<PAGE> 1
TRUSTEES
Samuel A. Lieber
Laurence B. Ashkin
Foster Bam
H. Guy Leibler
INVESTMENT ADVISER
Alpine Management and Research, LLC
122 East 42nd Street, 37th floor
New York, NY 10168
CUSTODIAN
IFTC
801 Pennsylvania
Kansas City, MO 64105
TRANSFER AGENT
BISYS Fund Services, Inc.
3435 Stelzer Road
Columbus, OH 43219
ACCOUNTANTS
PricewaterhouseCoopers LLP
100 East Broad Street
Columbus, OH 43215
LEGAL COUNSEL
Schulte Roth & Zabel LLP
900 Third Avenue
New York, NY 10022
ADMINISTRATOR AND DISTRIBUTOR
BISYS Fund Services L.P.
3435 Stelzer Road
Columbus, OH 43219
ALPINE LOGO
International
Real Estate
Equity Fund
Alpine International Real Estate Equity Fund
122 East 42nd Street, 37th floor
New York, NY 10168
(212) 687-5588
- --------------------------------------------------------------------------------
SEMI-ANNUAL REPORT
April 30, 1999
(6/99)
<PAGE> 2
TABLE OF CONTENTS
Portfolio Manager's Report to Shareholders
PAGE 3
Schedule of Portfolio Investments
PAGE 6
Statement of Assets and Liabilities
PAGE 8
Statement of Operations
PAGE 9
Statements of Changes in Net Assets
PAGE 10
Notes to Financial Statements
PAGE 11
Financial Highlights
PAGE 16
- --------------------------------------------------------------------------------
-1-
<PAGE> 3
Portfolio Manager's Report to Shareholders Alpine International Real Estate
Equity Fund
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
GPR Y CLASS
--- -------
<S> <C> <C>
2/1/89 10000 10000
9901.26 10010
10302.1 9800
10/31/90 8512.84 9579.66
8268.63 8633.9
10/31/91 8708.65 9874.57
8735.16 9111.86
10/31/92 7958.99 8827.12
8129.01 9315.26
10/31/93 9763.09 12030.2
11314.7 14600.5
10/31/94 11988.7 14684
12252.4 14210
10/31/95 11714.1 12058.7
11963.9 12833.8
10/31/96 13390.5 14528
14248.2 13631.1
10/31/97 14141.6 12622.4
13351.8 14386
10/31/98 12754.7 16914.9
11539.5 14374.9
4/30/99 12627 16299
</TABLE>
Past performance is not predictive of future results. Investment return and
principal value of the Alpine International Real Estate Fund will fluctuate, so
that the shares, when redeemed, may be worth more or less than their original
cost.
The GPR-Global Real Estate Securities Index is a global market capitalization
weighted performance index of Internationally exchange listed property and real
estate securities.
* Prior to 4/30/94, the performance numbers do not reflect dividends.
International investing involves increased risk and volatility.
<TABLE>
<CAPTION>
COMPARATIVE TOTAL RETURNS AS OF 4/30/99
SINCE
6 MONTH 1 YEAR 3 YEAR 5 YEAR INCEPTION+
- -----------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Alpine Class Y 13.39% (3.64)% 3.91% 2.11% 4.89%
Alpine Class A (4.75%)* 7.90% (8.40)% 2.04% 0.96% 4.31%
Alpine Class B (5.00%)* 7.89% (9.22)% 2.01% 0.98% 4.51%
Alpine Class C (1.00%)* 11.82% (5.60)% 2.91% 1.34% 4.50%
- -----------------------------------------------------------------------------------------
GPR Global Real Estate Securities 9.42% (1.00)% (1.94)% 1.04% 2.30%
Index
</TABLE>
* Represents maximum sales load.
+ Performance of Class A, Class B and Class C shares for the period prior to
their inceptions on 2/10/95, 2/8/95 and 2/9/95, respectively, represents
performance for Class Y shares, which commenced operations on 2/1/89.
- --------------------------------------------------------------------------------
-2-
<PAGE> 4
Portfolio Manager's Report to Shareholders Alpine International Real Estate
Equity Fund
- --------------------------------------------------------------------------------
Dear Shareholder:
We are pleased to present the Alpine International Real Estate Fund's
Semi-Annual report to shareholders for the six months ended April 30, 1999. The
market upheaval of last summer has subsided and it created a number of
opportunities from which the fund was able to benefit. Global stock markets'
initial focus after stabilizing was on well-known, large, non-cyclical
companies, or on "new technology" companies that offer the promise of
significant growth. By March, the market's attention began to shift towards more
economically sensitive stocks, including the real estate sector. In this report,
we will discuss the Fund's performance as well as issues and trends which are
affecting both real estate and securities markets. This discussion will also
explain why we believe the future for international real estate securities could
be more positive than recent history.
Q. WHAT WAS THE ALPINE INTERNATIONAL REAL ESTATE FUND'S PERFORMANCE FOR THE SIX
MONTHS ENDED OCTOBER 31, 1998?
A. During the past six months, the fund rebounded by producing a total return
13.39%. This compares favorably with the GPR Global Real Estate Index(1)
which rose by 9.42% during the same period. This period was significant in
that foreign real estate stocks outperformed their American counterparts,
continuing a pattern which began in mid 1998, after three years of steady
under performance. Stock selection and country exposure were both material to
the fund's outperformance, currency became a larger factor than in recent
years. While the fund hedged its yen exposure, management did not foresee the
9.5% erosion of the euro versus the dollar.
Q. WHAT FACTORS CONTRIBUTED TO THE FUND'S OUTPERFORMANCE DURING THIS PERIOD?
A. During the fall of last year, we aggressively invested in a number of
Southeast Asian markets, notably Singapore and Hong Kong. Compared with other
southeast Asian countries, these countries have a more established financial
infrastructure and thus the prospect of an earlier economic stabilization.
Indeed, during the first calendar quarter of 1999, residential real estate
prices in these countries began to recover from 1998's precipitous collapse.
The fund also added to its exposure in Thailand and the Philippines, but has
avoided Malaysia and Indonesia due to extreme political and economic risk
potential.
Significant returns on new positions during the period were lead by DBS
LAND in Singapore (up 70%) and MIDLAND REALTY in Hong Kong (62%) greatly
enhanced the fund's returns. A number of the fund's holdings benefited from
takeover bids or the prospect of such activity. ASTICUS in Belgium was
acquired by Germany's IVG in its bid for enlarging its Pan European base
while Netherlands based EUROPEAN CITY ESTATES and GREYCOAT in the U.K.
announced formal auction programs in response to unsolicited bids. Meanwhile
SOCIETE DU LOUVRE continued its efforts to stonewall unsolicited takeover
activity. Even the U.S. portion
- ---------------
(1) The Global Property Research (GPR) Global Real Estate Securities Index is a
global market capitalization weighted performance index of listed property and
real estate securities.
- --------------------------------------------------------------------------------
-3-
<PAGE> 5
Portfolio Manager's Report to Shareholders Alpine International Real Estate
Equity Fund
- --------------------------------------------------------------------------------
of the portfolio benefited from a management buyout offer for SUNSTONE
HOTELS.
Q. HAVE THERE BEEN ANY SIGNIFICANT CHANGES IN THE FUND'S PORTFOLIO HOLDINGS?
A. During the past six months, the fund has added a number of companies and
reduced or sold several positions. However, the most significant change in
the fund's geographic weighting was a decrease in European exposure from 40%
to 33.7% and an increase in North America from 30% to 36.7%. Much of the
North American increase was due to additional investment in Canada which was
increased from 9.1% to 14.3% as a weak overall stock market, particularly for
economically sensitive stocks has made Canadian real estate stocks very
cheap. The same could be said of the U.S. where property shares were
generally very depressed until rallying at the end of March. The Fund's
exposure in Asia dropped from 23% to 21%, which reflects profit taking by the
Fund during the first calendar quarter of the year.
Q. WHAT IS THE FUND MANAGER'S VIEW OR OUTLOOK FOR INTERNATIONAL REAL ESTATE
SHARES OVER THE NEXT 12 TO 24 MONTHS?
A. From a global perspective, we believe that there will be gradual economic
stabilization and growth during 1999, with further notable expansion of the
Asian and European economies in the year 2000 through 2001. Given the recent
recession in Asia, the prospect for an extended recovery and then expansion
through 2005 is quite possible. While much of Europe is in an economic lull,
we believe the combination of the Euro's convergence, corporate
rationalization, and excess productive capacity should provide significant
scope for an extended, demand driven cyclical expansion. For much of 1999,
the U.S. economy again appears to be the world's engine for economic
activity. The domestic expansion has created the prospect for another record
year of home sales with continued growth in retail sales which are driving
overall business expansion. However, the next decade could be different!
Foreign real estate stock significantly outperformed their counterparts
in the U.S. during the 1980's. However, the U.S. emergence from the Gulf War
recession brought with it significant reduction in interest rates and
enhanced economic productivity gains throughout the decade. In the U.S. this
produced strong relative performance for the property sector and a major wave
of real estate securitization which is now being consummated with a
significant increase in M&A activity. With generally anemic European real
estate stock performance for much of the decade and the significant Asian
collapse during the last couple of years, we believe a base has been set for
this same pattern to unfold abroad. Indeed, this has already begun to take
place in Europe and initial fund raising and corporate expansion has just
started in Southeast Asia as well. We believe that all things being equal,
total returns tend to revert to the mean over time and thus we would expect
the U.S. to slow down during the next decade while European and Asian
economies will power the global engine of growth from which real estate can
grow.
We wish to thank existing shareholders for their support and welcome new
investors to the Alpine family of real estate funds.
SAMUEL A. LIEBER SIGNATURE
Samuel A. Lieber
Portfolio Manager
This report is authorized for distribution only when preceded or accompanied by
a Prospectus.
- --------------------------------------------------------------------------------
-4-
<PAGE> 6
Portfolio Manager's Report to Shareholders Alpine International Real Estate
Equity Fund
- --------------------------------------------------------------------------------
GEOGRAPHICAL DISTRIBUTION
<TABLE>
<CAPTION>
NORTH AMERICA EUROPE ASIA LATIN AMERICA OTHER
- ------------- ------ ---- ------------- -----
<S> <C> <C> <C> <C>
37% 34% 21% 7% 1%
</TABLE>
SECTOR DISTRIBUTION
<TABLE>
<CAPTION>
RETAIL INDUSTRIAL RESIDENTIAL HOTEL OFFICE
- ------ ---------- ----------- ----- ------
<S> <C> <C> <C> <C>
14% 3% 36% 22% 25%
</TABLE>
TOP 10 HOLDINGS*
<TABLE>
<CAPTION>
<C> <S> <C> <C> <C> <C>
1. Tachihi Enterprise Co., Ltd. 2.78% 6. Kansai Sekiwa Real Estate Co., Ltd. 1.57%
2. Midland Realty Holdings, Ltd. 2.57% 7. Ayala Corp. 1.36%
3. HKR International, Ltd. 2.40% 8. SM Development Corp. 1.13%
4. Grupo Posadas SA, Class L 2.24% 9. Saha Pathana Inter-Holding Public Co., Ltd. 0.71%
5. Diamond City Co., Ltd. 1.95% 10. Dusit Thani Public Co., Ltd. 0.48%
</TABLE>
* Portfolio composition subject to change.
- --------------------------------------------------------------------------------
-5-
<PAGE> 7
ALPINE INTERNATIONAL REAL ESTATE EQUITY FUND
SCHEDULE OF PORTFOLIO INVESTMENTS
APRIL 30, 1999
(UNAUDITED)
<TABLE>
<CAPTION>
SECURITY MARKET
SHARES DESCRIPTION VALUE
- ---------- ------------------------------ -----------
<C> <S> <C>
COMMON STOCKS -- (102.0%)
Argentina -- (4.2%)
286,323 IRSA Inversiones y
Representaciones SA......... $ 945,218
21,646 IRSA Inversiones y
Representaciones SA, GDR.... 725,141
-----------
1,670,359
-----------
Canada -- (14.6%)
55,700 Bentall Corp.................. 581,361
100,000 Cad Cambridge Shopping Centres
(b)......................... 648,902
87,000 Canadian Hotel Income
Properties REIT............. 552,596
301,100 Clublink Corp. (b)............ 1,798,776
24,697 Concord Pacific Group, Inc.
(b)......................... 11,871
1,033,000 Dundee Realty Corp. (b)....... 1,007,246
64,400 Gentra, Inc. (b).............. 645,633
1,294,500 Royop Properties Corp. (b).... 568,891
-----------
5,815,276
-----------
Denmark -- (2.4%)
10,156 Thorkild Kristensen A/S....... 940,554
-----------
Finland -- (0.7%)
50,000 Sponda Oyj (b)................ 267,134
-----------
France -- (10.0%)
85,000 Societe des Immeubles De
France...................... 1,560,219
33,078 Societe Du Louvre............. 2,449,652
-----------
4,009,871
-----------
Germany -- (1.7%)
1,900 Apcoa Parking AG.............. 142,718
29,871 Kampa-Haus AG................. 534,393
-----------
677,111
-----------
Hong Kong -- (5.5%)
310,000 Harbour Centre Development.... 199,995
1,290,400 HKR International, Ltd........ 957,369
20,000 Hongkong Land Holdings,
Ltd......................... 30,600
5,000,000 Midland Realty Holdings,
Ltd......................... 1,025,779
-----------
2,213,743
-----------
Japan -- (6.3%)
190,000 Diamond City Co., Ltd......... 779,985
146,410 Kansai Sekiwa Real Estate Co.,
Ltd......................... 626,798
40,000 Tachihi Enterprise Co.,
Ltd......................... 1,109,237
-----------
2,516,020
-----------
</TABLE>
<TABLE>
<CAPTION>
SECURITY MARKET
SHARES DESCRIPTION VALUE
- ---------- ------------------------------ -----------
<C> <S> <C>
COMMON STOCKS, CONTINUED:
Mexico -- (2.4%)
70,000 Grupo Posadas SA, Class A
(b)......................... $ 47,729
1,315,000 Grupo Posadas SA, Class L
(b)......................... 893,770
-----------
941,499
-----------
Netherlands -- (2.0%)
62,400 European City Estates N.V..... 778,993
-----------
New Zealand -- (1.4%)
3,552,145 Kiwi Development Trust........ 357,780
896,498 Trans Tasman Properties,
Ltd......................... 210,694
-----------
568,474
-----------
Norway -- (2.2%)
133,000 Choice Hotels Scandinavia
ASA......................... 256,220
39,200 Steen & Strom Invest ASA...... 614,208
-----------
870,428
-----------
Philippines -- (2.5%)
1,500,000 Ayala Corp.................... 542,423
13,625,000 SM Development Corp........... 451,493
-----------
993,916
-----------
Singapore -- (5.7%)
415,000 DBS Land, Ltd................. 769,473
600,000 Marco Polo Developments,
Ltd......................... 1,034,545
150,000 Singapore Land, Ltd........... 482,729
-----------
2,286,747
-----------
Spain -- (8.2%)
40,000 Bami, Sociedad Anonima
Inmobiliaria De
Construcciones y............ 182,815
Terrenos (b)
50,355.... Inmobilaria Ubris SA (b)...... 751,154
50,000 NH Hoteles, SA................ 588,752
150,000 Prima Inmobiliaria SA (b)..... 1,164,807
169,993 Sotogrande SA................. 600,682
-----------
3,288,210
-----------
Sweden -- (3.0%)
83,900 Castellum AB.................. 768,098
40,000 Fastighets AB Balder.......... 428,022
-----------
1,196,120
-----------
Thailand -- (1.5%)
105,000 Central Pattana Public Co.,
Ltd. (b).................... 45,266
178,600... Dusit Thani Public Co., Ltd.
(b)........................... 192,489
400,000 Saha Pathana Inter-Holding
Public Co., Ltd............. 282,913
195,000 Sammakorn Public Co., Ltd.
(b)......................... 63,049
-----------
583,717
-----------
</TABLE>
Continued
-6-
<PAGE> 8
ALPINE INTERNATIONAL REAL ESTATE EQUITY FUND
SCHEDULE OF PORTFOLIO INVESTMENTS
APRIL 30, 1999
(UNAUDITED)
<TABLE>
<CAPTION>
SECURITY MARKET
SHARES DESCRIPTION VALUE
- ---------- ------------------------------ -----------
<C> <S> <C>
COMMON STOCKS, CONTINUED:
United Kingdom -- (5.0%)
5,000 Chelsfield PLC................ $ 22,662
350,000 Greycoat PLC.................. 1,352,485
1,165,000 Hemingway Properties PLC...... 614,314
-----------
1,989,461
-----------
United States -- (22.7%)
22,900 Alexander's, Inc. (b)......... 1,675,994
1,500 California Coastal
Communities, Inc. (b)....... 9,000
33,000 Crossmann Communities, Inc.
(b)......................... 866,250
27,195 D.R. Horton, Inc.............. 525,203
30,000 Felcor Lodging Trust, Inc..... 718,125
15,000 Lennar Corp. 362,813
67,500 Meditrust Co.................. 839,531
55,000 MeriStar Hotels & Resorts,
Inc. (b).................... 199,375
50,000 Patriot American Hospitality,
Inc. (b).................... 253,125
8,000 Sonic Automotive, Inc. (b).... 118,500
20,400 Starwood Hotels & Resorts
Worldwide, Inc. (b)......... 748,425
74,100 Sunstone Hotel Investors,
Inc......................... 680,794
96,800 The Presley Companies (b)..... 66,550
6,400 Toll Brothers, Inc. (b)....... 136,800
55,000 U.S. Home Corp. (b)........... 1,883,749
-----------
9,084,234
-----------
Total Common Stocks
(Cost $39,957,881).......... 40,691,867
-----------
</TABLE>
<TABLE>
<CAPTION>
SECURITY MARKET
SHARES DESCRIPTION VALUE
- ---------- ------------------------------ -----------
<C> <S> <C>
COMMON STOCKS, CONTINUED:
Total Investments
(Cost $39,957,881)
(a).................. 102.0% $40,691,867
Liabilities in excess of
other assets........ (2.0)% (778,609)
----- -----------
TOTAL NET ASSETS....... 100.0% $39,913,258
===== ===========
</TABLE>
- ---------
Forward Currency Contracts:
<TABLE>
<CAPTION>
DELIVERY CONTRACT CONTRACT VALUE (DEPRECIATION)
POSITION DATE PRICE (U.S. DOLLARS) APPRECIATION
-------- -------- -------- -------------- --------------
<S> <C> <C> <C> <C> <C>
Japanese Yen short 5/28/99 $119.72 2,267,351 $(12,377)
</TABLE>
(a) Cost for federal income tax purposes differs from value by net unrealized
depreciation of securities as follows:
<TABLE>
<S> <C>
Unrealized appreciation................... $ 8,339,712
Unrealized depreciation................... (7,605,726)
-----------
Net unrealized appreciation............... $ 733,986
===========
</TABLE>
(b) Non-income producing securities.
GDR -- Global Depository Receipts
PLC -- Public Limited Company
REIT -- Real Estate Investment Trust
See notes to financial statements.
-7-
<PAGE> 9
ALPINE INTERNATIONAL REAL ESTATE EQUITY FUND
STATEMENT OF ASSETS AND LIABILITIES
APRIL 30, 1999
(UNAUDITED)
<TABLE>
<S> <C>
ASSETS:
Investments, at value (Cost $39,957,881).................. $40,691,867
Receivable for investment securities sold................. 18,841
Receivable for capital shares issued...................... 26,756
Interest and dividends receivable......................... 118,945
Reclaim receivable........................................ 30,635
Prepaid expenses and other assets......................... 40,147
-----------
Total Assets............................................ 40,927,191
-----------
LIABILITIES:
Cash overdrafts........................................... 710,663
Foreign currency overdrafts (Cost, $42,453)............... 42,390
Payable for investment securities purchased............... 121,320
Payable for capital shares redeemed....................... 32,042
Unrealized losses on forward foreign currency contracts... 12,377
Accrued expenses and other liabilities:
Investment advisory fees................................ 30,565
Administration fees..................................... 992
Distribution fees payable............................... 318
Other................................................... 63,266
-----------
Total Liabilities....................................... 1,013,933
-----------
NET ASSETS.................................................. $39,913,258
===========
NET ASSETS REPRESENTED BY
Capital stock, at par value............................... $ 272
Additional paid-in-capital................................ 40,258,836
Undistributed net investment income (loss)................ (177,125)
Accumulated net realized gains (losses) on investment
transactions............................................ (889,665)
Unrealized appreciation (depreciation) from investments... 720,940
-----------
NET ASSETS.............................................. $39,913,258
===========
NET ASSETS
Class Y................................................... $39,268,368
Class A................................................... 326,061
Class B................................................... 244,052
Class C................................................... 74,777
-----------
Total................................................... $39,913,258
===========
OUTSTANDING UNITS OF BENEFICIAL INTEREST (SHARES)
Class Y................................................... 2,674,457
Class A................................................... 22,315
Class B................................................... 17,203
Class C................................................... 5,276
-----------
Total................................................... 2,719,251
===========
NET ASSET VALUE
Class Y -- offering and redemption price per share........ $ 14.68
===========
Class A -- redemption price per share..................... $ 14.61
===========
Class A -- Maximum sales charge........................... 4.75%
-----------
Class A -- Maximum offering price per share
(100%/(100%-Maximum Sales Charge) of net asset value
adjusted to nearest cent)............................... $ 15.34
===========
Class B -- offering price per share*...................... $ 14.19
===========
Class C -- offering price per share*...................... $ 14.17
===========
</TABLE>
* Redemption price per share varies based on length of time shares are held
(Note 3)
See notes to financial statements.
-8-
<PAGE> 10
ALPINE INTERNATIONAL REAL ESTATE EQUITY FUND
STATEMENT OF OPERATIONS
SIX MONTHS ENDED APRIL 30, 1999
(UNAUDITED)
<TABLE>
<S> <C> <C>
INVESTMENT INCOME:
Dividends (net of foreign withholding taxes of $16,679)................ $ 381,498
----------
EXPENSES:
Investment advisory fees.................................. 182,593
Administration fees....................................... 41,997
Distribution fees -- Class B.............................. 898
Distribution fees -- Class C.............................. 471
Shareholder Servicing Fees -- Class A..................... 419
Shareholder Servicing Fees -- Class B..................... 299
Shareholder Servicing Fees -- Class C..................... 157
Custodian fees............................................ 42,160
Legal fees................................................ 36,471
Trustees' fees and expenses............................... 4,778
Printing costs............................................ 21,217
Other..................................................... 42,376
----------
Total Expenses........................................................... 373,836
----------
Net Investment Income.................................................... 7,662
----------
REALIZED/UNREALIZED GAINS (LOSSES) ON INVESTMENTS:
Net realized gains (losses) from investment and foreign currency
transactions........................................................ 1,219,155
Net change in unrealized appreciation (depreciation) from investments
and translation of assets and liabilities in foreign currencies..... 3,388,504
----------
Net realized/unrealized gains (losses) from investments.................. 4,607,659
----------
Change in net assets resulting from operations........................... $4,615,321
==========
</TABLE>
See notes to financial statements.
-9-
<PAGE> 11
ALPINE INTERNATIONAL REAL ESTATE EQUITY FUND
STATEMENTS OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
FOR
SIX MONTHS FOR
ENDED THE YEAR ENDED
APRIL 30, 1999 OCTOBER 31, 1998
---------------- ----------------
(UNAUDITED)
<S> <C> <C>
OPERATIONS:
Net investment income..................................... $ 7,662 $ 10,611
Net realized gains (losses) from investment and foreign
currency transactions.................................. 1,219,155 2,869,579
Net change in unrealized appreciation (depreciation) from
investments and translation of assets and liabilities
in foreign currencies.................................. 3,388,504 (2,703,766)
----------- -----------
Change in net assets resulting from operations......... 4,615,321 176,424
----------- -----------
DISTRIBUTIONS TO SHAREHOLDERS:
From net investment income
Class Y................................................ (37,658) --
----------- -----------
Total change in net assets from distributions to
shareholders......................................... (37,658) --
----------- -----------
SHARES OF BENEFICIAL INTEREST TRANSACTIONS
Net increase (decrease) in net assets resulting from
shares of beneficial interest transactions............. (74,671) (656,758)
----------- -----------
Total change in net assets............................. 4,502,992 (480,334)
----------- -----------
NET ASSETS:
Beginning of period....................................... 35,410,266 35,890,600
----------- -----------
End of period............................................. $39,913,258 $35,410,266
=========== ===========
</TABLE>
See notes to financial statements.
-10-
<PAGE> 12
ALPINE INTERNATIONAL REAL ESTATE EQUITY FUND
NOTES TO FINANCIAL STATEMENTS
(UNAUDITED)
1. ORGANIZATION:
The Alpine International Real Estate Equity Fund, the ("Fund"), is
registered under the Investment Company Act of 1940, as amended (the "1940
Act"), as a diversified, open-end management investment company. The Fund
is a separate series of the Alpine Equity Trust, a Massachusetts business
trust organized in 1988.
Alpine International Real Estate Equity Fund seeks long-term capital
growth. Current income is a secondary objective.
2. SIGNIFICANT ACCOUNTING POLICIES:
The following is a summary of significant accounting policies consistently
followed by the Fund in the preparation of its financial statements. The
policies are in conformity with generally accepted accounting principles,
which require management to make estimates and assumptions that affect
amounts reported herein. Actual results could differ from these estimates.
A. VALUATION OF SECURITIES:
The Fund values securities traded on a national securities exchange or
included on the National Association of Securities Dealers Automated
Quotation National Market System (" NASDAQ") at the last reported sales
price on the exchange where primarily traded. The Fund values securities
traded on an exchange or NASDAQ for which there has been no sale and other
securities traded in the over-the-counter market at the mean between the
last reported bid and asked price. Securities, for which market quotations
are not available, including restricted securities, are valued at fair
value as determined in good faith according to procedures approved by the
Board of Trustees. Short-term investments with remaining maturities of 60
days or less are carried at amortized cost, which approximates market
value.
B. REPURCHASE AGREEMENTS:
The Fund may invest in repurchase agreements. Securities pledged as
collateral for repurchase agreements are held by the custodian on the
Fund's behalf. The Fund monitors the adequacy of the collateral daily and
will require the seller to provide additional collateral in the event the
market value of the securities pledged falls below the carrying value of
the repurchase agreement, including accrued interest. The Fund will only
enter into repurchase agreements with banks and other financial
institutions, which are deemed by the investment advisor to be creditworthy
pursuant to guidelines established by the Board of Trustees. Repurchase
agreements are considered to be loans under the 1940 act.
C. SECURITY TRANSACTIONS AND INVESTMENT INCOME:
Securities transactions are accounted for no later than one business day
after the trade date. Realized gains and losses are computed on the
identified cost basis. Interest income is recorded on the accrual basis and
includes accretion of discounts and amortization of premiums. Dividend
income is recorded on the ex-dividend date or in the case of some foreign
securities, on the date thereafter when the Funds are made aware of the
dividend. Foreign income may be subject to foreign withholding taxes, which
are accrued as
Continued
-11-
<PAGE> 13
ALPINE INTERNATIONAL REAL ESTATE EQUITY FUND
NOTES TO FINANCIAL STATEMENTS, CONTINUED
(UNAUDITED)
applicable. Capital gains realized on some foreign securities are subject
to foreign taxes, which are accrued as applicable.
D. FOREIGN CURRENCY TRANSLATION:
The market value of investment securities, other assets and liabilities of
the Fund denominated in a foreign currency are translated into U.S. dollars
at the current exchange rate. Purchases and sales of securities, income
receipts and expense payments are translated into U.S. dollars at the
exchange rate on the dates of the transactions.
The Fund does not isolate that portion of the results of operations
resulting from changes in foreign exchange rates on investments from the
fluctuations arising from changes in market prices of securities held. Such
fluctuations are included with the net realized and unrealized gains or
losses from investments.
Reported net realized foreign exchange gains or losses arise from sales and
maturities of fund securities, sales of foreign currencies, currency
exchange fluctuations between the trade and settlement dates of securities
transactions, and the difference between the amounts of assets and
liabilities recorded and the U.S. dollar equivalent of the amounts actually
received or paid. Net unrealized foreign exchange gains and losses arise
from changes in the value of assets and liabilities, including investments
in securities, resulting from changes in currency exchange rates.
E. FEDERAL 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
timely, all of its net investment company income and net realized capital
gains to shareholders. Therefore, no federal income tax provision is
required. (Under the applicable foreign tax law, a withholding tax may be
imposed on interest, dividends and capital gains earned on foreign
investments at various rates. Where available, the Fund will file for
claims on foreign taxes withheld.)
F. DIVIDENDS AND DISTRIBUTIONS:
The Fund intend to distribute substantially all of its net investment
income and net realized capital gains, if any, annually in the form of
dividends. Distributions to shareholders are recorded at the close of
business on the ex-dividend date.
The amounts of dividends from net investment income and of distributions
from net realized gains are determined in accordance with federal income
tax regulations, which may differ from generally accepted accounting
principles. These "book/tax" differences are either considered temporary or
permanent in nature. To the extent these differences are permanent in
nature, such amounts are reclassified within the composition of net assets
based on their federal tax-basis treatment; temporary differences do not
require reclassification.
Dividends and distributions to shareholders which exceed net investment
income and net realized capital gains for financial reporting purposes but
not for tax purposes are reported as dividends in excess of net investment
income or distributions in excess of net realized gains. To the extent they
exceed net investment income and net realized gains for tax purposes, they
are reported as distributions of capital.
Continued
-12-
<PAGE> 14
ALPINE INTERNATIONAL REAL ESTATE EQUITY FUND
NOTES TO FINANCIAL STATEMENTS, CONTINUED
(UNAUDITED)
G. CLASS ALLOCATIONS:
Income, expenses (other than class specific expenses) and realized and
unrealized gains and losses are prorated among the classes based on the
relative net assets of each class. Class specific expenses are allocated to
the class to which they relate. Currently, class specific expenses are
limited to expenses incurred under the Distribution Plans.
3. CAPITAL SHARE TRANSACTIONS:
The Fund offers Class A, Class B, Class C and Class Y shares. Class A
shares are sold with a maximum front-end sales charge. Class B shares are
sold subject to a contingent deferred sales charge that is payable upon
redemption and decreases depending on how long the shares have been held. C
Class shares are sold subject to a contingent deferred sales charge payable
on shares redeemed within one year after the month of purchase. Class Y
shares are sold only to certain institutional or individual investors who
do not receive services of financial intermediaries that offer shares of
the Funds.
Class A shares are subject to a 4.75% sales charge at the time of purchase.
Class B shares are shares are subject to a Contingent Deferred Sales Charge
(CDSC) on redemptions of shares made within six years of purchase. The
applicable CDSC is equal to a percentage of the lesser of the net asset
value per share (NAV) at the date of the original purchase or at the date
of redemption. Class C shares are subject to a 1% CDSC on shares redeemed
during the first year after purchase.
Continued
-13-
<PAGE> 15
ALPINE INTERNATIONAL REAL ESTATE EQUITY FUND
NOTES TO FINANCIAL STATEMENTS, CONTINUED
(UNAUDITED)
The Fund has an unlimited number of shares of beneficial interest, with
$0.0001 par value, authorized. Transactions in shares and dollars of the
Fund were as follows:
<TABLE>
<CAPTION>
SIX MONTHS ENDED YEAR ENDED
APRIL 30, 1999 OCTOBER 31, 1998
----------------------- ------------------------
SHARES AMOUNT SHARES AMOUNT
-------- ----------- -------- ------------
<S> <C> <C> <C> <C>
CLASS A
Shares sold...................... 8 $ 109 83,001 $ 1,177,240
Shares redeemed.................. (5,870) (78,477) (80,825) (1,131,032)
-------- ----------- -------- ------------
Net increase (decrease).......... (5,862) (78,368) 2,176 46,208
-------- ----------- -------- ------------
CLASS B
Shares sold...................... 243 3,189 13,606 190,234
Shares redeemed.................. (2,608) (33,819) (10,848) (149,239)
-------- ----------- -------- ------------
Net increase (decrease).......... (2,365) (30,630) 2,758 40,995
-------- ----------- -------- ------------
CLASS C
Shares sold...................... 3,916 51,362 17,119 232,674
Shares redeemed.................. (10,964) (145,202) (13,173) (171,623)
-------- ----------- -------- ------------
Net increase (decrease).......... (7,048) (93,840) 3,946 61,051
-------- ----------- -------- ------------
CLASS Y
Shares sold...................... 277,539 3,821,486 683,226 9,372,138
Shares redeemed.................. (279,004) (3,729,768) (725,879) (10,177,150)
Shares issued in reinvestment of
distributions................. 2,728 36,449 -- --
-------- ----------- -------- ------------
Net increase (decrease).......... 1,263 128,167 (42,653) (805,012)
-------- ----------- -------- ------------
Total Net increase/decrease...... (14,012) $ (74,671) (33,773) $ (656,758)
-------- ----------- -------- ------------
</TABLE>
4. SECURITIES TRANSACTIONS:
Cost of purchases and proceeds from sales of investment securities,
excluding securities sold short and short-term investments, were $7,082,540
and $5,383,310, respectively, for the six months ended April 30, 1999.
5. TRANSACTIONS WITH AFFILIATES:
Investment advisory services are provided to the Fund by Alpine Management
& Research LLC ("Alpine"). Pursuant to each investment advisor's agreement
with the Funds, Alpine is entitled to an annual fee based on the Funds
average daily net assets, in accordance with the following schedule:
<TABLE>
<S> <C>
First $750 million.......................................... 1.00%
Next $250 million........................................... 0.90%
Over $1 billion............................................. 0.80%
</TABLE>
Continued
-14-
<PAGE> 16
ALPINE INTERNATIONAL REAL ESTATE EQUITY FUND
NOTES TO FINANCIAL STATEMENTS, CONTINUED
(UNAUDITED)
BISYS Fund Services L.P. ("BISYS L.P.") is the Fund's Principal Underwriter
and Distributor. BISYS Fund Services Ohio, Inc. is the Fund's Administrator
and BISYS Fund Services, Inc. ("BISYS") is the Fund's Fund Accountant,
Transfer Agent and Dividend Disbursing Agent. In addition, Investors
Fiduciary Trust Company ("IFTC") is the Fund's Custodian. In return for
these serves, BISYS L.P. and BISYS will earn an annual fee amounting to
0.23% of the Funds average daily net assets and IFTC will earn an annual
fee amounting to 0.095% of the Funds average daily net assets.
The Funds have adopted Distribution Plans for each class of shares, except
Class Y Shares, as allowed by Rule 12b-1 of the 1940 Act. Distribution
plans permit the Fund to reimburse its principal underwriter for costs
related to selling shares of the Fund and for various other services. These
costs, which consist primarily of commissions and service fees to
broker-dealers who sell shares of the Fund, are paid by the Fund. Pursuant
to the Distribution plans, each class, except Class Y, currently pays a
service fee equal to 0.25% of the average daily net assets of the class.
Class B and Class C also presently pay distribution fees equal to 0.75% of
the average daily net assets of the class. Distribution Plan fees are
calculated daily and paid monthly.
During the six months ended April 30, 1999, amounts paid to brokers by
BISYS L.P. pursuant to the Fund's Class A, Class B and Class C Distribution
plans were $363, $1,120 and $513, respectively.
Officers of the Fund and affiliated Trustees receive no compensation
directly from the Funds.
6. CONCENTRATION OF CREDIT RISK:
The Fund invests a substantial portion of its assets in the equity
securities of issuers engaged in the real estate industry, including real
estate investment trusts (REITs). As a result, the Fund may be more
affected by economic developments in the real estate industry than would a
general equity fund.
Investments in securities of foreign issuers carry certain risks not
ordinarily associated with investments in securities of domestic issuers.
Such risks include future political and economic developments and the
possible imposition of exchange controls or other foreign governmental laws
and restrictions. In addition, with respect to certain countries, there is
a possibility of expropriation of assets, confiscatory taxation, political
or social instability or diplomatic developments which could adversely
affect investments in those countries.
Certain countries may also impose substantial restrictions on investments
in their capital markets by foreign entities, including restrictions on
investments in issuers or industries deemed sensitive to relevant national
interests. These factors may limit the investment opportunities available
to the Fund or result in a lack of liquidity and high price volatility with
respect to securities of issuers from developing countries.
-15-
<PAGE> 17
ALPINE INTERNATIONAL REAL ESTATE EQUITY FUND
FINANCIAL HIGHLIGHTS
(FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD)
<TABLE>
<CAPTION>
YEAR ENDED OCTOBER 31, PERIOD ENDED
SIX MONTHS ENDED --------------------------------------- SEPTEMBER 30,
APRIL 30, 1999(a) 1998 1997(a) 1996(a) 1996(a)(b) 1995(a)(c)
----------------- ------ ------- ------- ---------- -------------
(UNAUDITED)
<S> <C> <C> <C> <C> <C> <C>
CLASS A SHARES
NET ASSETS VALUE BEGINNING OF
PERIOD........................ $12.90 $12.94 $12.28 $11.58 $12.12 $11.46
------ ------ ------ ------ ------ ------
INCOME (LOSS) FROM INVESTMENT
OPERATIONS:
Net investment income
(loss)...................... (0.01) (0.05) (0.06) 0.06 (0.01) 0.07
Net realized and unrealized
gain (loss) from investments
and foreign currencies...... 1.72 0.01 0.72 0.64 (0.53) 0.59
------ ------ ------ ------ ------ ------
Total from investment
operations.................. 1.71 (0.04) 0.66 0.70 (0.54) 0.66
------ ------ ------ ------ ------ ------
NET ASSET VALUE END OF PERIOD... $14.61 $12.90 $12.94 $12.28 $11.58 $12.12
====== ====== ====== ====== ====== ======
TOTAL RETURN (EXCLUDES SALES
CHARGES)...................... 13.26%(g) (0.31)% 5.40% 6.00% (4.50)%(g) 5.80%(g)
ANNUALIZED RATIOS/ SUPPLEMENTARY
DATA:
Net Assets at end of period
(000)....................... $ 326 $ 363 $ 336 $ 721 $ 74 $ 66
Ratio of expenses to average
net assets.................. 2.28%(f) 2.04% 2.10% 1.79% 1.73(f) 1.01%(f)
Ratio of interest expense to
average net assets.......... N/A N/A 0.03% 0.03% 0.03(f) 0.01%(f)
Ratio of net investment income
(loss) to average net
assets...................... (0.25)%(f) (0.26)% (0.47)% 0.40% (1.26)%(f) 0.98%(f)
Ratio of expenses to average
net assets(d)............... N/A 2.04% 2.19% 2.97% 46.90%(f) 21.59%(f)
Ratio of expenses to average
net assets(e)............... N/A N/A 2.10% N/A N/A N/A
Portfolio Turnover(h)......... 14% 82% 44% 25% 1% 28%
</TABLE>
- ---------
<TABLE>
<S> <C>
(a) Net investment income is based on average shares outstanding during the period.
(b) The Fund changed its year end from September 30 to October 31, effective October 31, 1995.
(c) For the period from February 10, 1995 (commencement of operations) to September 30, 1995.
(d) During the period, certain fees were waived or reimbursed. If such fees waived or reimbursed had not
incurred, the ratios would have been as indicated.
(e) During the period, certain fees were indirectly paid. If such fees indirectly paid had not occurred, the
ratios would have been as indicated.
(f) Annualized.
(g) Not Annualized.
(h) Portfolio turnover is calculated on the basis of the Fund, as a whole, without distinguishing between
the classes of shares issued.
</TABLE>
See notes to financial statements.
-16-
<PAGE> 18
ALPINE INTERNATIONAL REAL ESTATE EQUITY FUND
FINANCIAL HIGHLIGHTS
(FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD)
<TABLE>
<CAPTION>
YEAR ENDED OCTOBER 31, PERIOD ENDED
SIX MONTHS ENDED --------------------------------------- SEPTEMBER 30,
APRIL 30, 1999(a) 1998 1997(a) 1996(a) 1996(a)(b) 1995(a)(c)
----------------- ------ ------- ------- ---------- -------------
(UNAUDITED)
<S> <C> <C> <C> <C> <C> <C>
CLASS B SHARES
NET ASSETS VALUE BEGINNING OF
PERIOD........................ $12.57 $12.69 $12.14 $11.53 $12.08 $11.44
------ ------ ------ ------ ------ ------
INCOME (LOSS) FROM INVESTMENT
OPERATIONS:
Net investment income
(loss)...................... (0.11) (0.10) (0.15) (0.13) (0.02) 0.08
Net realized and unrealized
gain (loss) from investments
and foreign currencies...... 1.73 (0.02) 0.70 0.74 (0.53) 0.56
------ ------ ------ ------ ------ ------
Total from investment
operations.................. 1.62 (0.12) 0.55 0.61 (0.55) 0.64
------ ------ ------ ------ ------ ------
NET ASSET VALUE END OF PERIOD... $14.19 $12.57 $12.69 $12.14 $11.53 $12.08
====== ====== ====== ====== ====== ======
TOTAL RETURN (EXCLUDES
REDEMPTION CHARGES)......... 12.89%(g) (0.95)% 4.50% 5.30% (4.60)%(g) 5.60%(g)
ANNUALIZED RATIOS/ SUPPLEMENTARY
DATA:
Net Assets at end of period
(000)....................... $ 244 $ 246 $ 213 $ 134 $ 100 $ 128
Ratio of expenses to average
net assets.................. 3.03%(f) 2.80% 2.82% 2.56% 2.44%(f) 2.42%(f)
Ratio of interest expense to
average net assets.......... N/A N/A 0.03% 0.03% 0.03%(f) 0.03%(f)
Ratio of net investment income
(loss) to average net
assets...................... (0.99)%(f) (0.95)% (1.23)% (1.03)% (1.98)%(f) (1.38)%(f)
Ratio of expenses to average
net assets(d)............... N/A 2.80% 2.90% 14.45% 31.39%(f) 82.74%(f)
Ratio of expenses to average
net
assets(e)................... N/A N/A 2.81% N/A N/A N/A
Portfolio Turnover(h)......... 14% 82% 44% 25% 1% 28%
</TABLE>
- ---------
<TABLE>
<S> <C>
(a) Net investment income is based on average shares outstanding during the period.
(b) The Fund changed its year end from September 30 to October 31, effective October 31, 1995.
(c) For the period from February 8, 1995 (commencement of operations) to September 30, 1995.
(d) During the period, certain fees were waived or reimbursed. If such fees waived or reimbursed had not
incurred, the ratios would have been as indicated.
(e) During the period, certain fees were indirectly paid. If such fees indirectly paid had not occurred, the
ratios would have been as indicated.
(f) Annualized.
(g) Not Annualized.
(h) Portfolio turnover is calculated on the basis of the Fund, as a whole, without distinguishing between
the classes of shares issued.
</TABLE>
See notes to financial statements.
-17-
<PAGE> 19
ALPINE INTERNATIONAL REAL ESTATE EQUITY FUND
FINANCIAL HIGHLIGHTS
(FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD)
<TABLE>
<CAPTION>
YEAR ENDED OCTOBER 31, PERIOD ENDED
SIX MONTHS ENDED --------------------------------------- SEPTEMBER 30,
APRIL 30, 1999(a) 1998 1997(a) 1996(a) 1995(a)(b) 1995(a)(c)
----------------- ------ ------- ------- ---------- -------------
(UNAUDITED)
<S> <C> <C> <C> <C> <C> <C>
CLASS C SHARES
NET ASSETS VALUE BEGINNING OF
PERIOD........................ $12.56 $12.70 $12.14 $11.53 $12.08 $11.43
------ ------ ------ ------ ------ ------
INCOME (LOSS) FROM INVESTMENT
OPERATIONS:
Net investment income
(loss)...................... (0.44) (0.08) (0.14) (0.13) (0.02) 0.06
Net realized and unrealized
gain (loss) from investments
and foreign currencies...... 2.05 (0.06) 0.70 0.74 (0.53) 0.59
------ ------ ------ ------ ------ ------
Total from investment
operations.................. 1.61 (0.14) 0.56 0.61 (0.55) 0.65
------ ------ ------ ------ ------ ------
NET ASSET VALUE END OF PERIOD... $14.17 $12.56 $12.70 $12.14 $11.53 $12.08
====== ====== ====== ====== ====== ======
TOTAL RETURN (EXCLUDES
REDEMPTION CHARGES)........... 12.82%(g) (1.10)% 4.60% 5.30% (4.60)%(g) 5.70%(g)
ANNUALIZED RATIOS/ SUPPLEMENTARY
DATA:
Net Assets at end of period
(000)....................... $ 75 $ 155 $ 106 $ 8 $ 4 $ 7
Ratio of expenses to average
net assets.................. 2.99%(f) 2.83% 2.83% 2.54% 2.37%(f) 1.54%(f)
Ratio of interest expense to
average net assets.......... N/A N/A 0.03% 0.03% 0.02%(f) 0.01%(f)
Ratio of net investment income
(loss) to average net
assets...................... (1.20)%(f) (0.82)% (1.15)% (1.06)% (1.94)%(f) 0.86%(f)
Ratio of expenses to average
net assets(d)............... N/A 2.83% 2.91% 118.64% 570.26%(f) 269.60%(f)
Ratio of expenses to average
net assets(e)............... N/A N/A 2.83% N/A N/A N/A
Portfolio Turnover(h)......... 14% 82% 44% 25% 1% 28%
</TABLE>
- ---------
<TABLE>
<S> <C>
(a) Net investment income is based on average shares outstanding during the period.
(b) The Fund changed its year end from September 30 to October 31, effective October 31, 1995.
(c) For the period from February 9, 1995 (commencement of operations) to September 30, 1995.
(d) During the period, certain fees were waived or reimbursed. If such fees waived or reimbursed had not
incurred, the ratios would have been as indicated.
(e) During the period, certain fees were indirectly paid. If such fees indirectly paid had not occurred, the
ratios would have been as indicated.
(f) Annualized.
(g) Not Annualized.
(h) Portfolio turnover is calculated on the basis of the Fund, as a whole, without distinguishing between
the classes of shares issued.
</TABLE>
See notes to financial statements.
-18-
<PAGE> 20
ALPINE INTERNATIONAL REAL ESTATE EQUITY FUND
FINANCIAL HIGHLIGHTS
(FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD)
<TABLE>
<CAPTION>
YEAR ENDED OCTOBER 31, YEAR ENDED
SIX MONTHS ENDED ---------------------------------------- SEPTEMBER 30,
APRIL 30, 1999 1998 1997(a) 1996(a) 1995(a)(b) 1995(a)
---------------- ------- ------- ------- ---------- -------------
(UNAUDITED)
<S> <C> <C> <C> <C> <C> <C>
CLASS Y SHARES
NET ASSETS VALUE BEGINNING OF
PERIOD........................ $ 12.96 $ 12.97 $ 12.31 $ 11.59 $ 12.13 $ 13.81
------- ------- ------- ------- ------- -------
INCOME (LOSS) FROM INVESTMENT
OPERATIONS:
Net investment income
(loss)...................... -- 0.01 (0.03) 0.01 (0.01) 0.11
Net realized and unrealized
gain (loss) from investments
and foreign currencies...... 1.73 (0.02) 0.71 0.71 (0.53) (1.17)
------- ------- ------- ------- ------- -------
Total from investment
operations.................. 1.73 (0.01) 0.68 0.72 (0.54) (1.06)
------- ------- ------- ------- ------- -------
LESS DISTRIBUTIONS
From net investment income.... (0.01) -- (0.02) -- -- (0.10)
From net realized gains....... -- -- -- -- -- (0.52)
------- ------- ------- ------- ------- -------
Total distributions........... (0.01) -- (0.02) -- -- (0.62)
------- ------- ------- ------- ------- -------
NET ASSET VALUE END OF PERIOD... $ 14.68 $ 12.96 $ 12.97 $ 12.31 $ 11.59 $ 12.13
======= ======= ======= ======= ======= =======
TOTAL RETURN.................... 13.39%(f) (0.08)% 5.50% 6.20% (4.50)% (7.70)%
ANNUALIZED RATIOS/ SUPPLEMENTARY
DATA:
Net Assets at end of period
(000)....................... $39,268 $34,646 $35,234 $47,502 $61,418 $67,645
Ratio of expenses to average
net assets.................. 2.03%(e) 1.78% 1.82% 1.62% 1.62% 1.54%
Ratio of interest expense to
average net assets.......... N/A N/A 0.03% 0.03% 0.03% 0.05%
Ratio of net investment income
(loss) to average net
assets...................... 0.06%(e) 0.04% (0.21)% 0.11% (1.14)% 0.92%
Ratio of expenses to average
net assets(c)............... N/A 1.78% 1.90% 1.67% N/A N/A
Ratio of expenses to average
net assets(d)............... N/A N/A 1.82% N/A N/A N/A
Portfolio Turnover(g)......... 14% 82% 44% 25% 1% 28%
</TABLE>
- ---------------
<TABLE>
<S> <C>
(a) Net investment income is based on average shares outstanding during the period.
(b) The Fund changed its year end from September 30 to October 31, effective October 31, 1995.
(c) During the period, certain fees were waived or reimbursed. If such fees waived or reimbursed had not
incurred, the ratios would have been as indicated.
(d) During the period, certain fees were indirectly paid. If such fees indirectly paid had not occurred, the
ratios would have been as indicated.
(e) Annualized.
(f) Not Annualized.
(g) Portfolio turnover is calculated on the basis of the Fund, as a whole, without distinguishing between
the classes of shares issued.
</TABLE>
See notes to financial statements.
-19-
