<PAGE>
[LOGO OF EXCELSIOR APPEARS HERE]
INTERNATIONAL EQUITY PORTFOLIOS
SEMI-ANNUAL REPORT
SEPTEMBER 30, 1998
<PAGE>
TABLE OF CONTENTS
<TABLE>
<CAPTION>
PAGE
----
<S> <C>
STATEMENTS OF ASSETS AND LIABILITIES...................................... 1
STATEMENTS OF OPERATIONS.................................................. 2
STATEMENTS OF CHANGES IN NET ASSETS....................................... 3
FINANCIAL HIGHLIGHTS -- SELECTED PER SHARE DATA AND RATIOS................ 4
PORTFOLIOS OF INVESTMENTS
International Fund....................................................... 6
Pacific/Asia Fund........................................................ 9
Pan European Fund........................................................ 11
Latin America Fund....................................................... 13
Emerging Markets Fund.................................................... 15
NOTES TO FINANCIAL STATEMENTS............................................. 17
</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, U.S. TRUST COMPANY OF
CONNECTICUT, THEIR 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>
EXCELSIOR FUNDS, INC.
STATEMENTS OF ASSETS AND LIABILITIES
SEPTEMBER 30, 1998 (UNAUDITED)
<TABLE>
<CAPTION>
PAN LATIN EMERGING
INTERNATIONAL PACIFIC/ASIA EUROPEAN AMERICA MARKETS
FUND FUND FUND FUND FUND
------------- ------------ ------------ ------------ -----------
<S> <C> <C> <C> <C> <C>
ASSETS:
Investments, at cost --
see accompanying
portfolios............ $200,215,772 $ 31,310,453 $161,480,429 $ 55,149,924 $ 9,526,543
============ ============ ============ ============ ===========
Investments, at value
(Note 1).............. $195,713,427 $ 20,133,238 $178,312,005 $ 27,236,142 $ 6,283,122
Cash................... 117,611 -- 222,396 89,620 --
Foreign currency (cost
$11,082).............. -- -- -- 10,355 --
Dividends receivable... 399,625 80,297 174,463 98,722 21,277
Interest receivable.... 93,746 2,315 34,695 1,871 803
Receivable for
investments sold...... 1,131,308 1,099,495 1,583,508 171,263 3,419
Receivable for fund
shares sold........... 85,856 2,260 149,376 -- --
Withholding tax
receivable............ 116,231 1,224 127,531 53,788 --
Net unrealized
appreciation on open
forward foreign
currency contracts.... -- 10,725 -- -- --
Prepaid expenses....... 4,518 1,166 4,210 2,364 --
Receivable for
Investment Advisory
fees (Note 2)......... -- -- -- -- 3,140
Unamortized
organization costs
(Note 5).............. -- -- -- -- 33,328
------------ ------------ ------------ ------------ -----------
TOTAL ASSETS........... 197,662,322 21,330,720 180,608,184 27,664,125 6,345,089
LIABILITIES:
Payable for investments
purchased............. -- 71,768 -- -- 662,396
Payable for fund shares
redeemed.............. 5,149,054 154,767 275,405 3,968 --
Investment advisory
fees payable (Note
2).................... 137,205 22,073 134,417 18,434 --
Administration fees
payable (Note 2)...... 33,152 2,623 30,919 4,369 753
Administration service
fees payable (Note
2).................... 35,637 3,808 24,491 7,179 1,540
Dividends payable...... -- 13,372 -- 3,544 --
Directors' fees payable
(Note 2).............. 1,255 1,170 2,270 1,675 53
Foreign taxes payable.. -- -- -- -- 2,018
Net unrealized
depreciation on open
forward foreign
currency contracts.... 78,300 -- -- -- --
Due to custodian bank.. -- 307,198 -- -- 53,676
Accrued expenses and
other payables........ 69,317 13,604 64,633 35,294 49,023
------------ ------------ ------------ ------------ -----------
TOTAL LIABILITIES...... 5,503,920 590,383 532,135 74,463 769,459
------------ ------------ ------------ ------------ -----------
NET ASSETS.............. $192,158,402 $ 20,740,337 $180,076,049 $ 27,589,662 $ 5,575,630
============ ============ ============ ============ ===========
NET ASSETS consist of:
Undistributed
(distributions in
excess of) net
investment income..... $ (958,225) $ (1,470,780) $ 529,883 $ 502,152 $ 65,921
Accumulated net
realized gain (loss)
on investments and
foreign currency
translations.......... (1,562,810) (24,964,597) 15,205,740 (2,435,888) (215,590)
Unrealized appreciation
(depreciation) of
investments and
foreign currency
translations.......... (4,571,549) (11,175,149) 16,842,822 (27,918,952) (3,242,678)
Par value (Note 4)..... 17,950 4,338 14,939 5,373 1,492
Paid-in capital in
excess of par value... 199,233,036 58,346,525 147,482,665 57,436,977 8,966,485
------------ ------------ ------------ ------------ -----------
TOTAL NET ASSETS........ $192,158,402 $ 20,740,337 $180,076,049 $ 27,589,662 $ 5,575,630
============ ============ ============ ============ ===========
Shares of Common Stock
Outstanding............ 17,949,583 4,338,401 14,938,545 5,372,894 1,492,420
NET ASSET VALUE PER
SHARE.................. $10.71 $4.78 $12.05 $5.13 $3.74
</TABLE>
See Notes to Financial Statements
1
<PAGE>
EXCELSIOR FUNDS, INC.
STATEMENTS OF OPERATIONS
SIX MONTHS ENDED SEPTEMBER 30, 1998 (UNAUDITED)
<TABLE>
<CAPTION>
PAN LATIN EMERGING
INTERNATIONAL PACIFIC/ASIA EUROPEAN AMERICA MARKETS
FUND FUND FUND FUND FUND
------------- ------------ ------------ ------------ -----------
<S> <C> <C> <C> <C> <C>
INVESTMENT INCOME:
Dividend income........... $ 2,132,761 $ 314,725 $ 2,391,890 $ 1,046,565 $ 108,312
Interest income........... 448,316 20,012 214,428 34,150 23,590
Less: Foreign taxes
withheld................. (246,255) (27,742) (271,311) (32,810) (14,173)
------------ ----------- ------------ ------------ -----------
TOTAL INCOME.............. 2,334,822 306,995 2,335,007 1,047,905 117,729
EXPENSES:
Investment advisory fees
(Note 2)................. 1,094,312 160,000 1,133,514 322,290 38,944
Administration fees (Note
2)....................... 218,862 32,000 226,703 64,458 6,236
Custodian fees............ 171,173 24,903 173,699 52,809 8,864
Administrative servicing
fees (Note 2)............ 101,484 15,914 86,282 33,436 4,579
Shareholder servicing
agent fees............... 29,113 17,225 22,397 23,433 3,453
Legal and audit fees...... 12,879 2,965 15,210 4,691 425
Shareholder reports....... 9,440 2,169 9,697 4,109 344
Registration and filing
fees..................... 7,586 6,704 7,690 7,922 6,042
Directors' fees and
expenses (Note 2)........ 5,070 825 4,144 2,251 117
Foreign taxes expense..... -- -- -- 601 52
Amortization of
organization costs (Note
5)....................... -- -- -- -- 3,927
Miscellaneous expenses.... 10,829 1,950 11,038 3,471 1,212
------------ ----------- ------------ ------------ -----------
TOTAL EXPENSES............ 1,660,748 264,655 1,690,374 519,471 74,195
Fees waived by investment
adviser and
administrators (Note 2).. (101,484) (15,914) (86,282) (33,436) (22,387)
------------ ----------- ------------ ------------ -----------
NET EXPENSES.............. 1,559,264 248,741 1,604,092 486,035 51,808
------------ ----------- ------------ ------------ -----------
NET INVESTMENT INCOME...... 775,558 58,254 730,915 561,870 65,921
------------ ----------- ------------ ------------ -----------
REALIZED AND UNREALIZED
GAIN (LOSS) ON INVESTMENTS
(NOTE 1):
Net realized gain (loss):
Security transactions..... (110,910) (9,529,940) 7,426,842 (5,598,885) (213,666)
Foreign currency
transactions............. 404,261 434,474 (33,829) (47,763) (1,924)
------------ ----------- ------------ ------------ -----------
Total net realized gain
(loss)................... 293,351 (9,095,466) 7,393,013 (5,646,648) (215,590)
Change in unrealized
appreciation/depreciation
of investments and
foreign currency
translations during the
period................... (41,649,159) (612,643) (41,116,816) (35,568,403) (3,419,381)
------------ ----------- ------------ ------------ -----------
NET REALIZED AND UNREALIZED
LOSS ON INVESTMENTS....... (41,355,808) (9,708,109) (33,723,803) (41,215,051) (3,634,971)
------------ ----------- ------------ ------------ -----------
NET DECREASE IN NET ASSETS
RESULTING FROM
OPERATIONS................ $(40,580,250) $(9,649,855) $(32,992,888) $(40,653,181) $(3,569,050)
============ =========== ============ ============ ===========
</TABLE>
See Notes to Financial Statements
2
<PAGE>
See Notes to Financial Statements
EXCELSIOR FUNDS, INC.
STATEMENTS OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
PAN LATIN EMERGING
INTERNATIONAL PACIFIC/ASIA EUROPEAN AMERICA MARKETS
FUND FUND FUND FUND FUND*
------------- ------------ ------------ ------------ -----------
<S> <C> <C> <C> <C> <C>
SIX MONTHS ENDED SEPTEMBER
30, 1998 (UNAUDITED)
Net investment income..... $ 775,558 $ 58,254 $ 730,915 $ 561,870 $ 65,921
Net realized gain (loss)
on investments and
foreign currency
transactions............. 293,351 (9,095,466) 7,393,013 (5,646,648) (215,590)
Change in unrealized
appreciation/depreciation
of investments and
foreign currency
translations during the
period................... (41,649,159) (612,643) (41,116,816) (35,568,403) (3,419,381)
------------ ------------ ------------ ------------ -----------
Net decrease in net assets
resulting from
operations............... (40,580,250) (9,649,855) (32,992,888) (40,653,181) (3,569,050)
Distributions to
shareholders:
From net investment
income.................. (1,207,206) (1,122,745) -- (506,974) (20,788)
In excess of net
investment income....... -- -- -- -- --
From net realized gain on
investments............. -- -- -- -- --
In excess of net realized
gain on investments..... -- -- -- -- --
Increase (decrease) in net
assets from fund share
transactions (Note 4).... 29,056,821 (12,295,380) 5,433,163 (19,946,545) 2,630,018
------------ ------------ ------------ ------------ -----------
Net decrease in net
assets................... (12,730,635) (23,067,980) (27,559,725) (61,106,700) (959,820)
NET ASSETS:
Beginning of period...... 204,889,037 43,808,317 207,635,774 88,696,362 6,535,450
------------ ------------ ------------ ------------ -----------
End of period (1)........ $192,158,402 $ 20,740,337 $180,076,049 $ 27,589,662 $ 5,575,630
============ ============ ============ ============ ===========
(1) Including
undistributed
(distributions in
excess of) net
investment income.... $ (958,225) $ (1,470,780) $ 529,883 $ 502,152 $ 65,921
============ ============ ============ ============ ===========
YEAR ENDED MARCH 31, 1998
Net investment income
(loss)................... $ 554,555 $ 169,219 $ (212,099) $ 846,205 $ 22,888
Net realized gain (loss)
on investments and
foreign currency
transactions............. 2,174,617 (15,928,807) 11,703,939 9,051,792 (4,031)
Change in unrealized
appreciation/depreciation
of investments and
foreign currency
translations during the
period................... 27,209,443 (9,416,388) 44,555,016 (1,625,807) 176,703
------------ ------------ ------------ ------------ -----------
Net increase (decrease) in
net assets resulting from
operations............... 29,938,615 (25,175,976) 56,046,856 8,272,190 195,560
Distributions to
shareholders:
From net investment
income.................. (310,285) (53,878) (12,080) (222,831) --
In excess of net
investment income....... (526,577) (406,289) -- -- --
From net realized gain on
investments............. (4,535,116) -- (11,544,148) (1,470,567) --
In excess of net realized
gain on investments..... (1,856,161) -- -- -- --
Increase (decrease) in net
assets from fund share
transactions (Note 4).... 55,363,423 (20,500,537) 41,153,647 11,217,711 6,339,890
------------ ------------ ------------ ------------ -----------
Net increase (decrease) in
net assets............... 78,073,899 (46,136,680) 85,644,275 17,796,503 6,535,450
--------
NET ASSETS:
Beginning of period...... 126,815,138 89,944,997 121,991,499 70,899,859 --
------------ ------------ ------------ ------------ -----------
End of period (2)........ $204,889,037 $ 43,808,317 $207,635,774 $ 88,696,362 $ 6,535,450
============ ============ ============ ============ ===========
(2) Including
undistributed
(distributions in
excess of) net
investment income.... $ (526,577) $ (406,289) $ (201,032) $ 447,256 $ 20,788
============ ============ ============ ============ ===========
--------
</TABLE>
* Emerging Markets Fund commenced operations on January 2, 1998.
3
<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,
1994................... $ 8.66 $ 0.05 $ 1.88 $ 1.93 $(0.02) $(0.12)
1995................... 10.44 0.10 (0.29) (0.19) -- (0.11)
1996................... 9.82 0.10 1.15 1.25 (0.08) (0.01)
1997................... 10.91 0.09 0.63 0.72 (0.10) --
1998................... 11.34 0.04 2.11 2.15 (0.02) (0.04)
Six Months Ended
September 30, 1998
(Unaudited)........... 13.00 0.05 (2.27) (2.22) (0.07) --
PACIFIC/ASIA FUND --
(12/31/92*)
Year Ended March 31,
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)
1997................... 9.78 0.07 (0.53) (0.46) (0.07) -- ++
1998................... 9.09 0.01 (2.52) (2.51) (0.01) (0.05)
Six Months Ended
September 30, 1998
(Unaudited)........... 6.52 (0.08) (1.46) (1.54) (0.20) --
PAN EUROPEAN FUND --
(12/31/92*)
Year Ended March 31,
1994................... $ 7.34 $ 0.03 $ 0.70 $ 0.73 -- $(0.04)
1995................... 8.03 0.09 0.25 0.34 $(0.09) --
1996................... 8.19 0.11 1.35 1.46 (0.10) --
1997................... 9.19 0.11 2.01 2.12 (0.10) -- ++
1998................... 10.94 (0.01) 4.01 4.00 -- --
Six Months Ended
September 30, 1998
(Unaudited)........... 14.13 0.05 (2.13) (2.08) -- --
LATIN AMERICA FUND --
(12/31/92*)
Year Ended March 31,
1994................... $ 7.12 $ 0.05 $ 2.24 $ 2.29 $(0.03) $(0.02)
1995................... 9.30 0.01 (2.56) (2.55) -- (0.17)
1996................... 5.86 0.10 1.49 1.59 (0.04) (0.04)
1997................... 7.37 0.05 2.09 2.14 (0.05) -- ++
1998................... 9.46 0.10 1.22 1.32 (0.02) --
Six Months Ended
September 30, 1998
(Unaudited)........... 10.60 0.10 (5.51) (5.41) (0.06) --
EMERGING MARKETS FUND --
(01/02/98*)
Period Ended March 31,
1998................... $ 7.00 -- ++ -- ++ -- ++ -- --
Six Months Ended
September 30, 1998
(Unaudited)........... 7.00 $ 0.04 $(3.28) $(3.24) $(0.02) --
</TABLE>
* Commencement of operations
** Annualized
*** Not Annualized
+ Expense ratios before waiver of fees and reimbursement of expenses (if any)
by adviser and administrators.
++ Amount represents less than $0.01 per share.
@ The annualized ratio of net operating expenses to average net assets,
excluding foreign investment taxes, is 1.65%.
See Notes to Financial Statements
4
<PAGE>
<TABLE>
<CAPTION>
DISTRIBUTIONS
IN EXCESS RATIO OF NET RATIO OF GROSS RATIO OF NET
DISTRIBUTIONS OF NET NET ASSETS, OPERATING OPERATING INVESTMENT
FROM NET REALIZED NET ASSET END OF EXPENSES EXPENSES INCOME (LOSS) PORTFOLIO
REALIZED GAIN GAIN ON TOTAL VALUE, END TOTAL PERIOD TO AVERAGE TO AVERAGE TO AVERAGE TURNOVER
ON INVESTMENTS INVESTMENTS DISTRIBUTIONS OF PERIOD RETURN (000) NET ASSETS NET ASSETS+ NET ASSETS RATE
- -------------- ------------- ------------- ---------- ------ ----------- ------------ -------------- ------------- ---------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
$(0.01) -- $(0.15) $10.44 22.34 % $ 55,737 1.53% 1.53% 0.18% 64%
(0.32) -- (0.43) 9.82 (1.93)% 64,052 1.47% 1.53% 0.71% 66%
(0.07) -- (0.16) 10.91 12.77 % 97,850 1.40% 1.50% 0.82% 39%
(0.19) -- (0.29) 11.34 6.78 % 126,815 1.43% 1.51% 0.70% 116%
(0.31) $(0.12) (0.49) 13.00 19.42 % 204,889 1.44% 1.52% 0.32% 37%
-- -- (0.07) 10.71 (17.18)%*** 192,158 1.43%** 1.52%** 0.71%** 16%**
$(0.28) -- $(0.39) $10.04 38.11 % $ 53,027 1.53% 1.77% 0.54% 68%
(0.83) -- (1.09) 8.45 (5.89)% 47,617 1.47% 1.52% 0.85% 69%
(0.02) -- (0.12) 9.78 17.22 % 76,192 1.43% 1.51% 1.12% 29%
(0.16) -- ++ (0.23) 9.09 (4.80)% 89,945 1.45% 1.52% 0.69% 126%
-- -- (0.06) 6.52 (27.56)% 43,808 1.48% 1.57% 0.22% 52%
-- -- (0.20) 4.78 (23.97)%*** 20,740 1.56%** 1.66%** 0.37%** 39%**
-- -- $(0.04) $ 8.03 10.05 % $ 36,675 1.61% 1.72% 0.06% 30%
$(0.09) -- (0.18) 8.19 4.33 % 39,977 1.51% 1.57% 1.11% 47%
(0.36) -- (0.46) 9.19 18.25 % 47,916 1.46% 1.55% 1.28% 42%
(0.27) -- (0.37) 10.94 23.76 % 121,991 1.45% 1.52% 1.23% 82%
(0.81) -- (0.81) 14.13 38.02 % 207,636 1.43% 1.50% (0.13% 40%
-- -- -- 12.05 (14.72)%*** 180,076 1.42%** 1.49%** 0.65%** 27%**
$(0.06) -- $(0.11) $ 9.30 32.25 % $ 39,282 1.49% 1.71% 0.29% 51%
-- $(0.72) (0.89) 5.86 (30.47)% 27,344 1.50% 1.57% 0.06% 69%
-- -- (0.08) 7.37 27.29 % 43,160 1.48% 1.57% 1.12% 54%
-- -- (0.05) 9.46 29.09 % 70,900 1.48% 1.56% 0.50% 73%
(0.16) -- (0.18) 10.60 14.05 % 88,696 1.50% 1.60% 0.88% 77%
-- -- (0.06) 5.13 (51.24)%*** 27,590 1.52%** 1.62%** 1.75%** 13%**
-- -- -- $ 7.00 (0.14)%*** $ 6,535 1.85%**@ 2.74%** 2.33%** --
-- -- $(0.02) 3.74 (46.40)%*** 5,576 1.66%**@ 2.38%** 2.12%** 6%**
<CAPTION>
FEE
WAIVERS
(NOTE 2)
---------
<C>
--
$0.01
0.01
0.01
0.01
0.01
$0.04
0.01
0.01
0.01
0.01
0.02
$0.05
-- ++
0.01
0.01
0.01
0.01
$0.03
0.01
0.01
0.01
0.01
0.01
-- ++
$0.01
</TABLE>
See Notes to Financial Statements
5
<PAGE>
EXCELSIOR FUNDS, INC.
PORTFOLIO OF INVESTMENTS SEPTEMBER 30, 1998 (UNAUDITED)
INTERNATIONAL FUND
<TABLE>
<CAPTION>
VALUE
SHARES (NOTE 1)
----------- ------------
<S> <C>
COMMON STOCKS -- 88.01%
FRANCE -- 14.23%
58,142 AXA-UAP............................................. $ 5,327,554
5,469 Carrefour S.A. ..................................... 3,468,799
26,580 Compagnie Financiere de Paribas..................... 1,433,780
154,330 Dassault Systemes S.A. ............................. 5,843,954
48,142 Elf Aquitaine S.A. ................................. 5,941,865
45,644 +SGS-Thomson Microelectronics N.V. ................. 2,119,716
25,488 Total S.A., Class B................................. 3,214,112
------------
27,349,780
------------
JAPAN -- 11.15%
83,000 Canon, Inc. ........................................ 1,684,322
168,600 Credit Saison Co., Ltd. ............................ 3,260,835
159,800 Meitec Corp. ....................................... 3,453,553
1,270 NTT Data Corp. ..................................... 4,633,407
67,500 +Nu Skin Enterprises, Inc., Class A................. 742,500
28,900 Rohm Co. ........................................... 2,752,381
70,400 Sony Corp. ......................................... 4,894,476
------------
21,421,474
------------
UNITED KINGDOM & POSSESSIONS -- 7.90%
554,754 Airtours plc........................................ 3,347,174
190,303 Granada Group plc................................... 2,393,464
320,200 Serco Group plc..................................... 5,774,125
1,136,192 Siebe plc........................................... 3,669,060
------------
15,183,823
------------
GERMANY -- 7.53%
132,600 GEA AG.............................................. 4,471,894
12,999 SAP AG.............................................. 5,793,253
33,305 SGL Carbon AG....................................... 2,334,183
34,225 Siemens AG.......................................... 1,871,776
------------
14,471,106
------------
SWITZERLAND -- 6.44%
185 Lindt & Spruengli AG................................ 4,422,631
3,525 Novartis AG (Registered)............................ 5,666,455
211 Roche Holding AG.................................... 2,277,528
------------
12,366,614
------------
AUSTRALIA -- 5.06%
280,926 Brambles Industries Ltd. ........................... 6,067,467
434,902 F.H. Faulding & Co., Ltd. .......................... 1,725,034
</TABLE>
<TABLE>
<CAPTION>
VALUE
SHARES (NOTE 1)
----------- ------------
<S> <C>
COMMON STOCKS -- (CONTINUED)
AUSTRALIA -- (CONTINUED)
90,820 Lend Lease Corp., Ltd. ............................. $ 1,938,493
------------
9,730,994
------------
ITALY -- 4.95%
748,125 Edison S.p.A. ...................................... 5,693,093
1,189,032 Telecom Italia S.p.A. .............................. 3,825,362
------------
9,518,455
------------
NETHERLANDS -- 4.30%
98,280 ING Groep N.V. ..................................... 4,430,271
19,991 Wolters Kluwer N.V. ................................ 3,839,198
------------
8,269,469
------------
SWEDEN -- 3.65%
53,466 Autoliv Inc. ....................................... 1,470,315
293,556 Celsius AB, Series B................................ 5,543,740
------------
7,014,055
------------
CANADA -- 3.28%
313,200 Bombardier Inc., Class B............................ 3,449,204
28,683 Northern Telecom Ltd. .............................. 923,205
83,200 Thomson Corp. ...................................... 1,922,517
------------
6,294,926
------------
THAILAND -- 3.01%
604,928 Banpu Public Co., Ltd. (Registered)................. 1,303,394
749,600 BEC World Public Co., Ltd. (Foreign)................ 3,572,238
506,400 Dhipaya Insurance Public Co., Ltd. ................. 275,985
4,476,000 +Onpa International Public Co., Ltd. (Foreign)...... 397,110
45,800 +Sermsuk Public Co., Ltd. (Foreign)................. 232,193
------------
5,780,920
------------
IRELAND -- 2.82%
445,100 Irish Permanent plc................................. 5,417,753
------------
DENMARK -- 2.35%
39,800 Den Danske Bank..................................... 4,514,533
------------
PORTUGAL -- 2.28%
162,177 Banco Comercial Portugues S.A. ..................... 4,385,109
------------
</TABLE>
See Notes to Financial Statements
6
<PAGE>
EXCELSIOR FUNDS, INC.
PORTFOLIO OF INVESTMENTS SEPTEMBER 30, 1998 (UNAUDITED)
INTERNATIONAL FUND -- (CONTINUED)
<TABLE>
<CAPTION>
VALUE
SHARES (NOTE 1)
----------- ------------
<S> <C>
COMMON STOCKS -- (CONTINUED)
SINGAPORE -- 2.24%
1,281,300 Datacraft Asia, Ltd. ............................... $ 3,459,510
155,400 Singapore Airlines Ltd. (Foreign)................... 852,580
------------
4,312,090
------------
SPAIN -- 2.21%
396,295 Banco Bilbao Vizcaya S.A. (Registered).............. 4,244,422
------------
BRAZIL -- 0.98%
26,829 +Telebras ADR....................................... 1,889,768
------------
ARGENTINA -- 0.92%
67,828 YPF S.A. ADR........................................ 1,763,528
------------
SOUTH AFRICA -- 0.75%
311,800 Sasol Ltd. ......................................... 1,430,787
------------
CHILE -- 0.53%
47,880 Vina Concha Y Toro S.A. ADR......................... 1,023,435
------------
INDIA -- 0.42%
194,500 Mahindra & Mahindra Ltd. GDR........................ 797,450
------------
HUNGARY -- 0.32%
3,300 ++Gedeon Richter Rt. ............................... 99,000
17,280 Gedeon Richter Rt. GDR (Registered)................. 518,400
------------
617,400
------------
INDONESIA -- 0.32%
1,399,405 PT Tambang Timah (Foreign).......................... 617,190
------------
TURKEY -- 0.20%
62,650,000 Global Menkul Degerler A.S. ........................ 378,389
------------
MEXICO -- 0.12%
136,400 Sanluis Corporacion S.A. de C.V. ................... 227,623
------------
PHILIPPINES -- 0.05%
6,578,152 +Metro Pacific Corp. ............................... 92,245
------------
TOTAL COMMON STOCKS
(Cost $172,851,290)................................. 169,113,338
------------
</TABLE>
<TABLE>
<CAPTION>
NO. OF VALUE
WARRANTS (NOTE 1)
----------- ------------
<C> <S> <C>
WARRANTS -- 0.43%
PHILIPPINES -- 0.43%
3,908,400 +QueenBee Restaurants --
Jollibee Foods Corp.,
expiring 03/24/03 at $19.25 (Cost $1,529,872)...... $ 835,589
------------
<CAPTION>
PRINCIPAL
AMOUNT
-----------
<S> <C>
CONVERTIBLE BONDS--0.24%
PORTUGAL -- 0.24%
$ 4,500 Banco Comercial Portugues S.A., Series A
(Preferred)
8.00%, 12/31/2049
(Cost $524,610).................................... 454,500
------------
DEMAND NOTES -- 13.17%
UNITED STATES -- 13.17%
12,600,000 Associates Corp. of North America Master Notes..... 12,600,000
12,710,000 General Electric Co. Promissory Notes.............. 12,710,000
------------
TOTAL DEMAND NOTES
(Cost $25,310,000)................................. 25,310,000
------------
</TABLE>
<TABLE>
<S> <C> <C>
TOTAL INVESTMENTS
(Cost $200,215,772*)...................................... 101.85% $195,713,427
OTHER ASSETS & LIABILITIES (NET).......................... (1.85) (3,555,025)
------ ------------
NET ASSETS................................................ 100.00% $192,158,402
====== ============
</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,
1998 these securities amounted to $99,000 or 0.05% of net assets.
ADR-- American Depositary Receipt
GDR-- Global Depositary Receipt
See Notes to Financial Statements
7
<PAGE>
EXCELSIOR FUNDS, INC.
PORTFOLIO OF INVESTMENTS SEPTEMBER 30, 1998 (UNAUDITED)
INTERNATIONAL FUND -- (CONTINUED)
FORWARD FOREIGN CURRENCY CONTRACTS
Under the terms of forward foreign currency contracts open at 9/30/98,
the International Fund is obligated to deliver currency in exchange for
U.S. dollars as indicated below:
<TABLE>
<CAPTION>
CURRENCY IN NET
TO EXCHANGE SETTLEMENT UNREALIZED
DELIVER FOR DATE VALUE (DEPRECIATION)
----------------- ---------- ---------- ---------- --------------
<S> <C> <C> <C> <C> <C>
Sales...... JPY 1,079,120,000 $8,000,000 3/3/99 $8,078,300 $(78,300)
</TABLE>
--------
JPY -- Japanese Yen
At September 30, 1998, sector diversification of the Fund's investment
portfolio was as follows:
<TABLE>
<CAPTION>
% OF
NET MARKET
SECTOR DIVERSIFICATION ASSETS VALUE
---------------------- ------ ------------
<S> <C> <C>
Technology.............................................. 17.77% $ 34,141,740
Financial............................................... 17.12 32,893,035
Consumer Cyclical....................................... 17.06 32,786,225
Demand Notes............................................ 13.17 25,310,000
Consumer Staples........................................ 11.86 22,783,127
Transportation.......................................... 9.08 17,455,161
Energy.................................................. 8.65 16,612,598
Raw/Intermediate Materials.............................. 4.14 7,963,082
Capital Goods........................................... 3.00 5,768,459
------ ------------
Total Investments....................................... 101.85% $195,713,427
Other Assets and Liabilities (Net)...................... (1.85) (3,555,025)
------ ------------
Net Assets.............................................. 100.00% $192,158,402
====== ============
</TABLE>
See Notes to Financial Statements
8
<PAGE>
EXCELSIOR FUNDS, INC.
PORTFOLIO OF INVESTMENTS SEPTEMBER 30, 1998 (UNAUDITED)
PACIFIC/ASIA FUND
<TABLE>
<CAPTION>
VALUE
SHARES (NOTE 1)
---------- -----------
<S> <C>
COMMON STOCKS -- 95.60%
JAPAN -- 33.45%
17,430 AFLAC, Inc............................................ $ 497,844
21,500 Canon Inc............................................. 436,300
37,800 Credit Saison Co., Ltd................................ 731,077
1,100 Don Quijote Co., Ltd.................................. 70,916
3,000 +Fujitsu Support and Service Inc...................... 114,286
22,700 Meitec Corp........................................... 490,586
26,000 Miura Co., Ltd........................................ 314,286
190 NTT Data Corp......................................... 693,187
15,300 +Nu Skin Enterprises, Inc., Class A................... 168,300
8,000 Rohm Co............................................... 761,905
5,000 Ryohin Keikaku Co., Ltd............................... 505,495
5,900 Sony Corp. ........................................... 410,190
21,000 Taisho Pharmaceutical Co., Ltd........................ 441,538
63,400 Terumo Corp........................................... 1,302,835
-----------
6,938,745
-----------
KOREA -- 9.72%
119,950 Medison Co., Ltd...................................... 1,192,157
7,100 S1 Corp............................................... 823,263
-----------
2,015,420
-----------
SINGAPORE -- 9.40%
366,900 Datacraft Asia Ltd. .................................. 990,630
174,900 Singapore Airlines Ltd. (Foreign)..................... 959,564
-----------
1,950,194
-----------
AUSTRALIA -- 9.18%
52,462 Brambles Industries Ltd............................... 1,133,079
83,651 F.H. Faulding & Co., Ltd.............................. 331,801
20,543 Lend Lease Corp., Ltd................................. 438,477
-----------
1,903,357
-----------
THAILAND -- 9.17%
100,050 +Ayudhya Jardine CMG Life Assurance (Foreign)......... 38,042
130,067 +Banpu Public Co., Ltd. (Registered).................. 280,246
161,800 BEC World Public Co., Ltd. (Foreign).................. 771,062
211,300 Matichon Public Co., Ltd. (Foreign)................... 188,804
958,000 +Onpa International Public Co., Ltd. (Foreign)........ 84,994
70,700 +Sermsuk Public Co., Ltd. (Foreign)................... 358,428
</TABLE>
<TABLE>
<CAPTION>
VALUE
SHARES (NOTE 1)
---------- -----------
<C> <S> <C>
COMMON STOCKS -- (CONTINUED)
THAILAND -- (CONTINUED)
79,500 Thai Reinsurance Public Co., Ltd. (Foreign)........... $ 133,004
213,200 +Thai Stanley Electric Public Co., Ltd. (Foreign)..... 47,017
-----------
1,901,597
-----------
HONG KONG -- 8.82%
952,000 Cafe de Coral Holdings, Ltd........................... 297,949
313,900 Varitronix International Ltd.......................... 609,707
5,296,000 Yanzhou Coal Mining Co., Ltd.......................... 922,732
-----------
1,830,388
-----------
NEW ZEALAND -- 6.52%
1,080,000 Restaurant Brands New Zealand Ltd..................... 432,086
179,231 Telecom Corp. of New Zealand Ltd...................... 685,696
172,800 Tranz Rail Holdings Ltd. ............................. 234,191
-----------
1,351,973
-----------
PHILIPPINES -- 4.53%
265,000 Manila Electric Co., Class B.......................... 508,678
26,106 ++Manila Electric Co. GDR............................. 249,125
12,963,431 +Metro Pacific Corp................................... 181,786
-----------
939,589
-----------
INDONESIA -- 3.04%
1,429,187 PT Tambang Timah (Foreign)............................ 630,325
-----------
TAIWAN -- 1.77%
472,800 Want Want Holdings Ltd................................ 366,420
-----------
TOTAL COMMON STOCKS
(Cost $30,754,053).................................... 19,828,008
-----------
<CAPTION>
NO. OF
WARRANTS
----------
<C> <S> <C>
WARRANTS -- 1.32%
PHILIPPINES -- 1.32%
1,284,000 +QueenBee Restaurants --
Jollibee Foods Corp.,
expiring 03/24/03 at $19.25
(Cost $556,400)....................................... 274,510
-----------
</TABLE>
See Notes to Financial Statements
9
<PAGE>
EXCELSIOR FUNDS, INC.
PORTFOLIO OF INVESTMENTS SEPTEMBER 30, 1998 (UNAUDITED)
PACIFIC/ASIA FUND -- (CONTINUED)
<TABLE>
<CAPTION>
NO. OF VALUE
RIGHTS (NOTE 1)
---------- -----------
<S> <C>
RIGHTS -- 0.15%
KOREA -- 0.15%
10,909 x/+Medison Co., Ltd.
(Cost $0)........................................... $ 30,720
-----------
</TABLE>
<TABLE>
<S> <C> <C>
TOTAL INVESTMENTS
(Cost $31,310,453*)........................................ 97.07% $20,133,238
OTHER ASSETS & LIABILITIES (NET)........................... 2.93 607,099
------ -----------
NET ASSETS................................................. 100.00% $20,740,337
====== ===========
</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, 1998 these securities amounted to $249,125 or 1.20% of net assets.
x-- Security is valued at fair value. See Note 1 to financial statements.
GDR -- Global Depositary Receipt
FORWARD FOREIGN CURRENCY CONTRACTS
Under the terms of forward foreign currency contracts open at 9/30/98, the
Pacific/Asia Fund is obligated to deliver currency in exchange for U.S.
dollars as indicated below:
<TABLE>
<CAPTION>
CURRENCY IN NET
TO EXCHANGE SETTLEMENT UNREALIZED
DELIVER FOR DATE VALUE APPRECIATION
--------------- ---------- ---------- ---------- ------------
<S> <C> <C> <C> <C> <C>
Sales............ JPY 399,315,000 $3,000,000 3/3/99 $2,989,275 $10,725
</TABLE>
- --------
JPY -- Japanese Yen
At September 30, 1998, sector diversification of the Fund's investment
portfolio was as follows:
<TABLE>
<CAPTION>
% OF
NET MARKET
SECTOR DIVERSIFICATION ASSETS VALUE
---------------------- ------ -----------
<S> <C> <C>
Technology............................................... 24.55% $ 5,090,669
Consumer Staples......................................... 17.07 3,541,782
Consumer Cyclical........................................ 16.88 3,501,405
Transportation........................................... 10.09 2,092,644
Financial................................................ 9.74 2,020,230
Raw/Intermediate Materials............................... 8.84 1,833,303
Utilities................................................ 6.96 1,443,498
Capital Goods............................................ 2.94 609,707
------ -----------
Total Investments........................................ 97.07% $20,133,238
Other Assets and Liabilities (Net)....................... 2.93 607,099
------ -----------
Net Assets............................................... 100.00% $20,740,337
====== ===========
</TABLE>
See Notes to Financial Statements
10
<PAGE>
EXCELSIOR FUNDS, INC.
PORTFOLIO OF INVESTMENTS SEPTEMBER 30, 1998 (UNAUDITED)
PAN EUROPEAN FUND
<TABLE>
<CAPTION>
VALUE
SHARES (NOTE 1)
----------- ------------
<S> <C>
COMMON STOCKS -- 91.63%
FRANCE -- 18.07%
55,389 AXA................................................. $ 5,075,297
9,773 Carrefour S.A. ..................................... 6,198,679
186,680 Dassault Systemes S.A. ............................. 7,068,939
53,242 Elf Aquitaine S.A. ................................. 6,571,325
62,350 +ST Microelectronics N.V. .......................... 2,895,545
37,473 Total S.A., Class B................................. 4,725,456
------------
32,535,241
------------
UNITED KINGDOM & POSSESSIONS -- 13.53%
639,950 Airtours plc........................................ 3,861,214
604,800 Capita Group plc.................................... 6,229,223
222,233 Granada Group plc................................... 2,795,051
388,000 Serco Group plc..................................... 6,996,754
1,387,396 Siebe plc........................................... 4,480,263
------------
24,362,505
------------
GERMANY -- 10.48%
166,689 GEA AG.............................................. 5,621,535
12,180 SAP AG.............................................. 5,428,250
33,650 SGL Carbon AG....................................... 2,358,362
7,806 Sartorius AG........................................ 2,291,206
57,880 Siemens AG.......................................... 3,165,475
------------
18,864,828
------------
SWITZERLAND -- 8.32%
237 Lindt & Spruengli AG................................ 5,665,749
4,102 Novartis AG (Registered)............................ 6,593,986
252 Roche Holding AG.................................... 2,720,081
------------
14,979,816
------------
NETHERLANDS -- 7.59%
99,642 ING Groep N.V. ..................................... 4,491,667
115,097 Koninklijke Ahrend Groep N.V. ...................... 2,138,895
36,619 Wolters Kluwer N.V. ................................ 7,032,544
------------
13,663,106
------------
IRELAND -- 7.31%
448,336 Irish Continental Group plc......................... 5,557,580
513,800 Irish Permanent plc................................. 6,253,969
414,500 IWP International plc............................... 1,361,919
------------
13,173,468
------------
</TABLE>
<TABLE>
<CAPTION>
VALUE
SHARES (NOTE 1)
----------- ------------
<S> <C>
COMMON STOCKS -- (CONTINUED)
SPAIN -- 6.95%
440,500 +Banco Bilbao Vizcaya S.A., (Registered)............ $ 4,717,869
628,425 Prosegur Cia de Seguridad S.A. (Registered)......... 7,793,320
------------
12,511,189
------------
ITALY -- 6.02%
840,500 Edison S.p.A. ...................................... 6,396,050
1,382,040 Telecom Italia S.p.A. .............................. 4,446,308
------------
10,842,358
------------
SWEDEN -- 4.74%
78,500 Autoliv AB.......................................... 2,158,750
337,511 Celsius AB, Series B................................ 6,373,820
------------
8,532,570
------------
PORTUGAL -- 3.17%
210,974 Banco Comercial Portugues S.A. ..................... 5,704,532
------------
DENMARK -- 2.68%
42,636 Den Danske Bank..................................... 4,836,222
------------
TURKEY -- 1.11%
108,200,000 Global Menkul Degerler A.S. ........................ 653,500
140,670,034 +Medya Holding...................................... 824,248
32,566,875 Turk Sise ve Cam Fabrikalari A.S. .................. 522,564
------------
2,000,312
------------
CROATIA -- 1.02%
103,850 ++Pliva d.d. GDR.................................... 1,386,626
36,900 Pliva d.d. GDR (Registered)......................... 458,482
------------
1,845,108
------------
HUNGARY -- 0.64%
4,700 ++Gedeon Richter Rt. ............................... 140,413
33,800 Gedeon Richter Rt. GDR (Registered)................. 1,009,775
------------
1,150,188
------------
TOTAL COMMON STOCKS (Cost $148,231,457)............. 165,001,443
------------
</TABLE>
See Notes to Financial Statements
11
<PAGE>
EXCELSIOR FUNDS, INC.
PORTFOLIO OF INVESTMENTS SEPTEMBER 30, 1998 (UNAUDITED)
PAN EUROPEAN FUND -- (CONTINUED)
<TABLE>
<CAPTION>
VALUE
SHARES (NOTE 1)
----------- ------------
<S> <C>
PREFERRED STOCKS -- 4.43%
PORTUGAL -- 3.25%
455,800 Lusomundo S.A. .................................... $ 5,858,612
------------
GERMANY -- 1.18%
6,534 SAP AG-VORZUG...................................... 2,113,550
------------
TOTAL PREFERRED STOCKS (Cost $7,795,872)........... 7,972,162
------------
<CAPTION>
PRINCIPAL
AMOUNT
-----------
<C> <S> <C>
CONVERTIBLE BOND -- 0.41%
PORTUGAL -- 0.41%
$ 7,400 Banco Comercial Portugues S.A., Series A
(Preferred)
8.00%, 12/31/2049
(Cost $862,100).................................... 747,400
------------
</TABLE>
<TABLE>
<CAPTION>
PRINCIPAL VALUE
AMOUNT (NOTE 1)
----------- ------------
<S> <C>
DEMAND NOTES -- 2.55%
UNITED STATES -- 2.55%
$ 2,200,000 Associates Corp. of North America Master Notes...... $ 2,200,000
2,391,000 General Electric Co. Promissory Notes............... 2,391,000
------------
TOTAL DEMAND NOTES
(Cost $4,591,000)................................... 4,591,000
------------
</TABLE>
<TABLE>
<S> <C> <C>
TOTAL INVESTMENTS
(Cost $161,480,429*)...................................... 99.02% $178,312,005
OTHER ASSETS & LIABILITIES (NET).......................... 0.98 1,764,044
------ ------------
NET ASSETS................................................ 100.00% $180,076,049
====== ============
</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, 1998 these securities amounted to $1,527,039 or 0.85% of
net assets.
GDR -- Global Depositary Receipt
At September 30, 1998, 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....................................... 29.54% $ 53,196,789
Consumer Staples........................................ 18.65 33,591,386
Financial............................................... 18.04 32,480,456
Technology.............................................. 8.81 15,863,351
Holding Company Diversified............................. 6.50 11,700,561
Energy.................................................. 6.27 11,296,781
Capital Goods........................................... 4.88 8,787,010
Demand Notes............................................ 2.55 4,591,000
Utilities............................................... 2.47 4,446,309
Raw/Intermediate Materials.............................. 1.31 2,358,362
------ ------------
Total Investments....................................... 99.02% $178,312,005
Other Assets and Liabilities (Net)...................... 0.98 1,764,044
------ ------------
Net Assets.............................................. 100.00% $180,076,049
====== ============
</TABLE>
See Notes to Financial Statements
12
<PAGE>
EXCELSIOR FUNDS, INC.
PORTFOLIO OF INVESTMENTS SEPTEMBER 30, 1998 (UNAUDITED)
LATIN AMERICA FUND
<TABLE>
<CAPTION>
VALUE
SHARES (NOTE 1)
------------- -----------
<S> <C>
COMMON STOCKS -- 77.31%
MEXICO -- 32.34%
2,772,500 +Biper S.A. de C.V., Series B..................... $ 506,219
353,082 Cemex S.A., CPO................................... 776,385
348,593 +Corporacion GEO S.A., Class B.................... 653,591
575,000 Corporacion Moctezuma S.A. de C.V., Series B2..... 496,711
35,518 Fomento Economico Mexicano S.A. de C.V., Series
B................................................. 697,041
330,500 Grupo Continental S.A. ........................... 875,969
1,443,600 Grupo Elektra S.A. de C.V. CPO.................... 538,498
80,100 +Grupo Televisa S.A. CPO.......................... 774,502
251,645 +Industrias CH S.A., Series B..................... 533,575
268,300 Industrias Penoles S.A. .......................... 816,462
317,800 Organizacion Soriana S.A. de C.V., Series B....... 764,317
280,800 Sanluis Corporacion S.A. de C.V. ................. 468,597
73,000 Tubos de Acero de Mexico S.A. .................... 515,952
77,100 TV Azteca S.A. de C.V. ADR........................ 505,969
-----------
8,923,788
-----------
BRAZIL -- 29.19%
65,600 CBD Grupo Pao de Acucar ADR....................... 856,900
15,767 Cemig ADR......................................... 348,665
1,888,559,000 +CERJ............................................. 669,137
71,900 Cia Vale do Rio Doce.............................. 770,314
138,300 Copel ADR......................................... 881,662
77,711,400 +Embratel Participacoes S.A. ..................... 3,343,413
77,711,400 +Telebras......................................... --
77,711,400 +Tele Celular Sul Participacoes S.A. ............. --
77,711,400 +Tele Centro Oeste Celular Participacoes S.A. .... --
77,711,400 +Tele Centro Sul Participacoes S.A. .............. --
77,711,400 +Tele Leste Celular Participacoes S.A. ........... --
77,711,400 +Telemig Celular Participacoes S.A. .............. --
77,711,400 +Tele Nordeste Celular Participacoes S.A. ........ --
</TABLE>
<TABLE>
<CAPTION>
VALUE
SHARES (NOTE 1)
------------- -----------
<S> <C>
COMMON STOCKS -- (CONTINUED)
BRAZIL -- (CONTINUED)
77,711,400 +Tele Norte Celular Participacoes S.A. ............ --
77,711,400 +Tele Norte Leste Participacoes S.A. .............. --
77,711,400 +Tele Sudeste Celular Participacoes S.A. .......... --
9,348,600 +Telesp............................................ $ 906,942
77,711,400 +Telesp Celular Participacoes S.A. ................ --
11,056,000 +Telesp Celular S.A................................ 275,328
77,711,400 +Telesp Participacoes S.A.......................... --
-----------
8,052,361
-----------
ARGENTINA -- 6.34%
202,715 Banco de Galicia y Buenos Aires S.A., Class B...... 796,790
36,683 YPF S.A. ADR....................................... 953,758
-----------
1,750,548
-----------
CHILE -- 4.84%
129,660 Linea Aerea Nacional Chile S.A. ADR................ 445,706
41,609 Vina Concha y Toro S.A. ADR........................ 889,392
-----------
1,335,098
-----------
PERU -- 3.26%
2,256 Credicorp Ltd. .................................... 16,498
727,963 Minsur S.A. ....................................... 882,235
-----------
898,733
-----------
VENEZUELA -- 1.34%
60,466 Siderurgica Venezolana Sivensa ADR................. 369,834
-----------
TOTAL COMMON STOCKS (Cost $42,898,211)............. 21,330,362
-----------
PREFERRED STOCKS -- 17.45%
BRAZIL -- 17.45%
1,823,400 CELESC............................................. 830,636
25,992,874 Cemig.............................................. 565,730
17,784 Cia Vale do Rio Doce............................... 262,544
470,454,000 Coelce............................................. 654,842
19,397,000 Copel.............................................. 127,633
139,449,700 Gerdau S.A......................................... 1,211,686
</TABLE>
See Notes to Financial Statements
13
<PAGE>
EXCELSIOR FUNDS, INC.
PORTFOLIO OF INVESTMENTS SEPTEMBER 30, 1998 (UNAUDITED)
LATIN AMERICA FUND -- (CONTINUED)
<TABLE>
<CAPTION>
VALUE
SHARES (NOTE 1)
------------- -----------
<S> <C>
PREFERRED STOCKS -- (CONTINUED)
BRAZIL -- (CONTINUED)
11,281,599 Petrobras.......................................... $ 1,160,994
-----------
TOTAL PREFERRED STOCKS (Cost $11,160,483).......... 4,814,065
-----------
<CAPTION>
NO. OF
RIGHTS
-------------
<S> <C>
RIGHTS -- 0.00%
BRAZIL -- 0.00%
40,607 x/ +Cia Riograndense de Telecomunicacoes
(Cost $0)........................................ 715
-----------
</TABLE>
<TABLE>
<CAPTION>
PRINCIPAL VALUE
AMOUNT (NOTE 1)
------------- -----------
<S> <C>
CONVERTIBLE BONDS -- 0.00%
BRAZIL -- 0.00%
$ 45,600 Cia Vale do Rio Doce
Zero Coupon, 07/01/06
(Cost $230)....................................... --
-----------
DEMAND NOTES -- 3.96%
UNITED STATES -- 3.96%
1,091,000 General Electric Co. Promissory Notes
(Cost $1,091,000)................................. $ 1,091,000
-----------
</TABLE>
<TABLE>
<S> <C> <C>
TOTAL INVESTMENTS (Cost $55,149,924*)...................... 98.72% $27,236,142
OTHER ASSETS & LIABILITIES (NET)........................... 1.28 353,520
------ -----------
NET ASSETS................................................. 100.00% $27,589,662
====== ===========
</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
At September 30, 1998, 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........................................ 20.61% $ 5,686,821
Utilities................................................ 18.99 5,239,299
Raw/Intermediate Materials............................... 18.49 5,100,058
Technology............................................... 18.24 5,032,616
Consumer Staples......................................... 12.03 3,319,302
Demand Notes............................................. 3.95 1,091,000
Energy................................................... 3.46 953,758
Financial................................................ 2.95 813,288
------ -----------
Total Investments........................................ 98.72% $27,236,142
Other Assets and Liabilities (Net)....................... 1.28 353,520
------ -----------
Net Assets............................................... 100.00% $27,589,662
====== ===========
</TABLE>
See Notes to Financial Statements
14
<PAGE>
EXCELSIOR FUNDS, INC.
PORTFOLIO OF INVESTMENTS SEPTEMBER 30, 1998 (UNAUDITED)
EMERGING MARKETS FUND
<TABLE>
<CAPTION>
VALUE
SHARES (NOTE 1)
---------- ----------
<S> <C>
COMMON STOCKS -- 59.00%
BRAZIL -- 13.46%
8,200 CBD Grupo Pao de Acucar ADR............................ $ 107,112
9,277,400 Cemig.................................................. 133,049
12,990 Cia Vale do Rio Doce................................... 139,171
5,510,000 +Embratel Participacoes S.A. .......................... 237,059
5,510,000 +Telebras.............................................. --
5,510,000 +Tele Celular Sul Participacoes S.A. .................. --
5,510,000 +Tele Centro Oeste Celular Participacoes S.A. ......... --
5,510,000 +Tele Centro Sul Participacoes S.A. ................... --
5,510,000 +Tele Leste Celular Participacoes S.A. ................ --
5,510,000 +Telemig Celular Participacoes S.A. ................... --
5,510,000 +Tele Nordeste Celular Participacoes S.A. ............. --
5,510,000 +Tele Norte Celular Participacoes S.A. ................ --
5,510,000 +Tele Norte Leste Participacoes S.A. .................. --
5,510,000 +Tele Sudeste Celular Participacoes S.A. .............. --
1,098,000 +Telesp................................................ 106,521
5,510,000 +Telesp Celular Participacoes S.A. .................... --
1,098,000 +Telesp Celular S.A. .................................. 27,343
5,510,000 +Telesp Participacoes S.A. ............................ --
----------
750,255
----------
MEXICO -- 11.82%
314,000 +Biper S.A. de C.V., Series B.......................... 57,332
67,300 Cifra S.A. de C.V., Series V........................... 81,920
6,080 Fomento Economico Mexicano S.A. de C.V., Series B...... 119,320
47,200 Grupo Continental S.A. ................................ 125,101
139,900 Grupo Elektra S.A. de C.V. CPO......................... 52,186
5,810 +Grupo Televisa S.A. GDR............................... 112,206
2,500 Telefonos de Mexico S.A., Class L ADR.................. 110,625
----------
658,690
----------
HUNGARY -- 6.06%
2,015 Gedeon Richter Rt. GDR (Registered).................... 60,450
4,000 ++MOL Magyar Olaj-es Gazipari Rt. GDR.................. 77,584
2,600 OPT Bank Rt. .......................................... 73,813
3,550 Pannonplast Rt. ....................................... 81,277
</TABLE>
<TABLE>
<CAPTION>
VALUE
SHARES (NOTE 1)
---------- ----------
<S> <C>
COMMON STOCKS -- (CONTINUED)
HUNGARY -- (CONTINUED)
21,670 Zalakeramia Rt. GDR.................................... $ 44,965
----------
338,089
----------
ARGENTINA -- 5.26%
25,285 Banco de Galicia y Buenos Aires S.A., Class B.......... 99,385
3,700 Telecom Argentina Stet-France Telecom S.A. ADR......... 109,844
3,240 YPF S.A. ADR........................................... 84,240
----------
293,469
----------
PERU -- 4.53%
25,000 Cia de Minas Buenaventura S.A., Class T................ 157,304
78,690 Minsur S.A. ........................................... 95,366
----------
252,670
----------
SOUTH AFRICA -- 3.94%
138,690 Metro Cash & Carry Ltd. ............................... 69,428
9,959 South African Breweries Ltd. .......................... 150,241
----------
219,669
----------
CHILE -- 3.07%
13,600 Linea Aerea Nacional Chile SP ADR...................... 46,750
5,816 Vina Concha y Toro S.A. ADR............................ 124,317
----------
171,067
----------
TURKEY -- 2.70%
28,000 ++Akbank T.A.S. ADR.................................... 76,300
12,300,000 Global Menkul Degerler A.S. ........................... 74,289
----------
150,589
----------
KOREA -- 1.96%
15,500 SK Telecom Co. Ltd. ADR................................ 109,469
----------
HONG KONG -- 1.94%
3,600 +China Telecom (Hong Kong) Ltd. ADR.................... 108,000
----------
MALAYSIA -- 1.92%
53,200 O.Y.L. Industries Bhd. ................................ 107,100
----------
INDIA -- 1.68%
22,800 Mahindra & Mahindra Ltd. GDR........................... 93,480
----------
CZECH REPUBLIC -- 0.66%
5,550 +CKD Praha Holding A.S. ............................... 36,897
----------
TOTAL COMMON STOCKS
(Cost $5,981,822)...................................... 3,289,444
----------
</TABLE>
See Notes to Financial Statements
15
<PAGE>
EXCELSIOR FUNDS, INC.
PORTFOLIO OF INVESTMENTS SEPTEMBER 30, 1998 (UNAUDITED)
EMERGING MARKETS FUND -- (CONTINUED)
<TABLE>
<CAPTION>
VALUE
SHARES (NOTE 1)
---------- ----------
<S> <C>
PREFERRED STOCKS -- 9.90%
BRAZIL -- 9.90%
7,000 Cia Vale do Rio Doce.................................. $ 103,341
70,184,000 Coelce................................................ 97,692
15,658,000 Copel................................................. 103,031
12,868,000 Gerdau S.A. .......................................... 111,811
1,323,000 Petrobras............................................. 136,150
----------
TOTAL PREFERRED STOCKS
(Cost $1,098,397)..................................... 552,025
----------
<CAPTION>
PRINCIPAL
AMOUNT
----------
<S> <C>
CONVERTIBLE BONDS -- 2.35%
POLAND -- 2.35%
$ 214,000 Elektrim S.A., 2.00%, 05/30/04
(Cost $135,424)....................................... 130,753
----------
U.S. GOVERNMENT OBLIGATIONS -- 35.58%
2,000,000 U.S. Treasury Bill, 4.14%, 12/10/98 (Cost
$1,983,900)........................................... 1,983,900
----------
</TABLE>
<TABLE>
<CAPTION>
PRINCIPAL VALUE
AMOUNT (NOTE 1)
---------- ----------
<C> <S> <C>
REPURCHASE AGREEMENT -- 5.86%
UNITED STATES -- 5.86%
$ 327,000 Agreement with Chase Securities, Inc. Government
Dealership 5.25%, dated 09/30/98, due 10/01/98, to be
repurchased at $327,048 collateralized by $280,000
U.S. Treasury Notes 7.875%, due 11/15/04, valued at
$340,522 (Cost $327,000).............................. $ 327,000
----------
</TABLE>
<TABLE>
<S> <C> <C>
TOTAL INVESTMENTS (Cost $9,526,543*)........................ 112.69% $6,283,122
OTHER ASSETS & LIABILITIES (NET)............................ (12.69) (707,492)
------ ----------
NET ASSETS.................................................. 100.00% $5,575,630
====== ==========
</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, 1998 these securities amounted to $153,884 or 2.76% of net assets.
ADR -- American Depositary Receipt
GDR -- Global Depositary Receipt
At September 30, 1998, sector diversification of the Fund's investment
portfolio was as follows:
<TABLE>
<CAPTION>
% OF
NET MARKET
SECTOR DIVERSIFICATION ASSETS VALUE
---------------------- ------ ----------
<S> <C> <C>
U.S. Treasury Obligations................................. 35.58% $1,983,900
Utilities................................................. 14.22 792,993
Consumer Staples.......................................... 13.95 777,439
Technology................................................ 10.73 598,175
Raw/Intermediate Materials................................ 10.49 584,929
Consumer Cyclical......................................... 8.12 452,928
Repurchase Agreements..................................... 5.86 327,000
Financial................................................. 5.81 323,787
Energy.................................................... 5.35 297,974
Holding Company Diversified............................... 1.92 107,100
Capital Goods............................................. 0.66 36,897
------ ----------
Total Investments......................................... 112.69% $6,283,122
Other Assets and Liabilities (Net)........................ (12.69) (707,492)
------ ----------
Net Assets................................................ 100.00% $5,575,630
====== ==========
</TABLE>
See Notes to Financial Statements
16
<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 eighteen 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, Latin America Fund and Emerging
Markets 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
17
<PAGE>
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 not less than the repurchase price.
If the value of the underlying security falls below the value of the
repurchase price, 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 net capital losses incurred after
October 31 and within the taxable year ("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.
18
<PAGE>
(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, 1998, the Pacific/Asia Fund had a capital loss carryforward
for Federal tax purposes available to offset net capital gains of
approximately $4,966,000 which will expire on March 31, 2006.
At September 30, 1998, 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................ $24,584,010 $(29,086,355) $ (4,502,345)
Pacific/Asia Fund................. 1,501,180 (12,678,395) (11,177,215)
Pan European Fund................. 32,384,224 (15,552,648) 16,831,576
Latin America Fund................ 1,858,487 (29,772,269) (27,913,782)
Emerging Markets Fund............. 155,221 (3,398,642) (3,243,421)
</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 NY") and U.S. Trust
Company of Connecticut ("U.S. Trust CT" and, collectively with U.S. Trust NY,
"U.S. Trust") serve as the investment adviser to the Portfolios. 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
rate of 1% of the average daily net assets of each of the International Fund,
Pacific/Asia Fund, Pan European Fund and Latin America Fund and 1.25% of the
average daily net assets of the Emerging Markets Fund. U.S. Trust NY and U.S.
Trust CT are wholly-owned subsidiaries of U.S. Trust Corporation, a registered
bank holding company.
U.S. Trust CT, Chase Global Funds Services Company, a corporate affiliate 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 annual rate of
.20% of the average daily net assets of each Portfolio. For the six months
ended September 30, 1998, administration fees charged by U.S. Trust CT were as
follows:
<TABLE>
<S> <C>
International Fund................................................... $91,076
Pacific/Asia Fund.................................................... 13,289
Pan European Fund.................................................... 94,374
Latin America Fund................................................... 26,714
Emerging Markets Fund................................................ 2,596
</TABLE>
19
<PAGE>
From time to time, as they may deem appropriate in their sole discretion,
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. 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 Latin America Fund to maintain an
annual expense ratio of not more than 1.67% and for Emerging Markets Fund to
maintain an annual expense ratio of not more than 1.65%. For the six months
ended September 30, 1998, U.S. Trust voluntarily waived investment advisory
fees totaling $17,808 for Emerging Markets 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 organization's 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.
Administrative services fees paid to affiliates of U.S. Trust amounted to
$219,326 for the six months ended September 30, 1998. 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 (including fees
paid to affiliates of U.S. Trust) by such Portfolio. For the six months ended
September 30, 1998, 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................................. $101,286 $ 198
Pacific/Asia Fund.................................. 15,853 61
Pan European Fund.................................. 84,341 1,941
Latin America Fund................................. 32,713 723
Emerging Markets Fund.............................. 4,579 --
</TABLE>
Edgewood Services, Inc. (the "Distributor"), a wholly-owned subsidiary of
Federated Investors, Inc., serves as the sponsor and distributor of Excelsior
Fund.
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.
20
<PAGE>
3. PURCHASES AND SALES OF SECURITIES:
For the six months ended September 30, 1998, purchases and sales of
securities, excluding short-term investments, for the Portfolios aggregated:
<TABLE>
<CAPTION>
PURCHASES SALES
----------- -----------
<S> <C> <C>
International Fund................................... $31,578,589 $16,401,170
Pacific/Asia Fund.................................... 6,085,115 16,995,337
Pan European Fund.................................... 38,609,056 28,884,498
Latin America Fund................................... 3,832,711 22,399,052
Emerging Markets Fund................................ 1,758,737 147,269
</TABLE>
4. COMMON STOCK:
Excelsior Fund has authorized capital of 35 billion shares of Common Stock,
23.875 billion of which is currently classified to represent interests in one
of eighteen separate investment portfolios. Authorized capital currently
classified for each Portfolio is as follows: 375 million shares of the
International Fund and 500 million shares each of the Pacific/Asia Fund, Pan
European Fund, Latin America Fund and Emerging Markets Fund.
Each share 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
09/30/98 03/31/98
------------------------ ------------------------
SHARES AMOUNT SHARES AMOUNT
---------- ------------ ---------- ------------
<S> <C> <C> <C> <C>
Sold...................... 5,881,356 $ 72,329,850 7,823,402 $ 94,783,126
Issued as reinvestment of
dividends................ 7,975 102,647 64,967 759,358
Redeemed.................. (3,702,922) (43,375,676) (3,307,934) (40,179,061)
---------- ------------ ---------- ------------
Net Increase.............. 2,186,409 $ 29,056,821 4,580,435 $ 55,363,423
========== ============ ========== ============
<CAPTION>
PACIFIC / ASIA FUND
--------------------------------------------------
SIX MONTHS ENDED YEAR ENDED
09/30/98 03/31/98
------------------------ ------------------------
SHARES AMOUNT SHARES AMOUNT
---------- ------------ ---------- ------------
<S> <C> <C> <C> <C>
Sold...................... 3,146,355 $ 16,572,339 5,372,797 $ 42,386,787
Issued as reinvestment of
dividends................ 14,625 77,077 4,692 29,609
Redeemed.................. (5,543,647) (28,944,796) (8,555,731) (62,916,933)
---------- ------------ ---------- ------------
Net Decrease.............. (2,382,667) $(12,295,380) (3,178,242) $(20,500,537)
========== ============ ========== ============
</TABLE>
21
<PAGE>
<TABLE>
<CAPTION>
PAN EUROPEAN FUND
---------------------------------------------------
SIX MONTHS ENDED YEAR ENDED
09/30/98 03/31/98
-------------------------- -----------------------
SHARES AMOUNT SHARES AMOUNT
----------- ------------- ---------- -----------
<S> <C> <C> <C> <C>
Sold..................... 11,167,558 $ 156,437,855 7,208,623 $85,852,102
Issued as reinvestment of
dividends............... -- -- 73,319 865,174
Redeemed................. (10,920,485) (151,004,692) (3,738,354) (45,563,629)
----------- ------------- ---------- -----------
Net Increase............. 247,073 $ 5,433,163 3,543,588 $41,153,647
=========== ============= ========== ===========
</TABLE>
<TABLE>
<CAPTION>
LATIN AMERICA FUND
--------------------------------------------------
SIX MONTHS ENDED YEAR ENDED
09/30/98 03/31/98
------------------------ ------------------------
SHARES AMOUNT SHARES AMOUNT
---------- ------------ ---------- ------------
<S> <C> <C> <C> <C>
Sold...................... 2,570,075 $ 19,849,776 5,336,432 $ 59,019,030
Issued as reinvestment of
dividends................ 6,087 52,957 18,526 193,175
Redeemed.................. (5,567,473) (39,849,278) (4,486,834) (47,994,494)
---------- ------------ ---------- ------------
Net Increase (Decrease)... (2,991,311) $(19,946,545) 868,124 $ 11,217,711
========== ============ ========== ============
<CAPTION>
EMERGING MARKETS FUND
--------------------------------------------------
SIX MONTHS ENDED YEAR ENDED
09/30/98 03/31/98*
------------------------ ------------------------
SHARES AMOUNT SHARES AMOUNT
---------- ------------ ---------- ------------
<S> <C> <C> <C> <C>
Sold...................... 773,216 $ 3,783,909 935,051 $ 6,348,553
Issued as reinvestment of
dividends................ 19 110 -- --
Redeemed.................. (214,639) (1,154,001) (1,227) (8,663)
---------- ------------ ---------- ------------
Net Increase.............. 558,596 $ 2,630,018 933,824 $ 6,339,890
========== ============ ========== ============
</TABLE>
- --------
* For the period 01/02/98 (commencement of operations) through 03/31/98.
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.
6. LINE OF CREDIT:
The Portfolios and other affiliated funds participate in a $250 million
unsecured line of credit provided by a syndication of banks under a line of
credit agreement. Borrowings may be made to temporarily finance the repurchase
of Portfolio shares. Interest is charged to each Portfolio, based on its
borrowings, at a rate equal to the Federal Funds Rate plus 2% per year. In
addition, a commitment fee, based on the average daily unused portion of the
line of credit, is allocated among the participating Portfolios at the end of
each quarter. For the six months ended September 30, 1998, the Portfolios had
no borrowings under the agreement.
22
