Institutional International Equity Portfolio
Supplement to Prospectus dated May 1, 1997
The following expense table has been restated to reflect the changed information
and replaces the section entitled "Expense Information".
Expense Information
This information is designed to help an investor understand the various costs
and expenses of investing in the Portfolio.
1) Shareholder Transaction Expenses: Expenses charged directly to an
individual account in the Portfolio for various transactions.
NONE
2) Annual Portfolio Operating Expenses: Estimated expenses to be paid by the
Portfolio before it distributes its net investment income, expressed as a
percentage of its average daily net assets for the fiscal year ended
December 31, 1997.
Investment Management Fee (after waiver) 0.00%*
Other Expenses 1.04%*
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Total Portfolio Operating Expenses (after waiver) 1.04%*
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Example
Based on the level of total Portfolio operating expenses listed above, the
total expenses relating to a $1,000 investment, assuming a 5% annual return and
redemption at the end of each period, are listed below. Investors do not pay
these expenses directly; they are paid by the Portfolio before it distributes
its net investment income to shareholders.
1 Year 3 Years
------ -------
$11 $33
See "Company Organization--Investment Adviser" for further information about
investment management fees. This example assumes reinvestment of all dividends
and distributions and that the percentage amounts listed under "Annual
Portfolio Operating Expenses" remain the same each year. This example should
not be considered a representation of past or future expenses or return. Actual
Portfolio expenses and return vary from year to year and may be higher or lower
than those shown.
* Until July 31, 1997, the Adviser had agreed to waive its investment
management fee and reimburse other expenses to the extent necessary so that
the total annualized expenses of the Portfolio did not exceed 0.95% of
average daily net assets. Effective August 1, 1997 through December 31,
1997, the Adviser has agreed to waive its management fee and reimburse
other expenses to the extent necessary so that the total annualized
expenses of the Portfolio do not exceed 1.15% of average daily net assets.
Estimated expenses in the table are for the fiscal year ended December 31,
1997 and include the effect of a new transfer agency fee which took effect
July 1, 1997. If the Adviser had not agreed to waive its fee and reimburse
other expenses, it is estimated that the annualized Portfolio expenses
would be: investment management fee 0.90%, other expenses 1.36% and total
operating expenses 2.26% for the fiscal year ended December 31, 1997.
August 1, 1997
