<PAGE>
THE ASIA GROWTH PORTFOLIO
SCHEDULE OF INVESTMENTS
DECEMBER 31, 1995
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
DESCRIPTION SHARES VALUE
- --------------------------------- --------- -----------
<S> <C> <C>
COMMON STOCKS (93.3%)
<CAPTION>
CHINA (1.4%)
<S> <C> <C>
Huaneng Power International Inc
(Spon. ADR, Series N)
(Utilities & Telecom)*.........
29,000 $ 416,875
Shanghai Dajiang
(Multi-Industry)...............
150,000 71,100
Shanghai Tyre and Rubber Co.
Ltd. (Metals, Materials &
Paper).........................
1,435,800 295,775
Shanghai Yaohua Pilkington Glass
Co. Ltd. (Series B) (Building &
Contractors)...................
510,000 448,800
-----------
1,232,550
-----------
<CAPTION>
HONG KONG (33.2%)
<S> <C> <C>
Cathay Pacific Airways
(Transport & Trade Services)...
255,000 389,137
Cheung Kong Holdings Ltd.
(Multi-Industry)...............
660,000 4,020,175
China Light & Power Co. Ltd.
(Utilities & Telecom)..........
260,000 1,197,026
Citic Pacific Ltd.
(Multi-Industry)...............
833,000 2,849,382
Dong Fang Electrical Machinery
Co. (Electronics)..............
984,000 264,054
Guangdong Electric Power
(Utilities & Telecom)*.........
500,000 239,250
Hang Seng Bank (Banking &
Finance).......................
147,500 1,320,967
Henderson Land Development Co.
(Building & Contractors).......
236,000 1,422,257
Hong Kong Electric Holdings Ltd.
(Utilities & Telecom)..........
450,000 1,475,267
Hong Kong Telecommunications
Ltd. (Utilities & Telecom).....
1,648,800 2,942,572
HSBC Holdings Public Ltd. Co.
(Banking & Finance)............
149,303 2,259,095
Hutchison Whampoa Ltd. (Multi-
Industry)......................
357,000 2,174,549
Johnson Electrical Holdings Ltd.
(Electronics)..................
451,000 804,888
Luoyang Glass Co. Ltd. (Building
& Contractors).................
1,070,000 275,370
New World Development Co. Ltd.
(Real Estate)..................
600,000 2,614,937
Shanghai Haixin Shipping Co.
Ltd. (Transport & Trade
Services)......................
2,700,000 181,571
Sing Tao Holdings (Media &
Leisure).......................
672,000 260,718
<CAPTION>
DESCRIPTION SHARES VALUE
- --------------------------------- --------- -----------
HONG KONG (CONTINUED)
<S> <C> <C>
Sun Hung Kai Properties, Ltd.
(Real Estate)..................
103,000 $ 842,515
Swire Pacific Ltd. (Banking &
Finance).......................
123,500 958,293
Television Broadcasts Ltd.
(Media & Leisure)..............
186,000 662,696
Tianjin Bohai Chemical Ind.
(Chemicals)....................
1,000,000 69,835
Vincent Intertrans Ltd.
(Transport & Trade Services)...
764,000 36,557
Wharf (Holdings) Ltd. (Real
Estate)........................
90,000 299,709
Yizheng Chemical Fibre Co. Ltd.
(Chemicals)....................
2,487,000 559,635
Yue Yuen Industrial Holdings
(Consumer).....................
1,416,000 375,403
Zhenhai Refining and Chemical
Co. (Chemicals)................
2,100,000 393,792
-----------
28,889,650
-----------
<CAPTION>
INDONESIA (5.3%)
<S> <C> <C>
Asahimas Flat Glass Co. (Metals,
Materials & Paper)*............
193,000 187,809
Bank Niaga (Banking &
Finance).......................
120,000 229,609
Bank Rama (Banking & Finance)...
168,000 121,234
Central Proteina Prima (Food)...
125,500 170,151
Fajar Surya Wisea (Metals,
Materials & Paper).............
300,000 141,045
Hanjaya Mandala Sampoerna
(Food).........................
50,000 520,446
International Nickel Indonesia
(Metals, Materials & Paper)....
210,000 404,111
Inti Indorayon Utama (Metals,
Materials & Paper).............
112,000 117,560
Japfa Comfeed Indonesia
(Food).........................
351,500 172,944
Kabelmetal Indonesia
(Technology)...................
200,000 164,006
Pabris Kertas Tjiwi Kimia
(Metals, Materials & Paper)....
223,692 205,446
Pan Indonesia Bank (Banking &
Finance).......................
295,125 264,599
Perusahaan Otomobil Nasional
Berhad (Transport & Trade
Services)......................
16,000 584,000
Putra Surya Perkasa (Real
Estate)........................
780,000 298,491
Sekar Bumi (Food)...............
170,000 148,699
Semen Gresik (Building &
Contractors)...................
114,000 319,090
Tigaraksa Satria
(Multi-Industry)...............
75,000 262,410
</TABLE>
The Accompanying Notes are an Integral Part of the Financial Statements.
7
<PAGE>
THE ASIA GROWTH PORTFOLIO
SCHEDULE OF INVESTMENTS (CONTINUED)
DECEMBER 31, 1995
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
DESCRIPTION SHARES VALUE
- --------------------------------- --------- -----------
INDONESIA (CONTINUED)
<S> <C> <C>
United Tractors (Metals,
Materials & Paper).............
140,000 $ 263,285
-----------
4,574,935
-----------
<CAPTION>
MALAYSIA (18.4%)
<S> <C> <C>
Carlsberg Brewery Malaysia
Berhad (Food)..................
7,000 32,799
CI Holdings Berhad (Building &
Contractors)...................
90,000 323,365
Commerce Asset-Holding Berhad
(Banking & Finance)............
254,000 1,280,151
Edaran Otomobil Nasional Berhad
(Capital Goods)................
57,000 428,673
Ekovest Berhad (Building &
Contractors)...................
80,000 258,298
Guiness Anchor Berhad (Food)....
130,000 243,651
Hong Leong Industries Berhad
(Building & Contractors).......
74,000 393,354
IJM Corporation Berhad (Building
& Contractors).................
188,000 299,059
Island & Peninsular Berhad (Real
Estate)........................
80,000 193,724
Land & General Berhad (Metals,
Materials & Paper).............
158,000 342,166
Leader Universal Holdings Berhad
(Electronics)..................
125,000 285,467
Malayan Banking Berhad (Banking
& Finance).....................
150,000 1,263,929
Malaysian Assurance Alliance
Berhad (Insurance).............
130,750 592,048
Malaysian International Shipping
Corp. Berhad (Transport & Trade
Services)......................
200,000 523,684
Malaysian Oxygen Berhad
(Chemicals)....................
241,500 912,864
Malaysian Tobacco Co. Berhad
(Food).........................
155,000 220,932
Maruichi Malaysian Steel Tube
Berhad (Metals, Materials &
Paper).........................
118,000 439,068
Matsushita Electric Co.
(Utilities & Telecom)..........
27,000 230,697
Negara Properties (Malaysia)
Berhad (Real Estate)...........
48,000 154,034
New Straits Times Press Berhad
(Media & Leisure)..............
342,000 1,144,623
<CAPTION>
DESCRIPTION SHARES VALUE
- --------------------------------- --------- -----------
MALAYSIA (CONTINUED)
<S> <C> <C>
Rashid Hussain Berhad (Banking &
Finance).......................
186,000 $ 556,601
Resorts World Berhad (Hotels &
Restaurants)...................
116,000 621,176
Rothmans of Pall Mall (Malaysia)
Berhad (Food)..................
72,000 592,511
Shell Refinery (Malaysia) Berhad
(Oil & Gas)....................
75,000 217,053
Sime Darby Berhad (Multi-
Industry)......................
650,000 1,727,566
Sime U.E.P. Properties Berhad
(Real Estate)..................
431,000 678,820
Sistem Televisyen Malaysia
Berhad (Media & Leisure).......
107,000 385,498
Technology Resources Industries
Berhad (Multi-Industry)*.......
174,000 513,840
Telekom Malaysia Berhad
(Utilities & Telecom)..........
73,000 569,122
Tenaga Nasional Berhad
(Utilities & Telecom)..........
153,000 602,433
-----------
16,027,206
-----------
<CAPTION>
PHILIPPINES (4.0%)
<S> <C> <C>
Aboitiz Equity Ventures Inca
(GDS represents 100 ordinary
shares) (Banking & Finance)*...
190,800 36,369
Bankard Inc. (Banking &
Finance)*......................
550,000 201,296
Fillinvest Land Inc. (Building &
Contractors)*..................
780,000 249,790
House of Investments Inc.
(Multi-Industry)...............
820,000 175,067
International Container Systems
Inc. (Manufacturing)*..........
482,700 253,036
JG Summit Holdings (Multi-
Industry)......................
852,000 233,870
Manila Electric Company
(Utilities & Telecom)..........
27,000 220,282
Metro Bank & Trust (Banking &
Finance).......................
10,000 194,434
Petron Corp. (Oil & Gas)........
1,218,250 627,006
Philippine National Bank
(Banking & Finance)*...........
31,628 349,681
Picop Resources (Metals,
Materials & Paper).............
400,000 96,073
Philipino Telephone Corp.
(Utilities & Telecom)..........
27,000 27,278
</TABLE>
The Accompanying Notes are an Integral Part of the Financial Statements.
8
<PAGE>
THE ASIA GROWTH PORTFOLIO
SCHEDULE OF INVESTMENTS (CONTINUED)
DECEMBER 31, 1995
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
DESCRIPTION SHARES VALUE
- --------------------------------- --------- -----------
PHILIPPINES (CONTINUED)
<S> <C> <C>
Republic Glass Holding Corp.
(Building & Contractors)*......
210,000 $ 48,037
San Miguel Corp. (Food).........
80,000 272,970
SM Prime Holdings (GDS
represents 50 ordinary shares)
(Real Estate)*.................
21,320 287,820
Steniel Manufacturing Corp.
(Metals, Materials & Paper)....
1,510,000 241,784
-----------
3,514,793
-----------
<CAPTION>
SINGAPORE (8.8%)
<S> <C> <C>
Acma Ltd. (Technology)..........
117,600 390,753
Development Bank Singapore
(Banking & Finance)............
69,000 858,537
Fraser & Neave Ltd. (Food)......
25,000 318,134
Jurong Engineering (Capital
Goods).........................
33,000 192,471
Jurong Shipyard Ltd. (Transport
& Trade Services)..............
32,000 246,589
Keppel Corporation Ltd.
(Transport & Trade Services)...
40,000 356,310
NatSteel Ltd. (Metals, Materials
& Paper).......................
147,500 302,404
Overseas Chinese Bank (Banking &
Finance).......................
76,000 951,007
Sembawang Corp. Ltd. (Transport
& Trade Services)..............
74,000 410,675
Sembawang Maritime Ltd.
(Transport & Trade Services)...
58,000 184,518
Singapore Airlines Ltd.
(Transport & Trade Services)...
138,000 1,287,805
Singapore Press Holdings (Media
& Leisure).....................
45,000 795,334
United Overseas Bank Ltd.
(Banking & Finance)............
110,310 1,060,598
United Overseas Land (Building &
Contractors)...................
150,000 285,260
-----------
7,640,395
-----------
<CAPTION>
SOUTH KOREA (3.7%)
<S> <C> <C>
Dongbu Insurance (Insurance)....
8,030 300,185
Hana Bank (Banking & Finance)...
4,900 99,169
Hansol Paper Co ( GDS represents
1/2 share) (Metals, Materials &
Paper).........................
17,132 316,942
Korea Electric Power Corp.
(Utilities & Telecom)..........
18,000 714,663
<CAPTION>
DESCRIPTION SHARES VALUE
- --------------------------------- --------- -----------
SOUTH KOREA (CONTINUED)
<S> <C> <C>
Korea Electric Power Corp.
(Spon. ADR represents 1/2
non-voting shares) (Utilities &
Telecom).......................
10,000 $ 265,000
Oriental Fire & Marine Insurance
(Insurance)*...................
4,200 150,512
Pohang Iron & Steel Ltd.
(Metals, Materials & Paper)....
2,100 137,248
Pohang Iron & Steel Ltd. (ADS
represents 1/4 ordinary shares)
(Metals, Materials & Paper)....
9,900 216,563
Samsung Electronics (GDS
represents 1/2 non-voting
common shares)
(Electronics)*.................
15,000 881,250
Samsung Electronics (GDS
represents 1/2 non-voting new
common shares)
(Electronics)*.................
2,374 128,196
Samsung Electronics (GDS
represents 1/2 voting new
common shares)
(Electronics)*.................
146 14,016
Samsung Electronics (GDS
represents 1/2 voting common
shares) (Electronics)*.........
226 21,018
-----------
3,244,762
-----------
<CAPTION>
TAIWAN (5.3%)
<S> <C> <C>
Asia Cement Corp. (GDS
represents common shares)
(Building & Contractors).......
42,718 704,846
China Steel Corp. (GDS
represents 20 shares) (Metals,
Materials & Paper).............
88,000 1,529,000
Hocheng Group Corp. (GDS
represents 5 ordinary shares)
(Building & Contractors).......
29,936 284,392
Hocheng Group Corp. (GDS
represents 5 ordinary shares,
144A) (Building &
Contractors)...................
11,177 109,535
Microelectronics Technology Inc.
(GDS represents 5 ordinary
shares) (Utilities &
Telecom)*......................
40,000 230,000
President Enterprises (GDR
represents 10 ordinary shares)
(Food)*........................
27,189 299,079
Siliconware Precision Ind. (GDS
represents 5 ordinary shares)
(Technology)*..................
12,000 198,000
</TABLE>
The Accompanying Notes are an Integral Part of the Financial Statements.
9
<PAGE>
THE ASIA GROWTH PORTFOLIO
SCHEDULE OF INVESTMENTS (CONTINUED)
DECEMBER 31, 1995
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
DESCRIPTION SHARES VALUE
- --------------------------------- --------- -----------
TAIWAN (CONTINUED)
<S> <C> <C>
Tuntex Distinct (represents 1
GDS and 10 shares) (Multi -
Industry)*.....................
124,000 $ 837,000
Yageo Corp. (GDR represents 5
ordinary shares)
(Electronics)*.................
42,879 364,472
Yageo Corp. (GDR represents 5
ordinary shares,144A)
(Electronics)*.................
3,560 30,260
-----------
4,586,584
-----------
<CAPTION>
THAILAND (13.2%)
<S> <C> <C>
Advanced Info Service Public Co.
(Utilities & Telecom)..........
80,900 1,419,524
Bangkok Bank Co. Ltd. (Banking &
Finance).......................
100,000 1,214,768
Bangkok Expressway Public Co.
Ltd. (Transport & Trade
Services)*.....................
100,000 160,778
Banpu Public Co. Ltd. (Metals,
Materials & Paper).............
10,700 230,226
Central Pattana Public Co. Ltd.
(Real Estate)..................
64,500 215,085
Charoong Thai Wireless & Cable
Co. Ltd. (Utilities &
Telecom).......................
76,000 159,905
Dhana Siam Finance and
Securities Co. (Banking &
Finance).......................
45,000 257,245
Inoue Rubber (Thailand) Co.
(Metals, Materials & Paper)....
2,200 12,227
Jasmine Int'l Public Co.
(Utilities & Telecom)..........
173,000 885,947
Land & House Co. Ltd. (Real
Estate)........................
14,000 230,091
MDX Co. Ltd. (Real Estate)......
55,700 84,025
Modernform Group Public Co. Ltd.
(Manufacturing)................
174,700 166,447
Phatra Thanakit Co. Ltd.
(Banking & Finance)............
50,000 428,742
Saha-Union Corp. Ltd.
(Manufacturing)................
200,000 226,280
Savairiya Steel Industry
(Metals, Materials & Paper)....
200,000 265,979
Siam Cement Public Co. Ltd.
(Building & Contractors).......
16,000 886,701
Siam Commercial Bank Co. Ltd.
(Banking & Finance)............
30,000 395,395
Swedish Motors Public Co. Ltd.
(Capital Goods)................
54,000 233,664
<CAPTION>
DESCRIPTION SHARES VALUE
- --------------------------------- --------- -----------
THAILAND (CONTINUED)
<S> <C> <C>
TelecomAsia Corp. (Utilities &
Telecom).......................
438,000 $ 1,330,171
Thai Farmers Bank Ltd. (Banking
& Finance).....................
144,600 1,458,055
Thai Petrochemical Industry
Public Co. Ltd. (Chemicals)....
140,000 305,677
Tipco Asphalt Co. Ltd. (Building
& Contractors).................
58,900 329,690
Total Access Communication
(Utilities & Telecom)*.........
85,000 552,500
-----------
11,449,122
-----------
Total Common Stocks (cost
$78,634,712)................
81,159,997
-----------
PREFERRED STOCKS (0.6%)
<CAPTION>
PHILIPPINES (0.6%)
<S> <C> <C>
Philippine Long Distance
Telephone Co. (GDS represents 1
Series 2 Cnv Pfd ) (Utilities &
Telecom) (Cost $532,650).......
15,900 492,900
<CAPTION>
PRINCIPAL
AMOUNT VALUE
--------- -----------
<S> <C> <C>
CONVERTIBLE BONDS (1.5%)
<CAPTION>
HONG KONG (0.4%)
<S> <C> <C>
Regal Hotels International
(5.25% Cnv Bds, due 12/13/08)
(Hotels & Restaurants).........
$ 350,000 $ 311,500
-----------
<CAPTION>
SOUTH KOREA (0.4%)
<S> <C> <C>
Ssangyong Oil Refinery (3.75%
Cnv Bds, due 12/31/08) (Oil &
Gas)...........................
305,000 327,113
-----------
<CAPTION>
TAIWAN (0.7%)
<S> <C> <C>
U-Ming Marine Transport Corp.
(1.50% Cnv Bds, due 2/07/01)
(Transport & Trade Services)...
240,000 225,900
United Micro Electronics (1.25%
Cnv Bds, due 6/08/04)
(Technology)...................
109,000 137,340
Walsin Lihwa Corp. (3.25% Cnv
Bds, due 6/16/04)
(Technology)...................
300,000 298,875
-----------
662,115
-----------
Total Convertible Bonds (cost
$1,428,740).................
1,300,728
-----------
</TABLE>
The Accompanying Notes are an Integral Part of the Financial Statements.
10
<PAGE>
THE ASIA GROWTH PORTFOLIO
SCHEDULE OF INVESTMENTS (CONTINUED)
DECEMBER 31, 1995
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
DESCRIPTION WARRANTS VALUE
- --------------------------------- --------- -----------
WARRANTS (0.5 %)*
SINGAPORE (0.5%)
<S> <C> <C>
United Overseas Land Ltd.
(Warrants Expire 6/9/97) (Real
Estate) (cost $383,955)........
520,000 441,145
-----------
<CAPTION>
PRINCIPAL
AMOUNT
---------
SHORT TERM INVESTMENT (3.2%)
EURO-DOLLAR TIME DEPOSIT (3.2%)
<S> <C> <C>
State Street Cayman Islands
4.75% (Banking & Finance) dated
12/31/95 due 1/2/96............
$2,786,000 2,786,000
-----------
(cost $2,786,000)............
2,786,000
-----------
Total Investments (cost
$83,766,057) (99.1%) (a).......
86,180,770
Other Assets Net of Liabilities
(0.9%).........................
800,618
-----------
Total Net Assets (100.0%).......
$86,981,388
-----------
-----------
</TABLE>
(a) Based on the cost of investments of $83,786,990 for Federal Income Tax
purposes at December 31, 1995, the aggregate gross unrealized appreciation
and depreciation was $8,578,485 and $6,184,705, respectively, resulting in
net unrealized appreciation of $2,393,780.
* -- Non-income producing securities.
ADS -- American Depositary Shares.
Spon. ADR -- Sponsored ADR.
GDR -- Global Depositary Receipt.
GDS -- Global Depositary Shares.
144A -- Securities restricted for resale to Qualified Institutional Buyers.
<TABLE>
<CAPTION>
INDUSTRY DIVERSIFICATION PERCENT OF
(UNAUDITED) PORTFOLIO
- ------------------------------------------ -----------
<S> <C>
Banking & Finance......................... 21.52%
Utilities & Telecom....................... 16.21%
Multi - Industry.......................... 14.93%
Building & Contractors.................... 7.70%
Real Estate............................... 7.36%
Metals, Materials & Paper................. 6.43%
Transport & Trade Services................ 5.32%
Media & Leisure........................... 4.01%
Food...................................... 3.47%
Electronics............................... 3.24%
Chemicals................................. 2.60%
Technology................................ 1.38%
Oil & Gas................................. 1.36%
Insurance................................. 1.21%
Hotels & Restaurants...................... 1.08%
Capital Goods............................. 0.99%
Manufacturing............................. 0.75%
Consumer.................................. 0.44%
-----------
100%
-----------
-----------
</TABLE>
The Accompanying Notes are an Integral Part of the Financial Statements.
11
<PAGE>
THE ASIA GROWTH PORTFOLIO
STATEMENT OF ASSETS AND LIABILITIES
DECEMBER 31, 1995
- --------------------------------------------------------------------------------
<TABLE>
<S> <C>
ASSETS
Investments, at Value (Cost $83,766,057) $86,180,770
Foreign Currency, at Value (Cost $570,816) 570,583
Cash 506
Receivable for Investments Sold 954,569
Dividends and Interest Receivable 282,500
Deferred Organization Expense 28,102
Unrealized Appreciation on Open Spot Foreign Currency Contracts 230
----------
Total Assets 88,017,260
----------
LIABILITIES
Payable for Investments Purchased 865,658
Custody Fee Payable 80,180
Advisory Fee Payable 51,562
Administration Fee Payable 489
Unrealized Depreciation on Open Spot Foreign Currency Contracts 456
Fund Services Fee Payable 360
Administrative Services Fee Payable 181
Accrued Trustees' Fees and Expenses 122
Accrued Expenses and Other Liabilities 36,864
----------
Total Liabilities 1,035,872
----------
NET ASSETS
Applicable to Investor's Beneficial Interests $86,981,388
----------
----------
</TABLE>
The Accompanying Notes are an Integral Part of the Financial Statements.
12
<PAGE>
THE ASIA GROWTH PORTFOLIO
STATEMENT OF OPERATIONS
FOR THE PERIOD APRIL 5, 1995 (COMMENCEMENT OF OPERATIONS) THROUGH DECEMBER 31,
1995
- --------------------------------------------------------------------------------
<TABLE>
<S> <C> <C>
INVESTMENT INCOME
Dividends (Net of $160,437 Foreign Withholding Taxes) $1,550,136
Interest 157,189
---------
$1,707,325
Investment Income
EXPENSES
Advisory Fee 528,956
Custodian Fees and Expenses 305,260
Professional Fees 49,188
Financial and Fund Accounting Services Fees 21,642
Amortization of Organization Expense 4,898
Fund Services Fee 4,788
Administration Fee 4,037
Trustees' Fees and Expenses 2,021
Administrative Services Fee 181
Miscellaneous 3,214
---------
(924,185)
Total Expenses
---------
783,140
NET INVESTMENT INCOME
NET REALIZED GAIN (LOSS) ON
Investment Transactions 2,789,888
Foreign Currency Transactions (21,712)
---------
2,768,176
Net Realized Gain
NET CHANGE IN UNREALIZED APPRECIATION (DEPRECIATION) OF
Investments 2,414,713
Foreign Currency Contracts and Translations (304)
---------
2,414,409
Net Change in Unrealized Appreciation (Depreciation)
---------
$5,965,725
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS
---------
---------
</TABLE>
The Accompanying Notes are an Integral Part of the Financial Statements.
13
<PAGE>
THE ASIA GROWTH PORTFOLIO
STATEMENT OF CHANGES IN NET ASSETS
FOR THE PERIOD APRIL 5, 1995 (COMMENCEMENT OF OPERATIONS) THROUGH DECEMBER 31,
1995
- --------------------------------------------------------------------------------
<TABLE>
<S> <C>
INCREASE IN NET ASSETS
FROM OPERATIONS
Net Investment Income $ 783,140
Net Realized Gain on Investments and Foreign Currency Transactions 2,768,176
Net Change in Unrealized Appreciation (Depreciation) of Investments and 2,414,409
Foreign Currency Translations
Net Increase in Net Assets Resulting from Operations 5,965,725
----------
TRANSACTIONS IN INVESTORS' BENEFICIAL INTEREST
Contributions 104,554,882
Withdrawals (23,539,419)
----------
Net Increase from Investors' Transactions 81,015,463
----------
Total Increase in Net Assets 86,981,188
NET ASSETS
Beginning of Period 200
----------
End of Period $86,981,388
----------
----------
</TABLE>
- --------------------------------------------------------------------------------
SUPPLEMENTARY DATA
FOR THE PERIOD APRIL 5, 1995 (COMMENCEMENT OF OPERATIONS) THROUGH DECEMBER 31,
1995
- --------------------------------------------------------------------------------
<TABLE>
<S> <C>
RATIOS TO AVERAGE NET ASSETS
Expenses 1.40%(a)
Net Investment Income 1.18%(a)
Portfolio Turnover 70%(b)
</TABLE>
- ------------------------
(a) Annualized.
(b) Not Annualized.
The Accompanying Notes are an Integral Part of the Financial Statements.
14
<PAGE>
THE ASIA GROWTH PORTFOLIO
NOTES TO FINANCIAL STATEMENTS
DECEMBER 31, 1995
- --------------------------------------------------------------------------------
1. ORGANIZATION AND SIGNIFICANT ACCOUNTING POLICIES
The Asia Growth Portfolio (the "Portfolio"), one of three Portfolios comprising
The Series Portfolio (the "Series 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 24, 1994. The Portfolio
commenced operations on April 5, 1995. The Portfolio's investment objective is
to achieve a high total return from a portfolio of equity securities of
companies in Asian growth markets. The Declaration of Trust permits the Trustees
to issue an unlimited number of beneficial interests in the Portfolio.
Investments in Asian growth markets may involve certain considerations and risks
not typically associated with investments in the United States. Future economic
and political developments in Asian growth 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 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 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.
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
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<PAGE>
THE ASIA GROWTH PORTFOLIO
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
DECEMBER 31, 1995
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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 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.
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)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 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 forward and spot foreign currency contract
translations.
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 $33,000.
These costs were deferred and are being amortized on a straight-line basis
over a five year period from the commencement of operations.
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
16
<PAGE>
THE ASIA GROWTH PORTFOLIO
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
DECEMBER 31, 1995
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Morgan at an annual rate of 0.80% of the Portfolio's average daily net
assets. For the period April 5, 1995 (commencement of operations) through
December 31, 1995 such fees amounted to $528,956.
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
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 April 5, 1995 (commencement of operations) through December 28,
1995, such fees amounted to $3,941.
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 December 31, 1995 such fees amounted
to $96.
c)Until August 31, 1995, the Portfolio had a Financial and Fund Accounting
Services Agreement with Morgan under which Morgan received a fee for
overseeing certain aspects of the administration and operation of the
Portfolio and which 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 0.15% of the Portfolio's
average daily net assets up to $200 million, 0.10% of the next $200
million of average daily net assets, 0.05% of the next $200 million of
average daily net assets and 0.03% of average daily net assets thereafter.
For the period April 5, 1995 (commencement of operations) through August
31, 1995, the fee for these services amounted to $21,642. 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 prior 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 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
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<PAGE>
THE ASIA GROWTH PORTFOLIO
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
DECEMBER 31, 1995
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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
December 31, 1995 such fees amounted to $181.
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 $4,788 for the period April 5, 1995 (commencement of
operations) through December 31, 1995.
e)An aggregate annual fee of $65,000 is paid to each Trustee for serving as
a Trustee of the Series Portfolio as well as the funds and the
corresponding portfolios of two other affiliated series. 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 these Funds and
Portfolios 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 $600.
3. INVESTMENT TRANSACTIONS
Investment transactions (excluding short-term investments) for the period April
5, 1995 (commencement of operations) through December 31, 1995 were as follows:
<TABLE>
<CAPTION>
COST PROCEEDS
OF PURCHASES FROM SALES
- ------------- -------------
<S> <C>
$60,035,295 $ 59,030,341
</TABLE>
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<PAGE>
THE ASIA GROWTH PORTFOLIO
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
DECEMBER 31, 1995
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At December 31, 1995 the Portfolio had open spot foreign currency
contracts as follows:
<TABLE>
<CAPTION>
SUMMARY OF OPEN CONTRACTS
U.S. DOLLAR NET UNREALIZED
VALUE AT APPRECIATION
FOREIGN CURRENCY SALE CONTRACTS PROCEEDS 12/31/95 (DEPRECIATION)
- ------------------------------------------ --------- ----------- ---------------
<S> <C> <C> <C>
Hong Kong Dollar, 353,860 expiring
1/2/96................................... $ 45,769 $ 45,763 $ 6
Hong Kong Dollar, 1,330,381 expiring
1/3/96................................... 172,053 172,051 2
Malaysian Ringgit, 607,876 expiring
1/2/96................................... 239,139 239,349 (210)
<CAPTION>
FOREIGN CURRENCY PURCHASE CONTRACTS COST
- ------------------------------------------ ---------
<S> <C> <C> <C>
Malaysian Ringgit, 417,917 expiring
1/3/96................................... 164,729 164,554 (175)
Malaysian Ringgit, 383,934 expiring
1/4/96................................... 151,244 151,173 (71)
Malaysian Ringgit, 86,366 expiring
1/5/96................................... 33,982 34,006 24
Malaysian Ringgit, 556,483 expiring
1/8/96................................... 218,915 219,113 198
-----
Net Unrealized Depreciation on Foreign
Currency Contracts....................... $ (226)
-----
-----
</TABLE>
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<PAGE>
REPORT OF INDEPENDENT ACCOUNTANTS
To the Trustees and Investors of
The Asia Growth Portfolio
In our opinion, the accompanying statement of assets and liabilities, including
the schedule of investments, and the related statements of operations and of
changes in net assets and the supplementary data present fairly, in all material
respects, the financial position of The Asia Growth Portfolio (one of three
Portfolios comprising The Series Portfolio, hereafter referred to as the
"Portfolio") at December 31, 1995, and the results of its operations, the
changes in its net assets and the supplementary data for the period April 5,
1995 (commencement of operations) through December 31, 1995, in conformity with
generally accepted accounting principles. These financial statements and
supplementary data (hereafter referred to as "financial statements") are the
responsibility of the Portfolio's management; our responsibility is to express
an opinion on these financial statements based on our audit. We conducted our
audit of these financial statements in accordance with generally accepted
auditing standards which require that we plan and perform the audit to obtain
reasonable assurance about whether the financial statements are free of material
misstatement. An audit includes examining, on a test basis, evidence supporting
the amounts and disclosures in the financial statements, assessing the
accounting principles used and significant estimates made by management, and
evaluating the overall financial statement presentation. We believe that our
audit, which included confirmation of securities at December 31, 1995 by
correspondence with the custodian and brokers and the application of alternative
auditing procedures where confirmations from brokers were not received, provides
a reasonable basis for the opinion expressed above.
PRICE WATERHOUSE LLP
New York, New York
February 23, 1996
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