LANDMARK INTERNATIONAL EQUITY FUND, N-30B-2, 1997-08-29

LANDMARK INTERNATIONAL EQUITY FUND
N-30B-2, 1997-08-29

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<PAGE>

TRUSTEES AND OFFICERS
C. Oscar Morong, Jr., Chairman
Philip W. Coolidge*, President
Riley C. Gilley
Diana R. Harrington
Susan B. Kerley
E. Kirby Warren
William S. Woods, Jr.
SECRETARY
Linda T. Gibson*
TREASURER
John R. Elder*
*Affiliated Person of Administrator and Distributor

- --------------------------------------|-|---------------------------------------

INVESTMENT ADVISER
(OF INTERNATIONAL
EQUITY PORTFOLIO)
Citibank, N.A.
153 East 53rd Street, New York, NY 10043
ADMINISTRATOR AND DISTRIBUTOR
The Landmark Funds Broker-Dealer Services, Inc.
6 St. James Avenue, Boston, MA 02116
(617) 423-1679
TRANSFER AGENT
State Street Bank and Trust Company
225 Franklin Street, Boston, MA 02110
CUSTODIAN
Investors Bank and Trust Company
One Lincoln Plaza, Boston, MA 02111
AUDITORS
Price Waterhouse LLP
160 Federal Street, Boston, MA 02110
LEGAL COUNSEL
Bingham, Dana & Gould
150 Federal Street, Boston, MA 02110

- --------------------------------------|-|---------------------------------------

SHAREHOLDER SERVICING AGENTS
(See Inside Cover)

This report is prepared for the information of shareholders. It is authorized
for distribution to prospective investors only when preceded or accompanied by
an effective prospectus.

INTL/IE/S/97 Printed on Recycled Paper [Recycle symbol]

[logo] LANDMARK(SM) FUNDS
Advised by Citibank, N.A.

LANDMARK
INTERNATIONAL
EQUITY FUND

SEMI-ANNUAL
REPORT
June 30, 1997

<PAGE>

- --------------------------------------------------------------------------------
A LETTER TO OUR SHAREHOLDERS
- --------------------------------------------------------------------------------

Dear Shareholder:

The international stock markets produced mixed results during the first six
months of 1997. Strong performance in Europe and Latin America helped the
Landmark International Equity Fund produce positive returns, but declines in
Asia prevented those returns from matching the gains achieved in the U.S. stock
market. In addition, many of the markets in which the Fund invests performed
better in local currency terms than they did when translated into U.S. dollars,
the result of a stronger U.S. dollar relative to most other major currencies.

The Landmark Funds' investment adviser, Citibank, N.A., managed the
Landmark International Equity Fund to achieve its investment objective:
long-term capital growth. Through its investment in International Equity
Portfolio, the Fund invests primarily in common stocks of non-U.S. issuers,
including issuers in developing countries, with an emphasis on established
companies with medium to large capitalizations and seasoned management teams.

This report reviews the Portfolio's investment activities and performance
during the six-month period ended June 30, 1997, and provides a summary of
Citibank's perspective on and outlook for the international stock markets. On
behalf of the Board of Trustees of the Landmark Funds, I want to thank you for
your confidence and participation.

/s/ Philip Coolidge
- -------------------------------------
Philip W. Coolidge
President
July 18, 1997

Remember that Mutual Fund Shares:
o Are not bank deposits or FDIC insured
o Are not obligations of or guaranteed by Citibank or Citicorp Investment
Services
o Are subject to investment risks, including possible loss of the
principal amount invested

================================================================================
TABLE OF CONTENTS
1 A Letter to Our Shareholders
- --------------------------------------------------------------------------------
Market Environment
2 Fund Snapshot
Portfolio Manager
- --------------------------------------------------------------------------------
The Portfolio Manager Responds
3 Quotes from the Portfolio Manager
Strategy and Outlook
- --------------------------------------------------------------------------------
International Equity Portfolio
4 by the Numbers
- --------------------------------------------------------------------------------
Fund Data
5 Performance Highlights
- --------------------------------------------------------------------------------

LANDMARK INTERNATIONAL EQUITY FUND
6 Statement of Assets and Liabilities
- --------------------------------------------------------------------------------
7 Statement of Operations
- --------------------------------------------------------------------------------
8 Statement of Changes in Net Assets
- --------------------------------------------------------------------------------
9 Financial Highlights
- --------------------------------------------------------------------------------
10 Notes to Financial Statements
- --------------------------------------------------------------------------------
INTERNATIONAL EQUITY PORTFOLIO
13 Portfolio of Investments
- --------------------------------------------------------------------------------
Statement of Assets and Liabilities
19 Statement of Operations
- --------------------------------------------------------------------------------
Statement of Changes in Net Assets
20 Financial Highlights
- --------------------------------------------------------------------------------
21 Notes to Financial Statements
================================================================================

- --------------------------------------------------------------------------------
MARKET ENVIRONMENT
- --------------------------------------------------------------------------------
In overseas markets, stocks produced mixed results. On the positive side,
some of Europe's equity markets exceeded even the U.S. market's returns.
Companies in Switzerland, Germany, Spain and Scandinavia performed exceptionally
well as the region entered a period of economic recovery characterized by
declining interest rates and expectations of higher corporate profits. The
United Kingdom generally lagged continental Europe, but produced modestly
positive returns in an environment characterized by a strengthening currency, a
tighter monetary policy and the uncertainty of a new government.

In Japan, signs of an economic recovery are finally emerging, and Japanese
stocks rose during the second quarter of 1997 after a lackluster first quarter.
The recovery appears to be led by exporters benefiting from strong economies and
robust consumer spending in the U.S. and Europe. In contrast, however, domestic
Japanese companies have not yet demonstrated similar signs of impending growth,
suggesting that Japan's economic problems may not be completely resolved.

In the emerging markets, most of the so-called Asian "Tiger" markets declined
sharply as a real-estate induced economic crisis hit Thailand and affected
neighboring markets. Only Hong Kong and Indonesia showed gains. On the other
hand, the emerging markets of Latin America rose as many of these nations appear
to be making progress toward participation in the global business arena.

- --------------------------------------------------------------------------------
FUND SNAPSHOT
- --------------------------------------------------------------------------------

COMMENCEMENT OF OPERATIONS
March 1, 1991

NET ASSETS AS OF 6/30/97
$28.2 million

FUND OBJECTIVE
Long-term capital growth; dividend income, if any, is incidental to this
investment objective.

DIVIDENDS
Paid semi-annually, if any

CAPITAL GAINS
Distributed annually, if any

BENCHMARKS
o Lipper International Equity Funds Average
o Morgan Stanley Capital International Europe-
Australia-Far East (MSCI EAFE) Index

INVESTMENT ADVISER,
INTERNATIONAL EQUITY PORTFOLIO
Citibank, N.A.

- --------------------------------------------------------------------------------
PORTFOLIO MANAGER
- --------------------------------------------------------------------------------

TREVOR FORBES
Vice President, Citibank, N.A.

Mr. Forbes is based in Citibank's London office, and is manager of the
International Equity Portfolio. Mr. Forbes is the head of Citibank's
International Equity Department in London and the senior portfolio manager of
global, non-U.S. equity and European equity portfolios for institutional
accounts. Before joining Citibank in 1991, Mr. Forbes managed the investment
business of Abbey Life. The selection of specific securities is made by
committees of Citibank investment personnel specializing in investments in the
countries selected by Mr. Forbes.

- --------------------------------------------------------------------------------
THE PORTFOLIO MANAGER RESPONDS
- --------------------------------------------------------------------------------
Throughout the period, we maintained our broadly diversified approach to
investing internationally. Using Morgan Stanley's EAFE Index as our benchmark,
we first assessed economic and market conditions in the various stock markets to
determine which held the most promise. That analysis led us to focus a
disproportionate amount of the Portfolio's assets in continental Europe, where
we believed that the early stages of economic recovery would benefit future
corporate earnings. We also increased our exposure to Japanese exporting stocks
in anticipation of their recovery, shifting assets from Hong Kong stocks that
had already performed well. The result of this asset allocation strategy was
returns modestly greater than the EAFE Index, but with substantially less
volatility.

We also adjusted the mix of industries and economic sectors within each
market. At the end of the period, the Portfolio had less exposure relative to
our benchmark in financial stocks, especially in Japan, and higher exposure to
capital equipment stocks, especially in Japan and Germany.

- --------------------------------------------------------------------------------
QUOTES FROM THE PORTFOLIO MANAGER
- --------------------------------------------------------------------------------
"Europe showed impressive overall growth during the first half of the year, and
some markets even exceeded the performance of the U.S. stock market."

"The Hong Kong market changed dramatically in anticipation of the transfer of
power from Great Britain to China, so we're taking a cautious approach."

"We've made some substantial changes to the mix of stocks in the Portfolio over
the past six months, and our list of top-ten holdings reflects those changes."

- --------------------------------------------------------------------------------
STRATEGY AMD OUTLOOK
- --------------------------------------------------------------------------------
To a certain extent, we believe that the near term outlook for
international stocks is tied to the fortunes of the U.S. economy and stock
market. If the U.S. dollar remains strong, as we believe it will, overseas
exporters should benefit. Europe appears to be particularly attractive: As
interest rates decline during the economic recovery, corporate earnings should
grow. In addition, many European companies are just starting the restructuring
process that has already helped U.S. companies boost their earnings and stock
prices.

We intend to proceed cautiously in Japan, evaluating the situation there
carefully before widening our focus from major exporters to domestic companies.
We expect the rest of Asia, however, to remain relatively unattractive. In Latin
America, we anticipate further growth in selected markets. If U.S. economic
growth continues unabated, it is likely that Latin American economies closely
tied to the United States economy, such as Mexico's, will benefit most. Finally,
we are seeing opportunities arise in the emerging markets of Eastern Europe, and
we will continue to watch for opportunities there.

- --------------------------------------------------------------------------------
International Equity Portfolio
- --------------------------------------------------------------------------------
BY THE NUMBERS
- --------------------------------------------------------------------------------

TOP TEN HOLDINGS OF THE PORTFOLIO
(As of 6/30/97)

NAME NATION% OF NET ASSETS
Roche Holding AG Switzerland 1.7%
Royal Dutch Petroleum Co., ADR Netherlands 1.6%
Lloyds TSB Group PLC United Kingdom 1.6%
British Telecom PLC United Kingdom 1.5%
Volkswagen AG Germany 1.4%
Veba AG Germany 1.3%
British Petroleum Co. PLC United Kingdom 1.3%
Mitsubishi Heavy Japan 1.1%
Telebras BRC Brazil 1.1%
Telefonica Spain 1.1%
- --------------------------------------------------------------------------------

INDUSTRIES AS A % OF THE PORTFOLIO
INDUSTRIES %OF COMMON STOCKS
---------- -----------------
Banking 12.1%
Pharmaceuticals & Health 8.5%
Telephone Utilities 7.6%
Energy Sources 6.5%
Insurance 5.5%
Multi-Industry 5.5%
Retailing 5.2%
Automobiles 4.9%
Electrical & Gas Utilities 4.8%
Industrial Components 4.6%
Electrical & Electronics 4.5%
Machinery & Engineering 4.2%
Chemicals 3.1%
Food & Household Products 2.9%
Financial Services 2.5%
Building Materials 2.3%
Business & Public 2.0%
Beverages & Tobacco 1.6%
Steel 1.6%
Non-Ferrous Metals 1.5%
Real Estate 1.4%
Leisure & Tourism 1.1%
Forest Products & Paper 1.0%
Building & Construction 0.9%
International Trade 0.7%
Textiles 0.7%
Road & Rail Transport 0.6%
Household Appliances 0.6%
Aerospace & Defense 0.4%
Data Processing & Reproduction 0.4%
Airlines 0.3%
Miscellaneous Materials 0.3%
Gold Mines 0.2%

CHANGES IN PORTFOLIO ASSET ALLOCATION
Portfolio of Investments
as of 6/30/97

Europe 63%
Japan 30%
Pacific Basin 4%
South America 2%
Central America 1%

. . . Compared to 12/31/96

Europe 58%
Japan 35%
Pacific Basin 4%
North America 3%

- --------------------------------------------------------------------------------
FUND DATA All Periods Ending June 30, 1997 (unaudited)
- --------------------------------------------------------------------------------

<TABLE>
<CAPTION>
TOTAL RETURNS
----------------------------------------------------
SINCE
SIX ONE FIVE 3/1/91
MONTHS** YEAR YEAR* INCEPTION*
---------- ---------- ---------- ----------
<S> <C> <C> <C> <C>
Landmark International Equity Fund
without Sales Charge ................................ 10.12% 6.86% 7.65% 7.00%
Lipper International Equity Funds Average ............ 12.53% 16.54% 12.33% 10.24%+
MSCI EAFE Index ...................................... 11.36% 13.16% 13.17% 9.31%+
Landmark International Equity Fund
with Maximum Sales Charge of 4.75% .................. 4.88% 1.78% 6.60% 6.18%
</TABLE>

*Average Annual Total Return
**Not Annualized
+Since 2/28/91

Capital Gain Distribution $.111

- --------------------------------------------------------------------------------
PERFORMANCE HIGHLIGHTS
- --------------------------------------------------------------------------------
A $10,000 investment in the Fund made on inception date would have grown to
$14,623 with sales charge (as of 6/30/97). The graph shows how this compares to
our benchmarks over the same period.

The graph includes the initial sales charge on the Fund (no comparable charge
exists for the other indices) and assumes all dividends and distributions from
the Fund are reinvested at Net Asset Value.

LANDMARK INTERNATIONAL EQUITY

Landmark Landmark Lipper
International International International
Equity Fund - Equity Fund - Equity MSCI
Without Sales With Sales Funds EAFE Index
Charge Charge Average (unmanaged)

Feb-91 10,000 9,525 10,000 10,000
Mar-91 9,420 8,973 9,708 9,401
Apr-91 9,740 9,277 9,831 9,496
May-91 9,740 9,277 9,942 9,596
Jun-91 9,760 9,296 9,451 8,890
Jul-91 9,800 9,335 9,828 9,330
Aug-91 9,910 9,439 9,748 9,142
Sep-91 10,150 9,668 10,022 9,660
Oct-91 10,200 9,716 10,081 9,800
Nov-91 9,860 9,392 9,745 9,345
Dec-91 10,161 9,678 10,203 9,834
Jan-92 10,411 9,917 10,281 9,629
Feb-92 10,602 10,098 10,282 9,290
Mar-92 10,090 9,611 9,927 8,682
Apr-92 10,361 9,869 10,143 8,728
May-92 10,933 10,414 10,648 9,318
Jun-92 10,622 10,118 10,356 8,882
Jul-92 10,171 9,688 9,971 8,661
Aug-92 10,221 9,735 10,072 9,210
Sep-92 9,910 9,439 9,864 9,034
Oct-92 9,749 9,286 9,595 8,566
Nov-92 9,900 9,430 9,632 8,651
Dec-92 10,013 9,537 9,741 8,701
Jan-93 10,013 9,537 9,792 8,706
Feb-93 9,973 9,499 10,039 8,974
Mar-93 10,536 10,035 10,603 9,762
Apr-93 10,797 10,284 11,148 10,693
May-93 11,089 10,562 11,401 10,924
Jun-93 10,827 10,313 11,172 10,756
Jul-93 10,797 10,284 11,506 11,134
Aug-93 11,390 10,849 12,241 11,738
Sep-93 11,501 10,955 12,215 11,476
Oct-93 12,044 11,472 12,790 11,832
Nov-93 11,813 11,251 12,382 10,800
Dec-93 12,999 12,381 13,608 11,582
Jan-94 13,632 12,985 14,400 12,564
Feb-94 13,089 12,468 14,075 12,532
Mar-94 12,144 11,567 13,423 11,994
Apr-94 12,144 11,567 13,749 12,506
May-94 12,084 11,510 13,713 12,437
Jun-94 11,903 11,338 13,558 12,616
Jul-94 12,185 11,606 13,934 12,740
Aug-94 12,748 12,142 14,346 13,045
Sep-94 12,456 11,864 13,992 12,636
Oct-94 12,345 11,759 14,258 13,060
Nov-94 11,973 11,405 13,558 12,435
Dec-94 11,509 10,962 13,418 12,516
Jan-95 10,654 10,148 12,738 12,038
Feb-95 10,915 10,397 12,756 12,006
Mar-95 11,771 11,211 13,162 12,759
Apr-95 12,052 11,480 13,590 13,243
May-95 12,243 11,662 13,703 13,088
Jun-95 12,666 12,064 13,703 12,861
Jul-95 13,330 12,697 14,439 13,665
Aug-95 13,360 12,726 14,169 13,147
Sep-95 13,642 12,994 14,379 13,408
Oct-95 13,481 12,840 14,206 13,051
Nov-95 13,340 12,706 14,351 13,418
Dec-95 13,590 12,945 14,787 13,961
Jan-96 13,782 13,127 15,123 14,021
Feb-96 13,631 12,983 15,180 14,072
Mar-96 13,994 13,329 15,437 14,374
Apr-96 14,449 13,762 15,917 14,795
May-96 14,327 13,647 15,869 14,526
Jun-96 14,368 13,685 15,974 14,612
Jul-96 13,693 13,042 15,380 14,188
Aug-96 13,553 12,909 15,551 14,222
Sep-96 13,800 13,144 15,884 14,603
Oct-96 13,628 12,981 15,771 14,457
Nov-96 14,035 13,369 16,440 15,036
Dec-96 13,942 13,280 16,491 14,846
Jan-97 13,410 12,773 16,437 14,329
Feb-97 13,599 12,953 16,669 14,567
Mar-97 13,694 13,044 16,706 14,624
Apr-97 13,765 13,111 16,739 14,705
May-97 14,498 13,809 17,727 15,665
Jun-97 15,353 14,623 18,548 16,533

Notes: All Fund performance numbers represent past performance, and are no
guarantee of future results. The Fund's share price and investment return will
fluctuate, so that the value of an investor's shares, when redeemed, may be
worth more or less than their original cost. Total returns include change in
share price and reinvestment of dividends and distributions, if any. Total
return figures "with sales charge" are provided in accordance with SEC
guidelines for comparative purposes for prospective investors.

<TABLE>
<CAPTION>
ASSETS:
<S> <C>
Investment in International Equity Portfolio, at value (Note 1A) ............................ $28,181,038
Receivable for shares of beneficial interest ................................................ 1,593
Other assets ................................................................................ 53,796
-----------
Total assets ............................................................................... 28,236,427
-----------

LIABILITIES:
Payable to affiliates--Shareholder servicing agents' fees (Note 2B) ......................... 5,697
Accrued expenses and other liabilities ...................................................... 11,389
-----------
Total liabilities .......................................................................... 17,086
-----------
NET ASSETS for 2,192,691 shares of beneficial interest outstanding .......................... $28,219,341
===========

NET ASSETS CONSIST OF:
Paid-in capital ............................................................................. $24,654,338
Unrealized appreciation ..................................................................... 3,234,325
Accumulated net realized gain ............................................................... 242,802
Undistributed net investment income ......................................................... 87,876
-----------
Total ...................................................................................... $28,219,341
===========
NET ASSET VALUE AND REDEMPTION PRICE PER SHARE OF BENEFICIAL INTEREST ....................... $12.87
======
COMPUTATION OF OFFERING PRICE:
Maximum Offering Price per share based on a 4.75% sales charge ($12.87/0.9525) .............. $13.51
======
</TABLE>

See notes to financial statements
<PAGE>
- --------------------------------------------------------------------------------
LANDMARK INTERNATIONAL EQUITY FUND
- --------------------------------------------------------------------------------
STATEMENT OF OPERATIONS
FOR THE SIX MONTHS ENDING JUNE 30, 1997 (UNAUDITED)
- --------------------------------------------------------------------------------

<TABLE>
<CAPTION>
INVESTMENT INCOME (Note 1B):
<S> <C> <C>
Dividend Income from International Equity Portfolio ....................... $ 280,548
Interest Income from International Equity Portfolio ....................... 22,819
Other Income: Foreign Tax Reclaim ......................................... 42,333
Allocated Expenses from International Equity Portfolio .................... (146,369) $ 199,331
---------
EXPENSES:
Administrative fees (Note 2A) ............................................. 43,976
Shareholder Servicing Agents' fees (Note 2B) .............................. 36,647
Distribution fees (Note 3) ................................................ 14,659
Expense fees (Note 6) ..................................................... 16,173
---------
Total expenses 111,455
----------
Net investment income .................................................... 87,876
----------
NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS AND FOREIGN EXCHANGE
CURRENCY TRANSACTIONS FROM INTERNATIONAL EQUITY PORTFOLIO:
Net realized gain ......................................................... 252,313
Net change in unrealized appreciation (depreciation) ...................... 2,097,351
----------
Net realized and unrealized gain (loss) from International Equity Portfolio 2,349,664
----------
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS ...................... $2,437,540
==========
</TABLE>

See notes to financial statements
<PAGE>

- --------------------------------------------------------------------------------
LANDMARK INTERNATIONAL EQUITY FUND
- --------------------------------------------------------------------------------
STATEMENT OF CHANGES IN NET ASSETS
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SIX MONTHS
ENDED YEAR ENDED
JUNE 30, 1997 DECEMBER 31,
(UNAUDITED) 1996
----------- -----------
INCREASE (DECREASE) IN NET ASSETS FROM:
OPERATIONS:
<S> <C> <C>
Net investment income ....................................... $ 87,876 $ 59,031
Net realized gain ........................................... 252,313 3,355,063
Net change in unrealized appreciation (depreciation) ........ 2,097,351 (2,347,696)
------------ ------------
Net increase in net assets resulting from operations ........ 2,437,540 1,066,398
------------ ------------
DISTRIBUTIONS TO SHAREHOLDERS FROM:
Net investment income ....................................... -- (50,630)
Net realized gain ........................................... (242,312) (4,844,487)
------------ ------------
Total distributions to shareholders ........................ (242,312) (4,895,117)
------------ ------------
TRANSACTIONS IN SHARES OF BENEFICIAL INTEREST (Note 5):
Net proceeds from sale of shares ............................ 3,930,617 18,623,948
Net asset value of shares issued to shareholders from
reinvestment of dividends .................................. 197,507 4,137,524
Cost of shares repurchased .................................. (10,692,655) (18,503,357)
------------ ------------
Net increase (decrease) in net assets resulting
from transactions in shares of beneficial interest ......... (6,564,531) 4,258,115
------------ ------------
NET INCREASE (DECREASE) IN NET ASSETS ....................... (4,369,303) 429,396

NET ASSETS:
Beginning of period ......................................... 32,588,644 32,159,248
------------ ------------
End of period (including undistributed net
investment income of $87,876 and $0) ....................... $ 28,219,341 $ 32,588,644
============ ============
</TABLE>

See notes to financial statements

- --------------------------------------------------------------------------------
LANDMARK INTERNATIONAL EQUITY FUND
- --------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SIX MONTHS
ENDED YEAR ENDED DECEMBER 31,
JUNE 30, 1997 ------------------------------------------------------
(UNAUDITED) 1996 1995 1994# 1993# 1992#
-------- ---- ---- ---- ---- ----
<S> <C> <C> <C> <C> <C> <C>
Net Asset Value, beginning of period $ 11.79 $ 13.46 $ 11.44 $ 12.93 $ 9.96 $ 10.13
------- ------- ------- ------- ------ -------
Income From Operations:
Net investment income (loss) ........... 0.040 0.028** 0.013** 0.001** (0.003)** 0.052
Net realized and unrealized
gain (loss) ........................... 1.151 0.314** 2.055** (1.483)** 2.973** (0.199)
------- ------- ------- ------- ------ -------
Total from investment operations ..... 1.191 0.342 2.068 (1.482) 2.970 (0.147)
------- ------- ------- ------- ------ --------
Less Distributions From:
Net investment income ................ -- (0.021) (0.048) (0.001) -- (0.023)
In excess of net investment income .... -- -- -- (0.007) -- --
Net realized gain on investments ...... (0.111) (1.991) -- -- -- --
------- ------- ------- ------- ------ -------
Total from distributions .............. (0.111) (2.012) (0.048) (0.008) -- (0.023)
------- ------- ------- ------- ------ -------
Net Asset Value, end of period ......... $ 12.87 $ 11.79 $ 13.46 $ 11.44 $ 12.93 $ 9.96
======= ======= ======= ======= ======= ========
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period
(000's omitted) ....................... $28,219 $32,589 $32,159 $28,848 $28,088 $ 6,711
Ratio of expenses to
average net assets .................... 1.75%*(A) 1.75%(A) 1.75%(A) 1.75%(A) 1.75% 1.75%
Ratio of net investment income (loss)
to average net assets ................. 0.60%* 0.18% 0.10% 0.00% (0.02)% 0.57%
Portfolio turnover (B) ................. -- -- -- 5% 36% 42%
Total return ........................... 10.12%+ 2.59% 18.08% (11.46)% 29.82% (1.45)%

Note: If Agents of the Fund for the periods indicated had not voluntarily
waived a portion of their fees and expenses had been limited to that required
by certain state securities laws for the years ended December 31, 1993 and
1992, the net investment income (loss) per share and the ratios would have
been as follows:

Net investment income (loss) per share . $0.040 $(0.002)** $0.013** $(0.018)** $(0.116)** $(0.016)
Ratios:
Expenses to average net assets ......... 1.75%*(A) 1.94%(A) 1.75%(A) 1.90%(A) 2.50% 2.50%
Net investment income (loss) to
average net assets .................... 0.60%* (0.01)% 0.10% (0.15)% (0.77)% (0.18)%
</TABLE>

*Annualized.
+Not Annualized.
**The per share amounts were computed using a monthly average number of shares
outstanding during the period.
(A)Includes the Fund's share of International Equity Portfolio allocated
expenses for the periods subsequent to May 1, 1994.
(B)Portfolio turnover represents the rate of portfolio activity for the period
while the Fund was making investments directly in securities. The portfolio
turnover rate for the period since the Fund transferred all of its investable
assets to the Portfolio is shown in the Portfolio's financial statements
which are included elsewhere in this report.
#On May 1, 1994, the Fund began investing all of its investable assets in
International Equity Portfolio.

See notes to financial statements

<PAGE>
- --------------------------------------------------------------------------------
LANDMARK INTERNATIONAL EQUITY FUND
- --------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS (UNAUDITED)
- --------------------------------------------------------------------------------

(1) SIGNIFICANT ACCOUNTING POLICIES
Landmark International Equity Fund (the "Fund") is a separate diversified series
of Landmark International Funds (the "Trust"), a Massachusetts business trust.
The Trust is registered under the Investment Company Act of 1940, as amended, as
a diversified, open-end, management investment company. The Fund invests all of
its investable assets in International Equity Portfolio (the "Portfolio"), a
management investment company for which Citibank, N.A. ("Citibank") serves as
Investment Adviser. The Landmark Funds Broker-Dealer Services, Inc. ("LFBDS")
acts as the Fund's Administrator and Distributor. Citibank also serves as
Sub-Administrator and makes Fund shares available to customers as Shareholder
Servicing Agent.

The Trust seeks to achieve the Fund's investment objective of long-term growth
of capital by investing all of its investable assets in the Portfolio, an
open-end, diversified management investment company having the same investment
objective and policies and substantially the same investment restrictions as the
Fund. The value of such investment reflects the Fund's proportionate interest
(approximately 60.2% at June 30, 1997) in the net assets of the Portfolio.

The preparation of financial statements in accordance with generally accepted
accounting principles requires management to make estimates and assumptions that
affect the reported amounts and disclosures in the financial statements. Actual
results could differ from those estimates.

The financial statements of the Portfolio, including the portfolio of
investments, are contained elsewhere in this report and should be read in
conjunction with the Fund's financial statements.

The Fund has approval to issue Class A and Class B shares as described more
fully in the Fund's prospectus. No Class B shares have yet to be offered,
therefore the information presented in these financial statements relates solely
to Class A shares.

The following significant accounting policies consistently followed by the Fund
are as follows:

A. INVESTMENT VALUATIONS -- Valuation of securities by the Portfolio is
discussed in Note 1A of the Portfolio's Notes to Financial Statements which are
included elsewhere in this report.

B. ACCOUNTING FOR INVESTMENTS -- The Fund earns income, net of Portfolio
expenses, daily based on its investment in the Portfolio. All the net investment
income, realized and unrealized gain or loss of the Portfolio is allocated pro
rata, based on respective ownership interests, among the Fund and the other
investors in the Portfolio at the time of such determination.

D. EXPENSES -- The Fund bears all costs of its operations other than expenses
specifically assumed by Citibank and LFBDS. Expenses incurred by the Trust with
respect to any two or more funds or series are allocated in proportion to the
average net assets of each fund, except when allocations of direct expenses to
each fund can otherwise be made fairly. Expenses directly attributable to a fund
are charged to that fund. The Fund's share of the Portfolio's expenses are
charged against and reduce the amount of the Fund's investment in the Portfolio.

E. DISTRIBUTIONS -- Distributions to shareholders are recorded on ex-dividend
date. The amount and character of income and net realized gains to be
distributed are determined in accordance with income tax rules and regulations,
which may differ from generally accepted accounting principles. These
differences are attributable to permanent book and tax accounting differences.
Reclassifications are made to the Fund's capital accounts to reflect income and
net realized gains available for distribution (or available capital loss
carryovers) under income tax rules and regulations. For the year ended December
31, 1996, the Fund reclassified $27,437 from undistributed net investment
income, $95,646 from accumulated loss on investments and $123,083 to
paid-in-capital.

(2) ADMINISTRATIVE SERVICES PLAN
The Fund has adopted an Administrative Services Plan (the "Administrative
Services Plan") which provides that the Fund may obtain the services of an
Administrator, and one or more Shareholder Servicing Agents and other Servicing
Agents, and may enter into agreements providing for the payment of fees for such
services. Under the Administrative Services Plan, the aggregate of the fee paid
to the Administrator by the Fund, the fees paid to the Shareholder Servicing
Agents by the Fund and the Basic Distribution Fee paid by the fund to the
Distributor under the distribution Plan may not exceed 0.65% of the Fund's
average daily net assets on an annualized basis for the Fund's then-current
fiscal year.

A. ADMINISTRATIVE FEES -- Under the terms of an Administrative Services
Agreement, the administrative services fees paid to the Administrator, as
compensation for overall administrative services, including general office
facilities, may not exceed an annual rate of 0.30% of the Fund's average daily
net assets. The Administrative fees amounted to $43,976 for the six months ended
June 30, 1997. Citibank acts as Sub-Administrator and performs such duties and
receives such compensation from LFBDS as from time to time is agreed to by LFBDS
and Citibank. The Fund pays no compensation directly to any Trustee or any
officer who is affiliated with the Administrator, all of whom receive
remuneration for their services to the Fund from the Administrator or its
affiliates. Certain officers and a Trustee of the Fund are officers and
directors of the Administrator or its affiliates.

B. SHAREHOLDER SERVICING AGENTS' FEES -- The Fund has entered into shareholder
servicing agreements with each Shareholder Servicing Agent pursuant to which the
Shareholder Servicing Agent acts as an agent for its customers and provides
other related services. For their services, each Shareholder Servicing Agent
receives fees from the Fund, which may be paid periodically, which may not
exceed, on an annualized basis, an amount equal to 0.25% of the average daily
net assets of the Fund represented by shares owned during the period for which
payment is being made by investors for whom such Shareholder Servicing Agent
maintains a servicing relationship. The Shareholder Servicing Agents' fees,
computed at an annual rate of 0.25%, amounted to $36,647 for the six months
ended June 30, 1997.

(3) DISTRIBUTION FEES
The Trust has adopted a Plan of Distribution pursuant to Rule 12b-1 under the
Investment Company Act of 1940, as amended, in which the Fund compensates the
Distributor at an annual rate not to exceed 0.10% of the Fund's average daily
net assets for distribution of the Fund's shares. The Distributor may also
receive an additional fee from the Fund at an annual rate not to exceed 0.05% of
the Fund's average daily net assets in anticipation of, or as reimbursement for,
advertising expenses incurred by the Distributor in connection with the sale of
shares of the Fund. No payment of such additional fee has been made during the
period. The Distribution fees amounted to $14,659 for the six months ended June
30, 1997.

(4) INVESTMENT TRANSACTIONS
Increase and decrease in the Fund's investment in the Portfolio for the six
months ended June 30, 1997 aggregated $4,026,192 and $10,985,156, respectively.

(5) SHARES OF BENEFICIAL INTEREST
The Declaration of Trust permits the Trustees to issue an unlimited number of
full and fractional Shares of Beneficial Interest (par value $0.00001).
Transactions in shares of beneficial interest were as follows:

SIX MONTHS
ENDED YEAR ENDED
JUNE 30, 1997 DECEMBER 31,
(UNAUDITED) 1996
----------- ------------
Shares sold ............ 340,443 1,410,053
Shares issued to shareholders
from reinvestment of
dividends ............. 15,564 339,891
Shares repurchased ..... (926,777) (1,376,401)
------- ---------
Net increase (decrease) (570,770) 373,543
======= =========
(6) EXPENSE FEES
LFBDS has entered into an expense agreement with the Fund. LFBDS had agreed to
pay all of the ordinary operating expenses (excluding interest, taxes, brokerage
commissions, litigation costs or other extraordinary costs or expenses) of the
Fund, other than fees paid under the Administrative Services Agreement,
Distribution Agreement and Shareholder Servicing Agreements and other than
amortization of expenses related to the organization of the Fund. The Agreement
may be terminated by either party upon not less than 30 days nor more than 60
days written notice.

The Fund has agreed to pay to LFBDS an expense fee, on an annual basis, accrued
daily and paid monthly; provided, however, that such fee shall not exceed the
amount such that immediately after any such payment the aggregate ordinary
operating expenses of the Fund, including expenses allocated from the Portfolio
less expenses waived by the Administrator, would on an annual basis exceed an
agreed upon rate, currently 1.75% of average daily net assets.

- --------------------------------------------------------------------------------
INTERNATIONAL EQUITY PORTFOLIO
- --------------------------------------------------------------------------------
PORTFOLIO OF INVESTMENTS JUNE 30, 1997 (UNAUDITED)
- --------------------------------------------------------------------------------

ISSUER SHARES VALUE
- --------------------------------------------------------------------------------

- --------------------------------------------------------------------------------
COMMON STOCKS - 96.9%
- --------------------------------------------------------------------------------

AMERICAN DEPOSITORY RECEIPTS/ADR'S - 1.7%

Empressa ICA Sociedad*
Building & Construction .................. 2,891 $ 46,437
Gazprom*
Energy Resources ......................... 2,000 33,500
Lukoil Oil Co.
Energy Resources ......................... 4,000 309,000
Mosenergo*
Electrical & Gas Utilities 2,700 112,050
Surgutneftegaz
Energy Resources .......................... 1,500 79,875
Telefonos de Mexico
Telephone Utilities ....................... 1,970 94,068
Trade House Gum
Retailing ................................ 400 32,000
Vimpel Communications SPAD*
Telephone Utilities ...................... 2,500 95,000
---------
801,930
---------
GLOBAL DEPOSITORY RECEIPTS/GDR'S - 0.1%
Samsung Electronics Co. Ltd.
Electrical & Electronics ................ 231 13,282
---------

AUSTRALIA - 1.8%
Australia & New Zealand Bank
Banking ................................. 14,100 105,740
Broken Hill Proprietary
Energy Sources .......................... 10,500 154,962
Centaur Mining & Exploration Ltd.*
Gold Mines .............................. 57,000 73,402
C.S.R. Ltd.
Multi-Industry .......................... 21,400 83,160
Mayne Nickless Ltd.
Multi-Industry .......................... 10,700 62,573
News Corp. Ltd.
Business & Public ....................... 20,011 96,256
North Limited
Non-Ferrous Metals ...................... 21,500 82,245
Pacific Dunlop
Multi-Industry .......................... 31,000 92,051
Woodside Petroleum Ltd.
Energy Sources .......................... 12,500 107,944
---------
858,333
---------
BRAZIL - 2.6%
Aracruz Celulose*
Forest Products & Paper ................. 29,001 58,724
Banco Bradesco S.A. *
Banking ................................ 5,668,591 57,128
CIA Cervejaria Brahma
Beverages & Tobacco ..................... 66,181 50,408
CIA Energetica de Minas
Electrical & Gas Utilities ............. 1,039,347 53,580
CIA Vale do Rio Doce Convertible*
Steel .................................. 2,476 23
CIA Vale do Rio Doce Preferred*
Steel .................................. 2,476 54,759
Electrobras*
Electrical & Gas Utilities ............. 133,000 74,369
Light Servicos de Electrci
Electrical & Gas Utilities ............. 142,000 70,663
Petroleo Brasileiro S.A.
Energy Sources ......................... 348,015 96,657
Telecommunicacoes Brasileiras
Telephone Utilities .................... 3,530,000 535,434
Telecommunicacoes de
Sao Preferred*
Telephone Utilities .................... 262,915 85,962
Uniminas*
Steel .................................. 4,583,236 51,044
White Martins S.A.*
Energy Sources ......................... 18,318 53,596
----------
1,242,347
----------
CANADA - 0.2%
Alliance Forest Products International*
Forest Products & Paper ................ 3,000 73,205
MacMillan Bloee Ltd.
Forest Products & Paper ................ 27 370
St. Lauren Paperboard Inc.*
Forest Products & Paper ................ 1,005 15,645
---------
89,220
---------
DENMARK - 1.3%
Bang & Olufsen Holding B
Instruments & Components ............... 550 33,994
Carli Gry International AS
Textiles ............................... 2,740 154,896
Falck AS
Multi-lndustry ......................... 2,450 129,268
Jyske Bank AS
Banking ................................ 800 68,984
Kobenhavns Lufthavne
Airlines ............................... 1,225 130,080
Novo-Nordisk AS
Pharmaceuticals & Health ............... 945 103,140
---------
620,362
---------
FRANCE - 6.0%
Accor French Ord
Leisure & Tourism ....................... 999 149,675
Alcatel Alsthom
Electrical & Electronics ................ 3,400 426,049
AXA Company
Insurance ............................... 3,274 203,736
Axime (Ex Segin)
Financial Services ...................... 1,472 174,178
BIC
Household Appliances .................... 933 152,653
Carrefour Supermarche
Retailing ............................... 354 257,236
Compagnie de Saint Gobain
Multi-Industry .......................... 1,061 154,811
Louis Vuitton-Moet Hennesy
Beverages & Tobacco ..................... 775 208,479
Pechiney S.A. A
Non-Ferrous Metals ...................... 2,122 83,638
Printemps
Retailing ............................... 403 193,764
Rhone Polenc
Chemicals ............................... 4,422 180,690
Sanofi S..A.
Pharmaceuticals & Health 1,648 161,616
Societe National Elf-Aqita
Energy Sources .......................... 1,414 152,630
Total S.A.--SERIES B
Energy Sources .......................... 3,230 326,657
---------
2,825,812
---------
GERMANY - 11.6%
Bayer AG
Chemicals ............................... 9,050 348,030
Bayerische Vereinsbank AG
Banking ................................. 8,880 363,302
Buderus
Machinery & Engineering 432 237,969
Daimler-Benz AG*
Automobiles ............................. 6,380 518,015
Dresdner Bank AG
Banking ................................. 8,490 293,759
Dyckerhoff
Building Materials ...................... 624 225,575
Iwka
Machinery & Engineering 1,115 324,376
Metro AG
Retailing ............................... 1,370 150,227
Preussag AG
Multi-Industry .......................... 1,502 439,978
Rhoen-Klinikum
Pharmaceuticals & Health ................ 2,420 319,380
Schering AG
Pharmaceuticals & Health ................ 4,094 437,766
SGL Carbon AG
Non-Ferrous Metals ...................... 1,344 184,161
Suedezucker AG - Vorzug
Food & Household Products ............... 562 301,517
Tarkett International AG
Food & Household Products ............... 1 25
Veba AG
Electrical & Gas Utilities .............. 11,200 629,809
Volkswagen AG
Automobiles ............................. 1,154 647,604
---------
58,618 5,421,493
---------
ITALY - 3.5%
Assicurazione Generali Itl
Insurance ............................... 7,152 129,841
Eni Spa
Energy Sources .......................... 69,755 394,314
Fiat Spa
Automobiles ............................. 28,843 103,674
Instituto Banc San Paolo Torina
Banking ................................. 43,115 311,140
Instituto Finanz Industriale
Multi-Industry .......................... 6,139 77,329
Italgas
Electrical & Gas Utilities 17,697 56,302
Mediaset Spa
Business & Public ....................... 17,489 73,872
Stet D Risp
Telephone Utilities ..................... 23,556 81,567
Telecom Italia Mobile
Telephone Utilities ..................... 100,617 323,601
Unicem Spa
Building Materials ...................... 12,000 84,206
---------
1,635,846
---------
JAPAN - 30.2%
Canon Inc.
Electrical & Electronics ................ 16,000 436,001
Chugai Pharm Co.
Pharmaceuticals & Health ................ 35,000 314,860
Dai-Ichi Kangyo Bank
Banking ................................. 20,000 272,500
Dai Nippon Printing Co. Ltd.
Multi-Industry .......................... 10,000 226,210
Ebaba Corporation
Machinery & Engineering ................. 16,000 240,359
Fanuc Co.
Machinery & Engineering ................. 12,000 461,155
Fuji Bank
Banking ................................. 20,000 300,449
Fujitsu Ltd.
Instruments & Components ................ 33,000 458,273
Hitachi Ltd.
Electrical & Electronics ................ 25,000 279,488
Honda Motor Co. Ltd.
Automobiles ............................. 14,000 421,852
Industrial Bank of Japan
Banking ................................. 360 5,596
Japan Tobacco Inc.
Beverages & Tobacco ..................... 56 442,640
Kawasaki Steel
Steel ................................... 110,000 358,357
Marubeni Corp.
International Trade ..................... 73,000 331,543
Mitsubishi Heavy
Machinery & Engineering ................. 70,000 537,404
Mitsubishi Trust
Financial Services ...................... 21,000 331,980
Mitsui Fudosan
Real Estate ............................. 35,000 482,991
Mitsui Mining & Smelting
Non-Ferrous ............................. 32,000 142,260
Nippon Oil Co.
Energy Sources .......................... 45,000 246,430
Nippon Paper Industries Co.
Forest Products & Paper ................. 50,000 289,533
Nippon Telegraph & Telephone Co.
Telephone Utilities ..................... 53 509,193
NKK Corporation
Steel ................................... 100,000 214,857
Nomura Securities Co. Ltd.
Financial Services ...................... 36,000 496,791
NTT Data Comm Systems Corp.
Telephone Utilities ..................... 70 270,842
Ohbayashi-Gumi Corp.
Building & Construction ................. 60,000 401,939
Osaka Gas Co. Ltd.
Electrical & Gas Utilities .............. 100,000 287,349
Sankyo Co. Ltd.
Pharmaceuticals & Health ................ 14,000 470,764
Seven Eleven Japan Ltd.
Retailing ............................... 7,000 529,457
Sharp Corp.
Electrical & Electronics ................ 16,000 220,796
Shin-Etsu Chemical Co.
Chemicals ............................... 16,800 446,064
Sony Corp.
Electrical & Electronics ................ 5,000 436,264
Sumitomo Bank
Banking ................................. 20,000 328,399
Sumitomo Electric Industries
Industrial Components ................... 26,000 436,002
TDK Corp.
Instruments & Components ................ 5,000 367,265
The Bank of Tokyo Mitsubishi
Banking ................................. 23,050 463,033
Tokio Marine & Fire
Insurance ............................... 36,000 471,636
Tokyo Electron Ltd.
Multi-Industry .......................... 8,800 421,189
Toray Inds Inc.
Textiles ................................ 22,000 156,985
Toyota Motor Co.
Automobiles ............................. 16,000 472,335
Yamato Transport Co. Ltd.
Road & Rail Transport ................... 11,000 137,385
----------
14,118,426
==========
MEXICO - 0.9%
AIFA S.A. A*
Multi-Industry .......................... 12,948 88,178
Apasco S.A.*
Building Materials ...................... 6,000 42,900
Cemex S.A.*
Building Materials ...................... 22,441 97,459
CIFRA C
Retailing ............................... 17,220 27,529
CIFRA S.A. DE CV A
Retailing ............................... 2,106 3,891
Desc S.A. Series C
Multi-Industry .......................... 84 605
Desc Sociedad De Fomento In
Multi-Industry .......................... 8,394 61,285
Grupo Carso S.A.
Multi-Industry .......................... 7,200 50,120
Hylsamex S.A.
Steel ................................... 5,263 27,096
Kimberly Clark Mex
Pharmaceuticals & Health ................ 5,610 22,562
----------
421,625
----------
NETHERLANDS - 6.4%
Akzo Dutch
Chemicals ............. ................. 2,020 277,022
Baan Company NV*
Data Processing & Reproduction ......... 2,344 158,935
BeSemiconductor Ind*
Instruments & Components ................ 6,970 100,561
Elsevier
Business & Public ....................... 17,918 299,622
ING Groep NV
Insurance ............................... 8,473 390,928
Philips Electronics NV
Industrial Components ................... 5,235 375,243
Royal Dutch Petroleum Co. ADRs
Energy Sources .......................... 14,508 755,170
Unilever
Food & Household Products ............... 733 154,410
Vedior NV*
Retailing ............................... 622 $16,457
Vendex International NV
Retailing ............................... 4,450 244,211
Verenigde Nederlandse
Business & Public ....................... 10,212 225,949
----------
2,998,508
----------
SPAIN - 5.2%
Acerinox SA
Multi-Industry .......................... 523 98,039
Asturiana de Zinc*
Non-Ferrous Metals ...................... 7,523 159,357
Banco Central Hispano
Banking ................................. 5,071 185,570
Banco De Santander
Banking ................................. 12,162 374,875
Bankinter-Banco Interc Es
Banking ................................. 1,201 212,004
Centros Comerciales Pryca
Retailing ............................... 5,372 116,347
Corp Financiera Reunida*
Financial Services ...................... 23,453 98,723
Cortefiel SA
Retailing ............................... 1,789 78,100
Empresa Nac de Electricidad
Electrical & Gas Utilities .............. 3,790 318,300
Sol Melia S.A.
Leisure & Tourism ....................... 2,667 109,550
Telefonica
Telephone Utilities ..................... 18,399 532,145
Vallehermoso S.A.
Real Estate ............................. 4,680 126,301
----------
2,409,311
----------
SWEDEN - 0.7%
Electrolux
Household Appliances .................... 1,586 114,479
Ericsson AB
Electrical & Electronics ................ 293 11,541
Kinnevik AB
Machinery & Engineering ................. 283 7,890
Pharmacia & UpJohn
Pharmaceuticals & Health ................ 2,237 75,525
Skandia Forsakrings AB
Insurance ............................... 2,729 100,609
----------
310,044
----------
SWITZERLAND - 6.9%
Credit Suisse Group-Reg
Banking ................................. 3,100 398,309
Holderbank Finan Glaris-B
Building Materials ...................... 440 415,789
Nestle
Food & Household Products ............... 401 529,244
Roche Holding AG-Genussch
Pharmaceuticals & Health ................ 87 787,251
Schweizerische Bankverein-R
Banking ................................. 1,566 419,052
Sulzer AG
Instruments & Components ................ 299 256,116
Zurich Versicherungs-Reg
Insurance ............................... 1,091 434,366
----------
3,240,127
----------
UNITED KINGDOM - 17.8%
Abbey National
Banking ................................. 17,211 234,989
Avis Europe PLC
Road & Rail Transport ................... 58,101 132,051
BAT Industries
Multi-Industries ........................ 25,916 231,938
BG PLC
Electrical & Gas Utilities .............. 50,049 184,168
British Aerospace PLC
Aerospace & Defense ..................... 8,693 193,450
British Petroleum Co. PLC
Energy Sources .......................... 48,218 599,330
British Telecommunications PLC
Telephone Utilities ..................... 95,792 711,363
Cable & Wireless
Telephone Utilities ..................... 24,330 223,823
Caradon PLC
Miscellaneous Materials ................. 36,000 120,783
Centra
Electrical & Gas Utilities .............. 77,049 93,973
Commercial Union Assurance
Insurance ............................... 16,800 176,649
Courtaulds PLC
Chemicals ............................... 28,498 160,383
General Electric PLC
Electrical & Electronics ................ 34,241 204,676
Glaxo Wellcome PLC
Pharmaceuticals & Health ................ 24,267 501,031
Hillsdown Holdings PLC
Food & Household Products ............... 51,000 143,511
HSBC Holdings PLC
Banking ................................. 10,165 312,863
Kingfisher PLC
Retailing ............................... 20,201 229,396
Ladbroke Group
Leisure & Tourism ....................... 56,792 222,219
Lloyds TSB Group PLC
Banking ................................. 73,184 750,627
Logica PLC
Business & Public ....................... 19,514 225,005
London International Group
Pharmaceuticals & Health ................ 88,086 253,735
Marks & Spencer PLC
Retailing ............................... 33,525 277,987
National Power PLC
Electrical & Gas Utilities .............. 24,500 212,944
Prudential Corp.
Insurance ............................... 34,058 329,758
RMC Group PLC
Building Materials ...................... 11,000 178,669
Royal & Sun Alliance Ins.
Insurance ............................... 30,647 226,058
Sainsbury (J) PLC
Retailing ............................... 33,982 206,241
Severn Trent ORD
Electrical & Gas Utilities .............. 11,194 144,914
Smiths Industries PLC
Machinery & Engineering ................. 5,978 76,594
Tomkins PLC
Multi-Industry .......................... 51,041 220,964
Unilever Limited
Food & Household Products ............... 6,000 171,983
Zeneca Group PLC
Pharmaceuticals & Health ................ 10,726 354,686
----------
8,306,761
----------
TOTAL COMMON STOCKS
(Identified Cost $40,216,180) 45,313,427
==========
- --------------------------------------------------------------------------------
SHORT-TERM OBLIGATIONS - 2.7%
- --------------------------------------------------------------------------------

Salomon Repurchase Agreement
5.90% due 7/01/97 proceeds at
maturity $1,297,521 (collateralized
by $366,322 U.S. Treasury Note
8.75% due 8/15/20, $655,925
U.S. Treasury Note 9.125% due 5/15/18,
$216,565 U.S. Treasury Note 9.00%
due 11/15/18 and $82,996 U.S.
Treasury Bond 7.50% due 11/15/16) 1,297,323
-----------
TOTAL INVESTMENTS
(Identified Cost $41,513,503) 99.6% 46,610,750
OTHER ASSETS,
LESS LIABILITIES ......................... 0.4 173,230
----- -----------
NET ASSETS ................................ 100.0% $46,783,980
===== ===========

Forward currency contracts which were open at June 30, 1997 are as follows:

DELIVERY
MARKET AGGREGATE DATE OF UNREALIZED
CURRENCY COUNTRY VALUE FACE VALUE CONTRACTS APPRECIATION
-------- ------- ----- ---------- --------- ------------
Deutsche Mark
(Sell) ... Germany $ 843,966 $ 850,000 Dec-97 $ 6,034
Franc (Sell) France 449,198 450,000 Dec-97 802
Franc (Sell) Switzerland 157,730 160,000 Dec-97 2,270
Guilder (Sell) Netherlands 382,190 385,000 Dec-97 2,810
Yen (Sell) Japan 1,762,170 1,775,000 Dec-97 12,830
-------
$24,746
=======
*Non income producing

See notes to financial statements

<PAGE>
- --------------------------------------------------------------------------------
INTERNATIONAL EQUITY PORTFOLIO
- --------------------------------------------------------------------------------
STATEMENT OF ASSETS AND LIABILITIES JUNE 30, 1997 (UNAUDITED)
- --------------------------------------------------------------------------------

INVESTMENT INCOME:
ASSETS:
Investments at value (Note 1A) (Identified Cost, $41,513,503) ... $46,610,750
Cash ............................................................ 402
Receivable for forward contracts ................................ 24,746
Receivable for investments sold ................................. 952,968
Dividends and interest receivable ............................... 177,966
-----------
Total assets ................................................... 47,766,832
-----------
LIABILITIES:
Payable for securities purchased ................................ 945,355
Payable to affiliates--Investment advisory fees (Note 2) ........ 35,035
Other liabilities ............................................... 2,462
-----------
Total liabilities .............................................. 982,852
-----------
NET ASSETS ...................................................... $46,783,980
===========
REPRESENTED BY:
Paid-in capital for beneficial interests ........................ $46,783,980
===========

See notes to financial statements
<PAGE>
- --------------------------------------------------------------------------------
INTERNATIONAL EQUITY PORTFOLIO
- --------------------------------------------------------------------------------
STATEMENT OF OPERATIONS
FOR THE SIX MONTHS ENDED JUNE 30, 1997 (UNAUDITED)
- --------------------------------------------------------------------------------

Dividends (net of foreign withholding tax of $113,630) $ 445,172
Interest .............................................. 34,569
---------
Total investment income .............................. $ 479,741

EXPENSES:
Investment advisory fees (Note 2) ..................... 228,303
Administrative fees (Note 3) .......................... 11,415
Expense fees (Note 6) ................................. 4,813
---------
Total expenses ....................................... 244,531

Less aggregate amount waived by Investment Adviser
and Administrator (Note 2 and 3) (13,915) 230,616
--------- -----------
Net investment income ................................ 249,125

NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS:
Net realized gain (loss) from investment transactions . 503,054
Net realized loss on foreign exchange
currencies transactions .............................. (109,223)
---------
Net realized gain (loss) ............................. 393,831
----------
Unrealized appreciation (depreciation) of investments--
Beginning of period .................................. 1,419,174
End of period ........................................ 5,097,247 3,678,073
---------
Translation of other assets and liabilities denominated
in foreign currencies--net ......................... (115,525)
----------
Net change in unrealized appreciation (depreciation) . 3,562,548
----------
Net realized and unrealized gain on investments ...... 3,956,379
----------
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS .. $4,205,504
==========

See notes to financial statements
<PAGE>
- --------------------------------------------------------------------------------
INTERNATIONAL EQUITY PORTFOLIO
- --------------------------------------------------------------------------------
STATEMENT OF CHANGES IN NET ASSETS
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>

SIX MONTHS ENDED YEAR ENDED
JUNE 30, 1997 DECEMBER 31,
(UNAUDITED) 1996
---------- -----------
INCREASE (DECREASE) IN NET ASSETS FROM:
OPERATIONS:
<S> <C> <C>
Net investment income ........................................... $ 249,125 $ 306,984
Net realized gain on investments and foreign exchange transactions 393,831 3,632,070
Net change in unrealized appreciation (depreciation) of investments and
foreign currency exchange ...................................... 3,562,548 (2,379,237)
----------- -----------
Net increase in net assets resulting from operations ........... 4,205,504 1,559,817
----------- -----------
CAPITAL TRANSACTIONS:
Proceeds from contributions ..................................... 6,484,332 28,377,160
Value of withdrawals ............................................ (12,962,097) (20,994,299)
---------- -----------
Net increase (decrease) in net assets from capital transactions (6,477,765) 7,382,861
---------- -----------
NET INCREASE (DECREASE) IN NET ASSETS: .......................... (2,272,261) 8,942,678
NET ASSETS:
Beginning of period ............................................. 49,056,241 40,113,563
---------- -----------
End of period ................................................... $46,783,980 $49,056,241
=========== ===========
</TABLE>

See notes to financial statements

<PAGE>

- --------------------------------------------------------------------------------
INTERNATIONAL EQUITY PORTFOLIO
- --------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>

SIX MONTHS MAY 1, 1994
ENDED YEAR ENDED DECEMBER 31, (COMMENCEMENT
JUNE 30, 1997 ---------------------- OF OPERATIONS) OF
(UNAUDITED) 1996 1995 DECEMBER 31, 1994
---------- -------- -------- ---------------
RATIOS / SUPPLEMENTAL DATA:
<S> <C> <C> <C> <C>
Net Assets, end of period (000's omitted) .... $46,784 $49,056 $40,114 $32,153
Ratio of expenses to average net assets ...... 1.00%* 1.11% 1.20% 1.22%*
Ratio of net investment income
to average net assets ....................... 1.08* 0.65% 0.59% 0.60%*
Portfolio turnover ........................... 58% 109% 51% 25%
Average commission rate per share (A) ........ $0.0013 $0.0321 N/A N/A

Note: If the Agents of the Portfolio had not voluntarily waived a portion of their fees for the periods
indicated, the ratios would have been as follows:

Expenses to average net assets ............... 1.06%* 1.13% N/A N/A
Net investment income to average net assets .. 1.02%* 0.63% N/A N/A
</TABLE>

*Annualized
(A)The average commission rate paid is applicable for Funds that invest
greater than 10% of average net assets in equity transactions on which
commissions are charged. This disclosure is required for fiscal periods
beginning on or after September 1, 1995.

See notes to financial statements
<PAGE>
- --------------------------------------------------------------------------------
INTERNATIONAL EQUITY PORTFOLIO
- --------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS (UNAUDITED)
- --------------------------------------------------------------------------------

(1) SIGNIFICANT ACCOUNTING POLICIES
International Equity Portfolio (the "Portfolio"), a separate series of The
Premium Portfolios (the "Portfolio Trust"), is registered under the Investment
Company Act of 1940, as amended, as a diversified, open-end management
investment company which was organized as a trust under the laws of the State of
New York. The Declaration of Trust permits the Trustees to issue beneficial
interests in the Portfolio. The Investment Adviser of the Portfolio is Citibank
N.A. ("Citibank"). Signature Financial Group (Grand Cayman), Ltd. ("SFG") acts
as the Portfolio's Administrator. The preparation of financial statements in
accordance with U.S. generally accepted accounting principles requires
management to make estimates and assumptions that affect the reported amounts
and disclosures in the financial statements. Actual results could differ from
those estimates. The following significant accounting policies consistently
followed by the Portfolio are as follows

A. INVESTMENT SECURITY VALUATIONS -- Equity securities in the portfolio are
valued at the last sale price on the exchange on which they are primarily
traded, or at the quoted bid price for securities in which there were no sales
during the day, or for unlisted securities not reported on the NASDAQ system.
Securities listed on a foreign exchange are valued at the last quoted sale price
available. Bonds and other fixed income securities (other than short-term
obligations maturing in sixty days or less) in the portfolio are valued on the
basis of valuations furnished by a pricing service approved by the Board of
Trustees, the use of which has been approved by the Trustees. 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
exchanges or over-the-counter prices. Short-term obligations maturing in sixty
days or less, are valued at amortized cost, which constitutes fair value as
determined by the Trustees. Portfolio securities for which there are no such
quotations or valuations are valued at fair value as determined in good faith by
or at the direction of the Trustees. 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 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 of fund valuation, such securities will be valued at fair
value in accordance with procedures established by and under the general
supervision of the Trustees.

B. FOREIGN CURRENCY TRANSLATION -- The accounting records of the Portfolio are
maintained in U.S. dollars. Foreign currency amounts are translated into U.S.
dollars at the current rate of exchange 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. The Fund does not isolate that portion of the
results of operations resulting from changes in foreign exchange rates on
investments from the fluctuations arising from changes in market prices of
securities held. Such fluctuations are included with the net realized and
unrealized gain or loss from investments. Translation of foreign currency
includes net exchange gains and losses, disposition of foreign currency and the
difference between the amount of investment income, expenses and foreign taxes
withheld recorded and the actual amount received or paid.

C. FORWARD FOREIGN CURRENCY EXCHANGE CONTRACTS -- The Portfolio 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 Portfolio could
be exposed to risks if the counter-parties to the contracts are unable to meet
the terms of their contracts and from unanticipated movements in the value of a
foreign currency relative to the U.S. Dollar. Forward foreign currency exchange
contracts are adjusted by the daily exchange rate of the underlying currency and
any gains or losses are recorded for financial statement purposes as unrealized
gains or losses until the contract settlement date.

D. ACCOUNTING FOR INVESTMENTS -- Securities transactions are accounted for on
the trade date. Realized gains and losses on security transactions are
determined on the identified cost method. Dividend income and other
distributions from portfolio securities are recorded on the ex-dividend date.
Dividend income is recorded net of foreign taxes withheld where recovery of such
taxes is not assured. Interest income is accrued daily.

E. U.S. FEDERAL INCOME AND OTHER TAXES -- The Portfolio is considered a
partnership under the U.S. Internal Revenue Code. Accordingly, no provision for
federal income taxes is necessary. The Portfolio may be subject to taxes imposed
by countries in which it invests. Such taxes are generally based on income
and/or capital gains earned or repatriated. Taxes are accrued and applied to net
investment income and net realized gains as such income and/or gains are earned.

F. EXPENSES -- The Portfolio bears all costs of its operations other than
expenses specifically assumed by Citibank and SFG. Expenses incurred by the
Portfolio Trust with respect to any two or more portfolios or series are
allocated in proportion to the average net assets of each portfolio, except when
allocations of direct expenses to each portfolio can otherwise be made fairly.
Expenses directly attributable to a portfolio are charged to that portfolio.

G. REPURCHASE AGREEMENTS -- It is the policy of the Portfolio to require the
custodian bank to take possession, to have legally segregated in the Federal
Reserve Book Entry System or to have segregated within the custodian bank's
vault, all securities held as collateral in support of repurchase agreements.
Additionally, procedures have been established by the Portfolio to monitor, on a
daily basis, the market value of the repurchase agreement's underlying
investments to ensure the existence of a proper level of collateral.

(2) INVESTMENT ADVISORY FEES
The investment advisory fees paid to Citibank, as compensation for overall
investment management services, amounted to $228,303, of which $2,500 was
voluntarily waived, for the six months ended June 30, 1997. The investment
advisory fees are computed at the annual rate of 1.00% of the Portfolio's
average daily net assets.

(3) ADMINISTRATIVE FEES
Under the terms of an Administrative Services Agreement, the administrative
services fees paid to the Administrator, as compensation for overall
administrative services including general office facilities, is computed at an
annual rate of 0.05% of the Portfolio's average daily net assets. The
administrative fees amounted to $11,415 all of which was voluntarily waived, for
the six months ended June 30, 1997. The Portfolio pays no compensation directly
to any Trustee or any officer who is affiliated with the Administrator, all of
whom receive remuneration for their services to the Portfolio from the
Administrator or its affiliates. Certain officers and a Trustee of the Portfolio
are officers and directors of the Administrator or its affiliates.

(4) PURCHASES AND SALES OF INVESTMENTS
For the six months ended June 30, 1997, purchases and sales of investment
securities, other than short-term investments, aggre-gated $25,742,675 and
$30,562,895, respectively.

(5) FEDERAL INCOME TAX BASIS
OF INVESTMENTS
The cost and unrealized appreciation/(depreciation) in value of the investment
securities owned at June 30, 1997 as computed on a federal income tax basis, are
as follows:

Aggregate cost ..................... $41,513,503
===========
Gross unrealized appreciation ...... $ 6,090,246
Gross unrealized depreciation ...... (992,999)
-----------
Net unrealized appreciation ........ $ 5,097,247
===========
(6) EXPENSE FEES
SFG has entered into an expense agreement with the Portfolio. SFG has agreed to
pay all of the ordinary operating expenses (excluding interest, taxes, brokerage
commissions, litigation costs or other extraordinary costs or expenses) of the
Portfolio, other than fees paid under the Advisory Agreement, and Administrative
Services Agreement. The Agreement may be terminated by either party upon not
less than 30 days nor more than 60 days written notice.

The Portfolio has agreed to pay SFG an expense fee, on an annual basis, accrued
daily and paid monthly; provided, however, that such fee shall not exceed the
amount such that immediately after any such payment the aggregate expenses of
the Portfolio less expenses waived by the Administrator would on an annual basis
exceed an agreed upon rate, which as of July 1, 1996 is 1.00% of average daily
net assets.

(7) FINANCIAL INSTRUMENTS
The Portfolio may trade financial instruments with off-balance sheet risk in the
normal course of its investing activities and to assist in managing exposure to
market risks such as interest rates and foreign currency exchange rates. These
financial instruments include forward foreign currency exchange contracts. The
notional or contractual amounts of these instruments represent the investment
the Portfolio has in particular classes of financial instruments and does not
necessarily represent the amounts potentially subject to risk. The measurement
of the risks associated with these instruments is meaningful only when related
and offsetting transactions are considered.

(8) LINE OF CREDIT
The Portfolio, along with the other Landmark Funds, entered into an ongoing
agreement with a bank which allows the Landmark Funds collectively to borrow up
to $60 million for temporary or emergency purposes. Interest on the borrowings,
if any, is charged to the specific fund executing the borrowing at the base rate
of the bank. In addition, the $15 million committed portion of the line of
credit requires a quarterly payment of a commitment fee based on the average
daily unused portion of the line of credit. For the six months ended June 30,
1997, the commitment fee allocated to the Portfolio was $102. Since the line of
credit was established, there have been no borrowings.

- --------------------------------------------------------------------------------
SHAREHOLDER
SERVICING AGENTS
- --------------------------------------------------------------------------------

FOR NEW YORK RETAIL BANKING AND
BUSINESS AND PROFESSIONAL CUSTOMERS:
Citibank, N.A.
111 Wall Street, New York, NY 10043
(212) 820-2383 or (800) 846-5300

FOR CITIGOLD CUSTOMERS:
Citigold
P.O. Box 5130, New York, NY 10126-5130
Call Your Citigold Executive or, in NY or CT, (800) 285-1701, or for
all other states (800) 285-1707

FOR CITIBANK PRIVATE BANKING CLIENTS:
Citibank, N.A.
The Citibank Private Bank
153 East 53rd Street, New York, NY 10043
Call Your Citibank Private Banking Account Officer
Investment Specialist or (212) 559-5959

FOR CITIBANK GLOBAL ASSET MANAGEMENT CLIENTS:
Citibank, N.A.
Citibank Global Asset Management
153 East 53rd Street, New York, NY 10043
(212) 559-7117

FOR CITIBANK NORTH AMERICAN
INVESTOR SERVICES CLIENTS:
Citibank, N.A.
Master Trust Accounts
111 Wall Street, New York, NY 10043
Call Your Account Manager or (212) 657-9659

FOR CITICORP INVESTMENT SERVICES CUSTOMERS:
Citicorp Investment Services
One Court Square, Long Island City, NY 11120
Call Your Investment Consultant or (800) 846-5200
(212) 820-2380 in New York City

[Logo] LANDMARK
FUNDS

MONEY MARKET FUNDS:
Cash Reserves
Premium Liquid Reserves
Institutional Liquid Reserves

U.S. Treasury Reserves
Premium U.S. Treasury Reserves
Institutional U.S. Treasury Reserves

Tax Free Reserves
Institutional Tax Free Reserves

California Tax Free Reserves
Connecticut Tax Free Reserves
New York Tax Free Reserves

STOCK & BOND FUNDS:
U.S. Government Income Fund
Intermediate Income Fund
National Tax Free Income Fund
New York Tax Free Income Fund

Balanced Fund
Equity Fund
International Equity Fund
Small Cap Equity Fund
Emerging Asian Markets Equity Fund

<PAGE>

- --------------------------------------|-|---------------------------------------

INVESTMENT ADVISER
(OF EMERGING ASIAN MARKETS
EQUITY PORTFOLIO)
Citibank, N.A.
153 East 53rd Street, New York, NY 10043
ADMINISTRATOR AND DISTRIBUTOR
The Landmark Funds Broker-Dealer Services, Inc.
6 St. James Avenue, Boston, MA 02116
(617) 423-1679
TRANSFER AGENT
State Street Bank and Trust Company
225 Franklin Street, Boston, MA 02110
CUSTODIAN
Investors Bank and Trust Company
One Lincoln Plaza, Boston, MA 02111
AUDITORS
Price Waterhouse LLP
160 Federal Street, Boston, MA 02110
LEGAL COUNSEL
Bingham, Dana & Gould
150 Federal Street, Boston, MA 02110

- --------------------------------------|-|---------------------------------------

SHAREHOLDER SERVICING AGENTS
(See Inside Cover)

This report is prepared for the information of shareholders. It is authorized
for distribution to prospective investors only when preceded or accompanied by
an effective prospectus.

INTL/EAE/S/97 Printed on Recycled Paper [Recycle symbol]

[LOGO] LANDMARK(SM) FUNDS
Advised by Citibank, N.A.

LANDMARK
EMERGING
ASIAN MARKETS
EQUITY FUND

SEMI-ANNUAL
REPORT
June 30, 1997
<PAGE>

- --------------------------------------------------------------------------------
A LETTER TO OUR SHAREHOLDERS
- --------------------------------------------------------------------------------

Dear Shareholder:

The first half of 1997 was a difficult time for the emerging markets of
Asia. Double-digit declines in some of the region's stock markets were caused by
concerns regarding local economic conditions, real estate values and banking
policies. Despite these problems, we are pleased that the Landmark Emerging
Asian Markets Equity Fund protected shareholders from the brunt of the markets'
declines. We expect the Fund's defensive posture to help shareholders weather
this storm, and we are confident that the region's attractive fundamentals --
which remain in place -- will lead to a resumption of positive long-term market
trends within this rapidly growing part of the world.

The Landmark Funds' investment adviser, Citibank, N.A., managed the
Emerging Asian Markets Equity Fund to achieve its investment objective:
long-term capital growth. Through its investment in the Emerging Asian Markets
Equity Portfolio, the Fund invests primarily in equity securities of companies
in Asian countries with emerging markets and developing economies, including the
Philippines, Malaysia, Indonesia and Thailand. The Portfolio may also invest in
the People's Republic of China, India, Pakistan and Sri Lanka.

This report reviews the Portfolio's investment activities and performance
for the six-month period ended June 30, 1997, and provides a summary of
Citibank's perspective on and outlook for emerging Asian financial markets. On
behalf of the Board of Trustees of the Landmark Funds, I want to thank you for
your confidence and participation.

/s/ Philip Coolidge

Philip W. Coolidge
President
July 18, 1997

TABLE OF CONTENTS

1 A Letter to Our Shareholders
- -------------------------------------------------------------------------------
Market Environment
2 Fund Snapshot
Portfolio Manager
- -------------------------------------------------------------------------------
Quotes from the Portfolio Manager
3 The Portfolio Manager Responds
Strategy and Outlook
- -------------------------------------------------------------------------------
4 Emerging Asian Markets Equity
Portfolio by the Numbers
- -------------------------------------------------------------------------------
5 Fund Data
Performance Highlights

LANDMARK EMERGING ASIAN MARKETS EQUITY FUND
- -------------------------------------------------------------------------------
6 Statement of Assets and Liabilities
Statement of Operations
- -------------------------------------------------------------------------------
7 Statement of Changes in Net Assets
- -------------------------------------------------------------------------------
8 Financial Highlights
- -------------------------------------------------------------------------------
9 Notes to Financial Statements

EMERGING ASIAN MARKETS EQUITY PORTFOLIO
- -------------------------------------------------------------------------------
12 Portfolio of Investments
- -------------------------------------------------------------------------------
15 Statement of Assets and Liabilities
Statement of Operations
- -------------------------------------------------------------------------------
16 Statement of Changes in Net Assets
Financial Highlights
- -------------------------------------------------------------------------------
17 Notes to Financial Statements
<PAGE>

- --------------------------------------------------------------------------------
MARKET ENVIRONMENT
- --------------------------------------------------------------------------------

Many emerging Asian stock markets experienced a severe downturn during the
first six months of 1997. The Thai market was hardest hit, losing about 40% of
its value in response to a collapse in its real estate market and banking
system. With office vacancy rates approaching 30% and amid concerns that
economic growth may slow, Thailand's real estate investors appear to have
panicked, throwing the entire economy into turmoil. Plunging real estate values
hurt the banking system that financed commercial and residential development.
These problems were exacerbated by a restrictive monetary policy designed to
support the value of the Thai baht relative to other currencies.

Stock markets in Malaysia and the Philippines declined about 13% and 11%,
respectively, largely in sympathy with Thailand's predicament. In Malaysia,
imposition of stricter loan restrictions raised concerns of a slow-down of
corporate earnings growth, contributing to the decline. In the Philippines, the
stock markets declined sharply despite reporting the highest earnings growth
within the emerging Asian markets.

Indonesia represented the one bright spot in Southeast Asia. Robust
economic growth and uneventful national elections boosted investor confidence,
supporting a market advance of approximately 11%.

- --------------------------------------------------------------------------------
FUND SNAPSHOT
- --------------------------------------------------------------------------------

COMMENCEMENT OF OPERATIONS
August 23, 1995

NET ASSETS AS OF 6/30/97
$9.1 million

FUND OBJECTIVE
Long-term capital growth; dividend income, if any, is incidental to this
investment objective.

DIVIDENDS
Paid semi-annually, if any

CAPITAL GAINS
Distributed annually, if any

BENCHMARKS
o Lipper Pacific (Ex-Japan) Funds Average
o MSCI EMF Far East Index (excluding Korea)

INVESTMENT ADVISER,
EMERGING ASIAN MARKETS EQUITY PORTFOLIO
Citibank, N.A.

- --------------------------------------------------------------------------------
PORTFOLIO MANAGER
- --------------------------------------------------------------------------------

SHERN LIANG TAN
Vice President

Mr. Tan is a Portfolio Manager for the Citibank Private Bank's Singapore
investment unit. His responsibilities include managing both Asian equity mutual
funds and portfolios for high net worth investors. His comprehensive expertise
includes the emerging as well as developed markets of Asia.

Mr. Tan has six years' experience managing investments in Asian equities. He
specializes in industrialized and emerging opportunities in Hong Kong, Thailand,
the Philippines, and New Zealand. He also covers the equity markets in
Australia, Singapore and Indonesia.

Mr. Tan graduated with Distinction from the University of Michigan, Ann
Arbor, and is a Certified Financial Analyst.

- --------------------------------------------------------------------------------
QUOTES FROM THE PORTFOLIO MANAGER
- --------------------------------------------------------------------------------

"Our large cash position and avoidance of the Thai market helped the Portfolio
outperform its benchmark significantly."

"Our defensive strategy includes avoiding economically sensitive companies in
favor of companies expected to benefit directly from the growth of industry and
an emerging middle class."

"The recent setbacks brought emerging Asian market valuations back to their
pre-1993 levels, creating attractive opportunities for when the time is right."

- --------------------------------------------------------------------------------
THE PORTFOLIO MANAGER RESPONDS
- --------------------------------------------------------------------------------

The Portfolio's defensive positioning helped us protect shareholders from
the bulk of the markets' declines. We reduced our exposure to Thai companies
early in the year when real-estate-related problems began to develop. As of the
end of the period, only 4% of the Portfolio was invested in Thai companies. We
also reduced our exposure to Malaysia. These adjustments enabled us to raise the
cash component of the Portfolio to around 15%, a position that was key in our
attempt to safeguard our investors' assets.

In addition, we increased our exposure to companies in the Philippines and
Indonesia because of their attractive fundamentals and persistent growth. In our
view, the forces affecting Thailand are mostly limited to that nation's economy
and banking system and are not likely to cause similar problems in neighboring
markets. Nonetheless, because investor psychology often has more to do with
short-term stock price movements than economic fundamentals, we have adopted a
defensive stance even in these attractive markets. For example, we have avoided
economically sensitive investments such as property-related and banking stocks,
preferring instead to own companies that we expect to benefit most from
long-term trends such as the region's development as a significant global
business competitor. Accordingly, the Portfolio contains Philippine and
Indonesian stocks of growing companies primarily in the consumer, utility and
infrastructure-related industries.

- --------------------------------------------------------------------------------
STRATEGY AND OUTLOOK
- --------------------------------------------------------------------------------

We are very cautious regarding the prospects for Thailand's stock market
over the next six months. Despite the magnitude of the market's decline, we
believe that risks will continue to outweigh opportunities until Thailand can
resolve its problems. Once those issues are addressed, we expect Thai stocks to
represent attractive values. Until then, we intend to stay on the sidelines in
Thailand.

We are more optimistic about the rest of the region. Malaysia and the
Philippines should begin to rebound during the second half of the year, and we
expect Indonesia to add to its year-to-date gains. In our opinion, the
Philippine market was oversold during the first half of the year and should
rebound during the second half. Indonesia should respond favorably to strong
corporate earnings and the development of a local mutual fund industry which is
expected to provide greater liquidity for the markets.

<PAGE>

- --------------------------------------------------------------------------------
Emerging Asian Markets Equity Portfolio
- --------------------------------------------------------------------------------
BY THE NUMBERS
- --------------------------------------------------------------------------------

TOP TEN EQUITY HOLDINGS OF THE PORTFOLIO
(AS OF 6/30/97)

NAME NATION % OF NET ASSETS
Pt Telecomunikasion Indonesia 5.3%
Malayan Banking Berhad Malaysia 4.5%
Tenaga Nasional Berhad Malaysia 3.8%
Pt Astra International Indonesia 3.1%
Star Publications Malaysia Malaysia 3.0%
Pt Gudang Garam Indonesia 2.9%
Systems Telekom Malaysia Malaysia 2.3%
Philippine Long Distance Telephone Philippines 2.2%
ACP Industries Berhad Malaysia 2.0%
Sime Darby Berhad Malaysia 1.9%

- --------------------------------------------------------------------------------
INDUSTRIES AS A % OF THE PORTFOLIO

INDUSTRIES % OF COMMON STOCKS
---------- ------------------
Banking 18.4%
Telecommunications 11.1%
Automobile 10.0%
Property/Hotel 10.0%
Consumer 8.5%
Utilities 8.5%
Others 7.4%
Media 7.2%
Construction/Engineering 6.7%
Building Materials 3.9%
Transport 2.4%
Multi-Industry 1.9%
Energy 1.4%
Finance/Securities 1.0%
Timber 0.9%
Leisure & Tourism 0.6%
Plantations 0.1%

CHANGES IN PORTFOLIO
ASSET ALLOCATION
Portfolio of Investments
as of 6/30/97

Philippines 15%
Malaysia 54%
Thailand 5%
Indonesia 26%

...compared to 12/31/96

Philippines 14%
Malaysia 54%
Thailand 14%
Indonesia 18%

<PAGE>

<TABLE>
<CAPTION>
TOTAL RETURNS
------------------------------------
SINCE
SIX ONE 8/23/95
MONTHS** YEAR INCEPTION*
-------- ------- --------
<S> <C> <C> <C>
Landmark Emerging Asian Markets Equity Fund
without Sales Charge .................................. (7.40)% (14.64)% (3.20)%
Lipper Pacific (Ex-Japan) Funds Average ................ 6.02% 8.72% 9.24%+
MSCI EMF Far East Index (excluding Korea) .............. (12.65)% (16.47)% (4.89)%+
Landmark Emerging Asian Markets Equity Fund
with Maximum Sales Charge of 4.75% .................... (11.80)% (18.69)% (5.71)%

* Average Annual Total Return.
** Not Annualized
+ From 8/31/95
</TABLE>

- --------------------------------------------------------------------------------
PERFORMANCE HIGHLIGHTS
- --------------------------------------------------------------------------------

Landmark Landmark MSCI EMF Far
Emerging Asian Emerging Asian East Index
Markets Equity Markets Equity Lipper Pacific (excluding
Fund - Without Fund - With (Ex-Japan) Korea)
Sales Charge Sales Charge Funds Average (unmanaged)
------------ ------------ ------------- -----------
Aug-95 $ 9,870.00 $ 9,401.18 $10,000.00 $10,000.00
Sep-95 $ 9,600.00 $ 9,144.00 $10,049.85 $ 9,808.07
Oct-95 $ 9,380.00 $ 8,934.45 $ 9,868.18 $ 9,436.38
Nov-95 $ 9,200.00 $ 8,763.00 $ 9,646.83 $ 9,175.35
Dec-95 $10,026.34 $ 9,550.09 $10,010.73 $ 9,791.41
Jan-96 $10,948.77 $10,428.70 $10,836.06 $10,496.33
Feb-96 $10,838.48 $10,323.65 $10,885.76 $10,516.10
Mar-96 $11,109.19 $10,581.50 $10,801.91 $10,730.51
Apr-96 $11,590.45 $11,039.91 $11,084.26 $11,255.04
May-96 $11,409.98 $10,868.00 $11,060.45 $11,086.52
Jun-96 $11,028.98 $10,505.10 $10,862.99 $10,920.12
Jul-96 $10,016.32 $ 9,540.54 $10,183.19 $ 9,916.66
Aug-96 $10,337.16 $ 9,846.14 $10,454.03 $10,300.90
Sep-96 $10,547.71 $10,046.70 $10,596.11 $10,491.57
Oct-96 $ 9,926.08 $ 9,454.59 $10,457.16 $ 9,998.15
Nov-96 $10,407.34 $ 9,912.99 $11,015.52 $10,526.12
Dec-96 $10,166.71 $ 9,683.79 $11,116.88 $10,325.69
Jan-97 $10,607.87 $10,104.00 $11,258.68 $10,672.71
Feb-97 $10,758.27 $10,247.25 $11,359.49 $10,760.27
Mar-97 $10,206.82 $ 9,721.99 $10,812.18 $10,211.97
Apr-97 $ 9,204.18 $ 8,766.98 $10,687.17 $ 9,183.94
May-97 $ 9,484.92 $ 9,034.39 $11,398.82 $ 9,327.21
Jun-97 $ 9,414.74 $ 8,967.54 $11,758.30 $ 9,122.01

A $10,000 investment in the Fund made on inception date would have decreased to
$8,968 with sales charge (as of 6/30/97). The graph shows how this compares to
our benchmarks over the same period.

- --------------------------------------------------------------------------------
Landmark Emerging Asian Markets Equity Fund
- --------------------------------------------------------------------------------
STATEMENT OF ASSETS AND LIABILITIES June 30, 1997 (unaudited)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
ASSETS:
<S> <C>
Investment in Emerging Asian Markets Equity Portfolio, at value (Note 1A) ................... $ 9,070,781
Receivable for shares of beneficial interest sold ........................................... 570
Other assets ................................................................................ 222
- -----------
Total assets ............................................................................... 9,071,573
- -----------
LIABILITIES:
Payable to affiliates-Shareholder servicing agents' fee (Note 2B) ........................... 1,867
Accrued expenses and other liabilities ...................................................... 4,585
- -----------
Total liabilities .......................................................................... 6,452
- -----------
NET ASSETS for 965,006 shares of beneficial interest outstanding ............................ $ 9,065,121
======= ===========
NET ASSETS CONSIST OF:
Paid-in capital ............................................................................. $ 9,905,721
Unrealized appreciation of investments and foreign currency translations .................... 470,213
Undistributed net investment loss ........................................................... (40,085)
Accumulated net realized loss on investments ................................................ (1,270,728)
- -----------
Total ...................................................................................... $ 9,065,121
===========
NET ASSET VALUE AND REDEMPTION PRICE PER SHARE OF BENEFICIAL INTEREST ....................... $9.39
=====
COMPUTATION OF OFFERING PRICE:
Maximum Offering Price per share based on a 4.75% sales charge ($9.39/.9525) ................ $9.86
=====
</TABLE>

See notes to financial statements
<PAGE>

<TABLE>
<CAPTION>
INVESTMENT INCOME (NOTE 1B):
<S> <C> <C>
Dividend Income from Emerging Asian Markets Equity Portfolio .............. $ 36,585
Interest Income from Emerging Asian Markets Equity Portfolio .............. 20,436
Allocated Expenses from Emerging Asian Markets Equity Portfolio ........... (48,601) $ 8,420
--------

EXPENSES:
Administrative fees (Note 2A) ............................................. 14,593
Shareholder Servicing Agents' fees (Note 2B) .............................. 12,161
Distribution fees (Note 3) ................................................ 4,864
Expense fees (Note 6) ..................................................... 9,730
--------
Net expenses ............................................................. 41,348
---------
Net investment loss ...................................................... (32,928)
---------
NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS AND FOREIGN EXCHANGE
CURRENCY TRANSACTIONS FROM EMERGING ASIAN MARKETS EQUITY PORTFOLIO:
Net realized loss ......................................................... (282,156)
Net change in unrealized appreciation (depreciation) ...................... (383,702)
---------
Net realized and unrealized gain (loss) ................................... (665,858)
---------
NET DECREASE IN NET ASSETS RESULTING FROM OPERATIONS ...................... $(698,786)
=========
</TABLE>

See notes to financial statements
<PAGE>

TRANSACTIONS IN SHARES OF
BENEFICIAL INTEREST (NOTE 5):
Net proceeds from sale of shares ................. 133,827 8,041,081
Net asset value of shares issued to shareholders
from reinvestment of dividends .................. -- --
Cost of shares repurchased ....................... (954,738) (2,991,470)
---------- -----------
Net increase (decrease) in net assets resulting from
transactions in shares of beneficial interest ... (820,911) 5,049,611
---------- -----------
NET INCREASE (DECREASE) IN NET ASSETS ............ (1,519,697) 4,616,200

NET ASSETS:
Beginning of period .............................. 10,584,818 5,968,618
---------- -----------
End of period (undistributed net investment loss of
$40,085 and $7,157) ............................. $9,065,121 $10,584,818
========== ===========
</TABLE>

See notes to financial statements
<PAGE>
- --------------------------------------------------------------------------------
Landmark Emerging Asian Markets Equity Fund
- --------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
AUGUST 23, 1995
SIX MONTHS YEAR (COMMENCEMENT OF
ENDED ENDED OPERATIONS) TO
JUNE 30, 1997 DECEMBER 31, DECEMBER 31,
(UNAUDITED) 1996 1995
------------ ----------- --------------
<S> <C> <C> <C>
Net Asset Value, beginning of period ............. $10.14 $ 10.00 $ 10.00
------ ------- -------
Income From Operations:
Net investment income (loss) ..................... (0.030) 0.010(+) 0.026
Net realized and unrealized gain (loss) .......... (0.720) 0.130(+)(++) --
------ ------- -------
Total from investment operations .............. (0.750) 0.140 0.026
------ ------- -------
Less Distributions:
From net investment income ...................... -- -- (0.026)
------ ------- -------
Total from distributions ...................... -- -- (0.026)
------ ------- -------
Net Asset Value, end of period ................... $ 9.39 $ 10.14 $ 10.00
====== ======= =======

RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (000's omitted) ........ $9,065 $10,585 $ 5,969
Ratio of expenses to average net assets(A) ....... 1.85%* 1.01% 0%
Ratio of net investment income (loss) to
average net assets .............................. (0.68)%* 0.16% 1.50%*
Total return ..................................... (7.40)%** 1.40% 0.26%**

Note: If Agents of the Fund for the periods indicated had not voluntarily
waived a portion of their fees and had the expense fees agreement been in
effect the entire period, the net investment income (loss) per share and the
ratios would have been as follows:

Net investment income (loss) per share ........... $(0.030) $(0.024)(+) $(0.046)
Ratios:
Expenses to average net assets(A) ................ 1.85%* 1.85% 1.85%*
Net investment income (loss) to
average net assets .............................. (0.68)%* (0.68)% (0.35)%*
</TABLE>

*Annualized.
**Not annualized.
+The per share amounts were computed using a monthly average number of shares
outstanding during the period.
++The amount shown for a share outstanding does not correspond with the
aggregate net realized and unrealized gain (loss) on investments for the
period ended due to the timing of sales of Fund shares in relation to
fluctuating market values of the investments in the Fund.
(A)Includes the Fund's share of Emerging Asian Markets Equity Portfolio
allocated expenses for the periods indicated.

(1) SIGNIFICANT ACCOUNTING POLICIES
Landmark Emerging Asian Markets Equity Fund (the "Fund") is a separate
diversified series of Landmark International Funds (the "Trust"), a
Massachusetts business trust. The Trust is registered under the Investment
Company Act of 1940, as amended, as a diversified, open-end, management
investment company. The Fund invests all of its investable assets in Emerging
Asian Markets Equity Portfolio (the "Portfolio"), a management investment
company for which Citibank, N.A. ("Citibank") serves as Investment Adviser. The
Landmark Funds Broker-Dealer Services, Inc. ("LFBDS") acts as the Fund's
Administrator and Distributor. Citibank also serves as Sub-Administrator and
makes Fund shares available to customers as Shareholder Servicing Agent.

The Trust seeks to achieve the Fund's investment objective of long-term growth
of capital by investing all of its investable assets in the Portfolio, an
open-end, diversified management investment company having the same investment
objective and policies and substantially the same investment restrictions as the
Fund. The value of such investment reflects the Fund's proportionate interest
(approximately 81.7% at June 30, 1997) in the net assets of the Portfolio.

The financial statements of the Portfolio, including the portfolio of
investments, are contained elsewhere in this report and should be read in
conjunction with the Fund's financial statements.

The preparation of financial statements in accordance with U.S. generally
accepted accounting principles requires management to make estimates and
assumptions that affect the reported amounts and disclosures in the financial
statements. Actual results could differ from those estimates.

The following significant accounting policies consistently followed by the Fund
are as follows:

A. INVESTMENT VALUATIONS -- Valuation of securities by the Portfolio is
discussed in Note 1A of the Portfolio's Notes to Financial Statements which are
included elsewhere in this report.

C. FEDERAL TAXES -- The Fund's policy is to comply with the provisions of the
Internal Revenue Code available to regulated investment companies and to
distribute to shareholders all of its taxable income, including any net realized
gain on investment transactions. Accordingly, no provision for federal income or
excise tax is required. At December 31, 1996, the Fund, for federal income tax
purposes, had a capital loss carryover of $660,368 which will expire December
31, 2004. Such capital loss carryover will reduce the Fund's taxable income
arising from future net realized gain on investment transactions, if any, to the
extent permitted by the Internal Revenue Code, and thus will reduce the amount
of the distributions to shareholders which would otherwise be necessary to
relieve the Fund of any liability for federal income or excise tax.

E. DISTRIBUTIONS -- Distributions to shareholders are recorded on ex-dividend
date. The amount and character of income and net realized gains to be
distributed are determined in accordance with income tax rules and regulations,
which may differ from generally accepted accounting principles. These
differences are attributable to permanent book and tax accounting differences.
Reclassifications are made to the Fund's capital accounts to reflect income and
net realized gains available for distribution (or available capital loss
carryovers) under income tax rules and regulations. For the year ended December
31, 1996, the Fund reclassified $21,687 from undistributed net investment loss,
$30,198 to accumulated net realized loss of investments and $8,511 from
paid-in-capital.

(2) ADMINISTRATIVE SERVICES PLAN
The Fund has adopted an Administrative Services Plan (the "Administrative
Services Plan") which provides that the Fund may obtain the services of an
Administrator, and one or more Shareholder Servicing Agents and other Servicing
Agents, and may enter into agreements providing for the payment of fees for such
services. Under the Administrative Services Plan, the aggregate of the fees paid
to the Administrator by the Fund, the fees paid to the Shareholder Servicing
Agents by the Fund and the Basic Distribution Fee paid by the fund to the
Distributor under the Distribution Plan may not exceed 0.65% of the Fund's
average daily net assets on an annualized basis for the Fund's then-current
fiscal year.

A. ADMINISTRATIVE FEES -- Under the terms of an Administrative Services
Agreement, the administrative services fees paid to the Administrator, as
compensation for overall administrative services, including general office
facilities, may not exceed an annual rate of 0.30% of the Fund's average daily
net assets. The Administrative fees amounted to $14,593, for the six months
ended June 30, 1997. Citibank acts as Sub-Administrator and performs such duties
and receives such compensation from LFBDS as from time to time is agreed to by
LFBDS and Citibank. The Fund pays no compensation directly to any Trustee or any
officer who is affiliated with the Administrator, all of whom receive
remuneration for their services to the Fund from the Administrator or its
affiliates. Certain officers and a Trustee of the Fund are officers and
directors of the Administrator or its affiliates.

(3) DISTRIBUTION FEES
The Trust has adopted a Plan of Distribution pursuant to Rule 12b-1 under the
Investment Company Act of 1940, as amended, in which the Fund compensates the
Distributor at an annual rate not to exceed 0.10% of the Fund's average daily
net assets for distribution of the Fund's shares. The Distribution fees amounted
to $4,864, for the six months ended June 30, 1997. The Distributor may also
receive an additional fee from the Fund at an annual rate not to exceed 0.05% of
the Fund's average daily net assets in anticipation of, or as reimbursement for,
advertising expenses incurred by the Distributor in connection with the sale of
shares of the Fund. No payment of such additional fee has been made during the
period.

(4) INVESTMENT TRANSACTIONS
Increase and decrease in the Fund's investment in the Portfolio for the six
months ended June 30, 1997 aggregated $133,837 and $998,247, respectively.

<PAGE>

SIX MONTHS YEAR
ENDED ENDED
JUNE 30, 1997 DECEMBER 31,
(UNAUDITED) 1996
------------ ------------
Shares sold ...... 12,813 732,376
Shares issued to
shareholders
from reinvestment
of dividends .... -- --
Shares repurchased (91,412) (285,360)
----- -------
Net increase
(decrease) ...... (78,599) 447,016
======= =======

(6) EXPENSE FEES
LFBDS has entered into an expense agreement with the Fund. LFBDS had agreed to
pay all of the ordinary operating expenses (excluding interest, taxes, brokerage
commissions, litigation costs or other extraordinary costs or expenses) of the
Fund, other than fees paid under the Administrative Services Agreement,
Distribution Agreement and Shareholder Servicing Agreements and other than
amortization of expenses related to the organization of the Fund. The Agreement
may be terminated by either party upon not less than 30 days nor more than 60
days written notice

The Fund has agreed to pay to LFBDS an expense fee, commencing July 1, 1996, on
an annual basis, accrued daily and paid monthly; provided, however, that such
fee shall not exceed the amount such that immediately after any such payment the
aggregate ordinary operating expenses of the Fund, including expenses allocated
from the Portfolio less expenses waived by the Administrator and Distributor
would, on an annual basis exceed an agreed upon rate, currently 1.85% of average
daily net assets.

<PAGE>

ISSUER/INDUSTRY SHARES VALUE
- --------------------------------------------------------------------------------

- --------------------------------------------------------------------------------
COMMON STOCKS -- 74.0%
- --------------------------------------------------------------------------------

INDONESIA - 19.1%
Bank International Indonesia
Banking .............................. 153,000 $ 132,140
Bank International Indonesia-Warrants*
Banking .............................. 11,112 4,342
PT Astra International
Automobile ........................... 85,000 349,578
PT Bank Dagang Nasional Ind
Banking .............................. 252,000 178,779
PT Bank Dagang Nasional Ind-Warrants*
Banking .............................. 36,000 14,806
PT Bank Negara Indonesia
Banking .............................. 198,500 126,537
PT Darya Varia Laboratoria
Consumer ............................. 25,500 30,676
PT Daya Guna Samudera
Others ............................... 95,000 170,934
PT Gudang Garam
Consumer ............................. 76,000 318,816
PT HM Sampoerna
Consumer ............................. 13,000 49,589
PT Ramayana Lestari Santosa
Consumer ............................. 25,500 73,411
PT Semen Gresik
Building Materials ................... 36,500 81,812
PT Telecomunikasion
Telecommunications ................... 360,000 588,526
----------
2,119,946
----------
MALAYSIA - 40.0%
ACP Industries Berhad
Building Materials ................... 56,000 221,870
ACP Industries Berhad-Warrants*
Building Materials ................... 21,000 20,800
Arab-Malaysian Merchant Bank-Warrants*
Banking .............................. 3,000 4,041
Arab-Malaysian Merchant Bank*
Banking .............................. 30,000 10,757
Berjaya Group Berhad
Multi-Industry ....................... 60,000 73,693
Bright Packaging Industries Berhad
Miscellaneous ........................ 5,000 27,734
Commerce Asset Holdings Berhad
Banking .............................. 36,000 94,849
Commerce Asset Holdings Berhad-Rights*
Banking .............................. 11,700 952
DCB Holdings Berhad
Banking .............................. 21,000 63,391
DNP Holdings Berhad
Banking .............................. 30,000 21,141
Edaran Otomobil Nasional Berhad
Automobile ........................... 6,000 51,109
Gamuda Berhad
Construction/Engineering ............. 26,499 92,914
Gamuda Berhad-Warrants*
Construction/Engineering ............. 1,667 1,882
Hong Leong Bank-Warrants*
Property/Hotel ....................... 78,578 88,727
Jaya Tiasa
Timber ............................... 14,000 70,444
KFC Holdings Berhad
Consumer ............................. 35,360 133,090
KFC Holdings Berhad-Warrants*
Consumer ............................. 32,000 37,781
Konsortium Perkapalan Berhad
Transport ............................ 27,000 159,390
Kuala Lumpur Kepong Berhad
Plantations .......................... 4,000 9,905
Lingkaran Trans Kota Holdings*
Banking .............................. 8,000 16,640
Magnum Corp. Berhad
Leisure & Tourism .................... 32,000 48,177
Malayan Banking Berhad
Banking .............................. 47,000 495,563
Malaysia Mining Corp.
Construction/Engineering ............. 80,000 87,480
Malaysian International Shipping
Transport ............................ 13,000 33,736
Malaysian Resources Corp.
Property/Hotel ....................... 56,000 154,200
Multi-Purpose Holdings
Others ............................... 133,000 186,537
Oriental Holdings Berhad
Automobile ........................... 14,000 105,388
Perusahaan Otomobil Nasional
Automobile ........................... 24,000 112,203
Public Bank Berhad
Banking .............................. 18,000 28,098
Rashid Hussein Berhad
Finance/Securities ................... 13,000 82,409
Renong Berhad
Others ............................... 104,000 135,975
Renong Berhad-Warrants*
Others ............................... 2,000 1,054
Road Builder
Construction/Engineering ............. 20,000 94,295
Sime Darby Berhad
Property/Hotel ....................... 64,000 212,995
S P Setia Berhad
Property/Hotel ....................... 22,000 72,781
Star Publications Malaysia
Media ................................ 79,000 338,035
Systems Telekom Malaysia
Media ................................ 54,000 252,456
Tan Chang Motor Holdings Berhad
Automobile ........................... 81,000 152,758
Tenaga Nasional Berhad
Utilities ............................ 86,000 419,097
UMW Holdings Berhad
Automobile ........................... 9,000 42,433
UMW Holdings Berhad-Warrants*
Automobile ........................... 3,000 7,369
United Engineers Malaysia
Construction/Engineering ............. 26,040 187,769
----------
4,451,918
----------
PHILIPPINES - 11.1%
Ayala Land Inc. B
Property ............................. 189,375 174,111
CN Solid Group Inc.
Consumer ............................. 356,000 58,038
DMCI Holdings, Inc.*
Construction ......................... 263,000 86,749
Manila Electric
Utility .............................. 26,650 131,350
Metro Bank & Trust
Banking .............................. 8,357 177,431
Metro Pacific Corp.
Miscellaneous ........................ 400,000 86,442
Philippine Long Distance Telephone
Telecommunications ................... 7,700 249,602
Philippine National Bank
Banking .............................. 9,594 65,108
San Miquel Corp. B
Multi-Industry ....................... 31,900 84,056
SM Prime Holdings
Property ............................. 397,000 117,402
----------
1,230,289
----------
THAILAND - 3.8%
Advanced Infomation Services
Telecommunications ................... 8,500 77,148
Bangkok Bank Co. Ltd.
Banking .............................. 10,200 72,916
Co-Generation Public Co.*
Utilities ............................ 25,200 70,337
Electricity General
Utilities .......... ................. 30,000 76,506
Ptt Exploration & Products
Energy ............................... 7,800 117,783
Siam Commercial Bank
Banking .............................. 700 2,980
Telecom Asia Local*
Telecommunications ................... 1,200 1,506
Thai Farmers Bank-Warrants*
Banking .............................. 2,837 889
-----------
420,065
-----------
TOTAL COMMON STOCK
(Identified Cost $7,799,624) ........... $ 8,222,218
-----------

PRINCIPAL
ISSUER/INDUSTRY AMOUNT VALUE
- --------------------------------------------------------------------------------

- -------------------------------------------------------------------------------
FIXED INCOME - 0.5%
- -------------------------------------------------------------------------------
AMMB
5.00% due 1/13/02 ...................... 30,000 10,162
Multi-Purpose Holdings
3.00% due 1/13/02 ...................... 133,000 44,790
-----------
TOTAL FIXED INCOME
(Identified Cost $65,612) .............. 54,952
-----------
- -------------------------------------------------------------------------------
SHORT-TERM OBLIGATIONS - 21.7%
- -------------------------------------------------------------------------------
IBT Cash Sweep
4.95% due 7/01/97 ...................... 1,205,015
Salomon Brothers Repurchase Agreement
5.50% due 7/01/97, proceeds at
maturity $1,205,199 (collateralized
by $340,173 U.S. Treasury Note
8.75% due 8/15/20
$609,254 U.S. Treasury Note
9.125% due 5/15/18
$201,155 U.S. Treasury Note
9.00% due 11/15/18 and
$77,091 U.S. Treasury Bond
7.50%, due 11/15/16) ......... 1,205,015
-----------
2,410,030
-----------
TOTAL INVESTMENTS
(Identified Cost $10,275,266) 96.2% 10,687,200
OTHER ASSETS
LESS LIABILITIES ......... 3.8 420,378
----- -----------
NET ASSETS ................ 100.0% $11,107,578
===== ===========

* Non-income producing

See notes to financial statements
<PAGE>

- --------------------------------------------------------------------------------
Emerging Asian Markets Equity Portfolio
- --------------------------------------------------------------------------------
STATEMENT OF ASSETS AND LIABILITIES June 30, 1997 (unaudited)
- --------------------------------------------------------------------------------

<TABLE>
<CAPTION>
ASSETS:
<S> <C>
Investments at value (Note 1A) (Identified Cost, $10,275,266) ...................... $10,687,200
Foreign currency, at value (Cost, $190,717) ........................................ 190,318
Receivable for securities sold ..................................................... 271,629
Dividends and interest receivable .................................................. 28,979
-----------
Total assets ...................................................................... 11,178,126
-----------
LIABILITIES:
Payable for securities purchased ................................................... 61,696
Payable to affiliates--Investment advisory fees (Note 2) ............................ 6,352
Accrued expenses and other liabilities ............................................. 2,500
-----------
Total liabilities ................................................................. 70,548
-----------
NET ASSETS ......................................................................... $11,107,578
===========
REPRESENTED BY:
Paid-in capital for beneficial interests ........................................... $11,107,578
===========
</TABLE>
See notes to financial statements
<PAGE>
- --------------------------------------------------------------------------------
Emerging Asian Markets Equity Portfolio
- --------------------------------------------------------------------------------
STATEMENT OF OPERATIONS
For the Six Months Ended June 30, 1997 (unaudited)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
INVESTMENT INCOME:
<S> <C> <C>
Dividends (net of foreign withholding tax of $13,853) ................. $ 40,900
Interest .............................................................. 23,609
--------
Total investment income .............................................. $ 64,509

EXPENSES:
Investment advisory fees (Note 2) ..................................... 54,760
Administrative fees (Note 3) .......................................... 2,738
Expense fees (Note 6) ................................................. 2,500
--------
Total expenses ....................................................... 59,998
Less aggregate amount waived by Investment Adviser
and Administrator (Notes 2 and 3) .................................... (5,238)
--------

Net expenses .......................................................... 54,760
----------
Net investment income ................................................ 9,749
----------
NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS:
Net realized loss from investment transactions ........................ (317,660)
Net realized loss on foreign currency exchange transactions ........... (14,287)
--------
Net realized loss .................................................... (331,947)
----------
Unrealized appreciation (depreciation) of investments--
Beginning of period .................................................. 849,761
End of period ........................................................ 411,934 (437,827)
--------
Translation of other assets and liabilities denominated
in foreign currencies--net ............................................ 296
----------
Net change in unrealized appreciation (depreciation) ................. (437,531)
----------
Net realized and unrealized loss on investments ...................... (769,478)
----------
NET DECREASE IN NET ASSETS RESULTING FROM OPERATIONS .................. $ (759,729)
==========
</TABLE>
See notes to financial statements

<PAGE>

- --------------------------------------------------------------------------------
Emerging Asian Markets Equity Portfolio
- --------------------------------------------------------------------------------
STATEMENT OF CHANGES IN NET ASSETS
- --------------------------------------------------------------------------------

<TABLE>
<CAPTION>
SIX MONTHS
ENDED
JUNE 30, 1997 YEAR ENDED
(UNAUDITED) DECEMBER 31, 1996
-------------- ---------------
INCREASE (DECREASE) IN NET ASSETS FROM:
OPERATIONS:
<S> <C> <C>
Net investment income ........................................... $ 9,749 $ 65,403
Net realized loss on investments and foreign exchange transactions (331,947) (1,026,487)
Net change in unrealized appreciation (depreciation)
of investments and foreign currency exchange ................... (437,531) 562,925
----------- -----------
Net Decrease in net assets resulting from operations ........... (759,729) (398,159)
----------- -----------

CAPITAL TRANSACTIONS:
Proceeds from contributions ..................................... 1,524,325 8,854,217
Value of withdrawals ............................................ (1,049,778) (3,026,771)
----------- -----------
Net increase in net assets from capital transactions ........... 474,547 5,827,446
----------- -----------
NET INCREASE (DECREASE) IN NET ASSETS: .......................... (285,182) 5,429,287
NET ASSETS:
Beginning of period ............................................. 11,392,760 5,963,473
----------- -----------
End of period ................................................... $11,107,578 $11,392,760
=========== ===========
</TABLE>
See notes to financial statements
<PAGE>
- --------------------------------------------------------------------------------
Emerging Asian Markets Equity Portfolio
- --------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SIX MONTHS AUGUST 23, 1995
ENDED (COMMENCEMENT OF
JUNE 30, 1997 YEAR ENDED OPERATIONS) TO
(UNAUDITED) DECEMBER 31, 1996 DECEMBER 31, 1995
--------------- --------------- -----------------
RATIOS / SUPPLEMENTAL DATA:
<S> <C> <C> <C>
Net Assets, end of period (000's omitted) $11,108 $11,393 $5,963
Ratio of expenses to average net assets .. 1.00%* 0.56% 0%
Ratio of net investment income to
average net assets ...................... 0.18%* 0.60% 1.53%*
Portfolio turnover ....................... 26% 73% 0%
Average commission rate per share (A) .... $0.014 $0.019 N/A
Note: If Agents of the Portfolio had not voluntarily waived a portion of their fees for the periods indicated,
the ratios would have been as follows:
Ratios:
Expenses to average net assets ........... 1.10%* 1.06% 1.05%*
Net investment income to average net assets 0.08%* 0.10% 0.48%*
* Annualized
(A)The average commission rate paid is applicable for Funds that invest greater
than 10% of average net assets in equity transactions on which commissions
are charged. This disclosure is required for fiscal periods beginning on or
after September 1, 1995.
</TABLE>

See notes to financial statements
<PAGE>
- --------------------------------------------------------------------------------
Emerging Asian Markets Equity Portfolio
- --------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS (unaudited)
- --------------------------------------------------------------------------------

(1) SIGNIFICANT ACCOUNTING POLICIES
Emerging Asian Equity Portfolio (the "Portfolio"), a separate series of The
Premium Portfolios (the "Portfolio Trust"), is registered under the Investment
Company Act of 1940, as amended, as a diversified, open-end management
investment company which was organized as a trust under the laws of the State of
New York. The Declaration of Trust permits the Trustees to issue beneficial
interests in the Portfolio. The Investment Adviser of the Portfolio is Citibank
N.A. ("Citibank"). Signature Financial Group (Grand Cayman), Ltd. ("SFG") acts
as the Fund's Administrator.

The following significant accounting policies consistently followed by the
Portfolio are as follows:

A. INVESTMENT SECURITY VALUATIONS -- Equity securities in the portfolio are
valued at the last sale price on the exchange on which they are primarily
traded, or at the quoted bid price for securities in which there were no sales
during the day, or for unlisted securities not reported on the NASDAQ system.
Securities listed on a foreign exchange are valued at the last quoted sale price
available. Bonds and other fixed income securities (other than short-term
obligations maturing in sixty days or less) in the portfolio are valued on the
basis of valuations furnished by a pricing service, the use of which has been
approved by the Trustees. 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 exchanges or
over-the-counter prices, since such valuations and techniques are believed to
reflect more accurately the fair value of such securities. Short-term
obligations maturing in sixty days or less, are valued at amortized cost, which
constitutes fair value as determined by the Trustees. Portfolio securities for
which there are no such quotations or valuations are valued at fair value as
determined in good faith by or at the direction of the Trustees. 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 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 of fund valuation, such
securities will be valued at fair value in accordance with procedures
established by and under the general supervision of the Trustees.

B. FOREIGN CURRENCY TRANSLATION -- The accounting records of the Portfolio are
maintained in U.S. dollars. Foreign currency amounts are translated into U.S.
dollars at the current rate of exchange 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. The Fund does not isolate that portion of the
results of operations resulting from changes in foreign exchange rates on
investments from the fluctuations arising from changes in market prices of
securities held. Such fluctuations are included with the net realized and
unrealized gain or loss from investments. Translation of foreign currency
includes net exchange gains and losses, disposition of foreign currency and the
difference between the amount of investment income and foreign taxes withheld
recorded and the actual amount received or paid.

(2) INVESTMENT ADVISORY FEES
The investment advisory fees paid to Citibank, as compensation for overall
investment management services, amounted to $54,760, of which $2,500 was
voluntarily waived, for the six months ended June 30, 1997. The investment
advisory fees are computed at the annual rate of 1.00% of the Portfolio's
average daily net assets.

(3) ADMINISTRATIVE FEES
Under the terms of an Administrative Services Agreement, the administrative
services fees paid to the Administrator, as compensation for overall
administrative services including general office facilities, is computed at an
annual rate of 0.05% of the Portfolio's average daily net assets. The
administrative fees amounted to $2,738, all of which was voluntarily waived, for
the six months ended June 30, 1997. The Portfolio pays no compensation directly
to any Trustee or any officer who is affiliated with the Administrator, all of
whom receive remuneration for their services to the Portfolio from the
Administrator or its affiliates. Certain officers and a Trustee of the Portfolio
are officers and directors of the Administrator or its affiliates.

(4) PURCHASES AND SALES OF INVESTMENTS
For the six months ended June 30, 1997, purchases and sales of investment
securities, other than short-term investments, aggre-gated $2,549,682 and
$5,263,624, respectively.

(5) FEDERAL INCOME TAX BASIS OF INVESTMENTS
The cost and unrealized appreciation/(depreciation) in value of the investment
securities owned at June 30, 1997, as computed on a federal income tax basis,
are as follows:

Aggregate cost ..................... $10,275,266
===========
Gross unrealized appreciation ...... $ 1,005,300
Gross unrealized depreciation ...... (593,366)
-----------
Net unrealized appreciation ........ $ 411,934
===========

(6) EXPENSE FEES
SFG has entered into an expense agreement with the Portfolio. SFG has agreed to
pay all of the ordinary operating expenses (excluding interest, taxes, brokerage
commissions, litigation costs or other extraordinary costs or expenses) of the
Portfolio, other than fees paid under the Advisory Agreement, and Administrative
Services Agreement. The Agreement may be terminated by either party upon not
less than 30 days nor more than 60 days written notice.

The notional or contractual amounts of these instruments represent the
investment the Portfolio has in particular classes of financial instruments and
does not necessarily represent the amounts potentially subject to risk. The
measurement of the risks associated with these instruments is meaningful only
when related and offsetting transactions are considered.

(8) LINE OF CREDIT
The Portfolio, along with the other Landmark Funds, entered into an ongoing
agreement with a bank which allows the Landmark Funds collectively to borrow up
to $60 million for temporary or emergency purposes. Interest on the borrowings,
if any, is charged to the specific fund executing the borrowing at the base rate
of the bank. In addition, the $15 million committed portion of the line of
credit requires a quarterly payment of a commitment fee based on the average
daily unused portion of the line of credit for the six months ended June 30,
1997 the commitment fee allocated to the Portfolio was $24. Since the line of
credit was established, there have been no borrowings.
<PAGE>
- ----------------------------------------
SHAREHOLDER
SERVICING AGENTS
- ----------------------------------------

FOR NEW YORK RETAIL BANKING AND
BUSINESS AND PROFESSIONAL CUSTOMERS:
Citibank, N.A.
111 Wall Street, New York, NY 10043
(212) 820-2383 or (800) 846-5300

FOR CITIGOLD CUSTOMERS:
Citigold
P.O. Box 5130, New York, NY 10126-5130
Call Your Citigold Executive or, in NY or CT, (800) 285-1701,
or for all other states (800) 285-1707

FOR CITIBANK PRIVATE BANKING CLIENTS:
Citibank, N.A.
The Citibank Private Bank
153 East 53rd Street, New York, NY 10043
Call Your Citibank Private Banking Account Officer,
Investment Specialist or (212) 559-5959

FOR CITIBANK GLOBAL ASSET MANAGEMENT CLIENTS:
Citibank, N.A.
Citibank Global Asset Management
153 East 53rd Street, New York, NY 10043
(212) 559-7117

FOR CITIBANK NORTH AMERICAN INVESTOR SERVICES CLIENTS:
Citibank, N.A.
Master Trust Accounts
111 Wall Street, New York, NY 10043
Call Your Account Manager or (212) 657-9659

FOR CITICORP INVESTMENT SERVICES CUSTOMERS:
Citicorp Investment Services
One Court Square, Long Island City, NY 11120
Call Your Investment Consultant or (800) 846-5200
(212) 820-2380 in New York City

[logo] LANDMARK
FUNDS

MONEY MARKET FUNDS:
Cash Reserves
Premium Liquid Reserves
Institutional Liquid Reserves

U.S. Treasury Reserves
Premium U.S. Treasury Reserves
Institutional U.S. Treasury Reserves

Tax Free Reserves
Institutional Tax Free Reserves

California Tax Free Reserves
Connecticut Tax Free Reserves
New York Tax Free Reserves

STOCK & BOND FUNDS:
U.S. Government Income Fund
Intermediate Income Fund
National Tax Free Income Fund
New York Tax Free Income Fund

Balanced Fund
Equity Fund
International Equity Fund
Small Cap Equity Fund
Emerging Asian Markets Equity Fund