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
Semi-Annual Report Nicholas G. Manor
Trustee
American Enterprise Fund Edward E. Mack III
American Opportunities Fund Trustee
International Fund
John N. Venson, D.P.M.
Trustee
April 30, 2000
Douglas M. Jackman
Vice President and Treasurer
Brandon S. Joel
Vice President and Treasurer
David Sullivan II
Assistant Treasurer
INVESTMENT ADVISER AND
ADMINISTRATOR
Thomas White International, Ltd.
440 S. LaSalle Street, Suite 3900
Chicago, Illinois 60605-1028
CUSTODIANS
The Northern Trust Company
Chicago, Illinois
Firstar Bank, N.A.
Milwaukee, Wisconsin
LEGAL COUNSEL
Dechert
Washington, DC
INDEPENDENT ACCOUNTANTS
PricewaterhouseCoopers LLP
Chicago, Illinois
TRANSFER AGENT
Firstar Mutual Fund Services LLC
Milwaukee, Wisconsin
For current performance, net asset value, or for assistance with your account,
please contact the Funds Family at 800-811-0535 or visit our web Site at
www.thomaswhite.com.
<PAGE>
The Thomas White Funds Family
Capturing Value Worldwide SM
[Graphic Omitted]
<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, 2000
Dear Friends,
Our funds family has just celebrated its sixth birthday. We sincerely hope
that you, as a member of our shareholder family, have enjoyed your relationship
with us as much as we, the nineteen professionals of Thomas White International,
have enjoyed managing your investments.
As professionals, we take pride in our investment efforts and feel that we
benefit from a close rapport with our clients. For those of you who have not
been in our offices in Chicago, we would welcome your visit. Your calls to
discuss the Funds and market conditions have grown in number over the years. We
encourage this sort of dialogue. Please call me, Doug Jackman, Brandon Joel or
David Sullivan in our Chicago office at 312-663-8300.
The Market Outlook
On March 3rd we sent a letter to shareholders discussing the state of the
market. The following portions of the letter summarizes our feelings at the
time:
The new millennium presents a bright future driven by the benefits of
globalization and rapid technological advances. Influenced by this dazzling
prospect, as well as the uninterrupted stock market advance of the last decade,
investors have driven up "new economy" stocks to valuation levels never before
imagined.
Where is the money coming from to fuel this explosion? It comes from the
indiscriminate sale of stocks in the remaining 70% of the market, a zone now
labeled the "old economy." This is the primary reason explaining the decline in
these stocks. Indeed, many of these companies are setting records for earnings
and profitability due to the strong economy. The tech-related selling of these
companies, combined with healthy earnings, has produced the opportunity to buy
them at extremely low valuations.
<PAGE>
"Houses are best built on stone, not sand. Our thorough stock selection
approach emphasizes the use of time-tested, fundamental valuation measurements
and analyst judgement. The objective is to determine a company's intrinsic
business worth."
"Our research division, the Global Capital Institute, is leading the asset
management industry in the development of techniques to successfully value
modern global companies."
The desire to participate in the "new economy" is perfectly understandable
and correct, but it is important to invest intelligently. The goal is to take
advantage of growth opportunities, while also to avoid the large capital losses
that are possible with record high valuations.
Our professionals stress the disciplined use of business-like valuations to
determine whether a company is under or overvalued. We do not use short-term
approaches, such as chasing overvalued stocks, which we believe will have poor
performance over the long term. Understandably, this rational approach may not
function well in the brief periods when market environment is irrational.
Accordingly, in the short-term we do not expect the portfolios to outperform
until the current technology euphoria burns itself out. Until then, it is
important that we keep you informed and continue to build your confidence in our
investment methods and conclusions.
Three weeks after the letter was sent, most of the overvalued technology
stocks peaked in price, then fell sharply in April and May. They have rallied
this month (June), but have only recovered a portion of their decline. The
Internet stocks, the most extreme examples of overvaluation, fell the hardest.
Amazon.com, which we used as an example in the letter, has declined 50% since
our comments. Does this price action signal a change in the market leadership?
We believe it does for reasons stated in our earlier letter:
<PAGE>
"Alan Greenspan says he will raise interest rates until the market
declines. It's his responsibility to discourage this unhealthy speculation in
tech stocks. We should take him at his word. Investors are in such frenzy, that
they`ve stopped listening to him."
"The only reason people continue to chase many tech stocks well beyond
their fair values is their strong performance. The timing is uncertain, but the
end won't be pleasant for those left holding overvalued shares."
Our message was that when overvalued technology stocks stop outperforming,
investors would abandon them. This currently appears to be happening. Overvalued
stocks should logically decline until reaching their proper values as businesses
and, since they currently trade way above these values, the falls could be
dramatic.
In time, this phase of market history will be remembered as just another
period of speculative excess. Stories will be told of how investors abandoned
all sense of perspective and began paying astronomical valuations just because
the stocks kept going up.
As a professional investor since 1966, it is my job not to get swept away
by the crowd. During speculative times, the advice you receive from an
organization like ours may seem conservative. Moreover, during these unusual
periods our investment style and our mix of stocks may appear too cautious and,
as has happened over the last twelve months, our performance will typically
trail the broad averages.
Fortunately, our clients recognize the current market conditions as
speculative, and understand that our present strategy is appropriate. Two-way
dialogue on these matters is helpful to our professionals and benefits our
family of shareholders.
Portfolio Strategy
Our investment strategy is to own well-run, undervalued companies in most
every sector of the economy and across the major regions of the world. This
broad diversification promotes stable returns. Currently, our portfolios have an
industry weight in technology that is low relative to the market.
With regard to stock selection, we have increased the average size and
quality of the companies in our portfolios. Our analysts believe that large
corporate scale is more necessary than ever to operate globally and to afford
the huge capital expenditures in technology, which improve productivity.
In short, we believe that our domestic and international portfolios are
appropriately diversified and contain quality companies. These equities should
benefit in time from the exciting future we envision. We consider ourselves very
fortunate that the markets offer so many undervalued opportunities.
As we have always said, equity investing should reward the patient investor
who uses disciplined, business-like valuation techniques and has realistic
long-term goals.
All of us at the Thomas White Funds Family appreciate your confidence. We
look forward to hearing from you with any thoughts or questions you have
regarding your investment needs.
Thomas S. White, Jr.
President and Portfolio Manager
<PAGE>
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THE FUNDS HAVE IDENTICAL GOALS
The investment objectives of the American Enterprise, American
Opportunities and International Funds are to achieve long-term capital growth.
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THE THOMAS WHITE FUNDS'
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.
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THE THOMAS WHITE FUNDS FAMILY
The American Enterprise Fund (Large-cap value)
The American Opportunities Fund (Mid-cap value)
The International Fund (Foreign equities)
Mutual fund investors and their advisors have grown increasingly
sophisticated in the management of retirement accounts. Funds are allocated by
their investment style, cap size and between domestic and foreign stocks. The
objective of this careful diversification is smoother performance. The Thomas
White Funds described below should be used as individual components within an
investor's total investment portfolio:
I. The International Fund
We believe globalization will accelerate in the next decade. This trend
started with the demise of the Soviet Union as a superpower and will speed up
with the growing availability of the Internet worldwide.
The Fund is designed to represent the international equity component of an
investor's portfolio of funds. It owns a broadly diversified list of undervalued
common stocks located in all the major global industries. These securities are
also widely diversified by geographical region and in both developed market and
emerging market countries.
Last August, Forbes Magazine honored the International Fund by placing it
in their International Stock Funds "Best Buy List." We were the youngest of the
twelve world funds making this list.
II. The American Enterprise Fund
The American Enterprise Fund is designed to represent the large-cap value
portion of our client's U.S. equities.
III. The American Opportunities Fund
The American Opportunities Fund is designed to represent the mid-cap value
portion of our client's U.S. equities.
<PAGE>
--------------------------------------------------------------------------------
THE WORLD HAS CHANGED.
ADDING AN INTERNATIONAL FUND TO U.S. EQUITY HOLDINGS
OFFERS THE POTENTIAL FOR BOTH IMPROVED PERFORMANCE AND SMOOTHER RETURNS.
GLOBAL STOCK MARKET ALLOCATION
Dec Dec Dec Dec Dec
1960 1970 1980 1990 1999
---- ---- ---- ---- ----
Developed Markets
-----------------
Canada 5% 4% 3% 2% 2%
Europe 22% 22% 23% 25% 32%
Pacific 3% 8% 16% 27% 15%
United States 70% 66% 57% 43% 46%
Emerging Markets .1% .2% .8% .3% .5%
---------------- ----- ----- ----- ----- ----
100% 100% 100% 100% 100%
Global Market
Value ($trillions) $0.5 $2.0 $4.1 $8.2 $22.1
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 Funds and its
International Fund to obtain smoother returns.
History shows that broad global diversification has lowered the volatility
associated with single country portfolios.
Source: Global Capital Institute
--------------------------------------------------------------------------------
Both of our American Funds seek to obtain superior long-term returns while
attempting to limit investment risk. The portfolios will be constructed to take
full advantage of our research department's ability to discover attractive
investment opportunities in each major business sector within the United States.
History shows that careful industry and company diversification can help lower
portfolio volatility and reduce risk during difficult market environments.
The American Enterprise Fund uses a valuation-driven large-cap investment
style and will select most of its stocks from those in the top 80% of the
market's capitalization. These stocks currently have cap sizes down to six
billion dollars.
The American Opportunities Fund will use a valuation-driven mid-cap
investment style and will select most of its stocks from those in the bottom 20%
of the market's capitalization. These stocks currently have cap sizes below six
billion dollars.
The two American Funds are designed to complement each other. The American
Enterprise Fund will tend to have superior returns during periods, like
recently, where larger stocks are outperforming. The American Opportunities Fund
will tend to have superior returns during periods where smaller stocks
outperform.
THE FUNDS ARE INVESTOR FRIENDLY.
The Funds are 100% no-load, a distinct advantage since sales charges and
12b-1 fees reduce a shareholder's return. Each Fund has average or below average
total expenses, in relation to their peers, and attempts to maintain low
portfolio turnover, which is tax-efficient. In addition to managing mutual
funds, our asset management division runs U.S. large-cap, small-cap and
fixed-income portfolios for clients. All of our investment asset classes use our
traditional valuation-oriented investment approach.
<PAGE>
THE FUNDS HAVE COMMON OBJECTIVES
The common goals of the Thomas White Funds are to provide our shareholders
with solid performance and above average portfolio stability.
We attempt to design funds that give shareholders a comfortable ride,
despite being exposed to the stressful world of equities. Shareholders that can
"stay the course" and maintain a well thought out, long-term strategy, have
traditionally done well in equities. Nervous 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.
First, we design portfolios to have strong performance and to be more
stable than most other similar funds. We select stocks on the basis of how 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 attractive
stocks in most every industry and country. This gives us the ability to
construct carefully diversified portfolios. Owning undervalued companies in all
of the major industries or countries can moderate the disruption caused by
unpredictable business and market cycles. Strong and weak sectors tend to offset
each other, producing smoother overall performance, as well as the value added
which comes from owning undervalued stocks.
Second, we try to attract and serve the prudent, long-term investor and
discourage speculators. Please recall "Designing a Lifetime Investment Plan" and
"The Power of Long-Term Investment Plans" in the front of the Funds' prospectus.
Our Funds are applicable to these sorts of plans. Long-term shareholders also
produce fewer fund redemptions and therefore lower portfolio turnover in the
Funds. They also allow us to hold less liquidity-related cash, which also
improves long-term performance.
Third, we encourage shareholders to develop confidence in our advice.
Working with a trusted advisor increases the likelihood of investment success.
We take great pride as professionals in assisting clients to attain their
investment goals. We know that our clients' accomplishments depend on their
knowledge, planning and self-discipline. Accordingly, we attempt to focus our
regular shareholder communications in these areas.
Finally, we send out special letters during periods of market stress.
These are normally delivered in a timely fashion by fax or e-mail. Shareholder
response to these letters has been quite enthusiastic. A complete set of past
shareholder letters and reports are available at our website,
www.thomaswhite.com or by calling 1-800-811-0535.
"The common goals of the Thomas White Funds are 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."
<PAGE>
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THOMAS WHITE AMERICAN ENTERPRISE FUND
TOP TEN HOLDINGS
ON APRIL 30, 2000
BASED ON TOTAL NET ASSETS
--------------------------------------------------------------------------------
Company % of Total
Industry Net Assets
----------------------------------------------------------
Liberty Media Group 3.4%
Services
----------------------------------------------------------
WorldCom, Inc. 2.7%
Communications
----------------------------------------------------------
General Electric Co. 2.5%
Industrial
----------------------------------------------------------
Wal-Mart Stores, Inc. 2.4%
Consumer Retail
----------------------------------------------------------
EMC Corporation 2.2%
Technology
----------------------------------------------------------
Royal Dutch Petroleum Co. 2.2%
Energy
----------------------------------------------------------
Merck & Co, Inc. 2.1%
Health Care
----------------------------------------------------------
Eli Lilly and Co. 2.0%
Health Care
----------------------------------------------------------
Citigroup, Inc. 2.0%
Financial Diversified
----------------------------------------------------------
American Int'l Group, Inc. 1.9%
Insurance
--------------------------------------------------------------------------------
Thomas White American Enterprise Fund
(Ticker: TWAGX)
The American Enterprise Fund has returned an annualized 13.19% since its
inception on November 1, 1998. While this return is similar to the average US
equity return since 1926, it is below the S & P 500's return (22.02%) over the
same eighteen-month period. Our choice to hold a below benchmark portfolio
weight in the technology industry was largely responsible for our lagging the
general market. The Fund has outperformed the Russell 1000 value style index
(10.00%) since inception. Over the last twelve months, the Fund returned 0.10%,
the Russell Value -3.87%, and the S & P 500 10.14%.
We certainly do not want to give our shareholders the impression that we
are ever satisfied with underperforming the general market. Unfortunately, in
times when we believe that certain segments of the market are at high,
unsustainable levels, we will reduce our exposure to those areas. As stated in
our communications over the last year, we do not expect to surpass the S & P
500's returns until the technology sector begins returning to its normal
valuations. This could be occurring now, but if not, we feel the time is close
at hand.
The concept of having contrasting conservative versus aggressive funds is
to allow investors to select a mix that best fits their needs. This Fund is
designed to be the core component for the long-term investor. A long-term
investment plan typically has several U.S. funds, a foreign and a bond fund. An
aggressive growth fund, or perhaps a technology fund, should have a smaller
weight than a core fund. Growth funds are likely to be much more volatile, and
typically will fall sharply in a bear market.
Does the Fund's design as a core value-oriented Fund imply that we believe
it will under-perform a growth or technology funds in the long term? Certainly
not! Our performance objective is the same, but growth funds most often
outperform in more speculative years.
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THOMAS WHITE AMERICAN ENTERPRISE FUND
INDUSTRY DISTRIBUTION
ON APRIL 30, 2000
BASED ON LONG-TERM SECURITIES
--------------------------------------------------------------------------------
Aerospace 0.8%
------------------------------------------------------------
Banking 4.4%
------------------------------------------------------------
Building 0.5%
------------------------------------------------------------
Capital Goods 0.6%
------------------------------------------------------------
Chemicals 0.9%
------------------------------------------------------------
Communications 8.9%
------------------------------------------------------------
Consumer Durables 2.0%
------------------------------------------------------------
Consumer Retail 5.4%
------------------------------------------------------------
Consumer Staples 5.9%
------------------------------------------------------------
Energy 7.3%
------------------------------------------------------------
Financial Diversified 8.6%
------------------------------------------------------------
Health Care 8.5%
------------------------------------------------------------
Industrial 10.7%
------------------------------------------------------------
Insurance 3.5%
------------------------------------------------------------
Metals 1.0%
------------------------------------------------------------
Paper & Forest Products 0.6%
------------------------------------------------------------
Services 9.5%
------------------------------------------------------------
Technology 17.3%
------------------------------------------------------------
Transportation 0.5%
------------------------------------------------------------
Utilities 3.1%
------------------------------------------------------------
Total 100.0%
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The best way we can describe the American Enterprise Fund is to describe
the three components of its portfolio design:
1) We avoid market timing. Our organization's approach is to stay fully
invested since we do not believe we can time the market.
2) We emphasize stock selection. We stress this area because our major
strength is accurate stock selection within major industry sectors. Our ten
investment analysts are industry specialists.
3) We use broad industry diversification. We want the portfolio to include
as many industries as possible. Industry weights are based upon their relative
valuations and their volatility. Our Fund's industry mix differs from the
general market benchmark (the S&P 500) because of our preference for smoother
returns and superior down market performance.
Given its preference for stability over volatility, the American Enterprise
Fund will tend to underweight industries that have high valuations relative to
their own history. The current popularity of the technology industry is a case
in point. The industry has surged recently to a record high valuation level
relative to its past and now represents 26% of the S&P 500. Our portfolio
exposure is 13.1%. Having 26% of the portfolio in just one industry (of 20),
which is so highly volatile, would be inconsistent with our Fund's investment
strategy.
Despite a lower weight in the technology industry, our stock selection
within the group has been excellent with a number of our stocks up well over
100%. Given the background of our professional security analysts, our accuracy
is not surprising. Their educations include two with Ph.D.'s in physics, two
with math Ph.D.'s, and one with a Ph.D. in biochemistry.
In summary, we advise you to maintain our American Enterprise Fund as your
core equity holding.
<PAGE>
PERFORMANCE AT A GLANCE
--------------------------------------------------------------------------------
Relative Performance American Russell 1000 S&P 500
April 30, 2000 Enterprise Value
--------------------------------------------------------------------------------
Year-to-Date 2000 -2.44% -0.69% -0.78%
--------------------------------------------------------------------------------
One Year Total Return 0.10% -3.87% 10.14%
--------------------------------------------------------------------------------
Annualized Total Return 13.19% 10.00% 22.02%
Since Inception (11/1/98)
--------------------------------------------------------------------------------
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. The Russell 1000 Value Index measures the performance of
those Russell 1000 companies with lower price-to-book ratios and lower
forecasted growth values. All indices are unmanaged and returns assume the
reinvestment of dividends.
--------------------------------------------------------------------------------
The American Enterprise Fund
vs
the Russell 1000 Value Index and
the S&P 500
November 1, 1998 to April 30, 2000
[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.
<PAGE>
Thomas White American Opportunities Fund
(Ticker: TWAOX)
The American Opportunities Fund began on March 4, 1999. It has the same
valuation-driven investment style as our large-cap American Enterprise Fund, but
owns a much wider range of stocks. Most of these positions are mid-cap and
small-cap companies. Given that our research professionals regularly value 1700
American companies, this Fund allows us to take full advantage of every
investment opportunity we discover, not just the large caps. The Fund currently
has 211 stocks in all twenty of the American industry groups.
The Fund will strive to outperform the 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 show the Russell 1000 large-cap benchmark and the
Russell 2000 small-cap benchmark as well as the corresponding Russell value
indices.
In the roughly fourteen months since its start, the Opportunities Fund has
returned an annualized 11.6%. The Russell value style mid-cap index returned
5.1%. The Russell mid-cap index returned 24.3%. The Fund's returns reflected its
value style being strongly out-of-favor.
We were very pleased to have the American Opportunities Fund highlighted in
the Featured Funds section of the Morningstar Mutual Funds publication this past
October 21st. The final paragraph of the write-up concludes "Thanks to solid
stock picking this offering has outpaced its mid-blend peers for its first six
months of existence. More important, the firm's institutional mid-cap product
has consistently provided returns superior to the Russell Midcap index for the
past five years."
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THOMAS WHITE AMERICAN
OPPORTUNITIES FUND
TOP TEN HOLDINGS
ON APRIL 30, 2000
BASED ON TOTAL NET ASSETS
--------------------------------------------------------------------------------
Company % of Total
Industry Net Assets
Oracle Corporation 2.2%
Technology
----------------------------------------------------
Apple Computer, Inc. 1.7%
Technology
----------------------------------------------------
Corning Incorporated 1.4%
Technology
----------------------------------------------------
EMC Corporation 1.3%
Technology
----------------------------------------------------
Microchip Technology Inc. 1.3%
Industrial
----------------------------------------------------
Broadwing Inc. 1.2%
Communications
----------------------------------------------------
Lexmark International Grp., Inc. 1.1%
Technology
----------------------------------------------------
Phillips Petroleum Co. 1.1%
Energy
----------------------------------------------------
Nokia Corporation 1.1%
Technology
----------------------------------------------------
Siebel Systems, Inc. 1.1%
Technology
--------------------------------------------------------------------------------
<PAGE>
--------------------------------------------------------------------------------
THOMAS WHITE AMERICAN
OPPORTUNITIES FUND
INDUSTRY DISTRIBUTION
ON APRIL 30, 2000
BASED ON LONG-TERM SECURITIES
--------------------------------------------------------------------------------
Aerospace 1.0%
------------------------------------------------------------
Banking 6.0%
------------------------------------------------------------
Building 0.4%
------------------------------------------------------------
Capital Goods 2.7%
------------------------------------------------------------
Chemicals 1.7%
------------------------------------------------------------
Communications 6.2%
------------------------------------------------------------
Consumer Durables 2.4%
------------------------------------------------------------
Consumer Retail 4.0%
------------------------------------------------------------
Consumer Staples 6.2%
------------------------------------------------------------
Energy 6.1%
------------------------------------------------------------
Financial Diversified 6.3%
------------------------------------------------------------
Health Care 9.2%
------------------------------------------------------------
Industrial 13.2%
------------------------------------------------------------
Insurance 2.6%
------------------------------------------------------------
Metals 0.5%
------------------------------------------------------------
Paper & Forest Products 0.8%
------------------------------------------------------------
Services 10.2%
------------------------------------------------------------
Technology 15.4%
------------------------------------------------------------
Transportation 1.3%
------------------------------------------------------------
Utilities 3.8%
------------------------------------------------------------
Total 100.0%
--------------------------------------------------------------------------------
The Opportunities Fund was started at what we believe will soon be the
beginning of a performance shift away from larger stocks. Investors are
realizing that after four years of large stock outperformance, there are many
bargain-priced smaller companies.
The performance of the Opportunities Fund will probably be more volatile
than that of its large brother, the Enterprise 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 smaller, more fragile companies with less substance.
Second, we 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 that traditionally produces lower portfolio volatility.
As of April 30th, the Fund's wide diversification was reflected by the fact
that its top ten holdings represented just 13.5% of total assets. This compares
to the Morningstar average of all mid-cap funds of 35.5%.1
1 Data is the most recently available from Morningstar Principia (5/31/00). The
average was of the 987 funds that Morningstar categorized as mid-cap.
<PAGE>
PERFORMANCE AT A GLANCE
--------------------------------------------------------------------------------
Relative Performance American Russell Russell
April 30, 2000 Opportunities Midcap Midcap
Fund Value Index
--------------------------------------------------------------------------
Year-to-Date 1.98% 1.41% 4.88%
--------------------------------------------------------------------------
One Year Total Return 5.31% -4.48% 16.02%
--------------------------------------------------------------------------
Annualized Total Return 11.58% 5.11% 24.25%
Since Inception (3/4/99)
--------------------------------------------------------------------------------
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.
--------------------------------------------------------------------------------
The American Opportunities Fund
vs
the Russell Midcap Value Index and
the Midcap Index
March 4, 1999 to April 30, 2000
[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.
<PAGE>
--------------------------------------------------------------------------------
THOMAS WHITE INTERNATIONAL FUND
TOP TEN HOLDINGS
ON APRIL 30, 2000
BASED ON TOTAL NET ASSETS
--------------------------------------------------------------------------------
Company % of Total
Industry, Country Net Assets
---------------------------------------------------------
StMicroelectronics 2.2%
Technology, France
---------------------------------------------------------
Total Fina Elf 2.0%
Energy, France
---------------------------------------------------------
KPN 2.0%
Communications, Netherlands
---------------------------------------------------------
Vodaphone AirTouch 1.8%
Communications, United Kingdom
---------------------------------------------------------
Ericsson ADR 1.7%
Communications, Sweden
---------------------------------------------------------
Telefonica de Espana 1.4%
Communications, Spain
---------------------------------------------------------
Deutsche Telekom 1.3%
Communications, Germany
---------------------------------------------------------
Royal Dutch Petroleum 1.3%
Energy, Netherlands
---------------------------------------------------------
BP Amoco 1.2%
Energy, United Kingdom
---------------------------------------------------------
Telefonos de Mexico 1.2%
Communications, Mexico
---------------------------------------------------------
Thomas White International Fund
(Ticker: TWWDX)
The international equity markets outperformed US equities over the last
twelve months, again demonstrating the wisdom of global diversification. Using
the MSCI indices, the All-Country less US index (with gross dividends) returned
16.6% versus a 9.5% return for the US.
The world's developed-market countries less the US (net) returned 15.1%.
Within regions, Europe returned 10.0%, Canada 46.3%, and the Pacific 23.1%. More
specifically, Continental Europe returned 17.3%, the UK -6.1%, Japan 28.9% and
the Pacific less Japan 1.9%.
The world's emerging-market countries free index returned 22.1%. Within
regions, Europe and the Middle East returned 46.5%, Latin America 14.1% and Asia
23.8%.
The Thomas White International Fund returned 12.61% over the last twelve
months. As with our domestic Funds, the reason that the Fund under performed our
MSCI All-Country less US benchmark (16.55%) was our value style. The
telecommunication, Internet, media and technology sectors (called the TMT sector
in Europe) have been driven to the same excessive valuations around the world.
This is especially true of Europe, Canada, Latin America, Japan, Hong Kong,
Singapore and India.
While we have benefitted from good stock selection in these high-flying
sectors, our portfolio's industry exposure has dropped to below the benchmark
weights. Our valuation discipline forced us to lower our portfolio positions as
the market rocketed up throughout the Fund's fiscal year. These TMT sectors,
which now mirror the movement of the US's NASDAQ Composite index, hit their
highs in late March and have paralleled the fall in their US peers.
<PAGE>
The International Fund has had strong long-term performance since its
inception on June 28, 1994. Our 13.79% annualized return compares favorably to
the MSCI All-Country index (9.46%).
THE TWENTY-NINE YEAR PERFORMANCE OF
THE INTERNATIONAL EQUITY MARKET AND
ITS MAJOR REGIONAL COMPONENTS
<TABLE>
<S> <C> <C> <C> <C> <C> <C>
--------------------------------------------------------------------------------------------------------
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
to Dec. 31, 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% (#5) 32.3% (#3) 41.4% (#2) 22.4% (#4) 65.8% (#1)
--------------------------------------------------------------------------------------------------------
1990-1994 2.4% 0.1% (#4) 7.0% (#3) -3.4% (#5) 15.3% (#1) 9.5% (#2)
--------------------------------------------------------------------------------------------------------
1995-1999 12.1% 20.5% (#2) 22.5% (#1) 2.1% (#4) 5.0% (#3) 1.5% (#5)
--------------------------------------------------------------------------------------------------------
--------------------------------------------------------------------------------------------------------
1970-1999 13.1% 10.8% 13.8% 14.5% 10.7% N/A
--------------------------------------------------------------------------------------------------------
1988-1999 9.3% 11.7% 15.8% 2.1% 12.1% 13.7%
--------------------------------------------------------------------------------------------------------
</TABLE>
The table above presents the performance of the international stock markets
from January 1, 1970 to October 31, 1999. Returns are shown in a series of
five-year periods. 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 that 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 a 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>
--------------------------------------------------------------------------------
THOMAS WHITE INTERNATIONAL FUND
GEOGRAPHIC DISTRIBUTION
ON APRIL 30, 2000
BASED ON LONG-TERM SECURITIES
---------------------------------------------------------
CONTINENTAL EUROPE 43.0%
---------------------------------------------------------
UNITED KINGDOM 15.0%
---------------------------------------------------------
AFRICA & MIDDLE EAST 0.8%
---------------------------------------------------------
CANADA 3.8%
---------------------------------------------------------
LATIN AMERICA 2.8%
---------------------------------------------------------
JAPAN 20.8%
---------------------------------------------------------
FAR EAST 5.1%
---------------------------------------------------------
AUSTRALIA & NEW ZEALAND 3.8%
---------------------------------------------------------
DEVELOPED MARKETS 95.1%
---------------------------------------------------------
EMERGING MARKETS 4.9%
---------------------------------------------------------
Total 100.0%
--------------------------------------------------------------------------------
We are proud that the Fund has maintained a **** Morningstar performance
rank2 throughout the entire period of its rating eligibility. This indicates
that the Fund has stayed in the top third of international funds in terms of its
trailing five-year risk-adjusted performance. Morningstar also rates
international funds by their investment risk. The Fund's Morningstar Risk3 of
0.60 places the Fund in the top 10% of all international funds. This indicates
the Fund has had lower volatility and superior downside performance than
comparable funds over the last five years.
We recommend that you have a significant investment in our International
Fund. Why? We believe that the corporate restructuring miracle that has driven
the advance of the U.S. stock market since 1990 will be repeated in Europe and
Japan over the coming decade.
<PAGE>
PERFORMANCE AT A GLANCE
The International Fund
vs
MSCI Indices
June 28, 1994 to April 30, 2000
[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 was112.7% for the Fund, 69.5% for the MSCI All Country
World ex US and 137.1% for the MSCI All Country Index. The one-year return for
the Fund was 12.6%. The Fund's average annual total return since inception was
13.8%. The MSCI Indices are gross dividends. 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 its Benchmarks
<TABLE>
<S> <C> <C> <C>
--------------------------------------------------------------------------------------------------------
Thomas White MSCI MSCI
Relative Performance International All Country All Country
April 30, 2000 Fund World World
ex US
--------------------------------------------------------------------------------------------------------
One Year 12.61% 16.55% 13.36%
--------------------------------------------------------------------------------------------------------
Three Years 14.81% 13.10% 18.24%
--------------------------------------------------------------------------------------------------------
Five Years 14.51% 10.28% 16.78%
--------------------------------------------------------------------------------------------------------
Average Annual Return 13.79% 9.46% 15.93%
Since Inception (June 28, 1994)
--------------------------------------------------------------------------------------------------------
Cumulative Total Return 112.66% 69.52% 137.16%
Since Inception (June 28, 1994)
--------------------------------------------------------------------------------------------------------
</TABLE>
MSCI All Country World is a compilation of the market indices for 47 developed
and emerging market countries. 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. The Morningstar World Stock Funds and Morningstar Foreign Stock
Funds were removed because they were not representative of the International
Fund's investment style. The one-year performance of the Morningstar World Stock
Fund average was 26.27%. The one-year performance of the Morningstar Foreign
Stock Fund average was 27.27%.
--------------------------------------------------------------------------------
<PAGE>
--------------------------------------------------------------------------------
The Thomas White International Fund is
designed to benefit from the positive changes occurring in the world.
--------------------------------------------------------------------------------
These forty-six countries are home to over 1,700 that meet the Fund's
quality standards. Each shareholder, is a partial owner of 170 of the
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.
The Fund takes full advantage of the extensive going valuation-based
security analysis of companies in resources of the Global Capital Institute.
This forty-six countries. Its monthly equity valuation investment research
organization is owned by Thomas publications are produced for clients who are
asset White International, the Fund's manager. The management organizations
located around the world. Institute's professionals perform on-going
valuation-based security analysis of companies in forty-six countries. Its
monthly equity valuation publications are produced for clients who are asset
management organizations located around the world.
DEVELOPED MARKETS PACIFIC LATIN AMERICA
EUROPE Australia Argentina
Austria Hong Kong Brazil
Belgium Japan Chile
Denmark New Zealand Colombia
Finland Singapore Mexico
France Peru
Germany EMERGING MARKETS Venezuela
Ireland GREATER EUROPE
Italy Czech Republic INDIAN SUBCONTINENT
Netherlands Greece India
Norway Hungary Pakistan
Spain Poland Sri Lanka
Sweden Portugal
Switzerland Russia FAR EAST
United Kingdom Turkey China
Indonesia
NORTH AMERICA MIDDLE EAST Korea
Canada Israel Malaysia
Philippines
AFRICA Taiwan
South Africa Thailand
--------------------------------------------------------------------------------
<PAGE>
DISTRIBUTIONS
The Funds typically pay dividends annually. On December 14, 1999, the Board
of Trustees authorized the following income dividends and capital gains
distributions with an ex-date of December 23, 1999, payable on December 22,
1999, for shareholders of record December 22, 1999.
--------------------------------------------------------------------------------
American American
International Enterprise Opportunities
Fund Fund Fund
Ordinary Income $ 0.0655 $ 0.0220 $ 0.0221
Short-Term Capital Gain $ 0.0336 $ ----- $ -----
Long-Term Capital Gain $ 0.8247 $ _-----_ $ _-----_
- ------ - -------- - --------
Total Per Share $ 0.9238 $ 0.0220 $ 0.0221
= ====== = ====== = ======
--------------------------------------------------------------------------------
2) 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 (05/31/00).
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 1073 and
684international equity funds for the 3 and 5 year periods, respectively.
3)Morningstar Risk: Listed for three, five, and ten years, a statistic that
evaluates the fund's downside volatility relative to that of others in its broad
asset class. To calculate the Morningstar Risk score, they plot the fund's
monthly returns in relation to T-bill returns. They add up the amounts by which
the fund fell short of the Treasury Bill's return and divide the result by the
total number of months in the rating period. This number is then compared with
those of other funds in the same broad asset class. The resulting risk score
expresses how risky the fund is, relative to the average fund in its asset
class. The average risk score for the fund's asset class is set equal to 1.00;
thus a Morningstar risk score of 1.35 for a taxable-bond fund reveals that the
fund has been 35% riskier than the average taxable-bond fund for the period
considered. The four broad asset classes are domestic stock, international
stock, taxable bond, and municipal bond. Data is the most recently available
from Morningstar Principia (05/31/00). The International Fund's Morningstar Risk
ranked 48 out of 689 international equity funds with a minimum of a five-year
record. This past 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>
<TABLE>
<S> <C> <C>
THOMAS WHITE AMERICAN ENTERPRISE FUND+
Investment Portfolio April 30, 2000
-----------------------------------------------------------------------------------------------------------------------
Industry
Issue Shares Value
-----------------------------------------------------------------------------------------------------------------------
Common Stocks (98.5%)
------------------------------------------------
Aerospace (0.8%)
General Dynamics Corporation 1,700 $99,450
Northrop Grumman Corporation 900 63,788
-------------
163,238
Banking (4.4%)
Chase Manhattan Corporation 4,700 338,694
Firstar Corporation 9,500 236,313
UnionBanCal Corporation 5,100 141,206
Wells Fargo & Company 5,700 234,056
-------------
950,269
Building (0.4%)
Vulcan Materials Co. 2,200 96,388
Capital Goods (0.6%)
Caterpillar Inc. 3,200 126,200
Chemicals (0.9%)
Dow Chemical Co. 1,000 113,000
Sherwin-Williams Company 2,900 72,138
-------------
185,138
Communications (8.8%)
AT&T 8,200 382,838
Bell Atlantic Corporation 3,900 231,075
Broadwing Inc. 3,800 107,588
Global Crossing Ltd. 1,025 32,288
GTE Corporation 3,000 203,250
WorldCom, Inc. 12,700 577,056
U S WEST, Inc. 5,200 370,175
-------------
1,904,270
Consumer Durables (1.9%)
Dana Corporation 1,800 54,675
Ford Motor Co. 2,500 136,719
General Motors Corporation 1,900 177,888
Goodyear Tire & Rubber Co. 1,800 49,725
-------------
419,007
Consumer Retail (5.3%)
Black & Decker Corporation 1,800 75,712
Lowe's Companies, Inc. 600 29,700
Ross Stores, Inc. 5,700 118,275
Target Corporation 3,700 246,281
TJX Companies, Inc. 8,700 166,931
Wal-Mart Stores, Inc. 9,400 520,525
-------------
1,157,424
<PAGE>
Consumer Staples (5.8%)
ConAgra, Inc. 11,700 220,838
CVS Corporation 4,300 187,050
H.J. Heinz Co. 5,400 183,600
Kroger Co. 7,700 142,931
McCormick & Company, Incorporated 2,000 62,375
Sara Lee Corporation 10,600 159,000
SUPERVALU Inc. 5,700 117,919
Walgreen Co. 6,400 180,000
-------------
1,253,713
Energy (7.1%)
Arch Coal, Inc. 393 2,112
Ashland Inc. 1,600 54,600
BP Amoco p.l.c. 4,428 225,828
Chevron Corporation 2,200 187,275
Coastal Corporation 1,800 90,337
Conoco Inc. Class A 500 11,906
Exxon Corporation 600 46,613
Phillips Petroleum Co. 4,800 227,700
Royal Dutch Petroleum Co. 8,300 476,212
Schlumberger Limited 300 22,969
Texaco Inc. 300 14,850
USX-Marathon 8,200 191,162
-------------
1,551,564
Financial Diversified (8.5%)
American Express Co. 200 30,013
Berkshire Hathaway Class B* 150 287,419
Citigroup Inc. 7,300 433,894
Fannie Mae 4,800 289,500
Freddie Mac 2,900 133,219
Lehman Brothers Holdings Inc. 1,200 98,475
MBNA Corporation 6,500 172,656
Morgan Stanley Dean Witter & Co. 4,200 322,350
T. Rowe Price Associates, Inc. 1,800 68,625
-------------
1,836,151
Health Care (8.4%)
Baxter International Inc. 1,400 91,175
Biogen, Inc. 1,300 76,456
Bristol-Myers Squibb Co. 6,400 335,600
Cardinal Health, Inc. 2,700 148,669
Edwards Lifesciences Corp 280 4,200
Eli Lilly and Co. 5,700 440,681
HEALTHSOUTH Corp.* 600 4,838
Johnson & Johnson 2,000 165,000
Mallinckrodt Inc. 1,800 48,375
Merck & Co., Inc. 6,700 465,650
PacifiCare Health Systems, Inc. 700 36,006
-------------
1,816,650
<PAGE>
Industrial (10.6%)
Cooper Industries, Inc. 1,000 34,312
Eastman Kodak Co. 3,700 206,969
Emerson Electric Co. 4,400 241,450
General Electric Co. 3,400 534,650
Honeywell International Inc. 1,600 89,600
Illinois Tool Works Inc. 4,200 269,062
Johnson Controls, Inc. 700 44,319
National Service Industries, Inc. 1,700 36,550
Pentair, inc. 1,500 57,375
PPG Industries, Inc. 2,100 114,187
Rockwell International Corporation 2,700 106,312
Textron Inc. 1,000 61,937
TRW Inc. 5,400 315,900
Union Carbide Corporation 3,100 182,900
-------------
2,295,523
Insurance (3.4%)
American International Group, Inc. 3,700 405,844
American National Insurance Co. 1,800 92,925
AXA Financial, Inc. 5,600 182,700
CIGNA Corporation 600 47,850
MBIA Inc. 400 19,775
-------------
749,094
Metals (1.0%)
Alcoa Inc. 3,400 220,575
Paper & Forest Products (0.6%)
Georgia-Pacific Group 1,200 44,100
Weyerhaeuser Co. 1,700 90,844
-------------
134,944
Services (9.3%)
Darden Restaurants, Inc. 4,400 81,125
Gannett Co., Inc. 1,400 89,425
Genuine Parts Company 3,200 84,000
Knight Ridder 1,500 73,594
Liberty Media Group 14,600 729,088
New York Times Co. 2,200 90,612
Pitney Bowes 2,400 98,100
Royal Caribbean Cruises Ltd. 2,400 49,950
SABRE Group Holdings, Inc.* 600 20,963
Time Warner Inc. 3,600 323,775
TRICON Global Restaurants, Inc.* 3,500 119,437
Viacom Inc. Class B* 4,900 266,437
-------------
2,026,506
Technology (17.1%)
America Online, Inc.* 2,200 131,588
Cisco Systems, Inc.* 3,800 263,387
EMC Corporation* 3,500 486,281
Gateway, Inc. 2,300 127,075
Intel Corporation 2,900 367,756
Lexmark International Group, Inc.* 800 94,400
Lucent Technologies Inc. 4,400 273,625
Microsoft Corporation* 3,400 237,150
Motorola, Inc. 1,900 226,219
Nokia Corporation 5,200 295,750
Oracle Corporation* 3,300 263,794
QUALCOMM Inc.* 800 86,750
Sun Microsystems, Inc.* 3,000 275,812
Tellabs, Inc. 4,600 252,137
Texas Instruments Inc. 1,000 162,875
Xilinx Inc.* 2,200 161,150
-------------
3,705,749
<PAGE>
Transportation (0.5%)
Union Pacific Corporation 2,600 109,525
Utilities (3.1%)
DTE Energy Company 3,800 123,975
Entergy Corporation 5,000 127,187
FPL Group, Inc. 2,700 122,006
GPU, Inc. 2,000 56,125
Nicor Inc. 3,200 108,400
PG&E Corporation 2,800 72,625
Texas Utilities Company 1,700 57,269
-------------
667,587
-------------
Total Common Stocks (Cost $21,424,907) 21,942,516
-----------------------------------------------------------------------------------------------------------------------
Short-Term Obligations (1.6%)
Principal
Amount
Firstar Bank USA Variable Demand Note 5.83%, due 5/2/00 $2,691 2,691
Wisconsin Corp Central Credit Union Variable
Demand Note 5.83%, due 5/2/00 342,813 342,813
-------------
Total Short-Term Obligations (Cost $345,504) 345,504
-----------------------------------------------------------------------------------------------------------------------
Total Investments: 100.1% (Cost $21,770,411) 21,715,019
Other Assets, Less Liabilities: (0.1)% (5,310)
---------
=============
Total Net Assets: 100.0% $21,709,709
======
=============
* Non-Income Producing Securities
+ Formerly the Thomas American Growth Fund, see Note 5.
See Notes to Financial Statements.
<PAGE>
THOMAS WHITE AMERICAN OPPORTUNITIES FUND
Investment Portfolio April 30, 2000
--------------------------------------------------------------------------------------------------------------------------------
Industry
Issue Shares Value
---------------------------------------------------------------------------------------------------------------------------------
Common Stocks (98.2%)
---------------------------------------------------
Aerospace (1.0%)
General Dynamics Corporation 700 $40,950
Northrop Grumman Corporation 900 63,788
-------------
104,738
Banking (5.9%)
AmSouth Bancorporation 1,200 17,475
Bank of America Corporation 1,200 58,800
Chase Manhattan Corporation 1,100 79,269
Cullen/Frost Bankers, Inc. 1,600 39,500
Firstar Corporation 2,800 69,650
M&T Bank Corporation 150 65,888
Mellon Bank Corporation 1,000 32,125
North Fork Bancorporation, Inc. 1,800 29,138
Republic Bancorp Inc. 3,360 35,846
UnionBanCal Corporation 2,300 63,681
Wells Fargo & Company 1,700 69,806
Zions Bancorporation 1,300 53,950
-------------
615,128
Building (0.4%)
USG Corporation 400 16,700
Vulcan Materials Co. 600 26,288
-------------
42,988
Capital Goods (2.6%)
Briggs & Stratton Corporation 600 23,025
Caterpillar Inc. 800 31,550
GATX Corporation 1,000 35,750
Graco Inc. 1,500 50,813
Lincoln Electric Holdings, Inc. 1,500 28,594
Manitowoc Company, Inc. 1,200 39,825
Tennant Co. 900 31,331
York International Corporation 1,300 31,362
-------------
272,250
Chemicals (1.7%)
Cytec Industries Inc.* 1,000 30,125
Dow Chemical Co. 300 33,900
Sherwin-Williams Company 1,400 34,825
Solutia Inc. 1,400 19,075
Union Carbide Corporation 500 29,500
W.R. Grace & Co.* 2,100 27,300
-------------
174,725
Communications (6.0%)
Broadwing Inc. 4,300 121,744
CenturyTel, Inc. 1,300 31,850
Cox Communications, Inc. 184 7,878
Global Crossing Ltd. 2,100 66,150
GTE Corporation 1,100 74,525
Loral Space & Communications Ltd. 2,900 28,456
WorldCom, Inc. 2,250 102,234
Telephone and Data Systems, Inc. 500 51,000
U S WEST, Inc. 1,500 106,781
Valassis Communications, Inc. 1,050 35,766
-------------
626,384
<PAGE>
Consumer Durables (2.4%)
Arvin Industries, Inc. 600 13,050
Dana Corporation 500 15,188
Ford Motor Co. 400 21,875
General Motors Corporation 400 37,450
Goodyear Tire & Rubber Co. 400 11,050
Maytag Corporation 900 30,994
Meritor Automotive, Inc. 1,400 21,000
Mohawk Industries, Inc. 1,200 29,775
Navistar International Corporation* 500 17,500
PACCAR Inc. 500 23,781
Whirlpool Corporation 400 26,050
-------------
247,713
Consumer Retail (4.0%)
American Eagle Outfitters, Inc. 1,000 17,000
AnnTaylor Stores Corporation 900 18,619
Fossil, Inc. 1,100 22,825
Jones Apparel Group, Inc. 900 26,719
Ross Stores, Inc. 2,600 53,950
Talbots, Inc. 1,200 60,675
Target Corporation 1,000 66,563
TJX Companies, Inc. 1,600 30,700
Wal-Mart Stores, Inc. 1,400 77,525
Zale Corporation* 900 37,125
-------------
411,701
Consumer Staples (6.1%)
Alberto-Culver Co. CL A 2,700 61,088
Brown Forman Corporation 900 49,106
Canandaigua Brands, Inc.* 1,000 50,375
ConAgra, Inc. 2,000 37,750
CVS Corporation 1,800 78,300
Helen of Troy Limited* 2,800 18,550
H.J. Heinz Co. 400 13,600
IBP, Inc. 3,000 49,500
Kimberly-Clark Corporation 800 46,450
Kroger Co. 2,000 37,125
Lancaster Colony Corporation 900 23,625
Longs Drug Stores Corporation 1,700 39,525
McCormick & Company, Incorporated 1,200 37,425
Sara Lee Corporation 700 10,500
Scotts Company 700 25,288
SUPERVALU Inc. 2,500 51,719
-------------
629,926
<PAGE>
Energy (6.0%)
Allegheny Energy, Inc. 900 27,338
Coastal Corporation 1,800 90,338
Conoco Inc CL A 4,200 100,012
Exxon Corporation 900 69,919
Mitchell Energy/Dev'b' 3,000 71,813
Phillips Petroleum Co. 2,400 113,850
Royal Dutch Petroleum Co. 1,800 103,275
Tosco Corporation 1,500 48,094
-------------
624,639
Financial Diversified (6.2%)
A.G. Edwards, Inc. 700 26,337
AMCORE Financial, Inc. 500 9,969
American Express Company 500 75,031
Berkshire Hathaway Class B* 15 28,742
Capital One Financial Corporation 900 39,375
Citigroup Inc. 1,600 95,100
Fannie Mae 1,600 96,500
Freddie Mac 1,000 45,937
Goldman Sachs Group, Inc. 300 27,975
Morgan Stanley Dean Witter & Co. 800 61,400
SLM Holding Corporation 800 25,050
T. Rowe Price Associates, Inc. 1,600 61,000
Waddell & Reed Financial, Inc. 1,800 47,925
-------------
640,341
Health Care (9.0%)
Abbott Laboratories 900 34,594
Allergan, Inc. 1,000 58,875
Arrow International, Inc. 1,900 64,837
Baxter International Inc. 900 58,612
Beckman Coulter, Inc. 900 58,331
Biogen, Inc.* 600 35,288
Bristol-Myers Squibb Co. 900 47,194
CIGNA Corporation 500 39,875
Columbia/HCA Healthcare Corporation 1,600 45,500
DENTSPLY International Inc. 1,500 43,594
Dura Pharmaceuticals, Inc. 3,400 44,200
Edwards Lifesciences Corp 180 2,700
Eli Lilly and Company 1,000 77,313
First Health Group Corporation 500 15,219
HEALTHSOUTH Corporation* 4,500 36,281
Humana Inc.* 2,000 15,375
Johnson & Johnson 900 74,250
Merck & Co., Inc. 800 55,600
Orthodontic Centers of America, Inc.* 2,300 48,731
PacifiCare Health Systems, Inc.* 500 25,719
Tenet Healthcare Corporation* 2,000 51,000
-------------
933,088
<PAGE>
Industrial (12.9%)
AptarGroup, Inc. 1,400 39,900
Ball Corporation 800 25,200
BFGoodrich Company 1,200 38,250
C&D Technologies, Inc. 1,500 96,656
CLARCOR Inc. 2,200 39,600
Cooper Industries, Inc. 1,000 34,312
Corning Incorporated 747 147,533
Crane Co. 1,600 43,000
Dionex Corporation* 1,000 36,375
Eastman Kodak Co. 700 39,156
GenCorp Inc. 2,200 22,138
General Electric Co. 400 62,900
Harris Corporation 1,400 45,237
Honeywell International Inc. 900 50,400
Illinois Tool Works Inc. 800 51,250
Johnson Controls, Inc. 700 44,319
Littelfuse, Inc.* 2,100 74,550
Microchip Technology Incorporated 2,100 130,331
Myers Industries, Inc. 2,200 30,800
National Service Industries, Inc. 1,000 21,500
Pentair, Inc. 1,200 45,900
PPG Industries, Inc. 800 43,500
Rockwell International Corporation 1,000 39,375
Standex International Corporation 1,400 23,012
Timken Co. 1,700 31,450
Trinity Industries, Inc. 1,400 31,150
TRW Inc. 900 52,650
-------------
1,340,444
Insurance (2.5%)
Ambac Financial Group, Inc. 700 33,600
American International Group, Inc. 600 65,812
American National Insurance Co. 400 20,650
Arthur J. Gallagher & Co. 1,000 37,250
AXA Financial, Inc. 1,700 55,463
HCC Insurance Holdings, Inc. 1,000 11,750
Lincoln National Corporation 1,000 34,813
-------------
259,338
<PAGE>
Paper & Forest Products (0.8%)
Georgia-Pacific Group 400 14,700
Mead Corporation 800 27,850
Wausau-Mosinee Paper Corporation 1,500 18,187
Weyerhaeuser Co. 400 21,375
-------------
82,112
Metals (0.5%)
Alcoa Inc. 800 51,900
Services (10.0%)
Applebee's International, Inc. 900 32,794
Brinker International, Inc.* 1,400 44,625
Central Newspapers, Inc. 800 24,550
Chris-Craft Industries, Inc. 618 37,968
Darden Restaurants, Inc. 1,500 27,656
Diebold, Incorporated 2,400 69,300
Gannett Co., Inc. 500 31,937
Grey Advertising Inc. 100 44,000
Hollinger International Inc. 2,200 27,775
Knight Ridder 1,300 63,781
Liberty Media Group 1,600 79,900
Media General Cl'a' 600 29,512
Petco Animal Supplies, Inc. 3,400 39,313
Pre-Paid Legal Services, Inc.* 1,400 44,800
Royal Caribbean Cruises Ltd. 2,000 41,625
SABRE Group Holdings, Inc.* 1,700 59,394
Time Warner Inc. 900 80,944
TRICON Global Restaurants, Inc.* 1,100 37,538
True North Communications Inc. 1,600 65,900
United Stationers Inc. 2,200 73,425
Viacom Inc. Class B* 1,500 81,562
-------------
1,038,299
Technology (15.1%)
Adaptec, Inc.* 1,900 51,300
Apple Computer, Inc.* 1,400 173,687
Cisco Systems, Inc. 1,400 97,038
Comverse Technology, Inc.* 400 35,675
EMC Corporation* 1,000 138,937
Intel Corporation 800 101,450
Lexmark International Group, Inc.* 1,000 118,000
Linear Technology Corporation 1,800 102,825
Microsoft Corporation* 600 41,850
Motorola, Inc. 300 35,719
Network Appliance, Inc. 400 29,575
Nokia Corporation 2,000 113,750
Oracle Corporation* 2,800 223,825
QUALCOMM Inc.* 800 86,750
Siebel Systems, Inc.* 900 110,587
Sun Microsystems, Inc. 300 27,581
Symantec Corporation* 700 43,706
Texas Instruments Incorporated 200 32,575
-------------
1,564,830
<PAGE>
Transportation (1.3%)
Burlington Northern Santa Fe Corporation 600 14,475
Canadian Pacific Limited 2,200 52,387
Newport News Shipbuilding Inc. 900 30,037
Union Pacific Corporation 800 33,700
-------------
130,599
Utilities (3.8%)
Citizens Utilities Company 3,000 48,187
DTE Energy Co. 800 26,100
Energen Corporation 900 16,481
Hawaiian Electric Industries, Inc. 800 29,600
Kansas City Power & Light Company 1,200 30,825
NorthWestern Corporation 900 20,700
NSTAR 1,000 44,062
OGE Energy Corp. 1,300 25,756
Otter Tail Power Co. 1,200 31,200
PG&E Corporation 900 23,344
PP&L Resources, Inc. 1,600 38,200
TXU Corp. 500 16,844
Vectren Corporation 1,966 39,566
-------------
390,865
Total Common Stocks (Cost $9,260,273) 9,984,749
-------------
---------------------------------------------------------------------------------------------------------------------------------
Short-Term Obligations (1.9%)
Principal
Amount
Wisconsin Corp Central Credit Union Variable
Demand Note 5.83%, due 5/2/00 193,606 193,606
-------------
Total Short-Term Obligations (Cost $193,606) 193,606
---------------------------------------------------------------------------------------------------------------------------------
Total Investments: 101.1% (Cost $9,453,879) 10,375,614
Other Assets, Less Liabilities: (0.1)% (11,023)
---------
=============
Total Net Assets: 100.0% $10,364,591
=======
=============
* Non-Income Producing Securities
See Notes to Financial Statements.
<PAGE>
THOMAS WHITE INTERNATIONAL FUND
Investment Portfolio April 30, 2000
-----------------------------------------------------------------------------------------------------------------------------------
Country Issue Industry Shares Value
-----------------------------------------------------------------------------------------------------------------------------------
COMMON STOCKS: 98.4%
-----------------------------------------------------------------------------------------------------------------------------------
ARGENTINA: 0.2%
PC Holdings S.A. Energy 2,256 $34,545
Telecom Argentina Communications 8,000 44,500
------------
79,045
-----------------------------------------------------------------------------------------------------------------------------------
AUSTRALIA: 3.5%
Broken Hill Property ADR Metals & Mining 3,100 65,681
Broken Hill Property Metals & Mining 8,432 90,492
Fosters Breweries Group Consumer Staples 44,000 110,880
National Australia Bank ADR Banking 4,300 69,921
National Australia Bank Banking 5,121 293,206
News Corporation Limited ADR Services 6,000 308,625
Rio Tinto Plc Metals & Mining 2,300 149,212
Telstra Corporation Communications 83,100 354,987
Woodside Petroleum Energy 19,300 118,952
------------
1,561,956
-----------------------------------------------------------------------------------------------------------------------------------
BELGIUM: 1.6%
Fortis AG Insurance 8,500 214,586
Groupe Bruxelles Lambert Financial Diversified 1,200 291,273
Solvay Chemicals 2,800 189,382
------------
695,241
-----------------------------------------------------------------------------------------------------------------------------------
BRAZIL: 1.2%
Eletrobras PNB Utilities 6,284,000 103,058
Petrobras PN Energy 409,000 96,688
Tele Brasil-Telebras Hldrs Ads Communications 1,700 200,919
Vale do Rio Doce PN Metals & Mining 4,600 113,570
------------
514,235
-----------------------------------------------------------------------------------------------------------------------------------
CANADA: 3.8%
Alcan Aluminum Metals & Mining 2,500 81,875
BCE Inc. Communications 2,800 324,459
Bombardier Inc. Capital Goods 10,100 271,693
Nortel Networks Corporation Technology 4,000 453,000
Rogers Communication Services 2,400 62,400
Royal Bank of Canada Banking 4,800 226,621
Shell Canada Energy 9,100 181,385
Toronto Dominion Bank Banking 3,000 69,375
------------
1,670,808
CZECH REPUBLIC: 0.3%
SPT Telecom* Communications 5,000 92,788
TABAK Consumer Staples 200 32,123
------------
124,911
<PAGE>
-----------------------------------------------------------------------------------------------------------------------------------
FINLAND: 2.7%
Nokia Communications 20,800 1,192,216
-----------------------------------------------------------------------------------------------------------------------------------
FRANCE: 11.0%
Assurances Generales de France (AGF) Insurance 9,900 491,850
Altran Technologies Technology 1,200 245,236
Aventis Healthcare 5,100 280,500
Banqu National de Paris (BNP) Banking 4,100 331,354
Carrefour Supermarche Consumer Retail 3,400 221,309
L' Oreal Consumer Staples 450 305,182
Pinault-Printempts-Redoute Consumer Retail 1,200 242,073
Renault Consumer Durables 5,600 246,145
Societe Generale Banking 1,700 352,055
STMicroelectronics Technology 4,900 935,009
Suez Lyonnaise des Eaux Utilities 700 109,773
Societe Television Francaise (TF1) Services 300 205,364
Total Fina Elf Energy 5,833 885,025
------------
4,850,875
-----------------------------------------------------------------------------------------------------------------------------------
GERMANY: 4.9%
BASF Chemicals 9,700 419,304
DaimlerChrysler Consumer Durables 3,400 197,818
Deutsche Telekom Communications 9,000 576,818
MG Technologies Industrial 9,450 149,567
R W E Utilities 7,800 251,018
Schering Healthcare 1,700 240,318
Thyssen Industrial 15,000 313,635
------------
2,148,478
-----------------------------------------------------------------------------------------------------------------------------------
GREECE: 0.5%
Alpha Credit Bank Banking 1,554 86,296
EFG Eurobank Banking 1,200 31,955
Ergo Bank Banking 1,230 23,966
Hellenic Telecommunications Organization
(OTE) Communications 3,555 80,139
------------
222,356
-----------------------------------------------------------------------------------------------------------------------------------
HONG KONG: 3.7%
Cathay Pacific Airways Transportation 58,000 104,615
China Telecom (Hong Kong)* Communications 42,800 309,067
CLP Holdings Utilities 25,900 116,040
HSBC Holdings Banking 45,200 504,830
Hutchinson Industrial 25,200 367,184
Sun Hung Kai Properties Financial Diversified 31,600 250,503
------------
1,652,239
------------
<PAGE>
-----------------------------------------------------------------------------------------------------------------------------------
HUNGARY: 0.3%
Matav ADR Communications 4,400 153,175
-----------------------------------------------------------------------------------------------------------------------------------
INDONESIA: 0.2%
Astra International Services 115,000 46,425
Indosat Communications 108,000 47,012
------------
93,437
------------
-----------------------------------------------------------------------------------------------------------------------------------
ISRAEL: 0.4%
Bezeq Israel Telecom Communications 17,000 90,146
IDB Holding Corporation Financial Diversified 2,000 69,005
------------
159,151
-----------------------------------------------------------------------------------------------------------------------------------
ITALY: 3.0%
Mediaset Services 18,700 308,550
San Paolo-IMI Banking 22,600 317,220
Telecom Italia Mobile Communications 44,400 424,220
Telecom Italia Communications 19,100 267,226
------------
1,317,216
-----------------------------------------------------------------------------------------------------------------------------------
JAPAN: 20.5%
The 77 Bank Banking 15,000 107,538
Asahi Bank Banking 23,000 110,494
Asahi Chemical Industries Chemicals 17,000 97,689
Bank Tokyo-Mitsubishi Banking 20,000 257,574
Canon Technology 6,000 273,836
Chubu Electric Power Utilities 8,000 131,559
Dai Nippon Printing Services 5,000 84,672
Daiwa House Industries Building 10,000 66,518
Daiwa Securities Financial Diversified 14,000 213,415
East Japan Railway Transportation 50 295,639
Familymart Consumer Retail 4,000 146,341
Fuji Heavy Industries Consumer Durables 20,000 152,438
Fuji Photo Film Services 5,000 200,018
Fujitsu Technology 8,000 226,164
Hirose Electric Technology 1,400 168,921
Honda Motor Consumer Durables 5,000 223,115
Jusco Consumer Retail 12,000 221,729
KAO Corporation Consumer Staples 12,000 364,745
Kirin Brewery Consumer Staples 12,000 155,986
Komatsu Capital Goods 32,000 153,731
Matsushita Electric Industrial Capital Goods 7,000 184,959
Mitsubishi Heavy Industries Capital Goods 36,000 111,751
Nintendo Services 2,400 399,113
Nippon Telephone & Telegraph Communications 25 309,497
Nippon Telephone & Telegraph Mobile Communications 15 500,277
Olympus Optical Technology 15,000 245,565
Ono Pharmaceutical Health Care 5,000 208,333
Oracle Corporation Japan Technology 300 241,131
Orix Corporation Financial Diversified 960 136,763
Pioneer Electric Technology 8,000 218,034
Rohm Technology 1,100 366,870
Sankyo Health Care 4,000 87,952
Sanwa Bank Banking 17,000 163,968
Seven-Eleven Japan Consumer Retail 1,000 122,875
Shimano Consumer Durables 7,000 129,989
Shin-Etsu Chemical Chemicals 3,000 158,259
Softbank Banking 900 221,175
Sony Corporation Technology 4,000 458,610
Suzuki Motor Consumer Durables 9,000 133,786
Takefuji Financial Diversified 900 95,039
Tokyo Electric Power Utilities 6,000 141,352
Toyo Seikan Metals & Mining 5,000 88,229
Toyota Motor Company Consumer Durables 3,000 148,836
Yamanouchi Pharmaceutical Health Care 7,000 369,272
Yasuda Fire & Marine Insurance Insurance 36,000 145,343
------------
9,039,100
<PAGE>
-----------------------------------------------------------------------------------------------------------------------------------
MALAYSIA: 0.5%
Golden Hope Plantations Consumer Staples 39,000 41,254
Telekom Malaysia Communications 29,000 100,734
Tenaga Nasional Utilities 30,000 99,471
------------
241,459
-----------------------------------------------------------------------------------------------------------------------------------
MEXICO: 1.4%
Cemex ADR Building 4,080 89,250
Telefonos de Mexico ADR Communications 8,800 517,550
------------
606,800
-----------------------------------------------------------------------------------------------------------------------------------
NETHERLANDS: 7.5%
ABN-AMRO Holdings Banking 13,500 277,977
Aegon Insurance 3,100 222,777
Ahold Consumer Retail 10,100 235,513
Heineken Consumer Staples 3,900 216,273
ING Groep Insurance 8,847 482,724
KPN Communications 8,400 846,491
Philips Electronics Industrial 10,800 481,777
Royal Dutch Petroleum Energy 9,800 564,836
------------
3,328,368
NEW ZEALAND: 0.2%
Telecom Corporation of New Zealand Communications 2,200 74,463
-----------------------------------------------------------------------------------------------------------------------------------
PAKISTAN: 0.1%
Pakistan Telephone Communications 650 38,350
-----------------------------------------------------------------------------------------------------------------------------------
PHILIPPINES: 0.3%
Philippine National Bank Banking 26,900 60,269
San Miguel Consumer Staples 52,400 65,998
------------
126,267
-----------------------------------------------------------------------------------------------------------------------------------
POLAND: 0.2%
Telekom Polska Communications 12,500 91,671
<PAGE>
-----------------------------------------------------------------------------------------------------------------------------------
RUSSIA: 0.2%
Lukoil ADR Energy 800 46,400
Gazprom ADR* Energy 3,500 23,386
------------
69,786
-----------------------------------------------------------------------------------------------------------------------------------
SINGAPORE: 1.2%
City Developments Financial Diversified 13,000 58,981
DBS Group Holdings Banking 11,630 160,000
Singapore Airlines Transportation 16,000 167,666
Singapore Telecommunications Communications 108,600 156,395
------------
543,042
-----------------------------------------------------------------------------------------------------------------------------------
SOUTH AFRICA: 0.4%
Anglo American Corp Metals & Mining 1,100 46,640
De Beers Metals & Mining 1,400 28,709
Liberty International Insurance 1,400 13,115
Nedcor Banking 700 13,281
Rembrandt Group Consumer Staples 7,200 57,359
South African Breweries Consumer Staples 3,714 27,056
------------
186,160
-----------------------------------------------------------------------------------------------------------------------------------
SOUTH KOREA: 1.2%
Pohang Iron & Steel Metals & Mining 2,200 172,075
SK Telecom Communications 1,340 356,206
------------
528,281
-----------------------------------------------------------------------------------------------------------------------------------
SPAIN: 3.2%
Banco Popular Espanol Banking 11,600 313,200
Gas Natural Utilities 10,300 172,103
Telefonica de Espana Communications 26,466 588,988
Union Electrica Fenosa Utilities 17,600 337,119
------------
1,411,410
<PAGE>
-----------------------------------------------------------------------------------------------------------------------------------
SWEDEN: 4.3%
Electrolux - B Shares Consumer Durables 17,200 291,678
Ericsson ADR Technology 8,500 751,719
Nordic Baltic Holdings Banking 69,200 437,635
Skanska - B Shares Building 5,500 201,314
Stora Enso - R Shares Forest & Paper 21,000 212,730
------------
1,895,076
-----------------------------------------------------------------------------------------------------------------------------------
SWITZERLAND: 4.2%
Adecco Services 355 296,950
Nestle Consumer Staples 270 476,793
Novartis Health Care 200 279,872
Richemont Consumer Staples 120 292,071
Roche Holdings Health Care 25 259,222
Swiss Re Insurance 150 245,716
------------
1,850,624
-----------------------------------------------------------------------------------------------------------------------------------
THAILAND: 0.4%
Advanced Info Service Communications 11,900 139,466
Thai Airways International* Transportation 30,000 32,319
------------
171,785
-----------------------------------------------------------------------------------------------------------------------------------
TURKEY: 0.6%
Akbank Banking 2,690,400 60,265
Arcelik Consumer Durables 1,165,800 99,093
Koc Holdings Consumer Durables 566,200 113,466
------------
272,824
<PAGE>
-----------------------------------------------------------------------------------------------------------------------------------
UNITED KINGDOM: 14.7%
Abbey National Banking 23,000 262,053
Allied Zurich Insurance 16,300 159,474
ARM Holdings Technology 7,000 222,250
Bank of Scotland Banking 23,900 209,096
Barclays Banking 8,000 201,673
BG Group Utilities 58,222 353,087
BP Amoco Energy 60,800 522,892
British Telecommunications Communications 28,000 498,117
Corus Group Metals & Mining 96,800 129,712
Daily Mail & General Trust Services 11,600 176,318
Dixons Group Consumer Retail 20,304 83,364
GKN Industrial 14,800 199,779
Glaxo Wellcome Health Care 15,200 468,203
Legal & General Group Insurance 80,400 205,141
Provident Financial Financial Diversified 11,800 100,385
Rolls-Royce Aerospace 97,600 341,005
Royal Bank of Scotland Group Banking 23,425 363,502
Smithkline Beecham Health Care 30,700 416,568
Tesco Consumer Retail 54,200 182,079
Thus Technology 25,000 138,440
Unilever Consumer Staples 24,285 144,564
Vodaphone AirTouch Communications 173,309 790,185
WPP Group Services 20,900 331,850
------------
6,499,742
Total Common Stocks (Cost $35,355,212) 43,410,742
-----------------------------------------------------------------------------------------------------------------------------------
TIME DEPOSIT: 1.3%
Par Value
The Northern Trust Company Eurodollar
Time Deposit 5.02%, due 5/01/00 (Cost $592,321) $592,321 592,321
-----------------------------------------------------------------------------------------------------------------------------------
Total Investments 99.7% (Cost $35,947,533) 44,003,063
Other Assets, Less Liabilities: 0.3% 133,278
============ ==============
Total Net Assets: 100% $44,136,341
============ ==============
* Non-Income Producing Securities
See Notes to Financial Statements.
<PAGE>
Thomas White FUNDS FAMILY
Statements of Assets and Liabilities
April 30, 2000
-------------------------------------------------------------------------------------------------------------------------
American American
Enterprise Opportunities International
Fund+ Fund Fund
--------------- ---------------- ---------------
ASSETS
Investments in securities at value1 $ 21,715,019 $ 10,375,614 $ 43,410,742
Cash ------- ------- 592,321
Receivables:
Dividends and interest 21,722 8,074 165,453
Securities sold ------- ------- 108,325
Prepaid expenses 197 143 1,755
--------------- ---------------- ---------------
Total assets 21,736,938 10,383,831 44,278,596
--------------- ---------------- ---------------
LIABILITIES
Payable for securities purchased ------- ------- 103,238
Due to advisor 16,164 6,919 35,824
Accrued expenses 11,065 12,321 3,193
--------------- ---------------- ---------------
Total liabilities 27,229 19,240 142,255
--------------- ---------------- ---------------
NET ASSETS
Source of Net Assets:
Net capital paid in on shares of beneficial interest $ 21,683,462 $ 9,242,761 $ 34,002,580
Undistributed net investment income (Accumulated
net investment loss) 9,676 10,376 (34,913)
Accumulated net realized gain (loss) 71,963 189,719 2,113,144
Net unrealized appreciation (depreciation) (55,392) 921,735 8,055,530
--------------- ---------------- ---------------
Net assets $ 21,709,709 $ 10,364,591 $ 44,136,341
=============== ================ ===============
Shares outstanding 1,805,854 914,200 3,277,892
Net asset value per share $ 12.02 $ 11.34 $ 13.46
=============== ================ ===============
1 Cost Basis:
American Enterprise Fund: $21,770,411
American Opportunities Fund: $9,453,879
International Fund: $35,355,212
+ Formerly the Thomas White American Growth Fund, see Note 5.
See Notes to Financial Statements.
<PAGE>
Thomas White FUNDS FAMILY
Statements of Operations
Six Months Ended April 30, 2000
-----------------------------------------------------------------------------------------------------------------------
American American
Enterprise Opportunities International
Fund+ Fund Fund
--------------- ---------------- ---------------
INVESTMENT INCOME
Income:
Dividends $ 162,691 $ 79,822 $ 264,719 (1)
Interest 8,150 2,076 12,774
--------------- ---------------- ---------------
Total investment income 170,841 81,898 277,493
--------------- ---------------- ---------------
Expenses:
Investment management fees (note 3) 108,479 49,829 227,106
Custodian fees 3,491 3,721 28,839
Transfer Agent fees 5,575 6,206 11,269
Audit fees and expenses 7,518 4,034 9,733
Trustees' fees and expenses 2,989 1,447 5,774
Printing expenses 1,422 1,084 2,743
Legal fees and expenses 8,713 5,427 22,797
Registration fees 3,878 1,550 15,950
Other expenses 3,735 1,647 6,906
--------------- ---------------- ---------------
Total expenses 145,800 74,945 331,117
Reimbursement from Investment Manager (546) (10,076) -------
--------------- ---------------- ---------------
Net expenses 145,254 64,869 331,117
--------------- ---------------- ---------------
Net investment income (loss) 25,587 17,029 (53,624)
--------------- ---------------- ---------------
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS
Net realized gain on investments 151,563 190,733 2,113,144
Unrealized appreciation (depreciation) on investments (296,224) 360,171 1,281,376
--------------- ---------------- ---------------
Net gain (loss) on investments (144,661) 550,904 3,394,520
--------------- ---------------- ---------------
Net increase (decrease) in net assets from
operations $ (119,074) $ 567,933 $ 3,340,896
=============== ================ ===============
1 Net of foreign taxes withheld of $32,630.
+ Formerly the Thomas White American Growth Fund, see Note 5.
See Notes to Financial Statements.
<PAGE>
Thomas White funds family
Statements of Changes in Net Assets
---------------------------------------------------------------------------------------------------------------------------------
American Enterprise Fund+ American Opportunities Fund
--------------------------------------
-------------- ---------------
Six Months Year Ended Six Months March 4, 1999 (c)
Ended April October 31, Ended April to October 31,
30, 2000 1999 30, 2000 1999
-------------- --------------- --------------- -- -------------------
Change in net assets from operations:
Net investment income $ 25,587 $ 24,955 $ 17,029 $ 13,847
Net realized gain (loss) 151,563 (79,601) 190,733 (1,015)
Unrealized appreciation (depreciation) (296,224) 240,832 360,171 561,564
-------------- --------------- --------------- -- -------------------
Net increase (decrease) in net assets from
operations (119,074) 186,186 567,933 574,396
Distributions to shareholders:
From net investment income (40,865) --------- (20,499) ---------
From net realized gain --------- --------- ---------
Fund share transactions (Note 2) (244,580) 21,928,042 (113,497) 9,356,258
-------------- --------------- --------------- -- -------------------
Total increase (decrease) (404,519) 22,114,228 433,937 9,930,654
Net assets:
Beginning of period 22,114,228 --------- 9,930,654 ---------
-------------- --------------- --------------- -- -------------------
End of period $ 21,709,709 $ 22,114,228 $ 10,364,591 $ 9,930,654
============== =============== =============== == ===================
(c) Commencement of operations.
International Fund
-----------------------------------
Six Months Year Ended
Ended April October 31,
30, 2000 1999
--------------- --- ---------------
Change in net assets from operations:
Net investment income (loss) $ (53,624) $ 236,025
Net realized gain 2,113,144 9,410,278
Unrealized appreciation (depreciation) 1,281,376 (355,667)
--------------- --- ---------------
Net increase in net assets from operations 3,340,896 9,290,636
Distributions to shareholders:
From net investment income (204,312) (551,470)
From net realized gain (2,675,813) (10,655,149)
Fund share transactions (Note 2) 2,010,228 (13,883,090)
--------------- --- ---------------
Total increase (decrease) 2,471,999 (15,799,073)
Net assets:
Beginning of period 41,665,341 57,464,415
--------------- --- ---------------
End of period $ 44,136,341 $ 41,665,342
=============== === ===============
(c) Commencement of operations.
+ Formerly the Thomas White American Growth Fund, see Note 5.
See Notes to Financial Statements.
<PAGE>
THOMAS WHITE FUNDS FAMILY
Notes to Financial Statements
Six Months Ended April 30, 2000
---------------------------------------------------------------------------------------------------------------------------------
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 Enterprise Fund (the "American Enterprise Fund") that commenced
operations on November 1, 1998, the Thomas White American Opportunities Fund
(the "American Opportunities Fund") that commenced operations on March 4, 1999,
and the Thomas White International Fund (the "International Fund") that
commenced operations on June 28, 1994. The investment objective of the Funds is
to seek long-term capital growth. The American Enterprise 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 each 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
Six Months Ended April 30, 2000
---------------------------------------------------------------------------------------------------------------------------------
(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, 2000, there were an unlimited number of $.01 par value shares of
beneficial interest authorized. Transactions are summarized as follows:
American Enterprise Fund (see Note 5) American Opportunities Fund
--------------------------------------------------- -----------------------------------------------
March 4, 1999
Six Months Year Six Months (commencement of
Ended Ended Ended operations) to
April 30, 2000 October 31, 1999 April 30, 2000 October 31, 1999
----------------------- ----------------------- ----------------------- --------------------
Shares Amount Shares Amount Shares Amount Shares Amount
--------- ---------- -------- ---------- --------- ---------- -------- -------
Shares sold 77 $ 916 1,835 $ 21,969 8 $ 92 929 $ 9,386
Shares issued on
reinvestment of 3 41
dividends & distributions ------- ------- ------- ------- 2 18 ------- -------
Shares redeemed (107) (1,202) (3) (41) (22) (223) (3) (30)
--------- ---------- -------- ---------- --------- ---------- -------- -------
Net increase (decrease) (27) $ (245) 1,832 $ 21,928 (11) $ (113) 926 $ 9,356
--------- ---------- -------- ---------- --------- ---------- -------- -------
International Fund
---------------------------------------------------
Six Months Year
Ended Ended
April 30, 2000 October 31, 1999
----------------------- -----------------------
Shares Amount Shares Amount
--------- ---------- -------- ----------
Shares sold 203 $ 2,807 407 $ 5,426
Shares issued on
reinvestment of
dividends & distributions 202 2,863 849 11,158
Shares redeemed (261) (3,660) (2,353) (30,467)
--------- ---------- -------- ----------
Net increase (decrease) 144 $ 2,010 (1,097) $ (13,883)
--------- ---------- -------- ----------
Note 3. Investment Management Fees and Other Transactions with Affiliates
The Funds pays monthly an investment management fee to Thomas White
International, Ltd. (the "Advisor") at the rate of 1% of the Funds' average
daily net assets. For the current fiscal year the Advisor has contractually
agreed to reduce its management fee for the American Enterprise Fund and the
American Opportunities Funds to the extent that the total operating fees do
exceed 1.35% of each Fund's average daily net assets.
Note 4. Investment Transactions
During the six months ended April 30, 2000, the cost of purchases and the
proceeds from sales of investment securities, other than short-term obligations,
were as follows:
Fund Purchases Sales
------------------------------------------ ------------------ ------------------
American Enterprise Fund (see Note 5) 7,148,135 7,576,473
American Opportunities Fund 3,421,615 3,666,328
International Fund 11,090,252 11,992,687
The cost of securities for federal income tax purposes was the same for each
Fund as that shown in the investment portfolio.
<PAGE>
THOMAS WHITE FUNDS FAMILY
Notes to Financial Statements
Six Months Ended April 30, 2000
---------------------------------------------------------------------------------------------------------------------------------
At April 30, 2000, the aggregate gross unrealized appreciation and depreciation
of portfolio securities, based upon cost for federal income tax purposes, were
as follows:
Net Unrealized
Unrealized Unrealized Appreciation
Fund Appreciation Depreciation (Depreciation)
------------------------------------------ ---------------- --------------- -------------------
American Enterprise Fund (see Note 5) 2,288,119 (2,343,511) (55,392)
American Opportunities Fund 1,882,899 (961,164) 921,735
International Fund 10,712,203 (2,656,673) 8,055,530
Note 5. Name Change
On March 1, 2000, the Thomas White American Growth Fund changed its name to the
Thomas White American Enterprise Fund. This name change did not represent a
change in the investment objective or the policies of the Fund.
Note 6. Financial Highlights
American Enterprise Fund+ American Opportunities Fund
------------------------------------- --- ------------------------------------
March 4, 1999
Six Months Year Six Months (commencement
Ended Ended Ended of operations)
April 30, 2000 October 31, April 30, to
1999 2000 October 31,
1999
---------------------------------------- --- ---------------- --- ---------------- --- -------------- ---- ----------------
Per share operating performance
(For a share outstanding throughout the period)
Net asset value, beginning of period $ 12.07 $ 10.00 $ 10.73 $ 10.00
--- ---------------- --- ---------------- --- -------------- ---- ----------------
---- ----------------
Income from investment operations:
Net investment income 0.03 0.01 0.03 0.02
Net realized and unrealized gains (0.06) 2.06 0.60 0.71
(losses)
--- ---------------- --- ---------------- --- -------------- ---- ----------------
---- ----------------
(0.03) 2.07 0.63 0.73
Distributions:
From net investment income (0.02) ------- (0.02) -------
From net realized gains ------- ------- ------- -------
--- ---------------- --- ---------------- --- -------------- ---- ----------------
---- ----------------
(0.02) ------- (0.02) -------
Change in net asset value for the (0.05) 2.07 0.61 0.73
period
---- ----------------
=== ================ === ================ === ============== ==== ================
Net asset value, end of period $ 12.02 $ 12.07 $ 11.34 $ 10.73
=== ================ === ================ === ============== ==== ================
==== ================
Total Return (0.23)% ** 20.70% 5.90% ** 7.30% **
Ratios/supplemental data
Net assets, end of period (000) $ 21,710 $ 22,114 $ 10,365 $ 9,931
Ratio to average net assets:
Expenses (net of reimbursement) 1.34% *+ 1.35% *+ 1.30% *+ 1.35% *+
Net investment income 0.24% * 0.23% * 0.34% * 0.22% *
Portfolio turnover rate 32.66% ** 4.58% 34.29% ** 3.53% **
* Annualized ** Not annualized
+ In the absence of the expense reimbursement, expenses for the American
Enterprise and American Opportunities Funds would have been 1.36% and 1.50%,
respectively, of average net assets.
+ Formerly the Thomas White American Growth Fund, see Note 5.
<PAGE>
THOMAS WHITE FUNDS FAMILY
Notes to Financial Statements
Period Ended April 30, 2000
---------------------------------------------------------------------------------------------------------------------------------
International Fund
---------------------------------------------------------------------------------------------
Six Months
Ended Year Ended Year Ended Year Ended Year Ended Year Ended
April 30, October October October October October
2000 31, 1999 31, 1998 31, 1997 31, 1996 31, 1995
-- ------------- --- ----------- -- ------------ -- ----------- -- ------------ --- ------------
Per share operating performance
(For a share outstanding throughout the period)
Net asset value, beginning of $ 13.30 $ 13.58 $ 13.23 $ 12.33 $ 11.31 $ 10.50
period
-- ------------- --- ----------- -- ------------ -- ----------- -- ------------ --- ------------
-- ------------ --- ------------
Income from investment
operations:
Net investment income (loss) (0.01) 0.07 0.15 0.20 0.19 0.19
Net realized and unrealized 1.10 2.32 0.93 1.65 1.51 0.71
gains
-- ------------- --- ----------- -- ------------ -- ----------- -- ------------ --- ------------
-- ------------ --- ------------
1.09 2.39 1.08 1.85 1.70 0.90
Distributions:
From net investment income (0.07) (0.13) (0.19) (0.19) (0.20) (0.09)
From net realized gains (0.86) (2.54) (0.54) (0.76) (0.48) -
-- ------------- --- ----------- -- ------------ -- ----------- -- ------------ --- ------------
-- ------------ --- ------------
(0.93) (2.67) (0.73) (0.95) (0.68) (0.09)
Change in net asset value for 0.16 (0.28) 0.35 0.90 1.02 0.81
the period
-- ------------ --- ------------
== ============= === =========== == ============ == =========== == ============ === ============
Net asset value, end of period $ 13.46 $ 13.30 $ 13.58 $ 13.23 $ 12.33 $ 11.31
== ============= === =========== == ============ == =========== == ============ === ============
== ============ === ============
Total Return 7.80% ** 18.78% 8.64% 15.80% 15.63% 8.65%
Ratios/supplemental data
Net assets, end of period (000) $ 44,136 $ 41,665 $ 57,464 $ 47,996 $ 39,157 $ 32,979
Ratio to average net assets:
Expenses (net of reimbursement) 1.46% 1.44% 1.42% 1.47% 1.50% 1.49%
Net investment income (0.24)% 0.46% 1.13% 1.60% 1.63% 2.08%
Portfolio turnover rate 25.06% ** 67.48% 51.41% 48.19% 51.22% 64.54%
** Not annualized
</TABLE>
