LEPERCQ-ISTEL FUND
FIRST-QUARTER REPORT
MARCH 31, 2000
[LOGO OMITTED]
1675 Broadway
New York, NY 10019
(212)698-0749
(800)497-1141
This report is issued for the information of shareholders of Lepercq-Istel Fund,
and is not authorized for distribution to prospective investors in the Fund
unless accompanied by the currently effective prospectus dated April 28, 2000.
LEPERCQ-ISTEL FUND
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May 15, 2000
Dear Shareholders:
The performance of your Fund for first quarter 2000, along with some relevant
comparative benchmarks, is shown in the table below.
FIRST QUARTER
2000
Lepercq-Istel Fund 0.74 %
Lipper Multi-Cap Core 5.39 %
Standard & Poor's 500 2.29 %
The U.S. economy continues to exhibit considerable momentum allowing most
companies to report strong profit growth. However, monetary tightening by the
Federal Reserve and an uptick in inflation have applied increasing tension on
the investment environment. These threats require close monitoring though they
do not yet suggest an imminent end to the current economic cycle.
The leading drivers in business have not changed. These continue to be
investments in technology for productivity enhancement and the evolution of the
internet into a platform for commerce.
Our investment approach remains unchanged. We continue to seek companies with
great business potential run by exceptional management. We are very comfortable
with the stocks we currently own and are seeing many other dynamic companies
approach price levels that should prove to be very rewarding entry points for
the long-term investor.
Recent market volatility has led us to hold a higher than normal cash position.
This reduces the potential for further losses should the market continue to
weaken, and give us the flexibility to move quickly into stocks when appropriate
opportunities present themselves.
Sincerely,
/s/ Tsering Ngudu /s/ Jerry Getsos
Tsering Ngudu Jerry Getsos
President and Portfolio Manager Executive Vice President
and Portfolio Manager
Past performance is not predictive of future performance
LEPERCQ-ISTEL FUND
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PERFORMANCE (UNAUDITED) FOR THE THREE MONTHS ENDED MARCH 31, 2000
Net Asset Value per Share, December 31, 1999 $25.57
Distribution during the Period: None
Net Asset Value per Share, March 31, 2000 $25.76
Total Return, Year to Date 0.74%
Past performance is not predictive of future performance.
LEPERCQ-ISTEL FUND
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SCHEDULE OF INVESTMENTS (UNAUDITED) AS OF MARCH 31, 2000
NUMBER OF MARKET
SHARES VALUE
COMMON STOCKS - 92.2%
BANKS - 5.6%
30,000 The Bank of New York Company, Inc. $1,246,875
10,000 The Chase Manhattan Corporation 871,875
-------
2,118,750
BIOTECHNOLOGY - 3.1%
5,000 ImClone Systems Incorporated * 384,375
8,000 Immunex Corporation * 507,500
3,000 Incyte Pharmaceuticals, Inc. * 262,313
-------
1,154,188
CHEMICALS - 2.0%
22,000 Great Lakes Chemical Corporation 748,000
-------
COMMUNICATIONS - 7.7%
10,000 Cisco Systems, Inc. * 773,125
15,000 Motorola, Inc. 2,135,625
---------
2,908,750
COMPUTERS - 4.3%
30,000 Dell Computer Corporation * 1,618,125
---------
HEALTH CARE - 5.4%
15,000 Bausch & Lomb Incorporated 782,813
18,000 Johnson & Johnson 1,261,125
---------
2,043,938
INTERNET - ADVERTISING - 2.5%
10,000 DoubleClick Inc. * 936,250
-------
INTERNET - COMMERCE - 6.3%
2,500 Commerce One, Inc. * 373,125
12,000 Priceline.com Incorporated * 960,000
6,000 eBay Inc. * 1,056,000
---------
2,389,125
INTERNET - INFRASTRUCTURE - 5.7%
13,000 Exodus Communications, Inc. 1,826,500
2,000 Network Solutions, Inc. * 307,406
-------
2,133,906
INTERNET - MEDIA - 5.2%
20,000 StarMedia Network, Inc. * 601,250
8,000 Yahoo! Inc. * 1,371,000
---------
1,972,250
INTERNET - SOFTWARE - 1.7%
4,000 Phone.com, Inc. * 652,500
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*Non-income producing security.
LEPERCQ-ISTEL FUND
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SCHEDULE OF INVESTMENTS (UNAUDITED) AS OF MARCH 31, 2000 (CONTINUED)
NUMBER OF MARKET
SHARES VALUE
INTERNET - VENTURE CAPITAL - 3.0%
10,000 CMGI Inc. * $1,133,125
----------
MEDIA - 8.6%
32,000 CBS Corporation * 1,812,000
35,000 The Walt Disney Company 1,448,125
---------
3,260,125
OIL & GAS - 4.8%
125,000 Ocean Energy Inc. * 1,796,875
---------
PHARMACEUTICALS - 3.9%
25,000 Pharmacia & Upjohn, Inc. 1,481,250
---------
SEMICONDUCTORS - 9.5%
20,000 Atmel Corporation * 1,032,500
4,000 Broadcom Corporation * 971,500
12,000 Intel Corporation 1,583,250
---------
3,587,250
SOFTWARE - 1.9%
25,000 Novell, Inc. * 715,625
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TELEPHONE - 2.7%
25,000 Global Crossing Ltd. * 1,023,437
---------
IINTERNATIONAL EQUITIES - 8.3%
50,000 Ispat International NV 743,750
10,000 Nortel Networks Corporation 1,260,000
8,000 Siemens AG 1,152,076
---------
3,155,826
TOTAL COMMON STOCKS 34,829,295
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PRINCIPAL AMOUNT
U.S. TREASURY BILLS - 7.8%
$3,000,000 U.S. Treasury Bill, due 6/22/00 2,962,200
---------
TOTAL U.S. TREASURY BILLS 2,962,200
---------
VARIABLE RATE DEMAND NOTES - 0.3%
102,817 Sara Lee Corporation 102,817
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TOTAL VARIABLE RATE
DEMAND NOTES 102,817
-------
Total Investments - 100.3% 37,894,312
----------
Liabilities, less Other Assets - (0.3)% (117,186)
---------
NET ASSETS - 100.0% $37,777,126
===========
Net Asset Value Per Share $25.76
======
(Based on 1,466,402.478 shares outstanding)
*Non-income producing security.
LEPERCQ-ISTEL FUND
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TRUSTEES
+Bruno Desforges CHAIRMAN OF THE BOARD, LEPERCQ-ISTEL TRUST; MANAGING
DIRECTOR, LEPERCQ, DE NEUFLIZE & CO. INCORPORATED;
DIRECTOR AND CHAIRMAN OF THE BOARD, LEPERCQ, DE
NEUFLIZE SECURITIES INC.
Stanley A. Deitch PRINCIPAL, CPI ASSOCIATES, INC., MEMBER, AMERICAN
INSTITUTE OF CPA'S.
+Francois Letaconnoux DIRECTOR, PRESIDENT AND CHIEF EXECUTIVE OFFICER,
LEPERCQ INC., LEPERCQ, DE NEUFLIZE & CO. INCORPORATED
AND LEPERCQ, DE NEUFLIZE SECURITIES INC.
Jean-Louis Milin MANAGING DIRECTOR, BANQUE DE NEUFLIZE, SCHLUMBERGER,
MALLET, DEMACHY
*Marvin Schiller, Ph.D. DIRECTOR, TUTOR TIME LEARNING SYSTEMS, INC.;
GENERAL PARTNER, REPRISE CAPITAL CORP.
*Franz Skryanz FINANCIAL CONSULTANT
Marie-Monique Steckel CONSULTANT; DIRECTOR, MICROCARD TECHNOLOGIES INC.;
DIRECTOR, GLOBECAST NORTH AMERICA INC.; DIRECTOR, C&P
PRESS, INC.
Dennis Tarzian PRESIDENT AND CHIEF EXECUTIVE OFFICER, NEW CENTURY
EDUCATION CORP.; DIRECTOR, NATIONAL REGISTERED
AGENTS, INC.
+Jean-Michel Terrein MANAGING DIRECTOR, LEPERCQ CORPORATION MANAGEMENT LTD.
* MEMBER OF AUDIT, ETHICS AND NOMINATING COMMITTEES
+ INTERESTED TRUSTEE
OFFICERS
Tsering Ngudu PRESIDENT
Jerry Getsos EXECUTIVE VICE PRESIDENT
Peter Hartnedy SECRETARY AND TREASURER
Investment Adviser LEPERCQ, DE NEUFLIZE & CO. INCORPORATED, NEW YORK
Underwriter & Distributor LEPERCQ, DE NEUFLIZE SECURITIES INC., NEW YORK
Transfer Agent, Dividend
Paying Agent, Administrator
and Fund Accountant FIRSTAR MUTUAL FUND SERVICES, LLC, MILWAUKEE
Custodian FIRSTAR BANK, N.A., CINCINNATI
Legal Counsel BATTLE FOWLER LLP, NEW YORK
Independent Auditors KPMG LLP, CHICAGO
