-----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, I2hz0Vy67LdxKS0oO/n5NoYFGUxJEhrkJ9Qom5Yz9GlJAIE2d5b1mli4Q496pCMz CC6Qi0GiPeBJ/QtDprN35Q== 0000950130-97-005333.txt : 19971127 0000950130-97-005333.hdr.sgml : 19971127 ACCESSION NUMBER: 0000950130-97-005333 CONFORMED SUBMISSION TYPE: N-30D PUBLIC DOCUMENT COUNT: 1 CONFORMED PERIOD OF REPORT: 19970930 FILED AS OF DATE: 19971126 SROS: NONE FILER: COMPANY DATA: COMPANY CONFORMED NAME: SOGEN FUNDS INC CENTRAL INDEX KEY: 0000906352 STANDARD INDUSTRIAL CLASSIFICATION: [] STATE OF INCORPORATION: MD FISCAL YEAR END: 0331 FILING VALUES: FORM TYPE: N-30D SEC ACT: SEC FILE NUMBER: 811-07762 FILM NUMBER: 97729425 BUSINESS ADDRESS: STREET 1: 1221 AVENUE OF THE AMERICAS CITY: NEW YORK STATE: NY ZIP: 10020 BUSINESS PHONE: 2122785800 MAIL ADDRESS: STREET 1: 1221 AVENUE OF THE AMERICAS CITY: NEW YORK STATE: NY ZIP: 10020 N-30D 1 SOGEN FUNDS, INC.: SEMI-ANNUAL REPORT SOGEN OVERSEAS FUND SOGEN GOLD FUND SOGEN MONEY FUND ---------------------------------- LOGO ---------------------------------- Semi-Annual Report September 30, 1997 SoGen Funds, Inc. THE PRESIDENT'S LETTER Dear Shareholder: SOGEN OVERSEAS FUND From inception (four years and one month ago) through September 30, 1997, the value of an investment in your Fund increased at a compounded average annual rate of 13.73%. Over the past twelve months, the rate was 16.28%.* As of September 30, 1997 your Fund's net assets, on an economic basis, were invested as follows: Foreign stocks (/1/) 75.1% U.S. dollar bonds 6.9 Foreign currency bonds 2.9 Cash and equivalents 15.1 ----- 100.0% =====
- ----------- (/1/)Includes convertible bonds with moderate premia. The ten major holdings were Buderus AG (German heating products company); Secom Co., Ltd. (Japanese provider of security services and equipment); Bank for International Settlements, U.S. and French Tranches (the central banks' central bank, with some gold assets); The Tokio Marine and Fire Insurance Co., Ltd. (the largest Japanese non-life insurance company); Kuhne & Nagel Interna- tional AG Bearer (Swiss based freight forwarding company); Fuji Photo Film Co., Ltd. (Japanese film and imaging company); Nestle SA Registered (Swiss based multinational food company); Legrand ADP (French low-voltage electrical fit- tings manufacturer); Sika Finanz AG Bearer (Swiss based specialty chemicals producer); and Societe Generale d'Affichage D.R.C. (Swiss billboard advertis- er). Approximately 41% of the foreign stock portfolio was invested in developed countries in Continental Europe, 20% in Japan and 8% in emerging countries in the Pacific Rim. Other relatively large investments (about 4% - 5% each) were in Latin America, Canada, New Zealand, the United Kingdom and emerging markets in Europe. My associates and I continue to look for "values" anywhere in the world out- side the U.S.--not relative values ("this stock is cheaper than the market") because that can be a dangerous game: what if the overall market itself is overvalued? More specifically: . stock prices are high in Europe although there is value among smaller European stocks which have been generally ignored; . in Japan, some stocks are unduly depressed as a result of the long and deep bear market there; . in emerging markets, we are doing work on certain securities in Asia af- ter the recent sharp price declines in that region. As usual, we make some room for fixed income securities, either as substi- tutes for equities (such as emerging market bonds) or as decent values (such as New Zealand Dollar government securities). Finally, cash remains high. We would not hesitate to use up at least some of that reserve if we found genuine values here or there. Being on the side of caution has not helped returns in recent years. With strong equity markets in Europe and in emerging markets (at least until a few months ago), a lack of respect for risk and risk-adjusted returns has devel- oped. Caution is not a temporary feature of our investment approach, but a per- manent one. At some point, risk will get some respect. SOGEN GOLD FUND From inception (four years and one month ago) the value of an investment in your Fund increased at a compounded average annual rate of 1.14%. However, over the past twelve months, the net asset value of your Fund declined 13.87%.* As of September 30, 1997 your Fund's net assets, on an economic basis, were invested as follows: Bank for International Settle- ments (U.S. and French Tranches) 11.1% Freeport McMoRan Copper and Gold (Preferred Series B, C, and D) 17.9 U.S. securities 15.5 Canadian securities 10.9 Australian and New Zealand secu- rities 6.6 South African securities 13.4 Miscellaneous securities 21.2 Cash and equivalents 3.4 ----- 100.0% =====
Our case for gold continues to be a modest one. The downside risk of the metal has been reduced--we believe--by the 50% or so price decline 2 over the past decade and a half, as well as by the strong demand for gold jew- elry in developing countries over the past few years, although that demand may weaken as a result of recent difficulties in Asia. The upside potential is murky. We have no insight into the timing and the extent of any move upwards. The possible drivers would be either an acceleration of inflation in developed countries or a spreading distrust of currencies. SOGEN MONEY FUND Short-term interest rates are still low and may move up if the economy stays strong. However, the recent turmoil in Asia may have a dampening impact on the U.S. economy next year. Sincerely yours, /s/ Jean-Marie Eveillard Jean-Marie Eveillard President November 6, 1997 - ----------- * These figures assume the immediate reinvestment of all dividends and distributions and do not give effect to the deduction of the Fund's sales load. 3 SoGen Funds, Inc. MANAGEMENT'S DISCUSSION OF FUND PERFORMANCE SOGEN OVERSEAS FUND Over the past twelve months ended September 30, 1997, European stock markets advanced sharply in local currency terms. Such performance was attributable to an improving economic outlook in most countries, positive developments for Eu- ropean economic and monetary union ("EMU"), a stronger U.S. dollar and a favor- able interest rate environment. In Asia, Japanese stock performance lagged sig- nificantly, particularly in the six months ended September 30, 1997, as evi- dence of further delays in the long-awaited economic recovery began to surface. Continued concerns over the health of the financial sector also pressured Japa- nese stocks. Price declines were particularly steep for small capitalization stocks while export-oriented, larger capitalization stocks fared better. The Fund added to its Japanese holdings on a selective basis throughout the year. Other Asian markets registered mixed performances: equities in Hong Kong surged ahead of the territory's return to Chinese control in July 1997; elsewhere, in Southeast Asia, where the Fund's investments are minimal, markets weakened sig- nificantly and experienced sharp volatility in the summer as currency devalua- tions and financial turmoil spread throughout the region. Finally, Latin Ameri- can equities rose sharply; however, the Fund's investments in that region are limited. Overall, foreign stocks as a percentage of net assets remained stable over the year ended September 30, 1997, accounting for 75% of the portfolio. Fixed income securities (10% of net assets) generated steady returns; Brady bond holdings were particularly strong performers during the same period. Cash and equivalents rose to 15% of net assets compared to 14% a year ago. During the period, the impact of the rising U.S. dollar on the value of the Fund's assets was minimized since partial foreign currency hedges were in place throughout the year. SOGEN GOLD FUND Over the past twelve months ended September 30, 1997, the price of gold de- clined by approximately 12%, ending the period at $334.45 per ounce. The re- ported selling of gold reserves by central banks--the largest holders of gold bullion--was a key factor in depressing gold prices. The Fund's holdings remain widely diversified across the world. We continue to avoid speculative and over- priced mining stocks, while favoring securities that are considered proxies for the price of gold bullion and the convertible bonds or preferred stocks issued by gold mining companies. 4 SoGen Funds, Inc. SUMMARIES OF FUND DATA The tables below cover the period from August 31, 1993 to September 30, 1997. The results shown should not be considered as a representation of the dividend income or capital gain or loss which may be realized from an invest- ment made in a fund today. The amounts shown in the capital gains distribution and income dividend columns were paid to shareholders during the period ended with the date shown in the first column.
NET ASSET VALUE OF INVESTMENT WITH DIVIDENDS INVESTMENT AND NUMBER NET ASSET CAPITAL GAINS INCOME DISTRIBUTIONS OF SHARES TOTAL NET VALUE DISTRIBUTIONS DIVIDENDS REINVESTED OUTSTANDING ASSETS PER SHARE PER SHARE PER SHARE (CUMULATIVE)* ----------- -------------- --------- ------------- ---------- ------------- SOGEN OVERSEAS FUND August 31, 1993 5,000 $ 50,000 $10.00 -- -- $10.00 (inception) March 31, 1994 10,387,229 119,843,407 11.54 -- -- 11.54 March 31, 1995 37,684,232 439,230,168 11.65 $0.02** $0.05 11.72 March 31, 1996 48,827,734 647,397,659 13.26 0.17+ 0.44 14.00 March 31, 1997 68,870,352 953,314,643 13.84 0.38++ 0.60 15.71 September 30, 1997 (six 75,405,720 1,123,582,700 14.90 -- -- 16.91 months)+++ - ---------------------------------------------------------------------------------------------------- SOGEN GOLD FUND August 31, 1993 3,500 $ 35,000 $10.00 -- -- $10.00 (inception) March 31, 1994 1,961,653 22,406,115 11.42 -- -- 11.42 March 31, 1995 4,515,060 50,921,957 11.28 $0.08** $0.04 11.40 March 31, 1996 5,162,982 63,261,285 12.25 0.27+ 0.35 13.09 March 31, 1997 4,966,414 52,651,226 10.60 0.02++ 0.135 11.49 September 30, 1997 (six 4,865,175 46,996,208 9.66 -- -- 10.48 months)+++
- ---------------------- * The calculation is based on an assumed investment in one share with income dividends and capital gains distributions reinvested in additional shares. (No adjustment has been made for any income taxes payable by shareholders on such dividends and distributions.) ** Comprised entirely of net short-term capital gains. + Includes net short-term capital gains per share in the amounts of $0.07 and $0.14 for SoGen Overseas Fund and SoGen Gold Fund, respectively. ++ Includes net short-term capital gains per share in the amounts of $0.04 and $0.01 for SoGen Overseas Fund and SoGen Gold Fund, respectively. +++ Unaudited. 5 SoGen Overseas Fund SCHEDULE OF INVESTMENTS SEPTEMBER 30, 1997 (UNAUDITED)
NUMBER COST VALUE OF SHARES (NOTE 1) (NOTE 1) --------- -------- -------- COMMON AND PREFERRED STOCKS UNITED KINGDOM AND IRELAND (3.86%) 1,840,454 Antofagasta Holdings plc (21)........... $ 9,372,214 $ 12,241,084 5,285,000 Lonrho plc (21)......................... 11,288,915 9,854,275 1,850,000 McBride plc (12)........................ 5,077,650 5,047,265 1,000,000 Royal Doulton plc (12).................. 4,179,355 3,349,776 700,000 Greencore Group plc (4)................. 1,918,345 3,307,168 3,750,000 Aggregate Industries plc (6)............ 2,094,888 3,269,059 750,000 ED&F Man Group plc (4).................. 1,963,725 2,560,763 675,000 Berisford plc (12)...................... 1,910,883 1,906,951 100,000 Scottish Media Group plc (15)........... 621,771 1,110,673 150,000 RIT Capital Partners plc (22)........... 510,808 697,399 ------------ ------------ 38,938,554 43,344,413 ------------ ------------ FINLAND (0.40%) 55,000 Vaisala Oy A (11)....................... 2,022,905 4,173,385 10,000 Aamulehti Yhtymae Oy II (15)............ 151,826 352,841 ------------ ------------ 2,174,731 4,526,226 ------------ ------------ SWEDEN (2.95%) 335,000 AssiDoman AB (3)........................ 7,318,104 11,461,691 305,000 Tidnings AB Marieberg (15).............. 8,147,000 8,461,030 110,000 Investor AB "B' (20).................... 4,470,033 5,899,604 275,000 IRO AB (7).............................. 2,991,322 4,250,330 300,000 Gorthon Lines AB "B' (9)................ 1,557,476 1,922,061 220,000 Bylock & Nordsjofrakt AB "B' (9)........ 894,708 1,147,952 ------------ ------------ 25,378,643 33,142,668 ------------ ------------ NORWAY (0.68%) 345,000 Schibsted ASA (15)...................... 4,509,315 6,055,459 15,000 Orkla ASA "B' (12)...................... 487,491 1,220,859 10,000 Adelsten ASA "A' (13)................... 149,459 198,168 10,000 Adelsten ASA "B' (13)................... 120,513 169,859 ------------ ------------ 5,266,778 7,644,345 ------------ ------------ DENMARK (0.55%) 80,000 Carlsberg International A/S "B' (12).... 3,670,112 4,410,505 15,000 Kobenhavns Lufthavne A/S (9)............ 662,505 1,754,517 ------------ ------------ 4,332,617 6,165,022 ------------ ------------ NETHERLANDS (1.55%) 95,000 Philips Electronics NV ADR (10)......... 3,194,164 7,980,000 100,000 Apothekers Cooperatie OPG U.A. (14)..... 2,703,065 3,173,484 201,212 European City Estates (19).............. 3,267,199 3,040,681 50,000 Randstad Holding NV (16)................ 567,169 2,060,246
6 SoGen Overseas Fund SCHEDULE OF INVESTMENTS SEPTEMBER 30, 1997 (UNAUDITED)
NUMBER COST VALUE OF SHARES (NOTE 1) (NOTE 1) --------- -------- -------- COMMON AND PREFERRED STOCKS (continued) NETHERLANDS (continued) 35,000 Holdingmaatschappij de Telegraaf NV (15).................................. $ 334,731 $ 740,480 15,000 Content Beheer NV (16)................. 247,014 462,422 ------------ ------------ 10,313,342 17,457,313 ------------ ------------ BELGIUM (0.67%) 33,500 Deceuninck Plastics Industries SA (6).. 5,491,832 6,806,191 1,640 Societe Belge des Betons SA (6)........ 936,380 725,913 ------------ ------------ 6,428,212 7,532,104 ------------ ------------ GERMANY (5.53%) 34,500 Buderus AG (7)......................... 14,733,506 17,617,021 11,750 Axel Springer Verlag AG (15)........... 6,689,684 10,066,667 200,000 Bayer AG (8)........................... 4,575,297 7,977,305 100,000 Hornbach Holding AG Pfd. (13).......... 8,283,312 7,103,546 11,500 Suedzucker AG Pfd. (12)................ 5,214,710 5,813,617 38,500 Bertelsmann AG D.R.C. (15)............. 4,982,892 4,696,454 215,000 Gerresheimer Glas AG (7)............... 3,742,015 2,878,865 85,000 IVG Holding AG (19).................... 2,770,807 2,425,816 25,000 Degussa AG (8)......................... 858,696 1,374,468 4,500 SAP AG Pfd. (11)....................... 122,582 1,208,936 50,000 Deutsche Lufthansa AG (9).............. 584,847 985,816 ------------ ------------ 52,558,348 62,148,511 ------------ ------------ FRANCE (9.98%) 100,000 Legrand ADP (7)........................ 8,618,094 13,768,287 22,500 Eurafrance (20)........................ 9,099,499 9,502,652 40,000 Europe 1 Communication (15)............ 9,008,436 8,818,461 75,000 Marine-Wendel (20)..................... 6,718,510 8,108,930 31,500 Sagem ADP (10)......................... 9,154,158 7,875,798 50,000 Elf Aquitaine (2)...................... 3,705,094 6,689,867 125,000 Eramet (1)............................. 7,368,844 5,638,240 17,710 Promodes C.I. (13)..................... 2,335,940 5,534,936 3,000 Promodes (13).......................... 543,878 1,173,768 62,500 Emin Leydier (3)....................... 4,742,363 4,804,119 22,500 Emin Leydier-REG (3)................... 1,638,595 1,729,483 38,500 Compagnie Generale des Eaux (18)....... 4,493,481 4,539,818 41,983 Compagnie Generale des Eaux Warrants (a)(18)............................... 0 22,696 52,500 Gaumont SA (15)........................ 2,933,903 3,707,301 41,500 Fimalac SA (20)........................ 3,790,933 3,561,510 23,500 NSC Groupe (7)......................... 4,148,665 3,318,917 6,050 Taittinger (12)........................ 2,869,674 3,219,499 10,500 Taittinger C.I. (12)................... 2,722,762 3,121,938 30,000 Rougier SA (3)......................... 2,376,645 1,859,986 10,000 Robertet SA (12)....................... 2,005,215 1,824,509 7,394 Robertet SA C.I. (12).................. 1,064,339 1,045,508 3,000 Societe Sucriere de Pithiviers le Vieil (4)................................... 1,148,828 1,692,232
7 SoGen Overseas Fund SCHEDULE OF INVESTMENTS SEPTEMBER 30, 1997 (UNAUDITED)
NUMBER COST VALUE OF SHARES (NOTE 1) (NOTE 1) --------- -------- -------- COMMON AND PREFERRED STOCKS (continued) FRANCE (continued) 47,638 Societe du Louvre C.I. (19).............................. $ 756,648 $ 1,476,767 18,000 Societe du Louvre (19)................................... 848,964 942,663 25,000 C.G.D.E. Michelin "B' (5)................................ 1,165,824 1,423,286 10,000 Sabeton SA (20).......................................... 1,843,091 1,351,488 25,000 Conflandey (1)........................................... 1,432,135 1,305,031 25,000 Burelle SA (a)(5)........................................ 1,451,968 1,199,446 12,875 Crometal (7)............................................. 852,748 804,769 10,000 La Brosse et Dupont (12)................................. 718,979 743,319 2,500 Elf Gabon (2)............................................ 422,699 582,407 28,000 Teleflex Lionel Dupont (a)(7)............................ 599,556 561,003 5,500 C.E.E. (Continentale d'Equipements Electriques) (a)(7)... 653,923 98,490 20,000 Immobiliere Hoteliere (a)(19)............................ 575,842 84,299 ------------ ------------ 101,810,233 112,131,423 ------------ ------------ SWITZERLAND (7.80%) 21,500 Kuhne & Nagel International AG Bearer (9)................ 12,811,310 15,126,746 10,000 Nestle SA Registered (12)................................ 12,924,986 13,974,823 35,500 Societe Generale d'Affichage D.R.C. (15)................. 13,595,750 13,076,048 40,000 Sika Finanz AG Bearer (6)................................ 10,464,053 12,995,344 1,565 Bank for International Settlements (U.S. Tranche) (24)... 11,628,784 10,740,990 855 Bank for International Settlements (French Tranche) (24). 6,444,916 5,589,840 25,000 Edipresse SA Bearer (15)................................. 5,008,072 7,259,872 2,500 Lindt & Sprungli AG PC (12).............................. 3,153,128 4,354,199 12,973 SAirgroup D.R.C. (a)(9).................................. 1,442,773 2,952,985 1,000 Schindler Holding AG PC (7).............................. 1,011,255 1,182,963 1,859 Vetropack Holding AG Bearer (12)......................... 515,795 339,807 ------------ ------------ 79,000,822 87,593,617 ------------ ------------ AUSTRIA (0.77%) 68,500 VAE AG (9)............................................... 6,894,334 7,184,948 35,000 Flughafen Wien AG (9).................................... 1,503,631 1,450,538 ------------ ------------ 8,397,965 8,635,486 ------------ ------------ ITALY (1.78%) 13,350,000 Montedison SpA Non Convertible Savings (21).............. 7,073,978 7,364,341 395,000 Istituto Finanziario Industriale SpA Privileged (20).... 3,590,377 5,413,001 650,000 Arnoldo Mondadori Editore SpA (15)....................... 4,534,147 4,763,232 550,000 Industrias Macchine Automatiche SpA (7).................. 2,133,936 2,449,554 ------------ ------------ 17,332,438 19,990,128 ------------ ------------ SPAIN AND PORTUGAL (1.30%) 750,000 Energia e Industrias Aragonesas SA (8)................... 3,762,385 5,543,237 125,000 Banco Comercial Portugues SA (17)........................ 1,782,951 2,644,766 125,000 Espirito Santo Financial Group SA ADR (17)............... 1,568,865 2,601,562 18,000 Corporacion Financiera Alba SA (20)...................... 1,273,003 2,010,079
8 SoGen Overseas Fund SCHEDULE OF INVESTMENTS SEPTEMBER 30, 1997 (UNAUDITED)
NUMBER COST VALUE OF SHARES (NOTE 1) (NOTE 1) --------- -------- -------- COMMON AND PREFERRED STOCKS (continued) SPAIN AND PORTUGAL (continued) 65,000 Companhia de Celulose do Caima SA (3).. $ 1,269,666 $ 1,299,276 100,000 Omsa Alimentacion SA (12).............. 521,569 500,571 ------------ ------------ 10,178,439 14,599,491 ------------ ------------ GREECE (0.58%) 77,680 Titan Cement Co. (6)................... 1,141,872 4,701,031 13,860 Titan Cement Co. Pfd. (6).............. 171,006 651,609 379,380 H. Benrubi & Fils SA (12).............. 2,265,445 1,090,055 18,000 H. Benrubi & Fils SA Pfd. (12)......... 92,036 42,668 ------------ ------------ 3,670,359 6,485,363 ------------ ------------ TURKEY (0.14%) 95,474,400 Medya Holding Group (15)............... 3,092,220 821,921 74,250,000 Sabah Yayincilik A.S. (15)............. 1,171,231 777,699 ------------ ------------ 4,263,451 1,599,620 ------------ ------------ ISRAEL (1.17%) 1,190,550 The Israel Land Development Company Ltd. (a)(21).......................... 5,256,694 7,221,648 15,000 The Israel Land Development Company Ltd. ADR (a)(21)........................... 202,500 274,688 1,742,500 Super-Sol (a)(13)...................... 3,716,995 5,668,734 ------------ ------------ 9,176,189 13,165,070 ------------ ------------ COMMONWEALTH OF INDEPENDENT STATES (0.93%) 672,461 Firebird Fund, L.P. (a)(b)(d)(22)...... 683,593 4,033,827 9,000 Baltic Republics Fund (a)(b)(d)(22).... 905,750 2,610,000 100,000 First NIS Regional Fund SICAF (a)(b)(d)(22)......................... 1,000,000 2,000,000 7,252 Firebird Republics Fund, Ltd. Class "A' (a)(b)(d)(22)......................... 1,175,000 1,339,155 10,000 Templeton Russia Fund Inc. (22)........ 146,850 496,250 ------------ ------------ 3,911,193 10,479,232 ------------ ------------ JAPAN (15.33%) 245,000 Secom Co., Ltd. (16)................... 13,841,380 16,589,125 1,285,000 The Tokio Marine & Fire Insurance Co., Ltd. (17)............................. 14,030,815 15,479,998 350,000 Fuji Photo Film Co., Ltd. (12)......... 8,561,518 14,480,954 85,000 Toho Co., Ltd. (15).................... 11,831,103 11,510,821 185,000 Ito-Yokado Co., Ltd. (13).............. 9,593,873 10,051,925 400,000 Shimano Inc. (12)...................... 7,575,846 9,305,031 1,315,000 The Nichido Fire & Marine Insurance Co., Ltd. (17)........................ 8,675,639 8,630,831 500,000 Shiseido Company, Ltd. (12)............ 5,870,825 8,058,821 1,575,000 The Dai-Tokyo Fire & Marine Insurance Co., Ltd. (17)........................ 9,381,877 7,131,434 1,050,000 Nisshinbo Industries, Inc. (12)........ 9,701,413 6,970,049 1,115,000 Okumura Corporation (16)............... 6,168,456 5,771,154 65,000 Hitachi, Ltd. ADR (11)................. 6,162,526 5,732,187 675,000 Tachi-S Co., Ltd. (5).................. 6,854,029 5,585,511
9 SoGen Overseas Fund SCHEDULE OF INVESTMENTS SEPTEMBER 30, 1997 (UNAUDITED)
NUMBER COST VALUE OF SHARES (NOTE 1) (NOTE 1) --------- -------- -------- COMMON AND PREFERRED STOCKS (continued) JAPAN (continued) 1,000,000 The Koa Fire & Marine Insurance Co., Ltd. (17)............................. $ 5,921,975 $ 5,391,933 1,575,000 Hanshin Electric Railway Co., Ltd. (9). 6,325,346 5,312,591 361,500 Chofu Seisakusho Co., Ltd. (12)........ 6,679,061 5,135,754 565,000 Shoei Co., Ltd. (20)................... 5,200,358 4,834,877 1,125,000 The Dowa Fire & Marine Insurance Co., Ltd. (17)............................. 5,518,457 4,486,354 215,000 T. Hasegawa Co., Ltd. (12)............. 4,863,737 4,322,685 800,000 Aida Engineering, Ltd. (7)............. 5,498,495 3,981,224 550,000 Sotoh Co., Ltd. (12)................... 5,244,470 3,564,159 1,698,000 Iino Kaiun Kaisha, Ltd. (a)(9)......... 6,376,698 3,357,488 535,000 Nittetsu Mining Co., Ltd. (1).......... 4,613,602 2,978,025 45,000 Asatsu Inc. (15)....................... 1,665,107 1,140,282 70,000 Tsutsumi Jewelry Co., Ltd. (13)........ 3,695,531 1,134,051 100,000 Sonton Food Industry Co., Ltd. (12).... 1,091,566 988,659 17,000 Amatsuji Steel Ball Mfg. Co., Ltd. (7). 207,138 169,484 7,750 Fast Retailing Co., Ltd. (13).......... 332,883 162,900 ------------ ------------ 181,483,724 172,258,307 ------------ ------------ SOUTH KOREA (1.50%) 65,000 Dong Ah Tire Industry Co., Ltd. (5).... 4,286,194 3,516,393 30,000 Nam Yang Dairy Products (12)........... 2,998,533 3,032,787 100,000 LG Industrial Systems (7).............. 2,524,239 2,021,858 40,561 Woong Jin Publishing Co., Ltd. (15).... 2,282,755 1,972,639 45,939 Samsung Electronics Co., Ltd. Pfd. (10).................................. 3,011,582 1,636,734 85,000 Choong Nam Spinning (a)(12)............ 1,596,424 1,096,175 59,270 Cheil Jedang Corporation Pfd. (21)..... 1,061,802 829,132 31,740 Young Chang Akki Co. (12).............. 1,481,090 655,613 116,060 Ssangyong Cement Industries Pfd. (6)... 1,779,041 596,155 81,844 LG Electronics Inc. Pfd. (10).......... 1,704,674 594,822 16,458 LG Electronics Inc. (10)............... 233,549 323,764 70,275 Korean Air Lines Pfd. (a)(9)........... 1,021,083 345,615 12,500 Korean Air Lines (a)(9)................ 190,177 170,765 ------------ ------------ 24,171,143 16,792,452 ------------ ------------ HONG KONG (2.21%) 33,300,042 CDL Hotels International Limited (19).. 14,070,287 12,049,640 8,950,000 Shaw Brothers (Hong Kong) Limited (15). 11,732,410 9,310,868 2,500,000 South China Morning Post Holdings Corp. (15).................................. 1,523,194 2,277,720 3,750,000 China-HongKong Photo Products Holdings Limited (12).......................... 1,338,148 1,235,784 ------------ ------------ 28,664,039 24,874,012 ------------ ------------ TAIWAN (0.12%) 985,185 Far Eastern Textile, Entitlement Certificates (12)..................... 1,146,250 1,370,512 ------------ ------------
10 SoGen Overseas Fund SCHEDULE OF INVESTMENTS SEPTEMBER 30, 1997 (UNAUDITED)
NUMBER COST VALUE OF SHARES (NOTE 1) (NOTE 1) --------- -------- -------- COMMON AND PREFERRED STOCKS (continued) SINGAPORE AND MALAYSIA (0.96%) 560,000 Singapore Bus Service Ltd. (9)......... $ 3,563,550 $ 2,766,111 750,000 Clipsal Industries Ltd. (6)............ 1,755,454 2,385,000 1,000,000 Times Publishing Limited (15).......... 2,501,707 2,237,488 1,500,000 Thakral Corporation Ltd. (13).......... 1,284,616 1,275,000 350,000 Genting Berhad (12).................... 1,167,019 1,088,865 1,250,000 Intraco, Ltd. (13)..................... 1,978,011 1,079,490 ------------ ------------ 12,250,357 10,831,954 ------------ ------------ THAILAND (0.26%) 589,900 Oriental Hotel PCL (19)................ 2,916,880 2,965,978 ------------ ------------ VIETNAM (0.13%) 65,182 Templeton Vietnam Opportunities Fund, Inc. Class "A' (22)................... 786,293 745,519 162,900 The Lazard Vietnam Fund Limited (a)(b)(d)(22)......................... 448,873 407,250 42,800 The Vietnam Frontier Fund (a)(b)(d)(22)......................... 440,840 278,200 ------------ ------------ 1,676,006 1,430,969 ------------ ------------ INDIA AND PAKISTAN (0.38%) 325,000 The Pakistan Investment Fund, Inc. (a)(22)............................... 2,544,599 1,929,687 149,500 The India Fund, Inc. (22).............. 1,788,520 1,382,875 10,000 The Spartek Emerging Opportunities of India Fund (a)(b)(d)(22).............. 1,035,000 486,700 75,000 Gujarat Narmada Valley Fertilizers Company Limited GDR (8)............... 862,500 285,000 50,000 Gujarat Narmada Valley Fertilizers Company Limited GDR (b)(8)............ 640,625 190,000 ------------ ------------ 6,871,244 4,274,262 ------------ ------------ AUSTRALIA AND NEW ZEALAND (3.08%) 5,000,549 Carter Holt Harvey Limited (3)......... 10,875,028 10,870,381 1,138,590 Independent Press Communications Limited 5% Conv. Pfd. (15)............ 6,321,229 6,717,112 6,121,333 Shortland Properties Limited (19)...... 3,174,660 4,003,811 6,250,000 Tasman Agriculture Limited (4)......... 4,437,058 3,927,656 2,472,333 Spotless Services Limited (16)......... 1,488,362 2,868,500 6,353,338 Evergreen Forests Limited (a)(3)....... 2,788,257 2,525,928 725,000 Eltin Limited (24)..................... 2,309,039 1,067,240 375,700 Radio Pacific Limited (15)............. 682,453 843,212 1,250,000 Wrightson Limited (4).................. 1,215,339 777,516 800,000 Motors Holding Limited (13)............ 595,562 469,897 150,000 The Colonial Motor Company Limited (13).................................. 169,520 235,659 825,000 Apple Fields Limited (a)(4)............ 507,472 201,032 250,000 Damba Holdings Limited (13)............ 130,848 83,362 ------------ ------------ 34,694,827 34,591,306 ------------ ------------
11 SoGen Overseas Fund SCHEDULE OF INVESTMENTS SEPTEMBER 30, 1997 (UNAUDITED)
NUMBER COST VALUE OF SHARES (NOTE 1) (NOTE 1) --------- -------- -------- COMMON AND PREFERRED STOCKS (continued) CANADA (2.87%) 475,000 Noranda Inc. (21)...................... $ 8,806,986 $ 9,490,029 275,000 Canadian Pacific Limited (21).......... 4,669,325 8,129,687 145,000 Canadian National Railway Company (9).. 3,908,782 7,540,000 150,000 Franco-Nevada Mining Corp. Ltd. (24)... 3,204,853 3,534,330 185,000 Dofasco Inc. (1)....................... 2,769,277 3,528,720 ------------ ------------ 23,359,223 32,222,766 ------------ ------------ MEXICO (1.28%) 2,525,000 Industrias Penoles, S.A. de C.V. (1)... 10,117,383 12,166,323 35,000 Grupo Televisa S.A. GDR (a)(15)........ 758,654 1,253,437 3,500,000 Grupo Fernandez Editores, S.A. de C.V. "B' (a)(15)........................... 1,033,836 969,467 ------------ ------------ 11,909,873 14,389,227 ------------ ------------ ARGENTINA (0.84%) 1,650,000 Siderca S.A.I.C. (2)................... 975,256 4,950,990 3,030,864 Ledesma S.A.A.I. (4)................... 4,686,541 3,486,191 262,500 Cresud S.A.C.I.F. y A. (a)(4).......... 411,316 564,488 100,000 IRSA Inversiones y Representaciones S.A. (19)............................. 228,479 445,089 ------------ ------------ 6,301,592 9,446,758 ------------ ------------ SOUTH AFRICA (0.39%) 100,000 Omni Media Corporation (15)............ 782,730 1,540,857 53,700 Anglo American Platinum Corporation Ltd. (24)............................. 847,702 931,231 39,643 Anglo American Platinum Corporation Ltd. ADR (24)......................... 457,896 687,468 137,029 JCI Limited (1)........................ 793,198 784,242 200,000 Stellenbosch Farmers' Winery Group Limited (4)........................... 215,345 386,556 ------------ ------------ 3,096,871 4,330,354 ------------ ------------ MISCELLANEOUS (2.20%) 200,000 Banco Latinoamericano de Exportaciones S.A. Class "E' (BLADEX) (17).......... 8,384,296 8,950,000 257,500 Freeport McMoRan Copper & Gold Inc., Preferred Series "D' (d)(24).......... 5,219,425 5,439,688 235,000 Minorco ADR (1)........................ 5,279,557 5,243,437 175,000 North European Oil Royalty Trust (2)... 2,363,842 2,953,125 500 Socfinasia (20)........................ 673,348 1,608,314 5,000 Carl Marks Global Value Fund, L.P. (a)(b)(d)(22)......................... 500,000 517,850 ------------ ------------ 22,420,468 24,712,414 ------------ ------------ TOTAL COMMON AND PREFERRED STOCKS...... 744,094,811 811,131,303 ------------ ------------
12 SoGen Overseas Fund SCHEDULE OF INVESTMENTS SEPTEMBER 30, 1997 (UNAUDITED)
PRINCIPAL COST VALUE AMOUNT (NOTE 1) (NOTE 1) --------- -------- -------- BONDS, NOTES AND CONVERTIBLE BONDS U.S. DOLLAR CONVERTIBLE BONDS (2.57%) $1,100,000 Medya International Ltd. 10% due 6/28/2001 (15)........................ $ 954,777 $ 858,000 1,250,000 International Container Terminal Services, Inc. 5% due 9/15/2001 (d)(e)(9)............................. 1,060,076 1,012,500 3,000,000 International Container Terminal Services, Inc. 1 3/4% due 3/13/2004 (9)................................... 2,802,400 2,647,500 1,500,000 YangMing Marine Transportation 2% due 10/06/2001 (9)........................ 1,737,000 1,672,500 1,000,000 Sincere Navigation Corporation 3 3/4% due 5/26/2003 (9)..................... 1,051,125 1,152,500 2,860,000 IRSA Inversiones y Representaciones S.A. 4 1/2% due 8/02/2003 (19)........ 2,999,309 3,274,700 6,761,000 Scandinavian Broadcasting System SA 7 1/4% due 8/01/2005 (15)............... 6,523,665 6,963,830 4,925,000 P.T. Inti Indorayon Utama 7% due 5/02/2006 (3)......................... 3,940,196 3,570,625 1,000,000 Tipco Asphalt Public Co. Ltd. 2 3/4% due 9/19/2006 (6)..................... 871,728 875,000 5,750,000 Cheil Jedang Corporation 3% due 12/31/2006 (21)....................... 6,892,480 6,871,250 ------------ ------------ 28,832,756 28,898,405 ------------ ------------ U.S. DOLLAR BONDS AND NOTES (6.25%) 2,500,000 IRSA Inversiones y Representaciones S.A. 8 7/8% due 3/03/1999 (19)........ 2,391,412 2,551,562 300,000 Tubos de Acero de Mexico S.A. 10 1/2% due 3/10/1999 (d)(2)...................... 294,475 310,500 1,000,000 Cemex SA 10% due 11/05/1999 (6)........ 969,499 1,046,250 500,000 P.T. Inti Indorayon Utama 9 1/8% due 10/15/2000 (3)........................ 458,709 505,625 1,950,000 PT Pabrik Kertas Tjiwi Kimia 13 1/4% due 8/01/2001 (3)..................... 2,029,250 2,165,475 1,000,000 Banco Safra SA 10 3/8% due 10/28/2002 (b)(17)............................... 987,651 976,250 500,000 Vital Forsikring FRN due 12/22/2003 (6.9688% @ 9/30/1997) (17)............ 498,517 505,500 9,000,000 Grupo Televisa S.A. 0/13 1/4% due 5/15/2008 (0% @ 9/30/97) (a)(15)................ 6,058,707 6,918,750 6,960,000 Republic of Argentina FRB due 3/31/2005 (6.6875% @ 9/30/1997) (23)............ 5,340,153 6,620,700 5,750,000 Republic of Argentina Par 5 1/2% due 3/31/2023 (23)........................ 2,792,614 4,355,625 1,962,500 Federal Republic of Brazil IDU FRN due 1/01/2001 (6.8125% @ 9/30/1997) (23).. 1,615,937 1,945,819 445,500 Federal Republic of Brazil EI FRN due 4/15/2006 (6.8750% @ 9/30/1997) (23).. 309,861 417,935 7,500,000 Federal Republic of Brazil DCB FRN due 4/15/2012 (6.9375% @ 9/30/1997) (23).. 5,870,275 6,365,625 4,547,747 Federal Republic of Brazil "C' Bonds 8% due 4/15/2014 (23)........................ 2,458,155 3,871,270 500,000 Federal Republic of Brazil Disc. ZL FRN due 4/15/2024 (6.8750% @ 9/30/1997) (23).................................. 309,571 440,937 1,750,000 Federal Republic of Brazil Par ZL 5 1/4% due 4/15/2024 (23)........................ 788,867 1,291,719 1,000,000 Republic of Ecuador Disc. FRN due 2/28/2025 (6.6875% @ 9/30/1997) (23)............ 555,092 815,625
13 SoGen Overseas Fund SCHEDULE OF INVESTMENTS SEPTEMBER 30, 1997 (UNAUDITED)
PRINCIPAL COST VALUE AMOUNT (NOTE 1) (NOTE 1) --------- -------- -------- BONDS, NOTES AND CONVERTIBLE BONDS (continued) U.S. DOLLAR BONDS AND NOTES (continued) $ 2,250,000 United Mexican States Disc. FRN "A' due 12/31/2019 (6.8671% @ 9/30/1997) (23).................. $ 1,900,478 $ 2,151,562 1,750,000 United Mexican States Disc. FRN "B' due 12/31/2019 (6.8359% @ 9/30/1997) (23).................. 1,475,884 1,673,437 750,000 United Mexican States Disc. FRN "C' due 12/31/2019 (6.8203% @ 9/30/1997) (23).................. 628,646 717,188 2,750,000 United Mexican States Disc. FRN "D' due 12/31/2019 (6.8125% @ 9/30/1997) (23).................. 2,353,541 2,629,687 1,904,760 Republic of Venezuela FLIRB "B' due 3/31/2007 (6 3/4% @ 9/30/1997) (23).................. 1,080,314 1,814,284 3,000,000 Republic of Venezuela DCB FRN due 12/18/2007 (6 3/4% @ 9/30/1997) (23)............................. 2,037,932 2,863,125 1,000,000 Republic of Venezuela Disc. "A' FRN due 3/31/2020 (6.8125% @ 9/30/1997) (23).................. 573,814 938,750 1,000,000 Central Bank of the Philippines NMB FRN due 1/05/2005 (6.7187% @ 9/30/1997) (23).................. 926,698 961,875 250,000 Central Bank of the Philippines DCB FRN due 12/01/2009 (6.8125% @ 9/30/1997) (23).................. 219,934 235,625 3,000,000 Republic of Bulgaria IAB due 7/28/2011 (6.6875% @ 9/30/1997) (23)....... 2,191,620 2,428,125 1,000,000 Republic of Bulgaria Disc. "A' FRN due 7/28/2024 (6.6875% @ 9/30/1997) (23).................. 527,500 832,500 3,250,000 Republic of Poland Disc. FRN due 10/27/2024 (6.9375% @ 9/30/1997) (23)............................. 2,300,435 3,189,062 1,500,000 Bergen Bank Floating Rate Perpetual Notes (6% @ 9/30/1997) (17)............ 1,165,250 1,332,525 3,000,000 Christiana Bank Floating Rate Perpetual Notes (6 1/4% @ 9/30/1997) (17)........ 2,326,250 2,715,000 1,500,000 A/S Eksportfinans 0% due 11/07/1997 (a)(d)(2)............. 1,500,000 2,365,800 2,000,000 Goldman Sachs Group L.P. Cocoa Indexed Note 5.90% due 11/10/1997 (d)(4)........................... 2,000,000 2,299,600 ------------- ------------ 56,937,041 70,253,312 ------------- ------------ NON U.S. DOLLAR CONVERTIBLE BONDS (2.35%) NZD 2,153,666 Shortland Properties Limited 7 1/2% due 12/31/1998 (19).................. 1,013,716 1,367,228 CAD 3,250,000 InterTAN, Inc. 9% due 8/30/2000 (13)............................. 2,389,235 2,523,164 JPY 200,000,000 Nippon Yusen Kabushiki 2% due 9/29/2000 (9).................... 2,271,122 1,711,461 JPY 200,000,000 Hanshin Electric Railway Co., Ltd. 1 1/2% due 9/30/2005 (9)......... 1,590,197 1,545,300 FRF 40,300,000 Immobiliere Hoteliere 5% due 1/01/2001 (19)................... 6,328,712 4,756,521 FRF 3,696,000 Crometal 4 1/2% due 1/01/2001 (7). 726,377 683,054 FRF 3,358,800 Gaumont SA 3.75% 1/01/2003 (15)... 653,654 643,205 FRF 16,000,000 Alcatel Alsthom 2 1/2% due 1/01/2004 (21)................... 3,110,687 3,298,307 ECU 775,000 Espirito Santo Financial Group SA 8 3/4% due 4/10/2003 (17)........ 1,088,932 1,146,194
14 SoGen Overseas Fund SCHEDULE OF INVESTMENTS SEPTEMBER 30, 1997 (UNAUDITED)
PRINCIPAL COST VALUE AMOUNT (NOTE 1) (NOTE 1) --------- -------- -------- BONDS, NOTES AND CONVERTIBLE BONDS (continued) NON U.S. DOLLAR CONVERTIBLE BONDS (continued) GBP 500,000 Lonrho Finance plc 6% due 2/27/2004 (21)..... $ 723,282 $ 733,520 GBP 1,850,000 BAA plc 5 3/4% due 3/29/2006 (9)............. 3,078,999 3,430,796 GBP 6,000,000 Berisford plc 5% due 1/31/2015 (12).......... 6,583,621 7,991,032 ------------ ------------ 29,558,534 29,829,782 ------------ ------------ NON U.S. DOLLAR BONDS AND NOTES (1.96%) ZAR 10,000,000 Republic of South Africa 13% due 8/31/2010 (23)........................................ 1,940,971 2,022,815 ITL 250,000,000 Bayerische Hypotheken-Wechsel Bank 7.85% due 2/14/2001 (17).............................. 149,311 155,238 ITL1,000,000,000 American International Group 11.70% due 12/04/2001 (17)............................. 670,981 707,691 CAD 2,500,000 Province of Alberta 10 1/4% due 8/22/2001 (23)........................................ 1,846,733 2,118,044 CAD 500,000 Province of Quebec 10 1/4% due 10/15/2001 (23)........................................ 377,818 426,002 NZD 5,500,000 New Zealand Government 10% due 3/15/2002 (23)........................................ 3,975,359 3,965,541 NZD 3,500,000 Trans Power Finance Limited 8% due 3/15/2002 (18).............................. 2,258,550 2,314,198 NZD 500,000 Telecom Corp. of New Zealand 9 1/4% due 7/1/2002 (18)............................... 305,150 346,676 NZD 1,500,000 Telecom Corp. of New Zealand 7 1/2% due 7/14/2003 (18).............................. 877,791 968,489 FRF 21,500,000 United Mexican States Par 6.63% due 12/31/2019 (23)............................. 2,486,874 2,964,722 FRF 12,500,000 Republic of Venezuela Par 7.71% due 3/31/2020 (23).............................. 1,383,421 1,855,657 CHF 500,000 Scandinavian Airlines Variable Rate Perpetual Notes (3 5/8% @ 9/30/1997) (9).............. 247,886 248,319 DEM 900,000 Air Canada Variable Rate Perpetual Notes (4 5/8% @ 9/30/1997) (9).................... 349,963 339,574 DEM 170,000 Air Canada 6 1/4% Perpetual Notes (9)........ 99,273 106,474 ------------ ------------ 16,970,081 18,539,440 ------------ ------------ TOTAL BONDS, NOTES AND CONVERTIBLE BONDS..... 132,298,412 147,520,939 ------------ ------------ SHORT-TERM INVESTMENTS (14.62%) $ 9,987,000 Rayonier Inc. 5.71% due 10/01/1997........... 9,987,000 9,987,000 4,892,000 Raytheon Company 6.60% due 10/01/1997........ 4,892,000 4,892,000 14,539,000 Raytheon Company 5.82% due 10/02/1997........ 14,536,650 14,536,650 4,000,000 Toshiba International Finance plc 6% due 10/02/1997.................................. 3,999,333 3,999,333 9,288,000 Burlington Northern Santa Fe Corporation 5.65% due 10/03/1997........................ 9,285,085 9,285,085 9,776,000 Rayonier Inc. 5.71% due 10/06/1997........... 9,768,247 9,768,247 5,211,000 CSX Corporation 5.64% due 10/07/1997......... 5,206,102 5,206,102 10,000,000 Samsung Electronics, America Inc. 5.78% due 10/08/1997.................................. 9,988,761 9,988,761 10,353,000 CSX Corporation 5.67% due 10/09/1997......... 10,339,955 10,339,955
15 SoGen Overseas Fund SCHEDULE OF INVESTMENTS SEPTEMBER 30, 1997 (UNAUDITED)
PRINCIPAL COST VALUE AMOUNT (NOTE 1) (NOTE 1) --------- -------- -------- SHORT- TERM INVESTMENTS (continued) $10,354,000 Raytheon Company 5.87% due 10/10/1997.................... $ 10,338,805 $ 10,338,805 10,000,000 Union Pacific Corporation 5.67% due 10/14/1997................ 9,979,525 9,979,525 6,907,000 CSX Corporation 5.67% due 10/15/1997.................... 6,891,770 6,891,770 11,729,000 Newell Company 5.54% due 10/16/1997.................... 11,701,926 11,701,926 7,395,000 Union Pacific Corporation 5.65% due 10/17/1997................ 7,376,430 7,376,430 10,000,000 CSX Corporation 5.64% due 10/20/1997.................... 9,970,233 9,970,233 6,229,000 Crown Cork & Seal Company, Inc. 5.73% due 10/21/1997.......... 6,209,171 6,209,171 5,294,000 Lockheed Martin Corporation 5.66% due 10/29/1997.......... 5,270,695 5,270,695 2,000,000 H.J. Heinz Company 5.50% due 11/13/1997.................... 1,986,861 1,986,861 11,000,000 Samsung Electronics America, Inc. 5.78% due 11/13/1997..... 10,924,057 10,924,057 5,600,000 Union Pacific Corporation 5.65% due 11/14/1997................ 5,561,329 5,561,329 -------------- -------------- TOTAL SHORT-TERM INVESTMENTS... 164,213,935 164,213,935 -------------- -------------- TOTAL INVESTMENTS (99.94%)..... $1,040,607,158* 1,122,866,177** ============== Other assets in excess of liabilities (0.06%)........... 716,523 -------------- Net assets (100.00%)........... $1,123,582,700 ==============
16 SoGen Overseas Fund NOTES TO SCHEDULE OF INVESTMENTS SEPTEMBER 30, 1997 (UNAUDITED) (a) Non-income producing security. (b) Can be sold only to qualified institutional buyers. (c) Commodity-linked security whereby the coupon, dividend and/or redemption amount is linked to the price of an underlying commodity or commodity index. (d) Security for which there are less than three market makers. * At September 30, 1997 cost is identical for both book and federal income tax purposes. ** Gross unrealized appreciation and depreciation of securities at September 30, 1997 were $148,965,932 and $66,706,913, respectively (net appreciation was $82,259,019).
FOREIGN CURRENCIES INDUSTRY CLASSIFICATIONS - ------------------ ------------------------ NZD--New Zealand Dollar (1) Metals and Minerals (13) Distribution CAD--Canadian Dollar (2) Energy (14) Health Care JPY--Japanese Yen (3) Paper and Forest Products (15) Media FRF--French Franc (4) Agriculture (16) Services ECU--European Currency Unit (5) Automotive (17) Financial Services GBP--Pound Sterling (6) Building Materials (18) Utilities ZAR--South African Rand (7) Capital Goods (19) Real Estate ITL--Italian Lira (8) Chemicals (20) Holding Companies CHF--Swiss Franc (9) Transportation (21) Conglomerates DEM--Deutsche Mark (10) Electronics (22) Investment Companies (11) Technology (23) Government Issues (12) Consumer Products (24) Gold Related
BOND TYPES - ---------- FRB--Floating Rate Bond EI--Eligible Interest FRN--Floating Rate Note FLIRB--Front Loaded Interest Reduction Bond IDU--Interest Due Unpaid NMB--New Money Bond "C'--Capitalization DCB--Debt Conversion Bond IAB--Interest in Arrears Bond
- ----------- See Notes to Financial Statements. 17 SoGen Gold Fund SCHEDULE OF INVESTMENTS SEPTEMBER 30, 1997 (UNAUDITED)
NUMBER COST VALUE OF SHARES (NOTE 1) (NOTE 1) --------- -------- -------- COMMON AND PREFERRED STOCKS UNITED STATES (32.04%) 157,500 Freeport McMoRan Copper & Gold Inc., Preferred Series "C' (c)............... $5,723,709 $4,626,562 100,000 Freeport McMoRan Copper & Gold Inc., Preferred Series "D' (c)............... 2,151,079 2,112,500 55,000 Freeport McMoRan Copper & Gold Inc., Preferred Series "B' (c)............... 2,081,910 1,677,500 70,000 Newmont Mining Corporation.............. 2,668,150 3,145,625 100,000 Homestake Mining Company................ 2,021,673 1,531,250 1,000 Case, Pomeroy & Co., Inc. Class "A'..... 1,084,930 1,206,000 8,500 Amax Gold Inc. $3.75 Conv. Pfd. Series "B'.................................... 436,223 459,000 45,000 Amax Gold Inc. (a)...................... 379,225 298,125 ---------- ---------- 16,546,899 15,056,562 ---------- ---------- CANADA (18.51%) 100,000 Franco-Nevada Mining Corp. Ltd.......... 1,367,664 2,356,220 100,000 Euro-Nevada Mining Corp. Ltd............ 616,160 1,755,402 105,000 Pan American Silver Corp. (a)........... 350,923 877,882 75,000 Cambior Inc............................. 1,019,306 844,222 35,000 Placer Dome Inc......................... 745,725 669,375 115,000 Meridian Gold Inc. (a).................. 433,623 570,234 65,000 TVX Gold Inc. (a)....................... 649,336 406,250 100,000 Dayton Mining Corporation (a)........... 492,662 350,000 54,190 Echo Bay Mines Ltd...................... 671,191 308,206 45,000 Golden Star Resources Ltd. (a).......... 550,389 289,687 35,000 Pegasus Gold Inc. (a)................... 552,623 196,875 15,000 Miramar Mining Corporation.............. 58,510 59,177 110,000 TVI Pacific Inc. (a).................... 91,101 15,925 ---------- ---------- 7,599,213 8,699,455 ---------- ---------- AUSTRALIA & NEW ZEALAND (4.41%) 1,500,000 Perilya Mines N.L. (a).................. 896,936 641,758 250,000 Eltin Limited........................... 727,236 368,014 500,000 Otter Gold Mines Limited (a)............ 600,962 326,317 500,000 Kidston Gold Mines Limited (a).......... 800,632 279,183 285,000 Macraes Mining Company Limited.......... 437,507 237,668 170,000 Macraes Mining Company Limited 7% due 9/15/1998.............................. 338,804 160,258 500,000 Panorama Resources NL (a)............... 107,089 58,012 ---------- ---------- 3,909,166 2,071,210 ---------- ---------- SOUTH AFRICA (13.37%) 215,000 Vaal Reefs Exploration & Mining Company Ltd. ADR............................... 1,726,163 1,155,625 49,450 Anglo American Platinum Corporation Ltd.................................... 775,337 857,530 12,877 Anglo American Platinum Corporation Ltd. ADR.................................... 140,538 223,309 115,000 Driefontein Consolidated Ltd. ADR....... 1,152,963 848,125 100,000 Free State Consolidated Gold Mines Ltd. ADR.................................... 1,267,843 625,000 25,000 Gold Fields of South Africa............. 732,566 503,329
18 SoGen Gold Fund SCHEDULE OF INVESTMENTS SEPTEMBER 30, 1997 (UNAUDITED)
NUMBER COST VALUE OF SHARES (NOTE 1) (NOTE 1) --------- -------- -------- COMMON AND PREFERRED STOCKS (continued) SOUTH AFRICA (continued) 120,250 St. Helena Gold Mines Ltd. ADR..... $ 1,024,168 $ 496,031 28,250 St. Helena Gold Mines Ltd.......... 173,869 111,022 65,000 Kloof Gold Mining Company Limited ADR............................... 829,870 394,063 445,681 Avgold Limited (a)................. 1,084,164 370,404 70,000 Harmony Gold Mining Company Ltd. (a)............................... 383,890 296,897 98,750 Durban Roodepoort Deep Limited (a). 917,859 230,095 57,500 Durban Roodepoort Deep Limited ADR (a)............................... 481,875 141,055 75,000 Durban Roodepoort Deep Limited "B' Options (a)....................... 0 31,810 ----------- ----------- 10,691,105 6,284,295 ----------- ----------- SWITZERLAND (11.09%) 545 Bank for International Settlements (U.S. Tranche).................... 4,214,954 3,740,472 225 Bank for International Settlements (French Tranche).................. 1,603,440 1,471,011 ----------- ----------- 5,818,394 5,211,483 ----------- ----------- MISCELLANEOUS (12.10%) 375,000 Industrias Penoles, S.A. de C.V.... 1,078,151 1,806,880 895,000 Lonrho plc ........................ 2,161,370 1,668,794 1,090,828 Minas De Arcata S.A. (a)........... 1,448,082 1,442,622 1,000,000,000 Manila Mining Corporation "B'...... 1,842,974 492,754 25,000 Ashanti Goldfields Company Limited GDR............................... 524,000 275,000 ----------- ----------- 7,054,577 5,686,050 ----------- ----------- TOTAL COMMON AND PREFERRED STOCKS.. 51,619,354 43,009,055 ----------- ----------- PRINCIPAL AMOUNT --------- BONDS, NOTES AND CONVERTIBLE BONDS U.S. DOLLAR CONVERTIBLE BONDS (4.92%) $1,000,000 Gold Mines of Kalgoorlie 7 1/2% due 2/28/2000......................... 1,091,644 1,045,000 100,000 Dayton Mining Corporation 7% due 4/01/2002 (b)..................... 100,000 89,500 350,000 Pegasus Gold Inc. 6 1/4% due 4/30/2002......................... 385,500 260,312 250,000 Pegasus Gold Inc. 6 1/4% due 4/30/2002 (b)..................... 218,614 185,937 150,000 Ashanti Goldfields Company Limited 5 1/2% due 3/15/2003.............. 130,683 125,715 500,000 Agnico-Eagle Mines Limited 3 1/2% due 1/27/2004..................... 400,880 403,750 215,000 Coeur d'Alene Mines Corporation 6 3/8% due 1/31/2004................ 215,087 201,561 ----------- ----------- TOTAL BONDS, NOTES AND CONVERTIBLE BONDS............................. 2,542,408 2,311,775 ----------- ----------- SHORT-TERM INVESTMENTS (3.57%) 1,678,000 Raytheon Company 6.60% due 10/01/1997........................ 1,678,000 1,678,000 ----------- ----------- TOTAL INVESTMENTS (100.01%)........ $55,839,762* 46,998,830** =========== Other liabilities in excess of assets (-0.01%)................... (2,622) ----------- Net assets (100.00%)............... $46,996,208 ===========
19 SoGen Gold Fund NOTES TO SCHEDULE OF INVESTMENTS SEPTEMBER 30, 1997 (UNAUDITED) (a) Non-income producing security. (b) Can only be sold to qualified institutional buyers. (c) Commodity-linked security whereby the coupon, dividend and/or redemption amount is linked to the price of an underlying commodity. * At September 30, 1997 cost is identical for both book and federal income tax purposes. ** Gross unrealized appreciation and depreciation of securities at September 30, 1997 were $4,341,730 and $13,182,662 respectively (net depreciation was $8,840,932). - ----------- See Notes to Financial Statements. 20 SoGen Money Fund SCHEDULE OF INVESTMENTS SEPTEMBER 30, 1997 (UNAUDITED)
CREDIT PRINCIPAL COST VALUE RATING+ AMOUNT (NOTE 1) (NOTE 1) ------- --------- -------- -------- COMMERCIAL PAPER (98.84%) A1 $288,000 American Express Credit Corporation 5.56% due 10/01/1997...................... $ 288,000 $ 288,000 A1 620,000 PepsiCo, Inc. 5.50% due 10/01/1997...................... 620,000 620,000 A1 500,000 Prudential Funding Corporation 6.07% due 10/01/1997............ 500,000 500,000 A1 585,000 TRW Inc. 6.35% due 10/01/1997.... 585,000 585,000 A1+ 620,000 Dresdner U.S. Finance Inc. 5.47% due 10/02/1997.................. 619,906 619,906 A1+ 500,000 Merrill Lynch & Co., Inc. 5.64% due 10/02/1997.................. 499,922 499,922 A1 600,000 Toshiba International Finance plc 6.00% due 10/02/1997............ 599,900 599,900 A1+ 600,000 J.P. Morgan & Co. Incorporated 5.50% due 10/03/1997............ 599,817 599,817 A1 600,000 Ford Motor Credit Company 5.45% due 10/06/1997.................. 599,546 599,546 A1+ 600,000 The Southland Corporation 5.54% due 10/07/1997.................. 599,446 599,446 A1 502,000 Pearson Inc. 5.50% due 10/08/1997...................... 501,463 501,463 A1 600,000 Toys "R' US, Inc. 5.48% due 10/10/1997...................... 599,178 599,178 A1+ 620,000 Fuji Photo Film Finance U.S.A., Inc. 5.53% due 10/14/1997....... 618,762 618,762 A1 600,000 The Walt Disney Company 5.55% due 10/15/1997...................... 598,705 598,705 A1+ 490,000 Toyota Motor Credit Corporation 5.44% due 10/16/1997............ 488,889 488,889 A1 620,000 Air Products and Chemicals, Inc. 5.47% due 10/17/1997............ 618,493 618,493 A1+ 615,000 Emerson Electric Co. 5.48% due 10/20/1997...................... 613,221 613,221 A1 400,000 Xerox Corporation 5.47% due 10/22/1997...................... 398,724 398,724 A1 600,000 The Sherwin-Williams Company 5.50% due 10/23/1997............ 597,983 597,983 A1+ 249,000 The Coca Cola Company 5.48% due 10/28/1997...................... 247,976 247,976 A1+ 600,000 General Electric Capital Corporation 5.50% due 11/05/1997...................... 596,792 596,792 A1 600,000 H.J. Heinz Company 5.50% due 11/13/1997...................... 596,058 596,058 ----------- ----------- TOTAL COMMERCIAL PAPER........... $11,987,781* 11,987,781 =========== Other assets in excess of liabilities (1.16%)............. 140,927 ----------- Net assets (100.00%)............. $12,128,708 ===========
- ----------- * At September 30, 1997 cost is identical for both book and federal income tax purposes. + Credit ratings given by Standard & Poor's Corporation. An A1+ or A1 rating indicates a short-term instrument of the highest quality. - ----------- See Notes to Financial Statements. 21 SoGen Funds, Inc. STATEMENT OF ASSETS AND LIABILITIES SEPTEMBER 30, 1997 (UNAUDITED)
SOGEN SOGEN SOGEN OVERSEAS FUND GOLD FUND MONEY FUND -------------- ----------- ----------- ASSETS: Investments, at value (cost: $1,040,607,158, $55,839,762 and $11,987,781, respectively) (Note 1)........................... $1,122,866,177 $46,998,830 $11,987,781 Cash................................ 1,620,553 47,806 -- Receivable for forward currency contracts held, at value (Notes 1 and 6)............................. 4,266,614 -- -- Receivable for investment securities sold............................... 2,750,672 -- -- Receivable for Fund shares sold..... 3,881,142 215,905 196,533 Accrued interest and dividends receivable......................... 4,767,255 187,582 -- Prepaid expenses and other assets... 16,147 946 1,473 Deferred organization costs (Note 1)................................. 10,185 10,200 10,176 -------------- ----------- ----------- TOTAL ASSETS..................... 1,140,178,745 47,461,269 12,195,963 -------------- ----------- ----------- LIABILITIES: Payable for Fund shares redeemed.... 6,010,932 122,562 -- Payable for investment securities purchased.......................... 4,592,542 198,631 -- Payable for forward currency contracts held, at value (Notes 1 and 6)............................. 3,756,727 15 -- Investment advisory fees payable (Note 2)........................... 683,237 26,623 26,179 Distribution fees payable (Note 3).. 701,295 27,647 -- Directors' fees payable (Note 2).... 41,852 3,305 884 Accrued expenses and other liabilities........................ 809,460 86,278 40,192 -------------- ----------- ----------- TOTAL LIABILITIES................ 16,596,045 465,061 67,255 -------------- ----------- ----------- NET ASSETS: Capital stock (par value, $0.001 per share)............................. 75,406 4,865 12,129 Capital surplus..................... 945,888,380 56,986,749 12,116,579 Net unrealized appreciation (depreciation) on: Investments......................... 82,259,019 (8,840,931) -- Forward currency contracts.......... 509,887 (15) -- Foreign currency related transactions....................... (42,263) (1,502) -- Undistributed net realized gains (loss) on investments.............. 44,773,814 (1,779,614) -- Undistributed net investment income. 50,118,457 626,656 -- -------------- ----------- ----------- NET ASSETS (Note 1).............. $1,123,582,700 $46,996,208 $12,128,708 ============== =========== =========== NET ASSET VALUE PER SHARE (NAV) (based on 75,405,720, 4,865,175 and 12,128,708 shares outstanding, respectively; 1,000,000,000 shares authorized) (Note 5)................ $ 14.90 $ 9.66 $ 1.00 ============== =========== =========== MAXIMUM OFFERING PRICE PER SHARE (NAV / 96.25%; except SoGen Money Fund)............................... $ 15.48 $ 10.04 $ 1.00 ============== =========== ===========
- ----------- See Notes to Financial Statements. 22 SoGen Funds, Inc. STATEMENT OF OPERATIONS FOR THE SIX MONTHS ENDED SEPTEMBER 30, 1997 (UNAUDITED)
SOGEN SOGEN SOGEN OVERSEAS FUND GOLD FUND MONEY FUND ------------- ----------- ---------- INVESTMENT INCOME: Income: Interest (net of $27,691 and $1,091 foreign taxes withheld, respectively).. $ 9,795,858 $ 145,798 $366,461 Dividends (net of $999,305 and $11,322 foreign taxes withheld, respectively).. 10,955,447 652,721 -- ------------ ----------- -------- Total income from operations........... 20,751,305 798,519 366,461 ------------ ----------- -------- Expenses: Investment advisory fees (Note 2)....... 3,994,210 174,083 26,139 Distribution fees (Note 3).............. 1,336,242 58,205 -- Shareholder servicing agent fees........ 600,835 74,691 11,344 Custodian fees.......................... 505,922 30,335 15,083 Registration and filing fees............ 62,993 6,551 11,510 Printing................................ 54,475 2,898 1,468 Audit fees.............................. 22,426 14,111 7,020 Directors' fees (Note 2)................ 17,053 832 256 Insurance............................... 10,889 3,224 1,047 Legal fees.............................. 3,553 189 38 Amortization of deferred organization costs (Note 1)......................... 2,652 2,652 2,652 Miscellaneous........................... 20,157 5,063 251 ------------ ----------- -------- Total expenses from operations......... 6,631,407 372,834 76,808 ------------ ----------- -------- Advisory fees waived (Note 2)........... -- -- (26,139) Expense reimbursement................... -- -- (2,274) Expense reduction due to earnings credits (Note 1)....................... (7,500) (845) (135) ------------ ----------- -------- Net expenses from operations........... 6,623,907 371,989 48,260 ------------ ----------- -------- Net investment income (Note 1).......... 14,127,398 426,530 318,201 ------------ ----------- -------- REALIZED AND UNREALIZED GAINS (LOSSES) ON INVESTMENTS AND FOREIGN CURRENCY RELATED TRANSACTIONS (NOTES 1 AND 6): Net realized gains (losses) from: Investment transactions................. 29,078,788 (494,817) -- Foreign currency related transactions... 26,947,412 (29,124) -- ------------ ----------- -------- 56,026,200 (523,941) -- ------------ ----------- -------- Change in unrealized appreciation (depreciation) of: Investments............................. 23,001,543 (4,383,362) -- Foreign currency related transactions... (16,902,731) (370) -- ------------ ----------- -------- 6,098,812 (4,383,732) -- ------------ ----------- -------- Net gain (loss) on investments and foreign currency related transactions.. 62,125,012 (4,907,673) -- ------------ ----------- -------- NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS............... $ 76,252,410 $(4,481,143) $318,201 ============ =========== ========
- ----------- See Notes to Financial Statements. 23 SoGen Funds, Inc. STATEMENTS OF CHANGES IN NET ASSETS
SOGEN SOGEN SOGEN OVERSEAS FUND GOLD FUND MONEY FUND ---------------------------- ------------------------- ------------------------- Six Months Six Months Six Months Ended Year Ended Year Ended Year September 30, Ended September 30, Ended September 30, Ended 1997 March 31, 1997 March 31, 1997 March 31, (Unaudited) 1997 (Unaudited) 1997 (Unaudited) 1997 -------------- ------------ ------------- ----------- ------------- ----------- OPERATIONS: Net investment income.. $ 14,127,398 $ 17,840,624 $ 426,530 $ 716,920 $ 318,201 $ 503,842 Net realized gain (loss) from investments and foreign currency related transactions.. 56,026,200 51,771,626 (523,941) (761,753) -- -- Increase (decrease) in unrealized appreciation (depreciation) of investments and foreign currency related transactions.. 6,098,812 21,576,825 (4,383,732) (7,932,740) -- -- -------------- ------------ ----------- ----------- ----------- ----------- Net increase (decrease) in net assets resulting from operations........... 76,252,410 91,189,075 (4,481,143) (7,977,573) 318,201 503,842 -------------- ------------ ----------- ----------- ----------- ----------- DISTRIBUTIONS TO SHAREHOLDERS: Dividends paid from net investment income..... -- (35,317,287) -- (715,209) (318,201) (503,842) Distributions paid from net realized gains from investment transactions.......... -- (22,367,476) -- (105,967) -- -- -------------- ------------ ----------- ----------- ----------- ----------- Decrease in net assets resulting from distributions........ -- (57,684,763) -- (821,176) (318,201) (503,842) -------------- ------------ ----------- ----------- ----------- ----------- FUND SHARE TRANSACTIONS (NOTE 5): Net proceeds from shares sold........... 215,813,990 398,376,548 13,526,692 55,625,012 10,068,175 90,314,681 Net asset value of shares issued for reinvested dividends and distributions..... -- 55,745,006 -- 790,492 285,265 460,368 Cost of shares redeemed.............. (121,798,343) (181,708,882) (14,700,567) (58,226,814) (11,352,523) (86,134,242) -------------- ------------ ----------- ----------- ----------- ----------- Increase (decrease) in net assets from Fund share transactions... 94,015,647 272,412,672 (1,173,875) (1,811,310) (999,083) 4,640,807 -------------- ------------ ----------- ----------- ----------- ----------- Net increase (decrease) in net assets.............. 170,268,057 305,916,984 (5,655,018) (10,610,059) (999,083) 4,640,807 NET ASSETS (NOTE 1): Beginning of period.... 953,314,643 647,397,659 52,651,226 63,261,285 13,127,791 8,486,984 -------------- ------------ ----------- ----------- ----------- ----------- End of period (including undistributed net investment income of $50,118,457, $9,043,647, $626,656, $229,250, $0 and $0, respectively)......... $1,123,582,700 $953,314,643 $46,996,208 $52,651,226 $12,128,708 $13,127,791 ============== ============ =========== =========== =========== ===========
- ----------- See Notes to Financial Statements. 24 SoGen Funds, Inc. NOTES TO FINANCIAL STATEMENTS NOTE 1--SIGNIFICANT ACCOUNTING POLICIES SoGen Overseas Fund, SoGen Gold Fund and SoGen Money Fund are three separate portfolios of SoGen Funds, Inc. (the "Company"), an open-end management in- vestment company registered under the Investment Company Act of 1940, as amended (each individually a "Fund" or collectively the "Funds"). The follow- ing is a summary of significant accounting policies adhered to by the Funds. A) SECURITY VALUATION--In the case of SoGen Overseas Fund and SoGen Gold Fund, portfolio securities are valued based on market quotations where avail- able. Short-term investments maturing in sixty days or less are valued at cost plus interest earned, which approximates value. In the case of SoGen Money Fund, portfolio securities are valued at their amortized cost, which approxi- mates market value, subject to guidelines and procedures established by the Board of Directors in accordance with applicable SEC regulations. Securities for which current market quotations are not readily available and any re- stricted securities are valued at fair value as determined in good faith by the Board of Directors. B) DEFERRED ORGANIZATION COSTS AND PREPAID EXPENSES--Costs incurred in con- nection with the organization of the Funds are amortized on a straight-line basis over a sixty-month period from the date each Fund commences investment operations. C) SECURITY TRANSACTIONS AND INCOME--Security transactions are accounted for on a trade date basis. The specific identification method is used in determin- ing realized gains and losses from security transactions. Dividend income is recorded on the ex-dividend date. Interest income is recorded daily on the ac- crual basis. In computing investment income, each Fund amortizes discounts on debt obligations; however, premiums are not amortized. D) EXPENSES--Expenses arising in connection with a Fund are charged directly to that Fund. Expenses common to all Funds are allocated to each Fund in pro- portion to its relative net assets. Earnings credits reduce custodian fees and shareholder servicing agent fees by the amount of interest earned on balances with such service providers. E) FOREIGN CURRENCY TRANSLATION (SOGEN OVERSEAS FUND AND SOGEN GOLD FUND)-- The market values of securities which are not traded in U.S. currency are re- corded in the financial statements after translation to U.S. dollars based on the applicable exchange rates at the end of the period. The costs of such se- curities are translated at exchange rates prevailing when acquired. Related dividends, interest and withholding taxes are accrued at the rates of exchange prevailing on the respective dates of such transactions. 25 SoGen Funds, Inc. NOTES TO FINANCIAL STATEMENTS (continued) NOTE 1--SIGNIFICANT ACCOUNTING POLICIES (continued) The net assets of each of SoGen Overseas Fund and SoGen Gold Fund are pre- sented at the foreign exchange rates and market values at the close of the pe- riod. Neither Fund isolates that portion of gains and losses on investments which is due to changes in foreign exchange rates from that which is due to changes in market prices of the equity securities. However, for federal income tax purposes each Fund does isolate the effect of changes in foreign exchange rates from the changes in market prices for realized gains and losses on debt obligations. F) FORWARD CURRENCY CONTRACTS (SOGEN OVERSEAS FUND AND SOGEN GOLD FUND)--In connection with portfolio purchases and sales of securities denominated in foreign currencies, SoGen Overseas Fund and SoGen Gold Fund may enter into forward currency contracts. Additionally, each Fund may enter into such con- tracts to hedge certain other foreign currency denominated investments. These contracts are valued at current market, and the related realized and unrealized foreign exchange gains and losses are included in the statement of operations. In the event that counterparties fail to settle these currency contracts or the related foreign security trades, a Fund could be exposed to foreign currency fluctuations. G) U.S. INCOME TAXES--No provision has been made for U.S. federal income taxes since it is the intention of each Fund to distribute to shareholders all taxable net investment income and net realized gains on investments, if any, within the allowable time limit, and to comply with the provisions of the In- ternal Revenue Code for a regulated investment company. SoGen Overseas Fund and SoGen Gold Fund declare and pay such income dividends and capital gains distributions on an annual basis. SoGen Money Fund declares daily dividends, equivalent to net investment income, which are paid on a monthly basis. H) RECLASSIFICATION OF CAPITAL ACCOUNTS--On the statements of assets and li- abilities, as a result of certain differences in the computation of net in- vestment income and net realized capital gains under federal income tax rules and regulations versus generally accepted accounting principles, a reclassifi- cation has been made to increase (decrease) undistributed net investment in- come and decrease (increase) undistributed net realized gains on investments in the amounts of $26,947,412 and ($29,124) for SoGen Overseas Fund and SoGen Gold Fund, respectively. I) USE OF ESTIMATES--The preparation of financial statements in conformity with generally accepted accounting principles requires management to make es- timates and assumptions that affect the reported amounts of assets and liabil- ities at the date of the financial statements and the reported amounts of rev- enues and expenses during the reporting period. Actual results could differ from those estimates. 26 SoGen Funds, Inc. NOTES TO FINANCIAL STATEMENTS (continued) NOTE 2--INVESTMENT ADVISORY AGREEMENT AND TRANSACTIONS WITH RELATED PERSONS Under the terms of an investment advisory agreement dated August 17, 1993, each Fund pays Societe Generale Asset Management Corp. ("SGAM Corp.") a monthly advisory fee for advisory services and facilities furnished, at an an- nual rate of the average daily net assets of that Fund as follows: SoGen Over- seas Fund at 0.75%, SoGen Gold Fund at 0.75% and SoGen Money Fund at 0.40%. SGAM Corp. has agreed to waive its advisory fee and, if necessary, reimburse SoGen Money Fund through July 31, 1998 to the extent that SoGen Money Fund's aggregate expenses exceed 0.75%. Expense reimbursements are accrued daily and paid monthly. For the six months ended September 30, 1997, the investment ad- visory fees paid or payable to SGAM Corp. were $3,994,210 and $174,083 for SoGen Overseas Fund and SoGen Gold Fund, respectively. For the same period, the investment advisory fee of $26,139 for SoGen Money Fund was waived in its entirety by SGAM Corp. For the six months ended September 30, 1997, Societe Generale Securities Corporation ("SGSC"), the principal underwriter, realized $187,240 and $12,967 in dealer's and underwriter's commissions, after reallowance to others, per- taining to the sale of shares of SoGen Overseas Fund and SoGen Gold Fund, re- spectively. Societe Generale, a stockholder of SGAM Corp. and SGSC, received dealer's commissions of $1,543 pertaining to the sale of shares of SoGen Over- seas Fund. For the same period, Societe Generale or its affiliates received $42,167 in broker's commissions for portfolio transactions executed on behalf of SoGen Overseas Fund. Each director who is not an officer of the Company or an employee of SGAM Corp., SGSC or its corporate affiliates is paid an annual fee of $6,000 plus $1,000 for each meeting attended. For the six months ended September 30, 1997, such fees amounted to $17,053, $832 and $256 for SoGen Overseas Fund, SoGen Gold Fund and SoGen Money Fund, respectively. NOTE 3--PLAN OF DISTRIBUTION (SOGEN OVERSEAS FUND AND SOGEN GOLD FUND) The Company has entered into a Distribution Plan and Agreement ("the Plan") with SGSC, pursuant to the provisions of Rule 12b-1 under the Investment Com- pany Act of 1940, whereby SoGen Overseas Fund and SoGen Gold Fund pay SGSC quarterly, a distribution fee at an annual rate of up to 0.25% of each Fund's average daily net assets. Under the Plan, SGSC must apply the full amounts re- ceived from a Fund to actual distribution expenses incurred during the Fund's fiscal year, including the payment of fees to dealers selling shares of the Fund, the payment of advertising costs and the payment for the printing and distribution of prospectuses to prospective investors. 27 SoGen Funds, Inc. NOTES TO FINANCIAL STATEMENTS (continued) NOTE 3--PLAN OF DISTRIBUTION (SOGEN OVERSEAS FUND AND SOGEN GOLD FUND) (continued) SGSC bears distribution costs of a Fund to the extent they exceed payments received under the Plan. For the six months ended September 30, 1997 the dis- tribution fees paid or payable to SGSC by SoGen Overseas Fund and SoGen Gold Fund were $1,336,242 and $58,205, respectively. NOTE 4--PURCHASES AND SALES OF SECURITIES During the six months ended September 30, 1997, the aggregate cost of pur- chases of investments, excluding short-term securities, totaled $205,221,007 and $2,675,938 for SoGen Overseas Fund and SoGen Gold Fund, respectively, and proceeds from sales of investments, excluding short-term securities, totaled $83,301,252 and $3,975,683 for SoGen Overseas Fund and SoGen Gold Fund, respectively. NOTE 5--CAPITAL STOCK Transactions in shares of capital stock were as follows:
SOGEN SOGEN SOGEN OVERSEAS GOLD MONEY FUND FUND FUND ----------- ---------- ----------- SIX MONTHS ENDED SEPTEMBER 30, 1997 Shares sold............................. 14,909,472 1,437,717 10,068,175 Shares issued for reinvested dividends and distributions..................... -- -- 285,265 Shares redeemed......................... (8,374,104) (1,538,956) (11,352,523) ----------- ---------- ----------- Net increase (decrease)................ 6,535,368 (101,239) (999,083) =========== ========== =========== YEAR ENDED MARCH 31, 1997 Shares sold............................. 29,110,866 4,810,848 90,314,681 Shares issued for reinvested dividends and distributions..................... 4,242,334 74,490 460,368 Shares redeemed......................... (13,310,582) (5,081,906) (86,134,242) ----------- ---------- ----------- Net increase (decrease)................ 20,042,618 (196,568) 4,640,807 =========== ========== ===========
28 SoGen Funds, Inc. NOTES TO FINANCIAL STATEMENTS (continued) NOTE 6--COMMITMENTS As of September 30, 1997, SoGen Overseas Fund and SoGen Gold Fund had en- tered into forward currency contracts, as summarized below, resulting in net unrealized appreciation (depreciation) of $509,887 and $(15), respectively. SoGen Overseas Fund TRANSACTION HEDGES: Foreign Currency Purchases
UNREALIZED UNREALIZED SETTLEMENT U.S. $ VALUE AT U.S. $ APPRECIATION AT DEPRECIATION AT DATES FOREIGN CURRENCY SEPTEMBER 30, TO BE SEPTEMBER 30, SEPTEMBER 30, THROUGH TO BE RECEIVED 1997 DELIVERED 1997 1997 - ---------- ---------------- --------------- --------- --------------- --------------- 10/02/97 73,830 Swiss Franc $ 50,926 $ 50,842 $ 84 -- 10/02/97 1,743,619 Deutsche Mark 989,287 987,101 2,186 -- 10/03/97 1,631,764 French Franc 275,664 275,916 -- $ (252) 10/07/97 40,884 Pound Sterling 66,002 66,029 -- (27) 10/03/97 1,093,604 Hong Kong Dollar 141,329 141,329 -- -- 10/02/97 196,056,000 Italian Lira 113,844 113,878 -- (34) 10/03/97 146,121,884 Japanese Yen 1,213,990 1,210,412 3,578 10/06/97 512,942 New Zealand Dollar 328,924 328,803 121 -- ------------ ------------ ---------- ----------- 3,179,966 3,174,310 5,969 (313) ------------ ------------ ---------- ----------- Foreign Currency Sales U.S. $ UNREALIZED UNREALIZED SETTLEMENT VALUE AT U.S. $ APPRECIATION AT DEPRECIATION AT DATES FOREIGN CURRENCY SEPTEMBER 30, TO BE SEPTEMBER 30, SEPTEMBER 30, THROUGH TO BE DELIVERED 1997 RECEIVED 1997 1997 - ---------- ---------------- ------------- -------- --------------- --------------- 10/01/97 474,272 Deutsche Mark 269,350 269,090 260 -- 10/06/97 315,285 Israeli Shekel 89,799 90,210 -- (411) 10/03/97 952,591,754 Italian Lira 552,063 553,141 -- (1,078) 10/02/97 13,239,561 Japanese Yen 109,554 109,995 -- (441) 10/01/97 2,004,867 Swedish Krona 263,833 264,844 -- (1,011) 10/02/97 3,018,735 South African Rand 642,270 648,284 -- (6,014) ------------ ------------ ---------- ----------- 1,926,869 1,935,564 260 (8,955) ------------ ------------ ---------- ----------- PORTFOLIO HEDGES: U.S. $ UNREALIZED UNREALIZED SETTLEMENT VALUE AT U.S. $ APPRECIATION AT DEPRECIATION AT DATES FOREIGN CURRENCY SEPTEMBER 30, TO BE SEPTEMBER 30, SEPTEMBER 30, THROUGH TO BE DELIVERED 1997 RECEIVED 1997 1997 - ---------- ---------------- ------------- -------- --------------- --------------- 6/10/98 81,366,000 Swiss Franc 56,979,976 56,878,844 101,132 -- 6/17/98 70,796,500 Deutsche Mark 45,870,375 44,577,574 1,292,801 -- 6/03/98 563,963,000 French Franc 92,954,571 96,702,030 -- (3,747,459) 6/24/98 10,097,069,800 Japanese Yen 88,344,941 86,117,650 2,227,291 -- 4/03/98 18,342,000 New Zealand Dollar 36,041,055 35,401,894 639,161 -- ------------ ------------ ---------- ----------- 320,190,918 319,677,992 4,260,385 (3,747,459) ------------ ------------ ---------- ----------- $325,297,753 $324,787,866 $4,266,614 $(3,756,727) ============ ============ ========== ===========
29 SoGen Funds, Inc. NOTES TO FINANCIAL STATEMENTS (continued) NOTE 6--COMMITMENTS (continued) SoGen Gold Fund TRANSACTION HEDGES: Foreign Currency Purchases
U.S. $ UNREALIZED UNREALIZED SETTLEMENT FOREIGN CURRENCY VALUE AT APPRECIATION AT DEPRECIATION AT DATES TO BE SEPTEMBER 30, U.S. $ TO BE SEPTEMBER 30, SEPTEMBER 30, THROUGH RECEIVED 1997 DELIVERED 1997 1997 - ---------- ---------------- ------------- ------------ --------------- --------------- 10/07/97 23,363 Pound Sterling $ 37,716 $ 37,731 -- $ (15) ============== ============ =========== =============
30 SoGen Funds, Inc. FINANCIAL HIGHLIGHTS
SIX MONTHS ENDED YEAR YEAR YEAR PERIOD FROM SEPTEMBER 30, 1997 ENDED ENDED ENDED AUGUST 31, 1993 (UNAUDITED) MARCH 31, 1997 MARCH 31, 1996 MARCH 31, 1995 TO MARCH 31, 1994 ------------------ -------------- -------------- -------------- ----------------- SOGEN OVERSEAS FUND SELECTED PER SHARE DATA Net asset value, beginning of period.... $ 13.84 $ 13.26 $ 11.65 $ 11.54 $ 10.00 ---------- -------- -------- -------- -------- Income from investment operations: Net investment income (loss)................ 0.53 0.61 0.48 0.14 (0.01) Net realized and unrealized gains on investments........... 0.53 0.95 1.74 0.04 1.55 ---------- -------- -------- -------- -------- Total from investment operations............ 1.06 1.56 2.22 0.18 1.54 ---------- -------- -------- -------- -------- Less distributions: Dividends from net investment income..... -- (0.60) (0.44) (0.05) -- Distributions from capital gains......... -- (0.38) (0.17) (0.02) -- ---------- -------- -------- -------- -------- Total distributions.... -- (0.98) (0.61) (0.07) -- ---------- -------- -------- -------- -------- Net asset value, end of period................. $ 14.90 $ 13.84 $ 13.26 $ 11.65 $ 11.54 ========== ======== ======== ======== ======== TOTAL RETURN++.......... 15.32%* 12.16% 19.47% 1.56% 15.35%++ RATIOS AND SUPPLEMENTAL DATA Net assets, end of period (000's)......... $1,123,583 $953,315 $647,398 $439,230 $119,843 Ratio of operating expenses to average net assets................. 1.19%*o 1.27%o 1.37%o 1.40% 1.72%* Ratio of net investment income to average net assets............. 2.98%*o 2.28%o 3.31%o 2.29% (0.23%)* Portfolio turnover rate. 9.47% 15.18% 9.46% 3.16% 6.11% Average commission rate paido............. $0.02 $0.0207 $0.0190 -- --
31 SoGen Funds, Inc. FINANCIAL HIGHLIGHTS
SIX MONTHS ENDED YEAR YEAR YEAR PERIOD FROM SEPTEMBER 30, 1997 ENDED ENDED ENDED AUGUST 31, 1993 (UNAUDITED) MARCH 31, 1997 MARCH 31, 1996 MARCH 31, 1995 TO MARCH 31, 1994 ------------------ -------------- -------------- -------------- ----------------- SOGEN GOLD FUND SELECTED PER SHARE DATA Net asset value, beginning of period.... $ 10.60 $ 12.25 $ 11.28 $ 11.42 $ 10.00 ------- ------- ------- ------- ------- Income from investment operations: Net investment income (loss)................ 0.08 0.26 0.24 0.08 (0.01) Net realized and unrealized gains (losses) on investments........... (1.02) (1.75) 1.35 (0.10) 1.43 ------- ------- ------- ------- ------- Total from investment operations............ (0.94) (1.49) 1.59 (0.02) 1.42 ------- ------- ------- ------- ------- Less distributions: Dividends from net investment income..... -- (0.14) (0.35) (0.04) -- Distributions from capital gains......... -- (0.02) (0.27) (0.08) -- ------- ------- ------- ------- ------- Total distributions.... -- (0.16) (0.62) (0.12) -- ------- ------- ------- ------- ------- Net asset value, end of period................. $ 9.66 $ 10.60 $ 12.25 $ 11.28 $ 11.42 ======= ======= ======= ======= ======= TOTAL RETURN++.......... (17.74%)* (12.21%) 14.81% (0.14%) 14.15%++ RATIOS AND SUPPLEMENTAL DATA Net assets, end of period (000's)......... $46,996 $52,651 $63,261 $50,922 $22,406 Ratio of operating expenses to average net assets................. 1.60%*o 1.45%o 1.41%o 1.46% 2.27%* Ratio of net investment income to average net assets................. 2.98%*o 1.20%o 1.29%o 0.79% (0.32%)* Portfolio turnover rate. 5.81% 16.83% 22.40% 11.56% 4.55% Average commission rate paido............. $0.008 $0.0009 $0.0002 -- --
- ----------- See Notes to Financial Statements. 32 SoGen Funds, Inc. FINANCIAL HIGHLIGHTS (continued)
SIX MONTHS ENDED YEAR YEAR YEAR PERIOD FROM SEPTEMBER 30, 1997 ENDED ENDED ENDED AUGUST 31, 1993 (UNAUDITED) MARCH 31, 1997 MARCH 31, 1996 MARCH 31, 1995 TO MARCH 31, 1994 ------------------ -------------- -------------- -------------- ----------------- SOGEN MONEY FUND SELECTED PER SHARE DATA Net asset value, beginning of period.... $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 ------- ------- ------ ------- ------ Income from investment operations: Net investment income.. 0.02 0.05 0.05 0.04 0.01 Net realized and unrealized gains on investments........... -- -- -- -- -- ------- ------- ------ ------- ------ Total from investment operations............ 0.02 0.05 0.05 0.04 0.01 ------- ------- ------ ------- ------ Less distributions: Dividends from net investment income..... (0.02) (0.05) (0.05) (0.04) (0.01) Distributions from capital gains......... -- -- -- -- -- ------- ------- ------ ------- ------ Total distributions.... (0.02) (0.05) (0.05) (0.04) (0.01) ------- ------- ------ ------- ------ Net asset value, end of period................. $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 ======= ======= ====== ======= ====== TOTAL RETURN............ 4.90%* 4.61% 5.03% 4.13% 1.25%++ RATIOS AND SUPPLEMENTAL DATA Net assets, end of period (000's)......... $12,129 $13,128 $8,487 $10,445 $6,392 Ratio of operating expenses to average net assets+................ 0.75%* 0.75% 0.75% 0.75% 0.75%* Ratio of net investment income to average net assets+................ 4.92%* 4.63% 4.98% 4.14% 2.18%*
- ----------- * Annualized. o Without the effect of earnings credits, the ratio of operating expenses to average net assets for the six months ended September 30, 1997 and for the years ended March 31, 1997 and 1996 would have been 1.25%, 1.27% and 1.38%, respectively, for SoGen Overseas Fund; and 1.61%, 1.46% and 1.43%, respectively, for SoGen Gold Fund. The ratio of net investment income to average net assets for the six months ended September 30, 1997 and for the years ended March 31, 1997 and 1996 would have been 2.65%, 2.27% and 3.30%, respectively, for SoGen Overseas Fund; and 1.83%, 1.19% and 1.26% respectively, for SoGen Gold Fund. + Without the effect of earnings credits, and the investment advisory fee waiver and expense reimbursement provided by SGAM Corp., the ratio of operating expenses to average net assets for SoGen Money Fund for the six months ended September 30, 1997, the years ended March 31, 1997, 1996, 1995 and for the period ended March 31, 1994 would have been 1.19%, 1.14%, 0.97%, 1.55% and 4.00%, respectively. The ratio of net investment income to average net asset for the six months ended September 30, 1997, the years ended March 31, 1997, 1996, 1995, and for the period ended March 31, 1994 would have been 4.48%, 4.26%, 4.76%, 3.34% and (1.07%), respectively. ++ Total returns disclosed for the period ended March 31, 1994 are not annualized. Annualized total returns for the period ended March 31, 1994 were 26.40%, 24.34% and 2.14% for SoGen Overseas Fund, SoGen Gold Fund and SoGen Money Fund, respectively. ++Does not give effect to deduction of the sales load. o Average commission rate paid is expressed on a per share basis. Not all commissions are computed on a per share basis; therefore, commissions expressed as a percentage of transactions may be higher. Due to the Securities and Exchange Commission disclosure guidelines, average commissions per share are calculated only for the periods subsequent to the year ended March 31, 1995. - ----------- See Notes to Financial Statements. 33 SoGen Funds, Inc. 1221 AVENUE OF THE AMERICAS NEW YORK, NY 10020 DIRECTORS AND OFFICERS DIRECTORS Dominique Raillard Philippe Collas Nathan Snyder Jean-Marie Eveillard Fred J. Meyer OFFICERS Philippe Collas...........................................Chairman of the Board Jean-Marie Eveillard..................................................President Philip J. Bafundo.......................Vice President, Secretary and Treasurer Ignatius Chithelen...............................................Vice President Sean J. McKeown..................................................Vice President Edwin S. Olsen...................................................Vice President Catherine A. Shaffer.............................................Vice President Elizabeth Tobin..................................................Vice President Charles de Vaulx.................................................Vice President Lynn L. Chin...................Assistant Vice President and Assistant Treasurer Richard M. Boyer.......................................Assistant Vice President John L. DeVita.........................................Assistant Vice President Carol Moreno................................................Assistant Secretary Warren Chan.................................................Assistant Treasurer INVESTMENT ADVISER UNDERWRITER Societe Generale Asset Management Corp. Societe Generale Securities Corporation 1221 Avenue of the Americas 1221 Avenue of the Americas New York, NY 10020 New York, NY 10020 LEGAL COUNSEL INDEPENDENT AUDITORS Dechert Price & Rhoads KPMG Peat Marwick LLP 30 Rockefeller Plaza 345 Park Avenue New York, NY 10112 New York, NY 10154 GLOBAL CUSTODIAN DOMESTIC CUSTODIAN The Chase Manhattan Bank Investors Fiduciary Trust Company 4 Chase MetroTech Center 801 Pennsylvania Brooklyn, NY 11245 Kansas City, MO 64105 SHAREHOLDER SERVICING AGENT DST Systems, Inc. 1004 Baltimore Kansas City, MO 64105 (800) 334-2143 The financial information included herein is taken from the records of the Fund without examination by the Fund's independent auditors, who do not express an opinion thereon. This report is not authorized for distribution to prospective investors unless preceded or accompanied by a currently effective prospectus of SoGen Funds, Inc. LOGO SoGen Funds, Inc. 1221 Avenue of the Americas New York, NY 10020 SGF4 -----END PRIVACY-ENHANCED MESSAGE-----