-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, VW8BirzY3loGR85Wdoli7u86icrKAofzrwG2UYsBTGt1MZyI0FUi538ZTtt5F+29 P8JMZptPgjVrV/n0LL8zUw== 0000950131-96-002632.txt : 19960606 0000950131-96-002632.hdr.sgml : 19960606 ACCESSION NUMBER: 0000950131-96-002632 CONFORMED SUBMISSION TYPE: N-30B-2 PUBLIC DOCUMENT COUNT: 1 CONFORMED PERIOD OF REPORT: 19960331 FILED AS OF DATE: 19960605 SROS: NONE FILER: COMPANY DATA: COMPANY CONFORMED NAME: ACORN INVESTMENT TRUST CENTRAL INDEX KEY: 0000002110 STANDARD INDUSTRIAL CLASSIFICATION: [] IRS NUMBER: 362692100 STATE OF INCORPORATION: MA FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: N-30B-2 SEC ACT: 1940 Act SEC FILE NUMBER: 811-01829 FILM NUMBER: 96576794 BUSINESS ADDRESS: STREET 1: 227 W MONROE STE 3000 CITY: CHICAGO STATE: IL ZIP: 60606 BUSINESS PHONE: 3126349200 MAIL ADDRESS: STREET 1: 227 W MONROE ST STE 3000 STREET 2: ATTN: BRUCE LAUER CITY: CHICAGO STATE: IL ZIP: 60606 FORMER COMPANY: FORMER CONFORMED NAME: ACORN FUND INC DATE OF NAME CHANGE: 19920703 N-30B-2 1 FIRST QUARTERLY REPORT Acorn Acorn Fund / Acorn International First Quarter Report -------------------------------------- March 31, 1996 Managed by Wanger Asset Management, L.P. Acorn Fund and Acorn International First Quarter Report 1996 .Squirrel Chatter: The Queen of Underland I was reading a bedtime story to my two daughters, Jenny and Elise. They love the Chronicles of Narnia by C.S. Lewis. In Book Six, The Silver Chair, we read one chapter that struck me as a wonderful metaphor for the dangerous seductions of a long bull market. The heroes of the story are two English children, Jill and Scrubb, and a frog-like man, Puddleglum. They are in a gloomy cave world called Underland, in the Evil Witch's castle. They have just rescued Rilian, a brave (but none-too-bright) prince from the Witch's spell. The Witch had been on a roadtrip, but shows up again unexpectedly. In this chapter, the Witch uses her magic to recapture the party. "How now my lord Prince," the Witch-Queen said, "Why stand you here unbound? Who are these aliens? And is it they who have destroyed the chair which was your only safety?" Prince Rilian shivered as she spoke to him. And no wonder: it is not easy to throw off in half an hour an enchantment which has made one a slave for ten years. Then, speaking with a great effort, he said: "I am now in my right mind. I am the King's son of Narnia." Now the Witch said nothing at all, but moved gently across the room, always keeping her face and eyes very steadily toward the Prince. When she had come to a little ark set in the wall not far from the fireplace, she opened it, and took out first a handful of a green powder. This she threw on the fire. It did not blaze much, but a very sweet and drowsy smell came from it. And all throughout the conversation which followed, that smell grew stronger, and filled the room, and made it harder to think. Secondly, she took out a musical instrument rather like a mandolin. She began to play it with her fingers--a steady, monotonous thrumming that you didn't notice after a few minutes. But the less you noticed it, the more it got into your brain and your blood. This also made it hard to think. After she had thrummed for a time (and the sweet smell was now strong) she began speaking in a sweet, quiet voice. "Narnia?" the evil Witch said. "Narnia? There is no land called Narnia." "Oh, don't be so silly," said Scrubb, who was fighting hard against the enchantment of the sweet smell and the thrumming. "As if you didn't know! It's up above, up where you can see the sky and the sun and the stars. Why, you've been there yourself. We met you there." The Witch's soft seductive voice caused the enchantment to gain force... Soon enough, Jill couldn't remember the names of the things in her world. And this time it didn't come into her head that she was being enchanted, for now the magic was in its full strength; and of course, the more enchanted you get, the more you feel that you are not enchanted at all. She found herself saying (and at the moment it was a relief to say): "No. I suppose that other world must be all a dream." "Yes. It is all a dream," said the Witch, always thrumming. "Yes, all a dream," said Jill. "There never was such a world," said the Witch. "No," said Jill and Scrubb, "never was such a world." "There never was any world but mine," said the Witch. "There never was any world but yours," said they. Our heroes, fighting desperately against the enchantment, remember that there had been a sun in their world and no sun in the Witch's underground kingdom. Then came the Witch's voice, cooing softly like the voice of a wood-pigeon from the high elms in an old garden at three o'clock in the middle of a sleepy, summer afternoon; and it said: "What is the sun that you all speak of? Do you mean anything by the word?" "Yes, we jolly well do," said Scrubb. "Can you tell me what it's like?" asked the Witch (thrum, thrum, thrum, went the strings). "Your sun is a dream..." Slowly and gravely the Witch repeated, "There is no sun." And they all said nothing. She repeated, in a softer and deeper voice. "There is no sun." After a pause, and after a struggle in their minds, all four of them said together, "You are right. There is no sun." It was such a relief to give in and say it. The Witch-Queen's magic caused the heroes of the story to agree that the underground world is the only reality and the real world is a fantasy. A prolonged bull market has the same effect on us as investors. We do not need to have constant guitar music or magical powders up our 1 ...the more enchanted you get, the more you feel that you are not enchanted at all. nose to be under the spell of the Witch, who is cooing in our ears, "The market will only go up. There is no risk. IPOs are marvelous. Your stockbroker is your best friend. You will soon make a limitless fortune without effort." In the Narnia story, our heroes managed to fight off the enchantment at the last moment. The Witch changed instantly into her true form, a great loathsome serpent, to kill by force those whom she had failed to enslave. The prince may have been too dim to stop the Witch when she started casting her spell, but in the critical moment, he killed her with his sword and lived happily ever after. A bull market has the form of a lovely, soft-voiced woman, but it too can become a loathsome beast in an instant. What should you do to foil the Market- Witch in the real world? We know trying to be a market-timer doesn't work. Thinking like a long-term investor is your best defense. If you stare the monster down with focus, patience and a calm eye, you may be rewarded with investment success in the end. .The WAM Team In our annual report, we indicated that we have been increasing our staff and improving our systems to manage your investments effectively. We now have fourteen investment professionals working for you. David Snoddy and Peter Zaldivar are the newest members of our international investment team. David comes to WAM from Jardine Fleming Securities in Tokyo, where he was a senior analyst. Peter joins us from Lord Asset Management in Chicago, where he was a vice president and portfolio manager. .Making Your Life Easier This quarter marks the debut of our redesigned shareholder fund reports. Our efforts are the direct result of your suggestions for improvement. Combining our reports has reduced our production and mailing costs. These savings are passed on to you. We have also updated our statements, making them easier to understand. Based on your recommendations, we will no longer automatically mail quarterly account statements. You will continue to receive a confirmation statement whenever there is activity in your account, such as a purchase, redemption, automatic investment, dividend distribution or registration change. You will also continue to receive a year-end statement, regardless of account activity, as well as quarterly fund reports. And of course, free statements showing your recent account activity are available anytime upon request. In June, you will receive a new shareholder investment booklet containing customized investment slips. This booklet will serve as a convenient way for you to buy more shares. We recently mailed the new 1996 Acorn Funds prospectus to shareholders. Please take a moment to read it. We have expanded the types of transactions you may initiate over a recorded telephone line. If you ever need help or have questions about a transaction, a friendly customer service representative can help. Simply call our toll-free number, 1-800-9-ACORN-9 (1-800-922-6769) during regular business hours for assistance. Happy Investing! /s/ Ralph Wanger Ralph Wanger President 2 .More Squirrel Chatter [PHOTO OF MARCEL HOUTZAGER] Among Wanger Asset Management's principals, Marcel Houtzager wins the prize for most varied personal history. He was born in Schevening, the Netherlands, but his father was a Shell geophysicist, so Marcel grew up in Nigeria, Turkey, South Africa, and Brazil. He came to the U.S. for college where he met and married Liora Szold, an Israeli. Marcel became a CPA in '88, a U.S. citizen in '89 (Liora in '87), and joined WAM in '92, four months before the launch of Acorn International. Q. Wanger Asset Management is known for using investment themes to guide the stock picking process. Do themes work on the international side as well? A. Themes often work wonderfully in international markets. Important trends pay no attention to borders. Sometimes we get the additional advantage of time travel. The U.S. is a mature consumer economy, and many foreign economies are getting more American each year, repeating our experiences. Sometimes it's a little bit like watching a movie for the second time--you know ahead of time when the good part is about to start. Q. Can you give a specific example? A. As people get richer, they spend a higher percentage of their income on leisure, entertainment, and tourism. Acorn made a lot of money on Carnival, a cruise line mainly serving American tourists in the Caribbean. Similar fast growth is now benefiting Costa Crociere in the Mediterranean and Genting International in Southeast Asia. Q. How about a theme you are currently putting new money in? A. One of my favorite themes takes advantage of the sorry state of European national pension systems (excluding the U.K. and the Netherlands). Most European countries do not have funded pension plans at either the company or state level, let alone IRA or 401(k) plans. Instead they rely almost entirely on pay-as-you- go national pension schemes similar to our social security system. This works as long as the promised benefits are modest, and the pool of people who "pay" grows at about the same rate as the people who "go." Unfortunately, the promised benefits are in fact fairly extravagant, and the "go" pool is growing while the "pay" pool is shrinking. Both politicians and would-be pensioners are worried they will wake up one day to a giant sucking sound coming from the benefits department of their national retirement administration. Q. So where's the theme? A. Europeans are buying life insurance and mutual funds at a rapid clip because they must save now if they want to maintain an acceptable standard of living in their golden years. Politicians are encouraging them to do so because the government needs buyers for the companies that are to be privatized over the coming years. This is a virtuous circle which has only just begun. We have so far invested over $70 million in European companies that benefit from the high anticipated growth in retirement investment products. The U.S. experience with mutual funds highlights the tremendous growth potential of the industry even without the added incentives that are present in Europe. Q. Just how much growth are you expecting? A. Funded retirement plans and a developed stock market go hand in hand. In the U.S. and the U.K., where funded pension plans are fairly well developed, the total value of all publicly-owned stocks about equals GDP. In Italy and Germany, stock markets are less than a quarter of the size of their respective economies. Although retirement savings is not the only determinant of stock market size, there is no conceptual reason why the Italian and German stock markets and retirement savings industries should not increase fourfold over time. Q. What happens if European pension money flows into local stock markets? A. We don't have a crystal ball, but we believe more investors and greater liquidity are always better for markets. We want to invest beforehand; as we say in Holland, "Ochtendstond heeft goud in de mond."/1/ - ------------------------------------------------------------------------------- /1/The equivalent English proverb is, "The early bird gets the worm." 3 Acorn Fund .In a Nutshell Acorn Fund was up 7.7% for the first quarter, outperforming nearly all of the benchmark indexes, as shown on page 5. We trailed our benchmarks in 1995, but remained true to our investment philosophy. It paid off in the first quarter of 1996. Several stocks were instrumental in helping us post these gains. Zoltek, a St. Louis-based carbon fiber company, was our biggest percentage gain winner, up 183% since we first purchased it in November 1995. Borders Group, the largest mall-based bookseller in the U.S., is posting strong profits in a retail industry faced with red-ink results. Our two credit card companies, ADVANTA and First USA (both top 10 holdings) rebounded 36% and 28% in the first quarter. Fears of an epidemic of credit card defaults proved groundless. Lincare Holdings, another top 10 position, left other health care stocks looking comparatively under-the-weather during the first quarter. The stock rose a robust 30% based on a strong earnings report and the diminished prospect for Medicare cuts in 1996. Our energy stocks did well as natural gas consumption was high and oil prices jumped unexpectedly. The Fund's foreign sub-portfolio was up 8.9% during the first quarter. Foreign markets offer good potential returns at this time. We reopened Acorn Fund in November 1995. Cash came in at a moderate rate in the first quarter, about $5 million per month. We are finding plenty of good companies to buy for you. Fund Assets as of 3/31/96: $2,597.7 million .Acorn Fund Top 10 Holdings Thermo Electron 1.8% Energy Systems & Processing Equipment Newell 1.7% Consumer Goods ADVANTA, Class A 1.7% Credit Cards Harley Davidson 1.7% Recreational Vehicles Manufacturer Solectron 1.5% Electronics Contract Manufacturer TCI Liberty Media Group 1.5% CATV Programming Carnival 1.5% Cruise Ship Line First USA 1.3% Credit Cards Tele Communications, Class A 1.3% Cable TV Lincare Holdings 1.2% Home Health Care Services Fund facts Where to find us in the newspaper: 4 .Performance at a Glance The Value of a $10,000 Investment in Acorn Fund .June 10, 1970 through March 31, 1996 [GRAPH APPEARS HERE] ACORN FUND MOUNTAIN CHART PLOT POINTS DATE ACORN FUND ($) S & P ($) - ---- -------------- --------- 1970 10,000 10,000 1971 17,828 13,837 1972 19,368 16,192 1973 14,765 14,466 1974 10,691 10,630 1975 13,945 14,595 1976 23,045 18,092 1977 27,168 16,789 1978 31,777 17,877 1979 47,790 21,205 1980 62,594 28,098 1981 58,005 26,701 1982 68,208 32,464 1983 85,389 38,577 1984 89,045 42,028 1985 117,142 55,470 1986 136,843 65,987 1987 142,923 69,441 1988 178,370 80,960 1989 222,681 106,584 1990 183,674 103,479 1991 270,641 135,053 1992 336,210 144,111 1993 444,889 158,635 1994 411,750 160,733 1995 497,407 221,131 3/31/96 535,444 233,000 This graph compares the results of $10,000 invested in Acorn Fund on June 10, 1970 (the date Fund shares were first offered to the public), with all dividends and capital gains reinvested, with the Standard & Poor's 500 Stock Index with dividends reinvested (source: Salomon Brothers Inc Stock Facts and Shaw Data Services, Inc.). 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. Acorn Fund Portfolio Diversification .as of March 31, 1996 [PIE CHART FOR TABLE BELOW APPEARS HERE]
Consumer Goods and Services 11.7% Information Group 19.1% Finance Group 15.7% Industrial Goods and Services 10.6% Health Care 11.4% Energy and Minerals 6.7% Real Estate 1.8% Foreign 20.8% Cash less liabilities 2.2%
Relative Performance - ------------------------------------------------------------------- 1st quarter Last 12 mos. Acorn Fund 7.7% 26.5% Dow-Jones 9.8% 37.7% Standard & Poor's 500 5.4% 32.1% Standard & Poor's MidCap 6.2% 28.5% Russell 2000 5.1% 29.1%
The Dow Jones Industrial Average includes 30 large companies. The S&P 500 is a broad market-weighted average, still blue-chip dominated. The S&P MidCap 400 is a market value-weighted index of 400 stocks that are in the next tier down from the S&P 500. The Russell 2000 is formed by taking 3,000 companies and then eliminating the largest 1,000 leaving a good small company index. All indices are unmanaged and returns include reinvested dividends. The Fund's top 10 holdings and portfolio diversification vary with changes in portfolio investments. Net Asset Value Per Share 3/31/96: $14.64 - ----------------------------------------- 5 Acorn International .In a Nutshell Acorn International finished the first quarter up a healthy 9%. Stock selection made the difference as we were ahead of both EAFE and the Lipper International Small Company Funds Average for the quarter and trailing 12 months. After a difficult 1994 and 1995, international small-caps appear to be back in favor. Of our larger positions, Fresenius and Getronics rose a stunning 67% and 54%, respectively. Other international holdings, such as Axime Ex Segin in France, Raision Tehtaat in Finland, Sece Cortaillod in Switzerland, Kimberly Clark in Mexico, Telemig in Brazil, and Serm Suk in Thailand, rose between 40% and 125%. Overall, approximately two-thirds of the fund's gain came from developed markets and one-third from emerging markets, in line with their relative weightings within the portfolio. Leah Zell, your Fund's co-portfolio manager, was featured in the May issue of Money Magazine. The article mentions an excellent study by Rex Sinquefield, chief investment officer at Dimensional Fund Advisors in Santa Monica, CA.1 The paper showed that from 1975 to 1994 a U.S. investor got some diversification by buying big companies overseas, but even better results by using foreign small- caps. Look what happened when a U.S. investor balanced between stocks and bonds moved a quarter of his U.S. stock portfolio into foreign small-caps:
Domestic Diversified Portfolio Portfolio Net Result - ----------------------------------------------------------------------- U.S. S&P 500 Index 60% 45% Foreign Small-Cap Index/2/ 0% 15% U.S. Treasury Bonds 40% 40% Annualized Return 12.8% 14.5% +1.7% Standard Deviation 10.1% 9.4% -0.7%
Hot stuff! Rex's study proved that an international small-cap component in your overall asset mix increased your return and lowered your risk at the same time. Of course, past results can't predict the future, but we think this study is impressive. Fund Assets as of 3/31/96: $1,453.6 million .Acorn International Top 10 Holdings WM Data Sweden 2.4% Computer Services/Consulting Korea Mobile Telecom Korea 1.6% Mobile Communications Fresenius Germany 1.5% Dialysis Equipment & Solutions Getronics Netherlands 1.3% Computer Consulting T T Tieto, Class B Finland 1.2% Computer Services/Consulting Phoenix Mecano Switzerland 1.0% Electrical Components Manufacturer Rhoen Klinikum Preferred Germany 1.0% Hospital Management Sysdeco Group Norway 1.0% Software Tool Sets & Systems International CableTel United Kingdom 1.0% Cable TV & Telephone System Societe Generale de Surveillance Switzerland 0.9% Inspection/Testing of Trade Goods Fund facts Where to find us on NASDAQ: Acorn Fund: ACRNX Acorn International: ACINX International investing allows you to achieve greater diversification and to take advantage of changes in foreign economies and market conditions, providing opportunities different from those available in the U.S., and risks which in some ways may be greater than in U.S. investments, including: exchange rate fluctuations; different government regulation and accounting, auditing, and financial reporting standards; different settlement periods and trading practices and often higher transaction costs; and frequently less liquidity and greater price volatility. Investing in countries outside the U.S. also involves political risk (like expropriation or nationalization). Economies in individual markets may differ favorably or unfavorably from the U.S. economy. Many of the risks of international investing are even greater in emerging markets, which are often substantially smaller, less developed, less liquid, and more volatile than the securities markets of the United States and other more developed countries. /1/Sinquefield, Rex A., "Where Are the Gains from International Diversification?," Financial Analysts Journal, January-February, 1996. /2/The foreign small-cap index was constructed by Sinquefield from various public market indices and other sources. 6 .Performance at a Glance The Value of a $10,000 Investment in Acorn International .September 23, 1992 through March 31, 1996 [GRAPH APPEARS HERE] DATE ACORN INT'L ($) EAFE ($) - ---- --------------- -------- 09/23/92 10,000 10,000 09/30/92 10,010 10,000 12/31/92 10,690 9,614 03/31/93 12,000 10,767 06/30/93 12,920 11,849 09/30/93 13,910 12,635 12/31/93 15,940 12,745 03/31/94 15,850 13,190 06/30/94 15,550 13,864 09/30/94 16,491 13,877 12/31/94 15,334 13,736 03/31/95 14,811 13,992 06/30/95 15,727 14,093 09/30/95 16,824 14,681 12/31/95 16,703 15,275 03/31/96 18,203 15,717 This graph compares the results of $10,000 invested in Acorn International on September 23, 1992 (the date the Fund began operations) with Morgan Stanley's Europe, Australia and Far East Index (EAFE). 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. Acorn International Portfolio Diversification .as of March 31, 1996 [PIE CHART FOR TABLE BELOW APPEARS HERE]
Consumer Goods and Services 28.2% Information Group 23.7% Finance Group 20.1% Industrial Goods and Services 8.7% Health Care 7.7% Energy and Minerals 4.8% Real Estate 1.4% Transportation 0.8% Cash 4.6%
Relative Performance - ---------------------------------------------------------------------------- 1st quarter Last 12 mos. Acorn International 9.0% 22.9% EAFE 2.9% 12.3% Lipper International Small Company Funds Average 7.2% 18.4%
EAFE is Morgan Stanley's Europe, Australia and Far East Index, an unmanaged index of companies throughout the world in proportion to world stock market capitalization, excluding the U.S. and Canada. The Lipper International Small Company Funds Average is a group comprised of twelve small company international funds, including Acorn International. The Fund's top 10 holdings and portfolio diversification vary with changes in portfolio investments. Net Asset Value Per Share 3/31/96: $18.08 - ----------------------------------------- 7 Acorn Fund .Major Portfolio Changes in the First Quarter
Number of Shares -------------------- 12/31/95 3/31/96 Additions - ------------------------------------------------------------------------ Information Group Altron 150,000 221,000 American Management Systems - 125,000 BDM International - 100,000 CACI International 220,000 436,000 Continuum - 94,000 Korea Mobile Telecom GDS - 40,000 Mobile Telecommunications Technologies 700,000 800,000 PILTEL 2,000,000 6,000,000 Pioneer-Standard Electronics 900,000 1,000,000 Richey Electronics 200,000 300,000 Sanmina - 70,000 Sierra On-Line 150,000 300,000 Sligos 27,000 63,000 Sysdeco Group - 100,000 United Video Satellite - 465,000 (includes effect of 2 for 1 stock split) Thermoquest - 20,000 - ------------------------------------------------------------------------ Health Care Group AMSCO International 1,150,000 1,354,000 Corvas International - 800,000 Kinetic Concepts 607,000 930,000 Lincare Holdings 625,000 967,000 MDL Information Systems - 185,000 Medeva 810,000 2,230,000 RP Scherer 95,000 260,000 Steris 205,000 340,000 Watson Pharmaceuticals 225,000 280,000 - ------------------------------------------------------------------------ Consumer Goods and Services Autoliv - 120,000 Escada 13,000 20,000 Esselte - 10,000 Genting International 4,500,000 5,000,000 Hollywood Park Cv. Pfd. 201,000 472,000 N. Brown Group 800,000 1,200,000 Nine West - 50,000 Noritsu Koki - 150,000 (includes effect of 50% stock bonus) Norwood Promotional 150,000 232,000 Panamerican Beverages 120,000 170,000 Royal - 132,000 (includes effect of 10% stock bonus) Wolverine World Wide 190,000 375,000 - ------------------------------------------------------------------------ Finance Group Arab Malaysian Finance - 220,000 Banca Fideuram 2,500,000 4,700,000 Credicorp - 250,000 Phoenix Duff & Phelps 710,000 1,546,000 Formosa Fund - 120,000 IS Himalaya Fund - 300,000 Itau Banco PN 12,000,000 15,000,000 JCG Holdings 2,800,000 7,000,000 Kookmin Bank - 257,429 Liechtenstein Global Trust 8,000 14,000 First USA Paymentech - 15,000 - ------------------------------------------------------------------------ Industrial Goods and Services Baldor Electric 525,000 800,000 Bearings - 180,000 Ecco SA - 14,000 Hub Group - 430,000 Loral - 215,000 Myers Industries 100,000 180,000 Pec Israel Economic Corporation 100,000 200,000 Schnitzer Steel 35,000 175,000 Shaw Industries - 200,000 Societe Generale de Surveillance 3,500 6,000 US Can - 162,000 Valmont Industries - 135,000 Superior Services - 70,000 Thermo Sentron - 34,000 - ------------------------------------------------------------------------ Energy and Minerals Atmos Energy - 50,000 CalEnergy - 475,000 Coeur D'Alene Mines - 250,000 Forest Oil - 400,000 J Ray McDermott - 160,000 Landmark Graphics 235,000 335,000 Louis Dreyfus Natural Gas 240,000 380,000 Petroleum Securities - 740,000 Ranger Oil - 400,000 United Meridian 350,000 440,000 - ------------------------------------------------------------------------ Real Estate Group Vallehermoso 60,000 300,000
8
Number of Shares 12/31/95 3/31/96 Sales - -------------------------------------------------------------- Information Group ADVO 520,000 - Century Communications, Cl. A 635,000 500,000 Clipsal Industries 500,000 - Harman International 500,000 - International Game Technology 2,245,000 2,040,000 New Straits Times Press 745,000 - Solectron 1,200,000 900,000 SAP 50,000 - Tele-Communications, Series A TCI Group 2,000,000 1,800,000 Television Broadcasts 1,150,000 - - -------------------------------------------------------------- Health Care Group Alteon 260,000 - Anesta 175,000 64,000 Apria Healthcare Group 456,000 366,000 Biogen 85,000 70,000 Cygnus Therapeutic Systems 258,000 170,000 HBO & Company 285,000 249,000 Ligand Pharmaceuticals 159,000 - North American Biologicals 742,000 562,000 Protein Design Labs 195,000 155,000 Sepracor 380,000 280,000 Serologicals 69,000 - TheraTech 223,000 163,000 ThermoTrex 200,000 150,000 Pet Practice 90,000 - - -------------------------------------------------------------- Consumer Goods and Services Autobacs Seven 50,000 - Burswood Property Trust 3,000,000 1,800,000 Genting 1,040,000 - Hennes & Mauritz, Cl. B 150,000 110,000 Home Shopping Network 800,000 - International Speedway 14,000 - Liz Claiborne 105,000 - Mikasa 425,000 275,000 Multibras PN 1,900,000 - O.Y.L. Industries 660,000 460,000 Sky City 400,000 1,700,000 (includes effect of 5 for 1 split) Sony Music Entertainment 65,000 33,000 St. John Knits 182,000 147,000 Stanhome 180,000 - Zale 85,000 - Casa Anglo Brasileira Pfd. 12,000,000 - OK Holding 27,000 - - -------------------------------------------------------------- Finance Group Mercury Finance 1,524,000 1,393,000 Nationsbank 211,000 - (formerly known as Bank South Corp.) New World Infrastructure 2,200,000 - - -------------------------------------------------------------- Industrial Goods and Services Johnson Electric Holdings 1,100,000 - Nordson 200,000 150,000 SensoNor 800,000 600,000 Thermo Fibertek 735,000 600,000 UCAR International 40,000 - Unifi 900,000 600,000 Zoltek Companies 180,000 110,000 Modernform 375,000 - - -------------------------------------------------------------- Energy and Minerals Coflexip 96,000 - Enserv 250,000 - Petroleum Helicopters 170,000 - Seagull Energy 150,000 - Thermo Ecotek 580,000 500,000 Weatherford International 200,000 - - -------------------------------------------------------------- Real Estate Group The Rouse Company 1,400,000 829,000 Weingarten Realty Investors 315,000 165,000
9 Acorn Fund .Statement of Investments (unaudited) March 31, 1996
Number of Shares Value (000) - ---------------------------------------------------------------------------- Common Stocks and Other Equity-Like Securities: 97.8% - ---------------------------------------------------------------------------- Information Group: 19.1% .Broadcasting and CATV: 5.8% 1,500,000 Tele-Communications, Liberty Media Group $ 39,563 1,800,000 Tele-Communications, Series A TCI Group 33,413 50,000 Tele-Communications, Cum. Pfd. 3,331 700,000 International Family Entertainment 11,813 465,000 United Video Satellite 9,765 300,000 Silver King Communications 9,300 300,000 TCA Cable TV 8,738 300,000 BET Holdings 8,363 300,000 Argyle Television 6,525 440,000 Jones Intercable, Cl. A 6,380 22,500 Jones Intercable 352 500,000 Century Communications, Cl. A 4,844 80,000 Cablevision Systems 4,600 300,000 Granite Broadcasting 3,600 270,000 DMX 523 - ---------------------------------------------------------------------------- 151,110 .Mobile Communications: 3.5% 500,000 Telephone and Data Systems 23,125 800,000 Mobile Telecommunication Technologies 12,500 450,000 Cellular Communications of Puerto Rico 12,150 500,000 Vanguard Cellular Systems 10,000 180,000 Cellular Communications Cv. Pfd. 9,203 468,750 PriCellular 6,270 352,000 COMARCO 5,236 300,000 Centennial Cellular 4,575 200,000 Palmer Wireless 3,825 375,000 Shared Technologies 2,016 400,000 Pittencrieff Communications 2,000 - ---------------------------------------------------------------------------- 90,900 .Computer Software and Services: 1.5% 775,000 Systems & Computer Technology 11,431 266,000 Business Records 9,842 436,000 CACI International 4,523 94,000 Continuum 3,913 100,000 BDM International 3,825 125,000 American Management Systems 3,188 Principal Amount or Number of Shares Value (000) - ---------------------------------------------------------------------------- 120,000 Computer Language Research $ 1,950 100,000 Tripos 788 170,000 Kurzweil Applied Intelligence 414 - ---------------------------------------------------------------------------- 39,874 .Gaming Equipment: 1.1% 2,040,000 International Game Technology 27,795 .Computer Game Software: 0.5% 300,000 Sierra On-Line 10,088 350,000 Spectrum HoloByte 2,844 - ---------------------------------------------------------------------------- 12,932 .Business Information: 0.3% 400,000 American Business Information 6,400 600,000 GIGA Cv. Pfd. 2,100 - ---------------------------------------------------------------------------- 8,500 .Computer Systems: 2.1% 900,000 Solectron 39,600 221,000 Altron 6,437 700,000 Triad Systems 4,113 275,000 ACT Manufacturing 3,334 70,000 Sanmina 2,083 - ---------------------------------------------------------------------------- 55,567 .Instrumentation: 1.2% 635,000 Thermo Instrument Systems 19,209 $5,000 Thermo Optek, 5% Note Due 10/15/00 5,650 228,000 IFR Systems 3,107 $1,500 Thermoquest, 5% Note Due 8/15/00 1,695 20,000 Thermoquest 340 85,000 Datum 776 - ---------------------------------------------------------------------------- 30,777 .Distribution: 1.3% 1,000,000 Pioneer-Standard Electronics 15,375 304,000 Kent Electronics 10,754 520,000 Bell Microproducts 3,445 300,000 Richey Electronics 3,188 - ---------------------------------------------------------------------------- 32,762 .Components and Peripherals: 1.7% 500,000 Oak Industries 12,438 435,000 Kronos 11,093 210,000 In Focus Systems 7,363
10
Number of Shares Value (000) - ---------------------------------------------------------------------------- 350,000 Exide Electronics Group $ 4,638 350,000 Planar Systems 4,463 205,000 Blonder Tongue Labs 2,716 80,000 Daktronics 300 - ---------------------------------------------------------------------------- 43,011 .Consumer Electronics: 0.1% 110,000 Universal Electronics 1,279 150,000 InterTAN 825 - ---------------------------------------------------------------------------- 2,104 ---------- Information Group: Total 495,332 - ---------------------------------------------------------------------------- Health Care Group: 11.4% .Biotechnology/Drug Delivery: 2.9% 260,000 RP Scherer 11,407 280,000 Watson Pharmaceuticals 11,200 562,000 North American Biologicals 7,411 450,000 Inhale Therapeutic Systems 6,862 130,000 Human Genome Sciences 5,005 70,000 Biogen 4,165 280,000 Sepracor 4,095 800,000 Corvas International 3,960 800,000 Corvas International Warrants 800 155,000 Protein Design Labs 3,817 170,000 Cygnus Therapeutic Systems 3,549 163,000 TheraTech 3,464 345,000 Ethical Holdings 3,234 100,000 Vertex Pharmaceuticals 2,650 133,000 CellPro 2,095 66,000 Incyte Pharmaceutical 1,881 64,000 Anesta 912 - ---------------------------------------------------------------------------- 76,507 .Medical Equipment: 3.9% 1,354,000 AMSCO International 18,956 580,000 Invacare 16,385 552,000 Thermedics 15,594 930,000 Kinetic Concepts 12,439 554,000 Respironics 11,634 340,000 Steris 10,200 345,000 Space Labs Medical 8,021 89,000 Boston Scientific 4,094 450,000 Affymetrix 2,025 48,000 Fresenius USA 978 50,000 Trex Medical 512 - ---------------------------------------------------------------------------- 100,838 .Hospital/Laboratory Supplies: 0.7% 273,000 Hillenbrand Industries 9,282 322,000 Sybron International 7,889 - ---------------------------------------------------------------------------- 17,171 .Services: 3.9% 967,000 Lincare Holdings 31,427 249,000 HBO & Company 23,468 582,000 Renal Treatment Centers 13,822 366,000 Apria Healthcare Group 11,620 150,000 ThermoTrex 6,412 450,000 Pharmaceuticals Marketing Services 6,075 833,333 Walsh International, Cv. Pfd. 5,000 185,000 MDL Information Systems 3,897 - ---------------------------------------------------------------------------- 101,721 ---------- Health Care Group: Total 296,237 - ---------------------------------------------------------------------------- Consumer Goods and Services Group: 11.7% .Retail: 2.0% 980,000 Borders Group 27,930 295,000 Quality Food Centers 7,227 440,000 Cato 4,455 215,000 Lands' End 3,762 275,000 Mikasa 3,266 220,000 Duckwall Alco Stores 2,420 50,000 Nine West 2,162 70,000 Dave & Buster's 1,120 - ---------------------------------------------------------------------------- 52,342 .Recreational Vehicles: 1.9% 1,100,000 Harley-Davidson 42,762 317,000 Thor Industries 5,944 - ---------------------------------------------------------------------------- 48,706 .Food: 0.4% 634,000 Au Bon Pain 5,389 325,000 Quantum Restaurant Group 5,362 - ---------------------------------------------------------------------------- 10,751 .Entertainment and Leisure: 4.1% 1,400,000 Carnival 38,500 2,000,000 Alliance Entertainment 18,750 215,000 GC Companies 8,170 265,000 Royal Caribbean Cruises 6,459
11 Acorn Fund .Statement of Investments (unaudited)
Principal Amount or Number of Shares Value (000) - ---------------------------------------------------------------------------- 200,000 Anchor Gaming $ 6,450 276,000 Carmike Cinemas 6,279 472,000 Hollywood Park, Cv. Pfd. 4,602 1,235,000 American Media 4,477 167,000 Rio Hotel & Casino 2,547 250,000 Players International 2,379 188,000 Station Casinos 2,185 535,000 Monarch Casino & Resort 2,073 200,000 Playboy Enterprises, Cl. B 2,025 $ 6,250 Grand Palais Casino, 14% Note Due 2/25/98 937 - ---------------------------------------------------------------------------- 105,833 .Manufacturers: 3.3% 1,650,000 Newell 44,137 475,000 First Brands 13,300 375,000 Wolverine World Wide 10,500 147,000 St. John Knits 9,904 232,000 Norwood Promotional 4,814 700,000 O'Sullivan Industries 4,112 - ---------------------------------------------------------------------------- 86,767 ---------- Consumer Group: Total 304,399 - ---------------------------------------------------------------------------- Finance Group: 15.7% .Banks: 1.5% 96,000 BayBanks 10,320 285,000 Union Planters 8,621 206,000 First Commerce 6,798 309,000 Texas Regional Bancshares 6,798 105,000 First American 4,672 104,000 Riverside National Bank 1,417 - ---------------------------------------------------------------------------- 38,626 .Savings & Loans: 2.8% 756,000 Washington Federal 16,443 700,000 Peoples Bank Bridgeport 15,050 375,000 Coast Savings 11,719 390,000 Washington Mutual 11,602 260,000 TCF Financial 9,425 162,000 Bell Bancorp 5,994 156,000 Indiana Federal 2,886 - ---------------------------------------------------------------------------- 73,119 .Insurance: 1.8% 836,000 Baldwin & Lyons, Cl. B 11,913 351,000 United Fire & Casualty 10,881 331,000 Transnational Re 7,241 127,000 Foremost 6,985 318,000 ALLIED Life Financial 5,525 216,000 Leucadia National 5,373 - ---------------------------------------------------------------------------- 47,918 .Money Management: 2.7% 440,000 United Asset Management 20,405 784,000 Baker Fentress 14,406 434,000 SEI 9,765 1,546,000 Phoenix Duff and Phelps 9,662 241,000 BISYS Group 7,983 127,000 T. Rowe Price Associates 6,731 - ---------------------------------------------------------------------------- 68,952 .Credit Cards: 4.9% 842,000 ADVANTA, Cl. A 43,784 520,000 ADVANTA, Cl. B 24,700 600,000 First USA 33,975 575,000 National Data 19,622 220,000 Concord EFS 5,830 15,000 First USA Paymentech 529 - ---------------------------------------------------------------------------- 128,440 .Other: 2.0% 1,393,000 Mercury Finance 19,676 879,000 Americredit 12,196 237,000 Aames Financial 8,532 1,220,000 Cash America 6,557 320,000 DVI Health Services 3,960 - ---------------------------------------------------------------------------- 50,921 ---------- Finance Group: Total 407,976 - ---------------------------------------------------------------------------- Industrial Goods and Services: 10.6% .Steel: 1.3% 1,090,000 Worthington Industries 21,664 175,000 Schnitzer Steel 4,572 300,000 Gibraltar Steel 4,500 264,000 Atchison Casting 3,366 - ---------------------------------------------------------------------------- 34,102 .Machinery: 5.4% 800,000 Thermo Electron 47,600 540,000 Sealed Air 18,427 800,000 Baldor Electric 16,100 600,000 Thermo Fibertek 13,350 150,000 Nordson 9,112
12
Principal Amount or Number of Shares Value (000) - ---------------------------------------------------------------------------- 120,000 Teleflex $ 5,415 180,000 Bearings 5,108 96,000 Mine Safety Appliances 4,440 135,000 Valmont Industries 4,050 110,000 Applied Power 3,589 300,000 Douglas & Lomason 3,488 180,000 Myers Industries 3,038 162,000 US Can 2,754 500,000 Stevens International, Cl. A 1,531 34,000 Stevens International, Cl. B 123 205,000 Hein-Werner 1,179 34,000 Thermo Sentron 544 - ---------------------------------------------------------------------------- 139,848 .Furniture and Textiles: 1.2% 600,000 Unifi 14,775 745,000 Lilly Industries, Cl. A 10,151 110,000 Zoltek 5,211 - ---------------------------------------------------------------------------- 30,137 .Services: 2.7% 600,000 Expeditors International of Washington 15,750 215,000 Loral 10,535 430,000 Hub Group 7,579 444,000 Wackenhut, Cl. B 7,104 60,000 Wackenhut, Cl. A 1,178 530,000 Thermo Terratech 7,089 256,000 HA.LO Industries 7,072 374,000 Thomas Group 5,330 154,000 Unitog 3,850 $2,900 Western Water, 9% Cv. Note Due 9/25/05 3,474 115,000 AG Services of America 1,294 70,000 Superior Services 928 - ---------------------------------------------------------------------------- 71,183 ---------- Industrial Group: Total 275,270 - ---------------------------------------------------------------------------- Energy and Minerals Group: 6.7% .Independent Power: 2.0% 995,000 The AES Corporation 24,751 475,000 CalEnergy 12,647 500,000 Thermo Ecotek 10,062 285,000 Thermo Power 3,634 - ---------------------------------------------------------------------------- 51,094 Number of Shares Value (000) - ---------------------------------------------------------------------------- .Oil & Gas Producers: 2.0% 440,000 United Meridian $ 10,505 770,000 Global Natural Resources 10,202 300,000 Devon Energy 7,050 600,000 Tesoro Petroleum 5,100 400,000 Forest Oil 4,950 380,000 Louis Dreyfus Natural Gas 4,132 650,000 Coho Resources 4,062 200,000 St. Mary Land & Exploration 3,100 360,000 Abraxas Petroleum 1,935 110,000 Abraxas Petroleum CVRs 945 100,000 Basin Exploration 512 - ---------------------------------------------------------------------------- 52,493 .Distribution/Marketing/Refining: 1.0% 606,000 Southern Union 12,423 510,000 NGC 6,502 143,000 KN Energy 4,451 50,000 Atmos Energy 1,150 - ---------------------------------------------------------------------------- 24,526 .Oil Services: 1.4% 314,000 Atwood Oceanics 11,304 809,000 Digicon 8,697 255,000 Energy Ventures 6,789 335,000 Landmark Graphics 5,569 160,000 J Ray McDermott 3,100 20,000 Seacor Holdings 737 - ---------------------------------------------------------------------------- 36,196 .Mining: 0.3% 250,000 Coeur D'Alene Mines 5,094 250,000 Zeigler Coal Holding 3,625 - ---------------------------------------------------------------------------- 8,719 ---------- Energy Group: Total 173,028 - ---------------------------------------------------------------------------- Real Estate Group: 1.8% 829,000 The Rouse Company 18,134 210,000 Equity Residential Properties Trust 6,563 165,000 Weingarten Realty Investors 5,919 155,000 Forest City Enterprises, Cl. B 5,716 123,000 Forest City Enterprises, Cl. A 4,520 120,000 First Washington Realty Trust, Cv. Pfd. 2,985 80,000 First Washington Realty Trust 1,520
13 Acorn Fund .Statement of Investments (unaudited)
Number of Shares Value (000) - ---------------------------------------------------------------------------- 243,000 Sunstone Hotel Investors $ 2,491 ---------- Real Estate Group: Total 47,848 - ---------------------------------------------------------------------------- Foreign Securities: 20.8% .Canada: 0.7% 800,000 Shaw Communications, Cl. B 5,505 125,000 BCE Mobile Communications 4,094 400,000 Ranger Oil 2,800 200,000 Shaw Industries 2,092 250,600 Veritas Energy Services 1,931 200,000 Cogeco Cable 1,211 - ---------------------------------------------------------------------------- 17,633 .United Kingdom/Ireland: 3.4% 400,000 International CableTel 12,050 500,000 Securicor Group, Cl. A 9,144 1,200,000 Serco Group 9,031 2,230,000 Medeva 8,323 450,000 ADT 7,931 600,000 Comcast UK Cable Partners 7,575 1,700,000 Invesco 6,669 68,000 Invesco ADS 2,728 1,200,000 N. Brown Group 5,404 580,000 Oriflame 4,356 600,000 Powerscreen International 3,984 3,750,000 Waterford Wedgwood (Ireland) 3,778 1,000,000 Capital 3,282 1,200,000 Body Shop International 2,693 995,000 North American Gas Investors Trust 1,002 4,500,000 Rhino Group 721 700,000 Pittencrieff Resources 492 - ---------------------------------------------------------------------------- 89,163 .Germany/Austria: 0.6% 425,000 United International Holdings (Austria) 6,800 20,000 Escada 3,746 50,000 Flughafen Wien (Austria) 3,419 8,000 Binding-Brauerei 3,089 - ---------------------------------------------------------------------------- 17,054 .Nordic Countries: 2.1% 460,000 WM Data Nordic (Sweden) 20,302 110,000 Hennes & Mauritz, Cl. B (Sweden) 7,817 120,000 Autoliv (Sweden) 6,122 600,000 SensoNor (Norway) 5,239 150,000 Huhtamki (Finland) 4,791 193,000 Pricer, Cl. B (Sweden) 3,754 29,000 Chr. Hansen Holding, Cl. B (Denmark) 3,353 (formerly known as Chr. Hansen's Laboratorium) 100,000 Sysdeco Group (Norway) 1,793 90,000 Benefon (Finland) 1,408 50,000 Sentra, Cl. A (Finland) 847 10,000 Esselte (Sweden) 177 - ---------------------------------------------------------------------------- 55,603 .Netherlands: 0.4% 77,000 Getronics 5,582 24,000 Telegraaf Holdings 4,851 - ---------------------------------------------------------------------------- 10,433 .Switzerland: 1.0% 6,000 Societe Generale de Surveillance 12,525 14,000 Liechtenstein Global Trust 7,715 13,200 Sece Cortaillod Holdings 7,075 - ---------------------------------------------------------------------------- 27,315 .France: 1.1% 54,000 Guilbert 7,797 70,000 Ecco Travail Temporaire 6,187 63,000 Sligos 5,731 26,000 Cetelem 5,071 14,000 Ecco SA 3,228 - ---------------------------------------------------------------------------- 28,014 .Spain/Portugal: 0.4% 300,000 Vallehermoso 5,390 375,000 Filmes Lusomundo (Portugal) 2,451 70,000 Cortefiel 1,636 - ---------------------------------------------------------------------------- 9,477 .Italy/Greece: 1.1% 200,000 Hellenic Bottling (Greece) 7,467 4,700,000 Banca Fideuram 6,874 150,000 Cellular Communications International 4,988 90,000 Industrie Natuzzi 4,894 1,200,000 Costa Crociere 2,124 1,100,000 Tecnost 1,818 - ---------------------------------------------------------------------------- 28,165
14
Number of Shares Value (000) - ---------------------------------------------------------------------------- .Israel: 0.2% 200,000 Pec Israel Economic $ 4,300 - ---------------------------------------------------------------------------- 4,300 .India: 0.3% 300,000 IS Himalaya Fund 4,260 39,393 Housing Development Finance 3,743 298,700 Industrial Credit & Investment Corp. of India 828 - ---------------------------------------------------------------------------- 8,831 .Hong Kong: 0.5% 3,500,000 Varitronix International 6,427 7,000,000 JCG Holdings 6,382 - ---------------------------------------------------------------------------- 12,809 .China: 0.4% 810,000 AES China Generating 6,784 200,000 The Investment Company of China 1,700 111,275 The China Investment Company 932 - ---------------------------------------------------------------------------- 9,416 .Singapore: 0.4% 5,000,000 Genting International 9,375 - ---------------------------------------------------------------------------- 9,375 .Malaysia: 0.9% 1,950,000 Resorts World 11,105 1,260,000 Kian Joo Can Factory 7,026 168,000 Kian Joo Can Factory, Warrants 5/22/99 525 460,000 O.Y.L. Industries 4,002 220,000 Arab Malaysian Finance 1,053 - ---------------------------------------------------------------------------- 23,711 .Thailand: 0.6% 100,000 The Thailand Fund 10,216 3,300,000 Sinpinyo Fund V 2,387 200,000 Thai President Foods 1,451 71,500 International Cosmetics 595 - ---------------------------------------------------------------------------- 14,649 .Korea/Taiwan: 1.7% 134,957 Shinsegae 9,574 15,043 Shinsegae (New) 1,002 120,000 Formosa Fund 8,760 257,429 Kookmin Bank 6,012 5,000 Korea Mobile Telecom 5,931 40,000 Korea Mobile Telecom GDS 1,830 320,000 President Enterprises (Taiwan) 4,280 80,000 Seoul International Trust 3,800 300,000 Korea-Europe Fund 2,437 - ---------------------------------------------------------------------------- 43,626 .Indonesia/Philippines: 0.7% 6,000,000 PILTEL (Philippines) 8,136 960,000 Tigaraksa Satria 4,764 195,501 Unilever Indonesia 3,178 2,400,000 Mayora Indah 1,771 - ---------------------------------------------------------------------------- 17,849 .Japan: 1.7% 150,000 Noritsu Koki 5,197 75,000 Secom 4,909 132,000 Royal 4,140 209,000 Mr. Max 3,875 160,000 Heiwa 3,820 90,000 Sankyo 3,792 56,100 Paramount Bed 3,619 110,000 Tostem 3,440 77,000 Aucnet 3,316 40,000 Nichiei 2,678 60,000 Promise 2,669 46,000 Tsutsumi Jewelry 2,235 33,000 Sony Music Entertainment 1,699 - ---------------------------------------------------------------------------- 45,389 .Australia/New Zealand: 0.7% 1,700,000 Sky City (New Zealand) 7,121 1,600,000 Village Roadshow 6,634 1,800,000 Burswood Property Trust 2,408 740,000 Petroleum Securities 1,910 - ---------------------------------------------------------------------------- 18,073 .Mexico: 0.6% 350,000 Kimberly Clark de Mexico 6,683 1,000,000 Nadro, Series L 4,310 300,000 Grupo Radio Centro 2,513 4,200,000 Grupo Herdez, Series B 1,192 600,000 Fondo Opcion, Series B 513 170,000 Cofar, Series B 135 - ---------------------------------------------------------------------------- 15,346
15 Acorn Fund .Statement of Investments (unaudited)
Number of Shares Value (000) - ---------------------------------------------------------------------------- .Brazil: 0.4% 15,000,000 Itau Banco PN $ 5,331 190,000,000 Cemig 5,329 - ---------------------------------------------------------------------------- 10,660 .Other Latin America: 0.9% 170,000 Panamerican Beverages (Panama) 6,864 130,000 Banco Latinoamericano de Export (Panama) 6,419 250,000 Credicorp (Peru) 4,500 160,000 IRSA (Argentina) 4,500 - ---------------------------------------------------------------------------- 22,283 ---------- Foreign Group: Total 539,174 Total Common Stocks and Other ---------- Equity-Like Securities: 97.8% $2,539,264 ---------- Money Market Instruments: 2.3% 59,443 ---------- Total Investments: 100.1% 2,598,707 ---------- Cash and Other Assets Less Liabilities: (0.1%) (994) ---------- Total Net Assets: 100% $2,597,713 - ----------------------------------------------------------------------------
.Portfolio Diversification At March 31, 1996, the Fund's foreign portfolio of investments as a percentage of net assets was diversified as follows:
Percent - ------------------------------------------ .Consumer Goods and Services 7.2% .Information 5.1 .Finance 4.4 .Industrial Goods and Services 2.0 .Health Care 0.9 .Energy and Minerals 0.7 .Real Estate 0.4 .Transportation 0.1 ----- Total Foreign Portfolio 20.8%
16 Acorn International .Major Portfolio Changes in the First Quarter
Principal Amount or Number of Shares --------------------- 12/31/95 3/31/96 Additions - ------------------------------------------------------------------- Europe .Germany Cewe Color Holding 0 21,000 Escada 38,000 40,000 Marschollek Lautenschlager 3,100 5,000 .Italy Editoriale L'Espresso 925,000 1,000,000 Saipem SPA 1,150,000 2,200,000 .Sweden Esselte 0 10,000 .France Axime Ex Segin 65,000 80,000 Ecco SA 0 14,000 Fininfo 0 39,000 .United Kingdom Bluebird Toys 0 460,000 Edinburgh Fund Managers 300,000 850,000 HALMA 0 270,000 Seton Healthcare Group 390,000 640,000 Tunstall 0 550,000 .Netherlands Kempen 390,000 410,000 Wegener 0 20,000 .Denmark Kompan International 22,000 27,000 .Spain Mapfre Vida 0 100,000 Vallehermoso 300,000 350,000 - ------------------------------------------------------------------- Asia .India IS Himalaya Fund 0 300,000 Max India 174,450 193,850 Max India Zero Coupon 0 Rs 50,000 Tube Investments GDR 456,000 810,000 .Malaysia Arab Malaysian Finance 0 930,000 Malaysian Assurance Alliance 1,699,500 1,799,500 .Indonesia Bank Niaga 1,850,000 2,350,000 Modern Photo Film 750,000 1,350,000 .Philippines Int'l Container Terminal Services 11,000,000 14,000,000 Universal Robina 11,000,000 12,000,000 .Thailand Bangkok Insurance 0 320,000 Singer Thailand 100,756 201,512 .Hong Kong First Sign International Holdings 0 24,000,000 Vitasoy International Holdings 14,000,000 15,000,000 .Japan Central Uni 0 117,000 (includes effect of 30% stock bonus) HIS 0 37,000 Hokuto 140,000 208,000 (includes effect of 30% stock bonus) Mars Engineering 0 13,000 Nichiei 124,000 130,000 Nihon Jumbo 0 43,720 (includes effect of 20% stock bonus) Noritsu Koki 0 200,000 (includes effect of 50% stock bonus) Royal 0 165,000 (includes effect of 10% stock bonus) Ryohin Keikaku 0 34,600 (includes effect of 30% stock bonus) Tsutsumi Jewelry 81,000 85,000 .Korea/Taiwan Daehan City Gas 0 85,000 Korea Housing Bank 0 119,320 Shinsegae 88,666 100,000 Formosa Fund 50,000 80,000 Formosa Growth Fund 155,000 230,000 Taipei Fund 0 70,000
17 Acorn International .Major Portfolio Changes in the First Quarter
Number of Shares ------------------------ 12/31/95 3/31/96 Additions (continued) - -------------------------------------------------------------------- Latin America .Mexico Bufete Industrial 370,000 380,000 Grupo Industrial Bimbo 0 930,000 Kimberly Clark de Mexico 500,000 550,000 .Other Latin America Panamerican Beverages 150,000 170,000 Ceteco Holdings 0 75,000 .Argentina Cresud 0 1,200,000 IRSA 260,000 280,000 Quilmes Industrial 0 300,000 Quilmes Industrial Pfd. 0 150,000 .Chile Genesis Chile Fund 130,000 150,000 Santa Isabel 0 240,000 .Brazil Banco Itau Pfd. 26,000,000 28,000,000 - -------------------------------------------------------------------- Other Countries .Canada Pan East Petroleum Warrants 0 700,000 Shaw Industries 0 435,000 Tesco 0 300,000 .Australia Austereo 2,900,000 3,760,000 Petroleum Securities Australia Sales 1,400,000 2,500,00 Sales - -------------------------------------------------------------------- Europe .Germany SAP Pfd. 25,000 0 .Austria Flughafen Wien 170,000 145,000 .Italy Industrie Natuzzi 130,000 105,000 .Sweden Althin Medical AB 265,000 130,000 Elekta Instrument, Cl. B 250,000 0 Hennes & Mauritz, Cl. B 250,000 185,000 .France Coflexip 390,000 0 Technip 55,000 0 .United Kingdom Invesco 3,000,000 2,000,000 .Netherlands De Boer Winkelbedrijven 90,000 0 Telegraaf Holdings 57,000 43,000 .Norway Elkjoep Norge 400,000 300,000 SensoNor 1,300,000 990,000 .Denmark OK Holding 106,000 0 .Portugal Banco Portuguese 120,444 0 Jeronimo Martins 110,000 0 .Finland Rautakirya, Cl. B 45,000 0 .Greece Teletypos 133,130 0 .Switzerland Zehnder Holding 10,000 5,000
18
Number of Shares ------------------------ 12/31/95 3/31/96 - -------------------------------------------------------------------- Asia .Hong Kong ABC Communication Holdings 12,100,000 4,500,000 Johnson Electric Holdings 2,500,000 0 Television Broadcasts 2,300,000 0 .China New World Infrastructure 2,500,000 0 .Japan Autobacs Seven 72,000 0 Sony Music Entertainment 104,000 50,000 .Korea Baik Yang 18,080 0 .Malaysia Genting 450,000 0 New Straits Times Press 2,000,000 500,000 O.Y.L. Industries 1,200,000 850,000 Sistem Televisyen Malaysia 2,100,000 0 .Singapore Clipsal Industries 1,600,000 0 Clipsal Industries Warrants 656,000 0 .Taiwan Baring Taiwan Fund 300,000 150,000 .Thailand International Cosmetics 360,000 237,100 Modernform 1,505,000 0 - -------------------------------------------------------------------- Latin America .Brazil Casa Anglo Brasileira Pfd. 20,000,000 0 Fabricadora De Pecas 120,000 0 Multibras Pfd. 3,000,000 0 White Martins 3,500,000,000 0 - -------------------------------------------------------------------- Other Countries .Canada Archer Resources 340,000 0 Enserv 400,000 0 .New Zealand Sky City 410,000 1,750,000 (includes effect of 5 for 1 stock split) .Australia Burswood Property Trust 4,500,000 2,700,000 Just Jeans Holdings 3,100,000 0
19 Acorn International .Portfolio Diversification At March 31, 1996, the Fund's portfolio of investments as a percentage of net assets was diversified as follows:
Value (000) Percent - ------------------------------------------------------------- .Information Distribution $ 81,336 5.6% Computer Systems 80,499 5.5 Broadcasting and CATV 79,387 5.5 Mobile Communications 43,653 3.0 Consumer Electronics 29,584 2.0 Software 26,321 1.8 Instrumentation 4,316 0.3 - ------------------------------------------------------------- 345,096 23.7 .Health Care Biotechnology/Drug Delivery 40,783 2.8 Hospital/Laboratory Supplies 30,395 2.1 Services 23,896 1.6 Equipment 16,760 1.2 - ------------------------------------------------------------- 111,834 7.7 .Consumer Goods and Services Retail 168,076 11.5 Manufacturers 94,814 6.5 Food 84,180 5.8 Entertainment and Leisure 59,207 4.1 Recreational Vehicles 4,247 0.3 - ------------------------------------------------------------- 410,524 28.2 .Finance Banks 87,549 6.0 Money Management 84,633 5.8 Insurance 15,998 1.1 Other 106,047 7.2 - ------------------------------------------------------------- 294,227 20.1 .Industrial Goods and Services Machinery Processing 61,379 4.2 Services 54,996 3.8 Steel 5,176 0.4 Forest Products and Construction 4,369 0.3 Furniture and Textiles 11 0.0 - ------------------------------------------------------------- 125,931 8.7 .Energy and Minerals Oil and Gas Producers 26,867 1.9 Cogeneration 18,457 1.3 Oil Services 15,327 1.1 Mining 6,454 0.4 Refining/Marketing 1,949 0.1 - ------------------------------------------------------------- 69,054 4.8 .Real Estate 20,010 1.4 - ------------------------------------------------------------- .Transportation 9,916 0.8 - ------------------------------------------------------------- ---------------------- Total Common Stocks and Other Equity-Like Securities 1,386,592 95.4 ---------------------- Money Market Instruments 70,367 4.8 ---------------------- Total Investments 1,456,959 100.2 Cash and Other Assets less ---------------------- Liabilities (3,357) (0.2) ---------------------- Net Assets $1,453,602 100.0% =============================================================
20 Acorn International .Statement of Investments (unaudited) March 31, 1996
Number of Shares Value (000) - ----------------------------------------------------------------------- Common Stocks and Other Equity-Like Securities: 95.4% - ----------------------------------------------------------------------- Europe: 50.4% .Germany/Austria: 7.0% 120,000 Fresenius $ 21,945 14,000 Fresenius Pfd. 2,489 Dialysis Equipment and Solutions 135,000 Rhoen Klinikum Pfd. 14,082 90,000 Rhoen Klinikum 9,814 Hospital Management 145,000 Flughafen Wien 9,916 Vienna Airport Authority (Austria) 40,000 Escada 7,491 Designer Fashions 21,000 Cewe Color Holding 6,899 Photographic Developing & Printing 400,000 United International Holdings 6,400 Cable Television for Austria and Other Countries (Austria) 15,000 Binding-Brauerei 5,791 Brewer 5,000 Marschollek Lautenschlager 4,538 Financial Planning 45,000 VAE Eisenbahnsysteme 4,525 Railroad Switches (Austria) 15,000 Pfleiderer 4,369 Construction Materials 30,000 BWT 3,915 Water Filtration Systems (Austria) - ----------------------------------------------------------------------- 102,174 .Denmark: 0.8% 47,000 Chr. Hansen Holding, Cl. B 5,435 (formerly known as Chr. Hansen's Laboratorium) Rennet, Food Additives & Allergens 27,000 Kompan International 4,311 Playground Equipment - ----------------------------------------------------------------------- 9,746 .Finland:3.4% 500,000 TT Tieto, Cl. B (formerly known as Tietotehdas Cl. B) 16,725 Computer Services/Consulting 300,000 Raision Tehtaat, Series V 10,294 Foodstuffs & Specialty Chemicals 370,000 Benefon 5,789 Mobile Telephones 180,000 Huhtamaki 5,749 Confectionery & Contraceptives 100,000 Vaisala, Cl. A 4,316 Meteorological Instruments 80,000 Fiskars, Series A 4,230 Scissors & Power Supply Equipment 105,000 Sentra, Cl. A 1,779 Convenience Stores, Restaurants - ----------------------------------------------------------------------- 48,882 .Norway: 2.3% 785,000 Sysdeco 14,077 Software Tool Sets & Systems 990,000 SensoNor 8,645 Electronic Sensors for Airbags 300,000 Elkjoeb Norge 5,847 Consumer Electronics Retailer 250,000 Maritime Group 5,653 Oil Field Equipment & Services - ----------------------------------------------------------------------- 34,222 .Sweden: 6.0% 800,000 WM Data Nordic 35,308 Computer Services/Consulting 185,000 Hennes & Mauritz, Cl. B 13,147 Apparel Stores 215,000 Getinge Industrier 11,001 Sterilization & Disinfection Equipment 170,000 Autoliv 8,673 Seatbelts & Airbags 575,000 Allgon, Series B 8,603 Mobile Telephone Antennae & Systems 400,000 Pricer, Cl. B 7,780 Electronic Shelf Labels for Supermarkets 130,000 Althin Medical AB 2,801 Dialysis & Other Medical Equipment 10,000 Esselte 177 Office Supplies & Related Equipment - ----------------------------------------------------------------------- 87,490 .France: 5.0% 80,000 Axime Ex Segin 10,169 Computer Services/Consulting 60,000 Guilbert 8,663 Office Supplies Distributor 95,000 Sligos 8,642 Computer Services/Credit Card Processing 42,000 Cetelem 8,191 Consumer Loans 62,000 NRJ 7,745 Radio Network 65,000 Spir Communication 7,591 Newspaper Publisher & Printer 42,000 Virbac 5,672 Veterinary Pharmaceuticals Manufacturer 56,000 Ecco Travail Temporaire 4,949 Temporary Employment
21 Acorn International .Statement of Investments (unaudited)
Number of Shares Value (000) - ----------------------------------------------------------------------- 52,000 CEP Communications $ 4,931 Trade Magazines & Book Publishing 39,000 Fininfo 3,602 Financial Data Feeds 14,000 Ecco SA 3,228 Temporary Employment - ----------------------------------------------------------------------- 73,383 .United Kingdom/Ireland: 11.3% 467,000 International CableTel 14,068 Cable TV & Telephone System 1,800,000 Serco Group 13,546 Facilities Management 1,800,000 Oriflame International 13,519 Natural Cosmetics 1,550,000 Powerscreen International 10,292 Mobile Crushing & Screening Equipment 2,000,000 Capita Group 9,617 Outsourcing Government Services 850,000 Edinburgh Fund Managers 8,953 Investment Management 2,500,000 Capital 8,205 Crockfords Casino 430,000 Securicor Group, Cl. A 7,864 Mobile Communications 2,000,000 Invesco 7,846 Investment Management 1,700,000 N. Brown Group 7,655 Mail Order Women's Clothing 2,034,000 Medeva 7,591 Pharmaceuticals 670,000 Ethical Holdings 6,281 Drug Delivery 450,000 Comcast UK Cable Partners 5,681 Cable TV & Telephone System 1,700,000 Rotork 5,553 Valve Actuators 3,700,000 City Centre Restaurants 5,253 Fast Food Restaurants 410,000 Vosper Thornycroft Holdings 5,176 Naval Shipbuilding 1,280,000 Ivory & Sime 4,514 Investment Management 640,000 Seton Healthcare Group 4,426 Pharmaceuticals 500,000 Dorling Kindersley 4,221 Reference Book & CD-ROM Publisher 1,800,000 Body Shop International 4,039 Natural Cosmetics & Toiletries 550,000 Tunstall 3,098 Monitoring Equipment 13,000,000 Rhino Group 2,084 Video Game Stores 460,000 Bluebird Toys 1,987 Toy Manufacturer 1,750,000 Pittencrieff Resources 1,229 Oil Producer 1,000,000 North American Gas Investors Trust 1,007 Closed-End Fund 270,000 HALMA 758 Fire Detection Devices & Burglar Alarms - ----------------------------------------------------------------------- 164,463 .Switzerland: 4.6% 25,500 Phoenix Mecano 14,352 Electrical Components Manufacturer 6,500 Societe Generale de Surveillance 13,569 Inspection/Testing of Trade Goods 21,600 Sece Cortaillod Holdings 11,577 Cables, Cable TV & Electrical Supply Distribution 5,000 Bobst 8,233 Packaging Machinery 13,000 Liechtenstein Global Trust 7,164 Banking & Investment Management 7,000 Suedelektra Holding 6,351 Diversified Pool of Commodity-Related Projects 10,000 Prodega 3,108 Cash-and-Carry Retailer 5,000 Zehnder Holding 2,226 Specialty Radiators - ----------------------------------------------------------------------- 66,580 .Italy/Greece: 5.0% 8,500,000 Banca Fideuram 12,432 Life Insurance & Mutual Funds 600,000 Gewiss 8,609 Electrical Components Manufacturer 550,000 Banca Popolare Di Bergamo 8,437 Regional Bank 2,200,000 Saipem SPA 7,307 Pipeline Construction & Drilling Contractor 170,000 Hellenic Bottling Company 6,347 Coca-Cola Bottler (Greece) 120,000 Ergo Bank 5,881 Bank (Greece) 105,000 Industrie Natuzzi 5,709 Leather Furniture Manufacturer 3,100,000 Costa Crociere 5,488 Cruise Ship Line 1,100,000 Banca Di Legnano 4,124 Regional Bank 80,000 Cellular Communications International 2,660 Mobile Communications
22
Number of Shares Value (000) - ---------------------------------------------------------------------------- 1,600,000 Tecnost $ 2,645 ATM, Lotto, Toll Collection Equipment Manufacturer 1,000,000 Editoriale L'Espresso 2,357 Newspaper & Magazine Publisher - ---------------------------------------------------------------------------- 71,996 .Turkey: 0.5% 4,500,000 Tat Konservcelik Sanayii 2,762 Tomato Paste 90,000,000 Sabah Yayincilik 2,127 Newspapers, Magazines 62,000,000 Medya Holdings 1,574 Newspapers, Magazines, Television 30,000,000 Hurriyet Gazetecilik 1,481 Newspapers, Magazines - ---------------------------------------------------------------------------- 7,944 .Spain/Portugal: 1.9% 350,000 Vallehermoso 6,288 Residential Property Developer & Landlord 100,000 Mapfre Vida 5,720 Finance-Insurance 110,000 Conservera Campofrio 4,165 Sausage Maker 160,000 Cortefiel 3,738 Apparel Retailing 170,000 Lusotur 3,069 Real Estate/Resort Developer (Portugal) 375,000 Oscar Mayer S.A. 1,320 Sausage Maker 350,000 Televisao Independente 1,204 Television Station (Portugal) 235,000 Estoril Sol 1,147 Casino Resort (Portugal) 100,000 Filmes Lusomundo 653 Newspapers, Radio, Video, Film Distribution (Portugal) 65,000 Marco Iberica Midesa 445 Magazine Distributor - ---------------------------------------------------------------------------- 27,749 .Netherlands: 2.5% 260,000 Getronics 18,849 Computer Consulting 43,000 Telegraaf Holdings 8,691 Newspaper Publisher 410,000 Kempen 4,466 Stock Brokerage/Investment Management 225,000 Fugro McClelland 2,696 Engineering, Consulting & Surveying 20,000 Wegener 2,330 Newspaper Publisher - ---------------------------------------------------------------------------- 37,032 .Eastern Europe: 0.1% 180,813 Bank Komunalny 560 Bank (Poland) - ---------------------------------------------------------------------------- 560 ---------- Europe: Total 732,221 - ---------------------------------------------------------------------------- Asia: 28.8% .China: 0.3% 390,000 AES China Generating 3,266 Independent Power 111,275 The China Investment Company 932 Closed-End Fund - ---------------------------------------------------------------------------- 4,198 .Hong Kong: 3.8% 5,000,000 Varitronix International 9,181 LCD Manufacturer 10,000,000 JCG Holdings 9,117 Consumer Finance 10,000,000 Li and Fung 8,923 Sourcing of Consumer Goods 15,000,000 Vitasoy International Holdings 6,595 Soya Milk Manufacturer 20,000,000 Golden Harvest Entertainment 6,530 Movie Distribution & Exhibition 11,000,000 Manhattan Card 5,832 Chase's Local Credit Card 7,500,000 Chen Hsong Holdings 4,170 Plastic Injection Machines 24,000,000 First Sign International Holdings 3,538 Brand Name Apparel 4,500,000 ABC Communication Holdings 885 Paging Service - ---------------------------------------------------------------------------- 54,771 .India/Pakistan: 1.8% 82,702 Housing Development Finance 7,858 Mortgage Lender 300,000 IS Himalaya Fund 4,260 Closed-End Fund 810,000 Tube Investment GDR 2,835 Bicycle Manufacturer 987,800 Industrial Credit & Investment Corporation of India 2,737 Bank/Financial Services 597,800 Zee Telefilms 2,244 Hindi Television Programming
23 Acorn International .Statement of Investments (unaudited)
Principal Amount or Number of Shares Value (000) - ---------------------------------------------------------------------------- 221,785 Pakistan State Oil $ 1,949 Oil Distribution (Pakistan) 193,850 Max India 1,535 Rs 50,000 Max India Zero Coupon 733 Mobile Communications 342,100 Kotak Mahindra Finance 1,033 Consumer Finance Company 525,000 Business India TV 887 Satellite Television Broadcasting Network 2,000,000 Centurion Quantum Growth 352 Closed-End Fund 71,800 Mirc Electronic 204 Consumer Electronics Health Care 14,900 Adamjee Insurance 58 Insurance (Pakistan) - ---------------------------------------------------------------------------- 26,685 .Japan: 8.3% 200,000 Secom 13,090 Security Alarm Systems 250,000 Promise 11,119 Consumer Finance 130,000 Nichiei 8,703 Lender to Small & Medium Businesses 114,000 Sanyo Shinpan 8,433 Consumer Finance 195,000 Sankyo 8,216 Pachinko Machine Manufacturer 340,000 Heiwa 8,118 Pachinko Machine Manufacturer 240,000 Tostem 7,506 Window Sash Manufacturer 208,000 Hokuto 7,011 Mushroom Grower 200,000 Noritsu Koki 6,929 Photo Processing Lab Manufacturer 143,000 Aucnet 6,159 Used Auto Auctions Via Satellite 92,400 Paramount Bed 5,961 Hospital Bed Manufacturer 165,000 Royal 5,176 Retail Auto Parts 85,000 Tsutsumi Jewelry 4,131 Jewelry Manufacturer, Retailer & Wholesaler 198,000 Mr. Max 3,671 Household Goods & Appliance Retailer 117,000 Central Uni 2,958 Health Care/Medical Equipment 141,000 Homac 2,799 Discount Retailer 34,600 Ryohin Keikaku 2,754 Specialty Consumer Goods Retailer 50,000 Sony Music Entertainment 2,575 Recorded Music/CDs 37,000 HIS 2,103 Travel Agent 43,720 Nihon Jumbo 1,924 Photo Processing Lab 13,000 Mars Engineering 949 Gaming Systems & Machinery - ---------------------------------------------------------------------------- 120,285 .Korea/Taiwan: 5.2% 19,000 Korea Mobile Telecom 22,539 Mobile Communications 440,000 Kookmin Bank 10,276 Retail Bank 85,000 Daehan City Gas 6,845 Gas Utility 90,161 Shinsegae 6,396 9,839 Shinsegae (New) 655 Department Stores 80,000 Formosa Fund 5,840 Closed-End Fund (Taiwan) 400,000 President Enterprises 5,350 Food Manufacturer & Distributor (Taiwan) 70,000 Taipei Fund 5,110 Closed-End Fund (Taiwan) 225,000 Daehan Blue Chip Index Trust 4,848 Closed-End Fund 230,000 Formosa Growth Fund 2,904 Closed-End Fund (Taiwan) 83,250 Korea Housing Bank Old 2,203 36,070 Korea Housing Bank New 1,021 Bank 150,000 Baring Taiwan Fund 1,219 Closed-End Fund (Taiwan) - ---------------------------------------------------------------------------- 75,206 .Malaysia: 2.3% 1,799,500 Malaysian Assurance Alliance 11,245 Insurance 850,000 O.Y.L. Industries 7,396 Air Conditioners 1,400,000 Malaysian Oxygen 7,032 Industrial Gases Producer & Distributor 930,000 Arab Malaysian Finance 4,450 Consumer Finance 500,000 New Straits Times Press 2,571 Newspaper Publisher - ---------------------------------------------------------------------------- 32,694
24
Number of Shares Value (000) - ---------------------------------------------------------------------------- .Indonesia: 2.5% 1,633,000 Tigaraksa Satria $ 8,104 Distributor of Consumer Goods 1,350,000 Modern Photo Film 7,335 Fuji Film Distributor 2,350,000 Bank Niaga 5,743 Banking 3,000,000 Mustika Ratu 5,631 Traditional Cosmetics 6,500,000 Mayora Indah 4,797 Baked Goods/Candy 230,000 Unilever 3,739 Consumer Goods 1,200,000 Suba Indah 950 Beverage & Food - ---------------------------------------------------------------------------- 36,299 .Philippines: 2.0% 7,000,000 PILTEL 9,492 Communications 14,000,000 Int'l Container Terminal Services 8,155 Container Handling Terminals & Port Management 3,000,000 Philippine Savings Bank 5,901 Banking 12,000,000 Universal Robina 5,844 Snack Foods - ---------------------------------------------------------------------------- 29,392 .Singapore: 1.0% 5,200,000 Genting International 9,750 Cruise Line 950,000 Venture Manufacturing 3,375 1,109,900 Venture Manufacturing Warrants 7/26/99 2,074 Contract Electronics Manufacturer - ---------------------------------------------------------------------------- 15,199 .Thailand: 1.6% 200,000 Serm Suk 5,961 Pepsi Bottler 320,000 Bangkok Insurance 5,682 Finance-Insurance 600,000 Srithai Superware 4,518 Plastic/Melamine Tableware & Containers 300,000 Thai President Foods 2,176 Instant Noodles & Cookies 237,100 International Cosmetics 1,973 Consumer Goods Distribution 2,600,000 Sinpinyo Fund V 1,881 Closed-End Fund 201,512 Singer Thailand 1,693 Consumer Goods Distributor - ---------------------------------------------------------------------------- 23,884 ---------- Asia: Total 418,613 - ---------------------------------------------------------------------------- Latin America: 8.5% .Mexico: 2.5% 550,000 Kimberly Clark de Mexico 10,503 Paper Products 1,500,000 Nadro, Series L 6,465 Pharmaceutical Distributor 380,000 Bufete Industrial 6,318 Engineering & Construction 930,000 Grupo Industrial Bimbo 4,255 Bread, Baked Goods & Snacks 400,000 Grupo Radio Centro 3,350 Radio Stations & Networks 5,500,000 Grupo Herdez, Series B 1,561 Sauces & Condiments 600,000 GBM Atlantico 1,425 Bank & Brokerage 1,500,000 Fondo Opcion, Series B 1,283 Real Estate Investment Fund 3,000,000 Grupo Fernandez Editores 740 Textbook Publisher 107,000 Cofar 85 Drug Stores - ---------------------------------------------------------------------------- 35,985 .Brazil: 1.4% 28,000,000 Banco Itau Pfd. 9,950 Bank 160,000,000 Cemig Pfd. 4,487 Electric Utility 35,000,000 Telemig Pfd. 2,764 30,000,000 Telemig 2,157 Telecommunications 1,000,000 Brazilian Smaller Companies Warrants 715 Closed-End Fund - ---------------------------------------------------------------------------- 20,073 .Argentina: 1.1% 280,000 IRSA 7,875 Real Estate Management & Development 300,000 Quilmes Industrial 3,600 150,000 Quilmes Industrial Pfd. 1,612 Beverages 1,200,000 Cresud 2,341 Agriculture
25 Acorn International .Statement of Investments (unaudited)
Principal Amount or Number of Shares Value (000) - ---------------------------------------------------------------------------- 229,500 Cerveceria Biekert $ 471 Brewer - ---------------------------------------------------------------------------- 15,899 .Chile: 1.0% 240,000 Santa Isabel 6,090 Retail 150,000 Genesis Chile Fund 5,775 Closed-End Fund 150,000 Banco De A Edwards 3,150 Bank - ---------------------------------------------------------------------------- 15,015 .Peru: 0.9% 310,000 Credicorp 5,580 Universal Bank 2,200,000 Banco Wiese 3,907 Bank 2,000,000 Enrique Ferreyros 2,506 Heavy Machinery Dealer $1,252 Tele 2000, 9.75% Cv. Note 4/5/97 1,171 Telecommunications and Cable TV - ---------------------------------------------------------------------------- 13,164 .Other Latin America: 1.6% 150,000 Banco Latinoamericano de Exportaciones 7,406 Trade Financing (Panama) 170,000 Panamerican Beverages 6,864 Coca-Cola Bottler (Panama) 105,000 Compania Boliviana de Energia Electrica 3,859 Electric Utility (Bolivia) 75,000 Ceteco Holdings 3,109 White Goods Retail 400,000 Banco de Bogota 2,084 Bank (Colombia) 450,000 Global Casinos Cv. Pfd. 274 225,000 Global Casinos 77 Worldwide Casino Operator (Aruba) - ---------------------------------------------------------------------------- 23,673 ---------- Latin America: Total 123,809 - ---------------------------------------------------------------------------- Other Countries: 6.7% .Australia/New Zealand: 3.6% 4,000,000 Village Roadshow Pfd. 13,143 Film Distribution, Exhibition & Production 1,900,000 Publishing & Broadcasting 8,324 Media & TV Broadcasting 1,750,000 Sky City 7,330 Casino & Hotel (New Zealand) 2,500,000 Petroleum Securities Australia 6,454 Oil Exploration & Mining 3,760,000 Austereo 5,677 Media-Radio 12,000,000 Command Petroleum Holdings 4,224 Oil & Gas Exploration 2,700,000 Burswood Property Trust 3,612 Perth Casino & Resort 560,000 PDL Holdings 3,051 Electrical Equipment Manufacturer & Distributor (New Zealand) - ---------------------------------------------------------------------------- 51,815 .Canada: 2.3% 1,000,000 Shaw Communications 6,881 Cable TV 800,000 Ranger Oil 5,600 Oil & Gas Producer 600,000 Veritas Energy Services 4,624 Geophysical Contractor 435,000 Shaw Industries 4,549 Pipe Inspection & Coating 700,000 Pan East Petroleum Warrants 2,826 330,000 Pan East Petroleum 1,332 Oil & Gas Producer 300,000 Tesco 2,367 Oil Drilling Equipment 500,000 Cogeco 2,294 Cable TV 300,000 Cogeco Cable 1,816 Cable TV 250,000 Fundy Cable 1,239 Cable TV - ---------------------------------------------------------------------------- 33,528 .Israel: 0.5% 200,000 Pec Israel Economic 4,300 Industrial Holdings 260,000 Ampal American Israel 1,495 Hotels, Real Estate & Industrial Holdings 560,000 Alliance Tire 1,412 Off-the-Road Tires - ---------------------------------------------------------------------------- 7,207 .South Africa: 0.3% 460,000 Kersaf Investments 5,261 Casino Resorts ---------- Other: Total 97,811
26
Number of Shares Value (000) - ---------------------------------------------------------------------------- - ---------------------------------------------------------------------------- Foreign Corporations, Operations in the U.S.: 1.0% 550,000 ADT $ 9,694 Alarm Systems & Auto Auctions (Bermuda) 161,000 Carnival 4,428 Cruise Ship Line (Panama) Foreign Corporations, ---------- Operations in the U.S.: Total 14,122 3,076 Miscellaneous Securities: 0.0% 16 Total Common Stocks and Other ---------- Equity-Like Securities: 95.4% $1,386,592 ---------- Money Market Instruments: 4.8% 70,367 ---------- Total Investments: 100.2% 1,456,959 ---------- Cash and Other Assets Less Liabilities: (0.2%) (3,357) ---------- Total Net Assets: 100% $1,453,602 - ----------------------------------------------------------------------------
27 Acorn Fund - ----------------------------- Acorn International .Trustees Irving B. Harris Chairman James H. Lorie Vice Chairman Leo A. Guthart Jerome Kahn, Jr. David C. Kleinman Charles P. McQuaid Roger S. Meier Adolph Meyer, Jr. Malcolm N. Smith Ralph Wanger .Officers Ralph Wanger President Charles P. McQuaid Senior Vice President Terence M. Hogan Vice President Leah J. Zell Vice President Merrillyn J. Kosier Vice President and Secretary Bruce H. Lauer Vice President and Treasurer Kenneth A. Kalina Assistant Treasurer .Transfer Agent, Dividend Disbursing Agent and Custodian State Street Bank and Trust Company Attention: Acorn Funds P.O. Box 8502 Boston, Massachusetts 02266-8502 1-800-962-1585 .Investment Advisor Wanger Asset Management, L.P. 227 West Monroe Street, Suite 3000 Chicago, Illinois 60606 1-800-9-ACORN-9 (1-800-922-6769) e-mail: wanger@mcs.com .Distributor WAM Brokerage Services, L.L.C. 227 West Monroe Street, Suite 3000 Chicago, Illinois 60606 1-312-634-9200 .Legal Counsel Bell, Boyd & Lloyd Chicago, Illinois This report, including the unaudited schedule of investments, is submitted for the general information of the shareholders of Acorn Investment Trust. This report is not authorized for distribution unless preceded or accompanied by a prospectus. 28 Acorn Fund - ----------------------------------- Acorn International -----END PRIVACY-ENHANCED MESSAGE-----