<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) 446-1012
Distributor
Edgewood Services, Inc.
5800 Corporate Drive
Pittsburgh, PA 15237
SHARES OF THE FUNDS ARE NOT DE-
POSITS OR OBLIGATIONS OF, OR
GUARANTEED OR ENDORSED BY, ANY
BANK, AND THE SHARES ARE NOT FED-
ERALLY INSURED BY THE FEDERAL DE-
POSIT 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 SA00
[LOGO OF EXCELSIOR FUNDS]
Institutional Shares
Equity Fund
Value Equity Fund
Optimum Growth Fund
Income Fund
Total Return Bond Fund
International Equity Fund
Semi-Annual Report
September 30, 2000
<PAGE>
Excelsior Institutional Trust
Schedule of Investments
September 30, 2000 (Unaudited)
Equity Fund
<TABLE>
<CAPTION>
Shares Value
---------- ------------
<C> <S> <C>
COMMON STOCKS -- 98.18%
CAPITAL GOODS -- 8.78%
54,394 +Ford Motor Co....................................... $ 1,376,848
157,078 General Electric Co.................................. 9,061,437
48,450 Illinois Tool Works, Inc............................. 2,707,144
43,920 Texas Instruments, Inc............................... 2,072,475
4,074 Visteon Corp......................................... 61,619
------------
15,279,523
------------
CONSUMER CYCLICAL -- 23.11%
44,048 AT&T Corp............................................ 1,293,910
74,310 +AT&T Corp. - Liberty Media Group, Class A........... 1,337,580
57,497 Bristol-Myers Squibb Co.............................. 3,284,516
3,912 +Brocade Communications Systems, Inc................. 923,721
4,286 +Commerce One, Inc................................... 336,451
46,731 +General Motors Corp., Class H....................... 1,737,459
50,975 Home Depot, Inc...................................... 2,704,861
30,839 Honeywell International, Inc......................... 1,098,639
67,023 McDonald's Corp...................................... 2,023,257
35,621 Medtronic, Inc....................................... 1,845,613
36,263 Merck & Co., Inc..................................... 2,699,327
123,246 Pfizer, Inc.......................................... 5,538,367
48,152 Schering-Plough Corp................................. 2,239,068
1,000 +StorageNetworks, Inc................................ 102,188
58,058 Time Warner, Inc..................................... 4,543,038
4,607 +VERITAS Software Corp............................... 654,194
71,073 +Viacom, Inc., Class B............................... 4,157,771
76,779 Wal-Mart Stores, Inc................................. 3,694,989
------------
40,214,949
------------
CONSUMER STAPLES -- 7.31%
28,637 Bestfoods............................................ 2,083,342
48,814 Coca-Cola Co......................................... 2,690,872
72,482 Gillette Co., Class H................................ 2,237,882
6,466 +Human Genome Sciences, Inc.......................... 1,118,618
22,999 Johnson & Johnson Co................................. 2,160,468
36,332 Procter & Gamble Co.................................. 2,434,244
------------
12,725,426
------------
ENERGY -- 7.04%
46,643 BP Amoco plc ADR..................................... 2,472,079
23,369 Enron Corp........................................... 2,047,709
</TABLE>
<TABLE>
<CAPTION>
Shares Value
---------- ------------
<C> <S> <C>
COMMON STOCKS -- (continued)
ENERGY -- (continued)
46,403 Exxon Mobil Corp..................................... $ 4,135,667
2,500 +Proton Energy Systems, Inc.......................... 71,562
56,722 Royal Dutch Petroleum Co............................. 3,399,775
4,000 +Southern Energy, Inc................................ 125,500
------------
12,252,292
------------
FINANCIAL -- 16.93%
70,435 American International Group, Inc.................... 6,739,749
24,486 Capital One Financial Corp........................... 1,715,550
89,544 Citigroup, Inc....................................... 4,840,973
29,690 Goldman Sachs Group, Inc............................. 3,382,804
23,190 Household International, Inc......................... 1,313,134
71,460 Mellon Financial Corp................................ 3,313,958
57,669 Morgan Stanley Dean Witter & Co...................... 5,273,109
62,580 Wells Fargo Co....................................... 2,874,769
------------
29,454,046
------------
HEALTH CARE -- 0.63%
18,317 Pharmacia Corp....................................... 1,102,455
------------
INFORMATION TECHNOLOGY -- 0.49%
7,356 PE Corp. - PE Biosystems Group....................... 856,974
------------
MANUFACTURING -- 0.24%
4,360 +JDS Uniphase Corp................................... 412,565
------------
TECHNOLOGY -- 31.85%
34,573 +America Online, Inc................................. 1,858,299
12,963 +Amgen, Inc.......................................... 903,359
3,590 +Ariba, Inc.......................................... 514,267
1,200 +Avici Systems, Inc.................................. 113,925
2,500 +Ciphergen Biosystems, Inc........................... 80,000
146,492 +Cisco Systems, Inc.................................. 8,093,683
800 +Corvis Corp......................................... 49,150
37,993 +EMC Corp............................................ 3,766,056
6,234 +Genentech, Inc...................................... 1,157,576
3,061 +Inktomi Corp........................................ 348,954
141,434 Intel Corp........................................... 5,869,511
28,974 International Business Machines Corp................. 3,259,575
</TABLE>
See Notes to Financial Statements
<PAGE>
Excelsior Institutional Trust
Schedule of Investments
September 30, 2000 (Unaudited)
Equity Fund -- (continued)
<TABLE>
<CAPTION>
Shares Value
---------- ------------
<C> <S> <C>
COMMON STOCKS -- (continued)
TECHNOLOGY -- (continued)
33,754 Lucent Technologies, Inc............................ $ 1,031,607
117,477 +Microsoft Corp..................................... 7,085,331
22,120 Motorola, Inc....................................... 624,890
39,435 +Nextel Communications, Inc., Class A............... 1,843,586
73,221 Nokia Corp., Class A, ADR........................... 2,915,111
25,957 Nortel Networks Corp................................ 1,546,064
54,300 +Oracle Corp........................................ 4,276,125
3,610 +QUALCOMM, Inc...................................... 257,212
31,649 SBC Communications, Inc. ........................... 1,582,450
2,629 +SDL, Inc........................................... 814,333
200 +Sonus Networks, Inc................................ 25,275
31,489 +Sun Microsystems, Inc.............................. 3,703,894
1,000 +Vastera, Inc. ..................................... 22,125
102,592 +WorldCom, Inc...................................... 3,116,232
6,204 +Yahoo!, Inc........................................ 566,503
------------
55,425,093
------------
TELECOMMUNICATIONS -- 0.83%
2,291 +Broadcom Corp., Class A............................ 558,431
18,278 Verizon Communications.............................. 885,341
------------
1,443,772
------------
UTILITIES -- 0.97%
25,116 Emerson Electric Co................................. 1,682,772
------------
TOTAL COMMON STOCKS
(Cost $117,507,636)................................ 170,849,867
------------
</TABLE>
<TABLE>
<CAPTION>
Principal
Amount Value
---------- ------------
<C> <S> <C>
DEMAND NOTES -- 1.92%
$1,700,000 Associates Corp. of North America Master Notes...... $ 1,700,000
1,633,000 General Electric Co. Promissory Notes............... 1,633,000
------------
TOTAL DEMAND NOTES
(Cost $3,333,000).................................. 3,333,000
------------
</TABLE>
<TABLE>
<CAPTION>
<S> <C> <C>
TOTAL INVESTMENTS
(Cost $120,840,636)...................................... 100.10% $174,182,867
OTHER ASSETS AND LIABILITIES (NET)........................ (0.10) (173,014)
------ ------------
NET ASSETS................................................ 100.00% $174,009,853
====== ============
</TABLE>
--------
+ Non-income producing security
ADR--American Depositary Receipt
See Notes to Financial Statements
<PAGE>
Excelsior Institutional Trust
Schedule of Investments
September 30, 2000 (Unaudited)
Value Equity Fund
<TABLE>
<CAPTION>
Shares Value
--------- -----------
<C> <S> <C>
COMMON STOCKS -- 99.35%
COMMUNICATIONS SERVICES -- 4.04%
60,100 +Global Crossing Ltd................................... $ 1,863,100
-----------
CONSUMER CYCLICAL -- 32.85%
60,000 +Adelphia Communications Corp., Class A................ 1,653,750
42,000 Black & Decker Corp. .................................. 1,435,875
65,000 Centex Corp. .......................................... 2,088,125
50,000 +General Motors Corp., Class H......................... 1,859,000
55,000 Polaris Industries, Inc. .............................. 1,938,750
70,000 Sherwin-Williams Co. .................................. 1,496,250
100,000 TJX Companies, Inc. ................................... 2,250,000
55,000 Viad Corp.............................................. 1,460,937
19,700 Young & Rubicam, Inc. ................................. 975,150
-----------
15,157,837
-----------
CONSUMER STAPLES -- 18.03%
91,520 +AT&T Corp. - Liberty Media Group, Class A............. 1,647,360
42,000 Avon Products, Inc. ................................... 1,716,750
87,000 IMS Health, Inc. ...................................... 1,805,250
32,000 +Suiza Foods Corp. .................................... 1,622,000
70,000 +USA Networks, Inc. ................................... 1,531,250
-----------
8,322,610
-----------
ENERGY -- 9.28%
22,000 Conoco, Inc., Class B.................................. 592,625
100,000 +Ocean Energy, Inc. ................................... 1,543,750
2,500 +Proton Energy Systems, Inc. .......................... 71,562
15,000 +Southern Energy, Inc. ................................ 470,625
38,000 Williams Cos., Inc. ................................... 1,605,500
-----------
4,284,062
-----------
FINANCIAL -- 17.45%
20,000 Donaldson, Lufkin & Jenrette, Inc. .................... 1,788,750
11,000 Lehman Brothers Holdings, Inc. ........................ 1,625,250
40,000 +Stilwell Financial, Inc. ............................. 1,740,000
22,000 USA Education, Inc. ................................... 1,060,125
25,000 XL Capital Ltd., Class A............................... 1,837,500
-----------
8,051,625
-----------
</TABLE>
<TABLE>
<CAPTION>
Shares Value
--------- -----------
<C> <S> <C>
COMMON STOCKS -- (continued)
RAW/INTERMEDIATE MATERIALS -- 3.00%
80,000 Tredegar Corp. ....................................... $ 1,385,000
-----------
TECHNOLOGY -- 14.70%
85,000 +BMC Software, Inc.................................... 1,620,313
1,700 +Durect Corp. ........................................ 25,500
57,000 Harris Corp. ......................................... 1,620,938
2,908 Intermedia Communications, Inc. ...................... 85,604
25,000 +Plantronics, Inc. ................................... 950,000
20,000 Texas Instruments, Inc. .............................. 943,750
50,000 +Vishay Intertechnology, Inc. ........................ 1,537,500
-----------
6,783,605
-----------
TOTAL COMMON STOCKS
(Cost $37,880,670)................................... 45,847,839
-----------
<CAPTION>
Principal
Amount
---------
<C> <S> <C>
CONVERTIBLE BONDS -- 1.81%
TECHNOLOGY -- 1.81%
$22,000 Intermedia Communications, Inc. (Cost $578,407)....... 836,000
-----------
DEMAND NOTES -- 0.02%
6,000 General Electric Co. Promissory Notes (Cost $6,000)... 6,000
-----------
</TABLE>
<TABLE>
<S> <C> <C>
TOTAL INVESTMENTS
(Cost $38,465,077)........................................ 101.18% $46,689,839
OTHER ASSETS AND LIABILITIES (NET)......................... (1.18) (542,375)
------ -----------
NET ASSETS................................................. 100.00% $46,147,464
====== ===========
</TABLE>
--------
+ Non-income producing security
See Notes to Financial Statements
<PAGE>
Excelsior Institutional Trust
Schedule of Investments
September 30, 2000 (Unaudited)
Optimum Growth Fund
<TABLE>
<CAPTION>
Shares Value
---------- ------------
<C> <S> <C>
COMMON STOCKS -- 96.93%
CAPITAL GOODS -- 4.67%
82,200 General Electric Co. ................................ $ 4,741,913
------------
COMMUNICATIONS SERVICES -- 6.01%
76,000 +America Online, Inc. ............................... 4,085,000
33,800 +Exodus Communications, Inc. ........................ 1,670,987
3,000 +VoiceStream Wireless Corp. ......................... 348,188
------------
6,104,175
------------
CONSUMER CYCLICAL -- 12.04%
5,000 Abbott Laboratories.................................. 237,813
4,500 +Best Buy Co., Inc. ................................. 286,312
25,000 +Clear Channel Communications, Inc. ................. 1,412,500
3,500 +DoubleClick, Inc. .................................. 112,000
18,000 Dow Jones & Co., Inc. ............................... 1,089,000
7,500 +General Motors Corp., Class H....................... 278,850
40,000 Harley-Davidson, Inc. ............................... 1,915,000
72,000 Home Depot, Inc. .................................... 3,820,500
5,000 Johnson & Johnson Co. ............................... 469,687
13,200 Omnicom Group, Inc. ................................. 962,775
34,000 Wal-Mart Stores, Inc. ............................... 1,636,250
------------
12,220,687
------------
CONSUMER STAPLES -- 0.38%
7,000 Coca-Cola Co. ....................................... 385,875
------------
ENERGY -- 1.59%
7,500 Apache Corp. ........................................ 443,438
8,000 +BJ Services Co. .................................... 489,000
7,500 Diamond Offshore Drilling, Inc. ..................... 307,500
7,500 +Noble Drilling Corp. ............................... 376,875
------------
1,616,813
------------
FINANCIAL -- 9.07%
37,500 American International Group, Inc. .................. 3,588,281
70,000 Citigroup, Inc. ..................................... 3,784,375
20,000 Morgan Stanley Dean
Witter & Co. ....................................... 1,828,750
------------
9,201,406
------------
HEALTH CARE -- 14.56%
9,500 American Home Products Corp. ........................ 537,344
14,000 +Amgen, Inc. ........................................ 975,625
6,500 +Biogen, Inc. ....................................... 396,500
8,500 +Genentech, Inc. .................................... 1,578,344
5,500 +Immunex Corp. ...................................... 239,250
5,500 +MedImmune, Inc. .................................... 424,875
83,710 Medtronic, Inc. ..................................... 4,337,224
13,500 PE Corp. - PE Biosystems Group....................... 1,572,750
</TABLE>
<TABLE>
<CAPTION>
Shares Value
---------- ------------
<C> <S> <C>
COMMON STOCKS -- (continued)
HEALTH CARE -- (continued)
81,000 Pfizer, Inc. ........................................ $ 3,639,937
23,200 Schering-Plough Corp. ............................... 1,078,800
------------
14,780,649
------------
TECHNOLOGY -- 48.61%
24,500 +Applied Materials, Inc. ............................ 1,451,625
3,900 +Broadcom Corp., Class A............................. 950,625
2,400 +Brocade Communications Systems, Inc. ............... 566,700
83,000 +Cisco Systems, Inc. ................................ 4,585,750
103,000 +Dell Computer Corp. ................................ 3,167,250
87,800 +EMC Corp. .......................................... 8,703,175
1,000 Hewlett-Packard Co. ................................. 97,000
2,000 +Inktomi Corp. ...................................... 228,000
84,200 Intel Corp. ......................................... 3,494,300
20,000 +JDS Uniphase Corp. ................................. 1,892,500
3,500 +Juniper Networks, Inc. ............................. 766,500
45,000 +Microsoft Corp. .................................... 2,714,062
88,000 Nokia Corp., Class A, ADR............................ 3,503,500
20,000 Nortel Networks Corp. ............................... 1,191,250
33,000 +Oracle Corp. ....................................... 2,598,750
5,200 +PMC-Sierra, Inc. ................................... 1,119,300
12,000 +QUALCOMM, Inc. ..................................... 855,000
3,200 +Redback Networks, Inc. ............................. 527,000
6,600 +Siebel Systems, Inc. ............................... 734,250
36,000 +Solectron Corp. .................................... 1,660,500
33,000 +Sun Microsystems, Inc. ............................. 3,881,625
27,000 Texas Instruments, Inc. ............................. 1,274,063
10,000 +VeriSign, Inc. ..................................... 2,025,625
7,200 +VERITAS Software Corp. ............................. 1,025,100
3,500 +Yahoo!, Inc. ....................................... 319,594
------------
49,333,044
------------
TOTAL COMMON STOCKS
(Cost $53,647,812).................................. 98,384,562
------------
<CAPTION>
Principal
Amount
----------
<C> <S> <C>
DEMAND NOTES -- 3.37%
$3,419,000 Associates Corp. of North America Master Notes
(Cost $3,419,000)................................... 3,419,000
------------
</TABLE>
<TABLE>
<S> <C> <C>
TOTAL INVESTMENTS
(Cost $57,066,812)....................................... 100.30% $101,803,562
OTHER ASSETS AND LIABILITIES (NET)........................ (0.30) (303,833)
------ ------------
NET ASSETS................................................ 100.00% $101,499,729
====== ============
</TABLE>
--------
+ Non-income producing security
ADR--American Depositary Receipt
See Notes to Financial Statements
<PAGE>
Excelsior Institutional Trust
Schedule of Investments
September 30, 2000 (Unaudited)
Income Fund
<TABLE>
<CAPTION>
Principal Coupon Maturity
Amount Rate Date Value
---------- ------ -------- -----------
<C> <S> <C> <C> <C>
ASSET BACKED SECURITIES -- 18.56%
$2,600,000 CIT Group RV Trust, Series 99-A,
Class A4............................ 6.16% 06/15/13 $ 2,554,474
2,040,000 Citibank Credit Card
Issuance Trust, Series 00-A1,
Class A1............................ 6.90 10/17/07 2,038,756
2,708,049 Commercial Mortgage Acceptance
Corp., Series 99-C1, Class A1....... 6.79 08/15/08 2,683,494
2,000,000 Commercial Mortgage Asset Trust,
Series 99-C1, Class A3.............. 6.64 09/17/10 1,927,694
1,815,906 Donaldson, Lufkin & Jenrette,
Series 00-CF1, Class A1............. 7.45 08/10/09 1,849,583
1,722,698 Government National Mortgage
Association, Series 99-19, Class A.. 6.50 08/16/25 1,675,547
1,843,083 Merrill Lynch Mortgage Investors,
Inc., Series 95-C2, Class C......... 7.33 06/15/21 1,815,140
1,812,833 Morgan Stanley Dean Witter Capital
I, Series 00-LIFE, Class A1......... 7.42 11/15/08 1,846,095
1,263,949 PNC Mortgage Acceptance Corp.,
Series 00-C1, Class A1.............. 7.52 06/15/08 1,290,198
1,115,000 Salomon Brothers Mortgage Securities
VII, Series 00-C1, Class A2......... 7.52 12/18/09 1,136,470
-----------
TOTAL ASSET BACKED SECURITIES
(Cost $18,809,672)................................... 18,817,451
-----------
CORPORATE BONDS -- 20.04%
1,660,000 Avnet, Inc.......................... 7.88 02/15/05 1,652,449
2,000,000 Conagra Foods, Inc.................. 7.88 09/15/10 2,018,474
1,185,000 Countrywide Home Loans, Inc......... 6.85 06/15/04 1,172,465
6,660,000 Ford Motor Credit Co................ 5.75 02/23/04 6,353,234
1,455,000 General Motors Corp................. 6.25 05/01/05 1,409,587
2,080,000 Household Finance Corp.............. 5.88 09/25/04 1,987,186
2,080,000 Lehman Brothers Holdings, Inc....... 7.75 01/15/05 2,113,267
1,000,000 Mercantile Safe Deposit & Trust
Co. ................................ 6.10 05/17/04 920,000
1,290,000 Norwest Corp........................ 6.50 06/01/05 1,262,474
1,400,000 Viacom, Inc......................... 7.70 07/30/10 1,428,407
-----------
TOTAL CORPORATE BONDS
(Cost $20,426,600)................................... 20,317,543
-----------
</TABLE>
<TABLE>
<CAPTION>
Principal Coupon Maturity
Amount Rate Date Value
---------- ------ -------- ------------
<C> <S> <C> <C> <C>
U.S. GOVERNMENT & AGENCY OBLIGATIONS -- 61.32%
2,500,000 Federal Home Loan Mortgage
Corporation..................... 7.00% 03/15/10 $ 2,537,688
Federal National Mortgage
Association
3,244,193 Pool #251502.................... 6.50 02/01/13 3,181,947
11,853 Pool #454758.................... 5.50 12/01/28 10,703
515,066 Pool #496120.................... 7.00 04/01/29 504,797
5,074,637 Pool #504052.................... 7.00 06/01/29 4,973,459
9,771,298 Pool #521423.................... 7.50 12/01/29 9,757,247
4,754,405 Pool #525818.................... 7.50 12/01/29 4,747,568
1,947,239 Pool #531743.................... 7.00 02/01/30 1,908,415
Government National Mortgage
Association
1,856,549 Pool #781036.................... 8.00 10/15/17 1,891,010
650,771 Pool #471660.................... 7.50 03/15/28 652,967
1,497,512 Pool #472028.................... 6.50 05/15/28 1,443,040
1,483,343 Pool #475847.................... 6.50 06/15/28 1,429,386
1,851,835 Pool #80205..................... 7.00 06/20/28 1,869,532
3,527,946 Pool #2687...................... 6.00 12/20/28 3,294,883
3,722,603 Pool #503711.................... 7.00 05/15/29 3,668,160
1,128,185 Pool #80311..................... 5.50 08/20/29 1,097,546
2,252,219 Pool #525556.................... 8.00 01/15/30 2,294,025
8,918,000 U.S. Treasury Bonds............. 7.25 05/15/16 9,924,066
1,412,142 U.S. Treasury Inflation Index
Bonds........................... 3.88 04/15/29 1,402,876
2,909,790 U.S. Treasury Inflation Index
Bonds........................... 3.63 07/15/02 2,907,971
6,470,000 U.S. Treasury Strip Bonds....... 6.78 02/15/15 2,690,673
------------
TOTAL U.S. GOVERNMENT & AGENCY OBLIGATIONS
(Cost $61,963,847)............................... 62,187,959
------------
<CAPTION>
Shares
----------
<C> <S> <C> <C> <C>
SHORT-TERM INVESTMENTS -- 0.52%
264,386 Dreyfus Government Cash Management Fund.......... 264,386
259,838 Fidelity U.S. Treasury II Fund................... 259,838
------------
TOTAL SHORT-TERM INVESTMENTS
(Cost $524,224) ................................. 524,224
------------
</TABLE>
<TABLE>
<S> <C> <C>
TOTAL INVESTMENTS
(Cost $101,724,343)....................................... 100.44% $101,847,177
OTHER ASSETS AND LIABILITIES (NET)........................ (0.44) (444,969)
------ ------------
NET ASSETS................................................ 100.00% $101,402,208
====== ============
</TABLE>
See Notes to Financial Statements
<PAGE>
Excelsior Institutional Trust
Schedule of Investments
September 30, 2000 (Unaudited)
Total Return Bond Fund
<TABLE>
<CAPTION>
Principal Coupon Maturity
Amount Rate Date Value
----------- ------ -------- ------------
<C> <S> <C> <C> <C>
ASSET BACKED SECURITIES -- 31.76%
$6,580,000 +AESOP Funding II, Series 97-1,
Class A2........................ 6.40% 10/20/03 $ 6,530,189
4,125,000 Asset Securitization Corp.,
Series 97-D4,
Class A4........................ 7.49 04/14/29 4,158,571
9,185,000 Capital Auto Receivables Asset
Trust, Series 99-1, Class A3.... 5.68 08/15/04 9,079,556
12,000,000 Citibank Credit Card Issuance
Trust, Series 00-C1,
Class C1........................ 6.90 10/17/07 11,992,680
7,790,000 Commercial Mortgage Asset Trust,
Series 99-C1,
Class A3........................ 6.64 09/17/10 7,508,370
5,827,678 Donaldson, Lufkin & Jenrette,
Series 00-CF1, Class A1......... 7.45 08/10/09 5,935,756
4,740 LB Commercial Conduit Mortgage
Trust, Series 99-C1,
Class A1........................ 6.41 08/15/07 4,647
3,635,000 MBNA Master Credit Card Trust,
Series 00-I, Class A............ 6.90 01/15/08 3,654,556
5,380,000 MBNA Master Credit Card Trust,
Series 99-J, Class A............ 7.00 02/15/12 5,399,422
4,635,000 Morgan Stanley Capital I,
Series 99-CAM1, Class A3........ 6.92 11/15/08 4,590,875
3,439,985 Morgan Stanley Dean Witter
Capital I, Series 00-LIFE,
Class A1........................ 7.42 11/15/08 3,503,102
</TABLE>
<TABLE>
<CAPTION>
Principal Coupon Maturity
Amount Rate Date Value
----------- ------ -------- ------------
<C> <S> <C> <C> <C>
ASSET BACKED SECURITIES -- (continued)
$4,450,000 Mortgage Capital Funding, Inc.,
Series 98-MC1, Class C............ 6.95% 01/18/08 $ 4,338,509
8,130,000 Nationslink Funding Corp., Series
99-2, Class B..................... 7.53 11/20/08 8,164,471
3,525,000 Peco Energy Transition Trust,
Series 99-A, Class A4............. 5.80 03/01/07 3,401,942
3,870,843 PNC Mortgage Acceptance Corp.,
Series 00-C1, Class A1............ 7.52 07/15/08 3,951,231
4,330,000 Salomon Brothers Mortgage
Securities VII, Series 00-C1,
Class A2.......................... 7.52 12/18/09 4,413,376
------------
TOTAL ASSET BACKED SECURITIES
(Cost $86,455,775)................................. 86,627,253
------------
CORPORATE BONDS -- 27.84%
3,400,000 Avnet, Inc........................ 7.88 02/15/05 3,384,533
10,380,000 Bank of America Corp.............. 6.63 06/15/04 10,279,491
5,250,000 Bank One Corp..................... 7.63 08/01/05 5,357,399
5,070,000 Boeing Capital Corp............... 7.38 09/27/10 5,126,936
5,675,000 Conagra Foods, Inc................ 7.88 09/15/10 5,727,420
5,370,000 Duke Capital Corp................. 7.25 10/01/04 5,404,663
9,000,000 Ford Motor Credit Co.............. 5.75 02/23/04 8,585,451
4,402,000 Ford Motor Credit Co.............. 5.80 01/12/09 3,900,234
7,965,000 General Motors Acceptance Corp.... 7.50 07/15/05 8,069,525
</TABLE>
See Notes to Financial Statements
<PAGE>
Excelsior Institutional Trust
Schedule of Investments
September 30, 2000 (Unaudited)
Total Return Bond Fund -- (continued)
<TABLE>
<CAPTION>
Principal Coupon Maturity
Amount Rate Date Value
----------- ------ -------- ------------
<C> <S> <C> <C> <C>
CORPORATE BONDS -- (continued)
$5,210,000 Household Finance Corp............ 5.88% 09/25/04 $ 4,977,519
4,760,000 Lehman Brothers Holdings Corp..... 6.63 04/01/04 4,665,309
7,035,000 Mercantile Safe Deposit & Trust... 6.10 05/17/04 6,472,200
3,900,000 Viacom, Inc....................... 7.70 07/30/10 3,979,135
------------
TOTAL CORPORATE BONDS
(Cost $76,309,915)................................. 75,929,815
------------
U.S. GOVERNMENT & AGENCY OBLIGATIONS -- 38.60%
7,800,000 Federal Home Loan Mortgage
Association....................... 7.00 03/15/10 7,917,585
Federal National
Mortgage Association
3,042,819 Pool #525818...................... 7.50 12/1/29 3,038,444
7,495,080 Pool #548500...................... 7.50 08/01/30 7,484,302
Government National
Mortgage Association
24,668 Pool #356873...................... 6.50 05/15/23 23,771
3,098,076 Pool #80185....................... 7.00 04/20/28 3,127,683
1,844,457 Pool #80205....................... 7.00 06/20/28 1,862,084
4,618,735 Pool #2687........................ 6.00 12/20/28 4,313,612
3,619,594 Pool #80311....................... 5.50 08/20/29 3,521,294
1,219,229 Pool #479087...................... 8.00 01/15/30 1,241,860
9,382,622 Pool #479088...................... 8.00 01/15/30 9,556,782
52,159,000 U.S. Treasury Bonds............... 7.25 05/15/16 58,043,213
3,008,021 U.S. Treasury Inflation Index
Bonds............................. 3.88 04/15/29 2,988,282
1,805,148 U.S. Treasury Inflation Index
Bonds............................. 3.63 07/15/02 1,804,020
355,000 U.S. Treasury Notes............... 6.75 05/15/05 367,758
------------
TOTAL U.S. GOVERNMENT & AGENCY OBLIGATIONS
(Cost $105,568,163)................................ 105,290,690
------------
</TABLE>
<TABLE>
<CAPTION>
Shares Value
----------- ------------
<C> <S> <C> <C> <C>
SHORT-TERM INVESTMENTS --
0.13%
171,196 Dreyfus
Government
Cash
Management
Fund........ $ 171,196
180,246 Fidelity
U.S.
Treasury II
Fund........ 180,246
------------
TOTAL SHORT-
TERM
INVESTMENTS
(Cost
$351,442)....... 351,442
------------
</TABLE>
<TABLE>
<S> <C> <C>
TOTAL INVESTMENTS
(Cost $268,685,295)...................................... 98.33% $268,199,200
OTHER ASSETS AND LIABILITIES (NET)........................ 1.67 4,554,006
------ ------------
NET ASSETS................................................ 100.00% $272,753,206
====== ============
</TABLE>
--------
+ 144A Security--certain conditions for public sale may exist.
See Notes to Financial Statements
<PAGE>
Excelsior Institutional Trust
Schedule of Investments
September 30, 2000 (Unaudited)
International Equity Fund
<TABLE>
<CAPTION>
Shares Value
---------- -----------
<C> <S> <C>
COMMON STOCKS -- 96.12%
AUSTRALIA -- 2.75%
70,200 Brambles Industries Ltd. ............................. $ 1,834,486
145,400 ERG Ltd. ............................................. 696,797
-----------
2,531,283
-----------
CANADA -- 6.64%
78,800 Bombardier, Inc., Class B............................. 1,359,703
17,300 +JDS Uniphase Corp. .................................. 1,637,013
35,484 Nortel Networks Corp. ................................ 2,127,674
16,050 +Sierra Wireless, Inc. ............................... 989,011
-----------
6,113,401
-----------
CHILE -- 0.56%
14,000 Vina Concha Y Toro S.A., ADR.......................... 518,000
-----------
EGYPT -- 0.47%
19,200 +Egyptian Company for Mobile Services (MobiNil)....... 426,544
-----------
FINLAND -- 2.27%
42,400 +Nokia Oyj............................................ 1,719,987
14,500 Sonera Oyj............................................ 368,908
-----------
2,088,895
-----------
FRANCE -- 14.34%
18,620 Axa................................................... 2,434,439
22,920 Carrefour S.A. ....................................... 1,694,718
14,170 Dassault Systemes S.A. ............................... 1,153,513
27,700 +L'Oreal S.A. ........................................ 2,152,153
12,260 STMicroelectronics N.V. .............................. 601,633
22,042 Total Fina EIf S.A., Class B.......................... 3,228,442
26,000 Vivendi............................................... 1,933,939
-----------
13,198,837
-----------
GERMANY -- 8.93%
8,500 Allianz AG............................................ 2,812,083
7,500 +Consors Discount Broker AG........................... 801,685
14,000 Deutsche Telekom AG................................... 489,139
10,710 SAP AG................................................ 2,133,504
15,100 Siemens AG............................................ 1,976,890
-----------
8,213,301
-----------
</TABLE>
<TABLE>
<CAPTION>
Shares Value
---------- -----------
<C> <S> <C>
COMMON STOCKS -- (continued)
HONG KONG -- 4.42%
42,645 +China Mobile (Hong Kong) Ltd. ADR.................... $ 1,383,297
440,000 +Johnson Electric Holdings Ltd. ...................... 945,357
824,000 +Li & Fung Ltd. ...................................... 1,738,686
-----------
4,067,340
-----------
INDIA -- 0.86%
6,000 Infosys Technologies Ltd. ............................ 792,000
-----------
ISRAEL -- 0.94%
11,300 +Gilat Satellite Networks Ltd. ....................... 867,981
-----------
JAPAN -- 15.87%
9,800 Don Quijote Co., Ltd. ................................ 1,030,527
101,000 Furukawa Electric Co., Ltd. .......................... 2,795,669
8,100 Kyocera Corp. ........................................ 1,239,336
10,400 Nintendo Co., Ltd. ................................... 1,902,745
190 NTT Data Corp. ....................................... 1,761,869
29 NTT DoCoMo, Inc. ..................................... 833,642
3,400 Rohm Co., Ltd. ....................................... 933,550
24,800 Sony Corp. ........................................... 2,520,475
15,160 Tokyo Seimitsu Co., Ltd. ............................. 1,588,539
-----------
14,606,352
-----------
NETHERLANDS -- 0.43%
19,220 Wolters Kluwer N.V. .................................. 390,516
-----------
PORTUGAL -- 2.04%
357,550 Banco Comercial Portugues S.A. ....................... 1,879,365
-----------
RUSSIA -- 0.93%
14,900 Lukoil Holding Co., ADR............................... 858,240
-----------
SINGAPORE -- 4.73%
466,232 Datacraft Asia Ltd. .................................. 3,869,726
186,000 Natsteel Electronics Ltd. ............................ 481,366
-----------
4,351,092
-----------
SOUTH KOREA -- 0.94%
4,760 Samsung Electronics................................... 862,350
-----------
</TABLE>
See Notes to Financial Statements
<PAGE>
Excelsior Institutional Trust
Schedule of Investments
September 30, 2000 (Unaudited)
International Equity Fund -- (continued)
<TABLE>
<CAPTION>
Shares Value
---------- -----------
<C> <S> <C>
COMMON STOCKS -- (continued)
SPAIN -- 3.88%
120,240 Banco Bilbao Vizcaya Argentaria S.A. ................. $ 1,818,487
88,500 +Telefonica S.A. ..................................... 1,755,161
-----------
3,573,648
-----------
SWEDEN -- 2.47%
149,035 +LM Ericsson AB, Class B.............................. 2,272,206
-----------
SWITZERLAND -- 2.99%
70 Lindt & Spruengli AG.................................. 376,580
187 Roche Holding AG...................................... 1,647,768
1,570 Zurich Allied AG...................................... 727,206
-----------
2,751,554
-----------
TAIWAN -- 1.04%
288,000 +Taiwan Semiconductor Manufacturing Co. .............. 956,383
-----------
THAILAND -- 1.16%
192,900 BEC World Public Co., Ltd. (Foreign).................. 980,304
80,500 Dhipaya Insurance Public Co., Ltd. ................... 88,892
-----------
1,069,196
-----------
UNITED KINGDOM -- 17.46%
229,100 Airtours plc.......................................... 730,049
38,855 +Baltimore Technologies plc........................... 396,439
363,587 Glaxo Wellcome plc.................................... 2,876,957
95,000 Granada Compass plc................................... 955,102
102,039 +Ivensys plc.......................................... 794,357
60,314 Pearson plc........................................... 1,675,810
270,900 Serco Group plc....................................... 2,403,478
12,800 Shell Transport & Trading Co., ADR.................... 626,400
345,831 Shell Transport & Trading Co., plc.................... 2,817,704
636,033 Vodafone AirTouch plc................................. 2,374,767
11,300 +Vodafone AirTouch plc ADR............................ 418,100
-----------
16,069,163
-----------
TOTAL COMMON STOCKS
(Cost $72,369,752)................................... 88,457,647
-----------
</TABLE>
<TABLE>
<CAPTION>
No. of
Warrants Value
---------- -----------
<C> <S> <C>
WARRANTS -- 0.02%
PHILIPPINES -- 0.02%
68,685 +Queenbee Restaurants-Jolibee Foods Corp., expiring
3/24/03 at $19.25
(Cost $23,839)...................................... $ 17,134
-----------
<CAPTION>
Principal
Amount
----------
<C> <S> <C>
DEMAND NOTES -- 3.94%
$1,800,000 Associates Corp. of North America Master Notes....... 1,800,000
1,830,000 General Electric Co. Promissory Notes................ 1,830,000
-----------
TOTAL DEMAND NOTES
(Cost $3,630,000)................................... 3,630,000
-----------
</TABLE>
<TABLE>
<S> <C> <C>
TOTAL INVESTMENTS
(Cost $76,023,591)........................................ 100.08% $92,104,781
OTHER ASSETS AND LIABILITIES (NET)......................... (0.08) (72,531)
------ -----------
NET ASSETS................................................. 100.00% $92,032,250
====== ===========
</TABLE>
--------
+ Non-income producing security
ADR--American Depositary Receipt
At September 30, 2000, sector diversification of the Fund's investment
portfolio was as follows:
<TABLE>
<CAPTION>
% of Market
Sector Diversification Net Assets Value
----------------------- ---------- -----------
<S> <C> <C>
Information Technology.................................. 20.31% $18,694,075
Industrials............................................. 14.10 12,972,290
Consumer Discretionary.................................. 13.76 12,663,830
Financials.............................................. 11.48 10,562,157
Technology.............................................. 10.71 9,857,182
Energy.................................................. 8.18 7,530,786
Consumer Staples........................................ 5.27 4,852,611
Health Care............................................. 4.92 4,524,726
Demand Notes............................................ 3.94 3,630,000
Telecommunication Services.............................. 3.53 3,247,411
Utilities............................................... 2.10 1,933,939
Capital Goods........................................... 1.35 1,239,336
Consumer Cyclicals...................................... 0.43 396,438
------ -----------
Total Investments...................................... 100.08% $92,104,781
Other Assets and Liabilities (Net)...................... (0.08) (72,531)
------ -----------
Net Assets............................................. 100.00% $92,032,250
====== ===========
</TABLE>
See Notes to Financial Statements
<PAGE>
Excelsior Institutional Trust
Statements of Assets and Liabilities
September 30, 2000 (Unaudited)
<TABLE>
<CAPTION>
Equity Value Optimum
Fund Equity Fund Growth Fund
------------ ----------- ------------
<S> <C> <C> <C>
Assets:
Investments, at cost -- see
accompanying
Schedule of Investments............. $120,840,636 $38,465,077 $ 57,066,812
============ =========== ============
Investments in securities, at value
(Note 1a)........................... $174,182,867 $46,689,839 $101,803,562
Cash................................. 755 -- 411
Dividends receivable ................ 79,448 18,310 18,071
Interest receivable.................. 16,847 2,224 18,187
Receivable for investment securities
sold................................ 6,048,439 -- --
Receivable for fund shares sold...... 47,119 -- 34,511
Deferred organization expenses (Note
1f)................................. -- 157 156
Other assets......................... 3,479 772 1,484
------------ ----------- ------------
Total assets......................... 180,378,954 46,711,302 101,876,382
Liabilities:
Payable for investments purchased.... 6,137,349 392,900 --
Investment advisory fees payable
(Note 2a)........................... 118,266 22,019 50,013
Payable for fund shares redeemed..... 23,876 -- 166,233
Administration fees payable (Note
2b)................................. 23,695 13,124 25,179
Trustees' fees and expenses payable
(Note 2f)........................... 747 158 312
Due to custodian bank................ -- 124,601 --
Accrued expenses and other
liabilities......................... 65,168 11,036 134,916
------------ ----------- ------------
Total liabilities.................... 6,369,101 563,838 376,653
------------ ----------- ------------
Net Assets............................ $174,009,853 $46,147,464 $101,499,729
============ =========== ============
Net Assets Consist of:
Par value............................ $ 105 $ 23 $ 36
Paid-in capital in excess of par
value............................... 77,250,421 22,273,491 38,618,886
Undistributed (distributions in
excess of) net investment income.... 125,152 49,073 (212,700)
Accumulated net realized gain on
investments......................... 43,291,944 15,600,212 18,356,757
Unrealized appreciation of
investments and foreign currency
translations........................ 53,342,231 8,224,665 44,736,750
------------ ----------- ------------
Net Assets............................ $174,009,853 $46,147,464 $101,499,729
============ =========== ============
Net Assets:
Institutional Shares................. $174,009,853 $45,896,401 $ 79,133,077
Shares............................... -- 251,063 22,366,652
Shares outstanding (Unlimited number
of $0.00001 par value shares
authorized for each Fund):
Institutional Shares................. 10,452,071 2,324,101 2,812,918
Shares............................... -- 12,709 802,870
Net Asset Value Per Share (net assets
/ shares outstanding):
Institutional Shares................. $ 16.65 $ 19.75 $ 28.13
============ =========== ============
Shares............................... -- $ 19.75 $ 27.86
============ =========== ============
</TABLE>
See Notes to Financial Statements
<PAGE>
Excelsior Institutional Trust
Statements of Assets and Liabilities -- (continued)
September 30, 2000 (Unaudited)
<TABLE>
<CAPTION>
Total Return International
Bond Equity
Income Fund Fund Fund
------------ ------------ -------------
<S> <C> <C> <C>
Assets:
Investments, at cost -- see
accompanying
Schedule of Investments.......... $101,724,343 $268,685,295 $76,023,591
============ ============ ===========
Investments in securities, at
value (Note 1a).................. $101,847,177 $268,199,200 $92,104,781
Foreign currency at value (Cost
$8,723).......................... -- -- 8,560
Cash.............................. -- 375,946 --
Dividends receivable.............. -- -- 76,884
Interest receivable............... 893,792 3,186,940 13,093
Receivable for investment
securities sold.................. 4,328,596 5,384,888 1,346,180
Receivable for fund shares sold... -- 282,740 10,951
Foreign withholding tax
receivable....................... -- -- 34,887
Other assets...................... 1,173 3,634 1,196
------------ ------------ -----------
Total assets...................... 107,070,738 277,433,348 93,596,532
Liabilities:
Payable for investments purchased. 5,037,475 3,047,730 --
Payable for fund shares redeemed.. -- 19,539 70,572
Dividends payable................. 560,929 1,465,469 --
Investment advisory fees payable
(Note 2a)........................ 35,294 67,506 61,455
Administration fees payable (Note
2b).............................. 14,108 38,595 42,310
Trustees' fees and expenses
payable (Note 2f)................ 157 -- 1,147
Due to custodian bank............. -- -- 1,350,884
Accrued expenses and other
liabilities...................... 20,567 41,303 37,914
------------ ------------ -----------
Total liabilities................. 5,668,530 4,680,142 1,564,282
------------ ------------ -----------
Net Assets......................... $101,402,208 $272,753,206 $92,032,250
============ ============ ===========
Net Assets Consist of:
Par value......................... $ 150 $ 384 $ 87
Paid-in capital in excess of par
value............................ 103,879,081 282,722,377 62,998,973
Undistributed (distributions in
excess of) net investment income. (39,449) 47,718 (987)
Accumulated net realized gain
(loss) on investments............ (2,560,408) (9,531,178) 12,957,030
Unrealized appreciation
(depreciation) of investments and
foreign currency translations.... 122,834 (486,095) 16,077,147
------------ ------------ -----------
Net Assets......................... $101,402,208 $272,753,206 $92,032,250
============ ============ ===========
Institutional Shares outstanding
(Unlimited number of $0.00001 par
value shares authorized for each
Fund)............................. 14,998,447 38,399,191 8,738,716
Net Asset Value Per Share (net
assets / shares outstanding)...... $ 6.76 $ 7.10 $ 10.53
============ ============ ===========
</TABLE>
See Notes to Financial Statements
<PAGE>
Excelsior Institutional Trust
Statements of Operations
For the Six Months Ended September 30, 2000 (Unaudited)
<TABLE>
<CAPTION>
Value Total Return International
Equity Equity Optimum Income Bond Equity
Fund Fund Growth Fund Fund Fund Fund
------------ ------------ ------------ ---------- ------------ -------------
<S> <C> <C> <C> <C> <C> <C>
Investment Income:
Dividend income........... $ 697,912 $ 1,168,645 $ 134,331 $ -- $ -- $ 613,156
Interest income........... 112,092 8,689 91,296 3,503,909 9,353,249 61,799
Less: Foreign taxes
withheld................. -- (348) -- -- -- (59,397)
------------ ------------ ------------ ---------- ----------- ------------
Total Income.............. 810,004 1,176,986 225,627 3,503,909 9,353,249 615,558
Expenses (Note 1g):
Investment advisory fees
(Note 2a)................ 631,574 162,418 333,819 326,546 895,059 527,720
Administration fees (Note
2b)...................... 147,691 37,982 78,062 76,361 209,306 105,544
Administrative servicing
fees (Note 2d)........... -- -- 4,584 -- -- --
Custodian fees............ 54,124 9,190 13,722 13,427 34,827 79,330
Legal and audit fees...... 22,482 3,550 9,992 8,735 7,235 2,929
Prospectus and shareholder
reports.................. 5,291 1,579 1,365 2,505 6,658 2,858
Registration and filing
fees..................... 4,858 15,343 8,222 10,273 26,621 13,079
Trustees' fees and
expenses (Note 2f)....... 4,348 1,132 2,134 2,061 4,758 3,309
Shareholder servicing
agent fees............... 3,286 7,304 11,502 4,109 5,640 8,684
Insurance expense......... 1,049 313 407 477 1,717 808
Amortization of
organization expenses
(Note 1f)................ -- 123 123 -- -- 607
Distribution fees --
Shares (Note 2e)........ -- 370 27,473 -- -- --
Miscellaneous............. 5,587 760 3,511 2,067 4,877 3,689
------------ ------------ ------------ ---------- ----------- ------------
Total Expenses............ 880,290 240,064 494,916 446,561 1,196,698 748,557
Less: Waiver of fees
(Note 2c)................ (200,683) (39,796) (56,589) (195,206) (508,290) (273,609)
------------ ------------ ------------ ---------- ----------- ------------
Net Expenses.............. 679,607 200,268 438,327 251,355 688,408 474,948
------------ ------------ ------------ ---------- ----------- ------------
Net Investment Income
(Loss).................... 130,397 976,718 (212,700) 3,252,554 8,664,841 140,610
------------ ------------ ------------ ---------- ----------- ------------
Realized and Unrealized
Gain (Loss) (Note 1):
Net realized gain (loss)
on investments........... 20,644,684 14,715,540 7,349,832 52,179 (1,636,444) 11,482,538
Net realized gain on
foreign currency
transactions............. -- -- -- -- -- 67,383
Change in unrealized
appreciation/depreciation
of investments and
foreign currency
translations during the
period................... (30,897,866) (18,737,807) (16,789,338) 1,492,105 5,400,451 (29,342,366)
------------ ------------ ------------ ---------- ----------- ------------
Net Realized and Unrealized
Gain (Loss)............... (10,253,182) (4,022,267) (9,439,506) 1,544,284 3,764,007 (17,792,445)
------------ ------------ ------------ ---------- ----------- ------------
Net Increase (Decrease) in
Net Assets Resulting from
Operations................ $(10,122,785) $ (3,045,549) $ (9,652,206) $4,796,838 $12,428,848 $(17,651,835)
============ ============ ============ ========== =========== ============
</TABLE>
See Notes to Financial Statements
<PAGE>
Excelsior Institutional Trust
Statements of Changes in Net Assets
<TABLE>
<CAPTION>
Equity Fund Value Equity Fund Optimum Growth Fund
--------------------------- -------------------------- ---------------------------
Six Months Six Months Six Months
Ended Ended Ended
September 30, Year Ended September 30, Year Ended September 30, Year Ended
2000 March 31, 2000 March 31, 2000 March 31,
(Unaudited) 2000 (Unaudited) 2000 (Unaudited) 2000
------------- ------------ ------------- ----------- ------------- ------------
<S> <C> <C> <C> <C> <C> <C>
Operations:
Net investment income
(loss)................... $ 130,397 $ 254,932 $ 976,718 $ 147,525 $ (212,700) $ (229,016)
Net realized gain on
investments.............. 20,644,684 28,551,531 14,715,540 1,293,913 7,349,832 22,425,776
Net realized loss on
foreign currency
transactions............. -- -- -- (2,680) -- --
Change in unrealized
appreciation/depreciation
of investments and
foreign currency
translations during the
period................... (30,897,866) 17,315,322 (18,737,807) 15,693,776 (16,789,338) 3,177,959
------------ ------------ ------------ ----------- ------------ ------------
Net increase (decrease)
in net assets resulting
from operations......... (10,122,785) 46,121,785 (3,045,549) 17,132,534 (9,652,206) 25,374,719
Distributions to
Shareholders:
From net investment income
Institutional Shares...... (5,245) (400,099) (921,785) (231,511) -- --
Shares.................... -- -- (6,548) (342) -- --
From net realized gains
Institutional Shares...... -- (14,504,061) -- (885,998) -- (11,457,427)
Shares.................... -- -- -- (1,336) -- (2,801,624)
------------ ------------ ------------ ----------- ------------ ------------
Total distributions to
shareholders............ (5,245) (14,904,160) (928,333) (1,119,187) -- (14,259,051)
------------ ------------ ------------ ----------- ------------ ------------
Transactions in Shares of
Beneficial Interest:
Net proceeds from shares
sold
Institutional Shares...... 6,515,447 42,522,262 791,297 5,023,385 7,056,696 18,585,551
Shares.................... -- -- 118,392 298,897 5,277,175 12,791,975
Reinvestment of dividends
Institutional Shares...... -- 18 211 40 -- 1,726,809
Shares.................... -- -- 6,540 1,355 -- 1,662,560
Cost of shares redeemed
Institutional Shares...... (33,978,612) (42,248,475) (4,937,558) (6,315,104) (6,255,929) (31,622,549)
Shares.................... -- -- (171,783) (138,817) (2,781,506) (6,863,369)
------------ ------------ ------------ ----------- ------------ ------------
Net increase (decrease)
in net assets from
beneficial interest
transactions............ (27,463,165) 273,805 (4,192,901) (1,130,244) 3,296,436 (3,719,023)
------------ ------------ ------------ ----------- ------------ ------------
Total Increase
(Decrease) in Net
Assets................. (37,591,195) 31,491,430 (8,166,783) 14,883,103 (6,355,770) 7,396,645
Net Assets:
Beginning of Period....... 211,601,048 180,109,618 54,314,247 39,431,144 107,855,499 100,458,854
------------ ------------ ------------ ----------- ------------ ------------
End of Period(a).......... $174,009,853 $211,601,048 $ 46,147,464 $54,314,247 $101,499,729 $107,855,499
============ ============ ============ =========== ============ ============
Capital Share Transactions:
Shares sold:
Institutional Shares...... 382,442 2,697,190 41,246 299,695 240,130 663,763
Shares.................... -- -- 5,882 15,650 180,769 454,057
Shares issued for dividend
reinvestment:
Institutional Shares...... -- 1 11 1 -- 61,937
Shares.................... -- -- 343 72 -- 60,107
Shares redeemed:
Institutional Shares...... (2,036,491) (2,633,992) (249,101) (331,276) (213,198) (1,135,686)
Shares.................... -- -- (9,282) (8,071) (96,506) (248,560)
------------ ------------ ------------ ----------- ------------ ------------
Net Increase (Decrease) in
Shares Outstanding........ (1,654,049) 63,199 (210,901) (23,929) 111,195 (144,382)
============ ============ ============ =========== ============ ============
--------
(a) Including undistributed
(distributions in
excess of) net
investment income...... $ 125,152 -- $ 49,073 $ 688 $ (212,700) --
</TABLE>
See Notes to Financial Statements
<PAGE>
Excelsior Institutional Trust
Statements of Changes in Net Assets -- (continued)
<TABLE>
<CAPTION>
Income Fund Total Return Bond Fund International Equity Fund
------------------------- -------------------------- --------------------------
Six Months Six Months Six Months
Ended Ended Ended
September Year Ended September Year Ended September 30, Year Ended
30, 2000 March 31, 30, 2000 March 31, 2000 March 31,
(Unaudited) 2000 (Unaudited) 2000 (Unaudited) 2000
------------ ----------- ------------ ------------ ------------- ------------
<S> <C> <C> <C> <C> <C> <C>
Operations:
Net investment income..... $ 3,252,554 $ 4,882,236 $ 8,664,841 $ 15,535,250 $ 140,610 $ 123,536
Net realized gain (loss)
on investments........... 52,179 (2,627,741) (1,636,444) (7,340,007) 11,482,538 13,177,380
Net realized gain (loss)
on foreign currency
transactions............. -- -- -- -- 67,383 (57,016)
Change in unrealized
appreciation/depreciation
of investments and
foreign currency
translations during the
period................... 1,492,105 (859,438) 5,400,451 (4,358,337) (29,342,366) 43,802,744
------------ ----------- ------------ ------------ ----------- ------------
Net increase (decrease)
in net assets resulting
from operations......... 4,796,838 1,395,057 12,428,848 3,836,906 (17,651,835) 57,046,644
Distributions to
Shareholders:
From net investment
income................... (3,252,554) (4,842,774) (8,664,841) (15,535,250) (154,716) (279,100)
In excess of net
investment income........ -- (39,449) -- -- -- --
From net realized gains... -- -- -- -- (10,584,986) (479,188)
In excess of net realized
gains.................... -- (101,297) -- -- -- --
------------ ----------- ------------ ------------ ----------- ------------
Total distributions to
shareholders............ (3,252,554) (4,983,520) (8,664,841) (15,535,250) (10,739,702) (758,288)
------------ ----------- ------------ ------------ ----------- ------------
Transactions in Shares of
Beneficial Interest:
Net proceeds from shares
sold..................... 1,726,501 40,035,715 27,571,385 100,164,255 13,342,499 46,730,406
Reinvestment of dividends. -- -- 268,364 329,580 6,079 --
Cost of shares redeemed... (1,077,713) (4,477,819) (23,521,364) (75,738,564) (16,984,749) (57,760,703)
------------ ----------- ------------ ------------ ----------- ------------
Net increase (decrease)
in net assets from
beneficial interest
transactions............ 648,788 35,557,896 4,318,385 24,755,271 (3,636,171) (11,030,297)
------------ ----------- ------------ ------------ ----------- ------------
Total Increase
(Decrease) in Net
Assets................. 2,193,072 31,969,433 8,082,392 13,056,927 (32,027,708) 45,258,059
Net Assets:
Beginning of Period....... 99,209,136 67,239,703 264,670,814 251,613,887 124,059,958 78,801,899
------------ ----------- ------------ ------------ ----------- ------------
End of Period(a).......... $101,402,208 $99,209,136 $272,753,206 $264,670,814 $92,032,250 $124,059,958
============ =========== ============ ============ =========== ============
Capital Share Transactions:
Institutional Shares sold
......................... 259,021 5,958,654 3,941,581 14,248,739 1,129,585 4,718,374
Institutional Shares
issued for dividend
reinvestment............. -- -- 38,247 46,936 513 --
Institutional Shares
redeemed................. (161,463) (670,179) (3,359,746) (10,898,429) (1,391,134) (5,047,602)
------------ ----------- ------------ ------------ ----------- ------------
Net Increase (Decrease) in
Shares Outstanding........ 97,558 5,288,475 620,082 3,397,246 (261,036) (329,228)
============ =========== ============ ============ =========== ============
--------
(a) Including undistributed
(distributions in
excess of) net
investment income...... $ (39,449) $ (39,449) $ 47,718 $ 47,718 $ (987) $ 13,119
</TABLE>
See Notes to Financial Statements
<PAGE>
Excelsior Institutional Trust
Financial Highlights
Selected data for a share outstanding throughout each period are as follows:
<TABLE>
<CAPTION>
Equity Fund
--------------------------------------------------------------------
Six Months Ten
Ended Year Year Year Months Year
September 30, Ended Ended Ended Ended Ended
2000 March 31, March 31, March 31, March 31, May 31,
(Unaudited) 2000 1999 1998 1997(1) 1996
------------- --------- --------- --------- --------- -------
<S> <C> <C> <C> <C> <C> <C>
Net Asset Value,
Beginning of
Period........... $17.48 $14.96 $12.69 $ 9.65 $8.93 $7.73
------ ------ ------ ------ ----- -----
Investment
Operations:
Net investment
income........... 0.01 0.02 0.04 0.05 0.05 0.11
Net realized and
unrealized gain
(loss) on
investments and
foreign currency
translations..... (0.84) 3.73 2.47 4.67 0.86 1.20
------ ------ ------ ------ ----- -----
Total From
Investment
Operations...... (0.83) 3.75 2.51 4.72 0.91 1.31
------ ------ ------ ------ ----- -----
Distributions:
From net
investment
income........... --(4) (0.03) (0.04) (0.06) (0.07) (0.11)
From net realized
gains............ -- (1.20) (0.20) (1.62) (0.12) --
------ ------ ------ ------ ----- -----
Total
Distributions... --(4) (1.23) (0.24) (1.68) (0.19) (0.11)
------ ------ ------ ------ ----- -----
Net Asset Value,
End of Period.... $16.65 $17.48 $14.96 $12.69 $9.65 $8.93
====== ====== ====== ====== ===== =====
Total Return..... (4.75)%(2) 25.75% 20.13% 51.58% 10.22%(2) 17.04%
====== ====== ====== ====== ===== =====
Ratios and
Supplemental
Data:
Ratios to Average
Net Assets
Net Expenses..... 0.70%(3) 0.70% 0.70% 0.70% 0.70%(3) 0.36%
Gross
Expenses(5)...... 0.91%(3) 0.90% 0.90% 0.90% 0.92%(3) 1.49%
Net Investment
Income........... 0.13%(3) 0.13% 0.28% 0.46% 0.70%(3) 1.32%
Portfolio
Turnover......... 17%(3) 27% 37% 26% 32%(3) 113%
Net Assets at end
of Period (000's
omitted)......... $174,010 $211,601 $180,110 $138,328 $118,562 $23,495
<CAPTION>
Value Equity Fund
-------------------------------------------------------------
Six Months
Ended Year Year Year June 1,
September 30, Ended Ended Ended 1996* to
2000 March 31, March 31, March 31, March 31,
(Unaudited) 2000 1999 1998 1997
--------------- ---------- ---------- ---------- ------------
<S> <C> <C> <C> <C> <C>
Net Asset Value,
Beginning of
Period........... $21.32 $15.33 $16.12 $11.33 $10.00
--------------- ---------- ---------- ---------- ------------
Investment
Operations:
Net investment
income........... 0.37 0.06 0.13 0.11 0.08
Net realized and
unrealized gain
(loss) on
investments and
foreign currency
translations..... (1.57) 6.34 0.52 5.59 1.31
--------------- ---------- ---------- ---------- ------------
Total From
Investment
Operations...... (1.20) 6.40 0.65 5.70 1.39
--------------- ---------- ---------- ---------- ------------
Distributions:
From net
investment
income........... (0.37) (0.09) (0.12) (0.11) (0.06)
From net realized
gains............ -- (0.32) (1.32) (0.80) --
--------------- ---------- ---------- ---------- ------------
Total
Distributions... (0.37) (0.41) (1.44) (0.91) (0.06)
--------------- ---------- ---------- ---------- ------------
Net Asset Value,
End of Period.... $19.75 $21.32 $15.33 $16.12 $11.33
=============== ========== ========== ========== ============
Total Return..... (5.43)%(2) 41.92% 4.80% 51.67% 13.91%(2)
=============== ========== ========== ========== ============
Ratios and
Supplemental
Data:
Ratios to Average
Net Assets
Net Expenses..... 0.80%(3) 0.80% 0.70% 0.70% 0.70%(3)
Gross
Expenses(5)...... 0.96%(3) 0.95% 0.97% 1.00% 1.12%(3)
Net Investment
Income........... 3.91%(3) 0.31% 0.87% 0.81% 0.94%(3)
Portfolio
Turnover......... 117%(3) 45% 55% 51% 64%(3)
Net Assets at end
of Period (000's
omitted)......... $45,896 $53,978 $39,307 $34,766 $23,687
</TABLE>
-----
* Commencement of Operations
(1) The Fund changed its fiscal year end to March 31.
(2) Not annualized
(3) Annualized
(4) Amount represents less than $0.01 per share.
(5) Expense ratios before waiver of fees and reimbursement of expenses, if
any, by the adviser and administrators.
See Notes to Financial Statements
<PAGE>
Excelsior Institutional Trust
Financial Highlights -- (continued)
Selected data for a share outstanding throughout each period are as follows:
<TABLE>
<CAPTION>
Optimum Growth Fund
----------------------------------------------------------
Six Months
Ended Year Year Year June 1,
September 30, Ended Ended Ended 1996* to
2000 March 31, March 31, March 31, March 31,
(Unaudited) 2000 1999 1998 1997
------------- --------- --------- --------- ---------
<S> <C> <C> <C> <C> <C>
Net Asset Value,
Beginning of
Period........... $30.83 $27.55 $16.33 $10.19 $10.00
------ ------ ------ ------ ------
Investment
Operations:
Net investment
income (loss).... (0.05) (0.05) -- 0.03 0.05
Net realized and
unrealized gain
(loss) on
investments...... (2.65) 7.21 11.22 6.15 0.17
------ ------ ------ ------ ------
Total From
Investment
Operations...... (2.70) 7.16 11.22 6.18 0.22
------ ------ ------ ------ ------
Distributions:
From net
investment
income........... -- -- -- (0.04) (0.03)
From net realized
gains............ -- (3.88) -- -- --
In excess of net
realized gains... -- -- -- -- --
------ ------ ------ ------ ------
Total
Distributions... -- (3.88) -- (0.04) (0.03)
------ ------ ------ ------ ------
Net Asset Value,
End of Period.... $28.13 $30.83 $27.55 $16.33 $10.19
====== ====== ====== ====== ======
Total Return..... (8.76)%(2) 27.66% 68.74% 60.85% 2.23%(2)
====== ====== ====== ====== ======
Ratios and
Supplemental
Data:
Ratios to Average
Net Assets
Net Expenses..... 0.80%(3) 0.80% 0.71% 0.70% 0.70%(3)
Gross
Expenses(4)...... 0.91%(3) 0.93% 0.93% 0.97% 1.11%(3)
Net Investment
Income........... (0.36)%(3) (0.18)% 0.00% 0.23% 0.66%(3)
Portfolio
Turnover......... 49%(3) 44% 22% 19% 20%(3)
Net Assets at end
of Period
(000's omitted).. $79,133 $85,889 $88,045 $51,441 $27,183
<CAPTION>
Income Fund
----------------------------------------------------------------
Six Months Ten
Ended Year Year Year Months Year
September 30, Ended Ended Ended Ended Ended
2000 March 31, March 31, March 31, March 31, May 31,
(Unaudited) 2000 1999 1998 1997(1) 1996
------------- --------- --------- --------- ----------- --------
<S> <C> <C> <C> <C> <C> <C>
Net Asset Value,
Beginning of
Period........... $6.66 $7.00 $7.23 $6.90 $6.99 $7.33
------------- --------- --------- --------- ----------- --------
Investment
Operations:
Net investment
income (loss).... 0.22 0.41 0.40 0.44 0.38 0.51
Net realized and
unrealized gain
(loss) on
investments...... 0.10 (0.33) 0.03 0.35 (0.01) (0.27)
------------- --------- --------- --------- ----------- --------
Total From
Investment
Operations...... 0.32 0.08 0.43 0.79 0.37 0.24
------------- --------- --------- --------- ----------- --------
Distributions:
From net
investment
income........... (0.22) (0.41) (0.41) (0.44) (0.38) (0.51)
From net realized
gains............ -- -- (0.25) (0.02) (0.08) (0.07)
In excess of net
realized gains... -- (0.01) -- -- -- --
------------- --------- --------- --------- ----------- --------
Total
Distributions... (0.22) (0.42) (0.66) (0.46) (0.46) (0.58)
------------- --------- --------- --------- ----------- --------
Net Asset Value,
End of Period.... $6.76 $6.66 $7.00 $7.23 $6.90 $6.99
============= ========= ========= ========= =========== ========
Total Return..... 4.78%(2) 1.16% 5.94% 11.78% 5.39%(2) 3.18%
============= ========= ========= ========= =========== ========
Ratios and
Supplemental
Data:
Ratios to Average
Net Assets
Net Expenses..... 0.50%(3) 0.50% 0.50% 0.50% 0.50%(3) 0.26%
Gross
Expenses(4)...... 0.89%(3) 0.90% 0.91% 0.91% 0.96%(3) 1.35%
Net Investment
Income........... 6.47%(3) 6.08% 5.57% 6.14% 6.50%(3) 6.99%
Portfolio
Turnover......... 83%(3) 125% 196% 190% 107%(3) 67%
Net Assets at end
of Period
(000's omitted).. $101,402 $99,209 $67,240 $61,374 $51,082 $24,001
</TABLE>
-----
* Commencement of Operations
(1) The Fund changed its fiscal year end to March 31.
(2) Not annualized
(3) Annualized
(4) Expense ratios before waiver of fees and reimbursement of expenses, if
any, by the adviser and administrators.
See Notes to Financial Statements
<PAGE>
Excelsior Institutional Trust
Financial Highlights -- (continued)
Selected data for a share outstanding throughout each period are as follows:
<TABLE>
<CAPTION>
Total Return Bond Fund
--------------------------------------------------------------------
Six Months Ten
Ended Year Year Year Months Year
September 30, Ended Ended Ended Ended Ended
2000 March 31, March 31, March 31, March 31, May 31,
(Unaudited) 2000 1999 1998 1997(1) 1996
------------- --------- --------- --------- --------- -------
<S> <C> <C> <C> <C> <C> <C>
Net Asset Value,
Beginning of
Period........... $ 7.01 $ 7.32 $ 7.51 $ 7.16 $ 7.18 $ 7.47
------ ------ ------ ------ ------ ------
Investment
Operations:
Net investment
income .......... 0.22 0.41 0.42 0.44 0.37 0.48
Net realized and
unrealized gain
(loss) on
investments...... 0.09 (0.31) 0.03 0.41 0.01 (0.17)
------ ------ ------ ------ ------ ------
Total From
Investment
Operations...... 0.31 0.10 0.45 0.85 0.38 0.31
------ ------ ------ ------ ------ ------
Distributions:
From net
investment
income........... (0.22) (0.41) (0.42) (0.44) (0.37) (0.48)
In excess of net
investment
income........... -- -- -- -- -- --
From net realized
gains............ -- -- (0.20) (0.06) (0.03) (0.12)
In excess of net
realized gains... -- -- (0.02) -- -- --
------ ------ ------ ------ ------ ------
Total
Distributions... (0.22) (0.41) (0.64) (0.50) (0.40) (0.60)
------ ------ ------ ------ ------ ------
Net Asset Value,
End of Period.... $ 7.10 $ 7.01 $ 7.32 $ 7.51 $ 7.16 $ 7.18
====== ====== ====== ====== ====== ======
Total Return..... 4.46%(2) 1.47% 6.07% 12.21% 5.29%(2) 4.20%
====== ====== ====== ====== ====== ======
Ratios and
Supplemental
Data:
Ratios to Average
Net Assets
Net Expenses..... 0.50%(3) 0.50% 0.50% 0.50% 0.50%(3) 0.32%
Gross
Expenses(4)...... 0.87%(3) 0.88% 0.89% 0.90% 0.92%(3) 1.33%
Net Investment
Income........... 6.30%(3) 5.85% 5.53% 5.95% 6.08%(3) 6.47%
Portfolio
Turnover......... 98%(3) 115% 234% 196% 200%(3) 127%
Net Assets at end
of Period
(000's omitted).. $272,753 $264,671 $251,614 $167,711 $138,402 $65,017
<CAPTION>
International Equity Fund
-----------------------------------------------------------------------
Six Months Ten
Ended Year Year Year Months Year
September 30, Ended Ended Ended Ended Ended
2000 March 31, March 31, March 31, March 31, May 31,
(Unaudited) 2000 1999 1998 1997(1) 1996
--------------- ---------- ---------- ---------- ------------ ---------
<S> <C> <C> <C> <C> <C> <C>
Net Asset Value,
Beginning of
Period........... $13.78 $ 8.45 $ 9.67 $ 9.03 $ 8.99 $ 7.88
--------------- ---------- ---------- ---------- ------------ ---------
Investment
Operations:
Net investment
income .......... 0.02 0.01 0.16 0.09 0.01 0.09
Net realized and
unrealized gain
(loss) on
investments...... (1.98) 5.39 (0.79) 0.79 0.21 1.20
--------------- ---------- ---------- ---------- ------------ ---------
Total From
Investment
Operations...... (1.96) 5.40 (0.63) 0.88 0.22 1.29
--------------- ---------- ---------- ---------- ------------ ---------
Distributions:
From net
investment
income........... (0.02) (0.03) (0.16) (0.07) (0.06) (0.12)
In excess of net
investment
income........... -- -- -- (0.02) (0.03) --
From net realized
gains............ (1.27) (0.04) (0.30) (0.15) (0.09) (0.06)
In excess of net
realized gains... -- -- (0.13) -- -- --
--------------- ---------- ---------- ---------- ------------ ---------
Total
Distributions... (1.29) (0.07) (0.59) (0.24) (0.18) (0.18)
--------------- ---------- ---------- ---------- ------------ ---------
Net Asset Value,
End of Period.... $10.53 $13.78 $ 8.45 $ 9.67 $ 9.03 $ 8.99
=============== ========== ========== ========== ============ =========
Total Return..... (15.29)%(2) 64.29% (6.60)% 9.90% 2.41%(2) 16.58%
=============== ========== ========== ========== ============ =========
Ratios and
Supplemental
Data:
Ratios to Average
Net Assets
Net Expenses..... 0.90%(3) 0.90% 0.90% 0.90% 0.90%(3) 0.60%
Gross
Expenses(4)...... 1.42%(3) 1.45% 1.53% 1.43% 1.49%(3) 2.05%
Net Investment
Income........... 0.27%(3) 0.11% 1.18% 1.05% 0.45%(3) 1.71%
Portfolio
Turnover......... 36%(3) 43% 107% 52% 45%(3) 19%
Net Assets at end
of Period
(000's omitted).. $92,032 $124,060 $78,802 $40,436 $38,470 $24,522
</TABLE>
-----
(1) The Fund changed its fiscal year end to March 31.
(2) Not annualized
(3) Annualized
(4) Expense ratios before waiver of fees and reimbursement of expenses, if
any, by the adviser and administrators.
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 seven funds (each a "Fund",
collectively, the "Funds"), each having its own investment objectives and
policies: Excelsior Equity Fund ("Equity Fund"), Excelsior Value Equity Fund
("Value Equity Fund"), Excelsior Optimum Growth Fund ("Optimum Growth Fund"),
Excelsior Income Fund ("Income Fund"), Excelsior Total Return Bond Fund
("Total Return Bond Fund"), Excelsior International Equity Fund
("International Equity Fund") and Excelsior High Yield Fund ("High Yield
Fund"). With regard to Value Equity Fund, Optimum Growth Fund, International
Equity Fund and High Yield Fund, the Trust offers two classes of shares:
Institutional Shares and Shares. At September 30, 2000, International Equity
Fund has not issued Shares and the High Yield Fund had not yet commenced
operations. 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.
<PAGE>
Excelsior Institutional Trust
Notes to Financial Statements (Unaudited) -- (Continued)
Securities for which market quotations are not readily available are valued
at fair value pursuant to guidelines adopted by the Funds' Trustees. Short-
term debt instruments with remaining maturities of 60 days or less are valued
at amortized cost, which approximates market value.
b) Forward foreign currency exchange contracts -- The International Equity
Fund's participation in forward 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, Value Equity Fund and Optimum Growth 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.
<PAGE>
Excelsior Institutional Trust
Notes to Financial Statements (Unaudited) -- (Continued)
If the value of the underlying security falls below the value of the
repurchase price, the Funds will require the seller to deposit additional
collateral by the next business day. Default or bankruptcy of the seller may,
however, expose the applicable Fund to possible delay in the connection with
the disposition of the underlying securities or loss to the extent that
proceeds from the sale of the underlying securities were less than the
repurchase price under the agreement.
f) Deferred Organization Expense -- Expenses incurred by each Fund in
connection with its organization are being amortized on a straight-line basis
over a five year period.
g) Expense Allocation -- Expenses incurred by the Trust with respect to any
two or more Funds in the Trust are allocated in proportion to the average net
assets of each Fund, except where allocations of direct expenses to each Fund
can otherwise be fairly made. Expenses directly attributable to a Fund are
charged to that Fund and expenses directly attributable to a particular class
of shares in a Fund are charged to such class.
h) Federal Income Taxes -- It is the policy of each Fund to continue to
qualify as a regulated investment company, if such qualification is in the best
interest of the shareholders, by complying with the requirements of the
Internal Revenue Code of 1986, as amended, applicable to regulated investment
companies, and by distributing substantially all of its taxable earnings to its
shareholders.
At March 31, 2000, the following Portfolios had approximate capital loss
carryforwards for Federal tax purposes available to offset future net capital
gains through the indicated expirations dates:
<TABLE>
<CAPTION>
Expiration Date
March 31,
2008
---------------
<S> <C>
Income Fund..................................................... $1,377,000
Total Return Bond Fund.......................................... 4,838,000
</TABLE>
At September 30, 2000, 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 International
Equity Value Optimum Return Bond Equity
Fund Equity Fund Growth Fund Income Fund Fund Fund
------------ ----------- ----------- ------------ ------------ -------------
<S> <C> <C> <C> <C> <C> <C>
Aggregate Cost.......... $120,840,636 $38,465,077 $57,066,812 $101,724,343 $268,685,295 $76,023,591
============ =========== =========== ============ ============ ===========
Gross unrealized
appreciation........... $ 60,057,885 $10,058,046 $46,685,165 $ 1,113,947 $ 1,798,412 $24,785,128
------------ ----------- ----------- ------------ ------------ -----------
Gross unrealized
depreciation........... (6,715,654) (1,833,284) (1,948,415) (991,113) (2,284,507) (8,703,938)
------------ ----------- ----------- ------------ ------------ -----------
Net unrealized
appreciation
(depreciation)......... $ 53,342,231 $ 8,224,762 $44,736,750 $ 122,834 $ (486,095) $16,081,190
============ =========== =========== ============ ============ ===========
</TABLE>
i) With regard to the International Equity Fund, a redemption fee of 2% of
the value of the shares redeemed or exchanged will be imposed on shares
redeemed or exchanged 30 days or less after their date of purchase. The
redemption fee is intended to limit short-term trading in the Fund or, to the
extent that short-term trading persists, to impose the costs of that type of
activity on the shareholders who engage in it. The redemption fee will be paid
to the Fund. As of September 30, 2000, the International Equity Fund incurred
no redemption fees.
<PAGE>
Excelsior Institutional Trust
Notes to Financial Statements (Unaudited) -- (Continued)
2. Investment Advisory Fee, Administration Fee, Distribution Expenses and
Related Party Transactions:
a) United States Trust Company of New York ("U.S. Trust NY") and U.S. Trust
Company (collectively with U.S. Trust NY, "U.S. Trust") serve as the
investment adviser to the Equity Fund, Value Equity Fund, Optimum Growth Fund,
Income Fund, Total Return Bond Fund, and International 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. U.S. Trust Corporation is a
wholly-owned subsidiary of the The Charles Schwab Corporation ("Schwab").
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 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,
2000, administration fees charged by U.S. Trust Company were as follows:
<TABLE>
<S> <C>
Equity Fund............................................................ $48,002
Value Equity Fund...................................................... $12,350
Optimum Growth Fund.................................................... $25,367
Income Fund............................................................ $24,843
Total Return Bond Fund................................................. $68,096
International Equity Fund.............................................. $26,124
</TABLE>
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 expenses. U.S. Trust has contractually agreed to waive investment
advisory fees and to reimburse other ordinary operating expenses through March
31, 2001, to the extent necessary to keep total operating expenses from
exceeding the following annual percentage of each Fund's average daily net
assets:
<PAGE>
Excelsior Institutional Trust
Notes to Financial Statements (Unaudited) -- (Continued)
<TABLE>
<S> <C>
Equity Fund............................................................... 0.70%
Value Equity Fund -- Institutional Shares................................. 0.80%
Optimum Growth Fund -- Institutional Shares............................... 0.80%
Income Fund............................................................... 0.50%
Total Return Bond Fund.................................................... 0.50%
International Equity Fund -- Institutional Shares......................... 0.90%
Value Equity Fund -- Shares............................................... 1.05%
Optimum Growth Fund -- Shares............................................. 1.05%
</TABLE>
For the six months ended September 30, 2000, U.S. Trust waived investment
advisory fees in the following amounts:
<TABLE>
<S> <C>
Equity Fund........................................................... $200,683
Value Equity Fund..................................................... $ 39,796
Optimum Growth Fund................................................... $ 52,005
Income Fund........................................................... $195,206
Total Return Bond Fund................................................ $508,290
International Equity Fund............................................. $273,609
</TABLE>
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.
Through July 31, 2000, U.S. Trust and the Administrators voluntarily agreed
to waive investment advisory and administration fees payable by each Fund in
an amount equal to the administrative service fees expense (including fees
paid to affiliates of U.S. Trust) by such Fund. Effective August 1, 2000, U.S.
Trust has voluntarily agreed to continue waiving investment advisory and
administration fees payable by each Fund in an amount equal to the
administrative services fees expense paid to subsidiaries of U.S. Trust
Corporation. For the six months ended September 30, 2000, 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:
<TABLE>
<CAPTION>
U.S. Trust Administrators
---------- --------------
<S> <C> <C>
Optimum Growth Fund................................... $3,894 $690
</TABLE>
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 Value Equity Fund, Optimum Growth Fund and International 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.
<PAGE>
Excelsior Institutional Trust
Notes to Financial Statements (Unaudited) -- (Continued)
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.
The Chairman of the Board receives an additional annual fee of $5,000. Each
Trustee serving on the Nominating Committee of the Trust also receives an
annual fee of $1,000 for services in connection with this committee.
3. Purchases and Sales of Investment Securities:
a) Investment transactions (excluding short-term investments) for the six
months ended September 30, 2000 were as follows:
<TABLE>
<CAPTION>
Cost of Proceeds
Purchases From Sales
------------ ------------
<S> <C> <C>
Equity Fund.......................................... $ 16,508,327 $ 43,926,552
Value Equity Fund.................................... $ 28,999,810 $ 33,554,079
Optimum Growth Fund.................................. $ 25,279,492 $ 24,514,989
Income Fund.......................................... $ 42,883,043 $ 40,564,527
Total Return Bond Fund............................... $134,987,643 $151,082,907
International Equity Fund............................ $ 18,485,895 $ 35,401,304
</TABLE>
b) Investment transactions in U.S. Government and Agency Obligations
(excluding short-term investments) for the six months ended September 30, 2000
were as follows:
<TABLE>
<CAPTION>
Cost of Proceeds
Purchases From Sales
----------- -----------
<S> <C> <C>
Income Fund............................................. $18,448,890 $21,626,350
Total Return Bond Fund.................................. $92,905,070 $70,212,551
</TABLE>
4. Line of Credit:
The Portfolios and other affiliated funds participate in a $250 million
unsecured line of credit provided by a syndication of banks under a line of
credit agreement. Borrowings may be made to temporarily finance the repurchase
of Portfolio shares. Interest is charged to each Portfolio, based on its
borrowings, at a rate equal to the Federal Funds Rate plus 2% per year. In
addition, a commitment fee, based on the average daily unused portion of the
line of credit, is allocated among the participating Portfolios at the end of
each quarter. For the six months ended September 30, 2000, the Portfolios had
no borrowings under the agreement.
