<PAGE>
THE INTERNATIONAL EQUITY PORTFOLIO
SCHEDULE OF INVESTMENTS (UNAUDITED)
APRIL 30, 1999
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SECURITY DESCRIPTION SHARES VALUE
- ------------------------------------------------- ---------- -------------
<S> <C> <C>
COMMON STOCK (94.1%)
AUSTRALIA (2.9%)
AMP Ltd. (Insurance)(s).......................... 66,685 $ 780,058
Australia & New Zealand Banking Group Ltd.
(Banking)(s)................................... 176,000 1,396,242
Brambles Industries Ltd. (Commercial
Services)(s)................................... 23,937 704,459
Broken Hill Proprietary Co. Ltd. (Metals &
Mining)(s)..................................... 100,805 1,141,368
Colonial Ltd. (Financial Services)(s)............ 155,100 584,895
Foster's Brewing Group Ltd. (Food, Beverages &
Tobacco)(s).................................... 194,705 568,817
Lend Lease Corp. Ltd. (Financial Services)(s).... 84,000 1,134,196
National Australia Bank Ltd. (Banking)(s)........ 117,805 2,296,996
News Corp. Ltd. (Broadcasting & Publishing)(s)... 18,600 156,113
Pioneer International Ltd. (Building
Materials)(s).................................. 361,672 884,495
Southcorp Ltd. (Food, Beverages & Tobacco)(s).... 204,200 839,076
Telstra Corp. Ltd. (Telecommunication
Services)(s)+.................................. 503,000 2,733,605
Woolworths Ltd. (Retail)(s)...................... 205,900 655,015
-------------
13,875,335
-------------
AUSTRIA (0.7%)
Bank Austria AG (Banking)(s)..................... 57,783 3,589,044
-------------
BELGIUM (0.4%)
Delhaize-Le Lion SA (Retail)(s).................. 13,918 1,219,197
Tractebel (Electric)(s).......................... 6,600 908,422
-------------
2,127,619
-------------
DENMARK (0.5%)
Danisco A/S (Food, Beverages & Tobacco)(s)....... 39,300 1,842,197
GN Store Nord A/S (Telecommunications-
Equipment)(s).................................. 22,200 759,122
-------------
2,601,319
-------------
<CAPTION>
SECURITY DESCRIPTION SHARES VALUE
- ------------------------------------------------- ---------- -------------
<S> <C> <C>
FINLAND (1.3%)
MeritaNordbanken OYJ (Banking)(s)................ 123,780 $ 739,887
Nokia OYJ (Telecommunications-Equipment)(s)...... 29,000 2,238,154
Sampo Insurance Co. PLC (Insurance)(s)........... 21,300 671,751
Stora Enso OYJ, A Shares (Forest Products &
Paper)(s)...................................... 71,262 800,670
Stora Enso OYJ, R Shares (Forest Products &
Paper)(s)...................................... 137,262 1,574,857
-------------
6,025,319
-------------
FRANCE (11.1%)
Alcatel Alsthom (Telecommunications-
Equipment)(s).................................. 6,817 838,043
Alstom SA (Railroads)(s)+........................ 31,328 1,027,451
AXA (Insurance)(s)............................... 8,914 1,152,419
Canal Plus (Broadcasting & Publishing)(s)........ 3,058 851,510
Carrefour SA (Retail)(s)......................... 3,740 2,967,560
Castorama Dubois Investissement SA (Retail)(s)... 6,400 1,533,610
Compagnie de Saint Gobain SA (Building
Materials)(s).................................. 13,731 2,360,599
Compagnie Financiere de Paribas (Financial
Services)(s)................................... 35,990 3,830,421
Compagnie Generale des Establishments Michelin-B
(Automotive Supplies).......................... 14,500 658,867
Elf Aquitaine SA (Oil-Services)(s)............... 41,341 6,429,319
France Telecom SA (Telecommunication
Services)(s)................................... 11,430 924,465
Groupe Danone (Food, Beverages & Tobacco)(s)..... 12,400 3,319,012
Lagardere S.C.A. (Multi - Industry)(s)........... 35,805 1,419,744
Louis Vuitton Moet Hennessy (Food, Beverages &
Tobacco)(s).................................... 6,500 1,745,306
Renault SA (Automotive)(s)....................... 16,825 705,595
Rhodia SA (Chemicals)(s)+........................ 63,715 1,139,187
Rhone-Poulenc SA, A Shares
(Pharmaceuticals)(s)........................... 39,600 1,885,273
Sanofi SA (Pharmaceuticals)(s)................... 22,666 3,556,171
</TABLE>
The Accompanying Notes are an Integral Part of the Financial Statements.
16
<PAGE>
THE INTERNATIONAL EQUITY PORTFOLIO
SCHEDULE OF INVESTMENTS (UNAUDITED) (CONTINUED)
APRIL 30, 1999
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SECURITY DESCRIPTION SHARES VALUE
- ------------------------------------------------- ---------- -------------
<S> <C> <C>
FRANCE (CONTINUED)
SEITA (Food, Beverages & Tobacco)................ 7,849 $ 473,321
Societe Generale (Banking)(s).................... 13,950 2,500,082
STMicroelectronics NV (Electronics)(s)+.......... 16,365 1,707,102
Total SA, B Shares (Oil-Services)(s)............. 51,573 7,071,215
Usinor SA (Metals & Mining)(s)................... 43,104 667,614
Vivendi (Utilities)(s)........................... 21,242 4,968,792
-------------
53,732,678
-------------
GERMANY (9.8%)
BASF AG (Chemicals)(s)........................... 62,713 2,750,102
Bayerische Hypo-Und Vereinsbank AG
(Banking)(s)................................... 58,411 3,812,821
Bilfinger & Berger Bau AG (Construction &
Housing)(s).................................... 41,740 1,004,617
DaimlerChrysler AG (Automotive)(s)............... 45,851 4,533,094
Deutsche Bank AG (Banking)....................... 22,541 1,278,217
Dresdner Bank AG (Banking)(s).................... 39,596 1,709,142
Fresenius Medical Care AG (Medical
Supplies)(s)................................... 6,920 371,909
Hochtief AG (Construction & Housing)(s).......... 20,419 788,486
Hoechst AG (Holding Companies)(s)................ 47,454 2,251,655
Karstadt AG (Retail)(s).......................... 5,671 2,552,853
Mannesmann AG (Diversified Manufacturing)(s)..... 34,721 4,576,958
Merck KgAA (Pharmaceuticals)(s).................. 19,600 663,549
Muenchener Rueckversicherungs-Gesellschaft AG
(Insurance)(s)................................. 21,332 4,287,971
Munchener Rueckversicherungs-Gesellschaft AG-New
Shares (Insurance)(s)+......................... 16,132 3,208,579
RWE AG (Utilities)(s)............................ 45,693 2,093,169
SAP AG (Computer Software)(s).................... 4,050 1,298,268
SGL Carbon AG (Chemicals)(s)..................... 17,600 969,170
Siemens AG (Electrical Equipment)(s)............. 53,270 3,945,003
SKW Trostberg AG (Chemicals)(s).................. 31,000 751,041
VEBA AG (Utilities)(s)........................... 85,238 4,680,231
-------------
47,526,835
-------------
<CAPTION>
SECURITY DESCRIPTION SHARES VALUE
- ------------------------------------------------- ---------- -------------
<S> <C> <C>
HONG KONG (0.3%)
Hongkong Electric Holdings Ltd. (Electric)(s).... 124,500 $ 396,783
Hutchison Whampoa Ltd. (Multi - Industry)(s)..... 65,000 582,888
Sun Hung Kai Properties Ltd. (Real Estate)(s).... 71,000 622,952
-------------
1,602,623
-------------
IRELAND (0.9%)
CRH PLC (Building Materials)(s).................. 64,900 1,280,531
Greencore Group PLC (Food, Beverages &
Tobacco)(s).................................... 196,000 746,492
Irish Life & Permanent PLC (Financial
Services)(s)................................... 71,498 1,036,289
Jefferson Smurfit Group PLC (Forest Products &
Paper)(s)...................................... 375,515 1,024,976
-------------
4,088,288
-------------
ITALY (3.8%)
Assicurazioni Generali SPA (Insurance)(s)........ 59,461 2,318,122
Banca Fideuram SPA (Financial Services)(s)....... 373,303 2,120,813
ENI SPA (Oil-Services)(s)........................ 363,300 2,394,529
La Rinascente SPA (Retail)(s).................... 249,800 1,088,821
Mediaset SPA (Broadcasting & Publishing)(s)...... 127,800 1,108,693
Mediolanum SPA (Financial Services)(s)........... 220,000 1,454,686
Telecom Italia SPA (Telecommunication
Services)(s)................................... 389,647 4,151,141
Telecom Italia SPA - RNC (Telecommunication
Services)(s)................................... 521,650 2,809,077
Unicredito Italiano SPA (Financial
Services)(s)................................... 156,800 796,258
-------------
18,242,140
-------------
JAPAN (19.4%)
Bank of Tokyo - Mitsubishi Ltd. (Banking)(s)..... 240,000 3,542,856
Asahi Bank Ltd. (Banking)(s)..................... 280,000 1,480,211
Bridgestone Corp. (Chemicals)(s)................. 59,000 1,581,752
Citizen Watch Co. Ltd. (Retail).................. 1,000 8,294
</TABLE>
The Accompanying Notes are an Integral Part of the Financial Statements.
17
<PAGE>
THE INTERNATIONAL EQUITY PORTFOLIO
SCHEDULE OF INVESTMENTS (UNAUDITED) (CONTINUED)
APRIL 30, 1999
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SECURITY DESCRIPTION SHARES VALUE
- ------------------------------------------------- ---------- -------------
<S> <C> <C>
JAPAN (CONTINUED)
Dai Nippon Printing Co. Ltd. (Business & Public
Services)(s)................................... 106,000 $ 1,680,209
DDI Corp. (Telecommunications)(s)................ 248 1,232,091
Ebara Corp. (Machinery)(s)....................... 124,000 1,507,389
Fanuc Ltd. (Machinery)(s)........................ 42,300 1,842,808
Fujitsu Ltd. (Computer Systems)(s)............... 135,000 2,312,935
Hitachi Ltd. (Electrical Equipment)(s)........... 126,000 920,499
Honda Motor Co. Ltd. (Automotive)(s)............. 77,000 3,393,226
Ind Bank Japan (Banking)(s)...................... 146,000 1,217,061
Ito - Yokado Co. Ltd. (Retail)(s)................ 37,000 2,272,176
Japan Tobacco, Inc. (Food, Beverages &
Tobacco)(s).................................... 197 1,980,541
Kawasaki Steel Corp. (Metals & Mining)(s)........ 849,000 1,628,844
Kyocera Corp. (Electronics)(s)................... 44,100 2,619,516
Matsushita Electric Industrial Co. Ltd.
(Electronics)(s)............................... 139,000 2,643,486
Minebea Co. Ltd. (Capital Goods)(s).............. 150,000 1,451,475
Mitsubishi Chemical Corp. (Chemicals)(s)......... 1,311,000 4,052,895
Mitsubishi Corp. (Wholesale & International
Trade)(s)...................................... 4,000 26,474
Mitsubishi Estate Co. Ltd. (Real Estate)(s)...... 112,000 1,145,698
Mitsui Mining & Smelting Co. Ltd. (Metals &
Mining)(s)..................................... 30,000 155,327
Mitsui Trust & Banking Co. Ltd. (Banking)(s)..... 352,000 569,162
NAMCO Ltd. (Entertainment, Leisure & Media)(s)... 52,900 1,196,619
Nichiei Co. Ltd. (Financial Services)(s)......... 20,300 1,760,243
Nippon Telegraph & Telephone Corp.
(Telecommunications)(s)........................ 675 7,351,626
Nippon Yusen Kabushiki Kaisha (Transport &
Services)(s)................................... 713,000 2,777,658
Nishimatsu Construction Co. Ltd. (Construction &
Housing)(s).................................... 423,000 2,459,439
Osaka Gas Co. Ltd. (Natural Gas)(s).............. 417,000 1,432,373
Ricoh Co. Ltd. (Electrical Equipment)(s)......... 183,000 1,763,134
Rohm Co. Ltd. (Electronics)(s)................... 25,000 3,016,052
Sekisui Chemical Co. Ltd. (Chemicals)(s)......... 107,000 715,357
<CAPTION>
SECURITY DESCRIPTION SHARES VALUE
- ------------------------------------------------- ---------- -------------
<S> <C> <C>
JAPAN (CONTINUED)
Shohkoh Fund & Co. Ltd. (Financial
Services)(s)................................... 4,260 $ 2,498,296
Snow Brand Milk Products Co. Ltd. (Food,
Beverages & Tobacco)(s)........................ 165,000 857,061
Sony Corp. (Electronics)(s)...................... 15,500 1,447,914
Sony Music Entertainment, Inc. (Entertainment,
Leisure & Media)(s)............................ 50,000 3,644,396
Sumitomo Rubber Industries Ltd. (Automotive
Supplies)(s)................................... 147,000 966,770
Sumitomo Bakelite Co. Ltd. (Chemicals)(s)........ 64,000 480,424
Suzuki Motor Corp. (Automotive)(s)............... 150,000 2,136,370
Taiheiyo Cement Corp. (Building Materials)(s).... 239,000 772,897
Takashimaya Co. Ltd. (Retail)(s)................. 77,000 628,972
Takeda Chemical Industries (Chemicals)(s)........ 86,000 3,739,402
Takefuji Corp. (Financial Services)(s)........... 33,100 2,745,361
The Sanwa Bank Ltd. (Banking)(s)................. 78,000 875,660
Tokai Bank Ltd. (Banking)(s)..................... 116,000 758,034
Tokyo Electric Power Co., Inc. (Electric)(s)..... 76,000 1,623,641
Tokyo Gas Co. Ltd. (Natural Gas)(s).............. 193,000 509,336
Tokyo Steel Manufacturing Co. Ltd. (Metals &
Mining)(s)..................................... 153,000 817,802
Tostem Corp. (Construction & Housing)(s)......... 81,000 1,503,125
Toyota Motor Corp. Ltd. (Automotive)(s).......... 107,000 3,038,924
West Japan Railway Co. (Railroads)(s)............ 592 2,455,066
Yamanouchi Pharmaceutical Co. Ltd.
(Pharmaceuticals)(s)........................... 5,000 158,343
York - Benimaru Co. Ltd. (Retail)(s)............. 13,500 525,924
-------------
93,921,144
-------------
NETHERLANDS (7.1%)
ABN Amro Holding NV (Banking)(s)................. 155,000 3,697,812
Aegon NV (Insurance)(s).......................... 4,787 459,596
Akzo Nobel NV (Chemicals)(s)..................... 23,500 1,062,847
</TABLE>
The Accompanying Notes are an Integral Part of the Financial Statements.
18
<PAGE>
THE INTERNATIONAL EQUITY PORTFOLIO
SCHEDULE OF INVESTMENTS (UNAUDITED) (CONTINUED)
APRIL 30, 1999
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SECURITY DESCRIPTION SHARES VALUE
- ------------------------------------------------- ---------- -------------
<S> <C> <C>
NETHERLANDS (CONTINUED)
Equant NV (Information Processing)(s)+........... 9,400 $ 854,255
Heineken NV (Food, Beverages & Tobacco)(s)....... 52,270 2,626,714
ING Groep NV (Financial Services)(s)............. 112,810 6,957,974
Koninklijke Ahold NV (Retail)(s)................. 42,221 1,570,075
Koninklijke Numico NV (Food, Beverages &
Tobacco)(s).................................... 37,200 1,401,069
KPN NV (Telecommunication Services)(s)........... 44,622 1,864,716
Laurus NV (Retail)(s)............................ 35,949 773,959
Philips Electronics NV (Electronics)(s).......... 62,673 5,403,868
Royal Dutch Petroleum Co. (Oil-Services)(s)...... 39,170 2,283,346
TNT Post Group NV (Transport & Services)(s)...... 14,296 385,675
United Pan-Europe Communications NV
(Telecommunications)(s)+....................... 22,610 1,170,900
Vedior NV (Business & Public Services)(s)........ 67,079 1,511,586
Vendex NV (Retail)(s)............................ 51,357 1,279,550
Wolters Kluwer NV (Broadcasting &
Publishing)(s)................................. 25,764 1,122,993
-------------
34,426,935
-------------
NEW ZEALAND (0.6%)
Fletcher Challenge Paper Division Ltd. (Forest
Products & Paper)(s)........................... 961,800 898,781
Telecom Corp. of New Zealand Ltd.
(Telecommunications)(s)........................ 397,200 2,067,021
-------------
2,965,802
-------------
NORWAY (0.1%)
Nycomed Amersham PLC (Medical Supplies)(s)....... 82,776 672,411
-------------
<CAPTION>
SECURITY DESCRIPTION SHARES VALUE
- ------------------------------------------------- ---------- -------------
<S> <C> <C>
PORTUGAL (0.8%)
Banco Pinto & Sotto Mayor SA (Banking)(s)........ 150,339 $ 2,807,262
Portugal Telecom SA (Telecommunications)(s)...... 21,890 913,607
-------------
3,720,869
-------------
SINGAPORE (0.8%)
Development Bank of Singapore Ltd. (Banking)..... 148,000 1,573,076
City Developments Ltd. (Real Estate)(s).......... 172,000 1,147,684
Creative Technology Ltd. (Computer
Peripherals)(s)................................ 15,000 188,663
Singapore Press Holdings Ltd. (Broadcasting &
Publishing)(s)................................. 59,000 870,979
-------------
3,780,402
-------------
SPAIN (2.2%)
Actividades de Construction y Servicios SA
(Construction & Housing)(s).................... 22,935 689,588
Banco Santander Central Hispano SA
(Banking)(s)................................... 64,620 1,405,584
Endesa SA (Electric)(s).......................... 105,900 2,357,265
Iberdrola SA (Electric)(s)....................... 99,400 1,393,378
Indra Sistemas SA (Electronics)(s)............... 4,560 43,901
Telefonica SA (Telecommunications)(s)+........... 99,489 4,668,048
-------------
10,557,764
-------------
SWEDEN (2.3%)
ABB AB, A Shares (Machinery)(s).................. 102,300 1,429,148
Autoliv, Inc. (SDR) (Automotive Supplies)(s)..... 90,399 3,149,161
Ericsson LM, B Shares (Telecommunications-
Equipment)(s).................................. 194,900 5,132,739
Skandia Forsakrings AB (Insurance)(s)............ 78,736 1,525,895
-------------
11,236,943
-------------
</TABLE>
The Accompanying Notes are an Integral Part of the Financial Statements.
19
<PAGE>
THE INTERNATIONAL EQUITY PORTFOLIO
SCHEDULE OF INVESTMENTS (UNAUDITED) (CONTINUED)
APRIL 30, 1999
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SECURITY DESCRIPTION SHARES VALUE
- ------------------------------------------------- ---------- -------------
<S> <C> <C>
SWITZERLAND (6.7%)
Nestle SA (Food, Beverages & Tobacco)(s)......... 2,585 $ 4,793,225
Novartis AG (Pharmaceuticals)(s)................. 2,815 4,128,797
Roche Holding AG (Pharmaceuticals)(s)............ 637 7,506,168
SGS-Thomson Microelectronics NV
(Electronics)(s)............................... 790 710,893
Swisscom AG (Telecommunication Services)(s)+..... 11,000 4,046,105
UBS AG (Banking)(s).............................. 19,375 6,592,162
Zurich Allied AG (Insurance)(s).................. 7,071 4,565,525
-------------
32,342,875
-------------
UNITED KINGDOM (22.4%)
Allied Zurich PLC (Insurance)(s)+................ 105,550 1,400,356
AstraZeneca Group PLC (Pharmaceuticals)(s)....... 78,101 3,063,272
Barclays PLC (Banking)(s)........................ 97,000 3,089,237
Bass PLC (Food, Beverages & Tobacco)(s).......... 86,628 1,361,323
BG PLC (Gas Exploration)(s)...................... 229,000 1,290,496
Billiton PLC (Metals & Mining)(s)................ 311,300 1,058,837
British Aerospace PLC (Aerospace)(s)............. 162,900 1,219,627
British Airways PLC (Airlines)(s)................ 62,800 498,241
British American Tobacco PLC (Food, Beverages &
Tobacco)(s).................................... 109,350 922,578
British Petroleum Co. PLC (Oil-Services)(s)...... 522,656 9,930,042
British Sky Broadcasting Group PLC (Broadcasting
& Publishing)(s)............................... 144,000 1,263,607
British Telecommunications PLC
(Telecommunications)(s)........................ 301,700 5,042,267
Burmah Castrol PLC (Oil-Production)(s)........... 30,200 510,563
Cable & Wireless Communications PLC
(Telecommunications)(s)........................ 338,600 4,854,830
Cadbury Schweppes PLC (Food, Beverages &
Tobacco)(s).................................... 90,500 1,207,970
Carlton Communications (Entertainment, Leisure &
Media)(s)...................................... 93,900 907,887
Compass Group PLC (Food, Beverages &
Tobacco)(s).................................... 233,400 2,405,105
<CAPTION>
SECURITY DESCRIPTION SHARES VALUE
- ------------------------------------------------- ---------- -------------
<S> <C> <C>
UNITED KINGDOM (CONTINUED)
Diageo PLC (Food, Beverages & Tobacco)(s)........ 148,161 $ 1,708,048
Glaxo Wellcome PLC (Pharmaceuticals)(s).......... 222,500 6,584,589
Glynwed International PLC
(Metals & Mining)(s)........................... 436,200 1,559,164
Great Universal Stores PLC (Retail)(s)........... 151,900 1,746,261
Hays PLC (Commercial Services)(s)................ 103,100 1,145,410
HSBC Holdings PLC (75p) (Banking)(s)............. 133,700 5,112,675
Invensys PLC (Diversified Manufacturing)(s)...... 92,500 470,633
Kingfisher PLC (Retail)(s)....................... 164,200 2,453,433
Lloyds TSB Group PLC (Banking)(s)................ 611,150 9,859,813
MEPC PLC (Real Estate)(s)........................ 163,565 1,206,171
MFI Furniture Group PLC (Household
Products)(s)................................... 889,334 644,363
National Power PLC (Electric)(s)................. 208,589 1,682,605
Northern Foods PLC (Food, Beverages &
Tobacco)(s).................................... 264,200 518,974
Nycomed Amersham PLC (Medical Supplies)(s)....... 60,264 493,888
Ocean Group PLC (Transport & Services)(s)........ 56,700 894,669
Pearson PLC (Broadcasting & Publishing)(s)....... 74,000 1,572,747
Pilkington PLC (Building Materials)(s)........... 669,000 877,883
PowerGen PLC (Electric)(s)....................... 33,000 361,705
Prudential Corp. PLC (Insurance)(s).............. 194,000 2,761,259
Racal Electronic PLC (Telecommunications-
Equipment)(s).................................. 166,600 1,150,762
RMC Group PLC (Building Materials)(s)............ 89,000 1,347,011
Royal & Sun Alliance Insurance Group PLC
(Insurance)(s)................................. 215,000 1,860,673
Royal Bank of Scotland Group PLC (Banking)(s).... 74,300 1,756,176
Sainsbury J. PLC (Retail)(s)..................... 280,000 1,779,645
Shell Transport & Trading Co. PLC
(Oil-Services)(s).............................. 127,200 954,391
Smith & Nephew PLC (Medical Supplies)(s)......... 128,000 327,688
</TABLE>
The Accompanying Notes are an Integral Part of the Financial Statements.
20
<PAGE>
THE INTERNATIONAL EQUITY PORTFOLIO
SCHEDULE OF INVESTMENTS (UNAUDITED) (CONTINUED)
APRIL 30, 1999
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SECURITY DESCRIPTION SHARES VALUE
- ------------------------------------------------- ---------- -------------
<S> <C> <C>
UNITED KINGDOM (CONTINUED)
SmithKline Beecham PLC (Pharmaceuticals)(s)...... 279,100 $ 3,693,897
Tate & Lyle PLC (Food,
Beverages & Tobacco)(s)........................ 85,000 585,071
Tesco PLC (Retail)(s)............................ 189,700 564,293
TI Group PLC (Diversified Manufacturing)......... 44,227 370,292
Tomkins PLC (Multi - Industry)(s)................ 316,300 1,344,486
Unilever PLC (Food, Beverages & Tobacco)(s)...... 173,400 1,542,533
Vickers PLC (Capital Goods)(s)................... 266,166 711,400
Vodafone Group PLC (Telecommunications)(s)....... 371,700 6,852,534
Williams PLC (Diversified Manufacturing)(s)...... 95,000 657,726
Woolwich (Financial Services)(s)................. 159,000 1,020,184
-------------
108,199,290
-------------
TOTAL COMMON STOCK (COST $352,116,546)......... 455,235,635
-------------
</TABLE>
<TABLE>
<S> <C> <C>
CONVERTIBLE PREFERRED STOCKS (0.1%)
JAPAN (0.1%)
AB International Cayman Trust, 0.500% (Banking)
(COST $340,223)................................ 56,000,000 592,319
-------------
</TABLE>
<TABLE>
<S> <C> <C>
PREFERRED STOCK (1.0%)
AUSTRALIA (0.4%)
News Corp. Ltd.
(Broadcasting & Publishing).................... 238,463 1,866,803
-------------
GERMANY (0.6%)
ProSieben Media AG (Broadcasting & Publishing)... 22,360 1,052,685
Volkswagen AG (Automotive)....................... 44,061 1,852,926
-------------
2,905,611
-------------
TOTAL PREFERRED STOCK (COST $4,841,311)........ 4,772,414
-------------
</TABLE>
<TABLE>
<CAPTION>
SECURITY DESCRIPTION SHARES VALUE
- ------------------------------------------------- ------------- -------------
RIGHTS (0.0%)
<S> <C> <C>
SPAIN (0.0%)
Telefonica SA+ (Telecommunications)
(COST $91,751)................................. 99,489 $ 92,624
-------------
</TABLE>
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT{.}
----------------
<S> <C> <C>
CONVERTIBLE BONDS (1.1%)
JAPAN (1.1%)
Nichiei Construction Co. Ltd., 1.75% due 03/31/14
(Construction & Housing)....................... JPY 48,000,000 506,697
Sanwa International Finance Trust, 1.25% due
07/31/05 (Financial Services).................. JPY 204,000,000 1,922,733
Yamanouchi Pharmaceutical Co. Ltd., 1.25% due
03/31/14 (Commercial Services)................. JPY 180,000,000 2,857,709
-------------
TOTAL CONVERTIBLE BONDS (COST $3,956,675)...... 5,287,139
-------------
</TABLE>
<TABLE>
<S> <C> <C>
SHORT-TERM INVESTMENTS (0.8%)
EURO DOLLAR TIME DEPOSITS (0.1%)
State Street Bank, 4.00% due 11/02/98............ 341,000 341,000
-------------
</TABLE>
The Accompanying Notes are an Integral Part of the Financial Statements.
21
<PAGE>
THE INTERNATIONAL EQUITY PORTFOLIO
SCHEDULE OF INVESTMENTS (UNAUDITED) (CONTINUED)
APRIL 30, 1999
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PRINCIPAL
SECURITY DESCRIPTION AMOUNT{.} VALUE
-------------------------- ---------------- -------------
<S> <C> <C>
U.S. TREASURY OBLIGATIONS (0.7%)
U.S. Treasury Bills, 4.57%(y) due 07/15/99(s).... 3,560,000 $ 3,528,332
-------------
TOTAL SHORT-TERM INVESTMENTS (COST
$3,869,332)................................... 3,869,332
-------------
TOTAL INVESTMENTS (COST $365,215,839) (97.1%)......................
469,849,463
OTHER ASSETS IN EXCESS OF LIABILITIES (2.9%).......................
13,939,529
-------------
NET ASSETS (100.0%)................................................ $ 483,788,992
-------------
-------------
</TABLE>
- ------------------------------
Note: Based on the cost of investments of $368,237,595 for federal income tax
purposes at April 30, 1999, the aggregate gross unrealized appreciation and
depreciation was $115,668,800 and $14,056,932, respectively, resulting in a net
unrealized appreciation of investments of $101,611,868.
+ - Non-income producing security.
{.} Denominated in United States Dollar unless otherwise indicated.
(s) - Security is fully or partially segregated with custodian as collateral for
futures contracts or with broker as initial margin for futures contracts.
$175,394,044 of the market value has been segregated.
(y) - Yield to maturity.
SDR - Swedish Depositary Receipt.
JPY - Japanese Yen.
The Accompanying Notes are an Integral Part of the Financial Statements.
22
<PAGE>
THE INTERNATIONAL EQUITY PORTFOLIO
SCHEDULE OF INVESTMENTS (UNAUDITED) (CONTINUED)
APRIL 30, 1999
- --------------------------------------------------------------------------------
INDUSTRY DIVERSIFICATION
<TABLE>
<CAPTION>
PERCENT OF
TOTAL INVESTMENTS
-----------------
<S> <C>
Banking........................................... 13.3%
Telecommunications................................ 7.3%
Food, Beverages & Tobacco......................... 6.7%
Pharmaceuticals................................... 6.6%
Oil - Services.................................... 6.2%
Financial Services................................ 5.9%
Insurance......................................... 5.3%
Retail............................................ 5.0%
Electronics....................................... 3.7%
Chemicals......................................... 3.7%
Telecommunication Services........................ 3.5%
Automotive........................................ 3.3%
Utilities......................................... 2.5%
Telecommunications - Equipment.................... 2.2%
Broadcasting & Publishing......................... 2.1%
Electric.......................................... 1.9%
Building Materials................................ 1.6%
Metals & Mining................................... 1.5%
Construction & Housing............................ 1.5%
Electrical Equipment.............................. 1.4%
Diversified Manufacturing......................... 1.3%
Entertainment, Leisure & Media.................... 1.2%
Machinery......................................... 1.0%
Automotive Supplies............................... 1.0%
Commercial Services............................... 1.0%
Forest Products & Paper........................... 0.9%
Real Estate....................................... 0.9%
Transport & Services.............................. 0.9%
Government Obligations............................ 0.8%
Railroads......................................... 0.7%
Multi-Industry.................................... 0.7%
Business & Public Services........................ 0.7%
Computer Systems.................................. 0.5%
Holding Companies................................. 0.5%
Capital Goods..................................... 0.5%
Natural Gas....................................... 0.4%
Medical Supplies.................................. 0.4%
Computer Software................................. 0.3%
Gas Exploration................................... 0.3%
Aerospace......................................... 0.3%
Information Processing............................ 0.2%
Household Products................................ 0.1%
Oil - Production.................................. 0.1%
Airlines.......................................... 0.1%
Computer Peripherals.............................. 0.0%
Wholesale & International Trade................... 0.0%
-----------------
100.0%
-----------------
-----------------
</TABLE>
The Accompanying Notes are an Integral Part of the Financial Statements.
23
<PAGE>
THE INTERNATIONAL EQUITY PORTFOLIO
STATEMENT OF ASSETS AND LIABILITIES (UNAUDITED)
APRIL 30, 1999
- --------------------------------------------------------------------------------
<TABLE>
<S> <C>
ASSETS
Investments at Value (Cost $365,215,839 ) $469,849,463
Cash 3,164
Foreign Currency at Value (Cost $15,092,029 ) 15,031,032
Receivable for Investments Sold 6,223,704
Dividends Receivable 1,442,716
Foreign Tax Reclaim Receivable 729,854
Unrealized Appreciation of Forward Foreign
Currency Contracts 577,760
Interest Receivable 14,713
Prepaid Trustees' Fees 852
Prepaid Expenses and Other Assets 3,307
------------
Total Assets 493,876,565
------------
LIABILITIES
Payable for Investments Purchased 9,037,829
Variation Margin Payable 387,788
Advisory Fee Payable 236,586
Foreign Tax Withholding Payable 96,930
Unrealized Depreciation of Forward Foreign
Currency Contracts 77,710
Administration Fee Payable 8,787
Administrative Services Fee Payable 802
Fund Services Fee Payable 194
Accrued Expenses 240,947
------------
Total Liabilities 10,087,573
------------
NET ASSETS
Applicable to Investors' Beneficial Interests $483,788,992
------------
------------
</TABLE>
The Accompanying Notes are an Integral Part of the Financial Statements.
24
<PAGE>
THE INTERNATIONAL EQUITY PORTFOLIO
STATEMENT OF OPERATIONS (UNAUDITED)
FOR THE SIX MONTHS ENDED APRIL 30, 1999
- --------------------------------------------------------------------------------
<TABLE>
<S> <C> <C>
INVESTMENT INCOME
Dividend Income (Net of Foreign Withholding Tax
of $520,058 ) $ 3,258,041
Interest Income (Net of Foreign Withholding Tax
of $1,866 ) 280,904
-----------
Investment Income 3,538,945
EXPENSES
Advisory Fee $ 1,363,024
Custodian Fees and Expenses 409,024
Administrative Services Fee 60,062
Professional Fees and Expenses 26,995
Fund Services Fee 4,831
Trustees' Fees and Expenses 3,134
Administration Fee 3,069
Miscellaneous 4,695
-----------
Total Expenses 1,874,834
-----------
NET INVESTMENT INCOME 1,664,111
NET REALIZED GAIN (LOSS) ON
Investment Transactions 8,472,074
Futures 4,115,612
Foreign Currency Transactions (164,598)
-----------
Net Realized Gain 12,423,088
NET CHANGE IN UNREALIZED APPRECIATION OF
Investments 50,370,638
Futures Contracts 181,224
Foreign Currency Contracts and Translations 53,369
-----------
Net Change in Unrealized Appreciation 50,605,231
-----------
NET INCREASE IN NET ASSETS RESULTING FROM
OPERATIONS $64,692,430
-----------
-----------
</TABLE>
The Accompanying Notes are an Integral Part of the Financial Statements.
25
<PAGE>
THE INTERNATIONAL EQUITY PORTFOLIO
STATEMENT OF CHANGES IN NET ASSETS
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
FOR THE SIX
MONTHS ENDED
APRIL 30, FOR THE FISCAL
1999 YEAR ENDED
(UNAUDITED) OCTOBER 31, 1998
------------- ----------------
<S> <C> <C>
INCREASE (DECREASE) IN NET ASSETS
FROM OPERATIONS
Net Investment Income $ 1,664,111 $ 6,512,087
Net Realized Gain on Investments, Futures and
Foreign Currency Contracts and Transactions 12,423,088 4,786,051
Net Change in Unrealized Appreciation of
Investments, Futures and Foreign Currency
Contracts and Translations 50,605,231 22,380,408
------------- ----------------
Net Increase in Net Assets Resulting from
Operations 64,692,430 33,678,546
------------- ----------------
TRANSACTIONS IN INVESTORS' BENEFICIAL INTERESTS
Contributions 141,967,827 190,933,942
Withdrawals (166,345,883) (544,746,196)
------------- ----------------
Net Decrease from Investors' Transactions (24,378,056) (353,812,254)
------------- ----------------
Total Increase (Decrease) in Net Assets 40,314,374 (320,133,708)
NET ASSETS
Beginning of Period 443,474,618 763,608,326
------------- ----------------
End of Period $ 483,788,992 $ 443,474,618
------------- ----------------
------------- ----------------
</TABLE>
- --------------------------------------------------------------------------------
SUPPLEMENTARY DATA
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
FOR THE
SIX MONTHS
ENDED FOR THE FISCAL YEAR ENDED OCTOBER 31,
APRIL 30, 1999 -------------------------------------
(UNAUDITED) 1998 1997 1996 1995 1994
--------------- ----- ----- ----- ----- -----
<S> <C> <C> <C> <C> <C> <C>
RATIOS TO AVERAGE NET ASSETS
Expenses 0.83%(b) 0.79% 0.77% 0.79% 0.82% 0.95%
Net Investment Income 0.73%(b) 1.09% 1.47% 1.39% 1.31% 0.93%
Portfolio Turnover 35% 74% 67% 57% 59% 56%
</TABLE>
- ------------------------
(b) Annualized
The Accompanying Notes are an Integral Part of the Financial Statements.
26
<PAGE>
THE INTERNATIONAL EQUITY PORTFOLIO
NOTES TO FINANCIAL STATEMENTS (UNAUDITED)
APRIL 30, 1999
- --------------------------------------------------------------------------------
1. ORGANIZATION AND SIGNIFICANT ACCOUNTING POLICIES
The International Equity Portfolio (the "portfolio") is registered under the
Investment Company Act of 1940, as amended, 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's investment objective is to provide a high
total return from a portfolio of equity securities of foreign companies. 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.
Investments in international markets may involve certain considerations and
risks not typically associated with investments in the United States. Future
economic and political developments in foreign countries could adversely affect
the liquidity or value, or both, of such securities in which the portfolio is
invested. The ability of the issuers of debt securities held by the portfolio to
meet their obligations may be affected by economic and political developments in
a specific industry or region.
The preparation of financial statements in accordance with generally accepted
accounting principles requires management to make estimates and assumptions that
affect the reported amounts and disclosures. Actual amounts could differ from
those estimates. 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
exist 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 average of readily available closing bid
and asked prices on such exchanges. 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
short-term 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 assets are 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
foreign currency contracts are translated at the prevailing
27
<PAGE>
THE INTERNATIONAL EQUITY PORTFOLIO
NOTES TO FINANCIAL STATEMENTS (UNAUDITED) (CONTINUED)
APRIL 30, 1999
- --------------------------------------------------------------------------------
exchange rates at the end of the period. Purchases, sales, income and
expenses are translated at the exchange rates prevailing on the respective
dates of such transactions.Translation gains and losses resulting from
changes in the exchange rates during the reporting period and gains and
losses realized upon settlement of foreign currency transactions are
reported in the Statement of Operations. Although 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) Securities transactions are recorded on a trade-date basis. Dividend
income is recorded on the ex-dividend date or as the time that the
relevant ex-dividend date and amount become 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.
d) 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 at the current foreign exchange
rates, and the change in the market value is recorded by the portfolio as
unrealized appreciation or depreciation of forward foreign currency
contract translations. At April 30, 1999, the portfolio had open forward
currency contracts as follows:
SUMMARY OF OPEN FORWARD FOREIGN CURRENCY CONTRACTS
<TABLE>
<CAPTION>
U.S. DOLLAR NET UNREALIZED
CONTRACTUAL VALUE AT APPRECIATION/
PURCHASE CONTRACTS VALUE 4/30/99 (DEPRECIATION)
- ------------------------------------------------- ----------- ----------- --------------
<S> <C> <C> <C>
Hong Kong Dollar 27,867,605, expiring 7/23/99.... $ 3,594,521 $ 3,594,574 $ 53
</TABLE>
<TABLE>
<CAPTION>
SETTLEMENT
SALES CONTRACTS VALUE
- ------------------------------------------------- -----------
<S> <C> <C> <C>
Australian Dollar 4,272,623, expiring 7/23/99.... $ 2,789,168 $ 2,832,657 $ (43,489)
Euro 38,001,195, expiring 7/23/99................ 40,702,405 40,423,836 278,569
Japanese Yen 2,882,709,704, expiring 7/23/99..... 24,726,673 24,427,535 299,138
New Zealand Dollar 3,887,563, expiring 7/23/99... 2,143,213 2,177,434 (34,221)
--------------
NET UNREALIZED APPRECIATION OF FORWARD FOREIGN
CURRENCY CONTRACTS.............................. $ 500,050
--------------
--------------
</TABLE>
e) Futures -- A futures contract is an agreement to purchase/sell a specified
quantity of an underlying instrument at a specified future date or to
make/receive a cash payment based on the value of a securities index. The
price at which the purchase and sale will take place is fixed when the
portfolio
28
<PAGE>
THE INTERNATIONAL EQUITY PORTFOLIO
NOTES TO FINANCIAL STATEMENTS (UNAUDITED) (CONTINUED)
APRIL 30, 1999
- --------------------------------------------------------------------------------
enters into the contract. Upon entering into such a contract, the
portfolio is required to pledge to the broker an amount of cash and/or
liquid securities equal to the minimum "initial margin" requirements of
the exchange. Pursuant to the contract, the portfolio agrees to receive
from, or pay to, the broker an amount of cash equal to the daily
fluctuation in the value of the contract. Such receipts or payments are
known as "variation margin" and are recorded by the portfolio as
unrealized gains or losses. When the contract is closed, the portfolio
records a realized gain or loss equal to the difference between the value
of the contract at the time it was opened and the value at the time when
it was closed. The portfolio invests in futures contracts for the purpose
of hedging its existing portfolio securities, or securities the portfolio
intends to purchase, against fluctuations in value caused by changes in
prevailing market interest rates or securities movements. The use of
futures transactions involves the risk of imperfect correlation in
movements in the price of futures contracts, interest rates and the
underlying hedged assets, and the possible inability of counterparties to
meet the terms of their contracts. Futures contracts at April 30, 1999 are
summarized as follows:
THE INTERNATIONAL EQUITY PORTFOLIO -- OPEN FUTURES CONTRACTS
<TABLE>
<CAPTION>
NET UNREALIZED
APPRECIATION/ PRINCIPAL AMOUNT
CONTRACTS LONG (DEPRECIATION) OF CONTRACTS
-------------- -------------- ----------------
<S> <C> <C> <C>
Australian All Ord. Index, expiring June 1999.... 118 $ 127,401 $ 5,915,354
FTSE 100 Index, expiring June 1999............... 93 428,899 9,397,936
Hang Seng Index, expiring May 1999............... 124 51,458 10,660,282
Topix Index, expiring June 1999.................. 39 300,997 4,038,829
-------------- -------------- ----------------
Totals........................................... 374 $ 908,755 $ 30,012,401
-------------- -------------- ----------------
-------------- -------------- ----------------
</TABLE>
<TABLE>
<CAPTION>
NET UNREALIZED
APPRECIATION/ PRINCIPAL AMOUNT
CONTRACTS SHORT (DEPRECIATION) OF CONTRACTS
--------------- -------------- ----------------
<S> <C> <C> <C>
CAC 40 Index, expiring May 1999.................. 103 $ (84,401) $ (4,723,435)
DAX Index 10 Euro, expiring May 1999............. 33 (316,584) (4,462,344)
IBEX Plus Index, expiring May 1999............... 11 9,302 (1,167,089)
--------------- -------------- ----------------
Totals........................................... 147 $ (391,683) $ (10,352,868)
--------------- -------------- ----------------
--------------- -------------- ----------------
</TABLE>
f) The portfolio intends to be treated as a partnership for federal income
tax purposes. As such, each investor in the portfolio will be taxed 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.
2. TRANSACTIONS WITH AFFILIATES
a) Prior to October 1, 1998, the portfolio had an Investment Advisory
Agreement with Morgan Guaranty Trust Company of New York ("Morgan"), a
wholly owned subsidiary of J.P. Morgan & Co.
29
<PAGE>
THE INTERNATIONAL EQUITY PORTFOLIO
NOTES TO FINANCIAL STATEMENTS (UNAUDITED) (CONTINUED)
APRIL 30, 1999
- --------------------------------------------------------------------------------
Incorporated ("J.P. Morgan"). Under the terms of the agreement, the
portfolio paid Morgan at an annual rate of 0.60% of the portfolio's
average daily net assets. Effective October 1, 1998, the portfolio's
Investment Advisor is J.P. Morgan Investment Management Inc.("JPMIM"), an
affiliate of Morgan and a wholly owned subsidiary of J.P. Morgan, and the
terms of the agreement will remain the same. For the six months ended
April 30, 1999, such fees amounted to $1,363,024
b) The portfolio has retained Funds Distributor, Inc. ("FDI"), a registered
broker-dealer, to serve as the co-administrator and exclusive placement
agent for the portfolio. Under a Co-Administration Agreement between FDI
and the portfolio, FDI provides administrative services necessary for the
operation of the portfolio, furnishes office space and facilities required
for conducting the business of the portfolio and pays the compensation of
the officers affiliated with FDI. The portfolio has agreed to pay FDI fees
equal to its allocable share of an annual complex-wide charge of $425,000
plus FDI's out-of-pocket expenses. The amount allocable to the portfolio
is based on the ratio of the portfolio's net assets to the aggregate net
assets of the portfolio and certain other investment companies subject to
similar agreements with FDI. For the six months ended April 30, 1999, the
fee for these services amounted to $3,069.
c) The portfolio has an Administrative Services Agreement (the "Services
Agreement") with Morgan under which Morgan is responsible for certain
aspects of the administration and operation of the portfolio. Under the
Services Agreement, the portfolio has agreed to pay Morgan a fee equal to
its allocable share of an annual complex-wide charge. This charge is
calculated based on the aggregate average daily net assets of the
portfolio and other portfolios for which JPMIM acts as investment advisor
(the "master portfolios") and J.P. Morgan Series Trust in accordance with
the following annual schedule: 0.09% on the first $7 billion of their
aggregate average daily net assets and 0.04% of their aggregate average
daily net assets in excess of $7 billion less the complex-wide fees
payable to FDI. The portion of this charge payable by the portfolio is
determined by the proportionate share that its net assets bear to the net
assets of the master portfolios, other investors in the master portfolios
for which Morgan provides similar services, and J.P. Morgan Series Trust.
For the six months ended April 30, 1999, the fee for these services
amounted to $60,062.
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 $4,831 for the six months ended April 30, 1999.
e) An aggregate annual fee of $75,000 is paid to each trustee for serving as
a trustee of the J.P. Morgan Funds, the J.P. Morgan Institutional Funds,
the master portfolios and J.P. Morgan Series Trust. The Trustees' Fees and
Expenses shown in the financial statements represent the portfolio's
allocated portion of the total fees and expenses. The portfolio's Chairman
and Chief Executive Officer 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 $1,000.
30
<PAGE>
THE INTERNATIONAL EQUITY PORTFOLIO
NOTES TO FINANCIAL STATEMENTS (UNAUDITED) (CONTINUED)
APRIL 30, 1999
- --------------------------------------------------------------------------------
3. INVESTMENT TRANSACTIONS
Investment transactions (excluding short-term investments) for the six months
ended April 30, 1999 were as follows:
<TABLE>
<CAPTION>
COST OF PROCEEDS
PURCHASES FROM SALES
- ----------------- ------------
<S> <C>
$152,960,963..... $164,943,190
</TABLE>
4. CREDIT AGREEMENT
The portfolio is party to a revolving line of credit agreement (the "Agreement")
as discussed more fully in Note 4 of the fund's Notes to the Financial
Statements which are included elsewhere in this report.
31
