<PAGE>
THE INTERNATIONAL EQUITY PORTFOLIO
SCHEDULE OF INVESTMENTS (UNAUDITED)
APRIL 30, 2000
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SECURITY DESCRIPTION SHARES VALUE
------------------------------------------------- ------------ -------------
<S> <C> <C>
COMMON STOCK (95.4%)
AUSTRALIA (1.9%)
AMP Ltd. (Insurance)(s).......................... 149,100 $ 1,304,995
Broken Hill Proprietary Co. Ltd. (Metals &
Mining)(s)..................................... 101,105 1,087,861
CSR Ltd. (Building Materials)(s)................. 477,400 1,044,608
Lend Lease Corp. Ltd. (Financial Services)(s).... 58,100 629,072
National Australia Bank Ltd. (Banking)(s)........ 123,605 1,692,014
Southcorp Ltd. (Food, Beverages & Tobacco)(s).... 402,500 1,254,378
Telstra Corp. Ltd. (Telecommunication
Services)(s)................................... 329,200 1,409,924
Telstra Corp. Ltd.- Installment Receipt
(Telecommunication Services)(s)................ 138,596 354,213
Westpac Banking Corp. Ltd. (Banking)(s).......... 178,100 1,135,858
WMC Ltd. (Metals & Mining)(s).................... 178,900 742,198
------------
10,655,121
------------
AUSTRIA (0.1%)
Bank Austria AG (Banking)(s)..................... 12,731 566,132
------------
BELGIUM (0.1%)
Real Software (Computer Software)+(s)............ 3,355 227,305
Ubizen (Computer Software)+(s)................... 3,601 508,616
------------
735,921
------------
DENMARK (0.2%)
Novo Nordisk A/S (Pharmaceuticals)(s)............ 6,782 911,838
------------
FINLAND (3.0%)
Nokia OYJ (Telecommunications-Equipment)(s)...... 208,383 11,981,928
Sampo Insurance Co. Ltd., A Shares
(Insurance)(s)................................. 11,069 419,601
Sonera OYJ (Telecommunication Services)(s)....... 16,248 895,757
<CAPTION>
SECURITY DESCRIPTION SHARES VALUE
------------------------------------------------- ------------ -------------
<S> <C> <C>
FINLAND (CONTINUED)
Stora Enso OYJ, R Shares (Forest Products &
Paper)(s)...................................... 206,524 $ 2,087,616
Tietoenator OYJ Abp (Computer Software)(s)....... 17,202 830,787
------------
16,215,689
------------
FRANCE (10.6%)
Alcatel (Telecommunications-Equipment)(s)........ 22,365 5,196,897
Alstom SA (Railroads)(s)......................... 59,251 1,479,925
Aventis SA (Pharmaceuticals)(s).................. 16,155 890,630
AXA (Insurance)(s)............................... 24,931 3,705,345
Banque Nationale de Paris (Financial
Services)(s)................................... 38,137 3,089,465
Carrefour SA (Retail)(s)......................... 21,814 1,423,257
Castorama Dubois Investissement SA (Retail)(s)... 4,255 930,563
Christian Dior SA (Retail)(s).................... 6,659 1,586,776
CNP Assurances (Insurance)(s).................... 21,900 639,798
Coface (insurance)+(s)........................... 7,894 726,530
Coflexip SA (Oil-Services)+(s)................... 7,798 760,330
Fimatex (Financial Services)+(s)................. 57,066 1,180,425
France Telecom SA (Telecommunication
Services)(s)................................... 11,571 1,794,591
Genset SA (Biotechnology)+(s).................... 12,636 949,945
Groupe Danone (Food, Beverages & Tobacco)(s)..... 12,062 2,643,440
Havas Advertising SA (Broadcasting &
Publishing)(s)................................. 1,820 910,498
Lafarge (Building Materials)(s).................. 25,373 2,106,324
Lagardere S.C.A. (Multi - Industry)(s)........... 17,144 1,163,867
Louis Vuitton Moet Hennessy (Food, Beverages &
Tobacco)(s).................................... 3,161 1,329,613
Pinault-Printemps-Redoute SA (Retail)(s)......... 3,194 645,843
Renault SA (Automotive)(s)....................... 28,744 1,309,641
Rhodia SA (Chemicals)(s)......................... 4,700 87,370
Sanofi-Synthelabo SA (Pharmaceuticals)+(s)....... 39,874 1,491,551
STMicroelectronics NV (Electronics)(s)........... 9,311 1,780,918
</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, 2000
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SECURITY DESCRIPTION SHARES VALUE
------------------------------------------------- ------------ -------------
<S> <C> <C>
FRANCE (CONTINUED)
Suez Lyonnaise des Eaux SA (Utilities)(s)........ 10,315 $ 1,621,412
Total Fina SA, B Shares (Oil-Services)(s)........ 58,214 8,853,578
Usinor SA (Metals & Mining)(s)................... 65,153 857,901
Vivendi (Utilities)(s)........................... 89,907 8,913,688
------------
58,070,121
------------
GERMANY (7.8%)
Allianz AG (Insurance)(s)........................ 9,615 3,708,793
BASF AG (Chemicals)(s)........................... 77,936 3,415,293
Bayer AG (Chemicals)(s).......................... 83,858 3,502,107
Brokat Infosystems AG (Computer Software)+(s).... 7,602 925,485
Consors Discount Broker AG (Financial
Services)+(s).................................. 10,410 1,175,323
DaimlerChrysler AG (Automotive)(s)............... 32,602 1,905,794
Deutsche Bank AG (Banking)(s).................... 43,684 2,941,724
Deutsche Lufthansa AG (Airlines)(s).............. 21,500 447,672
Deutsche Telekom (Utilities)(s).................. 91,598 5,958,795
Dresdener Bank AG (Banking)(s)................... 17,540 724,200
Entrium Direct Bankers AG (Banking)+(s).......... 25,900 970,011
Intershop Communications AG (Computer
Software)+(s).................................. 1,950 868,864
Marschollek, Lautenschlaeger und Partner AG
(Financial Services)(s)........................ 3,485 1,856,031
Marshollek, Lautenschlaeger und Parner AG
(Insurance)(s)................................. 200 70,530
Metallgesellschaft AG (Diversified
Manufacturing)(s).............................. 29,428 456,410
Metro AG (Retail)(s)............................. 26,422 1,030,492
PrimaCom AG (Broadcasting)+(s)................... 14,839 1,142,606
SAP AG (Computer Software)(s).................... 3,837 1,800,670
Schering AG (Pharmaceuticals)(s)................. 10,848 1,537,146
Siemens AG (Electrical Equipment)(s)............. 23,621 3,508,496
ThyssenKrupp AG (Diversified
Manufacturing)+(s)............................. 49,697 1,046,110
<CAPTION>
SECURITY DESCRIPTION SHARES VALUE
------------------------------------------------- ------------ -------------
<S> <C> <C>
GERMANY (CONTINUED)
Veba AG (Utilities)(s)........................... 45,089 $ 2,268,009
Viag AG (Diversified Manufacturing)(s)........... 59,309 1,159,806
------------
42,420,367
------------
HONG KONG (1.8%)
Bank of East Asia Ltd. (Banking)(s).............. 558,800 1,208,825
Cheung Kong Holdings Ltd. (Real Estate)(s)....... 174,000 2,077,492
China Telecom Ltd. (Telecommunication
Services)+(s).................................. 162,000 1,169,889
Hongkong Electric Holdings Ltd. (Electric)(s).... 325,500 1,015,464
Hutchison Whampoa Ltd.
(Multi - Industry)(s).......................... 192,000 2,797,720
SmarTone Telecommunications Holdings Ltd.
(Telecommunication Services)(s)................ 269,000 842,654
Sunevision Holdings Ltd. (Computer
Systems)+(s)................................... 599,000 780,549
------------
9,892,593
------------
IRELAND (0.6%)
Bank of Ireland (Banking)(s)..................... 51,833 349,521
CRH PLC (Building Materials)(s).................. 51,400 824,348
Fyffes PLC (Wholesale & International
Trade)(s)...................................... 11,000 18,544
Irish Life and Permanent PLC (Financial
Services)(s)................................... 71,498 592,885
Jefferson Smurfit Group PLC (Forest Products &
Paper)(s)...................................... 570,629 1,247,958
------------
3,033,256
------------
ITALY (3.0%)
Banca Fideuram SPA (Financial Services)(s)....... 87,496 1,307,576
Banca Popolare di Milano (Banking)(s)............ 127,947 764,837
Bipop (Financial Services)(s).................... 10,018 912,885
</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, 2000
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SECURITY DESCRIPTION SHARES VALUE
------------------------------------------------- ------------ -------------
<S> <C> <C>
ITALY (CONTINUED)
Credito Emiliano SpA (Banking)(s)................ 193,374 $ 549,778
ENI SPA (Oil-Services)(s)........................ 471,787 2,351,626
Fiat SpA (Automotive)(s)......................... 36,000 884,746
Mediolanum SPA (Financial Services)(s)........... 83,064 1,381,372
Saipem SpA (Oil-Services)(s)..................... 136,800 678,141
Telecom Italia Mobile SpA
(Telecommunications)(s)........................ 388,010 3,712,507
Telecom Italia SPA (Telecommunication
Services)(s)................................... 189,476 2,655,496
UniCredito Italiano SPA (Financial
Services)(s)................................... 287,272 1,167,517
------------
16,366,481
------------
JAPAN (26.0%)
Advantest Corp. (Electronics)(s)................. 5,600 1,280,370
Aiful Corp. (Banking)(s)......................... 8,625 869,882
Ajinomoto Co., Inc. (Food, Beverages &
Tobacco)(s).................................... 125,000 1,428,406
Asahi Bank Ltd. (Banking)(s)..................... 280,000 1,347,213
Bank of Fukuoka Ltd. (Banking)(s)................ 174,000 1,147,925
Bank of Tokyo - Mitsubishi Ltd. (Banking)(s)..... 226,000 2,915,050
Bridgestone Corp. (Chemicals)(s)................. 92,000 1,996,206
Citizen Watch Co. (Retail)+(s)................... 144,000 1,079,251
Daiwa Securities Group, Inc. (Financial
Services)+(s).................................. 43,000 656,489
DDI Corp. (Telecommunications)(s)................ 149 1,709,554
Ebara Corp. (Machinery)(s)....................... 252,000 2,912,311
Fuji Bank Ltd. (Banking)(s)...................... 208,000 1,732,130
Fuji Heavy Industries, Ltd. (Truck & Freight
Carriers)(s)................................... 176,000 1,343,511
Fujitsu Ltd. (Computer Systems)(s)............... 188,000 5,322,970
Hitachi Ltd. (Electrical Equipment)(s)........... 204,000 2,434,976
Hitachi Software Engineering Co. (Computer
Software)(s)................................... 5,100 521,443
Honda Motor Co. Ltd. (Automotive)(s)............. 116,000 5,184,178
Ito - Yokado Co. Ltd. (Retail)(s)................ 18,000 1,314,087
<CAPTION>
SECURITY DESCRIPTION SHARES VALUE
------------------------------------------------- ------------ -------------
<S> <C> <C>
JAPAN (CONTINUED)
Kaken Pharmaceutical Co., Ltd.
(Pharmaceuticals)(s)........................... 58,000 $ 327,365
Kawasaki Steel Corp. (Metals & Mining)(s)........ 559,000 868,952
Macnica, Inc. (Distributors)(s).................. 3,900 690,326
Marui Co. Ltd. (Retail)(s)....................... 70,000 1,314,828
Matsushita Electric Industrial Co., Ltd.
(Electronics)(s)............................... 130,000 3,440,204
Minebea Co. Ltd. (Capital Goods)(s).............. 251,000 3,065,649
Mitsubishi Chemical Corp. (Chemicals)(s)......... 956,000 3,830,192
Mitsubishi Corp. (Wholesale & International
Trade)(s)...................................... 435,000 3,783,484
Mitsubishi Estate Co. Ltd. (Real Estate)(s)...... 112,000 1,259,126
Mitsui Marine & Fire Insurance Co. Ltd.
(Insurance)(s)................................. 137,000 602,128
NAMCO Ltd. (Entertainment, Leisure & Media)(s)... 29,000 1,183,345
NEC Corp. (Computer Systems)(s).................. 138,000 3,754,060
Nintendo Co. Ltd. (Retail)(s).................... 9,400 1,565,579
Nippon Meat Packers, Inc. (Food, Beverages &
Tobacco)(s).................................... 4,000 50,520
Nippon Telegraph & Telephone Corp.
(Telecommunications)(s)........................ 747 9,261,901
Nippon Yusen Kabushiki Kaisha (Transport &
Services)(s)................................... 811,000 3,226,741
Nishimatsu Construction Co., Ltd.
(Construction & Housing)(s).................... 423,000 1,350,312
Nissan Motor Co. Ltd. (Automotive)+(s)........... 373,000 1,694,592
Nisshin Steel Co. Ltd. (Metals & Mining)(s)...... 29,000 29,248
Omron Corp. (Electrical Equipment)(s)............ 25,000 680,083
Oriental Land Co. Ltd. (Restaurants &
Hotels)(s)..................................... 8,800 933,944
Osaka Gas Co. Ltd. (Natural Gas)(s).............. 562,000 1,534,027
Paris Miki, Inc. (Retail)(s)..................... 3,640 231,721
Pioneer Corp. (Electronics)(s)................... 86,000 2,347,444
Promise Co. Ltd (Financial Services)(s).......... 33,800 2,736,526
</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, 2000
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SECURITY DESCRIPTION SHARES VALUE
------------------------------------------------- ------------ -------------
<S> <C> <C>
JAPAN (CONTINUED)
Ricoh Co. Ltd. (Electrical Equipment)(s)......... 124,000 $ 2,615,961
Rohm Co. Ltd. (Electronics)(s)................... 9,400 3,148,554
Sanyo Electric Co. Ltd. (Electronics)(s)......... 124,000 827,240
Sekisui Chemical Co. Ltd. (Chemicals)(s)......... 217,000 795,114
Shohkoh Fund & Co. Ltd. (Financial
Services)(s)................................... 3,280 585,741
Snow Brand Milk Products Co. Ltd. (Food,
Beverages & Tobacco)(s)........................ 165,000 641,221
Softbank Corp. (Computer Software)(s)............ 17,400 4,282,582
Sony Corp. (Electronics)(s)...................... 40,700 4,673,486
Sony Corp.- New (Electronics)+(s)................ 40,700 4,707,379
Sumitomo Bakelite Co. Ltd. (Chemicals)(s)........ 70,000 770,113
Sumitomo Bank Ltd. (Banking)(s).................. 91,000 1,137,553
Sumitomo Rubber Industries Ltd. (Automotive
Supplies)(s)................................... 253,000 1,322,646
Sumitomo Trust and Banking Co. (Banking)(s)...... 157,000 1,147,629
Suzuki Motor Corp. (Automotive)(s)............... 73,000 1,086,810
Taiheiyo Cement Corp. (Building Materials)(s).... 239,000 340,560
Takeda Chemical Industries Ltd. (Chemicals)(s)... 71,000 4,670,923
Takefuji Corp. (Financial Services)(s)........... 9,900 1,047,023
TDK Corp. (Computer Peripherals)(s).............. 7,000 937,220
The Chuo Mitsui Trust and Banking Co. Ltd.
(Banking)(s)................................... 48,300 217,646
Tokuyama Corp. (Chemicals)(s).................... 170,000 811,659
Tokyo Electric Power Co., Inc. (Electric)(s)..... 76,500 1,804,997
Tokyo Electron Ltd. (Electronics)(s)............. 15,000 2,444,136
Tokyo Gas Co. Ltd. (Natural Gas)(s).............. 387,000 852,241
Tokyo Steel Manufacturing Co. Ltd. (Metals &
Mining)(s)..................................... 153,000 383,650
<CAPTION>
SECURITY DESCRIPTION SHARES VALUE
------------------------------------------------- ------------ -------------
<S> <C> <C>
JAPAN (CONTINUED)
Toppan Printing Co. Ltd. (Broadcasting &
Publishing)(s)................................. 203,000 $ 2,122,508
Tostem Corp. (Construction & Housing)(s)......... 81,000 1,192,422
Toyo Trust & Banking Co. Ltd. (Banking)(s)....... 274,000 1,001,434
Toyota Motor Corp. Ltd. (Automotive)(s).......... 92,000 4,571,270
Uny Co. Ltd. (Retail)(s)......................... 141,000 1,487,300
Welfide Corp. (Pharmaceuticals)(s)............... 62,000 871,987
West Japan Railway Co. (Railroads)(s)............ 881 3,032,450
Yamaha Corp. (Electronics)(s).................... 13,000 88,050
Yamanouchi Pharmaceutical Industries Ltd.
(Pharmaceuticals)(s)........................... 23,000 1,215,175
York - Benimaru Co. Ltd. (Retail)(s)............. 15,000 383,067
------------
142,175,996
------------
LUXEMBOURG (0.3%)
Carrier 1 International SA (Telecommunication
Services)+(s).................................. 8,098 667,823
Compagnie Luxembourgeoise pour l'Audio-Visuel et
la Finance (Audiofina) (Broadcasting &
Publishing)(s)................................. 7,673 947,413
------------
1,615,236
------------
NETHERLANDS (5.4%)
Buhrmann NV (Wholesale & International
Trade)(s)...................................... 23,100 596,761
Equant NV (Information Processing)+(s)........... 33,473 2,597,253
Getronics NV (Computer Systems)(s)............... 19,361 1,157,355
Heineken NV (Food, Beverages & Tobacco)(s)....... 46,022 2,558,176
ING Groep NV (Financial Services)(s)............. 54,890 3,002,094
Koninklijke (Royal) Philips Electronics NV
(Electronics)(s)............................... 125,840 5,626,908
</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, 2000
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SECURITY DESCRIPTION SHARES VALUE
------------------------------------------------- ------------ -------------
<S> <C> <C>
NETHERLANDS (CONTINUED)
Koninklijke Numico NV (Food, Beverages &
Tobacco)(s).................................... 21,984 $ 819,342
KPN NV (Telecommunication Services)(s)........... 34,510 3,485,906
Lycos Europe N.V. (Computer Systems)+(s)......... 50,932 779,713
Royal Dutch Petroleum Co. (Oil-Services)(s)...... 81,603 4,714,443
United Pan-Europe Communications N.V.
(Broadcasting)+(s)............................. 47,052 1,716,322
Versatel Telecom International NV
(Telecommunication Services)+(s)............... 28,139 1,130,791
VIA NET.WORKS, Inc. (Computer Software)+(s)...... 28,279 510,228
VNU NV (Broadcasting & Publishing)(s)............ 20,300 1,088,623
------------
29,783,915
------------
NEW ZEALAND (0.5%)
Fletcher Challenge Building (Building
Materials)(s).................................. 252,500 239,389
Fletcher Challenge Energy (Gas Exploration)(s)... 141,100 325,858
Fletcher Challenge Paper (Forest Products &
Paper)(s)...................................... 700,500 786,734
Telecom Corp. of New Zealand Ltd.
(Telecommunications)(s)........................ 287,300 1,215,242
------------
2,567,223
------------
NORWAY (0.1%)
EDB Business Partner ASA (Computer
Software)(s)................................... 3,303 43,563
EDB Business Partner ASA (Computer
Software)(s)................................... 3,303 869
Schibsted ASA (Broadcasting & Publishing)(s)..... 21,474 446,425
------------
490,857
------------
<CAPTION>
SECURITY DESCRIPTION SHARES VALUE
------------------------------------------------- ------------ -------------
<S> <C> <C>
PORTUGAL (0.1%)
PT MULTIMEDIA - Servicos de Telecomunicacoes e
Multimedia SGPS SA (Telecommunication
Services)+(s).................................. 11,602 $ 811,421
------------
SINGAPORE (0.7%)
DBS Group Holdings Ltd. (144A) (Financial
Services)(s)................................... 155,265 2,136,883
Singapore Press Holdings Ltd. (Broadcasting &
Publishing)(s)................................. 53,000 1,036,720
Venture Manufacturing Ltd. (Manufacturing)(s).... 65,000 761,347
------------
3,934,950
------------
SPAIN (3.6%)
Amadeus Global Travel Distribution SA
(Transport & Services)+(s)..................... 63,529 787,310
Banco Bilbao Vizcaya SA (Banking)(s)............. 130,194 1,779,579
Banco Santander Central Hispano, SA
(Banking)(s)................................... 168,151 1,757,510
Endesa SA (Electric)(s).......................... 182,913 3,976,949
Iberdrola SA (Electric)(s)....................... 75,169 966,498
Indra Sistemas SA (Electronics)(s)............... 46,897 1,103,836
Repsol-YFP, SA (Oil-Production)(s)............... 154,802 3,173,907
Telefonica SA (Telecommunication Services)+(s)... 263,560 5,879,305
------------
19,424,894
------------
SWEDEN (3.6%)
Autoliv, Inc. (SDR) (Automotive Supplies)(s)..... 38,113 1,068,509
Ericsson LM, B Shares (Telecommunications-
Equipment)(s).................................. 123,661 11,008,357
Hennes & Mauritz AB (H&M) (Retail)(s)............ 18,817 500,217
Investor AB (Holding Companies)(s)............... 71,998 1,013,263
</TABLE>
The Accompanying Notes are an Integral Part of the Financial Statements.
22
<PAGE>
THE INTERNATIONAL EQUITY PORTFOLIO
SCHEDULE OF INVESTMENTS (UNAUDITED) (CONTINUED)
APRIL 30, 2000
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SECURITY DESCRIPTION SHARES VALUE
------------------------------------------------- ------------ -------------
<S> <C> <C>
SWEDEN (CONTINUED)
Modern Times Group MTG AB (Broadcasting &
Publishing)+(s)................................ 15,905 $ 783,436
OM Gruppen AB (Financial Services)(s)............ 300 12,465
Skandia Forsakrings AB (Insurance)(s)............ 60,461 2,897,104
Skandinaviska Ensklida Banken (SEB)
(Banking)(s)................................... 150,798 1,650,643
Tele1 Europe Holding AB
(Telecommunications)(s)........................ 34,908 549,763
------------
19,483,757
------------
SWITZERLAND (6.6%)
ABB Ltd. (Holding Companies)(s).................. 15,881 1,786,093
ABB Ltd. (Holding Companies)(s).................. 9,165 1,023,679
Compagnie Financiere Richemont AG (Food,
Beverages & Tobacco)(s)........................ 719 1,751,008
Credit Suisse Group (Financial Services)(s)...... 22,707 4,111,148
Fantastic Corp. (Computer Software)+(s).......... 21,315 390,406
Nestle SA (Food, Beverages & Tobacco)(s)......... 2,855 5,044,580
Novartis AG (Pharmaceuticals)(s)................. 3,376 4,726,989
Roche Holding AG (Pharmaceuticals)+(s)........... 618 6,469,154
Schweizerische Lebensversicherungs-und
Rentenanstalt (Insurance)(s)................... 1,762 935,022
SGS-Thomson Microelectronics NV
(Electronics)(s)............................... 590 919,035
Swisscom AG (Telecommunication Services)(s)...... 7,826 2,765,596
The Swatch Group (Electronics)(s)................ 457 490,867
UBS AG (Banking)+(s)............................. 15,761 3,870,400
Zurich Allied AG (Insurance)(s).................. 4,684 1,995,566
------------
36,279,543
------------
<CAPTION>
SECURITY DESCRIPTION SHARES VALUE
------------------------------------------------- ------------ -------------
<S> <C> <C>
UNITED KINGDOM (19.4%)
3i Group PLC (Financial Services)(s)............. 68,900 $ 1,389,643
ARM Holdings PLC (Computer Software)+(s)......... 109,500 1,122,242
AstraZeneca Group PLC (Pharmaceuticals)(s)....... 34,500 1,451,580
Baltimore Technologies PLC (Computer
Systems)(s).................................... 2,400 242,704
Bank of Scotland (Banking)(s).................... 76,657 683,088
BG Group PLC (Gas Exploration)(s)................ 214,677 1,286,517
Billiton PLC (Metals & Mining)(s)................ 264,300 986,317
BP Amoco PLC (Oil-Production)(s)................. 1,187,812 10,305,770
British Aerospace PLC (Aerospace)(s)............. 208,983 1,288,363
British Airways PLC (Airlines)(s)................ 60,000 312,392
British American Tobacco PLC (Food, Beverages &
Tobacco)(s).................................... 47,499 288,554
British Sky Broadcasting Group PLC
(Broadcasting & Publishing)+(s)................ 103,300 2,545,728
British Telecommunications PLC
(Telecommunications)(s)........................ 329,900 5,941,400
Cable & Wireless Communications PLC
(Telecommunications)(s)........................ 56,700 943,078
Cable & Wireless Communications PLC
(Telecommunications)(s)........................ 25,700 386,043
Cadbury Schweppes PLC (Food, Beverages &
Tobacco)(s).................................... 283,700 1,948,745
Carlton Communications PLC (Entertainment,
Leisure & Media)(s)............................ 52,000 629,761
Celltec Group PLC (Pharmaceuticals)+(s).......... 39,000 641,965
CMG PLC (Computer Systems)(s).................... 10,900 709,157
Compass Group PLC (Food, Beverages &
Tobacco)(s).................................... 81,000 1,154,608
Corus Group PLC (Metals & Mining)(s)............. 297,700 400,598
Dixons Group PLC (Retail)(s)..................... 188,619 773,246
</TABLE>
The Accompanying Notes are an Integral Part of the Financial Statements.
23
<PAGE>
THE INTERNATIONAL EQUITY PORTFOLIO
SCHEDULE OF INVESTMENTS (UNAUDITED) (CONTINUED)
APRIL 30, 2000
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SECURITY DESCRIPTION SHARES VALUE
------------------------------------------------- ------------ -------------
<S> <C> <C>
UNITED KINGDOM (CONTINUED)
Enterprise Oil PLC (Oil-Production)(s)........... 44,200 $ 326,953
FirstGroup PLC (Transport & Services)(s)......... 101,000 237,842
Glaxo Wellcome PLC (Pharmaceuticals)(s).......... 232,900 7,219,135
Glynwed International PLC (Metals & Mining)(s)... 236,101 820,129
Great Universal Stores PLC (Retail)(s)........... 136,100 825,203
Hanson PLC (Building Materials)(s)............... 120,500 889,939
Hays PLC (Commercial Services)(s)................ 121,200 836,794
Hilton Group Lpc. (Restaurants & Hotels)(s)...... 178,900 754,398
HSBC Holdings PLC (Financial Services)(s)........ 282,100 3,138,368
Imperial Chemical Industries PLC
(Chemicals)(s)................................. 70,000 602,410
Jazztel PLC (Telecommunication Services)+(s)..... 8,687 431,421
Kingfisher PLC (Retail)(s)....................... 114,500 941,924
Lloyds TSB Group PLC (Banking)(s)................ 435,250 4,276,905
Marconi PLC (Telecommunications-Equipment)(s).... 183,000 2,295,016
MEPC PLC (Real Estate)(s)........................ 166,565 1,132,413
MFI Furniture Group PLC (Household
Products)(s)................................... 438,958 473,918
National Power PLC (Electric)(s)................. 126,589 576,395
Newco (Finance)(s)............................... 27,900 130,965
Northern Foods PLC (Food, Beverages &
Tobacco)(s).................................... 211,421 335,773
Nycomed Amersham PLC (Medical Supplies)(s)....... 105,464 810,246
Ocean Group PLC (Transport & Services)(s)........ 46,000 884,588
Pearson PLC (Broadcasting & Publishing)(s)....... 62,000 2,144,923
Prudential Corp. PLC (Insurance)(s).............. 125,700 1,939,293
<CAPTION>
SECURITY DESCRIPTION SHARES VALUE
------------------------------------------------- ------------ -------------
<S> <C> <C>
UNITED KINGDOM (CONTINUED)
Reckitt Benckiser PLC (Household Products)(s).... 108,293 $ 1,111,566
Reuters Group PLC (Broadcasting &
Publishing)(s)................................. 125,200 2,250,897
Royal & Sun Alliance Insurance Group PLC
(Insurance)(s)................................. 231,554 1,298,891
Royal Bank of Scotland Group PLC (Banking)(s).... 98,300 1,532,717
Schroders PLC (Financial Services)(s)............ 27,900 426,511
ScottishPower PLC (Electric)(s).................. 152,900 1,230,306
Sema Group PLC (Computer Software)(s)............ 46,700 754,098
Smith & Nephew PLC (Medical Supplies)(s)......... 181,200 524,519
SmithKline Beecham PLC (Pharmaceuticals)(s)...... 384,300 5,282,547
Standard Chartered PLC (Banking)(s).............. 87,900 1,184,195
Tesco PLC (Retail)(s)............................ 424,700 1,455,317
The Sage Goup PLC (Broadcasting &
Publishing)(s)................................. 109,500 1,218,190
TI Group PLC (Diversified Manufacturing)(s)...... 68,000 371,069
Trinity Mirror PLC (Broadcasting &
Publishing)(s)................................. 47,000 366,601
United News & Media PLC (Broadcasting &
Publishing)(s)................................. 39,000 498,560
Vodafone AirTouch PLC (Telecommunications)(s).... 3,624,901 16,703,698
Williams PLC (Diversified Manufacturing)(s)...... 95,000 538,844
Woolwich PLC (Financial Services)(s)............. 147,200 718,035
WPP Group PLC (Broadcasting & Publishing)(s)..... 61,200 990,155
------------
105,913,166
------------
TOTAL COMMON STOCK (COST $398,571,660)......... 521,348,477
------------
</TABLE>
The Accompanying Notes are an Integral Part of the Financial Statements.
24
<PAGE>
THE INTERNATIONAL EQUITY PORTFOLIO
SCHEDULE OF INVESTMENTS (UNAUDITED) (CONTINUED)
APRIL 30, 2000
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SECURITY DESCRIPTION SHARES VALUE
------------------------------------------------- ------------ -------------
<S> <C> <C>
CONVERTIBLE PREFERRED STOCKS (0.1%)
JAPAN (0.1%)
AB International Cayman Trust, 0.500% (Banking)
(cost $340,225)................................ 56,000,000 $ 541,476
------------
PREFERRED STOCK (0.9%)
AUSTRALIA (0.6%)
News Corp. Ltd. (Broadcasting &
Publishing)(s)................................. 319,863 3,437,902
------------
GERMANY (0.3%)
ProSieben Media AG (Broadcasting &
Publishing)(s)................................. 9,034 808,401
Volkswagen AG (Automotive)(s).................... 30,361 686,124
------------
1,494,525
------------
TOTAL PREFERRED STOCK (COST $3,795,717)........ 4,932,427
------------
<CAPTION>
PRINCIPAL
AMOUNT
------------
<S> <C> <C>
CONVERTIBLE BONDS (0.9%)
(IN JPY)
-----------
JAPAN (0.9%)
Sanwa International Finance Trust, 1.25% due
07/31/05....................................... $60,000,000 567,661
Yamanouchi Pharmaceutical Co. Ltd., 1.25% due
03/31/14....................................... 60,000,000 4,253,861
------------
TOTAL CONVERTIBLE BONDS (COST $2,186,436)...... 4,821,522
------------
<CAPTION>
PRINCIPAL
SECURITY DESCRIPTION AMOUNT VALUE
------------------------------------------------- ------------ -------------
<S> <C> <C>
SHORT-TERM INVESTMENTS (0.5%)
U.S. TREASURY OBLIGATIONS (0.5%)
(IN USD)
-----------
United States Treasury Bills, 6.11%(y) due
10/12/00, (cost $2,803,342).................... $ 2,880,000 $ 2,803,104
------------
TOTAL INVESTMENTS (COST $407,697,380) (97.8%)..................
534,447,006
OTHER ASSETS IN EXCESS OF LIABILITIES (2.2%)...................
11,816,578
------------
NET ASSETS (100.0%)............................................ $546,263,584
============
</TABLE>
------------------------------
Note: The aggregate gross unrealized appreciation and depreciation was
$150,587,417 and $23,837,791, respectively, resulting in net unrealized
appreciation of investments of $126,749,626.
+ - Non-income producing security.
(s) Security is fully or partially segregated with custodian as collateral for
futures contracts or with broker as initial margin for futures contracts.
$209,108,193 of the market value has been segregated.
(y) Yield to maturity.
SDR - Swedish Depository receipt
JPY - Japanese Yen
The Accompanying Notes are an Integral Part of the Financial Statements.
25
<PAGE>
THE INTERNATIONAL EQUITY PORTFOLIO
SCHEDULE OF INVESTMENTS (UNAUDITED) (CONTINUED)
APRIL 30, 2000
--------------------------------------------------------------------------------
INDUSTRY DIVERSIFICATION
<TABLE>
<CAPTION>
PERCENT OF
TOTAL INVESTMENTS
-----------------
<S> <C>
Telecommunications................................ 7.6%
Pharmaceuticals................................... 7.5%
Banking........................................... 7.4%
Electronics....................................... 6.2%
Financial Services................................ 6.1%
Telecommunications - Equipment.................... 5.7%
Telecommunications - Services..................... 4.5%
Broadcasting & Publishing......................... 4.3%
Food, Beverages & Tobacco......................... 4.0%
Chemicals......................................... 3.8%
Insurance......................................... 3.8%
Utilities......................................... 3.5%
Retail............................................ 3.3%
Automotive........................................ 3.2%
Oil - Services.................................... 3.2%
Computer Peripherals.............................. 2.6%
Oil - Production.................................. 2.6%
Computer Software................................. 2.4%
Electric.......................................... 1.8%
Electrical Equipment.............................. 1.7%
Metals & Mining................................... 1.2%
Building Materials................................ 1.0%
Transport & Services.............................. 1.0%
Forest Products & Paper........................... 0.8%
Real Estate....................................... 0.8%
Wholesale & International Trade................... 0.8%
Diversified Manufacturing......................... 0.7%
Holding Companies................................. 0.7%
Multi-Industry.................................... 0.7%
Capital Goods..................................... 0.6%
Machinery......................................... 0.6%
Railroads......................................... 0.6%
Construction & Housing............................ 0.5%
Information Processing............................ 0.5%
Short-Term........................................ 0.5%
Automotive Supplies............................... 0.4%
Natural Gas....................................... 0.4%
Aerospace......................................... 0.3%
Communications.................................... 0.3%
Entertainment, Leisure & Media.................... 0.3%
Gas Exploration................................... 0.3%
Household Products................................ 0.3%
Restaurants & Hotels.............................. 0.3%
Truck & Freight Carriers.......................... 0.3%
Airlines.......................................... 0.2%
Biotechnology..................................... 0.2%
Medical Supplies.................................. 0.2%
Distributors...................................... 0.1%
Finance........................................... 0.1%
Manufacturing..................................... 0.1%
-----
100.0%
=====
</TABLE>
The Accompanying Notes are an Integral Part of the Financial Statements.
26
<PAGE>
THE INTERNATIONAL EQUITY PORTFOLIO
STATEMENT OF ASSETS AND LIABILITIES (UNAUDITED)
APRIL 30, 2000
--------------------------------------------------------------------------------
<TABLE>
<S> <C>
ASSETS
Investments at Value (Cost $407,697,380 ) $534,447,006
Foreign Currency at Value (Cost $15,223,513 ) 15,093,129
Receivable for Investments Sold 4,571,596
Unrealized Appreciation of Forward Foreign
Currency Contracts 3,020,660
Dividends and Interest Receivable 1,190,617
Foreign Tax Reclaim Receivable 682,769
Prepaid Trustees' Fees 517
Prepaid Expenses and Other Assets 1,927
------------
Total Assets 559,008,221
------------
LIABILITIES
Payable for Investments Purchased 6,426,437
Unrealized Depreciation of Forward Foreign
Currency Contracts 3,094,286
Payable to Custodian 2,726,577
Advisory Fee Payable 280,349
Variation Margin Payable 82,397
Administrative Services Fee Payable 11,318
Administration Fee Payable 523
Fund Services Fee Payable 419
Accrued Expenses 122,331
------------
Total Liabilities 12,744,637
------------
NET ASSETS
Applicable to Investors' Beneficial Interests $546,263,584
============
</TABLE>
The Accompanying Notes are an Integral Part of the Financial Statements.
27
<PAGE>
THE INTERNATIONAL EQUITY PORTFOLIO
STATEMENT OF OPERATIONS (UNAUDITED)
FOR THE SIX MONTHS ENDED APRIL 30, 2000
--------------------------------------------------------------------------------
<TABLE>
<S> <C> <C>
INVESTMENT INCOME
Dividend Income (Net of Foreign Withholding Tax
of $599,619) $ 3,471,154
Interest Income 332,886
-----------
Investment Income 3,804,040
EXPENSES
Advisory Fee $ 1,735,754
Custodian Fees and Expenses 382,170
Administrative Services Fee 71,127
Professional Fees and Expenses 26,680
Fund Services Fee 4,873
Printing Expenses 4,310
Trustees' Fees and Expenses 3,468
Administration Fee 2,465
Insurance Expense 827
Miscellaneous 62
-----------
Total Expenses 2,231,736
-----------
NET INVESTMENT INCOME 1,572,304
NET REALIZED GAIN ON
Investment Transactions 36,055,175
Futures Contracts 6,834,702
Foreign Currency Transactions 1,024,747
-----------
Net Realized Gain 43,914,624
NET CHANGE IN UNREALIZED APPRECIATION OF
Investments 1,725,473
Futures Contracts (836,625)
Foreign Currency Contracts and Translations (571,099)
-----------
Net Change in Unrealized Appreciation 317,749
-----------
NET INCREASE IN NET ASSETS RESULTING FROM
OPERATIONS $45,804,677
===========
</TABLE>
The Accompanying Notes are an Integral Part of the Financial Statements.
28
<PAGE>
THE INTERNATIONAL EQUITY PORTFOLIO
STATEMENT OF CHANGES IN NET ASSETS
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
FOR THE SIX
MONTHS ENDED FOR THE FISCAL
APRIL 30, 2000 YEAR ENDED
(UNAUDITED) OCTOBER 31, 1999
-------------- ----------------
<S> <C> <C>
INCREASE IN NET ASSETS
FROM OPERATIONS
Net Investment Income $ 1,572,304 $ 4,569,191
Net Realized Gain on Investments 43,914,624 28,815,778
Net Change in Unrealized Appreciation of
Investments 317,749 70,990,877
------------ ---------------
Net Increase in Net Assets Resulting from
Operations 45,804,677 104,375,846
------------ ---------------
TRANSACTIONS IN INVESTORS' BENEFICIAL INTERESTS
Contributions 219,289,357 281,385,364
Withdrawals (254,886,066) (293,180,212)
------------ ---------------
Net Decrease from Investors' Transactions (35,596,709) (11,794,848)
------------ ---------------
Total Increase in Net Assets 10,207,968 92,580,998
NET ASSETS
Beginning of Period 536,055,616 443,474,618
------------ ---------------
End of Period $546,263,584 $ 536,055,616
============ ===============
</TABLE>
--------------------------------------------------------------------------------
SUPPLEMENTARY DATA
--------------------------------------------------------------------------------
Selected data for a share outstanding throughout each period are as follows:
<TABLE>
<CAPTION>
FOR THE
SIX MONTHS ENDED FOR THE FISCAL YEAR ENDED OCTOBER 31,
APRIL 30, 2000 --------------------------------------
(UNAUDITED) 1999 1998 1997 1996 1995
---------------- ------ ------ ------ ------ ------
<S> <C> <C> <C> <C> <C> <C>
RATIOS TO AVERAGE NET ASSETS
Net Expenses 0.77%(a) 0.80% 0.79% 0.77% 0.79% 0.82%
Net Investment Income 0.54%(a) 0.95% 1.09% 1.47% 1.39% 1.31%
Portfolio Turnover 40% 70% 74% 67% 57% 59%
</TABLE>
------------------------
(a) Annualized.
The Accompanying Notes are an Integral Part of the Financial Statements.
29
<PAGE>
THE INTERNATIONAL EQUITY PORTFOLIO
NOTES TO FINANCIAL STATEMENTS (UNAUDITED)
APRIL 30, 2000
--------------------------------------------------------------------------------
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 commenced operations on October 4, 1993.
The portfolio's investment objective is to provide a high total return from a
portfolio of equity securities of foreign companies. 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 portfolio values securities that are listed on an exchange using
prices supplied daily by an independent pricing service that are based on
the last traded price on a national securities exchange or in the absence
of recorded trades, at the readily available mean of the bid and asked
prices on such exchange, if such exchange or market constitutes the
broadest and most representative market for the security. Securities
listed on a foreign exchange are valued at the last traded price or in the
absence of recorded trades, at the readily available mean of the bid and
asked prices on such exchange available before the time when net assets
are valued. Independent pricing service procedures may also include the
use of prices based on yields or prices of securities of comparable
quality, coupon, maturity and type, indications as to the values from
dealers, operating data, and general market conditions. Unlisted
securities are valued at the average of the quoted bid and asked prices in
the over-the-counter market provided by a principal market maker or
dealer. If prices are not supplied by the portfolio's independent pricing
service or principal market maker or dealer, such securities are priced
using fair values in accordance with procedures adopted by the portfolio's
trustees. All short-term securities with a remaining maturity of sixty
days or less are valued using 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 exchange rates
at the end of the period. Purchases, sales, income and expenses are
translated at the
30
<PAGE>
THE INTERNATIONAL EQUITY PORTFOLIO
NOTES TO FINANCIAL STATEMENTS (UNAUDITED) (CONTINUED)
APRIL 30, 2000
--------------------------------------------------------------------------------
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. Amortization is calculated using the scientific
method. 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.
e) 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
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.
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
31
<PAGE>
THE INTERNATIONAL EQUITY PORTFOLIO
NOTES TO FINANCIAL STATEMENTS (UNAUDITED) (CONTINUED)
APRIL 30, 2000
--------------------------------------------------------------------------------
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) The portfolio has an Investment Advisory Agreement with J.P. Morgan
Investment Management Inc. ("JPMIM"), a wholly owned subsidiary of J.P.
Morgan & Co. Incorporated ("J.P. Morgan"). Under the terms of the
agreement, the portfolio pays JPMIM at an annual rate of 0.60% of the
portfolio's average daily net assets. For the six months ended April 30,
2000, such fees amounted to $1,735,754.
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, 2000, the
fee for these services amounted to $2,465.
c) The portfolio has an Administrative Services Agreement (the "Services
Agreement") with Morgan Guaranty Trust Co. of New York ("Morgan"), a
wholly owned subsidiary of J.P. 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, 2000, the fee for these services
amounted to $71,127.
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 $4,873 for the six months ended April 30, 2000.
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
32
<PAGE>
THE INTERNATIONAL EQUITY PORTFOLIO
NOTES TO FINANCIAL STATEMENTS (UNAUDITED) (CONTINUED)
APRIL 30, 2000
--------------------------------------------------------------------------------
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 $900.
3. INVESTMENT TRANSACTIONS
Investment transactions (excluding short-term investments) for the six
months ended April 30, 2000 were as follows:
<TABLE>
<CAPTION>
COST OF PROCEEDS
PURCHASES FROM SALES
------------ ------------
<S> <C> <C>
$218,971,218 $221,193,653
</TABLE>
At April 30, 2000, the portfolio had open forward currency contracts as
follows:
<TABLE>
<CAPTION>
U.S. DOLLAR NET UNREALIZED
CONTRACTUAL VALUE AT APPRECIATION/
PURCHASE CONTRACTS VALUE 4/30/00 (DEPRECIATION)
------------------ ----------- ----------- --------------
<S> <C> <C> <C>
British Pound, 4,188,918, expiring 06/21/00...... $ 6,605,612 $ 6,557,589 $ (48,023)
Euro, 44,720,341, expiring 06/21/00.............. 42,760,189 40,900,286 (1,859,903)
Hong Kong Dollar, 33,814,232 expiring 06/21/00... 4,344,069 4,339,089 (4,980)
Japanese Yen, 3,798,789,425 expiring 06/21/00.... 36,660,746 35,480,632 (1,180,114)
Swiss Franc, 1,000,000, expiring 05/02/00........ 580,414 581,226 812
</TABLE>
<TABLE>
<CAPTION>
U.S. DOLLAR NET UNREALIZED
SETTLEMENT VALUE AT APPRECIATION/
SALES CONTRACTS VALUE 4/30/00 (DEPRECIATION)
--------------- ----------- ----------- --------------
<S> <C> <C> <C>
Australian Dollar 4,272,623, expiring 06/21/00... $ 2,630,483 $ 2,494,227 $ 136,256
British Pound, 4,188,918, expiring 06/21/00...... 6,632,945 6,557,588 75,357
British Pound, 1,368,053, expiring 05/02/00...... 2,149,614 2,140,593 9,021
Euro, 26,798,413, expiring 06/21/00.............. 25,730,720 24,509,267 1,221,453
Hong Kong Dollar, 22,676,748, expiring
06/21/00........................................ 2,911,000 2,909,912 1,088
Japanese Yen, 4,181,878,612, expiring 06/21/00... 40,245,282 39,058,679 1,186,603
New Zealand Dollar, 3,887,563, expiring
06/21/00........................................ 1,906,850 1,889,999 16,851
Swedish Krona, 16,747,000, expiring 06/21/00..... 1,927,158 1,876,899 50,259
Swiss Franc, 12,990,003, expiring 06/21/00....... 7,908,439 7,586,745 321,694
-------------
NET UNREALIZED APPRECIATION ON FORWARD FOREIGN
CURRENCY CONTRACTS.............................. $ (73,626)
=============
</TABLE>
33
<PAGE>
THE INTERNATIONAL EQUITY PORTFOLIO
NOTES TO FINANCIAL STATEMENTS (UNAUDITED) (CONTINUED)
APRIL 30, 2000
--------------------------------------------------------------------------------
At April 30, 2000, the portfolio had open future contracts as follows:
<TABLE>
<CAPTION>
NET
UNREALIZED
APPRECIATION/ CURRENT MARKET VALUE
CONTRACTS LONG (DEPRECIATION) OF CONTRACTS
-------------- -------------- --------------------
<S> <C> <C> <C>
FTSE 100 Index, expiring June 2000............... 8 $ 14,299 $ 799,186
Hang Seng Index, expiring May 2000............... 86 (116,894) 8,551,199
Topix Index, expiring June 2000.................. 93 (134,411) 14,263,012
------------- ------------- -------------------
Totals........................................... 187 $ (237,006) $ 23,613,397
============= ============= ===================
</TABLE>
<TABLE>
<CAPTION>
NET
UNREALIZED
APPRECIATION/ CURRENT MARKET VALUE
CONTRACTS SHORT (DEPRECIATION) OF CONTRACTS
--------------- -------------- --------------------
<S> <C> <C> <C>
SPI Futures, expiring June 2000.................. 74 $ 111,916 $ 3,428,784
DJ Euro Stoxx 50 Index, expiring June 2000....... 159 (108,363) 7,690,651
-------------- ------------- -------------------
Totals........................................... 233 $ 3,553 $ 11,119,435
============== ============= ===================
</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.
34
