<PAGE>
JULIUS BAER INVESTMENT FUNDS
JULIUS BAER INTERNATIONAL EQUITY FUND
AND JULIUS BAER GLOBAL INCOME FUND
SEMI-ANNUAL REPORT
APRIL 30, 1999
- --------------------------------------------------------------------------------
Dear Fellow Shareholder:
I am pleased to report on the activity and performance of the Julius Baer
Investment Funds for the six month period ended April 30, 1999. The Julius Baer
International Equity Fund ("Equity Fund") continued to provide shareholders with
excellent results, strongly outperforming its benchmark index and the average of
competitor's funds during the reporting period. This period was a difficult one,
however, for global bond markets and the Julius Baer Global Income Fund ("Income
Fund") could not avoid the problems of those markets. The Income Fund slightly
underperformed its benchmark, suffering a decline of less than 1%. We believe
the Income Fund has exhibited suitable defensive protection of capital during a
period in which the five year U.S. Treasury yield rose from 4.38% to 5.21% and
the U.S. dollar rose from 1.65 to 1.85 versus the German deutschemark. Rising
yields and dollar values in the U.S. are the toughest environment for a global
income fund.
JULIUS BAER INTERNATIONAL EQUITY FUND
The Equity Fund strongly outperformed both the MSCI EAFE Index (the
"benchmark") and our average competitor over the 6-month,12 month, and 3-year
periods ending April 30, 1999. The Equity Fund returned +23.65% for the past 6
months, +9.87% over the past 12 months, and +73.70% over the past 3 years versus
benchmark returns of +15.28%, +9.50%, and +29.05% over comparable periods.
Returns for the Lipper International Equity Fund Index (the "competition"), a
reasonable proxy for our competitors, were +11.42%, 0.00%, and +32.82% over
comparable periods, respectively:
<TABLE>
<CAPTION>
TOTAL RETURN
------------------------------------------------------------
6-MONTH 1-YEAR 3-YEAR
10/31/98-04/30/99 04/30/98-04/30/99 04/30/96-04/30/99
------------------ ------------------ ------------------
<S> <C> <C> <C>
Julius Baer Intl. Equity
Fund........................ 23.65% 9.87% 73.70%
MSCI EAFE w net dividend
reinvested.................. 15.28% 9.50% 29.05%
LIPPER Intl. Equity Fund
Index....................... 11.42% 0.00% 32.82%
Julius Baer Intl. Equity Fund
vs. EAFE.................... +8.37% +0.37% +44.65%
Julius Baer Intl. Equity Fund
vs. LIPPER.................. +12.23% +9.87% +40.88%
</TABLE>
The Equity Fund's outperformance relative to both the benchmark and the
competition can be attributed to its active management and investment philosophy
coming after the global market turbulence in the summer of 1998. In response to
the turmoil, ignited by the Russian government's default on its debt obligations
and the subsequent collapse of some major hedge funds, we mitigated significant
losses by selling several portfolio positions and increased cash holdings.
Following several interest rate cuts in the U.S. by the Federal Reserve, the
cash holdings were quickly re-deployed in the portfolio. We reduced our heavy
exposure in Europe and gradually increased exposure to emerging markets and
Japan. However, the Equity Fund remains underweight both emerging markets and
Japan versus the benchmark.
In Japan, we started to see credible corporate restructuring efforts as
well as the injection of government funds into several troubled Japanese banks.
In emerging markets, we moderately increased exposure as these markets are
now benefiting from low local interest rates, strengthening currencies, and
political support from G7 governments. However, we remain concerned about the
emerging markets excessive U.S. dollar borrowing and an inadequate focus on
shareholder value creation.
Last year ended with "disengagement" the now famous description by Federal
Reserve Chairman Alan Greenspan of worldwide financial market conditions in
1998. Due to the great uncertainty and overall disruption of worldwide financial
markets in 1998, not only were
<PAGE>
emerging markets shunned by investors, industries and companies in the developed
markets with meaningful exposure to that area of the world were also affected.
However, 1999, to this point, has been the year of "re-engagement" in worldwide
financial markets. The regions, the countries and the industries that were
shunned by investors in 1998 are outperforming in 1999, with emerging markets
and cyclical stocks especially attractive in the marketplace.
In hindsight there are some good reasons for the current "contrarian"
attitude in the marketplace: 1) In emerging markets, local currencies have
strengthened and interest rates have fallen. 2) Many basic commodities; such as
oil, steel, and paper; are experiencing low inventory levels and higher prices.
In addition, consolidation in these cyclical industries is now accelerating.
This higher degree of consolidation should lead to more efficient management of
capacity and less price competition in the future. 3) A nominal flow of capital
can generate a rally in the cyclical and emerging market stocks so
under-invested and their market capitalization so decimated by the events which
took place in 1998. 4) Hedge funds have initiated the rally. That means many
traditional managers are hurting and lagging their benchmarks.
There are three major questions we now encounter for the Equity Fund:
1) Should we increase portfolio weighting in Japan? 2) Should we increase
portfolio weighting in emerging markets? 3) Should we rotate away from our
defensive and growth bias to increase our portfolio exposure in cyclical stocks?
In Japan, we are satisfied with our current weighting of 17%, and we see no
additions in the short term. In emerging markets, we are feeling more positive
about this area in general, consequently, we have added some security positions
and are looking to add more. In cyclical stocks, we have increased our weighting
mainly by reducing some of our growth stocks and adding a few cyclical stocks.
However, we remain significantly underweight cyclicals relative to the
benchmark. We believe the big question for cyclical stocks going forward is the
possible effect on U.S. interest rates when higher consumer prices begin to
filter into the Consumer Price Index. If the effect is negligible, then the
rally in cyclical stocks will be longer than our current prognosis and we may
increase our exposure to cyclical stocks accordingly.
JULIUS BAER GLOBAL INCOME FUND
During the six months ended April 30, 1999, the Income Fund returned -0.58%
compared with -0.43% for the customized benchmark index (80% Merrill Lynch
1-10Yr U.S. Corporate & Government Bond Index and 20% JP Morgan Global
Government Non-U.S. in U.S.$ Bond Index) (the "benchmark"). The Income Fund's
underperformance relative to the benchmark was largely due to market events
which occurred in March 1999. We believed that interest rates would continue to
rise in the medium term, and they did resume their rise in May 1999. However,
during March, bond yields were more stable. Consequently, while the index gained
0.70% in March, the Income Fund's short portfolio duration positioning for
defensive purposes limited its gain to 0.25%.
In the U.S., there was a notable rise in bond yields as concerns regarding
global investment risk subsided and very strong economic growth in the U.S. led
the market to anticipate a rise in interest rates by the U.S. Federal Reserve.
Coming on the heels of a rally in early December 1998, yields on U.S. Treasury
bonds rose to a high of 5.70% in February 1999 and remained near these levels as
of the end of the reporting period. In addition to strong U.S. economic growth,
a significant rise in global commodity prices, specifically oil, sparked
investor fears of upcoming inflationary pressure. With the U.S. economy running
near full capacity, global market participants began to anticipate that the
Federal Reserve would need to unwind some of the 75 basis point interest rate
easing initiated in the fall of 1998. In fact, however, there was no official
action and the Federal Reserve remained on hold. Since April 30, the Federal
Reserve has moved to an interest rate tightening bias. Consequently, the yield
on the 30-year bond has moved above 6% in anticipation of a rise in interest
rates.
Despite a volatile U.S. bond market, European bonds continued to rally
through January 1999 due to the positive prospects in the marketplace on the
formation of the European Monetary Union ("EMU") and the new European Currency
("Euro"). The bond sell-off in the U.S. eventually caused 10-year German bond
yields to rise 0.50% in February 1999. However, continued sluggish growth, low
inflation and spare capacity kept European bond prices from falling further.
Local currency returns on European bonds averaged 5% during the period. However,
this fundamental market indication was quite detrimental to the Euro, and the
new currency declined a dramatic 9.6% between its launch date on January 1, 1999
and April 30, 1999. Consequently, U.S. dollar returns on European bonds
2
<PAGE>
averaged approximately 5.5% during the reporting period. The Euro continued its
slide after the reporting period ended and fell to a new low of 1.0260 versus
the U.S. dollar, a 12% decline from its inception.
The Japanese Government announced early in the reporting period that it
would substantially reduce its custom of purchasing its own government bonds.
This ignited investor worry of excess supply in the marketplace and sparked a
pronounced sell off in Japanese government bonds. This sell-off culminated in
10-year interest rate yields rising from 1.6% to 2.45% by late January 1999.
Generally immune to the prevailing global interest rate trend, Japanese
government bonds began to rally in early February 1999 as the Japanese
Government tempered its initial statements and Japanese economic data remained
extremely weak. The Japanese yen staged a rally toward 108 versus the U.S.
dollar by mid-January 1999. However, the Japanese yen soon faltered, and once
again rose above 120 versus the U.S. dollar by late February. As Japan's
pronounced economic growth differential in comparison to the U.S. showed no
signs of narrowing, the yen remained weak for the remainder of the reporting
period.
Following the very strong global bond rally in the fall of 1998, we began
to scale back our long portfolio duration position and add exposure to
peripheral markets which had underperformed during the investor flight to
quality period in the fall of 1998. We increased exposure to U.S. corporate
bonds and entered positions in mortgage-backed securities and Greek Government
bonds. In early 1999, as persistent U.S. economic strength became apparent, we
reduced the Income Fund portfolio duration to an underweight relative to the
benchmark, enabling it to outperform the benchmark during negative performance
periods in global bond markets. By the end of the reporting period, we returned
to a neutral portfolio duration versus the benchmark, but maintained positions
in the portfolio that will likely benefit from global economic growth and
commodity price increases. These portfolio positions include Australian and
Canadian dollar-denominated bonds and U.S. Treasury Inflation Protected
Securities.
Since the capital markets crisis in late 1998, international equities have
staged a strong recovery and the Equity Fund has appreciated sharply. We
continue to believe that international equities offer significant value relative
to U.S. equities. Bond returns have been sub-par over the reporting period but
investors should remember the paradox of fixed income investing: what occurs in
the short term should have the opposite implication for the longer term. Rising
yields over the past six months should eventually lead to higher cash flow for
the Income Fund in the longer term.
Finally, on behalf of the management of the Julius Baer Investment Funds I
would like to express our appreciation to shareholders for their continued
support.
Sincerely,
/s/ Michael Quain
-----------------
Michael Quain
President
June 10, 1999
The views expressed in this shareholder letter reflect those of the President of
the Funds only through the end of the period covered by the report as stated on
the cover. This shareholder letter contains certain forward looking statements
regarding the intent, belief or current expectations of the President.
Shareholders are cautioned that such forward looking statements are not
guarantees of future performance and involve risks and uncertainties and that
actual results may differ materially from those in the forward looking
statements, as a result of various factors. The President's views are subject to
change based on market and other conditions.
3
<PAGE>
JULIUS BAER INVESTMENT FUNDS
JULIUS BAER GLOBAL INCOME FUND
PORTFOLIO OF INVESTMENTS
APRIL 30, 1999 (UNAUDITED)
(PERCENTAGE OF NET ASSETS)
<TABLE>
<CAPTION>
MARKET
FACE VALUE
CURRENCY VALUE (NOTE 1)
- --------- ------------- ------------
<S> <C> <C>
U.S. GOVERNMENT OBLIGATIONS -- 51.0%
Federal Home Loan Mortgage Corporation:
USD 400,000 5.750% due 07/15/2003............................................................ $ 401,938
USD 1,000,000 6.500% due 04/01/2029............................................................ 995,313
USD 975,000 7.000% due 04/01/2029............................................................ 989,473
Federal National Mortgage Association:
USD 220,000 5.625% due 03/15/2001.......................................................... 221,444
USD 1,200,000 5.750% due 04/15/2003............................................................ 1,206,375
U.S. Treasury Bill,
USD 1,350,000 4.540% due 08/19/1999.......................................................... 1,320,377
U.S. Treasury Inflation Indexed Bond,
USD 900,000 3.625% due 04/15/2028.......................................................... 875,981
U.S. Treasury Inflation Indexed Note,
USD 440,000 3.625% due 01/15/2008.......................................................... 439,044
U.S. Treasury Notes:
USD 575,000 6.625% due 06/30/2001.......................................................... 592,160
USD 800,000 5.750% due 04/30/2003............................................................ 813,625
USD 700,000 5.625% due 05/15/2008............................................................ 710,500
------------
TOTAL U.S. GOVERNMENT OBLIGATIONS (COST $8,624,187).............................. 8,566,230
------------
CORPORATE BONDS -- 24.5%
UNITED STATES-16.0%
ABN-Amro Bank NV (Chicago),
USD 800,000 7.250% due 05/31/2005.......................................................... 832,976
Ford Motor Credit Company,
USD 900,000 6.125% due 04/28/2003.......................................................... 905,040
Merrill Lynch & Company Inc,
USD 900,000 7.250% due 05/02/2002.......................................................... 929,752
------------
2,667,768
------------
NETHERLANDS-5.3%
Household Netherlands BV (Yankee),
USD 900,000 6.200% due 12/01/2003.......................................................... 896,555
------------
</TABLE>
See Notes to Financial Statements.
4
<PAGE>
JULIUS BAER INVESTMENT FUNDS
JULIUS BAER GLOBAL INCOME FUND
PORTFOLIO OF INVESTMENTS -- (CONTINUED)
APRIL 30, 1999 (UNAUDITED)
(PERCENTAGE OF NET ASSETS)
<TABLE>
<CAPTION>
MARKET
FACE VALUE
CURRENCY VALUE (NOTE 1)
- --------- ------------- ------------
CORPORATE BONDS -- (CONTINUED)
<S> <C> <C>
MULTI-NATIONAL-2.0%
EUROFIMA,
GBP 200,000 7.250% due 12/30/2003.......................................................... $ 344,144
------------
SPAIN-1.2%
Instituto de Credito Official,
USD 200,000 6.000% due 05/19/2008.......................................................... 200,713
------------
TOTAL CORPORATE BONDS (COST $4,144,629).......................................... 4,109,180
------------
FOREIGN GOVERNMENT BONDS-20.7%
GREECE-6.5%
Hellenic Republic,
GRD 300,000,000 8.900% due 03/21/2004.......................................................... 1,077,465
------------
GERMANY-4.8%
BundesObligation,
EUR 138,048 5.000% due 11/12/2002.......................................................... 155,547
Deutschland BundesRepublic:
EUR 204,516 6.000% due 07/04/2007.......................................................... 248,816
EUR 347,678 5.625% due 01/04/2028............................................................ 407,185
------------
811,548
------------
AUSTRALIA-2.9%
Government of Australia,
AUD 650,000 10.000% due 10/15/2002......................................................... 494,624
------------
CANADA-2.9%
Canadian Government,
CAD 700,000 5.250% due 09/01/2003.......................................................... 485,048
------------
FINLAND-2.3%
Republic of Finland,
USD 350,000 7.875% due 07/28/2004.......................................................... 381,726
------------
</TABLE>
See Notes to Financial Statements.
5
<PAGE>
JULIUS BAER INVESTMENT FUNDS
JULIUS BAER GLOBAL INCOME FUND
PORTFOLIO OF INVESTMENTS -- (CONTINUED)
APRIL 30, 1999 (UNAUDITED)
(PERCENTAGE OF NET ASSETS)
<TABLE>
<CAPTION>
MARKET
FACE VALUE
CURRENCY VALUE (NOTE 1)
- --------- ------------- ------------
FOREIGN GOVERNMENT BONDS -- (CONTINUED)
<S> <C> <C>
UNITED KINGDOM-1.3%
United Kingdom Gilts,
GBP 175,000 0.000% due 12/07/2003 (effective yield 4.863%)................................. $ 225,789
------------
TOTAL FOREIGN GOVERNMENT BONDS (COST $3,517,919)................................. 3,476,200
------------
TOTAL INVESTMENTS -- 96.2% (COST $16,286,735).................................... 16,151,610
OTHER ASSETS AND LIABILITIES (NET) -- 3.8%....................................... 639,551
------------
NET ASSETS -- 100.0%............................................................. $ 16,791,161
------------
------------
</TABLE>
See Notes to Financial Statements.
6
<PAGE>
JULIUS BAER INVESTMENT FUNDS
JULIUS BAER GLOBAL INCOME FUND
SCHEDULE OF FORWARD FOREIGN EXCHANGE CONTRACTS
APRIL 30, 1999 (UNAUDITED)
FORWARD FOREIGN EXCHANGE CONTRACTS TO BUY
<TABLE>
<CAPTION>
CONTRACTS TO RECEIVE
---------------------------------
EXPIRATION LOCAL VALUE IN IN EXCHANGE NET UNREALIZED
DATE CURRENCY USD FOR USD DEPRECIATION
- ---------- -------------------- -------- ----------- --------------
<S> <C> <C> <C> <C>
5/05/99 AUD 752,213 497,782 498,416 $ (634)
7/12/99 EUR 768,968 816,775 900,000 (83,225)
--------
Net unrealized depreciation on forward foreign
exchange contracts to buy......................... $(83,859)
--------
--------
</TABLE>
FORWARD FOREIGN EXCHANGE CONTRACTS TO SELL
<TABLE>
<CAPTION>
CONTRACTS TO DELIVER
---------------------------------
EXPIRATION LOCAL VALUE IN IN EXCHANGE NET UNREALIZED
DATE CURRENCY USD FOR USD APPRECIATION
- ---------- -------------------- -------- ----------- --------------
<S> <C> <C> <C> <C>
7/12/99 EUR 570,576 606,049 650,000 $ 43,951
7/12/99 EUR 230,012 244,312 250,000 5,688
--------
Net unrealized appreciation on forward foreign
exchange contracts to sell........................ $ 49,639
--------
--------
</TABLE>
FORWARD FOREIGN CROSS CURRENCY CONTRACTS
<TABLE>
<CAPTION>
CONTRACTS TO DELIVER CONTRACTS TO RECEIVE
--------------------------------- ---------------------------------
EXPIRATION LOCAL VALUE IN LOCAL VALUE IN NET UNREALIZED
DATE CURRENCY USD CURRENCY USD APPRECIATION
- ---------- -------------------- -------- -------------------- -------- --------------
<S> <C> <C> <C> <C> <C>
9/22/99 EUR 700,000 747,158 NOK 6,020,490 767,186 $ 20,028
--------
Net unrealized appreciation on forward foreign cross currency
contracts................................................................ $ 20,028
--------
--------
</TABLE>
GLOSSARY OF CURRENCIES
AUD -- Australian Dollar GRD -- Greek Drachma
CAD -- Canadian Dollar NOK -- Norwegian Krone
EUR -- Euro USD -- United States Dollar
GBP -- British Pound Sterling
See Notes to Financial Statements.
7
<PAGE>
JULIUS BAER INVESTMENT FUNDS
JULIUS BAER INTERNATIONAL EQUITY FUND
PORTFOLIO OF INVESTMENTS
APRIL 30, 1999 (UNAUDITED)
(PERCENTAGE OF NET ASSETS)
<TABLE>
<CAPTION>
MARKET
SHARE VALUE
DESCRIPTION AMOUNT (NOTE 1)
- ------------------------------------------------------------------------------------ ---------- -----------
<S> <C> <C>
COMMON STOCKS -- 100.1%
JAPAN-17.0%
Acom Co Ltd......................................................................... 8,000 $ 599,740
Canon Sales Co Inc.................................................................. 400 6,202
Circle K Japan Co Ltd............................................................... 66 2,985
Daiwa Securities Co Ltd............................................................. 59,000 360,766
DDI Corporation..................................................................... 70 347,699
Fuji Soft ABC Inc................................................................... 7,000 425,682
Fujitsu Ltd......................................................................... 25,500 436,801
Honda Motor Co Ltd.................................................................. 8,000 352,473
Ito-Yokado Co Ltd................................................................... 5,000 306,990
Japan Telecom Co Ltd................................................................ 4,000 566,235
Japan Tobacco Inc................................................................... 3,200 321,648
Kao Corp............................................................................ 27,000 685,262
Kirin Brewery Co Ltd................................................................ 46,000 520,166
KDD Corporation..................................................................... 5,500 333,543
Nikko Securities Co Ltd............................................................. 75,000 430,330
Nippon Telegraph & Telephone Corporation ADR*....................................... 5,375 288,906
Nippon Telegraph & Telephone Corporation............................................ 1,600 174,226
Nomura Securities Co Ltd............................................................ 30,000 323,659
NTT Data Corporation................................................................ 67 530,343
NTT Mobile Communication Network, Inc. (a) ......................................... 900 527,704
Ryohin Keikaku Co Ltd............................................................... 3,500 637,643
Sakura Bank Ltd..................................................................... 100,000 386,146
Sankyo Co Ltd....................................................................... 10,000 209,825
Softbank Corp....................................................................... 6,000 798,593
Sony Corp........................................................................... 5,400 504,335
Takeda Chemical Industries.......................................................... 16,000 695,565
The Bank of Tokyo-Mitsubishi Ltd.................................................... 24,000 354,215
The Sanwa Bank Ltd.................................................................. 32,000 359,174
-----------
11,486,856
-----------
</TABLE>
See Notes to Financial Statements.
8
<PAGE>
JULIUS BAER INVESTMENT FUNDS
JULIUS BAER INTERNATIONAL EQUITY FUND
PORTFOLIO OF INVESTMENTS -- (CONTINUED)
APRIL 30, 1999 (UNAUDITED)
(PERCENTAGE OF NET ASSETS)
<TABLE>
<CAPTION>
MARKET
SHARE VALUE
DESCRIPTION AMOUNT (NOTE 1)
- ------------------------------------------------------------------------------------ ---------- -----------
<S> <C> <C>
COMMON STOCKS -- CONTINUED
FRANCE-14.1%
Accor SA............................................................................ 2,031 $ 535,618
Alcatel Alsthom..................................................................... 5,000 614,117
Axa-UAP............................................................................. 5,300 684,577
Banque National De Paris............................................................ 4,347 360,460
Canal Plus.......................................................................... 2,210 614,827
Cap Gemini SA (a) .................................................................. 3,294 503,810
Carrefour Supermarche*.............................................................. 645 511,324
Castorama Dubois.................................................................... 1,470 351,933
Compagnie Generale des Eaux......................................................... 3,091 722,375
Elf-Aquitaine SA.................................................................... 6,020 935,382
France Telecom SA................................................................... 7,380 596,360
L'Oreal............................................................................. 1 641
Rhone Polenc........................................................................ 8,076 384,135
Sanofi SA........................................................................... 2,400 376,207
Societe Generale.................................................................... 1,937 346,831
Suez Lyonnaise des Eaux............................................................. 2,670 454,373
Synthelabo.......................................................................... 1,800 368,153
Total SA Class B.................................................................... 6,492 889,321
Unilog SA........................................................................... 600 289,829
-----------
9,540,273
-----------
UNITED KINGDOM-12.4%
ARM Holdings Plc ADR*............................................................... 48,560 1,578,200
British Airport Authority Plc....................................................... 176 1,841
British Petroleum Co Plc............................................................ 50,249 953,170
British Telecommunications Plc...................................................... 31,011 520,889
Colt Telecom Group Plc*............................................................. 10,000 763,750
Glaxo Wellcome Plc.................................................................. 14,384 425,358
HSBC Holdings Plc................................................................... 14,748 562,118
Kingfisher Plc...................................................................... 24,500 366,588
Lloyds TSB Group Plc................................................................ 26,344 424,061
National Westminster Bank Plc....................................................... 25,900 623,808
Royal & Sun Alliance Insurance Group................................................ 616 5,312
Smithkline Beecham Plc.............................................................. 42,169 557,692
South African Breweries Plc......................................................... 2,742 22,981
</TABLE>
See Notes to Financial Statements.
9
<PAGE>
JULIUS BAER INVESTMENT FUNDS
JULIUS BAER INTERNATIONAL EQUITY FUND
PORTFOLIO OF INVESTMENTS -- (CONTINUED)
APRIL 30, 1999 (UNAUDITED)
(PERCENTAGE OF NET ASSETS)
<TABLE>
<CAPTION>
MARKET
SHARE VALUE
DESCRIPTION AMOUNT (NOTE 1)
- ------------------------------------------------------------------------------------ ---------- -----------
<S> <C> <C>
COMMON STOCKS -- CONTINUED
UNITED KINGDOM -- CONTINUED
Tesco Plc........................................................................... 144,017 $ 428,082
Unilever Plc........................................................................ 54,788 485,698
Vodafone Group Plc.................................................................. 36,697 676,029
-----------
8,395,577
-----------
NETHERLANDS-8.5%
Benckiser NV........................................................................ 12,000 662,105
Equant NV*.......................................................................... 8,350 758,149
Heineken NV......................................................................... 12,175 611,276
ING Groep NV........................................................................ 10,939 674,095
KLM Royal Dutch Airlines NV......................................................... 11,100 336,717
Koninklijke Ahold NV................................................................ 13,004 483,145
Laurus NV........................................................................... 26,210 563,776
Philips Electronics NV.............................................................. 7,580 652,983
Scala Business Solutions*........................................................... 2,774 17,446
United Pan-Europe Communications NV*................................................ 15,250 789,037
Vendex NV........................................................................... 8,000 199,139
Wolters Kluwer NV................................................................... 36 1,568
-----------
5,749,436
-----------
GERMANY-7.8%
AVA Allgemeine Handelsgesellschaft der Verbraucher AG............................... 940 344,275
Bayer AG............................................................................ 9,100 386,672
DaimlerChrysler AG.................................................................. 3,216 317,666
Deutsche Bank AG.................................................................... 6,000 348,810
Intershop Communications AG*........................................................ 1,300 313,295
Karstadt AG......................................................................... 700 314,827
Mannesmann AG....................................................................... 5,000 658,511
Medion AG*.......................................................................... 1,800 367,202
Metro AG............................................................................ 10,560 763,475
Preussag AG......................................................................... 7,000 368,470
PrimaCom AG*........................................................................ 8,225 356,447
Siemens AG.......................................................................... 5,500 406,945
Telegate AG*........................................................................ 200 8,985
Volkswagen AG....................................................................... 4,350 308,522
-----------
5,264,102
-----------
</TABLE>
See Notes to Financial Statements.
10
<PAGE>
JULIUS BAER INVESTMENT FUNDS
JULIUS BAER INTERNATIONAL EQUITY FUND
PORTFOLIO OF INVESTMENTS -- (CONTINUED)
APRIL 30, 1999 (UNAUDITED)
(PERCENTAGE OF NET ASSETS)
<TABLE>
<CAPTION>
MARKET
SHARE VALUE
DESCRIPTION AMOUNT (NOTE 1)
- ------------------------------------------------------------------------------------ ---------- -----------
<S> <C> <C>
COMMON STOCKS -- CONTINUED
ITALY-6.7%
Assicurazioni Generali.............................................................. 15,200 $ 591,726
Banca Intesa SPA.................................................................... 55,000 293,756
Banca Popolare di Brescia (a) ...................................................... 15,600 536,888
Gucci Group......................................................................... 3,000 226,313
Istituto Bancario San Paolo di Torino............................................... 32,000 481,316
Istituto Nazionale delle Assicurazioni.............................................. 150,000 396,216
Mediolanum SPA...................................................................... 52,500 345,718
Telecom Italia Mobile............................................................... 91,000 548,074
Telecom Italia SPA.................................................................. 104,200 1,103,046
-----------
4,523,053
-----------
SWITZERLAND-4.7%
Adecco SA........................................................................... 1,139 574,242
CS Holdings (Registered)............................................................ 1,750 347,063
Nestle SA (Registered).............................................................. 376 695,895
Novartis AG (Bearer)................................................................ 75 109,700
Novartis AG (Registered)............................................................ 330 483,112
Roche Holdings AG................................................................... 210 370,216
Zurich Allied AG.................................................................... 880 567,128
-----------
3,147,356
-----------
GREECE-3.7%
Alpha Credit Bank................................................................... 8,444 602,869
Antenna TV SA ADR*.................................................................. 5,100 59,925
Commercial Bank of Greece SA........................................................ 4,596 803,935
Hellenic Telecommunication Organization SA.......................................... 18,102 420,034
National Bank of Greece............................................................. 9,012 614,322
-----------
2,501,085
-----------
FINLAND-3.0%
Nokia Oyj........................................................................... 12,400 958,107
Raisio Group Plc.................................................................... 33,100 306,134
Rauma Oyj........................................................................... 167 2,242
</TABLE>
See Notes to Financial Statements.
11
<PAGE>
JULIUS BAER INVESTMENT FUNDS
JULIUS BAER INTERNATIONAL EQUITY FUND
PORTFOLIO OF INVESTMENTS -- (CONTINUED)
APRIL 30, 1999 (UNAUDITED)
(PERCENTAGE OF NET ASSETS)
<TABLE>
<CAPTION>
MARKET
SHARE VALUE
DESCRIPTION AMOUNT (NOTE 1)
- ------------------------------------------------------------------------------------ ---------- -----------
<S> <C> <C>
COMMON STOCKS -- CONTINUED
FINLAND -- CONTINUED
Sonera Group Oyj.................................................................... 20,000 $ 395,318
UPM-Kymmene Oyj..................................................................... 12,500 377,745
-----------
2,039,546
-----------
THAILAND-1.9%
Bangkok Bank Public Company Ltd (Foreign Shares) (Registered)*...................... 132,000 395,252
Siam Commercial Bank (Foreign Shares)*.............................................. 389,000 514,189
Thai Farmers Bank Public Company Ltd (Foreign Shares)*.............................. 138,000 383,437
-----------
1,292,878
-----------
PORTUGAL-1.9%
Banco Espirito Santo (Registered)................................................... 23,025 553,433
Jeronimo Martins SGPS SA New 1999*.................................................. 2,749 85,776
Jeronimo Martins.................................................................... 8,247 271,537
Telecel Comunicacoes Pessoai........................................................ 2,850 381,075
-----------
1,291,821
-----------
SPAIN-1.9%
Banco Popular Espanol SA............................................................ 8,000 566,552
Tabacalera SA Class A............................................................... 13,500 264,699
Telefonica de Espana................................................................ 9,000 421,902
-----------
1,253,153
-----------
SWEDEN-1.8%
Autoliv Inc ADR*.................................................................... 8,300 288,242
Ericsson AB Class B................................................................. 12,420 326,067
Mandamus AB......................................................................... 625 3,467
Nordbanken Holding AB............................................................... 89,650 563,168
-----------
1,180,944
-----------
UNITED STATES-1.5%
Global TeleSystems Group Inc*....................................................... 11,000 727,375
MIH Ltd*............................................................................ 13,000 253,500
-----------
980,875
-----------
CANADA-1.4%
Barrick Gold Corp................................................................... 3,000 60,375
Canadian Imperial Bank of Commerce.................................................. 64 1,647
</TABLE>
See Notes to Financial Statements.
12
<PAGE>
JULIUS BAER INVESTMENT FUNDS
JULIUS BAER INTERNATIONAL EQUITY FUND
PORTFOLIO OF INVESTMENTS -- (CONTINUED)
APRIL 30, 1999 (UNAUDITED)
(PERCENTAGE OF NET ASSETS)
<TABLE>
<CAPTION>
MARKET
SHARE VALUE
DESCRIPTION AMOUNT (NOTE 1)
- ------------------------------------------------------------------------------------ ---------- -----------
<S> <C> <C>
COMMON STOCKS -- CONTINUED
CANADA -- CONTINUED
Royal Bank of Canada................................................................ 6,740 $ 328,837
The Seagram Company Ltd............................................................. 10,000 573,750
-----------
964,609
-----------
IRELAND-1.4%
Anglo Irish Bank Corporation Plc.................................................... 173,000 512,145
Bank of Ireland..................................................................... 21,352 427,183
-----------
939,328
-----------
AUSTRALIA-1.2%
Australia & New Zealand Bank Group.................................................. 50,549 400,406
Star City Holdings Ltd.............................................................. 60,000 67,499
The News Corporation Ltd............................................................ 43,397 363,684
-----------
831,589
-----------
MEXICO-1.1%
Grupo Financiero Banamex Accival SA Class O*........................................ 300,500 766,133
-----------
BERMUDA-1.1%
Global Crossing Ltd*................................................................ 14,000 756,000
-----------
TURKEY-1.0%
Aksigorta AS........................................................................ 1,937,000 126,049
Haci Omer Sabanci Holding AS........................................................ 4,767,000 130,775
Kazkommertsbank Co GDR*............................................................. 6,659 143,169
Turkiye Garanti Bankasi AS*......................................................... 2,867,000 129,866
Yapi Ve Kredi Bankasi............................................................... 5,633,000 135,126
-----------
664,985
-----------
PHILIPPINES-1.0%
Ayala Land Inc...................................................................... 405,000 149,112
Metropolitan Bank & Trust Company................................................... 37,005 369,807
Philippine Long Distance Telephone Company.......................................... 4,440 143,621
-----------
662,540
-----------
DENMARK-0.9%
Tele Danmark SA Class B............................................................. 5,700 587,738
-----------
</TABLE>
See Notes to Financial Statements.
13
<PAGE>
JULIUS BAER INVESTMENT FUNDS
JULIUS BAER INTERNATIONAL EQUITY FUND
PORTFOLIO OF INVESTMENTS -- (CONTINUED)
APRIL 30, 1999 (UNAUDITED)
(PERCENTAGE OF NET ASSETS)
<TABLE>
<CAPTION>
MARKET
SHARE VALUE
DESCRIPTION AMOUNT (NOTE 1)
- ------------------------------------------------------------------------------------ ---------- -----------
<S> <C> <C>
COMMON STOCKS -- CONTINUED
BRAZIL-0.7%
Telecomunicacoes Brasileiras SA ADR................................................. 5,000 $ 455,938
Telecomunicacoes Brasileiras SA*.................................................... 5,000 391
-----------
456,329
-----------
SINGAPORE-0.7%
Development Bank of Singapore Ltd................................................... 14,000 148,559
Singapore Press Holdings Ltd........................................................ 9,000 132,642
Singapore Telecommunications Ltd.................................................... 86,000 159,194
-----------
440,395
-----------
NORWAY-0.5%
Christiania Bank Og Kreditkasse..................................................... 79,600 305,742
-----------
HUNGARY-0.4%
Magyar Tavkozlesi Rt ADR*........................................................... 8,980 252,563
Mol Magyar Olaj-Es Gazipari......................................................... 1,950 43,444
-----------
296,007
-----------
ESTONIA-0.4%
Estonian Telecom Ltd GDR............................................................ 13,600 287,640
-----------
INDONESIA-0.4%
Pt Indocement Tunggal Prakarsa*..................................................... 178,000 68,356
Pt Indofood Sukses Makmur*.......................................................... 46,000 36,469
Pt Indostat......................................................................... 18,500 35,751
Pt Kalbe Farma*..................................................................... 525,000 35,770
Pt Semen Gresik..................................................................... 23,000 36,185
Pt Telekomunikasi Indonesia......................................................... 164,000 73,137
-----------
285,668
-----------
HONG KONG-0.3%
China Telecom (Hong Kong) Ltd*...................................................... 74,000 168,985
-----------
POLAND-0.2%
Bank Rozwoju Eksportu SA............................................................ 1,560 34,724
Elektrim SA......................................................................... 5,000 59,441
Mostostal-Export SA................................................................. 10,558 13,486
-----------
107,651
-----------
</TABLE>
See Notes to Financial Statements.
14
<PAGE>
JULIUS BAER INVESTMENT FUNDS
JULIUS BAER INTERNATIONAL EQUITY FUND
PORTFOLIO OF INVESTMENTS -- (CONTINUED)
APRIL 30, 1999 (UNAUDITED)
(PERCENTAGE OF NET ASSETS)
<TABLE>
<CAPTION>
MARKET
SHARE VALUE
DESCRIPTION AMOUNT (NOTE 1)
- ------------------------------------------------------------------------------------ ---------- -----------
<S> <C> <C>
COMMON STOCKS -- CONTINUED
MAURITIUS-0.1%
New Mauritius Hotels Ltd............................................................ 23,500 $ 43,414
State Bank of Mauritius Ltd......................................................... 72,000 42,217
-----------
85,631
-----------
NEW ZEALAND-0.1%
Lion Nathan......................................................................... 27,000 68,052
Sky Network Television Ltd*......................................................... 1,000 16,500
-----------
84,552
-----------
CHILE-0.1%
Vina Concha Y Toro.................................................................. 2,500 81,094
-----------
SOUTH AFRICA-0.1%
Edgars Stores Ltd................................................................... 100 511
Nedcor Ltd.......................................................................... 2,946 64,391
-----------
64,902
-----------
SOUTH KOREA-0.1%
Korea Electric Power Corp........................................................... 2,500 41,250
-----------
MALAYSIA-0.0%
Arab-Malaysian Merchant Bank........................................................ 358 467
-----------
BELGIUM-0.0%
Algemene Maatschappij voor Nijverheidskredit NV..................................... 90 7
-----------
PERU-0.0%
Cementos Lima SA--Trabajo........................................................... 1 2
-----------
TOTAL COMMON STOCKS (COST $51,499,465).............................................. 67,526,199
-----------
PREFERRED STOCKS--1.1%
GERMANY-1.1%
Marschollek, Lautenschlaeger und Partner AG......................................... 800 448,168
Wella AG............................................................................ 350 275,613
-----------
TOTAL PREFERRED STOCKS (COST $749,876).............................................. 723,781
-----------
INVESTMENT FUNDS--0.1%
MULTI-NATIONAL-0.1%
Morgan Stanley Africa Investment Fund Inc........................................... 3,100 32,550
-----------
</TABLE>
See Notes to Financial Statements.
15
<PAGE>
JULIUS BAER INVESTMENT FUNDS
JULIUS BAER INTERNATIONAL EQUITY FUND
PORTFOLIO OF INVESTMENTS -- (CONTINUED)
APRIL 30, 1999 (UNAUDITED)
(PERCENTAGE OF NET ASSETS)
<TABLE>
<CAPTION>
MARKET
SHARE VALUE
DESCRIPTION AMOUNT (NOTE 1)
- ------------------------------------------------------------------------------------ ---------- -----------
<S> <C> <C>
INVESTMENT FUNDS -- CONTINUED
POLAND-0.0%
NFI Drugi SA*....................................................................... 1,500 $ 1,404
NFI Foksal SA*...................................................................... 1,500 1,669
NFI Fortuna SA*..................................................................... 1,500 1,916
NFI Hetman SA*...................................................................... 1,500 1,973
NFI Jedenasty SA*................................................................... 1,500 1,518
NFI Kwiatkowski SA*................................................................. 1,500 2,409
NFI Magna Polonia SA*............................................................... 1,500 2,618
NFI Octava SA*...................................................................... 1,500 2,144
NFI Piast SA*....................................................................... 1,500 1,423
NFI Pierwszy SA*.................................................................... 1,500 1,575
NFI Progress SA*.................................................................... 1,500 2,011
NFI Siodmy Kazimierza Wielkiego SA*................................................. 1,500 1,404
NFI Trzeci SA*...................................................................... 1,500 1,499
NFI Victoria SA*.................................................................... 1,500 1,935
NFI Zachodni SA*.................................................................... 1,500 2,087
-----------
27,585
-----------
TOTAL INVESTMENT FUNDS (COST $114,975).............................................. 60,135
-----------
RIGHTS & WARRANTS--0.1%
HUNGARY-0.1%
Egis Rights*........................................................................ 780 15,813
Pick Szeged Rights*................................................................. 534 16,938
-----------
32,751
-----------
SPAIN-0.0%
Telefonica SA Rights*............................................................... 9,000 8,371
-----------
FRANCE-0.0%
Compagnie Generale des Eaux Warrants, expire 5/02/2001* 2,110 4,661
-----------
HONG KONG-0.0%
China Everbright Ltd Warrants, expire 1/05/2000*.................................... 21,000 2,249
-----------
BRAZIL-0.0%
Brahma Warrants, expire 4/30/2003*.................................................. 9,993 271
-----------
GREECE-0.0%
National Bank of Greece Rights*..................................................... 14,812 144
-----------
</TABLE>
See Notes to Financial Statements.
16
<PAGE>
JULIUS BAER INVESTMENT FUNDS
JULIUS BAER INTERNATIONAL EQUITY FUND
PORTFOLIO OF INVESTMENTS -- (CONTINUED)
APRIL 30, 1999 (UNAUDITED)
(PERCENTAGE OF NET ASSETS)
<TABLE>
<CAPTION>
MARKET
SHARE VALUE
DESCRIPTION AMOUNT (NOTE 1)
- ------------------------------------------------------------------------------------ ---------- ---------
<S> <C> <C>
RIGHTS & WARRANTS -- CONTINUED
THAILAND-0.0%
Siam Commercial Bank Public Company Ltd Warrants, expire 12/31/2002*................. 2,100 $ 0
----------
TOTAL RIGHTS & WARRANTS (COST $49,800) .............................................. 48,447
----------
<CAPTION>
FACE
CURRENCY VALUE
-------- ----------
<S> <C> <C>
CORPORATE BONDS--0.0%
PORTUGAL-0.0%
Jeronimo Martins 0.000%, 12/30/2004 (cost $15,535).............................. PTE 2,879,000 $ 17,913
-----------
REPURCHASE AGREEMENTS--1.9%
UNITED STATES-1.9%
Investors Bank & Trust Company Repurchase Agreement dated 04/30/1999,
due 05/03/1999, with a maturity value of $1,298,576 and an effective yield
of 4.250%, collateralized by a Federal National Mortgage Association
obligation, with a rate of 7.331%, a maturity date of 06/01/2025, and a
market value of $1,363,084 (at cost)............................................ USD 1,298,117 1,298,117
-----------
TOTAL INVESTMENTS-103.3% (COST $53,727,768)......................................... 69,674,592
OTHER ASSETS AND LIABILITIES (NET)-(3.3%)........................................... (2,204,772)
-----------
TOTAL NET ASSETS-100.0%............................................................. $67,469,820
-----------
-----------
</TABLE>
PORTFOLIO FOOTNOTES:
ADR American Depository Receipt
GDR Global Depository Receipt
* Non-income producing security.
(a) Securities that may be resold to "qualified institutional buyers"
under Rule 144A or securities offered pursuant to Section 4 (2) of
the Securities Act of 1933, as amended. These securities have been
determined to be liquid under guidelines established by the Board
of Trustees.
See Notes to Financial Statements.
17
<PAGE>
JULIUS BAER INVESTMENT FUNDS
JULIUS BAER INTERNATIONAL EQUITY FUND
SCHEDULE OF FORWARD FOREIGN EXCHANGE CONTRACTS
APRIL 30, 1999 (UNAUDITED)
FORWARD FOREIGN EXCHANGE CONTRACTS TO BUY
<TABLE>
<CAPTION>
CONTRACTS TO RECEIVE
----------------------------------
EXPIRATION LOCAL VALUE IN IN EXCHANGE NET UNREALIZED
DATE CURRENCY USD FOR USD DEPRECIATION
- ---------- -------------------- --------- ----------- --------------
<S> <C> <C> <C> <C>
5/03/99 EUR 4,330,000 4,577,715 4,589,800 $(12,085)
5/04/99 EUR 680,746 719,738 721,454 (1,716)
--------
Net unrealized depreciation on forward foreign
exchange contracts to buy.......................... $(13,801)
--------
--------
</TABLE>
FORWARD FOREIGN EXCHANGE CONTRACTS TO SELL
<TABLE>
<CAPTION>
CONTRACTS TO DELIVER
---------------------------------- NET UNREALIZED
EXPIRATION LOCAL VALUE IN IN EXCHANGE APPRECIATION
DATE CURRENCY USD FOR USD (DEPRECIATION)
- ---------- -------------------- --------- ----------- --------------
<S> <C> <C> <C> <C>
5/03/99 EUR 4,330,000 4,577,715 4,683,761 $ 106,046
5/24/99 EUR 2,707,093 2,865,923 2,878,722 12,799
5/24/99 JPY 326,248,569 2,741,737 2,724,869 (16,868)
6/03/99 EUR 4,330,000 4,587,136 4,598,893 11,757
----------
Net unrealized appreciation on forward foreign
exchange contracts to sell......................... $ 113,734
----------
----------
</TABLE>
GLOSSARY OF CURRENCIES
EUR -- Euro PTE -- Portuguese Escudo
JPY -- Japanese Yen USD -- United States Dollar
See Notes to Financial Statements.
18
<PAGE>
JULIUS BAER INVESTMENT FUNDS
JULIUS BAER INTERNATIONAL EQUITY FUND
PORTFOLIO OF INVESTMENTS--INDUSTRY SECTOR (UNAUDITED)
APRIL 30, 1999
(PERCENTAGE OF NET ASSETS)
At April 30, 1999, sector diversification of the Fund's investments was as
follows:
<TABLE>
<CAPTION>
MARKET
% OF NET VALUE
ASSETS (NOTE 1)
---------- -----------
<S> <C> <C>
INDUSTRY SECTOR:
Banking...................................................................................... 17.7% $12,042,326
Telephone Systems............................................................................ 12.3 8,352,971
Communications............................................................................... 9.3 6,261,636
Beverages, Food and Tobacco.................................................................. 8.0 5,374,766
Financial Services........................................................................... 6.6 4,483,485
Retailers.................................................................................... 6.4 4,309,488
Insurance.................................................................................... 5.0 3,390,821
Oil and Gas.................................................................................. 4.2 2,821,317
Pharmaceuticals.............................................................................. 3.9 2,642,181
Electronics.................................................................................. 3.8 2,548,921
Computers and Information.................................................................... 3.4 2,283,372
Chemicals.................................................................................... 2.7 1,810,122
Media--Broadcasting and Publishing........................................................... 2.7 1,799,093
Heavy Machinery.............................................................................. 1.9 1,311,494
Automotive................................................................................... 1.9 1,266,903
Computer Software and Processing............................................................. 1.9 1,260,233
Food Retailers............................................................................... 1.5 991,858
Cosmetics and Personal Care.................................................................. 1.4 938,359
Industrial--Diversified...................................................................... 1.3 895,860
Health....................................................................................... 0.9 580,041
Lodging...................................................................................... 0.9 579,032
Commercial Services.......................................................................... 0.9 574,242
Other........................................................................................ 2.8 1,857,954
------ -----------
TOTAL INVESTMENTS (EXCLUDES REPURCHASE AGREEMENT).............................................. 101.4 68,376,475
OTHER ASSETS AND LIABILITIES (NET)............................................................. (1.4) (906,655)
------ -----------
NET ASSETS..................................................................................... 100.0% $67,469,820
------ -----------
------ -----------
</TABLE>
See Notes to Financial Statements.
19
<PAGE>
JULIUS BAER INVESTMENT FUNDS
STATEMENTS OF ASSETS AND LIABILITIES
APRIL 30, 1999 (UNAUDITED)
<TABLE>
<CAPTION>
JULIUS BAER JULIUS BAER
GLOBAL INCOME INTERNATIONAL EQUITY
FUND FUND
------------- --------------------
<S> <C> <C>
ASSETS:
Investments in securities, at value (Cost $16,286,735 and $52,429,651,
respectively).................................................................... $16,151,610 $ 68,376,475
Repurchase agreements, at cost...................................................... -- 1,298,117
Foreign currency, at value (Cost $12,065 and $0, respectively)...................... 12,609 --
Receivables:
Investments sold................................................................. 677,854 1,872,559
Fund shares sold................................................................. 355,151 851,118
Interest and dividends........................................................... 240,403 110,249
Tax reclaim...................................................................... -- 58,981
Unrealized appreciation on forward foreign exchange contracts....................... 69,667 130,602
Prepaid expense..................................................................... 811 3,028
----------- ------------
Total Assets..................................................................... 17,508,105 72,701,129
----------- ------------
LIABILITIES:
Payables:
Investments purchased............................................................ 497,777 4,316,853
Fund shares repurchased.......................................................... -- 5,376
Payable to custodian............................................................. 90,514 590,468
Investment advisory fee payable.................................................. 12,882 160,955
Distribution and shareholder servicing fees (Note 3)............................. 10,034 40,143
Unrealized depreciation on forward foreign exchange contracts....................... 83,859 30,669
Accrued expenses and other payables................................................. 21,878 86,845
----------- ------------
Total Liabilities................................................................ 716,944 5,231,309
----------- ------------
NET ASSETS............................................................................ $16,791,161 $ 67,469,820
----------- ------------
----------- ------------
NET ASSETS CONSIST OF:
Par value........................................................................... $ 1,410 $ 3,626
Paid in capital in excess of par value.............................................. 17,428,445 47,729,619
Distributions in excess of income................................................... (100,087) (942,285)
Accumulated net realized gain (loss) on investments sold, forward foreign exchange
contracts and foreign currency transactions...................................... (386,595) 4,620,414
Net unrealized appreciation (depreciation) on investments, forward foreign exchange
contracts and foreign currency related transactions.............................. (152,012) 16,058,446
----------- ------------
NET ASSETS............................................................................ $16,791,161 $ 67,469,820
----------- ------------
----------- ------------
SHARES OUTSTANDING.................................................................... 1,409,700 3,625,724
----------- ------------
----------- ------------
NET ASSET VALUE AND REDEMPTION PRICE PER SHARE........................................ $ 11.91 $ 18.61
----------- ------------
----------- ------------
</TABLE>
See Notes to Financial Statements.
20
<PAGE>
JULIUS BAER INVESTMENT FUNDS
STATEMENTS OF OPERATIONS
FOR THE SIX MONTHS ENDED APRIL 30, 1999 (UNAUDITED)
<TABLE>
<CAPTION>
JULIUS BAER JULIUS BAER
GLOBAL INCOME INTERNATIONAL EQUITY
FUND FUND
------------- --------------------
<S> <C> <C>
INVESTMENT INCOME:
Interest............................................................................ $ 419,653 $ 26,776
Dividends+.......................................................................... -- 293,544
--------- ------------
419,653 320,320
EXPENSES:
Investment advisory fee (Note 2).................................................... 50,998 320,664
Custody and administration fees..................................................... 20,390 116,632
Distribution and shareholder servicing fees (Note 3)................................ 19,615 80,166
Professional fees................................................................... 11,133 54,967
Transfer agent fees................................................................. 9,789 12,451
Trustees' fees and expenses (Note 2)................................................ 6,116 6,116
Registration and filing fees........................................................ 3,496 7,497
Shareholder reports................................................................. 4,059 18,409
Insurance premium expense........................................................... 2,359 9,164
Miscellaneous fees.................................................................. 499 998
--------- ------------
Total gross expenses............................................................. 128,454 627,064
Less: Fees paid indirectly (Note 2).............................................. (199) (4,858)
Less: Fees waived by investment adviser (Note 2)................................. (25,499) --
--------- ------------
Net expenses..................................................................... 102,756 622,206
--------- ------------
NET INVESTMENT INCOME (LOSS).......................................................... 316,897 (301,886)
--------- ------------
NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS (NOTES 1 AND 4):
Realized gain (loss) on:
Security transactions............................................................ 205,453 4,218,963
Forward foreign exchange contracts............................................... (64,208) 489,987
Foreign currency transactions.................................................... (8,964) 76,988
--------- ------------
Net realized gain on investments............................................... 132,281 4,785,938
--------- ------------
Net change in unrealized appreciation (depreciation) on:
Securities....................................................................... (521,817) 8,970,880
Forward foreign exchange contracts............................................... (11,982) 6,713
Currencies and net other assets.................................................. (8,566) 28,256
--------- ------------
Net change in unrealized appreciation (depreciation) of investments............ (542,365) 9,005,849
--------- ------------
NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS................................ (410,084) 13,791,787
--------- ------------
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS....................... $ (93,187) $ 13,489,901
--------- ------------
--------- ------------
</TABLE>
- ------------------
+ Net of foreign withholding taxes of $40,366 for the International Equity Fund.
See Notes to Financial Statements.
21
<PAGE>
JULIUS BAER INVESTMENT FUNDS
JULIUS BAER GLOBAL INCOME FUND
STATEMENTS OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
FOR THE SIX
MONTHS ENDED FOR THE YEAR
APRIL 30, 1999 ENDED
(UNAUDITED) OCTOBER 31, 1998
-------------- ----------------
<S> <C> <C>
INCREASE (DECREASE) IN NET ASSETS FROM OPERATIONS:
Net investment income................................................................... $ 316,897 $ 475,074
Net realized gain on investments........................................................ 132,281 499,745
Net change in unrealized appreciation (depreciation) of investments..................... (542,365) 149,604
------------ ------------
Net increase (decrease) in net assets resulting from operations......................... (93,187) 1,124,423
DISTRIBUTIONS TO SHAREHOLDERS (NOTE 1):
Distributions from net investment income.............................................. (314,239) (564,298)
FUND SHARE TRANSACTIONS:
Net increase from Fund share transactions (Note 5).................................... 1,944,233 2,804,874
------------ ------------
Net increase in net assets............................................................ 1,536,807 3,364,999
NET ASSETS:
Beginning of period..................................................................... 15,254,354 11,889,355
------------ ------------
End of period (including distributions in excess of net investment income of $100,087
and $102,745, respectively)........................................................... $ 16,791,161 $ 15,254,354
------------ ------------
------------ ------------
</TABLE>
See Notes to Financial Statements.
22
<PAGE>
JULIUS BAER INVESTMENT FUNDS
JULIUS BAER INTERNATIONAL EQUITY FUND
STATEMENTS OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
FOR THE SIX
MONTHS ENDED FOR THE YEAR
APRIL 30, 1999 ENDED
(UNAUDITED) OCTOBER 31, 1998
-------------- ----------------
<S> <C> <C>
INCREASE IN NET ASSETS FROM OPERATIONS:
Net investment loss..................................................................... $ (301,886) $ (88,611)
Net realized gain on investments........................................................ 4,785,938 4,953,520
Net change in unrealized appreciation of investments.................................... 9,005,849 2,362,835
------------ ------------
Net increase in net assets resulting from operations.................................... 13,489,901 7,227,744
DISTRIBUTIONS TO SHAREHOLDERS (NOTE 1):
Distributions from net realized gains on investments.................................... (1,455,339) --
Distributions in excess of net investment income........................................ -- (501,882)
FUND SHARE TRANSACTIONS:
Net increase (decrease) from Fund share transactions (Note 5)........................... (1,282,478) 5,690,137
------------ ------------
Net increase in net assets.............................................................. 10,752,084 12,415,999
NET ASSETS:
Beginning of period..................................................................... 56,717,736 44,301,737
------------ ------------
End of period (including distributions in excess of net investment income
of $942,285 and $640,399, respectively)............................................... $ 67,469,820 $ 56,717,736
------------ ------------
------------ ------------
</TABLE>
See Notes to Financial Statements.
23
<PAGE>
JULIUS BAER INVESTMENT FUNDS
JULIUS BAER GLOBAL INCOME FUND
FINANCIAL HIGHLIGHTS
FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD
<TABLE>
<CAPTION>
SIX MONTHS
ENDED YEAR ENDED
APRIL 30, 1999 --------------------------------------
(UNAUDITED) 10/31/98 10/31/97 10/31/96
-------------- -------- -------- --------
<S> <C> <C> <C> <C>
Net Asset Value, beginning of period.............. $ 12.22 $ 11.70 $ 12.01 $ 12.11
-------- -------- -------- --------
Income (Loss) from investment operations:
Net investment income........................... 0.25 (2) 0.48 0.50 0.59
Net realized and unrealized gain (loss) on
investments.................................. (0.32) 0.59 (0.13) 0.36
-------- -------- -------- --------
Total income (loss) from investment
operations................................. (0.07) 1.07 0.37 0.95
-------- -------- -------- --------
Less distributions:
From net investment income...................... (0.24) (0.55) (0.58) (1.05)
From capital (Note 1)........................... -- -- (0.10) --
-------- -------- -------- --------
Total distributions.......................... (0.24) (0.55) (0.68) (1.05)
-------- -------- -------- --------
Net Asset Value, end of period.................... $ 11.91 $ 12.22 $ 11.70 $ 12.01
-------- -------- -------- --------
-------- -------- -------- --------
Total Return (3).................................. (0.58)% 9.43% 3.24% 8.25%
-------- -------- -------- --------
-------- -------- -------- --------
Ratios/Supplemental Data:
Net assets, end of period (in 000's).............. $ 16,791 $ 15,254 $ 11,889 $ 14,584
Ratio of net investment income to average net
assets.......................................... 4.06%+ 3.93% 4.32% 4.71%
Ratio of total expenses to average net assets..... 1.32%+(4)(5) 1.77%(4)(5) 1.99% 2.53%(4)
Portfolio turnover rate........................... 102% 269% 162% 219%
<CAPTION>
YEAR ENDED
-------------------------
10/31/95(1) 10/31/94(1)
----------- -----------
<S> <C> <C>
Net Asset Value, beginning of period............. $ 11.16 $ 12.28
------- -------
Income (Loss) from investment operations:
Net investment income.......................... 0.59 0.39
Net realized and unrealized gain (loss) on
investments................................. 0.92 (0.81)
------- -------
Total income (loss) from investment
operations................................ 1.51 (0.42)
------- -------
Less distributions:
From net investment income..................... (0.56) (0.27)
From capital (Note 1).......................... -- (0.43)
------- -------
Total distributions......................... (0.56) (0.70)
------- -------
Net Asset Value, end of period................... $ 12.11 $ 11.16
------- -------
------- -------
Total Return (3)................................. 13.90% (3.54)%
------- -------
------- -------
Ratios/Supplemental Data:
Net assets, end of period (in 000's)............. $17,327 $28,619
Ratio of net investment income to average net
assets......................................... 5.19% 3.29%
Ratio of total expenses to average net assets.... 2.15%(4) 1.66%
Portfolio turnover rate.......................... 319% 320%
</TABLE>
- ------------------
+ Annualized.
(1) Per share amounts have been calculated using the monthly average share
method, which more appropriately presents the per share data for the period
since the use of the undistributed income method does not accord with
results of operations.
(2) Net investment income before waiver of fees by the investment adviser was
$0.23 for the six months ended April 30, 1999.
(3) Total return represents aggregate total return for the periods indicated and
does not reflect any applicable sales charge.
(4) Includes indirectly paid expenses. Excluding indirectly paid expenses the
ratio of total expenses to average net assets would have been 1.32%, 1.77%,
2.43% and 2.05% for the six months ended April 30, 1999 and the years ended
October 31, 1998, 1996 and 1995, respectively.
(5) Figure is net of the voluntary expense waiver by the Adviser. Excluding this
waiver, the ratio of total expenses to average net assets would have been
1.65% and 1.83% for the six months ended April 30, 1999 and the year ended
October 31, 1998, respectively.
See Notes to Financial Statements.
24
<PAGE>
JULIUS BAER INVESTMENT FUNDS
JULIUS BAER INTERNATIONAL EQUITY FUND
FINANCIAL HIGHLIGHTS
FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD
<TABLE>
<CAPTION>
SIX MONTHS
ENDED YEAR ENDED
APRIL 30, 1999 -------------------------------------------
(UNAUDITED) 10/31/98 10/31/97(1) 10/31/96
-------------- -------- ----------- --------
<S> <C> <C> <C> <C>
Net Asset Value, beginning of period........ $ 15.39 $ 13.41 $ 11.43 $ 10.13
-------- -------- ------- --------
Income from investment operations:
Net investment income (loss).............. (0.09) (0.03)(2) 0.00(2) (0.02)(2)
Net realized and unrealized gain (loss) on
investments............................ 3.70 2.16 2.02 1.32
-------- -------- ------- --------
Total income (loss) from investment
operations........................... 3.61 2.13 2.02 1.30
-------- -------- ------- --------
Less distributions:
From net realized gains on investments...... (0.39) -- -- --
In excess of net investment income.......... -- (0.15) (0.04) --
-------- -------- ------- --------
Net Asset Value, end of period.............. $ 18.61 $ 15.39 $ 13.41 $ 11.43
-------- -------- ------- --------
-------- -------- ------- --------
Total Return(3)............................. 23.65% 16.10% 17.68% 12.73%
-------- -------- ------- --------
-------- -------- ------- --------
Ratios/Supplemental Data:
Net assets, end of period (in 000's)........ $ 67,470 $ 56,718 $44,302 $ 19,161
Ratio of net investment gain (loss) to
average net assets........................ (0.95)%+ (0.15)% 0.00% (0.58)%
Ratio of total expenses to average net
assets.................................... 1.97%+(5) 1.87%(4)(5) 1.79%(4) 2.46%(5)
Portfolio turnover rate..................... 42% 134% 94% 67%
</TABLE>
<TABLE>
<CAPTION>
YEAR ENDED
----------------------------
10/31/95(1) 10/31/94
----------- --------
<S> <C> <C>
Net Asset Value, beginning of period........ $ 11.30 $ 13.10
--------- --------
Income from investment operations:
Net investment income (loss).............. (0.06)(2) (0.21)
Net realized and unrealized gain (loss) on
investments............................ (1.11) (1.56)
--------- --------
Total income (loss) from investment
operations........................... (1.17) (1.77)
--------- --------
Less distributions:
From net realized gains on investments...... -- --
In excess of net investment income.......... -- (0.03)
--------- --------
Net Asset Value, end of period.............. $ 10.13 $ 11.30
--------- --------
--------- --------
Total Return(3)............................. (10.35)% (13.53)%
--------- --------
--------- --------
Ratios/Supplemental Data:
Net assets, end of period (in 000's)........ $ 9,643 $ 14,831
Ratio of net investment gain (loss) to
average net assets........................ (0.63)% (1.26)%
Ratio of total expenses to average net
assets.................................... 2.84%(6)(5) 2.16%
Portfolio turnover rate..................... 116% 169%
</TABLE>
- ------------------
+ Annualized.
(1) Per share amounts have been calculated using the monthly average share
method, which more appropriately presents the per share data for the period
since the use of the undistributed income method does not accord with
results of operations.
(2) Net investment loss before waiver of fees by the investment adviser was
($0.07), ($0.07) ($0.05) and ($0.11) for the years ended October 31, 1998,
1997, 1996 and 1995, respectively.
(3) Total return represents aggregate total return for the periods indicated and
does not reflect any applicable sales charge.
(4) Figure is net of the voluntary expense waiver by the Adviser. Excluding this
waiver, the ratio of total expenses to average net assets would have been
2.09%, 2.29% and 2.96% for the years ended October 31, 1998, 1997 and 1996,
respectively.
(5) Excludes indirectly paid expenses. Including indirectly paid expenses the
ratio of total expenses to average net assets would have been 1.95%, 1.85%,
2.37% and 2.67% for the six months ended April 30, 1999 and the years ended
October 31, 1998, 1996 and 1995, respectively.
(6) Figures are net of the expense reimbursement by the Adviser in connection
with the voluntary and involuntary expense limitation. Before expense
reimbursement the ratio of total expenses to average net assets would have
been 3.36%.
See Notes to Financial Statements.
25
<PAGE>
JULIUS BAER INVESTMENT FUNDS
NOTES TO FINANCIAL STATEMENTS (UNAUDITED)
1. SIGNIFICANT ACCOUNTING POLICIES
Julius Baer Investment Funds (the "Trust") is registered with the
Securities and Exchange Commission under the Investment Company Act of 1940, as
amended (the "1940 Act"), as an open-end management investment company. The
Trust currently offers two investment funds: Julius Baer Global Income Fund (the
"Income Fund") and Julius Baer International Equity Fund (the "Equity Fund")
(individually, a "Fund" and collectively, the "Funds"). The Trust is a
Massachusetts business trust.
The Income Fund's investment objective is to maximize current income
consistent with the protection of principal by investing in a non-diversified
portfolio of fixed income securities of governmental, supranational and
corporate issuers denominated in various currencies, including United States
(U.S.) dollars. The Equity Fund's investment objective is long-term growth of
capital from investing in a diversified portfolio of common stocks of foreign
issuers of all sizes.
The following is a summary of significant accounting policies consistently
followed by the Funds in the preparation of their financial statements. The
presentation of financial statements in conformity with generally accepted
accounting principles requires management to make estimates and assumptions that
affect the reported amounts of assets and liabilities and disclosure of
contingent assets and liabilities at the date of the financial statements and
the reported amounts of revenue and expenses during the reporting period. Actual
results could differ from these estimates.
Portfolio valuation: Generally, each Fund's investments are valued at
market value. A security which is traded primarily on a United States or foreign
stock exchange is valued at the last sale price on that exchange or, if there
were no sales during the day, at the mean of the current quoted bid and asked
prices. Portfolio securities which are traded primarily on foreign securities
exchanges are generally valued at the preceding closing values of such
securities on their respective exchanges, except that when an occurrence
subsequent to the time that a value was so established is likely to have changed
such value, then the fair value of those securities will be determined by
consideration of other factors by or under the direction of the Trust's Board of
Trustees or its delegates. Debt securities (other than government securities and
short-term obligations) are valued by independent pricing services approved by
the Trust's Board of Trustees. Investments in government securities (other than
short-term securities) are valued at the mean of the quoted bid and asked prices
in the over-the-counter market. In the absence of a readily available market
value, fair value is determined by or under the direction of the Trust's Board
of Trustees. Short-term investments that mature in 60 days or less are valued at
amortized cost.
Repurchase agreements: The Funds may engage in repurchase agreement
transactions. Under the terms of a typical repurchase agreement, a Fund takes
possession of an underlying debt obligation, in return for the use of the Funds
available cash, subject to an obligation of the seller to repurchase, and the
Fund to resell, the obligation at an agreed-upon price and time, thereby
determining the yield during the Fund's holding period. This arrangement results
in a fixed rate of return that is not subject to market fluctuations during a
Fund's holding period. The value of the collateral at all times is equal to at
least 100% of the total amount of the repurchase obligations, including accrued
interest. In the event of counterparty default, the Fund has the right to use
the collateral to offset losses incurred. There is potential loss to a Fund in
the event the Fund is delayed or prevented from exercising its rights to dispose
of the collateral securities, including the risk of a possible decline in the
value of the underlying securities during the period while the Fund seeks to
assert its rights. The Funds' investment adviser, acting under the supervision
of the Board of Trustees, reviews the value of the collateral and the
creditworthiness of those banks and dealers with which the Funds enter into
repurchase agreements to evaluate potential risks.
Foreign currency: The books and records of the Funds are maintained in
U.S. dollars. Foreign currencies, investments and other assets and liabilities
are translated into U.S. dollars at the exchange rates prevailing at the end of
the period, purchases and sales of investment securities and income and expenses
are translated on the respective dates of such transactions. Unrealized gains or
losses on investments which result from changes in foreign currencies have been
included in the net unrealized appreciation (depreciation) of investments. Net
realized currency gains and losses include foreign currency gains and losses
between trade date and settlement date on investment securities transactions,
gains and losses from foreign currency transactions and the gains and losses
from differences between the amounts of interest and dividends recorded on the
books of the Funds and the amounts actually received. The portion of foreign
currency gains and losses related to fluctuations in exchange rates between the
purchase trade date and sale trade date is included in realized gains and losses
on security transactions.
26
<PAGE>
JULIUS BAER INVESTMENT FUNDS
NOTES TO FINANCIAL STATEMENTS (UNAUDITED)--(CONTINUED)
Forward foreign currency contracts: Forward foreign currency contracts are
valued at the forward rate and are marked-to-market daily. The change in market
value is recorded by a Fund as an unrealized gain or loss. When the contract is
closed, a Fund records a realized gain or loss equal to the difference between
the value of the contract at the time it was opened and the value at the time it
was closed.
The use of forward foreign currency contracts does not eliminate
fluctuations in the underlying prices of a Fund's portfolio securities, but it
does establish a rate of exchange that can be achieved in the future. Although
forward foreign currency contracts limit the risk of loss due to a decline in
the value of the currency holdings, they also limit any potential gain that
might result should the value of the currency increase. In addition, a Fund
could be exposed to risks if the counterparties to the contracts are unable to
meet the terms of their contracts.
Option contracts: Purchase of put and call options are recorded as an
investment, the value of which is marked-to-market daily. When a purchased
option expires, a Fund will realize a loss equal to the premium paid. When a
Fund enters into a closing sale transaction, the Fund will realize a gain or
loss depending on whether the sales proceeds from the closing sale transaction
are greater or less than the premium paid. When a Fund exercises a put option,
it will realize a gain or loss from the sale of the underlying security and the
proceeds from such sale will be decreased by the premium originally paid. When a
Fund exercises a call option, the cost of the security which the Fund purchases
upon exercise will be increased by the premium originally paid.
When a Fund writes a call option or a put option, an amount equal to the
premium received by a Fund is recorded as a liability, the value of which is
marked-to-market daily. When a written option expires, a Fund realizes a gain
equal to the amount of the premium received. When a Fund enters into a closing
purchase transaction the Fund realizes a gain (or loss if the cost of the
closing purchase transaction exceeds the premium received when the option was
sold) without regard to any unrealized gain or loss on the underlying security,
and the liability related to such option is eliminated. When a call option is
exercised, a Fund realizes a gain or loss from the sale of the underlying
security and the proceeds from such sale are increased by the premium originally
received. When a put option is exercised, the amount of the premium originally
received will reduce the cost of the security which a Fund purchased upon
exercise.
Unlike options on specific securities, all settlements of options on stock
indices are in cash and gains or losses depend on general movements in the
stocks included in the index rather than price movements on a particular stock.
There is no physical delivery of securities.
The risk associated with purchasing options is limited to the premium
originally paid. The risk in writing a call option is that a Fund may forego the
opportunity of profit if the market price of the underlying security increases
and the option is exercised. The risk in writing a put option is that a Fund may
incur a loss if the market price of the underlying security decreases and the
option is exercised. There is also the risk that a Fund may not be able to enter
into a closing transaction because of an illiquid secondary market. In addition,
the Fund could be exposed to risks if the counterparties to the transactions are
unable to meet the terms of the contracts.
Securities transactions and investment income: Securities transactions are
recorded as of the trade date. Realized gains and losses from securities
transactions are recorded on the identified cost basis. Interest income is
recorded on the accrual basis. Dividend income is recorded on the ex-dividend
date. It is expected that certain capital gains earned by the Funds and certain
dividends and interest received by the Funds will be subject to foreign
withholding taxes.
Dividends and distributions to shareholders: Distributions to shareholders
are recorded on the ex-dividend date. Each Fund intends to distribute annually
to its shareholders substantially all of its taxable income. The Income Fund
declares and pays monthly dividends. The Equity Fund declares and pays dividends
from its net investment income, if any, annually. Both Funds will distribute net
realized capital gains, if any, annually. Additional distributions of net
investment income and capital gains may be made at the discretion of the Board
of Trustees to avoid the application of the excise tax imposed under
Section 4982 of the Internal Revenue Code of 1986, as amended, for certain
undistributed amounts. Income distributions and capital gain distributions are
determined in accordance with income tax regulations which may differ from
generally accepted accounting principles. These differences are primarily due to
differing treatments of income and gains on various investment securities held
by the Funds, timing differences and differing characterization of distributions
made by the Funds as a whole.
27
<PAGE>
JULIUS BAER INVESTMENT FUNDS
NOTES TO FINANCIAL STATEMENTS (UNAUDITED)--(CONTINUED)
Federal income taxes: The Trust intends that each Fund separately qualify
as a regulated investment company for U.S. federal income tax purposes.
Accordingly, the Funds do not anticipate that any income taxes will be paid.
2. INVESTMENT ADVISORY FEE AND OTHER TRANSACTIONS
Bank Julius Baer & Co., Ltd., New York Branch ("Bank Julius Baer") serves
as the investment adviser. The Income Fund pays Bank Julius Baer a quarterly fee
calculated at an annual rate of 0.65% of the Income Fund's average daily net
assets. The adviser has voluntarily agreed to waive half of its advisory fee on
the first $25 million of average daily net assets. If the average daily net
assets of the Income Fund exceed $25 million the advisory fee would be
calculated at 0.325% of net assets up to $25 million and at 0.65% of net assets
exceeding $25 million. The waiver can be terminated at any time. The Equity Fund
pays Bank Julius Baer a quarterly fee calculated at an annual rate of 1.00% of
average daily net assets.
No director, officer or employee of Bank Julius Baer or any of its
affiliates receives any compensation from the Trust for serving as an officer or
Trustee of the Funds.
For the six months ended April 30, 1999, the Equity Fund incurred total
brokerage commissions of $143,055, of which $14,078 was paid to affiliates of
the adviser.
3. DISTRIBUTION AND SHAREHOLDER SERVICING PLAN
The Trust has adopted a Shareholder Services Plan and a Distribution Plan
(the "Plans") pursuant to Rule 12b-1 of the 1940 Act. Under the Plans, the Funds
may compensate certain financial institutions, including the Funds' distributor,
for certain distribution, shareholder servicing, administrative and accounting
services for their clients and customers who are beneficial owners of each of
the Funds' shares. A Fund may expend an aggregate amount, on an annual basis,
not to exceed 0.25% of the value of the average daily net assets of the Fund.
The advisor and the administrator may pay additional marketing costs out of
their profits.
Under their terms, the Plans shall remain in effect from year to year,
provided such continuance is approved annually by a vote of a majority of the
Trustees and a majority of those Trustees who are not "interested persons" of
the Trust and who have no direct or indirect financial interest in the operation
of the Plans or in any agreement related to the Plans.
Effective December 9, 1998, the Board of Trustees voted to approve a new
Distribution Agreement between the Trust and Unified Management Corporation
("UMC"), designating UMC as the Funds' distributor.
4. PURCHASES AND SALES OF SECURITIES
Cost of purchases and proceeds from sales of securities, excluding U.S.
government securities and short-term investments, during the six months ended
April 30, 1999, were as follows:
<TABLE>
<CAPTION>
COST OF PROCEEDS
PURCHASES FROM SALES
----------- -----------
<S> <C> <C>
Income Fund................................................................................. $ 7,783,664 $ 3,797,896
Equity Fund................................................................................. 35,602,815 26,283,706
</TABLE>
Cost of purchases and proceeds from sales of long-term U.S. government
securities during the six months ended April 30, 1999, were $7,211,664 and
$10,797,896, respectively for the Income Fund.
At April 30, 1999, aggregate gross unrealized appreciation for all
securities in which there was an excess of value over tax cost, and aggregate
gross unrealized depreciation for all securities in which there was an excess of
tax cost over value was:
<TABLE>
<CAPTION>
UNREALIZED UNREALIZED
APPRECIATION DEPRECIATION
------------ ------------
<S> <C> <C>
Income Fund................................................................................. $ 35,494 $ 170,619
Equity Fund................................................................................. 16,935,756 988,932
</TABLE>
28
<PAGE>
JULIUS BAER INVESTMENT FUNDS
NOTES TO FINANCIAL STATEMENTS (UNAUDITED)--(CONTINUED)
5. SHARES OF BENEFICIAL INTEREST
The Trust may issue an unlimited number of shares of beneficial interest of
each Fund, with a par value of $.001 per share. Changes in outstanding shares of
beneficial interest on the Income Fund and the Equity Fund were as follows:
<TABLE>
<CAPTION>
SIX MONTHS ENDED 4/30/99 YEAR ENDED 10/31/98
-------------------------- --------------------------
SHARES AMOUNT SHARES AMOUNT
---------- ------------ ---------- ------------
<S> <C> <C> <C> <C>
INCOME FUND:
Sold.............................................................. 295,036 $ 3,559,482 503,318 $ 5,984,704
Issued as reinvestment of dividends............................... 21,361 257,156 38,218 450,479
Redeemed.......................................................... (154,904) (1,872,405) (309,148) (3,630,309)
---------- ------------ ---------- ------------
---------- ------------ ---------- ------------
Net increase...................................................... 161,493 $ 1,944,233 232,388 $ 2,804,874
---------- ------------ ---------- ------------
---------- ------------ ---------- ------------
<CAPTION>
SHARES AMOUNT SHARES AMOUNT
---------- ------------ ---------- ------------
<S> <C> <C> <C> <C>
EQUITY FUND:
Sold.............................................................. 925,057 $ 16,287,404 1,863,767 $ 29,548,855
Issued as reinvestment of dividends............................... 59,878 1,019,125 36,110 497,235
Redeemed.......................................................... (1,044,570) (18,589,007) (1,517,046) (24,355,953)
---------- ------------ ---------- ------------
Net increase (decrease)........................................... (59,635) $ (1,282,478) 382,831 $ 5,690,137
---------- ------------ ---------- ------------
---------- ------------ ---------- ------------
</TABLE>
6. FOREIGN SECURITIES
Investing in securities of foreign companies and foreign governments
involves special risks and considerations not typically associated with
investing in U.S. companies and the United States government. These risks
include revaluation of currencies and future adverse political and economic
developments. Moreover, securities of many foreign companies and foreign
governments and their markets may be less liquid and their prices more volatile
than those of securities of comparable U.S. companies and the United States
government.
7. YEAR 2000
Like other funds and business organizations around the world, the Funds
could be adversely affected if the computer systems used by the Adviser and the
Funds' other service providers do not properly process and calculate
date-related information for the year 2000 and beyond. The Funds have been
informed that the Adviser, and the Funds' other service providers (i.e.,
Administrator, Transfer Agent, Fund Accounting Agent, Distributor and Custodian)
have developed and are implementing clearly defined and documented plans to
minimize the risk associated with the Year 2000 problem. These plans include the
following activities: inventorying of software systems, determining inventory
items that may not function properly after December 31, 1999, reprogramming or
replacing such systems and retesting for Year 2000 readiness. In addition, the
service providers are obtaining assurances from their vendors and suppliers in
the same manner. Non-compliant Year 2000 systems upon which the Funds are
dependent may result in errors and account maintenance failures. The Funds have
no reason to believe that (1) the Year 2000 plans of the Adviser and the Funds'
other service providers will not be completed by December, 1999, and (2) the
costs currently associated with the implementation of their plans will have a
material adverse impact on the business, operations or financial condition of
the Funds or their service providers.
In addition, the Year 2000 problem may adversely affect the companies in
which the Funds invest. For example, these companies may incur substantial costs
to correct the problem and may suffer losses caused by data processing errors.
Since the ultimate costs or consequences of incomplete or untimely resolution of
the Year 2000 problem by the Funds' service providers are unknown to the Funds
at this time, no assurance can be made that such costs or consequences will not
have a material adverse impact on the Funds or their service providers.
The Funds and the Adviser will continue to monitor developments relating to
the Year 2000 problem, including the development of contingency plans for
providing back-up computer services in the event of a systems failure.
29
<PAGE>
SEMI-ANNUAL REPORT
[LOGO]
JULIUS [LOGO] BAER
INVESTMENT FUNDS
Julius Baer
International
Equity
Fund
Julius Baer
Global
Income
Fund
[LOGO] April 30, 1999
[LOGO]
This report is sent to the shareholders
of the Julius Baer Investment Funds for their information.
It is not a Prospectus, circular or representation intended [LOGO]
for use in the purchase or sale of shares of the Funds or of
any securities mentioned in the report.
