Annual Report TIFF
Investment
December 31, 1998 Program Investment
management
for
foundations
<PAGE>
February 22, 1999
Dear TIP Member:
We are pleased to present the Annual Report to Members of the TIFF
Investment Program, Inc. (TIP).
As you know, TIP is a family of multi-manager, commingled funds open
exclusively to 501(c)(3) organizations. TIP administers six Funds at present:
Multi-Asset, International Equity, Emerging Markets, U.S. Equity, Bond, and
Short-Term. All of 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 804-817-8200.
Sincerely,
David A. Salem
President
<PAGE>
Contents
<TABLE>
<S> <C>
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....................................................... 15
Schedule of Investments................................................. 16
TIFF U.S. Equity Fund
Performance Graph....................................................... 22
Schedule of Investments................................................. 23
TIFF Bond Fund
Performance Graph....................................................... 27
Schedule of Investments................................................. 28
TIFF Short-Term Fund
Performance Graph....................................................... 32
Schedule of Investments................................................. 33
Statement of Assets and Liabilities........................................ 35
Statement of Operations.................................................... 37
Statement of Changes in Net Assets......................................... 39
Financial Highlights....................................................... 42
Notes to Financial Statements.............................................. 48
Report of Independent Accountants.......................................... 60
</TABLE>
<PAGE>
TIFF Multi-Asset Fund December 31, 1998
[GRAPH APPEARS HERE]
<TABLE>
<CAPTION>
- --------------------------------------------------------------------------------
Comparison of Change in Value of $100,000 Investment in TIFF Multi-Asset Fund
and the Multi-Asset Constructed Indexx**
- --------------------------------------------------------
Past performance is not predictive of future performance
- --------------------------------------------------------
TIFF Multi-Asset Fund Multi-Asset Constructed Index**
<S> <C> <C>
*3/31/95 100000 100000
4/28/95 101500 102416
5/31/95 103100 104093
6/30/95 103700 104622
7/31/95 106852 107944
8/31/95 107255 106923
9/29/95 109066 109138
10/31/95 108563 108064
11/30/95 110575 110922
12/29/95 113873 113549
1/31/96 115718 115210
2/29/96 116948 115731
3/29/96 119100 117049
4/30/96 122483 119280
5/31/96 124226 119798
6/28/96 122893 119769
7/31/96 118795 116926
8/30/96 121059 118534
9/30/96 124147 121578
10/31/96 125794 122695
11/29/96 129626 126995
12/31/96 130630 126256
1/31/97 133772 127375
2/28/97 133555 128059
3/31/97 130630 126520
4/30/97 130955 128415
5/30/97 137237 134408
6/30/97 140053 138857
7/31/97 144721 143566
8/29/97 143303 138587
9/30/97 148865 144434
10/31/97 141231 138987
11/28/97 137634 138811
12/31/97 137789 140331
1/30/98 136368 142030
2/27/98 141576 147812
3/31/98 147021 151997
4/30/98 149980 153886
5/29/98 148086 151813
6/30/98 146666 153091
7/31/98 143926 151889
8/31/98 127921 139326
9/30/98 129713 145115
10/30/98 133655 152249
11/30/98 136355 157092
12/31/98 138217 161066
</TABLE>
* Commencement of operations.
- --------------------------------------------------------------------------------
Policy Considerations: The Fund is designed as a core vehicle for that portion
of an endowment committed to marketable securities. Its objective is to produce
a five percent inflation-adjusted return with sufficient consistency to induce
its holders to "stay the course": to adhere to investment policies that comport
better with their goal of preserving purchasing power than do policies that
place more emphasis on avoiding short-term embarrassment. The Fund seeks to
outperform its benchmark through three means: (1) active security selection
within asset class segments, (2) occasional shifting of assets among these
segments, and (3) judicious use of other commingled investment vehicles.
Performance Evaluation: The Multi-Asset Fund has achieved its primary objective
of producing an inflation-adjusted annualized return exceeding five percent
since inception, but in 1998 the Fund underperformed CPI+5% as well as the
Constructed Index that reflects its normal segment weights. This
underperformance is attributable primarily to manager strategy and tactics, the
most material being individual security selection. The market environment
during the 12 months ending December 31 was unusually inhospitable to two of
the Fund's managers in particular (Bee and Harding, Loevner). Three of the
Fund's other managers also encountered difficulties during the 12 months in
question. The Fund's resource-related specialist (Wellington) underperformed
its benchmark, 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). Canyon Partners produced very
disappointing returns during 1998 (-13.0%), due primarily to losses on
distressed securities (including non-US issues) whose downside risk proved
greater than Canyon's ex ante analysis indicated. Finally, distressed
securities specialist Daystar also had a bad year: it did very little trading,
but widening credit quality spreads and a liquidity drought caused its
portfolio to fall sharply during the late summer. Daystar's portfolio regained
some lost ground during 4Q 1998, but finished the year down 18.8%.
Investment Performance (For Periods Ended December 31, 1998)
<TABLE>
<CAPTION>
Total Return***
----------------------------------------------
Year Cumulative Since Annualized Since
Ended Inception (3/31/95) Inception (3/31/95)
----------------------------------------------
<S> <C> <C> <C>
TIFF Multi-Asset Fund 0.2% 38.2% 9.0%
Multi-Asset Constructed
Index** 14.8% 61.1% 13.5%
</TABLE>
** 25% Wilshire 5000; 30% MSCI All Country World ex US Index; 15% Merrill Lynch
Treasury Bill Index + 5% per annum; 10% MSCI Global Resource-Related Index;
15% Lehman Aggregate Bond Index; and 5% Lehman Majors ex US Bond Index
***Total return includes the effects of entry/exit fees received by the Fund.
1
<PAGE>
TIFF Multi-Asset Fund / Schedule of Investments December 31, 1998
<TABLE>
<S> <C> <C>
Number
of Shares Value +
Long Term Investments -- 81.6%
Common Stocks -- 38.3%
U.S. Common Stocks -- 13.4%
Aerospace -- 0.4%
25,000 AlliedSignal, Inc. $1,107,812
------------
Agricultural Biotech -- 0.7%
25,000 Air Products & Chemicals, Inc. 1,000,000
20,000 Monsanto Co. 950,000
------------
1,950,000
------------
Bank -- 0.1%
9,685 National Westminster 258,468
------------
Chemicals -- 0.1%
25,000 Wellman, Inc. 254,688
------------
Circuits -- 0.4%
9,000 Intel Corp. 1,067,062
------------
Computer -- 0.1%
25,000 Aspen Technologies, Inc.* 362,500
------------
Construction -- 0.9%
30,000 Baker Hughes, Inc. 530,625
43,000 Dover Corp. 1,574,875
25,800 J. Ray McDermott, SA* 630,488
------------
2,735,988
------------
Cosmetics -- 0.6%
20,000 Colgate-Palmolive Co. 1,857,500
------------
Diversifed Minerals -- 0.2%
8,100 Cleveland-Cliffs Inc. 326,531
15,000 Glamis Gold Ltd. 28,125
15,000 Golden Star Resources Ltd. 15,937
72,400 Resolute Ltd. 50,680
48,300 TVX Gold, Inc. 84,525
------------
505,798
------------
Financial -- 1.1%
85,646 Allied Capital Corp. 1,482,746
22,000 Federal National Mortgage Association 1,628,000
------------
3,110,746
------------
Foods -- 0.4%
12,000 Wrigley (WM.) Jr. Co. 1,074,750
------------
Forestry -- 0.4%
23,000 Weyerhaeuser Co. 1,168,687
------------
Health Care -- 0.3%
20,000 Quintiles Transnational Corp.* 1,067,500
------------
Insurance -- 0.4%
12,000 American International Group 1,159,500
------------
Machines -- 1.8%
28,000 Deere & Co. 927,500
70,000 KLA-Tencor Corp.* 3,036,250
70,000 Thermo Electron Corp.* 1,185,625
------------
5,149,375
------------
Medical Supplies -- 0.6%
30,000 Baxter International, Inc. 1,929,375
------------
</TABLE>
<TABLE>
<CAPTION>
Number
of Shares Value +
<C> <S> <C>
Metals -- 1.7%
11,500 Aluminum Company of America (Alcoa)* $857,469
20,000 Anadarko Petroleum Corp. 617,500
16,600 EASCO, Inc. 128,650
11,000 Kerr-McGee Corp. 420,750
9,400 Phelps Dodge Corp. 478,225
80,000 Santa Fe Energy Resources, Inc.* 590,000
25,000 Stillwater Mining Co. 1,025,000
17,100 Vastar Resources, Inc. 738,506
------------
4,856,100
------------
Mining -- 0.4%
20,000 Freeport-McMoRan* 208,750
60,200 Freeport-McMoRan Copper & Gold, Inc. - Class A* 583,188
30,000 Newmont Mining Corp. 541,875
------------
1,333,813
------------
Oil/Gas Exploration -- 0.8%
17,100 BJ Services Co.* 267,187
19,600 Enron Oil & Gas Co. 338,100
27,000 Schlumberger, Ltd. 1,245,375
17,500 USX-Marathon Group, Inc. 527,187
------------
2,377,849
------------
Oil/Gas Services -- 0.6%
3,700 Chevron Corp. 306,869
20,000 Exxon Corp. 1,462,500
------------
1,769,369
------------
Paper/Forest Products -- 0.4%
32,000 Willamette Industries, Inc. 1,072,000
------------
Pharmaceutical -- 0.6%
15,000 Pfizer, Inc. 1,881,562
------------
Railroad -- 0.3%
45,000 Wisconsin Central Transportation Corp.* 773,437
------------
Textiles, Clothing & Fabrics -- 0.1%
12,700 Weatherford International* 246,063
------------
Total U.S. Common Stocks
(Cost $40,010,984) 39,069,942
------------
Foreign Common Stocks -- 24.9%
Argentina -- 0.6%
48,960 Quilmes Industrial SA 440,640
43,200 YPF-Sociedad Anonima - ADR 1,206,900
------------
1,647,540
------------
Bermuda -- 0.3%
17,000 PartnerRe Ltd. 777,750
------------
Brazil -- 0.2%
34,500 Cia Vale Do Rio Doce - ADR* 442,600
------------
Canada -- 2.1%
30,000 Alberta Energy Company Ltd. 644,556
70,000 Barrick Gold Corp. 1,365,000
50,000 Canadian Occidental Petroleum Ltd. 521,875
</TABLE>
2
<PAGE>
TIFF Multi-Asset Fund / Schedule of Investments December 31, 1998
<TABLE>
<CAPTION>
Number
of Shares Value +
<C> <S> <C>
26,400 Euro-Nevada Mining Corp. $429,705
29,100 Imperial Oil Ltd. (Foreign Shares)* 468,162
45,000 PanCanadian Petroleum Ltd. 506,853
75,300 Petro Canada 796,659
60,000 Placer Dome, Inc. 690,000
428,569 Queenstake Resources, Ltd.*(c) 161,903
31,700 Talisman Energy, Inc.* 554,750
------------
6,139,463
------------
France -- 1.3%
18,000 BIC 998,443
31,500 Financiere et Industrielle Gaz et Eaux* 1,674,003
20,000 Total SA - ADR 995,000
------------
3,667,446
------------
Germany -- 0.7%
2,000 Allianz AG 732,878
51,500 Rinol AG 1,343,559
------------
2,076,437
------------
Ghana -- 0.3%
101,695 Ashanti Goldfields Co., Ltd. - GDR 953,391
------------
Hong Kong -- 1.9%
4,839,704 Hung Hing Printing Group 1,889,802
225,000 Hutchison Whampoa Ltd. 1,590,152
765,000 Jardine Strategic Holdings Ltd.* 1,109,250
400,000 Johnson Electric Holdings 1,027,508
------------
5,616,712
------------
Indonesia -- 0.0%+++
942,500 PT Davomas Abadi* 48,333
------------
Ireland -- 0.3%
50,000 CBT Group plc - ADR * 743,750
------------
Italy -- 0.2%
55,000 Luxottica Group SpA - ADR 660,000
------------
Japan -- 0.5%
8,500 Hirose Electronics Co., Ltd. 596,319
150,000 Mitsubishi Corp. 864,745
------------
1,461,064
------------
Malaysia -- 0.0%+++
67,037 Ramatex Berhad(b)(c) 51,372
------------
Mexico -- 0.3%
500,000 Desc Sociedad de Fomento Industrial SA de CV 419,828
125,000 Kimberly Clark de Mexico SA de CV 394,537
------------
814,365
------------
Netherlands -- 1.7%
35,000 Royal Dutch Petroleum Co. -
NY Shares 1,675,625
31,540 Van Melle NV 2,132,329
6,000 Wolters Kluwer CVA 1,283,364
------------
5,091,318
------------
Norway -- 1.5%
75,550 Kverneland Gruppen ASA 1,854,900
30,000 Norsk Hydro ASA - ADR 1,025,625
580,000 Norsk Lotteridrift ASA* 1,523,009
------------
4,403,534
------------
</TABLE>
<TABLE>
<CAPTION>
Number
of Shares Value +
<S> <C> <C>
Peru -- 0.1%
20,000 Minas Buenaventura - ADR $260,000
------------
Portugal -- 0.8%
68,700 Investec Consultadoria International* 2,366,052
------------
Singapore -- 1.1%
2,850,000 Electronic Resources Ltd. 2,593,267
55,500 Singapore Press Holdings 606,005
------------
3,199,272
------------
South Africa -- 0.3%
55,000 De Beers Consolidated Mines -ADR 701,250
140,000 LibLife Strategic Investments Ltd. 327,492
------------
1,028,742
------------
Spain -- 0.4%
20,000 Repsol SA - ADR 1,092,500
------------
Sweden -- 2.7%
175,000 Bure Investment AB 2,490,255
32,000 Investor AB - Class B 1,449,236
155,450 IRO AB 1,577,294
166,000 Nobel Biocare AB (144A)(a) 2,259,481
------------
7,776,266
------------
Switzerland -- 3.1%
4,500 ABB AG Namen 1,055,738
12,000 Nestle SA - ADR 1,306,171
7,750 Selecta Group 2,145,719
2,000 Societe Generale de Surveillance - Class R 472,131
2,000 Stratec Holding AG - Class B 2,768,670
1,938 Union Bank of Switzerland AG* 595,873
1,000 Zuerich Allied AG* 740,984
------------
9,085,286
------------
Thailand -- 0.5%
70,000 The Siam Cement Co., Ltd.* 1,591,172
------------
United Kingdom -- 4.0%
325,500 Billiton plc(c) 645,974
35,000 British Steel plc - ADR 511,875
222,150 JBA Holdings plc 683,949
700,000 McBride plc 1,164,940
80,000 Pearson plc 1,588,312
200,000 Rentokil Initial plc 1,507,765
125,900 Rio Tinto plc 1,464,564
28,000 Shell Transport & Trading Co. plc 1,041,250
720,000 Victrex plc 2,048,963
150,000 WPP Group plc 913,022
------------
11,570,614
------------
Total Foreign Common Stocks
(Cost $77,902,884) 72,564,979
------------
Total Common Stocks
(Cost $117,913,868) 111,634,921
------------
</TABLE>
3
<PAGE>
TIFF Multi-Asset Fund / Schedule of Investments December 31, 1998
<TABLE>
<CAPTION>
Principal Interest Maturity
Amount Rate Date Value +
<C> <S> <C> <C> <C>
Fixed Income Securities -- 17.2%
Asset-Backed Securities -- 2.8%
$485,000 Advanta Credit Card Master Trust (FRN),
Ser. 1995-F, Class A2 5.726% 8/1/03 $485,131
430,000 American Express Master Trust (FRN),
Ser. 1996-2, Class A 5.656% 8/15/02 429,101
39,867 Amerus Home Equity Loan Trust, Ser.
1997-1, Class A1 5.772% 10/15/03 39,803
480,000 AT&T Universal Card Trust (FRN),
Ser. 1996-3, Class A 5.600% 9/17/03 479,112
445,000 BA Master Credit Card Trust, Ser. 1997-
A, Class A 5.646% 7/15/04 443,425
350,000 Chase Credit Card Master Trust (FRN),
Ser. 1998-6, Class A 5.309% 9/15/04 350,070
480,000 Citibank Credit Card Master Trust
(FRN),
Ser. 1996-5, Class A 5.605% 9/15/05 477,466
165,877 Contimortgage Home Equity Loan Trust,
Ser. 1997-4, Class A2 6.270% 2/15/12 165,611
270,676 Countrywide Funding (FRN), Ser. 1997-2,
Class A 5.928% 5/25/27 268,202
324,878 Countrywide Home Equity Loan (FRN),
Ser. 1997-C, Class A 5.836% 9/15/22 323,920
416,735 Countrywide Home Equity Trust (FRN),
Ser. 1998-A, Class A 5.846% 3/15/24 416,735
445,000 Discover Card Master Trust I, Ser.
1997-1, Class A 5.368% 2/16/05 443,002
470,000 Discover Card Master Trust (FRN),
Ser. 1996-1, Class A 5.705% 7/16/03 469,878
420,000 Discover Card Trust,
Ser. 1997-2, Class A 6.792% 4/16/10 423,776
350,000 EQCC Home Equity Loan Trust, Ser. 1998-
4, Class A1F 5.984% 1/15/29 350,105
470,000 First USA Credit Card Trust (FRN),
Ser. 1995-5, Class A 5.730% 4/15/03 470,009
510,000 First USA Credit Card Trust (FRN),
Ser. 1996-2, Class A 5.726% 2/10/06 508,766
333,100 Merrill Lynch Home Equity Loan (FRN),
Ser. 1997-1, Class A 5.624% 9/25/27 332,790
480,000 People's Bank Credit Card Trust (FRN),
Ser. 1997-1, Class A 5.807% 10/15/04 478,704
164,980 Premier Auto Trust,
Ser. 1996-3, Class A3 6.500% 3/06/00 165,342
15 Premier Auto Trust,
Ser. 1997-1, Class A2 5.900% 4/06/00 15
470,000 Providian Master Trust (FRN), Ser.
1997-3, Class A 5.646% 12/15/05 469,126
</TABLE>
<TABLE>
<CAPTION>
Principal Interest Maturity
Amount Rate Date Value +
<C> <S> <C> <C> <C>
$264,239 Structured Asset Securities Corp.
(144A) (FRN),
Ser. 1998-C2A,
Class A(a) 5.8% 12/25/00 $264,319
---------
Total Asset-Backed Securities
(Cost $8,273,658) 8,254,408
---------
Corporate Obligations -- 6.7%
195,000 ABN-AMRO 7.125% 10/15/93 198,024
103,712 American Airlines,
Ser. 1991-A, Class A-1 9.710% 1/02/07 114,643
160,000 Amerus Life Holdings Inc. 6.950% 6/15/05 161,021
255,000 Associates Corp. NA 5.750% 11/01/03 256,821
135,000 Associates Corp. NA 5.875% 7/15/02 136,658
165,000 Banc One Corp. 7.250% 8/01/02 173,594
195,000 Bayerische Landesbank 5.875% 12/01/08 197,543
220,000 Cendant Corp. 7.500% 12/01/00 221,828
335,000 Chrysler Financial Corp. (FRN) 5.247% 5/11/00 334,296
330,000 CIT Group Inc. 5.910% 11/10/03 332,280
195,000 Citicorp Notes 6.375% 11/15/08 202,293
350,000 Citicorp (FRN) 5.930% 8/10/00 349,825
100,000 Comdisco Inc. 6.130% 8/01/01 99,457
245,000 Comdisco Inc. 6.380% 6/25/01 245,475
360,000 Continental Airlines 6.541% 3/15/08 363,535
175,000 Continental Airlines Pass Through
Certificates,
Ser. 1998-3 7.080% 11/01/04 174,302
200,000 Countrywide Funding (FRN) 5.570% 8/28/00 199,830
250,000 Countrywide Home Loans Inc. (MTN) 5.620% 10/16/00 249,188
465,000 Cummins Engine Co., Inc. 5.650% 3/01/98 330,893
215,000 Developers Diversified Realty Corp. 6.840% 12/16/04 208,399
200,000 Duke Capital Corp. 6.750% 7/15/18 209,106
200,000 Enron Corp. 6.725% 11/17/08 202,750
265,000 ERAC USA Finance Co., (144A) (a) 6.950% 3/01/04 268,508
195,000 Fairfax Financial Holdings Ltd. 7.750% 7/15/37 191,432
300,000 Farmers Insurance Exchange (144A) (a) 8.625% 5/01/24 363,561
120,000 Federated Department Stores 6.790% 7/15/27 125,488
250,000 First Union National Bank 5.800% 12/01/08 249,468
275,000 Florida Windstorm Underwriting (144A)
(a) 6.500% 8/25/02 280,304
155,000 Ford Motor Co. 7.700% 5/15/69 178,744
330,000 Goldman Sachs Group LP (144A)(a) 7.800% 7/15/02 348,186
340,000 Heller Financial Inc. (MTN) 5.870% 11/01/00 339,662
235,000 Household Netherlands, BV 5.750% 12/01/03 236,459
1,503,124 Humpuss Funding Corp. (144A)(a) 7.720% 12/15/09 1,124,743
130,000 IMC Global Inc. 7.625% 11/01/05 133,032
980,315 Jasmine Submarine Telecommunications
(144A)(a) 8.483% 5/30/11 908,477
115,000 Jet Equipment Trust
(144A)(a) 9.710% 8/15/13 144,001
143,253 Jet Equipment Trust (144A), Ser. 1995-
B (a) 7.630% 8/15/12 155,025
</TABLE>
4
<PAGE>
TIFF Multi-Asset Fund / Schedule of Investments December 31, 1998
<TABLE>
<CAPTION>
Principal Interest Maturity
Amount Rate Date Value +
<C> <S> <C> <C> <C>
$155,000 J.Seagram & Sons 7.600% 12/15/28 $156,016
245,000 Kern River Funding Corp. (144A)(a) 6.720% 9/30/01 250,286
170,000 Land 'O Lakes Cap Trust I (144A)(a) 7.450% 3/15/28 162,597
350,000 Lehman Brothers Holdings, Inc. 6.000% 2/26/01 347,446
275,000 Liberty Mutual Capital Corp. 8.100% 1/14/05 301,061
140,000 Liberty Property LP (MTN) 6.950% 12/01/06 131,574
175,000 Lumbermens Mutual Casualty (144A)(a) 8.450% 12/2097 187,393
130,000 Lumbermens Mutual Casualty (144A)(a) 9.150% 7/01/26 154,991
270,000 Martin Marietta Material 5.875% 12/01/08 268,888
125,000 Monsanto Corp. 6.600% 12/01/28 123,548
910,000 Mutual Life Insurance Co. -NY
(144A)(a)(e) 11.250% 8/15/24 1,355,214
335,000 Nations Bank NA (FRN) 5.171% 3/20/00 334,970
220,000 Newcourt Credit Group 7.125% 12/17/03 218,141
364,456 Northwest Airlines Corp. 7.068% 7/02/17 361,588
200,000 Owens Corning 7.500% 8/01/18 198,163
480,000 PNC Bank NA (FRN) 5.604% 5/26/00 478,416
135,000 PNC Funding Corp. (MTN) 6.500% 5/01/08 141,274
225,000 PSI Energy, Inc. 6.000% 12/14/01 224,990
460,000 Ras Laffan-Lincs,
Ser. 1997-11 (144A)(a)(d) 7.850% 3/18/14 530,068
100,000 Reliastar Financial Corp. 6.500% 11/15/08 101,431
240,000 Salomon Smith Barney Holdings Inc. 6.750% 2/15/03 247,181
265,000 Seagram Co., Ltd. 6.875% 9/01/23 245,918
270,000 Seagull Energy Corp. 7.500% 9/15/27 236,560
180,000 Shopko Stores 6.500% 8/15/03 179,701
720,000 SocGen Real Estate LLC (144A)(a) 7.640% 12/29/49 667,208
405,000 Texaco Capital Inc. 5.700% 12/01/08 404,066
235,000 Transamerica Finance Corp. 6.125% 11/01/01 235,990
250,000 Unova Inc. 6.875% 3/15/05 251,652
450,000 USA Networks Inc. (144A)(a) 6.750% 11/15/05 451,683
205,000 U.S. West Communications (FRN) 4.170% 3/25/99 204,634
415,000 Viacom Inc. 7.750% 6/01/05 453,146
----------
Total Corporate Debt
(Cost $19,533,670) 19,614,645
----------
Mortgage-Backed Securities -- 4.7%
475,000 FNMA 4.625% 10/15/01 471,076
1,310,000 FNMA TBA 6.000% 2/18/14 1,313,681
990,000 FGIC 15 Yr. TBA 6.000% 2/18/15 993,713
2,166,280 FNMA 6.500% 11/01/28 2,181,011
1,420,000 FNMA TBA 6.500% 12/11/29 1,429,770
1,360,000 FNMA TBA 6.500% 2/11/29 1,381,022
935,000 FNMA TBA 6.500% 2/18/69 948,445
334,639 FNMA 6.500% 9/01/28 336,941
200,000 FNMA TBA 7.000% 2/11/29 204,062
214,809 FHLMC 7.500% 10/01/28 220,515
1,515,821 GNMA 7.500% 10/15/28 1,562,721
200,000 GNMA 7.500% 2/22/29 206,188
350,000 FHLMC, Ser. 1944,
Class GB 7.500% 4/17/24 357,688
385,000 FNMA, Ser. 1997-15,
Class B 7.500% 7/18/25 395,349
</TABLE>
<TABLE>
<CAPTION>
Principal Interest Maturity
Amount Rate Date Value +
<C> <S> <C> <C> <C>
$932,464 FHLMC Gold 15 Yr. 8.500% 6/01/12 $976,570
210,000 GNMA 8.500% 9/15/23 222,800
406,481 GNMA 9.500% 10/15/18 438,619
134,851 FNMA 9.500% 5/01/18 145,127
-----------
Total Mortgage-Backed Securities
(Cost $13,766,442) 13,785,298
-----------
Municipal Obligations -- 0.6%
100,000 Cook County, Illinois,
Ser. A 5.000% 11/15/22 98,081
75,000 Detroit Michigan Sewerage Disposal
Revenue,
Ser. A 5.000% 7/01/22 73,577
165,000 Houston Texas Apartment Systems
Revenue 5.000% 7/01/25 161,677
215,000 King County Washington Refunding
Ser. A 5.000% 1/01/30 209,707
95,000 Massachusetts Bay Transit Authority,
Ser. A 5.000% 3/01/27 93,302
345,000 Massachusetts Turnpike Authority
Highway Systems Revenue,
Ser. A 5.000% 1/01/37 334,729
115,000 Nevada State, Ser. A 5.000% 5/15/28 112,720
100,000 North Texas Thruway Authority,
Systems Revenue 4.750% 1/01/22 95,033
115,000 Public Highway Authority Colorado
Revenue 5.000% 9/01/26 112,962
100,000 Washington D.C. Convention Center
Authority 5.000% 10/01/21 97,733
215,000 Washington State,
Ser. A 5.000% 1/01/23 210,586
90,000 Wayne Charter County Detroit,
Michigan Revenue, Ser. A 5.000% 12/01/28 87,279
-----------
Total Municipal Obligations
(Cost $1,705,242) 1,687,386
-----------
U.S. Treasury Securities -- 2.3%
735,000 U.S. Treasury Bond 5.500% 8/15/28 770,372
60,000 U.S. Treasury Bond 6.375% 8/15/27 69,000
410,000 U.S. Treasury Bond 9.250% 2/15/16 588,991
440,000 U.S. Treasury Note 4.750% 11/15/08 443,438
1,200,000 U.S. Treasury Note 5.625% 10/31/99 1,209,376
1,080,000 U.S. Treasury Note 5.750% 10/31/00 1,100,588
235,000 U.S. Treasury Note 5.750% 4/30/03 244,474
810,000 U.S. Treasury Note 5.750% 8/15/03 845,438
45,000 U.S. Treasury Note 5.875% 11/15/05 48,009
115,000 U.S. Treasury Note 6.375% 9/30/01 119,995
480,000 U.S. Treasury Note 6.750% 4/30/00 492,600
230,000 U.S. Treasury Note 7.500% 2/15/05 263,278
370,000 U.S. Treasury Note 8.000% 5/15/01 397,403
-----------
Total U.S. Treasury Securities
(Cost $6,587,002) 6,592,962
-----------
Total Fixed Income Securities
(Cost $49,866,014) $49,934,699
-----------
</TABLE>
5
<PAGE>
TIFF Multi-Asset Fund / Schedule of Investments December 31, 1998
<TABLE>
<CAPTION>
Number
of Shares Value +
<C> <S> <C> <C> <C>
Investment Companies -- 4.1%
100,000 Atlantis Japan Growth Fund* $366,000
73,343 Beacon Capital Partners Inc.*(b) 1,466,860
111,476 GMO Currency Hedged International Bond
Fund** 1,174,959
838,360 GMO International Bond Fund** 8,995,600
------------
Total Investment Companies
(Cost $12,449,440) 12,003,419
------------
Limited Partnerships -- 21.7%
Daystar Partners L.P.*(b)(c) 12,109,647
Euro-Partners Arbitrage Fund*(b)(c) 14,307,289
Farallon Capital Partners L.P.*(b)(c) 10,428,637
Lone Redwood L.P.*(b)(c) 8,170,942
The Value Realization Fund L.P.
(Canyon Partners)*(b)(c) 18,386,847
------------
Total Limited Partnerships
(Cost $63,573,297) 63,403,362
------------
Preferred Stocks -- 0.3%
325 Centaur Funding Corp., 9.080% 335,680
3,550 Citigroup Inc., 6.213% 188,150
6,120 Duke Realty Investments, 7.990% 309,443
------------
Total Preferred Stocks
(Cost $821,280) 833,273
------------
<CAPTION>
Expiration
Date
<C> <S> <C> <C> <C>
Warrants -- 0.1%
314,083 Electronic Resources Ltd.
(Singapore)*(c) 7/17/07 156,232
53,569 Queenstake Resources, Ltd.
(Canada)*(b)(c) 9/11/99 0
80,362 Queenstake Resources, Ltd.
(Canada)*(b)(c) 9/11/00 0
------------
Total Warrants
(Cost $33,048) 156,232
------------
Total Long Term Investments
(Cost $244,656,947) 237,965,906
------------
</TABLE>
<TABLE>
<CAPTION>
Principal Interest Maturity
Amount Rate Date Value +
<C> <S> <C> <C> <C>
Short Term Investments -- 17.1%
Repurchase Agreement -- 15.8%
$46,054,231 Investors Bank & Trust Company
Repurchase Agreement, issued 12/31/98
(proceeds at maturity $46,075,979)
(collateralized by $15,000,000 BA
Mortgage Securities, Ser. 1998-7,
Class A3, 6.250% due 8/25/23 with a
market value of $14,970,312; $176,881
FHR Ser. 1435, Class F, 6.662% due
12/15/22 with a market value of
$178,953; $16,000,000 FHR Ser. 1695,
Class EF, 6.613% due 12/15/23 with a
market value of $16,461,906;
$10,033,377 FNMA ARM, 7.554% due
10/1/23 with a market value of
$10,389,713; $5,525,585 FHLMC ARM,
7.381% due 10/1/24 with a market
value of $5,700,308; $645,028 FNMA
ARM, 7.190% due 7/1/24 with a market
value of $656,756)
(Cost $46,054,231) 4.250% 1/04/99 $46,054,231
------------
U.S. Treasuries -- 1.3%
1,015,000 U.S. Treasury Bill++ 4.300%# 4/15/99 1,003,268
1,725,000 U.S. Treasury Bill++ 4.360%# 3/25/99 1,708,402
515,000 U.S. Treasury Bill++ 4.370%# 2/25/99 511,801
770,000 U.S. Treasury Bill++ 4.450%# 2/04/99 767,136
------------
Total U.S. Treasuries
(Cost $3,988,966) 3,990,607
------------
Total Short Term Investments
(Cost $50,043,197) 50,044,838
------------
Total Investments
(Cost $294,700,144) -- 98.7% 288,010,744
Other assets in excess of
liabilities -- 1.3% 3,836,587
------------
Net Assets -- 100.0% $291,847,331
============
</TABLE>
6
<PAGE>
TIFF Multi-Asset Fund / Schedule of Investments December 31, 1998
Summary of Industry Classifications (as a % of total market value):
<TABLE>
<S> <C>
Banking 3.2%
Basic Industries 7.3
Consumer Cyclical 6.2
Consumer Non-Cyclical 3.1
Energy 6.4
Financial Services 6.5
Foods 0.6
Government Obligations 9.0
Industrial 6.4
Insurance 2.0
Limited Partnerships 22.1
Miscellaneous 2.5
Municipal Obligations 0.6
Mutual Funds 3.7
Repurchase Agreements 16.0
Technology 4.4
-----
Total 100.0%
=====
</TABLE>
+See Note 2 to the Financial Statements.
++Security or a portion thereof is held with a broker as initial margin for
financial futures contracts. See Appendix C to Notes to 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.
ADRAmerican Depository Receipts
ARMAdjustable Rate Mortgage
FHLMC
Federal Home Loan Mortgage Corporation
FNMAFederal National Mortgage Association
FHRFreddie Mac
FRNFloating Rate Note. Rate shown is the coupon rate at December 31, 1998.
GDRGlobal Depository Receipts
GNMAGovernment National Mortgage Association
MTNMedium Term Note
TBASecurity is subject to delayed delivery.
(a)Security exempt from registration under Rule 144A of the Securities Act
of 1933. These securities may be resold in transactions exempt from
registration, normally to qualified buyers. At December 31, 1998, the
aggregate value of the securities is $9,876,045 or 3.4% of net assets.
(b)Security is fair valued in good faith under procedures established by the
board of directors of the Fund.
(c)Restricted security.
(d)Coupon rate is 7.85% through September 2006, and 8.05% thereafter.
(e)Security is a step up bond which will pay 11.25% until maturity starting
8/15/99.
See accompanying Notes to Financial Statements.
7
<PAGE>
TIFF International Equity Fund December 31, 1998
[GRAPH APPEARS HERE]
<TABLE>
<CAPTION>
- --------------------------------------------------------------------------------------
Comparison of Change in Value of $100,000 Investment in TIFF International Equity Fund
and the MSCI All Country World Free ex US Index
- --------------------------------------------------------
Past performance is not predictive of future performance
- --------------------------------------------------------
MSCI All Country
TIFF International Equity Fund World Free ex US Index
<S> <C> <C>
*5/31/94 100000 100000
6/30/94 100600 100688
7/29/94 102600 102545
8/31/94 106600 106056
9/30/94 104700 103833
10/31/94 107500 106292
11/30/94 100800 101233
12/30/94 101081 101112
1/31/95 95712 96229
2/28/95 95509 95700
3/31/95 98648 101030
4/28/95 102701 104623
5/31/95 104828 104058
6/30/95 103815 102612
7/31/95 108887 108204
8/31/95 107252 104352
9/29/95 108172 106282
10/31/95 105822 103455
11/30/95 107048 105617
12/29/95 111031 109726
1/31/96 114212 110955
2/29/96 115546 110977
3/29/96 117495 113130
4/30/96 121702 117157
5/31/96 122318 115200
6/28/96 123241 115880
7/31/96 119548 111905
8/30/96 121200 112541
9/30/96 122852 115310
10/31/96 122646 114122
11/29/96 127933 118447
12/31/96 128729 117026
1/31/97 129046 114966
2/28/97 131158 117127
3/31/97 130736 116928
4/30/97 130102 117992
5/30/97 136966 125119
6/30/97 142352 132101
7/31/97 145203 134809
8/29/97 138940 124496
9/30/97 144990 130783
10/31/97 133739 119287
11/28/97 130589 117760
12/31/97 130203 119020
1/30/98 130975 122579
2/27/98 138478 130755
3/31/98 144878 135279
4/30/98 147637 136253
5/29/98 147417 133787
6/30/98 142231 133284
7/31/98 140658 134551
8/31/98 119927 115579
9/30/98 115469 113140
10/30/98 123605 124997
11/30/98 130775 131709
12/31/98 133804 136246
</TABLE>
*Commencement of operations.
- --------------------------------------------------------------------------------
Policy Considerations: The Fund is designed as a diversified vehicle for that
portion of a Member's assets committed to non-US stocks. Its benchmark (the
MSCI All Country World Free ex US Index) 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 about 8% (based on current index weights), but its
actual exposure at any given time could be higher or lower. The Fund is well
diversified across countries and currencies, an unsurprising fact in light of
its use of multiple managers.
Performance Evaluation: After falling sharply during the preceding quarter, the
MSCI All Country World Free ex US Index (the "Index") rebounded smartly during
4Q 1998, posting a US dollar ("USD") return of 20.4%. The benchmark's rebound
was aided by a 26.8% USD return in Japan, the second largest country in the
Index and a persistent loser for many quarters prior to the one just ended. Due
partly to its managers' skepticism that Japan has indeed "turned the corner,"
the Fund lagged the Index during 4Q 1998. Unfortunately, one trend that was
especially pronounced during 3Q 1998 did not shift into reverse during 4Q 1998:
very large capitalization growth stocks continued to trounce all other issues.
The Fund's managers as a group employ valuation criteria that have caused them
to underweight large growth stocks relative to the Index for some time. This
bias proved very profitable prior to 1998 but has proven very unprofitable over
the last 12 months, causing the Fund's annualized return since inception
(+6.6%) to fall slightly behind the comparable return for the Index (+7.0%).
Investment Performance (For Periods Ended December 31, 1998)
<TABLE>
<CAPTION>
Total Return**
--------------------------------------------------
Year Cumulative Since Annualized Since
Ended Inception (5/31/94) Inception (5/31/94)
--------------------------------------------------
<S> <C> <C> <C>
TIFF International Equity
Fund 3.0% 33.8% 6.6%
MSCI All Country World Free
ex US Index 14.5% 36.2% 7.0%
</TABLE>
- -------
** Total return includes the effects of the entry/exit fees received by the
Fund.
8
<PAGE>
TIFF International Equity Fund / Schedule of Investments December 31, 1998
<TABLE>
<CAPTION>
Number
of Shares Value +
<C> <S> <C>
Long Term Investments -- 94.9%
Common Stocks -- 88.5%
Europe -- 55.4%
Belgium -- 0.4%
2,294 Electrabel SA $1,002,588
------------
Denmark -- 0.4%
6,000 Bang & Olufsen Holding AS - Series B 365,923
2,500 Coloplast AS - Class B 297,155
2,340 De Sammensluttede Vognmano 205,973
3,750 Falck AS 303,560
------------
1,172,611
------------
Finland -- 1.5%
11,744 Konecranes International 518,497
50,000 Metsa-Serla OY - Class B (f) 407,142
5,100 Nokia OY - Class A 620,426
6,333 Nokian Renkaat OY 205,032
21,800 Outokumpo OY 200,184
15,140 Ponsse OY 502,042
12,300 Sampo Insurance Co., Ltd. - Class A 466,997
18,000 UPM-Kymmeme OY (f) 501,521
34,500 Valmet Corp. OY - Class A (f) 460,316
------------
3,882,157
------------
France -- 7.1%
3,000 ADA 246,927
7,000 Air Liquide 1,283,841
4,215 Alcatel Alsthom 515,873
1,564 Arkopharma 122,574
12,330 Atos* 2,947,533
7,454 Banque Nationale de Paris (f) 613,798
22,500 Bic 1,248,054
3,000 Bouygues Offshore SA 69,193
4,500 Brit Air 265,715
698 Carrefour Supermarche 526,931
4,628 Clarins SA* 331,488
6,661 Compagnie de Saint-Gobain 940,385
7,186 Dassault Systemes SA (f) 337,782
5,823 Elf Aquitaine 673,083
29,700 Financiere et Industrielle Gaz et Eaux* 1,578,346
300 Genset - Sponsored ADR* 8,213
1,500 Genset SA* (f) 115,411
5,260 Grand Vision 131,766
2,101 Guilbert 281,953
50,000 Lectra Systemes* 338,182
1,000 M6 Metropole Television 170,881
41,275 Michelin - Class B 1,650,646
1,000 NRJ SA 178,932
18,573 Pechiney SA - A Shares 606,505
2,610 Primagaz Cie 247,517
7,000 Scor SA 462,809
3,123 Serp Recyclage SA* 447,045
4,115 Societe Generale - Class A 666,358
1,520 Sodexho Alliance SA 339,972
1,375 Union du Credit-Bail Immobilier 200,516
34,400 Usinor SA 381,935
2,000 Vivendi 518,904
------------
18,449,068
------------
Germany -- 4.1%
3,900 Adidas-Salomon AG 423,354
3,460 Allianz AG 1,267,878
</TABLE>
<TABLE>
<CAPTION>
Number
of Shares Value +
<C> <S> <C>
26,800 Bayer AG $1,117,872
580 Bayerische Motoren Werke AG* 271,321
12,200 Bayerische Vereinsbank AG 954,840
800 Buderus AG 291,232
35,280 Fresenius Medical Care - ADR (f) 835,695
24,400 Hoechst AG 1,011,179
1,100 Holzmann (PH)* 173,174
6,000 Mannesmann AG 687,297
853 Marschollek, Lautenschlaeger Und Partner* 489,066
1,220 Rhoen-Klinikum AG 121,093
5,625 Rinol AG 146,748
19,300 RWE AG 1,056,210
10,000 SGL Carbon AG 599,736
12,500 Siemens AG 805,895
8,000 SKW Trostberg AG 203,910
6,000 VEBA AG 358,762
------------
10,815,262
------------
Greece -- 0.3%
26,750 Attica Enterprises SA 239,881
3,260 Chipita International 105,988
1,900 Goody's SA 50,571
4,000 Minoan Lines* 89,389
6,300 Sarantis SA 90,032
3,360 Sidenor SA 98,555
2,200 STET Hellas Telecommunications SA - ADR* 70,269
------------
744,685
------------
Ireland -- 0.7%
47,000 CBT Group plc - ADR* (f) 699,125
76,000 Independent Newspapers plc 305,502
5,800 IONA Technologies plc* (f) 220,400
20,270 Irish Continental Group plc 239,915
50,000 Unidare plc 126,548
218,000 Waterford Wedgewood Units 184,998
------------
1,776,488
------------
Italy -- 2.1%
60,000 Banca Fideuram SpA 429,111
14,000 Banca Popolare Commercio e Industria 281,804
47,000 Banco Popolare di Milano 426,497
12,500 Brembo SpA 146,325
57,006 Bulgari SpA 338,104
106,500 Eni SpA 698,918
5,000 Fila Holding SpA - ADR (f) 38,750
5,172 IFI Istituto Finanziario 94,379
23,600 Industrie Natuzzi SpA - ADR 587,050
100,900 Luxottica Group SpA - ADR (f) 1,210,800
160,000 Seat-Pagine Gialle SPA* 150,321
78,339 Seat-Pagine Gialle SPA -RNC* 60,046
92,300 Telecom Italia SpA 578,648
90,000 Unicredito Italiano SpA 531,452
------------
5,572,205
------------
Netherlands -- 5.6%
12,765 Aalberts Industries NV 329,573
8,000 Benckiser NV - Class B 523,822
5,087 CSM NV 293,548
7,444 Draka Holding NV 203,288
39,100 Elsevier NV 547,421
</TABLE>
9
<PAGE>
TIFF International Equity Fund / Schedule of Investments December 31, 1998
<TABLE>
<CAPTION>
Number
of Shares Value +
<C> <S> <C>
5,113 GTI Holding NV $124,116
34,039 IHC Caland NV 1,413,384
42,243 ING Groep NV 2,574,833
10,814 Internatio-Muller NV 267,688
11,870 Koninklijke Boskalis Westminster NV 191,462
15,600 Nedlloyd NV 211,765
8,400 Philips Electronics NV 563,428
24,900 Royal Dutch Petroleum Co. 1,239,366
44,300 Royal Dutch Petroleum Co. - NY Shares 2,120,863
34,050 Van Melle NV 2,302,023
5,118 Volker Wessels Stevin 99,990
7,100 Wolters Kluwer CVA 1,518,648
------------
14,525,218
------------
Norway -- 1.0%
8,333 Dolphin Interconn ASA (b) 74,997
10,000 NetCom ASA* (f) 259,962
300,000 Norsk Lotteridrift ASA* 787,763
25,000 Reiber & Son ASA - Class B 185,453
33,400 Schibsted Gruppen ASA 425,366
10,000 SE Labels ASA 59,082
37,000 Sensonor ASA* 97,157
49,000 Storebrand ASA 369,921
11,603 Tomra Systems ASA 380,851
------------
2,640,552
------------
Spain -- 2.8%
12,500 Acerinox SA 290,790
60,828 Banco Central Hispanoamer SA 721,441
36,240 Bankinter SA 1,334,097
10,000 Baron de Ley SA* 326,951
15,900 Centros Comerciales Pryca SA 492,433
4,000 Compania Espanola de Petroleos SA 148,378
19,000 Corp. Financiera Reunida SA* 276,167
10,500 Groupo Acciona SA 856,585
2,500 Hidroelectrica del Cantabrico SA 138,312
49,300 Iberdrola SA 921,317
30,000 Prosegur, CIA de Seguridad SA 349,476
20,072 Telefonica de Espana SA 891,492
18,375 Viscofan Industria Navarra de Envolturas Celulosicas
SA 593,660
------------
7,341,099
------------
Sweden -- 5.0%
30,000 ABB AB - Class B 319,248
3,191 Assa Abloy AB - Class B 122,404
12,313 Biora AB 83,036
11,000 BT Industries AB 160,614
162,525 Bure Investment AB 2,312,736
7,937 Dahl International AB 78,569
35,000 Electrolux AB - Class B 604,158
17,440 Ericsson LM - Class B 416,497
15,000 Hemkopskedjan AB - B Shares 155,912
13,500 Hoganas AB - Class B 221,339
47,100 Investor AB - Class B 2,133,094
179,450 IRO AB 1,820,813
30,000 Munksjoe AB 207,882
188,000 Nobel Biocare AB (144A) (d) 2,558,931
28,500 OM Gruppen AB 359,710
8,741 Scandic Hotels AB 322,319
30,000 Stora Kopparbergs Bergslags - Class A 330,384
9,000 Svenska Handelsbanken - Class A* 380,870
19,000 Volvo AB - B Shares 437,295
------------
13,025,811
------------
</TABLE>
<TABLE>
<CAPTION>
Number
of Shares Value +
<C> <S> <C>
Switzerland -- 7.3%
8,150 ABB Namen AG $1,912,058
323 Bachem Feinchemikalien AG* 468,321
143 Hilti AG - PC 97,000
150 Keramik Holding Laufen AG* 45,465
54 Kuoni Reisen Holdings AG 214,426
22,000 Nestle SA - ADR 2,394,647
1,137 Novartis AG 2,257,158
300 Phoenix Mecano AG 180,328
10,000 Publigroupe SA* 3,060,109
150 Sarna Kunststoff Holding AG* 215,847
10,000 Selecta Group (The) 2,768,670
400 Societe Generale de
Surveillance SA - Class B 391,985
2,650 Societe Generale de
Surveillance SA - Class R (f) 625,574
1,825 Stratec Holding AG - Class B 2,526,412
4,200 The Swatch Group AG 629,618
3,553 Union Bank of Switzerland AG* 1,092,434
250 Zehnder Holding AG - Class B 102,004
------------
18,982,056
------------
United Kingdom -- 17.0%
35,000 Abbot Group plc 103,971
60,000 Airtours plc 383,432
5,382 Arm Holdings plc* 114,422
78,882 Arriva plc 496,221
90,100 Associated British Foods plc 852,434
72,400 Associated British Ports Holdings plc 339,174
53,100 Autonomy Corporation plc* 199,125
32,748 Avesco Plc 172,490
18,600 Barclays plc 401,165
67,800 Bass plc 987,287
24,000 Bemrose Corp. plc 97,056
112,000 Berisford plc 332,707
238,277 BG plc 1,503,880
196,070 Blue Circle Industries plc 1,011,529
82,500 Boots Co. plc 1,405,230
50,000 Brands Hatch Leisure plc 128,560
72,000 British Aerospace plc 610,495
115,989 British Airways plc 782,250
37,000 British Petroleum Co. plc 552,639
30,000 BTG plc 174,741
166,562 BTR plc* 343,719
66,800 Capita Group plc 617,541
257,500 Centrica plc* 518,523
68,285 Clubhaus plc* 65,343
15,000 Cobham plc 171,371
65,800 Dennis Group plc* 514,670
75,000 Devro International plc 214,058
48,304 Diageo plc 549,851
55,600 EMI Group plc 371,969
26,000 Expro International Group plc 123,317
21,000 F.I. Group plc 114,805
40,000 Fibernet Group plc* 218,010
64,700 First Leisure Corp. plc 220,731
66,500 Flextech plc* 671,762
82,500 GKN plc 1,094,940
46,500 Glaxo Wellcome plc 1,600,328
22,400 Glaxo Wellcome plc - ADR 1,556,800
50,000 Goode Durrant plc 230,076
31,900 Granada Group plc 564,060
5,000 Granger Telecom* 52,500
</TABLE>
10
<PAGE>
TIFF International Equity Fund / Schedule of Investments December 31, 1998
<TABLE>
<CAPTION>
Number
of Shares Value +
<C> <S> <C>
87,800 Great Universal Stores plc $925,650
80,000 Halma plc 163,092
104,450 Hanson plc 829,583
152,000 Hays plc 1,334,356
30,165 Hyder plc 380,269
34,000 Imperial Chemical Industries plc 294,796
45,217 Jarvis Porter Group plc 77,131
365,000 JBA Holdings plc 1,123,751
85,000 Ladbroke Group plc 341,619
100,000 LucasVariety plc 333,672
32,812 Mackie International Group plc* (b) 5,188
80,000 Man E D & F Group plc 461,316
73,500 Mentmore Abbey plc 140,666
5,500 Msb International 31,121
15,600 NXT plc* 101,250
22,857 Oxford Molecular Group plc* 18,449
77,300 Pearson plc 1,534,707
129,000 PIC International Group plc 161,011
35,702 Provident Financial plc 525,825
22,500 Psion plc 216,242
80,000 Racal Electronic plc 461,982
80,000 Railtrack Group plc 2,091,567
190,000 Regent Inns plc 320,941
264,000 Rentokil Initial plc 1,990,250
138,700 Rio Tinto plc 1,613,464
10,486 Select Appointments Holdings plc 107,671
13,849 Serco Group plc 265,392
31,970 Seton Healthcare Group plc 445,587
5,000 Small Worldwide plc - ADR* 62,500
230,640 Stagecoach Holdings plc 918,316
338,900 Taylor Woodrow plc 848,816
320,833 Toad plc* 125,474
30,517 Torotrak plc* 43,422
85,000 Unigate plc 611,094
770,000 Victrex plc 2,191,252
36,700 Vodafone Group plc 596,103
20,075 Waste Recycling Group plc 139,482
309,100 WPP Group plc 1,881,433
------------
44,177,622
------------
Europe -- 0.0%++
10,300 Central European Media Enterprises - Class A* 67,594
------------
Total Europe (Cost $117,707,629) 144,175,016
------------
Pacific -- 23.3%
Australia -- 3.1%
180,900 Amcor Ltd. 774,131
257,897 Australia and New Zealand Banking Group Ltd. 1,690,338
48,296 Boral Ltd. $68,763
24,612 Broken Hill Proprietary Co., Ltd. 181,540
20,000 Caltex Australian Ltd. 49,096
475,191 CSR Ltd. 1,163,583
116,000 Eastern Aluminum Ltd. 98,953
470,956 Foster's Brewing Group Ltd. 1,277,494
52,849 Gio Australian Holdings Ltd. 173,843
74,891 National Australia Bank Ltd. 1,130,631
82,300 Orica Ltd. 428,809
160,000 Pasminco Ltd. 121,758
123,386 Renison Goldfields Consolidated Ltd. 208,235
</TABLE>
<TABLE>
<CAPTION>
Number
of Shares Value +
<C> <S> <C>
225,000 Santos Ltd. $604,801
299 Woolworths Ltd. 1,019
------------
7,972,994
------------
Hong Kong -- 4.6%
197,000 Cathay Pacific Airways Ltd. 195,807
1,190,000 Dairy Farm International Holdings Ltd. 1,368,500
56,000 Hang Seng Bank Ltd. 500,587
58,000 Hong Kong Aircraft Engineering Co. Ltd. 79,361
343,000 Hong Kong Electric Holdings Ltd. 1,040,481
280,432 Hong Kong & China Gas Co., Ltd. 356,563
5,062,073 Hung Hing Printing Group 1,976,632
181,000 Hutchison Whampoa Ltd. 1,279,189
265,126 Hysan Development Co. Ltd.* 395,281
270,812 Jardine Strategic Holdings Ltd.* 392,677
500,000 Johnson Electric Holdings 1,284,385
400,000 Li & Fung Ltd. 828,719
282,068 Mandarin Oriental International Ltd.* 177,703
342,000 National Mutual Asia Ltd. 256,051
209,000 Television Broadcasts Ltd. 539,571
794,000 Wharf Holdings Ltd. 1,158,166
------------
11,829,673
------------
Japan -- 12.1%
23,000 Amano Corp. 217,659
8,800 Canon Chemicals, Inc. 89,756
102,000 Canon, Inc. 2,184,745
114,000 Chiyoda Fire & Marine Insurance Co. 383,202
16,000 CSK Corp. 368,958
92,000 Dai-Ichi Kangyo Bank Ltd. 491,211
38,000 Daiichi Pharmaceutical Co. Ltd 643,388
67,000 Denso Co. Ltd. 1,241,951
36 East Japan Railway Co. 201,472
73,000 Eisai Co. Ltd 1,424,390
35,000 Fancl Corporation* 3,007,982
12,000 Fuji Electric Co. Ltd. 26,395
44,000 Fuji Oil 270,829
52,020 Fujitsu Denso Ltd. 694,296
56,000 Gakken Co. Ltd. 64,568
20,400 Hirose Electronics Co. Ltd. 1,431,166
270,000 Hitachi Ltd. 1,676,275
20,000 Intec, Inc. 182,173
127,000 Ishikawajima-Harima Heavy Industries 225,277
6,000 Ito-Yokado Co., Ltd. 420,399
760 Japan Tobacco, Inc. 761,685
18,000 Kao Corp. 407,095
8,000 Kirin Beverage Corp. 158,226
28,000 Kirin Brewery Co. Ltd. 357,605
88,000 Koito Manufacturing Co., Ltd. 373,854
66,000 Kurita Water Industries Ltd. 970,537
58,000 Matsushita Electric Industries Co. 1,028,310
133,000 Mitsubishi Corp. 766,741
94,000 Nippon Oil Co., Ltd. 328,479
148 Nippon Telegraph and Telephone Corp. 1,144,621
12,000 Nissho Electronics Corp. 77,694
34,000 Noritake Co., Ltd. 176,106
82,000 Osaka Gas Co., Ltd. 282,909
12,000 Roland Corp. (f) 298,004
46,000 Sankyo Seiko 125,659
62,000 Sanwa Bank Ltd. (f) 478,953
22,000 Sharp Corp. 198,829
38,000 Shiseido Co., Ltd. 489,366
11,000 Showa Aircraft Industry 35,317
</TABLE>
11
<PAGE>
TIFF International Equity Fund / Schedule of Investments December 31, 1998
<TABLE>
<CAPTION>
Number
of Shares Value +
<C> <S> <C>
26,000 Showa Shell Sekiyu K.K. $146,430
12,800 Sony Corp. 934,315
60,000 Stanley Electric Co., Ltd. 200,089
28,000 Sumitomo Forestry Co., Ltd. 208,603
26,000 Sumitomo Realty & Development 84,630
102,000 Sumitomo Trust & Banking 271,397
28,000 Sumitomo Warehouse (f) 123,175
102,000 The Furkukawa Electric Co., Ltd. 348,293
22 Toho Co. 3,020
51,000 Tokio Marine & Fire Insurance Co. 610,643
26,000 Tokyo Broadcasting System 291,246
26,000 Tokyo Electric Power Co. 643,370
428,000 Tokyo Gas Co. 1,127,415
28,000 Toppan Printing Co. 342,705
11,700 Torii Pharmaceutical Co., Ltd. 317,534
8,000 Toyo Seikan 136,089
322 West Japan Railway Co. 1,427,938
14,000 Yamaha Motor Co., Ltd. 90,519
116,000 Yokohama Bank Ltd. 278,812
20,000 Yushiro Chemical Industry 88,692
------------
31,380,997
------------
New Zealand -- 0.6%
451,700 Carter Holt Harvey Ltd.* 405,676
13,676 Telecom Corporation of New
Zealand IR* 29,984
241,100 Telecom Corporation of New
Zealand Ltd.* 1,050,828
527,400 Wrightson Ltd. (f) 117,023
------------
1,603,511
------------
Singapore -- 3.0%
240,000 Acer Computer International Ltd. 120,000
450,000 Courts Ltd. 173,340
209,350 Development Bank of Singapore 1,892,214
3,320,000 Electronic Resources Ltd. 3,020,928
136,391 Jardine Matheson Holdings Ltd. 351,889
46,000 Jurong Shipyard Ltd. 199,515
105,000 Overseas Union Enterprise Ltd. 208,917
148,300 Singapore Press Holdings 1,619,290
238,000 TIBS Holdings Ltd. 147,261
------------
7,733,354
------------
Total Pacific (Cost $63,084,951) 60,520,529
------------
Emerging Markets -- 6.4%
Argentina -- 0.2%
59,600 Quilmes Industrial SA 536,400
------------
Bermuda -- 0.3%
18,000 PartnerRe Holdings Ltd. $823,500
------------
China -- 0.0%++
1,039,000 The Guangshen Railway Co., Ltd. 119,365
------------
India -- 0.0%++
7,200 Shiriram Industries - GDR* 8,100
------------
Indonesia -- 0.2%
1,232,000 PT Citra Marga Nusaphala Persada* 43,436
940,000 PT Davomas Abadi* 48,205
120,000 PT Gudang Garam 179,231
74,500 PT Hero Supermarket* 9,551
</TABLE>
<TABLE>
<CAPTION>
Number
of Shares Value +
<C> <S> <C>
328,000 PT Lippo Bank $16,821
1,236,000 PT Matahari Putra Prima* 31,692
385,000 PT Panin Bank Indonesia* 19,744
268,000 PT Semen Gresik 285,179
---------
633,859
---------
Israel -- 2.4%
75,000 Orbotech Ltd.* 3,553,125
155,000 Tecnomatix Technlolgies Ltd.* 2,712,500
---------
6,265,625
---------
Malaysia -- 0.6% (b)(c)
85,000 Carsberg AS 195,053
197,000 Kumpulan Guthrie Berhad 101,610
117,000 Malayan Banking Berhad 189,663
108,000 Malaysian Airlines System Berhad 47,293
97,000 Perlis Plantations Berhad 79,642
272,000 Resorts World Berhad 250,813
35,000 Rothmans of Pall Mall Berhad 165,053
425,800 Sime Darby Berhad 390,839
330,000 Technology Resources
Industries - Class A 137,558
---------
1,557,524
---------
Mexico -- 1.0%
625,000 Desc Sociedad de Fomento
Industrial SA de CV 524,785
168,000 Grupo Financiero Banamex Accival SA de CV* 220,601
5,040 Grupo Financiero Banamex Accival SA de CV - Class L* 5,812
10,350 Grupo Televisa SA - GDR* 255,516
257,000 Kimberly Clark de Mexico
SA de CV 811,168
15,200 Telefonos de Mexico - Class L, ADR (f) 740,050
26,000 Vitro Sociedad Aninima - ADR (f) 118,625
---------
2,676,557
---------
Philippines -- 0.2%
208,000 San Miguel SA - Class B 402,581
---------
Portugal -- 0.2%
7,110 Brisa-Auto Estradas de Portugal SA 418,529
---------
South Africa -- 0.6%
6,209 Anglogold Ltd. - ADR (f) 120,958
8,800 De Beers Consolidated Mines Ltd. - ADR 112,200
96,000 Firstrand Ltd.* 104,852
133,000 Gencor Ltd. 224,005
4,545 Kersaf Investments Ltd. 13,879
311,089 LibLife Strategic Investments Ltd. 727,709
224,566 SA Iron & Steel Industrial Corp. Ltd. 40,497
2,863 South African Breweries Ltd. 48,317
7,212 South African Breweries Ltd. - ADR 121,495
---------
1,513,912
---------
</TABLE>
12
<PAGE>
TIFF International Equity Fund / Schedule of Investments December 31, 1998
<TABLE>
<CAPTION>
Number
of Shares Value +
<C> <S> <C>
Thailand -- 0.7%
37,000 Advanced Information Service Plc $220,469
33,000 Matichon Public Co. Ltd. 52,800
89,000 MBK Properties and Development Public
Co., Ltd. 51,558
246,000 National Finance & Securities Co., Ltd.* 78,041
120,000 Post Publishing Co., Ltd.* 152,276
47,200 The Siam Cement Co., Ltd.* 1,072,905
133,000 The Thai Farmers Bank, Ltd.* 234,814
------------
1,862,863
------------
Total Emerging Markets
(Cost $18,893,510) 16,818,815
------------
North America -- 3.3%
Canada -- 2.5%
38,000 Abitibi-Consolidated, Inc.* 345,274
70,000 Air Canada, Inc.* 278,122
24,000 Canadian Airlines Corp.* 29,700
26,234 Canadian Pacific Ltd. 495,167
350,000 Danier Leather Inc. 1,994,724
30,108 Hudson's Bay Co. 374,561
20,000 Imasco Ltd.* 425,975
107,872 Imperial Oil Ltd. 1,732,694
20,282 National Bank of Canada 327,615
46,001 Rogers Communications, Inc. - Class B* 402,990
27,000 Stelco, Inc. - Class A* 140,689
------------
6,547,511
------------
United States -- 0.7%
45,000 KLA-Tencor Corp.* 1,951,875
------------
Total North America
(Cost $7,961,159) 8,499,386
------------
Total Common Stocks
(Cost $207,647,249) 230,013,746
------------
Preferred Stocks -- 0.6%
Germany
116 Bayerische Mortoren Werke AG 54,264
720 Rhoen-Klinikum Vorzugsakt AG 73,408
6,325 Sto Vorzugs AG 1,479,399
------------
Total Preferred Stocks
(Cost $2,722,118) 1,607,071
------------
<CAPTION>
Expiration
Date
<C> <S> <C> <C>
Rights -- 0.0%++
22,656 Hong Kong & China Gas*
(Hong Kong) 9/30/99 0
6,560,000 PT Lippo Bank* (Indonesia) 1/1/99 841
------------
Total Rights (Cost $0) 841
------------
Warrants -- 0.0%++
48,000 Acer Computer
International Ltd.*
(Singapore) 7/31/01 3,640
20,000 Atlantis Japan Growth
Fund* (Japan) 4/30/01 2,200
16,000 Hysan Development Co.
Ltd.* (Hong Kong) 4/30/99 334
2,680 TEGE SA* (Switzerland) 6/20/01 31,145
39,700 Wharf Holdings,*
(Hong Kong) 12/31/99 3,280
------------
Total Warrants
(Cost $18,720) 40,599
------------
</TABLE>
<TABLE>
<CAPTION>
Number
of Shares Value+
<C> <S> <C> <C>
Comingled Investment Vehicles -- 5.8%
104,000 Atlantis Japan Growth Fund (Japan)* $380,640
Everest Capital Frontier Ltd. LP (b)(c) 4,184,001
25,400 Indonesian Development Fund, Ltd. (Indonesia)* 7,366
Investable Emerging Markets Country Fund LP
(b)(c) 10,178,412
40,000 The First Korea Smaller Companies Fund (Korea)* 218,000
------------
Total Comingled Investment Vehicles
(Cost $25,884,772) 14,968,419
------------
<CAPTION>
Principal Interest Maturity
Amount (a) Rate Date
<C> <S> <C> <C> <C>
Convertible Bond -- 0.0%++
JPY10,000,000 Sumitomo Wiring Systems (Japan)
(Cost $90,926) 0.900% 9/30/08 71,929
------------
Total Long Term Investments
(Cost $236,363,785) 246,702,605
------------
Short Term Investments -- 7.9%
Time Deposit -- 2.2%
5,716,676 BankBoston NA (e) (Cost
$5,716,676) 5.630% 1/4/99 5,716,676
------------
Repurchase Agreement -- 4.6%
11,820,528 Investors Bank & Trust Company Repurchase
Agreement, Issued 12/31/98 (proceeds at maturity
$11,826,110) (collateralized by $150,228 FHR
Ser. 1435 Cl -F 6.662%, due 12/15/22, market
value $151,987; $6,000,000 FNMA 6.244%, due
10/25/22, market value $6,234,964; $5,969,431
FNMA ARM 6.869%, due 5/1/27, market value
$6,025,031) (Cost
$11,820,528) 4.250% 1/4/99 11,820,528
------------
U.S. Treasury Securities -- 1.1%
1,165,000 U.S. Treasury Bill+++ 4.139# 4/15/99 1,151,534
1,000,000 U.S. Treasury Bill+++ 4.592# 5/6/99 985,224
825,000 U.S. Treasury Bill+++ 5.223# 2/4/99 821,931
------------
Total U.S. Treasury Securities
(Cost $2,957,220) 2,958,689
------------
Total Short Term Investments
(Cost $20,494,424) 20,495,893
------------
Total Investments -- 102.8%
(Cost $256,858,209) 267,198,498
Liabilities in excess of other assets -- (2.8%) (7,168,618)
------------
Net Assets -- 100.0% $260,029,880
============
</TABLE>
13
<PAGE>
TIFF International Equity Fund / Schedule of Investments December 31, 1998
Summary of Industry Classifications (as a % of total market value):
<TABLE>
<S> <C>
Basic Industries 6.5%
Consumer Cyclical 22.5
Consumer Non-Cyclical 7.7
Energy 4.1
Financial Services 18.0
Industrial 20.3
Miscellaneous 4.3
Repurchase Agreements 3.9
Technology 8.2
U.S. Government Securities 1.1
Utilities 3.4
-----
Total 100.0%
=====
</TABLE>
+See Note 2 to the Financial Statements.
++Round to less than 0.1%.
+++Security or a portion thereof is held with a broker as initial margin for
financial futures contracts. See Appendix C to Notes to Financial
Statements.
*Non-income producing security.
#Interest rate represents yield to maturity at the time of purchase
ADRAmerican Depositary Receipts
ARMAdjustable Rate Mortage
FHRFreddie Mac
FNMAFederal National Mortgage Association
GDRGlobal Depository Receipts
IRInvestment Receipts
JPYJapanese Yen
(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)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 December 31, 1998 the
aggregate value of these securities was $2,558,931 or 1.0% of net assets.
(e)Investment from cash collateral received for securities on loan at
December 31, 1998.
(f)Security or portion thereof was on loan at December 31, 1998.
See accompanying Notes to Financial Statements
14
<PAGE>
TIFF Emerging Markets Fund December 31, 1998
[GRAPH APPEARS HERE]
<TABLE>
<CAPTION>
- ----------------------------------------------------------------------------------
Comparison of Change in Value of $100,000 Investment in TIFF Emerging Markets Fund
and the MSCI Emerging Markets Free Index
- --------------------------------------------------------
Past performance is not predictive of future performance
- --------------------------------------------------------
TIFF Emerging Markets Fund MSCI Emerging Markets Free Index
<S> <C> <C>
*5/31/94 100000 100000
6/30/94 97100 97067
7/29/94 101000 103053
8/31/94 107900 115727
9/30/94 109000 116940
10/31/94 106500 114676
11/30/94 102100 108576
12/30/94 93032 99781
1/30/95 80950 86513
2/28/95 79540 86721
3/31/95 79439 87065
4/28/95 82762 90809
5/31/95 86286 95400
6/30/95 87897 95487
7/31/95 90313 97492
8/31/95 89004 95062
9/29/95 88954 94479
10/31/95 85227 90772
11/30/95 82909 89067
12/29/95 85227 92851
1/31/96 91069 99364
2/29/96 90566 97622
3/29/96 90566 98204
4/30/96 92480 101783
5/31/96 92077 101080
6/28/96 91674 101495
7/31/96 87242 94371
8/30/96 87847 96652
9/30/96 87847 97358
10/31/96 85631 94687
11/29/96 86337 96161
12/31/96 87372 96486
1/31/97 93042 102989
2/28/97 97092 107333
3/31/97 95978 104243
4/30/97 96484 104060
5/30/97 100331 106756
6/30/97 107823 112248
7/31/97 112480 113706
8/29/97 106203 99104
9/30/97 108235 101699
10/31/97 89567 84928
11/28/97 85997 81770
12/31/97 87028 83552
1/30/98 81219 76936
2/27/98 87889 84923
3/31/98 90148 88323
4/30/98 89933 87187
5/29/98 78315 74970
6/30/98 69386 66953
7/31/98 71000 68839
8/31/98 51529 48676
9/30/98 48929 51624
10/30/98 53732 56998
11/30/98 58870 61683
12/31/98 57976 60558
</TABLE>
*Commencement of operations.
- --------------------------------------------------------------------------------
Policy Considerations: Despite rebounding in late 1998, emerging markets as a
group (as measured by the MSCI Emerging Markets Free Index) have fallen 39%
since the Fund's inception on May 31, 1994. The S&P 500 has risen 197% over the
same period. Panicked selling by investors belatedly discovering that their
time horizons are shorter than they had supposed has created opportunities for
truly long-term investors in emerging markets. Interestingly, trade buyers
(e.g., GE, Gillette, and other multinationals) are using the current downdraft
in emerging markets to accelerate their acquisitions of cheap businesses. Thus,
US-based portfolio investors who bail out of emerging markets and plow the
proceeds into the S&P 500 are effectively selling at well below 100 cents on
the dollar and reinvesting (via purchases of GE, Gillette, and other
multinationals included in the S&P 500) at well above 100 cents on the dollar.
(The S&P trades at roughly four times book value.) But for foundations that
have not invested in emerging markets previously, the wisest course might be to
eschew "pure plays" in favor of diversified funds whose managers are permitted
but not compelled to invest in emerging markets (e.g., the TIFF International
Equity Fund).
Performance Evaluation: Emerging markets rebounded impressively from their 3Q
1998 swoon during 4Q 1998 (MSCI Emerging Markets Free Index up 17.3%), and the
Fund more than kept pace, outperforming the Index by 120 basis points. The
Fund's lead manager, Emerging Markets Management, outperformed the Index all
three months, generating a quarterly return of 22.9%. A substantial narrowing
of discounts on emerging market closed-end funds (24% on average at year-end
versus 31% on October 1) put a decent wind at the backs of the two managers
that specialize in such funds (City of London and Lazard Freres). Alas, both
managers tacked slightly off-course with respect to country bets and individual
security selection, and both generated index-like returns. The Fund's very
small investment in the well-known investment partnership Everest Frontier
Capital produced a -3.4% return during the quarter, ending a year that
Everest's principals and outside investors will not soon forget.
Investment Performance (For Periods Ended December 31, 1998)
<TABLE>
<CAPTION>
Total Return**
---------------------------------------------------
Year Cumulative Since Annualized Since
Ended Inception (5/31/94) Inception (5/31/94)
---------------------------------------------------
<S> <C> <C> <C>
TIFF Emerging Markets Fund (33.4%) (42.0%) (11.2%)
MSCI Emerging Markets Free
Index (27.5%) (39.4%) (10.4%)
</TABLE>
- -------
** Total return includes the effects of entry/exit fees received by the Fund.
15
<PAGE>
TIFF Emerging Markets Fund / Schedule of Investments December 31, 1998
<TABLE>
<CAPTION>
Number
of Shares Value +
<C> <S> <C>
Long Term Investments -- 94.7%
Common Stocks -- 72.6%
Asia -- 24.5%
China -- 1.7%
218,000 Beijing Datang Power
Generation Co., Ltd. $65,426
35,000 China Fund, Inc. 288,750
102,500 Greater China Fund, Inc. 627,813
-----------
981,989
-----------
Hong Kong -- 2.1%
536,000 Anhui Expressway Co., Ltd. -Class H 62,962
393,000 Guangdong Kelon Electric
Holding - Class H 350,037
186,000 GZI Transportation Ltd. 36,495
35,300 Johnson Electric Holdings, Ltd. 90,678
396,875 Lung Kee (Bermuda) Holdings Ltd. 46,107
1,841,655 Moulin International Holdings, Ltd. 223,464
3,500 Peak International Ltd.* (f) 29,312
119,000 Road King Infrastructure Ltd. 87,558
302,000 Shenzhen Expressway Co., Ltd. 70,170
416,000 United Pacific Industries Ltd. 36,515
111,000 Varitronix International Ltd. 207,760
-----------
1,241,058
-----------
Indonesia -- 1.7%
650,000 EFM Edinburgh Java Trust plc* 83,834
10,200 Gulf Indonesia Resources Ltd.* 66,300
130,500 PT Astra International Inc.* 12,130
235,000 PT Bakrie & Brothers* 6,779
84,500 PT Hanjaya Mandala Sampoerna* 57,146
478,700 PT Indah Kiat Pulp & Paper Corp.* 133,484
483,880 PT Indorama Synthetics* 88,401
3,700 PT Indosat - ADR* 45,094
1,035,720 PT Mulia Industrindo* 49,794
284,000 PT Pabrik Kertas Tjiwi Kim -Class F* 75,551
136,800 PT Petrosea* 29,377
153,000 PT Ramayana Lestari Sentosa 37,760
542,500 PT Telekomunikasi Indonesia 187,788
14,100 PT Telekomunikasi Indonesia -ADR (f) 91,650
-----------
965,088
-----------
Korea -- 5.7%
3,400 Dae Duck Electronics Co* 260,667
2,916 Dongah Tire Industry Co* 116,883
9,113 Hyundai Heavy Industries 228,584
18,000 Korea Fund, Inc.* (f) 166,500
9,730 Pohang Iron and Steel Co., Ltd. 601,436
7,300 Pusan Steel Pipe Corp.* 62,658
11,625 Samsung Electronics Co. 781,781
1,080 Samsung Fire & Marine Insurance 405,000
20,000 Schroder Korea Fund* 105,000
837 South Korea Mobile Telecommunications Corp. Ltd.* 610,243
-----------
3,338,752
-----------
Malaysia -- 1.5% (b)(c)
71,000 IJM Corp. Berhad 35,724
104,000 Jaya Tiasa Holdings Berhad 110,568
</TABLE>
<TABLE>
<CAPTION>
Number
of Shares Value +
<C> <S> <C>
113,000 Malakoff Berhad $211,726
188,000 Malaysian International Shipping Berhad 197,895
74,000 Malaysian Pacific Industries Berhad 81,010
11,000 Oriental Holdings Berhad 13,548
25,250 Perlis Plantations Berhad 20,732
213,000 PPB Oil Palms Berhard 130,491
102,000 Selangor Properties Berhad 35,649
28,000 Sime UEP Properties Berhad 21,221
-----------
858,564
-----------
Philippines -- 1.3%
235,840 Ayala Land, Inc. - Class B 66,948
14,300 Benpres Holdings Corp. - GDR* 26,455
9,580 Benpres Holdings Corp.
(144A) -GDR* (d) 31,032
157,000 Cosmos Bottling Corp. 14,788
1,499,000 Digital Telecom Philippines, Inc.* 36,750
36,900 Equitable Banking Corp. 55,707
61,100 First Philippine Fund, Inc.* 358,963
8,127 First Philippine Holdings Corp. 4,404
301,875 Fortune Cement Corp.* 12,620
510,740 Music Corp.* 42,177
830,000 Philex Mining Corp. - Class B* 6,640
2,652 Philippine Long Distance Telephone Co. - ADR* (f) 68,786
1,245,000 PICOP Resources, Inc.* 15,101
-----------
740,371
-----------
Singapore -- 0.2%
8,400 Creative Technology Ltd. 126,000
9,000 GP Batteries International Ltd. 19,218
-----------
145,218
-----------
Taiwan -- 5.7%
28,333 Compal Electronics, Inc.* 92,476
106,400 Hon Hai Precision Industry* 588,722
87,355 Nan Ya Plastics Corp.* 112,690
46,000 Phoenixtec Power Co., Ltd.* 90,799
110,000 ROC Taiwan Fund 680,625
29,080 Siliconware Precision Industries Co.* 51,525
11,066 Siliconware Precision Industries Co. - GDR* (f) 116,194
6,309 Synnex Technology International Corp. - GDR* (f) 111,985
59,800 Taiwan Equity Fund, Inc. 538,200
15,000 Taiwan Fund, Inc. 187,500
280,000 Taiwan Securities Investment Trust Co.* 322,688
11,600 Taiwan Semiconductor* 25,602
92,001 United Microelectronics Corp., Ltd.* 115,252
227,466 Yageo Corp.* 294,143
-----------
3,328,401
-----------
Thailand -- 2.2%
13,500 Alucon Manufacturing Co., Ltd. 27,931
45,500 Bangkok Bank Public Co., Ltd.* 94,138
255,858 First Pacific Land, Ltd. * 30,350
50,900 Hana Microelectronics Public Co., Ltd. * 118,650
102,500 KCE Electronics Public Co., Ltd. * 226,207
94,400 K.R. Precision Public Co., Ltd. * 46,223
117,900 MDX Co., Ltd.* 5,854
73,100 Precious Shipping Ltd.* 15,124
12,200 PTT Exploration & Production Public Co., Ltd.* 86,157
</TABLE>
16
<PAGE>
TIFF Emerging Markets Fund / Schedule of Investments December 31, 1998
<TABLE>
<CAPTION>
Number
of Shares Value +
<C> <S> <C>
1,916,000 Ruam Pattana Fund II* $253,705
152,900 Saha-Union Corp., Ltd. 63,269
231,600 Shinawatra Satellite Public Co., Ltd.* 116,599
36,300 Siam Syntech Construction Public Co. Ltd.* (b) 501
190,100 Thai Telephone & Communication* 28,318
22,300 Thai-German Ceramic Industry Co., Ltd.* 5,844
85,700 The Thai Farmers Bank, Ltd.* 151,305
-----------
1,270,175
-----------
Asian Region -- 2.4%
86,300 Asia Tigers Fund, Inc. 571,738
1,025,000 Edinburgh New Tiger Trust* 196,168
450,000 Govett Asian Smaller Co. 518,727
80,000 Invesco Asia Trust 54,253
12,200 Siam Investment Fund* 61,000
-----------
1,401,886
-----------
Total Asia (Cost $21,075,890) 14,271,502
-----------
Latin America -- 22.4%
Argentina -- 2.2%
36,000 Argentina Fund, Inc. 324,000
12,800 Banco Rio de la Plata - ADR (f) 166,400
19,895 CEI Citicorp Holdings SA* 66,114
19,300 Compania Naviera Perez Companc 81,716
23,112 Dragados y Construcciones Argentina - Series B* 36,552
1,456 Inversiones y Representaciones -GDR 40,495
26,057 Inversiones y Representaciones SA (144A) (d) 71,464
7,200 Nortel Inversora SA - ADR (f) 115,200
13,900 YPF-Sociedad Anonima - ADR 388,331
-----------
1,290,272
-----------
Brazil -- 2.1%
30,740,000 Avipal SA - Avicultura e Agropecuaria 43,036
48,000 Brazil Fund, Inc. 522,000
15,000 Brazilian Equity Fund 55,313
250,000 Brazilian Smaller Companies Investment Trust plc 143,750
9,100 Cia Paranaense Energy - ADR 64,838
8,900,000 Embratel Participacoes SA* 77,359
104,239 Gerdau Metalurgica SA 1,730
590,000 Saneamento Basico do Estado de Sao Paulo 44,690
8,900,000 Telecelular Sul Participacoe 8,252
8,900,000 Telecentro Oeste Celular Par* 6,999
380,000 Telecommunicacoes de Sao Paulo SA 32,718
8,900,000 Telemig Celular Participacoes* 6,262
8,900,000 Telenordeste Celular Participacoes 4,494
8,900,000 Telenorte Celular Participacoes 2,873
8,900,000 Telenorte Leste Participacoes 72,939
8,900,000 Telesp Cellular Participacoes 38,311
8,900,000 Telesp Participacoes SA 114,197
-----------
1,239,761
-----------
</TABLE>
<TABLE>
<CAPTION>
Number
of Shares Value +
<C> <S> <C>
Chile -- 3.1%
24,900 A.F.P. Provida SA - ADR (f) $334,594
26,100 Chilectra SA - ADR 577,995
10,600 Compania Cia de Telecomunicaciones de Chile SA - ADR
(f) 219,287
11,800 Cristalerias de Chile - ADR 154,875
10,300 Enersis SA - ADR 265,869
5,400 Laboratorio Chile SA - ADR 77,625
25,100 Masisa SA - ADR 160,012
-----------
1,790,257
-----------
Colombia -- 1.3%
79,636 Bavaria 400,749
3,950 Cementos Paz del Rio - ADR* 29,482
51,016 Exito* 110,425
71,350 Pavco SA* 3,936
80,832 Suramericana de Seguros SA 183,567
-----------
728,159
-----------
Mexico -- 8.3%
10,300 Acer Computec Latino Americana (144A) - ADR (d)* 16,738
84,082 Cemex SA de CV 179,902
16,000 Cemex SA de CV - Class B 39,494
131,000 Consorcio ARA SA de CV* 311,431
57,000 Corporacion GEO SA de CV -Series B* 158,574
33,880 Corporacion Interamericana de Entretenimiento SA* 92,540
4,517 Corporacion Interamericana de Entretenimiento SA -
Class L* 9,368
26,600 Cydsa SA 25,134
118,000 Embotelladoras Argos-Arsab 130,116
20,000 Emerging Mexico Fund, Inc.* 116,250
34,300 Empresas ICA SA - ADR (f) 154,350
94,000 Ingenieros Civiles Asociados SA 70,369
98,000 ECE SA* 27,561
14,700 Fomento Economico Mexicano SA de CV - ADR (f) 391,388
66,000 G. Accion SA de CV - Series B* 31,381
9,900 Grupo Casa Autrey SA de CV -ADR 67,444
70,000 Grupo Casa Autrey SA de CV 45,038
214,000 Grupo Corvi SA (144A) (d) 30,309
311,000 Grupo Financiero Banamex Accival SA de CV* 408,374
324,845 Grupo Financiero Banorte - Series B* 279,330
57,000 Grupo Industrial Maseca SA de
CV - Series B 46,130
64,000 Grupo Posadas SA - L Shares* 27,194
216,428 Grupo Posadas SA - Series A* 89,774
6,100 Grupo Posadas SA (144A) -GDR (d)* 50,578
14,800 Grupo Televisa SA - GDR* 365,375
6,000 Grupo Televisa SA - Series CPO* 74,901
15,000 Grupo Tribasa SA de CV - ADR* 25,312
63,000 Grupo Tribasa SA de CV* 54,810
127,000 Mexico Fund, Inc. 1,420,813
10,900 TV Azteca SA de CV - ADR 72,894
-----------
4,812,872
-----------
</TABLE>
17
<PAGE>
TIFF Emerging Markets Fund / Schedule of Investments December 31, 1998
<TABLE>
<CAPTION>
Number
of Shares Value +
<C> <S> <C>
Peru -- 0.6%
17,600 Banco Wiese $9,428
8,200 Banco Wiese - Sponsored ADR 15,375
36,584 Cementos Norte Pacasmayo SA 37,106
10,642 Compania de Minas Buenaventura SA 50,596
183,382 Enrique Ferreyros SA* 165,649
7,077 Minas Buenaventura - ADR 92,001
7,031 Sedna Geotech, Inc.* 870
-----------
371,025
-----------
Venezuala -- 0.5%
42,500 Bancaracas Mercados Capital -Class A* 22,607
391,123 Electricidad de Caracas 169,001
28,248 Fondo de Valores SACA - ADR* 95,704
4,667 International Briquettes Holding,
Inc. - ADR* 19,251
153 Siderurgica Venazolana Sivensa SACA (144A) - ADR (d) 567
43,716 Siderurgica Venezolana Sivensa -Class A 2,829
2,895 Sudamtex de Venezuela
(144A) -ADR (d)* 2,895
10,920 Venezolana Pulpa y Papel, B Shares - GDR* 1,074
-----------
313,928
-----------
Latin American Region - 4.3%
400,000 Edinburgh Inca Trust plc* 103,180
712,500 F&C Latin American Investment Trust* 815,812
26,900 Latin American Discovery Fund, Inc. 166,444
67,300 Latin American Equity Fund, Inc. 483,719
1,250,000 Morgan Grenfell Latin American
Trust plc* 930,912
-----------
2,500,067
-----------
Total Latin America (Cost $20,204,311) 13,046,341
-----------
Europe and Middle East -- 14.1%
Croatia -- 0.2%
5,000 Pliva d.d. - GDR 82,528
1,800 Pliva d.d. (144A) - GDR (d) 29,880
-----------
112,408
-----------
Czech Republic -- 1.4%
7,500 Ceske Radiokomunikace - GDR (Reg S)* 241,875
4,450 CKD Praha Holding AS* 18,459
667 Deza Valasske Mezirici AS 11,890
5,685 Sporitelni Privatizacni Cesky* 73,873
10,486 Sporitelni Vynosovy Investic 73,021
29,756 Zivnobanka - Investicni Fond 403,019
-----------
822,137
-----------
Egypt -- 0.3%
5,714 Arab International Construction* 38,546
1,800 Egypt Pharmaceuticals 90,513
500 Heliopolis Housing* 39,366
-----------
168,425
-----------
Greece -- 2.3%
1,232 Alpha Credit Bank 128,614
8,666 Attica Enterprises SA 77,712
8,806 General Construction SA 45,619
40,500 Greek Progress Fund S.A. 616,399
</TABLE>
<TABLE>
<CAPTION>
Number
of Shares Value +
<C> <S> <C>
4,171 Hellenic Telecommunications
Organization SA $111,018
1,454 National Bank of Greece SA 327,267
-----------
1,306,629
-----------
Hungary -- 1.5%
2,014 EGIS Rt. 45,663
30,490 Matav Rt. 173,668
18,430 Mol Magyar Olaj - Es Gazipari 503,559
3,224 OTP Bank Rt.* 160,961
-----------
883,851
-----------
Israel -- 1.4%
45,000 Bank Hapoalim Ltd. 81,550
3,720 ECI Telecommunications Ltd. 132,525
1,890 Elite Industries Ltd.* 57,768
149,058 Israel Fund (The) plc* 117,011
16,600 Koor Industries Ltd. - ADR* 289,462
5,400 NICE-Systems Ltd. - ADR (f)* 116,775
-----------
795,091
-----------
Lebanon -- 0.1%
6,400 Lebanon Holdings* 40,000
-----------
Lithuania -- 0.0% ++
1,500 Birzai Milk - GDR* 9,449
5,780 Rokiskio Surio - ADR (Reg S)* 14,305
-----------
23,754
-----------
Poland -- 1.9%
3,261 Bank Ochrony Srodowiska SA 55,358
1,360 Bank Slaski SA 70,619
10,770 Elektrim Spolka Akcyjna SA 116,765
71,860 Flemings Poland Funds Ltd.* 492,241
8,025 Mostostal Gdansk SA* 32,741
11,090 Mostostal Warszawa SA* 56,004
9,300 Softbank SA - GDR (Reg S)* 246,450
1,000 Wielkopolski Bank Kredytowy SA 6,305
-----------
1,076,483
-----------
Portugal -- 0.5%
19,800 Portugal Fund, Inc. 309,375
-----------
Romania -- 0.1%
1,900 Banca Turco Romana - GDR* 9,690
124,827 Rolast SA* 6,953
64,310 Terapia SA* 34,356
-----------
50,999
-----------
Russia -- 0.8%
20,000 Fleming Russia Securities Fund* 66,000
5,500 Gazprom (144A) - ADR (d) 46,613
12,400 JSC Surgutneftegaz - ADR* 39,991
14,700 Lukoil Oil Co. - ADR* (f) 227,869
New Century Fund XI, LP (b)(c) 94,045
-----------
474,518
-----------
</TABLE>
18
<PAGE>
TIFF Emerging Markets Fund / Schedule of Investments December 31, 1998
<TABLE>
<CAPTION>
Number
of Shares Value +
<C> <S> <C>
Slovenia -- 0.0% ++
800 SKB Banka (144A) - GDR (d) $5,760
-----------
Turkey -- 1.0%
15,131,422 Akbank T.A.S. 307,276
3,056,000 Aksigorta AS 93,088
2,378,000 Dogan Sirketler Grubu Holdings 16,600
363,938 Enka Holding Yatirim AS 35,220
8,613,000 Haci Omer Sabanci Holding AS 132,546
16,000 Usas Ucak Servisi AS 22,846
-----------
607,576
-----------
European Region -- 2.6%
200,000 Advance Developing Markets Trust* 277,921
270,000 Baring Emerging Europe Trust* 355,050
800,000 Central European Growth Fund* 512,574
1,445 Global Telesystems Group, Inc. (f)* 80,559
12,690 Julius Meinl International 285,606
81,175 Nelson Gold Corp. Ltd.* 7,402
-----------
1,519,112
-----------
Total Europe and Middle East (Cost $10,382,705) 8,196,118
-----------
India Sub-Continent -- 5.4%
India -- 5.0%
42,200 Bharat Heavy Electricals Ltd. 261,238
23,000 Bharat Petroleum Corp 126,440
6,000 Cipla Ltd. 121,464
27,840 Gujarat Ambuja Cements - GDR 177,480
19,920 Hindalco Industries Ltd. - GDR 233,562
45,800 Hindustan Petroleum Corp., Ltd. 253,833
2,000 Housing Development Finance Corp. Ltd.* 102,711
17,400 Indian Hotels Co., Ltd. - (144A) GDR (Reg S) (d)* 152,250
8,020 Larsen & Toubro Ltd. - GDR (Reg S) (f) 57,143
2,600 Larsen & Toubro Ltd. (144A)
- GDR (d) 19,640
48,100 Mahanagar Telephone Nigam Ltd. (Reg S) 207,729
5,800 Mahanagar Telephone Nigam Ltd. - GDR 70,760
13,000 NIIT Ltd.* 497,613
19,500 Pentafour Software and Export Ltd. 255,360
17,800 Satyam Computer Services 305,268
20,356 Tata Engineering & Locomotive Ltd. - GDR* 81,424
-----------
2,923,915
-----------
Pakistan -- 0.3%
30,194 Engro Chemicals Pakistan Ltd. 54,647
39,400 Hub Power Co., Ltd. 10,108
41,666 Pakistan State Oil Co., Ltd. 65,685
183,280 Sui Northern Gas Pipelines* 33,189
-----------
163,629
-----------
Sri Lanka -- 0.1%
4,693 Aitken Spence & Co., Ltd. 7,307
6,300 Development Financial Corp. of Ceylon 13,631
15,221 National Development Bank 28,484
-----------
49,422
-----------
Total Indian Sub-Continent (Cost $4,488,713) 3,136,966
-----------
</TABLE>
<TABLE>
<CAPTION>
Number
of Shares Value +
<C> <S> <C>
Africa -- 5.2%
Botswana -- 0.2%
117,800 Sechaba Investment Trust $135,894
-----------
Ghana -- 0.2%
13,700 Ashanti Goldfields Co., Ltd. - GDR 128,437
-----------
Mauritius -- 0.2%
20,000 Mauritius Fund, Ltd. 120,000
-----------
South Africa -- 4.6%
7,900 Amalgamated Banks of South Africa 37,497
8,100 Anglo American Corp. of South Africa Ltd. 228,476
42,089 Billiton plc 83,778
6,800 Billiton plc - ADR 13,524
11,847 Brait SA* 68,426
223,330 CorpGro Ltd. 155,776
165,800 Creditsure Holdings Ltd* 73,333
152,900 Illovo Sugar Ltd. 162,577
14,632 Liberty Life Association of Africa 201,632
54,400 Molope Group Ltd* 49,513
21,855 New South Africa Fund, Inc. 200,793
720,000 Old South Africa Trust 934,632
159,300 Protea Furnishers Ltd.* 66,398
16,242 Sasol Ltd. 61,481
8,004 South African Breweries Ltd. 135,079
266,121 Sun International Ltd. 43,916
79,069 Super Group Ltd. 139,225
-----------
2,656,056
-----------
Zimbabwe -- 0.0% ++
200,000 Trans Zambezi Industries Ltd. (144A) - GDR (d)* 6,000
-----------
African Region -- 0.0% ++
2,400 Morgan Stanley Africa Investment Fund, Inc. 19,950
-----------
Total Africa (Cost $4,248,244) 3,066,337
-----------
General Emerging Markets -- 1.0%
450,000 Foreign & Colonial Emerging Markets plc* 297,684
16,300 Morgan Stanley Emerging Markets Fund, Inc. 131,419
100,000 Templeton Emerging Markets Investment Trust plc 147,282
-----------
Total General Emerging Markets (Cost $793,621) 576,385
-----------
Total Common Stocks (Cost $61,193,484) 42,293,649
-----------
Limited Partnerships -- 17.9%
Everest Capital Frontier Ltd. LP (b)(c)* 1,513,361
Explorador Fund, L.P. (b) (c)* 2,127,841
Investable Emerging Markets Country Fund LP (b) (c) 6,763,123
-----------
Total Limited Partnerships (Cost $15,122,143) 10,404,325
-----------
</TABLE>
19
<PAGE>
TIFF Emerging Markets Fund / Schedule of Investments December 31, 1998
<TABLE>
<CAPTION>
Number
of Shares Value +
<C> <S> <C> <C>
Preferred Stocks -- 3.9%
Brazil -- 3.8%
5,100,000 Banco do Estada de Sao Paulo SA $ 211,093
440,000 Cia Cimento Portland Itau 50,083
3,187,000 Cia Electricidade Bahia 108,142
2,470,000 Cia Energetica Brasilia 55,002
1,368,666 Cia Energetica do Brasilia - Class B 27,192
89,000,000 Cia Energetica do Ceara - Class A 221,026
323,912 Cia Riograndense Telecom 116,640
400,000 Cia Tecidos Norte de Mina 43,046
5,500,000 Embratel Participacoes* 75,124
319,000 Empresa Brasileira de Compressores SA 92,414
289,000 Industrian Klabin de Papel e Celulose SA 55,025
514,000 Iven SA* 102,132
97,800 Marcopolo SA 89,056
3,444,591 Metalurgica Gerdau SA 57,030
1,996,000 Patroleo Brasileiro SA 226,368
41,600,000 Tele Nordeste Celular 37,881
25,300,000 Telecelular Sul Participacoes 42,725
1,400,000 Telecentro Oest Celular* 1,472
910,000 Telecommunicacoes Sao Paulo 124,070
21,800,000 Telemig Celular Parricipacoes* 24,182
22,500,000 Telenorte Leste 281,250
278,000 Telepar Celular SA - Class B 17,486
1,020,000 Telerj Cellular SA* 16,043
1,560,000 Telerj Celular SA - Class B 36,805
941,714 Telesp Celular SA - Class B 41,395
1,400,000 Telesp Participacoes SA 31,871
-----------
2,184,553
-----------
Hungary -- 0.1%
1,040 OTP Bank Rt.* 32,241
-----------
Total Preferred Stocks (Cost $3,606,175) 2,216,794
-----------
<CAPTION>
Expiration
Date
<C> <S> <C> <C>
Warrants -- 0.2%
75,000 F & C Latin American Investment Trust
(Latin America)* 7/31/00 38,625
10,000 GP Batteries International, (Singapore)* 11/15/00 7,850
7,600 GZI Transport Ltd. (Hong Kong)* 1/29/99 10
250,000 Morgan Grenfell Latin American Trust plc
(Latin America)* 6/30/10 54,086
58,506 Moulin International Holdings Ltd.
(Hong Kong)* 10/16/99 514
20,080 PT Indah Kiat Pulp & Paper (Indonesia)* 7/11/02 2,600
</TABLE>
<TABLE>
<CAPTION>
Number Expiration
of Shares Date Value +
<C> <S> <C> <C> <C>
1,225 Thai Farmers
Bank (Thailand)* 9/15/02 $166
-------
Total Warrants
(Cost $138,686) 103,851
-------
<CAPTION>
Nominal
Amount
<C> <S> <C> <C> <C>
Options -- 0.0%
++
BRL 2,350 Brazilian Real
Put Option,
strike price
$1.42* (Brazil)
(Cost $63,040) 3/2/99 25,530
-------
</TABLE>
<TABLE>
<CAPTION>
Principal Interest Maturity
Amount (a) Rate Date
<C> <S> <C> <C> <C>
Convertible Bonds -- 0.1%
48,000 App Global Finance V. Ltd.
(United Kingdom) 2.000% 7/25/00 34,560
83,000 Bacnotan Consolidated
(Philippines) 5.500% 6/21/04 29,880
-----------
Total Convertible Bonds (Cost
$70,929) 64,440
-----------
Total Long Term Investments
(Cost $80,194,457) 55,108,589
-----------
Short Term Investments -- 7.1%
Time Deposit -- 3.2%
1,867,115 BankBoston NA (e)
(Cost $1,867,115) 5.630% 1/4/99 1,867,115
-----------
Repurchase Agreement -- 3.9%
2,252,688 Investors Bank & Trust Co. Repurchase
Agreement, issued 12/31/98, proceeds at
maturity $2,253,752 (collateralized by
$2,345,246 FNR Ser. G-50 Cl-FA, 4.475% due
12/25/21, market value $2,366,038)
(Cost $2,252,688) 4.250% 1/4/99 $2,252,688
-----------
Total Short Term Investments
(Cost $4,119,803) 4,119,803
-----------
Total Investments (Cost $84,314,260) -
101.8% 59,228,392
Liabilities in excess of other
assets - (1.8%) (1,060,983)
-----------
Net Assets - 100.0% $58,167,409
===========
</TABLE>
20
<PAGE>
TIFF Emerging Markets Fund / Schedule of Investments December 31, 1998
Summary of Industry Classifications
(as a % of total market value):
<TABLE>
<S> <C>
Banking 4.1%
Basic Industries 4.1
Consumer Cyclical 8.4
Consumer Non-Cyclical 1.8
Diversified Investment Vehicles 39.9
Energy 3.5
Financial Services 9.1
Industrial 7.3
Insurance 3.1
Metals and Mining 1.0
Miscellaneous 0.3
Repurchase Agreements 3.8
Technology 6.7
Utilities 6.9
-----
Total 100.0%
=====
</TABLE>
+
See Note 2 to the Financial Statements.
++
Round to less than 0.1%.
*
Non-income producing security.
ADR
American Depositary Receipts
BRL
Brazilian Real (in thousands)
FNR
Fannie Mae Remic
GDR
Global Depository Receipts
(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)
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 December 31, 1998 the
aggregate value of these securities was $463,726 or 0.80% of net assets.
(e)Investment from cash collateral received for securities on loan at
December 31, 1998.
(f)Security or portion thereof was on loan at December 31, 1998.
See accompanying Notes to Financial Statements.
21
<PAGE>
TIFF U.S. Equity Fund December 31, 1998
[GRAPH APPEARS HERE]
<TABLE>
<CAPTION>
- -----------------------------------------------------------------------------
Comparison of Change in Value of $100,000 Investment in TIFF U.S. Equity Fund
and the Wilshire 5000 Index
- --------------------------------------------------------
Past performance is not predictive of future performance.
- --------------------------------------------------------
TIFF U.S. Equity Fund Wilshire 5000 Index
<S> <C> <C>
*5/31/94 100000 100000
6/30/94 97800 97325
7/29/94 100900 100214
8/31/94 104700 104640
9/30/94 103000 102614
10/31/94 104800 104290
11/30/94 101064 100471
12/30/94 103392 101825
1/31/95 105354 104025
2/28/95 109687 108168
3/31/95 112267 111019
4/28/95 114955 113778
5/31/95 118278 117632
6/30/95 122744 121384
7/31/95 128357 126379
8/31/95 130341 127611
9/29/95 133788 132478
10/31/95 132823 131148
11/30/95 138657 136705
12/29/95 140635 138940
1/31/96 144842 142662
2/29/96 147684 145157
3/29/96 150413 146745
4/30/96 154566 150371
5/31/96 157758 154482
6/28/96 156391 153211
7/31/96 148646 144945
8/30/96 152991 149582
9/30/96 158594 157546
10/31/96 162595 159748
11/29/96 172248 170331
12/31/96 171454 168411
1/31/97 179072 177426
2/28/97 179697 177344
3/31/97 171954 169500
4/30/97 180462 176892
5/30/97 191741 189425
6/30/97 199887 198127
7/31/97 214312 213359
8/29/97 208907 205339
9/30/97 221980 217456
10/31/97 217932 210213
11/28/97 223993 217095
12/31/97 228133 221107
1/30/98 228715 222308
2/27/98 244594 238492
3/31/98 256539 250429
4/30/98 259739 253402
5/29/98 253464 246659
6/30/98 256675 255307
7/31/98 244972 249713
8/31/98 204558 210825
9/30/98 211294 224596
10/30/98 227907 241306
11/30/98 242680 256501
12/31/98 255171 272914
</TABLE>
*Commencement of operations.
- --------------------------------------------------------------------------------
Policy Considerations: The Fund is designed as a diversified 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.
Performance Evaluation: Since inception, the Fund has generated an annualized
return of 22.6%, outperforming the average domestic equity fund (as reported by
Lipper) by 3.4% per annum but underperforming its primary benchmark (the
Wilshire 5000) by 1.9% per annum. The Fund's "Active Completeness" manager
(Martingale) has done a good job keeping the Fund's assets diversified across
investment sectors--no easy task given the small company and value biases of
the Fund's other managers--but two powerful trends overwhelmed the firm's
efforts during 4Q 1998: the very largest US stocks clobbered all other issues,
and the most expensive (high P/E) stocks became even more expensive, relatively
speaking.
Investment Performance (For Periods Ended December 31, 1998)
<TABLE>
<CAPTION>
Total Return**
--------------------------------------------
Year Cumulative Since Annualized Since
Ended Inception (5/31/94) Inception (5/31/94)
--------------------------------------------
<S> <C> <C> <C>
TIFF U.S. Equity Fund 11.9% 155.2% 22.6%
Wilshire 5000 Index 23.4% 172.9% 24.5%
</TABLE>
-------
**Total return includes the effects of entry/exit fees received by
the Fund.
22
<PAGE>
TIFF U.S. Equity Fund / Schedule of Investments December 31, 1998
<TABLE>
<CAPTION>
Number
of Shares Value +
<C> <S> <C>
Long Term Investments -- 90.0%
Common Stocks -- 87.5%
Aerospace -- 0.8%
61,500 AAR Corp. $1,468,313
9,300 Emerson Electric, Inc. 562,650
2,200 Lockheed Martin Corp* 186,450
2,100 United Technologies Corp. 228,375
----------
2,445,788
----------
Agriculture/Food -- 0.1%
750,000 Eastern Equities Corp. Ltd. 194,150
15,000 Eskimo Pie Corp. 198,750
----------
392,900
----------
Airlines -- 0.2%
2,700 AMR Corp.* 160,313
8,500 Delta Airlines, Inc.* 442,000
----------
602,313
----------
Banks -- 6.2%
58,400 Bankamerica Corp. 3,511,300
9,662 BB&T Corp. 389,499
19,580 CCB Financial Corp. 1,116,060
49,300 Chase Manhattan Corp. 3,355,482
53,000 Citigroup, Inc. 2,623,500
2,400 Comerica, Inc. 163,650
55,800 First Union Corp. 3,393,338
42,727 HUBCO, Inc. 1,287,150
12,834 Mercantile Bancorporation 591,968
9,400 PNC Bank Corp. 508,775
33,000 Six Rivers National Bank - Eureka* 383,625
6,700 Suntrust Banks, Inc. 512,550
50,000 Vermont Financial Services Corp. 1,662,500
----------
19,499,397
----------
Chemicals -- 2.9%
123,500 Albemarle Corp. 2,933,125
74,160 Ecoscience Corp.* 305,910
10,200 FMC Corp.* 571,200
90,400 McWhorter Technologies, Inc.* 2,067,900
30,000 Rogers Corp.* 896,250
51,500 Scotts Co. - Class A* 1,979,531
24,600 W.R. Grace & Co.* 385,913
----------
9,139,829
----------
Circuits -- 0.2%
9,700 Motorola, Inc. 592,306
----------
Computer Software -- 4.0%
7,700 BMC Software, Inc.* 343,131
61,600 BroadVision, Inc.* 1,971,200
20,200 Computer Associates International, Inc. 861,025
105,500 Conductus, Inc.* 164,844
3,500 Ingram Micro, Inc.* 122,063
90,000 Metrowerks, Inc.* 351,576
55,500 Microsoft Corp.* 7,697,157
9,300 Novell, Inc.* 168,563
15,900 Oracle Corp.* 685,688
----------
12,365,247
----------
</TABLE>
<TABLE>
<CAPTION>
Number
of Shares Value +
<C> <S> <C>
Computers -- 4.7%
3,300 Apple Computer Inc.* $135,094
93,000 Bull Run Corp.* 313,875
14,000 Compaq Computer Corp. 587,125
38,900 Dell Computer Corp.* 2,846,993
4,700 EMC Corp.* 399,500
8,100 Gateway 2000, Inc.* 414,619
3,600 Hewlett-Packard Co. 245,925
34,000 International Business Machines Corp. 6,281,499
20,700 Lexmark International Group, Inc. -Class A* 2,080,350
2,900 Tech Data Corp.* 116,725
95,400 Valmont Industries, Inc. 1,323,674
----------
14,745,379
----------
Construction -- 1.9%
8,300 Caterpillar, Inc. 381,800
158,300 Johns Manville Corp. 2,602,056
99,700 Layne, Inc.* 735,288
142,900 Walter Industries, Inc.* 2,188,156
----------
5,907,300
----------
Cosmetics -- 0.1%
3,700 Gillette Co. 178,756
----------
Data Processing -- 0.2%
6,700 Automatic Data Processing, Inc.* 537,256
----------
Direct Marketing -- 0.3%
30,900 Pittston Brinks Group 984,938
----------
Electrical Utilities -- 1.0%
11,300 Baltimore Gas and Electric Co. 348,888
4,800 DTE Energy Co. 205,800
16,700 FPL Group, inc 1,029,138
13,700 Houston Industries, Inc. 440,113
29,700 Public Service Enterprise Group, Inc. 1,188,000
----------
3,211,939
----------
Electronic Equipment -- 0.9%
8,500 Honeywell, Inc. 640,156
18,600 Lucent Technologies, Inc. 2,046,000
----------
2,686,156
----------
Electronics -- 0.7%
14,400 PG & E Corp. 453,600
71,600 Sensormatic Electronics Corp.* 496,725
676,000 Strategic Diagnostic, Inc.* 1,352,000
----------
2,302,325
----------
Environmental Services -- 0.1%
6,200 Waste Management Inc. 289,075
----------
Financial -- 1.0%
103,000 San Juan Basin Royalty Trust 560,063
100,000 Seacoast Financial Services Corp.* 1,025,000
34,000 Xtra Corp.* 1,406,750
----------
2,991,813
----------
Financial Services -- 4.0%
1,600 American Express Co. 163,600
3,300 Capital One Financial Corp. 379,500
6,600 Federal Home Loan Mortgage Corp. 425,288
20,500 Federal National Mortgage Association 1,517,000
</TABLE>
23
<PAGE>
TIFF U.S. Equity Fund / Schedule of Investments December 31, 1998
<TABLE>
<CAPTION>
Number
of Shares Value +
<C> <S> <C>
71,300 General Electric Co. $7,277,056
33,700 Household International, Inc. 1,335,363
15,500 Morgan Stanley, Dean Witter, Discover & Co. 1,100,500
8,600 Paychex, Inc. 442,363
----------
12,640,670
----------
Food & Beverages -- 3.9%
9,200 Anheuser-Busch Companies, Inc. 603,750
21,600 Canandaigua Wine Co., Inc. - Class A* 1,248,749
41,400 Coca-Cola Co. 2,768,624
14,000 Coca-Cola Enterprises, Inc. 500,500
21,100 Conagra Inc. 664,649
21,600 First Brands Corp. 851,850
2,900 Heinz (H.J.) Co. 164,213
12,600 IBP, Inc. 366,975
168,400 Pepsi-Cola Puerto Rico Bottling Co. -
Class B* 873,574
5,400 Quaker Oats Co. 321,300
16,300 Ralston Purina Group 527,713
7,100 Richfood Holdings Inc. 147,325
7,000 Safeway, Inc.* 426,562
19,100 Smithfield Foods, Inc.* 647,012
8,200 Suiza Foods Corp.* 417,687
31,800 Supervalu, Inc. 890,400
16,400 Sysco Corp. 449,975
21,500 Universal Foods Corp. 589,905
----------
12,460,763
----------
Gas & Water Utilities -- 0.2%
9,800 Columbia Energy Group 565,950
----------
Health Care -- 1.9%
266,700 Embrex, Inc.* 1,333,500
5,600 IMS Health, Inc.* 422,450
250,700 Pharmchem Laboratories* 1,159,488
53,500 Protocol Systems, Inc.* 381,188
230,000 ReSound Corp.* 862,500
16,700 Tenet Healthcare Corp.* 438,375
30,000 Universal Health Services, Inc. - Class B* 1,556,250
----------
6,153,751
----------
Home Products -- 2.1%
16,700 Avon Products, Inc. 738,975
10,500 Libbey Inc. 303,844
59,100 Procter & Gamble Co. 5,396,569
----------
6,439,388
----------
Hotels/Restaurants -- 1.0%
380 CKE Restaurants Inc.* 11,186
47,766 Morrison Health Care, Inc. 910,539
80,000 Ruby Tuesday, Inc. 1,700,000
30,600 Ryan's Family Steak House, Inc.* 378,675
----------
3,000,400
----------
Industrial Parts -- 0.9%
21,700 Ingersoll-Rand Co. 1,018,544
22,200 Tyco International Ltd. 1,674,713
----------
2,693,257
----------
</TABLE>
<TABLE>
<CAPTION>
Number
of Shares Value +
<C> <S> <C>
Industrial Services -- 0.1%
10,400 GATX Corp. $393,900
----------
Information Services -- 1.0%
11,600 America Online, Inc.* 1,856,000
7,100 Computer Sciences Corp. 457,506
10,800 First Data Corp. 342,225
4,700 Keane, Inc.* 187,706
600 Yahoo! Inc.* 142,163
----------
2,985,600
----------
Insurance -- 4.2%
5,100 Aetna, Inc. 400,988
101,100 Allstate Corp. 3,904,987
12,100 American International Group 1,169,162
21,700 Cigna Corp. 1,677,681
169,700 CNA Surety Corp. 2,672,774
51,800 Conseco, Inc. 1,583,137
8,400 Hartford Financial Services Group 460,950
5,300 Lincoln National Corp. 433,605
7,500 Loews Corp. 736,874
8,800 Travelers Property Casualty 272,800
----------
13,312,958
----------
Leisure -- 1.2%
24,200 Eastman Kodak Co. 1,742,400
29,800 Pegasus Systems Inc.* 1,072,800
10,000 Polaris Industries Inc. 391,875
41,000 Rawlings Sporting Goods Co.* 463,813
----------
3,670,888
----------
Media -- 0.3%
26,300 The Walt Disney Co. 789,000
2,800 Time Warner, Inc. 173,775
----------
962,775
----------
Medical Products & Supplies -- 0.9%
3,900 Becton Dickinson & Co. 166,481
13,300 Dentsply International Inc. 342,475
2,900 Guidant Corp.* 319,725
14,400 Medtronic, Inc. 1,069,200
27,000 Perclose Inc.* 894,375
----------
2,792,256
----------
Mining & Metals -- 2.1%
51,400 Asarco, Inc. 774,213
40,900 Barrick Gold Corp. 797,550
62,000 Checkpoint Systems, Inc.* 767,250
23,600 Imperial Oil Ltd. 379,075
9,300 Owens-Illinois, Inc.* 284,813
93,500 Pioneer Natural Resources Co. 818,125
5,300 Solectron Corp.* 492,569
54,300 Stillwater Mining Co.* 2,226,300
134,000 Zimbabwe Platinum* 26,233
----------
6,566,128
----------
Motor Vehicles -- 1.9%
52,600 Ford Motor Co. 3,086,962
27,900 General Motors Corp. 1,996,594
127,700 Treadco, Inc.* 861,975
----------
5,945,531
----------
Multimedia -- 0.4%
100,500 Gray Communications Systems, Inc. -
Class B 1,375,594
----------
</TABLE>
24
<PAGE>
TIFF U.S. Equity Fund / Schedule of Investments December 31, 1998
<TABLE>
<CAPTION>
Number
of Shares Value +
<S> <C> <C>
Oil & Gas -- 2.5%
12,500 Coastal Corp. $436,719
7,300 Devon Energy Corp. 224,019
6,100 Enron Corp. 348,081
88,600 Exxon Corp. 6,478,875
7,700 USX-Marathon Group, Inc. 231,963
----------
7,719,657
----------
Paper/Forest Products -- 2.6%
117,900 Albany International Corp.* 2,232,730
77,600 Caraustar Industries, Inc. 2,216,450
6,400 Fort James Corp. 256,000
8,500 Kimberly-Clark Corp. 463,250
148,100 Playtex Products Inc.* 2,378,856
28,000 United Stationers, Inc.* 728,000
----------
8,275,286
----------
Pharmaceuticals -- 7.4%
14,200 American Home Products Corp. 799,637
15,700 Amgen, Inc.* 1,641,631
4,000 Biogen, Inc.* 332,000
40,800 Bristol-Myers Squibb Co.* 5,459,549
35,700 Eli Lilly & Co. 3,172,838
15,300 Johnson & Johnson (Medical Products) 1,283,287
4,900 Merck & Company, Inc.* 723,668
50,800 Owens & Minor, Inc. 800,100
12,300 Pfizer, Inc. 1,542,881
75,800 Schering-Plough Corp.* 4,187,950
41,000 Warner-Lambert Co. 3,082,688
----------
23,026,229
----------
Producer Goods -- 1.5%
50,000 C&D Technologies, Inc. 1,375,000
126,300 Daniel Industries 1,531,388
79,400 Scotsman Industries, Inc. 1,632,663
----------
4,539,051
----------
Publishing -- 2.0%
47,900 Gannett Company, Inc. 3,089,550
194,200 Primedia, Inc.* 2,281,850
6,700 Tribune Co. 442,200
7,800 Viacom, Inc. - Class B* 577,200
----------
6,390,800
----------
Railroads -- 1.9%
110,300 Canadian Pacific Ltd. 2,081,913
79,900 Westinghouse Air Brake Co. 1,952,556
103,500 Wisconsin Central Transportation Corp.* 1,778,906
----------
5,813,375
----------
Retail (Foods) -- 0.5%
19,600 Albertson's Inc. 1,248,275
16,200 Casey's General Store, Inc. 211,107
----------
1,459,382
----------
Retail (Other) -- 4.2%
6,500 Best Buy Company, Inc.* 398,938
75,125 Consolidated Stores Corp.* 1,516,586
14,400 Dayton Hudson Corp. 781,200
800,000 DB Group Ltd.* 1,183,392
11,100 GAP Stores 624,375
125,000 Geerlings & Wade, Inc.* 1,148,438
</TABLE>
<TABLE>
<CAPTION>
Number
of Shares Value +
<C> <S> <C>
14,800 Intimate Brands, Inc. $442,150
63,700 K Mart Corp.* 975,406
3,500 Loews Co.'s, Inc. 179,156
8,200 May Department Stores 495,075
6,400 Michaels Stores, Inc.* 115,800
14,600 Ross Stores, Inc. 574,875
40,500 Sears, Roebuck and Company 1,721,250
12,900 Shopko Stores, Inc.* 428,925
6,000 Tandy Corp. 247,125
36,600 TJX Companies, Inc. 1,061,400
9,900 Wal-Mart Stores, Inc. 806,231
15,300 Zale Corp.* 493,425
----------
13,193,747
----------
Semiconductor -- 2.1%
54,300 Intel Corp. 6,437,944
----------
Services -- 1.0%
4,300 Equifax, Inc. 147,006
115,700 Exponent, Inc.* 694,200
36,500 Hilb, Rogal & Hamilton Co. 725,438
37,950 ITT Educational Services, Inc.* 1,290,300
15,000 Volt Information Sciences, Inc.* 338,438
----------
3,195,382
----------
Steel -- 0.2%
30,844 Allegheny Teledyne, Inc. 630,374
----------
Telecommunications -- 5.5%
3,100 Airtouch Communications, Inc.* 223,588
2,600 Ameritech Corp. 164,775
73,200 AT & T Corp. 5,508,300
12,300 BCE, Inc. 466,631
17,300 Bell Atlantic Corp. 916,900
35,200 BellSouth Corp. 1,755,600
20,700 GTE Corp. 1,345,500
12,800 MCI Worldcom, Inc.* 918,400
4,600 Northern Telecom Ltd. 230,575
81,900 SBC Communications, Inc. 4,391,888
7,100 Sprint Corp. 597,288
9,100 U.S. West, Inc. 588,088
----------
17,107,533
----------
Textiles, Clothing & Fabrics -- 0.1%
16,500 Tredegar Industries, Inc. 371,250
----------
Thrifts -- 1.8%
26,000 Carolina First Corp. 658,125
55,566 Charter One Financial, Inc. 1,541,957
31,395 Downey Financial Corp. 798,610
11,000 First Washington Bancorp Inc. 264,000
42,000 Peoples Bank of Bridgeport, Connecticut 1,160,250
41,500 Riverview Bancorp, Inc. 508,375
17,400 Washington Mutual, Inc. 664,463
----------
5,595,780
----------
Tobacco -- 0.1%
10,800 Universal Corp. 379,350
----------
Transportation -- 2.7%
35,250 Air Express International Corp. 766,688
60,000 Airborne Freight Corp. 2,163,750
</TABLE>
25
<PAGE>
TIFF U.S. Equity Fund / Schedule of Investments December 31, 1998
<TABLE>
<CAPTION>
Number
of Shares Value +
<C> <S> <C>
41,800 Circle International Group, Inc. $ 856,900
40,000 CNF Transportation, Inc. 1,502,500
76,900 Fritz Companies, Inc.* 831,481
100,200 Kirby Corp.* 1,997,738
40,000 Pittston Bax Group, Inc. 445,000
------------
8,564,057
------------
Total Common Stocks (Cost $239,444,331) 273,531,723
------------
Preferred Stocks -- 0.1%
100,000 Conductus Inc. Series B (b) 270,000
36,875 Norian Corp. (144A) (a) (b) 206,500
------------
Total Preferred Stocks (Cost $476,500) 476,500
------------
Limited Partnership -- 2.4%
Gotham Partners (b) (c) (Cost $5,925,000) 7,417,000
------------
Total Long Term Investments (Cost $245,845,831) 281,425,223
------------
</TABLE>
<TABLE>
<CAPTION>
Short Term Investments -- 1.7%
Principal Interest Maturity
Amount Rate Date
<C> <S> <C> <C> <C>
U.S. Treasury -- 0.5%
$1,695,000 U.S. Treasury Bill++ (Cost
$1,679,457) 4.36%# 3/18/99 1,680,048
------------
Repurchase Agreement -- 1.2%
3,603,023 Investors Bank & Trust Company Repurchase
Agreement, issued 12/31/98 (proceeds at
maturity $3,604,724) (Collateralized by
$3,660,958 FNMA ARM, 7.472% due 6/1/27 with
a market value of $3,783,844)
(Cost $3,603,023) 4.250% 1/04/99 3,603,023
------------
Total Short Term Investments
(Cost $5,282,480) 5,283,071
------------
Total Investments -- 91.7%
(Cost $251,128,311) 286,708,294
Other assets in excess of liabilities -- 8.3% 25,878,357
------------
Net Assets -- 100.0% $312,586,651
============
</TABLE>
<TABLE>
<CAPTION>
Number of
Shares Value +
<C> <S> <C>
Short Portfolio -- (0.0%)
Electronics -- (0.0%)
600 VideoLan Technologies, Inc. (Proceeds $77,718)* $(6)
----
</TABLE>
* Non-income producing security.
# Interest rate represents the yield to maturity at the time of purchase.
+ See Note 2 to the Financial Statements.
++ Security or a portion thereof is held with a broker as initial margin
for financial futures contracts. See Appendix C to Notes to Financial
Statements.
ARM Adjustable Rate Mortgage
FNMA Federal National Mortgage Association
(a) Security exempt from registration under Rule 144A of the Securities Act
of 1933. These securities may be resold in transactions exempt from
registration, normally to qualified buyers. At December 31, 1998, the
aggregate value of these securities was $206,500 or 0.07% of net
assets.
(b) Security is valued in good faith under procedures established by the
board of directors of the Fund.
(c) Restricted security.
See accompanying Notes to Financial Statements.
26
<PAGE>
TIFF Bond Fund December 31, 1998
[GRAPH APPEARS HERE]
<TABLE>
<CAPTION>
- ----------------------------------------------------------------------
Comparison of Change in Value of $100,000 Investment in TIFF Bond Fund
and the Lehman Aggregate Bond Index
- --------------------------------------------------------
Past performance is not predictive of future performance.
- --------------------------------------------------------
TIFF Bond Fund Lehman Aggregate Bond Index
<S> <C> <C>
*5/31/94 100000 100000
6/30/94 99758 99779
7/29/94 101275 101770
8/31/94 101497 101893
9/30/94 100205 100393
10/31/94 100066 100304
11/30/94 99905 100081
12/30/94 100460 100772
1/31/95 102346 102766
2/28/95 104512 105210
3/31/95 105359 105855
4/28/95 106934 107334
5/31/95 111181 111487
6/30/95 111801 112305
7/31/95 111524 112054
8/31/95 112840 113406
9/29/95 113942 114510
10/31/95 115388 115999
11/30/95 116908 117737
12/29/95 118610 119389
1/31/96 119054 120182
2/29/96 117078 118093
3/29/96 116331 117272
4/30/96 115664 116613
5/31/96 115422 116376
6/28/96 117029 117939
7/31/96 117324 118261
8/30/96 117281 118063
9/30/96 119362 120121
10/31/96 121903 122782
11/29/96 124107 124885
12/31/96 123060 123723
1/31/97 123748 124102
2/28/97 124292 124411
3/31/97 123126 123032
4/30/97 124785 124874
5/30/97 125845 126055
6/30/97 127304 127551
7/31/97 130778 130990
8/29/97 129670 129873
9/30/97 131527 131789
10/31/97 133092 133701
11/28/97 133502 134316
12/31/97 134869 135679
1/30/98 135944 137416
2/27/98 135951 137312
3/31/98 136666 137784
4/30/98 137356 138503
5/29/98 138583 139817
6/30/98 139869 141003
7/31/98 139876 141303
8/31/98 141515 143602
9/30/98 143165 146965
10/30/98 142323 146188
11/30/98 143965 147018
12/31/98 144597 147460
</TABLE>
*Commencement of operations.
- --------------------------------------------------------------------------------
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) tend to perform well when
inflation concerns ease, as they have over the last few quarters, and they tend
to perform poorly when investors are spooked by strength in the economy (actual
or expected), as they were during much of 1996. Relative to its performance
benchmark (the Lehman Aggregate Index), the Fund typically underweights
treasury securities in favor of high-quality corporate, mortgage-, and asset-
backed securities offering a higher yield. Accordingly, the Fund will tend to
underperform its benchmark when there is a pronounced "flight to quality" in
the US bond market (e.g., 3Q 1998) and outperform its benchmark when quality
spreads are stable or contract (e.g., 4Q 1998).
Performance Evaluation: The Fund has produced strong absolute returns since
inception (8.4% per annum) but has underperformed its benchmark (the Lehman
Aggregate Index) by a modest margin (0.4% annualized). As noted above, the
Fund's relative performance is highly sensitive to changes in quality spreads.
During 4Q 1998, quality spreads in the US bond market narrowed as buyers re-
entered the market for the "spread products" that the Fund tends to overweight.
All of the managers employed by the Fund outperformed during 4Q 1998, a happy
reversal of the results produced when quality spreads widened dramatically
during the prior quarter.
Investment Performance (For Periods Ended December 31, 1998)
<TABLE>
<CAPTION>
Total Return
--------------------------------------------------
Year Cumulative Since Annualized Since
Ended Inception (5/31/94) Inception (5/31/94)
--------------------------------------------------
<S> <C> <C> <C>
TIFF Bond Fund 7.3% 44.6% 8.4%
Lehman Aggregate Bond Index 8.7% 47.5% 8.8%
</TABLE>
27
<PAGE>
TIFF Bond Fund / Schedule of Investments December 31, 1998
<TABLE>
<CAPTION>
Principal Interest Maturity
Amount Rate Date Value +
<C> <S> <C> <C> <C>
Long Term Investments -- 102.6%
Bonds -- 101.4%
U.S. Treasury Securities -- 10.3%
$1,415,000 U.S. Treasury Bond 5.500% 08/15/28 $1,483,097
625,000 U.S. Treasury Bond 6.125 11/15/27 700,000
55,000 U.S. Treasury Bond 6.375 08/15/27 63,250
725,000 U.S. Treasury Bond 8.000 11/15/21 971,274
200,000 U.S. Treasury Bond 8.125 05/15/21 270,313
905,000 U.S. Treasury Bond 9.250 02/15/16 1,300,090
185,000 U.S. Treasury Note 4.250 11/15/03 182,572
825,000 U.S. Treasury Note 4.750 11/15/08 831,446
570,000 U.S. Treasury Note 5.500 12/31/00 579,441
305,000 U.S. Treasury Note 5.625 10/31/99 307,383
120,000 U.S. Treasury Note 5.625 12/31/99 121,163
1,200,000 U.S. Treasury Note 5.625 11/30/00 1,221,376
2,825,000 U.S. Treasury Note 5.750 10/31/00 2,878,853
210,000 U.S. Treasury Note 5.750 04/30/03 218,466
1,030,000 U.S. Treasury Note 5.750 08/15/03 1,075,062
70,000 U.S. Treasury Note++ 5.875 07/31/99 70,492
230,000 U.S. Treasury Note 5.875 11/15/05 245,381
120,000 U.S. Treasury Note++ 6.375 05/15/99 120,713
250,000 U.S. Treasury Note 6.375 07/15/99 252,344
105,000 U.S. Treasury Note 6.375 09/30/01 109,561
945,000 U.S. Treasury Note 6.750 04/30/00 969,806
2,505,000 U.S. Treasury Note 7.000 07/15/06 2,852,569
260,000 U.S. Treasury Note++ 7.125 02/29/00 267,069
145,000 U.S. Treasury Note 8.000 05/15/01 155,739
150,000 U.S. Treasury Note++ 8.875 02/15/99 150,703
4,070,000 U.S. Treasury Strip 5.670# 02/15/20 1,257,707
6,350,000 U.S. Treasury Strip 5.630# 11/15/21 1,796,409
----------
Total U.S. Treasury Securities (Cost $19,558,177) 20,452,279
----------
Agency Mortgage-Backed Securities -- 42.2%
551,764 FHLMC 7.000 01/01/11 563,753
3,295,067 FHLMC 7.500 12/01/27 3,380,011
1,624,404 FHLMC 8.500 06/01/12 1,701,238
6,220,000 FHLMC Gold (TBA) 6.000 02/18/14 6,233,606
6,000,000 FHLMC Gold (TBA) 6.000 01/14/29 5,928,047
1,875,000 FHLMC, Ser. 1577, Class PH 6.300 03/15/23 1,896,754
1,305,629 FHR IO, Ser. 1519, Class HA 7.000 05/15/08 168,904
770,000 FNMA 4.625 10/15/01 763,639
725,000 FNMA 6.000 05/15/08 765,000
1,994,876 FNMA 6.200 09/01/08 2,056,553
650,000 FNMA 6.420 12/01/07 681,208
4,520,277 FNMA 6.500 04/01/28 4,550,397
3,221,723 FNMA 6.500 05/01/28 3,243,191
3,887,746 FNMA 6.500 06/01/28 3,913,652
5,959,812 FNMA 6.500 11/01/28 6,000,338
890,221 FNMA 6.980 06/01/07 952,204
1,245,693 FNMA 7.000 03/01/24 1,270,307
891,491 FNMA 9.000 03/01/25 945,310
1,547,973 FNMA 6.500 09/01/28 1,558,426
6,000,000 FNMA (TBA) 6.500 01/14/28 6,041,280
1,650,000 FNMA Aces, Ser. 1997-M8, Class A2 7.160 01/25/22 1,789,953
470,219 GNMA 6.625 08/20/17 476,805
97,189 GNMA 6.625 09/20/21 98,647
454,497 GNMA 6.875 01/20/18 460,503
296,935 GNMA 7.000 12/20/17 300,294
399,305 GNMA 7.000 07/15/23 408,852
</TABLE>
<TABLE>
<CAPTION>
Principal Interest Maturity
Amount Rate Date Value +
<C> <S> <C> <C> <C>
$992,966 GNMA 7.000% 05/15/24 $1,016,552
945,581 GNMA 7.500 12/15/25 973,981
909,073 GNMA 7.500 06/15/26 936,377
848,014 GNMA 7.500 07/15/26 873,484
1,844,229 GNMA 7.500 08/15/27 1,899,621
380,268 GNMA 9.500 10/15/24 412,717
912,092 GNMA (ARM) 6.875 04/20/24 925,748
4,000,000 GNMA 7.000 12/15/28 4,092,513
1,000,000 GNMA (TBA) 7.000 01/21/29 1,023,281
1,821,671 GNMA II 4.500 05/20/28 1,814,172
2,054,059 GNMA II 4.500 06/20/28 2,045,604
1,340,650 GNMA II 5.000 01/20/28 1,344,677
948,061 GNMA II 5.000 02/20/28 950,909
5,545,399 GNMA II 5.000 03/20/28 5,562,058
1,085,745 GNMA II 5.000 04/20/28 1,086,641
1,869,246 GNMA II 5.500 05/20/28 1,879,963
472,703 GNMA II 5.500 06/20/28 475,413
----------
Total Agency Mortgage-Backed Securities (Cost
$82,475,825) 83,462,583
----------
Municipal Obligations -- 2.0%
235,000 Cook County Illinois, Ser. A 5.000 11/15/22 230,490
165,000 Detroit Michigan Sewer Disposal
Revenue, Ser. A 5.000 07/01/22 161,870
375,000 Houston Texas Apartment Systems
Revenue 5.000 07/01/25 367,447
470,000 Kings County Washington Refunding
Ser. A 5.000 01/01/30 458,429
210,000 Massachusetts Bay Transit Authority,
Ser. A 5.000 03/01/27 206,247
790,000 Massachusetts Turnpike Authority
Highway Systems Revenue, Ser. A 5.000 01/01/37 766,480
260,000 Nevada State, Ser. A 5.000 05/15/28 254,844
230,000 North Texas Thruway Authority,
Systems Revenue 4.750 01/01/22 218,576
265,000 Public Highway Authority Colorado
Revenue 5.000 09/01/26 260,304
80,000 Tennessee Valley Authority 6.375 06/15/05 85,607
235,000 Washington D C Convention Center
Authority 5.000 10/01/21 229,673
485,000 Washington State, Ser. A 5.000 01/01/23 475,043
200,000 Wayne Charter County Detroit
Revenue, Ser A 5.000 12/01/28 193,954
----------
Total Municipal Obligations
(Cost $3,948,919) 3,908,964
----------
Corporate Obligations -- 33.3%
435,000 ABN-AMRO 7.125 10/2093 441,745
250,000 Aes Corp. 8.375 08/15/07 251,875
234,310 American Airlines, Ser. 1991-A,
Class A-1 9.710 01/02/07 259,006
750,000 American General Finance 5.780 11/16/01 751,249
390,000 Amerus Life Holdings Inc. 6.950 06/15/05 392,488
50,000 Associated Estates Realty 8.375 04/15/00 50,980
210,000 Associates Corp. NA 5.875 07/15/02 212,579
555,000 Associates Corp. NA 5.750 11/01/03 558,964
</TABLE>
28
<PAGE>
TIFF Bond Fund / Schedule of Investments December 31, 1998
<TABLE>
<CAPTION>
Principal Interest Maturity
Amount Rate Date Value +
<C> <S> <C> <C> <C>
$1,250,000 Associates Corp. NA 6.000% 04/15/03 $1,269,626
370,000 Banc One Corp. 7.250 08/01/02 389,272
445,000 Bayerishce Landesbank 5.875 12/01/08 450,803
1,200,000 Bear Stearns Co., Inc. 6.750 12/15/07 1,236,472
500,000 Beaver Valley Funding Corp. II (d) 9.000 06/01/17 562,500
650,000 Cable & Wireless Communications 6.750 12/01/08 658,250
200,000 Calenergy Co., Inc. 8.480 09/15/28 225,104
250,000 CBS Corp. 7.150 05/20/05 263,012
500,000 Cendant Corp. 7.500 12/01/00 504,154
430,000 Citicorp Notes 6.375 11/15/08 446,082
555,000 Comdisco Inc. 6.380 06/25/01 556,075
220,000 Comdisco Inc. 6.130 08/01/01 218,805
1,565,000 Compania Telecom Chile (Chile) 7.625 07/15/06 1,510,909
825,000 Continental Airlines 6.541 09/15/08 833,102
380,000 Continental Airlines Pass Through
Certificates, Ser. 1998-3 7.080 11/01/04 378,485
1,200,000 Corp. Andina de Fomento 7.250 03/01/07 1,171,104
670,000 Countrywide Home Loans Inc. 5.620 10/16/00 667,823
1,045,000 Cummins Engine Co., Inc. 5.650 03/2098 743,620
465,000 Developers Diversified Realty Corp. 6.840 12/16/04 450,724
450,000 Duke Capital Corp. 6.750 07/15/18 470,487
929,000 Duquesne Light Co. 8.700 06/01/16 1,050,885
1,500,000 El Paso Natural Gas Co. 6.750 11/15/03 1,560,165
445,000 Enron Corp. 6.725 11/17/08 451,119
625,000 ERAC USA Finance Co. (144A) (a) 6.950 03/01/04 633,274
500,000 Fairfax Financial Holdings Ltd. 7.750 07/15/37 490,850
680,000 Farmers Insurance Exchange (144A) (a) 8.625 05/01/24 824,072
275,000 Federated Department Stores 6.790 07/15/27 287,576
1,000,000 Federated Department Stores 7.450 07/15/17 1,091,915
1,025,000 First Maryland Bancorp 7.200 07/01/07 1,113,738
1,200,000 First Union Corp. 6.400 04/01/08 1,251,923
530,000 First Union National Bank 5.800 12/01/08 528,872
250,000 Flores & Rucks 9.750 10/01/06 255,000
1,190,000 Florida Windstorm Underwriting
(144A) (a) 6.500 08/25/02 1,212,950
725,000 FNMA (MTN) 5.800 02/22/06 750,426
355,000 Ford Motor Co. 7.700 05/2097 409,382
1,000,000 Ford Motor Credit Corp. 6.500 02/28/02 1,025,804
500,000 Global Marine Inc. 7.125 09/01/07 507,201
760,000 Goldman Sachs Group LP (144A) (a) 7.800 07/15/02 801,883
1,000,000 GTE Florida Inc. 6.310 12/15/02 1,034,353
675,000 Heller Financial Inc. 5.870 11/01/00 674,329
350,000 HMH Properties 7.875 08/01/05 341,250
535,000 Household Netherlands, BV 5.750 12/01/03 538,322
1,453,472 Humpuss Funding Corp. (144A) (a) 7.720 12/15/09 1,087,589
1,250,000 IBM Corp. 6.500 01/15/28 1,320,213
290,000 IMC Global Inc. 7.625 11/01/05 296,763
</TABLE>
<TABLE>
<CAPTION>
Principal Interest Maturity
Amount Rate Date Value +
<C> <S> <C> <C> <C>
$975,624 Jasmine Submarine Telecommunications
(144A) (a) 8.483% 05/30/11 $904,130
165,000 Jet Equipment Trust (144A) (a) 9.710 08/15/13 206,610
244,917 Jet Equipment Trust (144A) (a) 7.630 08/15/12 265,043
350,000 J.Seagram & Sons 7.600 12/15/28 352,294
595,000 Kern River Funding Corp. (144A) (a) 6.720 09/30/01 607,837
350,000 Land 'O Lakes Cap Trust I (144A) (a) 7.450 03/15/28 334,759
1,140,000 Lasmo Inc. 7.351 11/15/27 1,031,634
820,000 Lehman Brothers Holdings, Inc. 6.000 02/26/01 814,017
700,000 Leucadia National Corp. 7.875 10/15/06 713,106
630,000 Liberty Mutual Capital Corp. 8.100 01/14/05 689,704
310,000 Liberty Property LP 6.950 12/01/06 291,342
800,000 Lockheed Martin Corp. 6.850 05/15/01 825,612
290,000 Lumbermens Mutual Casualty (144A) (a) 9.150 07/01/26 345,749
400,000 Lumbermens Mutual Casualty (144A) (a) 8.450 12/2097 428,326
950,000 Martin Marietta Material 5.875 12/01/08 946,087
355,000 Merrill Lynch & Co., Inc. 6.875 11/15/18 369,510
955,000 Morgan Stanley Group Inc. 8.100 06/24/02 1,025,773
1,725,000 Mutual Life Insurance Co. (144A) (a)
(b) 11.250 08/15/24 2,568,949
850,000 Nabisco Inc. 7.550 06/15/15 853,301
505,000 Newcourt Credit Group 7.125 12/17/03 500,732
1,000,000 Norfolk Southern Corp. 6.950 05/01/02 1,041,071
615,635 Northwest Airlines Corp. 7.068 07/02/17 610,790
200,000 Occidental Petroleum 7.375 11/15/08 205,252
200,000 Olympus Communications LP 10.625 11/15/06 220,000
455,000 Owens Corning 7.500 08/01/18 450,820
250,000 Owens & Minor 10.875 06/01/06 268,750
405,000 PNC Funding Corp. 6.500 05/01/08 423,822
510,000 PSI Energy, Inc. 6.000 12/14/01 509,978
1,105,000 Ras Laffan-Lincs, Ser. 1997-11- (144A)
(a) (c) 7.850 03/18/14 1,273,316
225,000 Reliastar Financial Corp. 6.500 11/15/08 228,220
600,000 Rodamco NV 7.300 05/15/05 648,900
600,000 Rollins Truck Leasing 7.000 03/15/01 616,292
675,000 Salomon Smith Barney Holdings Inc. 6.750 02/15/03 695,197
200,000 Sea Containers 9.500 07/01/03 206,000
610,000 Seagram Co Ltd. 6.875 09/01/23 566,075
620,000 Seagull Energy Corp. 7.500 09/15/27 543,211
1,200,000 Sears Roebuck Acceptance 6.000 03/20/03 1,212,020
415,000 Shopko Stores 6.500 08/15/03 414,312
1,640,000 SocGen Real Estate LLC (144A) (a) 7.640 12/29/49 1,519,752
200,000 Stations Casinos (144A) (a) 8.875 12/01/08 203,000
500,000 Tektronix Inc. 7.500 08/01/03 534,691
400,000 Tenet Healthcare Corp. 8.625 01/15/07 418,000
930,000 Texaco Capital Inc. 5.700 12/01/08 927,855
530,000 Transamerica Finance Corp. 6.125 11/01/01 532,233
200,000 Unisys Corp. 11.750 10/15/04 232,000
570,000 Unova Inc. 6.875 03/15/05 573,767
</TABLE>
29
<PAGE>
TIFF Bond Fund / Schedule of Investments December 31, 1998
<TABLE>
<CAPTION>
Principal Interest Maturity
Amount Rate Date Value +
<C> <S> <C> <C> <C>
$225,000 USA Networks Inc., (144A) (a) 6.750% 11/15/05 $225,842
950,000 Viacom Inc. 7.750 06/01/05 1,037,323
----------
Total Corporate Obligations
(Cost $64,606,249) 65,878,153
----------
Asset and Mortgage-Backed Securities -- 13.5%
550,000 Advanta Mortgage Loan Trust,
Ser. 1997-1, Class B1F 8.150 05/25/27 555,742
575,000 Advanta Mortgage Loan Trust, Ser.
1997, Class A5 7.250 06/25/27 598,736
1,000,000 Americredit Auto Receivables Trust,
Ser. 1997-C, Class A3 6.300 07/05/03 1,018,140
1,050,000 Amresco Mortgage Loan Trust,
Ser. 1997-1, Class B1F 7.915 03/25/27 1,084,965
1,425,000 Amresco Residential
Securities Mortgage Loan, Ser.
1997-1, Class A8 7.240 03/25/27 1,483,241
400,000 California Infrastructure SCE, Ser.
1997-1, Class A6 6.380 09/25/08 403,068
666,614 Chase Manhattan Auto Owner Trust,
Ser. 1997-A, Class A3 6.250 11/15/00 670,147
1,300,000 Citibank Credit Card Master Trust,
(FRN), Ser. 1997-2, Class A 6.550 02/15/04 1,340,165
2,000,000 CS First Boston Mortgage Securities
Corp., Ser. 1998-C1, Class A1B 6.480 05/17/08 2,069,360
2,000,000 First Union Lehman Brothers
Bank of America, Ser. 1998-C2, Class
A2 6.560 11/18/08 2,085,011
649,332 IMC Home Equity Loan, Ser. 1997-4,
Class A 7.625 10/20/27 643,982
1,000,000 MBNA Master Credit Card Trust, Ser.
1997-F, Class A 6.600 11/15/04 1,035,894
5,000,000 Nomura Asset Security Corp. Series
98-D, Class A 6.590 3/17/30 5,209,082
700,000 Olympic Auto Receivable Trust, Ser.
1996-C, Class A4 6.800 03/15/02 709,695
575,000 Olympic Auto Receivable Trust, Ser.
1997-A, Class A4 6.625 12/15/02 585,586
1,300,000 Premier Auto Trust, Ser. 1997-2,
Class A4 6.250 06/06/01 1,314,716
1,160,000 Providian Trust, Ser. 1997-4, Class A 6.250 06/15/07 1,194,638
692,288 Residential Asset Securities Corp.,
Ser. 1997-KS1, Class AI2 7.073 04/25/28 694,939
1,562,000 Saxon Asset Securities Trust, Ser.
1997-1, Class AF5 7.325 01/25/12 1,628,210
</TABLE>
<TABLE>
<CAPTION>
Principal Interest Maturity
Amount Rate Date Value +
<C> <S> <C> <C> <C>
$700,000 Saxon Asset Securities Trust, Ser.
1997-3, Class AF6 6.730% 02/25/27 $717,332
1,875,000 UCFC Home Equity Loan IO, Ser.
1997-C, Class AIO 8.000 09/15/00 234,082
1,125,000 UCFC Home Equity Loan, Ser. 1996-
B1, Class A5 7.650 06/15/20 1,169,881
,221,088 Union Acceptance Corp. IO Strip,
Ser. 1996-C, Class I 2.750 10/08/03 117,474
577,935 Union Acceptance Corp. IO, Ser.
1996-D, Class I 3.000 01/08/04 15,600
2,719,864 Union Acceptance Corp. IO, Ser.
1997-B, Class I 1.850 06/08/27 59,179
1,323,503 Union Acceptance Corp. IO, Ser.
1996-A, Class I 3.000 05/07/99 21,920
-----------
Total Asset and Mortgage-Backed
Securities (Cost $26,295,605) 26,660,785
-----------
Convertible Debt -- 0.0% +++
50,000 Rouse Co. (Cost $47,576) 8.500 01/15/03 54,035
-----------
Total Bonds (Cost $196,932,351) 200,416,799
-----------
<CAPTION>
Number
of Shares
<C> <S> <C> <C> <C>
Common Stock -- 0.3%
22,000 National Westminster (Cost $572,440) 587,125
-----------
Preferred Stocks -- 0.9%
735 Centaur Funding Corp.,
9.080% (144A) (a) 759,153
8,080 Citigroup Inc. 6.213% 428,240
13,030 Duke Realty Investments, 7.990% 658,829
-----------
Total Preferred Stocks
(Cost $1,828,595) 1,846,222
-----------
Total Long Term Investments
(Cost $199,333,386) 202,850,146
-----------
<CAPTION>
Principal
Amount
<C> <S> <C> <C> <C>
Short Term Investments -- 12.2%
Commercial Paper -- 1.5%
$3,000,000 Commercial Credit
(Cost $3,000,000) 4.880% 01/06/99 3,000,000
-----------
Repurchase Agreements -- 10.7%
15,877,343 Investors Bank & Trust Co. Repurchase Agreement,
issued 12/31/98, proceeds at maturity $15,884,841
(Collateralized by $6,339,213 FHLMC ARM, 6.995%,
due 12/1/25, with a market value of $6,603,997,
$6,887,555 FNMA, 6.500%, due 7/1/14, with a market
value of $7,000,695, $2,999,120 FNMA ARM, 7.223%,
due 9/1/25, with a market value of
$3,066,837) 4.250% 01/04/99 15,877,343
</TABLE>
30
<PAGE>
TIFF Bond Fund / Schedule of Investments December 31, 1998
<TABLE>
<CAPTION>
Principal Interest Maturity
Amount Rate Date Value +
<C> <S> <C> <C> <C>
$5,300,000 Morgan Stanley Dean Witter & Co., Repurchase
Agreement, issued 12/22/98, proceeds at
maturity $5,303,092 (Collateralized by
$5,500,000 FHLMC Gold 6.000%, due 8/1/28,
with a market value of
$5,433,900) 5.250% 01/04/99 $ 5,300,000
------------
Total Repurchase Agreements (Cost $21,177,343) 21,177,343
------------
U.S. Treasury Security -- 0.0% +++
25,000 U.S. Treasury Bill ++ (Cost
$24,711) 4.213# 04/15/99 24,711
------------
Total Short Term Investments
(Cost $24,202,054) 24,202,054
------------
Total Investments
(Cost $223,535,440) -- 114.8% 227,052,200
Liabilities in excess of other assets --
(14.8)% (29,400,231)
------------
Net Assets -- 100.0% $197,651,969
============
</TABLE>
Summary of Industry Classifications (as a % of total market value):
<TABLE>
<S> <C>
Banking 3.4%
Basic Industries 0.9
Consumer Cyclical 3.9
Consumer Non-Cyclical 0.6
Energy 2.2
Financial Services 22.2
Industrial 3.1
Insurance 2.0
Municipal Obligations 1.7
Real Estate 1.2
Repurchase Agreements 9.4
Technology 1.5
U.S. Government Securities 46.1
Utilities 1.8
-----
Total 100.0%
=====
</TABLE>
+ See Note 2 to the Financial Statements.
++ Security or a portion thereof is held with a broker as initial margin for
financial futures contracts. See Appendix C to Notes to Financial
Statements.
+++ Rounds to less than 0.1%
# 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 December 31, 1998 these
securities were valued at $14,202,234 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) Coupon Rate is 7.85% through September 2006, and 8.05% thereafter.
(d) Security is valued in good faith under procedures established by the board
of directors of the Fund.
ARMAdjustable Rate Mortgage
FHLMCFederal Home Loan Mortgage Corporation
FHRFreddie Mac Remic
FNMAFederal National Mortgage Association
FRNFloating Rate Note
GNMAGovernment National Mortgage Association
IOInterest-Only Obligation
MTNMedium-Term Note
TBASecurity is subject to delayed delivery.
See accompanying Notes to Financial Statements.
31
<PAGE>
TIFF Short-Term Fund December 31, 1998
[GRAPH APPEARS HERE]
<TABLE>
<CAPTION>
- ----------------------------------------------------------------------------
Comparison of Change in Value of $100,000 Investment in TIFF Short-Term Fund
and the Merrill Lynch 182-Day Treasury Bill Index
- --------------------------------------------------------
Past performance is not predictive of future performance.
- --------------------------------------------------------
Merrill Lynch
TIFF Short-Term Fund 182-Day Treasury Bill Index
<S> <C> <C>
*5/31/94 50000 50000
6/30/94 50177 50222
7/29/94 50460 50434
8/31/94 50706 50631
9/30/94 50850 50774
10/31/94 51169 51003
11/30/94 51295 51155
12/30/94 51526 51375
1/31/95 51842 51709
2/28/95 52184 52012
3/31/95 52396 52276
4/28/95 52699 52553
5/31/95 53063 52871
6/30/95 53326 53150
7/31/95 53585 53419
8/31/95 53839 53679
9/29/95 54145 53905
10/31/95 54297 54170
11/30/95 54558 54433
12/29/95 54841 54736
1/31/96 55157 55007
2/29/96 55304 55202
3/29/96 55450 55391
4/30/96 55618 55615
5/31/96 55848 55843
6/28/96 56130 56080
7/31/96 56342 56329
8/30/96 56652 56578
9/30/96 56914 56872
10/31/96 57242 57146
11/29/96 57513 57398
12/31/96 57735 57641
1/31/97 58000 57892
2/28/97 58269 58160
3/31/97 58445 58386
4/30/97 58639 58662
5/30/97 58980 58980
6/30/97 59258 59266
7/31/97 59592 59538
8/29/97 59815 59780
9/30/97 60088 60085
10/31/97 60369 60358
11/28/97 60583 60577
12/31/97 60861 60854
1/30/98 61267 61167
2/27/98 61491 61396
3/31/98 61758 61697
4/30/98 62042 61967
5/29/98 62323 62240
6/30/98 62613 62540
7/31/98 62878 62837
8/31/98 63226 63161
9/30/98 63567 63540
10/30/98 63777 63808
11/30/98 63987 63979
12/31/98 64263 64249
</TABLE>
*Commencement of operations.
- --------------------------------------------------------------------------------
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 the six month average
duration 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, TIP imposes on them
a number of restrictions, 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).
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, but the very modest expenses it incurs (about
0.35% per annum) have caused the Fund as a whole to outperform its benchmark by
an almost indiscernible margin (28.53% cumulative return versus 28.50% 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 55-month life, the Fund has
outperformed the average money market mutual fund tracked by Lipper by 409
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.
Investment Performance (For Periods Ended December 31, 1998)
<TABLE>
<CAPTION>
Total Return
---------------------------------------------------
Year Cumulative Since Annualized Since
Ended Inception (5/31/94) Inception (5/31/94)
---------------------------------------------------
<S> <C> <C> <C>
TIFF Short-Term Fund 5.6% 28.5% 5.6%
Merrill Lynch 182-Day T-Bill
Index 5.6% 28.5% 5.6%
</TABLE>
32
<PAGE>
TIFF Short-Term Fund / Schedule of Investments December 31, 1998
<TABLE>
<CAPTION>
Principal Interest
Amount Rate Maturity Value +
<C> <S> <C> <C> <C>
Asset & Mortgage-Backed Securities -- 69.1%
$2,000,000 Advanta Business Corp., Ser. 1998-
1, Class A1 5.770% 12/15/06 $2,003,200
2,548,262 Advanta Mortgage Loan Trust, Ser.
1997-1, Class A2 7.100 04/25/20 2,560,863
818,200 Advanta Mortgage Loan Trust (FRN),
Ser. 1997-4, Class A8 5.794 02/25/24 816,580
188,138 Associates Home Equity Loan Trust,
Ser. 1998-1, Class A1 6.620 01/15/12 188,027
3,000,000 BankBoston Commercial Loan Master,
LLC, (144A) (FRN) Ser. 1998-1,
Class A1 (a) 5.563 11/16/03 3,000,000
264,659 BCI Home Equity Loan, Ser. 1996-1,
Class A 5.836 04/28/26 264,264
3,000,000 Carco Auto Loan Master Trust (FRN),
Ser. 1998-1, Class A1 5.318 06/16/03 2,983,440
627,397 Case Equipment Loan Trust, Ser.
1998-A, Class A2 5.592 07/15/01 628,332
3,000,000 Case Equipment Loan Trust, Ser.
1998-C, Class A2 5.490 08/15/02 3,003,750
309,428 Champion Home Equity Loan Trust,
Ser. 1997-2, Class A1 6.590 11/25/10 309,286
1,238,779 Chase Manhattan Auto Owner Trust,
Ser. 1996-C, Class A3 5.950 11/15/00 1,243,969
144,725 Chase Manhattan Auto Owner Trust,
Ser. 1997-B, Class A2 6.100 01/17/00 144,860
1,978,739 Deutsche Financial Capital
Securities, Ser. 1998-I, Class A1 6.050 04/15/28 1,980,500
1,000,000 Discover Card Master Trust I (FRN),
Ser. 1994-2, Class A 5.885 10/16/04 1,003,770
512,943 EQCC Home Equity Loan Trust (FRN),
Ser. 1997-3, Class A10 5.710 11/15/28 507,732
124,610 EQCC Home Equity Loan Trust, Ser.
1996-4, Class A3 6.260 11/15/06 124,695
2,456,809 EQCC Home Equity Loan Trust, Ser.
1998-2, Class A1F 6.235 04/15/08 2,461,157
2,575,000 EQCC Home Equity Loan Trust, Ser.
1997-1, Class A3 6.840 09/15/11 2,602,797
1,000,000 First Chicago Master Trust II
(FRN), Ser. 1996-R, Class A 5.606 07/15/01 999,550
1,069,403 FNMA, Ser. 1993-163, Class BK 6.150 11/25/17 1,069,772
291,643 Ford Credit Auto Owner Trust, Ser.
1997-B, Class A2 5.950 01/15/00 291,944
</TABLE>
<TABLE>
<CAPTION>
Principal Interest
Amount Rate Maturity Value +
<C> <S> <C> <C> <C>
$2,452,759 Ford Credit Auto Owner Trust, Ser.
1998-B, Class A2 5.800% 10/15/00 $2,463,232
2,092,846 GE Capital Mortgage Services, Inc.,
Ser. 1998-HE, Class A1 6.530 01/25/11 2,093,809
2,789,180 Green Tree Home Improvement Loan
Trust, Ser. 1998-D, Class HEA1 5.980 08/15/29 2,796,209
1,289,786 HCF Revolving Home Equity Loan
Trust (FRN), Ser. 1996-1, Class A 5.761 07/20/17 1,285,775
709,028 HFC Home Equity Loan Asset Backed
Certificates (FRN), Ser. 1992-2,
Class A2 5.985 10/20/07 708,348
3,000,000 Lakeshore Commercial Loan Master
Trust (144A)(FRN), Ser. 1998-AA,
Class A2 (a) 5.314 07/25/04 2,988,279
3,000,000 MBNA Master Credit Card Trust
(FRN), Ser. 1994-2, Class A 5.773 06/15/01 3,001,170
250,000 MBNA Master Credit Card Trust, Ser.
1993-3, Class A 5.400 09/15/00 249,568
294,807 Norwest Auto Trust, Ser. 1996-A,
Class A3 5.900 03/15/00 295,214
1,500,000 People's Bank Credit Card Master
Trust (FRN), Ser. 1996-1, Class A 5.686 11/15/04 1,498,350
1,118,510 Premier Auto Trust, Ser. 1996-3,
Class A3 6.500 03/06/00 1,120,960
536,066 Premier Auto Trust, Ser. 1996-4,
Class A3 6.200 11/06/00 537,513
3,000,000 Premier Auto Trust, Ser. 1998-4,
Class A2 5.560 04/08/01 3,009,060
581,136 Residential Funding Mortgage
Securities (FRN), Ser. 1998-HS1,
Class A 5.741 06/22/23 572,055
329,962 WFS Financial Owner Trust, Ser.
1997-B, Class A2 6.050 07/20/00 330,886
183,339 World Omni Auto Lease
SecuritizationTrust, Ser. 1996-B,
Class A1 5.950 11/15/02 183,396
452,728 World Omni Auto Lease
Securitization Trust 6.300 06/25/02 453,435
----------
Total Asset & Mortgage-Backed
Securities (Cost $51,790,292) 51,775,747
----------
Bank Obligations -- 12.0%
3,000,000 Bank of Austria Yankee CD 5.710 # 06/07/99 2,998,202
3,000,000 Harris Bank Yankee CD 5.050 # 05/10/99 3,000,000
3,000,000 Rabobank Euro CD 5.260 # 01/15/99 3,000,011
----------
Total Bank Obligations (Cost
$8,998,245) 8,998,213
----------
</TABLE>
33
<PAGE>
TIFF Short-Term Fund / Schedule of Investments December 31, 1998
<TABLE>
<CAPTION>
Principal Interest
Amount Rate Maturity Value +
<C> <S> <C> <C> <C>
Commerical Paper -- 0.7%
$500,000 Repsol International Finance CP
(Cost $493,663) 5.070% # 03/29/99 $493,663
-----------
Time Deposit -- 3.9%
2,951,000 Investors Bank & Trust (Cost
$2,951,000) 4.500 01/04/99 2,951,000
-----------
U.S. Treasury Bills -- 13.8%
550,000 U.S. Treasury Bill++ 4.350 # 05/27/99 538,761
10,000,000 U.S. Treasury Bill 4.370 # 07/01/99 9,776,544
-----------
Total U.S. Treasury Bills
(Cost $10,315,273) 10,315,305
-----------
Total Investments (Cost $74,548,473) --
99.5% 74,533,928
Other assets in excess of liabilities --
0.5% 373,468
-----------
Net Assets -- 100.0% $74,907,396
===========
</TABLE>
+ See Note 2 to the Financial Statements.
++ Security or a portion thereof is held with a broker as initial margin for
financial futures contracts. See Appendix C to Notes to 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 effect as of December
31, 1998.
FNMA Federal National Mortgage Association
CD Certificate of Deposit
CP Commercial Paper
(a) Security exempt from registration under Rule 144A of the Securities Act of
1993. These securities may be resold in transactions exempt from
registration, normally to qualified buyers. At December 31, 1998, the
aggregate value of these securities was $5,988,279 or 8.0% of net assets.
See accompanying Notes to Financial Statements.
34
<PAGE>
Statement of Assets and Liabilities December 31, 1998
<TABLE>
<CAPTION>
TIFF Multi- TIFF International TIFF Emerging
Asset Fund Equity Fund Markets Fund
(MAF) (IEF) (EMF)
<S> <C> <C> <C>
Assets
Investments in securities, at
value
(Cost: MAF $294,700,144; IEF
$256,858,209; EMF $84,314,260) $288,010,744 $267,198,498 $ 59,228,392
Cash -- 379 459
Foreign currency (Cost: MAF
$1,097; IEF $13,447; EMF
$501,504) 912 13,623 498,610
Receivable for securities sold 20,969,239 11,564 114,514
Interest receivable 448,747 30,829 10,732
Dividends receivable 313,467 454,680 384,984
Variation margin on financial
futures contracts receivable 214,021 168,033 --
Deferred organizational costs 1,339 1,184 518
Other assets 2,001 -- 1,000
------------ ------------ ------------
Total assets 309,960,470 267,878,790 60,239,209
------------ ------------ ------------
Liabilities
Payable for collateral on
securities on loan -- 5,716,676 1,867,115
Payable for securities
purchased 17,916,357 95,143 158,146
Payable for capital stock
repurchased 99,250 -- --
Payable for forward currency
contracts 59,393 1,965,492 180
Accrued expenses and other
liabilities 38,139 71,599 46,359
------------ ------------ ------------
Total liabilities 18,113,139 7,848,910 2,071,800
------------ ------------ ------------
Net Assets $291,847,331 $260,029,880 $ 58,167,409
============ ============ ============
Shares Outstanding (authorized
500,000,000 shares, par value
$0.001, for each Fund) 25,566,716 23,280,346 11,216,434
============ ============ ============
Net Assets Value Per Share $11.42 $11.17 $5.19
====== ====== =====
Components of Net Assets:
Capital stock $305,509,541 $254,096,551 $105,271,916
Distribution in excess of net
investment income (5,135,002) (4,292,479) (5,279,347)
Accumulated net realized gain
(loss) on investments (3,488,597) 1,445,634 (16,736,767)
Net unrealized appreciation
(depreciation) on investments,
short sales, financial futures
and option contracts, foreign
currency contracts, and
translation of other assets
and liabilities denominated in
foreign currencies (5,038,611) 8,780,174 (25,088,393)
------------ ------------ ------------
$291,847,331 $260,029,880 $ 58,167,409
============ ============ ============
</TABLE>
See accompanying Notes to Financial Statements.
35
<PAGE>
Statement of Assets and Liabilities December 31, 1998
<TABLE>
<CAPTION>
TIFF U.S. TIFF Bond TIFF Short-
Equity Fund Fund Term Fund
(USEF) (BF) (STF)
<S> <C> <C> <C>
Assets
Investments in securities, at value
(Cost: USEF $251,128,311; BF
$223,535,440; STF $74,548,473) $286,708,294 $227,052,200 $74,533,928
Cash -- 160,912 --
Receivable for capital stock sold -- -- 43,135
Receivable for securities sold 36,016,946 21,893,282 157,212
Interest receivable 510 1,943,515 348,037
Dividends receivable 305,047 23,095 --
Variation margin on financial futures
contracts receivable 75,284 -- --
Deferred organizational costs 1,583 849 213
Due from money manager -- -- 5,094
Due from custodian -- -- 1,250
Other assets -- 129 --
------------ ------------ -----------
Total assets 323,107,664 251,073,982 75,088,869
------------ ------------ -----------
Liabilities
Payable for securities purchased 9,448,191 37,223,257 --
Payable for capital stock repurchased -- 15,730,411 130,250
Due to brokers for short sales 758,912 -- --
Market value of securities sold short
(proceeds: USEF $77,718 ) 6 -- --
Payable for securities sold short -- -- --
Variation margin on financial futures
contracts payable -- 2,297 963
Dividends payable on short sales 4,866 -- --
Dividends payable from net investment
income -- 438,991 26,017
Due to custodian 294,430 -- 24,243
Accrued expenses and other
liabilities 14,608 27,057 --
------------ ------------ -----------
Total liabilities 10,521,013 53,422,013 181,473
------------ ------------ -----------
Net Assets $312,586,651 $197,651,969 $74,907,396
============ ============ ===========
Shares Outstanding (authorized
500,000,000 shares, par value
$0.001, for each Fund) 20,013,187 19,210,571 7,513,632
============ ============ ===========
Net Assets Value Per Share $15.62 $10.29 $9.97
====== ====== =====
Components of Net Assets
Capital stock $263,302,017 $193,665,746 $75,191,848
Undistributed (distribution in excess
of) net investment income (1,274,609) (368,940) 6,137
Accumulated net realized gain (loss)
on investments 14,819,023 633,309 (284,257)
Net unrealized appreciation
(depreciation) on investments, short
sales and financial futures and
option contracts, foreign currency
contracts and translations of other
assets and liabilities denominated
in foreign currencies 35,740,220 3,721,854 (6,332)
------------ ------------ -----------
$312,586,651 $197,651,969 $74,907,396
============ ============ ===========
</TABLE>
See accompanying Notes to Financial Statements.
36
<PAGE>
Statement of Operations Year Ended December 31, 1998
<TABLE>
<CAPTION>
TIFF Multi- TIFF International TIFF Emerging
Asset Fund Equity Fund Markets Fund
(MAF) (IEF) (EMF)
<S> <C> <C> <C>
Investment income
Interest $ 5,274,249 $ 716,553 $ 248,216
Dividends (net of withholding
taxes of: MAF $277,274; IEF
$598,931; EMF $27,767) 3,509,108 5,206,585 1,530,663
----------- ------------ ------------
Total investment income 8,783,357 5,923,138 1,778,879
----------- ------------ ------------
Operating expenses
Investment advisory fees 700,888 389,897 104,931
Money manager fees 421,797 757,181 1,531,144
Custodian and accounting fees 523,804 485,178 331,173
Administration fees 332,577 194,693 38,406
Shareholder recordkeeping fees 26,783 26,577 12,845
Professional fees 171,778 149,268 93,990
Tax expense 13,446 141,534 78,356
Insurance expense 17,078 12,992 3,217
Registration and filing fees 66,730 25,351 4,591
Amortization of organizational
costs 3,213 1,706 1,417
Miscellaneous fees and expenses 10,643 -- --
----------- ------------ ------------
2,288,737 2,184,377 2,200,070
Fee waivers/reimbursements -- (70,517) (38,922)
----------- ------------ ------------
Total Expenses 2,288,737 2,113,860 2,161,148
----------- ------------ ------------
Net Investment income (loss) 6,494,620 3,809,278 (382,269)
----------- ------------ ------------
Net realized and unrealized
gain (loss) on investments,
financial futures and option
contracts, forward currency
contracts, short sales and
foreign currency related
transactions
Net realized gain (loss) on:
Investments (12,242,171) 15,615,838 (11,716,730)
Short sales 1,223,267 -- --
Financial futures and options
contracts 5,870,579 (936,644) --
Forward currency contracts and
foreign currency related
transactions (922,857) 581,104 (381,073)
----------- ------------ ------------
Net realized gain (loss) (6,071,182) 15,260,298 (12,097,803)
----------- ------------ ------------
Net change in unrealized
appreciation (depreciation)
on:
Investments (1,241,360) (12,191,609) (16,744,161)
Short sales 19,085 -- --
Financial futures and options
contracts 1,709,616 411,582 --
Forward currency contracts and
foreign currency related
transactions (20,026) (2,228,036) 91,241
----------- ------------ ------------
Net change in unrealized
appreciation (depreciation) 467,315 (14,008,063) (16,652,920)
----------- ------------ ------------
Net realized and unrealized
gain (loss) (5,603,867) 1,252,235 (28,750,723)
----------- ------------ ------------
Net increase (decrease) in net
assets resulting from
operations $ 890,753 $ 5,061,513 $(29,132,992)
=========== ============ ============
</TABLE>
See accompanying Notes to Financial Statements.
37
<PAGE>
Statement of Operations Year Ended December 31, 1998
<TABLE>
<CAPTION>
TIFF U.S. TIFF TIFF Short-
Equity Fund Bond Fund Term Fund
(USEF) (BF) (STF)
<S> <C> <C> <C>
Investment income
Interest $ 1,755,518 $11,851,974 $3,466,220
Dividends (net of withholding taxes of:
USEF $27,564 ) 3,254,580 107,946 --
------------ ----------- ----------
Total investment income 5,010,098 11,959,920 3,466,220
------------ ----------- ----------
Operating expenses
Investment advisory fees 440,052 190,197 18,055
Money manager fees 1,083,593 178,353 120,365
Custodian and accounting fees 211,342 236,380 49,375
Administration fees 161,064 104,422 33,045
Shareholder recordkeeping fees 32,434 25,764 18,502
Professional fees 124,905 103,286 62,962
Insurance expense 14,132 8,921 3,478
Registration and filing fees 36,886 24,160 10,844
Amortization of organizational costs 3,800 2,037 511
Miscellaneous fees and expenses 7,275 10,186 3,692
------------ ----------- ----------
2,115,483 883,706 320,829
Fee waivers/reimbursements -- -- (107,861)
------------ ----------- ----------
Total expenses 2,115,483 883,706 212,968
------------ ----------- ----------
Net investment income 2,894,615 11,076,214 3,253,252
------------ ----------- ----------
Net realized and unrealized gains
(losses) on investments, financial
futures and options contracts, forward
currency contracts, short sales and
foreign currency related transactions
Net realized gain (loss) on:
Investments 33,942,961 2,342,969 (6,158)
Short sales 334,852 -- --
Financial futures and options contracts 5,186,256 (349,013) 13,871
Forward currency contracts and foreign
currency related transactions (818) -- --
------------ ----------- ----------
Net realized gain (loss) 39,463,251 1,993,956 7,713
------------ ----------- ----------
Net change in unrealized appreciation
(depreciation) on:
Investments (9,934,388) 266,599 1,777
Short sales (993,055) -- --
Financial futures and options contracts (25,625) 184,191 5,642
Forward currency contracts and foreign
currency related transactions -- -- --
------------ ----------- ----------
Net change in unrealized appreciation
(depreciation) (10,953,068) 450,790 7,419
------------ ----------- ----------
Net realized and unrealized gains
(losses) 28,510,183 2,444,746 15,132
------------ ----------- ----------
Net increase (decrease) in net assets
resulting from operations $ 31,404,798 $13,520,960 $3,268,384
============ =========== ==========
</TABLE>
See accompanying Notes to Financial Statements.
38
<PAGE>
Statement of Changes in Net Assets
<TABLE>
<CAPTION>
TIFF Multi-Asset Fund TIFF International Equity Fund
-------------------------- --------------------------------
Year Year Year Year
Ended Ended Ended Ended
12/31/98 12/31/97 12/31/98 12/31/97
------------ ------------ --------------- ---------------
<S> <C> <C> <C> <C>
Increase (decrease) in
net assets from
operations:
Net investment income $ 6,494,620 $ 11,022,582 $ 3,809,278 $ 1,746,073
Net realized gain (loss)
on investments,
financial futures and
options contracts,
short sales, forward
currency contracts, and
foreign currency-
related transactions (6,071,182) 21,368,653 15,260,298 5,550,182
Net change in unrealized
appreciation
(depreciation) on
investments, financial
futures and options
contracts, short sales,
forward currency
contracts and on
translation of other
assets and liabilities
in foreign currencies 467,315 (21,284,103) (14,008,063) (6,029,163)
------------ ------------ --------------- ---------------
Net increase (decrease)
in net assets resulting
from operations 890,753 11,107,132 5,061,513 1,267,092
------------ ------------ --------------- ---------------
Distributions:
From net investment
income (2,001,230) (8,869,154) (2,692,547) (3,052,090)
In excess of net
investment income (5,135,002) (4,258,832) (4,292,479) (1,731,958)
From net realized gains -- (19,429,947) (13,748,528) (5,486,586)
------------ ------------ --------------- ---------------
Decrease in net assets
resulting from
distributions (7,136,232) (32,557,933) (20,733,554) (10,270,634)
------------ ------------ --------------- ---------------
Capital share
transactions, net (see
Appendix D) (84,224,588) 185,523,998 34,630,023 30,617,333
------------ ------------ --------------- ---------------
Total increase
(decrease) in net
assets (90,470,067) 164,073,197 18,957,982 21,613,791
Net assets
Beginning of year 382,317,398 218,244,201 241,071,898 219,458,107
------------ ------------ --------------- ---------------
End of year $291,847,331 $382,317,398 $ 260,029,880 $ 241,071,898
============ ============ =============== ===============
Distributions in excess
of net investment
income $ (5,135,002) $ (4,258,832) $ (4,292,479) $ (1,731,958)
</TABLE>
See accompanying Notes to Financial Statements.
39
<PAGE>
Statement of Changes in Net Assets
<TABLE>
<CAPTION>
TIFF Emerging Markets Fund TIFF U.S. Equity Fund
---------------------------- --------------------------
Year Ended Year Ended Year Ended Year Ended
12/31/98 12/31/97 12/31/98 12/31/97
------------- ------------- ------------ ------------
<S> <C> <C> <C> <C>
Increase (decrease) in
net assets from
operations:
Net investment income
(loss) $ (382,269) $ 823,121 $ 2,894,615 $ 2,962,614
Net realized gain (loss)
on investments,
financial futures and
options contracts,
short sales, forward
currency contracts and
foreign currency-
related transactions (12,097,803) 4,698,981 39,463,251 36,108,866
Net change in unrealized
appreciation
(depreciation) on
investments, financial
futures and options
contracts, short sales,
forward currency
contracts and on
translation of other
assets and liabilities
in foreign currencies (16,652,920) (5,120,338) (10,953,068) 23,126,178
------------- ------------ ------------ ------------
Net increase (decrease)
in net assets resulting
from operations (29,132,992) 401,764 31,404,798 62,197,658
------------- ------------ ------------ ------------
Distributions:
From net investment
income -- (2,295,047) (1,307,917) (5,880,407)
In excess of net
investment income (1,837,831) (2,594,353) (1,274,609) (1,590,691)
From net realized gains -- -- (31,677,567) (29,924,738)
------------- ------------ ------------ ------------
Decrease in net assets
resulting from
distributions (1,837,831) (4,889,400) (34,260,093) (37,395,836)
------------- ------------ ------------ ------------
Capital share
transactions, net (see
Appendix D) 5,302,196 (1,412,129) 59,727,995 54,115,616
------------- ------------ ------------ ------------
Total increase
(decrease) in net
assets (25,668,627) (5,899,765) 56,872,700 78,917,438
Net assets
Beginning of year 83,836,036 89,735,801 255,713,951 176,796,513
------------- ------------ ------------ ------------
End of year $ 58,167,409 $ 83,836,036 $312,586,651 $255,713,951
============= ============ ============ ============
Distributions in excess
of net investment
income $ (5,279,347) $ (2,594,353) $ (1,274,609) $ (1,590,691)
</TABLE>
See accompanying Notes to Financial Statements.
40
<PAGE>
Statement of Changes in Net Assets
<TABLE>
<CAPTION>
TIFF Bond Fund TIFF Short-Term Fund
-------------------------- -------------------------
Year Ended Year Ended Year Ended Year Ended
12/31/98 12/31/97 12/31/98 12/31/97
------------ ------------ ----------- ------------
<S> <C> <C> <C> <C>
Increase (decrease) in
net assets from
operations:
Net investment income $ 11,076,214 $ 9,879,502 $ 3,253,252 $ 2,149,723
Net realized gain (loss)
on investments,
financial futures and
options contracts,
short sales, forward
currency contracts and
foreign currency-
related transactions 1,993,956 1,505,304 7,713 (131,766)
Net change in unrealized
appreciation on
investments, financial
futures and options
contracts, short sales,
forward currency
contracts and on
translation of other
assets and liabilities
in foreign currencies 450,790 2,617,325 7,419 25,667
------------ ------------ ----------- ------------
Net increase in net
assets resulting from
operations 13,520,960 14,002,131 3,268,384 2,043,624
------------ ------------ ----------- ------------
Distributions:
From net investment
income (10,988,853) (9,789,136) (3,219,795) (2,153,026)
In excess of net
investment income (368,940) (100,419) -- (41,702)
From net realized gains (1,252,461) (1,323,191) -- --
------------ ------------ ----------- ------------
Decrease in net assets
resulting from
distributions (12,610,254) (11,212,746) (3,219,795) (2,194,728)
------------ ------------ ----------- ------------
Capital share
transactions, net (see
Appendix D) 23,389,207 43,071,571 40,427,522 (28,887,861)
------------ ------------ ----------- ------------
Total increase
(decrease) in net
assets 24,299,913 45,860,956 40,476,111 (29,038,965)
Net assets
Beginning of year 173,352,056 127,491,100 34,431,285 63,470,250
------------ ------------ ----------- ------------
End of year $197,651,969 $173,352,056 $74,907,396 $ 34,431,285
============ ============ =========== ============
Undistributed
(distributions in
excess of) net
investment income $ (368,940) $ (100,419) $ 6,137 $ (41,702)
</TABLE>
See accompanying Notes to Financial Statements.
41
<PAGE>
TIFF Multi-Asset Fund -- Financial Highlights
<TABLE>
<CAPTION>
Year Year Year Period
Ended Ended Ended from 3/31/95*
12/31/98 12/31/97 12/31/96 to 12/31/95
-------- -------- -------- -------------
<S> <C> <C> <C> <C>
For a share outstanding throughout
each period
Net asset value, beginning of
period $ 11.65 $ 12.08 $ 11.13 $ 10.00
-------- -------- -------- -------
Income from investment operations:
Net investment income 0.20 0.44 0.17 0.26
Net realized and unrealized gain
(loss) on investments, financial
futures and options contracts,
short sales, forward currency
contracts and foreign currency-
related transactions (0.17) 0.21 1.45 1.14
-------- -------- -------- -------
Total from investment operations 0.03 0.65 1.62 1.40
-------- -------- -------- -------
Less distributions from:
Net investment income (0.07) (0.30) (0.18) (0.24)
Amounts in excess of net
investment income (0.19) (0.15) (0.13) --
Net realized gains -- (0.63) (0.36) (0.03)
-------- -------- -------- -------
Total distributions (0.26) (1.08) (0.67) (0.27)
-------- -------- -------- -------
Net asset value, end of period $ 11.42 $ 11.65 $ 12.08 $ 11.13
======== ======== ======== =======
Total return (c) 0.22% 5.51% 14.72% 13.87%(b)
Ratios/supplemental data
Net assets, end of period (000s) $291,847 $382,317 $218,244 $92,630
Ratio of expenses to average net
assets 0.65% 0.72% 1.03% 0.80%(a)
Ratio of net investment income to
average net assets 1.85% 3.30% 1.99% 4.00%(a)
Portfolio turnover 196.06% 181.51% 100.66% 97.35%(b)
</TABLE>
- -------
(a) Annualized.
(b) Not annualized.
(c) Total return includes the effects of entry/exit fees received by the Fund;
however, net asset value per share at the beginning and end of each period
used for calculating total return excludes such entry/exit fees.
* Commencement of operations.
See accompanying Notes to Financial Statements.
42
<PAGE>
TIFF International Equity Fund -- Financial Highlights
<TABLE>
<CAPTION>
Year Year Year Year Period from
Ended Ended Ended Ended 5/31/94 *
12/31/98 12/31/97 12/31/96 12/31/95 to 12/31/94
-------- -------- -------- -------- -----------
<S> <C> <C> <C> <C> <C>
For a share outstanding
throughout 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 0.19 0.17 0.10 0.15 0.05
Net realized and
unrealized gain (loss)
on investments,
financial futures and
options contracts,
short-sales, forward
currency contracts and
foreign currency-
related transactions 0.15 (0.06) 1.62 0.83 0.06
-------- -------- -------- -------- -------
Total from investment
operations 0.34 0.11 1.72 0.98 0.11
-------- -------- -------- -------- -------
Less distributions from:
Net investment income (0.12) (0.16) (0.09) (0.14) (0.04)
Amounts in excess of net
investment income (0.20) (0.09) -- -- (0.01)
Net realized gains (0.62) (0.28) (0.26) -- --
Amounts in excess of net
realized gains -- -- -- -- (0.08)
-------- -------- -------- -------- -------
Total distributions (0.94) (0.53) (0.35) (0.14) (0.13)
-------- -------- -------- -------- -------
Net asset value, end of
period $ 11.17 $ 11.77 $ 12.19 $ 10.82 $ 9.98
======== ======== ======== ======== =======
Total return (d) 3.03%(c) 0.91% 15.94% 9.85% 0.98%(b)(c)
Ratios/supplemental data
Net assets, end of
period (000s) $260,030 $241,072 $219,458 $155,422 $89,309
Ratio of expenses to
average net assets 0.81%(e) 1.21% 1.11% 1.05% 1.08%(a)
Ratio of expenses to
average net assets
before expense waivers 0.84%(e) 1.21% 1.11% 1.05% 1.27%(a)
Ratio of net investment
income to average net
assets 1.47% 0.72% 0.91% 1.48% 0.95%(a)
Portfolio turnover 30.62% 25.55% 32.40% 32.91% 14.71%(b)
</TABLE>
- -------
(a) Annualized.
(b) Not annualized.
(c) Total return would have been lower had certain expenses not been waived or
reimbursed.
(d) Total return includes the effects of entry/exit fees received by the Fund;
however, net asset value per share at the beginning and end of each period
used for calculating total return excludes such entry/exit fees.
(e) Expenses include tax expense for the year ended December 31, 1998. Without
the tax expense, the ratio of expenses to average net assets and the ratio
of expenses to average net assets before expense waivers would have been
0.76% and 0.79%, respectively.
* Commencement of operations.
See accompanying Notes to Financial Statements.
43
<PAGE>
TIFF Emerging Markets Fund -- Financial Highlights
<TABLE>
<CAPTION>
Year Year Year Year Period from
Ended Ended Ended Ended 5/31/94 *
12/31/98 12/31/97 12/31/96 12/31/95 to 12/31/94
-------- -------- -------- -------- -----------
<S> <C> <C> <C> <C> <C>
For a share outstanding
throughout 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
(loss) (0.01) 0.33 0.01 -- 0.01
Net realized and
unrealized gain (loss)
on investments,
financial futures and
option contracts,
short-sales, forward
currency contracts and
foreign currency-
related transactions (2.72) (0.36) 0.21 (0.79) (0.71)
------- ------- ------- ------- -------
Total from investment
operations (2.73) (0.03) 0.22 (0.79) (0.70)
------- ------- ------- ------- -------
Less distributions from:
Net investment income -- (0.24) (0.04) (0.00)# (0.01)
Amounts in excess of net
investment income (0.17) (0.27) (0.00)# (0.00)# --
Net realized gains -- -- (0.00)# -- --
Amounts in excess of net
realized gains -- -- -- (0.00)# (0.05)
------- ------- ------- ------- -------
Total distributions (0.17) (0.51) (0.04) (0.00)# (0.06)
------- ------- ------- ------- -------
Net asset value, end of
period $ 5.19 $ 8.09 $ 8.63 $ 8.45 $ 9.24
======= ======= ======= ======= =======
Total return (d) (33.38%)(c) (0.40%) 2.51% (8.39%) (6.97%)(b)(c)
Ratios/supplemental data
Net assets, end of
period (000s) $58,167 $83,836 $89,736 $59,486 $50,032
Ratio of expenses to
average net assets 3.09% (e) 1.56% 1.62% 2.35% 1.83% (a)
Ratio of expenses to
average net assets
before expense
waivers/reimbursements 3.14% (e) 1.56% 1.62% 2.35% 2.25% (a)
Ratio of net investment
income (loss) to
average net assets (0.55%) 0.95% 0.06% (0.15%) 0.40% (a)
Portfolio turnover 47.62% 72.23% 79.96% 104.30% 26.37% (b)
</TABLE>
- -------
(a) Annualized.
(b) Not annualized.
(c) Total return would have been lower had certain expenses not been waived or
reimbursed.
(d) Total return includes the effects of entry/exit fees received by the Fund;
however, net asset value per share at the beginning and end of each period
used for calculating total return excludes such entry/exit fees.
(e) Expenses include tax expense for the year ended December 31, 1998. Without
the tax expense, the ratio of expenses to average net assets and the ratio
of expenses to average net assets before expense waivers would have been
2.98% and 3.03%, respectively.
# Rounds to less than $0.01.
* Commencement of operations.
See accompanying Notes to Financial Statements.
44
<PAGE>
TIFF U.S. Equity Fund -- Financial Highlights
<TABLE>
<CAPTION>
Year Year Year Year Period from
Ended Ended Ended Ended 5/31/94 *
12/31/98 12/31/97 12/31/96 12/31/95 to 12/31/94
-------- -------- -------- -------- -----------
<S> <C> <C> <C> <C> <C>
For a share outstanding
throughout 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 0.17 0.50 0.20 0.20 0.15
Net realized and
unrealized gain on
investments, financial
futures and options
contracts, short sales,
forward currency
contracts and foreign
currency-related
transactions 1.59 3.94 2.52 3.37 0.19
-------- -------- -------- -------- -------
Total from investment
operations 1.76 4.44 2.72 3.57 0.34
-------- -------- -------- -------- -------
Less distributions from:
Net investment income (0.07) (0.40) (0.17) (0.22) (0.15)
Amounts in excess of net
investment income (0.07) (0.11) (0.10) -- 0.00#
Net realized gains (1.66) (2.01) (1.07) (1.01) (0.01)
Amounts in excess of net
realized gains -- -- -- -- (0.16)
-------- -------- -------- -------- -------
Total distributions (1.80) (2.52) (1.34) (1.23) (0.32)
-------- -------- -------- -------- -------
Net asset value, end of
period $ 15.62 $ 15.66 $ 13.74 $ 12.36 $ 10.02
======== ======== ======== ======== =======
Total return (d) 11.85% 33.01% 21.91% 36.02% 3.49%(b)(c)
Ratios/supplemental data
Net assets, end of
period (000s) $312,587 $255,714 $176,797 $109,901 $58,173
Ratio of expenses to
average net assets 0.72% 0.70% 0.82% 0.93% 0.85%(a)
Ratio of expenses to
average net assets
before expense waivers 0.72% 0.70% 0.82% 0.93% 1.06%(a)
Ratio of net investment
income to average net
assets 0.99% 1.34% 1.41% 1.67% 2.52%(a)
Portfolio turnover 98.30% 108.52% 105.18% 109.89% 44.59%(b)
</TABLE>
- -------
(a) Annualized.
(b) Not annualized.
(c) Total return would have been lower had certain expenses not been waived or
reimbursed.
(d) Total return includes the effects of entry/exit fees received by the Fund;
however, net asset value per share at the beginning and end of each period
used for calculating total return excludes such entry/exit fees.
# Rounds to less than $0.01.
* Commencement of operations.
See accompanying Notes to Financial Statements.
45
<PAGE>
TIFF Bond Fund -- Financial Highlights
<TABLE>
<CAPTION>
Year Year Year Year Period from
Ended Ended Ended Ended 5/31/94 *
12/31/98 12/31/97 12/31/96 12/31/95 to 12/31/94
-------- -------- -------- -------- -----------
<S> <C> <C> <C> <C> <C>
For a share outstanding
throughout 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 0.60 0.64 0.67 0.67 0.36
Net realized and
unrealized gain (loss)
on investments,
financial futures and
options contracts,
short-sales, forward
currency contracts and
foreign currency-
related transactions 0.13 0.27 (0.27) 1.01 (0.32)
-------- -------- -------- ------- -------
Total from investment
operations 0.73 0.91 0.40 1.68 0.04
-------- -------- -------- ------- -------
Less distributions from:
Net investment income (0.60) (0.64) (0.67) (0.66) (0.36)
Amounts in excess of net
investment income (0.02) (0.01) (0.00)# (0.01) (0.00)#
Net realized gains (0.06) (0.08) -- (0.36) --
-------- -------- -------- ------- -------
Total distributions (0.68) (0.73) (0.67) (1.03) (0.36)
-------- -------- -------- ------- -------
Net asset value, end of
period $ 10.29 $ 10.24 $ 10.06 $ 10.33 $ 9.68
======== ======== ======== ======= =======
Total return (d) 7.31% 9.35% 3.75% 18.07% 0.46%(b)(c)
Ratios/supplemental data
Net assets, end of
period (000s) $197,652 $173,352 $127,491 $91,072 $79,671
Ratio of expenses to
average net assets 0.46% 0.56% 0.58% 0.96% 0.62%(a)
Ratio of expenses to
average net assets
before expense waivers 0.46% 0.56% 0.58% 0.96% 0.94%(a)
Ratio of net investment
income to average net
assets 5.82% 6.41% 6.64% 6.34% 6.37%(a)
Portfolio turnover 329.49% 398.16% 332.21% 406.24% 162.06%(b)
</TABLE>
- -------
(a) Annualized.
(b) Not annualized.
(c) Total return would have been lower had certain expenses not been waived or
reimbursed.
(d) Total return includes the effects of entry/exit fees received by the Fund;
however, net asset value per share at the beginning and end of each period
used for calculating total return excludes such entry/exit fees.
# Rounds to less than $0.01.
* Commencement of operations.
See accompanying Notes to Financial Statements.
46
<PAGE>
TIFF Short-Term Fund -- Financial Highlights
<TABLE>
<CAPTION>
Year Year Year Year Period from
Ended Ended Ended Ended 5/31/94 *
12/31/98 12/31/97 12/31/96 12/31/95 to 12/31/94
-------- -------- -------- -------- -----------
<S> <C> <C> <C> <C> <C>
For a share outstanding
throughout each period
Net asset value,
beginning of period $ 9.95 $ 9.99 $ 10.01 $ 10.00 $ 10.00
------- ------- ------- ------- -------
Income from investment
operations:
Net investment income 0.54 0.54 0.54 0.58 0.28
Net realized and
unrealized gain (loss)
on investments,
financial futures and
options contracts,
short sales, forward
currency contracts and
foreign currency-
related transactions 0.01 (0.02) (0.02) 0.05 0.02
------- ------- ------- ------- -------
Total from investment
operations 0.55 0.52 0.52 0.63 0.30
------- ------- ------- ------- -------
Less distributions from:
Net investment income (0.53) (0.55) (0.54) (0.58) (0.28)
Amounts in excess of net
investment income -- (0.01) (0.00)# (0.00)# (0.00)#
Net realized gains -- -- -- (0.04) (0.01)
Amounts in excess of net
realized gains -- -- -- (0.00)# (0.01)
------- ------- ------- ------- -------
Total distributions (0.53) (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 return (c) 5.59% 5.30% 5.28% 6.43% 3.10%(b)
Ratios/supplemental data
Net assets, end of
period (000s) $74,907 $34,431 $63,470 $96,580 $34,283
Ratio of expenses to
average net assets 0.35% 0.47% 0.36% 0.42% 0.40%(a)
Ratio of expenses to
average net assets
before expense waivers 0.53% 0.56% 0.47% 0.54% 1.72%(a)
Ratio of net investment
income to average net
assets 5.41% 5.53% 5.35% 5.67% 4.98%(a)
</TABLE>
- -------
(a) Annualized.
(b) Not annualized.
(c) Total return would have been lower had certain expenses not been waived or
reimbursed.
# Rounds to less than $0.01.
* Commencement of operations.
See accompanying Notes to Financial Statements.
47
<PAGE>
Notes to Financial Statements December 31, 1998
1.Organization
TIFF Investment Program, Inc. ("TIP") was organized as a Maryland corporation
on December 23, 1993 and is registered under the Investment Company Act of
1940, as amended, as an open-end, management investment company. TIP currently
has six active Funds: TIFF Multi-Asset Fund ("Multi-Asset"), TIFF
International Equity Fund ("International Equity"), TIFF Emerging Markets Fund
("Emerging Markets"), TIFF U.S. Equity Fund ("U.S. Equity"), TIFF Bond Fund
("Bond"), and TIFF Short-Term Fund ("Short-Term").
Investment Objectives
<TABLE>
- ---------------------------------------------------------------------------------------------------------
<CAPTION>
Fund Investment Objective
- ---------------------------------------------------------------------------------------------------------
<S> <C>
Provide a growing stream of current income and appreciation of principal that at
Multi-Asset 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.
Provide a high rate of current income, subject to restrictions designed to
Short-Term control share price volatility.
</TABLE>
2.Summary of Significant Accounting Policies
The preparation of financial statements in conformity with generally accepted
accounting principles requires management to make estimates and assumptions
that affect the reported amounts and disclosures in the financial statements.
Actual results could differ from those estimates.
Valuation of Investments
Securities listed on a securities exchange for which market quotations are
readily available are valued at their last quoted sales price on the principal
exchange on which they are traded on valuation date or, if there is no such
reported sale on the valuation date, at the most recently quoted bid price.
Unlisted securities or securities for which over-the-counter market quotations
are readily available are valued at the latest bid price. Time deposits,
repurchase agreements and reverse repurchase agreements are generally valued
at their cost plus accrued interest. Short-term debt securities having a
remaining maturity of 60 days or less are valued at amortized cost, which
approximates fair value, or by amortizing their value on the 61st day prior to
maturity if their term to maturity from the date of purchase was greater than
60 days. Options and future contracts are valued at the last quoted bid price,
except that open future sales contracts are valued using the closing
settlement price or, in the absence of such price, the most recently quoted
asked price. Forward foreign currency exchange contracts are valued at the
current cost of covering or offsetting the contracts.
Certain Funds invest in limited partnerships formed for the purpose of earning
returns from alternative investment strategies. Investments in limited
partnerships held by the Funds are presented, under procedures established by
TIP's Board of Directors, at estimated values, which generally represent the
respective Fund's proportionate share of the net assets of the investee
partnerships as reported by them. These values are not necessarily indicative
of the value the Funds would receive in a current sale. The Fund's
proportionate share of the change in values of the investee partnerships is
recorded as change in unrealized appreciation (depreciation) on investments in
its statement of operations. Investments in other open-ended funds or trusts
are valued at their closing net asset value per share on valuation date which
is their redeemable value.
Securities for which market quotations are not readily available are valued at
their fair value as determined in good faith under consistently applied
procedures established by TIP's Board of Directors. Such procedures use
fundamental valuation methods which include, but are not limited to, the
analysis of: the effect of any restrictions on the resale of the security,
industry analysis and trends, significant changes in the issuer's financial
position, and any other event which could have a significant impact on the
value of the security. Determination of fair value involves subjective
judgment, as the actual market value of a particular security can be
established only by negotiations between the parties in a sales transaction.
At December 31, 1998, the aggregate amount of securities fair valued were as
follows:
<TABLE>
--------------------------------------------------------------------
<CAPTION>
Fund Amount % of Net Assets
--------------------------------------------------------------------
<S> <C> <C>
Multi-Asset $64,921,594 22.25%
International Equity 16,000,122 6.15
Emerging Markets 11,357,435 19.53
U.S. Equity 7,893,500 2.53
Bond 562,500 0.28
</TABLE>
48
<PAGE>
Notes to Financial Statements December 31, 1998
Investment Transactions and Investment Income
Securities transactions are recorded on the trade date (the date on which the
buy or sell order is executed). Interest income and expenses are recorded on
an accrual basis. The Funds accrete discount or amortize premium using the
yield-to-maturity method on a daily basis. Dividend income is recorded on the
ex-dividend date, except certain dividends from foreign securities that are
recorded as soon after the ex-dividend date as the Funds, using reasonable
diligence, become aware of such dividends. The Funds use the specific
identification method for determining realized gain or loss on sales of
securities and foreign currency transactions.
Income Taxes
There is no provision for Federal income or excise tax since each Fund has
elected to be taxed as a regulated investment company ("RIC") and intends to
comply with the requirements of Subchapter M of the Internal Revenue Code
applicable to RICs and to distribute all of its taxable income. Net realized
losses attributable to security transactions and foreign currency transactions
after October 31 are treated as arising on the first day of a Fund's next
fiscal year if so elected by the Fund. The Funds may be subject to foreign
taxes on income, gains on investments or currency repatriation. The Funds
accrue such taxes, as applicable, as a reduction from the related income, as
and when such income is earned.
Expenses
Expenses directly attributable to a Fund are charged to that Fund's
operations; expenses that are applicable to all Funds are allocated among them
based on their relative average daily net assets. The costs incurred by TIP in
connection with the organization and initial registration of shares are being
amortized on a straight-line basis over a sixty-month period.
Dividends to Shareholders
It is the policy of all Funds to declare dividends according to the following
schedule:
<TABLE>
--------------------------------------------------------
<CAPTION>
Dividends from Net Capital Gains
Fund Investment Income Distributions
--------------------------------------------------------
<S> <C> <C>
Multi-Asset Semi-annually Annually
International Equity Semi-annually Annually
Emerging Markets Annually Annually
U.S. Equity Quarterly Annually
Bond Daily Annually
Short-Term Daily Annually
</TABLE>
Dividends from net short-term capital gains and net long-term capital gains of
each Fund, if any, are normally declared and paid annually, but each Fund may
make distributions on a more frequent basis to comply with the distribution
requirements of the Internal Revenue Code. To the extent that a net realized
capital gain can be reduced by a capital loss carryover, such gain will not be
distributed. Dividends and distributions are recorded on the ex-dividend date.
Dividends and distributions from net investment income and net realized
capital gains are determined in accordance with federal income tax
regulations, which may differ from generally accepted accounting principles.
These "book/tax" differences are considered either temporary or permanent in
nature. To the extent these differences are permanent in nature, such amounts
are reclassified within the capital accounts based on their federal tax-basis
treatment; temporary differences do not require reclassification. Dividends
and distributions that exceed net investment income or net realized capital
gains for financial reporting purposes, but not for tax purposes, are reported
as dividends in excess of net investment income or distributions in excess of
net realized gain on investments. To the extent they exceed net investment
income or net realized gains for tax purposes, they are reported as
distributions of capital stock.
During the year ended December 31, 1998, the following Funds reclassified
amounts arising from permanent book/tax differences:
<TABLE>
--------------------------------------------------------------------------
<CAPTION>
Undistributed (Distribution Accumlulated
in Excess of) Net Net Realized
Fund Investment Income Gain/(Loss) Capital Stock
--------------------------------------------------------------------------
<S> <C> <C> <C>
Multi-Asset $(234,558) $ 234,263 $ 295
International
Equity 615,227 (615,227) --
Emerging Markets (464,894) 464,894 --
U.S. Equity 3,993 (193) (3,800)
Bond 13,058 (11,021) (2,037)
Short-Term 14,382 (13,871) (511)
</TABLE>
49
<PAGE>
Notes to Financial Statements December 31, 1998
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 of the Notes to Financial Statements details each Fund's
outstanding forward currency contracts at December 31, 1998.
Financial Futures Contracts
Certain Funds are engaged in trading financial futures contracts. The Funds
are exposed to market risk as a result of changes in the value of the
underlying financial instruments. Investments in financial futures require a
fund to "mark to market" on a daily basis, which reflects the change in the
market value of the contract at the close of each day's trading. Accordingly,
variation margin payments are made to or received from the broker in the
amount of daily unrealized gains or losses. When the contracts are closed, the
Fund recognizes a realized gain or loss. These investments require initial
margin deposits which consist of cash or cash equivalents, equal to
approximately 5%-10% of the contract amount.
Each Fund may use futures contracts to manage its exposure to the stock and
bond markets and to fluctuations in currency values. Futures contracts tend to
increase or decrease the Funds' exposure to the underlying instrument or hedge
other Fund investments. Futures contracts involve, to varying degrees, risk of
loss in excess of the variation margin included in the Statement of Assets and
Liabilities. Losses may arise from the changes in the value of the underlying
instrument, if there is an illiquid secondary market for the contracts, or if
counterparties do not perform under the contract terms. Futures contracts are
valued at the settlement price established each day by the board of trade or
exchange on which they are traded.
At December 31, 1998, the Funds held assets with a broker as initial margin
for financial futures as follows:
<TABLE>
---------------------------
<CAPTION>
Segregated
Fund Assets
---------------------------
<S> <C>
Multi-Asset $3,990,607
International Equity 2,958,689
U.S. Equity 1,680,048
Bond 357,470
Short-Term 39,285
</TABLE>
50
<PAGE>
Notes to Financial Statements December 31, 1998
Appendix C of the Notes to Financial Statements details each Fund's open
futures contracts at December 31, 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>
- ----------------------------------------------------------------------------
<CAPTION>
Multi- International Emerging U.S. Short-
Assets Asset Equity Markets Equity Bond Term
- ----------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
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>
51
<PAGE>
Notes to Financial Statements December 31, 1998
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 the assets under management with a
single rate or on a descending scale.
Appendix A of the Notes to Financial Statements identifies Money Managers who
provide services to the Funds and the minimum, maximum and effective fee rates
applicable during the year ended December 31, 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.
("Investors Capital", formerly AMT Capital Services), two employees of which
serve as officers of TIP, earn a fee for providing fund administration
services to TIP according to the following schedule: 0.07% of the first $300
million of the average daily net assets of TIP, 0.05% of the next $2.7
billion, 0.04% of the next $2.0 billion, and 0.03% of the average daily net
assets over $5.0 billion. In addition, TIP has agreed to pay Investors Capital
an incentive fee not to exceed 0.02% of average daily net assets for reducing
the expense ratio of one or more Funds of TIP below certain levels specified
for each Fund. On May 29, 1998, Investors Capital Services, Inc. became a
wholly-owned subsidiary of Investors Financial Services Co., Inc. Investors
Bank and Trust Company ("IBT"), which is also a wholly-owned subsidiary of
Investors Financial Services Co., serves as the Funds' custodian and
accounting agent and transfer 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 for such services paid to IBT by the Funds are
reflected as custodian and accounting fees and shareholder recordkeeping fees
in the Statement of Operations.
During the year ended December 31, 1998, International Equity Fund received
reimbursements of $70,517 from the Administrator, Emerging Markets Fund
received reimbursements of $38,922 from the Administrator and the Short-Term
Fund received fee waivers and reimbursements of $18,055, $76,335, $7,221 and
$6,250 from the Fund's Investment Advisor, Money Manager, Administrator and
Custodian, respectively.
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 December 31,
1998, were as follows:
<TABLE>
----------------------------------------------------------------------------------
<CAPTION>
Fund Purchases Sales
----------------------------------------------------------------------------------
<S> <C> <C>
Multi-Asset $626,387,278 $733,760,445
International Equity 96,217,681 74,962,246
Emerging Markets 38,871,304 31,876,674
U.S. Equity 261,465,789 253,831,558
Bond 639,618,185 603,489,590
Short-Term 147,641,320 177,563,778
</TABLE>
For Federal income tax purposes, the cost of securities owned at December 31,
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 December 31, 1998 for each Fund are as follows:
<TABLE>
-----------------------------------------------------------------------------------
<CAPTION>
Net Unrealized Appreciation/
Fund Gross Appreciation Gross Depreciation (Depreciation)
-----------------------------------------------------------------------------------
<S> <C> <C> <C>
Multi-Asset $18,635,790 ($25,325,190) ($6,689,400)
International
Equity 51,788,141 (41,447,852) 10,340,289
Emerging
Markets 3,424,030 (28,509,898) (25,085,868)
U.S. Equity 50,354,516 (14,696,821) 35,657,695
Bond 4,556,171 (1,039,411) 3,516,760
Short-Term 56,828 (71,373) (14,545)
</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.
52
<PAGE>
Notes to Financial Statements December 31, 1998
6.Capital Share Transactions
As of December 31, 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 Financial Statements.
7.Securities Lending
The Funds may lend portfolio securities to qualified borrowers. The terms of
the lending agreements require that loans are secured at all times by cash or
U.S. government securities in an amount greater than 102% of the market value
of the securities loaned (105% in case of foreign securities), plus accrued
interest and dividends, determined on a daily basis and adjusted accordingly.
The Funds will regain record ownership of loaned securities to exercise
certain beneficial rights; however, the Funds may bear the risk of delay in
recovery of, or even loss of rights in, the securities loaned should the
borrower fail financially. The Funds' custodian acts as the lending agent. If
cash collateral is received, the lending agent invests the amounts received in
short-term securities and cash equivalents on behalf of the Fund. At December
31, 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 December 31, 1998, the value of the securities loaned and the amount of
cash collateral received with respect to such loans were as follows:
<TABLE>
-----------------------------------------------------------------------------
<CAPTION>
Value of Loaned Cash
Fund Securities Collateral Received
-----------------------------------------------------------------------------
<S> <C> <C>
International Equity $5,412,709 $5,716,676
Emerging Markets 1,783,009 1,867,115
</TABLE>
8.Delayed Delivery Transactions
The Funds may purchase or sell securities on a when-issued or forward
commitment basis. Payment and delivery may take place a month or more after
the date of the transaction. The price of the underlying securities and the
date when the securities will be delivered and paid for are fixed at the time
the transaction is negotiated. The Funds identify in their records securities
as segregated with a value at least equal to the amount of the purchase
commitment.
Bond Fund enters into "TBA" (to be announced) purchase commitments to purchase
mortgage-backed securities for a fixed unit price at a future date beyond
customary settlement time. Although the unit price has been established, the
principal value has not been finalized. However, the amount of the commitment
will not fluctuate more than 2.0% from the principal amount. TBA purchase
commitments may be considered securities in themselves, and involve a risk of
loss if the value of the security to be purchased declines prior to the
settlement date, which risk is in addition to the risk of decline in the value
of the Fund's other assets. Unsettled TBA purchase commitments are valued at
the current market value of the underlying securities, generally according to
the procedures described under "Valuation of Investments" above. Risks may
arise upon entering into these contracts from the potential inability of
counterparties to meet the terms of their contracts.
Although the Fund will generally enter into TBA purchase commitments with the
intention of acquiring securities for its portfolio, the Fund may dispose of a
commitment prior to settlement if the Fund's Money Manager deems it
appropriate to do so.
Bond Fund enters into TBA sale commitments to hedge its portfolio or to sell
mortgage-backed securities it owns under delayed delivery arrangements.
Proceeds of TBA sale commitments are not received until the contractual
settlement date. During the time a TBA sale commitment is outstanding,
equivalent deliverable securities, or an offsetting TBA purchase commitment
(deliverable on or before the sale commitment date), are held as "cover" for
the transaction.
Unsettled TBA sale commitments are valued at the current market value of the
underlying securities, generally according to the procedures described under
"Valuation of Investments" above. The contract is marked to market daily and
the change in market value is recorded by the Fund as an unrealized gain or
loss. If the TBA sale commitment is closed through the acquisition of an
offsetting purchase commitment, the Fund realizes a gain or loss on the
commitment without regard to any unrealized gain or loss on the underlying
security. If the Fund delivers securities under the commitment, the Fund
realizes a gain or loss from the sale of the securities upon the unit price
established at the date the commitment was entered into.
9.Concentration of Risks
The Bond, Short-Term and Multi-Asset Funds invest in fixed income securities
issued by banks and other financial companies the market values of which may
change in response to interest rate changes. Although, the Bond, Short-Term
and Multi-Asset Funds generally maintain diversified portfolios, the ability
of the issuers of the respective Fund's portfolio securities to meet their
obligations may be affected by changing business and economic conditions in a
specific industry, state or region.
53
<PAGE>
Notes to Financial Statements December 31, 1998
The International Equity and Emerging Markets Funds invest in securities of
foreign issuers in various countries. These investments may involve certain
considerations and risks not typically associated with investments in United
States, as a result of, among other factors, the possibility of future
political and economic developments and the level of governmental supervision
and regulation of securities markets in the respective countries. While the
Funds' investment in emerging markets debt is limited, the yields of these
obligations reflect perceived credit risk.
10.Principal Members
The schedule below shows the number of Members each owning 10% or more of a
Fund and the total percentage of the Fund held by such Members.
<TABLE>
----------------------------------------------------------------------
<CAPTION>
Fund Number % of Fund Held
----------------------------------------------------------------------
<S> <C> <C>
Multi-Asset 2 23
International Equity Fund 2 42
Emerging Markets Fund 3 50
U.S. Equity Fund 2 23
Bond Fund 1 14
Short-Term Fund 2 53
</TABLE>
11.Subsequent Event
Effective January 1, 1999, eleven member countries of the European Union
("EU") introduced the European Monetary Unit ("Euro") as legal tender in their
respective countries. Accordingly, the denomination and value of government
securities and certain other fixed income and equity securities of issuers in
the member countries of the EU were converted from their legacy currency, at
the official exchange rates, to Euro. The eleven member countries are:
Austria, Belgium, Finland, France, Germany, Ireland, Italy, Luxembourg, The
Netherlands, Portugal, and Spain.
As a result of the conversion, the following assets and liabilities at
December 31, 1998 were subsequently redenominated in Euro. No gains or losses
were recognized as a result of the conversion.
<TABLE>
----------------------------------------------------------------------
<CAPTION>
Fund Assets Liabilities
----------------------------------------------------------------------
<S> <C> <C>
Multi-Asset $10,546,986 --
International Equity 59,279,686 --
Emerging Markets 285,606 --
</TABLE>
54
<PAGE>
Notes to Financial Statements December 31, 1998
Appendix A
Money Manager Fee as Percent of Assets Managed
for the year ended December 31, 1998
<TABLE>
<CAPTION>
Effective
Minimum Maximum Fee Rate
<S> <C> <C> <C>
TIFF Multi-Asset Fund
Bee & Associates, Inc.............................. 0.15 2.00 0.19
Grantham, Mayo, Van Otterloo & Co.................. 0.30 1.00 0.00(a)
Harding, Loevner Management, L.P................... 0.10 1.50 0.10
Seix Investment Advisors, Inc...................... 0.10 0.80 0.10
Standard Pacific Capital LLC....................... 0.15 2.00 0.24
Wellington Management Company LLP.................. 0.35* 0.45 0.45
TIFF International Equity Fund
Bee & Associates, Inc.............................. 0.15 2.00 0.71
Delaware International Advisers, Ltd............... 0.30* 0.50 0.50
Harding, Loevner Management, L.P................... 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 2.04(c)
Lazard Freres Asset Management..................... 0.50** 0.50** 0.50**
TIFF U.S. Equity Fund
Aronson + Partners................................. 0.10 0.80 0.10@
Martingale Asset Management, L.P................... 0.05* 0.10 0.09
Palo Alto Investors................................ 0.10 2.00 0.99
Shapiro Capital Management......................... 0.50 0.95 0.50
Westport Asset Management, Inc..................... 0.15 2.00 1.26
TIFF Bond Fund
Atlantic Asset Management Partners, L.L.C.......... 0.10 0.60 0.10
Seix Investment Advisors, Inc...................... 0.10 0.80 0.10
Smith Breeden Associates, Inc...................... 0.10 0.85 0.10
TIFF Short-Term Fund
Fischer Francis Trees & Watts, Inc................. 0.15* 0.20 0.07(b)
</TABLE>
- -------
* Money Manager receives a fee that does not include performance component.
** Money Manager receives a straight asset-based fee regardless of the amount
of assets managed for TIP (i.e., there are neither "breakpoints" in the fee
agreement nor a performance component).
@ Annualized.
(a) The Money Manager received no fees directly from the Multi-Asset Fund, as
the assets managed represented investments in affiliated mutual funds.
(b) The Money Manager has agreed to voluntarily waive a portion of its Money
Manager Fee.
(c) Rate includes a 1997 performance fee adjustment paid in 1998 in accordance
with the Money Manager Agreement.
55
<PAGE>
Notes to Financial Statements December 31, 1998
Appendix B
Open Forward Currency Contracts
<TABLE>
<CAPTION>
U.S. Dollar Foreign Currency Unrealized Appreciation
Contracts Description Receivable (Payable) Receivable (Payable) (Depreciation)
<C> <S> <C> <C> <C>
Multi-Asset Fund
Buy Contracts--Forwards
10,448,600 French Franc 3/17/99 ($1,899,746) $ 1,876,828 ($22,918)
Sell Contract--Forwards
10,448,600 French Franc 3/17/99 $ 1,840,353 ($1,876,828) ($36,475)
----------
Net unrealized
depreciation ($59,393)
==========
International Equity
Fund
Sell Contracts--
Forwards
1,749,349 British Pound 1/29/99 2,955,000 (2,908,459) 46,541
553,000,000 Japanese Yen 8/5/99 4,000,000 (5,048,563) (1,048,563)
553,200,000 Japanese Yen 8/11/99 4,000,000 (4,963,493) (963,493)
Sell Contracts--Spot
2,695 British Pound 1/5/99 4,507 (4,484) 23
----------
Net unrealized
depreciation (1,965,492)
==========
Emerging Markets Fund
Sell Contracts -- Spots
298,148 Hong Kong Dollar 1/4/99 38,479 (38,486) (7)
282,626 New Mexican Peso 1/4/99 28,419 (28,592) (173)
----------
Net unrealized
depreciation (180)
==========
</TABLE>
56
<PAGE>
Notes to Financial Statements December 31, 1998
Appendix C
Open Futures Contracts as of December 31, 1998
<TABLE>
<CAPTION>
Unrealized
Number of Cost/ Value at Appreciation
Contracts (Proceeds) December 31, 1998 (Depreciation)
<C> <S> <C> <C> <C>
Multi-Asset Fund
Long Futures Contracts
134 March 1999 S&P 500 Index $40,022,638 $41,724,250 $1,701,612
37 March 1999 German Marks 2,770,375 2,783,787 13,412
10 March 1999 DAX Index 2,858,342 3,037,064 178,722
138 March 1999 NIKKEI Index 8,996,009 8,399,335 (596,674)
79 March 1999 Japanese Yen 8,354,250 8,772,950 418,700
16 March 1999 US Treasury Bonds 2,043,750 2,044,500 750
----------
Total $1,716,522
==========
International Equity Fund
Long Futures Contracts
150 March 1999 NIKKEI Index 9,778,271 9,129,712 $ (648,559)
110 March 1999 Japanese Yen 11,632,500 12,215,500 583,000
95 March 1999 German Marks 7,117,225 7,147,563 30,338
25 March 1999 DAX Index 7,145,856 7,592,659 446,803
----------
Total $ 411,582
==========
U.S. Equity Fund
Long Futures Contracts
97 March 1999 S&P 500 Index 30,120,850 30,203,375 $ 82,525
==========
Bond Fund
Long Futures Contracts
75 March 1999 5 Year U.S Treasury 8,493,657 8,500,456 $ 6,799
Notes
56 March 1999 U.S. Treasury Bonds 7,183,063 7,155,751 (27,312)
5 March 1999 Eurodollar 1,178,313 1,188,062 9,749
5 June 1999 Eurodollar 1,177,875 1,188,625 10,750
4 September 1999 Eurodollar 942,000 951,000 9,000
4 December 1999 Eurodollar 940,900 947,300 6,400
2 March 2000 Eurodollar 470,800 475,075 4,275
----------
$ 19,661
----------
Short Futures Contracts
160 March 1999 10 Year U.S. (19,250,433) (19,065,000) $ 185,433
Treasury Notes
----------
Total $ 205,094
==========
Short-Term Fund
Long Futures Contracts
6 January 1999 Eurodollar 1,426,102 1,424,925 $ (1,177)
37 June 1999 Eurodollar 8,786,435 8,795,825 9,390
----------
Total $ 8,213
==========
</TABLE>
57
<PAGE>
Notes to Financial Statements December 31, 1998
Appendix D
Capital Share Transactions
<TABLE>
<CAPTION>
Year Ended 12/31/98 Year Ended 12/31/97
Multi-Asset Fund Shares Amount Shares Amount
<S> <C> <C> <C> <C>
Shares Sold 2,160,693 $ 25,393,671 16,711,363 $211,966,687
Shares Reinvested 382,928 4,486,666 2,238,996 26,221,425
Exit/Entrance Fee -- 858,436 -- 1,224,865
----------- ------------ ---------- ------------
Subtotal 2,543,621 30,738,773 18,950,359 239,412,977
Shares Redeemed (9,792,392) (114,963,361) (4,198,208) (53,888,979)
----------- ------------ ---------- ------------
Net Increase (Decrease) (7,248,771) $(84,224,588) 14,752,151 $185,523,998
----------- ------------ ---------- ------------
<CAPTION>
Year Ended 12/31/98 Year Ended 12/31/97
International Equity Fund Shares Amount Shares Amount
<S> <C> <C> <C> <C>
Shares Sold 2,884,321 $ 35,637,540 2,546,568 $ 31,880,666
Shares Reinvested 1,758,908 19,730,254 788,565 9,438,744
Exit/Entrance Fees -- 272,956 -- 227,931
----------- ------------ ---------- ------------
Subtotal 4,643,229 55,640,750 3,335,133 41,547,341
Shares Redeemed (1,836,634) (21,010,727) (862,899) (10,930,008)
----------- ------------ ---------- ------------
Net Increase 2,806,595 $ 34,630,023 2,472,234 $ 30,617,333
----------- ------------ ---------- ------------
<CAPTION>
Year Ended 12/31/98 Year Ended 12/31/97
Emerging Markets Fund Shares Amount Shares Amount
<S> <C> <C> <C> <C>
Shares Sold 979,610 $ 6,383,487 1,705,875 $ 15,529,455
Shares Reinvested 333,525 1,450,837 482,627 3,919,420
Exit/Entrance Fees -- 75,507 -- 367,820
----------- ------------ ---------- ------------
Subtotal 1,313,135 7,909,831 2,188,502 19,816,695
Shares Redeemed (453,357) (2,607,635) (2,226,500) (21,228,824)
----------- ------------ ---------- ------------
Net Increase/(Decrease) 859,778 $ 5,302,196 (37,998) $ (1,412,129)
----------- ------------ ---------- ------------
<CAPTION>
Year Ended 12/31/98 Year Ended 12/31/97
U.S. Equity Fund Shares Amount Shares Amount
<S> <C> <C> <C> <C>
Shares Sold 4,546,946 $ 75,358,489 2,063,678 $ 32,136,175
Shares Reinvested 1,842,791 28,102,991 1,755,692 27,538,988
Exit/Entrance Fees -- 261,668 -- 86,917
----------- ------------ ---------- ------------
Subtotal 6,389,737 103,723,148 3,819,370 59,762,080
Shares Redeemed ( 2,705,487) (43,995,153) (360,988) (5,646,464)
----------- ------------ ---------- ------------
Net Increase 3,684,250 $ 59,727,995 3,458,382 $ 54,115,616
----------- ------------ ---------- ------------
<CAPTION>
Year Ended 12/31/98 Year Ended 12/31/97
Bond Fund Shares Amount Shares Amount
<S> <C> <C> <C> <C>
Shares Sold 5,003,060 $ 51,347,987 5,708,623 $ 57,808,297
Shares Reinvested 821,415 8,450,101 697,803 6,985,148
----------- ------------ ---------- ------------
Subtotal 5,824,475 59,798,088 6,406,426 64,793,445
Shares Redeemed (3,535,452) (36,408,881) (2,162,530) (21,721,874)
----------- ------------ ---------- ------------
Net Increase 2,289,023 $ 23,389,207 4,243,896 $ 43,071,571
----------- ------------ ---------- ------------
<CAPTION>
Year Ended 12/31/98 Year Ended 12/31/97
Short-Term Fund Shares Amount Shares Amount
<S> <C> <C> <C> <C>
Shares Sold 8,764,788 $ 87,526,259 4,512,506 $ 44,996,755
Shares Reinvested 281,506 2,807,748 162,340 1,626,271
----------- ------------ ---------- ------------
Subtotal 9,046,294 90,334,007 4,674,846 46,623,026
Shares Redeemed (4,992,503) (49,906,485) (7,569,665) (75,510,887)
----------- ------------ ---------- ------------
Net Increase/(Decrease) 4,053,791 $ 40,427,522 (2,894,819) $(28,887,861)
----------- ------------ ---------- ------------
</TABLE>
58
<PAGE>
Notes to Financial Statements December 31, 1998
Appendix E
Summary of Transactions with Affiliated Companies
During the year ended December 31, 1998
<TABLE>
<CAPTION>
Change in
Unrealized
Realized Dividend Value at Appreciation/
Affiliate Purchase Cost Sales Proceeds Gain/(Loss) Income 12/31/98 (Depreciation)
<S> <C> <C> <C> <C> <C> <C>
Multi-
Asset
Grantham,
Mayo,
and Van
Otterloo
And Co. $594,721 $33,794,354 $(5,164,316) $594,721 $10,170,559 $344,366
</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.
59
<PAGE>
Report of Independent Accountants
February 24, 1999
To the Board of Directors and Shareholders of TIFF Investment Program, Inc.
In our opinion, the accompanying statements of assets and liabilities,
including the schedules of investments, and the related statements of
operations and of changes in net assets and the financial highlights present
fairly, in all material respects, the financial position of TIFF Multi-Asset
Fund, TIFF International Equity Fund, TIFF Emerging Markets Fund, TIFF U.S.
Equity Fund, TIFF Bond Fund and TIFF Short-Term Fund (constituting the TIFF
Investment Program, Inc., hereafter referred to as the "Funds"), at December
31, 1998, and the results of each of their operations, the changes in each of
their net assets, and the financial highlights for each of the periods
indicated, in conformity with generally accepted accounting principles. These
financial statements and financial highlights (hereafter referred to as
"financial statements") are the responsibility of the Funds' management; our
responsibility is to express an opinion on these financial statements based on
our audits. We conducted our audits of these financial statements in
accordance with generally accepted auditing standards which require that we
plan and perform the audit to obtain reasonable assurance about whether the
financial statements are free of material misstatement. An audit includes
examining, on a test basis, evidence supporting the amounts and disclosures in
the financial statements, assessing the accounting principles used and
significant estimates made by management, and evaluating the overall financial
statement presentation. We believe that our audits, which included
confirmation of securities owned at December 31, 1998 by correspondence with
the custodian and brokers, provide a reasonable basis for the opinion
expressed above.
PricewaterhouseCoopers LLP
1177 Avenue of the Americas
New York, New York
60
<PAGE>
TIFF Investment Program
ADVISER
Foundation Advisers, Inc.
2405 Ivy Road
Charlottesville, VA 22903
phone(804) 817-8200
fax(804) 817-8231
CUSTODIAN
ACCOUNTING AGENT
TRANSFER AGENT
DIVIDEND DISBURSING AGENT
Investors Bank & Trust Company
Box 1537
Boston, MA 02205
FUND ADMINISTRATOR
Investors Capital Services, Inc.
600 Fifth Avenue, 26th Floor
New York, NY 10020
FUND DISTRIBUTOR
AMT Capital Securities, LLC
399 Park Avenue, 37th Floor
New York, NY 10022
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.
Canyon Capital Management, LP
Daystar Partners
Farallon Capital Management, LLC
Grantham, Mayo, Van Otterloo & Co.
Harding, Loevner Management, LP
Lone Pine Capital, LLC
Seix Investment Advisors, Inc.
Wellington Management Company LLP
TIFF International Equity Fund
Bee & Associates, Inc.
City of London
Delaware International Advisers, Ltd.
Everest Capital Frontier Ltd., LP
Harding, Loevner Management, LP
Marathon Asset Management, Ltd.
Mercury Asset Management International, Ltd.
TIFF Emerging Markets Fund
City of London Investment Management Co. Ltd.
Emerging Markets Management
Everest Capital Ltd.
Lazard Freres Asset Management
TIFF U.S. Equity Fund
Aronson + Partners Gotham Partners, LP
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.
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<NAME> MULTI-ASSET FUND
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<SHARES-COMMON-PRIOR> 32825
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<OVERDISTRIBUTION-NII> (5135)
<ACCUMULATED-NET-GAINS> (3489)
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> (5039)
<NET-ASSETS> 291847
<DIVIDEND-INCOME> 3509
<INTEREST-INCOME> 5275
<OTHER-INCOME> 0
<EXPENSES-NET> 2289
<NET-INVESTMENT-INCOME> 6495
<REALIZED-GAINS-CURRENT> (6071)
<APPREC-INCREASE-CURRENT> 467
<NET-CHANGE-FROM-OPS> 891
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<DISTRIBUTIONS-OF-INCOME> (7136)
<DISTRIBUTIONS-OF-GAINS> 0
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 2161
<NUMBER-OF-SHARES-REDEEMED> 9792
<SHARES-REINVESTED> 383
<NET-CHANGE-IN-ASSETS> (90470)
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</TABLE>
<TABLE> <S> <C>
<ARTICLE> 6
<SERIES>
<NUMBER> 2
<NAME> INTERNATIONAL EQUITY FUND
<MULTIPLIER> 1,000
<S> <C>
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<FISCAL-YEAR-END> DEC-31-1998
<PERIOD-END> DEC-31-1998
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<PAYABLE-FOR-SECURITIES> 95
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 7754
<TOTAL-LIABILITIES> 7849
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 254097
<SHARES-COMMON-STOCK> 23280
<SHARES-COMMON-PRIOR> 20474
<ACCUMULATED-NII-CURRENT> (4292)
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<ACCUMULATED-NET-GAINS> 1446
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> 8780
<NET-ASSETS> 260030
<DIVIDEND-INCOME> 5207
<INTEREST-INCOME> 716
<OTHER-INCOME> 0
<EXPENSES-NET> 2114
<NET-INVESTMENT-INCOME> 3809
<REALIZED-GAINS-CURRENT> 15260
<APPREC-INCREASE-CURRENT> (14008)
<NET-CHANGE-FROM-OPS> 5061
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<DISTRIBUTIONS-OF-INCOME> (6985)
<DISTRIBUTIONS-OF-GAINS> (13749)
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 2884
<NUMBER-OF-SHARES-REDEEMED> 1837
<SHARES-REINVESTED> 1759
<NET-CHANGE-IN-ASSETS> 18958
<ACCUMULATED-NII-PRIOR> 0
<ACCUMULATED-GAINS-PRIOR> 549
<OVERDISTRIB-NII-PRIOR> (1732)
<OVERDIST-NET-GAINS-PRIOR> 0
<GROSS-ADVISORY-FEES> 1147
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> 2184
<AVERAGE-NET-ASSETS> 259932
<PER-SHARE-NAV-BEGIN> 11.77
<PER-SHARE-NII> 0.19
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<EXPENSE-RATIO> 0.81
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</TABLE>
<TABLE> <S> <C>
<ARTICLE> 6
<SERIES>
<NUMBER> 3
<NAME> EMERGING MARKETS FUND
<MULTIPLIER> 1,000
<S> <C>
<PERIOD-TYPE> 12-MOS
<FISCAL-YEAR-END> DEC-31-1998
<PERIOD-END> DEC-31-1998
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<SHARES-COMMON-PRIOR> 10357
<ACCUMULATED-NII-CURRENT> 0
<OVERDISTRIBUTION-NII> (5279)
<ACCUMULATED-NET-GAINS> (16737)
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> (25088)
<NET-ASSETS> 58167
<DIVIDEND-INCOME> 1531
<INTEREST-INCOME> 248
<OTHER-INCOME> 0
<EXPENSES-NET> 2161
<NET-INVESTMENT-INCOME> (382)
<REALIZED-GAINS-CURRENT> (12098)
<APPREC-INCREASE-CURRENT> (16653)
<NET-CHANGE-FROM-OPS> (29133)
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> (1838)
<DISTRIBUTIONS-OF-GAINS> 0
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 980
<NUMBER-OF-SHARES-REDEEMED> 453
<SHARES-REINVESTED> 334
<NET-CHANGE-IN-ASSETS> (25669)
<ACCUMULATED-NII-PRIOR> 0
<ACCUMULATED-GAINS-PRIOR> 0
<OVERDISTRIB-NII-PRIOR> (2594)
<OVERDIST-NET-GAINS-PRIOR> (5104)
<GROSS-ADVISORY-FEES> 1636
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> 2161
<AVERAGE-NET-ASSETS> 69954
<PER-SHARE-NAV-BEGIN> 8.09
<PER-SHARE-NII> (0.01)
<PER-SHARE-GAIN-APPREC> (2.72)
<PER-SHARE-DIVIDEND> (.17)
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<PER-SHARE-NAV-END> 5.19
<EXPENSE-RATIO> 3.09
<AVG-DEBT-OUTSTANDING> 0
<AVG-DEBT-PER-SHARE> 0
</TABLE>
<TABLE> <S> <C>
<ARTICLE> 6
<SERIES>
<NUMBER> 1
<NAME> U.S. EQUITY FUND
<MULTIPLIER> 1,000
<S> <C>
<PERIOD-TYPE> 12-MOS
<FISCAL-YEAR-END> DEC-31-1998
<PERIOD-END> DEC-31-1998
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<SHARES-COMMON-PRIOR> 16329
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<OVERDISTRIBUTION-NII> (1275)
<ACCUMULATED-NET-GAINS> 14819
<OVERDISTRIBUTION-GAINS> 0
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<OTHER-INCOME> 0
<EXPENSES-NET> 2115
<NET-INVESTMENT-INCOME> 2895
<REALIZED-GAINS-CURRENT> 39463
<APPREC-INCREASE-CURRENT> (10953)
<NET-CHANGE-FROM-OPS> 31405
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<DISTRIBUTIONS-OF-GAINS> (31678)
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 4547
<NUMBER-OF-SHARES-REDEEMED> 2705
<SHARES-REINVESTED> 1843
<NET-CHANGE-IN-ASSETS> 56873
<ACCUMULATED-NII-PRIOR> 0
<ACCUMULATED-GAINS-PRIOR> 7034
<OVERDISTRIB-NII-PRIOR> 0
<OVERDIST-NET-GAINS-PRIOR> (1591)
<GROSS-ADVISORY-FEES> 1524
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> 2115
<AVERAGE-NET-ASSETS> 293368
<PER-SHARE-NAV-BEGIN> 17.66
<PER-SHARE-NII> 0.17
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<PER-SHARE-DIVIDEND> 0.14
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<EXPENSE-RATIO> 0.72
<AVG-DEBT-OUTSTANDING> 0
<AVG-DEBT-PER-SHARE> 0
</TABLE>
<TABLE> <S> <C>
<ARTICLE> 6
<SERIES>
<NUMBER> 4
<NAME> BOND FUND
<MULTIPLIER> 1,000
<S> <C>
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<FISCAL-YEAR-END> DEC-31-1998
<PERIOD-END> DEC-31-1998
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<TOTAL-ASSETS> 251074
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<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 16199
<TOTAL-LIABILITIES> 53422
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<PAID-IN-CAPITAL-COMMON> 193666
<SHARES-COMMON-STOCK> 19211
<SHARES-COMMON-PRIOR> 16922
<ACCUMULATED-NII-CURRENT> 0
<OVERDISTRIBUTION-NII> (369)
<ACCUMULATED-NET-GAINS> 633
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> 3722
<NET-ASSETS> 197652
<DIVIDEND-INCOME> 108
<INTEREST-INCOME> 11852
<OTHER-INCOME> 0
<EXPENSES-NET> 884
<NET-INVESTMENT-INCOME> 11076
<REALIZED-GAINS-CURRENT> 1994
<APPREC-INCREASE-CURRENT> 451
<NET-CHANGE-FROM-OPS> 13521
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> 11358
<DISTRIBUTIONS-OF-GAINS> 1252
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 5003
<NUMBER-OF-SHARES-REDEEMED> 3535
<SHARES-REINVESTED> 821
<NET-CHANGE-IN-ASSETS> 24300
<ACCUMULATED-NII-PRIOR> 0
<ACCUMULATED-GAINS-PRIOR> 0
<OVERDISTRIB-NII-PRIOR> (100)
<OVERDIST-NET-GAINS-PRIOR> (97)
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<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> 884
<AVERAGE-NET-ASSETS> 190197
<PER-SHARE-NAV-BEGIN> 10.24
<PER-SHARE-NII> 0.60
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<AVG-DEBT-PER-SHARE> 0
</TABLE>
<TABLE> <S> <C>
<ARTICLE> 6
<SERIES>
<NUMBER> 5
<NAME> SHORT-TERM FUND
<MULTIPLIER> 1,000
<S> <C>
<PERIOD-TYPE> 12-MOS
<FISCAL-YEAR-END> DEC-31-1998
<PERIOD-END> DEC-31-1998
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<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 75192
<SHARES-COMMON-STOCK> 7514
<SHARES-COMMON-PRIOR> 3460
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<ACCUMULATED-NET-GAINS> (284)
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> (6)
<NET-ASSETS> 74907
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<EXPENSES-NET> 213
<NET-INVESTMENT-INCOME> 3253
<REALIZED-GAINS-CURRENT> 8
<APPREC-INCREASE-CURRENT> 7
<NET-CHANGE-FROM-OPS> 3268
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<DISTRIBUTIONS-OF-INCOME> 3220
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<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 8765
<NUMBER-OF-SHARES-REDEEMED> 4993
<SHARES-REINVESTED> 282
<NET-CHANGE-IN-ASSETS> 40476
<ACCUMULATED-NII-PRIOR> 0
<ACCUMULATED-GAINS-PRIOR> (278)
<OVERDISTRIB-NII-PRIOR> (42)
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<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> 321
<AVERAGE-NET-ASSETS> 60183
<PER-SHARE-NAV-BEGIN> 9.95
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<EXPENSE-RATIO> .35
<AVG-DEBT-OUTSTANDING> 0
<AVG-DEBT-PER-SHARE> 0
</TABLE>
