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European Equity Fund
Pacific Basin Equity Fund
ANNUAL REPORT
October 31, 1996
<PAGE>
THE 59 WALL STREET EUROPEAN EQUITY FUND
PORTFOLIO OF INVESTMENTS
October 31, 1996
Shares Value
------- -----------
COMMON STOCKS & WARRANTS (95.5%)
FRANCE (11.4%)
CAPITAL EQUIPMENT
17,500 Alcatel Alsthom .............................. $ 1,492,421
-----------
CONSUMER DURABLES
9,780 Peugeot SA ................................... 1,019,607
-----------
CONSUMER NON-DURABLES
3,500 Bongrain SA .................................. 1,417,115
6,020 LVMH ......................................... 1,378,860
-----------
2,795,975
-----------
FINANCE
15,430 Societe Generale ............................. 1,662,969
-----------
MEDIA & ADVERTISING
6,520 Canal Plus ................................... 1,614,537
17,220 Havas SA ..................................... 1,131,047
14,745 Television Francaise 1 ....................... 1,568,954
-----------
4,314,538
-----------
RETAIL
4,058 Comptoirs Modernes ........................... 1,941,490
-----------
SERVICES
11,715 Accor SA ..................................... 1,471,106
4,140 Sodexho SA ................................... 2,000,966
-----------
3,472,072
-----------
TOTAL FRANCE ................................. 16,699,072
-----------
GERMANY (5.6%)
BANKING
60,300 Commerzbank AG ............................... 1,349,822
32,890 Depfa Bank AG ................................ 1,350,870
-----------
2,700,692
-----------
CAPITAL EQUIPMENT
23,400 Siemens AG ................................... 1,209,093
-----------
ENERGY
29,400 VEBA AG ...................................... 1,568,039
-----------
MULTI-INDUSTRY
12,247 Metallgesellschaft AG* ....................... 225,386
-----------
PHARMACEUTICALS
36,170 Merck KGaA* .................................. 1,328,431
-----------
RETAIL
14,380 Metro AG* .................................... 1,179,342
-----------
TOTAL GERMANY ................................ 8,210,983
-----------
IRELAND (5.6%)
BANKING
270,700 Irish Permanent, Plc ............................ 2,058,572
-----------
CONSUMER NON-DURABLES
296,000 Greencore Group, Plc ............................ 1,725,582
-----------
MATERIALS
595,000 Smurfit (Jefferson) Group, Plc .................. 1,647,126
-----------
MEDIA & ADVERTISING
271,666 Independent Newspapers, Plc ..................... 1,448,797
-----------
PHARMACEUTICALS
45,300 Elan Corp., Plc., ADR* .......................... 1,257,075
-----------
TOTAL IRELAND ................................... 8,137,152
-----------
ITALY (8.4%)
BANKING
152,000 Istituto Mobiliare
Italiano SpA (IMI) ............................ 1,202,874
-----------
CONSUMER DURABLES
300,000 Ente Nazionale
Idrocarbun SpA (ENI)* ......................... 1,436,717
398,000 Fiat SpA ........................................ 1,063,869
-----------
2,500,586
-----------
INSURANCE
49,967 Assicurazioni Generali SpA ...................... 965,084
240,140 Assicurazione Industriale
SAI SpA ....................................... 750,339
820,400 Istituto Nazionale
Delle Assicurazioni SpA ....................... 1,132,985
-----------
2,848,408
-----------
MEDIA
170,000 Mondadori (Arnoldo)
Editore SpA ................................... 1,255,109
-----------
RETAIL
206,450 Rinascente SpA .................................. 1,220,736
10,322 Rinascente SpA (Warrants)* ...................... 4,423
-----------
1,225,159
-----------
<PAGE>
THE 59 WALL STREET EUROPEAN EQUITY FUND
PORTFOLIO OF INVESTMENTS
October 31, 1996 (continued)
Shares Value
- ------- -----------
ITALY (continued)
TELECOMMUNICATIONS
713,200 Telecom Italia Mobile SpA ....................... $ 1,473,884
814,200 Telecom Italia SpA .............................. 1,814,104
-----------
3,287,988
-----------
TOTAL ITALY ..................................... 12,320,124
-----------
NETHERLANDS (6.3%)
FINANCE
104,725 Fortis Amev NV ................................... 3,129,344
----------
MATERIALS
24,400 Akzo Nobel NV .................................... 3,074,627
----------
MEDIA & ADVERTISING
186,160 Elsevier NV ...................................... 3,094,072
----------
TOTAL NETHERLANDS ................................ 9,298,043
----------
SPAIN (3.5%)
CONSUMER NON-DURABLES
17,740 Tabacalera SA .................................... 649,287
41,200 Viscofan Envolturas SA ........................... 587,672
----------
1,236,959
----------
ENERGY
16,740 Repsol SA ........................................ 546,433
----------
FINANCE
16,360 Argentaria SA .................................... 641,091
----------
MULTI-INDUSTRY
10,510 Corp Fin Alba .................................... 889,596
----------
SERVICES
68,430 Autopistas Cesa SA (Acesa) ....................... 785,689
----------
UTILITIES
47,710 Telefonica de Espana ............................. 957,229
----------
TOTAL SPAIN ...................................... 5,056,997
----------
SWEDEN (4.3%)
CAPITAL EQUIPMENT
7,280 ABB AB (B free) .................................. 811,509
43,980 Atlas Copco AB (A free) .......................... 909,603
35,000 Ericsson (LM)
Telephone Co., ADR ............................. 947,428
----------
2,668,540
----------
CONSUMER DURABLES
16,500 Electrolux AB (B free) ........................... 918,381
37,000 Swedish Match AB* ................................ 110,285
37,000 Volvo AB (B free) ................................ 768,055
----------
1,796,721
----------
MATERIALS
19,580 Mo och Domsjo AB (B free) ........................ 538,951
46,850 Munksjo AB ....................................... 463,107
----------
1,002,058
----------
MULTI-INDUSTRY
19,310 Investor AB (B free) ............................. 778,191
19,310 Scania AB (Warrants)* ............................ 18,207
----------
796,398
----------
TOTAL SWEDEN ..................................... 6,263,717
----------
SWITZERLAND (10.6%)
BANKING
31,000 CS Holding AG (Bearer)* ......................... 3,096,321
-----------
CONSUMER DURABLES
4,720 SMH AG (Bearer) ................................. 2,893,987
-----------
CONSUMER NON-DURABLES
2,630 Nestle AG (Registered)* ......................... 2,856,796
-----------
INSURANCE
3,950 Winterthur Insurance ............................ 2,353,125
-----------
MATERIALS
1,800 Ciba-Geigy AG ................................... 2,207,278
-----------
PHARMACEUTICALS
1,800 Sandoz AG (Registered) .......................... 2,084,810
-----------
TOTAL SWITZERLAND ............................... 15,492,317
-----------
UNITED KINGDOM (39.8%)
BANKING
940,600 Bank of Scotland ................................ 4,317,207
-----------
CONSUMER NON-DURABLES
350,000 Reckitt & Colman, Plc ........................... 4,055,990
-----------
ENERGY
420,000 PowerGen, Plc ................................... 3,486,328
-----------
<PAGE>
THE 59 WALL STREET EUROPEAN EQUITY FUND
PORTFOLIO OF INVESTMENTS
October 31, 1996 (continued)
Shares Value
------- -----------
UNITED KINGDOM (continued)
MATERIALS
221,300 RTZ Corp., Plc ................................. $ 3,540,656
543,200 Redland, Plc ................................... 3,713,281
-----------
7,253,937
-----------
MULTI-INDUSTRY
688,680 BTR, Plc ....................................... 2,886,313
604,000 Grand Metropolitan, Plc ........................ 4,556,543
727,500 Inchcape, Plc .................................. 3,398,315
-----------
10,841,171
-----------
PHARMACEUTICALS
248,100 Glaxo Wellcome, Plc ............................ 3,896,753
-----------
RETAIL
275,700 Marks & Spencer, Plc ........................... 2,315,449
669,272 Safeway, Plc ................................... 3,970,535
779,100 Tesco, Plc ..................................... 4,222,661
-----------
10,508,645
-----------
SERVICES
648,000 Ladbroke Group, Plc ............................ 2,104,102
1,517,647 TC Group, Plc .................................. 3,532,284
-----------
5,636,386
-----------
TELECOMMUNICATIONS
500,200 Carlton Communications, Plc ................... 4,009,578
1,092,000 Vodafone Group, Plc ........................... 4,221,191
------------
8,230,769
------------
TOTAL UNITED KINGDOM .......................... $ 58,227,186
------------
TOTAL COMMON STOCKS
& WARRANTS
(identified cost $121,514,224) ................ $139,705,591
------------
Principal
Amount
---------
TIME DEPOSITS (3.3%)
State Street Bank (London)
2.85%, 11/1/96
(identified cost $4,936,484) .................. $ 4,936,484
------------
TOTAL INVESTMENTS (identified cost) (a) .............. 98.8% 144,642,075
CASH AND OTHER ASSETS IN EXCESS OF LIABILITIES ....... 1.2 1,707,948
----- ------------
NET ASSETS ........................................... 100.0% $146,350,023
===== ============
- -----------------------
* non-income producing security
(a) The aggregate cost for federal income tax purposes is $126,450,708, the
aggregate gross unrealized appreciation is $22,927,861 and the aggregate
gross unrealized depreciation is $4,736,494 resulting in net unrealized
appreciation of $18,191,367.
See Notes to Financial Statements.
<PAGE>
THE 59 WALL STREET EUROPEAN EQUITY FUND
STATEMENT OF ASSETS AND LIABILITIES
October 31, 1996
<TABLE>
<CAPTION>
<S> <C>
ASSETS:
Investments in securities, at value (identified cost $126,450,708) (Note 1) ........... $144,642,075
Cash (including $5,179,981 in foreign currency)........................................ 6,087,452
Receivables for:
Dividends and interest.............................................................. 399,690
Foreign tax reclaim................................................................. 221,087
Capital stock sold.................................................................. 1,874
------------
Total Assets ................................................................... 151,352,178
------------
LIABILITIES:
Payables for:
Investments purchased............................................................... 4,572,263
Investment advisory fee (Note 2) ................................................... 153,425
Shareholder servicing/Eligible institution fees (Note 2)............................ 59,010
Foreign withholding taxes........................................................... 42,264
Administrative fee (Note 2)......................................................... 35,406
Capital stock redeemed.............................................................. 15,454
Accrued expenses and other liabilities.............................................. 124,333
------------
Total Liabilities .............................................................. 5,002,155
------------
NET ASSETS ............................................................................... $146,350,023
============
Net Assets Consist of:
Paid-in capital........................................................................ $117,541,441
Accumulated undistributed net investment income........................................ 1,056,298
Accumulated net realized gain.......................................................... 9,446,043
Net unrealized appreciation............................................................ 18,306,241
------------
Net Assets .................................................................................. $146,350,023
============
NET ASSET VALUE AND OFFERING PRICE PER SHARE
($146,350,023 / 4,179,145 shares) ...................................................... $35.02
======
</TABLE>
See Notes to Financial Statements.
<PAGE>
THE 59 WALL STREET EUROPEAN EQUITY FUND
STATEMENT OF OPERATIONS
FOR THE YEAR ENDED OCTOBER 31, 1996
INVESTMENT INCOME:
INCOME:
Dividends (net of foreign withholding tax of $480,840).... 3,046,386
Interest.................................................. 80,261
---------
Total Income ......................................... 3,126,647
---------
EXPENSES:
Investment advisory fee (Note 2).......................... 847,451
Shareholder servicing/Eligible institution fees (Note 2).. 325,943
Custodian fee (Note 3).................................... 323,978
Administrative fee (Note 2)............................... 195,566
Directors' fees and expenses (Note 2)..................... 10,080
Miscellaneous expenses.................................... 32,660
---------
Total Expenses ........................................... 1,735,678
Fees paid indirectly (Note 3)......................... (126,349)
---------
Net Expenses ......................................... 1,609,329
---------
Net Investment Income ................................ 1,517,318
---------
NET REALIZED AND UNREALIZED GAIN (LOSS) (Notes 1 and 3):
Net realized gain (loss) on:
Investments............................................... 8,684,186
Foreign exchange transactions ............................ (4,652,046)
-----------
4,032,140
-----------
Net change in unrealized appreciation/depreciation on:
Investments............................................... 6,865,160
Foreign currency translations............................. 5,510,645
-----------
12,375,805
-----------
Net Realized and Unrealized Gain ..................... 16,407,945
-----------
Net Increase in Net Assets Resulting from Operations ........ $17,925,263
===========
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,
-------------------------------
1996 1995
----------- ------------
<S> <C> <C>
INCREASE IN NET ASSETS:
Operations:
Net investment income ...................................... $ 1,517,318 $ 1,709,242
Net realized gain on investments and foreign exchange
transactions ............................................ 4,032,140 8,772,423
Net change in unrealized appreciation on investments
and foreign currency translations ....................... 12,375,805 (1,037,893)
------------- -------------
Net increase in net assets resulting from operations .... 17,925,263 9,443,772
------------- -------------
Distributions declared from net realized gains (Note 1) ....... (5,095,644) (8,414,966)
------------- -------------
Capital stock transactions (Note 4):
Net proceeds from sales of capital stock ................... 29,772,327 24,158,027
Net asset value of capital stock issued to shareholders in
reinvestment of dividends and distributions ............. 395,504 706,260
Net cost of capital stock redeemed ......................... (13,602,848) (19,569,245)
------------- -------------
Net increase in net assets resulting from capital stock
transactions ......................................... 16,564,983 5,295,042
------------- -------------
Total increase in net assets ......................... 29,394,602 6,323,848
NET ASSETS:
Beginning of year ............................................. 116,955,421 110,631,573
------------- -------------
End of Year (including accumulated undistributed net investment
income of $1,056,298 and $4,904,283, respectively) ......... $ 146,350,023 $ 116,955,421
============= =============
</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,
------------------------------------------------------------
1996 1995 1994 1993 1992
----- ----- ------ ----- ------
<S> <C> <C> <C> <C> <C>
Net asset value, beginning of year............ $31.95 $31.82 $31.17 $27.15 $25.35
Income from investment operations:
Net investment income....................... 0.38+ 0.45 0.39 0.21 0.29
Net realized and unrealized gain............ 4.08 2.09 1.80 6.09 1.74
Less dividends and distributions (Note 1):
From net investment income.................. -- -- (0.25) (0.36) (0.23)
From net realized gains..................... (1.39) (2.41) (1.29) (1.91) --
In excess of net realized gains............. -- -- -- (0.01) --
------ ------ ------ ------ ------
Net asset value, end of year.................. $35.02 $31.95 $31.82 $31.17 $27.15
====== ====== ====== ====== ======
Total return.................................. 14.63% 9.42% 7.35% 24.82% 7.87%
Ratios/Supplemental Data:
Net assets, end of year (000's omitted)..... $146,350 $116,955 $110,632 $88,860 $27,426
Expenses as a percentage of average
net assets:
Expenses paid by Fund..................... 1.23% 1.24% 1.37% 1.50% 1.50%
Expenses paid by commissions*............. 0.01% 0.05% n/a n/a n/a
Expense offset arrangement................ 0.09% 0.14% n/a n/a n/a
---- ---- ---- ---- ----
Total expenses........................ 1.33% 1.43% 1.37% 1.50% 1.50%
Ratio of net investment income to
average net assets........................ 1.16% 1.55% 1.30% 1.28% 1.71%
Portfolio turnover rate..................... 42% 72% 124% 37% 50%
Average commission rate paid per share**.... $0.0212 $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.
+ Calculated using average shares outstanding for the year.
See Notes to Financial Statements.
<PAGE>
THE 59 WALL STREET PACIFIC BASIN EQUITY FUND
PORTFOLIO OF INVESTMENTS
October 31, 1996
Shares Value
------ -----
COMMON STOCKS AND RIGHTS (94.6%)
AUSTRALIA (5.7%)
ENERGY
133,400 Broken Hill
Proprietary Co., Ltd. .......................... $ 1,771,124
281,000 Woodside Petroleum, Ltd. ......................... 1,982,324
-----------
3,753,448
-----------
GOLD MINES
344,000 RGC, Ltd. ........................................ 1,554,217
-----------
MATERIALS
110,693 CRA, Ltd. ........................................ 1,735,501
233,000 WMC, Ltd. ........................................ 1,464,561
-----------
3,200,062
-----------
TOTAL AUSTRALIA .................................. 8,507,727
-----------
HONG KONG (7.8%)
BANKING
254,172 Dao Heng Bank Group, Ltd. ........................ 1,117,644
-----------
INSURANCE
1,114,000 National Mutual Asia, Ltd. ....................... 936,473
-----------
MATERIALS
2,800,000 C.P. Pokphand Co. ................................ 932,464
-----------
MULTI-INDUSTRY
206,000 Guoco Group, Ltd. ................................ 1,089,651
162,000 Hutchison Whampoa, Ltd. .......................... 1,131,373
151,000 Jardine Matheson Hldgs., Ltd. .................... 853,150
122,500 Swire Pacific, Ltd. .............................. 1,081,274
-----------
4,155,448
-----------
REAL ESTATE
142,000 Cheung Kong Hldgs., Ltd. ......................... 1,138,615
224,000 New World Development
Co., Ltd. ...................................... 1,303,639
105,500 Sun Hung Kai Properties, Ltd. .................... 1,200,693
-----------
3,642,947
-----------
TELECOMMUNICATIONS
515,800 Hong Kong
Telecommunications, Ltd. ....................... 910,565
-----------
TOTAL HONG KONG .................................. 11,695,541
-----------
INDIA (5.5%)
CONSUMER DURABLES
141,000 Ashok Leyland, Ltd. .............................. 1,551,000
44,000 Bajaj Auto, Ltd. ................................. 1,397,000
-----------
2,948,000
-----------
FINANCE
134,000 Industrial Credit & Investment
Corp. of India, Ltd. ........................... 1,457,250
-----------
MATERIALS
70,000 Grasim Industries, Ltd. .......................... 980,000
598,000 Indo Gulf Fertilisers and
Chemicals Corp., Ltd. .......................... 418,600
136,000 Reliance Industries, Ltd. ........................ 1,513,000
41,000 Southern Petrochemicals
Industries Corp., Ltd. ......................... 158,875
-----------
3,070,475
-----------
PHARMACEUTICALS
46,000 Ranbaxy Laboratories, Ltd. ....................... 862,500
-----------
TOTAL INDIA ...................................... 8,338,225
-----------
INDONESIA (2.0%)
BANKING
308,000 Bank Bali ........................................ 634,697
848,125 Bank Dagang Nasional ............................. 600,784
-----------
1,235,481
-----------
CAPITAL EQUIPMENT
180,100 Voksel Electric .................................. 61,855
-----------
MATERIALS
286,000 Semen Cibinong ................................... 626,197
-----------
PHARMACEUTICALS
600,000 Kalbe Farma ...................................... 708,367
-----------
REAL ESTATE
600,000 Ciputra Development .............................. 437,900
-----------
TOTAL INDONESIA .................................. 3,069,800
-----------
JAPAN (58.0%)
BANKING
301,000 Asahi Bank, Ltd. ................................. 3,093,145
700 Bank of Tokyo-Mitsubishi
Bank, Ltd. ..................................... 14,264
490,000 Daiwa Bank, Ltd. ................................. 2,775,899
450,000 Long Term Credit Bank
of Japan ....................................... 2,984,059
300,000 Mitsui Trust and
Banking Co., Ltd. .............................. 2,898,423
340,000 Sakura Bank, Ltd. ................................ 3,225,155
265,000 Sumitomo Trust and
Banking Co., Ltd. .............................. 2,932,678
-----------
17,923,623
-----------
<PAGE>
THE 59 WALL STREET PACIFIC BASIN EQUITY FUND
PORTFOLIO OF INVESTMENTS
October 31, 1996 (continued)
Shares Value
- ------ -----
JAPAN (continued)
CAPITAL EQUIPMENT
20,800 Autobacs Seven Co., Ltd. ......................... $ 1,640,543
103,000 Bridgestone Corp. ................................ 1,736,946
77,000 Denso Corp. ...................................... 1,596,065
40,400 Fanuc, Ltd. ...................................... 1,295,156
179,000 Hitachi, Ltd. .................................... 1,587,897
371,000 Ishikawajima Harina Heavy
Industries Co., Ltd. ........................... 1,710,729
58,100 Kandenko ......................................... 627,667
264,000 Kubota, Ltd. ..................................... 1,493,268
72,500 Kurita Water Industries, Ltd. .................... 1,458,214
25,000 Kyocera Corp. .................................... 1,649,027
31,300 Mabuchi Motor Co., Ltd. .......................... 1,594,484
142,000 Matsushita Electric
Industrial Co., Ltd. ........................... 1,371,920
45,000 Murata Mfg. Co., Ltd. ............................ 1,446,577
50,000 Nippon Electric Glass, Ltd. ...................... 764,130
150,000 Sekisui House, Ltd. .............................. 1,580,958
-----------
21,553,581
-----------
CONSUMER DURABLES
82,000 Canon, Inc. ....................................... 1,570,067
38,000 Sony Music Entertainment, Inc. .................... 1,465,197
29,000 TDK Corp. ......................................... 1,701,462
117,000 Toppan Printing ................................... 1,428,396
----------
6,165,122
----------
CONSUMER NON-DURABLES
60,000 Fuji Photo Film Co. ............................... 1,723,244
137,000 Kao Corp. ......................................... 1,612,402
27,000 Nintendo Co., Ltd. ................................ 1,707,435
32,000 Sony Corp. ........................................ 1,919,635
----------
6,962,716
----------
ENERGY
259,000 Cosmo Oil Co. ..................................... 1,401,291
63,600 Tokyo Electric Power Co. .......................... 1,457,960
----------
2,859,251
----------
FINANCE
45,000 Orix Corp. ........................................ 1,675,816
287,000 Yamaichi Securities Co., Ltd. ..................... 1,598,156
----------
3,273,972
----------
INSURANCE
251,000 Yasuda Fire & Marine
Insurance Co. ................................... 1,593,896
----------
MATERIALS
261,000 Dai Nippon Ink & Chemicals ........................ 1,116,394
506,000 Kawasaki Steel Corp. .............................. 1,559,931
153,000 NGK Spark Plug Co. ................................ 1,572,263
133,000 Sumitomo Electric
Industries, Ltd. ................................ 1,752,229
79,000 Sumitomo Forestry Co., Ltd. ....................... 1,103,245
55,000 Tostem Corp. ...................................... 1,579,641
----------
8,683,703
----------
MULTI-INDUSTRY
17,600 Homewide Corp. .................................... 197,866
205,000 Sumitomo Corp. .................................... 1,654,692
----------
1,852,558
----------
PHARMACEUTICALS
65,000 Sankyo Co. ........................................ 1,609,942
85,000 Taisho Pharmaceutical ............................. 1,687,234
68,000 Yamanouchi Pharmaceutical
Co., Ltd. ....................................... 1,379,650
----------
4,676,826
----------
SERVICES
32,000 Ito-Yokado Co., Ltd. .............................. 1,596,416
103,000 Japan Radio Co. ................................... 1,375,082
39,500 Kato Denki Co., Ltd. .............................. 568,969
24,000 Secom Co., Ltd. ................................... 1,429,186
----------
4,969,653
----------
TELECOMMUNICATIONS
188 DDI Corp. ......................................... 1,411,796
79,000 Denki Kogyo Co., Ltd. ............................. 700,804
63 Japan Telecom Co., Ltd. ........................... 1,516,139
14,700 Kokusai Denshin Denwa ............................. 1,271,749
77,000 Matsushita Communications
Industrial Co., Ltd. ............................ 2,035,659
----------
6,936,147
----------
TOTAL JAPAN .................................... 87,451,048
-----------
MALAYSIA (9.0%)
BANKING
483,000 Commerce Asset Hldgs., Bhd ..................... 3,154,364
76,666 Commerce Asset Hldgs.,
Bhd. (Rights)* ............................... 306,482
-----------
3,460,846
-----------
FINANCE
1,843,000 Public Finance, Bhd ............................ 2,844,924
-----------
<PAGE>
THE 59 WALL STREET PACIFIC BASIN EQUITY FUND
PORTFOLIO OF INVESTMENTS
October 31, 1996 (continued)
Shares Value
------ -----
MALAYSIA (continued)
REAL ESTATE
1,745,000 Bolton Properties, Bhd ......................... $ 3,135,682
650,000 IOI Properties, Bhd ............................ 2,161,092
2,003,000 Lion Land, Bhd ................................. 2,005,775
-----------
7,302,549
-----------
TOTAL MALAYSIA ................................. 13,608,319
-----------
PAKISTAN (0.1%)
BANKING
3 Muslim Commercial Bank* ........................ 3
-----------
ENERGY
20,036 Pakistan State Oil ............................. 172,966
-----------
TEXTILES
57 Crescent Textile Mills* ........................ 18
-----------
TOTAL PAKISTAN ................................. 172,987
-----------
SINGAPORE (4.1%)
BANKING
130,000 Development Bank
of Singapore ................................. 1,559,815
-----------
ENERGY
461,000 DBS Land, Ltd. ................................. 1,453,206
-----------
FINANCE
595,000 First Capital Corp., Ltd. ...................... 1,377,139
-----------
REAL ESTATE
734,000 Wing Tai Hldgs., Ltd. .......................... 1,803,081
-----------
TOTAL SINGAPORE ................................ 6,193,241
-----------
SOUTH KOREA (2.4%)
ENERGY
11,000 Korea Electric Power Corp. ..................... 323,510
-----------
MULTI-INDUSTRY
251,000 CITC Seoul Access Trust* ....................... 3,235,390
-----------
TOTAL SOUTH KOREA .............................. 3,558,900
-----------
TOTAL INVESTMENTS (identified cost $150,018,345) (a) .. 94.6% $142,595,788
CASH AND OTHER ASSETS IN EXCESS OF LIABILITIES ........ 5.4 8,089,159
----- ------------
NET ASSETS ............................................ 100.0% $150,684,947
===== ============
- ---------------------------
* non-income producing security.
(a) the aggregate cost for federal income tax purposes is $150,024,887, the net
aggregate gross unrealized appreciation is $9,128,718 and the aggregate
gross unrealized depreciation is $16,557,817, resulting in net unrealized
depreciation of $7,429,099.
See Notes to Financial Statements.
<PAGE>
THE 59 WALL STREET PACIFIC BASIN EQUITY FUND
STATEMENT OF ASSETS AND LIABILITIES
October 31, 1996
<TABLE>
<S> <C>
ASSETS:
Investments in securities, at value (identified cost $150,018,345) (Note 1) $ 142,595,788
Cash (including $645,388 in foreign currency) ............................. 5,209,249
Receivables for:
Forward foreign currency exchange contracts sold--net (Notes 1 and 5) .. 2,260,504
Investments sold ....................................................... 965,774
Dividends .............................................................. 369,308
Capital stock sold ..................................................... 25,568
-------------
Total Assets ....................................................... 151,426,191
-------------
LIABILITIES:
Payables for:
Investments purchased .................................................. 229,895
Investment advisory fee (Note 2) ....................................... 164,418
Capital stock redeemed ................................................. 137,781
Shareholder servicing/Eligible institution fees (Note 2) ............... 63,238
Foreign withholding taxes .............................................. 44,203
Administrative fee (Note 2) ............................................ 37,943
Accrued expenses and other liabilities ................................. 63,766
-------------
Total Liabilities .................................................. 741,244
-------------
NET ASSETS ..................................................................... $ 150,684,947
=============
Net Assets Consist of:
Paid-in capital ........................................................... $ 154,705,135
Distributions in excess of net investment income .......................... (245,188)
Accumulated net realized gain ............................................. 1,393,227
Net unrealized depreciation ............................................... (5,168,227)
-------------
Net Assets ...................................................................... $ 150,684,947
=============
NET ASSET VALUE AND OFFERING PRICE PER SHARE
($150,684,947 / 4,990,856 shares) ........................................... $30.19
======
</TABLE>
See Notes to Financial Statements.
<PAGE>
THE 59 WALL STREET PACIFIC BASIN EQUITY FUND
STATEMENT OF OPERATIONS
For the year ended October 31, 1996
INVESTMENT INCOME:
INCOME:
Dividends (net of foreign withholding tax of $201,753) . $ 1,736,092
Interest ............................................... 99,498
-----------
Total Income ....................................... 1,835,590
-----------
EXPENSES:
Investment advisory fee (Note 2) ....................... 924,243
Shareholder servicing/Eligible institution fees (Note 2) 355,478
Custodian fee (Note 3) ................................. 279,159
Administrative fee (Note 2) ............................ 213,287
Directors' fees and expenses (Note 2) .................. 13,526
Miscellaneous expenses ................................. 59,668
-----------
Total Expenses ......................................... 1,845,361
Fees paid indirectly (Note 3) ...................... (239,945)
-----------
Net Expenses ....................................... 1,605,416
-----------
Net Investment Income .............................. 230,174
-----------
NET REALIZED AND UNREALIZED GAIN (LOSS) (Notes 1 and 3):
Net realized gain on:
Investments ............................................ 3,199,872
Foreign exchange transactions .......................... 5,968,052
-----------
9,167,924
-----------
Net change in unrealized appreciation/depreciation on:
Investments ............................................ (5,275,057)
Foreign currency translations .......................... 1,048,191
-----------
(4,226,866)
-----------
Net Realized and Unrealized Gain ................... 4,941,058
-----------
Net Increase in Net Assets Resulting from Operations ...... $ 5,171,232
===========
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,
-------------------------------
1996 1995
----------- -------------
<S> <C> <C>
INCREASE (DECREASE) IN NET ASSETS:
Operations:
Net investment income ....................................... $ 230,174 $ 562,988
Net realized gain (loss) on investments and foreign
exchange transactions ..................................... 9,167,924 (2,413,051)
Net change in unrealized depreciation/appreciation on
investments and foreign currency translations ............. (4,226,866) (10,854,466)
------------- -------------
Net increase (decrease) in net assets resulting from
operations .............................................. 5,171,232 (12,704,529)
------------- -------------
Dividends and distributions declared (Note 1):
From net investment income .................................. (3,266,119) (10,397)
In excess of net investment income .......................... (1,873,146) --
From net realized gains ..................................... -- (16,806,025)
------------- -------------
Total dividends and distributions declared ................ (5,139,265) (16,816,422)
------------- -------------
Capital stock transactions (Note 4):
Net proceeds from sales of capital stock .................... 47,402,385 43,542,375
Net asset value of capital stock issued to shareholders in
reinvestment of dividends and distributions ............... 1,695,330 1,433,236
Net cost of capital stock redeemed .......................... (13,376,946) (20,991,748)
------------- -------------
Net increase in net assets resulting from capital stock
transactions ............................................ 35,720,769 23,983,863
------------- -------------
Total increase (decrease) in net assets ................. 35,752,736 (5,537,088)
NET ASSETS:
Beginning of year .............................................. 114,932,211 120,469,299
------------- -------------
End of Year (including distributions in excess of net investment
income of $245,188 and accumulated undistributed net
investment income of $3,035,945, respectively) .............. $ 150,684,947 $ 114,932,211
============= =============
</TABLE>
See Notes to Financial Statements.
<PAGE>
THE 59 WALL STREET PACIFIC BASIN EQUITY FUND
FINANCIAL HIGHLIGHTS
Selected per share data and ratios for a share outstanding throughout each year
<TABLE>
<CAPTION>
For the years ended October 31,
------------------------------------------------------------
1996 1995 1994 1993 1992
------ ------ ------ ------- -------
<S> <C> <C> <C> <C> <C>
Net asset value, beginning of year............ $29.88 $39.85 $39.87 $27.53 $ 27.65
Income from investment operations:
Net investment income....................... 0.05+ 0.11 0.14 0.14 0.12
Net realized and unrealized gain (loss)..... 1.62 (4.50) 1.26 13.18 0.33
Less dividends and distributions (Note 1):
From net investment income................. (0.86) (0.00)* (0.14) (0.02) (0.18)
In excess of net investment income.......... (0.50) -- -- -- --
From net realized gains..................... -- (5.58) (1.28) (0.96) (0.39)
------ ------ ------ ------ ------
Net asset value, end of year.................. $30.19 $29.88 $39.85 $39.87 $27.53
====== ====== ====== ====== ======
Total return.................................. 5.65% (10.62)% 3.48% 50.02% 1.68%
Ratios/Supplemental Data:
Net assets, end of year (000's omitted) ... $150,685 $114,932 $120,469 $92,863 $31,250
Expenses as a percentage of average
net assets:
Expenses paid by Fund..................... 1.13% 1.24% 1.29% 1.50% 1.50%
Expenses paid by commissions**............ 0.01% 0.05% n/a n/a n/a
Expenses offset arrangements.............. 0.16% 0.14% n/a n/a n/a
----- ----- ----- ----- -----
Total expenses.......................... 1.30% 1.43% 1.29% 1.50% 1.50%
Ratio of net investment income to
average net assets....................... 0.16% 0.53% 0.39% 0.62% 0.43%
Portfolio turnover rate..................... 58% 82% 86% 79% 84%
Average commission rate paid per share*** $0.0149 $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.
+ Calculated using average shares outstanding for the year.
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.
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)
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
year ended October 31, 1996, the European Equity Fund and the Pacific Basin
Equity Fund incurred $847,451 and $924,243, 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 year ended October 31, 1996, the
European Equity Fund and the Pacific Basin Equity Fund incurred $195,566 and
$213,287, 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)
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, 1996, the European Equity Fund and the Pacific Basin Equity Fund
incurred $325,943 and $355,478, 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, 1996, the European Equity Fund and the Pacific Basin Equity
Fund incurred $4,347 and $6,969, respectively, for these fees.
3. Investment Transactions. For the year ended October 31, 1996, the cost
of purchases and the proceeds of sales of investment securities other than
short-term investments were as follows:
European Pacific Basin
Equity Fund Equity Fund
----------- ----------
Purchases..................... $64,029,862 $110,710,377
Sales......................... $53,924,593 $ 77,525,402
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 $10,000 and $8,000, 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 $116,349 and $231,945, 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
--------------------- -------------------------
1996 1995 1996 1995
------- ------- ------- --------
<S> <C> <C> <C> <C>
Capital stock sold................................ 922,565 819,896 1,517,549 1,474,684
Capital stock issued in connection with reinvestment
of dividends and distributions................. 13,010 26,294 56,871 49,320
Capital stock repurchased......................... (417,199) (662,437) (430,114) (700,221)
------- ------- ------- -------
Net increase...................................... 518,376 183,753 1,144,306 823,783
======= ======= ======= =======
</TABLE>
5. Financial Instruments with Off-Balance Sheet Risk. At October 31, 1996,
the Pacific Basin Equity Fund had outstanding forward foreign currency exchange
contracts as a hedge to protect against possible changes in foreign currency
exchange rates that would adversely affect a portfolio position or an
anticipated portfolio position. Forward contracts involve elements of market
risk in excess of the amount reflected in the Statement of Assets and
Liabilities. The Funds bear the risk of an unfavorable change in the foreign
exchange rate underlying the forward contracts.
<PAGE>
THE 59 WALL STREET EUROPEAN EQUITY FUND
THE 59 WALL STREET PACIFIC BASIN EQUITY FUND
NOTES TO FINANCIAL STATEMENTS (continued)
Forward foreign currency exchange contracts open at October 31, 1996:
<TABLE>
<CAPTION>
Contracts In Exchange Deliver Unrealized
to Deliver For Date Appreciation
-------- ---------- ------ ----------
<S> <C> <C> <C> <C>
Pacific Basin Equity Fund:
JPY 9,900,000,000 $89,592,760 12/2/96 $2,260,504
========== =========
</TABLE>
6. Federal Income Tax Status. 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, 1996. 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, 1996, the European Equity Fund and Pacific
Basin Equity Fund earned $3,493,615 and $1,651,572, respectively, of dividend
income from foreign countries and paid $480,840 and $201,753, 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, 1996, the related statements of operations
for the year then ended, the statements of changes in net assets for the years
ended October 31, 1996 and 1995, and the financial highlights for each of the
years in the five-year period ended October 31, 1996. 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, 1996 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, 1996, 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 17, 1996
<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,
1996.
European Equity Fund
All major European markets advanced this year encouraged by further
interest rate declines and an improving corporate earnings outlook. Investors,
particularly those in the Continental European markets were not discouraged by
the prospect of sub-par economic recovery, a consequence of fiscal tightening
ahead of monetary union. The best US. dollar adjusted returns were earned in
Spain and Ireland, each up over 30% over the twelve-month period. Among the
major market laggards, Italy produced the weakest performance, returning only
7.6%. The European Equity Fund achieved a dollar-adjusted return of 14.6% over
this period. Since its inception six years ago, the European Equity Fund has
provided its investors with a compound annual return of 10.7%.
Over the course of the last year, the Fund's investment strategy has
continued to focus on those companies with visible earnings growth and
reasonable valuations. As the year progressed, the Fund has repositioned its
holdings to beneflt from an increased market emphasis on corporate restructuring
and earnings enhancement.
[The following table was depicted as a line graph in the printed material]
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, 1996; 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:
DATE European Equity Fund* MSCI-Europe
---- --------------------- -----------
10/31/90 $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
2/28/90 $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 $11,218 $10,488
12/31/92 $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
11/30/95 $15,842 $16,726
12/31/95 $16,352 $17,257
1/31/96 $16,404 $17,369
2/29/96 $16,678 $17,685
3/31/96 $17,219 $17,897
4/30/96 $17,630 $18,026
5/31/96 $17,966 $18,165
6/30/96 $17,924 $18,365
7/31/96 $17,445 $18,135
8/31/96 $17,971 $18,674
9/30/96 $18,165 $18,970
10/31/96 $18,418 $19,508
*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,
rose a modest 3.3% in US dollars during the year ending October 31. 1996.
Returns in individual markets within the region varied widely. Japan, the
largest market within the region, rose 10.3% during the period, but the weakness
of the Yen translated that return into a dollar-adjusted decline of 0.8%. Hong
Kong and Malaysia, on the other hand, provided dollar based investors with
returns of 28.0% and 26.8%, respectively, during the same period. Thailand and
South Korea proved to be the worst performing markets last year, falling 29.4%
and 36.2%, respectively. Both markets suffered from declining exports, higher
interest rates, and political uncertainty. The Pacific Basin Equity Fund was not
invested in Thailand this year and had only a small exposure to the Korean
market.
Over the last twelve months, the Pacific Basin Equity Fund has outperformed
the MSCI-Pacific Index, rising 5.7%. The out performance was due, in part, to a
relatively underweighted position in Japan, and by the Fund's strategy of
protecting the dollar value of its Japanese exposure by defensively hedging the
Yen. Over the period since its inception, the Fund achieved a compound annual
return of 8.7%, well ahead of the MSCI-Pacific Index's return of 3.7%.
[The following table was depicted as a line graph in the printed material]
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, 1996; 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:
DATE Pacific Basin Equity Fund* MSCI-Pacific
---- -------------------------- ------------
10/31/90 $10,000 $10,000
11/30/90 $9,368 $8,891
12/31/90 $9,580 $9,270
1/31/90 $9,940 $9,559
2/28/90 $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
11/30/95 $15,574 $12,632
12/31/95 $16,421 $13,249
1/31/96 $17,197 $13,271
2/29/96 $16,924 $13,121
3/31/96 $17,399 $13,524
4/30/96 $18,317 $14,213
3/31/96 $17,956 $13,596
6/30/96 $17,885 $13,598
7/31/96 $17,000 $12,973
8/31/96 $16,530 $12,632
9/30/96 $16,978 $13,044
10/31/96 $16,497 $12,438
*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
(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.
