<PAGE>
The Emerging Markets Equity Portfolio
Semi-Annual Report April 30, 1995
(unaudited)
(The following pages should be read in conjunction
with The Pierpont Emerging Markets Equity Fund
Semi-Annual Financial Statements)
15
<PAGE>
THE EMERGING MARKETS EQUITY PORTFOLIO
SCHEDULE OF INVESTMENTS (UNAUDITED)
APRIL 30, 1995
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
DESCRIPTION SHARES VALUE (NOTE 1a)
- ------------------------------------------------------------------------------------------ ----------- ---------------
<S> <C> <C>
COMMON STOCKS (77.0%)
ARGENTINA (4.3%)
Banco Frances Del Rio De La Plata SA (ADR) (Banking & Finance).......................... 99,700 $ 1,831,988
Cia Naviera Perez Companc (Multi-Industry).............................................. 87,846 358,376
Compania Naviera Perez SA (Spon. ADR) (Multi-Industry).................................. 67,260 538,080
Corp. Cementeria Argentina (Building & Materials)....................................... 413,000 2,044,146
Dalmine Siderca SA (Metal, Materials & Paper)........................................... 4,625,000 2,760,850
Molinos Rio De La Plat (Food)........................................................... 405,335 2,026,472
Nobleza Piccardo (Multi-Industry)....................................................... 592,000 1,941,566
Quilmes Industrials (Quinsa) (Registered) (Food)........................................ 271,700 5,162,300
Transportadora De Gas Del Sur SA (ADR) (Utility)........................................ 299,100 2,953,614
YPF Sociedad Anonima (ADS) (Energy)..................................................... 231,300 4,683,826
---------------
24,301,218
---------------
BOLIVIA (0.3%)
Compania Boliviana De Energia Electrica (Utilities & Telecom)........................... 61,600 1,532,300
---------------
BRAZIL (3.5%)
Centrais Eletricas Brasileiras SA (Electrobras) (Utilities & Telecom)................... 11,382 3,143,304
Companhia Energetica De Minas Gerais SA (CEMIG) (Spon. ADR Rep Non-Vtg) (Utilities &
Telecom)............................................................................... 176,419 4,122,507
Companhia Siderurgica Nacional (ADR) (Metal, Materials & Paper)......................... 108,000 2,781,000
Santa Elina Gold Corp. Inc. (Metal & Mining)............................................ 3,300,000 4,719,000
Telecomunicacoes Brasileiras SA (Telebras) (Voting Shares) (Utilities & Telecom)........ 2,906,539 86,989
Votorantim Celulose E Papel (ADR) (Metal, Materials & Paper)............................ 278,500 5,361,126
---------------
20,213,926
---------------
CANADA (0.0%)
Minera Rayrock, Inc. (Multiple Voting Shares) (Mining).................................. 6,000 8,164
Minera Rayrock, Inc. (Subsidiary Voting Shares) (Mining)................................ 145,000 212,232
---------------
220,396
---------------
CHILE (2.6%)
Antofagasta Holdings (Mining)........................................................... 198,111 924,560
Chilectra Metropolitana Distribuidora (Spon. ADR) (Utilities & Telecom) (144A).......... 18,500 940,422
Compania Cervecerias Unidas SA (Spon. ADR) (Food)....................................... 199,900 4,772,614
Compania De Telefonos de Chile SA (Spon. ADR) (Utilities & Telecom)..................... 78,000 5,382,000
Sociedad Quimica Y Minera De Chile (Spon. ADR) (Chemicals)*............................. 71,058 2,478,148
---------------
14,497,744
---------------
CHINA (1.4%)
Dongfang Electrical Machinery Co. (Energy).............................................. 3,200,000 1,074,796
Luoyang Glasswork Co. (Series H) (Building & Contractors)............................... 2,462,000 1,041,603
Shanghai Erfangji Co. (Series B) (Capital Goods)........................................ 1,612,000 232,128
Shanghai Shangling Electric Appliances (Consumer)....................................... 100,000 74,000
Shanghai Tyre and Rubber Co. Ltd. (Series B) (Metal, Materials & Paper)................. 1,241,000 312,732
Tsingtao Brewery Co. Ltd. (Series H) (Food)............................................. 6,720,000 2,387,200
</TABLE>
See Accompanying Notes.
16
<PAGE>
THE EMERGING MARKETS EQUITY PORTFOLIO
SCHEDULE OF INVESTMENTS (UNAUDITED) (CONTINUED)
APRIL 30, 1995
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
DESCRIPTION SHARES VALUE (NOTE 1a)
- ------------------------------------------------------------------------------------------ ----------- ---------------
<S> <C> <C>
CHINA (CONTINUED)
Yizheng Chemical Fibre Co. (Series H) (Chemicals)....................................... 7,702,000 $ 2,562,028
---------------
7,684,487
---------------
COLOMBIA (0.2%)
Banco Ganadero SA (Spon. ADR) (Banking & Finance) (144A)................................ 3,000 54,000
Banco Ganadero SA (GDS) (Banking & Finance)............................................. 50,000 900,000
Corp Financiera Del Valle SA (ADR) (Banking & Finance) (144A)........................... 18,590 260,260
---------------
1,214,260
---------------
CZECH REPUBLIC (0.3%)
Ceska Pojistovna (Insurance)............................................................ 4,940 748,321
Cokoladovny Praha (Food)................................................................ 10,000 728,561
---------------
1,476,882
---------------
ECUADOR (0.3%)
La Cemento Nacional CA (GDS) (Building & Materials) (144A).............................. 8,000 1,800,000
---------------
GREECE (3.0%)
Alpha Credit Bank (Registered) (Banking & Finance)...................................... 14,166 690,053
Aluminum Company of Greece (Registered) (Metal, Materials & Paper)...................... 30,360 1,330,400
Athens Medical Centre ( Registered) (Transport & Trade Services)........................ 190,000 1,000,797
Boutaris Wine Co. (Food)................................................................ 14,400 82,861
Ergo Bank (Registered) (Banking & Finance).............................................. 18,100 769,923
Hellenic Bottling Co. SA (Food)*........................................................ 235,602 6,569,994
Hellenic Sugar Industry SA (Food)....................................................... 234,850 2,889,887
Michaniki SA (Building & Contractors)................................................... 126,720 1,761,246
National Investment Bank for Industrial Development (Registered) (Banking & Finance).... 79,000 1,729,174
Titan Cement Co. (Registered) (Building & Contractors).................................. 13,000 440,200
---------------
17,264,535
---------------
HONG KONG (1.9%)
Guangdong Investment Ltd. (Banking & Finance)........................................... 2,978,000 1,375,320
M. C. Packaging (Metal, Materials & Paper)*............................................. 2,850,000 994,058
Pacific Concord Holding (Transportation & Trade Services)............................... 7,614,000 1,219,656
Tian An China Investments Co. Ltd. (Building & Contractors)............................. 10,186,750 1,618,615
World Houseware Holdings (Food)......................................................... 10,170,000 2,220,296
Yue Yuen Industrial Holdings (Consumer)................................................. 14,870,000 3,438,484
---------------
10,866,429
---------------
HUNGARY (1.5%)
Fotex RT (Consumer)..................................................................... 310,000 542,436
Hungarian Foreign Trade Bank Ltd. (Banking & Finance)................................... 17,000 1,395,731
Julius Meinl International AG (Food).................................................... 84,000 2,793,104
Pick Szeged RT (Spon. GDS) (Food) (144A)................................................ 45,600 2,651,915
Skala Coop (Munich Exchange) (Retail)................................................... 25,000 345,554
</TABLE>
See Accompanying Notes.
17
<PAGE>
THE EMERGING MARKETS EQUITY PORTFOLIO
SCHEDULE OF INVESTMENTS (UNAUDITED) (CONTINUED)
APRIL 30, 1995
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
DESCRIPTION SHARES VALUE (NOTE 1a)
- ------------------------------------------------------------------------------------------ ----------- ---------------
<S> <C> <C>
HUNGARY (CONTINUED)
Skala Coop (Vienna Exchange) (Retail)................................................... 5,000 $ 70,330
Zalakeramia (Building & Contractors).................................................... 29,333 460,586
---------------
8,259,656
---------------
INDIA (2.1%)
Hindustan Development Corp. (GDR) (Multi-Industry) (144A)............................... 1,000,000 900,000
Shriram Industrial Enterprise (GDR) (Multi-Industry) (144A)............................. 258,000 2,322,000
Shriram Industrial Enterprise (GDR) (Multi-Industry).................................... 153,400 1,380,600
Shriram Industrial Enterprise (GDR & Warrant Units) (Multi-Industry) (144A)............. 1,000 25,000
Southern Petrochemical Industrial Corp. (GDS) (Chemicals)*.............................. 556,500 4,660,690
Videocon International Ltd. (GDR) (Consumer)............................................ 760,000 2,432,000
---------------
11,720,290
---------------
INDONESIA (4.2%)
Bakrie and Brothers (Metal, Materials & Paper).......................................... 87,500 258,621
Goodyear Indonesia (Motors)............................................................. 100,000 201,523
Duta Anggada Realty (Real Estate)....................................................... 4,031,000 2,391,885
Indorama Synthetic (Metal, Materials & Paper)........................................... 180,000 516,905
Inti Indorayon Utama (Metal, Materials & Paper)......................................... 642,000 1,221,899
International Nickel Indonesia (Metal, Materials & Paper)............................... 3,555,700 7,722,861
Jakarta International Hotels and Development (Media & Leisure).......................... 121,500 100,660
Mayatexdian Industry (Consumer)......................................................... 240,000 110,166
Modern Photo Film Co. (Consumer)........................................................ 90,000 376,847
Multi Bintang Indonesia (Food).......................................................... 200,000 1,612,181
Niaga Bank (Banking & Finance).......................................................... 654,300 1,230,658
Pan Brothers Textiles (Consumer)........................................................ 165,000 48,030
Putra Surya Perkasa (Real Estate)....................................................... 810,000 389,946
Semen Gresik (Building & Materials)*.................................................... 800,000 3,654,279
Surya Toto Indonesia (Building & Materials)............................................. 423,500 777,586
Tempo Scan Pacific (Healthcare)......................................................... 332,000 1,442,185
Unilever Indonesia (Consumer)........................................................... 47,605 618,247
United Tractors (Capital Goods)......................................................... 500,000 873,265
---------------
23,547,744
---------------
MALAYSIA (15.1%)
AMMB Holdings Berhad (Banking & Finance)................................................ 461,000 4,550,326
Anakku Corp. Berhad (Consumer).......................................................... 118,000 312,662
Antah Holdings Berhad (Multi-Industry).................................................. 235,200 163,650
Aokam Perdana Berhad (Metal, Materials & Paper)......................................... 181,200 813,641
Carlsberg Brewery Malaysia Berhad (Food)................................................ 565,416 2,310,155
Cold Storage Malaysia Berhad (Retail)................................................... 74,000 106,570
East Asiatic Co. Malaysia Berhad (Transport & Trade Services)........................... 90,000 147,816
Edaran Otomobil Nasional Berhad (Motors)................................................ 592,000 4,214,888
Golden Hope Plantations Berhad (Metal, Materials & Paper)............................... 3,005,166 5,105,866
Hong Leong Industries Berhad (Multi-Industry)........................................... 979,000 5,188,067
Island & Peninsular Berhad (Building & Contractors)..................................... 230,500 559,466
Kian Joo Can Factory Berhad (Consumer).................................................. 548,000 1,895,388
Kian Joo Can Factory Berhad (A Shares) (Consumer)....................................... 266,000 920,024
</TABLE>
See Accompanying Notes.
18
<PAGE>
THE EMERGING MARKETS EQUITY PORTFOLIO
SCHEDULE OF INVESTMENTS (UNAUDITED) (CONTINUED)
APRIL 30, 1995
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
DESCRIPTION SHARES VALUE (NOTE 1a)
- ------------------------------------------------------------------------------------------ ----------- ---------------
<S> <C> <C>
MAYALSIA (CONTINUED)
Kuala Lumpur Kepong Berhad (Building & Contractors)..................................... 1,570,000 $ 4,509,305
Lion Corp. Berhad (Transport & Trade Services).......................................... 217,000 246,671
Malayan Banking Berhad (Banking & Finance).............................................. 216,000 1,476,699
Malaysia Mining Corp. Berhad (Metal, Materials & Paper)................................. 1,659,000 2,791,845
Malaysian International Shipping Corp. Berhad (Transport & Trade Services).............. 1,631,333 4,223,517
Malaysian Tobacco Co. Berhad (Food)..................................................... 322,000 505,405
Matsushita Electric Co. Malaysia Berhad (Consumer)...................................... 296,000 2,275,082
Nestle Malaysia Berhad (Food)........................................................... 1,065,000 7,022,453
Nylex Malaysia Berhad (Chemicals)....................................................... 840,000 2,038,836
Perlis Plantations Berhad (Transport & Trade Services).................................. 1,064,000 3,443,367
Public Bank Berhad (Banking & Finance).................................................. 3,145,000 5,368,893
Putera Capital Berhad (Real Estate)..................................................... 180,000 320,388
Resorts World Berhad (Media & Leisure).................................................. 907,000 4,769,823
Shell Refinery Malaysia (Energy)........................................................ 996,500 3,285,387
Sime Darby Berhad (Multi-Industry)...................................................... 63,600 162,087
Sime U.E.P. Properties (Real Estate).................................................... 1,434,000 2,540,826
Sistem Televisyen Malaysia (Media & Leisure)............................................ 1,270,000 2,722,897
Southern Bank Berhad (Banking & Finance)................................................ 150,000 297,330
Southern Bank Berhad (A Shares) (Banking & Finance)..................................... 81,000 139,587
Tanjong Co. (Media & Leisure)........................................................... 55,000 156,857
Tenaga Nasional Berhad (Utilities & Telecom)............................................ 1,928,000 8,579,290
UMW Holdings Berhad (Capital Goods)*.................................................... 911,200 2,266,943
---------------
85,432,007
---------------
MEXICO (8.3%)
Cementos Mexicanos SA de CV (Class B) (Building & Materials)............................ 1,431,675 4,562,352
Cifra SA de Cv (Class B) (Retail)....................................................... 2,645,000 3,775,437
Cydsa SA de CV (Class A) (Chemicals).................................................... 380,600 1,124,428
Desc Sociedad de Fomento Industrial SA de CV (Class A) (Metal, Materials & Paper)....... 268,000 720,598
Desc Sociedad de Fomento Industrial SA de CV (Class B) (Metal, Materials & Paper)....... 244,000 627,718
Fomento Economico Mexicana SA de CV (Class B) (Food).................................... 1,040,000 2,247,437
Grupo Carso SA de CV (Class A) (Capital Goods).......................................... 534,400 2,838,308
Grupo Casa Autrey SA de Cv (Spon. ADR) (Food)........................................... 107,500 1,652,812
Grupo Embotellador De Mexico SA de CV (Class BCP) (Food)................................ 320,000 593,793
Grupo Financiero Banamex Accival SA de CV (Class L) (Banking & Finance)................. 1,900 3,122
Grupo Financiero Banamex Accival SA de CV (Class C) (Banking & Finance)................. 1,134,000 1,882,159
Grupo Financiero Banamex Accival SA de CV (Class B) (Banking & Finance)................. 563,000 941,915
Grupo Financiero Bancomer SA de Cv (Class B) (Banking & Finance)*....................... 1,689,500 501,943
Grupo Financiero Bancomer SA de Cv (Class L) (Banking & Finance)........................ 270,810 170,801
Grupo Financiero Del Norte SA de CV (Class B) (Banking & Finance)....................... 455,000 573,942
Grupo Financiero Probursa SA de CV (Class B) (Banking & Finance)........................ 502,300 75,032
Grupo Industrial Maseca SA de Cv (Class B) (Food)....................................... 181,333 2,198,664
Grupo Simec SA de Cv (ADR; Class B) (Metal, Materials & Paper) 147,500 1,475,000
Grupo Situr SA de Cv (Class B) (Media & Leisure)*....................................... 1,911,966 806,040
Industrias Penoles SA de CV (Class CP) (Metal, Materials & Paper)....................... 910,700 2,297,535
Kimberley Clark De Mexico SA de CV (Class A) (Metal, Materials & Paper)................. 273,000 2,741,329
Telefonos De Mexico SA de CV (ADR) (Utilities & Telecom)................................ 200,000 303,125
Telefonos De Mexico SA de CV (ADR L Shares) (Utilities & Telecom)....................... 330,400 9,994,600
Transportacion Maritima Mexicana SA de CV (ADR L Shares) (Transport & Trade Services)... 349,800 2,361,150
</TABLE>
See Accompanying Notes.
19
<PAGE>
THE EMERGING MARKETS EQUITY PORTFOLIO
SCHEDULE OF INVESTMENTS (UNAUDITED) (CONTINUED)
APRIL 30, 1995
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
DESCRIPTION SHARES VALUE (NOTE 1a)
- ------------------------------------------------------------------------------------------ ----------- ---------------
<S> <C> <C>
MEXICO (CONTINUED)
Vitro Sociedad Anonima SA de CV (ADR) (Metal, Materials & Paper)........................ 266,500 $ 2,731,626
---------------
47,200,866
---------------
MOROCCO (0.4%)
Banque Commerciale Du Maroc (Banking & Finance)......................................... 370 17,318
Wafa Bank (Banking & Finance)........................................................... 57,500 2,533,070
---------------
2,550,388
---------------
PAKISTAN (0.2%)
Hub Power Co. (GDR) (Utilities & Telecom)............................................... 2,000 24,500
Pakistan Telecom Corp. (GDR) (Utilities & Telecom)...................................... 12,800 1,305,600
---------------
1,330,100
---------------
PERU (0.4%)
Banco Wiese Limitado SA (Spon. ADR) (Banking & Finance)................................. 226,811 2,041,300
---------------
PHILIPPINES (1.7%)
Metro Bank and Trust Co. (Banking & Finance)............................................ 1,604 29,094
Philippine National Bank (Banking & Finance)............................................ 174,190 1,651,630
Philippine Long Distance Telephone Co. (ADR) (Utilities & Telecom)...................... 5,600 357,000
Philippine Long Distance Telephone Co. (GDS) (Utilities & Telecom)...................... 75,000 2,606,250
RFM Corp. (Food)........................................................................ 9,562,500 2,606,288
San Miguel Corp. (Class B) (Food)....................................................... 644,800 2,301,975
---------------
9,552,237
---------------
POLAND (0.8%)
Okocim SA (Food)........................................................................ 40,700 979,481
Zywiec (Food)........................................................................... 50,400 3,830,278
---------------
4,809,759
---------------
PORTUGAL (2.2%)
Banco Commercial Portugues SA (Registered) (Banking & Finance).......................... 135,499 1,863,988
Banco Commercial Portugues SA (ADR) (Banking & Finance)................................. 30,200 407,700
Banco Totta E Acores SA (Registered) (Banking & Finance)................................ 14,300 301,893
Cel Cat Fabricas (Technology)........................................................... 34,500 793,895
Corporacao Industrial Do Norte (Building & Contractors)................................. 66,000 1,955,189
Efacec SA (Capital Goods)............................................................... 1,000 11,713
Efacec SA (New Shares) (Capital Goods).................................................. 81,000 904,658
Engil Soc De Construcao Civil SA (Building & Contractors)............................... 124,520 1,975,835
Mague-Gestao E Participacoes (Building & Contractors)................................... 16,576 349,943
Modelo Continente SGPS SA (Retail)*..................................................... 23,000 2,098,884
Uniao Cervejaria SA (UNICER) (Registered) (Food)........................................ 132,000 2,036,095
---------------
12,699,793
---------------
</TABLE>
See Accompanying Notes.
20
<PAGE>
THE EMERGING MARKETS EQUITY PORTFOLIO
SCHEDULE OF INVESTMENTS (UNAUDITED) (CONTINUED)
APRIL 30, 1995
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
DESCRIPTION SHARES VALUE (NOTE 1a)
- ------------------------------------------------------------------------------------------ ----------- ---------------
<S> <C> <C>
SLOVAK REPUBLIC (0.7%)
Nafta AS (Energy)....................................................................... 45,000 $ 3,717,352
Slovenske Lodenice AS (Capital Goods)................................................... 2,269 107,329
---------------
3,824,681
---------------
SOUTH AFRICA (6.8%)
Amalgamated Banks of South Africa (Banking & Finance)................................... 731,000 2,646,210
Anglovaal (GDR) (Multi- Industry)....................................................... 172,000 5,676,000
De Beers Consolidated Mines Ltd. (Centenary Linked Units) (Mining)...................... 229,000 6,375,526
Distillers Corporation of South Africa (Food)........................................... 332,300 844,799
Omni Media Corp. Ltd. (Media & Leisure)................................................. 46,240 424,860
Pepkor Ltd. (ADR) (Retail).............................................................. 500,000 6,750,000
Premier Group (Food).................................................................... 1,122,000 1,612,247
Sasol Ltd. (Energy)..................................................................... 698,200 6,704,558
South African Breweries Ltd. (South Africa) (Food)...................................... 64,400 1,779,595
South African Breweries Ltd. (United Kingdom) (Food).................................... 215,757 5,859,190
---------------
38,672,985
---------------
SOUTH KOREA (3.3%)
Daewoo Heavy Industries (Transport & Trade Services).................................... 142,000 1,750,902
Dong Ah Construction Industrial Co. (EDR) (Building & Contractors)...................... 125,000 1,593,750
Hansol Paper Co. (GDS) (Metal, Materials & Paper)....................................... 142,188 2,772,668
Kia Motors Corp. (Registered) (Motors).................................................. 10,522 144,678
Kia Motors Corp. (Spon. GDR) (Motors) (144A)............................................ 60,881 867,554
Korea Electric Power Corp. (Spon. ADR) (Utilities & Telecom)............................ 145,000 3,045,000
Korea Long Term Credit Bank (Banking & Finance)......................................... 46,000 1,333,508
Pohang Iron & Steel Co. (ADS) (Metal, Materials & Paper)................................ 70,000 1,933,750
Samsung Electronics Co. (GDS represents Voting shares) (Technology)..................... 545 27,250
Samsung Electronics Co. (GDS represents Non-voting shares) (Technology)................. 107,811 5,390,552
Samsung Engineering and Construction (GDS) (Building & Contractors)..................... 7,000 47,250
---------------
18,906,862
---------------
SRI LANKA (0.0%)
Distilleries Co. of Sri Lanka (Food).................................................... 500,000 63,310
---------------
TAIWAN (0.9%)
Asia Cement (GDS) (Building & Contractors).............................................. 33,365 675,641
China Steel Corp. (GDS) (Metal, Materials & Paper)...................................... 61,000 1,189,500
Hocheng Group Corp. (GDR) (Building & Materials) (144A)................................. 110,961 1,747,636
President Enterprises Corp. (GDR) (Food)................................................ 27,650 511,525
President Enterprises Corp. (GDR) (Food) (144A)......................................... 19,147 330,286
Microelectronics Technology (GDS) (Technology).......................................... 39,300 383,175
---------------
4,837,763
---------------
THAILAND (6.0%)
Advanced Info Service Public Co. (Utilities & Telecom).................................. 367,000 5,374,338
American Standard Sanitaryware Public Co. (Building & Contractors)...................... 94,800 1,543,322
</TABLE>
See Accompanying Notes.
21
<PAGE>
THE EMERGING MARKETS EQUITY PORTFOLIO
SCHEDULE OF INVESTMENTS (UNAUDITED) (CONTINUED)
APRIL 30, 1995
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
DESCRIPTION SHARES VALUE (NOTE 1a)
- ------------------------------------------------------------------------------------------ ----------- ---------------
<S> <C> <C>
THAILAND (CONTINUED)
Bangkok Bank Public Co. Ltd. (Banking & Finance)........................................ 282,000 $ 2,728,848
Bangkok Insurance Public Co. (Insurance)................................................ 9,800 174,523
Bangkok Rubber Public Co. Ltd. (Metal, Materials & Paper)............................... 1,730,000 1,529,884
Bumrungrad Hospital Public Co. Ltd. (Healthcare)........................................ 505,750 1,048,719
Charoen Pokphand Feedmill Public Co. (Capital Goods).................................... 296,500 1,977,069
Dhana Siam Finance and Securities Public Co. (Banking & Finance)........................ 270,768 1,155,952
Hana Microelectronics Co. (Technology).................................................. 119,720 340,736
International Cosmetics Public Co. Ltd. (Retail)........................................ 111,720 1,789,700
National Publishing Group Public Co. Ltd. (Media & Leisure)............................. 400,000 483,838
Oriental Hotel Public Co. Ltd. (Media & Leisure)........................................ 528,400 1,401,834
Pranda Jewelry (Capital Goods).......................................................... 165,200 423,159
Siam Cement Public Co. Ltd. (Building & Contractors).................................... 89,000 5,116,733
Siam Commercial Bank Public Co. (Banking & Finance)..................................... 545,000 4,609,069
Telecomasia (Utilities & Telecom)....................................................... 421,000 1,566,233
Thai Farmers Bank Public Co. (Banking & Finance)........................................ 145,710 1,279,665
Thai Military Bank Public Co. (Nil Paid Shares Issued 4/4/95) (Banking & Finance)....... 78,766 156,924
Thai Plastic and Chemical Public Co. Ltd. (Chemicals)................................... 239,000 1,583,940
---------------
34,284,486
---------------
TURKEY (3.5%)
Akbank (Non-Tradeable Receipts) (Banking & Finance)..................................... 4,849,478 1,310,670
Akbank TAS (Banking & Finance).......................................................... 9,698,956 2,621,339
Akcimento Ticaret AS (Building &Contractors)............................................ 1,402,000 2,306,464
Alarko Holdings (Transport & Trade Services)............................................ 456,000 401,880
Aygaz (Energy).......................................................................... 1,303,000 658,390
Eczacibasi Ilac (Healthcare)............................................................ 774,000 163,713
Ege Biracilik Ve Malt Sanayii (Food).................................................... 1,381,000 1,282,009
Eregli Demir Ve Celik Fabrikalari (Metal, Materials & Paper)............................ 13,475,000 2,343,478
Guney Biracilik Ve Malt Sanay (Food).................................................... 5,121,400 2,587,782
Mardin Cimento (Building & Contractors)................................................. 5,400,000 2,411,281
Sabah Yayincilik (Media & Leisure)...................................................... 17,152,850 725,620
Teletas Telekomunikasyon Endustri Ticaret AS (Utilities & Telecom)*..................... 2,840,000 1,001,175
Turk Garanti Bankasi (Spon. ADR) (Banking & Finance) (144A)............................. 219,999 577,497
Turk Siemens Kablo Ve Elecktrik Sanayii (Technology).................................... 2,302,000 703,314
Yapi Ve Kredi Bankasi (Banking & Finance)............................................... 7,236,950 969,462
---------------
20,064,074
---------------
VENEZUELA (0.8%)
Ceramicas Carabobo CA (Spon. ADR) (Class A) (Building & Materials)*..................... 1,280,000 800,000
Ceramicas Carabobo CA (Spon. ADR) (Class B) (Building & Materials)...................... 319,999 199,999
Mavesa CA (Spon. ADR) (Food) (144A)..................................................... 183,667 684,472
Mavesa CA (Spon. ADR) (Food)............................................................ 266,328 992,528
Venezolana De Prerreducidos Caroni CA (GDS) (Metal, Materials & Paper).................. 38,451 201,868
Venezolana De Pulpa Y Papel CA (Venepal) (GDS) (Class B) (Metal, Materials & Paper)*
(144A)................................................................................. 739,047 1,570,475
---------------
4,449,342
---------------
</TABLE>
See Accompanying Notes.
22
<PAGE>
THE EMERGING MARKETS EQUITY PORTFOLIO
SCHEDULE OF INVESTMENTS (UNAUDITED) (CONTINUED)
APRIL 30, 1995
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
DESCRIPTION SHARES VALUE (NOTE 1a)
- ------------------------------------------------------------------------------------------ ----------- ---------------
<S> <C> <C>
ZIMBABWE (0.3%)
Trans Zambezi Industries Ltd. (Multi-Industry).......................................... 1,300,000 $ 1,625,000
---------------
Total Common Stocks (cost $508,051,223)................................................. 436,944,820
---------------
PREFERRED STOCKS (8.3%)
BRAZIL (8.2%)
Acos Villares SA (Metal, Materials & Paper)............................................. 3,472,000 1,065,381
Aracruz Celulose SA (ADS) (Metal, Materials & Paper).................................... 370,800 3,568,950
Banco Do Estado De Sao Paulo SA (BANESPA) (Banking & Finance)........................... 215,300 1,418,031
Companhia Energetica De Minas Gerais SA (CEMIG) (ADR) (Utilities & Telecom) (144A)...... 287,547 6,757,355
Ceval Alimentos SA (ADR) (Food)......................................................... 190,000 2,477,600
Companhia Hering (Consumer)............................................................. 71,300 703,233
Companhia Vale Do Rio Doce SA (Spon. ADR) (Energy)...................................... 280,300 11,723,828
Copene Petroquimica do Nordeote SA (Spon. ADR) (Class A) (Chemicals).................... 166,200 5,925,844
Hering Textile Companhia SA (Consumer).................................................. 14,260 48,445
Petroleo Brasileiro SA (Chemicals)...................................................... 59,733,333 5,564,202
Refrigeracao Parana SA (ADR) (Consumer)................................................. 251,771 2,759,411
Telecomunicacoes Brasileiras SA (Telebras) (ADR) (Utilities & Telecom).................. 122,663 4,386,994
Viacao Aerea Riograndense SA (Varig) (Transportation & Trade Services).................. 130,000 398,904
---------------
46,798,178
---------------
GREECE (0.1%)
Boutaris Wine Co. (Food)................................................................ 32,280 142,882
Delta Dairy (Food)...................................................................... 1,417 25,810
Michaniki SA (GDR) (Building & Contractors)............................................. 11,520 139,462
National Investment Bank for Industrial Development (Banking & Finance)................. 10,000 177,054
---------------
485,208
---------------
Total Preferred Stock (cost $26,285,346).................................................. 47,283,386
---------------
<CAPTION>
PRINCIPAL
AMOUNT
-----------
<S> <C> <C>
CONVERTIBLE BONDS (2.2%)
INDONESIA (0.1%)
Inti Indorayon Utama Pt (7% Cnv Bds, due 05/02/06) (Metal, Materials & Paper)........... $ 900,000 801,000
---------------
MEXICO (0.2%)
Nacional Financiera (11.25% Cnv Bds, due 05/15/98) (Utilities & Telecom)................ 25,000 1,012,500
---------------
SOUTH KOREA (1.0%)
Daewoo Heavy Industries Ltd. ( 3% Cnv Bds, due 12/31/01) (Capital Goods)................ 200,000 315,000
Ssangyong Cement Co. (3% Cnv Bds, due 12/31/05) (Building & Contractors)................ 2,800,000 3,220,000
</TABLE>
See Accompanying Notes.
23
<PAGE>
THE EMERGING MARKETS EQUITY PORTFOLIO
SCHEDULE OF INVESTMENTS (UNAUDITED) (CONTINUED)
APRIL 30, 1995
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PRINCIPAL
DESCRIPTION AMOUNT VALUE
- ------------------------------------------------------------------------------ ---------- -----------
<S> <C> <C>
SOUTH KOREA (CONTINUED)
Ssangyong Oil Refinery Co. (3.75% Cnv Bds, due 12/31/08)
(Energy)................................................................... $2,000,000 $1,955,000
------------
5,490,000
------------
TAIWAN (0.4%)
Pacific Electric Wire & Cable (3.75% Cnv Bds, due 10/31/01)
(Technology)................................................................ 300,000 368,250
Yieh Loong Co. (2% Cnv Bds, due 12/31/00) (Metal, Materials
& Paper).................................................................... 2,500,000 1,782,755
------------
2,151,005
------------
THAILAND (0.5%)
Land & Houses Co. (5% Cnv Bds, due 04/29/03) (Building &
Contractors)................................................................ 1,450,000 1,903,125
MDX Public Co. Ltd. (4.75% Cnv Bds, due 09/17/03) (Building
& Contractors).............................................................. 2,093,000 1,104,058
------------
3,007,183
------------
Total Convertible Bonds (cost $14,739,105)................................. 12,461,688
------------
<CAPTION>
WARRANTS
---------
<S> <C> <C>
WARRANTS* (0.0%)
HONG KONG (0.0%)
World Houseware Holdings (Expire 12/8/95) (Food)........................... 80,000 1,023
Tian An China Investments Co. Ltd. (Expire 1/25/96)
(Building & Contractors).................................................. 888,150 4,130
------------
5,153
------------
INDIA (0.0%)
Shriram Industrial Enterprises (Expire 04/28/96; for GDR
144A) (Multi-Industry)..................................................... 86,000 6,880
------------
MALAYSIA (0.0%)
UMW Holdings Berhad (Capital Goods)......................................... 107,200 6,505
------------
Total Warrants (cost of $316,062)......................................... 18,538
------------
<CAPTION>
UNITS
---------
<S> <C> <C>
UNIT TRUSTS (1.9%)
CHILE (0.1%)
Chile Fund Inc.............................................................. 16,500 781,688
------------
RUSSIA (1.5%)
New Century Holdings Ltd. (Partnership III; Group B)+*...................... 1,800 2,777,400
New Century Holdings Ltd. (Partnership IV; Group I)+*....................... 2,000 2,298,000
</TABLE>
See Accompanying Notes.
24
<PAGE>
THE EMERGING MARKETS EQUITY PORTFOLIO
SCHEDULE OF INVESTMENTS (UNAUDITED) (CONTINUED)
APRIL 30, 1995
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
DESCRIPTION UNITS VALUE
- ------------------------------------------------------------------------------ ---------- -------------
<S> <C> <C>
RUSSIA (CONTINUED)
New Century Holdings Ltd. (Partnership V; Group II)+*....................... 3,800 $3,131,200
------------
8,206,600
------------
TAIWAN (0.3%)
R.O.C. Taiwan Fund.......................................................... 140,000 1,557,500
------------
Total Unit Trusts (cost $9,105,000)....................................... 10,545,788
------------
<CAPTION>
PRINCIPAL
AMOUNT
---------
<S> <C> <C>
REPURCHASE AGREEMENT (11.0%)
State Street Bank and Trust 5.50% dated 4/28/95 due 5/1/95,
proceeds $62,302,542 (collateralized by $54,240,000 U.S.
Treasury Bond, 8.875% due 8/15/17, valued at $63,519,891)................... $62,274,000 62,274,000
------------
Total Investments (cost $620,770,736) (100.4%)................................ 569,528,220
Other assets net of liabilities (-0.4%)....................................... (1,954,867)
------------
Total Net Assets (100.0%)..................................................... $567,573,353
------------
------------
</TABLE>
- ------------------------------
Note: Based on the cost of investments of $620,897,815 for Federal Income Tax
purposes at April 30, 1995, the aggregate gross unrealized appreciation and
depreciation was $61,665,437 and $113,035,032, respectively, resulting in net
unrealized depreciation of investments of $51,369,595.
+ - Restricted securities. See Note 4.
* - Non-income producing securities.
ADR - American Depositary Receipt.
ADS - American Depositary Shares.
Spon. ADR - Sponsored ADR.
EDR - European Depositary Receipt.
GDR - Global Depositary Receipt.
GDS - Global Depositary Shares.
Spon. GDR - Sponsored GDR.
144A - Securities restricted for resale to Qualified Institutional Buyers.
See Accompanying Notes.
25
<PAGE>
THE EMERGING MARKETS EQUITY PORTFOLIO
SCHEDULE OF INVESTMENTS (UNAUDITED) (CONTINUED)
APRIL 30, 1995
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PERCENT OF
INDUSTRY DIVERSIFICATION PORTFOLIO
-----------
<S> <C>
Food.............................................................................. 14.29%
Utilities & Telecom............................................................... 11.32%
Repurchase Agreements............................................................. 10.93%
Metal, Material & Paper........................................................... 10.77%
Banking & Finance................................................................. 9.84%
Building & Contractors............................................................ 6.10%
Energy............................................................................ 5.94%
Chemicals......................................................................... 4.55%
Multi-Industry.................................................................... 3.22%
Consumer.......................................................................... 2.91%
Building & Materials.............................................................. 2.74%
Transport & Trade Services........................................................ 2.67%
Retail............................................................................ 2.62%
Media & Leisure................................................................... 2.04%
Unit Trusts....................................................................... 1.85%
Capital Goods..................................................................... 1.75%
Technology........................................................................ 1.41%
Mining............................................................................ 1.32%
Real Estate....................................................................... 0.99%
Motors............................................................................ 0.95%
Metal & Mining.................................................................... 0.83%
Healthcare........................................................................ 0.47%
Tobacco........................................................................... 0.34%
Insurance......................................................................... 0.16%
</TABLE>
See Accompanying Notes.
26
<PAGE>
THE EMERGING MARKETS EQUITY PORTFOLIO
STATEMENT OF ASSETS AND LIABILITIES (UNAUDITED)
APRIL 30, 1995
- --------------------------------------------------------------------------------
<TABLE>
<S> <C>
ASSETS
Investments at Value (Cost $558,496,736) (Note 1a) $507,254,220
Foreign Currency, at Value (Cost $9,422,793) 9,563,809
Repurchase Agreement (Cost $62,274,000) (Note 1g) 62,274,000
Cash 357
Unrealized Appreciation on Open Foreign Currency Contracts (Note 1d) 7,088
Receivable for Investments Sold 4,600,836
Dividends and Interest Receivable (Note 1c) 2,383,297
Foreign Tax Reclaim Receivable 14,302
Deferred Organization Expense (Note 1f) 5,405
Prepaid Expenses 2,601
-----------
Total Assets 586,105,915
-----------
LIABILITIES:
Payable for Investments Purchased 16,099,195
Unrealized Depreciation on Open Foreign Currency Contracts (Note 1d) 55,031
Advisory Fee Payable (Note 2a) 551,789
Financial and Fund Accounting Services Fee Payable (Note 2c) 558,002
Custody Fee Payable 790,947
Fund Services Fee Payable (Note 2d) 4,440
Administration Fee Payable (Note 2b) 2,730
Trustees' Fees and Expenses Payable (Note 2e) 1,000
Withholding Tax Payable 411,076
Accrued Expenses 58,352
-----------
Total Liabilities 18,532,562
-----------
NET ASSETS:
Applicable to Investors' Beneficial Interests $567,573,353
------------
------------
</TABLE>
See Accompanying Notes.
27
<PAGE>
THE EMERGING MARKETS EQUITY PORTFOLIO
STATEMENT OF OPERATIONS (UNAUDITED)
FOR THE SIX MONTHS ENDED APRIL 30, 1995
- --------------------------------------------------------------------------------
<TABLE>
<S> <C> <C>
INVESTMENT INCOME (NOTE 1c):
Dividends (Net of $604,948 Foreign Withholding Taxes) $ 4,228,890
Interest 1,219,776
------------
$ 5,448,666
Investment Income
EXPENSES:
Advisory Fee (Note 2a) 2,557,880
Custodian Fees and Expenses 511,576
Financial and Fund Accounting Services Fees (Note 2c) 210,077
Professional Fees 36,994
Fund Services Fee (Note 2d) 26,597
Administration Fee (Note 2b) 16,376
Trustees' Fees and Expenses (Note 2e) 7,306
Insurance Expense 4,740
Amortization of Organization Expense (Note 1f) 756
Miscellaneous 1,169
------------
Total Expenses 3,373,471
------------
2,075,195
NET INVESTMENT INCOME
NET REALIZED LOSS ON:
Investment Transactions (17,828,274)
Foreign Currency Transactions (741,338)
------------
(18,569,612)
Net Realized Loss
NET CHANGE IN UNREALIZED APPRECIATION (DEPRECIATION) OF:
Investments (105,878,306)
Foreign Currency Contracts and Translations 134,074
------------
(105,744,232)
Change in Unrealized Appreciation
-------------
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS $(122,238,649)
-------------
-------------
</TABLE>
See Accompanying Notes.
28
<PAGE>
THE EMERGING MARKETS EQUITY PORTFOLIO
STATEMENT OF CHANGES IN NET ASSETS
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
FOR THE PERIOD
FOR THE SIX NOVEMBER 15, 1993
MONTHS ENDED (COMMENCEMENT OF
APRIL 30, 1995 OPERATIONS) THROUGH
(UNAUDITED) OCTOBER 31, 1994
--------------- -------------------
<S> <C> <C>
INCREASE (DECREASE) IN NET ASSETS:
FROM OPERATIONS:
Net Investment Income $ 2,075,195 $ 2,713,099
Net Realized Gain (Loss) on Investments and Foreign Currency Transactions (18,569,612) 13,205,437
Net Change in Unrealized Appreciation of Investments and Foreign Currency
Translations (105,744,232) 54,668,581
--------------- -------------------
Net Increase (Decrease) in Net Assets Resulting from Operations (122,238,649) 70,587,117
--------------- -------------------
TRANSACTIONS IN INVESTORS' BENEFICIAL INTEREST:
Contributions 225,686,869 631,086,772
Withdrawals (83,532,227) (154,116,729)
--------------- -------------------
Net Increase from Investors' Transactions 142,154,642 476,970,043
--------------- -------------------
Total Increase in Net Assets 19,915,993 547,557,160
NET ASSETS:
Beginning of Period 547,657,360 100,200
--------------- -------------------
End of Period $ 567,573,353 $ 547,657,360
--------------- -------------------
--------------- -------------------
</TABLE>
- --------------------------------------------------------------------------------
SUPPLEMENTARY DATA:
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
FOR THE PERIOD
FOR THE SIX NOVEMBER 15, 1993
MONTHS ENDED (COMMENCEMENT OF
APRIL 30, 1995 OPERATIONS) THROUGH
(UNAUDITED) OCTOBER 31, 1994
--------------- -------------------
<S> <C> <C>
RATIOS TO AVERAGE NET ASSETS (ANNUALIZED):
Expenses 1.32% 1.36%
Net Investment Income 0.81% 0.66%
Portfolio Turnover (Not Annualized) 22.20% 23.90%
</TABLE>
See Accompanying Notes.
29
<PAGE>
THE EMERGING MARKETS EQUITY PORTFOLIO
NOTES TO FINANCIAL STATEMENTS (UNAUDITED)
APRIL 30, 1995
- --------------------------------------------------------------------------------
1. ORGANIZATION AND SIGNIFICANT ACCOUNTING POLICIES
The Emerging Markets Equity Portfolio (the "Portfolio") is registered under the
Investment Company Act of 1940, as amended, (the "Act") as a no-load,
diversified, open-end management investment company which was organized as a
trust under the laws of the State of New York on June 16, 1993. The Portfolio
commenced operations on November 15, 1993 and received a contribution of certain
assets and liabilities, including securities, with a value of $223,722,513 on
that date from the JPM Emerging Markets Equity Fund, Ltd. in exchange for a
beneficial interest in the Portfolio. The Declaration of Trust permits the
Trustees to issue an unlimited number of beneficial interests in the Portfolio.
The following is a summary of the significant accounting policies of the
Portfolio:
a)The value of each security for which readily available market quotations
exists is based on a decision as to the broadest and most representative
market for such security. The value of such security will be based either
on the last sale price on a national securities exchange, or, in the
absence of recorded sales, at the readily available closing bid price on
such exchanges, or at the quoted bid price in the over-the-counter market.
Securities listed on a foreign exchange are valued at the last quoted sale
price available before the time when net assets are valued. Unlisted
securities are valued at the average of the quoted bid and asked prices in
the over-the-counter market. Securities or other assets for which market
quotations are not readily available are valued at fair value in
accordance with procedures established by the Portfolio's Trustees. Such
procedures may include the use of independent pricing services, which use
prices based upon yields or prices of securities of comparable quality,
coupon, maturity and type; indications as to values from dealers,
operating data and general market conditions. All portfolio securities
with a remaining maturity of less than 60 days are valued by the amortized
cost method.
Trading in securities on most foreign exchanges and over-the-counter
markets is normally completed before the close of the domestic market and
may also take place on days on which the domestic market is closed. If
events materially affecting the value of foreign securities occur between
the time when the exchange on which they are traded closes and the time
when the Portfolio's net assets are calculated, such securities will be
valued at fair value in accordance with procedures established by and
under the general supervision of the Portfolio's Trustees.
b)The books and records of the Portfolio are maintained in U.S. dollars. The
market values of investment securities, other assets and liabilities and
foreign currency contracts are translated at the prevailing exchange rates
at the end of the period. Purchases, sales, income and expense are
translated at the exchange rate prevailing on the respective dates of such
transactions. Translation gains and losses resulting from changes in
foreign exchange rates during the reporting period and gains and losses
realized upon settlement of foreign currency transactions are reported in
the Statement of Operations.
Since the net assets of the Portfolio are presented at the exchange rates
and market values prevailing at the end of the period, the Portfolio does
not isolate the portion of the results of operations arising as a result
of changes in foreign exchange rates from the fluctuations arising from
changes in the market prices of securities during the period.
c)Securities transactions are recorded on a trade date basis. Dividend
income is recorded on the ex-dividend date or at the time that the
relevant ex-dividend date and amount becomes known. Interest income, which
includes the amortization of premiums and discounts, if any, is recorded
on an accrual basis. For financial and tax reporting purposes, realized
gains and losses are determined on the basis of specific lot
identification.
30
<PAGE>
THE EMERGING MARKETS EQUITY PORTFOLIO
NOTES TO FINANCIAL STATEMENTS (UNAUDITED) (CONTINUED)
APRIL 30, 1995
- --------------------------------------------------------------------------------
d)The Portfolio may enter into forward and spot foreign currency contracts
to protect securities and related receivables and payables against
fluctuations in future foreign currency rates. A forward contract is an
agreement to buy or sell currencies of different countries on a specified
future date at a specified rate. Risks associated with such contracts
include the movement in the value of the foreign currency relative to the
U.S. dollar and the ability of the counterparty to perform.
The market value of the contract will fluctuate with changes in currency
exchange rates. Contracts are valued daily based on procedures established
by and under the general supervision of the Portfolio's Trustees and the
change in the market value is recorded by the Portfolio as unrealized
appreciation or depreciation of foreign forward and spot currency contract
translations. At April 30, 1995 the Portfolio had open foreign forward and
spot currency contracts as follows:
SUMMARY OF OPEN CONTRACTS
<TABLE>
<CAPTION>
U.S. DOLLAR NET UNREALIZED
VALUE AT APPRECIATION
FOREIGN CURRENCY SALE CONTRACTS PROCEEDS 4/30/95 (DEPRECIATION)
- ------------------------------------------------------------------ ---------- ----------- ---------------
<S> <C> <C> <C>
Austrian Schilling, 2,142,000, expiring 5/2/95 $ 221,437 $ 219,828 $ 1,609
Austrian Schilling, 1,440,450, expiring 5/2/95 147,921 147,829 91
French Franc, 405,025, expiring 5/5/95 83,868 82,423 1,445
French Franc, 760,307, expiring 5/9/95 155,956 154,723 1,234
Pound Sterling, 11,625, expiring 5/11/95 18,743 18,708 35
Pound Sterling, 264,917, expiring 5/3/95 428,000 426,323 1,677
Pound Sterling, 66,567, expiring 5/4/95 107,000 107,124 (124)
Turkish Lira, 24,211,645,924, expiring 5/1/95 563,062 569,016 (5,955)
Turkish Lira, 84,746,833,989, expiring 5/2/95 1,970,857 1,991,700 (20,844)
<CAPTION>
FOREIGN CURRENCY PURCHASE CONTRACTS COST
- ------------------------------------------------------------------ ----------
<S> <C> <C> <C>
Hong Kong Dollar, 378,231, expiring 5/2/95 48,876 48,861 (16)
Indonesian Rupiah, 265,037,766, expiring 5/1/95 118,931 118,691 (240)
Indonesian Rupiah, 974,331,235, expiring 5/2/95 436,920 436,333 (587)
Indonesian Rupiah, 38,055,510, expiring 5/3/95 17,054 17,042 (11)
Indonesian Rupiah, 40,123,230, expiring 5/4/95 17,976 17,968 (8)
Malaysian Ringgit, 205,753, expiring 5/5/95 83,868 83,233 (634)
Malaysian Ringgit, 384,557, expiring 5/9/95 155,956 155,565 (391)
Malaysian Ringgit, 214,817, expiring 5/2/95 86,900 86,900 0
Malaysian Ringgit, 1,433,144, expiring 5/3/95 581,326 579,751 (1,576)
Malaysian Ringgit, 3,088,744, expiring 5/5/95 1,257,171 1,249,492 (7,679)
Malaysian Ringgit, 1,705,536, expiring 5/5/95 695,995 689,942 (6,053)
Malaysian Ringgit, 5,586,350, expiring 5/5/95 2,266,360 2,259,850 (6,509)
Malaysian Ringgit, 98,400, expiring 5/3/95 39,917 39,806 (111)
Malaysian Ringgit, 4,425,410, expiring 5/9/95 1,793,988 1,790,214 (3,774)
Malaysian Ringgit, 917,318, expiring 5/11/95 371,474 371,083 (391)
Malaysian Ringgit, 17,034, expiring 5/5/95 6,897 6,891 (6)
Malaysian Ringgit, 106,528, expiring 5/4/95 43,216 43,094 (122)
South African Rand, 1,818,106, expiring 5/2/95 501,408 502,406 997
---------------
Net Unrealized Depreciation on Foreign
Currency Contracts $ (47,943)
---------------
---------------
</TABLE>
31
<PAGE>
THE EMERGING MARKETS EQUITY PORTFOLIO
NOTES TO FINANCIAL STATEMENTS (UNAUDITED) (CONTINUED)
APRIL 30, 1995
- --------------------------------------------------------------------------------
e)The Portfolio intends to be treated as a partnership for federal income
tax purposes. As such, each investor in the Portfolio will be taxable on
its share of the Portfolio's ordinary income and capital gains. It is
intended that the Portfolio's assets will be managed in such a way that an
investor in the Portfolio will be able to satisfy the requirements of
Subchapter M of the Internal Revenue Code.
f)The Portfolio incurred organization expenses in the amount of $7,629.
These costs were deferred and are being amortized on a straight-line basis
over a five year period from the commencement of operations.
g)The Portfolio's custodian takes possession of the collateral pledged for
investments in repurchase agreements on behalf of the Portfolio. It is the
policy of the Portfolio to value the underlying collateral daily on a
market-to-market basis to determine that the value, including accrued
interest, is at least equal to the repurchase price plus accrued interest.
In the event of default of the obligation to repurchase, the Portfolio has
the right to liquidate the collateral and apply the proceeds in
satisfaction of the obligation. Under certain circumstances, in the event
of default or bankruptcy by the other party to the agreement, realization
and/or retention of the collateral or proceeds may be subject to legal
proceedings.
2. a)The Portfolio has an investment advisory agreement with Morgan Guaranty
Trust Company of New York ("Morgan"). Under the terms of the investment
advisory agreement, the Portfolio pays Morgan at an annual rate of 1.00%
of the Portfolio's average daily net assets. For the six months ended
April 30, 1995, such fees amounted to $2,557,880.
b)The Portfolio has retained Signature Broker -- Dealer Services, Inc.
("Signature") to serve as Administrator and exclusive placement agent.
Signature provides administrative services necessary for the operations of
the Portfolio, furnishes office space and facilities required for
conducting the business of the Portfolio and pays the compensation of the
Portfolio's officers affiliated with Signature. The agreement provides for
a fee to be paid to Signature at an annual fee rate determined by the
following schedule: 0.01% of the first $1 billion of the aggregate average
daily net assets of the Portfolio and the other portfolios subject to the
Administrative Services Agreement, 0.008% of the next $2 billion of such
net assets, 0.006% of the next $2 billion of such net assets, and 0.004%
of such net assets in excess of $5 billion. The daily equivalent of the
fee rate is applied to the daily net assets of the Portfolio. For the six
months ended April 30, 1995, such expenses amounted to $16,376.
c)The Portfolio has a Financial and Fund Accounting Services Agreement
("Services Agreement") with Morgan under which Morgan receives a fee,
based on the percentages described below, for assisting in certain aspects
of the administration and operation of the Portfolio. The services
agreement is also designed to provide an expense limit for certain
expenses of the Portfolio. If total expenses of the Portfolio, excluding
the advisory fee, custody expenses, fund services fee, brokerage costs,
and the amortization of organization expenses exceed the expense limit of
0.15% of the Portfolio's average daily net assets up to $200 million,
0.10% of the next $200 million of average daily net assets, 0.05% of the
next $200 million of average daily net assets and 0.03% of average daily
net assets thereafter, Morgan will reimburse the Portfolio for the excess
expense amount and
32
<PAGE>
THE EMERGING MARKETS EQUITY PORTFOLIO
NOTES TO FINANCIAL STATEMENTS (UNAUDITED) (CONTINUED)
APRIL 30, 1995
- --------------------------------------------------------------------------------
receive no fee. Should such expenses be less than the expense limit,
Morgan's fee would be limited to the difference between such expenses and
the fee calculated under the Services Agreement. For the six months ended
April 30, 1995, this fee amounted to $210,077.
d)The Portfolio has a Fund Services Agreement with Pierpont Group, Inc.
("Group") to assist the Trustees in exercising their overall supervisory
responsibilities for the Portfolio's affairs. The Trustees of the
Portfolio represent all the existing shareholders of Group. The
Portfolio's allocated portion of Group's fee for its reasonable costs in
performing its services amounted to $26,597 for the six months ended April
30, 1995.
e)An aggregate annual fee of $65,000 is paid to each Trustee for serving as
a Trustee of the Pierpont Funds, the JPM Institutional Funds and their
corresponding Portfolios. The Trustees' Fees and Expenses shown in the
financial statements represents the Portfolio's allocated portion of the
total fees and expenses. Prior to April 1, 1995, the aggregate annual
Trustee Fee was $55,000. The Trustee who serves as Chairman and Chief
Executive Officer of these Funds and Portfolios also serves as Chairman of
Group and received compensation and employee benefits from Group in his
role as Group's Chairman. The allocated portion of such compensation and
benefits included in the Fund Services Fee shown in the financial
statements was $3,100.
3. INVESTMENT TRANSACTIONS:
Investment transactions (excluding short-term investments) for the six
months ended April 30, 1995 were as follows:
<TABLE>
<CAPTION>
COST OF PROCEEDS FROM
PURCHASES SALES
- -------------- --------------
<S> <C>
$ 232,729,323 $ 109,808,768
- -------------- --------------
</TABLE>
4. RESTRICTED SECURITIES:
<TABLE>
<CAPTION>
UNITS DATE ACQUIRED U.S. $ COST
---------- --------------- ------------
<S> <C> <C> <C>
New Century Holdings, Ltd.:
Partnership III 1,800 4/11/94 $ 1,800,000
Partnership IV 2,000 6/16/94 $ 2,000,000
Partnership V 3,800 11/9/94 $ 3,800,000
</TABLE>
The securities shown above are restricted as to sale and have been valued at
fair value in accordance with the procedures decribed in Note 1a. The value of
these securities at April 30, 1995 is $8,206,600, representing 1.5% of net
assets.
33
