INTERNATIONAL EQUITY PORTFOLIO
PORTFOLIO OF INVESTMENTS
April 30, 2000
(expressed in U.S. Dollars)
(unaudited)
Shares Value
------- -----------
COMMON STOCKS & WARRANTS (98.8%)
AUSTRALIA (2.0%)
BANKING
47,000 National Australia Bank, Ltd. ........................ $ 643,930
------------
CONSUMER GOODS
173,300 Coca-Cola Amatil, Ltd. ............................... 414,342
------------
SERVICES
40,000 Lend Lease Corp. ..................................... 433,468
500,000 Pasminco, Ltd.* ...................................... 262,800
------------
696,268
------------
TELECOMMUNICATIONS
210,000 Cable and Wireless Optus* ............................ 678,199
------------
TOTAL AUSTRALIA ...................................... 2,432,739
------------
FINLAND (4.2%)
MULTI-INDUSTRY
91,500 Nokia AB ............................................. 5,244,666
------------
FRANCE (12.2%)
BANKING
30,400 Banque National de Paris CI .......................... 2,456,897
------------
CAPITAL EQUIPMENT
6,885 Alcatel Alsthom SA ................................... 1,596,084
------------
ENERGY
21,835 Total Fina SA ........................................ 3,312,998
------------
MEDIA
4,460 Canal Plus ........................................... 859,572
------------
PHARMACEUTICALS
49,100 Aventis SA ........................................... 2,700,527
------------
SERVICES
52,600 Accor SA ............................................. 1,953,392
14,500 Suez Lyonnaise Des Eaux .............................. 2,273,886
------------
4,227,278
------------
TOTAL FRANCE ......................................... 15,153,356
------------
GERMANY (6.1%)
BANKING
23,710 Deutsche Pfandbrief-und
Hypothekenbank AG .................................. 2,435,688
------------
CAPITAL EQUIPMENT
46,900 SAP AG ADR ........................................... 2,303,963
------------
INSURANCE
7,332 Allianz AG Registered ................................ 2,822,848
------------
TOTAL GERMANY ........................................ 7,562,499
------------
HONG KONG (2.1%)
MULTI-INDUSTRY
64,000 Hutchinson Whampoa, Ltd. ............................. 932,573
142,600 Li & Fung, Ltd.* ..................................... 551,053
------------
1,483,626
------------
TELECOMMUNICATIONS
162,000 China Telecom* ....................................... 1,169,889
------------
TOTAL HONG KONG ...................................... 2,653,515
------------
INDIA (0.0%)
FINANCE
550 Industrial Credit & Investment Corp. ................. 1,680
------------
IRELAND (2.5%)
BANKING
183,900 Allied Irish Banks, Plc. ............................. 1,835,675
------------
PHARMACEUTICALS
30,000 Elan Corp., Plc. ADR* ................................ 1,286,250
------------
TOTAL IRELAND ........................................ 3,121,925
------------
ITALY (6.6%)
FINANCE
21,000 Banca Fideuram SpA ................................... 312,598
18,000 Mediolanum SpA ....................................... 298,116
------------
610,714
------------
INSURANCE
94,300 Assicurazioni Generali ............................... 2,675,575
------------
TELECOMMUNICATIONS
228,100 Telecom Italia Mobile SpA ............................ 2,178,377
198,700 Telecom Italia SpA ................................... 2,779,660
------------
4,958,037
------------
TOTAL ITALY .......................................... 8,244,326
------------
<PAGE>
INTERNATIONAL EQUITY PORTFOLIO
PORTFOLIO OF INVESTMENTS (continued)
April 30, 2000
(expressed in U.S. Dollars)
(unaudited)
Shares Value
------- -----------
JAPAN (22.1%)
BANKING
150,000 Asahi Bank, Ltd. ..................................... $ 722,122
125,000 Dai Ichi Kangyo Bank ................................. 1,036,893
38,000 Sumitomo Trust and
Banking Co., Ltd. .................................. 475,286
------------
2,234,301
------------
CAPITAL EQUIPMENT
26,000 Fujitsu, Ltd. ........................................ 736,564
------------
CAPITAL GOODS/DURABLES
40,000 Matsushita Electric Industrial
Co., Ltd. .......................................... 1,059,112
160 Matsushita Electric Industrial
Co., Ltd. (Warrants)* .............................. 240,000
55,000 Matsushita Electric Works ............................ 610,517
290 Matsushita Electric Works
(Warrants)* ........................................ 54,375
------------
1,964,004
------------
CHEMICALS
14,000 Shin-Etsu Chemical Co. ............................... 740,082
100 Shin-Etsu Chemical Co.
(Warrants)* ........................................ 155,000
------------
895,082
------------
CONSUMER ELECTRONICS
4,000 Sony Corp. ........................................... 459,566
3,000 Sony Corp. (New) ..................................... 347,174
50 Sony Corp. (Warrants)* ............................... 116,875
------------
923,615
------------
CONSUMER GOODS
46,000 Kirin Brewery Co., Ltd. .............................. 599,195
141,000 Nissan Motor Co. ..................................... 640,939
38,000 Suzuki Motor Corp. ................................... 566,051
15,000 Toyota Motor Co. ..................................... 745,730
------------
2,551,915
------------
CONSUMER NON-DURABLES
5,500 Nintendo Co., Ltd. ................................... 916,539
------------
ELECTRIC COMPONENTS
4,000 Matsushita Communications
Industrial Co., Ltd. ............................... 627,320
2,400 Rohm Co., Ltd. ....................................... 804,333
------------
1,431,653
------------
FINANCE
8,400 Orix Corp. ........................................... 1,199,167
------------
INSURANCE
88,000 Mitsui Marine & Fire Insurance ....................... 386,983
------------
MACHINERY/EQUIPMENT
110,000 Mitsubishi Heavy Industries .......................... 342,175
------------
MATERIALS
250,000 Kawasaki Steel Corp. ................................. 388,835
90,000 Kinden Corp. ......................................... 561,589
160,000 Mitsubishi Materials Corp. ........................... 533,259
210,000 Sumitomo Metal & Mining Co. .......................... 643,522
------------
2,127,205
------------
MULTI-INDUSTRY
20 Prospect Japan Fund* ................................. 182
2,000 Shohkoh Fund & Co. ................................... 357,358
1,500 Softbank Corp. ....................................... 369,393
3,000 Softbank Corp. (New) ................................. 738,786
70,000 Sumitomo Corp. ....................................... 784,150
------------
2,249,869
------------
PHARMACEUTICALS
40,000 Kissei Pharmaceutical Co., Ltd. ...................... 655,835
23,000 Sankyo Co., Ltd. ..................................... 506,781
225,000 Sankyo Co., Ltd. (Warrants)* ......................... 35,227
32,000 Santen Pharmaceutical Co., Ltd. ...................... 708,050
12,000 Yamanouchi Pharmaceutical
Co., Ltd. .......................................... 634,356
120 Yamanouchi Pharmaceutical
Co., Ltd. (Warrants)* .............................. 303,750
------------
2,843,999
------------
PRECISION INSTRUMENTS
8,000 Hoya Corp. ........................................... 814,702
------------
REAL ESTATE
10,000 Oriental Land Co., Ltd. .............................. 1,061,890
------------
RETAIL
9,000 Ito-Yokado Co., Ltd. ................................. 657,409
------------
<PAGE>
INTERNATIONAL EQUITY PORTFOLIO
PORTFOLIO OF INVESTMENTS (continued)
April 30, 2000
(expressed in U.S. Dollars)
(unaudited)
Shares Value
------- -----------
SERVICES
3,800 Benesse Corp. ........................................ $ 331,750
3,800 Benesse Corp. (New) .................................. 347,581
30,700 Credit Saison Co., Ltd. .............................. 501,648
23,000 Daikin Industries, Ltd. .............................. 437,578
320,000 Kawasaki Kisen Kaisha, Ltd. .......................... 494,746
60,000 Toei Co. ............................................. 422,164
------------
2,535,467
------------
TECHNOLOGY
4,300 Internet Initiative Japan,
Inc. ADR* .......................................... 258,000
------------
TELECOMMUNICATIONS
58 Nippon Telegraph & Telephone ......................... 719,530
------------
TRANSPORTATION
110,000 Nippon Express Co. ................................... 694,533
------------
TOTAL JAPAN .......................................... 27,544,602
------------
NETHERLANDS (2.5%)
CONSUMER GOODS
31,637 Heineken NV .......................................... 1,754,433
------------
FINANCE
52,400 Fortis Amev NV ....................................... 1,317,635
------------
TOTAL NETHERLANDS .................................... 3,072,068
------------
SINGAPORE (2.6%)
BANKING
60,476 DBS Group Holdings, Ltd.* ............................ 832,807
------------
ELECTRIC COMPONENTS
10,000 Chartered Semiconductors ADR* ........................ 873,750
------------
SERVICES
49,000 Singapore Airlines ................................... 508,233
------------
TELECOMMUNICATIONS
90,000 Datacraft Asia, Ltd.* ................................ 675,000
270,000 Singapore Telecom .................................... 389,218
------------
1,064,218
------------
TOTAL SINGAPORE ...................................... 3,279,008
------------
SOUTH KOREA (2.5%)
ELECTRIC COMPONENTS
12,000 Samsung Electronics, Ltd., GDR* ...................... 1,935,000
------------
MATERIALS
30,200 Pohang Iron & Steel Ltd., ADR ........................ 634,200
------------
TELECOMMUNICATIONS
15,750 SK Telecom, Ltd. ..................................... 504,984
------------
TOTAL SOUTH KOREA .................................... 3,074,184
------------
SPAIN (6.1%)
BANKING
234,922 Banco Santander SA ................................... 2,449,620
190,350 Banco Bilbao Vizcaya SA .............................. 2,595,708
------------
5,045,328
------------
TELECOMMUNICATIONS
113,203 Telefonica CA* ....................................... 2,519,306
------------
TOTAL SPAIN .......................................... 7,564,634
------------
SWEDEN (4.6%)
CAPITAL EQUIPMENT
56,720 Atlas Copco AB ....................................... 1,325,322
32,100 Ericsson (LM) Telephone Co.
Class 'B' .......................................... 2,853,413
------------
4,178,735
------------
CONSUMER DURABLES
93,100 Electrolux AB ........................................ 1,573,126
------------
TOTAL SWEDEN ......................................... 5,751,861
------------
SWITZERLAND (2.5%)
PHARMACEUTICALS
2,237 Novartis AG Registered ............................... 3,110,566
------------
UNITED KINGDOM (20.4%)
BASIC MATERIALS
97,000 Rio Tinto, Plc. ...................................... 1,510,242
------------
ENERGY
337,400 BP Amoco, Plc. ....................................... 2,912,873
108,000 British Energy, Plc. ................................. 289,219
294,000 Shell Transport & Trading
Co., Plc. .......................................... 2,391,710
------------
5,593,802
------------
FOOD & BEVERAGES
233,000 Diageo, Plc. ......................................... 1,884,588
------------
INSURANCE
104,500 Prudential Corp. ..................................... 1,604,236
------------
<PAGE>
INTERNATIONAL EQUITY PORTFOLIO
PORTFOLIO OF INVESTMENTS (continued)
April 30, 2000
(expressed in U.S. Dollars)
(unaudited)
Shares Value
------- -----------
MEDIA
88,500 Pearson, Plc. ........................................ $ 3,046,540
------------
PHARMACEUTICALS
117,700 Glaxo Wellcome, Plc. ................................. 3,630,244
------------
REAL ESTATE
93,700 British Land Co., Plc. (The) ......................... 624,029
------------
SERVICES
105,000 BAA, Plc.* ........................................... 678,033
368,000 British Airways ...................................... 1,925,139
153,180 Granada Group, Plc. .................................. 1,492,971
------------
4,096,143
------------
TELECOMMUNICATIONS
191,800 British Telecom, Plc. ................................ 3,437,153
------------
TOTAL UNITED KINGDOM ................................. 25,426,977
------------
TOTAL COMMON STOCKS
& WARRANTS ......................................... 123,238,606
------------
Principal
Amount Value
--------- -----------
TIME DEPOSIT (1.0%)
1,190,000 State Street Bank Time Deposit ....................... 1,190,000
------------
TOTAL INVESTMENTS (identified cost $106,692,059) (a) ... 99.8% $124,428,606
CASH AND OTHER ASSETS IN EXCESS OF LIABILITIES ......... 0.2 311,686
----- ------------
NET ASSETS ............................................. 100.0% $124,740,292
===== ============
-----------
* non-income producing security
(a) The aggregate cost for federal income tax purposes is $106,692,059, the
aggregate gross unrealized appreciation is $23,558,069 and the aggregate
gross unrealized depreciation is $5,821,522, resulting in net unrealized
appreciation of $17,736,547.
See Notes to Financial Statements.
<PAGE>
INTERNATIONAL EQUITY PORTFOLIO
STATEMENT OF ASSETS AND LIABILITIES
April 30, 2000
(expressed in U.S. dollars)
(unaudited)
ASSETS:
Investments in securities, at value (identified
cost $106,692,059) (Note 1) ......................... $124,428,606
Cash (including $58,509 in foreign currency) ........... 59,101
Receivables for:
Investments sold .................................... 2,623,726
Contributions ....................................... 315,000
Dividends and other receivables ........................ 301,576
------------
Total Assets ..................................... 127,728,009
============
LIABILITIES:
Payables for:
Investments purchased ............................... 2,760,401
Withdraws ........................................... 81,610
Administration fee (Note 2) ......................... 3,592
Expense reimbursement fee (Note 2) .................. 86,544
Foreign withholding taxes ........................... 55,570
------------
Total Liabilities ................................ 2,987,717
------------
NET ASSETS ................................................... $124,740,292
============
Net Assets Consist of:
Paid-in capital ..................................... $107,019,809
Net unrealized appreciation ......................... 17,720,483
------------
Net Assets ............................................. $124,740,292
============
See Notes to Financial Statements.
<PAGE>
INTERNATIONAL EQUITY PORTFOLIO
STATEMENT OF OPERATIONS
For the six months ended April 30, 2000
(expressed in U.S. dollars)
(unaudited)
INVESTMENT INCOME:
Income:
Dividends (net of foreign withholding tax of $96,324) ... $ 432,710
Interest ................................................ 52,003
-----------
Total Income .......................................... 484,713
-----------
Expenses:
Expense reimbursement fee (Note 2) ...................... 431,226
Administrative fee (Note 2) ............................. 17,492
Amortization of organization expenses (Note 1) ......... 442
-----------
Total Expenses ........................................ 449,160
-----------
Net Investment Income ................................. 35,553
-----------
NET REALIZED AND UNREALIZED GAIN (Notes 1 and 3):
Net realized gain on investments and foreign exchange
transactions ........................................... 6,973,746
Net change in unrealized appreciation on investments
and foreign currency translations ....................... 6,513,435
-----------
Net Realized and Unrealized Gain ........................ 13,487,181
-----------
Net Increase in Net Assets Resulting from Operations ...... $13,522,734
===========
See Notes to Financial Statements.
<PAGE>
INTERNATIONAL EQUITY PORTFOLIO
STATEMENT OF CHANGES IN NET ASSETS
(expressed in U.S. dollars)
<TABLE>
<CAPTION>
For the
six months ended For the
April 30, 2000 year ended
(unaudited) October 31, 1999
---------------- ----------------
<S> <C> <C>
INCREASE IN NET ASSETS:
Operations:
Net investment income ............................... $ 35,553 $ 190,492
Net realized gain on investments and foreign exchange
transactions ....................................... 6,973,746 10,563,181
Net change in unrealized appreciation on investments
and foreign currency translations .................. 6,513,435 6,673,316
------------ -------------
Net increase in net assets resulting from operations 13,522,734 17,426,989
------------ -------------
Capital Transactions:
Proceeds from contributions ......................... 48,498,210 31,843,108
Value of withdrawals ................................ (8,731,340) (44,451,990)
------------ -------------
Net increase (decrease) in net assets resulting from
capital transactions ............................... 39,766,870 (12,608,882)
------------ -------------
Total increase in net assets ..................... 53,289,604 4,818,107
NET ASSETS:
Beginning of period ................................... 71,450,688 66,632,581
------------ -------------
End of period ......................................... $124,740,292 $ 71,450,688
============ =============
</TABLE>
See Notes to Financial Statements.
<PAGE>
FINANCIAL HIGHLIGHTS
Selected per share data and ratios for a share
outstanding throughout each period
(expressed in U.S. dollars)
<TABLE>
<CAPTION>
For the period
For the six April 1, 1995
months ended For the years ended October 31, (commencement of
April 30, 2000 -------------------------------------- operations) to
(unaudited) 1999 1998 1997 1996 October 31, 1995
-------------- ------ ----- ----- ---- -----------------
<S> <C> <C> <C> <C> <C> <C>
Ratios/Supplemental Data:
Net assets, end of
period (000's omitted) .................. $124,740 $71,451 $66,633 $46,038 $39,484 $28,191
Expenses as a percentage of
average net assets ...................... 0.90%(1) 0.87% 0.76% 0.90% 0.90% 0.90%(1)
Ratio of net investment
income to average
net assets .............................. 0.07%(1) 0.29% 0.56% 0.63% 0.68% 1.25%(1)
Portfolio turnover rate .................... 25% 86% 89% 85% 56% 23%
</TABLE>
--------------
1 Annualized.
See Notes to Financial Statements.
<PAGE>
INTERNATIONAL EQUITY PORTFOLIO
NOTES TO FINANCIAL STATEMENTS
(expressed in U.S. Dollars)
(unaudited)
1. Organization and Significant Accounting Policies. International Equity
Portfolio (the "Portfolio") is registered under the Investment Company Act of
1940, as amended, as an open-end management investment company which was
organized as a trust under the laws of the State of New York on August 15, 1994.
The Portfolio commenced operations on April 1, 1995. The Declaration of Trust
permits the Trustees to create an unlimited number of beneficial interests in
the Portfolio.
The Portfolio's financial statements are prepared in accordance with
generally accepted accounting principles, which require management to make
certain estimates and assumptions at the date of the financial statements and
are based, in part, on the following accounting policies. Actual results could
differ from those estimates.
A. Valuation of Investments. (1) The value of investments listed on
either a domestic or foreign securities exchange is based on the last sale
price on that exchange prior to the time when assets are valued, or in the
absence of recorded sales, at the average of readily available closing bid
and asked prices on such exchange; (2) unlisted securities are valued at
the average of the quoted bid and asked prices in the over-the-counter
market; (3) securities or other assets for which market quotations are not
readily available are valued at fair value in accordance with procedures
established by and under the general supervision and responsibility of the
Portfolio's Trustees. Such procedures include the use of independent
pricing services, which use prices based upon yields or prices of
securities of comparable quality, coupon, maturity and type; indications
as to the value from dealers; and general market conditions; (4) all
assets and liabilities initially expressed in foreign currencies will be
converted into U.S. dollars at the prevailing rates of exchange available
at the time of valuation; and (5) trading in securities on most foreign
exchanges and over-the-counter markets is normally completed before the
close of the New York Stock Exchange and may also take place on days on
which the New York Stock Exchange is closed. If events materially
affecting the value of foreign securities occur between the time when the
exchange on which they are traded closes and the time when the Portfolio's
net assets are calculated, such securities will be valued at fair value in
accordance with procedures established by and under the general
supervision of the Portfolio's Trustees.
B. Foreign Currency Translations. The accounting records of the
Portfolio are maintained in U.S. dollars. Foreign currency amounts are
translated into U.S. dollars at the current rate of exchange of such
currency against the U.S. dollar to determine the value of investments,
assets and liabilities. Purchases and sales of securities, and income and
expenses are translated at the prevailing rate of exchange on the
respective dates of such transactions. Upon the purchase or sale of a
security denominated in foreign currency, the Portfolio may enter into
forward foreign currency exchange contracts for the purchase or sale, for
a fixed amount of U.S. dollars of the amount of foreign currency involved
in the underlying security transaction. The Portfolio isolates that
portion of realized gain or loss on investments resulting from changes in
foreign exchange rates on investments from the fluctuations arising from
changes in market prices of such investments. Reported net realized and
unrealized gains and losses arise from the sales of portfolio securities,
sales of foreign currencies, currency gains or losses realized between the
trade and settlement dates on securities transactions, and the difference
between the amounts of dividends, interest and foreign withholding taxes
recorded on the Portfolio's books and the U.S. dollar equivalent of the
amounts actually received or paid. Net unrealized appreciation or
depreciation on foreign currency translations arise from changes in the
value of the assets and liabilities, excluding investments in securities,
at fiscal year end, arising from changes in the exchange rate.
<PAGE>
INTERNATIONAL EQUITY PORTFOLIO
NOTES TO FINANCIAL STATEMENTS (continued)
(expressed in U.S. Dollars)
(unaudited)
C. Forward Foreign Currency Exchange Contracts. The Portfolio may
enter into forward foreign currency exchange contracts ("contracts") in
connection with planned purchases or sales of securities, to hedge the
U.S. dollar value of portfolio securities denominated in a particular
currency, or to increase or shift its exposure to a currency other than
U.S. dollars. The Portfolio has no specific limitation on the percentage
of assets which may be committed to these types of contracts. The
Portfolio could be exposed to risks if the counterparties to the contracts
are unable to meet the terms of their contracts or if the value of the
foreign currency changes unfavorably. The U.S. dollar values of foreign
currency underlying all contractual commitments held by the Portfolio are
determined using forward currency exchange rates supplied by a quotation
service.
D. Accounting for Investments. Security transactions are accounted
for on the trade date. Realized gains and losses on security transactions
are determined on the identified cost method. Dividend income and other
distributions from portfolio securities are recorded on the ex-dividend
date. Dividend income is recorded net of foreign taxes withheld where
recovery of such taxes is not assured. Interest income is accrued daily.
E. Federal Income Taxes. The Portfolio will be treated as a
partnership for federal income tax purposes. As such, each investor in the
Portfolio will be subject to taxation on its share of the Portfolio's
ordinary income and capital gains. It is intended that the Portfolio's
assets will be managed in such a way that an investor in the Portfolio
will be able to comply with the provisions of the Internal Revenue Code
applicable to regulated investment companies. Accordingly, no provision
for federal income taxes is necessary.
F. Deferred Organization Expenses. Expenses incurred by the
Portfolio in connection with its organization are being amortized on a
straight-line basis over a five-year period.
2. Transactions with Affiliates.
Investment Advisory Fee. The Portfolio has an investment advisory
agreement with Brown Brothers Harriman & Co. (the "Adviser") for which it pays
the Adviser a fee calculated daily and paid monthly at an annual rate equivalent
to 0.65% of the Portfolio's average daily net assets.
Administrative Fee. The Portfolio has an administrative agreement with
Brown Brothers Harriman Trust Company (Cayman) Limited (the "Administrator") for
which it pays the Administrator a fee calculated daily and paid monthly at an
annual rate equivalent to 0.035% of the Portfolio's average daily net assets.
The Administrator has a subadministration agreement with Signature Financial
Group (Cayman) Ltd. for which Signature Financial Group (Cayman) Ltd. receives
such compensation as is from time to time agreed upon. For the six months ended
April 30, 2000, the Portfolio incurred $17,492 for administrative services.
Expense Reimbursement Fee. Brown Brothers Harriman Trust Company (Cayman)
Limited pays certain expenses of the Portfolio and receives a fee from the
Portfolio, computed and paid monthly, such that after such fee the aggregate
expenses will not exceed 0.90% of the Portfolio's average daily net assets. For
the six months ended April 30, 2000, Brown Brothers Harriman Trust Company
(Cayman) Limited incurred $411,458, including $324,846 in investment advisory
fees, in expenses on behalf of the Portfolio. The expense reimbursement
agreement will terminate when the aggregate amount of fees received by Brown
Brothers Harriman Trust Co. (Cayman) Limited thereunder equals the aggregate
amount of expenses paid by Brown Brothers Harriman Trust Company (Cayman)
Limited thereunder.
3. Investment Transactions. For the six months ended April 30, 2000, the
cost of purchases and the proceeds of sales of investment securities other than
short-term investments were $60,210,588 and $20,401,399, respectively. There
were no purchases or sales of U.S. government obligations during the period.
