PACIFIC BASIN EQUITY PORTFOLIO
PORTFOLIO OF INVESTMENTS
April 30, 2000
(unaudited)
Shares Value
------- -----------
COMMON STOCKS AND WARRANTS (99.3%)
AUSTRALIA (5.7%)
BANKING
109,200 National Australia Bank, Ltd. ....................... $ 1,496,110
------------
CONSUMER GOODS
438,200 Coca-Cola Amatil, Ltd. .............................. 1,047,691
------------
SERVICES
170,300 Lend Lease Corp. .................................... 1,845,491
2,060,000 Pasminco, Ltd. ...................................... 1,082,736
------------
2,928,227
------------
TELECOMMUNICATIONS
883,500 Cable and Wireless Optus* ........................... 2,853,281
------------
TOTAL AUSTRALIA ..................................... 8,325,309
------------
HONG KONG (7.1%)
CONSUMER NON-DURABLES
136,390 Asia Foods, Ltd.+* .................................. 220,952
------------
MULTI-INDUSTRY
140,400 Hutchinson Whampoa, Ltd. ............................ 2,036,820
522,400 Li & Fung, Ltd. ..................................... 2,038,844
------------
4,075,664
------------
TELECOMMUNICATIONS
577,300 China Telecom* ..................................... 4,131,936
323,000 Smarttone Telecom Holdings, Ltd. .................... 1,009,738
------------
5,141,674
------------
RETAIL
1,536,300 Dairy Farm International Holdings ................... 975,551
------------
TOTAL HONGKONG ...................................... 10,413,841
------------
INDIA (4.1%)
CONSUMER DURABLES
11,700 Bajaj Auto, Ltd. .................................... 95,557
------------
FINANCE
556,347 Industrial Credit & Investment
Corp. ............................................. 1,698,993
------------
MATERIALS
244,000 Indo Gulf Fertilisers and
Chemicals Corp., Ltd. GDR+* ....................... 274,500
295,142 Reliance Industries, Ltd. ........................... 2,328,681
6,595 Reliance Industries, Ltd. GDR ....................... 52,035
------------
2,655,216
------------
TELECOMMUNICATIONS
300,000 Manahanger Telephone ................................ 1,539,519
------------
TOTAL INDIA ......................................... 5,989,285
------------
JAPAN (62.5%)
BANKING
482,000 Asahi Bank, Ltd. .................................... 2,321,171
468,000 Dai Ichi Kangyo Bank ................................ 3,883,386
160,000 Sumitomo Trust and Banking
Co., Ltd. ......................................... 2,001,852
------------
8,206,409
------------
CAPITAL GOODS/DURABLES
573,000 Fuji Electric Co., Ltd. ............................. 1,719,318
95,000 Fujitsu, Ltd. ....................................... 2,692,165
107,000 Matsushita Electric Industrial
Co., Ltd. ......................................... 2,834,043
670 Matsushita Electric Industrial
Co., Ltd. (Warrants)* ............................. 1,005,000
112,000 Matsushita Electric Works ........................... 1,243,638
1,560 Matsushita Electric Works
(Warrants)* ....................................... 292,500
------------
9,786,664
------------
CHEMICALS
50,000 Shin-Etsu Chemical Co. .............................. 2,644,008
770 Shin-Etsu Chemical Co.
(Warrants)* ....................................... 1,193,500
------------
3,837,508
------------
CONSUMER ELECTRONICS
12,100 Sony Corp. .......................................... 1,390,637
14,300 Sony Corp. (New)* ................................... 1,655,399
380 Sony Corp. (Warrants)* .............................. 888,250
------------
3,934,286
------------
<PAGE>
PACIFIC BASIN EQUITY PORTFOLIO
PORTFOLIO OF INVESTMENTS
April 30, 2000 (continued)
(unaudited)
Shares Value
------- -----------
CONSUMER GOODS
149,000 Kirin Brewery Co., Ltd. ............................. $ 1,941,498
400,000 Nissan Motor Co. .................................... 1,818,855
97,000 Suzuki Motor Corp. .................................. 1,445,388
52,000 Toyota Motor Co. .................................... 2,586,034
------------
7,791,775
------------
CONSUMER NON-DURABLES
19,300 Nintendo Co., Ltd. .................................. 3,217,262
------------
ELECTRIC COMPONENTS
18,000 Matsushita Communications
Industrial Co., Ltd. .............................. 2,823,856
9,000 Rohm Co., Ltd. ...................................... 3,017,225
------------
5,841,081
------------
FINANCE
21,680 Orix Corp. .......................................... 3,095,996
------------
INSURANCE
322,000 Mitsui Marine & Fire Insurance ...................... 1,416,466
------------
MACHINERY/EQUIPMENT
450,000 Mitsubishi Heavy Industries ......................... 1,400,259
------------
MATERIALS
306,000 Kinden Corp. ........................................ 1,910,020
543,000 Mitsubishi Materials Corp. .......................... 1,810,335
818,000 Sumitomo Metal & Mining Co. ......................... 2,507,483
------------
6,227,838
------------
MULTI-INDUSTRY
3,060 Shohkoh Fund & Co. .................................. 546,935
5,200 Softbank Corp. ...................................... 1,280,978
10,400 Softbank Corp. (New)* ............................... 2,571,587
200,000 Sumitomo Corp. ...................................... 2,241,156
------------
6,640,656
------------
PHARMACEUTICALS
105,000 Kissei Pharmaceutical Co., Ltd. ..................... 1,722,124
54,000 Sankyo Co., Ltd. .................................... 1,190,220
875,000 Sankyo Co., Ltd. (Warrants)* ........................ 137,108
114,000 Santen Pharmaceutical Co., Ltd. ..................... 2,523,245
32,000 Yamanouchi Pharmaceutical
Co., Ltd. ......................................... 1,692,165
20 Yamanouchi Pharmaceutical
Co., Ltd. (Warrants)* ............................. 50,625
------------
7,315,487
------------
PRECISION INSTRUMENTS
25,000 Hoya Corp. .......................................... 2,546,768
------------
REAL ESTATE
28,800 Oriental Land Co., Ltd. ............................. 3,059,233
------------
RETAIL
34,000 Ito-Yokado Co., Ltd. ................................ 2,484,349
------------
SERVICES
14,300 Benesse Corp. ....................................... 1,248,833
15,700 Benesse Corp.(New) * ................................ 1,366,880
95,000 Credit Saison Co., Ltd. ............................. 1,552,834
75,000 Daikin Industries, Ltd. ............................. 1,427,348
1,400,000 Kawasaki Kisen Kaisha, Ltd. ......................... 2,165,216
310,000 Tokyu Corp. ......................................... 1,217,262
200,000 Toei Co. ............................................ 1,407,668
------------
10,386,041
------------
TECHNOLOGY
23,750 Internet Initiative Japan,
Inc. ADR* ......................................... 1,425,000
------------
TELECOMMUNICATIONS
110 Nippon Telegraph & Telephone ........................ 1,365,068
------------
TRANSPORTATION
246,000 Nippon Express Co. .................................. 1,553,732
------------
TOTAL JAPAN ......................................... 91,531,878
------------
PAKISTAN (0%)
MATERIALS
7 Cresent Textile Mills, Ltd. ......................... 4
------------
TOTAL PAKISTAN ...................................... 4
------------
SINGAPORE (8.9%)
FINANCE
207,952 DBS Group Holdings, Ltd. ............................ 2,863,346
------------
ELECTRIC COMPONENTS
39,000 Chartered Semiconductors ADR* ....................... 3,407,625
------------
MATERIALS
205,980 Asia Pulp & Paper, Ltd.
(Warrants)* ....................................... 35,408
------------
<PAGE>
PACIFIC BASIN EQUITY PORTFOLIO
PORTFOLIO OF INVESTMENTS
April 30, 2000 (continued)
(unaudited)
Shares Value
------ -----------
SERVICES
203,200 Singapore Airlines .................................. $ 2,107,365
------------
TELECOMMUNICATIONS
373,100 Datacraft Asia, Ltd. ................................ 2,798,250
1,250,000 Singapore Telecom ................................... 1,801,723
------------
4,599,973
------------
TOTAL SINGAPORE ..................................... 13,013,717
------------
SOUTH KOREA (11.0%)
ELECTRIC COMPONENTS
28,935 Samsung Electronics Co., GDR ........................ 7,822,032
------------
FINANCE
100,000 Samsung Securities .................................. 1,685,064
------------
MATERIALS
97,000 Pohang Iron & Steel Ltd., ADR ....................... 2,037,000
------------
TECHNOLOGY
71,370 Hyundai Electrical Industries ....................... 1,131,887
------------
TELECOMMUNICATIONS
40,000 Korea Digital Line Co.* ............................. 461,365
93,000 SK Telecom, Ltd. .................................... 2,981,813
------------
3,443,178
------------
TOTAL SOUTH KOREA ................................... 16,119,161
------------
TOTAL INVESTMENTS (identified cost $117,123,369) (a) ... 99.3% $145,393,195
CASH AND OTHER ASSETS LESS LIABILITIES ................. 0.7 1,076,636
----- ------------
NET ASSETS ............................................. 100.0% $146,469,831
===== ============
-----------------
* Non-income producing security.
+ Rule 144A security.
(a) The aggregate cost for federal income tax purposes is $ 117,123,369, the
aggregate gross unrealized appreciation is $37,064,886, and the aggregate
gross unrealized depreciation is $8,795,060, resulting in net unrealized
appreciation of $28,269,826.
See Notes to Financial Statements.
<PAGE>
PACIFIC BASIN EQUITY PORTFOLIO
STATEMENT OF ASSETS AND LIABILITIES
April 30, 2000
(unaudited)
ASSETS:
Investments in securities, at value (identified cost
$117,123,369) (Note 1) .................................. $145,393,195
Receivables for:
Investments sold ...................................... 7,807,784
Capital stock sold .................................... 1,005,977
Dividends and other ................................... 446,501
------------
Total Assets ....................................... 154,653,457
============
LIABILITIES:
Due to bank (including $1,090,931 in foreign currency) .... 258,115
Payables for:
Investments purchased ................................. 7,340,247
Capital stock redeemed ................................ 400,544
Investment advisory fee (Note 2) ...................... 82,359
Administrative fee (Note 2) ........................... 4,435
Accrued expenses and other liabilities ................ 97,926
------------
Total Liabilities .................................. 8,183,626
------------
NET ASSETS ..................................................... $146,469,831
============
Net Assets Consist of:
Paid-in capital .......................................... $118,228,653
Net unrealized appreciation .............................. 28,241,178
------------
Net Assets ..................................................... $146,469,831
============
See Notes to Financial Statements.
<PAGE>
PACIFIC BASIN EQUITY PORTFOLIO
STATEMENT OF OPERATIONS
For the six months ended April 30, 2000
(unaudited)
INVESTMENT INCOME:
Income
Dividends and other (net of foreign withholding
taxes of $110,337) .................................. $ 586,087
------------
Total Income ......................................... 586,087
------------
Expenses:
Investment advisory fee (Note 2) ....................... 457,679
Custodian fee (Note 2) ................................. 127,543
Administrative fee (Note 2) ............................ 24,644
Board of Directors' fee (Note 2) ....................... 9,337
Miscellaneous expenses ................................. 31,842
------------
TOTAL EXPENSES ....................................... 651,045
Fees paid indirectly (Note 2) ........................ (2,016)
------------
Net Expenses ......................................... 649,029
------------
Net Investment Loss .................................. (62,942)
------------
NET REALIZED AND UNREALIZED GAIN (NOTES 1 AND 3):
Net realized gain on investments and foreign exchange
transactions ......................................... 10,935,320
Net change in unrealized appreciation on investments and
foreign currency translations ......................... 28,241,178
------------
NET REALIZED AND UNREALIZED GAIN ....................... 39,176,498
------------
Net Increase in Net Assets Resulting from Operations ..... $ 39,113,556
============
See Notes to Financial Statements.
<PAGE>
PACIFIC BASIN EQUITY PORTFOLIO
STATEMENT OF CHANGES IN NET ASSETS
(unaudited)
For the
six months ended
April 30, 2000
---------------
INCREASE IN NET ASSETS:
Operations:
Net investment loss ................................... $ (62,942)
Net realized gain on investments and foreign exchange
transactions ......................................... 10,935,320
Net change in unrealized appreciation on investments
and foreign currency translations .................... 28,241,178
------------
Net increase in net assets resulting from operations . 39,113,556
------------
Capital Transactions:
Proceeds from contributions ........................... 187,017,649
Value of withdrawals .................................. (79,661,374)
------------
Net increase in net assets resulting from
capital transactions .............................. 107,356,275
------------
Total increase in net assets ....................... 146,469,831
------------
NET ASSETS:
Beginning of period ..................................... 0
------------
END OF PERIOD ................................................. $146,469,831
============
See Notes to Financial Statements.
<PAGE>
PACIFIC BASIN EQUITY PORTFOLIO
FINANCIAL STATEMENTS
(Selected per share data and ratios for a share
outstanding throughout the period)
(unaudited)
For the six
months ended
April 30, 2000
--------------
Ratios/Supplement Data:
Net asset, end of period (000's omitted) .................. $146,469
Expenses as a percentage of average net assets
Expenses paid by Portfolio ............................ 0.92%
Expense offset arrangement ............................ (0.00)(1)%
--------
Total Expenses ..................................... 0.92%
Ratio of net investment loss to average net assets ........ (0.09)%
Portfolio turnover rate ................................... 46.30%
---------------
1 Less than 0.01%.
See Notes to Financial Statements.
<PAGE>
PACIFIC BASIN EQUITY PORTFOLIO
NOTES TO FINANCIAL STATEMENTS (continued)
(unaudited)
1. Organization and Significant Accounting Policies. Pacific Basin Equity
Portfolio (the "Portfolio") is registered under the Investment Company Act of
1940, as amended, as an open-ended management investment company which was
organized as a trust under the laws of the State of New York on June 15, 1993.
The Portfolio commenced operations on November 1, 1999. 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
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 Trustee.
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 transactions. 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
the 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
equivalents 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 six months end, arising from changes in the exchange
rate.
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
<PAGE>
PACIFIC BASIN EQUITY PORTFOLIO
NOTES TO FINANCIAL STATEMENTS (continued)
(unaudited)
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 the 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's 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 & 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 each Portfolio's average daily net assets. For the six month ended
April 30, 2000, the Portfolio incurred $457,679 for advisory services.
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 sub administration services agreement with 59 Wall Street
Administrators, Inc. for which 59 Wall Street Administrators, Inc. receives such
compensation as is from time to time agreed upon, but not in excess of the
amount paid to the Administrator. For the six months ended April 30, 2000, the
Portfolio incurred $24,644 for administrative services.
Custody Agreement. The Portfolio has a custody agreement with Brown
Brothers Harriman & Co. for which Brown Brothers Harriman & Co. receives a fee
calculated paid monthly. For the six months ended April 30, 2000, the Portfolio
incurred $127,543 for custody services. These fees were reduced by $2,016, as a
result of an expense offset arrangement with the Fund's custodian.
Board of Directors' Fee. Each Director receives an annual fee as well as
reimbursement for reasonable out-of-pocket expenses from each Fund. For the six
months ended April 30, 2000, the Portfolio incurred $9,337.
3. Investment Transactions. For six months ended April 30, 2000, the cost
of purchases and the proceeds of sales of investment securities other than
short-term investments were $113,205,583 and $63,770,331, respectively. There
were no purchases or sales of U.S. government obligations during the six months.
