<PAGE>
Investment Advisors
United States Trust Company of New York
114 West 47th Street
New York, NY 10036
U.S. Trust Company of Connecticut
225 High Ridge Road
Stamford, CT 06905
United States Trust Company of the
Pacific Northwest
4380 Southwest Macadam Avenue
Suite 450
Portland, OR 97201
Transfer Agent
Chase Global Funds Services Company
73 Tremont Street
Boston, MA 02108
(800) 909-1989
Distributor
Edgewood Services, Inc.
Clearing Operations
P.O. Box 897
Pittsburgh, PA 15230
SHARES OF THE FUNDS ARE NOT DEPOSITS OR OBLIGATIONS OF, OR GUARANTEED OR
ENDORSED 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.
US EXIT SA97
[GRAPHIC OMITTED]
EQUITY FUND
INCOME FUND
TOTAL RETURN BOND FUND
BALANCED FUND
INTERNATIONAL EQUITY FUND
OPTIMUM GROWTH FUND
VALUE EQUITY FUND
Semi-Annual Report
September 30, 1997
<PAGE>
Excelsior Institutional Trust
Schedule of Investments
September 30, 1997 (Unaudited)
Equity Fund
Shares Value
---------- -------------
COMMON STOCKS -- 98.16%
CONSUMER STAPLES -- 23.24%
34,616 CPC International, Inc. ............ $ 3,206,307
32,189 Eastman Kodak Co. .................. 2,090,273
43,655 Gillette Co. ........................ 3,767,972
70,089 Johnson & Johnson .................. 4,038,879
91,281 Mattel, Inc. ........................ 3,023,683
84,198 PepsiCo, Inc. ..................... 3,415,281
73,891 Pfizer, Inc. ........................ 4,438,078
56,154 Procter & Gamble Co. ............... 3,878,136
54,152 Schering-Plough Corp. ............... 2,788,828
-------------
30,647,437
-------------
TECHNOLOGY -- 16.67%
50,077 +Cisco Systems, Inc. ............... 3,658,751
43,800 Ericsson LM ADR ..................... 2,099,663
47,618 Hewlett Packard Co. ............... 3,312,427
53,373 Intel Corp. ........................ 4,930,331
35,300 +Microsoft Corp. ..................... 4,670,631
90,981 +Oracle Corp. ........................ 3,315,102
-------------
21,986,905
-------------
FINANCIAL -- 16.23%
30,170 American International Group,
Inc. .............................. 3,113,218
24,467 Aon Corp. ........................... 1,293,693
29,935 BankBoston Corp. .................. 2,647,377
19,090 Citicorp ........................... 2,556,867
25,133 Household International, Inc. ...... 2,844,741
53,584 Mellon Bank Corp. .................. 2,933,724
57,826 Morgan Stanley, Dean Witter,
Discover and Co. .................. 3,126,218
47,249 Norwest Corp. ..................... 2,894,001
-------------
21,409,839
-------------
CAPITAL GOODS -- 14.78%
63,112 General Electric Co. ............... 4,295,561
50,651 Honeywell, Inc. ..................... 3,403,114
58,255 Illinois Tool Works, Inc. ......... 2,912,750
36,776 Raychem Corp. ..................... 3,107,572
73,931 +Thermo Electron Corp. ............... 2,957,240
104,066 Westinghouse Electric Corp. ......... 2,816,286
-------------
19,492,523
-------------
ENERGY -- 8.75%
28,234 British Petroleum Co. ADR ......... 2,564,000
<PAGE>
Shares Value
---------- -------------
COMMON STOCKS--(continued)
ENERGY -- (continued)
25,913 Louisiana Land & Exploration
Co. ................................ $ 2,029,312
42,702 Mobil Corp. ........................ 3,159,948
68,287 Royal Dutch Petroleum Co. ......... 3,789,929
-------------
11,543,189
-------------
CONSUMER CYCLICAL -- 7.95%
41,300 +Lear Corp. ........................ 2,034,025
41,073 McDonald's Corp. .................. 1,956,101
76,785 Stewart Enterprises, Inc., Class A 3,349,746
58,203 Time Warner, Inc. .................. 3,153,875
-------------
10,493,747
-------------
RAW/INTERMEDIATE
MATERIALS -- 5.31%
23,855 Monsanto Co. ........................ 930,345
18,142 Nucor Corp. ........................ 955,857
28,087 Pioneer Hi-Bred International,
Inc. ............................. 2,555,917
4,771 +Solutia, Inc. ..................... 95,420
55,335 +Steel Dynamics, Inc. ............... 1,303,831
57,917 Worthington Industries, Inc. ...... 1,169,199
-------------
7,010,569
-------------
UTILITY -- 5.23%
57,870 +AES Corp. ........................... 2,531,812
123,542 +WorldCom, Inc. ..................... 4,362,577
-------------
6,894,389
-------------
TOTAL COMMON STOCKS
(Cost $97,021,546) .................. 129,478,598
-------------
Principal
Amount
- ---------
DEMAND NOTES -- 1.81%
$ 622,000 Associates Corp. of North America
Master Notes ....................... 622,000
1,762,000 General Electric Co. Promissory
Notes ............................. 1,762,000
-------------
TOTAL DEMAND NOTES
(Cost $2,384,000) .................. 2,384,000
-------------
TOTAL INVESTMENTS
(Cost $99,405,546) ................... 99.97% $131,862,598
OTHER ASSETS AND
LIABILITIES (NET) ................... 0.03 38,665
------- -------------
NET ASSETS ............................ 100.00% $131,901,263
======= =============
- ------------
+ Non-income producing security.
ADR -- American Depositary Receipt.
See Notes to Financial Statements.
<PAGE>
Excelsior Institutional Trust
Schedule of Investments
September 30, 1997 (Unaudited)
Income Fund
Principal Coupon Maturity
Amount Rate Date Value
- ------------- -------- ---------- ------------
U.S. GOVERNMENT & AGENCY
OBLIGATIONS -- 60.56%
Federal Home Loan
Mortgage Corporation
$ 16,009 Pool #220001 ............ 10.75% 7/01/00 $ 17,033
Federal National
Mortgage Association
1,390,833 Pool #190748 ............ 5.50 4/01/01 1,365,951
3,334,930 Pool #303859 ............ 7.50 3/01/11 3,411,010
1,744,674 Pool #316972 ............ 7.50 7/01/25 1,773,571
3,385,140 Pool #250911 ............ 7.00 5/01/27 3,371,390
1,600,800 Pool #394250 ............ 7.00 9/01/27 1,583,541
Government National
Mortgage Association
2,490,039 Pool #401450 ............ 7.50 5/15/27 2,531,274
2,799,715 Pool #80106 ............ 6.00 8/20/27 2,817,045
1,250,000 Tennessee Valley
Authority, Put
Bond .................. 5.88 4/01/36 1,264,241
9,323,000 U.S. Treasury
Bonds .................. 7.25 5/15/16 10,124,200
2,940,000 U.S. Treasury Notes....... 5.75 8/15/03 2,894,983
1,500,000 U.S. Treasury Notes....... 6.50 10/15/06 1,531,875
------------
TOTAL U.S. GOVERNMENT &
AGENCY OBLIGATIONS
(Cost $31,756,901) ........................ 32,686,114
------------
CORPORATE BONDS -- 25.06%
2,000,000 American Express
Co. ..................... 6.50 8/01/00 2,016,388
2,625,000 Associates Corp. of
North America,
Series F ............... 6.31 6/16/00 2,629,869
1,890,000 CIT Group
Holdings ............... 6.80 4/17/00 1,923,521
750,000 Caterpillar, Inc. ...... 9.38 7/15/01 823,047
1,500,000 Coca Cola
Enterprises, Inc. ...... 7.00 10/01/26 1,563,942
1,000,000 +Goldman Sachs
Group .................. 6.60 7/15/02 1,005,962
2,340,000 First Union Corp. ...... 8.00 11/15/02 2,492,521
1,065,000 Korea Development
Bank .................. 7.13 9/17/01 1,070,570
------------
TOTAL CORPORATE BONDS
(Cost $13,393,437) ........................ 13,525,820
------------
<PAGE>
Principal Coupon Maturity
Amount Rate Date Value
- ------------ -------- ---------- ------------
ASSET BACKED SECURITIES -- 12.01%
$ 840,000 AT&T Universal
Card Master Trust,
Series 95-2, Class A ..... 5.95% 10/17/02 $ 837,488
2,078,000 Chase Manhattan
Credit Card Master
Trust, Series 96-3,
Class A .................. 7.04 2/15/05 2,140,573
1,260,000 Citibank Credit
Card Master Trust I,
Series 97-7, Class A ..... 6.35 8/15/02 1,266,645
2,214,000 ContiMortgage
Home Equity Loan
Trust, Series 97-3,
Class A4 .................. 6.82 5/15/12 2,238,708
------------
TOTAL ASSET BACKED SECURITIES
(Cost $6,401,762) ........................... 6,483,414
------------
Shares
----------
SHORT-TERM INVESTMENTS -- 1.49%
401,994 Dreyfus Government Cash
Management Fund ........................... 401,994
400,481 Fidelity U.S. Treasury II
Fund ....................................... 400,481
------------
TOTAL SHORT-TERM
INVESTMENTS
(Cost $802,475) .............................. 802,475
------------
TOTAL INVESTMENTS
(Cost $52,354,575) .............................. 99.12% $53,497,823
OTHER ASSETS AND
LIABILITIES (NET) .............................. 0.88 472,296
-------- ------------
NET ASSETS ....................................... 100.00% $53,970,119
======== ============
- ------------
+ 144A Security - certain conditions for public sale may exist.
See Notes to Financial Statements.
<PAGE>
Excelsior Institutional Trust
Schedule of Investments
September 30, 1997 (Unaudited)
Total Return Bond Fund
Principal Coupon Maturity
Amount Rate Date Value
- ------------- -------- ---------- ------------
U.S. GOVERNMENT & AGENCY
OBLIGATIONS -- 37.00%
Government National
Mortgage Association
$ 34,429 Pool #356873 ...... 6.50% 5/15/23 $ 33,655
2,227,502 Pool #80093 ...... 5.50 7/20/27 2,217,901
33,129,000 U.S. Treasury Bonds 7.25 5/15/16 35,976,040
12,620,000 U.S. Treasury Notes 5.25 1/31/01 12,375,487
3,414,000 U.S. Treasury Notes 5.75 8/15/03 3,361,725
1,706,731 U.S. Treasury Notes
(Inflation Indexed) 3.38 1/15/07 1,674,730
------------
TOTAL U.S. GOVERNMENT &
AGENCY OBLIGATIONS
(Cost $53,773,166) ..................... 55,639,538
------------
CORPORATE BONDS -- 35.17%
3,925,000 American Express Co. 6.50 8/01/00 3,957,161
2,570,000 Amgen, Inc. ...... 8.13 4/01/69 2,819,930
3,955,000 Associates Corp. of
North America,
Series 1 ......... 7.11 7/16/01 4,046,954
2,420,000 Bellsouth Capital
Funding ......... 7.12 7/15/69 2,438,109
5,205,000 CIT Group
Holdings ......... 6.80 4/17/00 5,297,316
3,965,000 Citicorp, Series C 7.00 7/01/07 4,063,352
3,470,000 Coca Cola .........
Enterprises, Inc. .. 7.00 10/01/26 3,617,919
5,360,000 First Union Corp. ... 8.00 11/15/02 5,709,365
5,575,000 Ford Motor
Credit Co. ...... 6.25 11/08/00 5,575,452
5,250,000 +Goldman Sachs
Group ............ 6.60 7/15/02 5,281,300
3,040,000 Korea Development
Bank ............ 7.13 9/17/01 3,055,899
1,517,000 Merrill Lynch &
Co., Inc. ......... 6.64 9/19/02 1,529,473
5,140,000 Nationsbank Corp. ... 8.13 6/15/02 5,486,014
------------
TOTAL CORPORATE BONDS
(Cost $52,326,634) ..................... 52,878,244
------------
ASSET BACKED SECURITIES -- 18.37%
6,580,000 +AESOP Funding II,
Series 97-1, Class A2 6.40 10/20/03 6,597,963
2,335,000 AT&T Universal
Card Master Trust,
Series 95-2, Class A 5.95 10/17/02 2,328,018
7,120,000 Chase Manhattan
Credit Card Master
Trust, Series 96-3,
Class A ............ 7.04 2/15/05 7,334,398
<PAGE>
Principal Coupon Maturity
Amount Rate Date Value
- ------------ -------- --------- -------------
ASSET BACKED SECURITIES -- (continued)
$3,510,000 Citibank Credit
Card Master Trust I,
Series 97-7, Class A . 6.35% 8/15/02 $ 3,528,510
3,290,000 ContiMortgage
Home Equity Loan
Trust, Series 97-3,
Class A4 ............ 6.82 5/15/12 3,326,716
2,255,000 The Money Store
Home Equity Trust,
Series 97-C, Class
AF3 ............... 6.31 8/15/12 2,255,000
2,255,000 The Money Store
Home Equity Trust,
Series 97-C, Class
AF5 ............... 6.31 6/15/21 2,255,000
-------------
TOTAL ASSET BACKED
SECURITIES (Cost $27,379,466) ......... 27,625,605
-------------
REPURCHASE AGREEMENT -- 8.06%
12,122,000 Agreement with Fuji Securities, Inc.,
6.20%, dated 9/30/97, due 10/01/97,
to be repurchased at $12,124,088, col-
lateralized by $9,097,220 Federal Home
Loan Bank Discount Notes, due
12/26/97, valued at $8,972,134, and
$3,496,971 Federal National Mortgage
Association Discount Notes, due
3/30/98, valued at $3,400,805
(Cost $12,122,000) ..................... 12,122,000
-------------
Shares
----------
OTHER SHORT-TERM INVESTMENTS -- 0.48%
455,461 Dreyfus Government Cash
Management Fund ..................... 455,461
266,011 Fidelity U.S. Treasury II
Fund ................................. 266,011
-------------
TOTAL OTHER SHORT-TERM
INVESTMENTS
(Cost $721,472) ........................ 721,472
-------------
TOTAL INVESTMENTS
(Cost $146,322,738) ..................... 99.08% $148,986,859
OTHER ASSETS AND
LIABILITIES (NET) ........................ 0.92 1,380,171
------- -------------
NET ASSETS ................................. 100.00% $150,367,030
======= =============
- ------------
+ 144A Security - certain conditions for public sale may exist.
See Notes to Financial Statements.
<PAGE>
Excelsior Institutional Trust
Schedule of Investments
September 30, 1997 (Unaudited)
Balanced Fund
Shares Value
- -------------- ------------
COMMON STOCKS -- 59.20%
FINANCIAL -- 11.01%
13,500 Allstate Corp. ..................... $1,085,062
10,000 Bankers Trust New York Corp. ...... 1,225,000
33,000 Comdisco, Inc. ..................... 1,074,562
18,000 Exel Ltd. ........................... 1,072,125
23,000 Federal National Mortgage
Association ....................... 1,081,000
40,000 Ocwen Assest Investment Corp. ...... 915,000
22,000 PNC Bank Corp. ..................... 1,073,875
20,000 Safeco Corp. ........................ 1,057,500
17,000 TCF Financial Corp. ............... 993,438
30,000 TIG Holdings, Inc. .................. 1,044,375
30,000 Washington Federal, Inc. ............ 885,000
------------
11,506,937
------------
CONSUMER CYCLICAL -- 8.66%
60,000 Clayton Homes, Inc. ............... 1,113,750
23,000 Dillard's, Inc., Class A ............ 1,007,687
12,000 Eaton Corp. ........................ 1,108,500
22,000 Elcor Corp. ........................ 702,625
23,000 Ford Motor Co. ..................... 1,040,750
15,000 General Motors Corp. ............... 1,004,063
15,000 Goodyear Tire & Rubber Co. ......... 1,031,250
18,000 J.C. Penney Co. ..................... 1,048,500
30,000 Standard Register Co. ............... 999,375
------------
9,056,500
------------
RAW/INTERMEDIATE
MATERIALS -- 8.57%
21,000 Arco Chemical Co. .................. 955,500
35,000 British Steel ADR .................. 1,019,375
22,500 Caraustar Industries, Inc. ......... 765,000
35,000 +Gradall Industries, Inc. ............ 520,625
30,675 Hanna (M.A.) Co. .................. 814,805
51,071 Millenium Chemicals Inc. ............ 1,123,562
27,000 Quanex Corp. ........................ 946,687
15,000 Union Camp Corp. .................. 925,313
17,000 Weyerhaeuser Co. .................. 1,009,375
23,000 Willamette Industries, Inc. ......... 879,750
------------
8,959,992
------------
ENERGY -- 6.93%
12,500 Atlantic Richfield Co. ............ 1,067,969
39,000 +Belco Oil & Gas Corp. ............... 850,688
70,000 Chesapeake Energy Corp. ............ 796,250
45,000 Occidental Petroleum Corp. ......... 1,167,187
25,000 Repsol S.A. ADR ..................... 1,084,375
34,000 Ultramar Diamond
Shamrock Corp. .................... 1,098,625
32,000 YPF S.A. ADR ........................ 1,180,000
------------
7,245,094
------------
<PAGE>
Shares Value
- -------------- ------------
COMMON STOCKS--(continued)
CONSUMER STAPLES -- 5.06%
31,000 Allergan, Inc. ..................... $1,121,813
27,000 American Greetings Corp.,
Class A .......................... 992,250
43,000 Archer-Daniels-Midland Co. ......... 1,029,312
16,000 +Genentech, Inc. ..................... 930,000
34,000 +The SABRE Group Holdings, Inc. . 1,217,625
------------
5,291,000
------------
CAPITAL GOODS -- 4.77%
34,000 AGCO Corp. ........................ 1,077,375
13,000 Cummins Engine Co., Inc. ............ 1,014,812
55,000 +Griffon Corp. ..................... 893,750
42,000 +Gulfstream Aerospace Corp. ......... 1,218,000
14,000 Tecumseh Products, Class A ......... 777,875
------------
4,981,812
------------
TECHNOLOGY -- 4.52%
20,000 Intel Corp. ........................ 1,847,500
21,000 +Marshall Industries ............... 813,750
40,000 +Read-Rite Corp. ..................... 972,500
13,000 Xerox Corp. ........................ 1,094,437
------------
4,728,187
------------
TRANSPORTATION -- 4.03%
9,500 +AMR Corp. ........................... 1,051,531
10,168 Delta Air Lines, Inc. ............... 957,699
16,000 GATX Corp. ........................ 1,081,000
40,000 Knightsbridge Tankers Ltd. ......... 1,120,000
------------
4,210,230
------------
UTILITIES -- 3.83%
17,860 El Paso Natural Gas Co. ............ 1,081,646
24,500 Enron Corp. ........................ 943,250
110,000 NOVA Corp. ........................ 921,250
45,000 PECO Energy Co. ..................... 1,054,688
------------
4,000,834
------------
REAL ESTATE INVESTMENT TRUST -- 1.82%
27,000 Cali Realty Corp. .................. 1,123,875
50,000 Prime Retail, Inc. .................. 781,250
------------
1,905,125
------------
TOTAL COMMON STOCKS
(Cost $42,931,574) .................. 61,885,711
------------
See Notes to Financial Statements.
<PAGE>
Excelsior Institutional Trust
Schedule of Investments
September 30, 1997 (Unaudited)
Balanced Fund -- (continued)
Principal
Amount Value
- -------------------------- ------------
CORPORATE BONDS -- 17.66%
FINANCIAL -- 6.85%
$ 750,000 American General Corp. 7.75%,
04/01/05 ........................ $ 793,364
463,000 Chevron Capital USA, Inc. 7.45%,
8/15/04 ........................ 477,750
750,000 Ford Motor Credit Co. 7.00%,
9/25/01 ........................ 767,134
500,000 Ford Motor Credit Co. 7.57%,
5/16/05 ........................ 514,339
1,250,000 General Motors Acceptance Corp.
6.75%, 6/10/02 .................. 1,265,617
950,000 Merrill Lynch & Co. 7.15%,
7/30/12 ........................ 965,799
1,310,000 Safeco Corp. 7.875%, 4/01/05 ..... 1,377,747
1,000,000 Transamerica Corp. 6.75%,
11/15/06 ........................ 996,039
------------
7,157,789
------------
CONSUMER STAPLES -- 4.45%
1,575,000 Anheuser Busch Co., Inc. 7.10%,
6/15/07 ........................ 1,613,318
1,300,000 Campbell Soup Co. 8.75%,
3/13/01 ........................ 1,318,473
750,000 Columbia/HCA Healthcare Corp.
6.87%, 9/15/03 .................. 738,602
500,000 McDonald's Corp. 7.375%,
7/15/02 ........................ 513,288
450,000 Tenneco, Inc. 7.50%, 4/15/07 .... 472,547
------------
4,656,228
------------
RAW/INTERMEDIATE
MATERIALS -- 4.03%
750,000 International Paper Co. 7.00%,
6/01/01 ........................ 763,554
500,000 Reynolds Metals 9.40%,
2/15/05 ........................ 576,017
750,000 Reynolds Metals 8.90%,
9/20/06 ........................ 852,577
2,000,000 SmithKline Beecham 7.50%,
5/01/02 ........................ 2,021,682
------------
4,213,830
------------
UTILITIES -- 1.33%
575,000 Alabama Power Co. 7.00%,
1/01/03 ........................ 579,154
775,000 AT&T Corp. 8.20%, 2/15/05 ....... 809,955
------------
1,389,109
------------
<PAGE>
Principal
Amount Value
- -------------------------- ------------
CORPORATE BONDS--(continued)
ENERGY -- 1.00%
$1,000,000 Occidental Petroleum 8.50%,
9/15/04 ........................ $ 1,042,450
------------
TOTAL CORPORATE BONDS
(Cost $18,335,901) ............... 18,459,406
------------
U.S. GOVERNMENT & AGENCY
OBLIGATIONS -- 18.18%
Federal National Mortgage
Association
750,000 7.65%, 3/10/05 .................. 807,833
500,000 8.00%, 6/15/06 .................. 508,552
1,550,000 7.50%, 4/16/07 .................. 1,613,553
------------
2,929,938
------------
Financial Assistance Corp.
1,000,000 9.20%, 9/27/05 .................. 1,110,734
------------
Student Loan Marketing
Association
500,000 6.40%, 2/18/00 .................. 499,449
------------
U.S. Treasury Bonds
1,000,000 8.25%, 5/15/05 .................. 1,051,563
1,650,000 9.125%, 5/15/09 .................. 1,906,781
1,050,000 7.50%, 11/15/16 .................. 1,168,125
------------
4,126,469
------------
U.S. Treasury Notes
750,000 6.375%, 4/30/99 .................. 756,798
1,000,000 7.75%, 11/30/99 .................. 1,038,125
750,000 5.50%, 12/31/00 .................. 740,625
750,000 6.50%, 5/31/01 .................. 763,125
1,250,000 6.625%, 7/31/01 .................. 1,277,735
500,000 7.875%, 8/15/01 .................. 532,344
775,000 6.125%, 12/31/01 ............... 778,875
750,000 6.625%, 3/31/02 .................. 768,047
750,000 5.75%, 8/15/03 .................. 738,516
1,025,000 7.25%, 8/15/04 .................. 1,090,344
750,000 7.50%, 2/15/05 .................. 810,000
1,000,000 6.875%, 5/15/06 .................. 1,045,625
------------
10,340,159
------------
TOTAL U.S. GOVERNMENT &
AGENCY OBLIGATIONS
(Cost $18,756,968) ............... 19,006,749
------------
See Notes to Financial Statements.
<PAGE>
Excelsior Institutional Trust
Schedule of Investments
September 30, 1997 (Unaudited)
Balanced Fund -- (continued)
Principal
Amount Value
- --------------- -----------
DEMAND NOTES -- 3.64%
$1,700,000 Associates Corp. of North America
Master Notes .................. $1,700,000
2,109,000 General Electric Co. Promissory
Notes ........................ 2,109,000
-----------
TOTAL DEMAND NOTES
(Cost $3,809,000) ............... 3,809,000
-----------
TOTAL INVESTMENTS
(Cost $83,833,443) ................ 98.68% $103,160,866
OTHER ASSETS AND
LIABILITIES (NET) ................ 1.32 1,378,322
------- -------------
NET ASSETS ......................... 100.00% $104,539,188
======= =============
- ------------
+ Non-income producing security.
ADR -- American Depositary Receipt.
See Notes to Financial Statements.
<PAGE>
Excelsior Institutional Trust
Schedule of Investments
September 30, 1997 (Unaudited)
International Equity Fund
Shares Value
- ------------- ------------
COMMON STOCKS--90.30%
JAPAN -- 17.50%
87,000 +Atlantis Japan Growth Fund Ltd. . $ 487,200
57,000 Canon, Inc. ........................ 1,667,026
17,000 Hirose Electric ..................... 1,252,113
30,000 Honda Motor Co. ..................... 1,046,396
42,000 Kurita Water Industries, Ltd. ...... 838,608
85,000 Mitsubishi Corp. .................. 823,944
200,000 Mitsubishi Heavy Industries Ltd. . 1,095,277
56,000 Denso Co. ........................... 1,359,403
50,000 Tokio Marine & Fire Insurance
Co. .............................. 600,663
------------
9,170,630
------------
SWITZERLAND--12.15%
7,000 ABB AG (Registered) ............... 1,949,794
25,000 Nestle S.A. ADR (Registered) ...... 1,743,817
850 Novartis AG (Registered) ............ 1,303,645
4,100 SGS Holdings S.A. .................. 1,367,607
------------
6,364,863
------------
NETHERLANDS--11.48%
18,000 IHC Caland N.V. ..................... 1,135,062
24,000 ING Groep N.V. ..................... 1,102,201
45,000 Royal Dutch Petroleum Co. ......... 2,497,500
9,500 Wolters Kluwer N.V. ............... 1,281,177
------------
6,015,940
------------
GERMANY--8.86%
40,000 Bayer AG ........................... 1,591,398
14,000 Daimler-Benz AG ..................... 1,156,366
27,000 Deutsche Bank AG .................. 1,894,737
------------
4,642,501
------------
UNITED KINGDOM--8.69%
85,000 Railtrack Group plc ............... 1,232,511
420,000 Rentokil Initial plc ............... 1,734,305
100,000 Rio Tinto plc (Registered) ......... 1,587,199
------------
4,554,015
------------
HONG KONG--5.76%
200,000 Hutchison Whampoa Ltd. ............ 1,970,921
384,000 Johnson Electric Holdings Ltd. ...... 1,047,160
------------
3,018,081
------------
<PAGE>
Shares Value
- ------------- ------------
COMMON STOCKS--(continued)
FRANCE--4.88%
2,500 Financiere et Industrielle Gaz et
Eaux .............................. $ 1,023,934
27,000 Michelin, Class B .................. 1,533,626
------------
2,557,560
------------
SWEDEN--4.09%
40,000 Investor AB, Class B ............... 2,141,068
------------
SPAIN--3.30%
30,000 Banco Intercontinental Espana ...... 1,728,991
------------
SINGAPORE--3.05%
150,000 Acer Computer International Ltd. 282,000
234,000 Courts Singapore Ltd. ............... 171,406
108,000 Development Bank of Singapore
Ltd. .............................. 1,101,897
2,000 +Singapore Sesdaq Fund Ltd. ......... 41,750
------------
1,597,053
------------
NORWAY--2.28%
20,000 Norsk Hydro AS ADR .................. 1,196,250
------------
CANADA--2.19%
20,000 Imperial Oil Ltd. .................. 1,150,000
------------
SOUTH AFRICA--1.69%
258,218 LibLife Strategic Investments Ltd. 886,776
------------
BERMUDA--1.31%
16,000 PartnerRe Holdings Ltd. ............ 689,000
------------
THAILAND--1.10%
35,000 The Siam Cement Co., Ltd. ......... 576,243
------------
ARGENTINA--1.07%
40,000 Quilmes Industrial S.A. ............ 560,000
------------
MALAYSIA--0.90%
80,000 Nestle Bhd. ........................ 471,532
------------
TOTAL COMMON STOCKS
(Cost $40,831,549) .................. 47,320,503
------------
See Notes to Financial Statements.
<PAGE>
Excelsior Institutional Trust
Schedule of Investments
September 30, 1997 (Unaudited)
International Equity Fund -- (continued)
Principal
Amount Value
- -------------- -----------
CORPORATE OBLIGATIONS -- 1.99%
THAILAND -- 1.16%
$1,000,000 Bangkok Bank Public Co.
(Convertible) 3.25%, 3/03/04 ...... $ 610,000
-----------
SINGAPORE -- 0.83%
500,000 Far East Levingston Shipping
1.50%, 5/02/01 ..................... 431,875
-----------
TOTAL CORPORATE
OBLIGATIONS
(Cost $1,454,489) .................. 1,041,875
-----------
No. of
Warrants
- -------------
WARRANTS -- 0.03%
SINGAPORE -- 0.02%
20,000 +Acer Computer International Ltd.,
expiring 7/31/01 .................. 10,900
-----------
JAPAN -- 0.01%
13,000 +Atlantis Japan Growth Fund Ltd.,
expiring 4/30/01 .................. 5,200
-----------
TOTAL WARRANTS
(Cost $17,787) ..................... 16,100
-----------
Principal
Amount
- -------------
DEMAND NOTES -- 7.96%
$1,930,000 Associates Corp. of North America
Master Notes ..................... 1,930,000
2,239,000 General Electric Co. Promissory
Notes .............................. 2,239,000
-----------
TOTAL DEMAND NOTES
(Cost $4,169,000) .................. 4,169,000
-----------
TOTAL INVESTMENTS
(Cost $46,472,825) .................... 100.28% $52,547,478
OTHER ASSETS AND
LIABILITIES (NET) .................... (0.28) (146,154)
------- -----------
NET ASSETS ............................. 100.00% $52,401,324
======= ===========
- ------------
+ Non-income producing security.
ADR -- American Depositary Receipt.
<PAGE>
At September 30, 1997, sector diversification of the Fund's investment
portfolio was as follows:
% of
Net Market
Sector Diversification Assets Value
- ----------------------- ------- -----------
Financial ........................ 22.90% $12,000,069
Consumer Cyclical ............... 17.38 9,109,513
Consumer Staples .................. 12.29 6,438,133
Capital Goods ..................... 10.25 5,373,380
Energy ........................... 8.03 4,207,500
Demand Notes ..................... 7.96 4,169,000
Raw/Intermediate Materials ...... 7.17 3,754,840
Transportation .................. 5.27 2,763,187
Investment Companies ............ 4.77 2,499,871
Technology ........................ 2.63 1,377,277
Utilities ........................ 1.60 838,608
Warrants ........................ 0.03 16,100
------- -----------
Total Investments ............... 100.28% $52,547,478
Other Assets and Liabilities (Net) (0.28) (146,154)
------- -----------
Net Assets ..................... 100.00% $52,401,324
======= ===========
See Notes to Financial Statements.
<PAGE>
Excelsior Institutional Trust
Schedule of Investments
September 30, 1997 (Unaudited)
Optimum Growth Fund
Shares Value
- ------------- ------------
COMMON STOCKS -- 98.89%
CONSUMER STAPLES -- 26.02%
5,300 Abbott Laboratories ............ $ 338,869
3,100 American Home Products Corp. .... 226,300
4,000 Bristol-Meyers Squibb Co. ...... 331,000
20,000 Coca Cola Co. .................. 1,218,750
3,000 ConAgra, Inc. .................. 198,000
4,000 CPC International, Inc. ......... 370,500
3,000 Eli Lilly & Co. .................. 361,313
5,000 General Mills, Inc. ............ 344,688
15,000 Gillette Co. ..................... 1,294,687
3,500 H.J. Heinz Co. .................. 161,656
3,100 International Flavors &
Fragrances, Inc. .............. 151,900
10,000 Johnson & Johnson ............... 576,250
8,600 Kellogg Co. ..................... 362,275
10,000 Merck & Co., Inc. ............... 999,375
12,400 PepsiCo, Inc. .................. 502,975
22,000 Pfizer, Inc. ..................... 1,321,375
21,300 Philip Morris Companies, Inc. ... 885,281
7,800 Procter & Gamble Co. ............ 538,687
6,000 Sara Lee Corp. .................. 309,000
5,200 Schering-Plough Corp. ............ 267,800
3,000 Tootsie Roll Industries, Inc. ... 152,250
8,000 Winn-Dixie Stores, Inc. ......... 283,500
4,000 Wrigley (WM.) Jr. Co. ............ 301,250
-----------
11,497,681
-----------
TECHNOLOGY -- 25.29%
15,000 +America Online, Inc. ............ 1,131,563
21,000 +Cisco Systems, Inc. ............ 1,534,312
20,000 +Dell Computer Corp. ............ 1,936,250
22,000 +EMC Corp. ........................ 1,284,250
22,000 Intel Corp. ..................... 2,032,250
25,000 Medtronic, Inc. .................. 1,175,000
12,000 +Microsoft Corp. .................. 1,587,750
2,000 Motorola, Inc. .................. 143,750
4,000 +Western Atlas, Inc. ............ 352,000
-----------
11,177,125
-----------
FINANCIAL -- 17.60%
12,000 American International Group,
Inc. ............................. 1,238,250
37,500 Charles Schwab Corp. ............ 1,340,625
11,000 Citicorp ........................ 1,473,312
23,000 Federal National Mortgage
Association .................... 1,081,000
<PAGE>
Shares Value
- ------------- ------------
COMMON STOCKS -- (continued)
FINANCIAL -- (continued)
27,000 First Data Corp. ............... $ 1,014,188
22,000 Merrill Lynch & Co., Inc. ...... 1,632,125
-----------
7,779,500
-----------
CONSUMER CYCLICAL -- 14.92%
45,000 +CUC International, Inc. ......... 1,395,000
6,000 Hannaford Brothers Co. ......... 213,375
25,500 Home Depot, Inc. ............... 1,329,187
3,000 Marriott International, Inc. ... 213,188
5,000 McDonald's Corp. ............... 238,125
16,000 Nike, Inc., Class B ............ 848,000
7,000 +Quintiles Transnational Corp. ... 588,875
4,500 Time Warner, Inc. ............... 243,844
10,000 Wal-Mart Stores, Inc. ............ 366,250
11,000 Walt Disney Co. .................. 886,875
600 Washington Post Co., Class B ... 268,875
-----------
6,591,594
-----------
TELECOMMUNICATIONS -- 6.45%
4,500 +AirTouch Communications, Inc. ... 159,469
2,900 Ameritech Corp. .................. 192,850
22,000 +Ascend Communications, Inc. ...... 710,875
3,600 GTE Corp. ........................ 163,350
3,662 Lucent Technologies, Inc. ...... 297,995
3,500 +Tele-Communications, Inc.,
Class A ....................... 71,531
23,000 +Tellabs, Inc. .................. 1,184,500
2,000 +WorldCom, Inc. .................. 70,625
-----------
2,851,195
-----------
CAPITAL GOODS -- 3.40%
2,000 Camco International, Inc. ...... 139,500
20,000 General Electric Co. ............ 1,361,250
-----------
1,500,750
-----------
TRANSPORTATION -- 2.85%
6,000 Boeing Co. ..................... 326,625
32,000 Harley-Davidson, Inc. ............ 934,000
-----------
1,260,625
-----------
ENERGY -- 1.27%
3,000 Halliburton Co. .................. 156,000
5,000 Phillips Petroleum Co. ......... 258,125
3,500 Vastar Resources, Inc. ......... 146,344
-----------
560,469
-----------
See Notes to Financial Statements.
<PAGE>
Excelsior Institutional Trust
Schedule of Investments
September 30, 1997 (Unaudited)
Optimum Growth Fund -- (continued)
Shares Value
- ------------- ------------
COMMON STOCKS -- (continued)
RAW/INTERMEDIATE
MATERIALS -- 1.09%
2,300 Dow Chemical Co. ................ $ 208,581
8,000 Sonoco Products Co. ............. 271,500
-----------
480,081
-----------
TOTAL COMMON STOCKS
(Cost $32,245,546) ............... 43,699,020
-----------
Principal
Amount Value
- ----------- ------------
DEMAND NOTES -- 1.80%
$ 11,000 Associates Corp. of North America
Master Notes ................... $ 11,000
786,000 General Electric Co. Promissory
Notes ......................... 786,000
-----------
TOTAL DEMAND NOTES
(Cost $797,000) ................ 797,000
-----------
TOTAL INVESTMENTS
(Cost $33,042,546) .................. 100.69% $44,496,020
OTHER ASSETS AND
LIABILITIES (NET) .................. (0.69) (305,285)
------- -----------
NET ASSETS ........................... 100.00% $44,190,735
======= ===========
- ------------
+ Non-income producing security.
See Notes to Financial Statements.
<PAGE>
Excelsior Institutional Trust
Schedule of Investments
September 30, 1997 (Unaudited)
Value Equity Fund
Shares Value
- ------------- ------------
COMMON STOCKS -- 99.93%
CONSUMER STAPLES -- 26.52%
10,500 Avon Products, Inc. ............ $ 651,000
15,000 Bristol-Meyers Squibb Co. ...... 1,241,250
10,000 CPC International, Inc. ......... 926,250
12,000 Eastman Kodak Co. ............... 779,250
20,625 Fort James Corp. ............... 944,883
9,500 General Mills, Inc. ............ 654,906
21,000 Philip Morris Companies, Inc. ... 872,813
90,500 Styling Technology Corp. ......... 1,357,500
30,000 Sunbeam Corp., Inc. ............ 1,331,250
------------
8,759,102
------------
TECHNOLOGY--21.87%
20,000 +Bell & Howell Co. ............... 648,750
12,000 International Business Machines
Corp. ........................... 1,271,250
14,000 Motorola, Inc. .................. 1,006,250
17,000 Nokia Corp., Class A ADR ......... 1,594,813
8,000 +QUALCOMM, Inc. .................. 509,000
11,000 Raychem Corp. .................. 929,500
15,000 Xerox Corp. ..................... 1,262,812
------------
7,222,375
------------
FINANCIAL--20.33%
41,000 +Amerin Corp. ..................... 1,171,062
40,000 +Bank Plus Corp. .................. 510,000
8,500 Chase Manhattan Corp. ............ 1,003,000
7,000 J.P. Morgan & Co., Inc. ......... 795,375
15,000 Long Island Bancorp, Inc. ...... 705,000
15,000 Mid Ocean Ltd. .................. 950,625
15,000 NAC Re Corp. ..................... 770,625
20,000 Travelers Property Casualty Corp.,
Class A ........................ 810,000
------------
6,715,687
------------
CAPITAL GOODS--9.69%
26,000 +American Standard Companies,
Inc. ........................... 1,043,250
19,000 Boeing Co. ..................... 1,034,313
15,000 Chicago Bridge & Iron Co. ...... 311,250
30,000 Westinghouse Electric Corp. ...... 811,875
------------
3,200,688
------------
<PAGE>
Shares Value
- ------------- ------------
COMMON STOCKS -- (continued)
TRANSPORTATION--5.98%
30,000 +Hvide Marine, Inc., Class A ...... $ 956,250
34,000 +OMI Corp. ........................ 425,000
20,000 Ryanair Holdings plc ............ 595,000
------------
1,976,250
------------
CONSUMER CYCLICAL--5.53%
41,500 BridgeStreet Accommodations,
Inc. ........................... 466,875
21,000 Ford Motor Co. .................. 950,250
5,000 Tyco International Ltd. ......... 410,313
------------
1,827,438
------------
ENERGY--4.81%
9,000 Mobil Corp. ..................... 666,000
25,000 YPF S.A. ADR ..................... 921,875
------------
1,587,875
------------
UTILITY--2.79%
40,000 Frontier Corp. .................. 920,000
------------
RAW/INTERMEDIATE
MATERIALS--2.41%
17,000 Olin Corp. ..................... 795,812
------------
TOTAL COMMON STOCKS
(Cost $23,149,308) ............... 33,005,227
------------
TOTAL INVESTMENTS
(Cost $23,149,308) .................. 99.93% $33,005,227
OTHER ASSETS AND
LIABILITIES (NET) .................. 0.07 22,743
------- ------------
NET ASSETS ........................... 100.00% $33,027,970
======= ============
- ------------
+ Non-income producing security.
ADR -- American Depositary Receipt.
See Notes to Financial Statements.
<PAGE>
Excelsior Institutional Trust
Statements of Assets and Liabilities
September 30, 1997 (Unaudited)
<TABLE>
<CAPTION>
Total Return
Equity Income Bond
Fund Fund Fund
-------------- --------------- -------------
<S> <C> <C> <C>
Assets:
Investments, at cost -- see accompanying
Schedule of Investments ........................... $ 99,405,546 $ 52,354,575 $146,322,738
============= ============ =============
Investments in securities, at value (Note 1a) ...... $131,862,598 $ 53,497,823 $148,986,859
Cash ................................................ -- -- 3,121
Dividends and interest receivable .................. 179,745 769,044 2,365,563
Receivable for investment securities sold ......... 312,349 2,857 --
Receivable for fund shares sold ..................... 43,977 -- 27,297
Deferred organization expenses (Note 1f) ............ 2,415 2,604 2,916
Other assets ....................................... 5,312 214 685
------------- ------------ -------------
Total assets ....................................... 132,406,396 54,272,542 151,386,441
Liabilities:
Payable for investments purchased .................. 273,500 -- --
Dividends payable ................................. -- 266,418 725,795
Payable for fund shares redeemed .................. 127,663 -- 210,143
Investment advisory fees payable (Note 2a) ......... 46,944 10,614 29,853
Administration fees payable (Note 2b) ............... 15,054 6,511 18,926
Trustees fees and expenses payable (Note 2f) ...... 1,271 488 877
Due to custodian bank .............................. 7,484 -- --
Accrued expenses and other liabilities ............ 33,217 18,392 33,817
------------- ------------ -------------
Total liabilities ................................. 505,133 302,423 1,019,411
------------- ------------ -------------
Net Assets .......................................... $131,901,263 $ 53,970,119 $150,367,030
============= ============ =============
Net Assets Consist of:
Paid-in capital .................................... $ 87,129,009 $ 52,889,876 $146,904,843
Undistributed (distributions in excess of) net
investment income ................................. 43,563 (10,723) 28,473
Accumulated net realized gain (loss) on
investments ....................................... 12,271,639 (52,282) 769,593
Net unrealized appreciation of investments ......... 32,457,052 1,143,248 2,664,121
------------- ------------ -------------
Net Assets .......................................... $131,901,263 $ 53,970,119 $150,367,030
============= ============ =============
Shares outstanding (Unlimited number of
$0.00001 par value shares authorized for each
Fund) ............................................. 10,752,033 7,550,638 20,200,347
Net Asset Value Per Share (net assets / shares
outstanding) ....................................... $ 12.27 $ 7.15 $ 7.44
============= ============ =============
</TABLE>
See Notes to Financial Statements.
<PAGE>
Excelsior Institutional Trust
Statements of Assets and Liabilities -- (continued)
September 30, 1997 (Unaudited)
<TABLE>
<CAPTION>
International Optimum Value
Balanced Equity Growth Equity
Fund Fund Fund Fund
-------------- --------------- --------------- -------------
<S> <C> <C> <C> <C>
Assets:
Investments, at cost -- see accompanying Schedule of
Investments ............................................. $ 83,833,443 $ 46,472,825 $ 33,042,546 $ 23,149,308
============= ============ ============ =============
Investments in securities, at value (Note 1a) ............ $103,160,866 $ 52,547,478 $ 44,496,020 $ 33,005,227
Cash ...................................................... 6,329 -- 176 --
Dividends and interest receivable ........................ 814,243 221,627 39,820 43,474
Receivable for investment securities sold ............... 858,823 -- -- 111,608
Receivable for fund shares sold ........................... 46,916 4,642 654 107
Foreign withholding tax receivable ........................ -- 34,500
Deferred organization expenses (Note 1f) .................. 11,025 2,047 891 891
Other assets ............................................. 1,294 853 224 184
------------- ------------ ------------ -------------
Total assets ............................................. 104,899,496 52,811,147 44,537,785 33,161,491
Liabilities:
Payable for investments purchased ........................ -- 95,662 -- 64,027
Payable for fund shares redeemed ........................ 270,547 242,117 314,548 --
Investment advisory fees payable (Note 2a) ............... 39,677 21,000 13,340 8,787
Administration fees payable (Note 2b) ..................... 18,583 16,007 5,395 3,963
Trustees fees and expenses payable (Note 2f) ............ 821 309 246 212
Due to custodian bank .................................... -- 10,191 -- 50,929
Accrued expenses and other liabilities .................. 30,680 24,537 13,521 5,603
------------- ------------ ------------ -------------
Total liabilities ....................................... 360,308 409,823 347,050 133,521
------------- ------------ ------------ -------------
Net Assets ................................................ $104,539,188 $ 52,401,324 $ 44,190,735 $ 33,027,970
============= ============ ============ =============
Net Assets Consist of:
Paid-in capital .......................................... $ 76,407,599 $ 46,073,617 $ 34,506,361 $ 27,994,289
Undistributed (distributions in excess of) net investment
income ................................................... 53,056 (82,457) 5,107 1,583
Accumulated net realized gain (loss) on investments ...... 8,751,110 338,397 (1,774,207) 1,176,179
Net unrealized appreciation of investments ............... 19,327,423 6,071,767 11,453,474 9,855,919
------------- ------------ ------------ -------------
Net Assets ................................................ $104,539,188 $ 52,401,324 $ 44,190,735 $ 33,027,970
============= ============ ============ =============
Net Assets:
Institutional Shares .................................... $ 84,740,132 $ 52,401,324 $ 38,465,842 $ 32,934,191
Trust Shares ............................................. 19,799,056 -- 5,724,893 93,779
Shares outstanding (Unlimited number of $0.00001 par
value shares authorized for each Fund):
Institutional Shares .................................... 8,785,109 5,417,223 2,883,102 2,162,531
Trust Shares ............................................. 2,052,649 -- 429,336 6,157
Net Asset Value Per Share (net assets / shares outstanding):
Institutional Shares .................................... $ 9.65 $ 9.67 $ 13.34 $ 15.23
============= ============ ============ =============
Trust Shares ............................................. $ 9.65 -- $ 13.33 $ 15.23
============= ============ ============ =============
</TABLE>
See Notes to Financial Statements.
<PAGE>
Excelsior Institutional Trust
Statements of Operations
For the Six Months Ended September 30, 1997 (Unaudited)
<TABLE>
<CAPTION>
Total Return
Equity Income Bond
Fund Fund Fund
--------------- -------------- ---------------
<S> <C> <C> <C>
Investment Income
Dividend income ..................... $ 791,335 $ -- $ --
Interest income ..................... 38,632 1,753,204 4,767,856
Less: Foreign taxes withheld ...... -- -- --
------------ ----------- ------------
Total Income ..................... 829,967 1,753,204 4,767,856
Expenses (Note 1g):
Investment advisory fees
(Note 2a) ........................ 417,606 167,219 475,246
Administrative fees (Note 2b) ...... 98,298 39,361 111,866
Custodian fees ..................... 20,388 9,160 22,390
Legal fees ........................ 17,123 7,017 19,268
Prospectus and shareholder
reports ........................... 7,275 3,050 8,258
Trustees' fees and expenses
(Note 2f) ........................ 3,922 1,594 4,285
Auditing fees ..................... 3,745 2,489 3,916
Transfer agent fees ............... 2,172 3,744 3,833
Insurance expense .................. 1,581 1,559 4,445
Registration fees .................. 1,070 455 1,265
Amortization of organization
expenses (Note 1f) ............... 619 871 724
Distribution fees -- Trust Shares
(Note 2e) ........................ -- -- --
Miscellaneous ..................... 402 561 1,831
------------ ----------- ------------
Total Expenses .................. 574,201 237,080 657,327
Less: Waiver of fees
(Note 2c) ..................... (124,471) (108,450) (290,666)
------------ ----------- ------------
Net Expenses ..................... 449,730 128,630 366,661
------------ ----------- ------------
Net Investment Income ............... 380,237 1,624,574 4,401,195
------------ ----------- ------------
Realized and Unrealized Gain (Loss)
(Note 3):
Net realized gain (loss) on
investments ........................ 7,241,499 (235,432) 303,338
Net realized loss on foreign
currency transactions ............... -- -- --
Net change in unrealized
appreciation/depreciation of
investments during the
period (a) ........................ 23,516,834 2,061,176 5,341,539
------------ ----------- ------------
Net Realized and Unrealized Gain ...... 30,758,333 1,825,744 5,644,877
------------ ----------- ------------
Net Increase in Net Assets Resulting
from Operations ..................... $ 31,138,570 $ 3,450,318 $ 10,046,072
============ =========== ============
------------
(a) Includes net unrealized
appreciation/depreciation of
foreign currency ................... -- -- --
(b) Excelsior Institutional Trust
began offering Trust Shares on
August 25, 1997 for the Balanced
Fund.
</TABLE>
<PAGE>
RESTUBBED TABLE
<TABLE>
<CAPTION>
International Optimum Value
Balanced Equity Growth Equity
Fund(b) Fund Fund Fund
--------------- --------------- -------------- -------------
<S> <C> <C> <C> <C>
Investment Income
Dividend income ..................... $ 686,325 $ 574,170 $ 177,254 $ 204,735
Interest income ..................... 1,452,994 136,852 14,232 2,730
Less: Foreign taxes withheld ...... -- (55,877) -- --
------------ ----------- ----------- -----------
Total Income ..................... 2,139,319 655,145 191,486 207,465
Expenses (Note 1g):
Investment advisory fees
(Note 2a) ........................ 322,507 236,424 125,729 93,809
Administrative fees (Note 2b) ...... 75,913 47,285 29,595 22,081
Custodian fees ..................... 15,526 38,882 7,046 6,210
Legal fees ........................ 13,497 5,645 4,533 3,520
Prospectus and shareholder
reports ........................... 6,008 2,511 3,100 3,714
Trustees' fees and expenses
(Note 2f) ........................ 2,922 1,218 1,005 779
Auditing fees ..................... 3,055 2,428 2,361 2,327
Transfer agent fees ............... 2,148 1,716 4,448 3,583
Insurance expense .................. 6,464 1,428 1,251 1,345
Registration fees .................. 575 440 7,803 7,304
Amortization of organization
expenses (Note 1f) ............... 2,849 604 123 123
Distribution fees -- Trust Shares
(Note 2e) ........................ 6,620 -- 7,902 117
Miscellaneous ..................... 378 1,282 629 644
------------ ----------- ----------- -----------
Total Expenses .................. 458,462 339,863 195,525 145,556
Less: Waiver of fees
(Note 2c) ..................... (104,526) (127,081) (52,222) (44,413)
------------ ----------- ----------- -----------
Net Expenses ..................... 353,936 212,782 143,303 101,143
------------ ----------- ----------- -----------
Net Investment Income ............... 1,785,383 442,363 48,183 106,322
------------ ----------- ----------- -----------
Realized and Unrealized Gain (Loss)
(Note 3):
Net realized gain (loss) on
investments ........................ 7,952,208 142,976 (969,740) 1,210,929
Net realized loss on foreign
currency transactions ............... -- (19,733) -- --
Net change in unrealized
appreciation/depreciation of
investments during the
period (a) ........................ 7,414,285 2,751,067 10,776,814 7,240,460
------------ ----------- ----------- -----------
Net Realized and Unrealized Gain ...... 15,366,493 2,874,310 9,807,074 8,451,389
------------ ----------- ----------- -----------
Net Increase in Net Assets Resulting
from Operations ..................... $ 17,151,876 $ 3,316,673 $ 9,855,257 $ 8,557,711
============ =========== =========== ===========
------------
(a) Includes net unrealized
appreciation/depreciation of
foreign currency ................... -- $ (2,886) -- --
(b) Excelsior Institutional Trust
began offering Trust Shares on
August 25, 1997 for the Balanced
Fund.
</TABLE>
See Notes to Financial Statements.
<PAGE>
Excelsior Institutional Trust
Statements of Changes in Net Assets
<TABLE>
<CAPTION>
Equity Fund
------------------------------------
Six Months
Ended Ten Months
September 30, Ended
1997 March 31,
(Unaudited) 1997 (b)
----------------- -----------------
<S> <C> <C>
Increase (Decrease) in Net Assets
from:
Operations:
Net investment income ............ $ 380,237 $ 709,198
Net realized gain (loss) on
investments ..................... 7,241,499 5,378,047
Net change in unrealized
appreciation/depreciation of
investments during the
period ........................ 23,516,834 6,409,437
------------- -------------
Net increase in net assets
resulting from operations ...... 31,138,570 12,496,682
Distributions to Shareholders:
From net investment income ...... (517,567) (608,037)
In excess of net investment
income ........................... -- --
From net realized gains ......... -- (1,774,938)
------------- -------------
Total distributions to
shareholders .................. (517,567) (2,382,975)
------------- -------------
Transactions in Shares of Beneficial
Interest:
Net proceeds from shares sold ... 9,004,613 28,801,841
Contribution in-kind ............ -- 100,714,496
Reinvestment of dividends ......... 53,365 46,531
Cost of shares redeemed ......... (26,339,729) (44,609,820)
------------- -------------
Net increase (decrease) in net
assets from beneficial
interest transactions ......... (17,281,751) 84,953,048
------------- -------------
Total Increase in Net Assets ...... 13,339,252 95,066,755
Net Assets:
Beginning of Period ............... 118,562,011 23,495,256
------------- -------------
End of Period (a) .................. $ 131,901,263 $ 118,562,011
============= =============
Capital Share Transactions:
Shares sold ..................... 800,957 3,042,701
Contribution in-kind ............ -- 11,211,157
Shares issued for dividend
reinvestment ..................... 4,808 4,908
Shares redeemed .................. (2,344,389) (4,598,732)
------------- -------------
Net Increase (Decrease) in Shares
Outstanding ..................... (1,538,624) 9,660,034
============= =============
------------
(a) Including undistributed
(distributions in excess of) net
investment income ............. $ 43,563 $ 180,893
(b) The Fund changed its fiscal
year end to March 31, 1997.
</TABLE>
<PAGE>
RESTUBBED TABLE
<TABLE>
<CAPTION>
Income Fund Total Return Bond Fund
---------------------------------- -----------------------------------
Six Months Six Months
Ended Ten Months Ended Ten Months
September 30, Ended September 30, Ended
1997 March 31, 1997 March 31,
(Unaudited) 1997 (b) (Unaudited) 1997 (b)
---------------- ---------------- ----------------- ----------------
<S> <C> <C> <C> <C>
Increase (Decrease) in Net Assets
from:
Operations:
Net investment income ............ $ 1,624,574 $ 2,452,838 $ 4,401,195 $ 6,642,608
Net realized gain (loss) on
investments ..................... (235,432) 221,976 303,338 892,647
Net change in unrealized
appreciation/depreciation of
investments during the
period ........................ 2,061,176 (473,993) 5,341,539 (1,699,077)
------------ ------------ ------------- -------------
Net increase in net assets
resulting from operations ...... 3,450,318 2,200,821 10,046,072 5,836,178
Distributions to Shareholders:
From net investment income ...... (1,624,574) (2,453,645) (4,401,195) (6,627,379)
In excess of net investment
income ........................... -- (10,723) -- --
From net realized gains ......... -- (562,577) -- (487,553)
------------ ------------ ------------- -------------
Total distributions to
shareholders .................. (1,624,574) (3,026,945) (4,401,195) (7,114,932)
------------ ------------ ------------- -------------
Transactions in Shares of Beneficial
Interest:
Net proceeds from shares sold ... 4,986,975 35,338,940 24,554,454 39,912,748
Contribution in-kind ............ -- -- -- 77,792,503
Reinvestment of dividends ......... -- -- 82,092 96,057
Cost of shares redeemed ......... (3,924,864) (7,431,851) (18,316,738) (43,137,691)
------------ ------------ ------------- -------------
Net increase (decrease) in net
assets from beneficial
interest transactions ......... 1,062,111 27,907,089 6,319,808 74,663,617
------------ ------------ ------------- -------------
Total Increase in Net Assets ...... 2,887,855 27,080,965 11,964,685 73,384,863
Net Assets:
Beginning of Period ............... 51,082,264 24,001,299 138,402,345 65,017,482
------------ ------------ ------------- -------------
End of Period (a) .................. $ 53,970,119 $ 51,082,264 $ 150,367,030 $ 138,402,345
============ ============ ============= =============
Capital Share Transactions:
Shares sold ..................... 704,117 5,026,877 3,363,225 5,461,630
Contribution in-kind ............ -- -- -- 10,749,843
Shares issued for dividend
reinvestment ..................... -- -- 11,184 13,188
Shares redeemed .................. (559,218) (1,057,030) (2,500,985) (5,957,354)
------------ ------------ ------------- -------------
Net Increase (Decrease) in Shares
Outstanding ..................... 144,899 3,969,847 873,424 10,267,307
============ ============ ============= =============
------------
(a) Including undistributed
(distributions in excess of) net
investment income ............. $ (10,723) $ (10,723) $ 28,473 $ 28,473
(b) The Fund changed its fiscal
year end to March 31, 1997.
</TABLE>
See Notes to Financial Statements.
<PAGE>
Excelsior Institutional Trust
Statements of Changes in Net Assets -- (continued)
<TABLE>
<CAPTION>
Balanced Fund International Equity Fund
----------------------------------- ---------------------------------
Six Months Six Months
Ended Ten Months Ended Ten Months
September 30, Ended September 30, Ended
1997 March 31, 1997 March 31,
(Unaudited) 1997(b) (Unaudited) 1997(b)
----------------- ---------------- ---------------- ---------------
<S> <C> <C> <C> <C>
Increase (Decrease) in Net Assets from:
Operations:
Net investment income ..................... $ 1,785,383 $ 3,029,273 $ 442,363 $ 131,111
Net realized gain on investments ......... 7,952,208 2,735,694 142,976 451,182
Net realized loss on foreign currency
transactions .............................. -- -- (19,733) (57,101)
Net change in unrealized
appreciation/depreciation of investments
during the period ........................ 7,414,285 1,611,223 2,751,067 57,410
------------- ------------- ------------ ------------
Net increase in net assets resulting from
operations ........................... 17,151,876 7,376,190 3,316,673 582,602
Distributions to Shareholders:
From net investment income
Institutional Shares ..................... (2,294,850) (3,169,226) (395,052) (226,392)
Trust Shares .............................. (157,227) -- -- --
In excess of net investment income
Institutional Shares ..................... -- -- -- (129,768)
From net realized gains
Institutional Shares ..................... -- (3,666,341) -- (377,475)
------------- ------------- ------------ ------------
Total distributions to shareholders ...... (2,452,077) (6,835,567) (395,052) (733,635)
------------- ------------- ------------ ------------
Transactions in Shares of Beneficial Interest:
Net proceeds from shares sold
Institutional Shares ..................... 6,978,918 18,753,237 15,142,358 11,788,947
Trust Shares .............................. 19,314,536 -- -- --
Contribution in-kind
Institutional Shares ..................... -- -- -- 8,235,903
Reinvestment of dividends
Institutional Shares ..................... 630 1,657 8,515 --
Trust Shares .............................. 157,227 -- -- --
Cost of shares redeemed
Institutional Shares ..................... (33,256,331) (17,971,066) (4,140,831) (5,926,057)
Trust Shares .............................. (318,090) -- -- --
------------- ------------- ------------ ------------
Net increase (decrease) in net assets from
beneficial interest transactions ......... (7,123,110) 783,828 11,010,042 14,098,793
------------- ------------- ------------ ------------
Total Increase in Net Assets ............ 7,576,689 1,324,451 13,931,663 13,947,760
Net Assets:
Beginning of Period ........................ 96,962,499 95,638,048 38,469,661 24,521,901
------------- ------------- ------------ ------------
End of Period (a) ........................ $ 104,539,188 $ 96,962,499 $ 52,401,324 $ 38,469,661
============= ============= ============ ============
Capital Share Transactions:
Shares sold:
Institutional Shares ..................... 788,958 2,281,968 1,593,358 1,294,468
Trust Shares (c) ........................ 2,069,662 -- -- --
Contribution in-kind:
Institutional Shares ..................... -- -- -- 894,234
Shares issued for dividend reinvestment:
Institutional Shares ..................... 70 201 878 --
Trust Shares (c) ........................ 16,378 -- -- --
Shares redeemed:
Institutional Shares ..................... (3,673,944) (2,190,146) (439,484) (652,788)
Trust Shares (c) ........................ (33,391)
------------- ------------- ------------ ------------
Net Increase (Decrease) in Shares Outstanding (832,267) 92,023 1,154,752 1,535,914
============= ============= ============ ============
------------
(a) Including undistributed (distributions in
excess of) net investment income ....... $ 53,056 $ 719,750 $ (82,457) $ (129,768)
(b) The Fund changed its fiscal year end to
March 31, 1997.
(c) Initial offering of Trust Shares commenced
operations on August 25, 1977 for Balanced
Fund.
</TABLE>
See Notes to Financial Statements.
<PAGE>
Excelsior Institutional Trust
Statements of Changes in Net Assets -- (continued)
<TABLE>
<CAPTION>
Optimum Growth Fund
----------------------------------
Six Months
Ended
September 30, Period Ended
1997 March 31,
(Unaudited) 1997 (b)
---------------- ----------------
<S> <C> <C>
Increase (Decrease) in Net Assets from:
Operations:
Net investment income .................................... $ 48,183 $ 129,278
Net realized gain (loss) on investments .................. (969,740) (804,467)
Net change in unrealized appreciation/depreciation of
investments during the period ........................... 10,776,814 676,660
------------ ------------
Net increase in net assets resulting from operations ...... 9,855,257 1,471
Distributions to Shareholders from net investment income:
Institutional Shares ....................................... (91,184) (75,546)
Trust Shares ............................................. (4,167) (1,457)
------------ ------------
Total distributions to shareholders ..................... (95,351) (77,003)
------------ ------------
Transactions in Shares of Beneficial Interest:
Net proceeds from shares sold
Institutional Shares ....................................... 3,183,011 6,828,215
Trust Shares ............................................. 1,830,511 3,547,991
Contribution in-kind
Institutional Shares ....................................... -- 20,819,867
Reinvestment of dividends
Institutional Shares ....................................... 2,743 390
Trust Shares ............................................. 875 1,458
Cost of shares redeemed
Institutional Shares ....................................... (590,336) (576,929)
Trust Shares ............................................. (535,601) (5,834)
------------ ------------
Net increase in net assets from beneficial interest
transactions .......................................... 3,891,203 30,615,158
------------ ------------
Total Increase in Net Assets ........................... 13,651,109 30,539,626
Net Assets:
Beginning of Period ....................................... 30,539,626 --
------------ ------------
End of Period (a) .......................................... $ 44,190,735 $ 30,539,626
============ ============
Capital Share Transactions:
Shares sold:
Institutional Shares (c) ................................. 264,964 640,078
Trust Shares (d) .......................................... 142,672 330,238
Contribution in-kind:
Institutional Shares (c) ................................. -- 2,081,986
Shares issued for dividend reinvestment:
Institutional Shares (c) ................................. 235 37
Trust Shares (d) .......................................... 83 142
Shares redeemed:
Institutional Shares (c) ................................. (49,417) (54,781)
Trust Shares (d) .......................................... (43,215) (584)
------------ ------------
Net Increase in Shares Outstanding ........................... 315,322 2,997,116
============ ============
------------
(a) Including undistributed net investment income ............ $ 5,107 $ 52,275
(b) For the period June 1, 1996 (Commencement of
operations) to March 31, 1997.
(c) Initial offering of Institutional Shares commenced
operations on June 1, 1996 for Optimum Growth Fund
and Value Equity Fund.
(d) Initial offering of Trust Shares commenced operations
on July 3, 1996 for Optimum Growth Fund and
January 15, 1997 for Value Equity Fund.
</TABLE>
<PAGE>
RESTUBBED TABLE
<TABLE>
<CAPTION>
Value Equity Fund
---------------------------------
Six Months
Ended
September 30, Period Ended
1997 March 31,
(Unaudited) 1997 (b)
---------------- ---------------
<S> <C> <C>
Increase (Decrease) in Net Assets from:
Operations:
Net investment income .................................... $ 106,322 $ 171,115
Net realized gain (loss) on investments .................. 1,210,929 (34,750)
Net change in unrealized appreciation/depreciation of
investments during the period ........................... 7,240,460 2,615,459
------------- ------------
Net increase in net assets resulting from operations ...... 8,557,711 2,751,824
Distributions to Shareholders from net investment income:
Institutional Shares ....................................... (156,533) (119,110)
Trust Shares ............................................. (211) --
------------- ------------
Total distributions to shareholders ..................... (156,744) (119,110)
------------- ------------
Transactions in Shares of Beneficial Interest:
Net proceeds from shares sold
Institutional Shares ....................................... 1,095,048 1,035,782
Trust Shares ............................................. 17,850 59,997
Contribution in-kind
Institutional Shares ....................................... -- 20,345,814
Reinvestment of dividends
Institutional Shares ....................................... -- --
Trust Shares ............................................. -- --
Cost of shares redeemed
Institutional Shares ....................................... (229,068) (331,027)
Trust Shares ............................................. (107) --
------------- ------------
Net increase in net assets from beneficial interest
transactions .......................................... 883,723 21,110,566
------------- ------------
Total Increase in Net Assets ........................... 9,284,690 23,743,280
Net Assets:
Beginning of Period ....................................... 23,743,280 --
------------- ------------
End of Period (a) .......................................... $ 33,027,970 $ 23,743,280
============= ============
Capital Share Transactions:
Shares sold:
Institutional Shares (c) ................................. 88,857 86,905
Trust Shares (d) .......................................... 1,191 4,975
Contribution in-kind:
Institutional Shares (c) ................................. -- 2,034,581
Shares issued for dividend reinvestment:
Institutional Shares (c) ................................. -- --
Trust Shares (d) .......................................... -- --
Shares redeemed:
Institutional Shares (c) ................................. (16,910) (30,902)
Trust Shares (d) .......................................... (9) --
------------- ------------
Net Increase in Shares Outstanding ........................... 73,129 2,095,559
============= ============
------------
(a) Including undistributed net investment income ............ $ 1,583 $ 52,005
(b) For the period June 1, 1996 (Commencement of
operations) to March 31, 1997.
(c) Initial offering of Institutional Shares commenced
operations on June 1, 1996 for Optimum Growth Fund
and Value Equity Fund.
(d) Initial offering of Trust Shares commenced operations
on July 3, 1996 for Optimum Growth Fund and
January 15, 1997 for Value Equity Fund.
</TABLE>
See Notes to Financial Statements.
<PAGE>
Excelsior Institutional Trust
Financial Highlights
<TABLE>
<CAPTION>
Selected data for a share outstanding throughout each period are as follows:
Equity Fund
------------------------------------------------------------------
Six Months
Ended Ten Months January 16,
September 30, Ended Year Ended 1995(b) to
1997 March 31, May 31, May 31,
(Unaudited) 1997(a) 1996 1995
---------------- ---------------- ------------ ----------------
<S> <C> <C> <C> <C>
Net Asset Value, Beginning of
Period ........................ $ 9.65 $ 8.93 $ 7.73 $ 7.00
-------------- ------------- ------- ----------
Investment Operations:
Net investment income ......... 0.04 0.05 0.11 0.05
Net realized and unrealized
gain (loss) on investments ... 2.63 0.86 1.20 0.70
-------------- ------------- ------- ----------
Total From Investment
Operations .................. 2.67 0.91 1.31 0.75
-------------- ------------- ------- ----------
Distributions:
From net investment income ... (0.05) (0.07) (0.11) (0.02)
In excess of net investment
income ........................ -- -- -- --
From net realized gains ...... -- (0.12) -- --
------------ ------------- ------- ----------
Total Distributions ......... (0.05) (0.19) (0.11) (0.02)
------------ ------------- ------- ----------
Net Asset Value, End of Period ... $ 12.27 $ 9.65 $ 8.93 $ 7.73
============ ============= ======= ==========
Total Return ..................... 27.57%(c) 10.22%(c) 17.04% 10.80%(c)
============ ============= ======= ==========
Ratios and Supplemental Data:
Ratios to Average Net Assets
Expenses (d) .................. 0.70%(f) 0.70%(f) 0.36% 0.12%(f)
Net Investment Income (d) ...... 0.59%(f) 0.70%(f) 1.32% 2.44%(f)
Portfolio Turnover ............... 24% 32% 113% 34%
Average Commission Rate (e) ...... $ 0.0754 $ 0.0800 N/A N/A
Net Assets at end of Period
(000's omitted) ............... $ 131,901 $ 118,562 $23,495 $ 15,409
-------------
(a) The Fund changed its fiscal year end to March 31, 1997.
(b) Commencement of Operations
(c) Not annualized
(d) Reflects voluntary fee waiver and reimbursement of expenses, if any, by the advisor and administrators. Without these
waivers, the ratio of expenses to average net assets and net investment income to average net assets would have been as
follows:
Expenses to Average Net
Assets ..................... 0.89%(f) 0.92%(f) 1.49% 2.67%(f)
Net Investment Income to
Average Net Assets ......... 0.40%(f) 0.48%(f) 0.19% (0.12)%(f)
(e) For fiscal years beginning on or after September 1, 1995, a portfolio is required to disclose the average commission rate per
share it paid for portfolio trades on which commissions were charged.
(f) Annualized
(g) Amount represents less than $0.01 per share.
</TABLE>
<PAGE>
RESTUBBED TABLE
<TABLE>
<CAPTION>
Income Fund
-----------------------------------------------------------------
Six Months
Ended Ten Months January 16,
September 30, Ended Year Ended 1995(b) to
1997 March 31, May 31, May 31,
(Unaudited) 1997(a) 1996 1995
--------------- ---------------- ------------ ----------------
<S> <C> <C> <C> <C>
Net Asset Value, Beginning of
Period ........................ $ 6.90 $ 6.99 $ 7.33 $ 7.00
----------- ----------- ------- -----------
Investment Operations:
Net investment income ......... 0.22 0.38 0.51 0.19
Net realized and unrealized
gain (loss) on investments ... 0.25 (0.01) (0.27) 0.33
----------- ----------- ------- -----------
Total From Investment
Operations .................. 0.47 0.37 0.24 0.52
----------- ----------- ------- -----------
Distributions:
From net investment income ... (0.22) (0.38) (0.51) (0.19)
In excess of net investment
income ........................ -- --(g) -- --
From net realized gains ...... -- (0.08) (0.07) --
----------- ----------- ------- -----------
Total Distributions ......... (0.22) (0.46) (0.58) (0.19)
----------- ----------- ------- -----------
Net Asset Value, End of Period ... $ 7.15 $ 6.90 $ 6.99 $ 7.33
=========== =========== ======= ===========
Total Return ..................... 14.24%(c) 5.39%(c) 3.18% 7.51%(c)
=========== =========== ======= ===========
Ratios and Supplemental Data:
Ratios to Average Net Assets
Expenses (d) .................. 0.50%(f) 0.50%(f) 0.26% 0.12%(f)
Net Investment Income (d) ...... 6.31%(f) 6.50%(f) 6.99% 7.17%(f)
Portfolio Turnover ............... 169% 107% 67% 34%
Average Commission Rate (e) ...... N/A N/A N/A N/A
Net Assets at end of Period
(000's omitted) ............... $ 53,970 $ 51,082 $24,001 $ 33,230
-------------
(a) The Fund changed its fiscal year end to March 31, 1997.
(b) Commencement of Operations
(c) Not annualized
(d) Reflects voluntary fee waiver and reimbursement of expenses, if any, by the advisor and administrators. Without these
waivers, the ratio of expenses to average net assets and net investment income to average net assets would have been as
follows:
Expenses to Average Net
Assets ..................... 0.92%(f) 0.96%(f) 1.35% 1.65%(f)
Net Investment Income to
Average Net Assets ......... 5.89%(f) 6.04%(f) 5.90% 5.65%(f)
(e) For fiscal years beginning on or after September 1, 1995, a portfolio is required to disclose the average commission rate per
share it paid for portfolio trades on which commissions were charged.
(f) Annualized
(g) Amount represents less than $0.01 per share.
</TABLE>
See Notes to Financial Statements.
<PAGE>
Excelsior Institutional Trust
Financial Highlights -- (continued)
<TABLE>
<CAPTION>
Selected data for a share outstanding throughout each period are as follows:
Total Return Bond Fund
------------------------------------
Six Months
Ended Ten Months
September 30, Ended
1997 March 31,
(Unaudited) 1997 (a)
------------------ ----------------
<S> <C> <C>
Net Asset Value, Beginning of Period ......... $ 7.16 $ 7.18
------------- -----------
Investment Operations:
Net investment income ..................... 0.22 0.37
Net realized and unrealized gain (loss) on
investments .............................. 0.28 0.01(g)
------------- -----------
Total From Investment Operations ............ 0.50 0.38
------------- -----------
Distributions:
From net investment income .................. (0.22) (0.37)
In excess of net investment income ......... -- --
From net realized gains ..................... -- (0.03)
------------- -----------
Total Distributions ........................ (0.22) (0.40)
------------- -----------
Net Asset Value, End of Period ............... $ 7.44 $ 7.16
============= ===========
Total Return ................................. 14.51%(c) 5.29%(c)
============= ===========
Ratios and Supplemental Data:
Ratios to Average Net Assets
Expenses (d) .............................. 0.50%(f) 0.50%(f)
Net Investment Income (d) .................. 6.02%(f) 6.08%(f)
Portfolio Turnover ........................... 198% 200%
Average Commission Rate (e) .................. N/A N/A
Net Assets at end of Period (000's omitted) $ 150,367 $ 138,402
----------
(a) The Fund changed its fiscal year end to March 31, 1997.
(b) Commencement of Operations
(c) Not annualized
(d) Reflects voluntary fee waiver and reimbursement of expenses, if any, by the advisor and administrators. Without these waivers,
the ratio of expenses to average net assets and net investment income to average net assets would have been as follows:
Expenses to Average Net Assets ......... 0.90%(f) 0.92%(f)
Net Investment Income to Average Net
Assets ................................. 5.62%(f) 5.66%(f)
(e) For fiscal years beginning on or after September 1, 1995, a portfolio is required to disclose the average commission rate per
share it paid for portfolio trades on which commissions were charged.
(f) Annualized
(g) The amount shown for the ten months ended March 31, 1997 for a share outstanding throughout that period does not accord with
the aggregate net losses on investments for that period because of the timing of sales and repurchases of the portfolio shares
in relation to fluctuating market value of the Fund.
</TABLE>
<PAGE>
RESTUBBED TABLE
<TABLE>
<CAPTION>
Balanced Fund
-----------------------------------
Institutional Shares
-----------------------------------
Six Months
January 19, Ended Ten Months
Year Ended 1995(b) to September 30, Ended
May 31, May 31, 1997 March 31,
1996 1995 (Unaudited) 1997 (a)
--------------------- ------------------ --------------- ------------------
<S> <C> <C> <C> <C>
Net Asset Value, Beginning of Period ......... $ 7.47 $ 7.00 $ 8.31 $ 8.26
------- ------------ --------- -----------
Investment Operations:
Net investment income ..................... 0.48 0.18 0.18 0.26
Net realized and unrealized gain (loss) on
investments .............................. (0.17) 0.47 1.38 0.40
------- ------------ --------- -----------
Total From Investment Operations ............ 0.31 0.65 1.56 0.66
------- ------------ --------- -----------
Distributions:
From net investment income .................. (0.48) (0.18) (0.22) (0.28)
In excess of net investment income ......... -- -- -- --
From net realized gains ..................... (0.12) -- -- (0.33)
------- ------------ --------- -----------
Total Distributions ........................ (0.60) (0.18) (0.22) (0.61)
------- ------------ --------- -----------
Net Asset Value, End of Period ............... $ 7.18 $ 7.47 $ 9.65 $ 8.31
======= ============ ========= ===========
Total Return ................................. 4.20% 9.40%(c) 18.98%(c) 8.20%(c)
======= ============ ========= ===========
Ratios and Supplemental Data:
Ratios to Average Net Assets
Net Investment Income (d) .................. 0.32% 0.12%(f) 0.70%(f) 0.70%(f)
Expenses (d) .............................. 6.47% 7.09%(f) 3.64%(f) 3.84%(f)
Portfolio Turnover ........................... 127% 84% 86% 53%
Average Commission Rate (e) .................. N/A N/A $ 0.0566 $ 0.0591
Net Assets at end of Period (000's omitted) $65,017 $ 24,913 $ 84,740 $ 96,962
----------
(a) The Fund changed its fiscal year end to March 31, 1997.
(b) Commencement of Operations
(c) Not annualized
(d) Reflects voluntary fee waiver and reimbursement of expenses, if any, by the advisor and administrators. Without these waivers,
the ratio of expenses to average net assets and net investment income to average net assets would have been as follows:
Expenses to Average Net Assets ......... 1.33% 1.93%(f) 0.91%(f) 0.93%(f)
Net Investment Income to Average Net
Assets ................................. 5.46% 5.28%(f) 3.43%(f) 3.61%(f)
(e) For fiscal years beginning on or after September 1, 1995, a portfolio is required to disclose the average commission rate per
share it paid for portfolio trades on which commissions were charged.
(f) Annualized
(g) The amount shown for the ten months ended March 31, 1997 for a share outstanding throughout that period does not accord with
the aggregate net losses on investments for that period because of the timing of sales and repurchases of the portfolio shares
in relation to fluctuating market value of the Fund.
</TABLE>
<PAGE>
RESTUBBED TABLE
<TABLE>
<CAPTION>
Trust Shares
-----------------
August 25,
July 11, 1997(b), to
Year Ended 1994(b) to September 30,
May 31, May 31, 1997
1996 1995 (Unaudited)
---------------- -------------------- -----------------
<S> <C> <C> <C>
Net Asset Value, Beginning of Period ......... $ 7.70 $ 7.00 $ 9.33
------- -------------- -----------
Investment Operations:
Net investment income ..................... 0.34 0.35 0.02
Net realized and unrealized gain (loss) on
investments .............................. 0.78 0.64 0.38
------- -------------- -----------
Total From Investment Operations ............ 1.12 0.99 0.40
------- -------------- -----------
Distributions:
From net investment income .................. (0.36) (0.26) (0.08)
In excess of net investment income ......... -- -- --
From net realized gains ..................... (0.20) (0.03) --
------- -------------- -----------
Total Distributions ........................ (0.56) (0.29) (0.08)
------- -------------- -----------
Net Asset Value, End of Period ............... $ 8.26 $ 7.70 $ 9.65
======= ============== ===========
Total Return ................................. 15.07% 14.59%(c) 4.26%(c)
======= ============== ===========
Ratios and Supplemental Data:
Ratios to Average Net Assets
Expenses (d) .............................. 0.38% 0.12% (f) 1.05%(f)
Net Investment Income (d) .................. 4.34% 5.55% (f) 2.51%(f)
Portfolio Turnover ........................... 56% 57% 86%
Average Commission Rate (e) .................. N/A N/A $ 0.0566
Net Assets at end of Period (000's omitted) $95,638 $ 74,478 $ 19,799
----------
(a) The Fund changed its fiscal year end to March 31, 1997.
(b) Commencement of Operations
(c) Not annualized
(d) Reflects voluntary fee waiver and reimbursement of expenses, if any, by the advisor and administrators. Without these waivers,
the ratio of expenses to average net assets and net investment income to average net assets would have been as follows:
Expenses to Average Net Assets ......... 1.21% 1.32%(f) 1.26%(f)
Net Investment Income to Average Net
Assets ................................. 3.51% 4.35%(f) 2.32%(f)
(e) For fiscal years beginning on or after September 1, 1995, a portfolio is required to disclose the average commission rate per
share it paid for portfolio trades on which commissions were charged.
(f) Annualized
(g) The amount shown for the ten months ended March 31, 1997 for a share outstanding throughout that period does not accord with
the aggregate net losses on investments for that period because of the timing of sales and repurchases of the portfolio shares
in relation to fluctuating market value of the Fund.
</TABLE>
See Notes to Financial Statements.
<PAGE>
Excelsior Institutional Trust
Financial Highlights -- (continued)
Selected data for a share outstanding throughout each period are as follows:
<TABLE>
<CAPTION>
International Equity Fund
---------------------------------------------------------------------
Six Months
Ended Ten Months January 24,
September 30, Ended Year Ended 1995(b) to
1997 March 31, May 31, May 31,
(Unaudited) 1997(a) 1996 1995
--------------- -------------------- ------------ ----------------
<S> <C> <C> <C> <C>
Net Asset Value, Beginning of Period . $ 9.03 $ 8.99 $ 7.88 $ 7.00
------------- -------------- ------- -----------
Investment Operations:
Net investment income .................. 0.09 0.01 0.09 0.08
Net realized and unrealized gain on
investments ........................... 0.63 0.21 1.20 0.80
------------- -------------- ------- -----------
Total From Investment
Operations ........................ 0.72 0.22 1.29 0.88
------------- -------------- ------- -----------
Distributions:
From net investment income ............ (0.08) (0.06) (0.12) --
In excess of net investment income . -- (0.03) -- --
From net realized gains ............... -- (0.09) (0.06) --
------------- -------------- ------- -----------
Total Distributions .................. (0.08) (0.18) (0.18) --
------------- -------------- ------- -----------
Net Asset Value, End of Period ......... $ 9.67 $ 9.03 $ 8.99 $ 7.88
============= ============== ======= ===========
Total Return ........................... 7.97%(c) 2.41%(c) 16.58% 12.57%(c)
============= ============== ======= ===========
Ratios and Supplemental Data:
Ratios to Average Net Assets
Expenses (d) ........................... 0.90%(f) 0.90%(f) 0.60% 0.25%(f)
Net Investment Income (d) ............... 1.87%(f) 0.45%(f) 1.71% 3.47%(f)
Portfolio Turnover ..................... 22% 45% 19% 8%
Average Commission Rate (e) ............ $ 0.0294 $ 0.0293 N/A N/A
Net Assets at end of Period
(000's omitted) ........................ $ 52,401 $ 38,470 $ 24,522 $ 8,804
----------
(a) The Fund changed its fiscal year end to March 31, 1997.
(b) Commencement of Operations
(c) Not annualized
(d) Reflects voluntary fee waiver and reimbursement of expenses, if any, by the advisor and administrators. Without these waivers,
the ratio of expenses to average net assets and net investment income to average net assets would have been as follows:
Expenses to Average Net Assets ...... 1.44%(f) 1.49%(f) 2.05% 3.32%(f)
Net Investment Income to
Average Net Assets ................ 1.33%(f) (0.14%(f) 0.26% 0.40%(f)
(e) For fiscal years beginning on or after September 1, 1995, a portfolio is required to disclose the average commission rate per
share it paid for portfolio trades on which commissions were charged.
(f) Annualized
(g) The amount shown for the ten months ended March 31, 1997 for a share outstanding throughout that period does not accord with
the aggregate net losses on investments for that period because of the timing of sales and repurchases of the portfolio shares
in relation to fluctuating market value of the Fund.
</TABLE>
<PAGE>
RESTUBBED TABLE
<TABLE>
<CAPTION>
Optimum Growth Fund
---------------------------------------------------------------------------
Institutional Shares Trust Shares
----------------------------------- --------------------------------------
Six Months Six Months
Ended June 1, Ended July 3,
September 30, 1996(b) to September 30, 1996(b) to
1997 March 31, 1997 March 31,
(Unaudited) 1997 (Unaudited) 1997
---------------- ----------------- ------------------- -----------------
<S> <C> <C> <C> <C>
Net Asset Value, Beginning of Period . $ 10.19 $ 10.00 $ 10.18 $ 9.87
-------------- -------------- ------------- ---------------
Investment Operations:
Net investment income .................. 0.02 0.05 -- 0.02
Net realized and unrealized gain on
investments ........................... 3.16 0.17(g) 3.16 0.31(g)
-------------- -------------- ------------- ---------------
Total From Investment
Operations ........................ 3.18 0.22 3.16 0.33
-------------- -------------- ------------- ---------------
Distributions:
From net investment income ............ (0.03) (0.03) (0.01) (0.02)
In excess of net investment income . -- -- -- --
From net realized gains ............... -- -- -- --
-------------- -------------- ------------- ---------------
Total Distributions .................. (0.03) (0.03) (0.01) (0.02)
-------------- -------------- ------------- ---------------
Net Asset Value, End of Period ......... $ 13.34 $ 10.19 $ 13.33 $ 10.18
============== ============== ============= ===============
Total Return ........................... 31.29%(c) 2.23%(c) 31.10%(c) 3.31%(c)
============== ============== ============= ===============
Ratios and Supplemental Data:
Ratios to Average Net Assets
Expenses (d) ........................... 0.70%(f) 0.70%(f) 1.05%(f) 1.05%(f)
Net Investment Income (d) ............... 0.29%(f) 0.66%(f) (0.06%(f) 0.33%(f)
Portfolio Turnover ..................... 21% 20% 21% 20%
Average Commission Rate (e) ............ $ 0.0297 $ 0.0280 $ 0.0297 $ 0.0280
Net Assets at end of Period
(000's omitted) ........................ $ 38,466 $ 27,183 $ 5,725 $ 3,357
----------
(a) The Fund changed its fiscal year end to March 31, 1997.
(b) Commencement of Operations
(c) Not annualized
(d) Reflects voluntary fee waiver and reimbursement of expenses, if any, by the advisor and administrators. Without these waivers,
the ratio of expenses to average net assets and net investment income to average net assets would have been as follows:
Expenses to Average Net Assets.......... 0.97%(f) 1.11%(f) 1.32%(f) 1.47%(f)
Net Investment Income to
Average Net Assets .................. 0.02%(f) 0.25%(f) (0.33%(f) (0.09%(f)
(e) For fiscal years beginning on or after September 1, 1995, a portfolio is required to disclose the average commission rate per
share it paid for portfolio trades on which commissions were charged.
(f) Annualized
(g) The amount shown for the ten months ended March 31, 1997 for a share outstanding throughout that period does not accord with
the aggregate net losses on investments for that period because of the timing of sales and repurchases of the portfolio shares
in relation to fluctuating market value of the Fund.
</TABLE>
See Notes to Financial Statements.
<PAGE>
Excelsior Institutional Trust
Financial Highlights -- (continued)
Selected data for a share outstanding throughout each period are as follows:
<TABLE>
<CAPTION>
Value Equity Fund
------------------------------------
Institutional Shares
------------------------------------
Six Months
Ended June 1,
September 30, 1996(a) to
1997 March 31,
(Unaudited) 1997
-------------- --------------
<S> <C> <C>
Net Asset Value, Beginning of Period ........................ $ 11.33 $ 10.00
-------------- --------------
Investment Operations:
Net investment income ....................................... 0.05 0.08
Net realized and unrealized gain (loss) on investments ...... 3.92 1.31
-------------- --------------
Total From Investment Operations ........................... 3.97 1.39
-------------- --------------
Distributions:
From net investment income ................................. (0.07) (0.06)
-------------- --------------
Net Asset Value, End of Period .............................. $ 15.23 $ 11.33
============== ==============
Total Return ................................................ 35.17%(b) 13.91%(b)
============== ==============
Ratios and Supplemental Data:
Ratios to Average Net Assets
Expenses (c) ................................................ 0.70%(d) 0.70%(d)
Net Investment Income (c) .................................... 0.74%(d) 0.94%(d)
Portfolio Turnover .......................................... 68% 64%
Average Commission Rate .................................... $ 0.0641 $ 0.0783
Net Assets at end of Period (000's omitted) .................. $ 32,934 $ 23,687
----------
(a) Commencement of Operations
(b) Not annualized
(c) Reflects voluntary fee waiver and reimbursement of expenses, if any, by the advisor and administrators. Without these
waivers, 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 ........................... 1.01%(d) 1.12%(d)
Net Investment Income to
Average Net Assets ....................................... 0.43%(d) 0.52%(d)
(d) Annualized
</TABLE>
<PAGE>
RESTUBBED TABLE
<TABLE>
<CAPTION>
Value Equity Fund
------------------------------------
Trust Shares
------------------------------------
Six Months
Ended January 15,
September 30, 1997(a) to
1997 March 31,
(Unaudited) 1997
-------------- --------------
<S> <C> <C>
Net Asset Value, Beginning of Period ........................ $ 11.33 $ 12.08
-------- -------
Investment Operations:
Net investment income ....................................... 0.03 0.01
Net realized and unrealized gain (loss) on investments ...... 3.91 (0.76)
-------- -------
Total From Investment Operations ........................... 3.94 (0.75)
-------- -------
Distributions:
From net investment income ................................. (0.04) --
-------- -------
Net Asset Value, End of Period .............................. $ 15.23 $ 11.33
======= ========
Total Return ................................................ 34.86%(b) (6.21)%(b)
======= ========
Ratios and Supplemental Data:
Ratios to Average Net Assets
Expenses (c) ................................................ 1.05%(d) 1.05%(d)
Net Investment Income (c) .................................... 0.39%(d) 0.54%(d)
Portfolio Turnover .......................................... 68% 64
Average Commission Rate .................................... $0.0641 $ 0.0783
Net Assets at end of Period (000's omitted) .................. $ 94 $ 56
----------
(a) Commencement of Operations
(b) Not annualized
(c) Reflects voluntary fee waiver and reimbursement of expenses, if any, by the advisor and administrators. Without these
waivers, 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 ........................... 1.35%(d) 1.43%(d)
Net Investment Income to
Average Net Assets ....................................... 0.08%(d) 0.16%(d)
(d) Annualized
</TABLE>
See Notes to Financial Statements.
<PAGE>
Excelsior Institutional Trust
Notes to Financial Statements (Unaudited)
1. Significant Accounting Policies:
Excelsior Institutional Trust ("Trust") is registered under the Investment
Company Act of 1940 ("Act") and the Securities Act of 1933, as an open-end
diversified management investment company and is comprised of eight funds (each
a "Fund", collectively, the "Funds"), each having its own investment objectives
and policies.
These financial statements pertain to the following seven Funds: Excelsior
Institutional Equity Fund ("Equity Fund"), Excelsior Institutional Income Fund
("Income Fund"), Excelsior Institutional Total Return Bond Fund ("Total Return
Bond Fund"), Excelsior Institutional Balanced Fund ("Balanced Fund"), Excelsior
Institutional International Equity Fund ("International Equity Fund"),
Excelsior Institutional Optimum Growth Fund ("Optimum Growth Fund") and
Excelsior Institutional Value Equity Fund ("Value Equity Fund"). With regard to
Balanced Fund, International Equity Fund, Optimum Growth Fund and Value Equity
Fund, the Trust offers two classes of shares: Institutional Shares and Trust
Shares. The Optimum Growth Fund and Value Equity Fund commenced operations on
June 1, 1996 with the offering of Institutional Shares. The Optimum Growth
Fund, Value Equity Fund and Balanced Fund began offering Trust Shares on July
3, 1996, January 15, 1997, and August 25, 1997, respectively. At September 30,
1997 International Equity Fund has not issued Trust Shares. The financial
statements for Excelsior Institutional Bond Index Fund are presented
separately.
The following is a summary of the significant accounting policies of the
Funds. Such policies are in conformity with generally accepted accounting
principles for investment companies and are consistently followed by the Funds
in the preparation of the financial statements. Generally accepted accounting
principles require management to make estimates and assumptions that affect the
reported amounts and disclosures on the financial statements. Actual results
could differ from these estimates.
a) Valuation of Investments--Investments in securities that are traded on
a domestic stock exchange are valued at the last sale price on the exchange on
which such securities are primarily traded or at the last sale price on a
national securities market. Securities traded over-the-counter are valued each
business day on the basis of closing over-the-counter bid prices. Securities
for which there were no transactions are valued at the average of the most
recent bid 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 is 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
Funds' 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
<PAGE>
Excelsior Institutional Trust
Notes to Financial Statements (Unaudited) -- (Continued)
exchange rates prevailing upon the respective dates of such transactions. Gains
and losses attributable to foreign currency exchange rates are recorded for
financial statement purposes as net realized gains and losses on investments.
That portion of both realized and unrealized gains and losses on investments
that results from fluctuations in foreign currency exchange rates is not
separately disclosed.
Securities for which market quotations are not readily available are
valued at fair value pursuant to guidelines adopted by the Funds' 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
Fund'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 a Fund 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 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.
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 Fund is informed of the dividend.
d) 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 Equity Fund, Balanced Fund, Optimum Growth Fund, and the Value Equity Fund,
dividends will be declared and paid at least quarterly; for the Income Fund and
Total Return Bond Fund, dividends will be declared daily and paid at least
monthly; and for the International Equity Fund, dividends will be declared and
paid at least once a year. Distributions to shareholders of net realized
capital gains, if any, are normally declared and paid annually, but the Funds
may make distributions on a more frequent basis to comply with the distribution
requirements of the Internal Revenue Code. To the extent that net realized
capital gain can be offset by capital loss carryovers, if any, it is the policy
of the Trust not to distribute such gain.
Dividends and distributions are determined in accordance with Federal
income tax regulations which may differ from generally accepted accounting
principles. These differences are primarily due to differing treatments for
foreign currency transactions, passive foreign investment companies, deferral
of losses on wash sales, and post-October losses.
In order to avoid a Federal excise tax, each Fund is required to
distribute certain minimum amounts of net realized capital gain and net
investment income for the respective periods ending October 31 and December 31
in each calendar year.
<PAGE>
Excelsior Institutional Trust
Notes to Financial Statements (Unaudited) -- (Continued)
e) Repurchase agreements--The Funds 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 Funds' agreement to
resell such securities at mutually agreed upon prices. Securities purchased
subject to such repurchase agreements are deposited with the Funds' custodian
or are maintained in the Federal Reserve/Treasury book-entry system and must
have, at all times, an aggregate market value not less than the repurchase
price.
If the value of the underlying security falls below the value of the
repurchase price, the Funds will require the seller to deposit additional
collateral by the next business day. Default or bankruptcy of the seller may,
however, expose the applicable Fund to the possible delay in the connection
with the disposition of the underlying securities or loss to the extent that
proceeds from the sale of the underlying securities were less than the
repurchase price under the agreement.
f) Deferred Organization Expense--Expenses incurred by each Fund in
connection with its organization are being amortized on a straight-line basis
over a five year period.
g) 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 and expenses directly attributable to a particular class
of shares in a Fund are charged to such class.
h) Federal Income Taxes--It is the policy of each Fund to continue 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.
At March 31, 1997, Optimum Growth Fund and Value Equity Fund had
approximate capital loss carryforwards of $404,322 and $49,313, respectively
for Federal tax purposes available to offset future net capital gains through
March 31, 2005.
At September 30, 1997, the aggregate cost and gross unrealized
appreciation and gross unrealized depreciation in the value of investments
owned by the Funds, as computed on a federal tax basis, were as follows:
<TABLE>
<CAPTION>
Total
Return International Optimum Value
Equity Income Bond Balanced Equity Growth Equity
Fund Fund Fund Fund Fund Fund Fund
------------- ------------- -------------- ------------- --------------- ------------- --------------
<S> <C> <C> <C> <C> <C> <C> <C>
Aggregate Cost ... $99,405,546 $52,354,575 $146,322,738 $83,833,443 $ 46,472,825 $33,042,546 $23,149,308
=========== =========== ============ =========== ============= =========== ===========
Gross unrealized
appreciation ...... $32,967,535 $1,146,727 $ 2,695,945 $19,611,657 $ 8,781,729 $12,082,196 $ 9,918,779
----------- ----------- ------------ ----------- ------------- ----------- -----------
Gross unrealized
depreciation ...... (510,483) (3,479) (31,824) (284,234) (2,707,076) (628,722) (62,860)
----------- ----------- ------------ ----------- ------------- ----------- -----------
Net unrealized
appreciation
(depreciation) ... $32,457,052 $1,143,248 $ 2,664,121 $19,327,423 $ 6,074,653 $11,453,474 $ 9,855,919
=========== =========== ============ =========== ============= =========== ===========
</TABLE>
<PAGE>
Excelsior Institutional Trust
Notes to Financial Statements (Unaudited) -- (Continued)
2. Investment Advisory Fee, Administration Fee, Distribution Expenses and
Related Party Transactions:
a) United States Trust Company of New York ("U.S. Trust NY") and U.S.
Trust Company of Connecticut ("U.S. Trust CT" and collectively with U.S. Trust
NY, "U.S. Trust") serve as the investment advisors to the Equity Fund, Income
Fund, Total Return Bond Fund, Optimum Growth Fund and Value Equity Fund. For
the services provided pursuant to the Investment Advisory Agreements, U.S.
Trust is entitled to receive a fee, computed daily and paid monthly, at the
annual rate of 0.65% of the average daily net assets of each Fund. Prior to May
15, 1997, U.S. Trust NY served as the Funds' investment advisor pursuant to
investment advisory agreements substantially similar to those currently in
effect for the Funds.
United States Trust Company of The Pacific Northwest ("U.S. Trust
Pacific") serves as the investment advisor to the Balanced Fund and
International Equity Fund. U.S. Trust Pacific has delegated the daily
management of the security holdings of these Funds to the investment managers
named below, acting as sub-advisors:
Balanced Fund .................. Becker Capital Management, Inc.
International Equity Fund ...... Harding, Loevner Management, L.P.
For the services provided pursuant to the Investment Advisory Agreements,
U.S. Trust Pacific is entitled to receive a fee, computed daily and paid
monthly, at the annual rate of 0.65% of the average daily net assets for the
Balanced Fund, and 1.00% of the average daily net assets of the International
Equity Fund. Pursuant to separate sub-advisory agreements between U.S. Trust
Pacific and each sub-advisor, sub-advisory fees are payable monthly by U.S.
Trust Pacific, computed on the average daily value of each Fund's net assets at
the following annual rates: 0.425% for the Balanced Fund, and 0.50% for the
International Equity Fund. The sub-advisors are compensated only by U.S. Trust
Pacific, and receive no fee directly from the Funds.
U.S. Trust NY, U.S. Trust CT and U.S. Trust Pacific are wholly-owned
subsidiaries of U.S. Trust Corporation, a registered bank holding company.
b) U.S. Trust CT, Chase Global Funds Services Company ("CGFSC"), a
subsidiary of The Chase Manhattan Bank, and Federated Administrative Services
("FAS"), a wholly-owned subsidiary of Federated Investors (collectively, the
"Administrators") provide administrative services to the Trust. For the
services provided to the Funds, the Administrators are entitled jointly to
annual fees, computed daily and paid monthly, based on the combined aggregate
average daily net assets of the Funds (excluding the International Equity
Fund), Excelsior Funds, Inc. (excluding its international equity portfolios),
and Excelsior Tax-Exempt Funds, Inc., all of which are affiliated investment
companies, as follows: 0.200% of the first $200 million, 0.175% of the next
$200 million, and 0.150% over $400 million. Administration fees payable by each
Fund of the three investment companies are determined in proportion to the
relative average daily net assets of the respective Funds for the period paid.
The Administrators are entitled jointly to annual fees, computed daily and paid
monthly, based on the average daily net assets of the International Equity Fund
at an annual rate of 0.20%. Prior to May 15, 1997, U.S. Trust NY,
<PAGE>
Excelsior Institutional Trust
Notes to Financial Statements (Unaudited) -- (Continued)
CGFSC and FAS served as the Funds' administrators pursuant to administration
agreements substantially similar to those currently in effect for the Funds.
For the six months ended September 30, 1997 administration fees charged by U.S.
Trust were as follows:
Equity Fund .............................................. $16,643
Income Fund .............................................. $ 6,643
Total Return Bond Fund ................................... $18,915
Balanced Fund ............................................ $10,959
International Equity Fund ................................ $17,210
Optimum Growth Fund ...................................... $ 5,035
Value Equity Fund ........................................ $ 3,756
c) From time to time, as they may deem appropriate in their sole
discretion, or pursuant to applicable state expense limitations, U.S. Trust,
U.S. Trust Pacific and the Administrators may undertake to waive a portion or
all of the fees payable to them and also may reimburse the Funds for a portion
of other operating expenses. Until further notice, U.S. Trust and U.S. Trust
Pacific have agreed to voluntarily waive fees and reimburse expenses to the
extent necessary to maintain an annual operating expense ratio of not more than
0.50% of average daily net assets of the Income Fund and Total Return Bond
Fund; 0.70% of average daily net assets of the Equity Fund, and the
Institutional Shares of the Balanced Fund, Optimum Growth Fund and Value Equity
Fund; 0.90% of average daily net assets of the International Equity Fund; and
1.05% of average daily net assets of the Trust Shares of the Optimum Growth
Fund, Value Equity Fund and Balanced Fund. For the six months ended September
30, 1997, U.S. Trust voluntarily waived fees in the following amounts:
Equity Fund ............................................. $124,471
Income Fund ............................................. $108,450
Total Return Bond Fund .................................. $290,666
Balanced Fund ........................................... $104,526
International Equity Fund ............................... $127,081
Optimum Growth Fund ..................................... $ 52,222
Value Equity Fund ....................................... $ 44,413
d) The Trust, on behalf of the Funds, may enter into administrative
servicing agreements with various service organizations (which may include
affiliates of U.S. Trust) requiring them to provide administrative support
services to their customers owning shares of the Funds. As a consideration for
the administrative services provided by each service organization to its
customers, each Fund will pay the service organizations an administrative
service fee at the annual rate of up to 0.40% of the average daily net asset
value of its shares held by the service organizations' customers. Such services
may include assisting in processing purchase, exchange or redemption requests;
transmitting and receiving funds in connection with customer orders to
purchase, exchange or redeem shares; and providing periodic statements. The
adviser intends to voluntarily waive fees in an amount equal to the
administrative service fees, when incurred. For the six months ended September
30, 1997, no administrative service fees have been charged to the Funds.
<PAGE>
Excelsior Institutional Trust
Notes to Financial Statements (Unaudited) -- (Continued)
e) Pursuant to a Distribution Agreement, Edgewood Services, Inc. (the
"Distributor") serves as the Trust's distributor. Under the Funds' Distribution
Plan, adopted pursuant to Rule 12b-1 under the Act, the Trust Shares of the
Optimum Growth Fund, Value Equity Fund and Balanced Fund may compensate the
Distributor monthly for its services which are intended to result in the sale
of Trust Shares, in an amount not to exceed the annual rate of 0.75% of the
average daily net asset value of each Fund's outstanding Trust Shares. Trust
Shares currently bear the expense of such distribution fees at the annual rate
of 0.35% of the average daily net asset value of the Fund's outstanding Trust
Shares.
f) Independent Trustees receive an annual retainer of $4,000 and an
additional $250 for each meeting of the Board of Trustees attended. In
addition, the Trust reimburses independent Trustees for reasonable expenses
incurred when acting in their capacity as Trustees. Officers and Trustees of
the Trust, deemed to be affiliated or "interested parties" under the Act
receive no compensation from the Trust for their services.
g) For the six months ended September 30, 1997, brokerage commissions on
investment transactions were paid to UST Securities Corp. in the amount of
$7,145 for the Equity Fund and $990 for the Value Equity Fund. UST Securities
Corp. is a wholly-owned subsidiary of U.S. Trust Company of New Jersey which is
a wholly-owned subsidiary of U.S. Trust Corporation.
3. Purchases and Sales of Investment Securities.
a) Investment transactions (excluding short-term investments) for the six
months ended September 30, 1997 were as follows:
Cost of Proceeds
Purchases From Sales
-------------- -------------
Equity Fund ..................... $ 15,156,369 $ 34,358,454
Income Fund ..................... $ 45,282,342 $ 40,389,334
Total Return Bond Fund ......... $143,520,159 $128,375,651
Balanced Fund .................. $ 40,841,947 $ 50,305,187
International Equity Fund ...... $ 14,992,600 $ 4,751,671
Optimum Growth Fund ............ $ 7,784,550 $ 3,947,036
Value Equity Fund ............... $ 10,484,436 $ 9,678,573
b) Investment transactions in U.S. Government and Agency Obligations
(excluding short-term investments) for the six months ended September 30, 1997
were as follows:
Cost of Proceeds
Purchases From Sales
------------- -------------
Equity Fund ..................... -- --
Income Fund ..................... $20,154,554 $ 34,353,165
Total Return Bond Fund ......... $60,207,571 $103,533,417
Balanced Fund .................. $ 9,435,966 $ 12,962,416
International Equity Fund ...... -- --
Optimum Growth Fund ............ -- --
Value Equity Fund ............... -- --
