BBH PACIFIC BASIN EQUITY PORTFOLIO
PORTFOLIO OF INVESTMENTS
October 31, 2000
Shares Value
------ -----
COMMON STOCKS (93.7%)
AUSTRALIA (4.8%)
BANKING
99,800 National Australia Bank, Ltd. ..................... $ 1,386,400
------------
CONSUMER GOODS
400,200 Coca-Cola Amatil, Ltd. ............................ 814,631
------------
SERVICES
155,500 Lend Lease Corp. .................................. 1,820,428
------------
TELECOMMUNICATIONS
806,500 Cable and Wireless Optus* ......................... 1,708,149
------------
TOTAL AUSTRALIA ................................... 5,729,608
------------
HONG KONG (6.0%)
CONSUMER NON-DURABLES
136,390 Asia Foods, Ltd.#* ................................ 220,952
------------
MULTI-INDUSTRY
141,440 Hutchinson Whampoa, Ltd. .......................... 1,759,159
952,800 Li & Fung, Ltd. ................................... 1,771,458
------------
3,530,617
------------
TELECOMMUNICATIONS
527,300 China Telecom* .................................... 3,380,562
------------
TOTAL HONG KONG ................................... 7,132,131
------------
INDIA (3.0%)
FINANCE
556,347 Industrial Credit & Investment
Corp. of India, Ltd. ............................ 880,630
------------
MATERIALS
244,000 Indo Gulf Fertilisers and
Chemicals Corp., Ltd. GDR+ ...................... 225,700
144,142 Reliance Industries, Ltd. ......................... 932,792
6,595 Reliance Industries, Ltd. GDR ..................... 42,678
------------
1,201,170
------------
TELECOMMUNICATIONS
300,000 MaHanagar Telephone ............................... 902,978
------------
SERVICE
100,000 Zee Telefilms, Ltd. ............................... 616,288
------------
TOTAL INDIA ....................................... 3,601,066
------------
JAPAN (66.9%)
BANKING
887,000 Asahi Bank, Ltd. .................................. 3,494,846
421 Mizuho Holdings, Inc.* ............................ 3,236,533
243,000 Sumitomo Trust and Banking Co., Ltd. .............. 2,950,245
------------
9,681,624
------------
CAPITAL GOODS/DURABLES
83,000 Fujitsu, Ltd. ..................................... 1,478,462
51,000 Matsushita Electric
Industrial Co., Ltd. ............................ 1,481,376
148,000 Matsushita Electric Works ......................... 1,742,612
------------
4,702,450
------------
CHEMICALS
42,000 Shin-Etsu Chemical Co. ............................ 1,724,103
------------
CONSUMER DISCRETIONARY
160,000 Toppan Printing Co. ............................... 1,413,295
------------
CONSUMER ELECTRONICS
39,100 Sony Corp. ........................................ 3,124,131
------------
CONSUMER GOODS
134,000 Kirin Brewery Co., Ltd. ........................... 1,397,279
360,000 Nissan Motor Co. .................................. 2,470,701
------------
3,867,980
------------
CONSUMER NON-DURABLES
44,000 Kao Corp. ......................................... 1,318,367
17,300 Nintendo Co., Ltd. ................................ 2,861,273
------------
4,179,640
------------
ELECTRIC COMPONENTS
16,300 Matsushita Communications
Industrial Co., Ltd. ............................ 2,135,795
11,100 Rohm Co., Ltd. .................................... 2,798,012
------------
4,933,807
------------
FINANCE
24,100 Acom Co., Ltd. .................................... 1,949,906
135,000 Nomura Securities Co., Ltd. ....................... 2,863,655
24,280 Orix Corp. ........................................ 2,547,359
------------
7,360,920
------------
MACHINERY/EQUIPMENT
405,000 Mitsubishi Heavy Industries ....................... 1,573,464
------------
<PAGE>
BBH PACIFIC BASIN EQUITY PORTFOLIO
PORTFOLIO OF INVESTMENTS
October 31, 2000 (continued)
Shares Value
------ -----
JAPAN (continued)
MATERIALS
275,000 Kinden Corp. ...................................... $ 1,804,187
488,000 Mitsubishi Materials Corp. ........................ 1,435,360
289,000 Sumitomo Chemical Co. ............................. 1,424,676
482,000 Sumitomo Metal & Mining Co. ....................... 2,486,517
------------
7,150,740
------------
MEDIA
193 Fuji Television Network ........................... 2,122,142
------------
MULTI-INDUSTRY
20,200 Softbank Corp. .................................... 1,212,352
224,000 Sumitomo Corp. .................................... 1,970,404
------------
3,182,756
------------
PHARMACEUTICALS
61,000 Kissei Pharmaceutical Co., Ltd. ................... 1,117,323
57,000 Santen Pharmaceutical Co., Ltd. ................... 1,125,533
48,000 Yamanouchi Pharmaceutical Co., Ltd. ............... 2,172,722
------------
4,415,578
------------
PRECISION INSTRUMENTS
28,900 Hoya Corp. ........................................ 2,388,583
------------
REAL ESTATE
25,800 Oriental Land Co., Ltd. ........................... 1,560,269
------------
RETAIL
48,000 Ito-Yokado Co., Ltd. .............................. 2,168,323
------------
SERVICES
85,000 Credit Saison Co., Ltd. ........................... 1,799,148
1,273,000 Kawasaki Kisen Kaisha, Ltd. ....................... 2,286,233
265,000 Toei Co. .......................................... 1,070,830
324,000 Tokyu Corp. ....................................... 1,674,403
------------
6,830,614
------------
TELECOMMUNICATIONS
360 Nippon Telegraph & Telephone ...................... 3,275,576
122 NTT Docomo, Inc. .................................. 3,007,101
------------
6,282,677
------------
TRANSPORTATION
221,000 Nippon Express Co. ................................ 1,326,385
------------
TOTAL JAPAN ....................................... 79,989,481
------------
SINGAPORE (8.3%)
BANKING
189,952 DBS Group Holdings, Ltd. .......................... 2,238,801
------------
ELECTRIC COMPONENTS
34,600 Chartered Semiconductors ADR* ..................... 1,608,900
------------
SERVICES
185,200 Singapore Airlines ................................ 1,855,902
------------
TELECOMMUNICATIONS
340,100 Datacraft Asia, Ltd.* ............................. 2,329,685
1,187,000 Singapore Telecom ................................. 1,966,731
------------
4,296,416
------------
TOTAL SINGAPORE ................................... 10,000,019
------------
SOUTH KOREA (4.4%)
ELECTRIC COMPONENTS
25,935 Samsung Electronics Co., GDR ...................... 3,249,000
------------
FINANCE
90,000 Samsung Securities ................................ 1,629,890
------------
TECHNOLOGY
59,370 Hyundai Electrical Industries* .................... 364,832
------------
TOTAL SOUTH KOREA ................................. 5,243,722
------------
TAIWAN (0.3%)
ELECTRIC COMPONENTS
55,000 Powerchip Semiconductor, Ord.* .................... 365,750
------------
TOTAL TAIWAN ...................................... 365,750
------------
The accompanying notes are an integral part of these financial statements.
<PAGE>
BBH PACIFIC BASIN EQUITY PORTFOLIO
PORTFOLIO OF INVESTMENTS
October 31, 2000 (continued)
TOTAL INVESTMENTS (identified cost $108,383,453) (a) .. 93.7% $112,061,777
CASH AND OTHER ASSETS LESS LIABILITIES ................ 6.3 7,496,947
----- ------------
NET ASSETS ............................................ 100.0% $119,558,724
===== ============
----------
* Non-income producing security.
+ Rule 144A security.
# Restricted security -- Total market value of the restricted security owned
at October 31, 2000 was $220,952 or 0.2% of net assets. Acquired on
December 13, 1999 at a cost of $220,952.
(a) The aggregate cost for federal income tax purposes is $109,614,934, the
aggregate gross unrealized appreciation is $15,131,407, and the aggregate
gross unrealized depreciation is $12,684,564, resulting in net unrealized
appreciation of $2,446,843.
The accompanying notes are an integral part of these financial statements.
<PAGE>
BBH PACIFIC BASIN EQUITY PORTFOLIO
STATEMENT OF ASSETS AND LIABILITIES
October 31, 2000
ASSETS:
Investments in securities, at value (identified
cost $108,383,453) ................................... $112,061,777
Receivables for:
Investments sold ..................................... 1,916,007
Contributions ........................................ 10,286,982
Dividends ............................................ 177,430
------------
Total Assets ..................................... 124,442,196
------------
LIABILITIES:
Due to bank (including $58,514 in foreign currency) ..... 3,824,683
Payables for:
Withdrawals .......................................... 758,697
Investment advisory fee .............................. 137,201
Custody fee .......................................... 112,936
Professional fees .................................... 36,500
Administrative fee ................................... 7,388
Board of Trustees' fee ............................... 6,067
------------
Total Liabilities ................................ 4,883,472
------------
NET ASSETS .................................................... $119,558,724
============
The accompanying notes are an integral part of these financial statements.
<PAGE>
BBH PACIFIC BASIN EQUITY PORTFOLIO
STATEMENT OF OPERATIONS
October 31, 2000
NET INVESTMENT LOSS:
Income:
Dividends and other income (net of foreign
withholding taxes of $212,080) ..................... $ 1,082,504
------------
Expenses:
Investment advisory fee .............................. 905,250
Custody fee .......................................... 317,706
Administrative fee ................................... 48,744
Professional fees .................................... 40,112
Board of Trustees' fee ............................... 19,061
Miscellaneous expenses ............................... 14,346
------------
Total Expenses ................................... 1,345,219
Fees paid indirectly ............................. (16,616)
------------
Net Expenses ..................................... 1,328,603
------------
Net Investment Loss ..................................... (246,099)
============
NET REALIZED AND UNREALIZED GAIN:
Net realized gain on investments and foreign
exchange transactions ................................. 9,779,607
Net change in unrealized appreciation on
investments and foreign currency translations ......... 3,670,320
------------
Net Realized and Unrealized Gain ................. 13,449,927
------------
Net Increase in Net Assets Resulting from Operations .... $ 13,203,828
============
The accompanying notes are an integral part of these financial statements.
<PAGE>
BBH PACIFIC BASIN EQUITY PORTFOLIO
STATEMENT OF CHANGES IN NET ASSETS
For the
year ended
October 31, 2000
----------------
INCREASE IN NET ASSETS:
Operations:
Net investment loss ................................ $ (246,099)
Net realized gain on investments and
foreign exchange transactions .................... 9,779,607
Net change in unrealized appreciation on
investments and foreigncurrency translations ..... 3,670,320
-------------
Net increase in net assets resulting from
operations ..................................... 13,203,828
-------------
Capital transactions:
Proceeds from contributions ........................ 276,934,912
Fair value of withdrawals .......................... (170,580,016)
-------------
Net increase in net assets resulting from
capital transactions ........................... 106,354,896
-------------
Total increase in net assets ................... 119,558,724
NET ASSETS:
Beginning of year ..................................... --
-------------
End of year ........................................... $ 119,558,724
=============
The accompanying notes are an integral part of these financial statements.
<PAGE>
BBH PACIFIC BASIN EQUITY PORTFOLIO
FINANCIAL HIGHLIGHTS
For the
year ended
October 31, 2000
----------------
Total Return ................................................ (3.40)%
Ratios/Supplemental Data:
Net assets, end of period (000's omitted) ................... $ 119,559
Expenses as a percentage of average net assets:
Expenses paid by Portfolio .............................. 0.95%
Expense offset arrangement .............................. 0.01%
-----------
Total Expenses ...................................... 0.96%
Ratio of net investment loss to average net assets .......... (0.18)%
Portfolio turnover rate ..................................... 76%
The accompanying notes are an integral part of these financial statements.
<PAGE>
BBH PACIFIC BASIN EQUITY PORTFOLIO
NOTES TO FINANCIAL STATEMENTS
1. Organization and Significant Accounting Policies. BBH 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
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
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 the
exchange on which they are traded closes and the time 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 year end, arising from changes in the exchange rate.
<PAGE>
BBH PACIFIC BASIN 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 each Portfolio's average daily net assets. For the year ended October
31, 2000, the Portfolio incurred $905,250 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 Signature
Financial Group for which Signature Financial Group receives such compensation
as is from time to time agreed upon, but not in excess of the amount paid to the
Administrator. For the year year ended October 31, 2000, the Portfolio incurred
$48,744 for administrative services.
Custody Agreement. The Portfolio has a custody agreement with Brown
Brothers Harriman (the "Custodian") for which Brown Brothers Harriman receives a
fee calculated and paid monthly. For the year ended October 31, 2000, the
Portfolio incurred $317,706 for custody services. Custody fees for the Portfolio
were reduced by $16,616, as a result of an expense offset arrangement with the
Portfolio's custodian.
Board of Trustees' Fee. Each Trustee receives an annual fee as well as
reimbursement for reasonable out-of-pocket expenses from the Portfolio. For the
year ended October 31, 2000, the Portfolio incurred $19,061 for the trustee
fees.
3. Investment Transactions. For year ended October 31, 2000, the cost of
purchases and the proceeds of sales of investment securities other than
short-term investments were $102,382,533 and $108,298,853, respectively. There
were no purchases or sales of U.S. government obligations during the year.
<PAGE>
INDEPENDENT AUDITORS' REPORT
Trustees and Investors
BBH Pacific Basin Equity Portfolio:
We have audited the accompanying statement of assets and liabilities,
including the portfolio of investments, of BBH Pacific Basin Equity Portfolio as
of October 31, 2000, and the related statement of operations, the statement of
changes in net assets, and the financial highlights for the year then ended.
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 audit.
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. 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 audit provides 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 Pacific Basin
Equity Portfolio at October 31, 2000, the results of its operations, the changes
in its net assets, and its financial highlights for the year then ended in
conformity with accounting principles generally accepted in the United States of
America.
DELOITTE & TOUCHE LLP
Boston, Massachusetts
December 22, 2000
