<PAGE>
November 22, 1995
To the Shareholder:
The net asset value of your Fund as of October 31, 1995 was $9.61
per share. This represents a 3.9% decrease from $10.00 per share at the start of
the Funds operations on August 3 of this year. During this same period, the
number of shares outstanding in the Fund rose to 1,745,264.
The international equity markets as measured by the Morgan Stanley Capital
International Index for Europe, Australia and the Far East (the EAFE index) were
down 4.5% for this period. Good performance in local currency terms in most
markets that the Fund invests in turned into negative results with the
strengthening of the dollar. This development was particularly pronounced in the
largest international equity market, Japan, which rose 5.5% in Yen, but fell
5.4% in dollars during this period.
The Fund managers investment philosophy is to concentrate on creating a
well diversified high quality stock portfolio in the major economic regions in
the world. In the managers opinion, these stocks show good growth
characteristics, strong balance sheets and market leadership. At the end of
October 1995, almost 95% of the Funds assets were invested in 103 companies in
Japan, the other major economies in the Far East, Europe and Latin America.
The world economic outlook, according to the latest International Monetary Fund
report, is quite positive, with real Gross Domestic Product output growing at
2.8% in the European Union, recovering to 2.2% in 1996 in Japan and remaining at
a very high level of around 8% in Asia outside of Japan. Meanwhile, according to
the International Monetary Funds October 1995 World Economic Outlook, inflation
in the industrialized world is expected to be only 2.5% for consumer prices in
1995 and 1996, even lower than we previously thought. This creates a favorable
environment for corporate earnings, and hopefully, stock markets around the
world.
We would like to thank you for your support as we began managing the 1838
International Equity Fund and we are confident that your Fund is well positioned
to benefit from future worldwide economic improvement.
Sincerely,
/s/Hans van den Berg
Hans van den Berg
Vice President & Portfolio Manager
Past performance is not predictive of future results. Investment returns and
principal values may fluctuate, so that, when redeemed, shares may be worth
more or less than their original cost.
1
<PAGE>
<TABLE>
<CAPTION>
SCHEDULE OF NET ASSETS OCTOBER 31, 1995
Principal
Amount (000s)
or Number Value
Sector of Shares (Note 2)
______ _____________ _______
<S> <C> <C> <C>
COMMON STOCK (92.6%)
AUSTRALIA (1.2%)
Broken Hill Propriety Co. Metals -- Diversified 8,000 $107,905
News Corp. Ltd. Publishing 18,000 90,396
_________
198,301
BRAZIL (1.1%)
Telecomunicacoes Brasileiras Sponsor ADR Telecommunications 4,400 177,276
_________
CHILE (0.9%)
Compania Telecomunicacion Chile ADR Telecommunications 2,000 144,000
_________
FRANCE (4.8%)
Accor Lodging 1,300 154,256
Alcatel Alsthom Telecommunications,
Energy & Electricity 1,700 144,988
Carrefour Supermarche Retail Grocery 300 175,966
Cetelem Financial Services 900 143,371
LVMH (Moet-Hennessy) Wines & Spirits 900 178,846
_________
797,427
_________
GERMANY (5.3%)
Allianz AG Holding Insurance 90 165,156
Bayer AG Chemical 630 166,177
Bayerische Motoren Werke AG Automobile Manufacturer 250 133,394
Deutsche Bank AG Banking 3,400 153,088
Hochtief AG Construction 300 117,422
Viag AG Metal Manufacturer, Energy 400 161,668
_________
896,905
_________
HONG KONG (4.3%)
Cheung Kong Holdings, Ltd. Real Estate 22,000 124,061
China Light & Power Co., Ltd. Utility 20,000 106,574
HSBC Holdings Financial Services 10,000 145,505
Hutchinson Whampoa Real Estate,
Transportation and
Telecomm. 22,000 121,215
Sun Hung Kai Properties Real Estate 15,000 119,799
Swire Pacific, Ltd. (A Shares) General Trading and Air
Transportation 14,000 105,022
_________
722,176
_________
ITALY (1.0%)
Assicurazioni Generali SPA Insurance 7,000 162,885
_________
JAPAN (34.0%)
All Nippon Airways Air Transportation. 17,000 164,877
Asahi Bank, Ltd. Banking 15,000 150,040
Asahi Glass Co., Ltd. Glass Manufacturer 15,000 147,098
Dai-Ichi Kangyo Bank Banking 9,000 152,688
Daiwa House Industries House Manufacturer 11,000 165,044
Fuji Bank, Ltd. Banking 10,000 186,324
Hitachi, Ltd. Electronics 17,000 175,047
_________
</TABLE>
See accompanying notes to financial statements.
2
<PAGE>
<TABLE>
<CAPTION>
SCHEDULE OF NET ASSETS - continued OCTOBER 31, 1995
Principal
Amount (000s)
or Number Value
Sector of Shares (Note 2)
______ ___________ _______
<S> <C> <C> <C>
JAPAN -- CONTINUED
Hoya Corp. Glass Manufacturer 6,000 $176,517
Industrial Bank of Japan Banking 7,000 191,521
Kinki Nippon Railway Railroad Transportation 21,000 162,690
Kirin Brewery Co. Ltd. Brewery 16,000 161,612
Konica Corp. Photography Equipment 25,000 167,937
Kyocera Corp. Bioceramics Manufacturer 2,000 164,357
Marubeni Corp. Miscellaneous Distributor 35,000 170,928
Mitsubishi Estate Co. Ltd. Real Estate 14,000 149,648
Mitsubishi Oil Co. Oil Distributor 17,000 135,369
Mitsubishi Materials Corp. Metals Diversified 35,000 158,572
Mitsubishi Trust & Banking Banking 10,000 140,233
Nippon Meat Packers, Inc. Food Processor 12,000 163,573
Nippon Paper Industries Co. Paper Manufacturer 25,000 172,350
Nippon Steel Corp. Steel Manufacturer 52,000 172,869
Nippon Television Network Broadcasting 800 191,423
Nippondenso Co. Ltd. Electronics 9,000 165,044
Nomura Securities, Co., Ltd. Securities Dealer 9,000 165,044
Obayashi Corp. Construction 23,000 171,644
Ricoh Company, Ltd. Office Equipment 18,000 194,169
Seven-Eleven Retail Grocery 2,000 133,760
Sharp Corp. Electronics 11,000 153,178
Sumitomo Bank Banking 8,000 141,999
Sumitomo Trust & Banking Banking 13,000 150,432
Takeda Chemicals Industries Pharmaceuticals 13,000 183,578
Tokio Marine & Fire Insurance 15,000 154,453
Tokyo Electric Power Electric Utility 6,060 159,266
Toyota Motor Corp. Automobile Manufacturer 8,000 149,059
Wacoal Corp. Textile Manufacturer 14,000 166,123
_________
5,708,466
_________
MALAYSIA (1.7%)
Genting Berhad Resorts -- Plantation 11,000 94,638
Maylayan Banking Banking 13,000 104,695
United Engineers, Ltd. Engineering & Construction 15,000 93,105
_________
292,438
MEXICO (0.9%)
CIFRA SA ADR Retail 150,000 157,031
_________
NETHERLANDS (5.6%)
Akzo N.V. Chemicals 1,250 142,087
Heineken N.V. Brewery 1,200 212,537
International Nederlanden Groep Financial Services 2,961 176,248
Nedlloyd Groep N.V., Koninklijke Transportation 4,300 109,070
Philips Electronics N.V. Electronics 3,300 127,333
Unilever N.V. Food, Detergents 1,300 169,973
_________
937,248
</TABLE>
See accompanying notes to financial statements.
3
<PAGE>
<TABLE>
<CAPTION>
SCHEDULE OF NET ASSETS - continued OCTOBER 31, 1995
Principal
Amount (000s)
or Number Value
Sector of Shares (Note 2)
______ _____________ _______
<S> <C> <C> <C>
REPUBLIC OF KOREA (1.8%)
Pohang Iron & Steel Company, Ltd. ADR Steel Manufacturer 5,500 $141,625
Samsung Electronics GDR* Electronics 2,500 166,875
_________
308,500
_________
SINGAPORE (3.2%)
DBS Land Real Estate 35,000 103,327
IPC Corp. Computer Manufacturer 160,000 109,047
Keppel Corp. Shipbuilding, Real Estate 12,000 98,312
Singapore Press Holdings Publishing 8,000 124,868
United O/S Bank Banking 11,000 96,334
_________
531,888
_________
SPAIN (1.8%)
Empresa Nacional DE Electricidad SA Utility 3,000 148,880
Repsol SA Oil and Gas Exploration 5,000 149,005
_________
297,885
_________
SWEDEN (3.0%)
Aga AB (A Shares) Industrial Gas Production 12,000 160,662
Astra AB (A Shares) Pharmaceuticals 5,000 183,528
Hennes & Mauritz AB (B Shares) Retail Clothing 2,500 163,219
_________
507,409
_________
SWITZERLAND (4.4%)
BBC Brown Boveri Group Ptg.
Certificate Electrical Engineering 160 184,988
Credit Suisse Holding AG Banking 2,000 203,670
Holderbank Finan Glaris (B Shares) Building Materials 200 160,126
Roche Holding AG - Genusshein Pharmaceuticals 25 181,064
_________
729,848
TAIWAN (0.9%)
China Steel Corp.* Steel Manufacturer 8,000 145,440
_________
THAILAND (2.1%)
Land & House Co. Ltd. Real Estate 6,000 96,839
Telecomasia Corp.* Telephone Utility 30,000 88,849
Thai Farmers Bank Co. Banking 11,000 90,956
The Siam Cement Co., Ltd. Building Materials 1,500 81,812
_________
358,456
_________
UNITED KINGDOM (14.6%)
Arjo Wiggins Appleton Ord. plc Paper Manufacturer 39,000 143,875
British Petroleum Co. plc Oil & Gas Exploration
and Distribution 23,000 168,792
BTR plc Miscellaneous Manufacturing 33,000 174,807
Cable & Wireless plc Telecommunications 25,000 163,172
Great Universe Stores plc Retail Clothing 17,000 152,901
Lloyds Bank plc Banking 16,197 198,792
Powergen plc Electric Utility 20,000 179,095
Prudential Corp. plc Insurance 32,000 199,527
Reed International plc Publishing 11,300 171,379
Shell Transport and Trading Co. plc Oil & Gas Exploration
and Distribution 14,000 163,440
</TABLE>
See accompanying notes to financial statements.
4
<PAGE>
<TABLE>
<CAPTION>
SCHEDULE OF NET ASSETS - continued OCTOBER 31, 1995
Principal
Amount (000s)
or Number Value
Sector of Shares (Note 2)
______ _____________ _______
<S> <C> <C> <C>
UNITED KINGDOM -- CONTINUED
Siebe plc Machinery Manufacturer 16,000 $189,816
Smithkline Beecham (A Shares) Pharmaceuticals 19,000 197,848
Tesco plc Retail Grocery 34,000 160,807
TI Group plc Miscellaneous Manufacturing 26,262 179,483
_________
2,443,734
_________
TOTAL COMMON STOCK (COST $16,196,718) 15,517,313
COMMERCIAL PAPER (5.4%)
Ford Motor Credit Corp., 5.76%,
11/01/95 Finance $913 912,665
(COST $912,665)
CORPORATE BONDS (0.9%)
United Micro Electron,
Convertible, Electronics 100 149,880
1.25%, 06/08/04
(COST $150,000)
TOTAL INVESTMENTS (COST $17,259,383) (98.9%) $16,579,858
OTHER ASSETS AND LIABILITIES, NET (1.1%) 183,884
NET ASSETS (100.0%) $16,763,742
____________
</TABLE>
______________________________
* Non-income producing security.
Also the cost for Federal income tax purposes. The aggregate gross
unrealized appreciation in which there was an excess of market value over tax
cost was $637,586, and aggregate gross unrealized depreciation for all
securities in which there was an excess of tax cost over market value was
$1,317,111.
ADR American Depository Receipt
GDR Global Depository Receipt
See accompanying notes to financial statements.
5
<PAGE>
<TABLE>
<CAPTION>
FINANCIAL STATEMENTS
STATEMENT OF ASSETS AND LIABILITIES October 31, 1995
<S> <C> <C>
ASSETS:
Investments, at market (identified cost $17,259,383) (Note 2) $16,579,858
Cash 632,431
Receivables:
Fund shares sold 25,000
Dividends and interest 55,900
Foreign taxes recoverable 1,312
Forward foreign currency exchange contracts sold (Note 6) 2,848
Deferred organizational costs (Note 2) 122,895
Other assets 1,497
----------
Total Assets 17,421,741
LIABILITIES:
Payables:
Investment securities purchased $632,431
Accrued expenses (Note 4) 22,721
Foreign currencies to deliver (Note 6) 2,847
-------
Total Liabilities 657,999
-------
NET ASSETS $16,763,742
===========
NET ASSETS CONSIST OF:
Common stock $1,745
Additional capital paid in 17,387,849
Undistributed net investment income 40,266
Accumulated net realized gain (loss) on:
Investments (23,539)
Foreign currency transactions 36,990
Net unrealized depreciation on:
Investments (679,525)
Translation of assets and liabilities in foreign currencies (44)
Net Assets, for 1,745,264 shares outstanding $16,763,742
---------
Asset Value offering price and redemption price per share
($16,763,742 1,745,264 outstanding shares of common stock,
$0.001 par value) $ 9.61
======
</TABLE>
See accompanying notes to financial statements.
6
<PAGE>
<TABLE>
<CAPTION>
STATEMENT OF OPERATIONS
FOR THE PERIOD AUGUST 3, 1995 (COMMENCEMENT OF OPERATIONS) THROUGH OCTOBER 31, 1995
<S> <C> <C>
INVESTMENT INCOME:
Dividends $73,417
Interest 24,750
------
98,167
Less foreign taxes withheld (8,629)
------
89,538
EXPENSES:
Investment advisory fee (Note 4) $29,563
Administration fee (Note 4) 12,329
Accounting fee (Note 4) 14,794
Custodian fees 5,000
Amortization of organizational expenses (Note 2) 6,375
Legal 8,190
Audit 3,200
Registration fees 7,956
Directors fees and expenses (Note 4) 4,500
Transfer agency fees 5,881
Other 4,541
-----
Total expenses before fee waivers 102,329
Advisory fee waived (Note 4) (29,563)
Administration fee waived (Note 4) (9,247)
Accounting fee waived (Note 4) (11,096)
Transfer agency fee waived (Note 4) (3,151)
------
Total Expenses, net 49,272
------
Net Investment Income 40,266
------
REALIZED AND UNREALIZED GAIN (LOSS) FROM INVESTMENTS AND FOREIGN CURRENCY:
Net realized gain (loss) from:
Investments (23,539)
Foreign currency transactions 36,990
Net unrealized depreciation during the period on:
Investments (679,525)
Translation of assets and liabilities in foreign currencies (44)
-------
Net realized and unrealized loss from investments and foreign currency (666,118)
NET DECREASE IN NET ASSETS RESULTING FROM OPERATIONS $(625,852)
=========
</TABLE>
See accompanying notes to financial statements.
7
<PAGE>
<TABLE>
<CAPTION>
STATEMENT OF CHANGES IN NET ASSETS
FOR THE PERIOD AUGUST 3, 1995 (COMMENCEMENT OF OPERATIONS) THROUGH OCTOBER 31, 1995
<S> <C>
INCREASE (DECREASE) IN NET ASSETS:
Operations:
Net investment income $40,266
Net realized gain (loss) on:
Investments (23,539)
Foreign currency transactions 36,990
Net unrealized depreciation during the period on:
Investments (679,525)
Translation of assets and liabilities in foreign currencies (44)
---------
Net decrease in net assets resulting from operations (625,852)
---------
Increase in net assets from Fund share transactions (Note 5) 17,289,594
Increase in net assets 16,663,742
NET ASSETS:
Beginning of period 100,000
-------
End of period (including undistributed net investment
income of $40,266) $16,763,742
===========
</TABLE>
See accompanying notes to financial statements.
8
<PAGE>
<TABLE>
<CAPTION>
FINANCIAL HIGHLIGHTS
THE FOLLOWING TABLE INCLUDES SELECTED DATA FOR A SHARE OUTSTANDING THROUGHOUT THE
PERIOD FROM AUGUST 3, 1995 (COMMENCEMENT OF OPERATIONS) THROUGH OCTOBER 31, 1995.
<S> <C>
NET ASSET VALUE BEGINNING OF PERIOD $10.00
------
INVESTMENT OPERATIONS:
Net investment income 0.02
Net realized and unrealized loss
on investment and foreign currency
transactions (0.41)
-----
Total from investment operations (0.39)
-----
NET ASSET VALUE - END OF PERIOD $9.61
=====
TOTAL RETURN (3.90)%
Ratios (to average net assets)/Supplemental Data:
Expenses1 1.25%*
Net investment income 1.02%*
Portfolio turnover rate 42.21%*
Net assets at end of period (000 omitted) 16,764
1 Without waivers the annualized ratio of expenses to average daily net assets
would have been 2.60% for the period.
</TABLE>
* Annualized.
See accompanying notes to financial statements.
9
<PAGE>
NOTES TO FINANCIAL STATEMENTS
NOTE 1. DESCRIPTION OF THE FUND - The 1838 Investment Advisors Funds (the
Trust), a diversified, open-end management investment company, was established
as a series Delaware business trust on December 9, 1994, and is registered under
the Investment Company Act of 1940, as amended (the 1940 Act). The Trusts
Agreement and Declaration of Trust permits the Trustees to issue an unlimited
number of shares of beneficial interest. The Trust has established two series:
the 1838 International Equity Fund and the 1838 Small Cap Equity Fund. The 1838
International Equity Fund (the Fund), the only series currently offered by the
Trust, commenced operations on August 3, 1995.
NOTE 2. SIGNIFICANT ACCOUNTING POLICIES.
SECURITY VALUATION - The Funds securities, except investments with remaining
maturities of 60 days or less, are valued at the last quoted sales price on the
securitys principal exchange on that day. If there are no sales of the relevant
security on such day, the security will be valued at the mean between the
closing bid and asked price on that day, if any. Debt securities having a
maturity of 60 days or less are valued at amortized cost. Securities for which
market quotations are not readily available and all other assets will be valued
at their respective fair market value as determined in good faith by, or under
procedures established by, the Board of Trustees.
FEDERAL INCOME TAXES - The Fund intends to qualify annually and elect to be
treated as a regulated investment company under Subchapter M of the Internal
Revenue Code of 1986 and to distribute all of its taxable income to its
shareholders. Therefore, no federal income or excise tax provision is required.
At October 31, 1995, the Fund had a net tax basis capital loss carryforward
available to offset future capital gains of approximately $24,000, which will
expire on October 31, 2003.
DIVIDENDS AND CAPITAL GAIN DISTRIBUTIONS - Distributions of net investment
income and net realized gains are determined in accordance with income tax
regulations which may differ from generally accepted accounting principles.
These differences are primarily due to differing treatments for foreign currency
transactions. These distributions will be made annually in December. Additional
distributions may be made to the extent necessary to avoid the payment of a 4%
excise tax.
DEFERRED ORGANIZATIONAL COSTS - Costs incurred by the Fund in connection with
the initial registration and public offering of shares have been deferred and
are being amortized on a straight-line basis over a five-year period beginning
on the date that the Fund commenced operations.
FOREIGN CURRENCY TRANSLATIONS - The books and records of the Fund are maintained
in U.S. dollars. Foreign currency amounts are translated into U.S. dollars on
the following basis:
(i) market value of investment securities, assets and liabilities at
the daily rates of exchange, and
(ii) purchases and sales of investment securities, dividend and
interest income and certain expenses at the rates of exchange
prevailing on the respective dates of such transactions.
The Fund does not isolate that portion of the results of operations resulting
from changes in foreign exchange rates on investments from the fluctuations
arising from changes in market prices of securities held. Such fluctuations are
included with the net realized and unrealized gain or loss from investments.
10
<PAGE>
NOTE 2. SIGNIFICANT ACCOUNTING POLICIES - CONTINUED
Reported net realized foreign exchange gains or losses arise from
sales and maturities of short-term securities, sales of foreign currencies,
currency gains or losses realized between the trade and settlement dates on
securities transactions, the difference between the amounts of dividends,
interest, and foreign withholding taxes recorded on the Funds books, and the
U.S. dollar equivalent of the amounts actually received or paid. Net unrealized
foreign exchange gains and losses arise from changes in the value of assets and
liabilities other than investments in securities at the end of the fiscal
period, resulting from changes in exchange rates.
FORWARD FOREIGN CURRENCY EXCHANGE CONTRACTS - In connection with
portfolio purchases and sales of securities denominated in a foreign currency,
the Fund may enter into forward foreign currency exchange contracts.
Additionally, the Fund may enter into these contracts to hedge certain foreign
currency assets. Foreign currency exchange contracts are recorded at market
value. Certain risks may arise upon entering into these contracts from the
potential inability of counterparties to meet the terms of their contracts.
Realized gains or losses arising from such transactions are included in net
realized gain (loss) from foreign currency transactions.
OTHER - Investment security transactions are accounted for on a
trade date basis. The Fund uses the specific identification method for
determining realized gain or loss on investments for both financial and federal
income tax reporting purposes. Dividend income and distributions to shareholders
are recorded on the ex-dividend date. Interest income is recorded on an accrual
basis.
NOTE 3. PURCHASES AND SALES OF INVESTMENT SECURITIES - Purchases and sales of
investment securities (excluding short-term investments) for the period ended
October 31, 1995 were $17,988,756 and $1,618,499, respectively.
NOTE 4. ADVISORY FEE AND OTHER TRANSACTIONS WITH AFFILIATES - The
Trust, on behalf of the Fund, employs 1838 Investment Advisors, L.P. (the
Investment Adviser), a Delaware limited partnership and registered investment
adviser under the 1940 Act, to furnish investment advisory services to the Fund
pursuant to an Investment Advisory Agreement with the Trust. The Investment
Adviser supervises the investments of the assets of the Fund in accordance with
its objective, policies and restrictions. The Funds assets are managed by
MeesPierson 1838 Investment Advisors (the Sub-Adviser) pursuant to a
Sub-Investment Advisory Agreement between the Investment Adviser and the
Sub-Adviser. The Sub-Adviser is compensated by the Investment Adviser for the
services it provides.
The Fund pays the Investment Adviser a monthly fee at the annual
rate of 0.75% of the average daily net assets of the Fund. The Investment
Adviser has voluntarily agreed to waive its advisory fee or reimburse the Fund
monthly to the extent that the Funds total operating expenses will exceed 1.25%
of the average daily net assets of the Fund. This undertaking may be rescinded
at any time in the future. The advisory fee for the period ended October 31,
1995 amounted to $29,563, all of which was waived.
Rodney Square Management Corporation (RSMC), a wholly owned
subsidiary of Wilmington Trust Company (WTC), serves as Administrator to the
Fund pursuant to an Administration Agreement with the Trust. As Administrator,
RSMC is responsible for services such as financial reporting, compliance
monitoring and corporate management. For the services provided, RSMC receives a
monthly administration fee from the Trust at the annual rate of 0.15% of the
average daily net assets of the Trust on the first $50 million; 0.10% of such
assets in excess of $50 million to $100 million; 0.07% of such assets in excess
of $100 million to $200 million; and 0.05% of such assets in excess of $200
million. Each series pays its pro-rata portion based upon total Trust assets.
Such fees are subject to a minimum fee of $50,000 per year for one series and
$15,000 minimum per year for each additional series.
11
<PAGE>
NOTE 4. ADVISORY FEE AND OTHER TRANSACTIONS WITH AFFILIATES - CONTINUED
RSMC has agreed to waive a portion of its fees. For the period
ended October 31, 1995, RSMCs administration fees amounted to $12,329, of which
$9,247 was waived. At October 31, 1995 Administration fees payable to RSMC
amounted to $3,082.
Rodney Square Distributors, Inc. (RSD), a wholly owned subsidiary of WTC, has
been engaged pursuant to a Distribution Agreement with the Trust to assist in
securing purchasers for shares of the Fund. RSD also directly, or through its
affiliates, provides investor support services. RSD receives no compensation for
distribution of shares of the Fund, except for reimbursement of out-of-pocket
expenses.
RSMC serves as Accounting Agent to the Fund. As Accounting Agent, RSMC
determines the Funds net asset value per share and provides accounting services
to the Fund pursuant to an Accounting Services Agreement with the Trust. At
October 31, 1995, Accounting fees payable to RSMC amounted to $3,698.
RSMC also serves as the Funds transfer agent pursuant to a Transfer Agency
Agreement with the Trust. For these services, RSMC receives a monthly fee
computed on the basis of the number of shareholder accounts that the Transfer
Agent maintains for the Fund during the month, and is reimbursed for out-of-
pocket expenses. At October 31, 1995, Transfer Agent fees payable to RSMC
amounted to $2,730.
The Trustees of the Trust who are interested persons of the Trust, the
Investment Adviser or its affiliates and all personnel of the Trust or the
Investment Adviser performing services related to research, statistical and
investment activities are paid by the Investment Adviser or its affiliates. The
fees and expenses payable to the non-interested Trustees amounted to $4,500 on
October 31, 1995.
NOTE 5. FUND SHARE TRANSACTIONS - At October 31, 1995, there were an unlimited
number of shares of beneficial interest with a $0.001 par value, authorized.
Transactions in shares of the Fund for the period from August 3, 1995
(commencement of operations) through October 31, 1995 were as follows:
<TABLE>
SHARES AMOUNT
------ ------
<S> <C> <C>
Shares sold 1,742,436 $17,357,801
Shares redeemed (7,172) (68,207)
--------- -----------
Net increase 1,735,264 $17,289,594
===========
Shares outstanding:
Beginning of period 10,000
---------
End of period 1,745,264
=========
</TABLE>
NOTE 6. COMMITMENTS - As of October 31, 1995, the Fund had entered into a
forward foreign currency exchange contract which contractually
obligates the Fund to deliver currencies at specified future dates. The open
contract is as follows:
<TABLE>
NET UNREALIZED
APPRECIATION
CONTRACTS TO DELIVER IN EXCHANGE FOR SETTLEMENT DATE U.S. $
-------------------- --------------- --------------- ------
<S> <C> <C> <C>
British Pound 1,806 U.S. $2,848 11/02/95 1
</TABLE>
12
<PAGE>
REPORT OF INDEPENDENT ACCOUNTANTS
TO THE SHAREHOLDERS AND BOARD OF TRUSTEES OF
THE 1838 INVESTMENT ADVISORS FUNDS
We have audited the accompanying statement of assets and
liabilities, including the schedule of net assets of the 1838 Investment
Advisors Funds, comprised of the 1838 International Equity Fund, as of October
31, 1995 and the related statements of operations, changes in net assets and the
financial highlights for the period August 3, 1995 (commencement of operations)
through October 31, 1995. These financial statements and financial highlights
are the responsibility of the Funds management. Our responsibility is to express
an opinion on these financial statements and financial highlights based upon on
our audit.
We conducted our audit in accordance with generally accepted auditing standards.
Those standards require that we plan and perform the audit to obtain reasonable
assurance about whether the financial statements and financial highlights are
free of material misstatement. An audit includes examining, on a test basis,
evidence supporting the amounts and disclosures in the financial statements. Our
procedures included confirmation of securities owned as of October 31, 1995, by
correspondence with the custodian and brokers. An audit also includes assessing
the accounting principles used and significant estimates made by management, as
well as evaluating the overall financial statement presentation. We believe that
our audit provides a reasonable basis for our opinion.
In our opinion, the financial statements and financial highlights referred to
above present fairly, in all material respects, the financial position of the
1838 International Equity Fund as of October 31, 1995, the results of its
operations, the changes in its net assets and its financial highlights for the
period August 3, 1995 (commencement of operations) through October 31, 1995 in
conformity with generally accepted accounting principles.
COOPERS & LYBRAND L.L.P.
2400 Eleven Penn Center
Philadelphia, Pennsylvania
November 30, 1995
13
<PAGE>
TAX INFORMATION
During the period ended October 31, 1995, the Fund recognized
$36,568 of foreign source income.
In January 1996, shareholders will receive federal income tax
information on all distributions paid to their accounts in the calendar year
1995. Please consult a tax advisor if you have any questions about federal or
state income tax laws, or how to prepare your tax return.
14
<PAGE>
TRUSTEES
W. THACHER BROWN
CHARLES D. DICKEY, JR.
FRANK B. FOSTER, III
GEORGE W. GEPHART, JR.
ROBERT P. HAUPTFUHRER
OFFICERS
W. THACHER BROWN
President
GEORGE W. GEPHART, JR.
Vice President
JOHANNES B. van den BERG
Vice President
ANNA M. BENCROWSKY
Vice President, Treasurer
and Assistant Secretary
JOSEPH V. DEL RASO, ESQ.
Secretary
JOHN J. KELLEY
Assistant Treasurer
LAURIE V. BROOKS
Assistant Secretary
INVESTMENT ADVISOR
1838 INVESTMENT ADVISORS, L.P.
FIVE RADNOR CORPORATE CENTER
SUITE 320
100 MATSONFORD ROAD
RADNOR, PA 19087
SUB-ADVISOR
MEESPIERSON 1838 INVESTMENT ADVISORS
FIVE RADNOR CORPORATE CENTER
SUITE 320
100 MATSONFORD ROAD
RADNOR, PA 19087
CUSTODIAN
BANKERS TRUST COMPANY
280 PARK AVENUE
NEW YORK, NY 10017
COUNSEL
STRADLEY, RONON, STEVENS & YOUNG
2600 ONE COMMERCE SQUARE
PHILADELPHIA, PA 19103
AUDITORS
COOPERS & LYBRAND L.L.P.
2400 ELEVEN PENN CENTER
PHILADELPHIA, PA 19103
1838
INTERNATIONAL EQUITY FUND
FIVE RADNOR CORPORATE CENTER,
SUITE 320
100 MATSONFORD ROAD
RADNOR, PA 19087
Annual Report
October 31, 1995
