EXCELSIOR INSTITUTIONAL TRUST, 485BPOS, 1995-06-13

EXCELSIOR INSTITUTIONAL TRUST
485BPOS, 1995-06-13

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As filed with the Securities and Exchange Commission on June 13, 1995
File Nos. 33-78264, 811-8490

SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
----------------
FORM N-1A

REGISTRATION STATEMENT UNDER THE SECURITIES ACT OF 1933
POST-EFFECTIVE AMENDMENT NO. 3

and

REGISTRATION STATEMENT UNDER THE INVESTMENT COMPANY ACT OF 1940
AMENDMENT NO. 5

Excelsior Institutional Trust
(Exact Name of Registrant as Specified in Charter)

6 St. James Avenue, Boston, Massachusetts 02116
(Address of Principal Executive Offices)

Registrant's Telephone Number, including Area Code: 617-423-0800

Thomas M. Lenz
6 St. James Avenue, Boston, Massachusetts 02116
(Name and Address of Agent for Service)

Copy To: Roger P. Joseph, Esq.
Bingham, Dana & Gould, 150 Federal Street, Boston, Massachusetts 02110

It is proposed that this filing will become effective (check appropriate box)

[ ] Immediately upon filing pursuant to paragraph (b)
[X] on June 14, 1995 pursuant to paragraph (b)
[ ] 60 days after filing pursuant to paragraph (a)(i)
[ ] on (date) pursuant to paragraph (a)(i)
[ ] 75 days after filing pursuant to paragraph (a)(ii)
[ ] on (date) pursuant to paragraph (a)(ii) of rule 485.

If appropriate, check the following box:

[ ] this post-effective amendment designates a new effective date for a
previously filed post-effective amendment.

The Registrant has previously registered an indefinite number of its
shares of beneficial interest under the Securities Act of 1933, as amended,
pursuant to Rule 24f-2 under the Investment Company Act of 1940, as amended. The
Registrant expects to file the notice required by Rule 24f-2 (for the fiscal
year ending May 31, 1995) on or about July 30, 1995.

St. James Portfolios has also executed this Registration Statement.

UST187A.EDG

<PAGE>

EXCELSIOR INSTITUTIONAL TRUST
CROSS-REFERENCE SHEET
(As Required by Rule 495)

PART A ITEM NUMBER: Prospectus Headings.

1. COVER PAGE: Cover Page.

2. SYNOPSIS: Summary of Expenses.

3. CONDENSED FINANCIAL INFORMATION: Not applicable.

4. GENERAL DESCRIPTION OF REGISTRANT: Cover Page; Investment Objectives
and Policies; Special Information Concerning Hub and Spoke(R) Structure.

5. MANAGEMENT OF THE FUND: Management of the Trust and Portfolio Series.

5A. MANAGEMENT'S DISCUSSION OF FUND PERFORMANCE: Not applicable.

6. CAPITAL STOCK AND OTHER SECURITIES: Cover Page; Pricing of Shares; How
to Purchase, Exchange and Redeem Shares; Tax Matters; Management of the Trust
and Portfolio Series; Dividends and Capital Gains Distributions; Description
of Shares, Voting Rights and Liabilities.

7. PURCHASE OF SECURITIES BEING OFFERED: How to Purchase, Exchange and
Redeem Shares; Investor Programs.

8. REDEMPTION OR REPURCHASE: How to Purchase, Exchange and Redeem Shares;
Investor Programs.

9. PENDING LEGAL PROCEEDINGS: Not applicable.

<PAGE>

EXCELSIOR INSTITUTIONAL TRUST
CROSS-REFERENCE SHEET
(As Required by Rule 495)

PART B ITEM NUMBER: Statement of Additional Information Headings.

10. COVER PAGE: Cover Page.

11. TABLE OF CONTENTS: Table of Contents.

12. GENERAL INFORMATION AND HISTORY: Not applicable.

13. INVESTMENT OBJECTIVES AND POLICIES: Investment Objectives, Policies and
Restrictions.

14. MANAGEMENT OF THE FUND: Management of the Trust and Portfolio Series.

15. CONTROL PERSONS AND PRINCIPAL HOLDERS OF SECURITIES: Management of the
Trust and Portfolio Series.

16. INVESTMENT ADVISORY AND OTHER SERVICES: Management of the Trust and
Portfolio Series; see Prospectus -- "Management of the Trust and Portfolio
Series".

17. BROKERAGE ALLOCATION AND OTHER PRACTICES: Investment Objectives,
Policies and Restrictions.

18. CAPITAL STOCK AND OTHER SECURITIES: Excelsior Institutional Trust;
Taxation; Description of the Trust; Fund Shares; see Prospectus -- "Management
of the Trust and Portfolio Series" and "Description of Shares, Voting Rights
and Liabilities".

19. PURCHASE, REDEMPTION AND PRICING OF SECURITIES BEING OFFERED:
Determination of Net Asset Value; Valuation of Securities; Additional
Purchase, Exchange and Redemption Information.

20. TAX STATUS: Taxation; see Prospectus -- "Tax Matters".

21. UNDERWRITERS: Management of the Trust and Portfolio Series; see
Prospectus -- "Management of the Trust and Portfolio Series".

22. CALCULATION OF PERFORMANCE DATA: Performance Information.

23. FINANCIAL STATEMENTS: Financial Statements.

PART C

Information required to be included in Part C is set forth under the
appropriate items, so numbered, in Part C of this Registration Statement.

<PAGE>

EXPLANATORY NOTE

This Post-Effective Amendment No. 3 (the "Amendment") to the
Registrant's registration statement on Form N-1A (the "Registration Statement")
is being filed with respect to Excelsior Institutional Bond Index Fund,
Excelsior Institutional Equity Index Fund, Excelsior Institutional Small
Capitalization Fund, Excelsior Institutional Balanced Fund, Excelsior
Institutional Equity Growth Fund, and Excelsior Institutional Value Equity
Income Fund (the "Funds"), each a series of the Registrant, pursuant to the
Registrant's undertaking to file a post-effective amendment, using financials
which need not be certified, within four to six months following the effective
date of this Registration Statement (with respect to the Funds). The Amendment
is being filed to include (i) a supplement to the Registrant's Prospectus
containing unaudited financial information which describes the Funds, and (ii) a
supplement to the Registrant's Statement of Additional Information containing
unaudited financial statements of the Funds. As a result, the Amendment does not
otherwise affect the Registrant's currently effective Prospectus and Statement
of Additional Information, both of which are hereby incorporated herein by
reference as most recently filed pursuant to Rule 497 under the Securities Act
of 1933, as amended.

<PAGE>

EXCELSIOR INSTITUTIONAL TRUST
Supplement to Prospectus dated November 28, 1994

1. The tables captioned "Annual Operating Expenses" and "Example" at pages 1 and
2 of the Prospectus are restated in their entirety as follows:

Annual Operating Expenses
<TABLE>
<CAPTION>
Total
Return Equity
Equity Income Bond Index Bond Index
Fund Fund Fund Fund Fund
<S> <C> <C> <C> <C> <C>

Advisory Fees (after waiver) ................ * * * * *
12b-1 Fees .................................. None None None None None
Other Expenses
Administrative Fees ....................... 0.07% 0.07% 0.07% 0.07% 0.07%
Shareholder Servicing Fees (after waiver) . 0% 0% 0% 0% 0%
Other Operating Expenses (after waivers and
reimbursement) ............................ 0.05% 0.05% 0.05% 0.05% 0.05%

Total Operating Expenses .................... 0.12% 0.12% 0.12% 0.12% 0.12%
(after waivers and reimbursements)

Value
Small Equity Equity International
Cap Balanced Growth Income Equity
Fund Fund Fund Fund Fund

Total Operating Expenses .................... 0.12% 0.12% 0.12% 0.12% 0.25%
(after waivers and reimbursements)

Example

Investors would pay the following expenses on a $1,000 investment,
assuming (1) 5% annual return and (2) redemption of the investment at the end of
the following periods:

1 Year 3 Years
Equity Fund, Income Fund, Total Return Bond Fund, Equity Index Fund, Bond Index Fund,
Small Cap Fund, Balanced Fund, Equity Growth Fund and Value Equity Income Fund.................... $1 $4
International Equity Fund............................................................................ $3 $8
<FN>
- -----------------------

* Each investment adviser has agreed to waive all investment advisory fees.
While no Portfolio pays any fee to its investment adviser, each institutional
investor enters into an asset management services agreement with U.S. Trust
Pacific and agrees to pay annual fees calculated as a specified percentage of
average net assets. In addition, Shareholder Organizations may charge their
customers account fees for investment and other cash management services. See
"How

<PAGE>

to Purchase, Exchange and Redeem Shares" below. Accordingly, the examples do not
reflect an amount for fees paid directly to U.S. Trust Pacific by an
institutional investor or its customers.
</FN>
</TABLE>

2. Footnote 1 at the bottom of page 2 of the Prospectus is deleted.

3. The following is inserted before the caption "Investment Objectives and
Policies" at page 3 of the Prospectus:

FINANCIAL HIGHLIGHTS

The following selected data for a share outstanding for the period July 8, 1994
(commencement of operations) through November 30, 1994 have not been audited by
independent accountants. The Trust's Annual Report will include a discussion of
those factors, strategies and techniques that materially affected its
performance during the period of the report, as well as certain related
information. A copy of the Trust's Annual Report will be made available without
charge upon request.
<TABLE>
<CAPTION>

Equity Bond Small Equity Value Equity
Index Index Capitalization Balanced Growth Income
Fund Fund Fund Fund Fund Fund
<S> <C> <C> <C> <C> <C> <C>
Net Asset Value, Beginning
of Period ............................ $ 7.00 $ 7.00 $ 7.00 $ 7.00 $ 7.00 $ 7.00

----- ------ -------- ------ ------ ------
Investment Operations:
Net investment income ................ 0.12 0.20 0.04 0.15 0.03 0.15
Net realized and unrealized gain (loss
from Portfolio Series (Note A) .... 0.01 (0.18) (0.09) (0.13) (0.00) (0.06)

----- ------ -------- ------ ------ ------
Total from Investment Operations .. 0.13 0.02 (0.05) 0.02 0.03 0.09

----- ------ -------- ------ ------ ------
Distributions:
Dividends from net investment
income ............................... -- (0.20) -- -- -- --

----- ------ -------- ------ ------ ------
Net Asset Value, End of Period ....... $ 7.13 $ 6.82 $ 6.95 $ 7.02 $ 7.03 $ 7.09

----- ------ -------- ------ ------ ------

Total Return ......................... 1.86%(2) 0.64%(3) (0.71)%(2) 0.29%(2) 0.43%(2) 1.29%(2)
Ratios and Supplemental Data:
Ratios to Average Net Assets
Expenses(1) ....................... 0.05%(2) 0.12%(3) 0.05%(2) 0.05%(2) 0.05%(2) 0.05%(2)
Net investment income(1) .......... 1.22%(2) 7.21%(3) 0.63%(2) 2.11%(2) 0.46%(2) 1.98%(2)
Net Assets at end of period .......... $18,993 $21,167 $ 12,822 $58,352 $48,254 $17,533
(000's omitted)

<FN>

(1) Reflects the Fund's proportionate share of the corresponding Portfolio's
expenses as well as voluntary fee waivers and expense reimbursements by agents
of the Portfolio Series and voluntary fee waivers and expense reimbursements by
agents of the Trust. If the voluntary waivers and expense reimbursements had not
been in place, the ratios of expenses and net investment income to average net
assets for the period July 8, 1994 to November 30, 1994 would have been as
follows:

Expenses ............................ 0.50%(2) 1.26%(3) 0.81%(2) 0.52%(2) 0.53%(2) 0.66%(2)
Net Investment Income................ 0.76%(2) 6.07%(3) (0.13%)(2) 1.64%(2) (0.02%)(2) 1.36%(2)

(2) Not Annualized

(3) Annualized

Note A: The amount shown for the Equity Index Fund for a share outstanding
throughout the period does not agree with the aggregate net gains on investments
for the period because of timing of sales and repurchases of the Fund's shares
in relation to fluctuating market values of the investments of the Fund."
</FN>
</TABLE>

4. The following two sentences are added at the end of the third paragraph on
page 39 of the Prospectus: "U.S. Trust Pacific has agreed to waive all
investment advisory fees with respect to each Portfolio listed above. While no
such Portfolio pays investment advisory fees to U.S. Trust Pacific, each
institutional investor enters into an asset management

<PAGE>

services agreement with U.S. Trust Pacific and agrees to pay annual fees
calculated as a specified percentage of average net assets."

5. The following two sentences are added at the end of the fourth paragraph on
page 41 of the Prospectus: "U.S. Trust has agreed to waive all investment
advisory fees under the Advisory Agreement. While no such Portfolio pays
investment advisory fees to U.S. Trust, each institutional investor enters into
an asset management services agreement with U.S. Trust Pacific and agrees to pay
annual fees calculated as a specified percentage of average net assets."

6. Cyril Theccanat is the person primarily responsible for the day-to-day
management of the Portfolios corresponding to the Bond Index, Equity Index and
Small Cap Funds. Reference to Philip DiDio as manager of the Portfolios
corresponding to the Equity Index and Small Cap Funds is deleted from the first
paragraph on page 41 of the Prospectus.

7. The words ", if any," are added after the words "advisory fees" in the last
line of the second paragraph on page 44.

8. Dividends equal to all or substantially all of the International Equity
Fund's net investment income are declared and paid at least once a year. The
reference to quarterly dividend payments with respect to the International
Equity Fund is deleted from the first full paragraph on page 45 of the
Prospectus.

9. The second to the last sentence of the third full paragraph at page 47 of the
Prospectus is restated in its entirety as follows: "Any fees charged by
Shareholder Organizations to Customers that have invested in Shares and any
charges to institutional investors for asset management and related services
will not be included in calculations of performance."

Supplement dated June 14, 1995

<PAGE>

EXCELSIOR INSTITUTIONAL TRUST

FINANCIAL STATEMENTS (UNAUDITED)

NOVEMBER 30, 1994

SUPPLEMENT DATED JUNE 14, 1995 TO
STATEMENT OF ADDITIONAL INFORMATION DATED NOVEMBER 28, 1994

<PAGE>
January 13, 1995

DEAR SHAREHOLDER:

We are pleased to present you with the first semiannual report for
Excelsior Institutional Trust. This semiannual report is designed to provide a
financial summary of the Trust's operations for the period July 8, 1994
(commencement of operations) to November 30, 1994.

We welcome the opportunity to assist you in fulfilling your financial
objectives. We remain committed to providing prudent investment management in a
rapidly changing investment world.

Sincerely,

/s/ Philip W. Coolidge
Philip W. Coolidge
PRESIDENT
<PAGE>
EXCELSIOR INSTITUTIONAL TRUST
STATEMENT OF ASSETS AND LIABILITIES (UNAUDITED)
NOVEMBER 30, 1994

<TABLE>
<CAPTION>
EQUITY BOND SMALL EQUITY VALUE EQUITY
INDEX INDEX CAPITALIZATION BALANCED GROWTH INCOME
FUND FUND FUND FUND FUND FUND
----------- ------------ ---------------- ------------ ------------ ------------
<S> <C> <C> <C> <C> <C> <C>
ASSETS:
Investment in corresponding St.
James Portfolios ("Portfolio
Series"), at value (Note 1a)... $18,991,460 $ 21,294,437 $12,819,333 $ 58,355,430 $ 48,256,470 $17,531,274
Receivable from affiliate (Note
2d)............................ 7,197 9,202 10,224 3,613 4,765 9,089
Deferred organization expenses
(Note 1d)...................... 11,276 9,687 6,635 26,157 22,055 8,972
----------- ------------ ---------------- ------------ ------------ ------------
Total Assets................. 19,009,933 21,313,326 12,836,192 58,385,200 48,283,290 17,549,335
----------- ------------ ---------------- ------------ ------------ ------------
LIABILITIES:
Dividends payable................ -- 128,808 -- -- -- --
Organization expenses payable
(Note 1d)...................... 4,380 4,562 3,332 10,945 9,366 4,197
Servicing and fund accounting
agent fees payable (Note 2a)... 1,000 1,000 1,000 1,000 1,000 1,000
Trustees' fees and expenses
payable (Note 2e).............. 938 832 536 2,414 2,021 758
Accrued expenses................. 11,068 11,279 9,641 18,474 16,508 10,530
----------- ------------ ---------------- ------------ ------------ ------------
Total Liabilities............ 17,386 146,481 14,509 32,833 28,895 16,485
----------- ------------ ---------------- ------------ ------------ ------------
NET ASSETS:........................ $18,992,547 $ 21,166,845 $12,821,683 $ 58,352,367 $ 48,254,395 $17,532,850
----------- ------------ ---------------- ------------ ------------ ------------
----------- ------------ ---------------- ------------ ------------ ------------
NET ASSETS CONSIST OF:
Paid-in capital.................. 18,249,706 21,706,843 12,941,575 58,220,011 48,088,784 17,279,488
Accumulated undistributed net
investment income.............. 306,188 25 79,281 1,249,863 228,112 372,132
Accumulated undistributed net
realized gain (loss) from
Portfolio Series............... 339,170 56,584 25,561 202,799 (368,342) 158,703
Net unrealized appreciation
(depreciation) from Portfolio
Series......................... 97,483 (596,607) (224,734) (1,320,306) 305,841 (277,473)
----------- ------------ ---------------- ------------ ------------ ------------
NET ASSETS APPLICABLE TO
SHARES OF BENEFICIAL INTEREST
OUTSTANDING...................... $18,992,547 $ 21,166,845 $12,821,683 $ 58,352,367 $ 48,254,395 $17,532,850
----------- ------------ ---------------- ------------ ------------ ------------
SHARES OUTSTANDING (UNLIMITED
NUMBER OF $0.00001 PAR VALUE
SHARES AUTHORIZED FOR EACH
FUND)............................ 2,662,025 3,103,879 1,843,877 8,314,662 6,867,217 2,474,420
----------- ------------ ---------------- ------------ ------------ ------------
NET ASSET VALUE PER SHARE (NET
ASSETS DIVIDED BY SHARES
OUTSTANDING)..................... $7.13 $6.82 $6.95 $7.02 $7.03 $7.09
----------- ------------ ---------------- ------------ ------------ ------------
----------- ------------ ---------------- ------------ ------------ ------------
</TABLE>

SEE NOTES TO FINANCIAL STATEMENTS.

1
<PAGE>
EXCELSIOR INSTITUTIONAL TRUST
STATEMENT OF OPERATIONS (UNAUDITED)
FOR THE PERIOD JULY 8, 1994 (COMMENCEMENT OF OPERATIONS) THROUGH NOVEMBER 30,
1994

<TABLE>
<CAPTION>
VALUE
EQUITY BOND SMALL EQUITY EQUITY
INDEX INDEX CAPITALIZATION BALANCED GROWTH INCOME
FUND FUND FUND FUND FUND FUND
---------- ---------- ---------------- ---------- ---------- ----------
<S> <C> <C> <C> <C> <C> <C>
INVESTMENT INCOME ALLOCATED FROM
CORRESPONDING PORTFOLIO SERIES
(NOTE 1):
Interest Income.................. $ 318,350 $ 600,500 $ 85,359 $1,278,142 $ 251,635 $ 381,099
Portfolio Expenses (Note A)...... -- -- -- -- -- --
---------- ---------- ---------------- ---------- ---------- ----------
Net Investment Income from
Portfolio Series............... 318,350 600,500 85,359 1,278,142 251,635 381,099

EXPENSES (Note 1f):
Servicing and fund accounting
agent fee (Note 2a)............ 4,677 4,677 4,677 4,677 4,677 4,677
Shareholder servicing fee
(Note 2c)...................... 24,983 20,476 12,512 58,872 48,944 18,666
Transfer agent fee (Note 2b)..... 7,150 7,150 7,150 7,150 7,150 7,150
Prospectus and shareholder
reports........................ 5,034 5,041 4,993 5,288 5,227 5,027
Auditing fees.................... 2,273 2,273 2,273 2,273 2,273 2,273
Legal fees....................... 2,776 3,150 1,899 8,574 7,078 2,489
Trustees' fees and expenses (Note
2e)............................ 1,397 1,307 832 3,542 2,957 1,216
Amortization of organization
expenses (Note 1d)............. 973 836 573 2,258 1,904 774
Miscellaneous.................... 2,229 1,746 1,055 5,280 4,172 1,600
---------- ---------- ---------------- ---------- ---------- ----------
Total Expenses................... 51,492 46,656 35,964 97,914 84,382 43,872
Less: Waiver of fees
(Note 2b,c).............. (32,133) (27,626) (19,662) (66,022) (56,094) (25,816)
Reimbursement of expenses
(Note 2d)................ (7,197) (9,202) (10,224) (3,613) (4,765) (9,089)
---------- ---------- ---------------- ---------- ---------- ----------
Net Expenses..................... 12,162 9,828 6,078 28,279 23,523 8,967
---------- ---------- ---------------- ---------- ---------- ----------
NET INVESTMENT INCOME.............. 306,188 590,672 79,281 1,249,863 228,112 372,132
---------- ---------- ---------------- ---------- ---------- ----------
REALIZED AND UNREALIZED GAIN (LOSS)
FROM PORTFOLIO SERIES:
Net realized gain (loss)......... 339,170 56,584 25,561 202,799 (368,342) 158,703
Unrealized appreciation
(depreciation)................. 97,483 (596,606) (224,734) (1,320,306) 305,841 (277,473)
---------- ---------- ---------------- ---------- ---------- ----------
NET REALIZED AND UNREALIZED
GAIN (LOSS)...................... 436,653 (540,022) (199,173) (1,117,507) (62,501) (118,770)
NET INCREASE (DECREASE) IN NET
ASSETS RESULTING FROM
OPERATIONS....................... $ 742,841 $ 50,650 $(119,892) $ 132,356 $ 165,611 $ 253,362
---------- ---------- ---------------- ---------- ---------- ----------
---------- ---------- ---------------- ---------- ---------- ----------
Note A: Net of waiver and
reimbursement: $ 75,539 $ 56,849 $ 66,004 $ 210,050 $ 178,980 $ 80,741
</TABLE>

SEE NOTES TO FINANCIAL STATEMENTS.

2
<PAGE>
EXCELSIOR INSTITUTIONAL TRUST
STATEMENT OF CHANGES IN NET ASSETS (UNAUDITED)
FOR THE PERIOD JULY 8, 1994 (COMMENCEMENT OF OPERATIONS) THROUGH NOVEMBER 30,
1994

<TABLE>
<CAPTION>
EQUITY BOND SMALL EQUITY VALUE EQUITY
INDEX INDEX CAPITALIZATION BALANCED GROWTH INCOME
FUND FUND FUND FUND FUND FUND
------------ ------------ ------------- ------------ ------------ ------------
<S> <C> <C> <C> <C> <C> <C>
INCREASE (DECREASE) IN NET ASSETS
FROM:
OPERATIONS:
Net investment income............ $ 306,188 $ 590,672 $ 79,281 $ 1,249,863 $ 228,112 $ 372,132
Net realized gain (loss) from
Portfolio Series............... 339,170 56,584 25,561 202,799 (368,342) 158,703
Net unrealized appreciation
(depreciation) from Portfolio
Series for the period.......... 97,483 (596,606) (224,734) (1,320,306) 305,841 (277,473)
------------ ------------ ------------- ------------ ------------ ------------
Net increase (decrease) in
net assets resulting from
operations................... 742,841 50,650 (119,892) 132,356 165,611 253,362
------------ ------------ ------------- ------------ ------------ ------------
DISTRIBUTIONS TO SHAREHOLDERS
FROM:
Net investment income.......... -- (590,647) -- -- -- --
------------ ------------ ------------- ------------ ------------ ------------
TRANSACTIONS IN SHARES OF
BENEFICIAL INTEREST:
Net proceeds from shares
sold......................... 26,980,174 21,689,798 13,187,902 61,998,705 52,307,078 21,635,073
Reinvestment of dividends...... -- 377 -- -- -- --
Cost of shares redeemed........ (8,747,135) -- (262,994) (3,795,361) (4,234,961) (4,372,252)
------------ ------------ ------------- ------------ ------------ ------------
Net increase in net assets from
beneficial interest
transactions................. 18,233,039 21,690,175 12,924,908 58,203,344 48,072,117 17,262,821
TOTAL INCREASE IN NET
ASSETS................... 18,975,880 21,150,178 12,805,016 58,335,700 48,237,728 17,516,183
NET ASSETS:
Beginning of period (Note 1)..... 16,667 16,667 16,667 16,667 16,667 16,667
------------ ------------ ------------- ------------ ------------ ------------
End of period (Note A)........... $ 18,992,547 $ 21,166,845 $12,821,683 $ 58,352,367 $ 48,254,395 $17,532,850
------------ ------------ ------------- ------------ ------------ ------------
------------ ------------ ------------- ------------ ------------ ------------
CAPITAL SHARE TRANSACTIONS:
Shares sold...................... 3,853,717 3,103,825 1,880,573 8,849,116 7,465,790 3,085,339
Shares issued for dividend
reinvestment................... -- 54 -- -- -- --
Shares redeemed.................. (1,191,692) -- (36,696) (534,454) (598,573) (610,919)
------------ ------------ ------------- ------------ ------------ ------------
NET INCREASE IN SHARES
OUTSTANDING: 2,662,025 3,103,879 1,843,877 8,314,662 6,867,217 2,474,420
------------ ------------ ------------- ------------ ------------ ------------
------------ ------------ ------------- ------------ ------------ ------------
Note A: Including undistributed
net investment income: $ 306,188 $ 25 $ 79,281 $ 1,249,863 $ 228,112 $ 372,132
</TABLE>

SEE NOTES TO FINANCIAL STATEMENTS.

3
<PAGE>
EXCELSIOR INSTITUTIONAL TRUST
FINANCIAL HIGHLIGHTS (UNAUDITED)
FOR THE PERIOD JULY 8, 1994 (COMMENCEMENT OF OPERATIONS) THROUGH NOVEMBER 30,
1994
SELECTED DATA FOR A SHARE OUTSTANDING THROUGHOUT THE PERIOD ARE AS FOLLOWS:

<TABLE>
<CAPTION>
VALUE
EQUITY BOND SMALL EQUITY EQUITY
INDEX INDEX CAPITALIZATION BALANCED GROWTH INCOME
FUND FUND FUND FUND FUND FUND
----------- ----------- ----------- ----------- ----------- -----------
<S> <C> <C> <C> <C> <C> <C>
NET ASSET VALUE, BEGINNING
OF PERIOD........................ $ 7.00 $ 7.00 $ 7.00 $ 7.00 $ 7.00 $ 7.00
----------- ----------- ----------- ----------- ----------- -----------
INVESTMENT OPERATIONS:
Net investment income.............. 0.12 0.20 0.04 0.15 0.03 0.15
Net realized and unrealized gain
(loss) from Portfolio Series
(Note A)......................... 0.01 (0.18) (0.09) (0.13) (0.00) (0.06)
----------- ----------- ----------- ----------- ----------- -----------
TOTAL FROM INVESTMENT
OPERATIONS..................... 0.13 0.02 (0.05) 0.02 0.03 0.09
----------- ----------- ----------- ----------- ----------- -----------
DISTRIBUTIONS:
Dividends from net investment
income........................... -- (0.20) -- -- -- --
----------- ----------- ----------- ----------- ----------- -----------
NET ASSET VALUE, END OF PERIOD..... $ 7.13 $ 6.82 $ 6.95 $ 7.02 $ 7.03 $ 7.09
----------- ----------- ----------- ----------- ----------- -----------
----------- ----------- ----------- ----------- ----------- -----------

TOTAL RETURN....................... 1.86%(2) 0.64%(3) (0.71)%(2) 0.29%(2) 0.43%(2) 1.29%(2)
RATIOS AND SUPPLEMENTAL DATA:
Ratios to Average Net Assets
Expenses(1)...................... 0.05%(2) 0.12%(3) 0.05%(2) 0.05%(2) 0.05%(2) 0.05%(2)
Net investment income(1)......... 1.22%(2) 7.21%(3) 0.63%(2) 2.11%(2) 0.46%(2) 1.98%(2)
Net Assets at end of period (000's
omitted)......................... $18,993 $21,167 $12,822 $58,352 $48,254 $17,533
</TABLE>

(1) Reflects the Fund's proportionate share of its corresponding Portfolio's
expenses as well as voluntary fee waivers and reimbursements by agents of the
Portfolio Series and a voluntary fee waiver and an expense reimbursement by
agents of the Trust. If the voluntary waivers and expense reimbursements had not
been in place, the ratios of expenses and net investment income to average net
assets for the period July 8, 1994 to November 30, 1994 would have been as
follows:

<TABLE>
<S> <C> <C> <C> <C> <C> <C>
Expenses...................... 0.50 %(2) 1.26 %(3) 0.81 %(2) 0.52 %(2) 0.53 %(2) 0.66 %(2)
Net Investment Income......... 0.76 %(2) 6.07 %(3) (0.13 %)(2) 1.64 %(2) (0.02 %)(2) 1.36 %(2)
</TABLE>

(2) Not Annualized
(3) Annualized

SEE NOTES TO FINANCIAL STATEMENTS.

4
<PAGE>
EXCELSIOR INSTITUTIONAL TRUST
NOTES TO FINANCIAL STATEMENTS (UNAUDITED)

1. SIGNIFICANT ACCOUNTING POLICIES:

Excelsior Institutional Trust (the "Trust") was organized as a business
trust under the laws of the State of Delaware, with the Funds established as
separate series of the Trust, on April 27, 1994. The Trust is comprised of
twelve funds, six of which are active and described herein (each a "Fund";
collectively, the "Funds"), as follows: Excelsior Institutional Equity Index
Fund ("Equity Index Fund"), Excelsior Institutional Bond Index Fund ("Bond Index
Fund"), Excelsior Institutional Small Capitalization Fund ("Small Cap Fund"),
Excelsior Institutional Balanced Fund ("Balanced Fund"), Excelsior Institutional
Equity Growth Fund ("Equity Growth Fund") and Excelsior Institutional Value
Equity Income Fund ("Value Equity Income Fund"). The Trust had no operations
until July 8, 1994 (when operations commenced) other than matters relating to
its organization and registration as an open-end diversified management
investment company under the Investment Company Act of 1940 ("Act") and the
Securities Act of 1933 and the sale and issuance of 2,380.953 shares of
beneficial interest ("Initial Shares") of each Fund to UST Distributors, Inc.,
the Trust's distributor.

The Trust seeks to achieve each Fund's investment objective by investing all
of that Fund's investable assets in a corresponding portfolio or series (each a
"Portfolio"; collectively, the "Portfolios") of St. James Portfolios, an
open-end diversified management investment company for which United States Trust
Company of the Pacific Northwest ("U.S. Trust Pacific") serves as investment
advisor. Each Fund has the same investment objective and policies as its
corresponding Portfolio. The value of a Fund's investment reflects its
proportionate beneficial interest in the net assets of its corresponding
Portfolio and is as follows at November 30, 1994:

<TABLE>
<CAPTION>
FUND PERCENTAGE PORTFOLIO
- ------------------------------------------ ------------- ---------------------------------------------------
<S> <C> <C>
Equity Index Fund 99.99% Equity Market Portfolio
Bond Index Fund 99.99% Bond Market Portfolio
Small Cap Fund 99.99% Small Cap Portfolio
Balanced Fund 99.99% Balanced Portfolio
Equity Growth Fund 99.99% Equity Growth Portfolio
Value Equity Income Fund 99.99% Value Equity Income Portfolio
</TABLE>

U.S. Trust Pacific has delegated the daily management of the security
holdings of the Portfolios to the investment managers named below, acting as
subadvisors:

<TABLE>
<S> <C>
Equity Index Fund, Bond Index Fund
and Small Cap Fund............... United States Trust Company of New York ("U.S.
Trust")
Balanced Fund..................... Becker Capital Management, Inc.
Equity Growth Fund................ Luther King Capital Management
Value Equity Income Fund.......... Spare, Kaplan, Bischel & Associates
</TABLE>

U.S. Trust Pacific is a subsidiary of U.S. Trust. The performance of a Fund
is directly affected by the performance of its corresponding Portfolio. The
financial statements of the Portfolios, including their schedule of investments,
are included elsewhere in this report and should be read in conjunction with the
Trust's financial statements. The Trust's fiscal year ends May 31.

5
<PAGE>
EXCELSIOR INSTITUTIONAL TRUST
NOTES TO FINANCIAL STATEMENTS (UNAUDITED) (CONTINUED)

a) VALUATION OF INVESTMENTS--Valuation of securities by each Portfolio is
discussed in Note 1 of the Portfolios' Notes to Financial Statements which are
included elsewhere in this report.

b) INVESTMENT INCOME--Each Fund records its share of net investment income,
realized and unrealized gain and loss and adjusts its investment in its
respective Portfolio each day. All the net investment income and realized and
unrealized gain and loss of each Portfolio is allocated among each Fund and
other investors in each Portfolio at the time of such determination.

c) DIVIDENDS TO SHAREHOLDERS--Dividends equal to all or substantially all of
each Fund's net investment income will be declared and paid as follows: For the
Small Cap Fund and Equity Index Fund, dividends will be declared and paid at
least once a year; for the Bond Index Fund, dividends will be declared and paid
at least once a month; and for the Balanced Fund, Equity Growth Fund and the
Value Equity Income Fund, dividends will be declared and paid at least
quarterly. Distributions to shareholders of net realized capital gains, if any,
are normally declared and paid annually.

d) DEFERRED ORGANIZATION EXPENSES--The following organization expenses are
being deferred and will be amortized on a straight-line basis over a period not
to exceed five years beginning with the commencement of operations of the Trust:

<TABLE>
<S> <C>
Equity Index Fund................ $ 12,249
Bond Index Fund.................. $ 10,523
Small Cap Fund................... $ 7,208
Balanced Fund.................... $ 28,415
Equity Growth Fund............... $ 23,959
Value Equity Income Fund......... $ 9,746
</TABLE>

The amount paid by a Fund on any redemption of the Fund's Initial Shares,
will be reduced by the pro rata portion of any unamortized organization expenses
of the Fund and the corresponding Portfolio which the number of Initial Shares
redeemed bears to the total number of Initial Shares outstanding immediately
prior to such redemption, and the amount of such reduction in excess of the
unamortized organization expenses of the Fund shall be contributed by the Trust
to the Portfolio.

e) FEDERAL INCOME TAXES--It is the policy of each Fund to qualify as a
regulated investment company, if such qualification is in the best interest of
the shareholders, by complying with the requirements of the Internal Revenue
Code applicable to regulated investment companies, and by distributing
substantially all of its taxable earnings to its shareholders. For Federal
income tax purposes, each Fund is treated as a single entity for the purpose of
determining such qualification.

f) EXPENSE ALLOCATION--Expenses incurred by the Trust with respect to any
two or more Funds in the Trust are allocated in proportion to the average net
assets of each Fund, except where allocations of direct expenses to each Fund
can otherwise be fairly made. Expenses directly attributable to a Fund are
charged to that Fund.

g) OTHER--All of the net income of a Portfolio is allocated pro rata among
its corresponding Fund and the other investors in the Portfolio at the time of
such determination.

2. TRANSACTIONS WITH AFFILIATES

a) Pursuant to a Servicing and Fund Accounting Agreement ("Agreement")
between the Trust and Signature Financial Services, Inc. ("SFSI"), SFSI serves
as the servicing and fund accounting

6
<PAGE>
EXCELSIOR INSTITUTIONAL TRUST
NOTES TO FINANCIAL STATEMENTS (UNAUDITED) (CONTINUED)
agent to the Trust, providing fund accounting and other services necessary for
the operation of the Trust and furnishing office facilities required for
conducting the business of the Trust. Certain officers of SFSI serve as officers
of the Trust and are compensated by SFSI. For its fund accounting services under
the Agreement, SFSI receives a fee, payable monthly, of $12,000 per year per
Fund. For the period July 8, 1994 (commencement of operations) through November
30, 1994, fund accounting fees for each Fund amounted to $4,677.

b) Mutual Funds Service Company ("MFSC"), an affiliate of U.S. Trust, serves
as the Trust's transfer agent. For its transfer agency services, MFSC receives a
fee payable monthly of $18,000 per year per Fund. For the period July 8, 1994
(commencement of operations) through November 30, 1994, MFSC has voluntarily
agreed to waive its transfer agency fees of $7,150 per Fund.

c) The Trust, on behalf of the Funds, has a shareholder servicing agreement
with U.S. Trust and expects to enter into shareholder servicing agreements
("Shareholder Service Agreements") with one or more shareholder servicing agents
("Shareholder Service Agents"). Pursuant to the Shareholder Service Agreements,
Shareholder Service Agents are entitled to receive a shareholder servicing fee
payable monthly, computed at an annual rate of up to 0.25% of the average daily
net assets of each Fund represented by shares owned by customers of the
Shareholder Service Agents. The services provided may include personal services
relating to shareholder accounts, such as answering shareholder inquiries
regarding the Funds and providing reports and other information. In addition,
certain Shareholder Service Agents may perform recordkeeping and administrative
functions for which they are entitled to receive a fee payable monthly, computed
at an annual rate of up to 0.15% of the average daily net assets of each Fund
represented by shares owned by customers of the Shareholder Service Agents. Fees
paid to Shareholder Service Agents may not exceed on an annualized basis 0.40%
of the average daily net assets of a Fund represented by shares owned by
customers of Shareholder Service Agents. For the period July 8, 1994
(commencement of operations) through November 30, 1994, U.S. Trust voluntarily
agreed to waive all its shareholder servicing fees, amounting to the following:

<TABLE>
<S> <C>
Equity Index Fund................ $ 24,983
Bond Index Fund.................. $ 20,476
Small Cap Fund................... $ 12,512
Balanced Fund.................... $ 58,872
Equity Growth Fund............... $ 48,944
Value Equity Income Fund......... $ 18,666
</TABLE>

d) U.S. Trust and U.S. Trust Pacific have voluntarily agreed to waive
certain of their fees, and U.S. Trust Pacific has voluntarily agreed to
reimburse the Trust and the Portfolio Series for certain administrative fees and
other expenses. After giving effect to such waivers and reimbursements, the
combined annual operating expenses (including amortization of organizational
expenses but exclusive of taxes, interest, brokerage commissions and
extraordinary expenses) of each Fund and its corresponding Portfolio will be
0.12% of average daily net assets. For the period July 8, 1994 (commencement of
operations) through November 30, 1994, U.S. Trust Pacific voluntarily reimbursed
the Trust the following amounts:

<TABLE>
<S> <C>
Equity Index Fund................ $ 7,197
Bond Index Fund.................. $ 9,202
Small Cap Fund................... $ 10,224
Balanced Fund.................... $ 3,613
Equity Growth Fund............... $ 4,765
Value Equity Income Fund......... $ 9,089
</TABLE>

7
<PAGE>
EXCELSIOR INSTITUTIONAL TRUST
NOTES TO FINANCIAL STATEMENTS (UNAUDITED) (CONTINUED)

e) Independent Trustees receive an annual retainer of $4,000 and an
additional $250 for each meeting of the Board of Trustees attended. In addition,
the Trust reimburses the independent Trustees for reasonable expenses incurred
when acting in their capacity as Trustees.

3. INVESTMENT TRANSACTIONS

Additions and reductions in the Trust's investment in the Portfolio Series
amounted to:

<TABLE>
<CAPTION>
ADDITIONS REDUCTIONS
------------- ------------
<S> <C> <C>
Equity Index Fund.............................................................. $ 26,996,842 $ 8,760,364
Bond Index Fund................................................................ $ 21,706,464 $ 472,505
Small Cap Fund................................................................. $ 13,204,569 $ 271,422
Balanced Fund.................................................................. $ 62,015,373 $ 3,820,577
Equity Growth Fund............................................................. $ 52,323,745 $ 4,256,410
Value Equity Income Fund....................................................... $ 21,651,740 $ 4,382,795
</TABLE>

8
<PAGE>
ST. JAMES PORTFOLIOS
SCHEDULE OF INVESTMENTS
NOVEMBER 30, 1994 (UNAUDITED)

EQUITY MARKET PORTFOLIO
<TABLE>
<CAPTION>

SHARES VALUE
- --------- ------------
<S> <C> <C>

COMMON STOCK--97.08%

AEROSPACE--0.50%
200 Ball.................................... $ 5,625
400 Lockheed................................ 27,500
500 Martin Marietta......................... 21,688
1,200 Rockwell International.................. 40,650
-----------
95,463
-----------
AIRCRAFT & PARTS--3.68%
1,600 Allied Signal........................... 52,200
1,900 Boeing.................................. 85,025
400 General Dynamics........................ 16,100
9,600 General Electric........................ 441,600
200 McDonnell Douglas....................... 27,900
300 Northrup Grumman........................ 12,188
500 Textron................................. 23,500
700 United Technologies..................... 40,950
-----------
699,463
-----------
AIRLINES--0.18%
300 Delta Air Lines......................... 15,038
800 Southwest Airlines...................... 16,900
300 USAir Group............................. 1,463
-----------
33,401
-----------
APPAREL--0.19%
200 Hartmarx................................ 1,075
400 Liz Claiborne........................... 9,050
100 Osh Kosh B Gosh......................... 1,325
200 Russell................................. 6,075
400 VF...................................... 19,400
-----------
36,925
-----------
AUTOMOTIVE--3.16%
200 Briggs & Stratton....................... 6,700
200 Chrysler................................ 96,750
500 Cooper Tire & Rubber.................... 11,687
600 Dana.................................... 12,975
500 Deluxe Corporation...................... 13,875
400 Eaton................................... 19,050
300 Echlin.................................. 9,075
300 Fleetwood Enterprises,.................. 5,888
5,600 Ford Motor.............................. 151,900
4,200 General Motors.......................... 160,125
700 Genuine Parts........................... 24,413
800 Goodyear Tire & Rubber.................. 27,100
AUTOMOTIVE--(CONTINUED)
600 Illinois Tool Works..................... $ 24,300
400 Navistar International*................. 5,250
200 Paccar.................................. 8,300
300 Pep Boys, Manny, Moe & Jack............. 9,713
200 Snap-On................................. 6,300
200 Varity*................................. 7,450
-----------
600,851
-----------
BANKING--5.32%
700 Ahmanson H F............................ 11,638
2,300 Banc One................................ 61,813
600 Bank of Boston.......................... 16,050
2,100 BankAmerica............................. 86,100
400 Bankers Trust........................... 23,700
1,000 Chase Manhattan (The)................... 35,750
1,400 Chemical Banking........................ 50,925
2,200 Citicorp................................ 91,575
800 Corestates Financial.................... 19,800
500 First Chicago........................... 23,250
500 First Interstate Bancorp................ 35,250
1,000 First Union............................. 39,875
800 Fleet Financial Group................... 24,900
300 Golden West Financial................... 10,500
700 Great Western Financial................. 11,900
1,100 J P Morgan & Co......................... 64,625
1,400 Key..................................... 34,125
500 Mellon Bank............................. 24,844
800 National City........................... 20,100
1,500 Nationsbank............................. 67,313
900 NBD Bancorp............................. 24,413
1,800 Norwest................................. 39,150
1,300 PNC Bank................................ 26,975
700 Shawmut National........................ 12,425
700 SunTrust Banks.......................... 32,988
600 U.S. Bancorp............................ 13,800
1,100 UST..................................... 30,388
1,000 Wachovia................................ 32,625
300 Wells Fargo............................. 43,313
-----------
1,010,110
-----------
CHEMICALS--3.38%
600 AIR Products & Chemicals................ 26,625
1,500 Dow Chemical............................ 96,000
3,800 E I Dupont De Nemours & Co.............. 204,725
</TABLE>

SEE NOTES TO FINANCIAL STATEMENTS.

9
<PAGE>
ST. JAMES PORTFOLIOS
SCHEDULE OF INVESTMENTS
NOVEMBER 30, 1994 (UNAUDITED)

EQUITY MARKET PORTFOLIO (CONTINUED)
<TABLE>
<CAPTION>

SHARES VALUE
- -------- -----------
<S> <C> <C>
COMMON STOCK (CONTINUED)

CHEMICALS--(CONTINUED)
500 Eastman Chemical........................ $ 23,563
100 First Mississippi....................... 2,213
200 FMC*.................................... 11,650
400 Great Lakes Chemical.................... 21,200
200 Hercules................................ 22,875
600 International Flavors & Fragrances...... 26,400
700 Monsanto................................ 50,400
800 Morton International.................... 22,000
400 Nalco Chemical.......................... 13,000
200 Owens Corning Fiberglass*............... 5,800
1,200 PPG Industries.......................... 43,200
800 Praxair................................. 16,200
400 Rohm & Haas............................. 22,300
300 Sigma Aldrich........................... 10,388
800 Union Carbide........................... 22,900
-----------
641,439
-----------
COMMUNICATION--9.83%
2,700 Airtouch Communications................. 73,238
100 Andrew.................................. 4,875
8,800 AT&T.................................... 432,300
2,400 Bell Atlantic........................... 120,300
2,800 Bellsouth............................... 145,250
600 DSC Communications...................... 18,750
200 E Systems............................... 7,325
5,300 GTE..................................... 162,313
700 ITT..................................... 55,738
3,600 MCI Communications...................... 70,200
3,200 Motorola................................ 180,400
1,400 Northern Telecom Ltd.................... 44,800
2,300 Nynex................................... 86,538
2,400 Pacific Telesis Group................... 69,600
400 Scientific Atlanta...................... 7,900
3,400 Southwestern Bell....................... 140,675
1,900 Sprint.................................. 56,763
3,200 Tele-Communications*.................... 75,600
400 TRW..................................... 25,400
2,500 US West................................. 88,125
-----------
1,866,090
-----------
COMPUTER & OTHER DATA PROCESSING
SERVICES--6.08%
600 Amdahl*................................. 5,850
700 Apple Computer.......................... 26,075
COMPUTER & OTHER DATA PROCESSING
SERVICES--(CONTINUED)
300 Autodesk................................ $ 11,288
800 Automatic Data Processing............... 44,700
200 Ceridian Corporation.................... 5,000
1,400 Compaq Computer......................... 54,775
9,000 Computer Associates Intl................ 40,950
300 Computer Sciences*...................... 13,838
100 Cray Research*.......................... 1,838
200 Data General*........................... 2,150
800 Digital Equipment*...................... 27,200
600 First Data.............................. 28,725
200 Harris Corp............................. 8,200
1,400 Hewlett-Packard......................... 137,200
700 Honeywell............................... 20,475
300 Intergraph.............................. 2,363
3,300 International Business Machines......... 233,475
300 Lotus Development*...................... 13,425
600 Micron Technology....................... 24,900
3,200 Microsoft............................... 201,200
2,100 Novell.................................. 41,738
1,600 Oracle Systems*......................... 66,000
900 Pitney Bowes............................ 29,925
500 Sun Microsystems*....................... 16,750
600 Tandem Computers*....................... 10,200
400 Tandy................................... 18,450
1,000 Unisys*................................. 9,375
600 Xerox................................... 58,950
-----------
1,155,015
-----------
CONSTRUCTION & ENGINEERING--0.16%
200 Foster Wheeler.......................... 5,725
600 Halliburton............................. 20,925
200 Morrison Knudsen........................ 2,950
-----------
29,600
-----------
CONSTRUCTION & MINING EQUIPMENT--0.48%
800 Baker Hughs............................. 14,400
1,100 Caterpillar Tractor..................... 59,400
300 Dover................................... 15,338
100 Harnischfeger Industries................ 2,662
-----------
91,800
-----------
</TABLE>

SEE NOTES TO FINANCIAL STATEMENTS.

10
<PAGE>
ST. JAMES PORTFOLIOS
SCHEDULE OF INVESTMENTS
NOVEMBER 30, 1994 (UNAUDITED)

EQUITY MARKET PORTFOLIO (CONTINUED)
<TABLE>
<CAPTION>

SHARES VALUE
- -------- -----------
<S> <C> <C>
COMMON STOCK (CONTINUED)

CONSUMER GOODS & SERVICES--3.04%
800 Colgate-Palmolive....................... $ 48,000
1,400 Conagra................................. 43,225
1,200 Gillette................................ 88,200
1,200 Kellogg................................. 68,250
900 Newell.................................. 19,350
3,800 Proctor & Gamble........................ 237,500
2,700 Sara Lee................................ 65,813
200 Stanley Works........................... 7,150
-----------
577,488
-----------
CRUDE PETROLEUM & NATURAL GAS--4.70%
2,800 Amoco................................... 170,100
900 Atlantic Richfield...................... 93,150
700 Burlington Resources.................... 25,025
6,900 Exxon................................... 416,537
900 Tenneco................................. 34,988
1,400 Texaco.................................. 86,975
400 USX-Marathon Group...................... 28,800
1,400 Unocal.................................. 37,275
-----------
892,850
-----------
DRUGS--6.10%
4,500 Abbott Laboratories..................... 143,438
400 Allergan Pharmaceuticals................ 12,050
500 Alza Corp.*............................. 9,625
1,700 American Home Products.................. 110,713
700 Amgen*.................................. 40,863
2,800 Bristol-Myers Squibb.................... 161,700
1,600 Eli Lilly & Co.......................... 100,200
7,000 Merck & Co.............................. 260,750
1,700 Pfizer.................................. 131,538
1,100 Schering-Plough......................... 82,363
1,000 Upjohn.................................. 32,125
500 W.R. Grace & Co......................... 18,500
700 Warner Lambert.......................... 54,163
-----------
1,158,028
-----------
ELECTRICAL EQUIPMENT--3.64%
500 Advanced Micro Devices.................. 12,625
3,100 Ameritech............................... 122,450
600 AMP..................................... 43,350
500 Black & Decker.......................... 12,000
1,500 Cisco Systems........................... 48,375
ELECTRICAL EQUIPMENT-- (CONTINUED)
1,200 Emerson Electric........................ $ 70,800
300 Grainger WW............................. 15,563
200 Handleman............................... 2,300
2,300 Intel................................... 145,188
200 Johnson Controls........................ 9,700
500 Loral................................... 19,813
100 M A Communications*..................... 625
600 Medtronic............................... 31,800
100 Millipore............................... 4,788
700 National Semiconductor.................. 12,863
300 National Service Industries............. 7,650
200 Ogden................................... 3,950
100 Outboard Marine......................... 1,863
800 Raytheon Co............................. 50,300
500 Texas Instruments....................... 37,750
100 Thomas & Betts.......................... 6,625
200 Trinova................................. 5,925
2,000 Westinghouse Electric................... 25,500
-----------
691,803
-----------
ELECTRIC SERVICES--2.71%
1,000 American Electric Power................. 33,000
900 Carolina Power & Light.................. 24,075
1,000 Central & South West.................... 23,375
809 Cinergy................................. 18,005
800 Detroit Edison.......................... 21,400
1,100 Duke Power.............................. 44,825
1,100 FPL Group............................... 38,913
700 Houston Industries...................... 23,800
800 Niagara Mohawk Power.................... 11,100
900 Ohio Edison............................. 16,650
1,600 Pacificorp.............................. 29,600
1,200 Peco Energy............................. 28,950
2,500 SCE..................................... 35,000
3,600 Southern................................ 74,700
1,300 Texas Utilities......................... 42,413
1,200 Unicom Corporation...................... 28,050
600 Union Electric.......................... 21,525
-----------
515,381
-----------
ENERGY--0.39%
1,400 Enron................................... 37,800
400 Enserch................................. 5,050
</TABLE>

SEE NOTES TO FINANCIAL STATEMENTS.

11
<PAGE>
ST. JAMES PORTFOLIOS
SCHEDULE OF INVESTMENTS
NOVEMBER 30, 1994 (UNAUDITED)

EQUITY MARKET PORTFOLIO (CONTINUED)
<TABLE>
<CAPTION>

SHARES VALUE
- -------- -----------
<S> <C> <C>

COMMON STOCK (CONTINUED)

ENERGY--(CONTINUED)
1,300 Entergy................................. $ 29,250
700 Maxus Energy*........................... 2,625
-----------
74,725
-----------
ENGINES & TURBINES--0.12%
500 Brunswick............................... 8,625
200 Cummins Engine.......................... 8,700
300 Teledyne*............................... 5,175
-----------
22,500
-----------
ENVIRONMENTAL MANAGEMENT--0.53%
1,100 Browning Ferris Industries.............. 29,700
300 Rollins Environmental Services*......... 1,425
2,700 WMX Technologies........................ 69,525
-----------
100,650
-----------
FINANCE--2.61%
2,800 American Express........................ 82,950
200 Asarco.................................. 5,475
500 Barnett Banks........................... 19,688
600 Boatmens Bancshares..................... 16,725
1,000 Dean Witter Discover & Co............... 35,000
1,500 Federal National Mortgage Assoc......... 106,688
1,000 Federal Home Loan Mortgage.............. 49,875
400 First Fidelity Bancorporation........... 18,000
500 General RE.............................. 58,688
800 MBNA.................................... 18,900
1,100 Merrill Lynch & Co...................... 41,800
600 Salomon................................. 21,750
500 USF&G................................... 6,813
300 Western Atlas*.......................... 13,088
-----------
495,440
-----------
FOOD & BEVERAGES--7.77%
1,500 Anheuser Busch.......................... 73,688
1,925 Archer Daniels Midland.................. 53,178
800 Borden.................................. 11,200
400 Brown Forman............................ 11,950
1,400 Campbell Soup........................... 60,200
7,200 Coca-Cola............................... 368,100
200 Coors................................... 3,150
800 CPC International....................... 41,000
900 General Mills........................... 48,375
FOOD & BEVERAGES--(CONTINUED)
400 Harcourt General........................ $ 14,350
1,400 Heinz H J............................... 50,925
500 Hershey Foods........................... 23,375
4,400 Pepsico................................. 155,650
600 Pet..................................... 10,125
4,900 Philip Morris Cos....................... 292,775
400 Quaker Oats............................. 24,350
600 Ralston-Purina.......................... 25,725
2,100 Seagrams................................ 61,163
900 Unilever ADR............................ 100,463
600 Wendys International.................... 8,400
600 Whitman................................. 9,525
600 Wrigley WM Jr........................... 28,050
-----------
1,475,717
-----------
FOREST PRODUCTS--1.77%
300 Bemis................................... 6,638
200 Boise Cascade........................... 4,850
500 Champion International.................. 17,375
200 Federal Paper Board..................... 5,425
500 Georgia Pacific......................... 35,750
700 International Paper..................... 50,050
500 James River Corp. of VA................. 10,563
900 Kimberly Clark.......................... 45,113
600 Louisiana Pacific....................... 16,800
300 Mead.................................... 13,725
200 Potlatch................................ 7,500
400 Scott Paper............................. 26,100
500 Stone Container*........................ 8,188
300 Temple Inland........................... 13,463
400 Union Camp.............................. 18,550
400 Westvaco................................ 13,750
1,100 Weyerhauser............................. 42,213
-----------
336,053
-----------
GENERAL BUILDING CONTRACTORS--0.41%
200 Armstrong World Industries.............. 8,000
200 Centex.................................. 4,075
500 Flour................................... 21,438
200 Kaufman & Broad Home.................... 2,550
900 Masco................................... 20,025
200 Pulte Corporation....................... 4,025
</TABLE>

SEE NOTES TO FINANCIAL STATEMENTS.

12
<PAGE>
ST. JAMES PORTFOLIOS
SCHEDULE OF INVESTMENTS
NOVEMBER 30, 1994 (UNAUDITED)

EQUITY MARKET PORTFOLIO (CONTINUED)
<TABLE>
<CAPTION>

SHARES VALUE
- -------- -----------
<S> <C> <C>

COMMON STOCK (CONTINUED)

GENERAL BUILDING CONTRACTORS--
(CONTINUED)
400 Tyco Lab................................ $ 18,400
-----------
78,513
-----------
GROCERIES--0.79%
1,400 Albertsons.............................. 40,250
800 American Stores......................... 21,100
400 Bruno's................................. 3,500
200 Fleming................................. 4,600
300 Giant Food.............................. 6,713
200 Great Atlantic & Pacific Tea............ 4,450
600 Kroger*................................. 14,475
400 Super Valu.............................. 9,800
1,000 Sysco................................... 25,750
400 Winn Dixie Stores....................... 20,150
-----------
150,788
-----------
HEALTH CARE--2.59%
1,600 Baxter International.................... 41,200
400 Becton Dickinson........................ 18,900
500 Beverly Enterprises*.................... 7,063
600 Biomet*................................. 7,350
300 C.R. Bard............................... 7,800
2,000 Columbia/HCA Healthcare................. 75,750
200 Community Psychiatric Centers........... 2,000
3,600 Johnson & Johnson....................... 192,150
400 Mallinckrodt Group...................... 12,000
300 Manor Care.............................. 8,513
900 National Medical Enterprises............ 12,713
300 St. Jude Medical........................ 11,963
1,000 United Healthcare....................... 47,500
300 United States Surgical.................. 6,525
900 US Health Care.......................... 40,275
-----------
491,702
-----------
HOUSEHOLD APPLIANCES & FURNITURE--0.23%
100 Bassett Furniture Industries............ 2,850
100 Clark Equipment*........................ 5,513
600 Maytag.................................. 8,925
100 Springs Industries...................... 3,713
400 Whirlpool............................... 19,950
HOUSEHOLD APPLIANCES &
FURNITURE--(CONTINUED)
200 Zenith Electronics*..................... $ 2,450
-----------
43,401
-----------
INDUSTRIAL MACHINERY--0.66%
200 Cincinnati Milacron..................... 4,775
600 Cooper Industries....................... 20,850
500 Deere................................... 32,125
200 Giddings & Lewis........................ 2,850
600 Ingersoll Rand.......................... 19,350
600 Pall.................................... 10,650
300 Parker-Hannifin......................... 13,162
200 Raychem................................. 6,925
500 Service Corp. International............. 12,813
100 SPX..................................... 1,550
-----------
125,050
-----------
INSURANCE--2.75%
600 Aetna Life & Casualty................... 26,850
200 Alexander & Alexander Services.......... 3,775
1,200 American General........................ 31,500
1,800 American International Group............ 164,925
500 Chubb................................... 35,125
400 Cigna................................... 25,350
300 Continental............................. 4,350
300 Jefferson Pilot......................... 15,188
500 Lincoln National........................ 19,438
400 Marsh & McLennan........................ 28,850
600 Providian............................... 18,150
400 Safeco.................................. 19,675
500 St. Paul................................ 20,625
400 Torchmark............................... 13,250
400 Transamerica............................ 18,950
1,800 Travelers............................... 59,175
400 Unum.................................... 14,600
100 USLife.................................. 3,225
-----------
523,001
-----------
LODGING--0.30%
300 Bally Entertainment*.................... 1,763
300 Hilton Hotels........................... 20,850
700 Marriott International.................. 18,375
</TABLE>

SEE NOTES TO FINANCIAL STATEMENTS.

13
<PAGE>
ST. JAMES PORTFOLIOS
SCHEDULE OF INVESTMENTS
NOVEMBER 30, 1994 (UNAUDITED)

EQUITY MARKET PORTFOLIO (CONTINUED)
<TABLE>
<CAPTION>

SHARES VALUE
- -------- -----------
<S> <C> <C>

COMMON STOCK (CONTINUED)

LODGING--(CONTINUED)
600 Promus Company*......................... $ 16,650
-----------
57,638
-----------
METALS & MINING--2.24%
1,200 Alcan Aluminum.......................... 29,700
16,800 Alco Standard........................... 16,800
500 Aluminum Co. of America................. 40,812
2,000 American Barrick Resources.............. 41,750
300 Avery Dennison.......................... 9,675
500 Cyprus Amax Minerals.................... 12,500
600 Echo Bay Mines.......................... 6,225
500 Engelhard............................... 11,000
800 Homestake Mining........................ 13,500
700 Inco.................................... 19,250
2,400 Minnesota Mining & Mfg.................. 123,000
5,213 Nacco Industries Class A................ 5,213
500 Newmont Mining.......................... 18,313
400 Phelps Dodge............................ 22,900
1,300 Placer Dome............................. 24,375
300 Reynolds Metals......................... 14,137
740 Santa Fe Pacific Gold*.................. 9,343
200 Timken.................................. 6,450
-----------
424,943
-----------
OIL & GAS--2.12%
300 Columbia Gas System..................... 7,388
500 Consolidated Natural Gas................ 17,500
1,060 Dresser Industries...................... 20,000
100 Eastern Enterprises..................... 2,550
100 Helmerich & Payne....................... 2,800
300 McDermott International................. 7,125
2,200 Mobil................................... 187,550
300 Nicor................................... 6,750
700 Noram Energy............................ 3,938
100 Oneok................................... 1,725
500 Pacific Enterprises..................... 10,688
700 Panhandle Eastern....................... 14,788
200 Peoples Energy.......................... 4,900
500 Rowan Cos*.............................. 3,313
500 Santa Fe Energy Resources............... 4,188
1,400 Schlumberger............................ 74,375
500 Sonat................................... 14,063
200 Transco Energy.......................... 2,500
OIL & GAS--(CONTINUED)
600 Williams Companies...................... $ 16,950
-----------
403,091
-----------
PERSONAL SERVICES--0.27%
300 Beneficial.............................. 10,950
500 Household International................. 19,250
600 H&R Block............................... 20,775
-----------
50,975
-----------
PETROLEUM REFINING--3.55%
500 Amerada Hess............................ 22,750
300 Ashland Oil............................. 10,200
3,600 Chevron................................. 157,050
600 Coastal................................. 15,450
300 Kerr-McGee.............................. 14,175
200 Lousiana Land & Exploration CP.......... 8,200
1,700 Occidental Petroleum.................... 33,363
500 Oryx Energy Company*.................... 6,063
300 Pennzoil................................ 14,513
1,500 Phillips Petroleum...................... 49,500
3,000 Royal Dutch Petroleum................... 325,875
600 Sun..................................... 17,475
-----------
674,614
-----------
PRINTING & PUBLISHING--1.71%
400 American Greetings...................... 11,100
600 Dow Jones & Co.......................... 17,400
900 Dun & Bradstreet........................ 47,588
800 Gannett Co.............................. 37,900
200 Harland J H............................. 3,950
300 Jostens................................. 5,175
300 Knight-Ridder........................... 14,438
300 McGraw-Hill............................. 20,363
100 Meredith................................ 4,812
600 Moore................................... 10,275
600 New York Times.......................... 14,250
900 RR Donnelley............................ 25,763
700 Times Mirror............................ 21,612
2,100 Time Warner............................. 70,875
400 Tribune................................. 20,050
-----------
325,551
-----------
</TABLE>

SEE NOTES TO FINANCIAL STATEMENTS.

14
<PAGE>
ST. JAMES PORTFOLIOS
SCHEDULE OF INVESTMENTS
NOVEMBER 30, 1994 (UNAUDITED)

EQUITY MARKET PORTFOLIO (CONTINUED)
<TABLE>
<CAPTION>

SHARES VALUE
- -------- -----------
<S> <C> <C>

COMMON STOCK (CONTINUED)

RADIO & TELEVISION BROADCASTING--1.72%
900 Capital Cities/ABC...................... $ 73,575
360 CBS..................................... 19,980
1,300 Comcast................................. 20,638
3,000 Disney Company.......................... 130,875
200 Kingworld Productions*.................. 6,975
1,952 Viacom Inc. Class B*.................... 75,114
-----------
327,157
-----------
RAILROADS--1.07%
500 Burlington Northern..................... 24,375
400 Conrail................................. 20,800
600 CSX..................................... 41,700
800 Norfolk Southern........................ 48,400
1,000 Santa Fe Southern Pacific............... 16,750
1,100 Union Pacific........................... 51,150
-----------
203,175
-----------
RETAIL--5.40%
600 Charming Shoppes........................ 4,050
500 Circuit City Stores..................... 12,313
400 Dayton-Hudson........................... 32,650
600 Dillard Dept. Stores.................... 16,875
700 FW Woolworth............................ 9,888
800 Gap Stores.............................. 28,200
500 Hasbro.................................. 14,750
2,500 Home Depot.............................. 115,625
1,300 J.C. Penney............................. 59,800
2,500 K-Mart.................................. 36,250
2,000 Limited Stores.......................... 38,750
900 Lowes Co's.............................. 33,638
1,000 Mattel.................................. 26,750
1,400 May Department Stores................... 50,750
200 Mercantile Stores....................... 8,100
500 Nordstrom............................... 24,125
1,200 Price/Costco*........................... 18,450
500 Rite Aid................................ 11,315
2,000 Sears Roebuck........................... 94,500
400 TJX..................................... 6,050
1,600 Toys R Us*.............................. 58,600
12,800 Wal-Mart Stores......................... 296,000
700 Walgreen................................ 29,050
-----------
1,026,479
-----------
RESTAURANTS--0.62%
100 Luby's Cafeteria........................ $ 2,200
3,900 McDonald's.............................. 110,663
300 Ryans Family Steak House................ 2,100
200 Shoneys*................................ 2,750
-----------
117,713
-----------
RUBBER & PLASTIC PRODUCTS--0.25%
100 BF Goodrich............................. 4,450
400 Premark International................... 18,200
900 Rubbermaid.............................. 24,300
-----------
46,950
-----------
SCIENTIFIC EQUIPMENT--0.14%
300 EG&G.................................... 4,425
300 General Signal.......................... 9,675
200 Perkin Elmer............................ 5,525
200 Tektronix............................... 7,475
-----------
27,100
-----------
SPECIALTY CONSUMER PRODUCTS--1.67%
200 Alberto Culver Class B.................. 5,125
1,100 American Brands......................... 38,913
400 Avon Products........................... 24,750
300 Bausch & Lomb........................... 10,013
100 Brown Group............................. 3,175
300 Clorox.................................. 17,475
1,200 Corning................................. 36,000
1,900 Eastman Kodak........................... 86,688
100 Longs Drugstores........................ 3,138
600 Melville................................ 18,900
400 Nike.................................... 25,550
300 Polaroid................................ 9,413
500 Reebok International.................... 19,187
500 Sherwin Williams........................ 15,375
300 Stride Rite............................. 3,713
-----------
317,415
-----------
SPECIALIZED SERVICES--0.52%
500 Crown Cork & Seal....................... 18,875
400 Ecolab.................................. 8,150
300 Federal Express*........................ 17,063
400 Interpublic Group....................... 12,650
200 National Education...................... 825
500 Pioneer Hi-Bred International........... 17,000

</TABLE>

SEE NOTES TO FINANCIAL STATEMENTS.

15
<PAGE>
ST. JAMES PORTFOLIOS
SCHEDULE OF INVESTMENTS
NOVEMBER 30, 1994 (UNAUDITED)

EQUITY MARKET PORTFOLIO (CONTINUED)

SHARES VALUE
- -------- -----------
<S> <C> <C>

COMMON STOCK (CONTINUED)

SPECIALIZED SERVICES--(CONTINUED)
400 Ryder System............................ $ 8,650
300 Safety Kleen............................ 4,350
100 Shared Medical.......................... 3,013
100 Skyline................................. 1,850
200 Yellow Corporation...................... 3,925
100 Zurn Industries......................... 1,750
-----------
98,101
-----------
STEEL--0.41%
600 Armco*.................................. 3,675
600 Bethlehem Steel*........................ 10,650
200 Crane Company........................... 5,200
200 Inland Steel Industries................. 6,550
500 Nucor................................... 27,250
400 USX-US Steel Group...................... 13,750
500 Worthington Industries.................. 10,000
-----------
77,075
-----------
TRANSPORTATION SERVICES--0.27%
400 AMR Corp.-Del........................... 20,300
200 Consolidated Freightway................. 3,875
500 Dial Corporation........................ 10,000
200 Pittston Services....................... 4,750
TRANSPORTATION SERVICES-- (CONTINUED)
200 Roadway Services........................ $ 10,100
-----------
49,025
-----------
UTILITIES--1.05%
800 Baltimore Gas & Electric................ 18,100
1,300 Consolidated Edison NYC................. 33,638
9,000 Dominion Resources...................... 33,413
400 Northern States Power................... 18,050
2,400 Pacific Gas & Electric.................. 57,300
1,400 Public Svs. Ent Group................... 37,275
-----------
197,776
-----------
TOTAL COMMON STOCK................................ 18,438,025
-----------
SHORT TERM INVESTMENTS--2.28%
433,047 Harris Trust & Savings Bank, 5.34%, due
12/01/09.............................. 433,047
-----------
TOTAL INVESTMENTS--99.36%
(Cost $18,733,222).............................. 18,871,072
OTHER ASSETS AND LIABILITIES (NET)--0.64%......... 120,493
-----------
TOTAL NET ASSETS--100%............................ $18,991,565
-----------
-----------
<FN>
- --------------------------
*Non-income producing security.
- --------------------------
</FN>
</TABLE>

SCHEDULE OF FINANCIAL FUTURES
NOVEMBER 30, 1994 (UNAUDITED)

<TABLE>
<CAPTION>
MARKET VALUE UNREALIZED
NUMBER OF COVERED BY (DEPRECIATION)
CONTRACTS CONTRACTS EXPIRATION AT 11/30/94
----------------- ------------- -------------- ---------------
<S> <C> <C> <C> <C>
Standard & Poor's 500 (Long)............................. 2 $ 453,950 December 94 $ (365)
</TABLE>

SEE NOTES TO FINANCIAL STATEMENTS.

16
<PAGE>
ST. JAMES PORTFOLIOS
SCHEDULE OF INVESTMENTS
NOVEMBER 30, 1994 (UNAUDITED)

BOND MARKET PORTFOLIO
<TABLE>
<CAPTION>

PRINCIPAL
AMOUNT VALUE
- ---------- -----------
<S> <C> <C>

ASSET-BACKED SECURITIES--1.36%
$ 300,000 Premier Auto Trust, 6.35%, 5/2/00....... $ 290,250
-----------
BANKS--0.43%
110,000 Bank of Boston, 6.625%, 12/1/5.......... 92,086
-----------
RETAIL--0.66%
150,000 J.C. Penney, 7.375%, 6/15/04............ 140,223
-----------
UNITED STATES MORTGAGE BACKED
SECURITIES--18.62%
Federal Home Loan Mortgage Association
361,543 7.00%, due 5/1/24..................... 327,309
361,075 7.00%, due 6/1/24..................... 326,885
Federal National Mortgage Association
361,017 7.00%, due 6/1/09..................... 338,904
572,218 8.50%, due 8/1/23..................... 561,129
463,864 7.00%, due 5/1/24..................... 419,217
422,002 7.00%, due 6/1/24..................... 381,384
Government National Mortgage Association
288,520 9.50%, due 1/15/19.................... 297,888
296,326 9.50%, due 10/15/20................... 305,586
497,162 7.50%, due 6/15/24.................... 457,698
596,650 7.50%, due 6/15/24.................... 549,288
-----------
Total United States Mortgage Backed
Securities............................ 3,965,288
-----------
UNITED STATES AGENCY SECURITIES--2.68%
Federal Home Loan Mortgage Association
200,000 7.23%, due 12/17/02................... 187,818
381,337 9.00%, due 4/1/22..................... 383,838
-----------
Total United States Agency Securities... 571,656
-----------

UNITED STATES GOVERNMENT
SECURITIES--70.15%
United States Treasury Note
$2,705,000 7.875%, due 12/15/96.................. $ 2,726,559
1,730,000 6.250%, due 2/15/03................... 1,559,439
2,545,000 6.500%, due 5/15/97................... 2,485,752
825,000 6.500%, due 8/15/97................... 803,344
1,500,000 7.125%, due 10/15/98.................. 1,470,465
1,650,000 8.875%, due 5/15/00................... 1,728,111
1,280,000 7.500%, due 5/15/02................... 1,256,397
500,000 7.250%, due 5/15/04................... 477,655
United States Treasury Bond
245,000 9.375%, due 2/15/06................... 270,458
2,360,000 7.250%, due 5/15/16................... 2,157,182
-----------
Total United States Government
Securities............................ 14,935,362
-----------
SHORT TERM INVESTMENTS--4.97%
1,059,296 Harris Trust & Savings Bank, 5.34%, due
12/1/94............................... 1,059,296
-----------
TOTAL INVESTMENTS--98.87%
(Cost $21,650,707)................................ $21,054,161
OTHER ASSETS AND LIABILITIES (NET)--1.13%........... 240,376
-----------
TOTAL NET ASSETS--100.00%........................... $21,294,537
-----------
-----------
</TABLE>

SEE NOTES TO FINANCIAL STATEMENTS.

17
<PAGE>
ST. JAMES PORTFOLIOS
SCHEDULE OF INVESTMENTS
NOVEMBER 30, 1994 (UNAUDITED)

SMALL CAP PORTFOLIO
<TABLE>
<CAPTION>

SHARES VALUE
- -------- -----------
<S> <C> <C>

COMMON STOCK--95.18%

AMUSEMENT & RECREATION SERVICES--2.13%
2,400 Carmike Cinemas*........................ $ 54,000
2,400 Grand Casinos*.......................... 33,600
1,500 Harman International.................... 51,750
9,700 Roadmaster*............................. 39,406
4,400 Showboat................................ 53,900
2,300 WMS..................................... 39,963
-----------
272,619
-----------
APPAREL--0.51%
2,800 Kellwood................................ 57,400
300 Oxford Industries....................... 8,550
-----------
65,950
-----------
BANKING--5.01%
1,900 Centura Banks........................... 40,850
2,849 Fleet Financial Group................... 88,675
6,500 Legg Mason.............................. 140,563
4,400 PHH..................................... 154,550
11,300 Premier Bancorp*........................ 182,213
1,700 Union Planters.......................... 35,063
-----------
641,914
-----------
COMPUTER & OFFICE EQUIPMENT--5.87%
2,650 American Management Systems............. 44,719
2,800 AST Research............................ 42,350
3,600 Banctec*................................ 78,300
5,500 Cray Research*.......................... 101,063
2,700 Exabyte*................................ 57,038
4,900 Inacom Corporation...................... 48,388
2,200 Komag*.................................. 53,900
3,600 Logicon................................. 107,100
6,800 Merisel*................................ 58,650
4,300 Nu-Kote Holding*........................ 94,600
2,400 Oak Industries*......................... 66,900
-----------
753,008
-----------
CONSTRUCTION & MATERIALS--3.51%
1,400 Champion Enterprises*................... 39,725
3,000 CMAC Investment......................... 82,500
6,000 Continental Homes Holding............... 81,750
1,900 Elcor................................... 28,500
800 Fibreboard*............................. 22,900
CONSTRUCTION & MATERIALS-- (CONTINUED)
2,700 Offshore Pipelines*..................... $ 55,688
3,600 Payless Cashways........................ 31,500
1,500 Pope and Talbot......................... 24,188
3,000 Pulte................................... 60,375
2,400 Toll Brothers........................... 22,800
-----------
449,926
-----------
DEFENSE--2.58%
4,200 Alliant Techsystems..................... 148,575
900 Sturm, Ruger & Company.................. 24,525
5,900 Thiokol................................. 157,088
-----------
330,188
-----------
ELECTRIC MACHINERY--1.05%
1,300 Agco Corporation........................ 59,313
1,200 Ogden Projects.......................... 19,800
3,200 Scotsman Industries..................... 55,200
-----------
134,313
-----------
ELECTRIC UTILITIES--1.65%
2,500 Commonwealth Energy Systems............. 89,375
8,700 Destec Energy*.......................... 87,000
2,200 Southwestern Energy Company............. 34,925
-----------
211,300
-----------
ELECTRONIC GOODS & ACCESSORIES--10.00%
1,750 Arrow Electronics*...................... 63,656
12,600 Audiovox*............................... 89,775
3,800 BMC Industries.......................... 57,000
5,000 Core Industries......................... 51,250
2,000 Dallas Semiconductor*................... 28,250
6,100 Handleman............................... 70,150
4,500 Kulicke & Soffa*........................ 91,125
3,500 Marshall Industries..................... 87,938
500 Park Electrochemical.................... 15,500
5,800 Recognition Equipment*.................. 42,775
1,700 Rex Stores.............................. 28,688
3,500 SCI Systems............................. 64,750
4,100 Standard Microsystems*.................. 97,888
5,200 Tech-Sym................................ 113,750
2,600 Vivra................................... 74,401
2,600 VLSI Technology......................... 30,550
</TABLE>

SEE NOTES TO FINANCIAL STATEMENTS.

18
<PAGE>
ST. JAMES PORTFOLIOS
SCHEDULE OF INVESTMENTS
NOVEMBER 30, 1994 (UNAUDITED)

SMALL CAP PORTFOLIO (CONTINUED)
<TABLE>
<CAPTION>

SHARES VALUE
- -------- -----------
<S> <C> <C>

COMMON STOCK (CONTINUED)

ELECTRONIC GOODS & ACCESSORIES--
(CONTINUED)
9,500 Western Digital*........................ $ 175,750
4,100 Windmere................................ 39,975
3,200 Wyle Laboratories....................... 59,600
-----------
1,282,771
-----------
FINANCE SERVICES--16.14%
4,400 Albank Financial........................ 94,600
6,200 American Bankers Insurance Group........ 122,450
1,400 American Savings of Florida FSB*........ 22,488
6,100 Centerbank.............................. 61,763
4,900 Charter One Financial................... 91,875
5,400 Collective Bancorp...................... 95,850
4,500 Commercial Federal*..................... 88,313
2,900 Duff & Phelps........................... 32,263
967 Duff & Phelps Credit Rating............. 8,700
4,400 Enhance Financial Service Group......... 74,800
9,500 Fidelity National Financial............. 103,313
1,100 Fidelity New York FSB................... 31,213
1,000 Firstfed Michigan....................... 20,000
5,300 Foothill Group.......................... 80,825
3,900 Gartner Group........................... 132,600
7,800 Glendale Federal Bank FSB*.............. 71,175
900 Hamilton Bancorp........................ 22,950
3,600 JSB Financial........................... 83,250
2,100 ONBANcorp............................... 53,944
1,300 PEC Israel Economic..................... 33,638
2,600 Peoples Heritage Financial.............. 31,200
1,200 Pioneer Group........................... 55,500
5,100 Quick and Reilly Group.................. 126,225
12,700 Raymond James Financial................. 182,563
10,340 Republic Bancorp........................ 115,033
6,000 Roosevelt Financial Group............... 88,500
800 St. Francis Capital*.................... 11,600
3,600 TCF Financial Corporation............... 132,750
-----------
2,069,381
-----------
FOOD & BEVERAGES--1.69%
2,500 Buffets*................................ 22,813
1,600 Coca-Cola Bottling Company.............. 39,600
2,400 Hudson Foods............................ 54,300
5,200 Interstate Bakeries..................... 66,300
FOOD & BEVERAGES--(CONTINUED)
2,700 J&J Snack Foods......................... $ 33,075
-----------
216,088
-----------
HEALTH SERVICES & HOSPITAL
SUPPLIES--8.52%
500 Acclaim Entertainment................... 7,813
1,900 Bio-rad Laboratories*................... 52,725
2,300 Charter Medical*........................ 51,750
4,800 Continental Medical Systems............. 34,200
7,800 Employee Benefit Plans*................. 78,000
2,200 Grancare................................ 38,500
2,700 Haemonetics*............................ 52,650
3,000 Healthcare Services Group............... 35,250
6,200 Hillhaven*.............................. 131,750
2,000 Horizon Healthcare...................... 53,250
3,900 ICN Pharmaceuticals..................... 87,263
2,600 Nellcor*................................ 88,075
3,500 Playtex Products........................ 29,750
600 Regency Health Services*................ 6,975
1,100 Sci-Med Life Systems*................... 53,763
3,500 Sofamor/Denek Group*.................... 56,438
1,700 Sunrise Medical......................... 47,388
2,300 Surgical Care Affiliates................ 44,275
2,700 Universal Health Services*.............. 67,500
2,750 Vencor.................................. 74,594
-----------
1,091,909
-----------
HOME FURNISHING--0.51%
900 Bush Industries......................... 17,888
700 Ethan Allen Interiors*.................. 15,838
4,100 Pier 1 Imports.......................... 32,288
-----------
66,014
-----------
INSURANCE--5.75%
2,900 American Travellers*.................... 48,575
5,100 Capital RE.............................. 114,750
2,500 CCP Insurance........................... 36,875
4,500 Fremont General......................... 104,063
2,300 Liberty................................. 58,650
3,500 Life RE................................. 60,375
3,900 Orion Capital........................... 124,800
16,200 Presidential Life....................... 81,000
1,300 Protective Life......................... 56,550
</TABLE>

SEE NOTES TO FINANCIAL STATEMENTS.

19
<PAGE>
ST. JAMES PORTFOLIOS
SCHEDULE OF INVESTMENTS
NOVEMBER 30, 1994 (UNAUDITED)

SMALL CAP PORTFOLIO (CONTINUED)
<TABLE>
<CAPTION>

SHARES VALUE
- -------- -----------
<S> <C> <C>

COMMON STOCK (CONTINUED)

INSURANCE--(CONTINUED)
1,700 United Cos Financial.................... $ 51,425
-----------
737,063
-----------
METALS & MINING--4.20%
2,100 Amcast Industrial....................... 42,525
4,000 Astec Industries*....................... 52,000
3,700 Cleveland-Cliffs........................ 129,963
2,500 Commercial Metals....................... 62,500
4,900 J&L Specialty Steel..................... 82,688
2,600 Material Sciences....................... 37,050
1,600 Mueller Industries*..................... 47,800
400 Rouge Steel Company..................... 10,500
6,700 Terra Industries........................ 72,863
-----------
537,889
-----------
MOTOR VEHICLES & EQUIPMENT--2.92%
3,100 Allen Group............................. 74,400
6,500 Coachman Industries..................... 94,250
5,700 Gencorp................................. 59,138
2,600 Standard Motor Products................. 47,450
1,400 Standard Products....................... 31,150
3,400 TBC..................................... 31,025
1,400 Titan Wheel International............... 36,400
-----------
373,813
-----------
OIL & GAS SERVICES--5.01%
2,300 Camco International..................... 43,700
3,200 Energen................................. 64,000
2,100 Hornbeck Offshore Services.............. 26,775
3,500 KCS Energy.............................. 50,750
6,600 Oceaneering International*.............. 77,550
1,400 Phoenix Resources....................... 56,175
1,300 Production Operators.................... 27,950
7,700 Reading & Bates*........................ 45,238
1,000 Seitel*................................. 23,125
3,000 Sonat Offshore Drilling................. 58,500
4,700 Tatham Offshore*........................ 55,519
11,200 UNC*.................................... 56,000
6,200 Weatherford International............... 57,350
-----------
642,632
-----------
REAL ESTATE INVESTMENT TRUST--3.10%
1,800 Holly Residential Properties............ $ 24,750
2,300 Macerich................................ 45,425
1,700 National Golf Properties................ 30,813
4,900 ROC Communities......................... 94,938
3,300 Storage USA............................. 83,325
1,400 Tanger Factory Outlet Centers........... 30,975
4,900 Walden Residential Props................ 87,588
-----------
397,814
-----------
RESTAURANTS--1.64%
2,200 Luby's Cafeteria........................ 48,400
14,700 Ryans Family Steak House*............... 102,900
2,650 Sbarro.................................. 59,294
-----------
210,594
-----------
RETAIL--6.10%
2,400 Baker J................................. 39,300
1,500 Blair Corporation....................... 61,313
2,500 Bradlees................................ 34,375
1,500 Caldor*................................. 43,688
3,000 Carson Pirie Scott & Company............ 56,250
5,700 Chic by HIS*............................ 62,700
6,600 Claire's Stores......................... 83,325
700 Consolidated Stores*.................... 12,250
4,800 Dress Barn*............................. 48,600
2,500 Duty Free International................. 30,313
2,200 Paragon Trade Brands*................... 41,250
1,400 Ross Stores............................. 19,250
6,000 Shopko Stores........................... 60,000
6,200 Value City Department Stores............ 72,075
5,800 Venture Stores.......................... 73,225
2,400 Xircom*................................. 43,800
-----------
781,714
-----------
SPECIALIZED SERVICES--2.58%
2,500 American President...................... 55,625
4,800 Bowne................................... 77,400
3,600 Dames & Moore........................... 48,600
2,300 Enterra*................................ 45,425
2,700 Monk-Austin*............................ 36,450
2,800 Rollins Truck Leasing................... 32,200
</TABLE>

SEE NOTES TO FINANCIAL STATEMENTS.

20
<PAGE>
ST. JAMES PORTFOLIOS
SCHEDULE OF INVESTMENTS
NOVEMBER 30, 1994 (UNAUDITED)

SMALL CAP PORTFOLIO (CONTINUED)
<TABLE>
<CAPTION>

SHARES VALUE
- -------- -----------
<S> <C> <C>

COMMON STOCK (CONTINUED)

SPECIALIZED SERVICES--(CONTINUED)
2,900 USA Waste Services...................... $ 34,800
-----------
330,500
-----------
SPECIALTY CONSUMER PRODUCTS--2.50%
1,500 Alberto Culver Cl B..................... 38,438
1,200 First Mississippi....................... 26,550
3,800 Oneida.................................. 49,400
2,800 SLM International*...................... 10,850
11,900 Topp.................................... 71,400
4,300 Universal Corporation................... 92,450
1,100 Vigoro.................................. 31,900
-----------
320,988
-----------
TEXTILES--2.21%
11,800 Cone Mills*............................. 141,600
3,900 Guilford Mills.......................... 78,488
TEXTILES--(CONTINUED)
2,800 McWhorter Technologies*................. $ 47,950
400 Springs Industries...................... 14,850
-----------
282,888
-----------
TOTAL COMMON STOCK................................ 12,201,276
-----------
SHORT-TERM INVESTMENTS--4.46%
571,881 Harris Trust & Savings Bank, 5.34%, due
12/01/94.............................. 571,881
-----------
TOTAL INVESTMENTS--99.64%
(Cost $12,997,893).............................. 12,773,157
OTHER ASSETS AND LIABILITIES (NET)--0.36%......... 46,274
-----------
TOTAL NET ASSETS--100%............................ $12,819,431
-----------
-----------
</TABLE>

SEE NOTES TO FINANCIAL STATEMENTS.

21
<PAGE>
ST. JAMES PORTFOLIOS
SCHEDULE OF INVESTMENTS
NOVEMBER 30, 1994 (UNAUDITED)

BALANCED PORTFOLIO
<TABLE>
<CAPTION>

SHARES VALUE
- ---------- -----------
<S> <C> <C>

COMMON STOCK--42.45%

AIRLINES--0.50%
5,800 AMR*.................................... $ 294,350
-----------
AEROSPACE--0.48%
6,000 Textron................................. 282,000
-----------
APPAREL & TEXTILES--1.23%
35,000 Burlington Industries................... 350,000
17,000 Haggar.................................. 365,500
-----------
715,500
-----------
AUTOMOTIVE--1.77%
38,000 Arkansas Best........................... 456,000
17,000 Goodyear Tire & Rubber.................. 575,875
-----------
1,031,875
-----------
BANKING--0.49%
15,000 Bay View Capital........................ 285,000
-----------
CHEMICAL--1.57%
10,000 Arco Chemical........................... 457,500
20,450 Hanna (MA).............................. 460,125
-----------
917,625
-----------
COMPUTER & OFFICE EQUIPMENT--4.52%
16,000 Apple Computer.......................... 596,000
24,900 Exar*................................... 529,125
10,000 Intel................................... 631,250
20,000 Standard Register....................... 340,000
5,500 Xerox................................... 540,375
-----------
2,636,750
-----------
DRUGS--2.98
9,600 Bristol-Myers Squibb.................... 554,400
10,000 Lilly (Eli)............................. 626,250
15,000 Merck................................... 558,750
-----------
1,739,400
-----------
ELECTRONICS--2.39%
35,000 Instrument Systems*..................... 293,125
21,000 Marshall Industries..................... 527,625
19,000 Philips Electronics N.V. ADR............ 574,750
-----------
1,395,500
-----------
ENERGY--6.11%
10,000 Exxon................................... 603,750
ENERGY--(CONTINUED)
15,700 Norsk Hydro ADR......................... $ 598,563
17,400 Repsol S.A. ADR......................... 502,425
5,000 Royal Dutch Petroleum................... 543,125
6,000 Texaco.................................. 372,750
25,800 Ultramar Corporation.................... 622,425
17,000 Valero Energy........................... 323,000
-----------
3,566,038
-----------
FINANCIAL SERVICES--5.29%
12,000 Exel Limited............................ 450,000
7,000 Federal National Mortgage Association... 497,875
5,300 Loews................................... 457,788
27,000 MBNA.................................... 637,875
40,000 National Auto Credit*................... 425,000
18,000 Student Loan Marketing Association...... 616,500
-----------
3,085,038
-----------
FOOD & BEVERAGES--2.21%
14,000 Nestle-Sponsored ADR.................... 649,173
13,000 Anheuser Busch.......................... 638,625
-----------
1,287,798
-----------
FORESTRY--2.12%
12,000 Weyerhauser............................. 460,500
29,000 Wickes Lumber*.......................... 355,250
10,000 Willamette Industries................... 423,750
-----------
1,239,500
-----------
LEASING--2.29%
27,250 Comdisco................................ 475,594
12,500 Gatx.................................... 500,000
33,000 Winthrop Resources...................... 363,000
-----------
1,338,594
-----------
MANUFACTURING--1.45%
18,500 BW/IP................................... 326,063
23 Consorcio G Grupo Dina ADR.............. 247
12,000 Tecumseh Products....................... 525,000
-----------
851,310
-----------
</TABLE>

SEE NOTES TO FINANCIAL STATEMENTS.

22
<PAGE>
ST. JAMES PORTFOLIOS
SCHEDULE OF INVESTMENTS
NOVEMBER 30, 1994 (UNAUDITED)

BALANCED PORTFOLIO (CONTINUED)
<TABLE>
<CAPTION>

SHARES VALUE
- ---------- -----------
<S> <C> <C>

COMMON STOCK (CONTINUED)

RAILROADS--1.84%
24,000 Chicago & North Western
Transportation*....................... $ 468,000
13,000 Union Pacific........................... 604,500
-----------
1,072,500
-----------
REAL ESTATE OPERATIONS & LESSORS--1.61%
30,000 Cali Realty............................. 468,750
38,000 Commercial Net Lease Realty............. 470,250
-----------
939,000
-----------
TOBACCO--1.96%
26,500 Hanson PLC ADR.......................... 483,625
11,000 Philip Morris Comp. Cos................. 657,250
-----------
1,140,875
-----------
UTILITIES--1.64%
16,000 Detroit Edison.......................... 428,000
10,000 Telefonos de Mexico ADR................. 530,000
-----------
958,000
-----------
TOTAL COMMON STOCK...................... 24,776,653
-----------
CONVERTIBLE PREFERRED STOCKS--2.38%
6,500 Burlington Northern $3.125 Series A..... 363,188
11,000 Delta Airlines, $3.50 Series C.......... 499,125
6,000 Ford Motor, 8.4%........................ 528,750
-----------
TOTAL CONVERTIBLE PREFERRED STOCKS...... 1,391,063
-----------

PRINCIPAL
AMOUNT
- ----------
CORPORATE BONDS--28.62%
AUTOMOTIVE--2.79%
$ 400,000 Ford Capital, 10.125%, 11/15/00......... 431,442
300,000 General Motors,
8.950%, 7/2/09........................ 300,000
1,000,000 General Motors,
7.000%, 6/15/03....................... 896,586
-----------
1,628,028
-----------
CORPORATE BONDS-- (CONTINUED)
BEVERAGES--3.04%
$1,600,000 Anheuser Busch,
8.500%, 3/01/17....................... $ 1,555,325
250,000 J. Seagram & Sons,
7.000%, 4/15/08....................... 215,938
-----------
1,771,263
-----------
BUSINESS EQUIPMENT & SERVICES--3.23%
1,000,000 Apple Computer,
6.500%, 2/15/04....................... 858,103
1,000,000 Xerox Corp., 9.200%, 7/15/99............ 1,025,773
-----------
1,883,876
-----------
ELECTRIC UTILITIES--0.87%
500,000 Potomac Edison,
9.250%, 6/1/19........................ 508,120
-----------
FINANCE--3.81%
700,000 American Express,
8.500%, 8/15/01....................... 702,405
1,050,000 Ford Motor Credit,
5.625%, 12/15/98...................... 955,004
600,000 Protective Life, 7.950%, 7/01/04........ 568,069
-----------
2,225,478
-----------
FINANCIAL SERVICES--6.11%
1,875,000 Bear Stearns,
6.750%, 4/15/03....................... 1,629,448
1,125,000 Goldman Sachs 144A,**
8.000%, 3/01/13....................... 1,010,903
450,000 Merrill Lynch, 6.375%, 3/30/99.......... 419,787
500,000 Morgan Stanley,
8.875%, 10/15/01...................... 505,247
-----------
3,565,385
-----------
FOOD--0.83%
500,000 Kraft, 8.500%, 2/15/17.................. 483,815
-----------
MANUFACTURING--0.77%
518,000 Consorcio G Grupo Dina,
8.000%, 8/08/04....................... 450,013
-----------
</TABLE>

SEE NOTES TO FINANCIAL STATEMENTS.

23
<PAGE>
ST. JAMES PORTFOLIOS
SCHEDULE OF INVESTMENTS
NOVEMBER 30, 1994 (UNAUDITED)

BALANCED PORTFOLIO (CONTINUED)
<TABLE>
<CAPTION>

PRINCIPAL
AMOUNT VALUE
- ---------- -----------
<S> <C> <C>

CORPORATE BONDS (CONTINUED)

OIL & GAS SERVICES--2.65%
$ 500,000 Occidental Petroleum, 9.750%, 6/15/01... $ 523,250
1,000,000 Occidental Petroleum, 9.625%, 7/01/99... 1,021,492
-----------
1,544,742
-----------
TELEPHONE UTILITIES--1.99%
1,350,000 New York Telephone, 6.250%, 2/15/04..... 1,159,815
-----------
TRANSPORTATION--2.53%
1,500,000 Union Pacific, 8.500%, 1/15/17.......... 1,474,238
-----------
TOTAL CORPORATE BONDS................... 16,694,773
-----------
UNITED STATES GOVERNMENT
OBLIGATIONS--22.12%
UNITED STATES TREASURY
SECURITIES--15.81%
United States Treasury Notes
1,465,000 4.750%, due 2/15/97................... 1,384,425
800,000 6.500%, due 5/15/97................... 781,749
1,150,000 6.750%, due 6/30/99................... 1,105,432
550,000 7.125%, due 9/30/99................... 535,563
1,800,000 6.00%, due 10/15/99................... 1,673,435
500,000 7.250%, due 5/15/04................... 478,906
United States Treasury Bonds
1,175,000 U.S. Treasury Bond, 8.250%, 5/15/05... 1,196,297
500,000 U.S. Treasury Bond, 7.625%, 2/15/07... 483,593
1,600,000 U.S. Treasury Bond, 7.875%,
11/15/07.............................. 1,586,498
-----------
9,225,898
-----------
UNITED STATES AGENCY OBLIGATIONS--6.31%
500,000 Farm Credit Financial Assistance Corp.,
9.200%, 9/27/00....................... 522,185
UNITED STATES AGENCY
OBLIGATIONS--(CONTINUED)
$ 600,000 Federal Farm Credit Bank, 8.250%,
5/01/07............................... $ 580,112
385,000 Federal Home Loan Mortgage, 6.840%,
3/02/09............................... 328,745
750,000 Federal National Mortgage, 7.800%,
2/21/07............................... 707,159
1,400,000 Student Loan Marketing Association,
8.800%, 11/15/04...................... 1,383,550
175,000 Tennessee Valley Authority, 6.875%,
1/15/02............................... 162,411
-----------
3,684,162
-----------
TOTAL UNITED STATES GOVERNMENT
OBLIGATIONS........................... 12,910,060
-----------
FOREIGN GOVERNMENT OBLIGATIONS--1.26%
750,000 Manitoba Province, 8.000%, 4/22/02...... 734,197
-----------
REPURCHASE AGREEMENTS--1.74%
1,015,452 Prudential Bache, dated 11/30/94 due
12/01/94, proceeds $1,015,605
(collateralized by $1,035,760 in
various U.S. Government Treasury and
Agency Securities with rates from
4.75% to 8.50%, due from 05/04/95 to
02/25/24)............................. 1,015,452
-----------
TOTAL INVESTMENTS--98.57% (Cost $58,842,506)........
57,522,198
OTHER ASSETS AND LIABILITIES (NET)--1.43%........... 833,334
-----------
TOTAL NET ASSETS--100%.............................. $58,355,532
-----------
-----------
<FN>

- --------------------------
* Non-income producing security
** Securities exempt from registration under Rule 144A
ADR American Depository Receipt
</FN>
</TABLE>

SEE NOTES TO FINANCIAL STATEMENTS.

24
<PAGE>
ST. JAMES PORTFOLIOS
SCHEDULE OF INVESTMENTS
NOVEMBER 30, 1994 (UNAUDITED)

EQUITY GROWTH PORTFOLIO
<TABLE>
<CAPTION>

SHARES VALUE
- ---------- -----------
<S> <C> <C>

COMMON STOCK--95.97%

BEVERAGES--4.62%
30,200 Buenos Aires Embotellado ADR............ $ 1,170,250
30,000 Pepsico................................. 1,061,250
-----------
2,231,500
-----------
BUSINESS SERVICES--3.56%
25,000 Olsten.................................. 784,375
50,000 G Tech Holdings*........................ 931,250
-----------
1,715,625
-----------
CABLE T.V.--2.96%
90,000 Comcast................................. 1,428,750
-----------
CHEMICALS--4.86%
30,000 Loctite................................. 1,357,500
36,000 Morton International.................... 990,000
-----------
2,347,500
-----------
COMMUNICATIONS EQUIPMENT--1.87%
16,000 Motorola................................ 902,000
-----------
COMPUTER & DATA PROCESSING
SERVICE--1.53%
20,000 Compuware*.............................. 740,000
-----------
CONSUMER GOODS & SERVICES--7.45%
10,000 Colgate Palmolive....................... 600,000
10,000 Gillette................................ 735,000
25,000 Duracell International.................. 1,125,000
30,000 Premark International................... 1,137,500
-----------
3,597,500
-----------
DEPARTMENT STORES--2.01%
30,000 Meyer Fred*............................. 971,250
-----------
DRUGS--2.33%
15,000 Schering-Plough......................... 1,123,125
-----------
ELECTRONIC COMPONENTS &
ACCESSORIES--2.75%
21,000 Intel................................... 1,325,625
-----------
ELECTRONIC DISTRIBUTION--2.92%
40,000 Itel*................................... 1,410,000
-----------
ENGINEERING SERVICES--0.98%
25,000 Jacobs Engineering Group................ 475,000
-----------
FINANCE--2.43%
40,000 Brooklyn Bancorp........................ $ 1,170,000
-----------
GAMING--2.70%
30,000 Caesars World........................... 1,305,000
-----------
GAS PRODUCTION & DISTRIBUTION--5.19%
30,000 El Paso Natural Gas..................... 1,008,750
45,000 Seagull Energy.......................... 961,875
42,000 Castle Energy*.......................... 535,500
-----------
2,506,125
-----------
GROCERY STORES--2.46%
30,000 Penn Traffic*........................... 1,185,000
-----------
HEALTH CARE--3.32%
20,000 US Health Care.......................... 895,000
50,000 Beverly Enterprises..................... 706,250
-----------
1,601,250
-----------
LENDING--2.00%
70,000 Interpool............................... 962,500
-----------
LEASING--2.32%
97,500 Rollins Truck Leasing................... 1,121,250
-----------
LIFE, ACCIDENT & HEALTH INSURANCE--2.04%
30,000 The Travelers........................... 986,250
-----------
MEDICAL & OTHER HEALTH SERVICES--2.03%
30,000 Sybron*................................. 978,750
-----------
METAL CANS & SHIPPING CONTAINERS--1.56%
20,000 Crown Cork & Seal*...................... 755,000
-----------
MOTOR VEHICLE PARTS & SUPPLIES--2.32%
55,000 Hayes Wheels International*............. 1,120,625
-----------
NON-FERROUS METALS--4.43%
40,000 Asarco.................................. 1,095,000
60,000 Freeport McMoRan........................ 1,027,500
750 Freeport McMoRan Copper & Gold.......... 15,094
-----------
2,137,594
-----------
</TABLE>

SEE NOTES TO FINANCIAL STATEMENTS.

25
<PAGE>
ST. JAMES PORTFOLIOS
SCHEDULE OF INVESTMENTS
NOVEMBER 30, 1994 (UNAUDITED)

EQUITY GROWTH PORTFOLIO (CONTINUED)
<TABLE>
<CAPTION>

SHARES VALUE
- ---------- -----------
<S> <C> <C>

COMMON STOCK (CONTINUED)

OIL & GAS--3.99%
30,000 Louisiana Land & Exploration............ $ 1,025,000
25,000 Burlington Resources.................... 893,750
-----------
1,918,750
-----------
PAINTS, VARNISHES, LACQUERS,
ENAMELS--1.91%
20,000 Sherwin Williams........................ 922,500
-----------
RADIO & TELEVISION BROADCASTING--3.18%
65,000 Broadcasting Partners-Class A*.......... 958,750
38,300 Saga Communications*.................... 574,500
-----------
1,533,250
-----------
TELEPHONE COMMUNICATIONS--14.25%
50,000 Airtouch Communications*................ 1,356,250
10,000 Cellular Communications*................ 500,000
60,000 Mobile Telecommunications Technology*... 1,042,500
20,000 Telefonos de Mexico ADR................. 1,060,000
50,000 Illinois Central........................ 1,512,500
TELEPHONE COMMUNICATIONS-- (CONTINUED)
50,000 Alltel.................................. $ 1,406,250
-----------
6,877,500
-----------
TRANSPORTATION--2.00%
55,000 Kirby*.................................. 962,500
-----------
TOTAL COMMON STOCK.................................. 46,311,719
-----------
CONVERTIBLE PREFERRED STOCK--1.76%
TELEPHONE COMMUNICATIONS
17,000 Cellular Communications................. 850,000
-----------
TOTAL INVESTMENTS--97.73% (Cost $46,855,878)........
47,161,719
OTHER ASSETS AND LIABILITIES (NET)-2.27%............ 1,094,850
-----------
TOTAL NET ASSETS--100%.............................. $48,256,569
-----------
-----------
<FN>

- --------------------------
* Non-income producing security
ADR American Depository Receipt
</FN>
</TABLE>

SEE NOTES TO FINANCIAL STATEMENTS.

26
<PAGE>
ST. JAMES PORTFOLIOS
SCHEDULE OF INVESTMENTS
NOVEMBER 30, 1994 (UNAUDITED)

VALUE EQUITY INCOME PORTFOLIO
<TABLE>
<CAPTION>

SHARES VALUE
- ---------- -----------
<S> <C> <C>

COMMON STOCK--98.41%

AEROSPACE--0.99%
3,400 Goodrich BF............................. $ 173,550
-----------
BANKS--10.42%
10,400 Corestates Financial.................... 257,400
6,200 Banc One................................ 166,625
6,100 Boatmens Bancshares..................... 170,038
1,500 Chemical Banking........................ 54,563
4,650 Mellon Bank............................. 154,031
8,500 Morgan (J.P.)........................... 499,375
16,200 PNC Bank................................ 336,150
5,800 Wachovia................................ 189,225
-----------
1,827,407
-----------
CHEMICALS--1.71%
2,048 Dow Chemical............................ 131,072
3,300 Olin.................................... 167,888
-----------
298,960
-----------
DRUGS--14.26%
11,446 American Home Products.................. 745,421
11,800 Bristol-Myers Squibb.................... 681,450
6,700 Lilly (Eli)............................. 419,588
5,200 Merck................................... 193,700
10,700 Upjohn.................................. 343,738
1,500 Warner-Lambert.......................... 116,063
-----------
2,499,960
-----------
FINANCE--2.54%
12,288 Ahmanson HF............................. 204,288
14,229 Great Western Financial................. 241,893
-----------
446,181
-----------
FOOD & BEVERAGES--0.73%
3,500 Heinz H.J............................... 127,313
-----------
HEALTHCARE--2.95%
20,100 Baxter International.................... 517,575
-----------
HOUSEHOLD PRODUCTS--2.33%
3,100 Clorox.................................. 180,575
5,900 Tambrands............................... 227,888
-----------
408,463
-----------
INSURANCE--BROKERS--4.32%
700 Marsh & McLennan........................ 50,488
INSURANCE--BROKERS--(CONTINUED)
7,900 Aetna Life & Casualty................... $ 353,525
9,100 Lincoln National........................ 353,763
-----------
757,776
-----------
INSURANCE--LIFE--3.26%
21,800 American General........................ 572,250
-----------
INSURANCE--PROPERTY & CASUALTY--0.62%
2,200 Safeco.................................. 108,213
-----------
NATURAL GAS UTILITIES--0.62%
1,300 Consolidated Natural Gas................ 45,500
2,300 Nicor................................... 63,000
-----------
108,500
-----------
PETROLEUM--10.87%
800 Amoco................................... 48,600
6,800 Atlantic Richfield...................... 703,800
3,684 Chevron................................. 160,715
6,288 Exxon................................... 379,638
2,100 Mobil................................... 179,025
6,981 Texaco.................................. 433,695
-----------
1,905,473
-----------
PRINTING & PUBLISHING--5.85%
14,900 Deluxe Corporation...................... 413,475
11,561 Dun & Bradstreet........................ 611,288
-----------
1,024,763
-----------
RETAIL--GENERAL--3.59%
10,000 FW Woolworth............................ 141,250
33,700 K-mart.................................. 488,650
-----------
629,900
-----------
TOBACCO--8.46%
10,200 American Brands......................... 360,825
9,500 Hanson PLC ADR.......................... 173,375
11,800 Philip Morris........................... 705,050
8,800 UST..................................... 243,100
-----------
1,482,350
-----------
UTILITIES--ELECTRIC--10.28%
11,300 Baltimore Gas & Electric................ 255,663
</TABLE>

SEE NOTES TO FINANCIAL STATEMENTS.

27
<PAGE>
ST. JAMES PORTFOLIOS
SCHEDULE OF INVESTMENTS
NOVEMBER 30, 1994 (UNAUDITED)

VALUE EQUITY INCOME PORTFOLIO (CONTINUED)
<TABLE>
<CAPTION>

SHARES VALUE
- ---------- -----------
<S> <C> <C>

COMMON STOCK (CONTINUED)

UTILITIES--ELECTRIC--(CONTINUED)
2,500 Central & South West.................... $ 53,125
11,321 Northeast Utilities..................... 241,986
10,300 NY St. Electric & Gas................... 191,838
11,600 Pennsylvania Pwr. & Lt.................. 232,000
9,644 Public SVCO Enterprise Group............ 256,772
12,144 Texas Utilities......................... 396,189
6,700 Wisconsin Energy........................ 174,200
-----------
1,801,773
-----------
UTILITIES--TELEPHONES--14.61%
9,066 Ameritech............................... 358,107
7,500 Bell Atlantic........................... 375,938
3,196 Bellsouth*.............................. 165,793
19,300 GTE..................................... 591,063
13,124 Nynex................................... 493,790
9,400 Pacific Telesis Group................... 272,600
8,652 US West................................. 304,983
-----------
2,562,274
-----------
TOTAL COMMON STOCKS................................. 17,252,681
-----------
-----------
REPURCHASE AGREEMENTS--0.76%
$ 133,124 Prudential Bache, dated 11/30/94 due
12/01/94, proceeds $133,144
(collateralized by $135,783 in various
U.S. Treasury and Government Agency
Securities with rates from 4.75% to
8.50%, due from 5/94/95 to 2/25/24) $ 133,124
-----------
TOTAL INVESTMENTS--99.17% (Cost $17,663,281)........
17,385,805
OTHER ASSETS AND LIABILITIES (NET)-0.83%............ 145,570
-----------
TOTAL NET ASSETS--100%.............................. $17,531,375
-----------
-----------
<FN>

- --------------------------
* Non-income producing security
ADR American Depository Receipt
</FN>
</TABLE>

SEE NOTES TO FINANCIAL STATEMENTS.

28
<PAGE>
ST. JAMES PORTFOLIOS
STATEMENT OF ASSETS AND LIABILITIES (UNAUDITED)
NOVEMBER 30, 1994

LIABILITIES:
Due to subcustodian............ -- -- -- -- 429,171 --
Payable for investment
securities purchased......... -- -- -- -- 625,680 84,388
Trustees' fees and expenses
payable (Note 2c)............ 1,492 1,091 701 3,126 2,620 970
Due to servicing agent (Note
2b).......................... 5,063 5,034 4,696 6,570 6,182 4,906
Organization expenses payable
(Note 1d).................... 37,592 37,200 36,758 39,343 38,797 37,088
Accrued expenses and other
liabilities.................. 11,002 3,882 4,325 6,057 5,534 4,082
------------ ------------ ------------- ------------ ------------ ------------
Total liabilities........ 55,149 47,207 46,480 55,096 1,107,984 131,434
------------ ------------ ------------- ------------ ------------ ------------
NET ASSETS:
Applicable to investors'
beneficial interests..... $ 18,991,565 $ 21,294,537 $12,819,431 $ 58,355,532 $ 48,256,569 $17,531,375
------------ ------------ ------------- ------------ ------------ ------------
------------ ------------ ------------- ------------ ------------ ------------
</TABLE>

SEE NOTES TO FINANCIAL STATEMENTS.

29
<PAGE>
ST. JAMES PORTFOLIOS
STATEMENT OF OPERATIONS (UNAUDITED)
FOR THE PERIOD JULY 8, 1994 (COMMENCEMENT OF OPERATIONS) THROUGH NOVEMBER 30,
1994

EXPENSES (Note 1e):
Investment advisory fee (Note 2a)..... 25,778 20,505 32,828 153,074 127,314 44,779
Servicing and fund accounting agent
fees (Note 2b)...................... 24,587 23,545 21,989 31,136 29,178 23,178
Subcustodian fees..................... 10,413 2,546 2,678 6,953 5,806 3,044
Amortization of organization expenses
(Note 1d)........................... 4,041 3,727 3,416 5,336 4,935 3,631
Trustees' fees and expenses (Note
2c)................................. 3,893 2,900 1,812 8,416 7,028 2,667
Auditing fees......................... 2,273 2,273 2,273 2,273 2,273 2,273
Legal fees............................ 773 877 532 2,386 1,970 693
Miscellaneous......................... 3,781 476 476 476 476 476
--------- ---------- ------------- ----------- ---------- ------------
Total Expenses........................ 75,539 56,849 66,004 210,050 178,980 80,741
Less: Waiver of fees (Note 2a)........ (25,778) (20,505) (32,828) (153,074) (127,314) (44,779)
Reimbursement of expenses
(Note 2a)..................... (49,761) (36,344) (33,176) (56,976) (51,666) (35,962)
--------- ---------- ------------- ----------- ---------- ------------
Net Expenses.......................... 0 0 0 0 0 0
--------- ---------- ------------- ----------- ---------- ------------
NET INVESTMENT INCOME................... 318,351 600,503 85,359 1,278,145 251,635 381,102
--------- ---------- ------------- ----------- ---------- ------------
REALIZED AND UNREALIZED GAIN (LOSS):
Net realized gain (loss) on
investments (Note 3a)............... 321,661 56,584 25,561 202,799 (368,342) 158,704
Net realized gain on futures (Note
3b)................................. 17,510 -- -- -- -- --
Net unrealized appreciation
(depreciation) on investments (Note
B).................................. 97,485 (596,609) (224,736) (1,320,308) 305,841 (277,475)
--------- ---------- ------------- ----------- ---------- ------------
NET REALIZED AND UNREALIZED
GAIN (LOSS)........................... 436,656 (540,025) (199,175) (1,117,509) (62,501) (118,771)
NET INCREASE (DECREASE) IN
NET ASSETS RESULTING FROM
OPERATIONS............................ $ 755,007 $ 60,478 $ (113,816) $ 160,636 $ 189,134 $ 262,331
--------- ---------- ------------- ----------- ---------- ------------
--------- ---------- ------------- ----------- ---------- ------------

Note A: Net of foreign taxes
withheld...................... $ 1,660 -- -- $ 5,230 -- $ 420
Note B: Includes net unrealized
(depreciation) on financial
futures....................... $ (365) -- -- -- -- --
</TABLE>

SEE NOTES TO FINANCIAL STATEMENTS.

30
<PAGE>
ST. JAMES PORTFOLIOS
STATEMENT OF CHANGES IN NET ASSETS (UNAUDITED)
FOR THE PERIOD JULY 8, 1994 (COMMENCEMENT OF OPERATIONS) THROUGH NOVEMBER 30,
1994

<TABLE>
<CAPTION>
EQUITY BOND SMALL EQUITY VALUE EQUITY
MARKET MARKET CAPITALIZATION BALANCED GROWTH INCOME
PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO
------------ ------------ ---------------- ------------ ------------ ------------
<S> <C> <C> <C> <C> <C> <C>
INCREASE (DECREASE) IN NET
ASSETS FROM:
OPERATIONS:
Net investment income......... $ 318,351 $ 600,503 $ 85,359 $ 1,278,145 $ 251,635 $ 381,102
Net realized gain (loss) on
investments................. 321,661 56,584 25,561 202,799 (368,342) 158,704
Net gain on futures........... 17,510 -- -- -- -- --
Net unrealized appreciation
(depreciation) on
investments for the
period...................... 97,485 (596,609) (224,736) (1,320,308) 305,841 (277,475)
------------ ------------ ---------------- ------------ ------------ ------------
Net increase (decrease) in
net assets resulting from
operations................ 755,007 60,478 (113,816) 160,636 189,134 262,331
TRANSACTIONS IN INVESTORS'
BENEFICIAL INTEREST:
Additions................... 26,980,174 21,689,798 13,187,902 61,998,705 52,307,078 21,635,073
Reductions.................. (8,760,383) (472,506) (271,422) (3,820,576) (4,256,410) (4,382,796)
------------ ------------ ---------------- ------------ ------------ ------------
Net increase from
transactions in investors'
beneficial interest....... 18,219,791 21,217,292 12,916,480 58,178,129 48,050,668 17,252,277
TOTAL INCREASE IN NET
ASSETS................ 18,974,798 21,277,770 12,802,664 58,338,765 48,239,802 17,514,608
NET ASSETS
Beginning of period (Note
1).......................... 16,767 16,767 16,767 16,767 16,767 16,767
------------ ------------ ---------------- ------------ ------------ ------------
End of period................. $ 18,991,565 $ 21,294,537 $12,819,431 $ 58,355,532 $ 48,256,569 $17,531,375
------------ ------------ ---------------- ------------ ------------ ------------
------------ ------------ ---------------- ------------ ------------ ------------
</TABLE>

SUPPLEMENTARY DATA (UNAUDITED)
FOR THE PERIOD JULY 8, 1994 (COMMENCEMENT OF OPERATIONS) TO NOVEMBER 30, 1994

<TABLE>
<CAPTION>
VALUE
EQUITY BOND SMALL EQUITY EQUITY
MARKET MARKET CAPITALIZATION BALANCED GROWTH INCOME
PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO
----------- ----------- ---------------- ----------- ----------- -----------
<S> <C> <C> <C> <C> <C> <C>
Ratios:
Expenses to
Average Net
Assets(1)....... 0.00%(2) 0.00%(2) 0.00%(2) 0.00%(2) 0.00%(2) 0.00%(2)
Net Investment
Income to
Average Net
Assets(1)....... 1.23%(2) 7.32%(3) 0.67%(2) 2.16%(2) 0.51%(2) 2.03%(2)
Portfolio
Turnover.......... 43%(2) 66%(3) 6%(2) 18%(2) 38%(2) 22%(2)
(1) Reflects a voluntary fee waiver and reimbursement of expenses by the investment advisor. Without these
waivers and reimbursements, the ratios of expenses to average net assets and net investment income to
average net assets would have been as follows:
Expenses to
Average Net
Assets............ 0.29%(2) 0.69%(3) 0.52%(2) 0.35%(2) 0.36%(2) 0.43%(2)
Net Investment
Income to Average
Net Assets........ 0.94%(2) 6.63%(3) 0.15%(2) 1.80%(2) 0.15%(2) 1.60%(2)
(2) Not annualized
(3) Annualized
</TABLE>

SEE NOTES TO FINANCIAL STATEMENTS.

31
<PAGE>
ST. JAMES PORTFOLIOS
NOTES TO FINANCIAL STATEMENTS (UNAUDITED)

1. SIGNIFICANT ACCOUNTING POLICIES

St. James Portfolios (the "Portfolio Series") was organized as a New York
trust on May 11, 1994, with the Portfolios established as separate series of the
Portfolio Series on the same date. The Portfolio Series is comprised of twelve
portfolios, six of which are active and described herein (each a "Portfolio";
collectively, the "Portfolios"): Equity Market Portfolio, Bond Market Portfolio,
Small Cap Portfolio, Balanced Portfolio, Equity Growth Portfolio, and Value
Equity Income Portfolio. The Portfolio Series had no operations until July 8,
1994 (when operations commenced) other than matters relating to its organization
and registration as an open-end diversified management investment company under
the Investment Company Act of 1940 (the "Act"), the sale of a beneficial
interest (the "Initial Interest") of each Portfolio at the respective purchase
price of $16,667 each to a corresponding series of Excelsior Institutional Trust
(each a "Fund") as noted below, and the sale of a beneficial interest of each
Portfolio at the respective purchase price of $100 each to UST Distributors,
Inc. The Declaration of Trust permits the Portfolio Series to issue an unlimited
number of beneficial interests in the Portfolio.

<TABLE>
<CAPTION>
PORTFOLIO FUND
- ------------------------------------------------ ------------------------------------------------
<S> <C>
Equity Market Portfolio Equity Index Fund
Bond Market Portfolio Bond Index Fund
Small Cap Portfolio Small Capitalization Fund
Balanced Portfolio Balanced Fund
Equity Growth Portfolio Equity Growth Fund
Value Equity Income Portfolio Value Equity Income Fund
</TABLE>

United States Trust Company of The Pacific Northwest ("U.S. Trust Pacific")
serves as the Portfolios' investment advisor. United States Trust Company of New
York ("U.S. Trust") serves as the subadvisor to the Equity Market, Bond Market
and Small Cap Portfolios. Becker Capital Management, Inc., Luther King Capital
Management and Spare, Kaplan, Bischel & Associates serve as the subadvisor to
the Balanced, Equity Growth and Value Equity Income Portfolios, respectively.
Signature Financial Services, Inc. ("SFSI") serves as the Portfolio Series'
servicing and fund accounting agent. U.S. Trust serves as the Portfolio Series'
custodian. U.S. Trust Pacific is a subsidiary of U.S. Trust. Each Portfolio's
fiscal year ends on May 31.

The following is a summary of the significant accounting policies of the
Portfolios:

a) VALUATION OF INVESTMENTS--Investments in securities (including financial
futures) that are traded on a recognized stock exchange are valued at the last
sale price on the exchange on which such securities are primarily traded or at
the last sale price on a national securities market. Securities traded
over-the-counter are valued each business day on the basis of closing
over-the-counter bid prices. Securities for which there were no transactions are
valued at the average of the most recent bid prices (as calculated by an
independent pricing service (the "Service") based upon its evaluation of the
market for such securities) when, in the judgment of the Service, quoted bid
prices for securities are readily available and are representative of the bid
side of the market. Securities for

32
<PAGE>
ST. JAMES PORTFOLIOS
NOTES TO FINANCIAL STATEMENTS (UNAUDITED) (CONTINUED)
which market quotations are not readily available are valued at fair value in
accordance with procedures adopted by the Portfolio Series' Trustees. Short-term
debt instruments with remaining maturities of 60 days or less are valued at
amortized cost, which approximates market value.

b) SECURITY TRANSACTIONS AND INVESTMENT INCOME--Security transactions are
recorded on a trade date basis. Realized gains and losses on investments sold
are recorded on the basis of identified cost. Interest income, including where
applicable amortization of discounts and premiums on investments, is recorded on
the accrual basis. Dividend income is recorded on the ex-dividend date.

c) REPURCHASE AGREEMENTS--The Portfolios may purchase portfolio securities
from financial institutions deemed to be creditworthy by the investment advisor
and subject to the seller's agreement to repurchase and the Portfolios'
agreement to resell such securities at mutually agreed-upon prices. Securities
purchased subject to such repurchase agreements are deposited with the
Portfolios' subcustodian or are maintained in the Federal Reserve/Treasury
book-entry system and must have, at all times, an aggregate market value of not
less than 101% of the repurchase price (including accrued interest).

If the value of the underlying security, including accrued interest, falls
below 101% of the repurchase price plus accrued interest, the Portfolios will
require the seller to deposit additional collateral by the next business day.
Default or bankruptcy of the seller may, however, expose the applicable
Portfolio to possible delay in connection with the disposition of the underlying
securities or loss to the extent that proceeds from a sale of the underlying
securities were less than the repurchase price under the agreement.

<TABLE>
<S> <C> <C> <C>
Equity Market Portfolio.......... $ 50,867 Balanced Portfolio............... $ 67,159
Bond Market Portfolio............ $ 46,910 Equity Growth Portfolio.......... $ 62,110
Small Cap Portfolio.............. $ 42,997 Value Equity Income Portfolio.... $ 45,719
</TABLE>

Any amount received by a Portfolio from its corresponding Fund as a result
of a redemption of the Fund's Initial Shares will be applied so as to reduce the
amount of unamortized organization expenses. The amount paid by the Portfolio
Series on behalf of a Portfolio on any withdrawal from that Portfolio of the
initial beneficial interest of UST Distributors, Inc. will be reduced by a pro
rata portion of any unamortized organization expenses of the Portfolio. With
regards to each Portfolio, this reduction will be determined with respect to
each withdrawal of an initial beneficial interest by calculating the proportion
of the amount of the Initial Interest withdrawn to the aggregate amount of the
Initial Interest then outstanding. The service providers to the Portfolios have
agreed to contribute to each Portfolio at the time of the termination,
liquidation, or dissolution of a Portfolio, an amount equal to the unamortized
organization expenses at such time.

e) EXPENSE ALLOCATION--Expenses incurred by the Portfolio Series with
respect to any two or more Portfolios are allocated in proportion to the average
net assets of each Portfolio, except where allocation of direct expenses to each
Portfolio can otherwise be fairly made. Expenses directly attributable to a
Portfolio are charged to that Portfolio.

33
<PAGE>
ST. JAMES PORTFOLIOS
NOTES TO FINANCIAL STATEMENTS (UNAUDITED) (CONTINUED)

f) FEDERAL INCOME TAXES--Each Portfolio will be treated as a partnership for
federal income tax purposes. As such, each investor in each Portfolio will be
subject to taxation on its share of that Portfolio's ordinary income and capital
gains. It is intended that each Portfolio's assets will be managed in such a way
that an investor in the Portfolio will be able to satisfy the requirements of
Subchapter M of the Internal Revenue Code.

2. INVESTMENT ADVISORY FEE, SUBADVISORY FEES AND OTHER TRANSACTIONS WITH
AFFILIATES

a) Fees payable by the Portfolio Series pursuant to the provisions of an
Investment Advisory Agreement with U.S. Trust Pacific are payable monthly,
computed on the average daily values of each Portfolio's net assets at the
following annual rates: 0.25% for the Equity Market and Bond Market Portfolios,
and 0.65% for the Small Cap, Balanced, Equity Growth and Value Equity Income
Portfolios. For the period July 8, 1994 (commencement of operations) through
November 30, 1994, U.S. Trust Pacific voluntarily agreed to waive all of its
investment advisory fees, amounting to the following:

<TABLE>
<S> <C> <C> <C>
Equity Market Portfolio......... $ 25,778 Balanced Portfolio.............. $ 153,074
Bond Market Portfolio........... $ 20,505 Equity Growth Portfolio......... $ 127,314
Small Cap Portfolio............. $ 32,828 Value Equity Income Portfolio... $ 44,779
</TABLE>

In addition, U.S. Trust Pacific voluntarily agreed to reimburse the
Portfolio Series for all expenses exclusive of the investment advisory fee,
taxes, interest, brokerage commissions and extraordinary expenses. For the
period July 8, 1994 (commencement of operations) through November 30, 1994, U.S.
Trust Pacific voluntarily reimbursed the Portfolio Series the following amounts:

<TABLE>
<S> <C> <C> <C>
Equity Market Portfolio.......... $ 49,761 Balanced Portfolio............... $ 56,976
Bond Market Portfolio............ $ 36,344 Equity Growth Portfolio.......... $ 51,666
Small Cap Portfolio.............. $ 33,176 Value Equity Income Portfolio.... $ 35,962
</TABLE>

Pursuant to separate subadvisory agreements between U.S. Trust Pacific and
each subadvisor, subadvisory fees are payable monthly by U.S. Trust Pacific,
computed on the average daily value of each Portfolio's net assets at the
following maximum annual rates: 0.25% for the Equity Market and Bond Market
Portfolios, 0.65% for the Small Cap Portfolio, 0.425% for the Balanced
Portfolio, and 0.40% for the Equity Growth and Value Equity Income Portfolios.
The subadvisors are compensated only by U.S. Trust Pacific, and receive no fee
directly from the Portfolio Series. For the period July 8, 1994 (commencement of
operations) through November 30, 1994, subadvisory fees amounted to the
following:

<TABLE>
<S> <C> <C> <C>
Equity Market Portfolio......... $ 25,778 Balanced Portfolio.............. $ 100,087
Bond Market Portfolio........... $ 20,505 Equity Growth Portfolio......... $ 78,347
Small Cap Portfolio............. $ 32,828 Value Equity Income Portfolio... $ 29,852
</TABLE>

b) Pursuant to the provisions of a Servicing and Fund Accounting Agreement
("Agreement") with SFSI, SFSI serves as the servicing and fund accounting agent
to the Portfolio Series, providing fund accounting and other services necessary
for the operations of the Portfolio Series and furnishing office facilities
required for conducting the business of the Portfolio Series. Certain officers
of

34
<PAGE>
ST. JAMES PORTFOLIOS
NOTES TO FINANCIAL STATEMENTS (UNAUDITED) (CONTINUED)
SFSI serve as officers of the Portfolio Series and are compensated by SFSI. Fees
payable to SFSI pursuant to the Agreement for its servicing functions are
payable monthly and computed on the average daily value of each Portfolio's net
assets at the following annual rates: 0.05% of the first $2 billion in assets;
0.08% of the next $500 million; 0.07% of the next $500 million; 0.06% of the
next $1 billion; and 0.05% thereafter. In addition, for its fund accounting
services under the Agreement, SFSI receives a fee payable monthly of $50,000 per
year per Portfolio. For the period July 8, 1994 (commencement of operations)
through November 30, 1994, fees payable under the Agreement for each Portfolio
amounted to the following:

<TABLE>
<S> <C> <C> <C>
Equity Market Portfolio.......... $ 24,587 Balanced Portfolio............... $ 31,136
Bond Market Portfolio............ $ 23,545 Equity Growth Portfolio.......... $ 29,178
Small Cap Portfolio.............. $ 21,989 Value Equity Income Portfolio.... $ 23,178
</TABLE>

c) Independent Trustees receive an annual retainer of $8,000 and an
additional $500 for each meeting of the Board of Trustees attended. In addition,
the Portfolio Series reimburses the independent Trustees for reasonable expenses
incurred when acting in their capacity as Trustees.

3. PURCHASES AND SALES OF INVESTMENT SECURITIES

a) Investment transactions (excluding short-term investments) for the period
July 8, 1994 (commencement of operations) through November 30, 1994 were as
follows:

<TABLE>
<CAPTION>
COST OF PURCHASES PROCEEDS FROM SALES
----------------- -------------------
<S> <C> <C>
Equity Market Portfolio................................... $ 26,660,902 $ 8,642,388
Bond Market Portfolio..................................... $ 25,051,174 $ 4,363,677
Small Cap Portfolio....................................... $ 12,961,234 $ 560,782
Balanced Portfolio........................................ $ 66,086,514 $ 8,519,967
Equity Growth Portfolio................................... $ 61,827,929 $ 14,603,709
Value Equity Income Portfolio............................. $ 20,741,494 $ 3,370,042
</TABLE>

b) With respect to the Equity Market Portfolio, the portfolio is engaged in
trading financial futures contracts. The Portfolio is exposed to market risk as
a result of changes in the value of the underlying financial instruments.
Investments in financial futures require the Portfolio 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
or received to reflect daily unrealized gains or losses. When the contracts are
closed, the Portfolio recognizes a realized gain or loss. These investments
require initial margin deposits with a custodian, which consists of cash or cash
equivalents, up to approximately 10% of the contract amount. The amount of these
deposits is determined by the exchange or Board of Trade on which the contract
is traded and is subject to change.

35
<PAGE>
ST. JAMES PORTFOLIOS
NOTES TO FINANCIAL STATEMENTS (UNAUDITED) (CONTINUED)

c) The following summarizes the gross and accumulated net unrealized
appreciation (depreciation) on investments for each Portfolio at November 30,
1994:

<TABLE>
<CAPTION>
GROSS GROSS
APPRECIATION (DEPRECIATION) NET
------------ -------------- ------------
<S> <C> <C> <C>
Equity Market Portfolio.............................. $ 934,824 $ (836,974) $ 97,850
Bond Market Portfolio................................ $ -- $ (596,609) $ (596,609)
Small Cap Portfolio.................................. $ 775,308 $ (1,000,044) $ (224,736)
Balanced Portfolio................................... $1,143,614 $ (2,463,922) $ (1,320,308)
Equity Growth Portfolio.............................. $2,409,802 $ (2,103,961) $ 305,841
Value Equity Income Portfolio........................ $ 525,093 $ (802,568) $ (277,475)
</TABLE>

At November 30, 1994, the cost of investments of each Portfolio for Federal
income tax purposes was substantially the same as the cost for financial
reporting purposes. The cost of investments for each Portfolio for financial
reporting purposes as of November 30, 1994 was as follows:

<TABLE>
<S> <C> <C> <C>
Equity Market Portfolio...... $18,773,222 Balanced Portfolio........... $58,842,506
Bond Market Portfolio........ $20,591,474 Equity Growth Portfolio...... $46,855,878
Value Equity Income
Small Cap Portfolio.......... $12,997,893 Portfolio.................... $17,663,280
</TABLE>

36
<PAGE>
SERVICING AGENT
Signature Financial Services, Inc.
6 St. James Avenue
Boston, MA 02116
(617) 423-0800

INVESTMENT ADVISER OF THE PORTFOLIOS
United States Trust Company of the
Pacific Northwest
4380 Southwest Macadam Avenue
Suite 450
Portland, OR 97201

CUSTODIAN OF THE PORTFOLIOS
United States Trust Company of New York
114 West 47th Street
New York, NY 10036

DISTRIBUTOR
UST Distributors, Inc.
125 West 55th Street
New York, NY 10019

TRANSFER AGENT TO THE FUNDS
Mutual Fund Services Company
73 Tremont Street
Boston, MA 02108

EXCELSIOR
INSTITUTIONAL
TRUST

EQUITY INDEX FUND
BOND INDEX FUND
SMALL CAPITALIZATION FUND
BALANCED FUND
EQUITY GROWTH FUND
VALUE EQUITY INCOME FUND

SEMIANNUAL REPORT
NOVEMBER 30, 1994

<PAGE>

PART C

ITEM 24. FINANCIAL STATEMENTS AND EXHIBITS.

(a) Financial Statements:

The Financial Statements included in Part A are as follows:

Financial Highlights: EXCELSIOR INSTITUTIONAL EQUITY INDEX FUND; EXCELSIOR
INSTITUTIONAL BOND INDEX FUND; EXCELSIOR INSTITUTIONAL SMALL CAPITALIZATION
FUND; EXCELSIOR INSTITUTIONAL BALANCED FUND; EXCELSIOR INSTITUTIONAL EQUITY
GROWTH FUND; EXCELSIOR INSTITUTIONAL VALUE EQUITY INCOME FUND.

The Financial Statements included in Part B are as follows:

Excelsior Institutional Bond Index Fund
Statement of Assets and Liabilities, June 20, 1994
Notes to Financial Statements, June 20, 1994

Bond Market Portfolio
Statement of Assets and Liabilities, June 20, 1994
Notes to Financial Statements, June 20, 1994

Excelsior Institutional Equity Index Fund
Statement of Assets and Liabilities, June 20, 1994
Notes to Financial Statements, June 20, 1994

Equity Market Portfolio
Statement of Assets and Liabilities, June 20, 1994
Notes to Financial Statements, June 20, 1994

Excelsior Institutional Small Capitalization Fund
Statement of Assets and Liabilities, June 20, 1994
Notes to Financial Statements, June 20, 1994

Small Cap Portfolio
Statement of Assets and Liabilities, June 20, 1994
Notes to Financial Statements, June 20, 1994

Excelsior Institutional Balanced Fund
Statement of Assets and Liabilities, June 20, 1994
Notes to Financial Statements, June 20, 1994

Balanced Portfolio
Statement of Assets and Liabilities, June 20, 1994
Notes to Financial Statements, June 20, 1994

Excelsior Institutional Equity Growth Fund
Statement of Assets and Liabilities, June 20, 1994
Notes to Financial Statements, June 20, 1994

Equity Growth Portfolio

C-1

<PAGE>

Statement of Assets and Liabilities, June 20, 1994
Notes to Financial Statements, June 20, 1994

Excelsior Institutional Value Equity Income Fund
Statement of Assets and Liabilities, June 20, 1994
Notes to Financial Statements, June 20, 1994

Value Equity Income Portfolio
Statement of Assets and Liabilities, June 20, 1994
Notes to Financial Statements, June 20, 1994

Excelsior Institutional Trust
Statement of Assets and Liabilities (unaudited) at November 30, 1994
Statement of Operations (unaudited) for the period July 8, 1994
(commencement of operations) through November 30, 1994
Statement of Changes in Net Assets (unaudited)
Financial Highlights (unaudited)
Notes to Financial Statements (unaudited) November 30, 1994

St. James Portfolios
Schedule of Investments (unaudited) at November 30, 1994
Statement of Assets and Liabilities (unaudited) at November 30, 1994
Statement of Operations (unaudited) for the period July 8, 1994
(commencement of operations) through November 30, 1994
Statement of Changes in Net Assets (unaudited)
Supplementary Data (unaudited)
Notes to Financial Statements (unaudited) November 30, 1994

(b) Exhibits:

1. Trust Instrument of the Registrant.5

1(a). Amended and Restated Schedule A to Trust Instrument of the Registrant.5

2. By-Laws of the Registrant.5

6. Distribution Agreement between the Registrant and UST Distributors, Inc.2

8. Custodian Agreement between the Registrant and United States Trust Company
of New York ("U.S. Trust"), as custodian.4

8(a). Sub-Custodian Agreement between the Registrant, U.S. Trust, and
Investors Bank & Trust Company.4

9(a). Servicing Plan of the Registrant.4

9(b). Servicing and Fund Accounting Agreement between the Registrant and
Signature Financial Services, Inc.2

9 (c). Form of Shareholder Servicing Agreement between the Registrant and
certain financial institutions.2

C-2

<PAGE>

9 (d). Form of Transfer Agency Agreement between the Registrant and Mutual
Funds Service Company.2

10. Opinion of Counsel.2

11. Consents of Independent Accountants.5

13. Investor Representation Letter of Initial Shareholder.2

16. Schedule for Computation of Performance Quotations.2

17. Financial Data Schedules.5

18. Powers of Attorney for Trustees and officers.2
- ------------------

1 Incorporated herein by reference from the Registrant's Registration Statement
on Form N-1A (File Nos. 33-78264 and 811-8490) (the "Registration Statement"),
as filed with the Securities and Exchange Commission (the "SEC") on April 28,
1994.

2 Incorporated herein by reference from Pre-Effective Amendment No. 2 to the
Registration Statement, as filed with the SEC on June 22, 1994.

3 Incorporated herein by reference from Post-Effective Amendment No. 1 to the
Registration Statement, as filed with the SEC on July 13, 1994.

4 Incorporated herein by reference from Post-Effective Amendment No. 2 to the
Registration Statement (File Nos. 33-71306, 811-8132), as filed with the SEC on
September 28, 1994.

5 Filed herewith.

ITEM 25. PERSONS CONTROLLED BY OR UNDER COMMON CONTROL WITH REGISTRANT.

Not applicable.

ITEM 26. NUMBER OF HOLDERS OF SECURITIES.

Shares of Beneficial Interest (par value $.00001).

Title of Class: Number of Record Holders As of April 4, 1995.

Excelsior Institutional Equity Fund: 3
Excelsior Institutional Income Fund: 2
Excelsior Institutional Total Return Bond Fund: 3
Excelsior Institutional Equity Index Fund: 2
Excelsior Institutional Bond Index Fund: 2
Excelsior Institutional Small Capitalization Fund: 2
Excelsior Institutional Balanced Fund: 2
Excelsior Institutional Equity Growth Fund: 2
Excelsior Institutional Value Equity Income Fund: 2

C-3

<PAGE>

Excelsior Institutional International Equity Fund: 2
Excelsior Institutional Income and Growth Fund: --
Excelsior Institutional Socially Responsible Equity Fund: --

ITEM 27. INDEMNIFICATION.

Reference is hereby made to Article IX of the Registrant's Trust
Instrument, filed as an exhibit to this Registration Statement.

The Trustees and officers of the Registrant and the personnel of the
Registrant's administrator are insured under an errors and omissions liability
insurance policy. The Registrant and its officers are also insured under the
fidelity bond required by Rule 17g-1 under the Investment Company Act of 1940,
as amended (the "1940 Act").

Insofar as indemnification for liabilities arising under the Securities
Act of 1933, as amended (the "1933 Act"), may be permitted to directors,
trustees, officers and controlling persons of the Registrant and the principal
underwriter pursuant to the foregoing provisions or otherwise, the Registrant
has been advised that in the opinion of the SEC such indemnification is against
public policy as expressed in the 1933 Act and is, therefore, unenforceable. In
the event that a claim for indemnification against such liabilities (other than
the payment by the Registrant of expenses incurred or paid by a director,
trustee, officer, or controlling person of the Registrant and the principal
underwriter in connection with the successful defense of any action, suite or
proceeding) is asserted against the Registrant by such director, trustee,
officer or controlling person or principal underwriter in connection with the
shares being registered, the Registrant will, unless in the opinion of its
counsel the matter has been settled by controlling precedent, submit to a court
of appropriate jurisdiction the question whether such indemnification by it is
against public policy as expressed in the 1933 Act and will be governed by the
final adjudication of such issue.

ITEM 28. BUSINESS AND OTHER CONNECTIONS OF INVESTMENT ADVISER.

Not Applicable.

ITEM 29. PRINCIPAL UNDERWRITERS.

(a) UST Distributors, Inc. is the distributor for the shares of the
Registrant. UST Distributors, Inc. also serves as the principal underwriter
or placement agent for other registered investment companies.

(b) The following are the directors and officers of UST Distributors,
Inc. The principal business address of these individuals is 125 West 55th
Street, New York, New York 10022. Their respective position and offices with the
Registrant, if any, are also indicated.

WILLIAM B. BLUNDIN: President and Director.

RICHARD E. STIERWALT: Chief Executive Officer and Director.

C-4

<PAGE>

SUSAN L. WEST: Chief Operating Officer.

DENNIS R. SHEEHAN: Chief Financial Officer.

JAMES W. BERNAICHE: Chief Compliance Officer.

RICHARD A. FABIETTI: Treasurer.

PAUL J. COSTAGLIOLA: Vice President, Broker/Dealer Compliance.

ITEM 30. LOCATION OF ACCOUNTS AND RECORDS.

All accounts, books and other documents required to be maintained by
Section 31(a) of the 1940 Act and the Rules thereunder will be maintained at the
offices of:

SIGNATURE FINANCIAL SERVICES, INC. (servicing and fund accounting agent): 89
South Street, Boston, MA 02111.

MUTUAL FUNDS SERVICE COMPANY (transfer agent): 73 Tremont Street, Boston, MA
02108-3913.

UNITED STATES TRUST COMPANY OF NEW YORK (custodian): Mutual Funds Service
Division, 770 Broadway, New York, NY 10003-9598.

INVESTORS BANK & TRUST COMPANY (subcustodian): 79 Milk Street, Boston, MA
02205.

UST DISTRIBUTORS, INC. (distributor): 125 West 55th Street, New York, NY
10022.

ITEM 31. MANAGEMENT SERVICES.

Not Applicable.

ITEM 32. UNDERTAKINGS.

(a) If the information called for by Item 5A of Form N-1A is contained in the
latest annual report to shareholders, the Registrant shall furnish each person
to whom a prospectus is delivered with a copy of the Registrant's latest annual
report to shareholders upon request and without charge.

(b) The Registrant undertakes to comply with Section 16(c) of the 1940 Act as
though such provisions of the 1940 Act were applicable to the Registrant, except
that the request referred to in the third full paragraph thereof may only be
made by shareholders who hold in the aggregate at least 10% of the outstanding
shares of the Registrant, regardless of the net asset value of shares held by
such requesting shareholders.

C-5

<PAGE>

SIGNATURES

Pursuant to the requirements of the Securities Act of 1933 and the
Investment Company Act of 1940, the Registrant certifies that it meets all the
requirements for effectiveness of this amendment to its Registration Statement
on Form N-1A ("Registration Statement") pursuant to Rule 485(b) under the
Securities Act of 1933, and has duly caused this Registration Statement to be
signed on its behalf by the undersigned, thereto duly authorized in the City of
Boston and Commonwealth of Massachusetts on the 13th day of June, 1995.

EXCELSIOR INSTITUTIONAL TRUST

By /s/ PHILIP W. COOLIDGE
-----------------------------
Philip W. Coolidge
President

Pursuant to the requirements of the Securities Act of 1933, this
Registration Statement has been signed below by the following persons in the
capacities indicated on June 13, 1995.

/s/ PHILIP W. COOLIDGE
- ---------------------------------
Philip W. Coolidge
President

/s/ JAMES B. CRAVER
- ---------------------------------
James B. Craver
Treasurer and Chief Financial and Accounting Officer

RODMAN L. DRAKE*
- ---------------------------------
Rodman L. Drake
Trustee

JONATHAN PIEL*
- ---------------------------------
Jonathan Piel
Trustee

W. WALLACE MCDOWELL*
- ---------------------------------
Trustee
W. Wallace McDowell

*By /s/ JAMES B. CRAVER
----------------------------
James B. Craver
As attorney-in-fact pursuant to a power of attorney previously filed

<PAGE>

SIGNATURES

St. James Portfolios (the "Portfolio") has duly caused the Registration
Statement on Form N-1A ("Registration Statement") of Excelsior Institutional
Trust (the "Trust") to be signed on its behalf by the undersigned, thereto duly
authorized in the City of Boston and the Commonwealth of Massachusetts on the
13th day of June, 1995.

ST. JAMES PORTFOLIOS

By /s/ PHILIP W. COOLIDGE
-----------------------------
Philip W. Coolidge
President of the Portfolio

Pursuant to the requirements of the Securities Act of 1933, the Trust's
Registration Statement has been signed below by the following persons in the
capacities indicated on June 13, 1995.

/s/ PHILIP W. COOLIDGE
- ---------------------------------
Philip W. Coolidge
President of the Portfolio

/s/ JAMES B. CRAVER
- ---------------------------------
James B. Craver
Treasurer and Chief Financial and Accounting Officer of the Portfolio

DAVID H. CARTER*
- ---------------------------------
David H. Carter
Trustee of the Portfolio

RAYMOND L. COLOTTI*
- ---------------------------------
Raymond L. Colotti
Trustee of the Portfolio

STEPHEN D. BARRETT*
- ---------------------------------
Stephen D. Barrett
Trustee of the Portfolio

WILLIAM B. BLUDIN*
- ---------------------------------
William B. Bludin
Trustee of the Portfolio

JOHN H. FORSGREN*
- ---------------------------------
John H. Forsgren
Trustee of the Portfolio

*By /s/ JAMES B. CRAVER
----------------------------
James B. Craver
As attorney-in-fact pursuant to a power of attorney previously filed

<PAGE>

INDEX TO EXHIBITS

Exhibit No. Description of Exhibit

1. Trust Instrument of the Registrant.

1(a). Amended and Restated Schedule A to Trust Instrument of the Registrant.

2. By-Laws of the Registrant.

11. Consents of Independent Accountants.

17. Financial Data Schedules.

Exhibit 1

EXCELSIOR INSTITUTIONAL TRUST

TRUST INSTRUMENT

This TRUST INSTRUMENT is made on April 27, 1994, by the Trustees, to
establish a business trust for the investment and reinvestment of funds
contributed to the Trust by investors. The Trustees declare that all money and
property contributed to the Trust shall be held and managed in trust pursuant to
this Trust Instrument. The name of the Trust created by this Trust Instrument is
Excelsior Institutional Trust.

ARTICLE I

DEFINITIONS

Unless otherwise provided or required by the context:

(a) "By-laws" means the By-laws of the Trust adopted by the Trustees,
as amended from time to time;

(b) "Class" means the class of Shares of a Series established pursuant
to Article IV;

(d) "Covered Person" means a person so defined in Article IX, Section
2;

(e) "Delaware Act" means Chapter 38 of Title 12 of the Delaware Code
entitled "Treatment of Delaware Business Trusts," as amended from time to time;

(f) "Majority Shareholder Vote" means "the vote of a majority of the
outstanding voting securities" as defined in the 1940 Act;

(g) "Net Asset Value" means the net asset value of each Series of the
Trust, determined as provided in Article V, Section 3;

(h) "Outstanding Shares" means Shares shown in the books of the Trust
or its transfer agent as then issued and outstanding, but does not include
Shares which have been repurchased or redeemed by the Trust and which are held
in the treasury of the Trust;

(i) "Series" means a series of Shares established pursuant to Article
IV;

(j) "Shareholder" means a record owner of Outstanding Shares;

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(k) "Shares" means the equal proportionate transferable units of
interest into which the beneficial interest of each Series or Class is divided
from time to time (including whole Shares and fractions of Shares);

(1) "Trust" means Excelsior Institutional Trust established hereby, and
reference to the Trust, when applicable to one or more Series, refers to that
Series;

(m) "Trustees" means the person or persons who have signed this Trust
Instrument, so long as they shall continue in office in accordance with the
terms hereof, and all other persons who may from time to time be duly qualified
and serving as Trustees in accordance with Article II, in all cases in their
capacities as Trustees hereunder;

(n) "Trust Property" means any and all property, real or personal,
tangible or intangible, which is owned or held by or for the Trust or any Series
or the Trustees on behalf of the Trust or any Series;

(o) The "1940 Act" means the Investment Company Act of 1940, as amended
from time to time.

ARTICLE II

THE TRUSTEES

Section 1. MANAGEMENT OF THE TRUST. The business and affairs of the
Trust shall be managed by or under the direction of the Trustees, and they shall
have all powers necessary or desirable to carry out that responsibility. The
Trustees may execute all instruments and take all action they deem necessary or
desirable to promote the interests of the Trust. Any determination made by the
Trustees in good faith as to what is in the interests of the Trust shall be
conclusive.

Section 2. INITIAL TRUSTEE; ELECTION AND NUMBER OF TRUSTEES. The
initial Trustee shall be the person initially signing this Trust Instrument. The
number of Trustees (other than the initial Trustee) shall be fixed from time to
time by a majority of the Trustees; provided, that there shall be at least one
(1) Trustee. The Shareholders shall elect the Trustees (other than the initial
Trustee) on such dates as the Trustees may fix from time to time.

Section 3. TERM OF OFFICE OF TRUSTEES. Each Trustee shall hold office
for life or until his successor is elected or the Trust terminates; except that
(a) any Trustee may resign by delivering to the other Trustees or to any Trust
officer a written resignation effective upon such delivery or a later date
specified therein; (b) any Trustee may be removed with or without cause at any
time by a written instrument signed by at least two-thirds of the other
Trustees, specifying the effective date of removal; (c) any Trustee who requests
to be retired, or who has become physically or mentally incapacitated or is
otherwise unable to serve, may be retired by a written instrument signed by a
majority of the other Trustees, specifying the effective date of retirement; and
(d) any Trustee may be removed at any meeting of the Shareholders by a vote of
at least two-thirds of the Outstanding Shares.

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<PAGE>

Section 4. VACANCIES; APPOINTMENT OF TRUSTEES. Whenever a vacancy shall
exist in the Board of Trustees, regardless of the reason for such vacancy, the
remaining Trustees shall appoint any person as they determine in their sole
discretion to fill that vacancy, consistent with the limitations under the 1940
Act. Such appointment shall be made by a written instrument signed by a majority
of the Trustees or by a resolution of the Trustees, duly adopted and recorded in
the records of the Trust, specifying the effective date of the appointment. The
Trustees may appoint a new Trustee as provided above in anticipation of a
vacancy expected to occur because of the retirement, resignation, or removal of
a Trustee, or an increase in number of Trustees, provided that such appointment
shall become effective only at or after the expected vacancy occurs. As soon as
any such Trustee has accepted his appointment in writing, the trust estate shall
vest in the new Trustee, together with the continuing Trustees, without any
further act or conveyance, and he shall be deemed a Trustee hereunder. The power
of appointment is subject to Section 16(a) of the 1940 Act.

Section 5. TEMPORARY VACANCY OR ABSENCE. Whenever a vacancy in the
Board of Trustees shall occur, until such vacancy is filled, or while any
Trustee is absent from his domicile (unless that Trustee has made arrangements
to be informed about, and to participate in, the affairs of the Trust during
such absence), or is physically or mentally incapacitated, the remaining
Trustees shall have all the powers hereunder and their certificate as to such
vacancy, absence, or incapacity shall be conclusive. Any Trustee may, by power
of attorney, delegate his powers as Trustee for a period not exceeding six (6)
months at any one time to any other Trustee or Trustees.

Section 6. CHAIRMAN. The Trustees may appoint one of their number to be
Chairman of the Board of Trustees. The Chairman shall preside at all meetings
of the Trustees.

Section 7. ACTION BY THE TRUSTEES. The Trustees shall act by majority
vote at a meeting duly called (including at a telephonic meeting, unless the
1940 Act requires that a particular action be taken only at a meeting of
Trustees in person) at which a quorum is present or by written consent of a
majority of Trustees (or such greater number as may be required by applicable
law) without a meeting. A majority of the Trustees shall constitute a quorum at
any meeting. Meetings of the Trustees may be called orally or in writing by the
Chairman of the Board of Trustees or by any Trustee. Notice of the time, date
and place of all Trustees meetings shall be given to each Trustee by telephone,
facsimile or other electronic mechanism sent to his home or business address at
least twenty-four hours in advance of the meeting or by written notice mailed to
his home or business address at least seventy-two hours in advance of the
meeting. Notice need not be given to any Trustee who attends the meeting without
objecting to the lack of notice or who signs a waiver of notice either before or
after the meeting. Subject to the requirements of the 1940 Act, the Trustees by
majority vote may delegate to any Trustee or Trustees authority to approve
particular matters or take particular actions on behalf of the Trust. Any
written consent or waiver may be provided and delivered to the Trust by
facsimile or other similar electronic mechanism.

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<PAGE>

Section 8. OWNERSHIP OF TRUST PROPERTY. The Trust Property of the Trust
and of each Series shall be held separate and apart from any assets now or
hereafter held in any capacity other than as Trustee hereunder by the Trustees
or any successor Trustees. All of the Trust Property and legal title thereto
shall at all times be considered as vested in the Trustees on behalf of the
Trust, except that the Trustees may cause legal title to any Trust Property to
be held by or in the name of the Trust, or in the name of any person as nominee.
No Shareholder shall be deemed to have a severable ownership in any individual
asset of the Trust or of any series or any right of partition or possession
thereof, but each Shareholder shall have, as provided in Article IV, a
proportionate undivided beneficial interest in the Trust or Series represented
by Shares.

Section 9. EFFECT OF TRUSTEES NOT SERVING. The death, resignation,
retirement, removal, incapacity, or inability or refusal to serve of the
Trustees, or any one of them, shall not operate to annul the Trust or to revoke
any existing agency created pursuant to the terms of this Trust Instrument.

Section 10. TRUSTEES, ETC. AS SHAREHOLDERS. Subject to any restrictions
in the By-laws, any Trustee, officer, agent or independent contractor of the
Trust may acquire, own and dispose of Shares to the same extent as any other
Shareholder; the Trustees may issue and sell Shares to and buy Shares from any
such person or any firm or company in which such person is interested, subject
only to any general limitations herein.

ARTICLE III

POWERS OF THE TRUSTEES

Section 1. POWERS. The Trustees in all instances shall act as
principals, free of the control of the Shareholders. The Trustees shall have
full power and authority to take or refrain from taking any action and to
execute any contracts and instruments that they may consider necessary or
desirable in the management of the Trust. The Trustees shall not in any way be
bound or limited by current or future laws or customs applicable to trust
investments, but shall have full power and authority to make any investments
which they, in their sole discretion, deem proper to accomplish the purposes of
the Trust. The Trustees may exercise all of their powers without recourse to any
court or other authority. Subject to any applicable limitation herein or in the
By-laws or resolutions of the Trust, the Trustees shall have power and
authority, without limitation:

(a) To invest and reinvest cash and other property, and to hold cash or
other property uninvested, without in any event being bound or limited by any
current or future law or custom concerning investments by trustees, and to sell,
exchange, lend, pledge, mortgage, hypothecate, write options on and lease any or
all of the Trust Property; to invest in obligations and securities of any kind,
and without regard to whether they may mature before the possible termination of
the Trust; and without limitation to invest all or any part of its cash and
other property in securities issued by a registered investment company or series
thereof, subject to the provisions of the 1940 Act;

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<PAGE>

(b) To operate as and carry on the business of a registered investment
company, and exercise all the powers necessary and proper to conduct such a
business;

(c) To adopt By-laws not inconsistent with this Trust Instrument
providing for the conduct of the business of the Trust and to amend and repeal
them to the extent such right is not reserved to the Shareholders;

(d) To elect and remove such officers and appoint and terminate such
agents as they deem appropriate;

(e) To employ as custodian of any assets of the Trust, subject to any
provisions herein or in the By-laws, one or more banks, trust companies or
companies that are members of a national securities exchange, or other entities
permitted by the Commission to serve as such;

(f) To retain one or more transfer agents and Shareholder servicing
agents, or both;

(g) To establish a registered office and have a registered agent in the
State of Delaware;

(h) To provide for the distribution of Shares either through a
Principal Underwriter as provided herein or by the Trust itself, or both, or
pursuant to a distribution plan of any kind;

(i) To set record dates in the manner provided for herein or in the By-
laws;

(j) To delegate such authority as they consider desirable to any
officers of the Trust and to any agent, independent contractor, manager,
investment adviser, custodian or underwriter;

(k) To sell or exchange any or all of the assets of the Trust, subject
to Article X, Section 5;

(l) To vote or give assent, or exercise any rights of ownership, with
respect to other securities or property; and to execute and deliver powers of
attorney delegating such power to other persons;

(m) To exercise powers and rights of subscription or otherwise which in
any manner arise out of ownership of securities;

(n) To hold any security or other property (i) in a form not indicating
any trust, whether in bearer, book entry, unregistered or other negotiable form,
or (ii) either in the Trust's or Trustees' own name or in the name of a
custodian or a nominee or nominees, subject to safeguards according to the usual
practice of business trusts or investment companies;

(o) To establish separate and distinct Series with separately defined
investment objectives and policies and distinct investment purposes, and with

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<PAGE>

separate Shares representing beneficial interests in such Series, and to
establish separate Classes, all in accordance with the provisions of Article IV;

(p) To the full extent permitted by Section 3804 of the Delaware Act,
to allocate assets, liabilities and expenses of the Trust to a particular Series
and liabilities and expenses to a particular Class or to apportion the same
between or among two or more Series or Classes, provided that any liabilities or
expenses incurred by a particular Series or Class shall be payable solely out of
the assets belonging to that Series or Class as provided for in Article IV,
Section 4;

(q) To consent to or participate in any plan for the reorganization,
consolidation or merger of any corporation or concern whose securities are held
by the Trust; to consent to any contract, lease, mortgage, purchase, or sale of
property by such corporation or concern; and to pay calls or subscriptions with
respect to any security held in the Trust;

(r) To compromise, arbitrate, or otherwise adjust claims in favor of or
against the Trust or any matter in controversy including, but not limited to,
claims for taxes;

(s) To make distributions of income and of capital gains to
Shareholders in the manner hereinafter provided for;

(t) To borrow money;

(u) To establish, from time to time, a minimum total investment for
Shareholders, and to require the redemption of the Shares of any Shareholders
whose investment is less than such minimum upon giving notice to such
Shareholder;

(v) To establish committees for such purposes, with such membership,
and with such responsibilities as the Trustees may consider proper, including a
committee consisting of fewer than all of the Trustees then in office, which may
act for and bind the Trustees and the Trust with respect to the institution,
prosecution, dismissal, settlement, review or investigation of any legal action,
suit or proceeding, pending or threatened;

(w) To issue, sell, repurchase, redeem, cancel, retire, acquire, hold,
resell, reissue, dispose of and otherwise deal in Shares; to establish terms and
conditions regarding the issuance, sale, repurchase, redemption, cancellation,
retirement, acquisition, holding, resale, reissuance, disposition of or dealing
in Shares; and, subject to Articles IV and V, to apply to any such repurchase,
redemption, retirement, cancellation or acquisition of Shares any funds or
property of the Trust or of the particular Series with respect to which such
Shares are issued; and

(x) To carry on any other business in connection with or incidental to
any of the foregoing powers, to do everything necessary or desirable to
accomplish any purpose or to further any of the foregoing powers, and to take
every other action incidental to the foregoing business or purposes, objects or
powers.

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<PAGE>

The clauses above shall be construed as objects and powers, and the
enumeration of specific powers shall not limit in any way the general powers of
the Trustees. Any action by one or more of the Trustees in their capacity as
such hereunder shall be deemed an action on behalf of the Trust or the
applicable Series, and not an action in an individual capacity. No one dealing
with the Trustees shall be under any obligation to make any inquiry concerning
the authority of the Trustees, or to see to the application of any payments made
or property transferred to the Trustees or upon their order. In construing this
Trust Instrument, the presumption shall be in favor of a grant of power to the
Trustees.

Section 2. CERTAIN TRANSACTIONS. Except as prohibited by applicable
law, the Trustees may, on behalf of the Trust, buy any securities from or sell
any securities to, or lend any assets of the Trust to, any Trustee or officer of
the Trust or any firm of which any such Trustee or officer is a member acting as
principal, or have any such dealings with any investment adviser, administrator,
distributor or transfer agent for the Trust or with any Interested Person of
such person. The Trust may employ any such person or entity in which such person
is an Interested Person, as broker, legal counsel, registrar, investment
adviser, administrator, distributor, transfer agent, dividend disbursing agent,
custodian or in any other capacity upon customary terms.

ARTICLE IV

SERIES: CLASSES: SHARES

Section 1. ESTABLISHMENT OF SERIES OR CLASS. The Trust shall consist of
one or more Series. The Trustees hereby establish the Series listed in Schedule
A attached hereto and made a part hereof. Each additional Series shall be
established by the adoption of a resolution of the Trustees. The Trustees may
designate the relative rights and preferences of the Shares of each Series. The
Trustees may divide the Shares of any Series into Classes. In such case each
Class of a Series shall represent interests in the assets of that Series and
have identical voting, dividend, liquidation and other rights and the same terms
and conditions, except as may be provided in the instrument establishing the
rights and preferences of the Class and except that expenses allocated to a
Class may be borne solely by such Class as determined by the Trustees and a
Class may have exclusive voting rights with respect to matters affecting only
that Class. The Trust shall maintain separate and distinct records for each
Series and hold and account for the assets thereof separately from the other
assets of the Trust or of any other Series. A Series may issue any number of
Shares and need not issue Shares. Each Share of a Series shall represent an
equal beneficial interest in the net assets of such Series. Each holder of
Shares of a Series shall be entitled to receive his pro rata share of all
distributions made with respect to such Series. Upon redemption of his Shares,
such Shareholder shall be paid solely out of the funds and property of such
Series. The Trustees may change the name of any Series or Class.

Section 2. SHARES. The beneficial interest in the Trust shall be
divided into Shares of one or more separate and distinct Series or Classes
established by the Trustees. The number of Shares of each Series and Class is
unlimited and

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<PAGE>

each Share shall have a par value of $0.00001 per Share. All Shares issued
hereunder shall be fully paid and nonassessable. Shareholders shall have no
preemptive or other right to subscribe to any additional Shares or other
securities issued by the Trust. The Trustees shall have full power and
authority, in their sole discretion and without obtaining Shareholder approval:
to issue original or additional Shares at such times and on such terms and
conditions as they deem appropriate; to issue fractional Shares and Shares held
in the treasury; to establish and to change in any manner Shares of any Series
or Classes with such preferences, terms of conversion, voting powers, rights and
privileges as the Trustees may determine (but the Trustees may not change
Outstanding Shares in a manner materially adverse to the Shareholders of such
Shares); to divide or combine the Shares of any Series or Classes into a greater
or lesser number; to classify or reclassify any unissued Shares of any Series or
Classes into one or more Series or Classes of Shares; to abolish any one or more
Series or Classes of Shares; to issue Shares to acquire other assets (including
assets subject to, and in connection with, the assumption of liabilities) and
businesses; and to take such other action with respect to the Shares as the
Trustees may deem desirable. Shares held in the treasury shall not confer any
voting rights on the Trustees and shall not be entitled to any dividends or
other distributions declared with respect to the Shares.

Section 3. INVESTMENT IN THE TRUST. The Trustees shall accept
investments in any Series from such persons and on such terms as they may from
time to time authorize. At the Trustees' discretion, such investments, subject
to applicable law, may be in the form of cash or securities in which that Series
is authorized to invest, valued as provided in Article V, Section 3. Investments
in a Series shall be credited to each Shareholder's account in the form of full
Shares at the Net Asset Value per Share next determined after the investment is
received or accepted as may be determined by the Trustees; provided, however,
that the Trustees may, in their sole discretion, (a) impose a sales charge upon
investments in any Series or Class, (b) issue fractional Shares, or (c)
determine the Net Asset Value per Share of the initial capital contribution. The
Trustees shall have the right to refuse to accept investments in any Series at
any time without any cause or reason therefor whatsoever.

Section 4. ASSETS AND LIABILITIES OF SERIES. All consideration received
by the Trust for the issue or sale of Shares of a particular Series, together
with all assets in which such consideration is invested or reinvested, all
income, earnings, profits, and proceeds thereof (including any proceeds derived
from the sale, exchange or liquidation of such assets, and any funds or payments
derived from any reinvestment of such proceeds in whatever form the same may
be), shall be held and accounted for separately from the other assets of the
Trust and every other Series and are referred to as "assets belonging to" that
Series. The assets belonging to a Series shall belong only to that Series for
all purposes, and to no other Series, subject only to the rights of creditors of
that Series. Any assets, income, earnings, profits, and proceeds thereof, funds,
or payments which are not readily identifiable as belonging to any particular
Series shall be allocated by the Trustees between and among one or more Series
as the Trustees deem fair and equitable. Each such allocation shall be
conclusive and binding upon the Shareholders of all Series for all purposes, and
such assets, earnings, income, profits or funds, or payments and proceeds
thereof shall be referred to as assets belonging to that Series. The assets
belonging to a Series shall be so recorded upon the books of the Trust, and
shall be held by the Trustees in

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trust for the benefit of the Shareholders of that Series. The assets belonging
to a Series shall be charged with the liabilities of that Series and all
expenses, costs, charges and reserves attributable to that series, except that
liabilities and expenses allocated solely to a particular Class shall be borne
by that Class. Any general liabilities, expenses, costs, charges or reserves of
the Trust which are not readily identifiable as belonging to any particular
Series or Class shall be allocated and charged by the Trustees between or among
any one or more of the Series or Classes in such manner as the Trustees deem
fair and equitable. Each such allocation shall be conclusive and binding upon
the Shareholders of all Series or Classes for all purposes.

Without limiting the foregoing, but subject to the right of the
Trustees to allocate general liabilities, expenses, costs, charges or reserves
as herein provided, the debts, liabilities, obligations and expenses incurred,
contracted for or otherwise existing with respect to a particular Series shall
be enforceable against the assets of such Series only, and not against the
assets of the Trust generally or of any other Series. Notice of this contractual
limitation on liabilities among Series may, in the Trustees' discretion, be set
forth in the certificate of trust of the Trust (whether originally or by
amendment) as filed or to be filed in the Office of the Secretary of State of
the State of Delaware pursuant to the Delaware Act, and upon the giving of such
notice in the certificate of trust, the statutory provisions of Section 3804 of
the Delaware Act relating to limitations on liabilities among Series (and the
statutory effect under Section 3804 of setting forth such notice in the
certificate of trust) shall become applicable to the Trust and each Series. Any
person extending credit to, contracting with or having any claim against any
Series may look only to the assets of that Series to satisfy or enforce any
debt, with respect to that Series. No Shareholder or former Shareholder of any
Series shall have a claim on or any right to any assets allocated or belonging
to any other Series.

Section 5. OWNERSHIP AND TRANSFER OF SHARES. The Trust shall maintain a
register containing the names and addresses of the Shareholders of each Series
and Class thereof, the number of Shares of each Series and Class held by such
Shareholders, and a record of all Share transfers. The register shall be
conclusive as to the identity of Shareholders of record and the number of Shares
held by them from time to time. The Trustees may authorize the issuance of
certificates representing Shares and adopt rules governing their use. The
Trustees may make rules governing the transfer of Shares, whether or not
represented by certificates.

Section 6. STATUS OF SHARES: LIMITATION OF SHAREHOLDER LIABILITY.
Shares shall be deemed to be personal property giving Shareholders only the
rights provided in this Trust Instrument. Every Shareholder, by virtue of having
acquired a Share, shall be held expressly to have assented to and agreed to be
bound by the terms of this Trust Instrument and to have become a party hereto.
No Shareholder shall be personally liable for the debts, liabilities,
obligations and expenses incurred by, contracted for, or otherwise existing with
respect to, the Trust or any Series. Neither the Trust nor the Trustees shall
have any power to bind any Shareholder personally or to demand payment from any
Shareholder for anything, other than as agreed by the Shareholder. Shareholders
shall have the same limitation of personal liability as is extended to
shareholders of a private

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corporation for profit incorporated in the State of Delaware. Every written
obligation of the Trust or any Series shall contain a statement to the effect
that such obligation may only be enforced against the assets of the Trust or
such Series; however, the omission of such statement shall not operate to bind
or create personal liability for any Shareholder or Trustee.

ARTICLE V

DISTRIBUTIONS AND REDEMPTIONS

Section 1. DISTRIBUTIONS. The Trustees may declare and pay dividends
and other distributions, including dividends on Shares of a particular Series
and other distributions from the assets belonging to that Series. The amount and
payment of dividends or distributions and their form, whether they are in cash,
Shares or other Trust Property, shall be determined by the Trustees. Dividends
and other distributions may be paid pursuant to a standing resolution adopted
once or more often as the Trustees determine. All dividends and other
distributions on Shares of a particular Series shall be distributed pro rata to
the Shareholders of that Series in proportion to the number of Shares of that
Series they held on the record date established for such payment, except that
such dividends and distributions shall appropriately reflect expenses allocated
to a particular Class of such Series. The Trustees may adopt and offer to
Shareholders such dividend reinvestment plans, cash dividend payout plans or
similar plans as the Trustees deem appropriate.

Section 2. REDEMPTIONS. Each Shareholder of a Series shall have the
right at such times as may be permitted by the Trustees to require the Series to
redeem all or any part of his Shares at a redemption price per Share equal to
the Net Asset Value per Share at such time as the Trustees shall have prescribed
by resolution. In the absence of such resolution, the redemption price per Share
shall be the Net Asset Value next determined after receipt by the Series of a
request for redemption in proper form less such charges as are determined by the
Trustees and described in the Trust's Registration Statement for that Series
under the Securities Act of 1933 or the 1940 Act. The Trustees may specify
conditions, prices, and places of redemption, and may specify binding
requirements for the proper form or forms of requests for redemption. Payment of
the redemption price may be wholly or partly in securities or other assets at
the value of such securities or assets used in such determination of Net Asset
Value, or may be in cash. Upon redemption, Shares may be reissued from time to
time. The Trustees may require Shareholders to redeem Shares for any reason
under terms set by the Trustees, including the failure of a Shareholder to
supply a personal identification number if required to do so, or to have the
minimum investment required, or to pay when due for the purchase of Shares
issued to him. To the extent permitted by law, the Trustees may retain the
proceeds of any redemption of Shares required by them for payment of amounts due
and owing by a Shareholder to the Trust or any Series or Class. Notwithstanding
the foregoing, the Trustees may postpone payment of the redemption price and may
suspend the right of the Shareholders to require any Series or Class to redeem
Shares during any period of time when and to the extent permissible under the
1940 Act.

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Section 3. DETERMINATION OF NET ASSET VALUE. The Trustees shall cause
the Net Asset Value of Shares of each Series or Class to be determined from time
to time in a manner consistent with applicable laws and regulations. The
Trustees may delegate the power and duty to determine Net Asset Value per Share
to one or more Trustees or officers of the Trust or to a custodian, depository
or other agent appointed for such purpose. The Net Asset Value of Shares shall
be determined separately for each Series or Class at such times as may be
prescribed by the Trustees or, in the absence of action by the Trustees, as of
the close of trading on the New York Stock Exchange on each day for all or part
of which such Exchange is open for unrestricted trading.

Section 4. SUSPENSION OF RIGHT OF REDEMPTION. If, as referred to in
Section 2 of this Article, the Trustees postpone payment of the redemption price
and suspend the right of Shareholders to redeem their Shares, such suspension
shall take effect at the time the Trustees shall specify, but not later than the
close of business on the business day next following the declaration of
suspension. Thereafter Shareholders shall have no right of redemption or payment
until the Trustees declare the end of the suspension. If the right of redemption
is suspended, a Shareholder may either withdraw his request for redemption or
receive payment based on the Net Asset value per Share next determined after the
suspension terminates.

Section 5. REDEMPTIONS NECESSARY FOR QUALIFICATION AS REGULATED
INVESTMENT COMPANY. If the Trustees shall determine that direct or indirect
ownership of Shares of any Series has or may become concentrated in any person
to an extent which would disqualify any Series as a regulated investment company
under the Internal Revenue Code, then the Trustees shall have the power (but not
the obligation) by lot or other means they deem equitable to (a) call for
redemption by any such person of a number, or principal amount, of Shares
sufficient to maintain or bring the direct or indirect ownership of Shares into
conformity with the requirements for such qualification and (b) refuse to
transfer or issue Shares to any person whose acquisition of Shares in question
would, in the Trustees' judgement, result in such disqualification. Any such
redemption shall be effected at the redemption price and in the manner provided
in this Article. Shareholders shall upon demand disclose to the Trustees in
writing such information concerning direct and indirect ownership of Shares as
the Trustees deem necessary to comply with the requirements of any taxing
authority.

ARTICLE VI

SHAREHOLDERS' VOTING POWERS AND MEETINGS

Section 1. VOTING POWERS. The Shareholders shall have power to vote
only with respect to (a) the removal of Trustees as provided in Article II,
Section 3(d); (b) any investment advisory or management contract as provided in
Article VII, Section 1; (c) any termination of the Trust as provided in Article
X, Section 5; (d) the amendment of this Trust Instrument to the extent and as
provided in Article X, Section 9; and (e) such additional matters relating to
the Trust as may be required or authorized by law, this Trust Instrument, or the
By-laws or any registration of the Trust with the Commission or any State, or as
the Trustees may consider desirable.

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On any matter submitted to a vote of the Shareholders, all Shares shall
be voted by individual Series or Class, except (a) when required by the 1940
Act, Shares shall be voted in the aggregate and not by individual Series or
Class, and (b) when the Trustees have determined that the matter affects the
interests of more than one Series or Class, then the Shareholders of all such
Series or Classes shall be entitled to vote thereon. Each whole Share shall be
entitled to one vote as to any matter on which it is entitled to vote, and each
fractional Share shall be entitled to a proportionate fractional vote. There
shall be no cumulative voting in the election of Trustees. Shares may be voted
in person or by proxy or in any manner provided for in the By-laws. The By-laws
may provide that proxies may be given by any electronic or telecommunications
device or in any other manner, but if a proposal by anyone other than the
officers or Trustees is submitted to a vote of the Shareholders of any Series or
Class, or if there is a proxy contest or proxy solicitation or proposal in
opposition to any proposal by the officers or Trustees, Shares may be voted only
in person or by written proxy. Until Shares of a Series are issued, as to that
Series the Trustees may exercise all rights of Shareholders and may take any
action required or permitted to be taken by Shareholders by law, this Trust
Instrument or the By- laws.

Section 2. MEETINGS OF SHAREHOLDERS. Special meetings of the
Shareholders of any Series or Class may be called by the Trustees and shall be
called by the Trustees upon the written request of Shareholders owning at least
ten percent of the Outstanding Shares of such Series or Class entitled to vote.
Shareholders shall be entitled to at least fifteen days' notice of any meeting,
given as determined by the Trustees.

Section 3. QUORUM; REQUIRED VOTE. One-third of the Outstanding Shares
of each Series or Class, or one-third of the Outstanding Shares of the Trust,
entitled to vote in person or by proxy shall be a quorum for the transaction of
business at a Shareholders' meeting with respect to such Series or Class, or
with respect to the entire Trust, respectively. Any lesser number shall be
sufficient for adjournments. Any adjourned session of a Shareholders' meeting
may be held within a reasonable time without further notice. Except when a
larger vote is required by law, this Trust Instrument or the By-laws, a majority
of the Outstanding Shares voted in person or by proxy shall decide any matters
to be voted upon with respect to the entire Trust and a plurality of such
Outstanding Shares shall elect a Trustee; provided, that if this Trust
Instrument or applicable law permits or requires that Shares be voted on any
matter by individual Series or Classes, then a majority of the Outstanding
Shares of that Series or Class (or, if required by law, a Majority Shareholder
Vote of that Series or Class) voted in person or by proxy voted on the matter
shall decide that matter insofar as that Series or Class is concerned.
Shareholders may act as to the Trust or any Series or Class by the written
consent of a majority (or such greater amount as may be required by applicable
law) of the Outstanding Shares of the Trust or of such Series or Class, as the
case may be.

ARTICLE VII

CONTRACTS WITH SERVICE PROVIDERS

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Section 1. INVESTMENT ADVISER. Subject to a Majority Shareholder Vote,
the Trustees may enter into one or more investment advisory contracts on behalf
of the Trust or any Series, providing for investment advisory services,
statistical and research facilities and services, and other facilities and
services to be furnished to the Trust or Series on terms and conditions
acceptable to the Trustees. Any such contract may provide for the investment
adviser to effect purchases, sales or exchanges of portfolio securities or other
Trust Property on behalf of the Trustees or may authorize any officer or agent
of the Trust to effect such purchases, sales or exchanges pursuant to
recommendations of the investment adviser. The Trustees may authorize the
investment adviser to employ one or more sub-advisers.

Section 2. PRINCIPAL UNDERWRITER. The Trustees may enter into contracts
on behalf of the Trust or any Series or Class, providing for the distribution
and sale of Shares by the other party, either directly or as sales agent, on
terms and conditions acceptable to the Trustees. The Trustees may adopt a plan
or plans of distribution with respect to Shares of any Series or Class and enter
into any related agreements, whereby the Series or Class finances directly or
indirectly any activity that is primarily intended to result in sales of its
Shares, subject to the requirements of Section 12 of the 1940 Act, Rule 12b-1
thereunder, and other applicable rules and regulations.

Section 3. TRANSFER AGENCY, SHAREHOLDER SERVICES, AND ADMINISTRATION
AGREEMENTS. The Trustees, on behalf of the Trust or any Series or Class, may
enter into transfer agency agreements, Shareholder service agreements, and
administration and management agreements with any party or parties on terms and
conditions acceptable to the Trustees.

Section 4. CUSTODIAN. The Trustees shall at all times place and
maintain the securities and similar investments of the Trust and of each Series
in custody meeting the requirements of Section 17(f) of the 1940 Act and the
rules thereunder. The Trustees, on behalf of the Trust or any Series, may enter
into an agreement with a custodian on terms and conditions acceptable to the
Trustees, providing for the custodian, among other things, to (a) hold the
securities owned by the Trust or any Series and deliver the same upon written
order or oral order confirmed in writing, (b) to receive and receipt for any
moneys due to the Trust or any Series and deposit the same in its own banking
department or elsewhere, (c) to disburse such funds upon orders or vouchers, and
(d) to employ one or more sub-custodians.

Section 5. PARTIES TO CONTRACTS WITH SERVICE PROVIDERS. The Trustees
may enter into any contract referred to in this Article with any entity,
although one or more of the Trustees or officers of the Trust may be an officer,
director, trustee, partner, shareholder, or member of such entity, and no such
contract shall be invalidated or rendered void or voidable because of such
relationship. No person having such a relationship shall be disqualified from
voting on or executing a contract in his capacity as Trustee and/or Shareholder,
or be liable merely by reason of such relationship for any loss or expense to
the Trust with respect to such a contract or accountable for any profit realized
directly or indirectly therefrom; provided, that the contract was reasonable and
fair and not inconsistent with this Trust Instrument or the By-laws.

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Any contract referred to in Sections 1 and 2 of this Article shall be
consistent with and subject to the applicable requirements of Section 15 of the
1940 Act and the rules and orders thereunder with respect to its continuance in
effect, its termination, and the method of authorization and approval of such
contract or renewal. No amendment to a contract referred to in Section 1 of this
Article shall be effective unless assented to in a manner consistent with the
requirements of Section 15 of the 1940 Act, and the rules and orders thereunder.

ARTICLE VIII

EXPENSES OF THE TRUST AND SERIES

Subject to Article IV, Section 4, the Trust or a particular Series
shall pay, or shall reimburse the Trustees from the Trust estate or the assets
belonging to the particular Series, for their expenses and disbursements,
including, but not limited to, interest charges, taxes, brokerage fees and
commissions; expenses of issue, repurchase and redemption of Shares; certain
insurance premiums; applicable fees, interest charges and expenses of third
parties, including the Trust's investment advisers, managers, administrators,
distributors, custodians, transfer agents and fund accountants; fees of pricing,
interest, dividend, credit and other reporting services; costs of membership in
trade associations; telecommunications expenses; funds transmission expenses;
auditing, legal and compliance expenses; costs of forming the Trust and its
Series and maintaining its existence; costs of preparing and printing the
prospectuses of the Trust and each Series, statements of additional information
and Shareholder reports and delivering them to Shareholders; expenses of
meetings of Shareholders and proxy solicitations therefor; costs of maintaining
books and accounts; costs of reproduction, stationery and supplies; fees and
expenses of the Trustees; compensation of the Trust's officers and employees and
costs of other personnel performing services for the Trust or any Series; costs
of Trustee meetings; Commission registration fees and related expenses; state or
foreign securities laws registration fees and related expenses; and for such
non-recurring items as may arise, including litigation to which the Trust or a
Series (or a Trustee or officer of the Trust acting as such) is a party, and for
all losses and liabilities by them incurred in administering the Trust. The
Trustees shall have a lien on the assets belonging to the appropriate Series, or
in the case of an expense allocable to more than one Series, on the assets of
each such Series, prior to any rights or interests of the Shareholders thereto,
for the reimbursement to them of such expenses, disbursements, losses and
liabilities.

ARTICLE IX

LIMITATION OF LIABILITY AND INDEMNIFICATION

Section 1. LIMITATION OF LIABILITY. All persons contracting with or
having any claim against the Trust or a particular Series shall look only to the
assets of the Trust or such Series for payment under such contract or claim; and
neither the Trustees nor any of the Trust's officers, employees or agents,
whether past, present or future, shall be personally liable therefor. Every
written instrument or obligation on behalf of the Trust or any Series shall
contain a statement to

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<PAGE>

the foregoing effect, but the absence of such statement shall not operate to
make any Trustee or officer of the Trust liable thereunder. Provided they have
exercised reasonable care and have acted under the reasonable belief that their
actions are in the best interest of the Trust, the Trustees and officers of the
Trust shall not be responsible or liable for any act or omission or for neglect
or wrongdoing of them or any officer, agent, employee, investment adviser or
independent contractor of the Trust, but nothing contained in this Trust
Instrument or in the Delaware Act shall protect any Trustee or officer of the
Trust against liability to the Trust or to Shareholders to which he would
otherwise be subject by reason of willful misfeasance, bad faith, gross
negligence or reckless disregard of the duties involved in the conduct of his
office.

Section 2. INDEMNIFICATION. (a) Subject to the exceptions and
limitations contained in subsection (b) below:

(i) every person who is, or has been, a Trustee or an officer,
employee or agent of the Trust ("Covered Person") shall be
indemnified by the Trust or the appropriate Series to the
fullest extent permitted by law against liability and against
all expenses reasonably incurred or paid by him in connection
with any claim, action, suit or proceeding in which he becomes
involved as a party or otherwise by virtue of his being or
having been a Covered Person and against amounts paid or
incurred by him in the settlement thereof;

(ii) as used herein, the words "claim, "action," "suit," or
"proceeding" shall apply to all claims, actions, suits or
proceedings (civil, criminal or other, including appeals),
actual or threatened, and the words "liability" and "expenses"
shall include, without limitation, attorneys' fees, costs,
judgments, amounts paid in settlement, fines, penalties and
other liabilities.

(b) No indemnification shall be provided hereunder to a Covered
Person:

(i) who shall have been adjudicated by a court or body before
which the proceeding was brought (A) to be liable to the Trust
or its Shareholders by reason of willful misfeasance, bad
faith, gross negligence or reckless disregard of the duties
involved in the conduct of his office, or (B) not to have
acted in good faith in the reasonable belief that his action
was in the best interest of the Trust; or

(ii) in the event of a settlement, unless there has been a
determination that such Covered Person did not engage in
willful misfeasance, bad faith, gross negligence or reckless
disregard of the duties involved in the conduct of his office;
(A) by the court or other body approving the settlement; (B)
by at least a majority of those Trustees who are neither
Interested Persons of the Trust nor are parties to the matter
based upon a review of readily available facts (as opposed to
a full trial-type inquiry); or (C) by written opinion of
independent legal counsel based upon a review of readily
available facts (as opposed to a full trial-type inquiry).

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(c) The rights of indemnification herein provided may be insured
against by policies maintained by the Trust, shall be severable, shall not be
exclusive of or affect any other rights to which any Covered Person may now or
hereafter be entitled, and shall inure to the benefit of the heirs, executors
and administrators of a Covered Person.

(d) To the maximum extent permitted by applicable law, expenses in
connection with the preparation and presentation of a defense to any claim,
action, suit or proceeding of the character described in subsection (a) of this
Section may be paid by the Trust or applicable Series from time to time prior to
final disposition thereof upon receipt of an undertaking by or on behalf of such
Covered Person that such amount will be paid over by him to the Trust or
applicable Series if it is ultimately determined that he is not entitled to
indemnification under this Section; provided, however, that either (i) such
Covered Person shall have provided appropriate security for such undertaking,
(ii) the Trust is insured against losses arising out of any such advance
payments or (iii) either a majority of the Trustees who are neither Interested
Persons of the Trust nor parties to the matter, or independent legal counsel in
a written opinion, shall have determined, based upon a review of readily
available facts (as opposed to a full trial-type inquiry) that there is reason
to believe that such Covered Person will not be disqualified from
indemnification under this Section.

(e) Any repeal or modification of this Article IX by the Shareholders
of the Trust, or adoption or modification of any other provision of the Trust
Instrument or By-laws inconsistent with this Article, shall be prospective only,
to the extent that such repeal or modification would, if applied
retrospectively, adversely affect any limitation on the liability of any Covered
Person or indemnification available to any Covered Person with respect to any
act or omission which occurred prior to such repeal, modification or adoption.

Section 3. INDEMNIFICATION OF SHAREHOLDERS. If any Shareholder or
former Shareholder of any Series shall be held personally liable solely by
reason of his being or having been a Shareholder and not because of his acts or
omissions or for some other reason, the Shareholder or former Shareholder (or
his heirs, executors, administrators or other legal representatives or in the
case of any entity, its general successor) shall be entitled out of the assets
belonging to the applicable Series to be held harmless from and indemnified
against all loss and expense arising from such liability. The Trust, on behalf
of the affected Series, shall, upon request by such Shareholder, assume the
defense of any claim made against such Shareholder for any act or obligation of
the Series and satisfy any judgment thereon from the assets of the Series.

ARTICLE X

MISCELLANEOUS

Section 1. TRUST NOT A PARTNERSHIP. This Trust Instrument creates a
trust and not a partnership. No Trustee shall have any power to bind personally
either the Trust's officers or any Shareholder.

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Section 2. TRUSTEE ACTION; EXPERT ADVICE; NO BOND OR SURETY. The
exercise by the Trustees of their powers and discretion hereunder in good faith
and with reasonable care under the circumstances then prevailing shall be
binding upon everyone interested. Subject to the provisions of Article IX,, the
Trustees shall not be liable for errors of judgment or mistakes of fact or law.
The Trustees may take advice of counsel or other experts with respect to the
meaning and operation of this Trust Instrument, and subject to the provisions of
Article IX, shall not be liable for any act or omission in accordance with such
advice or for failing to follow such advice. The Trustees shall not be required
to give any bond as such, nor any surety if a bond is obtained.

Section 3. DERIVATIVE ACTIONS. Shareholders shall have the right to
bring derivative actions to the extent provided in the Delaware Act; PROVIDED,
however, that except as required under the 1940 Act, no derivative action may be
brought unless Shareholders owning not less than 10% of the outstanding Shares
of all Series of the Trust, or of the affected Series of the Trust, as the case
may be, join in the bringing of such derivative action.

Section 4. RECORD DATES. The Trustees may fix in advance a date up to
ninety (90) days before the date of any Shareholders' meeting, or the date for
the payment of any dividends or other distributions, or the date for the
allotment of rights, or the date when any change or conversion or exchange of
Shares shall go into effect as a record date for the determination of the
Shareholders entitled to notice of, and to vote at, any such meeting, or
entitled to receive payment of such dividend or other distribution, or to
receive any such allotment of rights, or to exercise such rights in respect of
any such change, conversion or exchange of Shares.

Section 5. TERMINATION OF THE TRUST. (a) This Trust shall have perpetual
existence. Subject to a Majority Shareholder Vote of the Trust or of each Series
to be affected, the Trustees may

(i) sell and convey all or substantially all of the assets of the
Trust or any affected Series to another Series or to another
entity which is an open-end investment company as defined in
the 1940 Act, or is a series thereof, for adequate
consideration, which may include the assumption of all
outstanding obligations, taxes and other liabilities, accrued
or contingent, of the Trust or any affected Series, and which
may include shares of or interests in such Series, entity, or
series thereof; or

(ii) at any time sell and convert into money all or substantially
all of the assets of the Trust or any affected,Series.

Upon making reasonable provision for the payment of all known liabilities of the
Trust or any affected Series in either (i) or (ii), by such assumption or
otherwise, the Trustees shall distribute the remaining proceeds or assets (as
the case may be) ratably among the Shareholders of the Trust or any affected
Series; however, the payment to any particular Class of such Series may be
reduced by any fees, expenses or charges allocated to that Class.

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(b) The Trustees may take any of the actions specified in subsection
(a) (i) and (ii) above without obtaining a Majority Shareholder Vote of the
Trust or any Series if a majority of the Trustees determines that the
continuation of the Trust or Series is not in the best interests of the Trust,
such Series, or their respective Shareholders as a result of factors or events
adversely affecting the ability of the Trust or such Series to conduct its
business and operations in an economically viable manner. Such factors and
events may include the inability of the Trust or a Series to maintain its assets
at an appropriate size, changes in laws or regulations governing the Trust or
the Series or affecting assets of the type in which the Trust or Series invests,
or economic developments or trends having a significant adverse impact on the
business or operations of the Trust or such Series.

(c) Upon completion of the distribution of the remaining proceeds or
assets pursuant to subsection (a), the Trust or affected Series shall terminate
and the Trustees and the Trust shall be discharged of any and all further
liabilities and duties hereunder with respect thereto and the right, title and
interest of all parties therein shall be canceled and discharged. Upon
termination of the Trust, following completion of winding up of its business,
the Trustees shall cause a certificate of cancellation of the Trust's
certificate of trust to be filed in accordance with the Delaware Act, which
certificate of cancellation may be signed by any one Trustee.

Section 6. REORGANIZATION. Notwithstanding anything else herein, to
change the Trust's form of organization the Trustees may, without Shareholder
approval, (a) cause the Trust to merge or consolidate with or into one or more
entities, if the surviving or resulting entity is the Trust or another open-end
management investment company registered under the 1940 Act, or a series
thereof, that will succeed to or assume the Trust's registration under the 1940
Act, or (b) cause the Trust to incorporate under the laws of the State of
Delaware. Any agreement of merger or consolidation or certificate of merger may
be signed by a majority of Trustees and facsimile signatures conveyed by
electronic or telecommunication means shall be valid.

Pursuant to and in accordance with the provisions of Section 3815 (f)
of the Delaware Act, an agreement of merger or consolidation approved by the
Trustees in accordance with this Section may effect any amendment to the Trust
Instrument or effect the adoption of a new trust instrument of the Trust if it
is the surviving or resulting trust in the merger or consolidation.

Section 7. TRUST INSTRUMENT. The original or a copy of this Trust
Instrument and of each amendment hereto or Trust Instrument supplemental shall
be kept at the office of the Trust where it may be inspected by any Shareholder.
Anyone dealing with the Trust may rely on a certificate by a Trustee or an
officer of the Trust as to the authenticity of the Trust Instrument or any such
amendments or supplements and as to any matters in connection with the Trust.
The masculine gender herein shall include the feminine and neuter genders.
Headings herein are for convenience only and shall not affect the construction
of this Trust Instrument. This Trust Instrument may be executed in any number of
counterparts, each of which shall be deemed an original.

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Section 8. APPLICABLE LAW. This Trust Instrument and the Trust created
hereunder are governed by and construed and administered according to the
Delaware Act and the applicable laws of the State of Delaware; provided,
however, that there shall not be applicable to the Trust, the Trustees or this
Trust Instrument (a) the provisions of Section 3540 of Title 12 of the Delaware
Code, or (b) any provisions of the laws (statutory or common) of the State of
Delaware (other than the Delaware Act) pertaining to trusts which relate to or
regulate (i) the filing with any court or governmental body or agency of trustee
accounts or schedules of trustee fees and charges, (ii) affirmative requirements
to post bonds for trustees, officers, agents or employees of a trust, (iii) the
necessity for obtaining court or other governmental approval concerning the
acquisition, holding or disposition of real or personal property, (iv) fees or
other sums payable to trustees, officers, agents or employees of a trust, (v)
the allocation of receipts and expenditures to income or principal, (vi)
restrictions or limitations on the permissible nature, amount or concentration
of trust investments or requirements relating to the titling, storage or other
manner of holding of trust assets, or (vii) the establishment of fiduciary or
other standards of responsibilities or limitations on the acts or powers of
trustees, which are inconsistent with the limitations or liabilities or
authorities and powers of the Trustees set forth or referenced in this Trust
Instrument. The Trust shall be of the type commonly called a Delaware business
trust, and, without limiting the provisions hereof, the Trust may exercise all
powers which are ordinarily exercised by such a trust under Delaware law. The
Trust specifically reserves the right to exercise any of the powers or
privileges afforded to trusts or actions that may be engaged in by trusts under
the Delaware Act, and the absence of a specific reference herein to any such
power, privilege or action shall not imply that the Trust may not exercise such
power or privilege or take such actions.

Section 9. AMENDMENTS. The Trustees may, without any Shareholder vote,
amend or otherwise supplement this Trust Instrument by making an amendment, a
Trust Instrument supplemental hereto or an amended and restated trust
instrument; provided, that Shareholders shall have the right to vote on any
amendment (a) which would affect the voting rights of Shareholders granted in
Article VI, Section 1, (b) to this Section, (c) required to be approved by
Shareholders by law or by the Trust's registration statement(s) filed with the
Commission, and (d) submitted to them by the Trustees in their discretion. Any
amendment submitted to Shareholders which the Trustees determine would affect
the Shareholders of any Series shall be authorized by vote of the Shareholders
of such Series and no vote shall be required of Shareholders of a Series not
affected. Notwithstanding anything else herein, any amendment to Article IX
which would have the effect of reducing the indemnification and other rights
provided thereby to Trustees, officers, employees, and agents of the Trust or to
Shareholders or former Shareholders, and any repeal or amendment of this
sentence shall each require the affirmative vote of the holders of two-thirds of
the outstanding Shares of the Trust entitled to vote thereon.

Section 10. FISCAL YEAR. The fiscal year of the Trust shall end on a
specified date as set forth in the By-Laws. The Trustees may change such fiscal
year without Shareholder approval.

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Section 11. SEVERABILITY. The provisions of this Trust Instrument are
severable. If the Trustees determine, with the advice of counsel, that any
provision hereof conflicts with the 1940 Act, the regulated investment company
provisions of the Internal Revenue Code or with other applicable laws and
regulations, the conflicting provision shall be deemed never to have constituted
a part of this Trust Instrument; provided, however, that such determination
shall not affect any of the remaining provisions of this Trust Instrument or
render invalid or improper any action taken or omitted prior to such
determination. If any provision hereof shall be held invalid or unenforceable in
any jurisdiction, such invalidity or unenforceability shall attach only to such
provision only in such jurisdiction and shall not affect any other provision of
this Trust Instrument.

IN WITNESS WHEREOF, the undersigned initial Trustee has executed this
Trust Instrument as of the date first above written.

/S/ ANDRES E. SALDANA
Andres E. Saldana, as
Trustee and not individually

Commonwealth of Massachusetts)
) S.S.
County of Suffolk )

Then personally appeared the above named Andres E. Saldana and
acknowledged the foregoing instrument to be his free act and deed, before me,
Mark Pietkiewicz, Notary Public.

/S/ MARK PIETKIEWICZ
Mark Pietkiewicz, Notary Public

My Commission Expires January 24, 1997

[SEAL]

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SCHEDULE A

Excelsior Equity Index Fund
Excelsior Bond Index Fund
Excelsior Small Capitalization Fund
Excelsior Balanced Fund
Excelsior Equity Growth Fund
Excelsior Value Equity Income Fund
Excelsior Fixed Income (Income) Fund
Excelsior Fixed Income (Total Return) Fund
Excelsior Equity (Total Return) Fund
Excelsior Income and Growth Fund
Excelsior International Equity Fund
Excelsior Socially Responsible Fund

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Exhibit 1(a)

AMENDED AND RESTATED SCHEDULE A
TO TRUST INSTRUMENT DATED APRIL 27, 1994
OF EXCELSIOR INSTITUTIONAL TRUST

DATED AS OF JUNE 9, 1994

Excelsior Institutional Equity Index Fund1 Excelsior Institutional Bond Index
Fund2 Excelsior Institutional Small Capitalization Fund3 Excelsior Institutional
Balanced Fund4 Excelsior Institutional Equity Growth Fund5 Excelsior
Institutional Value Equity Income Fund6 Excelsior Institutional Income Fund7
Excelsior Institutional Total Return Bond Fund8 Excelsior Institutional Equity
Fund9 Excelsior Institutional Income and Growth Fund10 Excelsior Institutional
International Equity Fund11 Excelsior Institutional Socially Responsible Fund12

- --------
1Formerly, Excelsior Equity Index Fund.
2Formerly, Excelsior Bond Index Fund.
3Formerly, Excelsior Small Capitalization Fund.
4Formerly, Excelsior Balanced Fund.
5Formerly, Excelsior Equity Growth Fund.
6Formerly, Excelsior Value Equity Income Fund.
7Formerly, Excelsior Fixed Income (Income) Fund.
8Formerly, Excelsior Fixed Income (Total Return) Fund.
9Formerly, Excelsior Equity (Total Return) Fund.
10Formerly, Excelsior Income and Growth Fund.
11Formerly, Excelsior International Equity Fund.
12Formerly, Excelsior Socially Responsible Fund.

-1-

<PAGE>

IN WITNESS WHEREOF, the undersigned initial Trustee of Excelsior
Institutional Trust (the "Trust") has executed this Amended and Restated
Schedule A to the Trust Instrument of the Trust as of the date first above
written.

/S/ ANDRES E. SALDANA
Andres E. Saldana, as
Trustee and not individually

Commonwealth of Massachusetts)
) S.S.
County of Suffolk )

Then personally appeared the above named Andres E. Saldana and
acknowledged the foregoing instrument to be his free act and deed, before me,
Mark Pietkiewicz, Notary Public, on the 9th day of June, 1994.

/S/ MARK PIETKIEWICZ
Mark Pietkiewicz, Notary Public

My Commission Expires January 24, 1997

[SEAL]

-2-

Exhibit 2

BY-LAWS

EXCELSIOR INSTITUTIONAL TRUST

These By-laws of Excelsior Institutional Trust (the "Trust"), a
Delaware business trust, are subject to the Trust Instrument of the Trust dated
April 27, 1994, as from time to time amended, supplemented or restated (the
"Trust Instrument"). Capitalized terms used herein have the same meanings as in
the Trust Instrument.

ARTICLE I
PRINCIPAL OFFICE AND SEAL

Section 1. PRINCIPAL OFFICE. The principal office of the Trust shall be located
in Boston, Massachusetts, or such other location as the Trustees determine. The
Trust may establish and maintain other offices and places of business as the
Trustees determine.

Section 2. SEAL. The Trustees may adopt a seal for the Trust in such form and
with such inscription as the Trustees determine. Any Trustee or officer of the
Trust shall have authority to affix the seal to any document.

ARTICLE II
MEETINGS OF TRUST

Section 1. ACTION BY TRUSTEES. Trustees may take actions at meetings held at
such places and times as the Trustees may determine, or without meetings, all as
provided in Article II, Section 7, of the Trust Instrument.

Section 2. COMPENSATION OF TRUSTEES. Each Trustee who is neither an employee of
an investment adviser of the Trust or any Series nor an employee of an entity
affiliated with the investment adviser may receive such compensation from the
Trust for services and reimbursement for expenses as the Trustees may determine.

ARTICLE III
COMMITTEES AND ADVISORY BOARD

Section 1. EXECUTIVE AND OTHER COMMITTEES. The Trustees by vote of a majority of
all the Trustees may elect from their own number an Executive Committee to
consist of not less than three Trustees to hold office at the pleasure of the
Trustees. While the Trustees are not in session, the Executive Committee shall
have the power to conduct the current and ordinary business of the Trust,
including the purchase and sale of securities and the designation of securities
to be delivered upon redemption of Shares of the Trust, and such other powers of

-1-

<PAGE>

the Trustees as the Trustees may, from time to time, delegate to the Executive
Committee except those powers which by law, the Instrument or these By-Laws the
Trustees are prohibited from so delegating. The Trustees may also elect from
their own number other Committees from time to time, the number composing such
Committees, the powers conferred upon the same (subject to the same limitations
as with respect to the Executive Committee) and the term of membership on such
Committees to be determined by the Trustees. The Trustees may designate a
chairman of any such Committee. In the absence of such designation a Committee
may elect its own chairman. The Trustees may abolish any Committee at any time.
The Trustees shall have power to rescind any action of any Committee, but no
such rescission shall have retroactive effect.

Section 2. MEETING, QUORUM AND MANNER OF ACTING. The Trustees may (i) provide
for stated meetings of any Committee, (ii) specify the manner of calling and
notice required for special meetings of any Committee, (iii) specify the number
of members of a Committee required to constitute a quorum and the number of
members of a Committee required to exercise specified powers delegated to such
Committee, (iv) authorize the making of decisions to exercise specified powers
by written assent of the requisite number of members of a Committee without a
meeting, and (v) authorize the members of a Committee to meet by means of a
telephone conference circuit. Unless the Trustees so provide, all the Committees
shall be governed by the same rules as is the full Board.

Each Committee may, but is not required to, keep regular minutes of its
meetings and records of decisions taken without a meeting and cause them to be
recorded in a book designated for that purpose and kept in the office of the
Trust.

Section 3. ADVISORY BOARD. The Trustees may appoint an Advisory Board to consist
in the first instance of not less than three members. Members of such Advisory
Board shall not be Trustees or officers and need not be Shareholders. A member
of such Advisory Board shall hold office for such period as the Trustees may by
vote provide and may resign therefrom by a written instrument signed by him
which shall take effect upon its delivery to the Trustees. The Advisory Board
shall have no legal powers and shall not perform the functions of Trustees in
any manner, such Advisory Board being intended merely to act in an advisory
capacity. Such Advisory Board shall meet at such times and upon such notice as
the Trustees may by vote provide.

Section 4. CHAIRMAN. The Trustees may, by a majority vote of all the Trustees,
elect from their own number a Chairman, to hold office until his successor shall
have been duly elected and qualified. The Chairman shall not hold any other
office. The Chairman may be, but need not be, a Shareholder. The Chairman shall
preside at all meetings of the Trustees and shall have such other duties as from
time to time may be assigned to him by the Trustees.

ARTICLE IV
OFFICERS

Section 1. GENERAL PROVISIONS. The officers of the Trust shall be a President,
a Treasurer and a Secretary, each of whom shall be elected by the Trustees. The

-2-

<PAGE>

Trustees may elect or appoint such other officers or agents as the business of
the Trust may require, including one or more Vice Presidents, one or more
Assistant Treasurers, and one or more Assistant Secretaries. The Trustees may
delegate to any officer or committee the power to appoint any subordinate
officers or agents.

Section 2. TERM OF OFFICE AND QUALIFICATIONS. Except as otherwise provided by
law, the Instrument or these By-Laws, the President, the Treasurer and the
Secretary shall hold office until his respective successor shall have been duly
elected and qualified, and all other officers shall hold office at the pleasure
of the Trustees. The Secretary and Treasurer may be the same person. A Vice
President and the Treasurer or a Vice President and the Secretary may be the
same person, but the offices of Vice President, Secretary and Treasurer shall
not be held by the same person. Except as above provided, any two offices may be
held by the same person. Any officer may be, but does not need be, a Trustee or
Shareholder.

Section 3. REMOVAL. The Trustees, at any regular or special meeting of the
Trustees, may remove any officer with or without cause by a vote of a majority
of the Trustees. Any officer or agent appointed by any officer or committee may
be removed with or without cause by such appointing officer or committee.

Section 4. POWERS AND DUTIES OF THE PRESIDENT. The President, unless the
Chairman, if any, is so appointed by the Trustees, shall be the principal
executive officer of the Trust. Subject to the control of the Trustees and any
committee of the Trustees, the President shall at all times exercise a general
supervision and direction over the affairs of the Trust. The President shall
have the power to employ attorneys and counsel for the Trust and to employ such
subordinate officers, agents, clerks and employees as he may find necessary to
transact the business of the Trust. The President shall also have the power to
grant, issue, execute or sign such powers of attorney, proxies or other
documents as may be deemed advisable or necessary in the furtherance of the
interests of the Trust. The President shall have such other powers and duties
as, from time to time, may be conferred upon or assigned to him by the Trustees.

Section 5. POWERS AND DUTIES OF VICE PRESIDENTS. In the absence or disability of
the President, the Vice President or, if there are more than one Vice President,
any Vice President designated by the Trustees shall perform all the duties and
may exercise any of the powers of the President, subject to the control of the
Trustees. Each Vice President shall perform such other duties as may be assigned
to him from time to time by the Trustees or the President.

Section 6. POWERS AND DUTIES OF THE TREASURER. The Treasurer shall be the
principal financial and accounting officer of the Trust. The Treasurer shall
deliver all funds of the Trust which may come into his hands to such custodian
as the Trustees may employ pursuant to Article X hereof. The Treasurer shall
render a statement of condition of the finances of the Trust to the Trustees as
often as they shall require the same and shall in general perform all the duties
incident to the office of Treasurer and such other duties as from time to time
may be assigned to him by the Trustees. The Treasurer shall give a bond for the
faithful discharge of his duties, if required to do so by the Trustees, in such
sum and with such surety or sureties as the Trustees shall require. The

-3-

<PAGE>

Treasurer shall be responsible for the general supervision of the Trust's funds
and property and for the general supervision of the Trust's custodian.

Section 7. POWERS AND DUTIES OF THE SECRETARY. The Secretary shall keep the
minutes of all meetings of the Shareholders in proper books provided for that
purpose; shall keep the minutes of all meetings of the Trustees; shall have
custody of the seal of the Trust; and shall have charge of the Share transfer
books, lists and records unless the same are in the charge of the Transfer
Agent. The Secretary shall attend to the giving and serving of all notices by
the Trust in accordance with the provisions of these By-Laws and as required by
law; and subject to these By-Laws, shall in general perform all the duties
incident to the office of Secretary and such other duties as from time to time
may be assigned to him by the Trustees.

Section 8. POWERS AND DUTIES OF ASSISTANT TREASURERS. In the absence or
disability of the Treasurer, any Assistant Treasurer designated by the Trustees
shall perform all the duties, and may exercise any of the powers, of the
Treasurer. Each Assistant Treasurer shall perform such other duties as from time
to time may be assigned to him by the Trustees. Each Assistant Treasurer shall
give a bond for the faithful discharge of his duties, if required to do so by
the Trustees, in such sum and with such surety or sureties as the Trustees shall
require.

Section 9. POWERS AND DUTIES OF ASSISTANT SECRETARIES. In the absence or
disability of the Secretary, any Assistant Secretary designated by the Trustees
shall perform all of the duties, and may exercise any of the powers, of the
Secretary. Each Assistant Secretary shall perform such other duties as from time
to time may be assigned to him by the Trustees.

Section 10. COMPENSATION OF OFFICERS AND TRUSTEES AND MEMBERS OF THE ADVISORY
BOARD. Subject to any applicable law or provision of the Instrument, the
compensation of the officers and Trustees and members of the Advisory Board
shall be fixed from time to time by the Trustees or, in the case of officers, by
any committee of officers upon whom such power may be conferred by the Trustees.
No officer shall be prevented from receiving such compensation as such officer
by reason of the fact that he is also a Trustee.

Section 11. EXECUTION OF PAPERS. Except as the Trustees may generally or in
particular cases authorize, all deeds, leases, transfers, contracts, bonds,
notes, checks, drafts and other obligations made, accepted or endorsed by the
Trust shall be executed by the President, any Vice President, or the Treasurer,
or by whomever else shall be designated for that purpose by the Trustees, and
need not bear the seal of the Trust.

ARTICLE V
MEETINGS OF SHAREHOLDERS

Section 1. NO ANNUAL MEETINGS. There shall be no annual Shareholders'
meetings, unless required by law.

-4-

<PAGE>

Section 2. SPECIAL MEETINGS. The Secretary shall call a special meeting of
Shareholders of any Series or Class whenever ordered by the Trustees.

The Secretary also shall call a special meeting of Shareholders of any
Series or Class upon the written request of Shareholders owning at least ten
percent of the Outstanding Shares of such Series or Class entitled to vote at
such meeting; provided, that (1) such request shall state the purposes of such
meeting and the matters proposed to be acted on, and (2) the Shareholders
requesting such meeting shall have paid to the Trust the reasonably estimated
cost of preparing and mailing the notice thereof, which the Secretary shall
determine and specify to such Shareholders. If the Secretary fails for more than
thirty days to call a special meeting when required to do so, the Trustees or
the Shareholders requesting such a meeting may, in the name of the Secretary,
call the meeting by giving the required notice. The Secretary shall not call a
special meeting upon the request of Shareholders of any Series or Class to
consider any matter that is substantially the same as a matter voted upon at any
special meeting of Shareholders of such Series or Class held during the
preceding twelve months, unless requested by the holders of a majority of the
outstanding Shares of such Series or Class entitled to be voted at such meeting.

A special meeting of Shareholders of any series or Class shall be held
at such time and place as is determined by the Trustees and stated in the notice
of that meeting.

Section 3. NOTICE OF MEETINGS; WAIVER. The Secretary shall call a special
meeting of Shareholders by giving written notice of the place, date, time, and
purposes of that meeting at least fifteen days before the date of such meeting.
The Secretary may deliver or mail, postage prepaid, the written notice of any
meeting to each Shareholder entitled to vote at such meeting. If mailed, notice
shall be deemed to be given when deposited in the United States mail directed to
the Shareholder at his or her address as it appears on the records of the Trust.

Section 4. ADJOURNED MEETINGS. A Shareholders, meeting may be adjourned one or
more times for any reason, including the failure of a quorum to attend the
meeting. No notice of adjournment of a meeting to another time or place need be
given to Shareholders if such time and place are announced at the meeting at
which the adjournment is taken or reasonable notice is given to persons present
at the meeting, and if the adjourned meeting is held within a reasonable time
after the date set for the original meeting. Any business that might have been
transacted at the original meeting may be transacted at any adjourned meeting.
If after the adjournment a new record date is fixed for the adjourned meeting,
the Secretary shall give notice of the adjourned meeting to Shareholders of
record entitled to vote at such meeting. Any irregularities in the notice of any
meeting or the nonreceipt of any such notice by any of the Shareholders shall
not invalidate any action otherwise properly taken at any such meeting.

Section 5. VALIDITY OF PROXIES. Subject to the provisions of the Trust
Instrument, Shareholders entitled to vote may vote either in person or by proxy;
provided, that either (1) the Shareholder or his or her duly authorized attorney
has signed and dated a written instrument authorizing such proxy to act, or (2)
the Trustees adopt by resolution an electronic, telephonic, computerized or
other alternative to execution of a written instrument authorizing the proxy to

-5-

<PAGE>

act, but if a proposal by anyone other than the officers or Trustees is
submitted to a vote of the Shareholders of any Series or Class, or if there is a
proxy contest or proxy solicitation or proposal in opposition to any proposal by
the officers or Trustees, Shares may be voted only in person or by written
proxy. Unless the proxy provides otherwise, it shall not be valid for more than
eleven months before the date of the meeting. All proxies shall be delivered to
the Secretary or other person responsible for recording the proceedings before
being voted. A proxy with respect to Shares held in the name of two or more
persons shall be valid if executed by one of them unless at or prior to exercise
of such proxy the Trust receives a specific written notice to the contrary from
any one of them. Unless otherwise specifically limited by their terms, proxies
shall entitle the Shareholder to vote at any adjournment of a Shareholders'
meeting. A proxy purporting to be executed by or on behalf of a Shareholder
shall be deemed valid unless challenged at or prior to its exercise, and the
burden of proving invalidity shall rest on the challenger. At every meeting of
Shareholders, unless the voting is conducted by inspectors, the chairman of the
meeting shall decide all questions concerning the qualifications of voters, the
validity of proxies, and the acceptance or rejection of votes. Subject to the
provisions of the Delaware Business Trust Act, the Trust Instrument, or these
By- laws, the General Corporation Law of the State of Delaware relating to
proxies, and judicial interpretations thereunder shall govern all matters
concerning the giving, voting or validity of proxies, as if the Trust were a
Delaware corporation and the Shareholders were shareholders of a Delaware
corporation.

Section 6. RECORD DATE. The Trustees may fix in advance a date up to ninety days
before the date of any Shareholders' meeting as a record date for the
determination of the Shareholders entitled to notice of, and to vote at, any
such meeting. The Shareholders of record entitled to vote at a Shareholders'
meeting shall be deemed the Shareholders of record at any meeting reconvened
after one or more adjournments, unless the Trustees have fixed a new record
date. If the Shareholders' meeting is adjourned for more than sixty days after
the original date, the Trustees shall establish a new record date.

Section 7. ACTION WITHOUT A MEETING. Shareholders may take any action without a
meeting if a majority (or such greater amount as may be required by law) of the
Outstanding Shares entitled to vote on the matter consent to the action in
writing and such written consents are filed with the records of Shareholders'
meetings. Such written consent shall be treated for all purposes as a vote at a
meeting of the Shareholders.

ARTICLE VI
SHARES OF BENEFICIAL INTEREST

Section 1. NO SHARE CERTIFICATES. Neither the Trust nor any Series or Class
shall issue certificates certifying the ownership of Shares, unless the Trustees
may otherwise specifically authorize such certificates.

Section 2. TRANSFER OF SHARES. Shares shall be transferable only by a transfer
recorded on the books of the Trust by the Shareholder of record in person or by
his or her duly authorized attorney or legal representative. Shares may be

-6-

<PAGE>

freely transferred and the Trustees may, from time to time, adopt rules and
regulations regarding the method of transfer of such Shares.

ARTICLE VII
FISCAL YEAR AND ACCOUNTANT

Section 1. FISCAL YEAR. The fiscal year of the Trust shall be determined by the
Trustees, provided, however, that the Trustees may from time to time change the
fiscal year.

Section 2. ACCOUNTANT. The Trust shall employ independent certified public
accountants as its Accountant to examine the accounts of the Trust and to sign
and certify financial statements filed by the Trust. The Accountant's
certificates and reports shall be addressed both to the Trustees and to the
Shareholders. A majority of the Disinterested Trustees shall select the
Accountant at any meeting held within ninety days before or after the beginning
of the fiscal year of the Trust, acting upon the recommendation of the Audit
Committee. The Trust shall submit the selection for ratification or rejection at
the next succeeding Shareholders' meeting, if such a meeting is to be held
within the Trust's fiscal year. If the selection is rejected at that meeting,
the Accountant shall be selected by majority vote of the Trust's outstanding
voting securities, either at the meeting at which the rejection occurred or at a
subsequent meeting of shareholders called for the purpose of selecting an
Accountant. The employment of the Accountant shall be conditioned upon the right
of the Trust to terminate such employment without any penalty by vote of a
Majority Shareholder Vote at any Shareholders' meeting called for that purpose.

ARTICLE VIII
AMENDMENTS

These By-Laws, or any of them, may be altered, amended or repealed, or
new By-Laws may be adopted (a) by the Shareholders by a Majority Shareholder
Vote, or (b) by the Trustees, provided, however, that no By-Law may be amended,
adopted or repealed by the Trustees if such amendment, adoption or repeal
requires, pursuant to law, the Instrument or these By-Laws, a vote of the
Shareholders.

ARTICLE IX
NET ASSET VALUE

The term "Net Asset Value" of any Series shall mean that amount by
which the assets belonging to that Series exceed its liabilities, all as
determined by or under the direction of the Trustees. Net Asset Value per Share
shall be determined separately for each Series and shall be determined on such
days and at such times as the Trustees may determine. The Trustees shall make
such determination with respect to securities for which market quotations are
readily available, at the market value of such securities, and with respect to
other securities and assets, at the fair value as determined in good faith by
the Trustees; provided, however, that the Trustees, without Shareholder
approval, may alter the method of appraising portfolio securities insofar as
permitted under

-7-

<PAGE>

the 1940 Act and the rules, regulations and interpretations thereof promulgated
or issued by the SEC or insofar as permitted by any order of the SEC applicable
to the Series. The Trustees may delegate any of their powers and duties under
this Article X with respect to appraisal of assets and liabilities. At any time
the Trustees may cause the Net Asset Value per Share last determined to be
determined again in a similar manner and may fix the time when such redetermined
values shall become effective.

-8-

CONSENT OF ERNST & YOUNG LLP, INDEPENDENT AUDITORS

We consent to the references to our firm under the caption "Independent
Accountants or Auditors" in the Statement of Additional Information and to use
of our report dated June 21, 1994 on the financial statements of Excelsior
Institutional Equity Index Fund, Excelsior Institutional Bond Index Fund,
Excelsior Institutional Small Capitalization Fund, Excelsior Institutional
Balanced Fund, Excelsior Institutional Equity Growth Fund and Excelsior
Institutional Value Equity Income Fund, (portfolios of Excelsior Institutional
Trust) incorporated by reference in this Post-Effective Amendment Number 3 to
Registration Statement (Form N-1A, File No. 33-78264) dated June 12, 1995.

/s/ ERNST & YOUNG LLP
ERNST & YOUNG LLP

Boston, Massachusetts
June 8, 1995

CONSENT OF INDEPENDENT ACCOUNTANTS

We hereby consent to the use in the Statement of Additional Information
constituting part of this Post-Effective Amendment No. 3 under the Securities
Act of 1933 to the registration statement on Form N-1A of the Excelsior
Institutional Trust (the "Registration Statement") (File Nos. 33-78264,
811-8490) of our report dated June 20, 1994, relating to the financial
statements of the Equity Market Portfolio, the Bond Market Portfolio, the Small
Cap Portfolio, the Balanced Portfolio, the Equity Growth Portfolio, and the
Value Equity Income Portfolio (series of the St. James Portfolios), which
appears in such Statement of Additional Information. We also consent to the
reference to us under the heading "Independent Accountants" in such Statement of
Additional Information.

/s/ PRICE WATERHOUSE LLP
PRICE WATERHOUSE LLP
Boston, Massachusetts
June 12, 1995

<ARTICLE> 6
<LEGEND>
This Schedule contains Summary Financial Information extracted from the
Excelsior Institutional Trust Semiannual Report dated 11/30/94 and is qualified
in its entirety by reference to such Semiannual Report.
</LEGEND>
<CIK> 0000922447
<NAME> EXCELSIOR INSTITUTIONAL TRUST
<SERIES>
<NUMBER> 1
<NAME> EQUITY INDEX FUND

<S> <C>
<PERIOD-TYPE> 6-MOS
<FISCAL-YEAR-END> MAY-31-1995
<PERIOD-START> JUL-11-1994
<PERIOD-END> NOV-30-1994
<INVESTMENTS-AT-COST> 0
<INVESTMENTS-AT-VALUE> 18,991,460
<RECEIVABLES> 7,197
<ASSETS-OTHER> 11,276
<OTHER-ITEMS-ASSETS> 0
<TOTAL-ASSETS> 19,009,933
<PAYABLE-FOR-SECURITIES> 0
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 17,386
<TOTAL-LIABILITIES> 17,386
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 18,249,706
<SHARES-COMMON-STOCK> 2,662,025
<SHARES-COMMON-PRIOR> 0
<ACCUMULATED-NII-CURRENT> 306,188
<OVERDISTRIBUTION-NII> 0
<ACCUMULATED-NET-GAINS> 339,170
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> 97,483
<NET-ASSETS> 18,992,547
<DIVIDEND-INCOME> 0
<INTEREST-INCOME> 318,350
<OTHER-INCOME> 0
<EXPENSES-NET> 12,162
<NET-INVESTMENT-INCOME> 306,188
<REALIZED-GAINS-CURRENT> 339,170
<APPREC-INCREASE-CURRENT> 97,483
<NET-CHANGE-FROM-OPS> 742,841
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> 0
<DISTRIBUTIONS-OF-GAINS> 0
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 3,853,717
<NUMBER-OF-SHARES-REDEEMED> 1,191,692
<SHARES-REINVESTED> 0
<NET-CHANGE-IN-ASSETS> 18,975,880
<ACCUMULATED-NII-PRIOR> 0
<ACCUMULATED-GAINS-PRIOR> 0
<OVERDISTRIB-NII-PRIOR> 0
<OVERDIST-NET-GAINS-PRIOR> 0
<GROSS-ADVISORY-FEES> 0
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> 51,492
<AVERAGE-NET-ASSETS> 25,154,927
<PER-SHARE-NAV-BEGIN> 7.00
<PER-SHARE-NII> 0.12
<PER-SHARE-GAIN-APPREC> 0.01
<PER-SHARE-DIVIDEND> 0.00
<PER-SHARE-DISTRIBUTIONS> 0.00
<RETURNS-OF-CAPITAL> 0.00
<PER-SHARE-NAV-END> 7.13
<EXPENSE-RATIO> 0.05
<AVG-DEBT-OUTSTANDING> 0
<AVG-DEBT-PER-SHARE> 0

</TABLE>

<ARTICLE> 6
<LEGEND>
This Schedule contains Summary Financial Information extracted from the
Semiannual Report dated 11/30/94 and is qualified in its entirety by reference
to such Semiannual Report.
</LEGEND>
<CIK> 0000922447
<NAME> EXCELSIOR INSTITUTIONAL TRUST
<SERIES>
<NUMBER> 2
<NAME> BOND INDEX FUND

<S> <C>
<PERIOD-TYPE> 6-MOS
<FISCAL-YEAR-END> MAY-31-1995
<PERIOD-START> JUL-11-1994
<PERIOD-END> NOV-30-1994
<INVESTMENTS-AT-COST> 0
<INVESTMENTS-AT-VALUE> 21294437
<RECEIVABLES> 9202
<ASSETS-OTHER> 9687
<OTHER-ITEMS-ASSETS> 0
<TOTAL-ASSETS> 21313326
<PAYABLE-FOR-SECURITIES> 0
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 146481
<TOTAL-LIABILITIES> 146481
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 21706843
<SHARES-COMMON-STOCK> 3103879
<SHARES-COMMON-PRIOR> 0
<ACCUMULATED-NII-CURRENT> 25
<OVERDISTRIBUTION-NII> 0
<ACCUMULATED-NET-GAINS> 56584
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> (596606)
<NET-ASSETS> 21166845
<DIVIDEND-INCOME> 0
<INTEREST-INCOME> 600500
<OTHER-INCOME> 0
<EXPENSES-NET> 9828
<NET-INVESTMENT-INCOME> 590672
<REALIZED-GAINS-CURRENT> 56584
<APPREC-INCREASE-CURRENT> (596606)
<NET-CHANGE-FROM-OPS> 50560
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> 590647
<DISTRIBUTIONS-OF-GAINS> 0
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 3103825
<NUMBER-OF-SHARES-REDEEMED> 0
<SHARES-REINVESTED> 54
<NET-CHANGE-IN-ASSETS> 21150178
<ACCUMULATED-NII-PRIOR> 0
<ACCUMULATED-GAINS-PRIOR> 0
<OVERDISTRIB-NII-PRIOR> 0
<OVERDIST-NET-GAINS-PRIOR> 0
<GROSS-ADVISORY-FEES> 0
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> 46656
<AVERAGE-NET-ASSETS> 20616914
<PER-SHARE-NAV-BEGIN> 7.00
<PER-SHARE-NII> .2
<PER-SHARE-GAIN-APPREC> (.18)
<PER-SHARE-DIVIDEND> 0
<PER-SHARE-DISTRIBUTIONS> 0
<RETURNS-OF-CAPITAL> 0
<PER-SHARE-NAV-END> 6.82
<EXPENSE-RATIO> .12
<AVG-DEBT-OUTSTANDING> 0
<AVG-DEBT-PER-SHARE> 0

</TABLE>

<S> <C>
<PERIOD-TYPE> 6-MOS
<FISCAL-YEAR-END> MAY-31-1995
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