GLENMEDE
THE GLENMEDE FUND, INC.
EMERGING MARKETS PORTFOLIO
ANNUAL REPORT
OCTOBER 31, 2000
<PAGE>
<PAGE>
-----------------------
THE GLENMEDE FUND, INC.
-----------------------
EMERGING MARKETS PORTFOLIO
PORTFOLIO HIGHLIGHTS
OCTOBER 31, 2000
--------------------------------------------------------------------------------
AVERAGE ANNUAL TOTAL RETURN
--------------------------------------------------------------------------------
S&P Global Morgan Stanley Lipper Emerging
Regional Emerging Markets Markets Fund
Emerging Markets Portfolio Composite Free Index Index
-------------------------- ---------- ---------------- ---------------
Year ended 10/31/00 11.10% (9.82)% (8.81)% (4.28)%
Five years ended 10/31/00 0.38% (2.38)% (2.37)% (1.66)%
Inception (12/14/94)
through 10/31/00 0.03% (4.67)% (3.35)% (2.73)%
HYPOTHETICAL ILLUSTRATION OF $10,000 INVESTED IN
EMERGING MARKETS PORTFOLIO VS. MORGAN STANLEY EMERGING MARKETS
FREE INDEX, S&P GLOBAL REGIONAL COMPOSITE AND LIPPER EMERGING MARKETS FUND INDEX
12/14/94 THROUGH 10/31/00
[GRAPHIC OMITTED]
EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC
<TABLE>
<CAPTION>
Index: Morgan
Glenmede Emerging Stanley Emerging Index: S&P Global Index: Lipper Emerging
Markets Portfolio* Markets Free Index* Regional Composite* Markets Fund Index*
<S> <C> <C> <C> <C>
Dec. 1994 10,000 10,000 9,704 10,000
Apr. 1995 10,300 8,624 8,592 8,730
Oct. 1995 9,829 8,700 8,511 8,823
Oct. 1996 9,735 9,265 9,123 9,667
Oct. 1997 9,833 8,479 8,295 9,295
Oct. 1998 6,385 5,852 5,859 6,216
Oct. 1999 9,018 8,473 8,367 8,462
Oct. 2000 10,018 8,197 7,545 8,507
</TABLE>
* Assumes the reinvestment of all dividends and distributions
excluding withholding taxes.
--------------------------------------------------------------------------------
The Morgan Stanley Emerging Markets Free Index is an unmanaged measure of the
performance of the major emerging economies with sizable and active equity
markets in Asia, Latin America, the Middle East, Africa and Europe. Only those
countries open to non-local investors are included. The S&P Global Regional
Composite is an unmanaged measure of the performance of stock markets in
countries with developing economies, especially those meeting World Bank
classifications of low-income and middle-income, but may include high-income
economies where the stock market is likely to be developing for some time.
Markets are included in Latin America, East Asia and Europe/MidEast/Africa. The
Lipper Emerging Markets Fund Index is comprised of the 30 largest funds in the
Lipper Emerging Markets Fund Average. The Average consists of funds that seek
long-term capital appreciation by investing at least 65% of their assets in
emerging market equity securities. An emerging market is defined by a country's
Gross National Product per capita or other economic measures.
----------- 1 -----------
<PAGE>
-----------------------
THE GLENMEDE FUND, INC.
-----------------------
STATEMENT OF ASSETS AND LIABILITIES
OCTOBER 31, 2000
EMERGING
MARKETS
PORTFOLIO
---------
ASSETS:
Investments at value (Cost $61,557)........................ $ 0
Cash ...................................................... 89,108
Foreign cash (Cost of $473,958)............................ 455,196
--------
Total assets............................................. 544,304
--------
LIABILITIES:
Accrued expenses........................................... 14,564
--------
Total liabilities........................................ 14,564
--------
NET ASSETS.................................................... $529,740
========
SHARES OUTSTANDING .......................................... 57,507
========
NET ASSET VALUE PER SHARE..................................... $ 9.21
========
See Notes to Financial Statements.
----------- 2 -----------
<PAGE>
-----------------------
THE GLENMEDE FUND, INC.
-----------------------
STATEMENT OF OPERATIONS
OCTOBER 31, 2000
EMERGING
MARKETS
PORTFOLIO
---------
Investment income:
Dividends (net of foreign withholding taxes)1................. $ 929,111
Interest...................................................... 31,709
Income from securities lending................................ 44,236
-----------
Total investment income..................................... 1,005,056
-----------
Expenses:
Investment advisory fee ...................................... 702,547
Custodian fee................................................. 95,526
Administration fee............................................ 13,495
Professional fees............................................. 12,993
Other expenses................................................ 4,541
-----------
Total expenses.............................................. 829,102
-----------
Net investment income......................................... 175,954
-----------
Realized and unrealized gain/(loss):
Net realized gain/(loss) on:
Securities transactions..................................... 12,543,627
Foreign currency transactions............................... (592,166)
-----------
Net realized gain........................................... 11,951,461
-----------
Net change in unrealized appreciation/depreciation of:
Securities options.......................................... (6,707,719)
Foreign currency translation................................ 438
-----------
Net unrealized appreciation/depreciation.................... (6,707,281)
-----------
Net realized and unrealized gain................................. 5,244,180
-----------
Net increase in net assets resulting from operations............. $ 5,420,134
===========
------------
1 The Emerging Markets Portfolio had foreign dividend withholding taxes of
$61,982.
See Notes to Financial Statements.
----------- 3 -----------
<PAGE>
-----------------------
THE GLENMEDE FUND, INC.
-----------------------
STATEMENT OF CHANGES IN NET ASSETS
FOR THE YEAR ENDED OCTOBER 31, 2000
EMERGING
MARKETS
PORTFOLIO
-----------
Net investment income.......................................... $ 175,954
Net realized gain/(loss) on:
Securities transactions..................................... 12,543,627
Foreign currency transactions............................... (592,166)
Net change in unrealized appreciation/depreciation of:
Securities.................................................. (6,707,719)
Foreign currency translation................................ 438
------------
Net increase in net assets resulting from operations........... 5,420,134
Net decrease in net assets from capital share transactions..... (78,064,692)
------------
Net decrease in net assets..................................... (72,644,558)
NET ASSETS:
Beginning of year.............................................. 73,174,298
------------
End of year ................................................... $ 529,740
============
================================================================================
FOR THE YEAR ENDED OCTOBER 31, 1999
EMERGING
MARKETS
PORTFOLIO
-----------
Expenses in excess of investment income........................ $ (109,589)
Net realized gain/(loss) on:
Securities transactions including options................... 7,297,717
Foreign currency transactions............................... (810,395)
Net change in unrealized appreciation/depreciation of:
Securities.................................................. 16,533,844
Foreign currency translation................................ 51,350
-----------
Net increase in net assets resulting from operations........... 22,962,927
Net decrease in net assets from capital share transactions..... (5,577,232)
-----------
Net increase in net assets..................................... 17,385,695
NET ASSETS:
Beginning of year.............................................. 55,788,603
-----------
End of year.................................................... $73,174,298
===========
See Notes to Financial Statements.
----------- 4 -----------
<PAGE>
-----------------------
THE GLENMEDE FUND, INC.
-----------------------
FINANCIAL HIGHLIGHTS
FOR A SHARE OUTSTANDING THROUGHOUT EACH YEAR
<TABLE>
<CAPTION>
EMERGING MARKETS PORTFOLIO
---------------------------------------------------
YEAR ENDED OCTOBER 31,
---------------------------------------------------
2000 2 1999 1998 1997 1996
------- ------ ------ ------ ------
<S> <C> <C> <C> <C> <C>
Net asset value, beginning of year $8.29 $ 5.87 $ 9.05 $ 9.52 $ 9.73
----- ------ ------ ------ -------
Income from investment operations:
Net investment income (expenses
in excess of income)........... 0.03 (0.01) 0.02 0.03 0.06
Net realized and unrealized
gain/(loss) on investments..... 0.89 2.43 (3.20) 0.09 (0.16)
----- ------ ------ ------ -------
Total from investment
operations..................... 0.92 2.42 (3.18) 0.12 (0.10)
----- ------ ------ ------ -------
Less Distributions from:
Net investment income............. -- -- -- (0.02) (0.08)
Net realized capital gains........ -- -- -- (0.57) (0.03)
----- ------ ------ ------ -------
Total distributions............... -- -- -- (0.59) (0.11)
----- ------ ------ ------ -------
Net asset value, end of year...... $9.21 $ 8.29 $ 5.87 $ 9.05 $ 9.52
===== ====== ====== ====== =======
Total Return 1.................... 11.10% 41.23% (35.14)% 1.01% (0.96)%
===== ====== ====== ====== =======
Ratios to average net
assets/Supplemental data:
Net assets, end of year
(in 000's)..................... $530 $73,174 $55,789 $95,012 $86,385
Ratio of operating expenses to
average net assets............. 1.48% 1.75% 1.85% 1.73% 1.76%
Ratio of net investment income
(expenses in excess of
income) to average net assets.. 0.31% (0.16)% 0.26% 0.29% 0.80%
Portfolio turnover rate........... 136% 134% 113% 94% 44%
<FN>
----------
1 Total return represents aggregate total return for the period indicated.
2 Per share amounts were calculated on the average shares outstanding method.
</FN>
</TABLE>
See Notes to Financial Statements.
----------- 5 -----------
<PAGE>
-----------------------
THE GLENMEDE FUND, INC.
-----------------------
EMERGING MARKETS PORTFOLIO
SCHEDULE OF PORTFOLIO INVESTMENTS
OCTOBER 31, 2000
SHARES VALUE
------ --------
COMMON STOCKS -- 0.0%
BRAZIL -- 0.0%
33,340 Vale do Rio Doce Pfd A Npv 1,2,3 ................. $ 0
--------
SLOVAKIA -- 0.0%
2,000 Chirana Prema AS 1,2,3 ........................... 0
--------
TOTAL COMMON STOCKS
(Cost $61,557).................................. 0
--------
TOTAL INVESTMENTS (Cost $61,557)4....................... 0.0% 0
--------
OTHER ASSETS IN EXCESS OF LIABILITIES................... 100.0 529,740
----- ----------
NET ASSETS.............................................. 100.0% $529,740
===== ========
-----------
1 Non-income producing security.
2 Fair Valued Security.
3 Illiquid Security.
4 Aggregate cost for federal tax purposes.
See Notes to Financial Statements.
----------- 6 -----------
<PAGE>
-----------------------
THE GLENMEDE FUND, INC.
-----------------------
NOTES TO FINANCIAL STATEMENTS
1. SIGNIFICANT ACCOUNTING POLICIES
The Glenmede Fund, Inc. (the"Fund") consists of eleven portfolios: the
Government Cash Portfolio, the Tax-Exempt Cash Portfolio, the Core Fixed Income
Portfolio, the Strategic Equity Portfolio (formerly the Tax Managed Equity
Portfolio), the Small Capitalization ValuePortfolio (formerly the Small
Capitalization Equity Portfolio), the Large Cap Value Portfolio, the
International Portfolio, the Institutional International Portfolio, the Emerging
Markets Portfolio, the Small Capitalization Growth Portfolio and the Core Value
Portfolio (collectively the "Portfolios"). The Emerging Markets Portfolio (the
"Portfolio") represents interests in one portfolio, which is covered in this
report. The Fund was incorporated in the State of Maryland on June 30, 1988 and
is registered with the Securities and Exchange Commission under the Investment
Company Act of 1940 as an open-end management investment company.
The preparation of financial statements in conformity with accounting
principles generally accepted in the United States 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 revenues and expenses
during the reporting period. Actual results could differ from those estimates.
The following is a summary of significant accounting policies consistently
followed by the Portfolio in the preparation of its financial statements.
VALUATION OF SECURITIES: Securities listed on a foreign exchange and
unlisted foreign securities are valued at the last quoted sale price available
before the time when assets are valued. Price information on listed securities
is taken from the exchange where the security is primarily traded.Unlisted
equity securities and listed securities not traded on the valuation date for
which market quotations are readily available are valued at an amount that does
not exceed the asked price and is not less than the bid price. The value of
other assets and securities for which no market quotations are readily available
is determined in good faith at fair value by or under the direction of the Board
of Directors.
In determining fair value, management considers all relevant qualitative and
quantitative information available. These factors are subject to change over
time and are reviewed periodically. The values assigned to fair value
investments are based on available information and do not necessarily represent
amounts that might ultimately be realized, since such amounts depend on future
developments inherent in long-term investments. Furthermore, because of the
inherent uncertainty of valuation, those estimated values may differ
significantly from the values that would have been used had a ready market for
the investments existed, and the differences could be material. On October 31,
2000, the Portfolio held two securities, both of which were valued at $0.
FOREIGN CURRENCY: The books and records of the Portfolio are maintained in
United States (US) dollars. Foreign currencies, investments and other assets and
liabilities are translated into US dollars at the exchange rates prevailing at
the end of the period, and purchases and sales of investment securities, income
and expenses are translated on the respective dates of such transactions.
Unrealized gains and losses that result from changes in foreign currency
exchange rates have been included in the unrealized appreciation/(depreciation)
on foreign currency translations. Net realized foreign currency
----------- 7 -----------
<PAGE>
-----------------------
THE GLENMEDE FUND, INC.
-----------------------
NOTES TO FINANCIAL STATEMENTS -- (CONTINUED)
gains and losses resulting from changes in exchange rates include foreign
currency gains and losses between trade date and settlement date on investment
securities transactions, foreign currency transactions and the difference
between the amounts of interest and dividends recorded on the books of the
Portfolio and the amount actually received. The portion of foreign currency
gains and losses related to fluctuation in exchange rates between the purchase
settlement date and subsequent sale trade date is included in realized gains and
losses on investment securities sold.
SECURITIES TRANSACTIONS AND INVESTMENT INCOME: Securities transactions are
recorded as of the trade date. Realized gains and losses on investments sold are
computed on the basis of identified cost. Dividend income and distributions to
shareholders are recorded on the ex-dividend date. Dividend income for foreign
securities is recorded on the ex-dividend date except that certain dividends
from foreign securities are recorded as soon as the Portfolio is informed of the
ex-dividend date. Interest income is recorded on the accrual basis and includes
amortization of premiums and accretion of discounts when appropriate.
Securities purchased or sold on a when-issued or delayed-delivery basis may
be settled a month or more after the trade date. Interest income is not earned
or accrued until settlement date. The Portfolio segregates assets with a current
value at least equal to the amount of its when-issued purchase commitments.
When-issued purchase commitments involve a risk of loss if the value of the
security to be purchased declines prior to settlement date.
DIVIDENDS AND DISTRIBUTIONS TO SHAREHOLDERS: Dividends from net investment
income, if any, of the Portfolio are declared and paid quarterly. The Portfolio
distributes any net realized capital gains on an annual basis. Additional
distributions of net investment income and capital gains for the Portfolio may
be made at the discretion of the Board of Directors in order to avoid a 4%
nondeductible Federal excise tax. Income distributions and capital gains
distributions are determined in accordance with income tax regulations which may
differ from accounting principles generally accepted in the United States. These
differences are primarily due to differing treatments of income and gains on
various investment securities held by the Portfolio, timing differences and
differing characterizations of distributions made by the Portfolio.
FEDERAL INCOME TAXES: The Portfolio intends to qualify as a regulated
investment company by complying with the requirements of the Internal Revenue
Code applicable to regulated investment companies and by distributing
substantially all of its taxable income to its shareholders. Therefore, no
Federal income tax provision is required. The Portfolio may periodically make
reclassifications among certain of its capital accounts as a result of
differences in the characterization and allocation of certain income and capital
gains determined annually in accordance with federal tax regulations which may
differ from accounting principles generally accepted in the United States.
2. INVESTMENT ADVISORY FEE, ADMINISTRATION FEE AND OTHER RELATED PARTY
TRANSACTIONS
The Emerging Markets Portfolio pays Pictet International Management Limited
(the "Sub-advisor") for its investment advisory services a monthly fee at the
annual rate of 0.50% of the value of its average daily net assets. In addition,
the Portfolio also pays
----------- 8 -----------
<PAGE>
-----------------------
THE GLENMEDE FUND, INC.
-----------------------
NOTES TO FINANCIAL STATEMENTS -- (CONTINUED)
Glenmede Advisers,Inc. (the "Adviser") for its investment advisory services a
monthly fee at the annual rate of 0.75% of the value of its average daily net
assets.
Investment Company Capital Corp. ("ICCC") a subsidiary of Deutsche Bank, AG,
provides administrative, accounting and transfer agent services to the Fund. The
Fund pays ICCC a fee based on the combined aggregate average daily net assets of
the Fund and The Glenmede Portfolios, an investment company with the same
officers, Board and service providers as the Fund (collectively, the
"Companies' ").
This fee is computed daily and paid monthly at the following annual rates:
0.12% of the first $100 million, 0.08% of the next $150 million, 0.04% of the
next $500 million and 0.03% of the amount in excess of $750 million. This fee is
allocated to each portfolio based on its relative net assets.
Expenses for the year ended October 31, 2000 include legal fees paid to
Drinker Biddle & Reath LLP. A partner of the law firm is Secretary of the Fund.
3. PURCHASES AND SALES OF SECURITIES
For the year ended October 31, 2000, cost of purchases and proceeds from
sales of investment securities other than US Government securities and
short-term securities were:
PORTFOLIO PURCHASES SALES
-------------- ----------- ------------
Emerging Markets Portfolio.................. $68,824,356 $146,906,362
On October 31, 2000 aggregate gross unrealized appreciation for all
securities in which there was an excess of value over tax cost and aggregate
gross unrealized depreciation for all securities in which there was an excess of
tax cost over value were as follows:
PORTFOLIO APPRECIATION DEPRECIATION
-------------- -------------- -------------
Emerging Markets Portfolio.................. $-- $61,557
4. COMMON STOCK
The Fund is authorized to issue and has classified 2,500,000,000 shares of
common stock with a $.001 par value. Changes in the capital shares outstanding
were as follows:
YEAR ENDED YEAR ENDED
10/31/00 10/31/99
------------------------ -----------------------
Shares Amount Shares Amount
---------- ------------ ---------- ------------
EMERGING MARKETS PORTFOLIO:
Sold......................... 264,498 $ 2,689,106 1,006,846 $ 8,439,663
Issued as reinvestment of
dividends -- -- -- --
Redeemed.....................(9,030,504) (80,753,798)(1,687,967) (14,016,895)
---------- ------------ ---------- ------------
Net decrease.................(8,766,006) $(78,064,692) (681,121)$ (5,577,232)
========== ============ ========== ============
----------- 9 -----------
<PAGE>
-----------------------
THE GLENMEDE FUND, INC.
-----------------------
NOTES TO FINANCIAL STATEMENTS -- (CONCLUDED)
5. LENDING OF PORTFOLIO SECURITIES
The Portfolio has the ability to lend its securities to brokers, dealers
and other financial organizations. Loans of portfolio securities by the
Portfolio are collateralized by cash and/or government securities that are
maintained in an amount at least equal to the current market value of the loaned
securities. Although risk is mitigated by the collateral, a Portfolio could
experience a delay in recovering its securities and a possible loss of income or
value if the borrower fails to return them. The portfolio generated additional
income by lending their securities to approved brokers.
6. CAPITAL LOSS CARRYFORWARDS
On October 31, 2000, the Emerging Markets Portfolio had available capital
loss carryforwards to be utilized in the current period to offset future net
capital gains through the indicated expiration dates as follows:
EXPIRING EXPIRING
PORTFOLIO IN 2006 IN 2007
--------- -------- --------
Emerging Markets Portfolio....... $14,056,416 --
The Emerging Markets Portfolio utilized capital loss carryforwards in the
amount of $11,263,312 during the year ended October 31, 2000.
7. FOREIGN SECURITIES
The Emerging Markets Portfolio may invest in foreign securities. Investing in
foreign companies and foreign governments involves special risks and
considerations not typically associated with investing in US companies and the
US government. These risks include evaluation of currencies and future adverse
political and economic developments. Moreover, securities of many foreign
companies and foreign governments and their markets may be less liquid and their
prices more volatile than those of securities of comparable US companies and the
US government. This is particularly true with respect to emerging markets in
developing countries.
8. NET ASSETS
On October 31, 2000, net assets consisted of:
EMERGING
MARKETS
PORTFOLIO
------------
Par Value..........................................................$ 58
Paid in Capital in excess of par value............................. 14,666,417
Accumulated net realized loss on investments
sold, and foreign currency transactions......................... (14,056,416)
Net unrealized depreciation on investments and foreign
currency translations........................................... (80,319)
------------
Total Net Assets................................................$ 529,740
============
9. FUND LIQUIDATION
The Portfolio is in the process of liquidating. The Portfolio currently has
one shareholder and the liquidation will be complete when all Taiwanese currency
is repatriated.
----------- 10 -----------
<PAGE>
REPORT OF INDEPENDENT ACCOUNTANTS
To the Shareholder of Emerging Markets Portfolio and
Board of Directors of The Glenmede Fund, Inc.:
In our opinion, the accompanying statement of assets and liabilities including
the schedule of portfolio investments, 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 Emerging Markets Portfolio (one
of eleven portfolios comprising The Glenmede Fund, Inc., hereafter referred to
as the "Portfolio") at October 31, 2000, and the results of its operations, the
changes in its net assets, and the financial highlights for each of the fiscal
periods presented, 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 Portfolio's management; our responsibility is to express
an opinion on these financial statements based on our audit. 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 audits 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 October 31, 2000 by correspondence with the custodian, provide
a reasonable basis for our opinion.
PRICEWATERHOUSECOOPERS LLP
Baltimore, Maryland
December 15, 2000
----------- 11 -----------
<PAGE>
THE GLENMEDE FUND, INC.
OFFICERS AND DIRECTORS
John W. Church, Jr.
Chairman,
Director
H. Franklin Allen, Ph.D.
Director
Willard S. Boothby, Jr.
Director
Frank J. Palamara
Director
G. Thompson Pew, Jr.
Director
Mary Ann B. Wirts
President
Kimberly C. Osborne
Executive Vice President,
Treasurer
Michael P. Malloy
Secretary
INVESTMENT ADVISOR
Glenmede Advisers,Inc.
One Liberty Place
1650 Market Street, Suite 1200
Philadelphia, Pennsylvania 19103
ADMINISTRATOR
Investment Company Capital Corp.
P.O. Box 515
Baltimore, Maryland 21203
CUSTODIAN
The Chase Manhattan Bank, N.A.
3 Chase Metrotech Center
Brooklyn, NY 11245
LEGAL COUNSEL
Drinker Biddle & Reath LLP
One Logan Square
18th & Cherry Streets
Philadelphia, Pennsylvania 19103-6996
INDEPENDENT ACCOUNTANTS
PricewaterhouseCoopers LLP
250 West Pratt Street
Baltimore, Maryland 21201
INVESTMENT SUB-ADVISOR
(for Emerging Markets Portfolio)
Pictet International Management Limited
Tower 42, Level 37
25 Old Broad Street
London, United Kingdom EC2N 1.HQ
DISTRIBUTOR
ICC Distributors, Inc.
Two Portland Square
Portland, Maine 04101
<PAGE>
[THIS PAGE INTENTIONALLY LEFT BLANK]
<PAGE>
<PAGE>
The report is submitted for the general information of the shareholders of
Emerging Markets Portfolio of The Glenmede Fund, Inc. It is not authorized for
distribution to prospective investors unless accompanied or preceded by an
effective prospectus for the Emerging Markets Portfolio, which contains
information concerning the Emerging Markets Portfolio investment policies and
expenses as well as other pertinent information.
