<PAGE>
THE ASIA GROWTH PORTFOLIO
SCHEDULE OF INVESTMENTS (UNAUDITED)
JUNE 30, 1996
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SECURITY DESCRIPTION SHARES VALUE
- ----------------------------- ----------- ------------
<S> <C> <C>
COMMON STOCK (92.8%)
CHINA (2.6%)
Huaneng Power International
Inc. (ADR)
(Telecommunication
Services)+ ................ 64,000 $ 1,144,000
Shanghai Dajiang Co. Ltd.
(Multi-Industry) .......... 1,487,100 780,727
Shanghai Haixin Shipping Co.
(Transport & Services) .... 3,500,000 230,605
Shanghai Tyre and Rubber Co.
Ltd. (Metals & Mining)+ ... 1,435,800 358,950
Shanghai Yaohua Pilkington
Glass Co. Ltd. (Building
Materials) . 602,750 361,650
------------
2,875,932
------------
HONG KONG (35.6%)
C.P. Pokphand Co.
(Agriculture) ............. 500,000 198,630
Cathay Pacific Airways
(Airlines) ................ 635,000 1,164,911
CDL Hotels International Ltd.
(Restaurants & Hotels) .... 400,000 219,624
Cheung Kong Holdings Ltd.
(Real Estate) ............. 560,000 4,033,328
China Light and Power Co.
Ltd.
(Telecommunications) ...... 370,000 1,677,797
Citic Pacific Ltd.
(Multi-Industry) .......... 266,000 1,075,614
Dao Heng Bank Group Ltd.
(Banking) ................. 55,000 212,454
Dickson Concepts
International Ltd.
(Retail) .................. 300,000 383,696
Dong Fang Electrical
Machinery Co. (Electrical
Equipment) ................ 1,884,000 472,186
Guangdon Electric Power
(Electric) ................ 1,000,000 639,493
Hang Seng Bank (Banking) .... 217,500 2,191,717
Henderson Land Development
Company Ltd. (Real
Estate) ................... 266,000 1,993,151
Hong Kong Electric Holdings
Ltd. (Electric) ........... 525,000 1,600,670
Hong Kong Telecommunications
Ltd.
(Telecommunications) ...... 1,922,000 3,451,428
<CAPTION>
SECURITY DESCRIPTION SHARES VALUE
- ----------------------------- ----------- ------------
<S> <C> <C>
</TABLE>
HONG KONG (CONTINUED)
<TABLE>
<S> <C> <C>
HSBC Holdings PLC
(Banking) ................. 149,303 $ 2,256,758
Hutchison Whampoa Ltd.
(Multi-Industry) .......... 549,000 3,454,076
JCG Holdings Limited
(Financial Services) ...... 554,000 450,901
Johnson Electric Holdings
Ltd. (Electronics) ........ 451,000 1,013,810
Joyce Boutique Holdings
(Retail) .................. 622,000 208,927
Luoyang Glass Co. Ltd.
(Building Materials) ...... 1,576,000 374,632
National Mutual Asia Ltd.
(Insurance) ............... 220,000 193,269
New World Development Co.
Ltd. (Real Estate) ........ 300,000 1,391,382
Shangri-La Asia Ltd.
(Restaurants & Hotels) .... 170,000 238,292
Sing Tao Holdings
(Broadcasting &
Publishing) ............... 672,000 397,183
Sun Hung Kai Properties Ltd.
(Real Estate) ............. 327,000 3,305,694
Swire Pacific Ltd., Class A
(Multi-Industry) .......... 402,500 3,444,946
Television Broadcast Ltd.
(Entertainment, Leisure &
Media) .................... 186,000 698,055
Tingyi (Cayman Islands)
Holding Co. (Food,
Beverages & Tobacco)+ ..... 648,000 177,895
Wai Kee Holdings Ltd.
(Construction &
Housing) .................. 820,000 235,708
Wharf (Holdings) Ltd. (Real
Estate) ................... 90,000 322,072
Yizheng Chemical Fibre Co.
Ltd. (Chemicals) .......... 1,340,000 296,027
Yue Yuen Industrial Holdings
(Metals & Mining) ......... 1,416,000 402,454
Zhenhai Refining & Chemical
Co. (Chemicals) ........... 3,946,000 1,121,529
------------
39,298,309
------------
</TABLE>
The Accompanying Notes are an Integral Part of the Financial Statements.
17
<PAGE>
THE ASIA GROWTH PORTFOLIO
SCHEDULE OF INVESTMENTS (UNAUDITED) (CONTINUED)
JUNE 30, 1996
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SECURITY DESCRIPTION SHARES VALUE
- ----------------------------- ----------- ------------
<S> <C> <C>
INDONESIA (3.9%)
P.T. Gudang Garam (Food,
Beverages & Tobacco) ...... 178,500 $ 765,025
P.T. Hanjaya Mandala
Sampoerna (Food, Beverages
& Tobacco) ................ 23,000 261,877
P.T. Indosat (ADR)
(Telecommunications) ...... 6,000 201,000
P.T. International Nickel
Indonesia (Metals &
Mining) . 210,000 478,211
P.T. Japfa Comfeed Indonesia
(Food, Beverages &
Tobacco) .................. 351,500 203,884
P.T. Kabelmetal Indonesia
(Telecommunications-
Equipment) ................ 200,000 90,228
P.T. Matahari Putra Prima
(Retail) .................. 157,000 286,690
P.T. Pabris Kertas Tjiwi
Kimia (Metals & Mining) ... 543,693 554,807
P.T. Pan Indonesia Bank
(Banking) ................. 518,125 478,627
P.T. Semen Cibinong (Building
Materials) ................ 146,000 329,334
P.T. Telekomunikasi Indonesia
(Telecommunications) ...... 427,500 647,470
P.T. Tigaraksa Satria
(Multi-Industry) .......... 75,800 195,409
------------
4,492,562
------------
MALAYSIA (15.0%)
Arab Malaysian Finance Berhad
(Financial Services) ...... 75,000 327,624
Commerce Asset-Holding Berhad
(Banking) ................. 104,000 633,527
Edaran Otomobil Nasional
Berhad (Automotive) ....... 57,000 545,960
Guinness Anchor Berhad (Food,
Beverages & Tobacco) ...... 240,000 495,344
Hicom Holdings Berhad
(Diversified
Manufacturing) ............ 133,000 378,441
IJM Corp. Berhad (Building
Materials) ................ 188,000 325,484
Industrial Oxygen Inc. Berhad
(Agriculture) ............. 358,000 496,418
<CAPTION>
SECURITY DESCRIPTION SHARES VALUE
- ----------------------------- ----------- ------------
<S> <C> <C>
</TABLE>
MALAYSIA (CONTINUED)
<TABLE>
<S> <C> <C>
Intiplus Berhad (Financial
Services) ................. 456,000 $ 447,733
Konsortium Perkapalan Berhad
(Transport & Services)+ ... 95,000 571,088
Leader Universal Holdings
Berhad (Electronics) ...... 125,000 353,173
Lingui Developments Berhad
(Forest Products &
Paper) .................... 318,000 751,913
Malayan Banking Berhad
(Banking) ................. 79,000 759,848
Malayan Cement Berhad
(Building Materials) ...... 233,000 560,267
Malaysian Assurance Alliance
Berhad (Insurance) ........ 750 3,968
Malaysian Oxygen Berhad
(Chemicals) ............... 186,500 1,009,022
Malaywata Steel Berhad
(Metals & Mining) ......... 305,000 523,157
Maruichi Malaysian Steel Tube
Berhad (Metals &
Mining) ................... 118,000 439,798
Matsushita Electric Co.
Malaysia Berhad
(Electronics) ............. 27,000 275,926
Metroplex Berhad (Real
Estate) . 149,000 160,033
New Straits Times Press
Berhad (Entertainment,
Leisure & Media) .......... 242,000 1,260,802
Pacific & Orient Berhad
(Insurance) ............... 104,000 291,756
Petronas Dagangan Berhad
(Oil-Services) ............ 83,000 224,528
Reliance Pacific Berhad
(Entertainment, Leisure &
Media) .................... 152,000 371,588
Resorts World Berhad
(Entertainment, Leisure &
Media) .................... 249,000 1,426,999
Sime Darby Berhad
(Multi-Industry) .......... 270,000 746,622
Sime U.E.P. Properties Berhad
(Real Estate) ............. 431,000 876,600
TA Enterprise Berhad
(Financial Services) ...... 362,000 565,798
</TABLE>
The Accompanying Notes are an Integral Part of the Financial Statements.
18
<PAGE>
THE ASIA GROWTH PORTFOLIO
SCHEDULE OF INVESTMENTS (UNAUDITED) (CONTINUED)
JUNE 30, 1996
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
MALAYSIA (CONTINUED)
SECURITY DESCRIPTION SHARES VALUE
- ----------------------------- ----------- ------------
<S> <C> <C>
Technological Resources
Industries Berhad
(Multi-Industry) .......... 124,000 $ 432,344
Tenaga Nasional Berhad
(Telecommunications) ...... 253,000 1,064,628
------------
16,320,389
------------
PHILIPPINES (3.7%)
Aboitiz Equity Ventures Inca
(GDS) (Banking)+ .......... 1,930,800 361,115
Alaska Milk Corp. (Food,
Beverages & Tobacco)+ ..... 3,183,000 388,775
Alsons Cement Corp. (Building
Materials)+ ............... 436,000 199,701
Bankard Inc. (Banking)+ ..... 790,000 331,690
Fil-Estate Land Inc. (Real
Estate) ................... 296,100 378,613
JG Summit Holdings Inc.
(Multi-Industry) .......... 852,000 318,697
Manila Electric Co.
(Electric) ................ 60,000 629,790
Petron Corp.
(Oil-Services) ............ 612,812 280,686
Philippine Long Distance
Telephone Co. (ADR)
(Utilities) ............... 5,700 331,313
Philippine National Bank
(Banking)+ ................ 16,628 277,671
Pryce Properties Corp. (Real
Estate) ................... 5,405,400 342,490
Steniel Manufacturing Corp.
(Metals & Mining) ......... 2,300,000 267,756
------------
4,108,297
------------
SINGAPORE (8.4%)
Acma Ltd. (Computer
Peripherals) .............. 117,600 343,274
Cycle & Carriage Ltd.
(Automotive) .............. 27,000 288,853
DBS Land Ltd. (Real
Estate) ................... 105,000 360,057
Development Bank Singapore
(Banking) ................. 74,000 922,744
Fraser & Neave Ltd. (Food,
Beverages & Tobacco) ...... 98,000 1,013,714
<CAPTION>
SECURITY DESCRIPTION SHARES VALUE
- ----------------------------- ----------- ------------
<S> <C> <C>
</TABLE>
SINGAPORE (CONTINUED)
<TABLE>
<S> <C> <C>
Hotel Properties Ltd.
(Restaurants & Hotels) .... 215,000 $ 380,816
Jurong Engineering Ltd.
(Capital Goods) ........... 99,000 347,899
Jurong Shipyard Ltd.
(Transport & Services) .... 32,000 162,104
NatSteel Ltd. (Metals &
Mining) ................... 147,500 292,608
Osprey Maritime Ltd.
(Transport & Services) .... 139,500 246,218
Overseas Chinese Bank
(Banking) ................. 76,000 888,452
Singapore Airlines Ltd.
(Airlines) ................ 159,000 1,678,495
Singapore Telecommunications
Ltd.
(Telecommunications) ...... 336,000 895,084
United Overseas Bank Ltd.
(Banking) ................. 155,310 1,485,490
------------
9,305,808
------------
SOUTH KOREA (5.9%)
Cho Hung Bank (Banking) ..... 61,000 758,689
Chung Ho Computer Co.
(Computer Peripherals) .... 8,000 580,393
Dong Ah Construction
Industrial Co.
(Construction &
Housing) .................. 7,300 277,700
Dongbu Insurance
(Insurance)+ .............. 8,030 434,477
Hana Bank (Banking) ......... 17,596 323,298
Hansol Paper Co. Ltd. (GDS)
(Forest Products &
Paper) .................... 14,937 287,537
Hansol Paper Co. Ltd. (GDS)
144A (Forest Products &
Paper)+ ................... 2,195 42,254
Hyundai Engineering &
Construction Co.
(Construction &
Housing)+ ................. 4,000 186,120
Korea Electric Power Corp.
(Electric) ................ 18,000 726,946
Korea First Bank
(Banking)+ ................ 83,000 719,827
Korea Housing Bank
(Banking)+ ................ 540 12,582
</TABLE>
The Accompanying Notes are an Integral Part of the Financial Statements.
19
<PAGE>
THE ASIA GROWTH PORTFOLIO
SCHEDULE OF INVESTMENTS (UNAUDITED) (CONTINUED)
JUNE 30, 1996
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SOUTH KOREA (CONTINUED)
SECURITY DESCRIPTION SHARES VALUE
- ----------------------------- ----------- ------------
<S> <C> <C>
Korea Mobile
Telecommunications
(Telecommunications) ...... 430 $ 519,070
Korea Zinc Co. (Metals &
Mining) ................... 14,100 323,309
Oriental Fire & Marine
Insurance (Insurance) ..... 4,200 147,564
Pohang Iron & Steel Co.
(Metals & Mining) ......... 5,100 416,023
Samsung Electronics (GDR
represents 1/2 non-voting
common share) 144A
(Electronics) ............. 11,374 275,820
Samsung Electronics (GDR
represents 1/2 non-voting
preferred share) 144A
(Electronics)+ ............ 5,236 104,720
Samsung Electronics (GDR
represents 1/2 voting
common share) 144A
(Electronics)+ ............ 266 10,906
Samsung Electronics (GDR
represents 1/2 voting
common share) 144A
(Electronics)+ ............ 884 45,305
Seoul City Gas Co. Ltd.
(Natural Gas) ............. 4,500 352,267
------------
6,544,807
------------
TAIWAN (5.3%)
Acer Incorporation (GDR)
(Computer Peripherals)+ ... 44,240 336,224
Asia Cement Corp. (GDS)
(Building Materials) ...... 83,865 1,698,275
China Steel Corp. (GDS)
(Metals & Mining) ......... 60,000 1,530,000
Hocheng Group Corp. (GDR)
144A (Building
Materials)+ ............... 13,114 162,286
President Enterprises Corp.
(GDR) (Food, Beverages &
Tobacco)+ ................. 72,051 1,459,033
<CAPTION>
SECURITY DESCRIPTION SHARES VALUE
- ----------------------------- ----------- ------------
<S> <C> <C>
</TABLE>
TAIWAN (CONTINUED)
<TABLE>
<S> <C> <C>
Siliconware Precision
Industries (GDR)
(Semiconductors)+ ......... 24,000 $ 189,000
Yageo Corp. (GDR)
(Electronics)+ ............ 68,600 514,500
------------
5,889,318
------------
THAILAND (12.4%)
Advanced Info Service Public
Co. Ltd.
(Telecommunications) ...... 95,900 1,419,666
Bangkok Bank Public Co. Ltd.
(Banking) ................. 159,000 2,153,452
Bangkok Expressway Public Co.
Ltd. (Transport &
Services)+ ................ 100,000 164,375
Banpu Public Co. Ltd. (Metals
& Mining) ................. 10,700 308,372
Central Pattana Public Co.
Ltd. (Real Estate) ........ 144,500 671,320
Dhana Siam Finance and
Securities Public Co. Ltd.
(Financial Services) ...... 126,500 702,246
Finance One Public Co. Ltd.
(Financial Services) ...... 83,000 535,922
Krung Thai Bank Public Co.
Ltd. (Banking) ............ 85,000 398,241
Land & House Public Co. Ltd.
(Real Estate) ............. 44,000 554,348
Modern Form Group Public Co.
Ltd. (Manufacturing) ...... 174,700 135,844
Phatra Thanakit Co. Ltd.
(Financial Services) ...... 45,000 313,592
Regional Container Line
Public Co. Ltd. (Packaging
& Containers) ............. 37,500 549,230
Saha-Union Public Co. Ltd.
(Textiles) ................ 200,000 313,002
Sahavirya Steel Industries
Public Co. Ltd. (Metals &
Mining)+ . 470,000 305,324
Siam Cement Public Co. Ltd.
(Building Materials) ...... 22,000 1,079,246
Siam Commercial Bank Co. Ltd.
(Banking) ................. 18,000 260,795
TelecomAsia Corp. Public Co.
Ltd.
(Telecommunications)+ ..... 674,000 1,479,396
</TABLE>
The Accompanying Notes are an Integral Part of the Financial Statements.
20
<PAGE>
THE ASIA GROWTH PORTFOLIO
SCHEDULE OF INVESTMENTS (UNAUDITED) (CONTINUED)
JUNE 30, 1996
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
THAILAND (CONTINUED)
SECURITY DESCRIPTION SHARES VALUE
- ----------------------------- ----------- ------------
<S> <C> <C>
Thai Farmers Bank Public Co.
Ltd. (Banking) ............ 114,600 $ 1,254,322
Thai Petrochemical Industry
Public Co. Ltd.
(Chemicals) ............... 252,000 384,461
United Communication Industry
(Telecommunications-
Equipment) ................ 51,000 682,698
------------
13,665,852
------------
TOTAL COMMON STOCK
(COST $95,359,277) ....... 102,501,274
------------
CONVERTIBLE PREFERRED STOCKS (0.5%)
PHILIPPINES (0.5%)
Philippine Long Distance
Telephone Co. (GDS
represents 1 Series 2
Convertible Preferred)
(Utilities) (cost
$532,650) ................. 15,900 532,650
------------
PREFERRED STOCK (0.4%)
SOUTH KOREA (0.4%)
Mando Machinery Corp.
(Automotive Supplies) ..... 11,000 211,545
Shin Won Corp. (Apparels &
Textiles) ................. 13,530 193,733
------------
TOTAL PREFERRED STOCK (COST
$591,526) ................ 405,278
------------
RIGHTS (0.1%)+
SINGAPORE (0.1%)
Overseas Chinese Bank (expire
07/09/96) (Banking) ....... 7,600 61,061
------------
SOUTH KOREA (0.0%)(A)
Hana Bank (Expire 07/26/96)
(Banking) ................. 3,045 14,640
------------
TOTAL RIGHTS
(COST $55,410) ........... 75,701
------------
<CAPTION>
SECURITY DESCRIPTION SHARES VALUE
- ----------------------------- ----------- ------------
<S> <C> <C>
WARRANTS (0.9%)+
MALAYSIA (0.5%)
Petronas Dagangan Berhad
(Expire 02/23/99) (Oil-
Services) ................. 340,000 $ 501,435
------------
SINGAPORE (0.4%)
United Overseas Land Ltd.
(Expire 06/09/97) (Real
Estate) ................... 697,536 513,968
------------
TOTAL WARRANTS
(COST $1,028,686) ........ 1,015,403
------------
PRINCIPAL
AMOUNT
-----------
CONVERTIBLE BONDS (3.4%)
HONG KONG (0.3%)
Regal Hotels International,
5.25% due 12/13/08
(Restaurants & Hotels) .... $ 350,000 346,062
------------
MALAYSIA (1.3%)
Commerce Asset Holding
Berhad, 1.75% due 09/26/04
(Banking) ................. 720,000 860,400
Telekom Malaysia Berhad,
4.00% due 10/03/04
(Telecommunications) ...... 560,000 590,100
------------
1,450,500
------------
SOUTH KOREA (0.3%)
Ssangyong Oil Refining Co.
Ltd., 3.75% due 12/31/08
(Oil-Production) .......... 305,000 315,675
------------
TAIWAN (1.5%)
Far Eastern Department Stores
Ltd., 3.00% due 07/06/01
(Retail) .................. 600,000 569,250
Nan Ya Plastics Corp., 1.75%
due 07/19/01
(Chemicals) ............... 470,000 507,013
</TABLE>
The Accompanying Notes are an Integral Part of the Financial Statements.
21
<PAGE>
THE ASIA GROWTH PORTFOLIO
SCHEDULE OF INVESTMENTS (UNAUDITED) (CONTINUED)
JUNE 30, 1996
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PRINCIPAL
SECURITY DESCRIPTION AMOUNT VALUE
- ----------------------------- ----------- ------------
<S> <C> <C>
</TABLE>
TAIWAN (CONTINUED)
<TABLE>
<S> <C> <C>
U-Ming Marine Transport
Corp., 1.50% due 02/07/01
(Transport & Services) .... $ 390,000 $ 349,050
Yang Ming Marine Transport,
2.00% due 10/06/01
(Transport & Services) .... 200,000 251,500
------------
1,676,813
------------
TOTAL CONVERTIBLE BONDS
(COST $3,714,252) ........ 3,789,050
------------
SHORT-TERM INVESTMENTS (1.5%)
EURO DOLLAR TIME DEPOSITS (1.5%)
State Street Cayman Islands,
4.88% due 07/01/96
(cost $1,651,000) ......... 1,651,000 1,651,000
------------
TOTAL INVESTMENTS
(COST $102,932,801) (99.6%) ............ 109,970,356
OTHER ASSETS IN EXCESS OF LIABILITIES
(0.4%) ................................. 471,826
------------
NET ASSETS (100.0%) ...................... $110,442,182
------------
------------
</TABLE>
- ------------------------
Note: For Federal Income Tax purposes, the cost of securities owned at June 30,
1996 was substantially the same as the cost of securities for financial
statement purposes.
+ -- Non-income producing security.
(a) -- Less than 0.1%
ADR -- American Depositary Receipt.
GDS -- Global Depositary Shares.
GDR -- Global Depositary Receipt.
144A -- Security restricted for resale to Qualified
Institutional Buyers.
The Accompanying Notes are an Integral Part of the Financial Statements.
22
<PAGE>
THE ASIA GROWTH PORTFOLIO
SCHEDULE OF INVESTMENTS (UNAUDITED)(CONTINUED)
June 30, 1996
- --------------------------------------------------------------------------------
INDUSTRY DIVERSIFICATION
<TABLE>
<CAPTION>
PERCENT OF
TOTAL
INVESTMENTS
-------------
<S> <C>
Banking............................................................................................. 16.26%
Real Estate......................................................................................... 13.75%
Telecommunications.................................................................................. 11.03%
Multi - Industry.................................................................................... 9.64%
Metals & Mining..................................................................................... 5.72%
Building Materials.................................................................................. 4.70%
Food, Beverages & Tobacco........................................................................... 4.40%
Entertainment, Leisure & Media...................................................................... 3.47%
Electric............................................................................................ 3.32%
Financial Services.................................................................................. 3.09%
Chemicals........................................................................................... 3.06%
Airlines............................................................................................ 2.63%
Electronics......................................................................................... 2.39%
Transport & Services................................................................................ 1.82%
Retail.............................................................................................. 1.80%
Computer Peripherals................................................................................ 1.16%
Restaurants & Hotels................................................................................ 1.09%
Telecommunication Services.......................................................................... 1.06%
Forest Products & Paper............................................................................. 1.00%
Insurance........................................................................................... 0.99%
Utilities........................................................................................... 0.80%
Automotive.......................................................................................... 0.77%
Telecommunications-Equipment........................................................................ 0.71%
Construction & Housing.............................................................................. 0.65%
Agriculture......................................................................................... 0.64%
Packaging & Containers.............................................................................. 0.51%
Oil-Services........................................................................................ 0.47%
Electrical Equipment................................................................................ 0.44%
Broadcasting & Publising............................................................................ 0.37%
Diversified Manufacturing........................................................................... 0.35%
Natural Gas......................................................................................... 0.33%
Capital Goods....................................................................................... 0.32%
Oil-Production...................................................................................... 0.29%
Textiles............................................................................................ 0.29%
Automotive Supplies................................................................................. 0.20%
Apparels & Textiles................................................................................. 0.18%
Semiconductors...................................................................................... 0.17%
Manufacturing....................................................................................... 0.13%
-------------
100.00%
-------------
-------------
</TABLE>
The Accompanying Notes are an Integral Part of the Financial Statements.
23
<PAGE>
THE ASIA GROWTH PORTFOLIO
STATEMENT OF ASSETS AND LIABILITIES (UNAUDITED)
JUNE 30, 1996
- --------------------------------------------------------------------------------
<TABLE>
<S> <C>
ASSETS
Investments at Value (Cost $102,932,801) $109,970,356
Foreign Currency at Value (Cost $312,407) 312,108
Cash 38,223
Unrealized Appreciation on Open Spot Foreign Currency Contracts 584
Receivable for Investments Sold 977,321
Dividends Receivable 319,684
Interest Receivable 52,318
Deferred Organization Expenses 25,469
------------
Total Assets 111,696,063
------------
LIABILITIES
Payable for Investments Purchased 991,727
Custody Fee Payable 112,771
Advisory Fee Payable 72,481
Organization Expenses Payable 5,750
Administrative Services Fee Payable 4,530
Administration Fee Payable 1,161
Fund Services Fee Payable 320
Accrued Expenses & Other Liabilities 65,141
------------
Total Liabilities 1,253,881
------------
NET ASSETS
Applicable to Investors' Beneficial Interests $110,442,182
------------
------------
</TABLE>
The Accompanying Notes are an Integral Part of the Financial Statements.
24
<PAGE>
THE ASIA GROWTH PORTFOLIO
STATEMENT OF OPERATIONS (UNAUDITED)
FOR THE SIX MONTHS ENDED JUNE 30, 1996
- --------------------------------------------------------------------------------
<TABLE>
<S> <C> <C>
INVESTMENT INCOME
Dividend Income (Net of Foreign Withholding Tax of $108,976 ) $1,157,622
Interest Income 134,734
----------
Investment Income 1,292,356
EXPENSES
Advisory Fee $ 414,049
Custodian Fees and Expenses 183,844
Professional Fees 29,654
Administrative Services Fee 12,972
Administration Fee 6,530
Fund Services Fee 2,840
Amortization of Organization Expenses 2,633
Printing Expenses 1,716
Trustees' Fees and Expenses 1,135
Insurance Expense 361
Registration Fees 349
Miscellaneous 1,164
----------
Total Expenses 657,247
Less: Reimbursement of Expenses (7,302)
----------
NET EXPENSES (649,945)
----------
NET INVESTMENT INCOME 642,411
NET REALIZED GAIN (LOSS) ON
Investment Transactions 3,216,295
Foreign Currency Transactions (198,727)
----------
Net Realized Gain 3,017,568
NET CHANGE IN UNREALIZED APPRECIATION (DEPRECIATION) OF
Investments 4,622,842
Foreign Currency Contracts and Translations (61)
----------
Net Change in Unrealized Appreciation 4,622,781
----------
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS $8,282,760
----------
----------
</TABLE>
The Accompanying Notes are an Integral Part of the Financial Statements.
25
<PAGE>
THE ASIA GROWTH PORTFOLIO
STATEMENT OF CHANGES IN NET ASSETS
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
FOR THE PERIOD
APRIL 5, 1995
(COMMENCEMENT
FOR THE SIX OF
MONTHS ENDED OPERATIONS)
JUNE 30, THROUGH
1996 DECEMBER 31,
(UNAUDITED) 1995
------------ ---------------
<S> <C> <C>
INCREASE IN NET ASSETS
FROM OPERATIONS
Net Investment Income $ 642,411 $ 783,140
Net Realized Gain on Investments and Foreign Currency
Transactions 3,017,568 2,768,176
Net Change in Unrealized Appreciation of Investments and
Foreign Currency Translations 4,622,781 2,414,409
------------ ---------------
Net Increase in Net Assets Resulting from Operations 8,282,760 5,965,725
------------ ---------------
TRANSACTIONS IN INVESTORS' BENEFICIAL INTEREST
Contributions 38,835,059 104,554,882
Withdrawals (23,657,025) (23,539,419)
------------ ---------------
Net Increase from Investors' Transactions 15,178,034 81,015,463
------------ ---------------
Total Increase in Net Assets 23,460,794 86,981,188
NET ASSETS
Beginning of Period 86,981,388 200
------------ ---------------
End of Period $110,442,182 $ 86,981,388
------------ ---------------
------------ ---------------
</TABLE>
- --------------------------------------------------------------------------------
SUPPLEMENTARY DATA
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
FOR THE PERIOD
APRIL 5, 1995
FOR THE SIX (COMMENCEMENT
MONTHS OF
ENDED OPERATIONS)
JUNE 30, THROUGH
1996 DECEMBER 31,
(UNAUDITED) 1995
----------- ---------------
<S> <C> <C>
RATIOS TO AVERAGE NET ASSETS
Expenses $ 1.26%(a) $ 1.40%(a)
Net Investment Income 1.24%(a) 1.18%(a)
Decrease reflected in Expense Ratio due to Expense
Reimbursement 0.01%(a) --
Portfolio Turnover 42%(b) 70%(b)
</TABLE>
- ------------------------
(a)Annualized.
(b)Not Annualized.
The Accompanying Notes are an Integral Part of the Financial Statements.
26
<PAGE>
THE ASIA GROWTH PORTFOLIO
NOTES TO FINANCIAL STATEMENTS (UNAUDITED)
JUNE 30, 1996
- --------------------------------------------------------------------------------
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 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 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. 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 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
27
<PAGE>
THE ASIA GROWTH PORTFOLIO
NOTES TO FINANCIAL STATEMENTS (UNAUDITED) (CONTINUED)
JUNE 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 foreign forward and spot currency contract
translations.
At June 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 6/30/96 (DEPRECIATION)
- ------------------------------------------------------------------------ ---------- ----------- -----------------
<S> <C> <C> <C>
Hong Kong Dollar, 123,668, expiring 7/1/96 $ 15,976 $ 15,977 $ (1)
Indonesian Rupiah, 35,697,600, expiring 7/1/96 15,325 15,337 (12)
Indonesian Rupiah, 67,034,724, expiring 7/2/96 28,808 28,815 (7)
Malaysian Ringgit, 107,306, expiring 7/1/96 42,948 43,004 (56)
Malaysian Ringgit, 303,974, expiring 7/2/96 121,737 121,821 (84)
Malaysian Ringgit, 176,114, expiring 7/3/96 70,610 70,580 30
Malaysian Ringgit, 168,944, expiring 7/3/96 67,699 67,706 (7)
---
(137)
---
</TABLE>
28
<PAGE>
THE ASIA GROWTH PORTFOLIO
NOTES TO FINANCIAL STATEMENTS (UNAUDITED) (CONTINUED)
JUNE 30, 1996
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
U.S. DOLLAR NET UNREALIZED
VALUE AT APPRECIATION
FOREIGN CURRENCY PURCHASE CONTRACTS COST 6/30/96 (DEPRECIATION)
- ------------------------------------------------------------------------ ---------- ----------- -----------------
<S> <C> <C> <C>
Indonesian Rupiah, 122,504,623, expiring 7/3/96 $ 52,635 $ 52,645 $ 10
Malaysian Ringgit, 61,314, expiring 7/1/96 24,582 24,572 (10)
Malaysian Ringgit, 18,016, expiring 7/2/96 7,217 7,220 3
Malaysian Ringgit, 231,115, expiring 7/3/96 112,455 112,661 206
Malaysian Ringgit, 105,585, expiring 7/3/96 42,238 42,315 77
Malaysian Ringgit, 58,619, expiring 7/3/96 23,462 23,492 30
Malaysian Ringgit, 709,045, expiring 7/3/96 283,777 284,159 382
Malaysian Ringgit, 166,798, expiring 7/5/96 66,795 66,846 51
Malaysian Ringgit, 96,380, expiring 7/8/96 38,638 38,626 (12)
Malaysian Ringgit, 96,380, expiring 7/8/96 38,638 38,626 (12)
Malaysian Ringgit, 92,598, expiring 7/9/96 37,110 37,106 (4)
---
721
---
Net Unrealized Appreciation on Foreign Currency Contracts $ 584
---
---
</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 $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.
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
market-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 agreement,
the Portfolio pays Morgan at an annual rate of 0.80% of the Portfolio's
average daily net assets. For the six months ended June 30, 1996 such fees
amounted to $414,049.
b)The Portfolio has retained Signature Broker-Dealer Services, Inc.
("Signature") to serve as administrator and exclusive placement agent.
Signature provides administrative services necessary
29
<PAGE>
THE ASIA GROWTH PORTFOLIO
NOTES TO FINANCIAL STATEMENTS (UNAUDITED) (CONTINUED)
JUNE 30, 1996
- --------------------------------------------------------------------------------
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
Administration Agreement provided for a fee to be paid to Signature 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 six months ended June 30, 1996, such fees
amounted to $6,530.
Effective August 1, 1996, administrative functions provided by Signature
will be provided by Funds Distributor, Inc. ("FDI"), a registered
broker-dealer, and by Morgan. FDI will also become the Portfolio's
exclusive placement agent. Under a Co-Administration Agreement between FDI
and the Portfolio, FDI's fees are to be paid by the Portfolio. (see Note
2c).
c)The Portfolio has an Administrative Services Agreement (the "Services
Agreement") with Morgan under which Morgan is responsible for certain
aspects of the administration and operation of the Portfolio. Under the
Services 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 six months
ended June 30, 1996, such fees amounted to $12,972.
Effective August 1, 1996, the Services Agreement will be amended such that
the aggregate complex-wide fees to be paid by the Portfolio under both the
amended Services Agreement and the Co-Administration Agreement (see Note
2b) will be calculated daily based on the aggregate average daily net
assets of the Master Portfolios in accordance with the following annual
schedule: 0.09% on the first $7 billion of the Master Portfolios aggregate
average daily net assets and 0.04% of the aggregate average daily net
assets in excess of $7 billion.
In addition, Morgan has agreed to reimburse the Portfolio to the extent
necessary to maintain the total operating expenses of the Portfolio at no
more than 1.25% of the average daily net assets of the Portfolio. For the
six months ended June 30, 1996, Morgan has agreed to reimburse the
Portfolio $7,302 for expenses under this agreement.
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 $2,840 for the six months ended June 30, 1996.
30
<PAGE>
THE ASIA GROWTH PORTFOLIO
NOTES TO FINANCIAL STATEMENTS (UNAUDITED) (CONTINUED)
JUNE 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 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 $400.
3. INVESTMENT TRANSACTIONS:
Investment transactions (excluding short-term investments) for the six months
ended June 30, 1996 were as follows:
<TABLE>
<S> <C>
COST OF PROCEEDS FROM
PURCHASES SALES
- ------------- -------------
$ 59,105,481 $41,831,889
</TABLE>
31
