<PAGE> PAGE 1
000 B000000 10/31/98
000 C000000 887210
000 D000000 N
000 E000000 NF
000 F000000 Y
000 G000000 N
000 H000000 N
000 I000000 3.0.a
000 J000000 A
001 A000000 JULIUS BAER INVESTMENT FUNDS
001 B000000 811-6652
001 C000000 2122973940
002 A000000 330 MADISON AVENUE
002 B000000 NEW YORK
002 C000000 NY
002 D010000 10017
003 000000 N
004 000000 N
005 000000 N
006 000000 N
007 A000000 Y
007 B000000 2
007 C010100 1
007 C020100 JULIUS BAER GLOBAL INCOME FUND
007 C030100 N
007 C010200 2
007 C020200 JULIUS BAER INTERNATIONAL EQUITY FUND
007 C030200 N
007 C010300 3
007 C010400 4
007 C010500 5
007 C010600 6
007 C010700 7
007 C010800 8
007 C010900 9
007 C011000 10
011 A00AA01 FUNDS DISTRIBUTOR, INC
011 B00AA01 8-xxxxxxxx
011 C01AA01 BOSTON
011 C02AA01 MA
011 C03AA01 02109
012 A00AA01 UNIFIED ADVISORS, INC
012 B00AA01 85-xxxxxxx
012 C01AA01 INDIANAPOLIS
012 C02AA01 IN
012 C03AA01 46204
012 C04AA01 1873
013 A00AA01 KPMG PEAT MARWICK LLP
013 B01AA01 BOSTON
013 B02AA01 MA
013 B03AA01 02110
<PAGE> PAGE 2
014 A00AA01 JULIUS BAER SECURITIES INC.
014 B00AA01 8-11526
014 A00AA02 BANK JULIUS BAER
014 B00AA02 8-xxxxxxxx
014 A00AA03 WARBURG DILLON READ
014 B00AA03 8-xxxxxxxx
014 A00AA04 UBS AG
014 B00AA04 8-xxxxxxxx
015 A00AA01 INVESTORS BANK & TRUST CO.
015 B00AA01 C
015 C01AA01 BOSTON
015 C02AA01 MA
015 C03AA01 02116
015 E01AA01 X
018 00AA00 Y
019 A00AA00 N
019 B00AA00 0
020 A000001 MERRILL LYNCH
020 C000001 68
020 A000002 WARBURG DILLON READ
020 C000002 43
020 A000003 SALOMON BROTHERS
020 C000003 38
020 A000004 MORGAN STANLEY
020 C000004 37
020 A000005 JULIUS BAER SECURITIES
020 C000005 32
020 A000006 GOLDMAN SACHS
020 C000006 29
020 A000007 EGNATIA SECURITIES
020 C000007 21
020 A000008 TELESIS SECURITIES
020 C000008 11
020 A000009 ROBERT FLEMING
020 C000009 10
020 A000010 JARDINE FLEMMING
020 C000010 8
021 000000 313
022 A000001 INVESTORS BANK & TRUST
022 C000001 932499
022 D000001 1866
022 A000002 BROWN BROTHERS HARRIMAN & CO
022 C000002 199781
022 D000002 105292
022 A000003 GOLDMAN SACHS
022 C000003 9982
022 D000003 8413
022 A000004 MERRILL LYNCH
022 C000004 7912
022 D000004 6928
022 A000005 J.P. MORGAN
<PAGE> PAGE 3
022 C000005 7497
022 D000005 7293
022 A000006 SALOMON BROTHERS
022 C000006 6712
022 D000006 2976
022 A000007 DEUTSCHE BANK
022 C000007 5404
022 D000007 3425
022 A000008 MORGAN STANLEY
022 C000008 5223
022 D000008 3085
022 A000009 CITIBANK
022 C000009 3564
022 D000009 2880
022 A000010 WARBURG DILLON READ
022 C000010 1776
022 D000010 2121
023 C000000 1342356
023 D000000 281315
024 00AA00 N
026 A000000 N
026 B000000 N
026 C000000 N
026 D000000 N
026 E000000 N
026 F000000 N
026 G010000 N
026 G020000 N
026 H000000 N
027 000000 Y
029 00AA00 N
030 A00AA00 0
030 B00AA00 0.00
030 C00AA00 0.00
031 A00AA00 0
031 B00AA00 0
032 00AA00 0
033 00AA00 0
034 00AA00 N
035 00AA00 0
036 B00AA00 0
037 00AA00 N
038 00AA00 0
039 00AA00 N
040 00AA00 Y
041 00AA00 Y
054 A00AA00 Y
054 B00AA00 Y
054 C00AA00 Y
054 D00AA00 N
054 E00AA00 N
<PAGE> PAGE 4
054 F00AA00 N
054 G00AA00 Y
054 H00AA00 Y
054 I00AA00 N
054 J00AA00 Y
054 K00AA00 N
054 L00AA00 Y
054 M00AA00 Y
054 N00AA00 N
054 O00AA00 Y
077 A000000 Y
077 B000000 Y
077 C000000 Y
077 Q010000 Y
078 000000 N
080 C00AA00 900
081 B00AA00 0
082 B00AA00 0
086 A010000 0
086 A020000 0
086 B010000 0
086 B020000 0
086 C010000 0
086 C020000 0
086 D010000 0
086 D020000 0
086 E010000 0
086 E020000 0
086 F010000 0
086 F020000 0
008 A000101 BANK JULIUS BAER & CO.,LTD
008 B000101 A
008 C000101 801-xxxxxx
008 D010101 NEW YORK
008 D020101 NY
008 D030101 10017
008 A000102 DELETE
010 A000101 INVESTORS BANK & TRUST COMPANY
010 C010101 BOSTON
010 C020101 MA
010 C030101 02116
010 A000102 BANK JULIUS BAER & CO., LTD
010 C010102 NEW YORK
010 C020102 NY
010 C030102 10017
028 A010100 324
028 A020100 40
028 A030100 0
028 A040100 333
028 B010100 99
028 B020100 32
<PAGE> PAGE 5
028 B030100 0
028 B040100 25
028 C010100 2635
028 C020100 38
028 C030100 0
028 C040100 1726
028 D010100 193
028 D020100 34
028 D030100 0
028 D040100 41
028 E010100 1392
028 E020100 39
028 E030100 0
028 E040100 17
028 F010100 681
028 F020100 40
028 F030100 0
028 F040100 173
028 G010100 5324
028 G020100 223
028 G030100 0
028 G040100 2315
028 H000100 0
042 A000100 0
042 B000100 0
042 C000100 0
042 D000100 100
042 E000100 0
042 F000100 0
042 G000100 0
042 H000100 0
043 000100 30
044 000100 0
045 000100 Y
046 000100 N
047 000100 Y
048 000100 0.650
048 A010100 0
048 A020100 0.000
048 B010100 0
048 B020100 0.000
048 C010100 0
048 C020100 0.000
048 D010100 0
048 D020100 0.000
048 E010100 0
048 E020100 0.000
048 F010100 0
048 F020100 0.000
048 G010100 0
048 G020100 0.000
<PAGE> PAGE 6
048 H010100 0
048 H020100 0.000
048 I010100 0
048 I020100 0.000
048 J010100 0
048 J020100 0.000
048 K010100 0
048 K020100 0.000
049 000100 N
050 000100 N
051 000100 N
052 000100 N
053 A000100 Y
053 B000100 Y
055 A000100 Y
055 B000100 N
056 000100 Y
057 000100 N
058 A000100 N
059 000100 Y
060 A000100 N
060 B000100 N
061 000100 2500
062 A000100 Y
062 B000100 0.0
062 C000100 0.0
062 D000100 2.5
062 E000100 0.0
062 F000100 0.0
062 G000100 0.0
062 H000100 0.0
062 I000100 0.0
062 J000100 0.0
062 K000100 0.0
062 L000100 0.0
062 M000100 51.1
062 N000100 22.1
062 O000100 0.0
062 P000100 1.4
062 Q000100 22.9
062 R000100 0.0
063 A000100 0
063 B000100 6.9
064 A000100 N
064 B000100 N
066 A000100 N
067 000100 N
068 A000100 N
068 B000100 N
069 000100 N
070 A010100 Y
<PAGE> PAGE 7
070 A020100 Y
070 B010100 N
070 B020100 N
070 C010100 Y
070 C020100 N
070 D010100 N
070 D020100 N
070 E010100 Y
070 E020100 N
070 F010100 N
070 F020100 N
070 G010100 Y
070 G020100 N
070 H010100 N
070 H020100 N
070 I010100 N
070 I020100 N
070 J010100 Y
070 J020100 N
070 K010100 Y
070 K020100 N
070 L010100 Y
070 L020100 Y
070 M010100 Y
070 M020100 Y
070 N010100 Y
070 N020100 N
070 O010100 Y
070 O020100 N
070 P010100 Y
070 P020100 N
070 Q010100 N
070 Q020100 N
070 R010100 Y
070 R020100 N
071 A000100 33233
071 B000100 30984
071 C000100 11506
071 D000100 269
072 A000100 12
072 B000100 689
072 C000100 0
072 D000100 0
072 E000100 0
072 F000100 78
072 G000100 36
072 H000100 0
072 I000100 18
072 J000100 0
072 K000100 0
072 L000100 6
<PAGE> PAGE 8
072 M000100 13
072 N000100 7
072 O000100 0
072 P000100 0
072 Q000100 0
072 R000100 0
072 S000100 28
072 T000100 30
072 U000100 0
072 V000100 0
072 W000100 7
072 X000100 223
072 Y000100 9
072 Z000100 475
072AA000100 500
072BB000100 0
072CC010100 149
072CC020100 0
072DD010100 564
072DD020100 0
072EE000100 0
073 A010100 0.5500
073 A020100 0.0000
073 B000100 0.0000
073 C000100 0.0000
074 A000100 53
074 B000100 389
074 C000100 0
074 D000100 14479
074 E000100 0
074 F000100 0
074 G000100 0
074 H000100 0
074 I000100 0
074 J000100 104
074 K000100 0
074 L000100 280
074 M000100 3
074 N000100 15308
074 O000100 0
074 P000100 15
074 Q000100 0
074 R010100 0
074 R020100 0
074 R030100 0
074 R040100 39
074 S000100 0
074 T000100 15254
074 U010100 1248
074 U020100 0
074 V010100 12.22
<PAGE> PAGE 9
074 V020100 0.00
074 W000100 0.0000
074 X000100 19
074 Y000100 0
075 A000100 0
075 B000100 12100
076 000100 0.00
083 A000100 N
083 B000100 0
084 A000100 N
084 B000100 0
085 A000100 Y
085 B000100 N
008 A000201 BANK JULIUS BAER & CO., LTD
008 B000201 A
008 C000201 801-xxxxxx
008 D010201 NEW YORK
008 D020201 NY
008 D030201 10017
010 A000201 INVESTORS BANK & TRUST COMPANY
010 C010201 BOSTON
010 C020201 MA
010 C030201 02116
028 A010200 1465
028 A020200 0
028 A030200 0
028 A040200 328
028 B010200 5975
028 B020200 0
028 B030200 0
028 B040200 1154
028 C010200 2006
028 C020200 0
028 C030200 0
028 C040200 8566
028 D010200 1778
028 D020200 0
028 D030200 0
028 D040200 1522
028 E010200 2096
028 E020200 0
028 E030200 0
028 E040200 4158
028 F010200 938
028 F020200 0
028 F030200 0
028 F040200 1015
028 G010200 14258
028 G020200 0
028 G030200 0
028 G040200 16743
<PAGE> PAGE 10
028 H000200 0
042 A000200 0
042 B000200 0
042 C000200 0
042 D000200 100
042 E000200 0
042 F000200 0
042 G000200 0
042 H000200 0
043 000200 144
044 000200 0
045 000200 Y
046 000200 N
047 000200 Y
048 000200 1.000
048 A010200 0
048 A020200 0.000
048 B010200 0
048 B020200 0.000
048 C010200 0
048 C020200 0.000
048 D010200 0
048 D020200 0.000
048 E010200 0
048 E020200 0.000
048 F010200 0
048 F020200 0.000
048 G010200 0
048 G020200 0.000
048 H010200 0
048 H020200 0.000
048 I010200 0
048 I020200 0.000
048 J010200 0
048 J020200 0.000
048 K010200 0
048 K020200 0.000
049 000200 N
050 000200 N
051 000200 N
052 000200 N
053 A000200 Y
053 B000200 Y
055 A000200 Y
055 B000200 N
056 000200 Y
057 000200 N
058 A000200 N
059 000200 Y
060 A000200 Y
060 B000200 Y
<PAGE> PAGE 11
061 000200 2500
062 A000200 N
062 B000200 0.0
062 C000200 0.0
062 D000200 0.0
062 E000200 0.0
062 F000200 0.0
062 G000200 0.0
062 H000200 0.0
062 I000200 0.0
062 J000200 0.0
062 K000200 0.0
062 L000200 0.0
062 M000200 0.0
062 N000200 0.0
062 O000200 0.0
062 P000200 0.0
062 Q000200 0.0
062 R000200 0.0
063 A000200 0
063 B000200 0.0
066 A000200 Y
066 D000200 Y
067 000200 N
068 A000200 N
068 B000200 Y
069 000200 N
070 A010200 Y
070 A020200 Y
070 B010200 Y
070 B020200 N
070 C010200 Y
070 C020200 N
070 D010200 Y
070 D020200 N
070 E010200 Y
070 E020200 N
070 F010200 N
070 F020200 N
070 G010200 Y
070 G020200 N
070 H010200 N
070 H020200 N
070 I010200 N
070 I020200 N
070 J010200 Y
070 J020200 Y
070 K010200 Y
070 K020200 Y
070 L010200 Y
070 L020200 Y
<PAGE> PAGE 12
070 M010200 Y
070 M020200 Y
070 N010200 Y
070 N020200 N
070 O010200 Y
070 O020200 N
070 P010200 Y
070 P020200 N
070 Q010200 N
070 Q020200 N
070 R010200 Y
070 R020200 N
071 A000200 71989
071 B000200 75674
071 C000200 53682
071 D000200 134
072 A000200 12
072 B000200 158
072 C000200 824
072 D000200 0
072 E000200 0
072 F000200 577
072 G000200 235
072 H000200 0
072 I000200 21
072 J000200 0
072 K000200 0
072 L000200 37
072 M000200 13
072 N000200 19
072 O000200 0
072 P000200 0
072 Q000200 0
072 R000200 0
072 S000200 154
072 T000200 144
072 U000200 4
072 V000200 0
072 W000200 23
072 X000200 1227
072 Y000200 156
072 Z000200 -89
072AA000200 4953
072BB000200 0
072CC010200 2363
072CC020200 0
072DD010200 502
072DD020200 0
072EE000200 0
073 A010200 0.1500
073 A020200 0.0000
<PAGE> PAGE 13
073 B000200 0.0000
073 C000200 0.0000
074 A000200 2691
074 B000200 8226
074 C000200 0
074 D000200 20
074 E000200 0
074 F000200 45748
074 G000200 0
074 H000200 0
074 I000200 99
074 J000200 26
074 K000200 0
074 L000200 185
074 M000200 12
074 N000200 57007
074 O000200 0
074 P000200 147
074 Q000200 0
074 R010200 0
074 R020200 0
074 R030200 0
074 R040200 142
074 S000200 0
074 T000200 56718
074 U010200 3685
074 U020200 0
074 V010200 15.39
074 V020200 0.00
074 W000200 0.0000
074 X000200 35
074 Y000200 0
075 A000200 0
075 B000200 57987
076 000200 0.00
083 A000200 N
083 B000200 0
084 A000200 N
084 B000200 0
085 A000200 Y
085 B000200 N
SIGNATURE MICHAEL QUAIN
TITLE PRESIDENT
<TABLE> <S> <C>
<ARTICLE> 6
<LEGEND>
This schedule contains summary financial information
extracted from
form N-SAR for the period ended October 31,1998
and is qualified in its entirety by reference to
such financial statements.
</LEGEND>
<SERIES>
<NUMBER> 1
<NAME> Julius Baer Global Income Fund
<S> <C>
<PERIOD-TYPE> 12-MOS
<FISCAL-YEAR-END> OCT-31-1998
<PERIOD-END> OCT-31-1998
<INVESTMENTS-AT-COST> 14,481,126
<INVESTMENTS-AT-VALUE> 14,867,818
<RECEIVABLES> 384,197
<ASSETS-OTHER> 3,170
<OTHER-ITEMS-ASSETS> 52,956
<TOTAL-ASSETS> 15,308,141
<PAYABLE-FOR-SECURITIES> 0
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 53,787
<TOTAL-LIABILITIES> 53,787
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 15,485,622
<SHARES-COMMON-STOCK> 1,248,207
<SHARES-COMMON-PRIOR> 1,015,819
<ACCUMULATED-NII-CURRENT> 0
<OVERDISTRIBUTION-NII> (102,745)
<ACCUMULATED-NET-GAINS> (518,876)
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> 390,353
<NET-ASSETS> 15,254,354
<DIVIDEND-INCOME> 0
<INTEREST-INCOME> 688,867
<OTHER-INCOME> 0
<EXPENSES-NET> 213,793
<NET-INVESTMENT-INCOME> 475,074
<REALIZED-GAINS-CURRENT> 499,745
<APPREC-INCREASE-CURRENT> 149,604
<NET-CHANGE-FROM-OPS> 1,124,423
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> (564,298)
<DISTRIBUTIONS-OF-GAINS> 0
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 503,318
<NUMBER-OF-SHARES-REDEEMED> 309,148
<SHARES-REINVESTED> 38,218
<NET-CHANGE-IN-ASSETS> 3,364,999
<ACCUMULATED-NII-PRIOR> (26,275)
<ACCUMULATED-GAINS-PRIOR> (1,005,867)
<OVERDISTRIB-NII-PRIOR> 0
<OVERDIST-NET-GAINS-PRIOR> 0
<GROSS-ADVISORY-FEES> 78,432
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> 222,403
<AVERAGE-NET-ASSETS> 12,099,602
<PER-SHARE-NAV-BEGIN> 11.70
<PER-SHARE-NII> 0.48
<PER-SHARE-GAIN-APPREC> 0.59
<PER-SHARE-DIVIDEND> (0.55)
<PER-SHARE-DISTRIBUTIONS> 0.00
<RETURNS-OF-CAPITAL> 0
<PER-SHARE-NAV-END> 12.22
<EXPENSE-RATIO> 1.77
<AVG-DEBT-OUTSTANDING> 0
<AVG-DEBT-PER-SHARE> 0.00
</TABLE>
<TABLE> <S> <C>
<ARTICLE> 6
<LEGEND>
This schedule contains summary financial information
extracted from
form N-SAR for the period ended October 31,1998
and is qualified in its entirety by reference to
such financial statements.
</LEGEND>
<SERIES>
<NUMBER> 2
<NAME> Julius Baer International Equity Fund
<S> <C>
<PERIOD-TYPE> 12-MOS
<FISCAL-YEAR-END> OCT-31-1998
<PERIOD-END> OCT-31-1998
<INVESTMENTS-AT-COST> 47,117,231
<INVESTMENTS-AT-VALUE> 54,093,175
<RECEIVABLES> 117,576
<ASSETS-OTHER> 105,412
<OTHER-ITEMS-ASSETS> 2,690,728
<TOTAL-ASSETS> 57,006,891
<PAYABLE-FOR-SECURITIES> 0
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 289,155
<TOTAL-LIABILITIES> 289,155
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 49,015,723
<SHARES-COMMON-STOCK> 3,685,359
<SHARES-COMMON-PRIOR> 3,302,528
<ACCUMULATED-NII-CURRENT> 0
<OVERDISTRIBUTION-NII> (640,399)
<ACCUMULATED-NET-GAINS> 1,289,815
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> 7,052,597
<NET-ASSETS> 56,717,736
<DIVIDEND-INCOME> 823,927
<INTEREST-INCOME> 158,629
<OTHER-INCOME> 0
<EXPENSES-NET> 1,071,167
<NET-INVESTMENT-INCOME> (88,611)
<REALIZED-GAINS-CURRENT> 4,953,520
<APPREC-INCREASE-CURRENT> 2,362,835
<NET-CHANGE-FROM-OPS> 7,227,744
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> (501,882)
<DISTRIBUTIONS-OF-GAINS> 0
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 1,863,767
<NUMBER-OF-SHARES-REDEEMED> 1,517,046
<SHARES-REINVESTED> 36,110
<NET-CHANGE-IN-ASSETS> 12,415,999
<ACCUMULATED-NII-PRIOR> 533,978
<ACCUMULATED-GAINS-PRIOR> (4,247,589)
<OVERDISTRIB-NII-PRIOR> 0
<OVERDIST-NET-GAINS-PRIOR> 0
<GROSS-ADVISORY-FEES> 576,830
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> 1,227,105
<AVERAGE-NET-ASSETS> 57,986,654
<PER-SHARE-NAV-BEGIN> 13.41
<PER-SHARE-NII> (0.03)
<PER-SHARE-GAIN-APPREC> 2.16
<PER-SHARE-DIVIDEND> (0.15)
<PER-SHARE-DISTRIBUTIONS> 0.00
<RETURNS-OF-CAPITAL> 0
<PER-SHARE-NAV-END> 15.39
<EXPENSE-RATIO> 1.85
<AVG-DEBT-OUTSTANDING> 0
<AVG-DEBT-PER-SHARE> 0.00
</TABLE>
ADVISORY AGREEMENT
Julius Baer Investment Funds (the "Trust"), a business trust
organized under the law of The Commonwealth of Massachusetts, entered into an
investment advisory agreement with Bank Julius Baer & Co., Ltd., New York Branch
(the "Adviser"), a corporation organized under the laws of the state of
Delaware, as of July 1, 1998. The Trust herewith confirms its agreement with the
Adviser to amend and such agreement in its entirety regarding investment
advisory services to be provided by the Adviser in connection with the Trust's
Julius Baer Global Income Fund (the "Fund") as follows:
1. Investment Description; Appointment
The Trust desires to employ the Fund's capital by investing and
reinvesting in investments of the kind and in accordance with the limitations
specified in the Trust's Master Trust Agreement, as the same may from time to
time be amended, and in its Registration Statement as from time to time in
effect, and in such manner and to such extent as may from time to time be
approved by the Board of Trustees of the Trust. Copies of the Trust's
Registration Statement and Master Trust Agreement have been or will be submitted
to the Adviser. The Trust agrees to provide copies of all amendments to the
Trust's Registration Statement and Master Trust Agreement to the Adviser on an
on-going basis. The Trust desires to employ and hereby appoints the Adviser to
act as investment adviser to the Fund. The Adviser accepts the appointment and
agrees to furnish the services described herein for the compensation set forth
below.
2. Services as Investment Adviser
Subject to the supervision and direction of the Board of Trustees of
the Trust, the Adviser will act in accordance with the Trust's Master Trust
Agreement, the Investment Company Act of 1940 and the Investment Advisors Act of
1940, as the same from time to time be amended, manage the Fund's assets in
accordance with its investment objective and policies as stated in the Trust's
Registration Statement as from time to time in effect, make investment decisions
and exercise voting rights in respect of portfolio securities for the Fund and
place purchase and sale orders on behalf of the Fund. In providing these
services, the Adviser will provide investment research and supervision of the
Fund's investments and conduct a continual program of investment, evaluation
and, if appropriate, sale and reinvestment of the Fund's assets. In addition,
the Adviser will furnish the Fund with whatever statistical information the Fund
may reasonably request with respect to the securities that the Fund may hold or
contemplate purchasing.
In addition, Subject to the supervision and direction of the Board of
Trustees of the Trust, the Adviser undertakes to perform the following
administrative and shareholder services to the extent that no other party is
obligated to perform them on behalf of the Fund: (1) furnishing certain internal
executive and administrative services; responding to shareholder inquiries; and
providing stationery and office supplies in connection with the foregoing; (2)
providing the Fund with office space (which may be the Adviser's own offices);
(3) furnishing certain corporate secretarial services, including assisting in
the preparation of materials for meetings of the Board of Trustees; (4)
coordinating and preparation of proxy statements and annual and semi-annual
reports to the Fund's shareholders; (5) assisting in the preparation of the
Fund's tax returns; (6) assisting in monitoring and developing compliance
procedures for the Fund which will include, among other matters, procedures for
monitoring compliance with the Fund's investment objective, policies,
restrictions, tax matters and applicable laws and regulations; (7) acting as
liaison between the Fund and the Fund's independent public accountants, counsel,
custodian or custodians, administrator and transfer and dividend-paying agent
and registrar, and taking all reasonable action in the performance of its
obligations under this Agreement to assure that all necessary information is
made available to each of them; and (8) furnishing to the Board of Trustees
quarterly written reports which set out the amounts expended under the
Distribution and Shareholder Services Plans and the purposes for which those
expenditures were made.
In performing all services under this Agreement, the Adviser shall act
in conformity with applicable law, the Trust's Master Trust Agreement and
By-Laws, and all amendments thereto, and the Trust's Registration Statement, as
amended from time to time.
3. Brokerage
In executing transactions for the Fund and selecting brokers
or dealers, the Adviser will use its best efforts to seek the best overall terms
available. In assessing the best overall terms available for any Fund
transaction, the Adviser will consider all factors it deems relevant including,
but not limited to, breadth of the market in the security, the price of the
security, the financial condition and execution capability of the broker or
dealer and the reasonableness of any commission for the specific transaction on
a continuing basis. In selecting brokers or dealers to execute a particular
transaction and in evaluating the best overall terms available, the Adviser may
consider the brokerage and research services (as those terms are defined in
Section 28(e) of the Securities Exchange Act of 1934) provided to the Trust
and/or other accounts over which the Adviser or an affiliate exercises
investment discretion.
4. Information Provided to the Trust
The Adviser will use its best efforts to keep the Trust informed of
developments materially affecting the Fund, and will, on its own initiative,
furnish the Trust from time to time whatever information the Adviser believes is
appropriate for this purpose.
<PAGE>
5. Standard of Care
The Adviser shall exercise its best judgment in rendering the services
described in paragraphs 2, 3 and 4 above. The Adviser shall not be liable for
any error of judgment or mistake of law or for any loss suffered by the Fund in
connection with the matters to which this Agreement relates, provided that
nothing herein shall be deemed to protect or purport to protect the Adviser
against any liability to the Fund or its shareholders to which the Adviser would
otherwise be subject by reason of willful misfeasance, bad faith or gross
negligence on its part in the performance of its duties from reckless disregard
by it of its obligations and duties under this Agreement ("disabling conduct").
The Fund will indemnify the Adviser against, and hold it harmless from, any and
all losses, claims, damages, liabilities or expenses (including reasonable
counsel fees and expenses) resulting from any claim, demand, action or suit not
resulting from disabling conduct by the Adviser. Indemnification shall be made
only following: (i) a final decision on the merits by a court or other body
before whom the proceeding was brought that the person to be indemnified was not
liable by reason of disabling conduct or (ii) in the absence of such a decision,
a reasonable determination, based upon a review of the facts, that the person to
be indemnified was not liable by reason of disabling conduct by (a) the vote of
a majority of a quorum of non-party trustees who are not "interested persons" of
the Trust or (b) an independent legal counsel in a written opinion.
6. Compensation
In consideration of the services rendered pursuant to this Agreement,
the Fund will pay the Adviser after the end of each calendar quarter a fee for
the previous quarter calculated at an annual rate of .65 of 1.00% of the Fund's
average daily net assets.
Upon any termination of this Agreement before the end of a quarter, the
fee for such part of that quarter shall be prorated according to the proportion
that such period bears to the full quarterly period and shall be payable upon
the date of termination of this Agreement. For the purpose of determining fees
payable to the Adviser, the value of the Fund's net assets shall be computed at
the times and in the manner specified in the Trust's Registration Statement as
from time to time in effect.
7. Expenses
The Adviser will bear all expenses in connection with the performance
of its services under this Agreement, including compensation of and office space
for its officers and employees connected with investment and economic research,
trading and investment management and administration of the Fund, as well as the
fees of all Trustees of the Trust who are affiliated with the Adviser or any of
its affiliates. The Fund will bear certain other expenses to be incurred in its
operation, including: organizational expenses; taxes, interest, brokerage costs
and commissions; fees of Trustees of the Trust who are not officers, directors,
or employees of the Adviser, the Fund's distributor or administrator or any of
their affiliates; Securities and Exchange Commission fees; state Blue Sky
qualification fees; charges of the custodian, any subcustodians, and transfer
and dividend-paying agents; insurance premiums; outside auditing, pricing and
legal expenses; costs of maintenance of the Trust's existence; costs
attributable to investor services, including without limitation, telephone and
personnel expenses; costs of printing stock certificates; costs of preparing and
printing prospectuses and statements of additional information for regulatory
purposes and for distribution to existing shareholders; costs of shareholders'
reports and meeting of the shareholders of the Fund and of the officers or Board
of Trustees of the Trust, membership fees in trade associations; litigation and
other extraordinary or non-recurring expenses. In addition, the Fund will pay
distribution fees pursuant to a Distribution Plan adopted under Rule 12b-1 of
the Investment Company Act of 1940, as amended, and pursuant to a Shareholder
Services Plan.
8. Reimbursement to the Fund
If in any fiscal year the aggregate expenses of the Fund (including
fees pursuant to this Agreement and the Fund's sub-advisory agreement, but
excluding distribution fees, interest, taxes, brokerage and, if permitted by
state securities commissions, extraordinary expenses) exceed the expense
limitation of any state having jurisdiction over the Fund, the Adviser will
reimburse the Fund for such excess expenses in the same proportion as its fees
under this Agreement bear to the combined fees for investment advice and
sub-investment advice. The Adviser's expense reimbursement obligation will be
limited to the amount of its fees received pursuant to this Agreement. Such
expense reimbursement, if any, will be estimated, reconciled and paid on a
monthly basis.
9. Services to Other Companies or Accounts
The Trust understands that the Adviser now acts, will continue to act,
or may in the future act, as investment adviser to fiduciary and other managed
accounts or as investment adviser to one or more other investment companies, and
the Trust has no objection to the Adviser so acting, provided that whenever the
Fund and one or more other accounts or investment companies advised by the
Adviser have available funds for investment, investments suitable and
appropriate for each will be allocated in accordance with procedures believed to
be equitable to each entity. Similarly, opportunities to sell securities will be
allocated in an equitable manner. The Trust recognizes that in some cases this
procedure may adversely affect the size of the position that may be acquired or
disposed of for the Fund. In addition, the Trust understands that the persons
employed by the Adviser to assist in the performance of the Adviser's duties
hereunder will not devote their full time to such service and nothing contained
herein shall be deemed to limit or restrict the right of the Adviser or any
affiliate of the Adviser to engage in and devote time and attention to other
businesses or to render services of whatever kind of nature.
<PAGE>
10. Term of Agreement
This Agreement shall become effective as of the date first written
above and shall continue for an initial two-year term and shall continue
thereafter so long as such continuance is specifically approved at least
annually by (i) the Board of Trustees of the Trust or (ii) a vote of a
"majority" (as defined in the Investment Company Act of 1940, as amended) of the
Fund's outstanding voting securities, provided that in either event the
continuance is also approved by a majority of the Board of Trustees who are not
"interested persons" (as defined in said Act) of any party to this Agreement, by
vote cast in person at a meeting called for the purpose of voting on such
approval. This Agreement is terminable, without penalty, on 60 days' written
notice, by the Board of Trustees of the Trust or by vote of holders of a
majority of the Fund's shares, or upon 60 days' written notice, by the Adviser.
This Agreement will also terminate automatically in the event of its assignment
(as defined in said Act).
11. Representation by the Trust
The Trust represents that copy of its Master Trust Agreement, dated
April 30, 1992 together with all amendments thereto, is on file in the office of
the Secretary of The Commonwealth of Massachusetts.
12. Limitation of Liability
It is expressly agreed that the obligations of the Trust hereunder
shall not be binding upon any of the Trustees, shareholders, nominees, officers,
agents or employees of the Trust, personally, but bind only the trust property
of the Fund, as provided in the Master Trust Agreement of the Trust. The
execution and delivery of this Agreement have been authorized by the Trustees
and the sole shareholder of Fund shares and signed by an authorized officer of
the Trust, acting as such, and neither such authorization by such Trustees and
shareholder nor such execution and delivery by such officer shall be deemed to
have been made by any of them individually or to impose any liability on any of
them personally, but shall bind only the trust property of the Fund as provided
in its Master Trust Agreement. The obligations of this Agreement shall be
binding only upon the assets and property of the Fund and not upon the assets
and property of any other sub-trust of the Trust.
13. Miscellaneous
If both the Adviser and the Sub-Adviser and Servicing Agent cease to
act as investment advisers to the Fund, the Trust agrees that, at the request of
either of them, the Trust's license to use "BJB" or any variation thereof
indicating a connection to either of those entities will terminate and that the
Trust will take all necessary action to change the names of the Trust and the
Fund to names that do not include "BJB" or any such variation.
14. Entire Agreement
This Agreement constitutes the entire agreement between the parties
hereto.
<PAGE>
15. Governing Law
This Agreement shall be governed by and construed and enforced in
accordance with the laws of the state of New York without giving effect to the
conflicts of laws principles thereof.
* * * * *
If the foregoing accurately sets forth our agreement, kindly indicate
your acceptance hereof by signing and returning the enclosed copy hereof.
Very truly yours,
JULIUS BAER INVESTMENT FUNDS
By:_____________________
__________
Name:
Title:
Accepted:
BANK JULIUS BAER & CO., LTD., NEW YORK BRANCH
By:_________________________________
Name:
Title:
L:\MFADMIN\BJB\SECFIL\NSAR\9810DATA\98VOTE.DOC
77c. Matters submitted to a vote of security holders.
A special meeting of the Fund's shareholders was held on June 29, 1998 at which
shareholders approved a single proposal. The voting results were as follows:
Proposal 1 To approve a new Advisory Agreement between the Trust and
Bank Julius Baer & Co., Ltd.
New York Branch:
<TABLE>
<S> <C> <C> <C> <C>
Percent of Shares
Shares For Shares Against Shares Abstaining Voted
715,603 0 0 73.10%
</TABLE>
Page 1
The Board of Trustees
Julius Baer Investment Funds:
In planning and performing our audit of the financial statements of Julius Baer
Global Income Fund and Julius Baer International Equity Fund, portfolios of
Julius Baer Investment Funds, for the year ended October 31, 1998, we considered
their internal control, including control activities for safeguarding
securities, in order to determine our auditing procedures for the purpose of
expressing our opinion on the financial statements and to comply with the
requirements of Form N-SAR, not to provide assurance on internal control.
The management of Julius Baer Global Income Fund and Julius Baer International
Equity Fund is responsible for establishing and maintaining internal control. In
fulfilling this responsibility, estimates and judgments by management are
required to assess the expected benefits and related costs of controls.
Generally, controls that are relevant to an audit pertain to the entity's
objective of preparing financial statements for external purposes that are
fairly presented in conformity with generally accepted accounting principles.
Those controls include the safeguarding of assets against unauthorized
acquisitions, use or disposition.
Because of inherent limitations in internal control, errors or irregularities
may occur and not be detected. Also, projection of any evaluation of internal
control to future periods is subject to the risks that it may become inadequate
because of changes in conditions or that the effectiveness of the design and
operation may deteriorate.
Our consideration of internal control would not necessarily disclose all matters
in internal control that might be material weaknesses under standards
established by the American Institute of Certified Public Accountants. A
material weakness is a condition in which the design or operation of one or more
of the internal control components does not reduce to a relatively low level the
risk that errors or irregularities in amounts that would be material in relation
to the financial statements being audited may occur and not be detected within a
timely period by employees in the normal course of performing their assigned
functions. However, we noted no matters involving internal control and its
operation, including controls for safeguarding securities, that we consider to
be material weaknesses as defined above as of October 31, 1998.
This report is intended solely for the information and use of management, the
Board of Trustees of the Julius Baer Investment Funds and the Securities and
Exchange Commission.
KPMG Peat Marwick LLP
Boston, Massachusetts
December 11, 1998