<PAGE>
Investment Advisors
United States Trust Company of New York
114 West 47th Street
New York, NY 10036
United States Trust Company of the
Pacific Northwest
4380 Southwest Macadam Avenue
Suite 450
Portland, OR 97201
Transfer Agent
Chase Global Funds Services Company
73 Tremont Street
Boston, MA 02108
(800) 909-1989
Distributor
Edgewood Services, Inc.
Clearing Operations
P.O. Box 897
Pittsburgh, PA 15230
SHARES OF THE FUNDS ARE NOT DEPOSITS OR OBLIGATIONS OF, OR GUARANTEED OR
ENDORSED BY, ANY BANK, AND THE SHARES ARE NOT FEDERALLY INSURED BY THE FEDERAL
DEPOSIT INSURANCE CORPORATION, BANK INSURANCE FUND, FEDERAL RESERVE BOARD, OR
ANY OTHER GOVERNMENTAL AGENCY. AN INVESTMENT IN A FUND IS SUBJECT TO RISK OF
PRINCIPAL.
US EXIT A97
[GRAPHIC OMITTED]
EQUITY FUND
INCOME FUND
TOTAL RETURN BOND FUND
BALANCED FUND
INTERNATIONAL EQUITY FUND
OPTIMUM GROWTH FUND
VALUE EQUITY FUND
Annual Report
March 31, 1997
<PAGE>
LETTER TO SHAREHOLDERS
- --------------------------------------------------------------------------------
Dear Shareholder:
I am pleased to present to you the annual report for Excelsior
Institutional Trust. The 1997 fiscal year was another year of growth for the
fund complex, highlighted by strong financial markets and new fund offerings
which helped push the assets of the funds over the $5 billion milestone.
In our on-going efforts to provide you with investment opportunities that
are best suited to meet your investment needs in the ever-evolving financial
marketplace, we continually evaluate the current Excelsior fund offerings. In
the coming year, we may make recommendations to you which we believe can
achieve this goal. These recommendations may include, among other things, the
establishment of new funds and possibly the consolidation of certain equity
funds. We will keep you apprised of these developments as our assessment of
these matters progresses.
The coming year promises to be both interesting and exciting. We are
cautiously optimistic regarding the domestic equity markets, international
equity markets continue to look attractive, and fiscal policy has been
effective in keeping inflation under control. With this in mind, I am confident
that the Excelsior fund family will continue to provide you with the
appropriate investment vehicles and dedicated service staff to help you meet
your investment objectives.
Sincerely,
/s/ Frederick S. Wonham
-----------------------------------
Frederick S. Wonham
Chairman of the Board and President
<PAGE>
EXCELSIOR INSTITUTIONAL TRUST
ADVISERS MARKET REVIEW
- --------------------------------------------------------------------------------
The stock market momentum decreased for the ten month period ended March
31, 1997 relative to the pace of 1995-1996. However, the return from the
Standard & Poor's 500 Composite Stock Price Index ("S&P 500") was still a
strong 15.1%(1). Some of the factors that resulted in this return included the
continuing benign economic environment, the moderate interest rate environment,
and the continuing heavy mutual fund flows.
While the S&P 500, dominated by large companies posted a double digit
return, the smaller capitalization companies did not fare as well. For the same
ten month period, the Wilshire 4500 Equity Index, which includes more small cap
companies, returned (1.8%)(2) and the Russell 2000 Index, a widely accepted
measure of small cap performance, fell 4.0%(3). Factors affecting small cap
performance are varied and include interest rate movements, earnings power
relative to large companies, and importantly, the supply of small companies
coming to market with initial public offerings. The IPO market has been
extremely active, giving investors wide choices in the small stock areas.
The bond market earned somewhat less than its coupon during the ten
months, with the Lehman Brothers Aggregate Bond Index returning 5.7%(4). Long
term rates rose during the period due to inflation fears, but not enought to
offset the income stream from bonds.
The international markets in fact once again did not perform near
historical averages. The return from the FT/S&P-Actuaries World Indices was
only 0.2%(5) during the ten months ending March 31, 1997. Largely due to the
poor performances of the Japanese market, which makes up about a third of this
index, international equities as measured by the indices have not performed as
well as the S&P 500 for the past several years. However, this asset class
continues to attract funds both from individuals and plan sponsers due to its
diversification benefits.
- ------------
(1) Source: Standard & Poor's Corporation -- Reflects the reinvestment of
income dividends and, where applicable, capital gain distributions. The
Standard & Poor's 500 Composite Stock Price Index is a widely accepted
unmanaged index of U.S. stock market performance.
(2) Source: Wilshire Associates Incorporated -- The Wilshire 4500 Equity Index
is a widely accepted, unmanaged index of domestic stock market performance
and is composed of 4,500 stocks in the Wilshire 5000 Equity Index (it
excludes the 500 stocks in the S&P 500). The Wilshire 5000 Equity Index
measures the performance of all U.S. headquartered equity securities with
readily available price data. Approximately 6,500 capitalization weighted
security returns are used to adjust the Index. The Index includes
dividends reinvested.
(3) Source: The Russell Company -- Russell 2000 Index is an unmanaged index and
is composed of the 2,000 smallest companies in the Russell 3000 Index. The
Russell 3000 Index is composed of 3,000 of the largest U.S. companies by
market capitalization. The Index includes dividends reinvested.
(4) Source: Lehman Brothers -- Lehman Brothers Aggregate Index is an unmanaged
total return performance benchmark commonly used to measure bond
performance. The Index is make up of Lehman's Govt./Corp. Bond Index,
Mortgage-Backed Securities Index and Asset-Based Securities Index which
are comprised of U.S. Government agencies and U.S. Treasury securities,
investment grade corporate debt, mortgage-backed and asset-backed
securities, selected as representative of the market.
(5) Source: Goldman Sachs -- The FT/S&P-Actuaries World Indices -- World
Excluding U.S. Index is a widely accepted, unmanaged index of global stock
market performance, including Canada, Mexico, Europe, Australia, New
Zealand, South Africa and the Far East. The Index includes dividends
reinvested.
<PAGE>
EXCELSIOR INSTITUTIONAL TRUST
ADVISER'S INVESTMENT REVIEW
EQUITY FUND
- --------------------------------------------------------------------------------
For the ten months ended March 31, 1997++, the Fund realized a total
return of 10.22%*, versus 15.10%** for the Standard & Poor's 500 Composite
Stock Price Index ("S&P 500"). In the early months of the period, we continued
our restructuring efforts, reducing the number of individual stocks in the
portfolio and increasing the Fund's average market capitalization.
Specifically, this involved 1) selling many of the Fund's mid-cap holdings, and
2) adding high-quality growth stocks to the Fund. For most of the period this
strategy worked well as performance was driven by several of the Fund's large-
capitalization technology, financial services (despite the upward drift in
interest rates in the period), consumer, and capital goods companies. A number
of the transaction value stocks within the portfolio, where we believe private
market value materially exceeds their stock price, did not participate in the
general advance. The Fund lost ground in the final months of the period. The
strong performance of a relatively narrow group of the largest stock within the
S&P 500 universe accounted for much of the difference. The Fund includes a
blend of some mid-size companies in addition to many large companies. Still,
during the final months, strength was seen in many of the portfolio's financial
stocks, some of the larger technology stock, and selected consumer stocks.
Equity Fund
S&P 500 Equity Fund
------- -----------
01/16/95 $10,000 $10,000
03/31/95 $10,970 $10,507
09/30/95 $12,970 $11,946
03/31/96 $14,490 $12,388
09/30/96 $15,610 $13,403
03/31/97 $17,360 $14,294
PAST PERFORMANCE IS NOT PREDICTIVE OF FUTURE PERFORMANCE. INVESTMENT RETURNS
AND PRINCIPAL VALUES WILL VARY AND SHARES MAY BE WORTH MORE OR LESS AT
REDEMPTION THAN THEIR ORIGINAL COST.
The above illustration compares a $10,000 investment made in Equity Fund
and a broad-based index since 1/16/95 (inception date). For comparative
purposes, the value of the index on 12/31/94 is used as the beginning value on
1/16/95. All dividends and capital gain distributions are reinvested. The
Fund's performance takes into account fees and expenses. The index does not
take into account charges, fees and other expenses. Further information
relating to Fund performance is contained in the Financial Highlights section
of the Prospectus and elsewhere in this report.
- --------
* Total return represents the change during the period in a hypothetical
account with dividends reinvested.
** Source: Standard & Poor's Corporation--Reflects the reinvestment of income
dividends and, where applicable, capital gain distributions. The Standard &
Poor's 500 Composite Stock Price Index is a widely accepted unmanaged index
of U.S. stock market performance.
+ The Fund is currently waiving certain fees. Had the Fund not waived fees,
returns would have been lower. This voluntary waiver may be modified or
terminated at any time.
++ The Fund changed its fiscal year end from May 31 to March 31.
<PAGE>
EXCELSIOR INSTITUTIONAL TRUST
ADVISER'S INVESTMENT REVIEW
INCOME FUND
- --------------------------------------------------------------------------------
Fiscal 1997 proved to be a difficult period in the taxable fixed-income
markets. During the period, interest rates rose with yields up for both shorter
and longer term maturities. Better-than-expected economic growth, lower
unemployment, and high capacity utilization all contributed to fears of higher
inflation that would cause the Federal Reserve to tighten policy. Corporate
bonds, which came to offer historically low yield pickups to Treasuries,
outperformed during the ten-month period. As a result, our portfolio strategy
during this period involved 1) shifting away from corporate issues, given their
poor risk/reward ratio; and 2) moving to a slightly increased position in both
mortgage-backed securities and Treasuries. At fiscal year end, mortgage-backed
securities represented approximately 35% of the portfolio and were positioned
in current-coupon pass-throughs and seasoned fifteen-year securities. This
strategy produced a total return of 5.39%* for the ten months ended March 31,
1997++.
Income Fund
Lehman Bro
Int Govt/Corp
Bond Index Income Fund
------------- -----------
01/16/95 $10,000 $10,000
03/31/95 $10,440 $10,301
09/30/95 $11,140 $11,016
03/31/96 $11,440 $11,232
09/30/96 $11,710 $11,406
03/31/97 $11,990 $11,691
PAST PERFORMANCE IS NOT PREDICTIVE OF FUTURE PERFORMANCE. INVESTMENT RETURNS
AND PRINCIPAL VALUES WILL VARY AND SHARES MAY BE WORTH MORE OR LESS AT
REDEMPTION THAN THEIR ORIGINAL COST.
The above illustration compares a $10,000 investment made in Income Fund
and a broad-based index since 1/16/95 (inception date). For comparative
purposes, the value of the index on 12/31/94 is used as the beginning value on
1/16/95. All dividends and capital gain distributions are reinvested.
The Fund's performance takes into account fees and expenses. The index
does not take into account charges, fees and other expenses. Further
information relating to Fund performance is contained in the Financial
Highlights section of the Prospectus and elsewhere in this report.
- --------
* Total return represents the change during the period in a hypothetical
account with dividends reinvested.
** Source: Lehman Brothers -- Lehman Brothers Intermediate Govt/Corp Bond Index
is an unmanaged total return performance benchmark comprised of U.S.
Government agencies and U.S. Treasury securities and investment grade
corporate debt, selected as representative of the market with maturities of
one to ten years.
+ The Fund is currently waiving certain fees. Had the Fund not waived fees,
returns would have been lower. This voluntary waiver may be modified or
terminated at any time.
++ The Fund changed its fiscal year end from May 31 to March 31.
<PAGE>
EXCELSIOR INSTITUTIONAL TRUST
ADVISER'S INVESTMENT REVIEW
TOTAL RETURN BOND FUND
- --------------------------------------------------------------------------------
During the period, interest rates rose with yields up for both shorter and
longer term maturities. Stronger-than-anticipated economic growth during this
ten-month period, a lower unemployment rate, and a high capacity utilization
rate all contributed to fears of higher inflation that would cause the Federal
Reserve to tighten policy. All in all, Fiscal 1997 proved a challenging period
for the taxable fixed-income markets. Corporate bonds, which came to offer
historically low yield pickups to Treasuries, outperformed during the fiscal
period. Responding to these market conditions, the Fund's portfolio strategy
emphasized 1) a shifting away from corporates -- given their unattractive
risk/reward characteristics; and 2) moving to a slightly increased position in
both mortgage-backed securities (which represented approximately 8% of the
Fund's holdings as of fiscal year end) and Treasuries. This strategy produced a
total return of 5.29%* for the ten months ended March 31, 1997++.
Total Return Bond Fund
Lehman Bro
Govt/Corp Total Return
Bond Index Bond Fund
------------- -----------
01/19/95 $10,000 $10,000
03/31/95 $10,500 $10,320
09/30/95 $11,390 $11,224
03/31/96 $11,650 $11,515
09/30/96 $11,910 $11,769
03/31/97 $12,160 $12,002
PAST PERFORMANCE IS NOT PREDICTIVE OF FUTURE PERFORMANCE. INVESTMENT RETURNS
AND PRINCIPAL VALUES WILL VARY AND SHARES MAY BE WORTH MORE OR LESS AT
REDEMPTION THAN THEIR ORIGINAL COST.
The above illustration compares a $10,000 investment made in Total Return
Bond Fund and a broad-based index since 1/19/95 (inception date). For
comparative purposes, the value of the index on 12/31/94 is used as the
beginning value on 1/19/95. All dividends and capital gain distributions are
reinvested.
The Fund's performance takes into account fees and expenses. The index
does not take into account charges, fees and other expenses. Further
information relating to Fund performance is contained in the Financial
Highlights section of the Prospectus and elsewhere in this report.
- --------
* Total return represents the change during the period in a hypothetical
account with dividends reinvested.
** Source: Lehman Brothers -- Lehman Brothers Govt/Corp Bond Index is an
unmanaged total return performance benchmark comprised of U.S. Government
agencies and U.S. Treasury securities and investment grade corporate debt,
selected as representative of the market.
+ The Fund is currently waiving certain fees. Had the Fund not waived fees,
returns would have been lower. This voluntary waiver may be modified or
terminated at any time.
++ The Fund changed its fiscal year end from May 31 to March 31.
<PAGE>
EXCELSIOR INSTITUTIONAL TRUST
ADVISER'S INVESTMENT REVIEW
BALANCED FUND
- --------------------------------------------------------------------------------
The Fund generated a total return of 8.20%* for the ten months ended March
31, 1997++, compared to 15.10%** for the Standard & Poor's 500 Composite Stock
Price Index and 5.71%*** for the Lehman Brothers Aggregate Bond Index for the
same time period. The Fund has emphasized equities over bonds for more than a
year now. This asset allocation has benefited investors in this Fund as the
equity markets have performed better than the fixed income markets over the
period. This equity performance within the Fund reflected the relatively strong
stock market during the period. The bond portion of the portfolio reflected the
positive return from bonds despite the slight rise in interest rates. The
subadvisor's style is to seek value in both equity selection and bond sector
selection.
Balanced Fund
Lehman Bro
Aggr Index S&P 500 Balanced Fund
------------- -------- ------------
07/11/94 $10,000 $10,000 $10,000
09/30/94 $10,060 $10,490 $10,200
03/31/95 $10,610 $11,500 $10,819
09/30/95 $11,480 $13,600 $12,101
03/31/96 $11,750 $15,200 $12,930
09/30/96 $12,040 $16,360 $13,377
03/31/97 $12,330 $18,200 $14,267
PAST PERFORMANCE IS NOT PREDICTIVE OF FUTURE PERFORMANCE. INVESTMENT RETURNS
AND PRINCIPAL VALUES WILL VARY AND SHARES MAY BE WORTH MORE OR LESS AT
REDEMPTION THAN THEIR ORIGINAL COST.
The above illustration compares a $10,000 investment made in Balanced Fund
and two broad-based indices since 7/11/94 (inception date). For comparative
purposes, the value of the indices on 6/30/94 is used as the beginning value on
7/11/94. All dividends and capital gain distributions are reinvested. The
Fund's performance takes into account fees and expenses. The indices do not
take into account charges, fees and other expenses. Further information
relating to Fund performance is contained in the Financial Highlights section
of the Prospectus and elsewhere in this report.
- --------
* Total return represents the change during the period in a hypothetical
account with dividends reinvested.
** Source: Standard & Poor's Corporation--Reflects the reinvestment of income
dividends and, where applicable, capital gain distributions. The Standard &
Poor's 500 Composite Stock Price Index is a widely accepted unmanaged index
of U.S. stock market performance.
*** Source: Lehman Brothers--Lehman Brothers Aggregate Bond Index is an
unmanaged total return performance benchmark commonly used to measure bond
performance. The Index is made up of Lehman's Govt/Corp bond Index,
Mortgage-Backed Securities Index and Asset-Backed Securities Index which
are comprised of U.S. Government agencies and U.S. Treasury securities,
investment grade cororate debt, mortgage-backed and asset-backed
securities, selected as representative of the market.
+ The Fund is currently waiving certain fees. Had the Fund not waived fees,
returns would have been lower. This voluntary waiver may be modified or
terminated at any time.
++ The Fund changed its fiscal year end from May 31 to March 31.
<PAGE>
EXCELSIOR INSTITUTIONAL TRUST
ADVISER'S INVESTMENT REVIEW
VALUE EQUITY FUND
- --------------------------------------------------------------------------------
For the period June 1, 1996 (commencement of operations) to March 31, 1997
the Fund achieved a cumulative total return of 13.91%* as compared to 15.10%**
for the Standard & Poor's 500 Composite Stock Price Index for the same period.
The goal of the Fund is long-term capital appreciation with a focus on value.
Over time, we believe that a disciplined search for fundamental value will
achieve better results than attempting to take advantage of short-term price
movements. Initially, we structured the Fund with an emphasis on
larger-capitalization companies. Within this, we focused on the energy,
aerospace, and technology areas. In keeping with the Fund's goal, the
price/earnings and price/book ratios were kept low in relative terms, and
portfolio turnover remained low as well. As the year progressed, we began to
shift the Fund away from areas of momentum with the addition of several of what
we regarded as highly undervalued small-capitalization early life cycle
companies. For most of the period, the Fund's structure worked well, given,
then-current areas of market favor. Conditions for the overall market and the
Fund grew increasingly challenging during the final months of the period,
however, as the energy sector gave up some of its earlier gains and technology
grew mixed. The Fund's financial holdings held up reasonably well. The major
factor restraining performance in this period was the Fund's early life cycle
smaller-capitalization holdings; nevertheless, we continue to believe in the
long-term prospects for these companies. We don't anticipate any major changes
to the Fund's structure and essential strategy going forward.
Value Equity Fund
Value
S&P 500 Equity Fund
------- -----------
06/01/96 $10,000 $10,000
06/30/96 $10,040 $9,830
07/31/96 $9,590 $9,470
08/31/96 $9,800 $9,840
09/30/96 $10,350 $10,261
10/31/96 $10,630 $10,452
11/30/96 $11,440 $11,494
12/31/96 $11,580 $11,572
01/31/97 $11,910 $12,125
02/28/97 $12,000 $11,823
03/31/97 $11,510 $11,391
PAST PERFORMANCE IS NOT PREDICTIVE OF FUTURE PERFORMANCE. INVESTMENT RETURNS
AND PRINCIPAL VALUES WILL VARY AND SHARES MAY BE WORTH MORE OR LESS AT
REDEMPTION THAN THEIR ORIGINAL COST.
The above illustration compares a $10,000 investment made in Value Equity
Fund and a broad-based index since 6/1/96 (inception date). All dividends and
capital gain distributions are reinvested. The Fund's performance takes into
account fees and expenses. The index does not take into account charges, fees
and other expenses. Further information relating to Fund performance is
contained in the Financial Highlights section of the Prospectus and elsewhere in
this report.
The graph presents the performance of the Value Equity Fund's
Institutional shares which have been in existence since the Fund's inception.
The performance of the Value Equity Fund's Trust shares will differ based upon
the different inception date and higher fees assessed to that class.
- --------
* Total return represents the change during the period in a hypothetical
account with dividends reinvested.
** Source: Standard & Poor's Corporation--Reflects the reinvestment of income
dividends and, where applicable, capital gain distributions. The Standard &
Poor's 500 Composite Stock Price Index is a widely accepted unmanaged index
of U.S. stock market performance.
+ The Fund is currently waiving certain fees. Had the Fund not waived fees,
returns would have been lower. This voluntary waiver may be modified or
terminated at any time.
<PAGE>
EXCELSIOR INSTITUTIONAL TRUST
ADVISER'S INVESTMENT REVIEW
INTERNATIONAL EQUITY FUND
- --------------------------------------------------------------------------------
The Fund generated a total return of 2.41%* for the ten months ended March
31, 1997++, compared to 0.20%** for the FT/S&P -- Actuaries World Indices --
World Excluding U.S. Index and 15.10%*** for the Standard & Poor's 500
Composite Stock Price Index for the same time period. The Fund's underweighting
in Japan, which has been a very poorly performing market over the last few
years, had a positive impact on performance. The FTA Index is heavily weighted
in Japan, and active managers who avoided this market have tended to perform
better than the broad international indices. The Fund also benefited from the
subadvisor's good stock selection. In terms of geographical diversification,
the Fund ended the period 50% invested in Europe, 23% invested in Southeast
Asia, 12% invested in Japan and 15% invested in Latin America, North America,
Africa, and money market instruments. The subadvisor's style is to seek, large,
growing companies that operate internationally and sell at reasonable prices.
The stocks selected tend to be large companies. The subadvisor makes selections
without regard to country allocation.
International Equity Fund
FT-Actuaries International
World Indices Equity Fund
------------- -----------
01/24/95 $10,000 $10,000
03/31/95 $10,090 $10,386
09/30/95 $10,600 $11,471
03/31/96 $11,370 $12,787
09/30/96 $11,600 $13,254
03/31/97 $11,570 $13,440
PAST PERFORMANCE IS NOT PREDICTIVE OF FUTURE PERFORMANCE. INVESTMENT RETURNS
AND PRINCIPAL VALUES WILL VARY AND SHARES MAY BE WORTH MORE OR LESS AT
REDEMPTION THAN THEIR ORIGINAL COST.
INTERNATIONAL INVESTING IS SUBJECT TO SPECIAL RISKS SUCH AS CURRENCY
FLUCTUATIONS AND DIFFERENCES IN ACCOUNTING AND TAXATION STANDARDS.
The above illustration compares a $10,000 investment made in International
Equity Fund and a broad-based index since 1/24/95 (inception date). For
comparative purposes, the value of the index on 12/31/94 is used as the
beginning value on 1/24/95. All dividends and capital gain distributions are
reinvested. The Fund's performance takes into account fees and expenses. The
index does not take into account charges, fees and other expenses. Further
information relating to Fund performance is contained in the Financial
Highlights section of the Prospectus and elsewhere in this report.
- --------
* Total return represents the change during the period in a hypothetical
account with dividends reinvested.
** Source: Goldman Sachs--The FT/S&P-Actuaries World Indices--World Excluding
U.S. Index is a widely accepted, unmanaged index of global stock market
performance, including Canada, Mexico, Europe, Australia, New Zealand,
Sotuh Africa and the Far East. The Index includes dividends reinvested.
*** Source: Standard & Poor's Corporation--Reflects the reinvestment of income
dividends and, where applicable, capital gain distributions. The Standard
& Poor's 500 Composite Stock Price Index is a widely accepted unmanaged
index of U.S. stock market performance.
+ The Fund is currently waiving certain fees. Had the Fund not waived fees,
returns would have been lower. This voluntary waiver may be modified or
terminated at any time.
++ The Fund changed its fiscal year end from May 31 to March 31.
<PAGE>
EXCELSIOR INSTITUTIONAL TRUST
ADVISER'S INVESTMENT REVIEW
OPTIMUM GROWTH FUND
- --------------------------------------------------------------------------------
For the period June 1, 1996 (inception date) to March 31, 1997 the Fund
achieved cumulative total return of 2.23%* as compared to 15.10%** for the
Standard & Poor's 500 Composite Stock Price Index for the same period. The
Fund's goal is risk-adjusted total return through capital appreciation by
investing in high-quality large-capitalization companies which we believe have
superior growth potential. These investments are complemented with a structured
overlay designed to increase diversification and reduce market volatility
without materially inhibiting return. From its inception and through the summer
months, the core portion of the Fund underperformed the market due to weakness
in the technology sector, specifically in networking stocks. Poor performance
in the health care sector also contributed to the weakness. The structured
overlay portion was successful in reducing the volatility of the Fund during
the down months, but did not materially inhibit return on the upside. Midway
during this period, strong performance from the Fund's large-capitalization
financial stocks was offset by a lackluster quarter for the Fund's
networking/connectivity stocks. Again, the overlay performed well and dampened
the volatility of the core portfolio. Performance in the final months of the
period was hampered once again by weakness in the networking equipment sector
and volatile market conditions due to interest rate concerns. We made no
substantive changes to our investment strategy during these months. Despite
recent interest-rate concerns, we continued -- and continue -- to believe that
the outlook for non-inflationary global growth remains strong and that superior
long-term returns will be generated by investing in high-quality growth
companies.
Optimum Growth Fund
Optimum
S&P 500 Growth Fund
------- -----------
06/01/96 $10,000 $10,000
06/30/96 $10,040 $9,860
07/31/96 $9,590 $9,180
08/31/96 $9,800 $9,220
09/30/96 $10,350 $10,004
10/31/96 $10,630 $10,014
11/30/96 $11,440 $10,685
12/31/96 $11,580 $10,424
01/31/97 $11,910 $11,116
02/28/97 $12,000 $10,906
03/31/97 $11,510 $10,223
PAST PERFORMANCE IS NOT PREDICTIVE OF FUTURE PERFORMANCE. INVESTMENT RETURNS
AND PRINCIPAL VALUES WILL VARY AND SHARES MAY BE WORTH MORE OR LESS AT
REDEMPTION THAN THEIR ORIGINAL COST.
The above illustration compares a $10,000 investment made in Optimum
Growth Fund and a broad-based index since 6/1/96 (inception date). All
dividends and capital gain distributions are reinvested. The Fund's performance
takes into account fees and expenses. The index does not take into account
charges, fees and other expenses. Further information relating to Fund
performance is contained in the Financial Highlights section of the Prospectus
and elsewhere in this report.
The graph presents the performance of the Optimum Growth Fund's
Institutional shares which have been in existence since the Fund's inception.
The performance of the Optimum Growth Fund's Trust shares will differ based
upon the different inception date and higher fees assessed to that class.
- --------
* Total return represents the change during the period in a hypothetical
account with dividends reinvested.
** Source: Standard & Poor's Corporation--Reflects the reinvestment of income
dividends and, where applicable, capital gain distributions. The Standard &
Poor's 500 Composite Stock Price Index is a widely accepted unmanaged index
of U.S. stock market performance.
+ The Fund is currently waiving certain fees. Had the Fund not waived fees,
returns would have been lower. This voluntary waiver may be modified or
terminated at any time.
<PAGE>
Excelsior Institutional Trust
Schedule of Investments
March 31, 1997
Equity Fund
Shares Value
------ -----
COMMON STOCKS--99.46%
CONSUMER STAPLES -- 27.70%
40,251 Columbia/HCA Healthcare Corp. $ 1,353,440
40,021 CPC International, Inc. ............ 3,281,722
92,487 Dial Corp. ........................ 1,491,353
37,144 Eastman Kodak Co. .................. 2,818,301
20,535 Gillette Co. ........................ 1,491,354
81,214 Johnson & Johnson .................. 4,294,190
105,311 Mattel, Inc. ........................ 2,527,464
97,248 PepsiCo, Inc. ..................... 3,172,716
29,388 Pfizer, Inc. ........................ 2,472,265
32,382 Procter & Gamble Co. ............... 3,723,930
46,812 Schering-Plough Corp. ............... 3,405,573
92,177 Viad Corp. ........................ 1,474,832
54,689 Whitman Corp. ..................... 1,339,881
----------
32,847,021
----------
CAPITAL GOODS -- 16.59%
36,426 General Electric Co. ............... 3,615,280
58,651 Honeywell, Inc. ..................... 3,980,937
46,343 Illinois Tool Works, Inc. ............ 3,782,747
42,911 Raychem Corp. ........................ 3,534,794
85,116 +Thermo Electron Corp. ............... 2,627,957
119,631 Westinghouse Electric Corp. ......... 2,123,450
----------
19,665,165
----------
FINANCIAL -- 15.41%
23,367 American International Group, Inc. ... 2,742,701
55,876 Barnett Banks of Florida, Inc. ...... 2,598,234
22,115 Citicorp ........................... 2,393,949
36,003 Household International, Inc. ...... 3,100,758
30,897 Mellon Bank Corp. .................. 2,247,757
50,485 Morgan Stanley Group, Inc. ......... 2,965,994
48,124 Norwest Corp. ..................... 2,225,735
----------
18,275,128
----------
TECHNOLOGY -- 14.78%
57,812 +Cisco Systems, Inc. ............... 2,782,203
54,858 Hewlett Packard Co. .................. 2,921,189
30,699 Intel Corp. ........................ 4,267,161
40,935 +Microsoft Corp. ..................... 3,750,669
82,147 +Oracle Corp. ........................ 3,162,660
18,815 Ericsson LM ADR ..................... 635,006
----------
17,518,888
----------
<PAGE>
Shares Value
------ -----
COMMON STOCKS--(continued)
ENERGY -- 8.75%
16,352 British Petroleum Co. ADR ......... $ 2,244,312
29,833 Louisiana Land & Exploration Co. 1,413,338
24,601 Mobil Corp. ........................ 3,213,506
20,008 Royal Dutch Petroleum Co. ............ 3,501,400
------------
10,372,556
------------
CONSUMER CYCLICAL -- 7.08%
47,738 McDonald's Corp. ..................... 2,255,620
89,210 Stewart Enterprises, Inc., Class A . 3,233,863
67,228 Time Warner, Inc. .................. 2,907,611
------------
8,397,094
------------
RAW/INTERMEDIATE MATERIALS -- 6.53%
27,490 Monsanto Co. ........................ 1,051,492
21,047 Nucor Corp. ........................ 962,900
32,387 Pioneer Hi-Bred International,
Inc. .............................. 2,036,333
63,925 +Steel Dynamics, Inc. ............... 1,118,688
134,472 Worthington Industries, Inc. ......... 2,571,777
------------
7,741,190
------------
UTILITIES -- 2.62%
141,957 +WorldCom, Inc. ..................... 3,105,309
------------
TOTAL COMMON STOCKS
(Cost $108,982,133) .................. 117,922,351
------------
Principal
Amount
- ----------------------
DEMAND NOTES -- 0.56%
$667,000 General Electric Co. Promissory
Notes (Cost $667,000) ............... 667,000
------------
TOTAL INVESTMENTS
(Cost $109,649,133) ...... 100.02% $118,589,351
OTHER ASSETS AND
LIABILITIES (NET) ...... (0.02) (27,340)
-------- -------------
NET ASSETS ............... 100.00% $118,562,011
======== =============
- ------------
+ Non-income producing security.
ADR -- American Depositary Receipt.
See Notes to Financial Statements.
<PAGE>
Excelsior Institutional Trust
Schedule of Investments
March 31, 1997
Income Fund
Principal Coupon Maturity
Amount Rate Date Value
- ------------ -------- ---------- -----------
U.S. GOVERNMENT & AGENCY
OBLIGATIONS -- 82.35%
Federal Home Loan
Mortgage Corporation
$ 25,730 Pool #220001 ............ 10.75% 7/01/00 $ 27,139
3,301,044 Pool #G00269 ............ 8.50 3/01/23 3,431,501
Federal National
Mortgage Association
1,537,287 Pool #190748 ............ 5.50 4/01/01 1,446,010
3,704,207 Pool #303859 ............ 7.50 3/01/11 3,706,522
3,730,826 Pool #316972 ............ 7.50 7/01/25 3,659,735
Government National
Mortgage Association
3,875,315 Pool #387082 ............ 8.00 10/15/25 3,893,482
2,822,136 Pool #439024 ............ 7.50 11/15/26 2,764,833
1,596,392 Small Business
Administration,
Series 1992-D ......... 8.20 4/01/12 1,682,198
1,250,000 Tennessee Valley
Authority, Put
Bond .................. 5.98 4/01/36 1,259,929
1,000,000 U.S. Treasury
Bonds .................. 9.38 2/15/06 1,159,375
3,000,000 U.S. Treasury
Bonds .................. 7.25 5/15/16 3,010,314
2,784,000 U.S. Treasury
Bonds .................. 6.25 8/15/23 2,464,711
6,200,000 U.S. Treasury Notes 5.25 1/31/01 5,907,441
4,000,000 U.S. Treasury Notes 5.88 2/15/04 3,782,500
2,600,000 U.S. Treasury Notes 6.50 5/15/05 2,529,314
1,440,000 U.S. Treasury Notes 5.88 11/15/05 1,340,551
-----------
TOTAL U.S. GOVERNMENT &
AGENCY OBLIGATIONS
(Cost $42,864,559) ..............................42,065,555
-----------
CORPORATE BONDS -- 9.69%
750,000 Caterpillar, Inc. ...... 9.38 7/15/01 810,971
1,500,000 Coca Cola
Enterprises, Inc. ...... 7.00 10/01/26 1,484,673
1,200,000 Korea Electric
Power .................. 6.00 12/01/26 1,152,832
1,500,000 WMX Technologies,
Inc. .................. 7.10 8/01/26 1,502,811
-----------
TOTAL CORPORATE BONDS
(Cost $5,070,211) .............................. 4,951,287
-----------
<PAGE>
Principal
Amount Value
- ------------------------------- ------------
REPURCHASE AGREEMENT -- 2.83%
$1,443,296 Agreement with
Dilllon Read & Co.,
6.25%, dated 3/31/97,
due 4/01/97,
to be repurchased at
$1,443,547,
collateralized by
$261,479 U.S.
Treasury Notes,
7.50%, due
11/15/16, valued at
$277,202,
$210,870 U.S.
Treasury Notes,
8.75%,
due 11/15/08, valued
at $237,053,
and $988,226 U.S.
Treasury Bills, due
10/16/97, valued at
$958,782
(Cost $1,443,296) $ 1,443,296
-----------
Shares
----------
OTHER SHORT-TERM INVESTMENTS --- 4.29%
1,164,350 Dreyfus Government
Cash Management Fund 1,164,350
1,028,259 Fidelity U.S.
Treasury II
Fund ............ 1,028,259
-----------
TOTAL OTHER SHORT-
TERM INVESTMENTS
(Cost $2,192,609)... 2,192,609
-----------
TOTAL INVESTMENTS
(Cost $51,570,675)........................ 99.16% $50,652,747
OTHER ASSETS AND
LIABILITIES (NET) ........................ 0.84 429,517
-------- -----------
NET ASSETS .............................. 100.00% $51,082,264
======== ===========
See Notes to Financial Statements.
<PAGE>
Excelsior Institutional Trust
Schedule of Investments
March 31, 1997
Total Return Bond Fund
Principal Coupon Maturity
Amount Rate Date Value
- ------------ -------- ---------- -----------
U.S. GOVERNMENT & AGENCY
OBLIGATIONS -- 71.59%
Federal Home Loan
Mortgage Corp.
$7,214,495 Pool# G10395 ......... 6.50% 5/01/09 $7,008,233
Government National
Mortgage Association
128,278 Pool #203151 ......... 8.50 2/15/17 131,566
36,501 Pool #356873 ......... 6.50 5/15/23 33,787
9,719,887 Pool #410853 ......... 7.50 12/15/25 9,522,525
4,000,000 Small Business
Administration ...... 7.35 8/10/06 4,015,000
24,840,000 U.S. Treasury
Bonds ............... 7.25 5/15/16 24,925,400
3,700,000 U.S. Treasury Notes 6.38 5/15/99 3,691,908
12,300,000 U.S. Treasury Notes 5.25 1/31/01 11,719,600
34,695,000 U.S. Treasury Notes 5.75 8/15/03 32,732,581
5,703,000 U.S. Treasury Notes 5.88 11/15/05 5,309,139
-----------
TOTAL U.S. GOVERNMENT &
AGENCY OBLIGATIONS
(Cost $101,491,669) ...........................99,089,739
-----------
CORPORATE BONDS -- 8.03%
3,470,000 Coca Cola
Enterprises, Inc. . 7.00 10/01/26 3,434,543
3,865,000 General Electric
Capital Corp. ...... 8.75 5/21/07 4,235,093
3,435,000 WMX Technologies,
Inc. ............... 7.10 8/01/26 3,441,437
-----------
TOTAL CORPORATE BONDS
(Cost $11,380,702) ...........................11,111,073
-----------
ASSET BACKED SECURITIES -- 3.61%
5,000,000 Capital Equipment
Receivables Trust
(Cost $4,996,484) 5.95 7/15/98 4,990,625
-----------
<PAGE>
Principal
Amount Value
- -------------------------------- -------------
REPURCHASE AGREEMENT -- 12.66%
$17,522,698 Agreement with
Dilllon Read & Co.,
6.25%, dated 3/31/97,
due 4/01/97,
to be repurchased at
$17,525,740
collateralized by
$3,174,547 U.S.
Treasury Notes,
7.50%, due
11/15/16, valued at
$3,365,440,
$2,560,118 U.S.
Treasury Notes,
8.75%, due 11/15/08,
valued at
$2,877,996, and
$11,997,811
U.S. Treasury Bills,
due 10/16/97,
valued at $11,640,340
(Cost $17,522,698) $ 17,522,698
-------------
Shares
-----------
OTHER SHORT-TERM INVESTMENTS -- 3.52%
2,417,035 Dreyfus Government
Cash
Management Fund ... 2,417,035
2,451,693 Fidelity U.S.
Treasury II
Fund ............ 2,451,693
-------------
TOTAL OTHER SHORT-
TERM INVESTMENTS
(Cost $4,868,728) 4,868,728
-------------
TOTAL INVESTMENTS
(Cost $140,260,281)........................ 99.41% $137,582,863
OTHER ASSETS AND
LIABILITIES (NET) ........................ 0.59 819,482
-------- -------------
NET ASSETS ................................. 100.00% $138,402,345
======== =============
See Notes to Financial Statements.
<PAGE>
Excelsior Institutional Trust
Schedule of Investments
March 31, 1997
Balanced Fund
Shares Value
-------- --------
COMMON STOCKS -- 56.09%
FINANCIAL -- 11.50%
19,000 Allstate Corp. ..................... $1,128,125
10,000 Bankers Trust New York Corp. ...... 820,000
35,000 Cali Realty Corp. .................. 1,120,000
66,500 Clayton Homes, Inc. ............... 847,875
25,000 Comdisco, Inc. ..................... 778,125
24,000 Exel Ltd. ........................... 1,014,000
26,000 Federal National Mortgage
Association ........................ 939,250
25,000 Hospitality Properties Trust ...... 765,625
28,000 Safeco Corp. ........................ 1,120,000
23,000 U.S. Bancorp ........................ 1,230,500
30,000 Washington Federal, Inc. ............ 682,500
25,000 Winthrop Resources Corp. ............ 706,250
----------
11,152,250
----------
CONSUMER CYCLICAL -- 9.53%
23,000 Dillard Department Stores, Class A 724,500
14,000 Eaton Corp. ........................ 992,250
32,000 Ford Motor Co. ..................... 1,004,000
17,000 General Motors Corp. ............... 941,375
19,000 Goodyear Tire & Rubber Co. ......... 992,750
18,000 J.C. Penney Co. ..................... 857,250
22,000 +King World Productions, Inc. ...... 803,000
30,000 Standard Register Co. ............... 982,500
30,000 +Waban, Inc. ........................ 836,250
19,500 Xerox Corp. ........................ 1,109,063
----------
9,242,938
----------
RAW/INTERMEDIATE
MATERIALS -- 8.79%
19,000 Arco Chemical Co. .................. 826,500
35,000 British Steel ADR .................. 931,875
20,000 Cleveland-Cliffs, Inc. ............... 845,000
14,000 Eastman Chemical Co. ............... 752,500
30,675 Hanna (M.A.) Co. .................. 651,844
51,071 Millenium Chemicals, Inc. ............ 957,581
34,000 Quanex Corp. ........................ 854,250
19,000 Union Camp Corp. .................. 895,375
21,000 Weyerhaeuser Co. ..................... 937,125
14,000 Willamette Industries, Inc. ......... 875,000
----------
8,527,050
----------
<PAGE>
Shares Value
- ------------- -----------
COMMON STOCKS -- (continued)
TECHNOLOGY -- 7.79%
14,000 Intel Corp. ........................ $1,946,000
7,500 International Business Machines
Corp. ............................. 1,030,313
25,000 +Marshall Industries .................. 787,500
35,000 +National Semiconductor ............... 962,500
95,000 +Novell, Inc. ........................ 896,562
20,000 Philips Electronics N.V. ............ 890,000
41,000 +Read-Rite Corp. ..................... 1,035,250
----------
7,548,125
----------
ENERGY -- 5.61%
9,000 Exxon Corp. ........................ 969,750
45,000 Occidental Petroleum Corp. ......... 1,108,125
30,000 Repsol S.A. ADR ..................... 1,222,500
34,000 Ultramar Diamond Shamrock
Corp. .............................. 1,079,500
40,000 YPF S.A. ADR ........................ 1,060,000
----------
5,439,875
----------
CAPITAL GOODS -- 4.42%
34,000 +AGCO Corp. ........................... 939,250
19,000 Cummins Engine Co., Inc. ............ 973,750
55,000 +Griffon Corp. ........................ 660,000
42,000 +Gulfstream Aerospace Corp. ......... 913,500
14,000 Tecumseh Products, Class A ......... 794,500
----------
4,281,000
----------
TRANSPORTATION -- 3.79%
11,000 +AMR Corp. ........................... 907,500
12,168 Delta Air Lines, Inc. ............... 1,023,633
16,000 GATX Corp. ........................ 782,000
40,000 +Knightsbridge Tankers Ltd. ......... 960,000
----------
3,673,133
----------
CONSUMER STAPLES -- 3.62%
27,000 American Greetings Corp., Class A 857,250
44,600 Archer-Daniels-Midland Co. ......... 797,225
36,000 IBP, Inc. ........................... 886,500
8,500 Philip Morris Companies, Inc. ...... 970,062
----------
3,511,037
----------
UTILITIES -- 1.04%
17,860 El Paso Natural Gas Co. ............ 1,011,323
----------
TOTAL COMMON STOCKS
(Cost $41,731,296) .................. 54,386,731
----------
See Notes to Financial Statements.
<PAGE>
Excelsior Institutional Trust
Schedule of Investments
March 31, 1997
Balanced Fund -- (continued)
Principal
Amount Value
----------- --------
CORPORATE BONDS -- 17.07%
FINANCIAL -- 6.95%
$463,000 Chevron Capital USA, Inc. 7.45%,
08/15/04 .......................... $ 461,199
1,500,000 Ford Motor Credit Co. 7.00%,
09/25/01 .......................... 1,494,590
500,000 Ford Motor Credit Co. 7.57%,
05/16/05 .......................... 495,601
1,250,000 General Motors Acceptance Corp.
6.75 %, 06/10/02 ................. 1,223,101
1,200,000 Safeco Corp. 7.875%, 04/01/05 ..... 1,219,777
1,850,000 Xerox Credit Corp. 6.84%,
06/01/00 .......................... 1,841,607
----------
6,735,875
CONSUMER STAPLES -- 3.38%
1,000,000 Anheuser Busch Co., Inc. 8.50%,
03/01/17 .......................... 1,008,966
1,625,000 Campbell Soup Co. 8.75%,
03/13/01 .......................... 1,662,760
600,000 McDonald's Corp. 7.375%,
07/15/02 .......................... 603,713
----------
3,275,439
----------
UTILITIES -- 3.21%
575,000 Alabama Power Co. 7.00%,
01/01/03 .......................... 563,479
775,000 AT&T Corp. 8.20%, 02/15/05 ......... 792,601
275,000 General Telephone of Wisconsin
7.50 %, 03/01/02 ................. 274,881
1,500,000 Southwestern Bell 7.75%,
09/01/09 .......................... 1,483,229
----------
3,114,190
----------
RAW/INTERMEDIATE
MATERIALS -- 2.08%
2,000,000 SmithKline Beecham 7.50%,
05/01/02 .......................... 2,013,662
----------
ENERGY -- 1.45%
1,375,000 Occidental Petroleum Corp. 8.50%,
09/15/04 .......................... 1,410,757
----------
TOTAL CORPORATE BONDS
(Cost $16,803,909) .................. 16,549,923
----------
<PAGE>
Principal
Amount Value
- ---------------------- -----------
U.S. GOVERNMENT & AGENCY
OBLIGATIONS -- 23.21%
Federal Home Loan Bank
$500,000 ++7.00 %, 07/03/06 .................. $ 496,859
1,000,000 ++6.25 %, 06/11/99 .................. 998,314
-----------
1,495,173
-----------
250,000 Federal Home Loan Mortgage
Corp. 7.25%, 08/24/05 ............ 245,704
-----------
1,025,000 Federal National Mortgage
Association 8.625%, 11/10/04 1,055,286
-----------
Financial Assistance Corp.
1,000,000 9.20 %, 09/27/05 .................. 1,062,483
1,100,000 9.50 %, 04/16/04 .................. 1,154,159
-----------
2,216,642
-----------
U.S. Treasury Bonds
500,000 6.25 %, 08/31/00 .................. 493,906
1,000,000 8.25 %, 05/15/05 .................. 1,038,438
1,575,000 12.00 %, 08/15/13 .................. 2,163,656
-----------
3,696,000
-----------
U.S. Treasury Notes
525,000 8.00 %, 08/15/99 .................. 541,734
400,000 6.875%, 08/31/99 .................. 403,000
1,500,000 7.75 %, 11/30/99 .................. 1,542,188
500,000 8.50 %, 02/15/00 .................. 524,375
1,500,000 5.50 %, 12/31/00 .................. 1,440,938
2,900,000 6.625%, 07/31/01 .................. 2,886,408
1,000,000 5.875%, 02/15/04 .................. 945,625
1,275,000 7.25 %, 08/15/04 .................. 1,299,703
,250,000 7.875%, 11/15/04 .................. 1,319,531
1,000,000 7.50 %, 02/15/05 .................. 1,034,063
750,000 6.875%, 05/15/06 .................. 745,547
1,000,000 9.125%, 05/15/09 .................. 1,115,000
-----------
13,798,112
-----------
TOTAL U.S. GOVERNMENT &
AGENCY OBLIGATIONS
(Cost $22,995,228) .................. 22,506,917
-----------
DEMAND NOTES -- 3.87%
356,000 Associates Corp. of North
America Master Notes ............... 356,000
3,394,000 General Electric Co. Promissory
Notes ........................... 3,394,000
-----------
See Notes to Financial Statements.
<PAGE>
Excelsior Institutional Trust
Schedule of Investments
March 31, 1997
Balanced Fund -- (continued)
Principal
Amount Value
- ----------- -----------
DEMAND NOTES -- (continued)
TOTAL DEMAND NOTES
(Cost $3,750,000) ...... $3,750,000
----------
TOTAL INVESTMENTS
(Cost $85,280,433) ...... 100.24% $97,193,571
OTHER ASSETS AND
LIABILITIES (NET) ...... (0.24) (231,072)
-------- ------------
NET ASSETS ............... 100.00% $96,962,499
======== ============
- ------------
+ Non-income producing security.
++ Step Bond -- Coupon rate increases in increments to maturity. Rate is
disclosed as of March 31, 1997. Maturity date disclosed is the ultimate
maturity date.
ADR -- American Depositary Receipt.
See Notes to Financial Statements.
<PAGE>
Excelsior Institutional Trust
Schedule of Investments
March 31, 1997
International Equity Fund
Shares Value
-------- -----
COMMON STOCKS--88.08%
JAPAN -- 12.19%
70,000 +Atlantis Japan Growth Fund Ltd. . $ 450,100
45,000 Canon, Inc. ........................ 964,728
400 Canon Sales Co., Inc. ............ 7,928
12,000 Hirose Electric .................. 659,170
25,000 Honda Motor Co. .................. 746,299
150,000 Mitsubishi Heavy Industries Ltd. . 976,863
45,000 Nippon Denso Co. .................. 884,637
---------
4,689,725
---------
SWITZERLAND -- 10.95%
5,000 ABB AG (Registered) ............... 1,160,770
21,000 Nestle S.A. ADR (Registered) ...... 1,228,116
700 +Novartis AG (Registered) ......... 868,979
2,500 SGS Holdings S.A. .................. 955,724
----------
4,213,589
----------
NETHERLANDS -- 10.42%
15,000 IHC Caland N.V. .................. 801,514
20,000 ING Groep N.V. ..................... 788,183
9,000 Royal Dutch Petroleum Co. ......... 1,575,000
7,000 Wolters Kluwer N.V. ............... 843,270
----------
4,007,967
----------
GERMANY -- 9.57%
30,000 Bayer AG ........................... 1,262,893
12,000 +Daimler-Benz AG .................. 968,577
22,000 Deutsche Bank AG .................. 1,246,702
6,000 Hornbach Baumarkt AG ............... 201,487
----------
3,679,659
----------
HONG KONG -- 7.44%
15,000 HSBC Holdings plc .................. 348,468
400,000 Hong Kong & China Gas ............ 751,142
150,000 Hutchison Whampoa Ltd. ............ 1,127,681
250,000 Johnson Electric Holdings Ltd. ... 635,632
----------
2,862,923
----------
SINGAPORE -- 6.13%
120,000 Acer Computer International Ltd. 189,600
156,000 Courts Singapore Ltd. ............ 195,608
90,000 Develpment Bank of Singapore ...... 1,047,454
140,000 Keppel Corp., Ltd. ............... 882,577
2,000 +Singapore Sesdaq Fund Ltd. ......... 43,500
----------
2,358,739
----------
<PAGE>
Shares Value
- ------------ -----------
COMMON STOCKS -- (continued)
UNITED KINGDOM -- 6.09%
4,700 British Petroleum Co. plc ......... $ 54,606
160,000 Rentokil Group plc ............... 1,101,153
75,000 RTZ Corp. plc (Registered) ......... 1,188,352
----------
2,344,111
----------
FRANCE -- 5.74%
2,000 Financiere et Industrielle Gaz et
Eaux .............................. 897,123
22,000 Michelin, Class B .................. 1,310,947
----------
2,208,070
----------
MALAYSIA -- 3.86%
70,000 Nestle Bhd. ........................ 553,896
255,000 Sime Darby Bhd. .................. 931,671
----------
1,485,567
----------
SWEDEN -- 3.06%
25,000 Astra AB, Class B .................. 1,177,412
----------
SPAIN -- 2.47%
7,000 Banco Intercontinental Espana ...... 949,027
----------
CANADA -- 2.18%
18,000 Imperial Oil Ltd. .................. 839,250
----------
NORWAY -- 1.91%
15,000 Norsk Hydro AS ADR ............... 733,125
----------
THAILAND -- 1.83%
27,000 The Siam Cement Co., Ltd. ......... 703,895
----------
SOUTH AFRICA -- 1.70%
189,218 LibLife Strategic Investments Ltd. 655,282
----------
UNITED STATES -- 1.38%
15,000 Partnerre Holdings Ltd. ............ 530,625
----------
ARGENTINA -- 1.16%
30,000 Quilmes Industrial S.A. ............ 303,000
12,500 Quilmes Industrial S.A. ADR ...... 142,187
----------
445,187
----------
TOTAL COMMON STOCKS
(Cost $30,448,063) .................. 33,884,153
----------
See Notes to Financial Statements.
<PAGE>
Excelsior Institutional Trust
Schedule of Investments
March 31, 1997
International Equity Fund -- (continued)
Principal
Amount Value
- ------------ ---------
CORPORATE OBLIGATIONS -- 3.27%
THAILAND -- 2.43%
$1,000,000 Bangkok Bank Public Co.
(Convertible) 3.25%, 3/03/04 ...... $ 936,250
---------
SINGAPORE -- 0.84%
400,000 Far East Levingston Shipping
1.50%, 5/02/01 ..................... 319,500
---------
TOTAL CORPORATE
OBLIGATIONS
(Cost $1,370,739) .................. 1,255,750
---------
No. of
Warrants
- -----------
WARRANTS -- 0.05%
JAPAN -- 0.03%
13,000 +Atlantis Japan Growth Fund Ltd.,
expiring 4/30/01 .................. 11,440
---------
SINGAPORE -- 0.02%
20,000 +Acer Computer International Ltd.,
expiring 7/31/01 .................. 8,400
---------
TOTAL WARRANTS
(Cost $17,787) ..................... 19,840
---------
Principal
Amounts
- -----------
DEMAND NOTES -- 8.35%
$ 400,000 Associates Corp. of North America
Master Notes ..................... 400,000
2,812,000 General Electric Co. Promissory
Notes .............................. 2,812,000
---------
TOTAL DEMAND NOTES
(Cost $3,212,000) .................. 3,212,000
---------
TOTAL INVESTMENTS
(Cost $35,048,589) ...... 99.75% 38,371,743
OTHER ASSETS AND
LIABILITIES (NET) ...... 0.25% 97,918
-------- ------------
NET ASSETS ............... 100.00% $38,469,661
======== ============
- ------------
+ Non-income producing security.
ADR -- American Depositary Receipt.
At March 31, 1997, sector diversification of the Fund's investment
portfolio was as follows:
% of
Net Market
Sector Diversification Assets Value
- ------------------------------------ ----------- ------------
Financial ........................ 27.61% $10,619,236
Consumer Cyclical ............... 16.44 6,323,065
Consumer Staple .................. 14.56 5,602,416
Demand Notes ..................... 8.35 3,212,000
Raw/Intermediate Materials ...... 8.20 3,155,140
Energy ........................... 7.21 2,771,856
Transportation .................. 7.12 2,736,716
Capital Goods ..................... 3.95 1,520,269
Technology ........................ 3.03 1,166,463
Utilities ........................ 1.95 751,142
Investment Companies ............ 1.28 493,600
Warrants ........................ 0.05 19,840
-------- -----------
Total Investments ............... 99.75% $38,371,743
Other Assets and Liabilities (Net) 0.25 97,918
-------- -----------
Net Assets ..................... 100.00% $38,469,661
======== ===========
See Notes to Financial Statements.
<PAGE>
Excelsior Institutional Trust
Schedule of Investments
March 31, 1997
Optimum Growth Fund
Shares Value
-------- -----
COMMON STOCKS -- 98.41%
CONSUMER STAPLES -- 30.21%
5,300 Abbott Laboratories ............... $ 297,462
3,100 American Home Products Corp. ........ 186,000
8,000 +Amgen, Inc. ........................ 447,000
16,000 Coca Cola Co. ..................... 894,000
5,000 Columbia/HCA Healthcare Corp. 168,125
2,600 ConAgra, Inc. ..................... 141,050
2,800 CPC International, Inc. ............ 229,600
2,100 Eli Lilly & Co. .................. 172,725
4,200 General Mills, Inc. ............... 260,925
13,000 Gillette Co. ..................... 944,125
3,500 H.J. Heinz Co. ..................... 138,250
3,100 International Flavors &
Fragrances, Inc. ................. 135,625
9,800 Johnson & Johnson .................. 518,175
4,300 Kellogg Co. ........................ 289,175
9,200 Merck & Co., Inc. .................. 775,100
4,400 Nabisco Holdings Corp., Class A .... 179,300
12,400 PepsiCo, Inc. ..................... 404,550
11,000 Pfizer, Inc. ..................... 925,375
2,900 Pharmacia & Upjohn, Inc. ......... 106,213
7,100 Philip Morris Companies, Inc. ...... 810,287
3,900 Procter & Gamble Co. ............... 448,500
2,900 Sara Lee Corp. ..................... 117,450
2,300 Schering-Plough Corp. ............ 167,325
5,600 UST, Inc. ........................ 156,100
6,000 Winn-Dixie Stores, Inc. ............ 198,000
2,000 Wrigley (WM.) Jr. Co. ............ 116,750
---------
9,227,187
---------
TECHNOLOGY -- 21.31%
11,000 +America Online, Inc. ............... 466,125
18,000 +Cisco Systems, Inc. ............... 866,250
10,000 +Dell Computer Corp. ............... 676,250
18,000 +EMC Corp. ........................ 639,000
10,000 Intel Corp. ........................ 1,390,000
10,000 Medtronic, Inc. .................. 622,500
12,000 +Microsoft Corp. .................. 1,099,500
26,000 +Sun Microsystems, Inc. ............ 747,500
---------
6,507,125
---------
CONSUMER CYCLICAL -- 16.27%
42,000 +CUC International, Inc. ............ 945,000
10,000 Electronic Data Systems Corp. ...... 403,750
17,000 Home Depot, Inc. .................. 909,500
9,200 McDonald's Corp. .................. 434,700
<PAGE>
Shares Value
- ------------ ----------
COMMON STOCKS -- (continued)
CONSUMER CYCLICAL
-- (continued)
9,000 Nike, Inc., Class B ............... $ 558,000
7,000 +Quintiles Transnational Corp. ...... 377,125
3,000 +Sinclair Broadcast Group, Inc.,
Class A ........................... 78,000
4,500 Time Warner, Inc. .................. 194,625
10,000 Wal-Mart Stores, Inc. ............ 278,750
8,000 Walt Disney Co. .................. 584,000
600 Washington Post Co., Class B ...... 206,400
---------
4,969,850
---------
FINANCIAL -- 15.89%
7,000 American International Group,
Inc. ............................. 821,625
24,000 Charles Schwab Corp. ............... 765,000
10,000 Citicorp ........................... 1,082,500
17,000 Federal National Mortgage
Association ....................... 614,125
21,000 First Data Corp. .................. 711,375
10,000 Merrill Lynch & Co., Inc. ......... 858,750
---------
4,853,375
---------
TELECOMMUNICATIONS -- 8.91%
4,500 +AirTouch Communications, Inc. ...... 103,500
2,900 Ameritech Corp. .................. 178,350
12,000 +Ascend Communications, Inc. ...... 489,000
11,000 AT&T Corp. ........................ 382,250
2,000 +Echostar Communications Corp.,
Class A .......................... 41,000
3,600 GTE Corp. ........................ 167,850
3,662 Lucent Technologies, Inc. ......... 193,171
6,500 +Tele-Communications, Inc., Class A .. 78,000
21,000 +Tellabs, Inc. ..................... 756,000
6,000 U.S. Robotics Corp. ............... 332,250
---------
2,721,371
---------
CAPITAL GOODS -- 2.80%
8,600 General Electric Co. ............... 853,550
---------
RAW/INTERMEDIATE
MATERIALS -- 2.14%
2,300 Dow Chemical Co. .................. 184,000
10,600 Freeport-McMoRan Copper &
Gold, Inc., Class B .............. 321,975
5,500 Sonoco Products Co. ............... 148,500
---------
654,475
---------
See Notes to Financial Statements.
<PAGE>
Excelsior Institutional Trust
Schedule of Investments
March 31, 1997
Optimum Growth Fund -- (continued)
Shares Value
- -------- -----------
COMMON STOCK -- (continued)
ENERGY -- 0.88%
Union Pacific Resources Group,
10,000 Inc. ....................... $ 267,500
----------
TOTAL COMMON STOCKS
(Cost $28,317,846) ............ 30,054,433
----------
Principal
Amount Value
- ----------- -----------
DEMAND NOTES -- 2.44%
$263,000 Associates Corp. of North America
Master Notes .................. $ 263,000
482,000 General Electric Co. Promissory
Notes ........................ 482,000
---------
TOTAL DEMAND NOTES
(Cost $745,000) ............... 745,000
---------
TOTAL INVESTMENTS
(Cost $29,062,846) ...... 100.85% $30,799,433
OTHER ASSETS AND LIABILI-
TIES (NET) (0.85) (259,807)
-------- ------------
NET ASSETS ............... 100.00% $30,539,626
======== ============
- ------------
+ Non-income producing security.
See Notes to Financial Statements.
<PAGE>
Excelsior Institutional Trust
Schedule of Investments
March 31, 1997
Value Equity Fund
Shares Value
------- -------
COMMON STOCKS -- 100.02%
CONSUMER STAPLES -- 24.68%
8,000 Avon Products, Inc. ............... $ 420,000
16,000 Bristol-Meyers Squibb Co. ......... 944,000
10,000 CPC International, Inc. ......... 820,000
10,000 General Mills, Inc. ............... 621,250
12,000 Pharmacia & Upjohn, Inc. ......... 439,500
6,000 Philip Morris Companies, Inc. ... 684,750
40,000 Savannah Foods & Industries, Inc. 525,000
50,000 Styling Technology Corp. ......... 506,250
30,000 Sunbeam Corp., Inc. ............... 900,000
---------
5,860,750
---------
FINANCIAL -- 21.33%
40,000 +Amerin Corp. ..................... 795,000
12,500 Arden Realty Group, Inc. ......... 340,625
37,000 +Bank Plus Corp. .................. 383,875
6,000 Chase Manhattan Corp. ............ 561,750
7,000 J.P. Morgan & Co., Inc. ......... 687,750
17,000 Mid Ocean Ltd. .................. 811,750
15,000 NAC Re Corp. ..................... 534,375
12,200 +Nationwide Financial Services,
Inc., Class A .................... 314,150
20,000 Travelers Property Casualty Corp.,
Class A .......................... 635,000
---------
5,064,275
---------
TECHNOLOGY -- 18.47%
35,000 +ADT Ltd. ........................ 875,000
30,000 +Digex, Inc. ..................... 202,500
5,900 International Business Machines
Corp. .......................... 810,513
25,000 Medical Manager Corp. ............ 231,250
7,000 Motorola, Inc. .................. 422,625
17,000 Nokia Corp., Class A ADR ......... 990,250
15,000 Xerox Corp. ..................... 853,125
---------
4,385,263
---------
Shares Value
- ------------ -----------
COMMON STOCKS -- (continued)
CAPITAL GOODS -- 11.37%
26,000 +American Standard Companies,
Inc. ............................. $1,170,000
8,000 Boeing Co. ........................ 789,000
20,000 NN Ball & Roller, Inc. ............ 207,500
30,000 Westinghouse Electric Corp. ...... 532,500
---------
2,699,000
---------
ENERGY -- 9.90%
60,000 +Hugoton Energy Corp. ............ 615,000
4,500 Mobil Corp. ..................... 587,812
45,000 Offshore Energy Development
Corp. ........................... 405,000
28,000 YPF S.A. ADR ..................... 742,000
---------
2,349,812
---------
TRANSPORTATION -- 7.21%
17,500 +AMERCO ........................... 433,125
37,000 Hvide Marine, Inc., Class A ...... 841,750
50,000 Smithway Motor Express Corp.,
Class A .......................... 437,500
---------
1,712,375
---------
CONSUMER CYCLICAL -- 7.06%
39,000 +Data Documents, Inc. ............ 390,000
20,000 Ford Motor Co. .................. 627,500
20,000 Synthetic Industries, Inc. ...... 355,000
19,000 Viad Corp. ........................ 304,000
---------
1,676,500
---------
TOTAL COMMON STOCKS
(Cost $20,514,546) ............... 23,747,975
----------
TOTAL INVESTMENTS
(Cost $20,514,546) ...... 100.02% $23,747,975
OTHER ASSETS AND
LIABILITIES (NET) ...... (0.02) (4,695)
-------- ------------
NET ASSETS ............... 100.00% $23,743,280
======== ============
- ------------
+Non-income producing security.
ADR -- American Depositary Receipt.
See Notes to Financial Statements.
<PAGE>
Excelsior Institutional Trust
Statements of Assets and Liabilities
March 31, 1997
<TABLE>
<CAPTION>
Total Return
Equity Income Bond Balanced
Fund Fund Fund Fund
--------------- ---------------- ----------------- -------------
<S> <C> <C> <C> <C>
Assets:
Investments, at cost -- see accompanying
Schedules of Investments ........................... $ 109,649,133 $ 51,570,675 $ 140,260,281 $ 85,280,433
============== ============= ============== =============
Investments in securities, at value* (Note 1a) ...... $ 118,589,351 $ 50,652,747 $ 137,582,863 $ 97,193,571
Cash ................................................ 43 -- -- 7,324
Dividends and interest receivable .................. 167,923 742,438 1,729,685 777,797
Receivable for fund shares sold ..................... 123,674 -- 52,650 40,048
Deferred organization expenses (Note 1f) ............ 3,034 3,475 3,640 13,874
Other assets ....................................... 6,128 2,306 6,102 7,154
-------------- ------------- -------------- -------------
Total assets ....................................... 118,890,153 51,400,966 139,374,940 98,039,768
Liabilities:
Payable for investments purchased ............... -- -- -- 954,040
Dividends payable ................................. -- 283,004 717,013 --
Payable for fund shares redeemed .................. 204,445 -- 162,382 50,001
Investment advisory fees payable (Note 2a) ......... 44,517 3,215 16,134 29,297
Administration fees payable (Note 2b) ............ 16,710 6,709 18,626 14,692
Trustees fees and expenses payable (Note 2f) ...... 2,819 1,038 3,025 2,186
Accrued expenses and other liabilities ............ 59,651 24,736 55,415 27,053
-------------- ------------- -------------- -------------
Total liabilities ................................. 328,142 318,702 972,595 1,077,269
-------------- ------------- -------------- -------------
Net Assets .......................................... $ 118,562,011 $ 51,082,264 $ 138,402,345 $ 96,962,499
============== ============= ============== =============
Net Assets Consist of:
Paid-in capital .................................... $ 104,410,760 $ 51,827,765 $ 140,585,035 $ 83,530,709
Undistributed (distributions in excess of) net
investment income ................................. 180,893 (10,723) 28,473 719,750
Accumulated net realized gain on investments . 5,030,140 183,150 466,255 798,902
Net unrealized appreciation (depreciation) of
investments ....................................... 8,940,218 (917,928) (2,677,418) 11,913,138
-------------- ------------- -------------- -------------
Net Assets ....................................... $ 118,562,011 $ 51,082,264 $ 138,402,345 $ 96,962,499
============== ============= ============== =============
Shares outstanding (Unlimited number of
$0.00001 par value shares authorized for each
Fund) ............................................. 12,290,657 7,405,739 19,326,923 11,670,025
Net Asset Value Per Share (net assets / shares
outstanding) .................................... $ 9.65 $ 6.90 $ 7.16 $ 8.31
============== ============= ============== =============
</TABLE>
* Includes repurchase agreement aggregating $17,522,698 for the Total Return
Bond Fund.
See Notes to Financial Statements.
<PAGE>
Excelsior Institutional Trust
Statements of Assets and Liabilities -- (continued)
March 31, 1997
<TABLE>
<CAPTION>
International Optimum Value
Equity Growth Equity
Fund Fund Fund
---------------- ---------------- ----------------
<S> <C> <C> <C>
Assets:
Investments, at cost -- see accompanying Schedules of
Investments ............................................. $ 35,048,589 $ 29,062,846 $ 20,514,546
============= ============= =============
Investments in securities, at value (Note 1a) ............ $ 38,371,743 $ 30,799,433 $ 23,747,975
Cash ...................................................... 151 598 --
Dividends and interest receivable ........................ 124,603 39,970 48,484
Receivable for fund shares sold ........................... 44,269 -- --
Deferred organization expenses (Note 1f) .................. 2,651 1,014 1,014
Other assets ............................................. 2,417 1,181 695
------------- ------------- -------------
Total assets ............................................. 38,545,834 30,842,196 23,798,168
Liabilities:
Payable for investments purchased ........................ -- 259,737 --
Payable for fund shares redeemed ........................ 31,786 3,878 --
Investment advisory fees payable (Note 2a) ............... 7,125 9,112 5,816
Administration fees payable (Note 2b) ..................... 11,718 4,175 3,231
Trustees fees and expenses payable (Note 2f) ............ 814 542 498
Due to custodian bank .................................... -- -- 25,841
Accrued expenses and other liabilities .................. 24,730 25,126 19,502
------------- ------------- -------------
Total liabilities ....................................... 76,173 302,570 54,888
------------- ------------- -------------
Net Assets ................................................ $ 38,469,661 $ 30,539,626 $ 23,743,280
============= ============= =============
Net Assets Consist of:
Paid-in capital .......................................... $ 35,063,575 $ 30,615,158 $ 21,110,566
Undistributed (distributions in excess of) net investment
income ................................................ (129,768) 52,275 52,005
Accumulated net realized gain (loss) on investments ...... 215,154 (804,467) (34,750)
Net unrealized appreciation (depreciation) of investments 3,320,700 676,660 2,615,459
------------- ------------- -------------
Net Assets ................................................ $ 38,469,661 $ 30,539,626 $ 23,743,280
============= ============= =============
Net Assets:
Institutional Shares .................................... $ 38,469,661 $ 27,182,332 $ 23,686,930
Trust Shares ............................................. -- 3,357,294 56,350
Shares outstanding (Unlimited number of $0.00001 par
value shares authorized for each Fund):
Institutional Shares .................................... 4,262,471 2,667,320 2,090,584
Trust Shares ............................................. -- 329,796 4,975
Net Asset Value Per Share (net assets / shares outstanding):
Institutional Shares ....................................... $ 9.03 $ 10.19 $ 11.33
============= ============= =============
Trust Shares ............................................. -- $ 10.18 $ 11.33
============= ============= =============
</TABLE>
See Notes to Financial Statements.
<PAGE>
Excelsior Institutional Trust
Statements of Operations
Period Ended March 31, 1997
<TABLE>
<CAPTION>
Total Return
Equity Income Bond
Fund(b) Fund(b) Fund(b)
--------------- ------------- --------------
<S> <C> <C> <C>
Investment Income
Dividend income ..................... $ 1,274,805 $ --- $ ---
Interest income ..................... 147,680 2,641,382 7,187,660
Less: Foreign taxes withheld ......... -- -- --
------------- ------------ ------------
Total Income ..................... 1,422,485 2,641,382 7,187,660
Expenses (Note 1g):
Investment advisory fees
(Note 2a) ........................... 661,332 245,064 710,377
Administrative fees (Note 2b) ...... 155,310 57,907 167,883
Custodian fees ..................... 32,536 13,742 34,514
Transfer agent fees .................. 3,939 8,270 6,892
Auditing fees ........................ 5,460 3,586 4,493
Legal fees ........................... 27,447 11,336 35,129
Prospectus and shareholder
reports ........................... 9,187 5,980 10,800
Registration fees .................. 28,130 8,362 13,572
Trustees' fees and expenses
(Note 2f) ........................... 8,124 2,659 9,301
Distribution fees -- Trust Shares
(Note 2e) ........................... -- -- --
Amortization of organization
expenses (Note 1f) .................. 1,027 1,447 1,204
Insurance expense .................. 2,613 3,163 7,386
Miscellaneous ........................ 1,367 445 1,372
------------- ------------ ------------
Total Expenses ..................... 936,472 361,961 1,002,923
Less: Waiver of fees
(Note 2c) ........................ (223,185) (173,417) (457,871)
------------- ------------ ------------
Net Expenses ..................... 713,287 188,544 545,052
------------- ------------ ------------
Net Investment Income .................. 709,198 2,452,838 6,642,608
------------- ------------ ------------
Realized and Unrealized Gain (Loss)
(Note 3):
Net realized gain on investments ...... 5,378,047 221,976 892,647
Net realized gain (loss) on foreign
currency transactions ............... -- -- --
Net change in unrealized
appreciation/
depreciation of investments dur-
ing the period (a) 6,409,437 (473,993) (1,699,077)
------------- ------------ ------------
Net Realized and Unrealized Gain
(Loss) .............................. 11,787,484 (252,017) (806,430)
------------- ------------ ------------
Net Increase in Net Assets Resulting
from Operations ..................... $ 12,496,682 $ 2,200,821 $ 5,836,178
============= ============ ============
------------
(a) Includes net unrealized
appreciation/depreciation of
foreign currency .................... -- -- --
(b) For the ten months ended
March 31, 1997 (See Note 4).
(c) For the period from June 1, 1996
(Commencement of Operations)
to March 31, 1997.
<PAGE>
<CAPTION>
International Optimum Value
Balanced Equity Growth Equity
Fund(b) Fund(b) Fund(c) Fund(c)
------------- --------------- ---------- ----------
<S> <C> <C> <C> <C>
Investment Income
Dividend income ..................... $ 1,169,820 $ 345,955 $ 231,082 $ 295,228
Interest income ..................... 2,411,285 110,797 42,708 3,203
Less: Foreign taxes withheld ......... -- (60,867) -- --
------------ ---------- ---------- -----------
Total Income ..................... 3,581,105 395,885 273,790 298,431
Expenses (Note 1g):
Investment advisory fees
(Note 2a) ........................... 512,765 292,816 131,188 118,055
Administrative fees (Note 2b) ...... 121,293 58,563 30,991 27,893
Custodian fees ..................... 25,530 55,746 7,810 7,762
Transfer agent fees .................. 4,646 4,169 8,122 6,479
Auditing fees ........................ 666 4,343 5,383 5,351
Legal fees ........................... 31,441 10,628 9,794 9,374
Prospectus and shareholder
reports ........................... 12,031 2,831 2,920 3,828
Registration fees .................. 979 1,322 22,584 20,041
Trustees' fees and expenses
(Note 2f) ........................... 6,881 2,358 2,232 2,133
Distribution fees -- Trust Shares
(Note 2e) ........................... -- -- 3,232 43
Amortization of organization
expenses (Note 1f) .................. 4,733 1,003 204 204
Insurance expense .................. 10,534 2,573 1,794 2,080
Miscellaneous ........................ 752 1,450 615 585
------------ ---------- ---------- -----------
Total Expenses ..................... 732,251 437,802 226,869 203,828
Less: Waiver of fees
(Note 2c) ........................ (180,419) (173,028) (82,357) (76,512)
------------ ---------- ---------- -----------
Net Expenses ..................... 551,832 264,774 144,512 127,316
------------ ---------- ---------- -----------
Net Investment Income .................. 3,029,273 131,111 129,278 171,115
------------ ---------- ---------- -----------
Realized and Unrealized Gain (Loss)
(Note 3):
Net realized gain on investments ...... 2,735,694 451,182 (804,467) (34,750)
Net realized gain (loss) on foreign
currency transactions ............... -- (57,101) -- --
Net change in unrealized
appreciation/
depreciation of investments dur-
ing the period (a) 1,611,223 57,410 676,660 2,615,459
------------ ---------- ---------- -----------
Net Realized and Unrealized Gain
(Loss) .............................. 4,346,917 451,491 (127,807) 2,580,709
------------ ---------- ---------- -----------
Net Increase in Net Assets Resulting
from Operations ..................... $ 7,376,190 $ 582,602 $ 1,471 $2,751,824
============ ========== ========== ===========
------------
(a) Includes net unrealized
appreciation/depreciation of
foreign currency ..................... -- $ (2,454) -- --
(b) For the ten months ended
March 31, 1997 (See Note 4).
(c) For the period from June 1, 1996
(Commencement of Operations)
to March 31, 1997.
</TABLE>
See Notes to Financial Statements.
<PAGE>
Excelsior Institutional Trust
Statements of Changes in Net Assets
<TABLE>
<CAPTION>
Equity Fund
----------------------------------
Period Ended Year Ended
March 31, May 31,
1997 (b) 1996
--------------- ---------------
Increase (Decrease) in Net Assets
from:
<S> <C> <C>
Operations:
Net investment income ............... $ 709,198 $ 280,822
Net realized gain on
investments ........................ 5,378,047 1,711,256
Net change in unrealized
appreciation/depreciation of
investments during the
period ........................... 6,409,437 1,271,632
------------- -------------
Net increase in net assets
resulting from operations 12,496,682 3,263,710
Distributions to Shareholders:
From net investment income ......... (608,037) (263,354)
In excess of net investment
income .............................. -- --
From net realized gains ............ (1,774,938) --
------------- -------------
Total distributions to
shareholders ..................... (2,382,975) (263,354)
------------- -------------
Transactions in Shares of Beneficial
Interest:
Net proceeds from shares sold. ...... 28,801,841 10,449,094
Contribution in-kind ............... 100,714,496 --
Reinvestment of dividends ............ 46,531 18,659
Cost of shares redeemed ............ (44,609,820) (5,381,530)
------------- -------------
Net increase (decrease) in net
assets from beneficial interest
transactions ..................... 84,953,048 5,086,223
------------- -------------
Total Increase (Decrease) in
Net Assets ........................ 95,066,755 8,086,579
Net Assets:
Beginning of Period .................. 23,495,256 15,408,677
------------- -------------
End of Period (a) .................. $ 118,562,011 $ 23,495,256
============= =============
Capital Share Transactions:
Shares sold ........................ 3,042,701 1,273,927
Contribution in-kind ............... 11,211,157 --
Shares issued for dividend
reinvestment. ..................... 4,908 2,276
Shares redeemed ..................... (4,598,732) (638,657)
------------- -------------
Net Increase (Decrease) in Shares
Outstanding ........................ 9,660,034 637,546
============= =============
------------
(a) Including undistributed (distri-
butions in excess of) net invest-
ment income $ 180,893 $ 79,732
(b) For the ten months ended
March 31, 1997 (See Note 4).
<CAPTION>
Income Fund Total Return Bond Fund
--------------------------------- ----------------------------------
Period Ended Year Ended Period Ended Year Ended
March 31, May 31, March 31, May 31,
1997 (b) 1996 1997 (b) 1996
--------------- --------------- ---------------- -------------
Increase (Decrease) in Net Assets
from:
<S> <C> <C> <C> <C>
Operations:
Net investment income ............... $ 2,452,838 $ 2,196,012 $ 6,642,608 $ 2,532,363
Net realized gain on
investments ........................ 221,976 728,960 892,647 496,712
Net change in unrealized
appreciation/depreciation of
investments during the
period ........................... (473,993) (1,694,757) (1,699,077) (2,190,037)
------------- ------------- -------------- -------------
Net increase in net assets
resulting from operations 2,200,821 1,230,215 5,836,178 839,038
Distributions to Shareholders:
From net investment income ......... (2,453,645) (2,194,625) (6,627,379) (2,524,201)
In excess of net investment
income .............................. (10,723) -- -- --
From net realized gains ............ (562,577) (300,331) (487,553) (557,621)
------------- ------------- -------------- -------------
Total distributions to
shareholders ..................... (3,026,945) (2,494,956) (7,114,932) (3,081,822)
------------- ------------- -------------- -------------
Transactions in Shares of Beneficial
Interest:
Net proceeds from shares sold. ...... 35,338,940 4,886,857 39,912,748 44,811,645
Contribution in-kind ............... -- -- 77,792,503 ---
Reinvestment of dividends ............ -- -- 96,057 91,507
Cost of shares redeemed ............ (7,431,851) (12,850,432) (43,137,691) (2,556,385)
------------- ------------- -------------- -------------
Net increase (decrease) in net
assets from beneficial interest
transactions ..................... 27,907,089 (7,963,575) 74,663,617 42,346,767
------------- ------------- -------------- -------------
Total Increase (Decrease) in
Net Assets ........................ 27,080,965 (9,228,316) 73,384,863 40,103,983
Net Assets:
Beginning of Period .................. 24,001,299 33,229,615 65,017,482 24,913,499
------------- ------------- -------------- -------------
End of Period (a) .................. $ 51,082,264 $ 24,001,299 $ 138,402,345 $ 65,017,482
============= ============= ============== =============
Capital Share Transactions:
Shares sold ........................ 5,026,877 667,752 5,461,630 6,054,335
Contribution in-kind ............... -- -- 10,749,843 --
Shares issued for dividend
reinvestment. ..................... -- -- 13,188 12,229
Shares redeemed ..................... (1,057,030) (1,767,902) (5,957,354) (340,750)
------------- ------------- -------------- -------------
Net Increase (Decrease) in Shares
Outstanding ........................ 3,969,847 (1,100,150) 10,267,307 5,725,814
============= ============= ============== =============
------------
(a) Including undistributed (distri-
butions in excess of) net invest-
ment income $ (10,723) $ 807 $ 28,473 $ 13,244
(b) For the ten months ended
March 31, 1997 (See Note 4).
</TABLE>
See Notes to Financial Statements.
<PAGE>
Excelsior Institutional Trust
Statements of Changes in Net Assets -- (continued)
<TABLE>
<CAPTION>
Balanced Fund International Equity Fund
-------------------------------- --------------------------------
Period Ended Year Ended Period Ended Year Ended
March 31, May 31, March 31, May 31,
1997(b) 1996 1997(b) 1996
--------------- --------------- --------------- ---------------
<S> <C> <C> <C> <C>
Increase (Decrease) in Net Assets from:
Operations:
Net investment income ..................... $ 3,029,273 $ 3,765,088 $ 131,111 $ 311,222
Net realized gain on investments ............ 2,735,694 3,058,186 451,182 262,528
Net realized gain (loss) on foreign currency
transactions .............................. -- -- (57,101) 8,314
Net change in unrealized
appreciation/depreciation of investments
during the period ........................ 1,611,223 5,262,714 57,410 2,447,750
------------- ------------- ------------- -------------
Net increase in net assets resulting from
operations .............................. 7,376,190 12,085,988 582,602 3,029,814
Distributions to Shareholders:
From net investment income .................. (3,169,226) (3,769,789) (226,392) (259,741)
In excess of net investment income ......... -- -- (129,768) --
From net realized gains ..................... (3,666,341) (2,141,545) (377,475) (128,616)
------------- ------------- ------------- -------------
Total distributions to shareholders ...... (6,835,567) (5,911,334) (733,635) (388,357)
------------- ------------- ------------- -------------
Transactions in Shares of Beneficial Interest:
Net proceeds from shares sold ............... 18,753,237 58,108,025 11,788,947 15,986,577
Contribution in-kind ........................ -- -- 8,235,903 --
Reinvestment of dividends .................. 1,657 1,427 -- --
Cost of shares redeemed ..................... (17,971,066) (43,123,869) (5,926,057) (2,910,308)
------------- ------------- ------------- -------------
Net increase in net assets from beneficial
transactions .............................. 783,828 14,985,583 14,098,793 13,076,269
------------- ------------- ------------- -------------
Total Increase in Net Assets ............ 1,324,451 21,160,237 13,947,760 15,717,726
Net Assets:
Beginning of Period ........................ 95,638,048 74,477,811 24,521,901 8,804,175
------------- ------------- ------------- -------------
End of Period (a) ........................... $ 96,962,499 $ 95,638,048 $ 38,469,661 $ 24,521,901
============= ============= ============= =============
Capital Share Transactions:
Shares sold ................................. 2,281,968 7,347,793 1,294,468 1,953,107
Contribution in-kind ........................ -- -- 894,234 --
Shares issued for dividend reinvestment ...... 201 180 -- --
Shares redeemed .............................. (2,190,146) (5,442,894) (652,788) (343,478)
------------- ------------- ------------- -------------
Net Increase in Shares Outstanding ............ 92,023 1,905,079 1,535,914 1,609,629
============= ============= ============= =============
------------
(a) Including undistributed (distributions in
excess of) net investment income ........... $ 719,750 $ 864,007 $ (129,768) $ 150,383
(b) For the ten months ended March 31, 1997
(See Note 4).
</TABLE>
See Notes to Financial Statements.
<PAGE>
Excelsior Institutional Trust
Statements of Changes in Net Assets -- (continued)
<TABLE>
<CAPTION>
Optimum Growth Value Equity
Fund Fund
---------------- ----------------
Period Ended Period Ended
March 31, March 31,
1997 (b) 1997 (b)
---------------- ----------------
<S> <C> <C>
Increase (Decrease) in Net Assets from:
Operations:
Net investment income ....................................... $ 129,278 $ 171,115
Net realized loss on investments .............................. (804,467) (34,750)
Net change in unrealized appreciation/depreciation of
investments during the period .............................. 676,660 2,615,459
------------- -------------
Net increase in net assets resulting from operations ...... 1,471 2,751,824
Distributions to Shareholders from net investment income:
Institutional Shares .......................................... (75,546) (119,110)
Trust Shares ................................................ (1,457) --
------------- -------------
Total distributions to shareholders ........................ (77,003) (119,110)
------------- -------------
Transactions in Shares of Beneficial Interest:
Net proceeds from shares sold
Institutional Shares .......................................... 6,828,215 1,035,782
Trust Shares ................................................ 3,547,991 59,997
Contribution in-kind
Institutional Shares .......................................... 20,819,867 20,345,814
Reinvestment of dividends
Institutional Shares .......................................... 390 --
Trust Shares ................................................ 1,458 --
Cost of shares redeemed
Institutional Shares .......................................... (576,929) (331,027)
Trust Shares ................................................ (5,834) --
------------- -------------
Net increase in net assets from beneficial interest
transactions ............................................. 30,615,158 21,110,566
------------- -------------
Total Increase in Net Assets .............................. 30,539,626 23,743,280
Net Assets:
Beginning of Period .......................................... -- --
------------- -------------
End of Period (a) ............................................. $ 30,539,626 $ 23,743,280
============= =============
Capital Share Transactions:
Shares Sold:
Institutional Shares (c) .................................... 640,078 86,905
Trust Shares (d) ............................................. 330,238 4,975
Contribution in-kind:
Institutional Shares (c) .................................... 2,081,986 2,034,581
Shares issued for dividend reinvestment:
Institutional Shares (c) .................................... 37 --
Trust Shares (d) ............................................. 142 --
Shares redeemed:
Institutional Shares (c) .................................... (54,781) (30,902)
Trust Shares (d) ............................................. (584) --
------------- -------------
Net increase in shares outstanding .............................. 2,997,116 2,095,559
============= =============
------------
(a) Including undistributed net investment income ............... $ 52,275 $ 52,005
(b) For the period June 1, 1996 (Commencement of
operations) to March 31, 1997.
(c) Initial offering of Institutional Shares commenced operations
on June 1, 1996 for Optimum Growth Fund and Value Equity
Fund.
(d) Initial offering of Trust Shares commenced operations on July
3, 1996 for Optimum Growth Fund and January 15, 1997 for
Value Equity Fund.
</TABLE>
See Notes to Financial Statements.
<PAGE>
Excelsior Institutional Trust
Financial Highlights
Selected data for a share outstanding throughout each period are as follows:
<TABLE>
<CAPTION>
Equity Fund
------------------------------------------------
January 16,
Period Ended Year Ended 1995(b) to
March 31, May 31, May 31,
1997(a) 1996 1995
------- ---- ----
<S> <C> <C> <C>
Net Asset Value, Beginning of Period ....... $ 8.93 $ 7.73 $ 7.00
-------- -------- --------
Investment Operations:
Net investment income ..................... 0.05 0.11 0.05
Net realized and unrealized gain (loss) on
investments ................................. 0.86 1.20 0.70
-------- -------- --------
Total From Investment
Operations .............................. 0.91 1.31 0.75
-------- -------- --------
Distributions:
From net investment income .................. (0.07) (0.11) (0.02)
In excess of net investment income ......... -- -- --
From net realized gains ..................... (0.12) -- --
-------- -------- --------
Total Distributions ........................ (0.19) (0.11) (0.02)
-------- -------- --------
Net Asset Value, End of Period ............. $ 9.65 $ 8.93 $ 7.73
======== ======== ========
Total Return ............................... 10.22%(c) 17.04% 10.80%(c)
======== ======== ========
Ratios and Supplemental Data:
Ratios to Average Net Assets
Expenses (d) ................................. 0.70%(f) 0.36% 0.12%(f)
Net Investment Income (d) .................. 0.70%(f) 1.32% 2.44%(f)
Portfolio Turnover ........................... 32% 113% 34%
Average Commission Rate (e) .................. $ 0.0800 N/A N/A
Net Assets at end of Period (000's omitted) $118,562 $ 23,495 $ 15,409
<CAPTION>
Income Fund
---------------------------------------------
January 16,
Period Ended Year Ended 1995(b) to
March 31, May 31, May 31,
1997(a) 1996 1995
------- ---- ----
<S> <C> <C> <C>
Net Asset Value, Beginning of Period ....... $ 6.99 $ 7.33 $ 7.00
------- -------- -------
Investment Operations:
Net investment income ..................... 0.38 0.51 0.19
Net realized and unrealized gain (loss) on
investments ................................. (0.01) (0.27) 0.33
------- -------- -------
Total From Investment
Operations .............................. 0.37 0.24 0.52
------- -------- -------
Distributions:
From net investment income .................. (0.38) (0.51) (0.19)
In excess of net investment income ......... 0.00(h) -- --
From net realized gains ..................... (0.08) (0.07) --
------- -------- -------
Total Distributions ........................ (0.46) (0.58) (0.19)
------- -------- -------
Net Asset Value, End of Period ............. $ 6.90 $ 6.99 $ 7.33
======= ======== =======
Total Return ............................... 5.39%(c) 3.18% 7.51%(c)
======= ======== =======
Ratios and Supplemental Data:
Ratios to Average Net Assets
Expenses (d) ................................. 0.50%(f) 0.26% 0.12%(f)
Net Investment Income (d) .................. 6.50%(f) 6.99% 7.17%(f)
Portfolio Turnover ........................... 107% 67% 34%
Average Commission Rate (e) .................. N/A N/A N/A
Net Assets at end of Period (000's omitted) $51,082 $ 24,001 $33,230
</TABLE>
<PAGE>
Excelsior Institutional Trust
Financial Highlights
Selected data for a share outstanding throughout each period are as follows:
<TABLE>
<CAPTION>
Total Return Bond Fund
-------------------------------------------------
January 19,
Period Ended Year Ended 1995(b) to
March 31, May 31, May 31,
1997 (a) 1996 1995
-------- ---- ----
<S> <C> <C> <C>
Net Asset Value, Beginning of
Period .............................. $ 7.18 $ 7.47 $ 7.00
------- -------- -------
Investment Operations:
Net investment income ............... 0.37 0.48 0.18
Net realized and unrealized gain
(loss) on investments ............... 0.01(g) (0.17) 0.47
------- -------- -------
Total From Investment
Operations ..................... 0.38 0.31 0.65
------- -------- -------
Distributions:
From net investment income ......... (0.37) (0.48) (0.18)
In excess of net investment
income .............................. -- -- --
From net realized gains ............ (0.03) (0.12) --
------- -------- -------
Total Distributions ............... (0.40) (0.60) (0.18)
------- -------- -------
Net Asset Value, End of Period ...... $ 7.16 $ 7.18 $ 7.47
======= ======== =======
Total Return ........................ 5.29%(c) 4.20% 9.40%(c)
======= ======== =======
Ratios and Supplemental Data:
Ratios to Average Net Assets
Expenses (d) ........................ 0.50%(f) 0.32% 0.12%(f)
Net Investment Income (d) ............ 6.08%(f) 6.47% 7.09%(f)
Portfolio Turnover .................. 200% 127% 84%
Average Commission Rate (e) ......... N/A N/A N/A
Net Assets at end of Period (000's
omitted) ........................... $138,402 $ 65,017 $24,913
</TABLE>
- ------------
(a) For the ten months ended March 31, 1997 (See Note 4).
(b) Commencement of Operations
(c) Not annualized
(d) Reflects voluntary fee waiver and reimbursement of expenses (if any) by
the advisor and administrators. Without these waivers, the ratios of
expenses to average net assets and net investment income to average net
assets would have been as follows:
Expenses to Average Net
Assets 0.92%(f) 1.49% 2.67%(f) 0.96%(f) 1.35% 1.65%(f)
0.92%(f) 1.33% 1.93%(f)
Net Investment Income to
Average Net Assets 0.48%(f) 0.19% (0.12)%(f) 6.04%(f) 5.90%
5.65%(f) 5.66%(f) 5.46% 5.28%(f)
(e) For fiscal years begining on or after September 1, 1995, a fund is
required to disclose the average commission rate per share it paid for
portfolio trades on which commissions were charged, during the period.
(f) Annualized
(g) The amount shown for the period ended March 31, 1997 for a share
outstanding throughout that period does not accord with the aggregate net
losses on investments for that period because of the timing of sales and
repurchases of the portfolio shares in relation to fluctuating market
value of the investments in the Fund.
(h) Amount represents less than $0.01 per share.
See Notes to Financial Statements.
<PAGE>
Excelsior Institutional Trust
Financial Highlights -- (continued)
Selected data for a share outstanding throughout each period are as follows:
<TABLE>
<CAPTION>
Balanced Fund
--------------------------------------------------
July 11,
Period Ended Year Ended 1994(b) to
March 31, May 31, May 31,
1997 (a) 1996 1995
------------------ ------------ ----------------
<S> <C> <C> <C>
Net Asset Value, Beginning of Period ......... $ 8.26 $ 7.70 $ 7.00
------- -------- -------
Investment Operations:
Net investment income ..................... 0.26 0.34 0.35
Net realized and unrealized gain on
investments .............................. 0.40 0.78 0.64
------- -------- -------
Total From Investment Operations 0.66 1.12 0.99
------- -------- -------
Distributions:
From net investment income .................. (0.28) (0.36) (0.26)
In excess of net investment income ......... -- -- --
From net realized gains ..................... (0.33) (0.20) (0.03)
------- -------- -------
Total Distributions ........................ (0.61) (0.56) (0.29)
------- -------- -------
Net Asset Value, End of Period ............... $ 8.31 $ 8.26 $ 7.70
======= ======== =======
Total Return ................................. 8.20%(c) 15.07% 14.59%(c)
======= ======== =======
Ratios and Supplemental Data:
Ratios to Average Net Assets
Expenses (d) .............................. 0.70%(f) 0.38% 0.12%(f)
Net Investment Income (d) .................. 3.84%(f) 4.34% 5.55%(f)
Portfolio Turnover ........................ 53% 56% 57%
Average Commission Rate (e) ............... $0.0591 N/A N/A
Net Assets at end of Period (000's omitted) ... $96,962 $ 95,638 $74,478
<CAPTION>
International Equity Fund
-------------------------------------------
January 24,
Period Ended Year Ended 1995(b) to
March 31, May 31, May 31,
1997 (a) 1996 1995
-------- ---- ----
<S> <C> <C> <C>
Net Asset Value, Beginning of Period ......... $ 8.99 $ 7.88 $ 7.00
------- -------- -------
Investment Operations:
Net investment income ..................... 0.01 0.09 0.08
Net realized and unrealized gain on
investments .............................. 0.21 1.20 0.80
------- -------- -------
Total From Investment Operations 0.22 1.29 0.88
------- -------- -------
Distributions:
From net investment income .................. (0.06) (0.12) --
In excess of net investment income ......... (0.03) -- --
From net realized gains ..................... (0.09) (0.06) --
------- -------- -------
Total Distributions ........................ (0.18) (0.18) --
------- -------- -------
Net Asset Value, End of Period ............... $ 9.03 $ 8.99 $ 7.88
======= ======== =======
Total Return ................................. 2.41%(c) 16.58% 12.57%(c)
======= ======== =======
Ratios and Supplemental Data:
Ratios to Average Net Assets
Expenses (d) .............................. 0.90%(f) 0.60% 0.25%(f)
Net Investment Income (d) .................. 0.45%(f) 1.71% 3.47%(f)
Portfolio Turnover ........................ 45% 19% 8%
Average Commission Rate (e) ............... $0.0293 N/A N/A
Net Assets at end of Period (000's omitted) . $38,470 $ 24,522 $ 8,804
----------
(a) For the ten months ended March 31, 1997 (See Note 4).
(b) Commencement of Operations
(c) Not annualized
(d) Reflects voluntary fee waiver and reimbursement of expenses (if any) by the advisor and
administrators. Without these waivers, the ratios of expenses to average net assets and net
investment income to average net assets would have been as follows:
Expenses to Average Net Assets ........... 0.93%(f) 1.21% 1.32%(f) 1.49 %(f) 2.05% 3.32%(f)
Net Investment Income to
Average Net Assets ..................... 3.61%(f) 3.51% 4.35%(f) (0.14)%(f) 0.26% 0.40%(f)
(e) For fiscal years begining on or after September 1, 1995, a fund is required to disclose the average
commission rate per share it paid for portfolio trades on which commissions were charged, during the period.
(f) Annualized
</TABLE>
See Notes to Financial Statements.
<PAGE>
Excelsior Institutional Trust
Financial Highlights -- (continued)
Selected data for a share outstanding throughout each period are as follows:
<TABLE>
<CAPTION>
Optimum Growth Fund
-----------------------------------------
Institutional Shares Trust Shares
---------------------- -----------------
June 1, July 3,
1996 (a) to 1996(a) to
March 31, March 31,
1997 1997
---------------------- -----------------
<S> <C> <C>
Net Asset Value, Beginning of Period ..................... $ 10.00 $ 9.87
------------ -----------
Investment Operations:
Net investment income ................................. 0.05 0.02
Net realized and unrealized gain (loss) on investments . 0.17(f) 0.31(f)
------------ -----------
Total From Investment Operations ..................... 0.22 0.33
------------ -----------
Distributions from net investment income .................. (0.03) (0.02)
------------ -----------
Net Asset Value, End of Period ........................... $ 10.19 $ 10.18
============ ===========
Total Return ............................................. 2.23%(b) 3.31%(b)
============ ===========
Ratios and Supplemental Data:
Ratios to Average Net Assets
Expenses (e) .......................................... 0.70%(e) 1.05%(e)
Net Investment Income (c) .............................. 0.66%(e) 0.33%(e)
Portfolio Turnover .................................... 20% 20%
Average Commission Rate (d) ........................... $ 0.0280 $ 0.0280
Net Assets at end of Period (000's omitted) ............... $ 27,183 $ 3,357
----------
(a) Commencement of Operations
(b) Not annualized
(c) Reflects voluntary fee waiver and reimbursement of expenses (if any) by the advisor and administrators. Without these
waivers, the ratios of expenses to average net assets and net investment income to average net assets would have been
as follows:
Expenses to Average Net Assets ........................ 1.11%(e) 1.47%(e)
Net Investment Income to
Average Net Assets ................................. 0.25%(e) (0.09)%(e)
(d) For fiscal years begining on or after September 1, 1995, a fund is required to disclose the average
commission rate per share it paid for portfolio trades on which commissions were charged, during the period.
(e) Annualized
(f) The amount shown for the period ended March 31, 1997 for a share outstanding throughout that period does not
accord with the aggregate net losses on investments for that period because of the timing of sales and repurchases
of the portfolio shares in relation to fluctuating market value of the investments in the Fund.
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
Value Equity Fund
-----------------------------------------
Institutional Shares Trust Shares
---------------------- -----------------
June 1, January 15,
1996(a) to 1997(a) to
March 31, March 31,
1997 1997
---------------------- -----------------
<S> <C> <C>
Net Asset Value, Beginning of Period ..................... $ 10.00 $ 12.08
------------ -----------
Investment Operations:
Net investment income ................................. 0.08 0.01
Net realized and unrealized gain (loss) on investments . 1.31 (0.76)
------------ -----------
Total From Investment Operations ..................... 1.39 (0.75)
------------ -----------
Distributions from net investment income .................. (0.06) --
------------ -----------
Net Asset Value, End of Period ........................... $ 11.33 $ 11.33
============ ===========
Total Return ............................................. 13.91%(b) (6.21)%(b)
============ ============
Ratios and Supplemental Data:
Ratios to Average Net Assets
Expenses (e) .......................................... 0.70%(e) 1.05%(e)
Net Investment Income (c) .............................. 0.94%(e) 0.54%(e)
Portfolio Turnover .................................... 64% 64%
Average Commission Rate (d) ........................... $ 0.0783 $ 0.0783
Net Assets at end of Period (000's omitted) ............... $ 23,687 $ 56
----------
(a) Commencement of Operations
(b) Not annualized
(c) Reflects voluntary fee waiver and reimbursement of expenses (if any) by the advisor and administrators. Without these
waivers, the ratios of expenses to average net assets and net investment income to average net assets would have been
as follows:
Expenses to Average Net Assets ....................... 1.12%(e) 1.43%(e)
Net Investment Income to
Average Net Assets ................................. 0.52%(e) 0.16%(e)
(d) For fiscal years begining on or after September 1, 1995, a fund is required to disclose the average
commission rate per share it paid for portfolio trades on which commissions were charged, during the period.
(e) Annualized
(f) The amount shown for the period ended March 31, 1997 for a share outstanding throughout that period does not
accord with the aggregate net losses on investments for that period because of the timing of sales and repurchases
of the portfolio shares in relation to fluctuating market value of the investments in the Fund.
</TABLE>
See Notes to Financial Statements.
<PAGE>
Excelsior Institutional Trust
Notes to Financial Statements
1. Significant Accounting Policies:
Excelsior Institutional Trust ("Trust") is registered under the Investment
Company Act of 1940 ("Act") and the Securities Act of 1933, as an open-end
diversified management investment company and is comprised of nine funds (each
a "Fund", collectively, the "Funds"), each having its own investment objectives
and policies.
These financial statements pertain to the following seven Funds: Excelsior
Institutional Equity Fund ("Equity Fund"), Excelsior Institutional Income Fund
("Income Fund"), Excelsior Institutional Total Return Bond Fund ("Total Return
Bond Fund"), Excelsior Institutional Balanced Fund ("Balanced Fund"), Excelsior
Institutional International Equity Fund ("International Equity Fund"),
Excelsior Institutional Optimum Growth Fund ("Optimum Growth Fund") and
Excelsior Institutional Value Equity Fund ("Value Equity Fund"). With regard to
Optimum Growth Fund and Value Equity Fund, the Trust offers two classes of
shares: Institutional Shares and Trust Shares. The Optimum Growth Fund and
Value Equity Fund commenced operations on June 1, 1996 with the offering of
Institutional Shares. The Optimum Growth Fund and Value Equity Fund began
offering Trust Shares on July 3, 1996 and January 15, 1997, respectively. The
financial statements for Excelsior Institutional Equity Growth Fund and
Excelsior Institutional Bond Index Fund are presented separately.
The following is a summary of the significant accounting policies of the
Funds. Such policies are in conformity with generally accepted accounting
principles for investment companies and are consistently followed by the Funds
in the preparation of the financial statements. Generally accepted accounting
principles require management to make estimates and assumptions that affect the
reported amounts and disclosures on the financial statements. Actual results
could differ from these estimates.
a) Valuation of Investments--Investments in securities that are traded on
a domestic stock exchange are valued at the last sale price on the exchange on
which such securities are primarily traded or at the last sale price on a
national securities market. Securities traded over-the-counter are valued each
business day on the basis of closing over-the-counter bid prices. Securities
for which there were no transactions are valued at the average of the most
recent bid and asked prices (as calculated by an independent pricing service
(the "Service") based upon its evaluation of the market for such securities)
when, in the judgment of the Service, quoted bid and asked prices for
securities are readily available and are representative of the market. Bid
price is used when no asked price is available. Investments in securities that
are primarily traded on foreign securities exchanges are generally valued at
the preceding closing values of such securities on their respective exchanges,
except that when an occurrence subsequent to the time a value is so established
is likely to have changed such value, then a fair value of those secur- ities
will be determined by consideration of other factors under the direction of the
Funds' Trustees. A security which is traded on more than one exchange is valued
at the quotation on the exchange determined to be the primary market on which
the security is traded.
All other foreign securities are valued at the last current bid quotation
if market quotations are available, or at fair value as determined in
accordance with policies established by the Board of Trustees. Investment
valuations, other assets, and liabilities initially expressed in foreign
currencies are converted each business day into U.S. dollars based upon current
exchange rates. Purchases and sales of foreign investments and income and
expenses are converted into U.S. dollars based upon currency
<PAGE>
Excelsior Institutional Trust
Notes to Financial Statements -- (Continued)
exchange rates prevailing upon the respective dates of such transactions. Gains
and losses attributable to foreign currency exchange rates are recorded for
financial statement purposes as net realized gains and losses on investments.
That portion of both realized and unrealized gains and losses on investments
that results from fluctuations in foreign currency exchange rates is not
separately disclosed.
Securities for which market quotations are not readily available are
valued at fair value pursuant to guidelines adopted by the Funds' Trustees.
Short-term debt instruments with remaining maturities of 60 days or less are
valued at amortized cost, which approximates market value.
b) Forward foreign currency exchange contracts--The International Equity
Fund's participation in forward currency exchange contracts will be limited to
hedging involving either specific transactions or portfolio positions.
Transaction hedging involves the purchase or sale of foreign currency with
respect to specific receivables or payables of a Fund generally arising in
connection with the purchase or sale of its portfolio securities. Risk may
arise upon entering into these contracts from the potential inability of
counterparties to meet the terms of their contracts and is generally limited to
the amount of unrealized gain on the contracts, if any, on the date of default.
Risk may also arise from unanticipated movements in the value of a foreign
currency relative to the U.S. dollar. Contracts are marked-to-market daily and
the change in market value recorded as unrealized appreciation or depreciation.
Realized gains and losses arising from such transactions are included in net
realized gains or losses from foreign currency transactions.
c) Security transactions and investment income--Security transactions are
recorded on a trade date basis. Realized gains and losses on investments sold
are recorded on the basis of identified cost. Interest income, including where
applicable, amortization of discounts and premiums on investments, is recorded
on the accrual basis. Dividend income is recorded on the ex-dividend date,
except for certain dividends from foreign securities, which are recorded as
soon as the Fund is informed of the dividend.
d) Dividends to Shareholders--Dividends equal to all or substantially all
of each Fund's net investment income will be declared and paid as follows: For
the Equity Fund, Balanced Fund, Optimum Growth Fund, and the Value Equity Fund,
dividends will be declared and paid at least quarterly; for the Income Fund and
Total Return Bond Fund, dividends will be declared daily and paid at least
monthly; and for the International Equity Fund, dividends will be declared and
paid at least once a year. Distributions to shareholders of net realized
capital gains, if any, are normally declared and paid annually, but the Funds
may make distributions on a more frequent basis to comply with the distribution
requirements of the Internal Revenue Code. To the extent that net realized
capital gain can be offset by capital loss carryovers, if any, it is the policy
of the Trust not to distribute such gain.
Dividends and distributions are determined in accordance with Federal
income tax regulations which may differ from generally accepted accounting
principles. These differences are primarily due to differing treatments for
foreign currency transactions, passive foreign investment companies, deferral
of losses on wash sales, and post-October losses.
In order to avoid a Federal excise tax, each Fund is required to
distribute certain minimum amounts of net realized capital gain and net
investment income for the respective periods ending October 31 and December 31
in each calendar year.
<PAGE>
Excelsior Institutional Trust
Notes to Financial Statements -- (Continued)
e) Repurchase agreements--The Funds may purchase portfolio securities from
financial institutions deemed to be creditworthy by the investment advisor
subject to the seller's agreement to repurchase and the Funds' agreement to
resell such securities at mutually agreed upon prices. Securities purchased
subject to such repurchase agreements are deposited with the Funds' custodian
or are maintained in the Federal Reserve/Treasury book-entry system and must
have, at all times, an aggregate market value of not less than 102% of the
repurchase price (including accrued interest).
If the value of the underlying security, including accrued interest, falls
below 102% of the repurchase price plus accrued interest, the Funds will
require the seller to deposit additional collateral by the next business day.
Default or bankruptcy of the seller may, however, expose the applicable Fund to
the possible delay in the connection with the disposition of the underlying
securities or loss to the extent that proceeds from the sale of the underlying
securities were less than the repurchase price under the agreement.
f) Deferred Organization Expense--Expenses incurred by each Fund in
connection with its organization are being amortized on a straight-line basis
over a five year period.
g) Expense Allocation--Expenses incurred by the Trust with respect to any
two or more Funds in the Trust are allocated in proportion to the average net
assets of each Fund, except where allocations of direct expenses to each Fund
can otherwise be fairly made. Expenses directly attributable to a Fund are
charged to that Fund and expenses directly attributable to a particular class
of shares in a Fund are charged to such class..
h) Federal Income Taxes--It is the policy of each Fund to qualify as a
regulated investment company, if such qualification is in the best interest to
the shareholders, by complying with the requirements of the Internal Revenue
Code of 1986, as amended, applicable to regulated investment companies, and by
distributing substantially all of its taxable earnings to its shareholders.
At March 31, 1997, the following Funds had approximate capital loss
carryforwards for Federal tax purposes available to offset future net capital
gains through the indicated expiration dates:
<TABLE>
<CAPTION>
Expiration Date
March 31,
----------------
2005
----------------
<S> <C>
Optimum Growth Fund ............................................ $404,322
Value Equity Fund ............................................... 49,313
</TABLE>
<PAGE>
Excelsior Institutional Trust
Notes to Financial Statements -- (Continued)
At March 31,1997, the aggregate cost and gross unrealized appreciation and
gross unrealized depreciation in the value of investments owned by the Funds,
as computed on a federal tax basis, were as follows:
<TABLE>
<CAPTION>
Total
Return
Equity Income Bond
Fund Fund Fund
--------------- ------------- --------------
<S> <C> <C> <C>
Aggregate Cost ...... $ 109,705,051 $ 51,570,675 $140,612,022
============= ============ =============
Gross unrealized
appreciation ...... $ 13,030,540 $ 20,586 $ 15,000
------------- ------------ -------------
Gross unrealized
depreciation ...... (4,146,240) (938,514) (3,044,159)
------------- ------------ -------------
Net unrealized
appreciation
(depreciation) ... $ 8,884,300 $ (917,928) $ (3,029,159)
============= ============ =============
<CAPTION>
International Optimum Value
Balanced Equity Growth Equity
Fund Fund Fund Fund
------------- --------------- -------------- ------------
<S> <C> <C> <C> <C>
Aggregate Cost ...... $85,293,053 $35,293,402 $29,062,846 $20,514,546
============ =========== =========== ===========
Gross unrealized
appreciation ...... $13,286,544 $ 4,519,451 $ 3,334,827 $ 4,088,728
------------ ----------- ----------- -----------
Gross unrealized
depreciation ...... (1,386,026) (1,441,110) (1,598,240) (855,299)
------------ ----------- ----------- -----------
Net unrealized
appreciation
(depreciation) ... $11,900,518 $ 3,078,341 $ 1,736,587 $ 3,233,429
============ =========== =========== ===========
</TABLE>
2. Investment Advisory Fee, Administration Fee, Distribution Expenses and
Related Party Transactions:
a) United States Trust Company of New York ("U.S. Trust") serves as the
investment advisor to the Equity Fund, Income Fund, Total Return Bond Fund,
Optimum Growth Fund and Value Equity Fund. For the services provided pursuant
to the Investment Advisory Agreements, U.S. Trust is entitled to receive a fee,
computed daily and paid monthly, at the annual rate of 0.65% of the average
daily net assets of each Fund.
United States Trust Company of The Pacific Northwest ("U.S. Trust Pacific")
serves as the investment advisor to the Balanced Fund and International Equity
Fund. U.S. Trust Pacific is a subsidiary of U.S. Trust. U.S. Trust Pacific has
delegated the daily management of the security holdings of these Funds to the
investment managers named below, acting as sub-advisors:
Balanced Fund ................................ Becker Capital Management, Inc.
International Equity Fund .................. Harding, Loevner Management, L.P.
For the services provided pursuant to the Investment Advisory Agreements,
U.S. Trust Pacific is entitled to receive a fee, computed daily and paid
monthly, at the annual rate of 0.65% of the average daily net assets for the
Balanced Fund, and 1.00% of the average daily net assets of the International
Equity Fund. Pursuant to separate sub-advisory agreements between U.S. Trust
Pacific and each sub-advisor, sub-advisory fees are payable monthly by U.S.
Trust Pacific, computed on the average daily value of each Fund's net assets at
the following annual rates: 0.425% for the Balanced Fund, and 0.50% for the
International Equity Fund. The sub-advisors are compensated only by U.S. Trust
Pacific, and receive no fee directly from the Funds.
b) U.S. Trust, Chase Global Funds Services Company ("CGFSC"), a subsidiary
of The Chase Manhattan Bank and Federated Administrative Services ("FAS"), a
wholly-owned subsidiary of Federated
<PAGE>
Excelsior Institutional Trust
Notes to Financial Statements -- (Continued)
Investors (collectively, the "Administrators") provide administrative services
to the Trust. For the services provided to the Funds, the Administrators are
entitled jointly to annual fees, computed daily and paid monthly, based on the
combined aggregate average daily net assets of the Funds (excluding
International Equity Fund), Excelsior Funds, Inc. (excluding its international
equity portfolios), and Excelsior Tax-Exempt Funds, Inc., all of which are
affiliated investment companies, as follows: .200% of the first $200 million,
.175% of the next $200 million, and .150% over $400 million. Administration
fees payable by each Fund of the three investment companies are determined in
proportion to the relative average daily net assets of the respective Funds for
the period paid. The Administrators are entitled jointly to annual fees,
computed daily and paid monthly, based on the average daily net assets of the
International Equity Fund at an annual rate of .20%. For the period ended March
31, 1997 administration fees charged by U.S. Trust were as follows:
Equity Fund ........................................................... $21,006
Income Fund ........................................................... $ 7,766
Total Return Bond Fund ............................................... $22,216
Balanced Fund ........................................................ $ 9,604
International Equity Fund ............................................ $12,071
Optimum Growth Fund .................................................. $ 4,140
Value Equity Fund ..................................................... $ 3,689
c) From time to time, as they may deem appropriate in their sole
discretion, or pursuant to applicable state expense limitations, U.S. Trust,
U.S. Trust Pacific and the Administrators may undertake to waive a portion or
all of the fees payable to them and also may reimburse the Funds for a portion
of other operating expenses. Until further notice, U.S. Trust and U.S. Trust
Pacific have agreed to voluntarily waive fees and reimburse expenses to the
extent necessary to maintain an annual operating expense ratio of not more than
0.50% of average daily net assets of the Income Fund and Total Return Bond
Fund; 0.70% of average daily net assets of the Equity Fund, Balanced Fund and
the Institutional Shares of both Optimum Growth Fund and Value Equity Fund;
0.90% of average daily net assets of the International Equity Fund; and 1.05%
of average daily net assets of the Trust Shares of the Optimum Growth Fund and
Value Equity Fund. For the period ended March 31, 1997, U.S. Trust voluntarily
waived fees in the following amounts:
Equity Fund ......................................................... $223,185
Income Fund ......................................................... $173,417
Total Return Bond Fund ............................................. $457,871
Balanced Fund ...................................................... $180,419
International Equity Fund .......................................... $173,028
Optimum Growth Fund ................................................ $ 82,357
Value Equity Fund ................................................... $ 76,512
d) The Trust, on behalf of the Funds, intends to enter into administrative
servicing agreements with various service organizations (which may include
affiliates of U.S. Trust) requiring them to provide administrative support
services to their customers owning shares of the Funds. As a consideration for
the administrative services provided by each service organization to its
customers, each Fund will pay the
<PAGE>
Excelsior Institutional Trust
Notes to Financial Statements -- (Continued)
service organizations an administrative service fee at the annual rate of up to
.40% of the average daily net asset value of its shares held by the service
organizations' customers. Such services may include assisting in processing
purchase, exchange or redemption requests; transmitting and receiving funds in
connection with customer orders to purchase, exchange or redeem shares; and
providing periodic statements. The adviser intends to voluntarily waive fees in
an amount equal to the administrative service fees, when incurred. For the
period ended March 31, 1997, no administrative service fees have been charged
to the Funds.
e) Pursuant to a Distribution Agreement, Edgewood Services, Inc. (the
"Distributor") serves as the Trust's distributor. Under the Funds' distribution
Plan, adopted pursuant to Rule 12b-1 under the Act, the Trust Shares of the
Optimum Growth Fund and Value Equity Fund may compensate the Distributor
monthly for its services which are intended to result in the sale of Trust
Shares, in an amount not to exceed the annual rate of .75% of the average daily
net asset value of each Fund's outstanding Trust Shares. Trust Shares currently
bear the expense of such distribution fees at the annual rate of .35% of the
average daily net asset value of the Fund's outstanding Trust Shares.
f) Independent Trustees receive an annual retainer of $4,000 and an
additional $250 for each meeting of the Board of Trustees attended. In
addition, the Trust reimburses independent Trustees for reasonable expenses
incurred when acting in their capacity as Trustees. Officers and Trustees of
the Trust, deemed to be affiliated or "interested parties" under the Act
receive no compensation from the Trust for their services.
g) For the period ended March 31, 1997, brokerage commissions on
investment transactions were paid to U.S. Trust in the amount of $2,177 for the
Value Equity Fund.
3. Purchases and Sales of Investment Securities.
a) Investment transactions (excluding short-term investments) for the
period ended March 31,1997 were as follows:
<TABLE>
<CAPTION>
Cost of Contribution Proceeds
Purchases In-Kind From Sales
-------------- -------------- -------------
<S> <C> <C> <C>
Equity Fund ..................... $ 23,754,793 $98,112,894 $ 36,975,361
Income Fund ..................... $ 67,781,136 -- $ 43,808,865
Total Return Bond Fund ......... $223,888,987 $70,167,280 $234,304,317
Balanced Fund .................. $ 48,564,379 -- $ 52,976,758
International Equity Fund ...... $ 17,644,319 $ 8,174,558 $ 14,866,632
Optimum Growth Fund ............ $ 14,356,645 $19,506,270 $ 4,782,727
Value Equity Fund ............... $ 15,079,909 $19,379,293 $ 13,895,343
</TABLE>
<PAGE>
Excelsior Institutional Trust
Notes to Financial Statements -- (Continued)
b) Investment transactions in U.S. Government and Agency Obligations
(excluding short-term investments) for the period ended March 31, 1997 were as
follows:
<TABLE>
<CAPTION>
Cost of Contribution Proceeds
Purchases In-Kind From Sales
-------------- ------------ -------------
<S> <C> <C> <C>
Equity Fund ..................... -- -- --
Income Fund ..................... $ 61,888,199 -- $ 36,278,674
Total Return Bond Fund ......... $191,855,496 $ 56,629,859 $196,303,558
Balanced Fund .................. $ 28,864,660 -- $ 27,619,775
International Equity Fund ...... -- -- --
Optimum Growth Fund ............ -- -- --
Value Equity Fund ............... -- -- --
</TABLE>
4. Other:
With regard to the Equity Fund, Income Fund, Total Return Bond Fund,
Balanced Fund and International Equity Fund, the Trust changed its fiscal year
end from May 31 to March 31.
<PAGE>
REPORT OF ERNST & YOUNG LLP, INDEPENDENT AUDITORS
To the Shareholders and Board of Trustees
Excelsior Institutional Trust
We have audited the accompanying statements of assets and liabilities,
including the schedule of investments of the Excelsior Institutional Equity
Fund, Excelsior Institutional Income Fund, Excelsior Institutional Total
Return Bond Fund, Excelsior Institutional Balanced Fund, Excelsior
Institutional International Equity Fund, Excelsior Institutional Optimum Growth
Fund and Excelsior Institutional Value Equity Fund, seven of the Funds
comprising Excelsior Institutional Trust, (the "Trust"), as of March 31, 1997,
the related statements of operations for the ten month period then ended, and
the statements of changes in net assets and financial highlights for each of
the periods indicated therein. These financial statements and financial
highlights are the responsibility of the Trust's management. Our responsibility
is to express an opinion on these financial statements and financial highlights
based on our audits.
We conducted our audits in accordance with generally accepted auditing
standards. Those standards require that we plan and perform the audit to obtain
reasonable assurance about whether the financial statements and financial
highlights are free of material misstatement. An audit includes examining, on a
test basis, evidence supporting the amounts and disclosures in the financial
statements. Our procedures included confirmation of securities owned as of March
31, 1997, by correspondence with the custodian and brokers. An audit also
includes assessing the accounting principles used and significant estimates made
by management, as well as evaluating the overall financial statement
presentation. We believe that our audits provide a reasonable basis for our
opinion.
In our opinion, the financial statements and financial highlights referred to
above present fairly, in all material respects, the financial position of each
of the respective Funds constituting the Excelsior Institutional Trust at March
31, 1997, the results of their operations for the ten month period then ended,
and the changes in their net assets and financial highlights for each of the
periods indicated therein, in conformity with generally accepted accounting
principles.
Ernst & Young LLP
Boston, Massachusetts
May 9, 1997
<PAGE>
Federal Tax Information (Unaudited):
For the period ended March 31, 1997, the percentage of dividends paid
that qualify for the 70% dividends received deduction for corporate
shareholders, the designation of long-term capital gain and the amounts expected
to be passed through to shareholders as foreign tax credits are approximated as
follows:
<TABLE>
<CAPTION>
Dividends
Received Long-Term Foreign Tax
Deduction Capital Gain Credit
------------ ------------ ------------
<S> <C> <C> <C>
Equity Fund ............................... 36% $ 815,000 --
Income Fund ............................... -- 419,000 --
Total Return Bond Fund .................... -- 140,000 --
Balanced Fund ............................. 26% 3,229,000 --
International Equity Fund ................. -- -- $61,000
Optimum Growth Fund ....................... -- -- --
Value Equity Fund ......................... -- -- --
</TABLE>
