N-Q 1 e1008.htm

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, DC 20549

FORM N-Q

QUARTERLY SCHEDULE OF PORTFOLIO HOLDINGS OF REGISTERED
MANAGEMENT INVESTMENT COMPANY

Investment Company Act file number 811-04665

Commonwealth International Series Trust
(Exact name of registrant as specified in charter)

5847 San Felipe
Suite 850
Houston, TX 77057
(Address of principal executive offices)

Citi Fund Services Ohio, Inc.
3435 Stelzer Road
Columbus, OH 43219
(Name and address of agent for service)

Registrant’s telephone number, including area code:     888-345-1898  

Date of fiscal year end:   October 31  

Date of reporting period:   July 31, 2009  


Item 1. Schedule of Investments.

COMMONWEALTH INTERNATIONAL SERIES TRUST
COMMONWEALTH AUSTRALIA/NEW ZEALAND FUND
 
SCHEDULE OF INVESTMENTS - JULY 31, 2009 (Unaudited)
        Shares     Value  
AUSTRALIA (20.87%)                  
                 
COMMON STOCKS (16.37%)                
                 
APPAREL (1.05%)                
Billabong International, Ltd. (a)     33,720     $ 259,005  
 
BANKING & FINANCE (0.17%)                
Suncorp-Metway, Ltd. (a)     7,304       43,278  
 
BUILDING MATERIALS (0.43%)                
James Hardie Industries NV – ADR*     5,200       106,080  
 
CHEMICALS - DIVERSIFIED (1.12%)                
Nufarm, Ltd. (a)     30,645       277,092  
 
E-COMMERCE (0.29%)                
Webjet, Ltd. (a)     71,081       70,677  
 
ENERGY (0.31%)                
Woodside Petroleum, Ltd. (a)     2,000       76,283  
 
FOOD & BEVERAGE (1.94%)                
Woolworths, Ltd. (a)     20,998       480,755  
 
HEALTHCARE (1.01%)                
Sonic Healthcare, Ltd. (a)     25,628       250,456  
 
INSURANCE (2.06%)                
QBE Insurance Group, Ltd. (a)     31,220       508,220  
 
MEDICAL SUPPLIES (0.75%)                
Cochlear, Ltd. (a)     4,000       185,631  
 
MINING (4.19%)                
BHP Billiton, Ltd. - ADR     5,000       314,800  
OZ Minerals, Ltd. (a)     308,661       294,209  
Pan Australian Resources, Ltd. (a)*     1,250,000       426,454  
              1,035,463  
PHARMACEUTICALS (0.52%)                
CSL, Ltd. (a)     5,000       127,613  
 
TRANSPORTATION (1.10%)                
Asciano Group (a)     50,000       66,713  
Toll Holdings, Ltd. (a)     36,153       205,637  
              272,350  
UTILITIES (1.43%)                
AGL Energy, Ltd. (a)     28,355       354,162  

TOTAL COMMON STOCKS (Cost $3,262,125)

             4,047,065  

For additional information regarding the Fund’s valuation of investments and other significant accounting policies, please refer to the most recent audited annual or semi-annual report.


COMMONWEALTH INTERNATIONAL SERIES TRUST
COMMONWEALTH AUSTRALIA/NEW ZEALAND FUND
 
SCHEDULE OF INVESTMENTS - JULY 31, 2009 (Unaudited)
    Principal     Value  
AUSTRALIA (20.87%) — Continued                  
                 
BONDS (4.50%)                
CBA Capital Australia, Ltd., 3.82%, 4/15/15 (b)**   $ 300,000     $ 171,962  
Commonwealth Bank of Australia, 8.50%, 6/1/10     300,000       312,221  
Hanson Australia Funding, Ltd., 5.25%, 3/15/13     250,000       207,500  
Telstra Corp., Ltd., 6.38%, 4/1/12     400,000       419,588  

TOTAL BONDS (Cost $1,174,215)

             1,111,271  

TOTAL AUSTRALIA (Cost $4,436,340)

             5,158,336  
      Shares          
NEW ZEALAND (67.06%)                    
                 
COMMON STOCKS (58.69%)                
                 
AGRICULTURE (0.28%)                
Allied Farmers, Ltd. (a)*     277,987       69,901  
 
APPLIANCES (1.32%)                
Fisher & Paykel Appliances Holdings, Ltd. (a)     200,000       115,023  
Scott Technology, Ltd.*     295,245       211,057  
              326,080  
BANKING & FINANCE (4.04%)                
Canterbury Building Society*     308,932       623,671  
Tower, Ltd. (a)     324,913       373,945  
              997,616  
BUILDING MATERIALS (0.58%)                
Fletcher Building, Ltd. (a)     30,000       142,477  
 
COMMERCIAL SERVICES (6.13%)                
Guinness Peat Group Plc (a)     589,300       296,113  
Mowbray Collectables, Ltd. (c)*     671,593       466,755  
Opus International Consultants, Ltd. (a)     200,000       166,799  
Taylors Group, Ltd.     519,431       584,480  
              1,514,147  
COMPUTER SERVICE (0.59%)                
Renaissance Corp., Ltd. (a)     728,329       144,639  
 
ENERGY (2.06%)                
Contact Energy, Ltd. (a)     50,971       212,413  
Pike River Coal Co., Ltd. (a)*     389,746       296,298  
              508,711  
FOOD & BEVERAGE (0.31%)                
Just Water International, Ltd.     292,802       77,522  
 
HEALTHCARE (3.06%)                
Fisher & Paykel Healthcare Corp., Ltd. (a)     270,695       582,129  
Ryman Healthcare, Ltd. (a)     150,000       173,615  
              755,744  
HUMAN RESOURCES (0.58%)                
Allied Work Force Group, Ltd.     277,500       143,268  
 
LEISURE & RECREATION (0.60%)                
Tourism Holdings, Ltd. (a)     441,009       148,817  

For additional information regarding the Fund’s valuation of investments and other significant accounting policies, please refer to the most recent audited annual or semi-annual report.


COMMONWEALTH INTERNATIONAL SERIES TRUST
COMMONWEALTH AUSTRALIA/NEW ZEALAND FUND
 
SCHEDULE OF INVESTMENTS - JULY 31, 2009 (Unaudited)
      Shares     Value  
NEW ZEALAND (67.06%) — Continued                  
                 
COMMON STOCKS (58.69%) — Continued                
                 
MARINE PORTS & SERVICES (10.58%)                
Cavotec MSL Holdings, Ltd.*     190,000     $ 377,284  
Port of Tauranga, Ltd. (a)     175,000       733,996  
South Port of New Zealand, Ltd.     1,027,930       1,503,657  
              2,614,937  
METAL FABRICATE/HARDWARE (3.83%)                
Methven, Ltd. (a)     506,250       468,812  
Steel & Tube Holdings, Ltd. (a)     229,494       477,409  
              946,221  
MISCELLANEOUS MANUFACTURING (1.68%)                
Skellerup Holdings, Ltd. (a)     1,117,130       416,216  
 
MULTI-MEDIA (2.89%)                
Sky Network Television, Ltd. (a)     249,745       714,932  
 
OIL & GAS (3.58%)                
New Zealand Oil & Gas, Ltd. (a)     823,526       883,417  
 
PHARMACEUTICALS (0.27%)                
Life Pharmacy, Ltd.*     278,884       66,454  
 
REAL ESTATE (7.89%)                
Goodman Property Trust (a)     462,405       302,921  
ING Medical Properties Trust (a)     668,852       526,973  
ING Property Trust (a)     924,439       422,395  
Kermadec Property Fund (a)     1,088,477       302,413  
Kiwi Income Property Trust (a)     209,576       137,273  
National Property Trust (a)     975,000       257,905  
              1,949,880  
RETAIL (1.28%)                
Briscoe Group, Ltd.     405,000       316,323  
 
TELECOMMUNICATIONS (1.97%)                
TeamTalk, Ltd.     368,041       487,213  
 
TRANSPORTATION (2.20%)                
Freightways, Ltd. (a)     110,000       226,307  
Mainfreight, Ltd. (a)     105,000       316,070  
              542,377  
UTILITIES (2.97%)                
Infratil, Ltd. (a)     616,549       735,032  
 

TOTAL COMMON STOCKS (Cost $16,661,928)

             14,501,924  
 
EXCHANGE TRADED FUNDS (3.45%)                
iShares MSCI Australia Index Fund     45,000       851,850  

TOTAL EXCHANGE TRADED FUNDS (Cost $740,425)

             851,850  

For additional information regarding the Fund’s valuation of investments and other significant accounting policies, please refer to the most recent audited annual or semi-annual report.


COMMONWEALTH INTERNATIONAL SERIES TRUST
COMMONWEALTH AUSTRALIA/NEW ZEALAND FUND
 
SCHEDULE OF INVESTMENTS - JULY 31, 2009 (Unaudited)
      Shares     Value  
NEW ZEALAND (67.06%) — Continued                  
                 
PREFERRED STOCKS (1.80%)                
ASB Capital, Ltd., 3.86% (a)**     954,218     $ 445,649  

TOTAL PREFERRED STOCKS (Cost $686,799)

             445,649  
 
RIGHTS & WARRANTS (0.24%)                
Pike River Coal, Ltd., Strike Price 1.25, Expiration 4/24/11 (a)     350,000       58,843  

TOTAL RIGHTS & WARRANTS (Cost $0)

             58,843  
    Principal          
BONDS (2.88%)                
ANZ National Bank, Ltd., 8.50%, 6/9/10 (b)   $ 500,000       348,954  
ANZ National Bank, Ltd., 8.50%, 6/9/14 (b)     500,000       362,424  

TOTAL BONDS (Cost $775,890)

             711,378  

TOTAL NEW ZEALAND (Cost $18,865,042)

             16,569,644  
      Shares          
SHORT TERM INVESTMENT (10.19%)                
Fifth Third Bank Institutional Govt. Money Market Fund, 0.19% (d)     2,518,066       2,518,066  

TOTAL SHORT TERM INVESTMENT (Cost $2,518,066)

             2,518,066  
 
TOTAL INVESTMENTS (Cost $25,819,448) (e)(f) – (98.12%)             24,246,046  
 
OTHER ASSETS IN EXCESS OF LIABILITIES – (1.88%)             463,336  
 
NET ASSETS – (100.00%)           $ 24,709,382  

*   Non-income producing security.
**   Rate shown represents the rate at July 31, 2009, is subject to change and resets annually.
(a)   Fair Valued Security. These securities represent 55.75% of the net assets as of July 31, 2009.
(b)   Principal amount shown is in New Zealand Dollars; value shown in U.S. Dollars.
(c)   Affiliated investment. See table of affiliated investment below.
(d)   Rate disclosed is the seven day yield as of July 31, 2009.
(e)   The Fund has categorized its investments in accordance with the Statement of Financial Accounting Standards No. 157 and FASB Staff Position 157-4 (“FSP 157-4”). See attached summary.
(f)   Represents cost for financial reporting purposes. Cost of investments for federal income tax purposes differs from value by net unrealized depreciation of securities as follows:

  Gross unrealized appreciation   $ 3,388,026  
  Gross unrealized depreciation     (5,125,309 )
  Net unrealized depreciation   $ (1,737,283 )

ADR   American Depositary Receipt
Plc   Public Limited Company

                          For the Period                    
                          Ended 7/31/09           For the Period
    Percentage                     Change in           11/1/08-7/31/09
    of     Shares   Shares   Fair Value     Appreciation/     Fair Value   Dividend   Realized
Affiliated Investment   Ownership     10/31/2008   7/31/2009   10/31/2008     Depreciation     7/31/2009   Income   Gain/(Loss)
Mowbray Collectables Ltd.   6.19%     671,593   671,593   $488,585     ($21,830)     $466,755   $ –   $ –

For additional information regarding the Fund’s valuation of investments and other significant accounting policies, please refer to the most recent audited annual or semi-annual report.


COMMONWEALTH INTERNATIONAL SERIES TRUST
COMMONWEALTH JAPAN FUND
 
SCHEDULE OF INVESTMENTS - JULY 31, 2009 (Unaudited)
      Shares     Value  
COMMON STOCKS (88.17%)                
                 
AUTOMOTIVE PARTS & EQUIPMENT (4.05%)                
Daihatsu Motor Co., Ltd.     5,000     $ 56,284  
NGK Spark Plug Co., Ltd.     6,000       66,208  
Sumitomo Rubber Industries, Ltd.     10,000       86,883  
              209,375  
BANKING & FINANCE (2.83%)                
Fukuoka Financial Group, Inc.     10,000       43,864  
Sumitomo Mitsui Financial Group, Inc.     2,400       102,738  
              146,602  
COMPUTERS (1.29%)                
Melco Holdings, Inc.     4,500       66,970  
 
DISTRIBUTION & WHOLESALE (2.68%)                
Marubeni Corp.     30,000       138,569  
 
ELECTRONICS (12.31%)                
Fanuc, Ltd.     1,500       123,190  
Fujitsu, Ltd.     10,000       65,744  
Hamamatsu Photonics K.K.     1,500       29,537  
Hoya Corp.     4,000       96,607  
Nippon Signal Co., Ltd.     6,000       55,808  
Star Micronics Co., Ltd.     5,000       50,893  
Taiyo Yuden Co., Ltd.     10,000       136,878  
TOYO Corp.     8,000       77,962  
              636,619  
ENGINEERING & CONSTRUCTION (1.55%)                
Kajima Corp.     18,000       50,798  
Taihei Dengyo Kaisha, Ltd.     3,000       29,585  
              80,383  
FOOD & BEVERAGE (1.45%)                
Kirin Brewery Co., Ltd.     5,000       74,834  
 
HEALTHCARE-PRODUCTS (5.35%)                
Asahi Intecc Co., Ltd.     4,000       43,124  
Terumo Corp.     3,000       152,521  
Unicharm Corp.     1,000       80,964  
              276,609  
INSURANCE (5.42%)                
Aflac, Inc.     3,000       113,580  
T & D Holdings, Inc.     2,000       58,768  
Tokio Marine Holdings, Inc. - ADR     3,750       108,187  
              280,535  
LEISURE & RECREATION (6.54%)                
Nintendo Co., Ltd.     700       189,335  
Sankyo Co., Ltd.     2,500       149,033  
              338,368  
MACHINERY (3.63%)                
Meidensha Corp.     18,000       107,874  
Okano Valve Mfg. Co.     5,000       43,600  
Torishima Pump Mfg. Co., Ltd.     2,500       36,043  
              187,517  

For additional information regarding the Fund’s valuation of investments and other significant accounting policies, please refer to the most recent audited annual or semi-annual report.


COMMONWEALTH INTERNATIONAL SERIES TRUST
COMMONWEALTH JAPAN FUND
 
SCHEDULE OF INVESTMENTS - JULY 31, 2009 (Unaudited)
      Shares     Value  
COMMON STOCKS (88.17%) — Continued                
                 
PHARMACEUTICALS (3.87%)                
Chugai Pharmaceutical Co., Ltd.     6,500     $ 119,200  
Takeda Pharmaceutical Co., Ltd.     2,000       80,964  
              200,164  
PRINTING (1.02%)                
Tosho Printing Co., Ltd.     21,000       52,827  
 
REAL ESTATE (3.81%)                
Sumitomo Realty & Development Co., Ltd.     6,000       123,666  
Tokyo Tatemono Co., Ltd.     15,000       73,565  
              197,231  
RETAIL (7.72%)                
ABC-Mart, Inc.     2,000       57,182  
Fast Retailing Co., Ltd.     600       77,941  
Ryohin Keikaku Co., Ltd.     1,200       49,847  
Sundrug Co., Ltd.     4,000       89,420  
Yamada Denki Co., Ltd.     2,000       125,145  
              399,535  
TELECOMMUNICATIONS (2.67%)                
Hitachi Kokusai Electric, Inc.     5,000       36,835  
NTT DoCoMo, Inc. - ADR     7,000       101,080  
              137,915  
TEXTILES (1.67%)                
Ichikawa Co., Ltd.     35,000       86,196  
 
TRANSPORTATION (12.51%)                
East Japan Railway Co.     1,500       86,090  
Hankyu Hanshin Holdings, Inc.     22,000       101,385  
Keihin Electric Express Railway Co., Ltd.     13,000       108,414  
Keio Corp.     18,000       108,065  
Tobu Railway Co., Ltd.     18,000       109,396  
Yamato Holdings Co., Ltd.     9,000       133,844  
              647,194  
UTILITIES (7.80%)                
Hokkaido Electric Power Co., Inc.     6,000       116,626  
Toho Gas Co., Ltd.     35,000       140,947  
Tohoku Electric Power Co., Inc.     7,000       145,830  
              403,403  

TOTAL COMMON STOCKS (Cost $3,864,729)

             4,560,846  
 
EXCHANGE TRADED FUNDS (4.77%)                
iShares MSCI Japan Index Fund     25,000       246,750  

TOTAL EXCHANGE TRADED FUNDS (Cost $232,202)

             246,750  
    Principal          
BONDS (0.96%)                
Bank of Tokyo-Mitsubishi UFJ, Ltd., 8.40%, 4/15/10   $ 48,000       49,401  

TOTAL BONDS (Cost $49,215)

             49,401  

For additional information regarding the Fund’s valuation of investments and other significant accounting policies, please refer to the most recent audited annual or semi-annual report.


COMMONWEALTH INTERNATIONAL SERIES TRUST
COMMONWEALTH JAPAN FUND
 
SCHEDULE OF INVESTMENTS - JULY 31, 2009 (Unaudited)
      Shares     Value  
SHORT TERM INVESTMENT (3.72%)                
Fifth Third Bank Institutional Govt. Money Market Fund, 0.19% (a)     192,349     $ 192,349  

TOTAL SHORT TERM INVESTMENT (Cost $192,349)

             192,349  
                 
TOTAL INVESTMENTS (Cost $4,338,495) (b)(c) – ( 97.62%)             5,049,346  
                 
OTHER ASSETS IN EXCESS OF LIABILITIES – (2.38%)             122,854  
 
NET ASSETS – (100.00%)           $ 5,172,200  

(a)   Rate disclosed is the seven day yield as of July 31, 2009.
(b)   The Fund has categorized its investments in accordance with the Statement of Financial Accounting Standards No. 157 and FASB Staff Position 157-4 (“FSP 157-4”). See attached summary.
(c)   Represents cost for financial reporting purposes. Cost of investments for federal income tax purposes differs from value by net unrealized appreciation of securities as follows:

  Gross unrealized appreciation   $ 1,062,391  
  Gross unrealized depreciation     (351,540 )
  Net unrealized appreciation   $ 710,851  

ADR   American Depositary Receipt

For additional information regarding the Fund’s valuation of investments and other significant accounting policies, please refer to the most recent audited annual or semi-annual report.


COMMONWEALTH INTERNATIONAL SERIES TRUST
COMMONWEALTH GLOBAL FUND
 
SCHEDULE OF INVESTMENTS - JULY 31, 2009 (Unaudited)
    Shares   Value
COMMON STOCKS (91.71%)          
           
BRAZIL (2.35%)          
Cia de Saneamento Basico do Estado de Sao Paulo - ADR   5,000   $ 168,550
Vale SA - ADR   10,000     197,300
          365,850
CANADA (3.83%)          
InterOil Corp.*   15,000     424,500
Vitran Corp., Inc.*   16,000     172,800
          597,300
FRANCE (6.83%)          
Arkema - ADR   6,130     175,931
BNP Paribas - ADR   6,000     218,400
France Telecom SA - ADR   15,000     381,450
Total SA - ADR   5,200     289,380
          1,065,161
GERMANY (4.98%)          
E.ON AG - ADR   8,000     302,160
SAP AG - ADR   5,000     236,250
Siemens AG - ADR   3,000     238,440
          776,850
GREAT BRITAIN (10.48%)          
Anglo American Plc - ADR   11,830     190,700
British Airways Plc - ADR*   3,800     92,302
GlaxoSmithKline Plc - ADR   8,000     306,320
InterContinental Hotels Group Plc - ADR   19,003     215,114
Lloyds TSB Group Plc - ADR   7,175     40,682
National Grid Plc - ADR   3,071     143,784
Old Mutual Plc - ADR   30,000     385,500
Tate & Lyle Plc - ADR   4,000     97,800
Vodafone Group Plc - ADR   7,875     162,068
          1,634,270
GUERNSEY (1.23%)          
Amdocs, Ltd.*   8,000     191,360
           
ISRAEL (4.56%)          
NICE Systems, Ltd. - ADR*   10,000     273,800
Teva Pharmaceutical Industries, Ltd. - ADR   8,198     437,281
          711,081
JAPAN (1.04%)          
Nidec Corp. - ADR   9,000     161,550
           
MEXICO (1.74%)          
Grupo Televisa SA - ADR   15,000     271,350
           
NETHERLANDS (2.72%)          
ING Groep NV - ADR   13,842     179,115
Unilever NV - NYS   9,000     244,800
          423,915
PORTUGAL (1.34%)          
Portugal Telecom SGPS SA - ADR   20,300     208,075

For additional information regarding the Fund’s valuation of investments and other significant accounting policies, please refer to the most recent audited annual or semi-annual report.


COMMONWEALTH INTERNATIONAL SERIES TRUST
COMMONWEALTH GLOBAL FUND
 
SCHEDULE OF INVESTMENTS - JULY 31, 2009 (Unaudited)
    Shares   Value
COMMON STOCKS (91.71%) — Continued          
           
SOUTH KOREA (1.67%)          
Korea Electric Power Corp. - ADR*   8,000   $ 106,960
KT Corp. - ADR   9,500     152,570
          259,530
SPAIN (3.42%)          
Banco Bilbao Vizcaya Argentaria SA - ADR   17,497     287,651
Banco Santander Central Hispano SA - ADR   17,000     245,820
          533,471
SWITZERLAND (2.04%)          
Nestle SA - ADR   7,750     318,370
 
UNITED STATES (43.48%)          
AGCO Corp.*   12,000     377,520
American Equity Investment Life Holding Co.   20,000     144,800
American National Insurance Co.   4,498     355,567
Aqua America, Inc.   7,000     126,420
BJ’s Wholesale Club, Inc.*   5,075     169,251
Bunge, Ltd.   6,500     454,805
Chemed Corp.   5,200     229,320
Conmed Corp.*   15,720     276,358
Dentsply International, Inc.   6,700     223,445
DST Systems, Inc.*   7,385     327,377
Electronic Arts, Inc.*   10,000     214,700
KVH Industries, Inc.*   36,000     292,680
LifePoint Hospitals, Inc.*   15,000     414,900
Lubrizol Corp.   8,055     466,626
Lufkin Industries, Inc.   10,000     454,000
MetroCorp Bancshares, Inc.   4,000     15,520
National-Oilwell Varco, Inc.*   7,266     261,140
Norfolk Southern Corp.   9,000     389,250
Northwest Natural Gas Co.   6,000     267,840
Pentair, Inc.   12,760     348,603
Prudential Financial, Inc.   5,000     221,350
Smith International, Inc.   4,490     112,834
Tetra Tech, Inc.*   4,000     120,480
Varian Semiconductor Equipment Associates, Inc.*   16,000     512,640
          6,777,426

TOTAL COMMON STOCKS (Cost $13,541,648)

         14,295,559
 
PREFERRED STOCKS (3.32%)          
Chesapeake Energy Corp., 4.50%, 12/31/49**   1,000     68,370
HSBC USA, Inc., Series F, 3.50%, Callable 4/7/10 @ $25 (a)   18,000     284,400
HSBC USA, Inc., Series G, 4.00%, Callable 1/1/11 @ $25 (a)   10,000     165,000

TOTAL PREFERRED STOCKS (Cost $561,255)

         517,770

For additional information regarding the Fund’s valuation of investments and other significant accounting policies, please refer to the most recent audited annual or semi-annual report.


COMMONWEALTH INTERNATIONAL SERIES TRUST
COMMONWEALTH GLOBAL FUND
 
SCHEDULE OF INVESTMENTS - JULY 31, 2009 (Unaudited)
    Principal   Value  
BONDS (3.16%)              
EnCana Corp., 4.60%, 8/15/09   $ 135,000   $ 135,169  
JP Morgan Chase & Co., 0.00%, 2/10/11 ***     150,000     168,855  
Toyota Motor Credit Corp., Step-up Bond, 4.25%, 2/4/25 (a)     200,000     187,791  

TOTAL BONDS (Cost $482,907)

           491,815  
    Shares        
SHORT TERM INVESTMENT (2.37%)              
Fifth Third Bank Institutional Govt. Money Market Fund, 0.19% (b)     370,084     370,084  

TOTAL SHORT TERM INVESTMENT (Cost $370,084)

           370,084  
 
TOTAL INVESTMENTS (Cost $14,955,894) (c)(d) – (100.56%)           15,675,228  
 
LIABILITIES IN EXCESS OF OTHER ASSETS – (-0.56%)           (87,765 )
 
NET ASSETS – (100.00%)         $ 15,587,463  

*   Non-income producing security.
**   Convertible to common shares.
***  

Principal Protected Notes due February 10, 2011 are debt securities of JPMorgan Chase & Co., Inc. The principal amount is $1,000 and the notes have no periodic interest payments. At maturity, the holder is entitled to receive the principal amount of $1,000, plus a supplemental redemption amount of $1,000 X (Ending Index Value - Starting Index Value)/Starting Index Value.
(a)  

Variable Rate Security. This rate reflected in the Schedule of Investments is the rate in effect at July 31, 2009.
(b)   Rate disclosed is the seven day yield as of July 31, 2009.
(c)   The Fund has categorized its investments in accordance with the Statement of Financial Accounting Standards No. 157 and FASB Staff Position 157-4 (“FSP 157-4”). See attached summary.
(d)   Represents cost for financial reporting purposes. Cost of investments for federal income tax purposes differs from value by net unrealized appreciation of securities as follows:

  Gross unrealized appreciation   $ 2,528,185  
  Gross unrealized depreciation     (1,831,416 )
  Net unrealized appreciation   $ 696,769  

ADR   American Depositary Receipt
NYS   New York Share
Plc   Public Limited Company

For additional information regarding the Fund’s valuation of investments and other significant accounting policies, please refer to the most recent audited annual or semi-annual report.


COMMONWEALTH INTERNATIONAL SERIES TRUST
COMMONWEALTH REAL ESTATE SECURITIES FUND
 
SCHEDULE OF INVESTMENTS - JULY 31, 2009 (Unaudited)
    Shares   Value
COMMON STOCKS (73.09%)          
           
BUILDING MATERIALS (9.23%)          
Cemex SA de CV - ADR*   12,480   $ 117,187
CRH Plc - ADR   9,200     227,516
James Hardie Industries NV - ADR*   6,900     140,760
Lafarge SA - ADR   5,000     90,250
Universal Forest Products, Inc. (a)   3,000     133,920
USG Corp.*   7,000     98,980
          808,613
DISTRIBUTION & WHOLESALE (0.21%)          
Wolseley Plc - ADR   8,000     18,160
           
HOMEBUILDERS (4.73%)          
Desarrolladora Homex SA de CV – ADR (a)*   9,000     317,070
Toll Brothers, Inc.*   5,000     97,800
          414,870
INSURANCE (2.63%)          
First American Corp. (a)   5,000     147,750
Stewart Information Services Corp.   6,000     82,620
          230,370
LODGING (4.30%)          
Marriott International, Inc., Class A   5,000     107,700
Starwood Hotels & Resorts Worldwide, Inc. (a)   5,500     129,855
Wyndham Worldwide Corp. (a)   10,000     139,500
          377,055
REAL ESTATE (6.60%)          
Alto Palermo SA - ADR   17,000     110,330
Hang Lung Properties, Ltd. - ADR   18,000     332,460
W.P. Carey & Co., LLC   5,000     135,750
          578,540
REAL ESTATE INVESTMENT TRUSTS - APARTMENTS (7.91%)          
American Campus Communities, Inc.   1,100     25,223
AvalonBay Communities, Inc.   1,547     90,036
Camden Property Trust   5,000     147,550
Education Realty Trust, Inc.   9,000     43,650
Equity Residential   6,000     144,000
Essex Property Trust, Inc. (a)   1,000     65,010
Mid-America Apartment Communities, Inc. (a)   2,500     99,175
UDR, Inc.   7,565     79,054
          693,698
REAL ESTATE INVESTMENT TRUSTS - DIVERSIFIED (6.10%)          
Digital Realty Trust, Inc. (a)   3,000     121,650
National Retail Properties, Inc.   4,000     78,840
PS Business Parks, Inc. (a)   3,500     180,985
Washington Real Estate Investment Trust   6,000     153,540
          535,015
REAL ESTATE INVESTMENT TRUSTS - HEALTH CARE (2.59%)          
Health Care REIT, Inc.   2,500     100,150
Senior Housing Properties Trust (a)   6,800     126,888
          227,038

For additional information regarding the Fund’s valuation of investments and other significant accounting policies, please refer to the most recent audited annual or semi-annual report.


COMMONWEALTH INTERNATIONAL SERIES TRUST
COMMONWEALTH REAL ESTATE SECURITIES FUND
 
SCHEDULE OF INVESTMENTS - JULY 31, 2009 (Unaudited)

    Shares   Value
COMMON STOCKS (73.09%) — Continued          
           
REAL ESTATE INVESTMENT TRUSTS - HOTELS (3.60%)          
Host Hotels & Resorts, Inc.   15,000   $ 136,200
LaSalle Hotel Properties   12,000     178,920
          315,120
REAL ESTATE INVESTMENT TRUSTS - OFFICE PROPERTY (9.27%)          
Alexandria Real Estate Equities, Inc.   2,500     95,275
BioMed Realty Trust, Inc.   9,000     105,120
Boston Properties, Inc.   2,500     132,250
Corporate Office Properties Trust   4,000     135,640
Douglas Emmett, Inc.   6,000     60,960
HRPT Properties Trust   10,100     48,682
SL Green Realty Corp.   3,000     77,340
Vornado Realty Trust   3,083     157,295
          812,562
REAL ESTATE INVESTMENT TRUSTS - SHOPPING CENTERS (3.79%)          
Acadia Realty Trust   4,985     68,294
Kimco Realty Corp.   4,000     39,360
Kite Realty Group Trust   10,000     32,000
Saul Centers, Inc.   4,100     138,867
Weingarten Realty Investors   3,450     53,234
          331,755
REAL ESTATE INVESTMENT TRUSTS - STORAGE (4.81%)          
Extra Space Storage, Inc.   15,000     131,700
Public Storage, Inc. (a)   4,000     290,280
          421,980
REAL ESTATE INVESTMENT TRUSTS - WAREHOUSE & INDUSTRIAL (2.53%)          
AMB Property Corp.   3,500     69,335
EastGroup Properties, Inc.   3,000     104,160
ProLogis   5,500     48,345
          221,840
RETAIL BUILDING PRODUCTS (4.79%)          
Home Depot, Inc. (a)   6,000     155,640
Kingfisher Plc- ADR   12,000     84,600
Lowe’s Cos., Inc. (a)   8,000     179,680
          419,920

TOTAL COMMON STOCKS (Cost $8,591,068)

         6,406,536
 
EXCHANGE TRADED FUNDS (4.38%)          
iShares Cohen & Steers Realty Majors Index Fund   3,000     119,070
iShares Dow Jones U.S. Real Estate Index Fund   3,200     114,784
SPDR Dow Jones Wilshire International REIT   2,500     78,875
SPDR Dow Jones Wilshire REIT   1,900     71,269

TOTAL EXCHANGE TRADED FUNDS (Cost $505,163)

         383,998
 
INVESTMENT COMPANIES (1.52%)          
DWS RREEF Real Estate Fund, Inc.   9,000     20,610
LMP Real Estate Income Fund, Inc.   16,000     112,640

TOTAL INVESTMENT COMPANIES (Cost $460,523)

         133,250

For additional information regarding the Fund’s valuation of investments and other significant accounting policies, please refer to the most recent audited annual or semi-annual report.


COMMONWEALTH INTERNATIONAL SERIES TRUST
COMMONWEALTH REAL ESTATE SECURITIES FUND
 
SCHEDULE OF INVESTMENTS - JULY 31, 2009 (Unaudited)
    Principal   Value  
BONDS (6.13%)              
Centex Corp., 4.55%, 11/1/10   $ 150,000   $ 147,750  
Hanson Australia Funding, Ltd., 5.25%, 3/15/13     250,000     207,500  
Hilton Hotels Corp., 7.20%, 12/15/09     200,000     181,890  

TOTAL BONDS (Cost $600,357)

           537,140  
    Shares        
SHORT TERM INVESTMENT (20.47%)              
Fifth Third Bank Institutional Govt. Money Market Fund, 0.19% (b)     1,793,709     1,793,709  

TOTAL SHORT TERM INVESTMENT (Cost $1,793,709)

           1,793,709  
 
TOTAL INVESTMENTS (Cost $11,950,820) (c)(d) – (105.59%)           9,254,633  
 
TOTAL CALL OPTIONS WRITTEN (Proceeds $202,519) – (-3.61%)           (316,605 )
 
LIABILITIES IN EXCESS OF OTHER ASSETS – (-1.98%)           (173,911 )
 
NET ASSETS – (100.00%)         $ 8,764,117  

For additional information regarding the Fund’s valuation of investments and other significant accounting policies, please refer to the most recent audited annual or semi-annual report.


COMMONWEALTH INTERNATIONAL SERIES TRUST
COMMONWEALTH REAL ESTATE SECURITIES FUND
 
SCHEDULE OF INVESTMENTS - JULY 31, 2009 (Unaudited)
    Expiration Date,                
    Exercise Price   Contracts (†)   Value  
CALL OPTIONS WRITTEN (-3.61%)                              
Desarrolladora Homex SA de CV     9/19/09,   $ 22.5       45     $ (58,950 )
Digital Realty Trust, Inc.     10/17/09,     40.0       30       (9,750 )
Essex Property Trust, Inc.     1/16/10,     80.0       10       (2,125 )
First American Corp.     10/17/09,     30.0       50       (8,400 )
Home Depot, Inc.     11/21/09,     25.0       60       (14,100 )
Lowe’s Cos., Inc.     10/17/09,     20.0       80       (25,600 )
Mid-America Apartment Communities, Inc.     1/16/10,     40.0       25       (10,125 )
PS Business Parks, Inc.     10/17/09,     45.0       35       (28,000 )
Public Storage, Inc.     9/19/09,     75.0       40       (10,000 )
Senior Housing Properties Trust     9/19/09,     17.5       68       (10,880 )
Starwood Hotels & Resorts Worldwide, Inc.     11/21/09,     20.0       55       (27,225 )
Universal Forest Products, Inc.     10/17/09,     30.0       30       (45,450 )
Wyndham Worldwide Corp.     11/21/09,     7.5       100       (66,000 )

TOTAL CALL OPTIONS WRITTEN (Proceeds $202,519)

                   628     $ (316,605 )

*   Non-income producing security.
†   Each contract is equivalent to 100 shares.
(a)   Security held as collateral for call options written, aggregating a total market value of $2,087,403.
(b)   Rate disclosed is the seven day yield as of July 31, 2009.
(c)   The Fund has categorized its investments in accordance with the Statement of Financial Accounting Standards No. 157 and FASB Staff Position 157-4 (“FSP 157-4”). See attached summary.
(d)   Represents cost for financial reporting purposes. Cost of investments for federal income tax purposes differs from value by net unrealized depreciation of securities as follows:

  Gross unrealized appreciation   $ 617,400  
  Gross unrealized depreciation     (3,313,677 )
  Net unrealized depreciation   $ (2,696,277 )

ADR   American Depositary Receipt
Plc   Public Limited Company

For additional information regarding the Fund’s valuation of investments and other significant accounting policies, please refer to the most recent audited annual or semi-annual report.


Statement of Financial Accounting Standards No. 157

Various “inputs” are used to determine the value of the Funds’ investments. These inputs are summarized in the three broad levels listed below:

  •   Level 1 – quoted prices in active markets for identical assets.
  •   Level 2 – other significant inputs (including quoted prices of similar securities, interest rates, prepayment speeds, credit risk, etc.).
  •   Level 3 – significant unobservable inputs (which may include the Funds’ own assumptions in determining the fair value of investments).

The inputs or methodology used to value securities are not necessarily an indication of the risk associated with investing in those securities.

The following is a summary categorization of each Fund’s investments based on the level of inputs used in determining the value of such investments as of July 31, 2009:

                  Level 2 –              
    Level 1 –       Other Significant              
    Quoted Prices(1)       Observable Inputs(1)       Total  
   
     
     
 
      Investment   Other Financial       Investment       Investment   Other Financial  
Fund Name     Securities($)      Instruments($)*       Securities($)       Securities($)   Instruments($)*  
   
    
        
        
    
 
Australia/New Zealand Fund     8,648,480   -       15,597,566       24,246,046   -  
Japan Fund     4,999,945   -       49,401       5,049,346   -  
Global Fund     15,183,413   -       491,815       15,675,228   -  
Real Estate Securities Fund     8,717,493   (316,605 )     537,140       9,254,633   (316,605 )

(1)  

In accordance with the provisions of FSP 157-4, the amounts disclosed in Level 1 are equity securities, exchange traded funds, investment companies, and short term investments; the amounts disclosed in Level 2 are bonds, fair-valued equity securities, and rights and warrants. Refer to the Schedule of Investments for the breakout of each security by industry type.
     
*   Other financial instruments include any derivative instruments not reflected in the Schedule of Investments, such as options written.


Item 2. Controls and Procedures.

(a) The registrant’s principal executive officer and principal financial officer have concluded, based on their evaluation of the registrant’s disclosure controls and procedures as conducted within 90 days of the filing date of this report, that these disclosure controls and procedures are adequately designed and are operating effectively to ensure that information required to be disclosed by the registrant on Form N-Q is recorded, processed, summarized and reported within the time periods specified in the Securities and Exchange Commission’s rules and forms.

(b) There were no changes in the registrant’s internal control over financial reporting (as defined in Rule 30a-3(d) under the under the Act (17 CFR 270.30a-3(d)) that occurred during the registrant’s most recent fiscal quarter that have materially affected, or are reasonably likely to materially affect, the registrant’s internal control over financial reporting.

Item 3. Exhibits.

Certifications pursuant to Rule 30a-2(a) are attached hereto.

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

(Registrant)   Commonwealth International Series Trust  

By:   /s/ Robert W. Scharar  
    Robert W. Scharar, President
         
Date:   September 28, 2009    

Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated.

By:   /s/ Robert W. Scharar  
    Robert W. Scharar, President
         
Date:   September 28, 2009    
         
By:   /s/ Robert W. Silva    
    Robert W. Silva, Treasurer
         
Date:   September 28, 2009