OLD WESTBURY FUNDS INC
N-30D, 2000-07-06
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[Graphic Representation Ommitted - See Appendix]

Semi-Annual Report

April 30, 2000

[Graphic Representation Ommitted - See Appendix]

 

OLD WESTBURY CORE EQUITIES FUND
INVESTMENT ADVISOR’S REPORT
April 2000
 
        The total return of the Old Westbury Core Equities Fund for the six month reporting period ended April 30, 2000 was 20.02%.* On a total return basis, for the six month period ended April 30, 2000, the Fund was up 20.0% compared to a 7.2% increase in the Standard & Poor’s 500 Index.**
 
        The basic philosophy that underlies our investment strategy is built on the belief that above-average returns can be achieved through the ownership of stocks of companies whose profits are growing 15 to 20% or more a year. At present, the number of corporations meeting this criterion is relatively limited. Why is that? What is restraining earnings?
 
        For one, a slowing economy creates obvious demand problems which are reflected in declining sales growth. This is exacerbated in a tight labor market by a reluctance to layoff employees for fear of being caught shorthanded when a recovery begins. Consequently, margins are squeezed and net income is pressured.
 
        For another, the strength of the dollar, especially against the euro, is shaving a few percentage points off the revenue and profits of many multinational companies. In addition, government intrusion, whether through antitrust (Microsoft), by legislation (health care) or in mergers (Worldcom/Sprint), causes uncertainty in projecting earnings.
 
        An improvement in pricing power would certainly help to alleviate some of these issues and generate better profits, but this is an unlikely prospect. Competition is furious in a worldwide economy where the buyers, particularly through the Internet, have become enfranchised and are now able to access a greater number of sellers eager for their business. The rapid creation of industrywide webexchanges whereby many companies combine their buying power in order to drive vendor prices lower is indicative of the buyer’s power in today’s market.
 
        Even as the economy descends to a lower level of growth, there would seem to be two types of companies that could show reasonably strong earnings progress. One type will be the firms that move quickly both to exploit new areas of sales and to reduce their cost structures. Primarily this requires improving productivity by substituting capital for labor. In today’s world, that almost universally means heavy spending for communication and technology products and services.
OLD WESTBURY CORE EQUITIES FUND
INVESTMENT ADVISOR’S REPORT
April 2000 (Concluded)
 
 
        The beneficiary of this development will be the information technology industry. Currently demand is exceptionally strong in virtually every area associated with building out the Internet and wireless communications with shortages still being felt in some components and subassemblies. However, weakness has developed among consumer-oriented Internet sites and among smaller business-to-business application providers.
`  
        With interest rates rising, the economy slowing, earnings growth decelerating, and valuations being re-examined, market volatility has become extreme. Daily changes of 1% plus are more the norm than the exception. Even the slightest scrap of negative news can result in a blistering decline in the price of a stock. Analysis and discrimination are in little evidence. Within the equity market, rotation among various sectors has turned sharply higher with entire industries gaining and losing favor on a week-to-week basis. Some might call this a trading environment, others would term it schizophrenia.
 
        The two dynamics which are affecting the equity markets are likely to keep stocks trapped within a trading range for some time. Namely, interest rates are keeping a lid on equity prices as higher yields bear down on price/earnings multiples while support underneath the market comes from strong earnings growth.
 
        Constructing a portfolio within this environment has been challenging. The Fund has pared its technology positions through the complete sale of some stocks and the trimming back of others. As of April 30, 2000, technology accounts for approximately 42% of the Fund’s portfolio. Another 46% of the Fund’s assets are invested in other companies outside of the technology industry which we believe continue to grow their profits in line with the Fund’s strategies. The remainder of the Fund’s assets are in a combination of S&P 500 Depositary Receipts (Spiders) and cash.
 
*
Performance quoted represents past performance and is not indicative 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 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 in an index.
OLD WESTBURY CAPITAL OPPORTUNITY FUND
INVESTMENT ADVISOR’S REPORT
April 2000
 
 
        Most notable for the six month reporting period ended April 30, 2000, was the volatility of the Nasdaq Composite Index and certain sectors of the Internet space in particular. During this six month reporting period, the difference between the high and low points of the Nasdaq Composite Index was almost 2,000 points for an Index that ended the period at 3860. From point to point, the Nasdaq Composite Index rose 30%, the S&P 500 Index rose 6.6% and the Russell 2500 Index rose 22%.* During the same six months, the Capital Opportunity Fund lagged its benchmark, the Russell 2500 Index, rising 13%.
 
        During the early part of the reporting period, the Fund underwent a major transformation which achieved two objectives: (1) to substantially increase the technology component of the Fund and (2) to place greater emphasis on growth as opposed to value equities throughout the portfolio. Nine new technology and related stocks were purchased, raising the technology weighting of the Fund (including related issues) to almost 40%, a significant over-weighting versus the Fund’s benchmark. Six additional stocks were added in other sectors, including financial, healthcare, retail and energy, while 12 prior positions, a majority in the more economy-sensitive basic materials and capital goods sectors, were liquidated. Available cash was temporarily invested in Mid-Cap Standard & Poor’s Depositary Receipts (MDY) and cash equivalents.
 
        In the first part of the calendar year, the Fund continued its strategy of adding technology exposure and reducing cyclical exposure. The disparity in performance between the technology sector and the rest of the market became more pronounced during this time to unsustainable levels. Therefore, in April 2000, the Fund underwent a major shift in strategy to reduce the technology component and participate in the broadening of the market. During the month, many of the Internet issues were sold, particularly companies that were heavily dependent on the capital markets to fund growth and companies where profit achievement seemed to be pushed further out into the future. Several stocks in various industries were added including packaged food, retail, diversified manufacturing, financial services, and utilities. While broadly diversified in terms of businesses, all of the new purchases have a common theme: they are growth companies in their industries, yet the Advisor believed that the stocks did not adequately reflect the growth prospects.
 
        Going forward, the Fund will take advantage of the valuation gap found between the technology sector and the broader market by purchasing a range of companies that demonstrate above average earnings growth but sell at a below market valuation metrics. These issues should have a strong growth record and should not require a catalyst tied to the business cycle of a corporate event. In short, the narrowness of the market should provide opportunities to buy out of favor growth stocks at reasonable valuations.
* 
The 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. The Russell 2000 Index measures the performance of the 2,000 smallest companies in the Russell 3000 Index, which represents approximately 10% of the total market capitalization of the Russell 3000 Index. The Nasdaq Composite Index is an unmanaged index that measures all Nasdaq domestic and non-U.S. based common stocks listed on the Nasdaq Stock Market. Investments cannot be made in an index.
OLD WESTBURY INTERNATIONAL FUND
INVESTMENT ADVISOR’S REPORT
April 2000
 
Performance
 
        International markets had a volatile time in the first half of the fiscal year ended April 30, 2000.* Markets were strong in November and December 1999, led by technology shares, but have fallen in 2000. In the six month reporting period under review, the Old Westbury International Fund rose 6.0% modestly underperforming the rise of 6.7% in the MSCI EAFE Index.** The Fund was a few weeks early in reducing the overweighted position in technology stocks in December 1999. This hit performance in that month but positioned the Fund well for 2000.
 
Portfolio Composition
 
        The Fund continued to increase the holdings in continental Europe in the early part of the reporting period focusing particularly on technology and telecommunications companies. Following a strong rise in the European markets, which outperformed Japan by 15% in the three months to the end of February, the Fund shifted some money out of telecommunications and media companies in Europe and back into Japan. Returns from continental European markets should be enhanced by a recovery in the Euro but investors seemed to be missing the solid signs of recovery in Japan as they grew more and more optimistic about Europe.
 
Conclusion
 
        Looking to the future, we remain concerned that pressure on interest rates globally is intensifying. Economic momentum has picked up strongly in Europe, is continuing in Asia and showing little sign of slowing in the U.S. Interest rates have already been raised in the U.S., the Eurozone, i.e., those European Union member states which have adopted the Euro as the common currency, and the United Kingdom, but we expect further rises this year.
 
        Equity markets are likely to find it difficult to make much headway until we see concrete evidence that growth rates are moderating, at least in the U.S. However, the underlying picture for non-U.S. markets continues to look attractive and we consider that they should do relatively well in this environment.
 * 
Foreign investing involves special risks including currency risk, increased volatility of foreign securities, and differences in auditing and other financial standards.
** 
The EAFE Index is a standard unmanaged foreign securities index representing major non-U.S. stock markets as monitored by Morgan Stanely Capital International. EAFE returns are in U.S. dollars. Investments cannot be made in an index.
OLD WESTBURY INTERNATIONAL FUND
INVESTMENT OUTLOOK
April 2000
 
JAPAN
 
        The Japanese economy continues to show solid signs of recovery despite confusing quarterly data. Fourth quarter Gross Domestic Product (“GDP”) data showed a further moderation in economic activity. However, the quarterly GDP series is the only measure of overall economic conditions not showing an improvement. An increasing range of credible indicators are showing the strongest growth since the late 1980’s. Corporate profits are surging driven by cost cutting and restructuring. No wonder business confidence indicators have been rising for the last eighteen months. Inventory levels remain low and companies are ramping up production and planning to increase capital spending.
 
        Consumer confidence is also showing signs of improvement. Unemployment remains at relatively high levels for Japan, but overtime hours and help wanted advertisements are rising sharply. Growth in owner-occupied housing starts, a good indicator of consumer sentiment, has been rising sharply since the second half of 1999. We expect that the economy can grow over 2% in 2000 after growth of 0.3% in 1999. The consensus forecast is for 1% growth in 2000.
 
        We do not expect an early end to supportive fiscal and monetary policies. Prime Minister Mori has indicated that there will be no change from the policies of his predecessor, Mr. Obuchi, and the current strength of the yen is likely to mitigate against the risk of an early end to the zero interest rate policy.
 
        We reduced investments in highly priced technology and telecommunications companies in the Japanese sector of the portfolio in December 1999, and held relatively low positions in these areas through 2000. Following a period of significant underperformance in the first five months of 2000, we are finding that value is starting to reappear in some companies in this area. The Fund continues to favor companies which are restructuring and are beneficiaries of domestic growth and financial services. These sectors have been leading the market in Japan and we expect this to continue. Improving demand is already permitting companies to push through price rises in a range of products from paper to ball bearings. Even land prices appear to be bottoming—in parts of central Tokyo they actually rose in 1999. This is very positive for the overall solvency of the corporate sector as well as for property companies and banks.
 
OLD WESTBURY INTERNATIONAL FUND
INVESTMENT OUTLOOK
(Continued) April 2000
 
        Financial services also look set for significant growth. Individuals had been sellers of mutual funds for nearly a decade before they finally turned buyers in July 1999. Over the next two years starting in April 2000, a total of $1 trillion (U.S. dollars) in high yielding post office deposits will mature. The bulk is likely to be rolled over even at current low interest rates. Some will however be spent and some will find its way into the stock market.
 
REST OF ASIA
 
        Booming trade figures, a recovery in retail sales and signs that deflation is easing suggest that after seven years of declining growth the Chinese economy is picking up speed again. The authorities are also preparing to join the World Trade Organization by accelerating the pace of reform. Hong Kong listed companies with operations in China should be big beneficiaries. We have added to the Fund’s investments in this area.
 
        The Australian market was one of the worst performing markets in 1999 due to the lack of ‘new economy’ companies. Investors are likely to take another look if the current volatility in equity markets persists. They will find a broad range of companies with double digit earnings growth selling on much cheaper multiples than their peers in other markets.
 
EUROPE
 
        After a slow start in 1999, European stock markets took off in the fourth quarter and performed strongly in the period under review. Sector performance was extremely volatile but the Fund’s extensive investments in technology companies were the major contributor to returns.
 
        The global growth picture continues to look good and Europe is playing its part in this. Consensus forecasts have risen to 3.5% in 2000. Not surprisingly, the European Central Bank (“ECB”) has become concerned with growth at this kind of pace and has continued to tighten policy to try and keep growth at a more sustainable pace with little inflation.
 
        In the Euro area, the data remains firm, with the German manufacturer’s survey reaching its highest level since 1991. Core inflation has already started to edge up, partly reflecting the weakness of the Euro. Although the ECB has now raised rates by over 100 basis points from the low, we believe that monetary policy is still too loose. Despite leading indicators suggesting a growth slowdown over the summer months, we expect the ECB to raise rates at least another 75 basis points over the next twelve months. In the United Kingdom the story is slightly different. The extent of the tightening is likely to be limited by the strength of Sterling and sub-target inflation. Nonetheless, another 50 basis points is likely.
 
        By the middle of February 2000, continental Europe had outperformed the U.S. to such an extent that in eight months it had recovered ten years of underperformance. European technology and telecommunications companies had become more expensive than the U.S. Accordingly, the Fund significantly reduced exposure to continental Europe and used this fund-raising exercise to reduce the aggressive overweight in technology, media and telecom companies ahead of what was likely to be a seasonally difficult quarter for a sector that could not afford any disappointments. The Fund remains biased towards growth but reduced the exposure to the higher beta stocks in the sector such as software and services and companies that have continuous funding requirements. By default the relative weightings in the defensive and cyclical sectors have increased.
OLD WESTBURY FIXED INCOME FUND
INVESTMENT ADVISOR’S REPORT
April 2000
 
The total return for the Old Westbury Fixed Income Fund for the six months ended April 30, 2000 was 1.39%* as compared to the Lehman Brothers Government/Corporate Bond Index which was 1.51% for the same time period.**
 
The yield advantage in corporates and government agency securities continued to widen throughout the past year. The Fund increased its exposure to these sectors in short and intermediate maturities, using the proceeds of sales of Treasuries and new additions to the Fund. The government plan to retire the public debt targets long term Treasuries to be purchased in a buy-back program to continue throughout the year. For this reason, and the absence of credit risk that may grow as the Federal Reserve Board follows a restrictive monetary policy, the Fund has concentrated its holdings of longer term maturates in Treasuries.
 * 
Performance quoted represents past performance, and 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 Lehman Brothers Government/Corporate Bond Index is composed of all bonds that are investment grade rated Baa or higher by Moody’s Investor Services, Inc. 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 in an index.
OLD WESTBURY MUNICIPAL BOND FUND
INVESTMENT ADVISOR’S REPORT
April 2000
 
        The Municipal Bond Fund was primarily structured in high quality bonds with an over concentration in the 2010-14 maturity range. High quality bonds have been purchased due to a historically narrow difference in yields between the higher and lower rated bonds. In addition, it is also a belief that the Federal Reserve Board’s interest rate increases will cause lower quality bonds to under-perform highly rated bonds.
 
        The Fund has benefited from exploiting supply/demand imbalances which occur in an unstructured market. Purchasing bonds in over supply and selling other securities in short supply has proven beneficial.
OLD WESTBURY CORE EQUITIES FUND
PORTFOLIO OF INVESTMENTS
April 30, 2000 (Unaudited)
 
Shares
    
     Value
                                   
COMMON STOCKS—92.53%
       CAPITAL GOODS—5.36%
34,870      General Electric Co.      $      5,483,308
22,500      General Motors Cp Cl ‘H’ New      2,167,031
           
       TOTAL      7,650,339
           
       COMMUNICATION EQUIPMENT—7.68%
4,500    (a)Brocade Communications Systems, Inc.      558,000
7,300    (a)Ciena Corp.      902,462
39,960      Lucent Technologies, Inc.      2,485,012
28,000      Motorola, Inc.      3,332,000
33,000      Nortel Networks Corp.      3,696,000
           
       TOTAL      10,973,474
           
       COMPUTER RELATED—13.78%
71,100    (a)Cisco Systems, Inc.      4,929,230
30,840      EMC Corp. Mass.      4,280,978
7,500    (a)Juniper Networks      1,595,156
40,000    (a)Lexmark Intl. Group, Inc. Cl ‘A’      4,720,000
45,000    (a)Sun Microsystems      4,137,188
           
       TOTAL      19,662,552
           
       COMPUTER SOFTWARE/SERVICES—5.60%
26,000      Adobe Systems, Inc.      3,144,375
7,000    (a)Exodus Communications, Inc.      619,062
53,000    (a)Oracle Corp.      4,236,688
           
       TOTAL      8,000,125
           
       CONSUMER CYCLICAL—17.76%
91,720      Costco Wholesale Corp.      4,958,613
80,840      Home Depot Inc.      4,532,093
101,160    (a)Kohl’s Corp.      4,868,325
39,840      Omnicom Group Inc.      3,627,930
53,260      Target Corp.      3,545,118
68,780      Wal-Mart Stores, Inc.      3,808,692
           
       TOTAL      25,340,771
           
 
See Notes to Portfolios of Investments on Page 31.
OLD WESTBURY CORE EQUITIES FUND
PORTFOLIO OF INVESTMENTS
April 30, 2000 (Unaudited) (Continued)
 
Shares
    
     Value
                                   
       CONSUMER STAPLES—7.81%
16,000      American Tower Corp. Cl. ‘A’      $           744,000
94,220    (a)AT&T Corp. Com. Lib. Med. Gr. A      4,705,111
49,400      Colgate-Palmolive Co.      2,821,975
62,480      Estee Lauder Cos. Inc. Cl ‘A’      2,760,835
1,500    (a)Mediaone Group, Inc.      113,438
           
       TOTAL      11,145,359
           
       FINANCE—5.19%
37,060      Federal National Mortgage Association      2,235,181
67,260      Morgan Stanley Dean Witter      5,162,205
           
       TOTAL      7,397,386
           
       HEALTHCARE—6.36%
82,000    (a)Amgen, Inc.      4,592,000
86,260      Medtronic Inc.      4,480,129
           
       TOTAL      9,072,129
           
       SEMICONDUCTORS—11.90%
5,300    (a)Broadcom Corp. Cl. A      913,588
36,700      Intel Corp.      4,654,019
7,000    (a)JDS Uniphase Corp.      725,812
50,500    (a)KLA-Tencor Corp.      3,781,187
45,500      Linear Technology Corp.      2,599,187
26,510      Texas Instruments, Inc      4,307,875
           
       TOTAL      16,981,668
           
       UTILITIES—3.13%
64,120      Enron Corp. Oregon      4,468,363
       MISCELLANEOUS-7.96%
23,000      Corning, Inc.      4,542,500
47,000      S&P Depository Receipts      6,819,406
           
       TOTAL      11,361,906
           
TOTAL COMMON STOCKS (cost $98,269,930)      132,054,072
           
 
See Notes to Portfolios of Investments on Page 31.
OLD WESTBURY CORE EQUITIES FUND
PORTFOLIO OF INVESTMENTS
April 30, 2000 (Unaudited) (Concluded)
 
Principal
Amount
    
     Value
                                     
U.S. GOVERNMENT AGENCIES—9.20%
       FEDERAL HOME LOAN BANKS
(“FHLB”)—8.36%
$12,000,000      FHLB 5.39%, 06/01/2000      $    11,933,132  
       FEDERAL HOME LOAN MORTGAGE
CORP. (“FHLMC”)—.84%
1,200,000      FHLMC 5.91%, 05/16/2000      1,194,904  
           
  
TOTAL U.S. GOVERNMENT AGENCIES
(cost $13,128,036)		      13,128,036  
           
  
TOTAL INVESTMENTS—101.73%
(cost $111,397,966)		      145,182,108  
           
  
CASH AND OTHER ASSETS NET OF
LIABILITIES—(1.73)%		      (2,467,372 )
           
  
NET ASSETS—100%      $142,714,736  
           
  
 
See Notes to Portfolios of Investments on Page 31.
OLD WESTBURY CAPITAL OPPORTUNITY FUND
PORTFOLIO OF INVESTMENTS
April 30, 2000 (Unaudited)
 
Shares
    
     Value
                                    
COMMON STOCKS—69.74%
       BASIC MATERIALS—3.83%
149,000    (a)Grand Prideco, Inc.      $      2,868,250
166,000      OM Group, Inc.      7,636,000
           
       TOTAL      10,504,250
           
       CAPITAL GOODS—.93%
39,809      Illinois Tool Works, Inc.      2,550,264
           
       TOTAL      2,550,264
           
       COMPUTER RELATED—2.32%
198,959      Compaq Computer Corp.      5,807,116
34,411    (a)Perot Systems Corp.      559,179
           
       TOTAL      6,366,295
           
       COMPUTER SOFTWARE/SERVICES—5.45%
27,446    (a)Advantage Learning Systems, Inc.      399,682
88,159      Comdisco, Inc.      2,738,439
137,271    (a)Fiserv, Inc.      6,305,887
140,832    (a)J.D. Edwards & Co.      2,570,184
81,083    (a)Mission Critical Software      2,918,988
           
       TOTAL      14,933,180
           
       CONSUMER CYCLICAL—11.21%
222,675    (a)BJS Wholesale Club, Inc.      7,891,045
93,921    (a)Dollar Tree Stores      5,435,678
107,750    (a)Gentex Corp.      3,474,938
82,000      Lowes Companies Inc.      4,059,000
388,350      Viad Corp.      9,854,381
           
       TOTAL      30,715,042
           
       CONSUMER STAPLES—12.43%
66,143      Bestfoods      3,323,686
210,667    (a)Citadel Communications Co.      8,229,180
134,000      Dean Foods Company      3,283,000
91,045    (a)Hain Food Group, Inc.      2,441,144
384,000      Hormel Foods Corp.      5,856,000
 
See Notes to Portfolios of Investments on Page 31.
OLD WESTBURY CAPITAL OPPORTUNITY FUND
PORTFOLIO OF INVESTMENTS
April 30, 2000 (Unaudited) (Continued)
 
Shares or
Principal
Amount
    
     Value
                                    
100,000    (a)Safeway, Inc.      $      4,412,500
59,582    (a)Univision Communications, Inc. C1 ‘A’      6,509,333
           
       TOTAL      34,054,843
           
       CONVERTIBLES—.76%
$2,677,000    (b)Candescent Tech Cv Bd 7%      2,088,060
           
       TOTAL      2,088,060
           
       ENERGY—8.32%
71,517      Duke Energy Corp.      4,112,228
122,190      Dynegy, Inc.      7,995,808
68,000      GTE Corp.      4,624,000
149,000    (a)Weatherford Intl, Inc. New      6,053,125
           
       TOTAL      22,785,161
           
       FINANCE—10.01%
83,000      AFLAC, Inc      4,051,438
133,800      Gallagher Arthur J. & Co.      4,984,050
30,000      Merill Lynch & Co.      3,058,125
97,875      Nationwide Financial Services      2,728,266
89,850      Old Kent Financial Services      2,706,730
112,000    (a)S & P Midcap 400 Trust      9,898,000
           
       TOTAL      27,426,609
           
       HEALTHCARE—4.39%
386,499    (a)Sybron Intl Corp.      12,029,781
           
       TOTAL      12,029,781
           
 
       OTHER TECHNOLOGY—8.01%
85,000    (a)Agilent Technologies      7,533,125
165,472    (a)L3 Communications Holdings      8,811,384
86,337      Scientific-Atlanta, Inc.      5,617,301
           
       TOTAL      21,961,810
           
 
See Notes to Portfolios of Investments on Page 31.
OLD WESTBURY CAPITAL OPPORTUNITY FUND
PORTFOLIO OF INVESTMENTS
April 30, 2000 (Unaudited) (Concluded)
 
Shares or
Principal
Amount
    
     Value
                                    
       TRANSPORTATION—2.08%
263,200      Southwest Airlines Co.      $      5,708,150
           
       TOTAL      5,708,150
           
TOTAL COMMON STOCKS(162,216,104)      191,123,445
           
U.S. GOVERNMENT AGENCIES—22.10%
       FEDERAL HOME LOAN BANKS
(“FHLB”)—4.72%
$    8,000,000      FHLB 5.39%, 06/01/2000      7,955,422
5,000,000      FHLB 5.84%, 05/10/2000      4,978,100
           
       TOTAL      12,933,522
           
       FEDERAL HOME LOAN MORTGAGE
CORP. (“FHLMC”)—15.57%
    10,000,000      FHLMC 6.02%, 07/06/2000      9,847,827
12,000,000      FHLMC 5.91%, 05/16/2000      11,945,213
5,000,000      FHLMC 5.91%, 05/16/2000      4,978,767
7,000,000      FHLMC 5.95%, 05/12/2000      6,947,938
9,000,000      FHLMC 5.88%, 05/09/2000      8,958,839
           
       TOTAL      42,678,584
           
       FEDERAL NATIONAL MORTGAGE
ASSOCIATION (“FNMA”)—1.81%
5,000,000      FNMA 5.87%, 05/17/2000      4,971,464
           
TOTAL U.S. GOVERNMENT AGENCIES
(cost $60,583,570)		      60,583,570
           
TOTAL INVESTMENTS—91.84%
(cost $222,799,674)(b)		      251,707,015
           
CASH AND OTHER ASSETS NET OF
LIABILITIES—8.16%		      22,353,346
           
NET ASSETS—100%      $  274,060,361
           
 
See Notes to Portfolios of Investments on Page 31.
OLD WESTBURY INTERNATIONAL FUND
PORTFOLIO OF INVESTMENTS
April 30, 2000 (Unaudited)
 
Shares
    
     Value
         
COMMON STOCKS—93.19%
       AUSTRALIA—2.23%
295,318      Broken Hill Properties ORD (Energy)      $  3,179,179
432,113      Westpac Banking Corp. (Banking)      2,757,285
920,448      Woolworth (Consumer Goods)      3,096,254
           
       TOTAL AUSTRALIA      9,032,718
           
       BRAZIL—0.06%
39,248      Bompreco Supermercados GDS (Consumer
Goods)		      245,300
           
       DENMARK—1.23%
67,961      Tele Danmark (Telecommunications)      4,989,733
           
       FINLAND—2.42%
169,925      Nokia—Class A (Technology)      9,777,368
           
       FRANCE—10.63%
93,780      Accor SA (Services)      3,493,314
26,545      Alcatel (Technology)      6,172,459
17,721      AXA UAP (Finance)      2,635,588
17,384      Casino Guicard Perrachon (Consumer Goods)      1,591,544
37,037      Compagnie De Saint-Gobain (Materials)      5,069,345
22,019      Dassault Systemes (Technology)      1,698,648
36,115      Equant (Technology)      2,804,191
14,606      France Telecom (Telecommunications)      2,266,868
88,257      Renault (Consumer Goods)      4,023,968
22,563      Schneider Electric (Capital Equipment)      1,481,374
5,691      S T Microelectronics (Technology)      1,089,272
17,157      Suez Lyonnaise Des Eaux (Services)      2,698,769
29,173      Total SA (Energy)      4,439,895
36,013      Vivendi ORD (Services)      3,572,922
           
       TOTAL FRANCE      43,038,157
           
       GERMANY—4.78%
67,392      Bayerische Vereinsbank (Banking)      4,184,955
29,338      Deutsche Bank AG (Banking)      1,981,029
57,103      Deutsche Telekom AG (Telecommunications)      3,676,198
24,055      Epcos AG (Technology)      3,410,916
 
See Notes to Portfolios of Investments on Page 31.
 
OLD WESTBURY INTERNATIONAL FUND
PORTFOLIO OF INVESTMENTS
April 30, 2000 (Unaudited) (Continued)
 
Shares
    
     Value
10,851      Fortunecity.Com (Technology)      $     87,074
47,320      Infineon Technologies (Technology)      3,236,244
11,358      Infomatec Integrated (Technology)      254,784
1,007      Intershop Communications (Technology)      452,701
550      Siemens AG (Technology)      81,594
17,202      Software AG (Services)      1,992,131
           
       TOTAL GERMANY      19,357,626
           
       HONG KONG—3.57%
6,981,029      China Everbright (Finance)      4,929,472
1,232,055      China Resources Enterprises (Multi-Industry)      1,550,153
1,433,152      Citic Pacific LTD (Multi-Industry)      6,568,690
763,543      Giordano International, LTD (Consumer
Goods)		      1,249,862
2,253,528      Kantone Holdings Ltd. ORD (Technology)      156,234
           
       TOTAL HONG KONG      14,454,411
           
       IRELAND—0.77%
135,592      Allied Irish Banks (Banking)      1,357,600
110,662      CRH PLC (Materials)      1,775,373
           
       TOTAL IRELAND      3,132,973
           
       ITALY—2.06%
425,531      Enel (Energy)      1,814,433
278,055      IST San Paulo (IMI) (Banking)      3,914,834
46,861      Telecom Italia (Telecommunications)      657,550
203,223      Telecom Italia Mobile (Telecommunications)      1,946,723
           
       TOTAL ITALY      8,333,540
           
       JAPAN—28.63%
580,705      Bank of Tokyo Mutsubishi Bank (Banking)      7,484,308
195,841      Banyu Pharmaceutical (Consumer Goods)      4,309,371
266,258      Bridgestone Corp. (Capital Equipment)      5,772,698
141,463      Circle K Japan (Consumer Goods)      5,506,280
616,731      Fuji Heavy Industry (Consumer Goods)      4,704,170
162,664      Fujitsu Ltd. ORD (Technology)      4,601,995
731      Japan Tobacco (Consumer Goods)      5,373,012
 
See Notes to Portfolios of Investments on Page 31.
 
OLD WESTBURY INTERNATIONAL FUND
PORTFOLIO OF INVESTMENTS
April 30, 2000 (Unaudited) (Continued)
 
Shares
    
     Value
459,682      Minibea Co. (Consumer Goods)      $  5,610,024
319,626      Mitsubishi Corp. (Services)      2,777,815
834,878      Mitsui Fudosan Co LTD (Finance)      8,475,370
1,058,762      Nippon Paper (Materials)      6,695,573
289      Nippon Telephone & Telegraph Co.
(Telecommunications)		      3,580,436
351,632      Nomura Securities LTD (Finance)      8,842,816
141      NTT Docomo, Inc. (Telecommunications)      4,706,083
476,426      Sanwa Bank (Banking)      4,598,638
82,927      Secom LTD (Services)      6,946,363
31,080      Sony Corporation (Consumer Goods)      3,566,039
449,386      Sumitomo Electric Industries (Capital
Equipment)		      5,978,795
45,082      Takeda Chemical Industries (Consumer
Goods)		      2,963,508
39,355      Takefuji Corp (Finance)      4,158,909
392,774      Tokyo Electric Power Co. (Energy)      9,260,112
           
       TOTAL JAPAN      115,912,315
           
       NETHERLANDS—6.65%
218,718      ABN Amro Holdings (Banking)      4,517,395
50,995      Ahold (Consumer Goods)      1,192,752
77,936      Akzo Nobel (Materials)      3,200,187
15,466      Koninklijke KPN NV (Telecommunications)      1,563,324
67,824      Libertal (Telecommunications)      1,193,647
133,808      Philips Elect NV (Consumer Goods)      5,987,334
71,745      Royal Dutch Petroleum (Energy)      4,147,785
31,936      Unilever NV (Consumer Goods)      1,454,917
45,146      Versatel Telecom (Telecommunications)      1,815,487
34,525      VNU NV (Services)      1,852,744
           
       TOTAL NETHERLANDS      26,925,572
           
       NORWAY—0.20%
224,880      Den Norske Bank (Banking)      792,080
           
       POLAND—0.12%
38,102      Elektrim (Capital Equipment)      486,300
           
 
See Notes to Portfolios of Investments on Page 31.
 
OLD WESTBURY INTERNATIONAL FUND
PORTFOLIO OF INVESTMENTS
April 30, 2000 (Unaudited) (Continued)
 
Shares
    
     Value
       PORTUGAL—0.28%
101,164      Portugal Telecom S.A. (Telecommunications)      $  1,131,894
           
       ROMANIA—0.09%
6,768      Societe Generale Romania Fund Ltd. (Mutual
Fund)		      365,472
           
       SPAIN—1.56%
159,500      Iberdola SA (Energy)      2,052,216
142,073      Telefonica S.A. (Telecommunications)      3,171,453
137,127      Telepizza SA (Consumer Goods)      1,111,629
           
       TOTAL SPAIN      6,335,298
           
       SWEDEN—1.62%
56,093      Ericsson (Technology)      5,018,874
32,361      Skandia Foeresackrings (Finance)      1,558,542
           
       TOTAL SWEDEN      6,577,416
           
       SWITZERLAND—4.71%
2,019      Nestle Reg. (Consumer Goods)      3,575,950
3,258      Novartis Reg (Consumer Goods)      4,551,785
450      Roche Holdings (Consumer Goods)      4,703,449
1,178      SEZ Holdings (Technology)      1,098,112
12,050      Zurich Allied AG (Finance)      5,146,033
           
       TOTAL SWITZERLAND      19,075,329
           
       UNITED KINGDOM—21.57%
116,670      Arms Holdings PLC (Technology)      1,186,024
13,929      Baltimore Technologies (Technology)      1,397,163
688,113      BG Group ORD (Energy)      4,090,267
573,999      BP Amoco PLC (Energy)      4,939,760
381,516      British Telecom PLC (Telecommunications)      6,815,241
210,773      Cable & Wireless PLC (Telecommunications)      3,477,294
299,860      CGU (Finance)      4,274,554
63,410      Colt Telecom (Telecommunications)      2,685,681
886,332      Corus Group ORD (Materials)      1,183,009
449,237      EMI Group PLC (Consumer Goods)      4,288,750
5,598      Geo Interact Media (Technology)      104,475
277,148      Glaxo Wellcome PLC (Consumer Goods)      8,520,976
165,378      Lloyds TSB Group PLC (Banking)      1,611,872
 
See Notes to Portfolios of Investments on Page 31.
 
OLD WESTBURY INTERNATIONAL FUND
PORTFOLIO OF INVESTMENTS
April 30, 2000 (Unaudited) (Concluded)
 
Shares or
Principal
Amount
    
     Value
73,857      Pearson (Consumer Goods)      $   2,534,391
107,188      Prudential Corp. (Finance)      1,640,273
132,994      Rio Tinto PLC (Materials)      2,053,753
815,004      Rolls Royce (Capital Equipment)      3,007,277
292,793      Royal Bank of Scotland Group (Banking)      4,528,258
982,939      Royal Sun Alliance ORD (Finance)      5,469,014
56,353      Sema Group (Technology)      902,589
676,837      Shell Transport (Energy)      5,488,624
1,244,026      Tesco PLC (Services)      4,228,309
136,223      Unilever PLC (Consumer Goods)      814,491
2,647,459      Vodafone Airtouch ORD
(Telecommunications)		      12,100,622
           
       TOTAL UNITED KINGDOM      87,342,667
           
TOTAL COMMON STOCKS (cost $359,294,439)      377,306,169
           
U.S. GOVERNMENT AGENCIES—5.44%
       FEDERAL NATIONAL MORTGAGE
ASSOCIATION (“FNMA”)—1.01%
$4,100,000      FNMA, 5.87%, 05/17/2000 (cost
$4,076,601)		      4,076,601
           
       FEDERAL HOME LOAN
CORPORATION (“FHLMC”)—4.43%
10,000,000      FHLMC, 5.88%, 05/09/2000 (cost
$9,954,266)		      9,954,266
8,000,000      FHLMC, 5.78%, 05/02/2000 (cost
$7,964,600)		      7,964,600
           
TOTAL U.S. GOVERNMENT AGENCIES
(cost $21,995,467)		      21,995,467
           
TOTAL INVESTMENTS—98.63%
(cost $318,289,906)		      399,301,636
           
CASH AND OTHER ASSETS NET OF
LIABILITIES—1.37%		      5,553,230
           
NET ASSETS—100%      $404,854,866
           
 
See Notes to Portfolios of Investments on Page 31.
 
OLD WESTBURY FIXED INCOME FUND
PORTFOLIO OF INVESTMENTS
April 30, 2000 (Unaudited)
 
Principal
Amount
    
     Value
                                  
BONDS—89.83%
       U.S. GOVERNMENT SECURITIES—39.03%
$      800,000      U.S. Treasury Notes, 5.875%, 11/15/2005      $         775,625
200,000      U.S. Treasury Notes, 6.00%, 08/15/2004      195,844
95,000      U.S. Treasury Notes, 6.25%, 02/28/2002      94,258
1,475,000      U.S. Treasury Notes, 6.50%, 10/15/2006      1,472,004
500,000      U.S. Treasury Notes, 5.625%, 02/15/2006      478,906
500,000      U.S. Treasury Notes, 5.875%, 09/30/2002      491,250
1,900,000      U.S. Treasury Bonds, 6.00%, 02/15/2026      1,846,859
          
       TOTAL      5,354,746
          
       OTHER BONDS—50.80%
75,000      Aristar, Inc., 6.125%, 12/01/2000      74,559
25,000      Associates Corp. NA, 5.96%, 05/15/2037      24,992
175,000      Associates Corp. NA, 6.58%, 06/28/2002      171,676
500,000      Associates Corp. NA, 6.875%, 08/01/2003      493,768
300,000      Bellsouth Telecom, 6.0%, 06/15/2012      291,846
225,000      Conn State GO Taxable, 5.89%, 11/01/2002      217,780
20,000      Detroit Edison Co., 7.40%, 01/15/2003      19,831
150,000      Deutsche Ausgleichsbank, 5.125%,
09/22/2003		      140,393
200,000      DuPont EI De Nemours Co., 8.75%,
02/12/2001		      201,704
250,000      General Electric Capital Corp., 6.33%,
09/17/2001		      246,546
300,000      General Motors Acceptance Corp., 6.75%,
06/10/2002		      295,152
450,000      Homeside Intl. Inc., 11.25%, 05/15/2003      489,725
500,000      Illinois Power, 6.75%, 03/15/2005      476,673
200,000      International Bk. Recon & Develop, 12.375%,
10/15/2002		      223,015
130,000      Kaiser Permanent, 9.55%, 07/15/2005      140,229
300,000      Kansas City Plan Indl Expn, 10.20%,
11/01/2014		      325,116
100,000      Mediaone Group Put, 11/01/2000      99,474
50,000      Merrill Lynch & Co., 6.375%, 10/01/2001      49,327
 
See Notes to Portfolios of Investments on Page 31.
 
OLD WESTBURY FIXED INCOME FUND
PORTFOLIO OF INVESTMENTS
April 30, 2000 (Unaudited) (Continued)
 
Principal
Amount
    
     Value
                                  
$        80,000      Morgan Guaranty Trust Euro, 6.625%,
06/30/2004		      $           76,882
100,000      New England Power Defeased, 8.00%,
08/01/2022		      96,999
250,000      Private Export Funding CP, 8.40%,
07/31/2001		      254,594
100,000      Private Export Funding CP, 7.30%,
01/31/2002		      100,456
25,000      Private Export Funding CP, 6.90%,
01/31/2003		      24,859
300,000      Private Export Funding CP, 7.03%,
10/31/2003		      298,542
250,000      Proctor & Gamble Co., 5.25%, 09/15/2003      233,877
124,478      SLMA Med Term Nt., 9.40%, 05/31/2002      127,419
100,000      State of Maine-Go Tax, 7.15%, 09/01/2002      99,792
915,000      Tennessee Valley Authority (Put 07/2001),
6.23%, 07/15/2045		      907,160
50,000      Texas State GO Taxable, 7.125%, 12/01/2003      49,736
320,000      Texas State GO Taxable, 6.15%, 12/01/2006      300,436
393,452      Wal-Mart Stores, 7.49%, 06/21/2007      396,457
20,000      Xerox Corp., 5.875%, 06/15/2037      19,975
          
       TOTAL      6,968,990
          
TOTAL BONDS
(cost $12,603,342)		      12,323,736
          
U.S. GOVERNMENT AGENCIES—4.31%
       FEDERAL HOME LOAN BANK
(“FHLB”)—3.59%
100,000      FHLB, 7.59%, 03/10/2005      101,549
105,000      FHLB, 5.125%, 09/15/2003      98,651
300,000      FHLB, 6.00%, 08/15/2002      292,875
          
       TOTAL      493,075
          
 
See Notes to Portfolios of Investments on Page 31.
OLD WESTBURY FIXED INCOME FUND
PORTFOLIO OF INVESTMENTS
April 30, 2000 (Unaudited) (Concluded)
 
Principal
Amount
    
     Value
                                  
       FEDERAL NATIONAL MORTGAGE
ASSOCIATION (“FNMA”)—0.72%
$      106,000      FNMA, 5.125%, 02/13/2004      $           98,878
          
TOTAL U.S. GOVERNMENT AGENCIES
(cost $615,599)		      591,953
          
TOTAL INVESTMENTS—94.14%
(cost $13,218,941)		      12,915,689
          
CASH AND OTHER ASSETS NET OF
LIABILITIES—5.86%		      804,443
          
NET ASSETS—100%      $  13,720,132
          
 
See Notes to Portfolios of Investments on Page 31.
OLD WESTBURY MUNICIPAL BOND FUND
PORTFOLIO OF INVESTMENTS
April 30, 2000 (Unaudited)
 
Principal
Amount
    
     Value
                               
LONG-TERM MUNICIPALS—102.46%
       ALABAMA—0.93%
$  190,000      Mobile County Alabama GO, 5.30%,
08/01/2012		      $         186,962
          
       COLORADO—5.02%     
370,000      Longmont Colorado Sales, 5.375%, 11/15/2012      371,617
485,000      Longmont Colorado Sales & Use Tax, 5.625%,
11/15/2017		      485,179
150,000      Lower Colorado River Authority, 5.875%,
05/15/2016		      152,899
          
       TOTAL      1,009,695
          
       CONNECTICUT—2.75%
500,000      Connecticut ST HFA, 5.10%, 05/15/2017      460,555
100,000      East Haven Connecticut MBIA, 4.75%,
10/01/2013		      92,371
          
       TOTAL      552,926
          
       DISTRICT OF COLUMBIA—1.29%
255,000      District of Columbia RFD GO, 5.625%,
06/01/2002		      258,901
          
       FLORIDA—2.89%
190,000      Florida State Board of Education, 5.375%,
01/01/2013		      189,381
205,000      Miami-Dade County Florida Ref., 5.25%,
08/01/2011		      203,608
200,000      Tampa Florida Utility Rev. Series A, 4.75%,
10/01/2011		      188,672
          
       TOTAL      581,661
          
       ILLINOIS—17.36%
400,000      Chicago Illinois Board Education GO AMBAC,
6.75%, 12/01/2008		      441,572
575,000      Chicago Illinois GO. FGIC, 5.875%,
01/01/2019		      575,644
200,000      Cook County Illinois School District No. 87,
5.30%, 12/01/2014		      193,872
 
See Notes to Portfolios of Investments on Page 31.
OLD WESTBURY MUNICIPAL BOND FUND
PORTFOLIO OF INVESTMENTS
April 30, 2000 (Unaudited) (Continued)
 
Principal
Amount
    
     Value
                               
$  500,000      Dupage County Community High School,
4.87%, 12/01/2018		      $         436,785
410,000      Freeport Illinois Sewer System, 5.55%,
12/01/2014		      407,552
225,000      Illinois Development Finance Authority
Revenue, 5.00%, 01/01/2008		      221,890
210,000      Kane Co Community Unit School District
Number 304 GO UT Refunding Bonds, 6.10%,
06/01/2006 (FGIC INS)		      220,846
480,000      Northern Illinois University Rev. Fac., 5.50%,
04/01/2013		      479,534
340,000      Peoria Illinois GO. Ser. A, 5.40%, 01/01/2012      338,229
200,000      St. Clair County Illinois High School, 4.85%,
10/01/2015		      179,468
          
       TOTAL      3,495,392
          
       INDIANA—4.82%
340,000      East Allen Multi School Building, 5.75%,
07/15/2015		      343,743
100,000      East Allen Multi School Building, 5.05%,
07/15/2005		      99,947
285,000      Eagle Union School Building Ref., 4.50%,
07/05/2012		      254,454
170,000      Warsaw High School Building Corp., 5.25%,
01/05/2007		      170,842
100,000      Warsaw High School Building Corp., 5.30%,
01/05/2008		      100,493
          
       TOTAL      969,479
          
       KENTUCKY—2.93%
595,000      Hopkins County Kentucky GO FGIC, 5.625%,
02/01/2016		      590,341
          
       MICHIGAN—10.78%
245,000      Battle Creek Downtown Development, 5.00%,
05/01/2017		      225,236
 
See Notes to Portfolios of Investments on Page 31.
OLD WESTBURY MUNICIPAL BOND FUND
PORTFOLIO OF INVESTMENTS
April 30, 2000 (Unaudited) (Continued)
 
Principal
Amount
    
     Value
                               
$  130,000      Central Montcalm Public School, 5.35%,
05/01/2011		      $         130,091
500,000      Howell Public School Michigan GO, 5.35%,
05/01/2011		      500,350
350,000      Memphis Michigan Community School, 4.95%,
05/01/2013		      328,006
100,000      Michigan Municipal Bond Authority Revenue
Refunding Bonds (Series A), 5.00%,
10/01/2000		      100,255
350,000      Oakridge Michigan Public Schools, 4.85%,
05/01/2013		      324,251
460,000      Parchment School District Michigan GO,
5.00%, 05/01/2025		      405,895
175,000      St. John’s Michigan Public Schools, 5.00%,
05/01/2021		      156,587
          
       TOTAL      2,170,671
          
       MINNESOTA—2.25%
500,000      Rosemount ISD #196 Minnesota, 4.40%,
06/01/2011		      452,235
          
       NEBRASKA—1.75%
400,000      American Public Energy Agency, 4.375%,
06/01/2010		      352,980
          
       NEW JERSEY—3.49%
500,000      New Jersey Transportation Tr Fund, 4.75%,
06/15/2001		      500,675
200,000      New Jersey Transportation Tr Fund, 5.25%,
06/15/2006		      202,070
          
       TOTAL      702,745
          
       NEW YORK—1.49%
20,000      New York City NY Rfd (Series 95D), 6.00%
(Original Issue Yield: 6.200%), 02/15/2020		      20,963
 
See Notes to Portfolios of Investments on Page 31.
OLD WESTBURY MUNICIPAL BOND FUND
PORTFOLIO OF INVESTMENTS
April 30, 2000 (Unaudited) (Continued)
 
Principal
Amount
    
     Value
                               
$  275,000      Onondaga City New York GO, 5.85%,
05/01/2014		      $         279,576
          
       TOTAL      300,539
          
       OHIO—2.68%
550,000      Mansfield Csd. Ohio GO MBIA, 5.35%,
12/01/2014		      539,000
          
       OKLAHOMA—2.43%
500,000      Oklahoma City Oklahoma GO, 5.00%,
07/01/2011		      489,095
          
       PENNSYLVANIA—2.28%
400,000      Council Rock Pennsylvania School District,
4.45%, 11/15/2011		      358,968
100,000      Montgomery County Pennsylvania GO UT
(Series A), 6.10% (Original Issue Yield:
6.150%), 10/15/2025		      100,789
          
       TOTAL      459,757
          
       SOUTH CAROLINA—0.52%
100,000      Piedmont Municipal Power Agency, SC,
Electric Revenue Refunding Bonds, 6.30%
(Original Issue Yield: 6.490%), 01/01/2022
(MBIA INS)		      105,255
          
       TEXAS—18.65%
250,000      Houston Texas GO Series 97A, 5.00%,
03/01/2011		      243,863
500,000      Lamar ISD Texas GO Refunding Bonds,
4.90%, 02/15/2016		      450,550
605,000      Lamar Texas Con ISD GO PSF, 5.25%,
02/15/2017		      573,903
250,000      Montgomery County Texas Mud 47, 6.125%,
10/01/2015		      256,040
210,000      Montgomery County Texas Municipal Utilities,
6.70%, 10/01/2012		      223,967
 
See Notes to Portfolios of Investments on Page 31.
OLD WESTBURY MUNICIPAL BOND FUND
PORTFOLIO OF INVESTMENTS
April 30, 2000 (Unaudited) (Continued)
 
Principal
Amount
    
     Value
                               
$  290,000      New Braunfels Texas GO PSF, 5.75%,
02/01/2014		      $         294,292
500,000      Round Rock Texas School, 4.70%, 08/01/2014      444,950
100,000      Texas Water Development Board Rev., 5.125%,
07/15/2018		      92,359
460,000      Tuloso-Midway Texas ISD GO, 5.50%,
08/15/2022		      435,128
730,000      Ysleta ISD Texas Public Fac Corp., 5.50%,
11/15/2010		      740,256
          
       TOTAL      3,755,308
          
       WASHINGTON—5.55%
300,000      King County Washington Sewer GO/Rev,
6.25%, 01/01/2035		      303,381
300,000      Seattle Washington Municipal Light & Power,
5.00%, 07/01/2016		      270,705
400,000      Washington HI Educational Fac Authority,
5.00%, 04/01/2017		      361,304
180,000      Washington State GO DD-14&B, 6.00%,
09/01/2019		      181,343
          
       TOTAL      1,116,733
          
       WEST VIRGINIA—2.49%
500,000      West Virginia GO FGIC, 5.25%, 06/01/2010      500,755
          
       WISCONSIN—7.41%
125,000      Milwaukee Wisconsin UT GO Refunding
Bonds, 4.80% (Original Issue Yield: 4.950%),
12/01/2000		      125,349
250,000      Oshkosh Wisconsin Corporation, 5.50%,
12/01/2007		      253,943
505,000      Verona Area School District of Wisconsin,
5.50%, 10/01/2012		      507,550
400,000      Waupun Wisconsin School District, 4.85%,
04/01/2014		      364,812
 
See Notes to Portfolios of Investments on Page 31.
OLD WESTBURY MUNICIPAL BOND FUND
PORTFOLIO OF INVESTMENTS
April 30, 2000 (Unaudited) (Concluded)
 
Principal
Amount
    
     Value
                                 
$  240,000      Wisconsin Health Education Fac Authority,
6.125%, 08/15/2022		      $         240,710  
          
  
       TOTAL      1,492,364  
          
  
       PUERTO RICO—2.70%
250,000      Puerto Rico Electric Power Authority, 4.50%,
07/01/2018		      212,728  
330,000      Puerto Rico Electric Power Authority, 4.90%,
07/01/2004		      331,333  
          
  
       TOTAL      544,061  
          
  
TOTAL INVESTMENTS—102.46%
(cost $21,031,407)		      20,626,855  
          
  
CASH AND OTHER ASSETS NET OF
LIABILITIES—(2.46%)		      (494,788 )
          
  
NET ASSETS—100.0%      $  20,132,067  
          
  
 
See Notes to Portfolios of Investments on Page 31.
OLD WESTBURY FUNDS, INC.
NOTES TO PORTFOLIOS OF INVESTMENTS
April 30, 2000
 
 
(a) 
Non-income producing security.
 
(b) 
Denotes the 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 $2,088,060, which represents 0.8% of Capital 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
April 30, 2000 (Unaudited)
 
     Core
Equities
Fund
   Capital
Opportunity
Fund
   International
Fund
   Fixed
Income
Fund
   Municipal
Bond
Fund
Assets:                 
    Investments, at market
        value		    $145,182,108      $251,707,015      $399,301,636    $12,915,689      $20,626,855  
    Cash    7,376,298      4,619,995      4,809,190    419,952      581,655  
    Accrued income
        receivable		    63,713      331,017      1,432,828    228,441      351,442  
    Receivable for
        investments sold		    4,505,519      26,420,531      —    —      —  
    Receivable for fund
        shares sold		    74,000      45,000      137,000    —      —  
    Receivable for
        withholding taxes—
        dividends		    —      —      237,542    —      —  
    Deferred organization
        expense		    —      10,445      —    —      —  
    Prepaid expenses    2,175      5,725      271    156,050      60,375  
    
    
    
 
    
  
                 Total assets    157,203,813      283,139,728      405,918,467    13,720,132      21,620,327  
    
    
    
 
    
  
Liabilities:                 
    Operating expenses
        payable		    357,872      669,136      905,742    —      —  
    Payable for fund shares
        redeemed		    436      200,160      76    —      1,488,260  
    Payable for investments
        purchased		    14,130,769      8,210,071      157,783    —      —  
    
    
    
 
    
  
                 Total liabilities    14,489,077      9,079,367      1,063,601    —      1,488,260  
    
    
    
 
    
  
Net Assets    $142,714,736      $274,060,361      $404,854,866    $13,720,132      $20,132,067  
    
    
    
 
    
  
Net assets consist of:                 
    Paid in capital    $113,995,228      $259,098,895      $372,430,999    $14,018,124      $20,646,016  
    Undistributed net
        investment income		    —      —      —    163,260      244,420  
    Accumulated net realized
        gain/(loss) on
        investments and foreign
        currency translations		    (5,064,634 )    (13,945,875 )    14,482,614    (158,000 )    (353,817 )
    Net unrealized
        appreciation/
        (depreciation) on
        investments and foreign
        currency translations		    33,784,142      28,907,341      17,941,253    (303,252 )    (404,552 )
    
    
    
 
    
  
Net Assets    $142,714,736      $274,060,361      $404,854,866    $13,720,132      $20,132,067  
    
    
    
 
    
  
Net Asset Value,
    Maximum Offering
    Price and Redemption
    Proceeds Per Share		    $             15.59      $             12.76      $             12.81    $             9.92      $           10.01  
    
    
    
 
    
  
Shares of Capital Stock
    Outstanding		    9,156,336      21,477,212      31,595,635    1,382,382      2,010,199  
    
    
    
 
    
  
Investments, at cost    $111,397,966      $222,799,674      $381,289,906    $13,218,941      $21,031,407  
    
    
    
 
    
  
 
See Notes to Financial Statements.
OLD WESTBURY FUNDS, INC.
STATEMENTS OF OPERATIONS
For the Six Months Ended April 30, 2000 (Unaudited)
 
     Core
Equities
Fund
   Capital
Opportunity
Fund
   International
Fund
Investment Income/(Loss):               
    Dividends    $      228,379      $      455,492      $  1,779,334 (a)
    Interest    197,441      1,154,194      707,434  
    
    
    
  
        Total income            425,820          1,609,686          2,486,768  
    
    
    
  
Expenses:               
    Investment advisory    431,459      936,758      1,215,178  
    Custody    91,231      184,709      325,824  
    Administration    88,190      147,767      195,494  
    Shareholder servicing    152,051      307,848      407,280  
    Registration    13,564      15,472      11,927  
    Amortization of organization costs    —       2,970      —   
    Insurance premiums    2,493      2,493      2,503  
    Printing and postage    3,491      3,491      7,480  
    Legal    4,488      4,488      4,488  
    Audit    11,320      28,083      31,339  
    Transfer agent    12,964      12,964      12,964  
    Directors    8,816      8,816      8,816  
    Miscellaneous    997      2,493      2,493  
    
    
    
  
        Total expenses    821,064      1,658,352      2,225,786  
Less fees waived and reimbursed:         
    Waiver of investment advisory fee    (60,809 )    —      —  
    Waiver of administration fee    —      —      —  
    Reimbursement of other operating expenses    —      —      —  
    
    
    
  
        Total waivers and reimbursements    (60,809 )    —      —  
    
    
    
  
        Net expenses    760,255      1,658,352      2,225,786  
    
    
    
  
Net Investment Income/(Loss)    (334,435 )    (48,666 )    260,982  
    
    
    
  
Net Realized and Unrealized Gain/(Loss):               
    Net realized gain/(loss) on investments    (2,963,363 )    9,742,292      15,684,731  
    Net realized loss on foreign currency translations    —      —      (5,205 )
    Net change in unrealized appreciation/depreciation on
          investments		    20,335,469      14,955,401      (3,433,604 )
    Net change in unrealized depreciation on translations
         of assets and liabilities in foreign currencies and
         foreign currency contracts		    —      —      (61,319 )
    
    
    
  
Net Realized and Unrealized Gain    17,372,106      24,697,693      12,184,603  
    
    
    
  
Net Increase in Net Assets Resulting
    from Operations		    $17,037,671      $24,649,027      $12,445,585  
    
    
    
  
(a) International Fund dividends are shown net of foreign withholding tax of $241,707.
 
See Notes to Financial Statements.
OLD WESTBURY FUNDS, INC.
STATEMENTS OF OPERATIONS
For the Six Months Ended April 30, 2000 (Unaudited) (Concluded)
 
     Fixed
Income
Fund
   Municipal
Bond
Fund
Investment Income:      
    Dividends    $           —      $           —  
    Interest    354,558      485,446  
    
    
  
        Total income        354,558          485,446  
    
    
  
Expenses:      
    Investment advisory    23,680      43,366  
    Custody    7,916      14,461  
    Administration    37,295      37,295  
    Shareholder servicing    13,193      24,102  
    Registration    5,458      6,092  
    Amortization of organization costs    —      —  
    Insurance premiums    2,493      2,493  
    Printing and postage    3,491      3,491  
    Legal    4,987      4,987  
    Audit    1,296      2,757  
    Transfer agent    12,964      12,964  
    Directors    8,816      8,816  
    Miscellaneous    991      997  
    
    
  
        Total expenses    122,580      161,821  
Less fees waived and reimbursed:      
    Waiver of investment advisory fee    (23,680 )    (43,366 )
    Waiver of administration fee    —      —  
    Reimbursement of other operating expenses    (43,365 )    (16,928 )
    
    
  
        Total waivers and reimbursements    (67,045 )    (60,294 )
    
    
  
        Net expenses    55,535      101,527  
    
    
  
Net Investment Income    299,023      383,919  
    
    
  
Net Realized and Unrealized Gain/(Loss):      
    Net realized loss on investments    (38,792 )     (152,513 )
    Net realized loss on foreign currency translations    —      —  
    Net change in unrealized appreciation/depreciation on investments    (81,951 )    371,396  
    Net change in unrealized depreciation on translations of assets and
         liabilities in foreign currencies and foreign currency contracts		    —      —  
    
    
  
Net Realized and Unrealized Gain/(Loss)     (120,743 )    218,883  
    
    
  
Net Increase in Net Assets Resulting from Operations    $  178,280      $  602,802  
    
    
  
 
See Notes to Financial Statements.
OLD WESTBURY FUNDS, INC.
STATEMENTS OF CHANGES IN NET ASSETS
 
 
     Core Equities Fund
   Capital
Opportunity Fund
     Six Months
Ended
April 30,
2000
(unaudited)
   Year
Ended
October 31,
1999
   Six Months
Ended
April 30,
2000
(unaudited)
   Year
Ended
October 31,
1999
From Operations:            
    Net investment income/(loss)    $      (334,435 )    $    (251,856 )    $         (48,666 )    $         192,022  
    Net realized gain/(loss) on
        investments		    (2,963,363 )    264,674      9,742,292      (9,617,282 )
    Net change in unrealized
        appreciation/depreciation on
        investments 		   20,335,469      11,959,630      14,955,401      14,338,185  
    
    
    
    
  
    Net increase in net assets from
        operations		    17,037,671      11,972,448      24,649,027      4,912,925  
    
    
    
    
  
Distributions to Shareholders:            
    From net investment income    —      (36,366 )    (541,345 )    —  
    From capital gains    —      —      —      —  
    
    
    
    
  
    Net decrease in net assets from
        distributions		    —      (36,366 )    (541,345 )    —  
    
    
    
    
  
From Capital Stock Transactions:         
    Net proceeds from sale of capital
        stock		    56,928,791      53,578,441      91,918,022      128,272,296  
    Reinvestment of dividends    —      23,122      187,795      —  
    Net cost of capital stock redeemed    (15,817,597 )     (14,136,113 )    (48,071,776 )    (41,091,497 )
    
    
    
    
  
    Net increase in net assets resulting
        from capital stock transactions		    41,111,194      39,465,450      44,034,041      87,180,799  
    
    
    
    
  
    Net Increase in Net Assets    58,148,865      51,401,532      68,141,723      92,093,724  
Net Assets:            
    Beginning of period        84,565,871        33,164,339        205,918,638        113,824,914  
    
    
    
    
  
    End of period    $142,714,736      $84,565,871      $274,060,361      $205,918,638  
    
    
    
    
  
    Undistributed net investment income
        included in net assets at end
        of period		    $                 —      —      $                 —      $         169,925  
    
    
    
    
  
 
See Notes to Financial Statements.
OLD WESTBURY FUNDS, INC.
STATEMENTS OF CHANGES IN NET ASSETS
(Continued)
 
 
         
International Fund
   Fixed Income Fund
     Six Months
Ended
April 30,
2000
(unaudited)
   Year
Ended
October 31,
1999
   Six Months
Ended
April 30,
2000
(unaudited)
   Year
Ended
October 31,
1999
From Operations:            
    Net investment income    $         260,982      $    1,211,932      $      299,023      $    389,948  
    Net realized gain/(loss) on
        investments and foreign currency
        translations		    15,679,526      21,458,796      (38,792 )    (116,960 )
    Net change in unrealized
        appreciation/depreciation on
        investments and foreign currency
        translations		    (3,494,923 )    13,321,072      (81,951 )    (477,873 )
    
    
    
    
  
    Net increase in net assets from
        operations		    12,445,585      35,991,800      178,280      (204,885 )
    
    
    
    
  
Distributions to Shareholders:            
    From net investment income    (3,496,681 )    (2,809,583 )    (262,795 )    (346,282 )
    From capital gains    —      —      —      (41,074 )
    
    
    
    
  
    Net decrease in net assets from
        distributions		    (3,496,681 )    (2,809,583 )    (262,795 )    (387,356 )
    
    
    
    
  
From Capital Stock Transactions:            
    Net proceeds from sale of capital
        stock		    181,517,486      117,263,751      6,332,133      6,379,379  
    Reinvestment of dividends    1,454,595      1,478,924      108,988      173,982  
    Net cost of capital stock redeemed    (13,138,470 )    (49,084,485 )    (1,844,139 )     (2,352,113 )
    
    
    
    
  
    Net increase in net assets resulting
        from capital stock transactions		    169,833,611      69,658,190      4,596,982      4,201,248  
    
    
    
    
  
    Net Increase in Net Assets    178,782,515      102,840,407      4,512,467      3,609,007  
Net Assets:            
    Beginning of period      226,072,351        123,231,944          9,207,665        5,598,658  
    
    
    
    
  
    End of period    $404,854,866      $226,072,351      $13,720,132      $9,207,665  
    
    
    
    
  
    Undistributed net investment income
        included in net assets at end
        of period		    $                 —      $    2,063,106      $      163,260      $    127,392  
    
    
    
    
  
 
See Notes to Financial Statements
OLD WESTBURY FUNDS, INC.
STATEMENTS OF CHANGES IN NET ASSETS
(Concluded)
 
 
         
Municipal Bond Fund
     Six Months
Ended
April 30,
2000
(unaudited)
   Year
Ended
October 31,
1999
From Operations:      
    Net investment income    $      383,919      $      539,838  
    Net realized loss on investments    (152,513 )    (215,548 )
    Net change in unrealized appreciation/depreciation on investments    371,396      (980,440 )
    
    
  
    Net increase/(decrease) in net assets from operations    602,802      (656,150 )
    
    
  
Distributions to Shareholders:      
    From net investment income    (360,082 )    (451,546 )
    From capital gains    —      (46,466 )
    
    
  
    Net decrease in net assets from distributions    (360,082 )    (498,012 )
    
    
  
From Capital Stock Transactions:      
    Net proceeds from sale of capital stock    8,006,038      11,797,870  
    Reinvestment of dividends    153,144      148,516  
    Net cost of capital stock redeemed    (7,754,169 )    (2,358,271 )
    
    
  
    Net increase in net assets resulting from
        capital stock transactions		    405,013      9,588,115  
    
    
  
    Net Increase in Net Assets    647,733      8,433,953  
Net Assets:      
    Beginning of period      19,484,334        11,050,381  
    
    
  
    End of period    $20,132,067      $19,484,334  
    
    
  
    Undistributed net investment income included in net assets at end
        of period		    $      244,420      $      220,583  
    
    
  
 
See Notes to Financial Statements
OLD WESTBURY FUNDS, INC.
FINANCIAL HIGHLIGHTS
April 30, 2000
(For a share outstanding throughout each period)
 
Period
ended
October 31,
   Net asset
value,
beginning
of period
   Net
investment
income/
(loss)
   Net realized
and
unrealized
gain/(loss) on
investments,
and foreign
currencies
   Total
from
investment
operations
   Distributions
from net
investment
income
   Distributions
from
capital
gains
                 
Core Equities Fund               
2000 (a)    $12.99    (0.02 )    2.62      2.60      —      —  
1999    $10.01    (0.03 )    3.02      2.99      (0.01 )    —  
1998 (b)(f)    $10.00    (0.01 )    0.02      0.01      —      —  
Capital Opportunity Fund            
2000 (a)    $11.31    0.01      1.47      1.48      (0.03 )    —  
1999    $10.63    0.04      0.64      0.68      —      —  
1998    $11.82    (0.07 )    (1.12 )    (1.19 )    —      —  
1997 (c)(f)    $10.00    (0.06 )    1.88      1.82      —      —  
International Fund               
2000 (a)    $12.24    0.08      0.65      0.73      (0.16 )    —  
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               
2000 (a)    $10.07    0.26      (0.12 )    0.14      (0.29 )    —  
1999    $10.93    0.48      (0.75 )    (0.27 )    (0.51 )    (0.08 )
1998 (d)(f)    $10.00    0.28      0.65      0.93      —      —  
Municipal Bond Fund               
2000 (a)    $  9.92    0.20      0.09      0.29      (0.20 )    —  
1999    $10.62    0.31      (0.65 )    (0.34 )    (0.32 )    (0.04 )
1998 (e)(f)    $10.00    0.21      0.41      0.62      —      —  
 
  * 
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.
 
*** 
Net Investment Income/(loss) is reflected after expense waivers.
 
(a) 
For the six month period ended April 30, 2000. (Unaudited)
 
(b) 
For the period from March 2, 1998 (commencement of operations) to October 31, 1998.
 
(c) 
For the period from February 28, 1997 (commencement of operations) to October 31, 1997.
 
(d) 
For the period from March 12, 1998 (commencement of operations) to October 31, 1998.
 
(e) 
For the period from March 6, 1998 (commencement of operations) to October 31, 1998.
 
(f) 
Per share values calculated using average shares outstanding.
 
See Notes to Financial Statements.
 
 
 
 
 
 
               Ratios to Average Net Assets
           
Total
distributions
   Net asset
value, end
of period
   Total
return*
   Net
expenses
   Net
investment
income/(loss)***
   Expense
Waiver
     Net assets,
end
of period
(000 omitted)
   Portfolio
turnover
rate
                          
—      $15.59    20.02 %    1.25 %    (0.55 %)    (0.10 %)      $142,714    83 %
(0.01 )    $12.99    29.9 %    1.23 %    (0.41 %)    (0.19 %)      $  84,566    116 %
—      $10.01    0.1 %    1.25 %**    (0.03 )**    (0.98 %)**      $  33,164    56 %
                          
(0.03 )    $12.76    13.18 %    1.35 %    (0.04 %)    0.00 %      $274,060    189 %
—      $11.31    6.4 %    1.38 %    0.12 %    (0.02 %)      $205,919    102 %
—      $10.63    (10.1 %)    1.48 %    (0.57 %)    (0.09 %)      $113,825    140 %
—      $11.82    18.2 %    1.50 %**    (0.79 %)**    (1.08 %)**      $  51,528    46 %
                          
(0.16 )    $12.81    5.97 %    1.37 %    0.16 %    0.00 %      $404,854    56 %
(0.25 )    $12.24    28.8 %    1.43 %    0.80 %    (0.03 %)      $226,072    160 %
(0.90 )    $  9.74    (10.2 %)    1.49 %    1.27 %    (0.04 %)      $123,232    129 %
(0.15 )    $11.75    6.6 %    1.50 %    0.98 %    (0.02 %)      $173,793    58 %
(0.14 )    $11.16    15.5 %    1.50 %    1.19 %    (0.02 %)      $135,794    55 %
(0.08 )    $  9.80    (8.6 %)    1.50 %    1.40 %    (0.10 %)      $104,194    32 %
                          
(0.29 )    $  9.92    1.39 %    1.05 %    5.65 %    (1.27 %)      $  13,720    18 %
(0.59 )    $10.07    (2.7 %)    1.05 %    4.96 %    (2.11 %)      $    9,208    83 %
—      $10.93    9.3 %    1.05 %**    4.48 %**    (6.08 %)**      $    5,599    30 %
                          
(0.20 )    $10.01    2.92 %    1.05 %    3.97 %    (0.62 %)      $  20,132    68 %
(0.36 )    $  9.92    (3.3 %)    1.05 %    3.50 %    (1.00 %)      $  19,484    96 %
—      $10.62    6.2 %    1.05 %**    3.40 %**    (2.90 %)**      $  11,050    40 %
 
OLD WESTBURY FUNDS, INC.
NOTES TO FINANCIAL STATEMENTS
April 30, 2000 (Unaudited)
 
 
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”), is a diversified, open-end management investment company. The Fund’s Articles of Incorporation permit the Directors to create an unlimited number of series, each of which is a separate class of shares. At April 30, 2000, the Fund consisted of five separate investment portfolios (each portfolio individually referred to as a “Portfolio” and collectively as the “Portfolios”) which are presented herein:
 
Portfolio Name      Investment Objective
Old Westbury Core Equities Fund
(“Core Equities Fund”)		      Above-average long-term
capital appreciation.
Old Westbury Capital Opportunity Fund
(“Capital Opportunity Fund”)		      Capital appreciation.
Old Westbury International Fund
(“International Fund”)		      Long-term growth of capital.
Old Westbury Fixed Income Fund
(“Fixed Income Fund”)		      Total return (consisting
of current income and
capital appreciation).
Old Westbury Municipal Bond Fund
(“Municipal Bond Fund”)		      Dividend income
exempt from regular
Federal 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 Funds:
 
        A.   Cash and Equivalents.  Cash and equivalents for the Capital 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 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 as 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 Portfolio’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.
 
        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 April 30, 2000.
 
        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 Portfolios are 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.   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.
 
        At April 30, 2000, each Portfolio had the following capital loss carryforwards for federal income tax purposes, which will expire in the following years:
 
OLD WESTBURY FUNDS, INC.
NOTES TO FINANCIAL STATEMENTS
April 30, 2000 (Unaudited) (Continued)
 
Portfolio Name
     2005
     2006
     2007
     Total
Core Equities Fund                $1,758,944                $1,758,944
Capital Opportunities
     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
 
        The capital loss carryforward will reduce the Portfolios’ taxable income arising from future net realized gains on investments, if any, to the extent permitted by the Code, and thus will reduce the amount of the distributions to shareholders which would otherwise be necessary to relieve the Portfolios of any liability for federal tax.
 
        G.   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.
 
        H.   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 market prices are available, at the fair value as determined in accordance with procedures approved by the Board of Directors.
 
OLD WESTBURY FUNDS, INC.
NOTES TO FINANCIAL STATEMENTS
April 30, 2000 (Unaudited) (Continued)
 
        Additional information on each restricted security held in Capital Opportunity Fund at April 30, 2000 is as follows:
 
Security
     Acquisition Date
     Acquisition Cost
Candescent Technology      4/17/1998      $2,677,000
 
        I.   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.
 
Capital 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 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 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 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’s 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 $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 Portfolio’s custodian. Bessemer is responsible for maintaining the books and records of the Portfolio’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:
 
     Core Equities Fund
     For the Six Months Ended
April 30, 2000
   For the Year Ended
October 31, 1999
     Shares
   Dollars
   Shares
   Dollars
Common stock
    sold		    3,661,831      $56,928,791      4,336,116      $53,578,441  
Reinvestment of
    dividends		    —      —      2,092      23,122  
Common stock
    redeemed		    (1,018,058 )     (15,817,597 )    (1,138,157 )     (14,136,113 )
    
    
    
    
  
Net increase    2,643,773      $41,111,194      3,200,051      $39,465,450  
    
    
    
    
  
 
     Capital Opportunity Fund
     For the Six Months Ended
April 30, 2000
   For the Year Ended
October 31, 1999
     Shares
   Dollars
   Shares
   Dollars
Common stock
    sold		    7,187,501      $91,918,022      11,137,731      $128,272,296  
Reinvestment of
    dividends		    14,390      187,795      —      —  
Common stock
    redeemed		    (3,925,507 )     (48,071,776 )    (3,643,240 )    (41,091,497 )
    
    
    
    
  
Net increase    3,276,384      $44,034,041      7,494,491      $  87,180,799  
    
    
    
    
  
OLD WESTBURY FUNDS, INC.
NOTES TO FINANCIAL STATEMENTS
April 30, 2000 (Unaudited) (Continued)
 
     International Fund
     For the Six Months Ended
April 30, 2000
   For the Year Ended
October 31, 1999
     Shares
   Dollars
   Shares
   Dollars
Common stock
     sold		    14,010,953      $181,517,486      10,297,038      $117,263,751  
Reinvestment of
     dividends		    114,175      1,454,595      148,636      1,478,924  
Common stock
     redeemed		    (1,004,407 )    (13,138,470 )    (4,620,577 )    (49,084,485 )
    
    
    
    
  
Net increase    13,120,721      $169,833,611      5,825,097      $  69,658,190  
    
    
    
    
  
 
     Fixed Income Fund
     For the Six Months Ended
April 30, 2000
   For the Year Ended
October 31, 1999
     Shares
   Dollars
   Shares
   Dollars
Common stock
     sold		    643,834      $    6,332,133      616,350      $    6,379,379  
Reinvestment of
     dividends		    11,190      108,988      16,797      173,982  
Common stock
     redeemed		    (187,371 )    (1,844,139 )    (230,558 )    (2,352,113 )
    
    
    
    
  
Net increase    467,653      $    4,596,982      402,589      $    4,201,248  
    
    
    
    
  
 
     Municipal Fund
     For the Six Months Ended
April 30, 2000
   For the Year Ended
October 31, 1999
     Shares
   Dollars
   Shares
   Dollars
Common stock
     sold		    809,187      $    8,006,038      1,137,341      $  11,797,870  
Reinvestment of
     dividends		    15,675      153,144      14,332      148,516  
Common stock
     redeemed		    (778,994 )    (7,754,169 )    (227,420 )    (2,358,271 )
    
    
    
    
  
Net increase    45,868      $         405,013      924,253      $    9,588,115  
    
    
    
    
  
 
OLD WESTBURY FUNDS, INC.
NOTES TO FINANCIAL STATEMENTS
April 30, 2000 (Unaudited) (Concluded)
 
4.  Purchase and Sales of Securities.  For the six months ended April 30, 2000 purchases and sales of investment securities other than short-term investments were as follows:
 
Fund
   Purchases
   Sales
Core Equities Fund    185,930,687    96,022,180
Capital Opportunity Fund    412,197,802    379,521,042
International Fund    329,616,720    171,445,902
Fixed Income Fund    6,528,156    1,812,451
Municipal Bond Fund    15,429,878    12,174,146
 
        At April 30, 2000, the cost of investments for federal income tax purposes was substantially the same as the cost for financial reporting purposes.
       Net Unrealized
Appreciation/
(Depreciation) for
Federal Tax
Purposes
   Aggregate
Gross
Unrealized
Appreciation for
Federal Tax
Purposes
   Aggregate Gross
Unrealized
Depreciation for
Federal Tax
Purposes
OLD WESTBURY FUNDS
                       
Core Equities Fund    $33,784,142      $34,769,554    $    (985,411 )
Capital Opportunity Fund    28,907,341      35,777,438    (6,870,097 )
International Fund    18,011,730      41,360,993     (23,349,263 )
Fixed Income Fund    (303,252 )    26,897    (330,149 )
Municipal Bond Fund    (404,552 )    87,794    (492,346 )
Investment Advisor:
Bessemer Trust Company, N.A.
630 Fifth Avenue
New York, NY 10111
(212) 708-9100
 
Distributor and Shareholder
Servicing Agent:
Edgewood Services, Inc.
5800 Corporate Drive
Pittsburgh, PA 15237-5829
 
Transfer Agent:
BISYS Fund Services Ohio, Inc.
3435 Stelzer Road
Columbus, OH 43219
 
Custodian:
Bessemer Trust Company, N.A.
100 Woodbridge Center Drive
Woodbridge, NJ 07095
Administrator:
Federated Administrative Services
Federated Investors Tower
1001 Liberty Avenue
Pittsburgh, PA 15222-3779
 
Shareholder Servicing Agent:
Bessemer Trust Company, N.A.
630 Fifth Avenue
New York, NY 10111
(212) 708-9100
 
Independent Auditors:
Deloitte & Touche LLP
Two World Financial Center
New York, NY 10281-1414
 
Cusip 680414307
Cusip 680414208
Cusip 680414109
Cusip 680414406
Cusip 680414505
G01963-05 (06/00)
 
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.


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