<PAGE>
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
[EXCELSIOR LOGO APPEARS HERE]
Domestic 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.................................................. 3
STATEMENTS OF CHANGES IN NET ASSETS....................................... 5
FINANCIAL HIGHLIGHTS -- SELECTED PER SHARE DATA AND RATIOS................ 7
PORTFOLIOS OF INVESTMENTS
Blended Equity Fund...................................................... 9
Large Cap Growth Fund.................................................... 11
Optimum Growth Fund...................................................... 12
Small Cap Fund........................................................... 13
Value and Restructuring Fund............................................. 14
Value Equity Fund........................................................ 16
Energy and Natural Resources Fund........................................ 17
Real Estate Fund......................................................... 18
Technology Fund.......................................................... 19
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 tele-
phone 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 may be obtained by contacting Excelsior Funds, Inc., Excelsior Tax-Ex-
empt Funds, Inc. and Excelsior Institutional Trust at 1-800-446-1012.
Investors should read the current prospectus carefully prior to investing or
sending money.
Excelsior Funds, Inc., Excelsior Tax-Exempt Funds, Inc. and Excelsior Institu-
tional Trust are distributed by Edgewood Services, Inc.
You may write to Excelsior Funds, Inc., Excelsior Tax-Exempt Funds, Inc. and
Excelsior Institutional Trust 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 OR AFFILIATES AND SHARES ARE NOT INSURED BY THE FEDERAL DEPOSIT
INSURANCE CORPORATION, THE FEDERAL RESERVE BOARD, OR ANY OTHER AGENCY.
INVESTMENTS IN THE FUNDS INVOLVE INVESTMENT RISKS, INCLUDING POSSIBLE LOSS OF
PRINCIPAL. FUND SHARES ARE NOT INSURED OR GUARANTEED BY THE U.S. GOVERNMENT.
<PAGE>
Excelsior Funds, Inc.
Statements of Assets and Liabilities
September 30, 2000 (Unaudited)
<TABLE>
<CAPTION>
Blended Large Cap Optimum
Equity Growth Growth
Fund Fund Fund
------------ ------------ ------------
<S> <C> <C> <C>
ASSETS:
Investments, at cost--see
accompanying portfolios........... $484,411,934 $327,797,929 $ 57,066,812
============ ============ ============
Investments, at value (Note 1).... $973,218,609 $488,080,642 $101,803,562
Cash.............................. -- 994 411
Dividends receivable.............. 690,530 27,242 18,071
Interest receivable............... 43,479 9,664 18,187
Receivable for investments sold... -- 410,745 --
Receivable for fund shares sold... 698,569 -- 34,511
Prepaid expenses.................. 13,548 5,768 1,484
Unamortized organization costs
(Note 5).......................... -- 30,157 156
------------ ------------ ------------
Total Assets.................. 974,664,735 488,565,212 101,876,382
LIABILITIES:
Payable for investments
purchased......................... -- -- --
Payable for fund shares redeemed.. 1,433,398 2,242,875 166,233
Investment advisory fees payable
(Note 2).......................... 541,247 270,944 50,013
Administration fees payable (Note
2)................................ 115,983 65,862 25,179
Administrative servicing fees
payable (Note 2).................. 112,971 58,282 --
Directors'/Trustees' fees payable
(Note 2).......................... 3,217 1,602 312
Due to custodian bank............. 68,944 -- --
Accrued expenses and other
payables.......................... 113,328 68,693 134,916
------------ ------------ ------------
Total Liabilities............. 2,389,088 2,708,258 376,653
------------ ------------ ------------
NET ASSETS......................... 972,275,647 485,856,954 101,499,729
============ ============ ============
NET ASSETS consist of:
Undistributed net investment
income (loss)..................... $ 30,091 $ (1,286,014) $ (212,700)
Accumulated net realized gain
(loss) on investments............. 33,142,860 (7,410,059) 18,356,757
Unrealized appreciation of
investments, written options and
foreign currency translations..... 488,806,675 160,282,713 44,736,750
Par value (Note 4)................ 20,053 27,569 36
Paid-in capital in excess of par
value............................. 450,275,968 334,242,745 38,618,886
------------ ------------ ------------
Total Net Assets................... $972,275,647 $485,856,954 $101,499,729
============ ============ ============
Net Assets:
Shares............................ $972,275,647 $485,856,954 $ 22,366,652
Institutional Shares.............. -- -- 79,133,077
Shares outstanding (Note 4):
Shares............................ 20,052,875 27,568,786 802,870
Institutional Shares.............. -- -- 2,812,918
NET ASSET VALUE PER SHARE (net
assets / shares outstanding):
Shares............................ $48.49 $17.62 $27.86
====== ====== ======
Institutional Shares.............. -- -- $28.13
====== ====== ======
</TABLE>
See Notes to Financial Statements
1
<PAGE>
<TABLE>
<CAPTION>
Small Value and Value Energy and Real
Cap Restructuring Equity Natural Resources Estate Technology
Fund Fund Fund Fund Fund Fund
----- -------------- ----------- ----------------- ----------- -----------
<S> <C> <C> <C> <C> <C>
$109,727,049 $1,130,419,581 $38,465,077 $74,028,912 $41,442,066 $18,065,897
============ ============== =========== =========== =========== ===========
$126,636,871 $1,530,097,700 $46,689,839 $99,728,894 $43,573,773 $18,235,769
149,046 -- -- 3,292 -- 298
60,355 610,740 18,310 27,783 312,336 79
40,183 186,207 2,224 51,351 1,244 7,259
677,351 -- -- -- 179,994 --
147,606 2,945,355 -- 195,681 10,512 63,816
660 13,306 772 739 430 --
-- -- 157 -- 12,789 --
------------ -------------- ----------- ----------- ----------- -----------
127,712,072 1,533,853,308 46,711,302 100,007,740 44,091,078 18,307,221
1,648,878 15,170,718 392,900 5,780,346 -- 798,723
977,939 6,928,111 -- 26,711 116 --
41,646 933,287 22,019 35,112 20,401 36,365
9,580 149,690 13,124 15,455 5,695 2,262
36,643 327,175 -- 13,605 6,028 --
24 4,042 158 294 185 56
-- 66,074 124,601 -- 44,103 --
29,527 257,207 11,036 15,835 2,538 6,184
------------ -------------- ----------- ----------- ----------- -----------
2,744,237 23,836,304 563,838 5,887,358 79,066 843,590
------------ -------------- ----------- ----------- ----------- -----------
124,967,835 1,510,017,004 46,147,464 94,120,382 44,012,012 17,463,631
============ ============== =========== =========== =========== ===========
$ 82,242 $ 823,622 $ 49,073 $ 111,616 $ 30,025 $ (28,913)
7,597,911 (20,329,730) 15,600,212 6,401,658 (8,025,976) (269,743)
16,909,822 399,678,064 8,224,665 25,699,982 2,131,707 169,872
8,483 45,514 23 5,443 7,240 2,671
100,369,377 1,129,799,534 22,273,491 61,901,683 49,869,016 17,589,744
------------ -------------- ----------- ----------- ----------- -----------
$124,967,835 $1,510,017,004 $46,147,464 $94,120,382 $44,012,012 $17,463,631
============ ============== =========== =========== =========== ===========
$124,967,835 $1,510,017,004 $ 251,063 $94,120,382 $44,012,012 $17,463,631
-- -- 45,896,401 -- -- --
8,482,684 45,513,986 12,709 5,443,351 7,239,903 2,670,718
-- -- 2,324,101 -- -- --
$14.73 $33.18 $19.75 $17.29 $6.08 $6.54
====== ====== ====== ====== ===== =====
-- -- $19.75 -- -- --
====== ====== ====== ====== ===== =====
</TABLE>
See Notes to Financial Statements
2
<PAGE>
Excelsior Funds, Inc.
Statements of Operations
Six Months Ended September 30, 2000 (Unaudited)
<TABLE>
<CAPTION>
Blended Large Cap Optimum
Equity Growth Growth
Fund Fund Fund
------------ ------------ ------------
<S> <C> <C> <C>
INVESTMENT INCOME:
Interest income................... $ 366,369 $ 661,068 $ 91,296
Dividend income................... 4,425,101 475,939 134,331
Less: Foreign taxes withheld...... -- -- --
------------ ------------ ------------
Total Income...................... 4,791,470 1,137,007 225,627
EXPENSES:
Investment advisory fees (Note
2)................................ 3,709,930 1,834,642 333,819
Administration fees (Note 2)...... 751,879 371,821 78,062
Administrative servicing fees
(Note 2).......................... 356,387 182,955 4,584
Custodian fees.................... 127,599 61,564 13,722
Shareholder servicing agent fees.. 72,466 71,523 11,502
Legal and audit fees.............. 32,872 18,362 9,992
Shareholder reports............... 14,004 11,461 1,365
Registration and filing fees...... 12,292 12,670 8,222
Directors' / Trustees' fees and
expenses (Note 2)................. 8,123 4,414 2,134
Amortization of organization costs
(Note 5).......................... -- 2,256 123
Distribution fees (Note 2)........ -- -- 27,473
Miscellaneous expenses............ 26,977 20,865 3,918
------------ ------------ ------------
Total Expenses.................... 5,112,529 2,592,533 494,916
Fees waived by investment adviser
and administrators (Note 2)....... (351,193) (169,512) (56,589)
------------ ------------ ------------
Net Expenses...................... 4,761,336 2,423,021 438,327
------------ ------------ ------------
NET INVESTMENT INCOME (LOSS)....... 30,134 (1,286,014) (212,700)
------------ ------------ ------------
REALIZED AND UNREALIZED GAIN (LOSS)
ON INVESTMENTS (Note 1):
Net realized gain (loss):
Security transactions............. 34,106,547 7,910,115 7,349,832
Written options................... -- -- --
Foreign currency transactions..... -- -- --
------------ ------------ ------------
Total net realized gain (loss).... 34,106,547 7,910,115 7,349,832
Change in unrealized
appreciation/depreciation on
investments, written options and
foreign currency translations
during the period................. (76,588,258) (44,171,487) (16,789,338)
------------ ------------ ------------
Net realized and unrealized gain
(loss) on investments............. (42,481,711) (36,261,372) (9,439,506)
------------ ------------ ------------
Net increase (decrease) in net
assets resulting from operations.. $(42,451,577) $(37,547,386) $ (9,652,206)
============ ============ ============
</TABLE>
*Technology Fund commenced operations on March 31, 2000.
See Notes to Financial Statements
3
<PAGE>
<TABLE>
<CAPTION>
Small Value and Value Energy and Real
Cap Restructuring Equity Natural Resources Estate Technology
Fund Fund Fund Fund Fund Fund*
----------- ------------- ------------ ----------------- ----------- ----------
<S> <C> <C> <C> <C> <C>
$ 560,195 $ 1,052,586 $ 8,689 $ 175,909 $ 64,736 $ 38,692
278,676 27,886,527 1,168,645 422,816 1,292,875 658
-- -- (348) -- -- --
----------- ------------ ------------ ----------- ----------- ---------
838,871 28,939,113 1,176,986 598,725 1,357,611 39,350
340,974 4,067,538 162,418 234,530 197,993 54,415
86,380 1,030,443 37,982 59,414 30,256 8,271
99,956 957,078 -- 43,508 17,177 10
23,963 173,107 9,190 12,080 5,834 4,160
19,376 409,219 7,304 35,829 5,886 2,372
2,913 48,490 3,550 2,938 1,618 391
2,316 31,662 1,579 1,800 1,529 10,757
6,946 11,251 15,343 8,940 7,697 2,500
673 11,386 1,132 663 341 85
-- -- 123 -- 2,959 --
-- -- 370 -- -- --
9,359 27,414 1,073 2,481 1,942 2,791
----------- ------------ ------------ ----------- ----------- ---------
592,856 6,767,588 240,064 402,183 273,232 85,752
(99,647) (704,838) (39,796) (33,507) (35,639) (18,052)
----------- ------------ ------------ ----------- ----------- ---------
493,209 6,062,750 200,268 368,676 237,593 67,700
----------- ------------ ------------ ----------- ----------- ---------
345,662 22,876,363 976,718 230,049 1,120,018 (28,350)
----------- ------------ ------------ ----------- ----------- ---------
25,476 (659,699) 14,715,540 2,496,545 (1,099,615) (269,743)
-- 1,365,704 -- -- -- --
-- (208) -- -- -- --
----------- ------------ ------------ ----------- ----------- ---------
25,476 705,797 14,715,540 2,496,545 (1,099,615) (269,743)
(4,393,114) (22,120,998) (18,737,807) 7,288,682 7,078,978 169,872
----------- ------------ ------------ ----------- ----------- ---------
(4,367,638) (21,415,201) (4,022,267) 9,785,227 5,979,363 (99,871)
----------- ------------ ------------ ----------- ----------- ---------
$(4,021,976) $ 1,461,162 $ (3,045,549) $10,015,276 $ 7,099,381 $(128,221)
=========== ============ ============ =========== =========== =========
</TABLE>
See Notes to Financial Statements
4
<PAGE>
Excelsior Funds, Inc.
Statements of Changes in Net Assets
<TABLE>
<CAPTION>
Blended Large Cap Optimum
Equity Growth Growth
Fund Fund Fund
------------ ------------ ------------
<S> <C> <C> <C>
Six Months Ended September 30, 2000
(Unaudited)
Net investment income (loss)........ $ 30,134 $ (1,286,014) $ (212,700)
Net realized gain (loss) on
investments......................... 34,106,547 7,910,115 7,349,832
Net realized gain on written
options............................. -- -- --
Net realized loss on foreign
currency transactions............... -- -- --
Change in unrealized
appreciation/depreciation of
investments, written options and
foreign currency translations during
the period.......................... (76,588,258) (44,171,487) (16,789,338)
------------ ------------ ------------
Net increase (decrease) in net
assets resulting from operations.... (42,451,577) (37,547,386) (9,652,206)
Distributions to shareholders:
From net investment income
Shares............................. (106,841) -- --
Institutional Shares............... -- -- --
------------ ------------ ------------
Total distributions............... (106,841) -- --
------------ ------------ ------------
Increase (decrease) in net assets
from fund share transactions (Note
4)
Shares............................. 21,424,960 25,090,242 2,495,669
Institutional Shares .............. -- -- 800,767
------------ ------------ ------------
Total from fund share
transactions...................... 21,424,960 25,090,242 3,296,436
------------ ------------ ------------
Net increase (decrease) in net
assets.............................. (21,133,458) (12,457,144) (6,355,770)
NET ASSETS:
Beginning of period................ 993,409,105 498,314,098 107,855,499
------------ ------------ ------------
End of period (1).................. $972,275,647 $485,856,954 $101,499,729
============ ============ ============
(1) Including undistributed net
investment income.................. $ 30,091 $ (1,286,014) $ (212,700)
============ ============ ============
Year Ended March 31, 2000
Net investment income (loss)........ $ 619,236 $ (1,603,901) $ (229,016)
Net realized gain (loss) on
investments......................... 14,070,026 (11,743,135) 22,425,776
Net realized loss on foreign
currency transactions............... -- -- --
Change in unrealized
appreciation/depreciation of
investments, written options and
foreign currency translations during
the year............................ 191,700,096 121,578,266 3,177,959
------------ ------------ ------------
Net increase (decrease) in net
assets resulting from operations.... 206,389,358 108,231,230 25,374,719
Distributions to shareholders:
From net investment income
Shares............................. (1,149,475) -- --
Institutional Shares............... -- -- --
From net realized gain on
investments
Shares............................. (24,632,190) -- (2,801,624)
Institutional Shares............... -- -- (11,457,427)
In excess of net realized gain on
investments
Shares............................. (963,687) -- --
------------ ------------ ------------
Total distributions............... (26,745,352) -- (14,259,051)
------------ ------------ ------------
Increase (decrease) in net assets
from fund share transactions (Note
4)
Shares............................. 93,492,128 138,535,123 7,591,166
Institutional Shares............... -- -- (11,310,189)
------------ ------------ ------------
Total from fund share
transactions..................... 93,492,128 138,535,123 (3,719,023)
------------ ------------ ------------
Net increase in net assets.......... 273,136,134 246,766,353 7,396,645
NET ASSETS:
Beginning of year.................. 720,272,971 251,547,745 100,458,854
------------ ------------ ------------
End of year (2).................... $993,409,105 $498,314,098 $107,855,499
============ ============ ============
--------
(2) Including undistributed net
investment income.................. $ 106,798 $ -- $ --
============ ============ ============
</TABLE>
--------
*Technology Fund commenced operations on March 31, 2000.
See Notes to Financial Statements
5
<PAGE>
<TABLE>
<CAPTION>
Small Value and Value Energy and Real
Cap Restructuring Equity Natural Resources Estate Technology
Fund Fund Fund Fund Fund Fund*
------------ -------------- ------------ ----------------- ----------- -----------
<S> <C> <C> <C> <C> <C>
$ 345,662 $ 22,876,363 $ 976,718 $ 230,049 $ 1,120,018 $ (28,350)
25,476 (659,699) 14,715,540 2,496,545 (1,099,615) (269,743)
-- 1,365,704 -- -- -- --
-- (208) -- -- -- --
(4,393,114) (22,120,998) (18,737,807) 7,288,682 7,078,978 169,872
------------ -------------- ------------ ----------- ----------- -----------
(4,021,976) 1,461,162 (3,045,549) 10,015,276 7,099,381 (128,221)
(269,100) (22,421,053) (6,548) (156,752) (1,254,417) (563)
-- -- (921,785) -- -- --
------------ -------------- ------------ ----------- ----------- -----------
(269,100) (22,421,053) (928,333) (156,752) (1,254,417) (563)
------------ -------------- ------------ ----------- ----------- -----------
21,317,897 323,732,602 (46,851) 13,136,188 4,463,605 17,592,415
-- -- (4,146,050) -- -- --
------------ -------------- ------------ ----------- ----------- -----------
21,317,897 323,732,602 (4,192,901) 13,136,188 4,463,605 17,592,415
------------ -------------- ------------ ----------- ----------- -----------
17,026,821 302,772,711 (8,166,783) 22,994,712 10,308,569 17,463,631
107,941,014 1,207,244,293 54,314,247 71,125,670 33,703,443 --
------------ -------------- ------------ ----------- ----------- -----------
$124,967,835 $1,510,017,004 $ 46,147,464 $94,120,382 $44,012,012 $17,463,631
============ ============== ============ =========== =========== ===========
$ 82,242 $ 823,622 $ 49,073 $ 111,616 $ 30,025 $ (28,913)
============ ============== ============ =========== =========== ===========
$ 8,235 $ 1,975,975 $ 147,525 $ 197,964 $ 2,107,377
11,251,028 (1,209,577) 1,293,913 9,381,472 (4,822,127)
-- (4,458) (2,680) (453) --
19,556,536 294,661,200 15,693,776 10,323,732 2,590,497
------------ -------------- ------------ ----------- -----------
30,815,799 295,423,140 17,132,534 19,902,715 (124,253)
-- (2,302,013) (342) (250,304) (1,966,824)
-- -- (231,511) -- --
-- -- (1,336) (2,177,387) --
-- -- (885,998) -- --
-- -- -- -- --
------------ -------------- ------------ ----------- -----------
-- (2,302,013) (1,119,187) (2,427,691) (1,966,824)
------------ -------------- ------------ ----------- -----------
33,336,782 319,508,408 161,435 10,629,906 2,953,645
-- -- (1,291,679) -- --
------------ -------------- ------------ ----------- -----------
33,336,782 319,508,408 (1,130,244) 10,629,906 2,953,645
------------ -------------- ------------ ----------- -----------
64,152,581 612,629,535 14,883,103 28,104,930 862,568
43,788,433 594,614,758 39,431,144 43,020,740 32,840,875
------------ -------------- ------------ ----------- -----------
$107,941,014 $1,207,244,293 $ 54,314,247 $71,125,670 $33,703,443
============ ============== ============ =========== ===========
$ 5,680 $ 368,312 $ 688 $ 38,319 $ 164,424
============ ============== ============ =========== ===========
</TABLE>
See Notes to Financial Statements
6
<PAGE>
Excelsior Funds
Financial Highlights -- Selected Per Share Data and Ratios
For a Fund share outstanding throughout each period.
<TABLE>
<CAPTION>
Net Realized Distributions Distributions in
Net Asset Net and Unrealized Dividends From Net Excess of Net
Value, Investment Gain (Loss) Total From From Net Realized Gain Realized Gain on
Beginning Income on Investments Investment Investment on Investments Investments and
of Period (Loss) and Options Operations Income and Options Options
--------- ---------- -------------- ---------- ---------- -------------- ----------------
<S> <C> <C> <C> <C> <C> <C> <C>
BLENDED EQUITY FUND --
(4/25/85*)
Shares:
Year Ended March 31,
1996.................... $21.40 $ 0.12 $ 5.21 $ 5.33 $(0.11) $(2.19) --
1997.................... 24.43 0.18 2.50 2.68 (0.14) (1.16) --
1998.................... 25.81 0.16 12.59 12.75 (0.16) (2.28) --
1999.................... 36.12 0.11 6.90 7.01 (0.13) (0.49) --
2000.................... 42.51 0.03 9.54 9.57 (0.06) (1.34) $(0.05)
Six Months Ended
September 30, 2000
(Unaudited)............ 50.63 -- (4) (2.13) (2.13) (0.01) -- --
Trust Shares --
(11/12/96*)
Period Ended March 31,
1997................... 26.30 0.04 0.03 0.07 (0.03) (0.56) --
Period from April 1,
1997 to October 27,
1997................... 25.78 0.02 4.67 4.69 (0.05) -- --
LARGE CAP GROWTH FUND --
(10/1/97*)
Period Ended March 31,
1998................... $ 7.00 -- $ 1.51 $ 1.51 -- -- --
Year Ended March 31,
1999.................... 8.51 $(0.03) 5.82 5.79 -- -- --
2000.................... 14.30 (0.06) 4.74 4.68 -- -- --
Six Months Ended
September 30, 2000
(Unaudited)............ 18.98 (0.05) (1.31) (1.36) -- -- --
OPTIMUM GROWTH FUND --
(7/3/96*)
Shares:
Period Ended March 31,
1997................... $ 9.87 $ 0.02 $ 0.31 $ 0.33 $(0.02) -- --
Year Ended March 31,
1998.................... 10.18 (0.01) 6.15 6.14 (0.01) -- --
1999.................... 16.31 (0.06) 11.15 11.09 -- -- --
2000.................... 27.40 (0.11) 7.16 7.05 -- $(3.88) --
Six Months Ended
September 30, 2000
(Unaudited)............ 30.57 (0.08) (2.63) (2.71) -- -- --
SMALL CAP FUND --
(12/31/92*)
Shares:
Year Ended March 31,
1996.................... $ 9.77 $(0.02) $ 1.72 $ 1.70 -- $(0.69) --
1997.................... 10.78 (0.03) (1.43) (1.46) -- (0.10) $(0.39)
1998.................... 8.83 (0.01) 3.13 3.12 -- -- --
1999.................... 11.95 -- (2.56) (2.56) -- (0.12) --
2000.................... 9.27 -- (4) 6.12 6.12 -- -- --
Six Months Ended
September 30, 2000
(Unaudited)............ 15.39 0.04 (0.67) (0.63) $(0.03) -- --
Trust Shares --
(9/6/96*)
Period Ended March 31,
1997................... 9.98 (0.03) (0.92) (0.95) -- (0.22) --
Period from April 1,
1997 to October 27,
1997................... 8.81 (0.03) 2.52 2.49 -- -- --
VALUE AND RESTRUCTURING
FUND -- (12/31/92*)
Shares:
Year Ended March 31,
1996.................... $10.55 $ 0.10 $ 3.71 $ 3.81 $(0.09) $(0.24) --
1997.................... 14.03 0.13 2.36 2.49 (0.12) (0.47) --
1998.................... 15.93 0.10 8.12 8.22 (0.09) (0.27) --
1999.................... 23.79 0.13 0.21 0.34 (0.11) (0.14) --
2000.................... 23.88 0.07 10.03 10.10 (0.09) -- --
Six Months Ended
September 30, 2000
(Unaudited)............ 33.89 0.56 (0.72) (0.16) (0.55) -- --
Trust Shares --
(9/19/96*)
Period Ended March 31,
1997................... 14.61 0.05 1.53 1.58 (0.05) (0.23) --
Period from April 1,
1997 to June 30, 1997.. 15.91 0.02 2.94 2.96 (0.02) -- --
VALUE EQUITY FUND --
(1/15/97*)
Shares:
Period Ended March 31,
1997................... $12.08 $ 0.01 $(0.76) $(0.75) -- -- --
Year Ended March 31,
1998.................... 11.33 0.07 5.57 5.64 $(0.06) $(0.80) --
1999.................... 16.11 0.08 0.55 0.63 (0.07) (1.32) --
2000.................... 15.35 0.01 6.35 6.36 (0.05) (0.32) --
Six Months Ended
September 30, 2000
(Unaudited)............ 21.34 0.36 (1.59) (1.23) (0.36) -- --
ENERGY AND NATURAL
RESOURCES FUND --
(12/31/92*)
Year Ended March 31,
1996.................... $ 7.92 $ 0.07 $ 1.63 $ 1.70 $(0.07) -- --
1997.................... 9.55 0.09 2.60 2.69 (0.09) $(1.03) --
1998.................... 11.12 0.09 2.69 2.78 (0.10) (1.07) $(0.07)
1999.................... 12.66 0.10 (1.65) (1.55) (0.09) -- --
2000.................... 11.02 0.04 4.72 4.76 (0.06) (0.51) --
Six Months Ended
September 30, 2000
(Unaudited)............ 15.21 0.05 2.06 2.11 (0.03) -- --
REAL ESTATE FUND --
(10/1/97*)
Period Ended March 31,
1998................... $ 7.00 $ 0.15 $ 0.01 $ 0.16 $(0.11) -- --
Year Ended March 31,
1999.................... 7.05 0.33 (1.55) (1.22) (0.33) -- --
2000.................... 5.50 0.34 (0.31) 0.03 (0.32) -- --
Six Months Ended
September 30, 2000
(Unaudited)............ 5.21 0.17 0.89 1.06 (0.19) -- --
TECHNOLOGY -- (3/31/00*)
Period Ended September
30, 2000 (Unaudited)... $ 7.00 $(0.01) $(0.45) $(0.46) -- (4) -- --
</TABLE>
* Commencement of Operations
(1) Not Annualized
(2) 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.
See Notes to Financial Statements
7
<PAGE>
<TABLE>
<CAPTION>
Net Ratio of Net Ratio of Gross Ratio of Net
Assets, Operating Operating Investment
Net Asset End of Expenses to Expenses to Income (Loss) Portfolio Fee
Total Value, End Total Period Average Net Average Net to Average Turnover Waivers
Distributions of Period Return (000) Assets Assets (3) Net Assets Rate (Note 2)
------------- ---------- ------- --------- ------------ -------------- ------------- --------- --------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
$(2.30) $24.43 26.45 % $ 188,574 1.05% 1.12% 0.55 % 27% $ 0.02
(1.30) 25.81 11.09 % 306,990 1.01% 1.06% 0.71 % 39% 0.01
(2.44) 36.12 50.82 % 594,909 0.99% 1.06% 0.55 % 28% 0.02
(0.62) 42.51 19.65 % 720,273 0.95% 1.01% 0.29 % 20% 0.02
(1.45) 50.63 22.90 % 993,409 0.97% 1.02% 0.08 % 24% 0.02
(0.01) 48.49 (4.22)%(1) 972,276 0.96%(2) 1.03%(2) 0.01 %(2) 37%(2) 0.02
(0.59) 25.78 0.23 %(1) 81 1.36%(2) 1.41%(2) 0.45 %(2) 39%(2) --
(0.05) 30.42 17.57 %(1) -- 1.34%(2) 1.41%(2) 0.20 %(2) N/A $ 0.01
-- $ 8.51 21.57 %(1) $ 47,529 1.05%(2) 1.20%(2) (0.16)%(2) 12%(2) --
-- 14.30 68.04 % 251,548 1.04% 1.08% (0.53)% 4% --
-- 18.98 32.73 % 498,314 1.01% 1.07% (0.48)% 20% $ 0.01
-- 17.62 (7.17)%(1) 485,857 0.99%(2) 1.06%(2) (0.53)%(2) 19%(2) 0.01
$(0.02) $10.18 3.31 %(1) $ 3,357 1.05%(2) 1.47%(2) 0.33 %(2) 20%(2) $ 0.03
(0.01) 16.31 60.41 % 6,602 1.05% 1.32% (0.12)% 19% 0.03
-- 27.40 68.00 % 12,414 1.05% 1.26% (0.34)% 22% 0.04
(3.88) 30.57 27.40 % 21,967 1.05% 1.18% (0.43)% 44% 0.03
-- 27.86 (8.86)%(1) 22,367 1.05%(2) 1.16%(2) (0.61)%(2) 49%(2) 0.02
$(0.69) $10.78 18.29 % $ 78,061 0.90% 0.98% (0.17)% 38% $ 0.01
(0.49) 8.83 (14.33)% 53,258 0.94% 1.02% (0.26)% 55% 0.01
-- 11.95 35.33 % 68,548 0.94% 1.01% (0.14)% 73% 0.01
(0.12) 9.27 (21.41)% 43,788 0.94% 1.05% (0.04)% 115% 0.01
-- 15.39 65.91 % 107,941 0.92% 1.03% 0.01 % 134% 0.01
(0.03) 14.73 (3.94)%(1) 124,968 0.87%(2) 1.05%(2) 0.61 %(2) 108%(2) 0.01
(0.22) 8.81 (9.77)%(1) 8 1.29%(2) 1.40%(2) (0.87)%(2) 55%(2) --
-- 11.30 29.29 %(1) -- 1.25%(2) 1.31%(2) (0.59)%(2) N/A --
$(0.33) $14.03 36.48 % $ 74,052 0.91% 0.95% 0.88 % 56% --
(0.59) 15.93 18.09 % 124,011 0.91% 0.95% 0.90 % 62% $ 0.01
(0.36) 23.79 52.10 % 388,447 0.89% 0.93% 0.54 % 30% 0.01
(0.25) 23.88 1.48 % 594,615 0.93% 1.07% 0.59 % 43% 0.03
(0.09) 33.89 42.41 % 1,207,244 0.90% 1.03% 0.25 % 20% 0.03
(0.55) 33.18 (0.41)%(1) 1,510,017 0.90%(2) 1.00%(2) 3.38 %(2) 10%(2) 0.02
(0.28) 15.91 10.85 %(1) 52 1.26%(2) 1.30%(2) 0.54 %(2) 62%(2) --
(0.02) 18.85 18.61 %(1) -- 1.21%(2) 1.25%(2) 0.47 %(2) N/A --
-- $11.33 (6.21)%(1) $ 56 1.05%(2) 1.43%(2) 0.54 %(2) 64%(2) $ 0.01
$(0.86) 16.11 51.09 % 78 1.05% 1.35% 0.47 % 51% 0.05
(1.39) 15.35 4.59 % 125 1.05% 1.32% 0.53 % 55% 0.04
(0.37) 21.34 41.60 % 336 1.05% 1.20% 0.02 % 45% 0.05
(0.36) 19.75 (5.62)%(1) 251 1.05%(2) 1.21%(2) 4.44 %(2) 117%(2) 0.01
$(0.07) $ 9.55 21.60 % $ 23,294 0.96% 1.09% 0.88 % 43% $ 0.01
(1.12) 11.12 28.28 % 33,393 0.93% 0.98% 0.84 % 87% --
(1.24) 12.66 24.97 % 46,174 0.99% 1.07% 0.69 % 88% 0.01
(0.09) 11.02 (12.23)% 43,021 0.98% 1.09% 0.97 % 96% 0.01
(0.57) 15.21 44.61 % 71,126 0.97% 1.08% 0.37 % 138% 0.01
(0.03) 17.29 13.98 %(1) 94,120 0.94%(2) 1.03%(2) 0.59 %(2) 45%(2) 0.01
$(0.11) $ 7.05 2.26 %(1) $ 41,171 1.20%(2) 1.40%(2) 5.02 %(2) 30%(2) $ 0.01
(0.33) 5.50 (17.55)% 32,841 1.20% 1.43% 5.37 % 28% 0.01
(0.32) 5.21 0.58 % 33,703 1.20% 1.41% 6.17 % 27% 0.01
(0.19) 6.08 20.63 %(1) 44,012 1.20%(2) 1.38%(2) 5.66 %(2) 19%(2) 0.01
-- (4) $ 6.54 (6.57)%(1) $ 17,464 1.25%(2) 1.58%(2) (0.52)%(2) 15%(2) $ 0.01
</TABLE>
See Notes to Financial Statements
8
<PAGE>
Excelsior Funds, Inc.
Portfolio of Investments September 30, 2000 (Unaudited)
Blended Equity Fund
<TABLE>
<CAPTION>
Value
Shares (Note 1)
--------- ------------
<C> <S> <C>
COMMON STOCKS -- 99.33%
CAPITAL GOODS -- 7.70%
116,000 Boeing Co. ........................................... $ 7,308,000
90,000 Dover Corp. .......................................... 4,224,375
30,000 Emerson Electric Co. ................................. 2,010,000
828,300 General Electric Co. ................................. 47,782,557
185,566 Illinois Tool Works, Inc. ............................ 10,368,500
23,000 Ingersoll-Rand Co. ................................... 779,125
8,170 Visteon Corp. ........................................ 123,571
132,000 Waste Management, Inc. ............................... 2,301,750
------------
74,897,878
------------
COMMUNICATIONS SERVICES -- 3.92%
120,000 +America Online, Inc. ................................ 6,450,000
168,809 AT&T Corp. ........................................... 4,958,764
120,000 +NEXTEL Communications, Inc., Class A................. 5,610,000
98,000 SBC Communications, Inc. ............................. 4,900,000
137,000 Tyco International Ltd. .............................. 7,106,875
163,000 Verizon Communications................................ 7,895,312
13,400 +Yahoo!, Inc. ........................................ 1,223,588
------------
38,144,539
------------
CONSUMER CYCLICAL -- 24.05%
315,000 Abbott Laboratories................................... 14,982,187
24,542 +Amgen, Inc. ......................................... 1,710,271
200,000 +Analog Devices, Inc. ................................ 16,512,500
14,286 +Ariba, Inc. ......................................... 2,046,470
192,000 Bristol-Myers Squibb Co. ............................. 10,968,000
80,000 +Comcast Corp., Class A Special....................... 3,275,000
349,635 +Ford Motor Co. ...................................... 8,850,136
13,854 +Genentech, Inc. ..................................... 2,572,515
43,800 General Motors Corp. ................................. 2,847,000
150,000 +General Motors Corp., Class H........................ 5,577,000
69,700 HCA--The Healthcare Co. .............................. 2,587,613
100,000 Herman Miller, Inc. .................................. 3,206,250
194,039 Home Depot, Inc. ..................................... 10,296,194
93,750 Honeywell International, Inc. ........................ 3,339,844
13,352 +Human Genome Sciences, Inc. ......................... 2,309,896
204,225 Johnson & Johnson Co. ................................ 19,184,386
250,000 McDonald's Corp. ..................................... 7,546,875
139,600 Medtronic, Inc. ...................................... 7,233,025
128,000 Merck & Co., Inc. .................................... 9,528,000
676,621 Pfizer, Inc. ......................................... 30,405,656
220,000 Schering-Plough Corp. ................................ 10,230,000
131,800 Sears, Roebuck & Co. ................................. 4,272,956
315,000 Target Corp. ......................................... 8,071,875
81,900 +Tenet Healthcare Corp. .............................. 2,979,112
90,000 TRW, Inc. ............................................ 3,656,250
263,521 +Viacom, Inc., Class B................................ 15,415,978
438,843 Wal-Mart Stores, Inc. ................................ 21,119,319
32,100 +Wellpoint Health Networks, Inc. ..................... 3,081,600
------------
233,805,908
------------
</TABLE>
<TABLE>
<CAPTION>
Value
Shares (Note 1)
--------- ------------
<C> <S> <C>
COMMON STOCKS -- (continued)
CONSUMER STAPLES -- 7.60%
51,350 Bestfoods............................................. $ 3,735,713
187,500 Coca-Cola Co. ........................................ 10,335,938
30,000 Fort James Corp. ..................................... 916,875
145,000 General Mills, Inc. .................................. 5,147,500
239,000 Gillette Co. ......................................... 7,379,125
108,300 Pharmacia Corp. ...................................... 6,518,306
141,546 Procter & Gamble Co. ................................. 9,483,582
50,000 +Safeway, Inc. ....................................... 2,334,375
221,190 Time Warner, Inc. .................................... 17,308,117
109,900 Walgreen Co. ......................................... 4,169,331
171,045 Walt Disney Co. ...................................... 6,542,471
------------
73,871,333
------------
ENERGY -- 8.07%
55,600 Amerada Hess Corp. ................................... 3,721,725
30,000 Apache Corp. ......................................... 1,773,750
173,912 BP Amoco plc ADR...................................... 9,217,336
48,000 Chevron Corp. ........................................ 4,092,000
429,583 Exxon Mobil Corp. .................................... 38,286,585
70,600 Kerr-McGee Corp. ..................................... 4,677,250
142,300 Occidental Petroleum Corp. ........................... 3,103,919
114,500 Phillips Petroleum Co. ............................... 7,184,875
73,000 Royal Dutch Petroleum Co. ............................ 4,375,437
56,400 Unocal Corp. ......................................... 1,998,675
------------
78,431,552
------------
FINANCIAL -- 17.02%
87,000 American Express Co. ................................. 5,285,250
218,530 American International Group, Inc. ................... 20,910,589
220,000 Citigroup, Inc. ...................................... 11,893,750
30,000 Dun & Bradstreet Corp. ............................... 1,033,125
342,306 Fleet Boston Financial Corp. ......................... 13,349,934
53,475 Goldman Sachs Group, Inc. ............................ 6,092,808
81,702 Household International, Inc. ........................ 4,626,376
30,000 J.P. Morgan & Co., Inc. .............................. 4,901,250
41,600 MBIA, Inc. ........................................... 2,958,800
504,152 Mellon Financial Corp. ............................... 23,380,049
465,388 Morgan Stanley Dean Witter & Co. ..................... 42,553,915
141,300 State Street Boston Corp. ............................ 18,369,000
134,000 Washington Mutual, Inc. .............................. 5,334,875
104,100 Wells Fargo Co. ...................................... 4,782,094
------------
165,471,815
------------
INDUSTRIAL -- 0.28%
58,600 Textron, Inc. ........................................ 2,702,925
------------
RAW/INTERMEDIATE
MATERIALS -- 0.67%
30,000 Air Products & Chemicals, Inc. ....................... 1,080,000
145,000 Alcan Aluminum Ltd. .................................. 4,195,938
30,000 PPG Industries, Inc. ................................. 1,190,625
------------
6,466,563
------------
</TABLE>
See Notes to Financial Statements
9
<PAGE>
Excelsior Funds, Inc.
Portfolio of Investments September 30, 2000 (Unaudited)
Blended Equity Fund -- (continued)
<TABLE>
<CAPTION>
Value
Shares (Note 1)
------ ------------
<C> <S> <C>
COMMON STOCKS -- (continued)
TECHNOLOGY -- 28.17%
32,000 +Applied Materials, Inc. ............................. $ 1,896,000
208,290 +AT&T Corp. -- Liberty Media Group, Class A........... 3,749,220
7,692 +Broadcom Corp., Class A.............................. 1,874,925
10,929 +Brocade Communications Systems, Inc. ................ 2,580,610
820,718 +Cisco Systems, Inc. ................................. 45,344,669
24,096 +Commerce One, Inc. .................................. 1,891,536
18,600 Corning, Inc. ........................................ 5,524,200
180,000 +Dell Computer Corp. ................................. 5,535,000
114,000 +EMC Corp. ........................................... 11,300,250
86,700 +Global Crossing Ltd. ................................ 2,687,700
77,000 Hewlett-Packard Co. .................................. 7,469,000
9,375 +Inktomi Corp. ....................................... 1,068,750
600,000 Intel Corp. .......................................... 24,900,000
126,000 International Business Machines Corp. ................ 14,175,000
6,166 +JDS Uniphase Corp. .................................. 583,458
127,500 Lockheed Martin Corp. ................................ 4,202,400
186,640 Lucent Technologies, Inc. ............................ 5,704,185
400,980 +Microsoft Corp. ..................................... 24,184,106
72,414 Motorola, Inc. ....................................... 2,045,696
16,500 +Network Appliance, Inc. ............................. 2,101,688
288,000 Nokia Corp., Class A, ADR............................. 11,466,000
180,000 Nortel Networks Corp. ................................ 10,721,250
192,000 +Oracle Corp. ........................................ 15,120,000
50,096 +QUALCOMM, Inc. ...................................... 3,569,340
113,300 +Qwest Communications International, Inc. ............ 5,445,481
20,000 RadioShack Corp. ..................................... 1,292,500
50,000 +SDL, Inc. ........................................... 15,487,500
148,308 +Sun Microsystems, Inc. .............................. 17,444,728
232,000 Texas Instruments, Inc. .............................. 10,947,500
18,959 +VERITAS Software Corp. .............................. 2,699,288
30,000 Williams Cos., Inc. .................................. 1,267,500
316,500 +WorldCom, Inc. ...................................... 9,613,688
------------
273,893,168
------------
</TABLE>
<TABLE>
<CAPTION>
Value
Shares (Note 1)
------ ------------
<C> <S> <C>
COMMON STOCKS -- (continued)
TRANSPORTATION -- 0.25%
113,600 Burlington Northern Santa Fe Corp................... $ 2,449,500
------------
UTILITIES -- 1.60%
160,000 +AES Corp. ......................................... 10,960,000
60,000 Ameren Corp. ....................................... 2,512,500
24,022 Enron Corp. ........................................ 2,104,928
------------
15,577,428
------------
TOTAL COMMON STOCKS
(Cost $476,905,934)................................ 965,712,609
------------
</TABLE>
<TABLE>
<CAPTION>
Principal
Amount
----------
<C> <S> <C>
DEMAND NOTES -- 0.77%
$3,700,000 Associates Corp. of North America Master Notes.......... 3,700,000
3,806,000 General Electric Co. Promissory Notes................... 3,806,000
---------
TOTAL DEMAND NOTES
(Cost $7,506,000)...................................... 7,506,000
---------
</TABLE>
<TABLE>
<S> <C> <C>
TOTAL INVESTMENTS
(Cost $484,411,934*)...................................... 100.10% $973,218,609
OTHER ASSETS AND LIABILITIES (NET)........................ (0.10) (942,962)
------ ------------
NET ASSETS................................................ 100.00% $972,275,647
====== ============
</TABLE>
--------
* Aggregate cost for Federal tax and book purposes.
+ Non-income producing security
ADR -- American Depositary Receipt
See Notes to Financial Statements
10
<PAGE>
Excelsior Funds, Inc.
Portfolio of Investments September 30, 2000 (Unaudited)
Large Cap Growth Fund
<TABLE>
<CAPTION>
Shares Value
(Note 1)
------------
<C> <S> <C>
COMMON STOCKS -- 96.64%
COMMUNICATIONS SERVICES -- 8.26%
423,000 +America Online, Inc............................... $ 22,736,250
352,000 +Exodus Communications, Inc....................... 17,402,000
------------
40,138,250
------------
CONSUMER CYCLICAL -- 11.45%
193,800 +Clear Channel Communications, Inc................. 10,949,700
291,200 Harley-Davidson, Inc............................... 13,941,200
422,550 Home Depot, Inc.................................... 22,421,559
114,000 Omnicom Group, Inc................................. 8,314,875
------------
55,627,334
------------
FINANCIAL -- 14.63%
298,125 American International Group, Inc.................. 28,526,836
472,666 Citigroup, Inc..................................... 25,553,506
186,000 Morgan Stanley Dean Witter & Co.................... 17,007,375
------------
71,087,717
------------
HEALTH CARE -- 14.81%
65,000 +Genentech, Inc. .................................. 12,069,688
454,200 Medtronic, Inc. ................................... 23,533,237
116,000 PE Corp. -- PE Biosystems Group................... 13,514,000
507,850 Pfizer, Inc........................................ 22,821,509
------------
71,938,434
------------
TECHNOLOGY -- 47.49%
448,000 +Cisco Systems, Inc................................ 24,752,000
510,600 +Dell Computer Corp................................ 15,700,950
432,000 +EMC Corp.......................................... 42,822,000
448,600 Intel Corp......................................... 18,616,900
199,000 +JDS Uniphase Corp................................. 18,830,375
253,900 +Microsoft Corp.................................... 15,313,344
512,800 Nokia Corp., Class A, ADR.......................... 20,415,850
126,000 Nortel Networks Corp. ............................. 7,504,875
363,600 +Solectron Corp.................................... 16,771,050
245,000 +Sun Microsystems, Inc. ........................... 28,818,125
170,000 Texas Instruments, Inc............................. 8,021,875
65,000 +VeriSign, Inc..................................... 13,166,563
------------
230,733,907
------------
TOTAL COMMON STOCKS (Cost $309,242,929)............ 469,525,642
------------
</TABLE>
<TABLE>
<CAPTION>
Principal Value
Amount (Note 1)
------------ ------------
<C> <S> <C>
REPURCHASE AGREEMENT -- 3.82%
$18,555,000 Agreement with Chase Securities, Inc., 6.25% dated
9/29/00, due 10/02/00, to be repurchased at
$18,564,664, collateralized by $14,575,000
Federal Home Loan Mortgage Corp., 7.875% due
8/15/17, valued at $18,972,056
(Cost $18,555,000)............................... $ 18,555,000
------------
</TABLE>
<TABLE>
<S> <C> <C>
TOTAL INVESTMENTS
(Cost $327,797,929*)..................................... 100.46% $488,080,642
OTHER ASSETS AND LIABILITIES (NET)........................ (0.46) (2,223,688)
------ ------------
NET ASSETS................................................ 100.00% $485,856,954
====== ============
</TABLE>
--------
* Aggregate cost for Federal tax and book purposes.
+ Non-income producing security
ADR -- American Depositary Receipt
See Notes to Financial Statements
11
<PAGE>
Excelsior Institutional Trust
Portfolio of Investments September 30, 2000 (Unaudited)
Optimum Growth Fund
<TABLE>
<CAPTION>
Value
Shares (Note 1)
---------- ------------
<C> <S> <C>
COMMON STOCKS -- 96.93%
CAPITAL GOODS -- 4.67%
82,200 General Electric Co. ................................ $ 4,741,913
------------
COMMUNICATIONS SERVICES -- 6.01%
76,000 +America Online, Inc. ............................... 4,085,000
33,800 +Exodus Communications, Inc. ........................ 1,670,987
3,000 +VoiceStream Wireless Corp. ......................... 348,188
------------
6,104,175
------------
CONSUMER CYCLICAL -- 12.04%
5,000 Abbott Laboratories.................................. 237,813
4,500 +Best Buy Co., Inc. ................................. 286,312
25,000 +Clear Channel Communications, Inc. ................. 1,412,500
3,500 +DoubleClick, Inc. .................................. 112,000
18,000 Dow Jones & Co., Inc. ............................... 1,089,000
7,500 +General Motors Corp., Class H....................... 278,850
40,000 Harley-Davidson, Inc. ............................... 1,915,000
72,000 Home Depot, Inc. .................................... 3,820,500
5,000 Johnson & Johnson Co. ............................... 469,687
13,200 Omnicom Group, Inc. ................................. 962,775
34,000 Wal-Mart Stores, Inc. ............................... 1,636,250
------------
12,220,687
------------
CONSUMER STAPLES -- 0.38%
7,000 Coca-Cola Co. ....................................... 385,875
------------
ENERGY -- 1.59%
7,500 Apache Corp. ........................................ 443,438
8,000 +BJ Services Co. .................................... 489,000
7,500 Diamond Offshore Drilling, Inc. ..................... 307,500
7,500 +Noble Drilling Corp. ............................... 376,875
------------
1,616,813
------------
FINANCIAL -- 9.07%
37,500 American International Group, Inc. .................. 3,588,281
70,000 Citigroup, Inc. ..................................... 3,784,375
20,000 Morgan Stanley Dean Witter & Co. .................... 1,828,750
------------
9,201,406
------------
HEALTH CARE -- 14.56%
9,500 American Home Products Corp. ........................ 537,344
14,000 +Amgen, Inc. ........................................ 975,625
6,500 +Biogen, Inc. ....................................... 396,500
8,500 +Genentech, Inc. .................................... 1,578,344
5,500 +Immunex Corp. ...................................... 239,250
5,500 +MedImmune, Inc. .................................... 424,875
83,710 Medtronic, Inc. ..................................... 4,337,224
13,500 PE Corp. -- PE Biosystems Group...................... 1,572,750
81,000 Pfizer, Inc. ........................................ 3,639,937
23,200 Schering-Plough Corp. ............................... 1,078,800
------------
14,780,649
------------
</TABLE>
<TABLE>
<CAPTION>
Value
Shares (Note 1)
---------- ------------
<C> <S> <C>
COMMON STOCKS -- (continued)
TECHNOLOGY -- 48.61%
24,500 +Applied Materials, Inc. ............................ $ 1,451,625
3,900 +Broadcom Corp., Class A............................. 950,625
2,400 +Brocade Communications Systems, Inc. ............... 566,700
83,000 +Cisco Systems, Inc. ................................ 4,585,750
103,000 +Dell Computer Corp. ................................ 3,167,250
87,800 +EMC Corp. .......................................... 8,703,175
1,000 Hewlett-Packard Co. ................................. 97,000
2,000 +Inktomi Corp. ...................................... 228,000
84,200 Intel Corp. ......................................... 3,494,300
20,000 +JDS Uniphase Corp. ................................. 1,892,500
3,500 +Juniper Networks, Inc. ............................. 766,500
45,000 +Microsoft Corp. .................................... 2,714,062
88,000 Nokia Corp., Class A, ADR............................ 3,503,500
20,000 Nortel Networks Corp. ............................... 1,191,250
33,000 +Oracle Corp. ....................................... 2,598,750
5,200 +PMC-Sierra, Inc. ................................... 1,119,300
12,000 +QUALCOMM, Inc. ..................................... 855,000
3,200 +Redback Networks, Inc. ............................. 527,000
6,600 +Siebel Systems, Inc. ............................... 734,250
36,000 +Solectron Corp. .................................... 1,660,500
33,000 +Sun Microsystems, Inc. ............................. 3,881,625
27,000 Texas Instruments, Inc. ............................. 1,274,063
10,000 +VeriSign, Inc. ..................................... 2,025,625
7,200 +VERITAS Software Corp. ............................. 1,025,100
3,500 +Yahoo!, Inc. ....................................... 319,594
------------
49,333,044
------------
TOTAL COMMON STOCKS
(Cost $53,647,812).................................. 98,384,562
------------
<CAPTION>
Principal
Amount
---------
<C> <S> <C>
DEMAND NOTES -- 3.37%
$3,419,000 Associates Corp. of North America Master Notes
(Cost $3,419,000)................................... 3,419,000
------------
</TABLE>
<TABLE>
<S> <C> <C>
TOTAL INVESTMENTS
(Cost
$57,066,812*)..... 100.30% $101,803,562
OTHER ASSETS AND LIABILITIES
(NET)............. (0.30) (303,833)
------ ------------
NET ASSETS......... 100.00% $101,499,729
====== ============
</TABLE>
--------
* Aggregate cost for Federal tax and book purposes.
+ Non-income producing security
ADR -- American Depositary Receipt
See Notes to Financial Statements
12
<PAGE>
Excelsior Funds, Inc.
Portfolio of Investments September 30, 2000 (Unaudited)
Small Cap Fund
<TABLE>
<CAPTION>
Value
Shares (Note 1)
---------- ------------
<C> <S> <C>
COMMON STOCKS -- 93.22%
CAPITAL GOODS -- 6.68%
80,000 +Optimal Robotics Corp............................... $ 3,215,000
83,000 Pentair, Inc......................................... 2,220,250
84,700 Teleflex, Inc........................................ 2,911,562
------------
8,346,812
------------
CONSUMER CYCLICAL -- 2.92%
132,200 +24/7 Media, Inc..................................... 1,330,262
135,750 +Rayovac Corp........................................ 2,324,719
------------
3,654,981
------------
CONSUMER STAPLES -- 6.97%
110,150 Dreyer's Grand Ice Cream, Inc........................ 2,326,919
182,825 +Hain Celestial Group, Inc........................... 6,376,022
------------
8,702,941
------------
ENERGY -- 3.20%
39,250 +Patterson Energy, Inc............................... 1,341,859
58,500 Tidewater, Inc....................................... 2,661,750
------------
4,003,609
------------
FINANCIAL -- 15.71%
86,300 Cullen/Frost Bankers, Inc............................ 2,804,750
75,000 E.W. Blanch Holdings, Inc............................ 1,556,250
135,000 Healthcare Realty Trust, Inc......................... 2,851,875
35,000 Hilb, Rogal & Hamilton Co............................ 1,459,063
89,350 +Silicon Valley Bancshares........................... 5,204,638
79,500 StanCorp Financial Group, Inc........................ 3,398,625
86,200 Valley National Bancorp.............................. 2,354,337
------------
19,629,538
------------
HEALTH CARE -- 14.51%
74,600 +AmeriSource Health Corp., Class A................... 3,506,200
25,000 Arthrocare Corp...................................... 485,938
30,000 +Hyseq, Inc.......................................... 1,095,000
109,700 +Intuitive Surgical, Inc............................. 1,275,262
39,000 +Lexicon Genetics, Inc............................... 1,226,063
20,800 +Maxim Pharmaceuticals, Inc.......................... 1,263,600
34,000 +Orchid Biosciences, Inc............................. 1,151,750
48,000 +PRAECIS Pharmaceuticals, Inc........................ 2,064,000
86,963 +Province Healthcare Co.............................. 3,473,065
101,900 +Ventana Medical Systems, Inc........................ 2,585,713
------------
18,126,591
------------
RAW/INTERMEDIATE MATERIALS -- 3.15%
142,000 Caraustar Industries, Inc............................ 1,562,000
160,200 Millennium Chemicals, Inc............................ 2,372,962
------------
3,934,962
------------
RETAIL -- 1.23%
65,000 +Too, Inc............................................ 1,543,750
------------
</TABLE>
<TABLE>
<CAPTION>
Value
Shares (Note 1)
---------- ------------
<C> <S> <C>
COMMON STOCKS -- (continued)
TECHNOLOGY -- 28.41%
90,200 +American Xtal Technology, Inc....................... $ 3,765,850
373,200 +Cambridge Technology Partners, Inc.................. 1,632,750
116,750 +Caminus Corp........................................ 4,611,625
75,000 +ChipPAC, Inc........................................ 862,500
97,250 +Dendrite International, Inc......................... 2,601,437
21,650 +Exchange Applications, Inc.......................... 97,425
41,000 +Finisar Corp........................................ 1,980,813
83,800 +Hyperion Solutions Corp............................. 2,157,850
125,525 +Integrated Circuit Systems, Inc..................... 2,322,212
49,150 +Manugistics Group, Inc.............................. 4,822,844
555,600 +Navigant Consulting, Inc............................ 1,909,875
10,600 +SDL, Inc............................................ 3,283,350
38,400 +Spectra-Physics Lasers, Inc......................... 2,054,400
260,000 +SynQuest, Inc....................................... 3,396,250
1 Timberline Software Corp............................. 6
------------
35,499,187
------------
TELECOMMUNICATION -- 10.44%
39,000 +hi/fn, Inc.......................................... 2,656,875
151,100 Inter-Tel, Inc....................................... 1,718,763
117,300 +Multex.com, Inc..................................... 2,008,762
40,400 +Natural MicroSystems Corp........................... 2,171,500
60,000 +Packeteer, Inc...................................... 2,276,250
95,200 +PC-Tel, Inc......................................... 2,219,350
------------
13,051,500
------------
TOTAL COMMON STOCKS
(Cost $99,584,049).................................. 116,493,871
------------
</TABLE>
<TABLE>
<CAPTION>
Principal
Amount
----------
<C> <S> <C>
DEMAND NOTES -- 8.12%
$5,100,000 Associates Corp. of North America Master Notes....... 5,100,000
5,043,000 General Electric Co. Promissory Notes................ 5,043,000
------------
TOTAL DEMAND NOTES
(Cost $10,143,000).................................. 10,143,000
------------
</TABLE>
<TABLE>
<S> <C> <C>
TOTAL INVESTMENTS
(Cost $109,727,049*)...................................... 101.34% $126,636,871
OTHER ASSETS AND LIABILITIES (NET)......................... (1.34) (1,669,036)
------ ------------
NET ASSETS................................................. 100.00% $124,967,835
====== ============
</TABLE>
--------
* Aggregate cost for Federal tax and book purposes.
+ Non-income producing security
See Notes to Financial Statements
13
<PAGE>
Excelsior Funds, Inc.
Portfolio of Investments September 30, 2000 (Unaudited)
Value and Restructuring Fund
<TABLE>
<CAPTION>
Value
Shares (Note 1)
---------- ------------
<C> <S> <C>
COMMON STOCKS -- 98.12%
CAPITAL GOODS -- 3.00%
2 Delphi Automotive Systems Corp. ..................... $ 30
560,000 Honeywell International, Inc. ....................... 19,950,000
365,000 United Technologies Corp. ........................... 25,276,250
------------
45,226,280
------------
COMMUNICATIONS SERVICES -- 3.51%
425,000 AT&T Corp. .......................................... 12,484,375
510,000 CenturyTel, Inc. .................................... 13,897,500
860,000 +Global Crossing Ltd. ............................... 26,660,000
------------
53,041,875
------------
CONSUMER CYCLICAL -- 22.83%
475,000 +Adelphia Communications Corp., Class A.............. 13,092,188
715,000 Black & Decker Corp. ................................ 24,444,062
760,000 Centex Corp. ........................................ 24,415,000
900,000 +Charter Communications, Inc., Class A............... 14,512,500
485,000 Deluxe Corp. ........................................ 9,851,563
640,000 +Ford Motor Co. ..................................... 16,200,000
218,026 General Motors Corp. ................................ 14,171,690
1,348,006 +General Motors Corp., Class H....................... 50,118,863
513,000 Harman International Industries, Inc. ............... 20,058,300
710,000 +Infinity Broadcasting Corp., Class A................ 23,430,000
354,300 Lennox International, Inc. .......................... 3,321,563
600,000 News Corp., Ltd. ADR................................. 33,637,500
800,000 +Paxson Communications Corp. ........................ 9,200,000
385,000 PPG Industries, Inc. ................................ 15,279,687
185,000 Time Warner, Inc. ................................... 14,476,250
685,000 TJX Companies, Inc. ................................. 15,412,500
510,000 +Viacom, Inc., Class B............................... 29,835,000
500,000 Viad Corp. .......................................... 13,281,250
1 Visteon Corp. ....................................... 15
------------
344,737,931
------------
CONSUMER STAPLES -- 6.04%
1,420,000 +AT&T Corp. -- Liberty Media Group, Class A.......... 25,560,000
625,000 Avon Products, Inc. ................................. 25,546,875
735,000 Conagra, Inc. ....................................... 14,745,937
500,000 +Suiza Foods Corp. .................................. 25,343,750
------------
91,196,562
------------
ENERGY -- 4.25%
625,000 Conoco, Inc., Class B................................ 16,835,938
545,100 Dynergy, Inc. ....................................... 31,070,700
1,050,000 +Ocean Energy, Inc. ................................. 16,209,375
------------
64,116,013
------------
</TABLE>
<TABLE>
<CAPTION>
Value
Shares (Note 1)
---------- ------------
<C> <S> <C>
COMMON STOCKS -- (continued)
FINANCIAL -- 23.28%
240,000 Amvescap plc ADR..................................... $ 26,610,000
620,000 Chase Manhattan Corp. ............................... 28,636,250
600,000 Citigroup, Inc. ..................................... 32,437,500
505,000 Donaldson, Lufkin & Jenrette, Inc. .................. 45,165,937
250,000 Fannie Mae........................................... 17,875,000
775,000 Golden State Bancorp, Inc. .......................... 18,309,375
575,000 Mellon Financial Corp. .............................. 26,665,625
425,000 +Metlife, Inc. ...................................... 11,129,688
375,000 Morgan Stanley Dean Witter & Co. .................... 34,289,062
450,000 PNC Bank Corp. ...................................... 29,250,000
810,000 +Stilwell Financial, Inc. ........................... 35,235,000
350,000 USA Education, Inc. ................................. 16,865,625
325,000 Washington Mutual, Inc. ............................. 12,939,063
220,000 XL Capital Ltd., Class A............................. 16,170,000
------------
351,578,125
------------
HEALTH CARE -- 5.77%
415,000 American Home Products Corp. ........................ 23,473,438
801,000 +AmeriSource Health Corp.,
Class A.............................................. 37,647,000
455,000 Bristol-Myers Squibb Co. ............................ 25,991,875
------------
87,112,313
------------
INDUSTRIAL -- 0.43%
300,000 Lafarge Corp. ....................................... 6,525,000
------------
RAW/INTERMEDIATE MATERIALS -- 1.68%
465,000 Cambrex Corp. ....................................... 17,205,000
280,000 Rohm & Haas Co. ..................................... 8,137,500
------------
25,342,500
------------
TECHNOLOGY -- 22.41%
250,000 Alcatel Alsthom ADR.................................. 15,718,750
275,000 BCE, Inc. ........................................... 6,428,125
20,000 BCE, Inc. ........................................... 465,224
350,000 +Commscope, Inc. .................................... 8,575,000
600,000 Georgia-Pacific Group................................ 14,100,000
700,000 Harris Corp. ........................................ 19,906,250
750,000 IMS Health, Inc. .................................... 15,562,500
285,000 International Business Machines Corp. ............... 32,062,500
875,000 Nokia Corp., Class A, ADR............................ 34,835,938
31,408 Nortel Networks Corp. ............................... 1,883,254
329,511 Nortel Networks Corp. ............................... 19,626,499
660,000 +Plantronics, Inc. .................................. 25,080,000
550,000 +QUALCOMM, Inc. ..................................... 39,187,500
350,000 Raytheon Co., Class A................................ 9,581,250
754,971 Sensormatic Electronics Corp. ....................... 11,324,561
840,000 Texas Instruments, Inc. ............................. 39,637,500
1,300,000 +Unisys Corp. ....................................... 14,625,000
970,000 +Vishay Intertechnology, Inc. ....................... 29,827,500
------------
338,427,351
------------
</TABLE>
See Notes to Financial Statements
14
<PAGE>
Excelsior Funds, Inc.
Portfolio of Investments September 30, 2000 (Unaudited)
Value and Restructuring Fund -- (continued)
<TABLE>
<CAPTION>
Value
Shares (Note 1)
---------- --------------
<C> <S> <C>
COMMON STOCKS - (continued)
TRANSPORTATION -- 3.30%
480,000 +AMR Corp. ....................................... $ 15,690,000
645,000 CNF Transportation, Inc. ......................... 14,351,250
510,000 Union Pacific Corp. .............................. 19,826,250
--------------
49,867,500
--------------
UTILITIES -- 1.62%
285,000 Duke Energy Corp. ................................ 24,438,750
--------------
TOTAL COMMON STOCKS
(Cost $1,080,983,886)............................. 1,481,610,200
--------------
CONVERTIBLE PREFERRED STOCKS -- 0.37%
TECHNOLOGY -- 0.37%
260,000 ++Sensormatic Electronics Corp., Preferred
Exchange, 6.50% (Cost $6,570,695)................. 5,622,500
--------------
</TABLE>
<TABLE>
<CAPTION>
Principal Value
Amount (Note 1)
----------- --------------
<C> <S> <C>
DEMAND NOTES -- 2.84%
$21,400,000 Associates Corp. of North America Master Notes.... $ 21,400,000
21,465,000 General Electric Co. Promissory Notes............. 21,465,000
--------------
TOTAL DEMAND NOTES
(Cost $42,865,000)................................ 42,865,000
--------------
</TABLE>
<TABLE>
<S> <C> <C>
TOTAL INVESTMENTS
(Cost $1,130,419,581*).................................. 101.33% $1,530,097,700
OTHER ASSETS AND LIABILITIES (NET)...................... (1.33) (20,080,696)
------ --------------
NET ASSETS.............................................. 100.00% $1,510,017,004
====== ==============
</TABLE>
--------
* Aggregate cost for Federal tax and book purposes.
+ Non-income producing security
++ 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,
2000, these securities amounted to $5,622,500 or 0.37% of net assets.
ADR -- American Depositary Receipt
See Notes to Financial Statements
15
<PAGE>
Excelsior Institutional Trust
Portfolio of Investments September 30, 2000 (Unaudited)
Value Equity Fund
<TABLE>
<CAPTION>
Value
Shares (Note 1)
---------- ------------
<C> <S> <C>
COMMON STOCKS -- 99.35%
COMMUNICATIONS SERVICES -- 4.04%
60,100 +Global Crossing Ltd................................. $ 1,863,100
------------
CONSUMER CYCLICAL -- 32.85%
60,000 +Adelphia Communications Corp., Class A.............. 1,653,750
42,000 Black & Decker Corp.................................. 1,435,875
65,000 Centex Corp.......................................... 2,088,125
50,000 +General Motors Corp.,
Class H............................................. 1,859,000
55,000 Polaris Industries, Inc.............................. 1,938,750
70,000 Sherwin-Williams Co.................................. 1,496,250
100,000 TJX Companies, Inc................................... 2,250,000
55,000 Viad Corp............................................ 1,460,937
19,700 Young & Rubicam, Inc................................. 975,150
------------
15,157,837
------------
CONSUMER STAPLES -- 18.03%
91,520 +AT&T Corp. -- Liberty Media Group, Class A.......... 1,647,360
42,000 Avon Products, Inc................................... 1,716,750
87,000 IMS Health, Inc...................................... 1,805,250
32,000 +Suiza Foods Corp.................................... 1,622,000
70,000 +USA Networks, Inc................................... 1,531,250
------------
8,322,610
------------
ENERGY -- 9.28%
22,000 Conoco, Inc., Class B................................ 592,625
100,000 +Ocean Energy, Inc................................... 1,543,750
2,500 +Proton Energy Systems, Inc.......................... 71,562
15,000 +Southern Energy, Inc................................ 470,625
38,000 Williams Cos., Inc................................... 1,605,500
------------
4,284,062
------------
FINANCIAL -- 17.45%
20,000 Donaldson, Lufkin & Jenrette, Inc.................... 1,788,750
11,000 Lehman Brothers Holdings, Inc........................ 1,625,250
40,000 +Stilwell Financial, Inc............................. 1,740,000
22,000 USA Education, Inc................................... 1,060,125
25,000 XL Capital Ltd., Class A............................. 1,837,500
------------
8,051,625
------------
RAW/INTERMEDIATE MATERIALS -- 3.00%
80,000 Tredegar Corp........................................ 1,385,000
------------
TECHNOLOGY -- 14.70%
85,000 +BMC Software, Inc................................... 1,620,313
1,700 +Durect Corp......................................... 25,500
57,000 Harris Corp.......................................... 1,620,938
2,908 Intermedia Communications, Inc....................... 85,604
25,000 +Plantronics, Inc.................................... 950,000
</TABLE>
<TABLE>
<CAPTION>
Value
Shares (Note 1)
---------- ------------
<C> <S> <C>
COMMON STOCKS -- (continued)
TECHNOLOGY - (continued)
20,000 Texas Instruments, Inc............................... $ 943,750
50,000 +Vishay Intertechnology, Inc......................... 1,537,500
------------
6,783,605
------------
TOTAL COMMON STOCKS
(Cost $37,880,670).................................. 45,847,839
------------
</TABLE>
<TABLE>
<CAPTION>
Principal
Amount
---------
<C> <S> <C>
CONVERTIBLE BONDS -- 1.81%
TECHNOLOGY -- 1.81%
Intermedia Communications,
$22,000 Inc. (Cost $578,407)..................................... 836,000
---------
DEMAND NOTES -- 0.02%
General Electric Co. Promissory
6,000 Notes (Cost $6,000)...................................... 6,000
---------
</TABLE>
<TABLE>
<S> <C> <C>
TOTAL INVESTMENTS
(Cost $38,465,077*)........................................ 101.18% $46,689,839
OTHER ASSETS AND LIABILITIES (NET)......................... (1.18) (542,375)
------ -----------
NET ASSETS................................................. 100.00% $46,147,464
====== ===========
</TABLE>
--------
* Aggregate cost for Federal tax and book purposes.
+ Non-income producing security
See Notes to Financial Statements
16
<PAGE>
Excelsior Funds, Inc.
Portfolio of Investments September 30, 2000 (Unaudited)
Energy and Natural Resources Fund
<TABLE>
<CAPTION>
Value
Shares (Note 1)
---------- ------------
<C> <S> <C>
COMMON STOCKS -- 94.08%
BASIC MATERIALS -- 0.71%
24,000 Willamette Industries, Inc........................... $ 672,000
------------
ENERGY -- 74.69%
59,200 Anadarko Petroleum Corp. ............................ 3,934,432
70,000 Baker Hughes, Inc. .................................. 2,598,750
25,000 +BJ Services Co. .................................... 1,528,125
62,140 BP Amoco plc ADR..................................... 3,293,420
40,000 Burlington Resources, Inc. .......................... 1,472,500
25,000 Chevron Corp. ....................................... 2,131,250
80,000 +Chiles Offshore, Inc. .............................. 1,730,000
50,000 CMS Energy Corp. .................................... 1,346,875
50,000 Conoco, Inc., Class B................................ 1,349,875
25,000 +Cooper Cameron Corp. ............................... 1,842,188
37,500 Cross Timbers Oil Co. ............................... 719,531
75,000 +EEX Corp. .......................................... 365,625
50,000 El Paso Energy Corp. ................................ 3,081,250
49,762 Exxon Mobil Corp. ................................... 4,435,038
130,000 +Global Industries Ltd. ............................. 1,616,875
175,000 +Grey Wolf, Inc. .................................... 1,006,250
55,000 +Nabors Industries, Inc. ............................ 2,882,000
191,630 +Ocean Energy, Inc. ................................. 2,958,288
45,000 +Patterson Energy, Inc. ............................. 1,538,438
95,000 +Pennaco Energy, Inc. ............................... 1,650,625
45,000 Phillips Petroleum Co. .............................. 2,823,750
25,000 +Precision Drilling Corp. ........................... 890,625
95,000 +R & B Falcon Corp. ................................. 2,648,125
55,000 +Rowan Cos., Inc. ................................... 1,595,000
54,000 Royal Dutch Petroleum Co. ........................... 3,236,625
55,000 Santa Fe International Corp. ........................ 2,478,437
24,000 Schlumberger Ltd. ................................... 1,975,500
50,000 Suncor Energy, Inc. ................................. 1,106,250
50,000 Sunoco, Inc. ........................................ 1,346,875
40,000 Texaco, Inc. ........................................ 2,100,000
76,000 Tosco Corp. ......................................... 2,370,250
4,646 Transocean Sedco Forex, Inc. ........................ 272,372
70,000 +Triton Energy Ltd. ................................. 2,730,000
55,000 Unocal Corp. ........................................ 1,949,062
30,000 +Weatherford International, Inc. .................... 1,290,000
------------
70,294,206
------------
RAW/INTERMEDIATE MATERIALS -- 6.28%
50,000 Alcoa, Inc. ......................................... 1,265,625
25,000 E.I. du Pont de Nemours & Co......................... 1,035,938
25,000 Newmont Mining Corp. ................................ 425,000
70,000 Tidewater, Inc....................................... 3,185,000
------------
5,911,563
------------
UTILITIES -- 12.40%
50,000 +AES Corp. .......................................... 3,425,000
30,000 +Calpine Corp. ...................................... 3,131,250
31,000 Enron Corp. ......................................... 2,716,375
</TABLE>
<TABLE>
<CAPTION>
Value
Shares (Note 1)
---------- ------------
<C> <S> <C>
COMMON STOCKS -- (continued)
UTILITIES -- (continued)
30,000 Montana Power Co. ................................... $ 1,001,250
33,000 Williams Cos., Inc. ................................. 1,394,250
------------
11,668,125
------------
TOTAL COMMON STOCKS
(Cost $62,845,912).................................. 88,545,894
------------
<CAPTION>
Principal
Amount
----------
<C> <S> <C>
DEMAND NOTES -- 11.88%
$5,600,000 Associates Corp. of
North America Master Notes........................... 5,600,000
5,583,000 General Electric Co.
Promissory Notes..................................... 5,583,000
------------
TOTAL DEMAND NOTES
(Cost $11,183,000).................................. 11,183,000
------------
</TABLE>
<TABLE>
<S> <C> <C>
TOTAL INVESTMENTS
(Cost $74,028,912*)........................................ 105.96% $99,728,894
OTHER ASSETS AND LIABILITIES (NET)......................... (5.96) (5,608,512)
------ -----------
NET ASSETS................................................. 100.00% $94,120,382
====== ===========
</TABLE>
--------
* Aggregate cost for Federal tax and book purposes.
+ Non-income producing security
ADR -- American Depositary Receipt
See Notes to Financial Statements
17
<PAGE>
Excelsior Funds, Inc.
Portfolio of Investments September 30, 2000 (Unaudited)
Real Estate Fund
<TABLE>
<CAPTION>
Value
Shares (Note 1)
------- ------------
<C> <S> <C>
COMMON STOCKS -- 93.57%
CONSUMER CYCLICAL -- 4.24%
118,800 Host Marriott Corp. .................................... $ 1,336,500
30,000 Universal Health Realty Income Trust.................... 530,625
------------
1,867,125
------------
REAL ESTATE -- 89.33%
33,000 Apartment Investment & Management Co. .................. 1,520,062
34,684 Avalonbay Communities, Inc. ............................ 1,653,993
63,000 Bedford Property Investors, Inc. ....................... 1,279,688
40,000 Boston Properties, Inc. ................................ 1,717,500
70,000 Cabot Industrial Trust.................................. 1,395,625
88,000 +Catellus Development Corp. ............................ 1,540,000
40,000 Chateau Communities, Inc. .............................. 1,072,500
40,000 Cousins Properties, Inc. ............................... 1,722,500
64,000 Duke Realty Investment, Inc. ........................... 1,544,000
57,703 Equity Office Properties Trust.......................... 1,792,399
29,860 Equity Residential Properties Trust..................... 1,433,280
53,000 First Washington Realty Trust........................... 1,344,875
30,000 Forest City Enterprises, Inc., Class A.................. 1,080,000
45,000 Health Care Property Investors, Inc. ................... 1,333,125
61,000 Healthcare Realty Trust, Inc. .......................... 1,288,625
42,000 Home Properties of New York, Inc. ...................... 1,254,750
49,000 Hospitality Properties Trust............................ 1,145,375
36,000 KIMCO Realty Corp. ..................................... 1,521,000
16,000 Mack-Cali Realty Corp. ................................. 451,000
52,000 Pacific Gulf Properties, Inc. .......................... 1,391,000
33,000 Post Properties, Inc. .................................. 1,437,563
70,000 ProLogis Trust.......................................... 1,662,500
51,200 Public Storage, Inc. ................................... 1,225,600
53,000 Simon Property Group, Inc. ............................. 1,242,188
30,000 Spieker Properties, Inc. ............................... 1,726,875
33,000 Starwood Hotels & Resorts Worldwide, Inc. .............. 1,031,250
60,000 Taubman Center, Inc. ................................... 693,750
38,000 Vornado Realty Trust.................................... 1,410,750
34,500 Weingarten Realty Investors............................. 1,405,875
------------
39,317,648
------------
TOTAL COMMON STOCKS
(Cost $39,053,066)...................................... 41,184,773
------------
</TABLE>
<TABLE>
<CAPTION>
Principal Value
Amount (Note 1)
---------- -----------
<C> <S> <C>
REPURCHASE AGREEMENT -- 5.43%
$2,389,000 Agreement with Chase Securities, Inc., 6.25% dated
9/29/00, due 10/02/00, to be repurchased at
$2,390,244, collateralized by $1,880,000 Federal Home
Loan Bank, 8.875% due 8/15/17, valued at $2,447,167
(Cost $2,389,000).................................... $ 2,389,000
-----------
</TABLE>
<TABLE>
<S> <C> <C>
TOTAL INVESTMENTS
(Cost $41,442,066*)........................................ 99.00% $43,573,773
OTHER ASSETS AND LIABILITIES
(NET)...................................................... 1.00 438,239
------ -----------
NET ASSETS................................................. 100.00% $44,012,012
====== ===========
</TABLE>
--------
* Aggregate cost for Federal tax and book purposes.
+ Non-income producing security
See Notes to Financial Statements
18
<PAGE>
Excelsior Funds, Inc.
Portfolio of Investments September 30, 2000 (Unaudited)
Technology Fund
<TABLE>
<CAPTION>
Value
Shares (Note 1)
------- ------------
<C> <S> <C>
COMMON STOCKS -- 95.85%
CAPITAL GOODS -- 0.46%
4,000 +OmniSky Corp........................................... $ 81,000
------------
COMMUNICATIONS SERVICES -- 10.16%
15,500 +America Online, Inc.................................... 833,125
100 +Corvis Corp............................................ 6,144
8,350 +Exodus Communications, Inc............................. 412,803
10,850 +Qwest Communications International, Inc................ 521,478
------------
1,773,550
------------
TECHNOLOGY -- 85.23%
7,100 +Applied Materials, Inc................................. 420,675
4,700 +BEA Systems, Inc....................................... 366,013
3,000 +Broadcom Corp., Class A................................ 731,250
1,700 +Brocade Communications Systems, Inc.................... 401,413
2,700 +CIENA Corp............................................. 331,425
14,150 +Cisco Systems, Inc..................................... 781,787
15,500 +Dell Computer Corp..................................... 476,625
9,150 +EMC Corp............................................... 906,994
3,050 +Inktomi Corp........................................... 347,700
18,500 Intel Corp.............................................. 767,750
7,000 +JDS Uniphase Corp...................................... 662,375
2,000 +Juniper Networks, Inc.................................. 438,000
9,600 +Microsoft Corp......................................... 579,000
1,000 +Network Engines, Inc................................... 40,938
20,350 Nokia Corp., Class A, ADR............................... 810,184
5,550 Nortel Networks Corp.................................... 330,572
6,300 +Oracle Corp. .......................................... 496,125
3,200 +PMC-Sierra, Inc........................................ 688,800
5,850 +QUALCOMM, Inc.......................................... 416,812
2,650 +Redback Networks, Inc.................................. 436,422
3,800 +Siebel Systems, Inc.................................... 422,750
11,650 +Solectron Corp......................................... 537,356
3,000 +StorageNetworks, Inc................................... 306,375
7,350 +Sun Microsystems, Inc.................................. 864,544
13,750 Texas Instruments, Inc.................................. 648,828
3,150 +VeriSign, Inc.......................................... 638,072
3,200 +VERITAS Software Corp.................................. 455,600
6,350 +Yahoo!, Inc............................................ 579,834
------------
14,884,219
------------
TOTAL COMMON STOCKS
(Cost $16,568,897)...................................... 16,738,769
------------
</TABLE>
<TABLE>
<CAPTION>
Principal Value
Amount (Note 1)
--------- -----------
<C> <S> <C>
DEMAND NOTES -- 8.57%
$700,000 Associates Corp. of North America Master Notes......... $ 700,000
797,000 General Electric Co. Promissory Notes.................. 797,000
-----------
TOTAL DEMAND NOTES
(Cost $1,497,000)...................................... 1,497,000
-----------
</TABLE>
<TABLE>
<S> <C> <C>
TOTAL INVESTMENTS
(Cost $18,065,897*)...................................... 104.42% $18,235,769
OTHER ASSETS AND LIABILITIES (NET)....................... (4.42) (772,138)
------ -----------
NET ASSETS............................................... 100.00% $17,463,631
====== ===========
</TABLE>
--------
* Aggregate cost for Federal tax and book purposes.
+ Non-income producing security
ADR--American Depositary Receipt
See Notes to Financial Statements
19
<PAGE>
EXCELSIOR FUNDS, INC.
EXCELSIOR INSTITUTIONAL TRUST
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. Excelsior Institutional Trust (the
"Trust") is a business trust organized under the laws of the State of Delaware
on May 11, 1994. Excelsior Fund and the Trust are registered under the
Investment Company Act of 1940 (the "1940 Act"), as amended, as open-ended
diversified management investment companies.
Excelsior Fund and the Trust currently offer shares in eighteen and seven
managed investment portfolios, respectively, each having its own investment
objectives and policies. The following is a summary of significant accounting
policies for the Blended Equity Fund, Large Cap Growth Fund, Small Cap Fund,
Value and Restructuring Fund, Energy and Natural Resources Fund, Real Estate
Fund, and Technology Fund, Portfolios of Excelsior Fund and Optimum Growth
Fund and Value Equity Fund, Portfolios of the Trust (the "Portfolios"). Such
policies are in conformity with generally accepted accounting principles and
are consistently followed by Excelsior Fund and the Trust 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.
With regard to Optimum Growth Fund and Value Equity Fund, they offer two
classes of shares: Institutional Shares and Shares. The Financial Highlights
of the Institutional Shares as well as the financial statements for the
remaining portfolios of Excelsior Fund, the Trust and Excelsior Tax-Exempt
Fund, Inc. ("Excelsior Tax-Exempt Fund") are presented separately. The
Technology Fund commenced operations on March 31, 2000.
(a) Portfolio valuation:
Investments in securities that are traded on a recognized domestic stock
exchange are valued at the last sale price on the exchange on which such
securities are primarily traded or at the last sale price on a national
securities market. Securities traded over-the-counter are valued each
business day on the basis of closing over-the-counter bid prices.
Securities for which there were no transactions are valued at the average
of the most recent bid and asked prices (as calculated by an independent
pricing service (the "Service") based upon its evaluation of the market for
such securities) when, in the judgment of the Service, quoted bid and asked
prices for securities are readily available and are representative of the
market. Bid price is used when no asked price is available. Investments in
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 is 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 with regard
to Excelsior Fund or the Board of Trustees with regard to the Trust. 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.
20
<PAGE>
All other foreign securities are valued at the last current bid quotation
if market quotations are available, or at fair value as determined in
accordance with policies established by the Board of Directors with regard
to Excelsior Fund or the Board of Trustees with regard to the Trust.
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 upon 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.
Securities for which market quotations are not readily available are
valued at fair value pursuant to guidelines adopted by the Board of
Directors with regard to Excelsior Fund or the Board of Trustees with
regard to the Trust. Short-term debt instruments with remaining maturities
of 60 days or less are valued at amortized cost, which approximates market
value.
Forward foreign currency exchange contracts: The Portfolios'
participation in forward foreign currency exchange contracts will be
limited to hedging involving either specific transactions or portfolio
positions. Transaction hedging involves the purchase or sale of foreign
currency with respect to specific receivables or payables of a Portfolio
generally arising in connection with the purchase or sale of its portfolio
securities. Risk may arise upon entering into these contracts from the
potential inability of counterparties to meet the terms of their contracts
and is generally limited to the amount of unrealized gain on the contracts,
if any, at the date of default. Risk may also arise from unanticipated
movements in the value of a foreign currency relative to the U.S. dollar.
Contracts are marked-to-market daily and the change in market value is
recorded as unrealized appreciation or depreciation. Realized gains or
losses arising from such transactions are included in net realized gains or
losses from foreign currency transactions.
Options Written: The Portfolios may write (sell) covered options as a
hedge to provide protection against adverse movements in the price of
securities in the Portfolio or to enhance investment performance. When a
Portfolio writes an option, an amount equal to the premium received by the
Portfolio is recorded as a liability and is subsequently adjusted on a
daily basis to the current market price of the option written. Premiums
received from writing options which expire unexercised are recognized as
gains on the expiration date. Premiums received from writing options which
are exercised or are canceled in closing purchase transactions are offset
against the cost of any securities purchased or added to the proceeds or
netted against the amount paid on the transaction to determine the realized
gain or loss. In writing options, a Portfolio must assume that the option
may be exercised at any time prior to the expiration of its obligation as a
writer, and that in such circumstances the net proceeds of the sale or cost
of purchase of the underlying securities and currencies pursuant to the
call or put option may be substantially below or above the prevailing
market price. A Portfolio also has the additional risk of not being able to
enter into a closing purchase transaction if a liquid secondary market does
not exist and bears the risk of unfavorable changes in the price of the
financial instruments underlying the options.
21
<PAGE>
At September 30, 2000, the Value and Restructuring Fund had the following
option transactions:
<TABLE>
<CAPTION>
Number of
Written Option Transactions Contracts Premiums
--------------------------------------------------------------------------------
<S> <C> <C>
Outstanding, beginning of period......................... 1,000 $ 1,365,704
Options exercised........................................ 1,000 (1,365,704)
----- -----------
Outstanding, end of period............................... -- $ --
===== ===========
</TABLE>
(b) Security transactions and investment income:
Security transactions are recorded on a trade date basis. Realized gains and
losses on investments sold are recorded on the basis of identified cost.
Interest income, adjusted for amortization of premiums and, when appropriate,
discounts on investments, is 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:
The Portfolios may purchase portfolio securities from financial institutions
deemed to be creditworthy by the investment adviser subject to the seller's
agreement to repurchase and the Portfolios' agreement to resell such
securities at mutually agreed upon prices. Securities purchased subject to
such repurchase agreements are deposited with the Portfolios' 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, the Portfolios 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 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 equal to all or substantially all of each Portfolio's net
investment income are declared and paid quarterly. Net realized capital gains,
unless offset by any available capital loss carryforward, are distributed to
shareholders at least annually, but the Portfolios may make distributions on a
more frequent basis to comply with the distribution requirements of the
Internal Revenue Code. 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
net operating losses, foreign currency transactions, partnership income,
deferral of losses on wash sales, dividends received from real estate
investment trusts (REITs) and net capital losses and net currency losses
incurred after October 31 and within the taxable year ("Post-October losses").
Due to the nature of distributions that the Real Estate Fund receives from
REITs, the Real Estate Fund anticipates that it will have a tax basis return
of capital.
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.
22
<PAGE>
(e) Federal taxes:
It is the policy of Excelsior Fund and the Trust that each Portfolio 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, 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 Expiration Date
March 31, March 31,
2007 2008
--------------- ---------------
<S> <C> <C>
Large Cap Growth................................ $1,733,000 $11,322,000
Value & Restructuring........................... 3,476,000 16,725,000
</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 is as follows:
<TABLE>
<CAPTION>
Tax Basis Tax Basis Net Unrealized
Unrealized Unrealized Appreciation
Appreciation (Depreciation) (Depreciation)
------------ -------------- --------------
<S> <C> <C> <C>
Blended Equity Fund................. $503,761,741 $(14,955,066) $488,806,675
Large Cap Growth Fund............... 172,832,783 (12,550,070) 160,282,713
Optimum Growth Fund................. 46,685,165 (1,948,415) 44,736,750
Small Cap Fund...................... 30,516,420 (13,606,598) 16,909,822
Value and Restructuring Fund........ 470,752,612 (71,074,493) 399,678,119
Value Equity Fund................... 10,058,046 (1,833,284) 8,224,762
Energy and Natural Resources Fund... 27,171,337 (1,471,355) 25,699,982
Real Estate Fund.................... 3,498,095 (1,366,388) 2,131,707
Technology Fund..................... 2,089,771 (1,919,899) 169,872
</TABLE>
(f) Expense allocation:
Expenses incurred by Excelsior Fund and the Trust with respect to any two or
more of their respective Portfolios are allocated in proportion to the average
net assets of each of their respective Portfolios, except where allocations of
direct expenses to each Portfolio can otherwise be fairly made. Expenses
directly attributable to a Portfolio are charged to that Portfolio and
expenses directly attributable to a particular class of shares in a Portfolio
are charged to such class.
2. Investment Advisory Fee, Administration Fee, Distribution Expenses 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,
computed daily and paid monthly, at the annual rates of 0.75% of the average
daily net assets of the Blended Equity Fund and Large Cap Growth Fund, 0.60%
of the average daily net assets of the Small
23
<PAGE>
Cap Fund, Value and Restructuring Fund and Energy and Natural Resources Fund,
1.00% of the average daily net assets of the Real Estate Fund and Technology
Fund, and 0.65% of the average daily net assets of each of the Optimum Growth
Fund and Value Equity 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 ("CGFSC"), a
corporate affiliate of The Chase Manhattan Bank and Federated Administrative
Services (collectively, the "Administrators") provide administrative services
to Excelsior Fund and the Trust. For the services provided to the Portfolios,
the Administrators are entitled jointly to annual fees, computed daily and
paid monthly, based on the combined aggregate average daily net assets of
Excelsior Fund, Excelsior Tax-Exempt Fund and Excelsior Institutional Trust
(excluding the international equity portfolios of Excelsior Fund and Excelsior
Institutional Trust) all of which are affiliated investment companies, as
follows: 0.200% of the first $200 million, 0.175% of the next $200 million,
and 0.150% over $400 million. Administration fees payable by each Portfolio of
the three investment companies are determined in proportion to the relative
average daily net assets of the respective Portfolios for the period paid. For
the six months ended September 30, 2000, administration fees charged by U.S.
Trust Company were as follows:
<TABLE>
<S> <C>
Blended Equity Fund................................................... $244,458
Large Cap Growth Fund................................................. 120,847
Optimum Growth Fund................................................... 25,367
Small Cap Fund........................................................ 28,072
Value and Restructuring Fund.......................................... 335,133
Value Equity Fund..................................................... 12,350
Energy and Natural Resources Fund..................................... 19,327
Real Estate Fund...................................................... 9,797
Technology Fund....................................................... 2,691
</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 the following annual percentages of each Portfolio's average daily
net assets: 1.05% for Blended Equity Fund, Large Cap Growth Fund, Shares of
Optimum Growth Fund and Shares of Value Equity Fund; 1.20% for Real Estate
Fund; 1.25% for Technology Fund; and .80% for Institutional Shares of Optimum
Growth Fund and Value Equity Fund. With regard to Value and Restructuring
Fund, Small Cap Fund, and Energy and Natural Resources 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
.99%. 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 for these Portfolios from exceeding the following annual percentages
of each Portfolio's average daily net assets: 1.05% for Small Cap Fund and
Value and Restructuring Fund; and 1.25% for Energy and Natural Resources Fund.
24
<PAGE>
For the six months ended September 30, 2000, pursuant to the above, U.S.
Trust waived investment advisory fees as follows:
<TABLE>
<S> <C>
Optimum Growth Fund..................................................... $52,005
Value Equity Fund....................................................... 39,796
Real Estate Fund........................................................ 18,462
Technology Fund......................................................... 18,042
</TABLE>
Excelsior Fund and the Trust have 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 0.40% of the average daily net asset
value of its shares held by the service organizations' customers. Such
services may include assisting in processing purchase, exchange and redemption
requests; transmitting and receiving funds in connection with customer orders
to purchase, exchange or redeem shares; and providing periodic statements.
Administrative service fees paid to affiliates of U.S. Trust amounted to
$831,407 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 administrative service fees 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 advisory and administrative
fees payable by each Portfolio in an amount equal to the administrative
service fee 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 follows:
<TABLE>
<CAPTION>
U.S.
Trust Administrators
-------- --------------
<S> <C> <C>
Blended Equity Fund..................................... $353,000 $ 3,387
Large Cap Growth Fund................................... 174,773 8,182
Optimum Growth Fund..................................... 3,894 690
Small Cap Fund.......................................... 99,882 74
Value and Restructuring Fund ........................... 825,539 131,539
Energy and Natural Resources Fund....................... 37,530 5,978
Real Estate Fund........................................ 17,153 24
Technology Fund......................................... 8 2
</TABLE>
For the six months ended September 30, 2000, no administrative service fees
have been charged to the Value Equity Fund.
Edgewood Services, Inc. (the "Distributor"), a wholly-owned subsidiary of
Federated Investors, serves as the distributor of Excelsior Fund and the
Trust. Each Portfolio's Shares are sold on a continuous basis by the
Distributor.
The Trust has adopted a Distribution Plan pursuant to Rule 12b-1 under the
1940 Act, under which the Shares of Optimum Growth Fund and Value Equity Fund
may compensate the Distributor monthly for its services which are intended to
result in the sale of Portfolio Shares, in an amount not to exceed the annual
rate of 0.25% of the average daily net asset value of each Portfolio's
outstanding Shares.
25
<PAGE>
Each Independent Director of Excelsior Fund receives an annual fee of
$9,000, plus a meeting fee of $1,500 for each meeting attended. The Chairman
receives an additional annual fee of $5,000. Each member of the Nominating
Committee receives an annual fee of $2,000 for services in connection with
this committee. Independent Trustees of Excelsior Trust receive an annual fee
of $4,000, plus a meeting fee of $250 for each meeting attended. The Chairman
receives an additional annual fee of $5,000. Each member of the Nominating
Committee receives an annual fee of $1,000 for services in connection with
this committee. In addition, Directors and Trustees are reimbursed by
Excelsior Fund and the Trust, respectively for reasonable expenses incurred
when acting in their capacity as Directors and Trustees.
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>
Blended Equity Fund.................................. $233,581,262 $180,815,409
Large Cap Growth Fund................................ 72,420,736 43,700,500
Optimum Growth Fund.................................. 25,279,492 24,514,989
Small Cap Fund....................................... 88,998,083 50,013,239
Value and Restructuring Fund......................... 388,831,070 68,547,080
Value Equity Fund.................................... 28,999,810 33,554,079
Energy and Natural Resources Fund.................... 28,035,968 16,432,713
Real Estate Fund..................................... 7,649,018 3,569,434
Technology Fund...................................... 17,672,593 833,952
</TABLE>
4. Capital Transactions:
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 portfolios. Authorized capital currently
offered for each Portfolio is as follows: 375 million shares of the Blended
Equity Fund and 500 million shares each of Large Cap Growth Fund, Small Cap
Fund, Value and Restructuring Fund, Energy and Natural Resources Fund, Real
Estate Fund and Technology 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. The
Trust currently has authorized an unlimited number of shares of beneficial
interest of each class of each Portfolio. Each share has a par value of
$.00001 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 the Trust's Board of
Trustees.
26
<PAGE>
<TABLE>
<CAPTION>
Blended Equity Fund
----------------------------------------------------
Six Months Ended Year Ended
09/30/00 03/31/00
------------------------ --------------------------
Shares Amount Shares Amount
---------- ------------ ----------- -------------
<S> <C> <C> <C> <C>
Sold.................... 2,438,491 $120,659,430 5,015,065 $ 197,998,563
Issued in connection
with reorganization.... -- -- 1,324,542 59,663,830
Issued as reinvestment
of dividends........... 608 28,983 166,532 7,730,323
Redeemed................ (2,007,890) (99,263,453) (3,829,880) (171,900,588)
---------- ------------ ----------- -------------
Net Increase............ 431,209 $ 21,424,960 2,676,259 $ 93,492,128
========== ============ =========== =============
<CAPTION>
Large Cap Growth Fund
----------------------------------------------------
Six Months Ended Year Ended
09/30/00 03/31/00
------------------------ --------------------------
Shares Amount Shares Amount
---------- ------------ ----------- -------------
<S> <C> <C> <C> <C>
Sold.................... 4,143,088 $ 74,680,770 20,262,617 $ 312,425,480
Issued as reinvestment
of dividends........... -- -- -- --
Redeemed................ (2,834,157) (49,590,528) (11,589,142) (173,890,357)
---------- ------------ ----------- -------------
Net Increase............ 1,308,931 $ 25,090,242 8,673,475 $ 138,535,123
========== ============ =========== =============
<CAPTION>
Optimum Growth Fund
----------------------------------------------------
Six Months Ended Year Ended
09/30/00 03/31/00
------------------------ --------------------------
Shares Amount Shares Amount
---------- ------------ ----------- -------------
<S> <C> <C> <C> <C>
Sold:
Shares................ 180,769 $ 5,277,175 454,057 $ 12,791,975
Institutional Shares.. 240,130 7,056,696 663,763 18,585,551
Issued as reinvestment
of dividends:
Shares................ -- -- 60,107 1,662,560
Institutional Shares.. -- -- 61,937 1,726,809
Redeemed:
Shares................ (96,506) (2,781,506) (248,560) (6,863,369)
Institutional Shares.. (213,198) (6,255,929) (1,135,686) (31,622,549)
---------- ------------ ----------- -------------
Net Increase
(Decrease)............. 111,195 $ 3,296,436 (144,382) $ (3,719,023)
========== ============ =========== =============
<CAPTION>
Small Cap Fund
----------------------------------------------------
Six Months Ended Year Ended
09/30/00 03/31/00
------------------------ --------------------------
Shares Amount Shares Amount
---------- ------------ ----------- -------------
<S> <C> <C> <C> <C>
Sold.................... 2,677,116 $ 38,901,172 4,828,421 $ 60,118,324
Issued as reinvestment
of dividends........... 2,408 35,895 -- --
Redeemed................ (1,211,072) (17,619,170) (2,539,390) (26,781,542)
---------- ------------ ----------- -------------
Net Increase............ 1,468,452 $ 21,317,897 2,289,031 $ 33,336,782
========== ============ =========== =============
</TABLE>
27
<PAGE>
<TABLE>
<CAPTION>
Value and Restructuring Fund
----------------------------------------------------
Six Months Ended Year Ended
09/30/00 03/31/00
------------------------- -------------------------
Shares Amount Shares Amount
---------- ------------- ---------- -------------
<S> <C> <C> <C> <C>
Sold.................... 13,602,669 $ 445,476,717 20,158,719 $ 588,694,745
Issued as reinvestment
of dividends........... 438,029 13,773,951 33,413 916,287
Redeemed................ (4,144,668) (135,518,066) (9,472,264) (270,102,624)
---------- ------------- ---------- -------------
Net Increase............ 9,896,030 $ 323,732,602 10,719,868 $ 319,508,408
========== ============= ========== =============
<CAPTION>
Value Equity Fund
----------------------------------------------------
Six Months Ended Year Ended
09/30/00 03/31/00
------------------------- -------------------------
Shares Amount Shares Amount
---------- ------------- ---------- -------------
<S> <C> <C> <C> <C>
Sold:
Shares................ 5,882 $ 118,392 15,650 $ 298,897
Institutional Shares.. 41,246 791,297 299,695 5,023,385
Issued as reinvestment
of dividends:
Shares................ 343 6,540 72 1,355
Institutional Shares.. 11 211 1 40
Redeemed:
Shares................ (9,282) (171,783) (8,071) (138,817)
Institutional Shares.. (249,101) (4,937,558) (331,276) (6,315,104)
---------- ------------- ---------- -------------
Net Decrease............ (210,901) $ (4,192,901) (23,929) $ (1,130,244)
========== ============= ========== =============
<CAPTION>
Energy and Natural Resources Fund
----------------------------------------------------
Six Months Ended Year Ended
09/30/00 03/31/00
------------------------- -------------------------
Shares Amount Shares Amount
---------- ------------- ---------- -------------
<S> <C> <C> <C> <C>
Sold.................... 2,474,225 $ 40,229,127 3,848,740 $ 49,911,978
Issued as reinvestment
of dividends........... 4,136 63,965 77,531 920,549
Redeemed................ (1,709,773) (27,156,904) (3,156,254) (40,202,621)
---------- ------------- ---------- -------------
Net Increase............ 768,588 $ 13,136,188 770,017 $ 10,629,906
========== ============= ========== =============
<CAPTION>
Real Estate Fund
----------------------------------------------------
Six Months Ended Year Ended
09/30/00 03/31/00
------------------------- -------------------------
Shares Amount Shares Amount
---------- ------------- ---------- -------------
<S> <C> <C> <C> <C>
Sold.................... 1,142,348 $ 6,547,173 2,854,909 $ 15,380,329
Issued as reinvestment
of dividends........... 3,514 19,785 2,584 13,758
Redeemed................ (370,205) (2,103,353) (2,360,998) (12,440,442)
---------- ------------- ---------- -------------
Net Increase............ 775,657 $ 4,463,605 496,495 $ 2,953,645
========== ============= ========== =============
</TABLE>
28
<PAGE>
<TABLE>
<CAPTION>
Technology Fund
----------------------
03/31/00*-09/30/00
----------------------
Shares Amount
--------- -----------
<S> <C> <C>
Sold.................................................... 2,742,962 $18,044,212
Issued as reinvestment of dividends..................... 4 28
Redeemed................................................ (72,248) (451,825)
--------- -----------
Net Increase............................................ 2,670,718 $17,592,415
--------- -----------
</TABLE>
--------
* Commencement of Operations.
5. Organization Costs:
Excelsior Fund and the Trust have 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 up to 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.
29
