European Equity Fund
Pscific Basin Equity Fund
ANNUAL REPORT
October 31, 1995
<PAGE>
THE 59 WALL STREET EUROPEAN EQUITY FUND
PORTFOLIO OF INVESTMENTS
October 31, 1995
Shares Value
------ ------------
COMMON STOCKS (96.9%)
FRANCE (11.8%)
CAPITAL EQUIPMENT
12,900 Alcatel Alsthom SA* .................................... $ 1,101,622
------------
CONSUMER DURABLES
8,540 Peugeot SA ............................................. 1,112,448
------------
CONSUMER NON-DURABLES
2,120 Bongrain SA ............................................ 1,121,539
6,920 LVMH ................................................... 1,376,896
------------
2,498,435
------------
FINANCE
10,490 Societe Generale ....................................... 1,199,139
------------
MEDIA & ADVERTISING
9,520 Canal + ................................................ 1,645,038
16,690 Havas .................................................. 1,157,013
12,295 Television Francaise 1 ................................. 1,269,703
------------
4,071,754
------------
RETAIL
4,058 Comptoirs Modernes ..................................... 1,302,849
------------
SERVICES
9,570 Accor .................................................. 1,137,026
5,340 Sodexho ................................................ 1,383,567
------------
2,520,593
------------
TOTAL FRANCE ........................................... 13,806,840
------------
GERMANY (12.6%)
BANKING
39,200 BHF-Bank ............................................... 1,047,116
4,660 Commerzbank AG ......................................... 1,078,593
23,100 Depfa Bank AG .......................................... 902,600
------------
3,028,309
------------
CAPITAL EQUIPMENT
1,296 Rheinelektra AG ........................................ 1,058,824
2,160 Siemens AG ............................................. 1,132,481
------------
2,191,305
------------
CONSUMER NON-DURABLES
1,840 Suedzucker AG .......................................... 1,026,144
1,300 Wella AG ............................................... 712,063
------------
1,738,207
------------
ENERGY
28,000 VEBA AG ................................................ 1,149,560
------------
INSURANCE
1,610 Colonia Konzern AG ..................................... 1,258,170
------------
MATERIALS
4,530 Bayer AG ............................................... 1,204,911
------------
MULTI-INDUSTRY
35,800 AGIV AG ................................................ 752,828
11,094 Metallgesellschaft ..................................... 230,928
------------
983,756
------------
PHARMACEUTICALS
24,000 Merck KGaA* ............................................ 1,002,558
------------
RETAIL
3,340 Kaufhof Holding AG ..................................... 1,143,706
------------
TRANSPORTATION
7,200 Lufthansa AG ........................................... 1,001,535
------------
TOTAL GERMANY .......................................... 14,702,017
------------
IRELAND (4.8%)
BANKING
226,300 Allied Irish Banks ..................................... 1,144,872
270,700 Irish Permanent, PLC ................................... 1,426,467
------------
2,571,339
------------
CONSUMER NON-DURABLES
148,000 Greencore .............................................. 1,197,993
------------
MEDIA & ADVERTISING
163,000 Independent News ....................................... 976,364
------------
PHARMACEUTICALS
22,650 Elan, PLC, ADR* ........................................ 908,831
------------
TOTAL IRELAND .......................................... 5,654,527
------------
<PAGE>
THE 59 WALL STREET EUROPEAN EQUITY FUND
PORTFOLIO OF INVESTMENTS
October 31, 1995 (continued)
Shares Value
------ ------------
ITALY (4.2%)
BANKING
113,700 Istituto Mobiliare Italiano (IMI) ...................... $ 621,284
------------
CAPITAL EQUIPMENT
95,400 Sirti SpA .............................................. 581,138
------------
INSURANCE
28,350 Assicurazioni Generali SpA ............................. 660,729
156,140 Assicurazione Industriale
SAI SpA ............................................. 661,195
528,000 Istituto Nazionale
Delle Assicurazioni SpA ............................. 693,952
------------
2,015,876
------------
RETAIL
133,450 Rinascente ............................................. 791,156
------------
TELECOMMUNICATIONS
270,200 Telecom Italia Mobile SpA .............................. 453,441
270,200 Telecom Italia SpA ..................................... 410,216
------------
863,657
------------
TOTAL ITALY ............................................ 4,873,111
------------
NETHERLANDS (9.0%)
CONSUMER DURABLES
35,020 Polygram NV ............................................ 2,186,253
------------
FINANCE
33,910 Fortis Amev NV ......................................... 2,129,852
------------
FOOD & BEVERAGES
52,200 Ahold NV ............................................... 1,978,426
------------
MEDIA & ADVERTISING
170,560 Elsevier NV ............................................ 2,205,238
22,220 Wolters Kluwer NV ...................................... 2,022,304
------------
4,227,542
------------
TOTAL NETHERLANDS ...................................... 10,522,073
------------
SPAIN (2.7%)
CONSUMER NON-DURABLES
15,340 Tabacalera SA .......................................... 515,292
41,200 Viscofan Envoltura ..................................... 516,456
------------
1,031,748
------------
ENERGY
16,740 Repsol SA .............................................. 499,916
------------
MULTI-INDUSTRY
10,520 Corp Fin Alba .......................................... 581,787
------------
SERVICES
59,920 Autopistas Cesa SA (Acesa) ............................. 559,656
------------
UTILITIES
43,300 Telefonica De Espana SA ................................ 546,327
------------
TOTAL SPAIN ............................................ 3,219,434
------------
SWEDEN (3.2%)
CAPITAL EQUIPMENT
6,260 Asea AB (B free) ....................................... 617,459
36,780 Atlas Copco AB (A free) ................................ 556,635
------------
1,174,094
------------
CONSUMER DURABLES
10,390 Electrolux AB (B free) ................................. 444,351
28,100 Volvo AB (B free) ...................................... 632,616
------------
1,076,967
------------
MATERIALS
9,790 Mo och Domsjo AB (B free) .............................. 498,301
46,850 Munksjo AB ............................................. 338,644
------------
836,945
------------
MULTI-INDUSTRY
18,810 Investor AB (B free) ................................... 669,904
------------
TOTAL SWEDEN ........................................... 3,757,910
------------
SWITZERLAND (13.1%)
CONSUMER DURABLES
4,280 SMH AG (Bearer) ........................................ 2,669,109
------------
INSURANCE
4,000 Winterthur Insurance ................................... 2,681,230
------------
MATERIALS
4,300 Ciba-Geigy AG .......................................... 3,711,794
------------
PHARMACEUTICALS
4,000 Sandoz AG (Registered) ................................. 3,329,516
------------
<PAGE>
THE 59 WALL STREET EUROPEAN EQUITY FUND
PORTFOLIO OF INVESTMENTS
October 31, 1995 (continued)
Shares Value
------ ------------
SWITZERLAND (continued)
SERVICES
1,530 SGS Surveillance Holdings .............................. $ 2,890,734
------------
TOTAL SWITZERLAND ...................................... 15,282,383
------------
UNITED KINGDOM (35.5%)
BANKING
429,200 Bank of Scotland ....................................... 1,710,014
------------
CONSUMER DURABLES
143,600 Thorn-EMI, Ltd. ........................................ 3,344,234
------------
MATERIALS
313,200 Redland ................................................ 1,725,695
553,700 Rentokil Group ......................................... 2,757,557
165,700 RTZ Corp., PLC ......................................... 2,294,912
------------
6,778,164
------------
MEDIA & ADVERTISING
272,200 Reuters Holdings, PLC .................................. 2,530,492
------------
MULTI-INDUSTRY
413,680 BTR, PLC ............................................... 2,197,573
472,500 Inchcape, PLC .......................................... 2,334,486
------------
4,532,059
------------
PHARMACEUTICALS
180,500 Glaxo Wellcome ......................................... 2,434,253
25,800 SmithKline Beecham Group,
Class A ............................................. 269,421
45,600 SmithKline Beecham Group,
PLC, ADR ............................................... 2,365,500
------------
5,069,174
------------
RETAIL
475,272 Argyll Group, PLC ...................................... 2,415,809
332,700 Marks & Spencer ........................................ 2,230,274
512,100 Tesco .................................................. 2,428,933
------------
7,075,016
------------
SERVICES
403,200 BAA .................................................... 3,136,354
801,000 Ladbroke Group, PLC .................................... 2,102,229
725,933 Takare, PLC ............................................ 2,353,084
------------
7,591,667
------------
TELECOMMUNICATIONS
685,400 Vodafone Group ......................................... 2,833,709
------------
TOTAL UNITED KINGDOM ................................... 41,464,529
------------
TOTAL INVESTMENTS (identified cost $101,956,617) (a).. 96.9% $113,282,824
CASH AND OTHER ASSETS IN EXCESS OF LIABILITIES ....... 3.1 3,672,597
------ ------------
NET ASSETS ........................................... 100.0% $116,955,421
====== ============
- ---------
* non-income producing security
(a) The aggregate cost for federal income tax purposes is $101,959,026, the
aggregate gross unrealized appreciation is $14,857,331 and the aggregate
gross unrealized depreciation is $3,533,533 resulting in net unrealized
appreciation of $11,323,798.
See Notes to Financial Statements.
<PAGE>
THE 59 WALL STREET EUROPEAN EQUITY FUND
STATEMENT OF ASSETS AND LIABILITIES
October 31, 1995
<TABLE>
<CAPTION>
<S> <C>
ASSETS:
Investments in securities, at value (identified cost $101,956,617) (Note 1) ........... $113,282,824
Cash (including $5,152,140 in foreign currency)........................................ 9,348,584
Receivables for:
Forward foreign currency exchange contracts sold (Notes 1 and 5).................... 115,407,018
Investments sold.................................................................... 547,115
Foreign tax reclaim................................................................. 387,483
Dividends........................................................................... 333,663
Capital stock sold.................................................................. 20,000
------------
Total Assets ................................................................... 239,326,687
------------
LIABILITIES:
Payables for:
Forward foreign currency exchange contracts sold, at value (Notes 1 and 5).......... 120,821,959
Investments purchased............................................................... 1,262,600
Investment advisory fee (Note 2) ................................................... 65,790
Foreign withholding taxes........................................................... 34,484
Capital stock redeemed.............................................................. 28,252
Shareholder servicing/Eligible institution fees (Note 2)............................ 25,304
Administrative fee (Note 2)......................................................... 15,182
Directors' fee (Note 2)............................................................. 2,433
Accrued expenses and other liabilities.............................................. 115,262
------------
Total Liabilities .............................................................. 122,371,266
------------
NET ASSETS ............................................................................... $116,955,421
============
Net Assets Consist of:
Paid-in capital......................................................................... $101,049,777
Accumulated undistributed net investment income......................................... 4,904,283
Accumulated net realized gain........................................................... 5,070,925
Net unrealized appreciation............................................................. 5,930,436
------------
Net Assets .................................................................................. $116,955,421
============
NET ASSET VALUE AND OFFERING PRICE PER SHARE
($116,955,421 / 3,660,769 shares) ...................................................... $31.95
======
</TABLE>
See Notes to Financial Statements.
<PAGE>
THE 59 WALL STREET EUROPEAN EQUITY FUND
STATEMENT OF OPERATIONS
For the year ended October 31, 1995
<TABLE>
<CAPTION>
<S> <C>
INVESTMENT INCOME:
Income:
Dividends (net of foreign withholding tax of $461,794).............................. $ 2,979,696
Interest............................................................................ 95,838
------------
Total Income ................................................................... 3,075,534
------------
Expenses:
Investment advisory fee (Note 2).................................................... 715,205
Custodian fee....................................................................... 307,418
Shareholder servicing/Eligible institution fees (Note 2)............................ 275,074
Administrative fee (Note 2)......................................................... 165,044
Directors' fees and expenses (Note 2)............................................... 13,575
Miscellaneous expenses.............................................................. 102,809
------------
Total expenses ..................................................................... 1,579,125
Fees paid indirectly (Note 3)................................................... (212,833)
------------
Net Expenses ................................................................... 1,366,292
------------
Net Investment Income .......................................................... 1,709,242
------------
NET REALIZED AND UNREALIZED GAIN (LOSS) (Notes 1 and 3):
Net realized gain on:
Investments......................................................................... 283,637
Foreign exchange transactions ...................................................... 8,488,786
------------
8,772,423
------------
Net change in unrealized appreciation on:
Investments......................................................................... 4,419,897
Foreign currency translations....................................................... (5,457,790)
------------
(1,037,893)
------------
Net Realized and Unrealized Gain ............................................... 7,734,530
------------
Net Increase in Net Assets Resulting from Operations .................................. $ 9,443,772
============
</TABLE>
See Notes to Financial Statements.
<PAGE>
THE 59 WALL STREET EUROPEAN EQUITY FUND
STATEMENT OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
For the years ended October 31,
---------------------------------
1995 1994
-------------- --------------
INCREASE (DECREASE) IN NET ASSETS:
<S> <C> <C>
Operations:
Net investment income............................................ $ 1,709,242 $ 1,324,706
Net realized gain on investments and foreign exchange
transactions.................................................. 8,772,423 10,791,923
Net change in unrealized appreciation on investments
and foreign currency translations............................. (1,037,893) (5,089,115)
------------ ------------
Net increase in net assets resulting from operations ......... 9,443,772 7,027,514
------------ ------------
Dividends and distributions declared from (Note 1):
Net investment income............................................ -- (714,767)
Net realized gains............................................... (8,414,966) (3,746,831)
------------ ------------
Total dividends and distributions declared.................... (8,414,966) (4,461,598)
------------ ------------
Capital stock transactions (Note 4):
Net proceeds from sales of capital stock......................... 24,158,027 31,154,810
Net asset value of capital stock issued to shareholders in
reinvestment of dividends and distributions................... 706,260 1,592,154
Net cost of capital stock redeemed............................... (19,569,245) (13,540,971)
------------ ------------
Net increase in net assets resulting from capital stock
transactions............................................... 5,295,042 19,205,993
------------ ------------
Total increase in net assets............................... 6,323,848 21,771,909
NET ASSETS:
Beginning of year................................................... 110,631,573 88,859,664
------------ ------------
End of year (including undistributed net investment income of
$4,904,283 and $1,238,185, respectively)......................... $116,955,421 $110,631,573
============ ============
</TABLE>
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 year
<TABLE>
<CAPTION>
For the years ended October 31,
-------------------------------------------------------------
1995 1994 1993 1992 1991
------ ------ ------ ----- ------
<S> <C> <C> <C> <C> <C>
Net asset value, beginning of year............ $31.82 $31.17 $27.15 $25.35 $25.00
Income from investment operations:
Net investment income....................... 0.45 0.39 0.21 0.29 0.31
Net realized and unrealized gain............ 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..................... (2.41) (1.29) (1.91) -- --
In excess of net realized gains............. -- -- (0.01) -- --
------ ------ ------ ------ ------
Net asset value, end of year.................. $31.95 $31.82 $31.17 $27.15 $25.35
====== ====== ====== ====== ======
Cumulative investment return.................. 9.42% 7.35% 24.82% 7.87% 1.60%
Ratios/Supplemental Data:
Net assets, end of year (000's omitted)..... $116,955 $110,632 $88,860 $27,426 $14,231
Expenses as a percentage of average
net assets:
Expenses paid by Fund................... 1.24% 1.37% 1.50% 1.50% 1.50%
Expenses paid by commissions*........... 0.05% n/a n/a n/a n/a
Expense offset arrangement.............. 0.14% n/a n/a n/a n/a
------ ------ ------ ------ ------
Total expenses........................ 1.43% 1.37% 1.50% 1.50% 1.50%
Ratio of net investment income to
average net assets........................ 1.55% 1.30% 1.28% 1.71% 1.54%
Portfolio turnover rate..................... 72% 124% 37% 50% 58%
Average commission rate paid per share**.... $0.0216 -- -- -- --
</TABLE>
- ----------------
* 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
October 31, 1995
Shares Value
------ -----
COMMON STOCKS, RIGHTS
& WARRANTS (96.4%)
AUSTRALIA (7.6%)
BANKING
69,500 National Australia Bank, Ltd. ...................... $ 595,049
------------
CAPITAL EQUIPMENT
180,000 Pacific BBA, Ltd. .................................. 383,912
------------
ENERGY
92,400 Broken Hill Proprietary Co., Ltd. .................. 1,251,426
146,000 Woodside Petroleum, Ltd. ........................... 699,528
------------
1,950,954
------------
GOLD MINES
144,000 Renison Goldfields Corp., Ltd. ..................... 605,484
------------
INSURANCE
148,000 QBE Insurance Group ................................ 653,870
------------
MATERIALS
83,000 Amcor, Ltd. ........................................ 622,121
41,900 CRA, Ltd. .......................................... 645,990
110,000 Western Mining Corp. ...............................
Hldgs., Ltd...................................... 705,515
------------
1,973,626
------------
REAL ESTATE
52,000 Lend Lease Corp., Ltd. ............................. 723,278
------------
SERVICES
60,000 Brambles Industries, Ltd. .......................... 638,026
235,000 Burns Philp & Co., Ltd. ............................ 526,280
140,000 Hazelton Airlines, Ltd. ............................ 143,967
165,000 Publishing and Broadcasting,
Ltd ............................................. 525,366
------------
1,833,639
------------
TOTAL AUSTRALIA .................................... 8,719,812
------------
HONG KONG (24.5%)
BANKING
848,672 Dao Heng Bank Group, Ltd. .......................... 3,111,845
------------
CAPITAL EQUIPMENT
1,264,000 Alco Hldgs ......................................... 238,685
3,344,000 Truly International Hldgs .......................... 519,006
361,200 Truly International Hldgs
(Warrants)* ..................................... 8,129
822,000 Wai Kee Hldgs ...................................... 101,000
476,000 Wai Kee Hldgs. (Warrants)* ......................... 6,156
------------
872,976
------------
FINANCE
1,083,000 Great Eagle Hldgs., Ltd. ........................... 2,969,541
------------
INSURANCE
3,562,000 National Mutual Asia, Ltd. ......................... 2,741,169
------------
MATERIALS
1,048,000 M.C. Packaging (Hong Kong) ......................... 447,301
------------
MULTI-INDUSTRY
500,000 Hutchison Whompoa .................................. 2,754,892
323,000 Jardine Matheson
Strategic Hldgs .................................... 1,970,300
312,000 Swire Pacific ...................................... 2,340,494
------------
7,065,686
------------
REAL ESTATE
500,000 Cheung Kong Hldgs .................................. 2,819,561
767,000 New World Development Co. .......................... 2,985,980
320,500 Sun Hung Kai Properties ............................ 2,559,706
------------
8,365,247
------------
SERVICES
768,000 Wharf Hldgs ........................................ 2,592,548
------------
TOTAL HONG KONG .................................... 28,166,313
------------
INDIA (5.6%)
CONSUMER DURABLES
93,000 Ashok Leyland, Ltd. ................................ 964,875
44,000 Bajaj Auto, Ltd. ................................... 1,188,000
------------
2,152,875
------------
MATERIALS
51,000 Grasim Industries .................................. 1,071,000
598,000 Indo Gulf Fertilisers and
Chemicals Corp. ................................. 882,050
64,000 Reliance Industries ................................ 1,016,000
41,000 Southern Petrochemical
Industries ......................................... 267,525
------------
3,236,575
------------
PHARMACEUTICALS
46,000 Ranbaxy Laboratories, Ltd. ......................... 1,046,500
------------
TOTAL INDIA ........................................ 6,435,950
------------
INDONESIA (4.0%)
BANKING
308,000 Bank Bali........................................... 718,802
681,625 Bank Dagang Nasional Indonesia...................... 607,790
------------
1,326,592
------------
<PAGE>
THE 59 WALL STREET PACIFIC BASIN EQUITY FUND
PORTFOLIO OF INVESTMENTS
October 31, 1995 (continued)
Shares Value
------ -----
INDONESIA (continued)
CAPITAL EQUIPMENT
105,000 Supreme Cable
Manufacturing Corp. ............................. $ 258,916
202,500 Voksel Electric .................................... 312,087
------------
571,003
------------
CONSUMER NON-DURABLES
417,000 Sinar Mas Agro Resources
& Technology .................................... 238,705
------------
MATERIALS
728,000 Kurnia Kapuas Utama Glue
Industries ...................................... 192,338
243,000 Semen Cibinong ..................................... 636,658
------------
828,996
------------
MULTI-INDUSTRY
230,000 Centris Multipersada Pratama ....................... 141,788
------------
REAL ESTATE
300,000 Ciputra Development ................................ 673,712
999,000 Dharmala Intiland .................................. 560,865
------------
1,234,577
------------
TEXTILES
348,000 Roda Vivatex ....................................... 283,487
------------
TOTAL INDONESIA .................................... 4,625,148
------------
JAPAN (36.0%)
CAPITAL EQUIPMENT
11,000 Autobacs Seven Co., Ltd. ........................... 1,037,685
80,000 Bridgestone Corp. .................................. 1,110,514
28,000 Fanuc, Ltd. ........................................ 1,212,571
109,000 Hitachi, Ltd. ...................................... 1,118,823
285,000 Ishikawajima Harina Heavy
Industries Co., Ltd. ............................ 1,147,857
91,000 Kandenko ........................................... 1,120,876
14,000 Kyocera Corp. ...................................... 1,146,879
115,000 Matsushita Electric
Industrial Co., Ltd. ............................ 1,135,442
31,000 Murata Mfg. Co., Ltd. .............................. 1,087,932
84,000 NEC Corp. .......................................... 1,108,559
63,000 NipponDenso Co., Ltd. .............................. 1,151,669
65,000 Nippon Electric Glass, Ltd. ........................ 1,200,938
98,000 Sekisui House, Ltd. ................................ 1,130,456
------------
14,710,201
------------
CONSUMER DURABLES
67,000 Canon, Inc. ........................................ 1,146,195
48,000 Fuji Photo Film Co., Ltd. .......................... 1,187,155
252,000 Isuzu Motors, Ltd.* ................................ 1,017,410
85,000 Sharp Corp. ........................................ 1,179,921
23,000 TDK Corp. .......................................... 1,184,906
96,000 Toppan Printing .................................... 1,266,924
------------
6,982,511
------------
CONSUMER NON-DURABLES
15,000 Bandai Co., Ltd. ................................... 558,678
101,000 Kao Corp. .......................................... 1,224,302
27,000 Sony Music Entertainment
(Japan), Inc. ................................... 1,156,068
66,000 Yamazaki Baking, Ltd. .............................. 1,167,799
------------
4,106,847
------------
ENERGY
241,000 Cosmo Oil Co. ...................................... 1,177,966
------------
FINANCE
18,000 Orix Corp. ......................................... 633,462
16,000 Sanyo Shinpan Finance, Ltd. ........................ 1,141,796
------------
1,775,258
------------
MATERIALS
261,000 Dai Nippon Ink & Chemicals ......................... 1,109,878
98,000 Sumitomo Electric Industries, Ltd. ................. 1,130,456
79,000 Sumitomo Forestry Co., Ltd. ........................ 1,112,078
70,000 Tokuyama Corp. ..................................... 521,433
37,000 Tostem Corp. ....................................... 1,135,735
------------
5,009,580
------------
MULTI-INDUSTRY
16,000 Homewide Corp. ..................................... 189,257
------------
PHARMACEUTICALS
53,000 Sankyo Co. ......................................... 1,165,746
65,000 Taisho Pharmaceutical .............................. 1,175,522
55,000 Yamanouchi Pharmaceutical
Co., Ltd. ....................................... 1,225,866
------------
3,567,134
------------
SERVICES
12,000 Kato Denki Co., Ltd. ............................... 314,385
19,000 Secom Co., Ltd. .................................... 1,237,011
71,000 Seino Transportation Co., Ltd. ..................... 1,096,632
------------
2,648,028
------------
TELECOMMUNICATIONS
150 DDI Corp. .......................................... 1,215,602
------------
TOTAL JAPAN ........................................ 41,382,384
------------
<PAGE>
THE 59 WALL STREET PACIFIC BASIN EQUITY FUND
PORTFOLIO OF INVESTMENTS
October 31, 1995 (continued)
Shares Value
------ -----
MALAYSIA (10.0%)
BANKING
470,000 Commerce Asset-Hldgs. Bhd .......................... $ 2,330,579
76,666 Commerce Asset-Hldgs
Bhd. (Rights)* .................................. 208,184
------------
2,538,763
------------
FINANCE
1,577,000 Public Finance Bhd ................................. 2,966,572
------------
REAL ESTATE
1,618,000 Bolton Properties Bhd .............................. 2,101,299
591,000 IOI Properties Bhd ................................. 1,244,333
1,639,000 Lion Land .......................................... 1,773,810
200,000 Negara Properties (M) Bhd .......................... 794,963
------------
5,914,405
------------
TOTAL MALAYSIA ..................................... 11,419,740
------------
PAKISTAN (0.2%)
BANKING
118 Muslim Commercial Bank* ............................ 134
------------
ENERGY
18,720 Pakistan State Oil ................................. 195,867
------------
TEXTILES
14,655 Crescent Textile Mills* ............................ 11,029
------------
TOTAL PAKISTAN ..................................... 207,030
------------
SINGAPORE (7.7%)
BANKING
251,500 Development Bank of Singapore ...................... 2,883,439
130,000 Overseas Chinese Banking Corp. ..................... 1,527,247
225,000 Overseas Union Bank ................................ 1,401,274
------------
5,811,960
------------
ENERGY
376,000 DBS Land ........................................... 1,112,300
------------
REAL ESTATE
580,000 Hotel Properties ................................... 878,415
606,000 Wing Tai Hldgs ..................................... 1,050,743
------------
1,929,158
------------
TOTAL SINGAPORE .................................... 8,853,418
------------
SOUTH KOREA (0.8%)
BANKING
27,844 Bank of Seoul ...................................... 267,832
------------
ENERGY
11,000 Korea Electric Power Corp. ......................... 452,852
------------
MATERIALS
9,647 LG Chemicals ....................................... 228,205
------------
TOTAL SOUTH KOREA .................................. 948,889
------------
TOTAL COMMON STOCKS,
RIGHTS & WARRANTS
(cost $112,219,706) ................................ $110,758,684
------------
Principal
Amount
----------
CONVERTIBLE BONDS (2.2%)
INDIA
FINANCE
$1,755,000 Industrial Credit & Investment
Corp., 2.50%, 4/3/2000 ......................... $ 1,338,188
------------
MATERIALS
1,255,000 Essar Gujurat, Ltd.
5.50%, 8/5/98 .................................. 1,245,587
------------
TOTAL CONVERTIBLE BONDS
(cost $3,269,963)................................. $ 2,583,775
------------
TOTAL INVESTMENTS (identified cost $115,489,669) (a) .. 98.6% $113,342,459
CASH AND OTHER ASSETS IN EXCESS OF LIABILITIES ........ 1.4 1,589,752
---- ------------
NET ASSETS ............................................ 100.0% $114,932,211
===== ============
- ---------
* non-income producing security.
(a) The aggregate cost for federal income tax purposes is $115,489,669, the
net aggregate gross unrealized appreciation is $7,857,778 and the
aggregate gross unrealized depreciation is $10,004,988, resulting in net
unrealized depreciation of $2,147,210.
See Notes to Financial Statements.
<PAGE>
THE 59 WALL STREET PACIFIC BASIN EQUITY FUND
STATEMENT OF ASSETS AND LIABILITIES
October 31, 1995
<TABLE>
<CAPTION>
<S> <C>
ASSETS:
Investments in securities, at value (identified cost $115,489,669) (Note 1)............ $113,342,459
Cash (including $196,235 in foreign currency).......................................... 330,288
Receivables for:
Forward foreign currency exchange contracts sold (Notes 1 and 5)................... 28,889,570
Dividends........................................................................... 198,322
Spot foreign currency exchange contracts sold, at value (Note 1).................... 196,522
Capital stock sold.................................................................. 76,000
Interest............................................................................ 42,083
------------
Total Assets ................................................................... 143,075,244
------------
LIABILITIES:
Payables for:
Forward foreign currency exchange contracts sold, at value (Notes 1 and 5).......... 27,681,002
Spot foreign currency exchange contracts sold (Note 1).............................. 196,378
Investment advisory fee (Note 2).................................................... 65,012
Foreign withholding taxes .......................................................... 28,635
Shareholder servicing/Eligible institution fees (Note 2)............................ 25,005
Capital stock redeemed.............................................................. 22,630
Administrative fee (Note 2)......................................................... 15,003
Directors' fees (Note 2)............................................................ 2,386
Accrued expenses and other liabilities.............................................. 106,982
------------
Total Liabilities .............................................................. 28,143,033
------------
NET ASSETS .................................................................................. $114,932,211
============
Net Assets Consist of:
Paid-in capital........................................................................ $119,015,764
Accumulated undistributed net investment income ....................................... 3,035,945
Accumulated net realized loss.......................................................... (6,178,137)
Net unrealized depreciation............................................................ (941,361)
------------
Net Assets .................................................................................. $114,932,211
============
NET ASSET VALUE AND OFFERING PRICE PER SHARE
($114,932,211 / 3,846,550 shares) ..................................................... $29.88
======
</TABLE>
See Notes to Financial Statements.
<PAGE>
THE 59 WALL STREET PACIFIC BASIN EQUITY FUND
STATEMENT OF OPERATIONS
For the year ended October 31, 1995
<TABLE>
<CAPTION>
<S> <C>
INVESTMENT INCOME:
Income:
Dividends (net of foreign withholding tax of $206,422).............................. $ 1,743,131
Interest............................................................................ 143,566
-------------
Total Income .................................................................... 1,886,697
-------------
Expenses:
Investment advisory fee (Note 2).................................................... 695,032
Custodian fee....................................................................... 293,039
Shareholder servicing/Eligible institution fees (Note 2)............................ 267,320
Administrative fee (Note 2)......................................................... 160,392
Directors' fees and expenses (Note 2)............................................... 13,555
Miscellaneous expenses.............................................................. 98,827
-----------
Total expenses...................................................................... 1,528,165
Fees paid indirectly (Note 3)................................................... (204,456)
-------------
Net Expenses ................................................................... 1,323,709
-------------
Net Investment Income .......................................................... 562,988
-------------
NET REALIZED AND UNREALIZED GAIN (LOSS) (Notes 1 and 3):
Net realized gain (loss) on:
Investments......................................................................... (9,161,009)
Foreign exchange transactions ...................................................... 6,747,958
-------------
(2,413,051)
-------------
Net change in unrealized appreciation on:
Investments......................................................................... (12,050,502)
Foreign currency translations....................................................... 1,196,036
-------------
(10,854,466)
-------------
Net Realized and Unrealized Loss ............................................... (13,267,517)
-------------
Net Decrease in Net Assets Resulting from Operations .................................. $(12,704,529)
=============
</TABLE>
See Notes to Financial Statements.
<PAGE>
THE 59 WALL STREET PACIFIC BASIN EQUITY FUND
STATEMENT OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
For the years ended October 31,
-------------------------------
1995 1994
----------- ------------
<S> <C> <C>
INCREASE (DECREASE) IN NET ASSETS:
Operations:
Net investment income ................................ $ 562,988 $ 449,580
Net realized (loss) gain on investments and foreign
exchange transactions .............................. (2,413,051) 16,354,172
Net change in unrealized appreciation on investments and
foreign currency translations ...................... (10,854,466) (14,361,293)
------------ ------------
Net (decrease) increase in net assets resulting from
operations ....................................... (12,704,529) 2,442,459
------------ ------------
Dividends and distributions declared (Note 1):
From net investment income ........................... (10,397) (339,931)
From net realized gains .............................. (16,805,935) (3,042,219)
------------ ------------
Total dividends and distributions declared ......... (16,816,422) (3,382,150)
------------ ------------
Capital stock transactions (Note 4):
Net proceeds from sales of capital stock ............. 43,542,375 42,763,878
Net asset value of capital stock issued to shareholders
in reinvestment of dividends and distributions ..... 1,433,236 1,225,765
Net cost of capital stock redeemed ................... (20,991,748) (15,443,461)
------------ ------------
Net increase in net assets resulting from
capital stock transactions ............ .......... 23,983,863 28,546,182
------------ ------------
Total (decrease) increase in net assets .......... (5,537,088) 27,606,491
NET ASSETS:
Beginning of year ....................................... 120,469,299 92,862,808
------------ ------------
End of year (including undistributed net investment
income of $3,035,945 and $472,758, respectively) ..... $114,932,211 $120,469,299
============ ============
</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 year
<TABLE>
<CAPTION>
For the years ended October 31,
------------------------------------------------------------
1995 1994 1993 1992 1991
------ ------ ------ ------- -------
<S> <C> <C> <C> <C> <C>
Net asset value, beginning of year............ $39.85 $39.87 $27.53 $ 27.65 $25.00
Income from investment operations:
Net investment income....................... 0.11 0.14 0.14 0.12 0.10
Net realized and unrealized gain............ (4.50) 1.26 13.18 0.33 2.55
Less dividends and distributions (Note 1):
From net investment income................. (0.00)* (0.14) (0.02) (0.18) --
From net realized gains..................... (5.58) (1.28) (0.96) (0.39) --
------ ------ ------ ------ ------
Net asset value, end of year.................. $29.88 $39.85 $39.87 $27.53 $27.65
====== ====== ====== ====== ======
Cumulative investment return.................. (10.62)% 3.48% 50.02% 1.68% 10.68%
Ratios/Supplemental Data:
Net assets, end of year (000's omitted) ... $114,932 $120,469 $92,863 $31,250 $20,492
Expenses as a percentage of average
net assets:
Expenses paid by Fund..................... 1.24% 1.29% 1.50% 1.50% 1.50%
Expenses paid by commissions**............ 0.05% n/a n/a n/a n/a
Expenses offset arrangements.............. 0.14% n/a n/a n/a n/a
------ ------- ------ ------ ------
Total expenses.......................... 1.43% 1.29% 1.50% 1.50% 1.50%
Ratio of net investment income to
average net assets....................... 0.53% 0.39% 0.62% 0.43% 0.64%
Portfolio turnover rate..................... 82% 86% 79% 84% 56%
Average commission rate paid per share*** $0.0092 -- -- -- --
</TABLE>
- -----------
* Less than $0.01 per share.
** 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 EUROPEAN EQUITY FUND
THE 59 WALL STREET PACIFIC BASIN EQUITY FUND
NOTES TO FINANCIAL STATEMENTS
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 percentage of assets which may
<PAGE>
THE 59 WALL STREET EUROPEAN EQUITY FUND
THE 59 WALL STREET PACIFIC BASIN EQUITY FUND
NOTES TO FINANCIAL STATEMENTS (continued)
be 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 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.
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 carryforwards 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
year ended October 31, 1995, the European Equity Fund and the Pacific Basin
Equity Fund incurred $715,205 and $695,032, 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
<PAGE>
THE 59 WALL STREET EUROPEAN EQUITY FUND
THE 59 WALL STREET PACIFIC BASIN EQUITY FUND
NOTES TO FINANCIAL STATEMENTS (continued)
compensation as is from time to time agreed upon, but not in excess of the
amount paid to the Administrator. For the year ended October 31, 1995, the
European Equity Fund and the Pacific Basin Equity Fund incurred $165,044 and
$160,392, 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. For the year ended October 31,
1995, the European Equity Fund and the Pacific Basin Equity Fund incurred
$275,074 and $267,320, 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 year
ended October 31, 1995, the European Equity Fund and the Pacific Basin Equity
Fund incurred $13,575 and $13,555, respectively, for these fees.
3. Investment Transactions. For the year ended October 31, 1995, 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................ $75,110,122 $93,073,396
Sales.................... 80,887,721 78,417,172
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 $55,433 and $53,772, respectively, as a result of each Fund directing
a portion of its portfolio transactions to certain unaffiliated brokers.
Additionally, custody fees for the European Equity Fund and the Pacific Basin
Equity Fund were further reduced by $157,400 and $150,684, 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>
For the years ended October 31,
------------------------------------------------------
European Equity Fund Pacific Basin Equity Fund
-------------------- -------------------------
1995 1994 1995 1994
------- -------- ------- --------
<S> <C> <C> <C> <C>
Capital stock sold................................... 819,896 1,007,620 1,474,684 1,035,936
Capital stock issued in connection with reinvestment
of dividends and distributions.................... 26,294 52,871 49,320 30,311
Capital stock repurchased............................ (662,437) (434,472) (700,221) (372,672)
------- --------- --------- ---------
Net increase......................................... 183,753 626,019 823,783 693,575
======= ========= ========= =========
</TABLE>
<PAGE>
THE 59 WALL STREET EUROPEAN EQUITY FUND
THE 59 WALL STREET PACIFIC BASIN EQUITY FUND
NOTES TO FINANCIAL STATEMENTS (continued)
5. Financial Instruments with Off-Balance Sheet Risk. At October 31, 1995,
the European Equity Fund and 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 Funds bear the risk of an unfavorable
change in the foreign exchange rate underlying the forward contracts.
Forward foreign currency exchange contracts open at October 31 1995:
Unrealized
Contracts In Exchange Deliver (Depreciation)/
to deliver For Date Appreciation
---------- ----------- ------- -------------
European Equity Fund:
DM 170,000,000 $115,407,018 11/08/95 $(5,414,941)
============ ===========
Pacific Basin Equity Fund:
JPY 2,828,000,000 28,889,570 11/08/95 $ 1,208,568
============ ===========
6. Federal Income Tax Status. At October 31, 1995, the Pacific Basin Equity
Fund had a net capital loss carryover of approximately $6,178,137, available
through October 31, 2003 to offset future capital gains, to the extent provided
by regulations. To the extent that this net capital loss carryover is used to
offset future capital gains, it is probable that the gains so offset will not be
distributed to shareholders since any such distributions may be taxable to
shareholders as ordinary income.
The Corporation intends to elect on its European Equity Fund and Pacific
Basin Equity Fund to pass-through to shareholders foreign income taxes paid by
each Fund during the year ended October 31, 1995. Shareholders must include in
federal taxable income their pro-rata portion of foreign taxes paid by the Fund
and will be able to claim either an offsetting deduction or a tax credit on
their federal income tax return. The individual amount of the foreign tax credit
will be reported on Form 1099. For the year ended October 31, 1995, the European
Equity and Pacific Basin Equity Funds earned $3,379,301 and $1,840,689,
respectively, of dividend income from foreign countries and paid $461,794 and
$206,422, respectively, in taxes to those foreign countries.
<PAGE>
INDEPENDENT AUDITORS' REPORT
Board of Directors and Shareholders
The 59 Wall Street Fund, Inc.:
We have audited the accompanying statements of assets and liabilities,
including the portfolios of investments, of The 59 Wall Street European Equity
Fund and The 59 Wall Street Pacific Basin Equity Fund (portfolios of The 59 Wall
Street Fund, Inc.) as of October 31, 1995, the related statements of operations
for the year then ended, the statements of changes in net assets for the years
ended October 31, 1995 and 1994, and the financial highlights for each of the
years in the five-year period ended October 31, 1995. These financial statements
and financial highlights are the responsibility of the Fund's management. Our
responsibility is to express an opinion on these financial statements and
financial highlights based on our audits.
We conducted our audits in accordance with generally accepted auditing
standards. Those standards require that we plan and perform the audit to obtain
reasonable assurance about whether the financial statements and financial
highlights are free of material misstatement. An audit includes examining, on a
test basis, evidence supporting the amounts and disclosures in the financial
statements. Our procedures included confirmation of securities owned at October
31, 1995 by correspondence with the custodian and brokers; where replies were
not received from brokers, we performed other auditing procedures. An audit also
includes assessing the accounting principles used and significant estimates made
by management, as well as evaluating the overall financial statement
presentation. We believe that our audits provide a reasonable basis for our
opinion.
In our opinion, such financial statements and financial highlights present
fairly, in all material respects, the financial position of each of the
respective portfolios of The 59 Wall Street Fund, Inc. at October 31, 1995, the
results of their operations, the changes in their net assets, and their
financial highlights for the respective stated periods in conformity with
generally accepted accounting principles.
DELOITTE & TOUCHE LLP
Boston, Massachusetts
December 12, 1995
<PAGE>
MANAGEMENT'S DISCUSSION OF FUND PERFORMANCE
The following investment management strategies and techniques have
materially affected the Funds' performance for the fiscal year ended October 31,
1995.
European Equity Fund
In the year ended October 31, 1995, the European equity markets, as
measured by the MSCI-Europe Index, rose 13.2% in U.S. dollars. Most European
markets moved ahead this year, encouraged by lower interest rates and by strong
corporate earnings reports. Only France and Italy failed to advance during this
period, held back by fiscal concerns and political uncertainties. However, the
weakness of the U.S. dollar, particularly in the early months of 1995, enabled
even these laggard markets to record positive gains for the U.S. investor. The
European Equity Fund achieved a dollar-adjusted return of 9.42% over this
period. Since its inception five years ago, the European Equity Fund has
provided its investors with a compound annual return of 9.95%.
Over the course of the last year, the Fund's investment strategy has
continued to focus on those companies with visible earnings growth and those
which benefit from an elongated cycle of economic recovery. Encouraged by the
above average growth prospects offered by the Irish economy, the Fund moved to
an overweighted position, mainly funded by a reduction in British holdings.
Early in the new year, the Fund also re-established full exposure to Switzerland
and the Netherlands. Equity valuations in both markets had returned to more
attractive levels, particularly in sectors such as media and pharmaceuticals
where earnings growth remains quite visible. Throughout Europe, the Fund was
well positioned to benefit from the downward trend of interest rates this year.
[The following table was represented by a chart in the printed matter]
European Equity Fund
Growth of $10,000
Line graph with two axes: the X-axis represents years of operations; the Y-axis
represents dollar value. The graph plots two lines: the first line represents
the growth of a ten thousand dollar investment in the Fund from October 31, 1990
to October 31, 1995; the second line represents the growth of a ten thousand
dollar investment in a portfolio of securities reflecting the composition of the
MSCI-Europe Index for the same time period. The graph points are as follows:
Year Fund* MSCI-Europe Index
---- ----- -----------------
11/1/90 $10,000 $10,000
11/30/90 9,924 10,100
12/31/90 9,784 9,954
1/31/91 9,964 10,288
2/28/91 10,460 11,188
3/31/91 9,880 10,439
4/30/91 10,004 10,329
5/31/91 10,144 10,634
6/30/91 9,500 9,740
7/31/91 9,996 10,415
8/31/91 10,108 10,605
9/30/91 10,368 10,923
10/31/91 10,160 10,694
11/30/91 9,904 10,442
12/31/91 10,689 11,258
1/31/92 10,746 11,255
2/29/92 10,790 11,299
3/31/92 10,435 10,903
4/30/92 11,073 11,505
5/31/92 11,549 12,160
6/30/92 11,452 11,933
7/31/92 10,972 11,507
8/31/92 11,032 11,469
9/30/92 10,895 11,280
10/31/92 10,960 10,493
11/30/92 11,494 10,728
1/31/93 11,340 10,746
2/28/93 11,419 10,868
3/31/93 11,762 11,427
4/30/93 12,082 11,680
5/31/93 12,223 11,806
6/30/93 11,836 11,633
7/31/93 11,871 11,673
8/31/93 12,885 12,698
9/30/93 12,929 12,659
10/31/93 13,680 13,186
11/30/93 13,606 12,902
12/31/93 14,611 13,870
1/31/94 15,322 14,576
2/28/94 14,524 14,060
3/31/94 13,730 13,663
4/30/94 14,071 14,228
5/31/94 13,448 13,623
6/30/94 13,453 13,480
7/31/94 14,094 14,187
8/31/94 14,667 14,637
9/30/94 14,094 14,055
10/31/94 14,685 14,668
11/30/94 13,960 14,106
12/31/94 14,036 14,187
1/31/95 13,906 14,076
2/28/95 14,222 14,396
3/31/95 14,896 15,064
4/30/95 15,409 15,546
5/31/95 15,505 15,864
6/30/95 15,470 16,014
7/31/95 15,998 16,846
8/31/95 16,450 16,198
9/30/95 16,400 16,687
10/31/95 16,068 16,608
* net of fees and expenses
Past performance is not predictive of future performance.
<PAGE>
Pacific Basin Equity Fund
Equity markets in the Pacific Basin, as measured by the MSCI Pacific Index,
fell 11.2% over the course of the last year. Most markets in the region
declined. The Japanese equity market suffered both from insufficient evidence of
economic recovery and from the increasing revelations about the magnitude of the
financial system's bad debt crisis. Other Asian markets such as Singapore,
Malaysia, and Indonesia, which fell in 1994 as U.S. interest rates increased,
failed to rally when the U.S. Federal Reserve reversed its trend in 1995. The
only markets to record positive returns this year were New Zealand, Australia,
and Hong Kong. The latter's return, however, was virtually flat year on year as
the strong recovery in Hong Kong equities which began in February was
insufficient to fully recoup the losses which Hong Kong suffered in the
aftermath of the Mexican Peso crisis of December.
The Pacific Basin Equity Fund outperformed the MSCI Pacific Index over this
period, declining 10.62%. The outperformance was due, in part, to an increased
exposure to Hong Kong in February, and in part, to a significantly underweighted
position in Japan for much of the year. Over the period since its inception, the
Fund has achieved a compound annual return of 9.32%, well ahead of the MSCI
Pacific Index's return of 3.8%.
[The following table was represented by a chart in the printed matter]
Pacific Basin Equity Fund
Growth of $10,000
Line graph with two axes: the X-axis represents years of operations; the Y-axis
represents dollar value. The graph plots two lines: the first line represents
the growth of a ten thousand dollar investment in the Fund from October 31, 1990
to October 31, 1995; the second line represents the growth of a ten thousand
dollar investment in a portfolio of securities reflecting the composition of the
MSCI-Pacific Index for the same time period. The graph points are as follows:
Year Fund* MSCI-Pacific Index
---- ----- ------------------
11/1/90 $10,000 $10,000
11/30/90 9,368 8,891
12/31/90 9,580 9,270
1/31/91 9,940 9,559
2/28/91 10,820 10,737
3/31/91 10,912 10,151
4/30/91 11,312 10,412
5/31/91 11,308 10,372
6/30/91 11,008 9,694
7/31/91 11,296 10,021
8/31/91 10,656 9,513
9/30/91 10,936 10,262
10/31/91 11,068 10,698
11/30/91 10,612 10,010
12/31/91 10,886 10,317
1/31/92 11,095 9,918
2/29/92 10,927 9,223
3/31/92 10,457 8,346
4/30/92 10,776 7,964
5/31/92 11,487 8,585
6/30/92 11,013 7,910
7/31/92 10,326 7,800
8/31/92 11,140 8,869
9/30/92 10,760 8,665
10/31/92 11,254 8,360
11/30/92 11,393 8,518
12/31/92 11,556 8,420
1/31/93 11,437 8,404
2/28/93 11,899 8,812
3/31/93 12,377 9,877
4/30/93 13,288 11,450
5/31/93 13,915 11,783
6/30/93 13,470 11,590
7/31/93 13,584 12,275
8/31/93 14,469 12,638
9/30/93 14,787 12,166
10/31/93 16,883 12,436
11/30/93 16,744 10,681
12/31/93 20,211 11,425
1/31/94 19,470 12,748
2/28/94 18,493 13,077
3/31/94 16,892 12,355
4/30/94 17,103 12,889
5/31/94 17,239 13,196
6/30/94 16,656 13,628
7/31/94 17,261 13,335
8/31/94 17,831 13,567
9/30/94 17,524 13,227
10/31/94 17,471 13,562
11/30/94 16,086 12,805
12/31/94 15,866 12,891
1/31/95 14,293 12,076
2/28/95 14,576 11,777
3/31/95 15,124 12,681
4/30/95 15,067 13,220
5/31/95 15,704 12,691
6/30/95 15,464 12,153
7/31/95 16,201 13,030
8/31/95 15,893 12,538
9/30/95 15,992 12,655
10/31/95 15,616 12,040
* net of fees and expenses
Past performance is not predictive of future performance.
<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 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.
