<PAGE>
THE ASIA GROWTH PORTFOLIO
SCHEDULE OF INVESTMENTS (UNAUDITED)
JUNE 30, 1997
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SECURITY DESCRIPTION SHARES VALUE
- ------------------------------------------------- ------------ -------------
<S> <C> <C>
COMMON STOCK (89.5%)
CHINA (1.9%)
Guangdong Electric Power (Series B) (Electric)... 559,200 $ 458,344
Guangdong Province Expressway Development Ltd.
(Series B) (Construction & Housing)+........... 211,500 133,770
Qingling Motors Co. Ltd. (Series H)
(Automotive)................................... 844,000 435,766
Shandong Huaneng Power Ltd. (ADR) (Electric)..... 58,100 624,575
Shanghai Dajiang Group Co. Ltd. (Series B) (Multi
- Industry).................................... 904,310 279,432
Zhenhai Refining & Chemical Co. Ltd. (Series H)
(Chemicals).................................... 1,207,700 436,483
-------------
2,368,370
-------------
HONG KONG (31.6%)
CDL Hotels International Ltd. (Restaurants &
Hotels)........................................ 1,250,000 508,243
Cheung Kong Holdings Ltd. (Real Estate).......... 543,000 5,361,817
Dickson Concepts International Ltd. (Wholesale &
International Trade)........................... 359,000 1,306,755
Esprit Holdings Ltd. (Retail).................... 2,716,000 1,928,160
First Tractor Co Ltd (Machinery)+................ 234,000 154,041
Hang Seng Bank Ltd. (Banking).................... 62,400 890,016
Henderson Land Development Company Ltd. (Real
Estate)........................................ 351,000 3,114,803
Hong Kong & China Gas Co. Ltd. (Natural Gas)..... 1,292,400 2,585,707
Hong Kong Electric Holdings Ltd. (Electric)...... 544,000 2,190,807
HSBC Holdings PLC (Banking)...................... 51,303 1,542,941
Hutchison Whampoa Ltd. (Multi - Industry)........ 752,000 6,503,443
Jiangsu Expressway Company Ltd.
(Transportation)+.............................. 602,000 213,688
New World Infrastructure Ltd. (Construction &
Housing)+...................................... 341,000 963,938
Silver Grant International Industries Ltd. (Real
Estate)........................................ 1,812,000 947,248
<CAPTION>
SECURITY DESCRIPTION SHARES VALUE
- ------------------------------------------------- ------------ -------------
<S> <C> <C>
HONG KONG (CONTINUED)
Smartone Telecommunications (Telecommunication
Services)+..................................... 719,000 $ 1,633,399
Sun Hung Kai Properties Ltd. (Real Estate)....... 242,000 2,912,828
Swire Pacific Ltd. (Multi - Industry)............ 662,000 5,960,091
Tingyi (Cayman Islands) Holding Co. (Food,
Beverages & Tobacco)........................... 6,798,000 1,693,515
-------------
40,411,440
-------------
INDIA (1.0%)
Ashok Leyland Ltd. (GDR) (Automotive)............ 41,600 269,360
Indian Hotels Company Ltd. (GDR)(144A)
(Restaurants & Hotels)......................... 11,900 282,625
Indian Petrochemicals Corp. Ltd. (GDR)
(Chemicals)+................................... 38,100 533,400
Reliance Industrial Infrastructure Ltd. (GDR)
(Chemicals)+................................... 8,200 188,600
-------------
1,273,985
-------------
INDONESIA (6.0%)
P.T. Bank Bira (Banking)......................... 225,000 330,814
P.T. Bank Pan Indonesia (Banking)................ 714,250 469,998
P.T. Hanjaya Mandala Sampoerna (Food, Beverages &
Tobacco)....................................... 238,000 907,855
P.T. Indorama Synthetics (Textiles).............. 724,000 655,069
P.T. Kawasan Industri Jababeka (Real Estate)..... 307,000 410,343
P.T. Matahari Putra Prima (Retail)............... 489,000 985,441
P.T. Pabrik Kertas Tjiwi Kimia (Metals &
Mining)........................................ 326,868 379,766
P.T. Putra Surya Multidana (Banking)............. 190,000 302,797
P.T. Semen Cibinong (Building Materials)......... 194,000 434,834
P.T. Telekomunikasi Indonesia
(Telecommunications)........................... 954,000 1,559,593
</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, 1997
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SECURITY DESCRIPTION SHARES VALUE
- ------------------------------------------------- ------------ -------------
<S> <C> <C>
INDONESIA (CONTINUED)
P.T. Tempo Scan Pacific (Pharmaceuticals)........ 280,000 $ 627,596
P.T. United Tractors (Capital Goods)............. 169,000 625,540
-------------
7,689,646
-------------
MALAYSIA (16.9%)
Berjaya Capital Berhad (Financial Services)...... 234,000 333,755
Boustead Holdings Berhad (Multi - Industry)...... 428,000 932,645
Commerce Asset-Holding Berhad (Banking).......... 576,422 1,518,701
DCB Holdings Berhad (Banking).................... 384,000 1,217,114
Diversified Resources Berhad (Automotive)........ 325,000 688,886
Gamuda Berhad (Construction & Housing)........... 41,000 143,760
Guinness Anchor Berhad (Food, Beverages &
Tobacco)....................................... 489,000 1,084,943
Hong Leong Properties Berhad (Real Estate)....... 341,000 387,745
IJM Corporation Berhad (Building Materials)...... 472,000 991,124
Industrial Oxygen Incorporated Berhad
(Agriculture).................................. 690,000 787,320
Konsortium Perkapalan Berhad (Transport &
Services)...................................... 263,000 1,552,573
Lingkaran Trans Kota Holdings Berhad
(Transportation)+.............................. 302,000 628,169
Malakoff Berhad (Agriculture).................... 280,000 1,220,283
Malayan Cement Berhad (Building Materials)....... 574,500 960,533
Malaysian Pacific Industries Berhad (Multi -
Industry)...................................... 268,000 1,167,986
Malaywata Steel Berhad (Metals & Mining)......... 300,000 463,549
Multi-Purpose Holdings Berhad (Multi -
Industry)...................................... 346,000 485,277
Perusahaan Otomobil Nasional Berhad
(Automotive)................................... 210,000 981,773
Petronas Dagangan Berhad (Oil-Services).......... 205,000 487,321
SECURITY DESCRIPTION SHARES VALUE
- ------------------------------------------------- ------------ -------------
MALAYSIA (CONTINUED)
Road Builder (M) Holdings Berhad (Multi -
Industry)...................................... 273,000 $ 1,287,122
Sime Darby Berhad (Multi - Industry)............. 345,000 1,148,176
Sime U.E.P. Properties Berhad (Real Estate)...... 103,000 222,405
Tanjong Co. Berhad (Entertainment, Leisure &
Media)......................................... 281,000 968,580
Telekom Malaysia Berhard (Telecommunications).... 251,000 1,173,453
United Merchant Group Berhad (Financial
Services)...................................... 604,000 837,558
-------------
21,670,751
-------------
PHILIPPINES (6.1%)
Alaska Milk Corp. (Food, Beverages & Tobacco)+... 8,736,300 844,615
Ayala Corp. (Class B) (Multi - Industry)......... 96,125 69,244
Benpres Holdings Corp (GDR) (Multi -
Industry)+..................................... 155,600 1,089,200
C & P Homes, Inc. (Construction & Housing)....... 1,139,000 427,513
Digital Telecom Phils. Inc.
(Telecommunications)........................... 2,848,000 275,341
Engineering & Equipment Corp. (Industrial)....... 4,001,000 166,860
Fil-Estate Land Inc. (Real Estate)............... 295,800 86,353
Filinvest Land Inc. (Building Materials)+........ 3,542,000 886,305
First Philippine Holdings Corp. (Class B) (Multi
- Industry).................................... 538,625 745,367
Ionics Circuit Inc (Electronics)+................ 1,529,650 840,913
La Tondena Distillers Inc. (Food, Beverages &
Tobacco)....................................... 136,000 327,419
Manila Electric Company (Class B) (Electric)..... 9,771 48,159
Metropolitan Bank & Trust Co. (Banking).......... 13,075 277,601
Petron Corp. (Oil-Services)...................... 194,655 49,446
Philippine Commercial International Bank
(Banking)...................................... 54,600 527,866
</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, 1997
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SECURITY DESCRIPTION SHARES VALUE
- ------------------------------------------------- ------------ -------------
<S> <C> <C>
PHILIPPINES (CONTINUED)
Pryce Properties Corp. (Real Estate)+............ 14,336,775 $ 978,396
Universal Rightfield Property Holdings, Inc.
(Real Estate)+................................. 2,157,000 224,892
-------------
7,865,490
-------------
SINGAPORE (10.4%)
City Developments Ltd. (Real Estate)............. 165,000 1,615,554
DBS Land Ltd. (Real Estate)...................... 102,000 322,439
Development Bank of Singapore Ltd. (Banking)..... 43,000 541,316
Hotel Properties Ltd. (Restaurants & Hotels)..... 428,000 727,377
Kim Eng Holdings Ltd. (Financial Services)....... 757,000 635,311
Osprey Maritime Ltd. (Transport & Services)...... 317,500 415,236
Pacific Century Regional Development (Multi -
Industry)+..................................... 430,000 598,454
Sembawang Maritime Ltd. (Transport & Services)... 365,000 1,143,616
Singapore Airlines Ltd. (Airlines)............... 171,000 1,530,790
Singapore Press Holdings Ltd. (Entertainment,
Leisure & Media)............................... 37,000 745,253
Singapore Telecommunications Ltd.
(Telecommunications)........................... 516,000 952,715
Super Coffeemix Manufacturing Ltd. (Food,
Beverages & Tobacco)........................... 1,078,000 897,171
United Overseas Bank Ltd. (Banking).............. 221,310 2,275,244
Wong's Circuits Holdings Ltd.
(Semiconductors)+.............................. 559,000 939,120
-------------
13,339,596
-------------
SOUTH KOREA (5.2%)
Dae Duck Electronics Co. (Electronics)........... 7,700 485,585
Dong Ah Construction Industrial Co. Ltd.
(Construction & Housing)....................... 7,943 150,273
SECURITY DESCRIPTION SHARES VALUE
- ------------------------------------------------- ------------ -------------
SOUTH KOREA (CONTINUED)
Dongbu Insurance Co. Ltd. (Insurance)+........... 7,310 $ 212,385
Hana Bank (Banking).............................. 21,396 265,040
Hansol Chemical Company Ltd. (Chemicals)......... 20,864 469,910
Hansol Paper Co. Ltd. (GDS) (Forest Products &
Paper)+........................................ 5,037 64,851
Hanwha Chemical Corp. (Chemicals)+............... 43,385 341,999
Hyundai Engineering & Construction Co.
(Construction & Housing)+...................... 81 2,080
Korea Electric Power Corp. (Electric)............ 46,300 1,381,700
Korea Long Term Credit Bank (Banking)............ 22,502 347,159
S.K. Telecom Co. Ltd. (Telecommunications)....... 466 351,339
Korea Zinc Co. Ltd. (Metals & Mining)............ 14,100 325,507
L.G. Information & Communication Ltd.
(Telecommunications-Equipment)................. 2,700 334,459
Pohang Iron & Steel Co. Ltd. (Metals & Mining)... 7,660 779,042
Samsung Electronics Co. Ltd. (GDR represents 1/2
non-voting preferred share) (144A)
(Electronics).................................. 16,610 448,470
Samsung Electronics Co. Ltd. (GDR represents 1/2
voting common share)(144A) (Electronics)+...... 1,442 83,636
Tong Yang Cement Co. (Building Materials)........ 13,000 243,018
Tong Yang Confectionery Co. Ltd. (Food, Beverages
& Tobacco)..................................... 11,800 321,576
-------------
6,608,029
-------------
</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, 1997
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SECURITY DESCRIPTION SHARES VALUE
- ------------------------------------------------- ------------ -------------
<S> <C> <C>
TAIWAN (1.3%)
Asia Cement Corp. (GDR) (Building Materials)..... 41,751 $ 671,147
Asustek Computer Inc. (Computer Peripherals)..... 22,600 255,945
China Steel Corp. (GDR) (Metals & Mining)........ 887 18,937
Hocheng Group Corp. (GDR) (144A) (Building
Materials)..................................... 1 8
Microelectronics Technology Inc. (GDS)
(Telecommunications)+.......................... 46,000 368,000
President Enterprises Corp. (GDR) (144A) (Food,
Beverages & Tobacco)+.......................... 14,600 284,700
-------------
1,598,737
-------------
THAILAND (9.1%)
Bangkok Bank Public Co. Ltd. (Banking)........... 302,100 2,075,807
Central Pattana Public Co. Ltd. (Real Estate).... 194,500 270,295
Electricity Generating Public Co. Ltd.
(Electric)..................................... 368,400 903,046
K.R. Precision Public Co. Ltd. (Computer
Peripherals)................................... 98,400 706,520
Krung Thai Bank Public Co. Ltd. (Banking)........ 409,700 430,972
Lanna Lignite Public Co. Ltd. (Metals &
Mining)........................................ 100,700 711,372
Regional Container Line Public Co. Ltd.
(Packaging & Containers)....................... 64,800 385,223
Robinson Department Store Public Co. Ltd.
(Retail)....................................... 424,200 155,565
Sermsuk Public Co. Ltd. (Food, Beverages &
Tobacco)....................................... 10,400 224,821
Shinawatra Computer Public Co. Ltd. (Computer
Systems)....................................... 134,600 930,067
Siam Cement Public Co. Ltd. (Building
Materials)..................................... 57,500 994,402
Siam Commercial Bank Public Co. Ltd. (Banking)... 144,200 590,048
<CAPTION>
SECURITY DESCRIPTION SHARES VALUE
- ------------------------------------------------- ------------ -------------
<S> <C> <C>
THAILAND (CONTINUED)
Swedish Motor Public Co. Ltd. (Capital Goods).... 178,000 $ 98,774
TelecomAsia Corporation Public Co. Ltd.
(Telecommunications)+.......................... 876,200 1,056,987
Thai Farmers Bank Public Co. Ltd. (Banking)...... 383,400 1,628,025
United Communication Industry Public Co. Ltd.
(Telecommunications-Equipment)................. 124,900 515,896
-------------
11,677,820
-------------
TOTAL COMMON STOCK (COST $113,382,791)......... 114,503,864
-------------
CONVERTIBLE PREFERRED STOCKS (0.5%)
PHILIPPINES (0.5%)
Philippine Long Distance Telephone Co. (GDS
represtents 1 Series 2 Convertible Preferred
Share (Telecommunications) (COST $683,225)..... 20,000 700,000
-------------
PREFERRED STOCK (0.1%)
SOUTH KOREA (0.1%)
Shin Won Corp. (Apparels & Textiles) (COST
$235,943)...................................... 12,040 75,928
-------------
RIGHTS (0.1%)
INDONESIA (0.0%)*
P.T. Bank Pan Indonesia, Expiring 8/1/97
(Banking)+..................................... 357,125 51,406
-------------
MALAYSIA (0.0%)*
Commerce Asset-Holding Berhad, Expiring 7/21/97
(Banking)+..................................... 115,284 4,111
-------------
</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, 1997
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SECURITY DESCRIPTION SHARES VALUE
- ------------------------------------------------- ------------ -------------
<S> <C> <C>
SINGAPORE (0.1%)
Osprey Maritime Ltd. (Preferred), Expiring
7/24/97 (Transportation)+...................... 171,450 $ 0
Osprey Maritime Ltd., Expiring 7/24/97
(Transportation)+.............................. 317,500 93,261
-------------
93,261
-------------
TOTAL RIGHTS (COST $31,531).................... 148,778
-------------
WARRANTS (0.4%)
MALAYSIA (0.4%)
Commerce Asset-Holding Berhad, Expiring 07/21/97
(Banking)+..................................... 72,052 11,133
Petronas Dagangan Berhad, Expiring 2/24/99
(Retail)+...................................... 412,000 479,904
-------------
491,037
-------------
TOTAL WARRANTS (COST $601,132)................. 491,037
-------------
<CAPTION>
PRINCIPAL
AMOUNT
------------
<S> <C> <C>
CONVERTIBLE BONDS (2.1%)
TAIWAN (1.2%)
Far Eastern Department Stores Ltd., 3.00% due
07/06/01 (Retail).............................. $ 600,000 649,500
Nan Ya Plastics Corp., 1.75% due 07/19/01
(Chemicals).................................... 380,000 543,400
U-Ming Marine Transport Corp., 1.50% due 02/07/01
(Transport & Services)......................... 370,000 303,400
-------------
1,496,300
-------------
<CAPTION>
PRINCIPAL
SECURITY DESCRIPTION AMOUNT VALUE
- ------------------------------------------------- ------------ -------------
<S> <C> <C>
THAILAND (0.9%)
Asia Credit Public Co. Ltd., 3.75% due 11/17/03
(Financial Services)........................... $ 1,903,000 $ 1,165,588
-------------
TOTAL CONVERTIBLE BONDS (COST $2,448,585)...... 2,661,888
-------------
SHORT-TERM INVESTMENTS (5.8%)
TIME DEPOSITS--FOREIGN (5.8%)
State Street Bank Cayman Islands, 5.25% due
07/01/97 (cost $7,413,000)..................... 7,413,000 7,413,000
-------------
TOTAL INVESTMENTS (COST $124,796,207) (98.5%)..................
125,994,495
OTHER ASSETS IN EXCESS OF LIABILITIES (1.5%)...................
1,968,278
-------------
NET ASSETS (100.0%)............................................ $ 127,962,773
-------------
-------------
</TABLE>
- ------------------------------
Note: The cost of securities for Federal Income Tax purposes at June 30, 1997,
was $125,766,838, the aggregate gross unrealized appreciation and depreciation
was $14,092,937 and $13,865,280 respectively, resulting in net unrealized
appreciation of $227,657.
+ - Non-income producing security.
ADR - American Depository Receipts.
GDR - Global Depository Receipts.
GDS - Global Depository Shares.
144A - Securities restricted for resale to Qualified Institutional Buyers.
* Less than 0.1%.
The Accompanying Notes are an Integral Part of the Financial Statements.
22
<PAGE>
THE ASIA GROWTH PORTFOLIO
SCHEDULE OF INVESTMENTS (UNAUDITED)(CONTINUED)
JUNE 30, 1997
- --------------------------------------------------------------------------------
INDUSTRY DIVERSIFICATION
<TABLE>
<CAPTION>
PERCENT OF
PORTFOLIO
----------
<S> <C>
Multi-Industry 16.4%
Real Estate 13.1
Banking 12.1
Telecommunications 7.1
Electronics 5.9
Short-term Investments 5.9
Food, Beverages & Tobacco 5.2
Building 4.1
Transportation 3.4
Retail 3.3
Financial Services 2.4
Metals & Mining 2.1
Natural Gas 2.0
Chemicals 2.0
Automotive 1.9
Agriculture 1.6
Computer Peripherals 1.5
Construction & Housing 1.5
Entertainment, Leisure, Media 1.4
Airlines 1.2
Restaurants & Hotels 1.2
Wholesale & International Trade 1.0
Semiconductors 0.8
Capital Goods 0.6
Textiles 0.5
Pharmaceuticals 0.5
Oil Services 0.4
Packaging & Containers 0.3
Insurance 0.2
Industrials 0.1
Machinery 0.1
Apparels & Textiles 0.1
Forest Products & Paper 0.1
----------
100.0%
----------
----------
</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, 1997
- --------------------------------------------------------------------------------
<TABLE>
<S> <C>
ASSETS
Investments at Value (Cost $124,796,207 ) $125,994,495
Foreign Currency at Value (Cost $1,026,743 ) 1,023,653
Cash 173
Receivable for Investments Sold 3,309,601
Unrealized Appreciation of Forward Foreign
Currency Contracts 234,259
Dividends Receivable 139,927
Interest Receivable 71,772
Deferred Organization Expenses 18,448
Prepaid Trustees' Fees 8
Prepaid Expenses and Other Assets 197
------------
Total Assets 130,792,533
------------
LIABILITIES
Payable for Investments Purchased 2,593,495
Custody Fee Payable 100,485
Advisory Fee Payable 82,285
Organization Expenses Payable 5,750
Administrative Services Fee Payable 3,193
Fund Services Fee Payable 107
Administration Fee Payable 319
Accrued Expenses 44,126
------------
Total Liabilities 2,829,760
------------
NET ASSETS
Applicable to Investors' Beneficial Interests $127,962,773
------------
------------
</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, 1997
- --------------------------------------------------------------------------------
<TABLE>
<S> <C> <C>
INVESTMENT INCOME
Dividend Income (Net of Foreign Withholding Tax
of $173,797) $ 1,306,155
Interest Income 166,236
-----------
Investment Income 1,472,391
EXPENSES
Advisory Fee $ 487,090
Custodian Fees and Expenses 175,546
Professional Fees and Expenses 24,068
Administrative Services Fee 19,066
Printing Expenses 3,864
Amortization of Organization Expenses 3,285
Fund Services Fee 2,056
Administration Fee 1,506
Trustees' Fees and Expenses 1,041
Insurance Expense 233
Miscellaneous 529
-----------
Total Expenses 718,284
-----------
NET INVESTMENT INCOME 754,107
NET REALIZED GAIN (LOSS) ON
Investment Transactions 959,049
Foreign Currency Transactions (40,295)
-----------
Net Realized Gain 918,754
NET CHANGE IN UNREALIZED APPRECIATION
(DEPRECIATION) OF
Investments (5,985,942)
Foreign Currency Contracts and Translations 229,684
-----------
Net Change in Unrealized Depreciation (5,756,258)
-----------
NET DECREASE IN NET ASSETS RESULTING FROM
OPERATIONS $(4,083,397)
-----------
-----------
</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 SIX
MONTHS ENDED
JUNE 30, FOR THE FISCAL
1997 YEAR ENDED
(UNAUDITED) DECEMBER 31, 1996
------------ -----------------
<S> <C> <C>
INCREASE IN NET ASSETS
FROM OPERATIONS
Net Investment Income $ 754,107 $ 1,059,172
Net Realized Gain on Investment and Foreign
Currency Transactions 918,754 4,084,160
Net Change in Unrealized Appreciation
(Depreciation) of Investments and Foreign
Currency Contracts and Translations (5,756,258) 4,768,791
------------ -----------------
Net Increase (Decrease) in Net Assets
Resulting from Operations (4,083,397) 9,912,123
------------ -----------------
------------ -----------------
TRANSACTIONS IN INVESTORS' BENEFICIAL INTERESTS
Contributions 52,693,591 85,257,294
Withdrawals (42,919,975) (59,878,251)
------------ -----------------
Net Increase from Investors' Transactions 9,773,616 25,379,043
------------ -----------------
Total Increase in Net Assets 5,690,219 35,291,166
NET ASSETS
Beginning of Period 122,272,554 86,981,388
------------ -----------------
End of Period $127,962,773 $ 122,272,554
------------ -----------------
------------ -----------------
</TABLE>
- --------------------------------------------------------------------------------
SUPPLEMENTARY DATA
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
FOR THE PERIOD
FOR THE SIX APRIL 5, 1995
MONTHS ENDED FOR THE (COMMENCEMENT OF
JUNE 30, FISCAL YEAR OPERATIONS) TO
1997 ENDED DECEMBER 31,
(UNAUDITED) DECEMBER 31, 1996 1995
------------ ----------------- ----------------
<S> <C> <C> <C>
RATIOS TO AVERAGE NET ASSETS
Expenses 1.18%(a) 1.19% 1.40%(a)
Net Investment Income 1.24%(a) 0.94% 1.18%(a)
Decrease Reflected in Expense Ratio due to
Expense Reimbursement -- 0.01% --
Portfolio Turnover 75% 93% 70%
Average Brokerage Commissions $ 0.0064 $ 0.0069 --
</TABLE>
- ------------------------
(a) 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, 1997
- --------------------------------------------------------------------------------
1. ORGANIZATION AND SIGNIFICANT ACCOUNTING POLICIES
The Asia Growth Portfolio (the "Portfolio"), is one of eight subtrusts
(portfolios) comprising The Series Portfolio (the "Series Portfolio"). The
Series Portfolio is registered under the Investment Company Act of 1940, as
amended, as a no load 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's investment objective is to achieve a high total return from a
portfolio of equity securities of companies in Asian growth markets. The
Portfolio commenced operations on April 5, 1995. 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 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 average of readily available closing bid
and asked prices 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 include the use
of independent pricing services, which use prices based upon yields or
prices of securities of comparable quality, coupon, maturity and type;
indications as to values from dealers; and general market conditions. All
portfolio securities with a remaining maturity of less than 60 days are
valued at amortized cost.
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 expenses are
translated at the
27
<PAGE>
THE ASIA GROWTH PORTFOLIO
NOTES TO FINANCIAL STATEMENTS (UNAUDITED) (CONTINUED)
JUNE 30, 1997
- --------------------------------------------------------------------------------
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 as of 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 currency translations. At June 30,
1997, the Portfolio had open forward foreign currency contracts as
follows:
SUMMARY OF OPEN FORWARD FOREIGN CURRENCY CONTRACTS
<TABLE>
<CAPTION>
U.S. DOLLAR
VALUE AT UNREALIZED
SALES CONTRACTS PROCEEDS 6/30/97 APPRECIATION
- ------------------------------------------------- ----------- ----------- ------------
<S> <C> <C> <C>
Thailand Baht 346,515,000, expiring 11/17/97..... $13,000,000 $12,765,741 $ 234,259
</TABLE>
e)The Portfolio's custodian takes possession of the collateral pledged for
investments in repurchase agreements on behalf of the Portfolio. It is the
policy of the Portfolio to value the underlying collateral daily on a
mark-to-market basis to determine that the value, including accrued
interest, is at least equal to the repurchase price plus accrued interest.
In the event of default of the obligation to repurchase, the Portfolio has
the right to liquidate the collateral and apply the proceeds in
satisfaction of the obligation. Under certain circumstances, in the event
of default or bankruptcy by the other party to the agreement, realization
and/or retention of the collateral or proceeds may be subject to legal
proceedings.
f)The Portfolio intends to be treated as a partnership for federal income
tax purposes. As such, each investor in the Portfolio will be taxed on its
share of the Portfolio's ordinary income and capital gains. It
28
<PAGE>
THE ASIA GROWTH PORTFOLIO
NOTES TO FINANCIAL STATEMENTS (UNAUDITED) (CONTINUED)
JUNE 30, 1997
- --------------------------------------------------------------------------------
is intended that the Portfolio's assets will be managed in such a way that
an investor in the Portfolio will be able to satisfy the requirements of
Subchapter M of the Internal Revenue Code. The Portfolio earns foreign
income which may be subject to foreign withholding taxes at various rates.
g)The Portfolio incurred organization expenses in the amount of $33,000.
Morgan Guaranty Trust Company of New York ("Morgan") has agreed to pay
organization expenses of the Portfolio. The Portfolio has agreed to
reimburse Morgan for these costs which are being deferred and will be
amortized on a straight-line basis over a period not to exceed five years
beginning with the commencement of operations of the Portfolio.
h)Expenses incurred by the Series Portfolio with respect to any two or more
portfolios in the Series Portfolio are allocated in proportion to the net
assets of each portfolio in the Series Portfolio, except where allocations
of direct expenses to each portfolio can otherwise be made fairly.
Expenses directly attributable to a portfolio are charged to that
portfolio.
2. TRANSACTIONS WITH AFFILIATES
a)The Portfolio has an Investment Advisory Agreement with 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, 1997, such fees amounted to $487,090.
b)The Portfolio has retained Funds Distributor, Inc. ("FDI"), a registered
broker-dealer, to serve as the co-administrator and exclusive placement
agent. Under a Co-Administration Agreement between FDI and the Portfolio,
FDI 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 officers
affiliated with FDI. The Portfolio has agreed to pay FDI fees equal to its
allocable share of an annual complex-wide charge of $425,000 plus FDI's
out-of-pocket expenses. The amount allocable to the Portfolio is based on
the ratio of the Portfolio's net assets to the aggregate net assets of The
JPM Pierpont Funds, The JPM Institutional Funds, the Portfolio and the
other portfolios in which The JPM Pierpont Funds and The JPM Institutional
Funds invest (the "Master Portfolios"), JPM Series Trust, JPM Series Trust
II and certain other investment companies subject to similiar agreements
with FDI. For the six months ended June 30, 1997, the fee for these
services amounted to 1,506.
c)The Portfolio has an Administrative Services Agreement (the "Services
Agreement") with Morgan under which Morgan is responsible for overseeing
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 allocable share of an annual complex-wide charge. This charge
is calculated daily based on the aggregate net assets of the Master
Portfolios and JPM Series Trust in accordance with the following annual
schedule: 0.09% on the first $7 billion of their aggregate average daily
net assets and 0.04% of their aggregate average daily net assets in excess
of $7 billion less the complex-wide fees payable to FDI. The portion of
this charge payable by the Portfolio is determined by the proportionate
share its net assets
29
<PAGE>
THE ASIA GROWTH PORTFOLIO
NOTES TO FINANCIAL STATEMENTS (UNAUDITED) (CONTINUED)
JUNE 30, 1997
- --------------------------------------------------------------------------------
bear to the net assets of the Master Portfolios, other investors in the
Master Portfolios for which Morgan provides similiar services and JPM
Series Trust. For the six months ended June 30, 1997, the fee for these
services amounted to $19,066.
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 $2,056 for the six months ended June 30, 1997.
e)An aggregate annual fee of $75,000 is paid to each Trustee for serving as
a Trustee of The JPM Pierpont Funds, The JPM Institutional Funds, the
Master Portfolios and JPM Series Trust. The Trustees' Fees and Expenses
shown in the financial statements represent the Portfolio's allocated
portion of the total fees and expenses. Prior to April 1, 1997, the
aggregate annual Trustee Fee was $65,000. The Portfolio's Chairman and
Chief Executive Officer also serves as Chairman of Group and received
compensation and employee benefits from Group in his role as Group's
Chairman. The allocated portion of such compensation and benefits included
in the Fund Services Fee shown in the financial statements was $400.
3. INVESTMENT TRANSACTIONS:
Investment transactions (excluding short-term investments) for the six months
ended June 30, 1997 were as follows:
<TABLE>
<CAPTION>
COST OF PROCEEDS
PURCHASES FROM SALES
- ---------------------- -----------
<S> <C>
$98,059,790............ $89,075,848
</TABLE>
30
