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 811-04665
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Commonwealth International Series Trust
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(Exact name of registrant as specified in charter)

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

InCap Service Company 630 Fitzwatertown Road "A" Willow Grove, PA 19090-1904
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(Name and address of agent for service)

Registrant's telephone number, including area code: 888-345-1898
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Date of fiscal year end: 10/31/2004
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Date of reporting period: 10/31/2004
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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 SHAREHOLDERS
The following is a copy of the annual report to shareholders for the
period ended October 31, 2004 pursuant to Rule 30e-1 under the
Investment Company Act of 1940.

The Commonwealth International
Series Trust
Australia/New Zealand Fund
Japan Fund
Global Fund
Real Estate Securities Fund

[LOGO]
COMMONWEALTH
INTERNATIONAL SERIES TRUST

ANNUAL REPORT

October 31, 2004

[LOGO]
COMMONWEALTH
INTERNATIONAL SERIES TRUST

630-A Fitzwatertown Road, Willow Grove, PA 19090 o 888.345.1898
Commonwealth Australia/New Zealand Fund (CNZLX)
Commonwealth Real Estate Securities Fund (CNREX)
Commonwealth Global Fund (CNGLX)
Commonwealth Japan Fund (CNJFX)
www.commonwealthfunds.com

Dear Shareholder:

We are pleased to present this annual report on the Commonwealth International
Series Trust for the twelve months ended October 31, 2004.

Report on the Commonwealth Australia & New Zealand Fund (CNZLX): The
Australia/New Zealand Fund's net asset value ("NAV") as of October 31, 2004 is
U.S. $16.39 per share compared to U.S. $14.44 per share on October 31, 2003, an
increase of 13.5%. On December 12, 2003 the Australia/New Zealand Fund made
distributions of U.S. $0.42 per share. The twelve month total return for the
Australia/New Zealand Fund is 16.7%, assuming reinvestment of gross
distributions. We believe the Fund's longer-term performance has continued to be
competitive relative to the asset classes invested in, which includes an
allocation to fixed income.

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Asset Allocation
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New Zealand -- Equities 31%
Short-Term Investments 30%
New Zealand -- Bonds 22%
Australia -- Equities 15%
Australia -- Bonds 2%
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* Short-Term Investments include foreign currency valued at the current
exchange rate. Percentages are based on total market value of investment
securities.

For the twelve month period ending October 31, 2004 the New Zealand Exchange 50
Free Float Total Return Index(1) increased 21.9% in New Zealand Dollar terms and
36.1% in U.S. dollar terms. The 10 Year New Zealand Government Bond, as measured
by the Bloomberg Fair Value New Zealand Government 10 Year Bond Index(2),
decreased 2.4% in New Zealand Dollar terms. The New Zealand Dollar appreciated
11.5% versus the U.S. Dollar over this same period. For the twelve month period
ending October 31, 2004 the Australian All Ordinaries Index(3) increased 21.6%
in Australian Dollar terms and 28.1% in U.S. Dollar terms. The Australian Dollar
continued to appreciate versus the U.S. Dollar on the heels of rising commodity
prices and strong growth in the Asia Pacific Region, with the Australian Dollar
5.6% higher versus the U.S. Dollar during this period.

COMMONWEALTH INTERNATIONAL SERIES TRUST

New Zealand's Real Gross Domestic Product (GDP) expanded 4.4% from a year
earlier in the 3rd quarter of 2004 following a 5.7% expansion in the previous
quarter. Real GDP growth will likely moderate in 2005, although higher
government spending ahead of the general election in September 2005 should
prevent a steeper slowdown. New Zealand's strong economic growth in recent years
has resulted in strong employment gains with the economy adding almost twice as
many jobs as economists expected in the third quarter of 2004, cutting the
unemployment rate to 3.8%, the lowest in more than 18 years. The Organization
for Economic Cooperation and Development (OECD), which uses standardized rates,
said New Zealand's unemployment rate is the second lowest of the 27 economies in
the OECD.

Looking forward, there is clear downside risk to the New Zealand economy should
global growth weaken to any substantial degree and/or commodity prices retreat
from their current high levels. While the real exchange rate in New Zealand has
been at a high level all year, the difference in this cycle is that New
Zealand's terms of trade are at their highest level in thirty years, while New
Zealand's trading partner GDP growth has been the strongest in ten years.
Meanwhile, exporters have had the protection of strong terms of trade and a
strong global economy. The key to the equity market outlook in New Zealand is
where the global and local environment are headed. Our forecast is for growth to
retreat from an above trend rate to about-trend or to a just-below trend rate.
Thus, our expectations for equity returns next year are modest.

Australia's domestic and foreign demand for goods and services has been strong
for the last year which in turn has supported rising equity prices. Australia's
GDP grew at 3% year over year in the third quarter of 2004 from the third
quarter of 2003, while the unemployment rate dropped from 5.9% in October of
2003 to 5.3% in October of 2004. The strong rise in Australia's terms of trade,
which has boosted national income in recent years, owes much to China's huge
appetite for natural resources. Equity valuations remain reasonable which still
argues the case of favoring equity over other asset classes; as reflected in the
Fund's asset allocation.

Report on the Commonwealth Global Fund: The Global Fund's NAV as of October 31,
2004 is U.S. $13.89 per share compared to U.S. $11.99 per share on October 31,
2003, an increase of 15.9%. The MSCI World Index(4) increased 13.8% in U.S.
Dollar terms for the twelve month period ending October 31, 2004. Over the
twelve month period ending October 31, 2004, the MSCI EAFE Index(5) outperformed
the MSCI World Index and the S&P 500 Index,(6) appreciating 19.4% versus 9.4%
for the S&P 500 and 13.8% for the World Index. We are pleased with the Global
Fund's performance.

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Country/Region Allocation*
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North America 45%
Europe 25%
Bonds, Pfd. Stock, & Short Term Investments (U.S.) 11%
Emerging Markets 10%
Developed Asia ex-Japan 5%
Japan 4%
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* Percentages are based on total market value of investment securities.

COMMONWEALTH INTERNATIONAL SERIES TRUST

On balance we believe that the global economy will run on a slower track next
year compared to the previous twelve months. Higher average interest rates and
continued high oil prices are likely to take a toll on the rate of economic
activity in the months ahead. However, we think that business expansion will
prove sustainable, but we also sense that growth may ease should oil prices
climb further. Our preference for broad diversification and income producing
equities with reasonable valuations remains very much intact.

The U.S. Dollar Index, an indicator of the general international value of the
U.S. Dollar based on the average exchange rates versus six major world
currencies, has declined 28% through the end of October 2004 from its all time
high in mid 2001. Management believes the main drivers of the U.S. Dollar
weakness include the expanding trade and budget deficits along with record low
interest rates. In addition, sustained foreign purchases of U.S. debt securities
have helped to keep interest rates low which in turn have helped to finance U.S.
consumers' spending binge. While a declining U.S. Dollar is beneficial for U.S.
exporters, a falling dollar may likely result in higher import price inflation
which in turn could foster higher inflation in the U.S. at a time when the
domestic savings rate remains near historic lows. Management believes that in
order to correct this structural imbalance, the U.S. will either need to reduce
deficit spending, increase economic growth through higher productivity, and/or
witness higher consumer consumption in the rest of the world in order to reduce
foreigners' high net savings rate.

Report on the Commonwealth Japan Fund: The Japan Fund's NAV on October 31, 2004
is U.S. $3.61 per share compared to U.S. $3.98 per share on October 31, 2003, a
decrease of 9.3%. The TOPIX, also known as the Tokyo Price Index,(7) increased
5.1% in Japanese Yen terms and 9.1% in U.S. Dollar terms over the last twelve
months. The Japanese Yen appreciated 3.9% versus the U.S. Dollar over the last
twelve months. We are disappointed in the Fund's shorter-term performance. This
underperformance may be in part explained by our strategy of investing more
heavily in large-cap stocks and in industrials and infrastructure related
companies, which have not performed as well as the broader market. The small
size of the Fund results in a higher expense ratio because of the fixed and
semi-fixed costs that have to be absorbed by a smaller asset base (see further
discussion under Expense ratios and how they impacted Fund performance) and Fund
share turnover higher than our other Funds experienced, relative to their size.

COMMONWEALTH INTERNATIONAL SERIES TRUST

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Sector Allocation*
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Investment Companies 20%
Consumer Discretionary 17%
Industrials 16%
Information Technology 14%
Financials 7%
Materials 7%
Consumer Staples 6%
Health Care 5%
Utilities 5%
Telecommunications Services 2%
Short-Term Investments 1%
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* Sector allocation is based on the Global Industry Classification System
(GICS), which is an enhanced industry classification standard, developed
by Standard & Poor's in collaboration with Morgan Stanley Capital
International (MSCI). Short-Term Investments include foreign currency
valued at the current exchange rate. Percentages are based on total market
value of investment securities.

After posting two consecutive quarters of above 3% annualized growth in the
fourth quarter of 2003 and the first quarter of 2004, GDP growth in the second
quarter of 2004 contracted 0.6% and rose only marginally in the third quarter by
0.2%. An earnings slowdown is expected for fiscal year 2005 due to the weakened
momentum of the macro-economy, a downturn in semiconductor business, a strong
yen, and higher oil prices.

Higher profitability by Japanese companies has made the expansion in Japan more
durable. While bankruptcies have reduced the number of unviable firms, labor
costs have been reduced dramatically, especially in manufacturing. Yet, despite
rising profits, firms remain cautious. Japan's mild deflation is likely to
continue beyond 2004. Some measures of core prices have shown a modest
improvement. However, economic slack remains, while deflationary expectations
remain deep-seated. The Bank of Japan has been more flexible, but has not acted
in a manner that might end these expectations rapidly.

Japan remains more reliant on external demand than is common for such a large
economy. External demand helped advance Japan's cyclical prospects in 2003-04.
Much of the expansion in Japan's exports reflected close trade relations with
rapidly growing Asian countries. Many Japanese companies are well positioned to
participate in China's growth through ventures in China. Increased offshore
production by Japanese companies also has given rise to increased trade. Over
the long run, the efficiency gains from this specialization of the production
process could help raise returns substantially above recent (depressed) norms,
fostering economic resilience.

COMMONWEALTH INTERNATIONAL SERIES TRUST

Report on the Commonwealth Real Estate Securities Fund: The Real Estate
Securities Fund's NAV as of October 31, 2004 is U.S. $10.54 per share compared
to U.S. $10.00 per share on January 5, 2004 (the Fund's inception date), an
increase of 5.4%. The Morgan Stanley REIT Index(8) increased 20.4% for the
period January 5, 2004 (the Fund's inception date) through October 31, 2004
versus an increase of 2.1% for the S&P 500 Index6. The Fund's under-performance
of the Morgan Stanley REIT Index was due in part to having a larger allocation
of cash and cash equivalents as the Fund began to build its core portfolio
during this period. As of October 31, 2004 about 87% was invested in core
holdings versus short-term investments of about 13%.

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Asset Allocation
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U.S. REITS 39%
International 19%
U.S. Investment Companies 15%
U.S. Other Real Estate 14%
Bonds, Pfd. Stock & Short-Term Investments 13%
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* Percentages are based on total market value of investment securities.

With the exception of April, a month seeing major declines in REIT stocks,
investors in REIT's have realized strong performance when compared to other
investment vehicles. In fact, many investors may not be aware that the industry
has realized five consecutive years of strong performance, posting a cumulative
total return of 134% since the beginning of 2000.

The strong selling points for REIT's are their lucrative dividends, which
typically account for two-thirds of their total return. The average annual
dividend payout remains high relative to companies in the S&P 500 Index. On
average, REIT dividends are 5.0% before taxes, compared to a pre-tax yield of
1.6% for companies in the S&P 500 Index. Over the last 12 years, the average
annual dividend growth rate of 6.0% outpaced the average rate of inflation of
approximately 2.5%.

As noted in our April 30, 2004 semi-annual report, the NAREIT Equity Index
declined 14.6% in April when investors overreacted to a stronger than expected
unemployment report which fueled speculation of upward interest rate movements.
While higher interest rates will trigger more competition from bonds, bank CD's
and other investments, we believe that the belief that there is a direct
negative correlation between REIT fundamentals and interest rates has proved
unfounded. In fact, over the course of the year, real estate stocks have
continued to provide above average yields amidst a rising interest rate
environment and have erased a majority of the losses seen in April.

Higher interest rates can produce offsetting benefits to real-estate companies.
Interest rates tend to rise in an improving economy, increasing the need for
office and retail space. At the same time, speculative development is cut off,
limiting supply and increasing prices. Another benefit is increased occupancy
rates, which produce additional income to offset higher operating costs.

COMMONWEALTH INTERNATIONAL SERIES TRUST

We founded the Fund to provide investors with exposure to the real estate
sector, not just REIT's, which is why we invest in securities of Real Estate
Industry Companies (i.e., those whose fortunes are impacted by the real estate
market which may include REIT's, real estate development companies, real estate
management companies, building supply companies, timber companies and other
publicly-traded companies involved in real estate related activities and
industries). We also look at global opportunities, not just U.S. companies.

We also thought owners of our Fund would like to know just how a REIT common
stock may differ from other equity securities. REIT's are a creature of federal
tax law, established in 1960 to allow the earnings to be taxed only once at the
shareholder level. To enjoy this benefit, a REIT must distribute at least 90% of
its taxable income (not Financial GAAP income) each year. If all taxable income
is distributed, then double taxation is eliminated. This is one reason REIT's
tend to pay higher dividends than the stock market as a whole. The REIT must
also base its activities on long term real estate related activities as opposed
to short term trading (more information on REIT's may be obtained at
www.nareit.com).

Who is the adviser?

The Funds' investment adviser is FCA Corp. FCA is a fee-based financial planning
and investment counseling firm located at 5847 San Felipe, Suite 850, Houston,
Texas 77057. FCA and its predecessors have been in business since 1975.

Why do our Funds include shares of foreign companies?

We believe a portfolio containing foreign securities offers an investor better
diversification and less correlation versus a solely U.S equity portfolio. In
general, we think that investors should look at international investing not only
for diversification, but because there really is no reason for investors to
limit themselves to the U.S. stock market. A well diversified investment
portfolio includes an allocation to international as well as domestic markets
because investing outside the U.S. provides the traditional benefits of
diversification--the potential to diminish risk and achieve more consistent
long-term performance. It also offers exposure to many of the world's leading
companies and fastest growing economies. What are ADRs and how do we use them?

Depositary Receipts, also known as ADRs, are U.S. publicly traded equities
backed by certificates that represent a foreign company's shares. Depositary
Receipts are created when a broker purchases the company's shares on the home
market and delivers them to the depositary's custodian bank, which then
instructs the depositary bank to issue Depositary Receipts. Depositary Receipts
may trade freely, just like any other security, either on an exchange or in the
over-the-counter market. (For more information on ADRs visit the Bank of New
York's website, www.adrbny.com)

Because Depositary Receipts (ADRs) trade on the U.S. exchanges, the Funds may
purchase an ADR, as opposed to the ordinary shares, thus avoiding additional
foreign custodial expenses. In addition, ADRs traded in the U.S. are denominated
in U.S. Dollars, thus eliminating the need to convert U.S. Dollars into foreign
currency. When feasible and given proper liquidity in the security, the Funds
will generally purchase ADRs instead of foreign shares. Although ADRs are U.S.
denominated securities, the value of the underlying security (ordinary shares),
as well as fluctuations in foreign currency rates, will have a material effect
on the value of the ADR. The price of the ADR may be at a premium or discount to
the underlying security it represents. Also, there are not ADRs available for
most foreign equities.

COMMONWEALTH INTERNATIONAL SERIES TRUST

Our Funds' Portfolio Turnover

Higher levels of portfolio purchase and sale activity by a Fund result in higher
transaction costs and may also result in more realized capital gains or losses,
the impact of which is borne by the Fund's shareholders. Each Fund generally
invests in most securities with the view to hold them long-term. While
constantly monitored, the portfolio's securities are evaluated on their
long-term prospects and, depending upon the market, economic, and political
environment, the Fund may experience higher or lower turnover ratios in certain
years as the portfolio is rebalanced to take advantage of long-term
opportunities.

Fund Share Turnover & How It May Impact Fund Performance

Share turnover represents the purchase and sale of the shares of the
Commonwealth International Series Trust Funds by Fund Shareholders. Share
turnover in the Australia/New Zealand Fund and the Japan Fund are relatively
high compared to the size of these Funds because some investors, trading through
brokerage firms, move in and out of the Funds frequently. Frequent Fund share
turnover by certain shareholders may result in higher portfolio turnover and
costs which are borne by all shareholders, may impact the amount of Fund assets
maintained in short-term investments, the amount of Fund borrowings and may
adversely impact Fund investment performance. The Commonwealth International
Series Trust Board of Trustees has been advised of this and continues to closely
monitor the situation. In this regard, the Funds' Advisor and InCap Service
Company have been directed to monitor and report to the Board the extent to
which such trading occurs. The following are some of the steps that have been
taken: the Funds' use of American Depositary Receipts (ADR's) and other U.S.
priced securities; the use of in-the-money equity call options; the
establishment of lines of credit to lessen the need, or allow additional time,
to liquidate longer term positions to cover redemptions that exceed the cash
position of the Funds; limitations on the distribution of real time portfolio
holdings information or other information of the type sought by short-term
traders. As noted in our prospectus under Frequent Transactions: "The Funds are
not designed for frequent trading and certain purchases or exchange requests may
be difficult to implement in times of drastic market changes. The Funds reserve
the right to refuse or limit additional purchase and exchange transactions by
any investor who makes frequent purchases, redemptions or exchanges that the
Adviser believes might harm the Fund. The Funds may deem that more than one
transaction per month is excessive. The Fund also reserves the right to limit,
impose charges upon, terminate or otherwise modify the redemption or exchange
privilege by sending written notice to shareholders."

Expense ratios and how they impact Fund performance.

The operating expense ratio of the Funds investing overseas can be expected to
be higher than that of an investment company investing exclusively in securities
of United States issuers since the expenses to the Funds (such as custodial,
currency exchange, valuation and communications costs) are usually higher.

As with every mutual fund, size has an impact on the expense ratio. Typically,
larger funds can have smaller expense ratios as there is more of an opportunity
to spread out among a greater number of shareholders the fixed and semi-fixed
costs necessary to operate a mutual fund. These expenses are allocated on a
daily basis among all shareholders. This can be evidenced by the Commonwealth's
own Australia/New Zealand Fund which went from assets of $4.534 million and an
expense ratio of 5.74% on 10/31/01 to assets of $43.328 million and an expense
ratio of 2.09% on 10/31/04. The Japan Fund, with $7.87 million in assets, on the
other hand has not been able to reach as high of an asset level and therefore it
has a higher expense ratio (3.09%).

COMMONWEALTH INTERNATIONAL SERIES TRUST

Administrative Fee Arrangements

Each Fund pays FCA Corp., as the Advisor, 0.75% per annum of its total net asset
value, excluding the asset value of one Fund in another Fund of the complex.
InCap Service Company ("InCap"), the Administrator, supervises all aspects of
the Funds' operations other than the management of its investments and is paid
by each Fund for those services. InCap is not related to the Advisor.

Each Fund bears the cost of its accounting services, performed by InCap, which
includes maintaining their financial books and records and calculating their
daily net asset value. Each Fund also pays transfer agency fees, custodial fees,
legal and auditing fees, the costs of reports to stockholders and the Securities
and Exchange Commission, fees under the Service and Distribution Plan, Directors
Fees and all other ordinary expenses not specifically borne by the
Administrator. Details of Fund turnover and expenses are included with the
accompanying financial statements.

In Closing: We thank you for your support of the Commonwealth International
Series Trust and your continued interest. We truly value our investors and if
you have questions please feel free to contact us.

/s/ Robert W. Scharar /s/ Wesley R. Yuhnke
- --------------------------------- ---------------------------------
Robert W. Scharar Wesley Yuhnke
President and Portfolio Manager Assistant Portfolio Manager
Commonwealth International Series Commonwealth International Series

This report is intended for the fund's shareholders. It may not be distributed
to prospective investors unless it is preceded or accompanied by the current
fund prospectus which may be obtained at www.commonwealth-funds.com or from the
Funds' Distributor or your broker.

COMMONWEALTH INTERNATIONAL SERIES TRUST

(1) The New Zealand Exchange Limited 50 Free Float Total Return Index is a
modified market capitalization weighted index. The index consists of the
top 50 companies by free float adjusted market capitalization that is
listed on the New Zealand Exchange Limited.

(2) Bloomberg Fair Value New Zealand Government 10 Year Bond Index: Fair
market value indices are derived from data points on Bloomberg's
option-free Fair Market Curves. The yield at each maturity point
represents the composite yield of securities around that maturity.

(3) The Australian All Ordinaries Index is a cap-weighted index. The index is
made up of the largest 500 companies as measured by market cap that are
listed on the Australian Stock Exchange. The index was developed with a
base value of 500 as of 1979.

(4) The MSCI World Index is a free float-adjusted market capitalization index
that is designed to measure global developed market equity performance. As
of April 2002 the MSCI World Index consisted of the following 23 developed
market country indices: Australia, Austria, Belgium, Canada, Denmark,
Finland, France, Germany, Greece, Hong Kong, Ireland, Italy, Japan,
Netherlands, New Zealand, Norway, Portugal, Singapore, Spain, Sweden,
Switzerland, the United Kingdom and the United States.

(5) The MSCI EAFE Index is a capitalization weighted index that monitors the
performance of stocks from Europe, Australiasia, and the Far East.

(6) The Standard & Poor's 500 Index is a capitalization-weighted index of 500
stocks. The index is designed to measure performance of the broad domestic
economy through changes in the aggregate market value of the 500 stocks
representing all major industries. The index was developed with a base
level of 10 for the 1941-43 base period.

(7) The TOPIX, also known as the Tokyo Price Index, is a
capitalization-weighted index of all the companies listed on the First
Section of the Tokyo Stock Exchange. The index is supplemented by the
sub-indices of the 33 industry sectors and developed with a base index
value of 100 as of January 4, 1968. The index calculation excludes
temporary issues and preferred stocks.

(8) The Morgan Stanley REIT Index is a total-return index comprising of the
most actively traded real estate investment trusts and is designed to be a
measure of real estate equity performance. The index was developed with a
base value of 200 as of December 31, 1994.

COMMONWEALTH INTERNATIONAL SERIES TRUST
INFORMATION ABOUT YOUR FUND'S EXPENSES

As a shareholder of the Fund, you incur ongoing costs, including management
fees, distribution and service (12-B1) fees; and other Fund expenses. The
example below is intended to help you understand your ongoing costs (in dollars)
of investing in the Fund and to compare these costs with the ongoing costs of
investing in other mutual funds.

The table below illustrates an example investment of $1,000 at the beginning of
the period (4/30/04) and held for the entire period of 4/30/04 - 10/31/04.
Please note however that this table is unaudited. This example is intended to
help you understand your ongoing costs (in dollars) of investing in the Fund and
to compare these costs with the ongoing costs of investing in other mutual
funds.

Actual Expenses

The first section of the table provides information about actual account values
and actual expenses (relating to the example $1,000 investment made on 4/30/04).
You may use the information in this row, together with the amount you invested,
to estimate the expenses that you paid over the period. Simply divide your
account value by $1,000 (for example, an $8,600 account value divided by $1,000
= 8.6), then multiply the result by the number in the first row under the
heading entitled "Expenses Paid During Period" to estimate the expenses you paid
on your account during this period.

Hypothetical Example for Comparison Purposes

The second section of the table provides information about the hypothetical
account values and hypothetical expenses based on the Fund's actual expense
ratio and an assumed rate of return of 5% per year before expenses, which is not
the Fund's actual return. The hypothetical account values and expenses may not
be used to estimate the actual ending account balance or expenses you paid for
the period. You may use this information to compare the ongoing costs of
investing in the Fund and other funds. To do so, compare this 5% hypothetical
example with the 5% hypothetical examples that appear in the shareholder reports
of the other funds.

Please note that the expenses shown in the table are meant to highlight your
ongoing costs only and do not reflect any transactional costs, such as sales
charges (loads), redemption fees, or exchange fees. Therefore, the second
section of the table is useful in comparing ongoing costs only, and will not
help you determine the relative total costs of owning different funds. In
addition, if these transactional costs were included, your costs would have been
higher. For more information on transactional costs, please refer to the Funds'
prospectus.

COMMONWEALTH INTERNATIONAL SERIES TRUST
INFORMATION ABOUT YOUR FUND'S EXPENSES

Expenses and Value of a $1,000 Investment for the six months ended October 31,
2004

Beginning Ending
Account Value Account Value Expenses Paid
Actual Fund Return (in parentheses) 04/30/04 10/31/04 During Period*
-------- -------- --------------

Australia/New Zealand Fund (13.90%) $1,000.00 $1,138.99 $12.58
Japan Fund (-9.52%) 1,000.00 904.76 14.55
Global Fund (9.80%) 1,000.00 1,098.02 12.92
Real Estate Securities Fund (16.08%) 1,000.00 1,160.79 17.53

Beginning Ending
Account Value Account Value Expenses Paid
Hypothetical 5% Fund Return 04/30/04 10/31/04 During Period*
-------- -------- --------------

Australia/New Zealand Fund $1,000.00 $1,013.38 $11.84
Japan Fund 1,000.00 1,009.85 15.36
Global Fund 1,000.00 1,012.82 12.40
Real Estate Securities Fund 1,000.00 1,008.91 16.30

* Expenses are equal to the Funds' annualized expense ratios of 2.34%,
3.04%, 2.45% and 3.23% for the Australia/New Zealand Fund, the Japan Fund,
the Global Fund and the Real Estate Securities Fund, respectively,
multiplied by the average account value over the period, multiplied by
184/366 to reflect the one-half year period.

For more information on Fund expenses, please refer to the Funds' prospectus,
which can be obtained from your investment representative or by calling
888-345-1898. Please read it carefully before you invest or send money.

COMMONWEALTH INTERNATIONAL SERIES TRUST

Comparison of Change in Value of a $10,000 Investment in Commonwealth Australia/
New Zealand Fund* and the NZSCI**, NZSE50FG*** and AS30**** Indices

[THE FOLLOWING TABLE WAS DEPICTED AS A MOUNTAIN CHART IN THE PRINTED MATERIAL]

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Commonwealth Australia/New Zealand NZSCI NZSE50FG AS30
- ------------------------------------------------------------------------------------------------------------------

10/31/94 10,000 10/31/94 10,000
10/31/95 11,222 10/31/95 10,590
10/31/96 13,469 10/31/96 14,522
10/31/97 12,061 10/31/97 13,798
10/31/98 8,457 10/31/98 9,771
10/31/99 10,181 10/31/99 13,393
10/31/00 7,943 10/31/00 11,050 01/05/01 10,000 10/31/00 10,000
10/31/01 9,423 10/31/01 14,604 10/31/01 10,153 10/31/01 10,108
10/31/02 11,478 10/31/02 18,672 10/31/02 12,990 10/31/02 10,982
10/31/03 15,952 10/31/03 30,057 10/31/03 18,886 10/31/03 16,149
10/31/04 18,617 10/31/04 42,041 10/31/2004 25,703 10/31/04 20,683
- ------------------------------------------------------------------------------------------------------------------

PAST PERFORMANCE IS NOT INDICATIVE OF FUTURE RESULTS. The investment return and
principal value of an investment will fluctuate so that an investor's shares,
when redeemed, may be worth more or less than their original cost. The graph and
the average annual total returns do not reflect the deduction of taxes that a
shareholder would pay on Fund distributions and the redemption of Fund shares.
Otherwise, returns would have been lower. You should carefully consider the
investment objectives, risks, charges and expenses of the Funds before
investing. This and other information can be found in the Funds' prospectus,
which can be obtained from your investment representative or by calling
888-345-1898. Please read it carefully before you invest or send money.

Average Annual Total Return
as of 10/31/04
-----------------------------
1 Year 5 Year 10 Year
------- ------ --------

Commonwealth Australia/New Zealand Fund 16.70% 12.81% 6.41%
New Zealand Small Companies Index 39.87% 25.68% 15.43%
New Zealand Limited 50 Free Float Total Return Index 36.09% -- --
Australian All Ordinaries Index 28.07% -- --

COMMONWEALTH INTERNATIONAL SERIES TRUST

* The Fund's performance assumes the reinvestment of all income dividends
and capital gains distributions, if any. All market indices are unmanaged,
do not incur fees and it is not possible to invest directly in any index.

** New Zealand Small Companies Index is a capitalization-weighted index of
all New Zealand equities excluding those on the New Zealand Stock Exchange
40 Index and is not an investment product available for purchase.

*** The New Zealand Exchange Limited 50 Free Float Total Return Index is a
modified market capitalization weighted index. This index consists of the
top 50 companies by free float adjusted market capitalization that are
listed on the New Zealand Exchange Limited and is not an investment
product available for purchase. The New Zealand Stock Exchange launched
the new headline index, NZSX 50, to bring its primary benchmark index in
line with international best practice, and to better reflect the
performance and returns to shareholders, derived from investment in
securities on the New Zealand Stock Exchange. The existing sector indices
calculated by the New Zealand Stock Exchange will be discontinued and new
sector indices based on global criteria (such as the Global Industry
Classification System) will be introduced to allow comparability to
overseas exchange. Because of these improvements in performance
measurements, the fund will begin using the New Zealand Stock Exchange
Limited 50 Free Float Total Return Index.

**** The Australian All Ordinaries Index is a capitalization-weighted index
comprised of the largest 500 companies as measured by market
capitalization that are listed on the Australian Stock Exchange and is not
an investment product available for purchase. This index is made part of
the comparative analysis due to a change in investment objective by the
Fund.

COMMONWEALTH INTERNATIONAL SERIES TRUST

Comparison of Change in Value of a $10,000 Investment in Commonwealth Japan Fund
and the TOPIX***

[THE FOLLOWING TABLE WAS DEPICTED AS A MOUNTAIN CHART IN THE PRINTED MATERIAL]

- -------------------------------------------------------------------------------------------
Commonwealth Japan Fund TOPIX
- -------------------------------------------------------------------------------------------

10/31/94 10,000 10/31/94 10,000
10/31/95 8,418 10/31/95 8,520
10/31/96 8,482 10/31/96 8,438
10/31/97 6,537 10/31/97 6,649
10/31/98 5,709 10/31/98 5,611
10/31/99 8,632 10/31/99 9,545
10/31/00 7,076 10/31/00 8,088
10/31/01 5,169 10/31/01 5,582
10/31/02 4,228 10/31/02 4,581
10/31/03 4,994 10/31/03 6,233
10/31/04 4,529 10/31/04 6,798
- -------------------------------------------------------------------------------------------

Average Annual
Total Return as of 10/31/04
------------------------------
1 Year 5 Year 10 Year
------ ------ -------
Commonwealth Japan Fund** (9.30)% (12.09)% (7.61)%
TOPIX 9.06% (6.56)% (3.78)%

** The Fund's performance assumes the reinvestment of all income dividends
and capital gains distributions, if any. All market indices are unmanaged,
do not incur fees and it is not possible to invest directly in any index.

*** The TOPIX, also known as the Tokyo Price Index, is a
capitalization-weighted index of all the companies listed on the First
Section of the Tokyo Stock Exchange and is not an investment vehicle
available for purchase.

COMMONWEALTH INTERNATIONAL SERIES TRUST

Comparison of Change in Value of a $10,000 Investment in Commonwealth Global
Fund and the MSCI World Index**

[THE FOLLOWING TABLE WAS DEPICTED AS A MOUNTAIN CHART IN THE PRINTED MATERIAL]

- --------------------------------------------------------------------------------
Commonwealth Global Fund MSCI World Index
- --------------------------------------------------------------------------------

12/03/02 10000 12/03/02 10000
12/31/02 9940 12/31/02 9673
01/31/03 9810 01/31/03 9381
02/28/03 9620 02/28/03 9221
03/31/03 9470 03/31/03 9197
04/30/03 10040 04/30/03 10017
05/31/03 10560 05/31/03 10596
06/30/03 10780 06/30/03 10784
07/31/03 10880 07/31/03 11004
08/31/03 11120 08/31/03 11246
09/30/03 11130 09/30/03 11317
10/31/03 11990 10/31/03 11991
11/30/03 12220 11/30/03 12177
12/31/03 12890 12/31/03 12943
01/31/04 13070 01/31/04 13154
02/29/04 13190 02/29/04 13380
03/31/04 13260 03/31/04 13297
04/30/04 12650 04/30/04 13034
05/31/04 12920 05/31/04 13159
06/30/04 13300 06/30/04 13435
07/31/04 12940 07/31/04 12999
08/31/04 13010 08/31/04 13063
09/30/04 13520 09/30/04 13315
10/31/04 13890 10/31/04 13644
- --------------------------------------------------------------------------------

Average Annual Total Return
as of October 31, 2004
----------------------------
1 Year Inception*
------ ----------
Commonwealth Global Fund** 15.85% 18.75%
MSCI World Index*** 13.79% 17.64%

* The Commonwealth Global Fund commenced operations on December 3, 2002.

*** The MSCI World Index is a free float-adjusted market capitalization index
that is designed to measure global developed market equity performance
and is not an investment product available for purchase. As of October 31,
2004 the MSCI World Index consisted of the following 23 developed market
country indices: Australia, Austria, Belgium, Canada, Denmark, Finland,
France, Germany, Greece, Hong Kong, Ireland, Italy, Japan, Netherlands,
New Zealand, Norway, Portugal, Singapore, Spain, Sweden, Switzerland, the
United Kingdom and the United States.

COMMONWEALTH INTERNATIONAL SERIES TRUST

Comparison of Change in Value of a $10,000 Investment in Commonwealth Real
Estate Securities Fund* ** and the Morgan Stanley REIT Index***.

[THE FOLLOWING TABLE WAS DEPICTED AS A MOUNTAIN CHART IN THE PRINTED MATERIAL]

- --------------------------------------------------------------------------------
Commonwealth Real Estate Securities Fund Morgan Stanley REIT Index
- --------------------------------------------------------------------------------

01/05/04 10000 01/05/04 10,000
01/31/04 10030 01/31/04 10,446
02/29/04 10110 02/29/04 10,621
03/31/04 10280 03/31/04 11,214
04/30/04 9080 04/30/04 9,552
05/31/04 9470 05/31/04 10,237
06/30/04 9590 06/30/04 10,528
07/31/04 9530 07/31/04 10,583
08/31/04 9960 08/31/04 11,433
09/30/04 10190 09/30/04 11,411
10/31/04 10540 10/31/04 12,035
- --------------------------------------------------------------------------------

Average Annual Total Return
from commencement of operations
to October 31, 2004*
-------------------------------

Commonwealth Real Estate Securities Fund* ** 5.40%
Morgan Stanley REIT Index*** 20.35%

* Real Estate Securities Fund commenced operations on January 5, 2004.

*** The Morgan Stanley REIT Index is a total return index comprising of the
most actively traded real estate investment trusts and is designed to be a
measure of real estate equity performance.

COMMONWEALTH INTERNATIONAL SERIES TRUST
COMMONWEALTH AUSTRALIA/NEW ZEALAND FUND

SCHEDULE OF INVESTMENTS - OCTOBER 31, 2004
- --------------------------------------------------------------------------------

Shares Value
------- --------
AUSTRALIA (15.55%)

COMMON STOCK (13.20%)

ADVERTISING (0.56%)
STW Communications Group, Ltd. ....................... 100,000 $239,020
--------
AIRLINES (0.86%)
Qantas Airways, Ltd. ................................. 150,000 371,975
--------
BANKS (0.89%)
Australia & New Zealand Banking Group, Ltd. - ADR .... 5,000 383,550
--------
BEVERAGES (1.02%)
Coco-Cola Amatil, Ltd. ............................... 80,000 439,797
--------
BUILDING (2.25%)
James Hardie Industries NV ........................... 96,200 548,703
Rinker Group, Ltd. ................................... 65,000 421,422
--------
970,125
--------
DIVERSIFIED HOLDINGS (1.25%)
Patrick Corp., Ltd. .................................. 130,000 539,886
--------
ENGINEERING & CONSTRUCTION (0.32%)
Bradken, Ltd. * ...................................... 60,000 138,034
--------
FINANCIAL SERVICES (0.97%)
Perpetual Trustees Australia, Ltd. ................... 10,000 416,044
--------
FOOD (0.83%)
Burns Philp & Co., Ltd. * ............................ 600,000 358,530
--------
INSURANCE (1.03%)
Promina Group, Ltd. .................................. 40,000 135,644
QBE Insurance Group, Ltd. ............................ 30,000 307,664
--------
443,308
--------

COMMONWEALTH INTERNATIONAL SERIES TRUST
COMMONWEALTH AUSTRALIA/NEW ZEALAND FUND

SCHEDULE OF INVESTMENTS - OCTOBER 31, 2004
- --------------------------------------------------------------------------------

Shares Value
------- ---------
MINING AND BUILDING MATERIALS (1.11%)
Alumina, Ltd. .................................. 64,000 $ 262,922
Oxiana, Ltd. * ................................. 300,000 217,359
---------
480,281
---------
MISCELLANEOUS MANUFACTURING (0.36%)
Wesfarmers, Ltd. ............................... 6,000 $ 155,737
---------
OIL & GAS (1.17%)
Origin Energy, Ltd. ............................ 100,000 504,183
---------
PACKAGING & CONTAINERS (0.53%)
Amcor, Ltd. - ADR .............................. 10,000 227,100
---------
TELECOMMUNICATIONS (0.05%)
Telstra Corp., Ltd. - ADR ...................... 1,200 20,952
---------
TOTAL COMMON STOCK (Cost $4,399,245) ......... 5,688,522
---------
BONDS (1.72%)

Principal
---------
Nestle Australia, Ltd., 4.75%,
due 11/21/05 + (cost $740,538) ............... 1,000,000 743,158
---------
CALL OPTIONS (0.63%)

Expiration Date -
Underlying Common Stock Exercise Price Contracts
----------------------- -------------- ---------
BHP Billiton Plc ................. 02/19/05 - 15 200 110,000
News Corp., Ltd. ................. 01/22/05 - 25 70 50,400
News Corp., Ltd. ................. 04/16/05 - 25 30 25,800
Rio Tinto Plc .................... 01/22/05 - 85 40 85,600
---------
TOTAL CALL OPTIONS (Cost $237,460) ................. $271,800
---------
TOTAL AUSTRALIA (Cost $5,377,243)................. 6,703,480
---------

COMMONWEALTH INTERNATIONAL SERIES TRUST
COMMONWEALTH AUSTRALIA/NEW ZEALAND FUND

SCHEDULE OF INVESTMENTS - OCTOBER 31, 2004
- --------------------------------------------------------------------------------

Shares Value
------- ----------
NEW ZEALAND (57.47%)

COMMON STOCK (30.11%)

AGRICULTURE (3.51%)
Allied Farmers, Ltd. ......................... 1 $ 1
Pyne Gould Guiness, Ltd. ..................... 539,789 705,293
Williams & Kettle, Ltd. ...................... 375,000 808,079
----------
1,513,373
----------
AIRPORT DEVELOPMENT (1.17%)
Auckland International Airport, Ltd. ......... 102,400 502,963
----------
APPLIANCES (1.50%)
Fisher & Paykel Appliances Holdings, Ltd. .... 150,000 410,453
Scott Technology, Ltd. ....................... 101,246 235,487
----------
645,940
----------
BUILDING MATERIALS (0.43%)
Fletcher Building, Ltd. ...................... 50,000 186,414
----------
CHEMICALS (0.91%)
Nuplex Industries, Ltd. ...................... 111,355 390,786
----------
COMMERCIAL SERVICES (0.20%)
Taylors Group, Ltd. .......................... 54,050 87,261
----------
COMPUTER SERVICES (0.46%)
Renaissance Corp., Ltd. ...................... 451,434 200,733
----------
ELECTRICAL SERVICES (0.84%)
Contact Energy, Ltd. ......................... 88,700 362,251
----------
FOREST AND PAPER PRODUCTS (0.58%)
Evergreen Forests, Ltd. * .................... 448,500 107,385
Nuhaka Forestry Fund ......................... 50,000 141,948
----------
249,333
----------

COMMONWEALTH INTERNATIONAL SERIES TRUST
COMMONWEALTH AUSTRALIA/NEW ZEALAND FUND

SCHEDULE OF INVESTMENTS - OCTOBER 31, 2004
- --------------------------------------------------------------------------------

Shares Value
------- ----------
HEALTHCARE (3.93%)
Fisher & Paykel Healthcare Corp. ............. 403,195 $ 799,881
Ryman Healthcare, Ltd. ....................... 250,000 572,924
Wakefield Hospital, Ltd. ..................... 150,682 319,547
----------
1,692,352
----------
MANUFACTURING (0.57%)
Skellmax Industries .......................... 300,000 246,272
----------
MEDIA (1.57%)
Independent Newspapers, Ltd. ................. 195,000 674,990
----------
PORTS (5.03%)
Port of Tauranga, Ltd. ....................... 175,000 676,392
Ports of Auckland, Ltd. ...................... 133,392 611,388
South Port New Zealand, Ltd. ................. 1,027,930 878,993
----------
2,166,773
----------
REAL ESTATE (2.48%)
Calan Healthcare Properties Trust ............ 901,814 561,397
Capital Properties New Zealand, Ltd. ......... 100,000 68,409
Kiwi Income Property Trust ................... 293,511 218,858
URBUS Properties, Ltd. ....................... 300,000 219,592
----------
1,068,256
----------
RENTAL EQUIPMENT (0.73%)
Hirequip New Zealand, Ltd. ................... 407,500 315,005
----------
RETAIL (0.71%)
Hallenstein Glasson Holdings, Ltd. ........... 100,000 246,956
Restaurant Brands New Zealand, Ltd. .......... 63,270 59,730
----------
306,686
----------
STEEL (1.02%)
Steel and Tube Holding, Ltd. ................. 140,000 441,510
----------

COMMONWEALTH INTERNATIONAL SERIES TRUST
COMMONWEALTH AUSTRALIA/NEW ZEALAND FUND

SCHEDULE OF INVESTMENTS - OCTOBER 31, 2004
- --------------------------------------------------------------------------------

Shares Value
-------- ----------

TEXTILES (0.87%)
Feltex Carpets, Ltd. .......................................... 350,000 $ 373,512
----------
TRANSPORT SERVICES (0.30%)
Toll NZ, Ltd. * ............................................... 70,000 130,250
----------
UTILITIES (1.41%)
Infratil, Ltd. * .............................................. 333,274 607,212
----------
WASTE MANAGEMENT (1.89%)
Waste Management NZ, Ltd. ..................................... 222,154 816,095
----------
TOTAL COMMON STOCK (Cost $8,579,950) ........................ 12,977,967
----------
BONDS (22.90%) Principal
---------
Bank of New Zealand, 7.50%,
due 09/15/05 # ............................................. 500,000 343,990
Coca-Cola Amatil, Ltd., 8.00%,
due 06/15/05 # ............................................. 500,000 355,247
Evergreen Forests, Ltd., zero coupon, due 03/19/09 # .......... 103,051 92,350
Fletcher Building Finance, Ltd., 8.60%, due 03/15/08 # ........ 775,000 553,549
Fonterra Cooperative Group, Ltd. Perpetual Notes, 7.73%,
due 11/10/50 # ............................................. 1,000,000 740,525
Global Corporate Credit, Ltd., Credit Linked Notes, 7.20%,
due 12/30/08 # ............................................. 800,000 544,534
Global Market, Ltd., GEM Linked Notes, zero coupon,
due 01/18/08 ............................................... 3,200,000 2,320,427
GPG Finance Plc, 8.70%, due 12/15/08 # ........................ 1,500,000 1,069,025
H.J. Heinz Co., Ltd., 6.85%, due 02/15/05 # ................... 1,500,000 1,041,935
National Bank Of New Zealand, 6.87%, due 04/18/11 # ........... 500,000 341,976
New Zealand Government Bond, 6.50%, due 02/15/05 # ............ 1,000,000 684,261
TCNZ Finance, Ltd., 7.50%, due 09/15/06 # ..................... 500,000 349,979
Transpower Finance, Ltd., 8.00%, due 06/15/05 # ............... 500,000 355,760
URBUS Properties, Ltd. Convertible Notes, 9.25%, due 03/10/07 # 563,325 396,925
Westpac Banking Corp., 6.25%, 10/24/05 # ...................... 1,000,000 680,606
----------
TOTAL BONDS (Cost $8,409,840) ............................... 9,871,089
----------
SHORT TERM INVESTMENTS (2.07%)
Forsyth Barr Money Market # (Cost $860,171) ................... 1,304,225 892,205
----------

COMMONWEALTH INTERNATIONAL SERIES TRUST
COMMONWEALTH AUSTRALIA/NEW ZEALAND FUND

SCHEDULE OF INVESTMENTS - OCTOBER 31, 2004
- --------------------------------------------------------------------------------

Shares Value
------ ------------

INVESTMENT COMPANIES (2.39%)
New Zealand Investment Trust Plc (Cost $850,225) .......................... 220,169 $ 1,030,206
------------
TOTAL NEW ZEALAND (Cost $18,700,186) ............................ 24,771,467
------------
UNITED STATES (29.75%)
Principal/Shares
----------------
INVESTMENT COMPANIES (1.70%)
Aberdeen Asia-Pacific Income Fund, Inc. ................................... 17,700 112,218
iShares MSCI Australia Index Fund ......................................... 40,000 618,800
-------
TOTAL INVESTMENT COMPANIES (Cost $661,681) ...................... 731,018
-------
SHORT TERM INVESTMENTS (28.05%)
Fifth Third Bank Repurchase Agreement, 1.19%, dated 10/29/04, due 11/01/04,
repurchase price $8,032,218 (collateralized by FGLMC Pool # C78998, due
05/01/33, market value $8,192,311) ..................................... 8,031,422 8,031,422
Fifth Third Institutional Government Money Market Fund, 1.35% ** .......... 2,030,168 2,030,168
Fifth Third U.S. Treasury Money Market Fund, 1.23% ** ..................... 2,030,167 2,030,167
------------
TOTAL SHORT TERM INVESTMENTS (Cost $12,091,757) ................. 12,091,757
------------
TOTAL UNITED STATES (Cost $12,753,438) .......................... 12,822,775
------------
TOTAL INVESTMENTS (Cost $36,830,867) (102.77%) .................. 44,297,722
LIABILITIES IN EXCESS OF OTHER
ASSETS, NET (-2.77%) ......................................... (1,194,690)
------------
NET ASSETS (100.00%) ............................................ $ 43,103,032
============

* Non-income producing investment

** Rate shown represents the rate at October 31, 2004, is subject to change
and resets daily.

# Principal amount shown is in New Zealand Dollars; Value shown is in U.S.
Dollars.

+ Principal amount shown is in Australian Dollars; Value shown is in U.S.
Dollars. ADR American Depository Receipt.

The accompanying notes are an integral part of these
financial statements.

COMMONWEALTH INTERNATIONAL SERIES TRUST
COMMONWEALTH JAPAN FUND

SCHEDULE OF INVESTMENTS - OCTOBER 31, 2004
- --------------------------------------------------------------------------------
Shares Value
------ --------
COMMON STOCK (79.88%)

AIRLINES (0.87%)
All Nippon Airways Co., Ltd. ................... 22,000 $ 68,575
-------
AUTOMOBILE MANUFACTURERS (3.78%)
Fuji Heavy Industries, Ltd. .................... 15,000 72,747
Nissan Motor Co., Ltd. - ADR ................... 10,000 224,500
-------
297,247
-------
AUTOMOBILE PARTS AND EQUIPMENT (5.05%)
Bridgestone Corp. - ADR ........................ 4,000 144,646
Calsonic Kansei Corp. .......................... 7,000 50,560
NGK Spark Plug Co., Ltd. ....................... 12,000 117,751
Sumitomo Rubber Industries, Inc. ............... 10,000 85,036
-------
397,993
-------
CHEMICALS (0.87%)
Kansai Paint Co., Ltd. ......................... 12,000 68,820
-------
COMMERICAL SERVICES (1.23%)
Tosho Printing Co., Ltd. ....................... 30,000 96,619
-------
COMPUTERS (2.29%)
TDK Corp. - ADR ................................ 2,600 180,284
-------
COSMETICS (1.60%)
Uni-Charm Corp. ................................ 2,500 126,189
-------
DISTRIBUTION / WHOLESALE (3.18%)
Marubeni Corp. ................................. 45,000 117,808
Mitsubishi Corp. ............................... 12,000 132,329
-------
250,137
-------

COMMONWEALTH INTERNATIONAL SERIES TRUST
COMMONWEALTH JAPAN FUND

SCHEDULE OF INVESTMENTS - OCTOBER 31, 2004
- --------------------------------------------------------------------------------
Shares Value
------ --------
DIVERSIFIED FINANCIAL SERVICES (1.31%)
Nomura Holdings, Inc. - ADR ...................... 8,500 $103,445
--------
ELECTRIC AND POWER (3.51%)
Hokkaido Electric Power Co., Inc. ................ 6,000 111,028
Tohoku Electric Power Co., Inc. .................. 9,700 165,244
--------
276,272
--------
ELECTRICAL COMPONENTS AND EQUIPMENT (2.19%)
FANUC, LTD ....................................... 2,000 120,539
Ushio, Inc. ...................................... 3,000 51,869
--------
172,408
--------
ELECTRONICS (3.69%)
Advantest Corp. - ADR ............................ 5,000 87,200
Keyence Corp. .................................... 500 112,440
Yokogawa Electric Corp. .......................... 7,000 91,101
--------
290,741
--------
FOOD (2.53%)
Ajinomoto Co., Inc. - ADR ........................ 1,800 199,002
--------
GAS DISTRIBUTION (1.41%)
Toho Gas Co., Ltd. ............................... 35,000 111,075
--------
HAND / MACHINE TOOLS (3.36%)
Meidensha Corp. .................................. 38,000 74,075
Nidec Corp. - ADR ................................ 7,000 190,400
--------
264,475
--------
HEALTHCARE PRODUCTS. (2.46%)
Hoya Corp. ....................................... 600 61,475
Nakanishi, Inc. .................................. 2,000 132,216
--------
193,691
--------

COMMONWEALTH INTERNATIONAL SERIES TRUST
COMMONWEALTH JAPAN FUND

SCHEDULE OF INVESTMENTS - OCTOBER 31, 2004
- --------------------------------------------------------------------------------
Shares Value
------- --------
HOME FURNISHINGS (3.51%)
Alpine Electronics Inc. ............................ 8,000 $103,437
Matsushita Electric Industrial Co., Ltd. - ADR ..... 6,800 98,668
Pioneer Corp. - ADR ................................ 4,000 74,000
-------
276,105
-------
INSURANCE (3.06%)
Millea Holdings, Inc. - ADR ........................ 2,310 152,760
T&D Holdings, Inc. ................................. 2,000 88,144
-------
240,904
-------
IRON/STEEL PRODUCERS (4.25%)
JFE Holdings, Inc. ................................. 7,000 187,541
Nippon Steel Corp. ................................. 63,000 147,133
-------
334,674
-------
LEISURE AND RECREATION (1.52%)
Sankyo Co., Ltd. ................................... 3,000 119,785
-------
MACHINERY (3.61%)
Kubota Corp. - ADR ................................. 8,000 182,000
Toyota Industries Corp. ............................ 4,500 101,916
-------
283,916
-------
MEDIA (0.86%)
Fuji Television Network, Inc. ...................... 30 67,521
-------
OFFICE EQUIPMENT & SUPPLIES (2.79%)
Canon, Inc. - ADR .................................. 3,500 173,250
Ricoh Co., Ltd. - ADR .............................. 500 46,125
-------
219,375
-------
PHARMACEUTICALS (4.05%)
Chugai Pharmaceutical Co., Ltd. .................... 8,500 132,875
Sawai Pharmaceutical Co., Ltd. ..................... 3,000 89,274
Takeda Pharmaceutical Co., Ltd. .................... 2,000 96,431
-------
318,580
-------

COMMONWEALTH INTERNATIONAL SERIES TRUST
COMMONWEALTH JAPAN FUND

SCHEDULE OF INVESTMENTS - OCTOBER 31, 2004
- --------------------------------------------------------------------------------
Shares Value
-------- ----------
PHOTO EQUIPMENT (0.73%)
Fuji Photo Film Co., Ltd. - ADR .............. 1,700 $ 57,834
----------
REAL ESTATE (2.73%)
Sumitomo Realty & Development Co., Ltd. ...... 12,000 131,651
Tokyo Tatemono Co., Ltd. ..................... 15,000 83,341
----------
214,992
----------
RETAIL (2.45%)
Seven-Eleven Japan Co., Ltd. ................. 3,000 86,731
Yamada Denki Co., Ltd. ....................... 3,000 106,225
----------
192,956
----------
TELECOMMUNICATIONS (1.71%)
Nippon Telegraph & Telephone Corp. - ADR ..... 3,000 63,750
NTT DoCoMo, Inc. - ADR ....................... 4,000 70,600
----------
134,350
----------
TEXTILES (1.79%)
Ichikawa Co., Ltd. ........................... 35,000 141,068
----------
TRANSPORTATION (7.49%)
East Japan Railway Co. ....................... 23 120,642
Hankyu Corp. ................................. 22,000 79,348
Keihin Electric Express Railway Co., Ltd. .... 13,000 74,922
Keio Electric Railway Co., Ltd. .............. 18,000 95,094
Nippon Yusen Kabushiki Kaisha ................ 15,000 75,290
Tobu Railway Co., Ltd. ....................... 18,000 63,904
Yamato Transport Co., Ltd. ................... 6,000 80,742
----------
589,942
----------
TOTAL COMMON STOCK (Cost $5,587,808) ....... $6,288,975
----------

COMMONWEALTH INTERNATIONAL SERIES TRUST
COMMONWEALTH JAPAN FUND

SCHEDULE OF INVESTMENTS - OCTOBER 31, 2004
- --------------------------------------------------------------------------------

Shares Value
-------- ---------

INVESTMENT COMPANIES (21.11%)
iShares MSCI Japan Index Fund .......................... 40,000 $ 397,200
iShares S&P/TOPIX 150 Index Fund ....................... 5,000 427,550
Japan Equity Fund, Inc. * .............................. 48,500 294,880
Japan Smaller Capitalization Fund, Inc. * .............. 22,000 254,980
Morgan Stanley Asia Pacific Fund, Inc. ................. 25,000 287,250
----------
TOTAL INVESTMENT COMPANIES (Cost $1,573,449) ......... 1,661,860
----------
CALL OPTIONS (3.34%)

Expiration Date -
Underlying Common Stock Exercise Price Contracts
----------------------- --------------- ---------
AFLAC, Inc. ................................... 11/20/04 - 35 40 4,800
Honda Motor Co., Ltd. ......................... 01/22/05 - 17.5 80 53,600
Honda Motor Co., Ltd. ......................... 04/16/05 - 22.5 40 10,400
Mitsubishi Tokyo Financial Group, Inc. ........ 02/19/05 - 5 100 34,000
NIPPON TELEGRAPH AND TELEPHONE CORP ........... 01/18/05 - 20 100 16,500
Sony Corp. .................................... 01/22/05 - 25 30 29,700
Sony Corp. .................................... 04/16/05 - 25 50 50,000
Toyota Motor Corp. ............................ 01/22/05 - 65 50 64,000
----------
TOTAL CALL OPTIONS (Cost $324,975) .......... 263,000
----------
TOTAL INVESTMENTS (Cost $7,486,232)(104.33%) $8,213,835
LIABILITIES IN EXCESS OF OTHER ASSETS,
NET (-4.33%) .............................. (340,876)
----------
NET ASSETS (100%) ........................... $7,872,959
==========

* Non-Income producing investment.
ADR American Depository Receipt.

The accompanying notes are an integral part of these financial statements.

COMMONWEALTH INTERNATIONAL SERIES TRUST
COMMONWEALTH GLOBAL FUND

SCHEDULE OF INVESTMENTS - OCTOBER 31, 2004
- --------------------------------------------------------------------------------
Shares Value
-------- ---------
COMMON STOCK (75.77%)

BRAZIL (1.19%)
Cia Vale do Rio Doce - ADR ................... 8,400 $ 177,744
---------
CANADA (2.63%)
ATI Technologies, Inc. * ..................... 10,000 180,500
Vitran Corp., Inc. * ......................... 13,000 213,200
---------
393,700
---------
FRANCE (3.01%)
BNP Paribas - ADR ............................ 5,000 169,660
Lafarge SA - ADR ............................. 5,000 114,650
Total SA - ADR ............................... 1,600 166,848
---------
451,158
---------
GERMANY (2.25%)
Bayer AG - ADR ............................... 3,600 102,132
SAP AG - ADR ................................. 2,000 85,300
Siemens AG - ADR ............................. 2,000 149,480
---------
336,912
---------
GREAT BRITAIN (9.61%)
Anglo American Plc - ADR ..................... 6,500 144,560
British Airways Plc - ADR .................... 3,800 151,962
GlaxoSmithKline Plc - ADR .................... 3,000 127,200
Intercontinental Hotels Group Plc - ADR ...... 12,979 160,680
Lloyds TSB Group Plc - ADR ................... 4,900 156,457
Mitchells & Butlers Plc - ADR ................ 19,175 102,203
National Grid Transco Plc - ADR .............. 3,500 154,350
Rio Tinto Plc - ADR .......................... 1,000 106,300
Tate & Lyle Plc - ADR ........................ 4,000 124,377
United Utilities Plc - ADR ................... 5,000 107,200
Vodafone Group Plc - ADR ..................... 4,000 103,160
---------
1,438,449
---------

COMMONWEALTH INTERNATIONAL SERIES TRUST
COMMONWEALTH GLOBAL FUND

SCHEDULE OF INVESTMENTS - OCTOBER 31, 2004
- --------------------------------------------------------------------------------
Shares Value
HONG KONG (0.58%)
Cathay Pacific Airways, Ltd. ADR ............. 10,000 $ 86,723
-------
INDIA (4.76%)
ICICI Bank, Ltd. - ADR ....................... 20,000 315,200
Infosys Technologies, Ltd. - ADR ............. 4,400 292,600
Satyam Computer Services, Ltd. - ADR ......... 4,000 105,080
-------
712,880
-------
ITALY (1.06%)
Natuzzi SpA - ADR ............................ 10,000 102,900
Telecom Italia SpA - ADR ..................... 1,650 55,110
-------
158,010
-------
MEXICO (1.44%)
America Movil SA de CV - ADR ................. 2,400 105,600
Grupo Televisa SA - ADR ...................... 2,000 110,000
-------
215,600
-------
NETHERLANDS (3.51%)
ING Groep NV - ADR ........................... 7,842 208,832
Koninklijke Philips Electronics NV ........... 3,000 71,460
Royal Dutch Petroleum Co. .................... 1,300 70,512
Unilever NV .................................. 3,000 174,870
-------
525,674
-------
PORTUGAL (0.45%)
Portugal Telecom SGPS SA - ADR ............... 6,000 67,920
-------
SOUTH AFRICA (0.82%)
AngloGold Ashanti, Ltd. - ADR ................ 3,300 122,364
-------
SOUTH KOREA (0.67%)
Kookmin Bank - ADR ........................... 3,000 100,890
-------

COMMONWEALTH INTERNATIONAL SERIES TRUST
COMMONWEALTH GLOBAL FUND

SCHEDULE OF INVESTMENTS - OCTOBER 31, 2004
- --------------------------------------------------------------------------------
Shares Value
------- --------
SPAIN (2.68%)
Banco Santander Central Hispano SA - ADR ......... 17,000 $190,060
Endesa SA - ADR .................................. 5,000 102,100
Repsol YPF SA - ADR .............................. 5,000 108,350
-------
400,510
-------
SWITZERLAND (1.51%)
Nestle SA - ADR .................................. 2,000 117,878
UBS AG ........................................... 1,500 108,735
-------
226,613
-------
UNITED STATES (39.60%)
Activision, Inc. * ............................... 13,762 199,274
AGCO Corp. * ..................................... 7,500 145,650
American National Insurance ...................... 1,000 105,130
Andrx Corp. * .................................... 4,000 86,560
Applied Industrial Technologies, Inc. ............ 2,500 93,000
BJ's Wholesale Club, Inc. * ...................... 5,075 147,327
Bradley Pharmaceuticals, Inc. * .................. 7,000 115,920
Bunge Ltd. ....................................... 4,000 190,920
Casella Waste Systems, Inc. * .................... 10,000 124,200
Compass Bancshares, Inc. ......................... 3,650 174,361
Conmed Corp. * ................................... 5,720 160,560
Continental Airlines, Inc. * ..................... 10,000 92,800
Cooper Cos., Inc. ................................ 2,600 182,910
Dentsply International , Inc. .................... 3,350 174,234
DST Systems, Inc. * .............................. 3,885 174,242
Headwaters, Inc. * ............................... 7,000 220,500
Imation Corp. .................................... 5,000 156,350
Independence Community Bank Corp. ................ 3,000 112,890
International Rectifier Corp. * .................. 2,500 99,375
Lubrizol Corp. ................................... 5,055 175,560
Magnum Hunter Resources, Inc. * .................. 10,000 121,000
Manpower, Inc. ................................... 3,050 138,013
Metris Cos., Inc. * .............................. 13,000 124,800

COMMONWEALTH INTERNATIONAL SERIES TRUST
COMMONWEALTH GLOBAL FUND

SCHEDULE OF INVESTMENTS - OCTOBER 31, 2004
- --------------------------------------------------------------------------------
Shares Value
------ ----------
Michaels Stores, Inc. .................................. 3,100 $ 90,210
Microchip Technology, Inc. ............................. 3,455 104,514
Nautilus Group, Inc. ................................... 7,500 147,375
NCO Group, Inc. * ...................................... 4,350 116,363
New York Community Bancorp, Inc. ....................... 6,017 110,472
Norfolk Southern Corp. ................................. 5,000 169,750
Pacer International, Inc. * ............................ 5,000 88,750
Pec Solutions, Inc. * .................................. 7,700 107,877
Pentair, Inc. .......................................... 7,760 290,069
PMI Group, Inc. ........................................ 3,200 124,224
Quanex Corp. ........................................... 3,550 179,985
Sandisk Corp. # * ...................................... 5,000 104,350
SCANA Corp. ............................................ 3,075 114,082
Scotts Co. * ........................................... 1,000 64,220
Smith International, Inc. * ............................ 2,245 130,390
Sonic Automotive, Inc. ................................. 5,000 101,150
Sovereign Bancorp, Inc. ................................ 5,425 117,451
Tecumseh Products Co. * ................................ 3,300 142,824
Varco International, Inc. * ............................ 4,345 120,270
Vishay Intertechnology, Inc. * ......................... 8,000 103,440
Westar Energy, Inc. .................................... 4,000 83,800
----------
5,927,142
----------
TOTAL COMMON STOCK (Cost $9,063,964) ................. 11,342,289
----------
INVESTMENT COMPANIES (17.08%)
Commonwealth Australia/New Zealand Fund (a) ............ 31,455 515,544
Commonwealth Japan Fund (a) ............................ 36,589 132,086
Europe Fund, Inc. ...................................... 15,300 160,650
iShares Cohen & Steers Realty Majors Index Fund ........ 900 113,535
iShares MSCI EMU Index Fund ............................ 1,600 105,360
iShares MSCI Japan Index Fund .......................... 16,000 158,880
iShares MSCI United Kingdom Index Fund ................. 6,800 114,240
iShares Russell 2000 Index Fund ........................ 1,400 162,666
iShares Russell Midcap Growth Index Fund ............... 2,600 199,550
iShares S&P Latin America 40 Index Fund ................ 1,500 103,200

COMMONWEALTH INTERNATIONAL SERIES TRUST
COMMONWEALTH GLOBAL FUND

SCHEDULE OF INVESTMENTS - OCTOBER 31, 2004
- --------------------------------------------------------------------------------

Shares Value
--------- -------------

iShares S&P Small Cap 600/BARRA Growth Index Fund ......................... 1,500 $ 145,425
iShares S&P Small Cap 600/BARRA Value Index Fund .......................... 1,000 110,410
iShares S&P/TOPIX 150 Index Fund .......................................... 2,000 171,020
Latin America Discovery Fund, Inc. ........................................ 9,000 138,510
Midcap SPDR Trust Series 1 ................................................ 1,000 110,200
Morgan Staney Asia Pacific Fund, Inc. ..................................... 10,000 114,900
------------
TOTAL INVESTMENT COMPANIES (Cost $2,319,170) ............................ 2,556,176
------------

Principal
---------
BONDS (0.51%)
Union Carbide Corp., 6.79%, 06/01/25 (Cost $77,672) ....................... 75,000 76,875
------------
Shares
---------
PREFERRED STOCK (0.71%)
Corporate Office Properties Trust SBI MD .................................. 1,000 27,495
Equity Office Properties Trust ............................................ 1,000 51,125
Lasalle Hotel Properties .................................................. 1,000 27,910
------------
TOTAL PREFERRED STOCK (Cost $100,490) ................................... 106,530
------------

Principal
---------
SHORT TERM INVESTMENTS (10.27%)
Fifth Third Bank Repurchase Agreement, 1.19%, dated 10/29/04, due 11/01/04,
repurchase price $116,947 (collateralized by FGLMC
Pool # C78998, due 05/01/33, market value $119,773) ....................... 116,935 116,935
Fifth Third Institutional Government Money Market Fund, 1.35% ** .......... 710,129 710,129
Fifth Third U.S. Treasury Money Market Fund, 1.23% ** ..................... 710,128 710,128
------------
TOTAL SHORT TERM INVESTMENTS
(Cost $1,537,192) ..................................................... 1,537,192
------------
TOTAL INVESTMENTS (Cost $13,098,488) (104.34%) .......................... $ 15,619,062
CALL OPTIONS WRITTEN (Proceeds $18,345)(-0.00%) ......................... (250)
LIABILITIES IN EXCESS OF OTHER ASSETS,
NET (-4.34%) .......................................................... (649,818)
------------
NET ASSETS (100%) ....................................................... $ 14,968,994
------------

COMMONWEALTH INTERNATIONAL SERIES TRUST
COMMONWEALTH GLOBAL FUND

SCHEDULE OF INVESTMENTS - OCTOBER 31, 2004
- --------------------------------------------------------------------------------

CALL OPTIONS WRITTEN (-0.00%)

Expiration Date -
Underlying Common Stock Exercise Price Contracts Value
----------------------- -------------- --------- -----
Sandisk Corp. (Proceeds $18,345) 01/22/05 - 32.5 50 $(250)

# Call options have been written by the Fund against these positions. See
note 7.

* Non-income producing investment

** Rate shown represents the rate at October 31, 2004, is subject to change
and resets daily. ADR American Depository Receipt

(a) Affiliated by having the same Investment Adviser. See note 5.

The accompanying notes are an integral part of these financial statements.

COMMONWEALTH INTERNATIONAL SERIES TRUST
COMMONWEALTH REAL ESTATE SECURITIES FUND

SCHEDULE OF INVESTMENTS - OCTOBER 31, 2004
- --------------------------------------------------------------------------------
Shares Value
------ --------
COMMON STOCK (74.11%)

BUILDING MATERIALS (14.51%)
Cemex SA de CV ADR ................................. 5,400 $156,492
CRH Plc ADR ........................................ 9,200 219,954
James Hardie Industries NV ADR ..................... 5,200 120,484
Lafarge SA ADR ..................................... 5,000 114,650
Rinker Group Ltd. ADR .............................. 2,000 129,560
Universal Forest Products, Inc. .................... 1,800 66,015
USG Corp. * ........................................ 7,000 156,730
-------
963,885
-------
DISTRIBUTION / WHOLESALE (2.13%)
Wolseley Plc ADR ................................... 4,000 141,400
-------
FINANCIAL SERVICES (2.77%)
Delta Financial Corp. .............................. 8,000 70,640
Friedman Billings Ramsey Group, Inc. ............... 6,600 113,124
-------
183,764
-------
INSURANCE (1.72%)
Stewart Information Services Corp. ................. 2,700 114,534
-------
REAL ESTATE (6.54%)
Alto Palermo SA ADR ................................ 17,000 107,083
Desarrolladora Homex SA de CV ADR * ................ 7,500 139,875
IRSA Inversiones y Representaciones SA ADR * ....... 10,000 95,100
WP Carey & Co. LLC ................................. 3,000 92,700
-------
434,758
-------
REAL ESTATE INVESTMENT TRUSTS-APARTMENTS (2.66%)
Camden Property Trust .............................. 3,900 177,060
-------

COMMONWEALTH INTERNATIONAL SERIES TRUST
COMMONWEALTH REAL ESTATE SECURITIES FUND

SCHEDULE OF INVESTMENTS - OCTOBER 31, 2004
- --------------------------------------------------------------------------------
Shares Value
------ -----
REAL ESTATE INVESTMENT TRUSTS -DIVERSIFIED (6.25%)
American Financial Realty Trust ...................... 8,000 $117,600
PS Business Parks, Inc. .............................. 2,500 109,800
US Restaurant Properties, Inc. ....................... 3,500 62,020
Washington Real Estate Investment Trust .............. 4,000 125,800
-------
415,220
-------
REAL ESTATE INVESTMENT TRUSTS-HEALTH CARE (0.96%)
Senior Housing Properties Trust ...................... 3,400 63,784
-------
REAL ESTATE INVESTMENT TRUSTS-HOTELS (7.38%)
Equity Inns, Inc. .................................... 11,000 104,500
Highland Hospitality Corp. ........................... 9,800 111,720
Host Marriott Corp. .................................. 9,800 142,590
Winston Hotels, Inc. ................................. 11,900 131,495
-------
490,305
-------
REAL ESTATE INVESTMENT TRUSTS-MANUFACTURED
HOMES (1.67%)
American Land Lease, Inc. ............................ 5,600 111,216
-------
REAL ESTATE INVESTMENT TRUSTS-MORTGAGES (1.80%)
American Mortgage Acceptance Co. ..................... 4,000 64,640
New Century Financial Corp. .......................... 1,000 55,150
-------
119,790
-------
REAL ESTATE INVESTMENT TRUSTS-OFFICE PROPERTY (6.33)%
CarrAmerica Realty Corp. ............................. 3,000 96,690
Equity Office Properties Trust ....................... 4,100 115,292
HRPT Properties Trust ................................ 10,100 113,019
Kilroy Realty Corp. .................................. 2,400 95,400
-------
420,401
-------

COMMONWEALTH INTERNATIONAL SERIES TRUST
COMMONWEALTH REAL ESTATE SECURITIES FUND

SCHEDULE OF INVESTMENTS - OCTOBER 31, 2004
- --------------------------------------------------------------------------------
Shares Value
------ -----
REAL ESTATE INVESTMENT TRUSTS-REGIONAL MALLS (1.74%)
General Growth Properties, Inc. .................... 3,500 $ 115,465
---------
REAL ESTATE INVESTMENT TRUSTS-SHOPPING
CENTERS (8.88%)
Acadia Realty Trust ................................ 4,800 73,920
Agree Realty Corp. ................................. 4,400 126,456
Kite Realty Group Trust ............................ 10,000 132,000
Saul Centers, Inc. ................................. 4,100 133,250
Weingarten Realty Investors ........................ 3,450 124,752
---------
590,378
---------
REAL ESTATE INVESTMENT TRUSTS-STORAGE (1.97%)
Public Storage, Inc. ............................... 2,500 130,625

RETAIL (5.44%)
Home Depot, Inc. ................................... 3,300 135,564
Kingfisher Plc ADR ................................. 8,700 96,364
Lowe's Cos., Inc. .................................. 2,300 129,444
---------
361,372
---------
SAVINGS AND LOANS (1.36%)
Independence Community Bank Corp. .................. 2,400 90,312
---------
TOTAL COMMON STOCK (Cost $4,532,797) ............. 4,924,269
---------
INVESTMENT COMPANIES (15.44%)
AEW Real Estate Income Fund ........................ 8,000 141,600
AIM Select Real Estate Income Fund ................. 8,300 140,519
iShares Cohen & Steers Realty Majors Index Fund .... 1,800 227,070
iShares Dow Jones U.S. Real Estate Index Fund ...... 1,600 181,616
Real Estate Income Fund, Inc. ...................... 8,300 144,918
Scudder RREEF Real Estate Fund, Inc. ............... 3,700 77,293
streetTRACKS Wilshire REIT Index Fund .............. 650 113,067
---------
TOTAL INVESTMENT COMPANIES (Cost $912,644) ....... 1,026,083
---------

COMMONWEALTH INTERNATIONAL SERIES TRUST
COMMONWEALTH REAL ESTATE SECURITIES FUND

SCHEDULE OF INVESTMENTS - OCTOBER 31, 2004
- --------------------------------------------------------------------------------

Principal Value
--------- -----

SHORT TERM INVESTMENTS (12.99%)
Fifth Third Bank Repurchase Agreement, 1.19%,
dated 10/29/04, due 11/01/04, repurchase price $214,961
(collateralized by FGLMC Pool# C78998,
due 05/01/33, market value $219,975) ........................... 214,940 $ 214,940
Fifth Third Institutional Government Money Market Fund, 1.35% ** 324,047 324,047
Fifth Third U.S. Treasury Money Market Fund, 1.23% ** .......... 324,046 324,046
-----------
TOTAL SHORT TERM INVESTMENTS (Cost $863,033) ................. 863,033
-----------
TOTAL INVESTMENTS (Cost $6,308,474) (102.54%) ................ $ 6,813,385
LIABILITIES IN EXCESS OF OTHER ASSETS,
NET (-2.54%) ............................................... (168,786)
-----------
NET ASSETS (100%) ............................................ $ 6,644,599
-----------

* Non-income producing investment

** Rate shown represents the rate at October 31, 2004, is subject to change
and resets daily.

ADR American Depository Receipt.

The accompanying notes are an integral part of these financial statements.

COMMONWEALTH INTERNATIONAL SERIES TRUST

STATEMENTS OF ASSETS AND LIABILITIES - October 31, 2004
- --------------------------------------------------------------------------------

Commonwealth Commonwealth
Australia/ Commonwealth Commonwealth Real Estate
New Zealand Fund Japan Fund Global Fund Securities Fund
---------------- ---------- ----------- ---------------

ASSETS:
Investments, at market (identified cost
$36,830,867, $7,486,232, $12,560,661
and $6,308,474 respectively) ......... $ 44,297,722 $ 8,213,835 $ 14,971,432 $ 6,813,385
Investments, in affiliated mutual funds
(identified cost $0, $0, $537,827 and
$0, respectively) .................... -- -- 647,630 --
Total Investments (identified cost
$36,830,867, $7,486,232, $13,098,488,
and $6,308,474, respectively)....... 44,297,722 8,213,835 15,619,062 6,813,385
------------ ------------ ------------ ------------
Foreign currency, at value (identified
cost $474,414, $91,780, $0 and $0,
respectively) ........................ 483,043 95,236 -- --
Receivables:
Dividends and interest ............... 172,626 2,503 12,500 11,491
Fund shares sold ..................... 114,260 50 10,020 --
Prepaid expenses ....................... 53,138 22,297 33,445 11,741
------------ ------------ ------------ ------------
Total assets ..................... 45,120,789 8,333,921 15,675,027 6,836,617
------------ ------------ ------------ ------------
LIABILITIES:
Payables:
Accrued 12b-1 fees ................... 4,086 16,943 2,175 2,941
Due to advisor ....................... 22,129 6,141 8,278 4,049
Due to custodian ..................... 1,694 553 254 127
Line of credit borrowing ............. -- 11,856 -- --
Fund shares redeemed ................. 334,393 414,380 -- --
Investments purchased ................ 1,617,798 -- 680,880 181,093
Accrued expenses ..................... 37,657 11,089 14,196 3,808
Covered call options written, at value
(premiums received $0, $0, $18,345
and $0, respectively) .............. -- -- 250 --
------------ ------------ ------------ ------------
Total liabilities ................ 2,017,757 460,962 706,033 192,018
------------ ------------ ------------ ------------
NET ASSETS ................................ $ 43,103,032 $ 7,872,959 $ 14,968,994 $ 6,644,599
============ ============ ============ ============
NET ASSET VALUE, OFFERING AND
REDEMPTION PRICE PER SHARE:
(2,629,142, 2,182,651, 1,077,497 and
630,497 shares of beneficial interest
outstanding, respectively, par value
.01, unlimited shares authorized) .... $ 16.39 $ 3.61 $ 13.89 $ 10.54
============ ============ ============ ============
SOURCE OF NET ASSETS:
Paid-in capital ........................ 31,046,104 7,471,475 11,909,989 6,124,623
Undistributed net investment income .... 1,080,704 -- -- 12,586
Accumulated net realized gain (loss) on
investments and foreign currency...... 3,498,797 (329,600) 520,337 2,479
Net unrealized appreciation on
investments and foreign currency...... 7,477,427 731,084 2,538,668 504,911
------------ ------------ ------------ ------------
$ 43,103,032 $ 7,872,959 $ 14,968,994 $ 6,644,599
============ ============ ============ ============

The accompanying notes are an integral part of the financial statements.

COMMONWEALTH INTERNATIONAL SERIES TRUST

STATEMENTS OF OPERATIONS For the Year Ended October 31, 2004
- --------------------------------------------------------------------------------

Commonwealth Commonwealth
Australia/ Commonwealth Commonwealth Real Estate
New Zealand Fund Japan Fund Global Fund Securities Fund
---------------- ---------- ----------- ---------------
For the Year For the Year For the Year For the Period
Ended Ended Ended Ended
October 31, October 31, October 31, October 31,
2004 2004 2004 2004*
---------------- ---------- ----------- ---------------

INVESTMENT INCOME:
Interest (net of foreign taxes withheld of $40,489, $0,
$0 and $0, respectively) ............................... $ 539,698 $ 12,264 $ 12,299 $ 5,122
Dividends (net of foreign taxes withheld of $217,067,
$2,720, $0, and $0, respectively) ...................... 1,017,946 47,553 176,179 119,097
Dividends from affiliated mutual funds ................. -- -- 12,789 --
----------- ----------- ----------- -----------
Total investment income ...................... 1,557,644 59,817 201,267 124,219
----------- ----------- ----------- -----------

EXPENSES:
Management fees ........................................ 257,326 63,340 83,950 24,477
Administration fees .................................... 71,004 71,000 70,092 49,000
Custodian fees ......................................... 82,559 11,442 8,661 3,030
Distribution fees ...................................... 85,775 21,113 27,940 8,159
Insurance .............................................. 40,648 11,923 14,080 9,447
Trustee fees and expenses .............................. 11,283 11,283 11,280 4,011
Audit fees ............................................. 26,022 5,608 10,789 2,257
Legal fees ............................................. 64,012 13,706 21,960 5,391
Registration fees ...................................... 23,598 17,820 23,753 538
Pricing fees ........................................... 11,716 10,334 6,244 1,742
Reports to shareholders ................................ 5,453 1,839 1,943 605
Interest expense ....................................... 17,269 14,517 747 --
Miscellaneous expense .................................. 23,372 9,278 10,167 4,779
----------- ----------- ----------- -----------
Total expenses ............................... 720,037 263,203 291,606 113,436
----------- ----------- ----------- -----------
Less: fees paid indirectly ................... (3,362) (3,830) (5,402) (1,803)
----------- ----------- ----------- -----------
Net expenses ................................. 716,675 259,373 286,204 111,633
----------- ----------- ----------- -----------
Net investment income (loss) ............. 840,969 (199,556) (84,937) 12,586
----------- ----------- ----------- -----------
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS AND
FOREIGN CURRENCY TRANSACTIONS:
Net realized gain (loss) on:
Investments, unaffiliated issuers ................ 3,927,788 627,521 596,715 2,479
Investments, affiliated mutual funds ............. -- -- 44,636
Option contracts written ......................... -- 14,603 31,201 --
Foreign currency transactions .................... (59,100) 13,906 -- --
Net change in unrealized appreciation (depreciation) on:
Investments, unaffiliated issuers ................ 1,979,425 (188,644) 1,183,904 504,911
Investments, affiliated mutual funds ............. -- -- 17,224
Foreign currency transactions .................... (6,978) 5,148 -- --
----------- ----------- ----------- -----------
Net gain on investments and foreign currency ........... 5,841,135 472,534 1,873,680 507,390
----------- ----------- ----------- -----------

Net increase in net assets resulting from operations ... $ 6,682,104 $ 272,978 $ 1,788,743 $ 519,976
=========== =========== =========== ===========

* The Commonwealth Real Estate Securities Fund commenced operations on
January 5, 2004.

The accompanying notes are an integral part of the financial statements.

COMMONWEALTH INTERNATIONAL SERIES TRUST

STATEMENTS OF CHANGES IN NET ASSETS
- --------------------------------------------------------------------------------

Commonwealth Australia/New Zealand Fund
----------------------------------------
For the Year For the Year
Ended Ended
October 31, 2004 October 31, 2003
---------------- ----------------

OPERATIONS:
Net investment income .............................. $ 840,969 $ 379,265
Net realized gain on:
Investments ................................. 3,927,788 1,068,339
Foreign currency transactions ............... (59,100) 161,853
Net change in unrealized appreciation (depreciation)
on investments and foreign currency ......... 1,972,447 5,228,839
------------ ------------
Net increase in net assets resulting
from operations ............................. 6,682,104 6,838,296
------------ ------------

Distributions to shareholders from:
Net investment income .............................. (654,367) --
Net realized gain .................................. (674,789) --
------------ ------------
Total Distributions ........................................ (1,329,156) --
------------ ------------

CAPITAL SHARE TRANSACTIONS:
Increase in net assets from Fund share transactions 4,714,332 19,333,561
------------ ------------

Increase in net assets ..................................... 10,067,280 26,171,857

NET ASSETS:
Beginning of year .................................. 33,035,752 6,863,895
------------ ------------
End of year ........................................ $ 43,103,032 $ 33,035,752
============ ============

Undistributed net investment income ........................ $ 1,080,704 $ 379,265
============ ============

Commonwealth Japan Fund
----------------------------------
For the Year For the Year
Ended Ended
October 31, 2004 October 31, 2003
---------------- ----------------

OPERATIONS:
Net investment loss ................................ $ (199,556) $ (198,972)
Net realized gain (loss) on:
Investments ................................. 642,124 (41,272)
Foreign currency transactions ............... 13,906 3,196
Net change in unrealized appreciation (depreciation)
on investments and foreign currency ......... (183,496) 1,452,925
----------- -----------
Net increase in net assets resulting
from operations ............................. 272,978 1,215,877
----------- -----------

CAPITAL SHARE TRANSACTIONS:
Increase in net assets from Fund share transactions 521,164 2,252,328
----------- -----------
Increase in net assets ............................. 794,142 3,468,205

NET ASSETS:
Beginning of year .................................. 7,078,817 3,610,612
----------- -----------
End of year ........................................ $ 7,872,959 $ 7,078,817
=========== ===========

The accompanying notes are an integral part of the financial statements.

COMMONWEALTH INTERNATIONAL SERIES TRUST

STATEMENTS OF CHANGES IN NET ASSETS
- --------------------------------------------------------------------------------

Commonwealth Global Fund
----------------------------------
For the Year For the Year
Ended Ended
October 31, 2004 October 31, 2003
---------------- ----------------

OPERATIONS:
Net investment loss ................................ $ (84,937) $ (111,613)
Net realized gain (loss) on:
Investments ................................. 672,552 (67,278)
Net change in unrealized appreciation (depreciation)
on investments .............................. 1,201,128 1,337,540
------------ ------------
Net increase in net assets resulting from operations ....... 1,788,743 1,158,649
------------ ------------

CAPITAL SHARE TRANSACTIONS:
Increase in net assets from Fund share transactions 3,762,390 8,259,212
------------ ------------
Increase in net assets ............................. 5,551,133 9,417,861

NET ASSETS:
Beginning of year .................................. 9,417,861 --
------------ ------------
End of year ........................................ $ 14,968,994 $ 9,417,861
============ ============

Commonwealth Real Estate Securities Fund
----------------------------------------
For the
Period Ended
October 31, 2004**
------------------

OPERATIONS:
Net investment income .............................. $ 12,586
Net realized gain on:
Investments ................................. 2,479
Net change in unrealized appreciation (depreciation)
on investments .............................. 504,911
----------
Net increase in net assets resulting from operations 519,976
----------
CAPITAL SHARE TRANSACTIONS:
Increase in net assets from Fund share transactions 6,124,623
----------
Increase in net assets ............................. 6,644,599
NET ASSETS:
Beginning of year .................................. --
----------
End of year ........................................ $6,644,599
==========
Undistributed net investment income ................ $ 12,586
==========

- ----------

* The Commonwealth Global Fund commenced operations on December 3, 2002.

** The Commonwealth Real Estate Securities Fund commenced operations on
January 5, 2004.

The accompanying notes are an integral part of the financial statements.

COMMONWEALTH INTERNATIONAL SERIES TRUST

STATEMENTS OF CASH FLOWS
- --------------------------------------------------------------------------------

Commonwealth Commonwealth
Australia/ New Zealand Fund Japan Fund
--------------------------- ----------------
For the Year For the Year
Ended Ended
October 31, 2004 October 31, 2004
---------------- ----------------

CASH FLOWS FROM OPERATING ACTIVITIES:
Net increase in net assets resulting from operations ........................ $ 6,682,104 $ 272,978
Adjustments to reconcile net increases in net assets from operations to
net cash used in operating activities:
Purchase of investment securities .................................... (15,660,433) (6,873,319)
Purchase of foreign currency ......................................... (25,615,334) (2,519,373)
Proceeds from sales of investment securities ......................... 19,011,986 5,776,161
Proceeds from sales of foreign currency .............................. 25,889,665 2,431,503
Purchase of short-term investments, net .............................. (9,009,013) (17,033)
Proceeds from return of capital dividends ............................ 13,894 --
Accretion of premium on debt securities, net ......................... 50,858 --
Net change in unrealized appreciation (depreciation) during the
period on investments and foreign currency .................... (1,972,447) 183,496
Net realized gain during the period on investments and
foreign currency .............................................. (3,868,688) (656,030)
Net realized gain (loss) on foreign currency translations ............ (53,218) 9,996
(Increase) decrease in:
Dividends and interest receivable ............................. (62,125) 12,286
Prepaid expenses .............................................. (15,637) (6,551)
Receivable for investments sold ............................... 280,402 110,157
Increase (decrease) in:
Accrued 12b-1 fees ............................................ (9,168) 11,270
Due to advisor ................................................ 3,595 1,314
Due to custodian .............................................. 1,694 553
Payable for investments purchased ............................. 366,071 --
Accrued expenses .............................................. (15,157) (5,818)
------------- -------------
Net cash used in operating activities ....................................... (3,980,951) (1,268,410)
------------- -------------
CASH FLOWS FROM FINANCING ACTIVITIES:
Increase in loan payable .................................................... -- 11,856
Proceeds from fund shares sold .............................................. 471,100,339 307,068,944
Payment for fund shares redeemed ............................................ (466,892,010) (305,812,390)
Cash distributions paid ..................................................... (227,378) --
------------- -------------
Net cash provided by financing activities ................................... 3,980,951 1,268,410
------------- -------------
Net increase (decrease) in cash ............................................. -- --
------------- -------------
CASH:
Beginning balance ........................................................... -- --
------------- -------------
Ending balance .............................................................. $ -- $ --
============= =============
Supplemental disclosure of cash flow information:
Interest paid ............................................................... $ 17,269 $ 14,517
============= =============

Non-cash financing activities not included herein consist of reinvestment of
dividend distributions of $1,101,778 and $0 for the Commonwealth Australia/New
Zealand and Commonwealth Japan Funds, respectively.

The accompanying notes are an integral part of these financial statements.

COMMONWEALTH INTERNATIONAL SERIES TRUST

FINANCIAL HIGHLIGHTS
- --------------------------------------------------------------------------------
The following tables set forth the per share operating performance data for a
share of capital stock outstanding, total return ratios to average net assets
and other supplemental data for each year or period indicated.

Commonwealth Australia/ New Zealand Fund
------------------------------------------------------------------
Years Ended October 31,
------------------------------------------------------------------
2004 2003 2002 2001 2000
---------- ---------- --------- --------- ---------

Net Asset Value, Beginning of Period .................. $ 14.44 $ 10.39 $ 8.53 $ 7.19 $ 9.27
---------- ---------- --------- --------- ---------
Investment Operations:
Net investment income (loss) ................... 0.26 0.17 (0.05) -- 0.03
Net realized and unrealized gain (loss) on
investments and foreign currency transactions 2.11 3.88 1.91 1.34 (2.05)
---------- ---------- --------- --------- ---------
Total from investment operations .......... 2.37 4.05 1.86 1.34 (2.02)
---------- ---------- --------- --------- ---------
Distributions from:
Net investment income .......................... (0.21) -- -- -- (0.06)
Net realized capital gains ..................... (0.21) -- -- -- --
---------- ---------- --------- --------- ---------
Total Distributions ....................... (0.42) -- -- -- (0.06)
---------- ---------- --------- --------- ---------
Net Asset Value, End of Period ........................ $ 16.39 $ 14.44 $ 10.39 $ 8.53 $ 7.19
========== ========== ========= ========= =========
Total Return .......................................... 16.70% 38.98% 21.81% 18.64% (21.98)%

Ratios/Supplemental Data
Net assets, end of period (in 000's) ........... $ 43,103 $ 33,036 $ 6,864 $ 4,534 $ 3,485
Ratio of expenses to average net assets ........ 2.10%(1) 2.53% 5.63% 5.74% 4.75%
Ratio of net investment income (loss) .......... 2.44%(1) 1.87% (0.56)% (0.18)% 0.39%
Portfolio turnover rate ........................ 55% 78% 28% 28% 15%

- -----------
(1) In accordance with a requirement of the Securities and Exchange
Commission, the ratios reflect total expenses prior to the reduction of
"fees paid indirectly". The ratios of expenses to average daily net assets
and net investment income to average daily net assets net of fees paid
indirectly would have been 2.09% and 2.45%, respectively for the year
ended October 31, 2004.

The accompanying notes are an integral part of the financial statements.

COMMONWEALTH INTERNATIONAL SERIES TRUST

FINANCIAL HIGHLIGHTS
- --------------------------------------------------------------------------------

The following tables set forth the per share operating performance data for a
share of capital stock outstanding, total return ratios to average net assets
and other supplemental data for each year or period indicated.

Commonwealth Japan Fund
------------------------------------------------------------------------
Years Ended October 31,
------------------------------------------------------------------------
2004 2003 2002 2001 2000
--------- --------- --------- --------- ---------

Net Asset Value, Beginning of Period .................. $ 3.98 $ 3.37 $ 4.12 $ 5.64 $ 6.88
--------- --------- --------- --------- ---------
Investment Operations:
Net investment loss ............................ (0.09) (0.11) (0.20) -- (0.14)
Net realized and unrealized gain (loss) on
investments and foreign currency transactions (0.28)(2) 0.72 (0.55) (1.52) (1.10)
--------- --------- --------- --------- ---------
Total from investment operations .......... (0.37) 0.61 (0.75) (1.52) (1.24)
--------- --------- --------- --------- ---------
Net Asset Value, End of Period ........................ $ 3.61 $ 3.98 $ 3.37 $ 4.12 $ 5.64
========= ========= ========= ========= =========
Total Return .......................................... (9.30)% 18.10% (18.20)% (26.95)% (18.02)%

Ratios/Supplemental Data
Net assets, end of period (in 000's) ........... $ 7,873 $ 7,079 $ 3,611 $ 3,408 $ 6,282
Ratio of expenses to average net assets ........ 3.13%(1) 4.78% 6.94% 5.57% 3.84%
Ratio of net investment loss ................... (2.42)%(1) (3.89)% (6.03)% (3.97)% (3.08)%
Portfolio turnover rate ........................ 77% 28% 5% 51% 14%

- -----------
(1) In accordance with a requirement of the Securities and Exchange
Commission, the ratios reflect total expenses prior to the reduction of
"fees paid indirectly". The ratios of expenses to average daily net assets
and net investment loss to average daily net assets net of fees paid
indirectly would have been 3.09% and (2.38)%, respectively for the year
ended October 31, 2004.

(2) As required by SEC standard per share data calculation methodology, this
represents a balancing figure derived from the other amounts in the
financial highlights table that captures all other changes affecting net
asset value per share. This per share loss amount does not correlate to
the aggregate of the net realized and unrealized gain and loss items in
the statement of operations, which net to a gain, primarily because of the
timing of sales and repurchases of the Fund's shares in relation to
fluctuating market values for the Fund's portfolio.

The accompanying notes are an integral part of the financial statements.

COMMONWEALTH INTERNATIONAL SERIES TRUST

FINANCIAL HIGHLIGHTS
- --------------------------------------------------------------------------------

Commonwealth Global Fund
---------------------------------------
For the Period For the Period
Ended Ended
October 31,2004 October 31,2003*
---------------------------------------

Net Asset Value, Beginning of Period ......... $ 11.99 $ 10.00
---------- ---------
Investment Operations:
Net investment loss ................... (0.08) (0.14)
Net realized and unrealized gain on
investments ........................ 1.98 2.13
---------- ---------
Total from investment operations . 1.90 1.99
---------- ---------
Net Asset Value, End of Period ............... $ 13.89 $ 11.99
========== =========
Total Return ................................. 15.85% 19.90%(2)

Ratios/Supplemental Data
Net assets, end of period (in 000's) .. $ 14,969 $ 9,418
Ratio of expenses to average net assets 2.45%(3) 4.62%(1)
Ratio of net investment loss .......... (0.76)(3) (2.96)(1)
Portfolio turnover rate ............... 44% 11%

- -----------
* The Commonwealth Global Fund commenced operations on December 3, 2002.

(1) Annualized

(2) Aggregate total return, not annualized

(3) In accordance with a requirement of the Securities and Exchange
Commission, the ratios reflect total expenses prior to the reduction of
"fees paid indirectly". The ratios of expenses to average daily net assets
and net investment loss to average daily net assets net of fees paid
indirectly would have been 2.40% and (0.71)%, respectively for the year
ended October 31, 2004.

The accompanying notes are an integral part of the financial statements.

COMMONWEALTH INTERNATIONAL SERIES TRUST

FINANCIAL HIGHLIGHTS
- --------------------------------------------------------------------------------

Commonwealth Real Estate Securities Fund
----------------------------------------
For the Period
Ended
October 31, 2004**
------------------

Net Asset Value, Beginning of Period ................. $ 10.00
---------
Investment Operations:
Net investment income ............................. 0.02
Net realized and unrealized gain
on investments ................................. 0.52
---------
Total from investment operations ......... 0.54
---------
Net Asset Value, End of Period ....................... $ 10.54
=========
Total Return ......................................... 5.40%(2)
Ratios/Supplemental Data
Net assets, end of period (in 000's) .............. $ 6,645
Ratio of expenses to average net assets ........... 3.45%(1,3)
Ratio of net investment income .................... 0.33%(1,3)
Portfolio turnover rate ........................... 3%

- -----------
** The Commonwealth Real Estate Securities Fund commenced operations on
January 5, 2004.

(1) Annualized

(2) Aggregate total return, not annualized

(3) In accordance with a requirement of the Securities and Exchange
Commission, the ratios reflect total expenses prior to the reduction of
"fees paid indirectly". The ratios of expenses to average daily net assets
and net investment income to average daily net assets net of fees paid
indirectly would have been 3.40% and 0.38%, respectively for the period
ended October 31, 2004.

The accompanying notes are an integral part of the financial statements.

COMMONWEALTH INTERNATIONAL SERIES TRUST

- --------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS - October 31, 2004
- --------------------------------------------------------------------------------

Note 1 - Organization

Commonwealth International Series Trust (the "Trust") is registered
under the Investment Company Act of 1940 (the "Act"), as a diversified open-end
management investment company. The Trust currently consists of four diversified
series: the Australia/New Zealand Fund, the Japan Fund, the Global Fund and the
Real Estate Securities Fund (each a "Fund" and collectively the "Funds"). The
Real Estate Securities Fund became effective with the SEC on November 21, 2003
and commenced operations on January 5, 2004.

Note 2 - Investment Objectives

The Australia/New Zealand Fund's investment objective is to seek
long-term capital appreciation and current income by investing in equity
securities, debt securities, and securities convertible into common stock of
Australia and New Zealand issuers.

The Japan Fund's investment objective is to seek long-term capital
appreciation and income by investing in equity securities, including common and
preferred stock, securities convertible into common stock, and debt securities
of Japanese issuers.

The Global Fund's investment objective is to seek long-term capital
appreciation and current income by investing in U.S. and foreign equity
securities, debt securities and securities convertible into common stock with a
general focus on established companies in countries with developed economies.

The Real Estate Securities Fund's investment objective is to seek
long-term capital appreciation and current income by investing in common stock
and other equity securities, including preferred stock and securities
convertible into common stock, and debt securities of real estate industry
companies.

Note 3 - Significant Accounting Policies

The following is a summary of significant accounting policies
consistently followed by the Funds in the preparation of its financial
statements. The policies are in conformity with accounting principles generally
accepted in the United States of America.

A) Valuation of Securities - Portfolio securities, including option securities,
which are traded on securities exchanges, are valued at the last sales price on
that exchange prior to the relevant closing or, if there is no recent last sales
price available, at the last current bid quotation. A security, which is listed
or traded on more than one exchange, is valued at the quotation on the exchange
determined to be the primary market for such security. Equity securities that
are traded on the NASDAQ National Market System, for which quotations are
readily available, are valued at the official closing price. Fixed income
securities are valued using market quotations or pricing services. Money Market
securities are stated at amortized cost, which in the opinion of the Board of
Trustees reflects fair value. In the absence of any applicable price, securities
will be valued at a fair value as determined in good faith in accordance with
procedures established by the Board of Trustees. For the period from November 1,
2003 through October 31, 2004, there was one instance where securities in the
Japan Fund were valued at fair value as determined by the Board of Trustees. The
one occurrence of using fair value pricing was a result of the Japanese Stock
Exchange having been closed during four consecutive U.S. trading days combined
with material events occurring subsequent to the close of the last trading day
in the Japanese market.

COMMONWEALTH INTERNATIONAL SERIES TRUST

- --------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS - October 31, 2004 (continued)
- --------------------------------------------------------------------------------

B) Currency Translation - For purposes of determining the Funds' net asset
value, all assets and liabilities initially expressed in foreign currency values
are converted into U.S. dollar values at the prevailing market rate on each U.S.
business day, as established by the Board of Trustees. The cost of securities is
determined by using historical exchange rates. Income is translated at
approximate rates prevailing when accrued. 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 the market prices of the investments.
Such fluctuations are included with the net realized and unrealized gains and
losses from investments.

C) Accounting for Investments - Security transactions are accounted for on the
trade date. Realized gains and losses on security transactions are based on the
identified cost basis for both financial statement and Federal income tax
purposes. Dividend income and distributions to shareholders are recorded on the
ex-dividend date. Discounts and premiums on bonds purchased are amortized over
the life of the bonds. Interest income and estimated expenses are accrued daily.

D) Federal Income Taxes - No provision has been made for Federal income taxes
since it is the policy of each Fund to continue to comply with the special
provisions of the Internal Revenue Code applicable to regulated investment
companies and to distribute all of its taxable income and realized capital
gains, to relieve it from all, or substantially all, such taxes. Dividends or
interest on foreign securities may be subject to the withholding of the country
of domicile's income tax by tax treaty provisions or otherwise. Generally there
are no foreign taxes applicable to the Funds' capital gains realized on foreign
securities in their country of domicile.

E) Distributions to Shareholders - The Funds distribute net investment income,
if any, and net realized gains (net of any capital loss carryovers) annually.
Income and capital gain distributions are determined in accordance with income
tax regulations which may differ from accounting principles generally accepted
in the United States of America. These differences are primarily due to
differing treatments for foreign currency transactions and capital loss
carryovers.

F) Option Accounting Principles - When a Fund sells an option, the premium
received is recorded as a liability. Each day the option contract liability is
valued in accordance with the procedures for security valuation discussed above.
When an offsetting option is purchased (a closing transaction) or the option
contract expires, the Fund realizes a gain or loss and the liability related to
such option contract is eliminated. When a call option is exercised, the Fund
realizes a gain or loss from the sale of the underlying security and the
proceeds of the sale are increased by the premiums originally received.

When a Fund purchases an option, the premium paid is recorded as an asset.
Each day the option contract is valued in accordance with the procedures for
security valuation discussed above. When an offsetting option is written (a
closing transaction) or the option contract expires, the Fund realizes a gain or
loss and the asset representing such option contract is eliminated. When a call
option is exercised, the Fund purchases the underlying security and the cost
basis of such purchase is increased by the premium originally paid.

COMMONWEALTH INTERNATIONAL SERIES TRUST

G) Forward Currency Contracts - Forward currency transactions are undertaken to
hedge against possible variations in the foreign exchange rates between the
United States Dollar and foreign currency. A forward currency contract is an
agreement between two parties to buy or sell a currency at a set price on a
future date. Forward contracts are marked-to-market daily and the change in the
market value is recorded by the Fund as an unrealized gain or loss. When a
contract is closed, the Fund records a realized gain or loss equal to the
difference between the value of the contract at the time it was opened and the
value at the time it was closed. The Funds could be exposed to risk if the
counter parties are unable to meet the terms of the contracts or if the value of
the currency changes unfavorably. The Funds entered into no forward currency
contracts during the year ended October 31, 2004.

H) Repurchase Agreements - In connection with transactions in repurchase
agreements, it is the Funds' policy that their custodian bank take possession of
the underlying collateral securities, the fair value of which must be equal to
the principal amount of the repurchase agreement including accrued interest
throughout the term of the repurchase agreement. If the seller defaults and the
fair value of the collateral declines realization of the collateral by the Funds
may be delayed or limited.

I) Use of Estimates - The preparation of the financial statements in conformity
with accounting principles generally accepted in the United States of America
requires management to make estimates and assumptions that affect the reported
amounts of assets and liabilities and the disclosure of contingent assets and
liabilities at the date of the financial statements and the reported amounts of
increases and decreases in net assets from operations during the reporting
period. Actual results could differ from those estimates.

Note 4 - Investment Advisory Fees, Administrative Fees and Other Transactions
with Affiliates

The Funds retain FCA Corp, ("FCA") as its Investment Adviser. Under the
Investment Advisory Agreement (the "Agreement"), the Adviser is paid a monthly
fee based on the average daily net assets at the annual rate of 0.75%. During
the year or period ended October 31, 2004, FCA received fees of $257,326,
$63,340, $83,950 and $24,477 from the Australia/New Zealand Fund, the Japan
Fund, the Global Fund and the Real Estate Securities Fund, respectively.
Officers of the Trust are also officers of FCA.

The Trust, on behalf of its series, has contracted with InCap Service
Company ("ISC") to perform specified administrative, accounting, and transfer
agent services for the Funds. For its services, ISC receives a monthly fee based
on the average daily net assets at the annual rate of 0.20% for the first $25
million in assets, 0.15% on the next $25 million, 0.10% on the next $50 million,
0.075% on the next $300 million and 0.03% on assets exceeding $400 million. The
Funds are subject to minimum fees of $5,917 per month for the Australia/New
Zealand Fund, the Japan Fund and the Global Fund and $5,000 per month for the
Real Estate Securities Fund. ISC is currently earning the minimum fees. During
the year or period ended October 31, 2004, ISC received fees of $71,004,
$71,000, $70,092, and $49,000 from the Australia/New Zealand Fund, the Japan
Fund, the Global Fund, and the Real Estate Securities Fund, respectively.
Officers of the Trust are also employees of ISC.

COMMONWEALTH INTERNATIONAL SERIES TRUST

InCap Securities, Inc. (the "Distributor"), an affiliate of the Transfer
Agent, serves as Distributor of the Funds' shares. For its services, the
Distributor receives a monthly fee of $1,667. The fees are allocated to the
Funds based on their respective percentage of the Trusts' collective average net
assets for each month. These fees are paid from accruals made with respect to
the Service and Distribution Plan pursuant to Rule 12b-1. For the year ended
October 31, 2004, the Distributor received fees of $20,000. Officers of the
Distributor are also officers of ISC.

The Funds have adopted a Service and Distribution Plan (the "Plan")
pursuant to Rule 12b-1 under the Act whereby Fund assets are used to reimburse
the Distributor for costs and expenses incurred with the distribution and
marketing of shares of the Funds and servicing of Fund shareholders.
Distribution and marketing expenses include, among other things, printing of
prospectuses, advertising literature, and costs of personnel involved with the
promotion and distribution of the Fund's shares. Under the Plan, the Fund pays
the Distributor an amount computed at an annual rate of up to 0.25% of the
Fund's average net assets (including reinvested dividends paid with respect to
those assets). Of this amount, the Distributor may reallocate to securities
dealers (which may include the Distributor itself) and other financial
institutions and organizations (collectively, "Service Organizations") amounts
based on the Fund's average net assets owned by stockholders for whom the
Service Organizations have a servicing relationship. For the year or period
ended October 31, 2004, the Australia/New Zealand Fund, the Japan Fund, the
Global Fund and the Real Estate Securities Fund incurred $85,775, $21,113,
$27,940, and $8,159, respectively in 12b-1 fees. Certain officers and trustees
of the Funds, who are also officers and directors of the Adviser, the
Administrator, or Distributor, received no compensation from the Funds. For the
year ended October 31, 2004, trustees of the Funds who are not "interested
persons" received trustees' fees of $44,400.

The Trust has entered into a Commission Recapture Agreement (the
"Agreement") with Fifth Third Bank (the Funds' custodian) and Fifth Third
Securities, Inc. (an affiliated broker/dealer of the custodian). Under the
Agreement, the Trust may recapture a portion of the commissions each Fund pays
to Fifth Third Securities, Inc. for the purpose of paying eligible expenses
incurred by the Funds. Recaptured amounts are based upon a rebate calculation
detailed in the Agreement. During the year or period ended October 31, 2004, the
Funds recaptured expenses of $3,362, $3,830, $5,402 and $1,803 for the
Australia/New Zealand Fund, the Japan Fund, the Global Fund and the Real Estate
Securities Fund, respectively. The recaptured amounts were applied to the
amounts due under a separate Custody Service Agreement with the custodian. The
custodian fees caption on the statement of operations and the expense ratios in
the financial highlights include the amounts that would have been incurred by
the Funds for such services had they paid for the services directly in
arms-length transactions. Such amounts are also shown as a corresponding
reduction in total expenses, captioned as "fees paid indirectly".

The Global Fund invests a portion of its assets in both the Australia/New
Zealand and Japan Funds. When computing both the Advisory fee and the 12b-1 fee
for the Global Fund, average daily net assets are reduced by Fund assets
invested in the Australia/ New Zealand Fund and the Japan Fund.

COMMONWEALTH INTERNATIONAL SERIES TRUST

Note 5 - Investments in Affiliates

The Global Fund invests in both the Australia/New Zealand Fund and the
Japan Fund. The Funds are considered to be affiliated under the Investment
Company Act of 1940 because they have the same Investment Adviser. Details of
the Global Fund's holdings in the Australia/New Zealand and Japan Funds and
related transactions during the year ended October 31, 2004 appear below.

Beginning Ending Dividend Market
shares Purchases Sales Shares Income* Value
------ --------- ----- ------ -------- --------

Australia/New Zealand Fund 16,874 14,581 -- 31,455 $ 12,789 $515,544
Japan Fund 104,366 -- 67,777 36,589 -- 132,086
-------- --------
Totals $ 12,789 $647,630
======== ========

* Dividends received were reinvested into the Australia/New Zealand Fund. The
Global Fund received 854 shares from the reinvested dividends.

Note 6 - Capital Stock

At October 31, 2004 there were shares outstanding of 2,629,142, 2,182,651,
1,077,497, and 630,497 for the Australia/New Zealand Fund, the Japan Fund, the
Global Fund, and the Real Estate Securities Fund, respectively. Transactions in
capital stock were as follows:

Commonwealth Australia/New Zealand Fund
-------------------------------------------------------------------------------------
Year Ended Year Ended
October 31, 2004 October 31, 2003
------------------------------------- -------------------------------------
SHARES DOLLARS SHARES DOLLARS
------------- ------------- ------------- -------------

Shares sold .............. 31,487,072 $ 470,812,285 21,722,143 $ 273,840,292
Shares reinvested ........ 74,344 1,101,778
Shares redeemed .......... (31,220,737) (467,199,731) (20,094,363) (254,506,731)
------------- ------------- ------------- -------------
Net Increase (Decrease) 340,679 $ 4,714,332 1,627,780 $ 19,333,561
============= ============= ============= =============

Commonwealth Japan Fund
-------------------------------------------------------------------------------------
Year Ended Year Ended
October 31, 2004 October 31, 2003
------------------------------------- -------------------------------------
SHARES DOLLARS SHARES DOLLARS
------------- ------------- ------------- -------------

Shares sold .............. 79,015,421 $ 306,633,994 40,234,402 $ 141,049,183
Shares redeemed .......... (78,612,553) (306,112,830) (39,524,827) (138,796,855)
------------- ------------- ------------- -------------
Net Increase (Decrease) 402,868 $ 521,164 709,575 $ 2,252,328
============= ============= ============= =============

COMMONWEALTH INTERNATIONAL SERIES TRUST

Commonwealth Global Fund
-------------------------------------------------------------------------------------
Year Ended Period Ended
October 31, 2004 October 31, 2003
------------------------------------- -------------------------------------
SHARES DOLLARS SHARES DOLLARS
------------- ------------- ------------- -------------

Shares sold .............. 3,021,196 $ 39,343,626 936,629 $ 9,898,108
Shares redeemed .......... (2,729,312) (35,581,236) (151,016) (1,638,896)
------------- ------------- ------------- -------------
Net Increase .......... 291,884 $ 3,762,390 785,613 $ 8,259,212
============= ============= ============= =============

Commonwealth Real Estate Securities Fund
----------------------------------------
Period Ended
October 31, 2004
-------------------------------------
SHARES DOLLARS
------------- -------------

Shares sold .............. 640,410 $ 6,224,940
Shares redeemed .......... (9,913) (100,317)
------------- -------------
Net Increase .......... 630,497 $ 6,124,623
============= =============

Note 7 - Purchases and Sales of Securities

Purchases and sales of investment securities (excluding short-term
securities) by the Funds for the year from November 1, 2003 to October 31, 2004
for the Australia/New Zealand Fund, the Japan Fund, and the Global Fund, and for
the period from January 5, 2004 to October 31, 2004 for the Real Estate
Securities Fund were as follows:

Purchases Sales
----------- -----------
Australia/New Zealand Fund $15,660,433 $19,011,986
Japan Fund ....................... 6,873,319 5,776,161
Global Fund ...................... 7,828,714 5,012,154
Real Estate Securities Fund ...... 5,551,182 108,221

COMMONWEALTH INTERNATIONAL SERIES TRUST

Note 8 - Options Written by the Japan Fund and the Global Fund

A call option gives the holder the right to buy the underlying stock from
the writer (the Funds) at a specified price within a fixed period of time.
Therefore, the securities held by the Funds against which options are written
may not be traded and are held in escrow by the custodian.

Written option activity for the year ended October 31, 2004 was as
follows:

Commonwealth Japan Fund
---------------------------
Number of Amount of
Options Premium
-------- ---------

Options outstanding at October 31, 2003 ................. 127 $14,603
Options written ......................................... -- --
-------- --------
Options expired ......................................... (127) (14,603)
Options covered ......................................... -- --
-------- --------
Options outstanding at October 31, 2004 ................. -- $ --
======== ========

Commonwealth Global Fund
---------------------------
Number of Amount of
Options Premium
-------- ---------

Options outstanding at October 31, 2003 .............. 178 $ 38,264
Options written ...................................... 105 26,839
Options expired ...................................... (186) (39,099)
Options covered ...................................... (47) (7,659)
-------- --------
Options outstanding at October 31, 2004 .............. 50 $ 18,345
======== ========

The aggregate market value at October 31, 2004 of securities subject to call
options is $104,350 or approximately 0.70% of net assets for the Global Fund.

Note 9 - Tax Matters

As of October 31, 2004, the components of distributable earnings on a tax
basis for the Funds were as follows:

Undistributed
Undistributed Long-Term Capital Capital Loss Unrealized Distributable
Ordinary Income Gains Carryforwards Appreciation Earnings
--------------- ----------------- ------------- ------------ -------------

Australia/New Zealand Fund $ 2,203,689 $ 2,375,812 $ -- $ 7,477,427 $12,056,928
Japan Fund ................ -- -- (328,303) 729,787 401,484
Global Fund ............... 276,742 247,748 -- 2,534,515 3,059,005
Real Estate Securities Fund 16,585 -- -- 503,391 519,976

COMMONWEALTH INTERNATIONAL SERIES TRUST

The difference between book basis and tax basis unrealized appreciation
(depreciation) is attributable primarily to the tax deferral of losses on wash
sales. The difference between book basis undistributed net investment income and
tax basis undistributed ordinary income is attributable primarily to differing
book/tax treatment of short term capital gains.

As of October 31, 2004, the Funds had capital loss carryforwards and loss
deferrals available for federal income tax purposes and utilized capital loss
carryforwards and losses previously deferred during the year or period ended
October 31, 2004 as follows:

Capital Loss Carryforwards
Expiring October 31, Carryforward and
---------------------------------------- Deferred Losses Deferred for
2006 2009 2011 Total Utilized Tax Purposes
-------- -------- -------- -------- ----------------- -------------

Australia/New Zealand Fund $ -- $ -- $ -- $ -- $ 16,907 $ --
Japan Fund .................. 22,502 261,843 43,958 328,303 643,421 1,297
Global Fund ................. -- -- -- -- 67,278 4,153
Real Estate Securities Fund.. -- -- -- -- -- 1,520

The losses deferred for tax purposes consist of losses deferred on wash
sales.

For U.S. federal income tax purposes, the cost of securities owned,
gross appreciation, gross depreciation and net unrealized
appreciation/(depreciation) of investments at October 31, 2004 for each fund:

Gross Gross Net
Cost Appreciation Depreciation Appreciation
----------- ------------ ------------ ------------

Australia/New Zealand Fund $36,830,867 $ 7,547,324 $ (80,469) $ 7,466,855
Japan Fund .................. 7,487,529 981,024 (254,718) 726,306
Global Fund ................. 13,084,296 2,707,764 (173,249) 2,534,515
Real Estate Securities Fund.. 6,309,994 536,266 (32,875) 503,391

The tax character of distributions paid for the year ended October 31,
2004 and for the year ended October 31, 2003 were as follows:

October 31, 2004
---------------------------------------------------------
Long Term Total Distributions
Ordinary Income Capital Gains Paid
--------------- ------------- --------------------

Australia/New Zealand Fund... $1,329,156 $ -- $1,329,156

There were no distributions paid for the Japan Fund, the Global Fund or
the Real Estate Securities Fund during the year or period ended October 31,
2004.

There were no distributions paid for the Australia/New Zealand Fund,
the Japan Fund, or the Global Fund during the year or period ended October 31,
2003.

COMMONWEALTH INTERNATIONAL SERIES TRUST

Note 10 - Revolving Credit Agreement

The Trust has entered into a Revolving Credit Agreement with Fifth
Third Bank (the "Bank"). Pursuant to the terms of the Agreement, the Bank
extends to the Trust, a line of credit facility under which the Bank may make
loans to the Trust on behalf of the Funds from time to time in an amount up to
$10,000,000 as a temporary measure for extraordinary or emergency purposes based
on instructions received from any authorized representative of the Trust. The
Trust shall not at any time incur borrowings with respect to the Funds such that
the aggregate loans then outstanding under this line of credit facility would
exceed $10,000,000. Any principal balance outstanding shall bear interest at the
Federal Funds Rate of the Bank in effect at that time. As of October 31, 2004,
the Japan Fund had $11,856 of outstanding loans with an interest rate of 3.35%
and a due date of November 1, 2004. There were no loans outstanding for the
Australia/New Zealand Fund, Global Fund and the Real Estate Securities Fund as
of October 31, 2004. The average amount of borrowings and the average interest
rate on those borrowings by the Trust during the year ended October 31, 2004
were as follows:

Average Average
Principal Interest Rate
----------- -------------
Australia/New Zealand Fund ............. $ 1,272,939 1.37%
Japan Fund ............................. 847,286 1.73%
Global Fund ............................ 19,821 2.68%

There were no loans made to the Real Estate Securities Fund during the
period ended October 31, 2004.

Note 11 - Reclass of Capital Accounts

In accordance with accounting pronouncements, the Australia/New
Zealand, Japan and Global Funds have recorded reclassifications in the capital
accounts. These reclassifications have no impact on the net asset value of the
Funds and are designed generally to present undistributed net investment income
and accumulated net realized gain (loss) on a tax basis which is considered to
be more informative to the shareholder. As of October 31, 2004, the Funds
recorded the following reclassifications to increase (decrease) the capital
accounts listed below:

Undistributed Net Net Realized Gain
Investment Income (Accumulated Losses) Paid-in Capital
----------------- -------------------- ---------------

Australia/New Zealand Fund... $ 514,837 $(514,837) $ --
Japan Fund .................. 199,556 (13,906) (185,650)
Global Fund ................. 84,937 (84,937) --

COMMONWEALTH INTERNATIONAL SERIES TRUST

Note 12 - Subsequent Event

The Funds declared the following dividends and realized gain
distributions per share on December 28, 2004, payable on December 29, 2004 to
shareholders of record as of December 28, 2004.

Dividends from Net Distributions from
Investment Income Realized Gains
------------------ -------------------
Australia/New Zealand Fund .... $ 0.481 $ 1.244
Global Fund ................... -- 0.447
Real Estate Securities Fund ... 0.065 0.006

Note 13 - Contingencies and Commitments

In the normal course of business, the Funds enter into contracts that
contain various representations and warrantees and provide general
indemnifications. The Funds' maximum exposure under these arrangements is
dependent on future claims against the Funds and is presently unknown. However,
based on experience, the Funds consider the risk of loss from such potential
claims to be remote.

COMMONWEALTH INTERNATIONAL SERIES TRUST

REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM
- --------------------------------------------------------------------------------

To the Shareholders and Board of Trustees of
Commonwealth International Series Trust
Houston, Texas

We have audited the statements of assets and liabilities of Commonwealth
Australia/New Zealand Fund, Commonwealth Japan Fund, Commonwealth Global Fund
and Commonwealth Real Estate Securities Fund, each a series of shares of
beneficial interest of Commonwealth International Series Trust, including the
schedules of investments, as of October 31, 2004, and the related statements of
operations for each series for the year or period then ended, the statements of
changes in net assets for each series for each of the years or periods in the
two year period then ended, the statements of cash flows for the Commonwealth
Australia/New Zealand Fund and Commonwealth Japan Fund for the year then ended
and the financial highlights for each series for the periods indicated therein.
These financial statements and financial highlights are the responsibility of
the Trust's management. Our responsibility is to express an opinion on these
financial statements and financial highlights based on our audits.

We conducted our audits in accordance with the standards of the Public Company
Accounting Oversight Board (United States). Those standards require that we plan
and perform the audit to obtain reasonable assurance about whether the financial
statements and financial highlights 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 October 31, 2004 by correspondence with the custodian and
brokers. 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
Commonwealth Australia/New Zealand Fund, Commonwealth Japan Fund, Commonwealth
Global Fund and Commonwealth Real Estate Securities Fund as of October 31, 2004,
the results of the operations of each series for the year or period then ended,
the changes in the net assets of each series for each of the years or periods in
the two year period then ended, the results of the cash flows of the
Commonwealth Australia/New Zealand Fund and Commonwealth Japan Fund for the year
then ended and the financial highlights of each series for the periods indicated
therein in conformity with accounting principles generally accepted in the
United States of America.

BRIGGS, BUNTING & DOUGHERTY, LLP
Philadelphia, Pennsylvania
December 28, 2004

COMMONWEALTH INTERNATIONAL SERIES TRUST

TRUSTEES AND OFFICERS (Unaudited)
- --------------------------------------------------------------------------------

- ------------------------------------------------------------------------------------------------------------------------
Number of
Portfolios in Other
Term of Complex Directorships
Office and Overseen by Held By
Position(s) Length of Principal Occupation(s) for Trustee/ Trustee/
Name, Age and Address With Fund Time Served the Last Five Years Officer Officer
- ------------------------------------------------------------------------------------------------------------------------
INTERESTED TRUSTEES:

- ------------------------------------------------------------------------------------------------------------------------
Robert Scharar(1), 56 President, Indefinite Investment manager/Attorney/CPA; 4 United
5847 San Felipe Interested until President, FCA Corp. Dominion
Suite 850 Trustee successor Realty Trust
Houston, TX 77057 elected and
qualified; 4
years.
- ------------------------------------------------------------------------------------------------------------------------
INDEPENDENT TRUSTEES:
- ------------------------------------------------------------------------------------------------------------------------
John Akard, Jr., 38 Independent Indefinite Attorney/CPA 4 None
5847 San Felipe Trustee until
Suite 850 successor
Houston, TX 77057 elected and
qualified; 4
years.
- ------------------------------------------------------------------------------------------------------------------------
Kathleen Kelly, 52 Independent Indefinite Consultant 4 None
5847 San Felipe Trustee until
Suite 850 successor
Houston, TX 77057 elected and
qualified; 4
years.
- ------------------------------------------------------------------------------------------------------------------------
Jack Ewing, 64 Independent Indefinite Professor 4 None
5847 San Felipe Trustee until
Suite 850 successor
Houston, TX 77057 elected and
qualified; 4
years.
- ------------------------------------------------------------------------------------------------------------------------

(1) Robert Scharar is considered an "interested person" of the Funds' because
of his affiliation with the Fund's Investment Advisor as the sole
shareholder of that Advisor.

COMMONWEALTH INTERNATIONAL SERIES TRUST

TRUSTEES AND OFFICERS (Unaudited) (continued)
- --------------------------------------------------------------------------------

- -------------------------------------------------------------------------------------------------------------------------------
Number of
Portfolios in Other
Term of Complex Directorships
Office and Overseen by Held By
Position(s) Length of Principal Occupation(s) for Trustee/ Trustee/
Name, Age and Address With Fund Time Served the Last Five Years Officer Officer
- -------------------------------------------------------------------------------------------------------------------------------
OFFICERS:

- -------------------------------------------------------------------------------------------------------------------------------
Larry E. Beaver, Jr., 35 Treasurer 2003-current Manager Fund Accounting, InCap 4 None
630-A Fitzwatertown Rd. Service Co., May 2003 to present;
Willow Grove, PA 19090 Supervisor Fund Accounting, InCap
Service Co., October 2001 to
April 2003; Accountant, PFPC,
Inc., March 1998 to September
2001.
- -------------------------------------------------------------------------------------------------------------------------------
Charles R. Ropka, 41 Secretary 2003-current Attorney, Rabil & Ropka, LLC 4 None
1010 Kings Hwy. S.
Building 2, Suite B
Cherry Hill, NJ 08034
- -------------------------------------------------------------------------------------------------------------------------------
David F. Ganley, 56 Assistant 2003-current Managing Director, InCap Group, Inc.; 4 Officer,
630-A Fitzwatertown Rd. Secretary Chief Admin. Officer, InCap Service Co.; Capstone
Willow Grove, PA 19090 President & Treasurer, InCap Securities, Funds
Inc.
- -------------------------------------------------------------------------------------------------------------------------------
Bonnie Bingham, 55 Assistant 2003-current Administrator & Private Coordinator, 4 None
5847 San Felipe Secretary FCA Corp.
Suite 850
Houston, TX 77057
- -------------------------------------------------------------------------------------------------------------------------------

The Funds file its complete schedule of portfolio holdings with the Securities
and Exchange Commission (the "Commission") for the first and third quarters of
each fiscal year on Form N-Q. The Funds' Forms N-Q are available on the
Commission's website at http://www.sec.gov. The Funds' Forms N-Q may be reviewed
and copied at the Commission's Public Reference Room in Washington, DC.
Information on the operation of the Commission's Public Reference Room may be
obtained by calling 1-800-SEC-0330.

A description of the policies and procedures that the Funds use to determine how
to vote proxies relating to portfolio securities is available without charge,
upon request, by calling 888-345-1898; and on the Commission's website at
http://www.sec.gov.

Information regarding how the Fund voted proxies relating to portfolio
securities during the most recent 12-month period ended December 31, 2004 is
available without charge, upon request, by calling 888-345-1898; and on the
Commission's website at http://www.sec.gov.

Commonwealth International
Series Trust

5847 San Felipe, Suite 850
Houston, Texas 77057
1-888-345-1898

INVESTMENT ADVISOR
FCA Corp.
5847 San Felipe, Suite 850
Houston, TX 77057
1-703-781-2856
www.fcacorp.com

ADMINISTRATOR & TRANSFER AGENT

InCap Service Company
630-A Fitzwatertown Road
Willow Grove, PA 19090-1904

DISTRIBUTOR

InCap Securities, Inc.
630-A Fitzwatertown Road
Willow Grove, PA 19090-1904

CUSTODIAN BANK

Fifth Third Bank
Fifth Third Center
38 Fountain Square Plaza
Cincinnati, OH 45263

INDEPENDENT AUDITORS

Briggs, Bunting & Dougherty, LLP
Two Penn Center Plaza, Suite 820
Philadelphia, PA 19102-1732

LEGAL COUNSEL

Rabil & Ropka, LLC
1010 Kings Highway, South
Building Two, Suite B
Cherry Hill, NJ 08034

ITEM 2. CODE OF ETHICS.
A copy of the Code of Ethics is available free of charge, upon
request, by contacting the fund directly.

ITEM 3. AUDIT COMMITTEE FINANCIAL EXPERT.
The fund's financial expert is John Akard, Jr. and he is independent.

ITEM 4. PRINCIPAL ACCOUNTANT FEES AND SERVICES.
Commonwealth International Series Trust

2003 2004
--------------------------
A Audit Fees 31,815 45,155
B Audit Related Fees -- --
C Tax Fees 4,500 6,000
D All Other Fees -- --

E Commonwealth International Series Trust does have pre-approval policies
and procedures. 100% of service described in b through d were pre-approved
by the audit committee

F Not applicable - All work performed by BBD's principal employees

G Not applicable

H Not applicable

ITEM 5. AUDIT COMMITTEE OF LISTED REGISTRANTS.
Not applicable

ITEM 6. SCHEDULE OF INVESTMENTS
Not applicable

ITEM 7. DISCLOSURE OF PROXY VOTING POLICIES AND PROCEDURES FOR CLOSED-END
MANAGEMENT INVESTMENT COMPANIES.
Not applicable Fund is an open-end management investment company

ITEM 8. PORTFOLIO MANAGERS OF CLOSED-END MANAGEMENT INVESTMENT COMPANIES.
Not applicable Fund is an open-end management investment company.

ITEM 9. PURCHASES OF EQUITY SECURITIES BY CLOSED-END MANAGEMENT INVESTMENT
COMPANY AND AFFILIATED PURCHASERS.
Not applicable

ITEM 10. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS
None

ITEM 11. CONTROLS AND PROCEDURES.
(a)The registrant's principal executive officer and principal
financial officer has concluded that the registrant's disclosure
controls and procedures (as defined in rule 30a-2(c) under the
Investment Company Act of 1940, as amended (the "1940 Act")) are
effective based on their evaluation of these controls and procedures
as of a date within 90 days of the filing date of this document.

(b)There were no significant changes in the registrant's internal
controls or in other factors that could affect these controls
subsequent to the date of their evaluation, including any corrective
actions with regard to significant deficiencies and material
weaknesses.

ITEM 12. EXHIBITS
(1) Certifications pursuant to Section 302 of the Sarbanes-Oxley Act
of 2002 are filed herewith.

(2) Certifications pursuant to Section 906 of the Sarbanes-Oxley Act
of 2002 are filed herewith.

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.

Commonwealth International Series Trust

By /s/ Robert W. Scharar
-------------------------------------
Robert W. Scharar
President

Date February 1, 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 /s/ Robert W. Scharar
-------------------------------------
Robert W. Scharar
President

Date February 1, 2005

By /s/ Larry E. Beaver, Jr.
-------------------------------------
Larry E. Beaver, Jr.
Treasurer

Date February 1, 2005