<PAGE>
The Non-U.S. Equity Portfolio
Semi-Annual Report April 30, 1995
(unaudited)
(The following pages should be read in conjunction
with The Pierpont International Equity Fund
Semi-Annual Financial Statements)
15
<PAGE>
THE NON-U.S. EQUITY PORTFOLIO
SCHEDULE OF INVESTMENTS (UNAUDITED)
APRIL 30, 1995
- - --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
VALUE
SECURITY DESCRIPTION SHARES (NOTE 1A)
- - --------------------------------------------------------------------------- ----------- ------------
<S> <C> <C>
COMMON STOCKS (88.0%)
AUSTRALIA (2.6%)
Broken Hill Proprietary Co. Ltd. (Energy Sources)........................ 226,700 $ 3,297,694
CSR Ltd. (Multi-Industry)................................................ 217,000 694,451
Hardie (James) Industries (Building Materials)........................... 349,800 554,632
Holyman Ltd. (Materials & Commodities)................................... 39,200 59,873
Howard Smith (Multi-Industry)............................................ 120,000 533,275
National Australia Bank Ltd. (Banking)................................... 213,000 1,843,552
News Corporation Ltd. (Publishing)....................................... 387,400 1,882,197
North Broken Hill Peko Ltd. (Metals-Non Ferrous)......................... 211,500 513,790
Rothmans Holdings Ltd. (Beverages & Tobacco)............................. 95,000 366,899
Santos Ltd. (Energy Sources)............................................. 164,000 450,884
Southcorp Holdings Ltd. (Food)........................................... 637,000 1,408,452
TNT Ltd. (Transportation) (A)............................................ 511,700 729,458
Western Mining Corp. Holdings Ltd. (Metals & Mining)..................... 376,900 2,132,724
------------
14,467,881
------------
AUSTRIA (0.3%)
Bohler Udeholm (Iron/Steel) (A).......................................... 5,000 298,645
Oesterreichische El Wirtsch, Class A (Utilities)......................... 6,600 435,529
OMV AG (Energy Sources) (A).............................................. 4,550 470,690
VA Technologie AG (Materials & Commodities) (A).......................... 4,000 441,708
------------
1,646,572
------------
BELGIUM (0.9%)
Electrabel NPV (Utilities)............................................... 1,970 423,968
Fortis AG NPV (Insurance)................................................ 3,270 336,972
Generale De Banque SA (Banking).......................................... 3,300 1,037,539
Glaverbel (Building Materials)........................................... 3,700 518,752
Groupe Bruxelles Lambert NPV (Multi-Industry)............................ 11,700 1,521,451
Petrofina SA NPV (Energy Sources)........................................ 700 218,367
Tractebel Capital NPV (Multi-Industry)................................... 3,200 1,146,863
------------
5,203,912
------------
DENMARK (1.2%)
Danisco AS (Food & Household Products)................................... 49,000 1,953,590
Den Danske Bank (Banking)................................................ 12,700 763,008
Girobank AS (Banking) (A)................................................ 5,000 211,288
Iss International Service System, Series B (Business & Public
Services)............................................................... 17,000 484,657
Novo Nordisk AS, Series B (Health & Personal Care)....................... 9,000 927,648
Sophus Berendsen, Class A (Multi-Industry)............................... 5,000 462,078
Sophus Berendsen, Class B (Multi-Industry)............................... 7,500 693,118
Teledanmark, Series B (Telecommunications)............................... 20,910 1,091,063
------------
6,586,450
------------
</TABLE>
See Accompanying Notes.
16
<PAGE>
THE NON-U.S. EQUITY PORTFOLIO
SCHEDULE OF INVESTMENTS (UNAUDITED) (CONTINUED)
APRIL 30, 1995
- - --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
VALUE
SECURITY DESCRIPTION SHARES (NOTE 1A)
- - --------------------------------------------------------------------------- ----------- ------------
FRANCE (10.1%)
<S> <C> <C>
Air Liquide (Chemicals).................................................. 12,119 $ 1,948,313
Alcatel Alsthom (Electrical & Electronics)............................... 43,020 3,992,088
Axa (Multi-Industry) (A)................................................. 24,500 1,292,308
Banque Nationale de Paris (Banking)...................................... 12,400 603,093
Bouygues (Engineering & Construction).................................... 8,300 1,011,742
Carrefour Supermarkets (Merchandising)................................... 4,440 2,227,228
Casino Guichard Perrachon et Cie (Merchandising)......................... 225 6,639
Castorama Dubois Investissments (Merchandising).......................... 4,000 662,597
Christian Dior SA (Retail)............................................... 24,175 2,161,680
Compagnie Financiere de Cic Union Europ Certe de Invest (Banking)........ 21,777 1,431,415
Compagnie Financiere de Paribas, Class A (Banking)....................... 36,903 2,252,930
Compagnie Financiere de St. Gobain (Glass & Packaging)................... 17,408 2,253,050
Compagnie Generale de Eaux (Utilities)................................... 28,060 2,957,892
Credit Local de France (Financial Services).............................. 12,200 1,040,252
Docks de France (Merchandising).......................................... 2,875 429,436
Eridania Beghin-Say (Food & Household Products).......................... 6,500 1,005,291
Groupe Danone (Food Processing).......................................... 16,305 2,697,592
Havas (Business & Public Services)....................................... 11,432 988,261
Imetal (Metals Non-Ferous)............................................... 5,281 560,985
LOreal Coppe SA (Health & Personal Care)................................. 2,000 526,659
Lafarge Coppe SA (Building Materials).................................... 7,300 568,966
LaGardere Groupe (Leisure & Tourism)..................................... 31,880 715,581
LVMH Moet Hennessy (Beverages)........................................... 5,214 992,082
Lyonnaise des Eaux (Environmental Control) (A)........................... 5,500 547,090
Peugeot SA (Automotive) (A).............................................. 9,825 1,417,567
Pinault Printemps Redouto (Building Materials)........................... 210 47,521
Promodes (Merchandising)................................................. 6,560 1,504,501
Renault SA (Automotive) (A).............................................. 29,200 1,008,987
Rhone Poulenc SA, Class A (Chemicals).................................... 66,604 1,623,761
Roussel Uclaf (Pharmaceuticals).......................................... 7,076 1,015,177
Sanofi (Pharmaceuticals)................................................. 29,800 1,643,427
Seb AG ( Household Products)............................................. 5,000 548,433
SEITA (Tobacco) (A)...................................................... 25,600 780,399
SGS - Thomson Microelectronics N.V. (Electronics) (A).................... 30,000 1,129,426
Societe Generale (Banking)............................................... 22,330 2,453,846
Societe Nationale Elf Aquitaine (Energy Sources)......................... 26,388 2,108,785
Sommer-Allibert (Building Materials)..................................... 2,260 863,712
Sovac-Credit Mobilier Industrie (Financial Services)..................... 1,770 139,756
Synthelabo (Health & Personal Care)...................................... 21,000 1,057,692
Television Francaise (Broadcasting & Publishing)......................... 8,300 758,384
Total, Class B (Energy Sources).......................................... 69,515 4,345,748
Ugine SA (Iron/Steel).................................................... 6,500 460,317
------------
55,780,609
------------
GERMANY (4.1%)
Allianz AG Holdings (Insurance).......................................... 890 1,630,029
Ava Allgemeine Handels-Der Verbr (Merchandising)......................... 2,040 765,202
</TABLE>
See Accompanying Notes.
17
<PAGE>
THE NON-U.S. EQUITY PORTFOLIO
SCHEDULE OF INVESTMENTS (UNAUDITED) (CONTINUED)
APRIL 30, 1995
- - --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
VALUE
SECURITY DESCRIPTION SHARES (NOTE 1A)
- - --------------------------------------------------------------------------- ----------- ------------
<S> <C> <C>
GERMANY (CONTINUED)
Bayer AG (Chemicals)..................................................... 6,200 $ 1,525,067
Bank Gesellschaft Berlin AG (Banking).................................... 1,600 368,174
Bilfinger & Berger Bau AG (Construction & Housing)....................... 1,285 598,795
Colonia Konzern AG (Insurance) (A)....................................... 585 428,316
Continental AG (Industrial Components)................................... 3,330 494,828
Daimler-Benz AG (Automobiles)............................................ 1,688 772,951
Deutsche Bank AG (Banking) (A)........................................... 5,020 2,461,658
Deutsche Pfandbrief Und Hypotheken Bank (Banking)........................ 1,600 813,677
Hoechst AG (Chemicals)................................................... 4,300 916,887
Karstadt AG (Merchandising).............................................. 500 215,141
Lufthansa AG (Transportation) (A)........................................ 1,720 227,795
Man AG (Machinery & Engineering)......................................... 2,335 578,571
Mannesmann AG (Machinery & Engineering).................................. 1,500 406,838
Munchener Ruckversicherungs (Insurance).................................. 1,172 2,337,575
Rheinisch Westfalisches Elekt AG (Utilities)............................. 2,700 905,648
Schering AG (Health & Personal Care)..................................... 1,300 964,474
Siemens AG (Electrical & Electronics).................................... 4,000 1,941,860
Thyssen AG (Metals) (A).................................................. 5,400 1,001,861
Veba AG (Energy Sources)................................................. 4,860 1,808,959
Viag AG (Multi-Industry)................................................. 850 314,236
Volkswagen AG (Automotive)............................................... 4,430 1,235,083
------------
22,713,625
------------
HONG KONG (2.6%)
Citic Pacific Ltd. (Transportation)...................................... 593,000 1,451,667
Hang Seng Bank (Banking)................................................. 226,400 1,491,590
Hong Kong Electric Holdings Ltd. (Utilities)............................. 407,500 1,250,242
Hong Kong Telecommunications Ltd. (Telecommunications)................... 1,225,200 2,397,853
Jardine Matheson Holdings Ltd. (Multi-Industry).......................... 400 3,180
New World Development Co. Ltd. (Real Estate)............................. 336,000 872,445
Sing Tao Holdings (Publishing)........................................... 1,218,000 794,587
Sun Hung Kai Properties Ltd. (Real Estate)............................... 450,000 2,871,722
Swire Pacific Ltd. (Transportation)...................................... 340,000 2,272,962
Television Broadcasts Ltd. (Broadcasting & Publishing)................... 208,000 773,854
------------
14,180,102
------------
JAPAN (45.1%)
Achilles Corp. (Tire & Rubber)........................................... 400,000 1,808,770
Aichi Bank Ltd. (Banking)................................................ 4,700 526,852
Aichi Corp. (Machinery).................................................. 90,000 1,006,723
Aichi Machine Industry (Auto & Trucks)................................... 176,000 1,101,636
Asahi Bank Ltd. (Banking)................................................ 156,000 2,004,879
Asatsu Inc. (Commerical Services)........................................ 25,000 996,609
Asics Corp. (Recreation, Other Consumer Goods)........................... 400,000 1,489,855
Bank of Nagoya (Banking)................................................. 69,000 606,783
Central Glass Co. Ltd. (Materials & Commodities) (A)..................... 300,000 1,306,598
Chiyoda Fire & Marine Insurance Ltd. (Insurance)......................... 5,000 31,535
</TABLE>
See Accompanying Notes.
18
<PAGE>
THE NON-U.S. EQUITY PORTFOLIO
SCHEDULE OF INVESTMENTS (UNAUDITED) (CONTINUED)
APRIL 30, 1995
- - --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
VALUE
SECURITY DESCRIPTION SHARES (NOTE 1A)
- - --------------------------------------------------------------------------- ----------- ------------
<S> <C> <C>
JAPAN (CONTINUED)
Chou Trust & Banking Co. (Banking)....................................... 200,000 $ 2,903,552
Cosmo Oil Company Ltd. (Energy Sources).................................. 300,000 2,170,524
Daido Hoxan Corp. (Chemicals)............................................ 183,000 1,232,558
Daido Steel Co. (Iron/Steel)............................................. 500,000 2,760,754
Daiei Inc. (Retail)...................................................... 75,000 928,185
Daiichi Kangyo Bank Ltd. (Banking)....................................... 200,000 4,093,532
Daiichi Katei Denki Co. (Retail) (A)..................................... 101,000 522,818
Daikin Industries (Machinery & Engineering).............................. 220,000 1,884,929
Dainichiseika Color & Chemical Manufacturing Co. (Chemicals)............. 140,000 1,191,170
Daishi Bank (Banking).................................................... 150,000 1,054,918
Daiso Co (Chemicals)..................................................... 75,000 356,102
Daito Trust Construction Co. Ltd. (Construction & Housing)............... 95,000 960,909
Daiwa Bank (Banking)..................................................... 385,000 3,839,234
Daiwa Securities Co. Ltd. (Financial Services)........................... 150,000 1,892,069
Danto Corp. (Building Materials)......................................... 16,000 215,148
East Japan Railway Co. (Transportation).................................. 700 3,640,150
Fanuc Co. Ltd. (Electronics)............................................. 35,000 1,582,674
Fukui Bank (Banking)..................................................... 200,000 1,090,022
Fuji Denki Reiki (Retail)................................................ 110,250 1,574,344
Fuji Fire & Marine (Insurance)........................................... 230,000 1,258,999
Gakken Co. Ltd. (Broadcasting & Publishing) (A).......................... 300,000 2,356,161
Gunze Sangyo Inc. (Transportation)....................................... 200,000 935,325
Hitachi Ltd. (Electrical & Electronics).................................. 500,000 5,087,166
Hokkaido Can Co. Ltd. (Materials & Commodities).......................... 120,000 1,163,801
Hokkaido Takushoku Bank (Banking)........................................ 550,000 1,983,102
Honda Motor Co. Ltd. (Automotive)........................................ 400,000 6,473,493
Industrial Bank of Japan Ltd. (Banking).................................. 160,000 4,893,199
Ishikawajima-Harima Heavy Industries (Machinery & Engineering)........... 500,000 2,290,712
Ishizuka Glass Co. Ltd. (Materials & Commodities)........................ 130,000 942,107
Itoham Foods Inc (Food Processing)....................................... 100,000 840,126
Izumiya Co. Ltd. (Merchandising)......................................... 55,000 922,830
Japan Airport Terminals (Media & Leisure)................................ 31,000 383,650
Juroku Bank (Banking).................................................... 7,000 44,731
Kagawa Bank (Banking).................................................... 100,000 1,134,051
Kaken Pharmaceutical Co. (Health & Personal Care)........................ 280,000 3,431,903
Kanematsu Corp. (Wholesale & International Trade)........................ 250,000 1,169,156
Kansai Supermarket (Retail).............................................. 40,000 372,226
Kawasaki Kisen Kaisha Ltd. (Transportation & Shipping) (A)............... 600,000 2,149,105
Kitz Corp. (Machinery)................................................... 291,000 1,506,337
Kokusai Denshin Denwa (Media & Leisure).................................. 6,000 539,061
Konica Corp. (Recreation, Other Consumer Goods).......................... 300,000 2,491,819
Kurabo Industries (Textiles & Apparel)................................... 302,000 1,257,809
Maruetsu Inc. (Retail)................................................... 40,000 385,554
Maruha Corp. (Fishery) (A)............................................... 310,000 1,280,062
Marutomi Group Co. (Merchandising)....................................... 60,000 721,128
Matsui Construction Co. Ltd. (Engineering & Construction)................ 35,000 335,693
Matsumoto Yushi Seiyaku Co. (Chemicals).................................. 42,000 1,224,490
Matsushita Electric Industries Co. Ltd. (Consumer Electronics)........... 146,000 2,449,694
Matsushita Electric Works (Building & Contractors)....................... 620,000 7,451,657
</TABLE>
See Accompanying Notes.
19
<PAGE>
THE NON-U.S. EQUITY PORTFOLIO
SCHEDULE OF INVESTMENTS (UNAUDITED) (CONTINUED)
APRIL 30, 1995
- - --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
VALUE
SECURITY DESCRIPTION SHARES (NOTE 1A)
- - --------------------------------------------------------------------------- ----------- ------------
<S> <C> <C>
JAPAN (CONTINUED)
Mitsubishi Chemical Corp. (Chemicals).................................... 560,000 $ 3,285,298
Mitsubishi Electric Corp. Ltd. (Electrical & Electronics)................ 400,000 2,836,913
Mitsubishi Materials Corp. (Metals)...................................... 500,000 2,498,959
Mitsubishi Motors Corp. (Automotive)..................................... 500,000 4,646,873
Mitsubishi Pencil Co. Ltd. (Business & Public Services).................. 30,000 349,854
Mitsubishi Trust & Banking Corp. (Banking)............................... 98,000 1,098,542
Mitsukoshi Ltd. (Merchandising).......................................... 240,000 2,207,652
Morinaga Milk Industry Co. Ltd. (Food & Household Products).............. 230,000 1,272,684
Nagasakiya Co. (Merchandising) (A)....................................... 435,000 2,375,974
Naigai Co. (Textile & Apparel)........................................... 115,000 665,080
NEC Corp. (Electrical & Electronics)..................................... 605,000 6,695,425
Nichiei Construction Co. Ltd. (Building & Contractors)................... 80,000 872,970
Nichii Co. Ltd. (Merchandising).......................................... 140,000 1,599,334
Nihon Matai Co. (Wholesale & International Trade)........................ 94,600 683,313
Nippon Credit Bank (Banking)............................................. 185,000 1,065,508
Nippon Kinzoku Co. (Iron/Steel).......................................... 110,000 585,113
Nippon Koshuha Steel Co. (Iron/Steel) (A)................................ 350,000 1,282,799
Nippon Steel Corp. (Metals).............................................. 500,000 1,987,267
Nippon Suisan Kaisha (Food) (A).......................................... 210,000 1,097,043
Nissho Iwai Corp. (Wholesale & International Trade)...................... 655,000 3,351,580
Nissin Electric Co. Ltd. (Electronics)................................... 300,000 2,202,654
Nomura Securities Co. Ltd. (Financial Services).......................... 360,000 7,282,680
North Pacific Bank (Banking)............................................. 210,000 1,224,490
NSK Ltd. (Machinery)..................................................... 200,000 1,458,916
Okamura Corp. (Transportation)........................................... 90,000 803,237
Osaka Gas Co. Ltd. (Utilities)........................................... 519,000 2,130,719
Osaka Sanso Kogyo (Chemicals)............................................ 300,000 1,213,780
Parco Co. (Retail)....................................................... 77,000 884,215
Pioneer Electronic Corp. (Electronics)................................... 75,000 1,579,699
Ricoh Corp. Ltd. (Electronics)........................................... 270,000 2,522,163
Ryobi Ltd. (Metals)...................................................... 400,000 2,284,762
San-in Godo Bank Ltd. (Banking).......................................... 100,000 951,984
Sagami Co. Ltd. (Retail)................................................. 130,000 974,594
Sakura Bank Ltd. (Banking)............................................... 145,000 1,932,528
Sanden Corp. (Industrial Components)..................................... 118,000 734,385
Senko Co. Ltd. (Transportation).......................................... 250,000 1,680,847
Shibusawa Warehouse Co. (Storage/Warehousing)............................ 250,000 1,752,246
Shinobu Foods Products Co. (Food)........................................ 37,000 436,330
Shiga Bank Ltd. (Banking)................................................ 90,000 664,009
Shikoku Electric Power Inc. (Utilities).................................. 110,000 2,971,381
Shin Nippon Air Technologies Co. (Building & Contractors)................ 50,000 951,984
Shinmaywa Industries Ltd. (Machinery & Engineering)...................... 140,000 1,301,125
Showa Aluminium Co. (Metals)............................................. 120,000 604,034
Snow Brand Milk Products Co. Ltd. (Food & Household Products)............ 300,000 2,284,762
Sony Corp. (Electronics)................................................. 65,000 3,279,586
Sumitomo Bank Ltd. (Banking)............................................. 300,000 6,497,293
Sumitomo Corp. (Trade)................................................... 182,000 1,808,413
Sumitomo Forestry Co. (Engineering & Construction)....................... 120,000 2,127,685
Sumitomo Metal Industries (Metals & Mining) (A).......................... 2,563,000 8,417,778
</TABLE>
See Accompanying Notes.
20
<PAGE>
THE NON-U.S. EQUITY PORTFOLIO
SCHEDULE OF INVESTMENTS (UNAUDITED) (CONTINUED)
APRIL 30, 1995
- - --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
VALUE
SECURITY DESCRIPTION SHARES (NOTE 1A)
- - --------------------------------------------------------------------------- ----------- ------------
<S> <C> <C>
JAPAN (CONTINUED)
Suruga Bank Ltd. (Banking)............................................... 90,000 $ 687,571
Takasaki Paper Mfg Co. Ltd. (Forest Products) (A)........................ 57,000 195,347
TDK Corp. (Retail)....................................................... 70,000 3,198,667
Tec Corp. (Electronics) (A).............................................. 40,000 201,821
Toho Gas Co. Ltd. (Utilities)............................................ 247,000 1,043,434
Tohoku Electric Power Co. Inc. (Utilities)............................... 150,000 4,301,779
Tokai Bank Ltd. (Banking)................................................ 300,000 3,855,536
Tokai Rika Denki Co. (Automotive)........................................ 65,000 703,873
Tokio Marine & Fire Insurance Co. Ltd. (The) (Insurance)................. 250,000 2,974,951
Tokyo Electric Power (Utilities)......................................... 50,000 1,600,524
Tokyu Car Corp. (Automotive)............................................. 330,000 2,159,814
Tomiya Apparel Co. (Wholesale & International Trade)..................... 80,000 685,429
Toshiba Corp. (Electrical & Electronics)................................. 350,000 2,328,197
Toshiba Tungaloy Co. (Machinery) (A)..................................... 200,000 1,032,903
Toshiba Engineeering & Construction Co. (Engineering & Construction)..... 100,000 947,224
Toyo Ink Manufacturing Co. (Chemicals)................................... 133,000 876,801
Toyo Tire & Rubber Co. (Materials & Commodities) (A)..................... 400,000 1,965,848
Toyoda Gosei Co. (Automotive)............................................ 199,000 1,683,691
Toyota Motor Corp. (Automotive).......................................... 83,000 1,688,939
Uchida Yoko Co. (Wholesale & International Trade)........................ 170,000 1,041,828
Uni-Charm Corp. (Merchandising).......................................... 40,000 951,984
Yamaha Corp. (Merchandising)............................................. 81,000 1,089,189
Yamato Transport Co. Ltd. (Shipping)..................................... 30,800 352,953
Yasuda Trust & Banking Co. Ltd. (Financial Services)..................... 700,000 5,664,307
Zenchiku Co. (Wholesale & International Trade)........................... 281,000 1,250,598
Zexel Corp. (Machinery).................................................. 200,000 1,420,837
------------
249,569,484
------------
MALAYSIA (2.2%)
Hong Leong Industries (Multi-Industry)................................... 100,000 529,935
Malayan Cement Berhad (Building & Contractors)........................... 475,000 749,393
Malaysian International Shipping Corp. (Shipping)........................ 202,333 525,616
Public Bank Berhad (Banking)............................................. 430,000 734,062
Sime Darby Berhad (Multi-Industry)....................................... 1,428,400 3,649,160
Sime Uep Properties Berhad (Real Estate)................................. 465,000 934,338
Tan Chong Motor Holdings Berhad (Automotive)............................. 524,000 580,809
Tanjong Public Co. (Leisure & Tourism)................................... 615,000 1,753,944
Telekom Malaysia Berhad (Telecommunications)............................. 360,000 2,475,728
Tenaga Nasional Berhad (Utilities)....................................... 86,000 382,686
------------
12,315,671
------------
NETHERLANDS (1.4%)
Elsevier NV (Publishing)................................................. 91,000 996,714
Dutch State Mines (Chemicals)............................................ 10,700 899,652
Internationale Nederlanden Groep (Insurance)............................. 18,000 948,650
Philips Electronics (Appliances & Household Durables).................... 26,000 991,689
Royal Dutch Petroleum (Energy Sources)................................... 21,000 2,591,006
</TABLE>
See Accompanying Notes.
21
<PAGE>
THE NON-U.S. EQUITY PORTFOLIO
SCHEDULE OF INVESTMENTS (UNAUDITED) (CONTINUED)
APRIL 30, 1995
- - --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
VALUE
SECURITY DESCRIPTION SHARES (NOTE 1A)
- - --------------------------------------------------------------------------- ----------- ------------
<S> <C> <C>
NETHERLANDS (CONTINUED)
Unilever NV (Food & Household Products).................................. 9,300 $ 1,244,514
------------
7,672,225
------------
NEW ZEALAND (0.2%)
Fletcher Challenge Ltd. (Forest Products)................................ 250,000 671,862
Lion Nathan Ltd. (Beverages)............................................. 240,000 522,440
------------
1,194,302
------------
NORWAY (1.7%)
Aker AS, Series B (Building Materials & Components)...................... 58,000 735,473
Hafslund Nycomed, Series B (Health & Personal Care)...................... 68,300 1,485,498
Kvaerner AS, Series B (Machinery & Engineering).......................... 23,100 1,001,124
Norsk Hydro AS (Energy Sources).......................................... 105,000 4,272,472
Orkla AS, A Free (Multi-Industry)........................................ 13,500 579,655
Orkla AS, B Free (Multi-Industry)........................................ 36,600 1,483,387
------------
9,557,609
------------
SINGAPORE (0.8%)
Development Bank of Singapore (Banking).................................. 143,000 1,529,028
Public Bank Berhad (Banking)............................................. 560,000 968,496
Singapore Airlines Ltd. (Airline)........................................ 174,000 1,673,197
Singapore Telecommunications (Utilities)................................. 141,000 281,292
United Overseas Bank (Banking)........................................... 106,000 203,861
------------
4,655,874
------------
SWITZERLAND (3.1%)
Baer Holding AG (Banking)................................................ 490 512,910
BBC AG Brown Boveri & Cie (Machinery & Engineering)...................... 950 937,238
Bil GT Gruppe AG (Banking) (A)........................................... 850 392,969
CS Holding (Banking)..................................................... 1,900 793,877
Ciba Geigy AG (Chemicals)................................................ 3,315 2,267,062
Compagnie Financiere Richemont AG, Series A (Multi-Industry)............. 600 680,391
Holderbank FN Glarus (Building Materials & Components)................... 900 722,261
Nestle SA (Food & Household Products).................................... 2,135 2,083,972
Roche Holdings Genusscheine NPV (Health & Personal Care)................. 445 2,672,562
Sandoz AG (Health & Personal Care)....................................... 3,410 2,227,922
Schweizerische Bankgesellschaft (Banking)................................ 850 781,490
Schweizerische Bankverein (Banking)...................................... 3,620 1,190,457
Schweizerische Rueckversicherungs-Gesellschaft (Insurance)............... 790 550,602
Swissair AG (Transportation) (A)......................................... 880 537,334
Zurich Versicherungs (Insurance)......................................... 710 753,105
------------
17,104,152
------------
</TABLE>
See Accompanying Notes.
22
<PAGE>
THE NON-U.S. EQUITY PORTFOLIO
SCHEDULE OF INVESTMENTS (UNAUDITED) (CONTINUED)
APRIL 30, 1995
- - --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
VALUE
SECURITY DESCRIPTION SHARES (NOTE 1A)
- - --------------------------------------------------------------------------- ----------- ------------
UNITED KINGDOM (11.7%)
<S> <C> <C>
Abbey National PLC (Banking)............................................. 137,000 $ 1,027,390
Allied Colloids Group PLC (Chemicals).................................... 504,000 1,050,338
BAT Industries PLC (Beverages & Tobacco)................................. 290,000 2,188,767
BICC (Industrial Components)............................................. 136,000 700,354
BOC Group PLC (Chemicals)................................................ 68,100 827,414
Bowater PLC (Packaging).................................................. 99,000 713,743
British Gas PLC (Utilities).............................................. 258,000 1,249,726
British Petroleum Co. Ltd. (Energy Sources).............................. 214,000 1,541,117
British Steel PLC (Metals & Mining)...................................... 187,000 508,577
British Telecommunications PLC (Telecommunications)...................... 481,900 3,008,967
British Tire & Rubber PLC (Multi-Industry)............................... 312,000 1,646,862
Cable & Wireless PLC (Telecommunications)................................ 186,000 1,200,290
Dixon Group PLC (Retail)................................................. 208,000 805,021
Farnell Electronic PLC (Electronics)..................................... 92,000 863,148
Forte PLC (Leisure & Tourism)............................................ 150,000 550,370
General Electric Co. PLC (Electrical & Electronics)...................... 184,000 903,122
Glaxo Holdings PLC (Health & Personal Care).............................. 286,996 3,392,317
Glynwed International PLC (Metals)....................................... 207,200 1,055,340
Granada Group PLC (Leisure & Tourism).................................... 118,000 1,081,445
Grand Metropolitan PLC (Multi- Industry)................................. 242,000 1,553,878
Guardian Royal Exchange PLC (Insurance).................................. 675,000 2,047,594
Guinness PLC (Beverages)................................................. 192,000 1,452,205
Hanson Trust PLC (Multi-Industry)........................................ 337,000 1,282,596
Hillsdown Holdings PLC (Food & Household Products)....................... 358,000 1,060,058
HSBC Holdings (Banking).................................................. 130,520 1,538,556
Inchcape PLC (Commercial Services)....................................... 84,000 431,220
Kingfisher (Merchandising)............................................... 210,000 1,510,621
Lloyds Bank PLC (Banking)................................................ 178,100 1,831,443
MEPC (Real Estate)....................................................... 179,000 1,080,222
Marks & Spencer PLC (Merchandising)...................................... 93,300 631,359
National Westminster Bank (Banking)...................................... 125,700 1,092,340
NFC PLC (Transportation- Road & Rail).................................... 388,600 1,100,637
Pearson PLC (Multi-Industry)............................................. 115,000 1,060,428
Peninsular & Orient Steam Navigation Company (Transportation)............ 45,000 417,847
RTZ Corp. PLC (Metals)................................................... 56,300 716,661
Reckitt & Colman (Health & Personal Care)................................ 125,400 1,293,553
Redland PLC (Building Materials & Components)............................ 149,000 980,705
Reuters Holdings PLC (Publishing)........................................ 127,100 966,443
Rolls-Royce PLC (Machinery & Engineering)................................ 294,000 809,044
Scottish Hydro Electric PLC (Utilities).................................. 85,450 442,789
Sears Holdings (Merchandising)........................................... 893,000 1,501,746
Seeboard Electricity PLC (Utilities)..................................... 250,000 1,500,644
Shell Transport & Trading Co. (Energy Sources)........................... 179,000 2,120,116
Standard Chartered PLC (Financial Services).............................. 268,000 1,289,540
Tarmac PLC (Building Materials).......................................... 546,500 1,028,975
Tesco PLC (Merchandising)................................................ 390,000 1,754,184
Thorn EMI PLC (Appliances & Household Products).......................... 31,800 581,857
Tomkins (Multi-Industry)................................................. 241,000 907,531
</TABLE>
See Accompanying Notes.
23
<PAGE>
THE NON-U.S. EQUITY PORTFOLIO
SCHEDULE OF INVESTMENTS (UNAUDITED) (CONTINUED)
APRIL 30, 1995
- - --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
VALUE
SECURITY DESCRIPTION SHARES (NOTE 1A)
- - --------------------------------------------------------------------------- ----------- ------------
<S> <C> <C>
UNITED KINGDOM (CONTINUED)
Unilever PLC (Food & Household Products)................................. 35,000 $ 691,101
United Biscuits Holdings PLC (Food & Household Products)................. 198,900 1,117,092
Vickers PLC (Machinery & Engineering).................................... 328,500 999,139
Willis Corroon Group PLC (Insurance)..................................... 282,500 704,659
Yorkshire Water (Business & Public Services)............................. 185,000 1,625,523
Zeneca Group PLC (Health & Personal Care)................................ 90,000 1,308,577
------------
64,745,191
------------
TOTAL COMMON STOCKS (COST $462,505,225)................................ 487,393,659
------------
PREFERRED STOCKS (0.4%)
AUSTRIA (0.1%)
Creditanstalt Bankverein, 10.00 ATS (Banking)............................ 7,200 412,315
------------
FRANCE (0.0%)
Casino Guichard Perrachon, 5.25 FRF (Leisure & Tourism).................. 4,126 100,757
------------
GERMANY (0.3%)
GEA AG, 11.00 Dem (Machinery)............................................ 1,355 444,727
SAP AG, 9.00 Dem (Computer Software)..................................... 880 869,653
------------
1,314,380
------------
TOTAL PREFERRED STOCKS (COST $1,632,867) 1,827,452
------------
</TABLE>
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT
(IN HKD)
------------
<S> <C> <C>
CONVERTIBLE BONDS (5.0%)
HONG KONG (0.2%)
Amoy Properties IDR 5.50% due 12/29/49 (Real Estate)...................... 1,385,000 933,144
---------------
</TABLE>
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT
(IN YEN)
------------
<S> <C> <C>
JAPAN (4.8%)
Bot Cayman Finance 4.25% due 03/31/03 (Banking)........................... 450,000,000 6,171,536
Daido Hoxan Inc. 1.60% due 03/29/02 (Chemicals)........................... 58,000,000 676,385
Daiwa International Finance 5.65% due 08/30/96 (Banking).................. 1,750,000 2,664,375
Daiwa International Finance 2.00% due 03/31/98 (Banking).................. 150,000,000 1,854,138
Mitsubishi Bank 3.50% due 03/31/04 (Banking).............................. 2,000,000 2,180,000
NEC Corp. 1.90% due 03/30/01 (Electrical & Electronics)................... 130,000,000 1,573,273
Nippon Oil Co. 2.80% due 03/31/00 (Energy Sources)........................ 150,000,000 1,852,799
Ryobi Ltd. 2.80% due 03/29/02 (Metals).................................... 33,000,000 414,292
Sagami Railway 3.80% due 09/30/99 (Transportation)........................ 35,000,000 445,648
</TABLE>
See Accompanying Notes.
24
<PAGE>
THE NON U.S. EQUITY PORTFOLIO
SCHEDULE OF INVESTMENTS (UNAUDITED) (CONTINUED)
APRIL 30, 1995
- - --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT VALUE
SECURITY DESCRIPTION (IN YEN) (NOTE 1A)
- - ---------------------------------------------------------------------------- ------------ ---------------
<S> <C> <C>
Sakura Bank Ltd. 2.63% due 03/31/03 (Banking)............................. 1,500,000 $ 1,244,062
Sekisui House Ltd. 2.50% due 01/31/02 (Construction & Housing)............ 60,000,000 816,088
Toyota Motor Co. 1.70% due 05/31/96 (Automotive).......................... 75,000,000 1,044,208
Yamanouchi Pharmaceutical 1.25% due 03/31/14 (Health & Personal Care)..... 350,000,000 4,086,839
Yamato Transport 3.90% due 03/30/01 (Transportation)...................... 132,000,000 1,719,997
---------------
26,743,640
---------------
TOTAL CONVERTIBLE BONDS (COST $24,986,024) 27,676,784
---------------
WARRANTS (A) (0.1%)
FRANCE (0.0%)
LaGardere Groupe, Expiring 12/31/96 (Leisure & Tourism)................... 16,000 11,559
---------------
JAPAN (0.1%)
Kuraray Co. Ltd., Expiring 08/02/96 (Chemicals)........................... 200 155,000
Maeda Corp., Expiring 02/05/97 (Construction & Housing)................... 370 499,500
---------------
654,500
---------------
UNITED KINGDOM (0.0%)
British Tyre & Rubber Expiring 06/11/95 (Multi-Industry).................. 5,000 5,995
---------------
TOTAL WARRANTS (COST $997,724) 672,054
---------------
</TABLE>
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT
(IN US
DOLLARS)
------------
<S> <C> <C>
TIME DEPOSITS (5.3%)
UNITED STATES (5.3%)
State Street Bank (Banking) 5.75% due 05/01/95 (cost $29,419,000)......... 29,419,000 29,419,000
---------------
TOTAL INVESTMENTS (COST $519,540,840) (98.8%) 546,988,949
OTHER ASSETS NET OF LIABILITIES (1.2%) 6,879,782
---------------
NET ASSETS (100.00%) $ 553,868,731
---------------
---------------
</TABLE>
(A) Non-Income-Producing Security
The cost of investments for Federal Income Tax purposes at April 30, 1995,
was $519,668,598, the aggregate gross unrealized appreciation and
depreciation of investments was $40,855,561,and $13,535,210, respectively,
resulting in net unrealized appreciation of $27,320,351.
See Accompanying Notes.
25
<PAGE>
THE NON U.S. EQUITY PORTFOLIO
SCHEDULE OF INVESTMENTS (UNAUDITED) (CONTINUED)
APRIL 30, 1995
- - --------------------------------------------------------------------------------
INDUSTRY DIVERSIFICATION
<TABLE>
<CAPTION>
PERCENT OF
PORTFOLIO
-------------
<S> <C>
Banking............................................................................................ 20.7%
Electrical & Electronics........................................................................... 7.4%
Metals & Mining.................................................................................... 5.1%
Energy Sources..................................................................................... 4.9%
Automotive......................................................................................... 4.4%
Health & Personal Care............................................................................. 4.2%
Utilities.......................................................................................... 4.0%
Food & Household Products.......................................................................... 4.0%
Chemicals.......................................................................................... 3.9%
Merchandising...................................................................................... 3.8%
Transportation..................................................................................... 3.7%
Multi-Industry..................................................................................... 3.6%
Machinery & Engineering............................................................................ 3.1%
Financial Services................................................................................. 3.1%
Building & Contractors............................................................................. 2.9%
Insurance.......................................................................................... 2.6%
Retail............................................................................................. 2.1%
Wholesale & International Trade.................................................................... 1.8%
Leisure & Tourism.................................................................................. 1.6%
Broadcasting & Publishing.......................................................................... 1.6%
Telecommunications................................................................................. 1.4%
Engineering & Construction......................................................................... 1.3%
Real Estate........................................................................................ 1.2%
Beverages & Tobacco................................................................................ 1.2%
Materials & Commodities............................................................................ 1.1%
Business & Public Services......................................................................... 0.6%
Glass & Packaging.................................................................................. 0.6%
Pharmaceuticals.................................................................................... 0.5%
Industrial Components.............................................................................. 0.3%
Textile & Apparel.................................................................................. 0.3%
Commercial Services................................................................................ 0.3%
Forest Products.................................................................................... 0.2%
Various Industries................................................................................. 1.3%
</TABLE>
See Accompanying Notes.
26
<PAGE>
THE NON-U.S. EQUITY PORTFOLIO
STATEMENT OF ASSETS AND LIABILITIES (UNAUDITED)
APRIL 30, 1995
- - --------------------------------------------------------------------------------
<TABLE>
<S> <C>
ASSETS
Investments at Value (Cost $519,540,840) (Note 1a) $546,988,949
Foreign Currency at Value (Cost $12,035,929) 11,966,770
Cash 602
Receivable for Investments Sold 9,189,982
Dividends and Interest Receivable (Note 1d) 2,240,977
Unrealized Appreciation on Open Spot Foreign Currency Contracts (Note 1c) 1,829
Prepaid Expenses 2,021
------------
Total Assets 570,391,130
------------
LIABILITIES
Payable for Investments Purchased 13,493,384
Unrealized Depreciation on Open Forward Foreign Currency Contracts
(Note 1c) 1,450,621
Custody Fee Payable 606,231
Financial and Fund Accounting Services Fee Payable (Note 2c) 505,221
Advisory Fee Payable (Note 2a) 433,074
Fund Services Fee Payable (Note 2d) 4,427
Adminstration Fee Payable (Note 2b) 2,698
Accrued Expenses 26,743
------------
Total Liabilities 16,522,399
------------
NET ASSETS
Applicable to Investors Beneficial Interests $553,868,731
------------
------------
</TABLE>
See Accompanying Notes.
27
<PAGE>
THE NON-U.S. EQUITY PORTFOLIO
STATEMENT OF OPERATIONS (UNAUDITED)
FOR THE SIX MONTHS ENDED APRIL 30, 1995
- - --------------------------------------------------------------------------------
<TABLE>
<S> <C> <C>
INVESTMENT INCOME (NOTE 1D)
Dividends (Net of Foreign Withholding Tax of $466,259) $ 3,125,436
Interest (Net of Foreign Withholding Tax of $10,516) 1,035,666
-------------
Investment Income $ 4,161,102
EXPENSES
Advisory Fee (Note 2a) 1,334,988
Custodian Fees and Expenses 353,949
Financial and Fund Accounting Services Fees (Note 2c) 207,295
Professional Fees 29,733
Fund Services Fee (Note 2d) 22,668
Administration Fee (Note 2b) 14,216
Trustees Fees and Expenses (Note 2e) 3,825
Miscellaneous 4,948
-------------
Total Expenses 1,971,622
------------
Net Investment Income 2,189,480
NET REALIZED GAIN (LOSS) ON
Investments Transactions 5,427,112
Foreign Currency Contracts and Foreign Exchange Transactions (10,626,411)
-------------
Net Realized Loss (5,199,299)
NET CHANGE IN UNREALIZED APPRECIATION OF
Investments 3,387,821
Foreign Currency Contracts and Translations 1,185,340
-------------
Net Change in Unrealized Appreciation 4,573,161
------------
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS $ 1,563,342
------------
------------
</TABLE>
See Accompanying Notes.
28
<PAGE>
THE NON-U.S. EQUITY PORTFOLIO
STATEMENT OF CHANGES IN NET ASSETS (UNAUDITED)
- - --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
FOR THE SIX
MONTHS ENDED FOR THE FISCAL
APRIL 30, 1995 YEAR ENDED
(UNAUDITED) OCTOBER 31, 1994
---------------- -----------------
<S> <C> <C>
INCREASE (DECREASE) IN NET ASSETS
FROM OPERATIONS
Net Investment Income $ 2,189,480 $ 2,975,662
Net Realized Gain (Loss) on Investments and Foreign Currency
Transactions (5,199,299) 11,298,758
Net Change in Unrealized Appreciation of Investments and Foreign
Currency Translations 4,573,161 6,493,611
---------------- -----------------
Net Increase in Net Assets Resulting from Operations 1,563,342 20,768,031
---------------- -----------------
TRANSACTIONS IN INVESTORS' BENEFICIAL INTEREST
Contributions 205,141,829 343,552,141
Withdrawals (76,412,261) (124,114,838)
---------------- -----------------
Net Increase from Investors' Transactions 128,729,568 219,437,303
---------------- -----------------
Total Increase in Net Assets 130,292,910 240,205,334
NET ASSETS
Beginning of Period 423,575,821 183,370,487
---------------- -----------------
End of Period $ 553,868,731 $ 423,575,821
---------------- -----------------
---------------- -----------------
<CAPTION>
- - -------------------------------------------------------------------------------------------
<S> <C> <C>
SUPPLEMENTARY DATA
<CAPTION>
- - -------------------------------------------------------------------------------------------
FOR THE SIX
MONTHS ENDED FOR THE FISCAL
APRIL 30, 1995 YEAR ENDED
(UNAUDITED) OCTOBER 31, 1994
---------------- -----------------
<S> <C> <C>
Ratios to Average Net Assets
Expenses 0.89%* 0.95%
Net Investment Income 0.98%* 0.93%
Portfolio Turnover 28% 56%
<FN>
- - ------------------------
* Annualized.
</TABLE>
See Accompanying Notes.
29
<PAGE>
THE NON-U.S. EQUITY PORTFOLIO
NOTES TO FINANCIAL STATEMENTS (UNAUDITED)
APRIL 30, 1995
- - --------------------------------------------------------------------------------
1. ORGANIZATION AND SIGNIFICANT ACCOUNTING POLICIES
The Non-U.S. Equity Portfolio (the "Portfolio") is registered under the
Investment Company Act of 1940, as amended, (the "Act") as a no-load,
diversified, open-end management investment company which was organized as a
trust under the laws of the State of New York. The Portfolio commenced
operations on October 4, 1993 and received a contribution of certain assets
and liabilities, including securities, with a value of $160,213,973 on that
date from the Pierpont International Equity Fund, Inc. in exchange for a
beneficial interest in the Portfolio. At that date, net unrealized
appreciation of $11,116,204 was included in the contributed securities. The
Declaration of Trust permits the Trustees to issue an unlimited number of
beneficial interests in the Portfolio.
The following is a summary of the significant accounting policies of the
Portfolio:
a)The value of each security for which readily available market quotations
exists is based on a decision as to the broadest and most representative
market for such security. The value of such security will be based either
on the last sale price on a national securities exchange, or, in the
absence of recorded sales, at the readily available closing bid price on
such exchanges, or at the quoted bid price in the over-the-counter market.
Securities listed on a foreign exchange are valued at the last quoted sale
price available before the time when net assets are valued. Unlisted
securities are valued at the average of the quoted bid and asked prices in
the over-the-counter market. Securities or other assets for which market
quotations are not readily available are valued at fair value in
accordance with procedures established by the Portfolio's Trustees. Such
procedures include the use of independent pricing services, which use
prices based upon yields or prices of securities of comparable quality,
coupon, maturity and type; indications as to values from dealers; and
general market conditions. All portfolio securities with a remaining
maturity of less than 60 days are valued by the amortized cost method.
Trading in securities on most foreign exchanges and over-the-counter
markets is normally completed before the close of the domestic market and
may also take place on days on which the domestic market is closed. If
events materially affecting the value of foreign securities occur between
the time when the exchange on which they are traded closes and the time
when the Portfolio's net asset value is calculated, such securities will
be valued at fair value in accordance with procedures established by and
under the general supervision of the Portfolio's Trustees.
b)The books and records of the Portfolio are maintained in U.S. dollars. The
market value of investment securities, other assets and liabilities and
forward currency contracts stated in foreign currencies are translated at
the prevailing exchange rates at the end of the period. Purchases, sales,
income and expense are translated at the exchange rate prevailing on the
respective dates of such transactions. Translation gains and losses
resulting from changes in the exchange rate during the reporting period
and gains and losses realized upon settlement of foreign currency
transactions are reported in the Statement of Operations.
30
<PAGE>
THE NON-U.S. EQUITY PORTFOLIO
NOTES TO FINANCIAL STATEMENTS (UNAUDITED) (CONTINUED)
APRIL 30, 1995
- - --------------------------------------------------------------------------------
Since the net assets of the Portfolio are presented at the exchange rates
and market values prevailing at the end of the period, the Portfolio does
not isolate the portion of the results of operations arising as a result
of changes in foreign exchange rates from the fluctuations arising from
changes in the market prices of securities during the period.
c)The Portfolio may enter into forward and spot foreign currency contracts
to protect securities and related receivables and payables against
fluctuations in future foreign currency rates. A forward contract is an
agreement to buy or sell currencies of different countries on a specified
future date at a specified rate. Risks associated with such contracts
include the movement in the value of the foreign currency relative to the
U.S. dollar and the ability of the counterparty to perform.
The market value of the contract will fluctuate with changes in currency
exchange rates. Contracts are valued daily based on procedures established
by and under the general supervision of the Portfolio's Trustees and the
change in the market value is recorded by the Portfolio as unrealized
appreciation or depreciation of foreign forward and spot currency contract
translations. At April 30, 1995 the Portfolio had open foreign forward and
spot currency contracts as follows:
SUMMARY OF OPEN CONTRACTS
<TABLE>
<CAPTION>
U.S. DOLLAR NET UNREALIZED
VALUE AT APPRECIATION
FOREIGN CURRENCY SALE CONTRACTS PROCEEDS 04/30/95 (DEPRECIATION)
- - ------------------------------------------------------------- ------------- ------------- ---------------
<S> <C> <C> <C>
Japanese Yen, 7,256,674,039, expiring 07/11/95 $ 85,553,808 $ 87,004,429 $ (1,450,621)
Malaysian Ringgit, 1,143,272, expiring 05/02/95 463,652 462,489 1,163
<CAPTION>
FOREIGN CURRENCY BUY CONTRACTS COST
- - ------------------------------------------------------------- -------------
<S> <C> <C> <C>
Singapore Dollar, 647,026, expiring 05/02/95 463,651 464,317 666
---------------
Net Unrealized Depreciation on Foreign Forward and Spot
Currency Contracts $ (1,448,792)
---------------
</TABLE>
d)Securities transactions are recorded on a trade date basis. Dividend
income is recorded on the ex-dividend date or at the time that the
relevant ex-dividend date and amount becomes known. Interest income, which
includes the amortization of premiums and discounts, if any, is recorded
on an accrual basis. For financial and tax reporting purposes, realized
gains and losses are determined on the basis of specific lot
identification.
e)The Portfolio will be treated as a partnership for federal income tax
purposes. As such, each investor in the Portfolio will be taxable on its
share of the Portfolio's ordinary income and capital gains. It is intended
that the Portfolio's assets will be managed in such a way that an investor
in the Portfolio will be able to satisfy the requirements of Subchapter M
of the Internal Revenue Code. The Portfolio earns foreign income which may
be subject to foreign withholding taxes at various rates.
31
<PAGE>
THE NON-U.S. EQUITY PORTFOLIO
NOTES TO FINANCIAL STATEMENTS (UNAUDITED) (CONTINUED)
APRIL 30, 1995
- - --------------------------------------------------------------------------------
2. TRANSACTIONS WITH AFFILIATES
a)The Portfolio has an investment advisory agreement with Morgan Guaranty
Trust Company of New York ("Morgan"). Under the terms of the investment
advisory agreement, the Portfolio pays Morgan at an annual rate of 0.60%
of the Portfolio's average daily net assets. For the six months ended
April 30, 1995 such fees amounted to $1,334,988.
b)The Portfolio retains Signature Broker-Dealer Services, Inc. ("Signature")
to serve as Administrator and exclusive placement agent. Signature
provides administrative services necessary for the operations of the
Portfolio, furnishes office space and facilities required for conducting
the business of the Portfolio and pays the compensation of the Portfolio's
officers affiliated with Signature. The agreement provides for a fee to be
paid to Signature at an annual rate determined by the following schedule:
0.01% of the first $1 billion of the aggregate average daily net assets of
the Portfolio and the other portfolios subject to the Administrative
Services Agreement, 0.008% of the next $2 billion of such net assets,
0.006% of the next $2 billion of such net assets, and 0.004% of such net
assets in excess of $5 billion. The daily equivalent of the fee rate is
applied to the daily net assets of the Portfolio. For the six months ended
April 30, 1995 such expenses amounted to $14,216.
c)The Portfolio has a Financial and Fund Accounting Services Agreement
("Services Agreement") with Morgan under which Morgan receives a fee,
based on the percentages described below, for overseeing certain aspects
of the administration and operation of the Portfolio. The Services
Agreement is also designed to provide an expense limit for certain
expenses of the Portfolio. If total expenses of the Portfolio, excluding
the advisory fee, custody expenses, fund services fee, and brokerage
costs, exceed the expense limit of 0.15% of the Portfolio's average daily
net assets up to $200 million, 0.10% on the next $200 million of average
daily net assets, 0.05% of the next $200 million of average daily assets
and 0.03% of net assets thereafter, Morgan will reimburse the Portfolio
for the excess expense amount and receive no fee. Should such expenses be
less than the expense limit, Morgan's fee would be limited to the
difference between such expenses and the fee calculated under the Services
Agreement. For the six months ended April 30, 1995, Morgan's fee amounted
to $207,295.
d)The Portfolio has a Fund Services Agreement with Pierpont Group, Inc.
("Group") to assist the Trustees in exercising their overall supervisory
responsibilities for the Portfolio's affairs. The Trustees of the
Portfolio represent all the existing shareholders of Group. The
Portfolio's allocated portion of Group's costs in performing its services
amounted to $22,668 for the six months ended April 30, 1995.
e)An aggregate annual fee of $65,000 is paid to each Trustee for serving as
a Trustee of the Pierpont Funds, The JPM Institutional Funds, and their
corresponding Portfolios. The Trustees' Fees and Expenses shown in the
financial statements represents the Portfolio's allocated portion of the
total fees and expenses. Prior to April 1, 1995, an aggregate annual fee
of $55,000 was paid to each Trustee. The Trustee who serves as Chairman
and Chief Executive Officer of these Funds and
32
<PAGE>
THE NON-U.S. EQUITY PORTFOLIO
NOTES TO FINANCIAL STATEMENTS (UNAUDITED) (CONTINUED)
APRIL 30, 1995
- - --------------------------------------------------------------------------------
Portfolios also serves as Chairman of Group and received compensation and
employee benefits from Group in his role as Group's Chairman. The
allocated portion of such compensation and benefits included in the Fund
Services Fee shown in the financial statements was $2,700.
3. INVESTMENT TRANSACTIONS
Investment transactions (excluding short-term investments) for the period
were as follows:
<TABLE>
<CAPTION>
COST OF PROCEEDS
PURCHASES FROM SALES
- - -------------- --------------
<S> <C>
$231,119,249 $118,404,314
</TABLE>
33
