staples 9,600 480,962
ING Groep Insurance 8,752 538,173
Kon PTT Communications 12,800 533,276
Randstad Holdings Services 5,800 281,711
Royal Dutch Energy 9,800 569,539
TNT Post Groep Services 4,296 285,095
Unilever Consumer Staples 4,354 246,050
VNU Ver Bez Services 7,900 319,132
------------
4,307,270
- -----------------------------------------------------------------------------------------------------------------------------------
NEW ZEALAND: 0.1%
Lion Nathan Limited Consumer Staples 33,000 83,130
- -----------------------------------------------------------------------------------------------------------------------------------
PAKISTAN: 0.1%
Pakistan Telephone Communications 650 23,400
- -----------------------------------------------------------------------------------------------------------------------------------
PHILIPPINES: 0.3%
Manila Electric Utilities 18,000 68,638
Philippines Long Distance Communications 4,200 135,858
------------
204,496
<PAGE>
THOMAS WHITE INTERNATIONAL FUND+
Investment Portfolio April 30, 1999
- -----------------------------------------------------------------------------------------------------------------------------------
Country Issue Industry Shares Value
- -----------------------------------------------------------------------------------------------------------------------------------
POLAND: 0.2%
BPH Banking 1,900 97,060
- -----------------------------------------------------------------------------------------------------------------------------------
PORTUGAL: 0.1%
Banco Espir Santo Banking 2,385 57,204
- ------------------------------------------------------------------------------------------------------------------------------------
RUSSIA: 0.1%
Lukoil ADR Energy 800 27,608
Gazprom ADR Energy 3,500 37,285
------------
64,893
- -----------------------------------------------------------------------------------------------------------------------------------
SINGAPORE: 1.4%
City Development Financial Diversified 13,000 86,518
Development Bank of Singapore - Foreign Banking 14,800 156,899
Singapore Airlines - Foreign Transportation 21,400 196,619
Singapore Telecom Communications 202,100 373,743
------------
813,779
- -----------------------------------------------------------------------------------------------------------------------------------
SOUTH AFRICA: 0.5%
Anglo American Corp SA Industrial 1,100 56,763
De Beers Consumer Retail 1,400 34,971
Edgars 131 667
Firstrand Insurance 15,525 17,093
Liberty Life Association Insurance 2,800 40,355
Nedcor Banking 700 15,300
Rembrandt Group Consumer Staples 7,200 54,724
South African Brewery Consumer Staples 3,714 31,017
Standard Bank Inv. Banking 7,000 21,224
------------
272,114
- -----------------------------------------------------------------------------------------------------------------------------------
SOUTH KOREA: 0.7%
Pohang Iron & Steel Metals & Mining 2,200 185,737
SK Telecom Communications 109 114,067
SK Telecom ADR Communications 206 128,621
------------
428,425
- -----------------------------------------------------------------------------------------------------------------------------------
SPAIN: 1.9%
Endesa Utilities 13,600 301,807
Telefonica de Espana Communications 11,100 519,233
U Fenosa Utilities 23,300 309,403
------------
1,130,443
- ----------------------------------------------------------------------------------------------------------------------------------
SWEDEN: 3.3%
Electrolux B Consumer Durables 22,700 460,106
Nordbanken Holdings Banking 43,000 270,135
Skanska B Building 8,200 325,123
Stora Enso R Forest & Paper 15,820 180,954
Volvo B Consumer Durables 16,500 435,161
WM-Data Technology 7,600 279,262
------------
1,950,741
<PAGE>
THOMAS WHITE INTERNATIONAL FUND+
Investment Portfolio April 30, 1999
- -----------------------------------------------------------------------------------------------------------------------------------
Country Issue Industry Shares Value
- -----------------------------------------------------------------------------------------------------------------------------------
SWITZERLAND: 3.8%
Adecco I Services 655 329,773
Nestle AG Consumer Staples 270 499,025
Novartis Reg Health Care 265 387,420
Richemont I Consumer Staples 120 203,797
Roche GS Health Care 43 505,054
Swiss Reinsurance Insurance 170 371,520
------------
2,296,589
- -----------------------------------------------------------------------------------------------------------------------------------
THAILAND: 0.3%
Advanced Information Service Communications 11,900 94,339
Thai Airways International Transportation 35,300 65,676
------------
160,015
- -----------------------------------------------------------------------------------------------------------------------------------
TURKEY: 0.3%
Akbank Banking 1,793,600 57,037
Arcelik Consumer Durables 1,320,000 52,140
KOC Holdings Consumer Durables 283,100 51,269
Netas* Technology 317,200 7,423
Petkim Chemicals 1,677,000 29,012
------------
196,881
- -----------------------------------------------------------------------------------------------------------------------------------
UNITED KINGDOM: 12.0%
Allied Domecq Consumer Staples 61,800 482,306
Allied Irish Bank Banking 17,300 279,495
BG Plc Utilities 47,700 267,879
BP Amaco Energy 30,400 576,253
Boots Consumer Retail 8,527 113,062
British Energy Utilities 33,400 285,386
British Telecom Communications 38,400 641,392
CGU Plc Insurance 11,000 173,024
Daily Mail & Trust Services 6,700 361,604
G E C Industrial 31,600 334,840
Glaxo Wellcome Healthcare 15,200 450,046
Halifax Banking 30,900 434,327
Legal & General Insurance 38,400 110,296
National Westminster Bank Banking 24,200 584,120
Royal Bank of Scotland Banking 13,900 324,771
Rolls Royce Aerospace 71,300 330,996
Smithkline Beecham Health Care 38,500 508,935
Sun Life & Province Insurance 14,000 125,537
Tesco Consumer Retail 54,200 161,131
Unilever Consumer Staples 27,200 242,039
Vodaphone Communication 21,100 388,422
------------
7,175,861
<PAGE>
THOMAS WHITE INTERNATIONAL FUND+
Investment Portfolio April 30, 1999
- -----------------------------------------------------------------------------------------------------------------------------------
Country Issue Industry Shares Value
- -----------------------------------------------------------------------------------------------------------------------------------
UNITED STATES: 31.1%
Abbott Laboratories Healthcare 10,600 513,437
American Online, Inc.* Technology 2,800 399,700
American Express Co. Financial 2,500 326,719
American International Group, Inc. Insurance 1,900 223,131
American National Insurance Co. Insurance 1,800 124,875
Amgen Inc.* Health Care 12,600 774,112
AmSouth Bancorporation Banking 10,575 502,973
Bell Atlantic Corporation Communications 9,368 539,831
Berkshire Hathaway Inc. Class A Financial Diversified 15 1,146,000
Black & Decker Corporation Services 6,800 385,900
Caterpillar Inc. Capital Goods 3,900 251,062
Chase Manhattan Corporation Banking 8,300 686,825
Coastal Corporation Energy 6,700 256,275
Comerica Inc. Banking 4,050 263,503
Cooper Industries, Inc. Industrial 4,300 208,012
R.R. Donnelley & Sons Co. Services 7,000 247,625
Dow Chemical Co. Chemicals 4,600 603,462
DTE Energy Co. Utilities 6,200 253,037
Eastman Kodak Co. Industrial 4,600 343,275
EMC Corporation* Technology 2,700 294,131
Fannie Mae Financial Diversified 7,200 510,750
Ford Motor Co. Consumer Durables 8,100 517,894
General Electric Co. Industrial 6,000 633,000
GTE Corporation Communication 4,900 327,994
Guidant Corporation* Health Care 6,200 332,862
Harris Corporation Industrial 10,600 366,363
Intel Corporation Technology 2,800 171,325
Lexmark International Group, Inc.* Technology 2,500 308,750
Lucent Technologies, Inc. Technology 6,200 372,775
Mellon Bank Corporation Banking 5,200 386,425
Merck & Co., Inc. Health Care 5,200 365,300
Mobil Corporation Energy 5,500 576,125
PacifiCare Health Systems, Inc.* Health Care 2,900 231,365
PG&E Corporation Utilities 5,500 170,844
Phillips Petroleum Co. Energy 8,900 450,563
Raytheon Co. Industrial 4,100 288,025
Rockwell International Corporation Industrial 5,700 294,263
Royal Dutch Petroleum Co. Energy 5,200 305,175
Safeway Inc.* Consumer Staples 10,900 587,919
TJX Companies, Inc. Consumer Retail 15,000 499,688
TRW Inc. Industrial 5,800 243,238
Unilever N.V. Consumer Staples 2,400 155,850
U S WEST, Inc. Communications 9,000 470,813
VF Corporation Consumer Retail 5,400 278,100
Vulcan Materials Co. Building 1,800 429,750
Walgreen Co. Consumer Staples 10,400 279,500
Xerox Corporation Services 7,400 434,750
Yahoo! Inc.* Technology 1,400 244,563
------------
18,577,854
Total Common Stocks (Cost $48,145,069) 58,877,382
------------
- ------------------------------------------------------------------------------------------------------------------------------------
TIME DEPOSIT: 0.4%
Par Value
State Street Bank and Trust Co. Eurodollar
Time Deposit 3.75%, due 5/03/99 (Cost $244,000) $244,000 244,000
- ------------------------------------------------------------------------------------------------------------------------------------
Total Investments: 98.9% (Cost $48,389,069) 59,121,382
Other Assets, Less Liabilities: 1.1% 677,497
----------- ---------------
Total Net Assets: 100% $59,798,879
=========== ==============
* Non-Income Producing Securities
+ Formerly the Thomas White World Fund, see Note 5.
See Notes to Financial Statements.
<PAGE>
THOMAS WHITE FUNDS FAMILY
Statements of Assets and Liabilities
April 30, 1999 (Unaudited)
- -------------------------------------------------------------------------------------------------------------------------
American American
Growth Opportunities International
Fund Fund Fund+
--------------- ---------------- ---------------
ASSETS
Investments in securities at value1 $ 3,362,456 $ 8,948,241 $ 58,877,382
Cash & cash equivalents 22,038 34,168 244,899
Receivables:
Dividends and interest 3,633 5,532 176,404
Securities sold ------- ------ 2,377,691
Prepaid expenses and deferred organization costs ------- ------ 2,319
Equipment ------- ------ 836
--------------- ---------------- ---------------
Total assets 3,388,127 8,987,941 61,679,531
--------------- ---------------- ---------------
LIABILITIES
Payable for securities purchased ------- ------- 1,808,963
Accrued expenses 812 11,787 71,689
--------------- ---------------- ---------------
Total liabilities 812 11,787 1,880,652
--------------- ---------------- ---------------
NET ASSETS
Source of Net Assets:
Net capital paid in on shares of beneficial interest $ 3,134,799 $ 8,346,425 $ 45,044,358
Undistributed net investment income 2,654 1,994 50,277
Accumulated net realized gain 0 0 3,971,931
Net unrealized appreciation 249,862 627,735 10,732,313
--------------- ---------------- ---------------
Net assets $ 3,387,315 $ 8,976,154 $ 59,798,879
=============== ================ ===============
Shares outstanding 281,478 831,900 4,162,873
Net asset value per share $ 12.03 $ 10.79 $ 14.36
=============== ================ ===============
1 Cost Basis:
American Growth Fund: $3,112,594
American Opportunities Fund: $8,320,505
International Fund: $48,145,069
+Formerly the Thomas White World Fund, see Note 5.
See Notes to Financial Statements.
<PAGE>
THOMAS WHITE FUNDS FAMILY
Statements of Operations (Unaudited)
- -----------------------------------------------------------------------------------------------------------------------
American American
Growth Opportunities International
Fund Fund Fund+
--------------- ---------------- ---------------
1999 (a) 1999 (b) 1999 (c)
--------------- ---------------- ---------------
INVESTMENT INCOME
Income:
Dividends $ 10,952 $ 14,391 $ 457,129 1
Interest 1,340 3,933 34,707
--------------- ---------------- ---------------
Total investment income 12,292 18,324 491,836
--------------- ---------------- ---------------
Expenses:
Investment management fees (note 3) 7,139 12,097 303,033
Custodian fees 1,709 978 29,727
Transfer Agent fees 2,773 1,369 12,896
Audit fees and expenses 4,241 2,993 11,106
Trustees' fees and expenses 771 503 8,214
Printing expenses 392 174 9,577
Legal fees and expenses 1,542 1,007 16,428
Organization costs ------- ------- 2,931
Registration fees 3,578 911 22,816
Depreciation expense ------- ------- 2,561
Other expenses 730 476 9,267
--------------- ---------------- ---------------
Total expenses 22,875 20,508 428,556
Reimbursement from Investment Manager (13,237) (4,178) -------
--------------- ---------------- ---------------
Net expenses 9,638 16,330 428,556
--------------- ---------------- ---------------
Net investment income 2,654 1,994 63,280
--------------- ---------------- ---------------
REALIZED AND UNREALIZED GAIN ON INVESTMENTS
Net realized gain on investments ------- ------- 3,919,611
Unrealized appreciation on investments 249,862 627,735 3,602,492
--------------- ---------------- ---------------
Net gain on investments 249,862 627,735 7,522,103
--------------- ---------------- ---------------
Net increase in net assets from operations $ 252,516 $ 629,729 $ 7,585,383
=============== ================ ===============
(a) From commencement of operations on November 1, 1998.
(b) From commencement of operations on March 4, 1999.
(c) Six months ended April 30, 1999.
1 Net of foreign taxes withheld of $36,240.
+ Formerly the Thomas White World Fund, see Note 5.
See Notes to Financial Statements.
<PAGE>
THOMAS WHITE FUNDS FAMILY
Statements of Changes in Net Assets
- ---------------------------------------------------------------------------------------------------------------------------
American American
Growth Opportunities International
Fund Fund Fund+
------------- --------------- -------------------------------
1999 (a) 1999 (b) 1999 (c) 1998 (d)
------------- --------------- -------------- ----------------
Change in net assets from operations:
Net investment income $ 2,654 $ 1,993 $ 63,280 $ 604,878
Net realized gain --------- --------- 3,919,611 3,965,958
Unrealized appreciation (depreciation) for
the period 249,862 627,736 3,602,492 (112,585)
------------- --------------- -------------- --------------
Net increase in net assets from operations 252,516 629,729 7,585,383 4,458,251
Distributions to shareholders:
From net investment income --------- --------- (551,470) (696,401)
From net realized gain --------- --------- (3,868,364) (1,942,252)
Fund share transactions 3,134,799 8,346,425 (831,085) 7,649,245
------------- --------------- -------------- --------------
Total increase 3,387,315 8,976,154 2,334,464 9,468,843
Net assets:
Beginning of period --------- --------- 57,464,415 47,995,572
------------- --------------- -------------- --------------
End of period $ 3,387,315 $ 8,976,154 $ 59,798,879 $ 57,464,415
============= =============== ============== == ==============
(a) From commencement of operations on November 1, 1998 (unaudited).
(b) From commencement of operations on March 4, 1999 (unaudited).
(c) Six months ended April 30, 1999 (unaudited).
(d) Year ended October 31, 1998.
+ Formerly the Thomas White World Fund, see Note 5.
See Notes to Financial Statements.
<PAGE>
THOMAS WHITE FUNDS FAMILY
Notes to Financial Statements
Period Ended April 30, 1999 (Unaudited)
- ---------------------------------------------------------------------------------------------------------------------
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 three series of Shares, the Thomas
White American Growth Fund (the "American Growth Fund"), the Thomas White American Opportunities Fund (the
"American Opportunities Fund") and the Thomas White International Fund (the "International Fund"). The investment
objective of the Funds is to seek long-term capital growth. The American Growth Fund primarily invests in equity
securities of large U.S. companies. The American Opportunities Fund will also invest in U.S. equity securities,
with a focus on mid-size and small companies. The International Fund will primarily invest in equity securities of
companies located in the world's developed countries outside of the U.S. 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 principles 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.
<PAGE>
THOMAS WHITE FUNDS FAMILY
Notes to Financial Statements
Period Ended April 30, 1999 (Unaudited)
- ---------------------------------------------------------------------------------------------------------------------
(e) 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 (All amounts in thousands)
As of April 30, 1999, there were an unlimited number of $.01 par value shares of beneficial interest authorized.
Transactions are summarized as follows:
American Growth Fund American International
Opportunities Fund Fund (see Note 5)
----------------------- ----------------------- ----------------------------------------------
Period from Period from
November 1, 1999 March 4, 1998 Six Months Year
(Inception) to (Inception) to Ended Ended
April 30, 1999* April 30, 1999* April 30, 1999* October 31, 1998*
----------------------- ----------------------- --------------------- ---------------------
Shares Amount Shares Amount Shares Amount Shares Amount
--------- ---------- --------- --------- -------- --------- -------- ---------
Shares sold 281 $ 3,135 832 $ 8,346 239 $ 3,271 759 $ 10,175
Shares issued on
Reinvestment of
Distributions ------- ------- ------- ------- 321 4,378 208 2,591
Shares redeemed ------- ------- ------- ------- (628) (8,480) (364) (5,117)
--------- ---------- --------- --------- -------- --------- -------- ---------
Net increase (decrease) 281 $ 3,135 832 $ 8,346 (68) $ (831) 603 $ 7,649
--------- ---------- --------- --------- -------- --------- -------- ---------
Note 3. Investment Management Fees and Other Transactions with Affiliates
The Funds pays monthly an investment management fee to Thomas White International, Ltd. at the rate of 1% of the
Funds' average daily net assets. For the current fiscal year Thomas White International, Ltd. has contractually
agreed to reduce its management fee for the American Growth Fund and the American Opportunities Funds to the extent
that the total operating fees do not exceed 1.35% of the Funds' average daily net assets.
Note 4. Investment Transactions
During the period ended April 30, 1999, the cost of purchases and the proceeds from sales of investment securities,
other than short-term obligations, were as follows:
Fund Purchases Sales
- ---------------------------------------- -------------------- ------------------
American Growth Fund 3,112,594 ---------
American Opportunities Fund 8,320,505 ---------
International Fund (see Note 5) 27,263,102 27,414,154
The cost of securities for federal income tax purposes was the same for each fund as that shown in the investment
portfolio.
At April 30, 1999, the aggregate gross unrealized appreciation and depreciation of portfolio securities, based upon
cost for federal income tax purposes, were as follows:
Unrealized Unrealized Net Unrealized
Fund Appreciation Depreciation Appreciation
- ------------------------------------- ----------------- ------------------- -------------------
American Growth Fund 341,999 (92,137) 249,862
American Opportunities Fund 846,196 (218,461) 627,735
International Fund (see Note 5) 12,542,087 (1,809,774) 10,732,313
<PAGE>
THOMAS WHITE FUNDS FAMILY
Notes to Financial Statements
Period Ended April 30, 1999 (Unaudited)
- ---------------------------------------------------------------------------------------------------------------------
Note 5. Subsequent Event
On May 1, 1999, the Thomas White World Fund changed its name the Thomas White International Fund. To coincide with
the name change the investment strategy of the Fund was shifted from a global focus, which normally had over 30%
U.S. equity securities, to primarily non-U.S. equity securities. Under normal market conditions the International
Fund will now have less than 10% of its portfolio invested in U.S. issuers.
Note 6. Financial Information
American Growth American International
Fund Opportunities Fund Fund+
-------------------- --- ---------------------- ---- ------------------
Period from Period from
November 1, 1998 March 4, 1999
(Inception) to (Inception) to Six Months Ended
April 30, 1999 April 30, 1999 April 30, 1999
- ---------------------------------- -- -------------------- --- ---------------------- ---- ------------------
Per share operating performance
(For a share outstanding throughout the period)
Net asset value, beginning of $ 10.00 $ 10.00 $ 13.58
period
-------------------------------------------------------------------------
Income from investment
operations:
Net investment income 0.01 0.00 0.02
Net realized and unrealized
gains 2.02 0.79 1.80
-------------------------------------------------------------------------
2.03 0.79 1.82
Distributions:
From net investment income ------- ------- (0.13)
From net realized gains ------- ------- (0.91)
-------------------------------------------------------------------------
------- ------- (1.04)
Change in net asset value for
the period 2.03 0.79 0.78
-------------------------------------------------------------------------
Net asset value, end of period $ 12.03 $ 10.79 $ 14.36
=============================================================================
Total Return 20.30% ** 7.90% ** 13.78%
Ratios/supplemental data
Net assets. End of period (000) $ 3,387 $ 8,976 $ 59,799
Ratio to average net assets:
Expenses (net of reimbursement) 1.35% *+ 1.35% *+ 1.41%
Net investment income 0.37% * 0.16% * 0.21%
Portfolio turnover rate 0.00% 0.00% 46.25%
* Annualized
** Not annualized.
+ In the absence of the expense reimbursement, expenses for the American Growth and American
Opportunities Funds would have been 1.69% and 3.18%, respectively, of average net assets.
+ Formerly the Thomas White World Fund, see Note 5.
<PAGE>
THOMAS WHITE FUNDS FAMILY
Notes to Financial Statements
- ---------------------------------------------------------------------------------------------------------------------
International Fund+
--------------------------------------------------------------------------------------
Period from
Year Ended Year Ended Year Ended Year Ended June 28, 1994
October 31, October 31, October 31, October 31, (Inception) to
1998 1997 1996 1995 October 31, 1994
--------------------------------------------------------------------------------------
Per share operating performance
(For a share outstanding throughout the period)
Net asset value, beginning of $ 13.23 $ 12.33 $ 11.31 $ 10.50 $ 10.00
period
--------------------------------------------------------------------------------------
Income from investment
operations:
Net investment income 0.15 0.20 0.19 0.19 0.06
Net realized and unrealized
gain 0.93 1.65 1.51 0.71 0.44
--------------------------------------------------------------------------------------
1.08 1.85 1.70 0.90 0.50
Distributions:
From net investment income (0.19) (0.19) (0.20) (0.09) -
From net realized gains (0.54) (0.76) (0.48) - -
--------------------------------------------------------------------------------------
(0.73) (0.95) (0.68) (0.09) -
Change in net asset value for
the period 0.35 0.90 1.02 0.81 0.50
--------------------------------------------------------------------------------------
Net asset value, end of period $ 13.58 $ 13.23 $ 12.33 $ 11.31 $ 10.50
--------------------------------------------------------------------------------------
Total Return 8.64% 15.80% 15.63% 8.65% 5.00% **
Ratios/supplemental data
Net assets. End of period (000) $ 57,464 $ 47,996 $ 39,157 $ 32,979 $ 13,928
Ratio to average net assets:
Expenses (net of reimbursement) 1.42% 1.47% 1.50% 1.49% 1.50% *+
Net investment income 1.13% 1.60% 1.63% 2.08% 1.79% *
Portfolio turnover rate 51.41% 48.19% 51.22% 64.54% 1.01%
* Annualized
** Not annualized.
+ In the absence of the expense reimbursement, expenses would have been 2.36% of average net assets.
+ Formerly the Thomas White World Fund, see Note 5.
</TABLE>
