<PAGE>
[LOGO OF EXCELSIOR FUNDS INC. APPEARS HERE]
FIXED INCOME
PORTFOLIOS
SEMI-ANNUAL REPORT
SEPTEMBER 30, 1996
<PAGE>
TABLE OF CONTENTS
<TABLE>
<CAPTION>
PAGE
----
<S> <C>
LETTER TO SHAREHOLDERS.................................................... 1
STATEMENTS OF ASSETS AND LIABILITIES...................................... 2
STATEMENTS OF OPERATIONS.................................................. 4
STATEMENTS OF CHANGES IN NET ASSETS....................................... 5
FINANCIAL HIGHLIGHTS--SELECTED PER SHARE DATA AND RATIOS.................. 6
PORTFOLIOS OF INVESTMENTS
Treasury Money Fund...................................................... 8
Government Money Fund.................................................... 9
Money Fund............................................................... 10
Short-Term Government Securities Fund.................................... 11
Intermediate-Term Managed Income Fund.................................... 12
Managed Income Fund...................................................... 13
NOTES TO FINANCIAL STATEMENTS............................................. 14
</TABLE>
For shareholder account information, current price and yield quotations, or to
make an initial purchase or obtain a prospectus, call the appropriate telephone
number listed below:
. INITIAL PURCHASE AND PROSPECTUS INFORMATION AND SHAREHOLDER SERVICES 1-800-
446-1012
. CURRENT PRICE AND YIELD INFORMATION 1-800-233-9180
This report must be preceded or accompanied by a current prospectus.
Prospectuses containing more complete information including charges and
expenses regarding Excelsior Funds, Inc. and Excelsior Tax-Exempt Funds, Inc.
may be obtained by contacting the Funds at 1-800-446-1012.
Investors should read the current prospectus carefully prior to investing or
sending money.
Excelsior Funds, Inc. and Excelsior Tax-Exempt Funds, Inc. are sponsored and
distributed by Edgewood Services, Inc.
You may write to Excelsior Funds, Inc. and Excelsior Tax-Exempt Funds, Inc. at
the following address:
EXCELSIOR FUNDS, INC.
C/O CHASE GLOBAL FUNDS SERVICES COMPANY
P.O. BOX 2798
BOSTON, MA 02208-2798
SHARES IN THE FUNDS ARE NOT DEPOSITS OR OBLIGATIONS OF, OR GUARANTEED OR
ENDORSED BY, UNITED STATES TRUST COMPANY OF NEW YORK, ITS PARENT AND AFFILIATES
AND SHARES ARE NOT INSURED BY THE FEDERAL DEPOSIT INSURANCE CORPORATION, THE
FEDERAL RESERVE BOARD, OR ANY OTHER AGENCY. INVESTMENTS IN THE FUNDS INVOLVE
INVESTMENT RISKS, INCLUDING POSSIBLE LOSS OF PRINCIPAL. FUND SHARES ARE NOT
INSURED OR GUARANTEED BY THE U.S. GOVERNMENT.
<PAGE>
LETTER TO SHAREHOLDERS
- -------------------------------------------------------------------------------
Dear Shareholder:
As we close out our tenth anniversary year for the funds, we continue to
seek new opportunities to expand and improve our product offerings in response
to your investment needs. To this end, there have been some recent
developments which should be of interest to you and which I believe will
further enhance our fund family.
Our new alliance with the Excelsior Institutional Funds has enabled us to
offer two new funds. The Excelsior Institutional Optimum Growth Fund and
Institutional Value Equity Fund are both available to individual investors via
a second class of shares, Trust Shares. The Optimum Growth Fund combines a
mid- to large- capitalization growth strategy with a quantitative analysis in
the selection of complimentary securities from the Russell 1000 universe. The
Value Equity Fund applies a strict value-oriented philosophy to stock
selection and is managed by David Williams of U. S. Trust Company of New York,
who also manages the Excelsior Business & Industrial Restructuring Fund. In
addition to these funds, we now offer the California Tax-Exempt Income Fund.
This is an intermediate-term bond fund which intends to generate current
income which is exempt from state and federal taxes for California residents.
The extended Excelsior Funds Family now consists of fifteen domestic equity,
five international, eleven fixed-income, and five money market funds totaling
approximately $5.0 billion in assets. These funds have been designed to
provide a comprehensive range of investment options and offer investors, both
individual and institutional, an opportunity to allocate holdings in
accordance with their specific investment objectives.
Excelsior Fund shareholders are serviced by a dedicated team of
professionals. We recognize the importance of excellent shareholder service
and are committed to meeting your needs as investors in a proactive manner. We
appreciate the confidence which your investment represents in the funds and
strive to build on this confidence and expand our relationship with you as we
enter our second decade of operation.
Alfred C. Tannachion
Chairman of the Board and President
1
<PAGE>
EXCELSIOR FUNDS, INC.
STATEMENTS OF ASSETS AND LIABILITIES
AS OF SEPTEMBER 30, 1996 (UNAUDITED)
<TABLE>
<CAPTION>
INTERMEDIATE-
SHORT-TERM TERM
TREASURY GOVERNMENT GOVERNMENT MANAGED MANAGED
MONEY MONEY MONEY SECURITIES INCOME INCOME
FUND FUND FUND FUND FUND FUND
------------ ------------ ------------ ----------- ------------- ------------
<S> <C> <C> <C> <C> <C> <C>
ASSETS:
Investments, at cost-
see accompanying
portfolios............ $286,080,331 $504,077,106 $389,848,738 $28,694,510 $71,131,615 $181,592,790
============ ============ ============ =========== =========== ============
Investments, at value*
(Note 1).............. $286,080,331 $504,077,106 $389,848,738 $28,709,448 $70,527,354 $181,888,974
Cash................... -- -- -- 150 41 --
Interest receivable.... 230,649 1,744,365 835,015 226,149 937,978 1,989,396
Receivable for fund
shares sold........... -- -- 2,374 125,739 87,257 279,942
Receivable for
investments sold...... -- -- -- -- -- 5,065,829
Prepaid expenses....... 1,394 3,937 4,376 551 427 548
Unamortized
organization costs
(Note 5).............. -- -- -- 5,253 5,253 --
------------ ------------ ------------ ----------- ----------- ------------
TOTAL ASSETS........... 286,312,374 505,825,408 390,690,503 29,067,290 71,558,310 189,224,689
LIABILITIES:
Payable for dividends
declared.............. 1,134,355 1,988,156 1,557,388 94,010 329,249 720,017
Payable for fund shares
redeemed.............. -- -- -- 2,842 17,405 42,886
Payable for investments
purchased............. -- -- -- -- -- 4,977,850
Investment advisory
fees payable (Note 2). 67,107 87,556 63,016 5,237 17,154 93,070
Due to custodian bank.. -- 10,202 -- 104
Accrued expenses and
other payables........ 92,116 151,097 173,176 19,895 31,378 49,901
------------ ------------ ------------ ----------- ----------- ------------
TOTAL LIABILITIES...... 1,293,578 2,226,809 1,803,782 121,984 395,186 5,883,828
------------ ------------ ------------ ----------- ----------- ------------
NET ASSETS.............. $285,018,796 $503,598,599 $388,886,721 $28,945,306 $71,163,124 $183,340,861
============ ============ ============ =========== =========== ============
</TABLE>
See Notes to Financial Statements
2
<PAGE>
EXCELSIOR FUNDS, INC.
STATEMENTS OF ASSETS AND LIABILITIES--(CONTINUED)
AS OF SEPTEMBER 30, 1996 (UNAUDITED)
<TABLE>
<CAPTION>
INTERMEDIATE-
SHORT-TERM TERM
TREASURY GOVERNMENT GOVERNMENT MANAGED MANAGED
MONEY MONEY MONEY SECURITIES INCOME INCOME
FUND FUND FUND FUND FUND FUND
------------ ------------ ------------ ----------- ------------- ------------
<S> <C> <C> <C> <C> <C> <C>
NET ASSETS consist of:
Undistributed
(distributions in
excess of) net
investment income..... $ (55) $ -- $ -- $ 2,585 $ 4,259 $ 115,987
Accumulated net
realized loss on
investments........... (29,905) (60,762) (67,270) (415,995) (1,444,787) (5,138,737)
Unrealized appreciation
(depreciation) of
investments........... -- -- -- 14,938 (604,261) 296,184
Par value (Note 4)..... 285,049 503,690 389,111 4,167 10,222 21,082
Paid in capital in
excess of par value... 284,763,707 503,155,671 388,564,880 29,339,611 73,197,691 188,046,345
------------ ------------ ------------ ----------- ----------- ------------
TOTAL NET ASSETS........ $285,018,796 $503,598,599 $388,886,721 $28,945,306 $71,163,124 $183,340,861
============ ============ ============ =========== =========== ============
Shares of Common Stock
Outstanding............ 285,048,658 503,689,786 389,111,779 4,166,947 10,221,849 21,082,263
NET ASSET VALUE PER
SHARE.................. $1.00 $1.00 $1.00 $6.95 $6.96 $8.70
===== ===== ===== ===== ===== =====
</TABLE>
* Includes repurchase agreements aggregating $1,715,040 for Government Money
Fund and $2,666,827 for Money Fund.
See Notes to Financial Statements
3
<PAGE>
EXCELSIOR FUNDS, INC.
STATEMENTS OF OPERATIONS
SIX MONTHS ENDED SEPTEMBER 30, 1996 (UNAUDITED)
<TABLE>
<CAPTION>
INTERMEDIATE-
SHORT-TERM TERM
TREASURY GOVERNMENT GOVERNMENT MANAGED MANAGED
MONEY MONEY MONEY SECURITIES INCOME INCOME
FUND FUND FUND FUND FUND FUND
---------- ----------- ----------- ---------- ------------- -----------
<S> <C> <C> <C> <C> <C> <C>
INVESTMENT INCOME:
Interest income........ $7,565,181 $13,091,787 $10,527,651 $ 838,582 $2,284,567 $ 5,186,410
---------- ----------- ----------- --------- ---------- -----------
EXPENSES:
Investment advisory
fees (Note 2)......... 435,484 613,601 491,913 41,388 120,070 564,416
Administrators' fees
(Note 2).............. 223,548 377,978 303,018 21,246 52,831 115,893
Administrative
servicing fees (Note
2).................... 46,323 74,705 101,000 10,856 18,412 25,831
Shareholder servicing
agent fees............ 4,416 9,036 24,172 3,950 9,405 17,839
Custodian fees......... 57,620 100,324 90,637 5,559 12,241 29,345
Registration and filing
fees.................. 5,740 5,276 2,232 4,944 4,832 6,187
Legal and audit fees... 19,893 40,731 22,564 2,190 5,742 9,126
Directors' fees and
expenses (Note 2)..... 5,925 10,052 8,326 546 1,471 2,292
Shareholder reports.... 4,109 6,887 3,316 1,160 3,058 4,815
Amortization of
organization costs
(Note 5).............. -- -- -- 2,094 2,093 --
Miscellaneous expenses. 6,597 18,545 20,393 697 2,069 2,276
---------- ----------- ----------- --------- ---------- -----------
TOTAL EXPENSES......... 809,655 1,257,135 1,067,571 94,630 232,224 778,020
Fees waived and
reimbursed by
investment adviser and
administrators (Note
2).................... (46,323) (74,705) (101,000) (10,856) (18,412) (101,086)
---------- ----------- ----------- --------- ---------- -----------
NET EXPENSES........... 763,332 1,182,430 966,571 83,774 213,812 676,934
---------- ----------- ----------- --------- ---------- -----------
NET INVESTMENT INCOME... 6,801,849 11,909,357 9,561,080 754,808 2,070,755 4,509,476
---------- ----------- ----------- --------- ---------- -----------
REALIZED AND UNREALIZED
GAIN (LOSS) ON
INVESTMENTS
(NOTE 1):
Net realized gain
(loss) on security
transactions.......... 9,175 1,421 (200) (21,703) (977,616) (1,558,432)
Change in unrealized
appreciation
(depreciation) of
investments........... -- -- -- (103,515) 11,460 870,318
---------- ----------- ----------- --------- ---------- -----------
NET REALIZED AND
UNREALIZED GAIN (LOSS)
ON INVESTMENTS........ 9,175 1,421 (200) (125,218) (966,156) (688,114)
---------- ----------- ----------- --------- ---------- -----------
NET INCREASE IN NET
ASSETS RESULTING FROM
OPERATIONS............ $6,811,024 $11,910,778 $ 9,560,880 $ 629,590 $1,104,599 $ 3,821,362
========== =========== =========== ========= ========== ===========
</TABLE>
See Notes to Financial Statements
4
<PAGE>
EXCELSIOR FUNDS, INC.
STATEMENTS OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
INTERMEDIATE-
SHORT-TERM TERM
TREASURY GOVERNMENT GOVERNMENT MANAGED MANAGED
MONEY MONEY MONEY SECURITIES INCOME INCOME
FUND FUND FUND FUND FUND FUND
------------ ------------- ------------- ----------- ------------- ------------
<S> <C> <C> <C> <C> <C> <C>
SIX MONTHS ENDED
SEPTEMBER 30, 1996
(UNAUDITED)
Net investment income... $ 6,801,849 $ 11,909,357 $ 9,561,080 $ 754,808 $ 2,070,755 $ 4,509,476
Net realized gain (loss)
on investments......... 9,175 1,421 (200) (21,703) (977,616) (1,558,432)
Change in unrealized
appreciation
(depreciation) of
investments during the
period................. -- -- -- (103,515) 11,460 870,318
------------ ------------- ------------- ----------- ----------- ------------
Net increase in net
assets resulting from
operations............. 6,811,024 11,910,778 9,560,880 629,590 1,104,599 3,821,362
Distributions to
shareholders:
From net investment
income................ (6,801,849) (11,909,357) (9,561,080) (752,223) (2,073,016) (4,461,256)
Increase (decrease) in
net assets from fund
share transactions
(Note 4)............... 26,840,234 42,126,912 (5,397,761) 4,000,147 3,491,422 95,081,117
------------ ------------- ------------- ----------- ----------- ------------
Net increase (decrease)
in net assets.......... 26,849,409 42,128,333 (5,397,961) 3,877,514 2,523,005 94,441,223
NET ASSETS:
Beginning of period.... 258,169,387 461,470,266 394,284,682 25,067,792 68,640,119 88,899,638
------------ ------------- ------------- ----------- ----------- ------------
End of period (1)...... $285,018,796 $ 503,598,599 $ 388,886,721 $28,945,306 $71,163,124 $183,340,861
============ ============= ============= =========== =========== ============
YEAR ENDED MARCH 31,
1996
Net investment income... $ 11,211,056 $ 29,939,203 $ 32,830,403 $ 1,276,413 $ 3,638,677 $ 5,276,726
Net realized gain (loss)
on investments......... (20,652) (1,327) (32,344) 81,016 1,200,390 2,676,993
Change in unrealized
appreciation
(depreciation) of
investments during the
year................... -- -- -- 167,006 742,513 1,730,132
------------ ------------- ------------- ----------- ----------- ------------
Net increase in net
assets resulting from
operations............. 11,190,404 29,937,876 32,798,059 1,524,435 5,581,580 9,683,851
Distributions to
shareholders:
From net investment
income................ (11,211,056) (29,939,203) (32,830,403) (1,276,413) (3,637,463) (5,197,594)
Increase (decrease) in
net assets from fund
share transactions
(Note 4)............... 61,257,657 (264,302,611) (430,261,302) (395,857) 18,767,554 (1,610,864)
------------ ------------- ------------- ----------- ----------- ------------
Net increase (decrease)
in net assets.......... 61,237,005 (264,303,938) (430,293,646) (147,835) 20,711,671 2,875,393
NET ASSETS:
Beginning of year...... 196,932,382 725,774,204 824,578,328 25,215,627 47,928,448 86,024,245
------------ ------------- ------------- ----------- ----------- ------------
End of year (2)........ $258,169,387 $ 461,470,266 $ 394,284,682 $25,067,792 $68,640,119 $ 88,899,638
============ ============= ============= =========== =========== ============
</TABLE>
(1) Including undistributed (distributions in excess of) net investment income
of $(55) for Treasury Money Fund, $2,585 for Short-Term Government
Securities Fund, $4,259 for Intermediate-Term Managed Income Fund, and
$115,987 for Managed Income Fund.
(2) Including undistributed (distributions in excess of) net investment income
of $(55) for Treasury Money Fund, $6,520 for Intermediate-Term Managed
Income Fund, and $67,767 for Managed Income Fund.
See Notes to Financial Statements
5
<PAGE>
EXCELSIOR FUNDS, INC.
FINANCIAL HIGHLIGHTS -- SELECTED PER SHARE DATA AND RATIOS
For a fund share outstanding throughout each period.
<TABLE>
<CAPTION>
DISTRIBUTION
NET ASSET NET REALIZED TOTAL DIVIDENDS FROM NET
VALUE, NET AND UNREALIZED FROM FROM NET REALIZED
BEGINNING INVESTMENT GAIN (LOSS) INVESTMENT INVESTMENT GAIN ON
OF PERIOD INCOME ON INVESTMENTS OPERATIONS INCOME INVESTMENTS
--------- ---------- -------------- ---------- ---------- ------------
<S> <C> <C> <C> <C> <C> <C>
TREASURY MONEY FUND -- (2/13/91*)
Year Ended March 31,
1992................... $1.00 $0.04731 $0.00036 $0.04767 $(0.04731) $(0.00011)
1993................... 1.00 0.02987 0.00000 0.02987 (0.02987) (0.00030)
1994................... 1.00 0.02590 0.00000 0.02590 (0.02590) 0.00000
1995................... 1.00 0.04165 0.00000 0.04165 (0.04165) 0.00000
1996................... 1.00 0.05043 0.00000 0.05043 (0.05043) 0.00000
Six Months Ended
September 30, 1996
(Unaudited)........... 1.00 0.02349 0.00000 0.02349 (0.02349) 0.00000
GOVERNMENT MONEY FUND -- (5/8/85*)
Year Ended March 31,
1992................... $1.00 $0.05069 $0.00002 $0.05071 $(0.05069) $(0.00005)
1993................... 1.00 0.03205 0.00000 0.03205 (0.03205) 0.00000
1994................... 1.00 0.02736 0.00000 0.02736 (0.02736) 0.00000
1995................... 1.00 0.04397 0.00000 0.04397 (0.04397) 0.00000
1996................... 1.00 0.05296 0.00000 0.05296 (0.05296) 0.00000
Six Months Ended
September 30, 1996
(Unaudited)........... 1.00 0.02432 0.00000 0.02432 (0.02432) 0.00000
MONEY FUND -- (5/3/85*)
Year Ended March 31,
1992................... $1.00 $0.05165 $0.00017 $0.05182 $(0.05165) $(0.00019)
1993................... 1.00 0.03234 0.00000 0.03234 (0.03234) 0.00000
1994................... 1.00 0.02780 0.00000 0.02780 (0.02780) 0.00000
1995................... 1.00 0.04494 0.00002 0.04496 (0.04496) 0.00000
1996................... 1.00 0.05336 0.00000 0.05336 (0.05336) 0.00000
Six Months Ended
September 30, 1996
(Unaudited)........... 1.00 0.02435 0.00000 0.02435 (0.02435) 0.00000
SHORT-TERM GOVERNMENT SECURITIES FUND -- (12/31/92*)
Year Ended March 31,
1993................... $7.00 $ 0.06 $ 0.06 $ 0.12 $ (0.06) $ 0.00
1994................... 7.06 0.24 (0.09) 0.15 (0.24) (0.02)
1995................... 6.93 0.33 (0.04) 0.29 (0.33) 0.00
1996................... 6.89 0.40 0.09 0.49 (0.40) 0.00
Six Months Ended
September 30, 1996
(Unaudited)........... 6.98 0.19 (0.03) 0.16 (0.19) 0.00
INTERMEDIATE-TERM MANAGED INCOME FUND -- (12/31/92*)
Year Ended March 31,
1993................... $7.00 $ 0.08 $ 0.19 $ 0.27 $ (0.08) $ 0.00
1994................... 7.19 0.31 (0.27) 0.04 (0.31) 0.00
1995................... 6.83 0.39 (0.07) 0.32 (0.39) 0.00
1996................... 6.75 0.43 0.31 0.74 (0.43) 0.00
Six Months Ended
September 30, 1996
(Unaudited)........... 7.06 0.21 (0.10) 0.11 (0.21) 0.00
MANAGED INCOME FUND -- (1/9/86*)
Year Ended March 31,
1992................... $9.12 $ 0.65 $ 0.27 $ 0.92 $ (0.65) $ (0.24)
1993................... 9.15 0.58 0.79 1.37 (0.58) (0.30)
1994................... 9.64 0.47 (0.26) 0.21 (0.47) (0.31)
1995................... 8.57 0.51 (0.18) 0.33 (0.51) 0.00
1996................... 8.39 0.55 0.44 0.99 (0.54) 0.00
Six Months Ended
September 30, 1996
(Unaudited)........... 8.84 0.26 (0.14) 0.12 (0.26) 0.00
</TABLE>
* Commencement of operations.
** Not annualized.
*** Annualized.
+ Total return data does not reflect sales load payable on purchase of Fund
shares.
++ Expense ratios before waiver of fees and reimbursement of expenses (if any)
by investment adviser and administrators.
+++ Portfolio turnover calculations exclude in-kind transfers, if any, of
securities. See Note 3.
See Notes to Financial Statements
6
<PAGE>
<TABLE>
<CAPTION>
RATIO OF RATIO OF RATIO OF
DISTRIBUTIONS NET GROSS NET
IN EXCESS OF NET ASSET NET ASSETS, OPERATING OPERATING INVESTMENT
NET REALIZED VALUE, END EXPENSES EXPENSES INCOME PORTFOLIO FEE
GAIN ON TOTAL END TOTAL OF PERIOD TO AVERAGE TO AVERAGE TO AVERAGE TURNOVER WAIVERS
INVESTMENTS DISTRIBUTION OF PERIOD RETURN+ (000'S) NET ASSETS NET ASSETS++ NET ASSETS RATE+++ (NOTE 2)
------------- ------------ --------- ------- ----------- ---------- ------------ ---------- --------- --------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
$ 0.00 $(0.04742) $1.00 4.85% $ 172,293 0.52% 0.57% 4.60% -- $0.00048
0.00 (0.03017) 1.00 3.06% 227,794 0.58% 0.58% 2.97% -- 0.00000
0.00 (0.02590) 1.00 2.62% 254,683 0.58% 0.58% 2.59% -- 0.00001
0.00 (0.04165) 1.00 4.25% 196,932 0.55% 0.57% 4.09% -- 0.00019
0.00 (0.05043) 1.00 5.16% 258,169 0.55% 0.57% 5.03% -- 0.00021
0.00 (0.02349) 1.00 2.37%** 285,019 0.53%*** 0.56%*** 4.69%*** -- 0.00016
$ 0.00 $(0.05074) $1.00 5.09% $ 740,689 0.50% 0.50% 5.09% -- $0.00000
0.00 (0.03205) 1.00 3.20% 710,491 0.50% 0.50% 3.20% -- 0.00000
0.00 (0.02736) 1.00 2.77% 1,034,908 0.50% 0.50% 2.74% -- 0.00003
0.00 (0.04397) 1.00 4.49% 725,774 0.50% 0.53% 4.38% -- 0.00024
0.00 (0.05296) 1.00 5.43% 461,470 0.50% 0.53% 5.36% -- 0.00031
0.00 (0.02432) 1.00 2.46%** 503,599 0.48%*** 0.51%*** 4.85%*** -- 0.00015
$ 0.00 $(0.05184) $1.00 5.19% $ 574,274 0.51% 0.51% 5.11% -- $0.00000
0.00 (0.03234) 1.00 3.25% 784,016 0.51% 0.51% 3.21% -- 0.00000
0.00 (0.02780) 1.00 2.82% 736,077 0.51% 0.51% 2.78% -- 0.00002
0.00 (0.04496) 1.00 4.59% 824,578 0.49% 0.52% 4.49% -- 0.00026
0.00 (0.05336) 1.00 5.47% 394,285 0.50% 0.53% 5.40% -- 0.00037
0.00 (0.02435) 1.00 2.46%** 388,887 0.49%*** 0.54%*** 4.86%*** -- 0.00026
$ 0.00 $ (0.06) $7.06 1.70% $ 13,367 0.62%*** 0.82%*** 3.62%*** 93%*** $ 0.00
(0.02) (0.28) 6.93 2.12% 25,233 0.62% 0.65% 3.42% 267% 0.00
0.00 (0.33) 6.89 4.30% 25,216 0.61% 0.67% 4.80% 198% 0.00
0.00 (0.40) 6.98 7.27% 25,068 0.61% 0.80% 5.72% 77% 0.01
0.00 (0.19) 6.95 2.33%** 28,945 0.61%*** 0.69%*** 5.47%*** 133%*** 0.00
$ 0.00 $ (0.08) $7.19 3.86% $ 19,478 0.72%*** 0.98%*** 4.69%*** 66%*** $ 0.01
(0.09) (0.40) 6.83 0.45% 42,564 0.69% 0.69% 4.31% 385% 0.00
(0.01) (0.40) 6.75 4.95% 47,928 0.66% 0.68% 5.91% 682% 0.00
0.00 (0.43) 7.06 11.13% 68,640 0.64% 0.68% 6.06% 129% 0.00
0.00 (0.21) 6.96 1.47%** 71,163 0.62%*** 0.68%*** 6.04%*** 145%*** 0.00
$ 0.00 $ (0.89) $9.15 10.36% $ 99,956 1.05% 1.05% 6.97% 369% $ 0.00
0.00 (0.88) 9.64 15.74% 110,620 0.89% 1.04% 6.19% 455% 0.02
(0.50) (1.28) 8.57 1.73% 110,903 0.90% 1.06% 4.89% 459% 0.02
0.00 (0.51) 8.39 4.06% 86,024 1.00% 1.12% 6.09% 492% 0.01
0.00 (0.54) 8.84 11.86% 88,900 0.96% 1.12% 6.09% 165% 0.01
0.00 (0.26) 8.70 1.17%** 183,341 0.90%*** 1.03%*** 5.99%*** 149%*** 0.01
</TABLE>
See Notes to Financial Statements
7
<PAGE>
EXCELSIOR FUNDS, INC.
PORTFOLIO OF INVESTMENTS SEPTEMBER 30, 1996 (UNAUDITED)
TREASURY MONEY FUND
<TABLE>
<CAPTION>
PRINCIPAL DISCOUNT VALUE
AMOUNT RATE (NOTE 1)
--------- -------- ------------
<C> <S> <C> <C>
U.S. GOVERNMENT & AGENCY OBLIGATIONS -- 98.07%
Federal Farm Credit Bank
$ 25,000,000 02/13/97............................. 5.19%+ $ 24,994,644
U.S. Treasury Bills
75,000,000 10/10/96............................. 4.92 74,907,750
180,000,000 10/17/96............................. 4.90 179,607,911
------------
TOTAL U.S. GOVERNMENT & AGENCY
OBLIGATIONS (Cost $279,510,305)...... 279,510,305
------------
</TABLE>
<TABLE>
<CAPTION>
VALUE
SHARES (NOTE 1)
------ ------------
<C> <S> <C> <C>
OTHER SHORT-TERM INVESTMENTS -- 2.30%
3,570,026 Dreyfus Government Cash
Management Fund......... $ 3,570,026
3,000,000 Fidelity U.S. Treasury
Income Fund............. 3,000,000
------------
TOTAL OTHER SHORT-TERM
INVESTMENTS
(Cost $6,570,026)....... 6,570,026
------------
TOTAL INVESTMENTS
(Cost $286,080,331*)............... 100.37% $286,080,331
OTHER ASSETS & LIABILITIES (NET)... (0.37) (1,061,535)
------ ------------
NET ASSETS......................... 100.00% $285,018,796
====== ============
</TABLE>
- --------
* Aggregate cost for Federal tax and book purposes.
+ Variable or floating rate securities--rate disclosed is as of September 30,
1996.
See Notes to Financial Statements
8
<PAGE>
EXCELSIOR FUNDS, INC.
PORTFOLIO OF INVESTMENTS SEPTEMBER 30, 1996 (UNAUDITED)
GOVERNMENT MONEY FUND
<TABLE>
<CAPTION>
PRINCIPAL DISCOUNT VALUE
AMOUNT RATE (NOTE 1)
--------- -------- ------------
<S> <C> <C> <C>
U.S. GOVERNMENT & AGENCY OBLIGATIONS -- 99.75%
Federal Farm Credit Bank ................
$ 35,000,000 10/15/96................................. 5.19% $ 34,929,358
125,000,000 02/13/97................................. 5.19+ 124,967,445
Federal Home Loan Bank ..................
20,000,000 10/01/96................................. 5.70 20,000,000
50,000,000 10/24/96................................. 5.19 49,834,208
Federal Home Loan Mortgage Corporation ..
50,000,000 10/18/96................................. 5.18 49,877,695
Student Loan Marketing Association ......
70,000,000 02/13/97................................. 5.46+ 70,000,000
50,000,000 08/21/97................................. 5.46+ 49,978,200
U.S. Treasury Bills .....................
103,000,000 10/17/96................................. 4.91 102,775,160
------------
TOTAL U.S. GOVERNMENT & AGENCY
OBLIGATIONS (Cost $502,362,066).......... 502,362,066
------------
</TABLE>
<TABLE>
<CAPTION>
PRINCIPAL VALUE
AMOUNT (NOTE 1)
--------- ------------
<S> <C> <C> <C>
REPURCHASE AGREEMENT -- 0.34%
$ 1,715,040 Agreement with Dillon Read & Co., 5.60%,
dated 09/30/96, due 10/01/96 to be
repurchased at $1,715,307, collateralized
by $1,717,467 U.S. Treasury Notes, 6.625%,
due 07/31/01, valued at $1,715,352 (Cost
$1,715,040)............................... $ 1,715,040
------------
TOTAL INVESTMENTS
(Cost $504,077,106*)................................... 100.09% $504,077,106
OTHER ASSETS & LIABILITIES (NET)....................... (0.09) (478,507)
------ ------------
NET ASSETS............................................. 100.00% $503,598,599
====== ============
</TABLE>
- --------
* Aggregate cost for Federal tax and book purposes.
+ Variable or floating rate securities--rate disclosed is as of September 30,
1996.
See Notes to Financial Statements
9
<PAGE>
EXCELSIOR FUNDS, INC.
PORTFOLIO OF INVESTMENTS SEPTEMBER 30, 1996 (UNAUDITED)
MONEY FUND
<TABLE>
<CAPTION>
PRINCIPAL DISCOUNT VALUE
AMOUNT RATE (NOTE 1)
--------- -------- ------------
<S> <C> <C> <C>
U.S. GOVERNMENT & AGENCY OBLIGATIONS -- 95.70%
Federal Farm Credit Bank
$15,000,000 10/09/96.............................. 4.00% $ 14,986,667
15,000,000 10/15/96.............................. 5.19 14,969,725
47,735,000 10/25/96.............................. 5.19 47,569,837
75,000,000 02/13/97.............................. 5.25+ 74,983,931
Federal Home Loan Bank
20,000,000 10/01/96.............................. 5.70 20,000,000
50,000,000 10/07/96.............................. 5.12 49,957,333
50,000,000 10/24/96.............................. 5.19 49,834,208
Federal Home Loan Mortgage
Corp.
25,000,000 10/10/96.............................. 5.20 24,967,500
25,000,000 10/18/96.............................. 5.17 24,938,918
Student Loan Marketing
Association
50,000,000 08/21/97.............................. 5.46 49,978,200
------------
TOTAL U.S. GOVERNMENT &
AGENCY OBLIGATIONS
(Cost $372,186,319)................... 372,186,319
------------
COMMERCIAL PAPER -- 3.86%
15,000,000 Asset Securitization Corp., 10/03/96
(Cost $14,995,592).................... 5.29+ 14,995,592
------------
</TABLE>
<TABLE>
<CAPTION>
PRINCIPAL VALUE
AMOUNT (NOTE 1)
--------- ------------
<S> <C> <C> <C>
REPURCHASE AGREEMENT -- 0.69%
$2,666,827 Agreement with Dillon Read & Co.,
5.60%, dated 09/30/96, due 10/01/96 to
be repurchased at $2,667,242,
collateralized by $2,670,602 U.S.
Treasury Notes, 6.625%, due 07/31/01,
valued at $2,667,312 (Cost $2,666,827). $ 2,666,827
------------
TOTAL INVESTMENTS
(Cost $389,848,738*)............................... 100.25% $389,848,738
OTHER ASSETS & LIABILITIES (NET)................... (0.25) (962,017)
------ ------------
NET ASSETS......................................... 100.00% $388,886,721
====== ============
</TABLE>
- --------
* Aggregate cost for Federal tax and book purposes.
+ Variable or floating rate securities--rate disclosed is as of September 30,
1996.
See Notes to Financial Statements
10
<PAGE>
EXCELSIOR FUNDS, INC.
PORTFOLIO OF INVESTMENTS SEPTEMBER 30, 1996 (UNAUDITED)
SHORT-TERM GOVERNMENT SECURITIES FUND
<TABLE>
<CAPTION>
PRINCIPAL COUPON VALUE
AMOUNT RATE (NOTE 1)
--------- ------ -----------
<S> <C> <C> <C>
U.S. GOVERNMENT & AGENCY OBLIGATIONS -- 95.26%
Federal Home Loan Bank
$1,000,000 03/28/97................ 5.58% $ 999,632
Federal Home Loan
Mortgage Corp.
3,100,000 10/10/96................ 5.20 3,095,970
Federal National
Mortgage Association
1,854,956 04/01/01................ 5.50 1,777,493
Private Export Funding
320,000 03/15/01................ 5.50 307,948
Student Loan Marketing
Association
1,475,000 03/03/98................ 7.00 1,497,171
U.S. Treasury Notes
6,430,000 08/15/97................ 6.50 6,472,193
1,000,000 05/15/98................ 6.13 1,001,875
2,000,000 02/15/99................ 5.00 1,948,750
4,055,000 01/31/00................ 7.75 4,222,269
6,285,000 08/31/00................ 6.25 6,249,647
-----------
TOTAL U.S. GOVERNMENT &
AGENCY OBLIGATIONS
(Cost $27,558,010)...... 27,572,948
-----------
</TABLE>
<TABLE>
<CAPTION>
VALUE
SHARES (NOTE 1)
------ -----------
<S> <C> <C>
OTHER SHORT-TERM INVESTMENTS -- 3.93%
565,000 Dreyfus Government Cash Management Fund........... $ 565,000
571,500 Fidelity U.S. Treasury II Fund.................... 571,500
-----------
TOTAL OTHER SHORT-TERM INVESTMENTS
(Cost $1,136,500)................................. 1,136,500
-----------
TOTAL INVESTMENTS
(Cost $28,694,510*)........................................ 99.19% $28,709,448
OTHER ASSETS & LIABILITIES (NET)........................... 0.81 235,858
------ -----------
NET ASSETS................................................. 100.00% $28,945,306
====== ===========
</TABLE>
- --------
* Aggregate cost for Federal tax and book purposes.
See Notes to Financial Statements
11
<PAGE>
EXCELSIOR FUNDS, INC.
PORTFOLIO OF INVESTMENTS SEPTEMBER 30, 1996 (UNAUDITED)
INTERMEDIATE-TERM MANAGED INCOME FUND
<TABLE>
<CAPTION>
PRINCIPAL COUPON VALUE
AMOUNT RATE (NOTE 1)
--------- ------ -----------
<C> <S> <C> <C>
U.S. GOVERNMENT & AGENCY OBLIGATIONS -- 78.04%
Federal Home Loan
Mortgage Corp.
$ 6,200,000 10/07/96................ 5.37%# $ 6,194,451
61,390 Pool #218374, 07/01/02.. 10.50 65,154
2,000,000 Series 16, Class PH,
04/25/21................ 6.75 1,936,320
Government National
Mortgage Association
212,908 Pool #195801, 01/15/17.. 8.50 219,295
260,804 Pool #195833, 04/15/17.. 8.50 268,628
208,434 Pool #212760, 04/15/17.. 8.50 214,687
116,891 Pool #334299, 05/15/23.. 8.00 118,206
1,935,002 Pool #348190, 08/15/23.. 7.00 1,865,464
4,124,619 Pool #366379, 12/15/23.. 6.50 3,859,097
1,873,599 Pool #367412, 11/15/23.. 6.00 1,702,633
U.S. Treasury Notes
1,000,000 11/30/97................ 5.38 994,062
2,750,000 02/15/98................ 7.25 2,795,545
1,000,000 02/28/98................ 5.13 988,750
3,500,000 04/15/99................ 7.00 3,564,529
4,000,000 09/30/99................ 7.13 4,091,248
2,000,000 10/15/99................ 6.00 1,986,250
4,000,000 10/31/99................ 7.50 4,131,248
2,500,000 01/31/01................ 5.25 2,396,093
2,825,000 07/31/01................ 6.63 2,843,538
15,500,000 05/15/05................ 6.50 15,301,399
-----------
TOTAL U.S. GOVERNMENT &
AGENCY OBLIGATIONS
(Cost $55,721,213)...... 55,536,597
-----------
CORPORATE BONDS -- 14.15%
2,500,000 Anheuser-Busch Co., Inc.
09/01/05 ............... 7.00 2,464,375
3,000,000 Ford Motor Credit,
01/09/06................ 6.13 2,752,422
3,500,000 Mellon Bank, N.A.,
03/15/06 ............... 7.00 3,412,045
1,500,000 Republic NY Corp.,
03/22/11 ............... 7.00 1,441,145
-----------
TOTAL CORPORATE BONDS
(Cost $10,434,061)...... 10,069,987
-----------
FOREIGN GOVERNMENT BOND -- 4.55%
3,500,000 Province of Ontario
(Cost $3,292,791)....... 6.00 3,237,220
-----------
</TABLE>
<TABLE>
<CAPTION>
VALUE
SHARES (NOTE 1)
------ -----------
<C> <S> <C> <C>
OTHER SHORT-TERM INVESTMENTS -- 2.37%
747,050 Dreyfus Government Cash Management Fund....... $ 747,050
936,500 Fidelity U.S. Treasury II Fund................ 936,500
-----------
TOTAL OTHER SHORT-TERM INVESTMENTS
(Cost $1,683,550)............................. 1,683,550
-----------
TOTAL INVESTMENTS
(Cost $71,131,615*)................................... 99.11% $70,527,354
OTHER ASSETS & LIABILITIES (NET)....................... 0.89 635,770
------ -----------
NET ASSETS............................................. 100.00% $71,163,124
====== ===========
</TABLE>
- --------
* Aggregate cost for Federal tax and book purposes.
# Discount Rate.
See Notes to Financial Statements
12
<PAGE>
EXCELSIOR FUNDS, INC.
PORTFOLIO OF INVESTMENTS SEPTEMBER 30, 1996 (UNAUDITED)
MANAGED INCOME FUND
<TABLE>
<CAPTION>
PRINCIPAL COUPON VALUE
AMOUNT RATE (NOTE 1)
----------- ------ ------------
<S> <C> <C>
U.S. GOVERNMENT & AGENCY OBLIGATIONS -- 74.91%
Federal Farm Credit Bank
$11,000,000 10/02/96............................... 5.17%# $ 10,998,420
Federal Home Loan Bank
2,000,000 10/02/96............................... 5.17 1,999,713
Federal Home Loan Mortgage Corp.
4,400,000 10/07/96............................... 5.37 4,396,062
Federal National Mortgage Association
13,000,000 10/11/96............................... 5.19# 12,981,258
Government National Mortgage
Association
2,902,503 Pool #348190, 08/15/23................. 7.00 2,798,196
9,106,687 Pool #366782, 05/15/24................. 7.00 8,779,420
13,167,823 Pool #376533, 06/15/24................. 7.50 13,023,806
6,572,638 Pool #385985, 12/15/24................. 8.50 6,769,817
Small Business Administration
5,000,000 04/01/16............................... 7.35 4,990,625
5,000,000 08/10/06............................... 7.35 4,960,938
U.S. Treasury Bond
27,000,000 05/15/16............................... 7.25 27,573,750
U.S. Treasury Notes
10,000,000 02/28/98............................... 5.13 9,887,500
5,000,000 07/31/01............................... 6.63 5,032,810
8,500,000 08/15/03............................... 5.75 8,104,214
15,230,000 05/15/05............................... 6.50 15,034,858
------------
TOTAL U.S. GOVERNMENT &
AGENCY OBLIGATIONS
(Cost $136,983,607).................... 137,331,387
------------
CORPORATE BONDS -- 19.56%
4,000,000 Central Illinois Public Service Co.,
07/01/07............................... 7.50 4,056,940
5,000,000 Ford Motor Credit, 10/01/08............ 7.25 4,956,880
9,800,000 Mellon Bank, N.A., 03/15/06............ 7.00 9,553,726
7,200,000 Procter & Gamble Co., 01/15/26......... 6.45 6,360,847
9,800,000 Republic NY Corp., 03/22/11............ 7.00 9,415,478
1,500,000 Wisconsin Electric Power Co., 08/01/04. 7.25 1,512,450
------------
TOTAL CORPORATE BONDS
(Cost $35,849,631)..................... 35,856,321
------------
FOREIGN GOVERNMENT BOND -- 3.68%
7,300,000 Province of Ontario, 02/21/06
(Cost $6,810,202)...................... 6.00 6,751,916
------------
</TABLE>
<TABLE>
<CAPTION>
VALUE
SHARES (NOTE 1)
--------- ------------
<S> <C>
OTHER SHORT-TERM INVESTMENTS -- 1.06%
916,950 Dreyfus Government Cash Management Fund... $ 916,950
1,032,400 Fidelity U.S. Treasury II Fund............ 1,032,400
------------
TOTAL OTHER SHORT-TERM INVESTMENTS
(Cost $1,949,350)......................... 1,949,350
------------
TOTAL INVESTMENTS
(Cost $181,592,790*)................................. 99.21% $181,888,974
OTHER ASSETS & LIABILITIES (NET)..................... 0.79 1,451,887
------ ------------
NET ASSETS........................................... 100.00% $183,340,861
====== ============
</TABLE>
- --------
* Aggregate cost for Federal tax and book purposes.
# Discount Rate.
See Notes to Financial Statements
13
<PAGE>
EXCELSIOR FUNDS, INC.
NOTES TO FINANCIAL STATEMENTS (UNAUDITED)
1. SIGNIFICANT ACCOUNTING POLICIES
Excelsior Funds, Inc. ("Excelsior Fund") was incorporated under the laws of
the State of Maryland on August 2, 1984 and is registered under the Investment
Company Act of 1940, as amended, as an open-end management investment company.
Excelsior Fund currently offers shares in twenty managed investment
portfolios, each having its own investment objectives and policies. The
following is a summary of significant accounting policies for Treasury Money
Fund, Government Money Fund, Money Fund, Short-Term Government Securities
Fund, Intermediate-Term Managed Income Fund and Managed Income Fund (the
"Portfolios"). Such policies are in conformity with generally accepted
accounting principles and are consistently followed by Excelsior Fund in the
preparation of the financial statements. Generally accepted accounting
principles require management to make estimates and assumptions that affect
the reported amounts and disclosures in the financial statements. Actual
results could differ from these estimates. The financial statements for the
remaining portfolios of Excelsior Fund and Excelsior Tax-Exempt Funds, Inc.
("Excelsior Tax-Exempt Fund") are presented separately.
With regard to Treasury Money Fund, Government Money Fund and Money Fund, it
is Excelsior Fund's policy, to the extent possible, to maintain a continuous
net asset value per share of $1.00. Each of these Portfolios has adopted
certain investment portfolio, valuation and dividend distribution policies to
enable it to do so. However, there can be no assurance that the net asset
value per share of these Portfolios will not vary. The net asset values of the
shares in Short-Term Government Securities Fund, Intermediate-Term Managed
Income Fund and Managed Income Fund will fluctuate as the market values of
their portfolio securities change in response to changing market rates of
interest and other factors.
(A) PORTFOLIO VALUATION:
Treasury Money Fund, Government Money Fund and Money Fund: Securities are
valued at amortized cost, which has been determined by the Fund's Board of
Directors to represent the fair value of the Fund's investments. Amortized
cost valuation involves valuing an instrument at its cost initially and,
thereafter, assuming a constant amortization to maturity of any discount or
premium.
Short-Term Government Securities Fund, Intermediate-Term Managed Income
Fund and Managed Income Fund: Investments in securities that are traded on
a recognized stock exchange are valued at the last sale price on the
exchange on which such securities are primarily traded or at the last sale
price on the national securities market. Securities traded over-the-counter
are valued each business day on the basis of closing over-the-counter bid
prices. Securities for which there were no transactions are valued at the
average of the most recent bid prices (as calculated by an independent
pricing service (the "Service") based upon its evaluation of the market for
such securities) when, in the judgement of the Service, quoted bid prices
for securities are readily available and are representative of the bid side
of the market. Short-term debt instruments with remaining maturities
14
<PAGE>
of 60 days or less are valued at amortized cost, which approximates market
value. Securities and other assets for which market quotations are not
readily available are valued at fair value pursuant to guidelines adopted
by Excelsior Fund's Board of Directors.
Portfolio securities held by Intermediate-Term Managed Income and Managed
Income Funds which are primarily traded on foreign securities exchanges are
generally valued at the preceding closing values of such securities on
their respective exchanges, except that when an occurrence subsequent to
the time a value was so established is likely to have changed such value,
then the fair value of those securities will be determined by consideration
of other factors under the direction of the Board of Directors. A security
which is listed or traded on more than one exchange is valued at the
quotation on the exchange determined to be the primary market for such
security.
Investment in foreign debt securities having maturities of 60 days or
less are valued at amortized cost. All other foreign securities are valued
at the last current bid quotation if market quotations are available, or at
fair value as determined in accordance with policies established by the
Board of Directors. For valuation purposes, quotations of foreign
securities in foreign currency are converted to United States dollars
equivalent at the prevailing market rate on the day of conversion.
(B) SECURITY TRANSACTIONS AND INVESTMENT INCOME:
Security transactions are recorded on a trade date basis. Realized gains
and losses on investments sold are recorded on the basis of identified
cost. Interest income, adjusted for amortization of premiums and, when
appropriate, discounts on investments, is earned from settlement date and
is recorded on the accrual basis.
(C) REPURCHASE AGREEMENTS:
Excelsior Fund may purchase portfolio securities from financial
institutions deemed to be creditworthy by the investment adviser subject to
the seller's agreement to repurchase and Excelsior Fund's agreement to
resell such securities at mutually agreed upon prices. Securities purchased
subject to such repurchase agreements are deposited with Excelsior Fund's
custodian or sub-custodian or are maintained in the Federal
Reserve/Treasury book-entry system and must have, at all times, an
aggregate market value of not less than 102% of the repurchase price
(including accrued interest).
If the value of the underlying security, including accrued interest,
falls below the value of 102% of the repurchase price plus accrued
interest, Excelsior Fund will require the seller to deposit additional
collateral by the next business day. Default or bankruptcy of the seller
may, however, expose the applicable Portfolio of Excelsior Fund to possible
delay in connection with the disposition of the underlying securities or
loss to the extent that proceeds from a sale of the underlying securities
were less than the repurchase price under the agreement.
(D) DIVIDENDS AND DISTRIBUTIONS TO SHAREHOLDERS:
Treasury Money Fund, Government Money Fund and Money Fund: Net investment
income dividends are declared daily and paid monthly. Net realized capital
gains, unless offset by any available capital loss carryforward, are
distributed to shareholders annually or more frequently to maintain a net
asset value of $1.00 per share.
15
<PAGE>
Short-Term Government Securities Fund, Intermediate-Term Managed Income
Fund and Managed Income Fund: Dividends from net investment income are
declared daily and paid monthly. Net realized capital gains, unless offset
by any available capital loss carryforward, are distributed to shareholders
at least annually.
Dividends and distributions are determined in accordance with Federal
income tax regulations which may differ from generally accepted accounting
principles. These differences are primarily due to differing treatments for
deferral of losses on wash sales and post-October losses.
In order to avoid a Federal excise tax, each Portfolio is required to
distribute certain minimum amounts of net realized capital gain and net
investment income for the respective periods ending October 31 and December
31 in each calendar year.
(E) FEDERAL TAXES:
It is the policy of Excelsior Fund that each Portfolio continue to
qualify as a regulated investment company, if such qualification is in the
best interest of the shareholders, by complying with the requirements of
the Internal Revenue Code applicable to regulated investment companies, and
by distributing substantially all of its taxable earnings to its
shareholders.
At March 31, 1996, the following Portfolios had approximate capital loss
carryforwards for Federal tax purposes available to offset future net
capital gains through the indicated expiration dates:
<TABLE>
<CAPTION>
EXPIRATION DATE MARCH 31,
---------------------------------
2001 2002 2003 2004 TOTAL
------- ------- ---------- ------ ---------
<S> <C> <C> <C> <C> <C>
Treasury Money Fund............. -- $15,000 -- $4,000 $ 19,000
Government Money Fund........... $12,000 -- $ 48,000 1,000 61,000
Money Fund...................... 14,000 -- 21,000 20,000 55,000
Short-Term Government Securities
Fund........................... -- -- 393,000 -- 393,000
Intermediate-Term Managed Income
Fund........................... 20,000 2,000 467,000 -- 489,000
Managed Income Fund............. -- -- 3,291,000 -- 3,291,000
</TABLE>
To the extent that such carryforwards are utilized, no capital gain
distributions will be made. During the year ended March 31, 1996, Short-
Term Government Securities Fund, Intermediate-Term Managed Income Fund and
Managed Income Fund utilized capital loss carryforwards for Federal tax
purposes totaling approximately $51,000, $794,000 and $1,694,000,
respectively.
Net capital losses incurred after October 31 and within the taxable year
are deemed to arise on the first business day of a Portfolio's next taxable
year. Treasury Money Fund, Government Money Fund and Money Fund incurred,
and elected to defer, net capital losses of approximately $17,000, $1,000
and $9,000, respectively, for the year ended March 31, 1996.
16
<PAGE>
At September 30, 1996, aggregate gross unrealized appreciation
(depreciation) for all securities for which there was an excess of value
over tax cost and aggregate gross unrealized depreciation for all
securities in which there was an excess of tax cost over value were as
follows:
<TABLE>
<CAPTION>
NET
TAX BASIS TAX BASIS UNREALIZED
UNREALIZED UNREALIZED APPRECIATION/
APPRECIATION (DEPRECIATION) (DEPRECIATION)
------------ -------------- --------------
<S> <C> <C> <C>
Treasury Money Fund.............. $ 7,159 $ (1,594) $ 5,565
Government Money Fund............ 2,360 (88,859) (86,499)
Money Fund....................... 4 (359,443) (359,439)
Short-Term Government Securities
Fund............................ 91,987 (77,049) 14,938
Intermediate-Term Managed Income
Fund............................ 508,867 (1,113,128) (604,261)
Managed Income Fund.............. 992,069 (695,885) 296,184
</TABLE>
(F) EXPENSE ALLOCATION:
Expenses directly attributable to a Portfolio are charged to that
Portfolio. Other expenses are allocated to the respective Portfolios based
on average daily net assets.
2. INVESTMENT ADVISORY FEE, ADMINISTRATION FEE AND RELATED PARTY TRANSACTIONS
United States Trust Company of New York ("U.S. Trust") serves as the
investment adviser to the Fund. For the services provided pursuant to the
Investment Advisory Agreements, U.S. Trust is entitled to receive a fee,
computed daily and paid monthly, at the annual rates of .25% of the average
daily net assets of Government Money Fund and Money Fund, .30% of the average
daily net assets of Treasury Money Fund and Short-Term Government Securities
Fund, .35% of the average daily net assets of Intermediate-Term Managed Income
Fund and .75% of the average daily net assets of Managed Income Fund.
U.S. Trust, Chase Global Funds Services Company ("CGFSC"), a subsidiary of
The Chase Manhattan Bank, and Federated Administrative Services (collectively,
the "Administrators") provide administrative services to Excelsior Fund. For
the services provided to the Portfolios, the Administrators are entitled
jointly to annual fees, computed daily and paid monthly, based on the combined
aggregate average daily net assets of Excelsior Fund (excluding the
international equity portfolios of Excelsior Fund and Excelsior Institutional
Trust) Excelsior Tax-Exempt Fund and Excelsior Institutional Trust, all of
which are affiliated investment companies, as follows: .200% of the first $200
million, .175% of the next $200 million, and .150% over $400 million.
Administration fees payable by each Portfolio of the three investment
companies are determined in proportion to the relative average daily net
assets of the respective Portfolios for the period paid. For the six months
ended September 30, 1996, Administration fees charged by U.S. Trust were as
follows:
<TABLE>
<S> <C>
Treasury Money Fund............................................... $16,630
Government Money Fund............................................. 28,294
Money Fund........................................................ 22,552
Short-Term Government Securities Fund............................. 1,652
Intermediate-Term Managed Income Fund ............................ 3,933
Managed Income Fund............................................... 10,372
</TABLE>
From time to time, as they may deem appropriate in their sole discretion, or
pursuant to applicable state expense limitations, U.S. Trust and the
Administrators may undertake to waive a portion or all of
17
<PAGE>
the fees payable to them and also may reimburse the Portfolios for a portion
of other expenses. In addition, until further notice to Excelsior Fund, U.S.
Trust intends to voluntarily waive fees and reimburse expenses to the extent
necessary for Short-Term Government Securities Fund and Intermediate-Term
Managed Income Fund to maintain an annual expense ratio of not more than .62%
and .72%, respectively. For the six months ended September 30, 1996, no
expenses were reimbursed pursuant to these voluntary limitations. In addition,
currently, U.S. Trust is voluntarily limiting its investment advisory fee to
.65% of the average daily net assets for Managed Income Fund. For the six
months ended September 30, 1996, U.S. Trust waived investment advisory fees
totaling $75,255 for Managed Income Fund.
Excelsior Fund has also entered into administrative servicing agreements
with various service organizations (which may include affiliates of U.S.
Trust) requiring them to provide administrative support services to their
customers owning shares of the Portfolios. As a consideration for the
administrative services provided by each service organization to its
customers, each Portfolio will pay the service organization an administrative
service fee at the annual rate of up to .40% of the average daily net asset
value of its shares held by the service organizations' customers. Such
services may include assisting in processing purchase, exchange and redemption
requests; transmitting and receiving funds in connection with customer orders
to purchase, exchange or redeem shares; and providing periodic statements.
Until further notice to Excelsior Fund, U.S. Trust and the Administrators have
voluntarily agreed to waive investment advisory and administration fees
payable by each Portfolio in an amount equal to the administrative service
fees payable by such Portfolio. For the six months ended September 30, 1996,
U.S. Trust and the Administrators waived investment advisory and
administration fees in amounts equal to the administrative service fees for
the Portfolios as set forth below:
<TABLE>
<CAPTION>
U.S. TRUST ADMINISTRATORS
---------- --------------
<S> <C> <C>
Treasury Money Fund............................. $ 46,323 $--
Government Money Fund........................... 74,534 171
Money Fund...................................... 100,997 3
Short-Term Government Securities Fund........... 10,855 1
Intermediate-Term Managed Income Fund........... 17,933 479
Managed Income Fund............................. 25,533 298
</TABLE>
Edgewood Services, Inc. (the "Distributor"), a wholly-owned subsidiary of
Federated Investors, serves as the sponsor and distributor of Excelsior Fund.
Certain sales of Excelsior Fund's shares are subject to a maximum sales charge
of 4.50% of the offering price. Shares of each Portfolio are sold on a
continual basis by the Distributor.
Each Director of Excelsior Fund receives an annual fee of $9,000, plus a
meeting fee of $1,500 for each meeting attended, and is reimbursed for
expenses incurred for attending meetings. The Chairman receives an additional
annual fee of $5,000.
3. PURCHASES AND SALES OF SECURITIES:
For the six months ended September 30, 1996, purchases and sales of
securities, excluding short-term investments, for the Portfolios aggregated:
<TABLE>
<CAPTION>
CONTRIBUTIONS
PURCHASES IN-KIND SALES
----------- ------------- -----------
<S> <C> <C> <C>
Short-Term Government Securities
Fund................................ $12,704,003 $4,941,525 $15,807,709
Intermediate-Term Managed Income
Fund................................ 47,684,318 -- 46,432,594
Managed Income Fund.................. 66,345,811 94,076,172 96,712,499
</TABLE>
18
<PAGE>
4. COMMON STOCK:
Excelsior Fund currently has authorized capital classified into forty classes
of shares, each representing interests in one of twenty separate portfolios.
Authorized capital for each Portfolio is as follows: with respect to each of
the Money and Government Money Funds, 1,500 million shares of Common Stock and
1,000 million shares of Common Stock--Special Series 1 (Trust Shares); with
respect to the Managed Income Fund, 375 million shares of Common Stock and 375
million shares of Common Stock--Special Series 1 (Trust Shares); with respect
to the Treasury Money Fund, 375 million shares of Common Stock and 500 million
shares of Common Stock--Special Series 1 (Trust Shares); and with respect to
each of the Short-Term Government Securities and Intermediate-Term Managed
Income Funds, 500 million shares of Common Stock and 500 million shares of
Common Stock--Special Series 1 (Trust Shares). At September 30, 1996, no shares
of Common Stock--Special Series 1 (Trust Shares) of any Portfolio were
outstanding.
Each share (irrespective of series designation) has a par value of $.001 and
represents an equal proportionate interest in the particular Portfolio with
other shares of the same Portfolio, and is entitled to such dividends and
distributions of taxable earnings on the assets belonging to such Portfolio as
are declared at the discretion of Excelsior Fund's Board of Directors. Since
Treasury Money Fund, Government Money Fund and Money Fund have sold, reinvested
and redeemed shares only at a constant net asset value of $1.00 per share, the
number of shares represented by such sales, reinvestments and redemptions is
the same as the amounts shown below for such transactions.
<TABLE>
<CAPTION>
TREASURY MONEY FUND
--------------------------------
SIX MONTHS ENDED YEAR ENDED
09/30/96 03/31/96
---------------- ---------------
<S> <C> <C>
Sold.......................................... $ 801,208,620 $ 1,701,110,327
Issued as reinvestment of dividends........... 446,006 1,034,118
Redeemed...................................... (774,814,392) (1,640,886,788)
------------- ---------------
Net Increase.................................. $ 26,840,234 $ 61,257,657
============= ===============
</TABLE>
<TABLE>
<CAPTION>
GOVERNMENT MONEY FUND
---------------------------------
SIX MONTHS ENDED YEAR ENDED
09/30/96 03/31/96
---------------- ---------------
<S> <C> <C>
Sold........................................ $ 1,310,655,287 $ 4,873,484,821
Issued as reinvestment of dividends......... 580,343 1,809,066
Redeemed.................................... (1,269,108,718) (5,139,596,498)
--------------- ---------------
Net Increase (Decrease)..................... $ 42,126,912 $ (264,302,611)
=============== ===============
</TABLE>
<TABLE>
<CAPTION>
MONEY FUND
--------------------------------
SIX MONTHS ENDED YEAR ENDED
09/30/96 03/31/96
---------------- ---------------
<S> <C> <C>
Sold......................................... $ 934,874,568 $ 5,492,501,117
Issued as reinvestment of dividends.......... 1,010,482 1,645,902
Redeemed..................................... (941,282,811) (5,924,408,321)
------------- ---------------
Net Decrease................................. $ (5,397,761) $ (430,261,302)
============= ===============
</TABLE>
19
<PAGE>
<TABLE>
<CAPTION>
SHORT-TERM GOVERNMENT SECURITIES FUND
---------------------------------------------------
SIX MONTHS ENDED YEAR ENDED
09/30/96 03/31/95
------------------------ -------------------------
SHARES AMOUNT SHARES AMOUNT
---------- ------------ ----------- ------------
<S> <C> <C> <C> <C>
Sold...................... 1,506,434 $ 10,450,447 2,308,143 $ 16,241,605
Issued as reinvestment of
dividends................ 22,717 157,540 15,812 111,089
Redeemed.................. (951,304) (6,607,840) (2,392,113) (16,748,551)
---------- ------------ ----------- ------------
Net Increase (Decrease)... 577,847 $ 4,000,147 (68,158) $ (395,857)
========== ============ =========== ============
<CAPTION>
INTERMEDIATE-TERM MANAGED INCOME FUND
---------------------------------------------------
SIX MONTHS ENDED YEAR ENDED
09/30/96 03/31/95
------------------------ -------------------------
SHARES AMOUNT SHARES AMOUNT
---------- ------------ ----------- ------------
<S> <C> <C> <C> <C>
Sold...................... 1,748,039 $12,154,479 4,190,183 $ 29,937,528
Issued as reinvestment of
dividends................ 19,018 131,864 44,834 319,660
Redeemed.................. (1,264,135) (8,794,921) (1,611,428) (11,489,634)
---------- ------------ ----------- ------------
Net Increase.............. 502,922 $ 3,491,422 2,623,589 $ 18,767,554
========== ============ =========== ============
<CAPTION>
MANAGED INCOME FUND
---------------------------------------------------
SIX MONTHS ENDED YEAR ENDED
09/30/96 03/31/95
------------------------ -------------------------
SHARES AMOUNT SHARES AMOUNT
---------- ------------ ----------- ------------
<S> <C> <C> <C> <C>
Sold...................... 12,511,367 $107,933,226 2,916,607 $ 26,267,294
Issued as reinvestment of
dividends................ 101,684 880,370 159,018 1,426,218
Redeemed.................. (1,581,708) (13,732,479) (3,276,024) (29,304,376)
---------- ------------ ----------- ------------
Net Increase (Decrease)... 11,031,343 $ 95,081,117 (200,399) $ (1,610,864)
========== ============ =========== ============
</TABLE>
5. ORGANIZATION COSTS
Excelsior Fund has borne all costs in connection with the initial
organization of new portfolios, including the fees for registering and
qualifying its shares for distribution under Federal and state securities
regulations. All such costs are being amortized on the straight-line basis over
periods of five years from the dates on which each Portfolio commenced
operations.
20
<PAGE>
[LOGO OF EXCELSIOR APPEARS HERE]
INTERNATIONAL EQUITY PORTFOLIOS
SEMI-ANNUAL REPORT
SEPTEMBER 30, 1996
<PAGE>
TABLE OF CONTENTS
<TABLE>
<CAPTION>
PAGE
----
<S> <C>
LETTER TO SHAREHOLDERS.................................................... 1
STATEMENTS OF ASSETS AND LIABILITIES...................................... 2
STATEMENTS OF OPERATIONS.................................................. 3
STATEMENTS OF CHANGES IN NET ASSETS....................................... 4
FINANCIAL HIGHLIGHTS -- SELECTED PER SHARE DATA AND RATIOS................ 6
PORTFOLIOS OF INVESTMENTS
International Fund....................................................... 8
Pacific/Asia Fund........................................................ 12
Pan European Fund........................................................ 16
Emerging Americas Fund................................................... 19
NOTES TO FINANCIAL STATEMENTS............................................. 22
</TABLE>
For shareholder account information, current price and yield quotations, or to
make an initial purchase or obtain a prospectus, call the appropriate telephone
number listed below:
. INITIAL PURCHASE AND PROSPECTUS INFORMATION AND SHAREHOLDER SERVICES 1-800-
446-1012
. CURRENT PRICE AND YIELD INFORMATION 1-800-233-9180
This report must be preceded or accompanied by a current prospectus.
Prospectuses containing more complete information including charges and ex-
penses regarding Excelsior Funds, Inc. and Excelsior Tax-Exempt Funds, Inc. may
be obtained by contacting the Funds at 1-800-446-1012.
Investors should read the current prospectus carefully prior to investing or
sending money.
Excelsior Funds, Inc. and Excelsior Tax-Exempt Funds, Inc. are sponsored and
distributed by Edgewood Services, Inc.
You may write to Excelsior Funds, Inc. and Excelsior Tax-Exempt Funds, Inc. at
the following address:
EXCELSIOR FUNDS, INC.
C/O CHASE GLOBAL FUNDS SERVICES COMPANY
P.O. BOX 2798
BOSTON, MA 02208-2798
SHARES IN THE FUNDS ARE NOT DEPOSITS OR OBLIGATIONS OF, OR GUARANTEED OR
ENDORSED BY, UNITED STATES TRUST COMPANY OF NEW YORK, ITS PARENT AND AFFILIATES
AND SHARES ARE NOT INSURED BY THE FEDERAL DEPOSIT INSURANCE CORPORATION, THE
FEDERAL RESERVE BOARD, OR ANY OTHER AGENCY. INVESTMENTS IN THE FUNDS INVOLVE
INVESTMENT RISKS, INCLUDING POSSIBLE LOSS OF PRINCIPAL. FUND SHARES ARE NOT
INSURED OR GUARANTEED BY THE U.S. GOVERNMENT.
<PAGE>
LETTER TO SHAREHOLDERS
- -------------------------------------------------------------------------------
Dear Shareholder:
As we close out our tenth anniversary year for the funds, we continue to
seek new opportunities to expand and improve our product offerings in response
to your investment needs. To this end, there have been some recent
developments which should be of interest to you and which I believe will
further enhance our fund family.
Our new alliance with the Excelsior Institutional Funds has enabled us to
offer two new funds. The Excelsior Institutional Optimum Growth Fund and
Institutional Value Equity Fund are both available to individual investors via
a second class of shares, Trust Shares. The Optimum Growth Fund combines a
mid- to large- capitalization growth strategy with a quantitative analysis in
the selection of complimentary securities from the Russell 1000 universe. The
Value Equity Fund applies a strict value-oriented philosophy to stock
selection and is managed by David Williams of U. S. Trust Company of New York,
who also manages the Excelsior Business & Industrial Restructuring Fund. In
addition to these funds, we now offer the California Tax-Exempt Income Fund.
This is an intermediate-term bond fund which intends to generate current
income which is exempt from state and federal taxes for California residents.
The extended Excelsior Funds Family now consists of fifteen domestic equity,
five international, eleven fixed-income, and five money market funds totaling
approximately $5.0 billion in assets. These funds have been designed to
provide a comprehensive range of investment options and offer investors, both
individual and institutional, an opportunity to allocate holdings in
accordance with their specific investment objectives.
Excelsior Fund shareholders are serviced by a dedicated team of
professionals. We recognize the importance of excellent shareholder service
and are committed to meeting your needs as investors in a proactive manner. We
appreciate the confidence which your investment represents in the funds and
strive to build on this confidence and expand our relationship with you as we
enter our second decade of operation.
Alfred C. Tannachion
Chairman of the Board and President
1
<PAGE>
EXCELSIOR FUNDS, INC.
STATEMENTS OF ASSETS AND LIABILITIES
AS OF SEPTEMBER 30, 1996 (UNAUDITED)
<TABLE>
<CAPTION>
PAN EMERGING
INTERNATIONAL PACIFIC/ASIA EUROPEAN AMERICAS
FUND FUND FUND FUND
------------- ------------ ----------- -----------
<S> <C> <C> <C> <C>
ASSETS:
Investments, at cost --
see accompanying
portfolios............. $101,622,373 $85,302,302 $48,131,796 $48,796,976
============ =========== =========== ===========
Investments, at value
(Note 1)............... $105,781,187 $84,954,324 $56,157,192 $52,920,300
Cash.................... -- 226,392 3,124 673
Foreign currency (cost
$10,644)............... -- -- -- 10,795
Dividends receivable.... 260,832 135,492 162,098 97,526
Interest receivable..... 3,694 7,995 11,942 12,075
Receivable for
investments sold....... 148,235 148,246 -- 0
Receivable for fund
shares sold............ 163,806 210,508 70,723 194,568
Withholding tax
receivable............. 92,266 1,222 140,709 --
Prepaid expenses........ 572 380 313 222
Unamortized organization
costs (Note 5)......... -- 5,253 5,253 5,265
------------ ----------- ----------- -----------
TOTAL ASSETS........... 106,450,592 85,689,812 56,551,354 53,241,424
LIABILITIES:
Payable for investments
purchased.............. -- -- -- 76,316
Payable for fund shares
redeemed............... 31,399 34,471 10,722 46,259
Investment advisory fees
payable (Note 2)....... 80,106 63,533 41,611 37,786
Due to custodian bank... 122,040 -- -- --
Accrued expenses and
other payables......... 64,324 76,466 40,886 37,223
------------ ----------- ----------- -----------
TOTAL LIABILITIES...... 297,869 174,470 93,219 197,584
------------ ----------- ----------- -----------
NET ASSETS............... $106,152,723 $85,515,342 $56,458,135 $53,043,840
============ =========== =========== ===========
NET ASSETS consist of:
Undistributed
(distributions in
excess of) net
investment income...... $ 280,473 $ 379,144 $ 745,047 $ (78,003)
Accumulated net realized
gain (loss) on
investments and foreign
currency translations.. 2,489,885 2,696,562 648,664 (7,633,038)
Unrealized appreciation
(depreciation) of
investments and foreign
currency translations.. 4,157,340 (349,948) 8,027,408 4,123,197
Par value (Note 4)...... 9,800 9,030 5,890 6,489
Paid in capital in
excess of par value.... 99,215,225 82,780,554 47,031,126 56,625,195
------------ ----------- ----------- -----------
TOTAL NET ASSETS......... $106,152,723 $85,515,342 $56,458,135 $53,043,840
============ =========== =========== ===========
Shares of Common Stock
Outstanding............. 9,799,769 9,030,406 5,890,180 6,488,956
NET ASSET VALUE PER
SHARE................... $10.83 $9.47 $9.59 $8.17
====== ===== ===== =====
</TABLE>
See Notes to Financial Statements
2
<PAGE>
EXCELSIOR FUNDS, INC.
STATEMENTS OF OPERATIONS
SIX MONTHS ENDED SEPTEMBER 30, 1996 (UNAUDITED)
<TABLE>
<CAPTION>
PAN EMERGING
INTERNATIONAL PACIFIC/ASIA EUROPEAN AMERICAS
FUND FUND FUND FUND
------------- ------------ ---------- -----------
<S> <C> <C> <C> <C>
INVESTMENT INCOME:
Dividend income......... $ 1,623,044 $ 984,740 $1,276,643 $ 521,438
Interest income......... 17,021 131,064 69,430 54,383
Less: Foreign taxes
withheld............... (203,719) (50,678) (180,298) (31,977)
----------- ----------- ---------- -----------
TOTAL INCOME........... 1,436,346 1,065,126 1,165,775 543,844
EXPENSES:
Investment advisory fees
(Note 2)............... 529,781 416,943 260,511 242,322
Administrators' fees
(Note 2)............... 105,956 83,389 52,102 48,464
Administrative service
fees (Note 2).......... 46,166 30,430 19,313 19,559
Shareholder servicing
agent fees............. 27,804 20,569 15,462 15,278
Custodian fees.......... 58,972 54,981 36,097 35,188
Registration and filing
fees................... 6,753 3,723 4,886 4,561
Legal and audit fees.... 8,265 5,846 4,172 3,755
Directors' fees and
expenses (Note 2)...... 2,138 1,681 1,049 937
Shareholder reports..... 8,418 4,699 4,156 3,723
Amortization of
organization costs
(Note 5)............... -- 2,094 2,094 2,082
Miscellaneous expenses.. 2,459 1,358 1,518 1,165
----------- ----------- ---------- -----------
TOTAL EXPENSES......... 796,712 625,713 401,360 377,034
----------- ----------- ---------- -----------
Fees waived by
investment adviser and
administrators
(Note 2)............... (46,166) (30,430) (19,313) (19,559)
----------- ----------- ---------- -----------
NET EXPENSES........... 750,546 595,283 382,047 357,475
----------- ----------- ---------- -----------
NET INVESTMENT INCOME.... 685,800 469,843 783,728 186,369
----------- ----------- ---------- -----------
REALIZED AND UNREALIZED
GAIN (LOSS) ON
INVESTMENTS (NOTE 1):
Net realized gain
(loss):
Security transactions.. 2,570,675 3,015,167 691,882 (995,097)
Foreign currency
transactions.......... (34,807) (55,143) (37,801) (33,934)
----------- ----------- ---------- -----------
Total net realized gain
(loss)................. 2,535,868 2,960,024 654,081 (1,029,031)
Change in unrealized
appreciation
(depreciation) of
investments and foreign
currency translations
during the period...... (3,015,978) (5,225,044) 1,678,033 5,540,816
----------- ----------- ---------- -----------
NET REALIZED AND
UNREALIZED GAIN (LOSS)
ON INVESTMENTS.......... (480,110) (2,265,020) 2,332,114 4,511,785
----------- ----------- ---------- -----------
NET INCREASE (DECREASE)
IN NET ASSETS RESULTING
FROM OPERATIONS......... $ 205,690 $(1,795,177) $3,115,842 $ 4,698,154
=========== =========== ========== ===========
</TABLE>
See Notes to Financial Statements
3
<PAGE>
EXCELSIOR FUNDS, INC.
STATEMENTS OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
PAN EMERGING
INTERNATIONAL PACIFIC/ASIA EUROPEAN AMERICAS
FUND FUND FUND FUND
------------- ------------ ----------- -----------
<S> <C> <C> <C> <C>
SIX MONTHS ENDED SEPTEM-
BER 30, 1996 (UNAU-
DITED)
Net investment income... $ 685,800 $ 469,843 $ 783,728 $ 186,369
Net realized gain (loss)
on investments and
foreign currency
transactions........... 2,535,868 2,960,024 654,081 (1,029,031)
Change in unrealized
appreciation
(depreciation) of
investments and foreign
currency translations
during the period...... (3,015,978) (5,225,044) 1,678,033 5,540,816
------------ ----------- ----------- -----------
Net increase (decrease)
in net assets resulting
from operations........ 205,690 (1,795,177) 3,115,842 4,698,154
Distributions to share-
holders:
From net investment in-
come.................. (80,838) -- -- (25,917)
From net realized gain
on investments........ (1,178,676) (1,001,401) (878,862) --
Increase in net assets
from fund share
transactions (Note 4).. 9,356,051 12,119,667 6,305,311 5,211,885
------------ ----------- ----------- -----------
Net increase in net as-
sets................... 8,302,227 9,323,089 8,542,291 9,884,122
NET ASSETS:
Beginning of period.... 97,850,496 76,192,253 47,915,844 43,159,718
------------ ----------- ----------- -----------
End of period (1)...... $106,152,723 $85,515,342 $56,458,135 $53,043,840
============ =========== =========== ===========
YEAR ENDED MARCH 31,
1996
Net investment income... $ 663,789 $ 649,969 $ 569,564 $ 399,810
Net realized gain (loss)
on investments and for-
eign currency transac-
tions.................. 1,761,069 1,080,727 2,226,541 (2,681,651)
Change in unrealized
appreciation
(depreciation) of
investments and foreign
currency translations
during the year........ 6,821,262 7,511,232 4,458,964 9,542,153
------------ ----------- ----------- -----------
Net increase in net
assets resulting from
operations............. 9,246,120 9,241,928 7,255,069 7,260,312
Distributions to share-
holders:
From net investment in-
come.................. (644,347) (572,461) (503,212) (177,450)
In excess of net
investment income..... (91,134) (86,949) -- (211,904)
From net realized gain
on investments........ (548,777) (97,072) (1,786,988) --
Increase in net assets
from fund share
transactions (Note 4).. 25,836,676 20,089,608 2,974,013 8,945,030
------------ ----------- ----------- -----------
Net increase in net as-
sets................... 33,798,538 28,575,054 7,938,882 15,815,988
NET ASSETS:
Beginning of year...... 64,051,958 47,617,199 39,976,962 27,343,730
------------ ----------- ----------- -----------
End of year (2)........ $ 97,850,496 $76,192,253 $47,915,844 $43,159,718
============ =========== =========== ===========
</TABLE>
(1) Including undistributed (distributions in excess of) net investment income
of $280,473 for International Fund, $379,144 for Pacific/Asia Fund,
$745,047 for Pan European Fund and $(78,003) for Emerging Americas Fund.
(2) Including distributions in excess of net investment income of $324,489 for
International Fund, $90,699 for Pacific/Asia Fund, $38,681 for Pan European
Fund and $238,455 for Emerging Americas Fund.
See Notes to Financial Statements
4
<PAGE>
EXCELSIOR FUNDS, INC.
FINANCIAL HIGHLIGHTS -- SELECTED PER SHARE DATA AND RATIOS
For a fund share outstanding throughout each period.
<TABLE>
<CAPTION>
NET ASSET NET NET REALIZED DIVIDENDS DIVIDENDS
VALUE, INVESTMENT AND UNREALIZED TOTAL FROM FROM NET IN EXCESS OF
BEGINNING INCOME GAIN (LOSS) ON INVESTMENT INVESTMENT NET INVESTMENT
OF PERIOD (LOSS) INVESTMENTS OPERATIONS INCOME INCOME
--------- ---------- -------------- ---------- ---------- --------------
<S> <C> <C> <C> <C> <C> <C>
INTERNATIONAL FUND -- (7/21/87*)
Year Ended March 31,
1992................... $8.75 $ 0.08 $(0.45) $(0.37) $(0.11) $0.00
1993................... 8.27 0.15 0.25 0.40 (0.01) 0.00
1994................... 8.66 0.05 1.88 1.93 (0.02) (0.12)
1995................... 10.44 0.10 (0.29) (0.19) 0.00 (0.11)
1996................... 9.82 0.10 1.15 1.25 (0.08) (0.01)
Six Months Ended
September 30, 1996
(Unaudited)........... 10.91 0.07 (0.01) 0.06 (0.01) 0.00
PACIFIC/ASIA FUND -- (12/31/92*)
Year Ended March 31,
1993................... $7.00 $ 0.00+++ $ 0.54 $ 0.54 $ 0.00 $0.00
1994................... 7.54 0.08 2.81 2.89 (0.05) (0.06)
1995................... 10.04 0.08 (0.58) (0.50) (0.03) (0.23)
1996................... 8.45 0.12 1.33 1.45 (0.09) (0.01)
Six Months Ended
September 30, 1996
(Unaudited)........... 9.78 0.05 (0.24) (0.19) 0.00 0.00
PAN EUROPEAN FUND -- (12/31/92*)
Year Ended March 31,
1993................... $7.00 $(0.00)+++ $ 0.34 $ 0.34 $ 0.00 $0.00
1994................... 7.34 0.03 0.70 0.73 0.00 (0.04)
1995................... 8.03 0.09 0.25 0.34 (0.09) 0.00
1996................... 8.19 0.11 1.35 1.46 (0.10) 0.00
Six Months Ended
September 30, 1996
(Unaudited)........... 9.19 0.13 0.43 0.56 0.00 0.00
EMERGING AMERICAS FUND -- (12/31/92*)
Year Ended March 31,
1993................... $7.00 $(0.00)+++ $ 0.12 $ 0.12 $ 0.00 $0.00
1994................... 7.12 0.05 2.24 2.29 (0.03) (0.02)
1995................... 9.30 0.01 (2.56) (2.55) 0.00 (0.17)
1996................... 5.86 0.10 1.49 1.59 (0.04) (0.04)
Six Months Ended
September 30, 1996
(Unaudited)........... 7.37 0.03 0.77 0.80 0.00+++ 0.00
</TABLE>
* Commencement of operations.
** Not annualized.
*** Annualized.
+ Total return data does not reflect the sales load payable on purchases of
Fund shares.
++ Expense ratios before waiver of fees and reimbursement of expenses (if any)
by adviser and administrators.
+++ Amounts represents less than $0.01 per share.
# Portfolio turnover calculation excludes in-kind transfers, if any, of
securities. See Note 3.
## For fiscal years beginning on or after September 1, 1995 a portfolio is
required to disclose the average commission rate per share it paid for
portfolio trades on which commissions were charged.
See Notes to Financial Statements
5
<PAGE>
<TABLE>
<CAPTION>
DISTRIBUTIONS
DISTRIBUTIONS IN EXCESS RATIO OF NET RATIO OF GROSS RATIO OF NET
FROM NET OF NET NET ASSETS, OPERATING OPERATING INVESTMENT
REALIZED REALIZED NET ASSET END OF EXPENSES EXPENSES INCOME (LOSS)
GAIN ON GAIN ON TOTAL VALUE, END TOTAL PERIOD TO AVERAGE TO AVERAGE TO AVERAGE
INVESTMENTS INVESTMENTS DISTRIBUTIONS OF PERIOD RETURN+ (000) NET ASSETS NET ASSETS++ NET ASSETS
- ------------- ------------- ------------- ---------- ------- ----------- ------------ -------------- -------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
$ 0.00 $0.00 $(0.11) $8.27 (4.35)% $46,921 1.52% 1.52% 0.94 %
0.00 0.00 (0.01) 8.66 4.85 % 30,374 1.50% 1.50% 1.27 %
(0.01) 0.00 (0.15) 10.44 22.34 % 55,737 1.53% 1.53% 0.18 %
(0.32) 0.00 (0.43) 9.82 (1.93)% 64,052 1.47% 1.53% 0.71 %
(0.07) 0.00 (0.16) 10.91 12.77 % 97,850 1.40% 1.50% 0.82 %
(0.13) 0.00 (0.14) 10.83 0.58 %** 106,153 1.42%*** 1.50%*** 1.35 %***
$ 0.00 $0.00 $0.00 $7.54 7.71 % $ 9,665 1.67%*** 2.00%*** 0.27 %***
(0.28) 0.00 (0.39) 10.04 38.11 % 53,027 1.53% 1.77% 0.54 %
(0.83) 0.00 (1.09) 8.45 (5.89)% 47,617 1.47% 1.52% 0.85 %
(0.02) 0.00 (0.12) 9.78 17.22 % 76,192 1.43% 1.51% 1.12 %
(0.12) 0.00 (0.12) 9.47 (1.99)%** 85,515 1.43%*** 1.50%*** 1.13 %***
$ 0.00 $0.00 $0.00 $7.34 4.86 % $ 3,797 1.67%*** 3.13%*** (0.33)%***
0.00 0.00 (0.04) 8.03 10.05 % 36,675 1.61% 1.72% 0.06 %
(0.09) 0.00 (0.18) 8.19 4.33 % 39,977 1.51% 1.57% 1.11 %
(0.36) 0.00 (0.46) 9.19 18.25 % 47,916 1.46% 1.55% 1.28 %
(0.16) 0.00 (0.16) 9.59 6.21 %** 56,458 1.47%*** 1.54%*** 3.01 %***
$ 0.00 $0.00 $0.00 $7.12 1.71 % $ 3,830 1.67%*** 2.56%*** (0.04)%***
(0.06) 0.00 (0.11) 9.30 32.25 % 39,282 1.49% 1.71% 0.29 %
0.00 (0.72) (0.89) 5.86 (30.47)% 27,344 1.50% 1.57% 0.06 %
0.00 0.00 (0.08) 7.37 27.29 % 43,160 1.48% 1.57% 1.12 %
0.00 0.00 0.00+++ 8.17 10.91 %** 53,044 1.46%*** 1.54%*** 0.76 %***
<CAPTION>
DISTRIBUTIONS
FROM NET AVERAGE
REALIZED PORTFOLIO FEE BROKER
GAIN ON TURNOVER WAIVERS COMMISSION
INVESTMENTS RATE# (NOTE 2) RATE##
- -------------- ---------- ---------- ----------
<S> <C> <C> <C>
$ 0.00 32% $0.00 N/A
0.00 31% 0.00 N/A
(0.01) 64% 0.00+++ N/A
(0.32) 66% 0.01 N/A
(0.07) 39% 0.01 N/A
(0.13) 50%*** 0.00 $0.0209
$ 0.00 1% $0.00+++ N/A
(0.28) 68% 0.04 N/A
(0.83) 69% 0.01 N/A
(0.02) 29% 0.01 N/A
(0.12) 53%*** 0.00 $0.0121
$ 0.00 9% $0.02 N/A
0.00 30% 0.05 N/A
(0.09) 47% 0.00+++ N/A
(0.36) 42% 0.01 N/A
(0.16) 21%*** 0.00 $0.0498
$ 0.00 76% $0.02 N/A
(0.06) 51% 0.03 N/A
0.00 69% 0.01 N/A
0.00 54% 0.01 N/A
0.00 34%*** 0.00 $0.0002
</TABLE>
See Notes to Financial Statements
6
<PAGE>
EXCELSIOR FUNDS, INC.
PORTFOLIO OF INVESTMENTS SEPTEMBER 30, 1996 (UNAUDITED)
INTERNATIONAL FUND
<TABLE>
<CAPTION>
VALUE
SHARES (NOTE 1)
------- -----------
<S> <C> <C>
COMMON STOCKS -- 98.70%
JAPAN -- 34.68%
146,000 Asahi Chemical Industry Co., Ltd. ....................... $ 948,647
500 Asatsu Inc. ............................................. 19,717
35,000 Chiyoda Corp. ........................................... 379,548
60,000 Dai-Ichi Kangyo Bank Ltd. ............................... 1,010,934
139 DDI Corp. ............................................... 1,122,414
171 East Japan Railway Co. .................................. 824,503
100,000 Fujisawa Pharmaceutical Co. ............................. 949,991
76,000 Hitachi Construction Machinery Co. ...................... 871,841
100,000 Hitachi Ltd. ............................................ 967,915
178,000 Hitachi Zosen Corp. ..................................... 907,707
127,000 Honshu Paper Co., Ltd. .................................. 755,763
47,000 Industrial Bank of Japan................................. 1,048,844
58,000 Isetan Co. .............................................. 795,304
17,000 Ito-Yokado Co., Ltd. .................................... 964,420
84,000 Kajima Corp. ............................................ 775,408
80,000 Kamigumi Co., Ltd. ...................................... 673,956
25,000 Katokichi Co., Ltd. ..................................... 539,971
196,000 Kumagai Gumi Co., Ltd. .................................. 702,635
15,000 Kyocera Corp. ........................................... 1,068,740
119,000 Long-Term Credit Bank of Japan........................... 856,399
182,000 Marubeni Corp. .......................................... 946,048
63,000 Mitsubishi Estate Co., Ltd. ............................. 863,864
115,000 Mitsubishi Heavy Industries Ltd. ........................ 934,800
31,000 Murata Manufacturing Co., Ltd. .......................... 1,105,754
275,000 +Navix Line Ltd. ........................................ 704,875
70,000 Nikko Securities Co. .................................... 746,550
106 Nippon Telephone & Telegraph Corp. ...................... 778,993
155,000 Nippon Yusen............................................. 805,700
275,000 +NKK Corp. .............................................. 704,875
46,000 Nomura Securities Co., Ltd. ............................. 845,134
35,000 Omron Corp. ............................................. 655,584
48,000 Onward Kashiyama Co., Ltd. .............................. 671,088
73,000 +Pacific Metals Co., Ltd. ............................... 304,875
48,000 Pioneer Electronic Corp. ............................... 980,821
74,000 Ricoh Co., Ltd. ......................................... 756,050
57,000 Sanwa Bank Ltd. ......................................... 1,026,797
85,000 Sekisui Chemical Co., Inc. .............................. 1,005,557
121,000 Sumitomo Corp. .......................................... 1,059,482
47,000 Sumitomo Electric Industries............................. 644,470
166,000 +Sumitomo Heavy Industries............................... 632,282
74,000 Sumitomo Trust & Banking Co., Ltd. ...................... 928,482
73,000 Tokio Marine & Fire Insurance Co. ....................... 863,596
64,000 Tokyo Broadcasting System, Inc. ........................ 1,038,179
99,000 Toray Industries Inc. .................................. 626,403
109,000 Toyo Trust & Banking Ltd. ............................... 996,415
-----------
36,811,331
-----------
</TABLE>
<TABLE>
<CAPTION>
VALUE
SHARES (NOTE 1)
------- -----------
<S> <C> <C>
COMMON STOCKS -- (CONTINUED)
UNITED KINGDOM &
POSSESSIONS--11.87%
86,000 Allied Domecq plc......................................... $ 604,231
67,307 BAT Industries plc........................................ 448,671
172,000 British Gas plc........................................... 536,945
38,000 British Petroleum Co. plc................................. 394,235
108,000 British Telecommunications plc............................ 602,479
147,161 BTR plc................................................... 622,900
160,000 Caradon plc............................................... 618,408
72,556 Carlton Communications plc................................ 548,377
88,218 Dalgety plc............................................... 421,032
36,190 General Accident plc...................................... 385,651
36,942 General Electric Co. plc.................................. 228,626
37,000 Glaxo Holdings plc........................................ 579,844
40,000 Granada Group plc......................................... 536,100
115,000 Inchcape plc.............................................. 488,569
46,204 Johnson Matthey plc....................................... 439,584
58,000 Land Securities plc....................................... 632,585
38,308 London Electricity plc.................................... 367,758
55,000 National Westminster Bank plc............................. 584,374
55,000 Peninsular & Oriental Steam plc........................... 535,317
111,000 Sainsbury (J) plc......................................... 641,794
26,000 Shell Transportation & Trading Co. plc.................... 396,676
58,000 Smith (W H) Group plc..................................... 429,287
37,864 Thai Euro Fund IDR........................................ 1,116,988
221,000 Wimpey (George) plc....................................... 444,379
-----------
12,604,810
-----------
FRANCE--6.12%
7,535 Accor S.A................................................. 931,202
8,313 Compagnie de Saint Gobain................................. 1,127,186
10,199 Credit Local de France.................................... 869,261
9,200 Elf Aquitaine............................................. 719,783
15,080 Lafarge Coppee S.A........................................ 889,465
20,593 Michelin CGDE, Class B (Registered)....................... 1,051,091
11,487 Total S.A., Class B....................................... 904,497
-----------
6,492,485
-----------
GERMANY--6.07%
32,870 Bayer AG.................................................. 1,200,050
3,128 Mannesmann AG............................................. 1,171,924
28,311 Siemens AG................................................ 1,489,008
23,801 Veba AG................................................... 1,246,348
3,605 Volkswagen AG............................................. 1,341,659
-----------
6,448,989
-----------
HONG KONG--5.80%
574,000 Amoy Properties Ltd....................................... 668,063
174,000 Bank of East Asia Ltd..................................... 640,169
125,000 Cheung Kong Holdings Ltd.................................. 961,812
248,500 Hong Kong Electric Holdings Ltd........................... 803,396
145,000 Hutchison Whampoa......................................... 975,067
115,000 Swire Pacific Ltd., Class A............................... 1,029,866
260,000 Wharf (Holdings) Ltd...................................... 1,075,936
-----------
6,154,309
-----------
</TABLE>
See Notes to Financial Statements
7
<PAGE>
EXCELSIOR FUNDS, INC.
PORTFOLIO OF INVESTMENTS SEPTEMBER 30, 1996 (UNAUDITED)
INTERNATIONAL FUND -- (CONTINUED)
<TABLE>
<CAPTION>
VALUE
SHARES (NOTE 1)
------- -----------
<S> <C> <C>
COMMON STOCKS -- (CONTINUED)
NETHERLANDS -- 5.74%
16,951 ABN Amro Holdings N.V. .... $ 939,906
13,575 Akzo Nobel N.V. ........... 1,645,022
25,392 Koninklijke KNP N.V. ...... 596,412
13,600 Philips Electronics N.V. .. 491,078
26,000 Vendex International N.V. . 1,013,263
71,849 Verenigde Nederlandse
Uitgeversbedrijven Verenigd
Bezit N.V. ................ 1,406,335
-----------
6,092,016
-----------
SWITZERLAND -- 5.30%
1,013 Nestle AG (Registered)....... 1,129,055
209 Roche Holding AG........... 1,538,799
1,507 Sandoz AG (Registered)....... 1,809,409
1,868 Winterthur Schweizerische
Versicherungs.............. 1,152,700
-----------
5,629,963
-----------
BRAZIL -- 3.48%
25,642 Cia Vale do Rio Doce ADR... 508,548
81,477 Eletrobras ADR............. 1,079,570
26,829 Telebras ADR............... 2,106,077
-----------
3,694,195
-----------
SWEDEN -- 2.53%
51,337 Ericsson, Class B.......... 1,294,236
64,882 Volvo AB, Class B.......... 1,395,744
-----------
2,689,980
-----------
MEXICO -- 2.29%
42,405 +Carso Global Telecom ADR.. 221,290
378,120 +Cifra S.A. ADR............ 542,602
82,325 +Cifra S.A., Series B...... 118,682
106,000 +Desaroios Sociedad Fomento
Industries, Series B....... 595,521
36,549 +Empresas ICA Sociedad
Controladora S.A. ADR...... 557,372
42,405 ++Grupo Carso S.A. ADR..... 393,158
-----------
2,428,625
-----------
ITALY -- 2.14%
204,053 Fiat S.p.A. ............... 573,815
233,205 Italgas S.p.A. ............ 873,370
373,312 Telecom Italia S.p.A. ..... 830,264
-----------
2,277,449
-----------
</TABLE>
<TABLE>
<CAPTION>
VALUE
SHARES (NOTE 1)
--------- -----------
<S> <C> <C>
COMMON STOCKS -- (CONTINUED)
AUSTRALIA -- 2.12%
117,778 ANZ Banking Group Ltd. ................................. $ 673,821
41,238 Broken Hill Proprietary Co., Ltd. ...................... 528,634
320,955 MIM Holdings Ltd. ...................................... 391,117
65,000 News Corp., Ltd. ....................................... 341,012
48,784 Western Mining Corp. Holdings Ltd. ..................... 313,841
-----------
2,248,425
-----------
TAIWAN -- 2.08%
60 +Formosa Fund IDR....................................... 525,000
1,220,000 +GP Taiwan Index Fund................................... 1,183,400
60 +Taipei Fund IDR........................................ 504,000
-----------
2,212,400
-----------
SPAIN -- 1.36%
20,654 Repsol S.A. ............................................ 679,344
41,036 Telefonica de Espana S.A. .............................. 762,828
-----------
1,442,172
-----------
MALAYSIA -- 1.33%
83,800 Malayan Banking Bhd. ................................... 832,683
164,000 Tenaga Nasional Bhd. ................................... 575,921
-----------
1,408,604
-----------
KOREA -- 1.22%
13 +Korea International Trust.............................. 533,000
74,640 +Schroder Korea Fund.................................... 765,060
-----------
1,298,060
-----------
SINGAPORE -- 1.09%
63,783 Development Bank of Singapore Ltd. (Foreign).............. 783,864
22,342 +Singapore Sesdaq Fund.................................. 368,643
-----------
1,152,507
-----------
CHILE -- 0.92%
6,813 Enersis S.A. ADR........................................ 219,719
10,362 Genesis Chile Fund Ltd. (Participating Certificates)...... 423,547
5,875 Sociedad Quimica y Minera de Chile ADR.................. 328,266
-----------
971,532
-----------
ARGENTINA -- 0.75%
7,057 Telecom Argentina ADR................................... 284,891
22,128 YPF S.A. ADR............................................ 506,178
-----------
791,069
-----------
</TABLE>
See Notes to Financial Statements
8
<PAGE>
EXCELSIOR FUNDS, INC.
PORTFOLIO OF INVESTMENTS SEPTEMBER 30, 1996 (UNAUDITED)
INTERNATIONAL FUND -- (CONTINUED)
<TABLE>
<CAPTION>
VALUE
SHARES (NOTE 1)
------- ------------
<S> <C> <C>
COMMON STOCKS -- (CONTINUED)
DENMARK -- 0.67%
15,000 Tele Danmark AS, Class B.. $ 711,604
------------
AUSTRIA -- 0.66%
7,007 OMV AG.................... 704,582
------------
BELGIUM -- 0.48%
1,485 Generale de Banque S.A. .. 512,966
------------
TOTAL COMMON STOCKS
(Cost $100,792,632)....... 104,778,073
------------
PREFERRED STOCK -- 0.88%
FRANCE -- 0.88%
8,935 Legrand S.A. (Cost
$809,734)................. 934,605
------------
<CAPTION>
NO. OF
RIGHTS
-------
<S> <C> <C>
RIGHTS -- 0.04%
JAPAN -- 0.04%
3,760 x/+Industrial Bank of
Japan, expiring 10/18/96.. 38,416
BELGIUM -- 0.00%
149 x/+Generale de Banque,
expiring 10/04/96......... 3,073
------------
TOTAL RIGHTS
(Cost $0)................... 41,489
------------
</TABLE>
<TABLE>
<CAPTION>
NO. OF VALUE
WARRANTS (NOTE 1)
-------- ------------
<S> <C> <C>
WARRANTS -- 0.03%
UNITED KINGDOM & POSSESSIONS -- 0.03%
30,565 +Angerstein Underwriting Trust plc, expiring 8/31/00... $ 15,305
3,031 +BTR plc, expiring 10/18/96............................ 593
3,031 +BTR plc, expiring 11/30/97............................ 1,375
1,751 +BTR plc, expiring 11/26/98............................ 199
7,641 +Syndicate Capital Trust plc, expiring 10/31/99........ 3,467
3,475 +Thai Euro Fund IDR (Bonus)............................ 6,081
------------
TOTAL WARRANTS
(Cost $20,007)......................................... 27,020
------------
</TABLE>
<TABLE>
<S> <C> <C>
TOTAL INVESTMENTS
(Cost $101,622,373*)....................................... 99.65% $105,781,187
OTHER ASSETS &
LIABILITIES (NET).......................................... 0.35 371,536
------ ------------
NET ASSETS................................................. 100.00% $106,152,723
====== ============
</TABLE>
- --------
* --Aggregate cost for Federal tax and book purposes.
+ --Non-income producing.
++ --Security exempt from registration under Rule 144A of the Securities Act
of 1933. These securities may be resold in transactions exempt from
registration, normally to qualified institutional buyers. At September 30,
1996 these securities amounted to $393,158, or 0.37% of net assets.
x --Security is valued at fair value. See Note 1 to financial statements.
ADR --American Depositary Receipt.
IDR --International Depositary Share.
See Notes to Financial Statements
9
<PAGE>
EXCELSIOR FUNDS, INC.
PORTFOLIO OF INVESTMENTS SEPTEMBER 30, 1996 (UNAUDITED)
INTERNATIONAL FUND -- (CONTINUED)
At September 30, 1996, sector diversification of the Fund's investment
portfolio was as follows:
<TABLE>
<CAPTION>
% OF
NET MARKET
SECTOR DIVERSIFICATION ASSETS VALUE
---------------------- ------ ------------
<S> <C> <C>
Financial............................................... 27.51% $ 29,207,435
Consumer Cyclical....................................... 17.01 18,056,985
Capital Goods........................................... 12.38 13,139,333
Utilities............................................... 12.13 12,877,042
Raw/Intermediate Materials.............................. 11.91 12,637,297
Technology.............................................. 5.80 6,155,949
Consumer Staples........................................ 5.21 5,532,214
Transportation.......................................... 4.31 4,574,218
Energy.................................................. 3.39 3,600,714
------ ------------
Total Investments....................................... 99.65% $105,781,187
Other Assets and Liabilities (Net)...................... 0.35 371,536
------ ------------
Net Assets.............................................. 100.00% $106,152,723
====== ============
</TABLE>
See Notes to Financial Statements
10
<PAGE>
EXCELSIOR FUNDS, INC.
PORTFOLIO OF INVESTMENTS SEPTEMBER 30, 1996 (UNAUDITED)
PACIFIC/ASIA FUND
<TABLE>
<CAPTION>
VALUE
SHARES (NOTE 1)
---------- -----------
<S> <C> <C>
COMMON STOCKS -- 96.58%
HONG KONG -- 29.96%
1,210,000 Amoy Properties Ltd. ................................. $ 1,408,287
379,200 Bank of East Asia Ltd. ............................... 1,395,127
490,000 Cathay Pacific Airways Ltd. .......................... 795,249
335,000 Cheung Kong Holdings Ltd. ............................ 2,577,656
260,000 Citic Pacific Ltd. ................................... 1,176,805
220,000 Dah Sing Financial Group.............................. 773,846
1,610,000 Guangdong Investments Ltd. ........................... 1,134,712
147,400 Hang Seng Bank........................................ 1,563,056
3,538,000 Harbour Ring International Holdings................... 274,519
220,000 Henderson China Holding Ltd. ......................... 500,724
468,000 Hong Kong & China Gas Co., Ltd. ...................... 795,857
416,500 Hong Kong Electric Holdings Ltd. ..................... 1,346,537
763,000 Hong Kong Telecom..................................... 1,381,388
42,800 HSBC Holdings plc..................................... 794,253
286,000 Hutchison Whampoa..................................... 1,923,236
191,000 Jardine Strategic Holdings Ltd. ...................... 607,380
179,000 Mandarin Oriental International Ltd. ................. 264,920
300,000 New World Development Co., Ltd. ...................... 1,575,109
954,000 Qingling Motors Co., Class H.......................... 367,027
117,500 Sun Hung Kai Properties Ltd. ......................... 1,249,790
162,000 Swire Pacific Ltd., Class A........................... 1,450,768
470,000 Wharf (Holdings) Ltd. ................................ 1,944,962
1,178,000 Zhenhai Refining & Chemical Co., Ltd., Class H ....... 319,910
-----------
25,621,118
-----------
JAPAN -- 18.01%
49,000 Asahi Chemical Industry Co., Ltd. .................... 318,382
35,000 Chiyoda Corp. ........................................ 379,548
27,000 Dai-Ichi Kangyo Bank Ltd. ............................ 454,920
45 DDI Corp. ............................................ 363,372
75 East Japan Railway Co. ............................... 361,624
29,000 Fujisawa Pharmaceutical Co. .......................... 275,498
52,000 Honshu Paper Co., Ltd. ............................... 309,446
22,000 Industrial Bank of Japan.............................. 490,948
32,000 Isetan Co. ........................................... 438,788
7,000 Ito-Yokado Co., Ltd. ................................. 397,114
36,000 Kajima Corp. ......................................... 332,318
22,000 Kamigumi Co., Ltd. ................................... 185,338
13,000 Katokichi Co., Ltd. .................................. 280,785
113,000 Kumagai Gumi Co., Ltd. ............................... 405,091
6,000 Kyocera Corp. ........................................ 427,496
22,000 Long-Term Credit Bank of Japan........................ 158,326
67,000 Marubeni Corp. ....................................... 348,270
29,000 Mitsubishi Estate Co., Ltd. .......................... 397,652
41,000 Mitsubishi Heavy Industries Ltd. ..................... 333,277
</TABLE>
<TABLE>
<CAPTION>
VALUE
SHARES (NOTE 1)
---------- -----------
<S> <C> <C>
COMMON STOCKS -- (CONTINUED)
JAPAN -- (CONTINUED)
37,000 Mitsubishi Oil Co., Ltd. ............................. $ 281,861
86,000 Mitsui Mining & Smelting Co., Ltd. ................... 332,192
11,000 Murata Manufacturing Co., Ltd. ....................... 392,364
26,000 Nikko Securities Co., Ltd. ........................... 277,290
60 Nippon Telephone & Telegraph Corp. ................... 440,939
65,000 Nippon Yusen.......................................... 337,874
180,000 +NKK Corp. ........................................... 461,373
26,000 Nomura Securities Co., Ltd. .......................... 477,684
45,000 Onward Kashiyama Co., Ltd. ........................... 629,145
78,000 +Pacific Metals Co., Ltd. ............................ 325,757
26,000 Pioneer Electronic Corp. ............................. 531,278
31,000 Ricoh Co., Ltd. ...................................... 316,724
31,000 Sanwa Bank Ltd. ...................................... 558,433
27,000 Sekisui Chemical Co., Ltd. ........................... 319,412
70,000 Sumitomo Corp. ....................................... 612,923
33,000 Sumitomo Electric Industries.......................... 452,501
106,000 +Sumitomo Heavy Industries, Ltd. ..................... 403,746
32,000 Sumitomo Trust & Banking Co., Ltd..................... 401,506
38,000 Tokio Marine & Fire Insurance Co. .................... 449,543
49,000 Tokyu Corp. .......................................... 344,291
43,000 Toyo Trust & Banking.................................. 393,081
-----------
15,398,110
-----------
AUSTRALIA -- 10.71%
7,084 ANZ Banking Group Ltd. ............................... 40,528
108,976 Broken Hill Proprietary Co., Ltd. .................... 1,396,974
178,000 Comalco Ltd. ......................................... 993,005
887,000 MIM Holdings Ltd. .................................... 1,080,903
108,000 National Australia Bank Ltd. ......................... 1,136,626
220,000 News Corp., Ltd. ..................................... 1,154,193
784,000 Pasminco Ltd. ........................................ 1,153,908
208,000 WMC Ltd. ............................................. 1,338,123
130,000 Woodside Petroleum Ltd. .............................. 862,045
-----------
9,156,305
-----------
MALAYSIA -- 9.66%
288,000 DCB Holdings Bhd. .................................... 988,387
90,000 Genting Bhd. ......................................... 653,657
138,000 Malayan Banking Bhd. ................................. 1,371,244
333 Malaysian International Shipping Bhd. (Foreign)....... 1,023
265,000 Petronas Gas Bhd. .................................... 1,078,654
170,000 Resorts World Bhd. ................................... 963,327
76,000 Rothmans of Pall Mall Bhd. ........................... 773,375
470,000 Sime Darby Bhd. ...................................... 1,556,726
250,000 Tenaga Nasional Bhd. ................................. 877,928
-----------
8,264,321
-----------
</TABLE>
See Notes to Financial Statements
11
<PAGE>
EXCELSIOR FUNDS, INC.
PORTFOLIO OF INVESTMENTS SEPTEMBER 30, 1996 (UNAUDITED)
PACIFIC/ASIA FUND -- (CONTINUED)
<TABLE>
<CAPTION>
VALUE
SHARES (NOTE 1)
---------- -----------
<S> <C> <C>
COMMON STOCKS -- (CONTINUED)
SINGAPORE -- 7.82%
155,000 City Developments Ltd. ............................... $ 1,321,304
190,000 DBS Land Ltd. ........................................ 628,969
71,500 Development Bank of Singapore Ltd. (Foreign).......... 878,703
47,000 Fraser & Neave Ltd. .................................. 484,123
80,000 Keppel Corp., Ltd. ................................... 619,450
92,400 Oversea-Chinese Banking Corp. Ltd. (Foreign).......... 1,109,299
100,000 Singapore Airlines Ltd. (Foreign)..................... 1,008,738
105,000 Singapore Land Ltd. .................................. 637,742
-----------
6,688,328
-----------
THAILAND -- 4.21%
60,000 Bangkok Bank Co., Ltd. (Foreign)...................... 783,635
10,684 Bangkok Insurance Co., Ltd. .......................... 168,120
8,316 Bangkok Insurance Co., Ltd. (Foreign)................. 131,512
148,115 Dusit Thani Co., Ltd. (Foreign)....................... 174,801
275,000 National Petrochemical Co. (Foreign).................. 286,684
40,000 Phatra Thanakit Co., Ltd. ............................ 228,167
285,000 Robinson Department Store Co. (Foreign)............... 639,064
34,000 Siam City Cement Public Co., Ltd. .................... 232,730
263,000 +TelecomAsia Corp. (Foreign).......................... 532,828
14 Thailand International Fund........................... 427,000
-----------
3,604,541
-----------
TAIWAN -- 4.09%
162 +Formosa Fund IDR..................................... 1,417,500
175 +Taipei Fund IDR...................................... 1,470,000
50,000 +Taiwan American Fund................................. 612,500
-----------
3,500,000
-----------
KOREA -- 2.74%
3,100 Hyundai Motor Co., Ltd. GDR........................... 36,425
62,000 Korea Fund, Inc. ..................................... 1,131,500
20,000 +L.G. Chemical Ltd. GDR............................... 249,394
90,000 +Schroder Korea Fund.................................. 922,500
-----------
2,339,819
-----------
PAKISTAN -- 2.18%
39,800 +Hub Power Co. GDR.................................... 835,800
45,000 +Pakistan Investment Fund, Inc. ...................... 236,250
9,050 +Pakistan Telecommunications Corp., GDR............... 791,875
-----------
1,863,925
-----------
</TABLE>
<TABLE>
<CAPTION>
VALUE
SHARES (NOTE 1)
---------- -----------
<S> <C> <C>
COMMON STOCKS -- (CONTINUED)
PHILIPPINES -- 1.54%
223,500 Ayala Land, Inc., Class B............................ $ 272,977
25,000 Manila Electric Co., Class B......................... 185,115
14,124 +Philippine National Bank............................ 233,154
252,000 +Pilipino Telephone Corp. ........................... 346,260
86,000 San Miguel Co., Class B.............................. 282,290
-----------
1,319,796
-----------
INDIA -- 2.07%
39,000 +Industrial Credit & Investment Corp. of India Ltd.,
GDR.................................................. 426,562
40,000 +IS Himalayan Fund N.V. ............................. 480,000
54,000 +Morgan Stanley India Investment Fund, Inc. ......... 472,500
30,000 Tata Engineering & Locomotive Co., Ltd. GDR.......... 393,600
-----------
1,772,662
-----------
NEW ZEALAND -- 1.48%
573,329 Carter Holt Harvey Ltd. ............................. 1,262,027
-----------
CHINA -- 1.20%
18,800 +Huaneng Power International ADR..................... 312,550
1,274,000 Shanghai Petrochemical Co., Class H.................. 337,743
1,550,000 Yizheng Chemical Fibre Company Ltd., Class H......... 376,836
-----------
1,027,129
-----------
INDONESIA -- 0.56%
241,875 Panin Bank (Foreign)................................. 234,375
72,000 PT Indosat........................................... 242,636
-----------
477,011
-----------
UNITED STATES -- 0.35%
10,000 Rutherford - Moran Oil Corp. ........................ 296,250
-----------
TOTAL COMMON STOCKS
(Cost $82,957,302)................................... 82,591,342
-----------
<CAPTION>
NO. OF
RIGHTS
----------
<S> <C> <C>
RIGHTS -- 0.02%
JAPAN -- 0.02%
1,760 x/+Industrial Bank of Japan, expiring 10/18/96 (Cost
$0).................................................. 17,982
-----------
</TABLE>
See Notes to Financial Statements
12
<PAGE>
EXCELSIOR FUNDS, INC.
PORTFOLIO OF INVESTMENTS SEPTEMBER 30, 1996 (UNAUDITED)
PACIFIC/ASIA FUND -- (CONTINUED)
<TABLE>
<CAPTION>
PRINCIPAL VALUE
AMOUNT (NOTE 1)
---------- -----------
<S> <C> <C>
DEMAND NOTES -- 2.74%
UNITED STATES -- 2.74%
$ 564,000 Associates Corp. of North America Master Notes........ $ 564,000
1,781,000 General Electric Co. Promissory Notes................. 1,781,000
-----------
TOTAL DEMAND NOTES
(Cost $2,345,000)..................................... 2,345,000
-----------
</TABLE>
<TABLE>
<CAPTION>
VALUE
(NOTE 1)
-----------
<S> <C> <C>
TOTAL INVESTMENTS
(Cost $85,302,302*)....... 99.34% $84,954,324
OTHER ASSETS & LIABILITIES
(NET)..................... 0.66 561,018
------ -----------
NET ASSETS................ 100.00% $85,515,342
====== ===========
</TABLE>
- --------
*-- Aggregate cost for Federal tax and book purposes.
+-- Non-income producing.
x-- Security is valued at fair value. See Note 1 to financial statements.
ADR-- American Depositary Receipt.
GDR-- Global Depositary Receipt.
IDR-- International Depositary Share.
At September 30, 1996, sector diversification of the Fund's investment
portfolio was as follows:
<TABLE>
<CAPTION>
% OF
NET MARKET
SECTOR DIVERSIFICATION ASSETS VALUE
---------------------- ------ -----------
<S> <C> <C>
Financial................................................ 45.56% $38,962,142
Raw/Intermediate Materials............................... 12.49 10,679,303
Consumer Cyclical........................................ 9.85 8,422,204
Capital Goods............................................ 6.24 5,338,767
Transportation........................................... 5.97 5,104,355
Utilities................................................ 5.83 4,983,780
Consumer Staples......................................... 4.80 4,110,169
Energy................................................... 4.24 3,627,216
Demand Notes............................................. 2.74 2,345,000
Technology............................................... 1.62 1,381,388
------ -----------
Total Investments........................................ 99.34% $84,954,324
Other Assets and Liabilities (Net)....................... 0.66 561,018
------ -----------
Net Assets............................................... 100.00% $85,515,342
====== ===========
</TABLE>
See Notes to Financial Statements
13
<PAGE>
EXCELSIOR FUNDS, INC.
PORTFOLIO OF INVESTMENTS SEPTEMBER 30, 1996 (UNAUDITED)
PAN EUROPEAN FUND
<TABLE>
<CAPTION>
VALUE
SHARES (NOTE 1)
---------- -----------
<S> <C> <C>
COMMON STOCKS -- 93.56%
UNITED KINGDOM & POSSESSIONS -- 33.83%
130,000 Allied Domecq plc..................................... $ 913,373
100,000 BAT Industries plc.................................... 666,604
300,000 British Gas plc....................................... 936,532
58,000 British Petroleum Co. plc............................. 601,728
170,000 British Telecommunications plc........................ 948,346
215,000 BTR plc............................................... 910,047
235,000 Caradon plc........................................... 908,287
92,000 Carlton Communications plc............................ 695,334
111,000 Dalgety plc........................................... 529,762
100,000 General Accident plc.................................. 1,065,628
90,000 General Electric Co. plc.............................. 556,990
53,500 Glaxo Holdings plc.................................... 838,423
52,000 Granada Group plc..................................... 696,930
165,000 Inchcape plc.......................................... 700,990
70,000 Johnson Matthey plc................................... 665,978
85,000 Land Securities plc................................... 927,065
65,000 London Electricity plc................................ 624,002
97,000 National Westminster Bank plc......................... 1,030,623
260,000 NFC plc............................................... 740,462
100,000 Peninsular & Oriental Steam........................... 973,305
196,000 Sainsbury (J) plc..................................... 1,133,258
42,000 Shell Transport & Trading Co. plc..................... 640,785
107,000 Smith (W H) Group plc................................. 791,960
300,000 Wimpey (George) plc................................... 603,230
-----------
19,099,642
-----------
FRANCE -- 14.72%
3,500 Accor S.A. ........................................... 432,542
6,000 Compagnie de Saint Gobain............................. 813,559
10,030 Credit Local de France................................ 854,857
10,400 Elf Aquitaine......................................... 813,668
2,500 Essilor International ADP............................. 508,475
3,770 Imetal................................................ 547,700
9,551 Lafarge Coppee S.A. .................................. 563,347
10,610 Michelin CGDE, Class B (Registered)................... 541,547
1,000 Pinault-Printemps-Redoute S.A. ....................... 368,039
6,517 Primagaz S.A. ........................................ 685,468
1,950 Promodes.............................................. 528,814
6,000 Television Francaise 1................................ 665,956
12,540 Total S.A., Class B................................... 987,411
-----------
8,311,383
-----------
GERMANY -- 11.76%
35,000 Bayer AG.............................................. 1,277,814
2,408 Mannesmann AG......................................... 902,171
8,800 Metro AG.............................................. 801,468
7,000 SGL Carbon AG......................................... 816,407
22,600 Siemens AG............................................ 1,188,640
</TABLE>
<TABLE>
<CAPTION>
VALUE
SHARES (NOTE 1)
---------- -----------
<S> <C> <C>
COMMON STOCKS -- (CONTINUED)
GERMANY -- (CONTINUED)
10,800 Veba AG................... $ 565,546
2,920 Volkswagen AG............. 1,086,725
-----------
6,638,771
-----------
SWITZERLAND -- 8.26%
941 Nestle AG (Registered)...... 1,048,807
197 Roche Holding AG.......... 1,450,446
1,340 Sandoz AG (Registered)...... 1,608,897
900 Winterthur Schweizerische
Versicherungs (Registered).. 555,370
-----------
4,663,520
-----------
NETHERLANDS -- 7.30%
16,400 ABN Amro Holdings N.V. ... 909,354
1,795 Akzo Nobel N.V. .......... 217,519
36,700 Elsevier N.V. ............ 606,842
4,000 Grolsch N.V. ............. 160,093
18,000 Koninklijke KNP N.V. ..... 422,787
4,800 Philips Electronics N.V. . 173,322
26,000 Vendex International
N.V. ..................... 1,013,263
31,700 Verenigde Nederlandse
Vitgeversbedrijven
Verenigd Bezit N.V. ...... 620,479
-----------
4,123,659
-----------
SWEDEN -- 4.59%
12,300 Astra AB, Class A......... 519,912
31,770 Ericsson, Class B......... 800,941
29,000 Sparbanken Sverige AB,
Class A................... 420,277
36,500 Stora Kopparbergs
Bergslags AB, Class A..... 473,869
14,000 +Swedish Match AB......... 42,269
2,900 +Tornet Fastighets AB..... 33,710
14,000 Volvo AB, Class B......... 301,168
-----------
2,592,146
-----------
ITALY -- 3.44%
440,000 Credito Italiano S.p.A. .. 505,624
29,500 Magneti Marelli S.p.A. ... 34,694
10,200 Industrie Natuzzi S.p.A.
ADR....................... 474,300
78,000 Italgas S.p.A. ........... 292,116
286,000 Telecom Italia S.p.A. .... 636,078
-----------
1,942,812
-----------
SPAIN -- 2.59%
11,800 Argentaria S.A. .......... 489,291
2,600 Cristaleria Espanola
S.A. ..................... 161,107
5,500 Hidroelectrica del
Cantabrico S.A., Class C.. 166,757
</TABLE>
See Notes to Financial Statements
14
<PAGE>
EXCELSIOR FUNDS, INC.
PORTFOLIO OF INVESTMENTS SEPTEMBER 30, 1996 (UNAUDITED)
PAN EUROPEAN FUND--(CONTINUED)
<TABLE>
<CAPTION>
VALUE
SHARES (NOTE 1)
---------- -----------
<S> <C> <C>
COMMON STOCKS -- (CONTINUED)
SPAIN -- (CONTINUED)
10,000 Repsol S.A. .......................................... $ 328,917
16,850 Telefonica de Espana S.A. ............................ 313,229
-----------
1,459,301
-----------
FINLAND -- 2.27%
5,450 Cultor Oy 1........................................... 280,442
6,400 Metra Oy, Class B..................................... 367,164
9,000 Nokia AB.............................................. 402,023
11,100 +UPM-Kymmene OY....................................... 231,387
-----------
1,281,016
-----------
AUSTRIA -- 1.23%
6,925 OMV AG................................................ 696,337
-----------
PORTUGAL -- 0.88%
5,460 Jeronimo Martins & Filho.............................. 496,427
-----------
DENMARK -- 0.84%
10,000 Tele Danmark AS, Class B.............................. 474,403
-----------
NORWAY -- 0.71%
8,500 Norsk Hydro AS........................................ 397,990
-----------
BELGIUM -- 0.64%
1,045 Generale de Banque S.A................................ 360,976
-----------
GREECE -- 0.50%
8,375 Hellenic Bottling Co. S.A. ........................... 284,840
-----------
TOTAL COMMON STOCKS
(Cost $44,874,398).................................... 52,823,223
-----------
PREFERRED STOCK -- 1.22%
FRANCE -- 1.22%
6,600 Legrand S.A. (Cost $619,152).......................... 690,363
-----------
<CAPTION>
NO. OF
RIGHTS
----------
<S> <C> <C>
RIGHTS -- 0.01%
BELGIUM -- 0.01%
105 x/+Generale De Banque, expiring 10/04/96 (Cost $0)... 2,162
-----------
</TABLE>
<TABLE>
<CAPTION>
NO. OF VALUE
WARRANTS (NOTE 1)
---------- -----------
<S> <C> <C>
WARRANTS -- 0.03%
UNITED KINGDOM & POSSESSIONS -- 0.03%
29,000 +Angerstein Underwriting Trust plc, expiring 8/31/00. $ 14,521
948 +BTR plc, expiring 11/26/98.......................... 108
4,000 +Syndicate Capital Trust plc, expiring 10/31/99...... 1,815
-----------
TOTAL WARRANTS
(Cost $13,246)....................................... 16,444
-----------
<CAPTION>
PRINCIPAL
AMOUNT
----------
<S> <C> <C>
DEMAND NOTES -- 4.65%
UNITED STATES -- 4.65%
$1,085,000 Associates Corp. of North America Master Notes....... 1,085,000
1,540,000 General Electric Co. Promissory Notes................ 1,540,000
-----------
TOTAL DEMAND NOTES
(Cost $2,625,000).................................... 2,625,000
-----------
</TABLE>
<TABLE>
<S> <C> <C>
TOTAL INVESTMENTS
(Cost $48,131,796*)........................................ 99.47% $56,157,192
OTHER ASSETS & LIABILITIES (NET)........................... 0.53 300,943
------ -----------
NET ASSETS................................................. 100.00% $56,458,135
====== ===========
</TABLE>
- --------
*-- Aggregate cost for Federal tax and book purposes.
+-- Non-income producing.
x-- Security is valued at fair value. See Note 1 to financial statements.
ADR-- American Depositary Receipt.
See Notes to Financial Statements
15
<PAGE>
EXCELSIOR FUNDS, INC.
PORTFOLIO OF INVESTMENTS MARCH 31, 1996
PAN EUROPEAN FUND -- (CONTINUED)
At September 30, 1996, sector diversification of the Fund's investment
portfolio was as follows:
<TABLE>
<CAPTION>
% OF
NET MARKET
SECTOR DIVERSIFICATION ASSETS VALUE
---------------------- ------ -----------
<S> <C> <C>
Consumer Cyclical........................................ 25.09% $14,166,954
Consumer Staples......................................... 12.73 7,189,130
Financial................................................ 12.70 7,171,273
Raw/Intermediate Materials............................... 11.11 6,273,754
Energy................................................... 8.85 4,994,508
Utilities................................................ 8.36 4,716,813
Capital Goods............................................ 6.49 3,660,873
Technology............................................... 6.16 3,477,295
Demand Notes............................................. 4.65 2,625,000
Transportation........................................... 1.72 973,305
Holding Company Diversified.............................. 1.61 908,287
------ -----------
Total Investments........................................ 99.47% $56,157,192
Other Assets and Liabilities (Net)....................... 0.53 300,943
------ -----------
Net Assets............................................... 100.00% $56,458,135
====== ===========
</TABLE>
See Notes to Financial Statements
16
<PAGE>
EXCELSIOR FUNDS, INC.
PORTFOLIO OF INVESTMENTS SEPTEMBER 30, 1996 (UNAUDITED)
EMERGING AMERICAS FUND
<TABLE>
<CAPTION>
VALUE
SHARES (NOTE 1)
----------- -----------
<S> <C> <C>
COMMON STOCKS -- 77.55%
MEXICO -- 25.74%
99,000 Apasco S.A. ........................................ $ 680,814
172,000 +Carso Global Telecom- A-1.......................... 451,252
290,400 Cemex S.A., CPO..................................... 1,085,104
53,274 Cemex S.A., Class A................................. 202,239
661,307 +Cifra S.A., Class B................................ 953,362
598,000 +Controladora Comercial Mexicana S.A. de CV, Class
B................................................... 554,657
141,046 +Corporacion GEO S.A., Class B...................... 659,722
153,000 +Desaroios Sociedad Fomento Industries S.A., Series
B................................................... 857,546
61,100 +Empresas ICA Sociedad Controladora S.A. ADR........ 931,775
177,450 +Gruma S.A., Class B................................ 1,108,622
184,000 Grupo Carso S.A., Class A-1......................... 846,005
255,000 +Grupo Financiero Banamex Accival S.A., Class B..... 550,749
28,200 +Grupo Financiero Bancomer S.A. ADR................. 263,670
134,000 Grupo Modelo S.A., Series C......................... 692,461
107,000 +Invercorporation S.A., Class A-1................... 14,178
44,540 Kimberly-Clark de Mexico S.A., Class A.............. 844,531
52,000 Telefonos de Mexico S.A., Class A................... 83,371
1,276,000 Telefonos de Mexico S.A., Class L................... 2,042,412
76,000 +Tubos de Acero de Mexico S.A. ..................... 830,794
-----------
13,653,264
-----------
BRAZIL -- 19.58%
80,146,843 Banco Bradesco...................................... 597,431
25,567 Cia Energetica de Minas Gerais ADR.................. 760,618
16,960 Cia Vale do Rio Doce................................ 423,626
295,000 +Cosipa............................................. 179,156
8,470,800 Eletrobras.......................................... 2,231,996
1,175,064 x/+Light Participacoes S.A.......................... 109,346
82,000 Souza Cruz S.A...................................... 546,185
28,600,000 Telebras............................................ 1,860,163
35,700 Telebras ADR........................................ 2,802,450
5,165,731 +Telecomunicacoes de Sao Paulo S.A. ................ 875,376
-----------
10,386,347
-----------
CANADA -- 10.73%
17,000 Avenor, Inc. ....................................... 271,575
41,000 Bombardier, Inc., Class B........................... 584,209
18,000 Canadian Pacific Ltd. .............................. 417,774
5,000 Franco Nevada Mining Ltd. .......................... 187,477
20,000 +Goldcorp, Inc., Class A............................ 176,276
</TABLE>
<TABLE>
<CAPTION>
VALUE
SHARES (NOTE 1)
----------- -----------
<S> <C> <C>
COMMON STOCKS -- (CONTINUED)
CANADA -- (CONTINUED)
71,000 +Gulf Canada Resources, Ltd. ........................ $ 443,261
8,200 Imasco, Ltd. ........................................ 180,081
6,300 Northern Telecom Ltd. ............................... 363,239
6,800 Potash Corp. of Saskatchewan, Inc. .................. 496,452
19,000 Quebecor Printing, Inc. ............................. 313,294
17,200 Rio Algom Ltd. ...................................... 330,356
12,300 +Talisman Energy, Inc. .............................. 336,974
23,000 Telus Corp. ......................................... 315,057
26,000 Thomson Corp. ....................................... 467,866
17,700 Toronto Dominion Bank................................ 359,460
28,000 TransCanada Pipelines Ltd. .......................... 449,357
-----------
5,692,708
-----------
CHILE -- 7.44%
5,565 Chilectra S.A. ADR................................... 301,721
6,624 Compania de Telefonos de Chile ADR................... 640,044
3,276 Embotelladora Andina S.A. ADR........................ 113,841
17,388 Enersis S.A. ADR..................................... 560,763
173,830 Five Arrows Chile Investment Fund.................... 516,379
25,466 Genesis Chile Fund Ltd. (Participating Certificates)... 1,040,923
15,000 Santa Isabel S.A. ADR................................ 384,375
6,976 Sociedad Quimica y Minera de Chile ADR............... 389,784
-----------
3,947,830
-----------
ARGENTINA -- 5.47%
310,350 Astra S.A., Class B.................................. 499,753
74,243 Banco de Galicia y Buenos Aires S.A., Class B........ 408,410
113,169 Cia Naviera Perez Compania S.A., Class B............. 716,489
18,200 Telefonica de Argentina S.A. ADR..................... 452,725
35,950 YPF S.A. ADR......................................... 822,356
-----------
2,899,733
-----------
PERU -- 3.33%
770 Cia de Minas Buenaventura, Class A................... 6,939
193 +Cia de Minas Buenaventura, Class B.................. 1,847
68,145 Cia de Minas Buenaventura, Class T................... 615,424
26,793 Credicorp Ltd........................................ 509,067
279,563 Telefonica del Peru S.A., Class B.................... 632,026
-----------
1,765,303
-----------
</TABLE>
See Notes to Financial Statements
17
<PAGE>
EXCELSIOR FUNDS, INC.
PORTFOLIO OF INVESTMENTS SEPTEMBER 30, 1996 (UNAUDITED)
EMERGING AMERICAS FUND -- (CONTINUED)
<TABLE>
<CAPTION>
VALUE
SHARES (NOTE 1)
----------- -----------
<S> <C> <C>
COMMON STOCKS -- (CONTINUED)
COLOMBIA -- 2.73%
53,770 Banco Industrial Colombiano ADR...................... $ 1,001,466
32,750 ++Cementos Diamante ADR.............................. 389,070
4,520 Cementos Diamante GDR................................ 53,698
-----------
1,444,234
-----------
VENEZUELA -- 2.53%
370,000 Siderurgica Venezolana Sevensa ADR................... 1,342,952
-----------
TOTAL COMMON STOCKS (Cost $37,687,150)............... 41,132,371
-----------
PREFERRED STOCKS -- 16.74%
BRAZIL -- 16.74%
129,139,815 Banco Bradesco....................................... 1,100,516
1,750,000 Brasmotor............................................ 646,244
16,000,000 +Cia Energetica de Sao Paulo......................... 463,904
45,600 Cia Vale do Rio Doce................................. 904,496
1,390,000 Itausa............................................... 1,089,235
23,031,300 Lojas Americanas..................................... 390,285
12,009,999 Petroleo Brasileiro S.A.............................. 1,411,578
1,611,870 Sacervesacia Brahma.................................. 1,002,599
6,654,025 Telecomunicacoes de Sao Paulo S.A.................... 1,277,489
601,000,000 Usinas Sider Minas Gerais............................ 594,583
-----------
TOTAL PREFERRED STOCKS (Cost $8,202,826)............. 8,880,929
-----------
<CAPTION>
NO.OF
RIGHTS
-----------
<S> <C> <C>
RIGHTS -- 0.00%
ARGENTINA -- 0.00%
33,636 +Siderurgica Venez Sivens ADR
(Cost $0)............................................ 0
-----------
</TABLE>
<TABLE>
<CAPTION>
PRINCIPAL VALUE
AMOUNT (NOTE 1)
---------- -----------
<S> <C> <C>
DEMAND NOTES -- 5.48%
$1,116,000 Associates Corp. of North America Master Notes........ $ 1,116,000
1,791,000 General Electric Co. Promissory Notes................. 1,791,000
-----------
TOTAL DEMAND NOTES (Cost $2,907,000).................. 2,907,000
-----------
</TABLE>
<TABLE>
<S> <C> <C>
TOTAL INVESTMENTS (Cost $48,796,976*)...................... 99.77% $52,920,300
OTHER ASSETS & LIABILITIES (NET)........................... 0.23 123,540
------ -----------
NET ASSETS................................................. 100.00% $53,043,840
====== ===========
</TABLE>
- --------
*-- Aggregate cost for Federal tax and book purposes.
+-- Non-income producing.
++-- Security exempt from registration under Rule 144A of the Securities Act
of 1933. These securities may be resold in transactions exempt from
registration, normally to qualified institutional buyers. At September
30, 1996 these securities amounted to $389,070, or 0.73% of net assets.
x-- Security is valued at fair value. See Note 1 to financial statements.
ADR-- American Depositary Receipt.
GDR-- Global Depositary Receipt.
See Notes to Financial Statements
18
<PAGE>
EXCELSIOR FUNDS, INC.
PORTFOLIO OF INVESTMENTS SEPTEMBER 30, 1996 (UNAUDITED)
EMERGING AMERICAS FUND -- (CONTINUED)
At September 30, 1996, sector diversification of the Fund's investment
portfolio was as follows:
<TABLE>
<CAPTION>
% OF
NET MARKET
SECTOR DIVERSIFICATION ASSETS VALUE
---------------------- ------ -----------
<S> <C> <C>
Utilities................................................ 21.14% $11,213,458
Consumer Cyclical........................................ 13.21 7,004,412
Financial................................................ 11.97 6,348,071
Raw/Intermediate Materials............................... 11.96 6,344,691
Capital Goods............................................ 9.80 5,200,277
Technology............................................... 7.19 3,814,175
Holding Company Diversified.............................. 6.14 3,258,216
Demand Notes............................................. 5.48 2,907,000
Energy................................................... 5.22 2,768,437
Consumer Staples......................................... 6.87 3,643,788
Transportation........................................... 0.79 417,775
------ -----------
Total Investments........................................ 99.77% $52,920,300
Other Assets and Liabilities (Net)....................... 0.23 123,540
------ -----------
Net Assets............................................... 100.00% $53,043,840
====== ===========
</TABLE>
See Notes to Financial Statements
19
<PAGE>
EXCELSIOR FUNDS, INC.
NOTES TO FINANCIAL STATEMENTS (UNAUDITED)
1. SIGNIFICANT ACCOUNTING POLICIES
Excelsior Funds, Inc. ("Excelsior Fund") was incorporated under the laws of
the State of Maryland on August 2, 1984 and is registered under the Investment
Company Act of 1940, as amended, as an open-end management investment company.
Excelsior Fund currently offers shares in twenty managed investment
portfolios, each having its own investment objectives and policies. The
following is a summary of significant accounting policies for International
Fund, Pacific/Asia Fund, Pan European Fund and Emerging Americas Fund (the
"Portfolios"). Such policies are in conformity with generally accepted
accounting principles and are consistently followed by Excelsior Fund in the
preparation of the financial statements. Generally accepted accounting
principles require management to make estimates and assumptions that affect
the reported amounts and disclosures in the financial statements. Actual
results could differ from these estimates. The financial statements for the
remaining portfolios of Excelsior Fund and Excelsior Tax-Exempt Funds, Inc.
are presented separately.
(A) PORTFOLIO VALUATION:
Portfolio securities that are primarily traded on foreign securities
exchanges are generally valued at the preceding closing values of such
securities on their respective exchanges, except that when an occurrence
subsequent to the time a value was so established is likely to have changed
such value, then a fair value of those securities will be determined by
consideration of other factors under the direction of the Board of
Directors. A security which is traded on more than one exchange is valued
at the quotation on the exchange determined to be the primary market on
which the security is traded. Securities for which market quotations are
not readily available are valued at fair value, pursuant to guidelines
adopted by Excelsior Fund's Board of Directors. Investments in securities
which are primarily traded on a domestic exchange are valued at the last
sale price on that exchange or, if there was no recent sale, at the last
current bid quotation.
Investments in foreign debt securities having maturities of 60 days or
less are valued at amortized cost, which approximates market value. All
other foreign securities are valued at the last current bid quotation if
market quotations are available, or at fair value as determined in
accordance with policies established by the Board of Directors. Investment
valuations, other assets, and liabilities initially expressed in foreign
currencies are converted each business day into U.S. dollars based upon
current exchange rates. Purchases and sales of foreign investments and
income and expenses are converted into U.S. dollars based upon currency
exchange rates prevailing on the respective dates of such transactions.
Gains and losses attributable to foreign currency exchange rates are
recorded for financial statement purposes as net realized gains and losses
on investments. That portion of both realized and unrealized gains and
losses on investments that results from fluctuations in foreign currency
exchange rates is not separately disclosed.
Forward foreign currency exchange contracts: The Portfolios'
participation in forward currency exchange contracts will be limited to
hedging involving either specific transactions or portfolio positions.
Transaction hedging involves the purchase or sale of foreign currency with
respect to specific receivables or payables of a Portfolio generally
arising in connection with the purchase or sale of its portfolio
securities. Risk may arise upon entering into these contracts from the
potential
20
<PAGE>
inability of counterparties to meet the terms of their contracts and is
generally limited to the amount of unrealized gain on the contracts, if
any, at the date of default. Risk may also arise from unanticipated
movements in the value of a foreign currency relative to the U.S. dollar.
Contracts are marked-to-market daily and the change in market value is
recorded as unrealized appreciation or depreciation. Realized gains or
losses arising from such transactions are included in net realized gains or
losses from foreign currency transactions.
(B) SECURITY TRANSACTIONS AND INVESTMENT INCOME:
Security transactions are recorded on a trade date basis. Realized gains
and losses on investments sold are recorded on the basis of identified
cost. Interest income, including, where applicable, amortization of
discount on investments, is recorded on the accrual basis. Dividend income
is recorded on the ex-dividend date, except for certain dividends from
foreign securities, which are recorded as soon as the Portfolios are
informed of the dividend.
(C) REPURCHASE AGREEMENTS:
Excelsior Fund may purchase portfolio securities from financial
institutions deemed to be creditworthy by the investment adviser subject to
the seller's agreement to repurchase and Excelsior Fund's agreement to
resell such securities at mutually agreed upon prices. Securities purchased
subject to such repurchase agreements are deposited with Excelsior Fund's
custodian or sub-custodian or are maintained in the Federal
Reserve/Treasury book-entry system and must have, at all times, an
aggregate market value greater than 102% of the repurchase price (including
accrued interest).
If the value of the underlying security, including accrued interest,
falls below the value of 102% of the repurchase price plus accrued
interest, Excelsior Fund will require the seller to deposit additional
collateral by the next business day. Default or bankruptcy of the seller
may, however, expose the applicable Portfolio of Excelsior Fund to possible
delay in connection with the disposition of the underlying securities or
loss to the extent that proceeds from a sale of the underlying securities
were less than the repurchase price under the agreement.
(D) DIVIDENDS AND DISTRIBUTIONS TO SHAREHOLDERS:
Dividends from net investment income are declared and paid semi-annually.
Net realized capital gains, unless offset by any available capital loss
carryforward, are distributed to shareholders at least annually. Dividends
and distributions are recorded on the ex-dividend date.
Dividends and distributions are determined in accordance with Federal
income tax regulations which may differ from generally accepted accounting
principles. These differences are primarily due to differing treatments for
foreign currency transactions, passive foreign investment companies and
deferral of losses on wash sales and post-October losses.
In order to avoid a Federal excise tax, each Portfolio is required to
distribute certain minimum amounts of net realized capital gain and net
investment income for the respective periods ending October 31 and December
31 in each calendar year.
(E) FEDERAL TAXES:
It is the policy of Excelsior Fund that each Portfolio continue to
qualify as a regulated investment company, if such qualification is in the
best interest of the shareholders, by complying
21
<PAGE>
with the requirements of the Internal Revenue Code applicable to regulated
investment companies, and by distributing substantially all of its taxable
earnings to its shareholders.
At March 31, 1996, the Emerging Americas Fund had a capital loss
carryforward for Federal tax purposes available to offset net capital gains
of approximately $5,516,000 which will expire on March 31, 2004.
Net capital losses and net currency losses incurred after October 31 and
within the taxable year are deemed to arise on the first business day of a
Portfolio's next taxable year. International Fund, Pacific/Asia Fund, Pan
European Fund and Emerging Americas Fund incurred, and expect to defer, net
capital and currency losses of approximately $0 and $43,000; $0 and $8,000;
$0 and $38,000; and $886,000 and $38,000, respectively, for the year ended
March 31, 1996.
At September 30, 1996, aggregate gross unrealized appreciation for all
securities for which there was an excess of value over tax cost and
aggregate gross unrealized depreciation for all securities for which there
was an excess of tax cost over value were as follows:
<TABLE>
<CAPTION>
NET
TAX BASIS TAX BASIS UNREALIZED
UNREALIZED UNREALIZED APPRECIATION
APPRECIATION (DEPRECIATION) (DEPRECIATION)
------------ -------------- --------------
<S> <C> <C> <C>
International Fund................ $9,262,424 $(5,103,610) $4,158,814
Pacific/Asia Fund................. 5,844,313 (6,192,291) (347,978)
Pan European Fund................. 9,829,980 (1,804,584) 8,025,396
Emerging Americas Fund............ 8,194,513 (4,071,189) 4,123,324
</TABLE>
(F) EXPENSE ALLOCATION:
Expenses directly attributable to a Portfolio are charged to that
Portfolio. Other expenses are allocated to the respective Portfolios based
on average net assets.
2. INVESTMENT ADVISORY FEE, ADMINISTRATION FEE AND RELATED PARTY TRANSACTIONS
United States Trust Company of New York ("U.S. Trust") serves as the
investment adviser to Excelsior Fund. Foreign and Colonial Asset Management
("FACAM") serves as the sub-adviser to International Fund and Pan European
Fund. Foreign and Colonial Emerging Markets Limited ("FCEML") serves as the
sub-adviser to Pacific/Asia Fund and Emerging Americas Fund. For the services
provided pursuant to the Investment Advisory Agreements, U.S. Trust is
entitled to receive a fee, computed daily and paid quarterly, at the annual
rate of 1% of the average daily net assets of each Portfolio. FACAM is
entitled to receive from U.S. Trust an annual fee, computed and paid
quarterly, at the annual rate of .70% of the average daily net assets of each
of the International Fund and Pan European Fund. FCEML is entitled to receive
from U.S. Trust an annual fee, computed and paid quarterly, at an annual rate
of .70% of the average daily net assets of the Pacific/Asia Fund and .50% of
the average daily net assets of the Emerging Americas Fund.
Effective November 1, 1996, the sub-advisory arrangements between U.S. Trust
and: (i) FACAM with respect to the International and Pan European Funds; and
(ii) FCEML with respect to the Emerging Americas and Pacific/Asia Fund have
been terminated. U.S. Trust will continue to serve as investment adviser to,
and will manage, the Funds pursuant to the investment advisory agreements
currently in effect for such Funds.
22
<PAGE>
U.S. Trust, Chase Global Funds Services Company ("CGFSC"), a subsidiary of
The Chase Manhattan Bank and Federated Administrative Services (collectively,
the "Administrators") provide administrative services to Excelsior Fund. For
the services provided to the Portfolios, the Administrators are entitled
jointly to annual fees, computed daily and paid monthly, at the rate of .20%
of the average daily net assets of each Portfolio. For the six months ended
September 30, 1996, Administration fees charged by U.S. Trust were as follows:
<TABLE>
<S> <C>
International Fund................................................... $23,273
Pacific/Asia Fund.................................................... 17,883
Pan European Fund.................................................... 11,283
Emerging Americas Fund............................................... 10,779
</TABLE>
From time to time, as they may deem appropriate in their sole discretion, or
pursuant to applicable state expense limitations, U.S. Trust, the sub-advisers
and the Administrators may undertake to waive a portion or all of the fees
payable to them and also may reimburse the Portfolios for a portion of other
expenses. Until further notice to Excelsior Fund, U.S. Trust intends to
voluntarily waive fees and reimburse expenses to the extent necessary for
Pacific/Asia Fund, Pan European Fund and Emerging Americas Fund to maintain an
annual expense ratio of not more than 1.67%. For the six months ended
September 30, 1996, no fees were waived or expenses reimbursed pursuant to
this voluntary limitation.
Excelsior Fund has also entered into administrative servicing agreements
with various service organizations (which may include affiliates of U.S.
Trust) requiring them to provide administrative support services to their
customers owning shares of the Portfolios. As a consideration for the
administrative services provided by each service organization to its
customers, each Portfolio will pay the service organization an administrative
service fee at the annual rate of up to .40% of the average daily net asset
value of its shares held by the service organizations' customers. Such
services may include assisting in processing purchase, exchange and redemption
requests; transmitting and receiving funds in connection with customer orders
to purchase, exchange or redeem shares; and providing periodic statements.
Until further notice to Excelsior Fund, U.S. Trust and the Administrators have
voluntarily agreed to waive investment advisory and administration fees
payable by each Portfolio in an amount equal to the administrative service
fees payable by such Portfolio. For the six months ended September 30, 1996,
U.S. Trust and the Administrators waived investment advisory and
administration fees in amounts equal to the administrative service fees for
the Portfolios as set forth below:
<TABLE>
<CAPTION>
U.S. TRUST ADMINISTRATORS
---------- --------------
<S> <C> <C>
International Fund................................. $46,137 $29
Pacific/Asia Fund.................................. 30,375 55
Pan European Fund.................................. 19,312 1
Emerging Americas Fund............................. 19,528 31
</TABLE>
Edgewood Services, Inc. (the "Distributor"), a wholly-owned subsidiary
of Federated Investors, serves as the sponsor and distributor of Excelsior
Fund. Certain sales of Excelsior Fund's shares are subject to a maximum sales
charge of 4.50% of the offering price. Shares of each Portfolio are sold on a
continuous basis by the Distributor.
Each Director of Excelsior Fund receives an annual fee of $9,000, plus a
meeting fee of $1,500 for each meeting attended, and is reimbursed for
expenses incurred for attending meetings. The Chairman receives an additional
annual fee of $5,000.
23
<PAGE>
3. PURCHASES AND SALES OF SECURITIES:
For the six months ended September 30, 1996, purchases and sales of
securities, excluding short-term investments, for the Portfolios aggregated:
<TABLE>
<CAPTION>
CONTRIBUTION
PURCHASES IN KIND SALES
----------- ------------ -----------
<S> <C> <C> <C>
International Fund...................... $14,282,471 $21,239,784 $25,961,163
Pacific/Asia Fund ...................... 34,203,436 -- 20,963,996
Pan European Fund....................... 10,517,726 -- 5,203,589
Emerging Americas Fund.................. 11,598,337 -- 7,793,023
</TABLE>
4. COMMON STOCK:
Excelsior Fund currently has authorized capital classified into forty classes
of shares, each representing interests in one of twenty separate portfolios.
Authorized capital for each Portfolio is as follows: with respect to the
International Fund, 375 million shares of Common Stock and 500 million shares
of Common Stock--Special Series 1; and with respect to each of the Emerging
Americas, Pacific/Asia and Pan European Funds, 500 million shares of Common
Stock and 500 million shares of Common Stock--Special Series 1. At September
30, 1996, no shares of Common Stock--Special Series 1 (Trust Shares) of any
Portfolio were outstanding.
Each share (irrespective of series designation) has a par value of $.001 and
represents an equal proportionate interest in the particular Portfolio with
other shares of the same Portfolio, and is entitled to such dividends and
distributions of taxable earnings on the assets belonging to such Portfolio as
are declared at the discretion of Excelsior Fund's Board of Directors.
<TABLE>
<CAPTION>
INTERNATIONAL FUND
--------------------------------------------------
SIX MONTHS ENDED YEAR ENDED
09/30/96 03/31/96
------------------------ ------------------------
SHARES AMOUNT SHARES AMOUNT
---------- ------------ ---------- ------------
<S> <C> <C> <C> <C>
Sold....................... 581,859 $ 6,315,641 4,594,884 $ 48,428,812
Contribution in-kind....... 1,925,638 $ 21,239,784 -- --
Issued as reinvestment of
dividends................. 11,782 127,546 11,746 124,300
Redeemed................... (1,687,863) (18,326,920) (2,163,381) (22,716,436)
---------- ------------ ---------- ------------
Net Increase............... 831,416 $ 9,356,051 2,443,249 $ 25,836,676
========== ============ ========== ============
<CAPTION>
PACIFIC/ASIA FUND
--------------------------------------------------
SIX MONTHS ENDED YEAR ENDED
09/30/96 03/31/96
------------------------ ------------------------
SHARES AMOUNT SHARES AMOUNT
---------- ------------ ---------- ------------
<S> <C> <C> <C> <C>
Sold....................... 2,255,548 $ 21,905,565 3,596,013 $ 33,056,971
Issued as reinvestment of
dividends................. 8,006 78,131 7,394 67,403
Redeemed................... (1,025,434) (9,864,029) (1,446,336) (13,034,766)
---------- ------------ ---------- ------------
Net Increase............... 1,238,120 $ 12,119,667 2,157,071 $ 20,089,608
========== ============ ========== ============
</TABLE>
24
<PAGE>
<TABLE>
<CAPTION>
PAN EUROPEAN FUND
------------------------------------------------
SIX MONTHS ENDED YEAR ENDED
09/30/96 03/31/96
---------------------- ------------------------
SHARES AMOUNT SHARES AMOUNT
--------- ----------- ---------- ------------
<S> <C> <C> <C> <C>
Sold......................... 986,163 $ 9,197,178 1,870,905 $ 16,533,893
Issued as reinvestment of
dividends................... 3,580 32,652 12,177 104,293
Redeemed..................... (314,118) (2,924,519) (1,550,885) (13,664,173)
--------- ----------- ---------- ------------
Net Increase................. 675,625 $ 6,305,311 332,197 $ 2,974,013
========= =========== ========== ============
<CAPTION>
EMERGING AMERICAS FUND
------------------------------------------------
SIX MONTHS ENDED YEAR ENDED
09/30/96 03/31/96
---------------------- ------------------------
SHARES AMOUNT SHARES AMOUNT
--------- ----------- ---------- ------------
<S> <C> <C> <C> <C>
Sold......................... 1,625,898 $12,840,114 3,643,045 $ 25,964,699
Issued as reinvestment of
dividends................... 270 2,196 4,539 31,637
Redeemed..................... (995,669) (7,630,425) (2,457,353) (17,051,306)
--------- ----------- ---------- ------------
Net Increase................. 630,499 $ 5,211,885 1,190,231 $ 8,945,030
========= =========== ========== ============
</TABLE>
5. ORGANIZATION COSTS:
Excelsior Fund has borne all costs in connection with the initial
organization of new portfolios, including the fees for registering and
qualifying its shares for distribution under Federal and state securities
regulations. All such costs are being amortized on the straight-line basis over
periods of five years from the dates on which each Portfolio commenced
operations.
25
<PAGE>
[LOGO OF EXCELSIOR FUNDS INC. APPEARS HERE]
DOMESTIC EQUITY
PORTFOLIOS
SEMI-ANNUAL REPORT
SEPTEMBER 30, 1996
<PAGE>
TABLE OF CONTENTS
<TABLE>
<CAPTION>
PAGE
----
<S> <C>
LETTER TO SHAREHOLDERS.................................................... 1
STATEMENTS OF ASSETS AND LIABILITIES...................................... 2
STATEMENTS OF OPERATIONS.................................................. 4
STATEMENTS OF CHANGES IN NET ASSETS....................................... 6
FINANCIAL HIGHLIGHTS -- SELECTED PER SHARE DATA AND RATIOS................ 8
PORTFOLIOS OF INVESTMENTS
Equity Fund.............................................................. 12
Income and Growth Fund................................................... 13
Aging of America Fund.................................................... 15
Business and Industrial Restructuring Fund............................... 16
Communication and Entertainment Fund..................................... 18
Early Life Cycle Fund.................................................... 19
Environmentally-Related Products and Services Fund....................... 20
Global Competitors Fund.................................................. 21
Long-Term Supply of Energy Fund.......................................... 22
Productivity Enhancers Fund.............................................. 23
NOTES TO FINANCIAL STATEMENTS............................................. 24
</TABLE>
For shareholder account information, current price and yield quotations, or to
make an initial purchase or obtain a prospectus, call the appropriate telephone
number listed below:
. INITIAL PURCHASE AND PROSPECTUS INFORMATION AND SHAREHOLDER SERVICES 1-800-
446-1012
. CURRENT PRICE AND YIELD INFORMATION 1-800-233-9180
This report must be preceded or accompanied by a current prospectus.
Prospectuses containing more complete information including charges and ex-
penses regarding Excelsior Funds, Inc. and Excelsior Tax-Exempt Funds, Inc. may
be obtained by contacting the Funds at 1-800-446-1012.
Investors should read the current prospectus carefully prior to investing or
sending money.
Excelsior Funds, Inc. and Excelsior Tax-Exempt Funds, Inc. are sponsored and
distributed by Edgewood Services, Inc.
You may write to Excelsior Funds, Inc. and Excelsior Tax-Exempt Funds, Inc. at
the following address:
EXCELSIOR FUNDS, INC.
C/O CHASE GLOBAL FUNDS SERVICES COMPANY
P.O. BOX 2798
BOSTON, MA 02208-2798
SHARES IN THE FUNDS ARE NOT DEPOSITS OR OBLIGATIONS OF, OR GUARANTEED OR
ENDORSED BY, UNITED STATES TRUST COMPANY OF NEW YORK, ITS PARENT OR AFFILIATES
AND SHARES ARE NOT INSURED BY THE FEDERAL DEPOSIT INSURANCE CORPORATION, THE
FEDERAL RESERVE BOARD, OR ANY OTHER AGENCY. INVESTMENTS IN THE FUNDS INVOLVE
INVESTMENT RISKS, INCLUDING POSSIBLE LOSS OF PRINCIPAL. FUND SHARES ARE NOT
INSURED OR GUARANTEED BY THE U.S. GOVERNMENT.
<PAGE>
LETTER TO SHAREHOLDERS
- -------------------------------------------------------------------------------
Dear Shareholder:
As we close out our tenth anniversary year for the funds, we continue to
seek new opportunities to expand and improve our product offerings in response
to your investment needs. To this end, there have been some recent
developments which should be of interest to you and which I believe will
further enhance our fund family.
Our new alliance with the Excelsior Institutional Funds has enabled us to
offer two new funds. The Excelsior Institutional Optimum Growth Fund and
Institutional Value Equity Fund are both available to individual investors via
a second class of shares, Trust Shares. The Optimum Growth Fund combines a
mid- to large- capitalization growth strategy with a quantitative analysis in
the selection of complimentary securities from the Russell 1000 universe. The
Value Equity Fund applies a strict value-oriented philosophy to stock
selection and is managed by David Williams of U. S. Trust Company of New York,
who also manages the Excelsior Business & Industrial Restructuring Fund. In
addition to these funds, we now offer the California Tax-Exempt Income Fund.
This is an intermediate-term bond fund which intends to generate current
income which is exempt from state and federal taxes for California residents.
The extended Excelsior Funds Family now consists of fifteen domestic equity,
five international, eleven fixed-income, and five money market funds totaling
approximately $5.0 billion in assets. These funds have been designed to
provide a comprehensive range of investment options and offer investors, both
individual and institutional, an opportunity to allocate holdings in
accordance with their specific investment objectives.
Excelsior Fund shareholders are serviced by a dedicated team of
professionals. We recognize the importance of excellent shareholder service
and are committed to meeting your needs as investors in a proactive manner. We
appreciate the confidence which your investment represents in the funds and
strive to build on this confidence and expand our relationship with you as we
enter our second decade of operation.
Alfred C. Tannachion
Chairman of the Board and President
1
<PAGE>
EXCELSIOR FUNDS, INC.
STATEMENTS OF ASSETS AND LIABILITIES
AS OF SEPTEMBER 30, 1996 (UNAUDITED)
<TABLE>
<CAPTION>
INCOME AND AGING OF
EQUITY GROWTH AMERICA
FUND FUND FUND
------------ ------------ -----------
<S> <C> <C> <C>
ASSETS:
Investments, at cost -- see
accompanying portfolios.............. $219,770,623 $ 95,964,103 $38,564,176
============ ============ ===========
Investments, at value (Note 1)....... $284,906,150 $128,667,548 $47,542,019
Cash................................. 35,557 120 510
Dividends receivable................. 338,699 105,473 38,644
Interest receivable.................. 73,342 740,359 6,326
Receivable for investments sold...... -- -- 896,160
Receivable for fund shares sold...... 788,036 309,099 73,577
Withholding tax receivable........... -- 3,117 --
Prepaid expenses..................... 1,163 777 250
Unamortized organization costs (Note
5)................................... -- -- 5,253
------------ ------------ -----------
TOTAL ASSETS......................... 286,142,947 129,826,493 48,562,739
LIABILITIES:
Payable for investments purchased.... -- 220,000
Payable for fund shares redeemed..... 67,015 71,850 14,286
Investment advisory fee payable (Note
2)................................... 159,940 69,040 21,520
Due to custodian bank................ -- -- --
Accrued expenses and other payables.. 92,387 51,744 23,094
------------ ------------ -----------
TOTAL LIABILITIES.................... 319,342 192,634 278,900
------------ ------------ -----------
NET ASSETS............................ $285,823,605 $129,633,859 $48,283,839
============ ============ ===========
NET ASSETS consist of:
Undistributed (distributions in
excess of) net investment income
(loss)............................... $ 556,115 $ 937,432 $ 81,736
Accumulated net realized gain (loss)
on investments....................... 3,024,755 1,578,377 817,984
Unrealized appreciation of
investments and foreign currency
translations......................... 65,135,527 32,703,432 8,977,843
Par value (Note 4)................... 11,293 8,653 4,876
Paid-in capital in excess of par
value................................ 217,095,915 94,405,965 38,401,400
------------ ------------ -----------
TOTAL NET ASSETS...................... $285,823,605 $129,633,859 $48,283,839
============ ============ ===========
SHARES:
Net Assets........................... $285,823,605 $129,633,859 $48,283,839
Shares of Common Stock Outstanding... 11,293,033 8,652,523 4,876,065
Net Asset Value Per Share............ $25.31 $14.98 $9.90
============ ============ ===========
TRUST SHARES:
Net Assets........................... -- -- --
Shares of Common Stock Outstanding... -- -- --
Net Asset Value Per Share............ -- -- --
</TABLE>
See Notes to Financial Statements
2
<PAGE>
<TABLE>
<CAPTION>
BUSINESS AND COMMUNICATION ENVIRONMENTALLY- LONG-TERM
INDUSTRIAL AND EARLY LIFE RELATED PRODUCTS GLOBAL SUPPLY PRODUCTIVITY
RESTRUCTURING ENTERTAINMENT CYCLE AND SERVICES COMPETITORS OF ENERGY ENHANCERS
FUND FUND FUND FUND FUND FUND FUND
------------- ------------- ----------- ---------------- ----------- ----------- ------------
<S> <C> <C> <C> <C> <C> <C>
$77,410,440 $43,548,141 $81,249,471 $4,814,748 $69,947,248 $23,738,985 $24,578,871
=========== =========== =========== ========== =========== =========== ===========
$97,064,239 $51,334,378 $87,808,334 $6,422,128 $85,227,384 $28,518,525 $26,947,750
-- 546 413 200,565 335 841 115
166,613 21,601 8,120 4,285 73,420 34,109 12,643
8,841 40,638 18,649 1,816 15,340 15,740 1,880
-- -- -- -- -- -- --
345,635 250,250 178,680 12,237 185,901 61,077 42,596
5,142 -- -- -- 567 -- --
353 294 499 30 333 160 196
5,253 5,254 5,253 5,253 5,253 5,253 5,253
----------- ----------- ----------- ---------- ----------- ----------- -----------
97,596,076 51,652,961 88,019,948 6,646,314 85,508,533 28,635,705 27,010,433
1,588,143 257,600 -- -- -- -- 127,680
6,534 6,236 45,508 2,863 8,635 6,735 4,832
40,982 22,280 36,327 1,123 37,749 12,692 12,309
42,494 -- -- -- -- -- --
27,390 20,376 32,906 9,362 27,951 16,383 22,850
----------- ----------- ----------- ---------- ----------- ----------- -----------
1,705,543 306,492 114,741 13,348 74,335 35,810 167,671
----------- ----------- ----------- ---------- ----------- ----------- -----------
$95,890,533 $51,346,469 $87,905,207 $6,632,966 $85,434,198 $28,599,895 $26,842,762
=========== =========== =========== ========== =========== =========== ===========
$ 236,176 $ 25,817 $ (123,545) $ 2,720 $ 159,481 $ 73,624 $ (32,525)
1,316,509 (223,216) 2,506,162 (248,408) 30,005 2,336,153 (1,240,432)
19,653,684 7,786,237 6,558,863 1,607,380 15,280,104 4,779,540 2,368,879
6,464 4,695 8,332 732 7,569 2,628 3,249
74,677,700 43,752,936 78,955,395 5,270,542 69,957,039 21,407,950 25,743,591
----------- ----------- ----------- ---------- ----------- ----------- -----------
$95,890,533 $51,346,469 $87,905,207 $6,632,966 $85,434,198 $28,599,895 $26,842,762
=========== =========== =========== ========== =========== =========== ===========
$95,854,203 $51,346,469 $87,902,442 $6,632,966 $85,434,198 $28,599,895 $26,842,762
6,461,307 4,695,310 8,331,525 732,035 7,569,132 2,627,946 3,248,692
$14.84 $10.94 $10.55 $9.06 $11.29 $10.88 $8.26
====== ====== ====== ===== ====== ====== =====
$36,330 -- $2,765 -- -- -- --
2,449 -- 262 -- -- -- --
$14.83 -- $10.55 -- -- -- --
====== ======
</TABLE>
See Notes to Financial Statements
3
<PAGE>
EXCELSIOR FUNDS, INC.
STATEMENTS OF OPERATIONS
SIX MONTHS ENDED SEPTEMBER 30, 1996 (UNAUDITED)
<TABLE>
<CAPTION>
INCOME AND AGING OF
EQUITY GROWTH AMERICA
FUND FUND FUND
----------- ---------- ----------
<S> <C> <C> <C>
INVESTMENT INCOME:
Interest income....................... $ 352,364 $1,238,593 $ 62,874
Dividend income....................... 1,770,838 977,874 325,866
Less: Foreign taxes withheld.......... -- (2,348) --
----------- ---------- ----------
TOTAL INCOME.......................... 2,123,202 2,214,119 388,740
EXPENSES:
Investment advisory fees (Note 2)..... 922,972 477,989 140,583
Administrators' fees (Note 2)......... 189,517 98,147 36,083
Administrative servicing fees (Note
2).................................... 71,520 51,945 8,903
Shareholder servicing agent fees ..... 55,100 34,350 15,153
Custodian fees ....................... 46,042 26,719 11,980
Registration and filing fees.......... 6,307 4,628 6,516
Legal and audit fees.................. 13,919 8,214 4,196
Directors' fees and expenses (Note
2).................................... 4,315 2,681 977
Shareholder reports................... 8,196 3,209 1,793
Amortization of organization costs
(Note 5).............................. -- -- 2,094
Distribution fees -- Trust Shares
(Note 2).............................. -- -- --
Miscellaneous expenses................ 4,372 2,976 1,358
----------- ---------- ----------
TOTAL EXPENSES........................ 1,322,260 710,858 229,636
Fees waived by investment adviser and
administrators (Note 2)............... (71,520) (51,945) (8,903)
----------- ---------- ----------
NET EXPENSES.......................... 1,250,740 658,913 220,733
----------- ---------- ----------
NET INVESTMENT INCOME (LOSS)........... 872,462 1,555,206 168,007
----------- ---------- ----------
REALIZED AND UNREALIZED GAIN (LOSS) ON
INVESTMENTS (NOTE 1):
Net realized gain (loss):
Security transactions................. 3,026,641 1,591,242 1,129,585
Foreign currency translations......... -- (7,539) --
----------- ---------- ----------
Total net realized gain (loss)........ 3,026,641 1,583,703 1,129,585
Change in unrealized appreciation
(depreciation) of investments and
foreign currency translations during
the period............................ 9,762,163 4,536,856 (751,173)
----------- ---------- ----------
NET REALIZED AND UNREALIZED GAIN
(LOSS) ON INVESTMENTS................. 12,788,804 6,120,559 378,412
----------- ---------- ----------
NET INCREASE (DECREASE) IN NET ASSETS
RESULTING FROM OPERATIONS............. $13,661,266 $7,675,765 $ 546,419
=========== ========== ==========
</TABLE>
+ The Excelsior Fund began offering Trust Shares on September 19, 1996 and
September 6, 1996 for Business and Industrial Restructuring Fund and Early
Life Cycle Fund, respectively.
See Notes to Financial Statements
4
<PAGE>
<TABLE>
<CAPTION>
BUSINESS AND COMMUNICATION ENVIRONMENTALLY- LONG-TERM
INDUSTRIAL AND EARLY LIFE RELATED PRODUCTS GLOBAL SUPPLY PRODUCTIVITY
RESTRUCTURING ENTERTAINMENT CYCLE AND SERVICES COMPETITORS OF ENERGY ENHANCERS
FUND+ FUND FUND+ FUND FUND FUND FUND
------------- ------------- ----------- ---------------- ----------- ---------- ------------
<S> <C> <C> <C> <C> <C> <C>
$ 35,529 $ 141,280 $ 138,704 $ 10,161 $ 115,629 $ 66,510 $ 21,045
785,336 125,747 125,857 19,221 548,406 196,765 84,073
(5,067) -- -- -- (3,358) -- --
---------- ---------- ----------- -------- ---------- ---------- ---------
815,798 267,027 264,561 29,382 660,677 263,275 105,118
250,356 152,276 257,599 15,982 234,345 78,091 82,921
64,258 39,084 66,117 5,903 60,149 20,063 21,232
18,641 12,379 38,419 1,533 14,129 5,589 6,673
23,289 23,005 26,305 3,671 17,111 6,169 7,283
16,584 8,977 14,768 2,700 14,744 6,085 14,482
6,564 6,552 6,542 4,331 6,302 3,951 4,666
7,034 4,377 7,191 423 6,401 2,076 2,286
1,665 1,087 1,793 105 1,551 526 628
3,040 1,979 3,289 205 2,863 950 1,101
2,093 2,094 2,094 2,094 2,093 2,093 2,094
4 -- -- -- -- -- --
1,843 1,621 2,408 431 1,771 1,234 1,242
---------- ---------- ----------- -------- ---------- ---------- ---------
395,371 253,431 426,525 37,378 361,459 126,827 144,608
(18,641) (12,379) (38,419) (10,716) (14,129) (5,589) (6,965)
---------- ---------- ----------- -------- ---------- ---------- ---------
376,730 241,052 388,106 26,662 347,330 121,238 137,643
---------- ---------- ----------- -------- ---------- ---------- ---------
439,068 25,975 (123,545) 2,720 313,347 142,037 (32,525)
---------- ---------- ----------- -------- ---------- ---------- ---------
1,454,936 (223,215) 2,539,481 235,680 117,187 2,336,152 (649,434)
(584) -- -- -- (521) -- 238
---------- ---------- ----------- -------- ---------- ---------- ---------
1,454,352 (223,215) 2,539,481 235,680 116,666 2,336,152 (649,196)
4,545,215 2,999,844 (3,574,692) 597,001 3,275,557 1,223,017 1,438,803
---------- ---------- ----------- -------- ---------- ---------- ---------
5,999,567 2,776,629 (1,035,211) 832,681 3,392,223 3,559,169 789,607
---------- ---------- ----------- -------- ---------- ---------- ---------
$6,438,635 $2,802,604 $(1,158,756) $835,401 $3,705,570 $3,701,206 $ 757,082
========== ========== =========== ======== ========== ========== =========
</TABLE>
See Notes to Financial Statements
5
<PAGE>
EXCELSIOR FUNDS, INC.
STATEMENTS OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
INCOME AND AGING OF
EQUITY GROWTH AMERICA
FUND FUND FUND
------------ ------------ -----------
<S> <C> <C> <C>
SIX MONTHS ENDED SEPTEMBER 30, 1996
(UNAUDITED)
Net investment income (loss)........ $ 872,462 $ 1,555,206 $ 168,007
Net realized gain (loss) on
investments........................ 3,026,641 1,583,703 1,129,585
Change in unrealized appreciation
(depreciation) of investments and
foreign currency translations
during the period.................. 9,762,163 4,536,856 (751,173)
------------ ------------ -----------
Net increase (decrease) in net
assets resulting from operations... 13,661,266 7,675,765 546,419
Distributions to shareholders:
From net investment income:
Shares............................. (426,927) (1,610,638) (134,298)
Trust Shares....................... -- -- --
From net realized gain on
investments:
Shares............................. (4,683,445) (1,474,414) --
Trust Shares....................... -- -- --
------------ ------------ -----------
Total distributions............... (5,110,372) (3,085,052) (134,298)
------------ ------------ -----------
Increase (decrease) in net assets
from fund share transactions (Note
4):
Shares............................. 88,698,907 (2,451,521) 3,079,945
Trust Shares....................... -- -- --
------------ ------------ -----------
Total from fund share
transactions..................... 88,698,907 (2,451,521) 3,079,945
------------ ------------ -----------
Net increase (decrease) in net
assets............................. 97,249,801 2,139,192 3,492,066
NET ASSETS:
Beginning of period................ 188,573,804 127,494,667 44,791,773
------------ ------------ -----------
End of period (1).................. $285,823,605 $129,633,859 $48,283,839
============ ============ ===========
YEAR ENDED MARCH 31, 1996
Net investment income (loss)........ $ 892,355 $ 3,359,989 $ 179,442
Net realized gain on investments.... 12,290,132 3,102,820 229,173
Change in unrealized appreciation
(depreciation) of investments and
foreign currency translations
during the year.................... 24,331,637 19,139,107 7,454,373
------------ ------------ -----------
Net increase in net assets resulting
from operations.................... 37,514,124 25,601,916 7,862,988
Distributions to shareholders:
From net investment income......... (775,213) (2,643,489) (162,762)
In excess of net investment
income............................ -- -- --
From net realized gain on
investments....................... (14,900,357) (495,121) --
In excess of net realized gain on
investments....................... -- -- --
Increase (decrease) in net assets
from fund share transactions (Note
4)................................. 29,318,351 5,106,774 14,917,963
------------ ------------ -----------
Net increase (decrease) in net
assets............................. 51,156,905 27,570,080 22,618,189
NET ASSETS:
Beginning of year.................. 137,416,899 99,924,587 22,173,584
------------ ------------ -----------
End of year (2).................... $188,573,804 $127,494,667 $44,791,773
============ ============ ===========
</TABLE>
(1) Including undistributed (distributions in excess of) net investment income
of $556,115 for Equity Fund, $937,432 for Income and Growth Fund, $81,736
for Aging of America Fund, $236,176 for Business and Industrial
Restructuring Fund, $25,817 for Communication and Entertainment Fund,
($123,545) for Early Life Cycle Fund, $2,720 for Environmentally-Related
Products and Services Fund, $159,481 for Global Competitors Fund, $73,624
for Long-Term Supply of Energy Fund and ($32,525) for Productivity
Enhancers Fund.
(2) Including undistributed (distributions in excess of) net investment income
of $110,580 for Equity Fund, $992,864 for Income and Growth Fund, $48,027
for Aging of America Fund, $137,328 for Business and Industrial
Restructuring Fund, ($158) for Communication and Entertainment Fund,
$121,474 for Global Competitors Fund and $38,043 for Long-Term Supply of
Energy Fund.
(3) The Excelsior Fund began offering Trust Shares on September 19, 1996 and
September 6, 1996 for Business and Industrial Restructuring Fund and Early
Life Cycle Fund, respectively.
See Notes to Financial Statements
6
<PAGE>
<TABLE>
<CAPTION>
BUSINESS AND COMMUNICATION ENVIRONMENTALLY- LONG-TERM
INDUSTRIAL AND EARLY LIFE RELATED PRODUCTS GLOBAL SUPPLY PRODUCTIVITY
RESTRUCTURING ENTERTAINMENT CYCLE AND SERVICES COMPETITORS OF ENERGY ENHANCERS
FUND(3) FUND FUND(3) FUND FUND FUND FUND
------------- ------------- ------------ ---------------- ----------- ----------- ------------
<S> <C> <C> <C> <C> <C> <C>
$ 439,068 $ 25,975 $ (123,545) $ 2,720 $ 313,347 $ 142,037 $ (32,525)
1,454,352 (223,215) 2,539,481 235,680 116,666 2,336,152 (649,196)
4,545,215 2,999,844 (3,574,692) 597,001 3,275,557 1,223,017 1,438,803
----------- ----------- ------------ ----------- ----------- ----------- -----------
6,438,635 2,802,604 (1,158,756) 835,401 3,705,570 3,701,206 757,082
(340,220) -- -- -- (275,340) (106,456) --
-- -- -- -- -- -- --
(1,356,232) (243,367) (2,045,462) -- -- (260,419) (2,588,996)
-- -- (1) -- -- -- --
----------- ----------- ------------ ----------- ----------- ----------- -----------
(1,696,452) (243,367) (2,045,463) -- (275,340) (366,875) (2,588,996)
----------- ----------- ------------ ----------- ----------- ----------- -----------
17,060,282 1,837,892 13,045,958 1,850,799 10,699,477 1,971,073 (394,603)
35,765 -- 2,622 -- -- -- --
----------- ----------- ------------ ----------- ----------- ----------- -----------
17,096,047 1,837,892 13,048,580 1,850,799 10,699,477 1,971,073 (394,603)
----------- ----------- ------------ ----------- ----------- ----------- -----------
21,838,230 4,397,129 9,844,361 2,686,200 14,129,707 5,305,404 (2,226,517)
74,052,303 46,949,340 78,060,846 3,946,766 71,304,491 23,294,491 29,069,279
----------- ----------- ------------ ----------- ----------- ----------- -----------
$95,890,533 $51,346,469 $ 87,905,207 $ 6,632,966 $85,434,198 $28,599,895 $26,842,762
=========== =========== ============ =========== =========== =========== ===========
$ 430,247 $ 112,007 $ (110,895) $ (7,710) $ 327,789 $ 183,715 $ 53,347
2,629,951 2,474,867 3,934,385 31,865 721,363 521,934 5,861,616
11,536,487 1,240,983 6,178,733 923,672 9,216,453 3,435,626 (172,413)
----------- ----------- ------------ ----------- ----------- ----------- -----------
14,596,685 3,827,857 10,002,223 947,827 10,265,605 4,141,275 5,742,550
(345,537) (105,302) -- -- (257,433) (168,020) (53,347)
-- -- -- -- -- -- (50,322)
(987,000) (2,340,896) (4,027,696) -- (85,339) -- (4,101,238)
-- -- -- -- (86,658) -- --
30,605,398 15,653,291 24,303,965 (1,360,084) 35,973,688 3,508,362 9,266,366
----------- ----------- ------------ ----------- ----------- ----------- -----------
43,869,546 17,034,950 30,278,492 (412,257) 45,809,863 7,481,617 10,804,009
30,182,757 29,914,390 47,782,354 4,359,023 25,494,628 15,812,874 18,265,270
----------- ----------- ------------ ----------- ----------- ----------- -----------
$74,052,303 $46,949,340 $ 78,060,846 $ 3,946,766 $71,304,491 $23,294,491 $29,069,279
=========== =========== ============ =========== =========== =========== ===========
</TABLE>
See Notes to Financial Statements
7
<PAGE>
EXCELSIOR FUNDS, INC.
FINANCIAL HIGHLIGHTS -- SELECTED PER SHARE DATA AND RATIOS
For a Fund share outstanding throughout each period.
<TABLE>
<CAPTION>
NET REALIZED DISTRIBUTIONS
NET ASSET NET AND UNREALIZED DIVIDENDS DIVIDENDS FROM NET
VALUE, INVESTMENT GAIN (LOSS) TOTAL FROM FROM NET IN EXCESS OF REALIZED GAIN
BEGINNING INCOME ON INVESTMENTS INVESTMENT INVESTMENT NET INVESTMENT ON INVESTMENTS
OF PERIOD (LOSS) AND OPTIONS OPERATIONS INCOME INCOME AND OPTIONS
--------- ---------- -------------- ---------- ---------- -------------- --------------
<S> <C> <C> <C> <C> <C> <C> <C>
EQUITY FUND -- (4/25/85*)
Year Ended March 31,
1992.................... $14.13 $0.13 $2.23 $2.36 $(0.21) $0.00 $0.00
1993.................... 16.28 0.08 3.01 3.09 (0.09) 0.00 (0.51)
1994.................... 18.77 0.05 1.16 1.21 (0.08) 0.00 (0.39)
1995.................... 19.17 0.07 2.67 2.74 (0.04) 0.00 (0.47)
1996.................... 21.40 0.12 5.21 5.33 (0.11) 0.00 (2.19)
Six Months Ended
September 30, 1996
(Unaudited)............ 24.43 0.09 1.44 1.53 (0.05) 0.00 (0.60)
INCOME AND GROWTH FUND -- (1/6/87*)
Year Ended March 31,
1992.................... $ 8.36 $0.30 $0.72 $1.02 $(0.28) $0.00 $0.00
1993.................... 9.10 0.27 2.43 2.70 (0.35) 0.00 0.00
1994.................... 11.45 0.31 0.46 0.77 (0.27) 0.00 (0.01)
1995.................... 11.94 0.38 0.26 0.64 (0.35) 0.00 (0.41)
1996.................... 11.82 0.39 2.61 3.00 (0.31) 0.00 (0.06)
Six Months Ended
September 30, 1996
(Unaudited)............ 14.45 0.18 0.70 0.88 (0.18) 0.00 (0.17)
AGING OF AMERICA FUND -- (12/31/92*)
Period Ended March 31,
1993................... $ 7.00 $0.01 $0.00 $0.01 $ 0.00 $0.00 $0.00
Year Ended March 31,
1994................... 7.01 0.03 (0.02) 0.01 (0.03) 0.00 0.00
Year Ended March 31,
1995................... 6.99 0.04 0.85 0.89 (0.04) 0.00 0.00
Year Ended March 31,
1996................... 7.84 0.05 1.97 2.02 (0.05) 0.00 0.00
Six Months Ended
September 30, 1996
(Unaudited)............ 9.81 0.03 0.09 0.12 (0.03) 0.00 0.00
BUSINESS AND INDUSTRIAL RESTRUCTURING FUND -- (12/31/92*)
Period Ended March 31,
1993................... $ 7.00 $0.02 $0.69 $0.71 $ 0.00 $0.00 $0.00
Year Ended March 31,
1994................... 7.71 0.06 1.96 2.02 (0.07) 0.00 (0.02)
Year Ended March 31,
1995................... 9.64 0.07 1.02 1.09 (0.06) 0.00 (0.12)
Year Ended March 31,
1996................... 10.55 0.10 3.71 3.81 (0.09) 0.00 (0.24)
Six Months Ended
September 30, 1996
(Unaudited)............ 14.03 0.07 1.04 1.11 (0.06) 0.00 (0.24)
Trust Shares --
(9/19/96*)
Period Ended September
30, 1996 (Unaudited)... 14.61 0.01 0.21 0.22 0.00 0.00 0.00
COMMUNICATION AND ENTERTAINMENT FUND -- (12/31/92*)
Period Ended March 31,
1993................... $ 7.00 $0.01 $0.60 $0.61 $ 0.00 $0.00 $0.00
Year Ended March 31,
1994................... 7.61 0.02 1.52 1.54 (0.03) 0.00 (0.37)
Year Ended March 31,
1995................... 8.75 0.04 1.06 1.10 (0.04) 0.00 (0.17)
Year Ended March 31,
1996................... 9.64 0.03 1.30 1.33 (0.03) 0.00 (0.62)
Six Months Ended
September 30, 1996
(Unaudited)............ 10.32 0.01 0.66 0.67 0.00 0.00 (0.05)
</TABLE>
* Commencement of operations.
** Not annualized.
*** Annualized.
+ Total return data does not reflect the sales load payable on purchases of
shares.
++ Expense ratios before waiver of fees and reimbursement of expenses (if
any) by adviser and administrators.
+++ Portfolio turnover calculation excludes in-kind transfers, if any, of
securities. See Note 3.
# Beginning with fiscal year 1996, The Funds are required to disclose the
average commission rate per share it paid for portfolio trades, on which
commissions were charged, during the period.
See Notes to Financial Statements
8
<PAGE>
<TABLE>
<CAPTION>
DISTRIBUTIONS IN RATIO OF NET RATIO OF GROSS RATIO OF NET
EXCESS OF NET NET ASSETS, OPERATING OPERATING INVESTMENT
REALIZED GAIN NET ASSET END EXPENSES EXPENSES INCOME (LOSS) PORTFOLIO FEE
ON INVESTMENTS TOTAL VALUE, END TOTAL OF PERIOD TO AVERAGE TO AVERAGE TO AVERAGE TURNOVER WAIVERS
AND OPTIONS DISTRIBUTIONS OF PERIOD RETURN+ (000) NET ASSETS NET ASSETS ++ NET ASSETS RATE+++ (NOTE 2)
- ---------------- ------------- ---------- ------- ----------- ------------ -------------- ------------- --------- --------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
$ 0.00 $(0.21) $16.28 16.87% $ 71,614 1.15% 1.15% 0.87% 20% $0.00
0.00 (0.60) 18.77 19.26% 106,144 1.08% 1.08% 0.51% 24% 0.00
(0.34) (0.81) 19.17 6.54% 122,262 1.14% 1.14% 0.25% 17% 0.00
0.00 (0.51) 21.40 14.65% 137,417 1.05% 1.08% 0.36% 23% 0.00
0.00 (2.30) 24.43 26.45% 188,574 1.05% 1.12% 0.55% 27% 0.02
0.00 (0.65) 25.31 6.32%** 285,824 1.02%*** 1.07%*** 0.71%*** 50%*** 0.01
$ 0.00 $(0.28) $ 9.10 12.42% $ 23,254 1.23% 1.23% 3.52% 81% $0.00
0.00 (0.35) 11.45 30.45% 51,303 1.15% 1.15% 2.76% 28% 0.00
0.00 (0.28) 11.94 6.69% 96,682 1.17% 1.17% 2.77% 28% 0.00
0.00 (0.76) 11.82 5.74% 99,925 1.06% 1.09% 3.31% 36% 0.00
0.00 (0.37) 14.45 25.83% 127,495 1.05% 1.11% 2.95% 22% 0.01
0.00 (0.35) 14.98 6.17%** 129,634 1.03%*** 1.11%*** 2.44%*** 27%*** 0.01
$ 0.00 $ 0.00 $ 7.01 0.14% $ 2,389 0.99%*** 3.87%*** 0.77%*** 14%*** $0.03
0.00 (0.03) 6.99 0.13% 10,583 0.99% 1.82% 0.59% 24% 0.04
0.00 (0.04) 7.84 12.80% 22,174 0.99% 1.26% 0.63% 14% 0.02
0.00 (0.05) 9.81 25.80% 44,792 0.93% 0.97% 0.54% 34% 0.00
0.00 (0.03) 9.90 1.21%** 48,284 0.94%*** 0.98%*** 0.72%*** 79%*** 0.00
$ 0.00 $ 0.00 $ 7.71 10.14% $ 1,935 0.99%*** 5.85%*** 2.48%*** 9%*** $0.04
0.00 (0.09) 9.64 26.40% 14,440 0.99% 1.73% 0.77% 75% 0.06
0.00 (0.18) 10.55 11.49% 30,183 0.98% 1.08% 0.83% 82% 0.01
0.00 (0.33) 14.03 36.48% 74,052 0.91% 0.95% 0.88% 56% 0.00
0.00 (0.30) 14.84 7.98%** 95,891 0.90%*** 0.95%*** 1.05%*** 52%*** 0.00
0.00 0.00 14.83 1.51%** 36 1.25%*** 1.51%*** 2.83%*** 52%*** 0.00
$ 0.00 $ 0.00 $ 7.61 8.71% $ 5,785 0.99%*** 2.20%*** 1.06%*** 25%*** $0.01
0.00 (0.40) 8.75 20.07% 21,024 0.98% 1.16% 0.29% 60% 0.01
0.00 (0.21) 9.64 12.87% 29,914 0.98% 1.06% 0.46% 56% 0.01
0.00 (0.65) 10.32 13.48% 46,949 0.92% 0.97% 0.28% 65% 0.00
0.00 (0.05) 10.94 6.47%** 51,346 0.95%*** 1.00%*** 0.10%*** 59%*** 0.00
<CAPTION>
DISTRIBUTIONS IN
EXCESS OF NET
REALIZED GAIN AVERAGE
ON INVESTMENTS COMMISSION
AND OPTIONS RATE#
- ---------------- ----------
<S> <C>
$ 0.00 N/A
0.00 N/A
(0.34) N/A
0.00 N/A
0.00 N/A
0.00 $0.0599
$ 0.00 N/A
0.00 N/A
0.00 N/A
0.00 N/A
0.00 N/A
0.00 $0.0879
$ 0.00 N/A
0.00 N/A
0.00 N/A
0.00 N/A
0.00 $0.0825
$ 0.00 N/A
0.00 N/A
0.00 N/A
0.00 N/A
0.00 $0.0786
0.00 $0.0786
$ 0.00 N/A
0.00 N/A
0.00 N/A
0.00 N/A
0.00 $0.0557
</TABLE>
See Notes to Financial Statements
9
<PAGE>
EXCELSIOR FUNDS, INC.
FINANCIAL HIGHLIGHTS -- SELECTED PER SHARE DATA AND RATIOS (CONTINUED)
For a Fund share outstanding throughout each period.
<TABLE>
<CAPTION>
NET REALIZED DISTRIBUTIONS
NET ASSET NET AND UNREALIZED DIVIDENDS DIVIDENDS FROM NET
VALUE, INVESTMENT GAIN (LOSS) TOTAL FROM FROM NET IN EXCESS OF REALIZED GAIN
BEGINNING INCOME ON INVESTMENTS INVESTMENT INVESTMENT NET INVESTMENT ON INVESTMENTS
OF PERIOD (LOSS) AND OPTIONS OPERATIONS INCOME INCOME AND OPTIONS
--------- ---------- -------------- ---------- ---------- -------------- --------------
<S> <C> <C> <C> <C> <C> <C> <C>
EARLY LIFE CYCLE FUND -- (12/31/92*)
Period Ended March 31,
1993................... $7.00 $ 0.00 $ 0.40 $ 0.40 $0.00 $0.00 $ 0.00
Year Ended March 31,
1994................... 7.40 (0.01) 1.36 1.35 0.00 0.00 (0.09)
Year Ended March 31,
1995................... 8.66 (0.02) 1.31 1.29 0.00 0.00 (0.18)
Year Ended March 31,
1996................... 9.77 (0.02) 1.72 1.70 0.00 0.00 (0.69)
Six Months Ended
September 30, 1996
(Unaudited)............ 10.78 (0.01) 0.06 0.05 0.00 0.00 (0.28)
Trust Shares --
(9/6/96*)
Period Ended September
30, 1996 (Unaudited)... 9.98 0.00 0.57 0.57 0.00 0.00 0.00
ENVIRONMENTALLY-RELATED PRODUCTS AND SERVICES FUND -- (12/31/92*)
Period Ended March 31,
1993................... $7.00 $ 0.00 $(0.05) $(0.05) $0.00 $0.00 $ 0.00
Year Ended March 31,
1994................... 6.95 0.00 (0.71) (0.71) 0.00 0.00 0.00
Year Ended March 31,
1995................... 6.24 (0.01) (0.01) (0.02) 0.00 (0.01) 0.00
Year Ended March 31,
1996................... 6.21 (0.02) 1.54 1.52 0.00 0.00 0.00
Six Months Ended
September 30, 1996
(Unaudited)............ 7.73 0.00 1.33 1.33 0.00 0.00 0.00
GLOBAL COMPETITORS FUND -- (12/31/92*)
Period Ended March 31,
1993................... $7.00 $ 0.01 $ 0.27 $ 0.28 $0.00 $0.00 $ 0.00
Year Ended March 31,
1994................... 7.28 0.05 0.41 0.46 (0.05) 0.00 0.00
Year Ended March 31,
1995................... 7.69 0.07 0.90 0.97 (0.07) 0.00 0.00
Year Ended March 31,
1996................... 8.59 0.07 2.27 2.34 (0.06) 0.00 (0.02)
Six Months Ended
September 30, 1996
(Unaudited)............ 10.83 0.04 0.46 0.50 (0.04) 0.00 0.00
LONG-TERM SUPPLY OF ENERGY FUND -- (12/31/92*)
Period Ended March 31,
1993................... $7.00 $ 0.01 $ 0.80 $ 0.81 $0.00 $0.00 $ 0.00
Year Ended March 31,
1994................... 7.81 0.08 (0.12) (0.04) (0.07) 0.00 0.00
Year Ended March 31,
1995................... 7.70 0.09 0.24 0.33 (0.10) 0.00 (0.01)
Year Ended March 31,
1996................... 7.92 0.07 1.63 1.70 (0.07) 0.00 0.00
Six Months Ended
September 30, 1996
(Unaudited)............ 9.55 0.06 1.42 1.48 (0.04) 0.00 (0.11)
PRODUCTIVITY ENHANCERS FUND -- (12/31/92*)
Period Ended March 31,
1993................... $7.00 $ 0.01 $(0.07) $(0.06) $0.00 $0.00 $ 0.00
Year Ended March 31,
1994................... 6.94 0.00 0.96 0.96 0.00 (0.02) 0.00
Year Ended March 31,
1995................... 7.88 (0.01) 0.35 0.34 0.00 0.00 (0.10)
Year Ended March 31,
1996................... 8.12 0.02 2.12 2.14 (0.02) (0.01) (1.40)
Six Months Ended
September 30, 1996
(Unaudited)............ 8.83 (0.01) 0.24 0.23 0.00 0.00 (0.80)
</TABLE>
* Commencement of operations
** Not annualized
*** Annualized
+ Total return data does not reflect the sales load payable on purchases of
shares.
++ Expense ratios before waiver of fees and reimbursement of expenses (if
any) by adviser and administrators.
+++ Portfolio turnover calculations excludes in-kind transfer, if any, of
securities. See Note 3.
# Beginning with fiscal year 1996, The Funds are required to disclose the
average commission rate per share it paid for portfolio trades, on which
commissions were charged, during the period.
See Notes to Financial Statements
10
<PAGE>
<TABLE>
<CAPTION>
DISTRIBUTIONS IN RATIO OF NET RATIO OF GROSS RATIO OF NET
EXCESS OF NET NET ASSETS, OPERATING OPERATING INVESTMENT
REALIZED GAIN NET ASSET END EXPENSES EXPENSES INCOME (LOSS) PORTFOLIO FEE
ON INVESTMENTS TOTAL VALUE, END TOTAL OF PERIOD TO AVERAGE TO AVERAGE TO AVERAGE TURNOVER WAIVERS
AND OPTIONS DISTRIBUTIONS OF PERIOD RETURN+ (000) NET ASSETS NET ASSETS ++ NET ASSETS RATE+++ (NOTE 2)
- ---------------- ------------- ---------- ------- ----------- ------------ -------------- ------------- --------- --------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
$0.00 $ 0.00 $ 7.40 5.71% $ 5,512 0.99%*** 2.70%*** 0.12%*** 4%*** $0.01
0.00 (0.09) 8.66 18.27% 24,951 0.95% 1.15% (0.25)% 20% 0.01
0.00 (0.18) 9.77 15.16% 47,782 0.96% 1.04% (0.23)% 42% 0.01
0.00 (0.69) 10.78 18.29% 78,061 0.90% 0.98% (0.17)% 38% 0.01
0.00 (0.28) 10.55 0.15%** 87,905 0.90%*** 0.99%*** (0.29)%*** 42%*** 0.00
0.00 0.00 10.55 (5.71)%** 2,769 1.25%*** 1.25%*** (0.59)%*** 42%*** 0.00
$0.00 $ 0.00 $ 6.95 (0.71)% $ 2,452 0.99%*** 2.83%*** 0.32%*** 0%*** $0.02
0.00 0.00 6.24 (10.15)% 4,533 0.99% 2.20% (0.07)% 28% 0.05
0.00 (0.01) 6.21 (0.27)% 4,359 0.99% 2.42% (0.10)% 61% 0.09
0.00 0.00 7.73 24.48% 3,947 0.99% 2.46% (0.18)% 64% 0.12
0.00 0.00 9.06 17.21%** 6,633 0.99%*** 1.39%*** 0.10%*** 50%*** 0.01
$0.00 $ 0.00 $ 7.28 4.00% $ 2,037 0.99%*** 3.97%*** 0.82%*** 0%*** $0.03
0.00 (0.05) 7.69 6.29% 10,059 0.99% 1.72% 0.81% 19% 0.05
0.00 (0.07) 8.59 12.73% 25,495 0.97% 1.18% 1.04% 29% 0.01
(0.02) (0.10) 10.83 27.39% 71,304 0.89% 0.93% 0.73% 17% 0.00
0.00 (0.04) 11.29 4.63%** 85,434 0.89%*** 0.92%*** 0.80%*** 7%*** 0.00
$0.00 $ 0.00 $ 7.81 11.57% $ 1,457 0.99%*** 7.03%*** 1.69%*** 0%*** $0.05
0.00 (0.07) 7.70 (0.57)% 6,830 0.99% 2.03% 1.21% 6% 0.07
0.00 (0.11) 7.92 4.28% 15,813 0.98% 1.35% 1.18% 31% 0.03
0.00 (0.07) 9.55 21.60% 23,294 0.96% 1.09% 0.88% 43% 0.01
0.00 (0.15) 10.88 15.57%** 28,600 0.93%*** 0.97%*** 1.09%*** 101%*** 0.00
$0.00 $ 0.00 $ 6.94 (0.86)% $ 3,369 0.99%*** 4.23%*** 1.29%*** 183%*** $0.03
0.00 (0.02) 7.88 13.81% 15,702 0.99% 1.49% 0.01% 198% 0.10
0.00 (0.10) 8.12 4.45% 18,265 0.99% 1.21% (0.10)% 276% 0.02
0.00 (1.43) 8.83 26.97% 29,069 0.98% 1.06% 0.20% 472% 0.01
0.00 (0.80) 8.26 2.14%** 26,843 0.99%*** 1.04%*** (0.23)%*** 322%*** 0.00
<CAPTION>
DISTRIBUTIONS IN
EXCESS OF NET
REALIZED GAIN AVERAGE
ON INVESTMENTS COMMISSION
AND OPTIONS RATE#
- ---------------- ----------
<S> <C>
$0.00 N/A
0.00 N/A
0.00 N/A
0.00 N/A
0.00 $0.0424
0.00 $0.0424
$0.00 N/A
0.00 N/A
0.00 N/A
0.00 N/A
0.00 $0.0758
$0.00 N/A
0.00 N/A
0.00 N/A
(0.02) N/A
0.00 $0.0886
$0.00 N/A
0.00 N/A
0.00 N/A
0.00 N/A
0.00 $0.0752
$0.00 N/A
0.00 N/A
0.00 N/A
0.00 N/A
0.00 $0.0803
</TABLE>
See Notes to Financial Statements
11
<PAGE>
EXCELSIOR FUNDS, INC.
PORTFOLIO OF INVESTMENTS SEPTEMBER 30, 1996 (UNAUDITED)
EQUITY FUND
<TABLE>
<CAPTION>
VALUE
SHARES (NOTE 1)
------- ------------
<C> <S> <C>
COMMON STOCKS -- 94.16%
FINANCIAL -- 24.70%
121,200 Associates First Capital Corp. ......................... $ 4,969,200
100,000 Firstar Corp............................................ 4,825,000
185,000 Fleet Financial Group, Inc.............................. 8,232,500
43,240 General Re Corp......................................... 6,129,270
70,000 MBIA, Inc............................................... 6,002,500
151,038 Mellon Bank Corp. ...................................... 8,949,002
122,360 Morgan Stanley Group, Inc. ............................. 6,087,410
120,000 State Street Boston Corp................................ 6,885,000
300,000 United Asset Management Corp............................ 7,087,500
120,000 UNUM Corp. ............................................. 7,695,000
100,000 Washington Mutual, Inc.................................. 3,725,000
------------
70,587,382
------------
CONSUMER CYCLICAL -- 15.70%
186,000 Centex Corp............................................. 6,068,250
105,000 Dayton Hudson Corp...................................... 3,465,000
200,000 Ford Motor Co........................................... 6,250,000
170,000 Heilig-Meyers Co........................................ 2,656,250
90,000 Houghton Mifflin Co..................................... 4,241,250
60,000 Luxottica Group S.p.A. ADR.............................. 4,365,000
102,834 McDonald's Corp......................................... 4,871,761
110,000 +O'Reilly Automotive, Inc............................... 3,795,000
70,000 Reuters Holdings plc ADR................................ 4,838,750
60,000 +Scholastic Corp........................................ 4,320,000
------------
44,871,261
------------
TECHNOLOGY -- 11.15%
59,570 +Cisco Systems, Inc..................................... 3,693,340
37,480 Hewlett-Packard Co. .................................... 1,827,150
130,000 +Informix Corp.......................................... 3,623,750
32,118 Intel Corp.............................................. 3,063,254
20,000 Lucent Technologies, Inc................................ 917,500
50,510 +Microsoft Corp. ....................................... 6,654,692
50,000 Motorola, Inc........................................... 2,581,250
70,000 Texas Instruments, Inc. ................................ 3,858,750
131,220 Tyco International Ltd. ................................ 5,658,863
------------
31,878,549
------------
CONSUMER STAPLES -- 15.26%
160,000 Abbott Laboratories..................................... 7,880,000
203,600 +Alliance Pharmaceutical Corp........................... 3,486,650
220,000 +Cerner Corp............................................ 3,410,000
171,500 +FHP International Corp. ............................... 6,366,938
136,610 +Forest Laboratories, Inc. ............................. 4,935,036
130,000 +Genzyme Corp........................................... 3,266,250
153,724 Johnson & Johnson....................................... 7,878,355
80,900 Pfizer, Inc............................................. 6,401,212
------------
43,624,441
------------
ENERGY -- 8.70%
110,103 Louisiana Land & Exploration Co......................... 5,794,170
66,849 Mobil Corp.............................................. 7,737,772
105,500 +United Meridian Corp................................... 4,800,250
181,680 Unocal Corp............................................. 6,540,480
------------
24,872,672
------------
</TABLE>
<TABLE>
<CAPTION>
VALUE
SHARES (NOTE 1)
---------- ------------
<C> <S> <C>
CAPITAL GOODS -- 10.38%
79,706 General Electric Co. ................................ $ 7,253,246
101,533 Illinois Tool Works, Inc............................. 7,323,068
135,961 Thermo Electron Corp. ............................... 5,506,420
161,991 Westinghouse Electric Corp........................... 3,017,082
200,000 WMX Technologies, Inc. .............................. 6,575,000
------------
29,674,816
------------
UTILITIES -- 6.39%
113,924 AT&T Corp............................................ 5,952,529
160,000 Enron Corp........................................... 6,520,000
120,000 MCI Communications Corp.............................. 3,060,000
80,000 Vodafone Group plc ADR............................... 2,730,000
------------
18,262,529
------------
RAW/INTERMEDIATE MATERIALS -- 1.88%
190,000 Pall Corp............................................ 5,367,500
------------
TOTAL COMMON STOCKS (Cost $204,003,623).............. 269,139,150
------------
<CAPTION>
PRINCIPAL
AMOUNT
----------
<C> <S> <C>
DEMAND NOTES -- 5.52%
$5,816,000 Associates Corp. of North America Master Notes....... 5,816,000
9,951,000 General Electric Co. Promissory Notes................ 9,951,000
------------
TOTAL DEMAND NOTES
(Cost $15,767,000)................................... 15,767,000
</TABLE>
<TABLE>
<S> <C> <C>
------------
TOTAL INVESTMENTS
(Cost $219,770,623*)...................................... 99.68% $284,906,150
OTHER ASSETS AND LIABILITIES (NET)........................ 0.32 917,455
------ ------------
NET ASSETS................................................ 100.00% $285,823,605
====== ============
</TABLE>
- --------
* Aggregate cost for Federal tax and book purposes.
+ Non-income producing security.
ADR -- American Depositary Receipt.
See Notes to Financial Statements
12
<PAGE>
EXCELSIOR FUNDS, INC.
PORTFOLIO OF INVESTMENTS SEPTEMBER 30, 1996 (UNAUDITED)
INCOME AND GROWTH FUND
<TABLE>
<CAPTION>
VALUE
SHARES (NOTE 1)
---------- ------------
<C> <S> <C>
COMMON STOCKS -- 66.68%
CONSUMER CYCLICAL -- 16.66%
3,495 Bayerische Motoren Werke AG.......................... $ 2,000,316
53,650 Clayton Homes, Inc................................... 1,180,300
80,000 Heilig-Meyers Co..................................... 1,250,000
63,000 Herman Miller, Inc................................... 2,551,500
40,000 Luxottica Group S.p.A. ADR........................... 2,910,000
56,000 McDonald's Corp...................................... 2,653,000
63,000 +SDL, Inc............................................ 1,260,000
120,000 ServiceMaster Ltd. Partnership....................... 2,910,000
95,000 Smart & Final, Inc................................... 2,280,000
90,000 Wiley (John) & Sons, Inc.,
Class A.............................................. 2,598,750
------------
21,593,866
------------
CONSUMER STAPLES -- 9.70%
43,000 Gillette Co.......................................... 3,101,375
60,000 Johnson & Johnson.................................... 3,075,000
26,000 Kellogg Co........................................... 1,790,750
65,000 Novo-Nordisk A.S., ADR............................... 2,567,500
3,040 SMH AG (Bearer)...................................... 2,045,571
------------
12,580,196
------------
TECHNOLOGY -- 9.49%
45,000 +AES Corp............................................ 1,766,250
57,000 Adobe Systems, Inc................................... 2,123,250
115,000 +Analog Devices, Inc................................. 3,119,375
115,000 ECI Telecommunications Limited Designs............... 2,400,625
266,000 Interleaf, Inc....................................... 615,125
100,000 +Unitrode Corp....................................... 2,275,000
------------
12,299,625
------------
CAPITAL GOODS -- 7.38%
49,500 Baldor Electric Co................................... 965,250
62,000 Dover Corp........................................... 2,960,500
30,000 Lincoln Electric Co.................................. 900,000
41,000 Raychem Corp......................................... 3,075,000
50,000 Trinity Industries, Inc.............................. 1,668,750
------------
9,569,500
------------
ENERGY -- 6.98%
41,000 Norsk Hydro A.S., ADR................................ 1,927,000
60,000 +SEACOR Holdings, Inc................................ 3,022,500
90,000 +United Meridian Corp................................ 4,095,000
------------
9,044,500
------------
FINANCIAL -- 6.73%
21,750 American International Group, Inc.................... 2,191,313
26,000 Household International, Inc......................... 2,138,500
48,000 Morgan Stanley Group, Inc............................ 2,388,000
69,333 Mutual Risk Management Ltd........................... 2,010,657
------------
8,728,470
------------
</TABLE>
<TABLE>
<CAPTION>
VALUE
SHARES (NOTE 1)
---------- ------------
<C> <S> <C>
RAW/INTERMEDIATE MATERIALS -- 6.29%
41,000 Nucor Corp.......................................... $ 2,080,750
70,000 Pall Corp........................................... 1,977,500
36,000 Pioneer Hi-Bred International, Inc.................. 2,178,000
95,000 Worthington Industries, Inc......................... 1,911,875
------------
8,148,125
------------
UTILITIES -- 2.23%
65,000 +NEXTEL Communications, Inc., Class A............... 1,194,375
72,000 UGI Corp............................................ 1,692,000
------------
2,886,375
------------
TRANSPORTATION -- 1.22%
20,000 +Federal Express Corp............................... 1,585,000
------------
TOTAL COMMON STOCKS (Cost $56,132,543).............. 86,435,657
------------
CONVERTIBLE PREFERRED STOCKS -- 8.32%
FINANCIAL -- 6.22%
325,000 Capstead Mortgage Corp.,
Series B, Preferred
Exchange $1.26...................................... 4,834,375
57,975 Catellus Development Corp., Series A, Preferred
Exchange $3.75...................................... 3,232,106
------------
8,066,481
------------
ENERGY -- 2.10%
80,000 Callon Petro Co., Series A, Preferred Exchange
$2.13............................................... 2,720,000
------------
TOTAL CONVERTIBLE PREFERRED STOCKS
(Cost $9,590,928)................................... 10,786,481
------------
<CAPTION>
PRINCIPAL
AMOUNT
----------
<C> <S> <C>
CORPORATE BONDS -- 4.60%
RAW/INTERMEDIATE MATERIALS -- 1.59%
$2,000,000 Fort Howard Sr. Notes,
9.25%, 03/15/2001 .................................. 2,060,000
------------
ENERGY -- 1.53%
2,000,000 Vintage Petro Sr. Sub-Notes, 9.00%, 12/15/2005 ..... 1,985,000
------------
TRANSPORTATION -- 1.48%
2,000,000 Greyhound Lines, Inc., Debenture,
10.00%, 07/31/2001 1,920,000
------------
TOTAL CORPORATE BONDS (Cost $5,808,487)............. 5,965,000
------------
</TABLE>
See Notes to Financial Statements
13
<PAGE>
EXCELSIOR FUNDS, INC.
PORTFOLIO OF INVESTMENTS SEPTEMBER 30, 1996 (UNAUDITED)
INCOME AND GROWTH FUND -- (CONTINUED)
<TABLE>
<CAPTION>
PRINCIPAL VALUE
AMOUNT (NOTE 1)
---------- ------------
<C> <S> <C>
CONVERTIBLE BONDS -- 15.77%
TECHNOLOGY -- 13.44%
$3,400,000 BBN Corp.,
6.00%, 04/01/2012.................................... $ 2,919,750
4,236,000 Kollmorgen Corp.,
Sub-Debenture,
8.75%, 05/01/2009.................................... 4,257,180
4,959,000 Network Equipment Technologies, Inc.,
Sub-Debenture,
7.25%, 05/15/2014.................................... 4,190,355
3,200,000 Storage Technology Corp.,
8.00%, 05/31/2015.................................... 3,768,000
2,500,000 VLSI Technology,
8.25%, 10/01/2005 ................................... 2,290,625
------------
17,425,910
------------
CONSUMER STAPLES -- 2.33%
3,400,000 Novacare, Inc., Sub-Debenture, 5.50%, 01/15/2000 3,017,500
------------
TOTAL CONVERTIBLE BONDS (Cost $19,395,145)........... 20,443,410
------------
DEMAND NOTES -- 3.88%
1,205,000 Associates Corp. of North America Master Notes....... 1,205,000
3,832,000 General Electric Co. Promissory Notes................ 3,832,000
------------
TOTAL DEMAND NOTES
(Cost $5,037,000).................................... 5,037,000
------------
</TABLE>
<TABLE>
<S> <C> <C>
TOTAL INVESTMENTS
(Cost $95,964,103*)....................................... 99.25% $128,667,548
OTHER ASSETS AND LIABILITIES (NET)........................ 0.75 966,311
------ ------------
NET ASSETS................................................ 100.00% $129,633,859
====== ============
</TABLE>
- --------
* Aggregate cost for Federal tax and book purposes.
+ Non-income producing security.
ADR -- American Depositary Receipt.
See Notes to Financial Statements
14
<PAGE>
EXCELSIOR FUNDS, INC.
PORTFOLIO OF INVESTMENTS SEPTEMBER 30, 1996 (UNAUDITED)
AGING OF AMERICA FUND
<TABLE>
<CAPTION>
VALUE
SHARES (NOTE 1)
---------- -----------
<C> <S> <C>
COMMON STOCKS -- 95.09%
CONSUMER STAPLES -- 34.29%
40,000 +Assisted Living Concepts, Inc........................ $ 760,000
13,000 Campbell Soup Co. .................................... 1,014,000
30,000 Carnival Corp., Class A............................... 930,000
20,000 Columbia/HCA Healthcare Corp.......................... 1,137,500
12,000 Eastman Kodak Co. .................................... 942,000
35,000 First Brands Corp. ................................... 914,375
20,000 +Forest Laboratories, Inc. ........................... 722,500
40,000 +Genzyme Corp. ....................................... 1,005,000
15,000 Gillette Co........................................... 1,081,875
45,000 +Healthsource, Inc. .................................. 663,750
25,000 +Healthsouth Corp..................................... 959,375
18,000 Johnson & Johnson..................................... 922,500
20,000 +Living Centers of America, Inc. ..................... 500,000
37,500 Mattel, Inc. ......................................... 970,312
25,000 +Medaphis Corp. ...................................... 371,875
25,000 PepsiCo, Inc.......................................... 706,250
14,000 Pfizer, Inc. ......................................... 1,107,750
20,500 United Healthcare Corp. .............................. 853,313
15,715 Walt Disney Co. ...................................... 995,938
-----------
16,558,313
-----------
CONSUMER CYCLICAL -- 30.61%
22,000 Black & Decker Corp................................... 913,000
45,000 +Coleman Co., Inc. ................................... 663,750
27,500 Fisher Scientific International....................... 1,134,375
11,000 Gannett Co., Inc. .................................... 774,125
18,000 General Motors Corp................................... 864,000
43,000 +General Nutrition Cos., Inc. ........................ 752,500
50,000 Heartstream, Inc. .................................... 712,500
24,000 Lowe's Cos., Inc. .................................... 981,000
21,000 Marriott International, Inc. ......................... 1,157,625
40,000 Metromail Corp. ...................................... 865,000
8,250 Pittway Corp., Class A................................ 368,156
30,000 +Proffitt's, Inc. .................................... 1,185,000
20,000 +Readicare, Inc. ..................................... 166,250
40,000 +Revco D.S., Inc. .................................... 1,175,000
20,000 Sears, Roebuck & Co. ................................. 895,000
30,000 Stewart Enterprises, Inc., Class A.................... 1,012,500
30,000 Time Warner, Inc. .................................... 1,158,750
-----------
14,778,531
-----------
FINANCIAL -- 19.67%
20,000 Allstate Corp. ....................................... 985,000
19,000 American Express Co................................... 878,750
25,200 Associates First Capital Corp......................... 1,033,200
30,000 Barnett Banks of Florida, Inc......................... 1,012,500
16,000 Dean Witter Discover & Co. ........................... 880,000
40,000 Hospitality Properties Trust.......................... 1,070,000
30,000 Meditrust Corp. ...................................... 1,038,750
15,000 Mellon Bank Corp. .................................... 888,750
23,400 Summit Bancorp (New Jersey)........................... 930,150
12,200 UNUM Corp. ........................................... 782,325
-----------
9,499,425
-----------
</TABLE>
<TABLE>
<CAPTION>
VALUE
SHARES (NOTE 1)
---------- -----------
<C> <S> <C>
UTILITIES -- 3.61%
17,000 AT&T Corp. ........................................... $ 888,250
40,000 +Worldcom, Inc. ...................................... 855,000
-----------
1,743,250
-----------
TECHNOLOGY -- 3.53%
46,000 +Alliance Pharmaceutical Corp. ....................... 787,750
10,000 +Compaq Computer...................................... 641,250
26,000 General Surgical Innovations, Inc. ................... 273,000
-----------
1,702,000
-----------
CAPITAL GOODS -- 3.38%
7,000 Boeing Co............................................. 661,500
24,000 Thermo Electron Corp. ................................ 972,000
-----------
1,633,500
-----------
TOTAL COMMON STOCKS
(Cost $36,937,176).................................... 45,915,019
-----------
<CAPTION>
PRINCIPAL
AMOUNT
----------
<C> <S> <C>
DEMAND NOTES -- 3.37%
$ 559,000 Associates Corp. of North America Master Notes........ 559,000
1,068,000 General Electric Co.
Promissory Notes...................................... 1,068,000
-----------
TOTAL DEMAND NOTES
(Cost $1,627,000)..................................... 1,627,000
-----------
</TABLE>
<TABLE>
<S> <C> <C>
TOTAL INVESTMENTS
(Cost $38,564,176*)........................................ 98.46% $47,542,019
OTHER ASSETS AND LIABILITIES (NET)......................... 1.54 741,820
------ -----------
NET ASSETS................................................. 100.00% $48,283,839
====== ===========
</TABLE>
- --------
* Aggregate cost for Federal tax and book purposes.
+ Non-income producing security.
See Notes to Financial Statements
15
<PAGE>
EXCELSIOR FUNDS, INC.
PORTFOLIO OF INVESTMENTS SEPTEMBER 30, 1996 (UNAUDITED)
BUSINESS AND INDUSTRIAL RESTRUCTURING FUND
<TABLE>
<CAPTION>
VALUE
SHARES (NOTE 1)
---------- -----------
<C> <S> <C>
COMMON STOCKS -- 95.23%
FINANCIAL -- 21.66%
25,000 Associates First Capital Corp......................... $ 1,025,000
101,250 Bank Plus Corp. ...................................... 1,050,469
16,000 Bankers Trust New York Corp. ......................... 1,258,000
15,000 Chase Manhattan Corp. ................................ 1,201,875
39,000 Donaldson, Lufkin & Jenrette, Inc..................... 1,369,875
63,000 Everest Re Holdings, Inc.............................. 1,559,250
62,000 FBL Financial Group, Inc., Class A.................... 1,317,500
50,000 GCR Holdings Ltd. .................................... 1,206,250
66,000 Imperial Thrift & Loan Association.................... 874,500
35,000 Invesco plc-Sponsored ADR............................. 1,295,000
79,000 +Medaphis Corp........................................ 1,175,125
22,000 Mellon Bank Corp...................................... 1,303,500
33,000 Mid Ocean Ltd......................................... 1,406,625
33,000 PNC Bank Corp......................................... 1,101,375
104,539 Prime Retail, Inc. ................................... 1,202,199
15,000 Student Loan Marketing Association.................... 1,119,375
26,500 Travelers Group, Inc.................................. 1,301,812
-----------
20,767,730
-----------
CONSUMER STAPLES -- 17.72%
34,000 +Amerisource Health Corp., Class A.................... 1,513,000
50,000 +Apria Healthcare Group, Inc. ........................ 937,500
30,000 Avon Products, Inc. .................................. 1,488,750
13,000 Bristol-Myers Squibb Co............................... 1,252,875
15,000 CPC International, Inc................................ 1,123,125
42,000 Dial Corp............................................. 577,500
20,000 Eastman Kodak Co. .................................... 1,570,000
37,000 +FHP International Corp............................... 1,373,625
20,000 General Mills, Inc. .................................. 1,207,500
47,000 Integrated Health Services, Inc. ..................... 1,186,750
84,000 Suiza Foods Corp...................................... 1,407,000
50,000 Sunbeam Corp.......................................... 1,156,250
29,000 Sunrise Assisted Living, Inc. ........................ 812,000
21,000 Warner Lambert Co. ................................... 1,386,000
-----------
16,991,875
-----------
TECHNOLOGY -- 14.34%
40,000 Adobe Systems, Inc.................................... 1,490,000
35,000 +Bell & Howell Holdings Co............................ 1,111,250
60,000 +Coltec Industries, Inc............................... 960,000
75,000 +General DataComm Industries, Inc. ................... 843,750
12,000 International Business Machines Corp.................. 1,494,000
50,000 +International Rectifier Corp......................... 693,750
96,000 +Intersolv, Inc. ..................................... 876,000
75,000 Loral Space & Communications.......................... 1,181,250
40,000 Metromail Corp. ...................................... 865,000
67,000 Phoenix Technologies Ltd. ............................ 1,155,750
27,000 +Plantronics, Inc. ................................... 1,015,875
4,000 +Plasma-Therm, Inc. .................................. 15,500
23,000 Texas Instruments, Inc. .............................. 1,267,875
38,600 Watkins Johnson Co.................................... 781,650
-----------
13,751,650
-----------
</TABLE>
<TABLE>
<CAPTION>
VALUE
SHARES (NOTE 1)
---------- -----------
<C> <S> <C>
CONSUMER CYCLICAL -- 14.26%
43,000 +American Standard Cos., Inc. ........................ $ 1,472,750
59,500 Aviation Sales Co..................................... 1,145,375
76,000 Collaborative Clinical Research, Inc.................. 1,026,000
107,000 +Data Documents, Inc. ................................ 1,123,500
40,000 +D.R. Horton, Inc..................................... 390,000
43,000 Ford Motor Co......................................... 1,343,750
16,785 +Fresenius Medical Care AG ADR........................ 390,251
20,000 Nitinol Medical Technologies, Inc..................... 220,000
36,000 Nokia Corp., Class A, ADR............................. 1,593,000
15,000 RockShox, Inc. ....................................... 225,000
28,000 Univision Communications, Inc. ....................... 938,000
65,000 Viad Corp. ........................................... 910,000
70,000 +Woolworth Corp. ..................................... 1,443,750
27,000 XEROX Corp............................................ 1,447,875
-----------
13,669,251
-----------
RAW/INTERMEDIATE MATERIALS -- 7.22%
37,500 Cambrex Corp.......................................... 1,270,312
15,000 Dow Chemical Co....................................... 1,203,750
55,000 +Fort Howard Corp. ................................... 1,333,750
35,000 Rayonier, Inc. ....................................... 1,391,250
14,000 St. Joe Paper Co. .................................... 892,500
16,000 W.R. Grace & Co....................................... 832,000
-----------
6,923,562
-----------
ENERGY -- 6.81%
50,000 Dailey Petroleum Services Corp........................ 437,500
61,000 +Flores & Rucks, Inc. ................................ 2,356,125
13,000 Mobil Corp............................................ 1,504,750
80,000 +Nabors Industries, Inc. ............................. 1,090,000
50,000 YPF S.A. ADR.......................................... 1,143,750
-----------
6,532,125
-----------
CAPITAL GOODS -- 6.54%
20,000 AlliedSignal, Inc. ................................... 1,317,500
15,000 Boeing Co............................................. 1,417,500
80,000 Hvide Marine, Inc., Class A........................... 1,020,000
25,000 McDonnell Douglas Corp. .............................. 1,312,500
10,000 United Technologies Corp.............................. 1,201,250
-----------
6,268,750
-----------
UTILITIES -- 2.84%
98,000 +Mobilemedia Corp., Class A........................... 392,000
70,000 Westinghouse Electric Corp. .......................... 1,303,750
48,000 +Worldcom, Inc........................................ 1,026,000
-----------
2,721,750
-----------
TRANSPORTATION -- 2.62%
60,200 Coach USA, Inc........................................ 1,610,350
110,000 Smithway Motor Express, Class A....................... 907,500
-----------
2,517,850
-----------
</TABLE>
See Notes to Financial Statements
16
<PAGE>
EXCELSIOR FUNDS, INC.
PORTFOLIO OF INVESTMENTS SEPTEMBER 30, 1996 (UNAUDITED)
BUSINESS AND INDUSTRIAL RESTRUCTURING FUND--(CONTINUED)
<TABLE>
<CAPTION>
VALUE
SHARES (NOTE 1)
---------- -----------
<C> <S> <C>
HOLDING COMPANY DIVERSIFIED -- 1.22%
48,000 Internatio-Muller N.V................................. $ 1,166,696
-----------
TOTAL COMMON STOCKS
(Cost $71,446,149).................................... 91,311,239
-----------
CONVERTIBLE PREFERRED STOCKS -- 3.23%
UTILITIES -- 1.26%
30,000 Nortel Invesora S.A................................... 1,211,250
-----------
FINANCIAL -- 1.17%
23,000 Kmart Financing, Inc.................................. 1,124,125
-----------
CONSUMER STAPLES -- 0.80%
143,000 RJR Nabisco Holdings, Series C........................ 768,625
-----------
TOTAL CONVERTIBLE PREFERRED STOCKS
(Cost $3,315,291)..................................... 3,104,000
-----------
<CAPTION>
PRINCIPAL
AMOUNT
----------
<C> <S> <C>
DEMAND NOTES -- 2.76%
$ 86,000 Associates Corp. of North America Master Notes........ 86,000
2,563,000 General Electric Co. Promissory Notes................. 2,563,000
-----------
TOTAL DEMAND NOTES
(Cost $2,649,000)..................................... 2,649,000
-----------
</TABLE>
<TABLE>
<S> <C> <C>
TOTAL INVESTMENTS
(Cost $77,410,440*)........................................ 101.22% $97,064,239
OTHER ASSETS AND LIABILITIES (NET)......................... (1.22) (1,173,706)
------ -----------
NET ASSETS................................................. 100.00% $95,890,533
====== ===========
</TABLE>
- --------
* Aggregate cost for Federal tax and book purposes.
+ Non-income producing security.
ADR -- American Depositary Receipt.
See Notes to Financial Statements
17
<PAGE>
EXCELSIOR FUNDS, INC.
PORTFOLIO OF INVESTMENTS SEPTEMBER 30, 1996 (UNAUDITED)
COMMUNICATION AND ENTERTAINMENT FUND
<TABLE>
<CAPTION>
VALUE
SHARES (NOTE 1)
---------- -----------
<C> <S> <C>
COMMON STOCKS -- 93.50%
CONSUMER CYCLICAL -- 45.52%
60,000 +Activision, Inc...................................... $ 847,500
30,000 +Bay Networks, Inc. .................................. 817,500
20,000 +Bell & Howell Holdings Co............................ 635,000
30,000 Boston Communications Group........................... 483,750
20,000 +Cisco Systems, Inc................................... 1,240,000
50,000 Comcast Corp., Class A Special........................ 768,750
52,500 +Franklin Electronic Publishers, Inc.................. 669,375
42,000 Gaylord Entertainment................................. 950,250
25,000 +GT Interactive Software Corp......................... 568,750
20,000 +ICG Communications, Inc. ............................ 420,000
10,000 International Business Machines Corp.................. 1,245,000
20,000 Meredith Corp......................................... 987,500
50,000 News Limited ADR...................................... 1,043,750
48,500 +Paging Network, Inc.................................. 957,875
17,700 +Scholastic Corp. .................................... 1,274,400
25,000 +Symbol Technologies, Inc............................. 1,150,000
50,000 +Tele-Communications, Inc.,
Class A............................................... 743,750
40,000 +Tele-Communications Liberty Media Group, Class A..... 1,145,000
57,400 Teleport Communications Group, Inc., Class A.......... 1,348,900
20,000 Times Mirror Co., Class A............................. 890,000
11,200 Univision Communications, Inc......................... 375,200
10,000 U.S. Robotics Corp., Inc. ............................ 646,250
23,884 +Viacom, Inc., Class B................................ 847,882
18,550 Walt Disney Co........................................ 1,175,606
3,000 Washington Post Company,
Class B............................................... 1,050,000
37,800 Wiley (John) & Sons, Inc.,
Class A............................................... 1,091,475
-----------
23,373,463
-----------
TECHNOLOGY -- 28.02%
25,000 +America On-Line, Inc................................. 890,625
45,000 +Analog Devices, Inc. ................................ 1,220,625
20,000 Computer Learning Centers, Inc. ...................... 520,000
55,900 ECI Telecommunications Limited Designs................ 1,166,913
50,400 +General DataComm Industries, Inc..................... 567,000
25,000 GTE Corp. ............................................ 962,500
50,000 +Hyperion Software Corp. ............................. 756,250
55,600 +Informix Corp. ...................................... 1,549,850
100,000 Interleaf, Inc. ...................................... 231,250
29,500 Nokia Corp., Class A ADR.............................. 1,305,375
88,900 Phoenix Technologies Ltd. ............................ 1,533,525
30,000 +Premenos Technology Corp............................. 607,500
30,000 +SDL, Inc............................................. 600,000
45,000 System Software Associates, Inc. ..................... 585,000
15,000 +3Com Corp............................................ 900,000
43,500 +Unitrode Corp........................................ 989,625
-----------
14,386,038
-----------
</TABLE>
<TABLE>
<CAPTION>
VALUE
SHARES (NOTE 1)
---------- -----------
<C> <S> <C>
UTILITIES -- 13.92%
24,000 Ameritech Corp........................................ $ 1,263,000
20,800 AT&T Corp............................................. 1,086,800
30,000 Intermedia Communications, Inc........................ 877,500
46,600 MCI Communications Corp. ............................. 1,188,300
42,800 +MFS Communications Co., Inc. ........................ 1,861,800
20,000 NYNEX Corp. .......................................... 870,000
-----------
7,147,400
-----------
CONSUMER STAPLES -- 6.04%
35,000 +CUC International, Inc............................... 1,395,625
20,000 +Learning Tree International, Inc..................... 735,000
23,800 +Sylvan Learning Systems, Inc......................... 969,850
-----------
3,100,475
-----------
TOTAL COMMON STOCKS
(Cost $40,493,009).................................... 48,007,376
-----------
<CAPTION>
PRINCIPAL
AMOUNT
----------
<C> <S> <C>
CONVERTIBLE BONDS -- 2.36%
TECHNOLOGY -- 2.36%
$1,031,000 Storage Technology Corp.,
8.00%, 05/31/2015
(Cost $942,132)....................................... 1,214,002
-----------
DEMAND NOTES -- 4.12%
835,000 Associates Corp. of North America Master Notes........ 835,000
1,278,000 General Electric Co. Promissory Notes................. 1,278,000
-----------
TOTAL DEMAND NOTES
(Cost $2,113,000)..................................... 2,113,000
-----------
</TABLE>
<TABLE>
<S> <C> <C>
TOTAL INVESTMENTS
(Cost $43,548,141*)........................................ 99.98% $51,334,378
OTHER ASSETS AND LIABILITIES (NET)......................... 0.02 12,091
------ -----------
NET ASSETS................................................. 100.00% $51,346,469
====== ===========
</TABLE>
- --------
* Aggregate cost for Federal tax and book purposes.
+ Non-income producing security.
ADR -- American Depositary Receipt.
See Notes to Financial Statements
18
<PAGE>
EXCELSIOR FUNDS, INC.
PORTFOLIO OF INVESTMENTS SEPTEMBER 30, 1996 (UNAUDITED)
EARLY LIFE CYCLE FUND
<TABLE>
<CAPTION>
VALUE
SHARES (NOTE 1)
---------- -----------
<C> <S> <C>
COMMON STOCKS -- 95.51%
TECHNOLOGY -- 30.92%
80,100 +Asyst Technologies, Inc. ............................ $ 1,541,925
77,500 +Cerner Corp.......................................... 1,201,250
131,800 +Hyperion Software Corp. ............................. 1,993,475
83,000 +Informix Corp. ...................................... 2,313,625
295,200 Interleaf, Inc. ...................................... 682,650
154,900 +Intersolv, Inc. ..................................... 1,413,462
81,900 Metricom, Inc. ....................................... 1,443,488
108,000 +Perceptron, Inc. .................................... 2,673,000
134,500 Phoenix Technologies Ltd. ............................ 2,320,125
125,200 +Premenos Technology Corp............................. 2,535,300
94,500 +SDL, Inc. ........................................... 1,890,000
113,500 System Software Associates, Inc....................... 1,475,500
65,000 Teleport Communications Group, Inc., Class A.......... 1,527,500
78,000 +Thermedics, Inc...................................... 2,057,250
45,000 Thiokol Corp. ........................................ 2,109,375
-----------
27,177,925
-----------
CONSUMER CYCLICAL -- 17.56%
80,000 +Activision, Inc...................................... 1,130,000
86,700 +Allen Group, Inc..................................... 1,603,950
120,300 +AMRE, Inc. .......................................... 1,669,163
198,500 +Banyan Systems, Inc. ................................ 1,017,312
44,400 Check Point Software Technologies Ltd. ............... 1,498,500
101,100 Endovascular Technologies, Inc. ...................... 1,187,925
30,000 Exide Corp. .......................................... 776,250
59,300 +Franklin Electronic Publishers, Inc.................. 756,075
76,000 Recovery Engineering, Inc. ........................... 940,500
109,100 +Renters Choice, Inc. ................................ 1,991,075
105,000 Stimsonite Corp....................................... 643,125
59,000 +Vivus, Inc........................................... 2,227,250
-----------
15,441,125
-----------
CONSUMER STAPLES -- 17.84%
169,000 +Alliance Pharmaceutical Corp. ....................... 2,894,125
70,700 Allied Healthcare Products, Inc....................... 477,225
90,000 +General Nutrition Cos., Inc. ........................ 1,575,000
114,000 GoodMark Foods........................................ 1,852,500
118,686 +Ligand Pharmaceuticals, Class B...................... 1,617,097
227,400 Pepsi-Cola Puerto Rico Bottling Co., Class B.......... 1,080,150
75,500 +Pharmacopeia, Inc. .................................. 1,689,312
67,400 +Physician Reliance Network, Inc. .................... 1,011,000
57,000 +Sunrise Medical, Inc................................. 904,875
45,000 TeleSpectrum Worldwide, Inc. ......................... 866,250
78,800 Veterinary Centers of America, Inc.................... 1,713,900
-----------
15,681,434
-----------
</TABLE>
<TABLE>
<CAPTION>
VALUE
SHARES (NOTE 1)
---------- -----------
<C> <S> <C>
CAPITAL GOODS -- 12.13%
110,700 BE Aerospace, Inc..................................... $ 2,269,350
101,500 Juno Lighting, Inc. .................................. 1,662,063
54,000 Lindsay Manufacturing Co. ............................ 2,193,750
136,000 Morrison Knudsen Corp. ............................... 1,326,000
28,000 Teleflex, Inc......................................... 1,389,500
75,000 TriMas Corp........................................... 1,818,750
-----------
10,659,413
-----------
FINANCIAL -- 11.67%
176,000 +Americredit Corp. ................................... 3,234,000
98,500 +Capsure Holdings Corp................................ 1,797,625
36,300 First American Corp. (Tennessee)...................... 1,737,862
61,000 Homestate Holdings, Inc. ............................. 442,250
78,000 Integon Corp. ........................................ 1,443,000
139,100 +National Auto Credit, Inc. .......................... 1,599,650
-----------
10,254,387
-----------
TRANSPORTATION -- 2.35%
73,000 Air Express International Corp. ...................... 2,062,250
-----------
RAW/INTERMEDIATE MATERIALS -- 1.76%
110,700 NN Ball & Roller, Inc. ............................... 1,549,800
-----------
ENERGY -- 1.28%
96,000 Snyder Oil Corp. ..................................... 1,128,000
-----------
TOTAL COMMON STOCKS
(Cost $77,395,471).................................... 83,954,334
-----------
<CAPTION>
PRINCIPAL
AMOUNT
----------
<C> <S> <C>
DEMAND NOTES -- 4.38%
$1,694,000 Associates Corp. of North America Master Notes........ 1,694,000
2,160,000 General Electric Co. Promissory Notes................. 2,160,000
-----------
TOTAL DEMAND NOTES
(Cost $3,854,000)..................................... 3,854,000
-----------
</TABLE>
<TABLE>
<S> <C> <C>
TOTAL INVESTMENTS
(Cost $81,249,471*)........................................ 99.89% $87,808,334
OTHER ASSETS AND LIABILITIES
(NET)...................................................... 0.11 96,873
------ -----------
NET ASSETS................................................. 100.00% $87,905,207
====== ===========
</TABLE>
- --------
* Aggregate cost for Federal tax and book purposes.
+ Non-income producing security.
See Notes to Financial Statements
19
<PAGE>
EXCELSIOR FUNDS, INC.
PORTFOLIO OF INVESTMENTS SEPTEMBER 30, 1996 (UNAUDITED)
ENVIRONMENTALLY-RELATED PRODUCTS AND SERVICES FUND
<TABLE>
<CAPTION>
VALUE
SHARES (NOTE 1)
-------- ----------
<C> <S> <C>
COMMON STOCKS -- 87.32%
CAPITAL GOODS -- 35.31%
16,000 Calgon Carbon Corp. ..................................... $ 166,000
16,000 +Continental Waste Industries, Inc. ..................... 358,000
3,000 Harsco Corp. ............................................ 189,000
18,500 +Philip Environmental, Inc. ............................. 175,750
6,000 +Republic Industries, Inc. .............................. 174,000
4,000 Tecumseh Products Co., Class A........................... 217,000
8,500 +Thermo Fibertek, Inc. .................................. 111,563
10,500 +U.S. Filter Corp. ...................................... 358,312
13,600 +U.S.A. Waste Services, Inc. ............................ 428,400
5,000 WMX Technologies, Inc. .................................. 164,375
----------
2,342,400
----------
TECHNOLOGY -- 17.35%
15,000 Advanced Lighting Technologies, Inc. .................... 296,250
3,300 Honeywell Corp. ......................................... 208,312
2,000 Intel Corp. ............................................. 190,750
8,900 Memtec Ltd. ADR.......................................... 249,200
5,625 +Thermo Instrument Systems, Inc. ........................ 206,016
----------
1,150,528
----------
RAW/INTERMEDIATE MATERIALS -- 10.86%
5,000 Minerals Technologies, Inc. ............................. 186,875
5,000 Monsanto Co.............................................. 182,500
6,000 Pall Corp. .............................................. 169,500
3,000 Pioneer Hi-Bred International, Inc. ..................... 181,500
----------
720,375
----------
ENERGY -- 9.76%
11,000 GTS Duratek, Inc. ....................................... 180,125
6,500 +Newpark Resources, Inc. ................................ 236,438
5,700 Thermo Electron Corp. ................................... 230,850
----------
647,413
----------
CONSUMER STAPLES -- 5.42%
3,000 Air Products & Chemicals, Inc. .......................... 174,750
7,000 Equifax, Inc. ........................................... 184,625
----------
359,375
----------
</TABLE>
<TABLE>
<CAPTION>
VALUE
SHARES (NOTE 1)
--------- ----------
<C> <S> <C>
UTILITIES -- 4.31%
6,000 +California Energy Co., Inc. ........................... $ 191,250
2,500 +Culligan Water Technologies, Inc. ..................... 94,688
----------
285,938
----------
CONSUMER CYCLICAL -- 4.31%
1,500 General Electric Co. ................................... 136,500
6,000 Olsten Corp............................................. 149,250
----------
285,750
----------
TOTAL COMMON STOCKS
(Cost $4,184,399)....................................... 5,791,779
----------
<CAPTION>
PRINCIPAL
AMOUNT
---------
<C> <S> <C>
U.S. GOVERNMENT OBLIGATIONS -- 4.51%
$300,000 U.S. Treasury Bill
0.00%, 10/17/1996
(Cost $299,349)......................................... 299,349
----------
DEMAND NOTES -- 4.99%
261,000 Associates Corp. of North America Master Notes.......... 261,000
70,000 General Electric Co. Promissory Notes................... 70,000
----------
TOTAL DEMAND NOTES
(Cost $331,000)......................................... 331,000
----------
</TABLE>
<TABLE>
<S> <C> <C>
TOTAL INVESTMENTS
(Cost $4,814,748*).......................................... 96.82% $6,422,128
OTHER ASSETS AND LIABILITIES
(NET)....................................................... 3.18 210,838
------ ----------
NET ASSETS.................................................. 100.00% $6,632,966
====== ==========
</TABLE>
- --------
* Aggregate cost for Federal tax and book purposes.
+ Non-income producing security.
ADR -- American Depositary Receipt.
See Notes to Financial Statements
20
<PAGE>
EXCELSIOR FUNDS, INC.
PORTFOLIO OF INVESTMENTS SEPTEMBER 30, 1996 (UNAUDITED)
GLOBAL COMPETITORS FUND
<TABLE>
<CAPTION>
VALUE
SHARES (NOTE 1)
---------- -----------
<C> <S> <C>
COMMON STOCKS -- 97.52%
CONSUMER STAPLES -- 26.98%
33,000 Astra AB, Class B..................................... $ 1,357,522
30,000 CPC International, Inc................................ 2,246,250
40,000 Duracell International, Inc........................... 2,565,000
13,200 Estee Lauder Companies, Class A....................... 592,350
40,000 Gillette Co........................................... 2,885,000
40,000 Johnson & Johnson..................................... 2,050,000
3,300 L'Oreal............................................... 1,118,644
35,000 Libbey, Inc. ......................................... 923,125
31,000 Pfizer, Inc. ......................................... 2,452,875
32,000 Procter & Gamble Co. ................................. 3,120,000
35,000 Schering-Plough Corp. ................................ 2,152,500
25,000 Walt Disney Co. ...................................... 1,584,375
-----------
23,047,641
-----------
TECHNOLOGY -- 9.23%
35,000 Adobe Systems, Inc.................................... 1,303,750
80,000 +Hyperion Software Corp. ............................. 1,210,000
35,000 +Informix Corp. ...................................... 975,625
10,000 Intel Corp. .......................................... 953,750
5,000 International Business Machines Corp.................. 622,500
60,000 +Intersolv, Inc. ..................................... 547,500
15,000 Motorola, Inc......................................... 774,375
14,000 Texas Instruments, Inc. .............................. 771,750
31,500 Vishay Intertechnology, Inc. ......................... 728,438
-----------
7,887,688
-----------
CONSUMER CYCLICAL -- 17.28%
38,000 Electronic Data Systems Corp. ........................ 2,332,250
37,000 Goodyear Tire and Rubber Co. ......................... 1,706,625
48,000 Hilton Hotels Corp.................................... 1,362,000
40,000 Luxottica Group S.p.A. ADR............................ 2,910,000
36,000 McDonald's Corp. ..................................... 1,705,500
15,000 +Nu-Kote Holdings, Inc., Class A...................... 155,625
90,000 +Thermo Fibertek, Inc................................. 1,181,250
65,000 +ThermoLase Corp...................................... 1,616,875
27,500 ThermoQuest Corp. .................................... 367,812
40,000 +Viacom, Inc., Class B................................ 1,420,000
-----------
14,757,937
-----------
FINANCIAL -- 14.92%
25,000 American International Group, Inc. ................... 2,518,750
53,000 Associates First Capital Corp. ....................... 2,173,000
28,000 Citicorp.............................................. 2,537,500
30,000 Donaldson, Lufkin & Jenrette, Inc. ................... 1,053,750
15,000 General Re Corp....................................... 2,126,250
47,000 Morgan Stanley Group, Inc. ........................... 2,338,250
-----------
12,747,500
-----------
</TABLE>
<TABLE>
<CAPTION>
VALUE
SHARES (NOTE 1)
---------- -----------
<C> <S> <C>
CAPITAL GOODS -- 10.26%
28,000 General Electric Co. ................................ $ 2,548,000
30,000 Illinois Tool Works, Inc. ........................... 2,163,750
55,000 Thermo Electron Corp. ............................... 2,227,500
65,000 Thermo Fibergen, Inc. ............................... 820,625
50,000 +ThermoSpectra Corp. ................................ 700,000
22,500 +Thermo Voltek Corp. ................................ 309,375
-----------
8,769,250
-----------
ENERGY -- 8.26%
10,000 Anadarko Petroleum Corp. ............................ 558,750
25,000 Chevron Corp. ....................................... 1,565,625
21,000 Mobil Corp........................................... 2,430,750
16,000 Royal Dutch Petroleum Co............................. 2,498,000
-----------
7,053,125
-----------
UTILITIES -- 6.20%
20,000 +AirTouch Communications, Inc. ...................... 552,500
75,000 +LCI International, Inc. ............................ 2,362,500
40,000 MCI Communications Corp. ............................ 1,020,000
40,000 Vodafone Group plc ADR............................... 1,365,000
-----------
5,300,000
-----------
RAW/INTERMEDIATE MATERIALS -- 3.96%
40,000 Crown Cork & Seal Co., Inc........................... 1,845,000
27,000 Sigma-Aldrich Corp. ................................. 1,539,000
-----------
3,384,000
-----------
TRANSPORTATION -- 0.43%
5,000 Union Pacific Corp................................... 366,250
-----------
TOTAL COMMON STOCKS
(Cost $67,994,118)................................... 83,313,391
-----------
<CAPTION>
PRINCIPAL
AMOUNT
----------
<C> <S> <C>
CONVERTIBLE BONDS -- 0.27%
CONSUMER CYCLICAL -- 0.27%
$ 214,000 General Instruments Corp., Jr. Subordinated, 5.00%,
06/15/2000 (Cost $272,130)........................... 232,993
-----------
DEMAND NOTES -- 1.97%
677,000 Associates Corp. of North America Master Notes....... 677,000
1,004,000 General Electric Co. Promissory Notes................ 1,004,000
-----------
TOTAL DEMAND NOTES
(Cost $1,681,000).................................... 1,681,000
-----------
</TABLE>
<TABLE>
<S> <C> <C>
TOTAL INVESTMENTS
(Cost $69,947,248*)........................................ 99.76% $85,227,384
OTHER ASSETS AND LIABILITIES
(NET)...................................................... 0.24 206,814
------ -----------
NET ASSETS................................................. 100.00% $85,434,198
====== ===========
</TABLE>
- --------
* Aggregate cost for Federal tax and book purposes.
+ Non-income producing security.
ADR -- American Depositary Receipt.
<TABLE>
<S> <C> <C>
---
</TABLE>
See Notes to Financial Statements
21
<PAGE>
EXCELSIOR FUNDS, INC.
PORTFOLIO OF INVESTMENTS SEPTEMBER 30, 1996 (UNAUDITED)
LONG-TERM SUPPLY OF ENERGY FUND
<TABLE>
<CAPTION>
VALUE
SHARES (NOTE 1)
---------- -----------
<C> <S> <C>
COMMON STOCKS -- 92.06%
ENERGY -- 86.18%
13,500 Anadarko Petroleum Corp. ............................. $ 754,313
17,000 +BJ Services Co. ..................................... 616,250
14,650 British Petroleum Co. plc ADR......................... 1,831,250
9,000 Chevron Corp. ........................................ 563,625
34,000 +Crown Central Petroleum, Class B..................... 459,000
9,500 +Diamond Offshore Drilling, Inc. ..................... 522,500
11,000 El Paso Natural Gas Co. .............................. 484,000
17,000 Enron Corp. .......................................... 692,750
15,000 +ENSCO International, Inc. ........................... 487,500
21,000 Exxon Corp. .......................................... 1,748,250
20,000 +Falcon Drilling Company, Inc. ....................... 515,000
22,000 +Flores & Rucks, Inc. ................................ 849,750
32,000 Houston Exploration Co. .............................. 544,000
25,000 +HS Resources, Inc. .................................. 331,250
23,000 KN Energy, Inc. ...................................... 810,750
15,000 Louisiana Land & Exploration Co. ..................... 789,375
25,000 +McFarland Energy, Inc. .............................. 250,000
15,000 Mobil Corp............................................ 1,736,250
20,000 +Nabors Industries, Inc. ............................. 272,500
31,000 PanEnergy Corp. ...................................... 1,073,375
9,000 Royal Dutch Petroleum Co. ............................ 1,405,125
20,000 Rutherford-Moran Oil Corp............................. 600,000
10,000 Schlumberger Ltd...................................... 845,000
13,000 +SEACOR Holdings, Inc. ............................... 654,875
10,000 Sonat, Inc. .......................................... 442,500
23,700 +Tejas Gas Corp. ..................................... 862,087
8,000 Texaco, Inc. ......................................... 736,000
10,000 Tosco Corp. .......................................... 548,750
18,000 +United Meridian Corp. ............................... 819,000
25,000 USX-Marathon Group, Inc. ............................. 540,625
16,000 Vastar Resources, Inc. ............................... 516,000
15,000 +Weatherford Enterra, Inc. ........................... 410,625
15,000 +Western Atlas, Inc................................... 933,750
-----------
24,646,025
-----------
</TABLE>
<TABLE>
<CAPTION>
VALUE
SHARES (NOTE 1)
---------- -----------
<C> <S> <C>
UTILITIES -- 3.43%
25,000 +AES Corp. ........................................... $ 981,250
-----------
TECHNOLOGY -- 2.45%
20,000 Energy Research Corp.................................. 255,000
15,000 +Input/Output, Inc. .................................. 446,250
-----------
701,250
-----------
TOTAL COMMON STOCKS
(Cost $21,548,985).................................... 26,328,525
-----------
<CAPTION>
PRINCIPAL
AMOUNT
----------
<C> <S> <C>
DEMAND NOTES -- 7.66%
$1,131,000 Associates Corp. of North America Master Notes........ 1,131,000
1,059,000 General Electric Co. Promissory Notes................. 1,059,000
-----------
TOTAL DEMAND NOTES
(Cost $2,190,000)..................................... 2,190,000
-----------
</TABLE>
<TABLE>
<S> <C> <C>
TOTAL INVESTMENTS
(Cost $23,738,985*)........................................ 99.72% $28,518,525
OTHER ASSETS AND LIABILITIES
(NET)...................................................... 0.28 81,370
------ -----------
NET ASSETS................................................. 100.00% $28,599,895
====== ===========
</TABLE>
- --------
* Aggregate cost for Federal tax and book purposes.
+ Non-income producing security.
ADR -- American Depositary Receipt
See Notes to Financial Statements
22
<PAGE>
EXCELSIOR FUNDS, INC.
PORTFOLIO OF INVESTMENTS SEPTEMBER 30, 1996 (UNAUDITED)
PRODUCTIVITY ENHANCERS FUND
<TABLE>
<CAPTION>
VALUE
SHARES (NOTE 1)
-------- -----------
<C> <S> <C>
COMMON STOCKS -- 99.84%
TECHNOLOGY -- 37.77%
18,000 +Applied Material, Inc. ................................ $ 497,250
15,000 +Cisco Systems, Inc. ................................... 930,000
40,000 +Cognex Corp............................................ 650,000
7,000 +Compaq Computer Corp. ................................. 448,875
15,000 Computer Associates International, Inc. ................ 896,250
12,000 Hewlett-Packard Co. .................................... 585,000
20,000 +Informix Corp. ........................................ 557,500
10,000 Intel Corp.............................................. 953,750
18,000 +Littlefuse, Inc. ...................................... 697,500
10,000 +LSI Logic Corp. ....................................... 232,500
5,000 +Microsoft Corp. ....................................... 658,750
10,000 Motorola, Inc. ......................................... 516,250
18,000 +Oracle System Corp. ................................... 765,000
25,000 +Perceptron, Inc........................................ 618,750
25,000 +Teradyne, Inc.......................................... 415,625
13,000 Texas Instruments, Inc. ................................ 716,625
-----------
10,139,625
-----------
CONSUMER CYCLICAL -- 25.55%
11,000 +Adaptec, Inc........................................... 658,625
10,000 +Analog Devices, Inc. .................................. 271,250
17,000 +AutoZone, Inc.......................................... 493,000
15,000 Electronic Data Systems Corp. .......................... 920,625
10,000 General Electric Co. ................................... 910,000
8,000 Kaydon Corp............................................. 344,000
20,000 +Lear Corp.............................................. 660,000
25,000 +O'Reilly Automotive, Inc. ............................. 862,500
15,000 Pep Boys-Manny, Moe & Jack.............................. 534,375
20,000 Wal-Mart Stores, Inc. .................................. 527,500
20,000 +Xilinx, Inc. .......................................... 677,500
-----------
6,859,375
-----------
CAPITAL GOODS -- 24.64%
10,000 AlliedSignal, Inc. ..................................... 658,750
5,000 Boeing Co............................................... 472,500
20,000 Dover Corp.............................................. 955,000
9,000 Emerson Electric, Co.................................... 811,125
25,000 IDEX Corp............................................... 831,250
12,000 Illinois Tool Works, Inc. .............................. 865,500
10,000 Rockwell International Corp. ........................... 563,750
20,000 Thermo Electron Corp.................................... 810,000
15,000 +Wolverine Tube, Inc. .................................. 645,000
-----------
6,612,875
-----------
</TABLE>
<TABLE>
<CAPTION>
VALUE
SHARES (NOTE 1)
--------- -----------
<C> <S> <C>
RAW/INTERMEDIATE MATERIALS -- 6.82%
20,000 AK Steel Holding Corp.................................. $ 820,000
10,000 Nucor Corp. ........................................... 507,500
25,000 Worthington Industries, Inc. .......................... 503,125
-----------
1,830,625
-----------
FINANCIAL -- 3.38%
10,000 Citicorp............................................... 906,250
-----------
CONSUMER STAPLES -- 1.68%
15,000 Newell Co.............................................. 450,000
-----------
TOTAL COMMON STOCKS
(Cost $24,429,871)..................................... 26,798,750
-----------
<CAPTION>
PRINCIPAL
AMOUNT
---------
<C> <S> <C>
DEMAND NOTES -- 0.55%
$ 20,000 Associates Corp. of North America Master Notes......... 20,000
129,000 General Electric Co. Promissory Notes.................. 129,000
-----------
TOTAL DEMAND NOTES
(Cost $149,000)........................................ 149,000
-----------
</TABLE>
<TABLE>
<S> <C> <C>
TOTAL INVESTMENTS
(Cost $24,578,871*)........................................ 100.39% $26,947,750
OTHER ASSETS AND LIABILITIES
(NET)...................................................... (0.39) (104,988)
------ -----------
NET ASSETS................................................. 100.00% $26,842,762
====== ===========
</TABLE>
- --------
* Aggregate cost for Federal tax and book purposes.
+ Non-income producing security.
See Notes to Financial Statements
23
<PAGE>
EXCELSIOR FUNDS, INC.
NOTES TO FINANCIAL STATEMENTS (UNAUDITED)
1. SIGNIFICANT ACCOUNTING POLICIES
Excelsior Funds, Inc. ("Excelsior Fund") was incorporated under the laws of
the State of Maryland on August 2, 1984 and is registered under the Investment
Company Act of 1940, as amended, as an open-end management investment company.
Excelsior Fund currently offers shares in twenty managed investment
portfolios, each having its own investment objectives and policies. The
Excelsior Fund offers two classes of shares in each of the Equity, Aging of
America, Communication and Entertainment, Business and Industrial
Restructuring, Global Competitors and Early Life Cycle Funds--Shares and Trust
Shares. Trust Shares bear the additional expense of distribution fees. As of
September 30, 1996, only the Business and Industrial Restructuring and Early
Life Cycle Funds had Trust Shares outstanding.
The following is a summary of significant accounting policies for Equity
Fund, Income and Growth Fund, Aging of America Fund, Business and Industrial
Restructuring Fund, Communication and Entertainment Fund, Early Life Cycle
Fund, Environmentally-Related Products and Services Fund, Global Competitors
Fund, Long-Term Supply of Energy Fund and Productivity Enhancers Fund (the
"Portfolios"). Such policies are in conformity with generally accepted
accounting principles and are consistently followed by Excelsior Fund in the
preparation of the financial statements. Generally accepted accounting
principles require management to make estimates and assumptions that affect
the reported amounts and disclosures in the financial statements. Actual
results could differ from these estimates. The financial statements for the
remaining portfolios of Excelsior Fund and Excelsior Tax-Exempt Fund, Inc.
("Excelsior Tax-Exempt Fund") are presented separately.
(A) PORTFOLIO VALUATION:
Investments in securities that are traded on a recognized stock exchange
are valued at the last sale price on the exchange on which such securities
are primarily traded or at the last sale price on the national securities
market. Securities traded over-the-counter are valued each business day on
the basis of the closing over-the-counter bid prices. Securities for which
there were no transactions are valued at the average of the most recent bid
prices (as calculated by an independent pricing service (the "Service")
based upon its evaluation of the market for such securities) when, in the
judgement of the Service, quoted bid prices for securities are readily
available and are representative of the bid side of the market. Portfolio
securities that are primarily traded on foreign securities exchanges are
generally valued at the preceding closing values of such securities on
their respective exchanges, except that when an occurrence subsequent to
the time a value was so established is likely to have changed such value,
then a fair value of those securities will be determined by consideration
of other factors under the direction of the Board of Directors. A security
which is traded on more than one exchange is valued at the quotation on the
exchange determined to be the primary market on which the security is
traded. Securities for which market quotations are not readily available
are valued at fair value, pursuant to guidelines adopted by Excelsior
Fund's Board of Directors. Short-term debt instruments with remaining
maturities of 60 days or less are valued at amortized cost, which
approximates market value.
24
<PAGE>
All other foreign securities are valued at the last current bid quotation
if market quotations are available, or at fair value as determined in
accordance with policies established by the Board of Directors. Investment
valuations, other assets, and liabilities initially expressed in foreign
currencies are converted each business day into U.S. dollars based upon
current exchange rates. Purchases and sales of foreign investments and
income and expenses are converted into U.S. dollars based upon currency
exchange rates prevailing on the respective dates of such transactions.
Gains and losses attributable to foreign currency exchange rates are
recorded for financial statement purposes as net realized gains and losses
on investments. That portion of both realized and unrealized gains and
losses on investments that results from fluctuations in foreign currency
exchange rates is not separately disclosed.
Forward foreign currency exchange contracts: The Portfolios'
participation in forward currency exchange contracts will be limited to
hedging involving either specific transactions or portfolio positions.
Transaction hedging involves the purchase or sale of foreign currency with
respect to specific receivables or payables of a Portfolio generally
arising in connection with the purchase or sale of its portfolio
securities. Risk may arise upon entering into these contracts from the
potential inability of counterparties to meet the terms of their contracts
and is generally limited to the amount of unrealized gain on the contracts,
if any, at the date of default. Risk may also arise from unanticipated
movements in the value of a foreign currency relative to the U.S. dollar.
Contracts are marked-to-market daily and the change in market value is
recorded as unrealized appreciation or depreciation. Realized gains or
losses arising from such transactions are included in net realized gains or
losses from foreign currency transactions.
(B) SECURITY TRANSACTIONS AND INVESTMENT INCOME:
Security transactions are recorded on a trade date basis. Realized gains
and losses on investments sold are recorded on the basis of identified
cost. Interest income, including where applicable, amortization of discount
on investments, is recorded on the accrual basis. Dividend income is
recorded on the ex-dividend date, except for certain dividends from foreign
securities, which are recorded as soon as the Portfolios are informed of
the dividend.
(C) REPURCHASE AGREEMENTS:
Excelsior Fund may purchase portfolio securities from financial
institutions deemed to be creditworthy by the investment adviser subject to
the seller's agreement to repurchase and Excelsior Fund's agreement to
resell such securities at mutually agreed upon prices. Securities purchased
subject to such repurchase agreements are deposited with Excelsior Fund's
custodian or sub-custodian or are maintained in the Federal
Reserve/Treasury book-entry system and must have, at all times, an
aggregate market value greater than 102% of the repurchase price (including
accrued interest).
If the value of the underlying security, including accrued interest,
falls below the value of 102% of the repurchase price plus accrued
interest, Excelsior Fund will require the seller to deposit additional
collateral by the next business day. Default or bankruptcy of the seller
may, however, expose the applicable Portfolio of Excelsior Fund to possible
delay in connection with the disposition of the underlying securities or
loss to the extent that proceeds from a sale of the underlying securities
were less than the repurchase price under the agreement.
25
<PAGE>
(D) DIVIDENDS AND DISTRIBUTIONS TO SHAREHOLDERS:
Dividends from net investment income are declared and paid quarterly. Net
realized capital gains, unless offset by any available capital loss
carryforward, are distributed to shareholders at least annually.
Dividends and distributions are determined in accordance with Federal
income tax regulations which may differ from generally accepted accounting
principles. These differences are primarily due to differing treatments for
net operating losses, foreign currency transactions, partnership income,
deferral of losses on wash sales and post-October losses.
In order to avoid a Federal excise tax, each Portfolio is required to
distribute certain minimum amounts of net realized capital gain and net
investment income for the respective periods ending October 31 and December
31 in each calendar year.
(E) FEDERAL TAXES:
It is the policy of Excelsior Fund that each Portfolio continue to
qualify as a regulated investment company, if such qualification is in the
best interest of the shareholders, by complying with the requirements of
the Internal Revenue Code applicable to regulated investment companies, and
by distributing substantially all of its taxable earnings to its
shareholders.
At March 31, 1996, the following Portfolios had approximate capital loss
carryforwards for Federal tax purposes available to offset future net
capital gains through the indicated expiration dates:
<TABLE>
<CAPTION>
EXPIRATION DATE
MARCH 31,
--------------------------
2002 2003 2004 TOTAL
-------- -------- -------- --------
<S> <C> <C> <C> <C>
Aging of America Fund.................. $ 32,000 $279,000 $ -- $311,000
Environmentally-Related Products and
Services Fund......................... 154,000 52,000 261,000 467,000
</TABLE>
To the extent that such carryforward is utilized, no capital gain
distribution will be made. During the year ended March 31, 1996, Equity
Fund, Aging of America Fund, Global Competitors Fund and Long-Term Supply
of Energy Fund utilized capital loss carryforwards for Federal tax purposes
totaling approximately $206,000, $22,000, $228,000 and $48,000,
respectively.
Net capital losses incurred after October 31 and within the taxable year
are deemed to arise on the first business day of a Portfolio's next taxable
year. Business and Industrial Restructuring Fund and Global Competitors
Fund incurred, and elected to defer, net capital losses of approximately
$2,000 and $87,000, respectively, for the year ended March 31, 1996.
26
<PAGE>
At September 30, 1996, aggregate gross unrealized appreciation for all
securities for which there was an excess of value over tax cost and
aggregate gross unrealized depreciation for all securities for which there
was an excess of tax cost over value is as follows:
<TABLE>
<CAPTION>
TAX BASIS TAX BASIS NET
UNREALIZED UNREALIZED UNREALIZED
APPRECIATION (DEPRECIATION) APPRECIATION
------------ -------------- ------------
<S> <C> <C> <C>
Equity Fund....................... $69,950,518 $ (4,814,991) $65,135,527
Income and Growth Fund............ 34,794,449 (2,091,004) 32,703,445
Aging of America Fund............. 9,542,030 (564,187) 8,977,843
Business and Industrial Restruc-
turing Fund...................... 21,710,943 (2,057,144) 19,653,799
Communication and Entertainment
Fund............................. 10,290,158 (2,503,921) 7,786,237
Early Life Cycle Fund............. 17,188,488 (10,629,625) 6,558,863
Environmentally-Related Products
and Services Fund................ 1,736,487 (129,107) 1,607,380
Global Competitors Fund........... 16,741,986 (1,461,850) 15,280,136
Long-Term Supply of Energy Fund... 5,012,368 (232,828) 4,779,540
Productivity Enhancers Fund....... 2,549,469 (180,590) 2,368,879
</TABLE>
(F) EXPENSE ALLOCATION:
Expenses directly attributable to a Portfolio or a class of shares in
such Portfolio are charged to that Portfolio or such share class. Other
expenses are allocated to the respective Portfolios based on average net
assets.
2. INVESTMENT ADVISORY FEE, ADMINISTRATION FEE, DISTRIBUTION EXPENSES AND
RELATED PARTY TRANSACTIONS
United States Trust Company of New York ("U.S. Trust") serves as the
investment adviser to Excelsior Fund. For the services provided pursuant to the
Investment Advisory Agreement, U.S. Trust is entitled to receive a fee,
computed daily and paid monthly, at the annual rates of .75% of the average
daily net assets of the Equity Fund and Income and Growth Fund, and .60% of the
average daily net assets of the Aging of America Fund, Business and Industrial
Restructuring Fund, Communication and Entertainment Fund, Early Life Cycle
Fund, Environmentally-Related Products and Services Fund, Global Competitors
Fund, Long-Term Supply of Energy Fund and Productivity Enhancers Fund.
27
<PAGE>
U.S. Trust, Chase Global Funds Services Company ("CGFSC"), a subsidiary of
The Chase Manhattan Bank and Federated Administrative Services (collectively,
the "Administrators") provide administrative services to Excelsior Fund. For
the services provided to the Portfolios, the Administrators are entitled
jointly to annual fees, computed daily and paid monthly, based on the combined
aggregate average daily net assets of Excelsior Fund (excluding the
international equity portfolios of Excelsior Fund and Excelsior Institutional
Trust). Excelsior Tax-Exempt Fund and Excelsior Institutional Trust, all of
which are affiliated investment companies, as follows: .200% of the first $200
million, .175% of the next $200 million, and .150% over $400 million.
Administration fees payable by each Portfolio of the three investment
companies are determined in proportion to the relative average daily net
assets of the respective Portfolios for the period paid. For the six months
ended September 30, 1996, Administration fees charged by U.S. Trust were as
follows:
<TABLE>
<S> <C>
Equity Fund............................................................ $15,602
Income and Growth Fund................................................. 7,234
Aging of America Fund.................................................. 2,700
Business and Industrial Restructuring Fund............................. 4,903
Communication and Entertainment Fund................................... 2,881
Early Life Cycle Fund.................................................. 4,949
Environmentally-Related Products and Services Fund..................... 329
Global Competitors Fund................................................ 4,597
Long-Term Supply of Energy Fund........................................ 1,530
Productivity Enhancers Funds........................................... 1,527
</TABLE>
From time to time, as they may deem appropriate in their sole discretion, or
pursuant to applicable state expense limitations, U.S. Trust and the
Administrators may undertake to waive a portion or all of the fees payable to
them and also may reimburse the Portfolios for a portion of other expenses. In
addition, until further notice to Excelsior Fund, U.S. Trust intends to
voluntarily waive fees to the extent necessary for each of Aging of America
Fund, Business and Industrial Restructuring Fund, Communication and
Entertainment Fund, Early Life Cycle Fund, Environmentally-Related Products
and Services Fund, Global Competitors Fund, Long-Term Supply of Energy Fund
and Productivity Enhancers Fund to maintain an annual expense ratio of not
more than .99%. For the six months ended September 30, 1996, pursuant to this
voluntary expense limitation U.S. Trust waived fees as follows:
<TABLE>
<S> <C>
Environmentally-Related Products and Services Fund...................... $9,183
Productivity Enhancers Fund............................................. 292
</TABLE>
Excelsior Fund has also entered into administrative servicing agreements
with various service organizations (which may include affiliates of U.S.
Trust) requiring them to provide administrative support services to their
customers owning shares of the Portfolios. As a consideration for the
administrative services provided by each service organization to its
customers, each Portfolio will pay the service organization an administrative
service fee at the annual rate of up to .40% of the average daily net asset
value of its shares held by the service organizations' customers. Such
services may include assisting in processing purchase, exchange and redemption
requests; transmitting and receiving funds in connection with customer orders
to purchase, exchange or redeem shares; and providing periodic statements.
Until further notice to Excelsior Fund, U.S. Trust and the Administrators have
voluntarily agreed to waive investment advisory and administration fees
payable by each Portfolio in an amount equal to administrative service fees
payable by that Portfolio. For the six months ended September 30,
28
<PAGE>
1996, U.S. Trust and the Administrators waived investment advisory and
administration fees in amounts equal to the administrative service fees for
the Portfolios as follows:
<TABLE>
<CAPTION>
U.S.
TRUST ADMINISTRATORS
------- --------------
<S> <C> <C>
Equity Fund............................................. $67,842 $3,678
Income and Growth Fund.................................. 51,315 630
Aging of America Fund................................... 8,873 30
Business and Industrial Restructuring Fund.............. 18,606 35
Communication and Entertainment Fund.................... 12,359 20
Early Life Cycle Fund................................... 38,358 61
Environmentally-Related Products and Services Fund...... 1,532 1
Global Competitors Fund................................. 14,123 6
Long-Term Supply of Energy Fund......................... 5,587 2
Productivity Enhancers Fund............................. 6,667 6
</TABLE>
Edgewood Services, Inc. (the "Distributor"), a wholly-owned subsidiary of
Federated Investors, serves as the sponsor and distributor of Excelsior Fund.
Certain sales of Excelsior Fund's shares are subject to a maximum sales charge
of 4.50% of the offering price. Shares of each Portfolio are sold on a
continual basis by the Distributor.
Under the Excelsior Funds' Distribution Plan, adopted pursuant to Rule 12b-1
under the 1940 Act, the Trust Shares of each Fund bear the expense of
distributions fees at the maximum annual rate of .75% of the average daily net
asset value of the Fund's outstanding Trust Shares. Trust Shares of each
Excelsior Fund currently bear the expense of such distribution fees at the
annual rate of .35% of the average daily net asset value of the Fund's
outstanding Trust Shares.
Each Director of Excelsior Fund receives an annual fee of $9,000, plus a
meeting fee of $1,500 for each meeting attended, and is reimbursed for
expenses incurred for attending meetings. The Chairman receives an additional
annual fee of $5,000.
3. PURCHASES AND SALES OF SECURITIES:
For the six months ended September 30, 1996, purchases and sales of
securities, excluding short-term investments, for the Portfolios aggregated:
<TABLE>
<CAPTION>
CONTRIBUTIONS
PURCHASES IN-KIND SALES
----------- ------------- -----------
<S> <C> <C> <C>
Equity Fund............................. $54,547,249 $79,831,593 $59,055,553
Income and Growth Fund.................. 16,548,680 -- 22,602,803
Aging of America Fund................... 21,069,592 -- 17,562,543
Business and Industrial Restructuring
Fund................................... 38,654,030 -- 21,561,109
Communication and Entertainment Fund.... 16,462,908 -- 13,967,906
Early Life Cycle Fund................... 70,981,910 10,267,561 2,908,328
Environmentally-Related Products and
Services Fund.......................... 4,814,748 -- 756,536
Global Competitors Fund................. 15,814,299 -- 2,650,829
Long-Term Supply of Energy Fund......... 12,255,604 -- 11,963,912
Productivity Enhancers Fund............. 44,067,590 -- 46,621,084
</TABLE>
29
<PAGE>
4. COMMON STOCK:
Excelsior Fund currently has authorized capital classified into forty classes
of shares, each representing interests in one of twenty separate portfolios.
Authorized capital for each Portfolio is as follows: With respect to each of
the Equity and Income and Growth Funds, 375 million shares of Common Stock and
500 million shares of Common Stock--Special Series 1 (Trust Shares); and with
respect to each of the Aging of America Fund, Business and Industrial
Restructuring Fund, Communication and Entertainment Fund, Early Life Cycle
Fund, Environmentally-Related Products and Services Fund, Global Competitors
Fund, Long-Term Supply of Energy Fund and Productivity Enhancers Fund, 500
million shares of Common Stock and 500 million shares of Common Stock--Special
Series 1 (Trust Shares).
Each share (irrespective of series designation) has a par value of $.001, and
represents an equal proportionate interest in the particular Portfolio with
other shares of the same Portfolio, and is entitled to such dividends and
distributions of taxable earnings on the assets belonging to such Portfolio as
are declared at the discretion of Excelsior Fund's Board of Directors.
<TABLE>
<CAPTION>
EQUITY FUND
--------------------------------------------------
SIX MONTHS ENDED YEAR ENDED
09/30/96 03/31/96
------------------------ ------------------------
SHARES AMOUNT SHARES AMOUNT
---------- ------------ ---------- ------------
<S> <C> <C> <C> <C>
Sold...................... 1,319,189 $ 32,367,797 2,335,582 $ 53,181,056
Contribution in-kind...... 3,211,246 79,831,593 -- --
Issued as reinvestment of
dividends................ 86,946 2,171,707 305,329 6,724,708
Redeemed.................. (1,042,781) (25,672,190) (1,343,291) (30,587,413)
---------- ------------ ---------- ------------
Net Increase.............. 3,574,600 $ 88,698,907 1,297,620 $ 29,318,351
========== ============ ========== ============
<CAPTION>
INCOME AND GROWTH FUND
--------------------------------------------------
SIX MONTHS ENDED YEAR ENDED
09/30/96 03/31/96
------------------------ ------------------------
SHARES AMOUNT SHARES AMOUNT
---------- ------------ ---------- ------------
<S> <C> <C> <C> <C>
Sold...................... 657,524 $ 9,569,552 2,141,034 $ 28,619,545
Issued as reinvestment of
dividends................ 64,061 939,623 67,047 859,603
Redeemed.................. (890,086) (12,960,696) (1,842,621) (24,372,374)
---------- ------------ ---------- ------------
Net Increase (Decrease)... (168,501) $ (2,451,521) 365,460 $ 5,106,774
========== ============ ========== ============
<CAPTION>
AGING OF AMERICA FUND
--------------------------------------------------
SIX MONTHS ENDED YEAR ENDED
09/30/96 03/31/96
------------------------ ------------------------
SHARES AMOUNT SHARES AMOUNT
---------- ------------ ---------- ------------
<S> <C> <C> <C> <C>
Sold...................... 753,522 $ 7,331,893 2,314,243 $ 20,136,308
Issued as reinvestment of
dividends................ 516 5,006 717 6,037
Redeemed.................. (442,302) (4,256,954) (577,612) (5,224,382)
---------- ------------ ---------- ------------
Net Increase.............. 311,736 $ 3,079,945 1,737,348 $ 14,917,963
========== ============ ========== ============
</TABLE>
30
<PAGE>
<TABLE>
<CAPTION>
BUSINESS AND INDUSTRIAL
RESTRUCTURING FUND
------------------------------------------------
SIX MONTHS ENDED YEAR ENDED
09/30/96 03/31/96
---------------------- ------------------------
SHARES AMOUNT SHARES AMOUNT
--------- ----------- ---------- ------------
<S> <C> <C> <C> <C>
Sold:
Shares.................... 1,607,555 $23,122,467 2,885,350 $36,357,535
Trust Shares.............. 2,449 35,740 -- --
Issued as reinvestment of
dividends:
Shares.................... 9,688 142,437 8,050 103,087
Trust Shares.............. -- -- -- --
Redeemed:
Shares.................... (433,681) (6,204,597) (476,976) (5,855,224)
Trust Shares.............. -- -- -- ---
--------- ----------- ---------- ------------
Net Increase................ 1,186,011 $17,096,047 2,416,424 $30,605,398
========= =========== ========== ============
<CAPTION>
COMMUNICATION AND ENTERTAINMENT FUND
------------------------------------------------
SIX MONTHS ENDED YEAR ENDED
09/30/96 03/31/96
---------------------- ------------------------
SHARES AMOUNT SHARES AMOUNT
--------- ----------- ---------- ------------
<S> <C> <C> <C> <C>
Sold........................ 695,294 $ 7,560,184 2,119,351 $ 22,797,588
Issued as reinvestment of
dividends.................. 2,617 30,755 29,026 316,412
Redeemed.................... (551,085) (5,753,047) (701,525) (7,460,709)
--------- ----------- ---------- ------------
Net Increase................ 146,826 $ 1,837,892 1,446,852 $ 15,653,291
========= =========== ========== ============
<CAPTION>
EARLY LIFE CYCLE FUND
------------------------------------------------
SIX MONTHS ENDED YEAR ENDED
09/30/96 03/31/96
---------------------- ------------------------
SHARES AMOUNT SHARES AMOUNT
--------- ----------- ---------- ------------
<S> <C> <C> <C> <C>
Sold:
Shares.................... 1,033,756 $11,304,629 3,520,395 $ 36,370,860
Trust Shares.............. 262 2,597 -- --
Contribution in-kind:
Shares.................... 873,834 10,267,561 -- --
Trust Shares.............. -- -- -- --
Issued as reinvestment of
dividends:
Shares.................... 17,876 213,440 41,814 408,622
Trust Shares.............. -- -- -- --
Redeemed:
Shares.................... (834,099) (8,737,050) (1,214,105) (12,475,517)
Trust Shares.............. -- -- -- --
--------- ----------- ---------- ------------
Net Increase................ 1,091,629 $13,051,177 2,348,104 $ 24,303,965
========= =========== ========== ============
</TABLE>
31
<PAGE>
<TABLE>
<CAPTION>
ENVIRONMENTALLY-RELATED PRODUCTS
AND SERVICES FUND
-----------------------------------------------
SIX MONTHS ENDED YEAR ENDED
09/30/96 03/31/96
---------------------- -----------------------
SHARES AMOUNT SHARES AMOUNT
--------- ----------- ---------- -----------
<S> <C> <C> <C> <C>
Sold......................... 273,198 $ 2,280,111 186,141 $ 1,314,576
Issued as reinvestment of
dividends................... -- -- -- --
Redeemed..................... (52,063) (429,312) (377,073) (2,674,660)
--------- ----------- ---------- -----------
Net Increase (Decrease)...... 221,135 $ 1,850,799 (190,932) $(1,360,084)
========= =========== ========== ===========
<CAPTION>
GLOBAL COMPETITORS FUND
-----------------------------------------------
SIX MONTHS ENDED YEAR ENDED
09/30/96 03/31/96
---------------------- -----------------------
SHARES AMOUNT SHARES AMOUNT
--------- ----------- ---------- -----------
<S> <C> <C> <C> <C>
Sold......................... 1,523,967 $16,491,750 4,254,987 $42,316,428
Issued as reinvestment of
dividends................... 1,048 11,309 1,393 13,702
Redeemed..................... (539,775) (5,803,582) (640,495) (6,356,442)
--------- ----------- ---------- -----------
Net Increase................. 985,240 $10,699,477 3,615,885 $35,973,688
========= =========== ========== ===========
<CAPTION>
LONG-TERM SUPPLY OF ENERGY FUND
-----------------------------------------------
SIX MONTHS ENDED YEAR ENDED
09/30/96 03/31/96
---------------------- -----------------------
SHARES AMOUNT SHARES AMOUNT
--------- ----------- ---------- -----------
<S> <C> <C> <C> <C>
Sold......................... 407,900 $ 4,234,443 1,212,809 $10,257,682
Issued as reinvestment of
dividends................... 1,617 16,913 820 6,920
Redeemed..................... (221,588) (2,280,283) (770,397) (6,756,240)
--------- ----------- ---------- -----------
Net Increase................. 187,929 $ 1,971,073 443,232 $ 3,508,362
========= =========== ========== ===========
<CAPTION>
PRODUCTIVITY ENHANCERS FUND
-----------------------------------------------
SIX MONTHS ENDED YEAR ENDED
09/30/96 03/31/96
---------------------- -----------------------
SHARES AMOUNT SHARES AMOUNT
--------- ----------- ---------- -----------
<S> <C> <C> <C> <C>
Sold......................... 488,455 $ 4,115,843 2,029,415 $18,271,102
Issued as reinvestment of
dividends................... 12,604 110,279 16,492 143,555
Redeemed..................... (543,203) (4,620,725) (1,005,818) (9,148,291)
--------- ----------- ---------- -----------
Net Increase (Decrease)...... (42,144) $ (394,603) 1,040,089 $ 9,266,366
========= =========== ========== ===========
</TABLE>
5. ORGANIZATION COSTS
Excelsior Fund has borne all costs in connection with the initial
organization of new portfolios, including the fees for registering and
qualifying its shares for distribution under Federal and state securities
regulations. All such costs are being amortized on the straight-line basis over
periods of five years from the dates on which each Portfolio commenced
operations.
32
