-----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, Pd7xBXmLjRtNpUemvBHUcOux06sVYE9a/wJ15gBPBWyXUHYrQ88mWPOHkKDBp3K5 tjFXgVUTzCojMSxREvoeiQ== 0000950130-99-003347.txt : 19990624 0000950130-99-003347.hdr.sgml : 19990624 ACCESSION NUMBER: 0000950130-99-003347 CONFORMED SUBMISSION TYPE: N-30D PUBLIC DOCUMENT COUNT: 1 CONFORMED PERIOD OF REPORT: 19990331 FILED AS OF DATE: 19990527 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: 99635887 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. - AR [GRAPHIC] SOGEN FUNDS, INC. SoGen International Fund SoGen Overseas Fund SoGen Gold Fund SoGen Money Fund ANNUAL REPORT March 31, 1999 SoGen Funds, Inc. THE PRESIDENT'S LETTER Dear Shareholder: Six months ago, in my letter to you, I wrote: "At the SoGen Funds, we have been so-called "value' investors on your behalf for almost twenty years. Over such a long period of time, value--as SoGen International Fund's long-term rec- ord demonstrates--has been the appropriate approach for risk averse investors." Then, I went on to note that our value approach and our long-time focus on the securities of small and medium size companies had hurt SoGen International Fund's and SoGen Overseas Fund's returns in recent years. In the past few weeks, both Funds' returns have improved. A couple of weeks don't make a trend, and as Benjamin Graham used to say, "the future is uncertain", so I shall not extrapolate. However, I believe that our patience (and yours) will be rewarded. In any case, because we see ourselves as stewards of your savings, we shall not engage in overpaying for hypothetical growth and even less in the specula- tion that we witness here and there. Even if those games stay popular--for a while. Because we all know how (though not when) they end, and the risks are simply too great. So--as we have done for twenty years--we shall look through- out the world for major discrepancies between what we perceive a company to be worth and the market price of that company's security. To illustrate, a large holding in both SoGen International Fund and SoGen Overseas Fund is Buderus AG, a German manufacturer of heating systems. This is a rather mundane business admittedly, and the local environment has been diffi- cult in recent years for construction and for consumer spending in general. Nevertheless, the company has managed to develop its business in other European countries and to grow its profits 5% to 10% a year, its return on capital em- ployed is excellent and the stock sells for less than half what we think the company is worth. In addition, the Board of Directors of Buderus AG has just authorized a buy-back of up to 10% of the shares outstanding over the next eighteen months, following newly revised German law. In the case of Buderus AG, time will tell. But in the case of another large Fund holding--CDL Hotels International Ltd., which trades in Hong Kong,--we were recently rewarded for our patience. In April 1999, management announced a financial restructuring, a way to make the value surface. The stock went up by 33% in one day upon the announcement. So, even if institutional investors worldwide continue to be hung up on "big growth", we believe that "small value" may still be recognized. Several scena- rios can realistically unfold: management may decide to buy back stock or to take steps to unlock the value; corporate acquirers ("strategic" or financial) may be lured by modest valuations and therefore become willing to pay a premium for control. SoGen International Fund Over the past twenty years (March 31, 1979 to March 31, 1999) the value of an investment in your Fund increased at a compounded annual rate of 14.93%. Over the past fifteen, ten and five years, the rates were 12.63%, 10.02% and 7.18%, respectively. Over the past twelve months the net asset value declined 7.95%.* As of March 31, 1999 your Fund's net assets, on an economic basis, were in- vested as follows: U.S. stocks(/1/) 22.5% Foreign stocks(/1/) 43.9 U.S. dollar bonds 20.0 Foreign currency bonds 2.8 Gold-related securities 6.3 U.S. dollar cash and equivalents(/2/) 4.5 ----- 100.0% =====
- -------- (/1/Includes)convertible bonds with moderate premia. (/2/Includes)floating rate securities. The ten largest equity holdings were: Buderus AG (German manufacturer of heating systems); Fuji Photo Film Co., Ltd. (Japanese film and imaging compa- ny); Manpower, Inc. (leading global temporary employment organization); Kuhne & Nagel International AG (Swiss based freight forwarding company); CDL Hotels In- ternational Ltd. (Hong Kong listed chain of hotels located in various parts of the world); Bank for International Settlements, U.S. and French tranches (the central banks' central bank, with some gold assets); Societe Generale d'Affichage D.R.C. (Swiss billboard advertising company); Rayonier, Inc. (U.S. forest products company); Secom Co., Ltd. (Japanese provider of security serv- ices); and San Juan Basin Royalty Trust (U.S. trust that receives royalties on gas properties). SoGen Overseas Fund From inception (five years and seven months ago), the value of an investment in your Fund increased at a compounded average annual rate of 8.98%. Over the past twelve months, the net asset value declined 6.46%.* As of March 31, 1999 your Fund's net assets, on an economic basis, were in- vested as follows: Foreign stocks(/1/) 87.3% U.S. dollar bonds 6.3 Foreign currency bonds 2.6 U.S. dollar cash and equivalents 3.8 ----- 100.0% =====
- -------- (/1/Includes)convertible bonds with moderate premia. The ten major holdings were Kuhne & Nagel International AG Bearer (Swiss based freight forwarding company); Bank for International Settlements, U.S. and French Tranches (the central banks' central bank, with some gold assets); So- ciete Generale d'Affichage D.R.C. (Swiss billboard advertising company); CDL Hotels International Ltd. (Hong Kong listed chain of hotels located throughout the world); Sagem ADP (French electronics company); Buderus AG (German manufac- turer of heating systems); Nichido Fire and Marine Insurance (Japanese non-life insurance company); Antofagasta Holdings plc (UK listed company with assets in Chile); Legrand ADP (French low-voltage electrical fittings manufacturer); and Industrias Penoles S.A. de C.V. (Mexican silver mining company). SoGen Gold Fund From inception (five years and seven months ago), the value of an investment in your Fund decreased at a compounded average annual rate of 7.53%. Over the past twelve months, the net asset value declined 22.77%.* 2 As of March 31, 1999 your Fund's net assets, on an economic basis, were in- vested as follows: Freeport McMoRan Copper and Gold 21.0% (Preferred Series B, C, and D) Bank for International Settlements 10.0 (U.S. and French Tranches) U.S. securities 20.1 Canadian securities 11.6 Australian securities 3.4 South African securities 20.8 Miscellaneous securities 13.2 U.S. dollar cash and equivalents (0.1) ----- 100.0% =====
Market sentiment remains hostile to gold--central banks, if not outright sellers, are willing lenders of their gold, which allows mining companies to sell forward and hedge funds to sell short. That creates a somewhat artificial pressure on the price of bullion. Since the world financial system continues-- we believe--to be fragile, gold retains its appeal as an insurance policy and a diversification tool. SoGen Money Fund Short-term interest rates are still low. However, a strong U.S. economy, pos- sible acceleration in Europe and some indication of improvement in Asia (in- cluding Japan) may lead to higher interest rates in the United States at some point in the future. Sincerely yours, [Logo of Jean-Marie Eveillard signature appears here] Jean-Marie Eveillard President April 28, 1999 - -------- * These figures assume the immediate reinvestment of all dividends and distri- butions and do not give effect to the deduction of the Fund's sales load. (See the "Investment Results" section of this report for further informa- tion.) 3 SoGen Funds, Inc. INVESTMENT RESULTS Comparisons of Change in Value of a $10,000 Investment in SoGen Funds, Inc. and Various Indices SoGen International Fund Average Annual Rates of Return as of March 31, 1999 1 Year 5 Year 10 Year ------ ------ ------- (11.41%) 6.36% 9.60%
SoGen International Fund MSCI World Index JP Morgan Global Government Consumer Price Index Bond Index 3/31/89 9627 10000 10000 10000 3/31/90 10800 9771 10553 10515 3/31/91 11451 10394 12077 11030 3/31/92 12886 10281 13617 11382 3/31/93 14802 11521 15423 11725 3/31/94 17687 13078 16400 12036 3/31/95 18152 14297 18381 12371 3/31/96 21705 17160 19592 12723 3/31/97 23764 18765 20004 13074 3/31/98 27174 24763 21319 13254 3/31/99 25013 27894 23394 13491
4 SoGen Funds, Inc. INVESTMENT RESULTS (continued) SoGen Overseas Fund Average Annual Rates of Return as of March 31, 1999 Since Inception 1 Year 5 Year 8/31/93 ------ ------ ------- (9.99%) 6.15% 8.23%
SoGen Overseas Fund MSCI EAFE Index Consumer Price Index 8/31/93 9625 10000 10000 9/30/93 9625 9775 10014 3/31/94 11107 10204 10159 9/30/94 11569 10736 10311 3/31/95 11280 10824 10442 9/30/95 12336 11357 10573 3/31/96 13477 12159 10738 9/30/96 13995 12336 10890 3/31/97 15116 12335 11035 9/30/97 16273 13838 11132 3/31/98 16627 14631 11187 9/30/98 14298 12684 11291 3/31/99 15554 15518 11387
SoGen Gold Fund Average Annual Rates of Return as of March 31, 1999 Since Inception 1 Year 5 Year 8/31/93 ------ ------ ------- (25.62%) (11.44%) (8.16%)
SoGen Gold Fund MSCI World Index FT Gold Mines Index Consumer Price Index 8/31/93 9625 10000 10000 10000 9/30/93 9644 9813 8922 10014 3/31/94 10991 10032 10826 10159 9/30/94 12098 10555 12362 10311 3/31/95 10976 10967 10264 10442 9/30/95 11784 12074 10561 10573 3/31/96 12602 13163 12414 10738 9/30/96 11707 13725 9849 10890 3/31/97 11063 14394 8706 11035 9/30/97 10082 17035 8111 11132 3/31/98 8050 18995 6091 11187 9/30/98 7191 17058 5855 11291 3/31/99 6217 21397 4622 11387
5 SoGen Funds, Inc. MANAGEMENT'S DISCUSSION OF FUND PERFORMANCE Despite concerns over the effects of the Asian crisis on global economies, U.S. and European stock market indices continued to rise until mid-July 1998 when markets worldwide fell steeply after Russia devalued its currency and de- faulted on its Ruble denominated obligations. In September, markets were also shattered by the news of the collapse of a large, highly leveraged U.S. hedge fund. Meanwhile, as oil prices suffered sharp declines, the outlook for Latin America worsened and caused local markets to fall further. The U.S. market re- covered by year end, when fears of instability began to subside. European mar- kets stabilized toward the end of the year, with large capitalization stocks strengthening ahead of the introduction of the euro on January 1, 1999. In Asia, Japanese equities continued to disappoint as stocks weakened in re- action to the release of deteriorating economic data and slow progress in the implementation of reforms. However, in March 1999 the market began to turn in reaction to merger activity and government action aimed at strengthening the banking system. In the rest of Asia, performance was also far stronger, with countries such as South Korea rebounding sharply at the beginning of the year. SoGen International Fund The Fund's net asset value declined 7.95%* between April 1, 1998 and March 31, 1999. In a difficult environment in many parts of the world, smaller stocks--and particularly value stocks--fared poorly in the United States as well as in Europe and Japan for most of the period: their prices collapsed when markets were rocked by unexpected events and failed to recover when larger growth stocks rebounded. Fund performance was also negatively affected by sharp declines in commodity prices, which caused significant weakness in our energy and forest products investments. Meanwhile our holdings in cyclical stocks re- mained depressed until March 1999 when they regained some strength. Bond hold- ings were little changed over the course of the year. Finally, the performance of the dollar had a limited impact on the net asset value of the Fund since partial hedges remained in place throughout the year. SoGen Overseas Fund The Fund's net asset value declined 6.46%* between April 1, 1998 and March 31, 1999. The difference in performance between the two Funds can be attributed to two factors: firstly, as certain Asian markets rebounded at the beginning of 1999, the net asset value of the Fund firmed, since investments in Japan ac- counted for nearly 23% of net assets, while South Korea represented about 2% of the Fund's assets at the end of the fiscal year. Secondly, the Fund's invest- ments in commodity related stocks are not a significant factor: the Fund was therefore not as negatively impacted as SoGen International Fund by the sharp declines in commodity prices. However, the majority of the Fund's assets are invested in small "value" stocks, which performed poorly over the period under consideration. SoGen Gold Fund Between April 1, 1998 and March 31, 1999, the price of gold fell 7%, ending the period at $279.80/oz. The Fund's net asset value declined 22.77%* over the period. Precious metals remained extremely volatile during that time, gaining while global equity markets suffered significant setbacks in the late summer and falling back when markets stabilized. The Fund's holdings remain widely di- versified across the world. We continue to avoid speculative and overpriced mining stocks, while favoring securities that we consider proxies for the price of gold. - -------- * These figures assume the immediate reinvestment of all dividends and distri- butions and do not give effect to the deduction of the Fund's sales load. (See the "Investment Results" section of the report for further information.) 6 SoGen International Fund SCHEDULE OF INVESTMENTS MARCH 31, 1999
Number Cost Value of Shares (Note 1) (Note 1) --------- -------- -------- Common and Preferred Stocks--U.S. Gold Related (1.96%) 727,500 Freeport McMoRan Copper & Gold Inc., Preferred Series "C' (d).... $ 24,477,371 $ 9,457,500 600,000 Freeport McMoRan Copper & Gold Inc., Preferred Series "B' (d).... 21,347,115 9,187,500 485,000 Freeport McMoRan Copper & Gold Inc., Preferred Series "D' (d).... 10,022,366 6,305,000 7,182 Case, Pomeroy & Co., Inc. Class "A'............................... 7,110,698 7,864,290 295,000 Newmont Mining Corporation......... 10,713,856 5,162,500 315,000 Homestake Mining Company........... 5,930,021 2,716,875 -------------- -------------- 79,601,427 40,693,665 -------------- -------------- Metals and Minerals (0.12%) 50,000 Reynolds Metals Company............ 2,379,868 2,415,625 -------------- -------------- Energy (3.49%) 3,705,000 San Juan Basin Royalty Trust (c)... 25,078,754 24,314,063 285,000 Murphy Oil Corporation............. 12,374,370 11,827,500 145,000 Burlington Resources Inc. ......... 4,975,896 5,790,938 415,000 North European Oil Royalty Trust... 6,537,312 5,550,625 1,245,000 Kaneb Services, Inc. (a)........... 4,318,833 5,057,813 350,000 ENSCO International Incorporated... 2,832,538 4,659,375 175,000 Weatherford International, Inc. (a)............................... 3,938,918 4,571,875 350,000 Rowan Companies, Inc. (a).......... 2,334,326 4,440,625 40,000 Sealed Air Corporation $2 Pfd. "A'............................... 1,420,642 1,980,000 35,000 Tosco Financing Trust $2.875 Conv. Pfd. (b).......................... 1,905,313 1,688,750 75,000 Patina Oil & Gas Corporation $1.78 Conv. Pfd......................... 1,993,232 1,443,750 250,241 The Home-Stake Oil & Gas Company (c)............................... 825,100 985,950 -------------- -------------- 68,535,234 72,311,264 -------------- -------------- Forest Products (2.72%) 675,000 Rayonier Inc. ..................... 22,718,215 27,042,188 615,000 Greif Bros. Corporation Class "A' (c)............................... 11,017,026 13,530,000 500,000 Longview Fibre Company............. 7,764,907 5,781,250 225,000 Georgia-Pacific Corporation, Timber Group............................. 4,846,035 5,048,438 145,000 Deltic Timber Corporation.......... 2,668,634 3,443,750 54,000 Plum Creek Timber Company, L.P..... 213,222 1,539,000 -------------- -------------- 49,228,039 56,384,626 -------------- -------------- Agriculture (0.44%) 100,000 Monsanto Company................... 4,272,269 4,593,750 75,000 Deere & Company.................... 1,085,028 2,896,875 60,000 Tejon Ranch Company................ 1,216,287 993,750 497 J.G. Boswell Company............... 573,840 569,065 -------------- -------------- 7,147,424 9,053,440 -------------- -------------- Automotive (0.34%) 300,000 Bandag Incorporated, Class "A'..... 15,255,998 7,125,000 -------------- -------------- Building Materials (0.11%) 215,000 Justin Industries.................. 2,957,812 2,365,000 -------------- -------------- Capital Goods (1.72%) 445,000 Woodward Governor Company.......... 8,989,190 11,125,000 345,000 Blount International, Inc. Class "A'............................... 5,944,977 9,961,875 500,000 Kaiser Ventures Inc. (a)........... 6,163,495 5,218,750 95,000 The Manitowoc Company, Inc......... 1,140,415 3,978,125
7 SoGen International Fund SCHEDULE OF INVESTMENTS MARCH 31, 1999
Number Cost Value of Shares (Note 1) (Note 1) --------- -------- -------- Common and Preferred Stocks--U.S. (continued) Capital Goods (continued) 4,805 Conbraco Industries, Inc. (e)...... $ 1,568,050 $ 2,594,700 70,000 Tennant Company.................... 1,766,194 2,397,500 112,500 MFRI, Inc. (a)..................... 615,940 351,563 -------------- -------------- 26,188,261 35,627,513 -------------- -------------- Specialty Chemicals (0.78%) 2,323,500 Lawter International, Inc. (c)..... 27,446,796 16,264,500 -------------- -------------- Transportation (0.35%) 35,000 AMR Corporation (a)................ 1,253,452 2,049,687 55,000 Burlington Northern Santa Fe Corporation....................... 1,458,633 1,808,125 115,468 Heartland Express, Inc. (a)........ 194,998 1,753,670 55,000 Florida East Coast Industries, Inc............................... 979,804 1,646,562 -------------- -------------- 3,886,887 7,258,044 -------------- -------------- Electronics (0.68%) 500,000 UCAR International, Inc............ 8,951,145 7,062,500 345,000 BEI Technologies Inc............... 1,971,186 3,708,750 125,000 Applied Power Inc. Class "A'....... 1,706,289 3,406,250 -------------- -------------- 12,628,620 14,177,500 -------------- -------------- Technology (1.78%) 425,000 NCR Corporation (a)................ 12,002,276 21,250,000 335,000 Scott Technologies Inc. (a)........ 4,877,360 5,820,625 200,000 Wang Laboratories Inc.............. 4,091,565 3,925,000 275,000 Evans & Sutherland Computer Corporation (a)................... 6,977,838 3,300,000 200,000 Aydin Corporation (a).............. 2,114,513 2,637,500 -------------- -------------- 30,063,552 36,933,125 -------------- -------------- Consumer Products (2.90%) 765,000 Dole Food Company, Inc. ........... 22,214,912 22,758,750 196,647 Allen Organ Company, Class "B'..... 6,223,084 7,472,586 500,000 Sturm, Ruger & Company, Inc........ 7,200,561 5,000,000 185,000 St. John Knits, Inc. .............. 2,988,504 4,879,375 75,000 Adolph Coors Company, Class "B'.... 1,461,900 4,050,000 165,000 Jostens, Inc. ..................... 3,232,860 3,506,250 150,000 Furniture Brands International, Inc. (a).......................... 923,625 3,318,750 165,000 Polaroid Corporation............... 4,196,261 3,310,312 700,000 The Topps Company, Inc. (a)........ 3,831,713 3,062,500 200,000 A.T. Cross Company, Class "A'...... 2,508,927 1,462,500 177,300 Baldwin Piano & Organ Company (c).. 1,712,676 1,418,400 -------------- -------------- 56,495,023 60,239,423 -------------- -------------- Distribution (0.41%) 800,000 Hancock Fabrics, Inc............... 7,671,312 5,050,000 143,088 Weyco Group Inc. .................. 1,457,019 3,434,112 -------------- -------------- 9,128,331 8,484,112 -------------- -------------- Health Care (0.03%) 400,000 BEI Medical Systems Inc. (a)(c).... 681,560 600,000 -------------- --------------
8 SoGen International Fund SCHEDULE OF INVESTMENTS MARCH 31, 1999
Number Cost Value of Shares (Note 1) (Note 1) --------- -------- -------- Common and Preferred Stocks--U.S. (continued) Media (1.32%) 355,000 GC Companies, Inc. (a)............. $ 11,880,672 $ 11,160,313 445,000 United States Satellite Broadcasting Company, Inc. Class "A' (a)........................... 4,367,717 7,620,625 100,000 Pulitzer Inc....................... 1,249,577 4,043,750 100,000 Hearst-Argyle Television, Inc. (a)............................... 583,693 2,462,500 34,924 Mills Music Trust (c)(e)........... 1,055,337 1,431,884 217,000 Integrity Incorporated, Class "A' (a)(c)............................ 1,077,040 759,500 -------------- -------------- 20,214,036 27,478,572 -------------- -------------- Services (2.70%) 1,535,000 Manpower Inc. ..................... 51,057,293 35,880,625 725,000 UniFirst Corporation (c)........... 10,238,952 15,315,625 155,000 Borg-Warner Security Corporation (a)............................... 2,731,925 2,596,250 79,792 KinderCare Learning Centers, Inc. (a)............................... 1,024,327 2,234,176 -------------- -------------- 65,052,497 56,026,676 -------------- -------------- Financial Companies (0.35%) 115,000 Leucadia National Corporation...... 3,705,129 3,478,750 127,500 East Texas Financial Services, Inc. (c)............................... 959,375 1,402,500 77,500 Redwood Financial, Inc. (a)(c)..... 715,313 1,036,562 15,113 Metairie Bank and Trust Company (e)............................... 254,172 513,842 45,000 First Federal Financial Bancorp, Inc. (c).......................... 490,100 483,750 20,000 Catskill Financial Corporation..... 210,000 303,750 -------------- -------------- 6,334,089 7,219,154 -------------- -------------- Utilities (1.08%) 210,000 CalEnergy Capital Trust 6 1/2% Conv. Pfd. (b).................... 10,076,250 9,397,500 25,000 CalEnergy Capital Trust 6 1/2% Conv. Pfd......................... 1,070,875 1,118,750 200,000 Midamerican Energy Holdings Co..... 3,728,090 5,600,000 60,000 The Montana Power Company.......... 1,277,675 4,413,750 65,000 IdaCorp Inc. ...................... 1,604,025 1,909,375 -------------- -------------- 17,756,915 22,439,375 -------------- -------------- Real Estate (2.80%) 600,000 Crescent Real Estate Equities Company........................... 9,350,294 12,900,000 556,896 Archstone Communities Trust........ 9,435,782 11,207,529 435,000 Security Capital European Realty (e)............................... 8,699,990 8,700,000 293,450 Security Capital Group, Inc. Class "B'............................... 4,759,994 3,924,894 175,000 Security Capital U.S. Realty SICAF............................. 1,949,581 1,373,750 500,000 Catellus Development Corporation (a)............................... 3,884,086 6,687,501 303,625 Alico, Inc. ....................... 5,959,497 4,630,281 197,739 Regency Realty Corp................ 4,625,320 3,707,615 235,000 Price Enterprises, Inc. 8 3/4% Pfd., Series "A'.................. 2,707,118 3,422,188 41,197 Price Enterprises, Inc............. 114,255 229,158 50,000 Prologis Trust Conv. 7% Pfd., Series "B'........................ 1,193,710 1,271,875 -------------- -------------- 52,679,627 58,054,791 -------------- -------------- Common and Preferred Stocks--Non U.S. Gold Related (3.13%) 3,535 Bank for International Settlements (U.S. Tranche).................... 18,548,191 19,880,345 2,475 Bank for International Settlements (French Tranche).................. 12,734,695 10,096,923 585,000 Franco-Nevada Mining Corp. Ltd..... 7,325,495 9,265,408 165,000 Euro-Nevada Mining Corp. Ltd. ..... 133,798 2,203,280
9 SoGen International Fund SCHEDULE OF INVESTMENTS MARCH 31, 1999
Number Cost Value of Shares (Note 1) (Note 1) --------- -------- -------- Common and Preferred Stocks--Non U.S. (continued) Gold Related (continued) 1,000,000 Gold Fields Limited................ $ 8,079,820 $ 5,771,104 750,000 Pan American Silver Corp. (a)...... 2,579,121 3,926,441 575,000 Meridian Gold Inc. (a)............. 2,086,705 3,315,109 625,000 Harmony Gold Mining Company Ltd. .. 2,988,761 2,932,224 550,000 Driefontein Consolidated Ltd. ADR.. 4,834,608 2,200,000 2,500,000 Normandy Mining Limited............ 3,000,483 2,005,132 155,000 Placer Dome Inc. .................. 2,672,346 1,734,063 407,250 St. Helena Gold Mines Ltd. ADR..... 3,408,636 967,219 95,250 St. Helena Gold Mines Ltd.......... 666,203 247,403 1,428,590 Compania Minera Arcata S.A. ....... 1,147,893 450,051 -------------- -------------- 70,206,755 64,994,702 -------------- -------------- United Kingdom (2.09%) 4,500,000 Antofagasta Holdings plc (21)...... 19,736,337 18,606,510 915,000 Lonmin plc (21).................... 4,866,145 6,703,784 3,000,000 Lonrho Africa plc (21)............. 4,564,749 2,538,900 3,605,000 McBride plc (12)................... 9,611,210 5,927,485 2,725,000 Royal Doulton plc (12)............. 10,072,500 4,129,138 235,000 Scottish Media Group plc (15)...... 1,712,987 3,278,687 500,000 IMI plc (7)........................ 2,115,191 2,123,810 -------------- -------------- 52,679,119 43,308,314 -------------- -------------- Finland (0.30%) 86,950 Vaisala Oy A (11).................. 2,938,395 6,287,333 -------------- -------------- Sweden (0.84%) 245,000 Investor AB "B' (20)............... 9,949,201 10,707,392 535,000 IRO AB (7)......................... 5,641,561 4,416,496 500,000 Gorthon Lines AB "B' (9)........... 2,602,502 1,942,384 181,000 Bylock & Nordsjofrakt AB "B' (9)... 738,090 340,585 -------------- -------------- 18,931,354 17,406,857 -------------- -------------- Norway (0.32%) 552,300 Schibsted ASA (15)................. 6,272,386 6,563,449 -------------- -------------- Denmark (0.52%) 225,000 Carlsberg International A/S, "B' (12).............................. 11,883,073 9,072,712 15,000 Kobenhavns Lufthavne A/S (9)....... 660,492 1,594,796 -------------- -------------- 12,543,565 10,667,508 -------------- -------------- Netherlands (1.16%) 85,000 Koninklijke Philips Electronics NV (10).............................. 2,398,670 7,007,188 275,000 Holdingmaatschappij de Telegraaf, NV (15)........................... 2,087,913 6,930,134 318,500 Apothekers Cooperatie OPG U.A. (14).............................. 7,826,348 6,806,074 265,000 European City Estates (c)(19)...... 3,906,649 3,289,014 -------------- -------------- 16,219,580 24,032,410 -------------- -------------- Belgium (0.37%) 25,000 Deceuninck Plastics Industries SA (6)............................... 2,756,148 7,732,826 -------------- --------------
10 SoGen International Fund SCHEDULE OF INVESTMENTS MARCH 31, 1999
Number Cost Value of Shares (Note 1) (Note 1) --------- -------- -------- Common and Preferred Stocks--Non U.S. (continued) Germany (5.19%) 127,750 Buderus AG (c)(7).................. $ 55,854,276 $ 41,224,382 20,500 Axel Springer Verlag AG (15)....... 8,969,120 19,690,916 135,000 Bertelsmann AG D.R.C. (15)......... 16,802,494 16,631,028 325,000 Bayer AG (8)....................... 6,519,726 12,083,553 250,000 Hornbach Holding AG Pfd. (13)...... 18,126,551 9,578,344 21,500 Sudzucker AG Pfd. (4).............. 8,920,153 7,541,259 18,000 Signalbau Huber AG Pfd. (9)........ 2,256,522 961,612 -------------- -------------- 117,448,842 107,711,094 -------------- -------------- France (7.77%) 200,000 Legrand ADP (7).................... 15,440,898 24,175,200 61,950 Sagem ADP (10)..................... 18,938,326 21,060,754 54,459 Promodes C.I. (13)................. 2,206,593 20,747,531 42,000 Eurafrance (20).................... 16,574,225 20,171,182 16,250 Taittinger C.I. (12)............... 4,109,200 6,752,058 1,682 Taittinger (12).................... 518,284 1,052,873 26,888 Societe Sucriere de Pithiviers-le- Vieil (c)(4)...................... 10,436,373 9,663,285 65,000 Elf Aquitaine (2).................. 4,470,992 8,825,027 118,500 Gaumont SA (15).................... 6,109,144 7,545,576 30,000 Vivendi (18)....................... 3,079,828 7,378,832 163,201 Emin Leydier (3)................... 8,351,488 6,710,731 70,579 NSC Groupe (c)(7).................. 12,515,544 5,979,532 145,000 Eramet (1)......................... 7,833,397 5,242,457 43,500 Sabeton SA (c)(20)................. 5,905,048 5,140,737 75,000 Crometal (7)....................... 5,059,728 3,642,469 50,000 C.G.D.E. Michelin "B' (5).......... 2,203,862 2,242,142 39,048 Conflandey (1)..................... 1,873,429 1,364,997 10,479 Robertet SA C.I. (12).............. 781,686 1,176,184 5,112 Robertet SA (12)................... 527,638 628,952 7,500 Societe Francaise des Papiers Peints (12)....................... 1,113,969 898,476 8,500 Marie Brizard et Roger International SA (12)............. 1,787,269 610,963 23,992 Precia SA (7)...................... 1,153,636 216,210 -------------- -------------- 130,990,557 161,226,168 -------------- -------------- Switzerland (5.29%) 43,950 Kuhne & Nagel International AG Bearer (9)........................ 26,824,359 34,143,417 70,000 Societe Generale d'Affichage D.R.C. (15).............................. 24,670,179 27,426,873 64,500 Sika Finanz AG Bearer (6).......... 15,801,764 17,189,252 41,500 Edipresse SA Bearer (15)........... 10,853,695 9,531,852 3,000 Lindt & Sprungli AG PC (12)........ 2,661,221 8,106,465 4,150 Nestle SA Registered (12).......... 5,277,735 7,538,573 10,000 SAirgroup D.R.C. (a)(9)............ 619,946 2,151,591 15,000 Vetropack Holding AG Bearer (12)... 3,101,361 1,823,955 30,000 Pelikan Holding AG Bearer (a)(12).. 2,797,748 1,803,688 -------------- -------------- 92,608,008 109,715,666 -------------- -------------- Austria (0.14%) 70,000 Flughafen Wien AG (9).............. 2,910,556 2,959,951 -------------- -------------- Italy (0.31%) 8,150,000 Montedison SpA Non Convertible Savings Shares (21)............... 3,911,487 6,517,753 -------------- --------------
11 SoGen International Fund SCHEDULE OF INVESTMENTS MARCH 31, 1999
Number Cost Value of Shares (Note 1) (Note 1) --------- -------- -------- Common and Preferred Stocks--Non U.S. (continued) Spain and Portugal (0.24%) 185,000 Espirito Santo Financial Group SA (17).............................. $ 3,130,994 $ 2,925,312 10,000 Corporacion Financiera Alba SA (20).............................. 691,324 1,430,006 65,000 Compania de Celulose do Caima SA (3)............................... 1,182,050 698,706 -------------- -------------- 5,004,368 5,054,024 -------------- -------------- Greece (0.02%) 74,990 H. Benrubi & Fils SA (12).......... 256,424 423,441 -------------- -------------- Israel (0.17%) 650,000 The Israel Land Development Company Ltd. (21)......................... 2,511,293 3,548,167 -------------- -------------- Commonwealth of Independent States (0.04%) 556,624 Firebird Fund, L.P. (a)(b)(e)(22).. 1,000,000 818,488 -------------- -------------- Japan (11.17%) 1,000,000 Fuji Photo Film Co., Ltd. (12)..... 24,615,338 37,737,438 265,000 Secom Co., Ltd. (16)............... 14,490,872 25,045,698 145,000 Toho Co., Ltd. (15)................ 19,610,428 19,603,673 305,000 Ito-Yokado Co., Ltd. (13).......... 14,346,167 19,577,138 800,000 Shimano Inc. (12).................. 15,386,134 19,441,520 3,105,000 The Nichido Fire & Marine Insurance Co., Ltd. (17).................... 20,086,002 18,151,624 4,000,000 The Dai-Tokyo Fire & Marine Insurance Co., Ltd. (17).......... 23,146,240 14,252,622 2,625,000 Nisshinbo Industries, Inc. (12).... 20,255,676 10,016,636 750,000 The Tokio Marine & Fire Insurance Co., Ltd. (17).................... 7,049,428 8,535,147 1,000,000 Hitachi, Ltd. (11)................. 7,616,128 7,387,441 2,250,000 Hanshin Electric Railway Co., Ltd. (9)............................... 9,288,539 7,107,358 500,000 Shiseido Company, Ltd. (12)........ 5,799,606 6,907,299 1,650,000 Okumura Corporation (7)............ 7,976,102 6,754,833 1,905,000 Aida Engineering, Ltd. (7)......... 12,638,683 6,498,968 445,000 Chofu Seisakusho Co., Ltd. (12).... 8,505,634 5,652,698 1,450,000 The Dowa Fire & Marine Insurance Co., Ltd. (17).................... 7,172,846 4,946,721 2,350,000 Iino Kaiun Kaisha, Ltd. (9)........ 9,241,772 4,473,740 1,000,000 The Koa Fire & Marine Insurance Co., Ltd. (17).................... 5,871,932 2,998,779 100,000 Asatsu Inc. (15)................... 3,559,632 2,796,614 385,000 Shoei Co., Ltd. (20)............... 2,927,600 2,004,212 650,000 Nittetsu Mining Co., Ltd. (1)...... 5,458,538 1,779,472 -------------- -------------- 245,043,297 231,669,631 -------------- -------------- Hong Kong (1.94%) 97,199,864 CDL Hotels International Limited (19).............................. 36,828,677 30,103,322 21,850,000 Shaw Brothers (Hong Kong) Limited (15).............................. 24,515,109 10,150,594 -------------- -------------- 61,343,786 40,253,916 -------------- -------------- Singapore and Malaysia (0.51%) 3,500,000 Times Publishing Limited (15)...... 7,766,301 5,269,253 3,665,000 Delgro Corporation Ltd. (20)....... 8,902,559 4,817,342 650,000 Clipsal Industries Ltd. (6)........ 1,600,089 552,500 -------------- -------------- 18,268,949 10,639,095 -------------- -------------- Thailand (0.12%) 577,000 The Oriental Hotel Public Company Limited (19)...................... 2,636,472 2,517,707 -------------- --------------
12 SoGen International Fund SCHEDULE OF INVESTMENTS MARCH 31, 1999
Number Cost Value of Shares (Note 1) (Note 1) --------- -------- -------- Common and Preferred Stocks--Non U.S. (continued) Australia and New Zealand (2.28%) 3,325,000 Wilson & Horton Limited (15)...... $ 17,124,302 $ 14,223,283 12,209,867 Carter Holt Harvey Limited (3).... 18,750,322 11,519,375 20,801,249 Shortland Properties Limited (c)(19).......................... 8,985,919 6,913,316 7,575,000 Spotless Services Limited (16).... 3,885,971 6,152,701 10,000,000 Tasman Agriculture Limited (c)(4)........................... 6,097,469 3,752,350 9,350,000 Evergreen Forests Limited (a)(c)(3)........................ 3,562,680 2,105,068 2,642,222 Evergreen Forests Limited Conv. Note (a)(3)...................... 1,391,526 1,430,527 991,000 The Colonial Motor Company Limited (13)............................. 888,719 1,189,945 -------------- -------------- 60,686,908 47,286,565 -------------- -------------- Canada (1.10%) 965,000 Canadian Pacific Limited (21)..... 16,914,508 18,757,187 400,000 Noranda, Inc. (21)................ 5,386,660 4,121,935 -------------- -------------- 22,301,168 22,879,122 -------------- -------------- Mexico (0.93%) 6,175,000 Industrias Penoles, S.A. de C.V. (1).............................. 19,284,893 19,264,443 -------------- -------------- Argentina (0.23%) 5,471,500 Ledesma S.A.A.I. (4).............. 6,241,734 2,682,953 1,850,000 Siderca S.A.I.C. (2).............. 1,375,056 2,017,943 -------------- -------------- 7,616,790 4,700,896 -------------- -------------- Chile (0.21%) 443,400 Quinenco S.A. ADR (20)............ 3,283,776 4,406,288 -------------- -------------- South Africa (0.04%) 100,000 Omni Media Corporation (15)....... 643,273 894,481 -------------- -------------- Miscellaneous (0.78%) 375,000 Banco Latinoamericano de Exportaciones S.A., Class "E' (Bladex) (17).................... 10,617,937 9,750,000 375,000 Minorco ADR (1)................... 5,817,919 6,375,000 -------------- -------------- 16,435,856 16,125,000 -------------- -------------- Total Common and Preferred Stocks........................... 1,550,396,001 1,520,756,700 -------------- -------------- Principal Amount --------- Bonds, Notes and Convertible Bonds U.S. Dollar Convertible Bonds (4.55%) $ 1,000,000 NovaCare, Inc. 5 1/2% due 1/15/2000 (14)................... 972,314 708,750 5,320,000 Gold Mines of Kalgoorlie 7 1/2% due 2/28/2000 (1)................ 5,108,820 5,333,300 2,500,000 Medya International Ltd. 10% due 6/28/2001 (15)................... 2,178,763 1,687,500 2,500,000 International Container Terminal Services, Inc. 5% due 9/15/2001 (e)(9)........................... 2,285,109 1,821,875 6,000,000 International Container Terminal Services, Inc. 1 3/4% due 3/13/2004 (9).................... 5,265,066 5,100,000 6,000,000 Danka Business Systems plc 6 3/4% due 4/01/2002 (12)............... 3,650,272 3,120,000 1,610,000 Roy F. Weston, Inc. 7% due 4/15/2002 (7).................... 1,482,943 1,505,350 3,750,000 Pegasus Gold Inc. 6 1/4% due 4/30/2002 (a)(f)(1).............. 4,018,424 9,375 2,300,000 Pegasus Gold Inc. 6 1/4% due 4/30/2002 (a)(b)(f)(1)........... 2,021,340 5,750 3,325,000 LUKINTER Finance BV 3 1/2% due 5/06/2002 (2).................... 1,121,486 1,928,500 7,000,000 Cetus Corp. 5 1/4% due 5/21/2002 (14)............................. 6,779,576 6,912,500 3,665,000 Coeur d'Alene Mines Corporation 6% due 6/10/2002 (1)................ 3,390,015 2,272,300 6,000,000 Coeur d'Alene Mines Corporation 6 3/8% due 1/31/2004 (1)........... 5,952,303 3,532,500 3,500,000 TingYi (C.I.) Holdings 1 5/8% due 7/17/2002 (12)................... 2,195,065 2,423,750
13 SoGen International Fund SCHEDULE OF INVESTMENTS MARCH 31, 1999
Principal Cost Value Amount (Note 1) (Note 1) --------- -------- -------- Bonds, Notes and Convertible Bonds (continued) U.S. Dollar Convertible Bonds (continued) $ 3,000,000 Ashanti Goldfields Company Limited 5 1/2% due 3/15/2003 (b)(1)...... $ 2,468,119 $ 2,610,000 5,000,000 Nine West Group 5 1/2% due 7/15/2003 (13)................... 4,392,968 4,737,500 5,550,000 IRSA Inversiones y Representaciones S.A. 4 1/2% due 8/02/2003 (19)................... 5,684,706 5,633,250 1,500,000 Agnico Eagle Mines Limited 3 1/2% due 1/27/2004 (1)................ 1,163,262 1,005,000 3,750,000 Halter Marine Group Inc. 4 1/2% due 9/15/2004 (7)................ 2,668,865 1,964,063 4,420,000 Battle Mountain Gold Company 6% due 1/04/2005 (1)................ 3,511,480 3,315,000 11,500,000 Scandinavian Broadcasting System SA 7 1/4% due 8/01/2005 (15)..... 10,772,577 13,138,750 11,935,000 P.T. Inti Indorayon Utama 7% due 5/02/2006 (3).................... 9,793,715 596,750 7,145,000 Samsung Electronics Co. Ltd. 0% due 12/31/2007 (a)(10)........... 5,585,519 7,180,725 3,500,000 LG Electronics Inc. 1/4% due 12/31/2007 (10).................. 2,511,069 3,517,500 4,450,000 Evans & Sutherland Computer Corporation 6% due 3/01/2012 (11)............................. 3,528,180 4,055,063 11,824,000 Air & Water Technologies Corp. 8% due 5/15/2015 (7)................ 10,048,758 10,168,640 -------------- -------------- 108,550,714 94,283,691 -------------- -------------- U.S. Dollar Bonds and Notes (6.53%) 3,800,000 Cemex SA 10% due 11/05/1999 (6)... 3,796,837 3,857,000 1,500,000 Tubos de Acero de Mexico, S.A. 13 3/4% due 12/08/1999 (2).......... 1,462,762 1,552,500 2,000,000 P.T. Inti Indorayon Utama 9 1/8% due 10/15/2000 (3)............... 1,873,934 405,000 1,000,000 Republic New York Corporation 9 3/4% due 12/01/2000 (17)......... 1,000,000 1,064,097 5,550,000 USAir Group, Inc. 9 5/8% due 2/02/2001 (9).................... 4,950,388 5,711,366 5,000,000 P.T. Pabrik Kertas Tjiwi-Kimia 13 1/4% due 8/01/2001 (3)........... 5,042,446 3,725,000 4,000,000 Florsheim Group Inc. 12 3/4% due 9/01/2002 (13)................... 3,735,895 4,252,500 3,000,000 Golden Books Family Entertainment, Inc. 7.65% due 9/15/2002 (f)(15).......................... 2,571,229 1,290,000 5,392,000 Pamida Holdings Corp. 11 3/4% due 3/15/2003 (13)................... 4,931,912 4,879,760 8,000,000 The Southland Corporation 5% due 12/15/2003 (13).................. 6,532,667 7,000,000 4,589,000 The Southland Corporation 4% due 6/15/2004 (13)................... 3,255,593 3,510,585 3,000,000 Anacomp, Inc. 10 7/8% due 4/01/2004 (11)................... 3,004,933 3,120,000 500,000 Anacomp, Inc. 10 7/8% due 4/01/2004 (b)(11)................ 520,000 520,000 1,000,000 UCAR Global Enterprises 12% due 1/15/2005 Series "B' (10)........ 1,005,000 1,067,500 1,500,000 Hollinger International Publishing 8 5/8% due 3/15/2005 (15)........ 1,575,000 1,582,500 1,000,000 Hollinger International Publishing 9 1/4% due 3/15/2007 (15)........ 1,065,000 1,050,000 750,000 Polaroid Corporation 11 1/2% due 2/15/2006 (b)(12)................ 750,000 780,000 12,000,000 Riverwood International Corporation 10 1/4% due 4/01/2006 (3).............................. 11,945,499 12,420,000 18,000,000 Riverwood International Corporation 10 7/8% due 4/01/2008 (3).............................. 17,862,810 17,505,000 3,500,000 Wharf International Finance, Ltd. 7 5/8% due 3/13/2007 (17)........ 2,417,832 2,779,595 1,000,000 Imperial Holly Corporation 9 3/4% due 12/15/2007 (4)............... 1,000,000 1,012,500 2,250,000 AMSC Acquisition Co. Inc. 12 1/4% due 4/01/2008 (11)............... 2,351,169 1,158,750 6,000,000 Grupo Televisa 13 1/4% due 5/15/2008 (0% @ 3/31/1999) (a)(15).......................... 4,183,921 5,055,000 1,500,000 Domino's Inc. 10 3/8% due 1/15/2009 (b)(12)................ 1,497,540 1,556,250 6,750,000 Federal Republic of Brazil "C' 8% due 4/15/2014 (23)............... 3,496,462 5,072,414 5,000,000 Federal Republic of Brazil Par ZL 5 1/2% due 4/15/2024 (23)........ 2,430,199 3,037,500 5,000,000 Federal Republic of Brazil Disc. ZL FRN due 4/15/2024 (6.125% @ 3/31/1999) (23)........ 3,113,087 3,125,000 6,000,000 United Mexican States Disc. FRN "A' due 12/31/2019 (6.11562% @ 3/31/1999) (23)...... 5,053,828 5,115,000 3,500,000 United Mexican States Disc. FRN "B' due 12/31/2019 (6.03875% @ 3/31/1999) (23)...... 2,827,458 2,983,750 500,000 United Mexican States Disc. FRN "D' due 12/31/2019 (6.09750% @ 3/31/1999) (23)...... 374,123 426,250 2,000,000 Republic of Bulgaria Disc. FRN "A' due 7/28/2024 (5.8750% @ 3/31/1999) (23)....... 1,113,964 1,360,000 10,000,000 Bangkok Bank Public Co. 9.025% due 3/15/2029 (b)(17)................ 6,027,527 7,050,000
14 SoGen International Fund SCHEDULE OF INVESTMENTS MARCH 31, 1999
Principal Cost Value Amount (Note 1) (Note 1) --------- -------- -------- Bonds, Notes and Convertible Bonds (continued) U.S. Dollar Bonds and Notes (continued) $ 5,500,000 Bergen Bank Floating Rate Perpetual Notes (5.1875% @ 3/31/1999) (17)........... $ 3,888,750 $ 3,991,075 3,500,000 Den Norske Bank Floating Rate Perpetual Notes (5.3375% @ 3/31/1999) (17)...................... 2,610,000 2,527,000 3,170,000 Den Norske Bank Floating Rate Perpetual Notes (5.25% @ 3/31/1999) (17).. 2,059,625 2,317,270 13,600,000 Christiania Bank Floating Rate Perpetual Notes (5.625% @ 3/31/1999) (17)...................... 9,590,750 10,149,680 5,200 Posgold Finance Ltd. 2.65% Gold Denominated Note due 7/15/2004 (b)(d)(e)(1).............. 2,028,988 1,451,323 -------------- -------------- 132,947,128 135,461,165 -------------- -------------- U.S. Treasury Notes (9.78%) 10,000,000 U.S. Treasury Note 3 5/8% due 7/15/2002 (23)........ 10,019,830 10,191,000 20,000,000 U.S. Treasury Note 5 7/8% due 2/15/2004 (23)........ 19,288,293 20,593,760 30,000,000 U.S. Treasury Note 7 1/2% due 2/15/2005 (23)........ 31,716,094 33,271,890 30,000,000 U.S. Treasury Note 5 5/8% due 2/15/2006 (23)........ 28,782,340 30,431,250 40,000,000 U.S. Treasury Note 3 3/8% due 1/15/2007 (23)........ 40,133,094 39,932,000 35,000,000 U.S. Treasury Note 6 1/4% due 2/15/2007 (23)........ 35,253,602 36,837,500 20,000,000 U.S. Treasury Zero Coupon Strip due 11/15/2007 (a)(23)................... 12,076,836 12,527,700 10,000,000 U.S. Treasury Note 8 3/4% due 11/15/2008 (23)....... 11,314,687 11,312,500 5,000,000 U.S. Treasury Note 11 1/4% due 2/15/2015 (23)........ 7,791,406 7,801,565 -------------- -------------- 196,376,182 202,899,165 -------------- -------------- Non U.S. Dollar Convertible Bonds (1.38%) CAD 3,500,000 InterTAN Inc. 9% due 8/30/2000 (13)............ 2,576,052 3,867,628 CAD 1,600,000 Noranda Inc. 5% due 4/30/2007 (21)............ 1,026,988 943,671 FRF 89,136,060 Immobiliere Hoteliere 5% due 1/01/2001 (19)........ 12,923,624 8,528,508 JPY 350,000,000 Hanshin Electric Railway Co., Ltd. 1 1/2% due 9/30/2005 (9)............. 2,732,433 2,850,946 GBP 8,500,000 Berisford plc 5% due 1/31/2015 (12)............ 8,019,284 12,468,820 -------------- -------------- 27,278,381 28,659,573 -------------- -------------- Non U.S. Dollar Bonds and Notes (1.38%) CAD 2,500,000 Bell Canada 8 1/2% due 6/09/2003 (18)............ 1,726,927 1,833,789 DEM 10,340,000 Air Canada Variable Rate Perpetual Notes (4 5/8% @ 3/31/1999) (9)............ 4,111,453 2,955,590 FRF 65,685,000 United Mexican States Par 6.63% due 12/31/2019 (23)...................... 8,619,133 8,348,552 CHF 6,000,000 Air Canada 6 1/4% Perpetual Notes (9)................. 1,877,669 3,891,103 CHF 4,100,000 Scandinavian Airlines System Variable Rate Perpetual Notes (3 5/8% @ 3/31/1999) (9).. 1,920,638 2,194,994 NZD 5,000,000 Trans Power Finance Limited 8% due 3/15/2002 (18)..... 3,232,769 2,840,897 NZD 6,581,000 Telecom Corp. of New Zealand 9 1/4% due 7/01/2002 (18)............ 3,992,909 3,840,832 NZD 2,850,000 State Bank of New South Wales 8% due 4/01/2003 (17)...................... 1,657,282 1,621,317 NZD 2,000,000 Telecom Corp. of New Zealand 7 1/2% due 7/14/2003 (18)............ 1,187,526 1,116,994 -------------- -------------- 28,326,306 28,644,068 -------------- -------------- Total Bonds, Notes and Convertible Bonds......... 493,478,711 489,947,662 -------------- -------------- Short-Term Investments (2.07%) $ 38,803,000 Nestle Capital Corp. 4.73% due 4/01/1999............. 38,803,000 38,803,000 3,615,000 Lucent Technologies Inc. 4.80% due 4/13/1999....... 3,609,216 3,609,216 600,000 The Southland Corporation 4.87% due 4/29/1999....... 597,727 597,727 -------------- -------------- Total Short-Term Investments............... 43,009,943 43,009,943 -------------- -------------- Total Investments (98.98%).................. $2,086,884,655* 2,053,714,305** ============== Other assets in excess of liabilities (1.02%)....... 21,073,429 -------------- Net assets (100.00%)....... $2,074,787,734 ==============
15 SoGen International Fund NOTES TO SCHEDULE OF INVESTMENTS MARCH 31, 1999 (a) Non-income producing security. (b) Security is exempt from registration under the Securities Act of 1933 and may only be sold to qualified institutional buyers pursuant to Rule 144A under the Securities Act of 1933. (c) Affiliate as defined by the Investment Company Act of 1940. An affiliate is defined as a company in which the Fund directly or indirectly owns, controls, or holds power to vote 5% or more of the outstanding voting se- curities. Following is a summary of transactions with each such affiliate for the year ended March 31, 1999.
Purchases Sales Realized Dividend Affiliate Shares Cost Shares Cost Gain/Loss Income ------------------------------------------------------------------------------------- San Juan Basin Royalty Trust 55,000 $ 331,707 -- -- -- $1,967,236 The Home-Stake Oil & Gas Company -- -- -- -- -- 20,019 Greif Bros. Corporation Class "A' -- -- 25,000 $602,500 $314,782 299,280 Lawter International, Inc. -- -- -- -- -- 929,400 Baldwin Piano and Organ Company -- -- 34,700 487,450 (64,177) 2,120 BEI Medical Systems Inc. -- -- -- -- -- -- Mills Music Trust -- -- -- -- -- 135,666 Integrity Incorporated, Class "A' -- -- 83,000 824,375 (379,321) -- UniFirst Corporation -- -- 30,000 679,894 7,658 95,138 East Texas Financial Services, Inc. -- -- -- -- -- 25,500 Redwood Financial, Inc. -- -- -- -- -- -- First Federal Financial Bancorp, Inc. -- -- 4,000 43,900 24,098 12,880 Buderus AG 21,250 9,177,615 -- -- -- 1,345,296 Societe Sucriere de Pithiviers-le-Vieil 9,085 4,526,353 -- -- -- 288,968 NSC Groupe 4,079 481,623 -- -- -- 321,980 Sabeton SA 2,500 280,869 788 167,657 (73,147) 105,083 European City Estates 42,500 497,854 52,500 980,999 (330,701) 136,758 Shortland Properties Limited+ 8,052,833 3,792,044 -- -- -- 366,400 Tasman Agriculture Limited 750,000 222,593 -- -- -- 161,655 Evergreen Forests Limited -- -- -- -- -- --
+ Conversion from bond to stock on December 31, 1998. (d) Commodity-linked security whereby the coupon, dividend and/or redemption amount is linked to the price of an underlying commodity. (e) Security for which there are less than three market makers. (f) In default as to principal and interest. * At March 31, 1999 cost is substantially identical for both book and federal income tax purposes. ** Gross unrealized appreciation and depreciation of securities at March 31, 1999, based on cost for federal income tax purposes, were $281,493,775 and $314,669,875, respectively (net depreciation was $33,176,100).
Industry Foreign Currencies Classifications ------------------ ----------------------- CAD--Canadian Dollar (1) Metals & Minerals (13) Distribution FRF--French Franc (2) Energy (14) Health Care JPY--Japanese Yen (3) Forest Products (15) Media GBP--Pound Sterling (4) Agriculture (16) Services DEM--Deutsche Mark (5) Automotive (17) Financial Institutions CHF--Swiss Franc (6) Building Materials (18) Utilities NZD--New Zealand Dollar (7) Capital Goods (19) Real Estate (8) Chemicals (20) Holding Companies (9) Transportation (21) Conglomerate (10) Electronics (22) Investment Companies (11) Technology (23) Government Issues (12) Consumer Products
Bond Types ---------- FRN--Floating Rate Note "C'--Capitalization
- -------- See Notes to Financial Statements. 16 SoGen Overseas Fund SCHEDULE OF INVESTMENTS MARCH 31, 1999
Number Cost Value of Shares (Note 1) (Note 1) --------- -------- -------- Common and Preferred Stocks United Kingdom and Ireland (4.67%) 2,175,000 Antofagasta Holdings plc (21).......... $ 10,404,935 $ 8,993,147 700,000 Greencore Group plc (4)................ 1,918,345 2,455,294 1,500,000 Royal Doulton plc (12)................. 5,363,804 2,272,920 1,275,000 McBride plc (12)....................... 3,179,289 2,096,406 100,000 Scottish Media Group plc (15).......... 621,771 1,395,186 300,000 IMI plc (11)........................... 1,269,760 1,274,286 1,475,000 Lonrho Africa plc (21)................. 2,304,763 1,248,293 1,000,000 Aggregate Industries plc (6)........... 411,828 1,180,790 50,000 Lonmin plc (21)........................ 249,264 366,327 ------------ ------------ 25,723,759 21,282,649 ------------ ------------ Finland (0.11%) 7,000 Vaisala Oy A (11)...................... 197,492 506,168 ------------ ------------ Sweden (1.28%) 275,000 IRO AB (7)............................. 2,991,322 2,270,161 50,000 Investor AB "B' (20)................... 2,006,176 2,185,182 315,000 Gorthon Lines AB "B' (9)............... 1,614,821 1,223,702 90,500 Bylock & Nordsjofrakt AB "B' (9)....... 330,595 170,292 ------------ ------------ 6,942,914 5,849,337 ------------ ------------ Norway (0.39%) 101,400 Schibsted ASA (15)..................... 1,182,894 1,205,022 50,000 Smedvig ASA "A' (2).................... 538,409 558,670 ------------ ------------ 1,721,303 1,763,692 ------------ ------------ Denmark (0.43%) 35,000 Carlsberg International A/S "B' (12)... 1,529,829 1,411,311 5,000 Kobenhavns Lufthavne A/S (9)........... 217,588 531,599 ------------ ------------ 1,747,417 1,942,910 ------------ ------------ Netherlands (1.15%) 107,500 Apothekers Cooperatie OPG U.A. (14).... 2,870,525 2,297,184 100,000 European City Estates (19)............. 1,466,239 1,241,138 35,000 Holdingmaatschappij de Telegraaf NV (15).................................. 334,731 882,017 10,000 Koninklijke Philips Electronics N.V. (10).................................. 329,319 824,375 ------------ ------------ 5,000,814 5,244,714 ------------ ------------ Belgium (0.24%) 3,500 Deceuninck Plastics Industries SA (6).. 478,997 1,082,596 ------------ ------------ Germany (7.65%) 36,750 Buderus AG (7)......................... 15,780,463 11,859,069 7,500 Axel Springer Verlag AG (15)........... 3,165,398 7,203,994 118,500 Hornbach Holding AG Pfd. (13).......... 9,554,106 4,540,135 30,000 Bertelsmann AG D.R.C. (15)............. 3,940,740 3,695,784 200,000 Gerresheimer Glas AG (7)............... 2,918,934 3,291,713 7,000 Sudzucker AG Pfd. (12)................. 2,901,732 2,455,294 50,000 Bayer AG (8)........................... 1,121,799 1,859,008 ------------ ------------ 39,383,172 34,904,997 ------------ ------------
17 SoGen Overseas Fund SCHEDULE OF INVESTMENTS MARCH 31, 1999
Number Cost Value of Shares (Note 1) (Note 1) --------- -------- -------- Common and Preferred Stocks (continued) France (13.02%) 35,750 Sagem ADP (10)......................... $ 10,523,554 $ 12,153,704 70,000 Legrand ADP (7)........................ 6,362,815 8,461,320 23,800 Europe 1 Communication (15)............ 5,039,048 6,002,853 10,500 Eurafrance (20)........................ 4,152,458 5,042,796 9,250 Taittinger C.I. (12)................... 2,361,474 3,843,479 9,459 Promodes C.I. (13)..................... 1,161,445 3,603,645 90,000 Emin Leydier (3)....................... 6,627,150 3,700,748 18,000 Elf Aquitaine (2)...................... 1,213,940 2,443,854 5,750 Societe Sucriere de Pithiviers-le-Vieil (4)................................... 2,519,509 2,066,494 24,086 NSC Groupe (7)......................... 4,214,370 2,040,593 30,000 Gaumont SA (15)........................ 1,569,314 1,910,273 29,674 Rougier SA (3)......................... 2,339,735 1,345,078 10,000 Robertet SA (12)....................... 1,934,255 1,230,345 7,856 Robertet SA C.I. (12).................. 1,120,564 881,773 9,500 Sabeton SA (20)........................ 1,683,223 1,122,690 25,109 Conflandey (1)......................... 1,400,908 877,733 3,500 Vivendi (18)........................... 364,781 860,864 12,727 Crometal (7)........................... 840,806 618,103 15,572 Burelle SA (5)......................... 808,536 596,616 15,000 Eramet (1)............................. 698,215 542,323 ------------ ------------ 56,936,100 59,345,284 ------------ ------------ Switzerland (13.39%) 24,150 Kuhne & Nagel International AG Bearer (9)................................... 14,480,773 18,761,400 34,740 Societe Generale d'Affichage D.R.C. (15).................................. 13,189,367 13,611,565 1,875 Bank for International Settlements (U.S. Tranche) (17)................... 13,605,699 10,544,738 961 Bank for International Settlements (French Tranche) (17)................. 6,947,804 3,920,462 30,000 Edipresse SA Bearer (15)............... 6,299,295 6,890,495 17,500 Sika Finanz AG Bearer (6).............. 4,215,297 4,663,751 650 Lindt & Sprungli AG PC (12)............ 835,002 1,756,401 500 Nestle SA Registered (12).............. 619,844 908,262 ------------ ------------ 60,193,081 61,057,074 ------------ ------------ Austria (0.09%) 10,000 Flughafen Wien AG (9).................. 415,624 422,850 ------------ ------------ Italy (0.09%) 500,000 Montedison SpA Non Convertible Savings (21).................................. 248,522 399,862 ------------ ------------ Spain and Portugal (0.44%) 50,000 Espirito Santo Financial Group SA ADR (17).................................. 904,908 790,625 65,000 Compania de Celulose do Caima SA (3)... 1,168,943 698,706 100,000 Energia e Industrias Aragonesas SA (8)................................... 434,461 521,278 ------------ ------------ 2,508,312 2,010,609 ------------ ------------ Greece (0.00%) 10 H. Benrubi & Fils SA (12).............. 55 56 ------------ ------------ Turkey (0.18%) 45,000 Usas Ucak Servisi (16)................. 586,777 820,265 ------------ ------------ Israel (0.16%) 275,000 Super-Sol (13)......................... 529,949 723,280 ------------ ------------
18 SoGen Overseas Fund SCHEDULE OF INVESTMENTS MARCH 31, 1999
Number Cost Value of Shares (Note 1) (Note 1) --------- -------- -------- Common and Preferred Stocks (continued) Commonwealth of Independent States (0.70%) 672,461 Firebird Fund, L.P. (a)(b)(c)(22)...... $ 683,594 $ 934,587 10,265 Firebird Republics Fund, Ltd. Class "A' (a)(b)(c)(22)......................... 1,675,000 537,345 9,000 Baltic Republics Fund (a)(b)(c)(22).... 905,750 891,000 100,000 First NIS Regional Fund SICAF (b)(c)(22)............................ 1,000,000 450,000 5,000 Carl Marks Global Value Fund L.P. (a)(b)(c)(22)......................... 500,000 394,400 ------------ ------------ 4,764,344 3,207,332 ------------ ------------ Japan (22.09%) 1,575,000 The Nichido Fire & Marine Insurance Co., Ltd. (17)........................ 9,981,995 9,207,345 60,000 Toho Co., Ltd. (15).................... 7,960,117 8,111,865 300,000 Shimano Inc. (12)...................... 5,377,120 7,290,570 2,000,000 The Dai-Tokyo Fire & Marine Insurance Co., Ltd. (17)........................ 11,065,354 7,126,311 175,000 Fuji Photo Film Co., Ltd. (12)......... 4,211,631 6,604,052 1,450,000 Okumura Corporation (16)............... 7,366,406 5,936,065 1,500,000 Nisshinbo Industries, Inc. (12)........ 11,865,351 5,723,792 70,000 Ito-Yokado Co., Ltd. (13).............. 3,506,275 4,493,114 200,000 T. Hasegawa Co., Ltd. (12)............. 4,327,766 4,329,697 1,150,000 The Dowa Fire & Marine Insurance Co., Ltd. (17)............................. 5,272,174 3,923,262 300,000 Chofu Seisakusho Co., Ltd. (12)........ 5,122,117 3,810,807 785,000 Tachi-S Co., Ltd. (5).................. 7,443,822 3,636,861 677,430 Sotoh Co., Ltd. (12)................... 5,938,070 3,423,813 1,000,000 Aida Engineering, Ltd. (7)............. 6,423,804 3,411,532 35,000 Secom Co., Ltd. (16)................... 1,866,628 3,307,922 565,000 Shoei Co., Ltd. (20)................... 5,200,359 2,941,246 1,500,000 Iino Kaiun Kaisha, Ltd. (9)............ 4,441,515 2,855,579 415,000 Yomeishu Seizo Co., Ltd. (12).......... 2,614,647 2,481,995 30,000 Hitachi, Ltd. ADR (11)................. 2,559,278 2,182,500 200,000 Nitto Kohki Co., Ltd. (7).............. 1,774,036 2,156,425 550,000 The Koa Fire & Marine Insurance Co., Ltd. (17)............................. 3,009,791 1,649,328 450,000 Hanshin Electric Railway Co., Ltd. (9)................................... 1,458,188 1,421,472 100,000 Mandom Corp. (12)...................... 684,810 1,162,448 125,000 Sonton Food Industry Co., Ltd. (12).... 1,293,963 1,137,177 10,000 Hirose Electric Co., Ltd. (2).......... 524,210 833,930 10,000 Benesse Corporation (16)............... 272,556 806,132 275,000 Nittetsu Mining Co., Ltd. (1).......... 2,200,430 752,854 ------------ ------------ 123,762,413 100,718,094 ------------ ------------ South Korea (2.63%) 29,900 Nam Yang Dairy Products (12)........... 2,898,173 2,643,969 40,000 Nam Yang Dairy Products Pfd. (12)...... 645,588 1,955,990 73,050 Dong Ah Tire Industry Co., Ltd. (a)(5)................................ 4,471,482 2,565,978 85,000 Fursys Incorporated (12)............... 1,361,702 1,905,053 20,600 Daeduck Electronics Co., Ltd. (10)..... 857,575 1,534,507 18,540 Daeduck Industries (10)................ 705,240 1,344,792 1,500 Woong Jin Publishing Co., Ltd. (15).... 31,346 29,768 ------------ ------------ 10,971,106 11,980,057 ------------ ------------ Hong Kong (4.15%) 43,090,166 CDL Hotels International Limited (19).. 16,675,040 13,345,257 10,735,000 Shaw Brothers (Hong Kong) Limited (15).................................. 12,857,925 4,987,031 7,000,000 China-Hong Kong Photo Products Holdings Limited (12).......................... 1,663,594 596,183 ------------ ------------ 31,196,559 18,928,471 ------------ ------------
19 SoGen Overseas Fund SCHEDULE OF INVESTMENTS MARCH 31, 1999
Number Cost Value of Shares (Note 1) (Note 1) --------- -------- -------- Common and Preferred Stocks (continued) Singapore and Malaysia (2.30%) 1,000,000 Genting Berhad (c)(12)................. $ 2,278,895 $ 2,236,872 2,500,000 Delgro Corporation Ltd. (20)........... 4,927,583 3,286,045 1,650,000 Times Publishing Limited (15).......... 3,528,771 2,484,076 2,000,000 Clipsal Industries Ltd. (6)............ 2,950,171 1,700,000 2,000,000 Thakral Corporation Ltd. (13).......... 1,115,912 787,493 ------------ ------------ 14,801,332 10,494,486 ------------ ------------ Thailand (0.11%) 110,000 Oriental Hotel PCL (19)................ 482,186 479,979 ------------ ------------ Vietnam (0.12%) 162,900 The Lazard Vietnam Fund Limited (a)(b)(c)(22)......................... 448,873 407,250 42,800 The Vietnam Frontier Fund (a)(b)(c)(22)......................... 440,840 160,500 ------------ ------------ 889,713 567,750 ------------ ------------ India and Pakistan (0.09%) 10,000 The Spartek Emerging Opportunities of India Fund (a)(b)(c)(22).............. 1,035,000 411,400 ------------ ------------ Australia and New Zealand (4.89%) 1,574,314 Wilson & Horton Limited (15)........... 8,213,080 6,734,410 5,733,947 Carter Holt Harvey Limited (3)......... 9,441,835 5,409,681 8,526,499 Shortland Properties Limited (19)...... 4,241,883 2,833,791 3,350,000 Spotless Services Limited (16)......... 1,943,459 2,720,997 6,244,268 Tasman Agriculture Limited (4)......... 4,298,419 2,343,068 6,250,000 Evergreen Forests Limited (a)(3)....... 2,736,936 1,407,131 300,000 Radio Pacific Limited (15)............. 544,139 852,320 ------------ ------------ 31,419,751 22,301,398 ------------ ------------ Canada (0.72%) 100,000 Canadian Pacific Limited (21).......... 1,518,789 1,943,750 35,000 Franco-Nevada Mining Corp. Ltd. (24)... 460,543 554,341 100,000 Legacy Hotels REIT (19)................ 412,954 467,197 30,000 Noranda Inc. (21)...................... 369,281 309,145 ------------ ------------ 2,761,567 3,274,433 ------------ ------------ Mexico (1.83%) 2,650,000 Industrias Penoles, S.A. de C.V. (1)... 10,491,260 8,267,332 1,800,000 Grupo Fernandez Editores, S.A. de C.V. "B' (15).............................. 440,370 94,538 ------------ ------------ 10,931,630 8,361,870 ------------ ------------ Argentina (0.41%) 2,171,500 Ledesma S.A.A.I. (4)................... 3,024,536 1,064,796 450,000 Siderca S.A.I.C. (2)................... 265,818 490,851 280,290 Cresud S.A.C.I.F. y A. (4)............. 411,316 302,929 ------------ ------------ 3,701,670 1,858,576 ------------ ------------ South Africa (0.02%) 200,000 Stellenbosch Farmers' Winery Group Limited (4)........................... 215,345 95,779 ------------ ------------ Miscellaneous (3.47%) 290,000 Security Capital European Realty (c)(19)............................... 5,800,000 5,800,000 265,000 Freeport McMoRan Copper & Gold Inc., Preferred Series "D' (d)(24).......... 5,344,791 3,445,000 165,000 Minorco ADR (1)........................ 3,446,307 2,805,000 100,000 Banco Latinoamericano de Exportaciones S.A. Class "E' (BLADEX) (17).......... 3,379,194 2,600,000
20 SoGen Overseas Fund SCHEDULE OF INVESTMENTS MARCH 31, 1999
Number Cost Value of Shares (Note 1) (Note 1) --------- -------- -------- Common and Preferred Stocks (continued) Miscellaneous (continued) 500,000 Jardine Strategic Holdings (20).......................... $ 763,091 $ 845,000 25,000 North European Oil Royalty Trust (2)..................... 319,938 334,375 ------------ ------------ 19,053,321 15,829,375 ------------ ------------ Total Common and Preferred Stocks........................ 458,600,225 395,865,343 ------------ ------------ Principal Amount --------- Bonds, Notes and Convertible Bonds U.S. Dollar Convertible Bonds (4.42%) $ 2,000,000 Medya International Ltd. 10% due 6/28/2001 (15)............ 1,759,817 1,350,000 1,250,000 International Container Terminal Services, Inc. 5% due 9/15/2001 (c)(9).............. 1,123,670 910,938 6,450,000 International Container Terminal Services, Inc. 1 3/4% due 3/13/2004 (9)............. 5,655,406 5,482,500 2,550,000 Danka Business Systems plc 6 3/4% due 4/01/2002 (12)....... 2,204,359 1,326,000 2,000,000 TingYi (C.I.) Holdings 1 5/8% due 7/17/2002 (12)............ 1,462,673 1,385,000 2,860,000 IRSA Inversiones y Representaciones S.A. 4 1/2% due 8/02/2003 (19)............ 3,001,769 2,902,900 2,000,000 Scandinavian Broadcasting System SA 7 1/4% due 8/01/2005 (15).......................... 1,831,012 2,285,000 6,500,000 P.T. Inti Indorayon Utama 7% due 5/02/2006 (3)............. 5,182,232 325,000 4,430,000 Tipco Asphalt Public Co. Ltd. 2 3/4% due 9/19/2006 (6)........ 3,799,775 4,208,500 ------------ ------------ 26,020,713 20,175,838 ------------ ------------ U.S. Dollar Bonds and Notes (2.43%) 1,000,000 P.T. Inti Indorayon Utama 9 1/8% due 10/15/2000 (3)....... 919,570 202,500 2,250,000 P.T. Pabrik Kertas Tjiwi-Kimia 13 1/4% due 8/01/2001 (3)..... 2,193,794 1,676,250 1,275,000 LUKINTER Finance BV 3 1/2% due 5/06/2002 (2)................. 961,390 739,500 1,000,000 Republic National Bank NY Brazil-Linked CD'S 9.65% due 5/01/2003 (17)................ 998,327 645,000 1,500,000 Wharf International Finance Ltd. 7 3/8% due 3/07/2007 (17).......................... 1,273,736 1,191,255 2,500,000 United Mexican States Disc. FRN "D' due 12/31/2019 (6.0975% @ 3/31/1999) (23).... 2,107,389 2,131,250 2,000,000 United Mexican States Disc. FRN "A' due 12/31/2019 (6.11562% @ 3/31/1999) (23)... 1,602,634 1,705,000 1,000,000 Republic of Bulgaria Disc. "A' FRN due 7/28/2024 (5 7/8% @ 3/31/1999) (23)............... 553,879 680,000 3,000,000 Bangkok Bank Public Co. 9.025% due 3/15/2029 (b)(23)......... 1,808,848 2,115,000 ------------ ------------ 12,419,567 11,085,755 ------------ ------------ Non U.S. Dollar Convertible Bonds (2.03%) FRF 41,509,260 Immobiliere Hoteliere 5% due 1/01/2001 (19)................ 6,473,452 3,971,592 JPY 200,000,000 Hanshin Railway Co., Ltd. 1 1/2% due 9/30/2005 (9)........ 1,557,073 1,629,112 GBP 2,500,000 Berisford plc 5% due 1/31/2015 (12).......................... 2,328,420 3,667,300 ------------ ------------ 10,358,945 9,268,004 ------------ ------------ Non U.S. Dollar Bonds and Notes (0.87%) NZD 1,500,000 Trans Power Finance Limited 8% due 3/15/2002 (18)............ 966,604 852,269 FRF 21,500,000 United Mexican States Par 6.63% due 12/31/2019 (23)........... 2,510,314 2,732,646 CHF 500,000 Scandinavian Airlines System Variable Rate Perpetual Notes (3 5/8% @ 3/31/1999) (9)...... 247,886 267,682 CHF 170,000 Air Canada 6 1/4% Perpetual Note (9)...................... 99,326 110,248 ------------ ------------ 3,824,130 3,962,845 ------------ ------------ Total Bonds, Notes and Convertible Bonds............. 52,623,355 44,492,442 ------------ ------------ Short-Term Investment (1.45%) $ 6,599,000 Nestle Capital Corp. 4.73% due 4/01/1999..................... 6,599,000 6,599,000 ------------ ------------ Total Investments (98.02%)..... $517,822,580* 446,956,785** ============ Other assets in excess of liabilities (1.98%)........... 9,046,638 ------------ Net assets (100.00%)........... $456,003,423 ============
21 SoGen Overseas Fund NOTES TO SCHEDULE OF INVESTMENTS MARCH 31, 1999 (a) Non-income producing security. (b) Security is exempt from registration under the Securities Act of 1933 and may only be sold to qualified institutional buyers pursuant to Rule 144A under the Securities Act of 1933. (c) Security for which there are less than three market makers. (d) Commodity-linked security whereby the coupon, dividend and/or redemption amount is linked to the price of an underlying commodity. * At March 31, 1999 cost is identical for both book and federal income tax purposes. ** Gross unrealized appreciation and depreciation of securities at March 31, 1999 were $46,115,498 and $116,981,293, respectively (net depreciation was $70,865,795).
Foreign Currencies Industry Classifications - ------------------ ------------------------ FRF--French Franc (1) Metals and Minerals (13) Distribution JPY--Japanese Yen (2) Energy (14) Heath Care GBP--Pound Sterling (3) Paper and Forest Products (15) Media NZD--New Zealand Dol- lar (4) Agriculture (16) Services CHF--Swiss Franc (5) Automotive (17) Financial Services (6) Building Materials (18) Utilities (7) Capital Goods (19) Real Estate (8) Chemicals (20) Holding Companies (9) Transportation (21) Conglomerates (10) Electronics (22) Investment Companies (11) Technology (23) Government Issues (12) Consumer Products (24) Gold Related
Bond Type - --------- --- FRN--Floating Rate Note
- -------- See Notes to Financial Statements. 22 SoGen Gold Fund SCHEDULE OF INVESTMENTS MARCH 31, 1999
Number Cost Value of Shares (Note 1) (Note 1) --------- -------- -------- Common and Preferred Stocks United States (40.06%) 148,500 Freeport McMoRan Copper & Gold Inc., Preferred Series "C' (c)................. $ 5,367,254 $ 1,930,500 99,300 Freeport McMoRan Copper & Gold Inc., Preferred Series "D' (c)................. 2,133,846 1,290,900 39,400 Freeport McMoRan Copper & Gold Inc., Preferred Series "B' (c)................. 1,468,889 603,313 1,075 Case, Pomeroy & Co., Inc. Class "A'....... 1,167,980 1,177,125 65,000 Newmont Mining Corporation................ 2,153,190 1,137,500 80,000 Homestake Mining Company.................. 716,538 690,000 165,000 Battle Mountain Gold Company Class "A'.... 942,651 453,750 ----------- ----------- 13,950,348 7,283,088 ----------- ----------- Canada (11.53%) 55,000 Franco-Nevada Mining Corp. Ltd............ 717,488 871,107 150,000 Kinross Gold Corp......................... 455,499 315,109 50,000 Meridian Gold Inc. (a).................... 181,453 288,270 45,000 CSA Management Limited Class "A'.......... 256,926 272,863 15,000 Placer Dome Inc........................... 172,950 167,813 20,000 Pan American Silver Corp. (a)............. 66,842 104,705 100,000 Miramar Mining Corporation (a)............ 202,289 76,209 ----------- ----------- 2,053,447 2,096,076 ----------- ----------- Australia (3.38%) 795,000 Otter Gold Mines Limited (a).............. 771,004 364,361 230,000 Otter Gold Mines Limited Warrants......... 0 21,961 1,250,000 Perilya Mines N.L. (a).................... 708,478 186,987 200,000 Tanganyika Gold........................... 142,336 42,012 ----------- ----------- 1,621,818 615,321 ----------- ----------- South Africa (20.77%) 150,000 Gold Fields Limited....................... 909,143 865,666 175,000 Harmony Gold Mining Company Ltd........... 800,312 821,023 200,000 Driefontein Consolidated Ltd. ADR......... 1,212,792 800,000 30,000 Anglogold Limited ADR..................... 702,714 603,750 125,000 St. Helena Gold Mines Ltd. ADR............ 1,034,856 296,875 50,000 St. Helena Gold Mines Ltd................. 147,538 129,870 2,000,000 Consolidated African Mines Limited........ 288,659 259,740 ----------- ----------- 5,096,014 3,776,924 ----------- ----------- Switzerland (9.98%) 250 Bank for International Settlements (U.S. Tranche)................................. 1,863,268 1,405,965 100 Bank for International Settlements (French Tranche)................................. 672,277 407,957 ----------- ----------- 2,535,545 1,813,922 ----------- ----------- Miscellaneous (13.23%) 494,000 Industrias Penoles, S.A. de C.V........... 1,457,387 1,541,155 1,512,782 Compania Minera Arcata S.A................ 1,448,082 476,574 30,000 Lonmin plc................................ 152,659 219,796 115,000 Tronoh Mines Malaysia Berhad (d).......... 104,885 167,963 ----------- ----------- 3,163,013 2,405,488 ----------- ----------- Total Common and Preferred Stocks......... 28,420,185 17,990,819 ----------- -----------
23 SoGen Gold Fund SCHEDULE OF INVESTMENTS MARCH 31, 1999
Principal Cost Value Amount (Note 1) (Note 1) --------- -------- -------- Bonds, Notes and Convertible Bonds U.S. Dollar Convertible Bonds (1.22%) $100,000 Dayton Mining Corporation 7% due 4/01/2002 (b)......................... $ 100,000 $ 19,000 350,000 Pegasus Gold Inc. 6 1/4% due 4/30/2002 (a)(e)................................ 385,500 875 250,000 Pegasus Gold Inc. 6 1/4% due 4/30/2002 (a)(b)(e)............................. 220,951 625 300,000 Agnico-Eagle Mines Limited 3 1/2% due 1/27/2004............................. 249,904 201,000 ----------- ----------- Total Bonds, Notes and Convertible Bonds................................. 956,355 221,500 ----------- ----------- Total Investments (100.17%)............ $29,376,540* 18,212,319** =========== Other liabilities in excess of assets (-0.17%).............................. (30,841) ----------- Net assets (100.00%)................... $18,181,478 ===========
- -------- (a) Non-income producing security. (b) Security is exempt from registration under the Securities Act of 1933 and may only be to qualified institutional buyers pursuant to Rule 144A under the Securities Act of 1933. (c) Commodity-linked security whereby the coupon, dividend and/or redemption amount is linked to the price of an underlying commodity. (d) Securites for which there are less than three market makers. (e) In default as to principal and interest. * At March 31, 1999 cost is identical for both book and federal income tax purposes. ** Gross unrealized appreciation and depreciation of securities at March 31, 1999 were $580,036 and $11,744,257, respectively (net depreciation was $11,164,221). - -------- See Notes to Financial Statements. 24 SoGen Money Fund SCHEDULE OF INVESTMENTS MARCH 31, 1999
Credit Principal Cost Value Rating+ Amount (Note 1) (Note 1) ------- ---------- -------- -------- Commercial Paper (100.73%) A1+ $1,900,000 Motorola Inc. 4.79% due 4/01/1999...................... $ 1,900,000 $ 1,900,000 A1 1,372,000 American Express Credit Corporation 4.92% due 4/01/1999...................... 1,372,000 1,372,000 A1 943,000 American Express Credit Corporation 4.94% due 4/01/1999...................... 943,000 943,000 A1+ 2,000,000 McDonald's Corporation 4.87% due 4/05/1999.................. 1,998,918 1,998,918 A1 1,875,000 Ford Motor Credit Company 4.74% due 4/05/1999.................. 1,874,013 1,874,013 A1+ 1,573,000 Merrill Lynch & Co., Inc. 4.85% due 4/05/1999.................. 1,572,152 1,572,152 A1+ 850,000 Toyota Motor Credit Corporation 4.78% due 4/06/1999............ 849,436 849,436 A1 544,000 The Sherwin-Williams Company 4.83% due 4/06/1999............ 543,635 543,635 A1 460,000 General Motors Acceptance Company 4.84% due 4/06/1999.... 459,691 459,691 A1+ 205,000 The Coca-Cola Company 4.84% due 4/06/1999...................... 204,862 204,862 A1+ 1,400,000 Toyota Motor Credit Corporation 4.78% due 4/07/1999............ 1,398,885 1,398,885 A1+ 525,000 The Southland Corporation 4.87% due 4/07/1999.................. 524,574 524,574 A1+ 2,175,000 General Electric Capital Corporation 4.81% due 4/08/1999...................... 2,172,966 2,172,966 A1+ 2,000,000 The Coca-Cola Company 4.85% due 4/08/1999...................... 1,998,114 1,998,114 A1 1,740,000 General Motors Acceptance Company 4.95% due 4/08/1999.... 1,738,325 1,738,325 A1 2,000,000 Toys "R' Us 4.83% due 4/09/1999...................... 1,997,853 1,997,853 A1 501,000 Air Products and Chemicals, Inc. 4.82% due 4/09/1999....... 500,463 500,463 A1 1,606,000 The Sherwin-Williams Company 4.83% due 4/12/1999............ 1,603,630 1,603,630 A1+ 900,000 Emerson Electric Co. 4.81% due 4/12/1999...................... 898,677 898,677 A1 2,150,000 Lucent Technologies Inc. 4.80% due 4/13/1999.................. 2,146,560 2,146,560 A1 1,107,000 Xerox Credit Corporation 4.83% due 4/14/1999.................. 1,105,069 1,105,069 A1 990,000 Caterpillar Financial Services Corporation 4.80% due 4/14/1999...................... 988,284 988,284 A1 475,000 The Walt Disney Company 4.72% due 4/14/1999.................. 474,190 474,190 A1 1,225,000 Anheuser-Busch Companies, Inc. 4.75% due 4/16/1999............ 1,222,576 1,222,576 A1+ 727,000 Merrill Lynch & Co., Inc. 4.83% due 4/16/1999.................. 725,537 725,537 A1 1,675,000 The Walt Disney Company 4.76% due 4/19/1999.................. 1,671,014 1,671,014 A1+ 648,000 Emerson Electric Co. 4.81% due 4/20/1999...................... 646,355 646,355 A1+ 2,175,000 Abbott Laboratories 4.78% due 4/22/1999...................... 2,168,935 2,168,935 A1 925,000 Anheuser-Busch Companies, Inc. 4.77% due 4/22/1999............ 922,426 922,426 A1 2,222,000 H. J. Heinz Company 4.83% due 4/28/1999...................... 2,213,951 2,213,951 A1+ 1,650,000 The Southland Corporation 4.87% due 4/29/1999.................. 1,643,750 1,643,750 A1+ 2,175,000 E. I. du Pont de Nemours and Company 4.80% due 5/04/1999.... 2,165,430 2,165,430 A1+ 2,150,000 Fuji Photo Film Finance U.S.A., Inc. 4.86% due 5/11/1999....... 2,138,390 2,138,390 A1 120,000 Caterpillar Financial Services Corporation 4.83% due 5/17/1999...................... 119,259 119,259 ----------- ----------- Total Commercial Paper......... $44,902,920* 44,902,920 =========== Other liabilities in excess of assets (-0.73%)................ (324,929) ----------- Net assets (100.00%)........... $44,577,991 ===========
- -------- * At March 31, 1999 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. 25 SoGen Funds, Inc. STATEMENTS OF ASSETS AND LIABILITIES MARCH 31, 1999
SoGen SoGen SoGen SoGen International Fund Overseas Fund Gold Fund Money Fund ------------------ ------------- ------------ ----------- Assets: Investments, at value (cost: $2,086,884,655, $517,822,580, $29,376,540 and $44,902,920, respectively) (Note 1)................... $2,053,714,305 $446,956,785 $18,212,319 $44,902,920 Cash.................. 3,238,511 2,003,075 -- 40,704 Receivable for forward currency contracts held, at value (Notes 1 and 6)............. 20,003,441 6,537,847 539 -- Receivable for investment securities sold................. 13,611,313 4,129,552 3,122,654 -- Receivable for Fund shares sold.......... 1,225,323 211,750 10,627 16,723 Accrued interest and dividends receivable........... 15,942,549 4,053,279 81,118 -- Prepaid expenses and other assets......... 60,547 12,443 1,059 395 -------------- ------------ ------------ ----------- Total Assets...... 2,107,795,989 463,904,731 21,428,316 44,960,742 -------------- ------------ ------------ ----------- Liabilities: Payable for Fund shares redeemed...... 15,787,676 2,986,846 3,129,934 208,972 Payable for investment securities purchased............ 1,683,278 841,380 -- -- Payable for forward currency contracts held, at value (Notes 1 and 6)............. 8,725,139 3,111,691 3,383 -- Investment advisory fees payable (Note 2)............. 4,364,833 331,162 15,677 135,648 Distribution fees payable (Note 3)..... 1,401,932 311,859 14,295 -- Directors' fees payable (Note 2)..... 10,100 7,766 1,567 602 Accrued expenses and other liabilities.... 1,035,297 310,604 81,982 37,529 -------------- ------------ ------------ ----------- Total Liabili- ties............. 33,008,255 7,901,308 3,246,838 382,751 -------------- ------------ ------------ ----------- Net Assets: Capital stock (par value, $0.001 per share)............... 90,605 40,127 3,343 44,578 Capital surplus....... 2,008,525,603 518,888,383 47,261,045 44,533,413 Net unrealized appreciation (depreciation) on: Investments......... (33,170,350) (70,865,795) (11,164,221) -- Forward currency contracts.......... 11,278,302 3,426,156 (2,844) -- Foreign currency related transactions....... 3,606 (23,442) 1,212 -- Undistributed net realized gains (losses) on investments ......... 70,915,205 9,369,652 (18,153,439) -- Undistributed (overdistributed) net investment income.... 17,144,763 (4,831,658) 236,382 -- -------------- ------------ ------------ ----------- Net Assets (Note 1)............... $2,074,787,734 $456,003,423 $18,181,478 $44,577,991 ============== ============ ============ =========== Class A share capital... $2,063,042,552 $453,182,420 $18,181,478 $44,577,991 Shares of beneficial interest outstanding-- Class A (Note 5)....... 90,091,666 39,879,094 3,343,031 44,577,991 Net asset value per share................ $22.90 $11.36 $5.44 $1.00 Maximum offering price per share............ $23.79 $11.81 $5.65 $1.00 Class I share capital... $11,745,182 $2,821,003 -- -- Shares of beneficial interest outstanding-- Class I (Note 5)....... 512,901 248,115 -- -- Net asset value per share................ $22.90 $11.37 -- --
- -------- See Notes to Financial Statements. 26 SoGen Funds, Inc. STATEMENTS OF OPERATIONS FOR THE YEAR ENDED MARCH 31, 1999
SoGen SoGen SoGen SoGen International Fund Overseas Fund Gold Fund Money Fund ------------------ ------------- ------------ ---------- Investment Income: Income: Interest (net of $122,845, $54,323, $519 and $0 foreign taxes withheld, respectively)...... $ 76,373,645 $ 11,059,225 $ 48,691 $1,609,085 Dividends (net of $2,818,776, $1,140,229, $3,240 and $0 foreign taxes withheld, respectively)...... 46,610,292 14,773,855 929,405 -- ------------- ------------- ------------ ---------- Total income from operations........ 122,983,937 25,833,080 978,096 1,609,085 ------------- ------------- ------------ ---------- Expenses: Investment advisory fees (Note 2)...... 23,196,530 5,519,451 201,757 122,538 Distribution fees-- Class A (Note 3)... 7,601,223 1,826,014 67,234 -- Shareholder servicing agent fees............... 3,709,702 848,286 64,132 21,171 Custodian fees...... 2,454,694 972,573 43,706 30,477 Printing............ 862,000 135,000 8,200 1,400 Audit fees.......... 135,000 65,000 39,000 13,500 Insurance........... 75,851 32,894 1,720 810 Registration and filing fees........ 56,216 55,319 8,700 15,014 Directors' fees (Note 2)........... 50,000 47,500 1,750 750 Legal fees.......... 45,000 7,513 199 100 Amortization of deferred organization costs (Note 1)........... -- 3,619 3,634 3,612 Miscellaneous....... 40,000 10,000 1,901 500 ------------- ------------- ------------ ---------- Total expenses from operations........ 38,226,216 9,523,169 441,933 209,872 ------------- ------------- ------------ ---------- Expense reduction due to earnings credits (Note 1)............. (164,396) (30,859) (4,338) (1,009) Expense reimbursements (Note 2)............. (30,997) (9,036) -- -- ------------- ------------- ------------ ---------- Net expenses from operations........ 38,030,823 9,483,274 437,595 208,863 ------------- ------------- ------------ ---------- Net investment income (Note 1)............. 84,953,114 16,349,806 540,501 1,400,222 ------------- ------------- ------------ ---------- Realized and Unrealized Gains (Losses) on Investments and Foreign Currency Related Transactions (Notes 1 and 6): Net realized gains (losses) from: Investment transactions....... 168,296,693 39,308,008 (11,728,672) -- Foreign currency related transactions....... (13,766,668) (3,213,604) 54,741 -- ------------- ------------- ------------ ---------- 154,530,025 36,094,404 (11,673,931) -- ------------- ------------- ------------ ---------- Change in unrealized appreciation (depreciation) of: Investments......... (531,168,396) (107,192,382) 3,982,640 -- Foreign currency related transactions....... (20,773,043) (12,092,955) (1,867) -- ------------- ------------- ------------ ---------- (551,941,439) (119,285,337) 3,980,773 -- ------------- ------------- ------------ ---------- Net loss on investments and foreign currency related transactions......... (397,411,414) (83,190,933) (7,693,158) -- ------------- ------------- ------------ ---------- Net Increase (Decrease) in Net Assets Resulting from Operations........ $(312,458,300) $ (66,841,127) $ (7,152,657) $1,400,222 ============= ============= ============ ==========
- -------- See Notes to Financial Statements. 27 SoGen Funds, Inc. STATEMENTS OF CHANGES IN NET ASSETS
SoGen International Fund -------------------------------- Year Ended March 31, -------------------------------- 1999 1998 --------------- --------------- Operations: Net investment income....................... $ 84,953,114 $ 115,368,671 Net realized gain (loss) from investments and foreign currency related transactions.. 154,530,025 364,373,696 Increase (decrease) in unrealized appreciation (depreciation) of investments and foreign currency related transactions.. (551,941,439) 56,631,442 --------------- --------------- Net increase (decrease) in net assets resulting from operations.................. (312,458,300) 536,373,809 --------------- --------------- Distributions to Shareholders*: Dividends paid from net investment income-- Class A.................................... (110,081,179) (193,856,290) Distributions paid from net realized gains from investment transactions--Class A...... (202,307,763) (209,531,019) Distributions paid from net realized gains from investment transactions--Class I...... (251,906) -- --------------- --------------- Decrease in net assets resulting from distributions.............................. (312,640,848) (403,387,309) --------------- --------------- Fund Share Transactions (Note 5): Net proceeds from shares sold............... 236,922,214 636,061,215 Net asset value of shares issued for reinvested dividends and distributions..... 298,148,526 376,079,758 Cost of shares redeemed..................... (1,870,638,096) (1,017,481,210) --------------- --------------- Increase (decrease) in net assets from Fund share transactions......................... (1,335,567,356) (5,340,237) --------------- --------------- Net increase (decrease) in net assets....... (1,960,666,504) 127,646,263 Net Assets (Note 1): Beginning of year........................... 4,035,454,238 3,907,807,975 --------------- --------------- End of year (including (overdistributed) undistributed net investment income of $17,144,763, $53,248,050, $(4,831,658), $15,129,045, $236,382, $(156,563), $0 and $0, respectively.)......................... $ 2,074,787,734 $ 4,035,454,238 =============== =============== *Distributions per share: Class A Investment income dividends................. $0.83 $1.36 Net realized short-term capital gains....... 0.04 0.15 Net realized long-term capital gains........ 1.55 1.32 ----- ----- Total distributions per share............... $2.42 $2.83 ===== ===== Class I Net realized long-term capital gains........ $0.52 =====
- -------- See Notes to Financial Statements. 28
SoGen SoGen SoGen Overseas Fund Gold Fund Money Fund - ------------------------------ -------------------------- -------------------------- Year Ended March 31, Year Ended March 31, Year Ended March 31, - ------------------------------ -------------------------- -------------------------- 1999 1998 1999 1998 1999 1998 - -------------- -------------- ------------ ------------ ------------ ------------ $ 16,349,806 $ 22,940,277 $ 540,501 $ 598,458 $ 1,400,222 $ 740,083 36,094,404 92,039,636 (11,673,931) (3,870,006) -- -- (119,285,337) (24,805,575) 3,980,773 (10,687,910) -- -- - -------------- -------------- ------------ ------------ ------------ ------------ (66,841,127) 90,174,338 (7,152,657) (13,959,458) 1,400,222 740,083 - -------------- -------------- ------------ ------------ ------------ ------------ (36,599,856) (56,572,364) (721,767) (1,698,298) (1,400,222) (740,083) (47,193,626) (46,971,171) -- -- -- -- (290,203) -- -- -- -- -- - -------------- -------------- ------------ ------------ ------------ ------------ (84,083,685) (103,543,535) (721,767) (1,698,298) (1,400,222) (740,083) - -------------- -------------- ------------ ------------ ------------ ------------ 206,369,491 407,593,939 18,994,383 23,076,846 120,259,724 84,544,002 80,886,809 95,642,644 676,938 1,544,469 1,222,356 630,970 (687,431,699) (436,078,395) (25,110,669) (30,119,535) (95,946,703) (79,260,149) - -------------- -------------- ------------ ------------ ------------ ------------ (400,175,399) 67,158,188 (5,439,348) (5,498,220) 25,535,377 5,914,823 - -------------- -------------- ------------ ------------ ------------ ------------ (551,100,211) 53,788,991 (13,313,772) (21,155,976) 25,535,377 5,914,823 1,007,103,634 953,314,643 31,495,250 52,651,226 19,042,614 13,127,791 - -------------- -------------- ------------ ------------ ------------ ------------ $ 456,003,423 $1,007,103,634 $ 18,181,478 $ 31,495,250 $ 44,577,991 $ 19,042,614 ============== ============== ============ ============ ============ ============ $0.57 $0.825 $0.21 $0.39 $0.05 $0.05 0.04 0.075 0.00 0.00 0.00 0.00 0.73 0.610 0.00 0.00 0.00 0.00 ----- ------ ----- ----- ----- ----- $1.34 $1.510 $0.00 $0.39 $0.05 $0.05 ===== ====== ===== ===== ===== ===== $0.25 =====
29 SoGen Funds, Inc. NOTES TO FINANCIAL STATEMENTS Note 1--Significant Accounting Policies SoGen International Fund, SoGen Overseas Fund, SoGen Gold Fund and SoGen Money Fund are four separate portfolios of SoGen Funds, Inc. (the "Company"), an open-end management investment company registered under the Investment Com- pany Act of 1940, as amended (each individually a "Fund" or collectively the "Funds"). SoGen International Fund, Inc. was reorganized as a separate invest- ment portfolio of SoGen Funds, Inc. effective July 31, 1998. The following is a summary of significant accounting policies adhered to by the Funds. a) Security valuation--In the case of SoGen International Fund, SoGen Over- seas Fund and SoGen Gold Fund, portfolio securities are valued based on market quotations where available. 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 approximates market value, subject to guidelines and procedures es- tablished by the Board of Directors in accordance with applicable SEC regula- tions. Securities for which current market quotations are not readily available and any restricted securities are valued at fair value as determined in good faith by the Board of Directors. b) 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. c) 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. d) Foreign currency translation (SoGen International Fund, SoGen Overseas Fund and SoGen Gold Fund)--The market values of securities which are not traded in U.S. currency are recorded 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 securities 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. The net assets of each of SoGen International Fund, SoGen Overseas Fund and SoGen Gold Fund are presented at the foreign exchange rates and market values at the close of the period. The Funds do not isolate 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. Howev- er, for federal income tax purposes each Fund does isolate the effect of changes in foreign exchange rates from the changes in market prices for real- ized gains and losses on debt obligations. e) Forward currency contracts (SoGen International Fund, SoGen Overseas Fund and SoGen Gold Fund)--In connection with portfolio purchases and sales of secu- rities denominated in foreign currencies, SoGen International Fund, SoGen Over- seas Fund and SoGen Gold Fund may enter into forward currency contracts. Addi- tionally, each Fund may enter into such contracts to hedge certain other for- eign 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 statements of operations. 30 SoGen Funds, Inc. NOTES TO FINANCIAL STATEMENTS (continued) Note 1--Significant Accounting Policies (continued) 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. f) United States income taxes--No provision has been made for U.S. federal income taxes since it is the intention of each Fund to distribute to sharehold- ers 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 Internal Revenue Code for a regulated investment company. SoGen International Fund, SoGen Overseas Fund and SoGen Gold Fund declare and pay such income divi- dends and capital gains distributions on an annual basis. SoGen Money Fund de- clares daily dividends, equivalent to net investment income, which are paid on a monthly basis. In addition, SoGen Gold Fund had a capital loss carryforward in the amount of $11,133,325; $789,246 of which will expire on March 31, 2005, $1,336,531 of which will expire on March 31, 2006, and $9,007,548 of which will expire on March 31, 2007. g) Reclassification of capital accounts--On the statements of assets and lia- bilities, as a result of certain differences in the computation of net invest- ment income and net realized capital gains under federal income tax rules and regulations versus generally accepted accounting principles, a reclassification has been made to increase (decrease) undistributed net investment income, un- distributed net realized gains on investments and capital surplus for SoGen In- ternational Fund, SoGen Overseas Fund and SoGen Gold Fund, as follows:
Undistributed Net Undistributed Net Realized Capital Investment Income Gains (Losses) On Investments Surplus ----------------- ----------------------------- --------- SoGen International Fund.. $(10,975,222) $11,472,173 $(496,951) SoGen Overseas Fund....... $ 289,347 $ (198,262) $ (91,085) SoGen Gold Fund........... $ 574,211 $ (610,761) $ 36,550
h) Use of estimates--The preparation of financial statements in conformity with generally accepted accounting principles requires management to make esti- mates and assumptions that affect the reported amounts of assets and liabili- ties at the date of the financial statements and the reported amounts of reve- nues and expenses during the reporting period. Actual results could differ from those estimates. i) Deferred organization costs--Costs incurred in connection with the organi- zation of the Funds were amortized on a straight-line basis over a sixty-month period from the date each Fund commenced operations. Note 2--Investment Advisory Agreements and Transactions with Related Persons Under the terms of investment advisory agreements each Fund pays Societe Generale Asset Management Corp. ("SGAM Corp.") an advisory fee for advisory services and facilities furnished, at an annual rate of the average daily net assets of that Fund as follows: SoGen International Fund at a rate of 1% of the first $25,000,000 and 0.75% in excess of $25,000,000, SoGen Overseas Fund at 0.75%, SoGen Gold Fund at 0.75% and SoGen Money Fund at 0.40%. For the year ended March 31, 1999, the investment advisory fees paid or payable to SGAM Corp. were $23,196,530, $5,519,451, $201,757 and $122,538 for SoGen Interna- tional Fund, SoGen Overseas Fund, SoGen Gold Fund and SoGen Money Fund, respec- tively. SGAM Corp. has agreed to waive its advisory fee and, if necessary, re- imburse SoGen Money Fund through July 31, 1999 to the extent that SoGen Money Fund's aggregate expenses exceed 0.75%. No advisory fee waiver or expense reim- bursement for SoGen Money Fund was required for the year ended March 31, 1999; however, SGAM Corp. voluntarily reimbursed the Class I shares of SoGen Interna- tional Fund and SoGen Overseas Fund in the amounts of $30,997 and $9,036, re- spectively. 31 SoGen Funds, Inc. NOTES TO FINANCIAL STATEMENTS (continued) Note 2--Investment Advisory Agreements and Transactions with Related Persons (continued) For the year ended March 31, 1999, SG Cowen Securities Corporation ("SGCS"), the principal underwriter, realized $326,153, $80,285 and $5,108 in dealer's and underwriter's commissions, after reallowance to others, pertaining to the sale of shares of SoGen International Fund, SoGen Overseas Fund and SoGen Gold Fund, respectively. Societe Generale, a stockholder of SGAM Corp. and SGCS, re- ceived dealer's commissions of $13,990, $0 and $0 pertaining to the sale of shares of SoGen International Fund, SoGen Overseas Fund and SoGen Gold Fund, respectively. For the same period, Societe Generale or its affiliates received $136,233, $92,940 and $3,278 in broker's commissions for portfolio transactions executed on behalf of SoGen International Fund, SoGen Overseas Fund and SoGen Gold Fund, respectively. Each director who is not an officer of the Company or an employee of SGAM Corp., SGCS or its corporate affiliates is paid an annual fee of $12,000 plus $2,000 for each meeting attended. For the year ended March 31, 1999 such fees amounted to $50,000, $47,500, $1,750 and $750 for SoGen International Fund, SoGen Overseas Fund, SoGen Gold Fund and SoGen Money Fund, respectively. Note 3--Plans of Distribution (SoGen International Fund, SoGen Overseas Fund and SoGen Gold Fund) Under the terms of the Distribution Plans and Agreements ("the Plans") with SGCS, pursuant to the provisions of Rule 12b-1 under the Investment Company Act of 1940, SoGen International Fund, SoGen Overseas Fund and SoGen Gold Fund pay SGCS quarterly, a distribution fee at an annual rate of up to 0.25% of each Fund's average daily net assets. Under the Plan, SGCS must apply the full amounts received from a Fund to actual distribution expenses incurred during the Fund's fiscal year, including the payment of fees to dealers selling Class A shares of the Fund, the payment of advertising costs and the payment for the printing and distribution of prospectuses to prospective investors. SGCS bears distribution costs of a Fund to the extent they exceed payments received under the Plan. For the year ended March 31, 1999 the distribution fees paid or payable to SGCS by SoGen International Fund, SoGen Overseas Fund and SoGen Gold Fund were $7,601,223, $1,826,014 and $67,234, respectively. Note 4--Purchases and Sales of Securities During the year ended March 31, 1999 the aggregate cost of purchases of in- vestments, excluding U.S. Government obligations and short-term securities, to- taled $227,877,262, $66,989,813 and $9,792,343 for SoGen International Fund, SoGen Overseas Fund and SoGen Gold Fund, respectively, and proceeds from sales of investments, excluding short-term securities, totaled $1,212,558,524, $472,244,512 and $15,173,789 for SoGen International Fund, SoGen Overseas Fund and SoGen Gold Fund, respectively. During the same period, the cost of pur- chases and proceeds from sales of U.S. Government obligations totaled $53,001,133 and $142,147,803, respectively, for SoGen International Fund. Note 5--Capital Stock Transactions in shares of capital stock were as follows:
SoGen SoGen International Fund Overseas Fund --------------------- ----------------------- SoGen SoGen Class A Class I Class A Class I Gold Fund Money Fund ----------- -------- ----------- ---------- ---------- ----------- Year Ended March 31, 1999 Shares sold............ 8,905,772 612,688 15,769,843 1,561,690 3,021,250 120,259,724 Shares issued for reinvested dividends and distributions......... 12,331,204 10,427 6,673,184 26,406 121,893 1,222,356 Shares redeemed........ (78,320,991) (110,214) (57,045,845) (1,339,981) (4,107,084) (95,946,703) ----------- -------- ----------- ---------- ---------- ----------- Net increase (decrease)............ (57,084,015) 512,901 (34,602,818) 248,115 (963,941) 25,535,377 =========== ======== =========== ========== ========== ===========
32 SoGen Funds, Inc. NOTES TO FINANCIAL STATEMENTS (continued) Note 5--Capital Stock (continued)
SoGen International SoGen SoGen SoGen Fund Overseas Fund Gold Fund Money Fund ------------- ------------- ---------- ----------- Year Ended March 31, 1998 Shares sold............. 22,874,430 29,811,448 2,680,555 84,544,002 Shares issued for reinvested dividends and distributions...... 14,971,308 7,983,478 218,395 630,970 Shares redeemed......... (37,127,256) (32,183,366) (3,558,392) (79,260,149) ----------- ----------- ---------- ----------- Net increase (de- crease)................ 718,482 5,611,560 (659,442) 5,914,823 =========== =========== ========== ===========
Note 6--Commitments As of March 31, 1999, SoGen International Fund, SoGen Overseas Fund and SoGen Gold Fund had entered into forward currency contracts, as summarized below, resulting in net unrealized appreciation (depreciation) of $11,278,302, $3,426,156, $(2,844), respectively. SoGen International Fund Transaction Hedges: Foreign Currency Purchases
Settlement U.S. $ Value at U.S $ Unrealized Unrealized Dates Foreign Currency To March 31, To Be Appreciation at Depreciation at Through Be Received 1999 Delivered March 31, 1999 March 31, 1999 - ---------- ------------------------------ --------------- --------------- --------------- --------------- 4/08/99 1,044,217 Pound Sterling $1,683,278 $1,689,519 -- $(6,241) ---------- ---------- ------------ ------------- Foreign Currency Sales Settlement U.S $ U.S. $ Value at Unrealized Unrealized Dates Foreign Currency To To Be March 31, Appreciation at Depreciation at Through Be Delivered Received 1999 March 31, 1999 March 31, 1999 - ---------- ------------------------------ --------------- --------------- --------------- --------------- 4/01/99 169,023 Deutsche Mark $ 92,819 $ 93,269 -- $ (450) 4/01/99 196,276 Swiss Franc 132,172 132,592 -- (420) 4/05/99 562,276 Canadian Dollar 372,122 372,615 -- (493) 4/05/99 44,138,109 Greek Drachma 145,526 146,177 -- (651) 4/05/99 516,964,443 Japanese Yen 4,312,731 4,354,668 -- (41,937) 4/06/99 65,670 New Zealand Dollar 35,168 35,202 -- (34) 4/07/99 1,066,567 Swedish Krona 129,744 129,480 $ 264 -- 4/08/99 2,077,424 Norwegian Krone 266,349 268,345 -- (1,996) 4/09/99 717,753 Pound Sterling 1,159,794 1,157,018 2,776 -- 4/30/99 1,390,452 Euro 1,495,629 1,500,645 -- (5,016) ---------- ---------- ------------ ------------- 8,142,054 8,190,011 3,040 (50,997) ---------- ---------- ------------ -------------
33 SoGen Funds, Inc. NOTES TO FINANCIAL STATEMENTS (continued) Note 6--Commitments (continued) Portfolio Hedges:
Unrealized Unrealized Settlement U.S $ U.S. $ Value at Appreciation at Depreciation at Dates Foreign Currency To To Be March 31, March 31, March 31, Through Be Delivered Received 1999 1999 1999 - ---------- --------------------------------- --------------- --------------- --------------- --------------- 5/05/99 0 Pound Sterling $ 5,513,505 $ 5,437,007 $ 76,498 -- 7/01/99 480,666,000 French Franc 110,723,573 102,492,033 8,231,540 -- 7/08/99 131,213,000 Deutsche Mark 133,563,332 127,241,026 6,322,306 -- 7/15/99 0 Australian Dollar 52,055,761 52,563,304 -- $ (507,543) 7/22/99 113,316,000 Swiss Franc 129,709,076 124,360,767 5,348,309 -- 9/01/99 220,000 Euro 257,115 235,367 21,748 -- 11/13/00 18,669,624,000 Japanese Yen 245,218,419 249,015,992 -- (3,797,573) 10/05/01 68,800,000 New Zealand Dollar 60,910,582 65,273,367 -- (4,362,785) ------------ ------------ ----------- ----------- 737,951,363 726,618,863 20,000,401 (8,667,901) ------------ ------------ ----------- ----------- $747,776,695 $736,498,393 $20,003,441 $(8,725,139) ============ ============ =========== =========== SoGen Overseas Fund Transaction Hedges: Foreign Currency Purchases Unrealized Unrealized Settlement U.S. $ Value at U.S $ Appreciation at Depreciation at Dates Foreign Currency To March 31, To Be March 31, March 31, Through Be Received 1999 Delivered 1999 1999 - ---------- --------------------------------- --------------- --------------- --------------- --------------- 4/08/99 521,948 Pound Sterling $ 841,380 $ 844,597 -- $ (3,217) ------------ ------------ ----------- ----------- Foreign Currency Sales Unrealized Unrealized Settlement U.S $ U.S. $ Value at Appreciation at Depreciation at Dates Foreign Currency To To Be March 31, March 31, March 31, Through Be Delivered Received 1999 1999 1999 - ---------- --------------------------------- --------------- --------------- --------------- --------------- 4/05/99 230,772,785 Japanese Yen $ 1,929,156 $ 1,943,923 -- $ (14,767) 4/06/99 49,576 New Zealand Dollar 26,556 26,575 -- (19) 4/07/99 259,334 Swiss Franc 174,838 175,190 -- (352) 4/07/99 533,283 Swedish Krona 64,872 64,740 $ 132 -- 4/08/99 1,244,620 Norwegian Krone 159,573 160,770 -- (1,197) 4/09/99 359,753 Pound Sterling 581,690 579,922 1,768 -- 4/30/99 844,405 Euro 909,224 911,325 -- (2,101) ------------ ------------ ----------- ----------- 3,845,909 3,862,445 1,900 (18,436) ------------ ------------ ----------- -----------
34 SoGen Funds, Inc. NOTES TO FINANCIAL STATEMENTS (continued) Note 6--Commitments (continued) Portfolio Hedges:
Settlement U.S $ U.S. $ Value at Unrealized Unrealized Dates Foreign Currency To To Be March 31, Appreciation at Depreciation at Through Be Delivered Received 1999 March 31, 1999 March 31, 1999 - ---------- -------------------------------- ------------ --------------- --------------- --------------- 4/07/99 37,627,000 Swiss Franc $ 55,893,644 $ 54,202,431 $1,691,213 -- 4/14/99 43,052,500 Deutsche Mark 51,648,359 49,581,835 2,066,524 -- 5/05/99 0 Pound Sterling 1,683,765 1,669,621 14,144 -- 7/01/99 154,009,400 French Franc 41,206,314 38,442,248 2,764,066 -- 7/15/99 0 Australian Dollar 27,795,479 27,945,508 -- $ (150,029) 11/13/00 8,235,775,800 Japanese Yen 125,381,844 126,765,845 -- (1,384,001) 10/05/01 25,451,900 New Zealand Dollar 21,311,354 22,867,362 -- (1,556,008) ------------ ------------ ---------- ----------- 324,920,759 321,474,850 6,535,947 (3,090,038) ------------ ------------ ---------- ----------- $329,608,048 $326,181,892 $6,537,847 $(3,111,691) ============ ============ ========== =========== SoGen Gold Fund Transaction Hedges: Foreign Currency Sales Settlement U.S $ U.S. $ Value at Unrealized Unrealized Dates Foreign Currency To To Be March 31, Appreciation at Depreciation at Through Be Delivered Received 1999 March 31, 1999 March 31, 1999 - ---------- -------------------------------- ------------ --------------- --------------- --------------- 4/06/99 669,152 Canadian Dollar $ 442,821 $ 443,440 -- $ (619) 4/06/99 177,726 Mexican Peso 18,649 18,669 -- (20) 4/06/99 2,696,097 South African Rand 436,651 437,678 -- (1,027) 4/07/99 207,323 Australian Dollar 130,255 131,972 -- (1,717) 4/07/99 424,125 Swiss Franc 286,967 286,513 $ 454 -- 4/09/99 111,789 Pound Sterling 180,289 180,204 85 -- ------------ ------------ ---------- ----------- $ 1,495,632 $ 1,498,476 $ 539 $ (3,383) ============ ============ ========== ===========
35 SoGen Funds, Inc. FINANCIAL HIGHLIGHTS
Year Ended March 31, ---------------------------------------------------- 1999 1998 1997 1996 1995 ------------------- ------ ------ ------ ------ Class A Class I . ------- --------- SoGen International Fund Selected Per Share Data Net asset value, beginning of year..... $27.42 $24.59 $26.68 $26.09 $23.20 $23.32 ------ ------ ------ ------ ------ ------ Income (loss) from investment operations: Net investment income ...................... 0.63 0.30 1.47 1.03 1.06 0.10 Net realized and unrealized gains (losses) on investments........... (2.73) (1.47) 2.10 1.39 3.37 0.49 ------ ------ ------ ------ ------ ------ Total from investment operations........... (2.10) (1.17) 3.57 2.42 4.43 0.59 ------ ------ ------ ------ ------ ------ Less distributions: Dividends from net investment income..... (0.83) -- (1.36) (1.09) (0.81) (0.15) Distributions from capital gains......... (1.59) (0.52) (1.47) (0.74) (0.73) (0.56) ------ ------ ------ ------ ------ ------ Total distributions... (2.42) (0.52) (2.83) (1.83) (1.54) (0.71) ------ ------ ------ ------ ------ ------ Net asset value, end of year.................. $22.90 $22.90 $27.42 $26.68 $26.09 $23.20 ====== ====== ====== ====== ====== ====== Total Return++......... (7.95%) (4.72%)# 14.35% 9.48% 19.57% 2.63% Ratios and Supplemental Data Net assets, end of year (millions)............ $2,063 $12 $4,035 $3,908 $3,033 $1,922 Ratio of operating expenses to average net assets+........... 1.23% 1.01%* 1.18% 1.21% 1.25% 1.26% Ratio of net investment income to average net assets+............... 2.75% 3.04%* 2.80% 3.08% 3.71% 2.70% Portfolio turnover rate.................. 9.89% 9.89% 20.63% 12.85% 9.64% 12.96% Year Ended March 31, ---------------------------------------------------- 1999 1998 1997 1996 1995 ------------------- ------ ------ ------ ------ Class A Class I . ------- --------- SoGen Overseas Fund Selected Per Share Data Net asset value, beginning of year..... $13.52 $12.31 $13.84 $13.26 $11.65 $11.54 ------ ------ ------ ------ ------ ------ Income (loss) from investment operations: Net investment income.. 0.15 0.41 0.88 0.61 0.48 0.14 Net realized and unrealized gains (losses) on investments........... (0.97) (1.10) 0.31 0.95 1.74 0.04 ------ ------ ------ ------ ------ ------ Total from investment operations........... (0.82) (0.69) 1.19 1.56 2.22 0.18 ------ ------ ------ ------ ------ ------ Less distributions: Dividends from net investment income..... (0.57) -- (0.83) (0.60) (0.44) (0.05) Distributions from capital gains......... (0.77) (0.25) (0.68) (0.38) (0.17) (0.02) ------ ------ ------ ------ ------ ------ Total distributions... (1.34) (0.25) (1.51) (0.98) (0.61) (0.07) ------ ------ ------ ------ ------ ------ Net asset value, end of year.................. $11.36 $11.37 $13.52 $13.84 $13.26 $11.65 ====== ====== ====== ====== ====== ====== Total Return++......... (6.46%) (5.53%)# 10.00% 12.16% 19.47% 1.56% Ratios and Supplemental Data Net assets, end of year (millions)............ $453 $3 $1,007 $953 $647 $439 Ratio of operating expenses to average net assets+........... 1.29% 1.03%* 1.22% 1.27% 1.37% 1.40% Ratio of net investment income to average net assets+............... 2.22% 1.97%* 2.20% 2.28% 3.31% 2.29% Portfolio turnover rate.................. 9.31% 9.31% 22.13% 15.18% 9.46% 3.16%
- -------- See Notes to Financial Highlights. 36 SoGen Funds, Inc. FINANCIAL HIGHLIGHTS (continued)
Year Ended March 31, ----------------------------------------- 1999 1998 1997 1996 1995 ------ ------ ------ ------ ------ SoGen Gold Fund Selected Per Share Data Net asset value, beginning of year............................ $7.31 $10.60 $12.25 $11.28 $11.42 ------ ------ ------ ------ ------ Income (loss) from investment operations: Net investment income............ 0.16 0.13 0.26 0.24 0.08 Net realized and unrealized gains (losses) on investments......... (1.82) (3.03) (1.75) 1.35 (0.10) ------ ------ ------ ------ ------ Total from investment operations..................... (1.66) (2.90) (1.49) 1.59 (0.02) ------ ------ ------ ------ ------ Less distributions: Dividends from net investment income.......................... (0.21) (0.39) (0.14) (0.35) (0.04) Distributions from capital gains........................... -- -- (0.02) (0.27) (0.08) ------ ------ ------ ------ ------ Total distributions............. (0.21) (0.39) (0.16) (0.62) (0.12) ------ ------ ------ ------ ------ Net asset value, end of year..... $5.44 $7.31 $10.60 $12.25 $11.28 ====== ====== ====== ====== ====== Total Return++................... (22.77%) (27.23%) (12.21%) 14.81% (0.14%) Ratios and Supplemental Data Net assets, end of year (millions)...................... $18 $31 $53 $63 $51 Ratio of operating expenses to average net assets+............. 1.62% 1.55% 1.45% 1.41% 1.46% Ratio of net investment income to average net assets+............. 2.01% 1.47% 1.20% 1.29% 0.79% Portfolio turnover rate.......... 37.73% 11.20% 16.83% 22.40% 11.56% Year Ended March 31, ----------------------------------------- 1999 1998 1997 1996 1995 ------ ------ ------ ------ ------ SoGen Money Fund Selected Per Share Data Net asset value, beginning of year............................ $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 ------ ------ ------ ------ ------ Income from investment operations: Net investment income............ 0.05 0.05 0.05 0.05 0.04 ------ ------ ------ ------ ------ Total from investment operations..................... 0.05 0.05 0.05 0.05 0.04 ------ ------ ------ ------ ------ Less distributions: Dividends from net investment income.......................... (0.05) (0.05) (0.05) (0.05) (0.04) ------ ------ ------ ------ ------ Total distributions............. (0.05) (0.05) (0.05) (0.05) (0.04) ------ ------ ------ ------ ------ Net asset value, end of year..... $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 ====== ====== ====== ====== ====== Total Return..................... 4.73% 4.97% 4.61% 5.03% 4.13% Ratios and Supplemental Data Net assets, end of year (millions)...................... $45 $19 $13 $8 $10 Ratio of operating expenses to average net assets+............. 0.69% 0.75% 0.75% 0.75% 0.75% Ratio of net investment income to average net assets+............. 4.60% 4.92% 4.63% 4.98% 4.14%
- -------- See Notes to Financial Highlights. 37 SoGen Funds, Inc. NOTES TO FINANCIAL HIGHLIGHTS . July 31, 1998 inception date for Class I shares. * Annualized # Not annualized. ++Does not give effect to the deduction of the sales load. + The ratio of operating expenses to average net assets without the effect of earnings credits, investment advisory fee waivers and expense reimbursements are as follows:
Year Ended March 31, ---------------------------------------- 1999 ----------------- Class A Class I . 1998 1997 1996 1995 ------- --------- ---- ---- ---- ---- SoGen International Fund........... 1.24% 1.63% 1.19% 1.21% 1.25% 1.26% SoGen Overseas Fund................ 1.29% 1.21% 1.22% 1.27% 1.38% 1.40% SoGen Gold Fund.................... 1.64% -- 1.56% 1.46% 1.43% 1.46% SoGen Money Fund................... 0.69% -- 1.01% 1.14% 0.97% 1.55% The ratio of net investment income to average net assets without the effect of earnings credits, investment advisory fee waiver and expense reimburse- ment are as follows: Year Ended March 31, ---------------------------------------- 1999 ----------------- Class A Class I . 1998 1997 1996 1995 ------- --------- ---- ---- ---- ---- SoGen International Fund........... 2.74% 2.42% 2.80% 3.08% 3.71% 2.70% SoGen Overseas Fund................ 2.22% 1.79% 2.20% 2.27% 3.30% 2.29% SoGen Gold Fund.................... 1.99% -- 1.46% 1.19% 1.26% 0.79% SoGen Money Fund................... 4.60% -- 4.66% 4.26% 4.76% 3.34%
38 INDEPENDENT AUDITORS' REPORT The Board of Directors and Shareholders of SoGen Funds, Inc.: We have audited the accompanying statements of assets and liabilities of SoGen Funds, Inc. consisting of SoGen International Fund, SoGen Overseas Fund, SoGen Gold Fund, and SoGen Money Fund, including the schedules of investments, as of March 31, 1999, and the related statements of operations for the year then ended, changes in net assets for each of the years in the two year period then ended, and the financial highlights for each of the years in the five year period then ended. These financial statements and financial highlights are the responsibility of the Fund's management. Our responsibility is to express an opinion on these financial statements and financial highlights based on our au- dits. We conducted our audits in accordance with generally accepted auditing stan- dards. Those standards require that we plan and perform the audits to obtain reasonable assurance about whether the financial statements and financial high- lights are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. Our procedures included confirmation of securities owned as of March 31, 1999, by correspondence with custodians. As to securities purchased or sold but not yet received or delivered, we performed other appropriate au- diting procedures. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion. In our opinion, the financial statements and financial highlights referred to above present fairly, in all material respects, the financial position of the SoGen Funds, Inc., consisting of SoGen International Fund, SoGen Overseas Fund, SoGen Gold Fund, and SoGen Money Fund, as of March 31, 1999, the results of their operations for the year then ended, the changes in their net assets for each of the years in the two year period then ended and their financial high- lights for each of the years in the five year period then ended in conformity with generally accepted accounting principles. /s/ KPMG LLP New York, New York May 17, 1999 39 SoGen Funds, Inc. TAX INFORMATION FISCAL YEAR ENDED MARCH 31, 1999 (UNAUDITED) The following tax information represents the designation of various tax bene- fits relating to the fiscal year ended March 31, 1999: CORPORATE DIVIDENDS RECEIVED DEDUCTION The percentage of investment company taxable income eligible for the divi- dends received deduction available to certain corporate shareholders with re- spect to the fiscal year ended March 31, 1999 are as follows: SoGen International Fund.......... 7.43% SoGen Overseas Fund............... 0.32% SoGen Gold Fund................... 56.05% SoGen Money Fund.................. -- %
CAPITAL GAINS DISTRIBUTIONS Capital gains distributions paid to shareholders by the Funds during the fis- cal year ended March 31, 1999, whether taken in shares or in cash, were desig- nated as follows: SoGen International Fund........ $197,235,306 SoGen Overseas Fund............. $ 44,901,829 SoGen Gold Fund................. $ -- SoGen Money Fund................ $ --
FOREIGN SOURCE INCOME AND FOREIGN TAX CREDITS For the fiscal year ended March 31, 1999, the income received from sources within foreign countries and possessions of the United States, and foreign taxes paid by the portfolios to such countries were as follows:
Net Foreign Amount Foreign Amount Source Per Withholding Per Income Share Tax Share ----------- ------ ----------- ------ SoGen International Fund............. $47,501,095 $0.52 $2,942,245 $0.03 SoGen Overseas Fund.................. $17,485,205 $0.44 $1,206,466 $0.03 SoGen Gold Fund...................... $ -- $ -- $ -- $ -- SoGen Money Fund..................... $ -- $ -- $ -- $ --
U.S. TREASURY PERCENTAGES For the fiscal year ended March 31, 1999, dividends paid from ordinary income derived from interest on direct obligations of the United States government were as follows: SoGen International Fund........... 6.04% SoGen Overseas Fund................ -- % SoGen Gold Fund.................... -- % SoGen Money Fund................... -- %
In addition, during each of the Fund's fiscal quarters, the percentage of the fair market value of the Fund's assets represented by direct obligations of the United States government did not exceed 50%. The above figures may differ from those cited elsewhere in this report due to differences in the calculations of income and capital gains for Securities and Exchange Commission (financial reporting) purposes and Internal Revenue Service (tax) purposes. 40 SoGen Funds, Inc. 1221 Avenue of the Americas New York, NY 10020 DIRECTORS AND OFFICERS Directors Philippe Collas Dominique Raillard Jean-Marie Eveillard Nathan Snyder Fred J. Meyer Officers Philippe Collas...........................................Chairman of the Board Jean-Marie Eveillard..................................................President Philip J. Bafundo.......................Vice President, Secretary and Treasurer Edwin S. Olsen...................................................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. SG Cowen 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 LLP 30 Rockefeller Plaza 757 Third Avenue New York, NY 10112 New York, NY 10017 DOMESTIC CUSTODIAN GLOBAL CUSTODIAN Investors Fiduciary Trust Company The Chase Manhattan Bank 801 Pennsylvania 4 Chase MetroTech Center Kansas City, MO 64105 Brooklyn, NY 11245 SHAREHOLDER SERVICING AGENT DST Systems, Inc. 1004 Baltimore Kansas City, MO 64105 (800) 334-2143 This report is not authorized for distribution to prospective investors unless preceded or accompanied by a currently effective prospectus of SoGen Funds, Inc. [GRAPHIC] SOGEN FUNDS, INC. 1221 Avenue of the Americas New York, NY 10020 (800) 334-2143 -----END PRIVACY-ENHANCED MESSAGE-----