<PAGE>
EXCELSIOR
INSTITUTIONAL
TRUST
EQUITY FUND
INCOME FUND
TOTAL RETURN BOND FUND
EQUITY INDEX FUND
BOND INDEX FUND
SMALL CAPITALIZATION FUND
BALANCED FUND
EQUITY GROWTH FUND
VALUE EQUITY INCOME FUND
INTERNATIONAL EQUITY FUND
ANNUAL REPORT
MAY 31, 1995
SERVICING AGENT
Signature Financial Services, Inc.
6 St. James Avenue
Boston, MA 02116
(617) 423-0800
INVESTMENT ADVISORS OF THE PORTFOLIOS
United States Trust Company of New York
114 West 47th Street
New York, NY 10036
United States Trust Company of the Pacific Northwest
4380 Southwest Macadam Avenue
Suite 450
Portland, OR 97201
TRANSFER AGENT TO THE FUNDS
Mutual Fund Services Company
73 Tremont Street
Boston, MA 02108
SHARES OF THE FUNDS ARE NOT DEPOSITS OR OBLIGATIONS OF, OR GUARANTEED OR EN-
DORSED BY, ANY BANK, AND THE SHARES ARE NOT FEDERALLY INSURED BY THE FEDERAL
DEPOSIT INSURANCE CORPORATION, BANK INSURANCE FUND, FEDERAL RESERVE BOARD, OR
ANY OTHER GOVERNMENTAL AGENCY. AN INVESTMENT IN A FUND IS SUBJECT TO RISK OF
PRINCIPAL.
<PAGE>
LETTER TO SHAREHOLDERS
DEAR SHAREHOLDER:
We are pleased to present you with the first annual report for Excelsior
Institutional Trust. This annual report is designed to provide a financial
summary of the Trust's operations for the period ended May 31, 1995.
Excelsior Institutional Trust is currently comprised of ten operational
funds consisting of five domestic equity portfolios, one international equity
portfolio, two fixed income portfolios, as well as one domestic equity index
portfolio and one bond index portfolio. These funds have been designed to
provide a comprehensive range of investment choices and offer shareholders an
opportunity to allocate holdings according to personal investment objectives.
Included within this report you will find a financial market commentary by
the investment advisors, as well as discussion of the investment strategies
implemented to achieve the performance of each fund. Accompanying these
discussions are line graph depictions of each fund's performance relative to
appropriate broad-based securities market indices to which the funds can be
compared. This format is designed to provide you with more detailed
information about the investment management of your funds and their relative
performance.
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,
(ART)
Philip W. Coolidge
President
<PAGE>
EXCELSIOR INSTITUTIONAL TRUST
ADVISORS MARKET REVIEW
-------------------------------------------------------------------------------
The financial markets were quite volatile from July 11, 1994, when six of the
Trust's Funds commenced operations, through May 31, 1995. For the period from
June 30, 1994 through May 31, 1995, equities increased 23.19%(/1/) as measured
by the Standard & Poor's 500 Composite Stock Price Index (the "S&P 500").
However, much of this gain came in the five months from December 31, 1994
through May 31, 1995, when the S&P 500 increased by 17.46%(/1/), buoyed by
strong corporate profits and declining interest rates. Despite strong advances
by the more popular indices such as the Dow Jones Industrials and the S&P 500,
the broader market did not advance nearly as much. The Wilshire 4500 increased
16.00%(/2/) while the Russell 2000 increased 14.18%(/3/) during the eleven
months ended May 31, 1995.
The level of interest rates had a lot to do with the direction of equities for
the period. During the second half of 1994, interest rates were generally
rising, corresponding with relatively lackluster equity returns and nominal
bond returns. The Lehman Aggregate Index rose just 1.02%(/4/) in that period.
However, in the first five months of 1995 interest rates declined dramatically
at all levels except very short term bonds, resulting in strong fixed income
performance as well as good equity performance, as mentioned above. The yield
on the 30 year treasury bond fell from 7.88% at the beginning of the year to
6.66% at the end of May. The Lehman Aggregate Index increased 10.64%(/4/) for
the same time period, accounting for nearly all of its 11.66%(/4/) gain for
the 11 months ended May 31, 1995.
International equities did not fare as well as domestic equities, particularly
the emerging markets. While the broad market increased 2.69%(/5/) as measured
by the FT-Actuaries World Indices-World Excluding U.S. Index for the 11 months
ended May 31, 1995 and 3.58%(/5/) for the five months ended May 31, 1995,
these gains masked serious carnage in some of the emerging markets. For
example, the Mexican Bolsa, rocked by the devaluation of the peso, declined
over 13% for the 11 months ended May 31, 1995, with many other Latin American
countries experiencing similar losses. European markets as a group performed
relatively well for the period, generally showing double digit gains while
Pacific Rim countries, of which Japan being the most significant, generally
showed losses. Aiding returns to dollar based investors was the weakness of
the U.S. dollar, which fell 14% relative to the Japanese Yen and almost 11%
relative to the German Mark for the same 11 month period.
--------
(/1/)Source: Standard & Poor's Corporation--Reflects the reinvestment of
income dividends and, where applicable, capital gain distributions. The
Standard & Poor's 500 Composite Stock Price Index is a widely accepted
unmanaged index of U.S. stock market performance.
(/2/)Source: Wilshire Associates Incorporated--The Wilshire 4500 Equity Index
is a widely accepted, unmanaged index of domestic stock market performance
and is composed of 4,500 stocks in the Wilshire 5000 Equity Index (it
excludes the 500 stocks in the S&P 500). The Wilshire 5000 Equity Index
measures the performance of all U.S. headquartered equity securities with
readily available price data. Approximately 6,500 capitalization weighted
security returns are used to adjust the Index. The Index includes dividends
reinvested.
(/3/)Source: The Russell Company--The Russell 2000 Index is an unmanaged index
and is composed of the 2,000 smallest companies in the Russell 3000 Index.
The Russell 3000 Index is composed of 3,000 of the largest U.S. companies by
market capitalization. The Index includes dividends reinvested.
(/4/)Source: Lehman Brothers--Lehman Brothers Aggregate Index is an unmanaged
total return performance benchmark commonly used to measure bond performance.
The Index is made up of Lehman's Govt/Corp Bond Index, Mortgage-Backed
Securities Index and Asset-Based Securities Index which are comprised of U.S.
Government agencies and U.S. Treasury securities, investment grade corporate
debt, mortgage-backed and asset-backed securities, selected as representative
of the market.
(/5/)Source: Goldman Sachs--The FT-Actuaries World Indices--World Excluding
U.S. Index is a widely accepted, unmanaged index of global stock market
performance, including Canada, Mexico, Europe, Australia, New Zealand, South
Africa and the Far East. The Index includes dividends reinvested.
<PAGE>
EXCELSIOR INSTITUTIONAL TRUST
ADVISER'S INVESTMENT REVIEW
EQUITY FUND
-------------------------------------------------------------------------------
For the period January 16, 1995 (inception date) through May 31, 1995, the
Fund reported a total return of 10.80%*, versus a total return of 17.46%** for
the Standard & Poor's 500 Composite Stock Price Index (the "S&P 500") for the
period December 31, 1994 through May 31, 1995. The Fund's underperformance was
at least partly the result of substantial growth in assets during a period
when the stock market, as measured by the S&P 500, was posting strong gains;
in such an environment, rapid inflows of cash are an obvious drag on
performance. In addition, while the market was driven by a relatively small
number of stocks, our investment approach is long term in nature and tends to
be more broadly focused. Such a strategy can result in short-term swings, but
we believe it also positions us well for the long term. Accordingly, we
devoted these initial months to building a well-diversified portfolio
utilizing a blend of U.S. Trust's problem/opportunity, transaction value, and
early life cycle strategies and investment themes. Given the broader market's
heightened valuation levels, we placed a greater emphasis on transaction value
opportunities. In fact, during the period, the Fund was aided by transactions
involving a number of Fund holdings, including I.T.T., Grace, and Legent.
Looking ahead, areas of emphasis include the cyclicals (raw materials, capital
goods, etc.), where we expect to see the strongest growth in a moderate-growth
U.S. economy, and technology (roughly 15%). An area of deemphasis is
utilities, given deregulation and the prospect of competition.
COMPARISON OF CHANGE IN VALUE OF $10,000 INVESTMENT IN EQUITY FUND AND THE
STANDARD & POOR'S 500 COMPOSITE STOCK PRICE INDEX**
[GRAPH APPEARS HERE]
Line graph with two axes: the X-axis represents years of operations; the Y-axis
represents dollar value. The graph plots two lines: the first line represents
the growth of a ten thousand dollar investment in the Fund from January 16,
1995 to May 31, 1995; the second line represents the growth of a ten thousand
dollar investment in a portfolio of securities reflecting the composition of the
Standard & Poor's 500 Composite Stock Price Index from December 31, 1994 to May
31, 1995. The graph points are as follows:
<TABLE>
<CAPTION>
DATE FUND S&P 500
<S> <C> <C>
1/16/95 $10,000 $10,000
1/31/95 $9,886 $10,260
2/28/95 $10,229 $10,660
3/31/95 $10,507 $10,970
4/30/95 $10,521 $11,300
5/31/95 $11,080 $11,750
</TABLE>
PAST PERFORMANCE IS NOT PREDICTIVE OF FUTURE PERFORMANCE. INVESTMENT RETURNS
AND PRINCIPAL VALUES WILL VARY AND SHARES MAY BE WORTH MORE OR LESS AT
REDEMPTION THAN THEIR ORIGINAL COST.
The above illustration compares a $10,000 investment made in Equity Fund on
1/16/95 (inception date) to a $10,000 investment made in the Standard & Poor's
500 Composite Stock Price Index on that date. For comparative purposes, the
value of the Index on 12/31/94 is used as the beginning value on 1/16/95. All
dividends and capital gain distributions are reinvested. The Fund's
performance takes into account fees and expenses. The Standard & Poor's 500
Composite Stock Price Index does not take into account charges, fees and other
expenses. Further information relating to Fund performance is contained in the
Financial Highlights section of the Prospectus and elsewhere in this report.
--------
* Total return represents the change during the period in a hypothetical
account with dividends reinvested.
** Source: Standard & Poor's Corporation--Reflects the reinvestment of income
dividends and, where applicable, capital gain distributions. The Standard
& Poor's 500 Composite Stock Price Index is a widely accepted unmanaged
index of U.S. stock market performance.
+ The Fund is currently waiving certain fees. Had the Fund not waived fees,
returns would have been lower. This voluntary waiver may be modified or
terminated at any time.
<PAGE>
EXCELSIOR INSTITUTIONAL TRUST
ADVISER'S INVESTMENT REVIEW
INCOME FUND
-------------------------------------------------------------------------------
The Fund generated a total return of 7.51%* for the period from the Fund's
inception on January 16, 1995 through May 31, 1995, compared to the Lehman
Brothers Intermediate Govt/Corp Bond Index which recorded a gain of 8.86%**
for the period December 31, 1994 through May 31, 1995. After trading lower
during the first three weeks of January, the bond market began its slow, if
slightly choppy, rise, as signs of slower growth in the economy began to
emerge. From the inception of the Fund on January 16, 1995 through May 31,
1995, the yield curve shifted dramatically. During this period the two-year
Treasury went from a 7.34% yield at the beginning of the period to a 5.84%
yield by May 31, and in the 10-year area, the curve shifted from a 7.67% yield
to a 6.28% yield, while the long bond fell from 7.79% to 6.65%. For the entire
period, we remained mindful of our charge to maximize current interest income
and thus remained fully invested. At May 31, 1995, the portfolio had an
average coupon of 7.79% while maintaining an average AAA quality rating. The
average maturity was 5.6 years with a 4.2 year duration. With 57% of the
portfolio in U.S. Treasuries, we believe we are well positioned to increase
income if corporate securities begin to offer more value than in the past five
months or to adjust the average maturity if market conditions change.
COMPARISON OF CHANGE IN VALUE OF $10,000 INVESTMENT IN INCOME FUND AND
THE LEHMAN BROTHERS INTERMEDIATE GOVT/CORP BOND INDEX**
[GRAPH APPEARS HERE]
Line graph with two axes: the X-axis represents years of operations; the Y-axis
represents dollar value. The graph plots two lines: the first line represents
the growth of a ten thousand dollar investment in the Fund from January 16, 1995
to May 31, 1995; the second line represents the growth of a ten thousand
dollar investment in a portfolio of securities reflecting the composition of the
Lehman Brothers Intermediate Govt/Corp Bond Index from December 31, 1994 to May
31, 1995. The graph points are as follows:
<TABLE>
<CAPTION>
LEHMAN
BROTHERS
INT GOVT/CORP
DATE FUND INDEX
<S> <C> <C>
1/16/95 $10,000 $10,000
1/31/95 $10,085 $10,170
2/28/95 $10,238 $10,380
3/31/95 $10,301 $10,440
4/30/95 $10,422 $10,570
5/31/95 $10,751 $10,890
</TABLE>
PAST PERFORMANCE IS NOT PREDICTIVE OF FUTURE PERFORMANCE. INVESTMENT RETURNS
AND PRINCIPAL VALUES WILL VARY AND SHARES MAY BE WORTH MORE OR LESS AT
REDEMPTION THAN THEIR ORIGINAL COST.
The above illustration compares a $10,000 investment made in Income Fund on
1/16/95 (inception date) to a $10,000 investment made in the Lehman Brothers
Intermediate Govt/Corp Bond Index on that date. For comparative purposes, the
value of the Index on 12/31/94 is used as the beginning value on 1/16/95. All
dividends and capital gain distributions are reinvested.
The Fund's performance takes into account fees and expenses. The Lehman
Brothers Intermediate Govt/Corp Bond Index is an unmanaged total return
performance benchmark comprised of U.S. Government agencies and U.S. Treasury
securities and investment grade corporate debt, selected as representative of
the market with maturities of one to ten years. The Index does not take into
account charges, fees and other expenses. Further information relating to Fund
performance is contained in the Financial Highlights section of the Prospectus
and elsewhere in this report.
--------
* Total return represents the change during the period in a hypothetical
account with dividends reinvested.
** Source: Lehman Brothers.
+ The Fund is currently waving certain fees. Had the Fund not waived fees,
returns would have been lower. This voluntary waiver may be modified or
terminated at any time.
<PAGE>
EXCELSIOR INSTITUTIONAL TRUST
ADVISER'S INVESTMENT REVIEW
TOTAL RETURN BOND FUND
-------------------------------------------------------------------------------
Benefitting from a favorable investment environment, the Total Return Bond
Fund provided a 9.40%* total return since its inception on January 19, 1995
through May 31, 1995. The Lehman Brothers Govt/Corp Bond Index recorded a gain
of 10.90%** for the period December 31, 1994 through May 31, 1995.
Underpinning the rally was the belief that the Federal Reserve had finally
achieved a soft landing for the U.S. economy. After a strong fourth-quarter
1994, the economy slowed, inflation remained surprisingly moderate--especially
after four years of business expansion--and the slate of new taxable debt
offerings plunged. For the period, the Fund maintained an average coupon of
7.20% with an average maturity of 8.7 years and average quality rating of AAA.
By sector, we maintained 71.2% of the portfolio in federal government/agency
issues, 2.2% in the industrial area, 6.6% in finance, 6.3% in utilities, 12.2%
in mortgage-backed (U.S. Government-Guaranteed, Government National Mortgage
Association) securities, and 1.5% in temporary investments. We feel the
current economic slowdown does not point to recession. The data reflect a
moderation in the rate of economic growth, but we believe the economy remains
in good shape and we expect renewed moderate economic growth during the second
half of 1995.
COMPARISON OF CHANGE IN VALUE OF $10,000 INVESTMENT IN TOTAL RETURN BOND FUND
AND THE LEHMAN BROTHERS GOVT/CORP BOND INDEX**
[GRAPH APPEARS HERE]
Line graph with two axes: the X-axis represents years of operations; the Y-axis
represents dollar value. The graph plots two lines: the first line represents
the growth of a ten thousand dollar investment in the Fund from January 19, 1995
to May 31, 1995; the second line represents the growth of a ten thousand dollar
investment in a portfolio of securities reflecting the composition of the Lehman
Brothers Govt/Corp Bond Index from December 31, 1994 to May 31, 1995. The graph
points are as follows:
<TABLE>
<CAPTION>
LEHMAN
BROTHERS
GOVT/CORP
DATE FUND INDEX
<S> <C> <C>
1/19/95 $10,000 $10,000
1/31/95 $10,440 $10,190
2/28/95 $10,272 $10,430
3/31/95 $10,320 $10,500
4/30/95 $10,483 $10,640
5/31/95 $10,940 $11,090
</TABLE>
PAST PERFORMANCE IS NOT PREDICTIVE OF FUTURE PERFORMANCE. INVESTMENT RETURNS
AND PRINCIPAL VALUES WILL VARY AND SHARES MAY BE WORTH MORE OR LESS AT
REDEMPTION THAN THEIR ORIGINAL COST.
The above illustration compares a $10,000 investment made in Total Return
Bond Fund on 1/19/95 (inception date) to a $10,000 investment made in the
Lehman Brothers Govt/Corp Bond Index on that date. For comparative purposes,
the value of the Index on 12/31/94 is used as the beginning value on 1/19/95.
All dividends and capital gain distributions are reinvested.
The Fund's performance takes into account fees and expenses. The Lehman
Brothers Govt/Corp Bond Index is an unmanaged total return performance
benchmark comprised of U.S. Government agencies and U.S. Treasury securities
and investment grade corporate debt, selected as representative of the market.
The Index does not take into account charges, fees and other expenses. Further
information relating to Fund performance is contained in the Financial
Highlights section of the Prospectus and elsewhere in this report.
--------
* Total return represents the change during the period in a hypothetical
account with dividends reinvested.
** Source: Lehman Brothers.
+ The Fund is currently waiving certain fees. Had the Fund not waived fees,
returns would have been lower. This voluntary waiver may be modified or
terminated at any time.
<PAGE>
EXCELSIOR INSTITUTIONAL TRUST
ADVISER'S INVESTMENT REVIEW
EQUITY INDEX FUND
-------------------------------------------------------------------------------
The Fund generated a total return of 20.96%* for the period from the Fund's
inception on July 11, 1994 through May 31, 1995 compared to 23.19%** for the
Standard & Poor's 500 Composite Stock Price Index (the "S&P 500") for the
period June 30, 1994 through May 31, 1995. The Fund is fully invested in S&P
500 stocks, weighted in the same proportion as the index. The first fiscal
quarter saw a strong rebound in the market as investors responded positively
to low inflation, good corporate earnings, and the Federal Reserve's August
rate increase. In the second fiscal quarter, renewed concerns over inflation
weighed heavily on the market, but another rate increase by the Federal
Reserve in November caused the market to rebound late in the quarter. During
the first half, the Fund was also affected by the market's preference for
smaller capitalization issues over large capitalization stocks, such as those
found in the S&P 500. After a flat second quarter, the Fund benefited from a
strong comeback in the S&P 500. Strong indications that the U.S. is amidst a
soft landing, stable interest rates, and higher-than-expected corporate
profits pushed the U.S. equity market to record highs. Going forward, we will
continue to be fully invested in the S&P 500.
COMPARISON OF CHANGE IN VALUE OF $10,000 INVESTMENT IN EQUITY INDEX
FUND AND THE STANDARD & POOR'S 500 COMPOSITE STOCK PRICE INDEX**
[GRAPH APPEARS HERE]
Line graph with two axes: the X-axis represents years of operations; the Y-axis
represents dollar value. The graph plots two lines: the first line represents
the growth of a ten thousand dollar investment in the Fund from July 11, 1994 to
May 31, 1995; the second line represents the growth of a ten thousand dollar
investment in a portfolio of securities reflecting the composition of the
Standard & Poor's 500 Composite Stock Price Index from June 30, 1994 to May 31,
1995. The graph points are as follows:
<TABLE>
<CAPTION>
S & P 500
DATE FUND INDEX
<S> <C> <C>
7/11/94 $10,000 $10,000
7/31/94 $10,186 $10,330
8/31/94 $10,586 $10,750
9/30/94 $10,343 $10,490
10/31/94 $10,571 $10,720
11/30/94 $10,186 $10,330
12/31/94 $10,341 $10,490
1/31/95 $10,604 $10,760
2/28/95 $11,014 $11,170
3/31/95 $11,335 $11,500
4/30/95 $11,657 $11,840
5/31/95 $12,096 $12,320
</TABLE>
PAST PERFORMANCE IS NOT PREDICTIVE OF FUTURE PERFORMANCE. INVESTMENT RETURNS
AND PRINCIPAL VALUES WILL VARY AND SHARES MAY BE WORTH MORE OR LESS AT
REDEMPTION THAN THEIR ORIGINAL COST.
The above illustration compares a $10,000 investment made in Equity Index
Fund on 7/11/94 (inception date) to a $10,000 investment made in the Standard
& Poor's 500 Composite Stock Price Index on that date. For comparative
purposes, the value of the Index on 6/30/94 is used as the beginning value on
7/11/94. All dividends and capital gain distributions are reinvested. The
Fund's performance takes into account fees and expenses. The Standard & Poor's
500 Composite Stock Price Index does not take into account charges, fees and
other expenses. Further information relating to Fund performance is contained
in the Financial Highlights section of the Prospectus and elsewhere in this
report.
-------
* Total return represents the change during the period in a hypothetical
account with dividends reinvested.
** Source: Standard & Poor's Corporation--Reflects the reinvestment of income
dividends and, where applicable, capital gain distributions. The Standard &
Poor's 500 Composite Stock Price Index is a widely accepted unmanaged index
of U.S. stock market performance.
+ The Fund is currently waiving certain fees. Had the Fund not waived fees,
returns would have been lower. This voluntary waiver may be modified or
terminated at any time.
<PAGE>
EXCELSIOR INSTITUTIONAL TRUST
ADVISER"S INVESTMENT REVIEW
BOND INDEX FUND
-------------------------------------------------------------------------------
The period from the Fund's inception on July 11, 1994 through May 31, 1995,
was characterized by increased volatility in the capital markets. Stronger-
than-expected economic data in the first half of the period resulted in a
continuation of the credit tightening begun by the Federal Reserve in February
1994. Interest rates rose sharply as a result, while the yield curve
experienced a significant flattening. The effects of higher interest rates on
the economy began to be observed by the middle of the first calendar quarter
of 1995. Real retail sales were barely rising, there was more widespread
weakness in the housing market, and there were indications of a topping out in
automobile production. A slowing economy together with remarkably well-behaved
inflation resulted in a powerful bond market rally. Since inception, the
Fund's characteristics have tracked the characteristics of the Lehman Brothers
Aggregate Index. As of May 31, 1995, the Fund's option-adjusted duration was
4.6 years. For the period July 11, 1994 through May 31, 1995, the Fund
achieved a total return of 11.03%*, compared to 11.66%** for the Lehman
Brothers Aggregate Index for the period June 30, 1994 through May 31, 1995.
COMPARISON OF CHANGE IN VALUE OF $10,000 INVESTMENT IN BOND INDEX FUND AND THE
LEHMAN BROTHERS AGGREGATE INDEX**
[GRAPH APPEARS HERE]
Line graph with two axes: the X-axis represents years of operations; the Y-axis
represents dollar value. The graph plots two lines: the first line represents
the growth of a ten thousand dollar investment in the Fund from July 11, 1994 to
May 31, 1995; the second line represents the growth of a ten thousand dollar
investment in a portfolio of securities reflecting the composition of the Lehman
Brothers Aggregate Index from June 30, 1994 to May 31, 1995. The graph points
are as follows:
<TABLE>
<CAPTION>
LEHMAN BROS
AGGREGATE
DATE FUND INDEX
<S> <C> <C>
7/11/94 $10,000 $10,000
7/31/94 $10,201 $10,200
8/31/94 $10,220 $10,210
9/30/94 $10,067 $10,060
10/31/94 $10,052 $10,050
11/30/94 $10,025 $10,030
12/31/94 $10,107 $10,100
1/31/95 $10,286 $10,300
2/28/95 $10,510 $10,540
3/31/95 $10,559 $10,610
4/30/95 $10,698 $10,760
5/31/95 $11,103 $11,170
</TABLE>
PAST PERFORMANCE IS NOT PREDICTIVE OF FUTURE PERFORMANCE. INVESTMENT RETURNS
AND PRINCIPAL VALUES WILL VARY AND SHARES MAY BE WORTH MORE OR LESS AT
REDEMPTION THAN THEIR ORIGINAL COST.
The above illustration compares a $10,000 investment made in Bond Index Fund
on 7/11/94 (inception date) to a $10,000 investment made in the Lehman
Brothers Aggregate Index on that date. For comparative purposes, the value of
the Index on 6/30/94 is used as the beginning value on 7/11/94. All dividends
and capital gain distributions are reinvested. The Fund's performance takes
into account fees and expenses. The Lehman Brothers Aggregate Index does not
take into account charges, fees and other expenses. Further information
relating to Fund performance is contained in the Financial Highlights section
of the Prospectus and elsewhere in this report.
* Total return represents the change during the period in a hypothetical
account with dividends reinvested.
** Source: Lehman Brothers--Lehman Brothers Aggregate Index is an unmanaged
total return performance benchmark commonly used to measure bond
performance. The Index is made up of Lehman's Govt/Corp Bond Index,
Mortgage-Backed Securities Index and Asset-Backed Securities Index which
are comprised of U.S. Government agencies and U.S. treasury securities,
investment grade corporate debt, mortgage-backed and asset-backed
securities, selected as representative of the market.
+ The Fund is currently waiving certain fees. Had the Fund not waived fees,
returns would have been lower. This voluntary waiver may be modified or
terminated at any time.
<PAGE>
EXCELSIOR INSTITUTIONAL TRUST
ADVISER'S INVESTMENT REVIEW
SMALL CAP FUND
-------------------------------------------------------------------------------
The Fund generated a total return of 11.10%* for the period from the Fund's
inception on July 11, 1994 through May 31, 1995, compared to 14.18%** for the
Russell 2000 Index for the period June 30, 1994 through May 31, 1995. The Fund
invests in stocks in the Russell 2000 Index, but with a lower aggregate P/E
ratio than the Index, thus identifying us as value investors. The Fund's value
approach is structured to take advantage of the historical long-term
outperformance of value over growth. During the first two fiscal quarters, the
Fund was hurt by value stocks significantly underperforming growth stocks. In
the fiscal third quarter, the market grew unfavorable for small capitalization
stocks as investors shifted focus to more defensive, large capitalization
stocks, with technology stocks leading the pack. During the fourth quarter,
the Fund benefited from a shift back to small capitalization issues, although
growth once again outperformed value. During the second half of the fiscal
year, we slightly reduced our value tilt and increased the number of holdings
from 201 to 235 stocks. This shift enabled the Fund to increase
diversification and reduce industry and specific stock risks. Specifically, we
increased our holdings in consumer staples, utilities, and integrated oil
sectors while decreasing our exposure to financial services and durables.
COMPARISON OF CHANGE IN VALUE OF $10,000 INVESTMENT IN SMALL CAP FUND AND THE
RUSSELL 2000 INDEX**
[GRAPH APPEARS HERE]
Line graph with two axes: the X-axis represents years of operations; the Y-axis
represents dollar value. The graph plots two lines: the first line represents
the growth of a ten thousand dollar investment in the Fund from July 11, 1994 to
May 31, 1995; the second line represents the growth of a ten thousand dollar
investment in a portfolio of securities reflecting the composition of the
Russell 2000 Index from June 30, 1994 to May 31, 1995. The graph points are as
follows:
<TABLE>
<CAPTION>
RUSSELL
2000
DATE FUND INDEX
<S> <C> <C>
7/11/94 $10,000 $10,000
7/31/94 $10,071 $10,160
8/31/94 $10,657 $10,730
9/30/94 $10,500 $10,690
10/31/94 $10,243 $10,650
11/30/94 $9,929 $10,65O
12/31/94 $10,144 $10,220
1/31/95 $10,086 $10,490
2/28/95 $10,374 $10,790
3/31/95 $10,562 $10,980
4/30/95 $10,822 $11,220
5/31/95 $11,110 $11,420
</TABLE>
PAST PERFORMANCE IS NOT PREDICTIVE OF FUTURE PERFORMANCE. INVESTMENT RETURNS
AND PRINCIPAL VALUES WILL VARY AND SHARES MAY BE WORTH MORE OR LESS AT
REDEMPTION THAN THEIR ORIGINAL COST.
The above illustration compares a $10,000 investment made in Small Cap Fund
on 7/11/94 (inception date) to a $10,000 investment made in the Russell 2000
Index on that date. For comparative purposes, the value of the Index on
6/30/94 is used as the beginning value on 7/11/94. All dividends and capital
gain distributions are reinvested. The Fund's performance takes into account
fees and expenses. The Russell 2000 Index does not take into account charges,
fees and other expenses. Further information relating to Fund performance is
contained in the Financial Highlights section of the Prospectus and elsewhere
in this report.
--------
* Total return represents the change during the period in a hypothetical
account with dividends reinvested.
** Source: The Russell Company--The Russell 2000 Index is an unmanaged index
and is composed of the 2,000 smallest companies in the Russell 3000 Index.
The Russell 3000 Index is composed of 3,000 of the largest U.S. companies
by market capitalization. The index includes dividends reinvested.
+ The Fund is currently waiving certain fees. Had the Fund not waived fees,
returns would have been lower. This voluntary waiver may be modified or
terminated at any time.
<PAGE>
EXCELSIOR INSTITUTIONAL TRUST
ADVISER'S INVESTMENT REVIEW
BALANCED FUND
-------------------------------------------------------------------------------
The Fund generated a total return of 14.59%* for the period from the Fund's
inception on July 11, 1994 through May 31, 1995, compared to 23.19%**for the
Standard & Poor's 500 Composite Stock Price Index and 11.66%*** for the Lehman
Brothers Aggregate Index for the period June 30, 1994 through May 31, 1995.
For much of the period, market conditions were generally good, as indicated by
the performance figures, with both stocks and bonds generating above average
results. One of the most important decisions for any balanced fund is the
allocation between stocks, bonds and cash. At its inception, the Fund was
invested almost equally between stocks and bonds, with a small advantage to
bonds. As interest rates rose in the latter half of 1994, the target
allocation to bonds was increased to 55% to take advantage of the perceived
value in this asset class. With the strong performance of bonds in the first
five months of 1995, the target allocation to fixed income was reduced to 45%,
with the cash target set at 10% and equities at 45%. Within equities, the
Fund's sub-advisor continues to focus on quality companies with low valuation
multiples. Many times these issues have lagged recent market performance but
seem less vulnerable to disappointment. Small and mid-cap issues, particularly
those involved with manufacturing and export markets, are viewed as offering
value, as are select technology issues that benefit from continued efforts to
improve U.S. productivity.
COMPARISON OF CHANGE IN VALUE OF $10,000 INVESTMENT IN BALANCED FUND, THE
STANDARD & POOR'S 500 COMPOSITE STOCK PRICE INDEX** AND THE LEHMAN BROTHERS
AGGREGATE INDEX***
[GRAPH APPEARS HERE]
Line graph with two axes: the X-axis represents years of operations; the Y-axis
represents dollar value. The graph plots three lines: the first line represents
the growth of a ten thousand dollar investment in the Fund from July 11, 1994 to
May 31, 1995; the second line represents the growth of a ten thousand dollar
investment in a portfolio of securities reflecting the composition of the
Standard & Poor's 500 Composite Stock Price Index from June 30, 1994 to May 31,
1995; the third line represents the growth of ten thousand dollars in a
portfolio of securities reflecting the composition of the Lehman Brothers
Aggregate Index from June 30, 1994 to May 31, 1995. The graph points are as
follows:
<TABLE>
<CAPTION>
LEHMAN
BROTHERS
S&P AGGREGATE
DATE FUND INDEX INDEX
<S> <C> <C> <C>
7/11/94 $10,000 $10,000 $10,000
7/31/94 $10,243 $10,330 $10,200
8/31/94 $10,471 $10,750 $10,210
9/30/94 $10,200 $10,490 $10,060
10/31/94 $10,243 $10,720 $10,050
11/30/94 $10,029 $10,330 $10,030
12/31/94 $10,104 $10,490 $10,100
1/31/95 $10,296 $10,760 $10,300
2/28/95 $10,620 $11,170 $10,540
3/31/95 $10,819 $11,500 $10,610
4/30/95 $11,058 $11,840 $10,760
5/31/95 $11,459 $12,320 $11,170
</TABLE>
PAST PERFORMANCE IS NOT PREDICTIVE OF FUTURE PERFORMANCE. INVESTMENT RETURNS
AND PRINCIPAL VALUES WILL VARY AND SHARES MAY BE WORTH MORE OR LESS AT
REDEMPTION THAN THEIR ORIGINAL COST.
The above illustration compares a $10,000 investment made in Balanced Fund
on 7/11/94 (inception date) to a $10,000 investment made in the Standard &
Poor's 500 Composite Stock Price Index and the Lehman Brothers Aggregate Index
on that date. For comparative purposes, the value of the Indexes on 6/30/94 is
used as the beginning value on 7/11/94. All dividends and capital gain
distributions are reinvested. The Fund's performance takes into account fees
and expenses. The Standard & Poor's 500 Composite Stock Price Index and the
Lehman Brothers Aggregate Index do not take into account charges, fees and
other expenses. Further information relating to Fund performance is contained
in the Financial Highlights section of the Prospectus and elsewhere in this
report.
--------
* Total return represents the change during the period in a hypothetical
account with dividends reinvested.
** Source: Standard & Poor's Corporation--Reflects the reinvestment of income
dividends and, where applicable, capital gain distributions. The Standard
& Poor's 500 Composite Stock Price Index is a widely accepted unmanaged
index of U.S. stock market performance.
*** Source: Lehman Brothers--Lehman Brothers Aggregate Index is an unmanaged
total return performance benchmark commonly used to measure bond
performance. The Index is made up of Lehman's Govt/Corp Bond Index,
Mortgage-Backed Securities Index and Asset-Backed Securities Index which
are comprised of U.S. Government agencies and U.S. Treasury securities,
investment grade corporate debt, mortgage-backed and asset-backed
securities, selected as representative of the market.
+ The Fund is currently waiving certain fees. Had the Fund not waived fees,
returns would have been lower. This voluntary waiver may be modified or
terminated at any time.
<PAGE>
EXCELSIOR INSTITUTIONAL TRUST
ADVISER'S INVESTMENT REVIEW
EQUITY GROWTH FUND
-------------------------------------------------------------------------------
The Fund generated a total return of 13.38%* for the period from the Fund's
inception on July 11, 1994 through May 31, 1995 compared to 23.19%** for the
Standard & Poor's 500 Composite Stock Price Index (the "S&P 500") for the
period June 30, 1994 through May 31, 1995. For much of the period, market
conditions were generally good, as indicated by the performance figures.
However, good absolute performance was not consistent, either by industry or
by market capitalization. The technology sector has performed particularly
well, as have larger capitalization multi-national companies. With a few
exceptions, Intel in particular, the Equity Growth Fund has generally not
owned many companies in these two areas. As a result, the performance of the
Fund has lagged the S&P 500. The Fund's sub-advisor has continued to emphasize
companies with above average growth rates, high returns on equity, and solid
balance sheets and has been able to buy such companies without having to "pay
up" for them. Examples would include such companies as Baxter International,
Colgate Palmolive, G Tech Holdings, Mobile Telecommunications and EMC Corp. As
a result, we feel the portfolio of companies in the Fund, as a group, have
better growth prospects, greater profitability and more sound financial
condition compared to the S&P 500 but are valued more cheaply. The companies,
as a group, are also smaller than those in the S&P 500 as measured by market
capitalization. While both the investment advisor and sub-advisor firmly
believe companies with such characteristics will outperform the S&P 500 over
time, there will be periods of under performance, such as was just
experienced.
COMPARISON OF CHANGE IN VALUE OF $10,000 INVESTMENT IN EQUITY GROWTH FUND AND
THE STANDARD & POOR'S 500 COMPOSITE STOCK PRICE INDEX**
[GRAPH APPEARS HERE]
Line graph with two axes: the X-axis represents years of operations; the Y-axis
represents dollar value. The graph plots two lines: the first line represents
the growth of a ten thousand dollar investment in the Fund from July 11, 1994 to
May 31, 1995; the second line represents the growth of a ten thousand dollar
investment in a portfolio of securities reflecting the composition of the
Standard & Poor's 500 Composite Stock Price Index from June 30, 1994 to May 31,
1995. The graph points are as follows:
<TABLE>
<CAPTION>
S&P 500
DATE FUND INDEX
<S> <C> <C>
7/11/94 $10,000 $10,000
7/31/94 $10,186 $10,330
8/31/94 $10,743 $10,750
9/30/94 $10,529 $10,490
10/31/94 $10,486 $10,720
11/30/94 $10,043 $10,330
12/31/94 $10,264 $10,490
1/31/95 $10,192 $10,760
2/28/95 $10,609 $11,170
3/31/95 $10,719 $11,500
4/30/95 $11,007 $11,840
5/31/95 $11,338 $12,320
</TABLE>
PAST PERFORMANCE IS NOT PREDICTIVE OF FUTURE PERFORMANCE. INVESTMENT RETURNS
AND PRINCIPAL VALUES WILL VARY AND SHARES MAY BE WORTH MORE OR LESS AT
REDEMPTION THAN THEIR ORIGINAL COST.
The above illustration compares a $10,000 investment made in Equity Growth
Fund on 7/11/94 (inception date) to a $10,000 investment made in the Standard
& Poor's 500 Composite Stock Price Index on that date. For comparative
purposes, the value of the Index on 6/30/94 is used as the beginning value on
7/11/94. All dividends and capital gain distributions are reinvested. The
Fund's performance takes into account fees and expenses. The Standard & Poor's
500 Composite Stock Price Index does not take into account charges, fees and
other expenses. Further information relating to Fund performance is contained
in the Financial Highlights section of the Prospectus and elsewhere in this
report.
--------
* Total return represents the change during the period in a hypothetical
account with dividends reinvested.
** Source: Standard & Poor's Corporation--Reflects the reinvestment of income
dividends and, where applicable, capital gain distributions. The Standard &
Poor's 500 Composite Stock Price Index is a widely accepted unmanaged index
of U.S. stock market performance.
+ The Fund is currently waiving certain fees. Had the Fund not waived fees,
returns would have been lower. This voluntary waiver may be modified or
terminated at any time.
<PAGE>
EXCELSIOR INSTITUTIONAL TRUST
ADVISER'S INVESTMENT REVIEW
VALUE EQUITY INCOME FUND
-------------------------------------------------------------------------------
The Fund generated a total return of 19.32%* for the period from the Fund's
inception on July 11, 1994 through May 31, 1995, compared to 23.19%** for the
Standard & Poor's 500 Composite Stock Price Index for the period June 30, 1994
through May 31, 1995. For much of the period, market conditions were generally
good, as indicated by the performance figures. However, good absolute
performance was not consistent, either by industry or by market
capitalization. The technology sector has performed particularly well as have
larger capitalization multi-national companies. While the Fund has no
significant representation in the former, it has generally been well
represented in the latter. The Fund is also well represented in two industry
groups, banks and electric utilities. While both industry groups did not
perform well in the latter half of 1994, both have performed quite well in the
first five months of 1995, benefiting from declining interest rates. The
Fund's sub-advisor continues to follow the relative dividend strategy whereby
it purchases securities when the relative dividend yield is high (stock price
is low) and sells securities when the relative dividend yield is low (stock
price is high). Using this strategy, the Fund has been gradually reducing its
position in drug stocks which have risen in price (Merck, Eli Lilly and Baxter
International) and replacing them with banks and utilities such as J.P.
Morgan, Mellon Bank, Texas Utilities and Central & SouthWest.
COMPARISON OF CHANGE IN VALUE OF $10,000 INVESTMENT IN VALUE EQUITY INCOME
FUND AND THE STANDARD & POOR'S 500 COMPOSITE STOCK PRICE INDEX**
[GRAPH APPEARS HERE]
Line graph with two axes: the X-axis represents years of operations; the Y-axis
represents dollar value. The graph plots two lines: the first line represents
the growth of a ten thousand dollar investment in the Fund from July 11, 1994 to
May 31, 1995; the second line represents the growth of a ten thousand dollar
investment in a portfolio of securities reflecting the composition of the
Standard & Poor's 500 Composite Stock Price Index from June 30, 1994 to May 31,
1995. The graph points are as follows:
<TABLE>
<CAPTION>
S&P 500
DATE FUND INDEX
<S> <C> <C>
7/11/94 $10,000 $10,000
7/31/94 $10,114 $10,330
8/31/94 $10,600 $10,750
9/30/94 $10,357 $10,490
10/31/94 $10,400 $10,720
11/30/94 $10,129 $10,330
12/31/94 $10,148 $10,490
1/31/95 $10,711 $10,760
2/28/95 $10,992 $11,170
3/31/95 $11,215 $11,500
4/30/95 $11,513 $11,840
5/31/95 $11,932 $12,320
</TABLE>
PAST PERFORMANCE IS NOT PREDICTIVE OF FUTURE PERFORMANCE. INVESTMENT RETURNS
AND PRINCIPAL VALUES WILL VARY AND SHARES MAY BE WORTH MORE OR LESS AT
REDEMPTION THAN THEIR ORIGINAL COST.
The above illustration compares a $10,000 investment made in Value Equity
Income Fund on 7/11/94 (inception date) to a $10,000 investment made in the
Standard & Poor's 500 Composite Stock Price Index on that date. For
comparative purposes, the value of the Index on 6/30/94 is used as the
beginning value on 7/11/94. All dividends and capital gain distributions are
reinvested. The Fund's performance takes into account fees and expenses. The
Standard & Poor's 500 Composite Stock Price Index does not take into account
charges, fees and other expenses. Further information relating to Fund
performance is contained in the Financial Highlights section of the Prospectus
and elsewhere in this report.
--------
* Total return represents the change during the period in a hypothetical
account with dividends reinvested.
** Source: Standard & Poor's Corporation--Reflects the reinvestment of income
dividends and, where applicable, capital gain distributions. The Standard &
Poor's 500 Composite Stock Price Index is a widely accepted unmanaged index
of U.S. stock market performance.
+ The Fund is currently waiving certain fees. Had the Fund not waived fees,
returns would have been lower. This voluntary waiver may be modified or
terminated at any time.
<PAGE>
EXCELSIOR INSTITUTIONAL TRUST
ADVISER'S INVESTMENT REVIEW
INTERNATIONAL EQUITY FUND
-------------------------------------------------------------------------------
The International Fund began operations January 24, 1995 (inception date)
and did not become fully invested until late March. Despite the fact that it
was not fully invested for the full period, the Fund generated a total return
of 12.57%* from inception through May 31, 1995, compared to 3.58%** for the
FT-Actuaries World Indices-World Excluding U.S. Index and 17.46%*** for the
Standard & Poor's 500 Composite Stock Price Index for the period December 31,
1994 through May 31, 1995. The Fund is broadly diversified, owning shares in
approximately 40 companies in more than a dozen countries, in a wide variety
of businesses. In terms of region, approximately 54% of the Fund is invested
in Europe, 34% in the Pacific Rim, with much smaller amounts in Latin America,
Africa and short term investments. The sub-advisor continues to focus on high
quality companies with strong balance sheets, proven management, superior
track records, and continued favorable growth prospects. Given that many of
these companies are located in countries with currency stability, low
inflation and adequate domestic savings rates, the Fund's investments tend to
be concentrated in "hard currency" countries such as Germany, the Netherlands,
Switzerland and France. Among emerging markets, the Fund favors those
countries with high savings rates such as Singapore.
COMPARISON OF CHANGE IN VALUE OF $10,000 INVESTMENT IN INTERNATIONAL EQUITY
FUND AND FT-ACTUARIES WORLD INDICES--WORLD EXCLUDING U.S. INDEX**
[GRAPH APPEARS HERE]
Line graph with two axes: the X-axis represents years of operations; the Y-axis
represents dollar value. The graph plots two lines: the first line represents
the growth of a ten thousand dollar investment in the Fund from January 24, 1995
to May 31, 1995; the second line represents the growth of a ten thousand dollar
investment in a portfolio of securities reflecting the composition of the
FT-Actuaries World Indices - World Excluding U.S. Index from December 31, 1994
to May 31, 1995. The graph points are as follows:
<TABLE>
<CAPTION>
FT - ACTUARIES
WORLD INDICES
DATE FUND INDEX
<S> <C> <C>
1/24/95 $10,000 $10,000
1/31/95 $9,860 $9,580
2/28/95 $10,129 $9,500
3/31/95 $10,386 $9,910
4/30/95 $10,786 $10,500
5/31/95 $11,257 $10,360
</TABLE>
PAST PERFORMANCE IS NOT PREDICTIVE OF FUTURE PERFORMANCE. INVESTMENT RETURNS
AND PRINCIPAL VALUES WILL VARY AND SHARES MAY BE WORTH MORE OR LESS AT
REDEMPTION THAN THEIR ORIGINAL COST. INTERNATIONAL INVESTING IS SUBJECT TO
SPECIAL RISKS SUCH AS CURRENCY FLUCTUATIONS AND DIFFERENCES IN ACCOUNTING AND
TAXATION STANDARDS.
The above illustration compares a $10,000 investment made in International
Equity Fund on 1/24/95 (inception date) to a $10,000 investment made in the
FT-Actuaries World Indices-World Excluding U.S. Index on that date. For
comparative purposes, the value of the Index on 12/31/94 is used as the
beginning value on 1/24/95. All dividends and capital gain distributions are
reinvested. The Fund's performance takes into account fees and expenses. The
FT-Actuaries World Indices-World Excluding U.S. Index does not take into
account charges, fees and other expenses. Further information relating to Fund
performance is contained in the Financial Highlights section of the Prospectus
and elsewhere in this report.
--------
* Total return represents the change during the period in a hypothetical
account with dividends reinvested.
** Source: Goldman Sachs--The FT-Actuaries World Indices-World Excluding U.S.
Index is a widely accepted, unmanaged index of global stock market
performance, including Canada, Mexico, Europe, Australia, New Zealand,
South Africa and the Far East. The Index includes dividends reinvested.
*** Source: Standard & Poor's Corporation--Reflects the reinvestment of income
dividends and, where applicable, capital gain distributions. The Standard
& Poor's 500 Composite Stock Price Index is a widely accepted unmanaged
index of U.S. stock market performance.
+ The Fund is currently waiving certain fees. Had the Fund not waived fees,
returns would have been lower. This voluntary waiver may be modified or
terminated at any time.
<PAGE>
EXCELSIOR INSTITUTIONAL TRUST
STATEMENTS OF ASSETS AND LIABILITIES
MAY 31, 1995
<TABLE>
<CAPTION>
TOTAL RETURN EQUITY BOND
EQUITY INCOME BOND INDEX INDEX
FUND FUND FUND FUND FUND
----------- ----------- ------------ ----------- -----------
<S> <C> <C> <C> <C> <C>
ASSETS:
Investment in
corresponding St.
James Portfolios
("Portfolio Series"),
at value (Note 1a).... $15,401,227 $33,441,042 $25,050,453 $13,632,257 $16,280,745
Receivable for fund
shares sold........... 7,800 -- 4,198 63,267 184,705
Receivable from
affiliate (Note 2d)... 9,036 13,925 14,532 4,258 5,516
Deferred organization
expenses (Note 1d).... 5,081 7,418 6,076 10,136 8,718
----------- ----------- ----------- ----------- -----------
Total Assets........... 15,423,144 33,462,385 25,075,259 13,709,918 16,479,684
----------- ----------- ----------- ----------- -----------
LIABILITIES:
Dividends payable...... -- 207,362 140,823 -- 102,656
Organization expenses
payable (Note 1d)..... 5,490 8,015 6,554 1,239 1,239
Servicing and fund
accounting agent fees
payable (Note 2a)..... 1,483 1,710 1,583 2,903 2,001
Payable for fund shares
redeemed.............. -- -- -- 589,308 797,440
Accrued expenses....... 7,494 15,683 12,800 9,405 11,809
----------- ----------- ----------- ----------- -----------
Total Liabilities...... 14,467 232,770 161,760 602,855 915,145
----------- ----------- ----------- ----------- -----------
NET ASSETS.............. $15,408,677 $33,229,615 $24,913,499 $13,107,063 $15,564,539
=========== =========== =========== =========== ===========
NET ASSETS CONSIST OF:
Paid-in capital........ $14,371,489 $31,884,251 $23,574,651 $9,570,077 $14,877,781
Undistributed net
investment income..... 62,264 -- -- 206,245 --
Accumulated
distributions in
excess of net
investment income..... -- (490) (289) -- (498)
Accumulated net
realized gain (loss)
from Portfolio Series. (284,225) 95,032 127,441 1,492,764 75,708
Net unrealized
appreciation from
Portfolio Series...... 1,259,149 1,250,822 1,211,696 1,837,977 611,548
----------- ----------- ----------- ----------- -----------
NET ASSETS APPLICABLE TO
SHARES OF BENEFICIAL
INTEREST OUTSTANDING... $15,408,677 $33,229,615 $24,913,499 $13,107,063 $15,564,539
----------- ----------- ----------- ----------- -----------
SHARES OUTSTANDING
(UNLIMITED NUMBER OF
$0.00001 PAR VALUE
SHARES AUTHORIZED FOR
EACH FUND)............. 1,993,077 4,536,042 3,333,802 1,584,640 2,145,324
----------- ----------- ----------- ----------- -----------
NET ASSET VALUE PER
SHARE (NET
ASSETS/SHARES
OUTSTANDING)........... $ 7.73 $ 7.33 $ 7.47 $ 8.27 $ 7.26
=========== =========== =========== =========== ===========
</TABLE>
See Notes to Financial Statements.
<PAGE>
EXCELSIOR INSTITUTIONAL TRUST
STATEMENTS OF ASSETS AND LIABILITIES (CONTINUED)
MAY 31, 1995
<TABLE>
<CAPTION>
SMALL EQUITY VALUE EQUITY INTERNATIONAL
CAPITALIZATION BALANCED GROWTH INCOME EQUITY
FUND FUND FUND FUND FUND
-------------- ----------- ----------- ------------ -------------
<S> <C> <C> <C> <C> <C>
ASSETS:
Investment in
corresponding St.
James Portfolios
("Portfolio Series"),
at value (Note 1a).... $13,654,584 $74,478,964 $52,352,701 $17,485,576 $8,839,921
Receivable for fund
shares sold........... 81,297 3,011 12,450 3,076 --
Receivable from
affiliate (Note 2d)... 6,673 12,202 7,890 4,052 6,956
Deferred organization
expenses (Note 1d).... 5,993 23,423 19,761 8,079 4,974
----------- ----------- ----------- ----------- ----------
Total Assets........... 13,748,547 74,517,600 52,392,802 17,500,783 8,851,851
----------- ----------- ----------- ----------- ----------
LIABILITIES:
Dividends payable...... -- -- -- -- --
Organization expenses
payable (Note 1d)..... 1,239 1,239 1,239 1,239 5,349
Servicing and fund
accounting agent fees
payable (Note 2a)..... 1,977 2,158 1,640 1,478 1,823
Payable for fund shares
redeemed.............. 406,267 -- 16,472 3,292 35,294
Accrued expenses....... 10,225 36,392 26,658 11,774 5,210
----------- ----------- ----------- ----------- ----------
Total Liabilities...... 419,708 39,789 46,009 17,783 47,676
----------- ----------- ----------- ----------- ----------
NET ASSETS.............. $13,328,839 $74,477,811 $52,346,793 $17,483,000 $8,804,175
=========== =========== =========== =========== ==========
NET ASSETS CONSIST OF:
Paid-in capital........ $12,078,956 $67,737,133 $46,537,785 $15,244,903 $7,888,513
Undistributed net
investment income..... 82,703 905,269 147,284 181,210 90,588
Accumulated
distributions in
excess of net
investment income..... -- -- -- -- --
Accumulated net
realized gain (loss)
from Portfolio Series. 221,734 796,208 2,653,866 372,484 9,534
Net unrealized
appreciation from
Portfolio Series...... 945,446 5,039,201 3,007,858 1,684,403 815,540
----------- ----------- ----------- ----------- ----------
NET ASSETS APPLICABLE TO
SHARES OF BENEFICIAL
INTEREST OUTSTANDING... $13,328,839 $74,477,811 $52,346,793 $17,483,000 $8,804,175
----------- ----------- ----------- ----------- ----------
SHARES OUTSTANDING
(UNLIMITED NUMBER OF
$0.00001 PAR VALUE
SHARES AUTHORIZED FOR
EACH FUND)............. 1,730,676 9,672,923 6,654,596 2,189,166 1,116,928
----------- ----------- ----------- ----------- ----------
NET ASSET VALUE PER
SHARE (NET
ASSETS/SHARES
OUTSTANDING)........... $ 7.70 $ 7.70 $ 7.87 $ 7.99 $ 7.88
=========== =========== =========== =========== ==========
</TABLE>
See Notes to Financial Statements.
<PAGE>
EXCELSIOR INSTITUTIONAL TRUST
STATEMENTS OF OPERATIONS
COMMENCEMENT OF OPERATIONS THROUGH MAY 31, 1995 (A)
<TABLE>
<CAPTION>
TOTAL RETURN
EQUITY INCOME BOND EQUITY BOND INDEX
FUND FUND FUND INDEX FUND FUND
---------- ---------- ------------ ---------- ----------
<S> <C> <C> <C> <C> <C>
INVESTMENT INCOME
ALLOCATED FROM
CORRESPONDING PORTFOLIO
SERIES (NOTE 1):
Dividend income (net of
withholding tax)...... $ 70,381 -- -- $ 520,064 --
Interest income........ 23,003 $ 758,404 $ 481,368 61,871 $1,428,523
Portfolio expenses
(b)(c)................ -- -- -- -- --
---------- ---------- ---------- ---------- ----------
Net investment income
from Portfolio Series. 93,384 758,404 481,368 581,935 1,428,523
---------- ---------- ---------- ---------- ----------
EXPENSES (NOTE 1F):
Servicing and fund
accounting agent fee
(Note 2a)............. 5,136 5,415 5,156 19,220 14,704
Shareholder servicing
fee (Note 2c)......... 9,128 25,991 16,689 49,133 47,933
Transfer agent fee
(Note 2b)............. 7,500 7,500 7,500 16,500 16,500
Auditing fees.......... 5,000 5,000 5,000 5,000 5,000
Legal fees............. 467 1,265 926 3,650 4,127
Prospectus and
shareholder reports... 58 2,143 2,103 3,455 3,736
Registration fees...... 4,968 11,008 8,139 3,325 5,163
Trustees' fees and
expenses (Note 2e).... 151 503 308 1,767 1,873
Amortization of
organization expenses
(Note 1d)............. 409 597 478 2,196 1,889
Insurance fees......... 401 419 410 2,687 2,514
Miscellaneous.......... 19 51 23 768 496
---------- ---------- ---------- ---------- ----------
Total Expenses......... 33,237 59,892 46,732 107,701 103,935
Less: Waiver of fees
(Note 2b, 2c)......... (16,628) (33,491) (24,189) (65,633) (64,433)
Reimbursement of
expenses (Note 2d).. (12,228) (13,925) (14,532) (18,484) (16,494)
---------- ---------- ---------- ---------- ----------
Net Expenses........... 4,381 12,476 8,011 23,584 23,008
---------- ---------- ---------- ---------- ----------
NET INVESTMENT INCOME... 89,003 745,928 473,357 558,351 1,405,515
---------- ---------- ---------- ---------- ----------
REALIZED AND UNREALIZED
GAIN (LOSS) FROM
PORTFOLIO SERIES:
Net realized gain
(loss)................ (284,225) 95,032 127,441 1,591,460 136,598
Change in unrealized
appreciation.......... 1,259,149 1,250,822 1,211,696 1,837,977 611,548
---------- ---------- ---------- ---------- ----------
NET REALIZED AND
UNREALIZED GAIN........ 974,924 1,345,854 1,339,137 3,429,437 748,146
---------- ---------- ---------- ---------- ----------
NET INCREASE IN NET
ASSETS RESULTING FROM
OPERATIONS............. $1,063,927 $2,091,782 $1,812,494 $3,987,788 $2,153,661
========== ========== ========== ========== ==========
---------------
(a)Commencement of
operations: 01/16/95 01/16/95 01/19/95 07/11/94 07/11/94
(b)Net of waiver and
reimbursement: $ 64,366 $ 111,184 $ 81,851 $ 149,465 $ 131,409
</TABLE>
(c) Portfolio Expenses are discussed in Note 2 of the Portfolio's Notes to
Financial Statements which are included elsewhere in this report.
See Notes to Financial Statements.
<PAGE>
EXCELSIOR INSTITUTIONAL TRUST
STATEMENTS OF OPERATIONS (CONTINUED)
COMMENCEMENT OF OPERATIONS THROUGH MAY 31, 1995 (A)
<TABLE>
<CAPTION>
SMALL EQUITY INTERNATIONAL
CAPITALIZATION BALANCED GROWTH VALUE EQUITY EQUITY
FUND FUND FUND INCOME FUND FUND
-------------- ---------- ---------- ------------ -------------
<S> <C> <C> <C> <C> <C>
INVESTMENT INCOME
ALLOCATED FROM
CORRESPONDING PORTFOLIO
SERIES (NOTE 1):
Dividend income (net of
withholding tax)...... $ 167,292 $ 795,425 $ 496,862 $ 779,636 $ 66,282
Interest income........ 31,685 2,401,613 112,874 31,027 31,668
Portfolio expenses
(b)(c)................ -- -- -- -- --
---------- ---------- ---------- ---------- --------
Net investment income
from Portfolio Series. 198,977 3,197,038 609,736 810,663 97,950
---------- ---------- ---------- ---------- --------
EXPENSES (NOTE 1F):
Servicing and fund
accounting agent fee
(Note 2a)............. 15,502 16,105 13,331 12,943 5,474
Shareholder servicing
fee (Note 2c)......... 29,092 140,879 110,023 39,382 6,583
Transfer agent fee
(Note 2b)............. 16,500 16,500 16,500 16,500 7,500
Auditing fees.......... 5,000 5,000 5,000 5,000 5,000
Legal fees............. 2,443 11,356 9,142 3,195 327
Prospectus and
shareholder reports... 3,419 9,621 7,377 3,807 35
Registration fees...... 4,198 23,390 16,080 5,286 2,733
Trustees' fees and
expenses (Note 2e).... 1,067 4,752 3,833 1,507 125
Amortization of
organization expenses
(Note 1d)............. 1,299 5,075 4,281 1,750 375
Insurance fees......... 1,685 6,584 5,312 2,197 397
Miscellaneous.......... 280 1,555 1,287 476 14
---------- ---------- ---------- ---------- --------
Total Expenses......... 80,485 240,817 192,166 92,043 28,563
Less: Waiver of fees
(Note 2b, 2c)......... (45,592) (157,379) (126,523) (55,882) (14,083)
Reimbursement of
expenses (Note 2d)... (20,928) (15,816) (12,832) (17,258) (7,896)
---------- ---------- ---------- ---------- --------
Net Expenses........... 13,965 67,622 52,811 18,903 6,584
---------- ---------- ---------- ---------- --------
NET INVESTMENT INCOME... 185,012 3,129,416 556,925 791,760 91,366
---------- ---------- ---------- ---------- --------
REALIZED AND UNREALIZED
GAIN (LOSS) FROM
PORTFOLIO SERIES:
Net realized gain
(loss)................ 247,776 1,047,160 2,653,866 511,045 8,756
Change in unrealized
appreciation.......... 945,446 5,039,201 3,007,858 1,684,403 815,540
---------- ---------- ---------- ---------- --------
NET REALIZED AND
UNREALIZED GAIN........ 1,193,222 6,086,361 5,661,724 2,195,448 824,296
---------- ---------- ---------- ---------- --------
NET INCREASE IN NET
ASSETS RESULTING FROM
OPERATIONS............. $1,378,234 $9,215,777 $6,218,649 $2,987,208 $915,662
========== ========== ========== ========== ========
---------------
(a)Commencement of
operations: 07/11/94 07/11/94 07/11/94 07/11/94 01/24/95
(b)Net of waiver and
reimbursement: $ 154,942 $ 503,730 $ 405,337 $ 183,593 $ 58,757
(c) Portfolio Expenses
are discussed in
Note 2 of
the Portfolio's
Notes to Financial
Statements which are
included elsewhere
in this report.
</TABLE>
See Notes to Financial Statements.
<PAGE>
EXCELSIOR INSTITUTIONAL TRUST
STATEMENTS OF CHANGES IN NET ASSETS
COMMENCEMENT OF OPERATIONS THROUGH MAY 31, 1995 (A)
<TABLE>
<CAPTION>
TOTAL RETURN
BOND EQUITY INDEX BOND INDEX
EQUITY FUND INCOME FUND FUND FUND FUND
----------- ----------- ------------ ------------ ------------
<S> <C> <C> <C> <C> <C>
INCREASE (DECREASE) IN
NET ASSETS FROM:
OPERATIONS:
Net investment income.. $ 89,003 $ 745,928 $ 473,357 $ 558,351 $ 1,405,515
Net realized gain
(loss) from Portfolio
Series................ (284,225) 95,032 127,441 1,591,460 136,598
Net change in
unrealized
appreciation from
Portfolio Series for
the period............ 1,259,149 1,250,822 1,211,696 1,837,977 611,548
----------- ----------- ----------- ------------ ------------
Net increase in net
assets resulting
from operations...... 1,063,927 2,091,782 1,812,494 3,987,788 2,153,661
----------- ----------- ----------- ------------ ------------
DISTRIBUTIONS TO
SHAREHOLDERS:
From net investment
income................ (26,739) (745,928) (473,357) (352,106) (1,405,515)
In excess of net
investment income..... -- (490) (289) -- (498)
From net realized
gains................. -- -- -- (98,696) (60,890)
----------- ----------- ----------- ------------ ------------
Total distributions
to shareholders...... (26,739) (746,418) (473,646) (450,802) (1,466,903)
----------- ----------- ----------- ------------ ------------
TRANSACTIONS IN SHARES
OF BENEFICIAL INTEREST:
Net proceeds from
shares sold........... 14,609,717 31,900,620 23,574,319 34,253,890 33,020,207
Reinvestment of
dividends............. -- -- 8,583 402 1,162
Cost of shares
redeemed.............. (238,235) (16,376) (8,258) (24,700,882) (18,160,255)
----------- ----------- ----------- ------------ ------------
Net increase in net
assets from
beneficial interest
transactions.......... 14,371,482 31,884,244 23,574,644 9,553,410 14,861,114
----------- ----------- ----------- ------------ ------------
TOTAL INCREASE IN NET
ASSETS.............. 15,408,670 33,229,608 24,913,492 13,090,396 15,547,872
NET ASSETS:
Beginning of period
(Note 1).............. 7 7 7 16,667 16,667
----------- ----------- ----------- ------------ ------------
End of period (b)...... $15,408,677 $33,229,615 $24,913,499 $ 13,107,063 $ 15,564,539
=========== =========== =========== ============ ============
CAPITAL SHARE
TRANSACTIONS:
Shares sold............ 2,026,411 4,538,335 3,333,799 4,842,131 4,741,011
Shares issued for
dividend reinvestment. -- -- 1,176 57 167
Shares redeemed........ (33,335) (2,294) (1,174) (3,259,929) (2,598,235)
----------- ----------- ----------- ------------ ------------
NET INCREASE IN SHARES
OUTSTANDING: 1,993,076 4,536,041 3,333,801 1,582,259 2,142,943
=========== =========== =========== ============ ============
---------------
(a) Commencement of
operations: 01/16/95 01/16/95 01/19/95 07/11/94 07/11/94
(b) Including
undistributed net
investment income: $ 62,264 -- -- $ 206,245 --
</TABLE>
See Notes to Financial Statements.
<PAGE>
EXCELSIOR INSTITUTIONAL TRUST
STATEMENTS OF CHANGES IN NET ASSETS (CONTINUED)
COMMENCEMENT OF OPERATIONS THROUGH MAY 31, 1995 (A)
<TABLE>
<CAPTION>
SMALL EQUITY INTERNATIONAL
CAPITALIZATION BALANCED GROWTH VALUE EQUITY EQUITY
FUND FUND FUND INCOME FUND FUND
-------------- ----------- ------------ ------------ -------------
<S> <C> <C> <C> <C> <C>
INCREASE (DECREASE) IN
NET ASSETS FROM:
OPERATIONS:
Net investment income.. $ 185,012 $ 3,129,416 $ 556,925 $ 791,760 $ 91,366
Net realized gain
(loss) from Portfolio
Series................ 247,776 1,047,160 2,653,866 511,045 8,756
Net change in
unrealized
appreciation from
Portfolio Series for
the period............ 945,446 5,039,201 3,007,858 1,684,403 815,540
----------- ----------- ------------ ------------ ----------
Net increase in net
assets resulting
from operations...... 1,378,234 9,215,777 6,218,649 2,987,208 915,662
----------- ----------- ------------ ------------ ----------
DISTRIBUTIONS TO
SHAREHOLDERS:
From net investment
income................ (102,309) (2,224,147) (409,641) (610,550) --
In excess of net
investment income..... -- -- -- -- --
From net realized
gains................. (26,042) (250,952) -- (138,561) --
----------- ----------- ------------ ------------ ----------
Total distributions
to shareholders...... (128,351) (2,475,099) (409,641) (749,111) --
----------- ----------- ------------ ------------ ----------
TRANSACTIONS IN SHARES
OF BENEFICIAL INTEREST:
Net proceeds from
shares sold........... 20,556,708 96,454,563 73,548,734 26,438,429 8,407,110
Reinvestment of
dividends............. 164 685 143 753 --
Cost of shares
redeemed.............. (8,494,583) (28,734,782) (27,027,759) (11,210,946) (518,604)
----------- ----------- ------------ ------------ ----------
Net increase in net
assets from
beneficial interest
transactions.......... 12,062,289 67,720,466 46,521,118 15,228,236 7,888,506
----------- ----------- ------------ ------------ ----------
TOTAL INCREASE IN NET
ASSETS.............. 13,312,172 74,461,144 52,330,126 17,466,333 8,804,168
NET ASSETS:
Beginning of period
(Note 1).............. 16,667 16,667 16,667 16,667 7
----------- ----------- ------------ ------------ ----------
End of period (b)...... $13,328,839 $74,477,811 $ 52,346,793 $ 17,483,000 $8,804,175
=========== =========== ============ ============ ==========
CAPITAL SHARE
TRANSACTIONS:
Shares sold............ 2,912,446 13,689,338 10,437,754 3,737,327 1,189,132
Shares issued for
dividend reinvestment. 24 99 20 108 --
Shares redeemed........ (1,184,175) (4,018,895) (3,785,559) (1,550,650) (72,205)
----------- ----------- ------------ ------------ ----------
NET INCREASE IN SHARES
OUTSTANDING: 1,728,295 9,670,542 6,652,215 2,186,785 1,116,927
=========== =========== ============ ============ ==========
---------------
(a) Commencement of
operations: 07/11/94 07/11/94 07/11/94 07/11/94 01/24/95
(b) Including
undistributed net
investment income: $ 82,703 $ 905,269 $ 147,284 $ 181,210 $ 90,588
</TABLE>
See Notes to Financial Statements.
<PAGE>
EXCELSIOR INSTITUTIONAL TRUST
FINANCIAL HIGHLIGHTS
COMMENCEMENT OF OPERATIONS THROUGH MAY 31, 1995(A)
Selected data for a share outstanding throughout each period are as follows:
<TABLE>
<CAPTION>
TOTAL RETURN EQUITY BOND
EQUITY INCOME BOND INDEX INDEX
FUND FUND FUND FUND FUND
-------- -------- ------------ -------- --------
<S> <C> <C> <C> <C> <C>
NET ASSET VALUE, BEGINNING
OF PERIOD................ $ 7.00 $ 7.00 $ 7.00 $ 7.00 $ 7.00
-------- -------- -------- -------- --------
INVESTMENT OPERATIONS:
Net investment income.... 0.05 0.19 0.18 0.26 0.46
Net realized and
unrealized gain from
Portfolio Series........ 0.70 0.33 0.47 1.18 0.28
-------- -------- -------- -------- --------
TOTAL FROM INVESTMENT
OPERATIONS.............. 0.75 0.52 0.65 1.44 0.74
-------- -------- -------- -------- --------
DISTRIBUTIONS:
From net investment
income.................. (0.02) (0.19) (0.18) (0.13) (0.46)
In excess of net
investment income....... -- -- -- -- --
From net realized gains.. -- -- -- (0.04) (0.02)
-------- -------- -------- -------- --------
NET ASSET VALUE, END OF
PERIOD................... $ 7.73 $ 7.33 $ 7.47 $ 8.27 $ 7.26
======== ======== ======== ======== ========
TOTAL RETURN (B)(E)....... 10.80% 7.51% 9.40% 20.96% 11.03%
RATIOS AND SUPPLEMENTAL
DATA:
Ratios to Average Net
Assets
Expenses (c)(d).......... 0.12% 0.12% 0.12% 0.12% 0.12%
Net Investment Income
(c)..................... 2.44% 7.17% 7.09% 2.84% 7.33%
Net Assets at end of
Period (000's omitted)... $15,409 $33,230 $24,913 $13,107 $15,565
---------------
(a) Commencement of
operations: 01/16/95 01/16/95 01/19/95 07/11/94 07/11/94
(b) Not annualized
(c) Annualized
(d) 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
from commencement of
operations to May 31,
1995 would have been as
follows:
Expenses................ 2.67% 1.65% 1.93% 1.31% 1.23%
Net Investment Income
(Loss)................. (0.12%) 5.65% 5.28% 1.65% 6.22%
(e) Each investment
advisor has agreed to
waive all investment
advisory fees. While no
Portfolio pays any fee to
its advisor, each
institutional investor
enters into an asset
management services
agreement with U.S. Trust
or U.S. Trust Pacific and
agrees to pay annual fees
calculated as a specific
percentage of average net
assets.
</TABLE>
See Notes to Financial Statements.
<PAGE>
EXCELSIOR INSTITUTIONAL TRUST
FINANCIAL HIGHLIGHTS (CONTINUED)
COMMENCEMENT OF OPERATIONS THROUGH MAY 31, 1995(A)
Selected data for a share outstanding throughout each period are as follows:
<TABLE>
<CAPTION>
SMALL EQUITY INTERNATIONAL
CAPITALIZATION BALANCED GROWTH VALUE EQUITY EQUITY
FUND FUND FUND INCOME FUND FUND
-------------- -------- -------- ------------ -------------
<S> <C> <C> <C> <C> <C>
NET ASSET VALUE,
BEGINNING OF PERIOD.... $ 7.00 $ 7.00 $ 7.00 $ 7.00 $ 7.00
-------- -------- -------- -------- --------
INVESTMENT OPERATIONS:
Net investment income.. 0.11 0.35 0.08 0.34 0.08
Net realized and
unrealized gain from
Portfolio Series...... 0.66 0.64 0.85 0.97 0.80
-------- -------- -------- -------- --------
TOTAL FROM INVESTMENT
OPERATIONS............ 0.77 0.99 0.93 1.31 0.88
-------- -------- -------- -------- --------
DISTRIBUTIONS:
From net investment
income................ (0.06) (0.26) (0.06) (0.26) --
In excess of net
investment income..... -- -- -- -- --
From net realized
gains................. (0.01) (0.03) -- (0.06) --
-------- -------- -------- -------- --------
NET ASSET VALUE, END OF
PERIOD................. $ 7.70 $ 7.70 $ 7.87 $ 7.99 $ 7.88
======== ======== ======== ======== ========
TOTAL RETURN (B)(E)..... 11.10% 14.59% 13.38% 19.32% 12.57%
RATIOS AND SUPPLEMENTAL
DATA:
Ratios to Average Net
Assets
Expenses (c)(d)........ 0.12% 0.12% 0.12% 0.12% 0.25%
Net Investment Income
(c)................... 1.59% 5.55% 1.27% 5.03% 3.47%
Net Assets at end of
Period (000's omitted). $13,329 $74,478 $52,347 $17,483 $ 8,804
---------------
(a) Commencement of
operations: 07/11/94 07/11/94 07/11/94 07/11/94 01/24/95
(b) Not annualized
(c) Annualized
(d) 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
from commencement of
operations to May 31,
1995 would have been as
follows:
Expenses.............. 2.02% 1.32% 1.36% 1.75% 3.32%
Net Investment Income
(Loss)............... (0.31%) 4.35% 0.03% 3.40% 0.40%
(e) Each investment
advisor has agreed to
waive all investment
advisory fees. While no
Portfolio pays any fee
to its advisor, each
institutional investor
enters into an asset
management services
agreement with U.S.
Trust or U. S. Trust
Pacific and agrees to
pay annual fees
calculated as a
specific percentage of
average net assets.
</TABLE>
See Notes to Financial Statements.
<PAGE>
EXCELSIOR INSTITUTIONAL TRUST
NOTES TO FINANCIAL STATEMENTS
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, ten of which are active and described herein (each a "Fund",
collectively, the "Funds"), as follows: Excelsior Institutional Equity Fund
("Equity Fund"), Excelsior Institutional Income Fund ("Income Fund"),
Excelsior Institutional Total Return Bond Fund ("Total Return Bond Fund"),
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"), Excelsior Institutional Value Equity Income Fund ("Value Equity
Income Fund") and Excelsior Institutional International Equity Fund
("International Equity Fund"). The Trust had no operations until July 11, 1994
(when operations commenced with respect to the Equity Index, Bond Index, Small
Cap, Balanced, Equity Growth and Value Equity Income Funds) 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 Equity, Income, Total Return Bond and
International Equity Funds commenced operations on January 16, 1995, January
16, 1995, January 19, 1995 and January 24, 1995, respectively.
On April 27, 1995, Excelsior Institutional Trust's Board of Trustees voted
not to renew the Trust's distribution agreement with UST Distributors, a
wholly-owned subsidiary of Concord Holding Corporation, after its July 31,
1995 expiration, and authorized the Trust to enter into negotiations for a new
distributor.
The Trust seeks to achieve each Fund's investment objective by investing all
of a 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. 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 May 31, 1995:
<TABLE>
<CAPTION>
FUND PERCENTAGE PORTFOLIO
---- ---------- ---------
<S> <C> <C>
Equity Fund........................... 99.99% Equity Portfolio
Income Fund........................... 99.99% Income Portfolio
Total Return Bond Fund................ 99.99% Total Return Bond Portfolio
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
International Equity Fund............. 99.99% International Equity Portfolio
</TABLE>
<PAGE>
EXCELSIOR INSTITUTIONAL TRUST
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
United States Trust Company of the Pacific Northwest ("U.S. Trust Pacific")
serves as the investment advisor for the Portfolios corresponding to the Funds
listed below. 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
Equity Growth Fund...... Luther King Capital Management
Value Equity Income
Fund................... Spare Kaplan Bischel & Associates
International Equity
Fund................... Harding, Loevner Management, L.P.
</TABLE>
U.S. Trust serves directly as the investment advisor for the Portfolios
corresponding to the Equity Fund, Income Fund and Total Return Bond Fund. 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 the schedule of investments,
are included elsewhere in this report and should be read in conjunction with
the Trust's financial statements. An advisory fee is charged to the
Portfolios.
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 of 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, Equity Index Fund and International Equity 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 Equity
Fund, Income Fund, Total Return Bond Fund, 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
Funds:
<TABLE>
<S> <C>
Equity Fund............. $ 5,490
Income Fund............. $ 8,015
Total Return Bond Fund.. $ 6,554
Equity Index Fund....... $12,332
Bond Index Fund......... $10,607
</TABLE>
<TABLE>
<S> <C>
Small Cap Fund..................................................... $ 7,292
Balanced Fund...................................................... $28,498
Equity Growth Fund................................................. $24,042
Value Equity Income Fund........................................... $ 9,829
International Equity Fund.......................................... $ 5,349
</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.
<PAGE>
EXCELSIOR INSTITUTIONAL TRUST
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
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 of 1986, as amended, 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 the net income of each Portfolio is allocated pro rata among
its corresponding Fund and the other investors in each 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 servicing and fund accounting 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 plus out of pocket expenses. For
the period ended May 31, 1995, fund accounting fees for each Fund amounted to:
<TABLE>
<S> <C>
Equity Fund............. $ 4,493
Income Fund............. $ 4,526
Total Return Bond Fund.. $ 4,395
Equity Index Fund....... $10,677
Bond Index Fund......... $10,677
</TABLE>
<TABLE>
<S> <C>
Small Cap Fund..................................................... $10,677
Balanced Fund...................................................... $10,677
Equity Growth Fund................................................. $10,677
Value Equity Income Fund........................................... $10,677
International Equity Fund.......................................... $ 4,263
</TABLE>
b) Mutual Funds Service Company ("MFSC"), an affiliate of U.S. Trust, serves
as the Trust's transfer agent. For its transfer agent services, MFSC receives
a fee payable monthly of $18,000 per year per Fund. For the period ended May
31, 1995, MFSC has voluntarily agreed to waive transfer agency fees in the
amount of:
<TABLE>
<S> <C>
Equity Fund............. $ 7,500
Income Fund............. $ 7,500
Total Return Bond Fund.. $ 7,500
Equity Index Fund....... $16,500
Bond Index Fund......... $16,500
</TABLE>
<TABLE>
<S> <C>
Small Cap Fund..................................................... $16,500
Balanced Fund...................................................... $16,500
Equity Growth Fund................................................. $16,500
Value Equity Income Fund........................................... $16,500
International Equity Fund.......................................... $ 7,500
</TABLE>
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,
<PAGE>
EXCELSIOR INSTITUTIONAL TRUST
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
certain Shareholder Service Agents may perform record keeping 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 the Shareholder Service Agents.
For the period ended May 31, 1995, U.S. Trust voluntarily agreed to waive all
of its shareholder servicing fees amounting to the following:
<TABLE>
<S> <C>
Equity Fund............. $ 9,128
Income Fund............. $25,991
Total Return Bond Fund.. $16,689
Equity Index Fund....... $49,133
Bond Index Fund......... $47,933
</TABLE>
<TABLE>
<S> <C>
Small Cap Fund.................................................... $ 29,092
Balanced Fund..................................................... $140,879
Equity Growth Fund................................................ $110,023
Value Equity Income Fund.......................................... $ 39,382
International Equity Fund......................................... $ 6,583
</TABLE>
d) U.S. Trust and U.S. Trust Pacific have voluntarily agreed to waive
certain of their fees, and U.S. Trust 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 each
Fund's average daily net assets, except that with respect to the International
Equity Fund, the combined annual operating expenses of the Fund and its
corresponding Portfolio will be 0.25% of the Fund's average daily net assets.
For the period ended May 31, 1995 U.S. Trust voluntarily reimbursed the Trust
the following amounts:
<TABLE>
<S> <C>
Equity Fund............. $12,228
Income Fund............. $13,925
Total Return Bond Fund.. $14,532
Equity Index Fund....... $18,484
Bond Index Fund......... $16,494
</TABLE>
<TABLE>
<S> <C>
Small Cap Fund............. $20,928
Balanced Fund.............. $15,816
Equity Growth Fund......... $12,832
Value Equity Income Fund... $17,258
International Equity Fund.. $ 7,896
</TABLE>
e) Independent Trustees of the Trust receive an annual retainer of $4,000
and an additional $250 for each meeting of the Board of Trustees attended. In
addition, the Trust reimburses Independent Trustees for reasonable expenses
incurred when acting in their capacity as Trustees. Officers and Trustees
deemed to be affiliated or "interested parties" under the Act of the Trust or
Portfolio Series receive no compensation from the Trust or Portfolio Series
for their services.
3. INVESTMENT TRANSACTIONS
Additions and reductions in the Trust's investment in the Portfolio Series
for the period ended May 31, 1995 amounted to:
<TABLE>
<CAPTION>
ADDITIONS REDUCTIONS
----------- -----------
<S> <C> <C>
Equity Fund............................................ $14,601,917 $ 269,006
Income Fund............................................ $31,900,620 $ 563,843
Total Return Bond Fund................................. $23,570,121 $ 340,179
Equity Index Fund...................................... $34,190,623 $24,586,405
Bond Index Fund........................................ $32,835,502 $18,748,092
Small Cap Fund......................................... $20,475,411 $ 8,229,692
Balanced Fund.......................................... $96,451,552 $31,272,654
Equity Growth Fund..................................... $73,536,284 $27,471,709
Value Equity Income Fund............................... $26,435,353 $11,972,555
International Equity Fund.............................. $ 8,407,110 $ 489,441
</TABLE>
<PAGE>
REPORT OF ERNST & YOUNG LLP, INDEPENDENT AUDITORS
TO THE SHAREHOLDERS AND BOARD OF TRUSTEES EXCELSIOR INSTITUTIONAL TRUST
We have audited the accompanying statements of assets and liabilities of the
Excelsior Institutional Trust, (comprising, respectively, the Excelsior
Institutional Equity Fund, Excelsior Institutional Income Fund, Excelsior
Institutional Total Return Bond Fund, 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, and Excelsior Institutional International Equity Fund) as of May 31,
1995, and the related statements of operations, the statements of changes in
net assets, and the financial highlights for the period indicated therein.
These financial statements and financial highlights are the responsibility of
the Trust's management. Our responsibility is to express an opinion on these
financial statements and financial highlights based on our audits.
We conducted our audits in accordance with generally accepted auditing
standards. Those standards require that we plan and perform the audit to
obtain reasonable assurance about whether the financial statements and
financial highlights are free of material misstatement. An audit includes
examining, on a test basis, evidence supporting the amounts and disclosures in
the financial statements. An audit also includes assessing the accounting
principles used and significant estimates made by management, as well as
evaluating the overall financial statement presentation. We believe that our
audits provide a reasonable basis for our opinion.
In our opinion, the financial statements and financial highlights referred
to above present fairly, in all material respects, the financial position of
each of the respective Funds constituting the Excelsior Institutional Trust at
May 31, 1995, the results of their operations, the changes in their net assets
and financial highlights for the period indicated therein, in conformity with
generally accepted accounting principles.
(ART)
Boston, Massachusetts
July 25, 1995
<PAGE>
ST. JAMES PORTFOLIOS
SCHEDULE OF INVESTMENTS
MAY 31, 1995
EQUITY PORTFOLIO
See Notes to Financial Statements.
<TABLE>
<CAPTION>
SHARES VALUE
------ -----------
<C> <S> <C>
COMMON STOCK--95.58%
AIRCRAFT & PARTS--3.44%
4,275 Boeing.................................................... $ 251,691
5,000 Sundstrand................................................ 277,500
-----------
529,191
-----------
AUTOMOTIVE--3.21%
10,975 Allen Group............................................... 256,541
5,525 Varity.................................................... 238,266
-----------
494,807
-----------
BANKING--4.87%
7,375 First American Corporation................................ 255,360
5,690 Integra Financial......................................... 270,986
6,725 West One Bancorp.......................................... 225,288
-----------
751,634
-----------
BROADCASTING--1.61%
14,375 Comcast (Class A)......................................... 247,969
-----------
CHEMICALS--5.65%
5,075 Air Products & Chemicals.................................. 269,609
5,215 Grace (W.R.) & Co. ....................................... 335,064
13,325 RPM....................................................... 264,834
-----------
869,507
-----------
COMMUNICATION--6.68%
6,090 AT & T.................................................... 309,067
5,950 DSC Communications*....................................... 219,405
3,550 Ericsson (L. M.) Telephone AB ADR......................... 260,481
4,000 Motorola.................................................. 239,500
-----------
1,028,453
-----------
COMPUTERS & EQUIPMENT--5.99%
5,425 Adobe Systems............................................. 280,744
7,525 Honeywell................................................. 298,178
7,875 Legent*................................................... 343,547
-----------
922,469
-----------
CONGLOMERATES--1.73%
2,375 I T T..................................................... 265,703
-----------
CONSTRUCTION EQUIPMENT--1.58%
3,700 Dover..................................................... 242,813
-----------
CONSUMER GOODS--7.48%
4,875 Eastman Kodak............................................. 294,327
</TABLE>
<TABLE>
<CAPTION>
SHARES VALUE
------ -----------
<C> <S> <C>
CONSUMER GOODS--(CONTINUED)
10,898 Mattel.................................................... $ 272,450
6,150 Premark International..................................... 306,731
3,875 Procter & Gamble.......................................... 278,516
-----------
1,152,024
-----------
CONSUMER SERVICES--1.76%
9,050 Stewart Enterprises....................................... 271,500
-----------
ELECTRICAL EQUIPMENT--3.86%
8,350 Newbridge Networks*....................................... 295,381
5,725 Varian Associates......................................... 299,847
-----------
595,228
-----------
FINANCIAL SERVICES--5.16%
10,250 Charter One Financial..................................... 256,250
5,800 Dean Witter Discover & Co. ............................... 276,225
14,300 Mercury Financial......................................... 262,763
-----------
795,238
-----------
FOOD & BEVERAGES--2.16%
6,775 PepsiCo................................................... 331,975
-----------
FOREST PRODUCTS--1.65%
5,600 Pentair................................................... 253,400
-----------
HEALTHCARE SERVICES--9.58%
7,175 Bausch & Lomb............................................. 291,483
8,200 DENTSPLY International.................................... 292,125
4,450 Johnson & Johnson......................................... 294,813
3,340 Pfizer.................................................... 294,338
3,650 Warner Lambert............................................ 302,494
-----------
1,475,253
-----------
HOUSEHOLD APPLIANCES &
FURNITURE--5.02%
11,750 Heilig Meyers............................................. 280,531
5,750 Leggett & Platt........................................... 240,063
4,425 Whirlpool................................................. 252,778
-----------
773,372
-----------
INDUSTRIAL DIVERSIFIED--1.82%
4,830 General Electric.......................................... 280,140
-----------
INSURANCE--1.58%
2,950 Chubb..................................................... 243,006
-----------
</TABLE>
<PAGE>
ST. JAMES PORTFOLIOS
SCHEDULE OF INVESTMENTS
MAY 31, 1995
EQUITY PORTFOLIO (CONTINUED)
See Notes to Financial Statements.
<TABLE>
<CAPTION>
SHARES VALUE
------ ----------
<C> <S> <C>
COMMON STOCK (CONTINUED)
MACHINERY--1.92%
8,193 Thermo Electron*........................................... $ 294,948
----------
OFFICE EQUIPMENT--0.08%
575 Miller (Herman)............................................ 12,291
----------
OIL & GAS--7.11%
4,075 Amoco...................................................... 278,628
5,625 Anadarko Petroleum......................................... 243,984
2,495 Mobil...................................................... 250,436
2,540 Royal Dutch Petroleum...................................... 321,945
----------
1,094,993
----------
PRINTING & PUBLISHING--2.18%
6,550 Houghton Mifflin........................................... 336,506
----------
RECREATION--3.16%
10,525 Carnival (Class A)......................................... 244,706
9,925 Harley-Davidson............................................ 241,922
----------
486,628
----------
RETAIL--1.48%
8,165 Albertson's................................................ 228,620
----------
STEEL--3.29%
5,300 Nucor...................................................... 253,075
12,250 Worthington Industries..................................... 254,188
----------
507,263
----------
TRUCKING--1.53%
14,700 Celadon Group*............................................. 235,200
----------
TOTAL COMMON STOCK
(Cost $13,460,971)........................................ 14,720,131
----------
</TABLE>
---------------------
*Non-income producing security
ADRAmerican Depository Receipt
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT VALUE
--------- -----------
<C> <S> <C>
SHORT-TERM OBLIGATION--6.68%
REPURCHASE AGREEMENT
$1,029,132 Cantor Fitzgerald, 5.46%, dated 5/31/95 due 6/01/95,
proceeds $1,029,288 (collateralized by various U.S.
Treasury Bills, Notes & Bonds with rates from 5.75%
to 7.25%, due from 3/7/96 to 5/15/16, valued at
$1,058,452)
(Cost $1,029,132).................................. $ 1,029,132
-----------
TOTAL INVESTMENTS--102.26%
(Cost $14,490,103)............................................. 15,749,263
OTHER ASSETS AND LIABILITIES (NET)--(2.26%)..................... (347,926)
-----------
TOTAL NET ASSETS--100.00%....................................... $15,401,337
===========
</TABLE>
<PAGE>
ST. JAMES PORTFOLIOS
SCHEDULE OF INVESTMENTS
MAY 31, 1995
INCOME PORTFOLIO
See Notes to Financial Statements.
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT VALUE
---------- -----------
<C> <S> <C>
CORPORATE OBLIGATIONS--12.68%
BANKING--6.39%
$1,000,000 Bank of New York, 8.50%, due 12/15/04............... $ 1,099,964
1,000,000 Citicorp, 8.80%, due 2/01/00........................ 1,037,039
-----------
2,137,003
-----------
ELECTRONICS--3.09%
1,000,000 Rockwell International, 7.625%, due 2/17/98......... 1,034,075
-----------
FINANCIAL SERVICES--3.20%
1,000,000 Ford Motor Credit Corporation, 8.20%, due 2/15/02... 1,070,356
-----------
TOTAL CORPORATE OBLIGATIONS
(Cost $4,008,795).................................. 4,241,434
-----------
U.S. GOVERNMENT AGENCY OBLIGATIONS--27.66%
1,000,000 Federal Home Loan Banks
8.585%, due 1/11/00................................. 1,016,500
Federal National Mortgage Association
1,000,000 7.26%, due 10/16/97................................. 1,004,330
3,000,000 8.59%, due 2/03/05.................................. 3,153,507
971,905 Government National Mortgage Association
8.50%, due 11/15/24................................. 1,007,744
Student Loan Marketing Association
2,000,000 7.62%, due 4/18/00.................................. 2,053,418
1,000,000 9.01%, due 12/02/04................................. 1,014,512
-----------
TOTAL U.S. GOVERNMENT AGENCY OBLIGATIONS
(Cost $9,068,316).................................. 9,250,011
-----------
</TABLE>
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT VALUE
---------- -----------
<C> <S> <C>
UNITED STATES TREASURY
OBLIGATIONS--56.63%
United States Treasury Notes
$ 300,000 7.875%, due 7/31/96.................................. $ 306,656
4,000,000 7.500%, due 1/31/97.................................. 4,102,500
2,000,000 7.375%, due 11/15/97................................. 2,065,622
4,500,000 7.750%, due 1/31/00.................................. 4,805,154
3,000,000 6.250%, due 5/31/00.................................. 3,022,500
4,000,000 7.875%, due 11/15/04................................. 4,431,248
200,000 United States Treasury Bonds 11.50%, due 11/15/95.... 205,437
-----------
TOTAL UNITED STATES TREASURY OBLIGATIONS (Cost
$18,102,624)........................................ 18,939,117
-----------
SHORT-TERM OBLIGATION--1.28%
TIME DEPOSIT
426,644 National Westminster Bank (Nassau), 5.46%, due
6/01/95
(Cost $426,644)..................................... 426,644
-----------
TOTAL INVESTMENTS--98.25%
(Cost $31,606,379).............................................. 32,857,206
OTHER ASSETS AND LIABILITIES
(NET)--1.75%.................................................... 583,943
-----------
TOTAL NET ASSETS--100.00%........................................ $33,441,149
===========
</TABLE>
<PAGE>
ST. JAMES PORTFOLIOS
SCHEDULE OF INVESTMENTS
MAY 31, 1995
TOTAL RETURN BOND PORTFOLIO
See Notes to Financial Statements.
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT VALUE
---------- -----------
<C> <S> <C>
CORPORATE OBLIGATIONS--16.19%
AEROSPACE--2.16%
$ 500,000 Rockwell International, 7.875%, due 2/15/05.......... $ 540,147
-----------
BANKING--4.21%
1,000,000 Republic National Bank of New York, 7.75%, due
5/15/09............................................. 1,054,172
-----------
COMMUNICATIONS--6.08%
1,500,000 AT&T, 7.00%, due 5/15/05............................. 1,521,974
-----------
FINANCIAL SERVICES--2.71%
500,000 Ford Motor Credit Corp., 8.20%, due 2/15/02.......... 535,178
50,000 General Motors Acceptance Corp., 9.625%, due 5/15/00. 56,001
25,000 General Motors Acceptance Corp., 7.00%, due 9/15/02 25,062
50,000 Texaco Capital, 9.75%, due 3/15/20................... 63,001
-----------
679,242
-----------
FOOD & TOBACCO--0.20%
50,000 Philip Morris, 8.875%, due 7/01/96................... 51,256
-----------
HOTELS--0.20%
50,000 Marriott Corp. MTN, 9.875%, due 11/01/97............. 49,836
-----------
OFFICE EQUIPMENT--0.21%
50,000 Xerox Corp. MTN, 9.625%, due 9/01/97................. 53,462
-----------
RETAIL--0.42%
50,000 Dayton Hudson, 9.75%, due 11/01/98................... 54,840
50,000 Sears Roebuck & Co., 9.00%, due 9/15/96.............. 51,686
-----------
106,526
-----------
TOTAL CORPORATE OBLIGATIONS
(Cost $3,883,534)................................... 4,056,615
-----------
</TABLE>
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT VALUE
---------- -----------
<C> <S> <C>
U.S. GOVERNMENT AGENCY OBLIGATIONS--24.81%
Federal National Mortgage Association
$1,990,000 7.55%, due 6/10/04................................ $ 2,056,888
200,000 8.50%, due 2/01/05................................ 214,490
1,000,000 7.25%, due 6/01/05................................ 1,000,000
Government National Mortgage Association
2,874,279 8.00%, due 2/15/24................................ 2,944,316
-----------
TOTAL U.S. GOVERNMENT AGENCY OBLIGATIONS
(Cost $5,925,750)................................ 6,215,694
-----------
UNITED STATES TREASURY
OBLIGATIONS--55.52%
United States Treasury Notes
1,000,000 7.250%, due 2/15/98............................... 1,032,500
500,000 7.125%, due 9/30/99............................... 520,468
1,000,000 6.000%, due 10/15/99.............................. 998,436
3,000,000 7.500%, due 10/31/99.............................. 3,165,933
3,000,000 5.750%, due 8/15/03............................... 2,895,000
3,500,000 7.250%, due 5/15/04............................... 3,714,375
United States Treasury Bonds
1,500,000 7.250%, due 5/15/16............................... 1,581,562
-----------
TOTAL UNITED STATES TREASURY OBLIGATIONS
(Cost $13,159,597)............................... 13,908,274
-----------
SHORT-TERM OBLIGATION--6.33%
TIME DEPOSIT
1,584,639 National Westminster Bank (Nassau), 5.46%, due
6/01/95
(Cost $1,584,639)................................ 1,584,639
-----------
TOTAL INVESTMENTS--102.85%
(Cost $24,553,520)........................................... 25,765,222
OTHER ASSETS AND LIABILITIES
(NET)--(2.85%)............................................... (714,660)
-----------
TOTAL NET ASSETS--100.00%..................................... $25,050,562
===========
</TABLE>
<PAGE>
ST. JAMES PORTFOLIOS
SCHEDULE OF INVESTMENTS
MAY 31, 1995
EQUITY MARKET PORTFOLIO
See Notes to Financial Statements.
<TABLE>
<CAPTION>
SHARES VALUE
------ -----------
<C> <S> <C>
COMMON STOCK--93.94%
AEROSPACE & AIRCRAFT--4.61%
900 Allied Signal............................................. $ 36,338
100 Ball...................................................... 3,325
1,100 Boeing.................................................... 64,762
200 General Dynamics.......................................... 8,750
5,600 General Electric.......................................... 324,799
100 Goodrich (B.F.)........................................... 4,963
752 Lockheed Martin........................................... 44,743
400 McDonnell Douglas......................................... 28,900
200 Northrop Grumman.......................................... 10,475
200 Ogden..................................................... 4,400
700 Rockwell International.................................... 31,938
300 Textron................................................... 18,263
200 TRW....................................................... 15,775
400 United Technologies....................................... 30,350
-----------
627,781
-----------
AIRLINES--0.19%
200 Delta Air Lines........................................... 13,025
500 Southwest Airlines........................................ 11,062
200 USAir Group*.............................................. 1,775
-----------
25,862
-----------
APPAREL--0.18%
200 Fruit of the Loom*........................................ 5,300
300 Liz Claiborne............................................. 5,325
100 Russell................................................... 2,900
200 VF........................................................ 10,650
-----------
24,175
-----------
AUTOMOTIVE--2.74%
100 Briggs & Stratton......................................... 3,550
1,200 Chrysler.................................................. 52,350
300 Cooper Tire & Rubber...................................... 7,275
300 Dana...................................................... 8,475
300 Eaton..................................................... 18,338
200 Echlin.................................................... 7,200
200 Fleetwood Enterprises..................................... 4,150
3,300 Ford Motor................................................ 96,524
2,500 General Motors............................................ 120,000
400 Genuine Parts............................................. 15,700
500 Goodyear Tire & Rubber.................................... 21,125
200 Navistar International*................................... 3,100
100 Paccar.................................................... 4,775
100 Snap-On................................................... 3,550
</TABLE>
<TABLE>
<CAPTION>
SHARES VALUE
------ -----------
<C> <S> <C>
AUTOMOTIVE--(CONTINUED)
100 Trinova................................................... $ 3,400
100 Varity*................................................... 4,313
-----------
373,825
-----------
BANKING--5.82%
400 Ahmanson (H.F.)........................................... 9,100
1,300 Banc One.................................................. 45,175
300 Bank of Boston............................................ 10,950
600 Bank of New York.......................................... 24,450
1,200 BankAmerica............................................... 62,700
300 Bankers Trust (NY) Corp................................... 18,825
300 Barnett Banks............................................. 14,888
400 Boatmen's Bancshares...................................... 13,000
600 Chase Manhattan........................................... 27,750
800 Chemical Banking.......................................... 36,900
1,300 Citicorp.................................................. 69,549
500 CoreStates Financial...................................... 16,625
300 First Chicago............................................. 17,213
300 First Fidelity Bancorporation............................. 15,938
300 First Interstate Bancorp.................................. 25,200
600 First Union Corp.......................................... 29,400
500 Fleet Financial Group..................................... 17,438
200 Golden West Financial..................................... 9,825
400 Great Western Financial................................... 8,750
800 KeyCorp................................................... 24,500
450 Mellon Bank............................................... 19,238
600 Morgan (J.P.)............................................. 42,525
500 National City............................................. 15,188
900 NationsBank............................................... 50,962
500 NBD Bancorp............................................... 16,438
1,000 Norwest................................................... 28,375
800 PNC Bank.................................................. 21,600
400 Shawmut National.......................................... 11,600
400 SunTrust Banks............................................ 23,200
300 U.S. Bancorp (OR)......................................... 7,350
600 Wachovia.................................................. 22,725
200 Wells Fargo............................................... 36,800
-----------
794,177
-----------
CHEMICALS--3.86%
400 Air Products & Chemicals.................................. 21,250
900 Dow Chemical.............................................. 66,037
1,800 du Pont (E.I.) de Nemours................................. 122,174
300 Eastman Chemical.......................................... 18,000
</TABLE>
<PAGE>
ST. JAMES PORTFOLIOS
SCHEDULE OF INVESTMENTS
MAY 31, 1995
EQUITY MARKET PORTFOLIO (CONTINUED)
See Notes to Financial Statements.
<TABLE>
<CAPTION>
SHARES VALUE
------ -----------
<C> <S> <C>
COMMON STOCK (CONTINUED)
CHEMICALS--(CONTINUED)
100 First Mississippi......................................... $ 2,313
100 FMC*...................................................... 6,438
300 Grace (W.R.).............................................. 19,275
200 Great Lakes Chemical...................................... 12,200
400 Hercules.................................................. 21,000
400 International Flavors & Fragrances........................ 19,700
1,400 Minnesota Mining & Manufacturing.......................... 83,824
400 Monsanto.................................................. 33,300
500 Morton International...................................... 15,875
200 Nalco Chemical............................................ 7,550
100 Owens Corning Fiberglass*................................. 3,625
700 PPG Industries............................................ 29,138
400 Praxair................................................... 9,950
200 Rohm & Haas............................................... 11,775
200 Sigma Aldrich............................................. 8,800
500 Union Carbide............................................. 14,625
-----------
526,849
-----------
COMMUNICATION--8.95%
1,600 AirTouch Communications*.................................. 43,600
600 ALLTEL.................................................... 14,775
1,800 Ameritech Corp............................................ 79,874
150 Andrew*................................................... 7,238
5,100 AT & T.................................................... 258,824
1,400 Bell Atlantic............................................. 78,050
1,600 BellSouth................................................. 98,199
48 Cox Communications
(Class A)*............................................... 780
400 DSC Communications*....................................... 14,750
3,100 GTE....................................................... 103,462
2,200 MCI Communications........................................ 44,275
1,900 Motorola.................................................. 113,762
800 Northern Telecom Ltd...................................... 30,700
1,400 Nynex Corp................................................ 58,450
1,400 Pacific Telesis Group..................................... 37,450
2,000 SBC Communications........................................ 90,000
200 Scientific Atlanta........................................ 3,725
1,100 Sprint.................................................... 36,850
2,100 Tele-Communications
(Class A)*............................................... 44,100
1,500 US West................................................... 61,874
-----------
1,220,738
-----------
</TABLE>
<TABLE>
<CAPTION>
SHARES VALUE
------ -----------
<C> <S> <C>
COMPUTER EQUIPMENT--7.93%
400 Amdahl*................................................... $ 5,200
400 Apple Computer............................................ 16,600
300 Applied Materials*........................................ 23,025
200 Autodesk.................................................. 7,400
500 Automatic Data Processing................................. 31,125
200 Cabletron Systems*........................................ 10,700
100 Ceridian*................................................. 3,225
900 COMPAQ Computer*.......................................... 35,213
500 Computer Associates International......................... 32,750
200 Computer Sciences*........................................ 10,600
100 Cray Research*............................................ 2,288
100 Data General*............................................. 800
500 Digital Equipment*........................................ 22,313
100 Harris Corp............................................... 5,313
1,700 Hewlett-Packard........................................... 112,412
400 Honeywell................................................. 15,850
1,400 Intel..................................................... 156,974
100 Intergraph*............................................... 1,338
1,900 International Business Machines........................... 177,174
200 Lotus Development*........................................ 6,050
700 Micron Technology......................................... 31,238
1,900 Microsoft*(a)............................................. 160,787
1,200 Novell*................................................... 23,100
1,400 Oracle Systems*........................................... 48,475
500 Pitney Bowes.............................................. 18,500
500 Silicon Graphics*......................................... 19,438
300 Sun Microsystems*......................................... 13,463
400 Tandem Computers*......................................... 5,300
200 Tandy..................................................... 9,350
300 Texas Instruments......................................... 34,688
600 Unisys*................................................... 6,375
300 Xerox..................................................... 34,013
-----------
1,081,077
-----------
CONGLOMERATES--0.25%
300 ITT....................................................... 33,563
-----------
CONSTRUCTION--0.87%
500 Baker Hughes.............................................. 11,250
700 Caterpillar Inc. ......................................... 42,175
200 Dover..................................................... 13,125
300 Fluor..................................................... 14,850
100 Foster Wheeler............................................ 3,288
400 Halliburton............................................... 15,600
</TABLE>
<PAGE>
ST. JAMES PORTFOLIOS
SCHEDULE OF INVESTMENTS
MAY 31, 1995
EQUITY MARKET PORTFOLIO (CONTINUED)
See Notes to Financial Statements.
<TABLE>
<CAPTION>
SHARES VALUE
------ -----------
<C> <S> <C>
COMMON STOCK (CONTINUED)
CONSTRUCTION--(CONTINUED)
200 Harnischfeger Industries.................................. $ 6,950
100 Morrison Knudsen.......................................... 550
300 Rowan*.................................................... 2,250
200 Western Atlas*............................................ 9,025
-----------
119,063
-----------
CONSUMER GOODS--3.28%
500 Colgate-Palmolive......................................... 38,500
800 ConAgra................................................... 26,700
700 Gillette.................................................. 59,062
300 Hasbro.................................................... 10,575
100 Jostens................................................... 2,013
700 Kellogg................................................... 46,988
750 Mattel.................................................... 18,750
500 Newell.................................................... 12,438
200 Premark International..................................... 9,975
2,200 Procter & Gamble.......................................... 158,124
500 Rubbermaid................................................ 15,938
1,600 Sara Lee.................................................. 44,600
100 Stanley Works............................................. 4,000
-----------
447,663
-----------
DRUGS--5.89%
2,600 Abbott Laboratories....................................... 103,999
200 Allergan.................................................. 5,325
300 ALZA Corp (Class A)*...................................... 6,263
1,000 American Home Products.................................... 73,624
400 Amgen*.................................................... 28,950
1,700 Bristol-Myers Squibb...................................... 112,837
1,000 Lilly (Eli) & Co. ........................................ 74,625
4,200 Merck..................................................... 197,924
1,100 Pfizer.................................................... 96,937
600 Schering-Plough........................................... 47,250
600 Upjohn.................................................... 21,825
400 Warner Lambert............................................ 33,150
-----------
802,709
-----------
ELECTRICAL EQUIPMENT--1.83%
400 Advanced Micro Devices.................................... 13,150
700 AMP....................................................... 29,837
300 Black & Decker............................................ 9,900
900 Cisco Systems*............................................ 39,263
700 Emerson Electric.......................................... 48,124
200 Grainger (W.W.)........................................... 11,975
100 Johnson Controls.......................................... 5,725
</TABLE>
<TABLE>
<CAPTION>
SHARES VALUE
------ -----------
<C> <S> <C>
ELECTRICAL EQUIPMENT--(CONTINUED)
300 Loral..................................................... $ 14,363
100 M/A-Com................................................... 1,188
400 National Semiconductor*................................... 10,000
200 National Service Industries............................... 5,775
400 Raytheon.................................................. 31,000
200 Teledyne.................................................. 4,875
100 Thomas & Betts............................................ 6,738
1,200 Westinghouse Electric..................................... 17,400
-----------
249,313
-----------
ENERGY--0.78%
600 Dresser Industries........................................ 13,725
800 Enron..................................................... 29,200
200 ENSERCH................................................... 3,475
100 Helmerich & Payne......................................... 2,988
200 McDermott International................................... 5,250
800 Schlumberger Ltd. ........................................ 52,000
-----------
106,638
-----------
ENGINES & TURBINES--0.09%
300 Brunswick................................................. 5,513
100 Cummins Engine............................................ 4,550
100 Outboard Marine........................................... 2,013
-----------
12,076
-----------
ENTERTAINMENT--1.83%
500 Capital Cities/ABC........................................ 48,250
160 CBS....................................................... 10,720
800 Comcast................................................... 13,900
1,700 Disney (Walt)............................................. 94,562
100 King World Productions*................................... 4,150
200 Loews..................................................... 23,775
1,151 Viacom (Class B)*......................................... 53,664
-----------
249,021
-----------
ENVIRONMENTAL MANAGEMENT--0.54%
600 Browning-Ferris Industries................................ 21,375
900 Laidlaw (Class B)......................................... 8,325
1,600 WMX Technologies.......................................... 43,600
-----------
73,300
-----------
</TABLE>
<PAGE>
ST. JAMES PORTFOLIOS
SCHEDULE OF INVESTMENTS
MAY 31, 1995
EQUITY MARKET PORTFOLIO (CONTINUED)
See Notes to Financial Statements.
<TABLE>
<CAPTION>
SHARES VALUE
------ -----------
<C> <S> <C>
COMMON STOCK (CONTINUED)
FINANCIAL SERVICES--2.39%
1,600 American Express.......................................... $ 57,000
200 Beneficial................................................ 8,900
600 Dean Witter Discover...................................... 28,575
600 Federal Home Loan Mortgage Corporation.................... 40,875
900 Federal National Mortgage Association..................... 83,699
400 First Data................................................ 23,100
300 H&R Block................................................. 10,838
300 Household International................................... 14,813
500 MBNA...................................................... 16,875
600 Merrill Lynch............................................. 28,200
300 Salomon................................................... 12,300
-----------
325,175
-----------
FOOD & BEVERAGES--7.33%
100 Adolph Coors (Class B).................................... 1,713
800 Anheuser Busch............................................ 47,299
1,687 Archer Daniels Midland.................................... 31,210
200 Brown Forman (Class B).................................... 6,650
800 Campbell Soup............................................. 39,300
4,200 Coca-Cola Bottling Consolidated........................... 259,874
500 CPC International......................................... 30,375
500 General Mills............................................. 25,937
800 H J Heinz................................................. 36,200
300 Hershey Foods............................................. 15,488
2,600 PepsiCo................................................... 127,399
2,800 Philip Morris............................................. 204,049
400 Quaker Oats............................................... 13,950
300 Ralston Purina Group...................................... 15,075
1,200 Seagram................................................... 36,000
500 Unilever (N.V.) ADR....................................... 63,624
700 UST Inc. ................................................. 20,913
300 Whitman................................................... 5,438
400 Wrigley (WM) Jr. ......................................... 18,100
-----------
998,594
-----------
FOREST PRODUCTS--1.70%
200 Bemis..................................................... 5,700
200 Boise Cascade............................................. 6,600
300 Champion International.................................... 13,913
100 Federal Paper Board....................................... 3,250
300 Georgia Pacific........................................... 23,325
400 International Paper....................................... 31,449
</TABLE>
<TABLE>
<CAPTION>
SHARES VALUE
------ -----------
<C> <S> <C>
FOREST PRODUCTS--(CONTINUED)
300 James River............................................... $ 8,100
500 Kimberly-Clark............................................ 30,000
400 Louisiana Pacific......................................... 8,900
200 Mead...................................................... 10,775
100 Potlatch.................................................. 4,288
500 Scott Paper............................................... 21,687
300 Stone Container*.......................................... 5,250
200 Temple Inland............................................. 8,650
200 Union Camp................................................ 10,375
200 Westvaco.................................................. 8,550
700 Weyerhaeuser.............................................. 30,713
-----------
231,525
-----------
GENERAL BUILDING--0.27%
100 Armstrong World Industries................................ 5,163
100 Centex.................................................... 2,875
100 Kaufman & Broad Home...................................... 1,413
500 Masco..................................................... 14,438
100 Pulte..................................................... 2,738
200 Tyco Laboratories......................................... 10,825
-----------
37,452
-----------
GROCERY STORES--0.57%
800 Albertson's............................................... 22,400
500 American Stores........................................... 13,063
300 Bruno's................................................... 3,450
100 Fleming................................................... 2,588
200 Giant Food (Class A)...................................... 5,750
100 Great Atlantic & Pacific Tea.............................. 2,488
400 Kroger*................................................... 10,400
200 SuperValu................................................. 5,675
200 Winn Dixie Stores......................................... 11,475
-----------
77,289
-----------
HEALTH CARE--2.71%
200 Bard (C.R.)............................................... 5,900
200 Bausch & Lomb............................................. 8,125
900 Baxter International...................................... 31,387
200 Becton Dickinson.......................................... 11,500
300 Beverly Enterprises*...................................... 3,413
400 Biomet*................................................... 5,850
1,400 Columbia/HCA Healthcare................................... 57,224
100 Community Psychiatric Centers............................. 1,238
2,100 Johnson & Johnson......................................... 139,124
200 Mallinckrodt Group........................................ 7,275
</TABLE>
<PAGE>
ST. JAMES PORTFOLIOS
SCHEDULE OF INVESTMENTS
MAY 31, 1995
EQUITY MARKET PORTFOLIO (CONTINUED)
See Notes to Financial Statements.
<TABLE>
<CAPTION>
SHARES VALUE
------ -----------
<C> <S> <C>
COMMON STOCK (CONTINUED)
HEALTH CARE--(CONTINUED)
200 Manor Care................................................ $ 5,850
400 Medtronic................................................. 30,100
700 National Medical Enterprises*............................. 11,638
200 St. Jude Medical*......................................... 9,050
200 U.S. Surgical Corp........................................ 4,125
600 United Healthcare......................................... 22,350
500 U.S. Health Care.......................................... 15,500
-----------
369,649
-----------
HOUSEHOLD APPLIANCES &
FURNITURE--0.17%
400 Maytag.................................................... 6,500
100 Springs Industries (Class A).............................. 3,938
200 Whirlpool................................................. 11,425
100 Zenith Electronics*....................................... 775
-----------
22,638
-----------
INDUSTRIAL MACHINERY--0.73%
100 Cincinnati Milacron....................................... 2,700
400 Cooper Industries......................................... 14,800
300 Deere (John) & Co......................................... 25,950
100 Giddings & Lewis.......................................... 1,725
400 Illinois Tool Works....................................... 19,900
300 Ingersoll Rand............................................ 11,175
400 Pall...................................................... 8,800
200 Parker-Hannifin........................................... 11,425
100 Raychem................................................... 3,638
-----------
100,113
-----------
INSURANCE--2.95%
400 Aetna Life & Casualty..................................... 23,850
100 Alexander & Alexander..................................... 2,538
700 American General.......................................... 24,150
1,000 American International Group.............................. 113,749
300 Chubb..................................................... 24,713
200 CIGNA..................................................... 14,950
300 General RE................................................ 40,612
200 Jefferson Pilot........................................... 10,550
300 Lincoln National.......................................... 13,575
200 Marsh & McLennan.......................................... 15,925
300 Providian................................................. 10,913
200 Safeco.................................................... 11,750
300 St. Paul.................................................. 15,263
200 Torchmark................................................. 7,975
200 Transamerica.............................................. 11,950
</TABLE>
<TABLE>
<CAPTION>
SHARES VALUE
------ -----------
<C> <S> <C>
INSURANCE--(CONTINUED)
1,000 Travelers Group........................................... $ 42,249
300 U S F & G................................................. 5,175
200 UNUM...................................................... 8,550
100 USLIFE.................................................... 4,025
-----------
402,462
-----------
LODGING--0.31%
200 Bally Entertainment*...................................... 2,075
200 Hilton Hotels............................................. 13,400
400 Marriott International.................................... 13,550
300 Promus*................................................... 12,563
-----------
41,588
-----------
METALS & MINING--1.35%
700 Alcan Aluminum Ltd. ...................................... 20,737
600 Aluminum Company of America............................... 27,900
100 ASARCO.................................................... 2,888
1,100 Barrick Gold.............................................. 27,775
300 Cyprus Amax Minerals...................................... 7,950
400 Echo Bay Mines Ltd. ...................................... 3,575
300 Engelhard................................................. 12,488
400 Homestake Mining.......................................... 6,750
400 Inco Ltd. ................................................ 10,000
300 Newmont Mining............................................ 12,525
200 Phelps Dodge.............................................. 11,025
800 Placer Dome............................................... 20,200
200 Reynolds Metals........................................... 9,875
440 Santa Fe Pacific Gold..................................... 5,500
100 Timken.................................................... 4,213
-----------
183,401
-----------
NATURAL GAS--0.73%
200 Columbia Gas System*...................................... 6,000
300 Consolidated Natural Gas.................................. 11,963
200 NICOR..................................................... 5,325
400 NorAm Energy.............................................. 2,650
100 ONEOK..................................................... 1,900
300 Pacific Enterprises....................................... 7,575
500 Panhandle Eastern......................................... 12,563
100 Peoples Energy............................................ 2,675
300 Sonat..................................................... 9,863
600 Tenneco................................................... 28,799
300 Williams Companies........................................ 10,200
-----------
99,513
-----------
</TABLE>
<PAGE>
ST. JAMES PORTFOLIOS
SCHEDULE OF INVESTMENTS
MAY 31, 1995
EQUITY MARKET PORTFOLIO (CONTINUED)
See Notes to Financial Statements.
<TABLE>
<CAPTION>
SHARES VALUE
------ -----------
<C> <S> <C>
COMMON STOCK (CONTINUED)
OIL & GAS--8.35%
300 Amerada Hess.............................................. $ 15,225
1,600 Amoco..................................................... 109,399
200 Ashland................................................... 7,425
500 Atlantic Richfield........................................ 58,062
400 Burlington Resources...................................... 16,600
2,100 Chevron................................................... 103,162
300 Coastal................................................... 9,413
4,100 Exxon..................................................... 292,637
200 Kerr--McGee............................................... 11,150
100 Louisiana Land & Exploration.............................. 3,875
1,300 Mobil..................................................... 130,487
1,000 Occidental Petroleum...................................... 23,000
300 Oryx Energy*.............................................. 4,313
200 Pennzoil.................................................. 9,875
900 Phillips Petroleum........................................ 32,624
1,700 Royal Dutch Petroleum..................................... 215,474
300 Santa Fe Energy Resources*................................ 2,925
300 Sun....................................................... 9,450
600 Texaco.................................................... 41,099
800 Unocal.................................................... 23,700
900 USX-Marathon Group........................................ 17,888
-----------
1,137,783
-----------
PRINTING & PUBLISHING--1.71%
200 American Greetings (Class A).............................. 5,600
200 Avery Dennison............................................ 8,250
300 Deluxe.................................................... 9,563
500 Donnelley (R.R.) & Sons................................... 18,250
300 Dow Jones................................................. 10,950
600 Dun & Bradstreet.......................................... 31,800
500 Gannett................................................... 26,750
200 Harcourt General.......................................... 8,425
100 Harland (J. H.)........................................... 2,363
200 Knight-Ridder............................................. 11,050
200 McGraw-Hill Companies..................................... 14,800
100 Meredith.................................................. 2,625
300 Moore Corp Ltd............................................ 6,563
300 New York Times (Class A).................................. 6,788
1,200 Time Warner............................................... 47,549
400 Times Mirror Co (Class A)................................. 9,300
200 Tribune................................................... 11,925
-----------
232,551
-----------
RAILROADS--1.00%
300 Burlington Northern....................................... 18,338
</TABLE>
<TABLE>
<CAPTION>
SHARES VALUE
------ -----------
<C> <S> <C>
RAILROADS--(CONTINUED)
300 Conrail................................................... $ 16,200
300 CSX....................................................... 22,875
400 Norfolk Southern.......................................... 27,400
500 Santa Fe Southern Pacific................................. 12,250
700 Union Pacific............................................. 38,762
-----------
135,825
-----------
RESTAURANTS--0.91%
1,000 Darden Restaurants........................................ 11,000
100 Luby's Cafeterias......................................... 2,038
2,300 McDonald's................................................ 87,112
200 Ryan's Family Steak House*................................ 1,375
100 Shoney's*................................................. 1,088
600 Sysco..................................................... 16,275
300 Wendy's International..................................... 5,138
-----------
124,026
-----------
RETAIL--4.58%
300 Charming Shoppes.......................................... 1,294
300 Circuit City Stores....................................... 8,250
400 CUC International......................................... 14,700
200 Dayton-Hudson............................................. 14,175
400 Dillard Dept Stores....................................... 11,500
500 Gap Inc................................................... 17,188
100 Handleman................................................. 1,163
1,500 Home Depot................................................ 62,437
1,500 Kmart..................................................... 19,125
100 Long's Drugstores......................................... 3,513
500 Lowes..................................................... 13,625
800 May Dept Stores........................................... 31,400
300 Melville.................................................. 11,925
100 Mercantile Stores......................................... 4,688
300 Nordstrom................................................. 12,375
800 Penney (J.C.)............................................. 37,700
600 Price/Costco*............................................. 8,400
300 Rite Aid.................................................. 7,125
1,300 Sears Roebuck............................................. 73,287
1,200 The Limited............................................... 26,700
200 The Pep Boys (Manny,
Moe & Jack).............................................. 5,575
200 TJX....................................................... 2,675
900 Toys 'R Us*............................................... 22,725
7,500 Wal-Mart Stores........................................... 187,499
400 Walgreen.................................................. 19,250
400 Woolworth (F.W.).......................................... 6,150
-----------
624,444
-----------
</TABLE>
<PAGE>
ST. JAMES PORTFOLIOS
SCHEDULE OF INVESTMENTS
MAY 31, 1995
EQUITY MARKET PORTFOLIO (CONTINUED)
See Notes to Financial Statements.
<TABLE>
<CAPTION>
SHARES VALUE
------ -----------
<C> <S> <C>
COMMON STOCK (CONTINUED)
SCIENTIFIC EQUIPMENT--0.29%
500 Boston Scientific*........................................ $ 14,375
200 E G & G................................................... 3,625
200 General Signal............................................ 7,400
100 Millipore................................................. 6,563
100 Perkin Elmer.............................................. 3,475
100 Tektronix................................................. 4,600
-----------
40,038
-----------
SPECIALIZED SERVICES--0.58%
200 Alco Standard............................................. 14,325
300 Crown Cork & Seal*........................................ 14,100
200 Ecolab.................................................... 5,075
200 Federal Express*.......................................... 11,975
300 Interpublic Group......................................... 11,063
300 Ryder System.............................................. 7,613
200 Safety Kleen.............................................. 3,400
300 Service Corp International................................ 8,588
100 Shared Medical Systems.................................... 3,313
-----------
79,452
-----------
SPECIALTY CONSUMER
PRODUCTS--1.48%
100 Alberto Culver (Class B).................................. 3,225
600 American Brands........................................... 24,224
200 Avon Products............................................. 13,475
100 Brown Group............................................... 2,188
200 Clorox.................................................... 11,975
700 Corning................................................... 22,400
1,100 Eastman Kodak............................................. 66,412
200 Nike (Class B)............................................ 15,775
300 Pioneer Hi-Bred International............................. 11,700
200 Polaroid.................................................. 7,375
300 Reebok International Ltd.................................. 10,050
300 Sherwin Williams.......................................... 11,025
200 Stride Rite............................................... 2,250
-----------
202,074
-----------
STEEL--0.30%
300 Armco..................................................... 1,913
400 Bethlehem Steel*.......................................... 5,900
100 Crane Company............................................. 3,425
100 Inland Steel Industries*.................................. 2,813
300 Nucor..................................................... 14,324
200 USX-US Steel Group........................................ 6,400
300 Worthington Industries.................................... 6,225
-----------
41,000
-----------
</TABLE>
<TABLE>
<CAPTION>
SHARES VALUE
------ -----------
<C> <S> <C>
TRANSPORTATION SERVICES--0.24%
200 AMR*...................................................... $ 13,650
100 Consolidated Freightways*................................. 2,375
300 Dial Corporation.......................................... 7,350
100 Pittston Services Group................................... 2,413
100 Roadway Services.......................................... 4,650
100 Yellow Corp. ............................................. 1,888
-----------
32,326
-----------
UTILITIES--3.65%
600 American Electric Power................................... 20,550
500 Baltimore Gas and Electric................................ 13,000
500 Carolina Power & Light.................................... 14,938
600 Central & South West...................................... 15,450
509 CINergy................................................... 13,557
800 Consolidated Edison Company of NY......................... 23,900
500 Detroit Edison............................................ 15,063
600 Dominion Resources........................................ 22,275
700 Duke Power................................................ 29,225
100 Eastern Enterprises....................................... 3,000
700 Entergy................................................... 17,325
600 FPL Group................................................. 23,550
400 General Public Utilities.................................. 12,000
400 Houston Industries........................................ 17,250
500 Niagara Mohawk Power...................................... 7,375
200 Northern States Power..................................... 9,475
500 Ohio Edison............................................... 10,938
900 PacifiCorp................................................ 17,775
1,400 Pacific Gas & Electric.................................... 40,600
700 PECO Energy............................................... 19,688
800 Public Service Enterprise Group........................... 23,800
1,500 SCECorp................................................... 26,063
2,100 Southern.................................................. 46,462
700 Texas Utilities........................................... 25,287
700 Unicom.................................................... 19,075
300 Union Electric............................................ 11,363
-----------
498,984
-----------
TOTAL COMMON STOCK
(Cost $10,972,276)............................................... 12,805,732
-----------
</TABLE>
<PAGE>
ST. JAMES PORTFOLIOS
SCHEDULE OF INVESTMENTS
MAY 31, 1995
EQUITY MARKET PORTFOLIO (CONTINUED)
See Notes to Financial Statements.
<TABLE>
<CAPTION>
SHARES/
PRINCIPAL
AMOUNT VALUE
--------- ----------
<C> <S> <C>
PREFERRED STOCK--0.00%
3 Teledyne Series E, $1.20
(Cost $0)............................................. $ 42
----------
SHORT-TERM OBLIGATION--1.70%
TIME DEPOSIT
$231,566 National Westminster Bank (Nassau), 5.46%, due 6/01/95
(Cost $231,566)....................................... 231,566
----------
</TABLE>
<TABLE>
<CAPTION>
VALUE
-----------
<C> <S> <C>
TOTAL
INVESTMENTS--
95.64%
(cost
$11,203,842).. $13,037,340
OTHER ASSETS
AND
LIABILITIES
(NET)--4.36%.. 595,043
-----------
TOTAL NET
ASSETS--
100.00%....... $13,632,383
===========
</TABLE>
---------------------
* Non-income producing security
(a) Security has been pledged to cover collateral requirements for open
futures contracts
ADRAmerican Depository Receipt
SCHEDULE OF OPEN FINANCIAL FUTURES CONTRACTS
MAY 31, 1995
<TABLE>
<CAPTION>
NUMBER FACE UNREALIZED
OF AMOUNT APPRECIATION
CONTRACTS AT VALUE EXPIRATION AT 5/31/95
--------- -------- ---------- ------------
<S> <C> <C> <C> <C>
LONG:
Standard & Poor's 500................ 1 $268,950 9/15/95 $4,493
======
</TABLE>
<PAGE>
ST. JAMES PORTFOLIOS
SCHEDULE OF INVESTMENTS
MAY 31, 1995
BOND MARKET PORTFOLIO
See Notes to Financial Statements.
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT VALUE
--------- -----------
<C> <S> <C>
CORPORATE OBLIGATIONS--12.91%
ASSET-BACKED SECURITIES--1.85%
$ 300,000 Premier Auto Trust, 6.35%, due 5/02/00................ $ 300,654
-----------
BANKING--0.65%
110,000 Bank of Boston, 6.625%, due 12/01/05.................. 105,238
-----------
COMMUNICATION--3.12%
500,000 MCI Communications Sr. Nts., 7.625%, due 11/07/96..... 508,335
-----------
CONSUMER SERVICES--3.16%
500,000 Hertz, 9.125%, due 8/01/96............................ 514,760
-----------
FINANCIAL SERVICES--3.18%
500,000 General Electric Capital, 8.75%, due 11/26/96......... 517,490
-----------
RETAIL--0.95%
150,000 Penney (J.C.), 7.375%, due 6/15/04.................... 155,822
-----------
TOTAL CORPORATE OBLIGATIONS
(Cost $2,077,387).................................... 2,102,299
-----------
U.S. GOVERNMENT MORTGAGE-BACKED
OBLIGATIONS--28.03%
Federal Home Loan Mortgage Corporation
379,254 9.00%, due 4/01/22.................................... 395,505
359,360 7.00%, due 5/01/24.................................... 353,826
354,429 7.00%, due 6/01/24.................................... 348,971
Federal National Mortgage
Association
353,093 7.00%, due 6/01/09.................................... 355,412
546,337 8.50%, due 8/01/23.................................... 565,000
461,342 7.00%, due 5/01/24.................................... 453,952
419,458 7.00%, due 6/01/24.................................... 412,738
Government National Mortgage Association
286,756 9.50%, due 1/15/19.................................... 303,884
267,859 9.50%, due 10/15/20................................... 282,853
1,084,327 7.50%, due 6/15/24.................................... 1,091,604
-----------
</TABLE>
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT VALUE
--------- -----------
<C> <S> <C>
TOTAL U.S. GOVERNMENT MORTGAGE-BACKED OBLIGATIONS
(Cost $4,427,700)................................... $ 4,563,745
-----------
U.S. GOVERNMENT AGENCY
OBLIGATIONS--1.24%
Federal Home Loan Mortgage Association
$ 200,000 7.23%, due 12/17/02
(Cost $189,153)..................................... 201,192
-----------
UNITED STATES TREASURY
OBLIGATIONS--52.33%
United States Treasury Notes
1,270,000 6.500%, due 5/15/97.................................. 1,284,681
825,000 6.500%, due 8/15/97.................................. 835,312
500,000 7.125%, due 10/15/98................................. 517,890
500,000 7.000%, due 4/15/99.................................. 516,955
650,000 8.875%, due 5/15/00.................................. 728,306
1,230,000 6.250%, due 2/15/03.................................. 1,228,266
500,000 7.250%, due 5/15/04.................................. 531,015
1,000,000 7.500%, due 2/15/05.................................. 1,084,060
United States Treasury Bonds
245,000 9.375%, due 2/15/06.................................. 301,695
1,000,000 7.250%, due 5/15/16.................................. 1,052,030
400,000 7.500%, due 11/15/24................................. 439,936
-----------
TOTAL UNITED STATES TREASURY OBLIGATIONS
(Cost $8,081,590)................................... 8,520,146
-----------
SHORT-TERM OBLIGATION--2.56%
TIME DEPOSIT
416,748 National Westminster Bank (Nassau), 5.46%, due
6/01/95
(Cost $416,748) .................................... 416,748
-----------
TOTAL INVESTMENTS--97.07%
(Cost $15,192,578).............................................. 15,804,130
OTHER ASSETS AND LIABILITIES
(NET)--2.93%.................................................... 476,725
-----------
TOTAL NET ASSETS--100.00%........................................ $16,280,855
===========
</TABLE>
<PAGE>
ST. JAMES PORTFOLIOS
SCHEDULE OF INVESTMENTS
MAY 31, 1995
SMALL CAP PORTFOLIO
See Notes to Financial Statements.
<TABLE>
<CAPTION>
SHARES VALUE
------ -----------
<C> <S> <C>
COMMON STOCK--96.70%
ADVERTISING--0.20%
2,800 Ackerley Communications................................... $ 27,650
-----------
AGRICULTURE--0.69%
2,200 First Mississippi......................................... 50,875
1,100 Vigoro.................................................... 42,900
-----------
93,775
-----------
AMUSEMENT & RECREATION
SERVICES--3.18%
2,700 Acclaim Entertainment*.................................... 45,900
2,400 Carmike Cinemas (Class A)*................................ 57,300
2,000 Grand Casinos*............................................ 63,750
1,500 Harman International Industries........................... 54,188
2,850 Players International*.................................... 59,138
9,900 Roadmaster Industries*.................................... 32,175
4,500 Showboat.................................................. 75,375
2,500 WMS Industries............................................ 46,250
-----------
434,076
-----------
APPAREL--0.35%
2,800 Kellwood.................................................. 47,600
-----------
BANKING--9.43%
4,400 Albank Financial.......................................... 112,200
1,200 American Savings of FL- F.S.B.*........................... 24,450
3,300 Centerbank................................................ 47,025
2,000 Centura Banks............................................. 51,750
4,400 Charter One Financial..................................... 110,000
1,400 Collective Bancorp........................................ 31,150
3,000 Commercial Federal*....................................... 87,750
1,500 Firstfed Michigan......................................... 43,500
10,800 Glendale Federal Bank FSB*................................ 148,500
2,600 Hawkeye Bancorporation.................................... 56,875
3,600 JSB Financial............................................. 111,150
1,401 New York Bancorp.......................................... 28,010
2,500 ONBANcorp................................................. 66,563
2,600 Peoples Heritage Financial Group.......................... 37,375
2,800 Premier Bancorp........................................... 47,600
4,500 Republic Bancorp.......................................... 51,188
4,300 Roosevelt Financial Group................................. 73,100
1,900 TCF Financial............................................. 88,350
2,700 Union Planters............................................ 71,550
-----------
1,288,086
-----------
</TABLE>
<TABLE>
<CAPTION>
SHARES VALUE
------ -----------
<C> <S> <C>
BUILDING & CONSTRUCTION--1.60%
2,600 Champion Enterprises........................................ $ 43,550
1,700 Oakwood Homes............................................... 42,713
3,700 Payless Cashways*........................................... 26,825
2,500 Pulte....................................................... 68,438
2,400 Toll Brothers*.............................................. 37,500
-----------
219,026
-----------
CHEMICALS--0.58%
2,800 McWhorter Technologies*..................................... 42,700
3,400 Sterling Chemicals.......................................... 36,125
-----------
78,825
-----------
COMPUTERS--6.83%
3,600 AST Research*............................................... 66,600
4,300 Cray Research............................................... 98,363
3,000 Exabyte*.................................................... 40,500
2,100 Gartner Group (Class A)*.................................... 100,275
2,200 Komag*...................................................... 84,700
7,800 Logicon (a)................................................. 299,324
5,500 Merisel*.................................................... 35,063
2,300 Safeguard Scientifics....................................... 78,200
4,200 Tech Data*.................................................. 42,525
3,500 Western Digital*............................................ 61,688
2,400 Xircom*..................................................... 25,500
-----------
932,738
-----------
CONSTRUCTION EQUIPMENT &
MATERIALS--1.32%
1,000 Blount (Class A).............................................. 37,875
1,500 Commercial Intertech........................................ 27,000
1,800 Elcor....................................................... 34,875
1,400 Kennametal.................................................. 45,500
2,200 Pope & Talbot............................................... 35,200
-----------
180,450
-----------
DEFENSE--1.53%
2,200 Alliant Techsystems*........................................ 80,575
900 Sturm Ruger & Company....................................... 26,213
1,700 Thiokol..................................................... 53,338
1,100 Watkins Johnson............................................. 49,225
-----------
209,351
-----------
ELECTRONICS--8.08%
3,200 Allen Group................................................. 74,800
12,600 Audiovox (Class A)*......................................... 66,938
</TABLE>
<PAGE>
ST. JAMES PORTFOLIOS
SCHEDULE OF INVESTMENTS
MAY 31, 1995
SMALL CAP PORTFOLIO (CONTINUED)
See Notes to Financial Statements.
<TABLE>
<CAPTION>
SHARES VALUE
------ -----------
<C> <S> <C>
COMMON STOCK (CONTINUED)
ELECTRONICS--(CONTINUED)
3,400 BMC Industries............................................ $ 73,950
3,100 Core Industries........................................... 32,163
2,700 Dallas Semiconductor...................................... 49,613
1,400 Hutchinson Technology*.................................... 46,200
2,400 Kulicke & Soffa Industries................................ 101,400
3,400 Marshall Industries....................................... 91,800
2,200 Oak Industries............................................ 61,050
1,100 Park Electrochemical...................................... 38,225
2,100 Plantronics*.............................................. 51,975
3,600 SCI Systems*.............................................. 74,250
3,200 Standard Microsystems*.................................... 55,600
3,200 Tech-Sym.................................................. 82,400
3,100 VLSI Technology*.......................................... 80,600
4,200 Windmere.................................................. 36,225
3,300 Wyle Electronics.......................................... 86,625
-----------
1,103,814
-----------
ENVIRONMENTAL--1.00%
8,600 Allwaste*................................................. 48,375
3,700 Dames & Moore............................................. 43,938
3,000 USA Waste Services*....................................... 44,625
-----------
136,938
-----------
FINANCIAL SERVICES--3.88%
3,200 Duff & Phelps Corp........................................ 34,400
4,500 Enhance Financial Services Group.......................... 80,438
2,900 Foothill Group............................................ 71,775
2,100 PEC Israel Economic*...................................... 50,925
3,600 Pioneer Group ............................................ 96,749
1,600 Quick & Reilly Group...................................... 75,200
3,400 Raymond James Financial................................... 62,475
2,800 Summit Bancorporation..................................... 57,750
-----------
529,712
-----------
FOOD & BEVERAGES--2.76%
1,200 American Maize Products
(Class A)................................................ 36,450
5,200 Buffets*.................................................. 72,150
2,300 Coca-Cola Bottling Consolidated........................... 73,025
3,700 Hudson Foods.............................................. 50,875
5,300 Interstate Bakeries....................................... 77,513
2,700 J&J Snack Foods*.......................................... 32,063
</TABLE>
<TABLE>
<CAPTION>
SHARES VALUE
------ -----------
<C> <S> <C>
FOOD & BEVERAGES--(CONTINUED)
1,700 Smithfield Foods*......................................... $ 34,850
-----------
376,926
-----------
HEALTH SERVICES & HOSPITAL
SUPPLIES--9.62%
2,900 Bio-Rad Laboratories
(Class A)*............................................... 87,000
2,600 Charter Medical*.......................................... 44,525
6,200 Continental Medical Systems*.............................. 58,125
4,600 Employee Benefit Plans*................................... 61,525
3,400 Enzo Biochem*............................................. 32,725
2,200 Grancare*................................................. 34,925
2,700 Haemonetics*.............................................. 48,600
2,150 Health Management Systems*................................ 55,900
3,000 Healthcare Services Group................................. 32,625
2,600 Hillhaven*................................................ 74,425
3,500 Horizon Healthcare*....................................... 63,875
7,098 ICN Pharmaceuticals....................................... 120,665
2,600 Nellcor*.................................................. 111,800
4,000 Playtex Products*......................................... 31,000
1,900 Regency Health Services*.................................. 20,900
2,400 Sofamor/Danek Group*...................................... 50,400
1,800 Sunrise Medical*.......................................... 60,300
3,000 Surgical Care Affiliates.................................. 61,500
2,700 Universal Health Services
(Class B)................................................ 74,588
2,750 Vencor*................................................... 86,969
3,600 Vivra*.................................................... 101,700
-----------
1,314,072
-----------
HOME FURNISHING--0.57%
2,100 Ethan Allen Interiors*.................................... 42,000
4,410 Pier 1 Imports............................................ 35,280
-----------
77,280
-----------
INSURANCE--5.97%
1,800 Acceptance Insurance Group................................ 25,200
2,900 American Travellers*...................................... 51,838
2,000 Emphesys Financial Group.................................. 50,500
4,300 Fidelity National Financial............................... 55,900
2,000 FINOVA Group.............................................. 73,749
1,320 Fremont General........................................... 33,330
3,700 Hilb Rogal & Hamilton..................................... 46,250
2,300 Liberty................................................... 59,513
1,700 Life Partners Group....................................... 31,875
</TABLE>
<PAGE>
ST. JAMES PORTFOLIOS
SCHEDULE OF INVESTMENTS
MAY 31, 1995
SMALL CAP PORTFOLIO (CONTINUED)
See Notes to Financial Statements.
<TABLE>
<CAPTION>
SHARES VALUE
------ -----------
<C> <S> <C>
COMMON STOCK (CONTINUED)
INSURANCE--(CONTINUED)
3,600 Life Re................................................... $ 61,200
2,900 Life USA Holdings*........................................ 27,913
1,000 National RE............................................... 30,750
2,100 Orion Capital............................................. 81,374
1,300 Protective Life........................................... 64,513
1,000 United Companies Financial................................ 44,250
1,300 United Wisconsin Services................................. 27,300
1,500 Vesta Insurance Group..................................... 50,063
-----------
815,518
-----------
MACHINERY--2.01%
1,600 AGCO...................................................... 60,600
1,900 BW/IP..................................................... 33,725
4,500 Fedders................................................... 30,375
1,900 Helix Technology.......................................... 71,725
4,000 Scotsman Industries....................................... 78,500
-----------
274,925
-----------
MANUFACTURING--2.19%
5,800 GenCorp................................................... 74,675
1,300 Kaydon.................................................... 35,750
2,300 Outboard Marine........................................... 46,288
1,200 Teleflex.................................................. 49,650
11,200 UNC....................................................... 57,400
1,600 Whittaker................................................. 35,400
-----------
299,163
-----------
METALS & MINING--4.68%
2,400 Amcast Industrial......................................... 47,400
2,900 Astec Industries*......................................... 33,350
1,700 Cleveland-Cliffs.......................................... 66,087
2,500 Commercial Metals......................................... 68,437
3,300 INDRESCO*................................................. 44,963
4,000 J & L Specialty Steel..................................... 75,000
3,900 Material Sciences*........................................ 77,025
1,600 Mueller Industries*....................................... 73,200
600 NACCO Industries (Class A)................................ 36,000
1,100 Seitel.................................................... 31,075
2,900 Smith International....................................... 51,838
3,500 Terra Industries.......................................... 35,000
-----------
639,375
-----------
MOTOR VEHICLES &
EQUIPMENT--2.12%
1,400 Coachmen Industries....................................... 19,250
</TABLE>
<TABLE>
<CAPTION>
SHARES VALUE
------ -----------
<C> <S> <C>
MOTOR VEHICLES &
EQUIPMENT--(CONTINUED)
9,100 Rollins Truck Leasing..................................... $ 95,549
2,600 Standard Motor Products................................... 51,350
1,400 Standard Products......................................... 30,275
3,500 TBC*...................................................... 38,938
2,400 Titan Wheels International................................ 53,700
-----------
289,062
-----------
OFFICE EQUIPMENT &
SERVICES--3.22%
6,500 American Management Systems*.............................. 145,437
3,300 Banctec*.................................................. 49,913
3,200 CACI International*....................................... 32,000
4,400 Inacom Corporation*....................................... 45,100
4,000 Nu-Kote Holding (Class A)*................................ 110,000
6,700 Recognition Equipment..................................... 57,788
-----------
440,238
-----------
OIL & GAS--5.45%
3,800 Camco International....................................... 84,075
3,300 Energen................................................... 68,475
2,100 Hornbeck Offshore Services*............................... 32,550
2,700 McDermott (J. Ray) S. A................................... 70,875
3,800 Newfield Exploration Company*............................. 103,549
5,700 Oceaneering International................................. 55,575
1,000 Phoenix Resource.......................................... 32,125
1,300 Production Operators...................................... 39,325
6,900 Reading & Bates........................................... 60,374
4,000 Sonat Offshore Drilling................................... 114,000
4,800 Tatham Offshore*.......................................... 24,600
5,200 Weatherford International................................. 58,500
-----------
744,023
-----------
REAL ESTATE INVESTMENT
TRUST--2.00%
1,700 National Golf Properties.................................. 36,550
3,000 ROC Communities........................................... 65,624
1,500 Storage USA............................................... 42,563
1,400 Tanger Factory Outlet Centers............................. 35,000
3,500 Walden Residential Properties............................. 64,749
1,350 Wellsford Residential Properties.......................... 29,025
-----------
273,511
-----------
</TABLE>
<PAGE>
ST. JAMES PORTFOLIOS
SCHEDULE OF INVESTMENTS
MAY 31, 1995
SMALL CAP PORTFOLIO (CONTINUED)
See Notes to Financial Statements.
<TABLE>
<CAPTION>
SHARES VALUE
------ -----------
<C> <S> <C>
COMMON STOCK (CONTINUED)
RESTAURANTS--1.55%
3,200 Luby's Cafeteria.......................................... $ 65,200
12,500 Ryan's Family Steak House*................................ 85,937
2,650 Sbarro.................................................... 60,950
-----------
212,087
-----------
RETAIL--5.94%
2,400 Baker (J.)................................................ 31,500
1,500 Blair..................................................... 48,375
2,500 Bradlees.................................................. 12,188
1,500 Caldor*................................................... 28,125
3,000 Carson Pirie Scott & Company*............................. 50,250
3,800 Chic By HIS*.............................................. 40,850
3,900 Claire's Stores........................................... 62,400
3,100 Consolidated Stores*...................................... 58,124
4,600 Dress Barn*............................................... 41,400
2,200 Eckerd*................................................... 71,225
1,400 Friedman's*............................................... 25,025
1,800 Mac Frugals Bargains Closeouts............................ 27,000
2,100 Medicine Shoppe International............................. 70,875
2,200 Paragon Trade Brands*..................................... 29,975
1,300 Penn Traffic*............................................. 42,900
1,700 Rex Stores Corporation*................................... 23,800
2,300 Smith's Food & Drugs (Class B)............................ 44,563
1,900 Super Rite................................................ 29,450
3,300 Venture Stores............................................ 33,000
2,200 Younkers*................................................. 40,425
-----------
811,450
-----------
SPECIALIZED SERVICES--1.88%
2,500 American President........................................ 60,624
2,600 Bowne & Co................................................ 46,150
2,700 Dimon..................................................... 46,575
2,300 Enterra................................................... 43,988
1,400 PHH....................................................... 58,800
-----------
256,137
-----------
SPECIALTY CONSUMER
PRODUCTS--3.36%
2,000 Alberto Culver (Class B).................................. 64,500
2,800 American Safety Razor*.................................... 32,900
600 Duracraft*................................................ 18,750
5,900 Handleman................................................. 68,587
1,300 Helene Curtis............................................. 42,900
3,900 Oneida.................................................... 58,500
</TABLE>
<TABLE>
<CAPTION>
SHARES/
PRINCIPAL
AMOUNT VALUE
--------- -----------
<C> <S> <C>
SPECIALTY CONSUMER
PRODUCTS--(CONTINUED)
12,100 Topps................................................. $ 71,844
4,300 Universal............................................. 99,974
-----------
457,955
-----------
TEXTILES--2.23%
1,500 Chesapeake............................................ 42,750
4,900 Cone Mills*........................................... 61,862
2,500 Guilford Mills........................................ 64,374
2,300 Mohawk Industries*.................................... 34,788
1,300 St. John Knits........................................ 50,375
2,700 West Point Stevens*................................... 48,938
-----------
303,087
-----------
UTILITIES--2.48%
2,200 Central Hudson Gas & Electric......................... 59,674
2,800 Commonwealth Energy Systems........................... 110,600
5,700 Destec Energy*........................................ 68,400
2,400 Eastern Utilities Associates.......................... 55,500
2,800 Southwestern Energy................................... 42,700
-----------
336,874
-----------
TOTAL COMMON STOCK
(Cost $12,253,440).............................................. 13,203,724
-----------
RIGHTS--0.00%
5,700 Statesman Group Rights*
(Cost $0)............................................ 0
-----------
SHORT-TERM OBLIGATION--2.98%
TIME DEPOSIT
$407,297 National Westminster Bank (Nassau), 5.46%, due 6/01/95
(Cost $407,297)...................................... 407,297
-----------
TOTAL INVESTMENTS--99.68%
(Cost $12,660,737).............................................. 13,611,021
OTHER ASSETS AND LIABILITIES
(NET)--0.32%.................................................... 43,674
-----------
TOTAL NET ASSETS--100.00%........................................ $13,654,695
===========
</TABLE>
---------------------
* Non-income producing security
(a) Security has been pledged to cover margin requirements for futures
contracts.
<PAGE>
ST. JAMES PORTFOLIOS
SCHEDULE OF INVESTMENTS
MAY 31, 1995
SMALL CAP PORTFOLIO (CONTINUED)
See Notes to Financial Statements.
SCHEDULE OF OPEN FINANCIAL FUTURES CONTRACTS
MAY 31, 1995
<TABLE>
<CAPTION>
UNREALIZED
NUMBER FACE APPRECIATION
OF AMOUNT AT (DEPRECIATION)
CONTRACTS VALUE EXPIRATION AT 5/31/95
--------- --------- ---------- --------------
<S> <C> <C> <C> <C>
LONG:
Standard & Poor's Mid Cap 400..... 4 $384,200 9/95 ($4,830)
=======
</TABLE>
<PAGE>
ST. JAMES PORTFOLIOS
SCHEDULE OF INVESTMENTS
MAY 31, 1995
BALANCED PORTFOLIO
See Notes to Financial Statements.
<TABLE>
<CAPTION>
SHARES VALUE
------ -----------
<C> <S> <C>
COMMON STOCK--49.06%
AIRLINES--0.53%
5,800 AMR....................................................... $ 395,850
-----------
AEROSPACE--0.49%
6,000 Textron................................................... 365,250
-----------
APPAREL & TEXTILES--0.45%
18,600 Haggar.................................................... 334,800
-----------
AUTOMOTIVE--2.96%
38,000 Arkansas Best............................................. 365,750
14,000 General Motors Corp....................................... 672,000
17,000 Goodyear Tire & Rubber.................................... 718,250
25,000 Hayes Wheels International................................ 450,000
-----------
2,206,000
-----------
BANKING--2.33%
15,000 Bay View Capital.......................................... 386,250
24,000 Key Corp.................................................. 735,000
25,000 U.S. Bancorp (OR)......................................... 612,500
-----------
1,733,750
-----------
CHEMICAL--1.61%
15,000 Arco Chemical............................................. 693,750
20,450 Hanna (M. A.)............................................. 506,138
-----------
1,199,888
-----------
COMMUNICATION--1.85%
18,000 Advanced Micro Devices.................................... 591,750
10,000 AT & T.................................................... 507,500
10,000 Telefonos De Mexico ADR................................... 281,250
-----------
1,380,500
-----------
COMPUTER EQUIPMENT--2.91%
19,000 Apple Computer............................................ 788,500
8,000 Intel..................................................... 897,000
25,000 Standard Register......................................... 481,250
-----------
2,166,750
-----------
CONSUMER GOODS--0.63%
20,000 The Singer Company........................................ 472,500
-----------
DRUGS--2.81%
9,600 Bristol-Myers Squibb...................................... 637,200
10,000 Lilly (Eli) & Co.......................................... 746,250
15,000 Merck & Co................................................ 706,875
-----------
2,090,325
-----------
</TABLE>
<TABLE>
<CAPTION>
SHARES VALUE
------ -----------
<C> <S> <C>
ELECTRONICS--2.69%
11,000 Eaton..................................................... $ 672,375
21,000 Marshall Industries....................................... 567,000
19,000 Philips Electronics ADR................................... 762,375
-----------
2,001,750
-----------
ENERGY--7.48%
10,000 Exxon Corp................................................ 713,750
25,000 Occidental Petroleum...................................... 575,000
22,400 Repsol S.A. ADR........................................... 730,800
5,000 Royal Dutch Petroleum..................................... 633,750
13,500 Tenneco................................................... 648,000
6,000 Texaco.................................................... 411,000
25,800 Ultramar.................................................. 686,925
17,000 Valero Energy............................................. 361,250
40,000 YPF S.A. ADR.............................................. 810,000
-----------
5,570,475
-----------
FINANCIAL SERVICES--3.33%
12,000 Exel Limited.............................................. 561,000
7,000 Federal National Mortgage Association..................... 651,000
40,000 National Auto Credit...................................... 415,000
18,000 Student Loan Marketing Association........................ 855,000
-----------
2,482,000
-----------
FOOD & BEVERAGES--3.88%
13,000 Anheuser Busch............................................ 768,625
12,000 Nestle ADR................................................ 605,393
11,000 Philip Morris............................................. 801,625
25,000 RJR Holdings Group........................................ 712,500
-----------
2,888,143
-----------
FORESTRY--2.26%
14,000 Weyerhaeuser.............................................. 614,250
37,000 Wickes Lumber*............................................ 573,500
10,000 Willamette Industries..................................... 497,500
-----------
1,685,250
-----------
HOME FURNISHINGS--0.40%
35,000 Griffon*.................................................. 297,500
-----------
INSURANCE--0.81%
20,000 Allstate.................................................. 602,500
-----------
</TABLE>
<PAGE>
ST. JAMES PORTFOLIOS
SCHEDULE OF INVESTMENTS
MAY 31, 1995
BALANCED PORTFOLIO (CONTINUED)
See Notes to Financial Statements.
<TABLE>
<CAPTION>
SHARES VALUE
------ -----------
<C> <S> <C>
COMMON STOCK (CONTINUED)
LEASING--2.09%
20,000 Comdisco.................................................. $ 600,000
12,500 GATX...................................................... 529,688
33,000 Winthrop Resources........................................ 429,000
-----------
1,558,688
-----------
MANUFACTURING--3.18%
15,000 Cleveland-Cliffs.......................................... 583,125
23 Consorcio G Grupo Dina
ADR L.................................................... 55
14,800 Cummins Engine............................................ 673,400
32,000 Giddings & Lewis.......................................... 552,000
12,000 Tecumseh Products
(Class A)................................................ 558,000
-----------
2,366,580
-----------
OFFICE EQUIPMENT--1.58%
15,000 Pitney Bowes.............................................. 555,000
5,500 Xerox..................................................... 623,563
-----------
1,178,563
-----------
REALTY--1.37%
30,000 Cali Realty............................................... 532,500
38,000 Commercial Net Lease Realty............................... 489,250
-----------
1,021,750
-----------
RETAIL--2.54%
22,000 Dillard Dept Stores....................................... 632,500
24,000 Meyer (Fred)*............................................. 642,000
13,000 Penney (J.C.)............................................. 612,625
-----------
1,887,125
-----------
SCIENTIFIC EQUIPMENT--0.88%
20,000 Fisher Scientific......................................... 652,500
-----------
TOTAL COMMON STOCK
(Cost $32,736,276)............................................... 36,538,437
-----------
CONVERTIBLE PREFERRED STOCK--2.28%
6,500 Burlington Northern
Series A, $3.125......................................... 433,875
</TABLE>
<TABLE>
<CAPTION>
SHARES/
PRINCIPAL
AMOUNT VALUE
--------- -----------
<C> <S> <C>
CONVERTIBLE PREFERRED STOCK
(CONTINUED)
11,000 Delta Airlines
Series C, $3.50....................................... $ 596,750
7,000 Ford Motor, 8.40%...................................... 668,500
-----------
TOTAL CONVERTIBLE PREFERRED STOCK
(Cost $1,607,786)..................................... 1,699,125
-----------
CORPORATE OBLIGATIONS--25.68%
AUTOMOTIVE--0.53%
$ 350,000 General Motors Corp., 8.95%, due 7/02/09............... 382,015
-----------
BUSINESS EQUIPMENT &
SERVICES--1.66%
1,195,000 Xerox Corp, 9.20%, due 7/15/99......................... 1,234,540
-----------
ELECTRIC UTILITIES--2.38%
600,000 Potomac Edison, 9.25%, due 6/01/19..................... 637,530
1,000,000 Hydro Quebec, 9.75%, due 1/15/18....................... 1,134,778
-----------
1,772,308
-----------
ENERGY--2.55%
500,000 Occidental Petroleum, 9.75%, due 6/15/01............... 568,785
1,250,000 Occidental Petroleum MTN, 8.50%, due 9/15/04........... 1,330,311
-----------
1,899,096
-----------
FINANCIAL SERVICES--6.06%
400,000 Ford Capital, 10.125%, due 11/15/00.................... 462,734
1,100,000 Ford Motor Credit, 5.625%, due 12/15/98................ 1,068,113
45,000 Ford Motor Credit, 5.625%, due 1/15/99................. 43,644
500,000 Ford Motor Credit, 7.50%, due 6/15/04.................. 514,086
600,000 General Motors Acceptance, 7.375%, due 6/22/00......... 614,171
</TABLE>
<PAGE>
ST. JAMES PORTFOLIOS
SCHEDULE OF INVESTMENTS
MAY 31, 1995
BALANCED PORTFOLIO (CONTINUED)
See Notes to Financial Statements.
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT VALUE
--------- -----------
<C> <S> <C>
CORPORATE OBLIGATIONS (CONTINUED)
FINANCIAL SERVICES--(CONTINUED)
$1,275,000 Goldman Sachs, 8.00%, due 3/01/13**.................. $ 1,290,211
500,000 SAFECO, 7.875%, due 4/01/05.......................... 530,246
-----------
4,523,205
-----------
FOOD & BEVERAGES--4.68%
1,850,000 Anheuser Busch, 8.50%, due 3/01/17................... 1,923,734
1,500,000 Kraft, 8.50%, due 2/15/17............................ 1,559,822
-----------
3,483,556
-----------
MANUFACTURING--0.26%
518,000 Consorcio G Grupo Dina, 8.00%, due 8/08/04........... 194,250
-----------
TELEPHONE UTILITIES--5.20%
1,350,000 New York Telephone, 6.25%, due 2/15/04............... 1,294,291
1,045,000 Pacific Telephone & Telegraph, 7.25%, due 2/01/08.... 1,047,376
1,500,000 Southwestern Bell Telephone, 7.75%, due 9/01/09...... 1,536,196
-----------
3,877,863
-----------
TRANSPORTATION--2.36%
1,675,000 Union Pacific, 8.50%, due 1/15/17.................... 1,760,321
-----------
TOTAL CORPORATE OBLIGATIONS
(Cost $18,476,863).................................. 19,127,154
-----------
U.S. GOVERNMENT AGENCY
OBLIGATIONS--6.75%
825,000 Farm Credit Financial Assistance Corporation, 9.20%,
due 9/27/05......................................... 897,443
1,285,000 Federal Home Loan Mortgage Corporation, 8.53%, due
2/02/05............................................. 1,385,749
500,000 Federal National Mortgage Association, 8.675%, due
11/10/04............................................ 542,793
2,000,000 Student Loan Marketing Association, 8.80%, due
11/15/04............................................ 2,024,292
</TABLE>
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT VALUE
--------- -----------
<C> <S> <C>
U.S. GOVERNMENT AGENCY
OBLIGATIONS (CONTINUED)
$ 175,000 Tennessee Valley Authority, 6.875%, due 1/15/02...... $ 176,040
-----------
TOTAL U.S. GOVERNMENT AGENCY OBLIGATIONS
(Cost $4,858,518)................................... 5,026,317
-----------
UNITED STATES TREASURY
OBLIGATIONS--10.13%
United States Treasury Notes
1,150,000 6.750%, due 6/30/99.................................. 1,179,469
1,250,000 7.125%, due 9/30/99.................................. 1,301,170
1,800,000 6.000%, due 10/15/99................................. 1,797,185
1,250,000 6.250%, due 2/15/03.................................. 1,248,437
500,000 7.250%, due 5/15/04.................................. 530,624
United States Treasury Bonds
1,175,000 8.250%, due 5/15/05.................................. 1,271,569
200,000 7.875%, due 11/15/07................................. 217,000
-----------
TOTAL UNITED STATES TREASURY OBLIGATIONS
(Cost $7,217,835)................................... 7,545,454
-----------
SHORT-TERM OBLIGATION--6.54%
REPURCHASE AGREEMENT
4,870,249 Prudential Securities Inc., 5.75%, dated 5/31/95, due
6/01/95, proceeds $4,871,027 (collateralized by
various U.S. Government Agency Mortgage-Backed
Securities with rates from 4.15% to 10.00%, due from
9/15/97 to 1/15/24, valued at $4,967,627)
(Cost $4,870,249)................................... 4,870,249
-----------
TOTAL INVESTMENTS--100.44%
(Cost $69,767,527)............................................. $74,806,736
OTHER ASSETS AND LIABILITIES
(NET)--(0.44%)................................................. (327,657)
-----------
TOTAL NET ASSETS--100.00%....................................... $74,479,079
===========
</TABLE>
---------------------
* Non-income producing security
** Securities exempt from registration under Rule 144A
ADRAmerican Depository Receipt
<PAGE>
ST. JAMES PORTFOLIOS
SCHEDULE OF INVESTMENTS
MAY 31, 1995
EQUITY GROWTH PORTFOLIO
See Notes to Financial Statements.
<TABLE>
<CAPTION>
SHARES VALUE
------ -----------
<C> <S> <C>
COMMON STOCK--92.55%
AUTOMOTIVE--2.22%
64,500 Hayes Wheels International................................ $ 1,161,000
-----------
BUSINESS EQUIPMENT &
SERVICES--7.50%
75,000 EMC Corporation*.......................................... 1,725,000
60,000 G Tech Holdings*.......................................... 1,447,500
25,000 Olsten.................................................... 753,125
-----------
3,925,625
-----------
CHEMICALS--4.50%
20,000 du Pont (E.I.) de Nemours................................. 1,357,500
20,000 Loctite................................................... 997,500
-----------
2,355,000
-----------
CONSUMER GOODS &
SERVICES--11.48%
20,000 Colgate-Palmolive......................................... 1,540,000
9,000 Kimberly Clark............................................ 540,000
30,000 Premark International..................................... 1,496,250
30,000 Sherwin Williams.......................................... 1,102,500
25,000 VF........................................................ 1,331,250
-----------
6,010,000
-----------
DRUGS--2.26%
15,000 Schering-Plough........................................... 1,181,250
-----------
ELECTRICAL EQUIPMENT--5.58%
28,000 General Electric.......................................... 1,624,000
45,000 National Service Industries............................... 1,299,375
-----------
2,923,375
-----------
ELECTRONIC COMPONENTS--6.47%
40,000 AMP....................................................... 1,705,000
15,000 Intel..................................................... 1,681,875
-----------
3,386,875
-----------
ENGINEERING SERVICES--2.11%
50,400 Jacobs Engineering Group.................................. 1,102,500
-----------
ENVIRONMENTAL SERVICES--2.34%
45,000 WMX Technologies.......................................... 1,226,250
-----------
FINANCIAL SERVICES--4.23%
5,000 Brooklyn Bancorp.......................................... 153,750
8,000 Federal National Mortgage Association..................... 744,000
</TABLE>
<TABLE>
<CAPTION>
SHARES VALUE
------ -----------
<C> <S> <C>
FINANCIAL SERVICES--(CONTINUED)
20,000 Firstfed Michigan...................................... $ 580,000
33,000 Greenpoint Financial................................... 734,250
-----------
2,212,000
-----------
FOOD AND BEVERAGES--2.34%
25,000 PepsiCo................................................ 1,225,000
-----------
FREIGHT--1.47%
55,000 Kirby.................................................. 770,000
-----------
GROCERY STORES--1.89%
30,000 Penn Traffic*.......................................... 990,000
-----------
INSURANCE--2.04%
31,000 American General....................................... 1,069,500
-----------
LEASING--1.81%
90,000 Rollins Truck Leasing.................................. 945,000
-----------
MEDICAL SUPPLIES & SERVICES--9.89%
50,000 Bard (C.R.)............................................ 1,475,000
43,300 Baxter International................................... 1,510,088
25,000 Columbia/HCA Healthcare................................ 1,021,875
30,000 Sybron*................................................ 1,170,000
-----------
5,176,963
-----------
METALS & MINING--4.24%
40,000 Asarco................................................. 1,155,000
60,000 Freeport-McMoRan....................................... 1,035,000
1,500 Freeport McMoRan Copper & Gold (Class A)................. 30,750
-----------
2,220,750
-----------
OIL & GAS--6.77%
16,000 Amoco.................................................. 1,094,000
27,000 Burlington Resources................................... 1,120,500
28,500 Castle Energy.......................................... 242,250
40,000 Noble Affiliates....................................... 1,085,000
-----------
3,541,750
-----------
PUBLISHING--2.01%
25,000 Harcourt General....................................... 1,053,125
-----------
RAILROADS--2.03%
30,000 Illinois Central....................................... 1,061,250
-----------
</TABLE>
<PAGE>
ST. JAMES PORTFOLIOS
SCHEDULE OF INVESTMENTS
MAY 31, 1995
EQUITY GROWTH PORTFOLIO (CONTINUED)
See Notes to Financial Statements.
<TABLE>
<CAPTION>
SHARES VALUE
------ -----------
<C> <S> <C>
COMMON STOCK (CONTINUED)
TELECOMMUNICATIONS--9.37%
40,000 Airtouch Communications*.................................. $ 1,090,000
30,000 ALLTEL.................................................... 738,750
50,000 Comcast Corp (Class A).................................... 843,750
60,000 Mobile Telecommunications*................................ 1,342,500
15,000 Motorola.................................................. 898,125
-----------
4,913,125
-----------
TOTAL COMMON STOCK
(Cost $45,414,848)............................................... 48,450,338
-----------
PREFERRED STOCK--1.49%
TELECOMMUNICATIONS
17,000 Cellular Communications*
(Cost $809,625).......................................... 782,000
-----------
</TABLE>
---------------------
* Non-income producing security
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT VALUE
--------- -----------
<C> <S> <C>
SHORT-TERM OBLIGATION--6.09%
REPURCHASE AGREEMENT
$3,189,835 Salomon Brothers, 5.64%, dated 5/31/95, due 6/01/95,
proceeds $3,190,335 (collateralized by U.S.
Treasury Bond, 6.25%, due 8/15/23, valued at
$3,255,899)
(Cost $3,189,835).................................. $ 3,189,835
-----------
TOTAL INVESTMENTS--100.13%
(Cost $49,414,308)............................................. 52,422,173
OTHER ASSETS AND LIABILITIES
(NET)--(0.13%)................................................. (69,359)
-----------
TOTAL NET ASSETS--100.00%....................................... $52,352,814
===========
</TABLE>
<PAGE>
ST. JAMES PORTFOLIOS
SCHEDULE OF INVESTMENTS
MAY 31, 1995
VALUE EQUITY INCOME PORTFOLIO
See Notes to Financial Statements.
<TABLE>
<CAPTION>
SHARES VALUE
------ -----------
<C> <S> <C>
COMMON STOCK--91.17%
AEROSPACE--1.31%
4,600 Goodrich (B.F.)........................................... $ 228,275
-----------
BANKS--14.25%
8,100 Banc One.................................................. 281,475
1,300 BankAmerica............................................... 67,925
6,100 Boatmen's Bancshares...................................... 198,250
6,900 Corestates Financial...................................... 229,425
1,300 First Chicago............................................. 74,588
1,500 First Union Corp.......................................... 73,500
7,550 Mellon Bank............................................... 322,763
7,400 Morgan (J.P.) & Co........................................ 524,475
15,100 PNC Bank.................................................. 407,700
6,600 U.S. Bancorp.............................................. 161,700
4,000 Wachovia.................................................. 151,500
-----------
2,493,301
-----------
CHEMICALS--3.02%
2,448 Dow Chemical.............................................. 179,622
4,000 Olin...................................................... 216,000
4,800 Witco..................................................... 132,000
-----------
527,622
-----------
CONGLOMERATES--0.87%
8,000 Hanson PLC ADR............................................ 152,000
-----------
DRUGS--9.55%
6,546 American Home Products.................................... 481,950
8,800 Bristol-Myers Squibb...................................... 584,100
3,600 Lilly (Eli) & Company..................................... 268,650
9,200 Upjohn.................................................... 334,650
-----------
1,669,350
-----------
FINANCIAL SERVICES--2.19%
4,888 Ahmanson (H.F.) & Co...................................... 111,202
2,300 Beneficial................................................ 102,350
7,729 Great Western Financial................................... 169,072
-----------
382,624
-----------
FOOD & BEVERAGES--0.18%
700 Heinz (H.J.).............................................. 31,675
-----------
FOREST PRODUCTS--0.28%
1,100 Weyerhaeuser.............................................. 48,263
-----------
HEALTHCARE--0.36%
1,800 Baxter International...................................... 62,775
-----------
</TABLE>
<TABLE>
<CAPTION>
SHARES VALUE
------ -----------
<C> <S> <C>
HOUSEHOLD PRODUCTS--1.57%
6,400 Tambrands................................................. $ 274,400
-----------
INSURANCE--7.25%
4,200 Aetna Life & Casualty..................................... 250,425
13,500 American General.......................................... 465,750
8,100 Lincoln National.......................................... 366,525
700 Marsh & McLennan.......................................... 55,738
2,200 SAFECO.................................................... 129,250
-----------
1,267,688
-----------
OIL & GAS--9.56%
5,000 Atlantic Richfield........................................ 580,624
2,884 Chevron................................................... 141,677
1,300 Consolidated Natural Gas.................................. 51,838
5,588 Exxon..................................................... 398,844
4,600 Nicor..................................................... 122,475
5,481 Texaco.................................................... 375,449
-----------
1,670,907
-----------
PRINTING & PUBLISHING--5.33%
12,500 Deluxe.................................................... 398,437
10,061 Dun & Bradstreet.......................................... 533,232
-----------
931,669
-----------
RETAIL--3.01%
8,800 K mart.................................................... 112,200
8,800 Penney (J.C.)............................................. 414,700
-----------
526,900
-----------
TOBACCO--6.25%
7,800 American Brands........................................... 314,924
7,600 Philip Morris............................................. 553,850
7,500 UST Inc. ................................................. 224,063
-----------
1,092,837
-----------
UTILITIES--ELECTRIC--12.88%
11,300 Baltimore Gas & Electric.................................. 293,800
10,100 Central & South West...................................... 260,074
14,321 Northeast Utilities....................................... 341,913
5,100 NY State Electric & Gas................................... 118,575
2,400 Peco Energy............................................... 67,500
11,600 Pennsylvania Power & Light................................ 223,300
9,644 Public Service Enterprise Group........................... 286,909
9,244 Texas Utilities........................................... 333,940
</TABLE>
<PAGE>
ST. JAMES PORTFOLIOS
SCHEDULE OF INVESTMENTS
MAY 31, 1995
VALUE EQUITY INCOME PORTFOLIO (CONTINUED)
See Notes to Financial Statements.
<TABLE>
<CAPTION>
SHARES/ VALUE
------- -----------
<C> <S> <C>
COMMON STOCK (CONTINUED)
UTILITIES--ELECTRIC--(CONTINUED)
4,300 Union Electric........................................... $ 162,863
5,700 Wisconsin Energy......................................... 163,875
-----------
2,252,749
-----------
UTILITIES--TELEPHONES--13.31%
2,266 Ameritech................................................ 100,553
7,500 Bell Atlantic............................................ 418,124
996 BellSouth................................................ 61,130
15,100 GTE...................................................... 503,963
11,924 NYNEX.................................................... 497,827
14,600 Pacific Telesis Group.................................... 390,550
8,652 US West.................................................. 356,895
-----------
2,329,042
-----------
TOTAL COMMON STOCK
(Cost $14,257,662)............................................... 15,942,077
-----------
</TABLE>
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT VALUE
--------- -----------
<C> <S> <C>
SHORT-TERM OBLIGATION--4.72%
REPURCHASE AGREEMENT
$824,629 Prudential Securities Inc., 5.75%, dated 5/31/95, due
6/01/95, proceeds $824,761 (collateralized by in
various U.S. Government Agency Mortgage-Backed
Securities with rates from 4.15% to 10.00%, due from
9/15/97 to 1/15/24, valued at $841,096)
(Cost $824,629)..................................... $ 824,629
-----------
TOTAL INVESTMENTS--95.89%
(Cost $15,082,291)............................................. 16,766,706
OTHER ASSETS AND LIABILITIES
(NET)--4.11%................................................... 718,989
-----------
TOTAL NET ASSETS--100.00%....................................... $17,485,695
===========
</TABLE>
---------------------
ADR American Depository Receipt
<PAGE>
ST. JAMES PORTFOLIOS
SCHEDULE OF INVESTMENTS
MAY 31, 1995
INTERNATIONAL EQUITY PORTFOLIO
See Notes to Financial Statements.
<TABLE>
<CAPTION>
SHARES VALUE
------ ----------
<C> <S> <C>
COMMON STOCK--89.58%
ARGENTINA--2.38%
10,000 Quilmes Industries......................................... $ 210,000
----------
BERMUDA--1.03%
4,000 Partnerre Holdings Ltd. ................................... 91,000
----------
CANADA--2.20%
5,000 Imperial Oil............................................... 194,375
----------
FRANCE--8.11%
2,500 Cie Generale des Eaux...................................... 276,994
5,000 Coflexip ADR............................................... 143,750
400 Gaz et Eaux................................................ 159,549
5,000 Idia....................................................... 136,987
----------
717,280
----------
GERMANY--6.65%
300 Hochtief................................................... 177,408
300 Linde AG................................................... 176,346
60 Linde AG New............................................... 35,227
100 Munich Reinsurance......................................... 199,009
----------
587,990
----------
HONG KONG--4.69%
60,000 Hutchison Whampoa.......................................... 303,306
50,000 Johnson Electric Holdings.................................. 111,510
----------
414,816
----------
INDONESIA--0.76%
25,000 P.T. Wicaksana Overseas.................................... 67,385
----------
JAPAN--12.12%
12,000 Canon...................................................... 187,123
7,000 Canon Sales................................................ 182,753
4,000 Ito Yokado................................................. 211,695
45,000 Mitsubishi Heavy........................................... 308,862
10,000 Nippondenso................................................ 180,744
----------
1,071,177
----------
MALAYSIA--5.66%
35,000 Nestle Berhad.............................................. 271,285
80,000 Nylex Berhad............................................... 228,880
----------
500,165
----------
NETHERLANDS--9.59%
5,000 IHC Caland................................................. 133,844
2,000 Randstad Holdings.......................................... 124,288
</TABLE>
<TABLE>
<CAPTION>
SHARES VALUE
------ ----------
<C> <S> <C>
NETHERLANDS--(CONTINUED)
3,000 Royal Dutch Petroleum.................................. $ 380,249
2,500 Wolters Kluwer......................................... 209,625
----------
848,006
----------
NORWAY--4.00%
5,000 Norsk Hydro ADR........................................ 206,250
10,000 Unitor ADR............................................. 147,391
----------
353,641
----------
SINGAPORE--5.08%
15,000 Development Bank of Singapore.......................... 175,482
30,000 Keppel................................................. 273,453
----------
448,935
----------
SOUTH AFRICA--1.51%
40,000 Liblife Strategic Investments Ltd. .................... 133,188
----------
SPAIN--2.54%
2,500 Banco Intercontinental Espana.......................... 224,581
----------
SWEDEN--2.60%
8,000 Astra AB (Class B)..................................... 229,806
----------
SWITZERLAND--11.68%
1,500 BBC Brown Boveri (Registered).......................... 300,900
5,000 Nestle ADR............................................. 252,247
1,000 Societe Generale Surveillance (Registered)............. 319,760
500 Sika Finanz AG-Bearer.................................. 158,594
----------
1,031,501
----------
UNITED KINGDOM--8.98%
50,000 Blenheim Group......................................... 204,265
6,000 British Sky Broadcasting ADR........................... 153,000
12,000 Hanson PLC ADR......................................... 228,000
50,000 Rentokil Group PLC..................................... 209,030
----------
794,295
----------
TOTAL COMMON STOCK
(Cost $7,139,924)............................................. 7,918,141
----------
PREFERRED STOCK--1.68%
GERMANY
300 Krones
(Cost $157,638)....................................... 148,725
----------
</TABLE>
<PAGE>
ST. JAMES PORTFOLIOS
SCHEDULE OF INVESTMENTS
MAY 31, 1995
INTERNATIONAL EQUITY PORTFOLIO (CONTINUED)
See Notes to Financial Statements.
<TABLE>
<CAPTION>
SHARES/
PRINCIPAL
AMOUNT VALUE
--------- ----------
<C> <S> <C>
WARRANTS--0.57%
GERMANY
500 Deutsche Bank, 6/30/95
(Cost $45,748)....................................... $ 50,496
----------
CORPORATE OBLIGATION--2.82%
THAILAND 2.82%
$250,000 Bangkok Bank, 3.25%, due 3/3/04
(Cost $207,909)...................................... 249,375
----------
SHORT-TERM OBLIGATION--5.67%
REPURCHASE AGREEMENT
501,424 Prudential Securities Inc., 5.75%, dated 5/31/95, due
6/01/95, proceeds $501,504 (collateralized by various
U.S. Government Mortgage-Backed Securities with rates
from 4.15% to 10.00%, due from 9/15/97 to 1/15/24,
valued at $511,428)
(Cost $501,424)...................................... 501,424
----------
TOTAL INVESTMENTS--100.32%
(Cost $8,052,643)............................................... 8,868,161
OTHER ASSETS AND LIABILITIES
(NET)--(0.32)%.................................................. (28,127)
----------
TOTAL NET ASSETS--100.00%........................................ $8,840,034
==========
</TABLE>
---------------------
ADR American Depository Receipt
<TABLE>
<CAPTION>
% OF
NET ASSETS
----------
SECTOR ALLOCATION
<S> <C>
Advertising.......................................................... 2.32%
Banking.............................................................. 7.92
Basic Industry....................................................... 7.56
Construction & Building.............................................. 2.01
Consumer Goods....................................................... 18.03
Drugs................................................................ 2.60
Electric Services.................................................... 3.13
Electronics & Equipment.............................................. 16.03
Financial Services................................................... 2.54
Healthcare........................................................... 2.04
Insurance............................................................ 2.25
Machinery............................................................ 13.34
Natural Resources.................................................... 1.63
Oil & Gas............................................................ 6.50
Printing & Publishing................................................ 2.37
Retail............................................................... 2.58
Utilities............................................................ 1.80
------
Subtotal............................................................ 94.65
Cash Equivalents..................................................... 5.35
------
Total Net Assets................................................... 100.00%
======
</TABLE>
<PAGE>
ST. JAMES PORTFOLIOS
STATEMENTS OF ASSETS AND LIABILITIES
MAY 31, 1995
<TABLE>
<CAPTION>
TOTAL RETURN EQUITY BOND
EQUITY INCOME BOND MARKET MARKET
PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO
----------- ----------- ------------ ----------- -----------
<S> <C> <C> <C> <C> <C>
ASSETS:
Investments in
securities, at value
(Note 3d)(a).......... $15,749,263 $32,857,206 $25,765,222 $13,037,340 $15,804,130
Dividends and interest
receivable............ 35,174 558,669 263,605 48,302 160,006
Receivable for
investment securities
sold.................. 485,563 -- -- 598,110 278,876
Receivable from
affiliate (Note 2a)... 40,461 43,452 38,373 50,188 47,110
Receivable for futures
variation margin (Note
3c)................... -- -- -- 3,045 --
Prepaid expenses....... 3,848 2,842 2,792 2,781 2,797
Deferred organization
expenses (Note 1e).... 34,023 34,023 34,083 41,808 38,556
----------- ----------- ----------- ----------- -----------
Total assets........... 16,348,332 33,496,192 26,104,075 13,781,574 16,331,475
----------- ----------- ----------- ----------- -----------
LIABILITIES:
Payable for investment
securities purchased.. 894,338 -- 1,000,000 96,405 --
Due to servicing agent
(Note 2b)............. 4,616 5,405 5,049 5,002 5,112
Organization expenses
payable (Note 1e)..... 36,584 36,584 36,584 36,058 36,058
Payable for futures
variation margin (Note
3c)................... -- -- -- -- --
Accrued expenses and
other liabilities..... 11,457 13,054 11,880 11,726 9,450
----------- ----------- ----------- ----------- -----------
Total liabilities...... 946,995 55,043 1,053,513 149,191 50,620
----------- ----------- ----------- ----------- -----------
NET ASSETS: $15,401,337 $33,441,149 $25,050,562 $13,632,383 $16,280,855
=========== =========== =========== =========== ===========
REPRESENTED BY:
Paid-in capital for
beneficial interests.. $15,401,337 $33,441,149 $25,050,562 $13,632,383 $16,280,855
=========== =========== =========== =========== ===========
---------------
(a) Cost of investments. $14,490,103 $31,606,379 $24,553,520 $11,203,842 $15,192,578
</TABLE>
See Notes to Financial Statements.
<PAGE>
ST. JAMES PORTFOLIOS
STATEMENTS OF ASSETS AND LIABILITIES (CONTINUED)
MAY 31, 1995
<TABLE>
<CAPTION>
VALUE
EQUITY EQUITY INTERNATIONAL
SMALL CAP BALANCED GROWTH INCOME EQUITY
PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO
----------- ----------- ----------- ----------- -------------
<S> <C> <C> <C> <C> <C>
ASSETS:
Investments in
securities, at value
(Note 3d)(a) ......... $13,611,021 $74,806,736 $52,422,173 $16,766,706 $8,868,161
Dividends and interest
receivable............ 15,179 768,297 66,525 88,685 48,458
Receivable for
investment securities
sold.................. -- -- 560,000 744,950 --
Receivable from
affiliate (Note 2a)... 46,473 81,090 68,287 45,592 32,481
Receivable for futures
variation margin (Note
3c)................... -- -- -- -- --
Prepaid expenses....... 2,727 8,238 2,950 2,751 2,700
Deferred organization
expenses (Note 1e).... 35,340 55,199 51,049 37,577 34,184
----------- ----------- ----------- ----------- ----------
Total assets........... 13,710,740 75,719,560 53,170,984 17,686,261 8,985,984
----------- ----------- ----------- ----------- ----------
LIABILITIES:
Payable for investment
securities purchased.. -- 1,175,084 758,950 149,877 96,130
Due to servicing agent
(Note 2b)............. 4,672 6,872 6,095 4,822 4,455
Organization expenses
payable (Note 1e)..... 36,058 36,058 36,058 36,058 36,584
Payable for futures
variation margin (Note
3c)................... 2,800 -- -- -- --
Accrued expenses and
other liabilities..... 12,515 22,467 17,067 9,809 8,781
----------- ----------- ----------- ----------- ----------
Total liabilities...... 56,045 1,240,481 818,170 200,566 145,950
----------- ----------- ----------- ----------- ----------
NET ASSETS.............. $13,654,695 $74,479,079 $52,352,814 $17,485,695 $8,840,034
=========== =========== =========== =========== ==========
REPRESENTED BY:
Paid-in-capital for
beneficial interests.. $13,654,695 $74,479,079 $52,352,814 $17,485,695 $8,840,034
=========== =========== =========== =========== ==========
---------------
(a) Cost of investments. $12,660,737 $69,767,527 $49,414,308 $15,082,291 $8,052,643
</TABLE>
See Notes to Financial Statements.
<PAGE>
ST. JAMES PORTFOLIOS
STATEMENTS OF OPERATIONS
COMMENCEMENT OF OPERATIONS THROUGH MAY 31, 1995 (A)
<TABLE>
<CAPTION>
TOTAL RETURN EQUITY BOND
EQUITY INCOME BOND MARKET MARKET
PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO
---------- ---------- ------------ ---------- ----------
<S> <C> <C> <C> <C> <C>
INVESTMENT INCOME (NOTE
1):
Interest............... $ 23,004 $ 758,407 $ 481,370 $ 44,889 $1,428,528
Dividends (b).......... 70,381 -- -- 537,049 --
---------- ---------- ---------- ---------- ----------
93,385 758,407 481,370 581,938 1,428,528
---------- ---------- ---------- ---------- ----------
EXPENSES (NOTE 1F):
Investment advisory
fees (Note 2a)........ 23,905 67,732 43,478 49,516 47,955
Servicing and fund
accounting agent fees
(Note 2b)............. 20,368 23,776 21,403 54,614 54,279
Custodian fees (Note
2c)................... 8,556 3,927 3,153 18,970 6,749
Amortization of
organization expenses
(Note 1e)............. 2,739 2,739 2,679 9,058 8,354
Trustees' fees and
expenses (Note 2d).... 473 1,552 957 4,667 3,999
Auditing fees.......... 5,000 5,000 5,000 5,000 5,000
Legal fees............. 2,704 5,977 4,479 3,864 4,594
Miscellaneous.......... 621 481 702 3,776 479
---------- ---------- ---------- ---------- ----------
Total Expenses......... 64,366 111,184 81,851 149,465 131,409
Less: Waiver of fees
(Note 2a)............. (23,905) (67,732) (43,478) (49,516) (47,955)
Reimbursement of
expenses (Note 2a).. (40,461) (43,452) (38,373) (99,949) (83,454)
---------- ---------- ---------- ---------- ----------
Net Expenses........... 0 0 0 0 0
---------- ---------- ---------- ---------- ----------
NET INVESTMENT INCOME... 93,385 758,407 481,370 581,938 1,428,528
---------- ---------- ---------- ---------- ----------
REALIZED AND UNREALIZED
GAIN (LOSS) (NOTE 3):
Net realized gain
(loss) on investments. (284,228) 95,033 127,441 1,516,504 136,599
Net realized gain
(loss) on foreign
currency transactions. -- -- -- -- --
Net realized gain on
futures (Note 3c)..... -- -- -- 74,965 --
Net change in
unrealized
appreciation on
investments(c)........ 1,259,160 1,250,827 1,211,702 1,837,991 611,552
---------- ---------- ---------- ---------- ----------
NET REALIZED AND
UNREALIZED GAIN ....... 974,932 1,345,860 1,339,143 3,429,460 748,151
---------- ---------- ---------- ---------- ----------
NET INCREASE IN NET
ASSETS RESULTING FROM
OPERATIONS............. $1,068,317 $2,104,267 $1,820,513 $4,011,398 $2,176,679
========== ========== ========== ========== ==========
---------------
(a) Commencement of
operations: 01/16/95 01/16/95 01/19/95 07/11/94 07/11/94
(b) Net of foreign taxes
withheld: $1,525 -- -- $3,499 --
(c)Includes net
unrealized
appreciation
(depreciation) of
financial futures and
foreign currency: -- -- -- $4,493 --
</TABLE>
See Notes to Financial Statements.
<PAGE>
ST. JAMES PORTFOLIOS
STATEMENTS OF OPERATIONS (CONTINUED)
COMMENCEMENT OF OPERATIONS THROUGH MAY 31, 1995 (A)
<TABLE>
<CAPTION>
SMALL EQUITY VALUE EQUITY INTERNATIONAL
CAP BALANCED GROWTH INCOME EQUITY
PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO
---------- ---------- ---------- ------------ -------------
<S> <C> <C> <C> <C> <C>
INVESTMENT INCOME (NOTE
1):
Interest............... $ 31,685 $2,401,616 $ 112,874 $ 31,027 $ 31,668
Dividends (b).......... 167,293 795,427 496,863 779,640 66,283
---------- ---------- ---------- ---------- --------
198,978 3,197,043 609,737 810,667 97,951
---------- ---------- ---------- ---------- --------
EXPENSES (NOTE 1F):
Investment advisory
fees (Note 2a)........ 75,292 365,664 285,384 102,039 26,276
Servicing and fund
accounting agent fees
(Note 2b)............. 50,206 72,155 66,174 52,265 18,964
Custodian fees (Note
2c)................... 10,500 19,156 15,079 7,991 3,359
Amortization of
organization expenses
(Note 1e)............. 7,657 11,960 11,061 8,142 2,579
Trustees' fees and
expenses (Note 2d).... 2,418 11,482 9,148 3,330 368
Auditing fees.......... 5,000 5,000 5,000 5,000 5,000
Legal fees............. 3,421 17,697 12,935 4,370 1,605
Miscellaneous.......... 448 616 556 456 606
---------- ---------- ---------- ---------- --------
Total Expenses......... 154,942 503,730 405,337 183,593 58,757
Less: Waiver of fees
(Note 2a)............. (75,292) (365,664) (285,384) (102,039) (26,276)
Reimbursement of
expenses (Note 2a).. (79,650) (138,066) (119,953) (81,554) (32,481)
---------- ---------- ---------- ---------- --------
Net Expenses........... 0 0 0 0 0
---------- ---------- ---------- ---------- --------
NET INVESTMENT INCOME... 198,978 3,197,043 609,737 810,667 97,951
---------- ---------- ---------- ---------- --------
REALIZED AND UNREALIZED
GAIN (LOSS) (NOTE 3):
Net realized gain
(loss) on investments
...................... 218,682 1,047,162 2,653,871 511,049 9,535
Net realized gain
(loss) on foreign
currency transactions. -- -- -- -- (779)
Net realized gain on
futures (Note 3c)..... 29,096 -- -- -- --
Net change in
unrealized
appreciation on
investments(c)........ 945,454 5,039,209 3,007,865 1,684,415 815,551
---------- ---------- ---------- ---------- --------
NET REALIZED AND
UNREALIZED GAIN ....... 1,193,232 6,086,371 5,661,736 2,195,464 824,307
---------- ---------- ---------- ---------- --------
NET INCREASE IN NET
ASSETS RESULTING FROM
OPERATIONS............. $1,392,210 $9,283,414 $6,271,473 $3,006,131 $922,258
========== ========== ========== ========== ========
---------------
(a)Commencement of
operations: 07/11/94 07/11/94 07/11/94 07/11/94 01/24/95
(b)Net of foreign taxes
withheld: -- $ 13,537 -- $ 835 $ 11,159
(c)Includes net
unrealized
appreciation
(depreciation) of
financial futures and
foreign currency: $ (4,830) -- -- -- $ 33
</TABLE>
See Notes to Financial Statements.
<PAGE>
ST. JAMES PORTFOLIOS
STATEMENTS OF CHANGES IN NET ASSETS
COMMENCEMENT OF OPERATIONS THROUGH MAY 31, 1995(A)
<TABLE>
<CAPTION>
TOTAL RETURN EQUITY BOND
EQUITY INCOME BOND MARKET MARKET
PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO
----------- ----------- ------------ ----------- -----------
<S> <C> <C> <C> <C> <C>
INCREASE (DECREASE) IN
NET ASSETS FROM:
OPERATIONS:
Net investment income.. $ 93,385 $ 758,407 $ 481,370 $ 581,938 $ 1,428,528
Net realized gain
(loss) on
investments........... (284,228) 95,033 127,441 1,516,504 136,599
Net realized gain
(loss) on foreign
currency
transactions.......... -- -- -- -- --
Net realized gain on
futures............... -- -- -- 74,965 --
Net change in
unrealized
appreciation on
investments for the
period................ 1,259,160 1,250,827 1,211,702 1,837,991 611,552
----------- ----------- ----------- ----------- -----------
Net increase in net
assets resulting
from operations...... 1,068,317 2,104,267 1,820,513 4,011,398 2,176,679
----------- ----------- ----------- ----------- -----------
TRANSACTIONS IN
INVESTORS' BENEFICIAL
INTEREST:
Additions.............. 14,601,919 31,900,618 23,570,121 34,190,623 32,835,501
Reductions............. (269,006) (563,843) (340,179) (24,586,405) (18,748,092)
----------- ----------- ----------- ----------- -----------
Net increase from
transactions in
investors' beneficial
interest.............. 14,332,913 31,336,775 23,229,942 9,604,218 14,087,409
----------- ----------- ----------- ----------- -----------
TOTAL INCREASE IN NET
ASSETS.............. 15,401,230 33,441,042 25,050,455 13,615,616 16,264,088
NET ASSETS
Beginning of period
(Note 1).............. 107 107 107 16,767 16,767
----------- ----------- ----------- ----------- -----------
End of period.......... $15,401,337 $33,441,149 $25,050,562 $13,632,383 $16,280,855
=========== =========== =========== =========== ===========
SUPPLEMENTARY DATA
COMMENCEMENT OF
OPERATIONS THROUGH MAY
31, 1995(A)
<CAPTION>
TOTAL RETURN EQUITY BOND
EQUITY INCOME BOND MARKET MARKET
PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO
----------- ----------- ------------ ----------- -----------
<S> <C> <C> <C> <C> <C>
Ratios:
Expenses to Average Net
Assets(b)(c).......... 0.00% 0.00% 0.00% 0.00% 0.00%
Net Investment Income
to Average Net
Assets(b)(c).......... 2.54% 7.28% 7.20% 2.94% 7.45%
Portfolio Turnover(d).. 34% 34% 84% 98% 67%
---------------
(a) Commencement of
operations: 01/16/95 01/16/95 01/19/95 07/11/94 07/11/94
(b) Annualized
(c) Reflects a voluntary
expense 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(b)........ 1.75% 1.07% 1.22% 0.75% 0.69%
Net Investment Income
to
Average Net
Assets(b)........... 0.79% 6.21% 5.98% 2.19% 6.76%
</TABLE>
(d) Portfolio Turnover calculation excludes in-kind transfers of securities.
(See Note 3a)
See Notes to Financial Statements.
<PAGE>
ST. JAMES PORTFOLIOS
STATEMENTS OF CHANGES IN NET ASSETS (CONTINUED)
COMMENCEMENT OF OPERATIONS THROUGH MAY 31, 1995(A)
<TABLE>
<CAPTION>
SMALL EQUITY VALUE EQUITY INTERNATIONAL
CAP BALANCED GROWTH INCOME EQUITY
PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO
----------- ------------ ------------ ------------ -------------
<S> <C> <C> <C> <C> <C>
INCREASE (DECREASE) IN
NET ASSETS FROM:
OPERATIONS:
Net investment income.. $ 198,978 $ 3,197,043 $ 609,737 $ 810,667 $ 97,951
Net realized gain on
investments........... 218,682 1,047,162 2,653,871 511,049 9,535
Net realized loss on
foreign currency
transactions.......... -- -- -- -- (779)
Net realized gain on
futures............... 29,096 -- -- -- --
Net change in
unrealized
appreciation on
investments for the
period................ 945,454 5,039,209 3,007,865 1,684,415 815,551
----------- ------------ ------------ ------------ ----------
Net increase in net
assets resulting
from operations...... 1,392,210 9,283,414 6,271,473 3,006,131 922,258
----------- ------------ ------------ ------------ ----------
TRANSACTIONS IN
INVESTORS' BENEFICIAL
INTEREST:
Additions.............. 20,475,410 96,451,552 73,536,283 26,435,352 8,407,110
Reductions............. (8,229,692) (31,272,654) (27,471,709) (11,972,555) (489,441)
----------- ------------ ------------ ------------ ----------
Net increase from
transactions in
investors' beneficial
interest.............. 12,245,718 65,178,898 46,064,574 14,462,797 7,917,669
----------- ------------ ------------ ------------ ----------
TOTAL INCREASE IN NET
ASSETS.............. 13,637,928 74,462,312 52,336,047 17,468,928 8,839,927
NET ASSETS
Beginning of period
(Note 1).............. 16,767 16,767 16,767 16,767 107
----------- ------------ ------------ ------------ ----------
End of period.......... $13,654,695 $ 74,479,079 $ 52,352,814 $ 17,485,695 $8,840,034
=========== ============ ============ ============ ==========
SUPPLEMENTARY DATA
COMMENCEMENT OF
OPERATIONS THROUGH MAY
31, 1995(A)
<CAPTION>
SMALL EQUITY VALUE EQUITY INTERNATIONAL
CAP BALANCED GROWTH INCOME EQUITY
PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO
----------- ------------ ------------ ------------ -------------
<S> <C> <C> <C> <C> <C>
Ratios:
Expenses to Average Net
Assets(b)(c).......... 0.00% 0.00% 0.00% 0.00% 0.00%
Net Investment Income
to Average Net
Assets(b)(c).......... 1.72% 5.68% 1.39% 5.16% 3.73%
Portfolio Turnover(d).. 47% 57% 122% 28% 8%
---------------
(a) Commencement of
operations: 07/11/94 07/11/94 07/11/94 07/11/94 01/24/95
(b) Annualized
(c) Reflects a voluntary
expense 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(b)......... 1.34% 0.90% 0.92% 1.17% 2.24%
Net Investment Income
to Average Net
Assets(b)............. 0.38% 4.78% 0.47% 3.99% 1.49%
(d) Portfolio Turnover
calculation excludes
in-kind transfers of
securities. (See
Note 3a)
</TABLE>
See Notes to Financial Statements.
<PAGE>
ST. JAMES PORTFOLIOS
NOTES TO FINANCIAL STATEMENTS
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, ten of which are active and described herein (each a
"Portfolio"; collectively, the "Portfolios"): Equity Portfolio, Income
Portfolio, Total Return Bond Portfolio, Equity Market Portfolio, Bond Market
Portfolio, Small Cap Portfolio, Balanced Portfolio, Equity Growth Portfolio,
Value Equity Income Portfolio and International Equity Portfolio. The
Portfolio Series had no operations until July 11, 1994 (when operations
commenced with respect to the Equity Market, Bond Market, Small Cap, Balanced,
Equity Growth and Value Equity Income Portfolios) 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 an initial beneficial interest (the "Initial Interest") of each
Portfolio at the respective purchase prices of $16,667 each to a corresponding
series of Excelsior Institutional Trust (each a "Fund") as noted below and the
sale of an Initial Interest of each Portfolio at the respective purchase price
of $100 each to UST Distributors, Inc. The Equity, Income, Total Return Bond
and International Equity Portfolios commenced operations on January 16, 1995,
January 16, 1995, January 19, 1995 and January 24, 1995, respectively. The
Declaration of Trust permits the Portfolio Series to issue an unlimited number
of beneficial interests in each Portfolio.
<TABLE>
<CAPTION>
PORTFOLIO FUND
--------- ----
<S> <C>
Equity Portfolio.................................. Equity Fund
Income Portfolio.................................. Income Fund
Total Return Bond Portfolio....................... Total Return Bond Fund
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
International Equity Portfolio.................... International Equity Fund
</TABLE>
United States Trust Company of The Pacific Northwest ("U.S. Trust Pacific")
serves as investment advisor for the Portfolios listed below. 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:
Equity Market Portfolio, Bond
Market Portfolio and Small
Cap Portfolio................. United States Trust Company of New York
("U.S. Trust")
Balanced Portfolio............. Becker Capital Management
Equity Growth Portfolio........ Luther King Capital Management
Value Equity Income Portfolio.. Spare Kaplan Bischel & Associates
International Equity
Portfolio..................... Harding, Loevner Management, L.P.
U.S. Trust serves directly as the investment advisor for the Equity Portfolio,
Income Portfolio and Total Return Bond Portfolio. 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.
<PAGE>
ST. JAMES PORTFOLIOS
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
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 domestic exchange are valued at the last sale
price on the exchange on which such securities are primarily traded or at the
last sale price on a national securities market. Securities traded over-the-
counter are valued each business day on the basis of closing over-the-counter
bid prices. Securities for which there were no transactions are valued at the
average of the most recent bid and asked prices (as calculated by an
independent pricing service (the "Service") based upon its evaluation of the
market for such securities) when, in the judgment of the Service, quoted bid
and asked prices for securities are readily available and are representative
of the market. Bid price is used when no asked price is available. Investments
in securities that are primarily traded on foreign securities exchanges are
generally valued at the preceding closing values of such securities on their
respective exchanges, except that when an occurrence subsequent to the time a
value was so established is likely to have changed such value, then a fair
value of those securities will be determined by consideration of other factors
under the direction of the Portfolio Series' Trustees. A security which is
traded on more than one exchange is valued at the quotation on the exchange
determined to be the primary market on which the security is traded.
All other foreign securities are valued at the last current bid quotation if
market quotations are available, or at fair value as determined in accordance
with policies established by the Board of Trustees. Investment valuations,
other assets, and liabilities initially expressed in foreign currencies are
converted each business day into U.S. dollars based upon current exchange
rates. Purchases and sales of foreign investments and income and expenses are
converted into U.S. dollars based upon currency exchange rates prevailing upon
the respective dates of such transactions. Gains and losses attributable to
foreign currency rates are recorded for financial statement purposes as
realized gains and losses on investments.
Securities for which market quotations are not readily available are valued
at fair value pursuant to guidelines 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) Forward foreign currency exchange contracts--The International Equity
Portfolio's participation in forward currency exchange contracts will be
limited to hedging involving either specific transactions or portfolio
positions. Transaction hedging involves the purchase or sale of foreign
currency with respect to specific receivables or payables of the Portfolio
generally arising in connection with the purchase or sale of its portfolio
securities. Risk may arise upon entering into these contracts from the
potential inability of counterparties to meet the terms of their contracts and
is generally limited to the amount of unrealized gain on the contracts, if
any, on the date of default. Risk may also arise from unanticipated movements
in the value of a foreign currency relative to the U.S. dollar. Contracts are
marked to market daily and the change in market value is recorded as
unrealized appreciation or depreciation. Realized gains and losses arising
from such transactions are included in net realized gains or losses from
foreign currency transactions.
<PAGE>
ST. JAMES PORTFOLIOS
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
c) Security transactions and investment income--Security transactions are
recorded on a trade date basis. Realized gains and losses on investments sold
are recorded on the basis of identified cost. Interest income, including where
applicable amortization of discounts and premiums on investments, is recorded
on the accrual basis. Dividend income is recorded on the ex-dividend date,
except for certain dividends from foreign securities, which are recorded as
soon as the Portfolio is informed of the dividend.
d) Repurchase agreements--The Portfolios may purchase portfolio securities
from financial institutions deemed to be creditworthy by the investment
advisor subject to the seller's agreement to repurchase and the 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 102% of the repurchase price (including accrued interest).
If the value of the underlying security, including accrued interest, falls
below 102% of the repurchase price plus accrued interest, the 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 a risk of loss in the event that the portfolio is delayed or
prevented from exercising its right to dispose of the underlying collateral
securities or to the extent that proceeds from a sale of the underlying
securities were less than the repurchase price under the agreement.
e) Deferred Organization Expenses--The following organization expenses have
been deferred and are being amortized on a straight-line basis over a period
not to exceed five years beginning with the commencement of operations of the
Portfolios:
Equity Portfolio............. $36,762 Small Cap Portfolio.......... $42,997
Income Portfolio............. $36,762 Balanced Portfolio........... $67,159
Total Return Bond Portfolio.. $36,762 Equity Growth Portfolio...... $62,110
Equity Market Portfolio...... $50,866 Value Equity Income
Bond Market Portfolio........ $46,910 Portfolio.................... $45,719
International Equity
Portfolio.................... $36,763
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 of that Portfolio. The amount
paid by the Portfolio Series on behalf of a Portfolio on any withdrawal from
the Portfolio of the Initial Interest of UST Distributors, Inc. will be
reduced by a pro rata portion of any unamortized organization expenses of the
Portfolio. With regard to each Portfolio, this reduction will be determined
with respect to each withdrawal of an Initial Interest by calculating the
proportion of the amount of the Initial Interest withdrawn to the aggregate
amount of the Initial Interests 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 organizational expense at such time.
f) 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.
<PAGE>
ST. JAMES PORTFOLIOS
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
g) 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
Investment Advisory Agreements with U.S. Trust and 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% of the Equity Market and Bond
Market Portfolios, 0.65% for the Equity, Income, Total Return Bond, Small Cap,
Balanced, Equity Growth and Value Equity Income Portfolios, and 1.00% for the
International Equity Portfolio. For the period ended May 31, 1995, U.S. Trust
and U.S. Trust Pacific voluntarily agreed to waive all of their investment
advisory fees amounting to the following:
<TABLE>
<S> <C>
Equity Portfolio............. $23,905
Income Portfolio............. $67,732
Total Return Bond Portfolio.. $43,478
Equity Market Portfolio...... $49,516
Bond Market Portfolio........ $47,955
</TABLE>
<TABLE>
<S> <C>
Small Cap Portfolio............................................... $ 75,292
Balanced Portfolio................................................ $365,664
Equity Growth Portfolio........................................... $285,384
Value Equity Income Portfolio..................................... $102,039
International Equity Portfolio.................................... $ 26,276
</TABLE>
In addition, U.S. Trust 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 ended May 31,
1995, U.S. Trust voluntarily reimbursed the Portfolio Series the following
amounts:
<TABLE>
<S> <C>
Equity Portfolio............. $40,461
Income Portfolio............. $43,452
Total Return Bond Portfolio.. $38,373
Equity Market Portfolio...... $99,949
Bond Market Portfolio........ $83,454
</TABLE>
<TABLE>
<S> <C>
Small Cap Portfolio............................................... $ 79,650
Balanced Portfolio................................................ $138,066
Equity Growth Portfolio........................................... $119,953
Value Equity Income Portfolio..................................... $ 81,554
International Equity Portfolio.................................... $ 32,481
</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, 0.40% for the Equity Growth and Value Equity Income Portfolios, and
0.45% for the International Equity Portfolio. The subadvisors are compensated
only by U.S. Trust Pacific, and receive no fee directly from the Portfolio
Series. For the period ended May 31, 1995, subadvisory fees amounted to the
following:
<TABLE>
<S> <C>
Equity Market Portfolio.. $ 49,516
Bond Market Portfolio.... $ 47,955
Small Cap Portfolio...... $ 75,292
Balanced Portfolio....... $239,088
</TABLE>
<TABLE>
<S> <C>
Equity Growth Portfolio........................................... $175,621
Value Equity Income Portfolio..................................... $ 62,793
International Equity Portfolio.................................... $ 11,824
</TABLE>
b) Pursuant to 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 SFSI
serve as officers of
<PAGE>
ST. JAMES PORTFOLIOS
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
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 plus out of pocket expenses. For the period ended May 31, 1995,
fees charged under the Agreement for each Portfolio amounted to the following:
<TABLE>
<S> <C>
Equity Portfolio............. $20,368
Income Portfolio............. $23,776
Total Return Bond Portfolio.. $21,403
Equity Market Portfolio...... $54,614
Bond Market Portfolio........ $54,279
</TABLE>
<TABLE>
<S> <C>
Small Cap Portfolio................................................ $50,206
Balanced Portfolio................................................. $72,155
Equity Growth Portfolio............................................ $66,174
Value Equity Income Portfolio...................................... $52,265
International Equity Portfolio..................................... $18,964
</TABLE>
c) U.S. Trust serves as custodian of the Portfolios' assets pursuant to a
Custody Agreement between U.S. Trust and the Portfolio Series. Pursuant to
delegation authority provided under the Custody Agreement, U.S. Trust has
entered into a subcustody agreement with Investors Bank & Trust Company
("IBT") with respect to the Portfolio Series. For services provided thereunder
by IBT, U.S. Trust has agreed to pay IBT a fee as agreed upon from time to
time. IBT receives no fee directly from the Portfolio Series for its
subcustody services.
Fees received by U.S. Trust under the Custody Agreement for the period ended
May 31, 1995 amounted to the following:
Equity Portfolio............. $ 8,556 Small Cap Portfolio.......... $10,500
Income Portfolio............. $ 3,927 Balanced Portfolio........... $19,156
Total Return Bond Portfolio.. $ 3,153 Equity Growth Portfolio...... $15,079
Equity Market Portfolio...... $18,970 Value Equity Income
Bond Market Portfolio........ $ 6,749 Portfolio.................... $ 7,991
International Equity
Portfolio.................... $ 3,359
d) Independent Trustees of the Portfolio 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. Officers and Trustees deemed to be affiliated or "interested
persons" under the Act of the Portfolio Series or the Trust receive no
compensation from the Portfolio Series or Trust for their services.
3. PURCHASES AND SALES OF INVESTMENT SECURITIES
a) Investment transactions (excluding short-term investments) for the period
ended May 31, 1995 were as follows:
<TABLE>
<CAPTION>
COST OF CONTRIBUTION PROCEEDS
PURCHASES IN KIND FROM SALES
----------- ------------ -----------
<S> <C> <C> <C>
Equity Portfolio.......................... $13,513,487 $3,082,356 $ 2,851,416
Income Portfolio.......................... $35,671,056 $2,572,283 $ 7,154,320
Total Return Bond Portfolio............... $34,257,977 $1,065,955 $12,376,567
Equity Market Portfolio................... $28,335,763 -- $18,881,078
</TABLE>
<PAGE>
ST. JAMES PORTFOLIOS
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
<TABLE>
<CAPTION>
COST OF CONTRIBUTION PROCEEDS
PURCHASES IN KIND FROM SALES
----------- ------------ -----------
<S> <C> <C> <C>
Bond Market Portfolio..................... $12,633,873 $18,368,738 $16,140,644
Small Cap Portfolio....................... $ 6,564,523 $10,867,612 $ 5,397,376
Balanced Portfolio........................ $40,797,824 $55,122,809 $32,206,524
Equity Growth Portfolio................... $53,637,021 $42,762,650 $52,676,570
Value Equity Income Portfolio............. $ 4,289,532 $18,620,401 $ 9,163,320
International Equity Portfolio............ $ 7,948,180 -- $ 406,495
</TABLE>
b) Investment transactions in U.S. Government and Agency Obligations
(excluding short-term investments) for the period ended May 31, 1995 were as
follows:
<TABLE>
<CAPTION>
COST OF CONTRIBUTION PROCEEDS
PURCHASES IN-KIND FROM SALES
----------- ------------ -----------
<S> <C> <C> <C>
Equity Portfolio.......................... -- -- --
Income Portfolio.......................... $31,662,656 $ 510,937 $ 5,089,062
Total Return Bond Portfolio............... $30,770,046 -- $11,739,042
Equity Market Portfolio................... -- -- --
Bond Market Portfolio..................... $10,606,404 $18,320,517 $16,140,644
Small Cap Portfolio....................... -- -- --
Balanced Portfolio........................ $10,557,894 $12,083,900 $10,096,699
Equity Growth Portfolio................... -- -- --
Value Equity Income Portfolio............. -- -- --
International Equity Portfolio............ -- -- --
</TABLE>
c) With respect to the Equity Market and Small Cap Portfolios, the
portfolios are engaged in financial futures contracts. Futures contracts on
securities and securities indices will be used primarily to accomodate cash
flows or in anticipation of taking a market position when, in the opinion of
the investment advisor, available cash balances do not permit economically
efficient purchases of securities. The Portfolios are exposed to market risk
as a result of changes in the value of the underlying financial instruments.
Investments in financial futures require the Portfolios to mark to market the
value of each contract 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 Portfolios recognize a
realized gain or loss. Investments in financial futures require initial margin
deposits with a custodian, which consists of cash or securities, up to
approximately 10% of the contract amount. The amount of these deposits is
determined by the stock exchange or board of trade on which the contract is
traded.
<PAGE>
ST. JAMES PORTFOLIOS
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
d) At May 31, 1995, the cost and gross unrealized appreciation and
depreciation in the value of investments owned by the Portfolios, as computed
on a federal tax basis, were as follows:
<TABLE>
<CAPTION>
TOTAL RETURN EQUITY BOND
EQUITY INCOME BOND MARKET MARKET
PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO
----------- ----------- ------------ ----------- -------------
<S> <C> <C> <C> <C> <C>
Aggregate cost.......... $14,490,103 $31,606,379 $24,553,520 $11,230,028 $15,192,578
=========== =========== =========== =========== ===========
Gross unrealized
appreciation........... $ 1,337,208 $ 1,252,690 $ 1,211,702 $ 1,986,981 $ 612,042
Gross unrealized
depreciation........... (78,048) (1,863) -- (179,669) (490)
----------- ----------- ----------- ----------- -----------
Net unrealized
appreciation
(depreciation)......... $ 1,259,160 $ 1,250,827 $ 1,211,702 $ 1,807,312 $ 611,552
=========== =========== =========== =========== ===========
<CAPTION>
VALUE
SMALL EQUITY EQUITY INTERNATIONAL
CAP BALANCED GROWTH INCOME EQUITY
PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO
----------- ----------- ------------ ----------- -------------
<S> <C> <C> <C> <C> <C>
Aggregate cost.......... $12,664,073 $69,773,777 $49,448,173 $15,083,656 $ 8,052,643
=========== =========== =========== =========== ===========
Gross unrealized
appreciation........... $ 1,656,594 $ 6,027,032 $ 4,278,015 $ 1,852,413 $ 864,776
Gross unrealized
depreciation........... (709,646) (994,073) (1,304,015) (169,363) (49,258)
----------- ----------- ----------- ----------- -----------
Net unrealized
appreciation
(depreciation)......... $ 946,948 $ 5,032,959 $ 2,974,000 $ 1,683,050 $ 815,518
=========== =========== =========== =========== ===========
</TABLE>
<PAGE>
REPORT OF PRICE WATERHOUSE LLP, INDEPENDENT ACCOUNTANTS
TO THE TRUSTEES AND INVESTORS OF THE
ST. JAMES PORTFOLIOS
In our opinion, the accompanying statements of assets and liabilities,
including the schedules of investments, and the related statements of
operations and of changes in net assets and the supplementary data present
fairly, in all material respects, the financial position of each of the
Portfolios constituting the St. James Portfolios (the "Portfolios") at May 31,
1995, and the results of their operations, the changes in their net assets,
and their supplementary data for the periods indicated, in conformity with
generally accepted accounting principles. These financial statements and
supplementary data (hereafter referred to as "financial statements") are the
responsibility of the Portfolios' management; our responsibility is to express
an opinion on these financial statements based on our audits. We conducted our
audits of these financial statements in accordance with generally accepted
auditing standards which require that we plan and perform the audit to obtain
reasonable assurance about whether the financial statements are free of
material misstatement. An audit includes examining, on a test basis, evidence
supporting the amounts and disclosures in the financial statements, assessing
the accounting principles used and significant estimates made by management,
and evaluating the overall financial statement presentation. We believe that
our audits, which included confirmation of securities at May 31, 1995 by
correspondence with the custodian and brokers, and the application of
alternative auditing procedures where confirmations from brokers were not
received, provide a reasonable basis for the opinion expressed above.
Price Waterhouse LLP
Boston, Massachusetts
July 25, 1995
<PAGE>
USTEXITA95
