BBH GLOBAL EQUITY PORTFOLIO
N-30D, 2001-01-19
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                           BBH GLOBAL EQUITY PORTFOLIO
                            PORTFOLIO OF INVESTMENTS
                                October 31, 2000

   Shares                                                               Value
------------                                                         -----------
              Common Stocks (98.2%)

              AUSTRALIA (0.6%)

               BANKING

       1,900  National Australia Bank, Ltd. .......................  $    26,394
                                                                     -----------
              CONSUMER GOODS

       7,000   Coca-Cola Amatil, Ltd. .............................       14,249
                                                                     -----------
              SERVICES

       3,500   Lend Lease Corp. ...................................       40,974
      23,000   Pasminco, Ltd. .....................................        9,538
                                                                     -----------
                                                                          50,512
                                                                     -----------

              TELECOMMUNICATIONS

      10,000   Cable and Wireless Optus ...........................       21,180
                                                                     -----------
              Total Australia .....................................      112,335
                                                                     -----------

              FINLAND (1.4%)

              MULTI-INDUSTRY

       5,900   Nokia AB ...........................................      242,805
                                                                     -----------
              Total Finland .......................................      242,805
                                                                     -----------

              FRANCE (6.4%)

              BANKING

       1,360   Banque National de Paris CI ........................      117,270
                                                                     -----------
              CAPITAL EQUIPMENT

       2,350   Alcatel ............................................      143,401
                                                                     -----------
              ELECTRONIC SEMI-CONDUCTOR

       2,300   STMicroelectronics .................................      119,456
                                                                     -----------
              ENERGY

       1,745   Total Fina SA ......................................      249,693
                                                                     -----------
              PHARMACEUTICALS

       2,700   Aventis SA .........................................      194,777
                                                                     -----------
              SERVICES

       2,575   Accor SA ...........................................      104,244
       1,210   Suez Lyonnaise Des Eaux ............................      184,640
                                                                     -----------
                                                                         288,884
                                                                     -----------
              Total France ........................................    1,113,481
                                                                     -----------
              GERMANY (2.1%)

              BANKING

       2,300   Bayer Vereinsbank ..................................      126,295
         750   Deutsche Pfandbrief-und
                 Hypothekenbank AG ...............................        55,250
                                                                     -----------
                                                                         181,545
                                                                     -----------
               INSURANCE

         570   Allianz AG Registered ..............................      193,746
                                                                     -----------
              Total Germany .......................................      375,291
                                                                     -----------
              HONG KONG (0.7%)

              MULTI-INDUSTRY

      15,400   Li & Fung, Ltd. ....................................       28,632
                                                                     -----------

              TELECOMMUNICATIONS

      14,500   China Telecom ......................................       92,961
                                                                     -----------
              Total Hong Kong .....................................      121,593
                                                                     -----------
              IRELAND (1.6%)

              BANKING

      18,700   Allied Irish Banks, Plc. ...........................      190,447
                                                                     -----------
              PHARMACEUTICALS

       1,600   Elan Corp., Plc. ADR* ..............................       83,100
                                                                     -----------
              Total Ireland .......................................      273,547
                                                                     -----------
              ITALY (3.2%)

              FINANCE

      10,700   Banca Fideuram SpA .................................      164,548
       6,900   Mediolanum SpA .....................................      101,134
                                                                     -----------
                                                                         265,682
                                                                     -----------
              INSURANCE

       3,880   Assicurazioni Generali .............................      127,602
                                                                     -----------
              TELECOMMUNICATIONS

       8,900   Telecom Italia Mobile SpA ..........................       75,685
       8,200   Telecom Italia SpA .................................       94,995
                                                                     -----------
                                                                         170,680
                                                                     -----------
              Total Italy .........................................      563,964
                                                                     -----------


<PAGE>

                           BBH GLOBAL EQUITY PORTFOLIO
                            PORTFOLIO OF INVESTMENTS
                                October 31, 2000

   Shares                                                               Value
------------                                                         -----------
              JAPAN (11.5%)

              BANKING

           9   Mizuho Holdings, Inc.* .............................  $    69,190
       6,000   Sumitomo Trust and
                 Banking Co., Ltd. ................................       72,846
                                                                     -----------
                                                                         142,036
                                                                     -----------

              CAPITAL GOODS/DURABLES

       2,000   Fujitsu, Ltd. ......................................       35,626
       5,000   Matsushita Electric Works ..........................       58,872
                                                                     -----------
                                                                          94,498
                                                                     -----------
              CHEMICALS

       1,000   Shin-Etsu Chemical Co. .............................       41,050
                                                                     -----------
              CONSUMER ELECTRONICS

       1,000   Sony Corp. .........................................       79,901
                                                                     -----------
              CONSUMER GOODS

       4,000   Kirin Brewery Co., Ltd. ............................       41,710
      12,000   Nissan Motor Co. ...................................       82,357
                                                                     -----------
                                                                         124,067
                                                                     -----------
              CONSUMER NON-DURABLES

       2,000   Kao Corp. ..........................................       59,926
         300   Nintendo Co., Ltd. .................................       49,617
                                                                     -----------
                                                                         109,543
                                                                     -----------
              ELECTRIC COMPONENTS

       1,000   Matsushita Communications
                 Industrial Co., Ltd. .............................      131,030
         500   Rohm Co., Ltd. .....................................      126,037
                                                                     -----------
                                                                         257,067
                                                                     -----------
              FINANCE

       3,000   Nomura Securities Co., Ltd. ........................       63,637
       1,000   Orix Corp. .........................................      104,916
                                                                     -----------
                                                                         168,553
                                                                     -----------
              MACHINERY/EQUIPMENT

       8,000   Mitsubishi Heavy Industries ........................       31,081
                                                                     -----------
              MATERIALS

       5,000   Kinden Corp. .......................................       32,803
      12,000   Sumitomo Chemical Co. ..............................       59,156
      10,000   Sumitomo Metal & Mining Co. ........................       51,587
                                                                     -----------
                                                                         143,546
                                                                     -----------
              MEDIA

           3   Fuji Television Network ............................       32,987
                                                                     -----------
              MULTI-INDUSTRY

         250   Shohkoh Fund & Co. .................................       20,525
       1,000   Softbank Corp. .....................................       60,017
       8,000   Sumitomo Corp. .....................................       70,372
                                                                     -----------
                                                                         150,914
                                                                     -----------
              PHARMACEUTICALS

       2,000   Yamanouchi Pharmaceutical
                 Co., Ltd. ........................................       90,530
                                                                     -----------
              PRECISION INSTRUMENTS

       1,000   Hoya Corp. .........................................       82,650

                                                                     -----------
              REAL ESTATE

         400   Oriental Land Co., Ltd. ............................       24,190
                                                                     -----------

              RETAIL

       1,000   Ito-Yokado Co., Ltd. ...............................       45,173
                                                                     -----------
              SERVICES

       2,000   Credit Saison Co., Ltd. ............................       42,333
      36,000   Kawasaki Kisen Kaisha, Ltd. ........................       64,654
      10,000   Toei Co. ...........................................       40,409
      15,000   Tokyu Corp. ........................................       77,519
                                                                     -----------
                                                                         224,915
                                                                     -----------
              TECHNOLOGY

         220  Internet Initiative

               Japan, Inc. ADR* ...................................        5,500
                                                                     -----------
              TELECOMMUNICATIONS

           5   Nippon Telegraph & Telephone .......................       45,494
           4   NTT Docomo, Inc. ...................................       98,593
                                                                     -----------
                                                                         144,087
                                                                     -----------
              TRANSPORTATION

       7,000   Nippon Express Co. .................................       42,012
                                                                     -----------
              Total Japan .........................................    2,034,300
                                                                     -----------
              NETHERLANDS (1.6%)

              CONSUMER GOODS

       3,000   Heineken NV ........................................      162,950
                                                                     -----------
              ELECTRIC COMPONENTS

       2,910   Philips Electronics* ...............................      114,373
                                                                     -----------
              Total Netherlands ...................................      277,323
                                                                     -----------


<PAGE>

                           BBH GLOBAL EQUITY PORTFOLIO
                            PORTFOLIO OF INVESTMENTS
                                October 31, 2000

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

              SINGAPORE (0.3%)

              ELECTRIC COMPONENTS

         600   Chartered Semiconductors ADR* ......................  $    27,900
                                                                     -----------
              SERVICES

       3,000   Singapore Airlines .................................       30,063
                                                                     -----------
              Total Singapore .....................................       57,963
                                                                     -----------
              SOUTH KOREA (1.1%)

              ELECTRIC COMPONENTS

       1,100   Samsung Electronics, Ltd., GDR .....................       81,125
                                                                     -----------
              MATERIALS

       2,400   Pohang Iron & Steel Ltd., ADR* .....................       37,950
                                                                     -----------
              TELECOMMUNICATIONS

       3,000   SK Telecom, Ltd. ...................................       75,188
                                                                     -----------
              Total South Korea ...................................      194,263
                                                                     -----------
              SPAIN (2.1%)

              BANKING

      12,052   Banco Santander SA .................................      116,810
                                                                     -----------
              FINANCE

       9,640   Banco Bilbao Vizcaya SA ............................      128,449
                                                                     -----------
              TELECOMMUNICATIONS

       6,435   Telefonica CA ......................................      122,717
                                                                     -----------
              Total Spain .........................................      367,976
                                                                     -----------
              SWEDEN (1.6%)

              CAPITAL EQUIPMENT

       2,870   Atlas Copco AB .....................................       60,885
      10,700   Ericsson (LM) Telephone Co.
                 Class 'B' ........................................      142,405
                                                                     -----------
                                                                         203,290
                                                                     -----------
              CONSUMER DURABLES

       5,950   Electrolux AB ......................................       75,020
                                                                     -----------
              Total Sweden ........................................      278,310
                                                                     -----------
              SWITZERLAND (1.4%)

              PHARMACEUTICALS

         165   Novartis AG Registered .............................      250,337
                                                                     -----------
              Total Switzerland ...................................      250,337
                                                                     -----------
              UNITED KINGDOM (10.0%)

              BANKING

      18,500   Lloyds TSB Group, Plc. .............................      188,428
                                                                     -----------
              BASIC MATERIALS

       6,500   Rio Tinto, Plc. ....................................      105,154
                                                                     -----------
              ENERGY

      27,600   BP Amoco, Plc. .....................................      234,062

      21,300   Shell Transport & Trading Co., Plc. ................      171,364
                                                                     -----------
                                                                         405,426
                                                                     -----------
              FOOD & BEVERAGES

      12,600   Diageo, Plc ........................................      118,920
                                                                     -----------
              LEISURE

       9,528   Granada Compass ....................................       82,116
                                                                     -----------
              MEDIA

       5,900   Pearson, Plc. ......................................      158,280
                                                                     -----------
              PHARMACEUTICALS

       7,400   Glaxo Wellcome, Plc. ...............................      213,015
                                                                     -----------
              SERVICES

       8,200   BAA, Plc. ..........................................       68,172
      27,500   British Airways ....................................      122,891
                                                                     -----------
                                                                         191,063
                                                                     -----------
              TELECOMMUNICATIONS

      12,900   British Telecom, Plc. ..............................      151,230
      37,000   Vodafone Airtouch, Plc. ............................      153,937
                                                                     -----------
                                                                         305,167
                                                                     -----------
              Total United Kingdom ................................    1,767,569
                                                                     -----------
              UNITED STATES (52.6%)

              BASIC MATERIALS

       2,640   Alcoa, Inc. ........................................       75,735
       2,190   International Paper Co. ............................       80,209
                                                                     -----------
                                                                         155,944
                                                                     -----------
              CAPITAL GOODS/DURABLES

       2,210   Dover Corp. ........................................       93,787
       9,000   General Electric Co. ...............................      493,313
       2,180   Illinois Tool Works, Inc. ..........................      121,126
       2,000   Solectron Corporation ..............................       88,000
                                                                     -----------
                                                                         796,226
                                                                     -----------


<PAGE>

                           BBH GLOBAL EQUITY PORTFOLIO
                            PORTFOLIO OF INVESTMENTS
                                October 31, 2000

   Shares                                                               Value
------------                                                         -----------
              CONSUMER NON-DURABLES

       1,790   Avon Products, Inc. ................................  $    86,815
       2,700   Coca Cola Co. ......................................      163,013
       2,580   Estee Lauder Companies, Inc. .......................      119,809
       1,670   Procter & Gamble Co. ...............................      119,301
                                                                     -----------
                                                                         488,938
                                                                     -----------
              ENERGY

       3,972   Exxon Mobile Corp. .................................      354,253
                                                                     -----------
              FINANCE

       1,990   American Express Co. ...............................      119,400
       3,265   American International Group .......................      319,970
       4,450   Bank of New York Co, Inc. ..........................      256,153
       5,129   Citigroup, Inc. ....................................      269,914
       2,260   Fannie Mae .........................................      174,020
       5,510   Fleetboston Financial Corp. ........................      209,380
       2,360   Merrill Lynch & Co., Inc. ..........................      165,200
       1,750   SunTrust Banks, Inc. ...............................       85,422
                                                                     -----------
                                                                       1,599,459
                                                                     -----------
              HEALTH CARE

       4,550   Bristol Myers Squibb Co. ...........................      277,266
       1,900   Guidant Corp. ......................................      100,581
       3,120   Lilly (Eli) & Co. ..................................      278,850
       2,590   Medtronic, Inc. ....................................      140,669
       1,190   PE Corp. ...........................................      139,230
       5,985   Pharmacia Corp. ....................................      329,175
                                                                     -----------
                                                                       1,265,771
                                                                     -----------
              RETAIL

         970   Best Buy Co., Inc.* ................................       48,682
       3,470   Costco Wholesale Corp. .............................      127,089
       2,630   CVS Corp. ..........................................      139,226
       2,810   Gap, Inc. ..........................................       72,533
       4,035   Home Depot Inc. ....................................      173,505
                                                                     -----------
                                                                         561,035
                                                                     -----------

              SERVICES

       1,662   AT&T Corp. .........................................       38,538
       2,240   Cox Communications, Inc.* ..........................       98,700
       2,650   New York Times Co. (Class A) .......................       97,388
       3,887  Qwest Communications
                 International, Inc. ..............................      189,005
       3,780  Sprint Corp. ........................................       96,390
       3,030  Sprint Corp. PCS Group ..............................      115,519
       2,670  Time Warner, Inc. ...................................      202,680
       2,949  Viacom, Inc. (Class B) ..............................      167,724
       5,040  Williams Companies, Inc. ............................      210,735
                                                                     -----------
                                                                       1,216,679
                                                                     -----------
              TECHNOLOGY EQUIPMENT

       2,240   Applied Materials, Inc. ............................      119,000
       4,090   Automatic Data Processing, Inc. ....................      267,128
       6,050   Cisco Systems, Inc.* ...............................      325,944
       2,460   Computer Associates
                 International, Inc. ..............................       78,413
       4,440   Dell Computer Corp. ................................      130,980
       2,610   EMC Corp.* .........................................      232,453
       3,200   Intel Corp. ........................................      144,000
       2,680   International Business
                 Machines Corp. ...................................      263,980
       1,500   Kla Tencor Corp. ...................................       50,719
       5,390   Microsoft Corp. ....................................      371,236
       2,018   Nortel Networks Corp ...............................       91,819
       2,560   Sun Microsystems, Inc. .............................      283,840
       5,140   Texas Instruments, Inc. ............................      252,181
                                                                     -----------
                                                                       2,611,693
                                                                     -----------
              TELECOMMUNICATIONS

       7,800   Mcleod, Inc. .......................................      150,150
                                                                     -----------
              UTILITIES

       2,210   DQE, Inc. ..........................................       77,212
                                                                     -----------
              Total United States .................................    9,277,360
                                                                     -----------

TOTAL INVESTMENTS (identified cost $18,701,355) (a) ......  98.2%     17,308,417
CASH AND OTHER ASSETS IN EXCESS OF LIABILITIES ...........   1.8         315,849
                                                           -----     -----------
NET ASSETS ............................................... 100.0%    $17,624,266
                                                           =====     ===========

----------
*     Non-income producing security

(a)   The aggregate  cost for federal  income tax purposes is  $18,701,355,  the
      aggregate gross  unrealized  appreciation  is $701,220,  and the aggregate
      gross unrealized  depreciation is $2,094,158,  resulting in net unrealized
      depreciation of $1,392,938.

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


<PAGE>

                           BBH GLOBAL EQUITY PORTFOLIO

                       STATEMENT OF ASSETS AND LIABILITIES
                                October 31, 2000

ASSETS:
      Investments in securities, at value
        (identified cost $18,701,355) .............................  $17,308,417
      Cash ........................................................      352,294
      Dividends receivable ........................................        9,979
                                                                     -----------
              Total Assets ........................................   17,670,690
                                                                     -----------

LIABILITIES:
      Payables for:
          Expense payment fee .....................................       44,832
          Administration fee ......................................        1,592
                                                                     -----------
              Total Liabilities ...................................       46,424
                                                                     -----------
NET ASSETS ........................................................  $17,624,266
                                                                     ===========

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


<PAGE>

                           BBH GLOBAL EQUITY PORTFOLIO

                             STATEMENT OF OPERATIONS

         For the period from July 7, 2000 (Commencement of Operations)
                               to October 31, 2000

NET INVESTMENT LOSS:
      Income:
          Dividends (net of foreign withholding tax of $9,896) ..   $    46,637
                                                                    -----------
      Expenses:
          Expense payment fee ...................................        47,286
          Administrative fee ....................................         1,947
                                                                    -----------
              Total Expenses ....................................        49,233
              Net Investment Loss ...............................        (2,596)
                                                                    -----------
NET REALIZED AND UNREALIZED GAIN (LOSS):
      Net realized gain on investments and foreign
        exchange transactions ...................................         8,157
      Net change in unrealized depreciation on investments and
        foreign currency translations ...........................    (1,393,017)
                                                                    -----------
        Net Realized and Unrealized Loss .......................    (1,384,860)
                                                                    ===========
      Net Decrease in Net Assets Resulting from Operations ......   $(1,387,456)
                                                                    ===========

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


<PAGE>

                           BBH GLOBAL EQUITY PORTFOLIO

                       STATEMENT OF CHANGES IN NET ASSETS

                                                                     For the
                                                                   period from
                                                                  July 7, 2000
                                                                (Commencement of
                                                                 Operations) to
                                                                October 31, 2000
                                                                ----------------

INCREASE IN NET ASSETS:

  Operations:
      Net investment loss ......................................   $     (2,596)
      Net realized gain on investments and foreign
        exchange transactions ..................................          8,157
      Net change in unrealized depreciation on investments and
          foreign currency translations ........................     (1,393,017)
                                                                   ------------
          Net decrease in net assets resulting from operations .     (1,387,456)
                                                                   ------------
  Capital Transactions:
      Proceeds from contributions ..............................     19,081,724
      Fair value of withdrawals ................................        (70,002)
                                                                   ------------
          Net increase in net assets resulting from
            capital transactions ...............................     19,011,722
                                                                   ------------
             Total increase in net assets ......................     17,624,266
NET ASSETS:
  Beginning of period ..........................................             --
                                                                   ============
  End of period ................................................   $ 17,624,266
                                                                   ============

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


<PAGE>

                           BBH GLOBAL EQUITY PORTFOLIO
                              FINANCIAL HIGHLIGHTS

                                                                 For the period
                                                               from July 7, 2000
                                                                (Commencement of
                                                                 Operations) to
                                                                October 31, 2000
                                                               -----------------

Total Return ................................................         (7.91)%

Ratios/Supplemental Data:
      Net assets, end of period (000's omitted) .............    $   17,624

      Expenses paid by Portfolio ............................          0.90%(1)

      Ratio of net investment income to average net assets ..         (0.05)(1)

      Portfolio turnover rate ...............................             8%

----------
      (1)   Annualized.

      (2)   Had the expense  payment  agreement not been in place,  the ratio of
            expenses to average net assets and total  return  would have been as
            follows:

            Ratio of expenses to average net assets ...............     1.28%(1)

            Total Return ..........................................   (8.29)%

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


<PAGE>

                           BBH GLOBAL EQUITY PORTFOLIO

                          NOTES TO FINANCIAL STATEMENTS

      1.  Organization and Significant  Accounting  Policies.  BBH Global 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 July 7, 2000.  The  Declaration of Trust
permits the Trustees to create an unlimited  number of  beneficial  interests in
the Portfolio.

      The  Portfolio's  financial  statements  are prepared in  accordance  with
generally  accepted  accounting  principles,  which  require  management to make
certain  estimates and  assumptions at the date of the financial  statements and
are based, in part, on the following accounting  policies.  Actual results could
differ from those estimates.

            A. Valuation of Investments.  (1) The value of investments listed on
      either a domestic or foreign securities exchange is based on the last sale
      price on that exchange prior to the time when assets are valued, or in the
      absence of recorded sales, at the average of readily available closing bid
      and asked prices on such exchange;  (2) unlisted  securities are valued at
      the  average of the quoted  bid and asked  prices in the  over-the-counter
      market; (3) securities or other assets for which market quotations are not
      readily  available are valued at fair value in accordance  with procedures
      established by and under the general supervision and responsibility of the
      Portfolio's  Trustees.  Such  procedures  include  the use of  independent
      pricing  services,  which  use  prices  based  upon  yields  or  prices of
      securities of comparable quality,  coupon,  maturity and type; indications
      as to the value from  dealers;  and  general  market  conditions;  (4) all
      assets and liabilities  initially  expressed in foreign currencies will be
      converted into U.S. dollars at the prevailing rates of exchange  available
      at the time of  valuation;  and (5) trading in  securities on most foreign
      exchanges and  over-the-counter  markets is normally  completed before the
      close of the New York  Stock  Exchange  and may also take place on days on
      which  the New  York  Stock  Exchange  is  closed.  If  events  materially
      affecting the value of foreign  securities occur between the time when the
      exchange on which they are traded closes and the time when the Portfolio's
      net assets are calculated, such securities will be valued at fair value in
      accordance   with   procedures   established  by  and  under  the  general
      supervision of the Portfolio's Trustees.

            B. Foreign  Currency  Translations.  The  accounting  records of the
      Portfolio are maintained in U.S.  dollars.  Foreign  currency  amounts are
      translated  into U.S.  dollars at the  current  rate of  exchange  of such
      currency  against the U.S.  dollar to determine the value of  investments,
      assets and liabilities.  Purchases and sales of securities, and income and
      expenses  are  translated  at  the  prevailing  rate  of  exchange  on the
      respective  dates of such  transactions.  Upon the  purchase  or sale of a
      security  denominated  in foreign  currency,  the Portfolio may enter into
      forward foreign currency exchange  contracts for the purchase or sale, for
      a fixed amount of U.S. dollars of the amount of foreign currency  involved
      in the  underlying  security  transaction.  The  Portfolio  isolates  that
      portion of realized gain or loss on investments  resulting from changes in
      foreign exchange rates on investments  from the fluctuations  arising from
      changes in market  prices of such  investments.  Reported net realized and
      unrealized gains and losses arise from the sales of portfolio  securities,
      sales of foreign currencies, currency gains or losses realized between the
      trade and settlement dates on securities transactions,  and the difference
      between the amounts of dividends,  interest and foreign  withholding taxes
      recorded on the Portfolio's  books and the U.S.  dollar  equivalent of the
      amounts actually received or paid. Net unrealized appreciation or


<PAGE>

                           BBH GLOBAL EQUITY PORTFOLIO

                    NOTES TO FINANCIAL STATEMENTS (continued)

      depreciation on foreign  currency  translations  arise from changes in the
      value of the assets and liabilities,  excluding investments in securities,
      at year ended, 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 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 Signature Financial Group
for which Signature  Financial Group receives such  compensation as is from time
to time agreed  upon.  For the period  ended  October 31,  2000,  the  Portfolio
incurred $1,947 for administrative services.


<PAGE>

                           BBH GLOBAL EQUITY PORTFOLIO

                    NOTES TO FINANCIAL STATEMENT (continued)

      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  Payment Fee.  Brown Brothers  Harriman  Trust  Company,  LLC pays
certain expenses of the Fund and receives a fee from the Fund, 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 period ended October 31,
2000, Brown Brothers  Harriman Trust Company,  LLC incurred $71,525 in expenses,
including  investment  advisory fees of $36,166 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.

      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 $5,956,522 and $1,379,015,  respectively. There were
no purchases or sales of U.S. government obligations during the year.

<PAGE>

[Letterhead of Deloitte & Touche]

                                                        Deloitte & Touche [Logo]

                          INDEPENDENT AUDITORS' REPORT

Board of Trustees and Investors
BBH Global Equity Portfolio:

      We have  audited the  accompanying  statement  of assets and  liabilities,
including the  portfolio of  investments,  of BBH Global 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 period from July 7,
2000   (Commencement  of  Operations)  to  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 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 Global Equity
Portfolio at October 31, 2000, and the results of its operations, the changes in
its net  assets,  and its  financial  highlights  for the  period  then ended in
conformity with accounting principles generally accepted in the United States of
America.


/s/DELOITTE & TOUCHE LLP

Boston, Massachusetts
December 22, 2000


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