ANNUAL REPORT
June 30, 1998 (unaudited)
TIFF
INVESTMENT
PROGRAM
Investment management
for foundations
August 28, 1998
Dear TIP Member:
We are pleased to present the Semi-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 TIP's 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 800-984-0084.
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
Statement of Assets and Liabilities 30
Statement of Operations 32
Statement of Changes in Net Assets 34
Financial Highlights 37
Notes to Financial Statements 43
* 25% Wilshire 5000, 25% MSCI All Country World ex US, 20% Merrill
LynchTreasury Bill Index + 5% per annum, 10% MSCI Global Resource-Related
Index, 15% Lehman Aggregate Bond Index, and 5% JP Morgan Non-US Government Bond
Index.
Policy Considerations
The Fund seeks to achieve its objective through two means: (1) diversification
across multiple asset classes and (2) active strategies. The strategies are
usefully subdivided into two categories: (1) the shifting of funds among the
various asset classes ("segments") in which the Fund invests and (2) security
selection within these segments. The segments are US stocks, foreign stocks,
absolute return, resource-related, US bonds, and foreign bonds. Importantly, the
active strategies are implemented not by the cooperative's board or staff but by
the Fund's outside managers. Some of these managers are specialists chosen for
their perceived ability to add value within a specific segment, while others are
generalists that seek to outperform their benchmarks through security selection
within segments and the occasional shifting of funds among segments.
Investment Performance for
the Periods Ended June 30, 1998
Average Annual
Total Return (Net of Fees)
Since
Trailing Inception
1 Year 3/31/95
TIFF Multi-Asset Fund 4.7 12.5
CPI +5% per annum 6.9 7.5
Constructed Index* 10.3 14.0
Performance Evaluation
Preface. The Multi-Asset Fund has achieved its primary objective of producing a
real or inflation-adjusted return exceeding 5% (see graph above). But the Fund
has not outperformed the Constructed Index that reflects its normal segment
weights. The fund's total return was +6.4% for the six month period ended June
30, 1998, the Constructed Index's return was +9.1%, producing a differential of
- -2.7%. The causes of this differential were (1) FAI-induced segment tilts
(+0.1%), manager-induced segement tilts (-0.7%), manager-induced country tilts
(+0.5%), and other manager strategies and tactics (-2.6%).
Caveats. Of necessity, these figures represent estimates only: external cash
flows and the Fund's use of commingled vehicles preclude the reporting of
precise attribution data. Moreover, the data presented analyze Fund results
through a prism quite different from the prism employed by managers to whom a
large fraction of the Fund's assets have been allocated. For example, Bee &
Associates as well as Harding, Loevner are "bottom-up" stockpickers: for these
two managers (and others employed by the Fund), segment and country tilts are a
by-product of individual stock selection, as distinct from conscious strategic
choices. Accordingly, judgments about the managers' competence individually or
in the aggregate - based solely on the methods used to construct the
accompanying table are suspect at best.
Comments. The market environment during 4Q 1997 and 1Q 1998 was unusually
inhospitable to the two aforementioned managers (Bee and Harding, Loevner).
Indeed, these two firms account for about 60% of the performance deficit
analyzed above, with Bee performing especially poorly during late 1997 and early
1998, only to rebound smartly during 2Q 1998. Two of the Fund's other managers
also encountered difficulties. Due to a paucity of issues meeting its valuation
criteria, Standard Pacific materially underweighted US stocks and lagged its
benchmark by 8.8% (5.7% vs. 14.5%). And the Fund's resource-related specialist
(Wellington) underperformed its benchmark also due largely to its decision to
underweight certain "megacap" stocks whose weights in its benchmark have soared
due to their strong relative performance (e.g., Royal Dutch Petroleum, Exxon).
Importantly, all of the firms mentioned above have managed money for TIFF for
longer than nine months, with generally favorable results, as have four of the
Fund's five absolute return-oriented managers (Lone Pine was funded just six
months ago).
TIFF Multi-Asset Fund / Schedule of InvestmentsJune 30, 1998 (unaudited)
Long-Term Investments - 99.0%
Common Stocks - 51.2%
U.S. Common Stocks - 20.5%
Aerospace - 0.7%
30,000 AlliedSignal, Inc. $1,331,250
25,000 Boeing Co. 1,114,063
2,445,313
Agricultural Biotech - 0.2%
11,000 Monsanto Co. 614,625
Airlines - 0.4%
22,606 Continental Airlines - Class B * 1,376,140
Building Production - 0.1%
4,325 York International Corp. 188,408
Chemicals - 0.3%
18,910 Carbide/Graphite Group, Inc. (The) * 525,934
25,000 Wellman, Inc. 567,188
1,093,122
Circuits - 0.3%
9,602 Level One Communications, Inc. * 225,646
8,651 Micrel, Inc. * 281,158
12,975 Sanmina Corp. * 562,791
1,069,595
Communications - 0.0% +++
3,460 Cellular Communications International, Inc. 172,567
Computer - 0.2%
19,896 Smart Modular Technologies, Inc. * 290,979
20,367 STB Systems, Inc. * 254,588
6,574 SunGard Data Systems, Inc. * 252,277
797,844
Computer Sofware - 0.4%
15,000 Aspen Technologies, Inc. * 757,500
25,212 DataWorks Corp. * 334,059
2,271 Orcad, Inc. * 22,142
11,784 Structural Dynamics Research Corp. * 272,505
1,386,206
Construction - 0.2%
20,000 J. Ray McDermott, SA * 830,000
Cosmetics - 0.5%
20,000 Colgate-Palmolive Co. 1,760,000
Data Processing - 0.1%
33,280 ForSoft Ltd. * 511,680
Direct Marketing - 0.1%
23,220 TeleSpectrum Worldwide, Inc. * 203,175
Diversified Minerals - 0.1%
30,000 Cyprus Amax Minerals Co. 397,500
Electronics - 0.7%
62,350 Catalina Lighting, Inc. * 237,709
7,785 DSP Group, Inc. * 153,754
34,770 Maxim Intergrated Products, Inc. * 1,101,774
29,703 SCI Systems, Inc. * 1,117,575
3,028 SDL, Inc. * 72,294
2,683,106
Financial - 1.5%
85,646 Allied Capital Corp. $2,098,327
40,000 Federal National Mortgage Association 2,430,000
30,740 Heller Financial, Inc. * 922,200
5,450,527
Foods - 0.3%
12,000 Wrigley (WM) Jr. Co. 1,176,000
Forestry - 0.3%
23,000 Weyerhauser Co. 1,062,313
Hotels/Restaruants - 0.2%
21,386 American General Hospitality Corp. 454,453
10,866 Brinker International, Inc. * 209,170
3,460 Friendly Ice Cream Corp. - Class A * 58,388
8,802 Ruby Tuesday, Inc. 136,431
858,442
Identification System Development - 0.1%
23,730 Vivid Technologies, Inc. * 272,895
Leisure - 0.3%
15,064 Coastcast Corp. * 271,152
21,954 Galileo International, Inc. 989,302
1,260,454
Machines - 1.1%
20,000 Deere & Co. 1,057,500
43,000 Dover Corp. 1,472,750
40,000 Thermo Electron Corp. * 1,367,500
13,691 Tokheim Corp. * 280,666
4,178,416
Manufacturing - 1.0%
70,000 KLA-Tencor Corp. * 1,938,125
8,650 Nike, Inc. - Class B 421,147
18,375 Russell Corp. 554,696
15,905 Warnaco Group, Inc. - Class A 674,968
3,588,936
Medical Supplies - 1.6%
30,000 Baxter International, Inc. 1,614,375
156,000 Physio-Control International Corp. * 4,104,750
5,719,125
Metals - 1.3%
20,700 Aluminum Company of America (Alcoa) 1,364,906
56,000 EASCO, Inc. 563,500
9,400 Phelps Dodge Corp. 537,563
80,000 Santa Fe Energy Resources, Inc. * 860,000
6,747 Solectron Corp. * 283,796
25,000 Stillwater Mining Co. * 678,125
13,500 Titanium Metals Corp. 297,844
4,585,734
Mining - 0.4%
60,200 Freeport-McMoRan Copper & Gold, Inc. -
Class A 857,850
30,000 Newmont Mining Corp. 708,750
1,566,600
Networking - 0.1%
47,339 Hypercom Corp. * 473,390
Oil/Gas Exploration - 1.6%
20,000 Tom Brown, Inc. * 376,250
22,434 Burlington Resources, Inc. 966,064
11,000 Cooper Cameron Corp. * $561,000
12,200 Houston Exploration Company * 279,838
37,871 Newfield Exploration Company * 942,041
23,173 Ocean Energy, Inc. * 453,322
40,000 Pogo Producing Co. 1,005,000
17,500 USX-Marathon Group, Inc. 600,469
17,100 Vastar Resources, Inc. 747,056
5,931,040
Oil/Gas Services - 1.7%
20,000 Anadarko Petroleum Corp. 1,343,750
30,000 Baker Hughes, Inc. 1,036,875
24,000 Exxon Corp. 1,711,500
27,000 Schlumberger, Ltd. 1,844,437
1 Texaco, Inc. 60
15,000 Tuboscope Vetco International Corp. * 296,250
6,232,872
Paper & Related Products - 0.3%
32,000 Willamette Industries, Inc. 1,024,000
Pharmaceutical - 0.6%
20,166 Jones Medical Industries, Inc. 667,998
15,000 Pfizer, Inc. 1,630,313
2,298,311
Power Conversion/Supply Equipment - 0.3%
39,172 American Power Conversion Corp. *
1,175,160
Printing - 0.3%
16,609 Consolidated Graphics, Inc. * 979,931
Railroad - 0.3%
45,000 Wisconsin Central Transportation Corp. * 984,375
Rental Auto/Equipment - 0.2%
24,236 Avis Rent A Car, Inc. * 599,841
Retail - 0.8%
17,276 Barnes & Noble, Inc. * 646,770
12,719 Kenneth Cole Productions, Inc. - Series A * 329,104
14,574 Friedman's, Inc. * 241,382
13,693 Michaels Stores, Inc. * 483,105
28,802 Office Depot, Inc. * 909,063
17,663 OfficeMax, Inc. * 291,440
2,900,864
Schools - 0.1%
20,256 Career Education Corp. * 496,272
Services - 1.1%
11,908 Alliance Communications Corp.- Class B 205,412
83,195 Computer Learning Centers, Inc. * 2,069,476
11,070 Data Transmission Network * 442,800
14,638 PMT Services, Inc. * 372,354
42,974 Renaissance Worldwide, Inc. * 934,685
4,024,727
Telecommunication - 0.4%
27,191 ADC Telecommunications, Inc. * 993,320
27,031 Allegiance Telecom Inc. * 405,465
1,398,785
Textiles - 0.3%
63,073 Authentic Fitness Corp. 997,342
Tobacco - 0.0% +++
12,586 Dimon, Inc. $141,593
Total U.S. Common Stocks
(Cost $69,316,642) 74,907,226
Foreign Common Stocks - 30.7%
Argentina - 0.4%
48,960 Quilmes Industrial SA 430,848
30,000 YPF-Sociedad Anonima ADR 901,875
1,332,723
Australia - 0.0% +++
70,896 Acacia Resources Ltd. 75,701
Bermuda - 0.2%
17,000 PartnerRe Ltd. 867,000
Brazil - 0.2%
34,500 Companhia Vale Do Rio Doce - ADR * 700,968
7,500 Compania Brasileira de Distribuicao
Grupo Pao de Acurcar - ADR 169,688
870,656
Canada - 2.2%
40,000 Alberta Energy Company Ltd. 938,428
70,000 Barrick Gold Corp. 1,343,125
50,000 Canadian Occidental Petroleum Ltd. 1,075,000
2,163 Eaton Co. Ltd. * 22,076
26,400 Euro-Nevada Mining Corp. 359,948
30,625 Greenstone Resources Ltd. * 118,672
70,000 Memotec Communications, Inc. * 58,072
50,000 PanCanadian Petroleum Ltd. 744,620
60,000 Placer Dome, Inc. 705,000
375,000 Queenstake Resources Ltd. * (e) 76,546
71,852 Rio Alto Exploration Ltd. * 794,439
22,000 Royal Bank of Canada 1,336,735
10,000 Talisman Energy, Inc. * 291,250
7,863,911
Cayman Islands - 0.0% +++
15,600 Apex Silver Mines Ltd. * 151,125
Demark - 0.2%
14,056 ESG Re Ltd. 303,961
7,400 Danisco AS 497,425
801,386
France - 3.2%
6,315 Canal Plus 1,180,081
2,800 Compagnie de Saint-Gobain 519,067
16,315 Eiffage 1,411,071
9,500 Equipements et Composants pour
l'Industrie Automobile 2,639,325
31,500 Financiere et Industrielle Gaz et Eaux * 1,726,327
15,380 Montupet * 610,418
20,106 Renault SA 1,143,452
5,347 Strafor-Facom SA 522,586
1,679 Suez Lyonnaise des Eaux 276,270
25,000 Total Compagnie Francaise des Petroles
SA - ADR 1,634,375
8 Valeo SA 818
11,663,790
Germany - 2.2%
27,000 Bayer AG 1,397,351
255 Bien-Haus AG 87,605
23,000 Deutsche Bank AG $1,944,811
6,153 Mannesmann AG * 632,449
70,000 Rinol AG 3,044,827
7,000 SGL Carbon AG 815,316
7,922,359
Ghana - 0.2%
101,695 Ashanti Goldfields Co. Ltd. - GDR 826,272
Greece - 0.2%
26,812 Hellenic Telecommunications
Organization SA 687,764
Hong Kong - 1.4%
286,000 Four Seas Mercantile Holdings Ltd. 114,428
4,839,704 Hung Hing Printing Group 1,920,741
250,000 Hutchison Whampoa Ltd. 1,319,678
200,000 Johnson Electric Holdings Ltd. * 740,827
98,000 Moulin International Hldgs, Ltd. 9,739
220,000 Swire Pacific Ltd. - Class A 830,526
831,000 Yanzhou Coal Minig Co. Ltd. - Class H 158,733
5,094,672
Indonesia - 0.0% +++
3,780,000 PT Davomas Abadi 129,452
Ireland - 0.4%
19,000 CBT Group plc - ADR * 1,016,500
10,165 Esat Telecom Group plc - ADR * 386,270
1,402,770
Israel - 0.7%
53,387 MEMCO Software Ltd. * 1,014,353
282,838 Bank Hapoalim Ltd. 855,940
14,761 NICE-Systems Ltd. - ADR * 553,538
2,423,831
Italy - 0.2%
31,138 Banca Popolare di Bergamo Credito
Varesino 639,338
284,279 Seat Spa Co. * 191,023
830,361
Japan - 0.4%
8,500 Hirose Electronics Co. Ltd. 414,918
150,000 Mitsubishi Corp. 930,132
46,325 Yakult Honsha Co. Ltd. * 232,811
1,577,861
Korea - 0.0% +++
8,300 Korea Zinc Co. 64,825
Malaysia - 0.0% +++
68,537 Ramatex Berhad 52,943
Mexico - 0.8%
31,557 Corporacion GEO SA de CV - Series B * 170,730
100,000 Desc Sociedad de Fomento Industrial
SA de CV 512,078
529,980 Grupo Financiero Banamex
Accival SA de CV * 1,020,667
325,000 Grupo Financiero Bital SA de CV -
Class B * 150,507
33,139 Grupo Iusacell SA - ADR Series L * 455,661
125,000 Kimberly-Clark de Mexico SA de CV 442,503
2,752,146
Netherlands - 2.1%
5,190 Ahrend NV 169,444
1,416 Athlon Groep 240,131
53,000 Royal Dutch Petroleum Co. 2,905,063
46,040 Van Melle NV $3,316,383
7,500 Wolters Kluwer NV 1,029,600
7,660,621
Norway - 1.5%
92,615 Choice Hotels Scandinavia ASA * 277,851
75,550 Kverneland Gruppen ASA 1,970,912
30,000 Norsk Hydro AS - ADR 1,323,750
580,000 Norsk Lotteridrift ASA * 1,815,692
5,388,205
Phillipines - 0.1%
2,817,000 Cosmos Bottling Corp. 319,034
Portugal - 0.9%
68,700 Investec Consultadoria International * 3,162,611
Singapore - 0.6%
8,002 Flextronics International, Ltd. * 348,087
2,850,000 Electronic Resources Ltd. 1,941,072
2,289,159
South Africa - 0.4%
25,000 De Beers Consolidated Mines Ltd. * 437,500
30,571 Liberty Life Association of Africa 599,492
140,000 LibLife Strategic Investments Ltd. 414,419
1,451,411
Spain - 0.4%
8,959 Baron de Ley SA * 297,911
20,000 Repsol SA - ADR 1,100,000
1,397,911
Sweden - 3.0%
146,824 BTL AB - Class B 789,515
175,000 Investment AB Bure 2,785,785
32,000 Investor AB - Class B 1,867,135
155,450 IRO AB 2,045,908
226,675 Nobel Biocare AB 3,381,089
10,869,432
Switzerland - 3.7%
5,700 ABB AG Namen 1,729,209
170 Gurit-Heberlein AG - Bearer 614,390
12,000 Nestle SA - ADR 1,284,008
4,381 Publicitas Holdings SA - Class R * 1,357,957
13,150 Selecta Group (The) 2,809,866
4,200 SGS Societe Generale de Surveillance
Holding SA - Class R 1,445,888
2,000 Stratec Holding AG 2,809,470
1,938 Union Bank of Switzerland * 721,026
1,000 Zurich Versicherungs - Reg Shrs 638,396
13,410,210
Thailand - 0.3%
200,000 Bangkok Bank Public Co. Ltd. 246,446
277,210 Bangkok Rubber Public Co. Ltd. * 65,690
25,876 K.R. Precision Public Co., Ltd. * 17,169
19,400 Sunwood Industries Public Co. Ltd. 14,021
113,541 Thai Union Frozen Products Co. Ltd. 349,771
59,100 Siam Cement Co., Ltd. * 285,697
978,794
Turkey - 0.0% +++
633,930 Carsi Buyuk Magazacilik 74,576
United Kingdom - 4.8%
200,100 Billiton plc * $397,611
15,000 British Steel plc - ADR 341,250
125,000 City Centre Restaurants plc 309,957
309,145 Freepages Group plc * 190,998
313,000 JBA Holdings plc 3,240,414
1,000,000 McBride plc 2,897,103
80,000 Pearson plc 1,466,752
625,024 Premier Consolidated Oil plc 445,767
50,000 Railtrack Group plc 1,239,827
200,000 Rentokil Initial plc 1,439,368
85,000 Rio Tinto plc 958,048
155,769 Smith (W.H.) Group plc * 1,379,848
184,445 Smith (W.H.) Group plc - Class B 164,773
887,500 Victrex plc 3,060,222
17,531,938
Total Foreign Common Stocks
(Cost $110,327,179) 111,925,450
Total Common Stocks
(Cost $179,643,821) 186,832,676
Principal
Amount Fixed Income Securities - 47.8%
Asset-Backed Securities - 3.0%
$243,518 Amerus Home Equity Loan Trust,
Ser. 1997-1, Class A1, 5.741% due 10/15/03 243,518
480,000 AT&T Universal Card Trust FRN,
Ser. 1996-3, Class A, 5.788% due 9/17/03 480,240
426,346 Chase Mtg. Finance Corp., Ser. 1993-G,
Class A5, 5.850% due 5/25/24 424,931
480,000 Citibank Credit Card Master Trust FRN,
Ser. 1996-5, Class A, 5.793% due 9/15/05 480,053
345,430 Countrywide Funding FRN, Ser. 1997-2,
Class A, 5.928% due 5/25/27 346,346
416,189 Countrywide Home Equity Loan FRN,
Ser. 1997-C, Class A, 5.836% due 9/15/22 416,567
480,232 Countrywide Home Equity Trust FRN,
Ser. 1998-A, Class A, 5.846% due 3/15/24 480,232
343,248 Delta Funding Home Equity Loan Trust
Ser. 1998-1, Class A1F, 5.766% due 10/25/17 343,248
470,000 Discover Card Master Trust FRN,
Ser. 1996-1, Class A, 5.826% due 7/16/03 471,043
445,000 Discover Card Master Trust I, Ser. 1997-1,
Class A, 5.746% due 2/16/05 445,116
225,000 Discover Card Trust, Ser. 1997-2, Class A,
6.792% due 4/16/10 229,214
302,059 EQCC Home Equity Loan Trust, Ser. 1997-1,
Class A1, 6.310% due 5/15/05 302,733
53,269 Equicredit Funding Trust, Ser. 1996-A,
Class A1, 6.450% due 9/15/10 53,351
510,000 First USA Cr. Card Trust FRN, Ser. 1996-2,
Class A, 5.836% due 2/10/06 511,770
470,000 First USA Credit Card Trust FRN,
Ser. 1995-5, Class A, 5.858% due 4/15/03 468,444
187,555 Ford Credit Auto Owner Trust, Ser. 1996-A,
Class A3, 6.500% due 11/15/99 187,985
475,000 Household Affinity Credit Card Trust FRN,
Ser. 1995-1, Class A, 5.806% due 2/15/02 475,622
294,017 Household Consumer Loan Trust FRN,
Ser. 1997-2, Class A1, 5.840% due 11/15/07 294,017
122,110 IMC Home Equity Loan Trust FRN,
Ser. 1997-5, Class A2, 5.746% due 12/20/11 122,068
460,000 MBNA Master Credit Card Trust FRN,
Ser. 1997-N, Class A, 5.761% due 11/15/02 459,936
480,000 MBNAM FRN, Ser. 1996-H, Class A,
5.791% due 1/15/04 480,312
$376,583 Merrill Lynch Home Equity Loan FRN,
Ser. 1997-1, Class A, 5.836% due 9/25/27 $376,580
480,000 People's Bank Credit Card Trust FRN,
Ser. 1997-1, Class A, 5.776% due 10/15/04 480,629
431,812 Premier Auto Trust, Ser. 1996-3, Class A3,
6.500% due 3/6/00 433,142
93,988 Premier Auto Trust, Ser. 1997-1, Class A2,
5.900% due 4/6/00 94,054
470,000 Providian Master Trust FRN, Ser. 1997-3,
Class A, 5.766% due 12/15/05 470,385
480,000 Signet Credit Card Master Trust, Ser.
1993-1,
Class A, 5.200% due 2/15/02 479,443
333,468 Southern Pacific Secured Assets Corp.
FRN, 1997-3 A1, 5.870% due 9/25/27 334,025
282,527 Structured Asset Securities Corp. FRN,
Ser. 1998-C2A, Class A, 5.826% due 12/25/00 282,527
285,268 UCFC Home Equity Loan FRN, Ser. 1997-C,
Class A8, 5.888% due 9/15/27 285,587
Total Asset-Backed Securities
(Cost $10,946,923) 10,953,118
Corporate Obligations - 8.2%
260,000 360 Communications Co., 6.650% due 1/15/08 263,539
210,000 Abitibi-Consolidated, Inc. 7.500% due
4/1/28 218,038
182,486 American Airlines, Inc. 9.710% due
1/2/07 200,775
425,000 Amerus Life Holdings, 6.950% due 6/15/05 424,515
290,000 Associates Corp NA., 6.000% due 4/15/03 289,626
570,000 AT&T Corp. FRN, 5.190% due 4/26/99 568,210
485,000 BankAmerica Corp. FRN, Ser. Mini,
5.708% due 3/5/01 484,932
300,000 Bay Apartment Communities, 6.250% due
1/15/03 297,296
475,000 Bear Stearns Co. Inc. FRN, 5.802%
due 4/17/01 475,000
275,000 Beneficial Corp. FRN, 5.830% due 1/9/01 275,000
305,000 Black & Decker (144A), 7.050% due
7/1/28 (a) 304,985
485,000 Chrysler Financial Corp. FRN, 5.626%
due 5/11/00 484,733
460,000 Consumers Energy (144A), 6.500%
due 6/15/18 (a) 458,224
600,000 Continental Airlines, 6.541% due 9/15/09 608,568
100,000 Corp. Andina de Fomento (144A), 6.625%
10/14/98 (Latin America) (a) 100,129
285,000 Corp. Andina de Formento, 7.100%
due 2/1/03 (Latin America) 292,325
200,000 Countrywide Funding FRN, 6.011%
due 8/28/00 200,500
450,000 Cummins Engine Co., Inc., 5.650%
due 3/1/2098 354,495
320,000 Enron Oil & Gas, 6.650% due 4/1/28
320,344 400,000 Enterprise Corp. (144A), 6.950%
due 3/1/04 (a) 407,644
305,000 Federal Express, 7.600% due 7/1/2097
331,849 475,000 First Bank South Dakota N.A. FRN Bank Note,
5.722% due 12/20/00 474,900
455,000 First Chicago NBD Inst-B. (144A), 7.750%
due 12/1/26 (a) 493,223
200,000 First Maryland Bancorp, 7.200% due
7/1/07 211,334
455,000 Fleet Financial Group 6.375% due 5/15/08 454,706
475,000 Ford Motor Credit FRN, 5.908% due 3/5/01
476,064 255,000 Fortune Brands, 6.625% due 7/15/28 254,818
480,000 General Motors Acceptance Corp. FRN,
5.699% due 2/3/00 479,809
460,000 Goldman Sachs Group (144A), MTN,
7.200% due 11/1/06 (a) 487,958
385,000 Gruma SA de CV, 7.625%
due 10/15/07 (Mexico) 387,088
545,000 GTE Corp., 6.840% due 4/15/18 549,145
1,545,854 Humpuss Funding Corp. (144A), 7.720%
due 12/15/09 (Indonesia) (a) 1,289,593
345,000 IBM Corp., 7.125% due 12/1/96 366,689
1,002,782 Jasmine Submarine Telecom (144A),
8.483% due 5/30/11 (Thailand) (a) 977,050
115,000 Jet Equipment Trust (144A), 9.710%
due 8/15/13 (a) 143,610
$430,000 Kern River Funding Corp. (144A) Ser. B,
6.720% due 9/30/01 (a) $437,221
440,000 Land 'O Lakes Cap Trust I (144A), 7.450%
due 3/15/28 (a) 446,833
405,000 Lehman Brothers Holdings, Inc., 6.000%
due 2/26/01 403,534
410,000 Long Island Savings Bank, 6.200%
due 4/2/01 410,560
335,000 Meditrust, 7.820% due 9/10/26 348,031
425,000 Merrill Lynch & Co. FRN, 6.091%
due 2/15/00 427,716
1,035,000 Mutual Life Insurance Co. - NY (144A),
0.000% due 8/15/24 (a) (d) 1,405,059
255,000 National Australia Bank, 6.400%
due 12/10/07 (Australia) 257,129
305,000 National Oilwell, Inc. (144A), 6.875%
due 7/1/05 (a) 306,241
380,000 New Plan Realty Trust MTN, 7.970%
due 8/14/26 428,217
310,000 News America Inc., (144A), 7.300%
due 4/30/28 (a) 318,909
270,000 Norsk Hydro A/S, 6.700%
due 1/15/18 (Norway) 272,341
370,000 Northwest Airlines Corp., 7.068% due 7/2/17
395,504 375,000 Owens Corning, 7.700% due 5/1/08 386,595
290,000 Petroleum Geo-Services ASA, 6.625%
due 3/30/08 (Norway) 294,007
165,000 Phillips Petroleum Co., 7.125% due 3/15/28
169,135 480,000 PNC Bank NA FRN, 5.636% due 5/26/00 479,770
405,000 PNC Funding Corp. MTN, 6.500% due 5/1/08 412,293
340,000 Post Apartment Homes, 6.850% due 3/16/05 351,232
140,000 R&B Falcon Corp. (144A), 6.500%
due 4/15/03 (a) 140,078
640,000 Ras Laffan-Lincs (144A), 7.850%
due 3/18/14 (a) 717,649
405,000 Republic of Colombia, 7.625% due 2/15/07
(Colombia) 363,365
79,594 Resolution Trust Corp. FRN, Ser. 1992-C3,
Class A3, 6.838% due 8/25/23 79,644
285,000 Rite Aid Corp., 6.700% due 12/15/01 290,314
495,000 Salomon, Inc., 6.750% due 2/15/03 507,039
390,000 SE Banken (144A), 6.500% due 12/29/49
(Sweden) (a) 390,780
208,968 Selkirk Cogeneration Funding Corp., Ser. A,
8.650% due 12/26/07 232,126
280,000 Shopko Stores, 6.500% due 8/15/03 277,481
400,000 Sithe/ Independence Fndg, Ser. A, 9.000%
due 12/30/13 477,432
620,000 SocGen Real Estate LLC (144A), 7.640%
due 12/29/49 (a) 615,850
145,000 SuperValu, Inc., 7.800% due 11/15/02 153,264
280,000 Taubman Realty Group, 7.500% due 6/15/02 292,134
415,000 Telefonica de Argentina, 9.125% due 5/7/08
(Argentina) 404,069
355,000 U.S. Bankcorp FRN, 5.802% due 7/17/02
355,273 205,000 U.S. West Communications MTN, 5.340%
due 3/25/99 204,528
290,000 Union Carbide Corp., 6.250% due 6/15/03 289,014
275,000 Union Oil Co. of California, (144A) 7.200%
due 5/15/05 (a) 290,352
350,000 United Dominion Realty Trust, 7.950%
due 7/12/06 381,654
395,000 Unova, Inc., 6.875% due 3/15/05 399,894
400,000 Western Resources, Inc., 6.875% due 8/1/04 412,214
421,078 YPF Sociedad Anonima, 7.500% due 10/26/02
(Argentina) 427,618
Total Corporate Obligations
(Cost $29,798,077) 30,058,813
Mortgage-Backed Securities - 5.5%
388,666 Amresco Residential Mortgage Sec. Loan Trust,
Ser. 1996-1, Class A2, 6.075% due 2/25/21 387,581
Federal Home Loan Mortgage Corp
151,078 Ser. 1541, Class D, 5.500% due 1/15/14 150,771
203,834 Ser. 1542, Class E, 5.650% due 1/15/15 203,458
$74,432 Ser. 1734, Class C, 6.000% due 2/15/03 $74,280
Federal National Mortgage Association
1,860,000 TBA, 6.000% due 8/18/13 1,839,656
4,190,000 TBA, 6.500% due 7/14/28 4,171,669
1,050,000TBA, 6.500% due 8/13/28 1,045,406
2,740,000 TBA, 6.500% due 8/18/28 2,758,838
1,690,000TBA, 7.000% due 8/18/15 1,720,631
3,615,000 TBA, 7.500% due 8/13/28 3,707,634
500,000TBA, 7.500% due 8/13/28 512,266
350,000 TBA, Ser. 1944, Class GB, 7.500%
due 4/17/24 358,631
152,641 Ser. 1993-167, Class CA, 5.500%
due 4/25/14 152,116
385,000 Ser. 1997-15, Class B, 7.500%
due 7/18/25 394,514
2,435,000 TBA, 7.500% due 8/19/28 2,502,723
Total Mortgage-Backed Securities
(Cost $19,973,975) 19,980,174
U.S. Treasury Securities - 4.7%
U.S. Treasury Bond
518,000 6.125% due 11/15/27 555,069
2,595,000 6.125% due 11/15/27 2,780,703
U.S. Treasury Note 3,265,000
5.625% due 11/30/98 3,269,081
720,000 6.125% due 8/15/07 749,475
430,000 5.375% due 2/15/01 428,522
460,000 5.750% due 4/30/03 464,456
1,830,000 5.625% due
5/15/0 1,855,163
145,000 8.000% due 5/15/01 154,380
2,380,000 6.250% due 2/15/03 2,449,168
2,940,0005.000% due 1/31/99 2,920,251
50,000 6.875% due 5/15/06 54,156
920,000 6.375% due 9/30/01 941,850
515,000 4.750% due 8/31/98 ++ 514,517
Total U.S. Treasury Securities
(Cost $17,010,017) 17,136,791
Total Fixed Income Securities
(Cost $77,728,992) 78,728,896
Number
of Shares Preferred Stocks - 0.5%
15,300 Alabama Power Co. 7.000% due 3/31/48 386,841
13,520 Duke Realty Investments, Inc. 7.990%
due 10/1/12 719,940
1,750 Connecticut Light & Power Ser.1993, 5.300%
due 10/01/03 81,703
719 Hyperion Telecom, Inc. Ser. B, 12.875%
due 10/15/07 776,553
Total Preferred Stocks (Cost $1,937,100) 1,965,037
Warrants - 0.0% +++
314,083 Electronic Resources Ltd.
expiring 7/17/07
(Singapore) 85,566
Total Warrants (Cost $33,048) 85,566
Rights - 0.0% +++ 187,500
Queenstake Resources Ltd. Expiring 9/11/98
(Canada) (Cost $0) * 0
Investment Companies - 3.1%
105,993 GMO Currency Hedged International
Bond Fund ** 1,160,628
787,546 GMO International Bond Fund ** 8,229,858
100,000 Atlantis Japan Growth Fund * 366,230
73,343 Beacon Capital Partners Inc. * 1,466,860
Total Investment Companies
(Cost $11,854,720) 11,223,576
Limited Partnerships - 22.8%
40,000 Lone Redwood L.P. * (b) (c) $4,175,600
2,078,619 The Value Realization Fund L.P.
(Canyon Partners) * (b) (c) 29,496,728
14,488 Daystar Partners L.P. * (b) (c) 16,329,738
10,022 Euro-Partners Arbitrage Fund * (b) (c) 21,199,641
6,235 Farallon Capital Partners L.P. *
(a) (b) (c) 10,330,736
6,489 Pomboy Capital L.P. * (b) (c) 2,007,798
Total Limited Partnerships
(Cost $77,160,790) 83,540,241
Total Long-Term Investments
(Cost $168,714,650) 174,943,316
Short-Term Investments - 6.3%
Principal
Amount U.S. Treasury - 0.2%
$765,000 U.S. Treasury Bill, 4.964% due 10/15/98 # ++
(Cost $753,714) 753,714
Repurchase Agreement - 6.1%
22,446,227 Repurchase agreement, 5.200%,
dated 6/30/98, due 7/1/98
with Investors Bank & Trust Company - proceeds
$22,449,469
(Collateralized by $11,843,132 FNR 6.500%
due 7/1/12 -
market value $11,742,301;
$1,512,269 FHLMC 7.500% due 6/1/22 -
market value $1,562,630; $10,000,000
Northern Trust Cap II 6.246% due 4/15/27 -
market value $10,263,730)
(Cost $22,446,227) 22,446,227
Total Short-Term Investments
(Cost $23,199,920) 23,199,941
Total Investments - 105.3%
(Cost $371,558,391) 384,975,933
Liabilities in Excess
of Other Assets - (5.3%) (19,354,039)
Net Assets - 100% $365,621,894
Number
of Shares Short-Portfolio - (1.1%)
Common Stocks - (1.1%)
U.S. Common Stocks - (0.7%)
Electronics - (0.1%)
1,730 Platinum Software 40,220
6,645 Bemis Co., Inc. 271,614
311,834
Leisure - (0.0%) +++
2,000 K-tel International, Inc. * 28,875
Office Furnishings - (0.1%)
23,000 Miller Herman, Inc. 559,188
Oil/Gas Exploration - (0.4%)
13,800 Diamond Offshore Driling, Inc. 552,000
26,100 Global Marine, Inc. * 487,744
15,495 Varco International, Inc. * 306,995
1,346,739
Paper & Related Products - (0.1%)
7,962 Willamette Industries, Inc. 254,784
Total U.S. Common Stocks
(Proceeds $2,692,006) 2,501,420
Foreign Common Stocks - (0.4%)
France - (0.1%)
2,835 Friede Goldman International, Inc. * $81,861
3,500 Hermes International 274,930
356,791
Great Britain - (0.1%)
24,900 British Airways plc 268,178
Spain - (0.1%)
2,000 Acerinox SA * 266,545
Sweden - (0.1%)
5,601 Lindex AB 203,947
31,000 Stora Kopparbergs Bergslags - Class A 487,654
691,601
Total Foreign Common Stocks
(Proceeds $1,632,422) 1,583,115
Total Short Portfolio
(Proceeds $4,324,428) $4,084,535
+ See Note 2 to the Financial Statements.
++ Assets currently held with a broker as initial margin for
financial futures contract. See Appendix C to Notes to th
Financial Statements.
+++ Rounds to less than 0.1%.
# Interest rate represents the yield to maturity at the time
of purchase.
* Non-income producing security.
** Deemed to be an investment in an affiliate.
ADR American Depositary Receipt
FHLMC Federal Home Loan Mortgage Corporation
FNMA Federal National Mortgage Corporation
FNR Fannie Mae Remic
FRN Floating Rate Note. Rate shown is the coupon
rate at June 30, 1998.
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 June 30, 1998, the aggregate value of
the securities is $20,062,124 or 5.49% 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.
(d) Security is a step-up bond which will pay 11.25% until
maturity starting 8/15/99.
(e) With additional recoverable rights attached maturing on
9/11/98 with no market value.
See accompanying Notes to Financial Statements.
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-US
markets, thus permitting Members 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 well diversified across countries and currencies, an
unsurprising fact in light of the diversity of investment approaches that the
Fund employs. In an effort to potentially reduce losses during periods when the
dollar rises against foreign currencies, the Fund's managers are permitted to
hedge up to 50% of their portfolios' non-dollar exposure. They have utilized
this flexibility effectively since the Fund commenced operations and continue to
do some hedging, but to a lesser extent than they did during 1996 and 1997.
Investment Performance for
the Period Ended June 30, 1998
Average Annual
Total Return (Net of Fees)
Since
Trailing Inception
1 Year 5/31/94
TIFF International Equity Fund -0.1 9.0
MSCI All Country World Free ex US 0.9 7.3
Performance Evaluation
Foreign stocks moved sideways (on average) in local currency terms during 2Q
1998, but adverse currency changes caused by the rising dollar caused the Fund's
total return to slip into negative territory (-1.8%). The Fund has materially
outperformed its benchmark (the MSCI All Country World ex US Index) since
inception (42.2% net of fees vs. 33.3%). Happily, all but one of the Fund's
managers have outperformed their benchmarks since being retained by TIFF,
despite some backsliding that caused the overall Fund to lag its benchmark by
0.3% during 2Q 1998. We have bemoaned the fact that the "megacap" stocks which
necessarily dominate capitalization-weighted indices such as the Fund's
benchmark have outperformed the generally smaller capitalization issues held by
the Fund's managers. This trend continued during 2Q 1998, and some of the
managers were hurt by it, although the manager hurt most by the megacap
phenomenon in early 1998 (Bee) came roaring back during the second quarter
(+7.2%). The Fund continues to underweight megacap stocks.
TIFF International Equity Fund / Schedule of Investments
June 30, 1998 (unaudited)
Long-Term Investments - 94.2%
Common Stocks - 88.8%
Europe - 58.1%
Belgium - 0.4%
4,100 Electrabel SA $1,163,019
Denmark - 0.5%
6,000 Bang & Olufsen Holding AS - Series B 432,126
2,500 Coloplast AS - Class B 245,526
2,340 De Sammensluttede Vognmano AS 248,538
3,750 Falck AS 231,885
4,548 Spar Nord Holding AS 240,204
1,398,279
Finland - 2.7%
9,892 KCI Konecranes International 496,152
3,000 Metra OY - "B" Shares 97,395
50,000 Metsa-Serla OY - Class B 483,330
8,800 Nokia OY - Class A 650,033
6,333 Nokian Renkaat OY 277,100
21,800 Outokumpo OY 278,325
95,000 OY Hartwall AB * 3,049,537
15,140 Ponsse OY 690,341
10,000 Sampo Insurance Co. Ltd. - Class A 474,210
18,000 UPM-Kymmeme OY 479,317
28,500 Valmet Corp. O -Class A 491,738
7,467,478
France - 6.7%
3,000 ADA * 283,281
4,215 Alcatel Alsthom 858,056
1,564 Arkopharma (4) 126,734
12,750 Atos * 3,057,302
7,342 Banque Nationale de Paris 599,793
1,450 Boiron SA 116,058
1,917 Bouygues Offshore SA 82,424
4,500 Brit Air 260,906
698 Carrefour Supermarche 441,516
3,857 Clarins * 356,551
6,661 Compagnie de Saint-Gobain 1,234,824
2,600 Compagnie Generale des Eaux 555,085
21,186 Dassault Systemes SA 998,513
5,823 Elf Aquitaine 818,513
30,902 Financiere et Industrielle Gaz et Eaux * 1,693,527
1,500 Genset SA * 134,447
300 Genset - Sponsored ADR * 8,813
5,260 Grand Optical Photoservice 174,840
50,000 Lectra Systemes * 313,792
1,000 M6 Metropole Television 167,356
41,995 Michelin (CGDE) - Class B 2,423,723
1,000 NRJ SA * 159,418
18,573 Pechiney SA - A Shares 747,896
25,000 PixTech, Inc. * 120,312
2,410 Primagaz Cie * 211,627
200 Primagaz Cie-New 12,072
7,000 Scor SA * 443,939
3,123 Serp Recyclage SA * 413,164
4,115 Societe Generale 855,392
1,520 Sodexho SA 287,309
2,163 Ste. Guilbert SA 332,365
1,375 Union du Credit-Bail Immobilier 177,816
34,400 Usinor Sacilor 531,331
18,998,695
Germany - 5.5%
3,900 Adidas AG $679,642
1,260 Allianz AG 419,953
73,300 Bayer AG 3,793,551
580 Bayerische Mototen Werke (BMW) AG 363,163
12,200 Bayerische Vereinsbank AG 1,034,299
800 Buderus AG 399,003
32,200 Deutsche Bank AG 2,722,735
26,680 Fresenius Medical Care AG - ADR * 550,275
11,000 Hoechst AG 553,139
1,100 Holzmann (PH) AG * 262,093
4,010 LOESCH Umweltschutz AG 98,878
6,000 Mannesmann AG * 616,723
853 Marschollek,Lautenschlaeger AG * 407,901
1,220 Rhoen-Klinikum AG 120,668
720 Rhoen-Klinikum AG - Vorzugsakt 69,419
5,000 Rinol AG 217,488
19,300 RWE AG 1,142,151
5,350 SGL Carbon AG 623,134
12,500 Siemens AG 762,938
8,000 SKW Trostberg AG 288,136
6,000 VEBA AG 403,447
15,528,736
Greece - 0.1%
13,375 Attica Enterprises SA 193,094
1,900 Goody's SA 47,300
3,360 Sidenor SA 112,707
1,200 STET Hellas Telecommunications SA - ADR * 49,800
402,901
` Ireland - 0.5%
76,000 Independent Newspapers plc 408,674
5,800 IONA Technologies plc * 205,900
20,270 Irish Continental Group plc 325,578
50,000 Unidare plc 167,604
218,000 Waterford Wedgewood Units 283,167
1,390,923
Italy - 1.8%
60,000 Banca Fideuram SpA 342,833
14,000 Banca Popolare Commercio e Industria 240,196
47,000 Banco Popolare di Milano 375,492
12,500 Brembo SpA 163,994
57,006 Bulgari SpA 308,787
90,000 Credito Italiano SpA 467,955
106,500 Ente Nazionale Idrocarburi SpA 694,057
5,000 Fila Holding SpA - ADR 75,000
105,000 Holding di Partecipazioni Industriali SpA 81,901
23,600 Industrie Natuzzi SpA - ADR 613,600
73,500 Luxottica Group SpA - ADR 1,139,250
85,000 Seat SpA Co. * 57,116
92,300 Telecom Italia SpA 449,267
5,009,448
Netherlands - 5.7%
12,765 Aalberts Industries NV * 373,447
8,000 Benckiser NV * 492,084
5,087 CSM NV * 244,370
14,554 Draka Holding NV * 303,489
39,100 Elsevier NV 590,211
3,613 GTI Holding NV 129,683
25,255 IHC Caland NV 1,421,820
42,943 ING Groep NV * 2,812,473
10,814 International-Muller NV $362,097
11,701 Koninklijke Boskalis Westminster NV 173,749
15,600 Koninklijke Nedlloyd Groep NV 316,786
8,400 Philips Electronics NV 706,264
9,400 Polygram NV * 479,752
70,300 Royal Dutch Petroleum Co. 3,869,508
33,000 Van Melle NV 2,377,077
5,119 Volker Wessels Stevin 150,514
9,800 Wolters Kluwer NV 1,345,344
16,148,668
Norway - 1.1%
8,333 Dolphin Interconn 74,997
14,800 Fokus Bank AS - Class A 114,863
10,000 NetCom AS * 270,006
300,000 Norsk Lotteridrift AS * 939,151
5,000 Reiber & Son AS - Class B 46,305
33,400 Schibsted Gruppen AS 562,003
37,000 Sensonor AS * 168,917
10,000 System Etikettering AS 110,872
11,603 Tomra Systems AS 348,098
49,000 UNI Storebrand AS 434,618
3,069,830
Spain - 2.4%
2,500 Acerinox SA * 333,181
1,876 Banco Central Hispanoamericano - Class N 59,419
18,400 Banco Central Hispanoamericano SA * 579,395
18,670 Banco Intercontinental Espanol
(Bankinter) * 1,213,605
10,000 Baron de Ley SA * 332,528
15,900 Centros Comerciales Pryca SA 295,002
4,000 Compania Espanola de Petroleos SA 148,951
19,000 Corp Financiera Reunida * 287,352
2,250 Grupo Acciona SA 536,225
2,500 Hidroelectrica del Cantabrico SA -
Class C 114,327
49,300 Iberdrola SA 801,966
30,000 Prosegur, CIA de Seguridad SA 360,619
20,072 Telefonica de Espana 929,709
17,500 Viscofan Industria Navarra de Envolturas
Celulosicas SA 816,293
6,808,572
Sweden - 5.7%
30,000 ABB AB - Class B * 417,398
4,505 Allgon AB - Class B 47,715
5,823 Assa Abloy AB - Class B 228,818
4,995 Asticus AB * 55,097
21,000 Avesta - Sheffield 103,973
4,784 Bilia AB - "A" Shares 49,171
12,313 Biora AB 162,054
11,000 BT Industries AB 221,985
7,937 Dahl International AB 146,244
9,990 Diligentia AB 86,401
35,000 Electrolux AB * 601,028
15,000 Hemkoepskedjian AB - "B" Shares 193,658
7,500 Hennes & Mauritz AB * 478,503
13,500 Hoganas AB - Class B 301,203
162,525 Investment AB Bure 2,587,199
48,200 Investor AB - Class B 2,812,372
161,550 IRO AB 2,126,191
30,000 Munksjo AB 293,306
169,350 Nobel Biocare AB 2,526,028
28,500 OM Gruppen AB 593,006
16,650 SSAB Svenskt Stal AB - Class A $256,700
30,000 Stora Kopparbergs Bergslags - "A" Shares 471,923
9,000 Svenska Handelsbanken - Class A * 417,398
17,440 Telefonaktiebolaget LM Ericsson AB -
Class B 509,341
19,000 Volvo - B Shares 565,618
16,252,330
Switzerland - 7.8%
8,650 ABB AG Namen 2,624,151
36 Bachem Feinchemikalien AG * 43,448
500 Hero AG 79,305
150 Keramik Holding AG * 86,065
54 Kuoni Reisen AG 268,166
30,800 Nestle SA - ADR 3,295,622
1,167 Novartis AG 1,942,563
300 Phoenix Mecano AG 193,893
10,000 Pubigroupe SA * 3,099,650
150 Sarna Kunststoff Holding AG * 262,151
14,500 Selecta Group (The) 3,098,331
400 SGS Societe Generale de Surveillance
Holding
SA - Class B 678,230
4,650 SGS Societe Generale de Surveillance
Holding
SA - Class R 1,600,805
4,200 SMH AG (Societe Suisse pour la
Microelectronique et l'Horlogerie) 700,785
1,825 Stratec Holding AG 2,563,642
3,554 Union Bank of Switzerland * 1,321,881
250 Zehnder Holding AG - Class B 148,388
22,007,076
United Kingdom - 17.2%
35,000 Abbot Group plc 123,023
60,000 Airtours plc 453,351
90,100 Associated British Foods plc 847,699
72,400 Associated British Ports Holdings plc 411,038
18,600 Barclays plc 537,929
67,800 Bass plc 1,256,658
24,000 Bemrose Corp. plc 174,928
112,000 Berisford plc 428,270
238,277 BG plc 1,381,581
196,070 Blue Circle Industries plc 1,108,241
82,500 Boots Co. plc 1,367,942
72,000 British Aerospace plc 551,836
115,989 British Airways plc 1,249,226
30,000 BTG plc 418,285
166,563 BTR plc 472,814
69,800 Capital Group plc 600,826
257,500 Centrica plc 434,273
34,286 Clubhaus plc 57,250
15,000 Cobham plc 262,994
78,882 Cowie Group plc 457,059
75,000 Devro International plc 630,558
48,304 Diageo plc 573,882
30,600 EMI Group plc 267,742
26,000 Expro International Group plc * 217,074
8,000 F.I. Group plc 205,719
64,700 First Leisure Corp. plc 379,207
66,500 Flextech plc * 615,171
82,500 GKN plc 1,051,786
46,500 Glaxo Wellcome plc * 1,404,766
27,800 Glaxo Wellcome plc - ADR * 1,662,787
50,000 Goode Durrant plc 420,372
31,900 Granada Group plc 586,998
87,800 Great Universal Stores plc $1,158,207
80,000 Halma plc 164,308
104,450 Hanson plc 635,291
30,165 Hyder plc 474,481
45,217 Jarvis Porter Group plc 136,284
245,000 JBA Holdings plc 2,536,426
85,000 Ladbroke Group plc 466,960
100,000 LucasVariety plc 397,412
32,812 Mackie International Group plc * 7,944
160,000 Manchester United plc 427,469
57,500 Mentmore Abbey plc 78,731
80,000 Nan E D & F Group plc 414,110
22,857 Oxford Molecular Group plc * 73,471
100,000 Pace Micro Technology plc 125,235
80,000 Pearson plc 1,466,752
129,000 PIC International Group plc 879,798
35,702 Provident Financial plc 560,383
22,500 Psion plc 242,330
80,000 Racal Electronic plc 453,518
136,000 Railtrack Group plc 3,372,328
215,000 Regent Inns plc 692,883
344,000 Rentokil Initial plc 2,475,712
141,400 Rio Tinto plc 1,593,740
10,986 Select Appointments Holdings plc 156,845
21,349 Serco Group plc 493,020
31,970 Seton Healthcare Group plc 403,045
46,128 Stagecoach Holdings plc 982,063
338,900 Taylor Woodrow plc 1,137,450
192,000 Thorn plc 801,504
320,833 Toad plc * 139,289
65,800 Trinity Holdings plc * 398,289
85,000 Unigate plc 939,596
78,000 Verity Group plc 110,708
625,000 Victrex plc 2,155,086
36,700 Vodafone Group plc 466,047
15,000 Waste Recycling Group plc 112,336
25,333 Williams Holdings plc * 163,282
119,100 WPP Group plc 781,074
48,684,692
Total Europe (Cost $114,907,624) 164,330,647
North America - 7.8%
Canada - 2.1%
38,000 Abitibi-Consolidated, Inc. * 483,500
70,000 Air Canada, Inc. * 628,700
24,000 Canadian Airlines Corp. 67,932
26,234 Canadian Pacific Ltd. 744,390
29,954 Hudson's Bay Co. 692,955
20,000 Imasco Ltd. * 373,546
107,376 Imperial Oil Ltd. ADR 1,872,374
20,282 National Bank of Canada 396,747
1 Noranda, Inc. 12
46,000 Rogers Communications, Inc. - Class B * 400,626
27,000 Stelco, Inc. - Class A * 197,489
5,858,271
United States - 5.8%
10,300 Central European Media Enterprises Ltd. * $222,738
424,926 Everest Capital Frontier Ltd. LP (1) (2) 11,100,000
45,000 KLA-Tencor Corp. * 1,245,938
142,250 Physio-Control International Corp. * 3,742,953
16,311,629
Total North America (Cost $19,222,832) 22,169,900
Pacific - 18.3%
Australia - 3.0%
180,900 Amcor Ltd. 793,980
245,824 Australia and New Zealand
Banking Group Ltd. 1,700,048
252,080 Australian National Industries Ltd. 145,537
93,299 Boral Ltd. 175,498
16,299 Broken Hill Proprietary Co. Ltd. 138,116
435,191 CSR Ltd. 1,258,976
116,000 Eastern Aluminum Ltd. 86,415
470,956 Foster's Brewing Group Ltd. 1,108,207
291,849 Gio Australian Holdings Ltd. 750,809
74,891 National Australia Bank Ltd. 990,287
71,580 Orica Ltd. 424,372
160,000 Pasminco Ltd. 122,173
178,000 QNI Ltd *. 72,379
123,386 Renison Goldfields Consolidated Ltd. 122,557
225,000 Santos Ltd. 698,400
299 Woolworths Ltd. 975
8,588,729
Hong Kong - 3.5%
197,000 Cathay Pacific Airways Ltd. 138,570
39,000 Hang Seng Bank Ltd. 220,467
280,432 Hong Kong & China Gas Co., Ltd. (3) 318,504
58,000 Hong Kong Aircraft Engineering Co. Ltd. 89,829
343,000 Hong Kong Electric Holdings Ltd. 1,062,454
2,982,000 Hung Hing Printing Group 1,183,471
309,000 Hutchison Whampoa Ltd. 1,631,122
262,000 Hysan Development Co. Ltd. * 216,414
136,391 Jardine Matheson Holdings Ltd. ADR 368,256
230,812 Jardine Strategic Holdings Ltd. ADR * 438,543
250,000 Johnson Electric Holdings Ltd. * 926,033
400,000 Li & Fung Ltd. 645,320
273,222 Mandarin Oriental International Ltd. * 155,736
342,000 National Mutual Asia Ltd. 218,492
186,000 Swire Pacific Ltd. - Class A 702,172
209,000 Television Broadcasts Ltd. 552,974
1,039,000 The Guangshen Railway Co. Ltd. 136,109
794,000 Wharf (Holdings) Ltd. 783,947
9,788,413
Japan - 9.7%
23,000 Amano Corp. 202,156
31,000 Brother Industries Ltd. 115,783
8,000 Canon Chemicals, Inc. 84,217
104,000 Canon, Inc. 2,362,102
114,000 Chiyoda Fire & Marine
Insurance Co. 421,674
6,000 CSK Corp. 119,403
102,000 Dai-Ichi Kangyo Bank Ltd. 599,394
34,000 Daiichi Pharmaceutical Co. Ltd 448,626
130 East Japan Railway Co. 611,147
73,000 Eisai Co. Ltd 994,808
20 Fijitsu Denso 192
44,000 Fuji Oil 193,208
64,000 Fujitsu Denso Ltd. $673,733
82,000 Furkukawa Electric 276,112
56,000 Gakken 93,677
21,000 Hirose Electric 1,025,092
262,000 Hitachi Ltd. 1,709,640
20,000 Intec Inc. 157,762
145,000 Ishikawajima-Harima
Heavy Industries Co. Ltd. 264,511
6,000 Ito-Yokado Co., Ltd. 282,501
44 Japan Tobacco, Inc. 297,902
48,000 Kao Corp. 740,645
60,000 Kawasho Corp. 73,545
15,000 Kirin Beverage Corp. 281,743
38,000 Kirin Brewery Co. Ltd. 358,930
88,000 Koito Manufacturing Co., Ltd. 434,638
66,000 Kurita Water Industries 780,446
7,000 Kyokuto Boeki 15,243
58,000 Matsushita Electric Industries Co. 932,583
133,000 Mitsubishi Corp. 824,717
8,000 Namco Ltd. 186,892
40,000 Nichimo (Builder) 61,144
82,000 Nippon Oil Co. Ltd. 264,879
84 Nippon Telegraph and Telephone Corp. 696,517
69,000 Nippondenso Co. Ltd. 1,144,279
12,000 Nissho Electronics Corp. 87,389
18,000 Nomura Securities Co. Ltd. 209,604
34,000 Noritake Co. Ltd. 159,348
86,000 Oki Electric Industry Co. Ltd. 206,489
112,000 Osaka Gas Co. Ltd. 287,490
12,000 Roland Corp. 196,409
46,000 Sankyo Seiko Co. Ltd. 110,780
72,000 Sanwa Bank Ltd. 644,257
34,000 Sharp Corp. 275,550
38,000 Shiseido Co. Ltd. 431,812
11,000 Showa Aircraft Industry 43,464
32,000 Showa Shell Sekiyu K.K. 142,822
12,000 Sony Corp. 1,033,961
60,000 Stanley Electric Co., Ltd. 219,771
28,000 Sumitomo Forestry Co. Ltd. 158,281
30,000 Sumitomo Metal Industries 48,237
71,000 Sumitomo Realty & Development 313,303
50,000 Sumitomo Rubber Industries 269,666
86,000 Sumitomo Trust & Banking 384,455
28,000 Sumitomo Warehouse 104,780
22 Toho Co. 2,316
51,000 Tokio Marine & Fire Insurance Co. 524,378
26,000 Tokyo Broadcasting System 290,576
46,000 Tokyo Electric Power 902,156
398,000 Tokyo Gas Co. 886,740
11,700 Torii Pharmaceutical Co. Ltd. 213,011
225 West Japan Railway Co. 816,029
34,000 Yamaha Motor Co. Ltd. 213,281
36,000 Yasuda Fire & Marine Insurance 153,147
104,000 Yokohama Bank Ltd. 254,957
20,000 Yushiro Chemical Industry 74,699
27,388,999
New Zealand - 0.6%
503,700 Carter Holt Harvey Ltd. * 439,863
254,776 Telecom Corporation of New Zealand * 1,024,217
527,400 Wrightson Ltd. * 101,433
1,565,513
Singapore - 1.5%
240,000 Acer Computer International Ltd. $84,000
450,000 Courts (Singapore) Ltd. 95,943
233,350 Development Bank of Singapore 1,292,166
3,320,000 Electronic Resources Ltd. 2,261,179
46,000 Jurong Shipyard Ltd. 222,031
105,000 Overseas Union Enterprise Ltd. 154,842
25,000 Singapore Press Holdings Ltd. 167,308
238,000 TIBS Holdings Ltd.93,029 4,370,498
Total Pacific (Cost $62,707,585) 51,702,152
Emerging Markets - 4.5%
Argentina - 0.2%
59,600 Quilmes Industrial SA 524,480
Bermuda - 0.3%
18,000 PartnerRe Ltd. 918,000
India - 0.0% ++
6,000 Shiriram Industries - GDR * 7,500
Indonesia - 0.1%
998,000 PT Bank Danamon Indonesia * 6,836
1,232,000 PT Citra Marga Nusaphala Persada 25,315
2,155,000 PT Davomas Abadi 73,801
120,000 PT Gudang Garam 71,507
74,500 PT Hero Supermarket 5,485
328,000 PT Lippo Bank 16,849
1,236,000 PT Matahari Putra Prima TBK 12,699
385,000 Pt Panin Bank (4) 9,230
268,000 PT Semen Gresik 154,192
375,914
Israel - 1.0%
75,000 Orbotech Ltd. * 2,728,125
Malaysia - 0.6%
85,000 Carsberg AS 258,540
197,000 Kumpulan Guthrie Berhad 114,134
140,000 Malayan Banking Berhad 141,267
97,000 Perlis Plantations Berhad 84,297
272,000 Resorts World Berhad 299,413
35,000 Rothmans of Pall Mall Berhad 242,909
425,800 Sime Darby Berhad 293,974
330,000 Technology Resources Industries -
Series A 227,037
1,661,571
Mexico - 1.1%
125,000 Desc Sociedad de Fomento Industrial
SA de CV 640,098
168,000 Grupo Financiero Banamex
Accival SA de CV * 323,544
5,040 Grupo Financiero Banamex Accival
SA de CV - Class L * 7,855
10,350 Grupo Televisa SA - GDR * 389,419
257,000 Kimberly-Clark de Mexico SA de CV 909,785
15,200 Telefonos de Mexico SA - Class L ADR * 730,550
26,000 Vitro Sociedad Aninima - ADR 165,750
3,167,001
Philippines - 0.1%
158,000 San Miquel SA - Class B 209,398
Portugal - 0.1%
7,110 Brisa-Auto Estradas de Portugal SA $304,241
South Africa - 0.7%
6,209 Anglogold Ltd. - ADR 125,972
8,800 De Beers Consolidated Mines Ltd. * 154,000
133,000 Gencor Ltd. 206,438
4,242 Kersaf Investments Ltd. 19,430
311,089 LibLife Strategic Investments Ltd. 920,866
62,959 Plessey Corp. Ltd. 87,042
224,566 SA Iron & Steel Industrial Corp. Ltd. 42,666
39,500 Safmarine and Rennies Holdings Ltd. * 30,153
26,000 Sappi Ltd. * 98,132
2,804 South African Breweries Ltd. 58,030
7,063 South African Breweries Ltd. - ADR 146,295
1,889,024
Thailand - 0.3%
37,000 Advanced Info Service plc 157,820
240,000 Bangkok Bank Public Co. Ltd. 295,735
33,000 Matichon Public Co. Ltd. 39,099
89,000 MBK Properties and Development Public
Co. Ltd. 33,217
246,000 National Finance & Securities Co. Ltd. * 19,237
120,000 Post Publishing Co., Ltd. * 65,403
41,000 The Siam Cement Co., Ltd. * 198,199
133,000 The Thai Farmers Bank, Ltd. 117,399
926,109
Total Emerging Markets
(Cost $20,084,647) 12,711,363
Total Common Stocks
(Cost $216,922,688) 250,914,062
Preferred Stocks - 1.1%
12,833 IFI Istituto Finanziario (Italy) 268,923
200 Porsche AG (Germany) 576,273
6,325 Sto AG - O.S. Vorzugs (Germany) 2,369,203
Total Preferred Stocks (Cost $2,984,677) 3,214,399
Warrants - 0.0% ++
48,000 Acer Computer Int'l Ltd. expiring 7/31/01
(Singapore) * 1,706
20,000 Atlantis Japan Growth Fund expiring 4/30/10
(Japan) * 3,500
16,000 Hysan Development Co. Ltd. expiring 4/30/99
(Hong Kong) 132
299,444 PT Panin Bank 0
2,680 TEGE SA (Switzerland)
expiring 6/20/01 57,442
Total Warrants (Cost $18,720)
62,780
Convertible Bonds - 0.1%
25,000,000 Sumitomo Wiring Systems CVT, 0.900%
due 9/30/08 (Japan) (Cost $227,872) 148,713
Comingled Investment Vehicles - 4.2%
104,000 Atlantis Japan Growth Fund * 380,879
25,400 Indonesian Development Fund, Ltd. * 50,800
1,102,753 Investable Emerging Markets Country
Fund LP (1) (2) ** 11,468,633
40,000 The First Korea Smaller Companies Fund * 124,800
Total Comingled Investment Vehicles
(Cost $14,825,149 ) 12,025,112
Total Long-Term Investments
(Cost $234,979,106) 266,365,066
Short-Term Investments - 9.8%
U.S. Treasury Security - 0.3%
$765,000 U.S. Treasury Bill, 4.964% due 10/15/98 # $753,714
Repurchase Agreement - 5.2%
$14,728,035 Repurchase Agreement, 5.200%, dated 6/30/98,
due 7/1/98 with Investors Bank & Trust Company
collateralized by ($10,000,000 Chase Capital
6.219% due 2/1/27 - market value $10,207,292;
$5,119,198 FHLMC ARM 7.741% due 7/1/25 -
market value $5,257,497)
(Cost $14,728,035) 14,728,035
Investment of Cash Collateral
for Securities Loaned - 4.3%
12,107,677 Bank of Boston Euro-dollar 6.580% maturing
10/3/98 (Cost $12,107,677) 12,107,677
Total Short-Term Investments
(Cost $27,589,406) 27,589,426
Total Investments (Cost $262,568,512) 293,954,492
Liabilities in Excess
of Other Assets - (4.0%) (11,236,815)
Net Assets - 100% $282,717,677
+ See Note 2 to the Financial Statements.
++ Round to less than 0.1%
# Interest rate represents the yield to maturity at
the time of purchase.
* Non-income producing security.
** Deemed to be an investment in an affiliate.
ADR American Depository Receipt
GDR Global Depository Reciept
(1) Security is fair valued in good faith under procedures
established by the board of directors of the fund.
(2) Deemed to be a restricted security.
(3) With additional recoverable rights attached with no market value.
(4) With additional recoverable rights attached maturing on 9/30/99
with no market value.
See accompanying Notes to Financial Statements.
TIFF International Equity Fund / Schedule of Investments June 30, 1998
(unaudited)
Long-Term Investments - 94.2%
Common Stocks - 88.8%
Europe - 58.1%
Belgium - 0.4%
4,100 Electrabel SA $1,163,019
Denmark - 0.5%
6,000 Bang & Olufsen Holding AS - Series B 432,126
2,500 Coloplast AS - Class B 245,526
2,340 De Sammensluttede Vognmano AS 248,538
3,750 Falck AS 231,885
4,548 Spar Nord Holding AS 240,204
1,398,279
Finland - 2.7%
9,892 KCI Konecranes International 496,152
3,000 Metra OY - "B" Shares 97,395
50,000 Metsa-Serla OY - Class B 483,330
8,800 Nokia OY - Class A 650,033
6,333 Nokian Renkaat OY 277,100
21,800 Outokumpo OY 278,325
95,000 OY Hartwall AB * 3,049,537
15,140 Ponsse OY 690,341
10,000 Sampo Insurance Co. Ltd. - Class A 474,210
18,000 UPM-Kymmeme OY 479,317
28,500 Valmet Corp. OY - Class A 491,738
7,467,478
France - 6.7%
3,000 ADA * 283,281
4,215 Alcatel Alsthom 858,056
1,564 Arkopharma (4) 126,734
12,750 Atos * 3,057,302
7,342 Banque Nationale de Paris 599,793
1,450 Boiron SA 116,058
1,917 Bouygues Offshore SA 82,424
4,500 Brit Air 260,906
698 Carrefour Supermarche 441,516
3,857 Clarins * 356,551
6,661 Compagnie de Saint-Gobain 1,234,824
2,600 Compagnie Generale des Eaux 555,085
21,186 Dassault Systemes SA 998,513
5,823 Elf Aquitaine 818,513
30,902 Financiere et Industrielle Gaz et Eaux * 1,693,527
1,500 Genset SA * 134,447
300 Genset - Sponsored ADR * 8,813
5,260 Grand Optical Photoservice 174,840
50,000 Lectra Systemes * 313,792
1,000 M6 Metropole Television 167,356
41,995 Michelin (CGDE) - Class B 2,423,723
1,000 NRJ SA * 159,418
18,573 Pechiney SA - A Shares 747,896
25,000 PixTech, Inc. * 120,312
2,410 Primagaz Cie * 211,627
200 Primagaz Cie-New 12,072
7,000 Scor SA * 443,939
3,123 Serp Recyclage SA * 413,164
4,115 Societe Generale 855,392
1,520 Sodexho SA 287,309
2,163 Ste. Guilbert SA 332,365
1,375 Union du Credit-Bail Immobilier 177,816
34,400 Usinor Sacilor 531,331
18,998,695
Germany - 5.5%
3,900 Adidas AG $679,642
1,260 Allianz AG 419,953
73,300 Bayer AG 3,793,551
580 Bayerische Mototen Werke (BMW) AG 363,163
12,200 Bayerische Vereinsbank AG 1,034,299
800 Buderus AG 399,003
32,200 Deutsche Bank AG 2,722,735
26,680 Fresenius Medical Care AG - ADR * 550,275
11,000 Hoechst AG 553,139
1,100 Holzmann (PH) AG * 262,093
4,010 LOESCH Umweltschutz AG 98,878
6,000 Mannesmann AG * 616,723
853 Marschollek, Lautenschlaeger AG * 407,901
1,220 Rhoen-Klinikum AG 120,668
720 Rhoen-Klinikum AG - Vorzugsakt 69,419
5,000 Rinol AG 217,488
19,300 RWE AG 1,142,151
5,350 SGL Carbon AG 623,134
12,500 Siemens AG 762,938
8,000 SKW Trostberg AG2 88,136
6,000 VEBA AG 403,447
15,528,736
Greece - 0.1%
13,375 Attica Enterprises SA 193,094
1,900 Goody's SA 47,300
3,360 Sidenor SA 112,707
1,200 STET Hellas Telecommunications SA - ADR * 49,800
402,901
` Ireland - 0.5%
76,000 Independent Newspapers plc 408,674
,800 IONA Technologies plc * 205,900
20,270 Irish Continental Group plc 325,578
50,000 Unidare plc 167,604
218,000 Waterford Wedgewood Units 283,167
1,390,923
Italy - 1.8%
60,000 Banca Fideuram SpA 342,833
14,000 Banca Popolare Commercio e Industria 240,196
47,000 Banco Popolare di Milano 375,492
12,500 Brembo SpA 163,994
57,006 Bulgari SpA 308,787
90,000 Credito Italiano SpA 467,955
106,500 Ente Nazionale Idrocarburi SpA 694,057
5,000 Fila Holding SpA - ADR 75,000
105,000 Holding di Partecipazioni Industriali Sp A81,901
23,600 Industrie Natuzzi SpA - ADR 613,600
73,500 Luxottica Group SpA - ADR 1,139,250
85,000 Seat SpA Co. * 57,116
92,300 Telecom Italia SpA 449,267
5,009,448
Netherlands - 5.7%
12,765 Aalberts Industries NV * 373,447
8,000 Benckiser NV * 492,084
5,087 CSM NV * 244,370
14,554 Draka Holding NV * 303,489
39,100 Elsevier NV 590,211
3,613 GTI Holding NV 129,683
25,255 IHC Caland NV 1,421,820
42,943 ING Groep NV * 2,812,473
10,814 International-Muller NV $362,097
11,701 Koninklijke Boskalis Westminster NV 173,749
15,600 Koninklijke Nedlloyd Groep NV 316,786
8,400 Philips Electronics NV 706,264
9,400 Polygram NV * 479,752
70,300 Royal Dutch Petroleum Co. 3,869,508
33,000 Van Melle NV 2,377,077
5,119 Volker Wessels Stevin 150,514
9,800 Wolters Kluwer NV 1,345,344
16,148,668
Norway - 1.1%
8,333 Dolphin Interconn 74,997
14,800 Fokus Bank AS - Class A 114,863
10,000 NetCom AS * 270,006
300,000 Norsk Lotteridrift AS * 939,151
5,000 Reiber & Son AS - Class B 46,305
33,400 Schibsted Gruppen AS 562,003
37,000 Sensonor AS * 168,917
10,000 System Etikettering AS 110,872
11,603 Tomra Systems AS 348,098
49,000 UNI Storebrand AS 434,618
3,069,830
Spain - 2.4%
2,500 Acerinox SA * 333,181
1,876 Banco Central Hispanoamericano - Class N 59,419
18,400 Banco Central Hispanoamericano SA * 579,395
18,670 Banco Intercontinental Espanol (Bankinter) * 1,213,605
10,000 Baron de Ley SA * 332,528
15,900 Centros Comerciales Pryca SA 295,002
4,000 Compania Espanola de Petroleos SA 148,951
19,000 Corp Financiera Reunida * 287,352
2,250 Grupo Acciona SA 536,225
2,500 Hidroelectrica del Cantabrico SA - Class C 114,327
49,300 Iberdrola SA 801,966
30,000 Prosegur, CIA de Seguridad SA 360,619
20,072 Telefonica de Espana 929,709
17,500 Viscofan Industria Navarra de Envolturas
Celulosicas SA 816,293
6,808,572
Sweden - 5.7%
30,000 ABB AB - Class B * 417,398
4,505 Allgon AB - Class B 47,715
5,823 Assa Abloy AB - Class B 228,818
4,995 Asticus AB * 55,097
21,00 Avesta - Sheffield 103,973
4,784 Bilia AB - "A" Shares 49,171
12,313 Biora AB 162,054
11,000 BT Industries AB 221,985
7,937 Dahl International AB 146,244
9,990 Diligentia AB 86,401
35,000 Electrolux AB * 601,028
15,000 Hemkoepskedjian AB - "B" Shares 193,658
7,500 Hennes & Mauritz AB * 478,503
13,500 Hoganas AB - Class B 301,203
162,525 Investment AB Bure 2,587,199
48,200 Investor AB - Class B 2,812,372
161,550 IRO AB 2,126,191
30,000 Munksjo AB 293,306
169,350 Nobel Biocare AB 2,526,028
28,500O M Gruppen AB 593,006
16,650 SSAB Svenskt Stal AB - Class A $256,700
30,000 Stora Kopparbergs Bergslags - "A" Shares 471,923
9,000 Svenska Handelsbanken - Class A * 417,398
17,440 Telefonaktiebolaget LM Ericsson AB - Class B 509,341
19,000 Volvo - B Shares 565,618
16,252,330
Switzerland - 7.8%
8,650 ABB AG Namen 2,624,151
36 Bachem Feinchemikalien AG * 43,448
500 Hero AG 79,305
150 Keramik Holding AG * 86,065
54 Kuoni Reisen AG 268,166
30,800 Nestle SA - ADR 3,295,622
1,167 Novartis AG 1,942,563
300 Phoenix Mecano AG 193,893
10,000 Pubigroupe SA * 3,099,650
150 Sarna Kunststoff Holding AG * 262,151
14,500 Selecta Group (The) 3,098,331
400 SGS Societe Generale de Surveillance Holding
SA - Class B 678,230
4,650 SGS Societe Generale de Surveillance
Holding
SA - Class R 1,600,805
4,200 SMH AG (Societe Suisse pour la
Microelectronique et l'Horlogerie) 700,785
1,825 Stratec Holding AG 2,563,642
3,554 Union Bank of Switzerland * 1,321,881
250 Zehnder Holding AG - Class B 148,388
22,007,076
United Kingdom - 17.2%
35,000 Abbot Group plc 123,023
60,000 Airtours plc 453,351
90,100 Associated British Foods plc 847,699
72,400 Associated British Ports Holdings plc 411,038
18,600 Barclays plc 537,929
67,800 Bass plc 1,256,658
24,000 Bemrose Corp. plc 174,928
112,000 Berisford plc 428,270
238,277 BG plc 1,381,581
196,070 Blue Circle Industries plc 1,108,241
82,500 Boots Co. plc 1,367,942
72,000 British Aerospace plc 551,836
115,989 British Airways plc 1,249,226
30,000 BTG plc 418,285
166,563 BTR plc 472,814
69,800 Capital Group plc 600,826
257,500 Centrica plc 434,273
34,286 Clubhaus plc 57,250
15,000 Cobham plc 262,994
78,882 Cowie Group plc 457,059
75,000 Devro International plc 630,558
48,304 Diageo plc 573,882
30,600 EMI Group plc 267,742
26,000 Expro International Group plc * 217,074
8,000 F.I. Group plc 205,719
64,700 First Leisure Corp. plc 379,207
66,500 Flextech plc * 615,171
82,500 GKN plc 1,051,786
46,500 Glaxo Wellcome plc * 1,404,766
27,800 Glaxo Wellcome plc - ADR * 1,662,787
50,000 Goode Durrant plc 420,372
31,900 Granada Group plc 586,998
87,800 Great Universal Stores plc $1,158,207
80,000 Halma plc 164,308
104,450 Hanson plc 635,291
30,165 Hyder plc 474,481
45,217 Jarvis Porter Group plc 136,284
245,000 JBA Holdings plc 2,536,426
85,000 Ladbroke Group plc 466,960
100,000 LucasVariety plc 397,412
32,812 Mackie International Group plc * 7,944
160,000 Manchester United plc 427,469
57,500 Mentmore Abbey plc 78,731
80,000 Nan E D & F Group plc 414,110
22,857 Oxford Molecular Group plc * 73,471
100,000 Pace Micro Technology plc 125,235
80,000 Pearson plc 1,466,752
129,000 PIC International Group plc 879,798
35,702 Provident Financial plc 560,383
22,500 Psion plc 242,330
80,000 Racal Electronic plc 453,518
136,000 Railtrack Group plc 3,372,328
215,000 Regent Inns plc 692,883
344,000 Rentokil Initial plc 2,475,712
141,400 Rio Tinto plc 1,593,740
10,986 Select Appointments Holdings plc 156,845
21,349 Serco Group plc 493,020
31,970 Seton Healthcare Group plc 403,045
46,128 Stagecoach Holdings plc 982,063
338,900 Taylor Woodrow plc 1,137,450
192,000 Thorn plc 801,504
320,833 Toad plc * 139,289
65,800 Trinity Holdings plc * 398,289
85,000 Unigate plc 939,596
78,000 Verity Group plc 110,708
625,000 Victrex plc 2,155,086
36,700 Vodafone Group plc 466,047
15,000 Waste Recycling Group plc 112,336
25,333 Williams Holdings plc * 163,282
119,100 WPP Group plc 781,074
48,684,692
Total Europe (Cost $114,907,624) 164,330,647
North America - 7.8%
Canada - 2.1%
38,000 Abitibi-Consolidated, Inc. * 483,500
70,000 Air Canada, Inc. * 628,700
24,000 Canadian Airlines Corp. 67,932
26,234 Canadian Pacific Ltd. 744,390
29,954 Hudson's Bay Co. 692,955
20,000 Imasco Ltd. * 373,546
107,376 Imperial Oil Ltd. ADR 1,872,374
20,282 National Bank of Canada 396,747
1 Noranda, Inc. 12
46,000 Rogers Communications, Inc. - Class B * 400,626
27,000 Stelco, Inc. - Class A * 197,489
5,858,271
United States - 5.8%
10,300 Central European Media Enterprises Ltd.* $222,738
424,926 Everest Capital Frontier Ltd. LP (1) (2) 11,100,000
45,000 KLA-Tencor Corp. * 1,245,938
142,250 Physio-Control International Corp. * 3,742,953
16,311,629
Total North America (Cost $19,222,832) 22,169,900
Pacific - 18.3%
Australia - 3.0%
180,900 Amcor Ltd. 793,980
245,824 Australia and New Zealand
Banking Group Ltd. 1,700,048
252,080 Australian National Industries Ltd. 145,537
93,299 Boral Ltd. 175,498
16,299 Broken Hill Proprietary Co. Ltd. 138,116
435,191 CSR Ltd. 1,258,976
116,000 Eastern Aluminum Ltd. 86,415
470,956 Foster's Brewing Group Ltd. 1,108,207
291,849 Gio Australian Holdings Ltd. 750,809
74,891 National Australia Bank Ltd. 990,287
71,580 Orica Ltd. 424,372
160,000 Pasminco Ltd. 122,173
178,000 QNI Ltd *. 72,379
123,386 Renison Goldfields Consolidated Ltd. 122,557
225,000 Santos Ltd. 698,400
299 Woolworths Ltd. 975
8,588,729
Hong Kong - 3.5%
197,000 Cathay Pacific Airways Ltd. 138,570
39,000 Hang Seng Bank Ltd. 220,467
280,432 Hong Kong & China Gas Co., Ltd. (3) 318,504
58,000 Hong Kong Aircraft Engineering Co. Ltd. 89,829
343,000 Hong Kong Electric Holdings Ltd. 1,062,454
2,982,000 Hung Hing Printing Group 1,183,471
309,000 Hutchison Whampoa Ltd. 1,631,122
262,000 Hysan Development Co. Ltd. * 216,414
136,391 Jardine Matheson Holdings Ltd. ADR 368,256
230,812 Jardine Strategic Holdings Ltd. ADR * 438,543
250,000 Johnson Electric Holdings Ltd. * 926,033
400,000 Li & Fung Ltd. 645,320
273,222 Mandarin Oriental International Ltd. * 155,736
342,000 National Mutual Asia Ltd. 218,492
186,000Swire Pacific Ltd. - Class A 702,172
209,000 Television Broadcasts Ltd. 552,974
1,039,000The Guangshen Railway Co. Ltd. 136,109
794,000 Wharf (Holdings) Ltd. 783,947
9,788,413
Japan - 9.7%
23,000 Amano Corp. 202,156
31,000 Brother Industries Ltd. 115,783
8,000 Canon Chemicals, Inc. 84,217
104,000 Canon, Inc. 2,362,102
114,000 Chiyoda Fire & Marine Insurance Co. 421,674
6,000 CSK Corp. 119,403
102,000 Dai-Ichi Kangyo Bank Ltd. 599,394
34,000 Daiichi Pharmaceutical Co. Ltd 448,626
130 East Japan Railway Co. 611,147
73,000 Eisai Co. Ltd 994,808
20 Fijitsu Denso 192
44,000 Fuji Oil 193,208
64,000 Fujitsu Denso Ltd. $673,733
82,000 Furkukawa Electric 276,112
56,000 Gakken 93,677
21,000 Hirose Electric 1,025,092
262,000 Hitachi Ltd. 1,709,640
20,000 Intec Inc. 157,762
145,000 Ishikawajima-Harima Heavy Industries Co. Ltd. 264,511
6,000 Ito-Yokado Co., Ltd. 282,501
44 Japan Tobacco, Inc. 297,902
48,000 Kao Corp. 740,645
60,000 Kawasho Corp. 73,545
15,000 Kirin Beverage Corp. 281,743
38,000 Kirin Brewery Co. Ltd. 358,930
88,000Koito Manufacturing Co., Ltd. 434,638
66,000 Kurita Water Industries 780,446
7,000 Kyokuto Boeki 15,243
58,000
Matsushita Electric Industries Co. 932,583
133,000 Mitsubishi Corp. 824,717
8,000 Namco Ltd. 186,892
40,000 Nichimo(Builder) 61,144
82,000 Nippon Oil Co. Ltd. 264,879
84 Nippon Telegraph and Telephone Corp. 696,517
69,000 Nippondenso Co. Ltd. 1,144,279
12,000 Nissho Electronics Corp.87,389
18,000 Nomura Securities Co. Ltd. 209,604
34,000 Noritake Co. Ltd. 159,348
86,000 Oki Electric Industry Co. Ltd. 206,489
112,000 Osaka Gas Co. Ltd. 287,490
12,000 Roland Corp. 196,409
46,000 Sankyo Seiko Co. Ltd. 110,780
72,000 Sanwa Bank Ltd. 644,257
34,000 Sharp Corp. 275,550
38,000 Shiseido Co. Ltd. 431,812
11,000 Showa Aircraft Industry 43,464
32,000 Showa Shell Sekiyu K.K. 142,822
12,000 Sony Corp 1,033,961
60,000 Stanley Electric Co., Ltd. 219,771
28,000 Sumitomo Forestry Co. Ltd. 158,281
30,000 Sumitomo Metal Industries 48,237
71,000 Sumitomo Realty & Development 313,303
50,000 Sumitomo Rubber Industries 269,666
86,000 Sumitomo Trust & Banking 384,455
28,000 Sumitomo Warehouse 104,780
22 Toho Co. 2,316
51,000 Tokio Marine & Fire Insurance Co. 524,378
26,000 Tokyo Broadcasting System 290,576
46,000 Tokyo Electric Power 902,156
398,000 Tokyo Gas Co. 886,740
11,700 Torii Pharmaceutical Co. Ltd. 213,011
225 West Japan Railway Co. 816,029
34,000 Yamaha Motor Co. Ltd. 213,281
36,000 Yasuda Fire & Marine Insurance 153,147
104,000 Yokohama Bank Ltd. 254,957
20,000 Yushiro Chemical Industry 74,699
27,388,999
New Zealand - 0.6%
503,700 Carter Holt Harvey Ltd. * 439,863
254,776 Telecom Corporation of New Zealand * 1,024,217
527,400 Wrightson Ltd. * 101,433
1,565,513
Singapore - 1.5%
240,000 Acer Computer International Ltd. $84,000
450,000 Courts (Singapore) Ltd. 95,943
233,350 Development Bank of Singapore 1,292,166
3,320,000 Electronic Resources Ltd. 2,261,179
46,000 Jurong Shipyard Ltd. 222,031
105,000 Overseas Union Enterprise Ltd. 154,842
25,000 Singapore Press Holdings Ltd. 167,308
238,000 TIBS Holdings Ltd. 93,029
4,370,498
Total Pacific (Cost $62,707,585) 51,702,152
Emerging Markets - 4.5%
Argentina - 0.2%
59,600 Quilmes Industrial SA 524,480
Bermuda - 0.3%
18,000 PartnerRe Ltd. 918,000
India - 0.0% ++
6,000 Shiriram Industries - GDR * 7,500
Indonesia - 0.1%
998,000 PT Bank Danamon Indonesia * 6,836
1,232,000PT Citra Marga Nusaphala Persada 25,315
2,155,000 PT Davomas Abadi 73,801
120,000 PT Gudang Garam 71,507
74,500 PT Hero Supermarket 5,485
328,000 PT Lippo Bank 16,849
1,236,000 PT Matahari Putra Prima TBK 12,699
385,000 Pt Panin Bank (4) 9,230
268,000 PT Semen Gresik 154,192
375,914
Israel - 1.0%
75,000 Orbotech Ltd. * 2,728,125
Malaysia - 0.6%
85,000 Carsberg AS 258,540
197,000 Kumpulan Guthrie Berhad 114,134
140,000 Malayan Banking Berhad 141,267
97,000Perlis Plantations Berhad 84,297
272,000 Resorts World Berhad 299,413
35,000 Rothmans of Pall Mall Berhad 242,909
425,800 Sime Darby Berhad 293,974
330,000 Technology Resources Industries - Series A 227,037
1,661,571
Mexico - 1.1%
125,000 Desc Sociedad de Fomento Industrial SA de CV 640,098
168,000 Grupo Financiero Banamex
Accival SA de CV * 323,544
5,040 Grupo Financiero Banamex Accival SA de CV -
Class L * 7,855
10,350 Grupo Televisa SA - GDR * 389,419
257,000 Kimberly-Clark de Mexico SA de CV 909,785
15,200 Telefonos de Mexico SA - Class L ADR * 730,550
26,000 Vitro Sociedad Aninima - ADR 165,750
3,167,001
Philippines - 0.1%
158,000 San Miquel SA - Class B 209,398
Portugal - 0.1%
7,110 Brisa-Auto Estradas de Portugal SA $304,241
South Africa - 0.7%
6,209 Anglogold Ltd. - ADR 125,972
8,800 De Beers Consolidated Mines Ltd. * 154,000
133,000 Gencor Ltd. 206,438
4,242 Kersaf Investments Ltd. 19,430
311,089 LibLife Strategic Investments Ltd. 920,866
62,959 Plessey Corp. Ltd. 87,042
224,566 SA Iron & Steel Industrial Corp. Ltd. 42,666
39,500 Safmarine and Rennies Holdings Ltd. * 30,153
26,000 Sappi Ltd. * 98,132
2,804 South African Breweries Ltd. 58,030
7,063 South African Breweries Ltd. - ADR 146,295
1,889,024
Thailand - 0.3%
37,000 Advanced Info Service plc 157,820
240,000 Bangkok Bank Public Co. Ltd. 295,735
33,000 Matichon Public Co. Ltd. 39,099
89,000 MBK Properties and Development Public Co. Ltd. 33,217
246,000 National Finance & Securities Co. Ltd. * 19,237
120,000 Post Publishing Co., Ltd. * 65,403
41,000 The Siam Cement Co., Ltd. * 198,199
133,000 The Thai Farmers Bank, Ltd. 117,399
926,109
Total Emerging Markets
(Cost $20,084,647) 12,711,363
Total Common Stocks
(Cost $216,922,688) 250,914,062
Preferred Stocks - 1.1%
12,833 IFI Istituto Finanziario (Italy) 268,923
200 Porsche AG (Germany) 576,273
6,325 Sto AG - O.S. Vorzugs (Germany) 2,369,203
Total Preferred Stocks (Cost $2,984,677) 3,214,399
Warrants - 0.0% ++
48,000 Acer Computer Int'l Ltd. expiring 7/31/01
(Singapore) * 1,706
20,000 Atlantis Japan Growth Fund expiring 4/30/10
(Japan) * 3,500
16,000 Hysan Development Co. Ltd. expiring 4/30/99
(Hong Kong) 132
299,444 PT Panin Bank 0
2,680 TEGE SA (Switzerland) expiring 6/20/01 57,442
Total Warrants (Cost $18,720) 62,780
Convertible Bonds - 0.1%
25,000,000Sumitomo Wiring Systems CVT, 0.900%
due 9/30/08 (Japan) (Cost $227,872) 148,713
Comingled Investment Vehicles - 4.2%
104,000 Atlantis Japan Growth Fund * 380,879
25,400 Indonesian Development Fund, Ltd. * 50,800
1,102,753 Investable Emerging Markets Country
Fund LP (1) (2) ** 11,468,633
40,000 The First Korea Smaller Companies Fund *
124,800 Total Comingled Investment Vehicles
(Cost $14,825,149 ) 12,025,112
Total Long-Term Investments
(Cost $234,979,106) 266,365,066
Short-Term Investments - 9.8%
U.S. Treasury Security - 0.3%
$765,000 U.S. Treasury Bill, 4.964% due 10/15/98 # $753,714
Repurchase Agreement - 5.2%
$14,728,035 Repurchase Agreement, 5.200%,
dated 6/30/98,due 7/1/98 with Investors
Bank & Trust Company
collateralized by ($10,000,000
Chase Capital
6.219% due 2/1/27 - market value
$10,207,292; $5,119,198
FHLMC ARM 7.741% due 7/1/25 market
value $5,257,497) (Cost
$14,728,035) 14,728,035
Investment of Cash Collateral
for Securities Loaned - 4.3%
12,107,677 Bank of Boston Euro-dollar 6.580% maturing
10/3/98 (Cost $12,107,677) 12,107,677
Total Short-Term Investments
(Cost $27,589,406) 27,589,426
Total Investments (Cost $262,568,512) 293,954,492
Liabilities in Excess
of Other Assets - (4.0%) (11,236,815)
Net Assets - 100% $282,717,677
+ See Note 2 to the Financial Statements.
++ Round to less than 0.1%
# Interest rate represents the yield to maturity
at the time of purchase.
* Non-income producing security.
** Deemed to be an investment in an affiliate.
ADR American Depository Receipt
GDR Global Depository Reciept
(1) Security is fair valued in good faith under procedures
established by the board of directors of the fund.
(2) Deemed to be a restricted security.
(3) With additional recoverable rights attached with no market value.
(4) With additional recoverable rights attached maturing on 9/30/99
with no market value.
See accompanying Notes to Financial Statements.
Policy Considerations
Investor perceptions of emerging markets have proven about as stable in recent
years as the Baltimore Orioles' pitching staff (i.e., wildly erratic). What was
seen as a no-lose proposition in 1993 was seen as a no-win proposition by most
investors a year later, setting the stage for a powerful rebound that lifted the
Fund's since inception return from negative territory to a respectable 15% in
mid-1997. The collapse of the Thai baht then kicked off a chain of events that
has caused most emerging bourses to fall to levels last seen in the early 1990s.
Panicked selling by investors belatedly discovering that their time horizons are
shorter than they had supposed has created some compelling opportunities in
emerging markets. But the fact that most of these opportunities derive from
reduced investor time horizons (as distinct from improving fundamentals, which
are evident in few emerging economies) makes the short-term risks of investing
in emerging markets substantial. For foundations that have not invested in such
markets previously, the wisest course might be to eschew "pure plays" in favor
of more diversified funds whose managers are permitted but not compelled to
invest in emerging markets (e.g., the TIFF International Equity or Multi-Asset
Funds).
Investment Performance for
the Periods Ended June 30, 1998
Average Annual
Total Return (Net of Fees)
Since
Trailing Inception
1 Year 5/31/94
TIFF Emerging Markets Fund -35.6 -8.6
MSCI Emerging Markets Free -40.4 -9.4
Performance Evaluation
Toward the end of his remarks to a gathering of TIFF Members in mid-May,
emerging markets specialist Antoine van Agtmael furnished a list of potential
events that "keep [him] awake at night." Unfortunately, several of these events
actually unfolded during the latter half of May and June (e.g., Japan's
condition worsened, Russian tax receipts continued to dry up, Korea and her
neighbors encountered difficulties in restucturing their debts, etc.), and the
MSCI Emerging Markets Free Index plummeted 24.2%. Four of the Fund's five
managers beat the Index, one (EMM) equaled it, and the Fund managed to
outperform its benchmark by 1.2%. Normally, a quarterly excess return of 1.2%
would represent success. This year, for obvious reasons, we take no pleasure in
relative returns. Buy low.
TIFF Emerging Markets Fund / Schedule of Investments
June 30, 1998 (unaudited)
Long-Term Investments - 93.6%
Common Stocks - 70.6%
Latin America - 24.9%
Argentina - 2.0%
36,000 Argentina Fund, Inc. $391,500
12,800 Banco Rio de la Plata - ADR 135,200
22,879 CEI Citicorp Holdings SA * 91,530
29,680 Compania Naviera Perez Companc 148,718
14,638 Dragados y Construcciones Argentina -
Series B * 43,921
1,456 Inversiones y Representacion - GDR 42,406
48,411 IRSA, Inversiones y Representaciones SA
(144A) (d) 142,348
4,200 Nortel Inversora SA - ADR 104,475
9,300 YPF-Sociedad Anonima ADR 279,581
1,379,679
Brazil - 3.5%
8,400 Aracruz Celulose SA - Sponsored ADR 96,075
30,740,000Avipal SA - Avicultura e Agropecuaria 46,110
2,600,000 Banco do Estada de Sao Paulo SA 96,671
48,000 Brazil Fund, Inc. 870,000
1,900 Brazil Realty SA (144A) - GDR (d) 41,889
1,000,000 Brazilian Real Put Option 20,000
250,000 Brazilian Smaller Companies Inv. Trust plc 200,200
1,276 Cemig Cia Energy SA - ADR * 39,508
953 Cemig SA Energy - ADR * 29,508
1,368,666Cia Energetica Do Brasilia - B 48,510
890,000 Companhia Cimento Portland Itau 163,117
2,070,000 Companhia de Eletricidade do Estado de Bahia 76,965
104,239 Gerdau Metalurgica SA 2,481
289,000 Industrian Klabin de Papel e Celulose SA 119,948
70,000 Makro Atacadista SA 52,659
4,100 Makro Atacadista SA - GDS 31,775
1,150,000 Saneamento Basico do Estado de Sao Paulo 141,202
3,900,000 Telecomunicacoes Brasileiras Telebras SA 308,560
2,385,178
Chile - 2.7%
22,800 A.F.P. Provida SA - Sponsored ADR 380,475
26,900 Chilectra SA - ADR * 576,634
14,400 Compania de Telecomunicaciones de Chile SA-
Sponsored ADR * 292,500
3,900 Cristalerias de Chile SA - ADR * 50,700
14,400 Empresa Nacional de Electric - ADR 205,200
9,435 Gener SA - ADR 172,189
25,100 Maderas y Sinteticos Sociedad
Anonima SA - ADR 203,938 `
1,881,636
Colombia - 1.2%
52,036 Bavaria 303,716
3,950 Cementos Paz del Rio - ADR * 38,877
51,016 Exito 100,495
71,350 Pisos Asfalto y Vinilos Colo * 5,518
80,832 Suramericana de Seguros SA 253,586
50,340 Valores Bavaria SA 91,450
793,642
Latin American Region - 5.3%
400,000 Edinburgh Inca Trust plc * 155,291
712,500 Latin America Investment Trust Fund * 1,225,500
22,900 Latin American Discovery Fund, Inc. 217,550
67,300 Latin American Equity Fund $698,238
1,250,000 Morgan Grenfell Latin American Trust plc 1,398,458
3,695,037
Mexico - 9.0%
10,300 Acer Computec Latino America (144A) -
ADR (d) * 30,385
110,601 Cemex SA de CV 413,682
16,480 Cemex SA de CV - Class B 72,649
67,000 Consorcio ARA SA de CV * 214,060
33,880 Corporacion Interamericana de Entretenimiento
SA * 98,061
4,517 Corporacion Interamericana de Entretenimiento
SA - Class L * 10,560
26,600 Cydsa SA 43,824
98,000 E.C.E. SA 92,513
20,000 Emerging Mexico Fund, Inc. * 158,750
198,000 Empaques Ponderosa SA * 123,433
32,000 Empresas ICA Sociedad Controladora SA de CV -
ADR 302,000
10,600 Fomento Economico Mexicano SA
de CV - ADR 333,900
66,000 G. Accion SA de CV - Series B *
47,757 70,000 Grupo Casa Autrey SA de CV 45,976
214,000 Grupo Corvi (144A) SA (d) 60,748
183,000 Grupo Financiero Banamex Accival SA
de CV * 352,432
292,845 Grupo Financiero Banorte - Series B * 318,175
17,000 Grupo Industrial Durango SA - Class A * 75,509
64,000 Grupo Posadas SA - "L" Shares * 38,330
6,100 Grupo Posadas SA - GDR * 73,856
216,428 Grupo Posadas SA - Series A * 131,047
12,600 Grupo Televisa SA - GDR * 474,075
6,000 Grupo Televisa SA - Series CPO * 113,214
39,400 Grupo Tribasa SA - ADR * 204,388
74,000 Grupo Tribasa SA de CV * 191,940
94,000 Ingenieros Civiles Asociados 151,312
127,000 Mexico Fund 1,857,375
118,000 Sistema Argos SA - Series B 104,299
39,000 Vitro S.A. 85,094
6,219,344
Peru - 0.5%
17,600 Banco Wiese 15,455
8,200 Banco Wiese - Sponsored ADR 28,188
10,642 Compania de Minas Buenaventura SA 59,404
26,812 CPT Telefonica del Peru SA 55,211
1,600 CPT Telefonica del Peru SA - ADR 32,700
113,449 Enrique Ferreyros SA * 152,907
1,577 Minas Buenaventura - Sponsored ADR 20,698
364,563
Venezuela - 0.7%
42,500 Bancaracas Mercados Capital - Class A 28,449
6,584 Ceramicas Carabobo - ADR "B" * 13,697
3,000 Compania Anonima Nacional Telefonos de
Venezuela - ADR * 75,000
443,583 Electricidad de Caracas 200,425
14,832 Fondo de Valores S.A.C.A. - GDR * 108,067
4,667 International Briquettes Holding, Inc. * 44,337
153 Siderurgica Venazolana Sivensa SACA (144A) -
ADR (d) 1,159
43,716 Siderurgica Venezolana Sivensa - Class A 3,836
2,867 Sudamtex de Venezuela (144A) - Sponsored
ADR (d) * 7,168
547,445 Venezolana Pulpa y Papel - B Shares $20,302
10,920 Venezolana Pulpa y Papel - GDR 3,850
506,290
Total Latin America (Cost $21,250,319) 17,225,369
Asia - 18.4%
China - 1.6%
218,000 Beijing Datang Power Generation Co. Ltd. 61,196
35,000 China Fund, Inc. 315,000
102,500 Greater China Fund, Inc. 685,468
3,600 Huaneng Power International, Inc. - ADR * 48,375
1,110,039
Hong Kong - 2.1%
536,000 Anhui Expressway Co. Ltd. - Class H 53,959
214,000 Giordano International Ltd. 43,363
351,000 Guangdong Kelon Electric Holding - Class H 276,339
186,000 GZI Transportation Ltd. * 42,010
46,400 Johnson Electric Holdings Ltd. * 171,872
396,875 Lung Kee (Bermuda) Holdings Ltd. 77,858
1,785,848 Moulin International Hldgs, Ltd. 177,476
3,500 Peak International Ltd. * 48,125
153,000 Road King Infrastructure Ltd. 120,455
530,000 Shenzhen Expressway Co. Ltd. 97,818
566,000 Sinocan Holdings Ltd. 22,645
416,000 United Pacific Industries Ltd. 75,704
298,000 Vanda Systems & Communication Holdings Ltd. 53,845
96,000 Varitronix International Ltd. 192,047
1,453,516
Indonesia - 1.4%
650,000 EFM Edinburgh Java Trust plc * 75,976
13,000 Gulf Indonesia Resources Ltd. * 149,500
130,500 PT Astra International Inc. 7,821
235,000 PT Bakrie & Brothers 4,024
102,500 PT Charoen Pokphand Indonesia 1,755
224,000PT Dharmala Sakti Sejah-for Rg * 1,534
201,500 PT Hanjaya Mandala Sampoerna 27,948
607,200PT Indah Kiat Pulp & Paper Corp. 117,489
483,880 PT Indorama Stnthetics 38,114
3,700PT Indosat - ADR 41,163
1,035,720 PT Mulia Industrindo 17,735
716,500 PT Pabrik Kertas Tjiwi Kim - Series F 90,789
241,500 PT Pakuwon Jati 827
136,800 PT Petrosea Tbk * 18,974
436,000 PT Putra Surya Multidana * 2,240
153,000 PT Ramayana Lestari Sentosa 12,051
542,500 PT Telekomunikasi Indonesia 155,133
34,500 PT Telekomunikasi Indonesia - ADR 200,531
963,604
Korea - 2.8%
3,400 Dae Duck Electronics Co. 198,540
4,496Dongah Tire Industry Co. * 121,425
8,970 Hyundai Heavy Industries 189,876
1,715 Kookmin Bank 6,384
8,000 Korea Fund, Inc. * 51,000
747 Korea Mobile Telecommunications Corp. 338,386
4,900 Medison Co. Ltd. 43,277
33,964 Mirae Co. * 56,524
6,680 Pohang Iron And Steel Co. Ltd. 223,239
7,300 Pusan Steel Pipe Corp. 29,839
5,323 Samsung Electron Devices Co. Ltd. $145,703
10,605 Samsung Electronics Co. 328,983
940 Samsung Fire & Marine Insurance 157,124
1,890,300
Malaysia - 1.3%
71,000 IJM Corp. Berhad 18,853
104,000 Jaya Tiasa Holdinhs Berhad 129,294
113,000 Malakoff Berhad 208,678
188,000 Malaysian International Shipping Berhad 274,569
39,000 Malaysian Pacific Industries Berhad 46,132
20,000 MNI Holdings Berhad 19,409
25,250 Perlis Plantations Berhad 21,943
213,000 PPB Oil Palms Berhad 138,829
28,000 Sime UEP Properties Berhad 16,087
873,794
Philippines - 1.3%
326,040 Ayala Land, Inc. * 94,277
342,100 Belle Corporation * 8,738
9,580 Benpres Holdings Corp. - GDR * 28,945
14,300 Benpres Holdings Corp. - Sponsored GDR * 39,325
344,000 Cosmos Bottling Corp. 38,959
1,121,000Digital Telecom Philippines, Inc. * 35,116
36,900 Equitable Banking Corp. 51,571
546,700 Filinvest Land, Inc. * 23,185
61,100 First Philippine Fund, Inc. * 351,325
8,127 First Philippine Holdings Corp. * 5,483
301,875 Fortune Cement Corp. * 16,003
510,740 Music Corp. * 45,536
830,000 Philex Mining Corp. - Class B * 15,000
1,152 Philippine Long Distance Telephone - ADR * 25,848
5,000 Philippine Long Distance Telephone Co. -
ADR 112,187
1,245,000 PICOP Resources, Inc. * 15,600
907,098
Singapore - 0.2%
8,400 Creative Technology Ltd. * 103,950
9,000GP Batteries International Ltd. * 16,417
144,000 Roly International Holdings 12,960
19,500Venture Manufacturing (Singapore) Ltd. 36,956
170,283
Taiwan - 4.3%
158,333 Compal Electronics, Inc. * 426,357
83,000 Hon Hai Precision Industry * 420,424
201,690 Nan Ya Plastics Corp. * 273,609
60,000ROC Taiwan Fund 405,000
4,820 Siliconware Precision - GDR * 38,559
3,048 Siliconware Precision Industries Co. - GDR * 24,384
3,900 Synnex Technology International Corp. - GDR* 66,788
37,800 Taiwan Equity Fund, Inc. * 352,013
15,000 Taiwan Fund, Inc. 201,563
80,000 Taiwan Investment Trust plc * 98,852
11,600 Taiwan Semiconductor * 23,976
7,300 Taiwan Semiconductor Manufacturing Co. Ltd.-
ADR * 123,188
174,029 United Microelectronics Corp., Ltd. * 200,115
177,476 Yageo Corp. * 294,493
2,949,321
Thailand - 1.2%
13,500 Alucon Public Co. Ltd. 23,353
45,500 Bangkok Bank Public Co. Ltd. 56,066
38,000 Bank of Asia, The * $8,284
255,858 First Pacific Land, Ltd. 8,488
50,900 Hana Microelectronics Public Co., Ltd. * 129,059
47,200 K.R. Precision Public Co., Ltd. * 31,318
20,600 KCE Electronics Public Co. Ltd. * 78,103
117,900 MDX Co. Ltd. * 6,426
73,100 Precious Shipping Ltd. * 35,944
12,200 PTT Exploration & Production Public Co. Ltd. * 92,512
3,400 Raimon Land Co. Ltd. * 64
1,916,000 Ruam Pattana Fund II * 167,991
61,000 Saha-Union Corp. Ltd. * 37,222
231,600 Shinawatra Satellite Public Co., Ltd. * 71,346
36,300 Siam Syntech Construction Public Co. Ltd. * 430
29,080 Siliconware Precision Industries Co. * 42,243
37,700 TelecomAsia Corp. * 8,398
29,700 Thai Farmers Bank Public Co. Ltd. * 21,466
190,100 Thai Telephone & Communication * 23,875
22,300 Thai-German Ceramic Industry Co., Ltd. * $1,426
11,000 The Thai Farmers Bank, Ltd. 9,710
853,724
Asian Region - 2.2%
152,800 Asia Tigers Fund, Inc., The * 974,100
1,025,000 Edinburgh New Tiger Trust 213,943
240,000 Govett Asian Smaller Companies Fund 272,496
12,200 Southeast Asia Frontier Fund * 79,300
1,539,839
Total Asia (Cost $23,676,516) 12,711,518
Africa - 4.5%
Botswana - 0.1%
39,000 Sechaba Investment Trust 51,465
South Africa - 4.4%
6,100 Anglo American Corp. of South Africa Ltd. 206,955
25,072 Barlow Ltd. 132,909
6,800 Billiton plc - ADR 15,300
129,600 C.G. Sugar Ltd. 162,687
110,442 CorpGro Ltd. 124,587
41,900 Engen Ltd. 116,567
6,166 Liberty Life Association of Africa 120,914
25,000 New South Africa Fund, Inc. 334,375
720,000 Old South Africa Trust 1,364,543
11,942 Sasol Ltd. 69,586
9,209 South African Breweries Ltd. 190,585
146,200 Sun International (South Africa) Ltd. 49,601
47,183 Super Group Ltd. 138,468
3,027,077
Zimbabwe - 0.0% ++
200,000 Trans Zambezi Industries Ltd. - GDR 50,000
Total Africa (Cost $3,809,525) 3,128,542
India Sub-Continent - 5.1%
India - 4.6%
35,100 Bharat Heavy Electricals Ltd. 208,277
23,000 Bharat Petroleum Corp. Ltd. * 190,715
9,300 BSES, Ltd. (144A) - GDR (d) 93,930
12,500 Cipla Ltd. 204,196
27,840 Gujarat Ambuja Cements GDR $139,200
31,600 Hindustan Petroleum Corp. Ltd. 291,721
19,920 Hindalco Industries Ltd. - Sponsored GDR * 277,884
2,000 Housing Development Finance Corp. Ltd. 141,513
425,000 India Fund, The - Class B * 549,990
9,600 Indian Hotels Co., Ltd. GDR (Reg S) 74,400
1,900 Industrial Credit & Investment Corp.
of India - GDR 17,361
12,000 Industrial Credit & Investment Corp.
of India Ltd. (144A) GDR (d) 120,300
8,020 Larsen & Toubro Ltd. GDR 74,988
2,600Larsen & Toubro Ltd. (144A) GDR (d) * 28,138
5,800 Mahamagar Telephone Nigam Ltd. GDR* 60,755
13,000 NIIT Ltd. 436,560
20,356 Tata Engineering & Locomotive Ltd. GDR * 59,541
10,500 Videsh Sanchar Nigam Ltd. GDR 112,350
13,500Videsh Sanchar Nigam Ltd. (144A) GDR (d) * 144,450
3,226,269
Pakistan - 0.4%
49,795 Engro Chemicals Pakistan Ltd. 53,491
39,40 Hub Power Co. Ltd. 10,987
9,100 Hub Power Co. Ltd. - Sponsored GDR 68,250
41,666 Pakistan State Oil Co. Ltd. 66,867
100 Pakistan Telecommunications Corp. GDR 3,481
183,280 Sui Northern Gas Pipelines * 34,803
237,879
Sri Lanka - 0.1%
4,682 Aitken Spence Hotels Ltd. 6,806
6,264 Development Financial Corp. of Ceylon 12,940
15,221 National Development Bank 29,114
48,860
Total India Sub-Continent
(Cost $5,494,535) 3,513,008
Europe and Middle East - 17.7%
Croatia - 0.1%
6,800 Pliva d.d. - GDR 108,346
Czech Republic - 0.9%
4,450 CKD Praha Holding AS * 111,721
667 Deza Valasske Mezirici AS 28,072
5,685 Sporitelni Privatizacni Cesky 68,488
10,486 Sporitelni Vynosovy Investic 73,256
29,756 Zivnobanka - Investicni Fond 373,980
655,517
Egypt - 0.2%
1,800 Egypt Pharmaceuticals 115,327
500 Heliopolis Housing 50,110
165,437
Greece - 1.7%
1,910 Alpha Credit Bank 154,927
4,333 Attica Enterprises SA 62,555
6,290 General Construction SA 31,855
40,500 Greek Progress Fund S.A. 464,828
7,310 Hellenic Telecommunications Organization SA 187,520
1,149 National Bank of Greece SA 147,328
1,680 Sidenor SA 56,354
700 Titan Cement Co. SA 45,822
1,151,189
Hungary - 0.8%
2,233 BorsodChem Rt. $65,301
2,014 EGIS Rt. 70,916
12,730 Mol Magyar Olay - Es Gazi (Ordinary Shares) 343,456
790 OTP Rt. 38,835
518,508
Israel - 1.6%
45,000 Bank Hapoalim Ltd. 136,181
3,720 ECI Telecommunications Ltd. 140,895
1,890 Elite Industries Ltd. * 61,112
300,000 Israel Fund (The) plc * 294,000
11,600 Koor Industries Ltd. - ADR 271,150
3,300 NICE-Systems Ltd. - ADR * 123,750
2,100 Tadiran Ltd. - Sponsored ADR 69,825
1,096,913
Lebanon - 0.1%
6,400 Lebanon Holdings * 46,400
Lithuania - 0.0% ++
1,500 Birzai Milk - GDR * 17,507
Poland - 1.5%
4,500 Bank Handlowy W. Warszawie 85,950
5,968 Bank Ochrony Srodowiska SA 68,509
8,393 Exbud SA * 101,164
71,860 Flemings Poland Funds Ltd * 556,915
14,365 Mostostal Gdansk SA * 58,540
12,300 Softbank SA - GDR * 165,435
4,600 Wielkopolski Bank Kredytowy SA 35,644
1,072,157
Portugal - 0.6%
19,800 Portugal Fund, Inc. 398,475
Romania - 0.2%
1,900 Banca Turco Romana - GDR 22,610
108,120 Rolast SA * 22,394
64,310 Terapia SA * 113,221
158,225
Russia - 4.8%
150,000 Fleming Russia Securities Fund * 1,256,250
9,700 Gazprom (144A) - ADR (d) * 107,428
12,225 Global Telesystems Group, Inc. (b) (c) 536,372
8,300 Irkutskenergo - ADR * 40,436
12,100 Lukoil Oil Co. - ADR * 399,489
36,300 Mosenergo - ADR * 180,636
22,500 Mosenergo - RDC (144A) - ADR (c) (d) * 115,313
350 New Century Fund XI (c) 216,034
5,780 Rokiskio Suris * 28,900
1,108,000 Unified Energy (EES Rossii) 142,931
20,900 Unified Energy Systems - GDR * 275,443
3,299,232
Slovakia - 0.1%
324 Slovakofarma AS 31,340
Slovenia - 0.0%
800 SKB Banka (144A) - GDR (d) 9,160
Turkey - 1.0%
6,113,422 Akbank T.A.S. $197,488
1,228,000 Aksigorta 79,570
1,580,000 Dogan Sirketler Grubu Holding AS 96,443
281,750 Enka Holding Yatirim AS 148,167
704,000 Haci Omer Sabanci Holding AS 43,633
440,000 Pimas Plastik Insaat AS 32,642
837,666 Turkiye Garanti Bankasi AS * 38,545
16,000 Usas Ucak Servisi AS 37,863
674,351
United Kingdom - 0.1%
52,989 Billiton plc 105,292
European Region - 4.0%
320,000 Baring Emerging Europe Trust * 516,800
1,400,000 Central European Growth Fund * 1,274,058
20,000 East Europe Development - PTG * 554,996
12,690 Julius Meinl International AG 422,833
2,768,687
Total Europe and Middle East
(Cost $14,671,632) 12,276,736
Total Common Stocks
(Cost $68,902,527) 48,855,173
General Emerging Markets - 18.9%
153,888 Everest Capital Frontier Ltd. LP (b) 4,019,890
2,559 Explorador Fund, L.P. (b) 2,359,608
200,000 Foreign & Colonial Emerging Markets plc* 259,654
591,212 Investable Emerging Markets Country
Fund LP (b) (c) ** 6,148,604
2,400 Morgan Stanley Africa Investment Fund 28,500
6,300 Morgan Stanley Emerging Markets Fund 59,456
81,175 Nelson Gold Corp. Ltd. * 13,809
50,000Templeton Emerging Markets Inv Trust plc 83,907
Total General Emerging Markets
(Cost $14,270,171) 12,973,428
Preferred Stocks - 4.0%
Brazil - 4.0%
2,470,000 Cia Energetica Brasilia 201,188
6,241,227 Cia Energetica de Minas Gerais 195,359
89,000,000Cia Energetica do Ceara - Coelce Series A 242,413
278,812 Cia Riograndense Telecom* 304,969
600,000 Cia Tecidos Norte de Mina 90,791
9,793,103 Cosigua-Siderur Guanabara 135,145
319,000 Empresa Brasileira de Compressores SA 99,273
514,000 Iven SA Preferred * 257,514
102,800 Marcopolo SA Preferred 18,222
3,444,591 Metalurgica Gerdau SA 110,144
2,596,000 Patroleo Brasileiro SA - Petrobras 481,489
216,000 Sadia Concordia SA Industria e Comercio 138,210
1,560,000 Telec do Rio de Janeiro SA 118,163
401,714 Telecommunicacoes Sao Paulo 95,522
1,000,000Telecomunicacoes Brasileiras SA Telebras 110,200
1,560,000 Telerj Celular SA - Series B * 91,725
941,714Telesp Celular SA - Series B * 78,171
Total Preferred Stocks (Cost $3,462,517) 2,768,498
Options - 0.1%
1,880,000 Brazilian Real Put expiring 12/14/98
and 12/30/98, price $1.42 (Cost $41,880) $47,820
Rights - 0.0% ++
1,910 Alpha Credit Bank 17,200
14,070 Telec Do Rio 0
Total Rights (Cost $0) 17,200
Warrants - 0.1%
68,420 Belle Corp. expiring 12/31/00 (Philippines) 95
10,000 GP Batteries International Warrants
expiring 11/15/00 (Singapore) 8,800
7,600 GZI Transport Ltd. expiring 1/29/99
(Hong Kong) 20
250,000 Morgan Grenfell Latin American
expiring 6/30/10 (Latin America) * 91,839
58,506 Moulin International Holdings Ltd.
expiring 11/14/97 (Hong Kong) 438
24,915 PT Bank Int'l Indonesia expiring 1/17/00
(Indonesia) 116
20,080 PT Indah Kiat Pulp & Paper expiring 7/11/02
(Indonesia) 2,378
1,225 Thai Farmers Bank expiring 9/15/02
(Thailand)
73 Total Warrants (Cost $108,728) 103,759
Principal
Amount (a) Convertible Bonds - 0.0% ++
$23,000 Metropolitan Bank, 2.750% due 9/10/00
(Europe) 24,897
270 Nirefs SA, 6.825% due 12/6/00 (Greece) * 23
Total Convertible Bonds (Cost $30,206) 24,920
Total Long-Term Investments
(Cost $86,816,029) 64,790,798
Short-Term Investments - 10.7%
4,339,341 Repurchase Agreement, 5.200%, dated
6/30/98,
due 7/1/98 with Investors Bank & Trust Company - proceeds
$4,339,968 (collateralized by $4,429,928 GNMA ARM 6.875%
due 01/20/26 - market value $4,556,926) 4,339,341
3,118,543 Bank of Boston Euro-dollar, 6.580%
maturing 10/3/98 (e) 3,118,543
Total Short-Term Investments
(Cost $7,457,884) 7,457,884
Total Investments (Cost $94,273,913) 72,248,682
Liabilities in Excess
of Other Assets - (4.3%) (3,548,568)
Net Assets $68,700,114
+ See Note 2 to the Financial Statements.
++ Round to less than 0.1%.
* Non-income producing security.
** Deemed to be an investment in an affiliate.
ADR American Depositary Receipt
ARM Adjustable Rate Mortgage
GNMA Government National Mortgage Association
GDR Global Depository Receipt
GDS Global Depository Shares
(a) Face amount in U.S. dollars unless
otherwise noted. (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.
(d) Security exempt from registration under Rule 144A of the
Security Act of 1933. These securities may be resold in
transactions exempt from registration, normally to
qualified buyers. At June 30, 1998, these securities were
valued at $902,415 or 1.3% of net assets.
(e) Investment of cash collateral received for securities on loan at
June 30, 1998.
See accompanying Notes to Financial Statements.
Policy Considerations
The Fund is designed as a core vehicle for that portion of Members' assets
committed to US 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.
Investment Performance for
the Periods Ended June 30, 1998
Average Annual
Total Return (Net of Fees)
Since
Trailing Inception
1 Year 5/31/94
TIFF U.S. Equity Fund 28.4 26.0
Wilshire 5000 28.9 25.8
Performance Evaluation
Since inception, the Fund has generated an average annual return of 26.0%,
outperforming its benchmark by a slight margin (20 bp annualized) and the
average domestic equity fund (as reported by Lipper) by a much larger one (470
bp annualized). Two powerful trends overwhelmed the managers' efforts this
quarter: the very largest US stocks clobbered all other issues, and the most
expensive (high P/E) stocks became even more expensive, relatively. Indeed, in
June the top quintile of stocks ranked by P/E outperformed the bottom quintile
by the largest margin (700 basis points) observed since May 1983. The Fund was
(and remains) underweighted in both very large and very high P/E stocks.
TIFF U.S. Equity Fund / Schedule of Investments June 30, 1998 (unaudited)
Long-Term Investments - 89.6%
Common Stocks - 86.8%
Aerospace - 1.2%
61,500 AAR Corp. $1,818,094
9,500 Aeroquip-Vickers, Inc. 554,563
15,000 Litton Industries, Inc. * 885,000
3,400 Lockheed Martin Corp. 359,975
3,617,632
Agriculture/Food - 1.3%
60,400 Archer-Daniels-Midland Co. 1,170,250
750,000 Eastern Equities Corp. Ltd. 210,519
15,000 Eskimo Pie Corp. 189,375
96,600 First Brands Corp. 2,475,375
4,045,519
Airlines - 1.0%
37,800 AMR Corp. * 3,146,850
Banks - 6.5%
31,200 Banc One Corp. 1,741,350
9,790 CCB Financial Corp. 1,040,188
88,800 Chase Manhattan Corp. 6,704,400
36,600 First Union Corp. (NC) 2,131,950
41,483 HUBCO, Inc. 1,485,610
12,834 Mercantile Bancorporation 646,513
64,300 NationsBank Corp. 4,918,950
33,000 Six Rivers National Bank - Eureka * 544,500
50,000 Vermont Financial Services Corp. 1,371,875
20,585,336
Beverages - 1.8%
41,400 Coca-Cola Co. 3,539,700
168,400 Pepsi-Cola Puerto Rico Bottling Co. - Class B * 1,263,000
22,400 PepsiCo, Inc. 922,600
5,725,300
Chemicals - 4.4%
104,600 Albemarle Corp. 2,307,738
26,200 Dow Chemical Co. 2,533,213
370,800 EcoScience Corp. * 475,069
13,200 FMC Corp. * 900,075
90,400 McWhorter Technologies, Inc. * 2,389,950
27,200 PPG Industries, Inc. * 1,892,100
30,000 Rogers Corp. * 990,000
58,800 Scotts Co. - Class A * 2,190,300
13,678,445
Computer Software - 4.6%
96,000 BroadVision, Inc. * 2,292,000
22,500 Computer Associates International, Inc. 1,250,156
94,000 Conductus, Inc. * 352,500
55,100 GTech Holdings Corp. * 1,856,181
103,000 Metrowerks, Inc. * 570,836
33,600 Microsoft Corp. 3,641,400
43,800 Quantum Corp. 908,850
66,800 Ryder System, Inc. 2,108,375
26,600 Symantec Corp. * 694,925
29,000 Unisys Corp.* 819,250
14,494,473
Computers - 3.0%
93,000 Bull Run Corp. * $453,375
14,400 Gateway 2000, Inc. * 729,000
20,500 Hewlett-Packard Co. 1,227,438
51,700 International Business Machines Corp. 5,935,806
16,700 Lexmark International Group, Inc. - Class A * 1,018,700
9,364,319
Construction - 2.0%
178,600 Johns Manville Corp. 2,690,163
99,700 Layne, Inc. * 1,233,788
125,000 Walter Industries, Inc. * 2,367,188
6,291,139
Containers - 0.4%
14,000 Owens-Illinois, Inc. * 626,500
12,600 Tenneco, Inc. 479,588
1,106,088
Cosmetics - 1.7%
59,700 Procter & Gamble Co. 5,436,431
Electrical Utilities - 0.7%
19,600 Baltimore Gas and Electric Co. 608,825
39,100 GPU, Inc. 1,478,469
2,087,294
Electronics - 3.9%
66,400 Amtech Corp. * 315,400
64,900 Arrow Electronics, Inc. * 1,411,575
62,000 Checkpoint Systems, Inc. * 875,750
46,900 Philips Electronics NV - ADR 3,986,500
50,600 Public Service Enterprise Group, Inc. 1,742,538
26,700 SCI Systems, Inc. * 1,004,588
71,600 Sensormatic Electronics Corp. 1,002,400
616,150 Strategic Diagnostic, Inc. * 1,848,450
12,187,201
Financial - 3.4%
67,200 Bear Stearns Companies, Inc. 3,822,000
6,600 Morgan Stanley, Dean Witter, Discover & Co. 603,075
103,000 San Juan Basin Royalty Trust 778,938
60,900 SLM Holding Corp. 2,984,100
42,900 Travelers Group, Inc. 2,600,813
10,788,926
Foods - 1.6%
35,400 Dole Food Co., Inc. 1,758,938
16,800 Kimberly-Clark Corp. 770,700
4,500 Ralston Purina Group 525,656
19,100 Smithfield Foods, Inc. * 582,550
10,000 Suiza Foods Corp. * 596,875
15,900 Supervalu, Inc. 705,563
4,940,282
Health Care - 3.0%
233,000 Embrex, Inc. * 1,441,688
97,800 Integrated Health Services 3,667,500
247,200 Pharmchem Laboratories * 618,000
53,500 Protocol Systems, Inc. * 461,438
9,000 ReSound Corp. * 59,063
30,000 Universal Health Services, Inc. - Class B * 1,751,250
20,100 Wellpoint Health Networks, Inc. * 1,487,400
9,486,339
Hotels/Restaurants - 0.9%
47,766 Morrison Health Care, Inc. $907,554
80,000 Ruby Tuesday, Inc. 1,240,000
80,600 Ryan's Family Steak House, Inc. * 826,150
2,973,704
Insurance - 4.5%
53,200 Allstate Corp. 4,871,125
15,300 Cigna Corp. 1,055,700
157,600 CNA Surety Corp. * 2,324,600
22,500 Conseco, Inc. 1,051,875
17,100 Equitable Companies, Inc. 1,281,431
19,000 Loews Corp. 1,655,375
59,700 Old Republic International Corp. 1,749,956
13,990,062
Leisure - 0.4%
26,700 Brunswick Corp. 660,825
18,500 International Game Technology 448,625
15,000 Rawlings Sporting Goods Co. * 200,625
1,310,075
Metals - 0.9%
51,400 Asarco, Inc. 1,143,650
60,000 Stillwater Mining Co. * 1,627,500
2,771,150
Motor Vehicles - 0.6%
12,100 General Motors Corp. 808,431
127,700 Treadco, Inc. 1,165,263
1,973,694
Multimedia - 0.9%
30,800 General Instrument Corp. * 837,375
67,000 Gray Communications Systems, Inc. - Class B 2,068,625
2,906,000
Oil/Gas - 5.1%
26,250 Columbia Gas System 1,460,156
44,500 Ensco International Inc. 773,188
118,100 Exxon Corp. 8,422,006
42,100 Helmerich & Payne, Inc. 936,725
7,500 Mobil Corp. 574,688
23,100 Phillips Petroleum Co. 1,113,131
82,100 Valero Energy Corp 2,729,825
16,009,719
Paper/Forest Products - 2.1%
77,600 Caraustar Industries, Inc. 2,240,700
45,100 Fort James Corp. 2,006,950
143,100 Playtex Products, Inc. * 2,280,656
6,528,306
Pharmaceutical - 5.8%
16,000 Abbott Laboratories 654,000
65,000 Amgen, Inc. * 4,249,375
42,300 Bristol-Myers Squibb Co. 4,861,856
19,100 Genzyme Corp. * 488,244
9,400 Merck & Company, Inc. 1,257,250
50,800 Owens & Minor, Inc. 508,000
32,000 Pfizer, Inc. 3,478,000
28,600 Schering-Plough Corp. 2,620,475
18,117,200
Producer Goods - 5.7%
95,220 Albany International Corp. $2,279,329
25,000 C&D Technologies, Inc. 1,450,000
77,200 Caterpillar, Inc. 4,081,950
113,300 Daniel Industries 2,152,700
15,800 Deere & Co. 835,425
43,400 General Electric Co. 3,949,400
84,400 Scotsman Industries, Inc. 2,342,100
40,000 Valmont Industries, Inc. 798,748
17,889,652
Publishing - 1.0%
11,300 Gannett Company, Inc. 803,006
167,000 PRIMEDIA, Inc. * 2,264,913
3,067,919
Railroad - 2.4%
110,300 Canadian Pacific Ltd. 3,129,763
11,800 GATX Corp. 517,725
71,900 Westinghouse Air Brake Co. 1,896,363
90,000 Wisconsin Central Transportation Corp. * 1,968,750
7,512,601
Retail (Other) - 3.8%
75,125 Consolidated Stores Corp. * 2,723,281
32,200 Dayton Hudson Corp. 1,561,700
125,000 Geerlings & Wade, Inc. * 562,500
42,400 Ross Stores, Inc. 1,823,200
40,500 Sears, Roebuck and Company 2,473,031
22,800 Shopko Stores, Inc. * 775,200
34,000 Xtra Corp. 2,057,000
11,975,912
Services - 1.4%
800,000 DB Group Ltd. * 1,060,392
115,700 Exponent, Inc. * 983,450
36,500 Hilb, Rogal & Hamilton Co. 570,313
37,950 ITT Educational Services, Inc. * 1,223,888
15,000 Volt Information Sciences, Inc. * 406,875
4,244,918
Steel - 0.2%
30,844 Allegheny Teledyne, Inc. 705,557
Telecommunications - 4.7%
34,400 Ameritech Corp. 1,543,700
114,500 AT& T Corp. 6,540,813
32,400 Bell Atlantic Corp. 1,478,250
32,900 GTE Corp. 1,830,063
88,000 SBC Communications, Inc. 3,520,000
14,912,826
Thrifts - 2.4%
26,000 Carolina First Corp. 659,750
52,920 Charter One Financial, Inc. 1,782,743
31,395 Downey Financial Corp. 1,026,224
10,000 First Savings Bank of Washington Bancorp, Inc. 252,500
8,000 Maryland Federal Bancorp, Inc. 317,000
42,000 Peoples Bank of Bridgeport, Connecticut 1,454,250
41,500 Riverview Bancorp, Inc. 689,938
31,900 Washington Mutual, Inc. 1,385,656
7,568,061
Transportation - 3.5%
35,250 Air Express International Corp. $942,938
60,000 Airborne Freight Corp. 2,096,250
41,800 Circle International Group, Inc. 1,170,400
40,000 CNF Transportation, Inc. 1,700,000
76,900 Fritz Companies, Inc. * 1,028,538
97,200 Kirby Corp. * 2,454,300
40,000 Pittston Burlington Group, Inc. 622,500
30,900 Pittston Services Group 1,139,424
11,154,350
Total Common Stocks
(Cost $222,653,260) 272,593,280
Preferred Stock - 0.1%
36,875 Norian Corp. (144A) (a) (b) (Cost $206,500) 206,500
Limited Partnership - 2.7%
5,932 Gotham Partners (b) (c) (Cost $5,925,000) 8,643,783
Total Long-Term Investments
(Cost $228,784,760) 281,443,563
Principal
Amount Short-Term Investments - 10.8%
U.S. Treasury Security - 0.4%
$1,400,000 U.S. Treasury Bill, 4.868% due 9/17/98 # ++
(Cost $1,384,712) 1,385,044
Repurchase Agreement - 10.4%
32,737,099 Repurchase agreement,5.200%, dated 6/30/98,
due 7/1/98 with Investors Bank & Trust
Company, collateralized by ($16,000,000
FHLMC 6.738% due 12/15/23 - market value
$16,614,837; $15,000,000 FNR 6.156%
due 2/18/28 - market value $15,093,138;
$2,582,407 FNMA ARM, 7.756%,
due 6/21/23 - market value $2,666,329)
(proceeds $32,741,828)
(cost $32,737,099) 32,737,099
Total Short-Term Investments
(Cost $34,121,811) 34,122,143
Total Investments
(Cost $262,906,571) - 100.4% 315,565,706
Liabilities in Excess
of Other Assets - (0.4%) (1,247,457)
Net Assets - 100.0% $314,318,249
Number
of Shares Short Portfolio - (0.1%)
Common Stocks - (0.1%)
Electronics - (0.1%)
18,000 Itron, Inc. * 229,500
2,500 VideoLan Technologies, Inc. * 25
Total Common Stocks (Proceeds $706,629) 229,525
Total Short Portfolio (Proceeds - $706,629)$229,525
* 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 broker as initial margin for
financial futures contracts.
ADR American Depositary Receipt
ARM Adjustable Rate Mortgage
FHLMC Federal Home Loan Mortgage Corporation
FNMA Federal National Mortgage Association
FNR Fannie Mae Remic
(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 June 30, 1998, the aggregate value of
these securities was valued at $206,500 or 0.1% of net
assets.
(b) Security is valued in good faith under procedures
established by the board of directors of the Fund.
(c) Deemed to be a restricted security.
See accompanying Notes to Financial Statements.
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 theeconomy (actual
or expected), as they were during much of 1996. Noting that bonds have
underperformed stocks by a wide margin over the preceding year, we have
encouraged Members to consider shifting some of the gains they had earned from
US stocks into the bond market.
Investment Performance for
the Periods Ended June 30, 1998
Average Annual
Total Return (Net of Fees)
Since
Trailing Inception
1 Year 5/31/94
TIFF Bond Fund 9.9 8.6
Lehman Aggregate 10.5 8.8
Performance Evaluation
The Fund has produced strong absolute returns since inception (39.9% net of
fees) and has outperformed its primary benchmark (the Lehman Aggregate Index) on
a pre-fee basis, but has underperformed the Index net of fees. In the second
quarter, the managers traversed the roiling waters of the US bond market with
barge-like nimbleness, and the Fund's return precisely matched its benchmark's
(both up 2.3%). The Fund's expense ratio is materially lower than the industry
norm for bond funds. Although their solid results are belied by the Fund's net
returns, all three of its managers have outperformed their benchmarks since
inception. (Custodial and other non-manager costs explain why the Fund itself
lags its benchmark.) All three managers receive performance-based fees, so their
income from the Fund cannot rise materially unless their relative performance
improves also.
TIFF Bond Fund / Schedule of Investments June 30, 1998 (unaudited)
Long-Term Investments - 96.3%
Bonds - 95.6%
Asset & Mortgage-Backed Securities - 10.8%
$550,000 Advanta Mortgage Loan Trust, Ser. 1997-1,
Class B1F, 8.150% due 5/25/27 $573,966
1,000,000 Americredit Auto Receivables Trust, Ser.
1997-C, Class A3, 6.300% due 7/5/03 1,010,940
1,050,000 Amresco Mortgage Loan Trust, Ser. 1997-1,
Class B1F, 7.915% due 3/25/27 1,083,518
1,425,000 Amresco Residential Securities Mtg. Loan,
Ser. 1997-1, Class A8, 7.240% due 3/25/27 1,476,532
400,000 California Infrastructure SCE-1, Ser.
1997-1, Class A6, 6.380% due 9/25/08 406,772
1,300,000 Citibank Credit Card Master Trust, Ser.
1997-2, Class A, 6.550% due 2/15/04 1,329,692
2,000,000 CS First Boston Mtg. Sec Corp., Ser.
1998-C1, Class A1B, 6.480% due 5/17/08 2,030,938
2,000,000 First Union Lehman Brothers Bank of
America, Ser. 1998-C2, Class A2, 6.560%
due 11/18/08 2,048,114
482,285 Ford Credit Auto Owner Trust, Ser. 1996-A,
Class A3, 6.500% due 11/15/99 483,389
815,993 IMC Home Equity Loan, Ser. 1997-4, Class A,
5.840% due 10/20/27 816,758
1,000,000 MBNA Master Credit Card Trust, Ser. 1997-F,
Class A, 6.600% due 11/15/04 1,028,990
700,000 Olympic Auto Receivable Trust, Ser. 1996-C,
Class A4, 6.800% due 3/15/02 709,149
575,000 Olympic Auto Receivable Trust, Ser. 1997-A,
Class A4, 6.625% due 12/15/02 583,861
1,300,000 Premier Auto Trust, Ser. 1997-2, Class A4,
6.250% due 6/6/01 1,309,256
1,160,000 Providian Trust, Ser. 1997-4, Class A,
6.250% due 6/15/07 1,180,694
850,000 Residential Asset Sec. Corp., Ser. 1997-KS1,
Class AI2, 7.070% due 4/25/28 856,928
1,562,000 Saxon Asset Securities Trust, Ser. 1997-1,
Class AF6, 7.325% due 1/25/12 1,624,766
700,000 Saxon Asset Securities Trust, Ser. 1997-3,
Class AF6, 6.730% due 2/25/27 705,797
1,875,000 UCFC Home Equity Loan IO, Ser. 1997-C,
Class A, 8.000% due 9/15/00 299,707
1,125,000 UCFC Home Equity Loan, Ser. 1996-B1,
Class A5, 7.650% due 6/15/20 1,178,551
7,386,805 Union Acceptance Corp. IO Strip, Ser.
1996-C, Class I, 2.750% due 10/8/03 166,203
776,174 Union Acceptance Corp. IO, Ser. 1996-D,
Class I, 3.000% due 1/8/04 20,951
3,454,776 Union Acceptance Corp. IO, Ser. 1997-B,
Class I, 1.850% due 6/8/27 75,169
2,157,044 Union Acceptance Corp., Ser. 1996-A,
Class I, IO due 5/7/99 30,242
Total Asset & Mortgage-Backed Securities
(Cost $20,984,084) 21,030,883
Corporate Obligations - 32.0%
415,000 360 Communications Co., 6.650% due 1/15/08 420,649
650,000 Abitibi-Consolidated, Inc. 7.500% due 4/1/28 674,879
17,100 Alabama Power Co. 7.000% due 3/31/48 432,352
247,369 American Airlines, 9.710% due 1/2/07 272,161
665,000 Amerus Life Holdings, 6.950% due 6/15/05 664,241
1,685,000 Associates Corp NA., 6.000% due 4/15/03 1,682,828
410,000 Bay Apartment Communities, 6.250%
due 1/15/03 406,304
1,200,000 Bear Stearns Co. Inc., 6.750% due 12/15/07 1,237,739
$485,000 Black & Decker (144A), 7.050%
due 7/1/28 (a) $484,976
1,415,000 Cogentrix Energy Inc., 8.100% due 3/15/04 1,483,683
1,565,000 Compania Telecom Chile, 7.625%
due 7/15/06 1,686,874
735,000 Consumers Energy (144A), 6.500%
due 6/15/05 (a) 732,163
825,000 Continental Airlines, 6.541% due 3/15/08 836,781
305,000 Corp. Andina de Fomento, 7.375%
due 7/21/00 (Latin America) 311,410
1,200,000 Corp. Andina de Fomento, 7.250%
due 3/1/07 (Latin America) 1,243,454
385,000 Corp. Andina de Formento, 7.100%
due 2/1/03 (Latin America) 394,895
620,000 Cummins Engine Co., Inc., 5.650% due 3/1/98 488,416
935,000 DQU II Funding, 8.700% due 6/1/16 1,046,806
1,500,000 El Paso Natural Gas Co., 6.750%
due 11/15/03 1,537,329
415,000 Enron Oil & Gas, 6.650% due 4/1/28 415,446
625,000 Enterprise Corp. (144A), 6.950%
due 3/1/04 (a) 636,944
395,000 Federal Express, 7.600% due 7/1/2097 429,771
1,000,000 Federated Dept. Stores, 7.450% due 7/15/17 1,074,989
675,000 First Chicago NBD Inst-B. (144A),
7.750% due 12/1/26 (a) 731,705
1,340,000 First Maryland Bancorp, 7.200% due
7/1/07 1,415,938
1,200,000 First Union Corp., 6.400% due 4/1/08 1,207,609
675,000 Fleet Financial Group 6.375% due
5/15/08 674,564
500,000 Florida Windstorm Underwriting (144A),
6.500% due 8/25/02 (a) 507,173
1,000,000 Ford Motor Credit Co., 6.500% due 2/28/02 1,013,576
405,000 Fortune Brands, 6.650%, due 7/15/28 404,711
500,000 Global Marine, Inc., (144A),
7.125% due 9/1/07 (a) 523,285
685,000 Goldman Sachs Group (144A), MTN,
7.200% due 11/1/06 (a) 726,634
510,000 Gruma SA de CV, 7.625% due 10/15/07
(Mexico) 512,766
830,000 GTE Corp., 6.840% due 4/15/18 836,312
1,000,000GTE Florida, Inc., 6.310% due 12/15/02 1,007,081
1,494,790 Humpuss Funding Corp. (144A), 7.720%
due 12/15/09 (Indonesia) (a) 1,246,994
719 Hyperion Telecom, Inc. Ser. B, 12.875%
due 10/15/07 776,553
1,250,000 IBM Corp., 6.500% due 1/15/28 1,256,549
440,000 IBM Credit Corp., 7.125% due 12/1/96 467,661
997,984 Jasmine Submarine Telecom (144A),
8.483% due 5/30/11 (Thailand) (a) 972,375
165,000 Jet Equipment Trust (144A), 9.710%
due 8/15/13 (a) 206,049
595,000 Kern River Funding Corp. (144A) Ser. B,
6.720% due 9/30/01 (a) 604,992
670,000 Land 'O Lakes Cap Trust I (144A), 7.450%
due 3/15/28 (a) 680,404
1,140,000 Lasmo (USA), Inc. 7.350% due 11/15/27 1,179,325
700,000 Leucadia National Corp., 7.875 %
due 10/15/06 749,900
800,000 Lockheed Martin, 6.850% due 5/15/01 815,831
560,000 Long Island Savings Bank, 6.200% due 4/2/01 560,764
515,000 Meditrust, 7.820% due 9/10/26 535,033
955,000 Morgan Stanley Group, Inc., 8.100%
due 6/24/02 1,021,642
1,425,000 Mutual Life Insurance Co. - NY (144A),
0.000% due 8/15/24 (a) (b) 1,934,502
850,000 Nabisco Inc., 7.550% due 6/15/15 914,665
350,000 National Australia Bank, 6.400% due
12/10/07 (Australia) 352,922
$485,000 National Oilwell, Inc. (144A), 6.875%
due 7/1/05 (a) $486,974
490,000 News America Inc.(144A), due 4/30/28 504,082
920,000 New Plan Realty, 7.680% due 11/2/26 1,003,689
1,000,000 Norfolk Southern Corp., 6.950% due 5/1/02 1,030,220
370,000 Norsk Hydro AS, 6.700% due 1/15/18 (Norway) 373,208
525,000 Northwest Airlines Corp., 7.068%
due 7/2/17 561,188
560,000 Owens Corning, 7.700% due 5/1/08
577,315 395,000 Petroleum Geo-Services ASA, 6.625%
due 3/30/08 (Norway) 400,457
345,000 Petroliam Nasional Berhad (144A), 7.625%
due 10/15/26 (Malaysia) 266,104
150,000 Phillips Petroleum Co., 7.125% due 3/15/28 153,759
470,000 Post Apartment Homes, 6.850% due 3/16/05 485,526
185,000 R&B Falcon Corp. (144A), 6.500%
due 4/15/03 (a) 185,103
850,000 Ras Laffan-Lincs (144A), 7.850%
due 3/18/14 (a) (c) 953,128
560,000 Republic of Colombia, 7.625%
due 2/15/07 (Colombia) 502,431
420,000 Rite Aid Corp., 6.700% due 12/15/01 427,831
600,000 Rodamco NV, 7.300% due 5/15/05
(Netherlands) 639,564
600,000 Rollins Truck, 7.000% due 3/15/01 613,884
900,000 Saga Petroleum, 7.250% due 9/23/27 (Norway) 931,501
675,000 Salomon, Inc., 6.750% due 2/15/03 691,417
590,000 SE Banken (144A), 6.500%
due 12/29/49 (Sweden) (a) 591,180
1,200,000 Sears Roebuck Acceptance, 6.000%
due 3/20/03 1,197,607
415,000 Shopko Stores, 6.500% due 8/15/03 411,266
600,000 Sithe/ Independence Fndg, Ser. A, 9.000%
due 12/30/13 716,147
900,000 SocGen Real Estate LLC (144A), 7.640%
due 12/29/49 (a) 893,976
210,000 SuperValu, Inc., 7.800% due 11/15/02 221,969
270,000 Taubman Realty Group, 7.500% due 6/15/02 281,701
665,000 TE Products Pipeline Co., 6.450% due 1/15/08 664,650
500,000 Tektronix, Inc., 7.500% due 8/1/03 524,652
580,000 Telefonica de Argentina, 9.125%
due 5/7/08 (Argentina) 564,722
460,000 Union Carbide Corp., 6.250% due 6/15/03 458,436
435,000 Union Oil Co. of California, 6.47%, due 5/15/05 459,285
485,000 United Dominion Realty Trust, 7.950%
due 7/12/06 528,864
590,000 Unova, Inc., 6.875% due 3/15/05
597,310 610,000 Western Resources, Inc., 6.875% due 8/1/04 628,626
587,472 YPF Sociedad Anonima, 7.500%
due 10/26/02 (Argentina) 596,596
Total Corporate Obligations
(Cost $61,158,427) 62,556,973
Agency Mortgage-Backed Securities - 33.1%
Federal Home Loan Mortgage Corp
599,651 7.000% due 1/1/11 611,072
1,875,000 Ser. 1577, Class PH, 6.300%, due 3/15/23 1,888,894
3,887,405 7.500% due 12/1/27 3,983,141
Federal National Mortgage Association
1,000,000 MTN, 5.200% due 7/10/98 999,979
725,000 MTN, 5.650% due 3/5/01 724,806
200,000 6.080% due 9/3/03 198,329
725,000 MTN, 5.800% due 2/22/06 729,403
420,465 6.980% due 6/1/07 443,771
650,000 6.420% due 12/1/07 667,547
4,964,904 TBA, 6.000% due 3/1/13 4,918,926
$1,400,000 6.000% due 6/1/13 $1,387,035
1,650,000 Aces IO, Ser. 1997-M8, Class A2,
7.160% due 1/25/22 1,634,642
766,154 7.000% due 3/1/24 778,135
613,132 7.000% due 3/1/24 622,719
1,014,009 9.000% due 3/1/25 1,075,502
4,862,490 6.500% due 4/1/28 4,844,356
1,250,000 6.500% due 5/1/28 1,245,337
2,030,000 6.500% due 5/1/28 2,022,429
2,970,000 6.500% due 6/1/28 2,958,924
2,000,000 6.500% due 6/1/28 1,992,542
Government National Mortgage Association
393,190 7.000% due 1/20/08 404,103
301,777 7.125% due 8/20/17 310,412
337,448 6.875% due 12/20/17 346,983
111,541 7.125% due 9/20/21 114,672
435,552 7.000% due 7/15/23 443,554
1,079,970 ARM, 7.375% due 4/20/24 1,108,580
759,042 7.000% due 5/15/24 772,869
366,578 7.000% due 5/15/24 373,256
462,708 9.500% due 10/15/24 502,276
127,363 II, 5.000% due 8/20/27 128,354
4,693,698 5.500% due 8/20/27 4,749,184
970,471 5.500% due 12/20/27 979,513
1,394,479 II, 5.000% due 1/20/28 1,393,877
984,598 II, 5.000% due 2/20/28 984,175
5,741,454 II, 5.000% due 3/20/28 5,738,997
990,000 II, 5.000% due 4/20/28 987,380
1,859,353 II, 4.500% due 5/20/28 1,835,620
1,980,002 II, 5.500% due 5/20/28 1,989,760
2,100,648 II, 4.500% due 6/20/28 2,073,798
495,000II, 5.500% due 6/20/28 497,432
5,000,000 TBA, 7.500% due 8/19/28 5,136,328
Total Agency Mortgage-Backed Securities
(Cost $63,861,104) 64,598,612
U.S. Treasury Securities - 19.7%
U.S. Treasury Bond
200,000 8.125% due 5/15/21 260,437
480,000 8.000% due 11/15/21 618,750
4,125,000 6.125% due 11/15/27 4,420,193
U.S. Treasury Note
200,000 7.125% due 10/15/98 201,062
4,200,000 5.500% due 11/15/98 4,201,310
1,585,000 5.625% due 11/30/98 1,586,981
420,000 5.000% due 1/31/99 418,819
1,015,000 6.375% due 5/15/99 1,021,978
100,000 8.875% due 2/15/99 102,031
250,000 6.375% due 7/15/99 252,109
405,000 5.625% due 10/31/99 405,380
540,000 7.500% due 10/31/99 553,331
250,000 7.125% due 2/29/00 256,250
5,860,000 6.750% due 4/30/00 5,982,691
805,000 5.750% due 11/15/00 809,025
1,200,000 5.625% due 11/30/00 1,202,624
570,000 5.500% due 12/31/00 569,644
580,000 5.375% due 2/15/01 578,006
525,000 8.000% due 5/15/01 558,961
2,400,000 6.625% due 6/30/01 2,469,749
945,000 6.375% due 9/30/01 967,444
3,425,000 6.250% due 2/28/02 3,503,131
270,000 6.250% due 2/15/03 277,847
500,000 5.500% due 3/31/03 499,688
810,000 5.750% due 4/30/03 817,846
$200,000 5.500% due 5/31/03 $200,000
145,000 6.875% due 5/15/06 157,053
1,000,000 7.000% due 7/15/06 1,092,500
435,000 6.125% due 8/15/07 452,808
1,250,000 5.625% due 5/15/08 1,267,188
U.S. Treasury Strip
4,070,000 5.222% due 2/15/20 1,184,569
6,350,000 Principle due 11/15/21 1,672,647
Total U.S. Treasury Securities
(Cost $37,460,073) 38,562,052
Total Bonds (Cost $183,463,688) 186,748,520
Number
of Shares Preferred Stocks - 0.7%
20,240 Duke Realty Investments, Inc. 7.990%
due 10/1/12 1,077,780
9,193 Indosuez Holdings S.C.A. Preferred (144A)
10.375% Series (France) (a) 252,659
Total Preferred Stocks (Cost $1,264,808)
1,330,439
Total Long-Term Investments
(Cost $184,728,496) 188,078,959
Short-Term Investments - 6.6%
Principal
Amount U.S. Treasury Securities - 0.0% ++
$25,000 U.S. Treasury Bill, 4.964% due 10/15/98 @ # 24,631
20,000 U.S. Treasury Bill, 4.850% due 10/29/98 @ #
19,674 Total U.S. Treasury Securities
(Cost $44,295) 44,305
Repurchase Agreements - 6.6% 12,969,598
Repurchase agreement, 5.200%,
due 7/1/98,
with Investors Bank & Trust Company,
collateralized by ($10,000000 FHR, 7.000%,
due 2/15/20 - market value $10,206,389;
$3,301,996 FNMA ARM, 7.910%, due 8/7/23
- market value $3,411,815)
(Proceeds $12,971,471)
(Cost $12,969,598) 12,969,598
Total Short-Term Investments
(Cost $13,013,893) 13,013,903
Total Investments - 102.9%
(Cost $197,742,389) 201,092,862
Liabilities in Excess
of Other Assets - (2.9%) (5,732,990)
Net Assets - 100.0% $195,359,872
+ See Note 2 to the Financial Statements.
++ Round to less than 0.1%.
# 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
Security Act of 1933. These securities may be resold in
transactions exempt from registration, normally to
qualified buyers. At June 30, 1998, these securities were
valued at $14,121,402 or 7.2% of net assets.
(b) Security is a step up bond which will pay 11.25% until
maturity starting 8/15/99.
(c) Coupton rate is 7.850% through September 2006, and 8.05%
thereafter.
ARM Adjustable Rate Mortgage
FHR Freddie Mac Remic
FNMA Federal National Mortgage Association
IO Interest-Only Obligation
MTN Medium-Term Note
TBA To Be Announced Security. Security is subject to
delayed delivery.
See accompanying Notes to Financial Statements.
Policy Considerations
As experienced foundation fiduciaries, the cooperative's directors recognize
that many foundations seek to control downward fluctuations in the monetary
value of assets earmarked for spending within 12 months by investing them
exclusively in cash equivalents, either directly or via money market funds.
However, TIFF's studies of 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 regulated
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 six-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 six 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).
Investment Performance for
the Periods Ended June 30, 1998
Average Annual
Total Return (Net of Fees)
Since
Trailing Inception
1 Year 5/31/94
TIFF Short-Term Fund 5.7 5.7
Merrill Lynch 182-Day T-Bill 5.5 5.6
Performance Evaluation
The Fund is performing as planned in the following sense: its aim (admittedly
modest) is to outperform its six-month Treasury Bill benchmark net of fees.
Since its inception in May 1994, the Fund's holdings have outperformed this
benchmark by a healthy margin (about 0.45% per annum), but the very modest
expenses it incurs (about 0.35% per annum) have caused the Fund as a whole to
outperform its benchmark by the narrowest of margins net of fees (25.2%
cumulative return versus 25.1% for the benchmark). Increased assets would permit
the Fund's fixed costs to be spread over a larger asset base, and TIP's
directors remain hopeful that an increasing number of TIP Members will consider
it as a cost-efficient alternative to other cash management vehicles they may be
using. When weighing these alternatives, prospective investors should note that,
over its 49-month life, the Fund has outperformed the average money market
mutual fund tracked by Lipper by 366 basis points. 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.
TIFF Short-Term Fund / Schedule of Investments June 30, 1998 (unaudited)
Asset and Mortgage-Backed Securities - 55.4%
$983,981 Aames Mortgage Trust FRN, Ser. 1998-A,
Class A1A, 5.878% due 3/15/28 $983,282
2,000,000 Advanta Business Corp., Ser. 1998-1,
Class A1, 5.770%, due 12/15/06 2,000,920
1,276,238 Advanta Mortgage Loan Trust FRN,
Ser. 1997-4, Class A8, 5.8263% due 2/25/241,277,399
1,000,000 American Express Master Trust, Ser. 1994-1,
Class A, 7.150% due 8/15/99 1,002,960
1,000,000 Arcadia Auto Receivables Trust, Ser. 1998-A,
Class A2, 5.737% due 7/16/01 1,000,040
670,964 Associates Home Equity Loan Trust,
Ser. 1998-1, Class A1, 6.620% due 1/15/12 671,383
353,612 Beneficial Mortgage Corp. FRN, Ser. 1996-1,
Class A, 5.828% due 4/28/26 353,689
3,000,000 Carco AutoLoan Master Trust, Ser.1998-1,
Class A1, 5.708% due 6/16/03 2,999,175
1,000,000 Case Equipment Loan Trust, Ser. 1998-A,
Class A2, 5.592% due 7/15/01 999,830
669,264 Champion Home Equity Loan Trust,
Ser. 1997-2, Class A1, 6.590% due 11/25/10 669,545
2,000,000 Chase Manhattan Auto Trust, Ser. 1996-C,
Class A3, 5.950% due 11/15/00 2,002,340
617,199 Chase Manhattan Auto Owner Trust,
Ser. 1997-B, Class A2, 6.100% due 1/17/00 618,150
2,829,656 Delta Funding Home Equity Loan Trust,
Ser. 1996-1, Class A3, 7.030% due 2/25/11 2,843,804
2,779,275 Deutsche Financial Capital Securities,
Ser. 1998-I, Class A1, 6.050% due 4/15/28 2,775,774
1,000,000 Discover Card Master Trust I FRN,
Ser. 1994-2, Class A, 6.006% due 10/16/04 1,008,160
208,334 Discover Card Trust, Ser. 1993-A,
Class A, 6.250% due 8/16/00 207,942
807,970 EQCC Home Equity Loan Trust, Ser. 1996-4,
Class A3, 6.260% due 11/15/06 809,755
769,705 EQCC Home Equity Loan Trust FRN,
Ser. 1997-3, Class A10, 5.831% due 11/15/28 770,159
1,000,000 First Chicago Master Trust II FRN, Ser.
1996-R, Class A, 5.726% due 7/15/01 1,000,070
1,135,000 First USA Credit Card Master Trust FRN,
Ser. 1994-4, Class A, 5.995% due 8/15/03 1,143,830
1,000,000 Ford Credit Auto Owner Trust, Ser. 1997-B,
Class A2, 5.950% due 1/15/00 1,001,090
1,000,000 Ford Credit Auto Owner Trust, Ser. 1998-B,
Class A2, 5.800% due 10/15/00 1,000,313
1,676,418 HCF Revolving Home Equity Trust FRN,
Ser. 1996-1, Class A, 5.856% due 7/20/17 1,678,128
896,297 HFC Home Equity Loan FRN, Ser. 1992-2,
Class A2, 6.048% due 10/20/07 896,539
750,000 MBNA Master Credit Card Trust, Ser. 1993-3,
Class A, 5.400% due 9/15/00 747,773
1,000,000 MBNA Master Credit Card Trust FRN,
Ser. 1994-2, Class A, 5.898% due 6/15/01 1,001,430
901,189 Norwest Auto Trust, Ser. 1996-A,
Class A3, 5.900% due 3/15/00 902,000
193,448 Pacific Gas & Electric, Ser. 1997-1,
Class A1, 5.940% due 9/25/00 193,473
1,500,000 Peoples Bank CC Master Trust FRN, Ser.
1996-1, Class A, 5.8063% due 11/15/04 1,502,865
1,134,325 Premier Auto Trust, Ser. 1996-4,
Class A3, 6.200% due 11/6/00 1,136,855
820,240 Residential Funding Mtg. Securities FRN,
Ser. 1998-HS1, Class A, 5.836% due 6/20/23 818,574
1,000,000 Signet Credit Card Master Trust, Ser. 1993-1,
Class A, 5.200% due 2/15/02 998,840
1,000,000 Standard Credit Card Master Trust,
Ser.1991-3, Class A, 8.875% due 9/7/99. $1,008,810
1,000,000 Standard Credit Card Trust, Ser. 1991-6,
Class A, 7.875% due 1/7/00 1,007,380
1,142,230 WFS Financial Owner Trust, Ser. 1997-B,
Class A2, 6.050% due 7/20/00 1,142,944
1,268,112 World Omni Auto Lease Sec. Trust,
Ser. 1996-A, Class A1, 6.300% due 6/25/02 1,268,732
697,058 World Omni Auto Lease Trust, Ser. 1996-B,
Class A1, 5.950% due 11/15/02 697,490
Total Asset & Mortgage-Backed Securities
(Cost $42,125,424) 42,141,443
Bank Obligations - 19.5%#
3,000,000 Bank of Austria Yankee CD, 5.735%
due 6/7/99 2,998,202
3,700,000 Bank of Montreal Bankers Acceptance,
5.750%, due 7/1/98 3,700,000
1,000,000 Bank of Nova Dcotia Yankee CD, 5.689%,
due 2/25/99 999,712
1,000,000 Bayerische Vereinsbank Yankee CD, 5.604%,
due 10/6/98 999,896
1,000,000 Deutsche Bank Yankee CD, 5.573%
due 7/9/98 1,000,098
2,123,000 IBT Time Deposit, 5.625%, due 7/1/98 2,123,000
3,000,000 Natwest Yankee CD, 5.735%, due 5/7/99 2,999,615
Total Bank Obligations
(Cost $14,820,523) 14,820,523
U.S. Government Agency Obligations - 17.5%#
13,500,00 Federal Home Loan Mortgage Corp., 5.542%,
due 9/23/98 13,328,685
Total U.S. Government Agency Obligations
(Cost $13,336,881) 13,328,685
U.S. Treasury Bills - 11.0%# 8,000,000
5.110% due 11/5/98 7,858,320
500,000 5.020% due 12/10/98 488,592
Total U.S. Treasury Bills
(Cost $8,344,426) 8,346,912
Total Investments - 103.4%
(Cost $78,627,254) 78,637,563
Liabilities in Excess
of Other Assets - (3.4%) (2,613,828)
Net Assets - 100.0% $76,023,735
+ See note 2 to the Financial Statements.
# Interest rate represents the yield to maturity at the time
of purchase.
FRN Floating Rate Note. Rate shown is the coupon rate in effec
at June 30, 1998.
See accompanying Notes to Financial Statements.
Statement of Assets and Liabilities
June 30, 1998 (unaudited)
<TABLE>
<S> <C> <C> <C>
TIFF Multi- TIFF International TIFF Emerging
Asset Fund Equity Fund Markets Fund (MAF)
(IEF) (EMF)
Assets
Investments in securities, at value
(cost: MAF $371,558,391; IEF $262,568,512; EMF $94,273,913) $384,975,933 $293,954,492 $72,248,682
Cash 200,000 106,884 53,114
Foreign currency (cost: IEF $1,212,854; EMF $618,085) - 1,208,745 598,320
Receivable for capital stock sold 150 198,649 -
Receivable for investments sold 22,442,572 545,581 159,842
Dividend and interest receivable 1,112,972 952,400 118,906
Deposit with brokers for short sales 4,306,337 - -
Receivables for securities sold short 1,133,607 - -
Unrealized appreciation on forward currency contracts 166,043 294,783 -
Deferred organizational costs 2,945 2,605 1,141
Other assets 19,953 57,684 -
Total assets 414,360,512 297,321,823 73,180,005
Liabilities
Payable to broker 21,773 - -
Payable for collateral on securities loan - 12,107,677 3,118,543
Payable for investments purchased 40,337,139 2,353,800 1,285,358
Market value of securities sold short (proceeds: MAF $4,324,428) 4,084,535 - -
Payable for short sales repurchased 1,335,218 - -
Payable for capital stock repurchased 200,150 - -
Variation margin on financial futures contracts payable 75,753 - -
Unrealized depreciation on forward foreign currency contracts 113,174 672 -
Dividends payable - - -
Due to custodian 2,428,610 - -
Accrued expenses and other liabilities 142,266 141,997 75,990
Total liabilities 48,738,618 14,604,146 4,479,891
Net Assets
Capital stock (authorized $500,000,000 par value $0.001) 348,582,724 238,468,483 102,562,523
Distribution in excess of net investment income (1,134,489) - (3,147,227)
Undistributed net investment income - 681,351 -
Accumulated net realized gains (losses) from investments 3,515,006 11,885,861 (8,668,951)
Net unrealized appreciation (depreciation) from investment activities 14,658,653 31,681,982 (22,046,230)
Net assets $365,621,894 $282,717,677 $68,700,114
Shares outstanding 29,504,021 21,931,041 10,739,127
Net asset value, offering, and redemption value per share $12.39 $12.89 $6.40
TIFF U.S. TIFF TIFF Short-
Equity Fund Bond Fund Term Fund (USEF)
(BF) (STF)
Assets
Investments in securities, at value
(cost: USEF $262,906,571; BF $197,742,389; STF $78,627,254) $315,565,706 $201,092,862 $78,637,563
Cash 91,500 24,035 -
Receivable for capital stock sold 24,938 - -
Receivable for investments sold 435,080 10,634,495 125,988
Dividend and interest receivable 321,490 1,908,039 352,264
Deposit with brokers for short sales 154,590 - -
Variation margin receivable - - 800
Deferred organizational costs 3,484 1,867 468
Other assets 80,513 40,507 53,739
Total assets 316,677,301 213,701,805 79,170,822
Liabilities
Payable for investments purchased 1,869,438 17,930,622 2,999,175
Market value of securities sold short (proceeds: USEF $706,629) 229,525 - -
Variation margin on financial futures contracts payable 212,500 11,433 -
Dividends payable - 371,528 37,620
Due to custodian - 1,475 -
Accrued expenses and other liabilities 47,589 26,875 110,292
Total liabilities 2,359,052 18,341,933 3,147,087
Net Assets
Capital stock (authorized $500,000,000 par value $0.001) 229,810,764 191,126,527 76,302,144
Distribution in excess of net investment income (609,235) (86,961) (41,033)
Accumulated net realized gains (losses) from investments 31,312,931 1,009,449 (250,024)
Net unrealized appreciation (depreciation) from investment activities 53,803,789 3,310,857 12,648
Net assets $314,318,249 $195,359,872 $76,023,735
Shares outstanding 17,869,497 18,954,284 7,626,288
Net asset value, offering, and redemption value per share $17.59 $10.31 $9.97
</TABLE>
Statement of Operations For the Six Months Ended
June 30, 1998 (unaudited)
<TABLE>
<S> <C> <C>
TIFF Multi- TIFF International TIFF Emerging
Asset Fund Equity Fund Markets Fund (MAF)
(IEF) (EMF)
Investment income
Interest $2,619,447 $357,242 $164,365
Dividends (net of withholding taxes: MAF $217,676; IEF $402,686) 1,857,950 3,029,497 885,545
Total investment income 4,477,397 3,386,739 1,049,910
Expenses
Money manager fees 315,039 326,722 1,262,877
Investment advisory fees 398,844 195,293 60,603
Accounting and custody fees 321,637 245,866 177,039
Administration fees 109,194 71,274 22,122
Audit and legal fees 104,674 82,751 60,276
Federal and state registration fees 67,744 24,347 9,704
Shareholder recordkeeping fees 13,468 11,698 5,871
Insurance expense 14,128 10,427 2,463
Amortization of organizational expenses 1,671 1,391 622
Miscellaneous fees and expenses 6,655 3,661 1,208
Total operating expenses 1,353,054 973,430 1,602,785
Net investment income (loss) 3,124,343 2,413,309 (552,875)
Net realized and unrealized gains (losses) from investment
activities Net
realized gains (losses) from:
Investment transactions 439,075 11,993,066 (3,873,841)
Short sales (402,271) - -
Financial futures and options contracts 1,211,242 (768,880) -
Forward foreign currency contracts and foreign currency
related transactions (81,362) 112,584 308,748
Net realized gains (losses) 1,166,684 11,336,770 (3,565,093)
Net change in unrealized appreciation (depreciation) from:
Investments 18,865,582 8,854,082 (13,683,523)
Short sales 258,978 - -
Financial futures and options contracts related transactions 1,003,736 - -
Forward currency contracts and foreign currency related transactions 34,970 39,661 72,766
Net change in unrealized appreciation (depreciation) 20,163,266 8,893,745 (13,610,757)
Net realized and unrealized gains from investment activities 21,329,950 20,230,515 (17,175,850)
Net increase in net assets resulting from operations $24,454,293 $22,643,824 ($17,728,725)
TIFF U.S. TIFF TIFF Short-
Equity Fund Bond Fund Term Fund (USEF)
(BF) (STF)
Investment income
Interest $790,760 $5,881,987 $1,575,239
Dividends (net of withholding taxes: USEF $22,835 ) 1,743,042 58,708 -
Total investment income 2,533,802 5,940,695 1,575,239
Expenses
Money manager fees 499,675 82,937 53,295
Investment advisory fees 205,895 82,640 7,994
Accounting and custody fees 98,080 84,510 25,150
Administration fees 75,137 45,245 14,577
Audit and legal fees 68,861 51,901 38,880
Federal and state registration fees 34,198 21,948 10,441
Shareholder recordkeeping fees 13,694 10,444 8,623
Insurance expense 10,999 6,732 3,177
Amortization of organizational expenses 1,787 939 255
Miscellaneous fees and expenses 5,579 2,384 576
Total expenses before waivers 1,013,905 389,680 162,968
Fee waiver - - 69,710
Net expenses 1,013,905 389,680 93,258
Net investment income 1,519,897 5,551,015 1,481,981
Net realized and unrealized gains (losses) from investment activities Net
realized gains (losses) from:
Investment transactions 21,695,987 892,882 20,170
Short sales 556,227 - -
Financial futures and options contracts 2,028,587 213,732 7,905
Forward foreign currency contracts and foreign currency related transactions (1,402) - -
Net realized gains 24,279,399 1,106,614 28,075
Net change in unrealized appreciation (depreciation) from:
Investments 7,144,764 100,312 26,631
Short sales (593,663) - -
Financial futures and options contracts related transactions 559,400 (60,519) (232)
Net change in unrealized appreciation (depreciation) 7,110,501 39,793 26,399
Net realized and unrealized gains from investment activities 31,389,900 1,146,407 54,474
Net increase in net assets resulting from operations $32,909,797 $6,697,422 $1,536,455
</TABLE>
Statement of Changes in Net Assets
<TABLE>
<S> <C> <C> <C> <C>
TIFF Multi-Asset Fund TIFF International Equity Fund
Six Months Six Months Year
Ended Year 6/30/1998 Ended
6/30/1998 Ended (unaudited) 12/31/1997
(unaudited) 12/31/1997
Increase (decrease) in net assets from
operations
Net investment income 3,124,343 $11,022,582 $2,413,309 $1,746,073
Net realized gains (losses) from investment activities 1,166,684 21,368,653 11,336,770 5,550,182
Net change in unrealized appreciation (depreciation)
from investment activities 20,163,266 (21,284,103) 8,893,745 (6,029,163)
Net increase (decrease) in net assets resulting from
operations 24,454,293 11,107,132 22,643,824 1,267,092
Dividends and distributions to members from:
Net investment income - (8,869,154) - (3,052,090)
Amounts in excess of net investment income - (4,258,832) - (1,731,958)
Net realized gains from investment activities - (19,429,947) - (5,486,586)
Total dividends and distributions to members - (32,557,933) - (10,270,634)
Net increase (decrease) in net assets from capital
share transactions
(see Appendix D) 1,149,797) 185,523,998 19,001,955 30,617,333
Net increase (decrease) in net assets 6,695,504) 164,073,197 41,645,779 21,613,791
Net assets
Beginning of period 82,317,398 218,244,201 241,071,898 219,458,107
End of period 65,621,894 382,317,398 282,717,677 241,071,898
Undistributed (distributions in excess of)
net investment income
included in net assets 1,134,489) ($4,258,832) $681,351 ($1,731,958)
</TABLE>
<TABLE>
<S> <C> <C> <C> <C>
TIFF Emerging Markets Fund TIFF U.S. Equity Fund
Six Months Six Months Year
Ended Year Ended Ended
6/30/1998 Ended 6/30/1998 12/31/1997
(unaudited) 12/31/1997 (unaudited)
Increase (decrease) in net assets from
operations
Net investment income $552,875) $823,121 $1,519,897 $2,962,614
Net realized gains (losses) from investment
activities ,565,093) 4,698,981 24,279,399 36,108,866
Net change in unrealized appreciation (depreciation)
from investment
activities 3,610,757) (5,120,338) 7,110,501 23,126,178
Net increase (decrease) in net assets resulting
from operations 7,728,725) 401,764 32,909,797 62,197,658
Dividends and distributions to members from:
Net investment income - (2,295,047) (538,441) (5,880,407)
Amounts in excess of net investment income - (2,594,353) - (1,590,691)
Net realized gains from investment activities - - - (29,924,738)
Total dividends and distributions to members - (4,889,400) (538,441) (37,395,836)
Net increase (decrease) in net assets from capital
share transactions
(see Appendix D) 2,592,803 (1,412,129) 26,232,942 54,115,616
Net increase (decrease) in net assets (15,135,922) (5,899,765) 58,604,298 78,917,438
Net assets
Beginning of period 83,836,036 89,735,801 255,713,951 176,796,513
End of period 68,700,114 83,836,036 314,318,249 255,713,951
Undistributed (distributions in excess of) net
investment income
included in net assets ($3,147,227) ($2,594,353) ($609,235) ($1,590,691)
</TABLE>
<TABLE>
<S> <C> <C> <C> <C>
TIFF Bond Fund TIFF Short-Term Fund
Six Months Six Months Year
Ended Year Ended Ended
6/30/1998 Ended 6/30/1998 12/31/1997
12/31/1997 (unaudited)
Increase (decrease) in net assets from operations
Net investment income $5,551,015 $9,879,502 $1,481,981 $2,149,723
Net realized gains (losses) from investment activities 1,106,614 1,505,304 28,075 (131,766)
Net change in unrealized appreciation (depreciation)
from investment activities 39,793 2,617,325 26,399 25,667
Net increase (decrease) in net assets resulting
from operations 6,697,422 14,002,131 1,536,455 2,043,624
Dividends and distributions to members from:
Net investment income (5,537,557) (9,789,136) (1,481,312) (2,153,026)
Amounts in excess of net investment income - (100,419) - (41,702)
Net realized gains from investment activities - (1,323,191) - -
Total dividends and distributions to members (5,537,557) (11,212,746) (1,481,312) (2,194,728)
Net increase (decrease) in net assets from capital
share transactions
(see Appendix D) 20,847,951 43,071,571 41,537,307 (28,887,861)
Net increase (decrease) in net assets 22,007,816 45,860,956 41,592,450 (29,038,965)
Net assets
Beginning of period 173,352,056 127,491,100 34,431,285 63,470,250
End of period 195,359,872 173,352,056 76,023,735 34,431,285
Undistributed (distributions in excess of) net
investment income
included in net assets ($86,961) ($100,419) ($41,033) ($41,702)
</TABLE>
TIFF Multi-Asset Fund - Financial Highlights
<TABLE>
<S> <C> <C> <C> <C>
Six Months
Ended Year Year Period from
6/30/1998 Ended Ended 3/31/1995 *
(unaudited) 12/31/1997 12/31/1996 to 12/31/1995
Selected data for a share of capital stock outstanding for
each period.
Net asset value, beginning of period $11.65 $12.08 $11.13 $10.00
Income from investment operations
Net investment income 0.24 0.44 0.17 0.26
Net realized and unrealized gains (losses) from investment
activities 0.50 0.21 1.45 1.14
Net increase from investment operations 0.74 0.65 1.62 1.40
Dividends and distributions to members
Net investment income - (0.30) (0.18) (0.24)
Amounts in excess of net investment income - (0.15) (0.13) -
Net realized gains from investment activities - (0.63) (0.36) (0.03)
Amounts in excess of net realized gains - - - -
Total dividends and distributions to members - (1.08) (0.67) (0.27)
Net asset value, end of period $12.39 $11.65 $12.08 $11.13
Total investment return (d) 6.35% 5.57% 14.72% 13.87%
(b)
Ratios/supplemental data
Net assets, end of period $365,621,894 $382,317,398 $218,244,201 $92,629,703
Expenses to average net assets 0.70% (a) 0.72% 1.03% 0.80%
(a) Net investment income to average net assets 1.63% (a) 3.30% 1.99% 4.00%
(a)
Portfolio turnover 107.02% (b) 181.51% 100.66% 97.35%
(b)
</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 investment 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.
TIFF International Equity Fund - Financial Highlights
<TABLE>
<S> <C> <C> <C> <C> <C>
Six Months
Ended Year Year Year Period from
Ended 6/30/1998 Ended Ended Ended 5/31/1994*
(unaudited) 12/31/1997 12/31/1996 12/31/1995 to 12/31/1994
Selected data for a share of capital stock outstanding
for each period.
Net asset value, beginning of period $11.77 $12.19 $10.82 $9.98 $10.00
Income from investment operations
Net investment income 0.12 0.17 0.10 0.15 0.05
Net realized and unrealized gains (losses) from investment
activities 1.00 (0.06) 1.62 0.83 0.06
Net increase from investment operations 1.12 0.11 1.72 0.98 0.11
Dividends and distributions to members
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 from investment activities - (0.28) (0.26) - -
Amounts in excess of net realized gains - - - - (0.08)
Total dividends and distributions to members 0.00 (0.53) (0.35) (0.14) (0.13)
Net asset value, end of period $12.89 $11.77 $12.19 $10.82 $9.98
Total investment return (d) 9.52% 0.89% 15.94% 9.85% 0.98% (b)(c)
Ratios/supplemental data
Net assets, end of period $282,717,677 $241,071,898 $219,458,107 $155,421,778 $89,308,767
Expenses to average net assets 0.73% (a) 1.21% 1.11% 1.05% 1.08% (a)
Expenses to average net assets before expense waivers 0.73% (a) 1.21% 1.11% 1.05% 1.27% (a)
Net investment income to average net assets 1.81% (a) 0.72% 0.91% 1.48% 0.95% (a)
Portfolio turnover 15.78% (b) 25.55% 32.40% 32.91% 14.71% (b)
</TABLE>
(a) Annualized.
(b) Not annualized.
(c) Total investment return would have been lower had certain expenses not been
waived or reimbursed. (d) Total investment 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.
TIFF Emerging Markets Fund- Financial Highlights
<TABLE>
<S> <C> <C> <C> <C> <C>
Six Months
Ended Year Year Year Period from
6/30/1998 Ended Ended Ended 5/31/1994 *
(unaudited) 12/31/1997 12/31/1996 12/31/1995 to 12/31/1994
Selected data for a share of capital stock outstanding
for each period.
Net asset value, beginning of period $8.09 $8.63 $8.45 $9.24 $10.00
Income from investment operations
Net investment income (0.04) 0.33 0.01 - 0.01
Net realized and unrealized gains (losses) from investment
activities (1.65) (0.36) 0.21 (0.79) (0.71)
Net increase from investment operations (1.69) (0.03) 0.22 (0.79) (0.70)
Dividends and distributions to members
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 from investment activities - - (0.00) # - -
Amounts in excess of net realized gains - - - (0.00) # (0.05)
Total dividends and distributions to members - (0.51) (0.04) (0.00) # (0.06)
Net asset value, end of period $6.40 $8.09 $8.63 $8.45 $9.24
Total investment return (d) (20.89%) (b) (0.40%) 2.51% (8.39%) (6.97%) (b)(c)
Ratios/supplemental data
Net assets, end of period $68,700,114 $83,836,036 $89,735,801 $59,485,616 $50,032,217
Expenses to average net assets 3.97% (a) 1.56% 1.62% 2.35% 1.83% (a)
Expenses to average net assets before expense waivers 3.97% (a) 1.56% 1.62% 2.35% 2.25% (a)
Net investment income to average net assets (1.37%) (a) 0.95% 0.06% (0.15%) 0.40% (a)
Portfolio turnover 24.82% (b) 72.23% 79.96% 104.30% 26.37% (b)
</TABLE>
(a) Annualized.
(b) Not annualized.
(c) Total investment return would have been lower had certain expenses not been
waived or reimbursed. (d) Total investment 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.
TIFF U.S. Equity Fund - Financial Highlights
<TABLE>
<S> <C> <C> <C> <C> <C>
Six Months
Ended Year Year Year Period from
6/30/1998 Ended Ended Ended 5/31/1994 *
12/31/1997 12/31/1996 12/31/1995 to 12/31/1994
Selected data for a share of capital stock outstanding
for each period.
Net asset value, beginning of period $15.66 $13.74 $12.36 $10.02 $10.00
Income from investment operations
Net investment income 0.09 0.50 0.20 0.20 0.15
Net realized and unrealized gains (losses) from
investment activities 1.87 3.94 2.52 3.37 0.19
Net increase from investment operations 1.96 4.44 2.72 3.57 0.34
Dividends and distributions to members
Net investment income (0.03) (0.40) (0.17) (0.22) (0.15)
Amounts in excess of net investment income - (0.11) (0.10) - 0.00 #
Net realized gains from investment activities - (2.01) (1.07) (1.01) (0.01)
Amounts in excess of net realized gains - - - - (0.16)
Total dividends and distributions to members (0.03) (2.52) (1.34) (1.23) (0.32)
Net asset value, end of period $17.59 $15.66 $13.74 $12.36 $10.02
Total investment return (d) 12.51% (b) 33.01% 21.91% 36.02% 3.49% (b)(c)
Ratios/supplemental dat
Net assets, end of period $314,318,249 $255,713,951 $176,796,513 $109,900,750 $58,173,066
Expenses to average net assets 0.69% (a) 0.70% 0.82% 0.93% 0.85% (a)
Expenses to average net assets before expense waivers 0.69% (a) 0.70% 0.82% 0.93% 1.06% (a)
Net investment income to average net assets 1.04% (a) 1.34% 1.41% 1.67% 2.52% (a)
Portfolio turnover 37.34% (b) 108.52% 105.18% 109.89% 44.59% (b)
</TABLE>
(a) Annualized.
(b) Not annualized.
(c) Total investment return would have been lower had certain expenses not been
waived or reimbursed. (d) Total investment 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.
TIFF Bond Fund - Financial Highlights
<TABLE>
<S> <C> <C> <C> <C> <C>
Six Months
Ended Year Year Year Period from
6/30/1998 Ended Ended Ended 5/31/1994 *
(unaudited) 12/31/1997 to 12/31/1996 12/31/1995 to 12/31/1994
elected data for a share of capital stock
outstanding for each period.
Net asset value, beginning of period $10.24 $10.06 $10.33 $9.68 $10.00
Income from investment operations
Net investment income 0.31 0.64 0.67 0.67 0.36
Net realized and unrealized gains (losses) from investment
activities 0.08 0.27 (0.27) 1.01 (0.32)
Net increase from investment operations 0.38 0.91 0.40 1.68 0.04
Dividends and distributions to members
Net investment income (0.31) (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 from investment activities - (0.08) - (0.36) -
Total dividends and distributions to members (0.31) (0.73) (0.67) (1.03) (0.36)
Net asset value, end of period $10.31 $10.24 $10.06 $10.33 $9.68
Total investment return (c) 3.71% (b) 9.35% 3.75% 18.07% 0.46% (b)(c)
Ratios/supplemental data
Net assets, end of period $195,359,872 $173,352,056 $127,491,100 $91,071,656 $79,671,253
Expenses to average net assets 0.43% (a) 0.56% 0.58% 0.96% 0.62% (a)
Expenses to average net assets before expense waivers 0.43% (a) 0.56% 0.58% 0.96% 0.94% (a)
Net investment income to average net assets 6.19% (a) 6.41% 6.64% 6.34% 6.37% (a)
Portfolio turnover 140.36% (b) 398.16% 332.21% 406.24% 162.06% (b)
</TABLE>
(a) Annualized.
(b) Not annualized.
(c) Total investment return would have been lower had certain expenses not been
waived or reimbursed. # Rounds to less than $0.01.
* Commencement of operations.
TIFF Short-Term Fund - Financial Highlights
<TABLE>
<S> <C> <C> <C> <C> <C>
Six Months
Ended Year Year Year Period from
6/30/1998 Ended Ended Ended 5/31/1994 *
(unaudited) 12/31/1997 12/31/1996 12/31/1995 to 12/31/1994
Selected data for a share of capital stock
outstanding for each period.
Net asset value, beginning of period $9.95 $9.99 $10.01 $10.00 $10.00
Income from investment operation
Net investment income 0.28 0.54 0.54 0.58 0.28
Net realized and unrealized gains (losses) from
investment activities 0.01 (0.02) (0.02) 0.05 0.02
Net increase from investment operations 0.29 0.52 0.52 0.63 0.30
Dividends and distributions to members
Net investment income (0.27) (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 from investment activities - - - (0.04) (0.01)
Amounts in excess of net realized gains - - - (0.00) # (0.01)
Total dividends and distributions to members (0.27) (0.56) (0.54) (0.62) (0.30)
Net asset value, end of period $9.97 $9.95 $9.99 $10.01 $10.00
Total investment return (c) 2.88% (b) 5.30% 5.28% 6.43% 3.10% (b)
Ratios/supplemental dat
Net assets, end of period $76,023,735 $34,431,285 $63,470,250 $96,579,919 $34,283,424
Expenses to average net assets 0.35% (a) 0.47% 0.36% 0.42% 0.40% (a)
Expenses to average net assets before expense waivers 0.61% (a) 0.56% 0.47% 0.54% 1.72% (a)
Net investment income to average net assets 5.54% (a) 5.53% 5.35% 5.67% 4.98% (a)
</TABLE>
(a) Annualized.
(b) Not annualized.
(c) Total investment return would have been lower had certain expenses
not been waived or reimbursed.
# Rounds to less than $0.01.
* Commencement of operations.
Notes to Financial Statements June 30, 1998 (unaudited)
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
Fund Investment Objective
Multi-Asset Provide a growing stream of current income and appreciation of
principal that at least offsets inflation. International Equity Provide a
growing stream of current income and
appreciation of principal that at least offsets inflation
by investing in common stocks of companies domiciled in at
least ten different countries.
Emerging Markets Provide appreciation of principal that at least
offsets inflation 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.
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 June 30, 1998, the
aggregate amount of securities fair valued were as follows:
Fund Amount % of Net Assets
Multi-Asset $83,540,240 22.8%
International Equity 22,568,633 8.0
Emerging Markets 13,064,474 19.0
U.S. Equity 8,850,283 2.8
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 Members
It is the policy of all Funds to declare dividends according to the following
schedule:
Fund Dividends from Net
Investment Income Capital Gains Distributions
Multi-Asset Semi-annually Annually
International EquitySemi-annually Annually
Emerging Markets Annually Annually
U.S. Equity Quarterly Annually
Bond Daily Annually
Short-Term Daily Annually
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.
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 from 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 June 30, 1998.
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 June 30, 1998, the Funds held assets with a broker as initial margin for
financial futures:
Segregated
Fund Assets
Multi-Asset $1,268,231
International Equity 1,385,044
U.S. Equity 1,385,044
Bond 196,680
Short-Term 488,592
Appendix C of the Notes to the Financial Statements details each Fund's open
futures contracts at June 30, 1998.
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- International 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, and the maximum effective fee
rates applicable during the six months ended June 30, 1998. 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, Investors Capital Services, Inc.
(formerly AMT Capital Services, Inc.), 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 Investors Capital Services, Inc. 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.
On May 29, 1998, Investors Capital Services, Inc. became a wholly-owned
subsidiary of Investors Bank and Trust Company (IBT), which is a wholly-owned
subsidiary of Investors Financial Services Co., Inc. IBT serves as the Funds'
custodian and accounting agent. Fees paid for services rendered by IBT are based
upon assets of the Funds and on transactions entered into by the Funds during
the year. Fees paid to IBT by the Funds are reflected as accounting and custody
fees in the statement of operations.
During the six months ended June 30, 1998, the adviser waived and reimbursed
$7,994 and $35,068, respectively, and the Fund's Money Manager waived $26,648 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, 1998 to June 30, 1998
were as follows:
Fund Purchases Sales
Multi-Asset $389,307,467 $405,583,254
International Equity 60,515,886 39,976,360
Emerging Markets 23,928,129 19,095,192
U.S. Equity 109,791,044 99,455,321
Bond 267,340,507 242,387,214
Short-Term 72,444,312 60,799,971
For Federal income tax purposes, the cost of securities owned at June 30, 1998,
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
June 30, 1998, for each Fund are as follows:
<TABLE>
<S> <C> <C> <C>
Net Unrealized Appreciation/
Fund Gross Appreciation Gross Depreciation (Depreciation)
Multi-Asset $38,589,572 ($25,172,030) $13,417,542
International Equity 62,373,764 (30,987,784) 31,385,980
Emerging Markets 3,302,550 (25,327,781) (22,025,231)
U.S. Equity 59,128,858 (6,469,723) 52,659,135
Bond 3,959,978 (609,505) 3,350,473
Short-Term 44,918 (34,609) 10,309
</TABLE>
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 June 30, 1998, 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.
IBT acts as the Funds' 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 Funds. At June 30, 1998, 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 June 30, 1998, 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 $12,093,652 $12,107,677
Emerging Markets 2,987,143 3,118,543
IBT has confirmed to the Funds that it received approximately $27,000 and
$12,000 in agency fees from the International Equity and Emerging Markets Funds,
respectively.
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.
The 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.
The 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 Multi-Asset, Bond, and Short-Term 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 Multi-Asset, Bond,
and Short-Term 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 Multi-Asset, 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
Multi-Asset 1 11
International Equity Fund 2 41
Emerging Markets Fund 3 50
U.S. Equity Fund 2 24
Bond Fund 1 14
Short-Term Fund 2 58
Appendix A
Money Manager Fee as Percent of Average Net Assets Managed
for the Six Months Ended June 30, 1998
<TABLE>
<S> <C> <C> <C> <C> <C>
Effective
Minimum Maximum Fee Rate (c)
TIFF Multi-Asset Fund
Bee & Associates, Inc. 0.15 2.00 0.16
Grantham, Mayo, Van Otterloo & Co. 0.30 1.00 0.00 (d)
Harding, Loevner Management, LP 0.10 1.50 0.10
Seix Investment Advisors, Inc. 0.10 0.80 0.10
Standard Pacific Capital LLC 0.15 2.00 0.38
Wellington Management Company LLP 0.45* 0.45 0.45
TIFF International Equity Fund
Bee & Associates, Inc. 0.15 2.00 0.55
Delaware International Advisers, Ltd. 0.30* 0.50 0.50
Harding, Loevner Management, LP 0.10 1.50 0.10
Marathon Asset Management, Ltd. 0.15 1.60 0.15
Mercury Asset Management International, Ltd. 0.50** 0.50 0.50
TIFF Emerging Markets Fund
Emerging Markets Management 0.40 3.00 5.77 (a)
Lazard Freres Asset Management 0.50** 0.50 0.50
TIFF U.S. Equity Fund
Martingale Asset Management, LP 0.05* 0.10 0.10
Palo Alto Investors 0.10 2.00 0.10
Shapiro Capital Management 0.50 0.95 0.50
Westport Asset Management, Inc. 0.15 2.00 1.43
TIFF Bond Fund
Atlantic Asset Management Partners, LLC 0.10 0.60 0.10
Seix Investment Advisors, Inc 0.10 0.80 0.12
Smith Breeden Associates, Inc. 0.10 0.85 0.10
TIFF Short-Term Fund
Fischer Francis Trees & Watts, Inc. 0.15* 0.20 0.10 (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).
(a) Rate includes a 1997 performance fee adjustment paid in 1998 in
accordance with the Money Manager Agreement.
(b) The Money Manager has agreed to voluntarily waive a portion of
its Money Manager fee.
(c) Annualized 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>
U.S. Dollar Foreign Currency Unrealized Appreciation
Contracts Receivable (Payable) Receivable (Payable) (Depreciation)
Multi-Asset Fund
Buy Contracts - Forwards
5,114,085 Danish Krone 7/15/98 ($749,992) $750,559 $567
2,405,000 Finnish Markka 7/15/98 (442,182) 439,037 (3,145)
4,407,042 French Franc 7/15/98 (740,250) 729,498 (10,752)
464,487 German Deutsche Mark 7/15/98 (259,625) 257,574 (2,051)
66,416 Great British Pound 7/15/98 (110,782) 110,809 27
1,061,028,359 Italian Lira 7/15/98 (601,505) 597,268 (4,237)
3,050,000 Japanese Yen 7/15/98 (21,390) 22,042 652
393,033 Norwegian Krone 7/15/98 (52,604) 51,287 (1,317)
118,979,974 Portuguese Escudo 7/15/98 (651,005) 644,463 (6,542)
1,400,000 Spanish Peseta 7/15/98 (9,268) 9,151 (117)
5,732,992 Swedish Krona 7/15/98 (740,763) 719,055 (21,708)
970,951 Swiss Franc 7/15/98 (650,736) 641,309 (9,427)
Total (58,050)
Buy Contracts - Spots
1,721,983 French Franc 7/31/98 (285,041) 285,203 162
161,553 German Deutsche Mark 7/6/98 (89,493) 89,518 25
3,034,743 Japanese Yen 7/2/98 (21,423) 21,888 465
2,808,400 Japanese Yen 7/6/98 (20,349) 20,256 (93)
116,431 Netherlands Guilder 7/1/98 (57,024) 57,252 228
58,210 Netherlands Guilder 7/2/98 (28,499) 28,625 126
Total 913
Sell Contracts - Forwards
5,114,085 Danish Krone 7/15/98 743,693 (744,582) (889)
2,405,000 Finnish Markka 7/15/98 446,901 (439,037) 7,864
39,193,981 French Franc 7/15/98 6,526,686 (6,487,719) 38,967
1,741,094 German Deutsche Mark 7/15/98 978,377 (965,595) 12,782
1,013,696 Great British Pound 7/15/98 1,669,495 (1,691,265) (21,770)
2,554,698,646 Italian Lira 7/15/98 1,422,010 (1,438,076) (16,066)
3,050,000 Japanese Yen 7/15/98 22,150 (22,042) 108
738,484 Netherlands Guilder 7/15/98 367,584 (363,454) 4,130
1,957,104 Norwegian Krone 7/15/98 260,253 (255,383) 4,870
118,979,974 Portuguese Escudo 7/15/98 633,058 (644,463) (11,405)
47,465,499 Spanish Peseta 7/15/98 311,753 (310,262) 1,491
11,856,675 Swedish Krona 7/15/98 1,535,378 (1,487,113) 48,265
4,080,317 Swiss Franc 7/15/98 2,739,131 (2,695,200) 43,931
Total 112,278
Sell Contracts - Spots
85,974 French Franc 7/31/98 14,229 (14,236) (7)
19,249 German Deutsche Mark 7/1/98 10,617 (10,667) (50)
51,854 German Deutsche Mark 7/6/98 28,725 (28,733) (8)
54,192 Great British Pound 7/1/98 90,371 (90,485) (114)
578,637 Japanese Yen 7/2/98 4,124 (4,173) (49)
31,034,325 Japanese Yen 7/6/98 224,870 (223,837) 1,033
14,259 Malaysian Ringgit 7/1/98 3,564 (3,440) 124
14,195 Malaysian Ringgit 7/2/98 3,485 (3,423) 62
10,430 Malaysian Ringgit 7/7/98 2,532 (2,518) 14
884,235 New Mexican Peso 7/1/98 97,933 (98,434) (501)
928,280 New Mexican Peso 7/2/98 103,487 (103,337) 150
550,943 South African Rand 7/7/98 91,633 (93,288) (1,655)
5,044,820 Swedish Krona 7/1/98 631,471 (632,742) (1,271)
Total (2,272)
Net unrealized appreciation $52,869
International Equity Fund
Sell Contracts - Forward
303,825,000 Japanese Yen 8/11/98 $2,500,000 ($2,204,669) $295,331
Sell Contracts - Spots
1,696,532 Belgian Franc 7/1/98 45,284 (45,615) (331)
1,474,650 Italian Lira 7/2/98 832 (830) 2
Total (329)
Net Unrealized Appreciation $295,002
</TABLE>
Appendix C
Open Futures Contracts as of June 30, 1998
Number of Cost Value at Appreciation
Contracts (Proceeds) June 30, 1998 (Depreciation)
Multi-Asset Fund
Long Futures Contracts
71 Sep 1998 S&P 500 $19,414,700 $20,288,250 $873,550
21 Sep 1998 U.S. Treasury
Bonds 2,545,266 2,595,469 50,203
30 Sep 1998 Russell 6,623,125 6,935,250 312,125
Short Futures Contracts
30 Sep 1998 CAC 40 $3,985,282 ($4,210,518) (225,236)
Total $1,010,642
U.S. Equity Fund
Long Futures Contracts
100 Sep 1998 S&P 500 $27,907,450 $28,575,000 $667,550
Bond Fund
Long Futures Contracts
16 Sep 1998 5-Year Note $1,747,797 $1,755,000 $7,203
3 Sep 1998 U.S. 30-Year
T-Bond 364,777 370,781 6,004
5 Sep 1998 CME Euro 1,178,853 1,178,812 (41)
5 Dec 1998 CME Euro 1,178,041 1,178,375 334
5 Mar 1999 CME Euro 1,178,353 1,179,063 710
5 Jun 1999 CME Euro 1,177,916 1,178,750 834
4 Sep 1999 CME Euro 942,033 942,700 667
4 Dec 1999 CME Euro 940,933 941,700 767
2 Mar 2000 CME Euro 470,816 471,100 284
Short Futures Contracts
(80) Sep 1998 U.S. 10-Year
T-Notes ($9,055,338) ($9,107,500) (52,162)
(3) Sep 1998 CME Euro (705,675) (707,287) (1,612)
(1) Sep 1998 5-Year Note (109,297) (109,688) (391)
(3) Mar 1999 CME Euro (705,225) (707,438) (2,213)
Total ($39,616)
Short-Term Fund
Long Futures Contracts
39 Dec 1998 Euro $9,189,564 $9,191,325 $1,761
14 Sep 1998 Euro 3,300,097 3,300,675 578
Total $2,339
Appendix D
Capital Share Transactions
Six Months Ended 6/30/1998
(unaudited) Year Ended 12/31/1997
<TABLE>
<S> <C> <C> <C> <C>
Multi-Asset Fund Shares Amount Shares Amount
Shares Sold 958,046 $11,632,086 16,711,363 $ 211,966,687
Shares Reinvested - - 2,238,996 26,221,425
Exit/Entrance Fee - 376,785 - 1,224,865
Subtotal 958,046 12,008,871 18,950,359 239,412,977
Shares Redeemed (4,278,807) (53,158,668) (4,198,208) (53,888,979)
Net Increase (3,320,761) ($41,149,797) 14,752,151 $185,523,998
Six Months Ended 6/30/1998
(unaudited) Year Ended 12/31/1997
International
Equity Fund Shares Amount Shares Amount
Shares Sold 1,931,922 $24,893,912 2,546,568 $31,880,666
Shares Reinvested - - 788,565 9,438,744
Exit/Entrance Fees - 196,890 - 227,931
Subtotal 1,931,922 25,090,802 3,335,133 41,547,341
Shares Redeemed (474,632) (6,088,847) (862,899) (10,930,008)
Net Increase 1,457,290 $19,001,955 $2,472,234 $30,617,333
Six Months Ended 6/30/1998
(unaudited) Year Ended 12/31/1997
Emerging Markets
Fund Shares Amount Shares Amount
Shares Sold 474,543 $3,306,551 1,705,875 $15,529,455
Shares Reinvested - - 482,627 3,919,420
Exit/Entrance Fees - 37,223 - 367,820
Subtotal 474,543 3,343,774 2,188,502 19,816,695
Shares Redeemed (92,072) (750,971) (2,226,500) (21,228,824)
Net Increase/
(Decrease) 382,471 2,592,803 (37,998) ($1,412,129)
Six Months Ended 6/30/1998
(unaudited) Year Ended 12/31/1997
U.S. Equity Fund Shares Amount Shares Amount
Shares Sold 3,062,512 $51,485,037 2,063,678 $32,136,175
Shares Reinvested 15,046 271,136 1,755,692 27,538,988
Exit/Entrance Fees - 169,260 - 86,917
Subtotal 3,077,558 51,925,433 3,819,370 59,762,080
Shares Redeemed (1,539,998) (25,692,491) (360,988) (5,646,464)
Net Increase 1,537,560 $26,232,942 3,458,382 $54,115,616
Six Months Ended 6/30/1998
(unaudited) Year Ended 12/31/1997
Bond Fund Shares Amount Shares Amount
Shares Sold 2,451,808 $25,164,700 5,708,623 $57,808,297
Shares Reinvested 345,061 3,540,021 697,803 6,985,148
Subtotal 2,796,869 28,704,72 6,406,426 64,793,445
Shares Redeemed (764,133) (7,856,770) (2,162,530) (21,721,874)
Net Increase 2,032,736 $20,847,951 4,243,896 $43,071,571
Six Months Ended 6/30/1998
(unaudited) Year Ended 12/31/1997
Short-Term Fund Shares Amount Shares Amount
Shares Sold 5,661,551 $56,448,347 4,512,506 $44,996,755
Shares Reinvested 125,313 1,249,492 162,340 1,626,271
Subtotal 5,786,864 7,697,839 4,674,846 46,623,026
Shares Redeemed (1,620,417) (16,160,532) (7,569,665) (75,510,887)
Net Increase/
(Decrease) 4,166,447 $41,537,307 (2,894,819) ($28,887,861)
</TABLE>
Appendix E
Summary of Transactions with Affilitated Companies
during the Six Months Ended June 30, 1998
(unaudited)
<TABLE>
<S> <C> <C> <C> <C> <C> <C>
Change
in Unrealized
Realized Dividend Value at Appreciation
Affiliate Purchase Cost Sales Proceeds Gain (Loss) Income 6/30/1998 (Depreciation)
Multi-Asset
Grantham, Mayo,
Van Otterloo & Co. $0 $33,794,354 ($5,164,316) $0 $9,390,486 ($365,605)
International Equity
Investible Emerging
Markets
Country Fund LP - - - - 11,468,633 ($4,119,535)
Emerging Markets
Investible
Emerging Markets
Country Fund LP 96,154 - - - $6,148,604 ($826,747)
</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.
TIFF INVESTMENT PROGRAM
ADVISER
Foundation Advisers, Inc.
2405 Ivy Road
Charlottesville, VA 22903
phone (804) 817-8433
fax (804) 817-8231
CUSTODIAN
ACCOUNTING AGENT
TRANSFER AGENT
DIVIDEND DISBURSING AGENT
Investors Bank & Trust Company
Box 1537
Boston, MA 02205
FUND ADMINISTRATOR
AND DISTRIBUTOR
Investors Capital Services, Inc.
600 Fifth Avenue, 26th Floor
New York, NY 10020
LEGAL COUNSEL
Dechert Price & Rhoads
1500 K Street, N.W.
Washington, DC 20005
INDEPENDENT ACCOUNTANTS
PricewaterhouseCoopers LLP
1177 Avenue of the Americas
New York, NY 10036
MONEY MANAGERS
TIFF Multi-Asset Fund
Bee & Associates, Inc.
Grantham, Mayo, Van Otterloo & Co.
Harding, Loevner Management, LP
Seix Investment Advisors, Inc.
Standard Pacific Capital LLC
Wellington Management Company LLP
TIFF International Equity Fund
Bee & Associates, Inc.
Delaware International Advisers, Ltd.
Harding, Loevner Management, LP
Marathon Asset Management, Ltd.
Mercury Asset Management International, Ltd.
TIFF Emerging Markets Fund
Emerging Markets Management
Lazard Freres Asset Management
TIFF U.S. Equity Fund
Martingale Asset Management, LP
Palo Alto Investors
Shapiro Capital Management
Westport Asset Management, Inc.
TIFF Bond Fund
Atlantic Asset Management Partners, Inc.
Seix Investment Advisors, Inc.
Smith Breeden Associates, Inc.
TIFF Short-Term Fund
Fischer Francis Trees & Watts, Inc.
<TABLE> <S> <C>
<ARTICLE> 6
<SERIES>
<NUMBER> 6
<NAME> MULTI-ASSET FUND
<MULTIPLIER> 1,000
<S> <C>
<PERIOD-TYPE> 6-MOS
<FISCAL-YEAR-END> JUN-30-1998
<PERIOD-END> DEC-31-1998
<INVESTMENTS-AT-COST> 371558
<INVESTMENTS-AT-VALUE> 384976
<RECEIVABLES> 23556
<ASSETS-OTHER> 5829
<OTHER-ITEMS-ASSETS> 0
<TOTAL-ASSETS> 414361
<PAYABLE-FOR-SECURITIES> 40337
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 8402
<TOTAL-LIABILITIES> 48739
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 348583
<SHARES-COMMON-STOCK> 29504
<SHARES-COMMON-PRIOR> 32825
<ACCUMULATED-NII-CURRENT> 0
<OVERDISTRIBUTION-NII> (1134)
<ACCUMULATED-NET-GAINS> 3515
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> 14658
<NET-ASSETS> 365622
<DIVIDEND-INCOME> 1858
<INTEREST-INCOME> 2619
<OTHER-INCOME> 0
<EXPENSES-NET> 1353
<NET-INVESTMENT-INCOME> 3124
<REALIZED-GAINS-CURRENT> 1167
<APPREC-INCREASE-CURRENT> 20163
<NET-CHANGE-FROM-OPS> 24454
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> 0
<DISTRIBUTIONS-OF-GAINS> 0
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 0
<NUMBER-OF-SHARES-REDEEMED> 0
<SHARES-REINVESTED> 0
<NET-CHANGE-IN-ASSETS> (16695)
<ACCUMULATED-NII-PRIOR> 0
<ACCUMULATED-GAINS-PRIOR> 2348
<OVERDISTRIB-NII-PRIOR> (4259)
<OVERDIST-NET-GAINS-PRIOR> 0
<GROSS-ADVISORY-FEES> 714
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> 1353
<AVERAGE-NET-ASSETS> 386805
<PER-SHARE-NAV-BEGIN> 0
<PER-SHARE-NII> .24
<PER-SHARE-GAIN-APPREC> .50
<PER-SHARE-DIVIDEND> 0
<PER-SHARE-DISTRIBUTIONS> 0
<RETURNS-OF-CAPITAL> 0.00
<PER-SHARE-NAV-END> 12.39
<EXPENSE-RATIO> 0.70
<AVG-DEBT-OUTSTANDING> 0
<AVG-DEBT-PER-SHARE> 0
</TABLE>
[ARTICLE] 6
[SERIES]
[NUMBER] 2
[NAME] INTERNATIONAL EQUITY FUND
[MULTIPLIER] 1,000
<TABLE>
<S> <C>
[PERIOD-TYPE] 6-MOS
[FISCAL-YEAR-END] JUN-30-1998
[PERIOD-END] DEC-31-1998
[INVESTMENTS-AT-COST] 262569
[INVESTMENTS-AT-VALUE] 293954
[RECEIVABLES] 1990
[ASSETS-OTHER] 1377
[OTHER-ITEMS-ASSETS] 0
[TOTAL-ASSETS] 297321
[PAYABLE-FOR-SECURITIES] 2353
[SENIOR-LONG-TERM-DEBT] 0
[OTHER-ITEMS-LIABILITIES] 12250
[TOTAL-LIABILITIES] 14603
[SENIOR-EQUITY] 0
[PAID-IN-CAPITAL-COMMON] 238469
[SHARES-COMMON-STOCK] 21931
[SHARES-COMMON-PRIOR] 20474
[ACCUMULATED-NII-CURRENT] 681
[OVERDISTRIBUTION-NII] 0
[ACCUMULATED-NET-GAINS] 11886
[OVERDISTRIBUTION-GAINS] 0
[ACCUM-APPREC-OR-DEPREC] 31682
[NET-ASSETS] 282718
[DIVIDEND-INCOME] 3029
[INTEREST-INCOME] 357
[OTHER-INCOME] 0
[EXPENSES-NET] 973
[NET-INVESTMENT-INCOME] 2413
[REALIZED-GAINS-CURRENT] 11337
[APPREC-INCREASE-CURRENT] 8894
[NET-CHANGE-FROM-OPS] 22644
[EQUALIZATION] 0
[DISTRIBUTIONS-OF-INCOME] 0
[DISTRIBUTIONS-OF-GAINS] 0
[DISTRIBUTIONS-OTHER] 0
[NUMBER-OF-SHARES-SOLD] 1932
[NUMBER-OF-SHARES-REDEEMED] 475
[SHARES-REINVESTED] 0
[NET-CHANGE-IN-ASSETS] 41646
[ACCUMULATED-NII-PRIOR] 0
[ACCUMULATED-GAINS-PRIOR] 549
[OVERDISTRIB-NII-PRIOR] 1732
[OVERDIST-NET-GAINS-PRIOR] 0
[GROSS-ADVISORY-FEES] 522
[INTEREST-EXPENSE] 0
[GROSS-EXPENSE] 973
[AVERAGE-NET-ASSETS] 268235
[PER-SHARE-NAV-BEGIN] 11.77
[PER-SHARE-NII] 0.12
[PER-SHARE-GAIN-APPREC] 1.00
[PER-SHARE-DIVIDEND] 0.00
[PER-SHARE-DISTRIBUTIONS] 0.00
[RETURNS-OF-CAPITAL] 0
[PER-SHARE-NAV-END] 12.89
[EXPENSE-RATIO] 0.73
[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> 6-MOS
<FISCAL-YEAR-END> JUN-30-1998
<PERIOD-END> DEC-31-1998
<INVESTMENTS-AT-COST> 94274
<INVESTMENTS-AT-VALUE> 72249
<RECEIVABLES> 279
<ASSETS-OTHER> 1141
<OTHER-ITEMS-ASSETS> 0
<TOTAL-ASSETS> 73180
<PAYABLE-FOR-SECURITIES> 1286
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 3194
<TOTAL-LIABILITIES> 4480
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 102562
<SHARES-COMMON-STOCK> 10739
<SHARES-COMMON-PRIOR> 10357
<ACCUMULATED-NII-CURRENT> 0
<OVERDISTRIBUTION-NII> (3147)
<ACCUMULATED-NET-GAINS> (8669)
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> (22046)
<NET-ASSETS> 68700
<DIVIDEND-INCOME> 886
<INTEREST-INCOME> 164
<OTHER-INCOME> 0
<EXPENSES-NET> 1603
<NET-INVESTMENT-INCOME> (552875)
<REALIZED-GAINS-CURRENT> (3565)
<APPREC-INCREASE-CURRENT> (13610)
<NET-CHANGE-FROM-OPS> (17728)
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> 0
<DISTRIBUTIONS-OF-GAINS> 0
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 474
<NUMBER-OF-SHARES-REDEEMED> 92
<SHARES-REINVESTED> 0
<NET-CHANGE-IN-ASSETS> 2593
<ACCUMULATED-NII-PRIOR> 0
<ACCUMULATED-GAINS-PRIOR> 0
<OVERDISTRIB-NII-PRIOR> (2594)
<OVERDIST-NET-GAINS-PRIOR> (5104)
<GROSS-ADVISORY-FEES> 1323
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> 1603
<AVERAGE-NET-ASSETS> 81468
<PER-SHARE-NAV-BEGIN> 8.09
<PER-SHARE-NII> (0.04)
<PER-SHARE-GAIN-APPREC> (1.65)
<PER-SHARE-DIVIDEND> 0
<PER-SHARE-DISTRIBUTIONS> 0
<RETURNS-OF-CAPITAL> 0
<PER-SHARE-NAV-END> 6.40
<EXPENSE-RATIO> 3.97
<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>
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