OLD WESTBURY
FUNDS, INC.
Annual Report
October 31, 1999
Bessemer Trust
- ------------------
Investment Advisor
OLD WESTBURY CORE EQUITIES FUND
INVESTMENT ADVISOR'S REPORT
- -------------------------------------------------------------------------------
On a total return basis, the Old Westbury Core Equities Fund (the "Fund") was
up 0.23%* for the six months ended October 31, 1999, compared to a 2.8% increase
in the Standard & Poor's (S&P) 500 Index.** For the fiscal year ended October
31, 1999, the Core Equities Fund total return was 29.89%* compared to a 25.66%
return for the S&P 500 Index.**
While in aggregate, the stock market showed little change for the April-
October period, there was a 13% correction from the July high to the mid-
October low. During the summer, market leadership shifted dramatically toward
the technology sector which was the only S&P industry group to have a positive
rate-of-return in the third calendar quarter.
Starting in early July, we began to add substantially to our technology
holdings bringing our overall position to 37% of the portfolio. While we never
felt this industry would see much of a slowdown in the second half as
corporations locked down their operations ahead of the year 2000, there were
many who did not agree with us. This attitude has shifted in the last couple of
months and now there is a general agreement that demand will be solid for the
remainder of the year. The current bear story is that information technology
spending will fall sharply next year as the bulge in corporate spending
engendered by the necessity to fix the date problem in computer hardware and
software goes away. We do not agree. From our discussions with a wide variety of
corporations, we find a significant amount of projects have been deferred over
the last 18 months while the remediation efforts went forward. Next year we
anticipate companies "getting back to business" and feel technology expenditures
will remain strong.
* Past performance is no guarantee of future results. Investment return and
principal value will fluctuate so that an investor's shares, when redeemed,
may be worth more or less than their original cost.
** S&P 500 Index is an unmanaged capitalization-weighted index of 500 stocks
designed to measure performance of the broad domestic economy through changes
in the aggregate market value of 500 stocks representing all major
industries. Investments cannot be made directly in an index.
OLD WESTBURY CORE EQUITIES FUND
INVESTMENT ADVISOR'S REPORT
(Continued)
- -------------------------------------------------------------------------------
We remain firm believers in the Internet and the way it will transform
business as both a revenue generating and cost-cutting strategy. The technology
stocks in our Core Equities Fund are closely tied to the building and
development of the Internet. However, in the long run other corporations that
understand the economic revolution that is taking place and adjust their
business models to take advantage of the Internet will be recognized as stocks
of the "New Economy". To some degree this can already be seen in the market
place as some companies that understand and embrace the future, General Electric
for example, are rewarded much higher valuations than their peers who continue
to pursue a business-as-usual strategy.
While we trimmed our retail positions in the early part of the second quarter,
we have stayed overweighted in the retail sector. We are looking forward to a
strong Christmas season. As we see it, everyone is working, real wages are
rising, inflation is low, and optimism is high. That would seem to be a good
combination of factors pointing toward continued consumer spending.
Back in May, we shifted about 15% of the portfolio into more cyclical types of
stocks. Since then, the global recovery has lost some steam, but more
importantly, the Federal Reserve Board (the "Fed") and the central bankers of
Europe have begun to take an active role in slowing their economies. As a
result, our expectations for a developing worldwide recovery have been tempered,
and we have been reducing our holdings.
OLD WESTBURY CORE EQUITIES FUND
INVESTMENT ADVISOR'S REPORT
(Concluded)
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The graphic presentation here displayed consists of a line graph. The
corresponding components of the line graph are listed underneath. The Old
Westbury Core Equities Fund (the "Fund") is represented by a solid line and the
Standard & Poor's 500 Index (the "S&P 500") is represented by a broken line. The
line graph is a visual representation of a comparison of change in value of a
$10,000 hypothetical investment in the Fund and the S&P 500. The "x" axis
reflects computation periods from 03/02/98 to 10/31/99. The "y" axis is measured
in increments of $1,000 ranging from $9,000 to $14,000. The right margin
reflects the ending value of the $10,000 hypothetical investment in the Fund, as
compared to the S&P 500. The ending values were $13,002 and $13,282,
respectively.
Average Annual Total Returns
For the Period Ended October 31, 1999*
Old Westbury Core Equities Fund
-------------------------------
One Year............................................................... 29.89%
Since Inception (March 2, 1998)........................................ 17.21%
S&P 500 Index
-------------
One Year............................................................... 25.66%
March 2, 1998 to October 31, 1999...................................... 18.60%
The chart above illustrates the total value of a $10,000 investment from
inception with dividends and capital gains reinvested. The S & P 500 Index also
includes the reinvestment of dividends but does not include fees and expenses
associated with an investment in the Portfolio. This index is unmanaged.
*Past performance is no guarantee of future results. Investment return and
principal value will fluctuate, so that an investor's shares, when redeemed,
may be worth more or less than their original cost.
OLD WESTBURY GROWTH OPPORTUNITY FUND
INVESTMENT ADVISOR'S REPORT
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The six months from May 1 to October 31, 1999 was a difficult period for the
Old Westbury Growth Opportunity Fund (the "Growth Opportunity Fund"). The
spectacular rally in April in economically-sensitive issues across the entire
market capitalization spectrum began to unwind only one month later and was
completely reversed during the market correction from July to mid-October.
During the summer and especially this autumn, the disparities in the U.S. equity
market became increasingly pronounced. A shrinking number of stocks, largely
technology and related issues deemed to be winners or beneficiaries of the "New
Economy", enjoyed an accelerating uptrend. The balance of the market, in fact
the large majority of issues, fell victim to three rate hikes by the Fed, which
counter-balanced a generally favorable trend in corporate profits. All segments
of the market, with the notable exception of the NASDAQ, which is dominated by
large technology companies, experienced a serious setback, but the small and
mid-cap indices continued to lag the larger cap averages.* With less than a
fully weighted position in the technology sector, the Growth Opportunity Fund
performed poorly during this period on an absolute basis (5.6%)** but managed to
outperform its benchmark, the Russell 2500 Index (7.9%)+.
To address this unsatisfactory situation, a plan to restructure the portfolio
was set in motion shortly before the conclusion of the fiscal year. The primary
objectives of the initiative are (1) to substantially increase the technology
component of the Growth Opportunity Fund and (2) to place a greater emphasis on
high-growth as opposed to value equities throughout the portfolio. We are well
into the transition and have begun to see some positive results. Our belief is
that the performance of the Growth Opportunty Fund should improve by the end of
the first half of the current fiscal year (April 30, 2000).
* Small cap stocks have historically experienced greater volatility than larger
cap averages.
** Past performance is no guarantee of future results. Investment return and
principal value will fluctuate so that an investor's shares, when redeemed,
may be worth more or less than their original cost.
+ Russell 2500 Index is an unmanaged index that measures the performance of the
2,500 smallest companies in the Russell 3000 Index, which represents
approximately 23% of the total market capitalization of the Russell 3000
Index. Investments cannot be made directly in an index.
OLD WESTBURY GROWTH OPPORTUNITY FUND
INVESTMENT ADVISOR'S REPORT
(Concluded)
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The graphic presentation here displayed consists of a line graph. The
corresponding components of the line graph are listed underneath. The Old
Westbury Growth Opportunity Fund (the "Fund") is represented by a solid line and
the Russell 2500 Index (the "RI2500") is represented by a broken line. The line
graph is a visual representation of a comparison of change in value of a $10,000
hypothetical investment in the Fund and the RI2500. The "x" axis reflects
computation periods from 02/28/97 to 10/31/99. The "y" axis is measured in
increments of $1,000 ranging from $9,000 to $14,000. The right margin reflects
the ending value of the $10,000 hypothetical investment in the Fund, as compared
to the RI2500. The ending values were $11,310 and $13,072, respectively.
Average Annual Total Returns
For the Period Ended October 31, 1999*
Old Westbury Growth Opportunity Fund
------------------------------------
One Year............................................................... 6.40%
Since Inception (February 28, 1997).................................... 4.72%
Russell 2500 Index
------------------
One Year............................................................... 18.00%
February 28, 1997 to October 31, 1999.................................. 10.57%
The chart above illustrates the total value of a $10,000 investment from
inception with dividends and capital gains reinvested. The Russell 2500 Index
also includes the reinvestment of dividends but does not include fees and
expenses associated with an investment in the Portfolio. This index is
unmanaged.
*Past performance is no guarantee of future results. Investment return and
principal value will fluctuate, so that an investor's shares, when redeemed,
may be worth more or less than their original cost.
OLD WESTBURY INTERNATIONAL FUND
INVESTMENT ADVISOR'S REPORT
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Performance
International markets continued to perform strongly in the second half of the
fiscal year*. During the second half of the reporting period, Old Westbury
International Fund (the "International Fund") rose 7.27%** compared to the rise
in the Morgan Stanley Capital International: Europe, Australia and Far East
("MSCI EAFE") index of 6.7%+. In the year as a whole, the International Fund
rose 28.82%** compared to the rise in the MSCI EAFE index of 23.03%+. The
International Fund benefited during the second half of the reporting period from
the heavy position in the Japanese market and successful stock selection in
Japan and Europe.
Portfolio Composition
The International Fund continued to increase its holdings in Japan in the
early part of the reporting period under review and shifted the exposure away
from Yen sensitive technology companies towards beneficiaries of domestic
recovery. The International Fund continues to hold substantial positions in the
telecommunications and service sectors in Japan, where we see excellent growth
prospects.
Following a strong rise in the Japanese market and the Yen in the reporting
period, the International Fund has recently shifted some money out of Japan and
into Continental Europe, but retains a strong weighting in Japan. The economic
outlook is brightening in the Eurozone, and both the Euro and the markets should
benefit. We favor financials and growth stocks in Europe. These have been badly
hit by the recent rise in bond yields and should benefit from a flattening of
the yield curve and continuing corporate
* Foreign investing involves special risks including currency risk, increased
volatility of foreign securities, and differences in auditing and other
financial standards.
** Past performance is no guarantee of future results. Investment return and
principal value will fluctuate so that an investor's shares, when redeemed,
may be worth more or less than their original cost.
+ The Morgan Stanley Capital International Europe, Australia and Far East
Index (EAFE) is a standard unmanaged foreign securities index representing
major non-U.S. stock markets, as monitored by Morgan Stanley Capital
International. EAFE returns are in U.S. dollars. Investments cannot be made
directly in an index.
OLD WESTBURY INTERNATIONAL FUND
INVESTMENT ADVISOR'S REPORT
(Continued)
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activity. We remain underweight in the United Kingdom ("UK"), where a sharp
recovery is likely to feed much more quickly into wages and asset prices.
Interest rates are likely to rise faster and further in the UK than on the
European Continent.
Conclusion
The outlook remains very positive for the major non-US markets. Strong returns
from Japan over the past year were driven by solid confirmation of the three
trends that have been underpinning our optimistic view of the market. We expect
similar trends to begin to provide support for Continental European markets. In
both Japan and Europe recent data provided evidence that these economies are in
the early stages of a cyclical recovery. We expect economic growth in both areas
to gather pace over the next year. Corporate restructuring in both Japan and
Continental Europe is also accelerating and is likely to transform corporate
profitability as well as dampen inflationary pressure. Domestic liquidity flows
look increasingly favorable in both areas. Individuals are beginning to increase
exposure to the equity markets, while governments are acting to increase pension
provision. These trends should continue to generate relatively attractive
returns from these markets.
OLD WESTBURY INTERNATIONAL FUND
INVESTMENT ADVISOR'S REPORT
(Continued)
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The graphic presentation here displayed consists of a line graph. The
corresponding components of the line graph are listed underneath. The Old
Westbury International Fund (the "Fund") is represented by a solid line and the
Morgan Stanley Capital International: Europe, Australia and Far East Index (the
"MSCI EAFE") is represented by a broken line. The line graph is a visual
representation of a comparison of change in value of a $10,000 hypothetical
investment in the Fund and the MSCI EAFE. The "x" axis reflects computation
periods from 10/22/93 to 10/31/99. The "y" axis is measured in increments of
$1,000 ranging from $9,000 to $18,000. The right margin reflects the ending
value of the $10,000 hypothetical investment in the Fund, as compared to the
MSCI EAFE. The ending values were $14,135 and $17,083, respectively.
Average Annual Total Returns
For the Period Ended October 31, 1999*
Old Westbury International Fund
-------------------------------
One Year............................................................... 28.82%
Since Inception (October 22, 1993)..................................... 5.91%
EAFE Index
----------
One Year............................................................... 23.03%
October 22, 1993 to October 31, 1999................................... 9.30%
The chart above illustrates the total value of a $10,000 investment from
inception with dividends and capital gains reinvested. The EAFE Index also
includes the reinvestment of dividends but does not include fees and expenses
associated with an investment in the Portfolio. This index is unmanaged.
*Past performance is no guarantee of future results. Investment return and
principal value will fluctuate, so that an investor's shares, when redeemed,
may be worth more or less than their original cost.
OLD WESTBURY INTERNATIONAL FUND
INVESTMENT OUTLOOK
(Continued)
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JAPAN
The Japanese economy is enjoying a cyclical recovery. The key statistic in the
reporting period under review was the rise in second quarter Gross Domestic
Product ("GDP"), but all the numbers are showing consistent improvement. Second
quarter growth was driven by private consumption and not government spending.
This is important, because, with government deficits ballooning, a recovery in
consumption is vital to sustainable growth in Japan. Restructuring is gathering
pace--the merger of three leading banks announced in August being the most
notable example. The initial driver of this was necessity. Banks have been loath
to provide finance so companies have had to change to survive. Now two other
factors are likely to keep the pressure on. First, the renewed strength of the
Yen, and a dramatic increase in the number of foreign firms entering the market,
should prevent any complacency even as the economy starts to recover. Second,
the government is introducing measures improving disclosure as well as giving
companies more flexibility to restructure their operations.
None of this means that Japan's structural problems have disappeared. It will
be a protracted struggle to improve public finances, to allocate capital more
efficiently and to raise the trend growth rate. But none of these factors rule
out a cyclical upturn and it is much easier to deal with these deep- rooted
problems when the economy is picking up. After such a deep recession the main
risk, we believe, is that investors continue to underestimate the potential for
a robust recovery in the economy and corporate earnings in Japan. Yen strength
may cause concern. But we do not expect a gradual strengthening of the Yen to
derail the economic recovery. Exports account for only 15% of GDP, little more
than in the US. A recovery in domestic demand is much more significant for
output than any Yen--induced loss of export competitiveness. And Yen strength
will ensure a continuation of the ultra loose monetary policy, which should help
to support domestic demand and asset prices. Also, while there may be a hiatus
in government spending before the next supplementary budget feeds through at the
end of the year, we expect the government to continue to provide support. We
continue to be optimistic about the prospects for this market.
PACIFIC EX- JAPAN
We continue to see better prospects in Japan than in the rest of the Pacific
Rim. But one area that we are getting interested in again is
OLD WESTBURY INTERNATIONAL FUND
INVESTMENT OUTLOOK
(Continued)
- -------------------------------------------------------------------------------
Hong Kong. It has had a challenging time adjusting to a collapse in domestic
demand at a time when its exchange rate and interest rates were linked to the
only booming economy in the world--the USA. But what that has done is
transformed inflation expectations and diluted the obsession with property that
was one of Hong Kong's weaknesses. With the Chinese economy also stabilizing and
entry to the World Trade Organization likely to promote further restructuring in
China, Hong Kong is an area we are looking to add to.
EUROPE
In Europe we see evidence of modest but rising growth with subdued inflation,
while restructuring and mergers are transforming the Continent's corporations.
This should be a supportive environment for equity markets.
Growth in Continental Europe was surprisingly weak in the first half of 1999.
The crisis in emerging markets at the end of 1998 proved to be more of a drag on
European exports than expected. This in turn fed through into weaker
intra--European trade causing manufacturing output and confidence to slump and
taking around 1% off the rate of growth in Europe. The result was very subdued
growth, with particularly poor performance in Germany and Italy. More recent
data suggests a reversal of these trends. Order books started to turn in March
and this is now starting to feed through into industrial production. The
recovery in demand is being driven by a sharp increase in export orders assisted
by the weaker Euro. We expect growth to continue to accelerate in the fourth
quarter of 1999 and expect Continental Europe to grow over three percent in 2000
after two percent in 1999.
Many economists and politicians are beginning to hope for more than a cyclical
upswing. What Europe needs is a dose of US style high growth with low inflation
and high productivity to bring down unemployment rates. A number of factors make
this more likely this time. The years of tight monetary and fiscal policy ahead
of January's launch of the Euro have helped to reduce inflationary expectations.
There is spare capacity in Europe and the combination of privatization and
deregulation is driving prices down in large sections of the
economy--telecommunications and electricity prices, for example, are likely to
fall over 15% in the next few years. The single market and unified currency have
been driving companies to cut costs and achieve economies of scale and the total
value of merger
OLD WESTBURY INTERNATIONAL FUND
INVESTMENT OUTLOOK
(Continued)
- -------------------------------------------------------------------------------
and acquisition transactions this year will exceed $1trillion. This process is
being assisted by the enlarged Euro capital market, which is enabling European
companies to raise funds as cheaply and innovatively as their US rivals. It has
already led to an upturn in labor productivity, which is running well above the
levels of the late 1980's in most of the Continent.
Continental European governments are still acting too slowly to free up rigid
labor markets and though all of them are promising to cut taxes, implementation
is likely to take a few years. But the competitive environment is now clear and
governments are aware that they have to offer concessions in order to attract
vital foreign investment as well as keep local companies from switching their
investment focus. Electorates may become more realistic too. Most notable is
Germany--where Mr Schroder's loss of support is reflected in voters shifting to
the right not to the interventionist leftwing and Green parties.
It has been the weakness of the Euro that has dampened returns to US investors
from Continental European markets. In local currency terms, Continental Europe
has outperformed the US in 1999. Political concerns and Continental Europe's
structural rigidities were widely blamed for the weakness of the Euro in the
first half of the year despite the fact that it was in effect just reversing a
six month period of strength in European currencies the previous year. We
believe that the Euro was undermined by an exaggerated cyclical downturn in the
pace of European activity in the first half of 1999, a period when growth was
accelerating in the US. Confirmation that growth in the Continent is now
bouncing back should support the Euro for the rest of the year and into 2000.
Evidence of structural improvements would be an added bonus. We remain
underweight in the UK where economic recovery is likely to be associated with a
faster rise in inflation and where there is less scope for restructuring.
OLD WESTBURY INTERNATIONAL FUND
INVESTMENT OUTLOOK
(Concluded)
- -------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Consolidated Asset Allocation
by Geographic Region
---------------------------------- EAFE
10/31/99 6/30/99 3/31/99 1/31/99 10/31/99
-------- ------- ------- ------- --------
<S> <C> <C> <C> <C> <C>
Asia:
Japan................... 33.23% 27.95% 24.71% 23.85% 28.60%
Hong Kong............... 0.13% 0.13% 0.05% 0.03% 2.20%
Australia............... 0.00% 0.00% 0.00% 0.00% 2.40%
Singapore............... 0.00% 0.00% 0.00% 0.00% 1.00%
New Zealand............. 0.00% 0.00% 0.00% 0.00% 0.20%
------ ------ ------ ------ ------
33.36% 28.08% 24.76% 23.88% 34.40%
------ ------ ------ ------ ------
Europe:
United Kingdom.......... 16.89% 16.81% 19.85% 17.60% 20.20%
Netherlands............. 11.58% 7.05% 9.97% 6.40% 5.40%
Germany................. 10.92% 10.57% 12.50% 10.65% 9.50%
France.................. 8.35% 12.83% 9.46% 10.29% 9.50%
Switzerland............. 3.45% 6.01% 7.07% 5.28% 6.40%
Italy................... 2.43% 2.53% 4.14% 6.45% 3.80%
Spain................... 1.79% 3.62% 2.96% 4.32% 2.70%
Sweden.................. 1.37% 1.64% 0.00% 0.00% 2.30%
Norway.................. 1.34% 0.00% 0.00% 0.00% 0.40%
Ireland................. 0.54% 0.50% 0.87% 2.67% 0.50%
Poland.................. 0.39% 1.14% 1.40% 2.93% 0.00%
Finland................. 0.15% 0.27% 1.17% 0.69% 2.10%
Romania................. 0.13% 0.28% 0.26% 0.38% 0.00%
Other................... 0.00% 0.00% 0.47% 1.61% 2.30%
Portugal................ 0.00% 0.00% 0.00% 0.08% 0.50%
------ ------ ------ ------ ------
59.33% 63.25% 70.12% 69.35% 65.60%
------ ------ ------ ------ ------
Latin America:
Brazil.................. 0.14% 0.25% 0.24% 0.21% 0.00%
------ ------ ------ ------ ------
0.14% 0.25% 0.24% 0.21% 0.00%
------ ------ ------ ------ ------
Total investments....... 92.83% 91.58% 95.12% 93.44% 100.00%
======
Other assets and
liabilities, net *.... 7.17% 8.42% 4.88% 6.56%
------ ------ ------ ------
100.00% 100.00% 100.00% 100.00%
====== ====== ====== ======
</TABLE>
- -----------
* Includes cash and equivalents, pending trades and fund share transactions,
interest and dividends receivable accrued expenses payable.
OLD WESTBURY FIXED INCOME FUND
INVESTMENT ADVISOR'S REPORT
- -------------------------------------------------------------------------------
The total return for the Old Westbury Fixed Income Fund (the "Fixed Income
Fund") for the 12 month reporting period ended October 31, 1999 was (2.74%)*
versus (0.66%)** for the Lehman Brothers Government/ Corporate Bond Total Index.
Since its inception on March 12, 1998, through October 31, 1999, the Fixed
Income Fund's return was 3.80%* versus 3.60% for the Lehman Brothers
Government/Corporate Bond Total Index. We continue to diversify the portfolio
into corporate securities as their yield advantage widened over treasuries,
particularly in the last half of the year.
Looking forward, we believe the Fed's actions to counter the potential for
rising inflation will create a favorable investment environment for bond
investors.
* Past performance is no guarantee of future results. Investment return and
principal value will fluctuate so that an investor's shares, when redeemed,
may be worth more or less than their original cost.
** Lehman Brothers Government/Corporate Bond Total Index is composed of all
bonds that are investment grade--i.e., rated Baa or higher by Moody's or BBB
or higher by Standard & Poor's, if unrated by Moody's. Issues must have at
least one year to maturity. Total return comprises price
appreciation/depreciation and income as a percentage of the original
investment. This index is unmanaged, and investments cannot be made directly
in an index.
OLD WESTBURY FIXED INCOME FUND
INVESTMENT ADVISOR'S REPORT
(Concluded)
- --------------------------------------------------------------------------------
The graphic presentation here displayed consists of a line graph. The
corresponding components of the line graph are listed underneath. The Old
Westbury Fixed Income Fund (the "Fund") is represented by a solid line and the
Lehman Brothers Government/Corporate Bond Total Index (the "LBGCBTI") is
represented by a broken line. The line graph is a visual representation of a
comparison of change in value of a $10,000 hypothetical investment in the Fund
and the LBGCBTI. The "x" axis reflects computation periods from 03/12/98 to
10/31/99. The "y" axis is measured in increments of $1,000 ranging from $9,000
to $12,000. The right margin reflects the ending value of the $10,000
hypothetical investment in the Fund, as compared to the LBGCBTI. The ending
values were $10,630 and $10,600, respectively.
Average Annual Total Returns
For the Period Ended October 31, 1999*
Old Westbury Fixed Income Fund
------------------------------
One Year............................................................ (2.74%)
Since Inception (March 12, 1998).................................... 3.80%
Lehman Brothers Government/Corporate Bond Total Index
-----------------------------------------------------
One Year............................................................ (0.66%)
March 12, 1998 to October 31, 1999.................................. 3.60%
The chart above illustrates the total value of a $10,000 investment from
inception with dividends and capital gains reinvested. The Lehman
Government/Corporate Bond Total Index also includes the reinvestment of
dividends but does not include fees and expenses associated with an investment
in the Portfolio. This index is unmanaged.
*Past performance is no guarantee of future results. Investment return and
principal value will fluctuate, so that an investor's shares, when redeemed,
may be worth more or less than their original cost.
OLD WESTBURY MUNICIPAL BOND FUND
INVESTMENT ADVISOR'S REPORT
- -------------------------------------------------------------------------------
For the 12 month reporting period ended 10/31/99, the Old Westbury Municipal
Bond Fund (the "Municipal Bond Fund") had a total return of (3.33%)*. This
compared to the Lehman Brothers Municipal Bond Index which had a return of
(1.77%)**. We continue to maintain a high quality portfolio with the average
credit quality presently at a Moody's rating of Aa. In addition, the Municipal
Bond Fund has a relatively heavy concentration in bonds maturing between 2010-
2014+. We see this maturity range as offering the greatest future return
potential.
* Past performance is no guarantee of future results. Investment return and
principal value will fluctuate so that an investor's shares, when redeemed,
may be worth more or less than their original cost.
** Lehman Brothers Municipal Bond Index is a broad market performance benchmark
for the tax-exempt bond market. To be included in the Lehman Brothers
Municipal Bond Index, bonds must have a minimum credit rating from Moody's of
at least Baa. They must have an outstanding par value of at least $3 million
and be issued as part of a transaction of at least $50 million. The index
includes both zero coupon bonds and bonds subject to the alternative minimum
tax. This index is unmanaged, and investments cannot be made directly in an
index.
+ Income may be subject to the federal alternative minimum tax and state and
local taxes.
OLD WESTBURY MUNICIPAL BOND FUND
INVESTMENT ADVISOR'S REPORT
(Concluded)
- --------------------------------------------------------------------------------
The graphic presentation here displayed consists of a line graph. The
corresponding components of the line graph are listed underneath. The Old
Westbury Municipal Bond Fund (the "Fund") is represented by a solid line and the
Lehman Brothers Municipal Bond Index (the "LBMBI") is represented by a broken
line. The line graph is a visual representation of a comparison of change in
value of a $10,000 hypothetical investment in the Fund and the LBMBI. The "x"
axis reflects computation periods from 03/06/98 to 10/31/99. The "y" axis is
measured in increments of $500 ranging from $9,500 to $11,000. The right margin
reflects the ending value of the $10,000 hypothetical investment in the Fund, as
compared to the LBMBI. The ending values were $10,266 and $10,285, respectively.
Average Annual Total Returns
For the Period Ended October 31, 1999*
Old Westbury Municipal Bond Fund
--------------------------------
One Year.............................................................. (3.33%)
Since Inception (March 6, 1998)....................................... 1.60%
Lehman Brothers Municipal Bond Index
------------------------------------
One Year.............................................................. (1.77%)
March 6, 1998 to October 31, 1999..................................... 1.70%
The chart above illustrates the total value of a $10,000 investment from
inception with dividends and capital gains reinvested. The Lehman Brothers
Municipal Bond Index also includes the reinvestment of dividends but does not
include fees and expenses associated with an investment in the Portfolio. This
index is unmanaged.
*Past performance is no guarantee of future results. Investment return and
principal value will fluctuate, so that an investor's shares, when redeemed,
may be worth more or less than their original cost.
OLD WESTBURY CORE EQUITIES FUND
PORTFOLIO OF INVESTMENTS
October 31, 1999
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Shares Value
------ ---------------------------------- -----------
<C> <S> <C>
COMMON STOCKS--95.37%
CAPITAL GOODS--14.45%
15,000 Alcoa, Inc. $ 911,250
12,000 Allied Signal, Inc. 683,250
9,500 Atlantic Richfield Co. 884,094
32,055 Conoco, Inc. Cl "B' 869,492
8,500 Emerson Electric Co. 510,531
20,370 General Electric Co. 2,760,135
23,000 KLA-Tencor Corp. 1,821,312
14,000 Linear Technology Corp. 979,125
13,500 Rockwell International Corp. 653,906
53,680 Tyco Intl., Ltd. 2,143,845
-----------
TOTAL 12,216,940
-----------
COMMUNICATION SERVICES--10.10%
51,220 AT&T Corp. Com Lib Med Gr A 2,032,794
27,440 Clear Channel Communications, Inc. 2,205,490
17,000 Corning, Inc. 1,336,625
16,500 Motorola, Inc. 1,605,656
22,000 Nortel Networks Corp. 1,362,625
-----------
TOTAL 8,543,190
-----------
CONSUMER CYCLICAL--17.53%
27,260 Carnival Corp. 1,213,070
24,610 Costco Wholesale Corp. 1,976,491
29,260 Dayton-Hudson Corp. 1,890,927
30,230 Family Dollar Stores Inc. 623,494
30,560 Home Depot Inc. 2,314,920
27,580 Kohl's Corp. 2,065,053
29,840 Omnicom Group Inc. 2,625,920
37,280 Wal-Mart Stores, Inc. 2,113,310
-----------
TOTAL 14,823,185
-----------
CONSUMER STAPLES--15.39%
26,900 Colgate-Palmolive Co. 1,627,450
21,160 CVS Corp. 919,137
36,480 Estee Lauder Cos. Inc. Cl "A' 1,700,880
12,500 Kimberly-Clark Corp. 787,500
</TABLE>
OLD WESTBURY CORE EQUITIES FUND
PORTFOLIO OF INVESTMENTS
October 31, 1999 (Continued)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Shares Value
------ ---------------------------------------- -----------
<C> <S> <C>
COMMON STOCKS--Continued
24,000 Lexmark International Group, Inc. Cl "A' $ 1,884,000
15,000 Mediaone Group, Inc. 1,066,875
15,000 Proctor & Gamble Co. 1,573,125
32,840 Safeway Inc. 1,159,663
23,470 Time Warner, Inc. 1,631,165
26,330 Walgreen Co. 663,187
-----------
TOTAL 13,012,982
-----------
FINANCE--4.59%
24,560 Federal National Mortgage Association 1,739,155
19,380 Morgan Stanley Dean Witter 2,139,068
-----------
TOTAL 3,878,223
-----------
HEALTHCARE--5.42%
23,000 Amgen, Inc. 1,834,250
27,220 Guidant Corp. 1,343,987
40,760 Medtronic Inc. 1,401,125
-----------
TOTAL 4,579,362
-----------
TECHNOLOGY--25.45%
31,000 Adobe Systems, Inc. 2,168,062
23,000 BMC Software, Inc. 1,476,312
28,300 Cisco Systems Inc. 2,094,200
27,340 EMC Corp. 1,995,820
28,700 Intel Corp. 2,222,456
13,500 International Business Machines Corp. 1,326,375
23,460 Lucent Technologies, Inc. 1,507,305
39,360 Microsoft Corp. 3,643,260
15,000 Sun Microsystems, Inc. 1,587,188
24,100 Texas Instruments, Inc 2,162,975
7,500 Yahoo!, Inc. 1,342,969
-----------
TOTAL 21,526,922
-----------
</TABLE>
OLD WESTBURY CORE EQUITIES FUND
PORTFOLIO OF INVESTMENTS
October 31, 1999 (Concluded)
- -------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Shares Value
------ ----------------------------- -----------
<C> <S> <C>
COMMON STOCKS--Continued
UTILITIES--2.44%
51,620 Enron Corp. $ 2,061,574
-----------
TOTAL COMMON STOCKS
(cost $66,879,469) 80,642,378
-----------
SHARES/CONTRACTS--3.61%
21,300 S & P 500 Depository Receipts 2,918,100
88 S & P Put Spr 1233.91-987.14 138,864
-----------
TOTAL OTHER INVESTMENTS
(cost $3,371,200) 3,056,964
-----------
TOTAL INVESTMENTS--98.98%
(cost $70,250,669) 83,699,342
CASH AND OTHER ASSETS NET OF
LIABILITIES--1.02% 866,529
-----------
NET ASSETS--100% $84,565,871
===========
</TABLE>
See Notes to Portfolios of Investments on Page 35.
OLD WESTBURY GROWTH OPPORTUNITY FUND
PORTFOLIO OF INVESTMENTS
October 31, 1999
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Shares Value
------- ------------------------------------------ ------------
<C> <S> <C>
COMMON STOCKS--61.52%
BASIC MATERIALS--2.42%
91,000 OM Group, Inc. $ 3,412,500
55,000 Sigma Aldrich Corp. 1,567,500
------------
TOTAL 4,980,000
------------
CAPITAL GOODS--8.06%
66,000 Alliant Techsystems, Inc. 4,059,000
83,125 Martin Marietta Material Corp. 3,236,680
139,000 (a)Noble Drilling Corp. 3,084,063
42,000 (a)Stone Energy Corp. 2,042,250
47,000 Teleflex, Inc. 1,603,875
76,000 (a)Weatherford International, Inc. 2,574,500
------------
TOTAL 16,600,368
------------
COMMUNICATION SERVICES--2.69%
51,066 Comsat Corp. 954,296
55,000 Global Crossing, Ltd. 1,904,375
75,000 Meredith Corp. 2,676,562
------------
TOTAL 5,535,233
------------
CONSUMER CYCLICAL--6.34%
187,000 BJS Wholesale Club, Inc. 5,761,938
310,000 Casey's General Stores, Inc. 3,991,250
53,196 Dollar Tree Stores 2,317,351
57,000 Gentex Corp. 979,687
------------
TOTAL 13,050,226
------------
CONSUMER STAPLES--10.16%
114,167 Citadel Communications Co. 5,515,693
77,000 Dean Foods Company 3,561,250
115,000 Hormel Foods Corp. 4,959,375
81,000 (a)Univision Communications, Inc., Class A 6,890,063
------------
TOTAL 20,926,381
------------
FINANCE--4.67%
122,533 Comdisco, Inc. 2,473,635
58,000 Nationwide Financial Services 2,196,750
52,975 Old Kent Financial Corp. 2,158,731
</TABLE>
OLD WESTBURY GROWTH OPPORTUNITY FUND
PORTFOLIO OF INVESTMENTS
October 31, 1999 (Continued)
- -------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Shares/
Principal
Amount Value
---------- ------------------------------------------------- ------------
<C> <S> <C>
COMMON STOCKS--Continued
37,036 S & P Midcap 400 Trust $ 2,789,274
------------
TOTAL 9,618,390
------------
HEALTHCARE--5.00%
84,000 Dentsply International, Inc. 1,947,750
61,000 (a)Enzon, Inc. 1,788,062
41,785 (a)Healtheon/WebMD Corp. 1,378,905
217,499 Sybron Intl Corp. 5,179,195
------------
TOTAL 10,293,912
------------
MISCELLANEOUS--3.87%
23,000 G & K Svcs, Inc. 863,937
39,000 Gallagher Arthur J. & Co. 2,018,250
207,000 Viad Corp. 5,084,438
------------
TOTAL 7,966,625
------------
TECHNOLOGY--17.18%
56,000 (a)Advantage Learning Systems, Inc. 1,547,000
37,000 (a)Calico Commerce, Inc. 2,303,250
163,000 CGI Group, Inc., Cl "A' Sub Vtg 3,658,437
148,160 Fiserv, Inc. 4,741,120
87,000 (a)I2 Technologies, Inc. 6,867,562
208,000 J.D. Edwards & Co. 4,979,000
85,797 L3 Communications Holdings 3,619,561
29,000 Micron Technology, Inc. 2,068,063
67,508 (a)Mission Critical Software 3,974,534
56,000 (a)Starmedia Network, Inc. 1,610,000
------------
TOTAL 35,368,527
------------
TRANSPORTATION--1.13%
138,750 Southwest Airlines Co. 2,332,734
------------
TOTAL COMMON STOCKS
(cost $112,051,205) 126,672,396
------------
CONVERTIBLE BONDS--0.97%
$2,677,000 (b)Candescent Technology, 7.00%, 05/01/2003 (cost
$2,677,000) 2,007,750
------------
</TABLE>
OLD WESTBURY GROWTH OPPORTUNITY FUND
PORTFOLIO OF INVESTMENTS
October 31, 1999 (Concluded)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Principal
Amount Value
---------- -------------------------------------------------- ------------
<C> <S> <C>
U.S. GOVERNMENT AGENCIES--31.88%
FEDERAL FARM CREDIT BANKS
("FFC")--2.89%
$6,000,000 FFC 5.17%, 11/17/1999 $ 5,958,800
------------
FEDERAL HOME LOAN MORTGAGE CORP. ("FHLMC")--12.08%
10,000,000 FHLMC 5.20%, 11/16/1999 9,949,541
14,000,000 FHLMC 5.19%, 11/05/1999 13,937,431
1,000,000 FHLMC 5.22%, 11/04/1999 992,750
------------
TOTAL 24,879,722
------------
FEDERAL NATIONAL MORTGAGE ASSOCIATION ("FNMA")--
16.91%
15,000,000 FNMA 5.10%, 11/09/1999 14,928,637
9,000,000 FNMA 5.19%, 11/10/1999 8,954,587
6,000,000 FNMA 5.22%, 12/14/1999 5,946,930
5,000,000 FNMA 5.20%, 11/18/1999 4,983,740
------------
TOTAL 34,813,894
------------
TOTAL U.S. GOVERNMENT AGENCIES
(amortized cost $65,652,416) 65,652,416
------------
TOTAL INVESTMENTS--94.37%
(cost $180,380,621) 194,332,562
CASH AND OTHER ASSETS NET OF LIABILITIES--5.63% 11,586,076
------------
NET ASSETS--100% $205,918,638
============
</TABLE>
See Notes to Portfolios of Investments on Page 35.
OLD WESTBURY INTERNATIONAL FUND
PORTFOLIO OF INVESTMENTS
October 31, 1999
- -------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Shares Value
--------- --------------------------------------------------- ------------
<C> <S> <C>
COMMON AND PREFERRED STOCKS--92.83%
BRAZIL--0.14%
39,248 Bompreco Supermercados GDS (Consumer Goods) $ 313,984
------------
FINLAND--0.15%
2,961 Nokia--Class A (Electronics & Electrical Equipment) 339,810
------------
FRANCE--8.35%
23,105 Alcatel (Electronics & Electrical Equipment) 3,618,773
15,581 AXA UAP (Financial Services & Property) 2,203,703
37,925 Banque National De Paris (Banks) 3,339,958
9,500 Compagnie De Saint-Gobain (Building & Construction) 1,653,242
23,522 France Telecom (Services) 2,278,675
538 Peugeot Citroen PSA (Consumer Goods) 103,556
9,657 Suez Lyonnaise Des Eaux (Utilities) 1,563,434
15,131 Total SA (Energy) 2,050,689
7,119 Usinor SA (Materials) 99,186
25,813 Vivendi ORD (Diversified) 1,961,559
------------
TOTAL FRANCE 18,872,775
------------
GERMANY--10.92%
8,814 Allianz AG--Class D (Financial Services & Property) 2,691,228
62,970 Bayer AG (Diversified) 2,575,553
24,338 Deutsche Bank AG (Banks) 1,746,795
50,216 Deutsche Telekom AG (Services) 2,323,479
40,479 Henkel KG (Diversified) 2,753,712
19,172 Mannesmann (Diversified) 3,022,996
11,643 SAP Aktiengesel ADR (Consumer Goods) 425,697
27,562 Schering AG (Health Care) 3,287,777
30,343 Siemens AG (Capital Goods) 2,736,236
46,817 Veba AG (Diversified) 2,547,899
31,590 Viag AG (Diversified) 583,065
------------
TOTAL GERMANY 24,694,437
------------
HONG KONG--0.13%
2,253,528 Kantone Holdings Ltd. ORD (Financial Services &
Property) 304,617
------------
</TABLE>
OLD WESTBURY INTERNATIONAL FUND
PORTFOLIO OF INVESTMENTS
October 31, 1999 (Continued)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Shares Value
------- ------------------------------------------------------- ------------
<C> <S> <C>
COMMON AND PREFERRED STOCKS--Continued
IRELAND--0.54%
96,592 Allied Irish Banks (Banks) $ 1,212,319
------------
ITALY--2.43%
513,043 ENI (Banks) 3,025,326
171,155 IST San Paulo (IMI) (Banks) 2,260,436
104,048 Tecnost SPA (Services) 202,140
------------
TOTAL ITALY 5,487,902
------------
JAPAN--33.23%
348,172 Bank of Tokyo Mutsubishi Bank (Banks) 5,778,899
132,499 Bridgestone Corp. (Consumer Goods) 3,652,599
91,507 Circle K Japan (Retail) 3,673,992
438,731 Fuji Heavy Industry (Consumer Goods) 3,733,702
109,534 Fujitsu Ltd. ORD (Electronics and Electrical Equipment) 3,303,590
394 Japan Tobacco (Consumer Goods) 4,352,128
509,517 Mitsui Fudosan Co LTD (Financial Services & Property) 3,812,446
497,993 Nippon Express (Transportation) 3,530,101
611,016 Nippon Paper (Capital Goods) 4,753,846
281 Nippon Telephone & Telegraph Co. (Services) 4,318,509
253,632 Nomura Securities LTD (Financial Services & Property) 4,192,687
217 NTT Mobile Communications (Services) 5,773,605
20,242 Secom LTD (Diversified) 2,173,716
19,242 Secom LTD NEW (Diversified) 2,051,544
23,388 Sony Corporation (Electronics & Electrical Equipment) 3,652,760
306,987 Sumitomo Electric Industries (Electronics & Electrical
Equipment) 4,131,100
64,032 Takeda Chemical Industries (Health Care) 3,684,100
28,455 Takefuji Corp (Financial Services & Property) 3,689,775
217,028 Tokyo Electric Power Co. (Electronics & Electrical
Equipment) 4,857,125
------------
TOTAL JAPAN 75,116,224
------------
</TABLE>
OLD WESTBURY INTERNATIONAL FUND
PORTFOLIO OF INVESTMENTS
October 31, 1999 (Continued)
- -------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Shares Value
------- ------------------------------------------------------ ------------
<C> <S> <C>
COMMON AND PREFERRED STOCKS--Continued
NETHERLANDS--11.58%
129,218 ABN Amro Holdings (Banks) $ 3,133,220
35,102 Aegon NV HFL 2.5 (Financial Services & Property) 3,248,688
52,796 Getroniics (Services) 2,639,419
62,355 Heineken (Consumer Goods) 3,188,985
53,044 Koninklijke KPN NV (Services) 2,729,581
15,811 Philips Elect NV (Electronics & Electrical Equipment) 1,625,942
12,706 Royal Dutch Petroleum (Energy) 761,580
22,626 TNT Post Group NV (Transportation) 577,500
51,834 Unilever NV (Consumer Goods) 3,444,167
77,994 Vedior (Services) 1,316,164
37,509 VNU NV (Consumer Goods) 1,271,878
66,644 Wolters Kluwer (Consumer Goods) 2,233,095
------------
TOTAL NETHERLANDS 26,170,219
------------
NORWAY--1.34%
768,533 Den Norske Bank (Banks) 3,025,172
------------
POLAND--0.39%
102,502 Elektrim S.A. ORD (Capital Goods) 887,095
------------
ROMANIA--0.13%
6,768 Societe Generale Romania Fund Ltd. (Mutual Fund) 304,560
------------
SPAIN--1.79%
28,139 Centros Comerciales (Services) 530,350
59,194 Fomento De Construc Y Contra (Building & Construction) 1,489,001
112,100 Groupo Dragados SA (Building & Construction) 1,190,595
49,957 Telefonica S.A. (Services) 827,754
------------
TOTAL SPAIN 4,037,700
------------
SWEDEN--1.37%
58,668 Atlas Copco (Capital Goods) 1,553,503
31,601 Ericsson (Services) 1,318,797
</TABLE>
OLD WESTBURY INTERNATIONAL FUND
PORTFOLIO OF INVESTMENTS
October 31, 1999 (Continued)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Shares Value
--------- ------------------------ ------------
<C> <S> <C>
COMMON AND PREFERRED STOCKS--
Continued
4,300 Icon Medialab
International (Services) $ 229,298
------------
TOTAL SWEDEN 3,101,598
------------
SWITZERLAND--3.45% 681 Novartis CHF20 Reg S.A.
ORD (Health Care) 1,021,231
112 Roche Holdings (Health
Care) 1,348,066
8,125 UBS AG (Banks) 2,370,059
5,385 Zurich Allied AG
(Financial Services &
Property) 3,056,600
------------
TOTAL SWITZERLAND 7,795,956
------------
UNITED KINGDOM--16.89%
435,732 Associated British
Foods, PLC (Consumer
Goods) 2,724,888
300,103 BAA PLC ORD (Services) 2,203,698
513,003 BG PLC (Services) 2,849,545
223,982 BP Amoco PLC (Energy) 2,175,171
300,278 Cable & Wireless PLC
(Services) 3,511,183
121,134 Glaxo Welcome PLC
(Health Care) 3,577,937
409,475 Great Universal Stores
PLC (Consumer Goods) 3,111,212
598,825 Hilton Group ORD
(Services) 1,826,855
230,715 Land Securities ORD
(Financial Services &
Property) 2,883,698
286,139 National Westminster
Bank (Banks) 6,465,827
79,790 Rio Tinto PLC
(Materials) 1,366,028
577,171 Royal Sun Alliance ORD
(Financial Services &
Property) 3,929,754
526,985 Tesco PLC (Retail) 1,568,690
------------
TOTAL UNITED KINGDOM 38,194,486
------------
TOTAL COMMON AND PREFERRED STOCKS
(cost $188,402,042) 209,858,854
------------
</TABLE>
OLD WESTBURY INTERNATIONAL FUND
PORTFOLIO OF INVESTMENTS
October 31, 1999 (Concluded)
- -------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Principal
Amount Value
---------- ----------------------- ------------
<C> <S> <C>
U.S. GOVERNMENT AGENCIES--2.19%
FEDERAL NATIONAL
MORTGAGE ASSOCIATION
("FNMA")--2.19%
$5,000,000 FNMA, 5.15%, 11/23/1999
(cost $4,960,660) $ 4,960,660
------------
TOTAL INVESTMENTS--95.02%
(cost $193,362,702) 214,819,514
CASH AND OTHER ASSETS NET OF
LIABILITIES--4.98% 11,252,837
------------
NET ASSETS--100% $226,072,351
============
</TABLE>
See Notes to Portfolio of Investments on Page 35.
OLD WESTBURY FIXED INCOME FUND
PORTFOLIO OF INVESTMENTS
October 31, 1999
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Principal
Amount Value
---------- ------------------------------------------------- ----------
<C> <S> <C>
BONDS--83.74%
U.S. GOVERNMENT SECURITIES--41.18%
$ 500,000 U.S. Treasury Notes, 5.625%, 02/15/2006 $ 487,734
925,000 U.S. Treasury Notes, 6.50%, 10/15/2006 940,898
1,650,000 U.S. Treasury Notes, 5.875%, 11/15/2005 1,631,953
255,000 U.S. Treasury Notes, 6.25%, 02/28/2002 257,191
500,000 U.S. Treasury Bonds, 6.00%, 02/15/2026 473,984
----------
TOTAL 3,791,760
----------
OTHER BONDS--42.56%
75,000 Aristar, Inc., 6.125%, 12/01/2000 74,560
25,000 Associates Corp. NA, 5.96%, 05/15/2037 25,237
175,000 Associates Corp. NA, 6.58%, 06/28/2002 174,339
20,000 Detroit Edison Co., 7.40%, 01/15/2003 20,247
200,000 DuPont EI De Nemours Co., 8.75%, 02/12/2001 205,087
250,000 General Electric Capital Corp., 6.33%, 09/17/2001 249,377
400,000 Homeside International, Inc., 11.25%, 05/15/2003 446,121
500,000 Illinois Power, 6.75%, 03/15/2005 487,335
130,000 Kaiser Permanent, 9.55%, 07/15/2005 143,371
50,000 Merrill Lynch & Co., 6.375%, 10/01/2001 49,984
80,000 Morgan Guaranty Trust Euro, 6.625%, 06/30/2004 78,740
100,000 New England Power Defeased, 8.00%, 08/01/2022 100,917
25,000 Private Export Funding CP, 9.45%, 12/31/1999 25,140
250,000 Private Export Funding CP, 8.40%, 07/31/2001 259,201
100,000 Private Export Funding CP, 7.30%, 01/31/2002 102,262
25,000 Private Export Funding CP, 6.90%, 01/31/2003 25,375
300,000 Private Export Funding CP, 7.03%, 10/31/2003 305,920
200,000 TCI Communications, Inc., 6.69%, 03/31/2006 201,621
615,000 Tennessee Valley Authority (Put 07/2001), 6.235%,
07/15/2045 612,213
301,952 Wal-Mart Stores, 7.49%, 06/21/2007 311,330
20,000 Xerox Corp., 5.875%, 06/15/2037 20,038
----------
TOTAL 3,918,415
----------
TOTAL BONDS (cost $7,921,559) 7,710,175
----------
</TABLE>
OLD WESTBURY FIXED INCOME FUND
PORTFOLIO OF INVESTMENTS
October 31, 1999 (Concluded)
- -------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Principal
Amount Value
--------- ----------------------------------------------------- ----------
<C> <S> <C>
U.S. GOVERNMENT AGENCIES--6.55%
FEDERAL HOME LOAN BANK
("FHLB")--5.46%
$100,000 FHLB, 7.59%, 03/10/2005 $ 104,983
105,000 FHLB, 5.125%, 09/15/2003 100,390
300,000 FHLB, 6.00%, 08/15/2002 297,422
----------
TOTAL 502,795
----------
FEDERAL NATIONAL MORTGAGE ASSOCIATION ("FNMA")--1.09%
106,000 FNMA, 5.125%, 02/13/2004 100,634
----------
TOTAL U.S. GOVERNMENT AGENCIES
(cost $615,953) 603,429
----------
TOTAL INVESTMENTS--90.29%
(cost $8,537,512) 8,313,604
CASH AND OTHER ASSETS NET OF
LIABILITIES--9.71% 894,061
----------
NET ASSETS--100% $9,207,665
==========
</TABLE>
See Notes to Portfolios of Investments on Page 35.
OLD WESTBURY MUNICIPAL BOND FUND
PORTFOLIO OF INVESTMENTS
October 31, 1999
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Principal
Amount Value
--------- ------------------------------------------------------ -----------
<C> <S> <C>
LONG-TERM MUNICIPALS--84.00%
ALABAMA--1.95%
$400,000 Bessemer Governmental Utility Service Corp., 4.90%,
06/01/2011 $ 379,956
-----------
CONNECTICUT--2.50%
500,000 Connecticut ST UT GO (Series C), 5.25%, 10/15/2013 486,970
-----------
ILLINOIS--12.12%
200,000 Chicago Illinois AMBAC, 6.00%, 01/01/2011 215,128
400,000 Chicago Illinois Board Education GO AMBAC, 6.75%,
12/01/2008 444,696
100,000 Chicago Park District Illinois GO UT Refunding Bonds,
5.10% (Original Issue Yield: 5.200%), 1/1/2011 (AMBAC
INS) 96,770
500,000 Cook County Illinois School District No. 87, 5.30%,
12/01/2014 470,285
500,000 Dupage County Community High School, 4.875%,
12/01/2018 423,975
225,000 Illinois Development Finance Authority Revenue, 5.00%,
01/01/2008 222,759
100,000 Illinois Health Facs Authority, 5.25%, 11/15/2021 90,218
210,000 Kane Co Community Unit School District Number 304 GO
UT Refunding Bonds, 6.10%, 6/1/2006 (FGIC INS) 223,045
200,000 St. Clair County Illinois High School, 4.85%,
10/01/2015 175,502
-----------
TOTAL 2,362,378
-----------
INDIANA--1.97%
400,000 Seymour Indiana Community High School Building Corp.,
5.15%, 07/05/2012 385,192
-----------
KENTUCKY--4.10%
800,000 Jefferson County Kentucky Health Systems Revenue,
10/23/2024 800,000
-----------
</TABLE>
OLD WESTBURY MUNICIPAL BOND FUND
PORTFOLIO OF INVESTMENTS
October 31, 1999 (Continued)
- -------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Principal
Amount Value
--------- ----------------------------------------------------- -----------
<C> <S> <C>
LONG-TERM MUNICIPALS--Continued
MASSACHUSETTS--3.51%
$675,000 Massachusetts State (Series C) GO, 5.00%, 09/01/2004 $ 684,808
-----------
MICHIGAN--6.72%
350,000 Memphis Michigan Community School, 4.95%, 05/01/2013 328,023
100,000 Michigan Municipal Bond Authority Revenue Refunding
Bonds (Series A), 5.00%, 10/1/2000 101,052
350,000 Oakridge Michigan Public Schools, 4.85%, 05/01/2013 325,371
460,000 Parchment School District Michigan Govt, 5.00%,
05/01/2025 399,239
175,000 St. John's Michigan Public Schools, 5.00%, 05/01/2021 154,788
-----------
TOTAL 1,308,473
-----------
NEBRASKA--2.29%
500,000 American Public Energy Agency, 4.375%, 06/01/2010 446,790
-----------
NEW JERSEY--3.63%
500,000 New Jersey Transportation Tr Fund, 4.75%, 06/15/2001 503,535
200,000 New Jersey Transportation Tr Fund, 5.25%, 06/15/2006 203,452
-----------
TOTAL 706,987
-----------
NEW YORK--11.52%
800,000 New York City Municipal Water Finance, 06/15/2013 800,000
20,000 New York City NY Rfd (Series 95D), 6.00% (Original
Issue Yield: 6.200%), 2/15/2020 21,291
800,000 NY ST Energy R&D Auth Poll Contr Rev, 08/01/2028 800,000
500,000 Triborough Bridge & Tunnel, 5.00%, 01/01/2017 446,350
200,000 Triborough Bridge & Tunnel, 5.20%, 01/01/2022 177,380
-----------
TOTAL 2,245,021
-----------
</TABLE>
OLD WESTBURY MUNICIPAL BOND FUND
PORTFOLIO OF INVESTMENTS
October 31, 1999 (Continued)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Principal
Amount Value
--------- ------------------------------------------------------ -----------
<C> <S> <C>
LONG-TERM MUNICIPALS--Continued
OHIO--1.02%
$200,000 Evergreen Ohio Local School District, 5.35%,
12/01/2012 $ 198,138
-----------
OKLAHOMA--2.50%
500,000 Oklahoma City Oklahoma GO, 5.00%, 07/01/2011 486,615
-----------
PENNSYLVANIA--2.84%
500,000 Council Rock Pennsylvania School District, 4.45%,
11/15/2011 450,950
100,000 Montgomery County Pennsylvania GO UT (Series A), 6.10%
(Original Issue Yield: 6.150%), 10/15/2025 102,030
-----------
TOTAL 552,980
-----------
RHODE ISLAND--1.87%
400,000 Rhode Island Clean Water Pro., 4.50%, 10/01/2011 363,404
-----------
SOUTH CAROLINA--0.55%
100,000 Piedmont Municipal Power Agency, SC, Electric Revenue
Refunding Bonds, 6.30% (Original Issue Yield: 6.490%),
1/1/2022 (MBIA INS) 106,856
-----------
TENNESSEE--3.00%
455,000 Franklin Tennessee Spl School District, 5.20%,
06/01/2012 442,701
140,000 Memphis Tennessee San Sewer, 5.75%, 10/01/2014 141,901
-----------
TOTAL 584,602
-----------
TEXAS--5.59%
500,000 Lamar ISD Texas GO Refunding Bonds, 4.90%, 02/15/2016 444,250 125,000
Mission Texas Independent School District GO UT, 4.50%
(Original Issue Yield: 5.450%), 2/15/2018 102,891
</TABLE>
OLD WESTBURY MUNICIPAL BOND FUND
PORTFOLIO OF INVESTMENTS
October 31, 1999 (Continued)
- -------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Principal
Amount Value
--------- ------------------------------------------------------ -----------
<C> <S> <C>
LONG-TERM MUNICIPALS--Continued
$100,000 North Central Texas Health, 5.75%, 06/01/2026 $ 96,565
500,000 Round Rock Texas School, 4.70%, 08/01/2014 445,945
-----------
TOTAL 1,089,651
-----------
UTAH--1.93%
400,000 Intermountain Power Agency, Utah, 5.25%, 07/01/2015 375,572
-----------
WASHINGTON--7.87%
300,000 King County Washington Sewer GO/Rev, 6.25%, 01/01/2035 302,865
300,000 Seattle Washington Muni Light & Power, 5.00%,
07/01/2016 269,232
400,000 Seattle Washington Muni Met, 6.25%, 01/01/2017 426,232
400,000 Washington HI Educational Fac Authority, 5.00%,
04/01/2017 353,968
180,000 Washington State GO DD--14&B, 6.00%, 09/01/2019 180,430
-----------
TOTAL 1,532,727
-----------
WEST VIRGINIA--0.26%
50,000 West Virginia GO FGIC, 5.25%, 06/01/2010 50,078
-----------
WISCONSIN--3.77%
125,000 Milwaukee Wisconsin UT GO Refunding Bonds, 4.80%
(Original Issue Yield: 4.950%), 12/1/2000 126,080
400,000 Waupun Wisconsin School District, 4.85%, 04/01/2014 366,500
240,000 Wisconsin Health Education Fac Authority, 6.125%,
08/15/2022 241,315
-----------
TOTAL 733,895
-----------
PUERTO RICO--2.49%
100,000 Puerto Rico Commonwealth UT GO, 5.75% (Original Issue
Yield: 4.820), 7/1/2012 (MBIA INS) 103,823
250,000 Puerto Rico Electric Power Authority, 4.50%,
07/01/2018 207,725
</TABLE>
OLD WESTBURY MUNICIPAL BOND FUND
PORTFOLIO OF INVESTMENTS
October 31, 1999 (Concluded)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Principal
Amount Value
--------- ----------------------- -----------
<C> <S> <C>
LONG-TERM MUNICIPALS--Continued
$200,000 Puerto Rico Electric
Power Authority, 4.75%,
07/01/2017 $ 173,182
-----------
TOTAL 484,730
-----------
TOTAL INVESTMENTS--84.00%
(cost $17,127,527) 16,365,823
CASH AND OTHER ASSETS NET OF
LIABILITIES--16.00% 3,118,511
-----------
NET ASSETS--100.00% $19,484,334
===========
</TABLE>
See Notes to Portfolio of Investments on Page 35.
OLD WESTBURY FUNDS, INC.
NOTES TO PORTFOLIOS OF INVESTMENTS
October 31, 1999
- -------------------------------------------------------------------------------
(a) Non-income producing security.
(b) Denotes a restricted security which is subject to restrictions on resale
under Federal and International Securities laws. At the end of the period,
these securities amounted to $2,007,750, which represents 1.0% of Growth
Opportunity Fund's net assets.
The following abbreviations are used in these portfolios:
ADR--American Depositary Receipts AMBAC--American Municipal Bond Assurance
Company FGIC--Financial Guaranty Insurance Company GO--General Obligation
GDR--Global Depositary Receipts GTD--Guaranty INS--Insured MBIA--Municipal Bond
Investors Assurance ORD--Ordinary Shares PLC--Public Limited Company
UT--Unlimited Tax
See Notes to Financial Statements.
OLD WESTBURY FUNDS, INC.
STATEMENTS OF ASSETS AND LIABILITIES
October 31, 1999
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Core Growth Fixed Municipal
Equities Opportunity International Income Bond
Fund Fund Fund Fund Fund
----------- ------------ ------------- ---------- -----------
<S> <C> <C> <C> <C> <C>
Assets:
Investments, at market
value...................... $83,699,342 $194,332,562 $214,819,514 $8,313,604 $16,365,823
Cash and equivalents........ 1,479,677 7,726,622 6,202,772 648,580 2,636,374
Accrued income receivable... 25,435 380,224 346,865 160,345 262,531
Receivable for fund shares
sold....................... 132,350 131,425 30,025 -- 88,500
Receivable for investments
sold....................... -- 3,997,793 7,039,725 -- 464,261
Receivable for withholding
taxes--dividends........... -- -- 246,686 -- --
Deferred organization
expense.................... -- 13,415 -- -- --
Prepaid expenses............ -- -- -- 85,136 13,170
----------- ------------ ------------ ---------- -----------
Total assets.............. 85,336,804 206,582,041 228,685,587 9,207,665 19,830,659
----------- ------------ ------------ ---------- -----------
Liabilities:
Operating expenses payable.. 262,994 513,403 532,166 -- --
Payable for fund shares
redeemed................... -- 150,000 -- -- --
Payable for investments
purchased.................. 507,939 -- 2,081,070 -- 346,325
----------- ------------ ------------ ---------- -----------
Total liabilities......... 770,933 663,403 2,613,236 -- 346,325
----------- ------------ ------------ ---------- -----------
Net Assets................... $84,565,871 $205,918,638 $226,072,351 $9,207,665 $19,484,334
=========== ============ ============ ========== ===========
Net Assets consist of:
Paid in capital............. $73,218,469 $215,484,940 $203,769,981 $9,421,141 $20,241,003
Undistributed net investment
income..................... -- 169,925 2,063,106 127,392 220,583
Accumulated net realized
gain/(loss) on investments
and foreign currency
translations............... (2,101,271) (23,688,168) (1,196,912) (116,960) (215,548)
Net unrealized
appreciation/(depreciation)
on investments and foreign
currency translations...... 13,448,673 13,951,941 21,436,176 (223,908) (761,704)
----------- ------------ ------------ ---------- -----------
Net Assets................... $84,565,871 $205,918,638 $226,072,351 $9,207,665 $19,484,334
=========== ============ ============ ========== ===========
Net Asset Value, Maximum
Offering Price and
Redemption Proceeds
Per Share................... $ 12.99 $ 11.31 $ 12.24 $ 10.07 $ 9.92
----------- ------------ ------------ ---------- -----------
Shares of Capital Stock
Outstanding................. 6,512,564 18,200,827 18,474,914 914,729 1,964,331
----------- ------------ ------------ ---------- -----------
Investments, at cost......... $70,250,669 $180,380,621 $193,362,702 $8,537,512 $17,127,527
----------- ------------ ------------ ---------- -----------
</TABLE>
See Notes to Financial Statements.
OLD WESTBURY FUNDS, INC.
STATEMENTS OF OPERATIONS
For the Year Ended October 31, 1999
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Core Growth Fixed Municipal
Equities Opportunity International Income Bond
Fund Fund Fund Fund Fund
----------- ----------- ------------- ---------- ----------
<S> <C> <C> <C> <C> <C>
Investment Income:
Dividends(a) .............. $ 314,304 $ 561,087 $ 2,893,766 $ -- $ --
Interest .................. 183,110 1,835,581 472,533 472,669 702,033
----------- ---------- ----------- ---------- ----------
Total income............... $ 497,414 $2,396,668 $ 3,366,299 $ 472,669 $ 702,033
----------- ---------- ----------- ---------- ----------
Expenses:
Investment advisory ....... 425,799 1,242,474 1,179,724 35,407 69,408
Custody.................... 91,000 238,553 301,488 11,802 23,136
Administration............. 88,449 225,228 212,271 75,000 75,000
Shareholder servicing...... 151,058 400,197 376,690 19,670 38,560
Registration............... 19,925 27,649 11,408 26,444 26,469
Amortization of
organization costs........ -- 5,957 -- -- --
Insurance premiums......... 5,020 5,020 5,020 5,020 5,020
Printing and postage....... 7,000 6,967 14,557 5,000 7,000
Legal...................... 3,836 3,201 18,704 10,028 10,000
Audit...................... 31,000 38,638 34,644 21,000 22,800
Transfer agent............. 24,000 16,144 19,461 24,000 24,000
Directors.................. 14,031 13,970 13,970 13,970 13,970
Miscellaneous.............. 1,000 4,266 6,706 1,000 1,000
----------- ---------- ----------- ---------- ----------
Total expenses............. 862,118 2,228,264 2,194,643 248,341 316,363
Less fees waived and
reimbursed:
Waiver of investment
advisory fee.............. (112,848) -- -- (35,407) (69,408)
Waiver of administration
fee....................... -- (23,618) (40,276) (63,556) (52,636)
Reimbursement of other
operating
expenses.................. -- -- -- (66,657) (32,124)
----------- ---------- ----------- ---------- ----------
Total waivers and
reimbursements............ (112,848) (23,618) (40,276) (165,620) (154,168)
----------- ---------- ----------- ---------- ----------
Net expenses............... 749,270 2,204,646 2,154,367 82,721 162,195
----------- ---------- ----------- ---------- ----------
Net Investment
Income/(Loss)............... (251,856) 192,022 1,211,932 389,948 539,838
----------- ---------- ----------- ---------- ----------
Net Realized and Unrealized
Gain/(Loss):
Net realized gain/(loss) on
investments............... 264,674 (9,617,282) 21,478,494 (116,960) (215,548)
Net realized loss on
foreign currency
transactions.............. -- -- (19,698) -- --
Net change in unrealized
appreciation/(depreciation)
on investments 11,959,630 14,338,185 13,353,433 (477,873) (980,440)
Net change in unrealized
appreciation/(depreciation)
on translations of assets
and liabilities in foreign
currencies and foreign
currency contracts........ -- -- (32,361) -- --
----------- ---------- ----------- ---------- ----------
Net Realized and Unrealized
Gain/(Loss)................. 12,224,304 4,720,903 34,779,868 (594,833) (1,195,988)
----------- ---------- ----------- ---------- ----------
Net Increase/(Decrease) in
Net Assets Resulting from
Operations.................. $11,972,448 $4,912,925 $35,991,800 $(204,885) $(656,150)
=========== ========== =========== ========== ==========
</TABLE>
(a) International Fund dividends are shown net of foreign withholding tax of
$412,139.
See Notes to Financial Statements.
OLD WESTBURY FUNDS, INC.
STATEMENTS OF CHANGES IN NET ASSETS
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Growth
Core Equities Fund Opportunity Fund
------------------------- --------------------------
Year Period Year Year
Ended Ended Ended Ended
October 31, October 31, October 31, October 31,
1999 1998(a) 1999 1998
------------ ----------- ------------ ------------
<S> <C> <C> <C> <C>
From Operations:
Net investment
income/(loss)........ $ (251,856) $ (3,797) $ 192,022 $ (566,036)
Net realized
gain/(loss) on
investments and
foreign
currency transactions. 264,674 (2,365,945) (9,617,282) (13,681,337)
Net change in
unrealized
appreciation/
(depreciation)
on investments and
foreign currency
translations......... 11,959,630 1,489,043 14,338,185 (1,535,666)
------------ ----------- ------------ ------------
Net increase/(decrease)
in net assets from
operations........... 11,972,448 (880,699) 4,912,925 (15,783,039)
------------ ----------- ------------ ------------
Distributions to
Shareholders:
From net investment
income............... (36,366) -- -- --
------------ ----------- ------------ ------------
Net decrease in net
assets
from distributions... (36,366) -- -- --
------------ ----------- ------------ ------------
From Capital Stock
Transactions:
Net proceeds from sale
of capital stock..... 53,578,441 37,724,214 128,272,296 108,442,049
Reinvestment of
dividends............ 23,122 -- -- --
Net cost of capital
stock redeemed....... (14,136,113) (3,679,176) (41,091,497) (30,361,846)
------------ ----------- ------------ ------------
Net increase in net
assets resulting from
capital stock
transactions......... 39,465,450 34,045,038 87,180,799 78,080,203
------------ ----------- ------------ ------------
Net Increase in
Net Assets........... 51,401,532 33,164,339 92,092,724 62,297,164
------------ ----------- ------------ ------------
Net Assets:
Beginning of period.... 33,164,339 -- 113,824,914 51,527,750
------------ ----------- ------------ ------------
End of period.......... $ 84,565,871 $33,164,339 $205,918,638 $113,824,914
============ =========== ============ ============
Undistributed net
investment
income included in
net assets at end
of period............ $ -- $ -- $ 169,925 $ --
============ =========== ============ ============
</TABLE>
(a) For the period March 2, 1998 (commencement of operations) to October 31,
1998.
See Notes to Financial Statements.
OLD WESTBURY FUNDS, INC.
STATEMENTS OF CHANGES IN NET ASSETS
(Continued)
- -------------------------------------------------------------------------------
<TABLE>
<CAPTION>
International Fund Fixed Income Fund
-------------------------- ------------------------
Year Year Year Period
Ended Ended Ended Ended
October 31, October 31, October 31, October 31,
1999 1998 1999 1998(a)
------------ ------------ ----------- -----------
<S> <C> <C> <C> <C>
From Operations:
Net investment
income/(loss).......... $ 1,211,932 $ 1,955,296 $ 389,948 $ 83,426
Net realized gain/(loss)
on investments and
foreign currency
transactions........... 21,458,796 (20,123,751) (116,960) 41,374
Net change in unrealized
appreciation/
(depreciation)
on investments and
foreign currency
translations........... 13,321,072 4,268,221 (477,873) 253,965
------------ ------------ ---------- -----------
Net increase/(decrease)
in net assets from
operations............. 35,991,800 (13,900,234) (204,885) 378,765
------------ ------------ ---------- -----------
Distributions to
Shareholders:
From net investment
income................. (2,809,583) (2,302,398) (346,282) --
From capital gains....... -- (9,209,591) (41,074) --
------------ ------------ ---------- -----------
Net decrease in net
assets
from distributions..... (2,809,583) (11,511,989) (387,356) --
------------ ------------ ---------- -----------
From Capital Stock
Transactions:
Net proceeds from sale of
capital stock.......... 117,263,751 55,256,898 6,379,379 7,429,200
Reinvestment of
dividends.............. 1,478,924 8,611,100 173,982 --
Net cost of capital stock
redeemed............... (49,084,485) (89,017,239) (2,352,113) (2,209,307)
------------ ------------ ---------- -----------
Net increase/(decrease)
in net assets resulting
from capital stock
transactions........... 69,658,190 (25,149,241) 4,201,248 5,219,893
------------ ------------ ---------- -----------
Net Increase/(Decrease)
in Net Assets.......... 102,840,407 (50,561,464) 3,609,007 5,598,658
------------ ------------ ---------- -----------
Net Assets:
Beginning of period...... 123,231,944 173,793,408 5,598,658 --
------------ ------------ ---------- -----------
End of period............ $226,072,351 $123,231,944 $9,207,665 $ 5,598,658
============ ============ ========== ===========
Undistributed net
investment income
included in net assets
at end of period....... $ 2,063,106 $ 817,726 $ 127,392 $ 83,426
============ ============ ========== ===========
</TABLE>
(a) For the period March 12, 1998 (commencement of operations) to October 31,
1998.
See Notes to Financial Statements.
OLD WESTBURY FUNDS, INC.
STATEMENTS OF CHANGES IN NET ASSETS
(Concluded)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Municipal Bond Fund
------------------------
Year Period
Ended Ended
October 31, October 31,
1999 1998(a)
----------- -----------
<S> <C> <C>
From Operations:
Net investment income............................... $ 539,838 $ 131,951
Net realized gain/(loss) on investments and foreign
currency transactions............................. (215,548) 46,806
Net change in unrealized appreciation/(depreciation)
on investments and foreign currency translations.. (980,440) 218,736
----------- -----------
Net increase/(decrease) in net assets from
operations........................................ (656,150) 397,493
----------- -----------
Distributions to Shareholders:
From net investment income.......................... (451,546) --
From capital gains.................................. (46,466) --
----------- -----------
Net decrease in net assets from distributions....... (498,012) --
----------- -----------
From Capital Stock Transactions:
Net proceeds from sale of capital stock............. 11,797,870 11,257,900
Reinvestment of dividends........................... 148,516 --
Net cost of capital stock redeemed.................. (2,358,271) (605,012)
----------- -----------
Net increase in net assets resulting from
capital stock transactions........................ 9,588,115 10,652,888
----------- -----------
Net Increase in Net Assets.......................... 8,433,953 11,050,381
----------- -----------
Net Assets:
Beginning of period................................. 11,050,381 --
----------- -----------
End of period....................................... $19,484,334 $11,050,381
=========== ===========
Undistributed net investment income included in net
assets at end of period........................... $ 220,583 $ 131,951
=========== ===========
</TABLE>
(a) For the period March 6, 1998 (commencement of operations) to October 31,
1998.
See Notes to Financial Statements.
[This Page Intentionally Left Blank]
OLD WESTBURY FUNDS, INC.
FINANCIAL HIGHLIGHTS
October 31, 1999
- -------------------------------------------------------------------------------
(For a share outstanding throughout each period)
<TABLE>
<CAPTION>
Net realized
and
unrealized
Net asset Net gain/(loss) on Distributions Distributions
Period value, investment investments, Total from from net from
ended beginning income/ and foreign investment investment capital
October 31, of period (loss) currencies operations income gains
- ----------- --------- ---------- -------------- ---------- ------------- -------------
<S> <C> <C> <C> <C> <C> <C>
Core Equities Fund
1999 $10.01 (0.03) 3.02 2.99 (0.01) --
1998
(a)(e) $10.00 (0.01) 0.02 0.01 -- --
Growth Opportunity Fund
1999 $10.63 (0.02) 0.70 0.68 -- --
1998 $11.82 (0.07) (1.12) (1.19) -- --
1997
(b)(e) $10.00 (0.06) 1.88 1.82 -- --
International Fund
1999 $ 9.74 0.14 2.61 2.75 (0.25) --
1998 $11.75 0.14 (1.25) (1.11) (0.18) (0.72)
1997 $11.16 0.12 0.62 0.74 (0.15) --
1996 $ 9.80 0.13 1.37 1.50 (0.14) --
1995 $10.81 0.14 (1.07) (0.93) (0.08) --
Fixed Income Fund
1999 $10.93 0.48 (0.75) (0.27) (0.51) (0.08)
1998
(c)(e) $10.00 0.28 0.65 0.93 -- --
Municipal Bond Fund
1999 $10.62 0.43 (0.77) (0.34) (0.32) (0.04)
1998
(d)(e) $10.00 0.21 0.41 0.62 -- --
- ---------------------------------------------------------------------------------------
</TABLE>
* Total return is calculated without a sales charge assuming a purchase of
shares on the first day and a sale on the last day of the period.
** Annualized.
(a) For the period from March 2, 1998 (commencement of operations) to October
31, 1998.
(b) For the period from February 28, 1997 (commencement of operations) to
October 31, 1997.
(c) For the period from March 12, 1998 (commencement of operations) to October
31, 1998.
(d) For the period from March 6, 1998 (commencement of operations) to October
31, 1998.
(e) Per share values calculated using average shares outstanding.
See Notes to Financial Statements.
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Ratios to
Average Net Assets
------------------ Net assets,
Net asset Net end Portfolio
Total value, end Total Net investment of period turnover
distributions of period return* expenses income/loss (000 omitted) rate
- ------------- ---------- ------- -------- ----------- ------------- ---------
<S> <C> <C> <C> <C> <C> <C>
(0.01) $12.99 29.9% 1.23% (0.41%) $ 84,566 116%
-- $10.01 0.1% 1.25%** (0.03%)** $ 33,164 56%
-- $11.31 6.4% 1.38% 0.12% $205,919 102%
-- $10.63 (10.1%) 1.48% (0.57%)** $113,825 140%
-- $11.82 18.2% 1.50%** (0.79%)** $ 51,528 46%
(0.25) $12.24 28.8% 1.43% 0.80% $226,072 160%
(0.90) $ 9.74 (10.2%) 1.49% 1.27%** $123,232 129%
(0.15) $11.75 6.6% 1.50% 0.98% $173,793 58%
(0.14) $11.16 15.5% 1.50% 1.19% $135,794 55%
(0.08) $ 9.80 (8.6%) 1.50% 1.40% $104,194 32%
(0.59) $10.07 (2.7%) 1.05% 4.96% $ 9,208 83%
-- $10.93 9.3% 1.05%** 4.48%** $ 5,599 30%
(0.36) $ 9.92 (3.3%) 1.05% 3.50% $ 19,484 96%
-- $10.62 6.2% 1.05%** 3.40%** $ 11,050 40%
- ---------------------------------------------------------------------------------
</TABLE>
OLD WESTBURY FUNDS, INC.
NOTES TO FINANCIAL STATEMENTS
October 31, 1999
- -------------------------------------------------------------------------------
1. Organization and Significant Accounting Policies. Old Westbury Funds, Inc.
(the "Fund"), a Maryland corporation registered under the Investment Company Act
of 1940 (the "Act") as a diversified, open-end management investment company.
The Fund's Articles of Incorporation permit the Board of Directors ("Directors")
to create an unlimited number of series, each of which is a separate class of
shares. At October 31, 1999, the Fund consisted of five separate investment
portfolios (each portfolio individually referred to as a "Portfolio") which are
presented herein:
Portfolio Name Investment Objective
Old Westbury Core Equities Fund Long-term capital appreciation.
("Core Equities Fund")
Old Westbury Growth Opportunity Fund Capital appreciation.
("Growth Opportunity Fund")
Old Westbury International Fund Long-term growth of capital.
("International Fund")
Old Westbury Fixed Income Fund Total return.
("Fixed Income Fund")
Old Westbury Municipal Bond Fund High level of current income
("Municipal Bond Fund") exempt from federal regular
income tax.
The Fund was incorporated under the laws of the state of Maryland on August
26, 1993 and commenced operations on October 22, 1993.
The following is a summary of the significant accounting policies followed by
the Fund:
A. Cash and Equivalents. Cash and equivalents for the Growth Opportunity Fund,
Core Equities Fund and Fixed Income Fund consist primarily of an investment in
the SEI Government II Money Market Fund. For the International Fund cash and
equivalents consist in part of an investment in the SEI Government II Money
Market Fund. Cash and equivalents for the Municipal Bond Fund consist primarily
of an investment in the SEI Tax Free Money Market Fund. While a money market
fund seeks to maintain a stable net asset value of $1/share, there is no
assurance that it will do so.
B. Valuation of Investments. Securities listed on an exchange are valued,
except as indicated below, at the last sale price reflected at the close of the
regular trading session of the exchange on the business day as of which such
value is being determined. If there has been no sale on such
OLD WESTBURY FUNDS, INC.
NOTES TO FINANCIAL STATEMENTS
October 31, 1999 (Continued)
- -------------------------------------------------------------------------------
day, the securities are valued at the mean of the closing bid and asked prices.
If no bid or asked prices are quoted, then the security is valued at a fair
value determined in accordance with procedures approved by the Board of
Directors. Portfolio securities traded on more than one national securities
exchange are valued at the last sale price on the exchange representing the
principal market for such securities.
Securities traded in the over-the-counter market, including listed securities
whose primary market is believed by Bessemer Trust Company, N.A. ("Bessemer"),
the Fund's investment advisor (the "Advisor"), to be over-the-counter, are
valued at the mean of the last reported bid and asked prices from such sources
as the Board of Directors deems appropriate to reflect their fair value.
Debt instruments having 60 days or less remaining until maturity are valued at
amortized cost. Debt instruments having a greater remaining maturity will be
valued at the bid price obtained from a dealer maintaining an active market in
that security or on the basis of prices obtained from a pricing service approved
as reliable by the Board of Directors. All other investment assets, including
restricted and not readily marketable securities, are valued under procedures
established by and under the general supervision and responsibility of the Board
of Directors designed to reflect in good faith the fair value of such
securities.
C. Foreign Currency Translation. The books and records of the International
Fund are maintained in United States dollars. Foreign currency amounts are
translated into United States dollars on the following basis:
(i) value on investment securities, other assets and liabilities--at the
current rates of exchange.
(ii) purchases and sales of investment securities, income, and expenses--at
the rates of exchange prevailing on the respective dates of such transactions.
Although the net assets of the Portfolio are presented at the foreign exchange
rates and values at the close of the period, the Portfolio does not isolate that
portion of the results of operations arising as a result of changes in the
foreign exchange rates from the fluctuations arising from changes in the value
of the securities held at the end of the period. Similarly, the Portfolio does
not isolate the effect of changes in foreign exchange rates from the
fluctuations arising from changes in the value of portfolio securities sold
during the period.
OLD WESTBURY FUNDS, INC.
NOTES TO FINANCIAL STATEMENTS
October 31, 1999 (Continued)
- -------------------------------------------------------------------------------
Foreign security and currency transactions may involve certain considerations
and risks not typically associated with those of U.S. companies as a result of,
among other factors, the level of governmental supervision and regulation of
foreign securities markets and the possibility of political and economic
instability.
D. Forward Foreign Currency Contracts. The International Fund may enter into
forward foreign currency contracts in order to hedge its exposure to changes in
foreign currency exchange rates on its foreign portfolio holdings. A forward
foreign currency contract is a commitment to purchase or sell a foreign currency
at a future date at a negotiated forward rate. Risks may arise upon entering
into these contracts from the potential inability of the counterparties to meet
the terms of their contracts. There were no forward foreign currency contracts
open at October 31, 1999.
E. Security Transactions and Related Investment Income. Security transactions
are accounted for on the trade date. Realized gains and losses on security
transactions are determined on the identified cost method. Dividend income and
other distributions from portfolio securities are recorded on the ex-dividend
date except that, if the ex-dividend date has passed, certain dividends from
foreign securities are recorded as soon as the Fund is informed of the
ex-dividend date. Dividend income is recorded net of foreign taxes withheld
where recovery of such taxes is not assured. Interest income, including
amortization of premiums and discounts, is accrued daily.
F. Deferred Organization Expenses. Expenses incurred by each Portfolio in
connection with its organization and the initial public offering of the
Portfolio's shares are being amortized on a straight-line basis over a five-year
period.
G. Federal Taxes. It is the policy of the Fund to comply with the requirements
of the Internal Revenue Code (the "Code") applicable to regulated investment
companies and to distribute all of its taxable income to its shareholders.
Accordingly, no federal income or excise tax provision is required.
OLD WESTBURY FUNDS, INC.
NOTES TO FINANCIAL STATEMENTS
October 31, 1999 (Continued)
- -------------------------------------------------------------------------------
At October 31, 1999, each Portfolio had the following capital loss
carryforwards for federal income tax purposes, which will expire in the
following years:
<TABLE>
<CAPTION>
Portfolio Name 2005 2006 2007 Total
- ---------------------------------------- ------- ---------- --------- ----------
<S> <C> <C> <C> <C>
Core Equities Fund...................... 1,758,944 1,758,944
Growth Opportunity Fund................. 366,810 12,180,857 9,522,117 22,069,784
International Fund...................... 891,732 891,732
Fixed Income Fund....................... 116,960 116,960
Municipal Bond Fund..................... 215,548 215,548
</TABLE>
The capital loss carryforward will reduce each Portfolio's taxable income
arising from future net realized gains on investments, if any, to extent
permitted by the Code, and thus, will reduce the amount of distributions to
shareholders which would otherwise be necessary to relieve each Portfolio of any
liability for federal tax.
H. Distributions to Shareholders. The treatment for financial statement
purposes of distributions made during the year from net investment income or net
realized gains may differ from their ultimate treatment for federal income tax
purposes. These differences are caused primarily by: differences in the timing
of the recognition of certain components of income, expense, and capital gain;
and the recharacterization of foreign exchange gains or losses to either
ordinary income or realized capital gain for federal tax purposes. Where such
differences are permanent in nature, they are reclassified in the components of
net assets based on their characterization for federal income tax purposes. Any
such reclassifications will have no effect on net assets, results of operations
or net asset value per share of the Portfolio.
I. Restricted Securities. Restricted securities are securities that may only
be resold upon registration under federal securities laws or in transactions
exempt from such registration. In some cases, the issuer of restricted
securities has agreed to register such securities for resale, at the issuer's
expense either upon demand by the Fund or in connection with another registered
offering of the securities. Many restricted securities may be resold in the
secondary market in transactions exempt from registration. Such restricted
securities may be determined to be liquid under criteria established by the
Board of Directors. The Fund will not incur any registration costs upon such
resales. The Fund's restricted securities are valued at the price provided by
dealers in the secondary market or, if no
OLD WESTBURY FUNDS, INC.
NOTES TO FINANCIAL STATEMENTS
October 31, 1999 (Continued)
- -------------------------------------------------------------------------------
market prices are available, at the fair value as determined in accordance with
procedures approved by the Board of Directors.
Additional information on the restricted security held in Growth Opportunity
Fund at October 31, 1999 is as follows:
Security Acquisition Date Acquisition Cost
-------- ---------------- ------------------
Candescent Technology 4/17/1998 $2,677,000
J. Estimates. The preparation of financial statements in conformity with
generally accepted accounting principles requires management to make estimates
and assumptions that may affect the reported amounts in the financial
statements. Actual results could differ from these estimates.
2. Transactions with Affiliates.
A. Investment Advisory Fees. Pursuant to an advisory contract, the Fund has
retained Bessemer to make investment decisions. The investment advisory fee paid
to the advisor is computed daily and paid monthly in accordance with the
following schedule:
Core Equities Fund--0.70% of the first $100 million of the Portfolio's average
net assets, 0.65% of the second $100 million of such assets and 0.60% of such
assets exceeding $200 million.
Growth Opportunity Fund and International Fund--0.80% of the first $100
million of the Portfolio's average net assets, 0.75% of the second $100
million of such assets and 0.70% of such assets exceeding $200 million.
Fixed Income Fund and Municipal Bond Fund--0.45% of the first $100 million of
the Portfolio's average net assets, 0.40% of the second $100 million of such
assets and 0.35% of such assets exceeding $200 million.
B. Administration Fees. Federated Administrative Services ("FAS") serves as
administrator. Edgewood Services, Inc. serves as distributor and shareholder
servicing agent. FAS provides administrative services necessary for the overall
administration of the Fund including, among other responsibilities, the
negotiation of contracts and fees with, and the monitoring of performance and
billings of, the independent contractors and agents of the Fund, the preparation
and filing of all documents required for compliance by the Fund with applicable
laws and regulations; providing equipment and personnel necessary for
maintaining the organization of the Fund; preparation of certain documents in
connection with meetings of the Board of Directors
OLD WESTBURY FUNDS, INC.
NOTES TO FINANCIAL STATEMENTS
October 31, 1999 (Continued)
- -------------------------------------------------------------------------------
and shareholders; the maintenance of books and records of the Fund; and paying
the compensation of the Fund officers and Directors affiliated with FAS. For
providing these services, FAS received from the Fund a fee accrued daily and
paid monthly at an annual rate equal to 0.15% of the total average daily net
assets of the Portfolios within the Fund up to $250 million; 0.125% on the next
$250 million of such assets; 0.10% on the next $250 million of such assets; and
0.075% of such assets over $750 million. The administrative fee received during
any fiscal year shall be at least $75,000 per Portfolio. FAS may choose to
voluntarily waive a portion of its fee at any time.
C. Distribution and Service Plan and Distribution Reimbursement Fees. The
Directors adopted a distribution and service plan (the "Plan") for the Fund
pursuant to Rule 12b-1 of the Act, and pursuant to the Plan, the Fund entered
into a distribution agreement and a shareholder servicing agreement with
Edgewood Services, Inc. and a shareholder servicing agreement with Bessemer.
Under its shareholder servicing agreement, Bessemer received payments from the
Fund to permit it to make payments to broker-dealers for providing shareholder
services. Under its shareholder servicing agreement, Edgewood Services, Inc.
receives payments for the Fund to permit it to make payments to broker-dealers
for providing shareholder services. Under its shareholder servicing agreement,
Bessemer is permitted (i) to receive a payment from the Fund attributable to
Bessemer's clients (and its affiliates) for providing shareholder services to
such clients and (ii) to receive payments to permit it to make payments to other
financial institutions as shareholder servicing agents. The total of shareholder
servicing fees in the aggregate payable to Edgewood Services, Inc. and Bessemer
will not exceed 0.25% per annum of the Fund's average daily net assets.
The distribution agreement with Edgewood Services, Inc. provides for
reimbursement to Edgewood Services, Inc. by the Fund for its distribution,
promotional and advertising costs incurred in connection with the distribution
of the Fund shares in an amount not to exceed 0.10% per annum of the Fund's
average daily net assets.
In addition, the Fund will pay for certain other expenses under the Plan.
These expenses shall not exceed an amount equal to 0.05% per annum of the Fund's
average daily net assets.
D. Directors' Fees. Each Director who is not an "interested person" (as
defined in the Act) of the Fund receives a $5,000 annual retainer plus
OLD WESTBURY FUNDS, INC.
NOTES TO FINANCIAL STATEMENTS
October 31, 1999 (Continued)
- -------------------------------------------------------------------------------
$1,500 per meeting and is reimbursed for out-of-pocket expenses incurred in
connection with committee or board meetings.
Effective May 5, 1999 the directors fees were increased whereby each director
who is not an "interested person" (as defined by the Act) of the Fund receives a
$12,000 annual retainer plus $2,000 per meeting and is reimbursed for
out-of-pocket expenses incurred in connection with committee or board meetings.
E. Custody Fees. The Fund has retained Bessemer to serve as the Fund's
custodian. Bessemer is responsible for maintaining the books and records of the
Fund's securities and cash. For providing these services, Bessemer receives from
each Portfolio a fee accrued and paid monthly at an annual rate equal to 0.15%
(0.20% for the International Fund) of the average daily net assets of the
Portfolio.
3. Capital Stock. The Fund has authorized a total of 20 billion shares of common
stock (par value $0.001 per share) and is permitted to issue 4 billion of the
authorized shares in each of the Portfolios. Transactions in shares of capital
stock were as follows:
<TABLE>
<CAPTION>
Core Equities Fund
--------------------------------------------------
For the For the
Year Ended Period Ended
October 31, 1999 October 31, 1998(a)
------------------------ ------------------------
Shares Dollars Shares Dollars
---------- ------------ ---------- ------------
<S> <C> <C> <C> <C>
Common stock sold........... 4,336,116 $ 53,578,441 3,656,493 $37,724,214
Reinvestment of dividends... 2,092 23,122 -- --
Common stock redeemed....... (1,138,157) (14,136,113) (343,980) (3,679,176)
---------- ------------ ---------- ------------
Net increase................ 3,200,051 $ 39,465,450 3,312,513 $34,045,038
========== ============ ========== ============
<CAPTION>
Growth Opportunity Fund
--------------------------------------------------
For the For the
Year Ended Year Ended
October 31, 1999 October 31, 1998
------------------------ ------------------------
Shares Dollars Shares Dollars
---------- ------------ ---------- ------------
<S> <C> <C> <C> <C>
Common stock sold........... 11,137,731 $128,272,296 8,919,300 $108,442,049
Common stock redeemed....... (3,643,240) (41,091,497) (2,573,859) (30,361,846)
---------- ------------ ---------- ------------
Net increase................ 7,494,491 $ 87,180,799 6,345,441 $ 78,080,203
========== ============ ========== ============
</TABLE>
OLD WESTBURY FUNDS, INC.
NOTES TO FINANCIAL STATEMENTS
October 31, 1999 (Continued)
- -------------------------------------------------------------------------------
<TABLE>
<CAPTION>
International Fund
--------------------------------------------------
For the For the
Year Ended Year Ended
October 31, 1999 October 31, 1998
------------------------ ------------------------
Shares Dollars Shares Dollars
---------- ------------ ---------- ------------
<S> <C> <C> <C> <C>
Common stock sold........... 10,297,038 $117,263,751 5,021,491 $ 55,256,898
Reinvestment of dividends... 148,636 1,478,924 803,274 8,611,100
Common stock redeemed....... (4,620,577) (49,084,485) (7,960,501) (89,017,239)
---------- ------------ ---------- ------------
Net increase/
(Decrease)................ 5,825,097 $ 69,658,190 (2,135,736) $(25,149,241)
========== ============ ========== ============
<CAPTION>
Fixed Income Fund
--------------------------------------------------
For the For the
Year Ended Period Ended
October 31, 1999 October 31, 1998(b)
------------------------ ------------------------
Shares Dollars Shares Dollars
---------- ------------ ---------- ------------
<S> <C> <C> <C> <C>
Common stock sold........... 616,350 $ 6,379,379 713,035 $ 7,429,200
Reinvestment of dividends... 16,797 173,982 -- --
Common stock redeemed....... (230,558) (2,352,113) (200,895) (2,209,307)
---------- ------------ ---------- ------------
Net increase................ 402,589 $ 4,201,248 512,140 $ 5,219,893
========== ============ ========== ============
<CAPTION>
Municipal Fund
--------------------------------------------------
For the For the
Year Ended Period Ended
October 31, 1999 October 31, 1998(c)
------------------------ ------------------------
Shares Dollars Shares Dollars
---------- ------------ ---------- ------------
<S> <C> <C> <C> <C>
Common stock sold........... 1,137,341 $ 11,797,870 1,099,043 $ 11,257,900
Reinvestment of dividends... 14,332 148,516 -- --
Common stock redeemed....... (227,420) (2,358,271) (58,965) (605,012)
---------- ------------ ---------- ------------
Net increase................ 924,253 $ 9,588,115 1,040,078 $ 10,652,888
========== ============ ========== ============
</TABLE>
OLD WESTBURY FUNDS, INC.
NOTES TO FINANCIAL STATEMENTS
October 31, 1999 (Continued)
- -------------------------------------------------------------------------------
(a) For the period March 2, 1998 (commencement of operations) to October 31,
1998.
(b) For the period March 12, 1998 (commencement of operations) to October 31,
1998.
(c) For the period March 6, 1998 (commencement of operations) to October 31,
1998.
4. Purchase and Sales of Securities. For the year ended October 31, 1999
purchases and sales of investment securities other than short-term investments
were as follows:
<TABLE>
<CAPTION>
Fund Purchases Sales
---- ------------ ------------
<S> <C> <C>
Core Equities Fund $106,724,256 $ 67,754,543
Growth Opportunity Fund 181,422,855 157,431,317
International Fund 289,796,969 231,092,182
Fixed Income Fund 9,774,314 6,204,461
Municipal Bond Fund 20,304,608 13,513,290
</TABLE>
At October 31, 1999, the cost of investments for federal income tax purposes was
substantially the same as the cost for financial reporting purposes.
<TABLE>
<CAPTION>
Net Aggregate Aggregate
Unrealized Gross Gross
Appreciation/ Unrealized Unrealized
OLD WESTBURY FUNDS (Depreciation) Appreciation Depreciation
----------------------- -------------- ------------ ------------
<C> <S> <C> <C>
Core Equities Fund $13,448,673 $15,118,870 $1,670,197
Growth Opportunity Fund 13,951,941 20,390,356 6,438,415
International Fund 21,445,337 29,393,534 7,948,197
Fixed Income Fund (223,908) 4,910 228,818
Municipal Bond Fund (761,704) 9,198 770,902
</TABLE>
OLD WESTBURY FUNDS, INC.
NOTES TO FINANCIAL STATEMENTS
October 31, 1999 (Concluded)
- -------------------------------------------------------------------------------
5. Distributions and Foreign taxes Withheld. The following information
summarizes per share distributions to be paid by the Portfolios for the year
ended October 31, 1999 (record date and payable date for the distributions were
December 22, 1999 and December 29, 1999, respectively):
<TABLE>
<CAPTION>
Foreign Taxes
Net Income Paid or Withheld
Fund Per Share Per Share
---- ---------- ----------------
<S> <C> <C>
Core Equities Fund $ -- $ --
International Fund 0.16 0.0189
Fixed Income Fund 0.29 --
Municipal Bond Fund 0.20 --
Growth Opportunities Fund 0.03 --
</TABLE>
The foreign taxes paid or withheld represents taxes incurred by the Portfolio on
dividends received by the Portfolio from foreign sources. Pursuant to IRC
Section 853, an election is expected to be made so that the foreign taxes paid
or withheld are fully available for credit and should be included in taxable
income with an offsetting deduction from gross income or as a credit for taxes
paid to foreign governments. You should consult your tax advisor regarding the
appropriate treatment of foreign taxes paid.
INDEPENDENT AUDITORS' REPORT
- -------------------------------------------------------------------------------
The Board of Directors and Shareholders,
Old Westbury Funds, Inc.:
We have audited the accompanying statements of assets and liabilities, including
the portfolios of investments, of Old Westbury Funds, Inc. (comprising,
respectively, the Core Equities Fund, the Growth Opportunity Fund, the
International Fund, the Fixed Income Fund and the Municipal Bond Fund) as of
October 31, 1999, the related statements of operations for the year then ended
and of changes in net assets and financial highlights for each of the periods
presented. These financial statements and financial highlights are the
responsibility of the Funds' management. Our responsibility is to express an
opinion on these financial statements and financial highlights based on our
audits.
We conducted our audits in accordance with generally accepted auditing
standards. Those standards require that we plan and perform the audit to obtain
reasonable assurance about whether the financial statements and financial
highlights are free of material misstatement. An audit includes examining, on a
test basis, evidence supporting the amounts and disclosures in the financial
statements. Our procedures included confirmation of securities owned at October
31, 1999, by correspondence with the custodians and brokers; where replies were
not received from brokers, we performed other auditing procedures. An audit also
includes assessing the accounting principles used and significant estimates made
by management, as well as evaluating the overall financial statement
presentation. We believe that our audits provide a reasonable basis for our
opinion.
In our opinion, such financial statements and financial highlights present
fairly, in all material respects, the financial positions of the respective
Funds constituting the Old Westbury Funds, Inc. as of October 31, 1999, the
results of their operations, the changes in their net assets, and the financial
highlights for the respective stated periods in conformity with generally
accepted accounting principles.
DELOITTE & TOUCHE LLP
New York, New York
December 17, 1999
[This Page Intentionally Left Blank]
[This Page Intentionally Left Blank]
Investment Advisor: Administrator:
Bessemer Trust Company, N.A. Federated Administrative Services
630 Fifth Avenue Federated Investors Tower
New York, NY 10111 1001 Liberty Avenue
(212) 708-9100 Pittsburgh, PA 15222-3779
Distributor and Shareholder Shareholder Servicing Agent:
Servicing Agent: Bessemer Trust Company, N.A.
Edgewood Services, Inc. 630 Fifth Avenue
5800 Corporate Drive New York, NY 10111
Pittsburgh, PA 15237-5829 (212) 708-9100
Transfer Agent: Independent Auditors:
Bisys Fund Services Ohio, Inc. Deloitte & Touche LLP
3435 Stelzer Road Two World Financial Center
Columbus, OH 43219 New York, NY 10281
Custodian:
Bessemer Trust Company, N.A.
100 Woodbridge Center Drive
Woodbridge, NJ 07095
Cusip 680414307 Cusip 680414208 Cusip 680414109 Cusip 680414406 Cusip 680414505
G01963-06 (12/99)
Mutual funds are not bank deposits or obligations, are not guaranteed by any
bank, and are not insured or guaranteed by the U.S. government, the Federal
Deposit Insurance Corporation, the Federal Reserve Board, or any other
government agency. Investment in mutual funds involves investment risks,
including possible loss of principal.
This report is authorized for distribution to prospective investors only when
preceded or accompanied by the Fund's prospectus which contains facts concerning
the Funds' objectives and policies, management fees, expenses and other
information.
