<PAGE> 1
TABLE OF CONTENTS
Portfolio Manager's Report to Shareholders
PAGE 2
Report of Independent Accountants
PAGE 7
Schedule of Portfolio Investments
PAGE 8
Statement of Assets and Liabilities
PAGE 10
Statement of Operations
PAGE 11
Statements of Changes in Net Assets
PAGE 12
Notes to Financial Statements
PAGE 13
Financial Highlights
PAGE 19
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-1-
<PAGE> 2
Portfolio Manager's Report to Shareholders Alpine International Real Estate
Equity Fund
--------------------------------------------------------------------------------
Value of a $10,000 Investment [GRAPH]
<TABLE>
<CAPTION>
GPR GENERAL PROPERTY SECURITIES ALPINE INT'L REAL ESTATE EQUITY
INDEX-GLOBAL FUND CL Y SHARES EQUITY FUND
------------------------------- -------------------------------
(DOLLARS)
<S> <C> <C>
10/31/90 10000.00 10000.00
4/30/91 10532.00 11436.00
10/31/91 10564.00 10553.00
4/30/92 9626.00 10223.00
10/31/92 9831.00 10789.00
4/30/93 11807.00 13933.00
10/31/93 13684.00 18910.00
4/30/94 14499.00 17007.00
10/31/94 14818.00 16458.00
4/30/95 14167.00 13966.00
10/31/95 14469.00 14864.00
4/30/96 16194.00 16826.00
10/31/96 17232.00 15787.00
4/30/97 17103.00 14619.00
10/31/97 16148.00 16662.00
4/30/98 15425.00 19591.00
10/31/98 13956.00 16649.00
4/30/99 15271.00 18878.00
10/31/99 14103.00 17013.00
4/30/00 13905.00 15992.00
10/31/00 14449.00 16432.00
</TABLE>
Past performance is not predictive of future results. Investment returns and
principal value of the Alpine International Real Estate Equity Fund will
fluctuate, so that the shares, when redeemed, may be worth more or less than
their original cost.
The GPR General Property Securities Index Global is a market weighted total
return performance index, available on a monthly basis. The purpose of this
index is to cover a broad range of property investment companies. The index
reflects the performance of property companies with a market capitalization of
more than 50 million US dollars. It is constructed on a total return basis with
immediate reinvestment of all dividends. An investor cannot invest directly in
an index.
<TABLE>
<CAPTION>
COMPARATIVE ANNUAL TOTAL RETURNS AS OF 10/31/00
1 YEAR 5 YEARS 10 YEARS+
<S> <C> <C> <C>
-------------------------------------------------------------------------------------
Alpine Class Y (3.42)% 2.02% 5.09%
Alpine Class A (4.75%)* (8.29)% 0.82% 4.46%
Alpine Class B (5.00%)** (9.17)% 0.68% 4.54%
-------------------------------------------------------------------------------------
GPR General Property Securities Index--Global 2.45% (0.03)% 3.75%
</TABLE>
* REPRESENTS MAXIMUM SALES LOAD.
** REPRESENTS MAXIMUM REDEMPTION FEE.
+ Performance of Class A and Class B shares prior to their inceptions on
2/10/95 and 2/8/95 respectively, represents performance of Class Y shares,
which commenced operations on 2/1/89.
--------------------------------------------------------------------------------
-2-
<PAGE> 3
Portfolio Manager's Report to Shareholders Alpine International Real Estate
Equity Fund
--------------------------------------------------------------------------------
Dear Investor:
We are pleased to present the Annual Report to Shareholders of the Alpine
International Real Estate Equity Fund (the "Fund"). For the fiscal year ended
October 31, 2000, your Fund Class Y Shares declined in value by -3.42% due in
large part to foreign currency weakness, particularly the Euro that lost
-20.26%. This compares with a 2.45% return for the GPR General Property
Securities Index -- Global(1) (the "GPR Index"), which has a high weighting in
the U.S. In contrast, during this period, U.S. Dollar assets ranged from 8.0% to
18.0% of the Fund. Of note, only three currencies, the South Korean Won, the
Israeli Shekel, and the Brazilian Real gained against the U.S. Dollar.
Significant gains in the many of the portfolio's investments were masked by
both currency weakness and generally mixed performances among the World's equity
markets as the global Techno-Media-Telecom ("TMT") stock bubble deflated. The
continuing influence of long standing investment themes including demographic
patterns, structural trends, further global integration and shareholder
democracy has created the opportunity for increased Merger and Acquisition
("M&A") activity. Your Fund benefited from eleven (11) such deals during the
fiscal year, as well as positive real estate fundamentals.
The prospect of an economic slowdown in the U.S. should shift investor's
focus first towards Europe and then towards emerging markets in Asia and Latin
America where the business cycle is years behind America. Hence the growth
potential of rents and values should be greatest abroad.
RELATIVE PERFORMANCE
Despite lagging this year, the long-term record of the Fund remains
superior to its benchmark GPR General Property Securities Index -- Global, with
respective five and ten-year annualized returns of 2.02% and 5.09% vs. -0.03%
and 3.75%. Nonetheless, the overall sector has not generated significant returns
since 1993, when the Alpine International Real Estate Equity Fund gained over
51%. The sector has subsequently been plagued by slow economic growth outside of
the U.S., mixed country specific property share gains and losses which often
offset each other, and greater investor interest in other industries or sectors.
While the 1990's could be characterized as a period of American economic and
geopolitical dominance, we believe the pendulum may be shifting back toward a
more global focus, such as we last witnessed in the 1980's. Similarly, the late
1990's emphasis on growth may be superceded by a premium on earnings visibility
and relative stability. These themes were discussed in detail in last February's
Alpine View 2000, which is still available at www.ALPINEFUNDS.com.
ECONOMIC TRENDS
As the primary driver of real estate demand, economic growth is a major
focus in Alpine's investment process. We believe the surprising strength of the
U.S. economy during 2000 should provide 5.0% growth. Despite a rapid slowdown
into early next year, we believe the economy will still average 2.8% in 2001. We
expect the relatively cheap currencies of Europe should minimize the slowdown
from 3.5% this year to perhaps 3.0% in 2001. Asian growth of 3.5% this year and
poten-
---------------
(1) The GPR General Property Securities Index -- Global (the "GPR Index") is a
market weighted total return performance index, available on a monthly
basis. The purpose of this index is to cover a broad range of property
investment companies. The index reflects the performance of property
companies with a market capitalization of more than 50 million US dollars.
It is constructed on a total return basis with immediate reinvestment of all
dividends.
----------------------------------------------------------------------------
-3-
<PAGE> 4
Portfolio Manager's Report to Shareholders Alpine International Real Estate
Equity Fund
--------------------------------------------------------------------------------
<TABLE>
<S> <C>
GEOGRAPHICAL SECTOR DISTRIBUTION*
DISTRIBUTION*
[SECTOR DISTRIBUTION
[GEOGRAPHICAL PIE GRAPH]
DISTRIBUTION PIE
GRAPH]
ASIA 19.5% RETAIL 18%
SOUTH AMERICA 4.7% INDUSTRIAL 3%
NORTH AMERICA 38.8% OTHER 3%
EUROPE 37.0% OFFICE 37%
RESIDENTIAL 19%
LODGING 20%
</TABLE>
tially 2.8% next year, will still be held back by the anemic performance of the
giant Japanese economy, but could grow by 4.0% to 7.0% across the smaller
countries. Currently we would expect 2002 to be somewhat more robust, but this
will depend in part on future levels of global financial liquidity, which should
remain below '98 and '99 levels.
REAL ESTATE MARKETS
Over the past couple of years, property rents and prices, have been
strongest in the major financial and population centers of San Francisco, Boston
and New York in the U.S., as well as Dublin, Stockholm, Paris and Madrid.
London's West End, Barcelona, Milan and Amsterdam have also shown solid growth,
while Frankfurt, Zurich, Singapore and Hong Kong appear to be accelerating from
depressed levels. Several Asian, Latin American and Eastern European markets
remain mixed in flat to declining trends. New supply may impact Dutch, Belgium,
Irish, Polish and Japanese markets but otherwise appears acceptable for most
cities. Barring any significant economic deterioration, rents should continue to
grow in most other cities, albeit at more moderates rates than the past two
years.
REAL ESTATE STOCK PERFORMANCE
For much of the prior two years property stocks appeared far less
attractive than Technology, Media and Telecom (TMT) related equities. However,
during the fiscal years second half, investors focus shifted. They began to
realize that there was a large arbitrage between private market property values
and oversold public real estate stocks. In Europe in particular this resulted in
a number of M&A transactions of which The Alpine International Real Estate
Equity Fund enjoyed a healthy share. Of the eleven companies in which the Fund
held a position prior to successful takeover during the fiscal year, the four
Spanish, two Canadian, one Dutch, one American and one Swedish transactions were
discussed in the semi-annual. In addition, during the fiscal year fourth
quarter, the Fund's long term holding in prime Parisian office owner IMMEUBLES
DE FRANCE was bought by apartment owner Simco in an effort to increase exposure
to
--------------------------------------------------------------------------------
-4-
<PAGE> 5
Portfolio Manager's Report to Shareholders Alpine International Real Estate
Equity Fund
--------------------------------------------------------------------------------
the more favorable office sector. By contrast, in Sweden, the apartment landlord
ANDERS DIOS AB was taken private by a pension fund which valued its high
exposure to the stable university town of Uppsala.
Common characteristics among these eleven M&A deals typically included
either premier or unique assets in growing cities, strong market positions, a
strategic fit with the acquirer, and undervalued share prices prior to the bid.
While only a third of the Fund's portfolio is owned for its potential bid
appeal, these same characteristics are common to most of our investments.
Especially during this phase of slowing global growth and economic uncertainty,
we believe that investing in quality and/or unique assets at attractive
discounts to both current market prices and replacement costs is increasingly
attractive. The highly visible and stable earning power of most commercial
property is a characteristic, which has become even more important to investors
in the wake of the bursting of the TMT growth bubble.
PORTFOLIO ADJUSTMENTS*
Changes in the Fund's portfolio composition reflect a balance among both
short and long term risks and opportunities based on our understanding of
economic prospects, real estate fundamentals, and equity market valuations.
Major changes over the fiscal year reflect reduced Asian exposure from 24.0% to
19.2% of the portfolio and an increase in cash to 3.2% from fully invested.
Notable adjustments include reducing Japan from 10.1% to 5.0% over our concern
that rent growth will remain stagnant as a spike in office supply looms in the
near future. Investments in Singapore were reduced from 5.1% to 1.5%, as
property market profitability appears to be moderating. Philippine exposure was
increased from 1.0% to 2.9% as this year's -51.0% property sector decline and
-22.0% peso devaluation have returned prices to early nineties recession levels.
The potential impeachment of President Estrada may provide a powerful catalyst
to reinvigorate market sentiment and then the economy.
The Fund's Canadian and U.S. holdings are still first and second in size at
19.0% and 14.8%, however Spain was reduced from third to fifth (11.2% to 8.6%)
by M&A activity, bringing France to third at 11.5% and Sweden to fourth at 9.4%,
up from 3.0% last year. Tight office and housing markets in and around Stockholm
influenced this increase along with strong performance of the Fund's investments
there, including two takeovers.
Overall, the portfolio distribution by sector fluctuated somewhat during
the year, but remained consistent at the beginning and end of the year. Retail
shops at 18.0%, Residential at 19.0%, Lodging at 20.0%, and Industrial at 3.0%
were all within a few percent of last years level while Office exposure rose
from 31.0% to 37.0%. On a market by market basis, local distinctions by property
type are important, however on a global basis we find less logic in relying on
such top down criteria, so we focus on broad macro measures and then the
individual company prospects.
TOP TEN HOLDINGS* AS OF 10/31/00
<TABLE>
<C> <S> <C> <C> <C> <C>
1. Alexander's, Inc. 5.89% 6. TK Development 4.41%
2. Bentall Corp. 5.35% 7. Clublink Corp. 4.25%
3. JM AB 5.34% 8. Societe Du Louvre 3.85%
4. Starwood Hotels & Resorts Worldwide, 4.51% 9. Inmobilaria Colonial SA 2.99%
Inc.
5. Kiwi Development Trust 4.44% 10. Unibail 2.74%
</TABLE>
Percentages based on net assets
* Portfolio holdings are subject to change.
--------------------------------------------------------------------------------
-5-
<PAGE> 6
Portfolio Manager's Report to Shareholders Alpine International Real Estate
Equity Fund
--------------------------------------------------------------------------------
OUTLOOK
We anticipate that over the next year the Fund will become more exposed to
the currently depressed markets of Asia and Central Europe, with reduced
positions in North America. This anticipates a slowdown in the U.S. leading to
lower interest rates to stimulate "old economy" businesses and help stabilize
poorly financed "new economy" ventures. Such a "soft landing" for the economy
should prolong the U.S. business cycle with moderate growth for the next few
years. In contrast, the economies of continental Europe are still in a less
mature growth phase of the business cycle while countries in Southeast Asia,
Eastern Europe and Latin American are in or approaching a recovery phase. Thus,
barring major economic disruption, we would anticipate significant liquidity
flows to these countries which in turn should fuel expansion in currency,
capital and property markets over the next few years. This would be compelling
since, property shares in many countries are trading at significant discounts to
underlying property values as well as historic relative valuations.
Thus, we are increasingly optimistic for the medium and long-term prospects
of the Fund's investment universe. Nonetheless, short-term volatility may be
pronounced as the capital markets work through the global backwash from "new
economy" companies around the world having their bubbles burst. However,
distress for some can create opportunities for others and we believe the
market's evolution will continue to bring investors' focus back to the
attributes which property has traditionally provided.
Thank you for your continued support and interest. Please note
www.ALPINEFUNDS.com for special updates as well as ALPINE VIEW 2001.
Sincerely,
SAMUEL A. LIEBER SIGNATURE
Samuel A. Lieber
CEO/Portfolio Manager
---------------
* Portfolio holdings and composition are subject to change.
International investing involves increased risk and volatility.
Past performance is no guarantee for future results. Investment return and net
asset value will fluctuate so that an investor's shares, when redeemed may be
worth more or less than the original cost.
BISYS Fund Services L.P. distributes the Alpine International Real Estate Equity
Fund.
For more complete information on the International Real Estate Equity Fund,
including fees, expenses and sales charges please call 1-877-945-3863 for a free
prospectus. Please read the prospectus carefully before investing or sending
money.
The views expressed in this report reflect those of the investment adviser only
through the end of the period of the report as stated on the cover. The
manager's views are subject to change at any time based on the market and other
conditions.
--------------------------------------------------------------------------------
-6-
<PAGE> 7
Portfolio Manager's Report to Shareholders Alpine International Real Estate
Equity Fund
--------------------------------------------------------------------------------
REPORT OF INDEPENDENT ACCOUNTANTS
To the Shareholders and Trustees
Alpine Equity Trust
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 The Alpine International Real
Estate Equity Fund (the "Fund") at October 31, 2000, the results of its
operations for the year then ended, the changes in its net assets for each of
the two years in the period then ended and the financial highlights for each of
the 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 Fund'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 October
31, 2000 by correspondence with the custodian and brokers, provide a reasonable
basis for our opinion.
PricewaterhouseCoopers LLP
Columbus, Ohio
December 31, 2000
--------------------------------------------------------------------------------
-7-
<PAGE> 8
ALPINE INTERNATIONAL REAL ESTATE EQUITY FUND
SCHEDULE OF PORTFOLIO INVESTMENTS
OCTOBER 31, 2000
<TABLE>
<CAPTION>
SECURITY MARKET
SHARES DESCRIPTION VALUE
---------- ------------------------------ -----------
<S> <C> <C>
COMMON STOCKS & WARRANTS -- (94.0%)
ASIA -- (19.2%)
Hong Kong -- (3.3%)
310,000 Harbour Centre Development.... $ 206,697
150,000 Hong Kong Land Holdings
Ltd. ....................... 277,500
430,000 Kerry Properties Ltd. ........ 493,471
-----------
977,668
-----------
Japan -- (5.0%)
138,000 Diamond City Co. Ltd. ........ 404,446
100,410 Kansai Sekiwa Real Estate Co.
Ltd. ....................... 298,877
80,000 Sankei Building Co. Ltd. ..... 265,967
28,000 Tachihi Enterprise Co.
Ltd. ....................... 533,400
-----------
1,502,690
-----------
New Zealand -- (4.4%)
1,552,145 Kiwi Development Trust (b).... 1,324,358
-----------
Philippines -- (2.9%)
2,000,000 Ayala Land, Inc. ............. 156,408
4,000,000 Filinvest Land, Inc. (b)...... 84,460
5,000,000 Metro Pacific Corp. (b)....... 47,900
13,625,000 SM Development Corp. ......... 186,468
5,000,000 SM Prime Holdings, Inc. ...... 391,020
-----------
866,256
-----------
Singapore -- (1.5%)
625,000 Hersing Corp. Ltd. ........... 126,392
353,000 Marco Polo Developments
Ltd. ....................... 329,783
-----------
456,175
-----------
Thailand -- (2.1%)
105,000 Central Pattana Public Co.
Ltd. ....................... 69,231
178,600 Dusit Thani Public Co. Ltd.
(b)......................... 81,212
400,000 Saha Pathana Inter-Holding
Public Co. Ltd. ............ 427,433
195,000 Sammakorn Public Co. Ltd.
(b)......................... 41,231
-----------
619,107
-----------
5,746,254
-----------
EUROPE -- (36.4%)
Denmark -- (4.4%)
39,865 TK Development................ 1,316,616
-----------
Finland -- (1.3%)
116,400 Sponda Oyj.................... 379,864
-----------
</TABLE>
<TABLE>
<CAPTION>
SECURITY MARKET
SHARES DESCRIPTION VALUE
---------- ------------------------------ -----------
<S> <C> <C>
COMMON STOCKS & WARRANTS, CONTINUED:
EUROPE, CONTINUED:
France -- (11.5%)
15,000 Accor SA...................... $ 606,490
600,000 Euro Disney SCA............... 294,981
6,500 Klepierre..................... 523,421
8,436 Simco Guaranteed Value
Certificates (b)............ 42,189
20,725 Societe Du Louvre............. 1,150,668
6,142 Unibail (b)................... 817,379
-----------
3,435,128
-----------
Norway -- (1.2%)
133,000 Choice Hotels Scandinavia
ASA......................... 371,821
-----------
Spain -- (8.6%)
75,000 Inmobiliaria Colonial SA...... 891,299
50,710 Inmobiliaria Ubris SA (b)..... 202,025
25,000 Metrovacesa SA................ 337,787
50,000 NH Hoteles SA................. 563,684
100,000 Vallehermoso SA (b)........... 565,379
-----------
2,560,174
-----------
Sweden -- (9.4%)
65,000 Castellum AB.................. 690,889
30,000 Drott AB, Class B............. 351,807
70,000 JM AB, Class B................ 1,592,862
13,600 Tornet Fastighets AB.......... 180,524
-----------
2,816,082
-----------
10,879,685
-----------
NORTH & SOUTH AMERICA -- (38.4%)
Argentina -- (2.8%)
289,647 IRSA Inversiones y
Representaciones............ 608,385
10,897 IRSA Inversiones y
Representaciones SA, GDR.... 226,794
-----------
835,179
-----------
Canada -- (19.0%)
136,400 Bentall Corp. ................ 1,598,678
100,700 Boardwalk Equities, Inc.
(b)......................... 781,343
291,100 Clublink Corp. (b)............ 1,267,529
498,100 Dundee Realty Corp. (b)....... 456,603
103,300 H&R Real Estate Investment
Trust....................... 771,080
51,000 Trizec Hahn Corp. ............ 761,813
-----------
5,637,046
-----------
</TABLE>
Continued
-8-
<PAGE> 9
ALPINE INTERNATIONAL REAL ESTATE EQUITY FUND
SCHEDULE OF PORTFOLIO INVESTMENTS (CONTINUED)
OCTOBER 31, 2000
<TABLE>
<CAPTION>
SECURITY MARKET
SHARES DESCRIPTION VALUE
---------- ------------------------------ -----------
<S> <C> <C>
COMMON STOCKS & WARRANTS, CONTINUED:
NORTH & SOUTH AMERICA, CONTINUED:
Mexico -- (1.8%)
70,000 Grupo Posadas SA, Class A
(b)......................... $ 50,470
715,000 Grupo Posadas SA, Class L
(b)......................... 500,564
-----------
551,034
-----------
United States -- (14.8%)
23,000 Alexander's, Inc. (b)......... 1,758,062
23,800 Crown American Realty Trust... 135,363
19,300 Excel Legacy Corp. (b)........ 47,044
23,500 Frontline Capital Group, Inc.
(b)......................... 334,875
174,500 MeriStar Hotels & Resorts,
Inc. (b).................... 414,438
20,000 Standard Pacific Corp. (b).... 375,000
45,400 Starwood Hotels & Resorts
Worldwide, Inc.............. 1,344,974
-----------
4,409,756
-----------
11,433,015
-----------
Total Common Stocks &
Warrants.................... 28,058,954
-----------
</TABLE>
<TABLE>
<CAPTION>
SECURITY MARKET
SHARES DESCRIPTION VALUE
---------- ------------------------------ -----------
<S> <C> <C>
MISCELLANEOUS SECURITIES -- (1.1%)
19,000 $ 324,250
-----------
SHORT-TERM INVESTMENTS -- (3.2%)
United States -- (3.2%)
949,266 SSGA U.S. Government Money
Market Fund................. 949,266
-----------
Total Short-Term
Investments................. 949,266
-----------
Total Investments (Cost
$33,550,451) (a) 98.3% 29,332,470
Other assets in excess of
liabilities 1.7% 521,481
---- -----------
TOTAL NET ASSETS 100.0% $29,853,951
---- ----------
---- ----------
</TABLE>
---------------
Forward Currency Contracts:
<TABLE>
<CAPTION>
DELIVERY CONTRACT CONTRACT VALUE
POSITION DATE PRICE (U.S. DOLLARS) DEPRECIATION
-------- -------- -------- -------------- ------------
<S> <C> <C> <C> <C> <C>
Japanese Yen....................................... Short 01/18/01 107.93 $1,880,464 $(4,050)
-------
Net unrealized depreciation on forward currency
contracts........................................ $(4,050)
-------
</TABLE>
(a) Represents cost for federal income tax and financial reporting purposes and
differs from value by net unrealized depreciation of securities as follows:
<TABLE>
<S> <C>
Unrealized appreciation..................... $ 3,120,653
Unrealized depreciation..................... (7,338,634)
-----------
Net unrealized depreciation................. $(4,217,981)
===========
</TABLE>
(b) Non-income producing securities.
GDR -- Global Depository Receipts
See notes to financial statements.
-9-
<PAGE> 10
ALPINE INTERNATIONAL REAL ESTATE EQUITY FUND
STATEMENT OF ASSETS AND LIABILITIES
OCTOBER 31, 2000
<TABLE>
<S> <C>
ASSETS:
Investments, at value (cost $33,550,451).................. $29,332,470
Foreign currency, at value (cost $868,864)................ 935,237
Unrealized appreciation on forward currency contracts..... 767
Dividends receivable...................................... 5,151
Receivable for investment securities sold................. 3,094,846
Receivable from investment advisor........................ 12,253
Reclaim receivable........................................ 27,372
Prepaid expenses and other assets......................... 11,264
----------
Total assets........................................... 33,419,360
----------
LIABILITIES:
Payable for investment securities purchased............... 3,486,281
Unrealized depreciation on forward currency contracts..... 4,050
Accrued expenses and other liabilities:
Investment advisory fees............................... 25,684
Administration fees.................................... 5,203
Distribution fees...................................... 131
Other.................................................. 44,060
----------
Total liabilities...................................... 3,565,409
----------
NET ASSETS.................................................. $29,853,951
==========
NET ASSETS REPRESENTED BY
Shares of beneficial interest, at par value............... $ 235
Additional paid-in-capital................................ 35,143,972
Undistributed net investment income....................... 4,050
Accumulated net realized losses from foreign exchange
transactions and investments........................... (1,131,966)
Unrealized depreciation from foreign exchange transactions
and investments........................................ (4,162,340)
----------
TOTAL NET ASSETS....................................... $29,853,951
==========
NET ASSET VALUE
Class A Shares
Net assets of $160,731 / 12,706 shares outstanding..... $ 12.65
==========
Offering price (based on sales charge of 4.75%)........ $ 13.28
==========
Class B Shares*
Net assets of $112,865 / 9,284 shares outstanding...... $ 12.16
==========
Class Y Shares
Net assets of $29,580,355 / 2,324,231 shares
outstanding............................................ $ 12.73
==========
</TABLE>
---------------
* Redemption price per share varies based on length of time shares are held
(Note 5)
See notes to financial statements.
-10-
<PAGE> 11
ALPINE INTERNATIONAL REAL ESTATE EQUITY FUND
STATEMENT OF OPERATIONS
YEAR ENDED OCTOBER 31, 2000
<TABLE>
<S> <C> <C>
INVESTMENT INCOME:
Interest.................................................. $ 5,380
Dividends (net of foreign withholding taxes of $71,753
)...................................................... 408,278
--------
Total income........................................... $ 413,658
-----------
EXPENSES:
Investment advisory fees.................................. $313,249
Administration fees....................................... 136,927
Distribution fees -- Class B.............................. 1,023
Distribution fees -- Class C*............................. 242
Shareholder servicing fee -- Class A...................... 586
Shareholder servicing fee -- Class B...................... 341
Shareholder servicing fee -- Class C*..................... 81
Custodian fees............................................ 55,780
Fund accounting fees...................................... 13,443
Interest expense from line of credit...................... 104,499
Legal fees................................................ 49,295
Transfer agent fees....................................... 22,925
Trustees' fees and expenses............................... 10,169
Other..................................................... 109,543
--------
Total expenses before reimbursement......................... 818,103
-----------
Expenses reimbursed by investment advisor................. (64,879)
-----------
Net expenses........................................... 753,224
-----------
Net investment loss......................................... (339,566)
-----------
NET REALIZED/UNREALIZED GAIN/(LOSS) ON INVESTMENTS:
Net realized losses from foreign exchange transactions and
investments............................................ (487,590)
Net change in unrealized depreciation from foreign
exchange transactions and investments.................. (325,192)
-----------
Net realized/unrealized (losses) from investments........... (812,782)
-----------
Change in net assets resulting from operations.............. $(1,152,348)
===========
</TABLE>
---------------
* Class C shares were merged into Class A Shares effective April 30, 2000.
See notes to financial statements.
-11-
<PAGE> 12
ALPINE INTERNATIONAL REAL ESTATE EQUITY FUND
STATEMENTS OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
YEAR ENDED YEAR ENDED
OCTOBER 31, 2000 OCTOBER 31, 1999
---------------- ----------------
<S> <C> <C>
OPERATIONS:
Net investment income/loss................................ $ (339,566) $ 86,770
Net realized gains/(losses) from foreign exchange
transactions and investments........................... (487,590) 1,908,001
Net change in unrealized depreciation from foreign
exchange transactions and investments.................. (325,192) (1,169,584)
----------- ------------
Change in net assets resulting from operations............ (1,152,348) 825,187
----------- ------------
DISTRIBUTIONS TO SHAREHOLDERS:
Distributions to Class A shareholders:
From net investment income............................. (320) --
Tax return of capital.................................. (42) --
Distributions to Class Y shareholders:
From net investment income............................. (105,270) (37,658)
Tax return of capital.................................. (13,900) --
----------- ------------
Change in net assets resulting from distributions to
shareholders........................................... (119,532) (37,658)
----------- ------------
SHARES OF BENEFICIAL INTEREST TRANSACTIONS:
Proceeds from shares sold.............................. 6,276,488 9,270,528
Proceeds from shares issued in connection with exchange
from Class C......................................... 71,192 --
Dividends reinvested................................... 115,753 36,449
Cost of shares redeemed................................ (8,971,346) (11,799,836)
Cost of shares redeemed in connection with exchange to
Class A.............................................. (71,192) --
----------- ------------
Change in net assets from shares of beneficial
interest transactions............................. (2,579,105) (2,492,859)
----------- ------------
Total change in net assets................................ (3,850,985) (1,705,330)
----------- ------------
NET ASSETS:
Beginning of period....................................... 33,704,936 35,410,266
----------- ------------
End of period............................................. $29,853,951 $ 33,704,936
=========== ============
</TABLE>
See notes to financial statements.
-12-
<PAGE> 13
ALPINE INTERNATIONAL REAL ESTATE EQUITY FUND
NOTES TO FINANCIAL STATEMENTS
OCTOBER 31, 2000
1. ORGANIZATION:
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 (the "Trust"), a Massachusetts business
trust organized in 1988.
The Fund offers Class A, Class B and Class Y shares. Class A shares are
sold with a maximum front-end sales charge of 4.75%. Class B shares are
sold without a front-end sales charge, but pay distribution fees. 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. Class B shares purchased after January 1, 1997 will
automatically convert to Class A shares after seven years. Class B shares
purchased prior to January 1, 1997 retain their existing conversion rights.
Class Y shares are sold at net asset value and are not subject to
contingent deferred sales charges or distribution fees. 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 Fund.
Class C shares were merged into Class A shares effective April 30, 2000.
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
("GAAP"), 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 for which the primary market is on a domestic or
foreign exchange and over-the-counter securities admitted to trading on the
National Association of Securities Dealers Automated Quotation National
Market System ("NASDAQ") National List at the last quoted sale price or, if
no sale, at the mean of closing bid and asked price. Over-the-counter
securities not included in the NASDAQ National List for which market
quotations are readily available are valued at a price quoted by one or
more brokers. Securities for which accurate quotations are not available or
market quotations are not readily available, will be valued at fair value
as determined in good faith according to procedures approved by the Board
of Trustees.
B. REPURCHASE AGREEMENTS:
The Fund may invest in repurchase agreements. The custodian holds
securities pledged as collateral for repurchase agreements 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.
Continued
-13-
<PAGE> 14
ALPINE INTERNATIONAL REAL ESTATE EQUITY FUND
NOTES TO FINANCIAL STATEMENTS, CONTINUED
OCTOBER 31, 2000
C. SECURITY TRANSACTIONS AND INVESTMENT INCOME:
Securities transactions are accounted for on the date a security is
purchased or sold (i.e. on 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 where applicable. Dividend income is recorded on the ex-dividend
date or in the case of some foreign securities, on the date thereafter when
the Fund is made aware of the dividend. Foreign income may be subject to
foreign withholding taxes, which are accrued as applicable. Capital gains
realized on some foreign securities are subject to foreign taxes, which are
accrued as applicable.
D. FINANCING AGREEMENT:
The Trust entered into a secured committed revolving line of credit (the
"Committed Line") with State Street Bank and Trust Company (the "Bank").
Under this agreement, the Bank provides a $5,000,000 Committed Line to be
used by the Funds of the Trust. Borrowings of the Funds under this
agreement will incur interest at 0.50% per annum above the Bank's overnight
federal funds rate. A commitment fee of 0.10% per annum will be incurred on
the unused portion of the Committed Line, which will be allocated by
average net assets to all Funds of the Trust. All the assets in the
portfolio are held as collateral for the Committed Line. As of October 31,
2000, the Trust had an unused Committed Line balance of $3,828,006.
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 intends 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 GAAP. These "book/tax" differences
are either considered temporary or permanent in nature (i.e. reclass of
Section 988 gain/loss, reclass to ordinary income, return of capital,
capital loss carryover). 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
Continued
-14-
<PAGE> 15
ALPINE INTERNATIONAL REAL ESTATE EQUITY FUND
NOTES TO FINANCIAL STATEMENTS, CONTINUED
OCTOBER 31, 2000
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 returns of capital.
As of October 31, 2000, the following reclassifications have been made to
increase (decrease) such accounts with offsetting adjustments made to
additional paid-in-capital:
<TABLE>
<CAPTION>
ACCUMULATED
ACCUMULATED NET REALIZED (LOSSES)
NET INVESTMENT FROM INVESTMENT
INCOME TRANSACTIONS
-------------- ---------------------
<S> <C> <C>
International Real Estate Equity............. $600,303 ($482,695)
</TABLE>
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 for each class.
H. FOREIGN EXCHANGE TRANSACTIONS:
The books and records of the Fund are maintained in U.S. dollars. Non-U.S.
denominated amounts are translated into U.S. dollars as follows, with the
resultant exchange gains and losses recorded in the Statement of
Operations:
i) market value of investment securities and other assets and
liabilities at the exchange rate on the valuation date,
ii) purchases and sales of investment securities, income and expenses at
the exchange rate prevailing on the respective date of such
transactions.
Dividends and interest from non-U.S. sources received by the Fund are
generally subject to non-U.S. withholding taxes at rates ranging up to 30%.
Such withholding taxes may be reduced or eliminated under the terms of
applicable U.S. income tax treaties, and the Fund intends to undertake any
procedural steps required to claim the benefits of such treaties.
I. RISK ASSOCIATED WITH FOREIGN SECURITIES AND CURRENCIES:
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
Continued
-15-
<PAGE> 16
ALPINE INTERNATIONAL REAL ESTATE EQUITY FUND
NOTES TO FINANCIAL STATEMENTS, CONTINUED
OCTOBER 31, 2000
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.
J. FORWARD CURRENCY CONTRACTS:
A forward currency contract ("forward") is an agreement between two parties
to buy and sell a currency at a set price on a future date. The market
value of the forward fluctuates with changes in currency exchange rates.
The forward is marked-to-market daily and the change in market value is
recorded by a Fund as unrealized appreciation or depreciation. When the
forward is closed, the Fund records a realized gain or loss equal to the
fluctuation in value during the period the forward was open. The Fund could
be exposed to risk if a counterpart is unable to meet the terms of a
forward or if the value of the currency changes unfavorably.
3. CAPITAL SHARE TRANSACTIONS:
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>
YEAR ENDED YEAR ENDED
OCTOBER 31, 2000 OCTOBER 31, 1999
----------------------- ------------------------
SHARES AMOUNT SHARES AMOUNT
-------- ----------- -------- ------------
<S> <C> <C> <C> <C>
CLASS A
Shares sold......................... 6,244 $ 80,765 10,912 $ 150,123
Shares issued in connection with
exchange from Class C............ 5,084 71,192 -- --
Shares issued in reinvestment of
dividends........................ 28 360 -- --
Shares redeemed..................... (24,417) (308,630) (13,322) (187,553)
-------- ----------- -------- ------------
Net change.......................... (13,061) (156,313) (2,410) (37,430)
-------- ----------- -------- ------------
CLASS B
Shares sold......................... 591 7,310 1,743 24,854
Shares redeemed..................... (7,180) (88,401) (5,438) (72,924)
-------- ----------- -------- ------------
Net change.......................... (6,589) (81,091) (3,695) (48,070)
-------- ----------- -------- ------------
</TABLE>
Continued
-16-
<PAGE> 17
ALPINE INTERNATIONAL REAL ESTATE EQUITY FUND
NOTES TO FINANCIAL STATEMENTS, CONTINUED
OCTOBER 31, 2000
<TABLE>
<CAPTION>
YEAR ENDED YEAR ENDED
OCTOBER 31, 2000 OCTOBER 31, 1999
----------------------- ------------------------
SHARES AMOUNT SHARES AMOUNT
-------- ----------- -------- ------------
<S> <C> <C> <C> <C>
CLASS C
Shares sold......................... -- $ -- 3,916 $ 51,362
Shares redeemed..................... -- -- (10,964) (145,203)
Shares redeemed in connection with
exchange to Class A.............. (5,276) (71,192) -- --
-------- ----------- -------- ------------
Net change.......................... (5,276) (71,192) (7,048) (93,841)
-------- ----------- -------- ------------
CLASS Y
Shares sold......................... 473,251 6,188,413 628,545 9,044,189
Shares issued in reinvestment of
dividends........................ 8,897 115,394 2,728 36,449
Shares redeemed..................... (659,735) (8,574,316) (802,649) (11,394,156)
-------- ----------- -------- ------------
Net change.......................... (177,587) (2,270,509) (171,376) (2,313,518)
-------- ----------- -------- ------------
Total net change.................... (202,513) $(2,579,105) (184,529) $ (2,492,859)
======== =========== ======== ============
</TABLE>
4. SECURITIES TRANSACTIONS:
Cost of purchases and proceeds from sales of investment securities,
excluding securities sold short and short-term investments, were
$23,331,539 and $27,935,040, respectively, for the fiscal year ended
October 31, 2000.
5. DISTRIBUTION PLANS:
BISYS Fund Services LP ("BISYS LP"), a wholly-owned subsidiary of The BISYS
Group Inc. serves as principal underwriter to the Fund. The Fund has
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 shares 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 fiscal year ended October 31, 2000, amounts earned by BISYS LP
pursuant to the Fund's Class A, Class B and Class C shares Distribution
Plans were $586, $1,364 and $323, respectively.
Each of the Distribution Plans may be terminated at any time by vote of the
Independent Trustees or by vote of a majority of the outstanding voting
shares of the respective class.
During the fiscal year ended October 31, 2000, BISYS LP earned no
commission on sale of shares.
Continued
-17-
<PAGE> 18
ALPINE INTERNATIONAL REAL ESTATE EQUITY FUND
NOTES TO FINANCIAL STATEMENTS, CONTINUED
OCTOBER 31, 2000
Class B 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, according to the following chart:
<TABLE>
<CAPTION>
YEAR OF REDEMPTION CDSC
------------------ ----
<S> <C>
First.............................................. 5%
Second............................................. 4
Third and Fourth................................... 3
Fifth.............................................. 2
Sixth.............................................. 1
</TABLE>
6. INVESTMENT ADVISORY AGREEMENT AND OTHER AFFILIATED TRANSACTIONS:
Alpine Management & Research LLC ("Alpine") provide investment advisory
services to the Fund. Pursuant to the investment advisor's agreement with
the Fund, Alpine is entitled to an annual fee of 1.00% based on the Fund's
average daily net assets.
BISYS LP is the Fund's Distributor. BISYS Fund Services Ohio, Inc.
("BISYS") is the Fund's Administrator, Transfer Agent and Dividend
Disbursing Agent. In return for these services, BISYS LP and BISYS will
earn an annual fee amounting to 0.23% of the Fund's average daily net
assets subject to a minimum of $250,000 annually from the Trust. The
shortfall in fees between those calculated based on Fund's average daily
net assets and annual minimum is being reimbursed voluntarily by the
investment adviser.
Officers of the Fund and affiliated Trustees receive no compensation
directly from the Fund.
7. 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.
8. OTHER FEDERAL INCOME TAX INFORMATION (UNAUDITED):
As of October 31, 2000 the Fund has net capital loss carryforward of
$159,741 and $972,223 which will be available through the years 2003 and
2008 respectively, to offset future net capital gains, if any, to the
extent provided by the applicable regulations. To the extent this
carryforward is used to offset future capital gains, it is probable that
the gains so offset will not be distributed to shareholders.
For corporate shareholders, 3.89% of the total ordinary income
distributions paid during the fiscal year ended October 31, 2000, qualify
for the corporate dividend received deduction.
-18-
<PAGE> 19
ALPINE INTERNATIONAL REAL ESTATE EQUITY FUND
FINANCIAL HIGHLIGHTS
(FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD)
<TABLE>
<CAPTION>
YEAR ENDED OCTOBER 31,
------------------------------------------------------
2000(a) 1999(a) 1998 1997(a) 1996(a)
-------- -------- ------ -------- --------
<S> <C> <C> <C> <C> <C>
CLASS A SHARES
NET ASSET VALUE BEGINNING OF YEAR........... $13.15 $12.90 $12.94 $12.28 $11.58
------ ------ ------ ------ ------
INCOME/(LOSS) FROM INVESTMENT OPERATIONS:
Net investment income/(loss).............. (0.17) (0.01) (0.05) (0.06) 0.06
Net realized/unrealized gain/(loss) on
foreign exchange transactions and
investments............................ (0.31) 0.26 0.01 0.72 0.64
------ ------ ------ ------ ------
Total from investment operations.......... (0.48) 0.25 (0.04) 0.66 0.70
------ ------ ------ ------ ------
LESS DISTRIBUTIONS:
Net investment income..................... (0.02) -- -- -- --
Tax return of capital..................... --(b) -- -- -- --
------ ------ ------ ------ ------
Total distributions....................... (0.02) -- -- -- --
------ ------ ------ ------ ------
NET ASSET VALUE END OF YEAR................. $12.65 $13.15 $12.90 $12.94 $12.28
====== ====== ====== ====== ======
TOTAL RETURN (EXCLUDES SALES CHARGES)....... (3.69)% 1.94% (0.31)% 5.40% 6.00%
ANNUALIZED RATIOS/SUPPLEMENTARY DATA:
Net assets at end of period (000)......... $ 161 $ 339 $ 363 $ 336 $ 721
Ratio of expenses to average net assets... 2.67% 2.32% 2.04% 2.10% 1.79%
Ratio of net investment income/(loss) to
average net assets..................... (1.35)% 0.00% (0.26)% (0.47)% 0.40%
Ratio of expenses to average net
assets(c).............................. N/A N/A N/A 2.10% N/A
Ratio of expenses to average net
assets(d).............................. 2.88% 2.32% 2.04% 2.19% 2.97%
Ratio of interest expense to average net
assets................................. 0.33% N/A N/A 0.03% 0.03%
Portfolio turnover(e)..................... 72% 31% 82% 44% 25%
</TABLE>
---------------
(a) Net investment income is based on average shares outstanding during the
period.
(b) Distribution per share was less than $0.005.
(c) During the period, certain fees were indirectly paid. If such fees
indirectly paid had not occurred, the ratios would have been as indicated.
(d) During the period, certain fees were waived or reimbursed. If such fees
waived or reimbursed had not occurred, the ratios would have been as
indicated.
(e) Portfolio turnover is calculated on the basis of the Fund, as a whole,
without distinguishing between the classes of shares issued.
See notes to financial statements.
-19-
<PAGE> 20
ALPINE INTERNATIONAL REAL ESTATE EQUITY FUND
FINANCIAL HIGHLIGHTS
(FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD)
<TABLE>
<CAPTION>
YEAR ENDED OCTOBER 31,
------------------------------------------------------
2000(a) 1999(a) 1998 1997(a) 1996(a)
-------- -------- ------ -------- --------
<S> <C> <C> <C> <C> <C>
CLASS B SHARES
NET ASSET VALUE BEGINNING OF YEAR........... $12.72 $12.57 $12.69 $12.14 $11.53
------ ------ ------ ------ ------
INCOME/(LOSS) FROM INVESTMENT OPERATIONS:
Net investment income/(loss).............. (0.27) (0.11) (0.10) (0.15) (0.13)
Net realized/unrealized gain/(loss) on
foreign exchange transactions and
investments............................ (0.29) 0.26 (0.02) 0.70 0.74
------ ------ ------ ------ ------
Total from investment operations.......... (0.56) 0.15 (0.12) 0.55 0.61
------ ------ ------ ------ ------
NET ASSET VALUE END OF YEAR................. $12.16 $12.72 $12.57 $12.69 $12.14
====== ====== ====== ====== ======
TOTAL RETURN (EXCLUDES REDEMPTION
CHARGES).................................. (4.40)% 1.19% (0.95)% 4.50% 5.30%
ANNUALIZED RATIOS/SUPPLEMENTARY DATA:
Net assets at end of period (000)......... $ 113 $ 202 $ 246 $ 213 $ 134
Ratio of expenses to average net assets... 3.38% 3.08% 2.80% 2.82% 2.56%
Ratio of net investment income/(loss) to
average net assets..................... (2.09)% (0.79)% (0.95)% (1.23)% (1.03)%
Ratio of expenses to average net
assets(b).............................. N/A N/A N/A 2.81% N/A
Ratio of expenses to average net
assets(c).............................. 3.59% 3.08% 2.80% 2.90% 14.45%
Ratio of interest expense to average net
assets................................. 0.33% N/A N/A 0.03% 0.03%
Portfolio turnover(d)..................... 72% 31% 82% 44% 25%
</TABLE>
---------------
(a) Net investment income is based on average shares outstanding during the
period.
(b) During the period, certain fees were indirectly paid. If such fees
indirectly paid had not occurred, the ratios would have been as indicated.
(c) During the period, certain fees were waived or reimbursed. If such fees
waived or reimbursed had not occurred, the ratios would have been as
indicated.
(d) Portfolio turnover is calculated on the basis of the Fund, as a whole,
without distinguishing between the classes of shares issued.
See notes to financial statements.
-20-
<PAGE> 21
ALPINE INTERNATIONAL REAL ESTATE EQUITY FUND
FINANCIAL HIGHLIGHTS
(FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD)
<TABLE>
<CAPTION>
YEAR ENDED OCTOBER 31,
---------------------------------------------------
2000(a) 1999(a) 1998 1997(a) 1996(a)
-------- -------- ------- -------- --------
<S> <C> <C> <C> <C> <C>
CLASS Y SHARES
NET ASSET VALUE BEGINNING OF YEAR........ $ 13.23 $ 12.96 $ 12.97 $ 12.31 $ 11.59
------- ------- ------- ------- -------
INCOME/(LOSS) FROM INVESTMENT OPERATIONS:
Net investment income/(loss)........... (0.14) 0.03 0.01 (0.03) 0.01
Net realized/unrealized gain/(loss) on
foreign exchange transactions and
investments......................... (0.31) 0.25 (0.02) 0.71 0.71
------- ------- ------- ------- -------
Total from investment operations....... (0.45) 0.28 (0.01) 0.68 0.72
------- ------- ------- ------- -------
LESS DISTRIBUTIONS:
Net investment income.................. (0.04) (0.01) -- (0.02) --
Tax return of capital.................. (0.01) -- -- -- --
------- ------- ------- ------- -------
Total distributions.................... (0.05) (0.01) -- (0.02) --
------- ------- ------- ------- -------
NET ASSET VALUE END OF YEAR.............. $ 12.73 $ 13.23 $ 12.96 $ 12.97 $ 12.31
======= ======= ======= ======= =======
TOTAL RETURN............................. (3.42)% 2.19% (0.08)% 5.50% 6.20%
ANNUALIZED RATIOS/SUPPLEMENTARY DATA:
Net assets at end of period (000)...... $29,580 $33,097 $34,646 $35,234 $47,502
Ratio of expenses to average net
assets.............................. 2.40% 2.08% 1.78% 1.82% 1.62%
Ratio of net investment income/(loss)
to average net assets............... (1.08)% 0.24% 0.04% (0.21)% 0.11%
Ratio of expenses to average net
assets(b)........................... N/A N/A N/A 1.82% N/A
Ratio of expenses to average net
assets(c)........................... 2.60% 2.08% 1.78% 1.90% 1.67%
Ratio of interest expense to average
net assets.......................... 0.33% N/A N/A 0.03% 0.03%
Portfolio turnover(d).................. 72% 31% 82% 44% 25%
</TABLE>
---------------
(a) Net investment income is based on average shares outstanding during the
period.
(b) During the period, certain fees were indirectly paid. If such fees
indirectly paid had not occurred, the ratios would have been as indicated.
(c) During the period, certain fees were waived or reimbursed. If such fees
waived or reimbursed had not occurred, the ratios would have been as
indicated.
(d) Portfolio turnover is calculated on the basis of the Fund, as a whole,
without distinguishing between the classes of shares issued.
See notes to financial statements.
-21-
<PAGE> 22
[This Page Intentionally Left Blank]
<PAGE> 23
TRUSTEES
Samuel A. Lieber
Laurence B. Ashkin
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
ADMINISTRATOR AND TRANSFER AGENT
BISYS Fund Services Ohio, 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
DISTRIBUTOR
BISYS Fund Services L.P.
3435 Stelzer Road
Columbus, OH 43219
[ALPINE LOGO] ALPINE
INTERNATIONAL
REAL ESTATE
EQUITY FUND
ALPINE INTERNATIONAL REAL ESTATE EQUITY FUND
122 East 42nd Street, 37th floor
New York, NY 10168
(212)687-5588
-----------------------------------
ANNUAL REPORT
OCTOBER 31, 2000
This material must be preceded or
accompanied by a current prospectus.
(12/00)
