BBH INTERNATIONAL EQUITY PORTFOLIO
N-30D, 2001-01-10
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                       BBH INTERNATIONAL EQUITY Portfolio

                            Portfolio of Investments
                                October 31, 2000

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

            AUSTRALIA (1.5%)
            BANKING
   74,500   National Australia Bank, Ltd. ........................   $ 1,034,938
                                                                     -----------
            SERVICES
   71,600   Lend Lease Corp. .....................................       838,216
                                                                     -----------
            TELECOMMUNICATIONS
  351,700   Cable and Wireless Optus*.............................       744,893
                                                                     -----------
            TOTAL AUSTRALIA ......................................     2,618,047
                                                                     -----------
            FINLAND (2.7%)
            MULTI-INDUSTRY
  115,000   Nokia AB .............................................     4,732,648
                                                                     -----------
            FRANCE (14.7%)
            BANKING
   41,000   BNP Paribas SA........................................     3,535,345
                                                                     -----------
            CAPITAL EQUIPMENT
   55,845   Alcatel SA............................................     3,407,747
                                                                     -----------
            ELECTRONIC SEMI-CONDUCTOR
   46,240   STMicroelectronics....................................     2,401,590
                                                                     -----------
            ENERGY
   37,705   Total Fina SA.........................................     5,395,239
                                                                     -----------
            PHARMACEUTICALS
   63,740   Aventis SA............................................     4,598,172
                                                                     -----------
            SERVICES
   79,480   Accor SA..............................................     3,217,588
   24,705   Suez Lyonnaise Des Eaux...............................     3,769,891
                                                                     -----------
                                                                       6,987,479
                                                                     -----------
            TOTAL FRANCE .........................................    26,325,572
                                                                     -----------
            GERMANY (4.8%)
            BANKING
   49,000   Bayerische Hypo-und
              Vereinsbank AG......................................     2,690,634
   21,310   Deutsche Pfandbrief-und
              Hypothekenbank AG...................................     1,569,847
                                                                     -----------
                                                                       4,260,481
                                                                     -----------
            INSURANCE
   12,692   Allianz AG Registered.................................     4,314,066
                                                                     -----------
            TOTAL GERMANY ........................................     8,574,547
                                                                     -----------
            HONG KONG (2.1%)
            MULTI-INDUSTRY
  103,400   Hutchinson Whampoa, Ltd. .............................     1,286,037
  479,200   Li & Fung, Ltd.*......................................       890,935
                                                                     -----------
                                                                       2,176,972
                                                                     -----------
            TELECOMMUNICATIONS
  254,000   China Mobile, Ltd.*...................................     1,628,414
                                                                     -----------
            TOTAL HONG KONG ......................................     3,805,386
                                                                     -----------
            INDIA (0.0%)
            FINANCE
      550   Industrial Credit & Investment
              Corp. of India, Ltd. ...............................           871
                                                                     -----------
            MATERIALS
       16   Reliance Industries, Ltd. ............................           104
                                                                     -----------
            TOTAL INDIA ..........................................           975
                                                                     -----------
            IRELAND (3.5%)
            BANKING
  390,350   Allied Irish Banks, Plc. .............................     3,975,480
                                                                     -----------
            PHARMACEUTICALS
   42,220   Elan Corp., Plc. ADR*.................................     2,192,801
                                                                     -----------
            TOTAL IRELAND ........................................     6,168,281
                                                                     -----------
            ITALY (7.9%)
            FINANCE
  203,950   Banca Fideuram SpA....................................     3,136,434
  223,000   Mediolanum SpA........................................     3,268,522
                                                                     -----------
                                                                       6,404,956
                                                                     -----------
            INSURANCE
   94,300   Assicurazioni Generali................................     3,101,256
                                                                     -----------
            TELECOMMUNICATIONS
  258,100   Telecom Italia Mobile SpA.............................     2,194,876
  213,700   Telecom Italia SpA....................................     2,475,662
                                                                     -----------
                                                                       4,670,538
                                                                     -----------
            TOTAL ITALY ..........................................    14,176,750
                                                                     -----------
            JAPAN (22.6%)
            BANKING
  366,000   Asahi Bank, Ltd. .....................................     1,442,067
      208   Mizuho Holdings, Inc.*................................     1,599,047
  106,000   Sumitomo Trust and Banking
              Co., Ltd. ..........................................     1,286,938
                                                                     -----------
                                                                       4,328,052
                                                                     -----------
            CAPITAL GOODS/DURABLES
   36,000   Fujitsu, Ltd. ........................................       641,261
   74,000   Matsushita Electric Industrial
              Co., Ltd. ..........................................     2,149,448
   66,000   Matsushita Electric Works.............................       777,111
                                                                     -----------
                                                                       3,567,820
                                                                     -----------
            CHEMICALS
   17,000   Shin-Etsu Chemical Co. ...............................       697,851
                                                                     -----------
            CONSUMER DISCRETIONARY
   67,000   Toppan Printing Co. ..................................       591,817
                                                                     -----------


<PAGE>

                       BBH INTERNATIONAL EQUITY Portfolio

                            Portfolio of Investments
                          October 31, 2000 (continued)

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

            CONSUMER ELECTRONICS
   20,100   Sony Corp. ...........................................   $ 1,606,011
                                                                     -----------
            CONSUMER GOODS
   84,000   Kirin Brewery Co., Ltd. ..............................       875,906
  188,000   Nissan Motor Co. .....................................     1,290,255
                                                                     -----------
                                                                       2,166,161
                                                                     -----------
            CONSUMER NON-DURABLES
   25,000   Kao Corp. ............................................       749,072
    7,900   Nintendo Co., Ltd. ...................................     1,306,593
                                                                     -----------
                                                                       2,055,665
                                                                     -----------
            ELECTRIC COMPONENTS
    9,000   Matsushita Communications
              Industrial Co., Ltd. ...............................     1,179,273
    4,900   Rohm Co., Ltd. .......................................     1,235,158
                                                                     -----------
                                                                       2,414,431
                                                                     -----------
            FINANCE
   10,800   Acom Co., Ltd. .......................................       873,817
   62,000   Nomura Securities Co., Ltd. ..........................     1,315,160
   13,200   Orix Corp. ...........................................     1,384,890
                                                                     -----------
                                                                       3,573,867
                                                                     -----------
            MACHINERY/EQUIPMENT
  141,000   Mitsubishi Heavy Industries...........................       547,799
                                                                     -----------
            MATERIALS
  113,000   Kinden Corp. .........................................       741,357
  230,000   Mitsubishi Materials Corp. ...........................       676,501
  172,000   Sumitomo Chemical Co. ................................       847,904
  180,000   Sumitomo Metal & Mining Co. ..........................       928,575
                                                                     -----------
                                                                       3,194,337
                                                                     -----------
            MEDIA
       78   Fuji Television Network...............................       857,653
                                                                     -----------
            MULTI-INDUSTRY
       20   Prospect Japan Fund*..................................           164
    9,100   Softbank Corp. .......................................       546,158
  103,000   Sumitomo Corp. .......................................       906,034
                                                                     -----------
                                                                       1,452,356
                                                                     -----------
            PHARMACEUTICALS
   35,000   Kissei Pharmaceutical Co., Ltd. ......................       641,087
   41,000   Santen Pharmaceutical Co., Ltd. ......................       809,594
   21,000   Yamanouchi Pharmaceutical
              Co., Ltd. ..........................................       950,566
                                                                     -----------
                                                                       2,401,247
                                                                     -----------
            PRECISION INSTRUMENTS
   15,000   Hoya Corp. ...........................................     1,239,749
                                                                     -----------
            REAL ESTATE
   13,600   Oriental Land Co., Ltd. ..............................       822,468
                                                                     -----------
            RETAIL
   26,000   Ito-Yokado Co., Ltd. .................................     1,174,509
                                                                     -----------
            SERVICES
   38,700   Credit Saison Co., Ltd. ..............................       819,141
    2,000   Daikin Industries, Ltd. ..............................        38,668
  608,000   Kawasaki Kisen Kaisha, Ltd. ..........................     1,091,932
  195,000   Tokyu Corp. ..........................................     1,007,743
                                                                     -----------
                                                                       2,957,484
                                                                     -----------
            TELECOMMUNICATIONS
      153   Nippon Telegraph & Telephone..........................     1,392,120
       97   NTT Docomo, Inc. .....................................     2,390,892
                                                                     -----------
                                                                       3,783,012
                                                                     -----------
            TRANSPORTATION
  162,000   Nippon Express Co. ...................................       972,282
                                                                     -----------
            TOTAL JAPAN ..........................................    40,404,571
                                                                     -----------
            NETHERLANDS (3.2%)
            CONSUMER GOODS
   65,217   Heineken NV...........................................     3,542,379
                                                                     -----------
            ELECTRIC COMPONENTS
   56,163   Philips Electronics*..................................     2,207,391
                                                                     -----------
            TOTAL NETHERLANDS.....................................     5,749,770
                                                                     -----------
            SINGAPORE (2.2%)
            BANKING
   87,476   DBS Group Holdings, Ltd. .............................     1,031,004
                                                                     -----------
            SERVICES
   96,000   Singapore Airlines....................................       962,022
                                                                     -----------
            TELECOMMUNICATIONS
  117,000   Datacraft Asia, Ltd.*.................................       801,450
  703,000   Singapore Telecom.....................................     1,164,795
                                                                     -----------
                                                                       1,966,245
                                                                     -----------
            TOTAL SINGAPORE ......................................     3,959,271
                                                                     -----------

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


<PAGE>

                       BBH INTERNATIONAL EQUITY Portfolio

                            Portfolio of Investments
                          October 31, 2000 (continued)

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

            SOUTH KOREA (1.1%)
            ELECTRIC COMPONENTS
   20,000   Samsung Electronics,
            Ltd., GDR*+ ..........................................   $ 1,475,000
                                                                     -----------
            TELECOMMUNICATIONS
   18,150   SK Telecom, Ltd. .....................................       454,884
                                                                     -----------
            TOTAL SOUTH KOREA ....................................     1,929,884
                                                                     -----------
            SPAIN (6.0%)
            BANKING
  370,562   Banco Santander SA....................................     3,591,544
                                                                     -----------
            FINANCE
  270,660   Banco Bilbao Vizcaya SA...............................     3,606,433
                                                                     -----------
            TELECOMMUNICATIONS
  181,573   Telefonica de Espana SA...............................     3,462,649
                                                                     -----------
            TOTAL SPAIN ..........................................    10,660,626
                                                                     -----------
            SWEDEN (3.0%)
            CAPITAL EQUIPMENT
  359,200   Ericsson (LM) Telephone Co.
              Class 'B'...........................................     4,780,563
                                                                     -----------
            CONSUMER DURABLES
   44,413   Electrolux AB.........................................       559,979
                                                                     -----------
            TOTAL SWEDEN                                               5,340,542
                                                                     -----------
            SWITZERLAND (3.0%)
            PHARMACEUTICALS
    3,544   Novartis AG Registered................................     5,376,927
                                                                     -----------
            UNITED KINGDOM (19.2%)
            BANKING
  353,000   Lloyds TSB Group, Plc. ...............................     3,595,417
                                                                     -----------
            ENERGY
  592,800   BP Amoco, Plc. .......................................     5,027,247
  454,600   Shell Transport & Trading
              Co., Plc. ..........................................     3,657,366
                                                                     -----------
                                                                       8,684,613
                                                                     -----------
            FOOD & BEVERAGES
  360,000   Diageo, Plc...........................................     3,397,718
                                                                     -----------
            EISURE
  199,014   Granada Compass, Plc.*................................     1,715,171
                                                                     -----------
            MEDIA
  137,600   Pearson, Plc. ........................................     3,691,415
                                                                     -----------
            PHARMACEUTICALS
  177,700   Glaxo Wellcome, Plc. .................................     5,115,247
                                                                     -----------
            SERVICES
  179,000   BAA, Plc. ............................................     1,488,145
                                                                     -----------
            TELECOMMUNICATIONS
  110,850   British Telecom, Plc. ................................     1,299,525
1,279,400   Vodafone Airtouch, Plc. ..............................     5,322,887
                                                                     -----------
                                                                       6,622,412
                                                                     -----------
            TOTAL UNITED KINGDOM .................................    34,310,138
                                                                     -----------

TOTAL INVESTMENTS (identified cost $170,019,365)(a) .  97.5%        $174,133,935
CASH AND OTHER ASSETS IN EXCESS OF LIABILITIES ......   2.5            4,574,562
                                                      -----         ------------
NET ASSETS .......................................... 100.0%        $178,708,497
                                                      =====         ============

----------
*     non-income producing security.

+     144A security.

(a)   The aggregate  cost for federal income tax purposes is  $170,387,946,  the
      aggregate gross  unrealized  appreciation is $12,390,065 and the aggregate
      gross unrealized  depreciation is $8,644,076,  resulting in net unrealized
      appreciation of $3,745,989.

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


<PAGE>

                       BBH INTERNATIONAL EQUITY PORTFOLIO

                       STATEMENT OF ASSETS AND LIABILITIES
                                October 31, 2000

ASSETS:
      Investments in securities, at value
        (identified cost $170,019,365) ....................         $174,133,935
      Cash ................................................               88,292
      Receivables for:
         Investments sold .................................           10,631,383
         Contributions ....................................              911,599
         Dividends and other receivables ..................              187,197
                                                                    ------------
           Total Assets ...................................          185,952,406
                                                                    ------------
LIABILITIES:
      Payables for:
         Investments purchased ............................            6,860,060
         Withdrawals ......................................               80,964
         Expense payment fee ..............................              264,543
         Administration fee ...............................               10,011
         Foreign withholding taxes ........................               28,331
                                                                    ------------
           Total Liabilities ..............................            7,243,909
                                                                    ------------
NET ASSETS ................................................         $178,708,497
                                                                    ============

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


<PAGE>

                       BBH INTERNATIONAL EQUITY PORTFOLIO

                             STATEMENT OF OPERATIONS
                       For the year ended October 31, 2000

NET INVESTMENT INCOME:
      Income:
         Dividends (net of foreign withholding tax of $292,890) .   $ 1,351,677
         Interest ...............................................        61,799
                                                                    -----------
           Total Income .........................................     1,413,476
                                                                    -----------
      Expenses:
         Expense reimbursement fee ..............................     1,112,178
         Administrative fee .....................................        45,098
                                                                    -----------
           Total Expenses .......................................     1,157,276
                                                                    -----------
         Net Investment Income ..................................       256,200
                                                                    -----------
NET REALIZED AND UNREALIZED LOSS:
      Net realized gain on investments and
        foreign exchange transactions ...........................     1,647,086
      Net change in unrealized appreciation on investments and
        foreign currency translations ...........................    (7,090,328)
                                                                    -----------
      Net Realized and Unrealized Loss ..........................    (5,443,242)
                                                                    -----------
      Net Decrease in Net Assets Resulting from Operations ......   $(5,187,042)
                                                                    ===========

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


<PAGE>

                       BBH INTERNATIONAL EQUITY PORTFOLIO

                       STATEMENT OF CHANGES IN NET ASSETS

<TABLE>
<CAPTION>
                                                                                    For the years ended October 31,
                                                                                   ---------------------------------
                                                                                       2000                 1999
                                                                                   ------------         ------------
<S>                                                                                <C>                  <C>
INCREASE IN NET ASSETS:
      Operations:
         Net investment income ................................................    $    256,200         $    190,492
         Net realized gain on investments and foreign exchange
           transactions .......................................................       1,647,086           10,563,181
         Net change in unrealized appreciation on investments and
           foreign currency translations ......................................      (7,090,328)           6,673,316
                                                                                   ------------         ------------
         Net increase (decrease) in net assets resulting from operations ......      (5,187,042)          17,426,989
                                                                                   ------------         ------------
      Capital Transactions:
         Proceeds from contributions ..........................................     137,448,947           31,843,108
         Fair value of withdrawals ............................................     (25,004,096)         (44,451,990)
                                                                                   ------------         ------------
         Net increase (decrease) in net assets resulting from capital
           transactions .......................................................     112,444,851          (12,608,882)
                                                                                   ------------         ------------
         Total increase in net assets .........................................     107,257,809            4,818,107
NET ASSETS:
         Beginning of year ....................................................      71,450,688           66,632,581
                                                                                   ------------         ------------
         End of year ..........................................................    $178,708,497         $ 71,450,688
                                                                                   ============         ============
</TABLE>

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


<PAGE>

                       BBH INTERNATIONAL EQUITY PORTFOLIO

                              FINANCIAL HIGHLIGHTS

<TABLE>
<CAPTION>
                                                                   For the years ended October 31,
                                                        ---------------------------------------------------
                                                        2000        1999        1998      1997        1996
                                                        ----        ----        ----      ----        ----

<S>                                                       <C>       <C>          <C>        <C>       <C>
Total Return                                              7.31%     30.44%       9.44%      2.90%     10.75%
Ratios/Supplemental Data:
   Net assets, end of year (000's omitted) .......... $178,708    $71,451     $66,633    $46,038    $39,484
   Expenses as a percentage of average
     net assets .....................................     0.90%      0.87%       0.76%      0.90%      0.90%
   Ratio of net investment income to average
     net assets .....................................     0.20%      0.29%       0.56%      0.63%      0.68%
   Portfolio turnover rate ..........................       37%        86%         89%        85%        56%
</TABLE>

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


<PAGE>

                       BBH INTERNATIONAL EQUITY PORTFOLIO

                          NOTES TO FINANCIAL STATEMENTS

      1.  Organization and Significant  Accounting  Policies.  BBH 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
accounting principles generally accepted in the United States of America,  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>

                       BBH INTERNATIONAL EQUITY PORTFOLIO

                    NOTES TO FINANCIAL STATEMENTS (continued)

            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.

      2. Transactions with Affiliates.

      Investment   Advisory  Fee.  The  Portfolio  has  an  investment  advisory
agreement  with Brown  Brothers  Harriman (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 LLC (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  59  Wall   Street
Administraters, Inc. for which 59 Wall Street Administraters, Inc. receives such
compensation as is from time to time agreed upon. For the year ended October 31,
2000, the Portfolio incurred $45,098 for administrative services.

      Custody Fee. The Portfolio  has a custody  agreement  with Brown  Brothers
Harriman (the "custodian") for which the custodian receives a fee calculated and
paid monthly.

      Expense Reimbursement Fee. Brown Brothers Harriman Trust Company, LLC 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 year ended
October 31, 2000, Brown Brothers Harriman Trust Company, LLC incurred $1,094,591
including  $837,536 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 Company, LLC thereunder
equals the aggregate  amount of expenses paid by Brown  Brothers  Harriman Trust
Company, LLC thereunder.

      3.Investment  Transactions.  For the year ended October 31, 2000, the cost
of  purchases  and the  proceeds of sales of  investment  securities  other than
short-term  investments were $155,989,778 and $46,228,538,  respectively.  There
were no purchases or sales of U.S. government obligations during the period.


<PAGE>

                          INDEPENDENT AUDITORS' REPORT

Trustees and Investors
BBH International Equity Portfolio:

      We have  audited the  accompanying  statement  of assets and  liabilities,
including the portfolio of investments, of BBH International Equity Portfolio as
of October 31, 2000,  the related  statement of operations  for the years ended,
the statement of changes in net assets for the years ended October 31, 2000, and
1999, and the financial highlights for each of the years in the five-year period
ended October 31, 2000. These financial  statements and financial highlights are
the  responsibility  of the Portfolio's  management.  Our  responsibility  is to
express an opinion on these financial  statements and financial highlights based
on our audits.

      We conducted our audit in accordance  with  auditing  standards  generally
accepted in the United States of America.  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 at October 31, 2000, by  correspondence  with the custodian and
brokers;  where  replies  were not received  from  brokers,  we performed  other
auditing procedures.  An audit also includes assessing the accounting principles
used and  significant  estimates made by  management,  as well as evaluating the
overall financial statement  presentation.  We believe that our audits provide a
reasonable basis for our opinion.

      In our opinion, such financial statements and financial highlights present
fairly, in all material  respects,  the financial  position of BBH International
Equity Portfolio at October 31, 2000, the results of its operations, the changes
in its net  assets,  and its  financial  highlights  for the  respective  stated
periods in  conformity  with  accounting  principles  generally  accepted in the
United States of America.

Deloitte & Touche LLP

Boston, Massachusetts
December 22, 2000





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