THE 59 WALL STREET INFLATION-INDEXED SECURITIES FUND
PORTFOLIO OF INVESTMENTS
April 30, 2000
(unaudited)
<TABLE>
<CAPTION>
Principal
Amount Value
------------- ---------
VARIABLE FLOATING NOTES (3.6%)
Carco Auto Loan Master Trust Series 1999-2 Class A1
<S> <C> <C> <C> <C>
$ 100,000 6.200%, 05/17/2004 ........................................................ $ 99,984
Chase Credit Card Master Trust Series 1998-5 Class A
100,000 6.290%, 01/15/2006 ........................................................ 99,906
First USA Credit Card Master Trust Series 96-6 Class A
100,000 6.270%, 07/10/2006 ........................................................ 100,000
MBNA Master Credit Card Master Trust Series 1996-J Class A
100,000 6.280%, 02/15/2006 ........................................................ 100,062
MBNA Master Credit Card Master Trust Series 1996-K Class A
100,000 6.260%, 03/15/2006 ........................................................ 100,000
-----------
Total Variable Floating Notes
(identified cost $500,270) .............................................. 499,952
-----------
TENNESSEE VALLEY AUTHORITY NOTES (2.2%)
321,267 3.375%, 1/15/2007 (identified cost $312,171) ................................ 299,029
-----------
U.S. TREASURY NOTES AND BONDS (94.0%)
1,515,309 3.375%, 1/15/2007 ........................................................... 1,459,910
1,859,922 3.625%, 1/15/2008 ........................................................... 1,812,252
1,176,989 3.625%, 4/15/2028 ........................................................... 1,128,074
1,049,855 3.625%, 7/15/2002 ........................................................... 1,047,724
2,025,649 3.875%, 1/15/2009 ........................................................... 2,006,020
5,392,618 3.875%, 4/15/2029 ........................................................... 5,404,428
-----------
Total U.S. Treasury Notes and Bonds
(identified cost $12,501,674) ........................................... 12,858,408
-----------
REPURCHASE AGREEMENTS (0.7%)
100,000 J.P. Morgan & Co., 5.650%, 05/01/2000
(Agreement dated 04/28/2000 collateralized by $102,000
Treasury Notes 6.250%, due 2/15/2003; $100,047
to be received upon maturity ) (identified cost $100,000) ................. 100,000
-----------
TOTAL INVESTMENTS (identified cost $13,414,115) (a) ........................ 100.5% 13,757,389
CASH AND OTHER ASSETS IN EXCESS OF LIABILITIES ............................. (0.5) (73,577)
----- -----------
NET ASSETS ................................................................. 100.0% $13,683,812
----- -----------
</TABLE>
----------
(a) The aggregate cost for federal income tax purposes is $13,414,115, the
aggregate gross unrealized appreciation is $374,153, and the aggregate
gross unrealized depreciation is $30,879, resulting in net unrealized
depreciation of $343,274.
See Notes to Financial Statements.
<PAGE>
THE 59 WALL STREET INFLATION-INDEXED SECURITIES FUND
STATEMENT OF ASSETS AND LIABILITIES
April 30, 2000
(unaudited)
<TABLE>
<CAPTION>
<S> <C>
ASSETS:
Investments in securities, at value (identified cost $13,414,115) (Note 1) $ 13,757,388
Cash ..................................................................... 49,743
Interest receivable ...................................................... 84,232
------------
Total Assets ...................................................... 13,891,363
------------
LIABILITIES:
Payables for:
Fund shares repurchased ................................................ 200,000
Administrative fee (Note 2) ............................................ 1,165
Expense payment fee (Note 2) ........................................... 6,386
------------
Total Liabilities ................................................. 207,551
------------
NET ASSETS .................................................................. $ 13,683,812
============
Net Assets Consist of:
Paid-in capital ........................................................ $ 14,060,166
Undistributed net investment loss ...................................... (15,615)
Accumulated net realized loss on investments ........................... (704,013)
Net unrealized appreciation ............................................ 343,274
------------
Net Assets .................................................................. $ 13,683,812
============
NET ASSET VALUE AND OFFERING PRICE PER SHARE
($13,683,812 / 1,434,501 shares) ............................................ $9.54
=====
</TABLE>
See Notes to Financial Statements.
<PAGE>
THE 59 WALL STREET INFLATION-INDEXED SECURITIES FUND
STATEMENT OPERATIONS
For the six months ended April 30, 2000
(unaudited)
<TABLE>
<CAPTION>
<S> <C>
INVESTMENT INCOME:
Income:
Interest .......................................................................... $426,133
--------
Expenses:
Administrative fee (Note 2) ....................................................... 6,615
Expense payment fee (Note 2) ...................................................... 36,358
--------
Total Expenses ................................................................. 42,973
--------
Net Investment Income .......................................................... 383,160
--------
NET REALIZED AND UNREALIZED GAIN (Notes 1 and 3):
Net realized gain on investments and foreign exchange transactions ................... 38,316
Net change in unrealized appreciation on investments and foreign currency translations 460,661
--------
Net Realized and Unrealized Gain ..................................................... 498,977
--------
Net Increase in Net Assets Resulting from Operations ................................. $882,137
========
</TABLE>
See Notes to Financial Statements.
<PAGE>
THE 59 WALL STREET INFLATION-INDEXED SECURITIES FUND
STATEMENT OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
For the
six months ended For the
April 30, 2000 year ended
(unaudited) October 31, 1999
---------------- ----------------
<S> <C> <C>
INCREASE (DECREASE) IN NET ASSETS:
Operations:
Net investment income ........................................ $ 383,160 $ 639,065
Net realized gain (loss) on investments and foreign exchange
transactions ............................................... 38,316 (198,319)
Net change in unrealized appreciation (depreciation) on
investments and foreign currency translations .............. 460,661 (143,850)
------------ ------------
Net increase in net assets resulting from operations ......... 882,137 296,896
------------ ------------
Dividends and distributions declared (Note 1):
From net investment income ................................. (398,775) (638,362)
------------ ------------
Capital stock transactions (Note 4):
Net proceeds from sales of capital stock ..................... 4,416,188 3,568,054
Net asset value of capital stock issued to shareholders in
reinvestment of dividends and distributions ................ 58,881 86,968
Net cost of capital stock redeemed ........................... (3,063,278) (4,118,741)
------------ ------------
Net increase (decrease) in net assets resulting from capital
stock transactions ...................................... 1,411,791 (463,719)
------------ ------------
Total increase (decrease) in net assets .................... 1,895,153 (805,185)
NET ASSETS:
Beginning of period ............................................... 11,788,659 12,593,844
------------ ------------
End of period ..................................................... $ 13,683,812 $ 11,788,659
============ ============
</TABLE>
See Notes to Financial Statements.
<PAGE>
THE 59 WALL STREET INFLATION-INDEXED SECURITIES 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,
2000 -------------------------------------------------
(unaudited) 1999 1998 1997 1996 1995
--------- ----- ----- ----- ----- -----
<S> <C> <C> <C> <C> <C> <C>
Net asset value, beginning of period .......... $9.26 $9.52 $9.51 $9.67 $9.76 $9.37
Income from investment operations:
Net investment income ...................... 0.28 0.48 0.45 0.48 0.55 0.54
Net realized and unrealized gain (loss) .... 0.29 (0.26) 0.01 (0.16) (0.09) 0.39
Less dividends and distributions (Note 1):
From net investment income ................. (0.29) (0.48) (0.45) (0.48) (0.55) (0.54)
----- ----- ----- ----- ----- -----
Net asset value, end of period ................ $9.54 $9.26 $9.52 $9.51 $9.67 $9.76
===== ===== ===== ===== ===== =====
Total return(1) ............................... 6.27% 2.43% 4.98% 3.40% 4.88% 10.26%
Ratios/Supplemental data:
Net assets, end of period (000's omitted) .. $13,684 $11,789 $12,594 $13,744 $16,821 $10,830
Expenses as a percentage of average
net assets(1) ............................ 0.65%(2) 0.65% 0.65% 0.73% 0.85% 0.85%
Ratio of net investment income to average
net assets ............................... 5.81%(2) 5.14% 4.48% 4.99% 5.73% 5.66%
Portfolio turnover rate .................... 185% 899% 305% 372% 114% 228%
</TABLE>
----------
(1) Had the expense payment agreement not been in place, the ratio of expenses
to average net assets and total return would have been as follows:
Ratio of expenses to average
net assets ................ 1.21%(2) 1.19% 1.15% 1.24% 1.40% 1.40%
Total return ................ 5.99% 1.89% 4.45% 2.89% 4.33% 9.71%
Furthermore, the ratio of expenses to average net assets for the six months
ended April 30, 2000 and years ended October 31, 1999, 1998, 1997, 1996, and
1995, reflects fees paid with brokerage commissions and fees reduced in
connection with specific agreements. Had these arrangements not been in
place, the ratio would have been 1.22%, 1.20%, 1.15%, 1.26%, 1.42%,and 1.43%,
respectively
(2) Annualized.
See Notes to Financial Statements.
<PAGE>
THE 59 WALL STREET INFLATION-INDEXED SECURITIES FUND
NOTES TO FINANCIAL STATEMENTS
(unaudited)
1. Organization and Significant Accounting Policies. The 59 Wall Street
Inflation-Indexed Securities Fund (formerly The 59 Wall Street
Short/Intermediate Fixed Income Fund) (the "Fund") is a separate 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 16, 1990. The Fund commenced operations on July 23, 1992.
Effective March 1, 1997 the Fund change its name to The 59 Wall Street
Inflation-Indexed Securities Fund.
The Fund's financial statements are prepared in accordance with generally
accepted accounting principles, which require management to make certain
estimates and assumptions at the dare of the financial statements and are based,
in part, on the following accounting policies. Actual results could differ from
those estimates.
A. Valuation of lnvestments. Bonds and other fixed income securities
(other than short-term obligations but including listed issues) are valued
on the basis of valuations furnished by a pricing service, use of which
has been approved by the Board of Directors. In making such valuations,
the pricing service utilizes both dealer-supplied valuations and
electronic data processing techniques which take into account appropriate
factors such as institutional-size trading in similar groups of
securities, yield, quality, coupon rate, maturity, type of issue, trading
characteristics and other market data, without exclusive reliance upon
quoted prices or exchange or over-the-counter prices, since such
valuations are believed to reflect more accurately the fair value of such
securities.
Securities or other assets for which market quotations are nor
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.
Short-term investments which mature in 60 days or less are valued at
amortized cost if their original maturity was 60 days or less, or by
amortizing their value on the 61st day prior to maturity, if their
original maturity when acquired by the Fund was more than 60 days, unless
this is determined nor to represent fair value by the Board of Directors.
B. Accounting for Investments. Investment transactions are accounted
for on the trade date. Realized gains and losses, if any, from investment
transactions are determined on the basis of identified cost. Interest
income is accrued daily and consists of interest accrued, discount earned
(including both original issue and market discount) and premium
amortization on the investments of the Fund.
C. 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.
The 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 the Fund's tax return due to
certain book-to tax timing differences such as losses deferred due to
"wash sale" transactions and utilization of capital loss carryforwards.
These timing differences may result in temporary over-distributions for
financial statement purposes and are classified as distributions in excess
of accumulated net investment income and net realized gains. 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.
<PAGE>
THE 59 WALL STREET INFLATION-INDEXED SECURITIES FUND
NOTES TO FINANCIAL STATEMENTS (continued)
(unaudited)
D. Forward Foreign Currency Exchange Contracts. The Fund may enter
into forward foreign currency exchange contracts ("contracts") in
connection with planned purchases or sales of securities or to hedge the
U.S. dollar value of portfolio securities denominated in a particular
currency. The Fund has to hedge the U.S. dollar value of portfolio
securities denominated in a particular currency. The Fund has no specific
limitation on the percentage of assets which may be committed to these
types of contracts. The Fund 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.
E. Dividends and Distributions to Shareholders. Dividends to
shareholders from net investment income are paid monthly and are recorded
on the ex-dividend date. Distributions from net capital gains, if any, are
paid annually and are recorded on the ex-dividend date.
2. Transactions with Affiliates.
Investment Advisory Fee. The Corporation has an investment advisory
agreement with Brown Brothers Harriman & Co. (the "Adviser") for which the
Adviser receives a fee from the Fund calculated daily and paid monthly at an
annual rate equivalent to 0.25% of the Fund's average daily net assets.
Administrative Fee. The Corporation has an administration agreement with
Brown Brothers Harriman & Co. (the "Administrator") for which the Administrator
receives a fee from the Fund calculated daily and paid monthly at an annual rate
equivalent to 0.10% of the Fund's average daily net assets. The Administrator
has a subadministration services agreement with 59 Wall Street Administrators,
Inc. for which 59 Wall Street Administrators, Inc. receives such compensation as
is from time to time agreed upon, but not in excess of the amount paid to the
Administrator. For the six months ended April 30, 2000, the Fund incurred $6,615
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 the Fund calculated daily and paid monthly at an annual rate equivalent
to 0.25% of the Fund's average daily net assets.
Expense Payment Fee. 59 Wall Street Administrators, Inc. pays certain
expenses of the Fund and receives a fee from the Fund, computed and paid
monthly, such that after such fee the aggregate expenses will not exceed 0.65%
of the Fund's average daily net assets. Prior to March 1, 1997, under an
agreement dated February 22, 1995, 59 Wall Street Administrators, Inc. received
a fee from the Fund such that after such payment the aggregate expenses of the
Fund did not exceed an agreed annual rate of 0.85% of the average daily net
assets of the fund. For the six months ended April 30, 2000, 59 Wall Street
Administrators, Inc. incurred $80,022 in expenses, including investment advisory
fees of $16,537 and shareholder servicing/eligible institution fees of $16,537,
on behalf of the Fund. The Fund's expense payment fee agreement will terminate
on October 31, 2002.
3. Investment Transactions. For the six months ended April 30, 2000, the
cost of purchases and the proceeds of sales of investment securities other than
short-term investments were $25,728,939 and $23,716,771, respectively. Custody
fees for the Fund paid pursuant to the expense payment agreement (see Note 2)
were reduced by approximately $647 as a result of an expense offset arrangement
with the Fund's custodian.
<PAGE>
THE 59 WALL STREET INFLATION-INDEXED SECURITIES FUND
NOTES TO FINANCIAL STATEMENTS (continued)
(unaudited)
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 the Fund. Transactions in shares of capital
stock were as follows:
<TABLE>
<CAPTION>
For the six months For the year
ended April 30, ended October 31,
2000 1999
------------------ -----------------
<S> <C> <C>
Capital stock sold ............................................ 482,815 380,212
Capital stock issued in connection with reinvestment of
dividends and distributions ................................ 6,316 9,307
Capital stock repurchased ..................................... (327,797) (493,283)
------- -------
Net Increase (Decrease) ....................................... 161,397 (103,764)
======= =======
</TABLE>
<PAGE>
The 59 Wall Street Fund, Inc.
Investment Adviser and
Administrator
Brown Brothers Harriman & Co.
59 Wall Street
New York, New York 10005
Distributor
59 Wall Street Distributors, Inc.
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.
Inflation-Indexed Securities Fund
SEMi-ANNUAL REPORT
April 30, 2000
