STEIN ROE MUTUAL FUNDS
ANNUAL REPORT
September 30,2000
STEIN ROE EQUITY FUND
INTERNATIONAL FUNDS
INTERNATIONAL FUND
[STEIN ROE LOGO]
STEIN ROE MUTUAL FUNDS
SENSIBLE RISKS. INTELLIGENT INVESTMENTS.(R)
<PAGE>
Contents
--------------------------------------------------------------------------------
From the President................................................ 1
Stephen E. Gibson's thoughts on international investing
Performance Summary............................................... 2
Questions & Answers............................................... 3
International Fund -- An interview with Portfolio
Managers Charles Roberts, Michael Ellis and Deborah Snee
Fund Highlights.................................................. 6
Portfolio of Investments.......................................... 8
A complete list of investments with market values
Financial Statements.............................................. 13
Statements of assets and liabilities, operations
and changes in net assets
Notes to Financial Statements..................................... 19
Financial Highlights.............................................. 24
Selected per-share data and ratios
Report of Independent Accountants................................. 26
Must be preceded or accompanied by a prospectus.
<PAGE>
From the President
--------------------------------------------------------------------------------
TO OUR SHAREHOLDERS
It was a challenging year for the Stein Roe International Fund, and for
international funds in general. The Fund underperformed its benchmark, the
Morgan Stanley Capital International Europe Australia Far East (MSCI EAFE) Index
for the 12-month period ended September 30, 2000.1 While this 12-month
performance was disappointing, we began to see some improvement in the final
three months of the period as the Fund's new management team implemented its
strategy. The Fund was working against a negative backdrop that was
characterized by a worldwide decline among technology, media, and
telecommunications (TMT) stocks in the spring of 2000.
The sector showed volatility throughout the period and we reduced our
holdings accordingly. In spite of this, we remain optimistic on certain TMT
companies that we believe exhibit a high potential for growth.
On the following pages, Charles R. Roberts, Michael Ellis and Deborah F.
Snee, portfolio managers of the Fund since March 15, 2000, provide additional
details on the Fund's recent performance and strategy.
Thank you for choosing the Stein Roe International Fund and for giving us the
opportunity to serve your investment needs.
Sincerely,
/S/ Stephen E. Gibson
Stephen E. Gibson
President
November 17, 2000
1 See benchmark index chart on page 2 for performance results.
Because economic and market conditions change frequently, there can be
no assurance that the trends described in this report will continue or come to
pass.
Stephen E. Gibson
[STEPHEN GIBSON PHOTO]
1
<PAGE>
Fund Performance
--------------------------------------------------------------------------------
AVERAGE ANNUAL TOTAL RETURNS
Period Ended September 30, 2000
ONE FIVE LIFE
YEAR YEARS OF FUND
----------------------------------------
INTERNATIONAL FUND -8.58% 3.79% 3.59%
Morningstar Foreign Stock Category 12.97 10.81 9.45
--------------------------------------------------------------------------------
Investment Comparison
--------------------------------------------------------------------------------
GROWTH OF A $10,000 INVESTMENT March 1, 1994 - September 30, 2000
--------------------------------------------------------------------------------
Stein Roe International Fund
Stein
Roe Morningstar MSCI
10000 10000 10000
3/31/94 9760 9577.1 9771
10030.4 9818.83 9826.69
10140.7 9790.55 10055.7
6/30/94 9990.6 9685.3 9868.62
10360.3 9947.96 10146.9
10730.1 10230.1 10433.1
9/30/94 10609.9 9983.65 10424.7
10700.1 10170.7 10456
10050.6 9674.51 9629.96
12/31/94 10096.9 9588.7 9711.82
9370.9 9136.69 9206.8
9289.37 9147.28 9507.87
3/31/95 9534.61 9443.93 9890.08
9861.65 9749.72 10215.5
9912.93 9835.03 10369.7
6/30/95 9994.21 9840.54 10447.5
10627.8 10360.2 10864.3
10290.9 10171.7 10757.9
9/30/95 10475.1 10322.7 10651.4
10158.8 10119.3 10152.9
10128.3 10223.9 10585.4
12/31/95 10489.9 10525.4 10977.1
10634.7 10766.4 11338.2
10654.9 10822.2 11424.4
3/31/96 10913.8 11005.5 11855.1
11503.1 11362.3 12121.8
11472.1 11356.3 12130.3
6/30/96 11575.3 11431.8 11888.9
11068.3 11014.4 11293.3
11223.3 11144.6 11759.7
9/30/96 11336.6 11377 11906.7
11098.6 11319.9 12355.6
11512.5 11801.5 13011.6
12/31/96 11364 11845.7 13243.3
11437.9 11841.3 13443.2
11554.6 12004.7 13062.8
3/31/97 11585.8 12029.7 12976.6
11522 12048.9 13005.1
12335.5 12752.6 13993.5
6/30/97 12926.4 13332.8 14505.7
12926.4 13690.1 15183.1
12017.6 12756.6 14495.3
9/30/97 12450.3 13523.5 15496.9
11510.3 12539.2 14562.5
11130.4 12403.2 14046.9
12/31/97 10963.5 12479.4 14028.7
11337.3 12778.5 14239.1
11948.4 13636.5 14951.1
3/31/98 12673.7 14359.8 15885.5
12912 14580.8 16073
12810 14630.9 16048.8
6/30/98 12470.5 14495.4 15957.4
12867 14694.3 16097.8
10805.8 12608 13844.1
9/30/98 10375.7 12142.9 13244.7
11214 13024.2 14395.6
11802.8 13685.7 15006
12/31/98 12224.1 14105.9 15508.7
12350 14240.6 15559.9
11880.7 13907.8 15027.7
3/31/99 12315.6 14398.5 15419.9
13047.1 15112.2 16116.9
12497.8 14518.6 15332
6/30/99 13252.7 15327.4 16181.4
13606.5 15756.3 16472.7
13881.4 15916 16485.9
9/30/99 13800.9 16008.5 16396.8
14166.6 16612.7 16954.3
14944.4 18021.1 17968.2
12/31/99 16343.1 20232.3 20039.9
15256.3 19287.4 18358.6
15617.9 20755.2 19085.6
3/31/00 15104.1 20742.6 19301.3
13936.5 19311.9 17913.5
13107.3 18635.1 17467.4
6/30/00 13212.2 19483.1 17505.9
12896.4 18817.2 16945.7
13037 19197.5 17035.5
9/30/00 12618 18119.4 16206
PAST PERFORMANCE IS NO GUARANTEE OF FUTURE RESULTS. SHARE PRICE AND INVESTMENT
RETURN WILL VARY, SO YOU MAY HAVE A GAIN OR LOSS WHEN YOU SELL YOUR SHARES. The
above illustration assumes a $10,000 investment made on March 1, 1994 (February
28, 1994 for the Index and Morningstar category), and reinvestment of income and
capital gains distributions. The MSCI EAFE Index is an unmanaged group of
foreign securities that differs from the composition of any Stein Roe Fund; it
is not available for direct investment. Foreign investing involves market,
political, currency and accounting risks not associated with domestic
securities.
The Fund's return is also compared to the average return of the funds included
in the Morningstar Foreign Stock Funds category average (Morningstar Average).
This Morningstar Average is composed of Funds with similar investment styles as
measured by their underlying portfolio holdings. Morningstar does not warrant
their information to be accurate, correct, complete or timely. They shall not be
responsible for investment decisions, damages or other losses resulting from use
of the averages. Morningstar, Inc. has not granted consent for it to be
considered or deemed an "expert" under the Securities Act of 1933. Sales charges
are not reflected in the Morningstar averages. Source: Morningstar.
2
<PAGE>
Questions & Answers
--------------------------------------------------------------------------------
AN INTERVIEW WITH CHARLES R. ROBERTS, MICHAEL ELLIS AND DEBORAH F. SNEE,
PORTFOLIO MANAGERS OF THE STEIN ROE INTERNATIONAL FUND AND SR&FINTERNATIONAL
PORTFOLIO
Effective March 15, 2000, Charles R. Roberts, Michael Ellis and Deborah F. Snee
replaced Nicholas Ghajar as co-managers of the Fund. On that date, each of the
co-managers became joint employees of Newport Fund Management, Inc., Stein Roe &
Farnham, Inc. and Colonial Management Associates, Inc. (Colonial), an affiliate
of Stein Roe. Both Colonial and Stein Roe are indirect, wholly-owned
subsidiaries of Liberty Financial Companies.
Q: HOW DID THE FUND PERFORM DURING THE 12 MONTHS ENDED SEPTEMBER 30, 2000?
A: The Fund's total return was negative 8.58% compared to positive 3.18% for its
benchmark, the MSCI EAFE Index. While the 12-month return was disappointing, we
were encouraged by the Fund's improved perfor mance relative to its benchmark in
the final three months of the period.
FUND DATA
INVESTMENT OBJECTIVE:
Stein Roe International Fund seeks long-term growth and invests all of its
assets in SR&F International Portfolio. The Portfolio invests primarily in
stocks of large foreign companies. It seeks broad diversification both in
terms of countries and issuers.
FUND INCEPTION:
March 1, 1994
NET ASSETS:
$102.3 million
Q: WHAT FACTORS CONTRIBUTED MOST SIGNIFICANTLY TO THE FUND'S PERFORMANCE?
A: As with most international stock funds, the Fund's performance was hurt by
the decline in the technology, media and telecommunications (TMT) sector during
the second quarter of 2000. These stocks had an impressive rise during the last
quarter of 1999, but ultimately, their lofty valuations could not be justified.
TMT companies declined because they added a sizable amount of debt to their
balance sheets in order to buy third generation cellular system licenses. These
systems
[CHARLES R. ROBERTS PHOTO]
[MICHAEL ELLIS PHOTO]
[DEBORAH F. SNEE PHOTO]
3
<PAGE>
Questions & Answers Continued
--------------------------------------------------------------------------------
are designed to carry high-speed data, and the licenses have recently
sold for prices far above what was originally expected. Subsequently,
bottom-line earnings for some TMT companies decreased and their balance sheets
became too unstable to warrant investment by the Fund. As a result, we began to
shift emphasis away from TMT securities towards other sectors such as utilities,
financial services and consumer products.
Q: WHAT CHANGES HAVE YOU MADE TO THE FUND SINCE YOU TOOK OVER IN MARCH?
A: Consistent with the Fund's investment strategy, we look for those stocks we
believe exhibit the highest potential for growth. During the period our focus
was on stocks with these characteristics in the technology, telecommunications,
financial services, health care, business services and consumer products
sectors. At March 31, 2000 we reported that the Fund had a heavy concentration
in cyclical companies, such as paper and housing, in anticipation of a rebound
in Europe and Japan. That rebound was not forthcoming, however, and the Fund
underperformed. Since that time, we reallocated a greater portion of the
portfolio's holdings first to the TMT sector, and then to the utilities,
consumer products and financial service sectors, including Banca Fideuram, SpA
(2.1% of net assets). The company is a European money management firm that we
believe is positioned to benefit from the privatization of Europe's pension
assets.
Q: HAS THE DECLINE OF THE EURO DURING THE PERIOD AFFECTED INVESTMENT IN THE
REGION?
A: Based on the Fund's significant exposure to European securities, the fall of
the euro certainly deserves our attention. However, the landscape across Europe
was not formed simply by the plight of the euro. Rising inflation fears were a
concern for the region, and the European Central Bank raised interest rates 0.5%
in June 2000 in response.
On a more positive note, Germany introduced the first of what we hope will be
a waterfall of legislation designed to relieve the tax burden on investors.
Specifically, the corporate tax rate levied on German companies was decreased
from 40% to 25% and the capital gains tax will be phased out completely by the
year 2002. The result on German companies will be lower tax bills, which should
make them competitive globally. Finally, we believe the portion of the portfolio
allocated to European securities will benefit from the privatization of European
pension plans. Europe currently recognizes
4
<PAGE>
Questions & Answers Continued
--------------------------------------------------------------------------------
some of the lowest rates of privately run pension funds in the world.
Q: HOW HAS THE PACIFIC RIM PERFORMED DURING THE PERIOD?
A: The returns of the Pacific Rim countries, particularly Japan, were
disappointing during the period. Japan does not have the interest rate concerns
that are prevalent in both Europe and the U.S., however, being home to a high
concentration of TMT companies currently plagues Japan, and its markets have
been most affected by the retreat of the sector. Our Japanese holdings (19.4% of
net assets) also detracted from Fund performance by failing to take aggressive
action with regard to pension plan reforms similar to those in Europe.
An example of our commitment to the Pacific Rim region is Hong Kong China Gas
(1.0% of net assets) which has been a major player in Asian gas exploration. We
established a position in this security because it was inexpensive compared to
its peers, it had an established, quality management structure, and it boasted a
stable balance sheet and earnings growth.
Q: WHAT IS YOUR OUTLOOK FOR THE MONTHS AHEAD?
A: We mentioned the aggressive move by Germany to significantly reduce the tax
burden on investors. We believe it will also allow companies to divest holdings
that would otherwise have created a tremendous tax burden at the time the
holdings are sold off. We believe this trend will continue throughout Europe,
with other countries adopting similar tax legislation. We believe the Fund's
holdings should benefit from such events.
In addition, we are optimistic regarding the prospects of both Japan and TMT
securities. The Japanese economy has, over the last 12 months, shown signs of
resuscitation including rising consumer sentiment, and an indication of consumer
economic growth. We believe that both have an opportunity to continue.
PAST PERFORMANCE IS NO GUARANTEE OF FUTURE RESULTS. Share price and investment
returns will vary, so you may have a gain or loss when you sell shares.
Portfolio holdings are as of 9/30/00 and are subject to change. Foreign
investments involve market, political and currency risks not generally
associated with domestic securities. Emerging market investing also involves
these risks, and emerging market equities are generally more volatile and less
liquid than securities in either the U.S. or countries with established equity
markets.
5
<PAGE>
Fund Highlights as of September 30, 2000
--------------------------------------------------------------------------------
SR&F International Portfolio
TOP 10 EQUITY HOLDINGS (% OF NET ASSETS)
--------------------------------------------------------------------------------
Sanofi-Synthelabo SA 3.2 Kao Corp 2.4
Takeda Chemical Industries Ltd 2.8 Murata Manufacturing Co Ltd 2.2
Vodafone Group 2.6 Nestle AG 2.2
Numico NV 2.5 Yamanouchi Pharmaceutical 2.2
NTT DoCoMo Inc 2.4 Munich Reinsurance 2.1
--------------------------------------------------------------------------------
EQUITY PORTFOLIO HIGHLIGHTS
MSCI
PORTFOLIO EAFE INDEX
-----------------------------------
Number of Holdings 78 923
Dollar Weighted Median Market
Capitalization ($mil.) 63,379.8 35,888.8
--------------------------------------------------------------------------------
ECONOMIC SECTOR BREAKDOWN
MSCI
Portfolio EAFE Index
Capital Goods 1.03 Basic Materials 4.23
Communications Services 9.05 Capital Goods 7.34
Consumer Cyclical 8.92 Communications Services 10.97
Consumer Staples 19.59 Consumer Cyclical 10.6
Financial 18.2 Consumer Staples 10.79
Health Care 19.51 Energy 5.87
Technolog 21.38 Financial 22.00
Utilities 2.33 Health Care 8.67
Technology 12.9
Transporation 2.03
Utilities 3
Unclassified (Other) 0.17
--------------------------------------------------------------------------------
ASSET ALLOCATION
September 30, 1999 September 30, 2000
Cash Equivalents 9.6% Cash Equivalents 5%
Equities 90.4% Equities 95%
6
<PAGE>
Fund Highlights Continued
--------------------------------------------------------------------------------
Country Allocations
International MSCI EAFE
Fund Index
United Kindgon 22 20.9
Japan 20.4 26.3
France 13.3 11.2
Germany 8.2 8.3
Netherlands 7.9 5.4
Switzerland 6.9 5.8
Sweden 4 3
Italy 3.3 4.3
Hong Kong 3.3 2.1
Finland 2 2.6
Canada 1.9 0
Singapore 1.4 1
Spain 1.3 3.1
Beligium 1.3 0.8
Denmark 1.1 0.9
South Korea 1 0
Other 0.7 4.3
Note: Holdings are disclosed as a percentage of SR&F International Portfolio's
total investments. The MSCI EAFE Index is an unmanaged group of international
securities that differs from the composition of any Stein Roe fund; it is not
available for direct investment. The MSCI EAFE Index has holdings in countries
in which the Fund does not invest.
7
<PAGE>
SR&F International Portfolio
--------------------------------------------------------------------------------
Investment Portfolio
September 30, 2000 (in thousands)
COMMON STOCKS - 94.2% COUNTRY SHARES VALUE
--------------------------------------------------------------------------------
BANKS - 7.8%
BANKS
Banca Fideuram SPA.................. It 120 $ 1,990
Deutsche Bank AG.................... G 20 1,700
HSBC Holdings PLC................... UK 110 1,553
Lloyds TSB Group PLC................ UK 60 566
Standard Chartered PLC.............. UK 37 537
UCB SA.............................. Be 31 1,081
--------
7,427
--------
CAPITAL GOODS - 0.8%
TRADING COMPANIES & DISTRIBUTORS
Electrocomponents PLC............... UK 67 714
--------
COMMERCIAL SERVICES & SUPPLIES - 6.7%
DIVERSIFIED COMMERCIAL SERVICES - 4.2%
ISS A/S (a)......................... De 16 1,009
Secom Co., Ltd...................... Ja 25 2,008
Securitas AB, Class B............... Sw 46 1,009
--------
4,026
--------
EMPLOYMENT SERVICES - 2.5%
Adecco SA........................... Sz 2 993
Capita Group PLC.................... UK 152 1,340
--------
2,333
--------
CONSTRUCTION MATERIALS - 0.0%
CONSTRUCTION MATERIALS
Southeast Asia Cement Holdings, Inc. (a) Ph (b) (b)
--------
CONSUMER DURABLES & APPAREL - 4.2%
APPAREL & ACCESSORIES - 2.6%
Christian Dior SA................... Fr 27 1,448
Li & Fung Ltd-New (a)............... HK 496 1,047
--------
2,495
--------
CONSUMER ELECTRONICS - 1.6%
Sony Corp........................... Ja 15 1,519
--------
DIVERSIFIED FINANCIALS - 2.6%
CONSUMER FINANCE - 0.0%
Orix Corp........................... Ja (b) 9
--------
DIVERSIFIED FINANCIAL SERVICES - 1.6%
Fortis Bank Nederland (a)........... Ne 3 (b)
Fortis B-NPV VVPR STRIP............. Be 117 1
Fortis (B) CVG (a).................. Be 13 62
Fortis (NL) NV...................... Ne 47 1,431
--------
1,494
--------
MULTI-SECTOR HOLDINGS - 1.0%
Hutchison Whampoa Ltd............... HK 70 934
--------
8
<PAGE>
SR&F International Portfolio Continued
--------------------------------------------------------------------------------
COUNTRY SHARES VALUE
--------------------------------------------------------------------------------
DIVERSIFIED TELECOM SERVICES - 3.3%
INTEGRATED TELECOM SERVICES
Colt Telecom Group PLC (a).......... UK 21 $ 609
Energis PLC (a)..................... UK 55 386
Telecom Italia SPA.................. It 176 958
Telefonica de Espana................ Sp 20 1,216
--------
3,169
--------
FOOD, BEVERAGES & TOBACCO - 7.4%
BREWERS - 1.7%
Heineken NV......................... Ne 29 1,601
--------
PACKAGED FOODS - 5.7%
Groupe Danone (a)................... Fr 7 948
Nestle AG........................... Sz 1 2,079
Numico NV........................... Ne 46 2,380
--------
5,407
--------
FOOD & DRUG RETAILING - 1.6%
FOOD RETAIL
Carrefour SA........................ Fr 21 1,541
--------
HOUSEHOLD & PERSONAL PRODUCTS - 4.1%
HOUSEHOLD PRODUCTS - 2.4%
Kao Corp............................ Ja 83 2,263
--------
PERSONAL PRODUCTS - 1.7%
L'Oreal SA.......................... Fr 21 1,660
--------
INSURANCE - 9.2%
LIFE & HEALTH INSURANCE - 1.8%
Aegon NV............................ Ne 46 1,719
--------
MULTI-LINE INSURANCE - 5.3%
AXA................................. Fr 11 1,423
Allied Zurich PLC................... UK 117 1,328
CGNU PLC............................ UK 91 1,285
Skandia Forsakrings AB.............. Sw 47 939
--------
4,975
--------
REINSURANCE - 2.1%
Munich Reinsurance.................. G 7 2,012
--------
MEDIA - 1.1%
BROADCASTING & CABLE - 0.6%
Carlton Communications PLC.......... UK 72 563
--------
PUBLISHING & PRINTING - 0.5%
Singapore Press Holdings Ltd........ Si 35 522
--------
PHARMACEUTICALS & BIOTECHNOLOGY - 17.5%
PHARMACEUTICALS
Altana AG........................... G 17 1,874
AstraZeneca Group PLC............... UK 25 1,314
Glaxo Wellcome PLC.................. UK 34 1,014
9
<PAGE>
SR&F International Portfolio Continued
--------------------------------------------------------------------------------
COUNTRY SHARES VALUE
--------------------------------------------------------------------------------
PHARMACEUTICALS & BIOTECHNOLOGY (CONTINUED)
PHARMACEUTICALS (CONTINUED)
Novartis............................ Sz 1 $ 1,454
Sanofi-Synthelabo SA................ Fr 56 3,030
Serono SA Bearer Shares............. Sz 1 1,662
SmithKline Beecham PLC.............. UK 117 1,580
Takeda Chemical Industries Ltd...... Ja 40 2,640
Yamanouchi Pharmaceutical Co........ Ja 43 2,067
--------
16,635
--------
SOFTWARE & SERVICES - 7.7%
APPLICATIONS SOFTWARE - 4.2%
Baltimore Technologies PLC (a)...... UK 33 334
Check Point Software Technologies Ltd. (a) 3 517
Hitachi Software Engineering Co., Ltd. Ja 12 1,435
SAP AG.............................. G 7 1,333
Trend Micro, Inc. ADR (a)........... Ja 28 361
--------
3,980
--------
INTERNET SOFTWARE & SERVICES - 0.3%
Intershop Communications AG (a)..... G 2 142
Pixelpark AG (a).................... G 2 130
--------
272
--------
IT CONSULTING & SERVICES - 3.2%
Altran Technologies SA.............. Fr 5 988
CMG PLC............................. UK 52 1,005
Cap Gemini S.A...................... Fr 5 954
Infosys Technologies Ltd. ADR....... In 1 119
--------
3,066
--------
TECHNOLOGY HARDWARE & EQUIPMENT - 12.7%
ELECTRONIC EQUIPMENT & INSTRUMENTS - 1.1%
Spirent PLC......................... UK 107 1,052
--------
NETWORKING EQUIPMENT - 0.8%
Datacraft Asia Ltd.................. Si 89 737
--------
OFFICE ELECTRONICS - 1.9%
Canon, Inc.......................... Ja 40 1,771
--------
SEMICONDUCTORS - 2.7%
Arm Holdings PLC (a)................ UK 46 504
Murata Manufacturing Co., Ltd....... Ja 15 2,093
--------
2,597
--------
TELECOMMUNICATIONS EQUIPMENT - 6.2%
ADVA AG Optical Networking (a)...... G 2 193
LM Ericsson Telecommunications (a).. Sw 107 1,630
Marconi PLC......................... UK 44 580
Nokia OYJ (a)....................... Fi 46 1,847
Nortel Networks Corp................ Ca 29 1,703
--------
5,953
--------
10
<PAGE>
SR&F International Portfolio Continued
--------------------------------------------------------------------------------
COUNTRY SHARES VALUE
--------------------------------------------------------------------------------
UTILITIES - 2.2%
GAS UTILITIES
Centrica PLC........................ UK 353 $ 1,121
Hong Kong & China Gas Co., Ltd...... HK 786 983
--------
2,104
--------
WIRELESS TELECOM SERVICES - 5.3%
WIRELESS TELECOM SERVICES
NTT Mobile Communication Network, Inc. Ja (b) 2,292
SK Telecom Co., Ltd................. Ko 1 234
Vodafone AirTouch PLC............... UK 679 2,507
--------
5,033
-------
TOTAL COMMON STOCKS (cost of $78,933).. 89,583
--------
--------------------------------------------------------------------------------
PREFERRED STOCK -- 0.8%
TECHNOLOGY HARDWARE & EQUIPMENT - 0.8%
SEMICONDUCTORS
Samsung Electronics (cost of $84)... Ko 9 704
--------
--------------------------------------------------------------------------------
WARRANTS - 0.0%
BANKS - 0.0%
BANKS
Siam Commercial Bank (cost of $0)... Th 67 6
--------
--------------------------------------------------------------------------------
TOTAL INVESTMENTS (cost of $77,822)(c). 90,293
--------------------------------------------------------------------------------
SHORT-TERM OBLIGATIONS - 5.5% PAR
Repurchase agreement with SBC Warburg Ltd., dated
09/29/00, due 10/02/00 at 6.500%, collateralized
by U.S. Treasury notes with various maturities to
2017, market value $5,356
(repurchase proceeds $5,263)........ $5,260 5,260
--------
--------------------------------------------------------------------------------
Other Assets & Liabilities, Net - (0.5)% (484)
--------
NET ASSETS -100.0%..................... $ 95,069
========
--------------------------------------------------------------------------------
11
<PAGE>
SR&F International Portfolio Continued
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
NOTES TO INVESTMENT PORTFOLIO:
--------------------------------------------------------------------------------
(a) Non-income producing.
(b) Rounds to less than one.
(c) Cost for federal income tax purposes is $78,309.
SUMMARY OF SECURITIES
BY COUNTRY COUNTRY VALUE % OF TOTAL
---------- ------- ----- ---------
United Kingdom...................... UK $19,892 22.0
Japan............................... Ja 18,458 20.4
France.............................. Fr 11,992 13.3
Germany............................. G 7,384 8.2
Netherlands......................... Ne 7,131 7.9
Switzerland......................... Sz 6,188 6.9
Sweden.............................. Sw 3,578 4.0
Hong Kong........................... HK 2,964 3.3
Italy............................... It 2,948 3.3
Finland............................. Fi 1,847 2.0
Canada.............................. Ca 1,703 1.9
Singapore........................... Si 1,259 1.4
Spain............................... Sp 1,216 1.3
Belgium............................. Be 1,144 1.3
Denmark............................. De 1,009 1.1
Korea............................... Ko 938 1.0
United States....................... 517 0.6
Indonesia........................... In 119 0.1
Thailand............................ Th 6 0.0
Philippines......................... Ph (b) 0.0
-------- --------
$90,293 100.0
-------- --------
Acronym Name
ADR American Depositary Receipt
STRIP Separately Traded Receipt of
Interest and Principal
See notes to financial statements.
12
<PAGE>
SR&F International Portfolio
--------------------------------------------------------------------------------
Statement of Assets and Liabilities
September 30, 2000
(All amounts in thousands)
ASSETS
Investments, at market value (cost $77,822)...................... $ 90,293
Short-term obligations........................................... 5,260
Cash including foreign currencies (cost $10)..................... 514
Receivable for:
Investments sold.............................................. 44
Dividends..................................................... 118
Interest and reclaims......................................... 2
--------
Total Assets.................................................. 96,231
--------
LIABILITIES
Payable for investments purchased................................ 1,058
Accrued for:
Management fee ............................................... 72
Transfer agent fee............................................ 1
Bookkeeping fee............................................... 2
Other............................................................ 29
--------
Total Liabilities............................................. 1,162
--------
Net Assets.................................................... $ 95,069
========
See notes to financial statements.
13
<PAGE>
SR&F International Portfolio
--------------------------------------------------------------------------------
Statement of Operations
For the Year Ended September 30, 2000
(All amounts in thousands)
INVESTMENT INCOME
Dividends......................................... $ 1,873
Interest.......................................... 683
-------
Total investment income (net of nonreclaimable
foreign taxes withheld at source of $222)... 2,556
EXPENSES
Management fee.................................... $ 1,062
Bookkeeping fees.................................. 27
Audit fees........................................ 16
Legal fees........................................ 3
Custodian fee..................................... 103
Transfer agent fees............................... 6
Trustees' fees.................................... 14
Other............................................. 6 1,237
------- -------
Net Investment Income.......................... 1,319
-------
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS
Net realized gain (loss) on:
Investments.................................... 1,057
Foreign currency transactions.................. (569)
-------
Net Realized Gain............................ 488
Net change in unrealized appreciation/depreciation
during the period on:
Investments.................................... (3,491)
Foreign currency transactions.................. (47)
-------
Net Change in Unrealized Appreciation/Depreciation (3,538)
-------
Net Loss....................................... (3,050)
-------
Decrease in net assets resulting from operations.. $(1,731)
=======
See notes to financial statements.
14
<PAGE>
SR&F International Portfolio
--------------------------------------------------------------------------------
Statement of Changes in Net Assets
(All amounts in thousands)
<TABLE>
<CAPTION>
YEAR ENDED YEAR ENDED
SEPTEMBER 30, SEPTEMBER 30,
2000 1999
------------ -------------
<S> <C> <C>
OPERATIONS
Net investment income............................. $ 1,319 $ 2,043
Net realized gain on investments and foreign
currency transactions.......................... 488 11,812
Net change in unrealized appreciation/depreciation
on investments and foreign currency transactions (3,538) 22,685
--------- ---------
Net Increase (Decrease) from Operations........... (1,731) 36,540
--------- ---------
NET TRANSACTIONS IN INVESTORS' BENEFICIAL INTEREST
Contributions..................................... 542,376 152,210
Withdrawals....................................... (558,024) (191,012)
--------- ---------
Net decrease from transactions in investors'
beneficial interest............................ (15,648) (38,802)
--------- ---------
Net decrease in net assets..................... (17,379) (2,262)
NET ASSETS
Beginning of period............................... 112,448 114,710
--------- ---------
End of period..................................... $ 95,069 $112,448
========= =========
</TABLE>
See notes to financial statements.
15
<PAGE>
Stein Roe International Fund
--------------------------------------------------------------------------------
Statement of Assets and Liabilities
September 30, 2000
(All amounts in thousands, except per-share data)
ASSETS
Investment in Portfolio, at value............................... $ 94,940
Receivable for Fund shares sold................................. 7,857
Other........................................................... 15
----------
Total Assets................................................. 102,812
----------
LIABILITIES
Payable for Fund shares repurchased............................. 469
Accrued:
Administration fee........................................... 13
Bookkeeping fee.............................................. 2
Transfer agent fee........................................... 22
Other........................................................... 42
----------
Total Liabilities............................................ 548
----------
Net Assets................................................... $102,264
========
Shares outstanding (unlimited number authorized)................ 9,471
----------
Net asset value per share....................................... $ 10.80
----------
ANALYSIS OF NET ASSETS
Paid-in capital................................................. $ 90,713
Undistributed net investment income............................. 477
Accumulated net realized loss allocated from Portfolio.......... (1,362)
Net unrealized appreciation allocated from Portfolio ........... 12,436
----------
$102,264
========
See notes to financial statements.
16
<PAGE>
Stein Roe International Fund
--------------------------------------------------------------------------------
Statement of Operations
For the Year Ended September 30, 2000
(All amounts in thousands)
<TABLE>
<CAPTION>
INVESTMENT INCOME
<S> <C> <C>
Dividend income allocated from Portfolio.......... $ 1,873
Interest income allocated from Portfolio.......... 683
-------
Total investment income ....................... 2,556
EXPENSES
Expenses allocated from Portfolio................. $ 1,235
Administrative fees............................... 188
Transfer agent fees............................... 282
Bookkeeping fee................................... 27
Trustees' fee..................................... 6
Legal fee......................................... 10
Custodian fee..................................... 1
Audit fee......................................... 8
Registration fee.................................. 30
Reports to shareholders........................... 37
Other............................................. 30
-------
Total Expenses................................. 1,854
-------
Net Investment Income.......................... 702
-------
REALIZED AND UNREALIZED GAIN (LOSS) ALLOCATED FROM PORTFOLIO
Net realized gain (loss) on:
Investments.................................... 1,053
Foreign currency transactions.................. (569) 484
-------
Net change in unrealized appreciation/depreciation
during the period.............................. (3,538)
-------
Net loss..................................... (3,054)
-------
Decrease in net assets resulting from operations.. $ (2,352)
=======
</TABLE>
See notes to financial statements.
17
<PAGE>
Stein Roe International Fund
--------------------------------------------------------------------------------
Statement of Changes in Net Assets
(All amounts in thousands)
<TABLE>
<CAPTION>
YEAR ENDED YEAR ENDED
SEPTEMBER 30, SEPTEMBER 30,
2000 1999
---------- ----------
OPERATIONS
<S> <C> <C>
Net investment income............................. $ 702 $ 1,541
Net realized gain allocated from Portfolio........ 484 11,901
Net change in unrealized appreciation/depreciation
allocated from Portfolio....................... (3,538) 22,538
---------- ----------
Net Increase (Decrease) from Operations........ (2,352) 35,980
---------- ----------
DISTRIBUTIONS TO SHAREHOLDERS
Distributions from net investment income.......... (1,111) (1,137)
Distributions from net realized capital gains..... (1,578) --
---------- ----------
(2,689) (1,137)
---------- ----------
SHARE TRANSACTIONS
Subscriptions to Fund shares...................... 834,874 266,314
Value of distributions reinvested................. 1,987 777
Redemption of Fund shares ........................ (844,482) (301,252)
---------- ----------
Net decrease from Fund share transactions...... (7,621) (34,161)
---------- ----------
Net increase (decrease) in net assets.......... (12,662) 682
TOTAL NET ASSETS
Beginning of period............................... 114,926 114,244
---------- ----------
End of period..................................... $102,264 $114,926
========= =========
Undistributed (Overdistributed) Net Investment Income $ 477 $ (721)
---------- ---------
ANALYSIS OF CHANGES IN SHARES OF BENEFICIAL INTEREST
Sold.............................................. 67,095 23,473
Issued for distributions reinvested............... 155 76
Repurchased....................................... (67,299) (26,503)
---------- ----------
Net decrease in Fund shares.................... (49) (2,954)
---------- ----------
</TABLE>
See notes to financial statements.
18
<PAGE>
Notes to Financial Statements
--------------------------------------------------------------------------------
September 30, 2000
NOTE 1. ACCOUNTING POLICIES ORGANIZATION
Stein Roe International Fund (the Fund) is a series of Liberty-Stein Roe Funds
Investment Trust (the Trust), an open-end management investment company
organized as a Massachusetts business trust. The Fund invests substantially all
of its assets in SR&F International Portfolio (the Portfolio). The Fund may
issue an unlimited number of shares.
The Portfolio is a series of SR&F Base Trust, a Massachusetts common law
trust organized under an Agreement and Declaration of Trust dated August 23,
1993. The Portfolio commenced operations on February 3, 1997. The Portfolio
allocates income, expenses, realized and unrealized gains (losses) to each
investor on a daily basis, based on methods approved by the Internal Revenue
Service. At September 30, 2000, the Fund owned 99.9% of the Portfolio.
The preparation of financial statements in conformity with generally accepted
accounting principles requires management to make estimates and assumptions that
affect the reported amounts of assets and liabilities and disclosure of
contingent assets and liabilities at the date of the financial statements and
the reported amounts of revenue and expenses for the reporting period. Actual
results could differ from those estimates. The following is a summary of
significant accounting policies consistently followed by the Fund and Portfolio
in the preparation of their financial statements.
SECURITY VALUATION AND TRANSACTIONS
Equity securities generally are valued at the last sale price or, in the case of
unlisted or listed securities for which there were no sales during the day, at
current quoted bid price.
Forward currency contracts are valued based on the weighted value of
exchange traded contracts with similar durations.
Short-term obligations with a maturity of 60 days or less are valued at
amortized cost.
The values of all assets and liabilities quoted in foreign currencies
are translated into U.S. dollars at that day's exchange rates.
Portfolio positions for which market quotations are not readily available are
valued at fair value under procedures approved by the Trustees.
Security transactions are accounted for on the date the securities are
purchased, sold or mature.
Cost is determined and gains and losses are based upon the specific
identification method for both financial statement and federal income tax
purposes.
FEDERAL INCOME TAXES
No provision is made for federal income taxes since (a) the Fund elects to be
taxed as a "regulated investment company" and make distributions to its
shareholders to be relieved of all federal income taxes under provisions of
current
19
<PAGE>
Notes to Financial Statements Continued
--------------------------------------------------------------------------------
federal tax law; and (b) the Portfolio is treated as a partnership for federal
income tax purposes and all of its income is allocated to its owners based on
methods approved by the Internal Revenue Service.
DISTRIBUTIONS TO SHAREHOLDERS
Distributions to shareholders are recorded on the ex-date.
The amount and character of income and gains to be to be distributed are
determined in accordance with income tax regulations, which may differ from
generally accepted accounting principles. Reclassifications are made to the
Fund's capital accounts to reflect income and gains available for distribution
(or available capital loss carryforwards) under income tax regulations.
FOREIGN CURRENCY TRANSACTIONS
Net realized and unrealized gains (losses) on foreign currency transactions
include gains (losses) arising from the fluctuations in exchange rates between
trade and settlement dates on securities transactions, gains (losses) arising
from the disposition of foreign currency and currency gains (losses) between the
accrual and payment dates on dividends and interest income and foreign
withholding taxes.
The Portfolio does not distinguish that portion of gains (losses) on
investments which is due to changes in foreign exchange rates from that which is
due to changes in market prices of the investments. Such fluctuations are
included with the net realized and unrealized gains (losses) from investments.
FORWARD CURRENCY CONTRACTS
The Portfolio may enter into forward currency contracts to purchase or sell
foreign currencies at predetermined exchange rates in connection with the
purchases and sales of securities. The Portfolio may also enter into forward
currency contracts to hedge certain other foreign currency denominated assets.
The contracts are used to minimize the exposure to foreign exchange rate
fluctuations during the period between trade and settlement date of the
contracts. All contracts are marked-to-market daily, resulting in unrealized
gains (losses) which become realized at the time the forward currency contract
is closed or matures. Realized and unrealized gains (losses) arising from such
transactions are included in net realized and unrealized gains (losses) on
foreign currency transactions. Forward currency contracts do not eliminate
fluctuations in the prices of the
20
<PAGE>
Notes to Financial Statements Continued
--------------------------------------------------------------------------------
Portfolio's securities. While the maximum potential loss from such contracts is
the aggregate face value in U.S. dollars at the time the contract was opened,
exposure is typically limited to the change in value of the contract (in U.S.
dollars) over the period it remains open. Risks may also arise if counterparties
fail to perform their obligations under the contracts.
OTHER
Interest income is recorded on the accrual basis. Corporate actions and dividend
income are recorded on the ex-date (except for certain foreign securities which
are recorded as soon after ex-date as the Portfolio becomes aware of such), net
of nonrebatable tax withholdings. Where a high level of uncertainty exists,
income on securities is net of all tax withholdings with any rebates recorded
when received.
--------------------------------------------------------------------------------
NOTE 2. FEES AND COMPENSATION PAID TO AFFILIATES
MANAGEMENT FEE
Stein Roe and Farnham Inc. (the Advisor) is the investment Advisor of
the Portfolio and receives a monthly fee equal to 0.85% annually of the
Portfolio's average daily net assets.
ADMINISTRATION FEE
The Advisor also provides accounting and other services for a monthly fee equal
to 0.15% annually of the Fund's average daily net assets.
BOOKKEEPING FEE
The Advisor provides bookkeeping and pricing services to the Portfolio
and Fund for a monthly fee equal to $25,000 annually plus 0.0025% annually of
each of the Portfolio's and Fund's average net assets over $50 million.
TRANSFER AGENT FEE
Liberty Funds Services, Inc. (the Transfer Agent), an affiliate of the Advisor,
provides shareholder services for a monthly fee equal to 0.22% annually of the
Fund's average net assets and receives reimbursement for certain out of pocket
expenses. The Portfolio pays the Transfer Agent a monthly fee equal to $6,000
annually.
OTHER
The Fund pays no compensation to its officers, all of whom are employees of the
Advisor.
21
<PAGE>
Notes to Financial Statements Continued
--------------------------------------------------------------------------------
NOTE 3. PORTFOLIO INFORMATION
During the year ended September 30, 2000, purchases and sales of investments,
other than short-term obligations, were $131,954,592 and $144,569,174
respectively.
Unrealized appreciation (depreciation) for the year ended September 30, 2000
based on cost of investments for federal income tax purposes was: Gross
unrealized
appreciation $17,381,163
Gross unrealized
depreciation (5,397,527)
----------
Net unrealized
appreciation $11,983,636
----------
OTHER
There are certain additional risks involved when investing in foreign securities
that are not inherent with investments in domestic securities. These risks may
involve foreign currency exchange rate fluctuations, adverse political and
economic developments and the possible prevention of foreign currency exchange
or the imposition of other foreign governmental laws or restrictions.
The Portfolio may focus its investments in certain industries, subjecting it
to greater risk than a fund that is more diversified.
--------------------------------------------------------------------------------
NOTE 4. LINE OF CREDIT
The Liberty-Stein Roe Funds Investment Trust and SR&F Base Trust participate in
unsecured line of credit agreements provided by the custodian bank consisting of
two components. The committed line of credit entitles the Trusts to borrow from
the custodian at any time upon notice from the Trust. The uncommitted line of
credit permits the Trust to borrow from the custodian at the custodian's sole
discretion. The aggregate borrowings available to the Trust for the committed
and uncommitted lines of credit are $200 million and $100 million, respectively.
Borrowings may be made to temporarily finance repurchase of Fund shares.
Interest is charged to the trust and, ultimately, the Fund based on its
borrowings. In addition, a commitment fee of 0.10% per annum on the Fund's
unused commitment shall be paid quarterly by the Fund based on the relative
asset size of the Fund to the Trust as a whole. The commitment fee is included
in other expenses on the Statement of Operations. For the year ended September
30, 2000, the Trust and Fund had no borrowings under the agreement.
22
<PAGE>
Notes to Financial Statements Continued
--------------------------------------------------------------------------------
NOTE 5. OTHER RELATED PARTY TRANSACTIONS
During the year ended September 30, 2000, the Portfolio used Alphatrade, a
wholly owned subsidiary of Colonial Management Associates, Inc., as a broker.
Total commissions paid to Alphatrade during the year were $3,972.
23
<PAGE>
Financial Highlights
--------------------------------------------------------------------------------
Stein Roe International Fund
Selected per-share data (for a share outstanding throughout each period), ratios
and supplemental data
<TABLE>
<CAPTION>
YEARS ENDED SEPTEMBER 30,
2000 1999 1998 1997 1996
-------- -------- -------- -------- --------
<S> <C> <C> <C> <C> <C>
NET ASSET VALUE, BEGINNING OF PERIOD.......................... $ 12.07 $ 9.16 $ 11.79 $ 10.96 $ 10.25
-------- -------- -------- -------- --------
INCOME FROM INVESTMENT OPERATIONS
Net investment income (a).................................. 0.07 0.14 0.07 0.06 0.09
Net realized and unrealized gain (loss) on investments
allocated from Portfolio.................................. (1.07) 2.87 (2.01) 0.99 0.74
-------- -------- -------- -------- --------
Total from investment operations......................... (1.00) 3.01 (1.94) 1.05 0.83
-------- -------- -------- -------- --------
DISTRIBUTIONS
Net investment income...................................... (0.11) (0.10) (0.11) (0.08) (0.12)
Net realized capital gains................................. (0.16) -- (0.58) (0.14) --
-------- -------- -------- -------- --------
Total distributions...................................... (0.27) (0.10) (0.69) (0.22) (0.12)
-------- -------- -------- -------- --------
NET ASSET VALUE, END OF PERIOD................................ $ 10.80 $ 12.07 $ 9.16 $ 11.79 $ 10.96
======== ========= ======== ======== =========
Ratio of net expenses to average net assets................... 1.48% 1.57%(b) 1.53% 1.55% 1.51%
Ratio of net investment income to average net assets.......... 0.56% 1.16%(b) 0.62% 0.55% 1.01%
Portfolio turnover rate....................................... N/A N/A N/A 11% (c) 42%(c)
Total return ................................................. (8.58)% 33.02% (16.67)% 9.84% 8.23%
Net assets, end of period (000's)............................. $102,264 $114,926 $114,244 $166,088 $135,545
(a)Per share data was calculated using average shares outstanding during the period.
(b)During the year ended September 30, 1999, the Fund experienced a one-time
reduction in its expenses of twelve basis points as a result of expenses in a
prior period. The Fund's ratios disclosed above reflect the actual rate at
which expenses accrued were incurred throughout the fiscal year without the
reduction.
(c)Prior to commencement of operations of the Portfolio.
</TABLE>
SR&F International Portfolio
<TABLE>
<CAPTION>
PERIOD
ENDED
YEARS ENDED SEPTEMBER 30, SEPTEMBER 30,
2000 1999 1998 1997(A)
-------- -------- -------- --------
<S> <C> <C> <C> <C>
Ratio of net expenses to
average net assets ....... 0.99% 1.03% 1.02% 0.98%(b)
Ratio of net investment income
to average net assets..... 1.06% 1.70% 1.13% 1.58%(b)
Portfolio turnover rate...... 118% 44% 32% 18%
(a) From commencement of operations on February 3, 1997.
(b) Annualized.
</TABLE>
24 and 25
<PAGE>
Report of Independent Accountants
--------------------------------------------------------------------------------
To the Trustees of Liberty-Stein Roe
Funds Investment Trust and SR&F
Base Trust and the Shareholders of
Stein Roe International Fund
In our opinion, the accompanying statements of assets and liabilities, including
the investment portfolio, and the related statements of operations and of
changes in net assets and the financial highlights present fairly, in all
material respects, the financial position of Stein Roe International Fund (the
"Fund")(a series of Liberty-Stein Roe Funds Investment Trust) and Stein Roe
International Portfolio (the "Portfolio")(a series of SR&F Base Trust) at
September 30, 2000, the results of each of their operations for the year then
ended, the changes in each of their net assets and their financial highlights
for the two years then ended, in conformity with accounting principles generally
accepted in the United States of America. These financial statements and
financial highlights (hereafter referred to as "financial statements") are the
responsibility of the Fund's and the Portfolio's management; our responsibility
is to express an opinion on these financial statements based on our audits. We
conducted our audits of these financial statements in accordance with auditing
standards generally accepted in the United States of America, which require that
we plan and perform the audit to obtain reasonable assurance about whether the
financial statements are free of material misstatement. An audit includes
examining, on a test basis, evidence supporting the amounts and disclosures in
the financial statements, assessing the accounting principles used and
significant estimates made by management, and evaluating the overall financial
statement presentation. We believe that our audits, which included confirmation
of securities at September 30, 2000 by correspon dence with the custodian,
provide a reasonable basis for our opinion. The financial highlights of the Fund
and the Portfolio for periods through September 30, 1998 were audited by other
independent accountants, whose report dated November 16, 1998 expressed an
unqualified opinion on those financial highlights.
PricewaterhouseCoopers LLP
Boston, Massachusetts
November 17, 2000
26
<PAGE>
This page intentionally left blank.
27
<PAGE>
This page intentionally left blank.
28
<PAGE>
Liberty-Stein Roe Funds Investment Trust
--------------------------------------------------------------------------------
TRUSTEES
John A. Bacon Jr. Private Investor
William W. Boyd
Chairman and Director, Sterling Plumbing
Group Inc.
Lindsay Cook
Executive Vice President, Liberty Financial
Companies, Inc.
Douglas A. Hacker
Executive Vice President and Chief Financial Officer,
United Airlines
Janet Langford Kelly
Executive Vice President-Corporate Development,
General Counsel and Secretary, Kellogg Co.
Charles R. Nelson
Van Voorhis Professor of Political Economy,
University of Washington
Thomas C. Theobald
Managing Partner, William Blair Capital Partners
OFFICERS
Stephen E. Gibson, President
William D. Andrews, Executive Vice President
Loren A. Hansen, Executive Vice President
Kevin M. Carome, Executive Vice President,
Secretary
Joseph R. Palombo, Executive Vice President
AGENTS AND ADVISORS
Stein Roe & Farnham Incorporated
Investment Advisor
State Street Bank and Trust Company
Custodian
Liberty Funds Services, Inc.
Transfer Agent
Bell, Boyd & Lloyd
Legal Counsel to the Fund and Portfolio
PricewaterhouseCoopers LLP
Independent Accountants
29
<PAGE>
THE STEIN ROE MUTUAL FUNDS
FIXED INCOME FUNDS
Cash Reserves Fund
Municipal Money Market Fund
Intermediate Municipals Fund
Managed Municipals Fund
High-Yield Municipals Fund
Intermediate Bond Fund
Income Fund
High Yield Fund
EQUITY FUNDS
Balanced Fund
Growth & Income Fund
Disciplined Stock Fund
Growth Stock Fund
Young Investor Fund
Midcap Growth Fund
Focus Fund
Capital Opportunities Fund
Small Company Growth Fund
INTERNATIONAL FUNDS
Asia Pacific Fund
Small Cap Tiger Fund
International Fund
Stein Roe Mutual Funds
P.O. Box 8900
Boston, MA 02205-8900
Financial Advisors call:
800-322-0593
Shareholders call: 800-338-2550
www.steinroe.com
Liberty Funds Distributor, Inc.
S12-02/203D-0900(11/00) 00/2087
