March 31, 1999
BT Mutual Funds
Pacific Basin
Equity Fund
Semi-Annual Report
Trust: BT Investment Funds
Investment Advisor: Bankers Trust Company
<PAGE>
Pacific Basin Equity Fund
Table of Contents
Letter to Shareholders ........................................... 3
Pacific Basin Equity Fund
Statement of Assets and Liabilities ........................... 6
Statement of Operations ....................................... 6
Statements of Changes in Net Assets ........................... 7
Financial Highlights .......................................... 7
Notes to Financial Statements ................................. 8
Pacific Basin Equity Portfolio
Schedule of Portfolio Investments ............................. 10
Statement of Assets and Liabilities ........................... 12
Statement of Operations ....................................... 12
Statements of Changes in Net Assets ........................... 13
Financial Highlights .......................................... 13
Notes to Financial Statements ................................. 14
The Fund is not insured by the FDIC and is not a deposit, obligation of or
guarantee by Bankers Trust Company. The Fund is subject to investment risks,
including possible loss of principal amount invested.
2
<PAGE>
Pacific Basin Equity Fund
Letter to Shareholders
We are pleased to present you with this Semi-Annual report for the period ended
March 31, 1999 for the BT Investment Pacific Basin Equity Fund (the "Fund"). It
provides a review of the market, the Portfolio, and our outlook, as well as a
complete financial summary of the Fund's operations and a listing of the
Portfolio's holdings.
MARKET ACTIVITY
Overall, the region's equity markets experienced great volatility over the
semi-annual period, but also a stunning recovery after the massive declines seen
previously.
Asian stock markets produced strong performance for the fourth calendar quarter
of 1998, with many markets up over 35%. Early in the period, the region's
markets were kept subdued by great uncertainty in Latin America, particularly in
Brazil. But as the situation in the rest of the emerging markets improved,
fundamentals in Asia also gained strength, driven by several important factors.
These included:
o rapidly improving liquidity conditions, as current accounts went heavily into
surplus, disbursements from international agencies, such as the International
Monetary Fund, continued, and foreign direct investment accelerated
o interest rates globally and in Asia started to fall sharply to pre-crisis
levels; the U.S. Federal Reserve Board's two additional interest rate cuts in
the fourth quarter were particularly interpreted as a proactive move to reduce
global financial system risk
o sustained strengthening of the yen, which took pressure off currencies in the
region and improved the export competitiveness of other Asian countries; the
approval of the bank bailout legislation in Japan also increased the chance
of further fiscal stimulus
o signs began to emerge that economic activity was stabilizing, particularly in
South Korea, Thailand, the Philippines, and Singapore, thus enhancing growth
prospects for these markets
o with confidence returning, fund managers reinvested high cash balances,
generating strong demand for Asian stocks.
After initial nervousness during the corporate results season and short-term
resumption of yen weakness, the rally continued into the first quarter of 1999.
Fears of an imploding yen subsided as the equity markets focused on positives,
including:
o Japan's reflation efforts and restructuring initiatives
o interest rates that continued to fall in Asia, despite the backup in U.S. bond
yields
o ongoing strong equity markets in most of the developed world
o a strong upward revision in world growth prospects, led by the U.S.
o more signs of regional recovery, such as positive growth in industrial output,
bottoming retail sales, and resumption of import growth for the crisis
countries.
<TABLE>
<CAPTION>
Periods ended March 31, 1999 Cumulative Total Returns Average Annual Total Returns
---------------------------- ----------------------------------------------- ------------------------------------
Past 6 Past 1 Past 3 Past 5 Since Past 1 Past 3 Past 5 Since
months year years years inception year years years inception
------ ------ ------ ------ --------- ------ ------ ------ ---------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
BT Investment Pacific Basin
Equity Fund(1) 35.84% (9.11)% (41.06)% (29.00)% (28.50)% (9.11)% (16.16)% (6.62)% (6.01)%
(inception 11/1/93)
MSCI Combined Far
East Free
Ex Japan Index(2) 47.21% (10.94)% (46.97)% (35.71)% (38.32)% (10.94)% (19.06)% (8.46)% (8.54)%
MSCI Combined Asia Ex
Japan Index(2) 43.60% (11.13)% (44.25)% (35.93)% (37.47)% (11.13)% (17.70)% (8.52)% (8.31)%
Lipper Pacific Basin
Ex Japan Average(3) 29.56% (11.16)% (38.55)% (30.92)% (34.48)% (11.16)% (15.67)% (7.41)% (7.73)%
</TABLE>
(1) Performance quoted represents past performance. Investment return and
principal value will fluctuate, so that an investor's shares, when redeemed,
may be worth more or less than their original cost.
(2) The MSCI Far East Free ex Japan Index includes China Free, Hong Kong,
Indonesia, Korea, Malaysia, the Philippines, Singapore, Taiwan and Thailand.
The MSCI Combined Asia Free Ex Japan Index includes those same markets as
the Far East Free Ex Japan Index as well as India, New Zealand, Pakistan and
Sri Lanka. Indexes are unmanaged, and investments cannot be made in an
index. During the period the Fund waived certain fees and expenses. Had
these fees and expenses not been waived, the Fund's return would have been
lower.
(3) Lipper figures represent the average of the total returns reported by all of
the mutual funds designated by Lipper Analytical Services, Inc. as falling
into the respective categories indicated. These figures do not reflect sales
charges.
3
<PAGE>
Pacific Basin Equity Fund
Letter to Shareholders
[GRAPHIC]
Diversification of Portfolio Investments
By Country as of March 31, 1999
(percentages are based on market value)
Malaysia 4%
China 2%
Thailand 5%
Philippines 5%
South Korea 15%
India 7%
Singapore 13%
Indonesia 3%
Hong Kong 36%
Taiwan 10%
By the end of March, international interest in these markets was booming, with
international investors returning in force. Given the low market capitalizations
and liquidity of these markets, it only took a modest amount of international
interest to lead to explosive gains in many of the region's equity markets.
The only real disappointment in the region was the political situation in
Indonesia, although its equity market rose quite strongly during the semi-annual
period. There, social unrest escalated sharply, leading up to the election in
June 1999. Interestingly though, the strong positive impact of stabilizing
growth, improving liquidity, and rising commodity prices overwhelmed this
negative development.
INVESTMENT REVIEW
The Fund underperformed its benchmarks, but outperformed its Lipper category
average for the six months ended March 31, 1999. For the one year, the Fund has
outperformed both. Underperformance to the benchmark during the semi-annual
period can be attributed primarily to asset allocation. That is, the Fund was
overweight in its cash position, so it did not fully participate in the
significant rise of the region's markets, and it was underweight in the stronger
performing equity markets of Hong Kong and India. Stock selection also impacted
relative performance. In Hong Kong, the portfolio's holdings in stocks like
Smartone and our Chinese infrastructure plays such as Road King, Zhejiang
Expressway, and New World Infrastructure underperformed. Similarly in India, we
did not anticipate the strong rally in its technology and consumer stocks.
Ten Largest Stock Holdings
Cheung Kong Holdings Ltd. First Pacific Company
Ltd. 144a
Smartone Telecommunication Dao Heng Bank Group Ltd.
Hutchison Whampoa Ltd. SK Telecom Co., Ltd.
Hong Kong China and Gas Siliconware Precision
Co. Ltd. Industries Co. GDR
Samsung Electronics Asustek Computer, Inc.
During the semi-annual period, we reduced the Fund's cash position. Having built
up the cash level when the region's equity markets were in severe decline, we
are now seeking to be fully invested in stocks.
We increased the Fund's allocation to South Korea, Indonesia, and Thailand.
There were signs during the six months that these nations' economies might be
bottoming, and we are optimistic that their equity markets will produce strong
returns.
We decreased the Fund's allocation to Malaysia. Having already limited our
investments in this market given the Malaysian government's implementation of
capital controls on September 1, 1998 that prevent international investors from
repatriating funds from the sale of assets for one year, we reduced our holdings
there, as we view this market as particularly vulnerable.
We increased the Fund's holdings in economic-sensitive cyclical stocks. These
include paper company Indah Kiat in Indonesia and cement companies Semen Gresik
in Indonesia and Siam City Cement in Thailand.
MANAGER OUTLOOK
We are becoming increasingly positive on the outlook for most emerging markets,
including those in the Pacific Basin, as several factors should be supportive of
the region's equity markets.
o Confidence has returned to Asia ex-Japan markets, as these economies begin to
bottom and attract capital.
o Prospects for ongoing Asian growth recovery is good.
o European and North American investors have quickly supplanted Japanese
investment into the region, indirectly through security purchases and directly
through acquisition of real assets.
o Global interest rates remain low.
o Stock valuations remain attractive.
4
<PAGE>
Pacific Basin Equity Fund
Letter to Shareholders
We also remain optimistic for the region despite ongoing concerns over the
Japanese economy and currency. We believe Asian reflation will continue due to
strong liquidity resulting from expansionary monetary policy, large current
account surpluses, and increasing capital inflows. Restructuring at the macro
and micro levels will likely provide profitability improvements even if overall
global growth is weak.
Given the improvement in sentiment, the Fund intends to move toward full
investment in the region's equity markets, with biases towards:
o utilities, such as telecommunication and infrastructure companies, which tend
to have more stable cash flows
o domestic consumer franchises, which have a brand name, established
distribution networks, and tend to be fairly defensive in nature, and
o electronics companies in Singapore and Taiwan, which have low cost bases and
are well positioned, we believe, to benefit from further U.S. outsourcing.
We will, of course, continue monitoring economic conditions and how they affect
the financial markets, as we seek to provide long-term capital appreciation.
We value your ongoing support of the Pacific Basin Equity Fund and look forward
to continuing to serve your investment needs in the years ahead.
/s/ Paul Durham
Paul Durham
Portfolio Manager of the
Pacific Basin Equity Portfolio
March 31, 1999
Performance Comparison
Comparison of Change in Value of a $10,000 Investment in the BT Investment
Pacific Basin Equity Fund and the MSCI Combined Asia Ex Japan Index since
November 30, 1993.
Total Return for the Periods
Ended March 31, 1999(1)
One Five Since
Year Year 11/1/93(2)
------ ------ ----------
(9.11)% (6.62)% (6.01)%(3)
(1) Unaudited
(2) The Fund's inception date.
(3) Annualized.
Investment return and principal value may fluctuate so that shares, when
redeemed, may be worth more or less than their original cost.
[GRAPHIC]
In the printed version of the document, a line graph appears which depicts the
following plot points:
BT Investment MSCI
Pacific Combined
Basin Asia Ex Japan
Equity Fund - Index -
$7,150 $6,253
------------- ----------------
Nov-93 10000 10000
Mar-94 10392 9840
Sep-94 12198 11310
Mar-95 10614 9799
Sep-95 11727 10306
Mar-96 12518 11308
Sep-96 12625 10963
Mar-97 12888 10816
Sep-97 11366 9432
Mar-98 7866 7036
Sep-98 5263 4354
Mar-99 7150 6253
Past performance is not indicative of future performance. Performance figures
assume the reinvestment of dividends and capital gain distributions.
5
<PAGE>
Pacific Basin Equity Fund
Statement of Assets and Liabilities March 31, 1999 (unaudited)
<TABLE>
<CAPTION>
Assets
<S> <C>
Investment in Pacific Basin Equity Portfolio, at Value ............................................. $ 5,085,781
Prepaid Expenses and Other ......................................................................... 11,917
Due from Bankers Trust ............................................................................. 4,524
------------
Total Assets .......................................................................................... 5,102,222
------------
Liabilities
Accrued Expenses and Other ......................................................................... 18,127
------------
Net Assets ............................................................................................ $ 5,084,095
============
Composition of Net Assets
Paid-in Capital .................................................................................... $ 22,384,793
Undistributed Net Investment Income ................................................................ 2,464,766
Accumulated Net Realized Loss from Investment, Foreign Currency, and Forward Foreign
Currency Transactions ............................................................................. (19,804,227)
Net Unrealized Appreciation on Investment, Foreign Currencies and Forward Foreign
Currency Contracts ................................................................................ 38,763
------------
Net Assets ............................................................................................ $ 5,084,095
============
Net Asset Value, Offering and Redemption Price Per Share (net assets divided by shares outstanding) ... $ 3.06
============
Shares Outstanding ($0.001 par value per share, unlimited number of shares of
beneficial interest authorized) ....................................................................... 1,663,847
============
</TABLE>
Statement of Operations For the six months ended March 31, 1999 (unaudited)
<TABLE>
<CAPTION>
Investment Income
<S> <C>
Income Allocated from Pacific Basin Equity Portfolio, net .......................................... $ 11,080
------------
Expenses
Administration and Services Fees ................................................................... 18,053
Printing and Shareholder Reports ................................................................... 8,785
Professional Fees .................................................................................. 6,843
Registration Fees .................................................................................. 5,843
Trustees Fees ...................................................................................... 1,957
Miscellaneous ...................................................................................... 2,010
------------
Total Expenses ..................................................................................... 43,491
Less Expenses absorbed by Bankers Trust ............................................................ (25,438)
------------
Net Expenses .................................................................................... 18,053
------------
Net Investment Income ................................................................................. (6,973)
------------
Realized and Unrealized Gain (Loss) on Investments, Futures, Foreign Currencies and
Forward Foreign Currency Contracts
Net Realized Gain (Loss) from:
Investment Transactions ......................................................................... (439,417)
FutureTransactions .............................................................................. (16,279)
Foreign Currency Transactions ................................................................... (33,718)
ForwardForeign Currency Contracts ............................................................... 64,745
Net Change in Unrealized Appreciation/Depreciation on Investments, Futures, Foreign Currencies
and Forward Foreign Currency Contracts ........................................................ 2,070,261
------------
Net Realized and Unrealized Gain on Investments, Foreign Currencies and
Forward Foreign Currency Contracts ............................................................... 1,645,592
------------
Net Increase in Net Assets from Operations ............................................................ $ 1,638,619
============
</TABLE>
See Notes to Financial Statements.
6
<PAGE>
Pacific Basin Equity Fund
Statements of Changes in Net Assets
<TABLE>
<CAPTION>
For the For the
six months ended year ended
March 31, 1999(1) September 30, 1998
------------------ ------------------
<S> <C> <C>
Increase (Decrease) in Net Assets from:
Operations
Net Investment Income/(Expenses in Excess of Income) .......................... $ (6,973) $ 53,983
Net Realized Loss from Investment, Foreign Currency Transactions and
Forward Foreign Currency Transactions ...................................... (424,669) (14,010,808)
Net Change in Unrealized Appreciation on Investment,
Foreign Currency and Forward Foreign Currency Contracts .................... 2,070,261 1,768,180
------------ ------------
Net Increase (Decrease) in Net Assets from Operations ............................ 1,638,619 (12,188,645)
------------ ------------
Distributions to Shareholders
Net Investments Income ........................................................ -- (270,311)
Net Realized Gains ............................................................ (2,341,154) (1,872,886)
------------ ------------
Total Distributions .............................................................. (2,341,154) (2,143,197)
------------ ------------
Capital Transactions in Shares of Beneficial Interest
Proceeds from Sales of Shares ................................................. 19,758,979 32,705,049
Dividend Reinvestments ........................................................ 82 856,416
Cost of Shares Redeemed ....................................................... (18,240,631) (41,462,722)
------------ ------------
Net Increase (Decrease) from Capital Transactions in Shares of Beneficial
Interest ...................................................................... 1,518,430 (7,901,257)
------------ ------------
Total Increase (Decrease) in Net Assets .......................................... 815,895 (22,233,099)
Net Assets
Beginning of Period .............................................................. 4,268,200 26,501,299
------------ ------------
End of Period (including undistributed net investment income of $2,464,766 and
$ 2,471,739 respectively) ..................................................... $ 5,084,095 $ 4,268,200
============ ============
</TABLE>
- -------------
(1) Unaudited
Financial Highlights
Contained below are selected data for a share outstanding, total investment
return, ratios to average net assets and other supplemental data for the periods
indicated for the Pacific Basin Equity Fund.
<TABLE>
<CAPTION>
For the period
Nov. 1, 1993
For the For the years ended (Commencement of
six months ended September 30, Operations) to
March 31, 1999(1) 1998 1997 1996 1995 Sept. 30, 1994
---------------- ---- ---- ---- ---- --------------
<S> <C> <C> <C> <C> <C> <C>
Per Share Operating Performance:
Net Asset Value, Beginning of Period ............ $ 3.89 $10.16 $ 11.80 $ 10.96 $ 11.82 $ 10.00
------ ------ ------- ------- ------- -------
Income from Investment Operations
Net Investment Income/(Expenses in Excess
of Income) ................................ (0.01) 0.24 (0.05) (0.03) 0.01 (0.04)
Net Realized and Unrealized Gain (Loss) on
Investment, Foreign Currencies and
Forward Foreign Currency Transactions ..... 1.25 (5.32) (1.07) 0.87 (0.49) 1.86
------ ------ ------- ------- ------- -------
Total from Investment Operations ................ 1.24 (5.08) (1.12) 0.84 (0.48) 1.82
------ ------ ------- ------- ------- -------
Distributions to Shareholders
Net Investment Income ........................ -- (0.24) -- -- -- --
Net Realized Gains ........................... (2.03) (0.99) (0.52) -- (0.38) --
------ ------ ------- ------- ------- -------
Total Distributions ............................. (2.03) (1.23) (0.52) -- (0.38) --
------ ------ ------- ------- ------- -------
Net Asset Value, End of Period .................. $ 3.06 $ 3.85 $ 10.16 $ 11.80 $ 10.96 $ 11.82
====== ====== ======= ======= ======= =======
Total Investment Return ......................... 35.84% (52.21)% (9.97)% 7.66% (3.87)% 20.11%(2)
Supplemental Data and Ratios:
Net Assets, End of Period (000s omitted) ..... $5,084 $4,268 $26,501 $29,389 $24,504 $25,362
Ratios to Average Net Assets:
Net Investment Income/(Expenses in Excess
of Income) ............................. (0.29)%(2) 0.43% (0.42)% (0.24)% 0.12% (0.59)%(2)
Expenses, Including Expenses of the
Pacific Basin Equity Portfolio .......... 1.75%(2) 1.75% 1.75% 1.75% 1.75% 1.75%(2)
Decrease Reflected in Above Expense
Ratio Due to Absorption of Expenses by
Bankers Trust ........................... 1.80%(2) 0.70% 0.29% 0.31% 0.52% 0.60%(2)
</TABLE>
- -----------
(1) Unaudited
(2) Annualized
See Notes to Financial Statements.
7
<PAGE>
Pacific Basin Equity Fund
Notes to Financial Statements (unaudited)
Note 1--Organization and Significant Accounting Policies
A. Organization
BT Investment Funds (the "Trust") is registered under the Investment Company Act
of 1940 (the "Act"), as amended, as an open-end management investment company.
The Trust was organized on July 21, 1986, as a business trust under the laws of
the Commonwealth of Massachusetts. The Pacific Basin Equity Fund (the "Fund") is
one of the funds offered to investors by the Trust. The Fund commenced
operations and began offering shares of beneficial interest on November 1, 1993.
The Fund invests substantially all of its assets in the Pacific Basin Equity
Portfolio (the "Portfolio"). The Portfolio is an open-end management investment
company registered under the Act. The Fund seeks to achieve its investment
objective by investing all of its investable assets in the Portfolio. The value
of the Fund's in the Portfolio reflects its proportionate interest in the net
assets of the Portfolio. At March 31, 1999, the Fund's investment was
approximately 100% of the Portfolio.
The financial statements of the Portfolio, including a list of assets held are
contained elsewhere in this report and should be read in conjunction with the
Fund's financial statements.
B. Valuation
Valuation of securities by the Portfolio is discussed in Note 1B of the
Portfolio's Notes to Financial Statements.
C. Investment Income
The Fund's income net of expenses is earned daily on its investment in the
Portfolio. All of the net investment income and realized and unrealized gains
and losses from the security transactions of the Portfolio are allocated pro
rata among the investors in the Portfolio at the time of such determination.
D. Distributions
It is the Fund's policy to declare and distribute dividends annually to
shareholders from net investment income. Dividends and distributions payable to
shareholders are recorded by the Fund on the ex-dividend date. Distributions of
net realized short-term and long-term capital gains, if any, earned by the Fund
are also made annually to the extent they are not offset by any capital loss
carryforwards.
E. Federal Income Taxes
It is the Fund's policy to comply with the requirements of the Internal Revenue
Code applicable to regulated investment companies and to distribute all of its
taxable income to shareholders. Therefore, no federal income tax provision is
required. The Fund may periodically make reclassifications among certain of its
capital accounts as a result of the differences in the characterization and
allocation of certain income and capital gain distributions determined annually
in accordance with federal tax regulations which may differ from generally
accepted accounting principles. The Fund has a capital loss carryforward in the
amount of $923,827 expiring in 2006. In addition the Fund has post October
capital losses of $15,783,008 available in the current year.
F. Other
The Trust accounts separately for the assets, liabilities, and operations of
each Fund. Expenses directly attributable to the Fund are charged to that Fund
while expenses which are attributable to all of the Trust's funds are allocated
among the Funds. Investment transactions are accounted for on a trade date
basis. Realized gains and losses are determined on the identified cost basis.
The preparation of financial statements in conformity with generally accepted
accounting principles requires management to make estimates and assumptions that
affect the reported amounts in the financial statements. Actual results could
differ from those estimates.
Note 2--Fees and Transactions with Affiliates
The Fund has entered into an Administration and Services Agreement with Bankers
Trust Company ("Bankers Trust"). Under this Administration and Services
Agreement, Bankers Trust provides administrative, custody, transfer agency and
shareholder services to the Fund in return for a fee computed daily and paid
monthly at an annual rate of 0.75% of the Fund's average daily net assets.
Bankers Trust has voluntarily undertaken to waive its fees and reimburse
expenses of the Fund, to the extent necessary, to limit all expenses to 0.75% of
the average daily net assets of the Fund, excluding expenses of the Portfolio
and 1.75% of the average daily net assets of the Fund, including expenses of the
Portfolio.
ICC Distributors, Inc., a member of the Forum Group of Companies, provides
distribution services to the Fund.
Bankers Trust Company is a wholly owned subsidiary of Bankers Trust Corporation.
On November 30, 1998, Bankers Trust Corporation entered into an Agreement and
Plan of Merger with Deutsche Bank AG under which Bankers Trust Corporation would
merge with and into a subsidiary of Deutsche Bank AG. Deutsche Bank AG is a
major global banking institution that is engaged in a wide range of financial
services, including investment management, mutual funds, retail and commercial
banking, investment banking and insurance. The transaction is contingent upon
various regulatory approvals, and continuation of the Fund's advisory
relationship with Bankers Trust thereafter is subject to the approval of Fund
shareholders. If the transaction is approved and completed, Deutsche Bank AG, as
Bankers Trust's new parent company, will control its operations as investment
adviser. Bankers Trust believes that, under this new arrangement, the services
provided to the Fund will be maintained at their current level.
8
<PAGE>
Pacific Basin Equity Fund
Notes to Financial Statements (unaudited)
Note 3--Shares of Beneficial Interest
At March 31, 1999, there were an unlimited number of shares of beneficial
interest authorized. Transactions in shares of beneficial interest were as
follows:
For the For the
six months ended year ended
March 31, 1999 September 30,
(unaudited) 1998
----------------------------------------------
Shares Amount Shares Amount
------ ------ ------ ------
Sold 5,587,580 $19,758,979 5,691,053 $ 32,705,049
Reinvested 22 82 175,395 856,416
Redeemed (5,033,455) 18,242,631 (7,364,032) (41,462,722)
---------- ----------- ---------- ------------
Net Increase
(Decrease) 554,147 $ 1,518,430 (1,497,584) $(7,901,257)
========== =========== ========== ===========
Note 4--Risks of Investing in Emerging Markets
The risks involved when investing in emerging markets are of a nature generally
not encountered when investing in securities traded on major international
markets.
Investment in securities of issuers based in underdeveloped emerging markets
involves special risks and considerations not typically associated with
investing in U.S. companies. These risks include: (i) greater risks of
expropriation, confiscatory taxation, nationalization, and less social,
political and economic stability; (ii) the smaller size of the market for such
securities and a low or nonexistent volume of trading, resulting in lack of
liquidity and in price volatility. Additionally, developments affecting emerging
market investments can not always be foreseen.
9
<PAGE>
- --------------------------------------------------------------------------------
Pacific Basin Equity Portfolio
Schedule of Portfolio Investments March 31, 1999 (unaudited)
- --------------------------------------------------------------------------------
Shares Security Value
------ -------- -----
COMMON STOCKS - 89.0%
China - 1.2%
34,700 Guangdong Kelon Electric ....................... $ 25,524
1,770 Huaneng Power International
ADR (a) ........................................ 17,589
5,100 Shandong Huaneng Power ADR ..................... 19,125
---------
62,238
---------
Hong Kong - 31.6%
800 Amway Asia Pacific Ltd ......................... 5,950
399,729 Champion Technology Holding Ltd. ............... 7,325
31,000 Cheung Kong Holdings Ltd. ...................... 236,021
28,000 China Telecommunications ....................... 46,611
36,900 Dao Heng Bank Group Ltd. ....................... 121,900
241,500 First Pacific Company Ltd. 144a (d) ............ 144,913
13,000 Guoco Group .................................... 22,899
100,600 Hong Kong and China Gas Co. Ltd. ............... 142,151
49,500 Hong Kong Telecommunications Ltd. .............. 97,731
2,200 Hsbc Holdings .................................. 68,987
16,000 Hutchison Whampoa Ltd. ......................... 125,947
234,748 Moulin International Holding ................... 23,931
56,300 National Mutual Asia Ltd. ...................... 39,595
29,000 New World Development Co. Ltd. ................. 57,070
29,800 New World Infrastructure (a) ................... 38,840
605,000 Pacific Ports Company Ltd. ..................... 47,624
197,000 Peregrine Investments Holding Ltd. (a)(b) ...... 0
112,299 Road King Infrastructure ....................... 65,936
46,600 Smartone Telecommunication ..................... 135,002
14,000 Sun Hung Kai Properties Ltd. ................... 104,784
30,600 Wharf Holdings Ltd. ............................ 46,990
157,000 Zhenjiang Expressway Co. ....................... 26,743
---------
1,606,950
---------
India - 6.7%
3,891 Indian Tobacco Company Ltd. GDR ................ 106,030
4,000 Industrial Credit & Investment Corp. ........... 24,810
3,000 Larsen and Toubro GDR .......................... 31,125
9,820 Mahanagar Telephone Nigam
Ltd. ADR ....................................... 104,337
5,000 Mahindra Mahindra GDR .......................... 27,750
1,000 Videsh Sanchar ................................. 9,050
4,000 Videsh Sanchar 144a (d) ........................ 36,200
---------
339,302
---------
Indonesia - 3.2%
106,000 PT Indah Kiah Pulp & Paper ..................... 30,023
99,500 PT Indofood Sukses Makmu (a) ................... 62,116
239,000 PT Panin Bank .................................. 12,433
52,800 PT Semen Gresik (Persero) TBK .................. 60,125
---------
164,697
---------
Malaysia - 3.5% (b)
48,000 Berjaya Sports Toto Berhad (c) ................. 49,819
81,000 Kentucky Fried Chicken (c) ..................... 45,125
Shares Security Value
------ -------- -----
16,000 Malaysia Intl Shipping-F (c) ................... $ 15,175
80,000 Malaysia Mining Corp. (c) ...................... 37,895
33,000 RJ Reynolds Berhad (c) ......................... 22,232
19,000 Technology Resources (c) ....................... 5,715
---------
175,961
---------
Philippines - 4.4%
861,000 Digital Telecom Philippines (a) ................ 22,664
1,123,000 Metro Pacific Corp. (a) ........................ 54,484
11,600 Philippine Commercial
International Bank ............................. 65,559
260,000 Philippine Gold PLC ............................ 44,008
23,500 San Miguel Corp. Class B ....................... 39,116
---------
225,831
---------
Singapore - 9.7%
19,000 Elec & Eltek International Co., Ltd. ........... 69,920
67,000 Keppel Telecom and Trans ....................... 53,538
20,500 Natsteel Electronics Ltd. ...................... 56,028
18,600 Rothmans Industries ............................ 95,854
53,000 Singapore Telecommunications Ltd. .............. 75,495
170,000 United Overseas Bank Ltd. (a) .................. 80,364
77,000 Wing Tai Holdings .............................. 62,420
---------
493,619
---------
South Korea - 14.1%
10,256 Amkor Technologies (a) ......................... 80,766
2,200 Housing & Commercial Bank GDR .................. 42,735
1,950 Housing & Commercial Bank ...................... 38,936
2,836 Kookmin Bank ................................... 27,967
4,891 Kookmin Bank GDR ............................... 46,954
8,000 Korea Electric Power ADR ....................... 101,500
2,000 Korea Mobile Telecom ADR ....................... 24,375
1,100 Pohang Iron & Steel ............................ 67,866
1,000 Pohang Iron & Steel ADR ........................ 17,875
1,727 Samsung Electronics ............................ 133,712
1,460 SK Telecom Co., Ltd. ........................... 131,726
---------
714,412
---------
Taiwan - 9.9%
1,720 Advanced Semiconductor
Engineering (a) ................................ 23,435
1,520 Ase Test Ltd. (a) .............................. 60,040
12,350 Asustek Computer, Inc. ......................... 113,002
5,360 Fubon Insurance (a) ............................ 51,724
8,873 Siliconware Precision Industries
Co. GDR ........................................ 117,345
2,157 Taiwan Semiconductor SP ADR .................... 50,959
1,040 Taiwan Semiconductor SP ........................ 24,570
9,800 Total Access Communication (a) ................. 21,168
9,554 Yageo Corp. GDR ................................ 42,993
---------
505,236
---------
See Notes to Financial Statements.
10
<PAGE>
- --------------------------------------------------------------------------------
Pacific Basin Equity Portfolio
Schedule of Portfolio Investments March 31, 1999 (unaudited)
- --------------------------------------------------------------------------------
Shares Security Value
------ -------- -----
Thailand - 4.7%
20,200 Bangkok Bank (a) ............................... $ 41,383
68,000 Krung Thai Bank (F) ............................ 31,661
35,600 Shinawatra Public Co. Ltd. ..................... 92,824
21,500 Siam City Cement Company (a) ................... 72,649
------------
238,517
------------
Total Common Stocks (Cost $4,486,619) .......................... 4,526,763
------------
Warrants - 3.4%
Hong Kong - 0.0%
64,248 Champion Technology Warrants ................... 315
362,238 Moulin International Holdings
Ltd. Warrants 10/99 .......................... 1,169
67,200 Tai Food Group Warrants 8/31/99 ................ 139
------------
1,623
------------
Indonesia - 0.0%
7,567 PT Indah Kiat Wts .............................. 1,312
------------
Singapore - 3.4%
160,000 Development Bank of Singapore Wts .............. 91,227
150,000 Overseas-Chinese Banking Corp.
Ltd. Wts ..................................... 76,763
2,500 Singapore Airline Wts .......................... 3,547
------------
171,537
------------
Total Warrants (Cost $171,792) ................................. 174,472
------------
Total Investments (Cost $4,658,411) ................... 92.4% $4,701,235
Other Assets in Excess of Liabilities ................. 7.6% 384,566
------ ------------
Net Assets ............................................ 100.0% $5,085,801
====== ============
- -------------------
(a) Non-income producing security
(b) Illiquid securities
(c) Security fair valued by management see note 1B.
(d) 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.
Abbreviations:
ADR - American Depository Receipt
GDR - Global Depository Receipt
Industry Diversification (as a percentage of Total Investments):
% of
Industry Market Value
-------- ------------
Banks ............................. 16.30%
Building & Construction ........... 2.68%
Commercial Services ............... 4.16%
Computer Services & Software ...... 1.21%
Diversified ....................... 4.89%
Electrical ........................ 7.66%
Electronics ....................... 7.33%
Engineering ....................... 1.33%
Entertainment ..................... 1.01%
Financial Services ................ 4.61%
Foods ............................. 2.96%
Insurance ......................... 1.04%
Iron & Steel ...................... 1.73%
Manufacturing ..................... 2.21%
Pharmaceuticals ................... 1.10%
Real Estate ....................... 11.16%
Telecommunications ................ 16.21%
Tobacco ........................... 4.08%
Transportation .................... 1.86%
Utilities ......................... 4.38%
Other(1) .......................... 2.09%
-------
Total ............................. 100.00%
=======
(1) No one industry represents more than 1% of Portfolio Holdings
See Notes to Financial Statements.
11
<PAGE>
- --------------------------------------------------------------------------------
Pacific Basin Equity Portfolio
Statement of Assets and Liabilities March 31, 1999 (unaudited)
- --------------------------------------------------------------------------------
<TABLE>
<S> <C>
Assets
Investments, at Value (Cost of $4,658,411) ........................................... $ 4,701,235
Cash(1) .............................................................................. 188,069
Receivable for Securities Sold ....................................................... 543,700
Unrealized Appreciation on Forward Foreign Currency Contracts ........................ 102,838
Dividends and Interest Receivable .................................................... 6,498
-----------
Total Assets ............................................................................ 5,542,340
-----------
Liabilities
Payable for Securities Purchased ..................................................... 319,895
Due to Bankers Trust ................................................................. 4,789
Unrealized Depreciation on Forward Foreign Currency Contracts ........................ 110,550
Accrued Expenses and Other ........................................................... 21,304
-----------
Total Liabilities ....................................................................... 456,539
-----------
Net Assets .............................................................................. $ 5,085,801
===========
Composition of Net Assets
Paid-in Capital ...................................................................... $ 5,461,115
Undistributed Net Investment Loss .................................................... 11,081
Accumulated Net Realized Loss from Investment, Futures, Foreign Currency and
Forward Currency Transactions ...................................................... (424,660)
Net Unrealized Appreciation on Investments, Foreign Currency Transactions
and Forward Foreign Currency Contracts ............................................. 38,265
-----------
Net Assets .............................................................................. $ 5,085,801
===========
</TABLE>
- ---------------
(1) Includes foreign cash of $299,729 with a cost of $296,729.
- --------------------------------------------------------------------------------
Statement of Operations For the six months ended March 31, 1999 (unaudited)
- --------------------------------------------------------------------------------
<TABLE>
<S> <C>
Investment Income
Dividends (net of foreign withholding tax of $4,634) ................................. $ 29,609
Interest ............................................................................. 6,702
-----------
Total Investment Income ................................................................. 36,311
-----------
Expenses
Advisory Fees ........................................................................ 18,922
Professional Fees .................................................................... 14,110
Administration and Services Fees ..................................................... 6,307
Foreign Custody Fees ................................................................. 1,952
Trustees Fees ........................................................................ 1,622
Miscellaneous ........................................................................ 820
-----------
Total Expenses ....................................................................... 43,733
Less Expenses absorbed by Bankers Trust .............................................. (18,503)
-----------
Net Expenses ...................................................................... 25,230
-----------
Net Investment Income ................................................................... 11,081
-----------
Realized and Unrealized Gain (Loss) on Investments, Futures, Foreign Currencies,
and Forward Foreign Currency Contracts
Net Realized Gain (Loss) from:
Investment Transactions ........................................................... (439,418)
Foreign Futures Transactions ...................................................... (16,279)
Foreign Currency Transactions ..................................................... (33,708)
Forward Foreign Currency Transactions ............................................. 64,745
Net Change in Unrealized Appreciation/Depreciation on Investments, Foreign Currencies,
and Forward Foreign Currency Contracts ............................................ 2,070,267
-----------
Net Realized and Unrealized Gain on Investments, Foreign Currencies,
and Forward Foreign Currency Contracts ............................................... 1,645,607
-----------
Net Increase in Net Assets from Operations .............................................. $ 1,656,688
===========
</TABLE>
See Notes to Financial Statements.
12
<PAGE>
- --------------------------------------------------------------------------------
Pacific Basin Equity Portfolio
Statements of Changes in Net Assets
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
For the For the
six months ended year ended
March 31, 1999(1) September 30, 1998
-------------------- --------------------
<S> <C> <C>
Increase (Decrease) in Net Assets from:
Operations
Net Investment Income ......................................... $ 11,081 $ 149,250
Net Realized Loss from Investments, Futures, Foreign Currencies
and Forward Foreign Currency Transactions ................... (424,660) (14,010,816)
Net Change in Unrealized Appreciation on Investment,
Foreign Currencies and Forward Foreign Currency Contracts ... 2,070,267 1,768,257
------------ ------------
Net Increase (Decrease) in Net Assets from Operations ............ 1,656,688 (12,093,309)
------------ ------------
Capital Transactions
Proceeds from Capital Invested ................................ 19,844,565 33,236,914
Value of Capital Withdrawn .................................... (20,657,899) (43,431,238)
------------ ------------
Net Decrease in Net Assets from Capital Transactions ............. (813,334) (10,194,324)
------------ ------------
Total Increase (Decrease) in Net Assets .......................... 843,354 (22,287,633)
Net Assets
Beginning of Period .............................................. 4,242,447 26,530,080
------------ ------------
End of Period .................................................... $ 5,085,801 $ 4,242,447
============ ============
</TABLE>
- ----------------
(1) Unaudited
- --------------------------------------------------------------------------------
Financial Highlights
- --------------------------------------------------------------------------------
Contained below are selected ratios to average net assets and other supplemental
data for the periods indicated for the Pacific Basin Equity Portfolio.
<TABLE>
<CAPTION>
For the period
For the years ended Nov. 1, 1993
For the September 30, (Commencement
six months ended ------------------------------------- of Operations) to
March 31, 1999(1) 1998 1997 1996 1995 Sept. 30, 1994
------------------ ---- ---- ---- ---- -----------------
<S> <C> <C> <C> <C> <C> <C>
Supplemental Data and Ratios:
Net Assets, End of Period (000s omitted) .... $5,086 $4,242 $26,530 $29,609 $24,656 $25,366
Ratios to Average Net Assets:
Net Investment Income .................... 0.44%(2) 1.17% 0.33% 0.51% 0.87% 0.16%(2)
Expenses ................................. 1.00%(2) 1.00% 1.00% 1.00% 1.00% 1.00%(2)
Decrease Reflected in Above Expense
Ratio Due to Absorption of Expenses by
Bankers Trust .......................... 0.74%(2) 0.35% 0.14% 0.11% 0.20% 0.26%(2)
Portfolio Turnover Rate ..................... 140% 125% 172% 118% 104% 40%
</TABLE>
- -------------------
(1) Unaudited
(2) Annualized
See Notes to Financial Statements.
13
<PAGE>
- --------------------------------------------------------------------------------
Pacific Basin Equity Portfolio
Notes to Financial Statements (unaudited)
- --------------------------------------------------------------------------------
Note 1--Organization and Significant Accounting Policies
A. Organization
The Pacific Basin Equity Portfolio (the "Portfolio") is registered under the
Investment Company Act of 1940 (the "Act"), as amended, as an open-end
management investment company. The Portfolio was organized on August 6, 1993 as
an unincorporated trust under the laws of New York and commenced operations on
November 1, 1993. The Declaration of Trust permits the Board of Trustees (the
"Trustees") to issue beneficial interests in the Portfolio.
B. Security Valuation
The Portfolio's investments listed or traded on National Stock Exchanges or
other domestic or foreign exchanges are valued based on the closing price of the
security traded on that exchange. Short-term debt securities are valued at
market value until such time as they reach a remaining maturity of 60 days,
whereupon they are valued at amortized cost using their value on the 61st day.
All other securities and other assets are valued at their fair value as
determined in good faith under procedures established by and under the general
supervision of the Trustees.
On February 9, 1999, the Malaysian Government implemented an exit tax system
whereby funds brought into Malaysia prior to February 15, 1999 may be subject to
an exit tax depending on the holding period of such funds. Accordingly,
management has fair valued its Malaysian securities and cash positions based
upon the period such assets were held and the applicable rate of tax that
applies. At March 31, 1999 the total value of fair valued securities was
$175,961 representing 3.74% of total investments.
C. Security Transactions and Investment Income
Security transactions are accounted for on a trade date basis. Dividend income,
less foreign taxes withheld, if any, is recorded on the ex-dividend date or upon
receipt of ex-dividend notification in the case of certain foreign securities.
Interest income is recorded on the accrual basis and includes amortization of
premium and discount on investments. Realized gains and losses from securities
transactions are recorded on the identified cost basis.
All of the net investment income and realized and unrealized gains and losses
from the security and foreign currency transactions of the Portfolio are
allocated pro rata among the investors in the Portfolio at the time of such
determination.
D. Repurchase Agreements
The Portfolio may enter into repurchase agreements with financial institutions
deemed to be creditworthy by the Portfolio's Investment Advisor, subject to the
seller's agreement to repurchase such securities at a mutually agreed upon
price. Securities purchased subject to repurchase agreements are deposited with
the Portfolio's custodian, and pursuant to the terms of the repurchase agreement
must have an aggregate market value greater than or equal to the repurchase
price plus accrued interest at all times. If the value of the underlying
securities falls below the value of the repurchase price plus accrued interest,
the Portfolio will require the seller to deposit additional collateral by the
next business day. If the request for additional collateral is not met, or the
seller defaults on its repurchase obligation, the Portfolio maintains the right
to sell the underlying securities at market value and may claim any resulting
loss against the seller. However, in the event of default or bankruptcy by the
seller, realization and/or retention of the collateral may be subject to legal
proceedings.
E. Foreign Currency Transactions
The books and records of the Portfolio are maintained in U.S. dollars. All
assets and liabilities initially expressed in foreign currencies are converted
into U.S. dollars at prevailing exchange rates. Purchases and sales of
investment securities, dividend and interest income, and certain expenses are
translated at the rates of exchange prevailing on the respective dates of such
transactions.
F. Forward Foreign Currency Contracts
The Portfolio may enter into forward foreign currency contracts for the purpose
of settling specific purchases or sales of securities denominated in a foreign
currency or with respect to the Portfolio's investments. The net U.S. dollar
value of foreign currency underlying all contractual commitments held by the
Portfolio and the resulting unrealized appreciation or depreciation are
determined using prevailing exchange rates. With respect to forward foreign
currency contracts, losses in excess of amounts recognized in the Statement of
Assets and Liabilities may arise due to changes in the value of the foreign
currency or if the counterparty does not perform under the contract.
G. Option Contracts
Upon the purchase of a put option or a call option by the Portfolio, the premium
paid is recorded as an investment and marked-to-market daily to reflect the
current market value. When a purchased option expires, the Portfolio will
realize a loss in the amount of the cost of the option. When the Portfolio
enters into a closing sale transaction, the Portfolio will realize a gain or
loss depending on whether the sale proceeds from the closing sale transaction
are greater or less than the cost of the option. When the Portfolio exercises a
put option, it realizes a gain or loss from the sale of the underlying security
and the proceeds from such sale will be decreased by the premium originally
paid. When the Portfolio exercises a call option, the cost of the security which
the Portfolio purchases upon exercise will be increased by the premium
originally paid.
H. Futures Contracts
The Portfolio may enter into financial futures contracts which are contracts to
buy a standard quantity of securities at a specified price on a future date. The
Portfolio is required to deposit either cash or securities an amount equal to a
certain percentage of the contract amount. Variation margin payments are made or
received by the Portfolio each day, dependent on the daily fluctuations in the
value of the underlying security, and are recorded for financial statement
purposes as unrealized gains or losses by the Portfolio.
Futures contracts are valued at the settlement price established each day by the
board of trade or exchange on which they are traded.
14
<PAGE>
- --------------------------------------------------------------------------------
Pacific Basin Equity Portfolio
Notes to Financial Statements (unaudited)
- --------------------------------------------------------------------------------
I. Federal Income Taxes
The Portfolio is considered a partnership under the Internal Revenue Code.
Therefore, no federal income tax provision is necessary.
J. Other
The preparation of financial statements in conformity with generally accepted
accounting principles requires management to make estimates and assumptions that
affect the reported amounts in the financial statements. Actual results could
differ from those estimates.
Note 2--Fees and Transactions with Affiliates
The Portfolio has entered into an Administration and Services Agreement with
Bankers Trust Company ("Bankers Trust"). Under this Administration and Services
Agreement, Bankers Trust provides administrative, custody, transfer agency and
shareholder services to the Portfolio in return for a fee computed daily and
paid monthly at an annual rate of 0.25% of the Portfolio's average daily net
assets.
The Portfolio has entered into an Advisory Agreement with Bankers Trust. Under
this Advisory Agreement, the Portfolio pays Bankers Trust an advisory fee
computed daily and paid monthly at an annual rate of 0.75% of the Portfolio's
average daily net assets.
Bankers Trust has entered into a Sub-Advisory Agreement with BT Portfolio
Managers International Limited ("BT Portfolio Managers International"), a wholly
owned subsidiary of Bankers Trust Australia Limited, for the Pacific Basin
Equity Portfolio. Under this Agreement, BT Portfolio Managers International
receives a fee from Bankers Trust for providing investment advice and research
services, computed daily and paid monthly at an annual rate of 0.60% of the
Portfolio's average daily net assets.
Bankers Trust has voluntarily undertaken to waive its fees and reimburse
expenses of the Portfolio, to the extent necessary, to limit all expenses to
1.00% of the average daily net assets of the Portfolio.
The Portfolio is a participant with other affiliated entities in a revolving
credit facility and a discretionary demand line of credit facility (collectively
the "credit facilities") in the amounts of $50,000,000 and $100,000,000,
respectively. A commitment fee of .07% per annum on the average daily amount of
the available commitment is payable on a calendar quarter basis, and apportioned
equally among all participants. Amounts borrowed under the credit facilities
will bear interest at a rate per annum equal to the Federal Funds Rate plus
.45%. No amounts were drawn down or outstanding under the credit facilities as
of and for the six months ended March 31, 1999.
Bankers Trust Company is a wholly owned subsidiary of Bankers Trust Corporation.
On November 30, 1998, Bankers Trust Corporation entered into an Agreement and
Plan of Merger with Deutsche Bank AG under which Bankers Trust Corporation would
merge with and into a subsidiary of Deutsche Bank AG. Deutsche Bank AG is a
major global banking institution that is engaged in a wide range of financial
services, including investment management, mutual funds, retail and commercial
banking, investment banking and insurance. The transaction is contingent upon
various regulatory approvals, and continuation of the Fund's advisory
relationship with Bankers Trust thereafter is subject to the approval of Fund
shareholders. If the transaction is approved and completed, Deutsche Bank AG, as
Bankers Trust's new parent company, will control its operations as investment
adviser. Bankers Trust believes that, under this new arrangement, the services
provided to the Fund will be maintained at their current level.
Note 3--Purchases and Sales of Investment Securities
The aggregate cost of purchases and proceeds from sales of investments, other
than short-term obligations, for the six months ended March 31, 1999, were
$6,346,684 and $6,883,345, respectively.
For Federal income tax purposes, the tax basis of investments held at March 31,
1999 was $4,658,411. The aggregate gross unrealized appreciation for all
investments was $582,360, and the aggregate gross unrealized depreciation for
all investments was $539,537.
15
<PAGE>
- --------------------------------------------------------------------------------
Pacific Basin Equity Portfolio
Notes to Financial Statements (unaudited)
- --------------------------------------------------------------------------------
Note 4--Open Forward Foreign Currency Contracts
At March 31, 1999, the Pacific Basin Equity Portfolio had the following open
forward foreign currency contracts outstanding:
<TABLE>
<CAPTION>
Net Unrealized
Appreciation
Contracts to Deliver In Exchange For Settlement Date Value (US$) (Depreciation) (US$)
- ------------------------------------------------------------------------------------------------------------------------------------
Sales
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Hong Kong Dollar 1,648,873 US Dollar 207,000 10/19/99 211,348 $ (4,348)
Hong Kong Dollar 762,336 US Dollar 96,000 10/19/99 97,714 (1,714)
Hong Kong Dollar 612,392 US Dollar 79,000 4/30/99 78,989 11
Hong Kong Dollar 2,741,025 US Dollar 345,000 10/19/99 351,337 (6,337)
Hong Kong Dollar 2,740,508 US Dollar 345,000 10/19/99 351,271 (6,271)
Hong Kong Dollar 4,510,202 US Dollar 567,000 10/19/99 578,105 (11,105)
Hong Kong Dollar 9,376,923 US Dollar 1,186,652 12/17/99 1,197,824 (11,172)
Hong Kong Dollar 6,886,614 US Dollar 866,513 2/24/00 877,108 (10,595)
Hong Kong Dollar 2,161,584 US Dollar 272,000 2/24/00 275,308 (3,308)
Hong Kong Dollar 459,314 US Dollar 58,000 2/24/00 58,500 (500)
Hong Kong Dollar 866,855 US Dollar 110,000 2/24/00 110,406 (406)
Hong Kong Dollar 75,000 US Dollar 9,518 2/24/00 9,552 (34)
Hong Kong Dollar 115,000 US Dollar 14,598 2/24/00 14,647 (49)
Indian Rupee 2,358,720 US Dollar 54,000 7/14/99 55,228 (1,228)
Indian Rupee 4,460,000 US Dollar 100,000 7/14/99 104,428 (4,428)
Indian Rupee 7,480,000 US Dollar 170,000 7/14/99 175,139 (5,139)
Indian Rupee 2,646,000 US Dollar 60,000 7/14/99 61,954 (1,954)
Indian Rupee 1,633,550 US Dollar 37,000 7/14/99 38,248 (1,248)
Indonesian Rupiah 34,720,000 US Dollar 3,803 4/7/99 4,014 (211)
Indonesian Rupiah 46,960,000 US Dollar 5,284 4/7/99 5,429 (145)
Indonesian Rupiah 149,600,000 US Dollar 17,000 4/7/99 17,295 (295)
Indonesian Rupiah 339,816,000 US Dollar 38,493 4/21/99 39,285 (792)
Indonesian Rupiah 35,400,000 US Dollar 4,000 4/21/99 4,092 (92)
Indonesian Rupiah 427,950,000 US Dollar 45,000 4/7/99 48,984 (3,984)
Indonesian Rupiah 385,434,000 US Dollar 42,000 4/7/99 44,117 (2,117)
Indonesian Rupiah 30,885,000 US Dollar 3,397 4/7/99 3,535 (138)
Indonesian Rupiah 90,150,000 US Dollar 9,657 4/7/99 10,319 (661)
Indonesian Rupiah 47,325,000 US Dollar 5,000 4/7/99 5,417 (417)
Indonesian Rupiah 108,012,000 US Dollar 12,000 4/7/99 12,363 (363)
Indonesian Rupiah 286,800,000 US Dollar 31,959 4/7/99 32,827 (868)
Indonesian Rupiah 46,030,000 US Dollar 5,130 4/7/99 5,269 (138)
Indonesian Rupiah 51,490,000 US Dollar 5,785 4/7/99 5,894 (108)
Indonesian Rupiah 103,180,000 US Dollar 11,528 4/7/99 11,810 (282)
Phillipines Peso 5,369,280 US Dollar 136,000 4/12/99 138,359 (2,359)
Phillipines Peso 2,439,700 US Dollar 62,000 4/12/99 62,868 (868)
Singapore Dollar 204,057 US Dollar 118,000 4/30/99 118,157 (157)
Singapore Dollar 140,000 US Dollar 81,037 4/30/99 81,065 (28)
Singapore Dollar 966,676 US Dollar 561,531 4/30/99 564,318 (2,786)
Singapore Dollar 173,473 US Dollar 100,763 4/30/99 101,269 (506)
South Korean Won 106,640,000 US Dollar 86,000 4/9/99 87,784 (1,784)
South Korean Won 245,916,000 US Dollar 198,000 4/9/99 202,433 (4,433)
South Korean Won 163,614,000 US Dollar 132,000 4/9/99 134,684 (2,684)
South Korean Won 100,532,000 US Dollar 82,000 4/12/99 82,688 (688)
South Korean Won 277,092,500 US Dollar 230,000 4/15/99 227,816 2,184
South Korean Won 49,728,000 US Dollar 42,000 4/15/99 40,885 1,115
South Korean Won 64,872,500 US Dollar 55,000 6/8/99 53,161 1,839
South Korean Won 73,370,000 US Dollar 58,000 6/8/99 60,125 (2,125)
South Korean Won 122,206,000 US Dollar 98,000 6/8/99 100,144 (2,144)
South Korean Won 41,085,000 US Dollar 33,000 2/14/00 33,668 (668)
South Korean Won 183,464,000 US Dollar 152,000 2/14/00 149,109 2,891
South Korean Won 82,144,000 US Dollar 68,000 2/14/00 66,762 1,238
Thai Baht 7,216,710 US Dollar 194,363 4/19/99 192,200 2,164
Thai Baht 335,000 US Dollar 8,874 4/19/99 8,922 (48)
Thai Baht 105,000 US Dollar 2,771 4/19/99 2,796 (25)
Thai Baht 390,000 US Dollar 10,293 4/19/99 10,387 (94)
Thai Baht 185,000 US Dollar 4,876 4/19/99 4,927 (51)
Thai Baht 1,049,440 US Dollar 28,000 4/19/99 27,949 51
Thai Baht 315,000 US Dollar 8,422 4/19/99 8,389 33
Thai Baht 460,000 US Dollar 12,248 4/19/99 12,251 (3)
Thai Baht 2,824,580 US Dollar 74,000 6/1/99 75,138 (1,138)
</TABLE>
16
<PAGE>
- --------------------------------------------------------------------------------
Pacific Basin Equity Portfolio
Notes to Financial Statements (unaudited)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Net Unrealized
Appreciation
Contracts to Deliver In Exchange For Settlement Date Value (US$) (Depreciation) (US$)
- ----------------------------------------------------------------------------------------------------------------------------------
Sales
- ----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Taiwan Dollar 1,857,856 US Dollar 56,014 4/1/99 56,052 $ (39)
Taiwan Dollar 6,774,075 US Dollar 204,235 4/1/99 204,377 (142)
Taiwan Dollar 3,205,365 US Dollar 97,000 2/11/00 94,655 2,345
Taiwan Dollar 3,200,515 US Dollar 97,000 2/11/00 94,511 2,489
Taiwan Dollar 3,374,160 US Dollar 102,000 2/11/00 99,639 2,361
Taiwan Dollar 3,374,874 US Dollar 102,000 2/11/00 99,660 2,340
Taiwan Dollar 2,715,430 US Dollar 82,000 2/11/00 80,187 1,813
Taiwan Dollar 1,285,920 US Dollar 38,000 2/11/00 37,973 27
- ----------------------------------------------------------------------------------------------------------------------------------
Total Sales $ (80,316)
- ----------------------------------------------------------------------------------------------------------------------------------
Purchases
- ----------------------------------------------------------------------------------------------------------------------------------
Hong Kong Dollar 2,690,411 US Dollar 347,092 4/30/99 347,020 $ (72)
Hong Kong Dollar 70,000 US Dollar 9,030 4/30/99 9,029 (1)
Hong Kong Dollar 783,033 US Dollar 101,000 4/30/99 100,999 (1)
Hong Kong Dollar 2,085,436 US Dollar 269,000 4/30/99 268,988 (12)
Hong Kong Dollar 2,227,120 US Dollar 280,000 10/19/99 285,466 5,466
Hong Kong Dollar 798,900 US Dollar 100,000 10/19/99 102,401 2,401
Hong Kong Dollar 9,376,923 US Dollar 1,192,993 10/19/99 1,201,908 8,915
Hong Kong Dollar 1,427,112 US Dollar 180,000 12/17/99 182,302 2,302
Hong Kong Dollar 350,865 US Dollar 44,000 12/17/99 44,820 820
Hong Kong Dollar 712,332 US Dollar 90,000 12/17/99 90,994 994
Hong Kong Dollar 6,886,614 US Dollar 872,496 12/17/99 879,707 7,211
Indian Rupee 7,992,000 US Dollar 180,000 7/14/99 187,127 7,127
Indian Rupee 11,112,500 US Dollar 250,000 7/14/99 260,191 10,191
Indian Rupee 8,880,000 US Dollar 200,000 7/14/99 207,919 7,919
Indonesian Rupiah 46,960,000 US Dollar 5,309 4/1/99 5,429 120
Indonesian Rupiah 339,816,000 US Dollar 38,916 4/7/99 39,285 369
Indonesian Rupiah 256,720,000 US Dollar 29,851 4/7/99 29,384 (467)
Indonesian Rupiah 258,450,000 US Dollar 30,000 4/7/99 29,582 (418)
Indonesian Rupiah 141,300,000 US Dollar 15,000 4/7/99 16,173 1,173
Indonesian Rupiah 481,250,000 US Dollar 50,000 4/7/99 55,084 5,084
Indonesian Rupiah 89,300,000 US Dollar 10,000 4/7/99 10,221 221
Indonesian Rupiah 144,800,000 US Dollar 16,000 4/7/99 16,574 574
Indonesian Rupiah 96,900,000 US Dollar 10,000 4/7/99 11,091 1,091
Phillipines Peso 2,492,800 US Dollar 64,000 4/12/99 64,330 330
Singapore Dollar 140,000 US Dollar 80,855 4/1/99 81,065 211
Singapore Dollar 81,308 US Dollar 47,000 4/16/99 47,080 80
Singapore Dollar 195,176 US Dollar 113,000 4/30/99 113,938 938
Singapore Dollar 10,348 US Dollar 6,000 4/30/99 6,041 41
South Korean Won 220,500,000 US Dollar 175,000 4/9/99 181,511 6,511
South Korean Won 165,792,000 US Dollar 132,000 4/9/99 136,477 4,477
South Korean Won 129,878,000 US Dollar 104,404 4/9/99 106,913 2,510
South Korean Won 47,892,000 US Dollar 39,000 4/12/99 39,391 391
South Korean Won 71,340,000 US Dollar 60,000 4/15/99 58,653 (1,347)
South Korean Won 128,957,000 US Dollar 108,641 4/15/99 106,024 (2,617)
South Korean Won 126,523,500 US Dollar 106,322 4/15/99 104,023 (2,299)
South Korean Won 120,183,000 US Dollar 97,000 6/8/99 98,486 1,486
Taiwan Dollar 6,774,075 US Dollar 204,000 4/1/99 204,344 344
Taiwan Dollar 1,857,856 US Dollar 56,000 4/1/99 56,043 43
Taiwan Dollar 2,682,050 US Dollar 79,000 2/11/00 79,201 201
Taiwan Dollar 1,761,760 US Dollar 52,000 2/11/00 52,025 25
Thai Baht 620,000 US Dollar 16,471 4/19/99 16,496 25
Thai Baht 75,340 US Dollar 2,000 4/19/99 2,005 5
Thai Baht 75,000 US Dollar 2,009 4/19/99 1,997 (12)
Thai Baht 1,777,540 US Dollar 47,000 4/19/99 47,340 340
Thai Baht 935,375 US Dollar 25,000 4/19/99 24,911 (89)
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Total Purchases $ 72,604
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Net Unrealized Depreciation $ (7,712)
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</TABLE>
17
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Pacific Basin Equity Portfolio
Notes to Financial Statements (unaudited)
- --------------------------------------------------------------------------------
Note 5--Risks of Investing in Emerging Markets
The risks involved when investing in emerging markets are of a nature generally
not encountered when investing in securities traded on major international
markets.
Investment in securities of issuers based in underdeveloped emerging markets
involves special risks and considerations not typically associated with
investing in U.S. companies. These risks include: (i) greater risks of
expropriation, confiscatory taxation, nationalization, and less social,
political and economic stability; (ii) the smaller size of the market for such
securities and a low or nonexistent volume of trading, resulting in lack of
liquidity and in price volatility. Additionally, developments affecting emerging
market investments cannot always be foreseen.
Note 6--Subsequent Event
Subsequent to period end, the portfolio entered into a $100,000,000 364-day
senior unsecured committed revolving credit facility ("the facility") with two
lenders. The borrowings shall bear interest at a rate based on the Federal Funds
rate. A commitment fee is charged on the unused portion of the facility. The
facility replaces the revolving credit facility described in footnote 2.
18
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Investment Advisor and Administrator of the Portfolio
BANKERS TRUST COMPANY
130 Liberty Street
New York, NY 10006
Distributor
ICC DISTRIBUTORS, INC.
Two Portland Square
Portland, ME 04101
Custodian and Transfer Agent
BANKERS TRUST COMPANY
130 Liberty Street
New York, NY 10006
Independent Accountants
PRICEWATERHOUSECOOPERS LLP
250 West Pratt Street
Baltimore, MD 21201
Counsel
WILLKIE FARR & GALLAGHER
787 7th Avenue
New York, NY 10019
[LOGO]
[For information on how to invest, shareholder account information and current
price and yield information, please contact your relationship manager or write
to us at: BT Service Center
P.O. Box 419210
Kansas City, MO 64141-6210
or call our toll-free number: 1-800-730-1313
This report must be preceded or accompanied by a current prospectus for the
Fund.]
Pacific Basin Equity Fund CUSIP #055922736
BT Investment Funds 496 SA (3/99)
Distributed by:
ICC Distributors, Inc.
Two Portland Square
Portland, ME 04101
