[LOGO]
European Equity Fund
Pacific Basin Equity Fund
SEMI-ANNUAL REPORT
April 30, 1997
<PAGE>
THE 59 WALL STREET EUROPEAN EQUITY FUND
PORTFOLIO OF INVESTMENTS
April 30, 1997
(unaudited)
Shares Value
- ----------- ------------
COMMON STOCKS & WARRANTS (96.1%)
FRANCE (14.6%)
BANKING
50,000 Banque Nationale de Paris........................... $ 2,133,128
21,230 Societe Generale.................................... 2,378,895
------------
4,512,023
------------
CAPITAL EQUIPMENT
24,200 Alcatel Alsthom .................................... 2,690,962
------------
CONSUMER DURABLES
9,780 Peugeot SA.......................................... 973,559
------------
CONSUMER NON-DURABLES
3,500 Bongrain SA......................................... 1,325,281
7,420 LVMH................................................ 1,811,617
------------
3,136,898
------------
MEDIA & ADVERTISING
12,620 Canal Plus.......................................... 2,279,016
32,220 Havas SA............................................ 2,412,429
19,715 Television Francaise 1.............................. 1,901,747
------------
6,593,192
------------
RETAIL
4,058 Comptoirs Modernes.................................. 1,894,637
------------
SERVICES
18,125 Accor SA............................................ 2,599,267
------------
TOTAL FRANCE ....................................... 22,400,538
------------
GERMANY (16.4%)
BANKING
104,000 Commerzbank AG...................................... 2,789,468
57,890 Depfa Bank AG....................................... 3,148,884
------------
5,938,352
------------
CAPITAL EQUIPMENT
4,100 Linde AG............................................ 2,994,861
10,000 MAN AG.............................................. 2,881,395
49,400 Siemens AG.......................................... 2,675,667
------------
8,551,923
------------
ENERGY
43,400 VEBA AG ............................................ 2,235,408
------------
INSURANCE
16,000 Allianz AG.......................................... 3,104,285
------------
MULTI-INDUSTRY
120,247 Metallgesellschaft AG*.............................. 2,485,762
------------
PHARMACEUTICALS
36,170 Merck KGaA*......................................... 1,434,853
------------
RETAIL
14,380 Metro AG*........................................... 1,394,988
------------
TOTAL GERMANY ...................................... 25,145,571
------------
IRELAND (3.0%)
CONSUMER NON-DURABLES
106,000 Greencore Group, Plc................................ 540,979
1,500,000 Waterford Wedgewood, Plc............................ 1,958,871
------------
2,499,850
------------
PHARMACEUTICALS
62,000 Elan Corp., Plc., ADR*.............................. 2,108,000
------------
TOTAL IRELAND ...................................... 4,607,850
------------
ITALY (5.0%)
BANKING
278,000 Istituto Mobiliare
Italiano SpA (IMI)................................ 2,368,117
------------
ENERGY
489,000 Ente Nazionale
Idrocarbun SpA (ENI)*............................. 2,481,878
------------
RETAIL
10,322 Rinascente SpA (Warrants)*.......................... 5,094
------------
TELECOMMUNICATIONS
913,200 Telecom Italia Mobile SpA........................... 2,872,126
------------
TOTAL ITALY ........................................ 7,727,215
------------
<PAGE>
THE 59 WALL STREET EUROPEAN EQUITY FUND
PORTFOLIO OF INVESTMENTS
April 30, 1997 (continued)
(unaudited)
Shares Value
- ---------- -----------
NETHERLANDS (8.8%)
FINANCE
104,725 Fortis Amev NV...................................... $ 3,950,771
------------
MATERIALS
27,400 Akzo Nobel NV....................................... 3,529,949
------------
MEDIA & ADVERTISING
186,160 Elsevier NV......................................... 2,981,159
------------
TELECOMMUNICATIONS
86,800 Koninklijke PTT Nederland........................... 3,082,975
------------
TOTAL NETHERLANDS .................................. 13,544,854
------------
SPAIN (4.8%)
ENERGY
65,740 Repsol SA........................................... 2,756,309
------------
FINANCE
16,360 Argentaria SA....................................... 729,573
------------
MULTI-INDUSTRY
10,510 Corp Fin Alba....................................... 1,078,280
------------
UTILITIES
108,710 Telefonica De Espana................................ 2,784,576
------------
TOTAL SPAIN ........................................ 7,348,738
------------
SWEDEN (6.3%)
CAPITAL EQUIPMENT
78,000 Ericsson (LM)
Telephone Co., ADR................................ 2,465,869
----------
CONSUMER DURABLES
40,800 Electrolux AB (B free).............................. 2,340,434
------------
52,100 Volvo AB (B free)................................... 1,311,682
------------
3,652,116
------------
FINANCE
80,000 Skandia Forsakrings AB.............................. 2,314,939
------------
MULTI-INDUSTRY
27,410 Investor AB (B free)................................ 1,198,469
------------
TOTAL SWEDEN ....................................... 9,631,393
------------
SWITZERLAND (11.1%)
BANKING
31,000 Credit Suisse AG.................................... 3,490,944
------------
CONSUMER DURABLES
4,720 SMH AG.............................................. 2,673,631
------------
CONSUMER NON-DURABLES
2,630 Nestle AG*.......................................... 3,193,610
------------
INSURANCE
3,950 Winterthur Insurance................................ 2,835,018
------------
PHARMACEUTICALS
3,720 Novartis AG......................................... 4,900,780
------------
TOTAL SWITZERLAND .................................. 17,093,983
------------
TURKEY (2.7%)
BANKING
7,000,000 Akbank T.A.S........................................ 449,181
12,443,900 Akbank T.A.S.
(Non-Tradeable Receipts).......................... 531,789
------------
980,970
------------
CONSUMER DURABLES
9,000,000 Arcelik A.S......................................... 1,078,699
2,600,000 Otosan Otomobil Sanayii A.S......................... 1,208,143
------------
2,286,842
------------
MATERIALS
9,000,000 Turk Sise ve Cam
Fabrikalari A.S................................... 979,127
------------
TOTAL TURKEY ....................................... 4,246,939
------------
UNITED KINGDOM (23.4%)
BANKING
570,000 Bank of Scotland.................................... 3,408,914
124,000 Barclays, Plc....................................... 2,305,154
------------
5,714,068
------------
<PAGE>
THE 59 WALL STREET EUROPEAN EQUITY FUND
PORTFOLIO OF INVESTMENTS
April 30, 1997 (continued)
(unaudited)
Shares Value
- ----------- ------------
UNITED KINGDOM (CONTINUED) ENERGY
310,000 PowerGen, Plc....................................... $ 3,245,705
400,000 Energy Group, Plc.*................................. 3,176,661
------------
6,422,366
------------
MATERIALS
193,000 RTZ Corp., Plc...................................... 3,065,478
------------
MULTI-INDUSTRY
680,000 Inchcape, Plc....................................... 3,019,773
------------
PHARMACEUTICALS
130,000 Glaxo Wellcome, Plc................................. 2,555,754
------------
RETAIL
275,700 Marks & Spencer, Plc................................ 2,185,045
530,000 Safeway, Plc........................................ 2,937,763
540,000 Storehouse, Plc..................................... 1,934,198
129,000 Tesco, Plc.......................................... 748,493
------------
7,805,499
------------
SERVICES
210,000 Railtrack Group, Plc.*.............................. 1,584,360
220,000 Severn Co., Ltd..................................... 2,692,058
------------
4,276,418
------------
TELECOMMUNICATIONS
370,000 Carlton Communications, Plc......................... 3,034,360
------------
TOTAL UNITED KINGDOM ............................... 35,893,716
------------
TOTAL INVESTMENTS (identified cost
$129,748,610) (a) ................................ 96.1% $147,640,797
CASH AND OTHER ASSETS IN EXCESS OF LIABILITIES ....... 3.9 6,016,705
----- ------------
NET ASSETS ........................................... 100.0% $153,657,502
===== ============
- ------------------
* non-income producing security
(a) The aggregate cost for federal income tax purposes is $129,748,610, the
aggregate gross unrealized appreciation is $22,120,202 and the aggregate
gross unrealized depreciation is $4,228,015 resulting in net unrealized
appreciation of $17,892,187.
See Notes to Financial Statements.
<PAGE>
THE 59 WALL STREET EUROPEAN EQUITY FUND
STATEMENT OF ASSETS AND LIABILITIES
April 30, 1997
(unaudited)
ASSETS:
Investments in securities, at value (identified
cost $129,748,610) (Note 1) ....................... $ 147,640,797
Cash (including $3,287,500 in foreign currency) ....... 5,623,474
Receivables for:
Investments sold ................................... 3,754,395
Dividends .......................................... 616,345
Capital stock sold ................................. 259,500
Foreign tax reclaim ................................ 201,311
-------------
Total Assets ................................... 158,095,822
-------------
LIABILITIES:
Payables for:
Investments purchased .............................. 3,903,757
Capital stock redeemed ............................. 229,495
Foreign withholding taxes .......................... 87,418
Investment advisory fee (Note 2) ................... 81,223
Shareholder servicing/Eligible
institution fees (Note 2) ....................... 31,240
Administrative fee (Note 2) ........................ 18,744
Director's fee ..................................... 1,293
Accrued expenses and other liabilities ............. 85,150
-------------
Total Liabilities .............................. 4,438,320
-------------
NET ASSETS .................................................. $ 153,657,502
=============
Net Assets Consist of:
Paid-in capital ....................................... $ 127,704,411
Distribution in excess of net
investment income .................................. (36,490)
Accumulated net realized gain ......................... 8,194,790
Net unrealized appreciation ........................... 17,794,791
-------------
Net Assets .................................................. $ 153,657,502
=============
NET ASSET VALUE AND OFFERING PRICE PER SHARE
($153,657,502 / 4,485,513 shares) ...................... $ 34.26
=======
See Notes to Financial Statements.
<PAGE>
THE 59 WALL STREET EUROPEAN EQUITY FUND
STATEMENT OF OPERATIONS
For the six months ended April 30, 1997
(unaudited)
INVESTMENT INCOME:
Income:
Dividends (net of foreign withholding
tax of $176,722) .................................. $ 1,463,524
Interest .............................................. 25,989
-----------
Total Income ...................................... 1,489,513
-----------
Expenses:
Investment advisory fee (Note 2) ...................... 485,226
Shareholder servicing/Eligible
institution fees (Note 2) .......................... 186,734
Administrative fee (Note 2) ........................... 116,375
Custodian fee (Note 3) ................................ 75,444
Directors' fees and expenses (Note 2) ................. 7,799
Miscellaneous expenses ................................ 1,494
-----------
Total Expenses ........................................ 873,072
Fees paid indirectly (Note 3) ..................... (2,200)
-----------
Net Expenses ...................................... 870,872
-----------
Net Investment Income ............................. 618,641
-----------
NET REALIZED AND UNREALIZED GAIN (LOSS) (Notes 1 and 3):
Net realized gain on:
Investments ........................................... 6,599,960
Foreign exchange transactions ......................... 1,594,830
-----------
8,194,790
-----------
Net change in unrealized appreciation on:
Investments ........................................... (459,615)
Foreign currency translations ......................... (51,836)
-----------
(511,451)
-----------
Net Realized and Unrealized Gain .................. 7,683,339
-----------
Net Increase in Net Assets Resulting from Operations ..... $ 8,301,980
===========
See Notes to Financial Statements.
<PAGE>
THE 59 WALL STREET EUROPEAN EQUITY FUND
STATEMENT OF CHANGES IN NET ASSETS
For the For the
six months ended year ended
April 30, 1997 October 31,
(unaudited) 1996
-------------- -------------
INCREASE (DECREASE) IN NET ASSETS:
Operations:
Net investment income ..................... $ 618,641 $ 1,517,318
Net realized gain on investments
and foreign exchange
transactions ........................... 8,194,790 4,032,140
Net change in unrealized appreciation
on investments and foreign currency
translations ........................... (511,451) 12,375,805
------------- -------------
Net increase in net assets resulting
from operations ..................... 8,301,980 17,925,263
------------- -------------
Dividends and distributions declared (Note 1):
From net investment income ................ (1,711,429) --
From net realized gains ................... (9,446,042) (5,095,644)
------------- -------------
Total dividends and
distributions declared .............. (11,157,471) (5,095,644)
------------- -------------
Capital stock transactions (Note 4):
Net proceeds from sales of capital stock .. 16,569,626 29,772,327
Net asset value of capital stock
issued to shareholders in
reinvestment of distributions .......... 706,526 395,504
Net cost of capital stock redeemed ........ (7,113,182) (13,602,848)
------------- -------------
Net increase in net assets resulting
from capital stock transactions ..... 10,162,970 16,564,983
------------- -------------
Total increase in net assets ........ 7,307,479 29,394,602
NET ASSETS:
Beginning of period .......................... 146,350,023 116,955,421
------------- -------------
End of period (including distribution
in excess of net investment income
of $36,490 and undistributed net
investment income of $1,056,298) .......... $ 153,657,502 $ 146,350,023
============= =============
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
April 30, For the years ended October 31,
1997 --------------------------------------------------
(unaudited) 1996 1995 1994 1993 1992
--------- ----- ------ ------ ------ ------
<S> <C> <C> <C> <C> <C> <C>
Net asset value, beginning of year............ $35.02 $31.95 $31.82 $31.17 $27.15 $25.35
Income from investment operations:
Net investment income....................... 0.15 0.38(1) 0.45 0.39 0.21 0.29
Net realized and unrealized gain............ 1.77 4.08 2.09 1.80 6.09 1.74
Less dividends and distributions (Note 1):
From net investment income.................. (0.41) -- -- (0.25) (0.36) (0.23)
From net realized gains..................... (2.27) (1.39) (2.41) (1.29) (1.91) --
In excess of net realized gains............. -- -- -- -- (0.01) --
------ ------ ------ ------ ------ ------
Net asset value, end of period................ $34.26 $35.02 $31.95 $31.82 $31.17 $27.15
====== ====== ====== ====== ====== ======
Total return.................................. 5.68% 14.63% 9.42% 7.35% 24.82% 7.87%
Ratios/Supplemental Data:
Net assets, end of year (000's omitted)..... $153,658 $146,350 $116,955 $110,632 $88,860 $27,426
Expenses as a percentage of average
net assets:
Expenses paid by Fund..................... 1.17%(2) 1.23% 1.24% 1.37% 1.50% 1.50%
Expenses paid by commissions.............. 0.01%(3) 0.01%(3) 0.05%(3) n/a n/a n/a
Expense offset arrangement................ 0.05%(2) 0.09% 0.14% n/a n/a n/a
------ ------ ------ ------ ------ ------
Total expenses........................ 1.23%(2) 1.33% 1.43% 1.37% 1.50% 1.50%
Ratio of net investment income to
average net assets........................ 0.83%(2) 1.16% 1.55% 1.30% 1.28% 1.71%
Portfolio turnover rate..................... 36% 42% 72% 124% 37% 50%
Average commission rate paid per share(4).... $0.0060 $0.0212 $0.0216 -- -- --
</TABLE>
- -----------
(1) Calculated using average shares outstanding for the year.
(2) Annualized.
(3) 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.
(4) 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, 1997
(unaudited)
Shares Value
- ----------- -----------
COMMON STOCKS, RIGHTS
& WARRANTS (97.3%)
AUSTRALIA (6.3%)
ENERGY
281,000 Woodside Petroleum, Ltd. ............................ $ 2,235,202
-----------
GOLD MINES
344,000 RGC, Ltd. ........................................... 1,247,446
-----------
MATERIALS
110,693 CRA, Ltd.* .......................................... 1,650,511
233,000 WMC, Ltd. ........................................... 1,380,956
-----------
3,031,467
-----------
MULTI-INDUSTRY
775,000 Pacific Dunlop, Ltd.................................. 2,091,164
-----------
TOTAL AUSTRALIA ..................................... 8,605,279
-----------
HONG KONG (8.7%)
BANKING
254,172 Dao Heng Bank Group, Ltd............................. 1,207,452
-----------
INSURANCE
1,114,000 National Mutual Asia, Ltd............................ 1,150,455
-----------
MATERIALS
2,800,000 C.P. Pokphand Co. ................................... 876,525
-----------
MULTI-INDUSTRY
206,000 Guoco Group Ltd...................................... 978,610
162,000 Hutchison Whompoa, Ltd. ............................. 1,202,479
151,000 Jardine Matheson Hldgs., Ltd. 830,500
122,500 Swire Pacific, Ltd. ................................. 944,862
-----------
3,956,451
-----------
REAL ESTATE
142,000 Cheung Kong Hldgs., Ltd.............................. 1,246,498
224,000 New World Develpoment
Co., Ltd. ......................................... 1,292,558
105,500 Sun Hung Kai Properties, Ltd. 1,144,001
-----------
3,683,057
-----------
TELECOMMUNICATIONS
515,800 Hong Kong
Telecommunications, Ltd............................ 885,579
-----------
TOTAL HONG KONG ..................................... 11,759,519
-----------
INDIA (7.7%)
CONSUMER DURABLES
157,000 Ashok Leyland, Ltd................................... 1,157,875
44,000 Bajaj Auto, Ltd...................................... 1,452,000
-----------
2,609,875
-----------
FINANCE
134,000 Industrial Credit & Investment
Corp. of India, Ltd................................ 1,457,250
-----------
MATERIALS
98,000 Grasim Industries, Ltd............................... 1,078,000
861,000 Indo Gulf Fertilisers and
Chemicals Corp., Ltd............................... 774,900
136,000 Reliance Industries, Ltd............................. 2,703,000
247,000 Southern Petrochemicals
Industries Corp., Ltd.............................. 771,875
-----------
5,327,775
-----------
PHARMACEUTICALS
46,000 Ranbaxy Laboratories, Ltd............................ 1,138,500
-----------
TOTAL INDIA ......................................... 10,533,400
-----------
INDONESIA (3.1%)
BANKING
308,000 Bank Bali............................................ 741,481
1,484,219 Bank Dagang Nasional................................. 1,481,165
212,031 Bank Dagang Nasional
(Warrants)* ...................................... 74,167
-----------
2,296,813
-----------
MATERIALS
286,000 Semen Cibinong....................................... 844,465
-----------
PHARMACEUTICALS
600,000 Kalbe Farma.......................................... 592,593
-----------
SERVICES
580,000 Citra Marga Nusaphala
Persada ........................................... 507,202
-----------
TOTAL INDONESIA ..................................... 4,241,073
-----------
JAPAN (60.0%)
BANKING
301,000 Asahi Bank, Ltd. .................................... 1,842,494
490,000 Daiwa Bank, Ltd...................................... 1,582,700
405,000 Long Term Credit Bank
of Japan .......................................... 1,087,998
300,000 Mitsui Trust and
Banking Co., Ltd................................... 1,711,112
340,000 Sakura Bank, Ltd. ................................... 1,797,298
<PAGE>
THE 59 WALL STREET PACIFIC BASIN EQUITY FUND
PORTFOLIO OF INVESTMENTS
April 30, 1997 (continued)
(unaudited)
Shares Value
- ----------- -----------
JAPAN (continued)
265,000 Sumitomo Trust and
Banking Co., Ltd. ................................. $ 2,192,067
-----------
10,213,669
-----------
CAPITAL EQUIPMENT
371,000 Ishikawajima Harina Heavy
Industries Co., Ltd................................ 1,382,463
273,000 JGC Corp. ........................................... 1,408,713
100 Kandenko ............................................ 776
81,500 Kurita Water Industries, Ltd. 1,720,723
55,000 Tostem Corp.......................................... 1,291,212
-----------
5,803,887
-----------
CONSUMER ELECTRONICS
79,000 Canon, Inc. ......................................... 1,873,321
89,000 Canon Sales Co., Inc................................. 1,844,015
2,840 Canon Sales Co., Inc.
(Warrants)* ....................................... 275,504
124,000 Sharp Corp........................................... 1,611,849
32,000 Sony Corp. .......................................... 2,329,381
-----------
7,934,070
-----------
CONSUMER NON-DURABLES
60,000 Fuji Photo Film Co................................... 2,292,512
29,000 Nintendo Co., Ltd.................................... 2,104,148
47,200 Sony Music Entertainment
(Japan), Inc....................................... 1,621,239
-----------
6,017,899
-----------
ELECTRIC COMPONENTS
79,000 Denki Kogyo Co., Ltd................................. 537,724
30,500 Kyocera Corp. ....................................... 1,826,131
275 Kyocera Corp. (Warrants)*............................ 216,562
31,300 Mabuchi Motor Co., Ltd............................... 1,585,528
97,000 Matsushita Communications
Industrial Co., Ltd................................ 2,506,480
208,000 Minebea Co., Ltd..................................... 1,736,952
67,000 Murata Mfg. Co., Ltd. ............................... 2,470,241
153,000 NGK Spark Plug Co.................................... 1,530,783
610 NGK Spark Plug Co.
(Warrants)*........................................ 320,250
30,000 Rohm Co.............................................. 2,287,785
29,000 TDK Corp............................................. 2,090,440
-----------
17,108,876
-----------
FINANCE
50,000 Orix Corp. .......................................... 2,524,914
287,000 Yamaichi Securities Co., Ltd. ....................... 750,652
-----------
3,275,566
-----------
INDUSTRIAL ELECTRONICS
200,000 Hitachi, Ltd. ....................................... 1,811,951
-----------
INSURANCE
251,000 Yasuda Fire & Marine
Insurance Co. ..................................... 1,162,705
-----------
MATERIALS
96,000 Bridgestone Corp..................................... 2,041,990
528,000 Kawasaki Steel Corp.................................. 1,559,853
409,000 Mitsui Petrochemical Industries ..................... 1,923,607
120,000 Sumitomo Electric
Industries, Ltd. .................................. 1,626,029
178,000 Tokyo Steel Manufacturing............................ 1,907,118
-----------
9,058,597
-----------
MULTI-INDUSTRY
636,000 Prospect Japan Fund, Ltd.*........................... 3,421,680
205,000 Sumitomo Corp........................................ 1,379,210
-----------
4,800,890
-----------
PHARMACEUTICALS
85,000 Taisho Pharmaceutical................................ 2,102,651
99,000 Yamanouchi Pharmaceutical
Co., Ltd........................................... 2,113,601
-----------
4,216,252
-----------
RETAIL
28,300 Autobacs Seven Co., Ltd.............................. 1,883,917
35,000 Ito-Yokado Co., Ltd.................................. 1,679,206
39,500 Kato Denki Co., Ltd.................................. 304,959
340,000 Mitsukoshi, Ltd...................................... 1,888,368
-----------
5,756,450
-----------
SERVICES
872,000 Kawasaki Kisen Kaisha, Ltd.*. ....................... 1,511,325
24,000 Secom Co., Ltd. ..................................... 1,427,502
-----------
2,938,827
-----------
TELECOMMUNICATIONS
98 Japan Telecom Co., Ltd............................... 1,598,141
-----------
4,642,345
-----------
TOTAL JAPAN ......................................... 81,697,780
-----------
<PAGE>
THE 59 WALL STREET PACIFIC BASIN EQUITY FUND
PORTFOLIO OF INVESTMENTS
April 30, 1997 (continued)
(unaudited)
Shares Value
- ----------- -----------
MALAYSIA (5.6%)
BANKING
76,666 Commerce Asset Hldgs.,
Bhd. (Rights)...................................... $ 303,818
-----------
FINANCE
1,122,000 Public Finance, Bhd.................................. 1,715,979
-----------
MULTI-INDUSTRY
1,082,000 Renong, Bhd. ........................................ 1,482,428
-----------
REAL ESTATE
1,592,250 Bolton Properties, Bhd............................... 2,523,959
650,000 IOI Properties Bhd................................... 1,553,290
-----------
4,077,249
-----------
TOTAL MALAYSIA ...................................... 7,579,474
-----------
PAKISTAN (0.0%)
TEXTILES
62 Crescent Textile Mills* ............................. 27
-----------
SOUTH KOREA (5.9%)
ENERGY
11,000 Korea Electric Power Corp............................ 328,027
-----------
MULTI-INDUSTRY
659,000 CITC Seoul Access Trust*............................. 7,647,708
-----------
TOTAL SOUTH KOREA ................................... 7,975,735
-----------
TOTAL INVESTMENTS (identified cost
$147,618,682) (a) .................................. 97.3% $132,392,287
CASH AND OTHER ASSETS IN EXCESS OF LIABILITIES ........ 2.7 3,687,285
---- ------------
NET ASSETS ............................................ 100.0% $136,079,572
===== ============
- ----------------
* non-income producing security.
(a) The aggregate cost for federal income tax purposes is $147,618,682, the net
aggregate gross unrealized appreciation is $10,615,734 and the aggregate
gross unrealized depreciation is $25,842,129, resulting in net unrealized
depreciation of $15,226,395.
See Notes to Financial Statements.
<PAGE>
THE 59 WALL STREET PACIFIC BASIN EQUITY FUND
STATEMENT OF ASSETS AND LIABILITIES
April 30, 1997
(unaudited)
ASSETS:
Investments in securities, at value
(identified cost $147,618,682) (Note 1) ............ $ 132,392,287
Cash (including $3,287,500 in foreign currency) ....... 2,920,662
Receivables for:
Investments sold ................................... 1,016,246
Dividends .......................................... 395,466
Capital stock sold ................................. 236,200
-------------
Total Assets ................................... 136,960,861
-------------
LIABILITIES:
Payables for:
Capital stock redeemed ............................. 616,134
Foreign withholding taxes .......................... 55,970
Investment advisory fee (Note 2) ................... 71,718
Shareholder servicing/Eligible
institution fees (Note 2) ....................... 27,584
Administrative fee (Note2) ......................... 16,551
Director's fees (Note 2) ........................... 3,973
Accrued expenses and other liabilities ............. 89,359
-------------
Total Liabilities .............................. 881,289
-------------
NET ASSETS ................................................. $ 136,079,572
=============
Net Assets Consist of:
Paid-in capital ....................................... $ 157,158,410
Distributions in excess of net
investment income .................................. (1,576,386)
Accumulated net realized loss ......................... (4,269,955)
Net unrealized depreciation ........................... (15,232,497)
-------------
Net Assets .................................................. $ 136,079,572
=============
NET ASSET VALUE AND OFFERING PRICE PER SHARE
($136,079,572 / 5,061,466 shares) ....................... $ 26.89
=======
See Notes to Financial Statements.
<PAGE>
THE 59 WALL STREET PACIFIC BASIN EQUITY FUND
STATEMENT OF OPERATIONS
For the six months ended April 30, 1997
(unaudited)
INVESTMENT INCOME:
Income:
Dividends (net of foreign withholding
taxes of $120,925) .............................. $ 761,240
------------
Expenses:
Investment advisory fee (Note 2) .................... 468,143
Shareholder servicing/Eligible
institution fees (Note 2) ......................... 180,401
Administrative fee (Note 2) ......................... 108,019
Custodian fee (Note 3) .............................. 58,273
Directors' fees and expenses (Note 2) ............... 7,847
Miscellaneous expenses .............................. 35,014
------------
Total Expenses ...................................... 857,697
------------
Net Investment Loss ............................. (96,457)
------------
NET REALIZED AND UNREALIZED GAIN (LOSS) (Notes 1 and 3):
Net realized gain (loss) on:
Investments ......................................... 1,322,550
Foreign exchange transactions ....................... (3,326,077)
------------
(2,003,527)
------------
Net change in unrealized depreciation on:
Investments ......................................... (7,804,128)
Foreign currency translations ....................... (2,260,142)
------------
(10,064,270)
------------
Net Realized and Unrealized Loss ................ (12,067,797)
------------
Net Decrease in Net Assets Resulting
from Operations .................................... $(12,164,254)
============
See Notes to Financial Statements.
<PAGE>
THE 59 WALL STREET PACIFIC BASIN EQUITY FUND
STATEMENT OF CHANGES IN NET ASSETS
For the For the
six months ended year ended
April 30, 1997 October 31,
(unaudited) 1996
-------------- -------------
INCREASE (DECREASE) IN NET ASSETS:
Operations:
Net investment income (loss) .............. $ (96,457) $ 230,174
Net realized gain (loss) on investments
and foreign exchange transactions ....... (2,003,527) 9,167,924
Net change in unrealized depreciation
on investments and foreign currency
translations ............................ (10,064,270) (4,226,866)
------------- -------------
Net increase (decrease) in net assets
resulting from operations ............. (12,164,254) 5,171,232
------------- -------------
Dividends and distributions declared (Note 1):
From net investment income ................ (1,234,741) (3,266,119)
From net realized gains ................... (3,659,655) (1,873,146)
------------- -------------
Total dividends and
distributions declared ............... (4,894,396) (5,139,265)
------------- -------------
Capital stock transactions (Note 4):
Net proceeds from sales of capital stock .. 20,116,530 47,402,385
Net asset value of capital stock issued
to shareholders in reinvestment of
distributions ........................... 271,832 1,695,330
Net cost of capital stock redeemed ........ (17,935,087) (13,376,946)
------------- -------------
Net increase in net assets resulting
from capital stock transactions ....... 2,453,275 35,720,769
------------- -------------
Total increase (decrease)
in net assets....................... (14,605,375) 35,752,736
NET ASSETS:
Beginning of period .......................... 150,684,947 114,932,211
------------- -------------
End of period (including distribution
in excess of net investment income
of $1,576,386 and $245,188,
respectively) ............................. $ 136,079,572 $ 150,684,947
============= =============
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
April 30, For the years ended October 31,
1997 --------------------------------------------------
(unaudited) 1996 1995 1994 1993 1992
--------- ------ ------ ------ ------ ------
<S> <C> <C> <C> <C> <C> <C>
Net asset value, beginning of period.......... $30.19 $29.88 $39.85 $39.87 $27.53 $27.65
Income from investment operations:
Net investment income (loss)................ (0.01) 0.05(1) 0.11 0.14 0.14 0.12
Net realized and unrealized gain (loss)..... (2.31) 1.62 (4.50) 1.26 13.18 0.33
Less dividends and distributions (Note 1):
From net investment income.................. (0.25) (0.86) (0.00)(5) (0.14) (0.02) (0.18)
In excess of net investment income.......... (0.73) (0.50) -- -- -- --
From net realized gains..................... -- -- (5.58) (1.28) (0.96) (0.39)
------ ------ ------ ------ ------ ------
Net asset value, end of period................ $26.89 $30.19 $29.88 $39.85 $39.87 $27.53
====== ====== ====== ====== ====== ======
Total return.................................. (7.92)% 5.65% (10.62)% 3.48% 50.02% 1.68%
Ratios/Supplemental Data:
Net assets, end of period (000's omitted)... $136,080 $150,685 $114,932 $120,469 $92,863 $31,250
Expenses as a percentage of average
net assets:
Expenses paid by Fund..................... 1.19%(2) 1.13% 1.24% 1.29% 1.50% 1.50%
Expenses paid by commissions.............. -- 0.01%(3) 0.05%(3) n/a n/a n/a
Expense offset arrangement................ 0.11%(2) 0.16% 0.14% n/a n/a n/a
------ ------ ------ ------ ------ ------
Total expenses........................ 1.30%(2) 1.30% 1.43% 1.29% 1.50% 1.50%
Ratio of net investment income to
average net assets........................ 0.13%(2) 1.16% 0.53% 0.39% 0.62% 0.43%
Portfolio turnover rate..................... 29% 58% 82% 86% 79% 84%
Average commission rate paid per share(4)... $0.0200 $0.0149 $0.0092 -- -- --
</TABLE>
- ----------------
(1) Calculated using average shares.
(2) Annualized.
(3) 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.
(4) 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.
(5) Less than .01%.
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.
Each Fund's financial statements are prepared in accordance with generally
accepted accounting principles which require management to make certain
estimates and assumptions at the date of the financial statements and are based,
in part, on the following accounting policies. Actual results could differ from
those estimates.
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.
<PAGE>
THE 59 WALL STREET EUROPEAN EQUITY FUND
THE 59 WALL STREET PACIFIC BASIN EQUITY FUND
NOTES TO FINANCIAL STATEMENTS (continued)
(unaudited)
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
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. 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 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
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. Permanent
differences are reclassified on the statement of assets and liabilities
based upon their tax classification. 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, 1997, the European Equity Fund and the Pacific Basin
Equity Fund incurred $485,226 and $468,143, 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, 1997, the
European Equity Fund and the Pacific Basin Equity Fund incurred $111,975 and
$108,019, 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, 1997, the European Equity Fund and the Pacific Basin Equity Fund incurred
$186,734 and $180,401, 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, 1997, the European Equity Fund and the Pacific Basin
Equity Fund incurred $7,799 and $7,847, respectively, for these fees.
3. Investment Transactions. For the six months ended April 30, 1997, 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................................... $53,702,335 $42,074,012
Sales....................................... $58,234,231 $39,577,079
There were no purchases or sales of U.S. government obligations during the
year. Custody fees for the European Equity Fund were reduced by $2,200 as a
result of the 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 reduced by $41,210 and $81,192,
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 For the For the For the
six months ended year ended six months ended year ended
April 30, 1997 October 31, 1996 April 30, 1997 October 31, 1996
------------- ------------- ------------- ------------
<S> <C> <C> <C> <C>
Capital stock sold....................... 492,164 922,565 703,452 1,517,549
Capital stock issued in connection with
reinvestment of dividends and
distributions......................... 21,179 13,010 9,451 56,871
Capital stock repurchased................ (206,975) (417,199) (642,293) (430,114)
------- ------- ------- -------
Net increase............................. 306,368 518,376 70,610 1,144,306
======= ======= ======= =======
</TABLE>
<PAGE>
The 59 Wall Street Fund, Inc.
Investment Adviser and
Administrator
Brown Brothers Harriman & Co.
59 Wall Street
New York, New York 10005
Distributor
59 Wall Street Distributors, Inc.
6 St. James Avenue
Boston, Massachusetts 02116
Shareholder Servicing Agent
Brown Brothers Harriman & Co.
59 Wall Street
New York, New York 10005
(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.
