ANNUAL REPORT
December 31, 1997
TIFF
INVESTMENT Investment management
PROGRAM for foundations
February 26, 1998
Dear TIP Member:
We are pleased to present the Annual Report to
Members of the TIFF Investment Program, Inc. (TIP).
As you know, TIP is a family of multi-manager,
commingled funds open exclusively to 501(c)(3)
organizations. TIP administers six Funds at present:
Multi-Asset, International Equity, Emerging Markets, U.S.
Equity, Bond, and Short-Term. All of the TIFF Funds enable
member foundations to delegate to TIP responsibility for the
time-intensive tasks of selecting money managers and other
vendors. The Multi-Asset Fund goes beyond this by providing
Members with an opportunity to also delegate to TIP
responsibility for the all-important task of asset allocation.
We are very gratified by the favorable reception
that TIP has received from the not-for-profit community. We
are engaged in active discussions with numerous
organizations throughout the United States that have
expressed interest in learning more about TIP and would
welcome the opportunity to discuss this exciting initiative
with other eligible investors.
For further information about the TIFF Investment
Program, please call us at 804-984-0084.
Sincerely,
David A. Salem
President
==============================================================================
Contents
==============================================================================
TIFF Multi-Asset Fund
Performance Graph ................................................ 1
Schedule of Investments ...........................................2
TIFF International Equity Fund
Performance Graph ................................................ 8
Schedule of Investments ...........................................9
TIFF Emerging Markets Fund
Performance Graph ............................................... 14
Schedule of Investments ..........................................15
TIFF U.S. Equity Fund
Performance Graph ............................................... 20
Schedule of Investments ..........................................21
TIFF Bond Fund
Performance Graph ............................................... 24
Schedule of Investments ..........................................25
TIFF Short-Term Fund
Performance Graph ................................................28
Schedule of Investments ..........................................29
Statements of Assets and Liabilities ......................................30
Statements of Operations ..................................................36
Statements of Changes in Net Assets .......................................38
Financial Highlights ......................................................41
Notes to Financial Statements .............................................47
Report of Independent Accountants..........................................62
Graph
===============================================================================
TIFF Multi-AssetFund
December 31, 1997
===============================================================================
Policy Considerations: The Fund is designed as a core
vehicle for that portion of an endowment committed to
marketable securities. Its objective is to produce a five
percent inflation-adjusted return with sufficient
consistency to induce its holders to "stay the course": to
adhere to investment policies that comport better with their
goal of preserving purchasing power than do policies that
place more emphasis on avoiding short-term embarrassment.
The Fund seeks to outperform its benchmark through three
means: (1) active security selection within asset class
segments; (2) occasional shifting of assets among these
segments; and (3) judicious use of other commingled
investment vehicles.
Performance Evaluation: The Fund has surpassed its goal of
generating an annualized return at least 5% above inflation,
but this is unsurprising given the upward trend of financial
assets since the Fund commenced operations. The Fund
outperformed the Constructed Index that serves as its
benchmark from its inception through mid-November 1997. But
the last six weeks of 1997 were unkind to the Fund, and it
has fallen behind its benchmark. For the first 137 weeks of
its 143 week life, the Fund managed to outperform its
benchmark despite a material underweighting in U.S. stocks,
which has been the best performing asset class of those in
which the Fund primarily invests. This tilt away from U.S.
stocks, which has hovered near the limit of 10% for some
time (15% exposure vs. 25% neutral weight and 15% minimum),
is the product of valuation judgments by the Fund's managers
as distinct from a policy tilt by the cooperative's
directors. Fortunately, the drag produced by the managers'
cautious view of U.S. stocks has been partially offset by
favorable security selection within other asset classes.
The Fund has also profited in the relative sense (i.e.,
gained ground against its benchmark) from its Equity
Substitutes segment, which employs strategies not readily
available via conventional mutual funds.
Investment Performance (For Periods Ended December 31, 1997)
Total Return
Year Cumulative since Annualized since
Ended Inception (3/31/95) Inception (3/31/95)
TIFF Multi-Asset Fund 5.5% 37.8% 12.4%
Multi-Asset Constructed 11.1% 40.3% 13.1%
Index**
** 25% Wilshire 5000; 30% MSCI All Country World ex US
Index; 15% Merrill Lynch Treasury Bill Index + 5% per annum;
10% MSCI
Global
Resource-Related Index; 15% Lehman Aggregate Bond
Index; and 5% Lehman Majors ex US Bond Index
==============================================================================
TIFF Multi-Asset Fund / Schedule of Investments
December 31, 1997
==============================================================================
Long-Term Investments [97.1%] Shares Value +
Common Stocks [44.5%]
U.S. Common Stocks [16.3%]
Aerospace [0.4%]
AlliedSignal, Inc. 19,000 $739,813
Boeing & Co. 13,500 660,656
-----------
Total 1,400,469
-----------
Airlines [0.4%]
Continental Airlines - Class B * 30,791 1,481,817
-----------
Automobile Parts & Equipment [0.1%]
Exide Corp. 5,689 147,203
Wabash National Corp. 4,353 123,788
----------
Total 270,991
----------
Chemicals [0.4%]
Airgas, Inc. * 34,000 476,000
Carbide/Graphite Group, Inc., (The) 18,910 638,213
*
Wellman, Inc. 16,000 312,000
----------
Total 1,426,213
----------
Communications [0.0%] +++
Cable Design Technologies 4,172 162,187
----------
Computer Software [0.2%]
DataWorks Corp. * 28,562 567,670
----------
Construction [0.5%]
Camco International, Inc. 9,500 605,031
J. Ray McDermott, SA * 30,000 1,290,000
----------
Total 1,895,031
----------
Cosmetics [0.3%]
Colgate-Palmolive Co. 13,000 955,500
French Fragrances, Inc. * 19,500 177,938
----------
Total 1,133,438
----------
Electronics [0.6%]
ACT Manufacturing, Inc. * 9,470 133,764
Catalina Lighting, Inc. * 157,650 561,628
Eltron International, Inc. * 8,803 266,291
Flextronics International, Ltd. * 8,836 304,842
Information Storage Devices, Inc. * 9,674 58,346
MicroAge, Inc. * 6,051 91,143
Motorola, Inc. 13,000 741,813
Supertex, Inc. * 16,781 182,493
----------
Total 2,340,320
----------
Financial [1.2%]
Federal Home Loan Mortgage Corp. 13,865 581,463
Federal National Mortgage Association 38,004 2,168,604
Allied Capital Corp. 70,800 1,575,300
The PMI Group, Inc. 5,028 363,587
----------
Total 4,688,954
----------
Foods [0.2%]
Wrigley (WM) Jr. Co. 11,000 875,188
----------
Health Care [0.2%]
Coram Healthcare Corp. * 83,378 $281,401
PacifiCare Health Systems, Inc. - 10,067 527,259
Class B * ----------
Total 808,660
----------
Shares Value +
Hotels/Restaurants [0.7%]
American General Hospitality Corp. 15,691 $419,734
Applebee's International, Inc. 34,663 626,100
Brinker International, Inc. * 17,606 281,696
La Quinta Motor Inns, Inc. 52,049 1,005,196
Starwood Lodging Trust 7,989 462,363
----------
Total 2,795,089
----------
Leisure [0.3%]
Alliance Gaming Corp * 25,438 124,010
Casino America, Inc. * 110,000 268,125
YES! Entertainment Corp. * 50,032 92,244
Coastcast Corp. * 5,821 80,766
Galileo International, Inc. 20,986 579,738
----------
Total 1,144,883
----------
Machines [1.1%]
Deere & Co. 13,000 758,063
Dover Corp. 36,000 1,300,500
Stewart & Stevenson Services, Inc. 17,463 445,307
Thermo Electron Corp. * 28,000 1,246,000
UCAR International, Inc. * 11,700 467,268
----------
Total 4,217,138
----------
Manufacturing [1.0%]
Coleman Co, Inc. * 31,621 507,912
KLA-Tencor Corp. * 70,000 2,703,750
Vans, Inc. * 17,607 266,306
Warnaco Group, Inc. - Class A 12,105 379,794
----------
Total 3,857,762
----------
Medical Supplies [0.8%]
ALARIS Medical, Inc. * 10,000 48,750
Baxter International, Inc. 20,000 1,008,750
Physio-Control International Corp. * 135,850 2,156,619
----------
Total 3,214,119
----------
Metals [1.3%]
Aluminum Company of America (Alcoa) 20,700 1,456,763
Century Aluminum Company 7,200 97,200
EASCO, Inc. 56,000 742,000
Phelps Dodge Corp. 9,400 585,150
RMI Titanium Co. * 26,672 533,440
Santa Fe Energy Resources, Inc. * 80,000 900,000
Titanium Metals Corp. * 13,500 389,812
Stillwater Mining Co. * 25,000 418,750
----------
Total 5,123,115
----------
Mining [0.8%]
Freeport-McMoRan Copper & Gold, Inc.- 60,200 921,813
Class A
Newmont Mining Corp. 45,150 1,326,281
Registry (The), Inc. * 20,728 950,897
----------
Total 3,198,991
----------
Oil/Gas Exploration [1.2%]
Barrett Resources Corp. * 20,000 605,000
Pioneer Natural Resources Co. 24,691 714,506
Pogo Producing Co. 40,000 1,180,000
Tom Brown, Inc. * 9,100 175,175
Union Texas Petroleum Holdings, Inc. 50,000 1,040,625
Vastar Resources, Inc. 20,000 715,000
----------
Total 4,430,306
----------
Shares Value +
Oil/Gas Services [2.3%]
Amerada Hess Corp. 10,000 $ 548,750
Anadarko Petroleum Corp. 30,000 1,820,625
Baker Hughes, Inc. 30,000 1,308,750
Exxon Corp. 16,000 979,000
Pride International, Inc. * 15,000 378,750
Reading & Bates Corp. * 20,000 837,500
Schlumberger, Ltd. 15,000 1,207,500
Texaco, Inc. 12,144 660,330
Tuboscope Vetco International Corp.* 30,000 721,875
Union Pacific Resources Group, Inc. 12,500 303,125
----------
Total 8,766,205
----------
Pharmaceutical [0.4%]
Jones Medical Industries, Inc. * 19,408 742,356
Pfizer, Inc. * 12,000 894,750
----------
Total 1,637,106
----------
Producer Goods [0.0%] +++
Apogee Enterprises, Inc. 14,368 170,620
----------
Publishing [0.1%]
Westvaco Corp. 10,000 314,375
----------
Railroad [0.1%]
Wisconsin Central Transportation Corp* 10,800 252,450
----------
Real Estate [0.1%]
Kilroy Realty Corp. 8,658 248,918
----------
Retail [0.8%]
BJ's Wholesale Club, Inc. * 18,118 568,452
Books-A-Million, Inc. * 72,500 421,406
Buffets, Inc. * ++++ 0 4
Gadzooks, Inc. * 23,453 492,513
Kenneth Cole Productions, Inc. - 19,528 313,669
Series A *
Musicland Stores Corp. * 18,325 134,002
Proffitt's, Inc. * 10,014 284,773
TJX Companies, Inc. 11,004 378,263
Wet Seal, Inc. (The) - Class A * 12,995 383,352
----------
Total 2,976,434
----------
Services [0.0%] +++
Computer Learning Centers, Inc. * 3,237 198,266
----------
Steel [0.1%]
Oregon Steel Mills, Inc. 16,225 345,795
Steel Technologies, Inc. 11,187 131,447
----------
Total 477,242
----------
Telecommunications [0.2%]
Metrocall, Inc. * 34,395 169,825
USCI, Inc. * 95,700 669,900
----------
Total 839,725
----------
Textiles [0.2%]
Authentic Fitness Corp. 46,695 860,939
----------
Thrifts [0.1%]
Washington Mutual, Inc. 4,292 273,883
----------
Transportation [0.2%]
USFreightways Corp. 15,941 518,083
Werner Enterprises, Inc. 1 10
----------
Total 518,093
----------
Shares Value +
Total U.S. Common Stocks
(Cost $58,707,582) $62,566,597
----------
Foreign Common Stocks [28.2%]
Argentina [0.4%]
Quilmes Industrial SA 37,960 408,070
YPF-Sociedad Anonima ADR 30,000 1,025,625
----------
Total 1,433,695
----------
Austria [0.2%]
Vogel & Noot Waermetechnik AG 40,560 918,534
----------
Total
Australia [0.0%] +++
Resolute Ltd. 48,354 35,299
----------
Bermuda [0.1%]
PartnerRe Ltd. 11,000 510,125
----------
Brazil [0.2%]
Companhia Vale Do Rio Doce - ADR 34,500 694,005
----------
Canada [3.4%]
Agnico-Eagle Mines Ltd. 42,430 230,713
Alberta Energy Company Ltd. 60,000 1,163,502
Alcan Aluminium Ltd. 50,000 1,381,250
Anderson Exploration Ltd. * 102,182 1,001,077
Barrick Gold Corp. 90,000 1,676,250
Canadian Occidental Petroleum Ltd. 50,000 1,131,250
Euro-Nevada Mining Corp. 26,400 356,976
Franco-Nevada Mining Ltd. 12,000 235,636
Imperial Oil Ltd. 20,000 1,284,387
Memotec Communications, Inc. * 70,000 54,782
Open Text Corp. * 36,962 494,367
PanCanadian Petroleum Ltd. 50,000 803,620
Placer Dome, Inc. 80,200 1,017,538
Queenstake Resources Ltd. * 375,000 228,307
Talisman Energy, Inc. * 30,000 911,250
TELUS Corp. 26,366 584,885
TVX Gold, Inc. * 96,650 326,192
----------
Total 12,881,982
----------
Denmark [0.4%]
InWear Group AS 55,000 1,686,846
----------
Finland [0.1%]
Benefon OY 43,450 495,618
----------
France [1.7%]
Chargeurs International SA 6,038 361,136
Equipements et Composants pour
l'Industrie Automobile 13,550 2,723,957
Financiere et Industrielle Gaz et Eaux 1,950 840,713
Rhone-Poulenc SA - ADR 8,913 395,514
Total Compagnie Francaise des
Petroles SA ADR 40,000 2,220,000
Valeo SA 8 543
----------
Total 6,541,863
----------
Germany [2.0%]
ESG Re Ltd. * 12,928 303,808
Bayer AG 17,000 635,549
Daimler-Benz AG 11,000 772,295
Deutsche Bank AG 16,000 1,130,459
Shares Value +
Leica Camera AG 7,400x $127,622
Rinol AG 140,600 3,989,207
Sto AG - O.S. Vorzugs 1,925 674,687
----------
Total 7,633,627
----------
Ghana [0.2%]
Ashanti Goldfields Co. Ltd. - GDR 100,966 757,245
----------
Hong Kong [1.6%]
Hung Hing Printing Group 4,839,704 2,123,910
Hutchison Whampoa Ltd. 160,000 1,003,678
Johnson Electric Holdings Ltd. 244,000 702,317
Sinocan Holdings Ltd. 8,100,000 2,247,822
----------
Total 6,077,727
----------
Indonesia [0.2%]
PT Asuransi Lippo Life 620,100 23,181
PT Davomas Abadi 3,780,000 706,542
----------
Total 729,723
----------
Ireland [0.2%]
Bank of Ireland 17,454 268,315
Esat Telecom Group pl - ADR * 25,749 346,002
----------
Total 614,317
----------
Israel [0.1%]
Elbit Ltd. 22,112 304,040
----------
Italy [0.5%]
Instrumentation Laboratory SpA ADR * - 225,000 464,063
Safilo SpA 60,000 1,554,111
----------
Total 2,018,174
----------
Japan [0.5%]
Canon, Inc. 27,000 629,448
Hirose Electric 6,000 306,902
Mitsubishi Corp. 100,000 789,877
----------
Total 1,726,227
----------
Latin American Region [0.1%]
Apex Silver Mines Ltd. * 15,600 198,900
----------
Malaysia [0.1%]
Nestle (Malaysia) Berhad 45,000 208,871
----------
Mexico [0.3%]
Consorcio Hogar SA de CV - Series B 56,121 130,903
*
Kimberly-Clark de Mexico SA de CV 100,000 473,945
Tubos de Acero de Mexico SA - ADR * 26,441 571,787
----------
Total 1,176,635
----------
Netherlands [1.5%]
Royal Dutch Petroleum Co. 27,000 1,463,063
Van Melle NV 46,040 3,294,739
Wolters Kluwer NV 7,000 904,797
----------
Total 5,662,599
----------
Norway [1.2%]
Atlantic Container Line AB 6,119 232,472
Kverneland Gruppen AS 45,000 732,700
Norsk Hydro AS - ADR 40,000 2,040,000
Norsk Lotteridrift AS * 435,000 1,770,692
----------
Total 4,775,864
----------
Shares Value +
Philippines [0.1%]
Cosmos Bottling Corp. 2,500,000 $ 206,250
----------
Portugal [1.2%]
Investec Consultadoria International * 116,000 3,435,870
Telecel-Comunicacoes Pessoais SA * 11,142 1,187,470
----------
Total 4,623,340
----------
Singapore [0.8%]
Electronic Resources Ltd. 3,150,000 3,206,250
----------
South Africa [0.2%]
Amalgamated Banks of South Africa 72,565 417,726
LibLife Strategic Investments Ltd. 110,000 372,019
----------
Total 789,745
----------
Spain [1.1%]
Azkoyen SA 24,252 2,563,737
Repsol SA- ADR 40,000 1,702,500
----------
Total 4,266,237
----------
Sweden [2.4%]
Investment AB Bure 215,000 2,832,157
Investor AB - Class B 21,000 1,024,455
IRO AB 128,900 1,884,835
Nobel Biocare AB 255,200 3,345,620
----------
Total 9,087,067
----------
Switzerland [3.0%]
ABB Ag Namen * 3,700 934,881
Logitech International SA * 8,050 1,240,242
Nestle SA - ADR 10,000 750,402
Pubigroupe SA 5,521 1,205,970
Selecta Group (The) * 25,500 3,422,350
SGS Societe Generale de Surveillance
Holding SA - Class R 2,700 989,113
Stratec Holding AG * 2,200 2,952,616
----------
Total 11,495,574
----------
Thailand [0.0%] +++
The Siam Cement Co., Ltd. 15,000 122,581
----------
United Kingdom [4.4%]
Billiton plc * 200,100 513,617
British Steel plc - ADR 15,000 321,563
JBA Holdings plc 175,000 2,981,136
McBride plc 1,850,000 5,389,500
Powerscreen International plc 90,000 905,012
Premier Oil plc * 615,892 539,583
Railtrack Group plc 32,000 509,307
Rentokil Initial plc 200,000 886,910
Rio Tinto plc * 60,000 739,667
Storehouse plc 70,000 271,903
Victrex plc 997,500 3,858,195
----------
Total 16,916,393
----------
Total Foreign Common Stocks
(Cost $111,861,548) 107,795,353
----------
Total Common Stocks
(Cost $170,569,130) 170,361,950
----------
Face Amount Value +
U.S. Fixed Income Securities [18.0%]
Asset-Backed Securities [1.9%]
Amerus Home Equity Loan Trust, Ser.
1997-1, Class A1, 6.210% due 10/15/03 404,826 404,826
Money Store Home Equity Trust (The),
Ser. 1994-C, Class A2, 7.100% due
7/15/13 146,479 146,317
Bankboston Marine Asset-Backed
Trust, Ser. 1997-2, Class A1, 6.430%
due 8/25/98 231,076 230,850
Countrywide Funding (FRN), Ser.
1997-2,
Class A, 5.959% due 5/25/27 422,204 422,138
Countrywide Home Equity Loan (FRN),
Ser.
1997-C, Class A, 6.160% due
9/15/22 364,369 364,103
Countrywide Home Equity Loan (FRN),
Ser.
1997-D, Class A, 5.888% due
12/15/23 380,000 380,000
Discover Card Trust Trust, Ser.
1997-1, Class
A, 6.070% due 2/16/05 445,000 444,697
Discover Card Trust, Ser. 1997-2,
Class A,
6.792% due 4/16/10 225,000 227,203
Equicredit Funding Trust, Ser.
1996-A, Class
A1, 6.450% due 9/15/10 214,266 214,719
First Deposit Master Trust, Ser.
1993-2, Class
A, 5.750% due 6/15/01 470,000 469,629
First USA Cr. Card Trust (FRN), Ser.
1996-2,
Class A, 5.809% due 2/10/06 445,000 446,736
Household Consumer Loan Trust (FRN),
Ser.
1997-2, Class A1, 6.16% due
11/15/07 366,875 366,875
IMC Home Equity Loan Trust (FRN),
Ser.
1997-5, Class A2, 6.059% due
9/15/07 332,936 332,823
MBNA Master Credit Card Trust (FRN),
Ser.
1996-E, Class A, 6.150% due
10/15/05 280,000 280,778
MBNA Master Credit Card Trust (FRN),
Ser.
1997-N, Class A, 5.976% due
11/15/02 460,000 460,000
Merrill Lynch Home Equity Loan
(FRN), Ser.
1997-1, Class A, 5.805% due
9/25/27 419,390 419,386
Morgan Stanley Capital (144A), Ser.
1997-
LB1, Class A2, 6.860% due
7/15/05 (a) 335,000 342,014
Providian Master Trust (FRN), Ser.
1997-3,
Class A, 6.090% due 12/15/05 470,000 470,414
Resolution Trust Corp. (FRN), Ser.
1992-C3,
Class A3, 6.838% due 8/25/23 103,934 103,999
Southern Pacific Secured Assets Corp
(FRN),
Ser. 1997-3, Class A1, 6.179%
due 9/25/27 376,040 375,454
UCFC Home Equity Loan (FRN), Ser.
1997-
C, Class A8, 6.325% due 9/15/27 317,722 317,456
Total Asset-Backed Securities
----------
(Cost $7,216,297) 7,220,417
----------
Corporate Obligations [6.8%]
Anthem Insurance (144A), 9.000% due
4/1/27 (a) 480,000 535,020
Mexico Apasco SA de CV, 9.250% due
4/20/98 (Mexico) 260,000 144,602
Archer-Daniels-Midland, 6.750% due
11/30/02 835,000 836,279
AT&T Corp. (FRN), 5.460% due 4/26/99 570,000 566,886
Avon Energy Partners (144A), 7.050%
due 580,000 589,803
12/11/07 (United Kingdom) (a)
Bangkok Bank Public Co., 3.250% due
3/3/04 (Thailand) 500,000 167,500
Bank of Nova Scotia, 6.500% due
7/15/07(Canada) 790,000 816,012
Bankers Trust, 6.700% due 10/1/07 190,000 191,949
Bear Stearns Co., Inc. (FRN), 6.093%
due 3/7/01 400,000 399,644
Face Amount Value +
Beneficial Corp. (FRN), 6.05% due
1/9/01 $275,000 $275,000
Bladex Floating Rate (Panama) due
9/9/02 345,000 344,196
Brazil Copel, 0.000% due 3/4/98
(Brazil) 150,000 148,117
Brazil Electropaolo, 0.000% due
1/30/98 (Brazil) 200,000 198,856
Brazil Globopar, 0.000% due 2/9/98
(Brazil) 200,000 198,562
CIBC Capital Funding (144A), 6.250%
due 12/17/02 (a) 475,000 474,577
Comdisco, Inc. (MTN), 5.540% due
1/26/98 460,000 459,832
Conseco Finance Trust II, 8.700% due
11/15/26 600,000 666,753
Corp. Andina de Fomento (144A),
6.625% 100,000 100,348
10/14/98 (Latin America) (a)
Corp. Andina de Fomento, 7.250% due
3/4/07 515,000 524,221
(Latin America)
Corp. Andina de Formento, 7.100% due
2/1/03 (Latin America) 785,000 796,911
Countrywide Funding (FRN), 6.195%
due 8/28/00 200,000 200,210
Empresa Nacional de Electridad,
8.125% due 2/1/97 (Chile) 245,000 256,165
First National Bank of Chicago,
8.080% due 1/5/18 720,000 821,994
Firststar Bank Milwaukee, 6.250% due
12/1/02 300,000 299,978
Florida Windstorm Underwriting
(144A), 6.850% due 8/25/07 (a) 520,000 527,731
Ford Motor Credit (FRN), 6.158% due
3/5/01 475,000 476,036
General Motors Acceptance Corp.
(FRN), 5.906% due 4/29/02 325,000 324,267
Goldman Sachs Group LP (144A),
7.800% due 7/15/02 (a) 440,000 464,565
Hero Asia BVI Co. Ltd. (144A),
9.110% due 10/15/01 (China) (a) 517,056 537,524
Humpuss Funding Corp. (144A), 7.720%
due 12/15/09 (Indonesia) (a) 676,743 697,092
IBM Corp., 7.125% due 12/1/96 440,000 458,165
Jet Equipment Trust (144A), 9.710%
due 8/15/13 (a) 115,000 145,932
Kern River Funding Corp. (144A),
6.720% due 9/30/01 (a) 790,000 805,772
Lehman Brothers Holdings, Inc.
(FRN), 6.480% due 1/15/02 355,000 355,096
Monsanto Co., 6.750% due 12/15/27 410,000 405,075
Mutual Life Insurance Co. - NY
(144A), 0.000% due 8/15/24(a) (b) 800,000 1,007,825
New Plan Realty Trust (MTN), 7.970%
due 8/14/26 380,000 421,398
Northwest Airlines Corp., 7.068% due
7/2/17 370,000 387,931
Northwest Airlines Corp., 7.248% due
7/2/14 320,000 328,496
Oil Purchase Co. (144A), 7.100% due
4/30/02 (Colombia) (a) 605,000 605,271
Perez Companc SA (144A), 8.125% due
7/15/07 (Argentina) (a) 435,000 415,969
Petrozuata Finance, Inc. (144A),
8.220% due 430,000 449,992
4/1/17 (Venezuela) (a)
PNC Bank N.A. Corp. (FRN), 6.043%
due 445,000 443,928
8/15/02
Prime Property II (144A), 6.800% due
8/15/02 (a) 615,000 622,180
Ras Laffan-Lincs 1997-11 (144A),
7.850% due 3/18/14 (a) 880,000 985,736
(d)
Rayonier, Inc. (FRN), 6.196% due 405,000 405,720
9/21/98
Resolution Trust Corp. (FRN), 6.657%
due 12/25/20 45,614 45,457
Salomon, Inc., 6.750% due 2/15/03 655,000 664,298
Face Amount Value +
Sithe/ Independence Funding, Ser. A,
9.000% due 12/30/13 $ 380,000 $ 454,905
Southwest Airlines, 9.250% due
2/15/98 150,000 150,506
Tarkett International, 9.000% due
3/1/02 (Germany) 950,000 1,008,547
Taubman Realty Group, 7.500% due
6/15/02 280,000 290,396
Times Mirror Co., 6.610% due 9/15/27 355,000 364,002
Total Access Communication, 2.000%
due 5/15/06 (Taiwan) 530,000 519,605
United Illuminating Co., 7.830% due
1/2/19 415,000 424,596
Van Kampen CLO I Ltd. FRN (144A),
6.819% due 10/8/07 (a) 350,000 348,433
YPF Sociedad Anonima, 7.500% due
10/26/02 (Argentina) 461,458 474,761
Total Corporate Obligations
----------
(Cost $25,884,676) 26,030,622
----------
Mortgage-Backed Securities [5.8%]
FHLMC, 5.500% due 10/15/02 1,913,001 1,908,467
FHLMC, 5.750% due 11/15/13 131,146 130,864
FHLMC, 8.500% due 6/1/10 290,985 302,636
FHLMC, Ser. 1541, Class D, 5.500%
due 1/15/14 557,000 555,535
FHLMC, Ser. 1542, Class E, 5.650%
due 1/15/15 597,407 596,081
FHLMC, Ser. 1734, Class C, 6.000%
due 2/15/03 515,474 514,891
FNMA (TBA), 6.500% due 2/20/13 3,400,000 3,404,250
FNMA (TBA), 7.000% due 2/14/98 3,505,000 3,530,192
FNMA (TBA), 7.500% due 2/11/98 3,600,000 3,684,375
FNMA (TBA), 6.500% due 2/26/98 3,345,000 3,354,408
FNMA, 7.400% due 7/1/04 1,650,000 1,772,324
FNMA, Ser. 1993-167, Class CA,
5.500% due 4/25/14 386,446 384,734
FNMA, Ser. 1993-245, Class PC,
5.000% due 7/25/13 199,041 198,272
FNMA, Ser. 1993-30, Class PD, 5.750%
due 11/25/12 221,601 220,797
GNMA (TBA), 7.000% due 2/19/28 1,480,000 1,492,025
Total Mortgage-Backed Securities
----------
(Cost $21,909,361) 22,049,851
----------
U.S. Treasuries [3.5%]
U.S. Treasury Bond, 8.000% due
11/15/21 100,000 124,656
U.S. Treasury Note 6.250% due 2/15/03 5,020,000 5,134,516
U.S. Treasury Note, 5.750% due
11/30/02 150,000 150,141
U.S. Treasury Note, 6.125% due
8/15/07 990,000 1,017,534
U.S. Treasury Note, 6.250% due
6/30/02 4,690,000 4,785,263
U.S. Treasury Note, 6.375% due
8/15/27 2,165,000 2,282,722
Total U.S. Treasuries
----------
(Cost $13,357,853) 13,494,832
----------
Total U.S. Fixed Income Securities
(Cost $68,368,187) 68,795,722
----------
Preferred Stocks [0.2%]
Duke Realty Investments, Inc.
7.990% due
10/1/12
Total Preferred Stocks (Cost
$676,000) 13,520 702,195
----------
Warrants [0.0%] +++
Electronic Resources Ltd. expiring
7/17/07
(Singapore) *
Total Warrants (Cost $33,048) 314,083 186,954
----------
Shares Value +
Rights [0.0%] +++
Chauvco Resources International Ltd.
expiring 1/8/98 (Canada) 50,000 $ 41,987
Queenstake Resources Ltd. Expiring
9/11/98 (Canada) * 187,500 0
----------
Total Rights (Cost $300,941) 41,987
----------
Investment Companies [16.4%]
Atlantis Japan Growth Fund * 61,000 228,750
Euro-Partners Arbitrage Fund * 10,069 18,969,266
GMO Currency Hedged International
Bond Fund ** 105,993 1,111,871
GMO Currency Hedged Int'l Core III **
159,861 1,747,280
GMO Emerging Country Debt III ** 136,369 1,555,974
GMO Emerging Markets Stock Fund ** 678,731 6,468,304
GMO Global Hedged Equity Fund ** 313,302 2,744,528
GMO International Bond Fund ** 787,546 8,119,602
GMO International Core III ** 668,824 14,179,076
GMO International Small Companies ** 109,649 1,216,013
GMO Japan Fund ** 426,301 2,464,020
GMO REIT Fund ** 119,088 1,601,737
GMO Small Cap Growth III ** 65,002 741,668
GMO Small Cap Value Fund III ** 45,197 774,676
GMO U.S. Core Fund ** 7,501 138,621
GMO Value Fund III ** 35,987 485,827
S & P 500 Depositary Receipt 665 64,547
Total Investment Companies
----------
(Cost $67,586,927) 62,611,760
----------
Limited Partnerships [18.0%]
Concentric Capital L.P.* (c) (e) 9,845 9,948,364
Daystar Partners L.P.* (c) (e) 14,488 14,621,934
Farallon Capital Partners L.P.* (c)
(e) 6,234 9,527,291
Lone Redwood L.P.* (c) (e) 40,000 4,000,000
Pomboy Capital L.P.* (c) (e) 6,489 2,419,236
The Value Realization Fund L.P.* (c) 2,078,619 28,078,660
Total Limited Partnerships
----------
(Cost $69,209,866) 68,595,485
----------
Total Long-Term Investments
(Cost $376,744,099) 371,296,053
----------
Face Amount
Short-Term Investments [9.6%]
U.S. Treasuries [0.2%] ++
U.S. Treasury Bill, 4.990% due $
6/4/98 195,000 190,666
U.S. Treasury Bill, 5.380% due
4/2/98 765,000 755,035
----------
Total U.S. Treasuries (Cost 945,701
$945,695)
----------
Repurchase Agreement [9.4%]
Investors Bank & Trust Company
Repurchase Agreement, 5.900% due 1/2/98;
Issued 12/31/97; Proceeds 35,815,153
(Collateralized by $16,000,000
FHLMC LBR FLTR, 7.175% due 12/15/23
with a market value of $16,445,902;
$13,948,535 FNMA LBR FLTR, 6.775%
due 9/18/27 with a market value
of $14,034,968; $6,880,692 GNMA
ARM, 7.375% due 6/20/26 with a
market value of $ 7,113,299)(Cost
$35,803,417) 35,803,417 35,803,417
----------
Shares Value +
Total Short-Term Investments
(Cost $36,749,112) $ 36,749,118
-----------
Total Investments [106.7%]
(Cost $413,493,211) 408,045,171
Other assets and liabilities, net
[(6.7)%] (25,727,773)
Net Assets - 100.0% $382,317,398
Short-Portfolio [(1.4%)]
Common Stocks [(1.4%)]
Foreign Common Stocks [(0.6%)]
Finland [(0.1%)]
Metra Oy - "B" Shares 17,290 406,510
-----------
Italy [(0.1%)]
Bulgari SpA 93,000 473,483
-----------
Spain [(0.1%)]
Acerinox SA 3,500 517,072
-----------
Sweden [(0.2%)]
WM-Data AB 33,915 613,488
-----------
Switzerland [(0.1%)]
ESEC Holding AG 114 303,657
-----------
U.S. Common Stocks [(0.8%)]
Aerospace [(0.1%)]
United Technologies Corp. 5,007 364,572
-----------
Chemicals [(0.1%)]
Cabot Corp. 14,166 391,336
-----------
Electronics [(0.2%)]
Powerwave Technologies, Inc. * 12,468 209,618
Ultratech Stepper, Inc. * 23,655 470,143
-----------
Total 679,761
-----------
Financial [(0.2%)]
Sirrom Capital Corp. 15,000 781,875
-----------
Manufacturing [(0.1%)]
Nike, Inc. - Class B 8,983 352,583
-----------
Retail (Other) [(0.1%)]
Toys "R" Us, Inc. * 18,078 568,327
----------
Total Short Portfolio
(Proceeds $5,433,579) $ 5,452,664
===========
+ See Note 2 to the Financial Statements.
++ Assets currently held with a broker as initial margin
for financial futures contracts. See Appendix C
to notes to the Financial Statements.
+++ Rounds to less than 0.0%.
++++ Shares held round to less than 1.
* Non-income producing security.
** Deemed to be an investment in an affiliate.
ADR American Depositary Receipt
ARM Adjustable Rate Mortgage
FHLMC Federal Home Loan Mortgage Corporation
FNMA Federal National Mortgage Association
FRN Floating Rate Note. Rate shown is the coupon rate
at December 31, 1997
GDR Global Depository Receipt
GNMA Government National Mortgage Association
MTN Medium Term Note
TBA Security is subject to delayed delivery.
(a) Security exempt from registration under Rule
144A of the Securities Act of 1933. These
securities may be resold in transactions exempt
from registration, normally to qualified buyers.
At December 31, 1997, the aggregate value of the
securities is $9,655,784 or 2.5% of net assets.
(b) Security is a step up bond which will pay 11.25% until
maturity starting 8/15/99.
(c) Security is fair valued in good faith under procedures
established by the Board of Directors of the Fund.
(d) Coupon rate is 7.85% through September 2006, and 8.05%
thereafter.
(e) Deemed to be a restricted security.
See Notes to the Financial Statements.
Graph
===============================================================================
TIFF International Equity Fund
December 31, 1997
===============================================================================
Policy Considerations: The Fund is designed as a core
vehicle for that portion of a Member's assets committed to
foreign stocks. Its benchmark comprises virtually all
non-U.S. markets, thereby permitting governing boards to
delegate to the Fund's managers responsibility for
determining how monies earmarked for foreign bourses should
be allocated between developed versus emerging markets.
(The Fund's emerging markets exposure is normally 15% but
may range as low as zero or as high as 30%, the Fund is very
well-diversified across countries and currencies, an
unsurprising fact in light of the diversity of managers and
investment approaches that the Fund employs.)
Performance Evaluation: The Fund has materially outperformed
its primary benchmark (the MSCI All Country World ex US
Index) since inception (30.2% net of fees vs. 19.0%). Since
inception, the Fund has also outperformed the average
international equity fund by 390 basis points (Lipper
data). This is pleasing because, in theory, diversification
reduces rather than enhances returns, and the Fund's use of
multiple managers causes the Fund to be more diversified
than the average foreign stock fund. Happily, all of the
Fund's managers have outperformed their benchmarks since
being retained by the Fund, despite some backsliding that
caused the overall Fund to lag its benchmark by 1.2% during
fourth quarter 1997. The Fund remains overweighted in
European stocks due partly to its use of European small
company specialist Ms. Consuelo Brooke (of Mercury Asset
Management), but mostly to its other managers' collective
preference for European stocks over competing alternatives.
This tilt toward Europe, and away from Asia, has been well
rewarded and will likely shrink but not be reversed over the
near and medium term.
Investment Performance (For Periods Ended December 31, 1997)
Total Return
Year Cumulative since Annualized since
Ended Inception (5/31/94) Inception (5/31/94)
TIFF International Equity Fund 0.9% 30.2% 7.5%
MSCI All Country World ex US 1.7% 19.0% 5.0%
===============================================================================
TIFF International Equity Fund / Schedule of Investments
December 31, 1997
===============================================================================
Long-Term Investments [93.9%] Shares Value +
Common Stocks [80.4%]
Europe [54.8%]
Belgium [0.4%]
Electrabel SA 4,100 $948,982
-----------
Denmark [0.4%]
Bang & Olufsen Holding AS - Series B * 6,000 357,524
De Sammensluttede Vognmano AS 150 111,726
Falck AS 3,750 173,887
Spar Nord Holding AS 4,548 265,523
-----------
Total 908,660
-----------
Finland [2.6%]
Benefon OY 55,000 627,365
Konecranes International 8,700 284,226
Metra OY - "B" Shares 3,000 70,534
Metsa-Serla OY - Class B 50,000 390,324
Nokia AB 4,400 307,924
Nokian Renkaat OY 6,333 201,243
Outokumpo OY 18,800 222,732
Hartwall AB 40,000 3,306,271
UPM-Kymmeme OY 18,000 363,690
Valmet Corp. OY - Class A 28,500 393,143
-----------
Total 6,167,452
-----------
France [5.4%]
ADA * 3,000 186,908
Alcatel Alsthom 4,115 523,006
Arkopharma * 1,422 71,797
Atos * 12,750 1,643,795
AXA Co. 3,301 255,404
Banque Nationale de Paris 7,342 390,215
Boiron SA 1,450 79,016
Carrefour Supermarche 498 259,797
CIPE France SA 5,970 201,744
Clarins 1,657 127,186
Compagnie de Saint-Gobain 6,061 860,966
Cie Generale des Eaux 2,600 362,851
Dassault Systemes SA 7,186 219,078
Societe National Elf 4,023 467,868
Financiere et Industrielle Gaz et 2,743 1,182,603
Eaux
Genset- Sponsored ADR 300 5,925
Genset SA 1,500 89,716
Grand Optical Photoservice 5,260 216,377
Lectra Systemes * 50,000 210,168
M6 Metropole Television 1,000 109,487
Michelin (CGDE) - Class B 37,395 1,882,486
NRJ SA * 1,000 139,226
Pechiney SA - A Shares 18,573 733,169
PixTech, Inc. 25,000 57,813
Primagaz Cie 2,410 201,401
Schneider SA * 10,000 542,947
Scor SA * 7,000 334,707
Serp Recyclage SA 2,666 121,806
Societe Generale 3,815 519,737
Sodexho SA 380 203,479
Ste. Guilbert SA 2,071 295,218
Union du Credit-Bail Immobilier 1,375 137,294
Usinor Sacilor 34,400 496,654
-----------
Total 13,129,844
-----------
Shares Value +
Germany [5.9%]
Adidas AG 5,000 $658,136
Allianz AG 1,200 311,099
Bayer AG 57,300 2,142,175
Bayerische Motoren Werke (BMW) AG 430 219,844
Buderus AG * 800 358,720
Daimler-Benz AG 16,600 1,165,463
Deutsche Bank AG * 29,700 2,098,414
Fresenius Medical Care AG - ADR 16,680 360,705
Hoechst AG 7,000 245,341
LOESCH Umweltschutz AG 4,010 99,274
Mannesmann AG 600 303,421
Marschollek, Lautenschlaeger AG 1,610 420,974
Metro AG 9,600 344,478
Pfeiffer Vacuum Technology AG - ADR 105,600 2,963,400
Rhoen-Klinikum AG 1,220 119,455
Rhoen-Klinikum AG- Vorzugsakt * 720 70,097
Rinol AG 5,000 141,864
RWE AG 15,600 837,497
Siemens AG 12,200 722,837
SKW Trostberg AG 8,000 254,131
VEBA AG 5,000 340,751
-----------
Total 14,178,076
-----------
Greece [0.0%] +++
Attica Enterprises SA 8,350 93,255
Goody's SA 100 1,758
-----------
Total 95,013
-----------
Ireland [0.8%]
Diageo plc 86,000 788,419
Independent Newspapers plc 50,000 274,139
IONA Technologies plc 5,800 118,900
Irish Continental Group plc 20,270 248,252
Unidare plc 50,000 147,750
Waterford Wedgewood Units 170,000 229,992
-----------
Total 1,807,452
-----------
Italy [1.7%]
Banca Fideuram SpA 60,000 266,950
Banca Popolare Commercio e Industria 14,000 233,630
Banco Popolare di Milano (BPM) 60,000 376,071
Brembo SpA 12,500 118,300
Bulgari SpA 57,006 290,230
Credito Italiano SpA 90,000 278,591
Ente Nazionale Idrocarburi SpA (ENI) 49,500 282,873
Fila Holding SpA - ADR 5,000 100,625
Gewiss SpA 9,000 170,556
Gucci Group NV 800 33,500
Industrie Natuzzi SpA - ADR 23,600 486,750
Luxottica Group SpA - ADR 14,400 900,000
Rinascente SpA 35,922 268,031
Telecom Italia SpA 92,300 405,854
-----------
Total 4,211,961
-----------
Netherlands [5.0%]
Aalberts Industries NV * 12,765 337,048
Benckiser NV 11,000 455,483
CSM NV 5,000 222,091
Draka Holding NV 7,286 315,719
Elsevier NV 33,000 534,202
Hagemeyer NV * 1,018 42,555
IHC Caland NV 23,455 1,217,780
ING Groep NV 45,015 1,897,265
Internatio-Muller NV 10,578 333,075
Koninklijke Boskalis Westminster NV* 7,701 136,826
Koninklijke Nedlloyd Groep NV 15,600 354,161
GTI Holding NV 3,613 90,584
Shares Value +
Philips Electronics NV 6,400 $ 384,088
Polygram NV * 9,400 450,005
Royal Dutch Petroleum Co. 16,400 900,859
Royal Dutch Petroleum Co.- ADR 42,400 2,297,550
Van Melle NV 6,500 465,156
Wolters Kluwer NV 12,600 1,628,635
-----------
Total 12,063,082
-----------
Norway [1.0%]
Dolphin Interconn 8,333 74,997
Fokus Bank AS - Class A 14,800 137,558
Norsk Lotteridrift ASA * 253,600 1,032,293
Schibsted Gruppen AS * 24,700 423,956
Sensonor AS * 37,000 112,958
System Etikettering AS 10,000 100,407
Tomra Systems AS 11,603 259,769
UNI Storebrand AS * 36,000 254,003
-----------
Total 2,395,941
-----------
Spain [3.3%]
Acerinox SA 2,500 369,337
Azkoyen SA 21,250 2,246,389
Banco Central Hispanoamericano SA 18,400 448,221
Banco Intercontinental Espanol
(Bankinter) 33,000 1,872,095
Baron de Ley SA 10,000 189,100
Centros Comerciales Pryca SA 15,900 236,986
Compania Espanola de Petroleos SA 4,000 120,814
Grupo Acciona SA 3,000 489,691
Hidroelectrica del Cantabrico SA - 2,500 109,652
Class C
Iberdrola SA 47,400 624,012
Prosegur, CIA de Seguridad SA 30,000 301,379
Telefonica de Espana (Ordinary 18,400 525,542
Shares)
Viscofan Industria Navarra de
Envolturas 17,500 439,511
Celulosicas SA *
-----------
Total 7,972,729
-----------
Sweden [5.5%]
ABB AB - Class B * 30,000 353,586
Allgon AB - Class B 5,646 76,153
Assa Abloy AB - Class B 9,482 251,005
Avesta - Sheffield * 21,000 138,976
Bilia AB - "A" Shares * 4,784 66,336
Biora AB 12,313 127,274
BT Industries AB 28,000 561,200
Dahl International AB 7,937 117,059
Diligentia AB 9,990 133,485
Electrolux AB - Series B 7,000 486,197
Elekta Instrument AB * 8,439 98,932
Hemkoepskedjian AB - "B" Shares 15,000 185,302
Hennes & Mauritz AB 7,500 330,896
Hoganas B - Class B 9,000 275,684
Investment AB Bure 162,525 2,140,913
Investor AB - Class B 47,000 2,292,827
IRO AB 111,550 1,631,136
Munksjo AB * 30,000 285,516
Nobel Biocare AB * 160,250 2,100,845
OM Gruppen AB 9,500 346,086
SSAB Svenskt Stal AB - Class A 14,800 242,531
Stora Kopparbergs Bergslags - "A" 30,000 378,167
Shares
Svenska Handelsbanken - Class A 6,000 207,614
Telefonaktiebolaget LM Ericsson AB -
Cl. B 8,720 328,113
-----------
Total 13,155,833
-----------
Switzerland [7.7%]
ABB AG Namen 7,650 1,932,929
Hero AG * 500 67,447
Keramik Holding AG * 150 59,059
Shares Value +
Kuoni Reisen AG * 54 $202,445
Logitech International SA - 11,000 1,694,741
Registered Shares
Nestle SA- ADR 28,600 2,146,150
Novartis AG 1,127 1,835,890
Phoenix Mecano AG 300 153,040
Publicitas Holding SA - Class R 15,200 3,320,186
Sarna Kunststoff Holding AG 150 199,260
Selecta Group (The) 14,500 1,946,042
SGS Societe Generale de Surveillance
Holding SA - Class B 250 479,321
SGS Societe Generale de Surveillance
Holding SA - Class R 3,800 1,392,084
SMH AG (Societe Suisse pour la
Microelectronique et l'Horlogerie) 4,200 566,557
Stratec Holding AG 1,825 2,449,329
Zehnder Holding AG - Class B * 250 102,369
-----------
Total 18,546,849
-----------
United Kingdom [15.0%]
Abbot Group plc 35,000 96,779
Airtours plc 20,000 408,183
Associated British Foods plc 80,000 697,862
Associated British Ports Holdings plc 72,400 358,681
Barclays plc 18,600 496,184
Bass plc 56,000 872,891
Bemrose Corp. plc 24,000 173,807
Berisford plc 225,000 692,512
BG plc 81,176 366,087
Biocompatibiles International plc * 9,500 78,962
Blue Circle Industries plc 99,170 557,410
Boots Co. plc 63,600 917,514
British Aerospace plc 12,000 342,676
British Airways plc 81,000 746,580
BTG plc 30,000 333,295
Capita Group plc 76,800 468,963
Centrica plc * 92,000 135,523
Clubhaus plc * 19,500 26,157
Cobham plc 15,000 206,149
Cowie Group plc 64,882 366,287
Dalgety plc 150,000 681,403
Devro International plc 60,000 372,303
EMI Group plc 30,600 255,852
Expro International Group plc 25,000 222,197
F.I. Group plc 19,000 292,394
First Leisure Corp. plc 64,700 318,937
Flextech plc * 55,000 472,538
GKN plc 43,000 882,548
Glaxo Wellcome plc 24,700 590,081
Glaxo Wellcome plc - ADR 25,000 1,196,875
Goode Durrant plc 50,000 399,954
Granada Group plc 31,900 488,289
Great Universal Stores plc 47,000 593,330
Halma plc 80,000 151,423
Hanson plc 104,450 466,962
Hyder plc 30,165 480,598
Jarvis Porter Group plc 45,217 153,683
JBA Holdings plc 165,000 2,810,786
Ladbroke Group plc 85,000 369,340
LucasVariety plc 100,000 353,869
Mackie International Group plc 32,812 7,881
Manchester United plc 160,000 421,350
Mentmore Abbey plc 57,500 50,632
Nan E D & F Group plc 80,000 327,863
Oxford Molecular Group plc * 22,857 91,041
Pace Micro Technology plc 100,000 77,357
Provident Financial plc 42,000 553,022
Psion plc 22,500 166,647
Racal Electronic plc 80,000 351,564
Railtrack Group plc 114,000 1,814,407
Shares Value +
Rentokil Initial plc 482,000 $2,137,452
Rio Tinto plc * 132,400 1,632,200
Select Appointments Holdings plc 26,630 245,450
Serco Group plc 35,000 501,177
Seton Healthcare Group plc 48,000 405,286
Stagecoach Holdings plc 43,333 595,537
Taylor Woodrow plc 338,900 992,877
Thorn plc * 164,571 410,364
Thorn plc- Class B * 192,000 60,042
Toad plc 171,111 76,041
Trinity Holdings plc 65,800 335,731
Unigate plc 85,000 840,808
Vendome Luxury Group Units plc 37,100 293,102
Verity Group plc 75,000 85,175
Victrex plc 600,000 2,320,719
Vodafone Group plc 36,700 265,176
Waste Recycling Group plc 15,000 83,200
Williams Holdings plc 103,333 574,856
WPP Group plc 119,100 525,352
-----------
Total 36,138,173
-----------
General Europe [0.1%]
Central European Media Enterprises Ltd. 10,300 260,075
-----------
Total Europe (Cost $101,789,416) 131,980,122
-----------
Pacific [18.0%]
Australia [3.5%]
Amcor Ltd. 118,000 519,159
Australia & New Zealand Banking
Group Ltd. 206,414 1,364,242
Australian National Industries Ltd. 252,080 231,671
Boral Ltd. 189,650 479,622
CSR Ltd. 245,191 831,041
Eastern Aluminum Ltd. 116,000 98,291
Foster's Brewing Group Ltd. 336,056 639,347
Gio Australian Holdings Ltd. 291,297 744,850
National Australia Bank Ltd. 69,181 966,325
Pasminco Ltd. 160,000 183,547
QNI Ltd. 178,000 118,341
Renison Goldfields Consolidated Ltd. 123,386 188,190
Santos Ltd. 225,000 926,860
Telstra Corp. Ltd. * 81,506 172,127
Wesfarmers Ltd. 41,232 345,398
Woolworths Ltd. 178,456 596,709
-----------
Total 8,405,720
-----------
Hong Kong [2.9%]
Cathay Pacific Airways Ltd. * 31,000 25,208
Hong Kong & China Gas Co., Ltd. 453,120 877,289
Hong Kong Electric Holdings Ltd. 240,000 912,294
Hutchison Whampoa Ltd. 274,000 1,718,800
Jardine Strategic Holdings Ltd. 230,812 609,344
Johnson Electric Holdings Ltd. 450,000 1,295,257
Joyce Boutique Holdings 812,500 34,608
Mandarin Oriental International Ltd. 335,222 224,599
National Mutual Asia Ltd. 177,000 175,915
Television Broadcasts Ltd. * 194,000 553,391
Wharf (Holdings) Ltd. 231,000 506,873
-----------
Total 6,933,578
-----------
Japan [9.4%]
Amano Corp. 23,000 176,380
Brother Industries Ltd. 95,000 217,101
Canon, Inc. 80,000 1,865,030
Chiyoda Fire & Marine Insurance Co. 63,000 188,420
CSK Corp. 6,000 153,681
Dai-Ichi Kangyo Bank Ltd. * 18,000 106,288
Shares Value +
Daiichi Pharmaceutical Co. Ltd 8,000 $ 90,184
East Japan Railway Co. 120 542,025
Eisai Co. Ltd 29,000 442,561
Fijitsu Denso 20 219
Fuji Oil 44,000 144,755
Furkukawa Electric 86,000 368,666
Gakken 56,000 78,589
Heiwa 8,000 69,325
Hirose Electric 19,000 971,856
Hitachi Ltd. * 165,000 1,176,764
Intec 20,000 112,730
Ishikawajima-Harima Heavy Industries 145,000 216,833
Japan Tobacco, Inc. 44 312,454
Kao Corp. 60,000 865,031
Kawasho 60,000 78,221
Kirin Beverage Corp. 20,000 331,288
Koito Manufacturing Co., Ltd. 32,000 127,607
Kurita Water Industries 59,000 601,764
Kyokuto Boeki 7,000 14,709
Matsushita Electric Industries Co. 37,000 541,948
Mitsubishi Corp. 122,000 963,650
Mitsubishi Heavy Industries Ltd. 216,000 901,104
Mitsui & Co. 56,000 331,534
Namco 14,000 406,902
Nichimo (Builder) 40,000 37,423
Nippon Oil Co. Ltd. 96,000 248,098
Nippon Telegraph and Telephone Corp. 88 755,828
Nippondenso Co. Ltd. 62,000 1,117,331
Nomura Securities Co. Ltd. 18,000 240,184
Noritake Co. Ltd. 24,000 114,479
Roland 12,000 220,859
Sankyo Seiko 46,000 82,899
Sanwa Bank Ltd. 52,000 526,380
Secom Co. Ltd. 3,000 191,871
Shiseido Co. Ltd. 44,000 600,613
Showa Aircraft Industry 11,000 34,417
Showa Shell Sekiyu K.K. * 32,000 160,736
Sony Corp. 12,000 1,067,485
Stanley Electric Co., Ltd. 60,000 165,644
Sumitomo Metal Industries 200,000 256,135
Sumitomo Realty & Development 75,000 431,365
Sumitomo Rubber Industries 50,000 211,273
Sumitomo Trust & Banking 86,000 447,147
Sumitomo Warehouse 28,000 100,061
Toho Co. 22 2,345
Tokio Marine & Fire Insurance Co. 48,000 544,785
Tokyo Broadcasting System 34,000 430,215
Tokyo Electric Power 36,000 657,055
Tokyo Gas Co. 160,000 363,190
Torii Pharmaceutical Co. Ltd. 11,700 197,393
West Japan Railway Co. * 205 653,988
Yamaha Motor Co. Ltd. 34,000 228,144
Yasuda Fire & Marine Insurance * 36,000 154,049
Yushiro Chemical Industry 20,000 84,356
-----------
Total 22,723,367
-----------
New Zealand [0.5%]
Carter Holt Harvey Ltd. 225,000 347,729
Telecom Corp. of New Zealand Ltd. 143,000 693,743
Wrightson Ltd. * 527,400 245,136
-----------
Total 1,286,608
-----------
Singapore [1.7%]
Acer Computer International Ltd. 240,000 220,800
Courts (Singapore) Ltd. 450,000 133,929
Development Bank of Singapore 128,500 1,101,429
Electronic Resources Ltd. 1,950,000 1,984,821
Jardine Matheson Holdings Ltd. 35,191 179,474
Jurong Shipyard Ltd. 46,000 219,048
Shares Value +
Overseas Union Enterprise Ltd. 50,000 $ 120,238
-----------
Total 3,959,739
-----------
Total Pacific (Cost $50,568,983) 43,309,012
-----------
North America [3.1%]
Canada [2.4%]
Air Canada, Inc. * 70,000 722,533
Avenor, Inc. 16,000 227,852
British Columbia Telecom, Inc. 1 27
Canadian Airlines Corp. * 24,000 56,429
Canadian Pacific Ltd. 26,149 712,556
Hudson's Bay Co. 26,914 599,876
Imasco Ltd. 10,000 353,394
Imperial Oil Ltd. 35,654 2,279,642
National Bank of Canada 20,153 332,827
Noranda, Inc. 1 12
Rogers Communications, Inc. - Class B* 46,000 217,285
Stelco, Inc. - Class A 27,000 178,551
-----------
Total 5,680,984
-----------
United States [0.7%]
KLA-Tencor Corp. 45,000 1,738,125
-----------
Total North America (Cost
$5,234,205) 7,419,109
-----------
Emerging Markets [4.5%]
Argentina [0.2%]
Quilmes Industrial SA 48,800 524,600
-----------
Bermuda [0.4%]
PartnerRe Holdings Ltd. 18,000 834,750
-----------
China [0.2%]
The Guangshen Railway Co. Ltd. 1,968,000 520,736
-----------
India [0.0%] +++
Shiriram Industries - GDR * 6,000 14,250
-----------
Indonesia [0.5%]
Indonesian Development Fund, Ltd. 25,400 111,760
PT Bank Danamon Indonesia 998,000 65,290
PT Citra Marga Nusaphala Persada 1,232,000 138,168
PT Davomas Abadi * 2,155,000 402,804
PT Gudang Garam 120,000 187,850
PT Hero Supermarket * 74,500 18,799
PT Lippo Bank 328,000 36,785
PT Matahari Putra Prima 1,236,000 103,963
-----------
Total 1,065,419
-----------
Korea [0.0%] +++
Cho Hung Bank Co. Ltd. - ADR 14,799 22,199
-----------
Malaysia [0.6%]
Carsberg AS 69,000 222,408
Kumpulan Guthrie Berhad 83,000 53,507
Nestle (Malaysia) Berhad 88,000 408,458
Perlis Plantations Berhad * 158,000 224,085
Resorts World Berhad 78,000 131,743
Rothmans of Pall Mall Berhad 35,000 273,014
Sime Darby Berhad 188,800 182,081
-----------
Total 1,495,296
-----------
Mexico [1.3%]
Grupo Financiero Banamex Accival SA
de CV 168,000 502,333
Shares Value +
Grupo Financiero Banamex Accival SA
de CV - Class L 5,040 $13,006
Grupo Televisa SA - GDR * 10,350 400,416
Kimberly-Clark de Mexico SA de CV * 235,000 1,113,772
Telefonos de Mexico SA - Class L ADR 15,200 852,150
Vitro Sociedad Aninima - ADR 26,000 339,625
-----------
Total 3,221,302
-----------
Peru [0.1%]
Banco Wiese - Sponsored ADR 30,000 150,000
-----------
Philippines [0.1%]
Philippine Long Distance Telephone
Co. - ADR 5,800 130,500
-----------
Portugal [0.1%]
Brisa-Auto Estradas de Portugal SA * 7,110 254,762
Telecel-Comunicacoes Pessoais SA 500 53,288
-----------
Total 308,050
-----------
South Africa [0.8%]
De Beers Consolidated Mines Ltd. -
ADR 8,800 179,850
Free State Consolidated Gold - ADR 26,700 118,481
Gencor Ltd. 95,000 157,227
LibLife Strategic Investments Ltd. 283,089 957,404
Plessey Corp. Ltd. 62,959 66,014
SA Iron & Steel Industrial Corp. Ltd. 224,566 66,483
Safmarine and Rennies Holdings Ltd. 39,500 72,276
Sappi Ltd. 26,000 130,962
South African Breweries Ltd. 2,804 69,178
South African Breweries Ltd.- ADR 7,063 174,167
Vaal Reefs Exploration & Mining
Company Ltd. - ADR * 100 384
-----------
Total 1,992,426
-----------
Thailand [0.2%]
Advanced Info Service plc 14,000 69,247
Matichon Public Co. Ltd. 21,000 20,323
Post Publishing Co., Ltd. 120,000 70,968
Thai Telephone & Communication -
Foreign Shares 209,300 17,554
The Siam Cement Co., Ltd. * 37,000 302,366
-----------
Total 480,458
-----------
Total Emerging Markets
(Cost $16,242,684) 10,759,986
-----------
Total Common Stocks
(Cost $173,835,288) 193,468,229
-----------
Preferred Stocks [0.9%]
Porsche AG (Germany) 700 1,168,289
Sto AG - O.S. Vorzugs (Germany) 2,800 981,363
-----------
Total Preferred Stocks
(Cost $1,611,194)
2,149,652
-----------
Rights [0.0%] +++
Acer Computer Int'l Ltd. expiring
7/31/01 (Singapore) * 48,000 3,286
Arkopharma Rights (France) * 1,422 6,745
Atlantis Japan Growth Fund expiring
4/30/10(Japan)* 20,000 7,200
Jardine Strategic Holdings expiring
5/2/98 (Hong Kong) * 6,812 272
Primagaz Cie expiring 6/30/98 (France)* 400 4,519
TEGE SA expiring 6/20/01(Switzerland) * 2,680 33,950
-----------
Total Rights
(Cost $18,720) 55,972
-----------
Face
Convertible Bonds [0.4%] Amount (a) Value +
Bangkok Bank Public Co., 3.250% due
3/3/04 (Thailand) $ 1,340,000 448,900
Far East Levingston Ship Convertible,
1.500% due 5/02/01 (Singapore) 500,000 411,250
Guilbert SA Convertible, 3.500% due
1/1/04 (France)* 25,000 46,727
Sumitomo Wiring Systems Convertible,
0.900% due 9/30/08 (Japan) (c) 25,000,000 153,566
-----------
Total Convertible Bonds
(Cost $2,054,905)
1,060,443
-----------
Commingled Investment Vehicles [12.2%] Units
Atlantis Japan Growth Fund (Japan) 100,000 375,000
Everest Capital Frontier Fund, L.P.
* (d) (e) 450,114 15,516,989
Investable Emerging Markets Country
Fund L.P. * (d) (e) 1,102,753 13,310,242
The First Korea Smaller Companies
Fund (Korea) 40,000 205,600
-----------
Total Commingled Investment Vehicles
(Cost $26,090,000) 29,407,831
-----------
Total Long-Term Investments
(Cost $203,610,107) 226,142,127
-----------
Face
Short-Term Investments [8.6%] Amount
(a)
U.S. Treasury Security [0.7%] ++
U.S. Treasury Bill, 5.380% due
4/2/98 # 1,765,000 1,742,009
-----------
(Cost $1,742,131)
Other Short-Term Investments [7.9%]
First National Bank of Boston (Time
Deposit), 6.850% due (b) 3/31/98 9,416,417 9,416,417
-----------
Investors Bank & Trust Repurchase
Agreement, 5.900% due 1/2/98;
Issued 12/31/97; Proceeds $9,693,264.
(Collateralized by $7,888,178
FHLMC ARM 6.549% due 4/1/27 with a
market value of $7,929,965; $2,840,000
FNMA 1993-120 6.825% due 7/25/22
with a market value of $2,249,609) 9,690,088 9,690,088
-----------
Total Other Short-Term Investments
(Cost $19,106,505) 19,106,505
-----------
Total Short-Term Investments
(Cost $20,848,636) 20,848,514
-----------
Total Investments [102.5%]
(Cost $224,458,743) 246,990,641
Other assets and liabilities, net [(2.5%)]
(5,918,743)
------------
Net Assets - 100.0% $241,071,898
* Non-income producing security.
+ See Note 2 to the Financial Statements.
++ Assets currently held with a broker as
initial margin for financial futures contracts.
See Appendix C to the Notes to the Financial Statements.
+++ Rounds to less than 0.0%.
# Interest rate represents the yield to maturity at the time of
purchase.
ADR American Depositary Receipt
ARM Adjustable Rate Mortgage
FHLMC Federal Home Loan Mortgage Corporation
FNMA Federal National Mortgage Association
GDR Global Depository Receipt
(a) Face amounts in U.S. dollars unless otherwise noted.
(b) Investment of cash collateral received for securities
on loan at December 31, 1997.
(c) Face amount noted in Japanese Yen.
(d) Security is fair valued in good faith under
procedures established by the Board of Directors of the Fund.
(e) Deemed to be a restricted security.
See Notes to the Financial Statements
Graph
===========================================================================
TIFF Emerging Markets Fund
December 31, 1997
===========================================================================
Policy Considerations: Investor perceptions of emerging
markets have proven somewhat unstable in recent years: what
was seen as a no-lose proposition in late 1993 was seen as a
no-win proposition by most investors a year later, setting
the stage for a powerful rally that lifted the TIFF Emerging
Markets Fund's since-inception return from steeply negative
territory to a respectable 15% as of mid-August 1997. The
collapse of the Thai baht then kicked off a chain of events
that has caused most Asian stock markets, as well as many
emerging bourses on other continents, to drop sharply.
Panic selling by investors belatedly discovering that their
time horizons are shorter than they had supposed has once
again created compelling opportunities in emerging markets.
But the fact that many of today's opportunities in this
heterogenuous asset class derive from reduced investor time
horizons as well as improving fundamentals makes the
short-term risks of investing in emerging markets
substantial.
Performance Evaluation: Despite forfeiting during fourth
quarter of 1997 a small portion of the large lead over the
MSCI Index that it had accumulated during the preceding
three quarters, the Fund outperformed the Index for all of
1997 by 1300 basis points. The Fund's large relative gains
during 1997 stemmed from: (1) an underweighting of Asian
stocks (especially Malaysia, which fell 68.3% in dollar
terms during 1997); (2) a material bet against South Africa,
where stocks fell 8.2% in dollar terms during the year; and
(3) an overweighting in selected countries in Eastern
Europe. The latter tilt hampered results during fourth
quarter 1997, with Russian stocks doing especially poorly,
as did the Fund's overweighting in Hong Kong shares.
Towards year-end, the Fund retained a fifth manager:
Explorador Capital, a firm specializing in Latin American
equities.
Investment Performance (For Periods Ended December 31, 1997)
Total Return
Year Cumulative since Annualized since
Ended Inception (5/31/94) Inception (5/31/94)
TIFF Emerging Markets Fund (0.4%) (13.0%) (3.8%)
MSCI Emerging Markets Free
Index (13.4%) (16.4%) (4.9%)
(Price change only)
===============================================================================
TIFF Emerging Markets Fund / Schedule of Investments
December 31, 1997
===============================================================================
Long-Term Investments [92.0%] Shares Value +
Common Stocks [68.3%]
Latin America [24.6%]
Argentina [2.0%]
Argentina Fund, Inc. 36,000 $ 470,250
Astra Cia Argentina de Petro 5 9
Banco Galicia y Buenos Aires - Class B 2,229 14,268
Banco Rio de la Plata - ADR * 16,700 233,800
CEI Citicorp Holdings SA 19,895 79,596
Compania Naviera Perez Companc 29,680 211,957
Dragados y Construcciones
Argentina-Ser B 14,638 63,688
Inversiones y Representacion - GDR 1,456 54,782
IRSA, Inversiones y Representaciones SA 35,099 130,593
Nortel Inversora SA - ADR 2,100 53,550
YPF-Sociedad Anonima ADR 10,600 362,376
-----------
Total 1,674,869
-----------
Brazil [3.0%]
Aracruz Celulose SA - Sponsored ADR 8,400 120,750
Avipal SA - Avicultura e Agropecuaria 30,740,000 73,776
Bompreco Supermercado - GDR 6,234 115,017
Bompreco Supermercado (144A) - GDR (a) 1,446 26,691
Brazil Fund, Inc. 40,100 842,100
Brazil Realty SA (144A) - GDR (a) 4,400 90,679
Brazilian Smaller Companies Inv.
Trust plc * 250,000 236,250
Cemig Cia Energy SA - ADR 1,043 45,317
Cemig SA Energy - ADR 779 33,847
Cia Electricidade do Estado da Bahia* 1,600,000 107,527
Gerdau Metalurgica SA 104,239 2,794
Makro Atacadista SA 70,000 62,724
Makro Atacadista SA - GDS * 4,100 32,800
Telecomunicacoes Brasileiras SA - 600,000 61,022
Telebras
Telecomunicacoes Brasileiras
Telebras SA - ADR 5,770 671,844
-----------
Total 2,523,138
-----------
Chile [2.8%]
A.F.P. Provida SA - Sponsored ADR 19,200 327,600
Chilectra SA - ADR 18,100 462,317
Chilgener SA - ADR 17,935 439,408
Compania de Telecomunicaciones de
Chile SA - Sponsered ADR 20,300 606,463
Distribucion y Servicio D&S SA - ADR* 10,500 194,906
Empresa Nacional de Electric - ADR 4,800 84,900
Maderas y Sinteticos Sociedad
Anonima SA - ADR 13,500 128,250
Quimica y Minera Chile - ADR 3,100 136,400
-----------
Total 2,380,244
-----------
Colombia [1.4%]
Valores Bavaria 40,640 417,222
Cementos Paz del Rio - ADR * 6,950 107,738
Compania Colombiana de Tabaco SA 32,442 93,907
Computec SA 38,063 6,464
Exito * 51,016 169,331
Pisos Asfalto y Vinilos Colo 11,000 6,241
Suramericana de Seguros SA 18,408 348,125
-----------
Total 1,149,028
-----------
Mexico [8.9%]
Acer Computec Latino America ADR
(144A) * (a) 10,300 151,925
Cemex SA de CV * 107,380 487,602
Consorcio ARA SA de CV 45,000 218,859
Corporacion Industrial Sanluis SA de CV 16,000 130,024
Corporacion Interamericana de
Entretenimiento SA * 14,000 108,734
Cydsa SA 57,600 163,647
E.C.E. SA * 98,000 127,667
Empaques Ponderosa SA 277,000 239,196
Empresas ICA Sociedad Controladora
SA de CV - ADR * 20,600 338,613
Fomento Economico Mexicano SA de CV 34,000 271,660
Grupo Casa Autrey SA de CV 52,000 110,968
Grupo Corvi SA * UBL Shares 214,000 123,196
Shares Value +
Grupo Financiero Banorte - Series B * 308,845 $ 540,287
Grupo Industrial Durango SA - Class A* 17,000 118,958
Grupo Posadas SA - "L" Shares * 64,000 42,714
Grupo Posadas SA - GDR * 6,100 83,231
Grupo Posadas SA - Series A * 70,428 48,053
Grupo Televisa SA - GDR * 15,800 611,263
Grupo Televisa SA - Series CPO * 6,000 116,352
Grupo Tribasa SA - ADR * 39,400 233,938
Grupo Tribasa SA de CV * 74,000 220,347
Ingenieros Civiles Asociados 94,000 255,409
Mexico Fund 97,000 1,994,562
Sistema Argos SA - Series B 145,000 259,057
TV Azteca SA de CV - ADR * 8,200 185,013
Vitro S.A. 62,000 271,923
-----------
Total 7,453,198
-----------
Peru [0.5%]
Banco Wiese 17,600 23,454
Banco Wiese - Sponsored ADR 14,400 72,000
Cementos Norte Pacasmayo SA 1 1
Compania de Minas Buenaventura Class A 3,155 23,454
Compania de Minas Buenaventura Class T 13,773 81,960
CPT Telefonica del Peru SA 26,812 59,941
CPT Telefonica del Peru SA - ADR 1,700 39,631
Enrique Ferreyros SA 85,848 90,759
Sedna Geotech, Inc. * 7,031 37,264
-----------
Total 428,464
-----------
Venezuela [1.3%]
Bancaracas Mercados - Class A * 42,500 57,448
Ceramicas Carabobo - ADR 59,865 47,485
Compania Anonima Nacional Telefonos
de Venezuela - ADR * 2,400 99,900
Electricidad de Caracas 409,173 491,365
Fondo de Valores Inmobiliarios 2,224,800 203,138
International Briquettes Holding,
Inc. * 4,667 69,538
Siderurgica Venazolana Sivensa Class
B (144A) - ADR (a) 927 3,665
Siderurgica Venezolana Sivensa -
Class A 37,471 15,693
Sudamtex de Venezuela (144A) -
Sponsored ADR * (a) 2,688 23,856
Venezolana Pulpa y Papel - B Shares 521,377 81,756
Venezolana Pulpa y Papel - GDR * 10,400 16,291
-----------
Total 1,110,135
-----------
Latin American Region [4.7%]
Latin America Investment Trust Fund* 562,500 1,167,188
Latin American Discovery Fund, Inc. 10,000 179,375
Latin American Equity Fund 67,300 921,169
Morgan Grenfell Latin American Trust 1,250,000 1,640,756
plc
-----------
Total 3,908,488
-----------
Total Latin America
(Cost $18,591,721) 20,627,564
-----------
Asia [18.4%]
China [2.3%]
China Fund, Inc. 35,000 428,750
Greater China Fund, Inc. 102,500 1,114,687
Huaneng Power International, Inc. -
ADR * 9,000 208,688
Qingling Motors Co. Ltd. (144A)* (a) 254,000 124,582
Shanghai Worldbest Co., Ltd. - Class B 142,000 71,852
-----------
Total 1,948,559
-----------
Hong Kong [2.1%]
Anhui Expressway Co. Ltd. - Class H 536,000 89,939
Champion Technology Holdings 1 0
Giordano International Ltd. 296,000 102,201
Guangdong Kelon Electric Holding -
Class H 254,000 260,639
GZI Transportation Ltd 186,000 62,420
Johnson Electric Holdings Ltd. 69,400 199,757
Lung Kee (Bermuda) Holdings Ltd. 396,875 107,575
Moulin International Holdings, Ltd. 1,275,581 153,119
New World Infrastructure Ltd. * 45,000 101,355
Peak International Ltd. * 3,500 73,063
Shares Value +
Road King Infrastructure Ltd. 153,000 $ 140,213
Sinocan Holdings Ltd. 616,000 170,945
Vanda Systems & Communication
Holdings Ltd. 298,000 61,542
Varitronix International Ltd. 119,000 204,286
-----------
Total 1,727,054
-----------
Indonesia [2.2%]
Edinburgh Java Investment Trust plc 650,000 120,356
Gulf Indonesia Resources Ltd. * 5,500 121,000
Hindustan Petroleum Corp. Ltd. * 31,600 391,565
PT Astra Graphia 130,500 15,855
PT Astra International, Inc. 56,000 14,916
PT Bakrie & Brothers 235,000 18,668
PT Bank International Indonesia 134,295 8,158
PT C.P. Indonesia 102,500 5,748
PT Dharmala Sakti Sejahtera 224,000 20,935
PT Hanjaya Mandala Sampoerna 107,500 83,388
PT Indah Kiat Pulp & Paper Corp. 918,700 167,427
PT Indorama Synthetics 280,880 128,627
PT Indosat - ADR 1,500 28,969
PT Mulia Industrindo 1,035,720 120,995
PT Pabrik Kertas Tjiwi Kim - Series F 557,000 140,551
PT Pakuwon Jati 241,500 20,313
PT Petrosea 36,000 25,570
PT Putra Surya Multidana * 436,000 42,785
PT Ramayana Lestari Sentosa 76,500 73,998
PT Semen Gresik 91,500 55,157
PT Steady Safe 159,544 11,183
PT Telekomunikasi Indonesia 428,500 234,273
PT Telekomunikasi Indonesia- ADR * 2,700 29,869
-----------
Total 1,880,306
-----------
Korea [2.1%]
Dae Duck Electronics Co. 3,400 94,478
Dongah Tire Industry Co. * 4,430 100,100
Hyundai Motor Co. Ltd. * 5,750 63,437
Kookmin Bank 5,489 28,983
Korea Fund, Inc. 8,000 53,000
Korea Housing Bank 15,903 106,960
Korea Mobile Telecommunications Corp. 726 209,662
LG Information & Communication Ltd. 2,124 59,522
New Korea Trust * 116,000 377,580
Pohang Iron And Steel Co. Ltd.
Ordinary Shares 3,940 106,694
SE AH Steel * 7,157 33,779
Samsung Display Devices Co. Ltd. 3,516 24,062
Samsung Electronics Co. * 18,330 415,263
Samsung Fire & Marine Insurance 510 58,673
-----------
Total 1,732,193
-----------
Malaysia [0.8%]
IJM Corp. Berhad 71,000 23,618
Jaya Tiasa Holdings Berhad * 37,000 68,218
Malakoff Berhad 115,000 240,200
Malaysian International Shipping
Berhad 130,000 191,078
Malaysian Pacific Industries Berhad 25,000 60,276
MNI Holdings Berhad 20,000 27,334
Perlis Plantations Berhad 25,250 35,811
Public Bank Berhad - Foreign Market 69,600 24,050
Sime UEP Properties Berhad 28,000 15,018
-----------
Total 685,603
-----------
New Guinea [0.0%] #
Niugini Mining Ltd. * 10 12
-----------
Philippines [1.3%]
Ayala Land, Inc. - Series B 272,200 108,880
Belle Corporation * 342,100 13,342
Benpres Holdings Corp. - GDR * 9,580 28,812
Benpres Holdings Corp. - Sponsored 14,300 42,900
GDR *
Crown Equities, Inc. * 834,060 22,520
Equitable Banking Corp. 24,000 32,700
Filinvest Land, Inc. * 546,700 21,868
First Philippine Fund, Inc. 61,100 416,242
First Philippine Holdings Corp. 40,635 32,000
Fortune Cement Corp. 241,500 24,150
JG Summit Holding Inc. - Class B 277,500 22,894
Shares Value +
Music Corp. * 95,290 $
34,543
Philex Mining Corp. - Class B * 830,000 20,750
Philippine Long Distance Telephone
Co. - 9,900 222,750
ADR
PICOP Resources, Inc. * 1,245,000 13,073
Solid Group, Inc. 872,000 34,880
-----------
Total 1,092,304
-----------
Singapore [0.4%]
Creative Technology Ltd. * 6,700 147,400
GP Batteries International Ltd. 9,000 23,464
Roly International Holdings 225,000 85,500
Venture Manufacturing Ltd. 19,500 54,553
-----------
Total 310,917
-----------
Taiwan [3.7%]
Acer, Inc. - GDR * 16,400 125,460
China Steel Corp. - ADR 315 4,744
China Steel Corp. - GDR 414 6,107
Compal Electronics, Inc. * 109,172 311,199
Nan Ya Plastics Corp. 201,690 351,171
ROC Taiwan Fund 60,000 487,500
Siliconware Precision Industries Co. 12,432 159,129
- - GDR *
Synnex Technology International
Corp. - 3,900 73,613
GDR * (144a) (a)
Taiwan Equity Fund, Inc. 37,800 429,975
Taiwan Fund, Inc. 15,000 247,500
United Microelectronics Corp., Ltd. * 280,643 553,502
Yageo Corp. * 164,725 375,644
-----------
Total 3,125,544
-----------
Thailand [1.3%]
Alucon Public Co. Ltd. 13,500 22,645
Peregrine Strategic Investments -
Bankok Bank - Share Entitlement
Certificates 55,500 101,010
Bank of Asia, The 38,000 9,806
First Pacific Land, Ltd. * 255,858 4,402
Hana Microelectronics Public Co., Ltd. 68,100 138,397
K.R. Precision Public Co., Ltd. 30,200 118,162
KCE Electronics Public Co. Ltd. 20,600 56,704
MDX Co. Ltd. * 117,900 3,296
Precious Shipping Ltd. 73,100 48,733
PTT Exploration & Production Public
Co.Ltd. (Foreign Shares) 2,800 33,359
PTT Exploration & Production Public
Co.Ltd. * 13,100 114,101
Raimon Land Co. Ltd. * 3,400 102
Ruam Pattana Fund II * 1,916,000 201,901
Saha-Union Corp. Ltd. 61,000 37,715
Shinawatra Satellite Public Co.
Ltd. * 190,700 16,400
Shinawatra Satellite Public Co.,
Ltd. (Foreign Shares) 40,900 13,853
Siam Syntech Construction Public Co.
Ltd. * 36,300 1,093
TelecomAsia Corp. * 37,700 7,135
Peregrine Strategic Investments -
Thai Farmers Bank - Share
Entitlement Certificates 85,300 109,184
Thai Telephone & Communication -
Foreign Shares * 190,100 15,944
Thai-German Ceramic Industry Co., Ltd. * 22,300 3,117
The Thai Farmers Bank, Ltd. 11,800 22,204
-----------
Total 1,079,263
-----------
Asian Region [2.2%]
Asia Tigers Fund, Inc., The 152,800 1,126,900
Edinburgh New Tiger Trust * 1,025,000 240,404
Govett Asian Smaller Companies Fund* 240,000 398,952
Southeast Asia Frontier Fund * 4,600 32,200
-----------
Total 1,798,456
-----------
Total Asia
(Cost $27,726,973) 15,380,211
-----------
Indian Sub-Continent [7.1%]
India [5.9%]
Arvind Mills Ltd. - GDR * 70,100 150,715
Bharat Heavy Electricals Ltd. 35,100 311,501
Shares Value +
BSES, Ltd. (144A)- GDR (a) 7,600 $ 127,300
BSES, Ltd. (144A) - Sponsored GDR *(a) 500 8,500
Cipla Ltd. 4,000 64,706
Gujarat Ambuja Cements - GDR * 27,840 194,880
Hindalco Industries Ltd. - Sponsored GDR 19,920 392,175
Housing Development Finance Corp. Ltd. 2,000 157,417
India Fund, The - Class B * 1,225,000 1,854,928
Indian Hotels Co., Ltd. - GDR (Reg S)* 9,600 180,600
Industrial Credit & Investment Corp.
of India - GDR 1,900 23,608
Industrial Credit & Investment Corp.
of India Ltd. (144A) - GDR * (a) 14,200 182,896
Larsen & Toubro Ltd. - GDR 10,620 111,099
Tata Engineering & Locomotive Ltd. - GDR 41,556 345,954
Videsh Sanchar Nigam Ltd. - GDR 24,000 336,601
Bharat Petroleum Corp. Ltd. 23,000 244,853
NIIT Ltd. 13,000 226,087
-----------
Total 4,913,820
-----------
Pakistan [1.1%]
Bank of Punjab Ltd. * 1,170 499
Engro Chemicals Pakistan Ltd. * 24,995 64,836
Hub Power Co. Ltd. GDR * 67,500 87,891
Hub Power Co. Ltd. - Sponsored GDR * 4,900 152,513
Pakistan State Oil Co. Ltd. * 41,666 354,589
Pakistan Telecom Corp. - Class A * 53,900 40,726
Pakistan Telecommunications Corp. * 100 7,556
Pakistan Telecommunications Corp. - GDR * 2,700 200,018
Sui Northern Gas Pipelines * 83,200 50,859
-----------
Total 959,487
-----------
Sri Lanka [0.1%]
Aitken Spence Hotels Ltd. * 3,520 7,987
Development Financial Corp. of Ceylon * 5,400 20,655
National Development Bank * 15,221 56,678
-----------
Total 85,320
-----------
Total Indian Sub-Continent
(Cost $6,998,705) 5,958,627
-----------
Europe and Middle East [15.5%]
Croatia [0.1%]
Pliva d.d. - GDR 5,000 83,046
-----------
Czech Republic [0.8%]
CKD Praha Holding AS * 2,491 82,703
Deza Valasske Mezirici AS * 1,317 91,252
Zivnobanka - Investicni Fond * 36,798 428,130
Zivnobanka - Podilovy Fond * 4,330 43,503
-----------
Total 645,588
-----------
Egypt [0.2%]
Egypt Pharmaceuticals 1,800 126,186
MISR Elgadida for Housing and 500 66,642
Recreation *
-----------
Total 192,828
-----------
Greece [0.3%]
Attica Enterprises SA 4,115 45,957
General Construction SA 9,700 81,676
Hellenic Bottling Co., SA 1,300 30,183
Nirefs SA 5,270 42,982
Sarantis SA 4,010 51,354
-----------
Total 252,152
-----------
Hungary [0.2%]
BorsodChem Rt. * 673 24,265
Gedeon Richter Rt. 468 53,178
Mol Magyar Olay - Es Gazi (Ordinary 3,810 92,390
Shares) OTP Rt. 1,295 49,103
-----------
Total 218,936
-----------
Israel [0.6%]
Bank Hapoalim Ltd. * 35,000 84,181
ECI Telecommunications Ltd. 2,620 66,810
Elite Industries Ltd. * 700 20,862
Shares Value +
Israel Fund (The) plc * 300,000 $ 292,500
Tadiran Ltd. - Sponsored ADR 1,400 49,525
-----------
Total 513,878
-----------
Lebanon [0.1%]
Lebanon Holdings * 6,400 54,400
-----------
Lithuania [0.0%] #
Birzai Milk- GDR * 1,500 32,248
-----------
Poland [0.7%]
KGHM Polska Miedz SA * 10,073 37,201
Mostostal Gdansk SA * 5,130 25,941
Polifarb-Cieszyn SA * 35,701 169,375
Polish National Investment Fund PC * 4,993 177,308
Relpol SA * 5,208 123,542
Vistula SA * 12,222 30,902
-----------
Total 564,269
-----------
Portugal [1.1%]
Banco Commercial Portugues 1,204 24,630
Banco Espirito Santo e Comercial de
Lisboa 1,800 53,579
Cimentos de Portugal SA 1,270 33,296
Colep-Companhia Portuguesa * 2,900 40,978
Investec Consultadoria International * 1,275 37,765
Mota e Companhia SA 2,800 44,435
Mundicenter-Sociedade Imobiliaria, SA 2,474 29,527
Portugal Fund, Inc. * 37,000 585,062
Sonae Investimentos Sociedade Gestora de 690 27,915
Participacoes Sociais SA
-----------
Total 877,187
-----------
Russia [7.1%]
Fleming Russia Securities Fund * 150,000 3,187,500
Gazprom (144A) - ADR (a) 9,700 234,013
JSC Surgutneftegaz - ADR 10,500 107,322
Lukoil Oil Co. - ADR 9,700 892,400
Mosenergo - ADR * 6,600 246,752
Mosenergo - RDC (144A) - ADR (a) 7,500 280,500
New Century Fund XI LP * (d) (e) 350 310,030
Rokiskio Suris * 3,000 18,750
Global Telesystems Group (d) 8,150 191,525
Unified Energy Systems 1,524,660 461,052
-----------
Total 5,929,844
-----------
Slovakia [0.2%]
Vychodoslovenske Zeleziarne 6,912 141,009
-----------
Slovenia [0.0%] #
SKB Banka (144A)- GDR (a) 800 14,600
-----------
Turkey [0.5%]
Akbank T.A.S. 899,000 79,260
Alarko Holding AS 301,120 64,734
Enka Holding Yatirim AS 97,000 56,232
Goltas Cimento AS 147,000 27,341
Haci Omer Sabanci Holding AS * 704,000 43,362
Kartonsan Karton Sanayi AS 907,000 55,866
Otosan Otomobil Sanayii SA 62,000 51,667
Turkiye Garanti Bankasi AS 646,666 32,021
Usas Ucak Servisi AS 16,000 38,647
-----------
Total 449,130
-----------
United Kingdom [0.1%]
Lonrho plc 42,396 65,593
-----------
European Region [3.5%]
Baring Emerging Europe Trust * 320,000 504,000
Central European Growth Fund * 1,150,000 1,220,846
East Europe Development - PTG * 20,000 815,000
Julius Meinl International AG 12,690 381,835
Nelson Gold Corp. Ltd. * 81,175 17,326
-----------
Total 2,939,007
-----------
Total Europe and Middle East
(Cost $10,779,386)
12,973,715
-----------
Shares Value +
Africa [2.7%]
Botswana [0.0%] #
Sechaba Investment Trust * 39,000 $ 41,414
----------
Ghana [0.0%]
Ashanti Goldfields Co. Ltd. - GDR 42 315
-----------
South Africa [2.6%]
Amalgamated Banks of South Africa 36,300 208,962
Anglo American Corp. of South Africa
Ltd. 3,600 145,510
Barlow Ltd. 12,393 105,228
Billiton PLC * 52,989 136,177
Billiton PLC - ADR * 6,800 16,150
C.G. Sugar Ltd. * 91,300 155,045
CorpGro Ltd. 107,777 51,628
De Beers Centenary AG 4,360 88,742
Engen Ltd. 39,700 202,010
Gencor Ltd. 10,598 17,540
Gencor Ltd. - ADR 1,360 2,040
Old South Africa Trust * 250,000 400,150
Sasol Ltd. 21,442 224,824
South African Breweries Ltd. 6,509 160,584
Suncrush Ltd. 35,600 87,829
Super Group Ltd. 97,083 203,587
-----------
Total 2,206,006
-----------
Zimbabwe [0.1%]
Trans Zambezi Industries Ltd. - GDR 200,000 50,000
*
-----------
Total Africa (Cost $2,562,884) 2,297,735
-----------
Total Common Stocks (Cost $66,659,669)
57,237,852
-----------
General Emerging Markets [18.3%]
Investable Emerging Markets Country
Fund LP * (d) 495,058 5,975,351
TCW/DW Emerging Markets
Opportunities Trust 153,500 2,024,281
Everest Capital Frontier Ltd. LP *
(d) (e) 139,527 4,810,002
Explorador Fund, LP * (d) 2,559 2,484,286
-----------
Total General Emerging Markets
(Cost $13,716,343) 15,293,920
-----------
Preferred Stocks [4.4%]
Banco de Credito Nacional (Brazil) 8,900,000 77,357
Banco Nacional SA Preferred
(Brazil) * 4,900,000 0
Cia Energetica Brasilia (Brazil) 2,470,000 225,511
Cia Energetica de Minas Gerais
(Brazil) * 5,100,000 221,594
Cia Energetica do Ceara - Coelce
Series A (Brazil)* 72,800,000 247,885
Cia Riograndense Telecom (Brazil) * 448,100 552,095
Cia Tecidos Norte de Mina (Brazil) 380,000 136,201
Companhia Cimento Portland Itau
(Brazil) 1,210,000 233,109
Cosigua-Siderur Guanabara (Brazil) 12,693,103 158,664
Empresa Brasileira de Compressores
SA (Brazil) 120,000 30,096
Industrian Klabin de Papel e
Celulose SA (Brazil) 161,000 73,575
Iven SA Preferred (Brazil) 514,000 292,415
Marcopolo SA Preferred (Brazil) 818,000 96,753
Metalurgica Gerdau SA (Brazil) 3,444,591 103,399
Patroleo Brasileiro SA - Petrobras
(Brazil) 2,196,000 513,581
Philippine Long Distance Convertible
Preferred, 5.750% series Euro
(Philippines) 1,000 21,750
Sadia Concordia SA Industria e
Comercio (Brazil) 216,000 141,290
Telecommunicacoes Sao Paulo (Brazil) 811,714 216,013
Telecomunicacoes Brasileiras SA
Telebras (Brazil) 3,000,000 342,000
----------
Total Preferred Stocks
(Cost $4,138,806) 3,683,288
-----------
Rights [0.0%] #
Cia Rio Grandense de Telephone
(Brazil) *
Total Rights (Cost $3,203) 2,479 0
-----------
Units Value +
Warrants [0.1%]
Belle Corp. expiring 12/31/00
(Philippines) * 68,420 $ 107
GP Batteries International Warrants
Expiring 11/15/00 (Singapore) * 10,000 13,800
GZI Transport Ltd. Expiring 1/29/99
(Hong Kong) * 7,600 226
Innovative International Holdings
Ltd. expiring 8/31/99 (Hong Kong) * 4,400 39
Morgan Grenfell Latin American Trust
plc expiring 6/30/10 (Latin America)* 250,000 104,926
Moulin International Holdings Ltd.
expiring 10/16/99 (Hong Kong) * 58,506 876
PT Bank Int'l Indonesia expiring
1/17/00 (Indonesia) * 24,915 349
PT Indah Kiat Pulp & Paper expiring
7/11/02 (Indonesia) * 18,080 507
San Teh Ltd. expiring 8/3/00
(Singapore) * 7,536 426
Sedna Geotech, Inc. expiring
10/26/98 (Peru)* 14,062 0
Thai Farmers Bank expiring 9/15/02
(Thailand) * 1,225 134
-----------
Total Warrants (Cost $109,700) 121,390
-----------
Options [0.2%]
Brazilian $1.22 Put Option expiring
4/22/98 (Brazil) * BRL 24,400 159,100
-----------
Total Options (Cost $159,100) 159,100
-----------
Face
Amount (b)
Convertible Bonds [0.7%]
Bangkok Bank Public Co., 3.250% due
3/3/04 (Thailand) 270,000 90,450
Delta Electronics (144A), 0.500% due
3/6/04 (Taiwan) (a) 101,528 402,045
Metropolitan Bank, 2.750% due
9/10/00 (Philippines) 23,000 25,128
New World Infrastructure Ltd.
(144A), 5.000% due 7/15/01 (Hong Kong)
(a) 51,000 49,470
Nirefs SA, 6.825% due 12/6/00 270 24
(Greece)
Qingling Motors Ltd. (144A), 3.500%
due 1/22/02 (China) (a) 35,000 31,150
Siliconware Precision (144A), 0.500%
due 7/21/04 (Taiwan) (a) 25,000 24,313
-----------
Total Convertible Bonds
(Cost $673,016) 622,580
-----------
Total Long-Term Investments
(Cost $85,459,837) 77,118,130
-----------
Short-Term Investments [14.7%]
Investors Bank & Trust
Repurchase Agreement, 5.900% due 1/2/98;
Issued 12/31/97; Proceeds $8,506,069
(Collateralized by $8,000,000 FNMA
1992-39, 5.690% due 3/25/22 with
a market value of $7,905,026; $997,501
FNMA ARM 6.505% due 10/1/19 with a
market value of $1,023,796.) 8,503,282 $8,503,282
First National Bank of Boston
(Time Deposit), 6.850% due
3/31/98 (c) 3,787,835 3,787,835
-----------
Total Short-Term Investments
(Cost $12,291,117) 12,291,117
-----------
Total Investments [106.7%]
(Cost $97,750,954) 89,409,247
Other assets and liabilities, net [(6.7%)]
(5,573,211)
-----------
Net Assets - 100% $83,836,036
* Non-income producing security
# Rounds to less than 0.0%
+ See Note 2 to the Financial Statements.
ADR American Depository Receipt
ARM Adjustable Rate Mortgage
BRL Brazilian Real (in thousands)
FNMA Federal National Mortgage Association
GDR Global Depository Receipt
GDS Global Depository Share
(a) Security exempt from registration under Rule 144A of
the Securities Act of 1933. These securities may
be resold in transactions exempt from registration,
normally to qualified buyers. At December 31, 1997,
these securities were valued at $1,849,798
of net or 2.2% assets.
(b) Face amount shown in U.S. dollars unless otherwise
noted.
(c) Investments from cash collateral received for
securities on loan at December 31, 1997.
(d) Security is fair valued in good faith under
procedures established by the Board of Directors of
the Fund.
(e) Deemed to be a restricted security.
See Notes to the Financial Statements.
Graph
============================================================================
TIFF U.S. Equity Fund
December 31, 1997
============================================================================
Policy Considerations: The Fund is designed as a core
vehicle for that portion of Members' assets committed to
U.S. stocks. Accordingly, it employs a combination of
managers that, collectively, provide exposure to all market
sectors. The Fund's distinctive structure reflects the
belief that governing boards are ill-equipped to win the
difficult game of sector rotation (growth versus value,
etc.). The Fund's structure is distinctive not because it
entails broad diversification, but because it does so by
combining active strategies with a low cost "active
completeness" portfolio.
Performance Evaluation: Since inception, the Fund has
outperformed its benchmark (the Wilshire 5000 Index) by 700
basis points net of fees and the average domestic equity
fund tracked by Lipper by a whopping 3,120 basis points
(128.3% versus 96.9%). The Fund's assets are now divided
between its quantitatively driven "active completeness"
manager (Martingale) and four old-fashioned but by no means
outmoded stockpickers. When possible, Martingale tries to
deploy funds allocated to it in a manner that fulfills its
primary role of keeping the Fund adequately diversified
across market sectors plus a secondary aim of owning
relative winners within the sectors in which it invests.
Investment Performance (For Periods Ended December 31, 1997)
Total Return
--------------------- -----------------------------
Year Cumulative since Annualized since
Ended Inception (5/31/94) Inception (5/31/94)
----------------------- ----------------------------
TIFF U.S. Equity Fund 33.0% 128.1% 25.9%
Wilshire 5000 Index 31.3% 121.1% 24.7%
=============================================================================
TIFF U.S. Equity Fund / Schedule of Investments
December 31, 1997
=============================================================================
- -------------------------------------------------------------
Long-Term Investments [94.6%] Shares Value +
Common Stocks [91.4%]
Aerospace [1.0%]
AAR Corp. 41,000 $1,588,750
Litton Industries, Inc. * 15,000 862,500
Total 2,451,250
Agriculture [1.5%]
Archer-Daniels-Midland Co. 109,100 2,366,106
Eastern Equities Corp. Ltd. 750,000 366,030
Embrex, Inc. * 190,000 1,009,375
Eskimo Pie Corp. 15,000 172,500
Total 3,914,011
Airlines [0.1%]
AMR Corp. * 2,600 334,100
Banks [9.5%]
BankAmerica Corp. 51,000 3,723,000
Carolina First Corp. 26,000 559,000
CCB Financial Corp. 9,790 1,052,425
Chase Manhattan Corp. 44,400 4,861,800
Citicorp 26,300 3,325,306
First Savings Bank of Washington
Bancorp, Inc. 10,000 275,000
First Union Corp. (NC) 55,400 2,839,250
HUBCO, Inc. 41,483 1,623,022
J.P. Morgan & Company, Inc. 6,100 688,538
Mercantile Bancorporation 12,834 789,291
NationsBank Corp. 15,400 936,513
Peoples Bank of Bridgeport,
Connecticut 42,000 1,596,000
Six Rivers National Bank - Eureka * 33,000 585,750
Vermont Financial Services Corp. 50,000 1,387,500
Total 24,242,395
Beverages [1.8%]
Coca-Cola Co. 50,600 3,371,225
Pepsi-Cola Puerto Rico Bottling Co.
- - Cl B * 168,400 1,136,700
Total 4,507,925
Chemicals [3.8%]
Albemarle Corp. 53,000 1,265,375
Dow Chemical Co. 26,200 2,659,300
EcoScience Corp. * 370,800 579,375
Lyondell Petrochemical Co. 41,300 1,094,450
McWhorter Technologies, Inc. * 70,400 1,812,800
Rogers Corp. * 30,000 1,226,250
Union Carbide Corp. 26,200 1,124,963
Total 9,762,513
Computer Software [2.4%]
Adobe Systems, Inc. 13,600 561,000
BroadVision, Inc. * 161,000 1,046,500
Computer Associates International, Inc. 16,200 856,575
Metrowerks, Inc. * 130,300 1,138,171
Microsoft Corp. * 20,500 2,649,625
Total 6,251,871
Computers [2.3%]
Compaq Computer Corp. 23,400 1,320,638
Digital Equipment * 38,400 1,420,800
International Business Machines Corp. 29,200 3,053,225
Total 5,794,663
Shares Value +
Construction [1.2%]
Johns Manville Corp. 145,400 $1,463,088
Walter Industries, Inc. * 80,800 1,666,500
Total 3,129,588
Cosmetics [3.3%]
Colgate-Palmolive Co. 5,200 382,200
Owens-Illinois, Inc. * 14,000 531,125
Playtex Products, Inc. * 168,100 1,723,025
Procter & Gamble Co. 73,000 5,826,313
Total 8,462,663
Electrical Utilities [0.6%]
Baltimore Gas and Electric Co. 19,600 667,625
Entergy Corp. 30,600 916,088
Total 1,583,713
Electronics [5.2%]
Atmel Corp. * 57,200 1,061,775
Bull Run Corp. * 43,000 165,279
Checkpoint Systems, Inc. * 62,000 1,085,000
Conductus, Inc. * 16,000 81,000
Kemet Corp. * 24,600 476,625
National Semiconductor Corp. * 44,900 1,164,594
Philips Electronics NV - ADR 46,900 2,837,450
Public Service Enterprise Group, Inc. 50,600 1,603,388
Quantum Corp. * 16,000 321,000
Scotsman Industries, Inc. 56,900 1,390,494
Sensormatic Electronics Corp. 71,600 1,176,925
Teradyne, Inc. * 14,700 470,400
Union Texas Petroleum Holdings, Inc. 66,000 1,373,625
Total 13,207,555
Environmental Services [0.7%]
Layne, Inc. * 61,700 802,100
Strategic Diagnostic, Inc. * 425,550 957,488
Total 1,759,588
Financial [3.4%]
Bear Stearns Companies, Inc. 70,400 3,344,000
Morgan Stanley, Dean Witter,
Discover & Co. 23,900 1,413,088
Ryder System, Inc. 40,300 1,319,825
San Juan Basin Royalty Trust 103,000 952,750
Travelers Group, Inc. 32,250 1,737,469
Total 8,767,132
Foods [0.7%]
Dole Food Co., Inc. 27,300 1,248,975
Smithfield Foods, Inc. * 19,100 630,300
Total 1,879,275
Health Care [1.4%]
Morrison Health Care, Inc. 47,766 955,320
Pharmchem Laboratories * 247,200 648,900
Protocol Systems, Inc. * 53,500 538,344
Universal Health Services, Inc. - 30,000 1,511,250
Class B *
Total 3,653,814
Hotels/Restaurants [0.7%]
Ruby Tuesday, Inc. * 40,000 1,030,000
Ryan's Family Steak House, Inc. * 80,600 690,138
Total 1,720,138
Shares Value +
Housewares [0.3%]
Lancaster Colony Corp. 11,800 $ 665,225
Insurance [4.0%]
Allstate Corp. 12,300 1,117,763
Cigna Corp. 10,700 1,851,769
CNA Surety Corp. * 110,000 1,698,125
Conseco, Inc. 22,500 1,022,344
Equitable Companies, Inc. 30,000 1,492,500
Fremont General Corp. 13,900 761,025
Old Republic International Corp. 39,800 1,480,063
Wellpoint Health Networks, Inc. * 20,700 874,575
Total 10,298,164
Leisure [1.2%]
GTech Holdings Corp. * 98,500 3,145,844
Machines [2.1%]
Albany International Corp. 37,000 851,000
Caterpillar, Inc. 71,600 3,477,075
Deere & Co. 15,800 921,338
Total 5,249,413
Manufacturing [2.0%]
Aeroquip-Vickers, Inc. 9,500 466,094
Honeywell, Inc. 17,500 1,198,750
Tenneco, Inc. 20,400 805,800
Tommy Hilfiger Corp. * 21,800 765,725
Westinghouse Air Brake Co. 74,400 1,906,500
Total 5,142,869
Metals [1.1%]
Asarco, Inc. 55,000 1,234,063
Oregon Metallurgical Corp. * 23,800 794,325
Rohn Industries, Inc. 171,000 881,710
Total 2,910,098
Mining [0.5%]
Barrick Gold Corp. 67,600 1,259,050
Motor Vehicles [1.6%]
Ford Motor Co. 86,100 4,191,994
Multimedia [1.2%]
Gray Communications Systems, 67,000 1,725,250
Inc.-Class B
The Walt Disney Co. 4,600 455,688
Tribune Co. 14,600 908,850
Total 3,089,788
Oil/Gas Exploration [4.3%]
Chevron Corp. 11,500 885,500
Exxon Corp. 77,800 4,760,388
Mobil Corp. 7,500 541,406
Phillips Petroleum Co. 48,000 2,334,000
USX-Marathon Group 76,500 2,581,875
Total 11,103,169
Oil/Gas Services [3.2%]
Columbia Gas System 17,500 1,374,844
Daniel Industries 68,300 1,314,775
Tidewater, Inc. 39,300 2,166,413
USX-Delhi Group 39,500 809,750
Shares Value +
Valero Energy Corp 70,800 $2,225,775
Vastar Resources, Inc. 10,200 364,650
Total 8,256,207
Paper/Forest Products [1.8%]
Caraustar Industries, Inc. 33,100 1,133,675
First Brands Corp. 61,000 1,643,188
Fort James Corp. 45,100 1,725,075
Total 4,501,938
Pharmaceuticals [5.6%]
Abbott Laboratories 8,000 524,500
American Home Products Corp. 21,100 1,614,150
Amgen, Inc. * 8,700 470,888
Bristol-Myers Squibb Co. 34,700 3,283,488
ICN Pharmaceuticals, Inc. 15,900 776,119
Johnson & Johnson 33,400 2,200,225
Merck & Company, Inc. 24,700 2,624,375
Owens & Minor, Inc. 50,800 736,600
Schering-Plough Corp. 35,000 2,174,375
Total 14,404,720
Producer Goods [2.7%]
Cummins Engine Company, Inc. 5,900 348,469
General Electric Co. 43,400 3,184,475
Scotts Co. (The) - Class A * 41,100 1,243,275
Treadco, Inc. 127,700 1,292,963
Volt Information Sciences, Inc. * 15,000 808,125
Total 6,877,307
Publishing [1.5%]
Gannett Company, Inc. 11,300 698,481
PRIMEDIA, Inc. * 122,000 1,540,250
Steck-Vaughn Publishing Corp. * 37,000 545,750
Washington Post Company - Class B 1,900 924,350
Total 3,708,831
Railroad [0.3%]
CSX Corp. 14,300 772,200
Retail (Foods) [0.2%]
Safeway, Inc. * 8,600 543,950
Retail (Other) [3.4%]
Consolidated Stores Corp. * 28,125 1,235,742
Dayton Hudson Corp. 31,800 2,146,500
Duckwall-ALCO Stores, Inc. * 19,140 284,708
Geerlings & Wade, Inc. * 97,100 400,538
Mac Frugals Bargains Close-Outs, 50,000 2,062,151
Inc. *
Ross Stores, Inc. 42,400 1,542,300
Shopko Stores, Inc. 22,800 495,900
TJX Companies, Inc. 15,000 515,625
Total 8,683,464
Services [2.3%]
DB Group Ltd. 800,000 1,278,200
Failure Group, Inc. * 148,500 1,559,250
Hilb, Rogal & Hamilton Co. 36,500 704,906
ITT Educational Services, Inc. * 37,950 846,759
NovaCare, Inc. * 53,200 694,925
Olsten Corp. 49,900 748,500
Total 5,832,540
Shares Value +
Telecommunications [2.6%]
Ameritech Corp. 17,200 $1,384,600
C&D Technologies, Inc. 25,000 1,206,250
SBC Communications, Inc. 57,100 4,182,575
Total 6,773,425
Telephone [2.9%]
AT & T Corp. 51,300 3,142,125
Bell Atlantic Corp. 45,500 4,140,500
Total 7,282,625
Thrifts [1.6%]
Charter One Financial, Inc. 26,460 1,670,288
Downey Financial Corp. 29,900 850,281
Golden West Financial Corp. 6,000 586,875
Maryland Federal Bancorp, Inc. 8,000 280,000
Riverview Bancorp, Inc. 41,500 736,625
Total 4,124,069
Tobacco [0.5%]
Philip Morris Companies, Inc. 24,500 1,110,156
Transportation [4.8%]
Air Express International Corp. 35,250 1,075,125
Airborne Freight Corp. 30,000 1,863,750
Circle International Group, Inc. 41,800 958,788
CNF Transportation, Inc. 40,000 1,535,000
Fritz Companies, Inc. * 76,900 1,071,794
Kirby Corp. * 81,000 1,564,313
Pittston Burlington Group, Inc. 40,000 1,050,000
Pittston Services Group 30,900 1,243,725
Xtra Corp. 34,000 1,993,235
Total 12,355,730
Total Common Stocks
(Cost $190,154,062) 233,704,970
Preferred Stock [0.1%]
Norian Corp. (144A) (a) (b) *
(Cost $206,500) 36,875 206,500
Limited Partnership [3.1%]
Gotham Partners L.P. * (b) (c)
(Cost $5,925,000) 5,932 7,888,500
Options [0.0%] +++
Strategic Diagnostic, Inc. $1.625
call expiring 11/7/98
(b)
(Cost $38,120) 190,600 38,120
Total Long-Term Investments
(Cost $196,323,682) 241,838,090
Face
Short-Term Investments [5.3%] Amount
U.S. Treasury Security [0.3%] ++
U.S. Treasury Bill, 5.320% due
3/19/98
# (Cost $741,851)
$ 750,000 741,814
Face
Amount Value +
Repurchase Agreement [5.0%]
Investors Bank & Trust Company
Repurchase Agreement, 5.900%
due 1/2/98; Issued 12/31/97.
Proceeds $12,891,837;
(Collateralized by $5,354,695
FNMA ARM, 7.801% due 9/1/24
with a market value of
$5,553,519; $7,898,526 FNMA
6.358% due 8/1/27 with a market
value of $7,978,604.)
(Cost $12,887,613) $12,887,613 $12,887,613
Total Short-Term Investments
(Cost $13,629,464) 13,629,427
Total Investments [99.9%]
(Cost $209,953,146) 255,467,517
Other assets and liablilities, net [0.1%] 246,434
Net Assets - 100.0% $255,713,951
Short Portfolio [(0.4%)] Shares
Common Stocks [(0.4%)]
Computer Software [(0.2%)]
Broadway & Seymour, Inc. 40,700 391,738
Computer Language Research 14,700 205,800
Total 597,538
Electronics [(0.2%)]
Itron, Inc. 12,700 228,600
VideoLan Technologies, Inc. 2,500 39
YieldUP International Corp. 26,300 249,850
Total 478,489
Environmental Services [(0.0%)] +++
Molten Metal Technology, Inc. 15,000 1,405
Total Common Stocks (Cost $2,148,199) 1,077,432
Total Short Portfolio
(Proceeds - $2,148,199) $ 1,077,432
* Non-income producing security.
# Interest rate represents the
yield to maturity at the time of purchase.
+ See Note 2 to the Financial Statements.
++ Assets currently held with a
broker as initial margin for
futures contracts.
See Appendix C to Notes to the Financial Statements.
+++ Rounds to less than 0.0%.
ADR American Depositary Receipt
ARM Adjustable Rate Mortgage
FNMA Federal National Mortgage Association
(a) Security exempt from registration under Rule 144A of
the Securities Act of 1933. These securities may
be resold in transactions exempt from
registration, normally to qualified buyers. At
December 31, 1997 the aggregate value of these
securities was valued at $206,500 or 0.08%
of net assets.
(b) Security is fair valued in good faith under procedures
established by the Board of Directors of the Fund.
(c) Deemed to be a restricted security.
See Notes to the Financial Statements.
Graph
==============================================================================
TIFF Bond Fund
December 31, 1997
==============================================================================
Policy Considerations: The Fund's chief aim is to help
foundations weather deflationary times without being forced
to liquidate their equity holdings at depressed prices. As
a form of deflation "insurance," bonds emphasized by the
Fund (intermediate or longer-term, high quality,
non-callable) tend to perform well when inflation concerns
ease, as they did during 1995 and the last half of 1997,
and they tend to perform poorly when investors are spooked
by strength in the economy (actual or expected), as they
were during much of 1996 and early 1997. The sell-off in
bonds early in 1997 created a very favorable environment
for foundations seeking to increase their deflation
"insurance," and the bond rally that subsequently ensued has
reduced but arguably not eliminated bonds' appeal relative
to stocks.
Performance Evaluation: The Fund has produced strong
absolute returns since inception (34.6% net of fees) and,
despite stricter quality standards, has outperformed its
fund peer group (the Lipper Intermediate Investment Grade
Bond Fund Index, which is up 31.1% since the Fund's
inception). It has also outperformed its primary benchmark
(the Lehman Aggregate Bond Index) on a pre-fee basis, but
slightly lags the Index net of fees. Although the
managers' solid results are belied by the Fund's net
returns, all three have outperformed their benchmarks since
inception. All three managers receive performance-based
fees, so their income from the Fund cannot rise materially
unless their relative performance improves also.
Investment Performance (For Periods Ended December 31, 1997)
Total Return
--- --------------------- -------------------
Year Cumulative since Annualized since
Ended Inception (5/31/94) Inception
(5/31/94)
TIFF Bond Fund 9.4% 34.9% 8.6%
Lehman Aggregate Bond Index 9.7% 35.5% 8.9%
=============================================================================
TIFF Bond Fund / Schedule of Investments
December 31, 1997
============================================================================
Face
Long-Term Investments [97.5%] Amount Value +
Bonds [96.6%]
Asset-Backed Securities [10.3%]
Advanta Mortgage Loan Trust, Ser.
1997-1, Class B1F, 8.150% due
5/25/27 $550,000 $ 574,981
Americredit Auto Receivables Trust,
Ser. 1997-C, Class A3, 6.300%
due 8/20/97 1,000,000 1,005,350
Amresco Mortgage Loan Trust, Ser.
1997-1, Class B1F, 7.915%
due 3/25/27 1,050,000 1,079,358
Amresco Residential Ser. 1997-1,
Class A8, 7.240% due 3/25/27 1,425,000 1,468,253
California Infrastructure SCE, Ser.
1997-1, Class A6, 6.380% due 9/25/08 400,000 402,764
Citibank Cr. Card Master Trust, Ser.
1997-2, Class A, 6.550% due 2/15/04 1,300,000 1,317,563
Ford Credit Auto Owner Trust, Ser.
1996-A, Class A3, 6.500% due 11/15/99 900,000 902,673
IMC Home Equity Loan, Ser. 1997-4,
Class A, 5.840% due 10/20/27 977,796 977,339
MBNA Master Credit Card Trust, Ser.
1997-F, Class A, 6.600% due 1,000,000 1,018,580
11/15/04
Merrill Lynch Mortgage Investors,
Ser. 1995-C2, Class A1, 7.419%
due 6/15/21 141,914 144,293
Olympic Auto Receivable Trust, Ser.
1996-C, Class A4, 6.800% due 3/15/02 700,000 709,338
Olympic Auto Receivable Trust, Ser.
1997-A, Class A4, 6.625% due 12/15/02 575,000 581,342
Premier Auto Trust, Ser. 1997-2,
Class A4, 6.250% due 6/6/01 1,300,000 1,304,732
Providian Trust, Ser. 1997-4, Class
A, 6.250% due 6/15/07 1,160,000 1,164,420
Residential Asset Sec. Corp., Ser.
1997-KS1, Class AI2, 7.070%
due 4/25/28 850,000 854,259
Saxon Asset Securities Trust, Ser.
1997-1,Class AF6, 7.325% due 1/25/12 1,562,000 1,609,563
Saxon Asset Securities Trust, Ser.
1997-3, Class AF6, 6.730% due 2/25/27 700,000 693,656
UCFC Home Equity Loan IO) Ser.
1997-C, Class A, 8.000% due 9/15/00 1,875,000 361,816
UCFC Home Equity Loan, Ser. 1996-B1,
Class A5, 7.650% due 6/15/20 1,125,000 1,175,055
Union Acceptance Corp. IO Strip,
Ser. 1996- C, Class I, 2.750%
due 10/8/03 10,812,710 258,491
Union Acceptance Corp. IO, Ser.
1996-D, Class I, 3.000% due 1/8/04 1,104,713 31,588
Union Acceptance Corp. IO, Ser.
1997-B, Class I, 1.850% due 6/8/27 4,645,260 99,438
Union Acceptance Corp., Ser. 1996-A,
Class I, IO due 5/7/99 3,572,842 79,674
Total Asset-Backed Securities
-------------
(Cost $17,854,696) 17,814,526
-------------
Corporate Obligations [30.8%]
Anthem Insurance (144A), 9.000% due
4/1/27 (a) 710,000 791,384
Archer-Daniels-Midland, 6.750% due
12/15/27 1,165,000 1,166,785
Avon Energy Partners (144A), 7.050%
due 12/11/07 (a) 645,000 655,902
Bankers Trust, 6.700% due 10/1/07 270,000 272,769
Bear Stearns Co., 6.750% due 12/15/07 1,200,000 1,205,608
California Petroleum Transport,
8.520% due 4/1/15 855,000 980,086
CIBC Capital Funding (144A), 6.250%
due 12/17/02 (a) 660,000 659,413
Cogentrix Energy Inc., 8.100%
due 3/15/04 1,415,000 1,474,697
Face
Amount Value +
Compania Telecom Chile, 7.625% due
7/15/06 (Chile) $ 1,565,000 $ 1,656,781
Conseco Finance Trust II, 8.700% due
11/15/26 845,000 939,010
Corp. Andina de Fomento, 7.375% due
7/21/00 (Latin America) 305,000 311,147
Corp. Andina de Fomento, 7.250% due
3/1/07 (Latin America) 1,520,000 1,547,216
Corp. Andina de Formento, 7.100% due
2/1/03 (Latin America) 1,060,000 1,076,083
Discover Credit Card, 9.000%
due 10/1/01 445,000 484,789
DQU II Funding, 8.700% due 6/1/16 935,000 1,044,142
El Paso Natural Gas Co., 6.750% due
11/15/03 1,500,000 1,527,549
Empresa Nacional de Electridad,
8.125% due 2/1/2097 (Spain) 780,000 815,545
Federal Home Loan Bank - Global
Bond, 6.120% due 1/24/01 1,100,000 1,095,130
Federated Dept. Stores, 7.450% due
7/15/17 1,000,000 1,049,221
First Maryland Bancorp, 7.200% due
7/1/07 1,025,000 1,071,291
First National Bank of Chicago,
8.080% due 1/5/18 835,000 953,285
Firststar Bank Milwaukee, 6.250% due
12/1/02 300,000 299,978
Florida Windstorm Underwriting
(144A), 6.500% due 8/25/02 (a) 500,000 501,700
Florida Windstorm Underwriting
(144A), 6.850% due 8/25/07 (a) 700,000 710,408
Global Marine, Inc. (144A), 7.125%
due 9/1/07 (a) 500,000 517,395
Goldman Sachs Group LP (144A),
7.800% due 7/15/02 (a) 625,000 659,893
Grace & Co., (W.R.), 8.000% due
8/15/04 1,100,000 1,188,310
GTE Florida, Inc., 6.310% due
12/15/02 1,000,000 1,001,836
Hero Asia BVI Co. Ltd. (144A),
9.110% due 808,942 840,964
10/15/01 (China) (a)
Humpuss Funding Corp. (144A), 7.720%
due 12/15/09 (Indonesia) (a) 1,062,772 1,094,729
IBM Corp., 7.125% due 12/1/96 595,000 619,563
Jasmine Submarine Telecom (144A),
8.483% due 5/30/11 (Thailand) (a) 1,018,888 924,483
Jet Equipment Trust (144A), 9.710%
due 2/15/14 (a) 165,000 209,381
Lasmo (USA), Inc. 7.300% due 11/15/27 1,140,000 1,170,839
Leucadia National Corp., 7.875% due
10/15/06 700,000 738,779
Lockheed Martin, 6.850% due 5/15/01 800,000 812,756
Monsanto Co., 6.750% due 12/15/27 575,000 568,094
Morgan Stanley Group, Inc., 8.100%
due 6/24/02 955,000 1,020,769
Mutual Life Insurance Co. - NY
(144A),0.000% due 8/15/24 (a) (b) 1,145,000 1,439,775
Nabisco Inc., 7.550% due 6/15/15 850,000 902,765
New Plan Realty, 7.680% due 11/2/26 920,000 987,430
Norfolk Southern Corp., 6.950% due
5/1/02 1,000,000 1,024,730
Northwest Airlines Corp., 7.068% due
7/2/17 525,000 550,443
Northwest Airlines Corp., 7.248% due
7/2/14 445,000 456,815
Oil Purchase Co. (144A), 7.100% due
4/30/02 (Colombia) (a) 615,000 615,276
Perez Companc SA (144A), 8.125% due
7/15/07 (Argentina) (a) 620,000 592,875
Petrozuata Finance, Inc. (144A),
8.220% due 4/1/17 (Venezuela) (a) 400,000 418,598
Petrozuata Finance, Inc. (144A),
8.370% due 10/1/22 (Venezuela) (a) 200,000 212,163
Face
Amount Value +
Prime Property II (144A), 6.800% due
8/15/02 (a) 855,000 $ 864,982
Ras Laffan-Lincs 1997-11 (144A),
7.850% due 3/18/14 (a) (c) 1,245,000 1,394,592
Revlon Worldwide, Inc., 0.000% due
3/15/98 850,000 841,259
Rodamco NV, 7.300% due 5/15/05
(Netherlands) 600,000 630,002
Rollins Truck, 7.000% due 3/15/01 600,000 613,156
Saga Petroleum, 7.250% due 9/23/27
(Norway) 900,000 921,316
Salomon, Inc., 6.750% due 2/15/03 870,000 882,351
Sithe/ Independence Fndg, Ser. A,
9.000% due 12/30/13 540,000 646,444
Tarkett International, 9.000% due
3/1/02 (Germany) 990,000 1,051,011
Taubman Realty Group, 7.500% due
6/15/02 620,000 643,019
Tektronix, Inc., 7.500% due 8/1/03 500,000 520,610
Times Mirror Co., 6.610% due 9/15/27 470,000 481,918
Total Access Communication, 2% due
5/15/06 750,000 735,291
U.S. West Capital Funding, Inc.,
6.850% due 1/15/02 1,000,000 1,016,624
Seabrook Station Unit., 7.830% due
1/2/19 575,000 588,296
YPF Sociedad Anonima, 7.500% due
10/26/02 (Argentina) 643,808 662,368
-------------
Total Corporate Obligations
(Cost $51,789,979) 53,351,819
-------------
Mortgage-Backed Securites [31.4%]
Federal Home Loan Mortgage Corp
Gold (TBA), 7.500% due 4/14/98 4,500,000 4,608,281
PO, Ser. 1689, due 3/15/24 63,152 61,547
7.000% due 1/1/11 728,607 740,895
Ser. 1577, Class PH, 6.300%
due 3/15/23 1,875,000 1,870,800
Federal National Mortgage Corp
(TBA), 7.000% due 1/14/98 4,900,000 4,935,219
FNMA (TBA), 7.500% due 1/14/98 8,250,000 8,441,104
FNMA IO, Ser. 1997-M8, Class A2,
6.080% due 9/3/03 200,000 197,265
6.980% due 6/1/07 422,777 437,648
7.160% due 1/25/22 1,650,000
1,688,414
7.000% due 3/1/24 817,313 826,388
7.000% due 3/1/24 648,811 656,014
9.000% due 3/1/25 1,108,534 1,184,906
Government National Mortgage Assn.
(ARM), 7.375% due 4/20/24 1,299,727 1,335,806
II, 5.000% due 6/20/27 3,960,716 3,954,791
II, 5.000% due 8/20/27 130,014 129,213
II, 5.000% due 9/20/27 855,816 850,549
5.500% due 12/20/27 990,000 990,632
5.500% due 5/20/27 1,184,005 1,193,019
5.500% due 6/20/27 6,113,178 6,159,741
5.500% due 8/20/27 6,895,145 6,923,943
6.000% due 2/20/27 3,788,131 3,854,253
6.875% due 12/20/17 369,906 380,215
7.000% due 1/20/18 445,805 457,200
7.000% due 7/15/23 488,789 494,597
7.000% due 5/15/24 814,194 823,360
7.000% due 5/15/24 383,282 387,597
7.125% due 8/20/17 105,868 108,954
7.125% due 9/20/21 127,579 131,104
9.500% due 10/15/24 556,347 604,279
-------------
Total Mortgage-Backed Securities
(Cost $53,623,970)
54,427,734
-------------
U.S. Government Agency Obligation [1.4%]
Federal National Mortgage Assn.
(MTN), 5.200% due 7/10/98 1,000,000 997,550
(MTN), 5.650% due 3/5/01 725,000 720,017
Face
Amount Value +
(MTN), 5.800% due 2/22/06 $ 725,000 $ 712,613
Total U.S. Government Agency Obligations
-------------
(Cost $2,378,145) 2,430,180
-------------
U.S. Treasury Securities [22.7%]
U.S. Treasury Bond,
8.000% due 11/15/21 1,730,000 2,156,552
8.125% due 5/15/21 200,000 252,000
U.S. Treasury Note
4.750% due 10/31/98 3,620,000 3,592,850
5.000% due 1/31/99 585,000 580,978
5.500% due 11/15/98 4,200,000 4,193,435
5.500% due 12/31/00 570,000 566,972
5.625% due 1/31/98 200,000 200,000
5.625% due 11/30/00 1,200,000 1,197,750
5.750% due 11/30/02 205,000 205,192
5.875% due 11/30/01 2,060,000 2,069,655
6.125% due 8/15/07 1,490,000 1,531,440
6.250% due 2/28/02 2,500,000 2,546,875
6.250% due 2/15/03 1,445,000 1,477,963
6.375% due 7/15/99 250,000 252,656
6.375% due 8/15/27 3,010,000 3,173,669
6.625% due 6/30/01 4,075,000 4,189,609
6.750% due 4/30/00 7,335,000 7,502,326
7.125% due 10/15/98 200,000 202,250
7.125% due 2/29/00 250,000 257,266
7.500% due 10/31/99 540,000 556,706
7.875% due 1/15/98 100,000 100,094
8.875% due 2/15/99 100,000 103,406
U.S. Treasury Strip
due 11/15/21 6,350,000 1,506,341
5.222% due 2/15/20 4,070,000 1,072,726
-------------
Total U.S. Treasury Securities
(Cost $38,662,816) 39,488,711
-------------
Shares
Preferred Stocks [0.9%]
Indosuez Holdings S.C.A. Preferred
(144A) 10.375% Series (France) (a) 17,312 483,962
Duke Realty Investments, Inc. 7.990%
due 10/1/12 20,240 1,051,215
-------------
Total Preferred Stocks
(Cost $1,488,080) 1,535,177
-------------
Total Long-Term Investments
(Cost $165,797,686) 169,048,147
-------------
Face
Short-Term Investments [12.1%] Amount
U.S. Treasury Securities [0.1%]
U.S. Treasury Bill, 5.260% due
5/28/98 ++ # $ 50,000 48,937
U.S. Treasury Bill, 5.380% due
4/2/98 ++ # 15,000 14,805
-------------
Total U.S. Treasury Securities
(Cost $64,042) 63,742
-------------
Repurchase Agreements [12.0%]
Investors Bank & Trust Company
Repurchase Agreement, 5.900% due 1/2/98;
Issued 12/31/97; Proceeds $6,330,087
(Collateralized by $857,905
FNMA LBR FLTR 7.175% due 11/25/22 with
a market value of $882,523;
$5,664,422 FNMA, 6.506% due 6/1/27 with a
market value of $5,773,924) 6,328,012 6,328,012
Face
Amount Value +
Morgan Stanley Repurchase
Agreement, 6.280% due 1/5/98;
Issued 12/29/97; Proceeds $14,517,706
(Collateralized By $14,240,255
FNMA ARM, 7.594% due 6/1/27 with
a market value of $14,795,859.) $14,500,000 $14,500,000
-------------
Total Repurchase Agreements
(Cost $20,828,012) 20,828,012
-------------
Total Short-Term Investments
(Cost $20,892,054) 20,891,754
-------------
Total Investments [109.6%]
(Cost $186,689,740) 189,939,901
Other assets and liabilities, net (16,587,845)
[(9.6%)]
-------------
Net Assets - 100.0% $173,352,056
+ See Note 2 to the Financial Statements.
++ Assets currently held with a broker as initial margin for
financial futures contracts.
# Interest rate represents the yield to maturity at the time
of purchase.
(a) Security exempt from registration under Rule 144A of the
Securities Act of 1933. These securities may be resold in
transactions exempt from registration, normally to qualified
buyers. At December 31, 1997, these securities were valued
at $13,587,875 or 7.8% of net assets.
(b) Security is a step up bond which will pay 11.25% until maturity
starting 8/15/99.
(c) Coupon rate is 7.85% through September 2006, and 8.05%
thereafter.
ARM Adjustable Rate Mortgage
FHLMC Federal Home Loan Mortgage Corporation
FLTR Floating Rate Note
FNMA Federal National Mortgage Corporation
GNMA Government Mortgage Association
IO Interest - Only Obligation
LBR London Interbank Rate
MTN Medium - Term Note
PO Principal - Only Obligation
TBA To Be Announced Security - Security is subject to delayed delivery.
See Notes to the Financial Statements.
Graph
============================================================================
TIFF Short-Term Fund
December 31, 1997
============================================================================
Policy Considerations: The cooperative's directors recognize
that many foundations seek to control downward fluctuations
in the monetary value of assets earmarked for spending
within twelve months by investing them exclusively in cash
equivalents. However, the risk and return characteristics
of alternate short-term investment strategies suggest that a
short-term income fund whose average maturity ranges between
the one to three months, typical of money market funds, and
the six months inherent in the TIFF Short-Term Fund's
performance benchmark, arguably comports better with
foundations' short-term investment goals than money market
funds per se. Although the market value of six-month
Treasury Bills can decline when short-term interest rates
are rising sharply, there is a high probability that such
instruments will produce positive total returns in any given
month. To ensure that the Fund's managers do not take undue
risks in their efforts to outperform their 6-month Treasury
Bill benchmark, TIP imposes on them a number of restrictions
(codified in the Prospectus), including maturity limits
which ensure that the average duration of the Fund's
holdings does not exceed 6 months. Also, while the Fund may
own debt securities of all grades, not more than 5% of its
total assets may be invested in securities rated below
investment grade (i.e., rated below BBB by S&P or Baa by
Moody's).
Performance Evaluation: The Fund is performing as planned
in the following sense: its aim (admittedly modest) is to
outperform its 6-month Treasury Bill benchmark net of fees.
Since its inception in May 1994, the Fund's holdings have
outperformed this benchmark, but the very modest expenses it
incurs (about 0.35% per annum) have caused the Fund as a
whole to produce approximately the same cumulative return as
its benchmark (21.7%). Until the Fund's assets grow, the
vendors it employs have agreed to waive fees as needed to
keep the Fund's expense ratio within the bounds specified in
the Prospectus.
Investment Performance (For Periods Ended December 31, 1997)
Total Return
Year Cumulative since Annualized since
Ended Inception (5/31/94) Inception (5/31/94)
TIFF Short-Term Fund 5.3% 21.7% 5.6%
Merrill Lynch 182-Day 5.6% 21.7% 5.6%
T-Bill
===============================================================================
TIFF Short-Term Fund / Schedule of Investments December 31, 1997
===============================================================================
Face Amount Value+
Asset Backed Securities [62.3%]
AT&T Universal Card Trust (FRN),
Ser. 1995-1, Class A, 5.955% due
8/17/00 $1,000,000 $ 999,990
Beneficial Mortgage Corp. FRN, Ser.
1996-1, Class A, 6.149% due 4/28/26 469,913 465,294
Champion Home Equity Loan Trust,
Ser.1997-2, Class A1, 6.590%
due 11/25/10 918,430 918,054
Chase Manhattan Auto Owner Trust,
Ser. 1997-B, Class A2, 6.100% due
1/17/00 1,000,000 1,000,830
Contimortgage Home Equity Trust,
6.420% due 4/15/07 315,218 314,600
Discover Card Trust, Ser. 1993-A,
Class A, 6.250% due 8/16/00 833,333 832,283
EQCC Home Equity Loan Trust, Ser.
1996-4, Class A3, 6.260% due 11/15/06 1,000,000 1,001,280
First Chicago Master Trust II, Ser.
1992-E, Class A, 6.250% due 8/15/99 166,666 166,313
Ford Credit Auto Owner Trust, Ser.
1996-A, Class A3, 6.500% due 11/15/99 1,000,000 1,002,970
Ford Credit Auto Trust, Ser. 1996-B,
Class A3, 6.100% due 3/15/00 1,000,000 1,000,680
Ford Credit Auto Trust, Ser. 1997-B,
Class A2, 5.950% due 1/15/00 1,000,000 999,560
Green Tree Financial Corp., Ser.
1997-D, Class HEA1, 5.970% due 9/15/28 713,057 713,136
Greentree Financial Corp., Ser.
1996-7, Class A1, 6.000% due 10/15/27 74,572 74,574
HCF Revolving Home Equity Loan Trust
FRN, Ser. 1996-2, Class A,
6.109% due 2/20/18 1,083,077 1,080,023
HFC Home Equity Loan FRN, Ser.
1992-2, Class A2, 6.485% due 10/20/07 1,074,404 1,074,888
MBNA Master Credit Card Trust,
5.400% due 9/15/00 1,000,000 993,770
Money Store Home Equity Trust (The),
Ser. 1996-C, Class A1, 6.700% due
9/15/08 264,211 263,765
Nationsbank Auto Owner Trust, Ser.
1996-A, Class A2, 6.125% due 7/15/99 259,907 260,017
Norwest Auto Trust, Ser. 1996-A,
Class A3, 5.900% due 3/15/00 1,000,000 999,060
Olympic Auto Receivables Trust, Ser.
1996- D, Class A2, 5.750% due 4/15/00 506,754 506,582
Olympic Auto Receivables Trust, Ser.
1997-A, Class A2, 6.125% due 8/15/00 1,127,215 1,128,207
Pacific Gas & Electric, Ser. 1997-1,
Class A1, 5.940% due 9/25/00 1,000,000 998,594
PBCMT, Ser. 1994-2, Class A, 6.130%
due 3/15/01 892,857 893,090
Premier Auto Trust, Ser. 1994-2,
Class A3, 6.350% due 5/2/00 537,919 537,930
Premier Auto Trust, Ser. 1995-4,
Class A3, 5.900% due 7/6/99 192,537 192,545
Signet Credit Card Master Trust,
Ser. 1993-1, Class A, 5.200% due
2/15/02 1,000,000 993,920
Standard Master Card Master Trust,
Ser. 1991-6, Class A, 7.875% due
1/7/00 1,000,000 1,014,630
Standard Master Card Master Trust,
Ser. 1991-3, Class A, 8.875% due
9/7/99 1,000,000 1,014,900
-------------
Total Asset-Backed Securities 21,441,485
-------------
(Cost $21,457,176)
Bank Obligations [4.8%]
Bank of Boston Nassau Time Deposit,
4.5%, due 1/2/98 645,000 645,000
Societe Generale Yankee CD, 5.710%
due 4/30/98 1,000,000 999,518
Total Bank Obligations
-------------
(Cost $1,644,518) 1,644,518
-------------
Face
Amount Value+
U.S. Government Agency Obligations [24.0%]
Federal Home Loan Bank 5.95% due
1/7/98 $ 1,285,000 $ 1,283,770
Federal National Mortgage
Association 5.95% due 1/7/98 7,000,000 6,993,304
Total U.S. Government Agency Obligations
-------------
(Cost $8,277,074) 8,277,074
-------------
U.S. Treasury Obligations [25.3%]
U.S. Treasury Bill, 4.960% due
7/2/98 # 6,000,000 5,840,569
U.S. Treasury Bill, 5.020% due
12/10/98 # 2,500,000 2,376,260
U.S. Treasury Bill, 5.300% due
1/8/98 # ++ 500,000 499,544
Total U.S. Treasury Obligations
-------------
(Cost $8,717,004) 8,716,373
-------------
Total Investments [116.4%]
(Cost $40,095,772) 40,079,450
Other assets and liabilities, net [(16.4%)] (5,648,165)
-------------
Net Assets - 100.0% $34,431,285
+ See Note 2 to the Financial Statements.
++ Assets currently held with a broker
as initial margin for financial futures
contracts.
# Interest rate represents the yield to
maturity at the time of purchase.
FRN Floating Rate Note. Rate shown is the coupon
rate in effect at December 31, 1997
See Notes to the Financial Statements
==============================================================================
TIFF Multi-Asset Fund / Statement of Assets and Liabilities December 31, 1997
==============================================================================
<TABLE>
<S> <C>
Assets
Investments in securities, at value (Cost - $413,493,211) $ 408,045,171
Cash 1,070,235
Deposit with broker for short sales 5,699,376
Receivable for securities sold 8,728,746
Interest receivable 770,099
Dividends receivable 191,235
Variation margin on financial futures contracts receivable 79,703
Receivable for forward currency contracts 206,387
Deferred organizational costs 4,552
Other assets 110,354
---------------------
Total assets 424,905,858
---------------------
Liabilities
Payable to the broker 14,953
Payable for securities purchased 36,410,518
Liability for securities sold short (Proceeds - $5,433,579) 5,452,664
Payable for forward currency contracts 250,781
Due to custodian 385,660
Accrued expenses and other liabilities 73,884
---------------------
Total liabilities 42,588,460
---------------------
Net Assets $ 382,317,398
=====================
Shares Outstanding (authorized 500,000,000, par value $.001) 32,824,782
=====================
Net asset value per share $ 11.65
=====================
Components of Net Assets as of December 31, 1997 were as follows:
Capital stock at par value
$ 32,825
Capital stock in excess of par value 389,701,009
Distributions in excess of net investment income (4,258,832)
Accumulated net realized gain on investments and short sales 2,348,322
Net unrealized depreciation on investments, short sales, financial
futures contracts, forward currency contracts and translation of other
assets and liabilities denominated in foreign currencies (5,505,926)
----------------------
$
382,317,398
=====================
</TABLE>
See Notes to Financial Statements
===============================================================================
TIFF International Equity Fund / Statement of Assets and Liabilities
December 31, 1997
===============================================================================
<TABLE>
<S> <C>
Assets
Investments in securities, at value (Cost - $224,458,743) $ 246,990,641
Cash 2,000,028
Foreign currency (Cost - $15,285) 19,083
Receivable for securities sold 1,026,965
Interest receivable 46,202
Dividends receivable 355,445
Receivable for forward currency contracts 260,110
Deferred organizational costs 4,026
Other assets 95,034
---------------------
Total assets 250,797,534
---------------------
Liabilities
Payable for collateral on securities on loan 9,416,417
Payable for securities purchased 217,713
Payable for forward currency contracts 36
Accrued expenses and other liabilities 91,470
---------------------
Total liabilities 9,725,636
---------------------
Net Assets $ 241,071,898
=====================
Shares Outstanding (authorized 500,000,000, par value $.001) 20,473,751
=====================
Net asset value per share $ 11.77
=====================
Components of Net Assets as of December 31, 1997 were as follows:
Capital stock at par value $ 20,474
Capital stock in excess of par value 219,446,054
Distributions in excess of net investment income (1,731,958)
Accumulated net realized gain on investments 549,091
Net unrealized appreciation on investments, financial futures
contracts, foreign currency contracts and translation of other assets
and liabilities denominated in foreign currencies 22,788,237
---------------------
$ 241,071,898
=====================
</TABLE>
See Notes to Financial Statements
==============================================================================
TIFF Emerging Markets Fund / Statement of Assets and Liabilities
December 31, 1997
==============================================================================
<TABLE>
<S> <C>
Assets
Investments in securities, at value (Cost - $97,750,954) $ 89,409,247
Cash 4,580
Foreign currency (Cost - $495,941) 397,571
Receivable for securities sold 52,608
Interest receivable 12,140
Dividends receivable 887,081
Receivable for forward currency contracts 246
Deferred organizational costs 1,763
Other assets 25,323
---------------------
Total assets 90,790,559
---------------------
Liabilities
Payable for collateral on securities on loan 3,787,835
Payable for securities purchased 3,104,170
Payable for forward currency contracts 508
Accrued expenses and other liabilities 62,010
---------------------
Total liabilities 6,954,523
---------------------
Net Assets $ 83,836,036
=====================
Shares Outstanding (authorized 500,000,000, par value $.001) 10,356,656
=====================
Net asset value per share $ 8.09
=====================
Components of net assets as of December 31, 1997 were as follows:
Capital stock at par value $ 10,357
Capital stock in excess of par value 99,959,363
Distribution in excess of net investment income (2,594,353)
Accumulated net realized loss on investments (5,103,858)
Net unrealized depreciation on investments, forward currency contracts and
translation of other assets and liabilities denominated in foreign (8,435,473)
currencies
---------------------
$ 83,836,036
=====================
</TABLE>
See Notes to Financial Statements
===============================================================================
TIFF U.S. Equity Fund / Statement of Assets and Liabilities
December 31,1997
===============================================================================
<TABLE>
<S> <C>
Assets
Investments in securities, at value (Cost - $209,953,146) $ 255,467,517
Cash 152,054
Receivable for securities sold 322,357
Variation margin for financial futures contracts receivable 1,953
Interest receivable 2,112
Dividends receivable 243,956
Deposit with broker for short sales 948,151
Deferred organization costs 5,384
---------------------
Total assets 257,143,484
---------------------
Liabilities
Payable for securities purchased 219,266
Liability for securities sold short (Proceeds - $2,148,199) 1,077,432
Accrued expenses and other liabilities 132,835
---------------------
Total liabilities 1,429,533
---------------------
Net Assets $ 255,713,951
=====================
Shares Outstanding (authorized 500,000,000, par value $.001) 16,328,937
=====================
Net asset value per share $ 15.66
=====================
Components of Net Assets as of December 31, 1997 were as follows:
Capital stock at par value $ 16,329
Capital stock in excess of par value 203,561,493
Distribution in excess of net investment income (1,590,691)
Accumulated net realized gain on investments 7,033,532
Net unrealized appreciation on investments, financial futures
contracts, and short sales 46,693,288
---------------------
$ 255,713,951
=====================
</TABLE>
See Notes to Financial Statements
===============================================================================
TIFF Bond Fund / Statement of Assets and Liabilities
December 31,1997
===============================================================================
<TABLE>
<S> <C>
Assets
Investments in securities, at value (Cost - $186,689,740) $ 189,939,901
Cash 407,724
Interest receivable 1,781,512
Dividends receivable 28,634
Variation margin on financial futures contracts receivable 4,009
Deferred organizational costs 2,886
---------------------
Total assets 192,164,666
---------------------
Liabilities
Payable for securities purchased 18,175,240
Dividends payable from net investment income 343,057
Payable for capital stock repurchased 260,000
Accrued expenses and other liabilities 34,313
---------------------
Total liabilities 18,812,610
---------------------
Net Assets $ 173,352,056
=====================
Shares Outstanding (authorized 500,000,000, par value $.001) 16,921,548
=====================
Net asset value per share $ 10.24
=====================
Components of Net Assets as of December 31, 1997 were as follows:
Capital stock at par value $ 16,922
Capital stock in excess of par value 170,261,654
Distribution in excess of net investment income (100,419)
Accumulated net realized loss on investments (97,165)
Net unrealized appreciation on investments and financial futures contracts 3,271,064
---------------------
$ 173,352,056
=====================
</TABLE>
See Notes to Financial Statements
===============================================================================
TIFF Short-Term Fund / Statement of Assets and Liabilities
December 31, 1997
===============================================================================
<TABLE>
<S> <C>
Assets
Investments in securities, at value (Cost - $40,095,772) $ 40,079,450
Cash 483,893
Interest receivable 128,095
Variation margin for financial futures contracts receivable 1,237
Deferred organizational costs 724
Other assets 6,262
---------------------
Total assets 40,699,661
---------------------
Liabilities
Payable for securities purchased 5,841,323
Payable for capital stock repurchased 380,896
Dividends payable from net investment income 41,702
Accrued expenses and other liabilities 4,455
---------------------
Total liabilities 6,268,376
---------------------
Net Assets $ 34,431,285
=====================
Shares Outstanding (authorized 500,000,000, par value $.001) 3,459,841
=====================
Net asset value per share $ 9.95
=====================
Components of Net Assets as of December 31, 1997 were as follows:
Capital stock at par value $ 3,460
Capital stock in excess of par value 34,761,377
Distribution in excess of net investment income (41,702)
Accumulated net realized loss on investments (278,099)
Net unrealized depreciation on investments and financial
futures contracts (13,751)
---------------------
$ 34,431,285
=====================
</TABLE>
See Notes to Financial Statements
===========================================================================
Statement of Operations
Year Ended December 31, 1997
===========================================================================
<TABLE>
<S> <C> <C> <C>
TIFF Multi- TIFF Int'l TIFF Emerging
Asset Fund Equity Fund Markets Fund
Investment income
Interest $ 4,869,193 $ 739,378 $ 287,207
Dividends (net of withholding taxes of $227,337 for
Multi-Asset, $508,450 for International Equity Fund,
and $100,719 for Emerging Markets) 8,534,436 3,937,295 1,913,467
----------------------------------------------------------
Total investment income 13,403,629 4,676,673 2,200,674
----------------------------------------------------------
Operating expenses
Investment advisory fees 668,259 359,416 131,382
Money manager fees 754,921 1,826,785 720,223
Custodian fees 514,386 473,863 374,962
Administration fees 252,206 133,200 48,710
Shareholder recordkeeping fees 20,494 20,188 9,385
Professional fees 87,115 71,794 54,828
Insurance expense 18,755 13,954 4,765
Registration and filing fees 56,798 24,111 15,655
Taxes - - 13,187
Amortization of organizational costs 1,747 4,026 2,328
Miscellaneous fees and expenses 6,366 3,263 2,128
----------------------------------------------------------
Total operating expenses 2,381,047 2,930,600 1,377,553
----------------------------------------------------------
Net investment income 11,022,582 1,746,073 823,121
----------------------------------------------------------
Net realized and unrealized gain (loss) on
investments, financial futures and forward currency
contracts, short sales and foreign currency related
transactions
Net realized gain (loss) on:
Investments 15,082,527 7,226,470 4,850,359
Short sales 568,457 - -
Financial futures and options contracts 4,302,175 (3,020,953) -
Forward currency contracts and foreign currency
related transactions 1,415,494 1,344,665 (151,378)
----------------------------------------------------------
Net realized gains 21,368,653 5,550,182 4,698,981
----------------------------------------------------------
Net change in unrealized appreciation (depreciation) on:
Investments (21,475,054) (6,700,056) (5,114,591)
Short sales 59,442 - -
Financial futures and options contracts 256,879 925,689 -
Forward currency contracts and foreign currency
related transactions (125,370) (254,796) (5,747)
----------------------------------------------------------
Net change in unrealized appreciation (depreciation) (21,284,103) (6,029,163) (5,120,338)
----------------------------------------------------------
Net realized and unrealized gain (loss) 84,550 (478,981) (421,357)
----------------------------------------------------------
Net increase in net assets resulting from operations $ 11,107,132 $ 1,267,092 $ 401,764
==========================================================
</TABLE>
See Notes to Financial Statements
=============================================================================
Statement of Operations (continued)
Year Ended December 31, 1997
==============================================================================
<TABLE>
<S> <C> <C> <C>
TIFF U.S. TIFF TIFF Short-
Equity Fund Bond Fund Term Fund
Investment income
Interest $ 1,581,307 $ 10,647,312 $ 2,041,026
Dividends (net of withholding taxes of $11,092 for
U.S. Equity and $1,684 for Bond Fund) 2,955,639 98,740 290,294
----------------------------------------------------------
Total investment income 4,536,946 10,746,052 2,331,320
----------------------------------------------------------
Operating expenses
Investment advisory fees 332,819 154,084 11,675
Money manager fees 803,373 342,260 55,160
Custodian fees 182,664 186,177 61,895
Administration fees 123,362 85,660 21,735
Shareholder recordkeeping fees 23,074 18,256 15,162
Professional fees 68,688 60,605 39,058
Insurance expense 12,449 2,994 1,743
Registration and filing fees 22,136 10,575 5,037
Amortization of organizational costs 2,670 3,820 7,150
Miscellaneous fees and expenses 3,097 2,119 122
----------------------------------------------------------
Total operating expenses 1,574,332 866,550 218,737
Waiver of investment advisory, money manager,
and administration fees - - (37,140)
----------------------------------------------------------
Total expenses 1,574,332 866,550 181,597
----------------------------------------------------------
Net investment income 2,962,614 9,879,502 2,149,723
----------------------------------------------------------
Net realized and unrealized gain (loss) on
investments, financial futures and options contracts,
forward currency contracts, short sales and foreign
currency related transactions
Net realized gain (loss) on:
Investments 30,986,019 1,449,954 (152,026)
Short sales (7,121) - -
Financial futures and options contracts 5,136,433 55,350 20,260
Forward currency contracts and foreign currency
related transactions (6,465) - -
----------------------------------------------------------
Net realized gains (losses) 36,108,866 1,505,304 (131,766)
----------------------------------------------------------
Net change in unrealized appreciation (depreciation) on:
Investments 23,053,062 2,612,756 28,276
Short sales 80,355
Forward currency contracts and foreign currency
related transactions 111 - -
Financial futures contracts (7,350) 4,569 (2,609)
----------------------------------------------------------
Net change in unrealized appreciation (depreciation) 23,126,178 2,617,325 25,667
----------------------------------------------------------
Net realized and unrealized gain (loss) 59,235,044 4,122,629 (106,099)
----------------------------------------------------------
Net increase in net assets resulting from operations $ 62,197,658 $ 14,002,131 $ 2,043,624
==========================================================
</TABLE>
See Notes to Financial Statements
===============================================================================
Statement of Changes in Net Assets
===============================================================================
<TABLE>
<S> <C> <C> <C> <C>
TIFF Multi-Asset Fund TIFF International Equity Fund
--------------------------------------------------------------------------
Year Year Year Year
Ended Ended Ended Ended
12/31/97 12/31/96 12/31/97 12/31/96
Increase in net assets from operations:
Net investment income $ 11,022,582 $ 2,569,690 $ 1,746,073 $ 1,777,478
Net realized gain on investments, financial
futures and options contracts, short sales,
forward currency contracts and foreign
currency related transactions 21,368,653 4,396,581 5,550,182 6,903,615
Net unrealized appreciation on investments,
financial futures and options contracts, short
sales, forward currency contracts and on
translation of other assets and liabilities
in foreign currencies (21,284,103) 10,923,335 (6,029,163) 19,095,824
currency
---------------- ------------------ ---------------- -----------------
Net increase in net assets
resulting from operations 11,107,132 17,889,606 1,267,092 27,776,917
---------------- ------------------ ---------------- -----------------
Distributions:
From net investment income (8,869,154) (2,730,948) (3,052,090) (1,558,276)
In excess of net investment income (4,258,832) (1,993,303) (1,731,958) -
From net realized gains (19,429,947) (5,472,828) (5,486,586) (4,556,393)
---------------- ------------------ ---------------- -----------------
Decrease in net assets resulting from distributions (32,557,933) (10,197,079) (10,270,634) (6,114,669)
---------------- ------------------ ---------------- -----------------
Capital share transactions, net (see Appendix D) 185,523,998 117,921,971 30,617,333 42,374,081
---------------- ------------------ ---------------- -----------------
Total increase in net assets 164,073,197 125,614,498 21,613,791 64,036,329
Net assets
Beginning of period 218,244,201 92,629,703 219,458,107 155,421,778
---------------- ------------------ ---------------- -----------------
End of period $382,317,398 $ 218,244,201 $ 241,071,898 $ 219,458,107
================ ================== ================ =================
Distributions in excess of net investment income $ (4,258,832) $ (2,103,517) $ (1,731,958) $ (76,141)
</TABLE>
See Notes to the Financial Statements
==============================================================================
Statement of Changes in Net Assets
(continued)
==============================================================================
<TABLE>
<S> <C> <C> <C> <C>
TIFF Emerging Markets Fund TIFF U.S. Equity Fund
----------------------------------------------------------------------------
Year Year Year Year
Ended Ended Ended Ended
12/31/97 12/31/96 12/31/97 12/31/96
Increase in net assets from operations:
Net investment income $ 823,121 $ 48,533 $ 2,962,614 $ 1,997,005
Net realized gain on investments, financial
futures and options contracts, short sales,
forward currency contracts and
foreign currency related transactions 4,698,981 284,282 36,108,866 16,177,725
Net unrealized appreciation (depreciation) on
investments, financial futures and options
contracts, short sales, forward currency
contracts and on translation of other assets
and liabilities in foreign currencies (5,120,338) (639,272) 23,126,178 9,670,501
---------------- --------------- ---------------- ----------------
Net increase (decrease) in net assets
resulting from operations 401,764 (306,457) 62,197,658 27,845,231
---------------- --------------- ---------------- ----------------
Distributions:
From net investment income (2,295,047) (48,533) (5,880,407) (1,833,750)
In excess of net investment income (2,594,353) (405,752) (1,590,691) (1,124,568)
Net realized gains - - (29,924,738) (12,595,655)
---------------- --------------- ---------------- ----------------
Decrease in net assets resulting from distributions (4,889,400) (454,285) (37,395,836) (15,553,973)
---------------- --------------- ---------------- ----------------
Capital share transactions, net (see Appendix D) (1,412,129) 31,010,927 54,115,616 54,604,505
---------------- --------------- ---------------- ----------------
Total increase (decrease) in net assets (5,899,765) 30,250,185 78,917,438 66,895,763
Net assets
Beginning of period 89,735,801 59,485,616 176,796,513 109,900,750
---------------- --------------- ---------------- ----------------
End of period $ 83,836,036 $ 89,735,801 $ 255,713,951 $176,796,513
================ =============== ================== ================
Distributions in excess of net investment income $ (2,594,353) $ (735,421) $ (1,590,691) $ (1,123,603)
</TABLE>
See Notes to the Financial Statements
==============================================================================
Statement of Changes in Net Assets (concluded)
==============================================================================
<TABLE>
<S> <C> <C> <C> <C>
TIFF Bond Fund TIFF Short-Term Fund
----------------------------------------------------------------------------
Year Year Year Year
Ended Ended Ended Ended
12/31/97 12/31/96 12/31/97 12/31/96
Increase in net assets from operations
Net investment income $ 9,879,502 $ 7,076,481 $ 2,149,723 $ 4,421,745
Net realized gain (loss) on investments, financial
futures and options contracts, and foreign
currency related transactions 1,505,304 (201,395) (131,766) (142,379)
Net unrealized appreciation (depreciation) on
investments, financial futures and options
contracts and on translation of other assets
and liabilities in foreign currencies 2,617,325 (2,515,487) 25,667 (22,187)
---------------- ---------------- ---------------- -----------------
Net increase in net assets resulting from
operations 14,002,131 4,359,599 2,043,624 4,257,179
---------------- ---------------- ---------------- -----------------
Distributions:
From net investment income (9,789,136) (7,076,481) (2,153,026) (4,397,643)
In excess of net investment income (100,419) (46,711) (41,702) (39,033)
From net realized gains (1,323,191) - - -
---------------- --------------- ----------------- ----------------
Decrease in net assets resulting from distributions (11,212,746) (7,123,192) (2,194,728) (4,436,676)
---------------- ---------------- ---------------- -----------------
Capital share transactions, net (see Appendix D) 43,071,571 39,183,037 (28,887,861) (32,930,172)
---------------- ---------------- ---------------- -----------------
Total increase (decrease) in net assets 45,860,956 36,419,444 (29,038,965) (33,109,669)
Net assets
Beginning of period 127,491,100 91,071,656 63,470,250 96,579,919
---------------- ---------------- ---------------- -----------------
End of period $ 173,352,056 $ 127,491,100 $ 34,431,285 $63,470,250
================ ================ ================ =================
(Distributions in excess of) / Undistributed net
investment income $ (100,419) $ 38,756 $ (41,702) $ (36,365)
</TABLE>
See Notes to the Financial Statements
==============================================================================
TIFF Multi-Asset Fund / Financial Highlights
===============================================================================
<TABLE>
<S> <C> <C> <C>
Year Year Period
For a share outstanding Ended Ended from 3/31/95*
throughout each period 12/31/97 12/31/96 to 12/31/95
Net asset value, beginning of period $12.08 $11.13 $10.00
---------------- ---------------- ----------------
Income from investment operations
Net investment income 0.44 0.17 0.26
Net realized and unrealized gain on investments,
financial futures and options contracts, short sales,
forward currency contracts and foreign
currency-related transactions 0.21 1.45 1.14
---------------- ---------------- ----------------
Total from investment operations 0.65 1.62 1.40
---------------- ---------------- ----------------
Less distributions from:
Net investment income (0.30) (0.18) (0.24)
Amounts in excess of net investment income (0.15) (0.13) -
Net realized gains (0.63) (0.36) (0.03)
---------------- ---------------- ----------------
Total distributions (1.08) (0.67) (0.27)
---------------- ---------------- ----------------
Net asset value, end of period $11.65 $12.08 $11.13
================ ================ ================
Total return (d) 5.51% 14.72% 13.87% (b)
Ratios/supplemental data
Net assets, end of period (000s) $382,317 $218,244 $92,630
Ratio of expenses to average net assets 0.72% 1.03% 0.80% (a)
Ratio of net investment income to average net
assets 3.30% 1.99% 4.00% (a)
Portfolio turnover 181.51% 100.66 % 97.35% (b)
Average commission rate per share (c) $0.0132 $0.0145 n/a
</TABLE>
(a) Annualized.
(b) Not annualized.
(c) Represents total commissions paid on portfolio securities divided
by the total number of shares purchased or sold on which commissions
were charged. This disclosure is required by the SEC beginning in 1996.
(d) Total return includes the effects of entry/exit fees received by the
Fund; however, net asset value per share at the beginning and end of each
period used for calculating total return excludes such entry/exit fees.
n/a Not applicable.
* Commencement of Operations.
See Notes to the Financial Statements
==============================================================================
TIFF International Equity Fund / Financial Highlights
==============================================================================
<TABLE>
<S> <C> <C> <C> <C>
Year Year Year Period
For a share outstanding Ended Ended Ended from 5/31/94 *
throughout each period 12/31/97 12/31/96 12/31/95 to 12/31/94
Net asset value, beginning of period $12.19 $10.82 $9.98 $10.00
---------------- ---------------- ---------------- ----------------
Income from investment operations
Net investment income 0.17 0.10 0.15 0.05
Net realized and unrealized gain on investments,
financial futures and options contracts, forward
currency contracts and foreign currency-related
transactions (0.06) 1.62 0.83 0.06
---------------- ---------------- ---------------- ----------------
Total from investment operations 0.11 1.72 0.98 0.11
---------------- ---------------- ---------------- ----------------
Less distributions from:
Net investment income (0.16) (0.09) (0.14) (0.04)
Amounts in excess of net investment income (0.09) - - (0.01)
Net realized gains (0.28) (0.26) - -
Amounts in excess of net realized gains - - - (0.08)
---------------- ---------------- ---------------- ----------------
Total distributions (0.53) (0.35) (0.14) (0.13)
---------------- ---------------- ---------------- ----------------
Net asset value, end of period $11.77 $12.19 $10.82 $9.98
================ ================ ================ ================
Total return (e) 0.91% 15.94% 9.85% 0.98% (b)(c)
Ratios/supplemental data
Net assets, end of period (000s) $241,072 $219,458 $155,422 $89,309
Ratio of expenses to average net assets 1.21% 1.11% 1.05% 1.08% (a)
Ratio of expenses to average net assets before
expense waivers 1.21% 1.11% 1.05% 1.27% (a)
Ratio of net investment income to average net
assets 0.72% 0.91% 1.48% 0.95% (a)
Portfolio turnover 25.55% 32.40 % 32.91% 14.71% (b)
Average commission rate per share (d) $0.0070 $0.0095 n/a n/a
</TABLE>
(a) Annualized.
(b) Not annualized.
(c) Total return would have been lower had certain expenses not been waived
or reimbursed.
(d) Represents total commissions paid on portfolio securities divided by the
total number of shares purchased or sold on which commissions were
charged. This disclosure is required by the SEC beginning in 1996.
(e) Total return includes the effects of entry/exit fees received by the
Fund; however, net asset value per share at the beginning and end of each
period used for calculating total return excludes such entry/exit fees.
* Commencement of Operations.
n/a Not applicable.
See Notes to the Financial Statements
==============================================================================
TIFF Emerging Markets Fund / Financial Highlights
==============================================================================
<TABLE>
<S> <C> <C> <C> <C>
Year Year Year Period
For a share outstanding Ended Ended Ended from 5/31/94 *
throughout each period 12/31/97 12/31/96 12/31/95 to 12/31/94
Net asset value, beginning of period $8.63 $8.45 $9.24 $10.00
---------------- --------------- ---------------- ----------------
Income from investment operations
Net investment income 0.33 0.01 - 0.01
Net realized and unrealized gain (loss) on
investments, forward currency contracts and
foreign currency-related transactions (0.36) 0.21 (0.79) (0.71)
---------------- --------------- ---------------- ----------------
Total from investment operations (0.03) 0.22 (0.79) (0.70)
---------------- --------------- ---------------- ----------------
Less distributions from:
Net investment income (0.24) (0.04) (0.00) # (0.01)
Amounts in excess of net investment income (0.27) (0.00) # (0.00) # -
Net realized gains - (0.00) # - -
Amounts in excess of net realized gains - - (0.00) # (0.05)
---------------- --------------- ---------------- ----------------
Total distributions (0.51) (0.04) (0.00) # (0.06)
---------------- --------------- ---------------- ----------------
Net asset value, end of period $8.09 $8.63 $8.45 $9.24
================ =============== ================ ================
Total return (e) (0.40%) 2.51% (8.39%) (6.97%) (b)(c)
Ratios/supplemental data
Net assets, end of period (000s) $83,836 $89,736 $59,486 $50,032
Ratio of expenses to average net assets 1.56% 1.62% 2.35% 1.83% (a)
Ratio of expenses to average net assets before
expense waivers 1.56% 1.62% 2.35% 2.25% (a)
Ratio of net investment income to average net
assets 0.95% 0.06% (0.15%) 0.40% (a)
Portfolio turnover 72.23% 79.96 % 104.30% 26.37% (b)
Average commission rate per share (d) $0.0013 $0.0095 n/a n/a
</TABLE>
a) Annualized.
(b) Not annualized.
(c) Total return would have been lower had certain expenses not been waived or
reimbursed.
(d) Represents total commissions paid on portfolio securities divided by the
total number of shares purchased or sold on which commissions were charged.
This disclosure is required by the SEC beginning in 1996.
(e) Total return includes the effects of entry/exit fees received by the Fund;
however, net asset value per share at the beginning and end of each period
used for calculating total return excludes such entry/exit fees.
n/a Not applicable.
# Rounds to less than $0.01.
* Commencement of Operations.
See Notes to the Financial Statements
==============================================================================
TIFF U.S. Equity Fund / Financial Highlights
==============================================================================
<TABLE>
<S> <C> <C> <C> <C>
Year Year Year Period
For a share outstanding Ended Ended Ended from 5/31/94 *
throughout each period 12/31/97 12/31/96 12/31/95 to 12/31/94
Net asset value, beginning of period $13.74 $12.36 $10.02 $10.00
---------------- --------------- ---------------- ----------------
Income from investment operations
Net investment income 0.50 0.20 0.20 0.15
Net realized and unrealized gain on investments,
financial futures and options contracts, short
sales,
and foreign currency-related transactions 3.94 2.52 3.37 0.19
---------------- --------------- ---------------- ----------------
Total from investment operations 4.44 2.72 3.57 0.34
---------------- --------------- ---------------- ----------------
Less distributions from:
Net investment income (0.40) (0.17) (0.22) (0.15)
Amounts in excess of net investment income (0.11) (0.10) - (0.00) #
Net realized gains (2.01) (1.07) (1.01) (0.01)
Amounts in excess of net realized gains - - - (0.16)
---------------- --------------- ---------------- ----------------
Total distributions (2.52) (1.34) (1.23) (0.32)
---------------- --------------- ---------------- ----------------
Net asset value, end of period $15.66 $13.74 $12.36 $10.02
================ =============== ================ ================
Total return (e) 33.01% 21.91% 36.02% 3.49% (b)(c)
Ratios/supplemental data
Net assets, end of period (000s) $255,714 $176,797 $109,901 $58,173
Ratio of expenses to average net assets 0.70% 0.82% 0.93% 0.85% (a)
Ratio of expenses to average net assets before
expense waivers 0.70% 0.82% 0.93% 1.06% (a)
Ratio of net investment income to average net
assets 1.34% 1.41% 1.67% 2.52% (a)
Portfolio turnover 108.52% 105.18 % 109.89% 44.59% (b)
Average commission rate per share (d) $0.0301 $0.0275 n/a n/a
</TABLE>
(a) Annualized.
(b) Not annualized.
(c) Total return would have been lower had certain expenses not been waived or
reimbursed.
(d) Represents total commissions paid on portfolio securities divided by the
total number of shares purchased or sold on which commissions were charged.
This disclosure is required by the SEC beginning in 1996.
(e) Total return includes the effects of entry/exit fees received by the Fund;
however, net asset value per share at the beginning and end of each period
used for calculating total return excludes such entry/exit fees.
n/a Not applicable.
# Rounds to less than $0.01.
* Commencement of Operations.
See Notes to the Financial Statements
===============================================================================
TIFF Bond Fund / Financial Highlights
===============================================================================
<TABLE>
<S> <C> <C> <C> <C>
Year Year Year Period
For a share outstanding Ended Ended Ended from 5/31/94 *
throughout each period 12/31/97 12/31/96 12/31/95 to 12/31/94
Net asset value, beginning of period $10.06 $10.33 $9.68 $10.00
---------------- --------------- ---------------- ----------------
Income from investment operations
Net investment income 0.64 0.67 0.67 0.36
Net realized and unrealized gain (loss) on
investments, financial futures and options
contracts,
forward currency contracts and foreign
currency-related transactions 0.27 (0.27) 1.01 (0.32)
---------------- --------------- ---------------- ----------------
Total from investment operations 0.91 0.40 1.68 0.04
---------------- --------------- ---------------- ----------------
Less distributions from:
Net investment income (0.64) (0.67) (0.66) (0.36)
Amounts in excess of net investment income (0.01) (0.00) # (0.01) (0.00) #
Net realized gains (0.08) - (0.36) -
---------------- --------------- ---------------- ----------------
Total distributions (0.73) (0.67) (1.03) (0.36)
---------------- --------------- ---------------- ----------------
Net asset value, end of period $10.24 $10.06 $10.33 $9.68
================ =============== ================ ================
Total return (d) 9.35% 3.75% 18.07% 0.46% (b)(c)
Ratios/supplemental data
Net assets, end of period (000s) $173,352 $127,491 $91,072 $79,671
Ratio of expenses to average net assets 0.56% 0.58% 0.96% 0.62% (a)
Ratio of expenses to average net assets before
expense waivers 0.56% 0.58% 0.96% 0.94% (a)
Ratio of net investment income to average net
assets 6.41% 6.64% 6.34% 6.37% (a)
Portfolio turnover 398.16% 332.21 % 406.24% 162.06% (b)
</TABLE>
(a) Annualized.
(b) Not annualized.
(c) Total return would have been lower had certain expenses not been waived
or reimbursed.
(d) Total return includes the effects of entry/exit fees received by the Fund;
however, net asset value per share at the beginning and end of each period
used for calculating total return excludes such entry/exit fees.
# Rounds to less than $0.01.
* Commencement of Operations.
See Notes to the Financial Statements
===============================================================================
TIFF Short-Term Fund / Financial Highlights
===============================================================================
<TABLE>
<S> <C> <C> <C> <C>
Year Year Year Period
For a share outstanding Ended Ended Ended from 5/31/94 *
throughout each period 12/31/97 12/31/96 12/31/95 to 12/31/94
Net asset value, beginning of period $9.99 $10.01 $10.00 $10.00
---------------- --------------- ---------------- ----------------
Income from investment operations
Net investment income 0.54 0.54 0.58 0.28
Net realized and unrealized gain (loss) on investments
and financial futures and options contracts (0.02) (0.02) 0.05 0.02
---------------- --------------- ---------------- ----------------
Total from investment operations 0.52 0.52 0.63 0.30
---------------- --------------- ---------------- ----------------
Less distributions from:
Net investment income (0.55) (0.54) (0.58) (0.28)
Amounts in excess of net investment income (0.01) (0.00) # (0.00) # (0.00) #
Net realized gains - - (0.04) (0.01)
Amounts in excess of net realized gains - - (0.00) # (0.01)
---------------- --------------- ---------------- ----------------
Total distributions (0.56) (0.54) (0.62) (0.30)
---------------- --------------- ---------------- ----------------
Net asset value, end of period $9.95 $9.99 $10.01 $10.00
================ =============== ================ ================
Total return (c) 5.30% 5.28% 6.43% 3.10% (b)
Ratios/supplemental data
Net assets, end of period (000s) $34,431 $63,470 $ 96,580 $34,283
Ratio of expenses to average net assets 0.47% 0.36% 0.42% 0.40% (a)
Ratio of expenses to average net assets before
expense waivers 0.56% 0.47% 0.54% 1.72% (a)
Ratio of net investment income to average net
assets 5.53% 5.35% 5.67% 4.98% (a)
</TABLE>
(a) Annualized.
(b) Not annualized.
(c) Total return would have been lower had certain expenses not been waived
or reimbursed.
# Rounds to less than $0.01.
* Commencement of Operations.
See Notes to the Financial Statements
==============================================================================
Notes to Financial
Statements
December 31, 1997
==============================================================================
1. Organization
TIFF Investment Program, Inc. ("TIP") was organized as a
Maryland corporation on December 23, 1993 and is registered
under the Investment Company Act of 1940, as amended, as an
open-end, management investment company. TIP currently has
six active Funds: TIFF Multi-Asset Fund ("Multi-Asset"),
TIFF International Equity Fund ("International Equity"),
TIFF Emerging Markets Fund ("Emerging Markets"), TIFF U.S.
Equity Fund ("U.S. Equity"), TIFF Bond Fund ("Bond"), and
TIFF Short-Term Fund ("Short-Term").
Investment Objectives
<TABLE>
<S> <C>
- ----------------------------------- ----------------------------------------------------------------------------------------
Fund Investment Objective
- ----------------------------------- ----------------------------------------------------------------------------------------
Multi-Asset Provide a growing stream of current income and appreciation of
principal that at least offsets inflation.
International Provide a growing stream of current income and appreciation of
Equity principal that at least offsets inflation by investing in common
stocks of companies domiciled in at least ten different countries.
Emerging Provide appreciation of principal that at least offsets inflation
Markets by investing in common stocks of companies domiciled in emerging
market countries.
U.S. Equity Provide a growing stream of current income and appreciation of
principal that at least offsets inflation by investing in common
stocks of U.S. domiciled companies.
Bond Provide: (1) a hedge against deflation; and (2) a high rate of
current income, subject to restrictions designed to ensure
liquidity and control exposure to interest rate and credit risk.
Short-Term Provide a high rate of current income, subject to restrictions
designed to control share price volatility.
</TABLE>
2. Summary of Significant Accounting Policies
The preparation of financial statements in conformity with
generally accepted accounting principles requires management
to make estimates and assumptions that affect the reported
amounts and disclosures in the financial statements. Actual
results could differ from those estimates.
Valuation of Investments
Securities listed on a securities exchange for which market
quotations are readily available are valued at their last
quoted sales price on the principal exchange on which they
are traded on valuation date or, if there is no such reported
sale on the valuation date, at the most recently quoted bid
price. Unlisted securities or securities for which
over-the-counter market quotations are readily available are
valued at the latest bid price. Time deposits, repurchase
agreements and reverse repurchase agreements are generally
valued at their cost plus accrued interest. Short-term debt
securities having a remaining maturity of 60 days or less are
valued at amortized cost, which approximates fair value, or
by amortizing their value on the 61st day prior to maturity
if their term to maturity from the date of purchase was
greater than 60 days. Options and future contracts are
valued at the last quoted bid price, except that open future
sales contracts are valued using the closing settlement price
or, in the absence of such price, the most recently quoted
asked price. Forward foreign currency exchange contracts are
valued at the current cost of covering or offsetting the
contracts.
Certain funds invest in limited partnerships formed for the
purpose of earning returns from alternative investment
strategies. Investments in limited partnerships held by the
Funds are presented, under procedures established by TIP's
Board of Directors, at estimated values, which generally
represent the respective Fund's proportionate share of the
net assets of the investee partnerships as reported by them.
These values are not necessarily indicative of the value the
Funds would receive in a current sale. The Fund's
proportionate share of the change in values of the investee
partnerships is recorded as change in unrealized appreciation
(depreciation) on investments in its statement of
operations. Investments in other open-ended funds or trusts
are valued at their closing net asset value per share on
valuation date which is their redeemable value.
Securities for which market quotations are not readily
available are valued at their fair value as determined in
good faith under consistently applied procedures established
by TIP's Board of Directors. Such procedures use fundamental
valuation methods which include, but are not limited to, the
analysis of: the effect of any restrictions on the resale of
the security, industry analysis and trends, significant
changes in the issuer's financial position, and any other
event which could have a significant impact on the value of
the security. Determination of fair value involves
subjective judgment, as the actual market value of a
particular security can be established only by negotiations
between the parties in a sales transaction. At December 31,
1997, the aggregate amount of securities fair valued were as
follows:
<TABLE>
<S> <C> <C> <C>
---------------------- ----------------------------------- -------------------------
Fund Amount % of Net Assets
---------------------- ----------------------------------- -------------------------
Multi-Asset $ 68,595,485 18.0%
U.S. Equity 8,133,120 3.2%
International Equity 28,827,231 12.0%
Emerging Markets 13,771,194 16.4%
</TABLE>
Investment Transactions and Investment Income
Securities transactions are recorded on the trade date (the
date on which the buy or sell order is executed). Interest
income and expenses are recorded on an accrual basis. The
Funds accrete discount or amortize premium using the
yield-to-maturity method on a daily basis. Dividend income
is recorded on the ex-dividend date, except certain
dividends from foreign securities that are recorded as soon
after the ex-dividend date as the Funds, using reasonable
diligence, become aware of such dividends. The Funds use the
specific identification method for determining realized gain
or loss on sales of securities and foreign currency
transactions.
Income Taxes
There is no provision for Federal income or excise tax since
each Fund has elected to be taxed as a regulated investment
company ("RIC") and intends to comply with the requirements
of Subchapter M of the Internal Revenue Code applicable to
RICs and to distribute all of its taxable income. Net
realized losses attributable to security transactions and
foreign currency transactions after October 31 are treated
as arising on the first day of a Fund's next fiscal year if
so elected by the Fund. The Funds may be subject to foreign
taxes on income, gains on investments or currency
repatriation. The Funds accrue such taxes, as applicable,
as a reduction from the related income, as and when such
income is earned.
Expenses
Expenses directly attributable to a Fund are charged to that
Fund's operations; expenses that are applicable to all Funds
are allocated among them based on their relative average
daily net assets. The costs incurred by TIP in connection
with the organization and initial registration of shares are
being amortized on a straight-line basis over a sixty-month
period.
Dividends to Shareholders
It is the policy of all Funds to declare dividends according
to the following schedule:
<TABLE>
<S> <C> <C>
- ---------------------- -------------------------------- ----------------------------------
Dividends from Net
Fund Investment Income Capital Gains Distributions
- ---------------------- -------------------------------- ----------------------------------
Multi-Asset Semi-annually Annually
International Equity Semi-annually Annually
Emerging Markets Annually Annually
U.S. Equity Quarterly Annually
Bond Daily Annually
Short-Term Daily Annually
</TABLE>
Dividends from net short-term capital gains and net
long-term capital gains of each Fund, if any, are normally
declared and paid annually, but each Fund may make
distributions on a more frequent basis to comply with the
distribution requirements of the Internal Revenue Code. To
the extent that a net realized capital gain can be reduced
by a capital loss carryover, such gain will not be
distributed. Dividends and distributions are recorded on
the ex-dividend date. Dividends and distributions from net
investment income and net realized capital gains are
determined in accordance with federal income tax
regulations, which may differ from generally accepted
accounting principles. These "book/tax" differences are
considered either temporary or permanent in nature. To the
extent these differences are permanent in nature, such
amounts are reclassified within the capital accounts based
on their federal tax-basis treatment; temporary differences
do not require reclassification. Dividends and
distributions that exceed net investment income or net
realized capital gains for financial reporting purposes, but
not for tax purposes, are reported as dividends in excess of
net investment income or distributions in excess of net
realized gain on investments. To the extent they exceed net
investment income or net realized gains for tax purposes,
they are reported as distributions of capital stock in
excess of par value.
During the year ended December 31, 1997, the following Funds
reclassified amounts arising from permanent book tax
differences:
<TABLE>
<S> <C> <C> <C>
Undistributed/(Distribution Capital Stock in
in Excess) of Net Investment Accumulated Net Realized Excess of Par
Fund Income Gain/(Loss) Value
Multi-Asset $ (49,911) $ 50,573 $ (662)
International Equity 1,382,158 (1,377,478) (4,680)
Emerging Markets 2,207,347 (2,205,019) (2,328)
U.S. Equity 4,041,396 (4,037,999) (3,397)
Bond (129,122) 132,942 (3,820)
Short-Term 39,668 4,451 (44,119)
</TABLE>
Net income and net assets of the Funds were not affected by
the above reclassifications.
Foreign Currency Translation
The books and records of the Funds are maintained in U.S.
dollars. Foreign currency amounts are translated into U.S.
dollars on the following basis:
(i) the foreign currency value of investments and other
assets and liabilities denominated in foreign currency
are translated at the closing rate of exchange on the
valuation date; and
(ii) purchases and sales of investments, income and
expenses are translated at the rate of exchange
prevailing on the respective dates of such transactions.
The resulting net foreign currency gain or loss is included
in the Statement of Operations.
The Fund does not generally isolate that portion of the
results of operations arising as a result of changes in the
foreign currency exchange rates from the fluctuations
arising from changes in the market prices of securities.
Accordingly, such foreign currency gain (loss) is included
in net realized and unrealized gain (loss) on investments.
However, the Fund does isolate the effect of fluctuations in
foreign exchange rates when determining the gain or loss
upon the sale or maturity of foreign currency denominated
debt obligations pursuant to U.S. federal income tax
regulations; such amount is categorized as foreign currency
gain or loss for both financial reporting and income tax
reporting purposes.
Net realized gains and losses on foreign currency-related
transactions represent net gains and losses from sales and
maturities of forward currency contracts, disposition of
foreign currencies, currency gains and losses realized
between the trade and settlement dates on securities
transactions and the difference between the amount of net
investment income accrued and the U.S. dollar amount
actually received.
Forward Currency Contracts
The Funds may enter into forward currency contracts in
connection with settling planned purchases or sales of
securities or to hedge the currency exposure associated with
some or all of the Fund's portfolio securities. A forward
currency contract is an agreement between two parties to buy
or sell a currency at a set price on a future date. The
market value of a forward currency contract fluctuates with
changes in forward currency exchange rates. Forward
currency contracts are marked to
market daily and the change in value is recorded by the
Funds as an unrealized gain or loss. When a forward
currency contract is extinguished through delivery, the
Funds record a realized gain or loss on foreign currency
related transactions equal to the difference between the
value of the contract at the contract value and the value of
the contract at the time it was extinguished. These
contracts may involve market risk in excess of the
unrealized gain or loss reflected in the Fund's Statement of
Assets and Liabilities. In addition, the Funds could be
exposed to risk if the counterparties are unable to meet the
terms of the contracts or if the value of the currency
changes unfavorably to the U.S. dollar.
Appendix B to the Notes to the Financial Statements details
each Fund's outstanding forward currency contracts at
December 31, 1997.
Financial Futures Contracts
The Funds are engaged in trading financial futures
contracts. The Funds are exposed to market risk as a result
of changes in the value of the underlying financial
instruments. Investments in financial futures require a fund
to "mark to market" on a daily basis, which reflects the
change in the market value of the contract at the close of
each day's trading. Accordingly, variation margin payments
are made to or received from the broker in the amount of
daily unrealized gains or losses. When the contracts are
closed, the Fund recognizes a realized gain or loss. These
investments require initial margin deposits which consist of
cash or cash equivalents, equal to approximately 5-10% of
the contract amount.
Each Fund may use futures contracts to manage its exposure
to the stock and bond markets and to fluctuations in
currency values. Futures contracts tend to increase or
decrease the Funds' exposure to the underlying instrument or
hedge other Fund investments. Futures contracts involve, to
varying degrees, risk of loss in excess of the variation
margin included in the Statement of Assets and Liabilities.
Losses may arise from the changes in the value of the
underlying instrument, if there is an illiquid secondary
market for the contracts, or if counterparties do not
perform under the contract terms. Futures contracts are
valued at the settlement price established each day by the
board of trade or exchange on which they are traded.
At December 31, 1997, the Funds held assets with a broker as initial margin
for financial futures:
- ----------------------------------------------------------- -------------------
Segregated
Fund Assets
- ----------------------------------------------------------- -------------------
Multi-Asset $ 945,701
International Equity 1,742,009
U.S. Equity 741,814
Bond 63,742
Short-Term 499,544
Appendix C of the Notes to the Financial Statements details
each Fund's open futures contracts at December 31, 1997.
Short Selling
The Funds may sell securities they do not own in
anticipation of a decline in the market price of such
securities or in order to hedge portfolio positions. The
Fund will generally borrow the security sold in order to
make delivery to the buyer. Upon entering into a short
position, the Fund records the proceeds as a Deposit with
Broker in its Statement of Assets and Liabilities and
establishes an offsetting liability for the securities sold
under the short sale agreement. The cash is retained by the
Fund's broker as collateral for the short position. The
liability is marked to market while it remains open to
reflect the current settlement obligation. Until the
security is replaced, the Fund is required to pay the lender
any dividend or interest earned. Such payments are recorded
as expenses to the Fund. When a closing purchase is entered
into by the Fund, a gain or loss equal to the difference
between the proceeds originally received and the purchase
cost is realized.
The Fund, in "short selling," sells borrowed securities
which must at some date be repurchased and returned to the
lender. If the market value of securities sold short
increases, the Fund may realize losses upon repurchase in
amounts which may exceed the liability on the Statement of
Assets and Liabilities. Further, in unusual circumstances,
the Fund may be unable to repurchase securities to close its
short position except at prices above those previously
quoted in the market.
Options
When a Fund purchases an option, an amount equal to the
premium paid by the Fund is included in the Fund's Statement
of Assets and Liabilities as an investment and subsequently
marked to market to reflect the current market value of the
option purchased. The current market value of a purchased
option is the last sale price on the market on which it is
principally traded. If the purchased option expires, the
Fund realizes a loss in the amount of the premium originally
paid. If the Fund enters into a closing sale transaction,
it realizes a gain or loss, depending on whether the
proceeds from the sale are greater or less than the cost of
the option.
If the Fund exercises a call option, the cost of the
securities acquired by exercising the call option is
increased by the premium paid to buy the call option. If
the Fund exercises a put option, it realizes a gain or loss
from the sale of the underlying security and the proceeds
from such sale are decreased by the premium originally
paid. The risk associated with purchasing options is
limited to the premium originally paid.
When a Fund writes an option, an amount equal to the premium
received by the Fund is included in the Fund's Statement of
Assets and Liabilities as a liability and subsequently
marked to market to reflect the current value of the option
written. The current market value of a written option is
the last sale price on the market on which it is principally
traded. If the written option expires, the Fund realizes a
gain in the amount of the premium received. If the Fund
enters into a closing transaction, it recognizes a gain or
loss, depending on whether the cost of the purchase is less
than or greater than the premium received.
If a written call option is exercised, the proceeds from the
security sold are increased by the premium received. If a
put option is exercised, the cost basis of the security
purchased by the Fund is reduced by the premium received.
The Fund as a writer of an option has no control over
whether the underlying securities may be sold (call) or
purchased (put) and as a result bears the market risk of an
unfavorable change in the price of the security underlying
the written option. Written options present risk of loss in
excess of related amounts shown on the Statement of Assets
and Liabilities.
Each Fund may use option contracts to manage its exposure to
the stock and bond markets and to fluctuations in interest
rates and currency values. Option contracts tend to
increase or decrease the Fund's exposure to the underlying
instrument, or hedge other Fund investments.
Net Asset Value
The net asset value per share is calculated on a daily basis
by dividing the assets of each Fund, less its liabilities,
by the number of outstanding shares of the Fund.
3. Investment Advisory Agreement and Money Manager Agreements
TIP's Board of Directors has approved investment advisory
agreements with Foundation Advisers, Inc. ("FAI"). Each
Fund pays FAI a maximum monthly fee calculated by applying
the following annual rates to such Fund's average daily net
assets for the month:
<TABLE>
<S> <C> <C> <C> <C> <C> <C>
Multi- Int'l Emerging U.S. Short-
Assets Asset Equity Markets Equity Bond Term
On the first $500 million 0.20 % 0.15 % 0.15 % 0.15 % 0.10 % 0.03 %
On the next $500 million 0.18 % 0.13 % 0.13 % 0.13 % 0.08 % 0.03 %
On the next $500 million 0.15 % 0.11 % 0.11 % 0.11 % 0.06 % 0.02 %
On the next $500 million 0.13 % 0.09 % 0.09 % 0.09 % 0.05 % 0.02 %
On the next $500 million 0.11 % 0.07 % 0.07 % 0.07 % 0.04 % 0.01 %
On the remainder
(> $2.5 billion) 0.09 % 0.05 % 0.05 % 0.05 % 0.03 % 0.01 %
</TABLE>
TIP's Board of Directors has approved Money Manager
agreements with each of the Money Managers. Money Managers
will receive annual management fees equal to a stated
percentage of the value of Fund assets under management that
is adjusted upwards or downwards, proportionately, to
reflect actual investment performance over the applicable
time period relative to a chosen benchmark rate of return.
Certain Money Managers, however, will receive management
fees equal to a flat percentage per annum of assets under
management with a single rate or on a descending scale.
Appendix A to the Notes to the Financial Statements
identifies Money Managers who provide services to the Funds
and the minimum, maximum effective fee rates applicable
during the year ended December 31, 1997. Unless otherwise
indicated, the management fee received by a Money Manager
varies based on the Money Manager's investment performance.
Pursuant to an Administration Agreement, AMT Capital
Services, two employees of which serve as officers of TIP,
earn a fee for providing fund administration services to TIP
according to the following schedule: 0.07% of the first $300
million of the average daily net assets of TIP, 0.05% of the
next $2.7 billion, 0.04% of the next $2.0 billion, and 0.03%
of the average daily net assets over $5.0 billion. In
addition, TIP has agreed to pay AMT Capital an incentive fee
not to exceed 0.02% of average daily net assets for reducing
the expense ratio of one or more Funds of TIP below certain
levels specified for each Fund.
During the year ended December 31, 1997, the adviser waived
$11,675, the Fund's Administrator waived $3,315, and the
Fund's Money Manager waived $22,150 in fees for the
Short-Term Fund.
4. Investment Transactions
Purchase cost and proceeds from sales of investment
securities, other than short-term investments, for the
period from January 1, 1997 to December 31, 1997 were as
follows:
<TABLE>
<S> <C> <C> <C> <C>
Purchases Purchases Sales Sales
Fund U.S. Government Other Securities U.S. Government Other Securities
Multi-Asset $143,473,271 $ 596,604,997 $ 137,345,767 $ 404,312,367
International Equity - 83,894,386 - 57,925,064
Emerging Markets - 59,613,432 - 66,691,457
U.S. Equity - 242,195,275 - 206,772,511
Bond 148,036,612 411,136,922 143,120,529 370,376,822
Short-Term 270,846,453 682,732,742 270,902,286 701,302,417
</TABLE>
For Federal income tax purposes, the cost of securities
owned at December 31, 1997 was substantially the same as for
financial reporting purposes. Accordingly, the aggregate
gross unrealized appreciation and depreciation and the net
unrealized appreciation/(depreciation) on securities owned
and securities sold short at December 31, 1997 for each Fund
are as follows:
<TABLE>
<S> <C> <C> <C>
Fund Gross Appreciation Gross Depreciation Net Unrealized
Appreciation/
(Depreciation)
Multi-Asset $ 31,052,176 $ (36,519,301 $ ,467,125)
International Equity 49,984,776 (27,452,878) 22,531,898
Emerging Markets 8,339,060 (16,680,767) (8,341,707)
U.S. Equity 51,087,705 (4,502,567) 46,585,138
Bond 3,684,431 (434,270) 3,250,161
Short-Term 20,769 (37,091) (16,322)
</TABLE>
At December 31, 1997, the approximate amounts of available
realized capital losses to offset future net capital gains
through the dates indicated available to the Funds is as
follows:
Fund Amount Expiration Date
Emerging Markets $ 4,500,000 December 31, 2003
Short-Term 264,000 December 31, 2005
During the year ended December 31, 1997, the Bond Fund
utilized approximately $338,000 and the Emerging Markets
Fund utilized approximately $2,500,000 of capital loss
carryovers from prior years.
5. Repurchase and Reverse Repurchase Agreements
Each Fund may enter into repurchase agreements under which a
bank or securities firm that is a primary or reporting
dealer in U.S. Government securities agrees, upon entering
into a contract, to sell U.S. Government securities to a
Fund and repurchase such securities from such Fund at a
mutually agreed upon price and date.
Each Fund is also permitted to enter into reverse repurchase
agreements under which a primary or reporting dealer in U.S.
Government securities purchases U.S. Government securities
from a Fund and such Fund agrees to repurchase the
securities at an agreed upon price and date.
Each Fund will engage in repurchase and reverse repurchase
transactions with parties approved by the Fund's board of
directors on the basis of such party's creditworthiness.
Securities pledged as collateral for repurchase agreements
are held by the custodian bank until maturity of the
repurchase agreements. The Funds may also invest in
tri-party repurchase agreements for which securities held as
collateral are maintained in a segregated account by the
broker's custodian bank until maturity of the repurchase
agreement. Provisions of the repurchase agreements and the
procedures adopted by the Funds require that the market
value of the collateral, including accrued interest thereon,
is sufficient in the event of default by the counterparty.
If the counterparty defaults and the value of the collateral
declines or if the counterparty enters an insolvency
proceeding, realization of the collateral may be delayed or
limited.
6. Capital Share Transactions
As of December 31, 1997, each Fund has 500,000,000 shares of
$0.001 par value capital stock authorized. The Funds may
charge entrance or exit fees on subscriptions or
redemptions, respectively. While there are no sales
commissions (loads) or 12b-1 fees, the U.S. Equity Fund
assesses entry and exit fees of 0.25% of capital invested or
redeemed; the Multi-Asset and International Equity Funds
assess entry and exit fees of 0.75%; and the Emerging
Markets Fund assesses entry and exit fees of 1.00%. These
fees, which are paid to the Funds directly, not to FAI or
other vendors supplying services to the Funds, are designed
to allocate transactions costs associated with purchases and
redemptions of Fund's shares. These fees are deducted from
the amount invested or redeemed; they cannot be paid
separately. Entry and exit fees may be waived at FAI's
discretion when the purchase or redemption will not result
in significant transaction costs for the affected Fund
(e.g., for transactions involving in-kind purchases and
redemptions. Such fees are retained by the Funds and
included in proceeds from shares sold or deducted from
distributions for redemptions. Transactions in capital
stock are listed in Appendix D to the Notes to the Financial
Statements.
7. Securities Lending
The Funds may lend portfolio securities to qualified
borrowers. The terms of the lending agreements require that
loans are secured at all times by cash or U.S. government
securities in an amount greater than 102% of the market
value of the securities loaned (105% in case of foreign
securities), plus accrued interest and dividends, determined
on a daily basis and adjusted accordingly. The Funds will
regain record ownership of loaned securities to exercise
certain beneficial rights; however, the Funds may bear the
risk of delay in recovery of, or even loss of rights in, the
securities loaned should the borrower fail financially. The
Funds' custodian acts as the lending agent. If cash
collateral is received, the lending agent invests the
amounts received in short-term securities and cash
equivalents on behalf of the Fund. At December 31, 1997, the
Funds with securities on loan received cash as collateral
which was subsequently invested in cash equivalents. Any
income earned on such investments in excess of agency fees
and of a predetermined rebate to the borrowers is earned by
the Funds and is recorded by the Funds as interest income.
As of December 31, 1997, the value of the securities loaned
and the amount of cash collateral received with respect to
such loans were as follows:
- --------------------------------- --------------------- -----------------------
Value of Loaned Cash
Fund Securities Collateral Received
- --------------------------------- --------------------- ----------------------
International Equity $ 7,916,442 $ 9,416,417
Emerging Markets 3,663,853 3,787,835
8. Delayed Delivery Transactions
The Funds may purchase or sell securities on a when-issued
or forward commitment basis. Payment and delivery may take
place a month or more after the date of the transaction.
The price of the underlying securities and the date when the
securities will be delivered and paid for are fixed at the
time the transaction is negotiated. The Funds identify in
their records securities as segregated with a value at least
equal to the amount of the purchase commitment.
Bond Fund enters into "TBA" (to be announced) purchase
commitments to purchase mortgage-backed securities for a
fixed unit price at a future date beyond customary
settlement time. Although the unit price has been
established, the principal value has not been finalized.
However, the amount of the commitment will not fluctuate
more than 2.0% from the principal amount. TBA purchase
commitments may be considered securities in themselves, and
involve a risk of loss if the value of the security to be
purchased declines prior to the settlement date, which risk
is in addition to the risk of decline in the value of the
Fund's other assets. Unsettled TBA purchase commitments are
valued at the current market value of the underlying
securities, generally according to the procedures described
under "Valuation of Investments" above. Risks may arise
upon entering into these contracts from the potential
inability of counterparties to meet the terms of their
contracts.
Although the Fund will generally enter into TBA purchase
commitments with the intention of acquiring securities for
its portfolio, the Fund may dispose of a commitment prior to
settlement if the Fund's Money Manager deems it appropriate
to do so.
Bond Fund enters into TBA sale commitments to hedge its
portfolio or to sell mortgage-backed securities it owns
under delayed delivery arrangements. Proceeds of TBA sale
commitments are not received until the contractual
settlement date. During the time a TBA sale commitment is
outstanding, equivalent deliverable securities, or an
offsetting TBA purchase commitment (deliverable on or before
the sale commitment date), are held as "cover" for the
transaction.
Unsettled TBA sale commitments are valued at the current
market value of the underlying securities, generally
according to the procedures described under "Valuation of
Investments" above. The contract is marked to market daily
and the change in market value is recorded by the Fund as an
unrealized gain or loss. If the TBA sale commitment is
closed through the acquisition of an offsetting purchase
commitment, the Fund realizes a gain or loss on the
commitment without regard to any unrealized gain or loss on
the underlying security. If the Fund delivers securities
under the commitment, the Fund realizes a gain or loss from
the sale of the securities upon the unit price established
at the date the commitment was entered into.
9. Concentration of Risks
The Bond, Short-Term and Multi-Asset Funds invest in fixed
income securities issued by banks and other financial
companies the market values of which may change in response
to interest rate changes. Although, the Bond, Short-Term
and Multi-Asset Funds generally maintain diversified
portfolios, the ability of the issuers of the respective
Fund's portfolio securities to meet their obligations may be
affected by changing business and economic conditions in a
specific industry, state or region.
The International Equity and Emerging Markets Funds invest
in securities of foreign issuers in various countries.
These investments may involve certain considerations and
risks not typically associated with investments in United
States, as a result of, among other factors, the possibility
of future political and economic developments and the level
of governmental supervision and regulation of securities
markets in the respective countries. While the Funds'
investment in emerging markets debt is limited, the yields
of these obligations reflect perceived credit risk.
10. Principal Members
The schedule below shows the number of Members each owning
10% or more of a Fund and the total percentage of the Fund
held by such Members.
Fund Number % of Fund Held
International Equity Fund 2 40
Emerging Markets Fund 3 53
U.S. Equity Fund 2 27
Bond Fund 1 15
Short-Term Fund 1 28
Appendix A
Money Manager Fee as Percent of Assets Managed
for the Year Ended December 31, 1997
<TABLE>
<S> <C> <C> <C>
Effective
Minimum Maximum Fee Rate (c)
TIFF Multi-Asset Fund
Bee & Associates, Inc. 0.15 2.00 0.28
Grantham, Mayo, Van Otterloo & Co. 0.30 1.00 0.00 (d)
Harding, Loevner Management, L.P. 0.10 1.50 0.13 ***
Seix Investment Advisors, Inc. 0.10 0.80 0.12 ***
Standard Pacific Capital LLC 0.15 2.00 0.51
Wellington Management Company LLP 0.45* 0.45 0.45
TIFF International Equity Fund
Bee & Associates, Inc. 0.15 2.00 2.35 (a)
Delaware International Advisers, Ltd. 0.30* 0.50 0.50
Harding, Loevner Management, L.P. 0.10 1.50 0.58
Marathon Asset Management, Ltd. 0.15 1.60 0.53
Mercury Asset Management International, Ltd. 0.50** 0.50 0.50
TIFF Emerging Markets Fund
Emerging Markets Management 0.40 3.00 1.30
Lazard Freres Asset Management 0.50** 0.50 0.50
TIFF U.S. Equity Fund
Martingale Asset Management, L.P. 0.05* 0.10 0.09
Palo Alto Investors 0.10 2.00 0.10
Shapiro Capital Management 0.50 0.95 0.52 ***
Westport Asset Management, Inc. 0.15 2.00 1.40
TIFF Bond Fund
Atlantic Asset Management Partners, L.L.C. 0.10 0.60 0.10
Seix Investment Advisors, Inc. 0.10 0.80 0.43
Smith Breeden Associates, Inc. 0.10 0.85 0.13
TIFF Short-Term Fund
Fischer Francis Trees & Watts, Inc. 0.15* 0.20 0.08 (b)
</TABLE>
* Money Manager receives a fee that does not include performance
component.
** Money Manager receives a straight asset-based fee
regardless of the amount of assets managed for TIP
(i.e., there are neither "breakpoints" in the fee agreement
nor a performance component).
*** Annualized.
(a) Rate includes a 1996 performance fee adjustment paid in 1997 in
accordance with the Money Manager Agreement.
(b) The Money Manager has agreed to voluntarily waive a portion of
its Money Manager Fee.
(c) After fee waivers.
(d) The Money Manager received no fees as the assets managed
represented investments in affiliated mutual funds.
Appendix B
Open Forward Currency Contracts
<TABLE>
<S> <C> <C> <C> <C>
Unrealized
U.S. Dollar Foreign Currency Appreciation/
Contracts Description Receivable/(Payable) Receivable/(Payable) (Depreciation)
Multi-Asset Fund
Buy Contracts - Forwards
5,177,258 Finnish Markka 1/15/98 $ (979,146) $ 951,929 $(27,217)
14,541,316 French Franc 1/15/98 (2,489,397) 2,418,112 (71,285)
789,748 Great British Pound 1/15/98 (1,320,186) 1,298,879 (21,307)
4,903,715 Norwegian Krone 1/15/98 (694,814) 665,999 (28,815)
5,803,490 Swedish Krona 1/15/98 (403,316) 386,096 (17,220)
2,227,127 Swiss Franc 1/15/98 (1,586,757) 1,527,915 (58,842)
--------------------------------------------------------
Totals (7,473,616) 7,248,930 (224,686)
--------------------------------------------------------
Buy Contracts - Spots
494,680 Netherlands Guilder 1/2/98 (247,080) 244,174 (2,906)
1,672,380 Phillipine Peso 1/5/98 (41,914) 41,810 (104)
274,976 South African Rand 1/6/98 (56,626) 56,441 (185)
--------------------------------------------------------
Totals
(345,620) 342,425 (3,195)
--------------------------------------------------------
Sell Contracts - Forwards
5,184,396 Finnish Markka 1/15/98 985,477 (953,242) 32,235
15,874,873 French Franc 1/15/98 2,701,497 (2,639,872) 61,625
907,779 Great British Pound 1/15/98 1,470,102 (1,493,002) (22,900)
145,760 Irish Punt 1/15/98 213,393 (207,540) 5,853
6,692,082 Norwegian Krone 1/15/98 946,061 (908,886) 37,175
157,835,457 Portuguese Escudo 1/15/98 877,229 (857,804) 19,425
3,061,490 Swedish Krona 1/15/98 405,123 (386,096) 19,027
3,101,806 Swiss Franc 1/15/98 2,145,655 (2,127,986) 17,669
--------------------------------------------------------
Totals 9,744,537 (9,574,428) 170,109
--------------------------------------------------------
Sell Contracts - Spots
11,640 Finnish Markka 1/2/98 2,149 (2,138) 11
22,522 Finnish Markka 1/5/98 4,153 (4,138) 15
288,630 German Deutsche Mark 1/2/98 162,755 (160,593) 2,162
284,050 German Deutsche Mark 4/20/98 169,582 (159,032) 10,550
7,523 Great British Pound exp. 1/2/98 12,553 (12,380) 173
60 Great British Pound exp. 1/6/98 100 (99) 1
120,889 Norwegian Krone 1/2/98 16,637 (16,405) 232
247,019 Norwegian Krone 1/5/98 33,762 (33,528) 234
--------------------------------------------------------
Totals
401,691 (388,313) 13,378
--------------------------------------------------------
==================
Net unrealized depreciation $ (44,394)
==================
</TABLE>
Appendix B (continued)
Open Forward Currency Contracts
<TABLE>
<S> <C> <C> <C> <C>
Unrealized
U.S. Dollar Foreign Currency Appreciation/
Contracts Description Receivable/(Payable) Receivable/(Payable) (Depreciation)
International Equity Fund
Buy Contracts - Spots
53,117 South African Rand 1/6/98 $ (10,939) $ 10,903 $ (36)
--------------------------------------------------------
Sell Contracts - Forwards
290,000,000 Japanese Yen 2/10/98 2,497,416 (2,237,479) 259,937
--------------------------------------------------------
Sell Contracts - Spots
33,899 Australian Dollar 1/5/98 22,204 (22,098) 106
3,910 Great British Pound 1/6/98 6,495 (6,433) 62
21,794 Swedish Krona 1/2/98 (2,747) 2,752 5
--------------------------------------------------------
Totals 31,451 (31,278) 173
--------------------------------------------------------
==================
Net unrealized appreciation $ 260,074
==================
Emerging Markets Fund
Buy Contracts - Spots
102,229 Malaysian Ringgit 1/5/98 (26,203) 26,366 163
2,116,720 Phillipine Peso 1/5/98 (53,184) 52,918 (266)
354,283 South African Rand 1/6/98 (72,962) 72,720 (242)
--------------------------------------------------------
Totals (152,349) 152,004 (345)
--------------------------------------------------------
Sell Contracts - Spots
538,297 Phillipine Peso 1/5/98 13,525 (13,457) 68
21,672 South African Rand 1/6/98 4,463 (4,448) 15
--------------------------------------------------------
Totals 17,988 (17,905) 83
--------------------------------------------------------
Net unrealized depreciation $ (262)
==================
</TABLE>
Appendix C
Open Futures Contracts as of December 31, 1997
<TABLE>
<S> <C> <C> <C> <C>
Value at Unrealized
Number of Cost/ December 31, Appreciation
Contracts Multi-Asset Fund (Proceeds) 1997 (Depreciation)
Long Futures Contracts
12 March '98 S&P 500 $ 2,958,600 $ 2,937,300 $(21,300)
108 March '98 Midcap 400 18,086,050 18,098,100 12,050
19 March '98 5 Yr Treasury Notes 2,054,969 2,063,875 8,906
Short Futures Contracts
(5) March '98 S&P 500 (1,231,125) (1,223,875) 7,250
================
Total $ 6,906
================
U.S. Equity Fund
Long Futures Contracts
42 March '98 S&P 500 10,172,400 10,280,550 $ 108,150
================
Bond Fund
Long Futures Contracts
19 March '98 10 Yr Treasury Notes 2,119,688 2,130,969 $ 11,281
20 March '98 5 Yr Treasury Notes 2,166,344 2,172,500 6,156
23 March '98 U.S. 2 Yr Treasury Note 4,768,961 4,777,891 8,930
Short Futures Contracts
(3) March '98 Euro (705,225) (705,525) (300)
(7) March '98 U.S. 10 Yr Treasury Notes (779,568) (785,094) (5,526)
(14) March '98 U.S. Treasury Bonds (1,687,450) (1,686,563) 887
(3) Sep '98 Euro (705,675) (706,200) (525)
================
Total $ 20,903
================
Short-Term Fund
Long Futures Contracts
9 June '98 Euro 2,117,154 2,119,725 $ 2,571
================
</TABLE>
Appendix D
Capital Share Transactions
<TABLE>
<S> <C> <C> <C> <C>
Year Ended 12/31/97 Year Ended 12/31/96
Multi-Asset Fund Shares Amount Shares Amount
Shares Sold 16,711,363 $ 211,966,687 12,414,168 $ 148,942,630
Shares Reinvested 2,238,996 26,221,425 741,729 8,952,996
Exit/Entrance Fee - 1,224,865 - 854,784
------------------------------------------ ------------------------------------------
Subtotal 18,950,359 239,412,977 13,155,897 158,750,410
Shares Redeemed (4,198,208) (53,888,979) (3,407,420) (40,828,439)
========================================== ==========================================
Net Increase 14,752,151 $ 185,523,998 9,748,477 $ 117,921,971
========================================== ==========================================
Year Ended 12/31/97 Year Ended 12/31/96
International Equity Fund Shares Amount Shares Amount
Shares Sold 2,546,568 $31,880,666 7,045,139 $ 80,119,170
Shares Reinvested 788,565 9,438,744 485,076 5,862,190
Exit/Entrance Fees - 227,931 - 424,816
------------------------------------------ ------------------------------------------
Subtotal 3,335,133 41,547,341 7,530,215 86,406,176
Shares Redeemed (862,899) (10,930,008) (3,898,610) (44,032,095)
========================================== ==========================================
Net Increase 2,472,234 $ 30,617,333 3,631,605 $ 42,374,081
========================================== ==========================================
Year Ended 12/31/97 Year Ended 12/31/96
Emerging Markets Fund Shares Amount Shares Amount
Shares Sold 1,705,875 $ 15,529,455 6,273,660 $ 56,965,180
Shares Reinvested 482,627 3,919,420 31,948 275,715
Exit/Entrance Fees - 367,820 - 331,463
------------------------------------------ ------------------------------------------
Subtotal 2,188,502 19,816,695 6,305,608 57,572,358
Shares Redeemed (2,226,500) (21,228,824) (2,946,642) (26,561,431)
========================================== ==========================================
Net Increase/(Decrease) (37,998) $ (1,412,129) 3,358,966 $ 31,010,927
========================================== ==========================================
Year Ended 12/31/97 Year Ended 12/31/96
U.S. Equity Fund Shares Amount Shares Amount
Shares Sold 2,063,678 $ 32,136,175 4,368,046 $ 59,674,611
Shares Reinvested 1,755,692 27,538,988 1,019,746 14,143,456
Exit/Entrance Fees - 86,917 - 76,112
------------------------------------------ ------------------------------------------
Subtotal 3,819,370 59,762,080 5,387,792 73,894,179
Shares Redeemed (360,988) (5,646,464) (1,408,508) (19,289,674)
========================================== ==========================================
Net Increase 3,458,382 $ 54,115,616 3,979,284 $ 54,604,505
========================================== ==========================================
Year Ended 12/31/97 Year Ended 12/31/96
Bond Fund Shares Amount Shares Amount
Shares Sold 5,708,623 $ 57,808,297 4,110,390 $ 41,685,035
Shares Reinvested 697,803 6,985,148 364,890 3,645,717
------------------------------------------ ------------------------------------------
Subtotal 6,406,426 64,793,445 4,475,280 45,330,752
Shares Redeemed (2,162,530) (21,721,874) (610,475) (6,147,715)
========================================== ==========================================
Net Increase 4,243,896 $ 43,071,571 3,864,805 $ 39,183,037
========================================== ==========================================
Year Ended 12/31/97 Year Ended 12/31/96
Short-Term Fund Shares Amount Shares Amount
Shares Sold 4,512,506 $ 44,996,755 10,421,535 $ 104,066,028
Shares Reinvested 162,340 1,626,271 398,510 3,981,140
------------------------------------------ ------------------------------------------
Subtotal 4,674,846 46,623,026 10,820,045 108,047,168
Shares Redeemed (7,569,665) (75,510,887) (14,116,543) (140,977,340)
========================================== ==========================================
Net Increase/(Decrease) (2,894,819) $ (28,887,861) (3,296,498) $ (32,930,172)
========================================== ==========================================
</TABLE>
Appendix E
Summary of Transactions with Affiliated Companies
During the Year Ended December 31, 1997
<TABLE>
<S> <C> <C> <C> <C> <C> <C>
Change in
Value at Unrealized
Realized Dividend December 31, Appreciation/
Affiliate Purchase Cost Sales Proceeds Gain/(Loss) Income 1997 (Depreciation)
Multi-Asset
Grantham, Mayo, and Van
Otterloo and Co. $ 77,528,937 $ 30,135,481 $ 321,305 643,156 43,349,197 (4,936,453)
TCW Funds Management, Inc. 3,128,321 9,287,021 200,015 194,461
- (160,640)
-------------------------------------------------------------------------------------------
===========================================================================================
Total $ 80,657,258 39,422,502 521,320 837,617 43,349,197 (5,097,093)
===========================================================================================
===========================================================================================
International Equity
Lazard Freres Asset Management $ - $ 3,353,201 $ 353,201 $ - $ - (43,758)
===========================================================================================
===========================================================================================
U.S. Equity
Grantham, Mayo, and Van
Otterloo and Co. - 2,822,231 $ 274,009 $ - $ - (277,930)
===========================================================================================
===========================================================================================
Short-Term
Fischer Francis Trees & Watts,
Inc. $ 2,236,453 $ 14,646,318 $ (15,625) $ 290,294 $ (12,508)
-
===========================================================================================
===========================================================================================
</TABLE>
These transactions represent investments in pooled investment vehicles
affiliated with the indicated Money Managers. No sales commissions were
incurred by the Funds in connection with these transactions.
63
Report of Independent Accountants
February 26, 1998
To the Board of Directors and Shareholders of
TIFF Investment Program, Inc.
In our opinion, the accompanying statements of assets and
liabilities, including the schedules of investments, and the
related statements of operations and of changes in net assets
and the financial highlights present fairly, in all material
respects, the financial position of TIFF Multi-Asset Fund,
TIFF International Equity Fund, TIFF Emerging Markets Fund,
TIFF U.S. Equity Fund, TIFF Bond Fund and TIFF Short-Term
Fund (constituting the TIFF Investment Program (TIP),
hereafter referred to as the "Funds"), at December 31, 1997,
and the results of each of their operations, the changes in
each of their net assets, and the financial highlights for
each of the periods indicated, in conformity with generally
accepted accounting principles. These financial statements
and financial highlights (hereafter referred to as "financial
statements") are the responsibility of the Funds' management;
our responsibility is to express an opinion on these
financial statements based on our audits. We conducted our
audits of these financial statements in accordance with
generally accepted auditing standards which require that we
plan and perform the audit to obtain reasonable assurance
about whether the financial statements are free of material
misstatement. An audit includes examining, on a test basis,
evidence supporting the amounts and disclosures in the
financial statements, assessing the accounting principles
used and significant estimates made by management, and
evaluating the overall financial statement presentation. We
believe that our audits, which included confirmation of
securities owned at December 31, 1997 by correspondence with
the custodian and brokers and the application of alternative
auditing procedures where confirmations from brokers were not
received, provide a reasonable basis for the opinion
expressed above.
Price Waterhouse LLP
1177 Avenue of the Americas
New York, New York
<TABLE>
<S> <C>
ADVISER MONEY MANAGERS
Foundation Advisers, Inc.
2405 Ivy Road TIFF Multi-Asset Fund
Charlottesville, VA 22903 Bee & Associates, Inc.
phone (804) 984-0084 Grantham, Mayo, Van Otterloo & Co.
fax (804) 977-4479 Harding, Loevner Management, L.P.
Seix Investment Advisors, Inc.
Standard Pacific Capital LLC
CUSTODIAN Wellington Management Company LLP
FUND ACCOUNTING AGENT
TRANSFER AGENT TIFF International Equity Fund
DIVIDEND DISBURSING AGENT Bee & Associates, Inc.
Investors Bank & Trust Company Delaware International Advisers, Ltd.
P.O. Box 1537 Harding, Loevner Management, L.P.
Boston, MA 02205 Marathon Asset Management, Ltd.
Mercury Asset Management
FUND ADMINISTRATOR TIFF Emerging Markets Fund
AND DISTRIBUTOR Emerging Markets Management
AMT Capital Services, Inc. Lazard Freres Asset Management
600 Fifth Avenue
New York, NY 10020 TIFF U.S. Equity Fund
Martingale Asset Management, L.P.
Palo Alto Investors
LEGAL COUNSEL Shapiro Capital Management
Dechert Price & Rhoads Westport Asset Management, Inc.
1500 K Street, N.W.
Washington, DC 20005 TIFF Bond Fund
Atlantic Asset Management Partners, L.L.C.
Seix Investment Advisors, Inc.
INDEPENDENT ACCOUNTANTS Smith Breeden Associates, Inc.
Price Waterhouse LLP
1177 Avenue of the Americas TIFF Short-Term Fund
New York, NY 10036 Fischer Francis Trees & Watts, Inc.
</TABLE>
<TABLE> <S> <C>
<ARTICLE> 6
<SERIES>
<NUMBER> 6
<NAME> MULTI-ASSET FUND
<MULTIPLIER> 1,000
<S> <C>
<PERIOD-TYPE> 12-MOS
<FISCAL-YEAR-END> DEC-31-1997
<PERIOD-END> DEC-31-1997
<INVESTMENTS-AT-COST> 413493
<INVESTMENTS-AT-VALUE> 408045
<RECEIVABLES> 9770
<ASSETS-OTHER> 7091
<OTHER-ITEMS-ASSETS> 0
<TOTAL-ASSETS> 424906
<PAYABLE-FOR-SECURITIES> 36411
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 6177
<TOTAL-LIABILITIES> 42588
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 389734
<SHARES-COMMON-STOCK> 32825
<SHARES-COMMON-PRIOR> 18073
<ACCUMULATED-NII-CURRENT> 0
<OVERDISTRIBUTION-NII> 4209
<ACCUMULATED-NET-GAINS> 2298
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> (5506)
<NET-ASSETS> 382317
<DIVIDEND-INCOME> 8535
<INTEREST-INCOME> 4869
<OTHER-INCOME> 0
<EXPENSES-NET> 2381
<NET-INVESTMENT-INCOME> 11023
<REALIZED-GAINS-CURRENT> 21369
<APPREC-INCREASE-CURRENT> (21284)
<NET-CHANGE-FROM-OPS> 11108
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> 13128
<DISTRIBUTIONS-OF-GAINS> 19430
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 16711
<NUMBER-OF-SHARES-REDEEMED> 4198
<SHARES-REINVESTED> 2239
<NET-CHANGE-IN-ASSETS> 164073
<ACCUMULATED-NII-PRIOR> 0
<ACCUMULATED-GAINS-PRIOR> 359
<OVERDISTRIB-NII-PRIOR> 2104
<OVERDIST-NET-GAINS-PRIOR> 0
<GROSS-ADVISORY-FEES> 1423
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> 2381
<AVERAGE-NET-ASSETS> 334606
<PER-SHARE-NAV-BEGIN> 12.08
<PER-SHARE-NII> .44
<PER-SHARE-GAIN-APPREC> .21
<PER-SHARE-DIVIDEND> 0.45
<PER-SHARE-DISTRIBUTIONS> 0.63
<RETURNS-OF-CAPITAL> 0.00
<PER-SHARE-NAV-END> 11.65
<EXPENSE-RATIO> 0.72
<AVG-DEBT-OUTSTANDING> 0
<AVG-DEBT-PER-SHARE> 0
</TABLE>
<TABLE> <S> <C>
<ARTICLE> 6
<SERIES>
<NUMBER> 2
<NAME> INTERNATIONAL EQUITY FUND
<MULTIPLIER> 1,000
<S> <C>
<PERIOD-TYPE> 12-MOS
<FISCAL-YEAR-END> DEC-31-1997
<PERIOD-END> DEC-31-1996
<INVESTMENTS-AT-COST> 224459
<INVESTMENTS-AT-VALUE> 246991
<RECEIVABLES> 1429
<ASSETS-OTHER> 2378
<OTHER-ITEMS-ASSETS> 0
<TOTAL-ASSETS> 250798
<PAYABLE-FOR-SECURITIES> 218
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 9508
<TOTAL-LIABILITIES> 9726
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 219471
<SHARES-COMMON-STOCK> 20471
<SHARES-COMMON-PRIOR> 18002
<ACCUMULATED-NII-CURRENT> 0
<OVERDISTRIBUTION-NII> 3114
<ACCUMULATED-NET-GAINS> 1927
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> 22788
<NET-ASSETS> 241072
<DIVIDEND-INCOME> 3937
<INTEREST-INCOME> 740
<OTHER-INCOME> 0
<EXPENSES-NET> 2931
<NET-INVESTMENT-INCOME> 1746
<REALIZED-GAINS-CURRENT> 5550
<APPREC-INCREASE-CURRENT> (6029)
<NET-CHANGE-FROM-OPS> 1267
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> 4784
<DISTRIBUTIONS-OF-GAINS> 5487
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 2546
<NUMBER-OF-SHARES-REDEEMED> 863
<SHARES-REINVESTED> 789
<NET-CHANGE-IN-ASSETS> 21614
<ACCUMULATED-NII-PRIOR> 0
<ACCUMULATED-GAINS-PRIOR> 1863
<OVERDISTRIB-NII-PRIOR> 76
<OVERDIST-NET-GAINS-PRIOR> 0
<GROSS-ADVISORY-FEES> 2186
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> 1746
<AVERAGE-NET-ASSETS> 241474
<PER-SHARE-NAV-BEGIN> 12.19
<PER-SHARE-NII> 0.10
<PER-SHARE-GAIN-APPREC> 0.02
<PER-SHARE-DIVIDEND> 0.53
<PER-SHARE-DISTRIBUTIONS> 0.00
<RETURNS-OF-CAPITAL> 0
<PER-SHARE-NAV-END> 11.78
<EXPENSE-RATIO> 1.21
<AVG-DEBT-OUTSTANDING> 0
<AVG-DEBT-PER-SHARE> 0
</TABLE>
<TABLE> <S> <C>
<ARTICLE> 6
<SERIES>
<NUMBER> 3
<NAME> EMERGING MARKETS FUND
<MULTIPLIER> 1,000
<S> <C>
<PERIOD-TYPE> 12-MOS
<FISCAL-YEAR-END> DEC-31-1997
<PERIOD-END> DEC-31-1997
<INVESTMENTS-AT-COST> 97751
<INVESTMENTS-AT-VALUE> 89409
<RECEIVABLES> 952
<ASSETS-OTHER> 430
<OTHER-ITEMS-ASSETS> 0
<TOTAL-ASSETS> 90791
<PAYABLE-FOR-SECURITIES> 3104
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 3851
<TOTAL-LIABILITIES> 6955
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 99972
<SHARES-COMMON-STOCK> 10357
<SHARES-COMMON-PRIOR> 10395
<ACCUMULATED-NII-CURRENT> 0
<OVERDISTRIBUTION-NII> 4802
<ACCUMULATED-NET-GAINS> (2899)
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> (8435)
<NET-ASSETS> 83836
<DIVIDEND-INCOME> 1914
<INTEREST-INCOME> 287
<OTHER-INCOME> 0
<EXPENSES-NET> 1378
<NET-INVESTMENT-INCOME> 823
<REALIZED-GAINS-CURRENT> 4699
<APPREC-INCREASE-CURRENT> (5120)
<NET-CHANGE-FROM-OPS> 402
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> 4889
<DISTRIBUTIONS-OF-GAINS> 0
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 1706
<NUMBER-OF-SHARES-REDEEMED> 2227
<SHARES-REINVESTED> 483
<NET-CHANGE-IN-ASSETS> (5900)
<ACCUMULATED-NII-PRIOR> 0
<ACCUMULATED-GAINS-PRIOR> (7598)
<OVERDISTRIB-NII-PRIOR> 735
<OVERDIST-NET-GAINS-PRIOR> 0
<GROSS-ADVISORY-FEES> 852
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> 1378
<AVERAGE-NET-ASSETS> 87554
<PER-SHARE-NAV-BEGIN> 8.63
<PER-SHARE-NII> 0.12
<PER-SHARE-GAIN-APPREC> (.15)
<PER-SHARE-DIVIDEND> 0.51
<PER-SHARE-DISTRIBUTIONS> 0
<RETURNS-OF-CAPITAL> 0
<PER-SHARE-NAV-END> 8.09
<EXPENSE-RATIO> 1.56
<AVG-DEBT-OUTSTANDING> 0
<AVG-DEBT-PER-SHARE> 0
</TABLE>
<TABLE> <S> <C>
<ARTICLE> 6
<SERIES>
<NUMBER> 1
<NAME> U.S. EQUITY FUND
<MULTIPLIER> 1,000
<S> <C>
<PERIOD-TYPE> 12-MOS
<FISCAL-YEAR-END> DEC-31-1997
<PERIOD-END> DEC-31-1997
<INVESTMENTS-AT-COST> 209953
<INVESTMENTS-AT-VALUE> 255468
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<TOTAL-ASSETS> 257143
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<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 203581
<SHARES-COMMON-STOCK> 16329
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<ACCUMULATED-NII-CURRENT> 0
<OVERDISTRIBUTION-NII> 5632
<ACCUMULATED-NET-GAINS> 11072
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> 46693
<NET-ASSETS> 255714
<DIVIDEND-INCOME> 2956
<INTEREST-INCOME> 1581
<OTHER-INCOME> 0
<EXPENSES-NET> 1574
<NET-INVESTMENT-INCOME> 2963
<REALIZED-GAINS-CURRENT> 36109
<APPREC-INCREASE-CURRENT> 23126
<NET-CHANGE-FROM-OPS> 62198
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> 7471
<DISTRIBUTIONS-OF-GAINS> 29925
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 2063
<NUMBER-OF-SHARES-REDEEMED> 361
<SHARES-REINVESTED> 1756
<NET-CHANGE-IN-ASSETS> 78917
<ACCUMULATED-NII-PRIOR> 0
<ACCUMULATED-GAINS-PRIOR> 4887
<OVERDISTRIB-NII-PRIOR> 1124
<OVERDIST-NET-GAINS-PRIOR> 0
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<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> 1574
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<PER-SHARE-NAV-BEGIN> 13.74
<PER-SHARE-NII> 0.25
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<PER-SHARE-DIVIDEND> 0.51
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<AVG-DEBT-OUTSTANDING> 0
<AVG-DEBT-PER-SHARE> 0
</TABLE>
<TABLE> <S> <C>
<ARTICLE> 6
<SERIES>
<NUMBER> 4
<NAME> BOND FUND
<MULTIPLIER> 1,000
<S> <C>
<PERIOD-TYPE> 12-MOS
<FISCAL-YEAR-END> DEC-31-1997
<PERIOD-END> DEC-31-1997
<INVESTMENTS-AT-COST> 186690
<INVESTMENTS-AT-VALUE> 189940
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<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 16273
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<SENIOR-EQUITY> 0
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<INTEREST-INCOME> 10648
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<EXPENSES-NET> 867
<NET-INVESTMENT-INCOME> 9880
<REALIZED-GAINS-CURRENT> 1505
<APPREC-INCREASE-CURRENT> 2617
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<AVG-DEBT-PER-SHARE> 0
</TABLE>
<TABLE> <S> <C>
<ARTICLE> 6
<SERIES>
<NUMBER> 5
<NAME> SHORT-TERM FUND
<MULTIPLIER> 1,000
<S> <C>
<PERIOD-TYPE> 12-MOS
<FISCAL-YEAR-END> DEC-31-1997
<PERIOD-END> DEC-31-1997
<INVESTMENTS-AT-COST> 40096
<INVESTMENTS-AT-VALUE> 40079
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<ASSETS-OTHER> 492
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<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 34809
<SHARES-COMMON-STOCK> 3460
<SHARES-COMMON-PRIOR> 6355
<ACCUMULATED-NII-CURRENT> 0
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<ACCUMULATED-NET-GAINS> 0
<OVERDISTRIBUTION-GAINS> 283
<ACCUM-APPREC-OR-DEPREC> (14)
<NET-ASSETS> 34431
<DIVIDEND-INCOME> 290
<INTEREST-INCOME> 2041
<OTHER-INCOME> 0
<EXPENSES-NET> 181
<NET-INVESTMENT-INCOME> 2150
<REALIZED-GAINS-CURRENT> (132)
<APPREC-INCREASE-CURRENT> 26
<NET-CHANGE-FROM-OPS> 2044
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> 2195
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<NET-CHANGE-IN-ASSETS> (29039)
<ACCUMULATED-NII-PRIOR> 0
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<OVERDISTRIB-NII-PRIOR> 36
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<GROSS-EXPENSE> 219
<AVERAGE-NET-ASSETS> 38894
<PER-SHARE-NAV-BEGIN> 9.99
<PER-SHARE-NII> .54
<PER-SHARE-GAIN-APPREC> ( .02)
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<AVG-DEBT-OUTSTANDING> 0
<AVG-DEBT-PER-SHARE> 0
</TABLE>
