<PAGE>
Investment Advisers
United States Trust Company of New York
114 West 47th Street
New York, NY 10036
U.S. Trust Company
225 High Ridge Road
Stamford, CT 06905
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 EXITIS SA99
[GRAPHIC OMITTED]
Institutional Shares
EQUITY FUND
INCOME FUND
TOTAL RETURN BOND FUND
INTERNATIONAL EQUITY FUND
OPTIMUM GROWTH FUND
VALUE EQUITY FUND
Semi-Annual Report
September 30, 1999
<PAGE>
Excelsior Institutional Trust
Schedule of Investments
September 30, 1999 (Unaudited)
Equity Fund
<TABLE>
<CAPTION>
Shares Value
- ------------------------ -----------------
<S> <C> <C>
COMMON STOCKS -- 98.59%
TECHNOLOGY -- 29.14%
200 +Ariba, Inc. ............................ $ 28,888
4,458 +At Home Corp., Series A ................ 184,728
151,710 +Cisco Systems, Inc. .................... 10,392,135
300 Digital Insight Corp. .................. 4,500
34,592 +EMC Corp. .............................. 2,471,166
19,966 Honeywell, Inc. ........................ 2,222,465
107,310 Intel Corp. ............................ 7,974,474
35,065 International Business Machines
Corp. ................................. 4,256,014
400 +LookSmart Ltd. ......................... 9,525
40,977 Lucent Technologies, Inc. .............. 2,658,383
800 +Luminant Worldwide Corp. ............... 24,600
142,606 +Microsoft Corp. ........................ 12,914,756
19,036 +Nextel Communications, Inc.,
Class A ............................... 1,290,879
19,584 Nokia Oyj, Class A, ADR ................ 1,758,888
150 +Phone.com, Inc. ........................ 22,697
33,728 +Sun Microsystems, Inc. ................. 3,136,704
22,062 Texas Instruments, Inc. ................ 1,814,600
4,000 Williams Communications Group,
Inc. .................................. 92,000
30,247 Xerox Corp. ............................ 1,268,484
1,991 +Yahoo!, Inc. ........................... 357,011
----------
52,882,897
----------
FINANCIAL -- 15.42%
57,004 American International Group,
Inc. .................................. 4,955,785
48,056 Associates First Capital Corp.,
Class A ............................... 1,730,016
29,727 Capital One Financial Corp. ............ 1,159,353
81,526 Citigroup, Inc. ........................ 3,587,144
133,282 Firstar Corp. .......................... 3,415,351
28,151 Household International, Inc. .......... 1,129,559
108,432 Mellon Bank Corp. ...................... 3,659,580
35,003 Morgan Stanley Dean Witter &
Co. ................................... 3,121,830
43,314 Schwab (Charles) Corp. ................. 1,459,141
94,960 Wells Fargo Co. ........................ 3,762,790
----------
27,980,549
----------
CONSUMER STAPLES -- 11.85%
69,508 Bestfoods .............................. 3,371,138
59,257 Coca-Cola Co. .......................... 2,848,039
87,988 Gillette Co. ........................... 2,986,093
92,226 Mattel, Inc. ........................... 1,752,294
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
Shares Value
- ------------------------ -----------------
<S> <C> <C>
COMMON STOCKS -- (continued)
CONSUMER STAPLES -- (continued)
44,105 Procter & Gamble Co. ................... $4,134,844
105,710 Time Warner, Inc. ...................... 6,421,882
----------
21,514,290
----------
CONSUMER CYCLICAL -- 10.96%
400 +Agile Software Corp. ................... 25,600
400 +AirGate PCS, Inc. ...................... 9,950
800 +Alteon Websystems, Inc. ................ 75,600
4,029 +Amazon.com, Inc. ....................... 322,068
45,105 +AT&T Corp. - Liberty Media
Group, Class A ........................ 1,674,523
1,000 +Bluestone Software, Inc. ............... 23,125
800 +Broadbase Software, Inc. ............... 12,700
200 +Brocade Communications
Systems, Inc. ......................... 42,100
79,522 +CBS Corp. .............................. 3,677,892
400 +E.piphany, Inc. ........................ 19,500
2,042 +eBay, Inc. ............................. 287,922
400 +eGain Communications Corp. ............. 7,375
19,814 Ford Motor Co. ......................... 994,415
1,400 +Foundry Networks, Inc. ................. 176,400
400 +FreeShop.com ........................... 4,600
18,911 +General Motors Corp., Class H .......... 1,082,655
41,254 Home Depot, Inc. ....................... 2,831,056
500 +Internap Network Services Corp. . 22,312
400 +Kana Communications, Inc. .............. 19,950
700 +Keynote Systems, Inc. .................. 17,500
2,500 +Loislaw.com, Inc. ...................... 36,250
81,362 McDonald's Corp. ....................... 3,498,566
1,000 +Medscape, Inc. ......................... 10,125
400 +Netro Corp. ............................ 10,950
950 +NetSolve, Inc. ......................... 16,863
600 +NetZero, Inc. .......................... 15,563
600 +Red Hat, Inc. .......................... 57,562
77,240 Stewart Enterprises, Inc.,
Class A ............................... 465,854
300 +Vitria Technology, Inc. ................ 10,969
93,205 Wal-Mart Stores, Inc. .................. 4,433,063
----------
19,883,008
----------
HEALTH CARE -- 10.75%
53,877 Bristol-Myers Squibb Co. ............... 3,636,698
43,242 Medtronic, Inc. ........................ 1,535,091
44,022 Merck & Co., Inc. ...................... 2,853,176
187,018 Pfizer, Inc. ........................... 6,720,959
109,055 Schering-Plough Corp. .................. 4,757,524
----------
19,503,448
----------
</TABLE>
See Notes to Financial Statements.
<PAGE>
Excelsior Institutional Trust
Schedule of Investments
September 30, 1999 (Unaudited)
Equity Fund -- (continued)
<TABLE>
<CAPTION>
Shares Value
- --------- --------------
<S> <C> <C>
COMMON STOCKS -- (continued)
ENERGY -- 7.13%
28,311 BP Amoco plc ADR .................... $ 3,137,213
39,256 Burlington Resources, Inc. .......... 1,442,658
42,670 Mobil Corp. ......................... 4,299,002
68,856 Royal Dutch Petroleum Co. ........... 4,066,808
-----------
12,945,681
-----------
COMMUNICATION
SERVICES -- 6.77%
2,500 Acme Communications, Inc. ........... 77,500
18,646 +America Online, Inc. ................ 1,939,184
53,470 AT&T Corp. .......................... 2,325,945
150 +Copper Mountain Networks,
Inc. ............................... 13,125
83,027 +MCI WorldCom, Inc. .................. 5,962,377
38,421 SBC Communications, Inc. ............ 1,961,872
-----------
12,280,003
-----------
CAPITAL GOODS -- 6.57%
63,562 General Electric Co. ................ 7,536,069
58,814 Illinois Tool Works, Inc. ........... 4,385,319
-----------
11,921,388
-----------
TOTAL COMMON STOCKS
(Cost $121,186,179) ................ 178,911,264
-----------
Principal
Amount
- -------------
DEMAND NOTES -- 1.33%
$1,000,000 Associates Corp. of North America
Master Notes .................. 1,000,000
1,417,000 General Electric Co. Promissory
Notes ......................... 1,417,000
---------
TOTAL DEMAND NOTES
(Cost $2,417,000) ............. 2,417,000
---------
TOTAL INVESTMENTS
(Cost $123,603,179) ......... 99.92% $181,328,264
OTHER ASSETS AND
LIABILITIES (NET) .......... 0.08 148,159
------ ------------
NET ASSETS ................... 100.00% $181,476,423
====== ============
</TABLE>
- -------------------------
+ Non-income producing security
ADR--American Depositary Receipt
See Notes to Financial Statements.
<PAGE>
Excelsior Institutional Trust
Schedule of Investments
September 30, 1999 (Unaudited)
Income Fund
<TABLE>
<CAPTION>
Principal Coupon Maturity
Amount Rate Date Value
- ------------------ -------------- ---------------- ---------------
<S> <C> <C> <C> <C>
U.S. GOVERNMENT & AGENCY
OBLIGATIONS -- 61.39%
Federal Home Loan
Mortgage Corporation
$ 6,195 Pool #220001 ............... 10.75 % 7/01/00 $ 6,315
Federal National
Mortgage Association
1,230,000 Benchmark Notes ............ 5.13 2/13/04 1,170,366
2,325,000 Benchmark Notes ............ 5.25 1/15/09 2,095,067
1,602,122 Pool #323854 ............... 6.03 6/01/09 1,508,670
3,768,469 Pool #251502 ............... 6.50 2/01/13 3,697,403
12,971 Pool #454758 ............... 5.50 12/01/28 11,700
3,200,428 Pool #494540 ............... 5.50 3/01/29 2,886,626
625,387 Pool #496120 ............... 7.00 4/01/29 614,848
5,318,871 Pool #504052 ............... 7.00 6/01/29 5,229,233
Government National
Mortgage Association
2,209,196 Pool #781036 ............... 8.00 10/15/17 2,260,094
767,865 Pool #471660 ............... 7.50 3/15/28 770,620
1,603,360 Pool #472028 ............... 6.50 5/15/28 1,533,040
1,690,842 Pool #475847 ............... 6.50 6/15/28 1,616,685
2,184,046 Pool #80205 ................ 5.00 6/20/28 2,178,130
3,769,178 Pool #2687 ................. 6.00 12/20/28 3,487,952
3,897,413 Pool #503711 ............... 7.00 5/15/29 3,826,858
1,198,618 Pool #80311 ................ 5.50 8/20/29 1,183,415
10,138,000 U.S. Treasury Bonds ........ 7.25 5/15/16 10,958,549
1,363,736 U.S. Treasury Inflation
Index Bonds ............... 3.88 4/15/29 1,317,710
----------
TOTAL U.S. GOVERNMENT &
AGENCY OBLIGATIONS
(Cost $47,790,980)......................................... 46,353,281
----------
ASSET BACKED SECURITIES -- 14.40%
2,000,000 Commercial Mortgage
Asset Trust, Series
99-C1, Class A3 ............ 6.64 9/17/10 1,910,420
2,000,000 First USA Credit Card
Master Trust, Series
98-9, Class A .............. 5.28 9/18/06 1,903,540
1,937,469 Government National
Mortgage Association,
Series 99-19, Class A ...... 6.50 8/16/25 1,879,920
1,795,000 MBNA Master Credit
Card Trust, Series 99-J,
Class A .................... 7.00 2/15/12 1,803,414
788,580 Mortgage Capital
Funding, Inc., Series
98-MC1, Class A1 ........... 6.42 6/18/07 774,858
</TABLE>
2
<PAGE>
<TABLE>
<CAPTION>
Principal Coupon Maturity
Amount Rate Date Value
- ------------------ -------------- ---------------- ---------------
<S> <C> <C> <C> <C>
ASSET BACKED SECURITIES -- (continued)
$1,251,466 Nomura Asset
Securities Corp., Series
98-D6, Class A1A ........... 6.28% 3/17/28 $1,227,375
1,365,000 PP&L Transition Bond
Co. LLC, Series 99-1,
Class A6 ................... 6.96 12/26/07 1,371,252
----------
TOTAL ASSET BACKED SECURITIES
(Cost $11,161,291)........................................... 10,870,779
----------
CORPORATE BONDS -- 14.04%
2,260,000 Associates Corp. of
North America ............. 5.80 4/20/04 2,170,861
1,290,000 Bank One Corp. ............. 6.88 6/15/03 1,306,395
1,185,000 Countrywide Home
Loans, Inc. ............... 6.85 6/15/04 1,180,815
975,000 Ford Motor Credit
Co. ....................... 5.75 2/23/04 935,672
1,455,000 General Motors Corp......... 6.25 5/01/05 1,404,794
2,455,000 Morgan Stanley Dean
Witter & Co. .............. 5.63 1/20/04 2,342,784
1,290,000 Norwest Corp. .............. 6.50 6/01/05 1,258,071
----------
TOTAL CORPORATE BONDS
(Cost $10,889,364)........................................... 10,599,392
----------
CERTIFICATE OF DEPOSIT -- 1.28%
1,000,000 Mercantile Safe
Deposit & Trust
(Cost $1,000,000).......... 6.10 5/17/04 964,450
----------
SHORT-TERM INVESTMENTS -- 8.41%
2,000,000 Federal Home Loan
Bank Discount
Corp. ..................... 5.15+ 10/07/99 1,998,283
Shares
- ----------
2,177,895 Dreyfus Government Cash Management
Fund ........................................................ 2,177,895
2,177,837 Fidelity U.S. Treasury II Fund ............................... 2,177,837
----------
TOTAL SHORT-TERM INVESTMENTS
(Cost $6,354,015)............................................ 6,354,015
----------
TOTAL INVESTMENTS
(Cost $77,195,650)................................................ 99.52% $75,141,917
OTHER ASSETS AND
LIABILITIES (NET) ................................................ 0.48 363,127
------ -----------
NET ASSETS ......................................................... 100.00% $75,505,044
====== ===========
</TABLE>
- -------------------------
+ Discount Rate
See Notes to Financial Statements.
<PAGE>
Excelsior Institutional Trust
Schedule of Investments
September 30, 1999 (Unaudited)
Total Return Bond Fund
<TABLE>
<CAPTION>
Principal Coupon Maturity
Amount Rate Date Value
- -------------- ------------- ---------------- -----------------
<S> <C> <C> <C> <C>
U.S. GOVERNMENT & AGENCY
OBLIGATIONS -- 42.33%
Federal National
Mortgage Association
$13,325,000 Benchmark Notes........ 5.13% 2/13/04 $12,678,964
3,050,000 Benchmark Notes........ 5.25 1/15/09 2,748,367
2,025,278 Pool #489792 .......... 5.50 5/01/29 1,826,699
Government National
Mortgage Association
25,136 Pool #356873 .......... 6.50 5/15/23 24,034
3,685,515 Pool #80185 ........... 5.00 4/20/28 3,675,533
2,175,344 Pool #80205 ........... 5.00 6/20/28 2,169,453
4,934,553 Pool #2687 ............ 6.00 12/20/28 4,566,376
1,173,972 Pool #501312 .......... 7.00 2/15/29 1,152,719
2,763,500 Pool #503775 .......... 7.00 2/15/29 2,713,472
5,999,996 Pool #465218 .......... 7.00 3/15/29 5,891,378
5,999,995 Pool #506465 .......... 7.00 4/15/29 5,874,370
1,602,590 Pool #505668 .......... 7.00 5/15/29 1,573,578
1,919,385 Pool #505674 .......... 7.00 5/15/29 1,884,639
2,234,746 Pool #492572 .......... 7.00 8/15/29 2,194,291
2,847,510 Pool #504541 .......... 7.00 8/15/29 2,795,962
3,845,565 Pool #80311 ........... 5.50 8/20/29 3,796,791
52,914,000 U.S. Treasury
Bonds ............... 7.25 5/15/16 57,196,753
2,904,308 U.S. Treasury
Inflation Index
Bonds ............... 3.88 4/15/29 2,806,287
-----------
TOTAL U.S. GOVERNMENT &
AGENCY OBLIGATIONS
(Cost $119,837,580).................................. 115,569,666
-----------
CORPORATE BONDS -- 24.65%
3,295,000 Associates Corp. of
North America ........ 5.80 4/20/04 3,165,039
10,380,000 Bank of America
Corp. ................ 6.63 6/15/04 10,296,047
4,915,000 Emerson Electric ...... 5.85 3/15/09 4,573,830
9,000,000 Ford Motor Credit
Co. .................. 5.75 2/23/04 8,636,976
8,105,000 General Motors
Acceptance
Corp. ................ 6.85 6/17/04 8,101,799
4,060,000 Goldman Sachs
Group, Inc.,
Series B ............. 7.35 10/01/09 4,062,842
3,895,000 McDonald's Corp........ 5.90 5/11/01 3,879,104
3,950,000 Morgan Stanley
Dean Witter &
Co. .................. 6.38 8/01/02 3,917,286
3,895,000 New Jersey
Economic
Development
Authority,
Revenue Bonds,
Series A ............. 7.43 2/15/29 3,927,157
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
Principal Coupon Maturity
Amount Rate Date Value
- -------------- ------------- ---------------- -----------------
<S> <C> <C> <C> <C>
CORPORATE BONDS -- (continued)
$ 6,130,000 PPG Industries,
Inc. ................ 6.75% 8/15/04 $ 6,127,241
3,500,000 Procter & Gamble
Co. ................. 6.88 9/15/09 3,508,299
7,190,000 Star Bank N.A. ........ 6.38 3/01/04 7,107,473
-----------
TOTAL CORPORATE BONDS
(Cost $68,786,908).................................... 67,303,093
-----------
ASSET BACKED SECURITIES -- 19.03%
6,580,000 +AESOP Funding
II, Series 97-1,
Class A2 ............... 6.40 10/20/03 6,531,505
8,960,000 Capital Auto
Receivables Asset
Trust, Series 99-1,
Class A3 ............... 5.68 8/15/04 8,842,893
7,790,000 Commercial
Mortgage Asset
Trust, Series
99-C1, Class A3 ........ 6.64 9/17/10 7,441,086
3,665,000 Fannie Mae-Aces,
Series 97-M5,
Class C ................ 6.74 8/25/07 3,594,815
5,500,000 First USA Credit
Card Master Trust,
Series 98-9,
Class A ................ 5.28 9/18/06 5,234,735
5,000,000 MBNA Master
Credit Card Trust,
Series 99-J,
Class A ................ 7.00 2/15/12 5,023,438
4,116,112 Mortgage Capital
Funding, Inc.,
Series 98-MC1,
Class A1 ............... 6.42 6/18/07 4,044,491
4,201,350 Nomura Asset
Securities Corp.,
Series 98-D6,
Class A1A .............. 6.28 3/17/28 4,120,474
3,525,000 Peco Energy
Transition Trust,
Series 99-A,
Class A4 ............... 5.80 3/01/07 3,400,885
3,690,000 PP&L Transition
Bond Co. LLC.,
Series 99-1,
Class A6 ............... 6.96 12/26/07 3,706,900
-----------
TOTAL ASSET BACKED
SECURITIES
(Cost $53,091,342).................................... 51,941,222
-----------
CERTIFICATE OF DEPOSIT -- 2.49%
7,035,000 Mercantile Safe
Deposit & Trust
(Cost $7,035,000). 6.10 5/17/04 6,784,906
-----------
</TABLE>
See Notes to Financial Statements.
<PAGE>
Excelsior Institutional Trust
Schedule of Investments
September 30, 1999 (Unaudited)
Total Return Bond Fund -- (continued)
<TABLE>
<CAPTION>
Principal Coupon Maturity
Amount Rate Date Value
- -------------- ------------- ---------------- -----------------
<S> <C> <C> <C> <C>
SHORT-TERM INVESTMENTS -- 10.94%
$15,000,000 Federal Home Loan
Bank Discount
Corp. ................ 5.15%++ 10/07/99 $14,987,125
Shares
- ---------------------
<S> <C> <C> <C> <C>
7,432,271 Dreyfus Government Cash
Management Fund ................................ 7,432,271
7,433,702 Fidelity U.S. Treasury II
Fund ........................................... 7,433,702
---------
TOTAL SHORT-TERM
INVESTMENTS
(Cost $29,853,098).............................. 29,853,098
----------
TOTAL INVESTMENTS
(Cost $278,603,928).......................................... 99.44% $271,451,985
OTHER ASSETS AND
LIABILITIES (NET) ........................................... 0.56 1,541,975
------ ------------
NET ASSETS .................................................... 100.00% $272,993,960
====== ============
</TABLE>
- -------------------------
+ 144A Security -- certain conditions for public sale may exist.
++ Discount Rate
See Notes to Financial Statements.
<PAGE>
Excelsior Institutional Trust
Schedule of Investments
September 30, 1999 (Unaudited)
International Equity Fund
<TABLE>
<CAPTION>
Shares Value
- ------------- -------------
<S> <C> <C>
COMMON STOCKS -- 92.78%
JAPAN -- 19.75%
182 DDI Corp. .............................. $ 1,364,318
10,600 Don Quijote Co., Ltd. .................. 1,898,107
249,000 Furukawa Electric Co., Ltd. ............ 1,481,587
10,300 NIDEC Corp. ............................ 1,944,762
13,200 Nintendo Co., Ltd. ..................... 2,100,225
306 NTT Data Corp. ......................... 3,440,780
7,600 Rohm Co. ............................... 1,584,520
178,000 Sekisui Chemical Co., Ltd. ............. 1,002,418
19,000 Sony Corp. ............................. 2,832,552
24,600 TOKYO SEIMITSU CO., Ltd. ............... 2,786,863
-----------
20,436,132
-----------
UNITED KINGDOM -- 11.93%
228,900 Airtours plc ........................... 1,457,914
492,700 BTR Siebe plc .......................... 2,400,211
34,500 Glaxo Wellcome plc ..................... 899,393
10,000 Glaxo Wellcome plc ADR ................. 520,000
112,000 Granada Group plc ...................... 958,509
129,900 Kingfisher plc ......................... 1,391,763
30,000 Pearson plc ............................ 643,340
35,000 Railtrack Group plc .................... 736,163
77,200 Serco Group plc ........................ 1,727,950
14,500 Shell Transport & Trading Co.
ADR ................................... 659,750
126,400 Shell Transport & Trading Co. plc ...... 944,448
-----------
12,339,441
-----------
FRANCE -- 11.36%
23,840 Axa .................................... 3,013,740
12,210 Carrefour S.A. ......................... 1,952,800
27,750 Dassault Systemes S.A. ................. 1,092,566
13,500 Elf Aquitaine S.A. ..................... 2,457,915
790 L'OREAL ................................ 503,964
6,700 Total Fina S.A., Class B ............... 841,278
27,000 Vivendi ................................ 1,894,792
-----------
11,757,055
-----------
GERMANY -- 8.65%
20,770 Mannesmann AG .......................... 3,253,324
23,810 Metro AG ............................... 1,236,409
5,270 SAP AG ................................. 1,996,382
30,200 Siemens AG ............................. 2,458,394
-----------
8,944,509
-----------
NETHERLANDS -- 7.25%
21,800 +Equant N.V. ............................ 1,772,283
55,834 ING Groep N.V. ......................... 3,030,065
24,800 ST Microelectronics N.V. ............... 1,931,727
22,400 Wolters Kluwer N.V. .................... 767,515
-----------
7,501,590
-----------
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
Shares Value
- ----------- -----------
<S> <C> <C>
COMMON STOCKS -- (continued)
SINGAPORE -- 4.44%
866,000 Datacraft Asia, Ltd. ................... $ 3,810,400
211,000 Natsteel Electronics Ltd. .............. 788,379
-----------
4,598,779
-----------
CANADA -- 3.79%
54,800 Bombardier, Inc., Class B .............. 908,112
45,500 +CGI Group, Inc. ........................ 897,986
5,600 +JDS Uniphase Corp. ..................... 637,000
25,622 Nortel Networks Corp. .................. 1,307,779
16,050 +Sierra Wireless, Inc. .................. 174,765
-----------
3,925,642
-----------
SWITZERLAND -- 3.43%
29 Lindt & Spruengli AG ................... 751,455
242 Roche Holding AG ....................... 2,798,195
-----------
3,549,650
-----------
HONG KONG -- 3.16%
11,900 +China Telecom (Hong Kong) Ltd.
ADR ................................... 735,569
2,076,110 Hengan International Group Co.,
Ltd. .................................. 529,197
255,000 Johnson Electric Holdings Ltd. ......... 1,237,609
254,000 Li & Fung Ltd. ......................... 768,428
-----------
3,270,803
-----------
SWEDEN -- 2.75%
28,300 Celsius AB, Series B ................... 439,001
77,700 Telefonaktiebolaget LM Ericsson,
Class B ............................... 2,410,626
-----------
2,849,627
-----------
ITALY -- 2.52%
532,900 Unicredito Italiano S.p.A. ............. 2,602,804
-----------
THAILAND -- 2.37%
517,400 +Banpu Public Co., Ltd.
(Registered) .......................... 1,004,967
244,900 BEC World Public Co., Ltd.
(Foreign) ............................. 1,328,312
80,500 Dhipaya Insurance Public Co.,
Ltd. .................................. 119,973
-----------
2,453,252
-----------
AUSTRALIA -- 2.19%
65,900 Brambles Industries Ltd. ............... 1,907,895
28,900 Lend Lease Corp., Ltd. ................. 352,649
-----------
2,260,544
-----------
SPAIN -- 1.91%
149,880 Banco Bilbao Vizcaya S.A.
(Registered) .......................... 1,974,456
-----------
</TABLE>
See Notes to Financial Statements.
<PAGE>
Excelsior Institutional Trust
Schedule of Investments
September 30, 1999 (Unaudited)
International Equity Fund -- (continued)
<TABLE>
<CAPTION>
Shares Value
- ----------- -------------
<S> <C> <C>
COMMON STOCKS -- (continued)
IRELAND -- 1.33%
122,400 Irish Life & Permanent plc .......... $ 1,374,096
-----------
PORTUGAL -- 1.10%
42,130 Banco Comercial Portugues S.A. ...... 1,134,214
-----------
FINLAND -- 1.02%
11,800 Nokia Oyj ........................... 1,055,993
-----------
SOUTH KOREA -- 0.83%
10,000 +Korea Telecom Corp. ADR ............. 370,000
2,903 S1 Corp. ............................ 488,210
-----------
858,210
-----------
TAIWAN -- 0.70%
172,000 +Taiwan Semiconductor
Manufacturing Co. .................. 725,498
-----------
ISRAEL -- 0.66%
12,900 +Gilat Satellite Networks Ltd. ....... 686,925
-----------
NEW ZEALAND -- 0.62%
162,200 Telecom Corp. of New Zealand
Ltd. ............................... 639,708
-----------
CHILE -- 0.58%
16,000 Vina Concha Y Toro S.A. ADR ......... 604,000
-----------
EGYPT -- 0.44%
19,200 Egyptian Company for Mobile
Services (MobiNil) ................. 450,440
-----------
TOTAL COMMON STOCKS
(Cost $84,254,951) ................. 95,993,368
-----------
No. of
Warrants
- -------------
WARRANTS -- 0.60%
PHILIPPINES -- 0.55%
1,345,200 +QueenBee Restaurants-Jollibee
Foods Corp., expiring 03/24/03
at $19.25 ........................... 568,743
-------
JAPAN -- 0.05%
13,000 +Atlantis Japan Growth Fund Ltd.,
expiring 04/30/01 at $10.00 ......... 48,880
-------
TOTAL WARRANTS
(Cost $674,835) ..................... 617,623
-------
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
Principal
Amount Value
- ----------- -------
<S> <C> <C>
CONVERTIBLE BONDS -- 0.07%
PORTUGAL -- 0.07%
$ 700 Banco Comercial Portugues S.A.,
Series A (Preferred)
8.00%, 12/31/2049
(Cost $81,900) ...................... $ 70,000
---------
DEMAND NOTES -- 6.88%
3,600,000 Associates Corp. of North America
Master Notes ........................ 3,600,000
3,519,000 General Electric Co. Promissory
Notes ............................... 3,519,000
---------
TOTAL DEMAND NOTES
(Cost $7,119,000) ................... 7,119,000
---------
TOTAL INVESTMENTS
(Cost $92,130,686) .............. 100.33% $103,799,991
OTHER ASSETS AND
LIABILITIES (NET) ................ ( 0.33) (337,320)
------ ------------
NET ASSETS ......................... 100.00% $103,462,671
====== ============
</TABLE>
- -------------------------
+ Non-income producing security
ADR--American Depositary Receipt
At September 30, 1999, sector diversification of the Fund's investment
portfolio was as follows:
% of
Net Market
Sector Diversification Assets Value
- ------------------------------------ ----------- ----------------
Information Technology ............. 26.36% $ 27,272,951
Consumer Discretionary ............. 17.73 18,338,293
Industrials ........................ 13.32 13,785,133
Financials ......................... 13.26 13,720,876
Telecommunication Services ......... 8.30 8,585,641
Demand Notes ....................... 6.88 7,119,000
Energy ............................. 4.74 4,903,391
Health Care ........................ 4.08 4,217,588
Consumer Staples ................... 2.86 2,957,359
Utilities .......................... 1.83 1,894,792
Materials .......................... 0.97 1,004,967
------ ------------
Total Investments ................ 100.33% $103,799,991
Other Assets and Liabilities (Net) ( 0.33) (337,320)
------ ------------
Net Assets ....................... 100.00% $103,462,671
======= ============
See Notes to Financial Statements.
<PAGE>
Excelsior Institutional Trust
Schedule of Investments
September 30, 1999 (Unaudited)
Optimum Growth Fund
<TABLE>
<CAPTION>
Shares Value
- ------------ -------------
<S> <C> <C>
COMMON STOCKS -- 98.10%
TECHNOLOGY -- 37.37%
25,000 +BMC Software, Inc. ................. $1,787,500
82,000 +Cisco Systems, Inc. ................ 5,617,000
103,000 +Dell Computer Corp. ................ 4,306,688
85,000 +EMC Corp. .......................... 6,072,187
54,000 Intel Corp. ........................ 4,012,875
32,000 Lucent Technologies, Inc. .......... 2,076,000
52,000 +Microsoft Corp. .................... 4,709,250
22,000 Nokia Oyj, Class A, ADR ............ 1,975,875
14,500 +Solectron Corp. .................... 1,041,281
14,000 +Sun Microsystems, Inc. ............. 1,302,000
36,000 +Tellabs, Inc. ...................... 2,049,750
----------
34,950,406
----------
HEALTH CARE -- 13.93%
16,000 Abbott Laboratories ................ 588,000
13,300 American Home Products Corp. ....... 551,950
23,000 Bristol-Myers Squibb Co. ........... 1,552,500
12,000 Eli Lilly & Co. .................... 768,000
11,000 Johnson & Johnson .................. 1,010,625
83,710 Medtronic, Inc. .................... 2,971,705
31,000 Merck & Co., Inc. .................. 2,009,187
66,000 Pfizer, Inc. ....................... 2,371,875
20,000 Schering-Plough Corp. .............. 872,500
5,000 Warner Lambert Co. ................. 331,875
----------
13,028,217
----------
FINANCIAL -- 12.15%
25,000 American International
Group, Inc. ....................... 2,173,437
52,500 Citigroup, Inc. .................... 2,310,000
28,000 Fannie Mae ......................... 1,755,250
32,000 Merrill Lynch & Co., Inc. .......... 2,150,000
88,400 Schwab (Charles) Corp. ............. 2,977,975
----------
11,366,662
----------
CONSUMER STAPLES -- 10.15%
23,500 Bestfoods .......................... 1,139,750
19,000 Coca-Cola Co. ...................... 913,188
21,900 General Mills, Inc. ................ 1,776,637
11,500 H.J. Heinz Co. ..................... 494,500
16,500 PepsiCo, Inc. ...................... 499,125
12,600 Procter & Gamble Co. ............... 1,181,250
10,000 Quaker Oats Co. .................... 618,750
14,000 Sara Lee Corp. ..................... 328,125
11,800 Time Warner, Inc. .................. 716,850
12,000 Times Mirror Co., Class A .......... 789,750
8,487 Tootsie Roll Industries, Inc. ...... 279,010
11,000 Wrigley (WM.) Jr. Co. .............. 756,938
----------
9,493,873
----------
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
Shares Value
- ------------- -------------
<S> <C> <C>
COMMON STOCKS -- (continued)
CONSUMER CYCLICAL -- 9.86%
25,000 +Clear Channel
Communications, Inc. ................ $1,996,875
35,000 Harley-Davidson, Inc. ................ 1,752,188
48,000 Home Depot, Inc. ..................... 3,294,000
13,200 McDonald's Corp. ..................... 567,600
34,000 Wal-Mart Stores, Inc. ................ 1,617,125
----------
9,227,788
----------
COMMUNICATION
SERVICES -- 9.15%
45,000 +America Online, Inc. ................. 4,680,000
8,000 Ameritech Corp. ...................... 537,500
14,000 GTE Corp. ............................ 1,076,250
31,500 +MCI WorldCom, Inc. ................... 2,262,094
----------
8,555,844
----------
CAPITAL GOODS -- 5.49%
37,000 General Electric Co. ................. 4,386,813
12,000 Vastar Resources, Inc. ............... 750,750
----------
5,137,563
----------
TOTAL COMMON STOCKS
(Cost $48,183,546) ................... 91,760,353
----------
Principal
Amount
- ----------
DEMAND NOTES -- 1.97%
$1,845,000 Associates Corp. of North America
Master Notes (Cost $1,845,000) ...... 1,845,000
----------
TOTAL INVESTMENTS
(Cost $50,028,546) ................. 100.07% $93,605,353
OTHER ASSETS AND
LIABILITIES (NET) .................. ( 0.07) (69,021)
------ -----------
NET ASSETS ........................... 100.00% $93,536,332
====== ===========
</TABLE>
- -------------------------
+ Non-income producing security
ADR--American Depositary Receipt
See Notes to Financial Statements.
<PAGE>
Excelsior Institutional Trust
Schedule of Investments
September 30, 1999 (Unaudited)
Value Equity Fund
<TABLE>
<CAPTION>
Shares Value
- ------------- -----------------
<S> <C> <C>
COMMON STOCKS -- 96.58%
TECHNOLOGY -- 28.43%
10,000 BCE, Inc. ............................ $ 496,802
30,000 +Bell & Howell Co. .................... 1,100,625
5,000 +Broadbase Software, Inc. ............. 79,375
22,000 Cordant Technologies, Inc. ........... 669,625
86,100 +Global Crossing Ltd. ................. 2,278,959
25,000 Harris Corp. ......................... 690,625
1,651 Intermedia Communications, Inc. ...... 35,806
1,000 +Internap Network Services Corp. ...... 44,625
18,000 International Business Machines
Corp. ............................... 2,184,750
32,000 Nokia Oyj, Class A, ADR .............. 2,874,000
3,500 +Plantronics, Inc. .................... 174,125
30,000 +Snyder Communications, Inc. .......... 455,625
32,000 Xerox Corp. .......................... 1,342,000
----------
12,426,942
----------
CONSUMER CYCLICAL -- 20.70%
11,000 AT&T Corp. ........................... 478,500
45,760 +AT&T Corp. -- Liberty Media
Group, Class A ...................... 1,698,840
7,000 +Bluestone Software, Inc. ............. 161,875
25,000 +CBS Corp. ............................ 1,156,250
25,000 Ford Motor Co. ....................... 1,254,687
8,000 +Luminant Worldwide Corp. ............. 246,000
27,000 News Corp. Ltd. ADR .................. 767,812
22,000 +Unisys Corp. ......................... 992,750
75,000 +Varian, Inc. ......................... 1,326,562
10,000 +Ventiv Health, Inc. .................. 98,750
19,700 Young & Rubicam, Inc. ................ 866,800
----------
9,048,826
----------
CONSUMER STAPLES -- 17.25%
25,000 Avon Products, Inc. .................. 620,313
26,000 Bristol-Myers Squibb Co. ............. 1,755,000
22,000 Deluxe Corp. ......................... 748,000
20,000 Eastman Kodak Co. .................... 1,508,750
36,000 Philip Morris Companies, Inc. ........ 1,230,750
40,000 Rite Aid Corp. ....................... 552,500
30,000 +Suiza Foods Corp. .................... 1,125,000
----------
7,540,313
----------
FINANCIAL -- 12.91%
17,000 Bear Stearns Companies, Inc. ......... 653,437
20,000 Chase Manhattan Corp. ................ 1,507,500
8,000 Citigroup, Inc. ...................... 352,000
16,000 Donaldson, Lufkin & Jenrette, Inc.
- DLJ ............................... 633,000
13,000 Fannie Mae ........................... 814,938
22,000 SLM Holding Corp. .................... 946,000
16,344 XL Capital Ltd., Class A ............. 735,480
----------
5,642,355
----------
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
Shares Value
- ---------- ---------
<S> <C> <C>
COMMON STOCKS -- (continued)
TRANSPORTATION -- 7.38%
13,000 +AMR Corp. ............................ $ 708,500
18,000 CNF Transportation, Inc. ............. 670,500
18,000 +General Motors Corp., Class H ........ 1,030,500
17,000 Union Pacific Corp. .................. 817,063
----------
3,226,563
----------
CAPITAL GOODS -- 7.37%
20,000 Kansas City Southern Industries,
Inc. ................................ 928,750
20,000 Texas Instruments, Inc. .............. 1,645,000
40,000 Timken Co. ........................... 645,000
----------
3,218,750
----------
RAW/INTERMEDIATE
MATERIALS -- 1.81%
13,000 E.I. du Pont de Nemours and Co. ...... 791,375
----------
UTILITY -- 0.73%
12,500 +Salem Communications Corp.,
Class A ............................. 318,750
----------
TOTAL COMMON STOCKS
(Cost $30,114,121)................... 42,213,874
----------
Principal
Amount
- ----------
CONVERTIBLE BONDS -- 1.76%
TECHNOLOGY -- 1.76%
$ 25,000 Intermedia Communications, Inc.,
Series D (Preferred) 7.00%,
12/31/2049 (Cost $657,010)........... 768,750
----------
DEMAND NOTES -- 2.20%
400,000 Associates Corp. of North America
Master Notes ........................ 400,000
563,000 General Electric Co.
Promissory Notes .................... 563,000
----------
TOTAL DEMAND NOTES
(Cost $963,000)...................... 963,000
----------
TOTAL INVESTMENTS
(Cost $31,734,131) ................. 100.54% $43,945,624
OTHER ASSETS AND
LIABILITIES (NET) .................. ( 0.54) (237,088)
------ -----------
NET ASSETS ........................... 100.00% $43,708,536
====== ===========
</TABLE>
- -------------------------
+ Non-income producing security
ADR--American Depositary Receipt
See Notes to Financial Statements.
<PAGE>
Excelsior Institutional Trust
Statements of Assets and Liabilities
September 30, 1999 (Unaudited)
<TABLE>
<CAPTION>
Total Return
Equity Income Bond
Fund Fund Fund
------------------ --------------- ----------------
<S> <C> <C> <C>
Assets:
Investments, at cost -- see accompanying
Schedule of Investments ........................................... $ 123,603,179 $ 77,195,650 $ 278,603,928
============== ============ =============
Investments in securities, at value (Note 1a) ...................... $ 181,328,264 $ 75,141,917 $ 271,451,985
Cash ............................................................... 86,714 25,423 78,980
Dividends receivable ............................................... 147,626 -- --
Interest receivable ................................................ 10,567 771,591 2,964,606
Receivable for investment securities sold .......................... 387,393 25 --
Other assets ....................................................... 546 282 897
-------------- ------------ -------------
Total assets ...................................................... 181,961,110 75,939,238 274,496,468
Liabilities:
Payable for investments purchased .................................. 280,950 -- --
Dividends payable .................................................. -- 373,149 1,283,395
Investment advisory fees payable (Note 2a) ......................... 141,197 36,220 118,866
Administration fees payable (Note 2b) .............................. 29,901 12,802 45,354
Trustees' fees and expenses payable (Note 2f) ...................... 3,181 1,277 4,299
Accrued expenses and other liabilities ............................. 29,458 10,746 50,594
-------------- ------------ -------------
Total liabilities ................................................. 484,687 434,194 1,502,508
-------------- ------------ -------------
Net Assets .......................................................... $ 181,476,423 $ 75,505,044 $ 272,993,960
============== ============ =============
Net Assets Consist of:
Par value .......................................................... $ 122 $ 112 $ 388
Paid-in capital in excess of par value ............................. 107,286,007 78,786,424 284,744,578
Undistributed (distributions in excess of) net investment income . 57,470 (24,304) 16,857
Accumulated net realized gain (loss) on investments ................ 16,407,739 (1,203,455) (4,615,920)
Unrealized appreciation (depreciation) of investments .............. 57,725,085 (2,053,733) (7,151,943)
-------------- ------------ -------------
Net Assets .......................................................... $ 181,476,423 $ 75,505,044 $ 272,993,960
============== ============ =============
Institutional Shares outstanding (Unlimited number of $0.00001 par
value shares authorized for each Fund) ............................. 12,237,843 11,204,426 38,763,464
Net Asset Value Per Share (net assets / shares outstanding) ......... $ 14.83 $ 6.74 $ 7.04
============== ============ =============
</TABLE>
See Notes to Financial Statements.
<PAGE>
Excelsior Institutional Trust
Statements of Assets and Liabilities -- (continued)
September 30, 1999 (Unaudited)
<TABLE>
<CAPTION>
International Optimum Value
Equity Growth Equity
Fund Fund Fund
----------------- ---------------- ---------------
<S> <C> <C> <C>
Assets:
Investments, at cost -- see accompanying
Schedule of Investments ............................................ $ 92,130,686 $ 50,028,546 $ 31,734,131
============= ============ ============
Investments in securities, at value (Note 1a) ....................... $ 103,799,991 $ 93,605,353 $ 43,945,624
Cash ................................................................ 154,518 52,849 --
Foreign currency at value (Cost $14,454) ............................ 14,522 -- --
Dividends receivable ................................................ 143,285 58,557 55,117
Interest receivable ................................................. 33,142 4,723 774
Receivable for investment securities sold ........................... 1,048,964 -- 249,431
Foreign withholding tax receivable .................................. 36,309 -- --
Deferred organization expenses (Note 1f) ............................ -- 402 402
Other assets ........................................................ 70,551 11 142
------------- ------------ ------------
Total assets ....................................................... 105,301,282 93,721,895 44,251,490
Liabilities:
Payable for investments purchased ................................... 1,667,273 -- 437,216
Investment advisory fees payable (Note 2a) .......................... 109,765 85,322 37,642
Administration fees payable (Note 2b) ............................... 23,980 14,746 7,156
Trustees' fees and expenses payable (Note 2f) ....................... 1,400 1,309 370
Administrative servicing fees payable (Note 2d) ..................... -- 2,761 --
Due to custodian bank ............................................... -- -- 47,009
Accrued expenses and other liabilities .............................. 36,193 81,425 13,561
------------- ------------ ------------
Total liabilities .................................................. 1,838,611 185,563 542,954
------------- ------------ ------------
Net Assets ........................................................... $ 103,462,671 $ 93,536,332 $ 43,708,536
============= ============ ============
Net Assets Consist of:
Par value ........................................................... $ 108 $ 35 $ 27
Paid-in capital in excess of par value .............................. 90,905,537 36,608,595 30,421,392
Undistributed (distributions in excess of) net investment income..... 1,341,858 (93,238) (64)
Accumulated net realized gain (loss) on investments ................. (454,319) 13,444,133 1,075,844
Unrealized appreciation of investments and foreign currency
translations. ...................................................... 11,669,487 43,576,807 12,211,337
------------- ------------ ------------
Net Assets ........................................................... $ 103,462,671 $ 93,536,332 $ 43,708,536
============= ============ ============
Net Assets:
Institutional Shares ................................................ $ 103,462,671 $ 76,758,205 $ 43,645,476
Shares .............................................................. -- 16,778,127 63,060
Shares outstanding (Unlimited number of $0.00001 par value shares
authorized for each Fund):
Institutional Shares ................................................ 10,759,863 2,895,384 2,738,558
Shares .............................................................. -- 636,924 3,951
Net Asset Value Per Share (net assets / shares outstanding):
Institutional Shares ................................................ $ 9.62 $ 26.51 $ 15.94
============= ============ ============
Shares .............................................................. -- $ 26.34 $ 15.96
============= ============ ============
</TABLE>
See Notes to Financial Statements.
<PAGE>
Excelsior Institutional Trust
Statements of Operations
For the Six Months Ended September 30, 1999 (Unaudited)
<TABLE>
<CAPTION>
Equity Income
Fund Fund
--------------- ---------------
<S> <C> <C>
Investment Income
Dividend income ...................... $ 831,724 $ --
Interest income ...................... 45,598 2,320,604
Less: Foreign taxes withheld ......... -- --
------------ ------------
Total Income ........................ 877,322 2,320,604
Expenses (Note 1g):
Investment advisory fees
(Note 2a) ........................... 605,840 240,152
Administration fees (Note 2b) ........ 141,992 56,350
Administrative servicing fees
(Note 2d) ........................... -- --
Custodian fees ....................... 31,573 9,721
Legal and audit fees ................. 18,310 7,240
Registration and filing fees ......... 11,515 9,951
Prospectus and shareholder
reports ............................. 5,878 2,346
Trustees' fees and expenses
(Note 2f) ........................... 5,240 1,985
Shareholder servicing agent fees ..... 2,533 3,231
Insurance expense .................... 1,195 556
Amortization of organization
expenses (Note 1f) .................. 619 --
Distribution fees -- Shares
(Note 2e) ........................... -- --
Miscellaneous ........................ 3,578 1,529
------------ ------------
Total Expenses ...................... 828,273 333,061
Less: Waiver of fees (Note 2c) ...... (175,857) (148,667)
------------ ------------
Net Expenses ........................ 652,416 184,394
------------ ------------
Net Investment Income (Loss) .......... 224,906 2,136,210
------------ ------------
Realized and Unrealized Gain (Loss)
(Note 1):
Net realized gain (loss) on
investments ......................... 7,773,337 (1,311,515)
Net realized loss on foreign
currency transactions ............... -- --
Change in unrealized
appreciation/depreciation of
investments and foreign
currency translations during
the period .......................... (9,199,690) (1,543,900)
------------ ------------
Net Realized and Unrealized Gain
(Loss) ............................... (1,426,353) (2,855,415)
------------ ------------
Net Increase (Decrease) in Net
Assets Resulting from Operations...... $ (1,201,447) $ (719,205)
============ ============
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
Total Return International Optimum Value
Bond Equity Growth Equity
Fund Fund Fund Fund
----------------- --------------- ---------------- ---------------
<S> <C> <C> <C> <C>
Investment Income
Dividend income ...................... $ -- $ 1,896,972 $ 285,935 $ 274,054
Interest income ...................... 7,778,482 111,189 23,817 6,597
Less: Foreign taxes withheld ......... -- (81,784) -- (347)
------------- ------------ ------------- -----------
Total Income ........................ 7,778,482 1,926,377 309,752 280,304
Expenses (Note 1g):
Investment advisory fees
(Note 2a) ........................... 830,226 454,817 314,669 143,617
Administration fees (Note 2b) ........ 195,001 90,963 73,858 33,667
Administrative servicing fees
(Note 2d) ........................... -- -- 12,760 --
Custodian fees ....................... 33,798 68,433 12,989 6,831
Legal and audit fees ................. 22,513 9,990 10,186 4,049
Registration and filing fees ......... 21,279 20,812 12,045 12,931
Prospectus and shareholder
reports ............................. 6,858 2,676 2,075 1,312
Trustees' fees and expenses
(Note 2f) ........................... 7,351 2,517 2,628 956
Shareholder servicing agent fees ..... 3,279 3,659 3,970 3,846
Insurance expense .................... 1,695 388 468 307
Amortization of organization
expenses (Note 1f) .................. 725 604 123 123
Distribution fees -- Shares
(Note 2e) ........................... -- -- 19,400 124
Miscellaneous ........................ 5,189 1,223 1,475 1,682
------------- ------------ ------------- -----------
Total Expenses ...................... 1,127,914 656,082 466,646 209,445
Less: Waiver of fees (Note 2c) ...... (488,767) (246,783) (63,656) (33,686)
------------- ------------ ------------- -----------
Net Expenses ........................ 639,147 409,299 402,990 175,759
------------- ------------ ------------- -----------
Net Investment Income (Loss) .......... 7,139,335 1,517,078 (93,238) 104,545
------------- ------------ ------------- -----------
Realized and Unrealized Gain (Loss)
(Note 1):
Net realized gain (loss) on
investments ......................... (4,092,054) 213,852 10,829,425 639,448
Net realized loss on foreign
currency transactions ............... -- (48,652) -- (2,628)
Change in unrealized
appreciation/depreciation of
investments and foreign
currency translations during
the period .......................... (5,623,734) 10,052,718 (14,771,322) 942,641
------------- ------------ ------------- -----------
Net Realized and Unrealized Gain
(Loss) ............................... (9,715,788) 10,217,918 (3,941,897) 1,579,461
------------- ------------ ------------- -----------
Net Increase (Decrease) in Net
Assets Resulting from Operations...... $ (2,576,453) $ 11,734,996 $ (4,035,135) $ 1,684,006
============= ============ ============= ===========
</TABLE>
See Notes to Financial Statements.
<PAGE>
Excelsior Institutional Trust
Statements of Changes in Net Assets
<TABLE>
<CAPTION>
Equity Fund Income Fund
---------------------------------- ---------------------------------
Six Months Six Months
Ended Ended
September 30, Year Ended September 30, Year Ended
1999 March 31, 1999 March 31,
(Unaudited) 1999 (Unaudited) 1999
---------------- ---------------- --------------- ----------------
<S> <C> <C> <C> <C>
Operations:
Net investment income ............... $ 224,906 $ 431,024 $ 2,136,210 $ 3,543,754
Net realized gain (loss) on
investments. ....................... 7,773,337 11,056,827 (1,311,515) 1,294,824
Change in unrealized
appreciation/depreciation of
investments during the period....... (9,199,690) 18,360,482 (1,543,900) (1,175,763)
------------- ------------- ------------ ------------
Net increase (decrease) in
net assets resulting from
operations ....................... (1,201,447) 29,848,333 (719,205) 3,662,815
Distributions to Shareholders:
From net investment income. ......... (277,991) (435,000) (2,136,197) (3,538,256)
In excess of net investment
income ............................. -- -- -- (24,317)
From net realized gains ............. -- (2,446,333) -- (2,171,930)
In excess of net realized gains ..... -- -- -- --
------------- ------------- ------------ ------------
Total distributions to
shareholders ..................... (277,991) (2,881,333) (2,136,197) (5,734,503)
------------- ------------- ------------ ------------
Transactions in Shares of Beneficial
Interest:
Net proceeds from shares sold ....... 15,147,266 47,139,416 15,105,531 8,666,814
Contribution in-kind. ............... -- -- -- --
Reinvestment of dividends ........... -- 7,322 -- --
Cost of shares redeemed ............. (12,301,023) (32,332,217) (3,984,788) (729,572)
------------- ------------- ------------ ------------
Net increase in net assets
from beneficial interest
transactions ..................... 2,846,243 14,814,521 11,120,743 7,937,242
------------- ------------- ------------ ------------
Total Increase in Net
Assets .......................... 1,366,805 41,781,521 8,265,341 5,865,554
Net Assets:
Beginning of Period ................. 180,109,618 138,328,097 67,239,703 61,374,149
------------- ------------- ------------ ------------
End of Period (a) ................... $ 181,476,423 $ 180,109,618 $ 75,505,044 $ 67,239,703
============= ============= ============ ============
Capital Share Transactions:
Institutional Shares sold ........... 1,005,604 3,624,176 2,187,351 1,221,301
Contribution in-kind ................ -- -- -- --
Institutional Shares issued for
dividend reinvestment .............. -- 580 -- --
Institutional Shares redeemed ....... (810,682) (2,478,541) (595,339) (100,468)
------------- ------------- ------------ ------------
Net Increase in Shares
Outstanding ......................... 194,922 1,146,215 1,592,012 1,120,833
============= ============= ============ ============
------------
(a) Including undistributed (distri-
butions in excess of) net invest-
ment income ........................ $ 57,470 $ 110,555 $ (24,304) $ (24,317)
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
Total Return Bond Fund
------------------------------------
Six Months
Ended
September 30, Year Ended
1999 March 31,
(Unaudited) 1999
----------------- -----------------
<S> <C> <C>
Operations:
Net investment income ............... $ 7,139,335 $ 11,156,699
Net realized gain (loss) on
investments. ....................... (4,092,054) 3,877,687
Change in unrealized
appreciation/depreciation of
investments during the period....... (5,623,734) (4,548,009)
------------- -------------
Net increase (decrease) in
net assets resulting from
operations ....................... (2,576,453) 10,486,377
Distributions to Shareholders:
From net investment income. ......... (7,139,335) (11,156,710)
In excess of net investment
income ............................. -- --
From net realized gains ............. -- (5,489,069)
In excess of net realized gains ..... -- (523,866)
------------- -------------
Total distributions to
shareholders ..................... (7,139,335) (17,169,645)
------------- -------------
Transactions in Shares of Beneficial
Interest:
Net proceeds from shares sold ....... 53,754,391 119,082,504
Contribution in-kind. ............... -- 12,430,061
Reinvestment of dividends ........... 138,942 358,289
Cost of shares redeemed ............. (22,797,472) (41,284,954)
------------- -------------
Net increase in net assets
from beneficial interest
transactions ..................... 31,095,861 90,585,900
------------- -------------
Total Increase in Net
Assets .......................... 21,380,073 83,902,632
Net Assets:
Beginning of Period ................. 251,613,887 167,711,255
------------- -------------
End of Period (a) ................... $ 272,993,960 $ 251,613,887
============= =============
Capital Share Transactions:
Institutional Shares sold ........... 7,578,211 15,800,759
Contribution in-kind ................ -- 1,646,253
Institutional Shares issued for
dividend reinvestment .............. 19,542 47,445
Institutional Shares redeemed ....... (3,216,152) (5,458,140)
------------- -------------
Net Increase in Shares
Outstanding ......................... 4,381,601 12,036,317
============= =============
------------
(a) Including undistributed (distri-
butions in excess of) net invest-
ment income ........................ $ 16,857 $ 16,857
</TABLE>
See Notes to Financial Statements.
<PAGE>
Excelsior Institutional Trust
Statements of Changes in Net Assets -- (continued)
<TABLE>
<CAPTION>
International Equity Fund
----------------------------------
Six Months
Ended
September 30, Year Ended
1999 March 31,
(Unaudited) 1999
---------------- ----------------
<S> <C> <C>
Operations:
Net investment income (loss) ............... $ 1,517,078 $ 493,722
Net realized gain on investments ........... 213,852 1,597,388
Net realized loss on foreign currency
transactions .............................. (48,652) (44,361)
Change in unrealized
appreciation/depreciation of
investments and foreign currency
translations during the period ............ 10,052,718 (4,178,241)
------------- --------------
Net increase (decrease) in net assets
resulting from operations .............. 11,734,996 (2,131,492)
Distributions to Shareholders: ..............
From net investment income
Institutional Shares ...................... (203,655) (646,625)
Shares .................................... -- --
From net realized gains
Institutional Shares ...................... (110,686) (1,213,291)
Shares .................................... -- --
In excess of net realized gains
Institutional Shares ...................... -- (508,833)
------------- --------------
Total distributions to shareholders ...... (314,341) (2,368,749)
------------- --------------
Transactions in Shares of Beneficial
Interest:
Net proceeds from shares sold
Institutional Shares ...................... 31,942,265 66,156,100
Shares .................................... -- --
Reinvestment of dividends
Institutional Shares ...................... -- --
Shares .................................... -- --
Cost of shares redeemed
Institutional Shares ...................... (18,702,148) (23,290,314)
Shares .................................... -- --
------------- --------------
Net increase (decrease) in net assets
from beneficial interest
transactions ........................... 13,240,117 42,865,786
------------- --------------
Total Increase (Decrease) in Net
Assets ................................ 24,660,772 38,365,545
Net Assets:
Beginning of Period ........................ 78,801,899 40,436,354
------------- --------------
End of Period (a) .......................... $ 103,462,671 $ 78,801,899
============= ==============
Capital Share Transactions:
Shares Sold:
Institutional Shares ...................... 3,484,962 7,789,693
Shares .................................... -- --
Shares issued for dividend reinvestment:
Institutional Shares ...................... -- --
Shares .................................... -- --
Shares redeemed:
Institutional Shares ...................... (2,054,079) (2,642,321)
Shares .................................... -- --
------------- --------------
Net Increase (Decrease) in Shares
Outstanding ................................ 1,430,883 5,147,372
============= ==============
------------
(a) Including undistributed
(distributions in excess of) net
investment income ......................... $ 1,341,858 $ 28,435
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
Optimum Growth Fund Value Equity Fund
----------------------------------- ---------------------------------
Six Months Six Months
Ended Ended
September 30, Year Ended September 30, Year Ended
1999 March 31, 1999 March 31,
(Unaudited) 1999 (Unaudited) 1999
---------------- ----------------- ---------------- ---------------
<S> <C> <C> <C> <C>
Operations:
Net investment income (loss) ............... $ (93,238) $ (27,456) $ 104,545 $ 301,463
Net realized gain on investments ........... 10,829,425 4,906,503 639,448 2,731,686
Net realized loss on foreign currency
transactions .............................. -- -- (2,628) (1,063)
Change in unrealized
appreciation/depreciation of
investments and foreign currency
translations during the period ............ (14,771,322) 35,505,018 942,641 (1,255,930)
------------- ------------- ------------ ------------
Net increase (decrease) in net assets
resulting from operations .............. (4,035,135) 40,384,065 1,684,006 1,776,156
Distributions to Shareholders: ..............
From net investment income
Institutional Shares ...................... -- (10,785) (191,977) (276,362)
Shares .................................... -- -- (328) (217)
From net realized gains
Institutional Shares ...................... -- -- -- (3,002,331)
Shares .................................... -- -- -- (6,437)
In excess of net realized gains
Institutional Shares ...................... -- -- -- --
------------- ------------- ------------ ------------
Total distributions to shareholders ...... -- (10,785) (192,305) (3,285,347)
------------- ------------- ------------ ------------
Transactions in Shares of Beneficial
Interest:
Net proceeds from shares sold
Institutional Shares ...................... 6,419,705 16,636,464 3,961,153 6,929,195
Shares .................................... 6,428,385 2,171,420 29,703 46,060
Reinvestment of dividends
Institutional Shares ...................... -- 569 19 --
Shares .................................... -- -- 56 2,707
Cost of shares redeemed
Institutional Shares ...................... (14,429,366) (15,767,433) (1,109,974) (880,640)
Shares .................................... (1,306,111) (997,974) (95,266) (461)
------------- ------------- ------------ ------------
Net increase (decrease) in net assets
from beneficial interest
transactions ........................... (2,887,387) 2,043,046 2,785,691 6,096,861
------------- ------------- ------------ ------------
Total Increase (Decrease) in Net
Assets ................................ (6,922,522) 42,416,326 4,277,392 4,587,670
Net Assets:
Beginning of Period ........................ 100,458,854 58,042,528 39,431,144 34,843,474
------------- ------------- ------------ ------------
End of Period (a) .......................... $ 93,536,332 $ 100,458,854 $ 43,708,536 $ 39,431,144
============= ============= ============ ============
Capital Share Transactions:
Shares Sold:
Institutional Shares ...................... 237,730 812,340 242,347 466,461
Shares .................................... 232,970 105,092 1,778 3,120
Shares issued for dividend reinvestment:
Institutional Shares ...................... -- 35 -- --
Shares .................................... -- -- 4 190
Shares redeemed:
Institutional Shares ...................... (538,318) (766,399) (67,314) (59,957)
Shares .................................... (49,049) (56,822) (5,946) (31)
------------- ------------- ------------ ------------
Net Increase (Decrease) in Shares
Outstanding ................................ (116,667) 94,246 170,869 409,783
============= ============= ============ ============
------------
(a) Including undistributed
(distributions in excess of) net
investment income ......................... $ (93,237) $ -- $ (64) $ 87,696
</TABLE>
See Notes to Financial Statements.
<PAGE>
Excelsior Institutional Trust
Financial Highlights
<TABLE>
<CAPTION>
Selected data for a share outstanding throughout each period are as follows:
Equity Fund
----------------------------------------------
Six Months
Ended
September 30, Year Ended Year Ended
1999 March 31, March 31,
(Unaudited) 1999 1998
------------------ ------------ ------------
<S> <C> <C> <C>
Net Asset Value, Beginning of Period..... $ 14.96 $ 12.69 $ 9.65
---------- -------- -------
Investment Operations:
Net investment income .................. 0.02 0.04 0.05
Net realized and unrealized gain
(loss) on investments ................. ( 0.13) 2.47 4.67
---------- ------- -------
Total From Investment
Operations ........................... ( 0.11) 2.51 4.72
---------- ------- -------
Distributions:
From net investment income ............. ( 0.02) ( 0.04) ( 0.06)
In excess of net investment income...... -- -- --
From net realized gains ................ -- ( 0.20) ( 1.62)
---------- -------- --------
Total Distributions ................... ( 0.02) ( 0.24) ( 1.68)
---------- -------- --------
Net Asset Value, End of Period .......... $ 14.83 $ 14.96 $ 12.69
========== ======== ========
Total Return ............................ ( 0.72)%(c) 20.13% 51.58%
========== ======== ========
Ratios and Supplemental Data:
Ratios to Average Net Assets
Net Expenses ........................... 0.70%(e) 0.70% 0.70%
Gross Expenses (d) ..................... 0.89%(e) 0.90% 0.90%
Net Investment Income .................. 0.24%(e) 0.28% 0.46%
Portfolio Turnover ...................... 23%(e) 37% 26%
Net Assets at end of Period
(000's omitted) ........................ $ 181,476 $180,110 $138,328
----------
(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.
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
Equity Fund Income Fund
------------------------------------------------ ------------------------------
Six Months
Ten Months January 16, Ended
Ended Year Ended 1995(b) to September 30, Year Ended
March 31, May 31, May 31, 1999 March 31,
1997 (a) 1996 1995 (Unaudited) 1999
---------------- ------------ ---------------- ------------------ ------------
<S> <C> <C> <C> <C> <C>
Net Asset Value, Beginning of Period..... $ 8.93 $ 7.73 $ 7.00 $ 7.00 $ 7.23
--------- ------- --------- ---------- -------
Investment Operations:
Net investment income .................. 0.05 0.11 0.05 0.20 0.40
Net realized and unrealized gain
(loss) on investments ................ 0.86 1.20 0.70 (0.26) 0.03
--------- ------- --------- ---------- -------
Total From Investment
Operations ........................... 0.91 1.31 0.75 (0.06) 0.43
--------- ------- --------- ---------- -------
Distributions:
From net investment income ............. (0.07) (0.11) (0.02) (0.20) (0.41)
In excess of net investment income...... -- -- -- -- --(f)
From net realized gains ................ (0.12) -- -- -- (0.25)
--------- ------- --------- ---------- -------
Total Distributions ................... (0.19) (0.11) (0.02) (0.20) (0.66)
--------- ------- --------- ---------- -------
Net Asset Value, End of Period .......... $ 9.65 $ 8.93 $ 7.73 $ 6.74 $ 7.00
========= ======= ========= ========== =======
Total Return ............................ 10.22%(c) 17.04% 10.80%(c) (1.78)%(e) 5.94%
========= ======= ========= ========== =======
Ratios and Supplemental Data:
Ratios to Average Net Assets
Net Expenses ........................... 0.70%(e) 0.36% 0.12%(e) 0.50%(e) 0.50%
Gross Expenses (d) ..................... 0.92%(e) 1.49% 2.67%(e) 0.90%(e) 0.91%
Net Investment Income .................. 0.70%(e) 1.32% 2.44%(e) 5.78%(e) 5.57%
Portfolio Turnover ...................... 32%(e) 113% 34%(e) 172%(e) 196%
Net Assets at end of Period
(000's omitted) ........................ $ 118,562 $23,495 $ 15,409 $ 75,505 $67,240
----------
(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.
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
Income Fund
----------------------------------------------------------------
Ten Months January 16,
Year Ended Ended Year Ended 1995(b) to
March 31, March 31, May 31, May 31,
1998 1997 (a) 1996 1995
------------ ---------------- ------------ ------------------
<S> <C> <C> <C> <C>
Net Asset Value, Beginning of Period..... $ 6.90 $ 6.99 $ 7.33 $ 7.00
------ --------- ------- ----------
Investment Operations:
Net investment income .................. 0.44 0.38 0.51 0.19
Net realized and unrealized gain
(loss) on investments ................. 0.35 (0.01) (0.27) 0.33
------ --------- ------- ----------
Total From Investment
Operations ........................... 0.79 0.37 0.24 0.52
------ --------- ------- ----------
Distributions:
From net investment income ............. (0.44) (0.38) (0.51) (0.19)
In excess of net investment income...... -- -- -- --
From net realized gains ................ (0.02) (0.08) (0.07) --
------- --------- ------- ----------
Total Distributions ................... (0.46) (0.46) (0.58) (0.19)
------- --------- ------- ----------
Net Asset Value, End of Period .......... $ 7.23 $ 6.90 $ 6.99 $ 7.33
======= ========= ======= ==========
Total Return ............................ 11.78% 6.48%(e) 3.18% 21.63%(e)
======= ========= ======= ==========
Ratios and Supplemental Data:
Ratios to Average Net Assets
Net Expenses ........................... 0.50% 0.50%(e) 0.26% 0.12%(e)
Gross Expenses (d) ..................... 0.91% 0.96%(e) 1.35% 1.65%(e)
Net Investment Income .................. 6.14% 6.50%(e) 6.99% 7.17%(e)
Portfolio Turnover ...................... 190% 107%(e) 67% 34%(e)
Net Assets at end of Period
(000's omitted) ........................ $61,374 $ 51,082 $24,001 $ 33,230
----------
(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.
</TABLE>
See Notes to Financial Statements.
<PAGE>
Excelsior Institutional Trust
Financial Highlights -- (continued)
<TABLE>
<CAPTION>
Selected data for a share outstanding throughout each period are as follows:
Total Return Bond Fund
----------------------------------------------
Six Months
Ended
September 30, Year Ended Year Ended
1999 March 31, March 31,
(Unaudited) 1999 1998
------------------ ------------ ------------
<S> <C> <C> <C>
Net Asset Value, Beginning of Period ..... $ 7.32 $ 7.51 $ 7.16
---------- -------- -------
Investment Operations:
Net investment income ................... 0.20 0.42 0.44
Net realized and unrealized gain
(loss) on investments .................. (0.28) 0.03 0.41
---------- -------- -------
Total From Investment
Operations ............................ (0.08) 0.45 0.85
---------- -------- -------
Distributions:
From net investment income .............. (0.20) (0.42) (0.44)
In excess of net investment income....... -- -- --
From net realized gains ................. -- (0.20) (0.06)
In excess of net realized gains ......... -- (0.02) --
---------- -------- --------
Total Distributions .................... (0.20) (0.64) (0.50)
---------- -------- --------
Net Asset Value, End of Period ........... $ 7.04 $ 7.32 $ 7.51
========== ======== ========
Total Return ............................. (2.19)%(e) 6.07% 12.21%
========== ======== ========
Ratios and Supplemental Data:
Ratios to Average Net Assets
Net Expenses ............................ 0.50%(e) 0.50% 0.50%
Gross Expenses (d) ...................... 0.88%(e) 0.89% 0.90%
Net Investment Income ................... 5.59%(e) 5.53% 5.95%
Portfolio Turnover ....................... 119%(e) 234% 196%
Net Assets at end of Period
(000's omitted) ......................... $ 272,994 $251,614 $167,711
----------
(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
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
Total Return Bond Fund International Equity Fund
------------------------------------------------ ----------------------------
Six Months
Ten Months January 19, Ended
Ended Year Ended 1995(b) to September 30, Year Ended
March 31, May 31, May 31, 1999 March 31,
1997 (a) 1996 1995 (Unaudited) 1999
---------------- ------------ ---------------- --------------- ------------
<S> <C> <C> <C> <C> <C>
Net Asset Value, Beginning of Period ..... $ 7.18 $ 7.47 $ 7.00 $ 8.45 $ 9.67
--------- ------- --------- --------- -------
Investment Operations:
Net investment income ................... 0.37 0.48 0.18 0.14 0.16
Net realized and unrealized gain
(loss) on investments .................. 0.01 (0.17) 0.47 1.06 (0.79)
--------- ------- --------- --------- -------
Total From Investment
Operations ............................ 0.38 0.31 0.65 1.20 (0.63)
--------- ------- --------- --------- -------
Distributions:
From net investment income .............. (0.37) (0.48) (0.18) (0.02) (0.16)
In excess of net investment income....... -- -- -- -- --
From net realized gains ................. (0.03) (0.12) -- (0.01) (0.30)
In excess of net realized gains ......... -- -- -- -- (0.13)
--------- ------- --------- --------- -------
Total Distributions .................... (0.40) (0.60) (0.18) (0.03) (0.59)
--------- ------- --------- --------- -------
Net Asset Value, End of Period ........... $ 7.16 $ 7.18 $ 7.47 $ 9.62 $ 8.45
========= ======= ========= ========= =======
Total Return ............................. 6.36%(e) 4.20% 28.20%(e) 14.22%(c) (6.60)%
========= ======= ========= ========= =======
Ratios and Supplemental Data:
Ratios to Average Net Assets
Net Expenses ............................ 0.50%(e) 0.32% 0.12%(e) 0.90%(e) 0.90%
Gross Expenses (d) ...................... 0.92%(e) 1.33% 1.93%(e) 1.44%(e) 1.53%
Net Investment Income ................... 6.08%(e) 6.47% 7.09%(e) 3.33%(e) 1.18%
Portfolio Turnover ....................... 200%(e) 127% 84%(e) 46%(e) 107%
Net Assets at end of Period
(000's omitted) ......................... $ 138,402 $65,017 $ 24,913 $ 103,463 $78,802
----------
(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
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
International Equity Fund
--------------------------------------------------------------
Ten Months January 24,
Year Ended Ended Year Ended 1995(b) to
March 31, March 31, May 31, May 31,
1998 1997 (a) 1996 1995
------------ ---------------- ------------ ----------------
<S> <C> <C> <C> <C>
Net Asset Value, Beginning of Period ..... $ 9.03 $ 8.99 $ 7.88 $ 7.00
------ --------- ------- ---------
Investment Operations:
Net investment income ................... 0.09 0.01 0.09 0.08
Net realized and unrealized gain
(loss) on investments .................. 0.79 0.21 1.20 0.80
------ --------- ------- ---------
Total From Investment
Operations ............................ 0.88 0.22 1.29 0.88
------ --------- ------- ---------
Distributions:
From net investment income .............. (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) --
In excess of net realized gains ......... -- -- -- --
------- --------- ------- ---------
Total Distributions .................... (0.24) (0.18) (0.18) --
------- --------- ------- ---------
Net Asset Value, End of Period ........... $ 9.67 $ 9.03 $ 8.99 $ 7.88
======= ========= ======= =========
Total Return ............................. 9.90% 2.41%(c) 16.58% 12.57%(c)
========== ========= ======= =========
Ratios and Supplemental Data:
Ratios to Average Net Assets
Net Expenses ............................ 0.90% 0.90%(e) 0.60% 0.25%(e)
Gross Expenses (d) ...................... 1.43% 1.49%(e) 2.05% 3.32%(e)
Net Investment Income ................... 1.05% 0.45%(e) 1.71% 3.47%(e)
Portfolio Turnover ....................... 52% 45%(e) 19% 8%(e)
Net Assets at end of Period
(000's omitted) ......................... $40,436 $ 38,470 $24,522 $ 8,804
----------
(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
</TABLE>
See Notes to Financial Statements.
<PAGE>
Excelsior Institutional Trust
Financial Highlights -- (continued)
<TABLE>
<CAPTION>
Selected data for a share outstanding throughout each period are as follows:
Optimum Growth Fund
----------------------------------------------------------------
Six Months
Ended June 1,
September 30, Year Ended Year Ended 1996(a) to
1999 March 31, March 31, March 31,
(Unaudited) 1999 1998 1997
------------------ ------------ ------------ ----------------
<S> <C> <C> <C> <C>
Net Asset Value, Beginning of Period ......... $ 27.55 $ 16.33 $ 10.19 $ 10.00
---------- ------- ------- ---------
Investment Operations:
Net investment income (loss) ................ ( 0.02) --(e) 0.03 0.05
Net realized and unrealized gain (loss) on
investments ................................ ( 1.02) 11.22 6.15 0.17
---------- ------- ------- ---------
Total From Investment Operations ........... ( 1.04) 11.22 6.18 0.22
---------- ------- ------- ---------
Distributions:
From net investment income .................. -- --(e) ( 0.04) ( 0.03)
From net realized gains ..................... -- -- -- --
---------- ------- ------- ---------
Total Distributions ........................ -- --(e) ( 0.04) ( 0.03)
---------- ------- ------- ---------
Net Asset Value, End of Period ............... $ 26.51 $ 27.55 $ 16.33 $ 10.19
========== ======= ======= =========
Total Return ................................. ( 3.78)%(b) 68.74% 60.85% 2.23%(b)
========== ======= ======= =========
Ratios and Supplemental Data:
Ratios to Average Net Assets
Net Expenses ................................ 0.80%(d) 0.71% 0.70% 0.70%(d)
Gross Expenses(c) ........................... 0.92%(d) 0.93% 0.97% 1.11%(d)
Net Investment Income ....................... ( 0.15)%(d) 0.00% 0.23% 0.66%(d)
Portfolio Turnover ........................... 38%(d) 22% 19% 20%(d)
Net Assets at end of Period
(000's omitted) ............................. $ 76,758 $88,045 $51,441 $ 27,183
----------
(a) Commencement of Operations
(b) Not annualized
(c) Expense ratios before waiver of fees and reimbursement of expenses, if any, by the adviser and administrators.
(d) Annualized
(e) Amount represents less than $0.01 per share.
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
Value Equity Fund
-------------------------------------------------------------
Six Months
Ended June 1,
September 30, Year Ended Year Ended 1996(a) to
1999 March 31, March 31, March 31,
(Unaudited) 1999 1998 1997
--------------- ------------ ------------ ----------------
<S> <C> <C> <C> <C>
Net Asset Value, Beginning of Period ......... $ 15.33 $ 16.12 $ 11.33 $ 10.00
--------- ------- ------- ---------
Investment Operations:
Net investment income (loss) ............... 0.04 0.13 0.11 0.08
Net realized and unrealized gain (loss) on
investments ............................... 0.64 0.52 5.59 1.31
--------- ------- ------- ---------
Total From Investment Operations .......... 0.68 0.65 5.70 1.39
--------- ------- ------- ---------
Distributions:
From net investment income ................. ( 0.07) ( 0.12) ( 0.11) ( 0.06)
From net realized gains .................... -- ( 1.32) ( 0.80) --
--------- ------- ------- ---------
Total Distributions ....................... ( 0.07) ( 1.44) ( 0.91) ( 0.06)
--------- ------- ------- ---------
Net Asset Value, End of Period ............... $ 15.94 $ 15.33 $ 16.12 $ 11.33
========= ======= ======= =========
Total Return ................................. 4.45%(b) 4.80% 51.67% 13.91%(b)
========= ======= ======= =========
Ratios and Supplemental Data:
Ratios to Average Net Assets
Net Expenses ............................... 0.80%(d) 0.70% 0.70% 0.70%(d)
Gross Expenses(c) .......................... 0.95%(d) 0.97% 1.00% 1.12%(d)
Net Investment Income ...................... 0.47%(d) 0.87% 0.81% 0.94%(d)
Portfolio Turnover ........................... 45%(d) 55% 51% 64%(d)
Net Assets at end of Period
(000's omitted) ............................. $ 43,645 $39,307 $34,766 $ 23,687
----------
(a) Commencement of Operations
(b) Not annualized
(c) Expense ratios before waiver of fees and reimbursement of expenses, if any, by the adviser and administrators.
(d) Annualized
(e) Amount represents less than $0.01 per share.
</TABLE>
See Notes to Financial Statements.
<PAGE>
Excelsior Institutional Trust
Notes to Financial Statements (Unaudited)
1. Significant Accounting Policies:
Excelsior Institutional Trust (the "Trust") is a business trust organized
under the laws of the State of Delaware on May 11, 1994. The 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 six funds (each a "Fund",
collectively, the "Funds"), each having its own investment objectives and
policies: Excelsior Equity Fund ("Equity Fund"), Excelsior Income Fund ("Income
Fund"), Excelsior Total Return Bond Fund ("Total Return Bond Fund"), Excelsior
International Equity Fund ("International Equity Fund"), Excelsior Optimum
Growth Fund ("Optimum Growth Fund") and Excelsior Value Equity Fund ("Value
Equity Fund"). With regard to International Equity Fund, Optimum Growth Fund
and Value Equity Fund, the Trust offers two classes of shares: Institutional
Shares and Shares. At September 30, 1999, International Equity Fund has not
issued Shares. The Financial Highlights of the Shares are presented in separate
semi-annual reports.
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 recognized 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.
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.
<PAGE>
Excelsior Institutional Trust
Notes to Financial Statements (Unaudited) -- (Continued)
b) Forward foreign currency exchange contracts -- The International Equity
Fund's participation in forward foreign 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, 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.
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.
<PAGE>
Excelsior Institutional Trust
Notes to Financial Statements (Unaudited) -- (Continued)
f) Deferred Organization Expense -- Expenses incurred by each Fund in
connection with its organization are being amortized on a straight-line basis
over a five year period.
g) Expense Allocation -- Expenses incurred by the Trust with respect to
any two or more Funds in the Trust are allocated in proportion to the average
net assets of each Fund, except where allocations of direct expenses to each
Fund can otherwise be fairly made. Expenses directly attributable to a Fund are
charged to that Fund and expenses directly attributable to a particular class
of shares in a Fund are charged to such class.
h) Federal Income Taxes -- It is the policy of each Fund to continue to
qualify as a regulated investment company, if such qualification is in the best
interest of the shareholders, by complying with the requirements of the
Internal Revenue Code of 1986, as amended, applicable to regulated investment
companies, and by distributing substantially all of its taxable earnings to its
shareholders.
At September 30, 1999, 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 Equity Growth Equity
Fund Fund Fund Fund Fund Fund
--------------- ---------------- --------------- --------------- -------------- --------------
<S> <C> <C> <C> <C> <C> <C>
Aggregate Cost .......... $123,603,179 $ 77,195,650 $278,603,928 $ 91,130,686 $50,028,546 $ 31,734,131
============ ============ ============ ============ =========== ============
Gross unrealized
appreciation ........... $ 64,991,825 $ 37,847 $ 218,330 $ 17,662,973 $44,515,939 $ 14,216,748
------------ ------------ ------------ ------------ ----------- ------------
Gross unrealized
depreciation ........... (7,266,740) (2,091,580) (7,370,273) (5,993,668) (939,132) (2,005,255)
------------ ------------ ------------ ------------ ----------- ------------
Net unrealized
appreciation
(depreciation) ......... $ 57,725,085 $ (2,053,733) $ (7,151,943) $ 11,669,305 $43,576,807 $ 12,211,493
============ ============ ============ ============ =========== ============
</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 (collectively with U.S. Trust NY, "U.S. Trust") serve as the
investment adviser to the Equity Fund, Income Fund, Total Return Bond Fund,
International Equity 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 other than the
International Equity Fund, and 1.00% of the International Equity Fund's average
daily net assets.
U.S. Trust NY is a state-chartered bank and trust company and a member
bank of the Federal Reserve System. U.S. Trust Company is a Connecticut state
bank and trust company. Each is a wholly-owned subsidiary of U.S. Trust
Corporation, a registered bank holding company.
b) U.S. Trust Company, 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
<PAGE>
Excelsior Institutional Trust
Notes to Financial Statements (Unaudited) -- (Continued)
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, 1999, administration fees charged by U.S. Trust
Company were as follows:
Equity Fund ....................... $ 38,459
Income Fund ....................... $ 15,258
Total Return Bond Fund ............ $ 52,758
International Equity Fund ......... $ 40,680
Optimum Growth Fund ............... $ 20,022
Value Equity Fund ................. $ 9,136
c) From time to time, as they may deem appropriate in their sole
discretion, U.S. Trust 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 has
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; 0.80% of average daily net
assets of the Institutional Shares of the Optimum Growth Fund and the Value
Equity Fund; 0.90% of average daily net assets of the Institutional Shares of
the International Equity Fund; and 1.05% of average daily net assets of the
Shares of the Optimum Growth and Value Equity Fund. For the six months ended
September 30, 1999, U.S. Trust voluntarily waived fees in the following
amounts:
Equity Fund ....................... $ 175,857
Income Fund ....................... $ 148,667
Total Return Bond Fund ............ $ 488,767
International Equity Fund ......... $ 246,783
Optimum Growth Fund ............... $ 50,896
Value Equity Fund ................. $ 33,686
d) The Trust, on behalf of the Funds, has entered 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 organization an administrative
service fee at the annual rate of up to 0.40% of the average daily net asset
value of its shares held by the service organizations' customers. Such services
may include assisting in processing purchase, exchange or redemption requests;
transmitting and receiving funds in connection with customers orders to
purchase, exchange or redeem shares; and providing periodic statements.
Until further notice to the Trust, U.S. Trust and the administrators have
voluntarily agreed to waive investment advisory and administration fees payable
by each Fund in an amount equal to administrative
<PAGE>
Excelsior Institutional Trust
Notes to Financial Statements (Unaudited) -- (Continued)
service fees payable (including fees paid to affiliates of U.S. Trust) by that
Fund. For the six months ended September 30, 1999, U.S. Trust and the
Administrators waived investment advisory and administration fees in amounts
equal to the administrative service fees for the Funds as follows:
U.S. Trust Administrators
------------ ---------------
Optimum Growth Fund .......... $11,602 $1,158
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 Shares of the
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 Shares, in an amount not to exceed the annual rate of
0.25% of the average daily net asset value of each Fund's outstanding Shares.
f) Trustees receive an annual fee of $4,000, plus a meeting fee of $250
for each meeting attended. In addition, the Trust reimburses independent
Trustees for reasonable expenses incurred when acting in their capacity as
Trustees.
3. Purchases and Sales of Investment Securities:
a) Investment transactions (excluding short-term investments) for the six
months ended September 30, 1999 were as follows:
Cost of Proceeds
Purchases From Sales
--------------- ---------------
Equity Fund ....................... $ 21,341,522 $ 20,748,780
Income Fund ....................... $ 70,198,507 $ 60,603,548
Total Return Bond Fund ............ $ 157,254,088 $ 140,984,560
International Equity Fund ......... $ 26,053,132 $ 20,049,770
Optimum Growth Fund ............... $ 18,345,218 $ 21,057,038
Value Equity Fund ................. $ 11,422,157 $ 9,718,090
b) Investment transactions in U.S. Government and Agency Obligations
(excluding short-term investments) for the six months ended September 30, 1999
were as follows:
Cost of Proceeds
Purchases From Sales
--------------- ---------------
Equity Fund ....................... -- --
Income Fund ....................... $ 49,804,222 $ 35,412,071
Total Return Bond Fund ............ $ 87,077,041 $ 83,244,740
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
<PAGE>
Excelsior Institutional Trust
Notes to Financial Statements (Unaudited) -- (Continued)
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, 1999, the Portfolios had
no borrowings under the agreement.
5. Year 2000 Risk:
The Funds depend on the smooth functioning of computer systems in almost
every aspect of their business. Like other mutual funds, businesses and
individuals around the world, the Funds could be adversely affected if the
computer systems used by their service providers do not properly process dates
on and after January 1, 2000, and distinguish between the year 2000 and the
year 1900. This is commonly known as the "Year 2000 Problem." The investment
adviser and the Funds' other service providers advise that they are taking
steps to address the Year 2000 Problem with respect to the computer systems
that they use. Currently, they do not anticipate that the transition to the
21st Century will have any material impact on their ability to continue to
service the Funds at current levels. At this time, however, there can be no
assurance that their efforts will be sufficient to avoid any adverse impact on
the Funds as a result of the Year 2000 Problem. In addition, the Funds and
their shareholders may experience losses as a result of computer difficulties
experienced by issuers of portfolio securities or third parties, such as
custodians, banks, broker-dealers or others with which the Funds do business.
Furthermore, many foreign countries are not as prepared as the U.S. for
the year 2000 transition. As a result, computer difficulties in foreign markets
and with foreign institutions as a result of the Year 2000 Problem may add to
the possibility of losses to the Funds and their shareholders.
