U.S. EQUITY PORTFOLIO
PORTFOLIO OF INVESTMENTS
April 30, 2000
(unaudited)
Shares Value
------- ------------
COMMON STOCKS (99.8%)
BASIC MATERIALS (3.0%)
14,240 Alcoa, Inc. ................................ $ 923,820
28,530 DuPont E.I. DeNemours & Co. ................ 1,353,392
23,650 International Paper Co. .................... 869,137
-----------
TOTAL BASIC MATERIALS ...................... 3,146,349
-----------
CAPITAL GOODS/DURABLES (8.9%)
33,240 General Electric Co. ....................... 5,226,990
23,745 Honeywell International, Inc. .............. 1,329,720
23,690 Dover Corp. ................................ 1,203,748
23,840 Illinois Tool Works, Inc. .................. 1,527,250
-----------
TOTAL CAPITAL
GOODS/DURABLES ........................... 9,287,708
-----------
CONSUMER NON-DURABLES (5.7%)
18,920 Avon Products, Inc. ........................ 785,180
25,960 BestFoods .................................. 1,304,490
28,430 Coca Cola Co. .............................. 1,337,987
26,060 Estee Lauder Companies, Inc. ............... 1,149,897
23,690 Procter & Gamble Co. ....................... 1,412,516
-----------
TOTAL CONSUMER
NON-DURABLES ............................... 5,990,070
-----------
ENERGY (5.0%)
42,743 Exxon Mobil Corp. .......................... 3,320,597
52,030 Williams Companies, Inc. ................... 1,941,369
-----------
TOTAL ENERGY ............................... 5,261,966
-----------
FINANCE (14.6%)
7,100 American Express Co. ....................... 1,065,444
22,628 American International Group ............... 2,482,009
66,230 Bank of New York Co, Inc. .................. 2,719,569
56,855 Citigroup, Inc. ............................ 3,379,319
18,915 Fannie Mae ................................. 1,140,811
60,830 Fleetboston Financial Corp. ................ 2,155,663
14,170 Merrill Lynch & Co., Inc. .................. 1,444,454
18,890 SunTrust Banks, Inc. ....................... 958,667
-----------
TOTAL FINANCE .............................. 15,345,936
-----------
HEALTH CARE (9.0%)
47,946 Pharmacia Corp.* ........................... 2,394,303
42,685 Bristol Myers Squibb Co. ................... 2,238,295
14,250 Guidant Corp.* ............................. 817,594
32,940 Lilly (Eli) & Co. .......................... 2,546,674
28,430 Medtronic, Inc. ............................ 1,476,583
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TOTAL HEALTH CARE .......................... 9,473,449
-----------
RETAIL (7.0%)
28,330 Gap, Inc ..................................... 1,041,127
14,180 Best Buy Co., Inc.* .......................... 1,145,035
28,360 Costco Wholesale Corp.* ...................... 1,533,213
28,470 CVS Corp. .................................... 1,238,445
42,772 Home Depot Inc. .............................. 2,397,905
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TOTAL RETAIL ................................. 7,355,725
------------
SERVICES (11.6%)
28,550 New York Times Co. (Class A) ................. 1,175,903
28,520 CBS Corp.* ................................... 1,675,550
33,080 AT&T Corp. ................................... 1,544,423
28,120 Carnival Corp. ............................... 699,485
23,690 Cox Communications, Inc.* .................... 1,014,228
49,750 MCI Worldcom, Inc.* .......................... 2,260,516
28,380 Qwest Communications
International, Inc. .......................... 1,230,983
28,430 Time Warner, Inc. ............................ 2,556,923
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TOTAL SERVICES ............................... 12,158,011
------------
TECHNOLOGY (30.2%)
47,500 Automatic Data Processing, Inc. 2,556,094
23,645 Texas Instruments, Inc. ...................... 3,851,179
6,620 Applied Materials, Inc.* ..................... 673,999
66,210 Cisco Systems, Inc.* ......................... 4,590,214
26,090 Computer Associates
International, Inc. .......................... 1,456,148
47,150 Dell Computer Corp.* ......................... 2,363,394
14,190 EMC Corp.* ................................... 1,971,523
23,620 International Business
Machines Corp. ............................... 2,636,583
41,925 Lucent Technologies, Inc. .................... 2,607,211
56,810 Microsoft Corp.* ............................. 3,962,498
11,756 Nortel Networks Corp. ........................ 1,331,367
33,050 Sun Microsystems, Inc.* ...................... 3,038,534
11,930 PE Corp. ..................................... 715,800
------------
TOTAL TECHNOLOGY ............................. 31,754,544
------------
UTILITIES (4.8%)
37,670 DTE Energy Co. ............................... 1,228,984
42,680 GTE Corp. .................................... 2,891,570
23,800 DQE, Inc. .................................... 910,350
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TOTAL UTILITIES .............................. 5,030,904
------------
TOTAL COMMON STOCKS .......................... 104,804,662
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<PAGE>
U.S. EQUITY PORTFOLIO
PORTFOLIO OF INVESTMENTS
April 30, 2000 (continued)
(unaudited)
TOTAL INVESTMENTS (identified cost $102,164,895) (a) ..... 99.8% $104,804,662
CASH AND OTHER ASSETS IN EXCESS OF LIABILITIES ........... 0.2 246,871
------ ------------
NET ASSETS ............................................... 100.0% $105,051,533
====== ============
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* Non-income producing security
(a) The aggregate cost for federal income tax purposes is $102,164,895, the
aggregate gross unrealized appreciation is $10,032,557, and the aggregate
gross unrealized depreciation is $7,392,790, resulting in net unrealized
appreciation of $2,639,767.
See Notes to Financial Statements.
<PAGE>
U.S. EQUITY PORTOFOLIO
STATEMENT OF ASSETS AND LIABILITIES
April 30, 2000
(unaudited)
<TABLE>
<CAPTION>
<S> <C>
ASSETS:
Investments in securities, at value (identified cost $102,164,895) (Note 1) $104,804,662
Cash ...................................................................... 269,852
Receivables for:
Contributions ........................................................... 21,118
Dividends and other receivables ......................................... 58,874
------------
Total Assets ......................................................... $105,154,506
------------
LIABILITIES:
Payables for:
Withdraws ............................................................... 3,514
Advisory fee (Note 2) ................................................... 55,530
Custody fee (Note 2) .................................................... 17,093
Administration fee (Note 2) ............................................. 2,990
Accrued expenses and other liabilities .................................. 23,846
------------
Total Liabilities .................................................... 102,973
------------
NET ASSETS ...................................................................... $105,051,533
============
Net Assets Consist of:
Paid-in capital ......................................................... $102,411,766
Net unrealized appreciation ............................................. 2,639,767
------------
Net Assets ...................................................................... $105,051,533
============
</TABLE>
See Notes to Financial Statements.
<PAGE>
U.S. EQUITY PORTFOLIO
STATEMENT OF OPERATIONS
For the six months ended April 30, 2000
(unaudited)
<TABLE>
<CAPTION>
<S> <C>
INVESTMENT INCOME:
Income:
Interest ......................................... $ 16,294
Dividends (net of withholding tax of $76,589) .... 290,461
-----------
Total Income ................................. 306,755
-----------
Expenses:
Advisory fee (Note 2) ............................ 265,525
Custody fee (Note 2) ............................. 31,326
Administrative fee (Note 2) ...................... 14,298
Directors' fees and expenses (Note 2) ............ 8,664
Miscellaneous expenses ........................... 21,020
-----------
Total Expenses ............................... 340,833
-----------
Fees paid indirectly ....................... (4,304)
-----------
Net Expenses ............................... 336,529
-----------
Net Investment Loss .......................... (29,774)
-----------
NET REALIZED AND UNREALIZED GAIN (LOSS) (Notes 1 and 3):
Net realized loss on investments ................... (1,040,588)
Net change in unrealized appreciation on investments 2,639,767
-----------
Net Realized and Unrealized Gain .............. 1,599,179
-----------
Net Increase in Net Assets Resulting from Operations $ 1,569,405
===========
</TABLE>
See Notes to Financial Statements.
<PAGE>
U.S. EQUITY PORTFOLIO
STATEMENT OF CHANGES IN NET ASSETS
For the six months ended April 30, 2000
(unaudited)
For the six
months ended
April 30, 2000
--------------
INCREASE IN NET ASSETS:
Operations:
Net investment loss .................................. $ (29,774)
Net realized loss on investments ..................... (1,040,588)
Net change in unrealized appreciation on investments . 2,639,767
-------------
Net increase in net assets resulting from operations 1,569,405
-------------
Capital Transactions:
Proceeds from contributions .......................... 140,388,712
Value of withdrawals ................................. (36,906,584)
-------------
Net incresase in net assets resulting from capital
transactions .................................... 103,482,128
-------------
Total increase in net assets .................... 105,051,533
NET ASSETS:
Beginning of period .................................... 0
-------------
End of period .......................................... $ 105,051,533
=============
See Notes to Financial Statements.
<PAGE>
U.S. EQUITY PORTFOLIO
FINANCIAL HIGHLIGHTS
Selected per share data and ratios for a share outstanding throughout the period
(unaudited)
For the six
months ended
April 30, 2000
--------------
Ratios/Supplemental Data:
Net assets, end of period (000's omitted) ........ $105,052
Expenses as a percentage of average net assets:
Expenses paid by Portfolio ................... 0.83%(1)
Expense offset arrangement ................... 0.01%(1)
----
Total Expenses ......................... 0.84%
-----
Ratio of net investment loss to average net assets (0.07)%(1)
Portfolio turnover rate .......................... 215%
----------
1 Annualized
See Notes to Financial Statements.
<PAGE>
U.S. EQUITY PORTFOLIO
NOTES TO FINANCIAL STATEMENTS
(unaudited)
1. Organization and Significant Accounting Policies. The U.S. 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 if the State of New York on June 15, 1993.
The Portfolio commenced operations on November 1, 1999.
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
a 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) short-term investments which
mature in 60 days or less are valued at amortized cost if their original
maturity was 60 days or less, or by amortizing their value on the 61st day
prior to maturity, if their original maturity when acquired by the Fund
was more than 60 days, unless this is determined not to represent fair
value by the Trustees.
B. 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. Interest income is accrued daily.
C. 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 shares 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 & 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. For the six months ended
April 30, 2000, the Portfolio incurred $265,525 for advisory services.
Administrative Fee. The Corporation 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
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 $14,298 for administrative services.
<PAGE>
U.S. EQUITY PORTFOLIO
NOTES TO FINANCIAL STATEMENTS (continued)
(unaudited)
Custody Fee. The Portfolio has a custody agreement with Brown Brothers
Harriman & Co. for which Brown Brothers Harriman & Co. receives a fee calculated
and paid monthly. For the six months ended April 30, 2000, the Portfolio
incurred $31,326 for custody services. These fees were reduced $4,304 as a
result of an expense offset arrangement with the Portfolio's custodian.
Board of Directors' Fees. Each Trustee receives an annual fee as well as
reimbursement for reasonable out-of-pocket expenses from the Portfolio. For the
six months ended April 30, 2000 the Portfolio incurred $8,664 for these fees.
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 $170,679,391 and $88,268,081 respectively.
