<PAGE>
Investment Advisers
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
U.S. Trust Company, N.A.
515 South Flower Street
Los Angeles, CA 90071
Transfer Agent
Chase Global Funds Services Company
73 Tremont Street
Boston, MA 02108
(800) 909-1989
Distributor
Edgewood Services, Inc.
5800 Corporate Drive
Pittsburgh, PA 15237
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 ISSA98
<PAGE>
EXCELSIOR
INSTITUTIONAL TRUST
Institutional Shares
EQUITY FUND
INCOME FUND
TOTAL RETURN BOND FUND
BALANCED FUND
INTERNATIONAL EQUITY FUND
OPTIMUM GROWTH FUND
VALUE EQUITY FUND
Semi-Annual Report
September 30, 1998
<PAGE>
Excelsior Institutional Trust
Schedule of Investments
September 30, 1998 (Unaudited)
Equity Fund
Shares Value
- ------------------------ -----------
COMMON STOCKS -- 97.50%
CONSUMER STAPLES -- 24.81%
66,652 Bestfoods ................................... $ 3,228,456
56,795 Coca-Cola Co. .............................. 3,272,812
84,365 Gillette Co. ............................... 3,226,961
67,884 Johnson & Johnson ........................... 5,311,923
88,451 Mattel, Inc. ............................... 2,476,628
59,751 Pfizer, Inc. ............................... 6,329,872
54,229 Procter & Gamble Co. ....................... 3,846,870
52,287 Schering-Plough Corp. ...................... 5,414,972
-----------
33,108,494
-----------
TECHNOLOGY -- 22.12%
41,770 +Analog Devices, Inc. ....................... 670,930
109,062 +Cisco Systems, Inc. ........................ 6,741,395
103,255 Ericsson LM ADR ............................. 1,897,311
45,988 Hewlett Packard Co. ........................ 2,434,490
51,428 Intel Corp. ................................ 4,409,951
119,342 +MCI WorldCom, Inc. ......................... 5,832,840
68,350 +Microsoft Corp. ............................ 7,522,772
-----------
29,509,689
-----------
FINANCIAL -- 16.42%
43,687 American International Group,
Inc. ...................................... 3,363,899
67,410 BankBoston Corp. ........................... 2,224,530
5,210 Capital One Financial Corp. ................ 539,235
20,830 Citicorp .................................... 1,935,888
72,904 Household International, Inc. .............. 2,733,900
51,974 Mellon Bank Corp. .......................... 2,861,819
44,761 Morgan Stanley Dean Witter &
Co. ....................................... 1,927,521
91,033 Norwest Corp. .............................. 3,260,119
42,570 Star Banc Corp. ............................ 2,814,941
51,240 +UniCapital Corp. ........................... 249,795
-----------
21,911,647
-----------
CONSUMER CYCLICAL -- 10.52%
101,701 CBS Corp. .................................. 2,466,249
39,425 +Lear Corp. ................................. 1,724,844
39,008 McDonald's Corp. ........................... 2,328,290
111,050 Stewart Enterprises, Inc., Class A .......... 1,860,087
56,293 Time Warner, Inc. .......................... 4,929,156
13,196 Wal-Mart Stores, Inc. ...................... 720,832
-----------
14,029,458
-----------
<PAGE>
Shares Value
- ------------------------ -----------
COMMON STOCKS -- (continued)
CAPITAL GOODS -- 9.88%
60,947 General Electric Co. ....................... $ 4,849,096
38,301 Honeywell, Inc. ............................ 2,453,658
56,350 Illinois Tool Works, Inc. .................. 3,071,075
71,007 Raychem Corp. .............................. 1,730,795
71,621 +Thermo Electron Corp. ...................... 1,078,791
-----------
13,183,415
-----------
ENERGY -- 7.89%
27,139 British Petroleum Co. ADR ................... 2,367,878
37,632 Burlington Resources, Inc. ................. 1,406,496
40,912 Mobil Corp. ................................ 3,106,755
21,225 +Ocean Energy, Inc. ......................... 278,578
13,990 +Petroleum Geo-Services ADR .................. 222,091
65,977 Royal Dutch Petroleum Co. .................. 3,142,155
-----------
10,523,953
-----------
RAW/INTERMEDIATE MATERIALS -- 3.87%
53,660 Monsanto Co. ............................... 3,025,082
81,396 Pioneer Hi-Bred International,
Inc. ...................................... 2,136,645
-----------
5,161,727
-----------
UTILITIES -- 1.99%
71,705 +AES Corp. .................................. 2,657,567
-----------
TOTAL COMMON STOCKS
(Cost $101,600,409).......................... 130,085,950
-----------
Principal
Amount
------
DEMAND NOTES -- 2.31%
$ 1,500,000 Associates Corp. of North America
Master Notes ............................... 1,500,000
1,584,000 General Electric Co.
Promissory Notes ........................... 1,584,000
-----------
TOTAL DEMAND NOTES
(Cost $3,084,000)............................ 3,084,000
-----------
TOTAL INVESTMENTS
(Cost $104,684,409) ............................ 99.81% $133,169,950
OTHER ASSETS AND
LIABILITIES (NET) ............................. 0.19 248,063
------ ------------
NET ASSETS ...................................... 100.00% $133,418,013
====== ============
- -------------------------
+ Non-income producing security
ADR -- American Depositary Receipt
See Notes to Financial Statements.
<PAGE>
Excelsior Institutional Trust
Schedule of Investments
September 30, 1998 (Unaudited)
Income Fund
Principal Coupon Maturity
Amount Rate Date Value
- ------------- ----------- --------- ----------
U.S. GOVERNMENT & AGENCY
OBLIGATIONS -- 54.32%
Federal Home Loan
Mortgage Corporation
$ 7,545 Pool #220001 .. . 10.75% 7/01/00 $ 8,032
4,130,000 Reference Notes ........ 5.75 7/15/03 4,302,787
660,000 Reference Notes ........ 5.75 4/15/08 696,517
Federal National
Mortgage Association
1,098,733 Pool #190748 ............ 5.50 4/01/01 1,097,359
4,569,604 Pool #251502 ............ 6.50 2/01/13 4,662,427
2,829,973 Pool #398283 ... ........ 6.00 3/01/28 2,823,784
1,549,169 Pool #420814 ............ 6.00 7/01/28 1,547,717
1,271,967 Pool #439102 .. . ....... 6.00 9/01/28 1,270,775
Government National
Mortgage Association
1,658,054 Pool #447651 ............ 7.50 6/15/27 1,717,123
967,910 Pool #471660 ............ 7.50 3/15/28 1,002,392
1,743,561 Pool #472028 ............ 6.50 5/15/28 1,780,612
1,778,283 Pool #475847 ............ 6.50 6/15/28 1,816,071
2,483,454 Pool #80205 ............. 5.00 6/20/28 2,486,799
1,250,000 Tennessee Valley
Authority, Put
Bond ................... 5.88 4/01/36 1,358,865
7,223,000 U.S. Treasury
Bonds .................. 7.25 5/15/16 8,981,353
----------
TOTAL U.S. GOVERNMENT &
AGENCY OBLIGATIONS
(Cost $34,272,640)............................ 35,552,613
----------
CORPORATE BONDS -- 18.43%
750,000 Caterpillar, Inc. ...... 9.38 7/15/01 832,046
1,150,000 Ford Motor Co. ....... 9.98 2/15/47 1,722,240
3,000,000 General Motors
Acceptance
Corp. .................. 7.50 7/24/00 3,109,401
2,000,000 +Goldman Sachs
Group .................. 6.60 7/15/02 2,036,414
<PAGE>
Principal Coupon Maturity
Amount Rate Date Value
- ------------- ---------- ----------- ----------
CORPORATE BONDS -- (continued)
$1,000,000 Morgan Stanley
Dean Witter &
Co. ................ 6.38% 8/01/02 $1,033,689
1,255,000 New Jersey Economic
Development
Authority, Revenue
Bonds, Series A...... 7.43 2/15/29 1,502,580
1,725,000 US Bank NA ........... 6.30 7/15/08 1,823,239
----------
TOTAL CORPORATE BONDS
(Cost $11,761,328).......................... 12,059,609
----------
ASSET BACKED SECURITIES -- 21.03%
1,714,024 Bear Stearns
Commercial
Mortgage
Securities, Series
98-C1, Class A1 ...... 6.34 10/16/07 1,771,753
1,000,000 California
Infrastructure, San
Diego Gas &
Electric Co., Series
97-1, Class A5 ........ 6.19 9/25/05 1,051,890
2,600,000 Caterpillar
Financial Asset
Trust, Series 98-A,
Class A3 .............. 5.85 4/25/03 2,636,946
1,920,000 ContiMortgage
Home Equity Loan
Trust, Series 97-5,
Class A4 .............. 6.58 6/15/19 1,979,523
2,406,507 First Union,
Lehman Brothers,
Bank of America,
Series 98-C2, Class
A1 .................... 6.28 6/18/07 2,480,339
843,752 Mortgage Capital
Funding, Inc.,
Series 98-MC1,
Class A1 .............. 6.42 6/18/07 874,380
See Notes to Financial Statements.
<PAGE>
Excelsior Institutional Trust
Schedule of Investments
September 30, 1998 (Unaudited)
Income Fund -- (continued)
Principal Coupon Maturity
Amount Rate Date Value
- ------------- ---------- --------- ----------
ASSET BACKED SECURITIES -- (continued)
$1,500,000 Mortgage Capital
Funding, Inc.,
Series 97-MC2,
Class A2 ............ 6.66% 9/20/07 $1,575,990
1,354,993 Nomura Asset
Securities Corp.,
Series 98-D6, Class
A1A ................. 6.28 3/17/28 1,395,588
----------
TOTAL ASSET BACKED SECURITIES
(Cost $13,432,620) ................... 13,766,409
----------
Shares Value
- --------- -----------
SHORT-TERM INVESTMENTS -- 5.69%
1,854,957 Dreyfus Government Cash
Management Fund .. . $ 1,854,957
1,866,008 Fidelity U.S. Treasury II Fund .............. 1,866,008
-----------
TOTAL SHORT-TERM
INVESTMENTS
(Cost $3,720,965)........................... 3,720,965
-----------
TOTAL INVESTMENTS
(Cost $63,187,553).......................... 99.47% $65,099,596
OTHER ASSETS AND
LIABILITIES (NET) .......................... 0.53 346,963
------ -----------
NET ASSETS .................................. 100.00% $65,446,559
====== ===========
- -------------------------
+ 144A Security - certain conditions for public sale may exist.
See Notes to Financial Statements.
<PAGE>
Excelsior Institutional Trust
Schedule of Investments
September 30, 1998 (Unaudited)
Total Return Bond Fund
<TABLE>
<CAPTION>
Principal Coupon Maturity
Amount Rate Date Value
- -------------- ------------- ---------------- -----------
<S> <C> <C> <C> <C>
U.S. GOVERNMENT & AGENCY
OBLIGATIONS -- 59.35%
Federal Home Loan
Mortgage Corporation
$ 6,980,000 Reference Notes ...... 5.75% 7/15/03 $ 7,272,022
8,595,000 Reference Notes ...... 5.75 4/15/08 9,070,553
Federal National
Mortgage Association
15,005,000 Benchmark Notes....... 5.75 4/15/03 15,620,580
3,448,876 Pool #431666 ......... 6.00 9/01/28 3,441,333
9,900,000 Pool #437434 ......... 6.00 9/01/28 9,878,349
5,219,587 Pool #440167 ......... 6.00 9/01/28 5,208,172
Government National
Mortgage Association
33,914 Pool #356873 ......... 6.50 5/15/23 34,634
4,191,458 Pool #80185 .......... 5.00 4/20/28 4,197,104
4,794,707 Pool #80198 .......... 5.50 5/20/28 4,823,175
4,989,218 Pool #471700 ......... 6.50 6/15/28 5,095,239
2,473,560 Pool #80205 .......... 5.00 6/20/28 2,476,892
39,974,000 U.S. Treasury
Bonds ............... 7.25 5/15/16 49,705,191
-----------
TOTAL U.S. GOVERNMENT &
AGENCY OBLIGATIONS
(Cost $110,000,976)................................. 116,823,244
-----------
CORPORATE BONDS -- 22.87%
2,300,000 American General
Finance,
Series D ............ 6.42 11/06/01 2,367,595
1,425,000 Amgen, Inc. .......... 8.13 4/01/2097 1,761,072
4,295,000 Associates Corp. of
North America,
Series 1 ............ 7.11 7/16/01 4,493,042
3,255,000 Banc One Corp. ....... 8.00 4/29/27 3,710,241
5,655,000 CIT Group
Holdings ............ 6.80 4/17/00 5,769,395
2,715,000 Equitable
Companies, Inc....... 6.50 4/01/08 2,813,549
5,250,000 +Goldman Sachs
Group ............... 6.60 7/15/02 5,345,587
3,895,000 McDonald's Corp....... 5.90 5/11/01 3,988,788
3,950,000 Morgan Stanley
Dean Witter &
Co. ................. 6.38 8/01/02 4,083,071
5,525,000 Nationsbank
Corp. ............... 8.13 6/15/02 6,007,581
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
Principal Coupon Maturity
Amount Rate Date Value
- -------------- ------------- ---------------- -----------
<S> <C> <C> <C> <C>
CORPORATE BONDS -- (continued)
$ 3,895,000 New Jersey
Economic
Development
Authority,
Revenue Bonds,
Series A ............ 7.43% 2/15/29 $ 4,663,386
-----------
TOTAL CORPORATE BONDS
(Cost $43,648,118).................................. 45,003,307
-----------
ASSET BACKED SECURITIES -- 14.62%
6,580,000 +AESOP Funding
II, Series 97-1,
Class A2 ............. 6.40 10/20/03 6,845,783
4,629,836 Bear Stearns
Commercial
Mortgage
Securities, Series
98-C1, Class A1 ...... 6.34 10/16/07 4,785,769
5,215,000 ContiMortgage
Home Equity Loan
Trust, Series 97-5,
Class A4 ............. 6.58 6/15/19 5,376,675
4,410,869 First Union,
Lehman Brothers,
Bank of America,
Series 98-C2, Class
A1 ................... 6.28 6/18/07 4,546,194
2,453,222 Mortgage Capital
Funding, Inc.,
Series 98-MC1,
Class A1 ............. 6.42 6/18/07 2,542,274
4,548,904 Nomura Asset
Securities Corp.,
Series 98-D6, Class
A1A .................. 6.28 3/17/28 4,685,189
-----------
TOTAL ASSET BACKED
SECURITIES (Cost $27,995,006)....................... 28,781,884
-----------
</TABLE>
See Notes to Financial Statements.
<PAGE>
Excelsior Institutional Trust
Schedule of Investments
September 30, 1998 (Unaudited)
Total Return Bond Fund -- (continued)
Shares Value
- ------------------------------- ------------
SHORT-TERM INVESTMENTS -- 2.09%
2,021,050 Dreyfus Government Cash
Management Fund ............................... $ 2,021,050
2,099,708 Fidelity U.S. Treasury II
Fund .......................................... 2,099,708
------------
TOTAL SHORT-TERM
INVESTMENTS
(Cost $4,120,758) ............... 4,120,758
------------
TOTAL INVESTMENTS
(Cost $185,764,858).......................... 98.93% $194,729,193
OTHER ASSETS AND
LIABILITIES (NET) ........................... 1.07 2,110,108
------ ------------
NET ASSETS ..................................... 100.00% $196,839,301
====== ============
- -------------------------
+ 144A Security - certain conditions for public sale may exist.
See Notes to Financial Statements.
<PAGE>
Excelsior Institutional Trust
Schedule of Investments
September 30, 1998 (Unaudited)
Balanced Fund
Shares Value
- ------------- ----------
COMMON STOCKS -- 55.90%
ENERGY -- 9.28%
10,700 Atlantic Richfield Co. ................ $ 759,031
45,000 Enron Oil & Gas Co. ................... 787,500
25,000 Halliburton Co. ....................... 714,063
30,000 Occidental Petroleum Corp. ............ 645,000
15,000 Repsol S.A. ADR ........................ 632,813
20,000 Tidewater, Inc. ....................... 415,000
25,000 Ultramar Diamond Shamrock
Corp. ................................. 568,750
30,000 YPF S.A. ADR ........................... 780,000
----------
5,302,157
----------
TECHNOLOGY -- 8.69%
43,000 +Andrew Corp. .......................... 569,750
32,000 +Arrow Electronics, Inc. ............... 420,000
44,000 Comdisco, Inc. ........................ 599,500
9,000 +Genentech, Inc. ....................... 646,875
10,000 Intel Corp. ........................... 857,500
21,000 +Marshall Industries .................... 463,312
18,000 Rockwell International Corp. .......... 650,250
9,000 Xerox Corp. ........................... 762,750
----------
4,969,937
----------
CONSUMER CYCLICAL -- 8.31%
39,000 Clayton Homes, Inc. ................... 682,500
20,000 Dillard's, Inc., Class A ............... 566,250
9,500 Eaton Corp. ........................... 595,531
13,500 Ford Motor Co. ........................ 633,656
11,000 General Motors Corp. .................. 601,563
11,500 Goodyear Tire & Rubber Co. ............ 590,813
12,000 J.C. Penney Co. ....................... 539,250
20,000 Standard Register Co. ................. 543,750
----------
4,753,313
----------
FINANCIAL -- 7.76%
15,000 Allstate Corp. ........................ 625,313
11,000 EXEL Ltd., Class A ..................... 693,000
10,000 Fannie Mae ............................. 642,500
20,000 KeyCorp ................................ 577,500
13,000 PNC Bank Corp. ........................ 585,000
15,000 Safeco Corp. .......................... 624,375
27,500 Washington Federal, Inc. .............. 687,500
----------
4,435,188
----------
CONSUMER STAPLES -- 5.09%
11,000 Allergan, Inc. ........................ 642,125
15,000 American Greetings Corp.,
Class A ............................... 593,437
16,000 C.R. Bard, Inc. ....................... 590,000
<PAGE>
Shares Value
- ----------- ----------
COMMON STOCKS -- (continued)
CONSUMER STAPLES -- (continued)
16,500 Dole Food Co., Inc. ................... $ 596,063
24,000 Mallinckrodt, Inc. .................... 487,500
----------
2,909,125
----------
TRANSPORTATION -- 4.93%
10,000 +AMR Corp. ............................. 554,375
6,000 Delta Air Lines, Inc. ................. 583,500
17,000 GATX Corp. ............................ 562,062
27,000 Knightsbridge Tankers Ltd. ............ 573,750
30,000 Teekay Shipping Corp. ................. 545,625
----------
2,819,312
----------
RAW/INTERMEDIATE
MATERIALS -- 4.42%
29,000 Millenium Chemicals Inc. .............. 540,125
28,000 Quanex Corp. .......................... 554,750
17,000 Weyerhaeuser Co. ...................... 717,187
25,000 Willamette Industries, Inc. ........... 717,188
----------
2,529,250
----------
CAPITAL GOODS -- 3.44%
17,000 Caterpillar, Inc. ..................... 757,562
16,000 Deere & Co. ........................... 484,000
18,000 +Gulfstream Aerospace Corp. ............ 724,500
----------
1,966,062
----------
UTILITIES -- 2.32%
12,000 Enron Corp. ........................... 633,750
10,000 Telebras ADR ........................... 690,000
----------
1,323,750
----------
REAL ESTATE INVESTMENT
TRUST -- 1.66%
20,000 Mack-Cali Realty Corp. ................ 600,000
35,000 Wilshire Real Estate Investment
Trust, Inc. ........................... 350,000
----------
950,000
----------
TOTAL COMMON STOCKS
(Cost $29,918,054) .................... 31,958,094
----------
See Notes to Financial Statements.
<PAGE>
Excelsior Institutional Trust
Schedule of Investments
September 30, 1998 (Unaudited)
Balanced Fund -- (continued)
Principal
Amount Value
- -------------- -----------
CORPORATE BONDS -- 21.83%
FINANCIAL -- 10.84%
$ 1,000,000 American General Corp.
7.75%, 4/01/05 ....................... $ 1,114,673
750,000 Conseco, Inc. 6.80%, 6/15/05 .......... 753,338
1,000,000 Ford Motor Credit Co.
6.125%, 4/28/03 ...................... 1,030,005
1,310,000 Safeco Corp. 7.875%, 4/01/05 .......... 1,428,704
750,000 Sunamerica, Inc. 6.75%, 10/01/07 803,859
1,000,000 Transamerica Corp.
6.75%, 11/15/06 ...................... 1,067,204
-----------
6,197,783
-----------
RAW/INTERMEDIATE
MATERIALS -- 5.61%
1,000,000 English China Clays plc
7.375%, 10/01/02 ..................... 1,082,106
1,250,000 Phelps Dodge Corp.
7.75%, 1/01/02 ....................... 1,351,431
750,000 Willamette Industries, Inc.
7.00%, 2/01/18 ....................... 775,337
-----------
3,208,874
-----------
UTILITIES -- 3.46%
575,000 Alabama Power Co.
7.00%, 1/01/03 ....................... 584,434
750,000 Citizens Utilities Co.
7.45%, 1/15/04 ....................... 827,815
500,000 Citizens Utilities Co.
7.60%, 6/01/06 ....................... 564,142
-----------
1,976,391
-----------
CONSUMER STAPLES -- 1.92%
1,000,000 Tenneco, Inc. 7.50%, 4/15/07 .......... 1,099,810
-----------
TOTAL CORPORATE BONDS
(Cost $11,923,443) ................... 12,482,858
-----------
U.S. GOVERNMENT & AGENCY
OBLIGATIONS -- 22.19%
750,000 Federal Home Loan Bank
7.50%, 4/26/04 ....................... 759,227
-----------
650,000 Federal Home Loan Mortgage
Corp.
6.40%, 12/13/06 ...................... 710,999
-----------
1,000,000 Federal National Mortgage
Association
7.50%, 4/16/07 ....................... 1,084,971
-----------
<PAGE>
Principal
Amount Value
- ----------- -----------
U.S. GOVERNMENT & AGENCY
OBLIGATIONS -- (continued)
$ 1,000,000 Financial Assistance Corp.
9.20%, 9/27/05 ........................ $ 1,085,594
-----------
U.S. Treasury Notes
1,250,000 7.50%, 10/31/99 ....................... 1,287,500
1,000,000 7.75%, 11/30/99 ....................... 1,035,313
750,000 6.375%, 5/15/00 ....................... 772,031
400,000 6.375%, 9/30/01 ....................... 421,875
500,000 6.25%, 10/31/01 ....................... 526,407
775,000 6.125%, 12/31/01 ...................... 815,203
750,000 6.625%, 3/31/02 ....................... 803,906
1,000,000 6.25%, 8/31/02 ........................ 1,066,250
1,000,000 7.50%, 2/15/05 ........................ 1,172,188
500,000 6.875%, 5/15/06 ....................... 577,969
500,000 6.50%, 10/15/06 ....................... 567,969
-----------
9,046,611
-----------
TOTAL U.S. GOVERNMENT &
AGENCY OBLIGATIONS
(Cost $12,255,397) ................... 12,687,402
-----------
TOTAL INVESTMENTS
(Cost $54,096,894)....................... 99.92% $57,128,354
OTHER ASSETS AND
LIABILITIES (NET) ....................... 0.08 44,512
------ -----------
NET ASSETS ................................ 100.00% $57,172,866
====== ===========
- -------------------------
+ Non-income producing security
ADR -- American Depositary Receipt
See Notes to Financial Statements.
<PAGE>
Excelsior Institutional Trust
Schedule of Investments
September 30, 1998 (Unaudited)
International Equity Fund
Shares Value
- ------------ ----------
COMMON STOCKS -- 91.50%
UNITED KINGDOM -- 18.48%
18,100 Glaxo Wellcome plc ADR ............... $1,033,963
40,000 Pearson plc .......................... 744,430
45,000 Railtrack Group plc .................. 1,297,143
210,000 Rentokil Initial plc ................. 1,295,613
78,700 Rio Tinto plc (Registered) ........... 938,322
125,000 WPP Group plc ........................ 576,274
----------
5,885,745
----------
SWITZERLAND -- 14.48%
5,100 ABB AG (Registered) .................. 1,056,650
15,000 Nestle S.A. ADR (Registered) ......... 1,492,077
650 Novartis AG (Registered) ............. 1,044,878
3,000 SGS Holdings S.A. ................... 575,920
2,261 UBS AG (Registered) .................. 442,241
----------
4,611,766
----------
NETHERLANDS -- 12.18%
13,400 IHC Caland N.V. ..................... 626,101
17,000 ING Groep N.V. ....................... 766,327
28,000 Royal Dutch Petroleum Co. ............ 1,333,500
6,000 Wolters Kluwer N.V. ................. 1,152,278
----------
3,878,206
----------
JAPAN -- 11.45%
73,000 +Atlantis Japan Growth Fund Ltd. ...... 226,300
40,000 Canon, Inc. .......................... 811,722
45,000 Denso Co. ............................ 654,396
14,200 Hirose Electric ...................... 729,245
43,000 Kurita Water Industries, Ltd. ........ 447,326
100,000 Mitsubishi Corp. .................... 483,516
33,000 Tokio Marine & Fire Insurance
Co. ................................ 294,945
----------
3,647,450
----------
FRANCE -- 6.68%
19,590 Financiere et Industrielle Gaz et
Eaux ................................ 923,761
20,000 Michelin, Class B .................... 785,911
7,500 Societe BIC SA ....................... 418,096
----------
2,127,768
----------
HONG KONG -- 5.88%
150,000 Hutchison Whampoa Ltd. ............... 789,851
355,000 Johnson Electric Holdings Ltd. ...... 673,503
254,000 Li & Fung, Ltd. ..................... 409,767
----------
1,873,121
----------
<PAGE>
Shares Value
- ---------- ----------
COMMON STOCKS -- (continued)
SWEDEN -- 3.65%
30,000 Investor AB, Class B ................. $1,163,711
----------
GERMANY -- 3.22%
1,700 Allianz AG (Registered) .............. 526,477
23 +Allianz AG (New) ..................... 7,123
7,000 SGL Carbon AG ........................ 490,595
----------
1,024,195
----------
CANADA -- 2.31%
48,300 Imperial Oil Ltd. ................... 736,575
----------
MEXICO -- 2.13%
390,000 Desc S.A. de C.V., Series B .......... 294,788
167,800 Kimberly-Clark de Mexico, SA de
CV .................................. 382,973
----------
677,761
----------
SINGAPORE -- 2.11%
99,000 Acer Computer International Ltd. 25,245
234,000 Courts Singapore Ltd. ................ 38,861
147,300 Development Bank of Singapore
Ltd. ................................ 594,093
2,000 +Singapore Sesdaq Fund Ltd. .......... 13,000
----------
671,199
----------
SPAIN -- 2.08%
23,400 Banco Intercontinental Espana
(Registered) ........................ 661,175
----------
BERMUDA -- 1.89%
15,000 Partner Re Ltd. ...................... 600,937
----------
THAILAND -- 1.39%
45,800 +The Siam Cement Co., Ltd. ............ 441,166
----------
ARGENTINA -- 1.07%
41,300 Quilmes Industrial S.A.
(Registered) ........................ 340,725
----------
ITALY -- 1.05%
30,000 Luxottica Group S.p.A. ADR ........... 335,625
----------
SOUTH AFRICA -- 1.03%
203,218 LibLife Strategic Investments Ltd. ... 328,720
----------
IRELAND -- 0.42%
10,000 +CBT Group plc ADR .................... 135,000
----------
TOTAL COMMON STOCKS
(Cost $31,377,611) .................. 29,140,845
----------
See Notes to Financial Statements.
<PAGE>
Excelsior Institutional Trust
Schedule of Investments
September 30, 1998 (Unaudited)
International Equity Fund -- (continued)
No. of
Warrants Value
- ------------- ---------
WARRANTS -- 0.01%
JAPAN -- 0.01%
13,000 +Atlantis Japan Growth Fund Ltd.,
$10.00 exercise price,
expiring 4/30/01 ................. $ 1,105
---------
SINGAPORE -- 0.00%
20,000 +Acer Computer International Ltd.,
$1.56 exercise price,
expiring 7/31/01 ................. 900
---------
TOTAL WARRANTS
(Cost $17,787) ................... 2,005
---------
Principal
Amount
- ----------
DEMAND NOTES -- 8.76%
$1,400,000 Associates Corp. of North America
Master Notes ..................... 1,400,000
1,390,000 General Electric Co. Promissory
Notes ............................ 1,390,000
---------
TOTAL DEMAND NOTES
(Cost $2,790,000) ................ 2,790,000
---------
TOTAL INVESTMENTS
(Cost $34,185,398).............. 100.27% $31,932,850
OTHER ASSETS AND
LIABILITIES (NET) .............. ( 0.27) (85,932)
------ -----------
NET ASSETS ....................... 100.00% $31,846,918
====== ===========
- -------------------------
+ Non-income producing security
ADR -- American Depositary Receipt
<PAGE>
At September 30, 1998, sector diversification of the Fund's investment
portfolio was as follows:
% of
Net Market
Sector Diversification Assets Value
- ---------------------- ------ -----------
Financial .................................. 25.61% $ 8,156,011
Consumer Staples ........................... 15.29 4,870,663
Consumer Cyclical .......................... 13.68 4,357,190
Capital Goods .............................. 12.31 3,920,654
Demand Notes ............................... 8.76 2,790,000
Energy ..................................... 7.57 2,410,800
Raw/Intermediate Materials ................. 6.80 2,164,871
Technology ................................. 4.81 1,530,732
Transportation ............................. 1.97 626,102
Utilities .................................. 1.40 447,326
Manufacturing .............................. 1.31 418,096
Investment Companies ....................... 0.76 240,405
------ -----------
Total Investments ..................... 100.27% $31,932,850
Other Assets and Liabilities (Net) ......... ( 0.27) (85,932)
------ -----------
Net Assets ............................ 100.00% $31,846,918
====== ===========
See Notes to Financial Statements.
<PAGE>
Excelsior Institutional Trust
Schedule of Investments
September 30, 1998 (Unaudited)
Optimum Growth Fund
Shares Value
- ------------ ----------
COMMON STOCKS -- 99.53%
TECHNOLOGY -- 39.70%
33,000 America Online, Inc. ............... $3,671,250
25,000 +BMC Software, Inc. ................. 1,500,000
54,000 +Cisco Systems, Inc. ................ 3,337,875
74,000 +Dell Computer Corp. ................ 4,865,500
57,000 +EMC Corp. .......................... 3,259,687
30,000 Intel Corp. ........................ 2,572,500
6,000 +MCI WorldCom, Inc. ................. 293,250
41,000 Medtronic, Inc. .................... 2,372,875
27,000 +Microsoft Corp. .................... 2,971,688
----------
24,844,625
----------
CONSUMER STAPLES -- 23.04%
12,000 Abbott Laboratories ................. 521,250
10,000 American Home Products Corp. ........ 523,750
11,000 Bestfoods ........................... 532,813
4,000 Bristol-Meyers Squibb Co. .......... 415,500
4,000 Brown-Forman Corp., Class B ......... 240,000
25,000 Coca-Cola Co. ...................... 1,440,625
6,000 Eli Lilly & Co. .................... 469,875
21,700 General Mills, Inc. ................ 1,519,000
30,000 Gillette Co. ....................... 1,147,500
7,000 H.J. Heinz Co. ..................... 357,875
10,000 Johnson & Johnson ................... 782,500
11,500 Merck & Co., Inc. ................... 1,489,969
23,000 Pfizer, Inc. ....................... 2,436,562
7,800 Procter & Gamble Co. ............... 553,312
3,000 Quaker Oats Co. .................... 177,000
12,000 Ralston-Ralston Purina Group ........ 351,000
6,000 Sara Lee Corp. ...................... 324,000
5,200 Schering-Plough Corp. .............. 538,525
8,240 Tootsie Roll Industries, Inc. ...... 290,460
4,000 Wrigley (WM.) Jr. Co. .............. 303,750
----------
14,415,266
----------
CONSUMER CYCLICAL -- 12.91%
7,000 Hannaford Brothers Co. ............. 295,750
52,000 Home Depot, Inc. ................... 2,054,000
5,000 McDonald's Corp. ................... 298,437
27,000 +PeopleSoft, Inc. ................... 880,875
29,000 +Quintiles Transnational Corp. ...... 1,268,750
4,000 Sears, Roebuck and Co. ............. 176,750
40,000 +Sylvan Learning Systems, Inc. ...... 920,000
4,500 Time Warner, Inc. .................. 394,031
10,000 Wal-Mart Stores, Inc. ............... 546,250
35,000 Walt Disney Co. .................... 885,938
700 Washington Post Co., Class B ........ 357,700
----------
8,078,481
----------
<PAGE>
Shares Value
- ---------- ----------
COMMON STOCKS -- (continued)
FINANCIAL -- 11.96%
19,500 American International
Group, Inc. ........................ $1,501,500
45,000 Charles Schwab Corp. ............... 1,771,875
12,000 Citicorp ............................ 1,115,250
29,700 Fannie Mae .......................... 1,908,225
25,000 Merrill Lynch & Co., Inc. .......... 1,184,375
----------
7,481,225
----------
TELECOMMUNICATIONS -- 4.38%
3,500 +AirTouch Communications, Inc. ....... 199,500
10,000 Ameritech Corp. .................... 473,750
12,500 GTE Corp. ........................... 687,500
7,324 Lucent Technologies, Inc. .......... 505,814
22,000 +Tellabs, Inc. ...................... 875,875
----------
2,742,439
----------
CAPITAL GOODS -- 3.05%
24,000 General Electric Co. ............... 1,909,500
----------
TRANSPORTATION -- 1.64%
35,000 Harley-Davidson, Inc. .............. 1,028,125
----------
UTILITY -- 1.27%
17,000 Texas Utilities Co. ................ 791,562
----------
ENERGY -- 0.87%
7,000 Anadarko Petroleum Corp. ........... 275,188
6,000 Vastar Resources, Inc. ............. 270,000
----------
545,188
----------
MANUFACTURING -- 0.71%
10,800 Baker Hughes, Inc. ................. 226,125
3,000 Minnesota Mining and
Manufacturing Co. .................. 221,063
----------
447,188
----------
TOTAL COMMON STOCKS
(Cost $38,898,208) ................. 62,283,599
----------
Principal
Amount
- ------------
DEMAND NOTES -- 0.79%
$ 494,000 General Electric Co. Promissory
Notes (Cost $494,000) .............. 494,000
----------
TOTAL INVESTMENTS
(Cost $39,392,208) ............... 100.32% $62,777,599
OTHER ASSETS AND
LIABILITIES (NET) ................ ( 0.32) (203,242)
------ -----------
NET ASSETS ......................... 100.00% $62,574,357
====== ===========
- -------------------------
+ Non-income producing security
See Notes to Financial Statements.
<PAGE>
Excelsior Institutional Trust
Schedule of Investments
September 30, 1998 (Unaudited)
Value Equity Fund
Shares Value
- ------------- ----------
COMMON STOCKS -- 100.30%
CONSUMER STAPLES -- 26.62%
21,000 Avon Products, Inc. .................... $ 589,313
20,000 Bestfoods ............................... 968,750
13,000 Bristol-Meyers Squibb Co. .............. 1,350,375
15,000 Deluxe Corp. ........................... 426,563
14,000 Eastman Kodak Co. ...................... 1,082,375
29,625 Fort James Corp. ....................... 972,070
32,000 Philip Morris Companies, Inc. .......... 1,474,000
46,500 +Styling Technology Corp. ............... 831,187
8,000 +Suiza Foods Corp. ...................... 250,000
----------
7,944,633
----------
FINANCIAL -- 20.80%
41,000 +Amerin Corp. ........................... 761,063
35,000 ARM Financial Group, Inc.,
Class A ................................ 621,250
65,000 Castellum AB ............................ 642,784
20,000 Chase Manhattan Corp. .................. 865,000
16,344 EXEL Ltd., Class A ...................... 1,029,672
12,000 Fannie Mae .............................. 771,000
12,000 Long Island Bancorp, Inc. .............. 576,000
12,000 People's Bank Bridgeport ................ 292,500
20,000 SLM Holding Corp. ...................... 648,750
----------
6,208,019
----------
TECHNOLOGY -- 20.40%
16,000 Alcatel SA ADR .......................... 272,000
25,000 +Bell & Howell Co. ...................... 648,438
12,000 International Business Machines
Corp. ................................. 1,536,000
24,000 Nokia Corp., Class A ADR ................ 1,882,500
10,000 +QUALCOMM, Inc. ......................... 479,375
15,000 Xerox Corp. ............................ 1,271,250
----------
6,089,563
----------
CONSUMER CYCLICAL -- 9.46%
15,000 CBS Corp. .............................. 363,750
50,000 +Elder-Beerman Stores Corp. ............. 868,750
22,000 Ford Motor Co. ......................... 1,032,625
19,700 +Young & Rubicam, Inc. .................. 558,988
----------
2,824,113
----------
<PAGE>
Shares Value
- ------------- ----------
COMMON STOCKS -- (continued)
CAPITAL GOODS -- 9.19%
25,000 +American Standard Companies,
Inc. .................................. $ 659,375
25,000 Boeing Co. ............................. 857,812
20,000 Kansas City Southern Industries,
Inc. .................................. 700,000
10,000 Texas Instruments, Inc. ................ 527,500
----------
2,744,687
----------
RAW/INTERMEDIATE
MATERIALS -- 4.29%
10,000 E.I. du Pont de Nemours and
Co. ................................... 561,250
25,000 Olin Corp. ............................. 717,187
----------
1,278,437
----------
UTILITY -- 3.67%
40,000 Frontier Corp. ......................... 1,095,000
----------
TELECOMMUNICATIONS -- 2.68%
2,500 +Leap Wireless International,
Inc. .................................. 11,563
44,000 +Tele-Communications TCI
Ventures Group ......................... 786,500
----------
798,063
----------
TRANSPORTATION -- 2.43%
17,000 Union Pacific Corp. .................... 724,625
----------
ENERGY -- 0.76%
3,000 Mobil Corp. ............................ 227,812
----------
TOTAL COMMON STOCKS
(Cost $25,758,909) .................... 29,934,952
----------
Principal
Amount
- ----------
DEMAND NOTES -- 0.19%
$ 56,000 General Electric Co. Promissory
Notes (Cost $56,000) .................. 56,000
----------
TOTAL INVESTMENTS
(Cost $25,814,909) ................... 100.49% $29,990,952
OTHER ASSETS AND
LIABILITIES (NET) .................... ( 0.49) (146,805)
------ -----------
NET ASSETS ............................. 100.00% $29,844,147
====== ===========
- -------------------------
+ Non-income producing security
ADR -- American Depositary Receipt
See Notes to Financial Statements.
<PAGE>
Excelsior Institutional Trust
Statements of Assets and Liabilities
September 30, 1998 (Unaudited)
<TABLE>
<CAPTION>
Total Return
Equity Income Bond
Fund Fund Fund
----------------- ---------------- -----------------
<S> <C> <C> <C>
Assets:
Investments, at cost -- see accompanying
Schedule of Investments ........................................... $ 104,684,409 $ 63,187,553 $ 185,764,858
============= ============ =============
Investments in securities, at value (Note 1a) ...................... $ 133,169,950 $ 65,099,596 $ 194,729,193
Cash ............................................................... -- -- --
Dividends and interest receivable .................................. 151,659 690,496 3,120,584
Receivable for investment securities sold .......................... -- -- 87,510
Receivable for fund shares sold .................................... 327,994 -- 8,865
Deferred organization expenses (Note 1f) ........................... 1,181 867 1,471
Other assets ....................................................... 2,724 1,334 3,836
------------- ------------ -------------
Total assets ...................................................... 133,653,508 65,792,293 197,951,459
Liabilities:
Payable for investments purchased .................................. -- -- --
Dividends payable .................................................. -- 300,028 878,083
Payable for fund shares redeemed ................................... 81,832 -- 69,745
Investment advisory fees payable (Note 2a) ......................... 45,385 11,637 38,048
Administration fees payable (Note 2b) .............................. 15,880 8,253 24,923
Trustees' fees and expenses payable (Note 2f) ...................... 3,085 1,039 3,546
Due to custodian bank .............................................. 62,192 13,842 53,196
Accrued expenses and other liabilities ............................. 27,121 10,935 44,617
------------- ------------ -------------
Total liabilities ................................................. 235,495 345,734 1,112,158
------------- ------------ -------------
Net Assets .......................................................... $ 133,418,013 $ 65,446,559 $ 196,839,301
============= ============ =============
Net Assets Consist of:
Paid-in capital .................................................... $ 99,789,662 $ 61,566,609 $ 183,912,277
Undistributed (distributions in excess of) net investment income . 50,946 (22,348) 35,243
Accumulated net realized gain on investments ....................... 5,091,864 1,990,255 3,927,446
Net unrealized appreciation of investments ......................... 28,485,541 1,912,043 8,964,335
------------- ------------ -------------
Net Assets .......................................................... $ 133,418,013 $ 65,446,559 $ 196,839,301
============= ============ =============
Institutional Shares outstanding (Unlimited number of $0.00001 par
value shares authorized for each Fund) ............................. 11,856,620 8,743,004 25,101,180
Net Asset Value Per Share (net assets / shares outstanding) ......... $ 11.25 $ 7.49 $ 7.84
============= ============ =============
</TABLE>
See Notes to Financial Statements.
<PAGE>
Excelsior Institutional Trust
Statements of Assets and Liabilities -- (continued)
September 30, 1998 (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 .................................... $ 54,096,894 $ 34,185,398 $ 39,392,208 $ 25,814,909
============= ============ ============ =============
Investments in securities, at value (Note 1a) ............... $ 57,128,354 $ 31,932,850 $ 62,777,599 $ 29,990,952
Cash ........................................................ -- -- 1,446 3,704
Dividends and interest receivable ........................... 578,398 112,549 48,993 39,171
Receivable for investment securities sold ................... 331,694 651,192 -- --
Receivable for fund shares sold ............................. 208,931 7,170 28,357 3,957
Foreign withholding tax receivable .......................... -- 32,572 -- --
Deferred organization expenses (Note 1f) .................... 5,342 842 646 646
Other assets ................................................ 2,261 509 889 713
------------- ------------ ------------ -------------
Total assets ............................................... 58,254,980 32,737,684 62,857,930 30,039,143
Liabilities:
Payable for investments purchased ........................... -- 617,174 -- 167,975
Payable for fund shares redeemed ............................ 430,341 -- 200,759 --
Investment advisory fees payable (Note 2a) .................. 66,042 37,362 21,040 8,634
Administration fees payable (Note 2b) ....................... 9,741 5,397 7,849 3,828
Trustees' fees and expenses payable (Note 2f) ............... 2,341 1,250 1,292 1,176
Due to custodian bank ....................................... 488,623 208,522 -- --
Accrued expenses and other liabilities ...................... 85,026 21,061 52,633 13,383
------------- ------------ ------------ -------------
Total liabilities .......................................... 1,082,114 890,766 283,573 194,996
------------- ------------ ------------ -------------
Net Assets ................................................... $ 57,172,866 $ 31,846,918 $ 62,574,357 $ 29,844,147
============= ============ ============ =============
Net Assets Consist of:
Paid-in capital ............................................. $ 47,247,594 $ 33,453,589 $ 41,110,078 $ 22,898,026
Undistributed (distributions in excess of)
net investment income ...................................... 31,385 (316,197) (2,931) 6,612
Accumulated net realized gain (loss) on investments ......... 6,862,427 960,429 (1,918,181) 2,763,466
Net unrealized appreciation (depreciation) of investments ... 3,031,460 (2,250,903) 23,385,391 4,176,043
------------- ------------ ------------ -------------
Net Assets ................................................... $ 57,172,866 $ 31,846,918 $ 62,574,357 $ 29,844,147
============= ============ ============ =============
Net Assets:
Institutional Shares ........................................ $ 57,165,167 $ 31,846,918 $ 55,850,943 $ 29,779,303
Trust Shares ................................................ 7,699 -- 6,723,414 64,844
Shares outstanding (Unlimited number of $0.00001 par value
shares authorized for each Fund):
Institutional Shares ........................................ 7,333,241 4,047,493 3,338,124 2,234,505
Trust Shares ................................................ 987 -- 403,140 4,862
Net Asset Value Per Share (net assets / shares outstanding):
Institutional Shares ........................................ $ 7.80 $ 7.87 $ 16.73 $ 13.33
============= ============ ============ =============
Trust Shares ................................................ $ 7.80 -- $ 16.68 $ 13.34
============= ============ ============ =============
</TABLE>
See Notes to Financial Statements.
<PAGE>
Excelsior Institutional Trust
Statements of Operations
For the Six Months Ended September 30, 1998 (Unaudited)
<TABLE>
<CAPTION>
Total Return
Equity Income Bond
Fund Fund Fund
---------------- -------------- ----------------
<S> <C> <C> <C>
Investment Income
Dividend income ...................... $ 715,964 $ -- $ --
Interest income ...................... 51,755 1,931,358 5,776,707
Less: Foreign taxes withheld ......... -- -- --
------------- ---------- ------------
Total Income ........................ 767,719 1,931,358 5,776,707
Expenses (Note 1g):
Investment advisory fees
(Note 2a) ........................... 466,152 204,064 609,257
Administrative fees (Note 2b) ........ 109,725 48,034 143,410
Custodian fees ....................... 22,336 13,052 29,724
Legal fees ........................... 14,530 6,103 18,120
Prospectus and shareholder
reports ............................. 6,777 2,907 8,643
Trustees' fees and expenses
(Note 2f) ........................... 5,593 2,441 7,012
Auditing fees ........................ 4,437 1,603 5,543
Transfer agent fees .................. 2,157 2,460 2,296
Insurance expense .................... 1,195 556 1,694
Registration fees .................... 1,731 908 985
Amortization of organization
expenses (Note 1f) .................. 619 871 724
Distribution fees -- Trust Shares
(Note 2e) ........................... -- -- --
Miscellaneous ........................ 5,184 2,559 5,811
------------- ---------- ------------
Total Expenses ...................... 640,436 285,558 833,219
Less: Waiver of fees
(Note 2c) .......................... (138,427) (128,585) (364,265)
------------- ---------- ------------
Net Expenses ........................ 502,009 156,973 468,954
------------- ---------- ------------
Net Investment Income ................. 265,710 1,774,385 5,307,753
------------- ---------- ------------
Realized and Unrealized Gain (Loss)
(Note 1):
Net realized gain on investments ..... 2,355,866 1,007,058 2,334,448
Net realized gain (loss) on foreign
currency transactions ............... -- -- --
Net change in unrealized
appreciation/depreciation
of investments during the
period (a) .......................... (20,078,752) 1,246,113 5,944,535
------------- ---------- ------------
Net Realized and Unrealized Gain
(Loss) ............................... (17,722,886) 2,253,171 8,278,983
------------- ---------- ------------
Net Increase (Decrease) in Net
Assets Resulting from Operations...... $ (17,457,176) $4,027,556 $ 13,586,736
============= ========== ============
------------
(a) Includes net change in
unrealized appreciation/
depreciation of foreign
currency ............................ -- -- --
</TABLE>
<PAGE>
(RESTUBBED TABLE)
<TABLE>
<CAPTION>
International Optimum Value
Balanced Equity Growth Equity
Fund Fund Fund Fund
---------------- ----------------- -------------- -----------------
<S> <C> <C> <C> <C>
Investment Income
Dividend income ...................... $ 498,216 $ 631,776 $ 216,747 $ 241,239
Interest income ...................... 1,212,728 40,370 18,776 2,038
Less: Foreign taxes withheld ......... -- (59,360) -- --
------------- ------------- ---------- -------------
Total Income ........................ 1,710,944 612,786 235,523 243,277
Expenses (Note 1g):
Investment advisory fees
(Note 2a) ........................... 272,982 190,714 206,053 110,921
Administrative fees (Note 2b) ........ 64,256 38,143 48,502 26,109
Custodian fees ....................... 13,835 30,216 10,532 6,935
Legal fees ........................... 7,812 4,020 6,589 4,770
Prospectus and shareholder
reports ............................. 10,814 4,985 11,045 6,012
Trustees' fees and expenses
(Note 2f) ........................... 3,658 1,829 2,553 1,804
Auditing fees ........................ 2,543 1,004 1,324 410
Transfer agent fees .................. 3,971 3,198 5,218 3,314
Insurance expense .................... 986 632 613 307
Registration fees .................... 2,446 1,017 7,944 7,091
Amortization of organization
expenses (Note 1f) .................. 2,849 604 123 123
Distribution fees -- Trust Shares
(Note 2e) ........................... 33,127 -- 12,626 132
Miscellaneous ........................ 4,198 2,146 2,879 1,484
------------- ------------- ---------- -------------
Total Expenses ...................... 423,477 278,508 316,001 169,412
Less: Waiver of fees
(Note 2c) .......................... (96,370) (106,799) (81,562) (50,218)
------------- ------------- ---------- -------------
Net Expenses ........................ 327,107 171,709 234,439 119,194
------------- ------------- ---------- -------------
Net Investment Income ................. 1,383,837 441,077 1,084 124,083
------------- ------------- ---------- -------------
Realized and Unrealized Gain (Loss)
(Note 1):
Net realized gain on investments ..... 2,727,089 962,993 587,610 2,154,508
Net realized gain (loss) on foreign
currency transactions ............... -- (16,164) -- 6,857
Net change in unrealized
appreciation/depreciation
of investments during the
period (a) .......................... (14,072,035) (8,045,913) 542,280 (8,348,583)
------------- ------------- ---------- -------------
Net Realized and Unrealized Gain
(Loss) ............................... (11,344,946) (7,099,084) 1,129,890 (6,187,218)
------------- ------------- ---------- -------------
Net Increase (Decrease) in Net
Assets Resulting from Operations...... $ (9,961,109) $ (6,658,007) $1,130,974 $ (6,063,135)
============= ============= ========== =============
------------
(a) Includes net change in
unrealized appreciation/
depreciation of foreign
currency ............................ -- $ 3,711 -- --
</TABLE>
See Notes to Financial Statements.
<PAGE>
Excelsior Institutional Trust
Statements of Changes in Net Assets
<TABLE>
<CAPTION>
Equity Fund
----------------------------------
Six Months
Ended Year
September 30, Ended
1998 March 31,
(Unaudited) 1998
---------------- ----------------
<S> <C> <C>
Operations:
Net investment income ................. $ 265,710 $ 577,988
Net realized gain on
investments .......................... 2,355,866 13,078,300
Net change in unrealized
appreciation/depreciation of
investments during the
period ............................... (20,078,752) 39,624,075
------------- -------------
Net increase (decrease) in
net assets resulting from
operations ......................... (17,457,176) 53,280,363
Distributions to Shareholders:
From net investment income ............ (329,295) (644,350)
In excess of net investment
income ............................... -- --
From net realized gains ............... -- (15,372,442)
------------- -------------
Total distributions to
shareholders ....................... (329,295) (16,016,792)
------------- -------------
Transactions in Shares of Beneficial
Interest:
Net proceeds from shares sold ......... 25,642,242 33,699,430
Contribution in-kind .................. -- --
Reinvestment of dividends ............. 7,322 405,457
Cost of shares redeemed ............... (12,773,177) (51,602,372)
------------- -------------
Net increase (decrease) in
net assets from beneficial
interest transactions .............. 12,876,387 (17,497,485)
------------- -------------
Total Increase (Decrease)
in Net Assets ..................... (4,910,084) 19,766,086
Net Assets:
Beginning of Period ................... 138,328,097 118,562,011
------------- -------------
End of Period (a) ..................... $ 133,418,013 $ 138,328,097
============= =============
Capital Share Transactions:
Institutional Shares sold ............. 1,956,272 3,017,785
Contribution in-kind .................. -- --
Institutional Shares issued for
dividend reinvestment ................ 580 37,320
Institutional Shares redeemed ......... (996,938) (4,449,056)
------------- -------------
Net Increase (Decrease) in Shares
Outstanding ........................... 959,914 (1,393,951)
============= =============
------------
(a) Including undistributed
(distributions in excess of) net
investment income .................. $ 50,946 $ 114,531
</TABLE>
<PAGE>
(RESTUBBED TABLE)
<TABLE>
<CAPTION>
Income Fund Total Return Bond Fund
-------------------------------- ---------------------------------
Six Months Six Months
Ended Year Ended Year
September 30, Ended September 30, Ended
1998 March 31, 1998 March 31,
(Unaudited) 1998 (Unaudited) 1998
--------------- --------------- ---------------- ---------------
<S> <C> <C> <C> <C>
Operations:
Net investment income ................. $ 1,774,385 $ 3,303,028 $ 5,307,753 $ 8,940,752
Net realized gain on
investments .......................... 1,007,058 990,393 2,334,448 2,353,952
Net change in unrealized
appreciation/depreciation of
investments during the
period ............................... 1,246,113 1,583,858 5,944,535 5,697,218
------------ ------------ ------------- -------------
Net increase (decrease) in
net assets resulting from
operations ......................... 4,027,556 5,877,279 13,586,736 16,991,922
Distributions to Shareholders:
From net investment income ............ (1,793,204) (3,299,499) (5,307,762) (8,941,053)
In excess of net investment
income ............................... -- (3,529) -- --
From net realized gains ............... -- (183,152) -- (1,220,129)
------------ ------------ ------------- -------------
Total distributions to
shareholders ....................... (1,793,204) (3,486,180) (5,307,762) (10,161,182)
------------ ------------ ------------- -------------
Transactions in Shares of Beneficial
Interest:
Net proceeds from shares sold ......... 1,912,452 12,191,434 30,459,923 49,920,677
Contribution in-kind .................. -- -- 12,430,061 --
Reinvestment of dividends ............. -- -- 48,847 134,539
Cost of shares redeemed ............... (74,394) (4,290,648) (22,089,759) (27,577,046)
------------ ------------ ------------- -------------
Net increase (decrease) in
net assets from beneficial
interest transactions .............. 1,838,058 7,900,786 20,849,072 22,478,170
------------ ------------ ------------- -------------
Total Increase (Decrease)
in Net Assets ..................... 4,072,410 10,291,885 29,128,046 29,308,910
Net Assets:
Beginning of Period ................... 61,374,149 51,082,264 167,711,255 138,402,345
------------ ------------ ------------- -------------
End of Period (a) ..................... $ 65,446,559 $ 61,374,149 $ 196,839,301 $ 167,711,255
============ ============ ============= =============
Capital Share Transactions:
Institutional Shares sold ............. 261,549 1,695,891 4,024,725 6,736,023
Contribution in-kind .................. -- -- 1,646,253 --
Institutional Shares issued for
dividend reinvestment ................ -- -- 6,453 18,167
Institutional Shares redeemed ......... (10,126) (610,049) (2,921,797) (3,735,567)
------------ ------------ ------------- -------------
Net Increase (Decrease) in Shares
Outstanding ........................... 251,423 1,085,842 2,755,634 3,018,623
============ ============ ============= =============
------------
(a) Including undistributed
(distributions in excess of) net
investment income .................. $ (22,348) $ (3,529) $ 35,243 $ 35,252
</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 Year Ended Year
September 30, Ended September 30, Ended
1998 March 31, 1998 March 31,
(Unaudited) 1998 (Unaudited) 1998
--------------- --------------- --------------- ---------------
<S> <C> <C> <C> <C>
Operations:
Net investment income .................................. $ 1,383,837 $ 3,368,479 $ 441,077 $ 458,891
Net realized gain on investments ....................... 2,727,089 12,929,382 962,993 487,012
Net realized loss on foreign currency transactions ..... -- -- (16,164) (37,743)
Net change in unrealized
appreciation/depreciation of investments
during the period ..................................... (14,072,035) 5,190,357 (8,045,913) 2,474,310
------------- ------------- ------------ -------------
Net increase (decrease) in net assets resulting
from operations .................................... (9,961,109) 21,488,218 (6,658,007) 3,382,470
Distributions to Shareholders:
From net investment income
Institutional Shares .................................. (1,648,374) (3,042,093) (646,625) (318,203)
Trust Shares .......................................... (430,453) (319,761) -- --
In excess of net investment income
Institutional Shares .................................. -- -- -- (110,649)
From net realized gains
Institutional Shares .................................. -- (7,725,226) -- (661,743)
Trust Shares .......................................... -- (1,876,320) -- --
------------- ------------- ------------ -------------
Total distributions to shareholders .................. (2,078,827) (12,963,400) (646,625) (1,090,595)
------------- ------------- ------------ -------------
Transactions in Shares of Beneficial Interest:
Net proceeds from shares sold
Institutional Shares .................................. 5,821,172 21,742,743 5,998,169 23,093,069
Trust Shares .......................................... 703,946 20,319,193 -- --
Reinvestment of dividends
Institutional Shares .................................. 727 3,590 -- 8,515
Trust Shares .......................................... 291,746 2,196,081 -- --
Cost of shares redeemed
Institutional Shares .................................. (8,752,209) (57,967,499) (7,282,973) (23,426,766)
Trust Shares .......................................... (18,755,099) (1,878,906) -- --
------------- ------------- ------------ -------------
Net decrease in net assets from beneficial
interest transactions .............................. (20,689,717) (15,584,798) (1,284,804) (325,182)
------------- ------------- ------------ -------------
Total Increase (Decrease) in Net Assets ............ (32,729,653) (7,059,980) (8,589,436) 1,966,693
Net Assets:
Beginning of Period .................................... 89,902,519 96,962,499 40,436,354 38,469,661
------------- ------------- ------------ -------------
End of Period (a) ...................................... $ 57,172,866 $ 89,902,519 $ 31,846,918 $ 40,436,354
============= ============= ============ =============
Capital Share Transactions:
Shares sold:
Institutional Shares .................................. 676,033 2,483,939 641,113 2,482,442
Trust Shares (b) ...................................... 79,974 2,179,728 -- --
Shares issued for dividend reinvestment:
Institutional Shares .................................. 85 418 -- 877
Trust Shares (b) ...................................... 32,759 256,143 -- --
Shares redeemed:
Institutional Shares .................................. (1,019,272) (6,477,987) (775,228) (2,564,182)
Trust Shares (b) ...................................... (2,342,728) (204,889) -- --
------------- ------------- ------------ -------------
Net Decrease in Shares Outstanding ...................... (2,573,149) (1,762,648) (134,115) (80,863)
============= ============= ============ =============
------------
(a) Including undistributed (distributions in
excess of) net investment income .................... $ 31,385 $ 726,375 $ (316,197) $ (110,649)
(b) Initial offering of Trust Shares commenced
on August 25, 1997 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 Value Equity Fund
-------------------------------- -------------------------------
Six Months Six Months
Ended Year Ended Year
September 30, Ended September 30, Ended
1998 March 31, 1998 March 31,
(Unaudited) 1998 (Unaudited) 1998
--------------- --------------- --------------- --------------
<S> <C> <C> <C> <C>
Operations:
Net investment income ........................................ $ 1,084 $ 81,809 $ 124,083 $ 243,228
Net realized gain (loss) on investments ...................... 587,610 (2,090,039) 2,161,365 2,142,877
Net change in unrealized appreciation/depreciation of
investments during the period ............................... 542,280 22,166,451 (8,348,583) 9,909,167
------------ ------------ ------------ ------------
Net increase (decrease) in net assets resulting from
operations ............................................... 1,130,974 20,158,221 (6,063,135) 12,295,272
Distributions to Shareholders:
From net investment income
Institutional Shares ........................................ (10,786) (123,146) (181,161) (230,995)
Trust Shares ................................................ -- (4,167) (185) (363)
From net realized gains
Institutional Shares ........................................ -- -- -- (1,695,764)
Trust Shares ................................................ -- -- -- (5,580)
------------ ------------ ------------ ------------
Total distributions to shareholders ........................ (10,786) (127,313) (181,346) (1,932,702)
------------ ------------ ------------ ------------
Transactions in Shares of Beneficial Interest:
Net proceeds from shares sold
Institutional Shares ........................................ 5,922,972 8,293,581 1,665,255 1,679,381
Trust Shares ................................................ 595,744 2,776,946 352 31,723
Reinvestment of dividends
Institutional Shares ........................................ 569 4,030 -- --
Trust Shares ................................................ -- 875 48 1,672
Cost of shares redeemed
Institutional Shares ........................................ (2,519,803) (1,722,710) (420,501) (937,737)
Trust Shares ................................................ (587,841) (1,880,728) -- (37,415)
------------ ------------ ------------ ------------
Net increase in net assets from beneficial interest
transactions ............................................. 3,411,641 7,471,994 1,245,154 737,624
------------ ------------ ------------ ------------
Total Increase (Decrease) in Net Assets .................. 4,531,829 27,502,902 (4,999,327) 11,100,194
Net Assets:
Beginning of Period .......................................... 58,042,528 30,539,626 34,843,474 23,743,280
------------ ------------ ------------ ------------
End of Period (a) ............................................ $ 62,574,357 $ 58,042,528 $ 29,844,147 $ 34,843,474
============ ============ ============ ============
Capital Share Transactions:
Shares Sold:
Institutional Shares ........................................ 335,395 614,403 106,766 131,715
Trust Shares ................................................ 34,978 210,824 23 2,111
Shares issued for dividend reinvestment:
Institutional Shares ........................................ 35 332 -- --
Trust Shares ................................................ -- 83 3 123
Shares redeemed:
Institutional Shares ........................................ (147,302) (132,059) (29,282) (65,278)
Trust Shares ................................................ (36,571) (135,970) -- (2,373)
------------ ------------ ------------ ------------
Net Increase in Shares Outstanding ............................ 186,535 557,613 77,510 66,298
============ ============ ============ ============
------------
(a) Including undistributed (distributions in excess of) net
investment income ......................................... $ (2,931) $ 6,771 $ 6,612 $ 63,875
</TABLE>
See Notes to Financial Statements.
<PAGE>
Excelsior Institutional Trust
Financial Highlights
Selected data for a share outstanding throughout each period are as follows:
<TABLE>
<CAPTION>
Equity Fund
---------------------------------------------------------------------------------
Six Months
Ended Ten Months January 16,
September 30, Year Ended Ended Year Ended 1995(b) to
1998 March 31, March 31, May 31, May 31,
(Unaudited) 1998 1997(a) 1996 1995
------------------- ------------ ---------------- ------------ ----------------
<S> <C> <C> <C> <C> <C>
Net Asset Value, Beginning of Period ....... $ 12.69 $ 9.65 $ 8.93 $ 7.73 $ 7.00
-------- -------- --------- ------ ---------
Investment Operations:
Net investment income ..................... 0.02 0.05 0.05 0.11 0.05
Net realized and unrealized gain (loss)
on investments ........................... (1.43) 4.67 0.86 1.20 0.70
-------- ------- --------- ------ ---------
Total From Investment Operations ......... (1.41) 4.72 0.91 1.31 0.75
-------- ------- --------- ------ ---------
Distributions:
From net investment income ................ (0.03) (0.06) (0.07) (0.11) (0.02)
In excess of net investment income ........ -- -- -- -- --
From net realized gains ................... -- (1.62) (0.12) -- --
-------- -------- --------- ------- ---------
Total Distributions ...................... (0.03) (1.68) (0.19) (0.11) (0.02)
-------- -------- --------- ------- ---------
Net Asset Value, End of Period ............. $ 11.25 $ 12.69 $ 9.65 $ 8.93 $ 7.73
======== ======== ========= ======= =========
Total Return ............................... (11.14)%(c) 51.58% 10.22%(c) 17.04% 10.80%(c)
======== ======== ========= ======= =========
Ratios and Supplemental Data:
Ratios to Average Net Assets
Net Expenses .............................. 0.70%(e) 0.70% 0.70%(e) 0.36% 0.12%(e)
Gross Expenses (d) ........................ 0.89%(e) 0.90% 0.92%(e) 1.49% 2.67%(e)
Net Investment Income ..................... 0.37%(e) 0.46% 0.70%(e) 1.32% 2.44%(e)
Portfolio Turnover ......................... 18%(e) 26% 32%(e) 113% 34%(e)
Net Assets at end of Period
(000's omitted) ........................... $133,418 $138,328 $118,562 $23,495 $15,409
</TABLE>
<PAGE>
(RESTUBBED TABLE)
<TABLE>
<CAPTION>
Income Fund
---------------------------------------------------------------------------------
Six Months
Ended Ten Months January 16,
September 30, Year Ended Ended Year Ended 1995(b) to
1998 March 31, March 31, May 31, May 31,
(Unaudited) 1998 1997(a) 1996 1995
------------------- ------------ ---------------- ------------ ----------------
<S> <C> <C> <C> <C> <C>
Net Asset Value, Beginning of Period ....... $ 7.23 $ 6.90 $ 6.99 $ 7.33 $ 7.00
-------- --------- --------- ------- ---------
Investment Operations:
Net investment income ..................... 0.21 0.44 0.38 0.51 0.19
Net realized and unrealized gain (loss)
on investments ........................... 0.26 0.35 (0.01) (0.27) 0.33
-------- --------- --------- ------- ---------
Total From Investment Operations ......... 0.47 0.79 0.37 0.24 0.52
-------- --------- --------- ------- ---------
Distributions:
From net investment income ................ (0.21) (0.44) (0.38) (0.51) (0.19)
In excess of net investment income ........ -- --(f) -- -- --
From net realized gains ................... -- (0.02) (0.08) (0.07) --
-------- --------- --------- ------- ---------
Total Distributions ...................... (0.21) (0.46) (0.46) (0.58) (0.19)
-------- --------- --------- ------- ---------
Net Asset Value, End of Period ............. $ 7.49 $ 7.23 $ 6.90 $ 6.99 $ 7.33
======== ========= ========= ======= =========
Total Return ............................... 6.59%(c) 11.78% 5.39%(c) 3.18% 7.51%(c)
======== ========= ========= ======= =========
Ratios and Supplemental Data:
Ratios to Average Net Assets
Net Expenses .............................. 0.50%(e) 0.50% 0.50%(e) 0.26% 0.12%(e)
Gross Expenses (d) ........................ 0.91%(e) 0.91% 0.96%(e) 1.35% 1.65%(e)
Net Investment Income ..................... 5.65%(e) 6.14% 6.50%(e) 6.99% 7.17%(e)
Portfolio Turnover ......................... 200%(e) 190% 107%(e) 67% 34%(e)
Net Assets at end of Period
(000's omitted) ........................... $65,447 $61,374 $51,082 $24,001 $33,230
</TABLE>
-------------
(a) The Fund changed its fiscal year end to March 31.
(b) Commencement of Operations
(c) Not annualized
(d) Expense ratios before waiver of fees and reimbursement of expenses, if any,
by the adviser and administrators.
(e) Annualized
(f) Amount represents less than $0.01 per share.
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>
Total Return Bond Fund
--------------------------------------------------------------------------------
Six Months
Ended Ten Months January 19,
September 30, Year Ended Ended Year Ended 1995(b) to
1998 March 31, March 31, May 31, May 31,
(Unaudited) 1998 1997(a) 1996 1995
------------------ ------------ ---------------- ------------ --------------
<S> <C> <C> <C> <C> <C>
Net Asset Value, Beginning of Period ....... $ 7.51 $ 7.16 $ 7.18 $ 7.47 $ 7.00
---------- ------- --------- ------- ----------
Investment Operations:
Net investment income ..................... 0.22 0.44 0.37 0.48 0.18
Net realized and unrealized gain (loss)
on investments ........................... 0.33 0.41 0.01 (0.17) 0.47
---------- ------- --------- ------- ----------
Total From Investment Operations ......... 0.55 0.85 0.38 0.31 0.65
---------- ------- --------- ------- ----------
Distributions:
From net investment income ................ (0.22) (0.44) (0.37) (0.48) (0.18)
In excess of net investment income ........ -- -- -- -- --
From net realized gains ................... -- (0.06) (0.03) (0.12) --
---------- -------- --------- ------- ----------
Total Distributions ...................... (0.22) (0.50) (0.40) (0.60) (0.18)
---------- -------- --------- ------- ----------
Net Asset Value, End of Period ............. $ 7.84 $ 7.51 $ 7.16 $ 7.18 $ 7.47
========== ======== ========= ======= ==========
Total Return ............................... 7.38%(c) 12.21% 5.29%(c) 4.20% 9.40%(c)
========== ======== ========= ======= ==========
Ratios and Supplemental Data:
Ratios to Average Net Assets
Net Expenses .............................. 0.50%(e) 0.50% 0.50%(e) 0.32% 0.12%(e)
Gross Expenses (d) ........................ 0.89%(e) 0.90% 0.92%(e) 1.33% 1.93%(e)
Net Investment Income ..................... 5.66%(e) 5.95% 6.08%(e) 6.47% 7.09%(e)
Portfolio Turnover ......................... 201%(e) 196% 200%(e) 127% 84%(e)
Net Assets at end of Period
(000's omitted) ........................... $ 196,839 $167,711 $ 138,402 $65,017 $ 24,913
</TABLE>
<PAGE>
(RESTUBBED TABLE)
<TABLE>
<CAPTION>
Balanced Fund
----------------------------------------------------------------------------------
Six Months
Ended Ten Months July 11,
September 30, Year Ended Ended Year Ended 1994(b) to
1998+ March 31, March 31, May 31, May 31,
(Unaudited) 1998 1997(a) 1996 1995
------------------ ------------ ---------------- ------------ -----------
<S> <C> <C> <C>
Net Asset Value, Beginning of Period ....... $9.08 $ 8.31 $ 8.26 $ 7.70 $ 7.00
------- ------ ------- ------- -------
Investment Operations:
Net investment income ..................... 0.15 0.33 0.26 0.34 0.35
Net realized and unrealized gain (loss)
on investments ........................... (1.21) 1.66 0.40 0.78 0.64
------- ------ ------- ------- -------
Total From Investment Operations ......... (1.06) 1.99 0.66 1.12 0.99
------- ------ ------- ------- -------
Distributions:
From net investment income ................ (0.22) (0.30) (0.28) (0.36) (0.26)
In excess of net investment income ........ -- -- -- -- --
From net realized gains ................... -- (0.92) (0.33) (0.20) (0.03)
------- ------ ------- ------- -------
Total Distributions ...................... (0.22) (1.22) (0.61) (0.56) (0.29)
------- ------ ------- ------- -------
Net Asset Value, End of Period ............. $ 7.80 $ 9.08 $ 8.31 $ 8.26 $ 7.70
======= ======= ======= ======= =======
Total Return ............................... (11.087)%(c) 25.12% 8.20%(c) 15.07% 14.59%(c)
======= ======= ======= ======= =======
Ratios and Supplemental Data:
Ratios to Average Net Assets
Net Expenses .............................. 0.70%(e) 0.70% 0.70%(e) 0.38% 0.12%(e)
Gross Expenses (d) ........................ 0.93%(e) 0.92% 0.93%(e) 1.21% 1.32%(e)
Net Investment Income ..................... 3.38%(e) 3.57% 3.84%(e) 4.34% 5.55%(e)
Portfolio Turnover ......................... 44%(e) 75% 53%(e) 56% 57%(e)
Net Assets at end of Period
(000's omitted) ........................... $57,165 $69,667 $96,962 $95,638 $74,478
</TABLE>
----------
(a) The Fund changed its fiscal year end to March 31.
(b) Commencement of Operations
(c) Not annualized
(d) Expense ratios before waiver of fees and reimbursement of
expenses, if any, by the adviser and administrators.
(e) Annualized
+ For comparative purposes per share amounts for the six months
ended September 30, 1998 are based on average shares outstanding.
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, Year Ended Ended Year Ended 1995(b) to
1998 March 31, March 31, May 31, May 31,
(Unaudited) 1998 1997(a) 1996 1995
------------------- ------------ ---------------- ------------ ----------------
<S> <C> <C> <C> <C> <C>
Net Asset Value, Beginning
of Period ..................... $ 9.67 $ 9.03 $ 8.99 $ 7.88 $ 7.00
----------- ------- --------- ------ ---------
Investment Operations:
Net investment income ......... 0.11 0.09 0.01 0.09 0.08
Net realized and
unrealized gain (loss)
on investments ............... (1.75) 0.79 0.21 1.20 0.80
----------- ------ --------- ------ ---------
Total From Investment
Operations ................... (1.64) 0.88 0.22 1.29 0.88
----------- ------ --------- ------ ---------
Distributions:
From net investment
income ....................... (0.16) (0.07) (0.06) (0.12) --
In excess of net
investment income ............ -- (0.02) (0.03) -- --
From net realized gains ....... -- (0.15) (0.09) (0.06) --
----------- ------- --------- ------- ---------
Total Distributions .......... (0.16) (0.24) (0.18) (0.18) --
----------- ------- --------- ------- ---------
Net Asset Value, End of
Period ........................ $ 7.87 $ 9.67 $ 9.03 $ 8.99 $ 7.88
=========== ======= ========= ======= =========
Total Return ................... (17.25)%(c) 9.90% 2.41%(c) 16.58% 12.57%(c)
=========== ======= ========= ======= =========
Ratios and Supplemental
Data:
Ratios to Average Net Assets
Net Expenses .................. 0.90%(e) 0.90% 0.90%(e) 0.60% 0.25%(e)
Gross Expenses (d) ............ 1.46%(e) 1.43% 1.49%(e) 2.05% 3.32%(e)
Net Investment Income ......... 2.32%(e) 1.05% 0.45%(e) 1.71% 3.47%(e)
Portfolio Turnover ............. 29%(e) 52% 45%(e) 19% 8%(e)
Net Assets at end of Period
(000's omitted) ............... $ 31,847 $40,436 $ 38,470 $24,522 $ 8,804
</TABLE>
<PAGE>
(RESTUBBED TABLE)
<TABLE>
<CAPTION>
Optimum Growth Fund Value Equity Fund
---------------------------------------------- --------------------------------------------
Six Months Six Months
Ended June 1, Ended June 1,
September 30, Year Ended 1996(b) to September 30, Year Ended 1996(b) to
1998 March 31, March 31, 1998 March 31, March 31,
(Unaudited) 1998 1997 (Unaudited) 1998 1997
--------------- ------------ --------------- ----------------- --------------------------
<S> <C> <C> <C> <C> <C> <C>
Net Asset Value, Beginning
of Period ..................... $ 16.33 $ 10.19 $ 10.00 $ 16.12 $ 11.33 $ 10.00
-------- ------- --------- ---------- ------- --------
Investment Operations:
Net investment income ......... --(f) 0.03 0.05 0.06 0.11 0.08
Net realized and
unrealized gain (loss)
on investments ............... 0.40 6.15 0.17 (2.77) 5.59 1.31
-------- ------- --------- ---------- ------- --------
Total From Investment
Operations .................. 0.40 6.18 0.22 (2.71) 5.70 1.39
-------- ------- --------- ---------- ------- --------
Distributions:
From net investment
income ....................... --(f) (0.04) (0.03) (0.08) (0.11) (0.06)
In excess of net
investment income ............ -- -- -- -- -- --
From net realized gains ....... -- -- -- -- (0.80) --
-------- ------- --------- ---------- ------- --------
Total Distributions .......... --(f) (0.04) (0.03) (0.08) (0.91) (0.06)
-------- ------- --------- ---------- ------- --------
Net Asset Value, End of
Period ........................ $ 16.73 $ 16.33 $ 10.19 $ 13.33 $ 16.12 $ 11.33
======== ======= ========= ========== ======= ========
Total Return ................... 2.47%(c) 60.85% 2.23%(c) (16.86)%(c) 51.67% 13.91%(c)
======== ======= ========= ========== ======= ========
Ratios and Supplemental
Data:
Ratios to Average Net Assets
Net Expenses .................. 0.70%(e) 0.70% 0.70%(e) 0.70%(e) 0.70% 0.70%(e)
Gross Expenses (d) ............ 0.96%(e) 0.97% 1.11%(e) 0.99%(e) 1.00% 1.12%(e)
Net Investment Income ......... 0.04%(e) 0.23% 0.66%(e) 0.73%(e) 0.81% 0.94%(e)
Portfolio Turnover ............. 17%(e) 19% 20%(e) 57%(e) 51% 64%(e)
Net Assets at end of Period
(000's omitted) ............... $ 55,851 $51,441 $ 27,183 $ 29,779 $34,766 $ 23,687
</TABLE>
----------
(a) The Fund changed its fiscal year end to March 31.
(b) Commencement of Operations
(c) Not annualized
(d) Expense ratios before waiver of fees and reimbursement of expenses, if
any, by the adviser and administrators.
(e) Annualized
(f) Amount represents less than $0.01 per share.
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. The Trust currently offers shares in
the following seven funds (each a "Fund", collectively, the "Funds"), each
having its own investment objectives and policies: 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. At September 30, 1998, International Equity Fund has not issued Trust
Shares. The Financial Highlights of the Trust Shares are presented in a
separate semi-annual report.
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 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.
<PAGE>
Excelsior Institutional Trust
Notes to Financial Statements (Unaudited) -- (Continued)
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 is recorded as unrealized appreciation or
depreciation. Realized gains and losses arising from such transactions are
included in net realized gains or losses from foreign currency transactions.
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 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 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 net capital losses incurred after October 31 and
within the taxable year ("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 adviser
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 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 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, 1998, the following Fund had approximate capital loss
carryforwards for federal tax purposes available to offset future net capital
gains through the indicated expiration dates:
Expiration Date March 31,
---------------------------
2005 2006
----------- -------------
Optimum Growth Fund .............................. $404,322 $1,089,198
<PAGE>
Excelsior Institutional Trust
Notes to Financial Statements (Unaudited) -- (Continued)
At September 30, 1998, 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 ......... $104,684,409 $63,187,553 $185,764,858 $ 54,096,894 $ 34,185,398 $39,392,208 $ 25,814,909
============ =========== ============ ============ ============ =========== ============
Gross unrealized
appreciation .......... $ 35,640,384 $ 1,912,043 $ 8,968,179 $ 7,098,276 $ 4,802,676 $24,324,529 $ 6,567,973
------------ ----------- ------------ ------------ ------------ ----------- ------------
Gross unrealized
depreciation .......... (7,154,843) -- (3,844) (4,066,816) (7,055,224) (939,138) (2,391,930)
------------ ----------- ------------ ------------ ------------ ----------- ------------
Net unrealized
appreciation
(depreciation) ........ $ 28,485,541 $ 1,912,043 $ 8,964,335 $ 3,031,460 $ (2,252,548) $23,385,391 $ 4,176,043
============ =========== ============ ============ ============ =========== ============
</TABLE>
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 adviser 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.
U.S. Trust Company, N.A. ("U.S. Trust, N.A.") serves as the investment
adviser to the Balanced Fund and International Equity Fund. U.S. Trust, N.A.
has delegated the daily management of the security holdings of these Funds to
the investment managers named below, acting as sub-advisers:
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, N.A. 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, N.A. and
each sub-adviser, sub-advisory fees are payable monthly by U.S. Trust, N.A.,
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-advisers are compensated only by U.S. Trust, N.A., and
receive no fee directly from the Funds. Prior to June 22, 1998, United States
Trust Company of The Pacific Northwest served as the investment adviser to the
Balanced Fund and International Equity Fund pursuant to investment advisory
agreements substantially similar to those currently in effect for Balanced Fund
and International Equity Fund.
U.S. Trust NY, U.S. Trust CT and U.S. Trust, N.A. are wholly-owned
subsidiaries of U.S. Trust Corporation, a registered bank holding company.
<PAGE>
Excelsior Institutional Trust
Notes to Financial Statements (Unaudited) -- (Continued)
b) U.S. Trust CT, Chase Global Funds Services Company, a corporate
affiliate of The Chase Manhattan Bank, and Federated Administrative Services, a
wholly-owned subsidiary of Federated Investors, Inc., (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 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%. For the six months ended September 30, 1998,
administration fees charged by U.S. Trust CT were as follows:
Equity Fund ....................................................... $25,650
Income Fund ....................................................... $11,237
Total Return Bond Fund ............................................ $33,570
Balanced Fund ..................................................... $15,004
International Equity Fund ......................................... $15,875
Optimum Growth Fund ............................................... $11,352
Value Equity Fund ................................................. $ 6,098
c) From time to time, as they may deem appropriate in their sole
discretion, U.S. Trust, U.S. Trust, N.A. 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, N.A. 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 Institutional
Shares of the International Equity Fund; and not more than certain specified
annual percentages of average daily net assets of the Trust Shares of the
Balanced Fund, Optimum Growth Fund and Value Equity Fund. For the six months
ended September 30, 1998, U.S. Trust voluntarily waived fees in the following
amounts:
Equity Fund ....................................................... $138,427
Income Fund ....................................................... $128,585
Total Return Bond Fund ............................................ $364,265
Balanced Fund ..................................................... $ 96,370
International Equity Fund ......................................... $106,799
Optimum Growth Fund ............................................... $ 81,562
Value Equity Fund ................................................. $ 50,218
<PAGE>
Excelsior Institutional Trust
Notes to Financial Statements (Unaudited) -- (Continued)
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 organization's 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. U.S.
Trust, U.S. Trust, N.A. and the Administrators intend to voluntarily waive
investment advisory and administration fees payable by each Fund in an amount
equal to the administrative service fees payable by such Fund. For the six
months ended September 30, 1998, no administrative service fees have been
charged to the Funds.
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
Balanced Fund, International Equity Fund, Optimum Growth Fund and Value Equity
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 persons" under the Act,
receive no compensation from the Trust for their services.
3. Purchases and Sales of Investment Securities.
a) Investment transactions (excluding short-term investments) for the six
months ended September 30, 1998 were as follows:
Cost of Proceeds
Purchases From Sales
-------------- ------------
Equity Fund .............................. $ 25,091,124 $ 12,603,323
Income Fund .............................. $ 64,154,350 $ 58,949,830
Total Return Bond Fund ................... $194,491,894 $175,408,117
Balanced Fund ............................ $ 17,678,921 $ 36,942,000
International Equity Fund ................ $ 5,204,608 $ 8,608,679
Optimum Growth Fund ...................... $ 9,161,108 $ 5,146,046
Value Equity Fund ........................ $ 10,919,787 $ 9,672,562
<PAGE>
Excelsior Institutional Trust
Notes to Financial Statements (Unaudited) -- (Continued)
b) Investment transactions in U.S. Government and Agency Obligations
(excluding short-term investments) for the six months ended September 30, 1998
were as follows:
Cost of Proceeds
Purchases From Sales
-------------- ------------
Equity Fund .............................. -- --
Income Fund .............................. $ 17,029,679 $34,596,817
Total Return Bond Fund ................... $130,088,797 $97,730,958
Balanced Fund ............................ $ 4,739,097 $ 8,177,131
International Equity Fund ................ -- --
Optimum Growth Fund ...................... -- --
Value Equity Fund ........................ -- --
4. Line of Credit:
The Portfolios and other affiliated funds participate in a $250 million
unsecured line of credit provided by a syndication of banks under a line of
credit agreement. Borrowings may be made to temporarily finance the repurchase
of Portfolio shares. Interest is charged to each Portfolio, based on its
borrowings, at a rate equal to the Federal Funds Rate plus 2% per year. In
addition, a commitment fee, based on the average daily unused portion of the
line of credit, is allocated among the participating Portfolios at the end of
each quarter. For the six months ended September 30, 1998, the Portfolios had
no borrowings under the agreement.
