<PAGE> 1
INTERNATIONAL EQUITY PORTFOLIO 10
------------------------------------------------------------------------
<TABLE>
<CAPTION>
Statement of Assets and Liabilities
================================================================================================
June 30, 1995 (unaudited)
- ------------------------------------------------------------------------------------------------
<S> <C>
Assets
- ------------------------------------------------------------------------------------------------
Investments, at Value (Cost $59,543,254) $68,027,650
- ------------------------------------------------------------------------------------------------
Foreign Cash (Cost $404,201) 406,687
- ------------------------------------------------------------------------------------------------
Cash 1,856
- ------------------------------------------------------------------------------------------------
Dividends Receivable 367,747
- ------------------------------------------------------------------------------------------------
Prepaid Expenses 859
- ------------------------------------------------------------------------------------------------
Total Assets 68,804,799
- ------------------------------------------------------------------------------------------------
Liabilities
- ------------------------------------------------------------------------------------------------
Due to Bankers Trust 22,500
- ------------------------------------------------------------------------------------------------
Payable for Securities Purchased 406,088
- ------------------------------------------------------------------------------------------------
Accrued Expenses and Accounts Payable 16,381
- ------------------------------------------------------------------------------------------------
Net Unrealized Depreciation on Forward Foreign Currency Contracts 30,053
- ------------------------------------------------------------------------------------------------
Total Liabilities 475,022
- ------------------------------------------------------------------------------------------------
Net Assets $68,329,777
================================================================================================
Composition of Net Assets
- ------------------------------------------------------------------------------------------------
Paid-in Capital $59,865,806
- ------------------------------------------------------------------------------------------------
Net Unrealized Appreciation on Securities 8,484,396
- ------------------------------------------------------------------------------------------------
Net Unrealized (Depreciation) on Forward Foreign Currency Contracts (30,053)
- ------------------------------------------------------------------------------------------------
Net Unrealized Appreciation on Foreign Currency Translation 9,628
- ------------------------------------------------------------------------------------------------
NET ASSETS, JUNE 30, 1995 $68,329,777
================================================================================================
</TABLE>
See Notes to Financial Statements on Pages 18 and 19
<PAGE> 2
INTERNATIONAL EQUITY PORTFOLIO 11
------------------------------------------------------------------------
<TABLE>
<CAPTION>
Statement of Operations
================================================================================================================
For the six months ended June 30, 1995 (unaudited)
- ----------------------------------------------------------------------------------------------------------------
<S> <C> <C>
Investment Income
- ----------------------------------------------------------------------------------------------------------------
Dividends (net of foreign withholding tax of $122,774) $977,996
- ----------------------------------------------------------------------------------------------------------------
Interest 84,624
- ----------------------------------------------------------------------------------------------------------------
Total Investment Income $1,062,620
- ----------------------------------------------------------------------------------------------------------------
Expenses
- ----------------------------------------------------------------------------------------------------------------
Advisory Fee 193,899
- ----------------------------------------------------------------------------------------------------------------
Administration and Services Fee 44,746
- ----------------------------------------------------------------------------------------------------------------
Professional Fees 14,894
- ----------------------------------------------------------------------------------------------------------------
Trustees Fees 732
- ----------------------------------------------------------------------------------------------------------------
Insurance 1,318
- ----------------------------------------------------------------------------------------------------------------
Miscellaneous 646
- ----------------------------------------------------------------------------------------------------------------
Total Expenses 256,235
- ----------------------------------------------------------------------------------------------------------------
Less: Expenses Absorbed by Bankers Trust (62,336) 193,899
- ----------------------------------------------------------------------------------------------------------------
Net Investment Income 868,721
- ----------------------------------------------------------------------------------------------------------------
Net Realized and Unrealized Gain (Loss) on Securities and Foreign Currency
- ----------------------------------------------------------------------------------------------------------------
Net Realized Gain from Securities Transactions 1,385,515
- ----------------------------------------------------------------------------------------------------------------
Net Realized (Loss) from Foreign Currency Transactions (518,096)
- ----------------------------------------------------------------------------------------------------------------
Net Unrealized Appreciation on Securities 3,584,501
- ----------------------------------------------------------------------------------------------------------------
Net Unrealized Appreciation on Forward Foreign Currency Contracts 67,871
- ----------------------------------------------------------------------------------------------------------------
Net Unrealized (Depreciation) on Foreign Currency Translation (238)
- ----------------------------------------------------------------------------------------------------------------
Net Realized and Unrealized Gain on Securities and Foreign Currency 4,519,553
- ----------------------------------------------------------------------------------------------------------------
Net Increase in Net Assets from Operations $5,388,274
================================================================================================================
</TABLE>
See Notes to Financial Statements on Pages 18 and 19
<PAGE> 3
INTERNATIONAL EQUITY PORTFOLIO 12
------------------------------------------------------------------------
<TABLE>
<CAPTION>
Statement of Changes in Net Assets
========================================================================================================
For the six For the
months ended year ended
June 30, 1995 December
(unaudited) 31, 1994
- --------------------------------------------------------------------------------------------------------
<S> <C> <C>
Increase (Decrease) in Net Assets
- --------------------------------------------------------------------------------------------------------
From Operations
- --------------------------------------------------------------------------------------------------------
Net Investment Income $ 868,721 $ 839,522
- --------------------------------------------------------------------------------------------------------
Net Realized Gain from Securities and
Foreign Currency Transactions 867,419 1,178,394
- --------------------------------------------------------------------------------------------------------
Net Unrealized Appreciation (Depreciation) on
Securities and Foreign Currency 3,652,134 (402,629)
- --------------------------------------------------------------------------------------------------------
Net Increase in Net Assets from Operations 5,388,274 1,615,287
- --------------------------------------------------------------------------------------------------------
From Capital Transactions
- --------------------------------------------------------------------------------------------------------
Proceeds from Capital Invested 18,810,696 26,018,869
- --------------------------------------------------------------------------------------------------------
Value of Capital Withdrawn (11,911,336) (5,499,175)
- --------------------------------------------------------------------------------------------------------
Net Increase in Net Assets from Capital Transactions 6,899,360 20,519,694
- --------------------------------------------------------------------------------------------------------
Total Increase in Net Assets 12,287,634 22,134,981
========================================================================================================
Net Assets
- --------------------------------------------------------------------------------------------------------
Beginning of Period 56,042,143 33,907,162
- --------------------------------------------------------------------------------------------------------
End of Period $68,329,777 $56,042,143
========================================================================================================
</TABLE>
See Notes to Financial Statements on Pages 18 and 19
<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 six August 4, 1992
months ended For the year ended (Commencement
June 30, 1995 December 31, of Operations) to
(unaudited) ------------------ December 31, 1992
1994 1993
- --------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Ratios and Supplemental Data
Ratio of Net Investment Income to Average Net Assets 2.91%* 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 0.21%* 0.24% 0.39% 0.93%*
Portfolio Turnover Rate 18% 15% 17% 7%
Net Assets, End of Period (000's omitted) $68,330 $56,042 $33,907 $8,225
</TABLE>
* Annualized
See Notes to Financial Statements on Pages 18 and 19
<PAGE> 5
INTERNATIONAL EQUITY PORTFOLIO 14
------------------------------------------------------------------------
<TABLE>
<CAPTION>
Schedule of Portfolio Investments
===============================================================================
June 30, 1995 (unaudited)
Shares Description Value
===============================================================================
<S> <C> <C>
COMMON STOCKS - 96.05%
- -------------------------------------------------------------------------------
Australia - 6.01%
- -------------------------------------------------------------------------------
554,200 Burns Philip & Company
(Consumer Goods) $ 1,157,407
- -------------------------------------------------------------------------------
227,000 National Australia Bank
(Finance) 1,793,094
- -------------------------------------------------------------------------------
206,500 News Corp. (Consumer
Services) 1,152,962
- -------------------------------------------------------------------------------
4,103,463
===============================================================================
Austria - 2.15%
- -------------------------------------------------------------------------------
25,400 Mayr-Melnhof Karton
(Materials) 1,468,193
===============================================================================
Canada - 2.59%
- -------------------------------------------------------------------------------
77,800 TELUS (Utilities) 942,214
- -------------------------------------------------------------------------------
25,500 Westcoast Energy (Utilities) 378,483
- -------------------------------------------------------------------------------
30,300 Westcoast Energy, ADR (Utilities) 446,925
- -------------------------------------------------------------------------------
1,767,622
===============================================================================
Denmark - 1.99%
- -------------------------------------------------------------------------------
24,400 Teledanmark, Cl.B (Utilities) 1,358,695
===============================================================================
Finland - 3.19%
- -------------------------------------------------------------------------------
69,900 Kymmene (Materials) 2,177,213
===============================================================================
France - 10.47%
- -------------------------------------------------------------------------------
14,300 Club Mediterranee (Consumer
Services)(a) 1,459,816
- -------------------------------------------------------------------------------
20,500 Elf Aquitaine (Energy) 1,517,186
- -------------------------------------------------------------------------------
13,400 Lyonnaise des Eaux
Dumez (Conglomerates) 1,269,183
- -------------------------------------------------------------------------------
3,460 Taittinger (Consumer Goods) 1,592,857
- -------------------------------------------------------------------------------
21,800 Total, Cl.B (Energy) 1,314,121
- -------------------------------------------------------------------------------
7,153,163
===============================================================================
Germany - 6.90%
- -------------------------------------------------------------------------------
6,600 Bayer (Materials) 1,640,810
- -------------------------------------------------------------------------------
6,500 Berliner Kraft & Light
(Utilities) 1,600,904
- -------------------------------------------------------------------------------
5,100 Volkswagen (Consumer Goods) 1,470,055
- -------------------------------------------------------------------------------
4,711,769
===============================================================================
Hong Kong - 3.64%
- -------------------------------------------------------------------------------
147,000 Guoco Group
(Emerging Markets) 685,824
- -------------------------------------------------------------------------------
372,000 Hutchison Whampoa
(Conglomerates) $ 1,798,054
- -------------------------------------------------------------------------------
2,483,878
===============================================================================
Indonesia - 2.22%
- -------------------------------------------------------------------------------
67,500 Hanjaya Mandala Sampoerna
(Emerging Markets) 530,422
- -------------------------------------------------------------------------------
112,000 Indofood Sukses Makmur
(Emerging Markets)(a) 482,802
- -------------------------------------------------------------------------------
479,000 SMART (Emerging Markets) 505,456
- -------------------------------------------------------------------------------
1,518,680
===============================================================================
Italy - 4.04%
- -------------------------------------------------------------------------------
1,220,000 Credito Italiano (Finance) 1,415,932
- -------------------------------------------------------------------------------
486,700 Societa Finanziaria Telefonica
(Utilities) 1,347,395
- -------------------------------------------------------------------------------
2,763,327
===============================================================================
Japan - 11.45%
- -------------------------------------------------------------------------------
175,000 Hitachi (Capital Equipment) 1,745,765
- -------------------------------------------------------------------------------
58,000 Jusco (Consumer Services) 1,205,124
- -------------------------------------------------------------------------------
23,000 Kyocera (Capital Equipment) 1,895,283
- -------------------------------------------------------------------------------
63,000 Sankyo (Consumer Goods) 1,465,203
- -------------------------------------------------------------------------------
239,000 Toshiba (Capital Equipment) 1,515,176
- -------------------------------------------------------------------------------
7,826,551
===============================================================================
Latin America - 0.64%
- -------------------------------------------------------------------------------
31,500 Latin American Equity Fund
(Emerging Markets) 441,000
===============================================================================
Malaysia - 0.72%
- -------------------------------------------------------------------------------
69,000 Oyl Industries Berhad (Emerging
Markets) 492,453
===============================================================================
Netherlands - 13.75%
- -------------------------------------------------------------------------------
13,700 AKZO Nobel (Consumer Goods) 1,638,726
- -------------------------------------------------------------------------------
37,100 International Nederlanden
Group (Finance) 2,053,523
- -------------------------------------------------------------------------------
57,200 KLM Royal Dutch Airlines
(Transportation)(a) 1,858,270
- -------------------------------------------------------------------------------
58,100 Philips Electronics (Consumer
Goods) 2,461,642
- -------------------------------------------------------------------------------
11,300 Royal Dutch Petroleum (Energy) 1,380,844
- -------------------------------------------------------------------------------
9,393,005
===============================================================================
</TABLE>
See Notes to Financial Statements on Pages 18 and 19
<PAGE> 6
INTERNATIONAL EQUITY PORTFOLIO 15
------------------------------------------------------------------------
<TABLE>
<CAPTION>
Schedule of Portfolio Investments
===============================================================================
June 30, 1995 (unaudited)
Shares Description Value
===============================================================================
<S> <C> <C>
Norway - 2.28%
- -------------------------------------------------------------------------------
37,200 Norsk Hydro (Energy) $ 1,561,198
===============================================================================
Singapore - 1.43%
- -------------------------------------------------------------------------------
133,000 Jardine Matheson Holdings
(Conglomerates) 977,550
===============================================================================
Spain - 5.31%
- -------------------------------------------------------------------------------
9,635 Banco Popular Espanol (Finance) 1,435,382
- -------------------------------------------------------------------------------
21,700 Empresa Nacional de Electricidad
(Utilities) 1,073,999
- -------------------------------------------------------------------------------
13,124 Fomento de Construcciones
y Contratas (Conglomerates) 1,118,785
- -------------------------------------------------------------------------------
3,628,166
===============================================================================
Sweden - 2.44%
- -------------------------------------------------------------------------------
54,100 Astra AB, Series A
(Consumer Goods) 1,670,821
===============================================================================
Switzerland - 2.57%
- -------------------------------------------------------------------------------
1,693 BBC Brown Boveri & Cie, Cl.A
(Capital Equipment) 1,755,060
===============================================================================
Taiwan - 0.64%
- -------------------------------------------------------------------------------
29,250 Yageo, GDR (Emerging Markets)(a) 438,750
===============================================================================
Thailand - 0.65%
- -------------------------------------------------------------------------------
41,000 PTT Exploration & Production
(Emerging Markets)(a) 441,807
===============================================================================
United Kingdom - 9.02%
- -------------------------------------------------------------------------------
407,000 Iceland Group (Consumer Services) 1,168,131
- -------------------------------------------------------------------------------
560,700 Lonrho (Conglomerates) 1,323,174
- -------------------------------------------------------------------------------
110,100 Manweb (Utilities) 1,158,659
- -------------------------------------------------------------------------------
124,100 National Power Partially Paid
(Utilities) 341,339
- -------------------------------------------------------------------------------
116,300 Powergen (Installment Shares)
(Utilities) 355,118
- -------------------------------------------------------------------------------
427,100 Storehouse (Consumer Services) 1,818,299
- -------------------------------------------------------------------------------
6,164,720
===============================================================================
Venezuela - 1.95%
- -------------------------------------------------------------------------------
51,700 Coriman SACA, ADR
(Emerging Markets) 336,050
- -------------------------------------------------------------------------------
608,500 Electricidad de Caracas
(Emerging Markets) (b) 635,612
- -------------------------------------------------------------------------------
$ 103,935 Mavesa, ADR (Emerging
Markets)(b) $ 361,164
- -------------------------------------------------------------------------------
1,332,826
===============================================================================
Total Common Stocks
(Cost $57,220,164) $65,629,910
===============================================================================
PREFERRED STOCKS - 0.59%
- -------------------------------------------------------------------------------
Australia - 0.59%
- -------------------------------------------------------------------------------
82,050 News Corp. Preferred
(Consumer Services) $ 406,241
- -------------------------------------------------------------------------------
Total Preferred Stocks
(Cost $331,591) $ 406,241
===============================================================================
Principal
Amount
===============================================================================
U.S. TREASURY BILLS - 2.92%
- -------------------------------------------------------------------------------
$1,995,000 5.264%, 7/13/95 $ 1,991,499
- -------------------------------------------------------------------------------
Total U.S. Treasury Bills
(Amortized Cost $1,991,499) $ 1,991,499
===============================================================================
Total Investments
(Cost $59,543,254) 99.56% $68,027,650
- -------------------------------------------------------------------------------
Other Assets in Excess
of Liabilities 0.44% 302,127
- -------------------------------------------------------------------------------
Net Assets 100.00% $68,329,777
===============================================================================
</TABLE>
(a) Non-Income Producing Securities
(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 $361,164 or 0.53% of net assets.
(c) Industry Diversification (as a percentage of Total Value of Investments):
Capital Equipment................................................. 10.16%
Conglomerates..................................................... 9.54%
Consumer Goods.................................................... 16.84%
Consumer Services................................................. 10.60%
Emerging Markets.................................................. 7.87%
Energy............................................................ 8.49%
Finance........................................................... 9.84%
Materials......................................................... 7.77%
Transportation.................................................... 2.73%
Utilities......................................................... 13.23%
U.S. Treasury Bills............................................... 2.93%
------
100.00%
======
See Notes to Financial Statements on Pages 18 and 19
<PAGE> 7
INTERNATIONAL EQUITY PORTFOLIO 18
------------------------------------------------------------------------
Notes To Financial Statements (unaudited)
- --------------------------------------------------------------------------------
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.
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 19
------------------------------------------------------------------------
Notes To Financial Statements (unaudited)
- --------------------------------------------------------------------------------
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 six months ended June 30, 1995, this fee aggregated $44,746.
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 six months ended June 30, 1995,
this fee aggregated $193,899.
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 six months ended June 30,
1995, expenses of the Portfolio have been reduced $62,336.
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 six months ended, were $16,521,666 and
$10,173,378, respectively. The aggregate gross unrealized appreciation for all
investments was $10,324,942 and the aggregate gross unrealized depreciation for
all investments was $1,840,546.
Note 4 -- Open Forward Foreign Currency Contracts
As of June 30, 1995, the Portfolio has entered into the following open forward
foreign currency contracts:
<TABLE>
<CAPTION>
Net Unrealized
Contracts In Settle- Appreciation
to Exchange ment Value (Depreciation)
Deliver For Date (US $) (US $)
- ------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Sales
- ------------------------------------------------------------------------------------------------
DEM 8,433,480 USD 6,000,000 7/03/95 6,101,490 (101,490)
- ------------------------------------------------------------------------------------------------
DEM 8,433,480 USD 6,085,947 8/03/95 6,114,378 (28,431)
- ------------------------------------------------------------------------------------------------
JPY 507,378,000 USD 6,083,669 7/17/95 6,009,157 74,512
================================================================================================
$ 18,169,616 $18,225,025 $ (55,409)
================================================================================================
Purchases
- ------------------------------------------------------------------------------------------------
USD $ 6,078,183 DEM 8,433,480 7/03/95 6,101,490 23,307
- ------------------------------------------------------------------------------------------------
USD 297,717 GBP 188,000 7/03/95 299,766 2,049
================================================================================================
$ 6,375,900 $ 6,401,256 25,356
================================================================================================
$ (30,053)
=========
</TABLE>
