<PAGE>
MARTIN CURRIE BUSINESS TRUST
OPPORTUNISTIC EAFE FUND
SEMI-ANNUAL REPORT
OCTOBER 31, 2000
(Unaudited)
<PAGE>
MCBT OPPORTUNISTIC EAFE FUND
--------------------------------------------------------------------------------
PROFILE AT OCTOBER 31, 2000 (Unaudited)
<TABLE>
<S> <C> <C>
OBJECTIVE Long-term capital appreciation through active management of a diversified portfolio of
international equities outside the USA and Canada.
LAUNCH DATE July 1, 1994
FUND SIZE $230.8m
PERFORMANCE Total return from May 1, 2000 through October 31, 2000
SINCE LAUNCH
- MCBT - Opportunistic EAFE (excluding all transaction fees) -10.7%
- MCBT - Opportunistic EAFE (including all transaction fees) -11.4%
- The Morgan Stanley Capital International EAFE Index -8.9%
Annualized total return from July 1, 1994 through October 31, 2000
- MCBT - Opportunistic EAFE (excluding all transaction fees) +8.9%
- MCBT - Opportunistic EAFE (including all transaction fees) +8.8%
- The Morgan Stanley Capital International EAFE Index +9.0%
</TABLE>
2
<PAGE>
MCBT OPPORTUNISTIC EAFE FUND
--------------------------------------------------------------------------------
PROFILE AT OCTOBER 31, 2000 (Unaudited)
<TABLE>
<S> <C>
PORTFOLIO Over the six months ended October 31, 2000, the MSCI EAFE index fell by 8.9%. By comparison our
COMMENTS fund fell by 10.7%.
The major trends in our asset allocation have been a switch from Japan and emerging markets into
Europe. Recently we have rebuilt our Japanese weighting, with funds taken from Asia. Among emerging
markets, Latin America has been our preferred area. But on the prospect of a default in Argentina,
we have rebalanced our position to favour Asia.
At a sector level, we now favour a more balanced spread of exposure. From our position in 1999 where
the focus was heavily in the technology, media and telecommunication sectors, we have switched our
emphasis to highlight financial, healthcare and energy stocks. This reflected our concern that the
summer would be volatile, and that the valuations of the technology sector were untenable.
In anticipation of a recovery in the fourth quarter, we have added several technology stocks to the
portfolio recently. But market volatility has continued beyond our expectations, and this move has
not yet been successful.
OUTLOOK
The uncertain political environment in the US, the tense situation in the Middle East and slowing
global economic growth, leave markets unstable. Slowing earnings have taken a heavy toll on all
sectors. Few areas offer protection. The monetary outlook is for some easing in the restrictive
policies of 2000. We expect to see a change before the end of the first quarter of 2001. This should
provide a floor to markets and generate a rally led by growth stocks.
Against this background, we will retain our current asset and sector exposure. We have identified
reasonable earnings momentum in stocks that were devalued during the indiscriminate fall in markets
in the summer and early autumn.
</TABLE>
<TABLE>
<S> <C>
INVESTMENT James Fairweather spent three years with Montague Loebl Stanley & Co as an institutional
MANAGER PROFILE sales and economics assistant. He moved into eurobond sales for 18 months with Kleinwort Benson
before joining Martin Currie in 1984. James has worked in the Far East, North American and
continental European investment teams. He was appointed deputy chief investment officer in 1994
and chief investment officer in 1997. James is responsible for managing the investment team,
developing strategy and overall investment performance. He chairs the international strategy
group and is a main board director.
</TABLE>
3
<PAGE>
MCBT OPPORTUNISTIC EAFE FUND
--------------------------------------------------------------------------------
PROFILE AT OCTOBER 31, 2000 (Unaudited)
EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC
ASSET ALLOCATION
(% of net assets)
/ / Europe - 58%
/ / Japan - 30%
/ / Pacific Basin - 4%
/ / Latin America - 4%
/ / ST Investment - 2%
/ / Other Areas - 1%
/ / Other Net Assets - 1%
TOP TEN HOLDINGS
BY REGION/COUNTRY
<TABLE>
<CAPTION> % OF NET ASSETS
<S> <C> <C>
EUROPE
Vodafone Group (United Kingdom) 4.8
VNU (Netherlands) 2.5
Ericsson, Class B (Sweden) 2.5
Total Fina Elf (France) 2.4
Glaxo Wellcome (United Kingdom) 2.3
Vivendi (France) 2.1
Aventis (France) 2.0
AXA (France) 2.0
Telefonica (Spain) 1.9
Allianz (Germany) 1.9
</TABLE>
4
<PAGE>
MCBT OPPORTUNISTIC EAFE FUND
--------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS
OCTOBER 31, 2000 (Unaudited)
<TABLE>
<CAPTION>
SHARES VALUE
<S> <C> <C>
COMMON AND PREFERRED STOCKS - 97.4%
AFRICA - 0.5%
SOUTH AFRICA - 0.5%
ANGLO AMERICAN PLATINUM 12,700 $ 495,457
BARLOWORLD # 85,000 444,014
SOFTLINE* 490,000 203,473
-----------------
TOTAL SOUTH AFRICA - (Cost $1,854,559) 1,142,944
-----------------
TOTAL AFRICA - (Cost $1,854,559) 1,142,944
-----------------
EUROPE - 58.2%
FINLAND - 2.1%
NOKIA 104,770 4,311,142
TIETOENATOR 24,408 469,141
-----------------
TOTAL FINLAND - (Cost $2,819,942) 4,780,283
-----------------
FRANCE - 14.6%
ALCATEL 58,369 3,561,348
AVENTIS 64,288 4,637,160
AXA 34,796 4,606,352
CAP GEMINI 7,605 1,213,278
CARREFOUR 33,275 2,233,561
SODEXHO ALLIANCE 8,840 1,384,050
SUEZ LYONNAISE DES EAUX 27,591 4,209,789
TOTAL FINA ELF 38,509 5,509,637
VIVENDI 65,903 4,736,874
VIVENDI ENVIRONNEMENT* 40,673 1,518,665
-----------------
TOTAL FRANCE - (Cost $29,492,056) 33,610,714
-----------------
GERMANY - 1.9%
ALLIANZ 12,836 4,352,152
-----------------
TOTAL GERMANY - (Cost $4,650,747) 4,352,152
-----------------
GREECE - 0.3%
NATIONAL BANK OF GREECE 19,000 722,186
-----------------
TOTAL GREECE - (Cost $730,862) 722,186
-----------------
IRELAND - 0.9%
ELAN, ADR* 42,600 2,212,538
-----------------
TOTAL IRELAND - (Cost $2,226,598) 2,212,538
-----------------
ITALY - 3.6%
ALLEANZA ASSICURAZIONI 123,949 1,644,013
AUTOSTRADE # 218,815 1,271,952
SAN PAOLO IMI 126,509 2,050,492
TELECOM ITALIA MOBILE 172,931 1,470,428
TELECOM ITALIA 161,766 1,873,800
-----------------
TOTAL ITALY - (Cost $7,326,610) 8,310,685
-----------------
</TABLE>
See notes to financial statements.
5
<PAGE>
MCBT OPPORTUNISTIC EAFE FUND
--------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS
OCTOBER 31, 2000 (Unaudited)
<TABLE>
<CAPTION> Shares Value
------ -----
<S> <C> <C>
NETHERLANDS - 4.8%
ELSEVIER 161,881 $ 2,067,453
ING GROEP 25,055 1,720,495
KONINKLIJKE (ROYAL) PHILIPS ELECTRONICS 33,979 1,335,330
VNU 124,672 5,871,717
-----------------
TOTAL NETHERLANDS - (Cost $9,632,654) 10,994,995
-----------------
POLAND - 0.3%
POLSKI KONCERN NAFTOWY ORLEN, GDR, 144A 100,000 775,000
-----------------
TOTAL POLAND - (Cost $932,000) 775,000
-----------------
SPAIN - 4.9%
AMADEUS GLOBAL TRAVEL DISTRIBUTION, SERIES A* 159,041 1,299,687
BANCO BILBAO VIZCAYA ARGENTARIA 203,489 2,711,089
BANCO SANTANDER CENTRAL HISPANO 291,781 2,827,654
TELEFONICA* 232,951 4,441,921
-----------------
TOTAL SPAIN - (Cost $11,407,736) 11,280,351
-----------------
SWEDEN - 3.2%
FORENINGSSPARBANKEN, SERIES A 119,000 1,708,966
ERICSSON, CLASS B 433,000 5,763,338
-----------------
TOTAL SWEDEN - (Cost $6,418,729) 7,472,304
-----------------
SWITZERLAND - 1.2%
UBS 20,200 2,798,064
-----------------
TOTAL SWITZERLAND - (Cost $2,783,590) 2,798,064
-----------------
UNITED KINGDOM - 20.4%
3I GROUP 168,000 3,814,836
BP AMOCO 163,000 1,382,370
CABLE & WIRELESS 130,050 1,839,785
ENERGIS* 200,000 1,710,669
GLAXO WELLCOME 183,080 5,270,293
HSBC HOLDINGS 255,000 3,633,322
KINGFISHER 70,000 418,454
MARCONI 191,050 2,411,673
PRUDENTIAL 200,000 2,690,060
SAGE GROUP 366,000 2,671,169
SEMA GROUP 169,000 2,133,331
SHELL TRANSPORT & TRADING 311,180 2,503,603
SMITHKLINE BEECHAM 231,000 2,983,007
SMITHS INDUSTRIES 117,343 1,256,509
VODAFONE GROUP 2,635,332 10,964,554
WPP GROUP 105,000 1,409,234
-----------------
TOTAL UNITED KINGDOM - (Cost $42,797,596) 47,092,869
-----------------
TOTAL EUROPE - (Cost $121,219,120) 134,402,141
-----------------
</TABLE>
See notes to financial statements.
6
<PAGE>
MCBT OPPORTUNISTIC EAFE FUND
--------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS
OCTOBER 31, 2000 (Unaudited)
<TABLE>
<CAPTION> Shares Value
------ -----
<S> <C> <C>
JAPAN - 29.9%
ASAHI CHEMICAL 346,000 $ 2,143,573
BENESSE 16,200 890,803
BRIDGESTONE 90,000 892,453
CANON 89,000 3,531,779
DAIWA HOUSE INDUSTRY 162,000 1,017,000
FAMILYMART 33,000 874,032
FUJI PHOTO FILM 35,000 1,299,088
FUJITSU 111,000 1,977,583
HITACHI 261,000 2,798,607
HONDA MOTOR 55,000 1,900,289
ITO - YOKADO 44,000 1,987,994
KAO 91,000 2,727,123
KYOCERA 7,900 1,028,090
MABUCHI MOTOR 15,400 1,645,640
MARUI 92,000 1,357,467
MATSUSHITA COMMUNICATION INDUSTRIAL 15,300 2,005,132
MITSUBISHI HEAVY INDUSTRIES 340,000 1,321,175
MITSUI MARINE AND FIRE INSURANCE 128,000 649,883
MKC-STAT 64,000 1,055,767
NAMCO 47,000 1,214,682
NOMURA SECURITIES 95,000 2,015,534
NTT 248 2,256,922
NTT MOBILE COMMUNICATIONS 162 3,993,768
ROHM 12,900 3,252,339
SANWA INTERNATIONAL FINANCE, PREFERRED 156,000,000 1,665,582
SECOM 42,000 2,994,639
SHIN - ETSU CHEMICAL 62,250 2,555,836
SONY 31,700 2,533,327
SUMITOMO BAKELITE 185,000 2,070,155
SUMITOMO ELECTRIC INDUSTRIES 180,000 3,324,016
TAISHO PHARMACEUTICAL 62,000 1,784,173
TAKEFUJI 19,500 1,930,074
TOPPAN PRINTING 230,000 2,031,985
TREND MICRO 10,000 943,958
YAMANOUCHI PHARMACEUTICAL 72,000 3,259,680
-----------------
TOTAL JAPAN - (Cost $59,465,026) 68,930,148
-----------------
LATIN AMERICA - 4.2%
BRAZIL - 1.7%
EMBRAER, PREFERRED, ADR 44,000 1,273,250
EMBRATEL PARTICIPACOES, PREFERRED 52,000 841,750
PETROLEO BRASILEIRO, ADR* 30,000 871,875
PETROLEO BRASILIEIRO, ADR 37,000 971,250
-----------------
TOTAL BRAZIL - (Cost $3,687,035) 3,958,125
-----------------
</TABLE>
See notes to financial statements.
7
<PAGE>
MCBT OPPORTUNISTIC EAFE FUND
--------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS
OCTOBER 31, 2000 (Unaudited)
<TABLE>
<CAPTION>
Shares Value
------ -----
<S> <C> <C>
MEXICO - 2.5%
GRUPO FINANCIERO BANAMEX, CLASS B* 510,000 $ 792,533
GRUPO TELEVISA, GDR* 26,500 1,434,313
TELEFONOS DE MEXICO, ADR 37,500 2,022,656
WAL-MART DE MEXICO* 653,000 1,570,614
-----------------
TOTAL MEXICO - (Cost $5,228,798) 5,820,116
-----------------
TOTAL LATIN AMERICA - (Cost $8,915,833) 9,778,241
-----------------
OTHER AREAS - 0.6%
INVESTMENT COMPANIES - 0.6%
INDIAN OPPORTUNITIES FUND* (A) 1 11
NEAR EAST OPPORTUNITIES FUND (B) 82,000 1,287,400
-----------------
TOTAL INVESTMENT COMPANIES - (Cost $1,392,107) 1,287,411
-----------------
TOTAL OTHER AREAS - (Cost $1,392,107) 1,287,411
-----------------
PACIFIC BASIN - 4.0%
AUSTRALIA - 1.0%
AMP 70,000 630,988
BRAMBLES INDUSTRIES 18,500 479,656
COMMONWEALTH BANK OF AUSTRALIA 40,000 595,252
NEWS 58,500 611,928
-----------------
TOTAL AUSTRALIA - (Cost $2,283,516) 2,317,824
-----------------
HONG KONG - 2.2%
BANK OF EAST ASIA 452,000 1,020,028
CHEUNG KONG (HOLDINGS) 92,000 1,017,438
CHINA TELECOM (HONG KONG)* 78,000 500,064
CHINA UNICOM, ADR* 45,877 940,479
HUTCHISON WHAMPOA 77,850 968,259
SUN HUNG KAI PROPERTIES 80,000 656,494
-----------------
TOTAL HONG KONG - (Cost $4,714,802) 5,102,762
-----------------
SINGAPORE - 0.8%
DBS GROUP HOLDINGS 65,000 766,099
OVERSEAS UNION BANK 205,000 992,143
-----------------
TOTAL SINGAPORE - (Cost $1,694,252) 1,758,242
-----------------
TOTAL PACIFIC BASIN - (Cost $8,692,570) 9,178,828
-----------------
TOTAL COMMON AND PREFERRED STOCKS - (Cost $201,539,215) + 224,719,713
-----------------
</TABLE>
See notes to financial statements.
8
<PAGE>
MCBT OPPORTUNISTIC EAFE FUND
--------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS
OCTOBER 31, 2000 (Unaudited)
<TABLE>
<CAPTION> PRINCIPAL
AMOUNT VALUE
--------- -----
<S> <C> <C>
SHORT TERM INVESTMENT - 2.2%
STATE STREET BANK AND TRUST, 5.500%, 11/01/2000 (C) $ 5,160,000 $ 5,160,000
-----------------
TOTAL SHORT TERM INVESTMENT - (Cost $5,160,000) 5,160,000
-----------------
TOTAL INVESTMENTS - (COST $206,699,215) - 99.6% 229,879,713
CASH, RECEIVABLES AND OTHER ASSETS, LESS LIABILITIES - 0.4% 890,686
-----------------
NET ASSETS - 100.0% $ 230,770,399
=================
</TABLE>
* Non-income producing security.
# Illiquid security. Some restrictions may apply to the resale of this
security due to limited trading volume. 144A Securities exempt from
registration under Rule 144A of the Securities Act of 1933. These
securities may be resold in transactions exempt from registration,
normally to qualified institutional buyers.
(a) The Indian Opportunities Fund is managed by Martin Currie Bermuda Ltd.,
an affiliate of Martin Currie Inc. Martin Currie Inc. does not receive
advisory fees on the portion of net assets represented by affiliated
investment companies.
(b) Martin Currie Investment Management Ltd., which is affiliated to Martin
Currie Inc., provides investment management services to the Near East
Opportunities Fund. Martin Currie Inc. does not receive advisory fees on
the portion of net assets represented by affiliated investment companies.
(c) The repurchase agreement, dated 10/31/2000, $5,160,000 par due 11/1/2000,
is collateralized by United States Treasury Bond, 7.50%, due 11/15/2016
with a market value of $5,267,005.
+ Percentages of long term investments are presented in the portfolio by
country. Percentages of long term investments by industry are as follows:
Aerospace 1.1%, Air Travel 0.6%, Automobiles 1.2%, Banks 6.5%,
Broadcasting 0.6%, Business Services 0.6%, Chemicals 5.8%, Commercial
Services 0.6%, Computer Services 1.3%, Computer Software 2.5%,
Conglomerates 0.4%, Construction Materials 0.4%, Diversified 5.3%, Drugs
& Health Care 6.7%, Electrical Equipment 4.7%, Electronics 4.4%,
Financial Services 6.6%, Household Products 1.2%, Industrial Machinery
0.6%, Insurance 6.1%, Investment Companies 0.6%, Leisure 0.5%, Mining
0.2%, Oil & Gas 5.2%, Photography 2.1%, Publishing 4.6%, Real Estate
0.7%, Retail 1.5%, Retail Trade 2.1%, Telecommunications 22.1%,
Transportation 0.6%.
ADR American Depositary Receipts.
GDR Global Depositary Receipts.
See notes to financial statements.
9
<PAGE>
MCBT OPPORTUNISTIC EAFE FUND
--------------------------------------------------------------------------------
STATEMENT OF ASSETS AND LIABILITIES
OCTOBER 31, 2000 (Unaudited)
<TABLE>
<CAPTION>
<S> <C>
ASSETS
Investments in securities, at value (cost $201,539,215) (Note B) $ 224,719,713
Investments in repurchase agreements, at value (Note B) 5,160,000
-----------------
Total Investments 229,879,713
Cash 738
Foreign currency, at value (cost $1,620,035) (Note B) 1,619,474
Receivable for fund shares sold 1,498,070
Receivable for investments sold 1,001,452
Receivable for currency sold 2,476
Dividend and interest receivable 218,835
Foreign tax reclaims receivable 199,363
-----------------
TOTAL ASSETS 234,420,121
-----------------
LIABILITIES
Payable for investments purchased 3,112,575
Management fee payable (Note C) 443,296
Administration fee payable (Note C) 10,336
Trustees fees payable (Note C) 2,737
Accrued expenses and other liabilities 80,778
-----------------
TOTAL LIABILITIES 3,649,722
-----------------
TOTAL NET ASSETS $ 230,770,399
=================
COMPOSITION OF NET ASSETS:
Paid-in-capital $ 194,101,672
Distributions in excess of net investment income (27,924)
Accumulated net realized gain on investment and foreign currency transactions 13,518,669
Net unrealized appreciation on investments and foreign currency translations 23,177,982
-----------------
TOTAL NET ASSETS $ 230,770,399
=================
NET ASSET VALUE PER SHARE $ 13.68
=================
($230,770,399 / 16,870,132 shares of beneficial interest outstanding)
</TABLE>
See notes to financial statements.
10
<PAGE>
MCBT OPPORTUNISTIC EAFE FUND
--------------------------------------------------------------------------------
STATEMENT OF OPERATIONS
SIX MONTHS ENDED OCTOBER 31, 2000 (Unaudited)
<TABLE>
<S> <C>
INVESTMENT INCOME
Interest income $ 252,637
Dividend income 1,625,760
Foreign taxes withheld (242,681)
-----------------
TOTAL INVESTMENT INCOME 1,635,716
-----------------
EXPENSES
Management fee (Note C) 887,187
Custodian fee 131,252
Administration fee (Note C) 88,669
Audit fee 13,316
Legal fees 8,778
Transfer agent fee 3,840
Trustees fees (Note C) 2,182
Miscellaneous expenses 19,387
-----------------
TOTAL EXPENSES 1,154,611
-----------------
NET INVESTMENT INCOME 481,105
-----------------
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS AND FOREIGN CURRENCY
Net realized gain on investments 6,429,112
Net realized loss on foreign currency transactions (404,000)
Net unrealized depreciation on:
Investments (34,828,206)
Foreign currency translations (5,608)
-----------------
NET LOSS ON INVESTMENTS AND FOREIGN CURRENCY TRANSACTIONS (28,808,702)
------------------
NET DECREASE IN NET ASSETS FROM OPERATIONS $ (28,327,597)
==================
</TABLE>
See notes to financial statements.
11
<PAGE>
MCBT OPPORTUNISTIC EAFE FUND
--------------------------------------------------------------------------------
STATEMENT OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
Six Months Ended Year
October 31, 2000 Ended
(Unaudited) April 30, 2000
---------------- --------------
<S> <C> <C>
NET ASSETS, beginning of period $ 261,771,264 $ 213,865,065
--------------- ---------------
INCREASE (DECREASE) IN NET ASSETS FROM OPERATIONS:
Net investment income 481,105 2,097,042
Net realized gain on investment transactions 6,429,112 16,730,859
Net realized loss on foreign currency transactions (404,000) (1,192,568)
Net unrealized appreciation (depreciation) on:
Investments (34,828,206) 26,413,501
Foreign currency translations (5,608) (466)
---------------- ---------------
Net decrease in net assets from operations (28,327,597) 44,048,368
---------------- ---------------
DISTRIBUTIONS TO SHAREHOLDERS FROM:
Net investment income -- (3,243,286)
In excess of net investment income -- (373,313)
Net realized gains -- (15,207,281)
---------------- ---------------
Total distributions -- (18,823,880)
---------------- ---------------
CAPITAL SHARE TRANSACTIONS:
Net proceeds from sales of shares 8,093,489 22,944,900
Reinvestment of dividends and distributions to shareholders -- 17,214,726
Cost of shares repurchased (10,774,765) (17,779,094)
Paid-in-capital from subscription and redemption fees 8,008 301,179
---------------- ---------------
Total increase (decrease) in net assets from capital share transactions (2,673,268) 22,681,711
---------------- ---------------
NET INCREASE (DECREASE) IN NET ASSETS (31,000,865) 47,906,199
---------------- ---------------
NET ASSETS, end of period (includes distributions in excess of net
investment income of ($27,924) and ($509,029), respectively) $ 230,770,399 $ 261,771,264
=============== ===============
OTHER INFORMATION:
Capital Share transactions:
Shares sold 538,680 1,446,234
Shares issued in reinvestment of distributions to shareholders -- 1,051,602
Less shares repurchased (750,394) (1,268,466)
--------------- ---------------
Net share transactions (211,714) 1,229,370
================ ===============
</TABLE>
See notes to financial statements.
12
<PAGE>
MCBT OPPORTUNISTIC EAFE FUND
--------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS
FOR A SHARE OUTSTANDING FOR THE PERIOD
<TABLE>
<CAPTION>
Six Months
Ended Year Year Year Year Year
October 31, 2000 Ended Ended Ended Ended Ended
(Unaudited) April 30, 2000 April 30, 1999 April 30, 1998 April 30, 1997 April 30, 1996
---------------- -------------- -------------- -------------- -------------- --------------
<S> <C> <C> <C> <C> <C> <C>
PER SHARE OPERATING
PERFORMANCE
Net asset value, beginning of period $ 15.320 $ 13.490 $ 13.310 $ 11.320 $ 11.250 $ 9.860
---------------- -------------- -------------- -------------- -------------- --------------
Net investment income 0.028 0.101 0.192 0.095 0.134 0.314
Net realized and unrealized gain(loss) on
investment and foreign currency
transactions (1.668) 2.889 0.786 2.462 0.286 1.239
---------------- -------------- -------------- -------------- -------------- --------------
Total from investment operations (1.640) 2.990 0.978 2.557 0.420 1.553
---------------- -------------- -------------- -------------- -------------- --------------
Less distributions:
Net investment income 0.000 (0.203) (0.106) (0.153) (0.229) (0.167)
In excess of net investment income 0.000 (0.023) 0.000 0.000 (0.127) (0.023)
Net realized gains 0.000 (0.952) (0.728) (0.422) 0.000 0.000
---------------- -------------- -------------- -------------- -------------- --------------
Total distributions 0.000 (1.178) (0.834) (0.575) (0.356) (0.190)
---------------- -------------- -------------- -------------- -------------- --------------
Paid-in-capital from subscription and
redemption fees (Note B) 0.000 * 0.018 0.036 0.008 0.006 0.027
---------------- -------------- -------------- -------------- -------------- --------------
Net asset value, end of period $ 13.680 $ 15.320 $ 13.490 $ 13.310 $ 11.320 $ 11.250
================ ============== ============== ============== ============== ==============
TOTAL INVESTMENT RETURN (2) (3) (10.70)% 21.66% 7.92% 23.33% 3.85% 16.17%
------------------------------ ================ ============== ============== ============== ============== ==============
RATIOS AND SUPPLEMENTAL DATA
----------------------------
Net assets, end of period $230,770,399 $261,771,264 $213,865,065 $159,362,284 $120,649,807 $108,295,237
Operating expenses, net, to average
net assets (Note C) 0.89%(4) 0.92% 0.96% 0.96% 0.98% 1.00%
Operating expenses, gross, to average
net assets (Note C) 0.89%(4) 0.92% 0.96% 0.96% 0.98% 1.05%
Net investment income to average net assets 0.37%(4) 0.89% 0.85% 1.08% 0.90% 1.46%
Portfolio turnover rate (3) 34% 71% 82% 63% 49% 37%
Per share amount of fees waived (Note C) $ 0.000 $ 0.000 $ 0.000 $ 0.000 $ 0.000 $ 0.012
------------------------------------------------------------------------------------------------------------------------------------
</TABLE>
* Amount rounds to less than $0.001.
(2) Total return at net asset value assuming all distributions reinvested and
no purchase premiums or redemption fees.
(3) Periods less than one year are not annualized.
(4) Annualized.
See notes to financial statements.
13
<PAGE>
MCBT OPPORTUNISTIC EAFE FUND
--------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS (Unaudited)
NOTE A - ORGANIZATION
Martin Currie Business Trust ("MCBT") (the "Trust") is registered under the
Investment Company Act of 1940, as amended (the 1940 Act), as an open-end
management investment company organized as a Massachusetts business trust on
May 20, 1994. The Trust offers five funds which have differing investment
objectives and policies: Opportunistic EAFE Fund, Global Emerging Markets
Fund, Japan Small Companies Fund, Asia Pacific ex Japan Fund (formerly
"Emerging Asia Fund") and EMEA Fund, (the "Funds"). The MCBT Opportunistic
EAFE Fund (the "Fund") commenced investment operations on July 1, 1994. The
Fund's Declaration of Trust permits the Board of Trustees to issue an
unlimited number of full and fractional shares of beneficial interest,
without par value.
NOTE B - SIGNIFICANT ACCOUNTING POLICIES
The following is a summary of significant accounting policies followed by the
Fund in the preparation of its financial statements.
VALUATION OF INVESTMENTS - The Fund's portfolio securities traded on a
securities exchange are valued at the last quoted sale price, or, if no sale
occurs, at the mean of the most recent quoted bid and asked prices. Unlisted
securities for which market quotations are readily available are valued at
the mean of the most recent quoted bid and asked prices. Prices for
securities which are primarily traded in foreign markets are furnished by
quotation services expressed in the local currency's value and are translated
into U.S. dollars at the current rate of exchange. Short-term securities and
debt securities with a remaining maturity of 60 days or less are valued at
their amortized cost. Options and futures contracts are valued at the last
sale price on the market where such options or futures contract is
principally traded. Options traded over-the-counter are valued based upon
prices provided by market makers in such securities or dealers in such
currencies. Securities for which current market quotations are unavailable or
for which quotations are not deemed by the investment adviser to be
representative of market values are valued at fair value as determined in
good faith by the Trustees of the Fund, or by persons acting pursuant to
procedures established by the Trustees.
REPURCHASE AGREEMENTS - In connection with transactions in repurchase
agreements, the Fund's custodian takes possession of the underlying
collateral securities, the value or market price of which is at least equal
to the principal amount, including interest, of the repurchase transaction.
To the extent that any repurchase transaction exceeds one business day, the
value of the collateral is marked-to-market on a daily basis to ensure the
adequacy of the collateral. In the event of default of the obligation to
repurchase, the Fund has the right to liquidate the collateral and apply the
proceeds in satisfaction of the obligation. Under certain circumstances, in
the event of default or bankruptcy by the other party to the agreement,
realization and/or retention of the collateral or proceeds may be subject to
legal proceedings that could delay or increase the cost of such realization
or retention.
INVESTMENT TRANSACTIONS - Investment security transactions are recorded on
the date of purchase or sale. Realized gains and losses from security
transactions are determined on the basis of identified cost.
INVESTMENT INCOME - Dividend income is recorded on the ex-dividend date.
Interest income is accrued as earned. Investment income is recorded net of
foreign taxes withheld where recovery of such taxes is uncertain.
FOREIGN CURRENCY TRANSLATIONS - The records of the Fund are maintained in
U.S. dollars. Foreign currency amounts are translated into U.S. dollars at a
current rate of exchange of such currency to determine the value of
investments, other assets and liabilities on the date of any determination of
net asset value of the Fund. Purchases and sales of securities and income and
expenses are converted at the prevailing rate of exchange on the respective
dates of such transactions.
The Fund may realize currency gains or losses between the trade and
settlement dates on security transactions. To minimize such currency gains or
losses, the Fund may enter into forward foreign currency contracts.
14
<PAGE>
MCBT OPPORTUNISTIC EAFE FUND
--------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS (Unaudited) (Continued)
FOREIGN CURRENCY TRANSLATIONS (CONTINUED) - The net U.S. dollar value of
foreign currency underlying all contractual commitments held by the Fund on
each day and the resulting net unrealized appreciation, depreciation and
related net receivable or payable amounts are determined by using forward
currency exchange rates supplied by a quotation service.
Reported net realized gains and losses on foreign currency transactions
represent net gains and losses from sales and maturities of forward currency
contracts, disposition of foreign currencies, currency gains and losses
realized between the trade and settlement dates on security transactions, and
the difference between the amount of net investment income accrued and the
U.S. dollar amount actually received. The effects of changes in foreign
currency exchange rates on investments in securities are not segregated in
the Statement of Operations from the effects of changes in market prices of
those securities, and are included with the net realized and unrealized gain
or loss on investment securities.
FORWARD FOREIGN CURRENCY CONTRACTS - A forward foreign currency contract
("Forward") is an agreement between two parties to buy and sell a currency at
a set price on a future date. The market value of the Forward fluctuates with
changes in currency exchange rates. The Forward is marked-to-market daily and
the change in the market value is recorded by the Fund as an unrealized gain
or loss. When the Forward is closed, the Fund records a realized gain or loss
equal to the difference between the value at the time it was opened and the
value at the time it was closed. The Fund may enter into Forwards in
connection with planned purchases and sales of securities, to hedge specific
receivables or payables against changes in future exchange rates or to hedge
the U.S. dollar value of portfolio securities denominated in a foreign
currency. There were no open forward foreign currency contracts at October
31, 2000.
Although forward currency contracts limit the risk of loss due to a decline
in the value of hedged currency, they also limit any potential gain that
might result should the value of the currency increase. In addition, the
Funds could be exposed to additional risks if the counterparties to the
contracts are unable to meet the terms of their contracts.
EXPENSES - Expenses directly attributable to the Fund are charged to the
Fund. Expenses not directly attributable to a particular Fund are either
split evenly among the affected Funds, allocated on the basis of relative
average net assets, or otherwise allocated among the Funds as the Board of
Trustees may direct or approve.
DISTRIBUTIONS TO SHAREHOLDERS - The Fund declares and distributes dividends
from net investment income, if any, and distributes its net realized capital
gains, if any, at least annually. All distributions will be reinvested in
shares of the Fund at the net asset value unless the shareholder elects in
the subscription agreement either to receive cash in respect of all
distributions or to receive cash with respect to distributions of income and
to reinvest in shares of the Fund with respect to distributions of realized
capital gains. Income and capital gain distributions are determined in
accordance with income tax regulations which may differ from generally
accepted accounting principles. These differences are primarily due to
differing treatments for passive foreign investment companies (PFIC's),
foreign currency transactions, losses deferred due to wash sales, post
October 31 losses and excise tax regulations. Permanent book and tax
differences relating to shareholder distributions will result in
reclassifications to paid-in-capital. Distributions are recorded on the
ex-dividend date.
PURCHASES AND REDEMPTIONS OF FUND SHARES - There is a purchase premium for
cash investments into the Fund of 0.75% of the amount invested and a
redemption fee on cash redemptions of 0.75% of the amount redeemed. All
purchase premiums and redemption fees are paid to and retained by the Fund
and are recorded as paid-in-capital by the Fund. These fees are intended to
offset brokerage and transaction costs arising in connection with the
purchase and redemption. The purchase and redemption fees may be waived by
the Manager, however, if these brokerage and transaction costs are minimal or
in other circumstances at the Manager's discretion. For the six months ended
October 31, 2000, $8,008 was collected in purchase premiums and $0 was
collected in redemption fees. Effective June 28, 2000, the Fund eliminated
all such fees.
INCOME TAXES - Each Fund of the Trust is treated as a separate entity for
U.S. federal income tax purposes. Each Fund intends to qualify each year as a
regulated investment company under Subchapter M of the Internal Revenue Code
of 1986, as amended. By so qualifying, the Funds will not be subject to
federal income taxes to the extent that they distribute substantially all of
their taxable income, including realized capital gains, if any, for the
fiscal year. In addition, by distributing substantially all of their net
investment income, realized capital gains and certain other amounts, if any,
during the calendar year, the Funds will not be subject to a federal excise
tax.
15
<PAGE>
MCBT OPPORTUNISTIC EAFE FUND
--------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS (Unaudited) (Continued)
INCOME TAXES (CONTINUED) - The Fund may be subject to taxes imposed by
countries in which it invests. Such taxes are generally based on income
and/or capital gains earned or repatriated. Taxes are accrued and applied to
net investment income, net realized gains and unrealized appreciation as such
income and/or gains are earned.
ESTIMATES - The preparation of financial statements in conformity with
generally accepted accounting principles requires management to make
estimates and assumptions that affect the reported amounts of assets and
liabilities and income and expenses at the date of the financial statements.
Actual results could differ from these estimates.
NOTE C - AGREEMENTS AND FEES
The Fund has entered into a Management Contract with Martin Currie Inc. (the
"Investment Manager"), a wholly owned subsidiary of Martin Currie Ltd. Under
the Management Contract, the Fund pays the Investment Manager a quarterly
management fee at the annual rate of 0.70% of the Fund's average net assets.
The Investment Manager has voluntarily undertaken to reduce its fee until
further notice to the extent necessary to limit the Fund's annual expenses
(including the management fee but excluding brokerage commissions, transfer
taxes, and extraordinary expenses) to 1.00% of the Fund's average net assets
on an annualized basis. For the six months ended October 31, 2000, it was not
necessary for the Investment Manager to waive any of its fees.
State Street Bank and Trust Company (the "Administrator") serves as
administrator of the Fund. The Administrator performs certain administrative
services for the Fund. The Fund pays the Administrator a fee at the rate of
0.08% of the Fund's average net assets up to $125 million, 0.06% of the next
$125 million, and 0.04% of those assets in excess of $250 million, subject to
certain minimum requirements, plus certain out of pocket costs. State Street
Bank and Trust Company also receives fees and compensation of expenses for
certain custodian and transfer agent services.
Trustees of the Trust who are not interested persons receive aggregate annual
fees of $20,000 ($10,000 per Trustee).
NOTE D - INVESTMENT TRANSACTIONS
Purchases and proceeds from sales and maturities of investments, excluding
short-term securities for the six months ended October 31, 2000 were
$85,882,923 and $82,143,943, respectively.
The identified cost of investments in securities and repurchase agreements
owned for federal income tax purposes and their respective gross unrealized
appreciation and depreciation at October 31, 2000 were as follows:
<TABLE>
<CAPTION>
IDENTIFIED GROSS UNREALIZED NET UNREALIZED
COST APPRECIATION (DEPRECIATION) APPRECIATION
--------------- ------------ -------------- ---------------
<S> <C> <C> <C> <C>
$206,699,215 $35,403,063 ($12,222,565) $23,180,498
</TABLE>
NOTE E - PRINCIPAL SHAREHOLDERS
As of October 31, 2000 there was one shareholder who owned greater than 10% of
the Fund's outstanding shares, representing 20% of the Fund.
NOTE F - CONCENTRATION OF RISK
The Fund will invest extensively in foreign securities (i.e., those which are
not listed on a United States securities exchange). Investing in foreign
securities involves risks not typically found in investing in U.S. markets.
These include risks of adverse change in foreign economic, political,
regulatory and other conditions, and changes in currency exchange rates,
exchange control regulations (including currency blockage), expropriation of
assets or nationalization, imposition of withholding taxes on dividend or
interest payments and capital gains, and possible difficulty in obtaining and
enforcing judgments against foreign entities. Furthermore, issuers of foreign
securities are subject to different, and often less comprehensive,
accounting, reporting and disclosure requirements than domestic issuers. The
securities of some foreign companies and foreign securities markets are less
liquid and at times more volatile than securities of comparable U.S.
companies and U.S. securities markets.
16
<PAGE>
MARTIN CURRIE BUSINESS TRUST
---------------------
TRUSTEES AND OFFICERS
Timothy J.D. Hall, TRUSTEE AND PRESIDENT *
Simon D. Eccles, TRUSTEE
Patrick R. Wilmerding, TRUSTEE
Colin Winchester, VICE PRESIDENT AND TREASURER
J. Grant Wilson, VICE PRESIDENT
Julian M.C. Livingston, CLERK
* INTERESTED TRUSTEE
---------------------
INVESTMENT MANAGER
Martin Currie, Inc.
Saltire Court
20 Castle Terrace
Edinburgh EH1 2ES
Scotland
011-44-131-229-5252
Regulated by IMRO
Registered Investment Adviser with the SEC
--------------------
The information contained in this report is intended for general
informational purposes only. This report is not authorized for distribution
to prospective investors unless preceded or accompanied by a current Private
Placement Memorandum which contains important information concerning the Fund
and its current offering of shares.
