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PROSPECTUS
The 59 Wall Street European Equity Fund
The 59 Wall Street Pacific Basin Equity Fund
The 59 Wall Street International Equity Fund
21 Milk Street, Boston, Massachusetts 02109
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The European Equity Fund, the Pacific Basin Equity Fund and the
International Equity Fund are separate series of The 59 Wall Street Fund, Inc.
Shares of each Fund are offered by this Prospectus.
Each of the European Equity Fund, Pacific Basin Equity Fund and
International Equity Fund invests all of its assets in the European Equity
Portfolio, Pacific Basin Equity Portfolio and International Equity Portfolio,
respectively. Brown Brothers Harriman & Co. is the Investment Adviser for the
European Equity Portfolio, the Pacific Basin Equity Portfolio and the
International Equity Portfolio and the Administrator and Shareholder Servicing
Agent of each Fund. Shares of each Fund are offered at net asset value without a
sales charge.
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Neither The Securities And Exchange Commission Nor Any State Securities
Commission Has Approved Or Disapproved Of These Securities Or
Passed Upon The Adequacy Or Accuracy Of This Prospectus.
Any Representation To The Contrary Is A Criminal Offense.
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The date of this Prospectus is March 1, 2000.
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TABLE OF CONTENTS
Page
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Investment Objective ..................................................... 3
Investment Strategies .................................................... 3
Principal Risk Factors ................................................... 4
Fund Performance ......................................................... 6
Fees and Expenses of the Funds ........................................... 9
Investment Adviser ....................................................... 10
Shareholder Information .................................................. 10
Financial Highlights ..................................................... 13
Additional Information ................................................... 15
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INVESTMENT OBJECTIVE
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The investment objective of each Fund is to provide investors with
long-term maximization of total return, primarily through capital appreciation.
INVESTMENT STRATEGIES
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European Equity Fund
The European Equity Fund invests all of its assets in the European Equity
Portfolio, an investment company that has the same objective as the Fund. Under
normal circumstances the Investment Adviser fully invests the assets of the
European Equity Portfolio in equity securities of companies based in the
European Union (Belgium, Denmark, France, Germany, Greece, Ireland, Italy,
Luxembourg, Netherlands, Portugal, Spain, United Kingdom), as well as Austria,
Czech Republic, Finland, Hungary, Norway, Poland, Romania, Sweden, Switzerland,
Slovakia and Turkey.
Pacific Basin Equity Fund
The Pacific Basin Equity Fund invests all of its assets in the Pacific
Basin Equity Portfolio, an investment company that has the same objective as the
Fund. Under normal circumstances the Investment Adviser fully invests the assets
of the Pacific Basin Equity Portfolio in equity securities of companies based in
Pacific Basin countries, including Australia, Bangladesh, China, Hong Kong,
India, Indonesia, Japan, Malaysia, New Zealand, Pakistan, Philippines,
Singapore, Sri Lanka, South Korea, Taiwan and Thailand.
International Equity Fund
The International Equity Fund invests all of its assets in the
International Equity Portfolio, an investment company that has the same
objective as the Fund. Under normal circumstances the Investment Adviser fully
invests the assets of the International Equity Portfolio in equity securities of
companies based outside the United States and Canada in the developed markets of
the world. These markets include Australia, Austria, Belgium, Denmark, Finland,
France, Germany, Hong Kong, Ireland, Italy, Japan, Malaysia, Netherlands, New
Zealand, Norway, Portugal, Singapore, Spain, Sweden, Switzerland and United
Kingdom.
Each Fund
Although the Investment Adviser expects to invest the assets of each
Portfolio primarily in common stocks, it may also purchase other securities with
equity characteristics, including securities convertible into common stock,
rights and warrants. The Investment Adviser may purchase these equity securities
directly or in the form of American Depositary Receipts, Global Depositary
Receipts or other similar securities representing securities of foreign-based
companies. Although the Investment Adviser invests primarily in equity
securities which are traded on foreign or domestic national securities
exchanges, the Investment Adviser may also purchase equity securities which are
traded in foreign or domestic over-the-counter markets. The Investment Adviser
may invest in securities of appropriate investment companies in order to obtain
participation in markets or market sectors which restrict foreign investment or
to obtain more favorable investment terms.
The Investment Adviser seeks to add value in international markets
primarily through stock selection, with regional/country allocation used only as
a risk management tool. The Investment Adviser's stock selection process places
emphasis on large capitalization and globally competitive companies. The non-US
equity research universe is comprised of approximately 300 companies that have a
minimum market capitalization of $2 billion and that have strong underlying
fundamentals such as leading industry position, effective management,
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competitive products and services, high or improving return on investment and a
sound financial structure.
A bottom-up analysis of companies in the universe identifies earnings
growth potential or, where appropriate, improved return on equity/assets.
Simultaneously, quantitative tools such as discounted cash flow models (DCF),
economic value-added analysis (EVA), and cash flow return on investment (CFROI),
are applied to assess current and future value, and to differentiate companies
within the universe. This process ultimately produces an Attractive Investment
Opportunities List with issues appropriate for inclusion in each Portfolio.
Portfolio construction in each Portfolio is the result of selecting issues
from the Attractive Opportunities List which, when combined with regional
allocation policies, benchmark considerations, and risk management, will produce
a well-diversified portfolio expected to outperform its benchmark over a 12-18
month time horizon.
The Investment Adviser buys and sells securities denominated in currencies
other than the U.S. dollar, and interest, dividends and sale proceeds are
received in currencies other than the U.S. dollar. The Investment Adviser enters
into foreign currency exchange transactions from time to time to convert to and
from different foreign currencies and to convert foreign currencies to and from
the U.S. dollar. Futures contracts on stock indexes may be entered into for a
Portfolio solely as a hedge against changes in the market value of portfolio
securities or securities intended to be purchased. Forward foreign exchange
contracts may be entered into on behalf of a Portfolio in order to protect the
dollar value of securities denominated in foreign currencies that are held or
intended to be purchased.
PRINCIPAL RISK FACTORS
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The principal risks of investing in each Fund and the circumstances
reasonably likely to adversely affect an investment are described below. The
share price of each Fund changes daily based on market conditions and other
factors. A shareholder may lose money by investing in the Funds.
The principal risks of investing in the Funds are:
o Market Risk:
This is the risk that the price of a security will fall due to changing
economic, political or market conditions, or due to a company's individual
situation.
o Foreign Investment Risk:
Investing in equity securities of foreign-based companies involves risks
not typically associated with investing in equity securities of companies
organized and operated in the United States.
Changes in political or social conditions, diplomatic relations,
confiscatory taxation, expropriation, nationalization, limitation on the removal
of funds or assets, or imposition of (or change in) exchange control or tax
regulations may adversely affect the value of such investments. Changes in
government administrations or economic or monetary policies in the United States
or abroad could result in appreciation or depreciation of portfolio securities
and could favorably or unfavorably affect the operations of the European Equity
Portfolio, Pacific Basin Equity Portfolio or International Equity Portfolio. The
economies of individual foreign nations differ from the U.S. economy, whether
favorably or unfavorably, in areas such as growth of gross domestic product,
rate of inflation, capital reinvestment, resource self-sufficiency and balance
of payments position. It may be more difficult to obtain and enforce a judgment
against a foreign company. Dividends and interest paid by foreign issuers may be
subject to withholding and other foreign taxes which may decrease the net return
on foreign investments as compared to dividends and interest paid to other funds
by domestic companies.
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In general, less information is publicly available with respect to
foreign-based companies than is available with respect to U.S. companies. Most
foreign-based companies are also not subject to the uniform accounting and
financial reporting requirements applicable to companies based in the United
States.
In addition, while the volume of transactions effected on foreign stock
exchanges has increased in recent years, in most cases it remains appreciably
below that of the New York Stock Exchange. Accordingly, foreign investments are
less liquid and their prices are more volatile than comparable investments in
securities of U.S. companies. Moreover, the settlement periods for foreign
securities, which are often longer than those for securities of U.S. companies,
may affect portfolio liquidity. In buying and selling securities on foreign
exchanges, fixed commissions are normally paid that are generally higher than
the negotiated commissions charged in the United States. In addition, there is
generally less government supervision and regulation of securities exchanges,
brokers and companies in foreign countries than in the United States.
The foreign investments made by the Investment Adviser are in compliance
with the currency regulations and tax laws of the United States and foreign
governments. There may also be foreign government regulations and laws which
restrict the amounts and types of foreign investments.
Because foreign securities generally are denominated and pay dividends or
interest in foreign currencies, and each Portfolio holds various foreign
currencies from time to time, the value of their respective net assets as
measured in U.S. dollars is affected favorably or unfavorably by changes in
exchange rates. Each Portfolio also incurs costs in connection with conversion
between various currencies.
o Developing Countries:
The Investment Adviser may invest the assets of the European Equity
Portfolio and the International Equity Portfolio in securities of issuers based
in developing countries. The Investment Adviser may invest a substantial portion
of the assets of the Pacific Basin Equity Portfolio in the securities of issuers
based in developing countries. Investments in securities of issuers in
developing countries may involve a high degree of risk and many may be
considered speculative. These investments carry all of the risks of investing in
securities of foreign issuers outlined in this section to a heightened degree.
These heightened risks include (i) greater risks of expropriation, confiscatory
taxation, nationalization, and less social, political and economic stability;
(ii) the small current size of the markets for securities of issuers in
developing countries and the currently low or non-existent volume of trading,
resulting in lack of liquidity and in price volatility; (iii) certain national
policies which may restrict the Portfolios' investment opportunities including
restrictions on investing in issuers or industries deemed sensitive to relevant
national interests; and (iv) the absence of developed legal structures governing
private or foreign investment and private property.
o Diversification Risk:
Each Fund and each Portfolio is classified as "non-diversified" for
purposes of the Investment Company Act of 1940, as amended, which means that it
is not limited by that Act with regard to the portion of its assets that may be
invested in the securities of a single issuer. The Portfolio is however limited
with respect to such assets by certain requirements of federal tax law. The
possible assumption of large positions in the securities of a small number of
issuers may cause performance to fluctuate to a greater extent than that of a
diversified investment company as a result of changes in the financial condition
or in the market's assessment of the issuers.
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Investments in the Funds are neither insured nor guaranteed by the U.S.
Government. Shares of the Funds are not deposits or obligations of, or
guaranteed by, Brown Brothers Harriman & Co. or any other bank, and the shares
are not insured by the Federal Deposit Insurance Corporation, the Federal
Reserve Board or any other federal, state or other governmental agency.
FUND PERFORMANCE
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The charts and tables below give an indication of the Funds' risks. The
charts show changes in the Funds' performance from year to year. The tables show
how the Funds' average annual returns for the periods indicated compare to those
of a broad measure of market performance.
When you consider this information, please remember that a Fund's
performance in past years is not an indication of how that Fund will do in the
future.
EUROPEAN EQUITY FUND
Total Return (% per calendar year)
[The following information was depicted as a line chart in the printed material]
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C> <C> <C> <C>
1991 1992 1993 1994 1995 1996 1997 1998 1999
- ---- ---- ---- ---- ---- ---- ---- ---- ----
9.25 7.53 27.12 -3.93 16.49 19.25 15.28 24.17 21.42
</TABLE>
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Highest and Lowest Return
(Quarterly 1991-1999)
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Return Quarter Ending
Highest 22.08% 12/31/99
Lowest (15.55)% 9/30/98
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Average Annual Total Returns
(through December 31, 1999)
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1 Year 5 Years Life of Fund
(Since 10/31/90)
European Equity Fund 21.42% 19.28% 14.24%
MSCI-Europe 15.90% 22.12% 15.85%
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PACIFIC BASIN EQUITY FUND
Total Return (% per calendar year)
[The following information was depicted as a line chart in the printed material]
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C> <C> <C> <C>
1991 1992 1993 1994 1995 1996 1997 1998 1999
---- ---- ---- ---- ---- ---- ---- ---- ----
13.64 6.15 74.90 -21.50 3.49 -0.71 -20.13 4.91 120.16
</TABLE>
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Highest and Lowest Return
(Quarterly 1991-1999)
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Return Quarter Ending
Highest 36.69% 12/31/93
Lowest (16.42)% 3/31/94
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Average Annual Total Returns
(through December 31, 1999)
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1 Year 5 Years Life of Fund
(Since 10/31/90)
Pacific Basin Equity Fund 120.16% 13.64% 12.77%
MSCI-Pacific 57.63% 2.48% 4.19%
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INTERNATIONAL EQUITY FUND
Total Return (% per calendar year)
[The following information was depicted as a line chart in the printed material]
1996 1997 1998 1999
---- ---- ---- ----
8.05 1.05 16.17 44.60
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Highest and Lowest Return
(Quarterly 1995-1999)
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Return Quarter Ending
Highest 24.28% 12/31/99
Lowest (13.77)% 9/30/98
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Average Annual Total Returns
(through December 31, 1999)
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1 Year Life of Portfolio
(Since 4/1/95)
International Equity Fund 44.60% 15.19%
MSCI-EAFE 26.97% 13.11%
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Historical performance information for the Fund for any period or portion
thereof prior to its commencement of operations (6/6/97), is that of the
Portfolio as adjusted to reflect all fees and expenses of the Fund.
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FEES AND EXPENSES OF THE FUNDS
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The tables below describe the fees and expenses that an investor may pay
if that investor buys and holds shares of the Funds.
SHAREHOLDER FEES
(Fees paid directly from an investor's account)
<TABLE>
<CAPTION>
European Pacific Basin International
Equity Fund Equity Fund Equity Fund
----------- ----------- -----------
<S> <C> <C> <C>
Maximum Sales Charge (Load)
Imposed on Purchases .............................................. None None None
Maximum Deferred Sales Charge (Load) .............................. None None None
Maximum Sales Charge (Load)
Imposed on Reinvested Dividends ................................... None None None
Redemption Fee .................................................... None None None
Exchange Fee ...................................................... None None None
</TABLE>
ANNUAL FUND OPERATING EXPENSES(1)
(Expenses that are deducted from Fund assets as a percentage of average net
assets)
<TABLE>
<CAPTION>
European Pacific Basin International
Equity Fund Equity Fund Equity Fund
----------- ----------- -----------
<S> <C> <C> <C>
Management Fees ................................................... 0.65% 0.65% 0.65%
Distribution (12b-1) Fees ......................................... None None None
Other Expenses
Administration Fee ............................................. 0.16% 0.16% 0.16%
Shareholder Servicing/Eligible Institution Fee ................. 0.25 0.25 0.25
Other Expenses ................................................. 0.28 0.69 0.34 0.75 0.44(2) 0.85
---- ---- ---- ---- ---- ----
Total Annual Fund Operating Expenses .............................. 1.34%(3) 1.40%(3) 1.50%
==== ==== ====
</TABLE>
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(1) The expenses shown for each Fund include the expenses of its corresponding
Portfolio.
(2) These expenses are paid pursuant to expense payment arrangements.
(3) The annual fund operating expenses have been restated for the past fiscal
year for purposes of this table to reflect fees currently in effect.
EXAMPLE(4)
This example is intended to help an investor compare the cost of investing
in the Funds to the cost of investing in other mutual funds. The example assumes
that an investor invests $10,000 in a Fund for the time periods indicated and
then sells all of his shares at the end of those periods. The example also
assumes that an investment has a 5% return each year and that the Funds'
operating expenses remain the same as shown in the table above. Although actual
costs on an investor's investment may be higher or lower, based on these
assumptions the investor's costs would be:
<TABLE>
<CAPTION>
European Pacific Basin International
Equity Fund Equity Fund Equity Fund
----------- ----------- -----------
<S> <C> <C> <C>
1 year ................................ $ 136 $ 143 $ 153
3 years ............................... $ 425 $ 443 $ 474
5 years ............................... $ 734 $ 766 $ 818
10 years ............................... $1,613 $1,680 $1,791
</TABLE>
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(4) The example above reflects the expenses of each Fund and its corresponding
Portfolio.
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INVESTMENT ADVISER
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The Investment Adviser to each Portfolio is Brown Brothers Harriman & Co.,
Private Bankers, a New York limited partnership established in 1818. The firm is
subject to examination and regulation by the Superintendent of Banks of the
State of New York and by the Department of Banking of the Commonwealth of
Pennsylvania. The firm is also subject to supervision and examination by the
Commissioner of Banks of the Commonwealth of Massachusetts. The Investment
Adviser is located at 59 Wall Street, New York, NY 10005.
The Investment Adviser provides investment advice and portfolio management
services to each Portfolio. Subject to the general supervision of the Trustees
of each Portfolio, the Investment Adviser makes the day-to-day investment
decisions for each Portfolio, places the purchase and sale orders for the
portfolio transactions of each Portfolio, and generally manages each Portfolio's
investments. The Investment Adviser provides a broad range of investment
management services for customers in the United States and abroad. At December
31, 1999, it managed total assets of approximately $35 billion.
A team of individuals manages each Portfolio on a day-to-day basis. This
team includes Mr. Young Chin, Mr. G. Scott Clemons, Mr. Paul J. Fraker, Mr.
Mohammad Rostom and Ms. Kayoko Kanari. Mr. Chin holds a B.A. and M.B.A. from the
University of Chicago. He joined Brown Brothers Harriman & Co. in 1999. Prior to
joining Brown Brothers Harriman & Co., he worked at Blackrock Financial
Management. Mr. Clemons holds a A.B. from Princeton University and is a
Chartered Financial Analyst. He joined Brown Brothers Harriman & Co. in 1990.
Mr. Fraker holds a B.A. from Carleton College and a M.A. from Johns Hopkins
University. He joined Brown Brothers Harriman & Co. in 1996. Prior to joining
Brown Brothers Harriman & Co., he worked for Clay Finlay. Mr. Rostom holds a
B.S. from Rochester Institute of Technology and a M.A. from Temple University.
He joined Brown Brothers Harriman & Co. in 1997. Prior to joining Brown Brothers
Harriman & Co., he worked for Kulicke & Soffa Industries. Ms. Kanari holds a
B.A. from Columbia University. She joined Brown Brothers Harriman & Co. in 1999.
Prior to joining Brown Brothers Harriman & Co., she worked for Morgan Stanley.
European Equity Portfolio, Pacific Basin Equity Portfolio and
International Equity Portfolio each pays the Investment Adviser an annual fee,
computed daily and payable monthly, equal to 0.65% of the average daily net
assets of each Portfolio. This fee compensates the Investment Adviser for its
services and its expenses (such as salaries of its personnel).
SHAREHOLDER INFORMATION
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NET ASSET VALUE
The Corporation determines each Fund's net asset value per share once
daily at 4:00 P.M., New York time on each day the New York Stock Exchange is
open for regular trading. The determination of each Fund's net asset value is
made by subtracting from the value of the total net assets of each Fund the
amount of its liabilities and dividing the difference by the number of shares of
each Fund outstanding at the time the determination is made.
Each Portfolio values its assets on the basis of their market quotations
and valuations provided by independent pricing services. If quotations are not
readily available, the assets are valued at fair value in accordance with
procedures established by the Portfolio's Trustees.
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PURCHASE OF SHARES
The Corporation offers shares of each Fund on a continuous basis at their
net asset value without a sales charge. The Corporation reserves the right to
determine the purchase orders for Fund shares that it will accept. Investors may
purchase shares on any day the net asset value is calculated if the Corporation
receives the purchase order, including acceptable payment for such order, prior
to such calculation. The Corporation then executes purchases of Fund shares at
the net asset value per share next determined. Shares are entitled to dividends
declared, if any, starting as of the first business day following the day the
Corporation executes the purchase order on the books of the Corporation.
An investor who has an account with an Eligible Institution or a Financial
Intermediary may place purchase orders for Fund shares through that Eligible
Institution or Financial Intermediary which holds such shares in its name on
behalf of that customer pursuant to arrangements made between that customer and
that Eligible Institution or Financial Intermediary. Each Eligible Institution
and each Financial Intermediary may establish and amend from time to time a
minimum initial and a minimum subsequent purchase requirement for its customers.
Currently, such minimum purchase requirements range from $500 to $5,000. Each
Eligible Institution or Financial Intermediary arranges payment for Fund shares
on behalf of its customers. An Eligible Institution or a Financial Intermediary
may charge a transaction fee on the purchase of Fund shares.
An investor who does not have an account with an Eligible Institution or a
Financial Intermediary must place purchase orders for Fund shares with the
Corporation through Brown Brothers Harriman & Co., the Funds' Shareholder
Servicing Agent. Such an investor has such shares held directly in the
investor's name on the books of the Corporation and is responsible for arranging
for the payment of the purchase price of Fund shares. The Corporation executes
all purchase orders for initial and subsequent purchases at the net asset value
per share next determined after the Corporation's transfer agent, State Street
Bank and Trust Company, has received payment in the form of a cashier's check
drawn on a U.S. bank, a check certified by a U.S. bank or a wire transfer. The
Shareholder Servicing Agent has established a minimum initial purchase
requirement for each Fund of $100,000 and a minimum subsequent purchase
requirement for each Fund of $25,000. The Shareholder Servicing Agent may amend
these minimum purchase requirements from time to time.
REDEMPTION OF SHARES
The Corporation executes your redemption request at the next net asset
value calculated after the Corporation receives your redemption request. Shares
continue to earn dividends declared, if any, through the business day that the
Corporation executes the redemption request on the books of the Corporation.
Shareholders must redeem shares held by an Eligible Institution or a
Financial Intermediary on behalf of such shareholder pursuant to arrangements
made between that shareholder and that Eligible Institution or Financial
Intermediary. The Corporation pays proceeds of a redemption to that
shareholder's account at that Eligible Institution or Financial Intermediary on
a date established by the Eligible Institution or Financial Intermediary. An
Eligible Institution or a Financial Intermediary may charge a transaction fee on
the redemption of Fund shares.
Shareholders may redeem shares held directly in the name of a shareholder
on the books of the Corporation by submitting a redemption request to the
Corporation through the Shareholder Servicing Agent. The Corporation pays
proceeds resulting from such redemption directly to the shareholder generally on
the next business day after the redemption request is executed, and in any event
within seven days.
Redemptions by the Corporation
The Shareholder Servicing Agent has established a minimum account size of
$25,000, which may be amended from time to time. If the value of a
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shareholder's holdings in a Fund falls below that amount because of a redemption
of shares, the Corporation may redeem the shareholder's remaining shares. If
such remaining shares are to be redeemed, the Corporation notifies the
shareholder and allows the shareholder 60 days to make an additional investment
to meet the minimum requirement before the redemption is processed. Each
Eligible Institution and each Financial Intermediary may establish and amend
from time to time for their respective customers a minimum account size, each of
which is currently lower than that established by the Shareholder Servicing
Agent.
Further Redemption Information
Redemptions of shares are taxable events on which a shareholder may
realize a gain or a loss.
The Corporation has reserved the right to pay the amount of a redemption
from a Fund, either totally or partially, by a distribution in kind of
securities (instead of cash) from that Fund.
The Corporation may suspend a shareholder's right to receive payment with
respect to any redemption or postpone the payment of the redemption proceeds for
up to seven days and for such other periods as applicable law may permit.
Redemptions may be suspended or payment dates postponed when the NYSE is closed
(other than weekends or holidays), when trading on the NYSE is restricted, or as
permitted by the SEC.
DIVIDENDS AND DISTRIBUTIONS
The Corporation declares and pays to shareholders substantially all of
each Fund's net income and realized net short-term capital gains at least
annually as a dividend, and substantially all of each Fund's realized net
long-term capital gains annually as a capital gains distribution. The
Corporation may make an additional dividend and/or capital gains distribution in
a given year to the extent necessary to avoid the imposition of federal excise
tax on a Fund. The Corporation pays dividends and capital gains distributions to
shareholders of record on the record date. Each Fund's net income and realized
net capital gains includes that Fund's pro rata share of its corresponding
Portfolio's net income and realized net capital gains.
Unless a shareholder whose shares are held directly in the shareholder's
name on the books of the Corporation elects to have dividends and capital gains
distributions paid in cash, the Corporation automatically reinvests dividends
and capital gains distributions in additional Fund shares without reference to
the minimum subsequent purchase requirement.
Each Eligible Institution and each Financial Intermediary may establish
its own policy with respect to the reinvestment of dividends and capital gains
distributions in additional Fund shares.
TAXES
Dividends are taxable to shareholders of a Fund as ordinary income,
whether such dividends are paid in cash or reinvested in additional shares.
Capital gains may be taxable at different rates depending on the length of time
a Portfolio holds its assets. Capital gains distributions are taxable to
shareholders as long-term capital gains, whether paid in cash or reinvested in
additional shares and regardless of the length of time a particular shareholder
has held Fund shares.
The treatment of each Fund and its shareholders in those states which have
income tax laws might differ from treatment under the federal income tax laws.
Therefore, distributions to shareholders may be subject to additional state and
local taxes. Shareholders are urged to consult their tax advisors regarding any
state or local taxes.
Foreign Investors
Each Fund is designed for investors who are either citizens of the United
States or aliens subject to United States income tax. Prospective investors who
are not citizens of the United States and who are not aliens subject to United
States income tax are subject to United States withholding tax on the entire
amount of all dividends. Therefore, such investors should not invest in a Fund
since alternative investments are available which would not be subject to United
States withholding tax.
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FINANCIAL HIGHLIGHTS
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The financial highlights table is intended to help an investor understand
the Funds' financial performance for the past five years. Certain information
reflects financial results for a single Fund share. The total returns in the
table represent the rate that an investor would have earned or lost on an
investment in each Fund (assuming reinvestment of all dividends and
distributions). This information has been audited by Deloitte & Touche LLP,
whose report, along with the Funds' financial statements, are included in the
annual report, which is available upon request.
<TABLE>
<CAPTION>
European Equity Fund
For the years ended October 31,
------------------------------------------------------------
1999 1998 1997 1996 1995
---- ---- ---- ---- ----
<S> <C> <C> <C> <C> <C>
Net asset value, beginning of year ................... $39.05 $ 38.02 $ 35.02 $ 31.95 $ 31.82
Income from investment operations:
Net investment income ............................. 0.09(1) 0.42 0.39 0.38(1) 0.45
Net realized and unrealized gain .................. 4.15 6.06 5.29 4.08 2.09
Less dividends and distributions:
From net investment income ........................ (0.65) (0.31) (0.41) -- --
In excess of net investment income ................ (0.01) -- -- -- --
From net realized gains ........................... (4.71) (5.14) (2.27) (1.39) (2.41)
------ ------ ------- ------- -------
Net asset value, end of year ......................... $37.92 $ 39.05 $ 38.02 $ 35.02 $ 31.95
====== ======= ======= ======= =======
Total return ......................................... 11.87% 19.34% 17.28% 14.63% 9.42%
Ratios/Supplemental Data:
Net assets, end of year (000's omitted) ...........$143,315 $155,557 $154,179 $146,350 $116,955
Expenses as a percentage of average
net assets:
Expenses paid by Fund ............................. 1.33% 1.18% 1.32% 1.23% 1.24%
Expenses paid by commissions(2) ................... -- 0.01% 0.01% 0.01% 0.05%
Expense offset arrangement ........................ -- 0.02% 0.03% 0.09% 0.14%
-------- -------- -------- -------- --------
Total expenses .................................. 1.33% 1.21% 1.36% 1.33% 1.43%
Ratio of net investment income to
average net assets ................................ 0.24% 0.60% 1.02% 1.16% 1.55%
Portfolio turnover rate .............................. 37% 56% 82% 42% 72%
</TABLE>
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(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.
13
<PAGE>
<TABLE>
<CAPTION>
Pacific Basin Equity Fund
For the years ended October 31,
-----------------------------------------------------------------
1999 1998 1997 1996 1995
---- ---- ---- ---- ----
<S> <C> <C> <C> <C> <C>
Net asset value, beginning of period ............... $20.31 $24.52 $30.19 $29.88 $39.85
Income from investment operations:
Net investment income (loss) .................... (0.17)(1) (0.20) 0.00(1,2) 0.05(1) 0.11
Net realized and unrealized gain (loss) ......... 18.63 (2.39) (4.69) 1.62 (4.50)
Less dividends and distributions:
From net investment income ...................... -- (0.52) (0.00)(2) (0.86) (0.00)(2)
In excess of net investment income .............. -- (1.10) (0.25) (0.50) --
From net realized gains ......................... -- -- (0.28) -- (5.58)
In excess of net realized gains ................. -- -- (0.45) -- --
------ ------ ------ ------ ------
Net asset value, end of period ..................... $38.77 $20.31 $24.52 $30.19 $29.88
====== ====== ====== ====== ======
Total return ....................................... 90.89% (10.78)% (16.03)% 5.65% (10.62)%
Ratios/Supplemental Data:
Net assets, end of year (000's omitted) ......... $80,411 $32,630 $102,306 $150,685 $114,932
Expenses as a percentage of average net assets:
Expenses paid by Fund ......................... 1.39% 1.44% 1.19% 1.13% 1.24%
Expenses paid by commissions(3) ............... -- -- 0.01% 0.01% 0.05%
Expense offset arrangement .................... --(4) 0.18% 0.06% 0.16% 0.14%
------- ------- -------- -------- --------
Total expenses ................................ 1.39% 1.62% 1.26% 1.30% 1.43%
Ratio of net investment income (loss) to
average net assets ............................ (0.58)% (0.73)% 0.00% 0.16% 0.53%
Portfolio turnover rate ......................... 97% 91% 63% 58% 82%
</TABLE>
- ---------------------
(1) Calculated using average shares outstanding for the year.
(2) Less than $0.01 per share.
(3) A portion of the Fund's securities transactions are directed to certain
unaffiliated brokers which in turn use a portion of the commissions they
receive from the Fund to pay other unaffiliated service providers on behalf
of the Fund for services provided for which the Fund would otherwise be
obligated to pay.
(4) Less than 0.01%.
14
<PAGE>
<TABLE>
<CAPTION>
International Equity Fund
----------------------------------------------------
For the period from
For the year ended June 6, 1997
October 31, (commencement of
--------------------- operations) to
1999 1998 to October 31, 1997
------ ------ ------------------
<S> <C> <C> <C>
Net asset value, beginning of period ................................ $10.09 $9.42 $10.00
Income from investment operations:
Net investment loss .............................................. (0.02) 0.00(1) 0.00(1)
Net realized and unrealized gain (loss) .......................... 3.00 0.75 (0.58)
Less dividends and distributions:
In excess of net investment income ............................... (0.03) (0.03) --
From net realized gains .......................................... -- (0.05) --
------ ------ ------
Net asset value, end of period ...................................... $13.04 $10.09 $ 9.42
====== ====== ======
Total return ........................................................ 29.57% 8.06% (5.80)%(2)
Ratios/Supplemental Data:
Net assets, end of year (000's omitted) .......................... $59,961 $27,475 $7,040
Expenses as a percentage of average net assets:
Expenses paid by the Fund ........................................ 150%(4) 1.50%(4) 1.36%(3,4)
Expenses paid by the Commisions .................................. -- -- --
Expenses offset arrangements ..................................... -- -- --
------- ---------- ----------
Total expenses ................................................... 1.50%(4) 1.50%(4) 1.50%(3,4)
Ratio of net investment loss to
average net assets ............................................. (0.25)% (0.15)% (0.06)%(3)
</TABLE>
- ------------------------
(1) Less than $0.01.
(2) Not annualized.
(3) Annualized.
(4) Includes the Fund's share of International Equity Portfolio expenses.
ADDITIONAL INFORMATION
- --------------------------------------------------------------------------------
Other mutual funds or institutional investors may invest in each Portfolio
on the same terms and conditions as the Portfolio's corresponding Fund. However,
these other investors may have different aggregate performance results. The
Corporation may withdraw a Fund's investment in its corresponding Portfolio at
any time as a result of changes in such Portfolio's investment objective,
policies or restrictions or if the Board of Directors determines that it is
otherwise in the best interests of that Fund to do so.
15
<PAGE>
The 59 Wall Street
European Equity Fund
The 59 Wall Street
Pacific Basin Equity Fund
The 59 Wall Street
International Equity Fund
More information on the Funds is available free upon request, including the
following:
o Annual/Semi-Annual Report
Describes the Funds' performance, lists portfolio holdings and contains a letter
from the Funds' Investment Adviser discussing recent market conditions, economic
trends and Fund strategies that significantly affected each Fund's performance
during their last fiscal year.
o Statement of Additional Information (SAI)
Provides more details about each Fund and its policies. A current SAI is on file
with the Securities and Exchange Commission (SEC) and is incorporated by
reference (is legally considered part of this prospectus).
To obtain information or make shareholder inquiries:
o By telephone
Call 1-800-625-5759
o By mail write to the Funds' Shareholder
Servicing Agent:
Brown Brothers Harriman & Co.
59 Wall Street
New York, New York 10005
o By E-mail send your request to:
[email protected]
o On the Internet:
Text-only versions of Fund documents can be viewed online or downloaded
from:
Brown Brothers Harriman & Co.
http://www. bbhco.com
SEC
http://www.sec.gov
You can also review or obtain copies by visiting the SEC's Public Reference Room
in Washington, DC or by sending your request and a duplicating fee to the SEC's
Public Reference Section, Washington, DC 20549-0102. Information on the
operations of the Public Reference Room may be obtained by calling
1-202-942-8090. Additionally, this information is available on the EDGAR
database at the SEC's internet site at http://www.sec.gov. A copy may be
obtained, after paying a duplicating fee, by electronic request at the following
e-mail address: [email protected].
SEC file number: 811-06139
European Equity Fund
Pacific Basin Equity Fund
International Equity Fund
PROSPECTUS
March 1, 2000
