As filed with the Securities and Exchange Commission on May 31, 1996
Registration Nos. 33-84798 and 811-8794
U.S. SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM N-1A
REGISTRATION STATEMENT UNDER THE SECURITIES ACT OF 1933
POST-EFFECTIVE AMENDMENT NO. 6
REGISTRATION STATEMENT
UNDER THE INVESTMENT COMPANY ACT OF 1940
AMENDMENT NO. 8
THE JPM ADVISOR FUNDS
(Exact Name of Registrant as Specified in Charter)
6 St. James Avenue, Boston, Massachusetts 02116
(Address of Principal Executive Offices)
Registrant's Telephone Number, including Area Code: (617) 423-0800
Philip W. Coolidge
6 St. James Avenue, Boston, Massachusetts 02116
(Name and Address of Agent for Service)
Copy to:
Stephen K. West, Esq.
Sullivan & Cromwell
125 Broad Street, New York, New York 10004
It is proposed that this filing will become effective (check appropriate box):
[X] Immediately upon filing pursuant to paragraph (b)
[ ] on (date) pursuant to paragraph (b)
[ ] 60 days after filing pursuant to paragraph (a)(i)
[ ] on (date) pursuant to paragraph (a)(i)
[ ] 75 days after filing pursuant to paragraph (a)(ii)
[ ] on (date) pursuant to paragraph (a)(ii) of rule 485.
If appropriate, check the following box:
[ ] this post-effective amendment designates a new effective date for a
previously filed post-effective amendment.
The Registrant has previously registered an indefinite number of its shares
under the Securities Act of 1933, as amended, pursuant to Rule 24f-2 under the
Investment Company Act of 1940, as amended. The Registrant has not filed Rule
24f-2 notices with respect to The JPM Advisor U.S. Fixed Income Fund (for the
Fiscal Year ended October 31, 1995), The JPM Advisor International Fixed Income
Fund (for the Fiscal Year ended September 30, 1995), The JPM Advisor U.S. Equity
Fund and The JPM Advisor U.S. Small Cap Equity Fund (for their Fiscal Years
ended May 31, 1995), The JPM Advisor International Equity Fund (for the Fiscal
Year ended October 31, 1995), The JPM Advisor Emerging Markets Equity Fund (for
the Fiscal Year ended October 31 1995), The JPM Advisor Japan Equity Fund, The
JPM Advisor European Equity Fund and The JPM Advisor Asia Growth Fund (for their
Fiscal Years ended December 31, 1995) because the Registrant has not sold any
securities to the public with respect to those series during the fiscal years
indicated. The Registrant expects to file Rule 24f-2 notices with respect to its
series as follows: The JPM Advisor U.S. Equity Fund and The JPM Advisor U.S.
Small Cap Equity Fund (for their Fiscal Years ending May 31, 1996) on or before
July 30, 1996; The JPM Advisor Diversified Fund (for the Fiscal Year ending June
30, 1996) on or before August 30, 1996; The JPM Advisor International Fixed
Income Fund (for the Fiscal Year ending September 30, 1996) on or before
November 30, 1996; The JPM Advisor U.S. Fixed Income Fund, The JPM Advisor
International Equity Fund and The JPM Advisor Emerging Markets Equity Fund (for
their Fiscal Years ending October 31, 1996) or or before December 30, 1996; and,
The JPM Advisor Japan Equity Fund, The JPM Advisor European Equity Fund and The
JPM Advisor Asia Growth Fund (for their Fiscal Years ending December 31, 1996)
on or before February 28, 1997.
The U.S. Fixed Income Portfolio, The Non-U.S. Fixed Income Portfolio, The
Selected U.S. Equity Portfolio, The U.S. Small Company Portfolio, The Non-U.S.
Equity Portfolio, The Emerging Markets Equity Portfolio and The Series Portfolio
have also executed this Registration Statement.
JPM588.EDG
<PAGE>
THE JPM ADVISOR FUNDS
CROSS-REFERENCE SHEET
(As Required by Rule 495)
PART A ITEM NO.: Prospectus Headings.
1. COVER PAGE: Cover Page.
2. SYNOPSIS: Investors for Whom the Fund is Designed.
3. CONDENSED FINANCIAL INFORMATION: Financial Highlights, where
applicable.
4. GENERAL DESCRIPTION OF REGISTRANT: Cover Page; Investors for Whom the
Fund is Designed; Investment Objective and Policies; Risk Factors and
Additional Investment Information; Investment Restrictions; Special
Information Concerning Hub and Spoke(R); Organization; Appendix.
5. MANAGEMENT OF THE FUND: Management of the Trust and the Portfolio;
Shareholder Transactions; Additional Information.
5A. MANAGEMENT'S DISCUSSION OF FUND PERFORMANCE: Not applicable.
6. CAPITAL STOCK AND OTHER SECURITIES: Special Information Concerning Hub
and Spoke(R); Shareholder Transactions; Net Asset Value; Purchase of
Shares; Taxes; Dividends and Distributions; Organization.
7. PURCHASE OF SECURITIES BEING OFFERED: Purchase of Shares; Exchange of
Shares; Investors for Whom the Fund is Designed; Dividends and
Distributions; Net Asset Value.
8. REDEMPTION OR REPURCHASE: Redemption of Shares; Exchange of Shares; Net
Asset Value.
9. PENDING LEGAL PROCEEDINGS: Not applicable.
PART B ITEM NO.: Statement of Additional Information Headings.
10. COVER PAGE: Cover Page.
11. TABLE OF CONTENTS: Table of Contents.
12. GENERAL INFORMATION AND HISTORY: General.
13. INVESTMENT OBJECTIVES AND POLICIES: Investment Objectives and Policies;
Additional Investments; Investment Restrictions; Quality and
Diversification Requirements; Appendices A and B.
14. MANAGEMENT OF THE FUND: Trustees and Officers.
15. CONTROL PERSONS AND PRINCIPAL HOLDERS OF SECURITIES: Description of
Shares.
16. INVESTMENT ADVISORY AND OTHER SERVICES: Investment Advisor;
Administrator and Distributor; Services Agent; Custodian; Independent
Accountants; Expenses.
17. BROKERAGE ALLOCATION AND OTHER PRACTICES: Portfolio Transactions.
18. CAPITAL STOCK AND OTHER SECURITIES: Massachusetts Trust; Description of
Shares.
19. PURCHASE, REDEMPTION AND PRICING OF SECURITIES BEING OFFERED: Net Asset
Value; Purchase of Shares; Redemption of Shares; Exchange of Shares;
Dividends and Distributions.
20. TAX STATUS: Taxes.
21. UNDERWRITERS: Administrator and Distributor.
22. CALCULATION OF PERFORMANCE DATA: Performance Data.
23. FINANCIAL STATEMENTS: Financial Statements.
PART C
Information required to be included in Part C is set forth under the
appropriately numbered items included in Part C of this registration statement.
<PAGE>
EXPLANATORY NOTE
This post-effective amendment no. 6 (the "Amendment") to the Registrant's
registration statement on Form N-1A is being filed with respect to The JPM
Advisor Emerging Markets Equity Fund and The JPM Advisor International Equity
Fund, each a series of shares of the Registrant (the "Funds"), pursuant to the
Registrant's undertaking to file a post-effective amendment to the registration
statement, using financials which need not be certified, within four to six
months following the date of the first public investor in each of the Funds. The
Amendment is being filed to include (i) supplements to the Funds' prospectuses
containing updated unaudited financial information, and (ii) a supplement to the
Registrant's Statement of Additional Information containing unaudited financial
statements. As a result, the Amendment does not affect any of the Registrant's
currently effective prospectuses or statement of additional information, each of
which is hereby incorporated herein by reference as most recently filed pursuant
to Rule 497 under the Securities Act of 1933, as amended.
<PAGE>
THE JPM ADVISOR EMERGING MARKETS EQUITY FUND
PROSPECTUS SUPPLEMENT DATED MAY 31, 1996
TO THE PROSPECTUS DATED JANUARY 31, 1996
The second full paragraph under the caption "Example" on page 2 of the
Prospectus is restated in its entirety as follows:
FINANCIAL HIGHLIGHTS
The following selected data for a share outstanding are unaudited. The Fund's
semiannual financial statements are part of the Statement of Additional
Information and are incorporated herein. The financial statements and subsequent
semiannual reports are available without charge upon request. Future reports
will include a discussion of those factors, strategies and techniques that
materially affected the Fund's performance during the period of the report, as
well as certain related information.
<TABLE>
<CAPTION>
FOR THE PERIOD
NOVEMBER 22, 1995
(COMMENCEMENT OF
OPERATIONS)
THROUGH APRIL 30, 1996
(UNAUDITED)
-----------------------
<S> <C>
NET ASSET VALUE, BEGINNING OF PERIOD $ 10.30
------
INCOME FROM INVESTMENT OPERATIONS
Net Investment Income 0.04
Net Realized and Unrealized Gain on Investment and Foreign Currency 1.69
------
Total from Investment Operations 1.73
------
DISTRIBUTIONS TO SHAREHOLDERS FROM
Net Investment Income (0.02)
------
NET ASSET VALUE, END OF PERIOD $ 12.01
------
------
Total Return 19.92%(a)
RATIOS AND SUPPLEMENTAL DATA
Net Assets at end of Period (in thousands) $ 1,861
Ratios to Average Net Assets (b)
Expenses 1.95%
Net Investment Income 1.05%
Decrease Reflected in Expense Ratio due to Expense Reimbursement 0.55%(c)
</TABLE>
- ------------------------
(a) Not Annualized.
(b) Annualized.
(c) After consideration of certain state limitations.
<PAGE>
THE JPM ADVISOR INTERNATIONAL EQUITY FUND
PROSPECTUS SUPPLEMENT DATED MAY 31, 1996
TO THE PROSPECTUS DATED JANUARY 31, 1996
The second full paragraph under the caption "Example" on page 2 of the
Prospectus is restated in its entirety as follows:
FINANCIAL HIGHLIGHTS
The following selected data for a share outstanding are unaudited. The Fund's
semiannual financial statements are part of the Statement of Additional
Information and are incorporated herein. The financial statements and subsequent
semiannual reports are available without charge upon request. Future reports
will include a discussion of those factors, strategies and techniques that
materially affected the Fund's performance during the period of the report, as
well as certain related information.
<TABLE>
<CAPTION>
FOR THE PERIOD
NOVEMBER 22, 1995
(COMMENCEMENT OF
OPERATIONS) THROUGH
APRIL 30, 1996
(UNAUDITED)
--------------------
<S> <C>
NET ASSET VALUE, BEGINNING OF PERIOD $ 10.90
------
INCOME FROM INVESTMENT OPERATIONS
Net Investment Income 0.02
Net Realized and Unrealized Gain on Investment and Foreign Currency 1.17
------
Total from Investment Operations 1.19
------
DISTRIBUTIONS TO SHAREHOLDERS FROM
Net Realized Gain 0.00*
------
NET ASSET VALUE, END OF PERIOD $ 12.09
------
------
Total Return 10.92 %(a)
------
------
RATIOS AND SUPPLEMENTAL DATA (B)
Net Assets at end of Period (in thousands) $ 270
Ratios to Average Net Assets
Expenses 1.65 %
Net Investment Income 0.71 %
Decrease Reflected in Expense Ratio due to Expense Reimbursement 0.85 %(c)
</TABLE>
- ------------------------
(a) Not Annualized.
(b) Annualized.
(c) After consideration of certain state limitations.
* Less than $0.01
<PAGE>
THE JPM ADVISOR FUNDS
SUPPLEMENT DATED MAY 31, 1996
TO THE STATEMENT OF ADDITIONAL INFORMATION MAY 1, 1996
THE JPM ADVISOR EMERGING MARKETS EQUITY FUND
THE JPM ADVISOR INTERNATIONAL EQUITY FUND
FINANCIAL STATEMENTS (UNAUDITED)
APRIL 30, 1996
<PAGE>
THE JPM ADVISOR EMERGING MARKETS EQUITY FUND
STATEMENT OF ASSETS AND LIABILITIES (UNAUDITED)
APRIL 30, 1996
- --------------------------------------------------------------------------------
<TABLE>
<S> <C>
ASSETS
Investment in The Emerging Markets Equity Portfolio ("Portfolio"), at value $1,849,034
Deferred Organization Expenses 30,681
Receivable for Shares of Beneficial Interest Sold 16,500
Receivable for Expense Reimbursement 20,350
----------
Total Assets 1,916,565
----------
LIABILITIES
Organization Expenses Payable 33,628
Accrued Expenses 22,155
----------
Total Liabilities 55,783
----------
NET ASSETS
Applicable to 154,920 Shares of Beneficial Interest Outstanding $1,860,782
(par value $0.001, unlimited shares authorized)
----------
----------
Net Asset Value, Offering and Redemption Price Per Share $12.01
----------
----------
ANALYSIS OF NET ASSETS
Paid-In Capital $1,770,648
Undistributed Net Investment Income 3,251
Accumulated Net Realized Gain on Investment and Foreign Currency Transactions 268
Net Unrealized Appreciation of Investment and Foreign Currency Translations 86,615
----------
Net Assets $1,860,782
----------
----------
</TABLE>
The Accompanying Notes are an Integral Part of the Financial Statements.
8
<PAGE>
THE JPM ADVISOR EMERGING MARKETS EQUITY FUND
STATEMENT OF OPERATIONS (UNAUDITED)
FOR THE PERIOD NOVEMBER 22, 1995 (COMMENCEMENT OF OPERATIONS) THROUGH APRIL 30,
1996
- --------------------------------------------------------------------------------
<TABLE>
<S> <C> <C>
INVESTMENT INCOME FROM PORTFOLIO
Allocated Dividend Income (Net of $916 Foreign Withholding Taxes) $ 9,522
Allocated Interest Income 1,323
Allocated Portfolio Expenses (4,388)
---------
Net Investment Income Allocated from Portfolio 6,457
FUND EXPENSES
Transfer Agent Fees $ 6,456
Registration Fees 5,903
Printing Expenses 4,665
Amortization of Organization Expenses 2,947
Trustees' Fees and Expenses 1,459
Insurance Expense 565
Administration Fee 45
Miscellaneous 3,535
---------
Total Expenses 25,575
Less: Reimbursement of Expenses (22,944)
---------
NET FUND EXPENSES (2,631)
---------
NET INVESTMENT INCOME 3,826
NET REALIZED GAIN ON INVESTMENT AND FOREIGN CURRENCY TRANSACTIONS
ALLOCATED FROM PORTFOLIO 268
NET CHANGE IN UNREALIZED APPRECIATION OF INVESTMENT AND FOREIGN
CURRENCY TRANSLATIONS ALLOCATED FROM PORTFOLIO 86,615
---------
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS $ 90,709
---------
---------
</TABLE>
The Accompanying Notes are an Integral Part of the Financial Statements.
9
<PAGE>
THE JPM ADVISOR EMERGING MARKETS EQUITY FUND
STATEMENT OF CHANGES IN NET ASSETS
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
FOR THE PERIOD
NOVEMBER 22, 1995
(COMMENCEMENT OF
OPERATIONS)
THROUGH APRIL 30, 1996
(UNAUDITED)
----------------------
<S> <C>
INCREASE IN NET ASSETS
FROM OPERATIONS
Net Investment Income $ 3,826
Net Realized Gain on Investment and Foreign Currency Transactions Allocated from
Portfolio 268
Net Change in Unrealized Appreciation of Investment and Foreign Currency Translations
Allocated from Portfolio 86,615
----------
Net Increase in Net Assets Resulting from Operations 90,709
----------
DISTRIBUTIONS TO SHAREHOLDERS FROM
Net Investment Income (575)
----------
Total Distributions to Shareholders (575)
----------
TRANSACTIONS IN SHARES OF BENEFICIAL INTEREST
Proceeds from Shares of Beneficial Interest Sold 2,765,854
Reinvestment of Dividends and Distributions 575
Cost of Shares of Beneficial Interest Redeemed (995,884)
----------
Net Increase from Transactions in Shares of Benificial Interest 1,770,545
----------
Total Increase in Net Assets 1,860,679
NET ASSETS
Beginning of Period 103
----------
End of Period (including undistributed net investment income of $3,251) $ 1,860,782
----------
----------
</TABLE>
The Accompanying Notes are an Integral Part of the Financial Statements.
10
<PAGE>
THE JPM ADVISOR EMERGING MARKETS EQUITY FUND
FINANCIAL HIGHLIGHTS
- --------------------------------------------------------------------------------
Selected Data for a share outstanding throughout the period is as follows:
<TABLE>
<CAPTION>
FOR THE PERIOD
NOVEMBER 22, 1995
(COMMENCEMENT OF
OPERATIONS)
THROUGH APRIL 30, 1996
(UNAUDITED)
-----------------------
<S> <C>
NET ASSET VALUE, BEGINNING OF PERIOD $ 10.30
------
INCOME FROM INVESTMENT OPERATIONS
Net Investment Income 0.04
Net Realized and Unrealized Gain on Investment and Foreign Currency 1.69
------
Total from Investment Operations 1.73
------
DISTRIBUTIONS TO SHAREHOLDERS FROM
Net Investment Income (0.02)
------
NET ASSET VALUE, END OF PERIOD $ 12.01
------
------
Total Return 19.92%(a)
RATIOS AND SUPPLEMENTAL DATA
Net Assets at end of Period (in thousands) $ 1,861
Ratios to Average Net Assets (b)
Expenses 1.95%
Net Investment Income 1.05%
Decrease Reflected in Expense Ratio due to Expense Reimbursement 0.55%(c)
</TABLE>
- ------------------------
(a) Not Annualized.
(b) Annualized.
(c) After consideration of certain state limitations.
The Accompanying Notes are an Integral Part of the Financial Statements.
11
<PAGE>
THE JPM ADVISOR EMERGING MARKETS EQUITY FUND
NOTES TO FINANCIAL STATEMENTS (UNAUDITED)
APRIL 30, 1996
- --------------------------------------------------------------------------------
1. ORGANIZATION AND SIGNIFICANT ACCOUNTING POLICIES
The JPM Advisor Emerging Markets Equity Fund (the "Fund") is a separate series
of The JPM Advisor Funds, a Massachusetts business trust (the "Trust"). The
Trust is registered under the Investment Company Act of 1940, as amended, as a
no-load, open-end management investment company. The Fund commenced operations
on November 22, 1995.
The Fund invests all of its investable assets in The Emerging Markets Equity
Portfolio (the "Portfolio"), a no-load, diversified, open-end management
investment company having the same investment objective as the Fund. The value
of such investment reflects the Fund's proportionate interest in the net assets
of the Portfolio (less than 1% at April 30, 1996). The performance of the Fund
is directly affected by the performance of the Portfolio. The financial
statements of the Portfolio, including the schedule of investments, are included
elsewhere in this report and should be read in conjunction with the Fund's
financial statements.
The preparation of financial statements prepared in accordance with generally
accepted accounting principals requires management to make estimates and
assumptions that affect the reported amounts and disclosures. Actual amounts
could differ from those estimates. The following is a summary of the significant
accounting policies of the Fund:
a)Valuation of securities by the Portfolio is discussed in Note 1 of the
Portfolio's Notes to Financial Statements which are included elsewhere in
this report.
b)The Fund records its share of net investment income, realized and
unrealized gain and loss and adjusts its investment in the Portfolio each
day. All the net investment income and realized and unrealized gain and
loss of the Portfolio is allocated pro rata among the Fund and other
investors in the Portfolio at the time of such determination.
c)Distributions to shareholders of net investment income and net realized
capital gains, if any, are declared and paid annually.
d)The Fund incurred organization expenses in the amount of $33,627. These
costs were deferred and are being amortized by the Fund on a straight-line
basis over a five-year period from the commencement of operations.
e)Each series of the Trust is treated as a separate entity for federal
income tax purposes. The Fund intends to comply with the provisions of the
Internal Revenue Code of 1986, as amended, applicable to regulated
investment companies and to distribute substantially all of its income,
including net realized capital gains, if any, within the prescribed time
periods. Accordingly, no provision for federal income or excise tax is
necessary.
f)Expenses incurred by the Trust with respect to any two or more funds in
the Trust are allocated in proportion to the net assets of each fund in
the Trust, except where allocations of direct expenses to each fund can
otherwise be made fairly. Expenses directly attributable to a fund are
charged to that fund.
12
<PAGE>
THE JPM ADVISOR EMERGING MARKETS EQUITY FUND
NOTES TO FINANCIAL STATEMENTS (UNAUDITED) (CONTINUED)
APRIL 30, 1996
- --------------------------------------------------------------------------------
2. TRANSACTIONS WITH AFFILIATES
a)The Trust has retained Signature Broker-Dealer Services, Inc.
("Signature") to serve as administrator and distributor. Signature
provides administrative services necessary for the operations of the Fund,
furnishes office space and facilities required for conducting the business
of the Fund and pays the compensation of the Fund's officers affiliated
with Signature. The agreement provided for a fee to be paid to Signature
at an annual rate determined by the following schedule: 0.04% of the first
$1 billion of the aggregate average daily net assets of the Trust, as well
as two other affiliated fund families for which Signature acts as
administrator, 0.032% of the next $2 billion of such net assets, 0.024% of
the next $2 billion of such net assets, and 0.016% of such net assets in
excess of $5 billion. The daily equivalent of the fee rate is applied
daily to the net assets of the Fund. For the period November 22, 1995
(commencement of operations) through December 28, 1995, there was no fee
for these services.
Effective December 29, 1995, the Administration Agreement was amended such
that the fee charged would be equal to the Fund's proportionate share of a
complex-wide fee based on the following annual schedule: 0.03% on the
first $7 billion of the aggregate average daily net assets of the
Portfolio and the other portfolios (the "Master Portfolios") in which
series of the Trust, The JPM Institutional Funds, or The Pierpont Funds
invest and 0.01% on the aggregate average daily net assets of the Master
Portfolios in excess of $7 billion. The portion of this charge payable by
the Fund is determined by the proportionate share its net assets bear to
the total net assets of the Trust, The JPM Institutional Funds, The
Pierpont Funds and the Master Portfolios. For the period December 29, 1995
through April 30, 1996, such fees amounted to $45.
b)The Trust, on behalf of the Fund, has a Services Agreement with Morgan
Guaranty Trust Company of New York ("Morgan") under which Morgan would
receive a fee, based on the percentage described below, for overseeing
certain aspects of the administration and operation of the Fund and for
providing shareholder servicing to Fund shareholders. The Services
Agreement is also designed to provide an expense limit for certain
expenses of the Fund. If total expenses of the Fund, excluding
amortization of organization expenses, exceed the expense limit of 0.77%
of the Fund's average daily net assets, Morgan will reimburse the Fund for
the excess expense amount and receive no fee. Should such expenses be less
than the expense limit, Morgan's fee would be limited to the difference
between such expenses and the fee calculated under the Services Agreement.
For the period November 22, 1995 (commencement of operations) through
April 30, 1996, Morgan has agreed to reimburse the Fund $19,747 under the
Services Agreement.
In addition to the expenses that Morgan assumes under the Services
Agreement, Morgan has agreed to reimburse the Fund to the extent necessary
to maintain the total operating expenses of the Fund, including the
expenses allocated to the Fund from the Portfolio, at no more than 1.95%
of the average daily net assets of the Fund through December 31, 1996. For
the period from November 22, 1995 (commencement of operations) through
April 30, 1996, Morgan has agreed to reimburse the Fund $3,197 for
expenses under this agreement. Morgan, Charles Schwab & Co. ("Schwab") and
the Trust are parties to separate services and operating agreements (the
"Schwab Agreements") whereby Schwab makes Fund shares available to
customers of investment advisors and other financial
13
<PAGE>
THE JPM ADVISOR EMERGING MARKETS EQUITY FUND
NOTES TO FINANCIAL STATEMENTS (UNAUDITED) (CONTINUED)
APRIL 30, 1996
- --------------------------------------------------------------------------------
intermediaries who are Schwab's clients. In the event the Services
Agreement with the Trust is terminated, the Fund would be responsible for
the ongoing payments to Schwab under the Schwab Agreements.
c)An aggregate annual fee of $16,000 is paid to each Trustee for serving as
a Trustee of The Trust. The Trustees' Fees and Expenses shown in the
financial statements represents the Fund's allocated portion of the total
fees and expenses.
3. TRANSACTIONS IN SHARES OF BENEFICIAL INTEREST
The Declaration of Trust permits the Trustees to issue an unlimited number of
full and fractional shares of beneficial interest of one or more series.
Transactions in shares of beneficial interest of the Fund were as follows:
<TABLE>
<CAPTION>
FOR THE PERIOD NOVEMBER 22, 1995
(COMMENCEMENT OF OPERATIONS)
THROUGH APRIL 30, 1996
---------------------------------
<S> <C>
Shares of beneficial interest sold 239,376
Shares of beneficial interest redeemed (84,466)
-------
Net increase 154,910
-------
-------
</TABLE>
14
<PAGE>
The Emerging Markets Equity Portfolio
Semi-Annual Report April 30, 1996
(unaudited)
(The following pages should be read in conjunction
with The JPM Advisor Emerging Markets Equity Fund
Annual Financial Statements)
<PAGE>
<PAGE>
THE JPM ADVISOR EMERGING MARKETS EQUITY FUND
STATEMENT OF ASSETS AND LIABILITIES (UNAUDITED)
APRIL 30, 1996
- --------------------------------------------------------------------------------
<TABLE>
<S> <C>
ASSETS
Investment in The Emerging Markets Equity Portfolio ("Portfolio"), at value $1,849,034
Deferred Organization Expenses 30,681
Receivable for Shares of Beneficial Interest Sold 16,500
Receivable for Expense Reimbursement 20,350
----------
Total Assets 1,916,565
----------
LIABILITIES
Organization Expenses Payable 33,628
Accrued Expenses 22,155
----------
Total Liabilities 55,783
----------
NET ASSETS
Applicable to 154,920 Shares of Beneficial Interest Outstanding $1,860,782
(par value $0.001, unlimited shares authorized)
----------
----------
Net Asset Value, Offering and Redemption Price Per Share $12.01
----------
----------
ANALYSIS OF NET ASSETS
Paid-In Capital $1,770,648
Undistributed Net Investment Income 3,251
Accumulated Net Realized Gain on Investment and Foreign Currency Transactions 268
Net Unrealized Appreciation of Investment and Foreign Currency Translations 86,615
----------
Net Assets $1,860,782
----------
----------
</TABLE>
The Accompanying Notes are an Integral Part of the Financial Statements.
8
<PAGE>
THE JPM ADVISOR EMERGING MARKETS EQUITY FUND
STATEMENT OF OPERATIONS (UNAUDITED)
FOR THE PERIOD NOVEMBER 22, 1995 (COMMENCEMENT OF OPERATIONS) THROUGH APRIL 30,
1996
- --------------------------------------------------------------------------------
<TABLE>
<S> <C> <C>
INVESTMENT INCOME FROM PORTFOLIO
Allocated Dividend Income (Net of $916 Foreign Withholding Taxes) $ 9,522
Allocated Interest Income 1,323
Allocated Portfolio Expenses (4,388)
---------
Net Investment Income Allocated from Portfolio 6,457
FUND EXPENSES
Transfer Agent Fees $ 6,456
Registration Fees 5,903
Printing Expenses 4,665
Amortization of Organization Expenses 2,947
Trustees' Fees and Expenses 1,459
Insurance Expense 565
Administration Fee 45
Miscellaneous 3,535
---------
Total Expenses 25,575
Less: Reimbursement of Expenses (22,944)
---------
NET FUND EXPENSES (2,631)
---------
NET INVESTMENT INCOME 3,826
NET REALIZED GAIN ON INVESTMENT AND FOREIGN CURRENCY TRANSACTIONS
ALLOCATED FROM PORTFOLIO 268
NET CHANGE IN UNREALIZED APPRECIATION OF INVESTMENT AND FOREIGN
CURRENCY TRANSLATIONS ALLOCATED FROM PORTFOLIO 86,615
---------
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS $ 90,709
---------
---------
</TABLE>
The Accompanying Notes are an Integral Part of the Financial Statements.
9
<PAGE>
THE JPM ADVISOR EMERGING MARKETS EQUITY FUND
STATEMENT OF CHANGES IN NET ASSETS
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
FOR THE PERIOD
NOVEMBER 22, 1995
(COMMENCEMENT OF
OPERATIONS)
THROUGH APRIL 30, 1996
(UNAUDITED)
----------------------
<S> <C>
INCREASE IN NET ASSETS
FROM OPERATIONS
Net Investment Income $ 3,826
Net Realized Gain on Investment and Foreign Currency Transactions Allocated from
Portfolio 268
Net Change in Unrealized Appreciation of Investment and Foreign Currency Translations
Allocated from Portfolio 86,615
----------
Net Increase in Net Assets Resulting from Operations 90,709
----------
DISTRIBUTIONS TO SHAREHOLDERS FROM
Net Investment Income (575)
----------
Total Distributions to Shareholders (575)
----------
TRANSACTIONS IN SHARES OF BENEFICIAL INTEREST
Proceeds from Shares of Beneficial Interest Sold 2,765,854
Reinvestment of Dividends and Distributions 575
Cost of Shares of Beneficial Interest Redeemed (995,884)
----------
Net Increase from Transactions in Shares of Benificial Interest 1,770,545
----------
Total Increase in Net Assets 1,860,679
NET ASSETS
Beginning of Period 103
----------
End of Period (including undistributed net investment income of $3,251) $ 1,860,782
----------
----------
</TABLE>
The Accompanying Notes are an Integral Part of the Financial Statements.
10
<PAGE>
THE JPM ADVISOR EMERGING MARKETS EQUITY FUND
FINANCIAL HIGHLIGHTS
- --------------------------------------------------------------------------------
Selected Data for a share outstanding throughout the period is as follows:
<TABLE>
<CAPTION>
FOR THE PERIOD
NOVEMBER 22, 1995
(COMMENCEMENT OF
OPERATIONS)
THROUGH APRIL 30, 1996
(UNAUDITED)
-----------------------
<S> <C>
NET ASSET VALUE, BEGINNING OF PERIOD $ 10.30
------
INCOME FROM INVESTMENT OPERATIONS
Net Investment Income 0.04
Net Realized and Unrealized Gain on Investment and Foreign Currency 1.69
------
Total from Investment Operations 1.73
------
DISTRIBUTIONS TO SHAREHOLDERS FROM
Net Investment Income (0.02)
------
NET ASSET VALUE, END OF PERIOD $ 12.01
------
------
Total Return 19.92%(a)
RATIOS AND SUPPLEMENTAL DATA
Net Assets at end of Period (in thousands) $ 1,861
Ratios to Average Net Assets (b)
Expenses 1.95%
Net Investment Income 1.05%
Decrease Reflected in Expense Ratio due to Expense Reimbursement 0.55%(c)
</TABLE>
- ------------------------
(a) Not Annualized.
(b) Annualized.
(c) After consideration of certain state limitations.
The Accompanying Notes are an Integral Part of the Financial Statements.
11
<PAGE>
THE JPM ADVISOR EMERGING MARKETS EQUITY FUND
NOTES TO FINANCIAL STATEMENTS (UNAUDITED)
APRIL 30, 1996
- --------------------------------------------------------------------------------
1. ORGANIZATION AND SIGNIFICANT ACCOUNTING POLICIES
The JPM Advisor Emerging Markets Equity Fund (the "Fund") is a separate series
of The JPM Advisor Funds, a Massachusetts business trust (the "Trust"). The
Trust is registered under the Investment Company Act of 1940, as amended, as a
no-load, open-end management investment company. The Fund commenced operations
on November 22, 1995.
The Fund invests all of its investable assets in The Emerging Markets Equity
Portfolio (the "Portfolio"), a no-load, diversified, open-end management
investment company having the same investment objective as the Fund. The value
of such investment reflects the Fund's proportionate interest in the net assets
of the Portfolio (less than 1% at April 30, 1996). The performance of the Fund
is directly affected by the performance of the Portfolio. The financial
statements of the Portfolio, including the schedule of investments, are included
elsewhere in this report and should be read in conjunction with the Fund's
financial statements.
The preparation of financial statements prepared in accordance with generally
accepted accounting principals requires management to make estimates and
assumptions that affect the reported amounts and disclosures. Actual amounts
could differ from those estimates. The following is a summary of the significant
accounting policies of the Fund:
a)Valuation of securities by the Portfolio is discussed in Note 1 of the
Portfolio's Notes to Financial Statements which are included elsewhere in
this report.
b)The Fund records its share of net investment income, realized and
unrealized gain and loss and adjusts its investment in the Portfolio each
day. All the net investment income and realized and unrealized gain and
loss of the Portfolio is allocated pro rata among the Fund and other
investors in the Portfolio at the time of such determination.
c)Distributions to shareholders of net investment income and net realized
capital gains, if any, are declared and paid annually.
d)The Fund incurred organization expenses in the amount of $33,627. These
costs were deferred and are being amortized by the Fund on a straight-line
basis over a five-year period from the commencement of operations.
e)Each series of the Trust is treated as a separate entity for federal
income tax purposes. The Fund intends to comply with the provisions of the
Internal Revenue Code of 1986, as amended, applicable to regulated
investment companies and to distribute substantially all of its income,
including net realized capital gains, if any, within the prescribed time
periods. Accordingly, no provision for federal income or excise tax is
necessary.
f)Expenses incurred by the Trust with respect to any two or more funds in
the Trust are allocated in proportion to the net assets of each fund in
the Trust, except where allocations of direct expenses to each fund can
otherwise be made fairly. Expenses directly attributable to a fund are
charged to that fund.
12
<PAGE>
THE JPM ADVISOR EMERGING MARKETS EQUITY FUND
NOTES TO FINANCIAL STATEMENTS (UNAUDITED) (CONTINUED)
APRIL 30, 1996
- --------------------------------------------------------------------------------
2. TRANSACTIONS WITH AFFILIATES
a)The Trust has retained Signature Broker-Dealer Services, Inc.
("Signature") to serve as administrator and distributor. Signature
provides administrative services necessary for the operations of the Fund,
furnishes office space and facilities required for conducting the business
of the Fund and pays the compensation of the Fund's officers affiliated
with Signature. The agreement provided for a fee to be paid to Signature
at an annual rate determined by the following schedule: 0.04% of the first
$1 billion of the aggregate average daily net assets of the Trust, as well
as two other affiliated fund families for which Signature acts as
administrator, 0.032% of the next $2 billion of such net assets, 0.024% of
the next $2 billion of such net assets, and 0.016% of such net assets in
excess of $5 billion. The daily equivalent of the fee rate is applied
daily to the net assets of the Fund. For the period November 22, 1995
(commencement of operations) through December 28, 1995, there was no fee
for these services.
Effective December 29, 1995, the Administration Agreement was amended such
that the fee charged would be equal to the Fund's proportionate share of a
complex-wide fee based on the following annual schedule: 0.03% on the
first $7 billion of the aggregate average daily net assets of the
Portfolio and the other portfolios (the "Master Portfolios") in which
series of the Trust, The JPM Institutional Funds, or The Pierpont Funds
invest and 0.01% on the aggregate average daily net assets of the Master
Portfolios in excess of $7 billion. The portion of this charge payable by
the Fund is determined by the proportionate share its net assets bear to
the total net assets of the Trust, The JPM Institutional Funds, The
Pierpont Funds and the Master Portfolios. For the period December 29, 1995
through April 30, 1996, such fees amounted to $45.
b)The Trust, on behalf of the Fund, has a Services Agreement with Morgan
Guaranty Trust Company of New York ("Morgan") under which Morgan would
receive a fee, based on the percentage described below, for overseeing
certain aspects of the administration and operation of the Fund and for
providing shareholder servicing to Fund shareholders. The Services
Agreement is also designed to provide an expense limit for certain
expenses of the Fund. If total expenses of the Fund, excluding
amortization of organization expenses, exceed the expense limit of 0.77%
of the Fund's average daily net assets, Morgan will reimburse the Fund for
the excess expense amount and receive no fee. Should such expenses be less
than the expense limit, Morgan's fee would be limited to the difference
between such expenses and the fee calculated under the Services Agreement.
For the period November 22, 1995 (commencement of operations) through
April 30, 1996, Morgan has agreed to reimburse the Fund $19,747 under the
Services Agreement.
In addition to the expenses that Morgan assumes under the Services
Agreement, Morgan has agreed to reimburse the Fund to the extent necessary
to maintain the total operating expenses of the Fund, including the
expenses allocated to the Fund from the Portfolio, at no more than 1.95%
of the average daily net assets of the Fund through December 31, 1996. For
the period from November 22, 1995 (commencement of operations) through
April 30, 1996, Morgan has agreed to reimburse the Fund $3,197 for
expenses under this agreement. Morgan, Charles Schwab & Co. ("Schwab") and
the Trust are parties to separate services and operating agreements (the
"Schwab Agreements") whereby Schwab makes Fund shares available to
customers of investment advisors and other financial
13
<PAGE>
THE JPM ADVISOR EMERGING MARKETS EQUITY FUND
NOTES TO FINANCIAL STATEMENTS (UNAUDITED) (CONTINUED)
APRIL 30, 1996
- --------------------------------------------------------------------------------
intermediaries who are Schwab's clients. In the event the Services
Agreement with the Trust is terminated, the Fund would be responsible for
the ongoing payments to Schwab under the Schwab Agreements.
c)An aggregate annual fee of $16,000 is paid to each Trustee for serving as
a Trustee of The Trust. The Trustees' Fees and Expenses shown in the
financial statements represents the Fund's allocated portion of the total
fees and expenses.
3. TRANSACTIONS IN SHARES OF BENEFICIAL INTEREST
The Declaration of Trust permits the Trustees to issue an unlimited number of
full and fractional shares of beneficial interest of one or more series.
Transactions in shares of beneficial interest of the Fund were as follows:
<TABLE>
<CAPTION>
FOR THE PERIOD NOVEMBER 22, 1995
(COMMENCEMENT OF OPERATIONS)
THROUGH APRIL 30, 1996
---------------------------------
<S> <C>
Shares of beneficial interest sold 239,376
Shares of beneficial interest redeemed (84,466)
-------
Net increase 154,910
-------
-------
</TABLE>
14
<PAGE>
THE EMERGING MARKETS EQUITY PORTFOLIO
SCHEDULE OF INVESTMENTS (UNAUDITED)
APRIL 30, 1996
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
DESCRIPTION SHARES VALUE
- ---------------------------------------------------------------------------------- ------------ ------------
<S> <C> <C>
COMMON STOCKS (85.2%)
ARGENTINA (6.1%)
Astra Compania Argentina De Petroleo SA (Oil - Services)........................ 1,122,340 $ 2,394,706
Banco Frances Del Rio De La Plata SA (ADR) (Banking)............................ 114,655 3,296,330
Capex SA (Utilities)............................................................ 486,000 3,588,893
Corporacion Cementeria Argentina SA (Class B) (Building Materials)*............. 413,000 1,824,616
Molinos Rio de la Plata SA (Multi-Industry)*.................................... 337,182 3,521,005
Nobleza Piccardo (Class B) (Multi-Industry)..................................... 232,688 759,322
Perez Companc SA (Oil - Services)............................................... 360,700 4,534,395
Quilmes Industrials (Quinsa) (Registered) (Food, Beverages & Tobacco)........... 93,850 1,126,200
Telefonica de Argentina SA (Utilities).......................................... 427,600 12,507,300
Transportadora De Gas Del Sur SA (ADR) (Oil - Services)......................... 299,100 3,813,524
YPF Sociedad Anonima (ADS) (Oil - Production)................................... 579,500 12,676,562
------------
50,042,853
------------
BOLIVIA (0.3%)
Compania Boliviana De Energia Electrica (Electric).............................. 61,600 2,279,200
------------
BRAZIL (2.1%)
Companhia Energetica De Minas Gerais SA (CEMIG) (Spon. ADR Rep Non-Vtg)
(Utilities)*................................................................... 176,418 4,578,479
Electrobras Centrale (Units) (Utilities)........................................ 11,382,000 2,741,675
Makro Atacadista SA (GDS) (Retail) (144A)*...................................... 300,000 2,280,000
Perdigao Commercio Industrio SA (Food, Beverages & Tobacco)..................... 44,384,895 89,467
Santa Elina Gold Corp. Inc. (Metals & Mining)*.................................. 3,300,000 6,180,887
Santista Alimentos SA (Food, Beverages & Tobacco)*.............................. 75,000 114,896
Votorantim Celulose E Papel (ADR) (Forest Products & Paper)..................... 139,250 1,357,688
------------
17,343,092
------------
CANADA (0.0%)1
Minera Rayrock, Inc. (Multiple Voting B Shares) (Metals & Mining)*.............. 6,000 5,288
Minera Rayrock, Inc. (Subsidiary Voting A Shares) (Metals & Mining)*............ 145,000 130,467
------------
135,755
------------
CHILE (2.9%)
Antofagasta Holdings plc (Multi-Industry).......................................
Compania Cervecerias Unidas SA (ADR) (Food, Beverages & Tobacco)................ 256,000 5,456,000
Compania Telecomunicacion Chile (Spon. ADR) (Utilities)......................... 69,700 6,360,125
Enersis SA (ADR) (Utilities).................................................... 59,900 1,782,025
Madeco SA (Metals & Mining)..................................................... 129,000 3,225,000
Sociedad Quimica Y Minera De Chile (Spon. ADR) (Chemicals)...................... 137,146 7,337,311
------------
24,160,461
------------
CHINA (0.8%)
Dongfang Electrical Machinery Co. (Series H) (Capital Goods).................... 3,200,000 786,013
Luoyang Glass Co. Ltd. (Series H) (Building Materials).......................... 3,574,000 914,842
</TABLE>
The Accompanying Notes are an Integral Part of the Financial Statements.
16
<PAGE>
THE EMERGING MARKETS EQUITY PORTFOLIO
SCHEDULE OF INVESTMENTS (UNAUDITED) (CONTINUED)
APRIL 30, 1996
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
DESCRIPTION SHARES VALUE
- ---------------------------------------------------------------------------------- ------------ ------------
CHINA (CONTINUED)
<S> <C> <C>
Shanghai Erfangji Co. (Series B) (Capital Goods)*............................... 161,200 $ 21,601
Shanghai Shangling Electric Appliances (Series B) (Electrical Equipment)........ 100,000 64,800
Shanghai Tyre and Rubber Co. Ltd. (Series B) (Metal & Mining)................... 3,229,990 775,198
Tsingtao Brewery (Series H) (Food, Beverages & Tobacco)......................... 6,720,000 1,846,097
Yizheng Chemical Fibre (Series H) (Chemicals)................................... 7,702,000 2,066,084
------------
6,474,635
------------
COLOMBIA (0.2%)
Banco Ganadero SA (Banking) 53,000 821,500
Banco Industrial Colombiano (ADR) (Banking)..................................... 30,400 596,600
Corp Financiera Del Valle SA (ADR) (Banking) (144A)............................. 18,815 174,037
------------
1,592,137
------------
CROATIA (0.0%)1
Pliva (GDS) (Pharmaceuticals)*.................................................. 57,800 1,856,825
------------
CZECH REPUBLIC (3.1%)
Central European Media Enterprises Ltd. (Entertainment, Leisure & Media)*....... 123,000 3,536,250
Ceska Pojistovna (Insurance)*................................................... 4,940 879,793
Cokoladovny Praha (Food, Beverages & Tobacco)*.................................. 36,100 4,747,248
Elektrarny Opatovice AS (Utilities)............................................. 30,500 4,938,102
SPT Telecom AS (Telecommunications)*............................................ 80,100 9,798,489
Synthesia (Chemicals)*.......................................................... 63,000 1,326,002
------------
25,225,884
------------
ECUADOR (0.2%)
La Cemento Nacional CA (GDR) (Construction & Housing) (144A).................... 10,240 1,576,960
------------
GHANA ( 0.1% )
Guinness Ghana Ltd. (Food, Beverages & Tobacco)................................. 1,476,596 213,958
Pioneer Tobacco Co. (Food, Beverages & Tobacco)................................. 2,848,800 224,997
Unilever Ghana Ltd. (Food, Beverages & Tobacco)................................. 450,000 223,879
------------
662,834
------------
GREECE (2.6%)
Alpha Credit Bank (Registered) (Banking)........................................ 47,287 2,364,332
Athens Medical Centre (Registered) (Health Services)............................ 190,000 1,308,723
Boutaris Wine Co. (Food, Beverages & Tobacco)*.................................. 14,400 28,044
Ergo Bank (Banking)............................................................. 45,400 2,282,081
Hellenic Bottling Co. SA (Food, Beverages & Tobacco)............................ 235,602 8,452,240
Hellenic Sugar Industry SA (Food, Beverages & Tobacco).......................... 234,850 2,200,197
Michaniki SA (Building Materials)............................................... 126,720 1,449,553
Titan Cement Co. (Registered) (Building Materials).............................. 66,000 3,044,257
------------
21,129,427
------------
</TABLE>
The Accompanying Notes are an Integral Part of the Financial Statements.
17
<PAGE>
THE EMERGING MARKETS EQUITY PORTFOLIO
SCHEDULE OF INVESTMENTS (UNAUDITED) (CONTINUED)
APRIL 30, 1996
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
DESCRIPTION SHARES VALUE
- ---------------------------------------------------------------------------------- ------------ ------------
HONG KONG (1.5%)
<S> <C> <C>
Citic Pacific Ltd. (Multi-Industry)............................................. 644,000 $ 2,530,963
Guangdong Investments (Multi-Industry).......................................... 3,192,190 1,970,554
M. C. Packaging (Packaging & Containers)........................................ 2,850,000 948,743
Pacific Concord Holding (Transport & Services).................................. 10,120,000 1,870,867
World Houseware Holdings (Consumer Goods & Services)............................ 12,204,000 1,483,052
Yue Yuen Industrial Holdings (Consumer Goods & Services)........................ 14,870,000 3,614,058
------------
12,418,237
------------
HUNGARY (1.6%)
Hungarian Foreign Trade Bank Ltd. (Banking)*.................................... 17,000 1,550,598
Julius Meinl International AG (Food, Beverages & Tobacco)*...................... 16,800 560,584
Magyar Olaj Es Gaz (Oil - Production)*.......................................... 334,000 3,604,883
Pick Szeged RT (Spon. GDS) (Food, Beverages & Tobacco) (144A)................... 45,600 2,190,816
Polifarb Cieszyn SA (Chemicals)................................................. 315,914 1,660,571
Skala Coop (Munich Exchange) (Retail)*.......................................... 25,000 280,823
Skala Coop (Vienna Exchange) (Retail)*.......................................... 5,000 59,669
Wedel SA (Food, Beverages & Tobacco)............................................ 45,025 1,707,392
Zalakeramia RT (Building Materials)............................................. 29,333 1,041,320
------------
12,656,656
------------
INDIA (4.1%)
Ashok Leyland Ltd. (GDR) (Automotive)*.......................................... 267,900 3,616,650
Bajaj Auto Ltd. (GDR) (Automotive)*............................................. 156,200 5,584,150
Hindustan Development Corp. (GDR) (Multi-Industry) (144A)....................... 1,000,000 700,000
Indian Petrochemicals Corp. Ltd. (GDR) (Chemicals).............................. 395,800 7,817,050
ITC Ltd. (GDR) (Food, Beverages & Tobacco)*..................................... 421,300 3,686,375
Raymond Ltd. (GDR) (Textiles & Apparel)*........................................ 136,100 2,892,125
Shriram Industrial Enterprises (GDR) (Multi-Industry) (144A).................... 258,000 1,130,040
Shriram Industrial Enterprises (GDR) (Multi-Industry)........................... 246,900 1,081,422
Shriram Industrial Enterprises (GDR & Warrant Units) (Multi-Industry) (144A).... 1,000 12,500
Southern Petrochemical Industrial Corp. (GDS) (Chemicals)*...................... 556,500 4,368,525
Videocon International Ltd. (GDR) (Entertainment, Leisure & Media).............. 1,008,500 2,823,800
------------
33,712,637
------------
INDONESIA (4.2%)
P.T. APAC Centertex (Textiles & Apparel)*....................................... 360,000 417,271
P.T. Bakrie and Brothers (Multi-Industry)....................................... 175,000 285,478
P.T. Duta Anggada Realty (Real Estate).......................................... 4,031,000 2,682,231
P.T. Fastfood Indonesia (Food, Beverages & Tobacco)............................. 197,000 253,711
P.T. Goodyear Indonesia (Capital Goods)......................................... 100,000 113,762
P.T. Indorama Synthetic (Textiles & Apparel).................................... 180,000 583,406
P.T. Indorayon Utama (Forest Products & Paper).................................. 642,000 792,364
P.T. International Nickel Indonesia (Metals & Mining)........................... 3,555,700 8,586,168
P.T. Jakarta International Hotels and Development (Real Estate)................. 1,555,000 2,069,397
P.T. Modern Photo Film Co. (Consumer Goods & Services).......................... 377,500 1,863,659
P.T. Multi Bintang Indonesia (Multi-Industry)................................... 200,000 2,232,313
P.T. Niaga Bank (Banking)....................................................... 1,308,600 3,258,267
</TABLE>
The Accompanying Notes are an Integral Part of the Financial Statements.
18
<PAGE>
THE EMERGING MARKETS EQUITY PORTFOLIO
SCHEDULE OF INVESTMENTS (UNAUDITED) (CONTINUED)
APRIL 30, 1996
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
DESCRIPTION SHARES VALUE
- ---------------------------------------------------------------------------------- ------------ ------------
INDONESIA (CONTINUED)
<S> <C> <C>
P.T. Pakuwon Jati (Real Estate)................................................. 11,158,000 $ 4,550,527
P.T. Pan Brothers Textiles (Textiles & Apparel)*................................ 165,000 53,125
P.T. Putra Surya Perkasa (Building Materials)................................... 1,350,000 666,474
P.T. Surya Toto Indonesia (Metals & Mining)..................................... 900,000 1,970,445
P.T. Tempo Scan Pacific (Health & Personal Care)................................ 664,000 1,696,043
P.T. Unilever Indonesia (Consumer Goods & Services)............................. 47,605 766,365
P.T. United Tractors (Capital Goods)............................................ 500,000 971,271
------------
33,812,277
------------
ISRAEL (1.8%)
First International Bank (Banking).............................................. 9,711 1,124,360
Israel Chemicals Ltd. (Chemicals)............................................... 4,492,500 3,755,249
Koor Industries Ltd. (Multi Industry)........................................... 287,900 5,398,125
Teva Pharmaceutical Industries Ltd. (Pharmaceuticals)........................... 90,900 4,079,138
------------
14,356,872
------------
MALAYSIA (11.1%)
Antah Holdings Berhad (Multi-Industry).......................................... 235,200 320,675
Carlsberg Brewery Malaysia Berhad (Food, Beverages & Tobacco)................... 565,416 3,922,507
Cold Storage Malaysia Berhad (Retail)........................................... 74,000 127,006
Edaran Otomobil Nasional Berhad (Automotive).................................... 592,000 5,056,510
Golden Hope Plantations Berhad (Metals & Mining)................................ 3,005,166 5,374,683
Hong Leong Industries Berhad (Multi-Industry)................................... 807,000 4,368,746
Kian Joo Can Factory Berhad (Capital Goods)..................................... 814,000 4,700,417
Kuala Lumpur Kepong Berhad (Metals & Mining).................................... 2,695,500 6,917,813
Land & General Berhad (Real Estate)............................................. 383,000 1,021,339
Lion Corp. Berhad (Multi-Industry).............................................. 1,086,000 2,917,791
London & Pacific Insurance Co. Berhad (Insurance)............................... 90,000 570,229
Malayan Cement Berhad (Building Materials)...................................... 349,000 867,694
Malaysia Mining Corp. Berhad (Metals & Mining).................................. 1,659,000 3,259,808
Malaysian Assurance Alliance Berhad (Insurance)................................. 493,500 2,948,648
Malaysian International Shipping Corp. Berhad (Transport & Services)............ 1,666,333 5,345,660
Malaysian Tobacco Co. Berhad (Food, Beverages & Tobacco)........................ 322,000 555,231
Matsushita Electric Co. Malaysia Berhad (Electronics)........................... 296,000 3,204,830
Nestle Malaysia Berhad (Food, Beverages & Tobacco).............................. 1,065,000 9,053,885
New Straits Times Press Berhad (Entertainment, Leisure & Media)................. 100,000 537,346
Nylex Malaysia Berhad (Chemicals)............................................... 422,000 1,726,085
Perlis Plantations Berhad (Transport & Services)................................ 1,476,000 6,214,772
Putera Capital Berhad (Real Estate)............................................. 1,000 2,326
Resorts World Berhad (Entertainment, Leisure & Media)........................... 907,000 5,492,041
Shell Refining Company Malaysia Berhad (Oil - Production)....................... 996,500 3,056,949
Sime U.E.P. Properties Berhad (Real Estate)..................................... 1,434,000 3,018,964
Sistem Televisyen Malaysia Berhad (Entertainment, Leisure & Media).............. 1,270,000 5,652,964
Tanjong Co. Berhad (Entertainment, Leisure & Media)............................. 393,000 1,497,151
UMW Holdings Berhad (Automotive)................................................ 911,200 2,996,243
------------
90,728,313
------------
</TABLE>
The Accompanying Notes are an Integral Part of the Financial Statements.
19
<PAGE>
THE EMERGING MARKETS EQUITY PORTFOLIO
SCHEDULE OF INVESTMENTS (UNAUDITED) (CONTINUED)
APRIL 30, 1996
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
DESCRIPTION SHARES VALUE
- ---------------------------------------------------------------------------------- ------------ ------------
MEXICO (8.3%)
<S> <C> <C>
Cementos Mexicanos SA de CV (Class B) (Building Materials)...................... 1,431,675 $ 6,088,323
Cifra SA de CV (Class B) (Retail)*.............................................. 2,645,000 3,633,454
Cydsa SA de CV (Class A) (Registered) (Chemicals)............................... 456,720 1,164,120
Desc Sociedad de Fomento Industrial SA de CV (Class A) (Multi-Industry)*........ 268,000 1,294,289
Desc Sociedad de Fomento Industrial SA de CV (Class B) (Multi-Industry)*........ 244,000 1,214,389
Fomento Economico Mexicana SA de CV (Class B) (Food, Beverages & Tobacco)....... 1,800,000 5,408,969
Grupo Carso SA de CV (Class A) (Multi-Industry)*................................ 858,400 6,529,302
Grupo Casa Autrey S.A. de CV (Spon. ADR) (Retail)............................... 188,500 4,311,938
Grupo Embotellador De Mexico SA de CV (Class BCP) (Food, Beverages &
Tobacco)*...................................................................... 464,000 168,064
Grupo Financiero Banamex Accival SA de CV (Class B) (Banking)*.................. 632,000 1,451,493
Grupo Financiero Banamex Accival SA de CV (Class L) (Banking)*.................. 18,960 38,814
Grupo Financiero Bancomer SA de CV (Financial Services)*........................ 7,560,000 3,346,800
Grupo Financiero Probursa SA de CV (Class B) (Banking)*......................... 1,050 56
Grupo Industrial Maseca SA de CV (Class B) (Spon. ADR) (Food, Beverages &
Tobacco)....................................................................... 323,333 4,728,745
Industrias Penoles SA de CV (Class CP) (Metals & Mining)........................ 691,500 2,903,558
Kimberley Clark De Mexico SA de CV (Class A) (Forest Products & Paper).......... 273,000 4,980,759
Telefonos De Mexico SA de CV (ADR) (Utilities).................................. 200,000 334,375
Telefonos De Mexico SA de CV (ADR L Shares) (Utilities)......................... 506,320 17,214,880
Transportacion Maritima Mexicana SA de CV (ADR L Shares) (Transport &
Services)...................................................................... 349,800 2,929,575
------------
67,741,903
------------
MOROCCO (0.3%)
Banque Commerciale Du Maroc (Banking)........................................... 85 4,515
Wafa Bank (Banking)............................................................. 57,500 2,692,512
------------
2,697,027
------------
PAKISTAN (1.0%)
Hub Power Co. (GDR) (Utilities)*................................................ 235,500 5,593,125
Pakistan Telecom Corp. (GDR) (Utilities)*....................................... 28,000 2,772,000
------------
8,365,125
------------
PERU (0.7%)
Cementos Norte Pacasmayo (Class T) (Building Materials)......................... 811,058 1,267,036
Creditcorp Holdings Ltd. (Financial Services)................................... 120,416 2,047,078
Minsur SA (Class T) (Metals & Mining)*.......................................... 1 8
Telefonica del Peru SA (Utilities).............................................. 1,070,500 2,395,509
------------
5,709,631
------------
PHILIPPINES (2.5%)
Filiinvest Land Inc. (Building Materials)*...................................... 9,559,000 4,933,133
Manila Electric Co. (Class B) (Utilities)....................................... 510,000 4,757,038
Petron Corp. (Oil - Services)................................................... 9,082,675 3,906,096
Philippine Long Distance Telephone Co. (ADR) (Utilities)........................ 5,600 281,400
Philippine National Bank (Banking)*............................................. 224,190 3,342,393
RFM Corp (Food, Beverages & Tobacco)............................................ 172,065 42,097
</TABLE>
The Accompanying Notes are an Integral Part of the Financial Statements.
20
<PAGE>
THE EMERGING MARKETS EQUITY PORTFOLIO
SCHEDULE OF INVESTMENTS (UNAUDITED) (CONTINUED)
APRIL 30, 1996
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
DESCRIPTION SHARES VALUE
- ---------------------------------------------------------------------------------- ------------ ------------
PHILIPPINES (CONTINUED)
<S> <C> <C>
San Miguel Corp. (Class B) (Food, Beverages & Tobacco).......................... 990,000 $ 3,103,314
------------
20,365,471
------------
POLAND (0.9%)
Bank Przemyslowo-Handlowy SA (Banking).......................................... 64,160 3,276,166
Zaklady Piwowarslie w Zywcu SA (Zywiec) (Food, Beverages & Tobacco)............. 50,400 4,163,083
------------
7,439,249
------------
PORTUGAL (2.1%)
Banco Commercial Portugues SA (ADR) (Banking)................................... 30,200 345,413
Banco Commercial Portugues SA (Registered) (Banking)............................ 135,499 1,551,567
Cimpor Cimentos de Portugal SA (Building Materials)............................. 122,000 2,288,740
Corporacao Industrial Do Norte (Building Materials)............................. 92,400 2,174,881
Empresa Fabril De Maquinas Electricas S.A. (Capital Goods)...................... 82,000 758,995
Empresa Nacional De Electricas SA (Capital Goods)............................... 144,800 2,823,600
Mague-Gestao E Participacoes (Building Materials)............................... 16,576 271,531
Modelo Continente SGPS SA (Retail).............................................. 47,800 1,216,325
Portugal Telecom SA (ADR) (Telecommunications).................................. 138,000 2,984,250
Uniao Cervejaria SA (UNICER) (Registered) (Food, Beverages & Tobacco)........... 132,000 2,376,415
------------
16,791,717
------------
RUSSIA (0.5%)
Rostelekom (RDC) (Registered) (Telecommunications)*............................. 295 4,012,000
------------
SLOVAK REPUBLIC (0.6%)
Nafta AS (Natural Gas).......................................................... 45,000 3,558,316
Slovenske Lodenice AS (Capital Goods)........................................... 20,000 1,187,078
------------
4,745,394
------------
SOUTH AFRICA (8.8%)
Amalgamated Banks of South Africa (Banking)..................................... 1,399,735 6,557,709
Anglo American Corp of South Africa Ltd. (Multi-Industry)....................... 101,400 6,873,641
Anglovaal (GDR) (Multi-Industry)................................................ 172,000 5,891,000
De Beers Consolidated Mines Ltd. (Centenary Linked Units) (Metals & Mining)..... 229,000 7,298,076
Distillers Corporation of South Africa (Food, Beverages & Tobacco).............. 850,000 2,428,662
Engen Ltd. (Oil - Production)................................................... 675,800 3,799,319
Iscor Ltd. (Metals & Mining).................................................... 1,932,000 1,765,572
Kersaf Investments Ltd. (Entertainment, Leisure & Media)........................ 111,400 1,301,541
Malbak Ltd. (GDR) (Multi-Industry) (144A)....................................... 375,000 1,781,250
Omni Media Corp. Ltd. (Entertainment, Leisure & Media).......................... 209,465 3,634,578
Pepkor Ltd. (ADS) (Retail)...................................................... 500,000 5,205,500
Polifin Ltd. (Chemicals)........................................................ 104,700 199,113
Premier Group (Food, Beverages & Tobacco)....................................... 1,145,917 1,590,691
Sasol Ltd. (Oil - Production)................................................... 698,200 7,268,983
South African Breweries Ltd. (South Africa) (Food, Beverages & Tobacco)......... 65,900 1,924,855
South African Breweries Ltd. (United Kingdom) (Food, Beverages & Tobacco)....... 220,367 6,344,976
</TABLE>
The Accompanying Notes are an Integral Part of the Financial Statements.
21
<PAGE>
THE EMERGING MARKETS EQUITY PORTFOLIO
SCHEDULE OF INVESTMENTS (UNAUDITED) (CONTINUED)
APRIL 30, 1996
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
DESCRIPTION SHARES VALUE
- ---------------------------------------------------------------------------------- ------------ ------------
SOUTH AFRICA (CONTINUED)
<S> <C> <C>
Sun International Bophuthatswana Ltd. (Entertainment, Leisure & Media).......... 2,199,600 $ 2,809,080
Trans Natal Coal Corp. Ltd. (Metals & Mining)................................... 713,400 5,652,948
------------
72,327,494
------------
SOUTH KOREA (3.8%)
Dong Ah Construction Industrial Co. (EDR) (Building Materials)*................. 158,224 3,480,928
Hansol Paper Co. (GDS) (Forest Products & Paper)................................ 142,188 2,950,401
Hansol Paper Co. Ltd. (GDR) (Forest Products & Paper)* (144A)................... 20,903 433,737
Hyundai Motor Co. (GDS represents 1/2 Non-voting shares) (Automotive)*.......... 144,400 2,238,200
Kia Motors Corp. (GDS) (Automotive) (144A)*..................................... 1,074 23,897
Korea Electric Power Corp. (Utilities).......................................... 40,900 1,936,567
Korea Electric Power Corp. (ADR) (Utilities).................................... 145,000 4,023,750
Korea Long Term Credit Bank (Banking)........................................... 77,100 2,418,440
Korea Zinc Co. (Metals & Mining)................................................ 30,020 752,213
Pohang Iron & Steel Co. (ADS) (Metals & Mining)................................. 125,000 3,437,500
Pohang Iron & Steel Co. (Metals & Mining)....................................... 100 9,562
Samsung Electronics Co. (GDS represents 1/2 Non-voting shares) (Electronics)
(144A)......................................................................... 107,810 4,420,210
Samsung Electronics Co. (GDS represents 1/2 Non-voting shares) (Electronics)
(144A)......................................................................... 32,491 1,234,658
Samsung Electronics Co. (GDS represents 1/2 Voting shares) (Electronics)
(144A)......................................................................... 6,147 465,635
Samsung Electronics Co. (GDS represents 1/2 Voting shares, New, RFD 3/14/95)
(144A) (Electronics)........................................................... 1,852 123,158
Samsung Engineering and Construction (GDS represents Non-Voting shares)
(Building Materials)*.......................................................... 7,699 60,630
Samsung Engineering and Construction (GDS) (Building Materials)*................ 126 945
Shinhan Bank (Banking).......................................................... 125,000 3,204,732
------------
31,215,163
------------
SRI LANKA (0.0%)1
Distilleries Co. of Sri Lanka (Food, Beverages & Tobacco)....................... 500,000 54,811
------------
TAIWAN (2.0%)
Asia Cement (GDS) (Building Materials).......................................... 133,701 2,807,721
China Steel Corp. (GDS) (Metals & Mining)....................................... 188,500 4,203,550
Hocheng Group Corp. (GDR) (Building Materials) (144A)*.......................... 354,912 4,613,856
Microelectronics Technology (GDS) (Telecommunications)*......................... 46,899 272,014
President Enterprises (GDR) (Food, Beverages & Tobacco)* (144A)................. 24,563 417,571
President Enterprises Corp. (GDR) (Food, Beverages & Tobacco)*.................. 245,772 4,178,124
------------
16,492,836
------------
THAILAND (7.3%)
Advanced Info Service Public Co. (Telecommunications)........................... 447,200 7,474,243
American Standard Sanitaryware Public Co. (Building Materials).................. 94,800 1,535,623
Bangkok Bank Public Co. Ltd. (Banking).......................................... 389,000 5,638,760
Bangkok Insurance Public Co. (Insurance)........................................ 9,800 170,778
Bangkok Rubber Public Co. Ltd. (Metals & Mining)................................ 454,300 206,916
Bumrungrad Hospital Public Co. Ltd. (Health & Personal Care).................... 493,050 497,948
Charoen Pokphand Feedmill Public Co. Ltd. (Agriculture)......................... 329,700 1,919,505
</TABLE>
The Accompanying Notes are an Integral Part of the Financial Statements.
22
<PAGE>
THE EMERGING MARKETS EQUITY PORTFOLIO
SCHEDULE OF INVESTMENTS (UNAUDITED) (CONTINUED)
APRIL 30, 1996
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
DESCRIPTION SHARES VALUE
- ---------------------------------------------------------------------------------- ------------ ------------
THAILAND (CONTINUED)
<S> <C> <C>
Dhana Siam Finance and Securities Public Co. (Financial Services)............... 567,768 $ 4,002,615
International Cosmetics Public Co. Ltd. (Retail)................................ 262,040 2,283,196
Krung Thai Bank Public Co. Ltd. (Banking)....................................... 304,600 1,495,907
Lanna Lignite Public Co. Ltd. (Metals & Mining)................................. 212,500 1,615,895
Oriental Hotel Public Co. Ltd. (Entertainment, Leisure & Media)................. 264,200 1,245,182
Phatra Thanakit Public Co. Ltd. (Financial Services)............................ 633,000 5,515,429
Sahavirya Steel Industries Public Co. Ltd. (Metals & Mining)*................... 1,981,000 1,863,378
Siam Cement Public Co. Ltd. (Building Materials)................................ 114,000 5,869,501
Siam Commercial Bank Public Co. (Banking)....................................... 770,700 11,354,846
Telecomasia (Telecommunications)*............................................... 583,600 1,525,500
Thai Farmers Bank Public Co. Ltd. (Banking)..................................... 330,100 3,791,373
Thai Plastic and Chemical Public Co. Ltd. (Chemicals)........................... 239,000 1,277,864
------------
59,284,459
------------
TURKEY (2.3%)
Adana Cimento Sanayii (Class A) (Building Materials)............................ 7,617,600 1,291,247
Akbank TAS (Banking)............................................................ 14,458,434 1,721,422
Akbank TAS (New shares) (Banking)............................................... 21,822,651 2,582,133
Alarko Holdings A.S. (Multi-Industry)........................................... 348,000 124,918
Aygaz A.S. (Oil - Services)..................................................... 4,263,889 878,656
Compagnie Financiere Ottomane (Financial Services).............................. 4,500 258,155
Eregli Demir Ve Celik Fabrikalari (Metals & Mining)............................. 13,475,000 1,469,006
Guney Biracilik Ve Malt Sanay (Food, Beverages & Tobacco)....................... 5,128,080 1,090,827
Mardin Cimento (Building Materials)............................................. 10,800,000 1,435,836
Migros Turk A.S. (Food, Beverages & Tobacco).................................... 4,954,800 5,665,075
Teletas Telekomunikasyon Endustri Ticaret AS (Telecommunications)*.............. 2,840,000 943,929
Turkiye Garanti Bankasi (ADR) (Banking) (144A).................................. 69,295 398,446
Turk Siemens Kablo Ve Elecktrik Sanayii (Electrical Equipment).................. 2,302,000 872,230
Yapi Ve Kredi Bankasi A.S. (Banking)............................................ 4,342,170 294,414
------------
19,026,294
------------
VENEZUELA (1.1%)
Ceramicas Carabobo CA (Spon. ADR) (Class A) (Building Materials)................ 1,408,000 1,506,560
Ceramicas Carabobo CA (Spon. ADR) (Class B) (Building Materials)................ 351,998 376,638
Mavesa CA (Spon. ADR) (Food, Beverages & Tobacco)............................... 602,829 3,251,539
Mavesa CA (Spon. ADR) (144A) (Food, Beverages & Tobacco)........................ 188,259 1,015,431
Venezolana De Prerreducidos Caroni CA (GDS) (Registered) (Metals & Mining)*..... 263,000 1,528,030
Venezolana De Pulpa Y Papel CA (Venepal) (GDS) (Class B) (Forest Products &
Paper) (144A).................................................................. 739,047 1,478,094
------------
9,156,292
------------
ZIMBABWE (0.3%)
Trans Zambezi Industries Ltd. (Multi-Industry).................................. 1,300,000 2,145,000
------------
Total Common Stocks (cost $671,891,743)....................................... 697,734,921
------------
</TABLE>
The Accompanying Notes are an Integral Part of the Financial Statements.
23
<PAGE>
THE EMERGING MARKETS EQUITY PORTFOLIO
SCHEDULE OF INVESTMENTS (UNAUDITED) (CONTINUED)
APRIL 30, 1996
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
DESCRIPTION SHARES VALUE
- ---------------------------------------------------------------------------------- ------------ ------------
PREFERRED STOCKS (7.6%)
<S> <C> <C>
ARGENTINA (0.1%)
Quilmes Industrials (Quinsa) (Sponsored ADR non voting) (Food, Beverages &
Tobacco)*...................................................................... 78,325 $ 930,109
------------
BRAZIL (7.2%)
Banco Do Estado De Sao Paulo SA (BANESPA) (Banking)*............................ 215,300,000 878,817
Ceval Alimentos SA (ADR) (Food, Beverages & Tobacco)............................ 190,000 2,152,377
Cia Acos Especiais Itabira (ACESITA) (ADR) (Metals & Mining).................... 420,000 3,620,400
Companhia Energetica De Minas Gerais SA (CEMIG) (ADR) (Utilities) (144A)........ 287,547 7,462,506
Companhia Hering (Textiles & Apparel)........................................... 71,300,000 423,976
Companhia Vale Do Rio Doce SA (Spon. ADR) (Metals & Mining)..................... 387,200 7,082,895
Copene Petroquimica do Nordeote SA (Spon. ADR) (Class A) (Chemicals)............ 166,200 4,187,475
Hering Textile Companhia SA (Textiles & Apparel)*............................... 14,260,000 13,653
Iochpe Maxion SA (Automotive)*.................................................. 22,260,000 2,467,842
Perdigao Commercio Industrio SA (Food, Beverages & Tobacco)..................... 900,000,000 1,623,660
Petroleo Brasileiro SA (Oil - Production)....................................... 59,733,333 6,953,416
Refrigeracao Parana SA (ADR) (Capital Goods).................................... 251,771 3,133,768
Telecomunicacoes Brasileiras SA (Telebras) (ADR) (Telecommunications)........... 218,863 11,845,960
Telecomunicacoes de Minas Gerais SA (Telemig) (Telecommunications)*............. 48,000,000 3,923,391
Telecomunicacoes do Rio de Janeiro SA (Telerj) (Telecommunications)*............ 35,750,000 2,614,044
Viacao Aerea Riograndense SA (Varig) (Transport & Services)*.................... 130,000 353,758
------------
58,737,938
------------
GREECE (0.0%)1
Boutaris Wine Co. (Food, Beverages & Tobacco)*.................................. 25,150 44,855
Delta Dairy S.A. (Food, Beverages & Tobacco).................................... 1,417 13,043
Michaniki SA (Building Materials)............................................... 11,520 95,409
------------
153,307
------------
PHILIPPINES (0.3%)
Philippine Long Distance Telephone Co. (GDS) (Utilities)........................ 90,000 2,610,000
------------
Total Preferred Stock (cost $52,670,587)...................................... 62,431,354
------------
<CAPTION>
PRINCIPAL
AMOUNT
------------
<S> <C> <C>
CONVERTIBLE BONDS (1.8%)
INDONESIA (0.1%)
P.T. Inti Indorayon Utama (7% Cnv Bds, due 05/02/06) (Forest Products &
Paper)......................................................................... $ 900,000 733,500
------------
MEXICO (0.1%)
Nacional Financiera (11.25% Cnv Bds, due 05/15/98) (Financial Services)......... 25,000 862,500
------------
PORTUGAL (0.1%)
Banco Commercial Portuguese SA (8.75% Conv Bds, due 5/2/21) (Banking)........... 519,000 668,823
------------
</TABLE>
The Accompanying Notes are an Integral Part of the Financial Statements.
24
<PAGE>
THE EMERGING MARKETS EQUITY PORTFOLIO
SCHEDULE OF INVESTMENTS (UNAUDITED) (CONTINUED)
APRIL 30, 1996
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PRINCIPAL
DESCRIPTION AMOUNT VALUE
- ---------------------------------------------------------------------------------- ------------ ------------
SOUTH KOREA (0.7%)
<S> <C> <C>
Daewoo Heavy Industries Ltd. (3% Cnv Bds, due 12/31/01) (Capital Goods)......... $ 200,000 $ 270,000
Ssangyong Cement Co. (3% Cnv Bds, due 12/31/05) (Building Materials)............ 2,800,000 3,500,000
Ssangyong Oil Refinery Co. (3.75% Cnv Bds, due 12/31/08) (Oil - Production)..... 2,000,000 2,165,000
------------
5,935,000
------------
TAIWAN (0.2%)
Pacific Electric Wire & Cable (3.75% Cnv Bds, due 10/31/01) (Electrical
Equipment)..................................................................... 300,000 391,500
Yieh Loong Co. (2% Cnv. Bds., due 12/31/00) (Metals & Mining)................... 2,500,000 1,551,660
------------
1,943,160
------------
THAILAND (0.6%)
Land & Houses Co. (5% Cnv Bds, due 04/29/03) (Building Materials)............... 1,450,000 1,848,750
Siam Commercial Bank Public Co. Ltd. (3.25% Cnv Bds, due 1/27/04) (Banking)..... 2,500,000 3,109,375
------------
4,958,125
------------
Total Convertible Bonds (cost $16,766,899).................................... 15,101,108
------------
<CAPTION>
Shares
------------
<S> <C> <C>
RIGHTS & WARRANTS (0.1%)*
INDIA (0.0%)1
Shriram Industrial Enterprises (Expire 04/01/96; for GDR 144A)
(Multi-Industry)............................................................... 86,000 860
------------
MALAYSIA (0.1%)
UMW Holdings Berhad (Expire 01/26/00) (Capital Goods)........................... 107,200 107,469
------------
PORTUGAL (0.0%)1
Banco Commercial Portuguese SA (Expire 5/10/96) (Banking)....................... 135,499 51,719
------------
THAILAND (0.0%)1
Bumrungrad Hospital Public Co. Ltd. (Expire 6/14/96) (Health & Personal Care)... 246,525 53,700
------------
Total Rights & Warrants (cost of $323,359).................................... 213,748
------------
</TABLE>
The Accompanying Notes are an Integral Part of the Financial Statements.
25
<PAGE>
THE EMERGING MARKETS EQUITY PORTFOLIO
SCHEDULE OF INVESTMENTS (UNAUDITED) (CONTINUED)
APRIL 30, 1996
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
DESCRIPTION
- ---------------------------------------------------------------------------------- Units Value
------------ ------------
UNIT TRUSTS (1.5%)
<S> <C> <C>
CHILE (0.1%)
Chile Fund Inc.................................................................. 33,000 $ 808,500
------------
GHANA (0.1%)
Blakeney Investors*............................................................. 100,000 976,000
------------
RUSSIA (1.1%)
New Century Holdings Ltd. (Partnership III; Group B)+*.......................... 1,800 3,065,400
New Century Holdings Ltd. (Partnership IV; Group I)+*........................... 2,000 2,320,000
New Century Holdings Ltd. (Partnership V; Group II)+*........................... 3,800 3,610,000
------------
8,995,400
------------
TAIWAN (0.2%)
R.O.C. Taiwan Fund.............................................................. 140,000 1,505,000
------------
Total Unit Trusts (cost $10,649,500).......................................... 12,284,900
------------
<CAPTION>
Principal
Amount
------------
<S> <C> <C>
REPURCHASE AGREEMENT (3.0%)
State Street Bank and Trust 4.75% dated 4/30/96 due 5/1/96, proceeds $24,791,271
(collateralized by $19,715,000 U.S. Treasury Bond, 11.125% due 8/15/03, valued
at $25,284,488) (cost $24,788,000).............................................. $ 24,788,000 24,788,000
------------
TOTAL INVESTMENTS (COST $777,090,088) (99.2%)................................... 812,554,031
OTHER ASSETS NET OF LIABILITIES (0.8%).......................................... 6,177,090
------------
TOTAL NET ASSETS (100.0%)....................................................... $818,731,121
------------
------------
</TABLE>
- ------------------------------
Note: For Federal Income Tax purposes, the cost of securities owned at April 30,
1996 was substantially the same as the cost of securities for financial
statement purposes.
+ - Restricted securities. See Note 4.
* - Non-income producing securities.
1 - Less than .01%
ADR - American Depositary Receipt.
ADS - American Depositary Shares.
Spon. ADR - Sponsored ADR.
EDR - European Depositary Receipt.
GDR - Global Depositary Receipt.
GDS - Global Depositary Shares.
Spon. GDR - Sponsored GDR.
RDC - Russian Depositary Certificate.
RFD - Ranked for Dividend.
144A - Securities restricted for resale to Qualified Institutional Buyers.
The Accompanying Notes are an Integral Part of the Financial Statements.
26
<PAGE>
THE EMERGING MARKETS EQUITY PORTFOLIO
SCHEDULE OF INVESTMENTS (UNAUDITED) (CONTINUED)
APRIL 30, 1996
- --------------------------------------------------------------------------------
INDUSTRY DIVERSIFICATION
<TABLE>
<CAPTION>
PERCENT OF
TOTAL INVESTMENTS
---------------------
<S> <C>
Food, Beverages & Tobacco...................................................................... 12.82%
Utilities...................................................................................... 11.08%
Metals & Mining................................................................................ 10.51%
Banking........................................................................................ 9.34%
Building Materials............................................................................. 7.14%
Multi-Industry................................................................................. 6.86%
Telecommunications............................................................................. 5.87%
Oil - Production............................................................................... 5.11%
Chemicals...................................................................................... 4.77%
Entertainment, Leisure & Media................................................................. 3.69%
Automotive..................................................................................... 2.84%
Retail......................................................................................... 2.51%
Transport & Services........................................................................... 2.16%
Financial Services............................................................................. 2.07%
Oil - Services................................................................................. 2.01%
Capital Goods.................................................................................. 1.92%
Real Estate.................................................................................... 1.73%
Forest Products & Paper........................................................................ 1.64%
Electronics.................................................................................... 1.22%
Consumer Goods & Services...................................................................... 1.00%
Pharmaceuticals................................................................................ 0.77%
Insurance...................................................................................... 0.59%
Textiles & Apparel............................................................................. 0.57%
Natural Gas.................................................................................... 0.46%
Electric....................................................................................... 0.29%
Health & Personal Care......................................................................... 0.29%
Agriculture.................................................................................... 0.25%
Construction & Housing......................................................................... 0.20%
Health Services................................................................................ 0.17%
Packaging & Containers......................................................................... 0.12%
-----
100.0%
-----
-----
</TABLE>
The Accompanying Notes are an Integral Part of the Financial Statements.
27
<PAGE>
THE EMERGING MARKETS EQUITY PORTFOLIO
STATEMENT OF ASSETS AND LIABILITIES (UNAUDITED)
APRIL 30, 1996
- --------------------------------------------------------------------------------
<TABLE>
<S> <C>
ASSETS
Investments, at Value (Cost $752,302,088) $787,766,031
Repurchase Agreement (Cost $24,788,000) 24,788,000
Foreign Currency, at Value (Cost $5,718,079) 5,674,005
Unrealized Appreciation on Open Spot Foreign Currency Contracts 199
Receivable for Investments Sold 3,312,113
Dividends and Interest Receivable 2,648,471
Receivable for Foreign Currency Sold 436,011
Deferred Organization Expense 3,628
Prepaid Expenses 7,343
------------
Total Assets 824,635,801
------------
LIABILITIES
Payable for Investments Purchased 4,316,925
Advisory Fee Payable 762,733
Payable for Foreign Currency Purchased 436,011
Custody Fee Payable 253,852
Professional Fees Payable 55,688
Payable to Custodian 34,602
Administrative Services Fee Payable 16,183
Administration Fee Payable 8,567
Fund Services Fee Payable 2,893
Accrued Expenses & Other Liabilities 17,226
------------
Total Liabilities 5,904,680
------------
NET ASSETS
Applicable to Investors' Beneficial Interests $818,731,121
------------
------------
</TABLE>
The Accompanying Notes are an Integral Part of the Financial Statements.
28
<PAGE>
THE EMERGING MARKETS EQUITY PORTFOLIO
STATEMENT OF OPERATIONS (UNAUDITED)
FOR THE SIX MONTHS ENDED APRIL 30, 1995
- --------------------------------------------------------------------------------
<TABLE>
<S> <C> <C>
INVESTMENT INCOME
Dividends (Net of $743,757 Foreign Withholding Taxes) $ 6,821,147
Interest 1,720,285
-----------
Investment Income 8,541,432
EXPENSES
Advisory Fee $ 3,608,169
Custodian Fees and Expenses 603,009
Administrative Services Fee 64,035
Professional Fees 47,895
Administration Fee 39,661
Fund Services Fee 19,928
Trustees' Fees and Expenses 6,985
Insurance Expense 2,950
Amortization of Organization Expense 639
Miscellaneous 7,243
-----------
Total Expenses (4,400,514)
-----------
NET INVESTMENT INCOME 4,140,918
NET REALIZED GAIN (LOSS) ON
Investment Transactions 3,011,069
Foreign Currency Transactions (5,054,319)
-----------
Net Realized Loss (2,043,250)
NET CHANGE IN UNREALIZED APPRECIATION OF
Investments 83,153,256
Foreign Currency Contracts and Translations 142,123
-----------
Net Change in Unrealized Appreciation 83,295,379
-----------
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS $85,393,047
-----------
-----------
</TABLE>
The Accompanying Notes are an Integral Part of the Financial Statements.
29
<PAGE>
THE EMERGING MARKETS EQUITY PORTFOLIO
STATEMENT OF CHANGES IN NET ASSETS
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
FOR THE SIX
MONTHS ENDED FOR THE YEAR
APRIL 30, 1996 ENDED
(UNAUDITED) OCTOBER 31, 1995
--------------- -------------------
<S> <C> <C>
INCREASE (DECREASE) IN NET ASSETS
FROM OPERATIONS
Net Investment Income $ 4,140,918 $ 6,090,029
Net Realized Loss on Investments and Foreign Currency Transactions (2,043,250) (28,967,303)
Net Change in Unrealized Appreciation (Depreciation) of Investments and
Foreign Currency Translations 83,295,379 (102,424,260)
--------------- -------------------
Net Increase (Decrease) in Net Assets Resulting from Operations 85,393,047 (125,301,534)
--------------- -------------------
TRANSACTIONS IN INVESTORS' BENEFICIAL INTEREST
Contributions 264,400,172 350,949,115
Withdrawals (150,549,287) (153,817,752)
--------------- -------------------
Net Increase from Investors' Transactions 113,850,885 197,131,363
--------------- -------------------
Total Increase in Net Assets 199,243,932 71,829,829
NET ASSETS
Beginning of Period 619,487,189 547,657,360
--------------- -------------------
End of Period $ 818,731,121 $ 619,487,189
--------------- -------------------
--------------- -------------------
</TABLE>
- --------------------------------------------------------------------------------
SUPPLEMENTARY DATA:
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
FOR THE PERIOD
FOR THE SIX NOVEMBER 15, 1993
MONTHS ENDED FOR THE YEAR (COMMENCEMENT OF
APRIL 30, 1996 ENDED OPERATIONS) THROUGH
(UNAUDITED) OCTOBER 31, 1995 OCTOBER 31, 1994
---------------- ----------------- ---------------------
<S> <C> <C> <C>
RATIO TO AVERAGE NET ASSETS
Expenses 1.22%(a) 1.31% 1.36%(a)
Net Investment Income 1.28%(a) 1.07% 0.66%(a)
Portfolio Turnover 16.13% 41.31% 27.48%
</TABLE>
- ------------------------
(a) Annualized.
The Accompanying Notes are an Integral Part of the Financial Statements.
30
<PAGE>
THE EMERGING MARKETS EQUITY PORTFOLIO
NOTES TO FINANCIAL STATEMENTS (UNAUDITED)
APRIL 30, 1996
- --------------------------------------------------------------------------------
1. ORGANIZATION AND SIGNIFICANT ACCOUNTING POLICIES
The Emerging Markets Equity Portfolio (the "Portfolio") is registered under the
Investment Company Act of 1940, as amended, (the "Act") as a no-load,
diversified, open-end management investment company which was organized as a
trust under the laws of the State of New York on June 16, 1993. The Portfolio
commenced operations on November 15, 1993 and received a contribution of certain
assets and liabilities, including securities, with a value of $223,722,513 on
that date from the JPM Emerging Markets Equity Fund, Ltd. in exchange for a
beneficial interest in the Portfolio. The Portfolio's investment objective is to
provide a high total return from a portfolio of equity securities of companies
in emerging markets. The Declaration of Trust permits the Trustees to issue an
unlimited number of beneficial interests in the Portfolio.
The preparation of financial statements prepared in accordance with generally
accepted accounting principles requires management to make estimates and
assumptions that affect the reported amounts and disclosures. Actual amounts
could differ from those estimates. The following is a summary of the significant
accounting policies of the Portfolio:
a)The value of each security for which readily available market quotations
exists is based on a decision as to the broadest and most representative
market for such security. The value of such security will be based either
on the last sale price on a national securities exchange, or, in the
absence of recorded sales, at the readily available closing bid price on
such exchanges, or at the quoted bid price in the over-the-counter market.
Securities listed on a foreign exchange are valued at the last quoted sale
price available before the time when net assets are valued. Unlisted
securities are valued at the average of the quoted bid and asked prices in
the over-the-counter market. Securities or other assets for which market
quotations are not readily available are valued at fair value in
accordance with procedures established by the Portfolio's Trustees. Such
procedures may include the use of independent pricing services, which use
prices based upon yields or prices of securities of comparable quality,
coupon, maturity and type; indications as to values from dealers;
operating data and general market conditions. All portfolio securities
with a remaining maturity of less than 60 days are valued by the amortized
cost method.
Trading in securities on most foreign exchanges and over-the-counter
markets is normally completed before the close of the domestic market and
may also take place on days on which the domestic market is closed. If
events materially affecting the value of foreign securities occur between
the time when the exchange on which they are traded closes and the time
when the Portfolio's net assets are calculated, such securities will be
valued at fair value in accordance with procedures established by and
under the general supervision of the Portfolio's Trustees.
Investments in emerging markets may involve certain considerations and
risks not typically associated with investments in the Unites States.
Future economic and political developments in emerging market countries
could adversely affect the liquidity or value, or both, of such securities
in which the Portfolio is invested. The ability of the issuers of the debt
securities held by the Portfolio to meet their obligations may be affected
by economic and political developments in a specific industry or region.
b)The books and records of the Portfolio are maintained in U.S. dollars. The
market values of investment securities, other assets and liabilities and
foreign currency contracts are translated at the prevailing exchange rates
at the end of the period. Purchases, sales, income and expense are
translated at the exchange rate prevailing on the respective dates of such
transactions. Translation
31
<PAGE>
THE EMERGING MARKETS EQUITY PORTFOLIO
NOTES TO FINANCIAL STATEMENTS (UNAUDITED) (CONTINUED)
APRIL 30, 1996
- --------------------------------------------------------------------------------
gains and losses resulting from changes in exchange rates during the
reporting period and gains and losses realized upon settlement of foreign
currency transactions are reported in the Statement of Operations.
Since the net assets of the Portfolio are presented at the exchange rates
and market values prevailing at the end of the period, the Portfolio does
not isolate the portion of the results of operations arising as a result
of changes in foreign exchange rates from the fluctuations arising from
changes in the market prices of securities during the period.
c)Securities transactions are recorded on a trade date basis. Dividend
income is recorded on the ex-dividend date or at the time that the
relevant ex-dividend date and amount becomes known. Interest income, which
includes the amortization of premiums and discounts, if any, is recorded
on an accrual basis. For financial and tax reporting purposes, realized
gains and losses are determined on the basis of specific lot
identification.
d)The Portfolio may enter into forward and spot foreign currency contracts
to protect securities and related receivables against fluctuations in
future foreign currency rates. A forward contract is an agreement to buy
or sell currencies of different countries on a specified future date at a
specified rate. Risks associated with such contracts include the movement
in the value of the foreign currency relative to the U.S. Dollar and the
ability of the counterparty to perform.
The market value of the contract will fluctuate with changes in currency
exchange rates. Contracts are valued daily based on procedures established
by and under the general supervision of the Portfolio's Trustees and the
change in the market value is recorded by the Portfolio as unrealized
appreciation or depreciation of forward and spot foreign currency contract
translations. At April 30, 1996 the Portfolio had open spot foreign
currency contracts as follows:
SUMMARY OF OPEN CONTRACTS
<TABLE>
<CAPTION>
U.S. DOLLAR NET UNREALIZED
VALUE AT APPRECIATION
FOREIGN CURRENCY SALE CONTRACTS PROCEEDS 4/30/96 (DEPRECIATION)
- -------------------------------------------------------------------- --------- ----------- -----------------
<S> <C> <C> <C>
Portuguese Escudo, 21,030,320, expiring 5/3/96 $ 134,353 $ 133,785 $ 568
<CAPTION>
FOREIGN CURRENCY PURCHASE CONTRACTS COST
- -------------------------------------------------------------------- ---------
<S> <C> <C> <C>
Israeli Shekel, 495,527, expiring 5/1/96 155,386 155,134 (252)
Malaysian Ringgit, 358,289, expiring 5/3/96 143,786 143,676 (110)
South Korean Won, 1,929,600 expiring 5/3/96 2,486 2,479 (7)
-----
Net Unrealized Appreciation on Foreign
Currency Contracts $ 199
-----
-----
</TABLE>
e)The Portfolio intends to be treated as a partnership for federal income
tax purposes. As such, each investor in the Portfolio will be taxable on
its share of the Portfolio's ordinary income and capital gains. It is
intended that the Portfolio's assets will be managed in such a way that an
investor in the Portfolio will be able to satisfy the requirements of
Subchapter M of the Internal Revenue Code.
f)The Portfolio incurred organization expenses in the amount of $7,629.
These costs were deferred and are being amortized on a straight-line basis
over a five year period from the commencement of operations.
32
<PAGE>
THE EMERGING MARKETS EQUITY PORTFOLIO
NOTES TO FINANCIAL STATEMENTS (UNAUDITED) (CONTINUED)
APRIL 30, 1996
- --------------------------------------------------------------------------------
g)The Portfolio's custodian takes possession of the collateral pledged for
investments in repurchase agreements on behalf of the Portfolio. It is the
policy of the Portfolio to value the underlying collateral daily on a
mark-to-market basis to determine that the value, including accrued
interest, is at least equal to the repurchase price plus accrued interest.
In the event of default of the obligation to repurchase, the Portfolio 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.
2. TRANSACTIONS WITH AFFILIATES
a)The Portfolio has an investment advisory agreement with Morgan Guaranty
Trust Company of New York ("Morgan"). Under the terms of the investment
advisory agreement, the Portfolio pays Morgan at an annual rate of 1.00%
of the Portfolio's average daily net assets. For the six months ended
April 30, 1996, such fees amounted to $3,608,169.
b)The Portfolio has retained Signature Broker-Dealer Services, Inc.
("Signature") to serve as administrator and exclusive placement agent.
Signature provides administrative services necessary for the operations of
the Portfolio, furnishes office space and facilities required for
conducting the business of the Portfolio and pays the compensation of the
Portfolio's officers affiliated with Signature. The agreement provided for
a fee to be paid to Signature at an annual fee rate determined by the
following schedule: 0.01% of the first $1 billion of the aggregate average
daily net assets of the Portfolio and the other portfolios subject to the
Administration Agreement, 0.008% of the next $2 billion of such net
assets, 0.006% of the next $2 billion of such net assets, and 0.004% of
such net assets in excess of $5 billion. The daily equivalent of the fee
rate is applied each day to the net assets of the Portfolio. For the
period November 1, 1995 through December 28, 1995, such fees amounted to
$6,052.
Effective December 29, 1995, the Administration Agreement was amended such
that the fee charged would be equal to the Portfolio's proportionate share
of a complex-wide fee based on the following annual schedule: 0.03% on the
first $7 billion of the aggregate average daily net assets of the
Portfolio and the other portfolios subject to this agreement (the "Master
Portfolios") and 0.01% on the aggregate average daily net assets of the
Master Portfolios in excess of $7 billion. The portion of this charge
payable by the Portfolio is determined by the proportionate share its net
assets bear to the total net assets of The Pierpont Funds, The JPM
Institutional Funds, The JPM Advisor Funds and the Master Portfolios. For
the period December 29, 1995 through April 30, 1996, such fees amounted to
$33,609.
c)Until August 31, 1995, the Portfolio had a Financial and Fund Accounting
Services Agreement ("Services Agreement") with Morgan under which Morgan
would receive a fee, based on the percentage described below, for
overseeing certain aspects of the administration and operation of the
Portfolio and was also designed to provide an expense limit for certain
expenses of the Portfolio. This fee was calculated exclusive of the
advisory fee, custody expenses, fund services fee, amortization of
organization expenses and brokerage costs at 0.03% of the Portfolio's
average daily net assets. From September 1, 1995 until December 28, 1995,
an interim agreement between the Portfolio and Morgan provided for the
continuation of the oversight functions that were outlined under the
Services Agreement and that Morgan should bear all of its expenses
incurred in connection with these services.
33
<PAGE>
THE EMERGING MARKETS EQUITY PORTFOLIO
NOTES TO FINANCIAL STATEMENTS (UNAUDITED) (CONTINUED)
APRIL 30, 1996
- --------------------------------------------------------------------------------
Effective December 29, 1995, the Portfolio entered into an Administrative
Services Agreement (the "Agreement") with Morgan under which Morgan is
responsible for overseeing certain aspects of the administration and
operation of the Portfolio. Under the Agreement, the Portfolio has agreed
to pay Morgan a fee equal to its proportionate share of an annual
complex-wide charge. This charge is calculated daily based on the
aggregate net assets of the Master Portfolios in accordance with the
following annual schedule: 0.06% on the first $7 billion of the Master
Portfolios' aggregate average daily net assets and 0.03% of the aggregate
average daily net assets in excess of $7 billion. The portion of this
charge payable by the Portfolio is determined by the proportionate share
that the Portfolio's net assets bear to the net assets of the Master
Portfolios and other investors in the Master Portfolios for which Morgan
provides similar services. For the period December 29, 1995 through April
30, 1996, such fees amounted to $64,035.
d)The Portfolio has a Fund Services Agreement with Pierpont Group, Inc.
("Group") to assist the Trustees in exercising their overall supervisory
responsibilities for the Portfolio's affairs. The Trustees of the
Portfolio represent all the existing shareholders of Group. The
Portfolio's allocated portion of Group's costs in performing its services
amounted to $19,928 for the six months ended April 30, 1996.
e)An aggregate annual fee of $65,000 is paid to each Trustee for serving as
a Trustee of The Pierpont Funds, The JPM Institutional Funds and the
Master Portfolios. The Trustees' Fees and Expenses shown in the financial
statements represent the Portfolio's allocated portion of the total fees
and expenses. The Portfolio's Chairman and Chief Executive Officer also
serves as Chairman of Group and received compensation and employee
benefits from Group in his role as Group's Chairman. The allocated portion
of such compensation and benefits included in the Fund Services Fee shown
in the financial statements was $2,600.
3. INVESTMENT TRANSACTIONS:
Investment transactions (excluding short-term investments) for the six
months ended April 30, 1996 were as follows:
<TABLE>
<CAPTION>
COST OF PROCEEDS FROM
PURCHASES SALES
- -------------- --------------
<S> <C>
$ 231,805,864 $ 108,894,720
- -------------- --------------
</TABLE>
4. RESTRICTED SECURITIES:
<TABLE>
<CAPTION>
SHARES DATE ACQUIRED U.S. $ COST
----------- --------------- ------------
<S> <C> <C> <C>
New Century Holdings, Ltd.:
Partnership III 1,800 4/11/94 $ 1,800,000
Partnership IV 2,000 6/16/94 $ 2,000,000
Partnership V 3,800 11/9/94 $ 3,800,000
</TABLE>
The securities shown above are restricted as to sale and have been valued at
fair value in accordance with the procedures described in Note 1a. The value
of these securities at April 30, 1996 is $8,995,400 representing 1.1% of net
assets.
34
<PAGE>
<PAGE>
THE JPM ADVISOR INTERNATIONAL EQUITY FUND
STATEMENT OF ASSETS AND LIABILITIES (UNAUDITED)
APRIL 30, 1996
- --------------------------------------------------------------------------------
<TABLE>
<S> <C>
ASSETS
Investment in The Non-U.S. Equity Portfolio ("Portfolio"), at value $ 272,212
Receivable for Expense Reimbursement 47,150
Deferred Organization Expenses 30,652
---------
Total Assets 350,014
---------
LIABILITIES
Accrued Organization Expenses 33,596
Registration Fee Payable 17,846
Trustees' Fee Payable 10,195
Accrued Expenses 18,765
---------
Total Liabilities 80,402
---------
NET ASSETS
Applicable to 22,294 Shares of Beneficial Interest Outstanding $ 269,612
(par value $0.001, unlimited shares authorized)
---------
---------
Net Asset Value, Offering and Redemption Price Per Share $ 12.09
---------
---------
ANALYSIS OF NET ASSETS
Paid-In Capital $ 253,363
Undistributed Net Investment Income 542
Accumulated Net Realized Gain on Investment and Foreign Currency Transactions 4,540
Net Unrealized Depreciation of Investment and Foreign Currency Translations 11,167
---------
Net Assets $ 269,612
---------
---------
</TABLE>
The Accompanying Notes are an Integral Part of the Financial Statements.
7
<PAGE>
THE JPM ADVISOR INTERNATIONAL EQUITY FUND
STATEMENT OF OPERATIONS (UNAUDITED)
FOR THE PERIOD NOVEMBER 22, 1995 (COMMENCEMENT OF OPERATIONS) THROUGH APRIL 30,
1996
- --------------------------------------------------------------------------------
<TABLE>
<S> <C> <C>
INVESTMENT INCOME FROM PORTFOLIO
$ 1,565
Allocated Dividend Income (Net of Foreign Withholding Tax of $238)
231
Allocated Interest Income (Net of Foreign Withholding Tax of $6)
(606)
Allocated Portfolio Expenses
---------
1,190
Net Investment Income Allocated from Portfolio
FUND EXPENSES
Registration Fees $ 18,235
Trustees' Fees and Expenses 10,195
Transfer Agent Fees 6,456
Printing 4,665
Insurance 3,946
Professional Fees 3,070
Amortization of Organization Expense 2,944
Administration Fee 9
Miscellaneous 640
---------
Total Fund Expenses 50,160
Less: Reimbursement of Expenses (49,512)
---------
(648)
NET FUND EXPENSES
---------
542
NET INVESTMENT INCOME
3,024
NET REALIZED GAIN ON INVESTMENT AND FOREIGN CURRENCY TRANSACTIONS
ALLOCATED FROM PORTFOLIO
12,685
NET CHANGE IN UNREALIZED APPRECIATION OF INVESTMENT AND FOREIGN
CURRENCY TRANSLATIONS ALLOCATED FROM PORTFOLIO
---------
$ 16,251
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS
---------
---------
</TABLE>
The Accompanying Notes are an Integral Part of the Financial Statements.
8
<PAGE>
THE JPM ADVISOR INTERNATIONAL EQUITY FUND
STATEMENT OF CHANGES IN NET ASSETS
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
FOR THE PERIOD
NOVEMBER 22, 1995
(COMMENCEMENT OF
OPERATIONS) THROUGH
APRIL 30, 1996
(UNAUDITED)
-------------------
<S> <C>
INCREASE IN NET ASSETS
FROM OPERATIONS
Net Investment Income $ 542
Net Realized Gain on Investment and Foreign Currency Transactions Allocated from Portfolio 3,024
Net Change in Unrealized Appreciation of Investment and Foreign Currency Translations
Allocated from Portfolio 12,685
--------
Net Increase in Net Assets Resulting from Operations 16,251
--------
DISTRIBUTIONS TO SHAREHOLDERS FROM
Net Realized Gain (2)
--------
Total Distributions to Shareholders (2)
TRANSACTIONS IN SHARES OF BENEFICIAL INTEREST
Proceeds from Shares of Beneficial Interest Sold 345,296
Reinvestment of Dividends and Distributions 2
Cost of Shares of Beneficial Interest Redemmed (92,044)
--------
Net Increase from Transactions in Shares of Beneficial Interest 253,254
--------
Total Increase in Net Assets 269,503
NET ASSETS
Beginning of Period 109
--------
End of Period (including undistributed net investment income of $542) $ 269,612
--------
--------
</TABLE>
The Accompanying Notes are an Integral Part of the Financial Statements.
9
<PAGE>
THE JPM ADVISOR INTERNATIONAL EQUITY FUND
FINANCIAL HIGHLIGHTS
- --------------------------------------------------------------------------------
Selected data for a share outstanding throughout the period is as follows:
<TABLE>
<CAPTION>
FOR THE PERIOD
NOVEMBER 22, 1995
(COMMENCEMENT OF
OPERATIONS) THROUGH
APRIL 30, 1996
(UNAUDITED)
--------------------
<S> <C>
NET ASSET VALUE, BEGINNING OF PERIOD $ 10.90
------
INCOME FROM INVESTMENT OPERATIONS
Net Investment Income 0.02
Net Realized and Unrealized Gain on Investment and Foreign Currency 1.17
------
Total from Investment Operations 1.19
------
DISTRIBUTIONS TO SHAREHOLDERS FROM
Net Realized Gain 0.00*
------
NET ASSET VALUE, END OF PERIOD $ 12.09
------
------
Total Return 10.92 %(a)
------
------
RATIOS AND SUPPLEMENTAL DATA (B)
Net Assets at end of Period (in thousands) $ 270
Ratios to Average Net Assets
Expenses 1.65 %
Net Investment Income 0.71 %
Decrease Reflected in Expense Ratio due to Expense Reimbursement 0.85 %(c)
</TABLE>
- ------------------------
(a) Not Annualized.
(b) Annualized.
(c) After consideration of certain state limitations.
* Less than $0.01
The Accompanying Notes are an Integral Part of the Financial Statements.
10
<PAGE>
THE JPM ADVISOR INTERNATIONAL EQUITY FUND
NOTES TO FINANCIAL STATEMENTS (UNAUDITED)
APRIL 30, 1996
- --------------------------------------------------------------------------------
1. ORGANIZATION AND SIGNIFICANT ACCOUNTING POLICIES
The JPM Advisor International Equity Fund (the "Fund") is a separate series of
The JPM Advisor Funds, a Massachusetts business trust (the "Trust"). The Trust
is registered under the Investment Company Act of 1940, as amended, as a
no-load, open-end management investment company. The Fund commenced operations
on November 22, 1995.
The Fund invests all of its investable assets in The Non-U.S. Equity Portfolio
(the "Portfolio"), a no-load diversified open-end management investment company
having the same investment objective as the Fund. The value of such investment
reflects the Fund's proportionate interest in the net assets of the Portfolio
(less than 1% at April 30, 1996). The performance of the Fund is directly
affected by the performance of the Portfolio. The financial statements of the
Portfolio, including the schedule of investments, are included elsewhere in this
report and should be read in conjunction with the Fund's financial statements.
The preparation of financial statements prepared in accordance with generally
accepted accounting principals requires management to make estimates and
assumptions that affect the reported amounts and disclosures. Actual amounts
could differ from those estimates. The following is a summary of the significant
accounting policies of the Fund:
a)Valuation of securities by the Portfolio is discussed in Note 1 of the
Portfolio's Notes to Financial Statements which are included elsewhere in
this report.
b)The Fund records its share of net investment income, realized and
unrealized gain and loss and adjusts its investment in the Portfolio each
day. All the net investment income and realized and unrealized gain and
loss of the Portfolio is allocated pro rata among the Fund and other
investors in the Portfolio at the time of such determination.
c)Distributions to shareholders of net investment income and net realized
capital gains, if any, are declared and paid annually.
d)The Fund incurred organization expenses in the amount of $33,596. These
costs were deferred and are being amortized on a straight-line basis over
a five-year period from the commencement of operations.
e)Each series of the Trust is treated as a separate entity for federal
income tax purposes. The Fund intends to comply with the provisions of the
Internal Revenue Code of 1986, as amended, applicable to regulated
investment companies and to distribute substantially all of its income,
including net realized capital gains, if any, within the prescribed time
periods. Accordingly, no provision for federal income or excise tax is
necessary.
f)Expenses incurred by the Trust with respect to any two or more funds in
the Trust are allocated in proportion to the net assets of each fund in
the Trust, except where allocations of direct expenses to each fund can
otherwise be made fairly. Expenses directly attributable to a fund are
charged to that fund.
11
<PAGE>
THE JPM ADVISOR INTERNATIONAL EQUITY FUND
NOTES TO FINANCIAL STATEMENTS (UNAUDITED) (CONTINUED)
APRIL 30, 1996
- --------------------------------------------------------------------------------
2. TRANSACTIONS WITH AFFILIATES
a)The Trust has retained Signature Broker-Dealer Services, Inc.
("Signature") to serve as administrator and distributor. Signature
provides administrative services necessary for the operations of the Fund,
furnishes office space and facilities required for conducting the business
of the Fund and pays the compensation of the Fund's officers affiliated
with Signature. The agreement provided for a fee to be paid to Signature
at an annual rate determined by the following schedule: 0.04% of the first
$1 billion of the aggregate average daily net assets of the Trust, as well
as two other affiliated fund families for which Signature acts as
administrator, 0.032% of the next $2 billion of such net assets, 0.024% of
the next $2 billion of such net assets, and 0.016% of such net assets in
excess of $5 billion. The daily equivalent of the fee rate is applied
daily to the net assets of the Fund. For the period November 22, 1995
(commencement of operations) through December 28, 1995, there was no fee
for these services.
Effective December 29, 1995, the Administration Agreement was amended such
that the fee charged would be equal to the Fund's proportionate share of a
complex-wide fee based on the following annual schedule: 0.03% on the
first $7 billion of the aggregate average daily net assets of the
Portfolio and the other portfolios (the "Master Portfolios") in which
series of the Trust, The JPM Institutional Funds, or The Pierpont Funds
invest and 0.01% on the aggregate average daily net assets of the Master
Portfolios in excess of $7 billion. The portion of this charge payable by
the Fund is determined by the proportionate share its net assets bear to
the total net assets of the Trust, The JPM Institutional Funds, The
Pierpont Funds and the Master Portfolios. For the period December 29,
1995, through April 30, 1996, such fees amounted to $9.
b)The Trust, on behalf of the Fund, has a Services Agreement with Morgan
Guaranty Trust Company of New York ("Morgan") under which Morgan would
receive a fee, based on the percentage described below, for overseeing
certain aspects of the administration and operation of the Fund and for
providing shareholder servicing to Fund shareholders. The Services
Agreement is also designed to provide an expense limit for certain
expenses of the Fund. If total expenses of the Fund, excluding
amortization of organization expenses, exceed the expense limit of 0.76%
of the Fund's average daily net assets, Morgan will reimburse the Fund for
the excess expense amount and receive no fee. Should such expenses be less
than the expense limit, Morgan's fee would be limited to the difference
between such expenses and the fee calculated under the Services Agreement.
For the period November 22, 1995 (commencement of operations) through
April 30, 1996, Morgan has agreed to reimburse the Fund $46,638 under the
Services Agreement.
In addition to the expenses that Morgan assumes under the Services
Agreement, Morgan has agreed to reimburse the Fund to the extent necessary
to maintain the total operating expenses of the Fund, including the
expenses allocated to the Fund from the Portfolio, at no more than 1.65%
of the average daily net assets of the Fund through December 31, 1996. For
the period from November 22, 1995 (commencement of operations) through
April 30, 1996, Morgan has agreed to reimburse the Fund $2,874 for
expenses under this agreement. Morgan, Charles Schwab & Co. ("Schwab") and
the Trust are parties to separate services and operating agreements (the
"Schwab
12
<PAGE>
THE JPM ADVISOR INTERNATIONAL EQUITY FUND
NOTES TO FINANCIAL STATEMENTS (UNAUDITED) (CONTINUED)
APRIL 30, 1996
- --------------------------------------------------------------------------------
Agreements") whereby Schwab makes Fund shares available to customers of
investment advisors and other financial intermediaries who are Schwab's
clients. In the event the Services Agreement with the Trust is terminated,
the Fund would be responsible for the ongoing payments to Schwab under the
Schwab Agreements.
c)An aggregate annual fee of $16,000 is paid to each Trustee for serving as
a Trustee of The Trust. The Trustees' Fees and Expenses shown in the
financial statements represents the Fund's allocated portion of the total
fees and expenses.
3. TRANSACTIONS IN SHARES OF BENEFICIAL INTEREST
The Declaration of Trust permits the Trustees to issue an unlimited number of
full and fractional shares of beneficial interest of one or more series.
Transactions in shares of beneficial interest of the Fund were as follows:
<TABLE>
<CAPTION>
FOR THE PERIOD NOVEMBER 22, 1995
(COMMENCEMENT OF OPERATIONS)
THROUGH APRIL 30, 1996
---------------------------------
<S> <C>
Shares of beneficial interest sold 30,104
Shares of beneficial interest redeemed (7,820)
-------
Net increase 22,284
-------
-------
</TABLE>
13
<PAGE>
THE JPM ADVISOR INTERNATIONAL EQUITY FUND
STATEMENT OF ASSETS AND LIABILITIES (UNAUDITED)
APRIL 30, 1996
- --------------------------------------------------------------------------------
<TABLE>
<S> <C>
ASSETS
Investment in The Non-U.S. Equity Portfolio ("Portfolio"), at value $ 272,212
Receivable for Expense Reimbursement 47,150
Deferred Organization Expenses 30,652
---------
Total Assets 350,014
---------
LIABILITIES
Accrued Organization Expenses 33,596
Registration Fee Payable 17,846
Trustees' Fee Payable 10,195
Accrued Expenses 18,765
---------
Total Liabilities 80,402
---------
NET ASSETS
Applicable to 22,294 Shares of Beneficial Interest Outstanding $ 269,612
(par value $0.001, unlimited shares authorized)
---------
---------
Net Asset Value, Offering and Redemption Price Per Share $ 12.09
---------
---------
ANALYSIS OF NET ASSETS
Paid-In Capital $ 253,363
Undistributed Net Investment Income 542
Accumulated Net Realized Gain on Investment and Foreign Currency Transactions 4,540
Net Unrealized Depreciation of Investment and Foreign Currency Translations 11,167
---------
Net Assets $ 269,612
---------
---------
</TABLE>
The Accompanying Notes are an Integral Part of the Financial Statements.
7
<PAGE>
THE JPM ADVISOR INTERNATIONAL EQUITY FUND
STATEMENT OF OPERATIONS (UNAUDITED)
FOR THE PERIOD NOVEMBER 22, 1995 (COMMENCEMENT OF OPERATIONS) THROUGH APRIL 30,
1996
- --------------------------------------------------------------------------------
<TABLE>
<S> <C> <C>
INVESTMENT INCOME FROM PORTFOLIO
$ 1,565
Allocated Dividend Income (Net of Foreign Withholding Tax of $238)
231
Allocated Interest Income (Net of Foreign Withholding Tax of $6)
(606)
Allocated Portfolio Expenses
---------
1,190
Net Investment Income Allocated from Portfolio
FUND EXPENSES
Registration Fees $ 18,235
Trustees' Fees and Expenses 10,195
Transfer Agent Fees 6,456
Printing 4,665
Insurance 3,946
Professional Fees 3,070
Amortization of Organization Expense 2,944
Administration Fee 9
Miscellaneous 640
---------
Total Fund Expenses 50,160
Less: Reimbursement of Expenses (49,512)
---------
(648)
NET FUND EXPENSES
---------
542
NET INVESTMENT INCOME
3,024
NET REALIZED GAIN ON INVESTMENT AND FOREIGN CURRENCY TRANSACTIONS
ALLOCATED FROM PORTFOLIO
12,685
NET CHANGE IN UNREALIZED APPRECIATION OF INVESTMENT AND FOREIGN
CURRENCY TRANSLATIONS ALLOCATED FROM PORTFOLIO
---------
$ 16,251
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS
---------
---------
</TABLE>
The Accompanying Notes are an Integral Part of the Financial Statements.
8
<PAGE>
THE JPM ADVISOR INTERNATIONAL EQUITY FUND
STATEMENT OF CHANGES IN NET ASSETS
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
FOR THE PERIOD
NOVEMBER 22, 1995
(COMMENCEMENT OF
OPERATIONS) THROUGH
APRIL 30, 1996
(UNAUDITED)
-------------------
<S> <C>
INCREASE IN NET ASSETS
FROM OPERATIONS
Net Investment Income $ 542
Net Realized Gain on Investment and Foreign Currency Transactions Allocated from Portfolio 3,024
Net Change in Unrealized Appreciation of Investment and Foreign Currency Translations
Allocated from Portfolio 12,685
--------
Net Increase in Net Assets Resulting from Operations 16,251
--------
DISTRIBUTIONS TO SHAREHOLDERS FROM
Net Realized Gain (2)
--------
Total Distributions to Shareholders (2)
TRANSACTIONS IN SHARES OF BENEFICIAL INTEREST
Proceeds from Shares of Beneficial Interest Sold 345,296
Reinvestment of Dividends and Distributions 2
Cost of Shares of Beneficial Interest Redemmed (92,044)
--------
Net Increase from Transactions in Shares of Beneficial Interest 253,254
--------
Total Increase in Net Assets 269,503
NET ASSETS
Beginning of Period 109
--------
End of Period (including undistributed net investment income of $542) $ 269,612
--------
--------
</TABLE>
The Accompanying Notes are an Integral Part of the Financial Statements.
9
<PAGE>
THE JPM ADVISOR INTERNATIONAL EQUITY FUND
FINANCIAL HIGHLIGHTS
- --------------------------------------------------------------------------------
Selected data for a share outstanding throughout the period is as follows:
<TABLE>
<CAPTION>
FOR THE PERIOD
NOVEMBER 22, 1995
(COMMENCEMENT OF
OPERATIONS) THROUGH
APRIL 30, 1996
(UNAUDITED)
--------------------
<S> <C>
NET ASSET VALUE, BEGINNING OF PERIOD $ 10.90
------
INCOME FROM INVESTMENT OPERATIONS
Net Investment Income 0.02
Net Realized and Unrealized Gain on Investment and Foreign Currency 1.17
------
Total from Investment Operations 1.19
------
DISTRIBUTIONS TO SHAREHOLDERS FROM
Net Realized Gain 0.00*
------
NET ASSET VALUE, END OF PERIOD $ 12.09
------
------
Total Return 10.92 %(a)
------
------
RATIOS AND SUPPLEMENTAL DATA (B)
Net Assets at end of Period (in thousands) $ 270
Ratios to Average Net Assets
Expenses 1.65 %
Net Investment Income 0.71 %
Decrease Reflected in Expense Ratio due to Expense Reimbursement 0.85 %(c)
</TABLE>
- ------------------------
(a) Not Annualized.
(b) Annualized.
(c) After consideration of certain state limitations.
* Less than $0.01
The Accompanying Notes are an Integral Part of the Financial Statements.
10
<PAGE>
THE JPM ADVISOR INTERNATIONAL EQUITY FUND
NOTES TO FINANCIAL STATEMENTS (UNAUDITED)
APRIL 30, 1996
- --------------------------------------------------------------------------------
1. ORGANIZATION AND SIGNIFICANT ACCOUNTING POLICIES
The JPM Advisor International Equity Fund (the "Fund") is a separate series of
The JPM Advisor Funds, a Massachusetts business trust (the "Trust"). The Trust
is registered under the Investment Company Act of 1940, as amended, as a
no-load, open-end management investment company. The Fund commenced operations
on November 22, 1995.
The Fund invests all of its investable assets in The Non-U.S. Equity Portfolio
(the "Portfolio"), a no-load diversified open-end management investment company
having the same investment objective as the Fund. The value of such investment
reflects the Fund's proportionate interest in the net assets of the Portfolio
(less than 1% at April 30, 1996). The performance of the Fund is directly
affected by the performance of the Portfolio. The financial statements of the
Portfolio, including the schedule of investments, are included elsewhere in this
report and should be read in conjunction with the Fund's financial statements.
The preparation of financial statements prepared in accordance with generally
accepted accounting principals requires management to make estimates and
assumptions that affect the reported amounts and disclosures. Actual amounts
could differ from those estimates. The following is a summary of the significant
accounting policies of the Fund:
a)Valuation of securities by the Portfolio is discussed in Note 1 of the
Portfolio's Notes to Financial Statements which are included elsewhere in
this report.
b)The Fund records its share of net investment income, realized and
unrealized gain and loss and adjusts its investment in the Portfolio each
day. All the net investment income and realized and unrealized gain and
loss of the Portfolio is allocated pro rata among the Fund and other
investors in the Portfolio at the time of such determination.
c)Distributions to shareholders of net investment income and net realized
capital gains, if any, are declared and paid annually.
d)The Fund incurred organization expenses in the amount of $33,596. These
costs were deferred and are being amortized on a straight-line basis over
a five-year period from the commencement of operations.
e)Each series of the Trust is treated as a separate entity for federal
income tax purposes. The Fund intends to comply with the provisions of the
Internal Revenue Code of 1986, as amended, applicable to regulated
investment companies and to distribute substantially all of its income,
including net realized capital gains, if any, within the prescribed time
periods. Accordingly, no provision for federal income or excise tax is
necessary.
f)Expenses incurred by the Trust with respect to any two or more funds in
the Trust are allocated in proportion to the net assets of each fund in
the Trust, except where allocations of direct expenses to each fund can
otherwise be made fairly. Expenses directly attributable to a fund are
charged to that fund.
11
<PAGE>
THE JPM ADVISOR INTERNATIONAL EQUITY FUND
NOTES TO FINANCIAL STATEMENTS (UNAUDITED) (CONTINUED)
APRIL 30, 1996
- --------------------------------------------------------------------------------
2. TRANSACTIONS WITH AFFILIATES
a)The Trust has retained Signature Broker-Dealer Services, Inc.
("Signature") to serve as administrator and distributor. Signature
provides administrative services necessary for the operations of the Fund,
furnishes office space and facilities required for conducting the business
of the Fund and pays the compensation of the Fund's officers affiliated
with Signature. The agreement provided for a fee to be paid to Signature
at an annual rate determined by the following schedule: 0.04% of the first
$1 billion of the aggregate average daily net assets of the Trust, as well
as two other affiliated fund families for which Signature acts as
administrator, 0.032% of the next $2 billion of such net assets, 0.024% of
the next $2 billion of such net assets, and 0.016% of such net assets in
excess of $5 billion. The daily equivalent of the fee rate is applied
daily to the net assets of the Fund. For the period November 22, 1995
(commencement of operations) through December 28, 1995, there was no fee
for these services.
Effective December 29, 1995, the Administration Agreement was amended such
that the fee charged would be equal to the Fund's proportionate share of a
complex-wide fee based on the following annual schedule: 0.03% on the
first $7 billion of the aggregate average daily net assets of the
Portfolio and the other portfolios (the "Master Portfolios") in which
series of the Trust, The JPM Institutional Funds, or The Pierpont Funds
invest and 0.01% on the aggregate average daily net assets of the Master
Portfolios in excess of $7 billion. The portion of this charge payable by
the Fund is determined by the proportionate share its net assets bear to
the total net assets of the Trust, The JPM Institutional Funds, The
Pierpont Funds and the Master Portfolios. For the period December 29,
1995, through April 30, 1996, such fees amounted to $9.
b)The Trust, on behalf of the Fund, has a Services Agreement with Morgan
Guaranty Trust Company of New York ("Morgan") under which Morgan would
receive a fee, based on the percentage described below, for overseeing
certain aspects of the administration and operation of the Fund and for
providing shareholder servicing to Fund shareholders. The Services
Agreement is also designed to provide an expense limit for certain
expenses of the Fund. If total expenses of the Fund, excluding
amortization of organization expenses, exceed the expense limit of 0.76%
of the Fund's average daily net assets, Morgan will reimburse the Fund for
the excess expense amount and receive no fee. Should such expenses be less
than the expense limit, Morgan's fee would be limited to the difference
between such expenses and the fee calculated under the Services Agreement.
For the period November 22, 1995 (commencement of operations) through
April 30, 1996, Morgan has agreed to reimburse the Fund $46,638 under the
Services Agreement.
In addition to the expenses that Morgan assumes under the Services
Agreement, Morgan has agreed to reimburse the Fund to the extent necessary
to maintain the total operating expenses of the Fund, including the
expenses allocated to the Fund from the Portfolio, at no more than 1.65%
of the average daily net assets of the Fund through December 31, 1996. For
the period from November 22, 1995 (commencement of operations) through
April 30, 1996, Morgan has agreed to reimburse the Fund $2,874 for
expenses under this agreement. Morgan, Charles Schwab & Co. ("Schwab") and
the Trust are parties to separate services and operating agreements (the
"Schwab
12
<PAGE>
THE JPM ADVISOR INTERNATIONAL EQUITY FUND
NOTES TO FINANCIAL STATEMENTS (UNAUDITED) (CONTINUED)
APRIL 30, 1996
- --------------------------------------------------------------------------------
Agreements") whereby Schwab makes Fund shares available to customers of
investment advisors and other financial intermediaries who are Schwab's
clients. In the event the Services Agreement with the Trust is terminated,
the Fund would be responsible for the ongoing payments to Schwab under the
Schwab Agreements.
c)An aggregate annual fee of $16,000 is paid to each Trustee for serving as
a Trustee of The Trust. The Trustees' Fees and Expenses shown in the
financial statements represents the Fund's allocated portion of the total
fees and expenses.
3. TRANSACTIONS IN SHARES OF BENEFICIAL INTEREST
The Declaration of Trust permits the Trustees to issue an unlimited number of
full and fractional shares of beneficial interest of one or more series.
Transactions in shares of beneficial interest of the Fund were as follows:
<TABLE>
<CAPTION>
FOR THE PERIOD NOVEMBER 22, 1995
(COMMENCEMENT OF OPERATIONS)
THROUGH APRIL 30, 1996
---------------------------------
<S> <C>
Shares of beneficial interest sold 30,104
Shares of beneficial interest redeemed (7,820)
-------
Net increase 22,284
-------
-------
</TABLE>
13
<PAGE>
THE NON-U.S. EQUITY PORTFOLIO
SCHEDULE OF INVESTMENTS (UNAUDITED)
APRIL 30, 1996
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
DESCRIPTION SHARES VALUE
- --------------------------------------------------------------------------- ----------- ------------
<S> <C> <C>
COMMON STOCKS (89.2%)
AUSTRALIA (1.6%)
Broken Hill Proprietary Co. Ltd. (Energy Sources)........................ 221,105 $ 3,405,694
CRA Ltd. (Metals, Materials & Paper)..................................... 69,700 1,131,137
CSR Ltd. (Multi-Industry)................................................ 217,000 783,150
National Australia Bank Ltd. (Banking)................................... 211,405 1,898,253
News Corporation Ltd. (Publishing)....................................... 280,630 1,646,060
North Broken Hill Peko Ltd. (Metals, Materials & Paper).................. 211,500 636,915
Rothmans Holdings Ltd. (Beverages & Tobacco)............................. 95,000 461,620
Santos Ltd. (Energy Sources)............................................. 164,000 585,426
Southcorp Holdings Ltd. (Food & Household Products)...................... 651,800 1,773,222
TNT Ltd. (Transportation) (A)............................................ 511,700 679,947
Western Mining Corp. Holdings Ltd. (Metals & Mining)..................... 127,100 927,398
------------
13,928,822
------------
BELGIUM (0.9%)
Arbed NPV (Metal, Materials & Paper) (A)................................. 4,300 468,014
Banque Bruxelles Lambert (Banking)....................................... 2,800 527,766
Electrabel NPV (Utilities)............................................... 4,835 1,083,173
Fortis AG NPV (Insurance)................................................ 5,900 732,024
Generale De Banque SA (Banking).......................................... 4,200 1,479,343
Petrofina SA NPV (Energy Sources)........................................ 3,800 1,122,612
Solvay and Cie Ord NPV (Chemicals)....................................... 2,100 1,237,784
Tractebel Capital NPV (Multi-Industry)................................... 3,200 1,299,740
------------
7,950,456
------------
FRANCE (10.7%)
Air Liquide (Chemicals).................................................. 19,290 3,498,717
Alcatel Alsthom (Electrical & Electronics)............................... 36,893 3,463,309
AXA (Multi-Industry)..................................................... 47,227 2,808,737
Banque Nationale de Paris (Banking)...................................... 38,800 1,617,313
Bouygues (Engineering & Construction).................................... 21,287 2,158,663
Carrefour Supermarkets (Merchandising)................................... 4,440 3,463,062
Castorama Dubois Investissments (Merchandising).......................... 8,630 1,648,611
Cetelem (Financial Services)............................................. 7,700 1,649,428
Chargeurs (Leisure & Tourism)............................................ 3,900 1,035,806
Christian Dior SA (Retail)............................................... 24,175 3,217,338
Compagnie Financiere de Cic Union Europ Certe de Invest (Banking)........ 14,777 1,027,542
Compagnie Financiere de St. Gobain (Glass & Packaging)................... 21,065 2,518,623
Compagnie Generale des Eaux (Utilities).................................. 43,139 4,682,927
Credit Commercial de France (Financial Services)......................... 36,400 1,820,306
Credit Local de France (Financial Services).............................. 15,000 1,182,412
Erid Beghin Say (Insurance).............................................. 7,900 1,286,369
Essilor International (Health & Personal Care)........................... 8,382 2,117,710
Groupe Danone (Food Processing).......................................... 29,419 4,438,027
Havas (Business & Public Services)....................................... 13,000 1,471,472
Lafarge Coppe SA (Building Materials).................................... 19,848 1,268,983
</TABLE>
The Accompanying Notes are an Integral Part of the Financial Statements.
16
<PAGE>
THE NON-U.S. EQUITY PORTFOLIO
SCHEDULE OF INVESTMENTS (UNAUDITED) (CONTINUED)
APRIL 30, 1996
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
DESCRIPTION SHARES VALUE
- --------------------------------------------------------------------------- ----------- ------------
FRANCE (CONTINUED)
<S> <C> <C>
LaGardere Groupe (Leisure & Tourism)..................................... 69,480 $ 1,861,432
Peugeot SA (Automotive).................................................. 12,250 1,708,379
Pinault Printemps Redouto (Building Materials)........................... 7,410 2,245,702
Promodes (Merchandising)................................................. 12,560 3,602,692
Renault SA (Automotive).................................................. 57,820 1,750,081
Rhone Poulenc SA, Class A (Chemicals).................................... 92,804 2,222,795
Roussel Uclaf (Pharmaceuticals).......................................... 4,536 1,067,164
Sanofi (Pharmaceuticals)................................................. 32,780 2,640,317
Schneider (Technology)................................................... 34,300 1,595,371
Seb AG (Food & Household Products)....................................... 5,000 840,234
SEITA (Beverages & Tobacco).............................................. 79,900 3,071,220
SGS -- Thomson Microelectronics N.V. (Electrical & Electronics) (A)...... 30,000 1,427,818
Sidel (Technology)....................................................... 7,200 1,710,601
Sita (Telecommunications)................................................ 4,300 930,245
Societe Generale (Banking)............................................... 18,458 2,139,178
Societe Nationale Elf Aquitaine (Energy Sources)......................... 71,053 5,274,288
Sommer-Allibert (Building Materials)..................................... 2,260 644,326
Synthelabo (Health & Personal Care)...................................... 24,365 1,897,100
Television Francaise (Broadcasting & Publishing)......................... 14,480 1,566,274
Total SA, Class B (Energy Sources)....................................... 74,015 5,013,794
Union Assurance Federal (Insurance)...................................... 17,880 2,168,893
Usinor Sacilor (Metals, Materials & Paper) (A)........................... 97,800 1,510,318
Valeo (Automotive)....................................................... 21,700 1,202,126
------------
94,465,703
------------
GERMANY (8.1%)
Allianz Holdings AG (Insurance).......................................... 2,256 3,869,059
Ava Allgemeine Handels-Der Verbr (Merchandising)......................... 4,790 1,180,695
Bank Gesellschaft Berlin AG (Banking).................................... 4,600 943,385
BASF AG (Chemicals)...................................................... 9,900 2,698,498
Bayer AG (Chemicals)..................................................... 22,505 7,234,966
Beiersdorf AG (Health & Personal Care)................................... 2,613 2,198,061
Bilfinger & Berger Bau AG (Construction & Housing)....................... 6,125 2,314,569
Colonia Konzern AG (Insurance)........................................... 1,545 1,057,860
Continental AG (Industrial Components)................................... 140,570 2,424,537
Daimler-Benz AG (Automobiles)............................................ 5,308 2,902,315
Deutsche Bank AG (Banking) (A)........................................... 89,900 4,301,191
Deutsche Pfandbrief Und Hypotheken Bank (Banking)........................ 65,500 2,229,576
Douglas Holding AG (Retail).............................................. 19,000 628,163
Dresdner Bank AG (Banking)............................................... 114,600 2,878,601
Henkel KGAA (Chemicals).................................................. 5,200 1,990,453
Karstadt AG (Merchandising).............................................. 600 223,721
Lufthansa AG (Transportation)............................................ 10,670 1,689,366
Man AG (Machinery & Engineering)......................................... 5,445 1,453,283
Mannesmann AG (Machinery & Engineering).................................. 4,385 1,495,484
Munchener Ruckversicherungs (Insurance).................................. 2,792 5,061,401
Rheinisch Westfalisches Elekt AG (Utilities)............................. 55,000 2,137,566
SAP AG (Computer Software)............................................... 3,300 427,155
</TABLE>
The Accompanying Notes are an Integral Part of the Financial Statements.
17
<PAGE>
THE NON-U.S. EQUITY PORTFOLIO
SCHEDULE OF INVESTMENTS (UNAUDITED) (CONTINUED)
APRIL 30, 1996
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
DESCRIPTION SHARES VALUE
- --------------------------------------------------------------------------- ----------- ------------
GERMANY (CONTINUED)
<S> <C> <C>
Siemens AG (Electrical & Electronics).................................... 14,865 $ 8,125,965
Thyssen AG (Metals, Materials & Paper)................................... 14,400 2,605,770
Veba AG (Energy Sources)................................................. 81,950 4,066,719
Volkswagen AG (Automotive)............................................... 14,780 5,093,660
------------
71,232,019
------------
HONG KONG (2.8%)
Cheung Kong Holdings (Building & Contractors)............................ 218,000 1,557,095
Henderson Land Development Co. (Building & Contractors).................. 600,000 4,304,974
Hong Kong Electric Holdings Ltd. (Utilities)............................. 703,500 2,237,306
Hong Kong Telecommunications Ltd. (Telecommunications)................... 1,583,200 3,018,937
HSBC Holdings PLC (Banking).............................................. 213,200 3,183,431
Hutchison Whampoa Ltd. (Multi-Industry).................................. 353,000 2,190,495
New World Development Co. Ltd. (Real Estate)............................. 110,000 493,456
Sing Tao Holdings (Broadcasting & Publishing)............................ 1,218,000 720,385
Sun Hung Kai Properties Ltd. (Real Estate)............................... 186,000 1,773,378
Swire Pacific Ltd. (Transportation)...................................... 387,500 3,306,297
Television Broadcasts Ltd. (Broadcasting & Publishing)................... 452,000 1,811,450
Tingyi Cayman Island Holdings (Food Processing) (A)...................... 1,310,000 364,113
------------
24,961,317
------------
IRELAND (0.3%)
Allied Irish Banks PLC (Banking)......................................... 53,000 275,581
Bank of Ireland (Banking)................................................ 150,000 1,080,282
CRH (Building & Contractors)............................................. 51,000 457,537
Irish Life (Insurance)................................................... 140,000 543,245
Smurfit (Jefferson) Group (Metals, Material & Paper)..................... 235,000 632,842
------------
2,989,487
------------
ITALY (0.8%)
Assicurazioni Generali SPA (Insurance)................................... 86,000 2,140,981
Ente Nazionale Idrocarburi SPA (Energy Sources) (A)...................... 136,00 586,745
Fiat SPA (Automotive) (A)................................................ 483,000 1,643,894
Istituto Mobiliare Italiano (Banking) (A)................................ 172,00 1,363,192
Telekom Italia SPA (Telecommunications).................................. 669,00 1,361,892
------------
7,096,704
------------
JAPAN (38.3%)
Achilles Corp. (Tire and Rubber)......................................... 170,000 766,003
Aichi Corp. (Machinery & Engineering).................................... 90,000 1,022,420
Alps Electric Co. Ltd. (Technology)...................................... 105,000 1,232,918
Asahi Bank Ltd. (Banking)................................................ 581,000 7,487,721
Asahi Glass Co. Ltd. (Metals, Materials & Paper)......................... 130,000 1,576,111
Asatsu Inc. (Commerical Services)........................................ 25,000 1,097,836
Bank of Kyoto (Banking).................................................. 102,000 688,429
</TABLE>
The Accompanying Notes are an Integral Part of the Financial Statements.
18
<PAGE>
THE NON-U.S. EQUITY PORTFOLIO
SCHEDULE OF INVESTMENTS (UNAUDITED) (CONTINUED)
APRIL 30, 1996
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
DESCRIPTION SHARES VALUE
- --------------------------------------------------------------------------- ----------- ------------
JAPAN (CONTINUED)
<S> <C> <C>
Bridgestone Corp. (Metals, Material & Paper)............................. 45,000 $ 833,401
Canon Sales Co. Ltd. (Transport & Trade Services)........................ 85,000 2,377,532
Chugai Pharmaceutical Co. (Health & Personal Care)....................... 218,000 2,122,738
Chuo Trust & Banking Co. (Banking)....................................... 200,000 2,004,745
Cosmo Oil Company Ltd. (Energy Sources).................................. 600,000 3,923,572
Daido Steel Co. (Metals, Materials & Paper).............................. 500,000 2,758,910
Daiei Inc. (Retail)...................................................... 300,000 4,066,768
Dai Ichi Kangyo Bank Ltd. (Banking)...................................... 380,000 7,726,858
Daikin Industries (Machinery & Engineering).............................. 200,000 2,214,765
Dai Nippon Ink & Chemicals Inc. (Chemicals).............................. 367,000 1,993,508
Daishi Bank (Banking).................................................... 150,000 860,608
Daiwa Bank (Banking)..................................................... 1,050,000 8,169,334
Daiwa Danchi (Building & Contractors) (A)................................ 200,000 1,298,311
Daiwa House Industry Co. Ltd. (Building & Contractors)................... 100,000 1,594,249
Denki Kagaku Kogyo (Chemicals)........................................... 100,000 386,629
Dowa Mining Co. (Metals, Materials & Paper).............................. 63,000 336,797
East Japan Railway Co. (Transportation).................................. 825 4,402,562
Ebara Corp. (Capital Goods).............................................. 180,000 2,800,915
Eisai Co. Ltd. ( Health & Personal Care)................................. 52,500 1,037,455
Familymart (Retail)...................................................... 45,000 2,199,491
Fuji Denki Reiki (Retail)................................................ 115,500 1,598,784
Fuji Electric Co. Ltd. (Technology)...................................... 600,000 3,471,072
Fuji Fire & Marine (Insurance)........................................... 230,000 1,345,947
Fuji Machine Manufacturing (Capital Goods)............................... 50,000 1,641,981
Fujitsu (Technology)..................................................... 150,000 1,546,517
Fukui Bank (Banking)..................................................... 200,000 1,258,216
Gakken Co. Ltd. (Broadcasting & Publishing).............................. 270,000 1,946,034
Godo Steel (Metals, Materials & Paper) (A)............................... 150,000 1,078,266
Gunze Ltd. (Chemicals)................................................... 65,000 426,295
Hitachi Ltd. (Electrical & Electronics).................................. 680,000 7,335,456
Hitachi Plant Engineering & Construction Co. Ltd. (Capital Goods)........ 64,000 533,988
Hitachi Transport System (Transport & Trade Services).................... 107,000 1,164,470
Hokkai Can Co. Ltd. (Materials & Commodities)............................ 125,000 1,063,231
Hokkaido Takushoku Bank (Banking)........................................ 550,000 1,590,908
Honda Motor Co. Ltd. (Automotive)........................................ 180,000 4,106,862
Industrial Bank of Japan Ltd. (Banking).................................. 114,000 3,047,212
Itoham Foods Inc. (Food Processing)...................................... 250,000 2,030,997
Izumi Co. (Retail)....................................................... 60,000 1,271,581
Izumiya Co. Ltd. (Retail)................................................ 55,000 1,050,104
Japan Airport Terminals (Media & Leisure)................................ 60,000 864,904
Japan Tobacco Inc. (Beverages & Tobacco)................................. 200 1,848,184
Kagawa Bank (Banking).................................................... 100,000 1,040,558
Kaken Pharmaceutical Co. (Health & Personal Care)........................ 115,000 1,048,434
Kao Corp. (Chemicals).................................................... 100,000 1,336,496
Kawasaki Heavy Industries Ltd. (Capital Goods)........................... 200,000 1,032,921
Kawasaki Kisen Kaisha Ltd. (Transport & Trade Services) (A).............. 700,000 2,579,438
Keiyo Co. Ltd. (Retail).................................................. 65,000 905,954
Kinden Corp. (Building & Contractors).................................... 82,500 1,315,256
Kinki Nippon Railway Co. Ltd. (Transport & Trade Services)............... 154,500 1,200,584
</TABLE>
The Accompanying Notes are an Integral Part of the Financial Statements.
19
<PAGE>
THE NON-U.S. EQUITY PORTFOLIO
SCHEDULE OF INVESTMENTS (UNAUDITED) (CONTINUED)
APRIL 30, 1996
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
DESCRIPTION SHARES VALUE
- --------------------------------------------------------------------------- ----------- ------------
JAPAN (CONTINUED)
<S> <C> <C>
Kissei Pharmaceutical Co. (Health & Personal Care)....................... 33,000 $ 1,039,603
Kitz Corp. (Machinery & Engineering)..................................... 145,000 757,173
Kurabo Industries (Textiles & Apparel)................................... 302,000 1,320,420
Kuraray Co. (Chemicals).................................................. 70,000 808,580
Kyocera Corp. (Technology)............................................... 15,000 1,128,385
Kyowa Hakko Kogyo Co. Ltd. (Chemicals)................................... 175,000 1,720,739
Marubeni Corp. (Transport & Trade Services).............................. 500,000 2,992,797
Maruha Corp. (Fishery) (A)............................................... 180,000 704,524
Matsushita Electric Industries Co. Ltd. (Consumer Electronics)........... 500,000 8,830,423
Matsushita Refrigeration Co. (Consumer).................................. 75,000 601,423
Matsumoto Yushi Seiyaku Co. (Chemicals).................................. 44,000 924,092
Minebea Co. (Capital Goods).............................................. 250,000 2,293,523
Minolta Co. Ltd. (Consumer).............................................. 125,000 763,712
Mitsubishi Chemical Corp. (Chemicals).................................... 120,000 657,556
Mitsubishi Electric Corp. Ltd. (Electrical & Electronics)................ 400,000 3,146,494
Mitsubishi Gas Chemical Corp. (Chemicals)................................ 750,000 3,694,458
Mitsubishi Heavy Industries (Capital Goods).............................. 1,118,000 9,968,468
Mitsubishi Oil Co. (Energy Sources)...................................... 100,000 899,271
Mitsui Mining & Smelting Co. Ltd. (Metals, Materials & Paper)............ 350,000 1,603,796
Mitsui Toatsu Chemicals Inc. (Chemicals)................................. 650,000 2,879,195
Mitsui Trust & Banking Co. Ltd. (Banking)................................ 200,000 2,405,693
Mizuno Corp. (Retail).................................................... 262,000 2,626,215
Morinaga Milk Industry Co. Ltd. (Food & Household Products).............. 100,000 537,462
Nagase & Co. Ltd. (Transport & Trade Services)........................... 100,000 992,826
Nagoya Railroad Co. Ltd. (Transport & Trade Services).................... 150,000 810,490
New Oji Paper Co. (Metals, Material & Paper)............................. 150,000 1,384,706
Nichii Co. Ltd. (Merchandising).......................................... 100,000 1,603,796
Nichicon Corp. (Technology).............................................. 75,000 1,245,806
Nihon Matai Co. (Wholesale & International Trade)........................ 94,000 620,077
Nippon Credit Bank (Banking)............................................. 193,000 786,729
Nippon Express Co. Ltd. (Transport & Trade Services)..................... 200,000 2,081,116
Nippon Meat Packers Inc. (Food Processing)............................... 50,000 792,351
Nippon Paper Industries (Metal, Materials & Paper)....................... 200,000 1,462,509
Nippon Road Co. Ltd. (Building & Contractors)............................ 130,000 1,120,652
Nippon Sheet Glass Co. Ltd. (Food & Household Products).................. 225,000 1,155,592
Nippon Steel Corp. (Metals).............................................. 433,000 1,562,498
Nippon Telephone & Telegraph (Telecommunications)........................ 160 1,238,741
Nippon Zeon Co. Ltd. (Chemicals)......................................... 180,000 1,147,859
Nishimatsu Construction Co. Ltd. (Building & Contractors)................ 200,000 2,348,415
Nissan Diesel Motor Co. (Automotive)..................................... 340,000 1,911,763
Nissan Motor Co. Ltd. (Automotive)....................................... 600,000 5,063,412
Nitto Boseki Co. (Consumer) (A).......................................... 105,000 377,894
Nomura Securities Co. Ltd. (Financial Services).......................... 474,000 10,316,988
North Pacific Bank (Banking)............................................. 220,000 1,260,125
Okamura Corp. (Transportation)........................................... 140,000 1,253,634
Okumura Corp. (Building & Contractors)................................... 300,000 2,863,921
Ono Pharmaceuticals Co. (Health & Personal Care)......................... 50,000 1,885,415
Osaka Gas Co. Ltd. (Utilities)........................................... 519,000 2,075,970
Osaka Sanso Kogyo (Chemicals)............................................ 300,000 1,340,315
</TABLE>
The Accompanying Notes are an Integral Part of the Financial Statements.
20
<PAGE>
THE NON-U.S. EQUITY PORTFOLIO
SCHEDULE OF INVESTMENTS (UNAUDITED) (CONTINUED)
APRIL 30, 1996
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
DESCRIPTION SHARES VALUE
- --------------------------------------------------------------------------- ----------- ------------
JAPAN (CONTINUED)
<S> <C> <C>
Parco Co. (Retail)....................................................... 77,000 $ 918,841
Penta Ocean Construction (Building & Contractors)........................ 95,000 717,364
Pokka Corp. (Food & Household Products).................................. 50,000 620,516
QP Corp. (Food & Household Products)..................................... 146,000 1,477,401
Ricoh Corp. Ltd. (Electronics)........................................... 186,000 2,184,026
Rohm Co. (Electronics)................................................... 20,000 1,271,581
Ryobi Ltd. (Metals, Materials & Paper)................................... 400,000 2,195,673
Ryoyo Electro Corp. (Technology)......................................... 30,000 770,395
Sanden Corp. (Industrial Components)..................................... 50,000 371,355
San-in Godo Bank Ltd. (Banking).......................................... 100,000 849,630
Sakura Bank Ltd. (Banking)............................................... 358,000 4,203,663
Sankyo Aluminium Industry Co. Ltd. (Building & Contractors).............. 75,000 475,411
Sanwa Bank (Banking)..................................................... 200,000 4,047,675
Shikoku Electric Power Inc. (Utilities).................................. 100,000 2,453,425
Showa Aluminium Co. (Metals, Materials & Paper).......................... 120,000 674,740
Showa Denko K.K. (Chemicals) (A)......................................... 800,000 2,642,444
Snow Brand Milk Products Co. Ltd. (Food & Household Products)............ 300,000 2,173,716
Sony Corp. (Electrical & Electronics).................................... 73,000 4,738,834
Sumitomo Bank Ltd. (Banking)............................................. 520,000 11,119,650
Sumitomo Electric Industries Ltd. (Capital Goods)........................ 120,000 1,718,352
Sumitomo Forestry Co. (Engineering & Construction)....................... 200,000 3,073,942
Sumitomo Light Metal Industries (Metals, Materials & Paper).............. 150,000 608,583
Sumitomo Metal Industries (Metals, Materials & Paper).................... 2,790,000 8,949,180
Sumitomo Realty & Development Co. Ltd. (Building & Contractors).......... 150,000 1,205,711
Tadano Ltd. (Capital Goods).............................................. 100,000 964,187
Takashimaya Co. Ltd. (Retail)............................................ 200,000 3,264,870
Toa Corporation (Building & Contractors)................................. 150,000 1,051,059
Tobu Railway Co. Ltd. (Transport & Trade Services)....................... 175,000 1,209,529
Toenec Corp. (Technology)................................................ 50,000 510,733
Toho Gas Co. Ltd. (Utilities)............................................ 247,000 929,037
Tohoku Electric Power Co. Inc. (Utilities)............................... 80,000 1,985,652
Tokio Marine & Fire Insurance Co. Ltd. (The) (Insurance)................. 261,000 3,587,920
Tokyo Electric Power Co. Inc. (Utilities)................................ 135,000 3,672,978
Tokyu Land Corp. (Financial Services) (A)................................ 500,000 2,563,209
Tomen Corp. (Transport & Trade Services)................................. 500,000 2,042,930
Toppan Printing Co. Ltd. (Transport & Trade Services).................... 130,000 1,911,190
Topy Industries Co. Ltd. (Capital Goods)................................. 150,000 717,412
Toshiba Corp. (Electrical & Electronics)................................. 75,000 582,808
Tosoh Corp. (Chemicals) (A).............................................. 755,000 3,538,899
Toyo Construction Co. (Building & Contractors)........................... 303,000 1,718,181
Toyo Trust & Banking Co. Ltd. (Banking).................................. 210,000 2,285,409
Tyobo Co. Ltd. (Consumer)................................................ 95,000 385,436
Toyoda Gosei Co. (Automotive)............................................ 139,000 1,180,985
Toyota Motor Corp. (Automotive).......................................... 405,000 9,240,441
Tsubakimoto Chain (Capital Goods)........................................ 200,000 1,410,958
Ube Industires Ltd. (Chemicals).......................................... 321,000 1,320,759
Uni-Charm Corp. (Merchandising).......................................... 60,000 1,695,441
Victor Co. of Japan (Consumer)........................................... 50,000 692,114
Yamazaki Baking Co. (Food & Household Products).......................... 60,000 1,225,758
</TABLE>
The Accompanying Notes are an Integral Part of the Financial Statements.
21
<PAGE>
THE NON-U.S. EQUITY PORTFOLIO
SCHEDULE OF INVESTMENTS (UNAUDITED) (CONTINUED)
APRIL 30, 1996
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
DESCRIPTION SHARES VALUE
- --------------------------------------------------------------------------- ----------- ------------
JAPAN (CONTINUED)
<S> <C> <C>
Yaohan Japan Corp. (Retail).............................................. 100,000 $ 913,591
Yaskawa Electric Manufacturing Co. Ltd. ( Technology) (A)................ 70,000 370,209
Yasuda Trust & Banking Co. Ltd. (Financial Services)..................... 645,000 4,273,256
Yokogawa Bridge Corp. (Metals, Materials & Paper)........................ 25,000 372,310
Yokohama Rubber Co. Ltd. (Metals, Materials & Paper)..................... 410,000 2,735,904
Zexel Corp. (Machinery & Engineering).................................... 200,000 1,477,783
------------
337,961,894
------------
MALAYSIA (0.7%)
Commerce Asset-Holdings (Financial Services)............................. 351,000 2,392,795
IOI Corporation (Metals, Materials & Paper).............................. 427,000 640,397
New Straits Times Press (Media & Leisure)................................ 205,000 1,101,560
Sime Darby Berhad (Multi-Industry)....................................... 535,000 1,480,309
Tan Chong Motor Holdings Berhad (Automotive)............................. 524,000 844,709
------------
6,459,770
------------
NETHERLANDS (2.7%)
ABN Amro Holdings (Banking).............................................. 52,130 2,694,944
Aegon NV ( Insurance).................................................... 17,500 832,275
Dutch State Mines (Chemicals)............................................ 20,700 2,111,285
Elsevier NV (Broadasting & Publishing)................................... 66,000 992,435
Heineken Holding (Food & Household Products)............................. 4,000 748,348
Internationale Nederlanden Groep (Insurance)............................. 31,300 2,413,474
Koninklijke KNP (Metals, Materials & Paper).............................. 28,450 678,178
Koninklijke PTT Nederland (Utilities).................................... 29,000 1,086,794
Moeara Enim Petroleum (Energy Sources)................................... 160 2,527,130
Royal Dutch Petroleum (Energy Sources)................................... 48,540 6,905,672
Unilever NV (Food & Household Products).................................. 20,645 2,813,182
------------
23,803,717
------------
NEW ZEALAND (0.3%)
Fletcher Challenge Paper (Metals, Materials & Paper) (A)................. 340,000 700,509
Fletcher Challenge Energy (Energy Sources) (A)........................... 170,000 364,265
Fletcher Challenge Building (Building & Contractors) (A)................. 170,000 402,793
Lion Nathan Ltd. (Food & Household Products)............................. 619,000 1,543,159
------------
3,010,726
------------
NORWAY (1.3%)
Aker AS, Series B (Building Materials)................................... 70,000 1,159,158
Hafslund Nycomed, Series B (Health & Personal Care)...................... 70,000 1,951,426
Kvaerner AS, Series B (Machinery & Engineering).......................... 50,000 1,925,599
Norsk Hydro AS (Energy Sources).......................................... 120,000 5,460,042
Orkla AS, B Free (Multi-Industry)........................................ 30,000 1,367,289
------------
11,863,514
------------
</TABLE>
The Accompanying Notes are an Integral Part of the Financial Statements.
22
<PAGE>
THE NON-U.S. EQUITY PORTFOLIO
SCHEDULE OF INVESTMENTS (UNAUDITED) (CONTINUED)
APRIL 30, 1996
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
DESCRIPTION SHARES VALUE
- --------------------------------------------------------------------------- ----------- ------------
SINGAPORE (1.3%)
<S> <C> <C>
Development Bank of Singapore (Banking).................................. 125 $ 1,583
Malaysia International Shipping Corp. (Transport & Trade Services)....... 333 1,044
Natsteel Ltd. (Metals, Materials & Paper)................................ 343,000 687,966
Overseas Chinese Banking Corp. (Banking)................................. 87,000 1,194,264
Sime Darby Berhad (Multi-Industry)....................................... 499,800 1,386,387
Sime U.E.P. Properties (Building & Contractors).......................... 334,000 641,407
Singapore Airlines Ltd. (Transportation)................................. 106,600 1,076,637
Singapore Press Holdings Ltd. (Media & Leisure).......................... 64,000 1,210,836
Singapore Telecommunications (Utilities)................................. 990,000 2,436,323
United Overseas Bank (Banking)........................................... 215,000 2,094,993
United Overseas Land (Building & Contractors)............................ 359,000 748,145
------------
11,479,585
------------
SPAIN (2.3%)
Banco Intercontinental Espanol (Banking)................................. 20,100 2,111,540
Banco Pastor (Banking)................................................... 22,200 1,270,655
Banco Popular Espanol (Banking).......................................... 14,700 2,432,961
Empresa Nacional de Electric (Utilities)................................. 50,400 3,161,728
Fuerzas Electric de Cataluna SA, Series A (Utilities).................... 403,300 2,814,992
Iberdrola SA (Utilities)................................................. 183,700 1,795,667
Repsol SA (Energy Sources)............................................... 103,300 3,783,548
Telefonica de Espana (Telecommunications)................................ 175,100 3,113,878
------------
20,484,969
------------
SWITZERLAND (3.5%)
Baer Holdings AG (Banking)............................................... 490 547,229
BBC AG Brown Boveri & Cie (Machinery & Engineering)...................... 620 745,214
Ciba Geigy AG (Chemicals)................................................ 5,035 5,829,368
Compagnie Financiere Richemont AG (Food & Household Products)............ 600 877,366
CS Holding (Banking)..................................................... 5,845 529,491
Fischer (Georg) AG (Capital Goods)....................................... 820 975,065
Holderbank Financiere Glarus (Building Materials)........................ 900 678,994
Interdiscount Holding AG (Retail) (A).................................... 3,400 81,952
Liechtenstein Global Trust (Financial Services).......................... 1,250 636,733
Merkur Holding AG (Retail)............................................... 5,640 1,160,051
Nestle SA (Food & Household Products).................................... 3,965 4,399,414
Roche Holdings Genusscheine NPV (Health & Personal Care)................. 796 6,245,156
Sandoz AG (Health & Personal Care)....................................... 3,430 3,736,903
Schweizerischer Bankverein (Banking) (A)................................. 7,720 2,884,219
Societe Generale de Surveillance Holdings SA (Transport & Trade
Service)................................................................ 350 787,379
Swissair AG (Transportation) (A)......................................... 880 867,531
------------
30,982,065
------------
UNITED KINGDOM (13.6%)
Abbey National PLC (Banking)............................................. 148,000 1,261,465
Allied Colloids Group PLC (Chemicals).................................... 700,000 1,386,555
</TABLE>
The Accompanying Notes are an Integral Part of the Financial Statements.
23
<PAGE>
THE NON-U.S. EQUITY PORTFOLIO
SCHEDULE OF INVESTMENTS (UNAUDITED) (CONTINUED)
APRIL 30, 1996
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
DESCRIPTION SHARES VALUE
- --------------------------------------------------------------------------- ----------- ------------
UNITED KINGDOM (CONTINUED)
<S> <C> <C>
Allied Domecq PLC (Food & Household Products)............................ 261,000 $ 2,011,157
Amersham International PLC (Health & Personal Care)...................... 60,000 965,186
Argyll Group PLC (Retail)................................................ 374,000 1,863,265
Barclays Bank (Banking).................................................. 226,000 2,499,430
BAT Industries PLC (Beverages & Tobacco)................................. 407,000 3,065,936
BICC (Industrial Components)............................................. 272,000 1,416,326
BOC Group PLC (Chemicals)................................................ 111,100 1,538,795
Britannic Assurance (Insurance).......................................... 118,000 1,421,879
British Gas PLC (Utilities).............................................. 440,000 1,558,223
British Petroleum Co. Ltd. (Energy Sources).............................. 495,000 4,453,069
British Telecommunications PLC (Telecommunications)...................... 680,000 3,719,388
British Tire & Rubber PLC (Multi-Industry)............................... 579,000 2,780,312
Cable & Wireless PLC (Telecommunications)................................ 271,000 2,120,746
Caradon PLC (Building & Contractors)..................................... 509,000 1,756,753
Dalgety PLC (Food & Household Products).................................. 314,000 1,828,211
General Electric Co. PLC (Electrical & Electronics)...................... 353,000 1,899,017
Glaxo Wellcome PLC (Health & Personal Care).............................. 630,496 7,621,016
Glynwed International PLC (Metals, Materials & Paper).................... 300,200 1,660,019
Granada Group PLC (Leisure & Tourism).................................... 205,077 2,534,227
Guardian Royal Exchange PLC (Insurance).................................. 729,000 2,466,829
Guinness PLC (Beverages & Tobacco)....................................... 375,000 2,689,826
Hanson Trust PLC (Multi-Industry)........................................ 514,000 1,519,478
Hillsdown Holdings PLC (Food & Household Products)....................... 682,000 1,842,137
HSBC Holdings (Banking).................................................. 225,000 3,320,641
Inchcape PLC (Commercial Services)....................................... 303,000 1,327,671
Kingfisher (Merchandising)............................................... 218,000 1,944,793
Lloyds TSB Group (Banking)............................................... 696,450 3,328,621
Lucas Industries PLC (Capital Goods)..................................... 466,000 1,499,955
Marks & Spencer PLC (Merchandising)...................................... 329,500 2,192,876
MEPC (Real Estate)....................................................... 290,000 1,864,721
National Power (Utilities)............................................... 305,000 2,565,314
National Westminster Bank (Banking)...................................... 225,000 2,068,015
Pearson PLC (Multi-Industry)............................................. 194,000 2,043,637
Peninsular & Orient Steam Navigation Company (Transportation)............ 131,000 1,028,106
Racal Electronics (Technology)........................................... 277,000 1,434,049
Rank Organisation PLC (Media & Leisure).................................. 217,000 1,735,609
Reuters Holdings PLC (Broadcasting & Publishing)......................... 233,100 2,630,420
Rolls-Royce PLC (Machinery & Engineering)................................ 589,000 2,094,733
RTZ Corp. PLC (Metals, Materials & Paper)................................ 147,000 2,307,353
Sainsbury (J.) PLC (Retail).............................................. 437,000 2,400,090
Sears Holdings (Merchandising)........................................... 1,362,000 2,054,037
Shell Transport & Trading Co. (Energy Sources)........................... 282,000 3,709,079
Smithkline Beecham (Health & Personal Care).............................. 243,166 2,572,510
South West Water (Utilities)............................................. 217,700 2,231,229
Standard Chartered PLC (Financial Services).............................. 229,000 2,137,425
Tarmac PLC (Building Materials).......................................... 921,500 1,804,558
Thorn EMI PLC (Appliances & Household Durables).......................... 92,000 2,543,667
Tomkins (Multi-Industry)................................................. 423,000 1,739,226
Unilever PLC (Food & Household Products)................................. 70,000 1,277,311
</TABLE>
The Accompanying Notes are an Integral Part of the Financial Statements.
24
<PAGE>
THE NON-U.S. EQUITY PORTFOLIO
SCHEDULE OF INVESTMENTS (UNAUDITED) (CONTINUED)
APRIL 30, 1996
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
DESCRIPTION SHARES VALUE
- --------------------------------------------------------------------------- ----------- ------------
UNITED KINGDOM (CONTINUED)
<S> <C> <C>
Vodafone Group PLC (Telecommunications).................................. 718,000 $ 2,860,579
Willis Corroon Group PLC (Insurance)..................................... 367,900 844,668
Yorkshire Electricity Group (Utilities).................................. 85,000 1,044,005
Zeneca Group PLC (Health & Personal Care)................................ 64,000 1,337,335
------------
119,821,478
------------
Total Common Stocks (cost $721,817,227)................................ 788,492,226
------------
PREFERRED STOCKS (0.6%)
GERMANY (0.6%)
GEA AG (Machinery)....................................................... 4,715 1,463,522
Jungheinrich (Capital Goods)............................................. 6,730 943,548
Rheinisch Westfalisches Elekt AG (Utilities)............................. 50,300 1,461,256
SAP AG, 9.00 (Computer Software)......................................... 11,000 1,458,279
------------
Total Preferred Stocks (cost $6,015,623)............................... 5,326,605
------------
<CAPTION>
PRINCIPAL
AMOUNT
(IN FRF)
-----------
<S> <C> <C> <C>
CONVERTIBLE BONDS (4.6%)
FRANCE (0%)*
Sanofi 4.00% due 01/01/00 (Pharmaceuticals)................................... 372,500 323,699
-----------
</TABLE>
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT
(IN YEN)
------------
<S> <C> <C>
JAPAN (3.9%)
BOT Cayman Finance 4.25% due 03/31/03 (Banking)............................... 950,000,000 13,206,852
Canon Inc. 1.3% due 12/19/08 (Consumer)....................................... 111,000,000 1,478,213
Daido Hoxan Inc. 1.6% due 03/29/02 (Chemicals)................................ 30,000,000 336,511
Izumiya Co. Ltd. 0.80% due 08/31/99 (Retail).................................. 140,000,000 1,804,270
Matsushita Electric Works 2.7% due 05/31/02 (Building & Contractors).......... 75,000,000 908,579
Mitsui & Co Ltd. 1.05% due 09/30/99 (Transport & Trade Services).............. 75,000,000 810,490
NEC Corp. 1.90% due 03/30/01 (Electrical & Electronics)....................... 700,000,000 9,168,365
SXL Corp. 2.70% due 03/29/02 (Building & Contractors)......................... 60,000,000 678,749
Toyota Motor Co. 1.70% due 05/31/96 (Automotive).............................. 75,000,000 1,174,207
Toyota Motor Co. 1.2% due 01/28/98 (Automotive)............................... 300,000,000 3,528,350
Yamato Transport 3.90% due 03/30/01 (Transportation).......................... 132,000,000 1,696,128
-----------
34,790,714
-----------
</TABLE>
The Accompanying Notes are an Integral Part of the Financial Statements.
25
<PAGE>
THE NON-U.S. EQUITY PORTFOLIO
SCHEDULE OF INVESTMENTS (UNAUDITED) (CONTINUED)
APRIL 30, 1996
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT
DESCRIPTION (IN USD) VALUE
- -------------------------------------------------------------------------------- ------------ -----------
<S> <C> <C>
MALAYSIA (0.2%)
Telekom Malaysia 4% due 10/30/04 (Telecommunications)......................... 1,540,000 $ 1,641,063
-----------
</TABLE>
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT
(IN CHF)
------------
<S> <C> <C>
SWITZERLAND (0.4%)
Sandoz Capital BVI Ltd. 1.25% due 10/23/02 (Financial Services)............... 1,595,000 1,720,414
-----------
</TABLE>
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT
(IN USD)
------------
<S> <C> <C>
Swiss Re Finance Bermuda 2% due 07/06/00 (Insurance).......................... 1,790,000 1,995,850
-----------
3,716,264
-----------
<CAPTION>
PRINCIPAL
AMOUNT
(IN STG)
------------
<S> <C> <C>
UNITED KINGDOM (0.1%)
BPB Industries PLC 7.25% due 08/25/08 (Building & Contractors)................ 396,000 792,193
-----------
Total Convertible Bonds (cost $37,665,016).................................. 41,263,933
-----------
</TABLE>
<TABLE>
<CAPTION>
SHARES
------------
<S> <C> <C>
WARRANTS (0.6%)
FRANCE (0%)*
LaGardere Groupe, Expiring 12/31/96 (Leisure & Tourism) (A)................... 16,000 12,671
-----------
GERMANY (0.3%)
Alliance Holdings AG, Expiring 02/23/98 (Insurance) (A) 17,330 821,568
Veba International, Expiring 04/06/98 (Energy Sources) (A).................... 8,870 2,122,757
-----------
2,944,325
-----------
JAPAN (0.1%)
Dowa Mining Co, Expiring 12/09/97 (Metals, Materials & Paper) (A)............. 391 635,375
Maeda Corp, Expiring 02/05/97 (Building & Contractors) (A).................... 315 567,000
-----------
1,202,375
-----------
NETHERLANDS (0.1%)
Philips Electronics, Expiring 06/30/98 (Appliances & Household Durables)
(A).......................................................................... 27,800 444,760
-----------
</TABLE>
The Accompanying Notes are an Integral Part of the Financial Statements.
26
<PAGE>
THE NON-U.S. EQUITY PORTFOLIO
SCHEDULE OF INVESTMENTS (UNAUDITED) (CONTINUED)
APRIL 30, 1996
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
DESCRIPTION SHARES VALUE
- -------------------------------------------------------------------------------- ------------ -----------
SWITZERLAND (0.1%)
<S> <C> <C>
Lion Corp., Expiring 6/18/99 (Chemicals) (A).................................. 2,000 $ 449,931
-----------
Total Warrants (cost $4,566,934)............................................ 5,054,062
-----------
</TABLE>
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT
(IN US
DOLLARS)
------------
<S> <C> <C>
TIME DEPOSITS (3.1%)
UNITED STATES (3.1%)
State Street Bank & Trust Co. 4.875 % due 05/01/96 (Banking) (cost $27,177,000
)............................................................................ 27,177,000 27,177,000
-----------
TOTAL INVESTMENTS (COST $797,241,800) (98.0%) 867,313,826
OTHER ASSETS NET OF LIABILITIES (2.0%) 14,176,822
-----------
NET ASSETS (100.0%) $881,490,648
-----------
-----------
</TABLE>
(A) Non-Income-Producing Security
* Less than 0.1%
Note: For Federal Income Tax purposes, the cost of securities owned at April
30, 1996 was substantially the same as the cost of securities for
financial statement purposes.
The Accompanying Notes are an Integral Part of the Financial Statements.
27
<PAGE>
THE NON-U.S. EQUITY PORTFOLIO
SCHEDULE OF INVESTMENTS (UNAUDITED) (CONTINUED)
APRIL 30, 1996
- --------------------------------------------------------------------------------
INDUSTRY DIVERSIFICATION
<TABLE>
<CAPTION>
PERCENT OF
TOTAL INVESTMENTS
---------------------
<S> <C>
Banking........................................................................................ 17.8%
Chemicals...................................................................................... 6.4%
Energy Sources................................................................................. 6.3%
Electrical & Electronics....................................................................... 6.0%
Metals, Materials & Paper...................................................................... 5.0%
Automotive..................................................................................... 4.8%
Utilities...................................................................................... 4.8%
Health & Personal Care......................................................................... 4.4%
Retail......................................................................................... 3.5%
Building & Contractors......................................................................... 3.3%
Financial Services............................................................................. 3.2%
Insurance...................................................................................... 3.2%
Capital Goods.................................................................................. 3.1%
Food & Household Products...................................................................... 3.1%
Transport & Trade.............................................................................. 2.4%
Merchandising.................................................................................. 2.3%
Multi-Industry................................................................................. 2.2%
Telecommunications............................................................................. 2.2%
Transportation................................................................................. 1.8%
Technology..................................................................................... 1.7%
Machinery...................................................................................... 1.6%
Beverages & Tobacco............................................................................ 1.3%
Broadcasting & Publishing...................................................................... 1.1%
Industrial Components.......................................................................... 1.0%
Miscellaneous.................................................................................. 7.5%
-----
100.0%
-----
-----
</TABLE>
The Accompanying Notes are an Integral Part of the Financial Statements.
28
<PAGE>
THE NON-U.S. EQUITY PORTFOLIO
STATEMENT OF ASSETS AND LIABILITIES (UNAUDITED)
APRIL 30, 1996
- --------------------------------------------------------------------------------
<TABLE>
<S> <C>
ASSETS
Investments at Value (Cost $797,241,800) $867,313,826
Cash 4,477
Foreign Currency at Value (Cost $17,103,466) 17,075,133
Receivable for Investments Sold 13,382,375
Dividends and Interest Receivable 3,717,536
Foreign Tax Reclaim Receivable 1,017,270
Unrealized Appreciation on Forward Foreign Currency Contracts 462,389
Unrealized Appreciation on Open Spot Foreign Currency Contracts 2,282
Prepaid Trustees' Fees 2,795
Prepaid Expenses 1,618
------------
Total Assets 902,979,701
------------
LIABILITIES
Payable for Investments Purchased 17,664,492
Unrealized Depreciation on Forward Foreign Currency Contracts 3,072,023
Advisory Fee Payable 589,995
Custody Fee Payable 85,657
Administrative Services Fee Payable 17,303
Administration Fee Payable 9,087
Fund Services Fee Payable 3,109
Accrued Expenses 47,387
------------
Total Liabilities 21,489,053
------------
NET ASSETS
Applicable to Investors' Beneficial Interests $881,490,648
------------
------------
</TABLE>
The Accompanying Notes are an Integral Part of the Financial Statements.
29
<PAGE>
THE NON-U.S. EQUITY PORTFOLIO
STATEMENT OF OPERATIONS (UNAUDITED)
FOR THE SIX MONTHS ENDED APRIL 30, 1996
- --------------------------------------------------------------------------------
<TABLE>
<S> <C> <C>
INVESTMENT INCOME
$ 5,650,321
Dividends (Net of $866,267 Foreign Withholding Taxes)
1,118,324
Interest (Net of $14,094 Foreign Withholding Taxes)
------------
6,768,645
Investment Income
EXPENSES
Advisory Fee $ 2,275,697
Custodian Fees and Expenses 448,548
Administrative Fee 41,663
Professional Fees 34,250
Fund Services Fee 21,154
Administrative Services Fee 67,216
Trustees' Fees and Expenses 6,938
Printing Expenses 4,496
Miscellaneous 4,467
-------------
(2,904,429)
Total Expenses
------------
3,864,216
NET INVESTMENT INCOME
NET REALIZED GAIN ON
Investment Transactions 11,079,494
Foreign Currency Contracts and Foreign Exchange Transactions 9,429,974
-------------
20,509,468
Net Realized Gain
NET CHANGE IN UNREALIZED APPRECIATION (DEPRECIATION) OF
Investments 78,383,012
Foreign Currency Contracts and Translations (4,430,580)
-------------
73,952,432
Net Change in Unrealized Appreciation (Depreciation)
------------
$ 98,326,116
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS
------------
------------
</TABLE>
The Accompanying Notes are an Integral Part of the Financial Statements.
30
<PAGE>
THE NON-U.S. EQUITY PORTFOLIO
STATEMENT OF CHANGES IN NET ASSETS
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
FOR THE SIX
MONTHS ENDED FOR THE FISCAL
APRIL 30, 1996 YEAR ENDED
(UNAUDITED) OCTOBER 31, 1995
---------------- -----------------
<S> <C> <C>
INCREASE (DECREASE) IN NET ASSETS
FROM OPERATIONS
Net Investment Income $ 3,864,216 $ 6,919,031
Net Realized Gain on Investments and Foreign Currency Transactions 20,509,468 15,078,850
Net Change in Unrealized Appreciation of Investments and
Foreign Currency Translations 73,952,432 (27,987,331)
---------------- -----------------
Net Increase (Decrease) in Net Assets Resulting from Operations 98,326,116 (5,989,450)
---------------- -----------------
TRANSACTIONS IN INVESTORS' BENEFICIAL INTERESTS
Contributions 228,090,206 373,795,232
Withdrawals (98,228,630) (138,078,647)
---------------- -----------------
Net Increase from Investors' Transactions 129,861,576 235,716,585
---------------- -----------------
Total Increase in Net Assets 228,187,692 229,727,135
NET ASSETS
Beginning of Period 653,302,956 423,575,821
---------------- -----------------
End of Period $ 881,490,648 $ 653,302,956
---------------- -----------------
---------------- -----------------
</TABLE>
- --------------------------------------------------------------------------------
SUPPLEMENTARY DATA
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
FOR THE SIX
MONTHS ENDED FOR THE FISCAL FOR THE FISCAL
APRIL 30, 1996 YEAR ENDED YEAR ENDED
(UNAUDITED) OCTOBER 31, 1995 OCTOBER 31, 1994
---------------- ----------------- -----------------
<S> <C> <C> <C>
Ratios to Average Net Assets
Expenses 0.77%(a) 0.82% 0.95%
Net Investment Income 1.02%(a) 1.31% 0.93%
Portfolio Turnover 26%(b) 59% 56%
</TABLE>
- ------------------------
(a) Annualized.
(b) Not Annualized
(c) Portfolio turnover for the fiscal year ended October 31, 1993, included the
portfolio activity of The Pierpont International Equity Fund, Inc. for the
period November 1, 1992 through October 3, 1993, prior to conversion when
The Pierpont International Equity Fund, Inc. contributed all of its
investable assets to the Portfolio.
The Accompanying Notes are an Integral Part of the Financial Statements.
31
<PAGE>
THE NON-U.S. EQUITY PORTFOLIO
NOTES TO FINANCIAL STATEMENTS (UNAUDITED)
APRIL 30, 1996
- --------------------------------------------------------------------------------
1. ORGANIZATION AND SIGNIFICANT ACCOUNTING POLICIES
The Non-U.S. Equity Portfolio (the "Portfolio") is registered under the
Investment Company Act of 1940, as amended, (the "Act") as a no-load,
diversified, open-end management investment company which was organized as a
trust under the laws of the State of New York. The Portfolio's investment
objective is to provide a high total return from a portfolio of equity
securities of foreign companies. The Portfolio commenced operations on
October 4, 1993 and received a contribution of certain assets and
liabilities, including securities, with a value of $160,213,973 on that date
from the Pierpont International Equity Fund, Inc. in exchange for a
beneficial interest in the Portfolio. At that date, net unrealized
appreciation of $11,116,204 was included in the contributed securities. The
Declaration of Trust permits the Trustees to issue an unlimited number of
beneficial interests in the Portfolio.
Investments in international markets may involve certain considerations and
risks not typically associated with investments in the United States. Future
economic and political developments in foreign countries could adversely
affect the liquidity or value, or both, of such securities in which the
Portfolio is invested. The ability of the issuers of the debt securities
held by the Portfolio to meet their obligations may be affected by economic
and political developments in a specific industry or region.
The preparation of financial statements prepared in accordance with
generally accepted accounting principals requires management to make
estimates and assumptions that affect the reported amounts and disclosures.
Actual amounts could differ from those estimates. The following is a summary
of the significant accounting policies of the Portfolio:
a)The value of each security for which readily available market quotations
exists is based on a decision as to the broadest and most representative
market for such security. The value of such security will be based either
on the last sale price on a national securities exchange, or, in the
absence of recorded sales, at the readily available closing bid price on
such exchanges, or at the quoted bid price in the over-the-counter market.
Securities listed on a foreign exchange are valued at the last quoted sale
price available before the time when net assets are valued. Unlisted
securities are valued at the average of the quoted bid and asked prices in
the over-the-counter market. Securities or other assets for which market
quotations are not readily available are valued at fair value in
accordance with procedures established by the Portfolio's Trustees. Such
procedures include the use of independent pricing services, which use
prices based upon yields or prices of securities of comparable quality,
coupon, maturity and type; indications as to values from dealers; and
general market conditions. All portfolio securities with a remaining
maturity of less than 60 days are valued by the amortized cost method.
Trading in securities on most foreign exchanges and over-the-counter
markets is normally completed before the close of the domestic market and
may also take place on days on which the domestic market is closed. If
events materially affecting the value of foreign securities occur between
the time when the exchange on which they are traded closes and the time
when the Portfolio's net asset value is calculated, such securities will
be valued at fair value in accordance with procedures established by and
under the general supervision of the Portfolio's Trustees.
32
<PAGE>
THE NON-U.S. EQUITY PORTFOLIO
NOTES TO FINANCIAL STATEMENTS (UNAUDITED) (CONTINUED)
APRIL 30, 1996
- --------------------------------------------------------------------------------
b)The books and records of the Portfolio are maintained in U.S. dollars. The
market value of investment securities, other assets and liabilities and
forward contracts stated in foreign currencies are translated at the
prevailing exchange rates at the end of the period. Purchases, sales,
income and expenses are translated at the exchange rates prevailing on the
respective dates of such transactions. Translation gains and losses
resulting from changes in the exchange rates during the reporting period
and gains and losses realized upon settlement of foreign currency
transactions are reported in the Statement of Operations.
Although the net assets of the Portfolio are presented at the exchange
rates and market values prevailing at the end of the period, the Portfolio
does not isolate the portion of the results of operations arising as a
result of changes in foreign exchange rates from the fluctuations arising
from changes in the market prices of securities during the period.
c)The Portfolio may enter into forward and spot foreign currency contracts
to protect securities and related receivables and payables against
fluctuations in future foreign currency rates. A forward contract is an
agreement to buy or sell currencies of different countries on a specified
future date at a specified rate. Risks associated with such contracts
include the movement in the value of the foreign currency relative to the
U.S. dollar and the ability of the counterparty to perform.
The market value of the contract will fluctuate with changes in currency
exchange rates. Contracts are valued daily based on procedures established
by and under the general supervision of the Portfolio's Trustees and the
change in the market value is recorded by the Portfolio as unrealized
appreciation or depreciation of foreign currency translations. At April
30, 1996, the Portfolio had open foreign currency contracts as follows:
SUMMARY OF OPEN FORWARD FOREIGN CURRENCY SALE CONTRACTS
<TABLE>
<CAPTION>
U.S. DOLLAR NET UNREALIZED
VALUE AT APPRECIATION/
SALES CONTRACTS PROCEEDS 04/30/96 (DEPRECIATION)
- ------------------------------------------------------------- ------------- ------------- ---------------
<S> <C> <C> <C>
French Franc 117,210,233, expiring 07/23/96 $ 22,946,404 $ 22,719,718 $ 226,686
German Mark 21,655,860, expiring 07/23/96 14,427,622 14,191,919 235,703
Japanese Yen 9,318,493,076, expiring 07/23/96 87,007,405 90,079,428 (3,072,023)
---------------
Net Unrealized Depreciation on Forward Foreign Currency Contracts $ (2,609,634)
---------------
---------------
</TABLE>
SUMMARY OF OPEN SPOT FOREIGN CURRENCY CONTRACTS
<TABLE>
<CAPTION>
U.S. DOLLAR
VALUE AT NET UNREALIZED
PURCHASE CONTRACTS COST 04/30/96 APPRECIATION
- ------------------------------------------------------------- ------------- ------------- ---------------
<S> <C> <C> <C>
Italian Lira 662,000,000, per GBP 280,447, expiring 05/03/96 $ 420,839 $ 423,121 $ 2,282
------
------
</TABLE>
d)Securities transactions are recorded on a trade date basis. Dividend
income is recorded on the ex-dividend date or at the time that the
relevant ex-dividend date and amount becomes known. Interest
33
<PAGE>
THE NON-U.S. EQUITY PORTFOLIO
NOTES TO FINANCIAL STATEMENTS (UNAUDITED) (CONTINUED)
APRIL 30, 1996
- --------------------------------------------------------------------------------
income, which includes the amortization of premiums and discount, if any,
is recorded on an accrual basis. For financial and tax reporting purposes,
realized gains and losses are determined on the basis of specific lot
identification.
e)The Portfolio intends to be treated as a partnership for federal income
tax purposes. As such, each investor in the Portfolio will be taxable on
its share of the Portfolio's ordinary income and capital gains. It is
intended that the Portfolio's assets will be managed in such a way that an
investor in the Portfolio will be able to satisfy the requirements of
Subchapter M of the Internal Revenue Code. The Portfolio earns foreign
income which may be subject to foreign withholding taxes at various rates.
2. TRANSACTIONS WITH AFFILIATES
a)The Portfolio has an investment advisory agreement with Morgan Guaranty
Trust Company of New York ("Morgan"). Under the terms of the investment
advisory agreement, the Portfolio pays Morgan at an annual rate of 0.60%
of the Portfolio's average daily net assets. For the six months ended
April 30, 1996, such fees amounted to $2,275,697.
b)The Portfolio has retained Signature Broker-Dealer Services, Inc.
("Signature") to serve as administrator and exclusive placement agent.
Signature provides administrative services necessary for the operations of
the Portfolio, furnishes office space and facilities required for
conducting the business of the Portfolio and pays the compensation of the
Portfolio's officers affiliated with Signature. The agreement provided for
a fee to be paid to Signature at an annual rate determined by the
following schedule: 0.01% of the first $1 billion of the aggregate average
daily net assets of the Portfolio and the other portfolios subject to the
Administrative Services Agreement, 0.008% of the next $2 billion of such
net assets, 0.006% of the next $2 billion of such net assets, and 0.004%
of such net assets in excess of $5 billion. The daily equivalent of the
fee rate is applied each day to the net assets of the Portfolio. For the
period November 1, 1995 through December 28, 1995, such fees amounted to
$9,619.
Effective December 29, 1995, the Administration Agreement was amended such
that the fee charged would be equal to the Portfolio's proportionate share
of a complex-wide fee based on the following annual schedule: 0.03% on the
first $7 billion of the aggregate average daily net assets of the
Portfolio and the other portfolios subject to this agreement (the "Master
Portfolios") and 0.01% on the aggregate average daily net assets of the
Master Portfolios in excess of $7 billion. The portion of this charge
payable by the Portfolio is determined by the proportionate share its net
assets bear to the total net assets of The Pierpont Funds, The JPM
Institutional Funds, The JPM Advisor Funds and the Master Portfolios. For
the period from December 29, 1995 through April 30, 1996, such fees
amounted to $32,044.
c)Until August 31, 1995, the Portfolio had a Financial and Fund Accounting
Services Agreement ("Services Agreement") with Morgan under which Morgan
received a fee, based on the percentage described below, for overseeing
certain aspects of the administration and operation of the Portfolio and
was also designed to provide an expense limit for certain expenses of the
Portfolio. This fee was calculated exclusive of the advisory fee, custody
expenses, fund services fee, and brokerage costs at 0.15% of the
Portfolio's average daily net assets up to $200 million, 0.10% of the next
$200 million of average daily net
34
<PAGE>
THE NON-U.S. EQUITY PORTFOLIO
NOTES TO FINANCIAL STATEMENTS (UNAUDITED) (CONTINUED)
APRIL 30, 1996
- --------------------------------------------------------------------------------
assets, and 0.05% of the next $200 million of average daily net assets and
0.03% on any excess over $600 million. From September 1, 1995 until
December 28, 1995, an interim agreement between the Portfolio and Morgan
provided for the continuation of the oversight functions that were
outlined under the Services Agreement and that Morgan should bear all of
its expenses incurred in connection with these services.
Effective December 29, 1995, the Portfolio entered into an Administrative
Services Agreement (the "Agreement") with Morgan under which Morgan is
responsible for overseeing certain aspects of the administration and
operation of the Portfolio. Under the Agreement, the Portfolio has agreed
to pay Morgan a fee equal to its proportionate share of an annual
complex-wide charge. This charge is calculated daily based on the
aggregate net assets of the Master Portfolios in accordance with the
following annual schedule: 0.06% on the first $7 billion of the Master
Portfolios' aggregate average daily net assets and 0.03% of the aggregate
average daily net assets in excess of $7 billion. The portion of this
charge payable by the Portfolio is determined by the proportionate share
that the Portfolio's net assets bear to the net assets of the Master
Portfolios and other investors in the Master Portfolios for which Morgan
provides similar services. For the period December 29, 1995 through April
30, 1996, the fee for these services amounted to $67,216.
d)The Portfolio has a Fund Services Agreement with Pierpont Group, Inc.
("Group") to assist the Trustees in exercising their overall supervisory
responsibilities for the Portfolio's affairs. The Trustees of the
Portfolio represent all the existing shareholders of Group. The
Portfolio's allocated portion of Group's costs in performing its services
amounted to $21,154 for the six months ended April 30, 1996.
e)An aggregate annual fee of $65,000 is paid to each Trustee for serving as
a Trustee of The Pierpont Funds, The JPM Institutional Funds and the
Master Portfolios. The Trustees' Fees and Expenses shown in the financial
statements represent the Portfolio's allocated portion of the total fees
and expenses. The Trustee who serves as Chairman and Chief Executive
Officer of the Portfolio also serves as Chairman of Group and received
compensation and employee benefits from Group in his role as Group's
Chairman. The allocated portion of such compensation and benefits included
in the Fund Services Fee shown in the financial statements was $2,700.
3. INVESTMENT TRANSACTIONS
Investment transactions (excluding short-term investments) for the six
months ended April 30, 1996, were as follows:
<TABLE>
<CAPTION>
COST OF PROCEEDS
PURCHASES FROM SALES
- -------------- --------------
<S> <C>
$324,131,537 $192,349,478
</TABLE>
35
<PAGE>
PART C
ITEM 24. FINANCIAL STATEMENTS AND EXHIBITS.
(a) Financial Statements:
The following financial statements are included in Part A:
Financial Highlights: The JPM Advisor U.S. Fixed Income Fund, The JPM Advisor
International Equity Fund and The JPM Advisor Emerging Markets Equity Fund
The following financial statements are included in Part B:
The JPM Advisor U.S. Fixed Income Fund
Statement of Assets and Liabilities at October 31, 1995
Statement of Operations for the period March 24, 1995 (Inception Date) to
October 31, 1995
Statement of Changes in Net Assets
Financial Highlights
Notes to Financial Statements, October 31, 1995
The U.S. Fixed Income Portfolio
Schedule of Investments at October 31, 1995
Statement of Assets and Liabilities at October 31, 1995
Statement of Operations for the fiscal year ended October 31, 1995
Statement of Changes in Net Assets
Supplementary Data
Notes to Financial Statements, October 31, 1995
The JPM Advisor International Fixed Income Fund
Statement of Assets and Liabilities at September 30, 1995
Notes to Financial Statement, September 30, 1995
Statement of Assets and Liabilities at March 31, 1996 (unaudited)
Statement of Operations for the six months ended March 31, 1996 (unaudited)
Statement of Changes in Net Assets (unaudited)
Financial Highlights (unaudited)
Notes to Financial Statements, March 31, 1996 (unaudited)
The Non-U.S. Fixed Income Portfolio
Schedule of Investments at September 30, 1995
Statement of Assets and Liabilities at September 30, 1995
Statement of Operations for the fiscal year ended September 30, 1995
Statement of Changes in Net Assets
Supplementary Data
Notes to Financial Statement, September 30, 1995
Schedule of Investments at March 31, 1996 (unaudited)
Statement of Assets and Liabilities at March 31, 1996 (unaudited)
Statement of Operations for the six months ended March 31, 1996 (unaudited)
Statement of Changes in Net Assets (unaudited)
Supplementary Data (unaudited)
Notes to Financial Statements, March 31, 1996 (unaudited)
The JPM Advisor U.S. Equity Fund
Statement of Assets and Liabilities at May 31, 1995
Notes to Financial Statement, May 31, 1995
The Selected U.S. Equity Portfolio
Schedule of Investments at May 31, 1995
Statement of Assets and Liabilities at May 31, 1995
Statement of Operations For the fiscal year ended May 31, 1995
Statement of Changes in Net Assets
Supplementary Data
Notes to Financial Statements, May 31, 1995
Schedule of Investments at November 30, 1995 (unaudited)
Statement of Assets and Liabilities at November 30, 1995 (unaudited)
Statement of Operations for the six months ended November 30, 1995 (unaudited)
Statement of Changes in Net Assets (unaudited)
Supplementary Data (unaudited)
Notes to Financial Statements, November 30 1995 (unaudited)
The JPM Advisor U.S. Small Cap Equity Fund
Statement of Assets and Liabilities at May 31, 1995
Notes to Financial Statement, May 31, 1995
The U.S. Small Company Portfolio
Schedule of Investments at May 31, 1995
Statement of Assets and Liabilities at May 31, 1995
Statement of Operations for the fiscal year ended May 31, 1995
Statement of Changes in Net Assets
Supplementary Data
Notes to Financial Statements, May 31, 1995
Schedule of Investments at November 30, 1995 (unaudited)
Statement of Assets and Liabilities at November 30, 1995 (unaudited)
Statement of Operations for the six months ended November 30, 1995 (unaudited)
Statement of Changes in Net Assets (unaudited)
Supplementary Data (unaudited)
Notes to Financial Statements, November 30, 1995 (unaudited)
The JPM Advisor International Equity Fund
Statement of Assets and Liabilities at October 31, 1995
Notes to Financial Statement, October 31, 1995
Statement of Assets and Liabilities at April 30, 1996 (unaudited)
Statement of Operations for the six months ended April 30, 1996 (unaudited)
Statement of Changes in Net Assets (unaudited)
Financial Highlights (unaudited)
Notes to Financial Statements, April 30, 1996 (unaudited)
The Non-U.S. Equity Portfolio
Schedule of Investments at October 31, 1995
Statement of Assets and Liabilities at October 31, 1995
Statement of Operations for the fiscal year ended October 31, 1995
Statement of Changes in Net Assets
Supplementary Data
Notes to Financial Statements, October 31, 1995
Schedule of Investments at April 30, 1996 (unaudited)
Statement of Assets and Liabilities at April 30, 1996 (unaudited)
Statement of Operations for the six months ended April 30, 1996 (unaudited)
Statement of Changes in Net Assets (unaudited)
Supplementary Data (unaudited)
Notes to Financial Statements, April 30, 1996 (unaudited)
The JPM Advisor Emerging Markets Equity Fund
Statement of Assets and Liabilities at October 31, 1995
Notes to Financial Statement, October 31, 1995
Statement of Assets and Liabilities at April 30, 1996 (unaudited)
Statement of Operations for the six months ended April 30, 1996 (unaudited)
Statement of Changes in Net Assets (unaudited)
Financial Highlights (unaudited)
Notes to Financial Statements, April 30, 1996 (unaudited)
The Emerging Markets Equity Portfolio
Schedule of Investments at October 31, 1995
Statement of Assets and Liabilities at October 31, 1995
Statement of Operations for the fiscal year ended October 31, 1995
Statement of Changes in Net Assets
Supplementary Data
Notes to Financial Statements, October 31, 1995
Schedule of Investments at April 30, 1996 (unaudited)
Statement of Assets and Liabilities at April 30, 1996 (unaudited)
Statement of Operations for the six months ended April 30, 1996 (unaudited)
Statement of Changes in Net Assets (unaudited)
Supplementary Data (unaudited)
Notes to Financial Statements, April 30, 1996 (unaudited)
The JPM Advisor Asia Growth Fund
Statement of Assets and Liabilities at March 24, 1995
Notes to Financial Statement, March 24, 1995
The Asia Growth Portfolio
Schedule of Investments at December 31, 1995
Statement of Assets and Liabilities at December 31, 1995
Statement of Operations for the period April 4, 1995 (commencement of
operations) through December 31, 1995
Statement of Changes in Net Assets
Supplementary Data
Notes to Financial Statements December 31, 1995
The JPM Advisor European Equity Fund
Statement of Assets and Liabilities at March 24, 1995
Notes to Financial Statement, March 24, 1995
The European Equity Portfolio
Schedule of Investments at December 31, 1995
Statement of Assets and Liabilities at December 31, 1995
Statement of Operations for the period March 28, 1995 (commencement of
operations) through December 31, 1995
Statement of Changes in Net Assets
Supplementary Data
Notes to Financial Statements December 31, 1995
The JPM Advisor Japan Equity Fund
Statement of Assets and Liabilities at March 24, 1995
Notes to Financial Statement, March 24, 1995
The Japan Equity Portfolio
Schedule of Investments at December 31, 1995
Statement of Assets and Liabilities at December 31, 1995
Statement of Operations for the period March 28, 1995 (commencement of
operations) through December 31, 1995
Statement of Changes in Net Assets
Supplementary Data
Notes to Financial Statements December 31, 1995
(b) Exhibits
1 Declaration of Trust, as amended.4
1(a) Amendment No. 2 to the Declaration of Trust.4
1(b) Amendment No. 3 to the Amended Declaration of Trust.6
2 By-Laws, as amended.4
6 Distribution Agreement between Registrant and Signature Broker-Dealer
Services, Inc. ("SBDS").1
8 Custodian Contract between Registrant and State Street Bank and Trust
Company ("State Street").2
9(a) Administration Agreement between Registrant and SBDS.5
9(b) Services Agreement between Registrant and Morgan Guaranty Trust Company
of New York.2
9(c) Transfer Agency and Service Agreement between Registrant and State
Street.2
10 Opinion and consent of Sullivan & Cromwell.3
11 Consents of independent accountants.8
13 Purchase Agreements.3
16 Schedule for computation of performance quotations.3
17 Financial Data Schedules.8
18 Powers of Attorney.7
1 Incorporated herein by reference from the Registrant's registration statement
on Form N-1A (the "Registration Statement") as filed initially with the
Securities and Exchange Commission (the "SEC") on October 3, 1994.
2 Incorporated herein by reference from pre-effective amendment no. 1 to the
Registration Statement as filed with the SEC on March 1, 1995.
3 Incorporated herein by reference from pre-effective amendment no. 2 to the
Registration Statement as filed with the SEC on March 28, 1995.
4 Incorporated herein by reference from post-effective amendment no. 1 to the
Registration Statement as filed with the SEC on September 29, 1995.
5 Incorporated herein by reference from post-effective amendment no. 3 to the
Registration Statement as filed with the SEC on March 1, 1996.
6 Incorporated herein by reference from post-effective amendment no. 4 to the
Registration Statement as filed with the SEC on April 17, 1996.
7 Incorporated herein by reference from post-effective amendment no. 5 to the
Registration Statement as filed with the SEC on May 1, 1996.
8 Filed herewith.
ITEM 25. PERSONS CONTROLLED BY OR UNDER COMMON CONTROL WITH REGISTRANT.
Not applicable.
ITEM 26. NUMBER OF HOLDERS OF SECURITIES.
Title of Class: Shares of Beneficial Interest (par value $0.001)
As of April 16, 1996:
The JPM Advisor U.S. Fixed Income: 1
The JPM Advisor International Fixed Income Fund: 2
The JPM Advisor U.S. Equity Fund: 1
The JPM Advisor U.S. Small Cap Equity Fund: 2
The JPM Advisor International Equity Fund: 3
The JPM Advisor Emerging Markets Equity Fund: 4
The JPM Advisor Asia Growth Fund: 4
The JPM Advisor European Equity Fund: 6
The JPM Advisor Japan Equity Fund: 4
The JPM Advisor Diversified Fund: none
ITEM 27. INDEMNIFICATION.
Reference is made to Section 5.3 of Registrant's Declaration of Trust
and Article 4 of Registrant's Distribution Agreement.
Registrant, its Trustees and officers are insured against certain
expenses in connection with the defense of claims, demands, actions, suits, or
proceedings, and certain liabilities that might be imposed as a result of such
actions, suits or proceedings.
Insofar as indemnification for liabilities arising under the Securities
Act of 1933, as amended (the "1933 Act"), may be permitted to directors,
trustees, officers and controlling persons of the Registrant and the principal
underwriter pursuant to the foregoing provisions or otherwise, the Registrant
has been advised that in the opinion of the SEC such indemnification is against
public policy as expressed in the 1933 Act and is, therefore, unenforceable. In
the event that a claim for indemnification against such liabilities (other than
the payment by the Registrant of expenses incurred or paid by a director,
trustee, officer, or controlling person of the Registrant and the principal
underwriter in connection with the successful defense of any action, suite or
proceeding) is asserted against the Registrant by such director, trustee,
officer or controlling person or principal underwriter in connection with the
shares being registered, the Registrant will, unless in the opinion of its
counsel the matter has been settled by controlling precedent, submit to a court
of appropriate jurisdiction the question whether such indemnification by it is
against public policy as expressed in the 1933 Act and will be governed by the
final adjudication of such issue.
ITEM 28. BUSINESS AND OTHER CONNECTIONS OF INVESTMENT ADVISER.
Not applicable.
ITEM 29. PRINCIPAL UNDERWRITERS.
(a) SBDS is the Distributor (the "Distributor") for the shares of the
Registrant. SBDS also serves as the principal underwriter or placement agent for
numerous other registered investment companies.
(b) The following are the directors and officers of the Distributor.
The principal business address of these individuals is 6 St. James Avenue, Suite
900, Boston, Massachusetts 02116 unless otherwise noted.
PHILIP W. COOLIDGE: President, Chief Executive Officer and Director of SBDS.
President of Registrant.
BARBARA M. O'DETTE: Assistant Treasurer of SBDS.
LINWOOD C. DOWNS: Treasurer of SBDS.
JOHN R. ELDER: Assistant Treasurer of SBDS. Treasurer of Registrant.
THOMAS M. LENZ: Assistant Secretary of SBDS. Secretary of Registrant.
MOLLY S. MUGLER: Assistant Secretary of SBDS. Assistant Secretary of Registrant.
LINDA T. GIBSON: Assistant Secretary of SBDS. Assistant Secretary of Registrant.
BETH A. REMY: Assistant Treasurer of SBDS.
ANDRES E. SALDANA: Assistant Secretary of SBDS. Assistant Secretary of the
Registrant.
SUSAN JAKUBOSKI: Assistant Treasurer of SBDS.
JULIE J. WYETZNER: Product Management Officer of SBDS.
KATE B.M. BOLSOVER: Director of SBDS; Signature Financial Group (Europe), Ltd.,
49 St. James's Street, London SW1A 1JT.
ROBERT G. DAVIDOFF: Director of SBDS; CMNY Capital, L.P., 135 East 57th Street
New York, NY 10022.
LEEDS HACKETT: Director of SBDS; Hackett Associates Limited, 1260 Avenue of the
Americas, 12th Floor, New York, NY 10020
LAURENCE B. LEVINE: Director of SBDS; Blair Corporation, 250 Royal Palm Way,
Palm Beach, FL 33480
DONALD S. CHADWICK: Director of SBDS; 4609 Bayard Street, Apartment 411,
Pittsburgh, PA 15213.
(c) Not applicable.
ITEM 30. LOCATION OF ACCOUNTS AND RECORDS.
All accounts, books and other documents required to be maintained by
Section 31(a) of the Investment Company Act of 1940, as amended (the "1940
Act"), and the Rules thereunder will be maintained at the offices of:
Morgan Guaranty Trust Company of New York: 60 Wall Street, New York, New York
10260-0060, 9 West 57th Street, New York, New York 10019 or 522 Fifth Avenue,
New York, New York 10036 (records relating to its functions as shareholder
servicing agent and services agent).
State Street Bank and Trust Company: 1776 Heritage Drive, North Quincy,
Massachusetts 02171 (records relating to its functions as custodian, transfer
agent and dividend disbursing agent).
Signature Broker-Dealer Services, Inc.: 6 St. James Avenue, Boston,
Massachusetts 02116 (records relating to its functions as distributor and
administrator).
Investors Bank and Trust Company: 1 First Canadian Place, Suite 5820, P.O. Box
231, Toronto, Ontario M5X1C8 (accounting records).
ITEM 31. MANAGEMENT SERVICES.
Not applicable.
ITEM 32. UNDERTAKINGS.
(a) If the information called for by Item 5A of Form N-1A is contained in the
latest annual report to shareholders, the Registrant shall furnish each person
to whom a prospectus is delivered with a copy of the Registrant's latest annual
report to shareholders upon request and without charge.
(b) The Registrant undertakes to file a post-effective amendment, using
financials which need not be certified, within four to six months following the
effective date of this registration statement. The financial statements included
in such amendment will be as of and for the time period ended on a date
reasonably close or as soon as practicable to the date of the filing of the
amendment.
(c) The Registrant undertakes to comply with Section 16(c) of the 1940 Act as
though such provisions of the 1940 Act were applicable to the Registrant, except
that the request referred to in the third full paragraph thereof may only be
made by shareholders who hold in the aggregate at least 10% of the outstanding
shares of the Registrant, regardless of the net asset value of shares held by
such requesting shareholders.
<PAGE>
SIGNATURES
Pursuant to the requirements of the Securities Act of 1933 and the
Investment Company Act of 1940, the Registrant certifies that it meets all of
the requirements for effectiveness of this registration statement pursuant to
Rule 485(b) under the Securities Act of 1933, and has duly caused this
post-effective amendment to its registration statement on Form N-1A to be signed
on its behalf by the undersigned, thereto duly authorized in the City of Boston,
and Commonwealth of Massachusetts on the 31st day of May, 1996.
THE JPM ADVISOR FUNDS
By /s/PHILIP W. COOLIDGE
------------------------
Philip W. Coolidge
President
Pursuant to the requirements of the Securities Act of 1933, this
Registration Statement has been signed below by the following persons in the
capacities indicated on May 31, 1996.
/s/PHILIP W. COOLIDGE
- ------------------------
Philip W. Coolidge
President
/s/JOHN R. ELDER
- ------------------------
John R. Elder
Treasurer and Principal Financial and Accounting Officer
JOHN E. BAUMGARDNER, JR.*
- ------------------------------
John E. Baumgardner, Jr.
Trustee
JOHN C. COX*
- ------------------------
John C. Cox
Trustee
JOHN R. RETTBERG*
- ------------------------
John R. Rettberg
Trustee
JOHN F. RUFFLE*
- ------------------------
John F. Ruffle
Trustee
KENNETH WHIPPLE*
- ------------------------
Kenneth Whipple
Trustee
*By /s/THOMAS M. LENZ
------------------------
Thomas M. Lenz
as attorney-in-fact pursuant to a power of attorney previously filed.
<PAGE>
SIGNATURES
Each Portfolio has duly caused this registration statement on Form N-1A
("Registration Statement") of The JPM Advisor Funds (the "Trust") (File No.
33-84798) to be signed on its behalf by the undersigned, thereto duly
authorized, in the City of George Town, Grand Cayman, Cayman Islands, B.W.I.,
on the 30th day of May, 1996.
THE U.S. FIXED INCOME PORTFOLIO, THE SELECTED U.S. EQUITY PORTFOLIO,
THE U.S. SMALL COMPANY PORTFOLIO, THE NON-U.S. EQUITY PORTFOLIO, THE EMERGING
MARKETS EQUITY PORTFOLIO, THE NON-U.S. FIXED INCOME PORTFOLIO AND THE SERIES
PORTFOLIO
By /s/SUSAN JAKUBOSKI
------------------------
Susan Jakuboski
Assistant Secretary and Assistant Treasurer
Pursuant to the requirements of the Securities Act of 1933, the Trust's
Registration Statement has been signed below by the following persons in the
capacities indicated on May 30, 1996.
JOHN R. ELDER*
- ------------------------
John R. Elder
Treasurer and Principal Financial and Accounting Officer of the Portfolios
MATTHEW HEALEY*
- ------------------------
Matthew Healey
Chairman and Chief Executive
Officer of the Portfolios
F.S. ADDY*
- ------------------------
F.S. Addy
Trustee of the Portfolios
WILLIAM G. BURNS*
- ------------------------
William G. Burns
Trustee of the Portfolios
ARTHUR C. ESCHELAUER*
- ------------------------
Arthur C. Eschenlauer
Trustee of the Portfolios
MICHAEL P. MALLARDI*
- ------------------------
Michael P. Mallardi
Trustee of the Portfolios
*By /s/SUSAN JAKUBOSKI
------------------------
Susan Jakuboski,
as attorney-in-fact pursuant to a power of attorney previously filed.
INDEX TO EXHIBITS
Exhibit No. Description of Exhibit
- ----------- ----------------------
EX-99.B11 Consents of independent accountants.
EX-27.1 through
EX-27.3 Financial Data Schedules.
CONSENTS OF INDEPENDENT ACCOUNTANTS
We hereby consent to the use in the Statement of Additional Information
constituting part of this Post-Effective Amendment No. 6 to the registration
statement on Form N-1A (the "Registration Statement") of our reports dated
January 30, 1996, relating to the statements of assets and liabilities of The
JPM Advisor Emerging Markets Equity Fund and The JPM Advisor International
Equity Fund at October 31, 1995, The JPM Advisor International Fixed Income Fund
at September 30, 1995, and The JPM Advisor U.S. Equity Fund and The JPM Advisor
U.S. Small Cap Equity Fund at May 31, 1995, and our reports dated March 24,
1995, relating to the statements of assets and liabilities of The JPM Advisor
Asia Growth Fund, The JPM Advisor European Equity Fund and The JPM Advisor Japan
Equity Fund, at March 24, 1995, which appear in such Statement of Additional
Information, and to the incorporation by reference of our reports into the
Prospectus which constitute part of this Registration Statement.
We hereby consent to the incorporation by reference in the Prospectus and
Statement of Additional Information constituting parts of the Registration
Statement of our reports dated July 26, 1995, relating to the financial
statements and supplementary data of The Selected U.S. Equity Portfolio and The
U.S. Small Company Portfolio appearing the May 31, 1995 Annual Reports, which
are also incorporated by reference into the Registration Statement.
We hereby consent to the incorporation by reference in the Prospectus
and Statement of Additional Information constituting parts of the Registration
Statement of our report dated August 28, 1995, relating to the financial
statements and supplementary data of The Diversified Portfolio appearing in the
June 30, 1995 Annual Report, which is also incorporated by reference into the
Registration Statement.
We hereby consent to the incorporation by reference in the Prospectus and
Statement of Additional Information constituting parts of the Registration
Statement of our report dated November 20, 1995, relating to the financial
statements and supplementary data of The Non-U.S. Fixed Income Portfolio
appearing in the September 30, 1995 Annual Report, which is also incorporated
by reference into the Registration Statement.
We hereby consent to the incorporation by reference in the Prospectus and
Statement of Additional Information constituting parts of the Registration
Statement of our report dated February 27, 1996, relating to the financial
statements and financial highlights of The JPM Advisor U.S. Fixed Income Fund at
October 31, 1995 and our reports dated December 22, 1995, relating to the
financial statements and supplementary data of The U.S. Fixed Income Portfolio,
The Emerging Markets Equity Portfolio, and The Non-U.S. Equity Portfolio
appearing in the October 31, 1995 Annual Reports, which are also incorporated by
reference into the Registration Statement.
We hereby consent to the incorporation by reference in the Prospectus
and Statement of Additional Information constituting parts of the Registration
Statement of our reports dated February 23, 1996, relating to the financial
statements and supplementary data of The Asia Growth Portfolio, The Japan Equity
Portfolio, and The European Equity Portfolio at December 31, 1995, which are
also incorporaed by reference into the Registration Statement.
We also consent to the references to us under the headings "Independent
Accountants" and "Financial Statements" in the Statement of Additional
Information.
/s/PRICE WATERHOUSE LLP
PRICE WATERHOUSE LLP
New York, New York
May 29, 1996
<TABLE> <S> <C>
<ARTICLE> 6
<LEGEND>
THIS SCHEDULE CONTAINS SUMMARY FINANCIAL DATA EXTRACTED FROM THE OCTOBER 31,
1995 ANNUAL REPORT FOR THE JPM ADVISOR U.S. FIXED INCOME FUND AND IS
QUALIFIED IN ITS ENTIRETY BY REFERENCE TO SUCH ANNUAL REPORT.
</LEGEND>
<CIK> 0000931068
<NAME> THE JPM ADVISOR FUNDS
<SERIES>
<NUMBER> 3
<NAME> THE JPM ADVISOR U.S. FIXED INCOME FUND
<S> <C>
<PERIOD-TYPE> 7-MOS
<FISCAL-YEAR-END> OCT-31-1995
<PERIOD-START> MAR-24-1995
<PERIOD-END> OCT-31-1995
<INVESTMENTS-AT-COST> 102,849
<INVESTMENTS-AT-VALUE> 106,380
<RECEIVABLES> 236
<ASSETS-OTHER> 34,509
<OTHER-ITEMS-ASSETS> 0
<TOTAL-ASSETS> 141,125
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<OTHER-ITEMS-LIABILITIES> 35,273
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<SHARES-COMMON-STOCK> 0
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<ACCUMULATED-NII-CURRENT> 127
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<ACCUMULATED-NET-GAINS> 2,130
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<INTEREST-INCOME> 4,366
<OTHER-INCOME> 0
<EXPENSES-NET> 0
<NET-INVESTMENT-INCOME> 4,393
<REALIZED-GAINS-CURRENT> 2,294
<APPREC-INCREASE-CURRENT> 3,531
<NET-CHANGE-FROM-OPS> 10,218
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<DISTRIBUTIONS-OF-INCOME> 4,391
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<NUMBER-OF-SHARES-SOLD> 2
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<NET-CHANGE-IN-ASSETS> 5,852
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<GROSS-EXPENSE> 18,336
<AVERAGE-NET-ASSETS> 104
<PER-SHARE-NAV-BEGIN> 10.00
<PER-SHARE-NII> .44
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<AVG-DEBT-OUTSTANDING> 0
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</TABLE>
<TABLE> <S> <C>
<ARTICLE> 6
<LEGEND>
THIS SCHEDULE CONTAINS SUMMARY FINANCIAL DATA EXTRACTED FROM THE SEMI ANNUAL
REPORT DATED APRIL 30, 1996 FOR THE JPM ADVISOR EMERGING MARKETS EQUITY FUND AND
IS QUALIFIED IN ITS ENTIRETY BY REFERENCE TO SUCH SEMI ANNUAL REPORT.
</LEGEND>
<CIK> 0000931068
<NAME> JPM ADVISOR FUNDS
<SERIES>
<NUMBER> 010
<NAME> JPM ADVISOR EMERGING MARKETS EQUITY FUND
<S> <C>
<PERIOD-TYPE> 6-MOS
<FISCAL-YEAR-END> OCT-31-1996
<PERIOD-START> NOV-22-1995
<PERIOD-END> APR-30-1996
<INVESTMENTS-AT-COST> 1,762,419
<INVESTMENTS-AT-VALUE> 1,849,034
<RECEIVABLES> 36,850
<ASSETS-OTHER> 30,681
<OTHER-ITEMS-ASSETS> 0
<TOTAL-ASSETS> 1,916,565
<PAYABLE-FOR-SECURITIES> 0
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 55,783
<TOTAL-LIABILITIES> 55,783
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 1,770,648
<SHARES-COMMON-STOCK> 154,920
<SHARES-COMMON-PRIOR> 10
<ACCUMULATED-NII-CURRENT> 3,251
<OVERDISTRIBUTION-NII> 0
<ACCUMULATED-NET-GAINS> 268
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> 86,615
<NET-ASSETS> 1,860,782
<DIVIDEND-INCOME> 9,522
<INTEREST-INCOME> 1,323
<OTHER-INCOME> 0
<EXPENSES-NET> 7,019
<NET-INVESTMENT-INCOME> 3,826
<REALIZED-GAINS-CURRENT> 268
<APPREC-INCREASE-CURRENT> 86,615
<NET-CHANGE-FROM-OPS> 90,709
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> 575
<DISTRIBUTIONS-OF-GAINS> 0
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 239,376
<NUMBER-OF-SHARES-REDEEMED> 84,466
<SHARES-REINVESTED> 0
<NET-CHANGE-IN-ASSETS> 154,910
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<ACCUMULATED-GAINS-PRIOR> 0
<OVERDISTRIB-NII-PRIOR> 0
<OVERDIST-NET-GAINS-PRIOR> 0
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<GROSS-EXPENSE> 29,963
<AVERAGE-NET-ASSETS> 724,974
<PER-SHARE-NAV-BEGIN> 10.30
<PER-SHARE-NII> .04
<PER-SHARE-GAIN-APPREC> 1.69
<PER-SHARE-DIVIDEND> .02
<PER-SHARE-DISTRIBUTIONS> 0
<RETURNS-OF-CAPITAL> 0
<PER-SHARE-NAV-END> 12.01
<EXPENSE-RATIO> 1.95
<AVG-DEBT-OUTSTANDING> 0
<AVG-DEBT-PER-SHARE> 0
</TABLE>
<TABLE> <S> <C>
<ARTICLE> 6
<LEGEND>
THIS SCHEDULE CONTAINS SUMMARY FINANCIAL DATA EXTRACTED FROM THE SEMI ANNUAL
REPORT DATED APRIL 30, 1996 FOR THE JPM ADVISOR INTERNATIONAL EQUITY FUND AND IS
QUALIFIED IN ITS ENTIRETY BY REFERENCE TO SUCH SEMI ANNUAL REPORT.
</LEGEND>
<CIK> 0000931068
<NAME> JPM ADVISOR FUNDS
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<NUMBER> 020
<NAME> JPM ADVISOR INTERNATIONAL EQUITY FUND
<S> <C>
<PERIOD-TYPE> 6-MOS
<FISCAL-YEAR-END> OCT-31-1996
<PERIOD-START> NOV-22-1995
<PERIOD-END> APR-30-1996
<INVESTMENTS-AT-COST> 261,045
<INVESTMENTS-AT-VALUE> 272,212
<RECEIVABLES> 47,150
<ASSETS-OTHER> 30,652
<OTHER-ITEMS-ASSETS> 0
<TOTAL-ASSETS> 350,014
<PAYABLE-FOR-SECURITIES> 0
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 80,402
<TOTAL-LIABILITIES> 80,402
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 253,363
<SHARES-COMMON-STOCK> 22,294
<SHARES-COMMON-PRIOR> 10
<ACCUMULATED-NII-CURRENT> 542
<OVERDISTRIBUTION-NII> 0
<ACCUMULATED-NET-GAINS> 4,540
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> 11,167
<NET-ASSETS> 269,612
<DIVIDEND-INCOME> 1,565
<INTEREST-INCOME> 231
<OTHER-INCOME> 0
<EXPENSES-NET> 1,254
<NET-INVESTMENT-INCOME> 542
<REALIZED-GAINS-CURRENT> 3,024
<APPREC-INCREASE-CURRENT> 12,685
<NET-CHANGE-FROM-OPS> 16,251
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> 0
<DISTRIBUTIONS-OF-GAINS> 2
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 30,104
<NUMBER-OF-SHARES-REDEEMED> 7,820
<SHARES-REINVESTED> 0
<NET-CHANGE-IN-ASSETS> 22,284
<ACCUMULATED-NII-PRIOR> 0
<ACCUMULATED-GAINS-PRIOR> 0
<OVERDISTRIB-NII-PRIOR> 0
<OVERDIST-NET-GAINS-PRIOR> 0
<GROSS-ADVISORY-FEES> 0
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> 50,766
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<PER-SHARE-NAV-BEGIN> 10.90
<PER-SHARE-NII> .02
<PER-SHARE-GAIN-APPREC> 1.17
<PER-SHARE-DIVIDEND> 0
<PER-SHARE-DISTRIBUTIONS> 0
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<PER-SHARE-NAV-END> 12.09
<EXPENSE-RATIO> 1.65
<AVG-DEBT-OUTSTANDING> 0
<AVG-DEBT-PER-SHARE> 0
</TABLE>
