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European Equity Fund
Pacific Basin Equity Fund
ANNUAL REPORT
October 31, 1997
<PAGE>
THE 59 WALL STREET EUROPEAN EQUITY FUND
PORTFOLIO OF INVESTMENTS
October 31, 1997
Shares Value
-------- ----------
COMMON STOCKS & WARRANTS (98.80%)
FINLAND (1.9%)
MULTI-INDUSTRY
33,000 Nokia AB ............................................ $ 2,883,294
-----------
TOTAL FINLAND ....................................... 2,883,294
-----------
FRANCE (11.2%)
BANKING
70,000 Banque National De Paris C.I ........................ 3,094,526
26,000 Societe Generale SA ................................. 3,560,872
-----------
6,655,398
-----------
CAPITAL EQUIPMENT
24,050 Alcatel Alsthom SA .................................. 2,901,885
-----------
CONSUMER NON-DURABLES
10,870 LVMH ................................................ 1,846,765
-----------
MEDIA
14,620 Canal Plus .......................................... 2,542,168
-----------
SERVICES
17,975 Accor SA ........................................... 3,346,795
-----------
TOTAL FRANCE ........................................ 17,293,011
-----------
GERMANY (14.4%)
BANKING
92,900 Commerzbank AG ...................................... 3,152,715
57,590 Depfa Bank AG ....................................... 3,250,671
-----------
6,403,386
-----------
CAPITAL EQUIPMENT
4,070 Linde AG ............................................ 2,455,505
49,100 Siemens AG .......................................... 3,022,108
-----------
5,477,613
-----------
CONSUMER GOODS
35,770 Merck KGaA .......................................... 1,325,968
-----------
ENERGY
53,100 VEBA AG ............................................. 2,960,268
-----------
INSURANCE
10,000 Allianz AG .......................................... 2,227,637
-----------
MULTI-INDUSTRY
119,447 Metallgesellshaft AG ................................ 2,376,744
-----------
RETAIL
34,032 Metro AG* ........................................... 1,496,476
-----------
TOTAL GERMANY ....................................... 22,268,092
-----------
IRELAND (2.1%)
CONSUMER NON-DURABLES
1,260,000 Waterford Wedgewood, Plc ............................ 1,459,083
-----------
PHARMACEUTICALS
35,000 Elan Corp., Plc., ADR* .............................. 1,745,625
-----------
TOTAL IRELAND ....................................... 3,204,708
-----------
ITALY (5.6%)
BANKING
276,000 Istituto Mobiliare
Italiano SpA (IMI) ................................ 2,498,183
-----------
ENERGY
486,000 Ente Nazionale
Idrocarbun SpA (ENI)* ............................. 2,746,919
-----------
TELECOMMUNICATIONS
908,200 Telecom Italia Mobile SpA ........................... 3,352,776
-----------
TOTAL ITALY ......................................... 8,597,878
-----------
NETHERLANDS (8.0%)
CONSUMER GOODS
18,000 Heineken NV ......................................... 2,927,839
-----------
FINANCE
69,000 Fortis Amev NV ...................................... 2,711,666
-----------
MATERIALS
25,905 Akzo Nobel NV ....................................... 4,564,564
-----------
TELECOMMUNICATIONS
55,000 Koninklijke PTT Nederland ........................... 2,101,983
-----------
TOTAL NETHERLANDS ................................... 12,306,052
-----------
POLAND (0.2%)
BANKING
26,000 Bank Handlowy W Warsza
Wie SA GDR* ....................................... 349,153
-----------
TOTAL POLAND ........................................ 349,153
-----------
ROMANIA (1.1%)
MULTI-INDUSTRY
242,918 Romania Growth Fund PLC ............................. 1,792,732
-----------
TOTAL ROMANIA ....................................... 1,792,732
-----------
<PAGE>
THE 59 WALL STREET EUROPEAN EQUITY FUND
PORTFOLIO OF INVESTMENTS
October 31, 1997
Shares Value
-------- ----------
SPAIN (4.2%)
ENERGY
65,440 Repsol SA ........................................... $ 2,744,098
-----------
FINANCE
16,060 Argentaria SA ....................................... 892,038
-----------
UTILITIES
101,910 Telefonica de Espana ................................ 2,781,211
-----------
TOTAL SPAIN ......................................... 6,417,347
-----------
SWEDEN (5.7%)
CAPITAL EQUIPMENT
60,000 Ericsson (LM)
Telephone Co., Class `B' .......................... 2,643,560
-----------
CONSUMER DURABLES
40,600 Electrolux AB (B free) .............................. 3,360,792
-----------
FINANCE
60,000 Skandia Foersaekrings AB ............................ 2,803,776
-----------
TOTAL SWEDEN ........................................ 8,808,128
-----------
SWITZERLAND (11.1%)
BANKING
19,710 Credit Suisse AG Registered ......................... 2,776,502
3,170 Union Bank of Switzerland
Bearer ............................................ 3,649,377
-----------
6,425,879
-----------
CONSUMER GOODS
330 Roche Holdings AG DRC ............................... 2,899,946
-----------
CONSUMER NON-DURABLES
2,600 Nestle AG Registered ................................ 3,663,489
-----------
PHARMACEUTICALS
2,650 Novartis AG Bearer ................................. 4,178,682
-----------
TOTAL SWITZERLAND .................................. 17,167,996
-----------
UNITED KINGDOM (33.3%)
BANKING
161,000 Barclays, Plc ...................................... 4,032,860
230,000 Commercial Union, Plc .............................. 3,241,415
-----------
7,274,275
-----------
CONSUMER GOODS
280,000 Guiness, Plc ....................................... 2,503,876
430,000 Safeway, Plc ....................................... 2,800,963
290,000 Smithkline Beecham, Plc ............................ 2,748,995
360,000 Unilever, Plc ...................................... 2,681,717
-----------
10,735,551
-----------
ENERGY
240,000 British Petroleum Co., Plc ......................... 3,527,304
230,000 PowerGen, Plc ...................................... 2,558,403
-----------
6,085,707
-----------
FINANCE
110,000 HSBC Holdings, Plc ................................. 2,583,737
180,000 Land Securities, Plc ............................... 3,019,952
325,000 LLoyds TSB Group, Plc .............................. 4,062,255
-----------
9,665,944
-----------
MULTI-INDUSTRY
575,000 Inchcape, Plc ...................................... 2,093,414
-----------
PHARMACEUTICALS
179,000 Glaxo Wellcome, Plc ................................ 3,838,057
-----------
SERVICES
285,000 BAA, Plc ........................................... 2,629,875
190,000 Granada Group, Plc ................................. 2,620,312
208,000 Railtrack Group, Plc ............................... 3,325,705
280,000 Reuters Holdings, Plc .............................. 3,039,414
-----------
11,615,306
-----------
TOTAL UNITED KINGDOM ............................... 51,308,254
-----------
TOTAL INVESTMENTS (identified cost
$130,233,674) (a) .................................... 98.8 152,396,645
CASH AND OTHER ASSETS IN EXCESS OF LIABILITIES ......... 1.2 1,782,030
----- ------------
NET ASSETS ............................................. 100.0% $154,178,675
===== ============
- ----------
* non-income producing security
(a) The aggregate cost for federal income tax purposes is $130,801,199, the
aggregate gross unrealized appreciation is $27,216,454 and the aggregate
gross unrealized depreciation is $5,621,008 resulting in net unrealized
appreciation of $21,595,446.
See Notes to Financial Statements.
<PAGE>
THE 59 WALL STREET EUROPEAN EQUITY FUND
STATEMENT OF ASSETS AND LIABILITIES
October 31, 1997
ASSETS:
Investments in securities, at value
(identified cost $130,233,674) (Note 1) ................. $152,396,645
Cash (including $45,909 in foreign currency) ............... 1,783,754
Receivables for:
Foreign tax reclaim ..................................... 285,961
Dividends ............................................... 157,285
Capital stock sold ...................................... 1,197
------------
Total Assets ....................................... 154,624,842
------------
LIABILITIES:
Payables for:
Capital stock redeemed .................................. 95,088
Investment advisory fee (Note 2) ........................ 89,783
Shareholder servicing/Eligible institution
fees (Note 2) ......................................... 34,532
Administrative fee (Note 2) ............................. 20,719
Accrued expenses and other liabilities .................. 206,045
------------
Total Liabilities .................................. 446,167
------------
NET ASSETS .................................................... $154,178,675
============
Net Assets Consist of:
Paid-in capital ............................................ $111,780,014
Accumulated undistributed net investment income ............ 543,447
Accumulated net realized gain .............................. 19,683,808
Net unrealized appreciation ................................ 22,171,406
------------
Net Assets .................................................... $154,178,675
============
NET ASSET VALUE AND OFFERING PRICE PER SHARE
($154,178,675 / 4,055,462 shares) .......................... $ 38.02
============
See Notes to Financial Statements.
<PAGE>
THE 59 WALL STREET EUROPEAN EQUITY FUND
STATEMENT OF OPERATIONS
For the year ended October 31, 1997
INVESTMENT INCOME:
Income:
Dividends (net of foreign withholding taxes of $524,390) .. $ 3,638,687
Interest .................................................. 8,533
------------
Total Income .......................................... 3,647,220
------------
Expenses:
Investment advisory fee (Note 2) .......................... 1,012,388
Shareholder servicing/Eligible institution fees (Note 2) .. 389,489
Administrative fee (Note 2) ............................... 233,628
Custodian fee (Note 3) .................................... 334,835
Directors' fees and expenses (Note 2) ..................... 21,040
Miscellaneous expenses .................................... 139,338
------------
Total Expenses ............................................ 2,130,718
Fees paid indirectly .................................. (70,518)
------------
Net Expenses .......................................... 2,060,200
------------
Net Investment Income ........................................ 1,587,020
------------
NET REALIZED AND UNREALIZED GAIN (LOSS) (Notes 1 and 3):
Net realized gain (loss) on:
Investments ............................................... 22,245,001
Foreign exchange transactions ............................. (3,326,074)
------------
18,918,927
------------
Net change in unrealized appreciation on:
Investments ............................................... 3,971,604
Foreign currency translations ............................. (106,439)
------------
3,865,165
------------
Net Realized and Unrealized Gain ...................... 22,784,092
------------
Net Increase in Net Assets Resulting from Operations ......... $ 24,371,112
============
See Notes to Financial Statements.
<PAGE>
THE 59 WALL STREET EUROPEAN EQUITY FUND
STATEMENT OF CHANGES IN NET ASSETS
For the years ended October 31,
-------------------------------
1997 1996
---- ----
INCREASE (DECREASE) IN NET ASSETS:
Operations:
Net investment income ...................... $ 1,587,020 $ 1,517,318
Net realized gain on investments
and foreign exchange transactions ........ 18,918,927 4,032,140
Net change in unrealized appreciation
on investments and foreign currency
translations ............................. 3,865,165 12,375,805
------------- -------------
Net increase in net assets resulting
from operations ........................ 24,371,112 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 ...... (11,157,471) (5,095,644)
------------- -------------
Capital stock transactions (Note 4):
Net proceeds from sales of
capital stock .......................... 25,594,329 29,772,327
Net asset value of capital stock
issued to shareholders in
reinvestment of dividends
and distributions ...................... 706,526 395,504
Net cost of capital stock redeemed ......... (31,685,844) (13,602,848)
------------- -------------
Net increase (decrease) in net
assets resulting from capital
stock transactions ................... (5,384,989) 16,564,983
------------- -------------
Total increase in net assets ......... 7,828,652 29,394,602
NET ASSETS:
Beginning of year ............................ 146,350,023 116,955,421
------------- -------------
End of year (including undistributed
net investment income of $543,447
and $1,056,298) ............................ $ 154,178,675 $ 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 year
<TABLE>
<CAPTION>
For the years ended October 31,
-----------------------------------------------------------
1997 1996 1995 1994 1993
---- ---- ---- ---- ----
<S> <C> <C> <C> <C> <C>
Net asset value, beginning of year............ $35.02 $31.95 $31.82 $31.17 $27.15
Income from investment operations:
Net investment income....................... 0.39 0.381 0.45 0.39 0.21
Net realized and unrealized gain............ 5.29 4.08 2.09 1.80 6.09
Less dividends and distributions (Note 1):
From net investment income.................. (0.41) -- -- (0.25) (0.36)
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 year.................. $38.02 $35.02 $31.95 $31.82 $31.17
====== ====== ====== ====== ======
Total return.................................. 17.28% 14.63% 9.42% 7.35% 24.82%
Ratios/Supplemental Data:
Net assets, end of year (000's omitted)..... $154,179 $146,350 $116,955 $110,632 $88,860
Expenses as a percentage of average
net assets:
Expenses paid by Fund..................... 1.32% 1.23% 1.24% 1.37% 1.50%
Expenses paid by commissions(2) .......... 0.01% 0.01% 0.05% n/a n/a
Expense offset arrangement................ 0.03% 0.09% 0.14% n/a n/a
------ ------ ------ ------ ------
Total expenses........................ 1.36% 1.33% 1.43% 1.37% 1.50%
Ratio of net investment income to
average net assets........................ 1.02% 1.16% 1.55% 1.30% 1.28%
Portfolio turnover rate..................... 82% 42% 72% 124% 37%
Average commission rate paid
per share(3) ............................. $0.0062 $0.0212 $0.0216 -- --
</TABLE>
- ----------
(1) Calculated using average shares outstanding for the year.
(2) 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.
(3) Most foreign securities markets do not charge commissions based on a rate
per share but as a percentage of the principal value of the transaction. As
a result, the above rate is not indicative of the commission arrangements
currently in effect.
See Notes to Financial Statements.
<PAGE>
THE 59 WALL STREET PACIFIC BASIN EQUITY FUND
PORTFOLIO OF INVESTMENTS
October 31, 1997
Shares Value
- ---------- ------------
COMMON STOCKS & WARRANTS (92.70%)
AUSTRALIA (6.7%)
ENERGY
279,000 Woodside Petroleum, Ltd. ......................... $ 2,356,444
------------
MATERIALS
109,693 Rio Tinto, Ltd. .................................. 1,334,550
230,000 WMC, Ltd. ........................................ 816,825
------------
2,151,375
------------
MULTI-INDUSTRY
769,000 Pacific Dunlop, Ltd. ............................. 1,642,408
------------
SERVICES
529,714 Pasminco, Ltd. ................................... 675,506
------------
TOTAL AUSTRALIA .................................. 6,825,733
------------
HONG KONG (2.5%)
BANKING
102,000 Dao Heng Bank Group, Ltd. ........................ 234,831
------------
CONSUMER GOODS
294,000 Dairy Farms Intl ................................. 232,260
------------
INSURANCE
258,000 National Mutual Asia, Ltd. ....................... 233,590
------------
MATERIALS
1,039,000 C.P. Pokphand Co. ................................ 248,613
------------
MULTI-INDUSTRY
92,000 Guoco Group, Ltd. ................................ 201,099
34,000 Hutchison Whampoa, Ltd. .......................... 235,271
38,000 Jardine Matheson Holdings ........................ 243,200
46,500 Swire Pacific, Ltd. .............................. 248,393
------------
927,963
------------
REAL ESTATE
33,500 Cheung Kong Hldgs., Ltd. ......................... 232,895
65,000 New World Development
Co., Ltd. ...................................... 228,675
------------
461,570
------------
TELECOMMUNICATIONS
132,800 Hong Kong
Telecommunications, Ltd. ....................... 254,212
------------
TOTAL HONG KONG .................................. 2,593,039
------------
INDIA (6.4%)
CONSUMER DURABLES
133,100 Ashok Leyland, Ltd. .............................. 565,675
94,500 Bajaj Auto, Ltd. ................................. 1,503,784
------------
2,069,459
------------
FINANCE
260,700 Industrial Credit & Investment
Corp. of India, Ltd. ........................... 864,904
------------
MATERIALS
72,650 Grasim Industries, Ltd. .......................... 635,688
714,000 Indo Gulf Fertilisers and
Chemicals Corp., Ltd. .......................... 660,450
170,200 Reliance Industries, Ltd. ........................ 882,132
247,000 Southern Petrochemicals
Industries Corp., Ltd. ......................... 716,300
------------
2,894,570
------------
PHARMACEUTICALS
36,850 Ranbaxy Laboratories, Ltd. ....................... 717,354
------------
TOTAL INDIA ...................................... 6,546,287
------------
INDONESIA (1.7%)
BANKING
3,130,502 Bank Dagang Nasional
Indonesia ...................................... 388,195
------------
CONSUMER GOODS
158,000 PT HM Sampoerna .................................. 275,021
480,000 PT Kalbe Farma ................................... 292,926
------------
567,947
------------
MULTI-INDUSTRY
378,000 PT Astra Intl, Inc. .............................. 280,485
------------
SERVICES
950,000 Citra Marga Nusaphale
Persada ........................................ 270,111
272,500 PT Telekomunikasi Ser B .......................... 253,225
------------
523,336
------------
TOTAL INDONESIA .................................. 1,759,963
------------
JAPAN (71.6%)
BANKING
221,000 Asahi Bank, Ltd. ................................. 1,145,858
490,000 Daiwa Bank, Ltd. ................................. 1,824,013
<PAGE>
THE 59 WALL STREET PACIFIC BASIN EQUITY FUND
PORTFOLIO OF INVESTMENTS
October 31, 1997 (continued)
Shares Value
- ---------- ------------
JAPAN (continued)
300,000 Mitsui Trust and Banking
Co., Ltd. ...................................... $ 1,041,961
340,000 Sakura Bank, Ltd. ................................ 1,387,121
265,000 Sumitomo Trust and
Banking Co., Ltd. ............................. 2,019,152
------------
7,418,105
------------
CONSUMER ELECTRONICS
94,000 Canon Inc. ....................................... 2,280,681
88,000 Canon Sales Co., Inc. ............................ 1,601,329
1,600 Canon Sales Co., Inc. ............................
(Warrants) ..................................... 102,839
31,700 Sony Corp. ....................................... 2,631,350
------------
6,616,199
------------
CONSUMER GOODS
325,000 Kirin Brewery Co. ................................ 2,727,461
250,000 Suzuki Motor Corp. ............................... 2,658,911
81,000 Toyota Motor Corp. ............................... 2,254,674
------------
7,641,046
------------
CONSUMER NON-DURABLES
57,000 Fuji Photo Film Co. .............................. 2,064,977
37,800 Nintendo Co., Ltd. ............................... 3,266,473
------------
5,331,450
------------
ELECTRIC COMPONENTS
100 Kandenko Co. ..................................... 677
26,200 Kyocera Corp. .................................... 1,499,942
73,000 Matsushita Communications
Industrial Co.,Ltd ............................. 2,577,898
268,000 Minebea Co., Ltd. ................................ 2,672,206
55,000 Murata Mfg. Co., Ltd. ............................ 2,230,162
25,000 Rohm Company Ltd. ................................ 2,388,866
28,000 TDK Corp. ........................................ 2,321,895
------------
13,691,646
------------
FINANCE
50,000 Acom Co., Ltd. ................................... 2,742,002
40,000 Orix Corp. ....................................... 2,732,031
------------
5,474,033
------------
INDUSTRIAL ELECTRONICS
223,000 Hitachi, Ltd. .................................... 1,713,959
------------
MATERIALS
132,000 Bridgestone Corp. ................................ 2,851,683
700 Kurita Water Industries .......................... 12,331
135,000 Sumitomo Electric
Industries, Ltd. ............................... 1,783,548
100 Sumitomo Electric
Industries, Ltd. (Warrants) .................... 153,718
------------
4,801,280
------------
MULTI-INDUSTRY
272,000 Sumitomo Corp. ................................... 1,943,664
------------
PHARMACEUTICALS
83,000 Taisho Pharmaceutical ............................ 2,124,138
80,000 Yamanouchi Pharmaceutical
Co., Ltd. ...................................... 1,967,594
------------
4,091,732
------------
RETAIL
45,000 Ito-Yokado Co., Ltd. ............................. 2,235,978
------------
SERVICES
500 Autobacs Seven Co., Ltd. ......................... 26,049
50,000 Benesse Corp. .................................... 1,491,483
85,000 Credit Saison .................................... 2,281,263
100 Credit Saison (Warrants) ......................... 237,500
1,000,000 Kawasaki Kisen Kaisha, Ltd. ...................... 1,437,474
23,100 Nichiei Co., Ltd. ................................ 2,533,610
821,000 Prospect Japan Fund .............................. 2,926,865
------------
10,934,244
------------
TELECOMMUNICATIONS
98 Japan Telecom Co., Ltd. .......................... 1,368,010
------------
TOTAL JAPAN ...................................... 73,261,346
------------
MALAYSIA (3.8%)
FINANCE
1,021,000 Public Finance, Bhd .............................. 502,307
------------
MULTI-INDUSTRY
86,100 Genting Berhad ................................... 242,790
97,000 Perusahaan Otomobil
Nasional* ...................................... 232,788
978,000 Renong Berhad .................................... 897,759
267,000 Sime Darby Berhad ................................ 384,461
------------
1,757,798
------------
<PAGE>
THE 59 WALL STREET PACIFIC BASIN EQUITY FUND
PORTFOLIO OF INVESTMENTS
October 31, 1997 (continued)
Shares Value
- ---------- ------------
REAL ESTATE
1,577,250 Bolton Properties, Bhd ........................... $ 657,680
618,500 IOI Properties, Bhd .............................. 489,828
------------
1,147,508
------------
TELECOMMUNICATIONS
167,000 Telekom Malaysia ................................. 433,343
------------
TOTAL MALAYSIA ................................... 3,840,956
------------
PAKISTAN (0.0%)
MATERIALS
62 Crescent Textiles ................................ 23
------------
TOTAL PAKISTAN ................................... 23
------------
TOTAL INVESTMENTS (identified cost
$113,849,582) (a) .................................... 92.7% $ 94,827,347
CASH AND OTHER ASSETS IN EXCESS OF LIABILITIES ......... 7.3 7,479,144
----- ------------
NET ASSETS ............................................. 100.0% $102,306,491
===== ============
- ----------
* non-income producing security.
(a) The aggregate cost for federal income tax purposes is $115,701,724, the net
aggregate gross unrealized appreciation is $10,304,482 and the aggregate
gross unrealized depreciation is $31,178,859, resulting in net unrealized
depreciation of $20,874,377.
See Notes to Financial Statements.
<PAGE>
THE 59 WALL STREET PACIFIC BASIN EQUITY FUND
STATEMENT OF ASSETS AND LIABILITIES
October 31, 1997
ASSETS:
Investments in securities, at value
(identified cost $113,849,582) (Note 1) ............... $ 94,827,347
Cash (including $363,311 in foreign currency) ........... 2,911,653
Receivables for:
Investments sold ...................................... 3,385,242
Forward foreign currency exchange contracts
sold - net (Notes 1 and 5) .......................... 2,092,136
Dividends ............................................. 297,284
Capital stock sold .................................... 349,544
-------------
Total Assets ...................................... 103,863,206
-------------
LIABILITIES:
Payables for:
Investments purchased .................................. 814,250
Capital stock redeemed ................................. 542,760
Investment advisory fee (Note 2) ....................... 64,158
Foreign withholding taxes .............................. 35,287
Shareholder servicing/Eligible
institution fees (Note 2) ............................ 24,676
Administrative fee (Note 2) ............................ 14,805
Accrued expenses and other liabilities ................. 60,779
-------------
Total Liabilities .................................. 1,556,715
-------------
NET ASSETS ................................................ $ 102,306,491
=============
Net Assets Consist of:
Paid-in capital ......................................... $ 132,250,481
Accumulated undistributed net
investment income ..................................... 1,344,152
Accumulated net realized loss ........................... (14,360,902)
Net unrealized depreciation ............................. (16,927,240)
-------------
Net Assets ................................................ $ 102,306,491
=============
NET ASSET VALUE AND OFFERING PRICE PER SHARE
($102,306,491 / 4,172,270 shares) ....................... $ 24.52
=============
See Notes to Financial Statements.
<PAGE>
THE 59 WALL STREET PACIFIC BASIN EQUITY FUND
STATEMENT OF OPERATIONS
For the year ended October 31, 1997
INVESTMENT INCOME:
Income:
Dividends (net of foreign withholding
tax of $224,816) .................................... $ 1,708,429
------------
Expenses:
Investment advisory fee (Note 2) ...................... 931,879
Shareholder servicing/Eligible institution
fees (Note 2) ....................................... 358,761
Administrative fee (Note 2) ........................... 215,035
Custodian fee (Note 3) ................................ 232,975
Directors' fees and expenses (Note 2) ................. 16,529
Professional fees ..................................... 40,087
Miscellaneous expenses ................................ 16,549
------------
Total Expenses ........................................ 1,811,815
Fees paid indirectly .............................. (105,242)
------------
Net Expenses ...................................... 1,706,573
------------
Net Investment Income .................................... 1,856
------------
NET REALIZED AND UNREALIZED LOSS (Notes 1 and 3):
Net realized loss on:
Investments ........................................... (2,942,063)
Foreign exchange transactions ......................... (6,631,838)
------------
(9,573,901)
------------
Net change in unrealized depreciation on:
Investments ........................................... (11,599,968)
Foreign currency translations ......................... (159,044)
------------
(11,759,012)
------------
Net Realized and Unrealized Loss .................. (21,332,913)
------------
Net Decrease in Net Assets Resulting
from Operations ........................................ $(21,331,057)
============
See Notes to Financial Statements.
<PAGE>
THE 59 WALL STREET PACIFIC BASIN EQUITY FUND
STATEMENT OF CHANGES IN NET ASSETS
For the years ended October 31,
-------------------------------
1997 1996
---- ----
INCREASE (DECREASE) IN NET ASSETS:
Operations:
Net investment income ...................... $ 1,856 $ 230,174
Net realized gain (loss) on investments
and foreign exchange transactions ........ (9,573,901) 9,167,924
Net change in unrealized depreciation
on investments and foreign currency
translations ............................. (11,759,012) (4,226,866)
------------- -------------
Net increase (decrease) in net assets
resulting from operations .............. (21,331,057) 5,171,232
------------- -------------
Dividends and distributions declared (Note1):
From net investment income ................. (1,856) (3,266,119)
In excess of net investment income ......... (1,232,885) (1,873,146)
From net realized gains .................... (1,393,227) --
In excess of net realized gains ............ (2,266,428) --
------------- -------------
Total dividends and distributions
declared .............................. (4,894,396) (5,139,265)
------------- -------------
Capital stock transactions (Note 4):
Net proceeds from sales of capital stock ... 35,999,815 47,402,385
Net asset value of capital stock issued
to shareholders in reinvestment of
dividends and distributions .............. 43,114 1,695,330
Net cost of capital stock redeemed ......... (58,195,932) (13,376,946)
------------- -------------
Net increase (decrease) in net assets
resulting from capital stock
transactions ........................... (22,153,003) 35,720,769
------------- -------------
Total increase (decrease) in net assets .. (48,378,456) 35,752,736
NET ASSETS:
Beginning of year ............................. 150,684,947 114,932,211
------------- -------------
End of year (including undistributed
net investment income and
distributions in excess of net
investment income of $1,344,152
and $245,188, respectively) ............... $ 102,306,491 $ 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 year
<TABLE>
<CAPTION>
For the years ended October 31,
------------------------------------------------------------
1997 1996 1995 1994 1993
------ ------ ------ ------ ------
<S> <C> <C> <C> <C> <C>
Net asset value, beginning of year............ $30.19 $29.88 $39.85 $39.87 $27.53
Income from investment operations:
Net investment income....................... 0.00(1,2) 0.05(1) 0.11 0.14 0.14
Net realized and unrealized gain (loss)..... (4.69) 1.62 (4.50) 1.26 13.18
Less dividends and distributions (Note 1):
From net investment income.................. (0.00)(2) (0.86) (0.00)(2) (0.14) (0.02)
In excess of net investment income.......... (0.25) (0.50) -- -- --
From net realized gains..................... (0.28) -- (5.58) (1.28) (0.96)
In excess of net realized gains............. (0.45) -- -- -- --
------ ------ ------ ------ ------
Net asset value, end of year.................. $24.52 $30.19 $29.88 $39.85 $39.87
====== ====== ====== ====== ======
Total return.................................. (16.03)% 5.65% (10.62)% 3.48% 50.02%
Ratios/Supplemental Data:
Net assets, end of period (000's omitted) .. $102,306 $150,685 $114,932 $120,469 $92,863
Expenses as a percentage of average
net assets:
Expenses paid by Fund..................... 1.19% 1.13% 1.24% 1.29% 1.50%
Expenses paid by commissions(4) .......... 0.01% 0.01% 0.05% n/a n/a
Expenses offset arrangement............... 0.06% 0.16% 0.14% n/a n/a
------ ------ ------ ------ ------
Total expenses.......................... 1.26% 1.30% 1.43% 1.29% 1.50%
Ratio of net investment income to
average net assets....................... 0.00%(2) 0.16% 0.53% 0.39% 0.62%
Portfolio turnover rate..................... 63% 58% 82% 86% 79%
Average commission rate paid per share(3)... $0.0195 $0.0149 $0.0092 -- --
</TABLE>
- ----------
(1) Calculated using average shares outstanding for the year.
(2) Less than $0.01 per share.
(3) 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.
(4) 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.
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, 1997, the European Equity Fund and the Pacific Basin
Equity Fund incurred $1,012,388 and $931,879, 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, 1997, the
European Equity Fund and the Pacific Basin Equity Fund incurred $233,628 and
$215,035, 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, 1997, the European Equity Fund and the Pacific Basin Equity Fund
incurred $389,489 and $358,761, 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, 1997, the European Equity Fund and the Pacific Basin Equity
Fund incurred $21,040 and $16,529, respectively, for these fees.
3. Investment Transactions. For the year ended October 31, 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................ $125,028,500 $ 85,912,207
Sales.................... $136,670,366 $ 112,200,002
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 $24,400 and $16,138, 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 $46,118 and $89,104, 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:
For the years ended October 31,
-----------------------------------------------
European Equity Fund Pacific Basin Equity Fund
--------------------- -----------------------
1997 1996 1997 1996
---- ---- ---- ----
Capital stock sold ............. 727,395 922,565 1,257,815 1,517,549
Capital stock issued in
connection with reinvestment
of dividends and
distributions .............. 21,179 13,010 1,499 56,871
Capital stock repurchased ...... (872,257) (417,199) (2,077,900) (430,114)
-------- -------- ---------- ----------
Net increase (decrease) ........ (123,683) 518,376 (818,586) 1,144,306
======== ======== ========== ==========
5. Financial Instruments with Off-Balance Sheet Risk. At October 31, 1997,
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, 1997:
Contracts In Exchange Deliver Unrealized
to deliver For Date Appreciation
---------- ----------- ------- ------------
Pacific Basin
Equity Fund:
JPY 5,800,000,000 $50,060,418 11/18/97 $1,743,474
JPY 5,800,000,000 $48,763,263 12/2/97 348,662
----------
$2,092,136
==========
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, 1997. 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, 1997, the European Equity Fund and Pacific
Basin Equity Fund earned $4,163,077 and $1,933,245, respectively, of dividend
income from foreign countries and paid $524,390 and $224,816, respectively, in
taxes to those foreign countries. At October 31, 1997, the Pacific Basin Equity
Fund, for federal income tax purposes, had a capital loss carryforward of
$12,262,899 which may be applied against any net taxable realized gains of each
succeeding year until the earlier of it utilization or expiration on October 31,
2005.
<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, 1997, the related statements of operations
for the year then ended, the statements of changes in net assets for the years
ended October 31, 1997 and 1996, and the financial highlights for each of the
years in the five-year period ended October 31, 1997. 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, 1997 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, 1997, the
results of their operations, the changes in their net assets, and their
financial highlights for the respective stated periods in conformity with
generally accepted accounting principles.
DELOITTE & TOUCHE LLP
Boston, Massachusetts
December 12, 1997
<PAGE>
Managements Discussion of fund performance
The following investment management strategies and techniques have
materially affected the Funds performance for the fiscal year ended October 31,
1997.
European Equity Fund
European equity markets continued their advance this year, encouraged by an
improving economic environment. Better economic growth, generated mainly by the
export sector, as well as continued corporate restructuring have, in turn,
contributed to an acceleration in earnings growth. Only in the UK have a strong
currency and higher interest rates produced slower economic and corporate
profits growth, but even that slowdown failed to dampen investor sentiment.
Major European equity markets rose between 12.6% and 37.8% over the last twelve
months. The best performer was Spain and the worst, France.
The European Equity Fund achieved a dollar-adjusted return of 17.3% over
this period, and since its inception seven years ago, the Fund has provided its
investors with a compound annual return of 11.6%. The Funds investment strategy
over the last year focused on those companies with visible earnings growth and
reasonable valuations within the context of a broadly inclusive group of
countries participating in European Monetary Union next year. Portfolio returns
were further enhanced by a modest exposure to emerging markets in Eastern Europe
and Turkey, the latter market rising 85% since the Funds investment in January.
European Equity Fund Growth of $10,000
[The following table was represented as a line graph in the printed material]
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
11/29/96 $19,192 $20,497
12/31/96 $19,499 $20,894
1/31/97 $19,317 $20,950
2/28/97 $19,289 $21,227
3/31/97 $19,874 $21,913
4/30/97 $19,465 $21,804
5/30/97 $20,391 $22,735
6/30/97 $21,499 $23,872
7/31/97 $22,237 $24,991
8/31/97 $20,811 $23,563
9/30/97 $22,783 $25,848
10/31/97 $21,601 $24,577
*net of fees and expenses
Past performance is not predictive of future performance.
<PAGE>
Pacific Basin Equity Fund
Equity markets throughout the Pacific Basin experienced a difficult year,
hampered by a significant curtailment of economic activity in Japan and by a
series of currency devaluations elsewhere in the region. As measured by the
MSCI-Pacific Index, equity markets in the region declined 19.7% in US dollars
during the year ending October 31, 1997. Worst hit by market declines and
currency depreciation were Thailand and Malaysia. The only major market in the
region to post positive returns last year was India.
The Pacific Basin Equity Fund outperformed the MSCI-Pacific Index on a
relative basis over the last twelve months, declining only 16%. That
outperformance was due, in part, to the Funds underweighted position in
Malaysia, its exposure to India and to the Funds strategy of protecting the
dollar value of its Japanese exposure by defensively hedging the yen. Since
inception, the Pacific Basin Equity Fund has provided its investors with a
compound annual return of 4.8%, well ahead of the MSCI-Pacific Index, which is
flat for the period.
Pacific Basin Equity Fund Growth of $10,000
[The following table was represented as a line graph in the printed material]
DATE Pacific Basin Fund* EMSCI-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
11/29/96 $16,760 $12,776
12/31/96 $16,304 $12,111
1/31/97 $15,440 $11,092
2/28/97 $15,672 $11,323
3/31/97 $15,033 $10,908
4/30/97 $15,191 $11,135
5/30/97 $16,762 $12,224
6/30/97 $17,576 $12,981
7/31/97 $17,547 $12,670
8/31/97 $15,220 $11,414
9/30/97 $15,287 $11,370
10/31/97 $13,853 $9,989
*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
offerof 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.
