<PAGE>
THE U.S. EQUITY PORTFOLIO
SCHEDULE OF INVESTMENTS (UNAUDITED)
NOVEMBER 30, 1997
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SECURITY DESCRIPTION SHARES VALUE
- ------------------------------------------------- ----------- -------------
<S> <C> <C>
COMMON STOCKS (98.0%)
BASIC INDUSTRIES (5.1%)
CHEMICALS (2.5%)
Albemarle Corp................................... 119,500 $ 2,980,031
E.I. du Pont de Nemours & Co..................... 151,000 9,144,937
Union Carbide Corp............................... 233,600 10,307,600
-------------
22,432,568
-------------
FOREST PRODUCTS & PAPER (1.4%)
Temple-Inland, Inc............................... 224,900 12,847,412
-------------
METALS & MINING (1.2%)
Allegheny Teledyne, Inc.......................... 420,672 10,832,304
-------------
TOTAL BASIC INDUSTRIES......................... 46,112,284
-------------
CONSUMER GOODS & SERVICES (23.1%)
AUTOMOTIVE (0.8%)
Goodyear Tire and Rubber Co...................... 113,500 6,888,031
-------------
BROADCASTING & PUBLISHING (3.6%)
Tele-Communications Inc., Series A+.............. 380,329 8,711,911
Tele-Communications TCI Ventures Group+.......... 608,871 13,832,788
U.S. West Media Group+........................... 375,100 9,963,594
-------------
32,508,293
-------------
ENTERTAINMENT, LEISURE & MEDIA (2.4%)
International Game Technology.................... 515,100 12,877,500
Time Warner, Inc................................. 159,900 9,314,175
-------------
22,191,675
-------------
FOOD, BEVERAGES & TOBACCO (7.4%)
Anheuser Busch Companies, Inc.................... 398,400 17,205,900
General Mills, Inc............................... 241,000 17,834,000
Philip Morris Companies, Inc..................... 326,500 14,202,750
Ralston-Ralston Purina Group..................... 196,900 18,311,700
-------------
67,554,350
-------------
HOUSEHOLD PRODUCTS (2.5%)
Procter & Gamble Co.............................. 301,260 22,989,904
-------------
<CAPTION>
SECURITY DESCRIPTION SHARES VALUE
- ------------------------------------------------- ----------- -------------
<S> <C> <C>
RETAIL (5.4%)
Circuit City Stores, Inc......................... 313,900 $ 10,299,844
Dillard's Inc. - Class A......................... 149,200 5,455,125
Federated Department Stores, Inc.+............... 210,700 9,600,019
Toys 'R' Us, Inc.+............................... 549,400 18,748,275
Wal-Mart Stores, Inc............................. 124,100 4,956,244
-------------
49,059,507
-------------
TEXTILES (1.0%)
Fruit of the Loom, Inc., Class A+................ 389,700 9,084,881
-------------
TOTAL CONSUMER GOODS & SERVICES................ 210,276,641
-------------
ENERGY (8.0%)
OIL-PRODUCTION (7.5%)
Atlantic Richfield Co............................ 142,300 11,597,450
British Petroleum Co. (ADR)...................... 980 81,340
Exxon Corp....................................... 293,400 17,897,400
Mobil Corp....................................... 218,000 15,682,375
Tosco Corp....................................... 712,800 23,210,550
-------------
68,469,115
-------------
OIL-SERVICES (0.5%)
Cooper Cameron Corp.+............................ 73,700 4,491,094
-------------
TOTAL ENERGY................................... 72,960,209
-------------
FINANCE (15.5%)
BANKING (7.2%)
Chase Manhattan Corp............................. 101,400 11,014,575
First Union Corp................................. 454,300 22,147,125
Fleet Financial Group, Inc....................... 132,700 8,766,494
Providian Financial Corp......................... 306,600 13,509,562
Washington Mutual, Inc........................... 154,900 10,688,100
-------------
66,125,856
-------------
FINANCIAL SERVICES (2.8%)
Federal National Mortgage Association............ 308,300 16,282,094
Travelers Group, Inc............................. 190,518 9,621,159
-------------
25,903,253
-------------
</TABLE>
The Accompanying Notes are an Integral Part of the Financial Statements.
16
<PAGE>
THE U.S. EQUITY PORTFOLIO
SCHEDULE OF INVESTMENTS (UNAUDITED) (CONTINUED)
NOVEMBER 30, 1997
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SECURITY DESCRIPTION SHARES VALUE
- ------------------------------------------------- ----------- -------------
<S> <C> <C>
INSURANCE (3.1%)
AMBAC, Inc....................................... 352,700 $ 14,152,087
Marsh & McLennan Companies, Inc.................. 187,700 13,971,919
-------------
28,124,006
-------------
REAL ESTATE INVESTMENT TRUSTS (2.4%)
Beacon Properties Corp........................... 214,200 9,639,000
Starwood Lodging Trust........................... 234,900 12,596,512
-------------
22,235,512
-------------
TOTAL FINANCE.................................. 142,388,627
-------------
HEALTHCARE (12.0%)
HEALTH SERVICES (2.9%)
Humana, Inc.+.................................... 411,200 9,123,500
United Healthcare Corp........................... 337,900 17,591,919
-------------
26,715,419
-------------
MEDICAL SUPPLIES (1.3%)
Bausch & Lomb, Inc............................... 293,700 11,637,862
-------------
PHARMACEUTICALS (7.8%)
Alza Corp.+...................................... 322,500 8,606,719
Bristol-Myers Squibb Co.......................... 96,600 9,044,175
Crescendo Pharmaceuticals Corp.+................. 16,095 183,081
Forest Laboratories, Inc.+....................... 105,800 4,734,550
Pfizer, Inc...................................... 118,600 8,628,150
Schering-Plough Corp............................. 235,800 14,781,712
Warner-Lambert Co................................ 182,200 25,485,225
-------------
71,463,612
-------------
TOTAL HEALTHCARE............................... 109,816,893
-------------
INDUSTRIAL PRODUCTS & SERVICES (7.7%)
BUILDING MATERIALS (0.5%)
Johns Manville Corp.............................. 410,400 4,488,750
-------------
DIVERSIFIED MANUFACTURING (4.6%)
AlliedSignal, Inc................................ 371,200 13,780,800
Cooper Industries, Inc........................... 261,800 13,515,425
Tyco International Ltd........................... 367,646 14,430,105
-------------
41,726,330
-------------
<CAPTION>
SECURITY DESCRIPTION SHARES VALUE
- ------------------------------------------------- ----------- -------------
<S> <C> <C>
ELECTRICAL EQUIPMENT (1.0%)
Anixter International, Inc.+..................... 484,200 $ 8,685,337
-------------
POLLUTION CONTROL (1.6%)
Waste Management, Inc............................ 607,700 14,964,613
-------------
TOTAL INDUSTRIAL PRODUCTS & SERVICES........... 69,865,030
-------------
TECHNOLOGY (15.9%)
AEROSPACE (1.9%)
Boeing Co........................................ 170,100 9,036,563
Coltec Industries, Inc.+......................... 354,225 8,257,870
-------------
17,294,433
-------------
COMPUTER PERIPHERALS (2.0%)
EMC Corp.+....................................... 612,400 18,563,375
-------------
COMPUTER SOFTWARE (1.1%)
Autodesk, Inc.................................... 146,200 5,614,994
Oracle Corp.+.................................... 133,300 4,436,391
-------------
10,051,385
-------------
COMPUTER SYSTEMS (4.4%)
International Business Machines Corp............. 149,100 16,335,769
Nextlevel Systems, Inc.+......................... 681,300 9,027,225
Sun Microsystems, Inc.+.......................... 403,200 14,502,600
-------------
39,865,594
-------------
ELECTRONICS (5.0%)
Bay Networks, Inc.+.............................. 582,900 17,523,431
Cabletron Systems, Inc.+......................... 461,100 10,605,300
Perkin-Elmer Corp................................ 130,600 9,084,863
Sensormatic Electronics Corp..................... 538,900 8,757,125
-------------
45,970,719
-------------
SEMICONDUCTORS (1.2%)
General Semiconductor, Inc.+..................... 170,300 1,852,013
Texas Instruments, Inc........................... 178,500 8,791,125
-------------
10,643,138
-------------
</TABLE>
The Accompanying Notes are an Integral Part of the Financial Statements.
17
<PAGE>
THE U.S. EQUITY PORTFOLIO
SCHEDULE OF INVESTMENTS (UNAUDITED) (CONTINUED)
NOVEMBER 30, 1997
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SECURITY DESCRIPTION SHARES VALUE
- ------------------------------------------------- ----------- -------------
<S> <C> <C>
TELECOMMUNICATIONS-EQUIPMENT (0.3%)
Commscope, Inc.+................................. 227,033 $ 2,483,173
-------------
TOTAL TECHNOLOGY............................... 144,871,817
-------------
TRANSPORTATION (1.2%)
RAILROADS (1.2%)
CSX Corp......................................... 203,200 10,629,900
-------------
UTILITIES (9.5%)
ELECTRIC (2.2%)
Northern States Power Co......................... 108,100 5,931,988
Southern Co...................................... 319,000 7,656,000
Western Resources, Inc........................... 165,200 6,453,125
-------------
20,041,113
-------------
GAS-PIPELINES (1.0%)
Enron Corp....................................... 237,600 9,207,000
-------------
TELEPHONE (6.3%)
GTE Corp......................................... 281,500 14,233,344
SBC Communications, Inc.......................... 178,500 12,997,031
Sprint Corp...................................... 253,200 14,828,025
WorldCom, Inc.+.................................. 484,900 15,531,953
-------------
57,590,353
-------------
TOTAL UTILITIES................................ 86,838,466
-------------
TOTAL COMMON STOCKS
(COST $736,361,493)........................... 893,759,867
-------------
<CAPTION>
PRINCIPAL
SECURITY DESCRIPTION AMOUNT VALUE
- ------------------------------------------------- ----------- -------------
<S> <C> <C>
CONVERTIBLE BONDS (0.6%)
FINANCE (0.6%)
FINANCIAL SERVICES (0.6%)
Berkshire Hathaway, Inc., Senior Exchangeable
Notes; 1.00% due 12/03/01. Exchangeable for
shares of Travelers Group, Inc. Common Stock,
(cost $3,567,926).............................. $ 3,800,000 $ 5,685,750
-------------
TOTAL INVESTMENTS (COST $739,929,419) (98.6%).................
899,445,617
OTHER ASSETS IN EXCESS OF LIABILITIES (1.4%)..................
12,892,771
-------------
NET ASSETS (100.0%)........................................... $ 912,338,388
-------------
-------------
</TABLE>
- ------------------------------
+ Non-income producing security.
Note: Based on the cost of securities of $742,042,594 for Federal Income Tax
Purposes at November 30, 1997, the aggregate gross unrealized appreciation and
depreciation was $175,876,482 and $18,473,459, respectively, resulting in net
unrealized appreciation of $157,403,023.
(ADR) - Securities whose value is determined or significantly influenced by
trading on exchanges not located in the United States or Canada. ADR after the
name of a foreign holding stands for American Depositary Receipt, representing
ownership of foreign securities on deposit with a domestic custodian bank.
The Accompanying Notes are an Integral Part of the Financial Statements.
18
<PAGE>
THE U.S. EQUITY PORTFOLIO
STATEMENT OF ASSETS AND LIABILITIES (UNAUDITED)
NOVEMBER 30, 1997
- --------------------------------------------------------------------------------
<TABLE>
<S> <C>
ASSETS
Investments at Value (Cost $739,929,419 ) $899,445,617
Receivable for Investments Sold 13,518,311
Dividends Receivable 1,592,618
Interest Receivable 18,894
Prepaid Trustees' Fees 2,370
Prepaid Expenses and Other Assets 6,391
------------
Total Assets 914,584,201
------------
LIABILITIES
Payable for Investments Purchased 1,785,779
Advisory Fee Payable 300,372
Payable to Custodian 75,559
Custody Fee Payable 44,405
Administrative Services Fee Payable 22,680
Fund Services Fee Payable 3,299
Administration Fee Payable 979
Accrued Expenses 12,740
------------
Total Liabilities 2,245,813
------------
NET ASSETS
Applicable to Investors' Beneficial Interests $912,338,388
------------
------------
</TABLE>
The Accompanying Notes are an Integral Part of the Financial Statements.
19
<PAGE>
THE U.S. EQUITY PORTFOLIO
STATEMENT OF OPERATIONS (UNAUDITED)
FOR THE SIX MONTHS ENDED NOVEMBER 30, 1997
- --------------------------------------------------------------------------------
<TABLE>
<S> <C> <C>
INVESTMENT INCOME
Dividend Income (Net of Foreign Withholding Tax
of $29,438 ) $ 6,183,001
Interest Income 609,255
-----------
Investment Income 6,792,256
EXPENSES
Advisory Fee $1,857,873
Administrative Services Fee 141,388
Custodian Fees and Expenses 92,643
Professional Fees and Expenses 22,816
Fund Services Fee 17,272
Administration Fee 10,478
Trustees' Fees and Expenses 8,958
Printing Expenses 8,458
Insurance Expense 1,672
Registration Fees 306
Miscellaneous 50
----------
Total Expenses 2,161,914
-----------
NET INVESTMENT INCOME 4,630,342
NET REALIZED GAIN ON INVESTMENTS 93,896,398
NET CHANGE IN UNREALIZED DEPRECIATION OF
INVESTMENTS (2,890,629)
-----------
NET INCREASE IN NET ASSETS RESULTING FROM
OPERATIONS $95,636,111
-----------
-----------
</TABLE>
The Accompanying Notes are an Integral Part of the Financial Statements.
20
<PAGE>
THE U.S. EQUITY PORTFOLIO
STATEMENT OF CHANGES IN NET ASSETS
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
FOR THE SIX
MONTHS ENDED FOR THE FISCAL
NOVEMBER 30, 1997 YEAR ENDED
(UNAUDITED) MAY 31, 1997
----------------- --------------
<S> <C> <C>
INCREASE IN NET ASSETS
FROM OPERATIONS
Net Investment Income $ 4,630,342 $ 11,014,128
Net Realized Gain on Investments 93,896,398 114,253,160
Net Change in Unrealized Appreciation
(Depreciation) of Investments (2,890,629) 54,102,181
----------------- --------------
Net Increase in Net Assets Resulting from
Operations 95,636,111 179,369,469
----------------- --------------
TRANSACTIONS IN INVESTORS' BENEFICIAL INTERESTS
Contributions 96,879,681 205,179,647
Withdrawals (139,437,621) (244,500,948)
----------------- --------------
Net Decrease from Investors' Transactions (42,557,940) (39,321,301)
----------------- --------------
Total Increase in Net Assets 53,078,171 140,048,168
NET ASSETS
Beginning of Period 859,260,217 719,212,049
----------------- --------------
End of Period $ 912,338,388 $ 859,260,217
----------------- --------------
----------------- --------------
</TABLE>
- --------------------------------------------------------------------------------
SUPPLEMENTARY DATA
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
FOR THE PERIOD
FOR THE FOR THE FISCAL YEAR JULY 19, 1993
SIX MONTHS ENDED ENDED MAY 31, (COMMENCEMENT OF
NOVEMBER 30, 1997 ------------------------------ OPERATIONS) TO
(UNAUDITED) 1997 1996 1995 MAY 31, 1994
----------------- ------ ------ ------ ----------------
<S> <C> <C> <C> <C> <C>
RATIOS TO AVERAGE NET ASSETS
Expenses 0.47%(a) 0.47% 0.46% 0.51% 0.53%(a)
Net Investment Income 1.00%(a) 1.44% 2.20% 2.12% 1.79%(a)
Portfolio Turnover 58% 99% 85% 71% 76%+
Average Broker Commissions 0.0464 0.0506 -- -- --
</TABLE>
- ------------------------
(a) Annualized.
+ Portfolio turnover is for the twelve month period ended May 31, 1994, and
includes the portfolio activity of the Portfolio's predecessor entity, The
Pierpont Equity Fund, for the period June 1, 1993 to June 18, 1993.
The Accompanying Notes are an Integral Part of the Financial Statements.
21
<PAGE>
THE U.S. EQUITY PORTFOLIO
NOTES TO FINANCIAL STATEMENTS (UNAUDITED)
NOVEMBER 30, 1997
- --------------------------------------------------------------------------------
1. ORGANIZATION AND SIGNIFICANT ACCOUNTING POLICIES
The U.S. 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 July 19, 1993 and received a
contribution of certain assets and liabilities, including securities, with a
value of $209,477,219 on that date from The Pierpont Equity Fund in exchange for
a beneficial interest in the Portfolio. At that date, net unrealized
appreciation of $12,039,552 was included in the contributed securities. On
October 31, 1993, the Portfolio received a contribution of securities and
certain assets and liabilities, with a market value and cost of $128,337,342
from the JPM North America Fund, Ltd., in exchange for a beneficial interest in
the Portfolio. The Portfolio's investment objective is to provide a high total
return from a portfolio of selected equity securities. The Declaration of Trust
permits the Trustees to issue an unlimited number of beneficial interests in the
Portfolio.
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 exchange. Securities listed on a foreign exchange
are valued at the last quoted sale price available before the time when
net assets are valued. Unlisted securities are valued at the average of
the quoted bid and asked prices in the over-the-counter market. Securities
or other assets for which market quotations are not readily available are
valued at fair value in accordance with procedures established by the
Portfolio's Trustees. Such procedures include the use of independent
pricing services, which use prices based upon yields or prices of
securities of comparable quality, coupon, maturity and type; indications
as to values from dealers; and general market conditions. All portfolio
securities with a remaining maturity of less than 60 days are valued at
amortized cost.
b) 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 will be 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
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
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 solely 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
22
<PAGE>
THE U.S. EQUITY PORTFOLIO
NOTES TO FINANCIAL STATEMENTS (UNAUDITED) (CONTINUED)
NOVEMBER 30, 1997
- --------------------------------------------------------------------------------
interest rates. 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 contract. At
November 30, 1997, the Portfolio had no open futures contracts.
c) Securities transactions are recorded on a trade-date basis. Dividend
income is recorded on the ex-dividend date or as of 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 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.
e) The Portfolio's custodian takes possession of the collateral pledged for
investments in repurchase agreements on behalf of the Portfolio. It is the
policy of the Portfolio to value the underlying collateral daily on a
mark-to-market basis to determine that the value, including accrued
interest, is at least equal to the repurchase price plus accrued interest.
In the event of default of the obligation to repurchase, the Portfolio has
the right to liquidate the collateral and apply the proceeds in
satisfaction of the obligation. Under certain circumstances, in the event
of default or bankruptcy by the other party to the agreement, realization
and/or retention of the collateral or proceeds may be subject to legal
proceedings.
2. TRANSACTIONS WITH AFFILIATES
a) The Portfolio has an Investment Advisory Agreement with Morgan Guaranty
Trust Company of New York ("Morgan"). Under the terms of the agreement,
the Portfolio pays Morgan at an annual rate of 0.40% of the Portfolio's
average daily net assets. For the six months ended November 30, 1997 this
fee amounted to $1,857,873.
b) The Portfolio has retained Funds Distributor, Inc. ("FDI"), a registered
broker-dealer to serve as the co-administrator and exclusive placement
agent. Under a Co-Administration Agreement between FDI and the Portfolio,
FDI provides administrative services necessary for the operations of the
Portfolio, furnishes office space and facilities required for conducting
the business of the Portfolio and pays the compensation of the 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 November 30, 1997, the fee
for these services amounted to $10,478.
c) The Portfolio has an Administrative Services Agreement (the "Services
Agreement") with Morgan under which Morgan is responsible for overseeing
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
23
<PAGE>
THE U.S. EQUITY PORTFOLIO
NOTES TO FINANCIAL STATEMENTS (UNAUDITED) (CONTINUED)
NOVEMBER 30, 1997
- --------------------------------------------------------------------------------
average daily net assets of the Portfolio and certain other portfolios for
which Morgan 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 November
30, 1997, the fee for these services amounted to $141,388.
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 $17,272 for the six months ended November 30, 1997.
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 represents 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 receives
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 $3,500.
3. INVESTMENT TRANSACTIONS
Investment transactions (excluding short-term investments) for the six months
ended November 30, 1997 were as follows:
<TABLE>
<CAPTION>
COST OF PROCEEDS
PURCHASES FROM SALES
------------ ------------
<S> <C>
$513,561,056 $546,402,830
</TABLE>
4. CREDIT AGREEMENT
The Portfolio is party to a revolving line of credit agreement as discussed more
fully in Note 4 of the Fund's Notes to the Financial Statements which are
included elsewhere in this report.
24
