Interim Report Part 1

Siam Investment Fund
24 December 2002


                              SIAM INVESTMENT FUND

                               PRESIDENT'S REPORT

After rallying 60% between November 2001 and June 2002, the Thai market has
dropped close to 20% since then. External issues such as the Iraq tensions,
corporate scandals in the U.S., worries of a double dip recession all conspired
to drag the market down over the past six months. Despite this, Thailand
continues to quietly impress with economic growth forecasts continuously being
upgraded over the course of the year. Current estimates call for full year GDP
growth to be 4-4.5% up from 2% at the start of the year.

For the past six months, the fund's NAV declined by roughly 8.25%
vs. a decline of 10% in the dollar denominated SET Index. The principal drag on
the fund's performance continues to be the shares in Toronto listed Asia Pacific
Resources. The fund converted its debenture into shares at C$.20 per share and
the price has now dropped to C$.08-. 09. During the past six months, the Fund
has continued to reduce its holdings in SEED, Nation and TISCO in line with the
strategy communicated to shareholders last year. Purchases include Sansiri,
Advanced Information Services, BEC World, Makro, PTT and Bangkok Bank.

Going forward the fund will continue to seek positions in companies
which provide expected absolute returns vs. relative performance. We do see
scope for the market to trend higher into 2003 and the domestic consumption
story remains the driver of activity in the Thai economy. Low interest rates
should continue to support the property sector as well as the automobile
industry and each of these generate significant ripple effects throughout the
economy and the stock market. Given this, the fund will maintain full investment
status with a view to paying a dividend in 2003.



Gene Davis
November 25, 2002







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