<PAGE>
--------------------------------------------------------------------------------
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[LOGO OF EXCELSIOR FUNDS]
International Equity Portfolios
SEMI-ANNUAL REPORT
September 30, 2000
<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
Latin America Fund....................................................... 9
Pacific/Asia Fund........................................................ 11
Pan European Fund........................................................ 14
Emerging Markets Fund.................................................... 17
NOTES TO FINANCIAL STATEMENTS............................................. 20
</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 (From overseas, call 617-557-8280)
. Current Price and Yield Information 1-800-446-1012
. Internet Address: http://www.excelsiorfunds.com
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 distributed by
Edgewood Services, Inc.
You may write to Excelsior Funds, Inc. and Excelsior Tax-Exempt Funds, Inc. at
the following address:
Excelsior Funds
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, 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, 2000 (Unaudited)
<TABLE>
<CAPTION>
Latin Pan Emerging
International America Pacific/Asia European Markets
Fund Fund Fund Fund Fund
------------- ----------- ------------ ------------ -----------
<S> <C> <C> <C> <C> <C>
ASSETS:
Investments, at cost --
see accompanying
portfolios............... $366,515,616 $15,669,520 $67,170,415 $134,840,892 $10,929,143
============ =========== =========== ============ ===========
Investments, at value
(Note 1)................. $434,110,616 $18,307,699 $64,606,476 $157,901,480 $11,685,819
Foreign currency (cost
$6,926, $0, $334,127, $0,
and $263, respectively).. 6,797 -- 334,223 -- 240
Cash...................... -- 2,205 -- -- 1,004
Dividends receivable...... 284,679 32,184 39,376 123,661 10,446
Interest receivable....... 147,772 5,085 1,463 9,733 578
Receivable for investments
sold..................... 5,339,076 -- 1,031,270 6,277,865 --
Receivable for fund shares
sold..................... 786,215 500 48,940 158,326 1,497
Withholding tax
receivable............... 99,121 -- -- 77,245 --
Prepaid expenses.......... 5,099 252 1,227 2,166 136
Unamortized organization
costs (Note 5)........... -- -- -- -- 17,635
------------ ----------- ----------- ------------ -----------
Total Assets............. 440,779,375 18,347,925 66,062,975 164,550,476 11,717,355
LIABILITIES:
Payable for investments
purchased................ -- -- 853,101 2,012,625 --
Payable for fund shares
redeemed................. 6,210,009 4,143 123,155 1,450,571 --
Investment advisory fees
payable (Note 2)......... 378,741 22,574 49,963 122,830 13,121
Administration fees
payable (Note 2)......... 74,336 3,028 9,781 35,647 2,026
Administration servicing
fees payable (Note 2).... 760 4,657 14,297 22,256 1,828
Directors' fees payable
(Note 2)................. 694 4,688 91 350 52
Foreign taxes payable..... 74,841 -- -- -- 2,019
Due to custodian bank..... 5,337,039 -- 1,028,399 3,602,534 --
Accrued expenses and other
payables................. 80,301 4,737 19,513 24,506 44,715
------------ ----------- ----------- ------------ -----------
Total Liabilities........ 12,156,721 43,827 2,098,300 7,271,319 63,761
------------ ----------- ----------- ------------ -----------
NET ASSETS................. $428,622,654 $18,304,098 $63,964,675 $157,279,157 $11,653,594
============ =========== =========== ============ ===========
NET ASSETS consist of:
Distributions in excess of
net investment income.... $ (411,479) $ (17,241) $ (455,463) $ (246,740) $ (36,187)
Accumulated net realized
gain (loss) on
investments and foreign
currency translations.... 19,172,573 (30,728,885) (8,653,824) 13,374,786 (2,983,930)
Unrealized
appreciation/depreciation
of investments and
foreign currency
translations............. 67,516,196 2,637,238 (2,564,383) 23,060,732 756,442
Par value (Note 4)........ 25,713 3,006 7,089 12,289 2,210
Paid-in capital in excess
of par value............. 342,319,651 46,409,980 75,631,256 121,078,090 13,915,059
------------ ----------- ----------- ------------ -----------
Total Net Assets........... $428,622,654 $18,304,098 $63,964,675 $157,279,157 $11,653,594
============ =========== =========== ============ ===========
Shares of Common Stock
Outstanding (Note 4)...... 25,713,500 3,006,429 7,089,138 12,288,530 2,209,564
NET ASSET VALUE PER SHARE.. $16.67 $6.09 $9.02 $12.80 $5.27
====== ===== ===== ====== =====
</TABLE>
See Notes to Financial Statements
1
<PAGE>
Excelsior Funds, Inc.
Statements of Operations
Six Months Ended September 30, 2000 (Unaudited)
<TABLE>
<CAPTION>
Latin Pan Emerging
International America Pacific/Asia European Markets
Fund Fund Fund Fund Fund
------------- ----------- ------------ ------------ -----------
<S> <C> <C> <C> <C> <C>
INVESTMENT INCOME:
Dividend income........... $ 2,490,623 $ 137,458 $ 412,706 $ 1,345,246 $ 56,832
Interest income........... 702,184 34,481 28,172 121,320 28,103
Less: Foreign taxes
withheld................. (219,068) (831) (39,071) (135,322) (2,311)
------------ ----------- ------------ ------------ -----------
Total Income............. 2,973,739 171,108 401,807 1,331,244 82,624
EXPENSES:
Investment advisory fees
(Note 2)................. 2,251,483 100,341 375,407 883,392 87,101
Administration fees (Note
2)....................... 450,297 20,068 75,081 176,678 13,936
Custodian fees............ 338,768 16,391 56,496 132,509 11,921
Administrative servicing
fees (Note 2)............ 215,018 16,829 50,037 73,054 5,108
Shareholder servicing
agent fees............... 26,452 16,749 24,240 32,736 5,810
Legal and audit fees...... 18,505 834 3,247 6,843 744
Shareholder reports....... 14,061 686 3,657 6,671 597
Registration and filing
fees..................... 10,495 6,349 17,039 7,653 6,421
Directors' fees and
expenses (Note 2)........ 3,867 197 765 1,369 135
Amortization of
organization costs (Note
5)....................... -- -- -- -- 3,933
Miscellaneous expenses.... 20,624 1,188 6,374 4,510 1,593
------------ ----------- ------------ ------------ -----------
Total Expenses........... 3,349,570 179,632 612,343 1,325,415 137,299
Fees waived and reimbursed
by investment adviser and
administrators (Note 2)... (214,258) (11,116) (49,096) (70,577) (22,732)
------------ ----------- ------------ ------------ -----------
Net Expenses............. 3,135,312 168,516 563,247 1,254,838 114,567
------------ ----------- ------------ ------------ -----------
NET INVESTMENT INCOME
(LOSS).................... (161,573) 2,592 (161,440) 76,406 (31,943)
------------ ----------- ------------ ------------ -----------
REALIZED AND UNREALIZED
GAIN (LOSS) ON INVESTMENTS
(Note 1):
Net realized gain (loss):
Security transactions.... 19,088,225 543,044 (601,890) 10,299,624 (373,309)
Foreign currency
transactions............ 69,135 (8,608) (58,189) (48,823) (7,939)
------------ ----------- ------------ ------------ -----------
Total net realized gain
(loss)................... 19,157,360 534,436 (660,079) 10,250,801 (381,248)
Change in unrealized
appreciation/depreciation
of investments and
foreign currency
translations during the
period................... (96,027,633) (4,073,506) (19,044,808) (37,606,697) (4,320,422)
------------ ----------- ------------ ------------ -----------
Net realized and unrealized
loss on investments....... (76,870,273) (3,539,070) (19,704,887) (27,355,896) (4,701,670)
------------ ----------- ------------ ------------ -----------
Net decrease in net assets
resulting from operations. $(77,031,846) $(3,536,478) $(19,866,327) $(27,279,490) $(4,733,613)
============ =========== ============ ============ ===========
</TABLE>
See Notes to Financial Statements
2
<PAGE>
Excelsior Funds, Inc.
Statements of Changes in Net Assets
<TABLE>
<CAPTION>
Latin Pan Emerging
International America Pacific/Asia European Markets
Fund Fund Fund Fund Fund
------------- ----------- ------------ ------------ -----------
<S> <C> <C> <C> <C> <C>
Six Months Ended September
30, 2000 (Unaudited)
Net investment income
(loss)................... $ (161,573) $ 2,592 $ (161,440) $ 76,406 $ (31,943)
Net realized gain (loss)
on investments and
foreign currency
transactions............. 19,157,360 534,436 (660,079) 10,250,801 (381,248)
Change in unrealized
appreciation/depreciation
of investments and
foreign currency
translations during the
period................... (96,027,633) (4,073,506) (19,044,808) (37,606,697) (4,320,422)
------------ ----------- ----------- ------------ -----------
Net decrease in net assets
resulting from
operations............... (77,031,846) (3,536,478) (19,866,327) (27,279,490) (4,733,613)
Distributions to
shareholders:
From net investment
income.................. (335,448) -- -- (321,395) --
From net realized gain on
investments............. (1,561,004) -- -- (10,963,710) --
Increase (decrease) in net
assets from fund share
transactions (Note 4).... 33,778,295 (1,870,802) (4,703,647) 419,439 (816,117)
------------ ----------- ----------- ------------ -----------
Net decrease in net
assets................... (45,150,003) (5,407,280) (24,569,974) (38,145,156) (5,549,730)
NET ASSETS:
Beginning of period...... 473,772,657 23,711,378 88,534,649 195,424,313 17,203,324
------------ ----------- ----------- ------------ -----------
End of period (1)........ $428,622,654 $18,304,098 $63,964,675 $157,279,157 $11,653,594
============ =========== =========== ============ ===========
(1) Including
distributions in
excess of net
investment income.... $ (411,479) $ (17,241) $ (455,463) $ (246,740) $ (36,187)
============ =========== =========== ============ ===========
Year Ended March 31, 2000
Net investment income
(loss)................... $ (1,035,297) $ 74,958 $ (307,060) $ (321,098) $ (57,759)
Net realized gain (loss)
on investments and
foreign currency
transactions............. 13,193,040 (800,993) 21,372,333 21,220,058 23,698
Change in unrealized
appreciation/depreciation
of investments and
foreign currency
translations during the
year..................... 129,985,158 8,378,112 15,830,629 34,547,142 5,422,564
------------ ----------- ----------- ------------ -----------
Net increase in net assets
resulting from
operations............... 142,142,901 7,652,077 36,895,902 55,446,102 5,388,503
Distributions to
shareholders:
From net investment
income.................. -- (375,913) -- -- (39,421)
From net realized gain on
investments............. (752,504) -- -- (14,333,899) --
Increase (decrease) in net
assets from fund share
transactions (Note 4).... 130,299,026 2,252,523 23,631,167 (3,523,690) 6,443,462
------------ ----------- ----------- ------------ -----------
Net increase in net
assets................... 271,689,423 9,528,687 60,527,069 37,588,513 11,792,544
NET ASSETS:
Beginning of year........ 202,083,234 14,182,691 28,007,580 157,835,800 5,410,780
------------ ----------- ----------- ------------ -----------
End of year (2).......... $473,772,657 $23,711,378 $88,534,649 $195,424,313 $17,203,324
============ =========== =========== ============ ===========
--------
(2) Including
undistributed
(distributions in
excess of) net
investment income.... $ 85,542 $ (19,833) $ (294,023) $ (1,751) $ (4,244)
============ =========== =========== ============ ===========
</TABLE>
--------
See Notes to Financial Statements
3
<PAGE>
Excelsior Funds, Inc.
Financial Highlights -- Selected Per Share Data and Ratios
For a Fund share outstanding throughout each period.
<TABLE>
<CAPTION>
Dividends Distributions
Net Asset Net Net Realized Dividends in Excess From Net
Value, Investment and Unrealized Total From From Net of Net Realized Gain
Beginning Income Gain (Loss) on Investment Investment Investment on
of Period (Loss) Investments Operations Income Income Investments
--------- ---------- -------------- ---------- ---------- ---------- -------------
<S> <C> <C> <C> <C> <C> <C> <C>
INTERNATIONAL FUND -- (7/21/87*)
Year Ended March 31,
1996................... $ 9.82 $ 0.10 $ 1.15 $ 1.25 $(0.08) $(0.01) $(0.07)
1997................... 10.91 0.09 0.63 0.72 (0.10) -- (0.19)
1998................... 11.34 0.04 2.11 2.15 (0.02) (0.04) (0.31)
1999................... 13.00 0.01 (0.42) (0.41) (0.03) (0.04) --
2000................... 12.52 (0.03) 7.57 7.54 -- -- (0.04)
Six Months Ended
September 30,
2000 (Unaudited)...... 20.02 (0.01) (3.27) (3.28) (0.01) -- (0.06)
LATIN AMERICA FUND -- (12/31/92*)
Year Ended March 31,
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) -- $(0.16)
1999................... 10.60 0.21 (5.29) (5.08) (0.18) -- --
2000................... 4.77 0.03 2.53 2.56 (0.13) -- --
Six Months Ended
September 30,
2000 (Unaudited)...... 7.20 -- (4) (1.11) (1.11) -- -- --
PACIFIC/ASIA FUND -- (12/31/92*)
Year Ended March 31,
1996................... $ 8.45 $ 0.12 $ 1.33 $ 1.45 $(0.09) $(0.01) $(0.02)
1997................... 9.78 0.07 (0.53) (0.46) (0.07) -- (0.16)
1998................... 9.09 0.01 (2.52) (2.51) (0.01) (0.05) --
1999................... 6.52 -- (6) 0.29 0.29 (0.09) (0.11) --
2000................... 6.61 0.02 5.26 5.28 -- -- --
Six Months Ended
September 30,
2000 (Unaudited)...... 11.89 (0.02) (2.85) (2.87) -- -- --
PAN EUROPEAN FUND -- (12/31/92*)
Year Ended March 31,
1996................... $ 8.19 $ 0.11 $ 1.35 $ 1.46 $(0.10) -- $(0.36)
1997................... 9.19 0.11 2.01 2.12 (0.10) -- (0.27)
1998................... 10.94 (0.01) 4.01 4.00 -- -- (0.81)
1999................... 14.13 -- (4) (1.26) (1.26) -- -- (0.48)
2000................... 12.39 (0.03) 4.90 4.87 -- -- (1.30)
Six Months Ended
September 30,
2000 (Unaudited)...... 15.96 0.01 (2.24) (2.23) (0.03) -- (0.90)
EMERGING MARKETS FUND -- (01/02/98*)
Period Ended March 31,
1998.................. $ 7.00 -- -- -- -- -- --
Year Ended March 31,
1999................... 7.00 $ 0.07 $(2.95) $(2.88) $(0.08) -- --
2000................... 4.04 (0.02) 3.35 3.33 (0.02) -- --
Six Months Ended
September 30,
2000 (Unaudited)...... 7.35 (0.01) (2.07) (2.08) -- -- --
</TABLE>
* Commencement of operations
(1) Annualized
(2) Not Annualized
(3) Expense ratios before waiver of fees and reimbursement of expenses (if any)
by adviser and administrators.
(4) Amount represents less than $0.01 per share.
(5) The annualized ratio of net operating expenses to average net assets,
excluding foreign investment taxes, is 1.65%.
(6) For comparative purposes per share amounts for the year ended March 31,
1999 are based on average shares outstanding.
(7) Total returns do not reflect the 2% fee accrued on redemption of shares
which was implemented effective June 1, 2000.
See Notes to Financial Statements
4
<PAGE>
<TABLE>
<CAPTION>
Distributions Ratio of Ratio of Ratio of Net
in Excess Net Gross Investment
of Net Net Assets, Operating Operating Income
Realized Net Asset End of Expenses Expenses (Loss) to Portfolio
Gain on Total Value, End Total Period to Average to Average Average Turnover
Investments Distributions of Period Return (7) (000's) Net Assets Net Assets(3) Net Assets Rate
------------- ------------- ---------- ---------- ----------- ----------- ------------- ------------ ---------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
-- $(0.16) $10.91 12.77 % $ 97,850 1.40% 1.50% 0.82 % 39%
-- (0.29) 11.34 6.78 % 126,815 1.43% 1.51% 0.70 % 116%
$(0.12) (0.49) 13.00 19.42 % 204,889 1.44% 1.52% 0.32 % 37%
-- (0.07) 12.52 (3.18)% 202,083 1.42% 1.52% 0.11 % 50%
-- (0.04) 20.02 60.30 % 473,773 1.40% 1.51% (0.36)% 25%
-- (0.07) 16.67 (16.40)%(2) 428,623 1.39%(1) 1.49%(1) (0.07)%(1) 37%(1)
-- $(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%
-- (0.18) 10.60 14.05 % 88,696 1.50% 1.60% 0.88 % 77%
$(0.57) (0.75) 4.77 (47.19)% 14,183 1.55% 1.66% 1.63 % 29%
-- (0.13) 7.20 54.52 % 23,711 1.64% 1.75% 0.42 % 69%
-- -- 6.09 (15.42)%(2) 18,304 1.67%(1) 1.79%(1) 0.03 %(1) 9%(1)
-- $(0.12) $ 9.78 17.22 % $ 76,192 1.43% 1.51% 1.12 % 29%
-- (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) 6.61 5.14 % 28,008 1.55% 1.64% 0.01 % 78%
-- -- 11.89 79.88 % 88,535 1.49% 1.58% (0.48)% 105%
-- -- 9.02 (24.14)%(2) 63,965 1.50%(1) 1.63%(1) (0.43)%(1) 67%(1)
-- $(0.46) $ 9.19 18.25 % $ 47,916 1.46% 1.55% 1.28 % 42%
-- (0.37) 10.94 23.76 % 121,991 1.45% 1.52% 1.23 % 82%
-- (0.81) 14.13 38.02 % 207,636 1.43% 1.50% (0.13)% 40%
-- (0.48) 12.39 (8.84)% 157,836 1.43% 1.50% 0.04 % 46%
-- (1.30) 15.96 42.77 % 195,424 1.43% 1.50% (0.21)% 46%
-- (0.93) 12.80 (14.64)%(2) 157,279 1.42%(1) 1.50%(1) 0.09 %(1) 42%(1)
-- -- $ 7.00 (0.14)%(2) $ 6,535 1.85%(1)(5) 2.74%(1) 2.33 %(1) --
-- $(0.08) 4.04 (41.21)% 5,411 1.65% 2.48% 1.93 % 73%
-- (0.02) 7.35 82.77% 17,203 1.65% 2.03% (0.60)% 57%
-- -- 5.27 (28.30)%(2) 11,654 1.65%(1) 1.97%(1) (0.46)%(1) 37%(1)
<CAPTION>
Fee
Waivers
(Note 2)
--------
<C>
$ 0.01
0.01
0.01
0.01
0.01
0.01
$ 0.01
0.01
0.01
0.01
0.01
-- (4)
$ 0.01
0.01
0.01
0.01
-- (4)
0.01
$ 0.01
0.01
0.01
0.01
0.01
0.01
--
$ 0.03
0.01
0.01
</TABLE>
See Notes to Financial Statements
5
<PAGE>
Excelsior Funds, Inc.
Portfolio of Investments September 30, 2000 (Unaudited)
International Fund
<TABLE>
<CAPTION>
Value
Shares (Note 1)
--------- ------------
<C> <S> <C>
COMMON STOCKS -- 92.83%
AUSTRALIA -- 2.63%
311,526 Brambles Industries Ltd............................... $ 8,140,884
655,500 ERG Ltd............................................... 3,141,340
------------
11,282,224
------------
CANADA -- 5.94%
336,800 Bombardier Inc., Class B.............................. 5,811,521
72,000 JDS Uniphase Corp..................................... 6,813,000
171,946 Nortel Networks Corp.................................. 10,310,141
41,000 Sierra Wireless, Inc.................................. 2,526,447
------------
25,461,109
------------
CHILE -- 0.35%
40,280 Vina Concha Y Toro S.A. ADR........................... 1,490,360
------------
EGYPT -- 0.26%
49,800 +Egyptian Company for Mobile Services (MobiNil)....... 1,106,349
------------
FINLAND -- 2.54%
208,100 Nokia Oyj............................................. 8,441,728
95,700 Sonera Oyj............................................ 2,434,792
------------
10,876,520
------------
FRANCE -- 14.11%
89,687 Axa................................................... 11,725,966
105,848 Carrefour S.A......................................... 7,826,463
67,990 Dassault Systemes S.A................................. 5,534,747
127,700 L'OREAL............................................... 9,921,656
56,864 STMicroelectronics N.V. .............................. 2,790,480
99,751 Total Fina S.A., Class B.............................. 14,610,302
108,400 Vivendi............................................... 8,063,039
------------
60,472,653
------------
GERMANY -- 8.46%
41,000 Allianz AG............................................ 13,564,166
40,300 +Consors Discount Broker AG........................... 4,307,724
69,100 Deutsche Telekom AG................................... 2,414,248
41,457 SAP AG................................................ 8,258,512
59,025 Siemens AG............................................ 7,727,546
------------
36,272,196
------------
HONG KONG -- 4.43%
199,223 +China Mobile (Hong Kong) Ltd. ADR.................... 6,462,296
2,107,600 Johnson Electric Holdings Ltd......................... 4,528,258
3,800,000 Li & Fung Ltd......................................... 8,018,215
------------
19,008,769
------------
</TABLE>
<TABLE>
<CAPTION>
Value
Shares (Note 1)
--------- ------------
<C> <S> <C>
COMMON STOCKS -- (continued)
INDIA -- 1.69%
174,000 Housing Development Finance Corp., Ltd................ $ 1,650,536
23,500 Infosys Technologies Ltd. ADR......................... 3,102,000
236,500 Satyam Computer Services Ltd.......................... 2,513,135
------------
7,265,671
------------
ISRAEL -- 0.78%
43,310 +Gilat Satellite Networks Ltd......................... 3,329,456
------------
JAPAN -- 15.82%
46,900 Don Quijote Co., Ltd.................................. 4,931,806
464,000 Furukawa Electric Co., Ltd............................ 12,843,472
34,600 Kyocera Corp.......................................... 5,293,954
45,000 Nintendo Co., Ltd..................................... 8,233,030
825 NTT Data Corp......................................... 7,650,223
164 NTT DoCoMo, Inc....................................... 4,714,392
13,400 Rohm Co., Ltd......................................... 3,679,284
122,600 Sony Corp............................................. 12,460,089
76,400 Tokyo Seimitsu Co., Ltd............................... 8,005,564
------------
67,811,814
------------
NETHERLANDS -- 0.28%
58,641 Wolters Kluwer N.V.................................... 1,191,479
------------
PORTUGAL -- 2.13%
1,734,895 Banco Comercial Portugues S.A......................... 9,119,007
------------
RUSSIA -- 0.88%
65,700 OAO Lukoil Holding ADR................................ 3,784,320
------------
SINGAPORE -- 5.03%
2,428,703 Datacraft Asia Ltd.................................... 20,158,235
539,000 Natsteel Electronics Ltd.............................. 1,394,927
------------
21,553,162
------------
SOUTH KOREA -- 1.58%
37,390 Samsung Electronics................................... 6,773,794
------------
SPAIN -- 3.79%
554,695 Banco Bilbao Vizcaya Argentaria S.A................... 8,389,101
396,560 +Telefonica S.A....................................... 7,864,709
------------
16,253,810
------------
SWEDEN -- 2.46%
691,110 Telefonaktiebolaget LM Ericsson, Class B.............. 10,536,748
------------
</TABLE>
See Notes to Financial Statements
6
<PAGE>
Excelsior Funds, Inc.
Portfolio of Investments September 30, 2000 (Unaudited)
International Fund -- (continued)
<TABLE>
<CAPTION>
Value
Shares (Note 1)
--------- ------------
<C> <S> <C>
COMMON STOCKS -- (continued)
SWITZERLAND -- 2.90%
390 Lindt & Spruengli AG.................................. $ 2,098,087
785 Roche Holding AG...................................... 6,917,101
7,360 Zurich Allied AG...................................... 3,409,067
------------
12,424,255
------------
TAIWAN -- 0.69%
894,720 Taiwan Semiconductor Manufacturing Co................. 2,971,163
------------
THAILAND -- 0.86%
630,400 BEC World Public Co., Ltd. (Foreign).................. 3,203,648
425,900 Dhipaya Insurance Public Co., Ltd..................... 470,300
------------
3,673,948
------------
UNITED KINGDOM -- 15.22%
964,954 Airtours plc.......................................... 3,074,920
180,180 +Baltimore Technologies plc........................... 1,838,381
438,000 Glaxo Wellcome plc.................................... 13,264,288
471,465 +Granada Compass plc.................................. 4,412,991
1,859,816 Invensys plc.......................................... 4,063,286
1,260,200 Serco Group plc....................................... 11,180,742
35,500 Shell Transport & Trading Co. ADR..................... 1,737,281
1,571,802 Shell Transport & Trading Co. plc..................... 12,806,466
3,019,491 Vodafone AirTouch plc................................. 11,273,921
43,000 Vodafone Group plc ADR................................ 1,591,000
------------
65,243,276
------------
TOTAL COMMON STOCKS
(Cost $330,290,834)................................... 397,902,083
------------
</TABLE>
<TABLE>
<CAPTION>
No. of Value
Warrants (Note 1)
----------- ------------
<S> <C> <C>
WARRANTS -- 0.01%
PHILIPPINES -- 0.01%
166,491 +QueenBee Restaurants -- Jollibee
Foods Corp., expiring 03/24/03
(Cost $57,782)................... $ 41,533
------------
<CAPTION>
Principal
Amount
-----------
<S> <C> <C>
DEMAND NOTES -- 8.44%
UNITED STATES -- 8.44%
$18,100,000 Associates Corp. of North America
Master Notes..................... 18,100,000
18,067,000 General Electric Co.
Promissory Notes................. 18,067,000
------------
TOTAL DEMAND NOTES
(Cost $36,167,000)............... 36,167,000
------------
</TABLE>
<TABLE>
<S> <C> <C>
TOTAL INVESTMENTS
(Cost $366,515,616*)...................................... 101.28% $434,110,616
OTHER ASSETS & LIABILITIES (NET).......................... (1.28) (5,487,962)
------ ------------
NET ASSETS................................................ 100.00% $428,622,654
====== ============
</TABLE>
--------
* -- Aggregate cost for Federal tax and book purposes.
+ -- Non-income producing
ADR -- American Depositary Receipt
See Notes to Financial Statements
7
<PAGE>
Excelsior Funds, Inc.
Portfolio of Investments September 30, 2000 (Unaudited)
International Fund -- (continued)
At September 30, 2000, sector diversification of the Fund's investment
portfolio was as follows:
<TABLE>
<CAPTION>
% of
Net Market
Sector Diversification Assets Value
---------------------- ------ ------------
<S> <C> <C>
Information Technology.................................. 20.18% $ 86,494,148
Industrials............................................. 12.85 55,061,404
Financials.............................................. 12.28 52,635,867
Consumer Staples........................................ 9.75 41,785,020
Consumer Discretionary.................................. 9.55 40,921,435
Demand Notes............................................ 8.44 36,167,000
Telecommunication Services.............................. 8.17 35,021,784
Energy.................................................. 7.68 32,938,370
Health Care............................................. 4.71 20,181,389
Technology.............................................. 3.14 13,451,481
Utilities............................................... 2.44 10,477,288
Telecommunications...................................... 1.51 6,462,296
Consumer Cyclical....................................... 0.58 2,513,134
------ ------------
Total Investments....................................... 101.28% $434,110,616
Other Assets and Liabilities (Net)...................... (1.28) (5,487,962)
------ ------------
Net Assets.............................................. 100.00% $428,622,654
====== ============
</TABLE>
See Notes to Financial Statements
8
<PAGE>
Excelsior Funds, Inc.
Portfolio of Investments September 30, 2000 (Unaudited)
Latin America Fund
<TABLE>
<CAPTION>
Value
Shares (Note 1)
----------- ------------
<C> <S> <C>
COMMON STOCKS -- 70.20%
ARGENTINA -- 3.45%
21,833 +Grupo Financiero Galicia S.A. ADR................. $ 327,495
18,578 Perez Companc S.A. ADR............................. 304,215
------------
631,710
------------
BRAZIL -- 17.28%
17,800 Cia Vale do Rio Doce............................... 406,346
17,338,500 Companhia Siderurgica Nacional..................... 550,559
234,051,900 Tele Celular Sul Participacoes S.A................. 546,375
50,100 Tele Centro Oeste Celular Participacoes S.A. ADR... 532,312
5,800 Telemig Celular Participacoes S.A. ADR............. 307,038
20,000 Ultrapar Participacoes S.A. ADR.................... 230,000
17,910 Unibanco--Uniao de Bancos Brasileiros GDR.......... 591,030
------------
3,163,660
------------
CHILE -- 4.32%
17,129 +Cia de Telecomunicaciones de Chile S.A. ADR....... 297,616
13,346 Vina Concha Y Toro S.A. ADR........................ 493,802
------------
791,418
------------
MEXICO -- 41.42%
12,256 Cemex S.A., CPO.................................... 245,886
15,098 Fomento Economico Mexicano S.A. de C.V. ADR........ 588,822
231,200 Grupo Continental S.A.............................. 281,832
577,600 Grupo Elektra S.A. de C.V. CPO..................... 542,457
250,200 +Grupo Financiero Banamex Accival S.A. de C.V.,
Class O............................................ 1,148,363
19,400 Grupo Imsa S.A. de C.V. ADR........................ 177,025
359,000 +Grupo Televisa S.A. CPO........................... 1,035,065
101,300 Organizacion Soriana S.A. de C.V., Series B........ 370,452
47,690 Telefonos de Mexico S.A., ADR, Class L............. 2,536,512
315,200 +Wal-Mart de Mexico S.A. de C.V., Series V......... 654,857
------------
7,581,271
------------
PERU -- 1.33%
33,500 Credicorp Ltd...................................... 242,875
------------
UNITED STATES -- 0.72%
17,600 +StarMedia Network, Inc............................ 131,450
------------
</TABLE>
<TABLE>
<CAPTION>
Value
Shares (Note 1)
---------- -----------
<C> <S> <C>
COMMON STOCKS -- (continued)
VENEZUELA -- 1.68%
12,600 Compania Anonima Nacional Telefonos de Venezuela ADR. $ 307,913
-----------
TOTAL COMMON STOCKS
(Cost $11,133,948)................................... 12,850,297
-----------
PREFERRED STOCKS -- 25.67%
BRAZIL -- 25.67%
42,938,000 Banco Bradesco S.A................................... 355,719
9,687,800 Banco do Estado de Sao Paulo S.A..................... 284,007
4,026,000 Banco Itau S.A....................................... 358,450
34,998,500 Brasil Telecom Participacoes S.A. ................... 408,506
29,500,000 Eletrobras S.A....................................... 600,570
6,500,000 Eletropaulo Metropolitana............................ 389,929
40,516,400 Gerdau S.A........................................... 520,202
43,738 Petrobras S.A........................................ 1,251,353
28,610,000 Tele Celular Sul Participacoes S.A. ................. 86,513
19,435,412 Tele Norte Leste Participacoes S.A. ................. 443,153
-----------
TOTAL PREFERRED STOCKS
(Cost $3,776,572).................................... 4,698,402
-----------
<CAPTION>
Principal
Amount
----------
<C> <S> <C>
CONVERTIBLE BONDS -- 0.00%
BRAZIL -- 0.00%
$ 45,600 Cia Vale do Rio Doce Zero Coupon, 07/01/06 (Cost $0). 0
-----------
DEMAND NOTES -- 4.15%
UNITED STATES -- 4.15%
400,000 Associates Corp. of North America Master Notes....... 400,000
359,000 General Electric Co. Promissory Notes................ 359,000
-----------
TOTAL DEMAND NOTES
(Cost $759,000)..................................... 759,000
-----------
</TABLE>
<TABLE>
<S> <C> <C>
TOTAL INVESTMENTS
(Cost $15,669,520*)........................................ 100.02% $18,307,699
OTHER ASSETS & LIABILITIES (NET)........................... (0.02) (3,601)
------ -----------
NET ASSETS................................................. 100.00% $18,304,098
====== ===========
</TABLE>
--------
*--Aggregate cost for Federal tax and book purposes.
+--Non-income producing
ADR--American Depositary Receipt
GDR--Global Depositary Receipt
See Notes to Financial Statements
9
<PAGE>
Excelsior Funds, Inc.
Portfolio of Investments September 30, 2000 (Unaudited)
Latin America Fund -- (continued)
At September 30, 2000, sector diversification of the Fund's investment
portfolio was as follows:
<TABLE>
<CAPTION>
% of
Net Market
Sector Diversification Assets Value
---------------------- ------ -----------
<S> <C> <C>
Telecommunication Services............................... 29.86% $ 5,465,938
Financials............................................... 16.28 2,980,444
Consumer Discretionary................................... 14.22 2,602,831
Materials................................................ 10.38 1,900,018
Energy................................................... 8.09 1,481,353
Consumer Staples......................................... 7.46 1,364,456
Utilities................................................ 5.41 990,499
Demand Notes............................................. 4.15 759,000
Technology............................................... 2.38 435,665
Capital Goods............................................ 1.79 327,495
------ -----------
Total Investments........................................ 100.02% $18,307,699
Other Assets and Liabilities (Net)....................... (0.02) (3,601)
------ -----------
Net Assets............................................... 100.00% $18,304,098
====== ===========
</TABLE>
See Notes to Financial Statements
10
<PAGE>
Excelsior Funds, Inc.
Portfolio of Investments September 30, 2000 (Unaudited)
Pacific/Asia Fund
<TABLE>
<CAPTION>
Value
Shares (Note 1)
----------- ------------
<C> <S> <C>
COMMON STOCKS -- 98.40%
AUSTRALIA -- 4.79%
45,862 Brambles Industries Ltd. ........................... $ 1,198,478
388,549 ERG Ltd. ........................................... 1,862,036
------------
3,060,514
------------
HONG KONG -- 20.17%
504,300 Asia Satellite Telecommunications Holdings Ltd. .... 1,229,053
2,475,000 Cafe de Coral Holdings Ltd. ........................ 880,981
39,000 +China Mobile (Hong Kong) Ltd. ADR.................. 1,265,063
6,300,000 +China Southern Airlines Co. Ltd. .................. 1,959,659
432,700 +ehealthcareasia Ltd. .............................. 22,201
52,530 Huaneng Power International, Inc. ADR............... 840,480
469,600 Johnson Electric Holdings
Ltd. ............................................... 1,008,953
618,200 Li & Fung Ltd. ..................................... 1,304,437
8,654,000 +Quality Healthcare Asia Ltd. ...................... 2,525,378
6,840,000 Yanzhou Coal Mining Co.,
Ltd. ............................................... 1,864,418
------------
12,900,623
------------
INDIA -- 6.29%
56,000 Hero Honda Motors Ltd. ............................. 1,010,562
245,000 Hindustan Lever Ltd. ............................... 1,113,709
75,000 Housing Development Finance Corp., Ltd. ............ 711,438
112,000 Satyam Computer Services
Ltd. ............................................... 1,188,933
------------
4,024,642
------------
INDONESIA -- 2.31%
2,942,500 PT Ramayana Lestari Sentosa Tbk..................... 1,474,621
------------
JAPAN -- 34.39%
60,700 Arisawa Mfg. Co., Ltd. ............................. 1,857,474
10,200 Don Quijote Co., Ltd. .............................. 1,072,589
69,600 Furukawa Electric Co., Ltd. ........................ 1,926,521
10,600 Kyocera Corp. ...................................... 1,621,847
15,700 Nintendo Co., Ltd. ................................. 2,872,413
121 NTT Data Corp. ..................................... 1,122,033
64 NTT DoCoMo, Inc. ................................... 1,839,763
6,600 Rohm Co., Ltd. ..................................... 1,812,185
8,300 Ryohin Keikaku Co., Ltd. ........................... 654,210
7,500 Softbank Corp. ..................................... 702,429
25,300 Sony Corp. ......................................... 2,571,291
</TABLE>
<TABLE>
<CAPTION>
Value
Shares (Note 1)
----------- ------------
<C> <S> <C>
COMMON STOCKS -- (continued)
JAPAN -- (continued)
40,300 Terumo Corp. ....................................... $ 1,154,738
14,700 Tokyo Seimitsu Co., Ltd. ........................... 1,540,337
57,000 YOKOWO Co., Ltd. ................................... 1,252,689
------------
22,000,519
------------
NEW ZEALAND -- 1.40%
185,000 Baycorp Holdings Ltd. .............................. 896,672
------------
PHILIPPINES -- 1.05%
722,000 ABS-CBN Broadcasting Corp. PDR...................... 673,449
------------
SINGAPORE -- 6.63%
300,494 Datacraft Asia Ltd.................................. 2,494,100
367,200 Natsteel Electronics Ltd............................ 950,311
905,300 Singapore Bus Services Ltd.......................... 796,589
------------
4,241,000
------------
SOUTH KOREA -- 13.11%
26,700 +Hankuk Electric Glass Co., Ltd..................... 1,508,610
28,000 Korea Telecom Corp.................................. 1,677,489
26,380 +LG Home Shopping, Inc.............................. 2,100,936
9,572 Samsung Electronics................................. 1,734,120
125,000 Shin Sung ENG....................................... 376,682
58,100 SK Corp............................................. 984,834
------------
8,382,671
------------
TAIWAN -- 6.84%
318,500 Hon Hai Precision Industry Co., Ltd................. 2,094,993
54,470 ++Synnex Technology International Corp., GDR........ 688,479
479,600 +Taiwan Semiconductor Manufacturing Co.............. 1,592,643
------------
4,376,115
------------
THAILAND -- 1.42%
179,000 BEC World Public Co., Ltd. (Foreign)................ 909,665
------------
TOTAL COMMON STOCKS
(Cost $65,496,095).................................. 62,940,491
------------
</TABLE>
See Notes to Financial Statements
11
<PAGE>
Excelsior Funds, Inc.
Portfolio of Investments September 30, 2000 (Unaudited)
Pacific/Asia Fund -- (continued)
<TABLE>
<CAPTION>
No. of Value
Warrants (Note 1)
-------- -----------
<C> <S> <C>
WARRANTS -- 0.03%
PHILIPPINES -- 0.03%
84,123 +QueenBee Restaurants -- Jollibee Foods Corp., expiring
03/24/03 (Cost $29,320)................................ $ 20,985
-----------
</TABLE>
<TABLE>
<CAPTION>
Principal
Amount
---------
<C> <S> <C>
DEMAND NOTES -- 2.57%
UNITED STATES -- 2.57%
$800,000 Associates Corp. of North
America Master Notes................................... $ 800,000
845,000 General Electric Co.
Promissory Notes....................................... 845,000
-----------
TOTAL DEMAND NOTES
(Cost $1,645,000)...................................... 1,645,000
-----------
</TABLE>
<TABLE>
<CAPTION>
Value
(Note 1)
-----------
<S> <C> <C>
TOTAL INVESTMENTS (Cost $67,170,415*)...................... 101.00% $64,606,476
OTHER ASSETS & LIABILITIES (NET)........................... (1.00) (641,801)
------ -----------
NET ASSETS................................................. 100.00% $63,964,675
====== ===========
</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. This security may be resold in transactions exempt from
registration, normally to qualified institutional buyers. At September
30, 2000 these securities amounted to $688,479 or 1.08% of net assets.
ADR -- American Depositary Receipt
GDR -- Global Depositary Receipt
PDR -- Philippine Depositary Receipt
See Notes to Financial Statements
12
<PAGE>
Excelsior Funds, Inc.
Portfolio of Investments September 30, 2000 (Unaudited)
Pacific/Asia Fund -- (continued)
At September 30, 2000, sector diversification of the Fund's investment
portfolio was as follows:
<TABLE>
<CAPTION>
% of
Net Market
Sector Diversification Assets Value
---------------------- ------ -----------
<S> <C> <C>
Consumer Discretionary................................... 20.48% $13,098,841
Consumer Cyclical........................................ 15.22 9,735,970
Technology............................................... 11.39 7,286,314
Information Technology................................... 10.97 7,017,509
Industrials.............................................. 10.42 6,664,661
Consumer Staples......................................... 10.42 6,664,191
Financials............................................... 3.61 2,310,539
Materials................................................ 2.91 1,864,418
Raw/Intermediate Materials............................... 2.90 1,857,474
Utilities................................................ 2.88 1,839,763
Energy................................................... 2.85 1,825,314
Demand Notes............................................. 2.57 1,645,000
Telecommunication Services............................... 1.98 1,265,062
Health Care.............................................. 1.81 1,154,738
Capital Goods............................................ 0.59 376,682
------ -----------
Total Investments........................................ 101.00% $64,606,476
Other Assets and Liabilities (Net)....................... (1.00) (641,801)
------ -----------
Net Assets............................................... 100.00% $63,964,675
====== ===========
</TABLE>
See Notes to Financial Statements
13
<PAGE>
Excelsior Funds, Inc.
Portfolio of Investments September 30, 2000 (Unaudited)
Pan European Fund
<TABLE>
<CAPTION>
Value
Shares (Note 1)
----------- ------------
<C> <S> <C>
COMMON STOCKS -- 96.88%
CROATIA -- 0.97%
103,850 ++Pliva d.d. GDR.................................... $ 1,120,573
36,900 Pliva d.d. GDR (Registered)......................... 397,597
------------
1,518,170
------------
FINLAND -- 3.62%
126,140 Nokia Oyj........................................... 5,116,961
22,600 Sonera Oyj.......................................... 574,987
------------
5,691,948
------------
FRANCE -- 20.75%
44,632 Axa................................................. 5,835,331
54,296 Carrefour S.A....................................... 4,014,678
40,620 Dassault Systemes S.A............................... 3,306,684
66,270 L'OREAL............................................. 5,148,850
42,120 STMicroelectronics N.V.............................. 2,066,949
51,717 Total Fina S.A., Class B............................ 7,574,871
63,000 Vivendi............................................. 4,686,084
------------
32,633,447
------------
GERMANY -- 12.96%
20,800 Allianz AG.......................................... 6,881,333
37,000 +Consors Discount Broker AG......................... 3,954,982
32,020 Deutsche Telekom AG................................. 1,118,730
80,020 +Global TeleSystems, Inc............................ 365,091
19,830 SAP AG.............................................. 3,950,269
31,380 Siemens AG.......................................... 4,108,266
------------
20,378,671
------------
IRELAND -- 1.99%
72,096 Irish Continental Group plc......................... 420,988
274,300 Irish Life & Permanent plc.......................... 2,716,370
------------
3,137,358
------------
ITALY -- 2.33%
225,500 San Paolo-IMI S.p.A................................. 3,669,388
------------
NETHERLANDS -- 1.47%
113,442 Wolters Kluwer N.V.................................. 2,304,937
------------
POLAND -- 1.03%
180,206 +Elektrim Spolka Akcyjna S.A........................ 1,627,385
------------
PORTUGAL -- 3.84%
1,147,890 Banco Comercial Portugues S.A....................... 6,033,574
------------
RUSSIA -- 1.42%
152,200 Surgutneftegaz ADR.................................. 2,225,925
------------
</TABLE>
<TABLE>
<CAPTION>
Value
Shares (Note 1)
----------- ------------
<C> <S> <C>
COMMON STOCKS -- (continued)
SPAIN -- 8.53%
441,200 Banco Bilbao Vizcaya Argentaria S.A................. $ 6,672,624
119,150 +Promotora de Informaciones S.A. (Prisa)............ 2,694,582
204,440 +Telefonica S.A..................................... 4,054,522
------------
13,421,728
------------
SWEDEN -- 3.31%
341,320 Telefonaktiebolaget LM Ericsson AB, Class B......... 5,203,807
------------
SWITZERLAND -- 7.02%
16,740 +Logitech International S.A......................... 5,279,165
439 Roche Holding AG.................................... 3,868,290
4,100 Zurich Allied AG.................................... 1,899,072
------------
11,046,527
------------
TURKEY -- 1.40%
192,800,000 +Dogan Yayin Holding A.S............................ 2,204,423
------------
UNITED KINGDOM -- 26.24%
100,110 +Baltimore Technologies plc......................... 1,021,425
790,830 Capita Group plc.................................... 7,016,399
216,000 Glaxo Wellcome plc.................................. 6,541,293
356,798 +Granada Compass plc................................ 3,339,689
1,125,863 Invensys plc........................................ 2,459,761
791,320 Serco Group plc..................................... 7,020,746
35,600 Shell Transport & Trading Co. ADR................... 1,742,175
725,325 Shell Transport & Trading Co. plc................... 5,909,682
1,666,978 Vodafone AirTouch plc............................... 6,224,022
------------
41,275,192
------------
TOTAL COMMON STOCKS
(Cost $129,311,892)................................. 152,372,480
------------
<CAPTION>
Principal
Amount
-----------
<C> <S> <C>
DEMAND NOTES -- 3.52%
UNITED STATES -- 3.52%
$ 2,700,000 Associates Corp. of North America Master Notes...... 2,700,000
2,829,000 General Electric Co. Promissory Notes............... 2,829,000
------------
TOTAL DEMAND NOTES
(Cost $5,529,000)................................... 5,529,000
------------
</TABLE>
See Notes to Financial Statements
14
<PAGE>
Excelsior Funds, Inc.
Portfolio of Investments September 30, 2000 (Unaudited)
Pan European Fund -- (continued)
<TABLE>
<CAPTION>
Value
(Note 1)
------------
<S> <C> <C>
TOTAL INVESTMENTS
(Cost $134,840,892*)..................................... 100.40% $157,901,480
OTHER ASSETS & LIABILITIES (NET).......................... (0.40) (622,323)
------ ------------
NET ASSETS................................................ 100.00% $157,279,157
====== ============
</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. This security may be resold in transactions exempt from
registration, normally to qualified institutional buyers. At September
30, 2000 these securities amounted to $1,120,573 or 0.71% of net
assets.
ADR -- American Depositary Receipt
GDR -- Global Depositary Receipt
See Notes to Financial Statements
15
<PAGE>
Excelsior Funds, Inc.
Portfolio of Investments September 30, 2000 (Unaudited)
Pan European Fund--(continued)
At September 30, 2000, sector diversification of the Fund's investment
portfolio was as follows:
<TABLE>
<CAPTION>
% of
Net
Sector Diversification Assets Market Value
---------------------- ------ ------------
<S> <C> <C>
Financials.............................................. 23.95% $ 37,662,673
Industrials............................................. 14.40 22,653,545
Information Technology.................................. 13.85 21,784,825
Consumer Cyclical....................................... 10.01 15,743,784
Energy.................................................. 9.68 15,226,729
Health Care............................................. 7.59 11,927,753
Utilities............................................... 7.30 11,485,093
Consumer Discretionary.................................. 4.02 6,319,615
Demand Notes............................................ 3.52 5,529,000
Consumer Staples........................................ 3.27 5,148,850
Telecommunication Services.............................. 2.81 4,419,613
------ ------------
Total Investments....................................... 100.40% $157,901,480
Other Assets and Liabilities (Net)...................... (0.40) (622,323)
------ ------------
Net Assets.............................................. 100.00% $157,279,157
====== ============
</TABLE>
See Notes to Financial Statements
16
<PAGE>
Excelsior Funds, Inc.
Portfolio of Investments September 30, 2000 (Unaudited)
Emerging Markets Fund
<TABLE>
<CAPTION>
Value
Shares (Note 1)
---------- -----------
<C> <S> <C>
COMMON STOCKS -- 89.30%
BRAZIL -- 8.37%
25,641 Globo Cabo S.A. ADR................................... $ 342,948
37,100 Tele Centro Oeste Celular Participacoes S.A. ADR...... 394,188
4,500 Telemig Celular Participacoes S.A. ADR................ 238,219
-----------
975,355
-----------
CHILE -- 2.54%
6,610 +Cia de Telecomunicaciones de Chile S.A. ADR.......... 114,849
4,896 Vina Concha Y Toro S.A. ADR........................... 181,152
-----------
296,001
-----------
EGYPT -- 1.39%
25,000 +Orascom Telecommunications........................... 161,875
-----------
GREECE -- 2.82%
4,200 Alpha Credit Bank S.A................................. 166,167
8,470 Hellenic Telecommunications Organization S.A.......... 162,367
-----------
328,534
-----------
HONG KONG -- 7.40%
103,500 Asia Satellite Telecommunications Holdings Ltd........ 252,245
10,200 +China Mobile (Hong Kong) Ltd. ADR.................... 330,862
504,000 +China Southern Airlines Co., Ltd..................... 156,773
271,000 Dazhong Transportation Co., Ltd....................... 122,492
-----------
862,372
-----------
INDIA -- 5.26%
13,600 +ICICI Ltd. ADR....................................... 149,600
5,336 +Satyam Infoway Ltd. ADR.............................. 72,369
32,200 +The India Fund, Inc.................................. 390,425
-----------
612,394
-----------
INDONESIA -- 1.84%
34,300 PT Telekomunikasi Indonesia ADR....................... 214,375
-----------
ISRAEL -- 0.64%
9,000 +Tioga Technologies Ltd............................... 74,813
-----------
</TABLE>
<TABLE>
<CAPTION>
Value
Shares (Note 1)
------ ------------
<C> <S> <C>
COMMON STOCKS -- (continued)
MEXICO -- 11.91%
80,300 +Grupo Financiero Banamex Accival S.A. de C.V., Class
O...................................................... $ 368,559
6,950 +Grupo Televisa S.A. GDR............................... 400,928
6,100 Telefonos de Mexico S.A., Class L, ADR................. 324,444
141,300 +Wal-Mart de Mexico S.A. de C.V., Series V............. 293,564
------------
1,387,495
------------
RUSSIA -- 7.30%
5,500 OAO Lukoil Holding ADR................................. 316,800
24,920 RAO Unified Energy Systems ADR......................... 333,928
22,730 Rostelecom ADR......................................... 200,308
------------
851,036
------------
SOUTH AFRICA -- 10.63%
45,200 +Dimension Data Holdings plc........................... 418,774
816 Edgars Consolidated Stores Ltd. ....................... 4,210
17,950 Nedcor Ltd. ........................................... 386,385
179,000 Old Mutual plc......................................... 429,501
------------
1,238,870
------------
SOUTH KOREA -- 10.74%
11,738 Korea Telecom Corp. ADR................................ 394,690
17,700 LG Cable Ltd. ......................................... 269,865
1,600 Samsung Electronics.................................... 289,866
11,585 SK Telecom Co., Ltd. ADR............................... 296,866
------------
1,251,287
------------
TAIWAN -- 14.31%
50,960 Hon Hai Precision Industry Co., Ltd. .................. 335,199
93,533 President Chain Store Corp. ........................... 295,669
61,050 +Ritek, Inc. .......................................... 201,759
70,200 Sunplus Technology Co., Ltd. .......................... 323,900
67,600 Synnex Technology International Corp. ................. 213,692
89,600 +Taiwan Semiconductor Manufacturing Co. ............... 297,541
------------
1,667,760
------------
THAILAND -- 2.00%
45,900 BEC World Public Co., Ltd. (Foreign)................... 233,260
------------
</TABLE>
See Notes to Financial Statements
17
<PAGE>
Excelsior Funds, Inc.
Portfolio of Investments September 30, 2000 (Unaudited)
Emerging Markets Fund -- (continued)
<TABLE>
<CAPTION>
Value
Shares (Note 1)
--------- -----------
<C> <S> <C>
COMMON STOCKS -- (continued)
TURKEY -- 1.50%
175,260 ++Akbank T.A.S. ADR.................................... $ 175,260
-----------
UNITED STATES -- 0.65%
10,200 +StarMedia Network, Inc. .............................. 76,181
-----------
TOTAL COMMON STOCKS
(Cost $9,599,948)...................................... 10,406,868
-----------
PREFERRED STOCKS -- 1.44%
BRAZIL -- 1.44%
5,729,000 Banco do Estado de Sao Paulo S.A. (Cost $218,195)...... 167,951
-----------
</TABLE>
<TABLE>
<CAPTION>
Value
Principal Amount (Note 1)
---------------------------------------------------------- -----------
<S> <C> <C>
REPURCHASE AGREEMENT -- 9.54%
UNITED STATES -- 9.54%
$1,111,000 Agreement with Chase
Securities, Inc. Government Dealership 6.25%, dated
09/29/00, due 10/02/00, to be repurchased at
$1,319,313 collateralized by $875,000 U.S. Treasury
Notes 8.875%, due 08/15/17, valued at $1,135,598
(Cost $1,111,000).................................. $ 1,111,000
-----------
TOTAL INVESTMENTS
(Cost $10,929,143*)....................................... 100.28% $11,685,819
OTHER ASSETS & LIABILITIES (NET).......................... (0.28) (32,225)
------ -----------
NET ASSETS................................................ 100.00% $11,653,594
------ -----------
</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. This security may be resold in transactions exempt from
registration, normally to qualified institutional buyers. At September
30, 2000 these securities amounted to $175,260 or 1.50% of net assets.
ADR -- American Depositary Receipt
GDR -- Global Depositary Receipt
See Notes to Financial Statements
18
<PAGE>
Excelsior Funds, Inc.
Portfolio of Investments September 30, 2000 (Unaudited)
Emerging Markets Fund -- (continued)
At September 30, 2000, sector diversification of the Fund's investment
portfolio was as follows:
<TABLE>
<CAPTION>
% of
Net Market
Sector Diversification Assets Value
---------------------- ------ -----------
<S> <C> <C>
Financials............................................... 19.41% $ 2,262,197
Telecommunication Services............................... 17.32 2,018,265
Information Technology................................... 14.88 1,734,326
Repurchase Agreement..................................... 9.54 1,111,000
Consumer Staples......................................... 7.66 892,877
Consumer Discretionary................................... 7.64 890,644
Utilities................................................ 6.75 786,522
Consumer Cyclical........................................ 4.94 575,902
Mutual Fund.............................................. 3.35 390,425
Energy................................................... 2.72 316,800
Industrials.............................................. 2.32 269,865
Technology............................................... 2.03 236,688
Telecommunications....................................... 1.72 200,308
------ -----------
Total Investments........................................ 100.28% $11,685,819
Other Assets and Liabilities (Net)....................... (0.28) (32,225)
------ -----------
Net Assets............................................... 100.00% $11,653,594
====== ===========
</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 eighteen managed investment
portfolios, each having its own investment objectives and policies. The
following is a summary of significant accounting policies for International
Fund, Latin America Fund, Pacific/Asia Fund, Pan European 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 specific receivables or payables of a Portfolio generally
arising in connection with the purchase or
20
<PAGE>
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.
21
<PAGE>
(e) 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.
Net realized and unrealized gains of the Portfolios derived in some Countries
are subject to certain non-U.S. taxes.
At March 31, 2000, 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,
-----------------------
2007 2008 Total
----------- ----------- -----------
<S> <C> <C> <C>
International Fund....................... -- -- --
Latin America Fund....................... $13,841,000 $16,461,000 $30,302,000
Pacific/Asia Fund........................ 7,805,000 -- 7,805,000
Pan European Fund........................ -- -- --
Emerging Markets Fund.................... 303,000 1,975,000 2,278,000
</TABLE>
At September 30, 2000, 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>
Tax Basis Tax Basis Net Unrealized
Unrealized Unrealized Appreciation
Appreciation (Depreciation) (Depreciation)
------------ -------------- --------------
<S> <C> <C> <C>
International Fund................ $100,649,869 $(33,054,869) $67,595,000
Latin America Fund................ 4,072,500 (1,434,321) 2,638,179
Pacific/Asia Fund................. 6,103,966 (8,667,905) (2,563,939)
Pan European Fund................. 38,762,555 (15,701,967) 23,060,588
Emerging Markets Fund............. 2,003,014 (1,246,338) 756,676
</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 (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,
22
<PAGE>
computed daily and paid monthly, at the annual rate of 1% of the average daily
net assets of each of the International Fund, Latin America Fund, Pacific/Asia
Fund, Pan European Fund and 1.25% of the average daily net assets of the
Emerging Markets Fund. U.S. Trust NY is a state-chartered bank and trust
company and a member bank of the Federal Reserve System. U.S. Trust Company is
a Connecticut state bank and trust company. Each is a wholly-owned subsidiary
of U.S. Trust Corporation, a registered bank holding company. U.S Trust
Corporation is a wholly-owned subsidiary of The Charles Schwab Corporation
("Schwab").
U.S. Trust Company, 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, 2000, administration fees
charged by U.S. Trust Company were as follows:
<TABLE>
<S> <C>
International Fund.................................................. $220,118
Latin America Fund.................................................. 9,768
Pacific/Asia Fund................................................... 36,665
Pan European Fund................................................... 86,414
Emerging Markets Fund............................................... 6,805
</TABLE>
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. U.S. Trust has contractually agreed to waive investment
advisory fees and to reimburse other ordinary operating expenses through March
31, 2001, to the extent necessary to keep total operating expenses from
exceeding 1.50% of each of International Fund's, Pacific/Asia Fund's and Pan
European Fund's average daily net assets. With regard to Latin America Fund an
Emerging Markets Fund, through July 31, 2000, U.S. Trust voluntarily agreed to
waive fees and reimburse expenses to the extent necessary to maintain an
annual expense ratio of not more than 1.67% and 1.65%, respectively. Effective
August 1, 2000, U.S. Trust has contractually agreed to waive investment
advisory fees and to reimburse other ordinary operating expenses through March
31, 2001, to the extent necessary to keep total operating expenses from
exceeding 1.70% of each of Latin America Fund's an Emerging Markets Fund's
average daily net assets.
For the six months ended September 30, 2000, no reimbursements were required
pursuant to the above except with regard to Emerging Markets Fund for which
U.S. Trust waived investment advisory fees totaling $17,624.
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
23
<PAGE>
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
$340,250 for the six months ended September 30, 2000. Through July 31, 2000,
U.S. Trust and the Administrators voluntarily agreed to waive investment
advisory and administration fees payable by each Portfolio in an amount equal
to the administrative service fee expense (including fees paid to affiliates
of U.S. Trust) by such Portfolio. Effective August 1, 2000, U.S Trust has
voluntarily agreed to continue waiving investment advisor and administration
fees payable by each Portfolio in an amount equal to the administrative
services fees expense paid to subsidiaries of U.S. Trust Corporation. For the
six months ended September 30, 2000, 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................................... $213,762 $ 496
Latin America Fund................................... 10,459 657
Pacific/Asia Fund.................................... 47,658 1,438
Pan European Fund.................................... 68,812 1,765
Emerging Markets Fund................................ 5,108 --
</TABLE>
Edgewood Services, Inc. (the "Distributor"), a wholly-owned subsidiary of
Federated Investors, Inc., serves as the 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. Each member of the Nominating Committee receives an
annual fee for $2,000 for services in connection with this committee.
3. Purchases and Sales of Securities:
For the six months ended September 30, 2000, purchases and sales of
securities, excluding short-term investments, for the Portfolios aggregated:
<TABLE>
<CAPTION>
Purchases Sales
----------- -----------
<S> <C> <C>
International Fund................................... $95,402,697 $79,773,159
Latin America Fund................................... 749,562 2,022,831
Pacific/Asia Fund.................................... 24,613,891 26,921,214
Pan European Fund.................................... 36,161,274 44,867,299
Emerging Markets Fund................................ 2,434,600 3,581,542
</TABLE>
4. Common Stock:
Excelsior Fund currently has authorized capital of 35 billion shares of
Common Stock, 28.875 billion of which is currently classified to represent
interests in one of eighteen separate investment
24
<PAGE>
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 Latin America Fund, Pacific/Asia Fund, Pan European 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.
A redemption fee of 2% of the value of the shares redeemed or exchanged was
implemented effective June 1, 2000, and is imposed on shares in a Portfolio
redeemed or exchanged 30 days or less after their date of purchase. The
redemption fee is intended to limit short-term trading in the Portfolios or,
to the extent that short-term trading persists, to impose the costs of that
type of activity on the shareholders who engage in it. The redemption fee will
be paid to the appropriate Portfolios.
<TABLE>
<CAPTION>
International Fund
----------------------------------------------------
Six Months Ended Year Ended
09/30/00 03/31/00
------------------------- -------------------------
Shares Amount Shares Amount
----------- ------------ ----------- ------------
<S> <C> <C> <C> <C>
Sold..................... 14,810,423 $263,575,308 30,061,970 $485,999,199
Issued as reinvestment of
dividends............... 8,718 163,561 3,974 69,436
Redeemed................. (12,770,537) (230,185,213) (22,539,087) (355,769,609)
Redemption Fee........... -- 224,639 -- --
----------- ------------ ----------- ------------
Net Increase............. 2,048,604 $ 33,778,295 7,526,857 $130,299,026
=========== ============ =========== ============
<CAPTION>
Latin America Fund
----------------------------------------------------
Six Months Ended Year Ended
09/30/00 03/31/00
------------------------- -------------------------
Shares Amount Shares Amount
----------- ------------ ----------- ------------
<S> <C> <C> <C> <C>
Sold..................... 542,760 $ 3,455,543 5,697,656 $ 31,220,269
Issued as reinvestment of
dividends............... -- -- 16,775 86,729
Redeemed................. (830,389) (5,350,936) (5,394,990) (29,054,475)
Redemption Fee........... -- 24,591 -- --
----------- ------------ ----------- ------------
Net Increase (Decrease).. (287,629) $ (1,870,802) 319,441 $ 2,252,523
=========== ============ =========== ============
</TABLE>
25
<PAGE>
<TABLE>
<CAPTION>
Pacific/Asia Fund
------------------------------------------------------
Six Months Ended Year Ended
09/30/00 03/31/00
------------------------- ---------------------------
Shares Amount Shares Amount
----------- ------------ ------------ -------------
<S> <C> <C> <C> <C>
Sold.................... 5,114,183 $ 51,567,587 20,605,277 $ 193,006,185
Issued as reinvestment
of dividends........... 14 14 -- --
Redeemed................ (5,468,220) (56,601,049) (17,398,826) (169,375,018)
Redemption Fee.......... -- 329,801 -- --
----------- ------------ ------------ -------------
Net Increase (Decrease). (354,023) $ (4,703,647) 3,206,451 $ 23,631,167
=========== ============ ============ =============
<CAPTION>
Pan European Fund
------------------------------------------------------
Six Months Ended Year Ended
09/30/00 03/31/00
------------------------- ---------------------------
Shares Amount Shares Amount
----------- ------------ ------------ -------------
<S> <C> <C> <C> <C>
Sold.................... 5,400,887 $ 77,356,712 17,951,587 $ 233,776,474
Issued as reinvestment
of dividends........... 60,575 876,912 97,037 1,222,733
Redeemed................ (5,414,086) (78,006,494) (18,544,702) (238,522,897)
Redemption Fee.......... -- 192,309 -- --
----------- ------------ ------------ -------------
Net Increase (Decrease). 47,376 $ 419,439 (496,078) $ (3,523,690)
=========== ============ ============ =============
<CAPTION>
Emerging Markets Fund
------------------------------------------------------
Six Months Ended Year Ended
09/30/00 03/31/00
------------------------- ---------------------------
Shares Amount Shares Amount
----------- ------------ ------------ -------------
<S> <C> <C> <C> <C>
Sold.................... 243,038 $ 1,484,588 1,422,216 $ 9,011,110
Issued as reinvestment
of dividends........... -- -- 104 494
Redeemed................ (374,590) (2,300,745) (420,946) (2,568,142)
Redemption Fee.......... -- 40 -- --
----------- ------------ ------------ -------------
Net Increase (Decrease). (131,552) $ (816,117) 1,001,374 $ 6,443,462
=========== ============ ============ =============
</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.
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, 2000, the Portfolios had
no borrowings under the agreement.
26
