[LOGO]
U.S. Equity Fund
Short/Intermediate Fixed
Income Fund
SEMI-ANNUAL REPORT
April 30, 1995
<PAGE>
THE 59 WALL STREET U.S. EQUITY FUND
PORTFOLIO OF INVESTMENTS
April 30, 1995
(unaudited)
Shares Value
- -------- -----------
COMMON STOCKS (98.5%)
AEROSPACE/DEFENSE (2.0%)
9,200 Boeing Co.............................................. $ 506,000
-----------
AUTO & TRUCK
MANUFACTURERS (1.8%)
10,000 General Motors Corp ................................... 451,250
-----------
BEVERAGES (1.1%)
6,500 PepsiCo, Inc .......................................... 270,563
-----------
CHEMICALS (1.8%)
7,500 FMC Corp.* ............................................ 460,313
-----------
COAL, GAS & PIPELINES (1.5%)
11,500 Enron Corp ............................................ 391,000
-----------
COMPUTER RELATED (3.4%)
6,000 International Business
Machines Corp ....................................... 568,500
10,000 Stratus Computer, Inc.* ............................... 297,500
-----------
866,000
-----------
COMPUTER SOFTWARE (8.2%)
14,000 Bay Networks, Inc.* ................................... 508,375
20,000 Cadence Design
Systems, Inc.* ...................................... 645,000
8,000 Computer Associates
International, Inc .................................. 515,000
9,000 Reuters Holdings, PLC ................................. 409,500
-----------
2,077,875
-----------
COSMETICS & TOILETRIES (2.1%)
8,500 Avon Products, Inc .................................... 537,625
-----------
DIVERSIFIED (2.2%)
12,000 Tenneco, Inc .......................................... 550,500
-----------
ELECTRICAL EQUIPMENT (3.9%)
10,500 Duracell International, Inc. .......................... 462,000
9,500 General Electric Co ................................... 532,000
-----------
994,000
-----------
ELECTRONICS (1.8%)
7,000 Hewlett-Packard Co .................................... 462,875
-----------
EXPLORATION/DRILLING (1.8%)
16,500 Noble Affiliates, Inc ................................. 445,500
-----------
FINANCIAL SERVICES (2.1%)
6,000 Federal National Mortgage
Assoc ............................................... 529,500
-----------
INSURANCE (2.1%)
5,000 American International
Group, Inc .......................................... 533,750
-----------
MACHINERY/EQUIPMENT (5.1%)
13,500 Ingersoll-Rand Co ..................................... 482,625
10,000 Stewart & Stevenson
Services, Inc ....................................... 372,500
8,000 Sundstrand Corp ....................................... 444,000
-----------
1,299,125
-----------
MEDIA (3.8%)
7,000 CBS, Inc .............................................. 448,875
26,000 Tele-Communications, Inc. -
Class A* ............................................ 498,875
-----------
947,750
-----------
MEDICAL SUPPLIES & SERVICES (6.5%)
12,000 Abbott Laboratories ................................... 472,500
9,000 Medtronic, Inc ........................................ 669,375
11,500 St. Jude Medical, Inc ................................. 495,938
-----------
1,637,813
-----------
METALS & MINING (4.1%)
22,000 Allegheny Ludlum Corp ................................. 497,750
12,000 Aluminum Company of
America ............................................. 538,500
-----------
1,036,250
-----------
OIL-INTERNATIONAL (5.2%)
9,100 Chevron Corp .......................................... 431,112
4,800 Mobil Corp ............................................ 455,400
3,400 Royal Dutch Petroleum Co .............................. 421,600
-----------
1,308,112
-----------
PAPER/FOREST PRODUCTS (4.2%)
10,000 Consolidated Papers, Inc .............................. 490,000
6,500 Scott Paper Co ........................................ 579,312
-----------
1,069,312
-----------
PHARMACEUTICALS (4.7%)
3,500 Bristol-Myers Squibb Co ............................... 227,937
6,500 Lilly (Eli) & Co ...................................... 485,875
11,000 Merck & Co., Inc ...................................... 471,625
-----------
1,185,437
-----------
<PAGE>
THE 59 WALL STREET U.S. EQUITY FUND
PORTFOLIO OF INVESTMENTS
April 30, 1995 (continued)
(unaudited)
Shares Value
- -------- -----------
PHOTO & OPTICAL (2.2%)
9,500 Eastman Kodak Co ...................................... $ 546,250
-----------
PRINTING/PUBLISHING (1.5%)
11,000 Donnelley (R. R.) & Sons Co ........................... 374,000
-----------
RAILROADS (1.5%)
7,000 Conrail, Inc .......................................... 382,375
-----------
REAL ESTATE (3.3%)
9,000 Developers Diversified
Realty Corp ......................................... 247,500
20,000 Security Capital Pacific
Trust ............................................... 350,000
16,000 United Dominion Realty
Trust ............................................... 224,000
-----------
821,500
-----------
RECREATION (3.4%)
8,500 Disney (Walt) Co ...................................... 470,687
16,000 Mattel, Inc ........................................... 380,000
-----------
850,687
-----------
RESTAURANT/LODGING (1.7%)
12,000 Marriott International, Inc. .......................... 432,000
-----------
RETAIL-DISCOUNT (1.2%)
13,000 Wal-Mart Stores, Inc .................................. 308,750
-----------
RETAIL-GENERAL (1.4%)
25,000 Price/Costco, Inc.* ................................... 364,063
-----------
RETAIL-SPECIALTY (1.6%)
13,000 Gap, Inc .............................................. 414,375
-----------
TELECOMMUNICATIONS (1.2%)
8,000 Northern Telecom, Ltd ................................. 291,000
-----------
TOBACCO (3.5%)
7,700 Philip Morris Co., Inc ................................ 521,675
13,000 UST, Inc .............................................. 365,625
-----------
887,300
-----------
UTILITIES-ELECTRIC (2.2%)
13,000 CINergy Corp .......................................... 326,625
8,000 General Public Utilities Corp. ........................ 228,000
-----------
554,625
-----------
UTILITIES-GAS (1.0%)
13,000 MCN Corp .............................................. 250,250
-----------
UTILITIES-TELEPHONE (3.4%)
8,000 AT&T Corp ............................................. 406,000
7,500 BellSouth Corp ........................................ 459,375
-----------
865,375
-----------
TOTAL COMMON STOCKS
(identified cost $21,381,359) ......................... $24,903,100
-----------
Contracts
- ---------
PUT OPTIONS (0.1%)
5,000 Standard & Poor's 500 Index
Dec. 380, expires 12/16/95
(identified cost $54,525) ............................. $ 38,125
-----------
TOTAL INVESTMENTS (identified cost $21,435,884) (a) ... 98.6% $24,941,225
CASH AND OTHER ASSETS IN EXCESS OF LIABILITIES ........ 1.4 348,559
----- -----------
NET ASSETS ............................................ 100.0% $25,289,784
===== ===========
- --------------
* non-income producing security.
(a) The aggregate cost for federal income tax purposes is $21,435,884, the
aggregate gross unrealized appreciation is $3,806,166 and the aggregate
gross unrealized depreciation is $300,825 resulting in net unrealized
appreciation of $3,505,341.
See Notes to Financial Statements.
<PAGE>
THE 59 WALL STREET U.S. EQUITY FUND
STATEMENT OF ASSETS AND LIABILITIES
April 30, 1995
(unaudited)
ASSETS:
Investments in securities, at value
(identified cost $21,435,884) (Note 1) ............... $ 24,941,225
Cash ................................................... 39,384
Receivables for:
Investments sold ..................................... 711,705
Capital stock sold ................................... 390,569
Dividends ............................................ 40,344
Deferred organization expenses (Note 1) ................ 9,993
------------
Total Assets .................................... 26,133,220
------------
LIABILITIES:
Payables for:
Investments purchased ................................ 675,642
Fund shares repurchased .............................. 143,232
Expense reimbursement fee (Note 2) ................... 21,001
Administrative fee (Note 2) .......................... 3,053
Tax withholding ........................................ 508
------------
Total Liabilities ................................ 843,436
------------
NET ASSETS ................................................... $ 25,289,784
============
Net Assets Consist of:
Paid-in capital ........................................ $ 22,125,645
Accumulated undistributed net investment income ........ 77,559
Accumulated net realized loss on investments ........... (418,761)
Net unrealized appreciation on investments ............. 3,505,341
------------
Net Assets ................................................... $ 25,289,784
============
Net asset value and offering price per share
($25,289,784 / 793,414 shares) ............................ $ 31.87
============
See Notes to Financial Statements.
<PAGE>
THE 59 WALL STREET U.S. EQUITY FUND
STATEMENT OF OPERATIONS
For the six months ended April 30, 1995
(unaudited)
INVESTMENT INCOME:
Income:
Dividends (net of foreign withholding tax of $956) ....... $ 241,129
-----------
Expenses:
Expense reimbursement fee (Note 2) ....................... 116,431
Administrative fee (Note 2) .............................. 16,950
Amortization of organization expenses (Note 1) ........... 2,215
-----------
Total Expenses ........................................ 135,596
-----------
Net Investment Income ................................. 105,533
-----------
NET REALIZED AND UNREALIZED GAIN (LOSS) (Notes 1 and 3):
Net realized loss on investments ......................... (507,371)
Net change in unrealized appreciation on investments ..... 2,514,153
-----------
Net Realized and Unrealized Gain ...................... 2,006,782
-----------
Net Increase in Net Assets Resulting from Operations ..... $ 2,112,315
===========
See Notes to Financial Statements.
<PAGE>
THE 59 WALL STREET U. S. EQUITY FUND
STATEMENT OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
For the six
months ended For the
April 30, 1995 year ended
(unaudited) October 31, 1994
-------------- ----------------
<S> <C> <C>
INCREASE (DECREASE) IN NET ASSETS:
Operations:
Net investment income .......................................................... $ 105,533 $ 174,825
Net realized (loss) gain on investments ........................................ (507,371) 473,695
Net change in unrealized appreciation on investments ........................... 2,514,153 217,087
------------ ------------
Net increase in net assets resulting from operations ....................... 2,112,315 865,607
------------ ------------
Dividends and distributions declared from (Note 1):
Net investment income .......................................................... (96,649) (106,883)
Net realized gains ............................................................. (377,049) (43,075)
------------ ------------
Total dividends and distributions declared ................................. (473,698) (149,958)
------------ ------------
Capital stock transactions (Note 4):
Net proceeds from sales of capital stock ....................................... 4,422,120 11,015,245
Net asset value of capital stock issued to shareholders in
reinvestment of dividends and distributions .................................. 327,651 85,809
Net cost of capital stock redeemed ............................................. (3,223,010) (683,815)
------------ ------------
Net increase in net assets resulting from capital stock
transactions ............................................................. 1,526,761 10,417,239
------------ ------------
Total increase in net assets ............................................. 3,165,378 11,132,888
NET ASSETS:
Beginning of period .............................................................. 22,124,406 10,991,518
------------ ------------
End of period (including undistributed net investment income
of $77,559 and $68,675, respectively) .......................................... $ 25,289,784 $ 22,124,406
============ ============
</TABLE>
See Notes to Financial Statements.
<PAGE>
THE 59 WALL STREET U. S. EQUITY FUND
FINANCIAL HIGHLIGHTS
Selected per share data and ratios for a share outstanding
throughout each period
<TABLE>
<CAPTION>
For the period
For the six July 23, 1992
months ended For the years ended October 31, (commencement of
April 30, 1995 ------------------------------- operations) to
(unaudited) 1994 1993 October 31, 1992
---------- ------- ------- ----------------
<S> <C> <C> <C> <C>
Net asset value, beginning of period ....................... $ 29.84 $ 28.80 $ 25.77 $ 25.00
Income from investment operations:
Net investment income ................................... 0.14 0.26 0.28 0.07
Net realized and unrealized gain ........................ 2.53 1.05 3.04 0.76
Less dividends and distributions (Note 1):
Dividends to shareholders from net
investment income ...................................... (0.13) (0.17) (0.29) (0.06)
Distributions to shareholders from net
realized gains .......................................... (0.51) (0.10) -- --
------- ------- ------- -------
Net asset value, end of period ........................... $ 31.87 $ 29.84 $ 28.80 $ 25.77
======= ======= ======= =======
Total investment return .................................... 9.21%* 4.61% 12.95% 3.32%*
Ratios/Supplemental Data:
Net assets, end of period (000's omitted) ............... $25,290 $22,124 $10,992 $ 2,378
Ratio of expenses to average net assets ................. 1.20%** 1.20% 1.20% 1.20%**
Ratio of net investment income to average
net assets ............................................ 0.93%** 1.06% 1.07% 1.20%**
Portfolio turnover rate ................................. 38% 61% 52% 2%
<FN>
- ------------------
* Not annualized.
** Annualized.
</FN>
</TABLE>
See Notes to Financial Statements.
<PAGE>
THE 59 WALL STREET SHORT/INTERMEDIATE FIXED INCOME FUND
PORTFOLIO OF INVESTMENTS
April 30, 1995
(unaudited)
<TABLE>
<CAPTION>
Principal
Amount Value
- ------------- -----------
<S> <C> <C>
U.S. TREASURY BONDS (3.6%)
$ 300,000 11.625%, 11/15/04 (identified cost $391,599).................................. $ 392,625
-----------
U.S. TREASURY NOTES (71.9%)
$ 2,250,000 5.50%, 2/28/99................................................................ $ 2,152,958
1,460,000 5.875%, 3/31/99............................................................... 1,413,003
475,000 6.25%, 2/15/03 ............................................................... 452,290
1,070,000 6.625%, 3/31/97............................................................... 1,070,663
2,600,000 7.25%, 11/15/96............................................................... 2,628,444
-----------
Total U.S. Treasury Notes (identified cost $7,599,314) ................... $ 7,717,358
-----------
CORPORATE NOTES AND BONDS (10.4%)
AUTOMOTIVE (2.9%)
$ 300,000 Ford Motor Credit Co., 9.125%, 12/15/95 ...................................... $ 304,182
-----------
BANKING (3.4%)
180,000 Bank of New York Co., Inc., 6.50%, 12/1/03.................................... 163,933
200,000 Citicorp, 8.00%, 2/1/03 ...................................................... 201,596
-----------
365,529
-----------
UTILITIES (4.1%)
450,000 Georgia Power Co., 4.75%, 3/1/96 ............................................. 442,746
-----------
Total Corporate Notes and Bonds (identified cost $1,158,210) ............... $ 1,112,457
-----------
FEDERAL HOME LOAN MORTGAGE CORPORATION (9.4%)
$ 379,687 6.00%, 1/1/01................................................................. $ 363,785
352,339 7.00%, 12/1/07................................................................ 344,739
200,000 7.25%, 1/15/17................................................................ 198,750
100,000 7.90%, 4/27/05................................................................ 99,937
-----------
Total Federal Home Loan Mortgage Corporation
(identified cost $990,970) ............................................... $ 1,007,211
-----------
$ 265,000 FEDERAL NATIONAL MORTGAGE ASSOCIATION (2.4%)
Real Estate Mortgage Investment Conduit
6.50%, 4/25/10 (identified cost $268,064)..................................... $ 262,846
-----------
TOTAL INVESTMENTS (identified cost $10,408,157)(a) ................................ 97.7% $10,492,497
CASH AND OTHER ASSETS IN EXCESS OF LIABILITIES .................................... 2.3 243,813
----- -----------
NET ASSETS ........................................................................ 100.0% $10,736,310
===== ===========
<FN>
- ------------------
(a) The aggregate cost for federal income tax purposes is $10,408,157, the
aggregate gross unrealized appreciation is $136,320 and the aggregate gross
unrealized depreciation is $51,980, resulting in net unrealized
appreciation of $84,340.
</FN>
</TABLE>
See Notes to Financial Statements.
<PAGE>
THE 59 WALL STREET SHORT/INTERMEDIATE FIXED INCOME FUND
STATEMENT OF ASSETS AND LIABILITIES
April 30, 1995
(unaudited)
ASSETS:
Investments in securities, at value
(identified cost $10,408,157) (Note 1) ............... $ 10,492,497
Cash ................................................... 55,384
Receivables for:
Interest ............................................... 172,782
Capital stock sold ..................................... 57,044
Deferred organization expenses (Note 1) ................ 9,927
------------
Total Assets ...................................... 10,787,634
------------
LIABILITIES:
Payables for:
Capital stock redeemed .............................. 44,246
Expense reimbursement fee (Note 2) .................. 5,764
Administrative fee (Note 2) ......................... 1,314
------------
Total Liabilities .................................. 51,324
------------
NET ASSETS ................................................... $ 10,736,310
============
Net Assets Consist of:
Paid-in capital ........................................ $ 11,317,081
Accumulated undistributed net investment income ........ 570
Accumulated net realized loss .......................... (665,681)
Net unrealized appreciation ............................ 84,340
------------
Net Assets ................................................... $ 10,736,310
============
Net asset value and offering price per share
($10,736,310 / 1,128,163 shares) .......................... $ 9.52
======
See Notes to Financial Statements.
<PAGE>
THE 59 WALL STREET SHORT/INTERMEDIATE FIXED INCOME FUND
STATEMENT OF OPERATIONS
For the six months ended April 30, 1995
(unaudited)
INVESTMENT INCOME:
Income:
Interest ................................................. $ 330,063
---------
Expenses:
Expense reimbursement fee (Note 2) ....................... 32,929
Administrative fee (Note 2) .............................. 7,528
Amortization of organization expenses (Note 1) ........... 2,201
---------
Total Expenses ....................................... 42,658
---------
Net Investment Income ................................ 287,405
---------
NET REALIZED AND UNREALIZED GAIN (LOSS) (Notes 1 and 3):
Net realized loss on investments ......................... (479,127)
Net change in unrealized depreciation on investments ..... 626,517
---------
Net Realized and Unrealized Gain ..................... 147,390
---------
Net Increase in Net Assets Resulting from Operations ..... $ 434,795
=========
See Notes to Financial Statements.
<PAGE>
THE 59 WALL STREET SHORT/INTERMEDIATE FIXED INCOME FUND
STATEMENT OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
For the six
months ended For the
April 30, 1995 year ended
(unaudited) October 31, 1994
-------------- ----------------
<S> <C> <C>
INCREASE (DECREASE) IN NET ASSETS:
Operations:
Net investment income ........................................................ $ 287,405 $ 531,286
Net realized loss on investments ............................................. (479,127) (175,242)
Net change in unrealized appreciation/depreciation
on investments ............................................................. 626,517 (592,970)
------------ ------------
Net increase (decrease) in net assets resulting
from operations ....................................................... 434,795 (236,926)
------------ ------------
Dividends and distributions declared (Note 1):
From net investment income .................................................. (286,835) (531,546)
From net realized gains ..................................................... -- (49,267)
In excess of net realized gains ............................................. -- (11,312)
------------ ------------
Total dividends and distributions declared .............................. (286,835) (592,125)
------------ ------------
Capital stock transactions (Note 4):
Net proceeds from sales of capital stock ..................................... 3,004,048 6,700,547
Net asset value of capital stock issued to shareholders in
reinvestment of dividends and distributions ................................ 129,375 285,615
Net cost of capital stock redeemed ........................................... (2,872,599) (5,558,868)
------------ ------------
Net increase in net assets resulting from capital
stock transactions ..................................................... 260,824 1,427,294
------------ ------------
Total increase in net assets ........................................... 408,784 598,243
NET ASSETS:
Beginning of period ............................................................ 10,327,526 9,729,283
------------ ------------
End of period (including undistributed net investment income
of $570 and $0, respectively) .............................................. $ 10,736,310 $ 10,327,526
============ ============
</TABLE>
See Notes to Financial Statements.
<PAGE>
THE 59 WALL STREET SHORT/INTERMEDIATE FIXED INCOME FUND
FINANCIAL HIGHLIGHTS
Selected per share data and ratios for a share outstanding
throughout each period
<TABLE>
<CAPTION>
For the period
For the six July 23, 1992
months ended For the years ended October 31, (commencement of
April 30, 1995 ------------------------------- operations) to
(unaudited) 1994 1993 October 31, 1992
---------- ------- ------- ----------------
<S> <C> <C> <C> <C>
Net asset value, beginning of period.............................. $ 9.37 $ 10.17 $ 9.93 $ 10.00
Income from investment operations:
Net investment income .......................................... 0.26 0.52 0.50 0.14
Net realized and unrealized gain (loss) ........................ 0.15 (0.74) 0.26 (0.09)
Less dividends and distributions (Note 1):
Dividends to shareholders from net
investment income ............................................ (0.26) (0.52) (0.52) (0.12)
Distributions to shareholders from net
realized gains ............................................... -- (0.05) -- --
Distributions to shareholders in excess of
net realized gains ........................................... -- (0.01) -- --
------- ------- ------- -------
Net asset value, end of period.................................... $ 9.52 $ 9.37 $ 10.17 $ 9.93
======= ======= ======= =======
Total investment return .......................................... 4.49%* (2.23)% 7.85% 0.49%*
Ratios/Supplemental Data:
Net assets, end of period (000's omitted) ..................... $10,736 $10,328 $9,729 $1,648
Ratio of expenses to average net assets ....................... 0.85%** 0.85% 0.85% 0.85%**
Ratio of net investment income to average
net assets .................................................. 5.73%** 5.29% 5.32% 6.23%**
Portfolio turnover rate ....................................... 103% 129% 149% 207%
<FN>
- -------------------
* Not annualized.
** Annualized.
</FN>
</TABLE>
See Notes to Financial Statements.
<PAGE>
THE 59 WALL STREET U.S. EQUITY FUND
THE 59 WALL STREET SHORT/INTERMEDIATE FIXED INCOME FUND
NOTES TO FINANCIAL STATEMENTS
(unaudited)
1. Organization and Significant Accounting Policies. The 59 Wall Street
U.S. Equity Fund and The 59 Wall Street Short/Intermediate Fixed Income Fund
(individually the "Fund" or collectively the "Funds") are separate diversified
series of The 59 Wall Street Fund, Inc. (the "Corporation") which is registered
under the Investment Company Act of 1940, as amended. The Corporation is an
open-end management investment company organized under the laws of the State of
Maryland on July 16, 1990. The Funds commenced operations on July 23, 1992.
The following is a summary of significant accounting policies for each
Fund.
A. Valuation of Investments. (1) The value of investments listed on a
securities exchange is based on the last sale price on that exchange prior
to the time when assets are valued, or in the absence of recorded sales, at
the average of readily available closing bid and asked prices on such
exchange; (2) unlisted securities are valued at the average of the quoted
bid and asked prices in the over-the-counter market; (3) bonds and other
fixed income securities (other than short-term obligations but including
listed issues) are valued on the basis of valuations furnished by a pricing
service, use of which has been approved by the Board of Directors. In
making such valuations, the pricing service utilizes both dealer-supplied
valuations and electronic data processing techniques which take into
account appropriate factors such as institutional-size trading in similar
groups of securities, yield, quality, coupon rate, maturity, type of issue,
trading characteristics and other market data, without exclusive reliance
upon quoted prices or exchange or over-the-counter prices, since such
valuations are believed to reflect more accurately the fair value of such
securities; (4) securities or other assets for which market quotations are
not readily available are valued at fair value in accordance with
procedures established by and under the general supervision and
responsibility of the Corporation's Board of Directors. Such procedures
include the use of independent pricing services, which use prices based
upon yields or prices of securities of comparable quality, coupon, maturity
and type; indications as to the value from dealers; and general market
conditions; (5) short-term investments which mature in 60 days or less are
valued at amortized cost if their original maturity was 60 days or less, or
by amortizing their value on the 61st day prior to maturity, if their
original maturity when acquired by a Fund was more than 60 days, unless
this is determined not to represent fair value by the Board of Directors.
B. Accounting for Investments. Security transactions are accounted for
on the trade date. Realized gains and losses on security transactions are
determined on the identified cost method. Dividend income and other
distributions from portfolio securities are recorded on the ex-dividend
date except that, if the ex-dividend date has passed, certain dividends
from foreign securities are recorded as soon as a Fund is informed of the
ex-dividend date. Dividend income is recorded net of foreign taxes withheld
where recovery of such taxes is not assured. Interest income is accrued
daily.
C. Deferred Organization Expenses. Expenses incurred by each Fund in
connection with its organization and initial public offering of its shares
are being amortized by each Fund on a straight-line basis over a five-year
period.
D. Federal Income Taxes. It is the Corporation's policy to comply with
the requirements of the Internal Revenue Code applicable to regulated
investment companies and to distribute all of its taxable income to its
shareholders. Accordingly, no federal income tax provision is required.
Each Fund files a tax return annually using tax accounting methods required
under provisions of the Internal Revenue Code which may differ from
generally accepted accounting principles, the basis on which these
financial statements are prepared. Accordingly, the amount of net
investment income and net realized gain reported on these financial
<PAGE>
THE 59 WALL STREET U.S. EQUITY FUND
THE 59 WALL STREET SHORT/INTERMEDIATE FIXED INCOME FUND
NOTES TO FINANCIAL STATEMENTS (continued)
(unaudited)
statements may differ from that reported on each Fund's tax return due to
certain book-to-tax timing differences such as losses deferred due to "wash
sale" transactions and utilization of capital loss carryforwards. These
timing differences may result in temporary over-distributions for financial
statement purposes and are classified as distributions in excess of
accumulated net realized gains. As such, the character of distributions to
shareholders reported in the Financial Highlights table may differ from
that reported to shareholders on Form 1099-DIV. These distributions do not
constitute a return of capital.
E. Dividends and Distributions to Shareholders. Dividends and
distributions to shareholders are recorded on the ex-dividend date.
2. Transactions with Affiliates.
Investment Advisory Agreement. The Corporation has an investment advisory
agreement with Brown Brothers Harriman & Co. (the "Adviser") for which the
Adviser receives a fee from each Fund calculated daily and paid monthly at an
annual rate equivalent to 0.65% and 0.40% of the average daily net assets for
the U.S. Equity Fund and the Short/Intermediate Fixed Income Fund, respectively.
Administrative Fee. The Corporation has an administration agreement with
Brown Brothers Harriman & Co. (the "Administrator") for which the Administrator
receives a fee from each Fund calculated daily and paid monthly at an annual
rate equivalent to 0.15% of each Fund's average daily net assets. The
Administrator has a subadministration services agreement with 59 Wall Street
Administrators, Inc. for which 59 Wall Street Administrators, Inc. receives such
compensation as is from time to time agreed upon, but not in excess of the
amount paid to the Administrator. For the six months ended April 30, 1995, the
U.S. Equity Fund and the Short/Intermediate Fixed Income Fund incurred $16,950
and $7,528, respectively, for administrative services.
Shareholder Servicing/Eligible Institution Agreement. The Corporation has a
shareholder servicing agreement and an eligible institution agreement with Brown
Brothers Harriman & Co. for which Brown Brothers Harriman & Co. receives a fee
from each Fund calculated daily and paid monthly at an annual rate equivalent to
0.25% of each Fund's average daily net assets.
Expense Reimbursement Fee. 59 Wall Street Administrators, Inc. (or prior to
July 1, 1993, 59 Wall Street Distributors, Inc.) has agreed to pay certain
expenses of each Fund subject to reimbursement by each Fund. To accomplish such
reimbursement, 59 Wall Street Administrators, Inc. receives an expense
reimbursement fee from each Fund, computed monthly, such that after such
reimbursement the aggregate expenses will not exceed 1.20% and 0.85% of the
average daily net assets for the U.S. Equity Fund and the Short/Intermediate
Fixed Income Fund, respectively. For the six months ended April 30, 1995, 59
Wall Street Administrators, Inc. incurred $128,300 and $62,500 in expenses,
including investment advisory fees of $73,448 and $20,074 and shareholder
servicing/eligible institution fees of $28,249 and $12,546, on behalf of the
U.S. Equity Fund and the Short/Intermediate Fixed Income Fund, respectively. The
expense reimbursement fee agreement of each Fund will terminate on the earlier
of either July 1, 1997 or the date on which the cumulative reimbursement fee
equals the cumulative payments of such reimbursable expenses made by 59 Wall
Street Administrators, Inc. and 59 Wall Street Distributors, Inc.
<PAGE>
THE 59 WALL STREET U.S. EQUITY FUND
THE 59 WALL STREET SHORT/INTERMEDIATE FIXED INCOME FUND
NOTES TO FINANCIAL STATEMENTS (continued)
(unaudited)
3. Investment Transactions. For the six months ended April 30, 1995, the
cost of purchases and the proceeds of sales of investment securities other than
short-term investments were as follows:
U.S. Equity Short/Intermediate
Fund Fixed Income Fund
----------- ------------------
Purchases................... $9,653,236 $10,819,115
Sales....................... 8,692,331 10,085,140
For the six months ended April 30, 1995, the U.S. Equity Fund paid brokerage
commissions of $18,961 to Brown Brothers Harriman & Co. for transactions
executed on its behalf. Custody fees for the U.S. Equity Fund paid pursuant to
the expense reimbursement agreement (see Note 2) were reduced by $8,500 as a
result of the U.S. Equity Fund directing a portion of its portfolio transactions
to certain brokers.
4. Capital Stock. The Corporation is permitted to issue 2,500,000,000
shares of capital stock, par value $.001 per share, of which 25,000,000 shares
have been classified as shares of each of the Funds. Transactions in shares of
capital stock were as follows:
<TABLE>
<CAPTION>
Short/Intermediate
U.S. Equity Fund Fixed Income Fund
------------------------------- -------------------------------
For the six For the year For the six For the year
months ended ended months ended ended
April 30, 1995 October 31, 1994 April 30, 1995 October 31, 1994
--------------- ---------------- --------------- ----------------
<S> <C> <C> <C> <C>
Capital stock sold.......................... 149,100 380,837 319,055 680,341
Capital stock issued in connection with
reinvestment of dividends................ 11,961 3,007 13,785 29,468
Capital stock repurchased................... (109,097) (24,008) (306,794) (564,403)
------- ------- -------- -------
Net increase................................ 51,964 359,836 26,046 145,406
======= ======= ======== =======
</TABLE>
<PAGE>
The 59 Wall Street Fund, Inc.
Investment Adviser and
Administrator
Brown Brothers Harriman & Co.
59 Wall Street
New York, New York 10005
Distributor
59 Wall Street Distributors, Inc.
6 St. James Avenue
Boston, Massachusetts 02116
Shareholder Servicing Agent
Brown Brothers Harriman & Co.
59 Wall Street
New York, New York 10005
(212) 493-8100
This report is submitted for the general information of
shareholders and is notauthorized for distribution to
prospective investors unless preceded oraccompanied by
an effective prospectus. Nothing herein contained is to be
considered an offer of sale or a solicitation of an offer to
buy shares of the Funds. Such offering is made only by
prospectus, which includes details as to offering price and
other material information.
