<PAGE> 1
INTERNATIONAL EQUITY PORTFOLIO 10
-----------------------------------------------------
<TABLE>
<CAPTION>
Statement of Assets and Liabilities
===================================================================================
September 30, 1995
- -----------------------------------------------------------------------------------
<S> <C>
Assets
- -----------------------------------------------------------------------------------
Investments, at Value (Cost $71,735,744) $83,600,608
- -----------------------------------------------------------------------------------
Foreign Cash (Cost $2,034,278) 2,038,951
- -----------------------------------------------------------------------------------
Cash 11,260
- -----------------------------------------------------------------------------------
Receivable for Securities Sold 249,375
- -----------------------------------------------------------------------------------
Dividends and Interest Receivable 160,726
- -----------------------------------------------------------------------------------
Receivable for Foreign Taxes Withheld 122,825
- -----------------------------------------------------------------------------------
Prepaid Expenses 189
- -----------------------------------------------------------------------------------
Total Assets 86,183,934
- -----------------------------------------------------------------------------------
Liabilities
- -----------------------------------------------------------------------------------
Due to Bankers Trust 26,019
- -----------------------------------------------------------------------------------
Payable for Securities Purchased 2,722,547
- -----------------------------------------------------------------------------------
Accrued Expenses and Accounts Payable 28,009
- -----------------------------------------------------------------------------------
Net Unrealized Depreciation on Forward Foreign Currency Contracts 93,928
- -----------------------------------------------------------------------------------
Total Liabilities 2,870,503
- -----------------------------------------------------------------------------------
Net Assets $83,313,431
===================================================================================
Composition of Net Assets
- -----------------------------------------------------------------------------------
Paid-in Capital $71,546,123
- -----------------------------------------------------------------------------------
Net Unrealized Appreciation on Securities 11,864,864
- -----------------------------------------------------------------------------------
Net Unrealized (Depreciation) on Forward Foreign Currency
Contracts (93,928)
- -----------------------------------------------------------------------------------
Net Unrealized (Depreciation) on Foreign Currency Translation (3,628)
- -----------------------------------------------------------------------------------
Net Assets, September 30, 1995 $83,313,431
===================================================================================
</TABLE>
See Notes to Financial Statements on Pages 19 and 20
<PAGE> 2
INTERNATIONAL EQUITY PORTFOLIO 11
-----------------------------------------------------
<TABLE>
<CAPTION>
Statement of Operations
==========================================================================================
For the period January 1, 1995 to September 30, 1995
- ------------------------------------------------------------------------------------------
<S> <C> <C>
Investment Income
- ------------------------------------------------------------------------------------------
Dividends (net of foreign withholding tax of $176,431) $ 1,362,870
- ------------------------------------------------------------------------------------------
Interest 148,428
- ------------------------------------------------------------------------------------------
Total Investment Income $ 1,511,298
- ------------------------------------------------------------------------------------------
Expenses
- ------------------------------------------------------------------------------------------
Advisory Fee 322,696
- ------------------------------------------------------------------------------------------
Administration and Services Fee 74,468
- ------------------------------------------------------------------------------------------
Professional Fees 27,151
- ------------------------------------------------------------------------------------------
Transfer Tax 3,077
- ------------------------------------------------------------------------------------------
Trustees Fees 1,079
- ------------------------------------------------------------------------------------------
Insurance 1,987
- ------------------------------------------------------------------------------------------
Miscellaneous 981
- ------------------------------------------------------------------------------------------
Total Expenses 431,439
- ------------------------------------------------------------------------------------------
Less: Expenses Absorbed by Bankers Trust (108,743) 322,696
- ------------------------------------------------------------------------------------------
Net Investment Income 1,188,602
- ------------------------------------------------------------------------------------------
Net Realized and Unrealized Gain (Loss) on Securities and Foreign
Currency
- ------------------------------------------------------------------------------------------
Net Realized Gain from Securities Transactions 1,181,082
- ------------------------------------------------------------------------------------------
Net Realized Gain from Foreign Currency Transactions 775,042
- ------------------------------------------------------------------------------------------
Net Unrealized Appreciation on Securities 6,964,969
- ------------------------------------------------------------------------------------------
Net Unrealized Appreciation on Forward Foreign Currency
Contracts 3,996
- ------------------------------------------------------------------------------------------
Net Unrealized (Depreciation) on Foreign Currency Translation (13,494)
- ------------------------------------------------------------------------------------------
Net Realized and Unrealized Gain on Securities and Foreign Currency 8,911,595
- ------------------------------------------------------------------------------------------
Net Increase in Net Assets from Operations $10,100,197
==========================================================================================
</TABLE>
See Notes to Financial Statements on Pages 19 and 20
<PAGE> 3
INTERNATIONAL EQUITY PORTFOLIO 12
-----------------------------------------------------
<TABLE>
<CAPTION>
Statement of Changes in Net Assets
=====================================================================================
For the
For the period year ended
January 1, 1995 to December
September 30, 1995 31, 1994
=======================================================================================
<S> <C> <C>
Increase (Decrease) in Net Assets
- ---------------------------------------------------------------------------------------
From Operations
- ---------------------------------------------------------------------------------------
Net Investment Income $ 1,188,602 $ 839,522
- ---------------------------------------------------------------------------------------
Net Realized Gain from Securities and
Foreign Currency Transactions 1,956,124 1,178,394
- ---------------------------------------------------------------------------------------
Net Unrealized Appreciation (Depreciation) on
Securities and Foreign Currency 6,955,471 (402,629)
=======================================================================================
Net Increase in Net Assets from Operations 10,100,197 1,615,287
=======================================================================================
From Capital Transactions
- ---------------------------------------------------------------------------------------
Proceeds from Capital Invested 35,819,720 26,018,869
- ---------------------------------------------------------------------------------------
Value of Capital Withdrawn (18,648,629) (5,499,175)
=======================================================================================
Net Increase in Net Assets from Capital Transactions 17,171,091 20,519,694
=======================================================================================
Total Increase in Net Assets 27,271,288 22,134,981
=======================================================================================
Net Assets
- ---------------------------------------------------------------------------------------
Beginning of Period 56,042,143 33,907,162
- ---------------------------------------------------------------------------------------
End of Period $ 83,313,431 $56,042,143
=======================================================================================
</TABLE>
See Notes to Financial Statements on Pages 19 and 20
<PAGE> 4
INTERNATIONAL EQUITY PORTFOLIO 13
-----------------------------------------------------
Financial Highlights
================================================================================
Contained below are selected ratios and supplemental data for each of the
periods indicated for the International Equity Portfolio.
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
For the period
For the year ended August 4, 1992
For the period December 31, (Commencement
January 1, 1995 to ------------------- of Operations) to
September 30, 1995 1994 1993 December 31, 1992
- -------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Ratios and Supplemental Data
Ratio of Net Investment Income to Average Net Assets 2.39%* 1.69% 1.64% 1.87%*
Ratio of Expenses to Average Net Assets 0.65%* 0.65% 0.65% 0.60%*
Decrease Reflected in Above Ratio of Expenses to Average
Net Assets Due to Absorption of Expenses by Bankers Trust 0.22%* 0.24% 0.39% 0.93%*
Portfolio Turnover Rate 21% 15% 17% 7%
Net Assets, End of Period (000's omitted) $83,313 $56,042 $33,907 $8,225
</TABLE>
* Annualized
See Notes to Financial Statements on Pages 19 and 20
<PAGE> 5
INTERNATIONAL EQUITY PORTFOLIO 14
-----------------------------------------------------
Schedule of Portfolio Investments
================================================================================
September 30, 1995
<TABLE>
<CAPTION>
Shares Description Value
================================================================================
<C> <S> <C>
COMMON STOCKS - 95.36%
- --------------------------------------------------------------------------------
Australia - 5.45%
- --------------------------------------------------------------------------------
601,400 Burns Philip & Company
(Consumer Goods) $ 1,273,380
- --------------------------------------------------------------------------------
239,400 National Australia Bank (Finance) 2,118,101
- --------------------------------------------------------------------------------
206,500 News Corp. (Consumer Services) 1,149,303
- --------------------------------------------------------------------------------
4,540,784
================================================================================
Austria - 2.18%
- --------------------------------------------------------------------------------
28,600 Mayr-Melnhof Karton (Materials) 1,818,900
================================================================================
Canada - 2.49%
- --------------------------------------------------------------------------------
86,100 TELUS (Utilities) 1,050,783
- --------------------------------------------------------------------------------
38,800 Westcoast Energy (Utilities) 574,734
- --------------------------------------------------------------------------------
30,300 Westcoast Energy, ADR (Utilities) 450,713
- --------------------------------------------------------------------------------
2,076,230
================================================================================
Denmark - 1.75%
- --------------------------------------------------------------------------------
28,200 Tele Danmark, Cl.B (Utilities) 1,457,568
================================================================================
Finland - 3.22%
- --------------------------------------------------------------------------------
87,000 Kymmene (Materials) 2,686,284
================================================================================
France - 9.08%
- --------------------------------------------------------------------------------
7,000 Chargeurs (Consumer Services) 1,449,084
- --------------------------------------------------------------------------------
15,300 Club Mediterranee
(Consumer Services)(a) 1,481,171
- --------------------------------------------------------------------------------
15,400 Lyonnaise des Eaux-Dumez
(Diversified) 1,409,589
- --------------------------------------------------------------------------------
3,680 Taittinger (Consumer Goods) 1,605,764
- --------------------------------------------------------------------------------
26,800 Total Petroleum, Cl.B (Energy) 1,620,864
- --------------------------------------------------------------------------------
7,566,472
================================================================================
Germany - 6.10%
- --------------------------------------------------------------------------------
6,600 Bayer (Materials) 1,685,332
- --------------------------------------------------------------------------------
6,500 Berliner Kraft & Licht (Utilities) 1,546,536
- --------------------------------------------------------------------------------
5,700 Volkswagen (Consumer Goods) 1,846,816
- --------------------------------------------------------------------------------
5,078,684
================================================================================
Hong Kong - 4.31%
- --------------------------------------------------------------------------------
500,000 First Pacific (Emerging Markets)(b) 533,497
- --------------------------------------------------------------------------------
208,000 Guoco Group (Emerging Markets) 1,041,076
- --------------------------------------------------------------------------------
372,000 Hutchison Whampoa (Diversified) 2,015,882
- --------------------------------------------------------------------------------
3,590,455
================================================================================
Indonesia - 1.48%
- --------------------------------------------------------------------------------
67,500 Hanjaya Mandala Sampoerna
(Emerging Markets) 628,669
- --------------------------------------------------------------------------------
112,000 Indofood Sukses Makmur
(Emerging Markets) 540,102
- --------------------------------------------------------------------------------
100,000 SMART (Emerging Markets) $ 65,107
- --------------------------------------------------------------------------------
1,233,878
================================================================================
Ireland - 3.29%
- --------------------------------------------------------------------------------
150,000 CRH (Consumer Goods) 1,028,412
- --------------------------------------------------------------------------------
480,000 Irish Life (Consumer Services) 1,715,314
- --------------------------------------------------------------------------------
2,743,726
================================================================================
Italy - 3.51%
- --------------------------------------------------------------------------------
1,220,000 Credito Italiano (Finance) 1,445,115
- --------------------------------------------------------------------------------
486,700 Societa Finanziaria Telefonica
(Utilities) 1,476,675
- --------------------------------------------------------------------------------
2,921,790
================================================================================
Japan - 10.44%
- --------------------------------------------------------------------------------
184,000 Hitachi (Capital Equipment) 1,997,186
- --------------------------------------------------------------------------------
58,000 Jusco (Consumer Services) 1,381,508
- --------------------------------------------------------------------------------
25,000 Kyocera (Capital Equipment) 2,045,226
- --------------------------------------------------------------------------------
63,000 Sankyo (Consumer Goods) 1,430,955
- --------------------------------------------------------------------------------
253,000 Toshiba (Capital Equipment) 1,843,467
- --------------------------------------------------------------------------------
8,698,342
================================================================================
Latin America - 0.51%
- --------------------------------------------------------------------------------
31,500 Latin American Equity Fund
(Emerging Markets) 425,250
- --------------------------------------------------------------------------------
Malaysia - 0.89%
- --------------------------------------------------------------------------------
69,000 Oyl Industries Berhad (Emerging
Markets) 570,883
- --------------------------------------------------------------------------------
50,000 Petronas Gas Berhad (Emerging
Markets)(a)(b) 174,026
- --------------------------------------------------------------------------------
744,909
================================================================================
Netherlands - 12.53%
- --------------------------------------------------------------------------------
13,700 Akzo Nobel (Materials) 1,645,062
- --------------------------------------------------------------------------------
38,900 Internationale Nederlanden
Group (Finance) 2,258,913
- --------------------------------------------------------------------------------
57,200 KLM Royal Dutch Airlines
(Transportation) 2,005,826
- --------------------------------------------------------------------------------
60,300 Philips Electronics (Consumer
Goods) 2,939,992
- --------------------------------------------------------------------------------
12,900 Royal Dutch Petroleum (Energy) 1,585,286
- --------------------------------------------------------------------------------
10,435,079
================================================================================
Norway - 2.04%
- --------------------------------------------------------------------------------
39,600 Norsk Hydro (Energy) 1,699,260
- --------------------------------------------------------------------------------
Singapore - 1.08%
- --------------------------------------------------------------------------------
133,000 Jardine Matheson Holdings
(Diversified) 897,750
- --------------------------------------------------------------------------------
</TABLE>
See Notes to Financial Statements on Pages 19 and 20
<PAGE> 6
INTERNATIONAL EQUITY PORTFOLIO 15
-----------------------------------------------------
Schedule of Portfolio Investments
================================================================================
September 30, 1995
<TABLE>
<CAPTION>
Shares Description Value
================================================================================
<C> <S> <C>
Spain - 5.75%
88,990 Autopistas Concesionaria
Espanola S.A.
(Consumer Services) $ 872,274
- --------------------------------------------------------------------------------
9,635 Banco Popular Espanol (Finance) 1,500,140
- --------------------------------------------------------------------------------
14,324 Fomento de Construcciones
y Contratas (Diversified) 1,205,609
- --------------------------------------------------------------------------------
160,100 Iberdrola S.A. (Utilities) 1,211,336
- --------------------------------------------------------------------------------
4,789,359
================================================================================
Sweden - 3.38%
- --------------------------------------------------------------------------------
54,100 Astra, Series A (Consumer Goods) 1,935,230
- --------------------------------------------------------------------------------
29,400 Svelada Industri
(Capital Equipment) 884,510
- --------------------------------------------------------------------------------
2,819,740
================================================================================
Switzerland - 4.55%
- --------------------------------------------------------------------------------
780 Baloise Holdings Ltd. (Finance) 1,714,582
- --------------------------------------------------------------------------------
1,791 BBC Brown Boveri & Cie, Cl.A
(Capital Equipment) 2,075,421
- --------------------------------------------------------------------------------
3,790,003
================================================================================
Taiwan - 0.45%
- --------------------------------------------------------------------------------
29,120 Yageo, GDR
(Emerging Markets)(a) 371,280
- --------------------------------------------------------------------------------
Thailand - 0.69%
- --------------------------------------------------------------------------------
59,000 PTT Exploration & Production
(Emerging Markets)(a) 573,660
================================================================================
United Kingdom - 8.97%
- --------------------------------------------------------------------------------
441,000 Iceland Group (Consumer Services) 1,227,497
- --------------------------------------------------------------------------------
560,700 Lonrho (Diversified) 1,476,434
- --------------------------------------------------------------------------------
110,100 Manweb (Utilities) 1,737,749
- --------------------------------------------------------------------------------
141,000 National Power (Partially Paid)
(Utilities) 503,961
- --------------------------------------------------------------------------------
131,500 Powergen (Installment Shares)
(Utilities) 517,838
- --------------------------------------------------------------------------------
427,100 Storehouse (Consumer Services) 2,012,867
- --------------------------------------------------------------------------------
7,476,346
================================================================================
Venezuela - 1.22%
- --------------------------------------------------------------------------------
730,198 Electricidad de Caracas
(Emerging Markets) 649,409
- --------------------------------------------------------------------------------
103,935 Mavesa, ADR (Emerging
Markets)(b) 367,285
- --------------------------------------------------------------------------------
1,016,694
================================================================================
Total Common Stocks
(Cost $67,648,342) $ 79,452,443
================================================================================
PREFERRED STOCK - 0.49%
- --------------------------------------------------------------------------------
Australia - 0.49%
- --------------------------------------------------------------------------------
82,050 News Corp. (Consumer Services)
(Cost $331,591) $ 407,022
================================================================================
Principal
Amount
================================================================================
CORPORATE DEBT
NON-CONVERTIBLE - 1.32%
- --------------------------------------------------------------------------------
South Africa - 1.32%
$1,000,000 Liberty Life International,
6.50%, 9/30/04
(Emerging Markets)
(Cost $1,114,559) $ 1,100,000
================================================================================
U.S. TREASURY BILL - 3.17%
$2,670,000 5.28%, 12/14/95
(Cost $2,641,252) $ 2,641,143
================================================================================
Total Investments
(Cost $71,735,744) 100.34% $83,600,608
- --------------------------------------------------------------------------------
Liabilities in Excess
of Other Assets (0.34) (287,177)
================================================================================
Net Assets 100.00% $83,313,431
================================================================================
</TABLE>
(a) Non-Income Producing Security
(b) Security exempt from registration under Rule 144A of the Securities Act of
1933. This security may be resold in transactions exempt from registration,
normally to qualified institutional buyers. At the period end, the value of
this security amounted to $1,074,808 or 1.29% of net assets.
Industry Diversification (as a percentage of Total Investments):
<TABLE>
<CAPTION>
<S> <C>
Capital Equipment................................................. 10.58%
Consumer Goods.................................................... 14.42
Consumer Services................................................. 13.99
Diversified....................................................... 8.38
Emerging Markets.................................................. 8.42
Energy............................................................ 5.87
Finance........................................................... 10.81
Materials......................................................... 9.37
Transportation.................................................... 2.40
Utilities......................................................... 12.59
U.S. Government Treasury Bill..................................... 3.17
------
100.00%
======
</TABLE>
See Notes to Financial Statements on Pages 19 and 20
<PAGE> 7
INTERNATIONAL EQUITY PORTFOLIO 19
-----------------------------------------------------
Notes To Financial Statements
================================================================================
Note 1 -- Organization and Significant Accounting Policies
A. Organization
The International Equity Portfolio (the "Portfolio") is registered under the
Investment Company Act of 1940 (the "Act"), as amended, as an open-end
management investment company. The Portfolio was organized on December 11, 1991
as an unincorporated trust under the laws of New York and commenced operations
on August 4, 1992. The Declaration of Trust permits the Board of Trustees (the
"Trustees") to issue beneficial interests in the Portfolio.
In fiscal 1995, the Portfolio changed its year end to September 30th.
B. Security Valuation
The Portfolio's investments are valued each business day by an independent
pricing service (the "Service") approved by the Trustees. Securities traded
primarily on a principal securities exchange (domestic or foreign) are valued
at their last reported sale price on that exchange. If no sale is reported, or
if local custom or regulation so provides, the mean of the latest bid and asked
price is used. Securities traded over-the-counter are valued using either the
mean between the bid and asked price or, where local custom or regulations so
provide, the last sales price. Short-term obligations with remaining maturities
of 60 days or less are valued at amortized cost which with accrued interest
approximates value. Securities for which quotations are not available are
stated at fair value as determined by the Trustees.
C. Foreign Currency Transactions
The books and records of the Portfolio are maintained in U.S. dollars. All
assets and liabilities initially expressed in foreign currencies are converted
into U.S. dollars at prevailing exchange rates. Purchases and sales of
investment securities, dividend and interest income, and certain expenses are
translated at the rates of exchange prevailing on the respective dates of such
transactions. The Portfolio does not isolate that portion of the results of
operations resulting from changes in foreign exchange rates on investments from
the fluctuations arising from changes in market prices of securities held. Such
fluctuations are included with the net realized and unrealized gain or loss
from securities.
D. Forward Foreign Currency Contracts
The Portfolio may enter into forward foreign currency contracts for the
purpose of settling specific purchases or sales of securities denominated in a
foreign currency or with respect to the Portfolio's investments generally. The
net U.S. dollar value of foreign currency underlying all contractual
commitments held by the Portfolio and the resulting unrealized appreciation or
depreciation are determined using prevailing exchange rates. With respect to
forward foreign currency contracts, losses in excess of amounts recognized in
the Statement of Assets and Liabilities may arise due to changes in the value
of the foreign currency or if the counterparty does not perform under the
contract.
E. Security Transactions and Investment Income
Security transactions are accounted for on a trade date basis (date the
order to buy or sell is executed). Dividend income, less foreign taxes withheld
(if any), is recorded on the ex-dividend date or upon receipt of ex-dividend
notification in the case of certain foreign securities. Interest income is
recorded on the accrual basis and includes amortization of premium and discount
on investments. Realized gains and losses from security transactions are
recorded on the identified cost basis.
All of the net investment income and realized and unrealized gains and
losses from security and foreign currency transactions of the Portfolio are
allocated pro rata among the investors of the Portfolio at the time of such
determination.
<PAGE> 8
INTERNATIONAL EQUITY PORTFOLIO 20
-----------------------------------------------------
Notes To Financial Statements
================================================================================
F. Federal Income Taxes
It is the Portfolio's policy to comply with the requirements of the Internal
Revenue Code applicable to it. Therefore, no federal income tax provision is
required.
Note 2 -- Fees and Transactions with Affiliates
The Portfolio has entered into an Administration and Services Agreement with
Bankers Trust Company ("Bankers Trust"). Under this Administration and Services
Agreement, Bankers Trust provides administrative, custody, transfer agency and
shareholder services to the Portfolio in return for a fee computed daily and
paid monthly at an annual rate of 0.15 of 1% of the Portfolio's average daily
net assets. For the period January 1, 1995 to September 30, 1995, this fee
aggregated $74,468.
The Portfolio has entered into an Advisory Agreement with Bankers Trust.
Under this Advisory Agreement, the Portfolio pays Bankers Trust an advisory fee
computed daily and paid monthly at an annual rate of 0.65 of 1% of the
Portfolio's average daily net assets. For the period January 1, 1995 to
September 30, 1995, this fee aggregated $322,696.
Bankers Trust has voluntarily undertaken to waive and reimburse expenses of
the Portfolio, to the extent necessary, to limit all expenses to 0.65 of 1% of
the average daily net assets of the Portfolio. For the period January 1, 1995
to September 30, 1995, expenses of the Portfolio have been reduced $108,743.
Certain trustees and officers of the Portfolio are also directors, officers
and/or employees of Signature. None of the trustees so affiliated received
compensation for services as trustee of the Portfolio. Similarly, none of the
Portfolio's officers received compensation from the Portfolio.
Note 3 -- Purchases and Sales of Investment Securities
The aggregate cost of purchases and proceeds from sales of investments,
other than short-term obligations, for the period January 1, 1995 to September
30, 1995, were $31,676,113 and $13,580,726, respectively. For federal income
tax purposes, the tax basis of investments held at September 30, 1995 was
$71,735,953. The aggregate gross unrealized appreciation for all investments
was $13,556,024 and the aggregate gross unrealized depreciation for all
investments was $1,691,369.
Note 4 -- Open Forward Foreign Currency Contracts
As of September 30, 1995, the Portfolio had entered into the following open
forward foreign currency contract:
<TABLE>
<CAPTION>
Contracts In Settle- Net Unrealized
to Exchange ment Value (Depreciation)
Deliver For Date (US $) (US $)
- --------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Sales
- --------------------------------------------------------------------------------------------
JPY 336,000,000 USD 3,289,280 10/18/95 3,383,208 (93,928)
============================================================================================
</TABLE>
<PAGE> 9
INTERNATIONAL EQUITY PORTFOLIO 21
-----------------------------------------------------
Report of Independent Accountants
================================================================================
To the Trustees and Holders of Beneficial Interest
of the International Equity Portfolio:
We have audited the accompanying statement of assets and liabilities of the
International Equity Portfolio, including the Schedule of Portfolio of
Investments, as of September 30, 1995, and the related statement of operations
for the nine months then ended, the statements of changes in net assets for the
nine months ended September 30, 1995, and the year ended December 31, 1994, and
the financial highlights for the nine months ended September 30, 1995, for each
of the two years in the period ended December 31, 1994 and for the period
August 4, 1992 (commencement of operations) to December 31, 1992. These
financial statements and financial highlights are the responsibility of the
Portfolio's management. Our responsibility is to express an opinion on these
financial statements and financial highlights based on our audits.
We conducted our audits in accordance with generally accepted auditing
standards. Those standards require that we plan and perform the audit to obtain
reasonable assurance about whether the financial statement and financial
highlights are free of material misstatement. An audit includes examining, on a
test basis, evidence supporting the amounts and disclosures in the financial
statements. Our procedures included confirmation of securities owned as of
September 30, 1995 by correspondence with the custodian and brokers. An
audit also includes assessing the accounting principles used and significant
estimates made by management, as well as evaluating the overall financial
statement presentation. We believe that our audits provide a reasonable basis
for our opinion.
In our opinion, the financial statements and financial highlights referred
to above present fairly in all material respects, the financial position of the
International Equity Portfolio as of September 30, 1995, the results of its
operations, the changes in its net assets, and the financial highlights for the
periods referred to above, in conformity with generally accepted accounting
principles.
/s/ Coopers & Lybrand L.L.P.
Kansas City, Missouri
November 14, 1995
