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.
21 Milk Street
Boston, Massachusetts 02109
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.
European Equity Fund
Pacific Basin Equity Fund
SEMI-ANNUAL REPORT
April 30, 1999
<PAGE>
THE 59 WALL STREET EUROPEAN EQUITY FUND
PORTFOLIO OF INVESTMENTS
April 30, 1999
(unaudited)
Shares Value
------ ----------
COMMON STOCKS & RIGHTS (98.7%)
FINLAND (3.6%)
MULTI-INDUSTRY
68,100 Nokia AB .......................................... $ 5,248,085
-----------
TOTAL FINLAND ..................................... 5,248,085
-----------
FRANCE (16.6%)
BANKING
47,700 Banque National de Paris CI* ...................... 3,953,118
-----------
CAPITAL EQUIPMENT
26,900 Alcatel Alsthom SA* ............................... 3,302,074
-----------
ENERGY
35,850 Elf Aquitaine SA* ................................. 5,567,176
25,000 Total SA* ......................................... 3,422,736
-----------
8,989,912
-----------
MEDIA
11,350 Canal Plus* ....................................... 3,155,805
-----------
SERVICES
17,400 Accor SA* ......................................... 4,586,150
-----------
TOTAL FRANCE ...................................... 23,987,059
-----------
GERMANY (7.8%)
BANKING
40,290 Deutsche Pfandbrief-und
Hypothekenbank AG* ................................ 3,362,427
-----------
CAPITAL EQUIPMENT
101,900 SAP AG ADR* ....................................... 3,197,113
-----------
INSURANCE
14,894 Allianz AG Registered* ............................ 4,743,808
-----------
TOTAL GERMANY ..................................... 11,303,348
-----------
IRELAND (3.0%)
BANKING
92,800 Allied Irish Banks, Plc ........................... 1,499,919
-----------
CONSUMER NON-DURABLES
1,950,000 Waterford Wedgewood, Plc .......................... 1,895,182
-----------
PHARMACEUTICALS
17,800 Elan Corp., Plc. ADR* ............................. 916,700
-----------
TOTAL IRELAND ..................................... 4,311,801
-----------
ITALY (10.4%)
INSURANCE
132,800 Assiurazioni Generali*............................. 5,166,878
-----------
TELECOMMUNICATIONS
723,200 Telecom Italia Mobile SpA*......................... 4,353,207
529,000 Telecom Italia SpA*................................ 5,596,739
-----------
9,949,946
-----------
TOTAL ITALY ....................................... 15,116,824
-----------
NETHERLANDS (6.9%)
CONSUMER GOODS
64,562 Heineken NV........................................ 3,239,657
-----------
FINANCE
86,100 Fortis Amev N.V.*.................................. 3,065,219
-----------
SERVICES
100,400 Ahold (Kon)NV*..................................... 3,728,100
-----------
TOTAL NETHERLANDS ................................. 10,032,976
-----------
SPAIN (10.1%)
FINANCE
252,900 Banco Bilbao Vizcaya, SA........................... 3,783,037
240,029 Banco Santander SA................................. 5,213,331
-----------
8,996,368
-----------
UTILITIES
127,693 Telefonica de Espana SA
(Rights)*........................................ 118,708
117,693 Telefonica de Espana SA*........................... 5,514,076
-----------
5,632,784
-----------
TOTAL SPAIN........................................ 14,629,152
-----------
SWEDEN (8.0%)
CAPITAL EQUIPMENT
140,600 Atlas Copco........................................ 3,782,885
171,600 Ericsson (LM) Telephone Co.
Class 'B'........................................ 4,505,085
-----------
8,287,970
-----------
CONSUMER DURABLES
166,000 Electrolux AB...................................... 3,364,466
-----------
TOTAL SWEDEN ...................................... 11,652,436
-----------
<PAGE>
THE 59 WALL STREET EUROPEAN EQUITY FUND
PORTFOLIO OF INVESTMENTS
April 30, 1999 (continued)
(unaudited)
Shares Value
------ ----------
SWITZERLAND (6.3%)
BANKING
14,900 Union Bank of Switzerland AG. ..................... $ 5,058,793
------------
PHARMACEUTICALS
2,780 Novartis AG Bearer................................. 4,065,137
------------
TOTAL SWITZERLAND ................................. 9,123,930
------------
UNITED KINGDOM (26.0%)
BANKING
136,500 Barclays, Plc.*.................................... 4,343,441
------------
ENERGY
272,800 British Petroleum Co., Plc......................... 5,178,469
------------
FOOD & BEVERAGES
331,806 Diageo, Plc.*...................................... 3,816,500
------------
INSURANCE
187,100 Prudential Corp.*.................................. 2,660,732
------------
PHARMACEUTICALS
125,700 Glaxo Wellcome, Plc.*.............................. 3,718,708
------------
REAL ESTATE
344,800 British Land Co., Plc.
(The)*.......................................... 3,161,674
191,600 Land Securities, Plc............................... 2,513,590
------------
5,675,264
------------
SERVICES
220,000 BAA, Plc.*......................................... 2,300,441
154,110 Granada Group, Plc.*............................... 3,287,376
121,100 Railtrack Group, Plc.*............................. 2,522,835
------------
8,110,652
------------
TELECOMMUNICATIONS
253,400 British Telecom, Plc.*............................. 4,231,350
------------
TOTAL UNITED KINGDOM .............................. 37,735,116
------------
TOTAL COMMON STOCKS
AND RIGHTS (identified
cost $107,743,037) ............................. 143,140,727
------------
Principal
Amount
---------
TIME DEPOSIT (0.5%)
$744,000 State Street Bank (Cayman)
4.50%, 5/3/99 (identified cost
$744,000)........................................ 744,000
------------
TOTAL INVESTMENTS (identified cost $108,487,037) (a) ... 99.2% $143,884,727
CASH AND OTHER ASSETS LESS LIABILITIES .................. 0.8 1,068,530
----- ------------
NET ASSETS ............................................. 100.0% $144,953,257
===== ============
- -----------
* non-income producing security
(a) The aggregate cost for federal income tax purposes is $108,487,037, the
aggregate gross unrealized appreciation is $37,179,713, and the aggregate
gross unrealized depreciation is $1,782,023, resulting in net unrealized
appreciation of $35,397,690.
See Notes to Financial Statements.
<PAGE>
THE 59 WALL STREET EUROPEAN EQUITY FUND
STATEMENT OF ASSETS AND LIABILITIES
April 30, 1999
(unaudited)
ASSETS:
Investments in securities, at value (identified cost
$108,487,037) (Note 1) ................................. $ 143,884,727
Cash (including $111,543 in foreign currency) ............ 111,913
Receivables for:
Capital stock sold ..................................... 462,579
Dividends .............................................. 387,264
Foreign tax reclaim .................................... 282,192
-------------
Total Assets ....................................... $ 145,128,675
-------------
LIABILITIES:
Payables for:
Capital stock redeemed ................................. 8,000
Investment advisory fee (Note 2) ....................... 77,444
Shareholder servicing/eligible institution fees (Note 2) 29,786
Foreign withholding taxes .............................. 22,531
Administrative fee (Note 2) ............................ 17,872
Accrued expenses and other liabilities ................. 19,785
-------------
Total Liabilities .................................. 175,418
-------------
NET ASSETS ..................................................... $ 144,953,257
=============
Net Assets Consist of:
Paid-in capital .......................................... $ 98,937,650
Distribution in excess of net investment income .......... (327,099)
Accumulated net realized gain ............................ 10,958,509
Net unrealized appreciation .............................. 35,384,197
-------------
Net Assets ..................................................... $ 144,953,257
=============
NET ASSET VALUE AND OFFERING PRICE PER SHARE
($144,953,257 / 3,815,150 shares) ........................ $37.99
======
See Notes to Financial Statements.
<PAGE>
THE 59 WALL STREET EUROPEAN EQUITY FUND
STATEMENT OF OPERATIONS
April 30, 1999
(unaudited)
INVESTMENT INCOME:
Income:
Dividends (net of foreign withholding taxes
of $111,510) ......................................... $ 1,011,241
Interest ................................................ 33,926
-----------
Total Income ........................................ 1,045,167
-----------
Expenses:
Investment advisory fee (Note 2) ........................ 505,077
Shareholder servicing/eligible institution fees (Note 2) 194,260
Administrative fee (Note 2) ............................. 116,556
Custodian fee (Note 2) .................................. 150,919
Directors' fees and expenses (Note 2) ................... 4,277
Miscellaneous expenses .................................. 26,388
-----------
Total Expenses ...................................... 997,477
-----------
Net Investment Income ...................................... 47,690
-----------
NET REALIZED AND UNREALIZED GAIN (Notes 1 and 3):
Net realized gain on investments and foreign exchange
transactions ............................................ 12,233,658
Net change in unrealized appreciation on investments and
foreign exchange translations .......................... 4,806,865
-----------
Net Realized and Unrealized Gain .................... 17,040,523
-----------
Net Increase in Net Assets Resulting from Operations ....... $17,088,213
===========
See Notes to Financial Statements.
<PAGE>
THE 59 WALL STREET EUROPEAN EQUITY FUND
STATEMENT OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
For the
six months ended For the
April 30, 1999 year ended
(unaudited) October 31, 1998
---------- ----------------
<S> <C> <C>
INCREASE (DECREASE) IN NET ASSETS:
Operations:
Net investment income ....................................... $ 47,690 $ 961,898
Net realized gain on investments and foreign exchange
transactions ............................................. 12,233,658 18,182,740
Net change in unrealized appreciation on investments
and foreign currency translations ........................ 4,806,865 8,405,926
------------- -------------
Net increase in net assets resulting from operations ..... 17,088,213 27,550,564
------------- -------------
Dividends and distributions declared (Note 1):
From net investment income .................................. (2,480,869) (1,180,532)
From net realized gains ..................................... (17,676,237) (19,684,595)
------------- -------------
Total dividends and distributions declared ............... (20,157,106) (20,865,127)
------------- -------------
Capital stock transactions (Note 4):
Net proceeds from sales of capital stock .................... 51,023,387 150,544,385
Net asset value of capital stock issued to shareholders in
reinvestment of distributions ............................ 13,820,724 1,850,819
Net cost of capital stock redeemed .......................... (72,378,712) (157,702,565)
------------- -------------
Net decrease in net assets resulting from capital
stock transactions .................................... (7,534,601) (5,307,361)
------------- -------------
Total increase (decrease) in net assets ............... (10,603,494) 1,378,076
NET ASSETS:
Beginning of year .............................................. 155,556,751 154,178,675
------------- -------------
End of year (including distributions in excess of net investment
income and undistributed net investment income of
$327,099 and $2,106,080, respectively) ...................... $ 144,953,257 $ 155,556,751
============= =============
</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 period
<TABLE>
<CAPTION>
For the six
months ended
April 30, For the years ended October 31,
1999 --------------------------------------------------
(unaudited) 1998 1997 1996 1995 1994
--------- ---- ---- ---- ---- ----
<S> <C> <C> <C> <C> <C> <C>
Net asset value, beginning of period.......... $39.05 $38.02 $35.02 $31.95 $31.82 $31.17
Income from investment operations:
Net investment income....................... 0.01(1) 0.42 0.39 0.38(1) 0.45 0.39
Net realized and unrealized gain............ 4.30 6.06 5.29 4.08 2.09 1.80
Less dividends and distributions (Note 1):
From net investment income.................. (1.78) (0.31) (0.41) -- -- (0.25)
From net realized gains..................... (3.59) (5.14) (2.27) (1.39) (2.41) (1.29)
------ ------ ------ ------ ------ ------
Net asset value, end of period................ $37.99 $39.05 $38.02 $35.02 $31.95 $31.82
====== ====== ====== ====== ====== ======
Total return.................................. 12.08% 19.34% 17.28% 14.63% 9.42% 7.35%
Ratios/Supplemental Data:
Net assets, end of period (000's omitted)... $144,953 $155,557 $154,179 $146,350 $116,955 $110,632
Expenses as a percentage of average
net assets:
Expenses paid by Fund..................... 1.28%(3) 1.18% 1.32% 1.23% 1.24% 1.37%
Expenses paid by commissions2 ............ -- 0.01% 0.01% 0.01% 0.05% n/a
Expense offset arrangement................ -- 0.02% 0.03% 0.09% 0.14% n/a
------ ------ ------ ------ ------ ------
Total expenses........................ 1.28%(3) 1.21% 1.36% 1.33% 1.43% 1.37%
Ratio of net investment income to
average net assets........................ 0.06%(3) 0.60% 1.02% 1.16% 1.55% 1.30%
Portfolio turnover rate..................... 24% 56% 82% 42% 72% 124%
</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 Annualized.
See Notes to Financial Statements.
<PAGE>
THE 59 WALL STREET PACIFIC BASIN EQUITY FUND
PORTFOLIO OF INVESTMENTS
April 30, 1999
(unaudited)
Shares Value
------- -----------
COMMON STOCKS & WARRANTS (95.6%)
AUSTRALIA (5.5%)
CONSUMER GOODS
310,000 Coca-Cola Amatil, Ltd.*.............................. $ 1,471,282
-----------
SERVICES
1,045,000 Pasminco Ltd......................................... 1,168,683
-----------
TOTAL AUSTRALIA ..................................... 2,639,965
-----------
INDIA (1.5%)
CONSUMER DURABLES
11,700 Bajaj Auto, Ltd.*.................................... 142,183
-----------
FINANCE
361,050 Industrial Credit & Investment
Corp. of India, Ltd.*.............................. 413,448
-----------
MATERIALS
244,000 Indo Gulf Fertilisers and
Chemicals Corp., Ltd. GDR+. ....................... 134,200
6,574 Reliance Industries, Ltd. GDR ....................... 19,819
-----------
154,019
-----------
TOTAL INDIA ......................................... 709,650
-----------
JAPAN (73.3%)
CAPITAL GOODS/DURABLES
97,000 Matsushita Electric Works............................ 1,025,883
210 Matsushita Electric Works
(Warrants)*........................................ 65,625
-----------
1,091,508
-----------
CHEMICALS
38,000 Shin-Etsu Chemical Co.*.............................. 1,209,178
-----------
COMPUTER SOFTWARE
30,900 Meitec Corp.......................................... 1,003,952
-----------
CONSUMER DURABLES
48,000 Makita Corp.......................................... 515,291
-----------
CONSUMER ELECTRONICS
28,000 Canon, Inc........................................... 684,642
6,700 Sony Corp............................................ 625,565
60 Sony Corp. (Warrants)*............................... 144,000
-----------
1,454,207
-----------
CONSUMER GOODS
23,000 Honda Motor Co., Ltd................................. 1,013,063
80,000 Kirin Brewery Co., Ltd............................... 904,371
36,000 Shimano, Inc......................................... 916,429
78,000 Suzuki Motor Corp.................................... 1,110,367
-----------
3,944,230
-----------
CONSUMER NON-DURABLES
14,500 Nintendo Co., Ltd.................................... 1,351,407
100,000 Nintendo Co., Ltd. (Warrants)*....................... 197,288
22,000 Sega Enterprises..................................... 391,475
75,000 Shiseido Co.......................................... 1,180,707
-----------
3,120,877
-----------
ELECTRIC COMPONENTS
73,000 Minebea Co., Ltd..................................... 706,038
10,000 Rohm Co., Ltd........................................ 1,205,828
12,000 TDK Corp............................................. 907,386
-----------
2,819,252
-----------
ELECTRONIC TECHNOLOGY
10,000 Tokyo Electron, Ltd.................................. 569,419
-----------
FINANCE
26,000 Jafco, Ltd........................................... 1,301,960
14,100 Orix Corp............................................ 1,134,659
-----------
2,436,619
-----------
MATERIALS
35,000 Bridgestone Corp..................................... 937,866
58,000 Kurita Water Industries, Ltd......................... 932,507
443,000 Mitsubishi Materials*................................ 1,064,654
193,000 Sumitomo Metal & Mining.............................. 875,950
188,200 Tokyo Steel Manufacturing
Co., Ltd........................................... 1,005,456
-----------
4,816,433
-----------
<PAGE>
THE 59 WALL STREET PACIFIC BASIN EQUITY FUND
PORTFOLIO OF INVESTMENTS
April 30, 1999 (continued)
(unaudited)
Shares Value
------ -----------
MULTI-INDUSTRY
427,536 Prospect Japan Fund*................................. $ 2,607,970
11,000 Softbank Corp........................................ 1,463,658
-----------
4,071,628
-----------
PHARMACEUTICALS
48,000 Kissei Pharmaceutical
Co., Ltd........................................... 1,022,944
41,000 Sankyo Co., Ltd...................................... 860,032
58,000 Santen Pharmaceutical
Co., Ltd........................................... 1,053,927
18,000 Yamanouchi Pharmaceutical
Co., Ltd........................................... 569,754
110 Yamanouchi Pharmaceutical
Co., Ltd. (Warrants)*.............................. 246,125
-----------
3,752,782
-----------
PRECISION INSTRUMENTS
1,000 Hoya Corp............................................ 52,336
-----------
REAL ESTATE
21,400 Oriental Land Co., Ltd............................... 1,265,148
-----------
RETAIL
13,000 Ito-Yokato Co., Ltd.................................. 797,940
-----------
SERVICES
15,900 Benesse Corp......................................... 1,326,110
98,000 Daikin Industries, Ltd............................... 1,022,509
-----------
2,348,619
-----------
TOTAL JAPAN ......................................... 35,269,419
-----------
SINGAPORE (6.2%)
CONSUMER GOODS
380,000 Fraser & Neave....................................... 1,680,127
-----------
MATERIALS
126,800 Asia Pulp & Paper, Ltd. ADR*......................... 1,331,400
-----------
TOTAL SINGAPORE ..................................... 3,011,527
-----------
SOUTH KOREA (9.1%)
ELECTRIC COMPONENTS
25,383 Samsung Electronics Co............................... 1,952,046
-----------
MATERIALS
49,100 Pohang Iron & Steel Ltd., ADR........................ 1,264,325
-----------
UTILITIES
70,000 Korea Electric Power Corp. ADR*...................... 1,155,000
-----------
TOTAL SOUTH KOREA ................................... 4,371,371
-----------
TOTAL COMMON STOCKS
AND WARRANTS (identified
cost $ 34,916,995 ) .............................. 46,001,932
-----------
Principal
Amount
---------
TIME DEPOSIT (5.1%)
$2,474,000 State Street Bank (Cayman)
4.50%, 5/3/99 (identified cost
$2,474,000)........................................ 2,474,000
-----------
TOTAL INVESTMENTS (identified cost $37,390,995) ... 100.7% $48,475,932
CASH AND OTHER ASSETS IN EXCESS OF LIABILITIES ....... (0.7) (357,564)
----- -----------
NET ASSETS ........................................... 100.0% $48,118,368
===== ===========
- -----------
* non-income producing security.
+ Rule 144A security.
(a) The aggregate cost for federal income tax purposes is $37,390,995, the
aggregate gross unrealized appreciation is $12,124,757, and the aggregate
gross unrealized depreciation is $1,039,820, resulting in net unrealized
depreciation of $11,084,937.
See Notes to Financial Statements.
<PAGE>
THE 59 WALL STREET PACIFIC BASIN FUND
STATEMENT OF ASSETS AND LIABILITIES
April 30, 1999
(unaudited)
ASSETS:
Investments in securities, at value (identified cost
$37,390,995) (Note 1) ................................ $ 48,475,932
Cash (including $14,184 in foreign currency) ............ 14,884
Receivables for:
Foreign exchange contracts sold (Note 5) ............. 1,306,285
Dividends ............................................ 74,992
Capital stock sold ................................... 72,848
------------
Total Assets ............................................ $ 49,944,941
------------
LIABILITIES:
Payables for:
Investments purchased ................................ 1,593,830
Capital stock redeemed ............................... 146,786
Investment advisory fee (Note 2) ..................... 24,962
Custody fee .......................................... 16,205
Foreign withholding taxes ............................ 11,088
Shareholder servicing/eligible institution fees
(Note 2) ........................................... 9,601
Administrative fee (Note 2) .......................... 5,760
Accrued expenses and other liabilities ............... 18,341
------------
Total Liabilities ....................................... 1,826,573
------------
NET ASSETS .................................................... $ 48,118,368
============
Net Assets Consist of:
Paid-in capital ......................................... $ 71,966,878
Distributions in excess of net investment income ........ (617,818)
Accumulated net realized loss ........................... (35,623,721)
Net unrealized appreciation ............................. 12,393,029
------------
Net Assets .................................................... $ 48,118,368
============
NET ASSET VALUE AND OFFERING PRICE PER SHARE
($48,118,368 / 1,651,105 shares) ........................ $29.14
======
See Notes to Financial Statements.
<PAGE>
THE 59 WALL STREET PACIFIC BASIN FUND
STATEMENT OF OPERATIONS
April 30, 1999
(unaudited)
INVESTMENT INCOME
Income:
Dividends (net of foreign withholding taxes of $29,071) $ 161,878
Interest ............................................... 15,195
------------
Total Income ........................................ 177,073
------------
Expenses:
Investment advisory fee (Note 2) ....................... 124,928
Shareholder servicing/eligible institution fees (Note 2) 48,049
Administrative fee (Note 2) ............................ 28,829
Custodian fee .......................................... 68,011
Professional fees ...................................... 19,358
Directors' fees and expenses (Note 2) .................. 3,369
Miscellaneous expenses ................................. 13,332
------------
Total Expenses ........................................... 305,876
Fees paid indirectly (Note 3) ....................... (58)
------------
Net Expenses ........................................ 305,818
------------
Net Investment Loss ....................................... (128,745)
------------
NET REALIZED AND UNREALIZED GAIN (LOSS) (Notes 1 and 3)
Net realized gain on investments and foreign exchange
transactions ............................................ 839,045
Net change in unrealized depreciation on investments and
foreign exchange translations ........................... 13,946,497
------------
Net Realized and Unrealized Gain ................... 14,803,542
------------
Net Increase in Net Assets Resulting from Operations ...... $ 14,674,797
============
See Notes to Financial Statements.
<PAGE>
THE 59 WALL STREET PACIFIC BASIN FUND
STATEMENT OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
For the
six months ended For the
April 30, 1999 year ended
(unaudited) October 31, 1998
-------------- --------------
<S> <C> <C>
INCREASE (DECREASE) IN NET ASSETS:
Operations:
Net investment loss .......................................... $ (128,745) $ (315,697)
Net realized gain (loss) on investments and foreign
exchange transactions ...................................... 839,045 (20,966,434)
Net change in unrealized depreciation on
investments and foreign currency translations .............. 13,964,497 15,355,772
------------- -------------
Net increase (decrease) in net assets resulting from
operations ............................................... 14,674,797 (5,926,359)
------------- -------------
Dividends and distributions declared (Note 1):
From net investment income ................................... -- (1,028,455)
In excess of net investment income ........................... -- (2,160,330)
From net realized gains ...................................... -- --
In excess of net realized gains .............................. -- --
------------- -------------
Total dividends and distributions declared ................. -- (3,188,785)
------------- -------------
Capital stock transactions (Note 4):
Net proceeds from sales of capital stock ..................... 36,077,860 57,199,326
Net asset value of capital stock issued to shareholders in
reinvestment of distributions .............................. -- 147,105
Net cost of capital stock redeemed ........................... (35,264,665) (117,907,402)
------------- -------------
Net increase (decrease) in net assets resulting from capital
stock transactions ....................................... 813,195 (60,560,971)
------------- -------------
Total increase (decrease) in net assets .................... 15,487,992 (69,676,115)
NET ASSETS:
Beginning of period ............................................. 32,630,376 102,306,491
------------- -------------
End of period ................................................... $ 48,118,368 $ 32,630,376
============= =============
</TABLE>
See Notes to Financial Statements.
<PAGE>
THE 59 WALL STREET PACIFIC BASIN FUND
FINANCIAL HIGHLIGHTS
Selected per share data and ratios for a share outstanding throughout each year
<TABLE>
<CAPTION>
For the six
months ended
April 30, For the years ended October 31,
1999 ------------------------------------------------------
(unaudited) 1998 1997 1996 1995 1994
--------- ---- ---- ---- ---- ----
<S> <C> <C> <C> <C> <C> <C>
Net asset value, beginning of period.......... $20.31 $24.52 $30.19 $29.88 $39.85 $39.87
Income from investment operations:
Net investment income (loss)................ (0.91)(1) (0.20) 0.00(1),(2) 0.051 0.11 0.14
Net realized and unrealized gain (loss)..... 9.74 (2.39) (4.69) 1.62 (4.50) 1.26
Less dividends and distributions (Note 1):
From net investment income.................. -- (0.52) (0.00)(2) (0.86) (0.00)(2) (0.14)
In excess of net investment income.......... -- (1.10) (0.25) (0.50) -- --
From net realized gains..................... -- -- (0.28) -- (5.58) (1.28)
In excess of net realized gains............. -- -- (0.45) -- -- --
------ ------ ------ ------ ------ ------
Net asset value, end of period................ $29.14 $20.31 $24.52 $30.19 $29.88 $39.85
====== ====== ====== ====== ====== ======
Total return.................................. 43.48% (10.78)% (16.03)% 5.65% (10.62)% 3.48%
Ratios/Supplemental Data:
Net assets, end of period (000's omitted)... $48,118 $32,630 $102,306 $150,685 $114,932 $120,469
Expenses as a percentage of average
net assets:
Expenses paid by Fund..................... 1.59%(3) 1.44% 1.19% 1.13% 1.24% 1.29%
Expenses paid by commissions(4)........... -- -- 0.01% 0.01% 0.05% n/a
Expense offset arrangement................ -- (5) 0.18% 0.06% 0.16% 0.14% n/a
------ ------ ------ ------ ------ ------
Total expenses........................ 1.59%(3) 1.62% 1.26% 1.30% 1.43% 1.29%
Ratio of net investment income (loss) to
average net assets........................ (0.67)%(3) (0.73)% 0.00% 0.16% 0.53% 0.39%
Portfolio turnover rate..................... 50% 91% 63% 58% 82% 86%
</TABLE>
- ----------------
1 Calculated using average shares outstanding for the year.
2 Less than $0.01 per share.
3 Annualized.
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.
5 Less than 0.01%.
See Notes to Financial Statements.
<PAGE>
THE 59 WALL STREET EUROPEAN EQUITY FUND
THE 59 WALL STREET PACIFIC BASIN EQUITY FUND
NOTES TO FINANCIAL STATEMENTS
(unaudited)
1. Organization and Significant Accounting Policies. The 59 Wall Street
European Equity Fund and The 59 Wall Street Pacific Basin Equity Fund
(individually the "Fund" or collectively the "Funds") are separate
non-diversified series of The 59 Wall Street Fund, Inc. (the "Corporation")
which is registered under the Investment Company Act of 1940, as amended. The
Corporation is an open-ended management investment company organized under the
laws of the State of Maryland on July 19, 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
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 transactions. The Funds do not isolate that portion of
realized gain or loss on investments resulting from changes in foreign
exchange rates on investments from the fluctuations arising from the
changes in market prices of such investments. Such fluctuations are
included with the net realized and unrealized gain or loss from
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 Fund's
books and the U.S. dollar equivalents of the amounts actually
<PAGE>
THE 59 WALL STREET EUROPEAN EQUITY FUND
THE 59 WALL STREET PACIFIC BASIN EQUITY FUND
NOTES TO FINANCIAL STATEMENTS (continued)
(unaudited)
received or paid. Net unrealized appreciation or depreciation on foreign
currency translations arise from changes in the value of the assets and
liabilities, excluding investments in securities, at fiscal year end,
arising from changes in the exchange rate.
C. Forward Foreign Currency Exchange Contracts. The Funds may enter
into forward foreign currency exchange contracts ("contracts") in
connection with planned purchases or sales of securities, to hedge the
U.S. dollar value of portfolio securities denominated in a particular
currency, or to increase or shift its exposure to a currency other than
U.S. dollars. The Funds have no specific limitation on the percentage of
assets which may 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 the 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
form generally accepted accounting principles, the basis on which these
financial statements are prepared. Accordingly, the amounts of net
investment income and net realized gain reported on these financial
statements may differ from that reported on each Fund's tax return due to
certain book-to-tax differences such as losses deferred due to "wash sale"
transactions, utilization of capital loss carryforwards and the
recognition of unrealized gains or losses on open forward foreign currency
exchange contracts and passive foreign investment companies at year-end.
These differences may result in temporary over-distributions for financial
statement purposes and are classified as distributions in excess of
accumulated net realized gains or net investment income. Permanent
differences are reclassified on the statement of assets and liabilities
based upon their tax classification. As such, the character of
distributions to shareholders reported in the Financial Highlights table
may differ from that reported to shareholders on Form 1099-DIV. These
distributions do not constitute a return of capital.
F. Dividends and Distributions to Shareholders. Dividends and
distributions to shareholders are recorded on the ex-dividend date.
2. Transactions with Affiliates.
Investment Advisory Agreement. The Corporation has an investment advisory
agreement with Brown Brothers Harriman & Co. (the "Adviser") for which the
Adviser receives a fee from each Fund calculated daily and paid monthly at an
annual rate equivalent to 0.65% of each Fund's average daily net assets. For the
six months ended April 30, 1999, the European Equity Fund and the Pacific Basin
Fund incurred $505,077 and $124,928, respectively, for advisory services.
<PAGE>
THE 59 WALL STREET EUROPEAN EQUITY FUND
THE 59 WALL STREET PACIFIC BASIN EQUITY FUND
NOTES TO FINANCIAL STATEMENTS (continued)
(unaudited)
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 sub administration services agreement with 59 Wall Street
Administrators, Inc. for which 59 Wall Street Administrators, Inc. receives such
compensation as is from time to time agreed upon, but not in excess of the
amount paid to the Administrator. For the six months ended April 30, 1999, the
European Equity Fund and the Pacific Basin Equity Fund incurred $116,556 and
$28,829, respectively, for administrative services.
Shareholder Servicing/Eligible Institution Agreement. The Corporation has
a shareholder servicing agreement and an eligible institution agreement with
Brown Brothers Harriman & Co. for which Brown Brothers Harriman & Co. receives a
fee from each Fund calculated daily and paid monthly at an annual rate
equivalent to 0.25% if each Fund's average daily net assets. For the six months
ended April 30, 1999, the European Equity Fund and the Pacific Basin Equity Fund
incurred $194,260 and $48,049, respectively, for such services.
Board of Directors' Fee. Each Director receives an annual fee as well as
reimbursement for reasonable out-of-pocket expenses from each Fund. For the six
months ended April 30, 1999, the European Equity Fund and the Pacific Basin
Equity Fund incurred $4,277 and $3,369, respectively, for these fees.
3. Investment Transactions. For the six months ended April 30, 1999, 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.......................... $37,500,884 $19,505,822
Sales.............................. $64,509,151 $20,499,648
There were no purchases or sales of U.S. government obligations during the
year. Custody fees for the Pacific Basin Equity Fund was further reduced by $58
as a result of an expense offset arrangement with the Fund's custodian.
4. Capital Stock. The Corporation is permitted to issue 2,500,000,000
shares of capital stock, par value $.001 per share, of which 25,000,000 shares
have been classified as shares of each of the Funds. Transactions in shares of
capital stock were as follows:
<TABLE>
<CAPTION>
European Equity Fund Pacific Basin Equity Fund
------------------------- --------------------------
For the six For the year For the six For the year
months ended ended October months ended ended October
April 30, 1999 31, 1998 April 30, 1999 31, 1998
-------------- ------------- -------------- -------------
<S> <C> <C> <C> <C>
Capital stock sold............................. 1,352,764 3,734,540 1,549,539 2,679,150
Capital stock issued in connection with
reinvestment of dividends and
distributions............................... 391,411 55,002 -- 7,079
Capital stock repurchased...................... (1,912,625) (3,861,404) (1,505,317) (5,251,617)
---------- ---------- ---------- ----------
Net increase (decrease)........................ (168,450) (71,862) 44,222 (2,565,388)
========== ========== ========== ==========
</TABLE>
5. Financial Instruments with Off-Balance Sheet Risk. At April 30, 1999,
the Pacific Basin Equity Fund had outstanding forward foreign currency exchange
contracts as a hedge to protect against possible changes
<PAGE>
THE 59 WALL STREET EUROPEAN EQUITY FUND
THE 59 WALL STREET PACIFIC BASIN EQUITY FUND
NOTES TO FINANCIAL STATEMENTS (continued)
(unaudited)
in the 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 Statements of
Assets and Liabilities. The Funds bear risk of an unfavorable change in the
foreign exchange rate underlying the forward contracts.
Forward foreign currency exchange contracts open at April 30, 1999:
Contracts In Exchange Deliver Unrealized
to deliver For Date Appreciation
-------- ---------- ------ ------------
Pacific Basin Equity
Fund:
JPY 3,600,000,000 $31,645,017 06/17/99 $1,306,285
----------
6. Federal Income Tax Status. At October 31, 1998, the Pacific Basin
Equity Fund, for federal income taxes purposes, had a capital loss carryforward
of $39,545,853 which may be applied against any net taxable realized gain of
each succeeding year until the earlier of it utilization or expiration on
October 31, 2005.
