Thomas White Funds Family
Lord Asset Management Trust
Thomas S. White, Jr.
Chairman of the Board
and President
Jill F. Almeida
Trustee
Annual Report
American Growth Fund
American Opportunities Fund
International Fund
October 31, 1999
Philip R. Haag
Trustee
Nicholas G. Manos
Trustee
Edward E. Mack III
Trustee
John N. Venson, D.P.M.
Trustee
Douglas M. Jackman
Vice President and Secretary
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
State Street Bank and Trust Company
Boston, Massachusetts
Firstar Bank Milwaukee
Milwaukee, Wisconsin
LEGAL COUNSEL
Dechert Price & Rhoads
Washington, DC
INDEPENDENT ACCOUNTANTS
PricewaterhouseCoopers LLP
New York, New York
TRANSFER AGENT
Firstar Mutual Fund Securities L.L.C.
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>
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:
December 31, 1999
Dear Friends,
Over the last twelve months, investors around the world have become
increasingly confident as they approach the start of the year 2000. Reflecting
this growing enthusiasm, the global stock markets have advanced in unison.
The Emerging Markets in the Far East, Latin America and Eastern Europe
have rebounded strongly from their crisis lows in the fall of 1998. Japan is now
in the second year of its first bull market in ten years, despite its still
struggling economy. In Europe, investors have a growing confidence in the
region's new free market reforms. While stocks have advanced, a weak Euro has
muted the performance in terms of US dollars.
The stock market in the United States is in its ninth year of
uninterrupted advance. Earnings growth is strong, inflation is low and interest
rates are still at moderate levels. Are things too good to be true? Will good
times continue in the coming decade?
The best way to answer these important questions is to examine the past
decade so as to understand why we have enjoyed such a long run of good fortune.
Two powerful forces, both highly beneficial, were responsible for the
economic progress of the 1990's.
A. MORE EFFECTIVE GOVERNMENTS
Simply said, mankind is finally concluding that democracy and free
markets are more successful in serving people than other alternatives
(communism, socialism, etc.). This decade's progress was heavily the result of
the benefits derived from more effective national governments.
<PAGE>
Nowhere have the improvements in government efficiency been more evident
than in the United States. These have led to reduced taxes and a balanced
budget. The Federal Reserve orchestrated an ideal environment for growth, full
employment and low inflation. Wise regulation improved the efficiency of stock
markets and spurred Americans to invest intelligently in retirement plans. The
institutionalization of equity holding spawned shareholder activism and this in
turn reshaped corporations for the better.
Europeans overcame generations of distrust among member nations to
establish a more efficient Common Market. This regional government will do
wonders in reducing the unnecessary duplication in fourteen separate
governments.
Russia and the Eastern Block countries abandoned communism and began the
difficult process of converting their economies to Western standards.
Japan's economic model, which allocated capital through cozy Keiretsu of
banks and corporations, was successful in lifting the country from World War II
despair to preeminence. But this approach became inappropriate by the nineties.
The Japanese government's inability to adjust its policies in a timely manner
led to the country's decade-long bear market.
B. ADVANCES IN TECHNOLOGY
In 1989, no one envisioned this decade's long, uninterrupted business
expansion. Nobody ever imagined the coming tremendous gains in productivity that
lead to our current low inflation.
What did forecasters fail to anticipate? The answer is they
underestimated the benefits that technology would have in reducing business
costs. They also failed to understand that personal computers and falling
communication costs would dramatically increase competition among companies and
put downward pressure on prices.
Strategists did not project that large-caps would outperform for most of
the decade. The relaying of signatures and paper from the local office to
regional to national and then to the world headquarters disappeared with the
salesman's laptop and modem. So did all the people and offices in the middle.
These phenomena benefitted the largest companies the most. Moreover, these
displaced workers then recycled into more productive and interesting jobs, which
explains the country's full employment.
GOOD TIMES SHOULD CONTINUE!
Our firm believes that the coming decade will continue to enjoy
prosperity and peace. The markets will benefit from many of the same factors
that have driven the strong performance of the last ten years.
Equity returns will probably average an attractive 10%. This decade's
projection is lower than the 18.5% rate of the 1990's. While continued strong
earnings growth will be a positive, valuation expansion is unlikely from the
current high levels. Inflation should average a low 3%. The estimated 10% return
for the coming ten-year period would before taxes, turn a $10,000 investment
into $25,937. This should outperform both bonds and cash equivalents.
History suggests there could be two bear markets in the coming ten years,
each falling roughly 30%. Since accurate market timing is wishful thinking, you
will have to endure these interim speed bumps. Beware! The most common reason
that investors fail to reach the final $25,937 is that they attempt to time the
market along the way. Given our attractive vision of the future, we recommend
investors stay fully invested. We will continue to do our best to provide
shareholders with strong long-term returns and stable interim performance.
Speaking on behalf of our firm's seventeen professionals, we sincerely
appreciate your confidence in our organization and your support of our Funds. We
wish you a joyous holiday season and a prosperous new Millennium!
Thomas S. White, Jr.
President and Portfolio Manager
The economic progress in the 1990's was driven by advances in technology and
improvements in the policies of national governments. We believe these twin
drivers will lead to an unprecedented level of prosperity in the coming decade.
<PAGE>
THE FUNDS HAVE IDENTICAL GOALS
The investment objectives of the American Growth, American Opportunities and
International Funds are to achieve long-term capital growth.
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
attmept to project short-term changes in the general market.
THE THOMAS WHITE FUNDS FAMILY
The American Growth 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 Growth Fund
The American Growth Fund is designed to represent the large-cap value
portion of our client's U.S. equities.
<PAGE>
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.
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 Growth 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 Growth 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.
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 Oct
1960 1970 1980 1990 1999
---- ---- ---- --- ----
Developed Markets
- -----------------
Canada 5% 4% 3% 2% 2%
Europe 22% 22% 23% 25% 27%
Pacific 3% 8% 16% 27% 18%
United States 70% 66% 57% 43% 49%
Emerging Markets .1% .2% .8% 3% 4%
- ---------------- ---- --- --- --- ---
100% 100% 100% 100% 100%
Global Market
Value ($trillions) $0.5 $2.0 $4.1 $8.2 $26.2
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.
<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>
THOMAS WHITE AMERICAN GROWTH FUND
TOP TEN HOLDINGS
ON OCTOBER 31, 1999
BASED ON TOTAL NET ASSETS
Company % of Total
Industry Net Assets
- ---------------------------------------------------------
Amgen 2.8%
Pharmaceuticals
- ---------------------------------------------------------
Bell Atlantic 2.7%
Communications
- ---------------------------------------------------------
Merck & Co 2.4%
Pharmaceutical
- ---------------------------------------------------------
Bristol Myers Squibb 2.2%
Pharmaceutical
- ---------------------------------------------------------
USWest 2.2%
Communications
- ---------------------------------------------------------
General Electric 2.1%
Industrial
- ---------------------------------------------------------
Abbott Labs 1.9%
Pharmaceutical
- ---------------------------------------------------------
Chase Manhattan 1.9%
Banking
- ---------------------------------------------------------
AT&T 1.7%
Communications
- ---------------------------------------------------------
EMC Corp. 1.6%
Technology
- ---------------------------------------------------------
Thomas White American Growth Fund
(Ticker: TWAGX)
1999 has been a year where the managers of value-oriented funds have been
restricted to sitting on the sidelines, watching the growth managers participate
in an exciting party. As a value fund, we have indeed lagged the general market,
although we have done better than our style benchmark.
The American Growth Fund returned 20.7% over the last twelve months. This
trailed the 25.7% return of the S&P 500, but bettered the 16.5% of the Russell
1000 Value Index. This index is the accepted benchmark for the large-cap value
style.
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.
<PAGE>
The best way we can describe the American Growth 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 Growth
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, one
with a math Ph.D., and one with a Ph.D. in biochemistry.
In summary, we advise you to maintain our American Growth Fund as your
core equity holding.
THOMAS WHITE AMERICAN GROWTH FUND
INDUSTRY DISTRIBUTION
ON OCTOBER 31, 1999
BASED ON LONG-TERM SECURITIES
Aerospace 0.7%
Banking 8.8%
Building 0.4%
Capital Goods 0.7%
Chemicals 2.1%
Communications 8.3%
Consumer Durables 1.8%
Consumer Retail 5.5%
Consumer Staples 7.1%
Energy 6.7%
Financial Diversified 7.5%
Health Care 11.1%
Industrial 9.3%
Insurance 4.2%
Metals 0.3%
Paper & Forest Products 0.5%
Services 7.8%
Technology 13.1%
Transportation 0.7%
Utilities 3.4%
-----------------------------
Total 100.0%
<PAGE>
PERFORMANCE AT A GLANCE
Relative Performance American S&P 500 Russell 1000
October 31, 1999 Growth Value
- ---------------------------------------------------------------------------
Six Months 0.3% 2.7% -2.9%
Year-to-Date 7.5% 12.0% 7.7%
One Year Total Return 20.7% 25.7% 16.5%
- ---------------------------------------------------------------------------
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.
Pursuant to Rule 304(a) of Regulation S-T, the following table replaces a graph
showing growth of an initial $10,000 investment, assuming all dividend and
capital gain distributions reinvested, and various comparisons. The return since
inception (November 1, 1998) was 20.7% for the Fund.
The American Growth Fund
vs
the S&P 500
the Russell 1000 Value Index
November 1, 1998 to October 31, 1999
Date American S&P Russell 1000
Growth Fund 500 Value Index
Nov 1, 1998 10,000.00 10,000.00 10,000.00
Nov 30, 1998 10,560.00 10,605.50 10,465.82
Dec 31, 1998 11,230.00 11,222.74 10,822.09
Jan 31, 1999 11,360.00 11,691.85 10,908.52
Feb 28, 1999 11,110.00 11,328.23 10,754.50
Mar 31, 1999 11,340.00 11,781.36 10,977.11
Apr 30, 1999 12,030.00 12,237.30 12,002.21
May 31, 1999 11,980.00 11,948.50 11,870.30
Jun 30, 1999 12,660.00 12,611.64 12,215.02
Jul 31, 1999 12,230.00 12,218.16 11,857.24
Aug 31, 1999 11,970.00 12,157.68 11,417.30
Sep 30, 1999 11,580.00 11,824.44 11,018.32
Oct 31, 1999 12,070.00 12,572.69 11,652.47
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 Growth 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 eight months since its start, the Opportunities Fund
returned 7.3%. The Russell large-cap, mid-cap and small-cap indices returned
11.6%, 9.8% and 10.4%, respectively. The Fund's returns were held back by its
value style being strongly out-of-favor. Each of the Russell indices has a
corresponding value index to show the effect of style on returns. The Russell
value-style large-cap, mid-cap and small-cap indices returned 8.9%, 3.7% and
4.7%, respectively.
THOMAS WHITE AMERICAN
OPPORTUNITIES FUND
TOP TEN HOLDINGS
ON OCTOBER 31, 1999
BASED ON TOTAL NET ASSETS
Company % of Total
Industry Net Assets
Global Crossing 1.6%
Communications
Siebel Systems, Inc. 1.3%
Technology
Apple Computer 1.1%
Technology
Adobe Systems, Inc. 1.1%
Technology
Royal Carribean 1.1%
Services
GTE Corporation 1.1%
Communications
Converse Technology 1.0%
Technology
Union BanCal Corporation 1.0%
Banking
Symantec Corporation 1.0%
Technology
Microchip Technology 0.9%
Technology
<PAGE>
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." A reprint of the article is being sent to all shareholders.
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 underperformance, 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 Growth Fund. This is because smaller-cap
stocks tend to rise and fall more than larger companies. The good news is that
smaller-cap stocks tend to outperform larger companies over time. We will
attempt to moderate this volatility in the following four ways.
First, we will use broad company diversification. This will reduce the
higher risk inherent in 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 October 31st, the Fund's wide diversification was reflected by the
fact that its top ten holdings represented just 11.2% of total assets. This
compares to the Morningstar average of all mid-cap funds of 34.9%.1
- -----------------
1 Data is the most recently available from Morningstar Principia (11/30/99). The
average was of the 920 funds that Morningstar categorized as mid-cap.
THOMAS WHITE AMERICAN
OPPORTUNITIES FUND
INDUSTRY DISTRIBUTION
ON OCTOBER 31, 1999
BASED ON LONG-TERM SECURITIES
Aerospace 0.2%
Banking 11.1%
Building 0.5%
Capital Goods 3.3%
Chemicals 3.0%
Communications 5.0%
Consumer Durables 2.0%
Consumer Retail 5.6%
Consumer Staples 6.9%
Energy 6.9%
Financial Diversified 4.1%
Health Care 7.7%
Industrial 11.6%
Insurance 3.7%
Metals 0.4%
Paper & Forest Products 0.7%
Services 10.6%
Technology 13.0%
Transportation 0.4%
Utilities 3.3%
Total 100.0%
<PAGE>
PERFORMANCE AT A GLANCE
Relative Performance American Russell Russell
October 31, 1999 Opportunity Midcap Midcap
Fund Index Value
- -----------------------------------------------------------------------------
Six Months -0.6% -1.2% -6.6%
Cumulative Total Return 7.3% 9.8% 3.7%
Since Inception
(March 4, 1999)
- -----------------------------------------------------------------------------
Russell 1000 Index measures the performance of the 1,000 largest companies in
the Russell 3000 Index. It represents approximately 89% of the total market
capitalizations of the Russell 3000 Index. Russell Midcap Index measures the
performance of the 800 smallest companies in the Russell 1000 Index. These
represent approximately 31% of the total market capitalization of the Russell
3000 Index. Russell 2000 Index measures the performance of the 2,000 smallest
companies in the Russell 3000 Index. This represents approximately 11% of the
total market capitalization of the Russell 3000 Index. All indices are unmanaged
and returns assume the reinvestment of dividends.
Pursuant to Rule 304(a) of Regulation S-T, the following table replaces a graph
showing growth of an initial $10,000 investment, assuming all dividend and
capital gain distributions reinvested, and various comparisons. The return since
inception (March 4, 1999) was 7.3% for the Fund.
The American Opportunities Fund
vs
the Russell Midcap Index
and the Midcap Value Index
March 4, 1999 to October 31, 1999
Date American Russell Russell Midcap
Opportunities Fund Midcap Value Index
Mar 4, 1999 10,000.00 10,000.00 10,000.00
Mar 31, 1999 9,990.00 10,340.76 10,136.21
Apr 30, 1999 10,790.00 11,104.66 11,096.21
May 31, 1999 10,790.00 11,072.81 11,142.54
Jun 30, 1999 11,210.00 11,463.34 11,269.65
Jul 31, 1999 10,900.00 11,148.67 10,987.47
Aug 31, 1999 10,570.00 10,859.92 10,607.76
Sep 30, 1999 10,390.00 10,477.65 10,070.87
Oct 31, 1999 10,730.00 10,974.29 10,368.00
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
(formerly the Thomas White World Fund)
(Ticker: TWWDX)
What a difference a year makes! At the beginning of the Fund's fiscal
year last November, investors were abandoning foreign mutual funds due to their
disappointing performance. In the fund year that had just finished October 1998,
the foreign indices had lagged the U.S. market by 18% (4.5% vs. 22.4%). This was
due to the unexpected meltdown of the Far East currencies in the fall of 1997.
Instead of reallocating monies out of rising US markets into falling
international markets, investors did just the opposite.
To their surprise, foreign funds came back strongly this year.
The clear lesson is that one should not try to trade between classes of
funds based on market timing. Success instead comes from a stable mix of funds
reflecting a long-term investment plan. Annual rebalancing to maintain the
plan's mix will tend to move monies out of expensive markets into those that are
undervalued.
The International Fund returned 18.8% in the fiscal year ending October
31, 1999. Since inception in June of 1994 the Fund's average annual return was
13.6%. Its hallmark has been smooth, consistent performance. This attractive
return configuration has resulted from careful diversification across countries
and industries. On October 31, the Fund held 170 companies in 36 countries.
The global financial turmoil, which climaxed in the fall of 1998, led to
strong business recoveries and rising markets this year. The world is again
indebted to Alan Greenspan for his deft handling of the panic. He also correctly
avoided overreacting to tight labor markets in the U.S. this year and has only
raised interest rates moderately. He correctly saw that technology-driven
productivity gains would moderate upward price pressures.
THOMAS WHITE INTERNATIONAL FUND
TOP TEN HOLDINGS
ON OCTOBER 31, 1999
BASED ON TOTAL NET ASSETS
Company % of Total
Industry, Country Net Assets
Total Fina 1.9%
Energy, France
HSBC Holdings 1.6%
Banking, Hong Kong
Nokia 1.4%
Communications, Finland
BP Amoco 1.4%
Energy, United Kingdom
Royal Dutch 1.4%
Energy, Netherlands
AGF 1.3%
Insurance, France
National Westminster Bank 1.3%
Banking, United Kingdom
Kon PTT 1.3%
Insurance, Netherlands
Telefonica 1.3%
Communications, Spain
Deutsche Telecom 1.3%
Communications, German
<PAGE>
<TABLE>
<S> <C> <C> <C> <C> <C> <C>
THE TWENTY-NINE YEAR PERFORMANCE OF
THE INTERNATIONAL EQUITY MARKET AND
ITS MAJOR REGIONAL COMPONENTS
- --------------------------------------------------------------------------------------------------------
THESE INDEX RETURNS ARE IN U.S. DOLLARS. FIVE-YEAR REGIONAL
MSCI INDICES Gross PERFORMANCE SUCCESS IS NUMBERED FROM #1 (BEST) TO #5 (WORST).
- --------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------
PERIOD: Jan. 1, 1970 PACIFIC EMERGING
to Oct. 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 (10/31) 9.5% 16.9% (#2) 20.3% (#1) 0.1% (#4) 1.8% (#3) -2.4% (#5)
- --------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------
1970-1999 12.7% 10.3% 13.4% 14.2% 10.2% N/A
- --------------------------------------------------------------------------------------------------------
1988-1999 8.3% 10.2% 14.8% 1.3% 10.8% 12.1%
- --------------------------------------------------------------------------------------------------------
</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, except for the current four-year plus period. The international returns
are followed by those of the world's regions.
Regional performances are highlighted using ranks from #1 (best) to #5 (worst)
to indicate the winners and losers in each five-year period. History shows
regional returns are random in their timing, with no area holding a permanent
monopoly on performance.
Note that the international market and its territories all have quite similar
long-term records. But observe the international index has a more stable return
pattern than any of its components. This is because regional bull and bear
markets tend to offset one another.
The Fund's design reflects your manager's belief that shareholders will benefit
from smoother international performance. A more stable portfolio encourages
investors to stay the course in falling market environment. This promotes
success in reaching long-term investment goals.
The MSCI developed country gross dividends return series is used for Europe,
Canada, Japan and the Pacific less Japan. The MSCI emerging markets gross
dividends return series starts on January 1, 1988. International returns reflect
the MSCI World less US index util the MSCII 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 OCTOBER 31, 1999
BASED ON LONG-TERM SECURITIES
- --------------------------------------------------------
CONTINENTAL EUROPE 41.2%
- --------------------------------------------------------
UNITED KINGDOM 16.4%
- --------------------------------------------------------
AFRICA & MIDDLE EAST 0.8%
- --------------------------------------------------------
CANADA 2.5%
- --------------------------------------------------------
UNITED STATES 2.6%
- --------------------------------------------------------
LATIN AMERICA 2.9%
- --------------------------------------------------------
JAPAN 17.6%
- --------------------------------------------------------
FAR EAST 7.2%
- --------------------------------------------------------
AUSTRALIA & NEW ZEALAND 4.1%
- --------------------------------------------------------
DEVELOPED MARKETS 95.3%
________________________________________________________
EMERGING MARKETS 4.7%
-----------
Total 100.0%
Much of the Fund's gain this year came from a strong rebound in the
Japanese stock market and its currency, the yen. Other sizable gains came from
the Emerging Market regions of the Far East, Latin America, South Africa and
Eastern Europe. While the UK market was strong, Continental Europe suffered from
slow growing economies and a weak Euro currency.
The International Fund (13.6% annualized) outperformed the average
international fund (10.4%) and world fund (13.2%) since its inception in June of
1994 through October 31, 1999. This year the Fund's return lagged the averages
since we raised our exposure in Japan later in the year than other managers. Our
analysts were hesitant to anticipate improvements in Japan as corporate earnings
were weak and valuations quite high. The second reason for our strong, but
trailing returns was our value style. As in our American funds, we enjoyed
excellent stock selection among technology companies, but this was offset by our
lower industry exposure due to record high valuation levels.
We are proud that the Fund has maintained a 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 0.49 places the Fund
in the top 7% 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
Pursuant to Rule 304(a) of Regulation S-T, the following table replaces a graph
showing growth of an initial $10,000 investment, assuming all dividend and
capital gain distributions reinvested, and various comparisons. The return since
inception (June 28, 1994) was 97.12% for the Fund. The one year return for the
Fund was 18.78%. The Fund's average total return since inception was 13.55%.
The International Fund
vs
the MSCI and Morningstar Indices
June 28, 1994 to October 31, 1999
<TABLE>
<S> <C> <C> <C> <C> <C> <C>
Date Thomas White Morningstar MSCI AC Morningstar MSCI AC MSCI World
International Fund Foreign Funds Ex USA World Funds Index Index
Jun 28, 1994 10,000.00 10,000.00 10,000.00 10,000.00 10,000.00 10,000.00
Jun 30, 1994 10,010.00 10,000.00 10,000.00 10,000.00 10,000.00 10,028.00
Jul 31, 1994 10,440.00 10,272.00 10,184.41 10,259.00 10,221.33 10,216.53
Aug 31, 1994 10,690.00 10,565.00 10,533.15 10,635.00 10,585.42 10,522.00
Sep 30, 1994 10,380.00 10,304.00 10,312.33 10,476.00 10,336.86 10,243.17
Oct 31, 1994 10,500.00 10,494.00 10,556.50 10,624.00 10,601.78 10,532.02
Nov 30, 1994 10,130.00 9,979.00 10,054.01 10,136.00 10,141.36 10,072.83
Dec 31, 1994 10,067.11 9,884.00 9,557.29 10,066.00 9,969.66 10,167.51
Jan 31, 1995 9,966.24 9,419.00 9,557.29 9,739.00 9,969.66 10,012.46
Feb 28, 1995 10,258.77 9,431.00 9,504.36 9,891.00 10,076.14 10,155.63
Mar 31, 1995 10,531.13 9,741.00 10,034.01 10,130.00 10,537.67 10,643.10
Apr 30, 1995 10,803.48 10,050.00 10,391.20 10,447.00 10,920.94 11,011.36
May 31, 1995 11,035.49 10,139.00 10,335.09 10,659.00 11,041.51 11,102.75
Jun 30, 1995 11,106.10 10,148.00 10,191.36 10,865.00 11,043.95 11,097.20
Jul 31, 1995 11,549.94 10,681.00 10,746.69 11,469.00 11,578.29 11,649.94
Aug 31, 1995 11,388.55 10,488.00 10,364.35 11,357.00 11,324.79 11,387.81
Sep 30, 1995 11,570.12 10,644.00 10,555.72 11,572.00 11,636.36 11,716.92
Oct 31, 1995 11,408.72 10,435.00 10,275.30 11,325.00 11,441.87 11,529.45
Nov 30, 1995 11,620.55 10,532.00 10,490.30 11,498.00 11,801.79 11,927.22
Dec 31, 1995 11,982.92 10,840.00 10,898.89 11,723.00 12,157.17 12,273.11
Jan 31, 1996 12,357.39 11,098.00 11,020.46 12,022.00 12,427.42 12,492.79
Feb 29, 1996 12,432.28 11,152.00 11,022.23 12,204.00 12,479.16 12,566.50
Mar 31, 1996 12,507.17 11,334.00 11,236.46 12,413.00 12,671.27 12,772.59
Apr 30, 1996 12,838.84 11,696.00 11,635.98 12,873.00 12,980.67 13,070.19
May 31, 1996 12,913.74 11,685.00 11,441.56 13,031.00 12,994.09 13,079.34
Jun 30, 1996 12,903.04 11,761.00 11,509.02 12,995.00 13,065.36 13,143.43
Jul 31, 1996 12,475.08 11,328.00 11,114.33 12,396.00 12,577.38 12,676.84
Aug 31, 1996 12,710.46 11,459.00 11,177.92 12,700.00 12,732.50 12,820.09
Sep 30, 1996 13,020.73 11,698.00 11,452.80 13,066.00 13,202.67 13,318.79
Oct 31, 1996 13,191.91 11,635.00 11,334.58 13,035.00 13,255.47 13,409.13
Nov 30, 1996 13,898.05 12,123.00 11,764.65 13,599.00 13,964.12 14,157.36
Dec 31, 1996 13,960.43 12,164.00 11,623.00 13,616.00 13,761.86 13,928.01
Jan 31, 1997 14,018.17 12,175.00 11,418.49 13,910.00 13,992.73 14,093.75
Feb 28, 1997 14,145.19 12,349.00 11,633.09 13,951.00 14,183.51 14,253.01
Mar 31, 1997 13,937.34 12,373.00 11,613.34 13,706.00 13,899.79 13,967.95
Apr 30, 1997 14,052.81 12,390.00 11,719.14 13,829.00 14,346.23 14,421.91
May 31, 1997 14,907.30 13,107.00 12,427.14 14,708.00 15,202.23 15,220.31
Jun 30, 1997 15,357.63 13,702.00 13,120.08 15,329.00 15,980.15 15,976.76
Jul 31, 1997 15,946.53 14,067.00 13,389.21 16,029.00 16,702.71 16,710.74
Aug 31, 1997 15,115.14 13,111.00 12,365.42 15,220.00 15,530.82 15,590.28
Sep 30, 1997 16,073.55 13,893.00 12,990.30 16,095.00 16,359.09 16,434.50
Oct 31, 1997 15,276.80 12,880.00 11,848.08 15,075.00 15,385.02 15,567.58
Nov 30, 1997 15,426.92 12,738.00 11,696.79 15,053.00 15,620.39 15,840.01
Dec 31, 1997 15,594.27 12,814.00 11,821.88 15,192.00 15,825.47 16,030.41
Jan 31, 1998 15,838.69 13,114.00 12,172.70 15,317.00 16,172.05 16,474.48
Feb 28, 1998 16,853.05 13,994.00 13,001.05 16,408.00 17,289.54 17,586.51
Mar 31, 1998 17,794.09 14,732.00 13,440.57 17,235.00 18,019.16 18,326.42
Apr 30, 1998 17,745.20 14,695.00 13,523.39 17,490.00 18,177.73 18,502.76
May 31, 1998 17,598.55 15,006.00 13,261.23 17,269.00 17,821.44 18,268.11
Jun 30, 1998 17,610.77 14,856.00 13,202.49 17,251.00 18,133.32 18,699.24
Jul 31, 1998 17,720.76 15,055.00 13,329.56 17,140.00 18,140.57 18,665.58
Aug 31, 1998 15,398.73 12,914.00 11,444.25 14,495.00 15,595.45 16,173.73
Sep 30, 1998 15,435.39 12,445.00 11,209.09 14,526.00 15,907.36 16,457.00
Oct 31, 1998 16,596.41 13,337.00 12,382.57 15,461.00 17,360.49 17,941.88
Nov 30, 1998 17,415.23 14,009.00 13,045.70 16,284.00 18,412.89 19,006.06
Dec 31, 1998 18,173.73 14,438.00 13,487.39 17,024.00 19,261.35 19,932.42
<PAGE>
Jan 31, 1999 18,213.18 14,575.00 13,473.47 17,349.00 19,652.36 20,365.98
Feb 28, 1999 17,779.22 14,237.00 13,187.48 16,790.00 19,170.88 19,821.32
Mar 31, 1999 18,029.08 14,728.00 13,837.63 17,371.00 20,043.15 20,643.71
Apr 30, 1999 18,883.85 15,456.00 14,545.29 18,225.00 20,921.04 21,454.62
May 31, 1999 18,200.68 14,850.00 13,885.64 17,750.00 20,197.17 20,667.75
Jun 30, 1999 19,001.03 15,670.00 14,557.84 18,741.00 21,227.23 21,628.83
Jul 31, 1999 19,297.46 16,106.00 14,867.70 18,813.00 21,124.28 21,561.78
Aug 31, 1999 19,312.28 16,267.00 14,953.04 18,760.00 21,124.28 21,519.95
Sep 30, 1999 19,030.67 16,365.00 15,032.29 18,617.00 20,884.52 21,309.05
Oct 31, 1999 19,712.46 16,973.00 15,600.51 19,370.00 21,946.08 22,412.86
</TABLE>
The above chart presents performance in terms of an initial $10,000 investment
in the Fund, assuming all dividends reinvested, and various benchmarks. The
return since inception was 97.1% for the Fund, 69.7% for the Morningstar Foreign
Fund index, 56.0% for the MSCI All Country World ex US, 93.7% for the
Morningstar World Funds Index, and 119.5% for the MSCI All Country Index. The
one-year return for the Fund was 18.8%. The Fund's average annual total return
since inception was 13.6%. The MSCI Indices are gross dividends. The Morningstar
Indices are from July 1, 1994.
Past performance does not guarantee future results. The investment return and
principal value of an investment in the Fund will fluctuate so that Fund shares,
when redeemed, may be worth more or less than their original cost.
<TABLE>
<S> <C> <C> <C> <C> <C>
The International Fund vs its Benchmarks
- --------------------------------------------------------------------------------------------------------
Thomas Morningstar MSCI Morningstar MSCI
White Foreign All Country World All
Relative Performance Int'l Stock World Stock Country
October 31, 1999 Fund Funds ex US Funds World
- --------------------------------------------------------------------------------------------------------
One Year 18.78% 27.27% 25.99% 25.28% 21.41%
- --------------------------------------------------------------------------------------------------------
Three Years 14.33% 13.41% 11.24% 14.11% 18.35%
- --------------------------------------------------------------------------------------------------------
13.55% 10.43% 8.68% 13.20% 15.85%
Average Annual Return
Since Inception (June 28, 1994)
- --------------------------------------------------------------------------------------------------------
Cumulative Total Return 97.12% 69.73% 56.01% 93.70% 119.46%
Since Inception (June 28, 1994)
- --------------------------------------------------------------------------------------------------------
Morningstar World Stock category represents 277 world stock mutual funds. This series starts July 1,
1994. MSCI All Country World is a compilation of the market indices for 47 developed and emerging
market countries. Morningstar Foreign Stock category representing 658 foreign diversified mutual
funds. The MSCI All Country World ex US represents the same countries as the All Country Index except
it does not include the U.S. All indices are unmanaged and returns assume the reinvestment of
dividends. The International Fund also assumes the reinvestment of dividends and capital gains
distributions.
- --------------------------------------------------------------------------------------------------------
</TABLE>
<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 companies that meet the Fund's
quality standards. Each shareholder, is a partial owner of 170 of the most
undervalued of these firms. International Fund Shareholders are at the very
epicenter of what is driving change in today's world: An unprecedented explosion
of highly beneficial global 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 globalb
capitalism. capitalism.
DEVELOPED MARKETS PACIFIC LATIN AMERICA
EUROPE Australia Argentina
Austria Hong Kong Brazil
Belgium Japan Chile
Denmark New Zealand Colombia
Finland Singapore Mexico
France Peru
German 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 Kingdon Turkey China
Indonesia
NORTH AMERICA MIDDLE EAST Korea
Canada Israel Malaysia
Philippines
AFRICA Taiwan
South Africa Thailand
The Fund takes full advantage of the extensive resources of the Global Capital
Institute. This investment research organization is owned by Thomas White
International, the Fund's manager. The Institute's professionals 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.
<PAGE>
DISTRIBUTIONS
An interim long-term capital gains distribution was declared on May 3,
1999. This was due to the strong performance of the Fund's U.S. holdings and was
done to allow shareholders to effectively plan their 1999 taxes. Management
anticipates that in most future years, the Fund will only declare capital gain
distributions annually in December.
DISTRIBUTIONS
May Interim December
1999* 1999
Ordinary Income $ ------- $ 0.0730
Short-Term Capital Gain $ ------- $ 0.0335
Long-Term Capital Gain $ 1.6304 $ 0.8211
- ------ ------
Total Per Share $ 1.6304 $ 0.9276
= ====== = ======
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 (11/30/99).
Morningstar proprietary rankings reflect historical risk-adjusted performance.
The rankings are subject to change every month. Morningstar rankings are
calculated from the funds' three-, five-, and ten-year average annual returns
(if applicable) in excess of 90-day Treasury bill returns with appropriate fee
adjustments, and a risk factor that reflects fund performance below 90-day
T-bill returns. The Fund received 4 stars for the three year period. 10% of the
funds in a category receive 5 stars, 22.5% receive 4 stars, 35% receive 3 stars,
22.5% receive 2 stars, and 10% receive 1 star. The fund was rated among 1073 and
621international 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 (11/30/99). The International Fund's Morningstar Risk
ranked 43 out of 621 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> <C>
THOMAS WHITE AMERICAN GROWTH FUND
Investment Portfolio October 31, 1999
- ---------------------------------------------------------------------------------------------------------------------
Industry
Issue Shares Value
- -----------------------------------------------------------------------------------------------------------------------
Common Stocks (99.3%)
- -----------------------------------
Aerospace (0.7%)
General Dynamics Corporation 1,700 $94,244
Northrop Grumman 900 49,387
Raytheon Co. 300 8,737
-------------
152,368
Banking (8.7%)
AmSouth Bancorporation 750 19,312
Bancwest Corp 3,900 163,069
Bank of America 2,900 186,687
Chase Manhattan Corporation 4,700 410,662
Comerica Inc. 5,000 297,187
First Union Corporation 300 12,806
Fleet Boston Corporation. 4,400 191,950
KeyCorp 300 8,381
M&T Bank Corporation 300 148,650
Mellon Bank Corporation 800 29,550
PNC Bank Corporation 800 47,700
Republic NY Corporation 2,700 170,606
UnionBanCal Corporation 5,100 221,531
Wachovia Corporation 300 25,875
-------------
1,933,966
Building (0.4%)
Vulcan Materials Co. 2,200 90,887
Capital Goods (0.7%)
Caterpillar Inc. 2,600 143,650
Chemicals (2.1%)
Dow Chemical Co. 1,000 118,250
IMC Global Inc. 2,200 28,050
PPG Industries, Inc. 2,100 127,312
Union Carbide Coproration 3,100 189,100
-------------
462,712
Communications (8.2%)
AT&T 8,200 383,350
Bell Atlantic Corporation 9,300 603,919
Cincinnati Bell Inc. 3,800 79,087
Global Crossing 1,025 35,491
GTE Corporation 1,200 90,000
Telephone & Data Systems, Inc. 1,200 138,300
U S WEST, Inc. 7,900 482,394
-------------
1,812,541
Consumer Durables (1.8%)
Dana Corporation 1,800 53,212
Ford Motor Co. 4,600 252,425
Goodyear Tire & Rubber Co. 1,800 74,362
Maytag Corporation 300 12,019
-------------
392,018
<PAGE>
Consumer Retail (5.4%)
Best Buy Co., Inc. 3,600 200,025
Dayton Hudson 2,600 168,025
Federated Department Stores, Inc.* 500 21,344
The Gap, Inc. 4,350 161,494
Intimate Brands, Inc. 735 30,135
Liz Claiborne 3,700 148,000
Lowe's Companies, Inc. 600 33,000
TJX Companies, Inc. 5,900 160,037
VF Corporation 400 12,025
Wal-Mart Stores, Inc. 4,800 272,100
-------------
1,206,185
Consumer Staples (7.1%)
Albertson's, Inc. 300 10,894
Clorox Co. 3,800 155,563
ConAgra, Inc. 7,100 185,044
CVS Corporation 4,300 186,781
H.J. Heinz Co. 5,400 257,850
Kroger Co. 5,200 108,225
Phillip Morris Companies Inc. 4,900 123,419
Quaker Oats Co. 400 28,000
Safeway Inc.* 300 10,594
Sara Lee Corporation 8,100 219,206
SUPERVALU Inc. 5,700 119,700
Walgreen Co. 6,400 161,200
-------------
1,566,476
Energy (6.7%)
Ashland Inc. 1,600 52,800
Chevron Corporation 2,200 200,888
Coastal Corporation 1,800 75,825
Conoco Inc. Class A 500 13,719
Consolidated Natural Gas Co. 300 19,200
Enron Corporation 6,800 271,575
Exxon Corporation 600 44,438
Nicor Inc. 3,200 124,000
Phillips Petroleum Co. 2,800 130,200
Royal Dutch Petroleum Co. 4,400 263,725
Schlumberger 300 18,169
Texaco Inc. 300 18,413
USX-Marathon 8,200 238,825
-------------
1,471,777
Financial Diversified (7.4%)
American Express Co. 200 30,800
Berkshire Hathaway Class B* 150 313,500
Capital One Financial Corporation 3,600 190,800
Citigroup Inc. 3,750 202,969
<PAGE>
Fannie Mae 2,500 176,875
Freddie Mac 2,900 156,781
Lehman Brothers Holdings Inc. 1,200 88,425
MBNA Corporation 6,500 179,563
Morgan Stanley Dean Witter & Co. 2,100 231,656
T. Rowe Price Associates, Inc. 1,800 63,900
-------------
1,635,269
Health Care (11.0%)
Abbott Laboratories 10,200 411,825
Amgen Inc.* 7,800 622,050
Biogen Inc. 1,300 96,363
Bristol-Myers Squibb Co. 6,400 491,600
Cardinal Health, Inc. 2,700 116,438
Cigna Corporation 600 44,850
Eli Lilly and Co. 200 13,775
HEALTHSOUTH Corp.* 600 3,450
Mallinckrodt Inc. 1,800 61,088
McKesson HBOC, Inc. 200 4,013
Merck & Co., Inc. 6,700 533,069
PacifiCare Health Systems, Inc. 900 27,606
-------------
2,426,127
Industrial (9.3%)
AlliedSignal Inc. 600 34,162
Cooper Industries, Inc. 1,000 43,063
Eastman Kodak Co. 3,700 255,069
Emerson Electric Co. 4,400 264,275
General Electric Co. 3,400 460,913
Hubbell Inc. Cl B 1,100 30,456
Illinois Tool Works Inc. 4,200 307,650
Johnson Controls, Inc. 700 42,525
National Service Industries, Inc. 1,700 54,825
Pentair, inc. 1,500 56,437
Rockwell International Corporation 2,700 130,781
Textron Inc. 1,000 77,187
Thomas & Betts Corporation 1,300 58,338
TRW Inc. 5,400 231,525
-------------
2,047,206
Insurance (4.2%)
Ace Limited 800 15,550
Allstate Corporation 5,300 152,375
American International Group, Inc. 2,750 283,078
American National Insurance Co. 1,800 123,300
AXA Financial, Inc. 2,800 89,775
Conseco, Inc. 6,300 153,169
MBIA Inc. 400 22,825
XL Capital Ltd. 1,700 91,269
-------------
931,341
<PAGE>
Metals (0.3%)
Alcoa Inc. 1,100 66,825
Paper & Forest Products (0.5%)
Weyerhaeuser Co. 1,000 59,687
Georgia-Pacific Group 1,200 47,625
-------------
107,312
Services (7.7%)
Black & Decker Corporation 1,800 77,400
Cox Communications, Inc.* 200 9,088
Darden Restaurants, Inc. 4,400 83,875
Gannett Co., Inc. 2,500 192,812
Genuine Parts Company 3,200 83,400
Knight Ridder 1,500 95,250
Marriott International, Inc. 700 23,581
Mattel, Inc. 3,400 45,475
New York Times Co. 2,200 88,550
Royal Caribbean Cruises Ltd. 2,400 127,350
SABRE Group Holdings, Inc.* 600 26,662
Time Warner Inc. 3,000 209,063
Times Mirror Co. 1,900 137,037
TRICON Global Restaurants, Inc.* 3,500 140,656
Viacom Inc. Class B* 4,900 219,275
Xerox Corporation 5,200 145,600
-------------
1,705,074
Technology (13.0%)
Adobe Systems Inc.* 3,200 223,800
Apple Computer, Inc.* 1,200 96,150
Conexant Systems, Inc.* 200 18,675
EMC Corporation* 4,800 350,400
Intel Corporation 2,900 224,569
International Business Machines Corporation 2,700 265,613
Lexmark International Group, Inc.* 800 62,450
Lucent Technologies Inc. 4,400 282,700
Microsoft Corporation* 3,400 314,713
Motorola, Inc. 1,900 185,131
Novell, Inc.* 2,400 48,150
Oracle Corporation* 400 19,025
QUALCOMM Inc.* 600 133,650
Tellabs, Inc. 4,600 290,950
Texas Instruments Inc. 1,000 89,750
Unisys Corporation* 7,600 184,300
Xilinx Inc.* 1,100 86,488
-------------
2,876,514
Transportation (0.7%)
Burlington Northern Santa Fe Corporation 500 15,938
Union Pacific Corporation 2,600 144,950
-------------
160,888
<PAGE>
Utilities (3.4%)
Carolina Power &Light Co. 800 27,600
DTE Energy Co. 700 126,112
Edison International 1,000 106,650
Entergy Corporation 5,000 149,687
Florida Progress Corporation 1,400 64,137
FPL Group, Inc. 2,700 135,844
PG&E Corporation 2,800 64,225
Public Service Enterprise Group Inc. 2,000 79,125
-------------
753,380
-------------
Total Common Stocks (Cost $21,701,684) 21,942,516
- -----------------------------------------------------------------------------------------------------------------------
Short-Term Obligations (0.8%)
Principal
Amount
Firstar Bank USA Variable Demand Note 5.08%, due 12/12/99 $125,924 125,924
Wisconsin Corp Central Credit Union Variable
Demand Note 5.08%, due 4/1/00 59,393 59,393
-------------
Total Short-Term Obligations (Cost $185,317) 185,317
- -----------------------------------------------------------------------------------------------------------------------
Total Investments: 100.1% (Cost $21,887,001) 22,127,833
Other Assets, Less Liabilities: (0.1)% (13,605)
---------
=============
Total Net Assets: 100.0% $22,114,228
======
=============
* Non-Income Producing Securities
See Notes to Financial Statements.
<PAGE>
THOMAS WHITE AMERICAN OPPORTUNITIES FUND
Investment Portfolio October 31, 1999
- --------------------------------------------------------------------------------------------------------------------------------
Industry
Issue Shares Value
- ---------------------------------------------------------------------------------------------------------------------------------
Common Stocks (99.5%)
- ---------------------------------------------------
Aerospace (0.2%)
General Dynamics Corporation 300 $16,631
Banking (11.0%)
AmSouth Bancorporation 2,250 57,938
BancWest Corporation 1,800 75,263
Chase Manhattan Corporation 900 78,637
Comerica Inc. 1,100 65,381
Community First Bankshares, Inc. 1,900 36,159
Cullen/Frost Bankers, Inc. 1,600 46,200
FirstMerit Corporation 1,500 39,656
Fleet Boston Corporation 1,700 74,163
Hibernia Corporation 4,600 65,263
Imperial Bancorp* 2,500 62,031
M&T Bank Corporation 150 74,325
Mellon Bank Corporation 2,200 81,262
National City Corporation 2,200 64,900
North Fork Bancorporation, Inc. 2,000 41,375
SouthTrust Corporation 2,000 80,000
UnionBanCal Corporation 2,300 99,906
Wachovia Corporation 600 51,750
-------------
1,094,209
Building (0.4%)
USG Corporation 400 19,825
Vulcan Materials Co. 600 24,787
-------------
44,612
Capital Goods (3.3%)
Briggs & Stratton Corporation 600 35,062
Caterpillar Inc. 800 44,200
Donaldson Company, Inc. 1,700 39,525
Graco Inc. 1,500 50,250
Kaydon Corporation 1,200 29,775
Lincoln Electric Holdings, Inc. 1,500 33,562
Manitowoc Company, Inc. 1,200 35,850
Tennant Co. 900 29,700
York International Corporation 1,300 30,631
-------------
328,555
Chemicals (3.0%)
BF Goodrich Co. 1,200 28,425
CK Witco Corporation 1,600 15,000
Cytec Industries Inc.* 1,000 25,812
Dow Chemical Co. 300 35,475
Ferro Corporation 1,200 24,450
IMC Global Inc. 1,400 17,850
OMNOVA Solutions Inc. 2,200 15,400
PPG Industries, Inc. 800 48,500
Solutia Inc. 1,400 24,062
Union Carbide Corporation 500 30,500
W.R. Grace & Co.* 2,100 31,369
-------------
296,843
Communications (5.0%)
Bell Atlantic 700 45,456
Cincinnati Bell Inc. 4,300 89,494
Global Crossing 4,715 163,257
GTE Corporation 1,400 105,000
U S WEST, Inc. 1,500 91,594
-------------
494,801
Consumer Durables (2.0%)
Arvin Industries, Inc. 600 17,100
Dana Corporation 500 14,781
Fleetwood Enterprises, Inc. 700 15,269
Ford Motor Co. 400 21,950
Gentex Corporation* 1,700 29,219
Goodyear Tire & Rubber Co. 400 16,525
Maytag Corporation 400 16,025
Meritor Automotive, Inc. 1,400 23,713
Navistar International Corporation* 500 20,844
PACCAR Inc. 500 23,562
-------------
198,988
Consumer Retail (5.5%)
American Eagle Outfitters, Inc. 1,000 42,812
AnnTaylor Stores Corporation 900 38,306
Dayton Hudson Corporation 1,000 64,625
Intimate Brands, Inc. 1,470 60,270
Liz Claiborne, Inc. 1,900 76,000
Ross Stores, Inc. 2,600 53,625
Talbots, Inc. 1,200 56,475
VF Corporation 1,300 39,081
Wal-Mart Stores, Inc. 1,400 79,363
Zale Corporation* 900 37,687
-------------
548,244
Consumer Staples (6.9%)
Alberto-Culver Co. CL A 2,700 54,000
Brown Forman Corporation 900 60,750
Canandaigua Brands, Inc.* 1,000 60,500
ConAgra, Inc. 2,000 52,125
CVS Corporation 1,300 56,469
Hannaford Bros. Co. 1,100 77,069
Helen of Troy Limited* 2,800 25,025
IBP, Inc. 3,000 71,812
Kroger Co. 2,000 41,625
Longs Drug Stores Corporation 1,700 46,325
Phillip Morris Companies Inc. 1,300 32,744
SUPERVALU Inc. 2,500 52,500
UST Inc. 1,900 52,606
-------------
683,550
Energy (6.9%)
Ashland Inc. 1,500 49,500
Atmos Energy Corporation 800 18,150
Coastal Corporation 1,800 75,825
Columbia Energy Group 1,200 78,000
Energen Corporation 900 16,650
Exxon Corporation 900 66,656
Mitchell Energy/Dev'b' 3,000 71,437
Phillips Petroleum Co. 1,500 69,750
Questar Corporation 4,600 82,800
Royal Dutch Petroleum Co. 1,300 77,919
Tosco Corporation 3,000 75,937
-------------
682,624
Financial Diversified (4.0%)
A.G. Edwards, Inc. 700 21,044
AMCORE Financial, Inc. 1,600 37,800
Berkshire Hathaway Class B* 15 31,350
Capital One Financial Corporation 900 47,700
Citigroup Inc. 900 48,712
Countrywide Credit Industries, Inc. 900 30,544
Fannie Mae 500 35,375
Freddie Mac 600 32,437
John Nuveen Co. 900 32,175
Morgan Stanley Dean Witter & Co. 400 44,125
T. Rowe Price Associates, Inc. 1,100 39,050
-------------
400,312
Forest & Paper (0.7%)
Mead Corporation 800 28,800
Wausau-Mosinee Paper Corporation 1,500 18,937
Weyerhaeuser Co. 400 23,875
-------------
71,612
Health Care (7.7%)
Abbott Laboratories 1,400 56,525
Allergan, Inc. 500 53,687
Amgen Inc.* 1,000 79,750
Arrow International, Inc. 1,900 51,537
Biogen, Inc.* 1,200 88,950
Bristol-Myers Squibb Co. 900 69,131
CIGNA Corporation 500 37,375
DENTSPLY International Inc. 1,500 34,781
Dura Pharmaceuticals, Inc. 3,400 43,456
First Health Group Corporation 500 11,625
HEALTHSOUTH Corporation* 4,500 25,875
Humana Inc.* 2,000 13,750
Merck & Co., Inc. 800 63,650
Mylan Laboratories Inc. 2,300 41,256
Orthodontic Centers of America, Inc.* 2,300 31,625
PacifiCare Health Systems, Inc.* 500 19,719
Tenet Healthcare Corporation* 2,000 38,875
-------------
761,567
Industrial (11.6%)
AlliedSignal Inc. 900 51,244
AptarGroup, Inc. 1,400 37,625
Baldor Electric Co. 1,900 36,931
C&D Technologies, Inc. 1,500 48,188
CLARCOR Inc. 2,200 37,538
Cooper Industries, Inc. 1,000 43,063
Crane Co. 1,600 32,700
Dionex Corporation* 1,000 44,438
Eastman Kodak Co. 700 48,256
GATX Corporation 1,000 33,187
GenCorp Inc. 2,200 25,025
General Electric Co. 400 54,225
Harris Corporation 1,400 31,413
Hillenbrand Industries, Inc. 1,000 33,125
Illinois Tool Works Inc. 800 58,600
Johnson Controls, Inc. 700 42,525
Littelfuse, Inc.* 2,100 46,725
Myers Industries, Inc. 2,200 30,938
National Service Industries, Inc. 1,000 32,250
Pentair, Inc. 1,200 45,150
Plantronics, Inc.* 600 35,138
Plexus Corporation* 1,100 29,150
Rockwell International Corporation 1,000 48,437
Thomas & Betts Corporation 1,100 49,362
Timken Co. 1,700 30,494
Trinity Industries, Inc. 1,400 41,738
TRW Inc. 900 38,587
W.W. Grainger, Inc. 1,500 63,563
-------------
1,149,615
<PAGE>
Insurance (3.6%)
Allstate Corporation 1,100 31,625
Ambac Financial Group, Inc. 700 41,825
American Financial Group, Inc. 1,100 32,588
American International Group, Inc. 37500 38,602
American National Insurance Co. 400 27,400
Arthur J. Gallagher & Co. 500 25,875
Conseco, Inc. 1,200 29,175
Everest Reinsurance Holdings, Inc. 1,100 28,325
Fidelity National Financial, Inc. 900 14,119
HCC Insurance Holdings, Inc. 1,000 11,250
LandAmerica Financial Group, Inc. 500 9,281
Lincoln National Corporation 1,000 46,125
Old Republic International Corporation 1,900 26,006
-------------
362,196
Metals (0.4%)
Alcoa Inc. 600 36,450
Services (10.6%)
Black & Decker Corporation 1,400 60,200
Bob Evans Farms, Inc. 1,700 23,375
Brinker International, Inc.* 1,400 32,638
Consolidated Graphics, Inc.* 700 14,000
Cox Communications, Inc. 184 8,361
Deluxe Corporation 2,000 56,500
Diebold, Inc. 2,400 63,000
Grey Advertising Inc. 100 36,100
Knight Ridder 1,300 82,550
Marriott International, Inc. 1,900 64,006
Pre-Paid Legal Services, Inc.* 1,400 33,950
Royal Caribbean Cruises Ltd. 2,000 106,125
SABRE Group Holdings, Inc.* 1,700 75,544
Time Warner Inc. 500 34,844
Times Mirror Co. 1,200 86,550
TRICON Global Restaurants, Inc.* 1,100 44,206
True North Communications Inc. 1,600 64,500
United Stationers Inc. 2,200 56,100
Valassis Communications, Inc.* 1,050 45,150
Viacom Inc. Class B* 600 26,850
Xerox Corporation 1,200 33,600
-------------
1,048,149
Technology (13.0%)
Adaptec, Inc.* 1,900 85,500
Adobe Systems Inc. 1,600 111,900
Apple Computer, Inc.* 1,400 112,175
Comverse Technology, Inc.* 900 102,150
EMC Corporation* 1,000 73,000
Intel Corporation 800 61,950
International Business Machines Corporation 600 59,025
Lexmark International Group, Inc.* 1,000 78,063
Linear Technology Corporation 900 62,944
Microchip Technology Inc.* 1,400 93,275
Microsoft Corporation* 600 55,538
Oracle Corporation* 1,400 66,588
QUALCOMM Inc.* 250 55,688
Siebel Systems, Inc.* 1,200 131,775
Symantec Corporation* 2,000 95,500
Unisys Corporation* 1,700 41,225
-------------
1,286,296
Transportation (0.4%)
Burlington Northern Santa Fe Corporation 600 19,125
Union Pacific Corporation 400 22,300
-------------
41,425
Utilities (3.3%)
Carolina Power &Light Co. 700 24,150
DTE Energy Co. 800 26,550
Florida Progress Corporation 900 41,231
Hawaiian Electric Industries, Inc. 800 27,000
IPALCO Enterprises, Inc. 1,200 24,525
NSTAR 1,000 38,063
Otter Tail Power Co. 600 25,200
PG&E Corporation 900 20,644
PP&L Resources, Inc. 1,600 43,300
RGS Energy Group, Inc. 1,100 27,431
United Illuminating Co. 600 31,050
-------------
329,144
Total Common Stocks (Cost $9,314,259) 9,875,823
-------------
- ---------------------------------------------------------------------------------------------------------------------------------
Short-Term Obligations (0.3%)
Principal
Amount
Firstar Bank USA Variable Demand Note 5.08%, due 12/12/99 3,202 3,202
Wisconsin Corp Central Credit Union Variable
Demand Note 5.08%, due 4/1/00 27,382 27,382
-------------
Total Short-Term Obligations (Cost $30,584) 30,584
- ---------------------------------------------------------------------------------------------------------------------------------
Total Investments: 99.8% (Cost $9,344,843) 9,906,407
Other Assets, Less Liabilities: 0.2% 24,247
--------
=============
Total Net Assets: 100.0% $9,930,654
======
=============
* Non-Income Producing Securities
See Notes to Financial Statements.
<PAGE>
THOMAS WHITE INTERNATIONAL FUND+
Investment Portfolio October 31, 1999
Country Issue Industry Shares Value
- -----------------------------------------------------------------------------------------------------------------------------------
COMMON STOCKS: 98.6%
- -----------------------------------------------------------------------------------------------------------------------------------
ARGENTINA: 0.2%
Perez Energy 8,100 $48,767
Telecom Argentina Communications 8,000 44,004
------------
92,771
- -----------------------------------------------------------------------------------------------------------------------------------
AUSTRALIA: 3.9%
Broken Hill Property Metals & Mining 8,300 85,939
Fosters Breweries Group Consumer Staples 44,000 117,194
National Australia Bank ADR Banking 4,300 337,281
National Australia Bank Banking 18,821 290,929
Telstra Corporation Communications 103,200 526,031
Woodside Petroleum Energy 19,300 116,497
Woolworths Consumer Retail 37,700 128,350
------------
1,602,221
- -----------------------------------------------------------------------------------------------------------------------------------
BELGIUM: 3.0%
Delhaize Consumer Retail 3,700 260,254
Fortis AG Insurance 8,500 287,089
GBL Financial Diversified 1,200 207,828
Solvay Chemicals 6,200 475,894
------------
1,231.065
- -----------------------------------------------------------------------------------------------------------------------------------
BRAZIL: 1.1%
Eletrobras PNB Utilities 6,284,000 113,740
Petrobras PN Energy 409,000 66,299
Telebras ADR Communications 2,400 186,900
Vale do Rio Doce PN Metals & Mining 4,600 92,982
------------
459,921
- -----------------------------------------------------------------------------------------------------------------------------------
CANADA: 2.5%
BCE Inc. Communications 7,700 463,771
Quebecor Incorporated Class B Services 7,800 186,108
Royal Bank of Canada Banking 4,800 207,024
Shell Canada Energy 9,100 191,737
------------
1,048,640
- -----------------------------------------------------------------------------------------------------------------------------------
CZECH REPUBLIC: 0.3%
SPT Telecom* Communications 5,000 75,455
TABAK Consumer Staples 200 44,225
------------
119,680
<PAGE>
FINLAND: 1.4%
Nokia A Communications 5,200 595,341
- -----------------------------------------------------------------------------------------------------------------------------------
FRANCE: 9.2%
AGF Insurance 9,900 552,082
Altran Technology Technology 1,200 411,490
B N P Banking 4,100 360,217
Cap Gemini Technology 3,200 484,848
L' Oreal Consumer Staples 450 286,458
Renault Consumer Durables 5,600 289,899
Societe Generale Banking 1,700 370,265
Suez Lyon Eaux Utilities 1,700 274,569
Total Fina Energy 5,833 804,001
------------
3,833,829
- -----------------------------------------------------------------------------------------------------------------------------------
GERMANY: 6.8%
BASF Chemicals 9,700 432,743
Commerzbank Banking 10,300 392,861
Deutsche Telecom Communications 11,800 542,571
GEA AG VZ Industrial 6,300 195,549
Man AG VZ Industrial 13,400 270,707
R W E Vorzuege Utilities 6,000 241,793
Schering AG Healthcare 3,300 392,708
Thyssen -Krupp Industrial 15,000 355,113
------------
2,824,045
- -----------------------------------------------------------------------------------------------------------------------------------
GREECE: 0.7%
Alpha Credit Bank Banking 1,554 118,830
EFG Eurobank Banking 1,200 53,183
Ergo Bank Banking 410 40,104
OTE Communications 3,555 75,322
------------
287,439
- -----------------------------------------------------------------------------------------------------------------------------------
HONG KONG: 5.2%
China Telecom* Communications 103,600 354,706
CLP Holdings Utilities 25,900 118,682
Hong Kong Electric Utilities 44,800 136,954
HSBC Holdings Banking 54,000 648,151
Hutchinson Industrial 25,200 253,005
Johnson Electric Industrial 30,000 162,183
New World Development Financial Diversified 65,300 123,554
SHK Properties Financial Diversified 31,600 255,230
Smartone Telecom Communications 28,400 100,161
---------
2,152,626
<PAGE>
------------
HUNGARY: 0.3%
Matav ADR Communications 4,400 126,775
- -----------------------------------------------------------------------------------------------------------------------------------
INDONESIA: 0.3%
Indosat Communications 23,000 37,244
Tambang Timah Metals & Mining 53,000 41,748
Telkom Indonesia Communications 108,000 51,203
------------
130,195
- -----------------------------------------------------------------------------------------------------------------------------------
ISRAEL: 0.3%
Bezeq Israel Telecom Communications 17,000 69,306
IDB Holding Corp. Financial Diversified 2,000 55,865
------------
125,171
- -----------------------------------------------------------------------------------------------------------------------------------
ITALY: 1.6%
Mediaset Services 38,700 383,169
San Paolo IMI Banking 22,600 297,719
------------
680,888
- -----------------------------------------------------------------------------------------------------------------------------------
JAPAN: 17.3%
Amway Japan Ltd. Consumer Retail 15,000 152,496
Asahi Bank Banking 23,000 204,268
Asahi Chemical Industries Chemicals 17,000 102,717
Bank Tokyo-Mitsubishi Banking 13,000 215,450
Canon Technology 6,000 169,759
Chubu Electric Power Utilities 8,000 136,498
Dai Nippon Printing Services 5,000 91,162
Daiwa House Industries Building 10,000 91,497
Daiwa Securities Financial Diversified 12,000 128,096
East Japan Railway Transportation 50 306,431
Familymart Consumer Retail 4,000 278,137
Fuji Heavy Industries Consumer Durables 20,000 169,950
Fuji Photo Film Services 5,000 160,648
Fujitsu Technology 7,000 210,809
Honda Motor Consumer Durables 5,000 211,001
KAO Corporation Consumer Staples 12,000 365,990
Kirin Brewery Consumer Staples 12,000 137,418
Nintendo Services 2,400 381,182
Nippon Telephone & Telegraph Communications 25 383,638
Nippon Telephone & Telegraph Mobile Communications 15 398,504
Olympus Optical Technology 15,000 202,848
Ono Pharmaceutical Health Care 5,000 160,648
Pioneer Electric Technology 8,000 142,790
Rohm Technology 1,100 246,343
Sankyo Health Care 4,000 113,940
<PAGE>
Sanwa Bank Banking 13,000 193,382
Shimano Consumer Durables 7,000 174,555
Shin-Etsu Chemical Chemicals 3,000 123,723
Shohkoh Fund Financial Diversified 200 122,380
Sony Corporation Technology 2,000 311,897
Suzuki Motor Consumer Durables 9,000 136,728
TDK Corporation Technology 2,000 195,847
Tokyo Electric Power Utilities 6,000 134,081
Toyo Seikan Metals & Mining 5,000 108,857
Yamanouchi Pharmaceutical Health Care 7,000 317,556
Yasuda Fire & Marine Insurance Insurance 36,000 243,763
------------
7,224,989
- -----------------------------------------------------------------------------------------------------------------------------------
MALAYSIA: 0.6%
Golden Hope Plantation Consumer Staples 39,000 31,200
Perlis Plantation Consumer Staples 43,750 45,128
Petronas Gas Utilities 30,000 62,763
Telekom Malaysia Communications 29,000 89,288
------------
228,379
- -----------------------------------------------------------------------------------------------------------------------------------
MEXICO: 1.5%
Cemex CPO Building 20,400 94,858
Telefonos de Mexico ADR Communications 7,400 530,100
------------
624,958
- -----------------------------------------------------------------------------------------------------------------------------------
NETHERLANDS: 8.8%
ABN-AMRO Holdings Banking 13,500 326,562
Ahold Consumer Retail 7,500 230,429
Fortis Amev Cert Insurance 11,200 385,707
Hagemeyer Consumer Retail 9,900 203,020
Heineken Consumer Staples 5,800 295,920
ING Group Insurance 8,847 522,032
Kon PTT Communications 10,700 549,298
Philips Electronics Industrial 2,700 276,988
Randstad Holdings Services 5,800 294,149
Royal Dutch Energy 9,800 585,999
------------
3,670,104
- -----------------------------------------------------------------------------------------------------------------------------------
NEW ZEALAND: 0.2%
Lion Nathan Limited Consumer Staples 33,000 71,260
- -----------------------------------------------------------------------------------------------------------------------------------
PAKISTAN: 0.1%
Pakistan Telephone Communications 650 23,400
<PAGE>
PHILIPPINES: 0.3%
Manila Electric Utilities 18,000 49,376
Philippines Long Distance Communications 4,200 87,456
------------
136,832
- -----------------------------------------------------------------------------------------------------------------------------------
POLAND: 0.2%
BPH Banking 1,900 90,980
- -----------------------------------------------------------------------------------------------------------------------------------
RUSSIA: 0.1%
Lukoil ADR Energy 800 25,400
Gazprom ADR* Energy 3,500 26,147
------------
51,547
- -----------------------------------------------------------------------------------------------------------------------------------
SINGAPORE: 1.9%
City Development Financial Diversified 13,000 67,292
Development Bank of Singapore Banking 11,630 131,602
Singapore Airlines Transportation 21,400 220,259
Singapore Telecom Communications 202,100 384,394
------------
803,547
- -----------------------------------------------------------------------------------------------------------------------------------
SOUTH AFRICA: 0.5%
Anglo American Corp SA Metals & Mining 1,100 58,549
De Beers Metals & Mining 1,400 38,238
Liberty Life Association Insurance 1,400 12,989
Nedcor Banking 700 13,764
Rembrandt Group Consumer Staples 7,200 52,972
South African Brewery Consumer Staples 3,714 32,915
------------
209,427
- -----------------------------------------------------------------------------------------------------------------------------------
SOUTH KOREA: 1.0%
Pohang Iron & Steel Metals & Mining 2,200 264,110
SK Telecom Communications 134 154,723
------------
418,833
- -----------------------------------------------------------------------------------------------------------------------------------
SPAIN: 2.1%
Telefonica de Espana Communications 33,300 547,991
U Fenosa Utilities 23,300 341,017
------------
889,008
<PAGE>
- ---------------------------------------------------------------------------------------------------------------------------------
SWEDEN: 3.2%
Electrolux B Consumer Durables 22,700 452,647
Nordbanken Holdings Banking 69,200 403,865
Skanska B Building 5,500 201,288
Stora Enso R Forest & Paper 21,000 279,590
------------
1,337,390
- -----------------------------------------------------------------------------------------------------------------------------------
SWITZERLAND: 4.4%
Adecco I Services 655 389,886
Nestle AG Consumer Staples 270 519,809
Novartis Reg Health Care 200 298,605
Richemont I Consumer Staples 120 228,826
Roche GS Health Care 34 405,212
------------
1,842,338
- -----------------------------------------------------------------------------------------------------------------------------------
THAILAND: 0.4%
Advanced Information Service Communications 11,900 138,712
Thai Airways International* Transportation 30,000 35,940
------------
174,652
- -----------------------------------------------------------------------------------------------------------------------------------
TURKEY: 0.4%
Akbank Banking 2,690,400 41,701
Arcelik Consumer Durables 2,112,000 77,933
KOC Holdings Consumer Durables 566,200 57,073
------------
176,707
- -----------------------------------------------------------------------------------------------------------------------------------
UNITED KINGDOM: 16.2%
Allied Domecq Consumer Staples 61,800 345,857
Allied Zurich Insurance 16,300 195,473
Bank of Scotland Banking 23,900 298,482
Bass Consumer Staples 4,573 49,684
BG Plc Utilities 65,500 354,990
BP Amoco Energy 60,800 589,724
Boots Consumer Retail 8,527 87,606
British Energy Utilities 49,100 333,571
British Telecom Communications 28,000 507,556
Corus Group Metals & Mining 96,800 183,484
Daily Mail & Trust Services 4,900 251,871
GKN Industrial 14,800 237,334
Glaxo Wellcome Health Care 15,200 448,034
Halifax Banking 28,582 362,643
Legal & General Insurance 38,400 105,888
National Westminster Bank Banking 24,200 550,136
Rolls Royce Aerospace 71,300 253,471
Smithkline Beecham Health Care 30,700 401,062
Sun Life & Province Insurance 14,000 104,601
Tesco Consumer Retail 54,200 163,229
Unilever Consumer Staples 24,285 224,566
Vodaphone Communications 105,500 482,536
WPP Group Services 18,000 196,389
------------
6,728,187
<PAGE>
- -----------------------------------------------------------------------------------------------------------------------------------
UNITED STATES: 2.6%
EMC Corporation* Technology 5,400 394,200
Lexmark International Group, Inc.* Technology 5,000 390,311
Rockwell International Corporation Industrial 5,700 276,094
------------
1,060,605
Total Common Stocks (Cost $34,299,596) 41,073,750
- -----------------------------------------------------------------------------------------------------------------------------------
Total Investments 98.6% (Cost $34,299,596) 41,073,750
Other Assets, Less Liabilities: 1.4% 591,592
============ ==============
Total Net Assets: 100% $41,665,342
============ ==============
* Non-Income Producing Securities
+ Formerly the Thomas White World Fund, see Note 5.
See Notes to Financial Statements.
<PAGE>
Thomas White FUNDS FAMILY
Statements of Assets and Liabilities
October 31, 1999
- -------------------------------------------------------------------------------------------------------------------------
American American
Growth Fund Opportunities International
Fund Fund+
--------------- ---------------- ---------------
ASSETS
Investments in securities at value1 $ 22,127,833 $ 9,906,407 $ 41,073,750
Cash ------- ------- 521,920
Receivables:
Dividends and interest 21,331 6,228 107,677
Securities sold ------- 46,785 7,938
--------------- ---------------- ---------------
Total assets 22,149,164 9,959,420 41,711,285
--------------- ---------------- ---------------
LIABILITIES
Due to advisor 14,288 5,414 33,619
Accrued expenses 20,648 23,352 12,324
--------------- ---------------- ---------------
Total liabilities 34,936 28,766 45,943
--------------- ---------------- ---------------
NET ASSETS
Source of Net Assets:
Net capital paid in on shares of beneficial interest $ 21,928,042 $ 9,356,258 $ 31,992,353
Undistributed net investment income 24,955 13,847 223,022
Accumulated net realized gain (loss) (79,601) (1,015) 2,675,813
Net unrealized appreciation 240,832 561,564 6,774,154
--------------- ---------------- ---------------
Net assets $ 22,114,228 $ 9,930,654 $ 41,665,342
=============== ================ ===============
Shares outstanding 1,832,428 925,708 3,133,882
Net asset value per share $ 12.07 $ 10.73 $ 13.30
=============== ================ ===============
1 Cost Basis:
American Growth Fund: $21,887,001
American Opportunities Fund: $9,344,843
International Fund: $34,299,596
+ Formerly the Thomas White World Fund, see Note 5.
See Notes to Financial Statements.
<PAGE>
Thomas White FUNDS FAMILY
Statements of Operations
Year Ended October 31, 1999
- -----------------------------------------------------------------------------------------------------------------------
American American
Growth Fund Opportunities International
Fund(a) Fund+
--------------- ---------------- ---------------
INVESTMENT INCOME
Income:
Dividends $ 164,878 $ 91,286 $ 930,216 1
Interest 5,945 5,910 49,545
--------------- ---------------- ---------------
Total investment income 170,823 97,196 979,761
--------------- ---------------- ---------------
Expenses:
Investment management fees (note 3) 108,109 61,740 517,223
Custodian fees 8,000 5,498 52,987
Transfer Agent fees 12,003 8,299 19,408
Audit fees and expenses 15,302 15,300 19,797
Trustees' fees and expenses 2,998 2,202 12,397
Printing expenses 2,677 1,455 18,347
Legal fees and expenses 5,561 4,100 35,007
Organization costs ------- ------- 3,887
Registration fees 13,700 4,677 41,109
Depreciation expense ------- ------- 6,265
Other expenses 2,601 1,898 17,309
--------------- ---------------- ---------------
743,736
Total expenses
Reimbursement from Investment Manager (25,083) (21,820) -------
--------------- ---------------- ---------------
Net expenses 145,868 83,349 743,736
--------------- ---------------- ---------------
Net investment income 24,955 13,847 236,025
--------------- ---------------- ---------------
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS
Net realized gain (loss) on investments (79,601) (1,015) 9,410,278
Unrealized appreciation (depreciation) on investments 240,832 561,564 (355,667)
--------------- ---------------- ---------------
Net gain on investments 161,231 560,549 9,054,611
--------------- ---------------- ---------------
Net increase in net assets from operations $ 186,186 $ 574,396 $ 9,290,636
=============== ================ ===============
(a) For the period from March 4, 1999 (commencement of operations) to October
31, 1999.
1 Net of foreign taxes withheld of $98,911.
+ Formerly the Thomas White World Fund, see Note 5.
See Notes to Financial Statements.
<PAGE>
Thomas White funds family
Statements of Changes in Net Assets
- ----------------------------------------------------------------------------------------------------------------------------------
American American
Growth Fund Opportunities Fund International
Fund+
----------------------------------
------------- -------------------
Year Ended March 4, 1999 (c) Year Ended Year Ended
October 31, to October 31, October 31, October 31,
1999 1999 1999 1998
------------- ------------------- -------------- -- ----------------
Change in net assets from operations:
Net investment income $ 24,955 $ 13,847 $ 236,025 $ 604,878
Net realized gain (loss) (79,601) (1,015) 9,410,278 3,965,958
Unrealized appreciation (depreciation) 240,832 561,564 (355,667) (112,585)
------------- ------------------- -------------- -- ----------------
Net increase in net assets from operations 186,186 574,396 9,290,636 4,458,251
Distributions to shareholders:
From net investment income --------- --------- (551,470) (696,401)
From net realized gain --------- --------- (10,655,149) (1,942,252)
Fund share transactions (Note 2) 21,928,042 9,356,258 (13,883,090) 7,649,245
------------- ------------------- -------------- -- ----------------
Total increase (decrease) 22,114,228 9,930,654 (15,799,073) 9,468,843
Net assets:
Beginning of period --------- --------- 57,464,415 47,995,572
------------- ------------------- -------------- -- ----------------
End of period $ 22,114,228 $ 9,930,654 $ 41,665,342 $ 57,464,415
============= =================== ============== == ================
</TABLE>
(c) Commencement of operations.
+ Formerly the Thomas White World Fund, see Note 5.
See Notes to Financial Statements.
<PAGE>
THOMAS WHITE FUNDS FAMILY
Notes to Financial Statements
Year Ended October 31, 1999
- --------------------------------------------------------------------------------
Note 1. Summary of Accounting Policies
Lord Asset Management Trust (the "Trust") was organized as a Delaware business
trust on February 9, 1994, as an open-end diversified management investment
company. The Trust currently has three series of Shares, the Thomas White
American Growth Fund (the "American Growth Fund") 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 Growth Fund primarily invests in equity securities
of large U.S. companies. The American Opportunities Fund will also invest in
U.S. equity securities, with a focus on mid-size and small companies. The
International Fund will primarily invest in equity securities of companies
located in the world's developed countries outside of the U.S. The following is
a summary of significant accounting policies followed in the preparation of its
financial statements.
(a) Valuation of securities. Securities listed or traded on a recognized
national or foreign stock exchange or NASDAQ are valued at the last
reported sales prices on the principal exchange on which the securities
are traded. Over-the-counter securities and listed securities for which
no sale is reported are valued at the mean between the last current bid
and asked prices. Securities for which market quotations are not
readily available are valued at fair value as determined by management
and approved in good faith by the Board of Trustees.
(b) Foreign currency translation. Portfolio securities and other assets and
liabilities denominated in foreign currencies are translated into U.S.
dollar amounts at date of valuation. Purchases and sales of portfolio
securities and income items denominated in foreign currencies are
translated into U.S. dollar amounts on the respective dates of such
transactions. When the Fund purchases or sells a foreign security it
will customarily enter into a foreign exchange contract to minimize
foreign exchange risk from the trade date to the settlement date of
such transaction.
The Fund does not isolate that portion of the results of operations
resulting from changes in foreign exchange rates on investments from
the fluctuations arising from changes in market prices of securities
held. Such fluctuations are included with the net realized and
unrealized gain or loss from investments.
Reported net realized foreign exchange gains or losses arise from sales
of foreign currencies, currency gains or losses realized between the
trade and settlement dates on securities transactions, the differences
between the amounts of dividends, and foreign withholding taxes
recorded on the Fund's books, and the U.S. dollar equivalent of the
amounts actually received or paid. Net unrealized foreign exchange
gains and losses arise from changes in the value of assets and
liabilities other than investments in securities at the end of the
fiscal period, resulting from changes in the exchange rates.
(c) Income taxes. It is 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
Year Ended October 31, 1999
- --------------------------------------------------------------------------------
(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 October 31, 1999, there were an unlimited number of $.01 par value shares
of beneficial interest authorized. Transactions are summarized as follows:
<TABLE>
<S> <C> <C> <C> <C> <C> <C>
American Growth Fund American International
Opportunities Fund Fund (see Note 5)
----------------------- ---------------------- ------------------------------------------------
March 4, 1999
Year (commencement of Year Year
Ended operations) to Ended Ended
October 31, 1999 October 31, 1999 October 31, 1999 October 31, 1998
----------------------- ---------------------- ----------------------- ---------------------
Shares Amount Shares Amount Shares Amount Shares Amount
--------- ---------- -------- --------- --------- ---------- -------- ---------
Shares sold 1,835 $ 21,969 929 $ 9,386 407 $ 5,426 759 $ 10,175
Shares issued on
reinvestment of
dividends & distributions ------- ------- ------- ------- 849 11,158 208 2,591
Shares redeemed (3) (41) (3) (30) (2,353) (30,467) (364) (5,117)
--------- ---------- -------- --------- --------- ---------- -------- ---------
Net increase (decrease) 1,832 $ 21,928 926 $ 9,356 (1,097) $ (13,883) 603 $ 7,649
--------- ---------- -------- --------- --------- ---------- -------- ---------
Note 3. Investment Management Fees and Other Transactions with Affiliates
The Funds pays monthly an investment management fee to Thomas White
International, Ltd. (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 Growth 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 year ended October 31, 1999, the cost of purchases and the proceeds
from sales of investment securities, other than short-term obligations, were as
follows:
Fund Purchases Sales
- ---------------------------------------- -------------------- ------------------
American Growth Fund 22,246,231 464,946
American Opportunities Fund 9,612,571 297,298
International Fund (see Note 5) 34,170,561 53,273,910
The cost of securities for federal income tax purposes was the same for each
Fund as that shown in the investment portfolio.
At October 31, 1999, the aggregate gross unrealized appreciation and
depreciation of portfolio securities, based upon cost for federal income tax
purposes, were as follows:
Unrealized Unrealized Net Unrealized
Fund Appreciation Depreciation Appreciation
- ------------------------------------- ----------------- ------------------- -------------------
American Growth Fund 1,901,265 (1,660,433) 240,832
American Opportunities Fund 1,349,780 (788,216) 561,564
International Fund (see Note 5) 8,629,923 (1,855,769) 6,774,154
</TABLE>
At October 31, 1999 the American Growth Fund and American Opportunities Fund
have tax basis capital losses of approximately $79,000 and $1,000, respectively,
which may be carried over to offset future capital gains. Such losses expire on
October 31, 2007.
<PAGE>
THOMAS WHITE FUNDS FAMILY
Notes to Financial Statements
Year Ended October 31, 1999
- --------------------------------------------------------------------------------
Note 5. Name Change
On May 1, 1999, the Thomas White World Fund changed its name to the Thomas White
International Fund. To coincide with the name change the investment strategy of
the Fund was shifted from a global focus, which normally had over 30% U.S.
equity securities, to primarily non-U.S. equity securities. Under normal market
conditions the International Fund will now have less than 10% of its portfolio
invested in U.S. issuers.
Note 6. Financial Highlights
<TABLE>
<S> <C> <C> <C>
American Growth American International
Fund Opportunities Fund Fund+
---------------------- --- ------------------------ ---- -------------------
March 4, 1999
Year (commencement of Year
Ended operations) to Ended
October 31, 1999 October 31, 1999 October 31, 1999
- ---------------------------------- ---- ---------------------- --- ------------------------ ---- -------------------
Per share operating performance
(For a share outstanding throughout the period)
Net asset value, beginning of $ 10.00 $ 10.00 $ 13.58
period
---- ---------------------- --- ------------------------ ---- -------------------
Income from investment
operations:
Net investment income 0.01 0.02 0.07
Net realized and unrealized 2.06 0.71 2.32
gains
---- ---------------------- --- ------------------------ ---- -------------------
2.07 0.73 2.39
Distributions:
From net investment income ------- ------- (0.13)
From net realized gains ------- ------- (2.54)
---- ---------------------- --- ------------------------ ---- -------------------
------- ------- (2.67)
Change in net asset value for 2.07 0.73 (0.28)
the period
==== ====================== === ======================== ==== ===================
Net asset value, end of period $ 12.07 $ 10.73 $ 13.30
==== ====================== === ======================== ==== ===================
Total Return 20.70% 7.30% ** 18.78%
Ratios/supplemental data
Net assets, end of period (000) $ 22,114 $ 9,931 $ 41,665
Ratio to average net assets:
Expenses (net of 1.35% *+ 1.35% *+ 1.44%
reimbursement)
Net investment income 0.23% * 0.22% * 0.46%
Portfolio turnover rate 4.58% 3.53% ** 67.48%
* Annualized ** Not annualized.
+ In the absence of the expense reimbursement, expenses for the American
Growth and American Opportunities Funds would have been 1.58% and 1.70%,
respectively, of average net assets.
+ Formerly the Thomas White World Fund, see Note 5.
<PAGE>
THOMAS WHITE FUNDS FAMILY
Notes to Financial Statements
Year Ended October 31, 1999
- ---------------------------------------------------------------------------------------------------------------------------------
International Fund+
------------------------------------------------------------------
Year Ended Year Ended Year Ended Year Ended
October October 31, October 31, October 31,
31, 1998 1997 1996 1995
-- ------------ -- -------------- -- ------------- -- ---------------
Per share operating performance
(For a share outstanding throughout the period)
Net asset value, beginning of $ 13.23 $ 12.33 $ 11.31 $ 10.50
period
-- ------------ -- -------------- -- ------------- -- ---------------
Income from investment operations:
Net investment income 0.15 0.20 0.19 0.19
Net realized and unrealized 0.93 1.65 1.51 0.71
gain
-- ------------ -- -------------- -- ------------- -- ---------------
1.08 1.85 1.70 0.90
Distributions:
From net investment income (0.19) (0.19) (0.20) (0.09)
From net realized gains (0.54) (0.76) (0.48) -
-- ------------ -- -------------- -- ------------- -- ---------------
(0.73) (0.95) (0.68) (0.09)
Change in net asset value for the 0.35 0.90 1.02 0.81
period
== ============ == ============== == ============= == ===============
Net asset value, end of period $ 13.58 $ 13.23 $ 12.33 $ 11.31
== ============ == ============== == ============= == ===============
Total Return 8.64% 15.80% 15.63% 8.65%
Ratios/supplemental data
Net assets, end of period (000) $ 57,464 $ 47,996 $ 39,157 $ 32,979
Ratio to average net assets:
Expenses (net of reimbursement) 1.42% 1.47% 1.50% 1.49%
Net investment income 1.13% 1.60% 1.63% 2.08%
Portfolio turnover rate 51.41% 48.19% 51.22% 64.54%
+ Formerly the Thomas White World Fund, see Note 5.
</TABLE>
<PAGE>
Change of Independent Accountant
On August 27, 1999, McGladrey & Pullen, LLP ("McGladrey") resigned as
independent auditors of the Trust pursuant to an agreement by
PricewaterhouseCoopers LLP ("PwC") to acquire McGladrey's investment company
practice. The McGladrey partners and professionals serving the Trust at the time
of the acquisition joined PwC.
The reports of McGladrey on the financial statements of the Trust during the
past two fiscal years contained no adverse opinion or disclaimer of opinion, and
were not qualified or modified as to uncertainty, audit scope or accounting
principles.
In connection with its audits for the two most recent fiscal years and through
August 27, 1999, there were no disagreements with McGladrey on any matter of
accounting principle or practices, financial statement disclosure, or auditing
scope or procedure, which disagreements, if not resolved to the satisfaction of
McGladrey would have caused it to make reference to the subject matter of
disagreement in connection with its report.
On September 14, 1999, the Trust, with the approval of its Board of Trustees and
its Audit Committee, engaged PwC as its independent auditors.
<PAGE>
Report of Independent Accountants
The Board of Trustees
Thomas White Funds Family
In our opinion, the accompanying statements of assets and liabilities, including
the investment portfolios, and the related statements of operations and of
changes in net assets and the financial highlights present fairly, in all
material respects, the financial position of Thomas White American Growth Fund,
Thomas White American Opportunities Fund and Thomas White International Fund
series of Lord Asset Management Trust (the "Funds") at October 31, 1999, and the
results of their operations, the changes in their net assets and their financial
highlights for the year then ended, in conformity with generally accepted
accounting principles. These financial statements and financial highlights
(hereafter referred to as "financial statements") are the responsibility of the
Funds' management; our responsibility is to express an opinion on these
financial statements based on our audit. We conducted our audit of these
financial statements in accordance with generally accepted auditing standards,
which require that we plan and perform the audit to obtain reasonable assurance
about whether the financial statements are free of material misstatement. An
audit includes examining, on a test basis, evidence supporting the amounts and
disclosures in the financial statements, assessing the accounting principles
used and significant estimates made by management, and evaluating the overall
financial statement presentation. We believe that our audit, which included
confirmation of securities at October 31, 1999 by correspondence with the
custodian, provides a reasonable basis for the opinion expressed above. The
financial statements for the year ended October 31, 1998, including the
financial highlights for the periods indicated, were audited by other
independent accountants whose report dated November 18, 1998 expressed an
unqualified opinion on those financial statements.
/s/ PricewaterhouseCoopers LLP
PricewaterhouseCoopers LLP
New York, New York
November 18, 1999
