UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM N-CSR
CERTIFIED SHAREHOLDER REPORT OF REGISTERED MANAGEMENT
INVESTMENT COMPANIES
Investment Company Act file number 811-08050
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The Asia Tigers Fund, Inc.
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(Exact name of registrant as specified in charter)
200 Park Avenue
New York, NY 10166
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(Address of principal executive offices) (Zip code)
Simpson Thacher & Bartlett LLP
425 Lexington Avenue
New York, NY 10017
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(Name and address of agent for service)
Registrant's telephone number, including area code: 212-667-4939
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Date of fiscal year end: October 31, 2005
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Date of reporting period: April 30, 2005
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Form N-CSR is to be used by management investment companies to file reports with
the Commission not later than 10 days after the transmission to stockholders of
any report that is required to be transmitted to stockholders under Rule 30e-1
under the Investment Company Act of 1940 (17 CFR 270.30e-1). The Commission may
use the information provided on Form N-CSR in its regulatory, disclosure review,
inspection, and policymaking roles.
A registrant is required to disclose the information specified by Form N-CSR,
and the Commission will make this information public. A registrant is not
required to respond to the collection of information contained in Form N-CSR
unless the Form displays a currently valid Office of Management and Budget
("OMB") control number. Please direct comments concerning the accuracy of the
information collection burden estimate and any suggestions for reducing the
burden to Secretary, Securities and Exchange Commission, 450 Fifth Street, NW,
Washington, DC 20549-0609. The OMB has reviewed this collection of information
under the clearance requirements of 44 U.S.C. ss. 3507.
ITEM 1. REPORTS TO STOCKHOLDERS.
The Report to Shareholders is attached herewith.
The Asia Tigers Fund,Inc.
Semiannual Report
April 30, 2005
ADVANTAGE ADVISERS, INC.
The Asia Tigers Fund, Inc.
June 27, 2005
DEAR FUND SHAREHOLDER,
We are pleased to provide you with the unaudited financial statements of The
Asia Tigers Fund, Inc. (the "Fund") for the six months ended April 30, 2005.
The Fund's net asset value ("NAV") closed at $12.42 on April 30, 2005,
representing an increase of 13.1% during the six months ended on that date. The
Fund outperformed its benchmark, the MSCI Asia Free ex-Japan*, which increased
11.09% during the same six month period.
Despite a challenging environment, Asian equity markets posted solid gains for
the six months ended April 30, 2005, as a strong year-end rally in 2004 spilled
over into a decent start for 2005. Surprisingly, Asia's outperformance occurred
despite: a) the U.S. Federal Reserve continuing to raise interest rates; b) oil
prices surging to nearly $60 per barrel before settling back to the low $50's
per barrel by April's end and c) rising trade tensions between China and the
United States. Offsetting this negative news flow, however, was the fact that
global monetary conditions remained highly accommodative (the Federal Reserve's
rate hikes notwithstanding) while Asia continued to show growth rates far more
impressive than the rest of the world.
As mid-year approaches, investor apprehension continues to be focused largely on
China, the region's key growth engine. Will its economy achieve the desired
`soft landing'? When will its currency (reminbi) be revalued? Are trade tensions
with the United States poised to escalate further? In addition, the question
remains of when the U.S. Federal Reserve will be done raising interest rates.
Despite these uncertainties, we believe Asian markets stand a good chance of
continuing to climb their `wall of worry', underpinned by global equity flows
attracted to the region's superior growth prospects and undemanding valuations.
On behalf of the Board of Directors, we thank you for your participation and
continued support of the Fund. If you have any questions, please do not hesitate
to call our toll-free number, 800-421-4777.
Sincerely,
/s/ Bryan McKigney
Bryan McKigney
Chairman, President and Director
*Please note that the benchmark is an unmanaged index. Investors cannot directly
invest in the index. The index does not reflect transaction costs or manager
fees.
PAST PERFORMANCE IS NO GUARANTEE OF FUTURE RESULTS. There is no guarantee that
the Fund's or any other investment technique will be effective under all market
conditions.
1
THE ASIA TIGERS FUND, INC.
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FUNDAMENTAL PERIODIC REPURCHASE POLICY
The Fund has adopted the following fundamental policy regarding periodic
repurchases:
a) The Fund will make offers to repurchase its shares at quarterly intervals
pursuant to Rule 23c-3 under the Investment Company Act of 1940, as
amended from time to time ("Offers"). The Board of Directors may place
such conditions and limitations on Offers as may be permitted under Rule
23c-3.
b) 14 days prior to the last Friday of each of the Fund's fiscal quarters,
or the next business day if such Friday is not a business day, will be
the deadline (the "Repurchase Request Deadline") by which the Fund must
receive repurchase requests submitted by stockholders in response to the
most recent Offer.
c) The date on which the repurchase price for shares is to be determined
(the "Repurchase Pricing Date") shall occur no later than the last Friday
of each of the Fund's fiscal quarters, or the next business day if such
day is not a business day.
d) Offers may be suspended or postponed under certain circumstances, as
provided for in Rule 23c-3.
(For further details, see Note D to the Financial Statements.)
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2
THE ASIA TIGERS FUND, INC.
APRIL 30, 2005
Schedule of Investments (UNAUDITED)
COMMON STOCKS (99.32% of holdings)
NUMBER PERCENT OF
OF SHARES SECURITY HOLDINGS COST VALUE
- --------------------------------------------------------------------------------------------------------
CHINA 6.41%
AIRPORT DEVELOPMENT & MAINTENANCE 0.62%
1,384,000 Beijing Capital International Airport Co., Ltd. ...... $ 503,268 $ 483,773
----------- -----------
COAL 1.66%
962,000 Yanzhou Coal Mining Company Ltd. ..................... 375,801 1,301,868
----------- -----------
MACHINERY - MATERIAL HANDLING 0.61%
409,000 Shanghai Zhenhua Port Machinery Co., Class B ......... 414,581 474,440
----------- -----------
METAL PROCESSORS & FABRICATION 0.68%
1,106,280 Jiangxi Copper Co., Ltd. ............................. 623,740 528,604
----------- -----------
OIL COMPANIES - INTEGRATED 1.60%
31,849 China Petroleum and Chemical Corp. ADR ............... 837,670 1,248,162
----------- -----------
REAL ESTATE - OPERATIONS & DEVELOPMENT 1.24%
1,220,135 China Vanke Co., Ltd. Class B ........................ 439,959 973,504
----------- -----------
TOTAL CHINA .......................................... 3,195,019 5,010,351
----------- -----------
HONG KONG 22.33%
ATHLETIC FOOTWEAR 0.63%
173,600 Yue Yuen Industrial Holdings ......................... 308,659 492,132
----------- -----------
CELLULAR TELECOMMUNICATIONS 1.81%
408,600 China Mobile (Hong Kong) Ltd. ........................ 1,188,761 1,415,147
----------- -----------
COMMERCIAL BANKS - NON-US 2.27%
86,002 Dah Sing Financial Holdings, Ltd. .................... 452,772 554,350
53,200 Hang Seng Bank Ltd. .................................. 548,066 726,776
30,500 HSBC Holdings PLC .................................... 347,585 489,045
----------- -----------
1,348,423 1,770,171
----------- -----------
DISTRIBUTION & WHOLESALE 2.17%
227,500 Esprit Holdings Ltd. ................................. 305,537 1,692,578
----------- -----------
DIVERSIFIED OPERATIONS 3.00%
204,810 Hutchison Whampoa Ltd. ............................... 925,682 1,825,893
156,000 Wharf Holdings Ltd. .................................. 456,764 519,279
----------- -----------
1,382,446 2,345,172
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3
THE ASIA TIGERS FUND, INC.
APRIL 30, 2005
Schedule of Investments (continued) (UNAUDITED)
COMMON STOCKS (continued)
NUMBER PERCENT OF
OF SHARES SECURITY HOLDINGS COST VALUE
- --------------------------------------------------------------------------------------------------------
HONG KONG (CONTINUED)
ELECTRIC - GENERATION 0.77%
1,090,000 China Resources Power Holdings Co. ................... $ 602,433 $ 604,717
----------- -----------
FINANCE - OTHER SERVICES 0.71%
226,000 Hong Kong Exchanges & Clearing Ltd. .................. 420,335 550,809
----------- -----------
HOTELS & MOTELS 0.64%
5,422,000 Regal Hotels International Holdings Ltd. ............. 343,151 500,762
----------- -----------
MACHINERY - GENERAL INDUSTRY 0.44%
466,000 Fongs' Industries Co., Ltd ........................... 398,622 346,700
----------- -----------
OIL COMPANIES - EXPLORATION & PRODUCTION 1.36%
19,650 CNOOC Ltd. ADR ....................................... 958,565 1,058,742
----------- -----------
REAL ESTATE - OPERATIONS & DEVELOPMENT 6.10%
177,700 Cheung Kong Holdings Ltd. ............................ 1,291,047 1,675,383
1,510,000 Emperor Entertainment Hotel Ltd.+ .................... 361,041 309,910
1,037,000 Far East Consortium .................................. 250,215 442,292
212,000 Hopewell Holdings Ltd. ............................... 148,468 515,329
344,326 Kerry Properties Ltd. ................................ 579,940 753,067
112,300 Sun Hung Kai Properties Ltd. ......................... 812,231 1,073,187
----------- -----------
3,442,942 4,769,168
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RETAIL - RESTAURANTS 0.69%
492,000 Cafe De Coral Holdings Ltd. .......................... 386,717 539,598
----------- -----------
TELECOMMUNICATIONS EQUIPMENT 0.37%
485,000 Foxconn International Holdings, Ltd.+ ................ 250,557 290,846
----------- -----------
TELECOMMUNICATIONS SERVICES 0.94%
2,186,000 China Telecom Corp., Ltd. ............................ 700,460 736,069
----------- -----------
WEB PORTALS & ISP 0.43%
2,288,000 Tom Online, Inc.+ .................................... 406,836 337,515
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TOTAL HONG KONG ...................................... 12,444,444 17,450,126
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4
THE ASIA TIGERS FUND, INC.
APRIL 30, 2005
Schedule of Investments (continued) (UNAUDITED)
COMMON STOCKS (continued)
NUMBER PERCENT OF
OF SHARES SECURITY HOLDINGS COST VALUE
- --------------------------------------------------------------------------------------------------------
INDIA 9.47%
APPLICATIONS SOFTWARE 2.59%
35,526 Infosys Technologies Ltd. ............................ $ 759,191 $ 1,540,317
52,525 Satyam Computer Services Ltd.+ ....................... 442,938 481,871
----------- -----------
1,202,129 2,022,188
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COMMERCIAL BANKS - NON-US 1.79%
25,600 Punjab National Bank Ltd. ............................ 228,991 203,600
89,080 State Bank of India .................................. 363,501 1,196,738
----------- -----------
592,492 1,400,338
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ELECTRIC - GENERATION 0.47%
194,800 National Thermal Power Corp., Ltd. ................... 266,232 367,851
----------- -----------
ELECTRONIC COMPONENTS - MISCELLANEOUS 0.72%
32,800 Bharat Electronics Ltd. .............................. 460,638 559,665
----------- -----------
METALS - ALUMINUM 0.79%
22,555 Hindalco Industries Ltd. ............................. 654,924 614,731
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PETROCHEMICALS 0.89%
57,438 Reliance Industries Ltd. ............................. 286,065 696,302
----------- -----------
POWER CONVERSION & SUPPLY EQUIPMENT 0.91%
39,000 Bharat Heavy Electricals Ltd. ........................ 330,552 710,431
----------- -----------
TELECOMMUNICATIONS SERVICES 0.84%
138,680 Bharti Tele-Ventures Ltd. ............................ 429,607 659,949
----------- -----------
TEXTILE - PRODUCTS 0.47%
47,600 Mahavir Spinning Mills Ltd. .......................... 252,077 369,985
----------- -----------
TOTAL INDIA .......................................... 4,474,716 7,401,440
----------- -----------
INDONESIA 1.78%
COMMERCIAL BANKS - NON-US 0.68%
1,660,830 PT Bank Central Asia Tbk ............................. 415,368 534,211
----------- -----------
NON-FERROUS METALS 0.51%
270,000 PT International Nickel Indonesia Tbk ................ 349,595 395,397
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5
THE ASIA TIGERS FUND, INC.
APRIL 30, 2005
Schedule of Investments (continued) (UNAUDITED)
COMMON STOCKS (continued)
NUMBER PERCENT OF
OF SHARES SECURITY HOLDINGS COST VALUE
- --------------------------------------------------------------------------------------------------------
INDONESIA (CONTINUED)
TELECOMMUNICATIONS SERVICES 0.59%
1,034,000 PT Telekomunikasi Indonesia+ ......................... $ 477,495 $ 462,380
----------- -----------
TOTAL INDONESIA ...................................... 1,242,458 1,391,988
----------- -----------
MALAYSIA 5.45%
AGRICULTURAL OPERATIONS 0.74%
241,400 IOI Corp. BHD ........................................ 371,052 581,266
----------- -----------
BUILDING & CONSTRUCTION - MISCELLANEOUS 0.68%
4,480,800 Dialog Group BHD ..................................... 537,469 530,621
----------- -----------
BUILDING PRODUCTS - WOOD 0.59%
340,000 WTK Holdings BHD ..................................... 550,435 460,789
----------- -----------
CELLULAR TELECOMMUNICATIONS 0.90%
277,650 Maxis Communications BHD ............................. 438,442 705,085
----------- -----------
LOTTERY SERVICES 0.53%
389,700 Berjaya Sports Toto BHD .............................. 400,370 412,262
----------- -----------
RESORTS & THEME PARKS 0.81%
253,500 Resorts World BHD .................................... 579,794 637,085
----------- -----------
TRANSPORTATION - MARINE 1.20%
199,500 Malaysia International Shipping Corp. BHD ............ 455,085 934,500
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TOTAL MALAYSIA ....................................... 3,332,647 4,261,608
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SINGAPORE 8.40%
COMMERCIAL BANKS - NON-US 3.62%
228,100 DBS Group Holdings Ltd. .............................. 1,548,085 1,995,614
94,756 United Overseas Bank Ltd. ............................ 523,248 829,006
----------- -----------
2,071,333 2,824,620
----------- -----------
FOOD - MEAT PRODUCTS 0.66%
784,500 People's Food Holdings Ltd. .......................... 418,577 518,360
----------- -----------
REAL ESTATE - OPERATIONS & DEVELOPMENT 0.86%
434,500 Keppel Land Ltd. ..................................... 336,757 669,893
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6
THE ASIA TIGERS FUND, INC.
APRIL 30, 2005
Schedule of Investments (continued) (UNAUDITED)
COMMON STOCKS (continued)
NUMBER PERCENT OF
OF SHARES SECURITY HOLDINGS COST VALUE
- --------------------------------------------------------------------------------------------------------
SINGAPORE (CONTINUED)
TELECOMMUNICATIONS SERVICES 1.17%
585,720 Singapore Telecommunications Ltd. .................... $ 729,903 $ 917,371
----------- -----------
TRANSPORTATION - MARINE 0.74%
757,200 Ezra Holdings Ltd. ................................... 444,490 579,076
----------- -----------
WATER TREATMENT SYSTEMS 1.35%
506,500 Hyflux Limited ....................................... 402,003 1,053,595
----------- -----------
TOTAL SINGAPORE ...................................... 4,403,063 6,562,915
----------- -----------
SOUTH KOREA 25.95%
AIRLINES 0.00%
5 Korean Air Lines Co., Ltd.+ .......................... 48 92
----------- -----------
AUTO - CARS & LIGHT TRUCKS 0.75%
10,860 Hyundai Motor Co. .................................... 364,339 587,057
----------- -----------
BUILDING & CONSTRUCTION - MISCELLANEOUS 1.12%
29,030 GS Engineering & Construction Corp. .................. 533,512 871,977
----------- -----------
CELLULAR TELECOMMUNICATIONS 1.61%
7,670 SK Telecom Co., Ltd. ................................. 1,457,964 1,257,692
----------- -----------
COMMERCIAL BANKS - NON-US 1.60%
29,721 Kookmin Bank ......................................... 632,906 1,251,913
----------- -----------
DIVERSIFIED FINANCIAL SERVICES 1.89%
57,140 Shinhan Financial Group Co., Ltd. .................... 712,356 1,475,634
----------- -----------
DIVERSIFIED OPERATIONS 0.92%
30,150 GS Holdings Corp. .................................... 660,749 716,633
----------- -----------
ELECTRIC - INTEGRATED 1.60%
43,040 Korea Electric Power Corp. ........................... 933,448 1,247,474
----------- -----------
ELECTRIC PRODUCTS - MISCELLANEOUS 9.47%
8,900 LG Electronics, Inc. ................................. 540,047 593,571
15,021 Samsung Electronics Company Ltd. ..................... 3,685,330 6,809,239
----------- -----------
4,225,377 7,402,810
----------- -----------
7
THE ASIA TIGERS FUND, INC.
APRIL 30, 2005
Schedule of Investments (continued) (UNAUDITED)
COMMON STOCKS (continued)
NUMBER PERCENT OF
OF SHARES SECURITY HOLDINGS COST VALUE
- --------------------------------------------------------------------------------------------------------
SOUTH KOREA (CONTINUED)
NON-FERROUS METALS 0.82%
20,460 Korea Zinc Co., Ltd. ................................. $ 405,110 $ 636,105
----------- -----------
PETROCHEMICALS 0.72%
23,500 LG Petrochemical Co., Ltd. ........................... 568,569 565,640
----------- -----------
PROPERTY & CASUALTY INSURANCE 0.63%
87,260 LG Insurance Co., Ltd. ............................... 370,873 494,453
----------- -----------
RETAIL - DISCOUNT 0.81%
1,990 Shinsegae Co., Ltd. .................................. 558,276 634,661
----------- -----------
SHIPBUILDING 0.62%
27,280 Daewoo Shipbuilding and Marine Engineering
Co., Ltd. .......................................... 423,422 486,996
----------- -----------
STEEL - PRODUCERS 2.78%
25,770 Dongkuk Steel Mill Co., Ltd. ......................... 425,029 365,706
7,830 POSCO ................................................ 902,127 1,409,573
8,750 POSCO ADR ............................................ 239,316 398,387
----------- -----------
1,566,472 2,173,666
----------- -----------
TRANSPORTATION - MARINE 0.61%
17,390 Hanjin Shipping Co., Ltd. ............................ 304,224 476,128
----------- -----------
TOTAL SOUTH KOREA .................................... 13,717,645 20,278,931
----------- -----------
TAIWAN 16.10%
BUILDING PRODUCTS - CEMENT & AGGREGATION 1.06%
1,363,000 Taiwan Cement Corp. .................................. 778,783 828,147
----------- -----------
CELLULAR TELECOMMUNICATIONS 1.15%
733,000 Far EasTone Telecommunications Co., Ltd. ............. 758,440 897,762
----------- -----------
CHEMICALS - PLASTICS 0.96%
437,420 Formosa Plastic Corp. ................................ 653,307 751,158
----------- -----------
COMMERCIAL BANKS - NON-US 1.74%
1,518,619 Taishin Financial Holdings Co., Ltd. ................. 652,319 1,357,340
----------- -----------
8
THE ASIA TIGERS FUND, INC.
APRIL 30, 2005
Schedule of Investments (continued) (UNAUDITED)
COMMON STOCKS (continued)
NUMBER PERCENT OF
OF SHARES SECURITY HOLDINGS COST VALUE
- --------------------------------------------------------------------------------------------------------
TAIWAN (CONTINUED)
COMPUTERS 1.49%
500,672 Advantech Co., Ltd. .................................. $ 663,729 $ 1,165,582
1 Compal Electronics, Inc. ............................. 1 1
----------- -----------
663,730 1,165,583
----------- -----------
DIVERSIFIED FINANCIAL SERVICES 1.67%
1,142,430 Chinatrust Financial Holding Co. ..................... 852,442 1,306,062
----------- -----------
ELECTRONIC COMPONENTS - MISCELLANEOUS 2.33%
259,000 Au Optronics Corp. ................................... 388,360 409,567
297,350 HON HAI Precision Industry ........................... 1,030,503 1,412,058
----------- -----------
1,418,863 1,821,625
----------- -----------
METAL PROCESSORS & FABRICATION 0.40%
59,200 Catcher Technology Co., Ltd. ......................... 177,215 314,259
----------- -----------
SEMICONDUCTOR COMPONENTS -
INTEGRATED CIRCUITS 5.30%
1,032,000 Advanced Semiconductor Engineering, Inc.+ ............ 732,543 686,438
1,802,372 Taiwan Semiconductor Manufacturing Co., Ltd.+ ........ 3,346,526 2,991,369
790,000 United Microelectronics Corp.+ ....................... 509,795 464,840
----------- -----------
4,588,864 4,142,647
----------- -----------
TOTAL TAIWAN ......................................... 10,543,963 12,584,583
----------- -----------
THAILAND 3.43%
BUILDING PRODUCTS - CEMENT & AGGREGATION 1.14%
148,020 Siam Cement PCL ...................................... 468,003 892,771
----------- -----------
CELLULAR TELECOMMUNICATIONS 0.83%
268,200 Advanced Info Service PCL ............................ 390,468 645,692
----------- -----------
COAL 0.50%
95,400 Banpu PCL ............................................ 370,302 389,240
----------- -----------
COMMERCIAL BANKS - NON-US 0.17%
114,000 Siam Commercial Bank PCL ............................. 154,471 136,505
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9
THE ASIA TIGERS FUND, INC.
APRIL 30, 2005
Schedule of Investments (concluded) (UNAUDITED)
COMMON STOCKS (continued)
NUMBER PERCENT OF
OF SHARES SECURITY HOLDINGS COST VALUE
- --------------------------------------------------------------------------------------------------------
THAILAND (CONTINUED)
OIL COMPANIES - EXPLORATION & PRODUCTION 0.79%
69,700 PTT Exploration & Production PCL ..................... $ 512,898 $ 614,688
----------- -----------
TOTAL THAILAND ....................................... 1,896,142 2,678,896
----------- -----------
TOTAL COMMON STOCKS .................................. 55,250,097 77,620,838
PREFERRED STOCK (0.68% of holdings)
THAILAND 0.68%
COMMERCIAL BANKS - NON-US 0.68%
444,205 Siam Commercial Bank PLC - 5.25% Preferred+ .......... 151,802 529,084
----------- -----------
TOTAL THAILAND ....................................... 151,802 529,084
----------- -----------
TOTAL PREFERRED STOCK ................................ 151,802 529,084
----------- -----------
TOTAL INVESTMENTS++............................100.00% $55,401,899 $78,149,922
=========== ===========
This Schedule of Investments reflects each company's country of domicile. The
companies may also be subject to the risks of other countries.
FOOTNOTES AND ABBREVIATIONS
ADR - American Depository Receipts
+ Non-income producing security.
++ Aggregate cost for federal income tax purposes was $55,833,680.
The aggregate gross unrealized appreciation (depreciation) for all
securities was as follows:
Excess of value over tax cost $23,619,263
Excess of tax cost over value (1,303,021)
-----------
$22,316,242
===========
See accompanying notes to financial statements.
10
THE ASIA TIGERS FUND, INC.
APRIL 30, 2005
Statement of Assets and Liabilities (UNAUDITED)
ASSETS
Investments, at value (Cost $55,401,899) ................................................................ $ 78,149,922
Cash (including $2,009,557 of foreign currency holdings with a cost
of $1,989,547) ....................................................................................... 4,667,900
Receivables:
Securities sold ...................................................................................... 592,790
Dividends ............................................................................................ 123,957
Prepaid expenses ........................................................................................ 28,962
-------------
TOTAL ASSETS .......................................................................... 83,563,531
-------------
LIABILITIES
Payable for fund shares redeemed ........................................................................ 4,054,827
Payable for securities purchased ........................................................................ 201,260
Due to Investment Manager ............................................................................... 68,794
Due to Administrator .................................................................................... 13,758
Accrued expenses ........................................................................................ 161,182
Deferred foreign withholding taxes payable .............................................................. 418,890
-------------
TOTAL LIABILITIES ..................................................................... 4,918,711
-------------
NET ASSETS ............................................................................ $ 78,644,820
=============
NET ASSET VALUE PER SHARE
($78,644,820/6,329,630 SHARES ISSUED AND OUTSTANDING) ................................. $ 12.42
=============
NET ASSETS CONSIST OF:
Capital stock, $0.001 par value; 20,514,984 shares issued
(100,000,000 shares authorized) ...................................................................... $ 20,515
Paid-in capital ......................................................................................... 277,297,012
Cost of 14,185,354 shares repurchased ................................................................... (126,412,391)
Undistributed net investment income ..................................................................... 97,719
Accumulated net realized loss on investments ............................................................ (94,710,050)
Net unrealized appreciation in value of investments and on translation of
other assets and liabilities denominated in foreign currencies
(net of deferred foreign withholding taxes of $418,890) .............................................. 22,352,015
-------------
$ 78,644,820
=============
See accompanying notes to financial statements.
11
THE ASIA TIGERS FUND, INC.
FOR THE SIX
Statement of Operations MONTHS ENDED
APRIL 30, 2005
(UNAUDITED)
INVESTMENT INCOME
Dividends (Net of taxes withheld of $117,921) ............................................ $ 941,568
Interest ................................................................................. 4,445
-----------
TOTAL INVESTMENT INCOME ................................................ 946,013
-----------
EXPENSES
Management fees ................................................... $418,482
Legal fees ........................................................ 106,615
Administration fees ............................................... 83,260
Custodian fees .................................................... 74,736
Audit and tax fees ................................................ 59,975
Printing .......................................................... 34,031
Directors' fees ................................................... 23,422
Insurance ......................................................... 16,180
NYSE fees ......................................................... 12,985
Transfer agent fees ............................................... 13,684
ICI fees .......................................................... 1,660
Interest expense .................................................. 427
Miscellaneous ..................................................... 11,081
--------
TOTAL EXPENSES ......................................................... 856,538
-----------
NET INVESTMENT INCOME .................................................. 89,475
-----------
NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS,
FOREIGN CURRENCY HOLDINGS AND TRANSLATION OF OTHER ASSETS
AND LIABILITIES DENOMINATED IN FOREIGN CURRENCIES:
Net realized gain (loss) from:
Security transactions (net of capital gains tax of $166,043) .......................... 4,039,720
Foreign currency related transactions ................................................. (136,623)
-----------
3,903,097
-----------
Net change in unrealized appreciation in value of investments, foreign currency holdings
and translation of other assets and liabilities denominated in foreign currencies
(net of change in deferred foreign withholding taxes of ($29,089)) .................... 6,013,979
-----------
Net realized and unrealized gain on investments, foreign currency holdings and
translation of other assets and liabilities denominated in foreign
currencies ............................................................................ 9,917,076
-----------
Net increase in net assets resulting from operations ..................................... $10,006,551
===========
See accompanying notes to financial statements.
12
THE ASIA TIGERS FUND, INC.
Statements of Changes in Net Assets
FOR THE SIX
MONTHS ENDED FOR THE YEAR
APRIL 30, 2005 ENDED
(UNAUDITED) OCTOBER 31, 2004
- ------------------------------------------------------------------------------------------------------------------------------------
INCREASE (DECREASE) IN NET ASSETS
OPERATIONS
Net investment income .................................................................. $ $89,475 $ 567,795
Net realized gain on investments and foreign currency
related transactions ................................................................ 3,903,097 9,440,094
Net change in unrealized appreciation (depreciation) in value of
investments, foreign currency holdings and translation of
other assets and liabilities denominated in foreign currencies ...................... 6,013,979 (5,999,582)
----------- ------------
Net increase in net assets resulting from operations ................................... 10,006,551 4,008,307
----------- ------------
DISTRIBUTION TO SHAREHOLDERS
Net investment income ($0.00 and $0.07 per share, respectively) ........................ -- (602,747)
----------- ------------
Decrease in net assets resulting from distributions .................................... -- (602,747)
----------- ------------
CAPITAL SHARE TRANSACTIONS
Shares repurchased under Repurchase Offers (683,810 and 1,597,225
shares, respectively) (net of repurchase fees of $168,527 and
$358,879, respectively) (including expenses of $133,107
and $271,043, respectively) ......................................................... (8,390,879) (17,856,056)
----------- ------------
Net decrease in net assets resulting from capital share transactions ................... (8,390,879) (17,856,056)
----------- ------------
Total increase/(decrease) in net assets ................................................ 1,615,672 (14,450,496)
NET ASSETS
Beginning of period .................................................................... 77,029,148 91,479,644
----------- ------------
End of period (including undistributed net investment income of
$97,719 and $8,244, respectively) ................................................... $78,644,820 $ 77,029,148
=========== ============
See accompanying notes to financial statements.
13
THE ASIA TIGERS FUND, INC.
Financial Highlights
FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD
FOR THE SIX FOR THE YEAR FOR THE YEAR FOR THE YEAR FOR THE YEAR FOR THE YEAR
MONTHS ENDED ENDED ENDED ENDED ENDED ENDED
APRIL 30, 2005 OCTOBER 31, OCTOBER 31, OCTOBER 31, OCTOBER 31, OCTOBER 31,
(UNAUDITED) 2004 2003 2002 2001 2000
- ----------------------------------------------------------------------------------------------------------------------------------
PER SHARE OPERATING PERFORMANCE
Net asset value, beginning of period ..... $10.98 $10.62 $ 7.65 $6.89 $9.55 $11.02
------ ------ ------ ----- ----- ------
Net investment income .................... 0.01 1 0.07 1 0.05 1 0.01 1 0.03 0.32
Net realized and unrealized gains
(losses) on investments, foreign
currency holdings, and translation
of other assets and liabilities
denominated in foreign
currencies 2 .......................... 1.42 0.35 2.87 0.60 (2.42) (1.86)
------ ------ ------ ----- ----- ------
Net increase (decrease) from
investment operations ................. 1.43 0.42 2.92 0.61 (2.39) (1.54)
------ ------ ------ ----- ----- ------
Less distributions:
Dividends from net investment
income ................................ -- (0.07) -- -- (0.29) (0.07)
------ ------ ------ ----- ----- ------
Total dividends and distributions ........ -- (0.07) -- -- (0.29) (0.07)
------ ------ ------ ----- ----- ------
Capital share transactions
Anti-dilutive effect of Tender Offer .. -- -- -- 0.14 -- --
Anti-dilutive effect of Repurchase
Offers .............................. 0.01 0.01 0.05 0.01 -- --
Anti-dilutive effect of
Share Repurchase Program ............ -- -- -- -- 4 0.02 0.14
------ ------ ------ ----- ----- ------
Total capital share transactions ......... 0.01 0.01 0.05 0.15 0.02 0.14
------ ------ ------ ----- ----- ------
Net asset value, end of period ........... $12.42 $10.98 $10.62 $7.65 $6.89 $ 9.55
====== ====== ====== ===== ===== ======
Per share market value, end of period .... $11.11 $10.02 $10.30 $6.77 $5.79 $ 7.13
TOTAL INVESTMENT RETURN BASED
ON MARKET VALUE3 ...................... 10.88% (2.13)% 52.14% 16.93% (15.62)% (16.82)%
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (in 000s) ...... $78,645 $77,029 $91,480 $100,438 $134,112 $188,204
Ratios of expenses to average net assets . 2.04% 5 1.99% 1.95% 1.78% 1.58% 1.69%
Ratios of net investment income
(loss) to average net assets .......... 0.22% 5 0.65% 0.60% 0.06% 0.31% 2.50%
Portfolio turnover ....................... 20.19% 39.79% 33.10% 41.32% 28.98% 31.42%
See page 15 for footnotes.
14
THE ASIA TIGERS FUND, INC.
Financial Highlights (concluded)
FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD
1 Based on average shares outstanding throughout the period.
2 Net of deferred foreign withholding taxes of less than $0.01, less than
$0.01, $0.03, less than $0.01, $0.06 and $0.03 per share for the six months
ended April 30, 2005 and for the years ended October 31, 2004, October 31,
2003, October 31, 2002, October 31, 2001 and October 31, 2000, respectively.
3 Total investment return is calculated assuming a purchase of common stock at
the current market price on the first day and a sale at the current market
price on the last day of each period reported. Dividends and distributions,
if any, are assumed, for purposes of this calculation, to be reinvested at
prices obtained under the Fund's dividend reinvestment plan. Total investment
return does not reflect brokerage commissions or sales charges. Past
performance is not a guarantee of future results.
4 Less than $0.01 per share.
5 Annualized.
See accompanying notes to financial statements.
15
THE ASIA TIGERS FUND, INC.
APRIL 30, 2005
Notes to Financial Statements (UNAUDITED)
NOTE A: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
The Asia Tigers Fund, Inc. (the "Fund") was incorporated in Maryland on
September 23, 1993 and commenced operations on November 29, 1993. The Fund is
registered under the Investment Company Act of 1940, as amended (the "1940
Act"), as a closed-end, non-diversified management investment company. The
Fund's investment objective is long-term capital appreciation, which it seeks to
achieve by investing primarily in equity securities of Asian companies.
The preparation of financial statements in accordance with accounting principles
generally accepted in the United States of America requires management to make
estimates and assumptions that affect the reported amounts and disclosures in
the financial statements. Actual results could differ from those estimates.
SIGNIFICANT ACCOUNTING POLICIES ARE AS FOLLOWS:
PORTFOLIO VALUATION. Investments are stated at value in the accompanying
financial statements. In valuing the Fund's assets, all securities for which
market quotations are readily available are generally valued:
(i) at the last sale price prior to the time of determination if there was
a sale on the date of determination,
(ii) at the mean between the last current bid and asked prices if there was
no sales price on such date and bid and asked quotations are available,
and
(iii) at the bid price if there was no sales price on such date and only bid
quotations are available.
Securities that are traded over-the-counter are valued, if bid and asked
quotations are available, at the mean between the current bid and asked prices.
Securities for which sales prices and bid and asked quotations are not available
on the date of determination may be valued at the most recently available prices
or quotations under policies adopted by the Board of Directors. Investments in
short-term debt securities having a maturity of 60 days or less are valued at
amortized cost which approximates market value. All other securities and assets
are carried at fair value as determined in good faith by, or under the direction
of, the Board of Directors.
The net asset value per share of the Fund is calculated weekly and at the end of
each month.
INVESTMENT TRANSACTIONS AND INVESTMENT INCOME. Investment transactions are
accounted for on the trade date. The cost of investments sold is determined by
use of the specific identification method for both financial reporting and
income tax purposes. Interest income is recorded on an accrual basis; dividend
income is recorded on the ex-dividend date or when known. The collectibility of
income receivable from foreign securities is evaluated periodically, and any
resulting allowances for uncollectible amounts are reflected currently in the
determination of investment income.
TAX STATUS. No provision is made for U.S. Federal income or excise taxes as it
is the Fund's intention to continue to qualify as a regulated investment company
and to make the requisite distributions to its shareholders which will be
sufficient to relieve it from all or substantially all Federal income and excise
taxes.
16
THE ASIA TIGERS FUND, INC.
APRIL 30, 2005
Notes to Financial Statements (continued) (UNAUDITED)
Income and capital gain distributions are determined in accordance with federal
income tax regulations, which may differ from generally accepted accounting
principles ("GAAP").
At October 31, 2004, the Fund had a net capital loss carryover of $98,156,161,
which is available to offset future net realized gains on securities
transactions to the extent provided for in the Internal Revenue Code. Of the
aggregate capital losses, $82,941,572 will expire in the year 2006, $8,437,899
will expire in the year 2009, $3,353,570 will expire in 2010 and $3,423,120 will
expire in 2011. To the extent that capital gains are so offset, such gains will
not be distributed.
The tax character of dividends and distributions declared during the year ended
October 31, 2004 were as follows:
2004
Ordinary Income $602,747
--------
Total $602,747
========
Dividend and interest income from non-U.S. sources received by the Fund are
generally subject to non-U.S. withholding taxes. In addition, the Fund may be
subject to capital gains tax in certain countries in which it invests. The above
taxes may be reduced or eliminated under the terms of applicable U.S. income tax
treaties with some of these countries. The Fund accrues such taxes when the
related income is earned.
FOREIGN CURRENCY TRANSLATION. The books and records of the Fund are maintained
in U.S. dollars. Foreign currency amounts are translated into U.S. dollars on
the following basis:
(i) value of investment securities, assets and liabilities at the current
rates of exchange on the valuation date; and
(ii) purchases and sales of investment securities, income and expenses at
the relevant rates of exchange prevailing on the respective dates of
such transactions.
The Fund does not generally isolate the effect of fluctuations in foreign
currency rates from the effect of fluctuations in the market prices of equity
securities. The Fund reports certain realized gains and losses on foreign
currency related transactions as components of realized gains and losses for
financial reporting purposes, whereas such gains and losses are included in or
are a reduction of ordinary income for Federal income tax purposes.
DISTRIBUTION OF INCOME AND GAINS. The Fund intends to distribute annually to
shareholders substantially all of its net investment income, including foreign
currency gains, and to distribute annually any net realized capital gains in
excess of net realized capital losses (including any capital loss carryovers).
An additional distribution may be made to the extent necessary to avoid payment
of a 4% federal excise tax.
17
THE ASIA TIGERS FUND, INC.
APRIL 30, 2005
Notes to Financial Statements (continued) (UNAUDITED)
Distributions to shareholders are recorded on the ex-dividend date. The amount
of dividends and distributions from net investment income and net realized
capital gains are determined in accordance with federal income tax regulations,
which may differ from accounting principles generally accepted in the United
States of America. These book/tax differences are either considered temporary or
permanent in nature. To the extent these differences are permanent in nature,
such amounts are reclassified within the capital accounts based on their federal
tax-basis treatment; temporary differences do not require reclassification.
Dividends and distributions which exceed net investment income and net realized
capital gains for financial reporting purposes but not for tax purposes, are
reported as dividends in excess of net investment income or distributions in
excess of net realized capital gains. To the extent they exceed net investment
income and net realized capital gains for tax purposes, they are reported as
distributions of paid-in-capital.
NOTE B: MANAGEMENT, INVESTMENT ADVISORY, ADMINISTRATIVE SERVICES AND DIRECTORS
Advantage Advisers, Inc. ("Advantage"), a subsidiary of Oppenheimer Asset
Management Inc. ("OAM") and an affiliate of Oppenheimer & Co. Inc.
("Oppenheimer"), serves as the Fund's Investment Manager under the terms of a
management agreement dated June 5, 2003 (the "Management Agreement"). Pursuant
to the Management Agreement, the Investment Manager manages the Fund's
investment portfolio. For its services, the Investment Manager receives monthly
fees at an annual rate of 1.00% of the Fund's average weekly net assets. For the
six months ended April 30, 2005, these fees amounted to $418,482.
Oppenheimer, a registered investment advisor and an indirect wholly-owned
subsidiary of Oppenheimer Holdings Inc., serves as the Fund's administrator (the
"Administrator") pursuant to an administration agreement dated June 5, 2003. The
Administrator provides certain administrative services to the Fund. For its
services, the Administrator receives a monthly fee at an annual rate of 0.20% of
the value of the Fund's average weekly net assets. For the six months ended
April 30, 2005, these fees amounted to $83,260. Prior to June 5, 2003, the
Fund's administrator was CIBC World Markets Corp.
The Fund pays each of its directors who is not a director, officer or employee
of the Investment Manager, the Administrator or any affiliate thereof an annual
fee of $5,000 plus up to $700 for each Board of Directors meeting attended. In
addition, the Fund reimburses the independent directors for travel and
out-of-pocket expenses incurred in connection with Board of Directors meetings.
NOTE C: PORTFOLIO ACTIVITY
Purchases and sales of securities other than short-term obligations aggregated
$16,568,585 and $24,674,989, respectively, for the six months ended April 30,
2005.
18
THE ASIA TIGERS FUND, INC.
APRIL 30, 2005
Notes to Financial Statements (continued) (UNAUDITED)
NOTE D: QUARTERLY REPURCHASE OFFERS
In January 2002, the Board of Directors approved, subject to stockholder
approval, a fundamental policy whereby the Fund would adopt an "interval fund"
structure pursuant to Rule 23c-3 under the 1940 Act. Stockholders of the Fund
subsequently approved the policy at the Special Meeting of Stockholders held on
April 26, 2002. As an interval fund, the Fund will make quarterly repurchase
offers at net asset value (less a 2% repurchase fee) to all Fund stockholders.
The percentage of outstanding shares that the Fund can repurchase in each offer
will be established by the Fund's Board of Directors shortly before the
commencement of each quarterly offer, and will be between 5% and 25% of the
Fund's then outstanding shares.
During the six months ended April 30, 2005, the results of the two quarterly
repurchase offers were as follows:
------------------------------------
REPURCHASE REPURCHASE
OFFER #9 OFFER #10
- --------------------------------------------------------------------------------
Commencement Date December 23, 2004 March 30, 2005
- --------------------------------------------------------------------------------
Expiration Date January 14, 2005 April 15, 2005
- --------------------------------------------------------------------------------
Repurchase Offer Date January 21, 2005 April 29, 2005
- --------------------------------------------------------------------------------
% of Issued and Outstanding Shares
of Common Stock 5% 5%
- --------------------------------------------------------------------------------
Shares Validly Tendered 2,067,018.2378 1,998,764.2378
- --------------------------------------------------------------------------------
Final Pro-ration Odd Lot Shares 14,617.0000 16,780.0000
- --------------------------------------------------------------------------------
Final Pro-ration Non-Odd
Lot Shares 2,052,401.2378 1,981,984.2378
- --------------------------------------------------------------------------------
% of Non-Odd Lot Shares Accepted 16.37382% 15.96170%
- --------------------------------------------------------------------------------
Shares Accepted for Tender 350,672 333,138
- --------------------------------------------------------------------------------
Net Asset Value as of Repurchase
Offer Date ($) 12.23 12.42
- --------------------------------------------------------------------------------
Repurchase Fee per Share ($) 0.2446 0.2484
- --------------------------------------------------------------------------------
Repurchase Offer Price ($) 11.9854 12.1716
- --------------------------------------------------------------------------------
Repurchase Fee ($) 85,775 82,752
- --------------------------------------------------------------------------------
Expenses ($) 107,136 25,971
- --------------------------------------------------------------------------------
Total Cost ($) 4,310,080 4,080,799
- --------------------------------------------------------------------------------
19
THE ASIA TIGERS FUND, INC.
APRIL 30, 2005
Notes to Financial Statements (continued) (UNAUDITED)
During the year ended October 31, 2004, the results of the four quarterly
repurchase offers were as follows:
----------------------------------------------------------------------
REPURCHASE REPURCHASE REPURCHASE REPURCHASE
OFFER #5 OFFER #6 OFFER #7 OFFER #8
- ----------------------------------------------------------------------------------------------------------
Commencement Date December 26, 2003 March 26, 2004 June 25, 2004 September 24, 2004
- ----------------------------------------------------------------------------------------------------------
Expiration Date January 16, 2004 April 16, 2004 July 16, 2004 October 15, 2004
- ----------------------------------------------------------------------------------------------------------
Repurchase Offer Date January 23, 2004 April 23, 2004 July 23, 2004 October 22, 2004
- ----------------------------------------------------------------------------------------------------------
% of Issued and Outstanding Shares
of Common Stock 5% 5% 5% 5%
- ----------------------------------------------------------------------------------------------------------
Shares Validly Tendered 1,459,130.6002 2,609,905.2003 2,552,812.2062 2,478,511.6639
- ----------------------------------------------------------------------------------------------------------
Final Pro-ration Odd Lot Shares 10,744.1907 47,448.4154 140,434.0191 31,206.4261
- ----------------------------------------------------------------------------------------------------------
Final Pro-ration Non-Odd
Lot Shares 419,789.0000 361,558.2056 248,122.2819 337,922.0000
- ----------------------------------------------------------------------------------------------------------
% of Non-Odd Lot Shares Accepted 28.96825% 13.93511% 10.28540% 13.80784%
- ----------------------------------------------------------------------------------------------------------
Shares Accepted for Tender 430,533 409,007 388,556 369,128
- ----------------------------------------------------------------------------------------------------------
Net Asset Value as of Repurchase
Offer Date ($) 11.86 12.03 10.05 10.87
- ----------------------------------------------------------------------------------------------------------
Repurchase Fee per Share ($) 0.2372 0.2406 0.2010 0.2174
- ----------------------------------------------------------------------------------------------------------
Repurchase Offer Price ($) 11.6228 11.7894 9.8490 10.6526
- ----------------------------------------------------------------------------------------------------------
Repurchase Fee ($) 102,123 98,407 78,100 80,249
- ----------------------------------------------------------------------------------------------------------
Expenses ($) 93,229 106,490 59,045 12,279
- ----------------------------------------------------------------------------------------------------------
Total Cost ($) 5,097,231 4,928,432 3,885,936 3,944,456
- ----------------------------------------------------------------------------------------------------------
20
THE ASIA TIGERS FUND, INC.
APRIL 30, 2005
Notes to Financial Statements (concluded) (UNAUDITED)
NOTE E: OTHER
At April 30, 2005, substantially all of the Fund's assets were invested in Asian
securities. The Asian securities markets are substantially smaller, less
developed, less liquid, and more volatile than the major securities markets in
the United States. Consequently, acquisitions and dispositions of Asian
securities involve special risks and considerations not present with respect to
U.S. securities.
Securities denominated in currencies other than U.S. dollars are subject to
changes in value due to fluctuations in foreign exchange. Foreign security and
currency transactions involve certain considerations and risks not typically
associated with those of domestic origin as a result of, among other factors,
the level of governmental supervision and regulation of foreign securities
markets and the possibilities of political or economic instability, the fact
that foreign securities markets may be smaller and less developed, and the fact
that securities, tax and corporate laws may have only recently developed or are
in developing stages, and laws may not exist to cover all contingencies or to
protect investors adequately.
In the normal course of business, the Fund may enter into contracts that contain
a variety of representations and warranties and which may provide for general
indemnifications. The Fund's maximum exposure under these arrangements is
unknown, as this would involve future claims that may be made against the Fund
that have not yet occurred. However, based on experience, management expects the
risk of loss to be remote.
The Fund's CEO has submitted to the NYSE the required annual certification and,
the Fund also has included the certifications of the Fund's CEO and CFO required
by Section 302 of the Sarbanes-Oxley Act in the Fund's Form N-CSR filed with the
SEC, for the period of this report.
21
THE ASIA TIGERS FUND, INC.
Results of Annual Meeting of Stockholders
ANNUAL MEETING
The Fund held its Annual Meeting of Stockholders on February 28, 2005. At the
meeting, stockholders elected the nominee proposed for election to the Fund's
Board of Directors. The following table provides information concerning the
matters voted on at the meeting:
I. ELECTION OF DIRECTORS
TOTAL VOTING
VOTES NON-VOTING AND NON-VOTING
NOMINEE VOTES FOR WITHHELD SHARES SHARES
-------------- --------- -------- ---------- --------------
Leslie H. Gelb 4,766,303 99,405 0 4,865,708
Luis F. Rubio 4,767,583 98,125 0 4,865,708
At April 30, 2005, in addition to Leslie H. Gelb and Luis F. Rubio, the other
directors of the Fund were as follows:
Lawrence K. Becker
Bryan McKigney
Jeswald W. Salacuse
A description of the policies and procedures that the Fund uses to determine how
to vote proxies relating to portfolio securities is available without charge
upon request by calling the Fund's toll free number at 1-800-421-4777 and at the
Securities and Exchange Commission website at http://www.sec.gov.
Information regarding how the Fund voted proxies relating to portfolio
securities during the most recent twelve month period ended June 30, 2005 is
available after August 30, 2005, without charge, upon request, by calling the
Fund's toll free number at 1-800-421-4777 and at the Securities and Exchange
Commission website at http://www.sec.gov.
22
THE ASIA TIGERS FUND, INC.
Dividends and Distributions
DIVIDEND REINVESTMENT AND CASH PURCHASE PLAN
The Fund intends to distribute annually to shareholders substantially all of its
net investment income, and to distribute any net realized capital gains at least
annually. Net investment income for this purpose is income other than net
realized long- and short-term capital gains net of expenses.
Pursuant to the Dividend Reinvestment and Cash Purchase Plan (the "Plan"),
shareholders whose shares of Common Stock are registered in their own names will
be deemed to have elected to have all distributions automatically reinvested by
the Plan Agent in the Fund shares pursuant to the Plan, unless such shareholders
elect to receive distributions in cash. Shareholders who elect to receive
distributions in cash will receive all distributions in cash paid by check in
dollars mailed directly to the shareholder by PNC Bank, National Association, as
dividend paying agent. In the case of shareholders such as banks, brokers or
nominees that hold shares for others who are beneficial owners, the Plan Agent
will administer the Plan on the basis of the number of shares certified from
time to time by the shareholders as representing the total amount registered in
such shareholders' names and held for the account of beneficial owners that have
not elected to receive distributions in cash. Investors that own shares
registered in the name of a bank, broker or other nominee should consult with
such nominee as to participation in the Plan through such nominee, and may be
required to have their shares registered in their own names in order to
participate in the Plan.
The Plan Agent serves as agent for the shareholders in administering the Plan.
If the directors of the Fund declare an income dividend or a capital gains
distribution payable either in the Fund's Common Stock or in cash,
nonparticipants in the Plan will receive cash and participants in the Plan will
receive Common Stock, to be issued by the Fund or purchased by the Plan Agent in
the open market, as provided below. If the market price per share on the
valuation date equals or exceeds net asset value per share on that date, the
Fund will issue new shares to participants at net asset value; provided,
however, that if the net asset value is less than 95% of the market price on the
valuation date, then such shares will be issued at 95% of the market price. The
valuation date will be the dividend or distribution payment date or, if that
date is not a New York Stock Exchange trading day, the next preceding trading
day. If net asset value exceeds the market price of Fund shares at such time, or
if the Fund should declare an income dividend or capital gains distribution
payable only in cash, the Plan Agent will, as agent for the participants, buy
Fund shares in the open market, on the New York Stock Exchange or elsewhere, for
the participants' accounts on, or shortly after, the payment date. If, before
the Plan Agent has completed its purchases, the market price exceeds the net
asset value of a Fund share, the average per share purchase price paid by the
Plan Agent may exceed the net asset value of the Fund's shares, resulting in the
acquisition of fewer shares than if the distribution had been paid in shares
issued by the Fund on the dividend payment date. Because of the foregoing
difficulty with respect to open-market purchases, the Plan provides that if the
Plan Agent is unable to invest the full dividend amount in open-market purchases
during the purchase period or if the market discount shifts to a market premium
during the purchase period, the Plan Agent will cease making open-market
23
THE ASIA TIGERS FUND, INC.
Dividends and Distributions (continued)
purchases and will receive the uninvested portion of the dividend amount in
newly issued shares at the close of business on the last purchase date.
Participants have the option of making additional cash payments to the Plan
Agent, annually, in any amount from $100 to $3,000, for investment in the Fund's
Common Stock. The Plan Agent will use all such funds received from participants
to purchase Fund shares in the open market on or about February 15.
Any voluntary cash payment received more than 30 days prior to this date will be
returned by the Plan Agent, and interest will not be paid on any uninvested cash
payment. To avoid unnecessary cash accumulations, and also to allow ample time
for receipt and processing by the Plan Agent, it is suggested that participants
send in voluntary cash payments to be received by the Plan Agent approximately
ten days before an applicable purchase date specified above. A participant may
withdraw a voluntary cash payment by written notice, if the notice is received
by the Plan Agent not less than 48 hours before such payment is to be invested.
The Plan Agent maintains all shareholder accounts in the Plan and furnishes
written confirmations of all transactions in an account, including information
needed by shareholders for personal and tax records. Shares in the account of
each Plan participant will be held by the Plan Agent in the name of the
participant, and each shareholder's proxy will include those shares purchased
pursuant to the Plan.
There is no charge to participants for reinvesting dividends or capital gains
distributions or voluntary cash payments. The Plan Agent's fees for the
reinvestment of dividends and capital gains distributions and voluntary cash
payments will be paid by the Fund. There will be no brokerage charges with
respect to shares issued directly by the Fund as a result of dividends or
capital gains distributions payable either in stock or in cash. However, each
participant will pay a pro rata share of brokerage commissions incurred with
respect to the Plan Agent's open market purchases in connection with the
reinvestment of dividends and capital gains distributions and voluntary cash
payments made by the participant. Brokerage charges for purchasing small amounts
of stock for individual accounts through the Plan are expected to be less than
the usual brokerage charges for such transactions, because the Plan Agent will
be purchasing stock for all participants in blocks and prorating the lower
commission thus attainable.
The receipt of dividends and distributions under the Plan will not relieve
participants of any income tax that may be payable on such dividends or
distributions.
Experience under the Plan may indicate that changes in the Plan are desirable.
Accordingly, the Fund and the Plan Agent reserve the right to terminate the Plan
as applied to any voluntary cash payments made and any dividend or distribution
paid subsequent to notice of the termination sent to members of the Plan at
least 30 days before the record date for such dividend or distribution. The Plan
also may be amended by the Fund or the Plan Agent, but (except when necessary or
appropriate to comply with
24
THE ASIA TIGERS FUND, INC.
Dividends and Distributions (concluded)
applicable law, rules or policies of a regulatory authority) only by at least 30
days' written notice to participants in the Plan. All correspondence concerning
the Plan should be directed to the Plan Agent at P.O. Box 43027, Westborough,
Massachusetts, 43027.
25
PRIVACY POLICY OF
ADVANTAGE ADVISERS, INC.
THE ASIA TIGERS FUND, INC.
THE INDIA FUND, INC.
- --------------------------------------------------------------------------------
YOUR PRIVACY IS PROTECTED
An important part of our commitment to you is our respect for your right to
privacy. Protecting all the information we are either required to gather or
which accumulates in the course of doing business with you is a cornerstone of
our relationship with you. While the range of products and services we offer
continues to expand, and the technology we use continues to change, our
commitment to maintaining standards and procedures with respect to security
remains constant.
COLLECTION OF INFORMATION
The primary reason that we collect and maintain information is to more
effectively administer our customer relationship with you. It allows us to
identify, improve and develop products and services that we believe could be of
benefit. It also permits us to provide efficient, accurate and responsive
service, to help protect you from unauthorized use of your information and to
comply with regulatory and other legal requirements. These include those related
to institutional risk control and the resolution of disputes or inquiries.
Various sources are used to collect information about you, including (i)
information you provide to us at the time you establish a relationship, (ii)
information provided in applications, forms or instruction letters completed by
you, (iii) information about your transactions with us or our affiliated
companies, and/or (iv) information we receive through an outside source, such as
a bank or credit bureau. In order to maintain the integrity of client
information, we have procedures in place to update such information, as well as
to delete it when appropriate. We encourage you to communicate such changes
whenever necessary.
DISCLOSURE OF INFORMATION
We do not disclose any nonpublic, personal information (such as your name,
address or tax identification number) about our clients or former clients to
anyone, except as permitted or required by law. We maintain physical, electronic
and procedural safeguards to protect such information, and limit access to such
information to those employees who require it in order to provide products or
services to you.
The law permits us to share client information with companies that are
affiliated with us which provide financial, credit, insurance, trust, legal,
accounting and administrative services to us or our clients. This allows us to
enhance our relationship with you by providing a broader range of products to
better meet your needs and to protect the assets you may hold with us by
preserving the safety and soundness of our firm.
26
PRIVACY POLICY OF
ADVANTAGE ADVISERS, INC.
THE ASIA TIGERS FUND, INC.
THE INDIA FUND, INC.
- --------------------------------------------------------------------------------
Finally, we are also permitted to disclose nonpublic, personal information to
unaffiliated outside parties who assist us with processing, marketing or
servicing a financial product, transaction or service requested by you,
administering benefits or claims relating to such a transaction, product or
service, and/or providing confirmations, statements, valuations or other records
or information produced on our behalf.
It may be necessary, under anti-money laundering or other laws, to disclose
information about you in order to accept your subscription. Information about
you may also be released if you so direct, or if we or an affiliate are
compelled to do so by law, or in connection with any government or
self-regulatory organization request or investigation.
We are committed to upholding this Privacy Policy. We will notify you on an
annual basis of our policies and practices in this regard and at any time that
there is a material change that would require your consent.
May 2003
27
THE ASIA TIGERS FUND, INC.
INVESTMENT MANAGER:
Advantage Advisers, Inc., a subsidiary of
Oppenheimer Asset Management Inc.
ADMINISTRATOR:
Oppenheimer & Co. Inc.
SUB-ADMINISTRATOR:
PFPC Inc.
TRANSFER AGENT:
PFPC Inc.
CUSTODIAN:
State Street Corporation
The Fund has adopted the Investment Manager's proxy voting policies and
procedures to govern the voting of proxies relating to its voting securities.
You may obtain a copy of these proxy voting procedures, without charge, by
calling (800) 421-4777 and by visiting the Securities and Exchange Commission's
website at www.sec.gov.
The Fund files its complete schedule of portfolio holdings wih the Securities
and Exchange Commission for the first and third quarters of its fiscal year on
Form N-Q. You may obtain a copy of these filings by visiting the Securities and
Exchange Commission's website at www.sec.gov or its Public Reference Room in
Washington, D.C. Information on the operation of the Public Reference Room may
be obtained by calling (800) SEC-0330.
This report is sent to shareholders of the Fund for their information. It is not
a Prospectus, circular or representation intended for use in the purchase or
sale of shares of the Fund or of any securities mentioned in this report.
ITEM 2. CODE OF ETHICS.
Not applicable.
ITEM 3. AUDIT COMMITTEE FINANCIAL EXPERT.
Not applicable.
ITEM 4. PRINCIPAL ACCOUNTANT FEES AND SERVICES.
Not applicable.
ITEM 5. AUDIT COMMITTEE OF LISTED REGISTRANTS.
Not applicable.
ITEM 6. SCHEDULE OF INVESTMENTS.
Schedule of Investments in securities of unaffiliated issuers as of the close of
the reporting period is included as part of the report to shareholders filed
under Item 1 of this form.
ITEM 7. DISCLOSURE OF PROXY VOTING POLICIES AND PROCEDURES FOR CLOSED-END
MANAGEMENT INVESTMENT COMPANIES.
Not applicable.
ITEM 8. PORTFOLIO MANAGERS OF CLOSED-END MANAGEMENT INVESTMENT COMPANIES.
Not applicable.
ITEM 9. PURCHASES OF EQUITY SECURITIES BY CLOSED-END MANAGEMENT INVESTMENT
COMPANY AND AFFILIATED PURCHASERS.
REGISTRANT PURCHASES OF EQUITY SECURITIES
- ---------------------------------------------------------------------------------------------------------------------------
(A) TOTAL
NUMBER OF (C) TOTAL NUMBER OF SHARES (OR (D) MAXIMUM NUMBER (OR APPROXIMATE
SHARES (OR (B) AVERAGE UNITS) PURCHASED AS PART OF DOLLAR VALUE) OF SHARES (OR UNITS)
UNITS) PRICE PAID PER PUBLICLY ANNOUNCED PLANS OR THAT MAY YET BE PURCHASED UNDER THE
PERIOD PURCHASED SHARE (OR UNIT) PROGRAMS PLANS OR PROGRAMS
- ---------------------------------------------------------------------------------------------------------------------------
11/1/04 to 11/30/04
None None None None
- ---------------------------------------------------------------------------------------------------------------------------
12/1/04 to 12/31/04
None None None None
- ---------------------------------------------------------------------------------------------------------------------------
1/1/05 to 1/31/05
350,672.0283 $11.9854 350,672.0283 (1) None
- ---------------------------------------------------------------------------------------------------------------------------
2/1/05 to 2/28/05
None None None None
- ---------------------------------------------------------------------------------------------------------------------------
3/1/05 to 3/31/05
None None None None
- ---------------------------------------------------------------------------------------------------------------------------
4/1/05 to 4/30/05
333,138.4283 $12.1716 333,138.4283 (2) None
- ---------------------------------------------------------------------------------------------------------------------------
Total 683,810.4566 683,810.4566
- ---------------------------------------------------------------------------------------------------------------------------
(1) These shares were repurchased in connection with the Fund's regular,
quarterly repurchase offer announced on December 23, 2004 that expired on
January 14, 2005. In connection with this repurchase offer, the Fund offered to
repurchase up to 350,672.0283 shares of its common stock, an amount equal to 5%
of its outstanding shares of common stock, for cash at a price approximately
equal to the Fund's net asset value as of January 21, 2005.
(2) These shares were repurchased in connection with the Fund's regular,
quarterly repurchase offer announced on March 24, 2005 that expired on April 15,
2005. In connection with this repurchase offer, the Fund offered to repurchase
up to 333,138.4283 shares of its common stock, an amount equal to 5% of its
outstanding shares of common stock, for cash at a price approximately equal to
the Fund's net asset value as of April 29, 2005.
ITEM 10. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS.
There have been no material changes to the procedures by which the shareholders
may recommend nominees to the registrant's board of directors, where those
changes were implemented after the registrant last provided disclosure in
response to the requirements of Item 7(d)(2)(ii)(G) of Schedule 14A (17 CFR
240.14a-101), or this Item.
ITEM 11. CONTROLS AND PROCEDURES.
(a) The registrant's principal executive and principal financial officers,
or persons performing similar functions, have concluded that the
registrant's disclosure controls and procedures (as defined in Rule
30a-3(c) under the Investment Company Act of 1940, as amended (the
"1940 Act") (17 CFR 270.30a-3(c))) are effective, as of a date within
90 days of the filing date of the report that includes the disclosure
required by this paragraph, based on their evaluation of these controls
and procedures required by Rule 30a-3(b) under the 1940 Act (17 CFR
270.30a-3(b)) and Rules 13a-15(b) or 15d-15(b) under the Securities
Exchange Act of 1934, as amended (17 CFR 240.13a-15(b) or
240.15d-15(b)).
(b) There were no changes in the registrant's internal control over
financial reporting (as defined in Rule 30a-3(d) under the 1940 Act (17
CFR 270.30a-3(d)) that occurred during the registrant's second fiscal
quarter of the period covered by this report that has materially
affected, or is reasonably likely to materially affect, the
registrant's internal control over financial reporting.
ITEM 12. EXHIBITS.
(a)(1) Not applicable.
(a)(2) Certifications pursuant to Rule 30a-2(a) under the 1940 Act and
Section 302 of the Sarbanes-Oxley Act of 2002 are attached hereto.
(a)(3) Not applicable.
(b) Certifications pursuant to Rule 30a-2(b) under the 1940 Act and
Section 906 of the Sarbanes-Oxley Act of 2002 are attached hereto.
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934 and the
Investment Company Act of 1940, the registrant has duly caused this report to be
signed on its behalf by the undersigned, thereunto duly authorized.
(registrant) The Asia Tigers Fund, Inc.
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By (Signature and Title)* /s/ Bryan McKigney
-------------------------------------------------------
Bryan McKigney, Director, President and Chairman
(principal executive officer)
Date June 27, 2005
----------------------------------------------------------------------------
Pursuant to the requirements of the Securities Exchange Act of 1934 and the
Investment Company Act of 1940, this report has been signed below by the
following persons on behalf of the registrant and in the capacities and on the
dates indicated.
By (Signature and Title)* /s/ Bryan McKigney
-------------------------------------------------------
Bryan McKigney, Director, President and Chairman
(principal executive officer)
Date June 27, 2005
----------------------------------------------------------------------------
By (Signature and Title)* /s/ Alan Kaye
-------------------------------------------------------
Alan Kaye, Treasurer
(principal financial officer)
Date June 27, 2005
----------------------------------------------------------------------------
* Print the name and title of each signing officer under his or her signature.