[LOGO]
59 WALL ST.
European Equity Fund
Pacific Basin Equity Fund
SEMI-ANNUAL REPORT
April 30, 1996
<PAGE>
THE 59 WALL STREET EUROPEAN EQUITY FUND
PORTFOLIO OF INVESTMENTS
April 30, 1996
(unaudited)
Shares Value
------ -----
COMMON STOCKS (99.0%)
FRANCE (12.4%)
CAPITAL EQUIPMENT
17,500 Alcatel Alsthom ....................................... $ 1,645,864
-----------
CONSUMER DURABLES
9,780 Peugeot SA ............................................ 1,366,456
-----------
CONSUMER NON-DURABLES
2,200 Bongrain SA ........................................... 1,221,868
6,020 LVMH .................................................. 1,540,095
-----------
2,761,963
-----------
FINANCE
13,530 Societe Generale ...................................... 1,570,972
-----------
MEDIA & ADVERTISING
6,520 Canal Plus ............................................ 1,597,353
17,220 Havas SA .............................................. 1,430,251
14,745 Television Francaise 1 ................................ 1,597,910
-----------
4,625,514
-----------
RETAIL
4,058 Comptoirs Modernes .................................... 1,570,585
-----------
SERVICES
9,915 Accor SA .............................................. 1,377,643
4,140 Sodexho SA ............................................ 1,641,579
-----------
3,019,222
-----------
TOTAL FRANCE .......................................... 16,560,576
-----------
GERMANY (6.1%)
BANKING
5,030 Commerzbank AG ........................................ 1,089,193
24,890 Depfa Bank AG ......................................... 848,689
-----------
1,937,882
-----------
CAPITAL EQUIPMENT
2,340 Siemens AG ............................................ 1,281,352
-----------
ENERGY
29,400 VEBA AG ............................................... 1,461,454
-----------
MULTI-INDUSTRY
12,247 Metallgesellschaft AG* ................................ 230,236
-----------
PHARMACEUTICALS
26,170 Merck KGaA* ........................................... 975,242
-----------
RETAIL
3,595 Kaufhof Holding AG .................................... 1,120,135
-----------
TRANSPORTATION
7,425 Lufthansa AG .......................................... 1,177,602
-----------
TOTAL GERMANY ......................................... 8,183,903
-----------
IRELAND (5.6%)
BANKING
15,200 Allied Irish Banks, Plc ............................... 79,278
270,700 Irish Permanent, Plc .................................. 1,601,526
-----------
1,680,804
-----------
CONSUMER NON-DURABLES
296,000 Greencore Group, Plc .................................. 1,424,007
-----------
MATERIALS
565,000 Smurfit (Jefferson)
Group, Plc. ........................................ 1,504,204
-----------
MEDIA & ADVERTISING
163,000 Independent
Newspapers, Plc. ................................... 1,357,699
-----------
PHARMACEUTICALS
22,650 Elan Corp., Plc., ADR* ................................ 1,497,731
-----------
TOTAL IRELAND ......................................... 7,464,445
-----------
ITALY (9.8%)
BANKING
152,000 Istituto Mobiliare
Italiano SpA (IMI) .................................. 1,206,658
-----------
CAPITAL EQUIPMENT
183,100 Sirti SpA ............................................. 1,161,665
-----------
CONSUMER DURABLES
300,000 Ente Nazionale
Idrocarbun SpA (ENI)* .............................. 1,296,415
398,000 Fiat SpA .............................................. 1,356,818
-----------
2,653,233
-----------
INSURANCE
45,425 Assicurazioni Generali
SpA ................................................ 1,132,717
240,140 Assicurazione Industriale
SAI SpA ........................................... 1,039,274
820,400 Istituto Nazionale
Delle Assicurazioni SpA ........................... 1,260,538
-----------
3,432,529
-----------
RETAIL
206,450 Rinascente SpA ........................................ 1,428,761
-----------
<PAGE>
THE 59 WALL STREET EUROPEAN EQUITY FUND
PORTFOLIO OF INVESTMENTS
April 30, 1996 (continued)
(unaudited)
Shares Value
------ -----
ITALY (continued)
TELECOMMUNICATIONS
713,200 Telecom Italia Mobile SpA ............................. $ 1,575,250
814,200 Telecom Italia SpA .................................... 1,660,196
-----------
3,235,446
-----------
TOTAL ITALY ........................................... 13,118,292
-----------
NETHERLANDS (4.9%)
CONSUMER DURABLES
35,420 PolyGram NV ........................................... 2,108,456
-----------
FINANCE
31,330 Fortis Amev NV ........................................ 2,237,988
-----------
MEDIA & ADVERTISING
145,860 Elsevier NV ........................................... 2,196,200
-----------
TOTAL NETHERLANDS ..................................... 6,542,644
-----------
SPAIN (3.8%)
CONSUMER NON-DURABLES
17,740 Tabacalera SA ......................................... 808,899
41,200 Viscofan Envolturas SA ................................ 638,082
-----------
1,446,981
-----------
ENERGY
16,740 Repsol SA ............................................. 613,932
-----------
FINANCE
16,360 Argentaria SA ......................................... 662,374
-----------
MULTI-INDUSTRY
10,510 Corp Fin Alba ......................................... 829,563
-----------
SERVICES
68,430 Autopistas Cesa SA (Acesa) ............................ 715,502
-----------
UTILITIES
47,710 Telefonica de Espana .................................. 849,553
-----------
TOTAL SPAIN ........................................... 5,117,905
-----------
SWEDEN (4.2%)
CAPITAL EQUIPMENT
7,280 ASEA AB (B free) ...................................... 738,563
43,980 Atlas Copco AB (A free) ............................... 826,862
35,000 Ericsson (LM)
Telephone Co., ADR ................................. 709,641
-----------
2,275,066
-----------
CONSUMER DURABLES
16,500 Electrolux AB (B free) ................................ 832,105
37,000 Volvo AB (B free) ..................................... 848,399
-----------
1,680,504
-----------
MATERIALS
9,790 Mo och Domsjo AB (B free) ............................. 521,144
46,850 Munksjo AB ............................................ 369,599
-----------
890,743
-----------
MULTI-INDUSTRY
19,310 Investor AB (B free) .................................. 771,648
-----------
TOTAL SWEDEN .......................................... 5,617,961
-----------
SWITZERLAND (11.0%)
CONSUMER DURABLES
4,720 SMH AG (Bearer) ....................................... 3,166,688
-----------
CONSUMER NON-DURABLES
2,630 Nestle AG (Registered)* ............................... 2,925,282
-----------
INSURANCE
3,950 Winterthur Insurance .................................. 2,478,294
-----------
MATERIALS
2,850 Ciba-Geigy AG ......................................... 3,289,344
-----------
PHARMACEUTICALS
2,670 Sandoz AG (Registered) ................................ 2,907,410
-----------
TOTAL SWITZERLAND ..................................... 14,767,018
-----------
UNITED KINGDOM (41.2%)
BANKING
940,600 Bank of Scotland ...................................... 3,532,737
-----------
CONSUMER DURABLES
170,600 THORN-EMI, Plc ........................................ 4,731,755
-----------
CONSUMER NON-DURABLES
313,000 Reckitt & Colman, Plc ................................. 3,434,849
-----------
MATERIALS
256,300 RTZ Corp., Plc ........................................ 4,035,674
218,200 Redland, Plc .......................................... 1,402,550
520,000 Rentokil Group, Plc ................................... 2,998,043
-----------
8,436,267
-----------
<PAGE>
THE 59 WALL STREET EUROPEAN EQUITY FUND
PORTFOLIO OF INVESTMENTS
April 30, 1996 (continued)
(unaudited)
Shares Value
------ -----
UNITED KINGDOM (continued)
MULTI-INDUSTRY
688,680 BTR, Plc .............................................. $ 3,317,441
892,500 Inchcape, Plc ......................................... 3,923,077
-----------
7,240,518
-----------
PHARMACEUTICALS
248,100 Glaxo Wellcome, Plc ................................... 3,008,348
-----------
RETAIL
857,272 Argyll Group, Plc ..................................... 4,284,424
275,700 Marks & Spencer, Plc .................................. 1,840,628
972,100 Tesco, Plc ............................................ 4,104,682
-----------
10,229,734
-----------
SERVICES
648,000 Ladbroke Group, Plc ................................... 1,907,030
103,000 Orange, Plc.* ......................................... 441,106
1,619,987 Takare, Plc ........................................... 3,657,957
-----------
6,006,093
-----------
TELECOMMUNICATIONS
592,200 Carlton Communications,
Plc ................................................ 4,154,225
1,092,000 Vodafone Group, Plc ................................... 4,364,384
-----------
8,518,609
-----------
TOTAL UNITED KINGDOM .................................. 55,138,910
-----------
TOTAL INVESTMENTS (identified cost $115,775,239) (a) ... 99.0% $132,511,654
CASH AND OTHER ASSETS IN EXCESS OF LIABILITIES ......... 1.0 1,356,856
----- ------------
NET ASSETS ............................................. 100.0% $133,868,510
===== ============
- ---------
* non-income producing security.
(a) The aggregate cost for federal income tax purposes is $115,775,239, the
aggregate gross unrealized appreciation is $19,744,422, and the aggregate
gross unrealized depreciation is $3,008,007, resulting in net unrealized
appreciation of $16,736,415.
See Notes to Financial Statements.
<PAGE>
THE 59 WALL STREET EUROPEAN EQUITY FUND
STATEMENT OF ASSETS AND LIABILITIES
April 30, 1996
(unaudited)
ASSETS:
Investments in securities, at value (identified
cost $115,775,239) (Note 1) ........................... $132,511,654
Cash (including $3,614,312 in foreign currency) ........... 5,477,978
Receivables for:
Dividends ............................................... 613,741
Foreign tax reclaim ..................................... 403,458
Capital stock sold ...................................... 320,500
------------
Total Assets .......................................... 139,327,331
------------
LIABILITIES:
Payables for:
Investments purchased ................................... 4,945,970
Capital stock redeemed .................................. 151,350
Foreign withholding taxes ............................... 105,369
Investment advisory fee (Note 2) ........................ 70,520
Custodian fees .......................................... 64,982
Shareholder servicing/Eligible
institution fees (Note 2) ............................. 27,123
Administrative fee (Note 2) ............................. 16,274
Directors' fees (Note 2) ................................ 2,131
Accrued expenses and other liabilities .................. 75,102
------------
Total Liabilities .................................... 5,458,821
------------
NET ASSETS ................................................... $133,868,510
============
Net Assets Consist of:
Paid-in capital .......................................... $111,394,397
Accumulated undistributed net investment income .......... 5,119,169
Accumulated net realized gain ............................ 727,456
Net unrealized appreciation .............................. 16,627,488
------------
Net Assets ................................................... $133,868,510
============
NET ASSET VALUE AND OFFERING PRICE PER SHARE
($133,868,510 / 3,996,197 shares) ............................ $33.50
======
See Notes to Financial Statements.
<PAGE>
THE 59 WALL STREET EUROPEAN EQUITY FUND
STATEMENT OF OPERATIONS
For the six months ended April 30, 1996
(unaudited)
INVESTMENT INCOME:
Income:
Dividends (net of foreign withholding tax
of $169,870) ...................................... $ 957,405
Interest ............................................. 44,476
------------
Total Income ...................................... 1,001,881
------------
Expenses:
Investment advisory fee (Note 2) ..................... 401,631
Shareholder servicing/Eligible institution
fees (Note 2) .................................... 154,473
Administrative fee (Note 2) .......................... 92,684
Custodian fee ........................................ 84,968
Directors' fees and expenses (Note 2) ................ 6,380
Miscellaneous expenses ............................... 105,554
------------
Total Expenses ..................................... 845,690
Fees paid indirectly (Note 3) .................. (58,695)
------------
Net Expenses ................................... 786,995
------------
Net Investment Income .......................... 214,886
------------
NET REALIZED AND UNREALIZED GAIN (LOSS) (Notes 1 and 3):
Net realized gain (loss) on:
Investments .......................................... 5,014,574
Foreign exchange transactions ........................ (4,262,399)
------------
752,175
------------
Net change in unrealized appreciation/depreciation on:
Investments .......................................... 5,410,208
Foreign currency translations ........................ 5,286,844
------------
10,697,052
------------
Net Realized and Unrealized Gain ................... 11,449,227
------------
Net Increase in Net Assets Resulting from Operations ...... $ 11,664,113
============
See Notes to Financial Statements.
<PAGE>
THE 59 WALL STREET EUROPEAN EQUITY FUND
STATEMENT OF CHANGES IN NET ASSETS
For the six
months ended For the
April 30, 1996 year ended
(unaudited) October 31, 1995
-------------- ----------------
INCREASE (DECREASE) IN NET ASSETS:
Operations:
Net investment income ................... $ 214,886 $ 1,709,242
Net realized gain on investments and
foreign exchange transactions ........ 752,175 8,772,423
Net change in unrealized appreciation
on investments and foreign
currency translations ................ 10,697,052 (1,037,893)
------------- -------------
Net increase in net assets
resulting from operations ......... 11,664,113 9,443,772
------------- -------------
Distributions declared from
net realized gains (Note 1) .......... (5,095,644) (8,414,966)
------------- -------------
Capital stock transactions (Note 4):
Net proceeds from sales of capital stock 15,553,015 24,158,027
Net asset value of capital stock issued
to shareholders in reinvestment
of distributions ..................... 3,750,446 706,260
Net cost of capital stock redeemed ...... (8,958,841) (19,569,245)
------------- -------------
Net increase in net assets resulting
from capital stock transactions .... 10,344,620 5,295,042
------------- -------------
Total increase in net assets ....... 16,913,089 6,323,848
NET ASSETS:
Beginning of period ........................ 116,955,421 110,631,573
------------- -------------
End of period (including undistributed
net investment income of $5,119,169
and $4,904,283, respectively) ........... $ 133,868,510 $ 116,955,421
============= =============
See Notes to Financial Statements.
<PAGE>
THE 59 WALL STREET EUROPEAN EQUITY FUND
FINANCIAL HIGHLIGHTS
Selected per share data and ratios for a share
outstanding throughout each period
<TABLE>
<CAPTION>
For the six
months ended For the years ended October 31,
April 30, 1996 ----------------------------------------------------
(unaudited) 1995 1994 1993 1992 1991
--------------- -------- -------- -------- -------- --------
<S> <C> <C> <C> <C> <C> <C>
Net asset value, beginning of period ....... $31.95 $31.82 $31.17 $27.15 $25.35 $25.00
Income from investment operations:
Net investment income .................. 0.47 0.45 0.39 0.21 0.29 0.31
Net realized and unrealized gain ....... 2.47 2.09 1.80 6.09 1.74 0.04
Less dividends and distributions (Note 1):
From net investment income ............. -- -- (0.25) (0.36) (0.23) --
From net realized gains ................ (1.39) (2.41) (1.29) (1.91) -- --
In excess of net realized gains ........ -- -- -- (0.01) -- --
------ ------ ------ ------ ------ ------
Net asset value, end of period ............. $33.50 $31.95 $31.82 $31.17 $27.15 $25.35
====== ====== ====== ====== ====== ======
Cumulative investment return ............... 9.65% 9.42% 7.35% 24.82% 7.87% 1.60%
Ratios/Supplemental Data:
Net assets, end of period
(000's omitted) ...................... $133,869 $116,955 $110,632 $88,860 $27,426 $14,231
Expenses as a percentage of average
net assets:
Expenses paid by Fund ............... 1.27%* 1.24% 1.37% 1.50% 1.50% 1.50%
Expenses paid by commissions ** ...... n/a 0.05% n/a n/a n/a n/a
Expense offset arrangements .......... 0.09%* 0.14% n/a n/a n/a n/a
------ ------ ------ ------ ------ ------
Total expenses .................... 1.36%* 1.43% 1.37% 1.50% 1.50% 1.50%
Ratio of net investment income to
average net assets ................... 0.35%* 1.55% 1.30% 1.28% 1.71% 1.54%
Portfolio turnover rate ................ 30% 72% 124% 37% 50% 58%
Average commission rate paid
per share *** ....................... $0.0187 $0.0216 -- -- -- --
</TABLE>
- -------------
* Annualized
** A portion of the Fund's securities transactions are directed to certain
unaffiliated brokers which in turn use a portion of the commissions they
receive from the Fund to pay other unaffiliated service providers on behalf
of the Fund for services provided for which the Fund would otherwise be
obligated to pay.
*** Most foreign securities markets do not charge commissions based on a rate
per share but as a percentage of the principal value of the transaction. As
a result, the above rate is not indicative of the commission arrangements
currently in effect.
See Notes to Financial Statements.
<PAGE>
THE 59 WALL STREET PACIFIC BASIN EQUITY FUND
PORTFOLIO OF INVESTMENTS
April 30, 1996
(unaudited)
Shares Value
------ -----
COMMON STOCKS AND RIGHTS (94.3%)
AUSTRALIA (4.7%)
ENERGY
133,400 Broken Hill Proprietary
Co., Ltd. .......................................... $ 2,052,872
281,000 Woodside Petroleum, Ltd. .............................. 1,624,635
-----------
3,677,507
-----------
GOLD MINES
144,000 RGC, Ltd. ............................................. 761,288
-----------
MATERIALS
77,693 CRA, Ltd. ............................................. 1,259,688
233,000 WMC, Ltd. ............................................. 1,698,539
-----------
2,958,227
-----------
TOTAL AUSTRALIA ....................................... 7,397,022
-----------
HONG KONG (5.8%)
BANKING
254,172 Dao Heng Bank Group, Ltd. ............................. 972,593
-----------
INSURANCE
1,114,000 National Mutual Asia, Ltd. ............................ 943,275
-----------
MULTI-INDUSTRY
162,000 Hutchison Whompoa, Ltd. ............................... 1,005,236
128,200 Jardine Matheson
Hldgs., Ltd. ...................................... 1,025,600
122,500 Swire Pacific, Ltd. ................................... 1,045,181
-----------
3,076,017
-----------
REAL ESTATE
142,000 Cheung Kong Hldgs., Ltd. .............................. 1,014,220
224,000 New World Development
Co., Ltd. .......................................... 1,004,822
105,500 Sun Hung Kai
Properties, Ltd. ................................... 1,005,833
-----------
3,024,875
-----------
TELECOMMUNICATIONS
515,800 Hong Kong
Telecommunications, Ltd. ........................... 983,524
-----------
TOTAL HONG KONG ....................................... 9,000,284
-----------
INDIA (6.1%)
CONSUMER DURABLES
141,000 Ashok Leyland, Ltd. ................................... 1,868,250
44,000 Bajaj Auto, Ltd. ...................................... 1,573,000
-----------
3,441,250
-----------
MATERIALS
70,000 Grasim Industries, Ltd. ............................... 1,365,000
598,000 Indo Gulf Fertilisers and
Chemicals Corp., Ltd. .............................. 1,076,400
136,000 Reliance Industries, Ltd. ............................. 2,244,680
41,000 Southern Petrochemicals
Industries Corp., Ltd. ............................. 322,875
-----------
5,008,955
-----------
PHARMACEUTICALS
46,000 Ranbaxy Laboratories, Ltd. ............................ 1,092,500
-----------
TOTAL INDIA ........................................... 9,542,705
-----------
INDONESIA (2.9%)
BANKING
308,000 Bank Bali ............................................. 791,943
681,625 Bank Dagang Nasional .................................. 679,142
-----------
1,471,085
-----------
CAPITAL EQUIPMENT
105,000 Supreme Cable
Manufacturing Corp. ......... ...................... 119,242
202,500 Voksel Electric ....................................... 121,491
-----------
240,733
-----------
MATERIALS
728,000 Kurnia Kapuas Utama
Glue Industries ................................... 304,178
243,000 Semen Cibinong ........................................ 718,534
-----------
1,022,712
-----------
REAL ESTATE
300,000 Ciputra Development ................................... 662,096
999,000 Dharmala Intiland ..................................... 781,305
-----------
1,443,401
-----------
TEXTILES
348,000 Roda Vivatex .......................................... 257,253
-----------
TRANSPORTATION
230,000 Centris Multipersada
Pratama............................................. 103,493
-----------
TOTAL INDONESIA ....................................... 4,538,677
-----------
<PAGE>
THE 59 WALL STREET PACIFIC BASIN EQUITY FUND
PORTFOLIO OF INVESTMENTS
April 30, 1996 (continued)
(unaudited)
Shares Value
------ -----
JAPAN (58.6%)
BANKING
381,000 Asahi Bank, Ltd. ...................................... $ 4,917,069
193,700 Bank of Tokyo-Mitsubishi
Bank, Ltd. ......................................... 4,481,182
412,000 Mitsui Trust and
Banking Co., Ltd. .................................. 4,962,669
174,000 Sanwa Bank, Ltd. ...................................... 3,526,409
304,000 Sumitomo Trust and
Banking Co., Ltd. .................................. 4,446,441
-----------
22,333,770
-----------
CAPITAL EQUIPMENT
11,000 Autobacs Seven Co., Ltd. .............................. 1,046,317
97,000 Bridgestone Corp. ..................................... 1,798,958
51,000 Fanuc, Ltd. ........................................... 2,218,345
219,000 Hitachi, Ltd. ......................................... 2,365,757
285,000 Ishikawajima Harina Heavy
Industries Co., Ltd. ............................... 1,416,758
122,100 Kandenko .............................................. 1,669,165
264,000 Kubota, Ltd. .......................................... 1,839,836
72,500 Kurita Water Industries, Ltd. ......................... 1,822,810
25,000 Kyocera Corp. ......................................... 1,883,275
27,300 Mabuchi Motor Co., Ltd. ............................... 1,680,723
142,000 Matsushita Electric
Industrial Co., Ltd. .............................. 1,615,410
31,000 Murata Mfg. Co., Ltd. ................................. 1,203,193
184,000 NEC Corp. ............................................. 2,339,468
77,000 NipponDenso Co., Ltd. ................................. 1,678,314
81,000 Nippon Electric Glass, Ltd. ........................... 1,509,966
125,000 Sekisui House, Ltd. ................................... 1,553,463
-----------
27,641,758
-----------
CONSUMER DURABLES
82,000 Canon, Inc. ........................................... 1,630,515
29,000 TDK Corp. ............................................. 1,660,628
117,000 Toppan Printing ....................................... 1,722,480
-----------
5,013,623
-----------
CONSUMER NON-DURABLES
23,000 Bandai Co., Ltd. ...................................... 943,263
124,000 Kao Corp. ............................................. 1,659,576
20,000 Nintendo Co., Ltd. .................................... 1,529,564
35,000 Sony Corp. ............................................ 2,275,226
82,000 Yamazaki Baking, Ltd. ................................. 1,677,549
-----------
8,085,178
-----------
ENERGY
241,000 Cosmo Oil Co. ......................................... 1,578,175
-----------
FINANCE
18,000 Orix Corp. ............................................ 745,089
16,000 Sanyo Shinpan
Finance, Ltd. ...................................... 1,116,581
306,000 Yamaichi Securities
Co., Ltd. .......................................... 2,419,215
-----------
4,280,885
-----------
MATERIALS
261,000 Dai Nippon Ink &
Chemicals .......................................... 1,419,712
506,000 Kawasaki Steel Corp. .................................. 1,852,665
120,000 Sumitomo Electric
Industries, Ltd. ................................... 1,720,759
79,000 Sumitomo Forestry Co., Ltd. ........................... 1,215,907
46,000 Tostem Corp. .......................................... 1,429,186
-----------
7,638,229
-----------
MULTI-INDUSTRY
17,600 Homewide Corp. ........................................ 227,140
-----------
PHARMACEUTICALS
65,000 Sankyo Co. ............................................ 1,578,318
79,000 Taisho Pharmaceutical ................................. 1,729,458
68,000 Yamanouchi Pharmaceutical
Co., Ltd. ......................................... 1,612,160
-----------
4,919,936
-----------
SERVICES
37,000 Ito-Yokado Co., Ltd. .................................. 2,182,400
12,000 Kato Denki Co., Ltd. .................................. 264,997
24,000 Secom Co., Ltd. ....................................... 1,697,816
71,000 Seino Transportation
Co., Ltd. ......................................... 1,248,889
-----------
5,394,102
-----------
TELECOMMUNICATIONS
270 DDI Corp. ............................................. 2,320,444
75,000 Matsushita Communications
Industrial Co., Ltd. ............................... 2,007,552
-----------
4,327,996
-----------
TOTAL JAPAN ........................................... 91,440,792
-----------
<PAGE>
THE 59 WALL STREET PACIFIC BASIN EQUITY FUND
PORTFOLIO OF INVESTMENTS
April 30, 1996 (continued)
(unaudited)
Shares Value
------ -----
MALAYSIA (9.6%)
BANKING
483,000 Commerce Asset
Hldgs., Bhd. ....................................... $ 3,293,226
76,666 Commerce Asset Hldgs.,
Bhd. (Rights)* ..................................... 307,488
-----------
3,600,714
-----------
FINANCE
1,620,000 Public Finance, Bhd ................................... 3,898,448
-----------
MATERIALS
1,686,000 Lion Land, Bhd ........................................ 2,136,831
-----------
REAL ESTATE
1,745,000 Bolton Properties, Bhd ................................ 3,009,465
650,000 IOI Properties, Bhd ................................... 2,150,764
-----------
5,160,229
-----------
TOTAL MALAYSIA ........................................ 14,796,222
-----------
PAKISTAN (0.1%)
BANKING
18 Muslim Commercial Bank* ............................... 20
-----------
ENERGY
24,336 Pakistan State Oil .................................... 225,026
-----------
TEXTILES
57 Crescent Textile Mills* ............................... 38
-----------
TOTAL PAKISTAN ........................................ 225,084
-----------
SINGAPORE (2.9%)
REAL ESTATE
376,000 DBS Land, Ltd. ........................................ 1,524,541
436,000 First Capital Corp., Ltd. ............................. 1,383,241
606,000 Wing Tai Hldgs., Ltd. ................................. 1,569,099
-----------
TOTAL SINGAPORE ....................................... 4,476,881
-----------
SOUTH KOREA (3.6%)
BANKING
27,844 Bank of Seoul* ........................................ 255,095
1,290 Shinhan Bank .......................................... 28,510
-----------
283,605
-----------
ENERGY
11,000 Korea Electric Power Corp. ............................ 465,018
-----------
MATERIALS
9,647 L.G. Chemical, Ltd. ................................... 193,374
-----------
MULTI-INDUSTRY
251,000 CITC Seoul Access Trust* .............................. 4,701,230
-----------
TOTAL SOUTH KOREA ..................................... 5,643,227
-----------
TOTAL INVESTMENTS (identified cost $135,080,265) (a) .. 94.3% $147,060,894
CASH AND OTHER ASSETS IN EXCESS OF LIABILITIES ........ 5.7 8,943,697
----- ------------
NET ASSETS ............................................ 100.0% $156,004,591
===== ============
- ---------
* non-income producing security.
(a) The aggregate cost for federal income tax purposes is $135,080,265, the net
aggregate gross unrealized appreciation is $15,716,538, and the aggregate
gross unrealized depreciation is $3,735,909, resulting in net unrealized
appreciation of $11,980,629.
See Notes to Financial Statements.
<PAGE>
THE 59 WALL STREET PACIFIC BASIN EQUITY FUND
STATEMENT OF ASSETS AND LIABILITIES
April 30, 1996
(unaudited)
ASSETS:
Investments in securities, at value
(identified cost $135,080,265) (Note 1) .............. $ 147,060,894
Cash (including $6,439,102 in foreign currency) .......... 6,934,965
Receivables for:
Forward foreign currency exchange
contracts sold (Notes 1 and 5) ....................... 84,808,551
Spot foreign currency exchange
contracts sold (Note 1) .............................. 6,115,647
Investments sold ....................................... 1,875,629
Capital stock sold ..................................... 645,344
Dividends .............................................. 361,203
-------------
Total Assets ......................................... 247,802,233
-------------
LIABILITIES:
Payables for:
Forward foreign currency exchange contracts
sold, at value (Notes 1 and 5) ..................... 85,246,561
Spot foreign currency exchange contracts sold,
at value (Note 1) .................................. 6,115,410
Capital stock redeemed ................................. 158,418
Investment advisory fee (Note 2) ....................... 80,195
Foreign withholding taxes .............................. 47,398
Shareholder servicing/Eligible institution fees (Note 2) 30,844
Administrative fee (Note 2) ............................ 18,506
Directors' fees (Note 2) ............................... 2,667
Accrued expenses and other liabilities ................. 97,643
-------------
Total Liabilities .................................... 91,797,642
-------------
NET ASSETS ..................................................... $ 156,004,591
=============
Net Assets Consist of:
Paid-in capital .......................................... $ 143,969,194
Distributions in excess of net investment income ......... (1,982,901)
Accumulated net realized gain ............................ 2,472,186
Net unrealized appreciation .............................. 11,546,112
-------------
Net Assets ..................................................... $ 156,004,591
=============
NET ASSET VALUE AND OFFERING PRICE PER SHARE
($156,004,591 / 4,653,823 shares) ........................ $ 33.52
=======
See Notes to Financial Statements.
<PAGE>
THE 59 WALL STREET PACIFIC BASIN EQUITY FUND
STATEMENT OF OPERATIONS
For the six months ended April 30, 1996
(unaudited)
INVESTMENT INCOME:
Income:
Dividends (net of foreign withholding tax of $63,570) .. $ 808,922
Interest ............................................... 95,686
------------
Total Income ...................................... 904,608
------------
Expenses:
Investment advisory fee (Note 2) ...................... 423,417
Shareholder servicing/Eligible
institution fees (Note 2) .......................... 162,853
Custodian fee ......................................... 124,307
Administrative fee (Note 2) ........................... 97,712
Director's fees and expenses (Note 2) ................. 6,937
Miscellaneous expenses ................................ 63,437
------------
Total Expenses ........................................ 878,663
Fees paid indirectly (Note 3) ....................... (94,474)
------------
Net Expenses ........................................ 784,189
------------
Net Investment Income ............................... 120,419
------------
NET REALIZED AND UNREALIZED GAIN (LOSS) (Notes 1 and 3):
Net realized gain on:
Investments ............................................ 4,633,568
Foreign exchange transactions .......................... 4,016,755
------------
8,650,323
------------
Net change in unrealized appreciation/depreciation on:
Investments ............................................ 14,127,839
Foreign currency translations .......................... (1,640,366)
------------
12,487,473
------------
Net Realized and Unrealized Gain ............................... 21,137,796
------------
Net Increase in Net Assets Resulting from Operations ....... $ 21,258,215
============
See Notes to Financial Statements.
<PAGE>
THE 59 WALL STREET PACIFIC BASIN EQUITY FUND
STATEMENT OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
For the six
months ended For the
April 30, 1996 year ended
(unaudited) October 31, 1995
------------- ----------------
<S> <C> <C>
INCREASE (DECREASE) IN NET ASSETS:
Operations:
Net investment income .................................... $ 120,419 $ 562,988
Net realized gain (loss) on investments and foreign
exchange transactions ................................. 8,650,323 (2,413,051)
Net change in unrealized depreciation/appreciation on
investments and foreign currency translations ............ 12,487,473 (10,854,466)
------------- -------------
Net increase (decrease) in net assets resulting
from operations ..................................... 21,258,215 (12,704,529)
------------- -------------
Dividends and distributions declared (Note 1):
From net investment income ............................... (3,156,364) (10,397)
In excess of net investment income ....................... (1,982,901) --
From net realized gains .................................. -- (16,806,025)
------------- -------------
Total dividends and distributions declared ............ (5,139,265) (16,816,422)
------------- -------------
Capital stock transactions (Note 4):
Net proceeds from sales of capital stock ................. 31,633,029 43,542,375
Net asset value of capital stock issued to shareholders in
reinvestment of dividends and distributions ........... 1,701,044 1,433,236
Net cost of capital stock redeemed ....................... (8,380,643) (20,991,748)
------------- -------------
Net increase in net assets resulting from capital stock
transactions ....................................... 24,953,430 23,983,863
------------- -------------
Total increase (decrease) in net assets ............... 41,072,380 (5,537,088)
NET ASSETS:
Beginning of period ......................................... 114,932,211 120,469,299
------------- -------------
End of period (including distributions in excess of net
investment income of $1,982,901 and undistributed
net investment income of $3,035,945, respectively) ....... $ 156,004,591 $ 114,932,211
============= =============
</TABLE>
See Notes to Financial Statements.
<PAGE>
THE 59 WALL STREET PACIFIC BASIN EQUITY FUND
FINANCIAL HIGHLIGHTS
Selected per share data and ratios for a share
outstanding throughout each period
<TABLE>
<CAPTION>
For the six
months ended For the years ended October 31,
April 30, 1996 -------------------------------------------------
(unaudited) 1995 1994 1993 1992 1991
------------ ------ ------ ------ ------ ------
<S> <C> <C> <C> <C> <C> <C>
Net asset value, beginning of period ....... $29.88 $39.85 $39.87 $27.53 $27.65 $25.00
Income from investment operations:
Net investment income .................. 0.66 0.11 0.14 0.14 0.12 0.10
Net realized and unrealized gain/(loss) 4.34 (4.50) 1.26 13.18 0.33 2.55
Less dividends and distributions (Note 1):
From net investment income ............. (0.80) (0.00)* (0.14) (0.02) (0.18) --
From net realized gains ................ -- (5.58) (1.28) (0.96) (0.39) --
In excess of net realized gains ........ (0.56) -- -- -- -- --
------ ------ ------ ------ ------ ------
Net asset value, end of period ............. $33.52 $29.88 $39.85 $39.87 $27.53 $27.65
====== ====== ====== ====== ====== ======
Cumulative investment return ............... 17.30% (10.62)% 3.48% 50.02% 1.68% 10.68%
Ratios/Supplemental Data:
Net assets, end of period (000's omitted) $156,005 $114,932 $120,469 $92,863 $31,250 $20,492
Expenses as a percentage of average
net assets:
Expenses paid by Fund ................ 1.20%** 1.24% 1.29% 1.50% 1.50% 1.50%
Expenses paid by commissions *** ..... n/a 0.05% n/a n/a n/a n/a
Expense offset arrangements .......... 0.15%** 0.14% n/a n/a n/a n/a
------ ------ ------ ------ ------ ------
Total expenses .................... 1.35%** 1.43% 1.29% 1.50% 1.50% 1.50%
Ratio of net investment income to
average net assets ................... 0.18%** 0.53% 0.39% 0.62% 0.43% 0.64%
Portfolio turnover rate ................ 44% 82% 86% 79% 84% 56%
Average commission rate paid
per share **** ....................... $0.0143 $0.0092 -- -- -- --
</TABLE>
- ---------------
* Less than $0.01 per share.
** Annualized
*** A portion of the Fund's securities transactions are directed to certain
unaffiliated brokers which in turn use a portion of the commissions they
receive from the Fund to pay other unaffiliated service providers on behalf
of the Fund for services provided for which the Fund would otherwise be
obligated.
**** Most foreign securities markets do not charge commissions based on a rate
per share but as a percentage of the principal value of transaction. As a
result, the above rate is not indicative of the commission arrangements
currently in effect.
See Notes to Financial Statements.
<PAGE>
THE 59 WALL STREET EUROPEAN EQUITY FUND
THE 59 WALL STREET PACIFIC BASIN EQUITY FUND
NOTES TO FINANCIAL STATEMENTS
(unaudited)
1. Organization and Significant Accounting Policies. The 59 Wall Street
European Equity Fund and The 59 Wall Street Pacific Basin Equity Fund
(individually the "Fund" or collectively the "Funds") are separate
non-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 November 1, 1990.
The following is a summary of significant accounting policies for each
Fund.
A. Valuation of Investments. (1) The value of investments listed on
either a domestic or foreign 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) 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; (4) for
purposes of calculating net asset value per share, all assets and
liabilities initially expressed in foreign currencies will be converted
into U.S. dollars at the prevailing rates of exchange available at the time
of valuation; and (5) trading in securities on most foreign exchanges and
over-the-counter markets is normally completed before the close of the New
York Stock Exchange and may also take place on days on which the New York
Stock Exchange is closed. If events materially affecting the value of
foreign securities occur between the time when the exchange on which they
are traded closes and the time when a Fund's net asset value is calculated,
such securities will be valued at fair value in accordance with procedures
established by and under the general supervision of the Corporation's Board
of Directors.
B. Foreign Currency Translations. The accounting records of the Funds
are maintained in U.S. dollars. Foreign currency amounts are translated
into U.S. dollars at the current rate of exchange of such currency against
the U.S. dollar to determine the value of investments, assets and
liabilities. Purchases and sales of securities, and income and expenses are
translated at the prevailing rate of exchange on the respective dates of
such transactions. Upon the purchase or sale of a security denominated in
foreign currency, each Fund may enter into forward foreign currency
exchange contracts for the purchase or sale, for a fixed amount of U.S.
dollars, of the amount of foreign currency involved in the underlying
security transaction. The Funds isolate that portion of realized gain or
loss on investments resulting from changes in foreign exchange rates on
investments from the fluctuations arising from changes in market prices of
such investments. Reported net realized and unrealized gains and losses
arise from the sales of portfolio securities, sales of foreign currencies,
currency gains or losses realized between the trade and settlement dates on
securities transactions, and the difference between the amounts of
dividends, interest and foreign withholding taxes recorded on the Funds'
books and the U.S. dollar equivalent of the amounts actually received or
paid. Net unrealized appreciation or depreciation on foreign currency
translations arise from changes in the value of the assets and liabilities,
excluding investments in securities, at fiscal year end, arising from
changes in the exchange rate.
C. Forward Foreign Currency Exchange Contracts. The Funds may enter
into forward foreign currency exchange contracts ("contracts") in
connection with planned purchases or sales of securities, to hedge the U.S.
dollar value of portfolio securities denominated in a particular
currency, or to increase or shift its exposure to a currency other
than U.S. dollars. The Funds have no specific limitation on the
<PAGE>
THE 59 WALL STREET EUROPEAN EQUITY FUND
THE 59 WALL STREET PACIFIC BASIN EQUITY FUND
NOTES TO FINANCIAL STATEMENTS (continued)
(unaudited)
percentage of assets which maybe committed to these types of contracts. The
Funds could be exposed to risks if the counterparties to the contracts are
unable to meet the terms of their contracts or if the value of the foreign
currency changes unfavorably. The U.S. dollar values of foreign currency
underlying all contractual commitments held by the Funds are determined
using forward currency exchange rates supplied by a quotation service.
D. 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 the 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.
E. 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
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, utilization of capital loss carry forwards and the
recognition of unrealized gains or losses on open forward foreign currency
exchange contracts and passive foreign investment companies at year-end.
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 or net investment income. In addition,
during the year ended October 31, 1995, the European Equity Fund and
Pacific Basin Equity Fund reclassified $1,956,856 and $2,010,596,
respectively, from accumulated net realized gain (loss) to accumulated
undistributed net investment income due to differences between book and tax
accounting for foreign currency translations. 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.
F. 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% of each Fund's average daily net assets. For the
six months ended April 30, 1996, the European Equity Fund and the Pacific Basin
Equity Fund incurred $401,631 and $423,417, respectively, for advisory services.
Administrative Fee. The Corporation has an administrative 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, 1996, the
European Equity Fund and the Pacific Basin Equity Fund incurred $92,684 and
$97,712, respectively, for administrative services.
<PAGE>
THE 59 WALL STREET EUROPEAN EQUITY FUND
THE 59 WALL STREET PACIFIC BASIN EQUITY FUND
NOTES TO FINANCIAL STATEMENTS (continued)
(unaudited)
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. For the six months ended April
30, 1996, the European Equity Fund and the Pacific Basin Equity Fund incurred
$154,473 and $162,853, respectively, for such services.
Board of Directors' Fees. Each Director receives an annual fee as well as
reimbursement for reasonable out-of-pocket expenses from each Fund. For the six
months ended April 30, 1996, the European Equity Fund and the Pacific Basin
Equity Fund incurred $6,380 and $6,937, respectively, for these fees.
3. Investment Transactions. For the six months ended April 30, 1996, the
cost of purchases and the proceeds of sales of investment securities other than
short-term investments were as follows:
European Pacific Basin
Equity Fund Equity Fund
-------------------- ---------------------
Purchases................. $42,180,849 $70,208,620
Sales..................... $34,392,054 $54,983,571
There were no purchases or sales of U.S. government obligations during the
year. Custody fees for the European Equity Fund and the Pacific Basin Equity
Fund were reduced by $58,695 and $94,474, respectively, as a result of an
expense offset arrangement with the Funds' custodian.
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>
European Equity Fund Pacific Basin Equity Fund
--------------------------------- ---------------------------------
For the six For the year For the six For the year
months ended ended months ended ended
April 30, 1996 October 31, 1995 April 30, 1996 October 31, 1995
-------------- ---------------- -------------- ----------------
<S> <C> <C> <C> <C>
Capital stock sold....................... 493,247 819,896 1,024,839 1,474,684
Capital stock issued in connection
with reinvestment of dividends
and distributions..................... 123,370 26,294 57,063 49,320
Capital stock repurchased................ (281,189) (662,437) (274,629) (700,221)
-------- -------- -------- --------
Net increase............................. 335,428 183,753 807,273 823,783
======= ======= ======= =======
</TABLE>
5. Financial Instruments with Off-Balance Sheet Risk. At April 30, 1996,
the Pacific Basin Equity Fund had outstanding forward foreign currency exchange
contracts as a hedge to protect against possible changes in foreign currency
exchange rates that would adversely affect a portfolio position or an
anticipated portfolio position. Forward contracts involve elements of market
risk in excess of the amount reflected in the Statement of Assets and
Liabilities. The Fund bears the risk of an unfavorable change in the foreign
exchange rate underlying the forward contracts.
Forward foreign currency exchange contracts open at April 30, 1996:
Contracts In exchange Deliver Unrealized
to deliver For Date Depreciation
-------- ---------- ------ -------------
Pacific Basin
Equity Fund:
JPY 8,892,000,000 $84,808,550 5/20/96 $(438,010)
============= =========== ====== =========
<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
(800) 625-5759
This report is submitted for the general information of shareholders and is not
authorized for distribution to prospective investors unless preceded or
accompanied 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.
