<PAGE>
- --------------------------------------------------------------------------------
PANORAMA TRUST
PICTET GLOBAL EMERGING MARKETS FUND
PICTET INTERNATIONAL SMALL COMPANIES FUND
PICTET EASTERN EUROPEAN FUND
- --------------------------------------------------------------------------------
[Logo] PICTET
SEMI-ANNUAL REPORT
JUNE 30, 1998
<PAGE>
TABLE OF CONTENTS
Page
----
PORTFOLIO OF INVESTMENTS
Global Emerging Markets Fund .......................................... 1
International Small Companies Fund .................................... 10
Eastern European Fund ................................................. 15
FINANCIAL STATEMENTS
Statements of Assets and Liabilities .................................. 18
Statements of Operations .............................................. 19
Statements of Changes in Net Assets ................................... 20
Financial Highlights .................................................. 23
Notes to Financial Statements ......................................... 26
<PAGE>
<TABLE>
PANORAMA TRUST
PICTET GLOBAL EMERGING MARKETS FUND
- -------------------------------------------------------------------------------------------------
PORTFOLIO OF INVESTMENTS JUNE 30, 1998 (UNAUDITED)
- -------------------------------------------------------------------------------------------------
<CAPTION>
VALUE
SHARES (NOTE 1)
- -------------------------------------------------------------------------------------------------
<S> <C>
COMMON STOCKS -- 94.5%
ARGENTINA - 1.9%
139,320 Central Puerto SA, Class B $ 326,056
136,500 Nobleza Piccardo SA@ 552,905
41,000 Quilmes Industrial SA - ADR 399,750
23,362 Telefonica De Argentina, Class B, ADR 757,740
------------
2,036,451
------------
BAHRAIN - 0.5%
50,000 Arab Insurance Group, Sponsored GDR+@ 582,500
------------
BRAZIL - 2.4%
141,764 Confeccoes Guararapes SA@ 422,883
49,000 Souza Cruz SA 364,360
10,056,000 Telecomunicacoes Brasileiras - Telebras ON 799,924
55,700 Vale do Rio Doce 987,289
------------
2,574,456
------------
CANADA - 0.5%
81,000 Dorale Energy Corporation, Sponsored GDR 583,200
------------
CHINA - 4.9%
3,018,000 Anhui Conch Cement Company Ltd., Class H+ 420,681
1,500,000 Beijing Datang Power Generation Company Ltd., Class H+ 421,076
415,200 China International Marine Containers Ltd., Class B 214,352
151,000 Eastern Communications Company Ltd., Class B 88,788
1,716,000 Founder Hong Kong Ltd. 730,872
470,000 Guangdong Kelon Electric Holding, Class H 370,031
1,636,500 Heilongjiang Electric Power Company Ltd., Class B+ 621,870
827,000 Qingling Motor Company Ltd., Class H 229,485
800,000 Shanghai Dazhong Taxi Company, Class B+ 436,800
227,500 Shenzen Fangda Company Ltd., Class B+ 167,953
430,000 China Telecom 746,451
700,000 Wuxi Little Swan Company Ltd., Class B 622,483
1,980,000 Zhenhai Refining & Chemical Company Ltd. 255,549
------------
5,326,391
------------
CZECH REPUBLIC - 2.6%
53,300 Ceska Sporitelna AS 438,064
19,000 Ceske Energeticke Zavody AS+ 525,577
130,000 SPT Telekom AS+ 1,798,025
------------
2,761,666
------------
EGYPT - 1.7%
7,100 Alexandria Real Estate Investment Company 329,207
11,000 Arabian International Construction 464,346
10,329 Egyptian International Pharmaceuticals Investments Company@ 660,087
200 Egyptian Financial and Industrial Company 4,280
50 Egyptian Starch & Glucose Manufacturing Company+@ 506
18,960 Oriental Weavers Company 386,565
------------
1,844,991
------------
GREECE - 7.8%
13,950 Alpha Credit Bank 1,131,013
16,000 Athens Medical Care SA+ 315,035
8,800 Commercial Bank of Greece 652,870
42,000 Delta Dairy SA+ 501,150
12,500 Ergo Bank SA 1,068,511
24,000 Ethniki General Insurance 567,616
18,000 Hellenic Bottling Company SA 556,176
81,000 Hellenic Petroleum SA 661,643
24,444 Hellenic Telecommunication Organization SA 626,739
28,013 Intracom SA 948,887
41,100 Intrasoft SA 810,598
3,900 Minoan Lines SA 96,532
5,000 Stet Hellas Telecom SA, ADR 207,500
29,900 Tiletypos SA 275,196
------------
8,419,466
------------
HUNGARY - 1.1%
11,500 Matav Rt., ADR 338,531
32,700 Magyar Olaj-es Gazipari, Series A, GDR 881,265
------------
1,219,796
------------
INDIA - 7.8%
48,000 Bajaj Auto GDR 640,800
37,000 Hindalco Industries, GDR+ 516,150
62,000 ICICI, GDR 628,525
188,647 India Access Fund+ 1,344,110
128,500 Larsen & Toubro Ltd., GDR+ 1,172,563
44,000 Mahanager Telephone Nigam Ltd., Sponsored GDR+ 448,800
120,000 Reliance Industries Ltd., GDR 792,000
82,100 State Bank of India, GDR 968,780
30,000 Tata Engineering & Locomotive - GDR 96,000
281,800 The India Fund Inc. 1,796,475
------------
8,404,203
------------
INDONESIA - 3.3%
50,100 Asia Pulp & Paper, ADR 563,625
2,629,800 Barito Pacific Timber+@ 66,393
5,425,000 Ramayana Lestari Sentosa@ 490,657
1,395,000 Semen Gresik 907,848
5,466,000 Telekomunikasi Indonesia, Series B 1,588,017
------------
3,616,540
------------
ISRAEL - 4.7%
330,000 Bank Hapoalim Ltd. 998,337
505,000 Bank Leumi Le Israel 1,007,495
16,300 Gilat Satellite Networks Ltd.+ 545,031
65,000 Indigo NV+ 385,938
476,949 Machteshim-Agan Industries Ltd. 1,518,292
16,600 Nice Systems ADR 622,500
------------
5,077,593
------------
JORDAN - 0.1%
36,100 Jordan Phosphate Mines 122,872
------------
KENYA - 1.0%
356,000 Kenya Breweries Ltd.@ 317,056
196,026 Kenya Commercial Bank Ltd.@ 230,580
174,708 Kenya Power & Lighting Company Ltd.@ 557,797
------------
1,105,433
------------
LEBANON - 0.7%
23,400 Banque du Liban et d'Outre Mer, Sponsored GDR 773,370
------------
MALAYSIA - 3.8%
425,000 Genting Berhad 768,026
382,000 Kuala Lumpur Kepong Berhad 616,686
225,000 Malaysian Assurance Alliance Berhad 195,169
330,000 Malaysian Banking Berhad 332,449
268,000 Malaysian Pacific Industries Berhad 316,415
200,000 Nestle Malay Berhad 905,970
168,000 Perusahaan Otomobil Nasional Berhad 107,271
247,000 Star Publications (Malaysia) Berhad 207,110
464,000 Telekom Malaysia Berhad 782,603
------------
4,231,699
------------
MEXICO - 4.4%
340,000 Embotelladores del Valle de Anahuac SA, Class B+ 204,329
158,000 Grupo Financiero Banamex, Class L+ 254,966
2,089,000 Grupo Financiero Bancomer, SA de CV, Class B+ 778,828
36,000 Grupo Televisa SA, GDR+ 1,354,500
45,900 Telefonos de Mexico SA, Class L, Sponsored ADR 2,206,069
------------
4,798,692
------------
MOROCCO - 0.6%
2,750 ONA SA 332,482
2,750 WAFABANK 329,944
------------
662,426
------------
PAKISTAN - 1.0%
22,000 DG Khan Cement+@ 2,195
210,000 Fauji Fertilizer Company Ltd. 227,741
500 Nishat Textile+@ 87
21,647 Pakistan Refinery, Ltd. 10,329
42,276 Pakistan State Oil Company Ltd. 67,808
1,580,000 Pakistan Telecom Corporation, Class A 555,167
1,027,611 Sui Northern Gas Pipelines Ltd.+ 195,024
------------
1,058,351
------------
PERU - 0.6%
46,550 Southern Peru Copper Corporation 605,150
------------
PHILIPPINES - 4.0%
4,266,000 Cosmos Bottling Company@ 480,820
6,000,000 Filinvest Land Inc.+ 253,237
5,583,000 International Container Terminal Services, Inc.+@ 635,953
309,780 Manila Electric Company, Class B 817,165
28,000 Philippine Long Distance Telephone Company, ADR 633,500
384,000 San Miguel Corporation, Class B 506,475
6,491,400 SM Prime Holdings Inc. 1,027,415
------------
4,354,565
------------
POLAND - 2.2%
37,250 Bank Handlowy Ordinary, GDR 708,681
25,000 Bank Handlowy W Warszawie+ 476,771
48,500 Elektrim SA 591,124
137,000 KGHM Polska Miedz SA 550,043
------------
2,326,619
------------
RUSSIA - 0.0%#
26 AO Norilsk Nickel, Barings RDC, (Represents 500 Shares)+@ 26,976
------------
SLOVAKIA - 0.3%
2,700 Chirana Prema AS+@ 9,998
5,326 Nafta Gbely AS@ 68,270
26,000 VSZ AS@ 214,778
------------
293,046
------------
SOUTH AFRICA - 13.7%
70,000 Amalgamated Banks of South Africa Ltd. 436,762
19,200 Anglo American Corporation 647,555
104,000 Anglo American Platinum Corporation Ltd. 1,131,197
56,240 Anglogold Ltd. 2,266,671
69,000 Bidvest Group Ltd. 526,518
260,000 Dimension Data Holdings Ltd.+ 1,403,035
79,000 Fedsure Holdings Ltd.+ 959,191
261,000 Harmony Gold Mining Company, Ltd.+ 1,078,331
12,000 Investec Group Ltd. 465,430
65,000 JD Group Ltd. 437,352
44,000 Liberty Life Association of Africa Ltd. 857,740
770,000 Metro Cash and Carry Ltd. 486,931
120,000 Nampak Ltd. 283,306
53,400 Nedcor Ltd. 1,152,648
330,000 New Clicks Holdings Ltd. 414,587
105,000 Persetel Q Data Holdings Ltd. 938,449
37,000 South African Breweries 761,214
147,000 Standard Bank Investment 627,167
------------
14,874,084
------------
SOUTH KOREA - 3.8%
153,000 Korea Electric Power Corporation 1,632,520
22,320 Pohang Iron & Steel Company Ltd. 630,747
20,035 Samsung Display Devices Company 547,205
24,360 Samsung Electronics Company 754,042
3,506 Samsung Fire & Marine Insurance Company 584,759
------------
4,149,273
------------
SRI LANKA - 0.4%
130,356 John Keells Holdings Ltd. 378,710
------------
TAIWAN - 4.9%
410,374 Accton Technology Corporation, GDR+ 1,302,936
75,750 Acer Inc. 87,301
116,000 Asia Cement Corporation, GDR+ 1,058,500
404,400 Cathay Life Insurance Corporation 1,235,779
939,600 Everest Textile Company Ltd. 1,025,451
1,029,000 Walsin Lihwa Corporation 586,966
------------
5,296,933
------------
THAILAND - 3.2%
235,900 Advanced Information Service Public Company, Ltd. (F) 1,062,109
51,200 Bangkok Bank Public Company Ltd. (F) 63,090
80,600 Delta Electronics Public Company Ltd.+ 458,389
41,200 Delta Electronics Public Company (F) 234,313
766,700 Electricity Generating Power Company (F) 1,190,020
90,300 Grammy Entertainment Public Company Ltd.@ 192,583
10,000 Grammy Entertainment Public Company Ltd. (F)@ 21,328
684,000 TelecomAsia Corporation Public Company Ltd. (F)+ 202,607
------------
3,424,439
------------
TURKEY - 10.2%
16,320,000 Akbank TAS 527,045
9,180,000 Akbank TAS, Receipts 296,463
15,491,750 Aksa Akrilik Kimya Sanayii AS 482,845
19,235,000 Aksigorta AS 1,245,977
3,500,000 Alarko Holdings 946,301
3,859,000 Eczacibasi Ilac Sanayi ve Ticaret AS 199,255
19,300,000 Haci Omer Sabanci Holding AS+ 1,195,832
11,000,000 Hurriyet Gazetecilik Ve Matb 567,968
7,000,000 Kartonsan Karton Sanayi ve Ticaret AS 545,437
6,500,000 Koc Holding AS 1,269,245
3,600,000 Kordsa Kord Bezi Sanayi ve Ticaret AS 574,540
1,406,000 Sarkuysan Electrolitik Bakir Sanayi ve Ticaret AS+ 101,635
6,240,600 Tupras Turkiye Petrol Rafinerileri AS+ 1,007,682
20,685,000 Turcas 1,029,201
39,380,000 Yapi Kredi Bankasi 1,005,572
------------
10,994,998
------------
VENEZUELA - 0.3%
157,555 Ceramica Carabobo, Class A@ 31,326
16,132 Ceramica Carabobo Class A, Sponsored ADR@ 44,363
11,050,666 Sudamtex de Venezuela, Class A@ 134,825
1,600,006 Venezolana de Pulp Y Papel, Class A@ 115,680
------------
326,194
------------
ZIMBABWE - 0.1%
387,000 Trans Zambesi Industries@ 48,348
------------
TOTAL COMMON STOCKS (COST $134,629,979) 102,299,431
------------
PREFERRED STOCKS -- 3.5%
BRAZIL - 3.3%
827 Banco Bradesco 7
1,796,000 Banco Itau SA 1,024,910
12,168,720 Caemi Mineracao e Metal SA+ 704,736
13,698,000 Companhia Energetica de Paranaense, "B" 127,914
9,291,000 Petroleo Brasileiro 1,727,176
59,900 Vale do Rio Doce, "B"+ 518
------------
3,585,261
------------
PHILIPPINES - 0.2%
988,333 Cosmos Bottling Company, Convertible Preferred 234,640
------------
TOTAL PREFERRED STOCKS (COST $3,622,549) 3,819,901
------------
RIGHTS -- 0.0%# (COST $0)
GREECE - 0.0%#
13,950 Alpha Credit Bank, Expire 07/24/1998+ 23,768
------------
TOTAL INVESTMENTS (COST $138,252,528*) 98.0% 106,143,100
OTHER ASSETS AND LIABILITIES (NET) 2.0 2,151,245
- -------------------------------------------------------------------------------------------------
NET ASSETS 100.0% $108,294,345
- -------------------------------------------------------------------------------------------------
* Aggregate cost for Federal tax purposes.
+ Non-income producing security.
# Amount represents less than 0.1%.
@ Illiquid Security. These are securities that the Adviser believes cannot be sold or disposed
of in the ordinary course of business within seven days at approximately the value at which
the Fund has valued the investment. The value of the denoted securities at June 30, 1998 was
$5,908,894, representing 5.5% of total net assets.
Abbreviations:
ADR American Depositary Receipt
(F) Foreign Shares
GDR Global Depositary Receipt
RDC Russian Depositary Certificates
See Notes to Financial Statements.
</TABLE>
<PAGE>
<TABLE>
PANORAMA TRUST
PICTET GLOBAL EMERGING MARKETS FUND
- -------------------------------------------------------------------------------------------------
PORTFOLIO OF INVESTMENTS (continued) JUNE 30, 1998 (UNAUDITED)
- -------------------------------------------------------------------------------------------------
AT JUNE 30, 1998, SECTOR DIVERSIFICATION OF THE FUND WAS AS FOLLOWS:
<CAPTION>
% OF NET VALUE
INDUSTRY DIVERSIFICATION ASSETS (NOTE 1)
- -------------------------------------------------------------------------------------------------
<S> <C> <C>
COMMON STOCKS:
Telecommunications 12.8% $ 13,876,369
Banking 12.5 13,632,990
Multi-Industry 8.9 9,652,584
Financial Services 5.9 6,374,451
Insurance 5.8 6,228,731
Utilities - Electrical and Gas 4.2 4,538,599
Beverage and Tobacco 3.9 4,258,765
Data Processing and Reproduction 3.6 3,870,156
Chemicals 2.9 3,155,703
Metals - Non Ferrous 2.6 2,829,516
Broadcasting and Publishing 2.4 2,595,748
Electrical and Electronics 2.2 2,414,010
Energy Equipment 2.2 2,360,702
Energy Sources 2.1 2,320,231
Business and Public Services 1.9 2,038,988
Metals - Steel 1.8 1,832,814
Appliances and Household Durables 1.6 1,746,556
Building Materials and Components 1.5 1,649,329
Real Estate 1.5 1,609,859
Textiles and Apparel 1.3 1,448,421
Food and Household 1.3 1,407,626
Forest Products and Paper 1.3 1,392,368
Merchandising 1.2 1,342,596
Industrial Components 1.2 1,263,141
Health and Personal Care 1.1 1,174,377
Gold Mines 1.0 1,078,331
Wholesale & International Trade 1.0 1,078,055
Automobiles 1.0 1,073,556
Electronic Components and Instruments 0.8 863,620
Miscellaneous Materials and Commodities 0.8 815,247
Leisure and Tourism 0.7 768,026
Transportation 0.7 747,684
Construction and Housing 0.4 464,346
Machinery and Engineering 0.4 395,936
- -------------------------------------------------------------------------------------------------
TOTAL COMMON STOCKS 94.5 102,299,431
PREFERRED STOCKS 3.5 3,819,901
RIGHTS 0.0# 23,768
- -------------------------------------------------------------------------------------------------
TOTAL INVESTMENTS 98.0% 106,143,100
OTHER ASSETS AND LIABILITIES (NET) 2.0 2,151,245
- -------------------------------------------------------------------------------------------------
NET ASSETS 100.0% $108,294,345
- -------------------------------------------------------------------------------------------------
# Amount represents less than 0.1%.
See Notes to Financial Statements.
</TABLE>
<PAGE>
<TABLE>
PANORAMA TRUST
PICTET GLOBAL EMERGING MARKETS FUND
- -------------------------------------------------------------------------------------------------
PORTFOLIO OF INVESTMENTS (continued) JUNE 30, 1998 (UNAUDITED)
- -------------------------------------------------------------------------------------------------
SCHEDULE OF FORWARD FOREIGN CURRENCY EXCHANGE CONTRACTS
<CAPTION>
CONTRACT
VALUE MARKET
CONTRACTS DATE VALUE
- -------------------------------------------------------------------------------------------------
<S> <C> <C>
FORWARD FOREIGN CURRENCY EXCHANGE CONTRACTS TO SELL
500,553 Hong Kong Dollar 07/03/98 $ 64,602
1,411,107 Philippine Pesos 07/03/98 33,836
8,198,995 Thai Bhat 07/03/98 194,262
- -------------------------------------------------------------------------------------------------
TOTAL FORWARD FOREIGN CURRENCY EXCHANGE CONTRACTS TO SELL
(CONTRACT AMOUNT $292,346) $292,700
- -------------------------------------------------------------------------------------------------
See Notes to Financial Statements.
</TABLE>
<PAGE>
<TABLE>
PANORAMA TRUST
PICTET INTERNATIONAL SMALL COMPANIES FUND
- -------------------------------------------------------------------------------------------------
PORTFOLIO OF INVESTMENTS JUNE 30, 1998 (UNAUDITED)
- -------------------------------------------------------------------------------------------------
<CAPTION>
VALUE
SHARES (NOTE 1)
- -------------------------------------------------------------------------------------------------
COMMON STOCKS -- 71.2%
AUSTRALIA - 2.6%
<S> <C>
82,800 Ci Technologies Group Ltd.+ $ 128,494
48,844 Computer Power Group Ltd.+ 124,312
----------
252,806
----------
AUSTRIA - 2.3%
1,300 Austria Haustechnik AG+ 49,694
1,300 Bank Austria AG (New)+ 105,834
500 Semperit Holdings AG 70,818
----------
226,346
----------
BELGIUM - 2.2%
500 Deceuninck Plastics Industries SA 169,400
2,000 Xeikon N.V., ADR 42,625
----------
212,025
----------
FINLAND - 1.6%
1,100 Fiskars OY AB, Class A+ 156,568
----------
FRANCE - 5.6%
2,700 GFI Industries SA 142,911
700 Le Carbone - Lorraine+ 62,061
630 Leon de Bruxelles+ 64,608
2,800 Stef-TFE+ 105,133
600 Strafor-Facom SA 58,653
1,088 Union Financiere de France Banque SA 119,675
----------
553,041
----------
GERMANY - 6.6%
300 Aixtron AG 50,413
4,450 Data Modul AG 293,689
600 Deutsche Pfandbrief-und Hypothekenbank AG 48,051
500 Duetsha Ptandbrief AG 39,931
150 Pfeiffer Vacuum Technology AG 75,037
1,000 TDS Information Technology+ 53,131
3,000 Teldafax AG 86,518
----------
646,770
----------
HONG KONG - 2.2%
576,000 Techtronic Industries Company+ 118,947
25,000 VTech Holdings Ltd.+ 93,089
----------
212,036
----------
IRELAND - 1.4%
25,000 IWP International Plc 143,172
----------
ITALY - 2.0%
11,700 CSP International Industria Calze SpA+ 111,946
16,900 Pagnossin SpA+ 89,458
----------
201,404
----------
JAPAN - 3.7%
5,000 Biofermin Pharmaceuticals 25,349
3,000 Denkyosha Company 13,018
3,600 Enix Corporation 70,297
300 Futaba Industrial Company 3,517
8,000 Hokkaido Coca-Cola Bottling Company 86,787
5,000 Misumi Corporation+ 84,617
7,000 Nihon Electric Wire & Cable Company Ltd. 24,553
2,000 Nissei Industries Ltd. 14,479
5,000 Nitto Electric Works Ltd. 40,139
----------
362,756
----------
NETHERLANDS - 4.3%
1,500 Geveke NV 84,865
5,830 Konin Emballage Ind Van Leer NV 135,378
3,200 Nutreco Holding NV+ 112,090
2,700 Ordina Beheer NV+ 87,536
----------
419,869
----------
PORTUGAL - 0.5%
1,000 Jeronimo Martins, SA 48,072
----------
SINGAPORE - 0.8%
40,000 Venture Manufacturing Ltd. 75,964
----------
SPAIN - 2.7%
1,000 Abengoa S.A. 91,881
2,500 Amper SA 68,471
7,500 Befesa Medio Ambiente S.A.+ 102,706
----------
263,058
----------
SWITZERLAND - 4.6%
100 Bossard Holding AG 61,547
450 Fotolabo SA 147,989
950 Mikron Holding AG, New Registered+ 241,531
----------
451,067
----------
UNITED KINGDOM - 28.1%
40,000 Alexon Group Plc+ 153,946
125,000 Anite Group Plc+ 127,315
120,000 Budgens Plc 149,271
50,540 Crest Packaging Plc@ 42,193
17,500 DCS Group Plc 163,192
7,500 Eidos Plc+ 103,939
27,000 Hogg Robinson PLC 122,397
15,000 Micro Focus Group Plc+ 108,948
56,000 Monsoon PLC+ 144,930
10,000 MSB International Plc 154,447
87,000 Northamber Plc 313,770
50,000 Paragon Group Companies Plc 189,094
100,000 Rebus Group Plc 232,088
22,000 Regent Inns Plc 69,426
46,000 Rolfe & Nolan Plc 205,456
75,000 Rubicon Group Plc 221,026
35,000 Saatchi & Saatchi Plc+ 97,010
30,000 Skillsgroup Plc+ 140,757
23,000 VideoLogic Group Plc+ 27,458
----------
2,766,663
----------
TOTAL COMMON STOCKS (COST $6,212,251) 6,991,617
----------
RIGHTS -- 0.0%# (COST $0)
AUSTRIA - 0.0%#
1,300 Bank Austria AG, Expire 07/13/98+ 67
----------
PRINCIPAL
AMOUNT
- ---------
TIME DEPOSIT -- 14.2% (COST $1,398,000)
$1,398,000 Brown Brothers Harriman & Co. (Cayman), 5.070% due 07/01/98 1,398,000
----------
TOTAL INVESTMENTS (COST $7,610,251*) 85.4% 8,389,684
OTHER ASSETS AND LIABILITIES (NET) 14.6 1,440,669
- -------------------------------------------------------------------------------------------------
NET ASSETS 100.0% $9,830,353
- -------------------------------------------------------------------------------------------------
* Aggregate cost for Federal tax purposes.
+ Non-income producing security.
# Amount represents less than 0.1%.
@ Illiquid Security. These are securities that the Adviser believes cannot be sold or disposed of
in the ordinary course of business within seven days at approximately the value at which the Fund
has valued the investment. The value of the denoted security at June 30, 1998 was $42,193,
representing 0.4% of total net assets.
See Notes to Financial Statements.
</TABLE>
<PAGE>
<TABLE>
PANORAMA TRUST
PICTET INTERNATIONAL SMALL COMPANIES FUND
- -------------------------------------------------------------------------------------------------
PORTFOLIO OF INVESTMENTS (continued) JUNE 30, 1998 (UNAUDITED)
- -------------------------------------------------------------------------------------------------
AT JUNE 30, 1998, SECTOR DIVERSIFICATION OF THE FUND WAS AS FOLLOWS:
<CAPTION>
% OF NET VALUE
INDUSTRY DIVERSIFICATION ASSETS (NOTE 1)
- -------------------------------------------------------------------------------------------------
<S> <C> <C>
COMMON STOCKS:
Business and Public Services 8.8% $ 859,675
Data Processing and Reproduction 7.4 723,951
Electrical and Electronics 5.8 567,433
Machinery and Engineering 5.2 516,019
Wholesale and International Trade 4.0 398,387
Textiles and Apparel 3.5 346,334
Recreation, Other Consumer Goods 3.2 316,536
Building Materials and Components 3.2 312,311
Financial Services 3.1 308,769
Merchandising 3.1 303,217
Electronics Components and Instruments 3.0 293,689
Metals - Non Ferrous 2.9 282,574
Telecommunications 2.2 214,193
Multi-Industry 2.0 198,761
Banking 2.0 193,816
Leisure and Tourism 2.0 191,823
Health and Personal Care 1.7 168,485
Food and Household Products 1.6 160,162
Appliances and Household Durables 1.4 141,968
Forest Products and Paper 1.4 135,378
Transportation - Railroad 1.1 105,133
Construction and Housing 0.9 91,881
Beverages and Tobacco 0.9 86,787
Industrial Components 0.8 74,335
- -------------------------------------------------------------------------------------------------
TOTAL COMMON STOCKS 71.2 6,991,617
RIGHTS 0.0# 67
TIME DEPOSIT 14.2 1,398,000
- -------------------------------------------------------------------------------------------------
TOTAL INVESTMENTS 85.4% 8,389,684
OTHER ASSETS AND LIABILITIES (NET) 14.6 1,440,669
- -------------------------------------------------------------------------------------------------
NET ASSETS 100.0% $9,830,353
- -------------------------------------------------------------------------------------------------
# Amount represents less than 0.1%.
See Notes to Financial Statements.
</TABLE>
<PAGE>
<TABLE>
PANORAMA TRUST
PICTET INTERNATIONAL SMALL COMPANIES FUND
- -------------------------------------------------------------------------------------------------
PORTFOLIO OF INVESTMENTS (continued) JUNE 30, 1998 (UNAUDITED)
- -------------------------------------------------------------------------------------------------
SCHEDULE OF FORWARD FOREIGN CURRENCY EXCHANGE CONTRACTS
<CAPTION>
CONTRACT
VALUE MARKET
CONTRACTS DATE VALUE
- -------------------------------------------------------------------------------------------------
<S> <C> <C>
FORWARD FOREIGN CURRENCY EXCHANGE CONTRACTS TO BUY
8,938,692 Portugese Escudo 07/01/98 $48,422
- -------------------------------------------------------------------------------------------------
TOTAL FORWARD FOREIGN CURRENCY EXCHANGE CONTRACTS TO BUY
(CONTRACT AMOUNT $48,200) $48,422
- -------------------------------------------------------------------------------------------------
See Notes to Financial Statements.
</TABLE>
<PAGE>
<TABLE>
PANORAMA TRUST
PICTET EASTERN EUROPEAN FUND
- -------------------------------------------------------------------------------------------------
PORTFOLIO OF INVESTMENTS JUNE 30, 1998 (UNAUDITED)
- -------------------------------------------------------------------------------------------------
<CAPTION>
VALUE
SHARES (NOTE 1)
- -------------------------------------------------------------------------------------------------
<S> <C>
COMMON STOCKS -- 89.6%
CROATIA - 7.5%
9,270 Pliva D.D., GDR $ 149,942
----------
CZECH REPUBLIC - 8.2%
800 Ceske Energeticke Zavody AS+ 22,129
600 Ceske Radiokomunikace, GDR+ 12,855
9,350 SPT Telekom AS + 129,320
----------
164,304
----------
HUNGARY - 29.6%
3,850 Magyar Tavkozlesi Rt., ADR 113,334
4,520 Mezogazdasagi Gepgyarto Reszvenytarsasag Rt.+ 107,540
7,150 Mol Magyar Olaj-es Gazipari Rt., GDR 192,693
1,890 OTP Bank Rt., GDR 92,610
12,330 Zalakeramia Rt., GDR 85,693
----------
591,870
----------
POLAND - 29.3%
2,260 Bank Przemyslowo-Handlowy SA 162,030
3,825 Bank Rozwoju Eksportu SA 103,660
1,080 Bank Slaski SA 72,475
400 Debica SA, Class A 8,030
5,250 Elektrobudowa SA+ 47,426
1,000 Exbud SA+ 12,045
11,100 Kredyt Bank SA 41,064
9,100 Orbis SA+ 80,900
3,850 Zaklady Metali Lekkich Kety+ 57,965
----------
585,595
----------
RUSSIA - 15.0%
22,000 AO Norilsk Nickel+ 45,650
3,730 AO Tatneft, ADR 28,908
73,200 Gazprom, ADR 80,460
6,210 Lukoil Holdings+ 52,165
19,890 Rostelecom+ 45,051
240,300 Unified Energy Systems 30,999
1,160 Unified Energy Systems, GDR 15,515
----------
298,748
----------
TOTAL COMMON STOCKS (COST $2,358,564) 1,790,459
----------
RIGHTS -- 0.1% (COST $0)
POLAND - 0.1%
3,825 Bank Rozwoju Eksportu SA, Expire 07/10/98+ $ 1,097
----------
TOTAL INVESTMENTS (COST $2,358,564*) 89.7% 1,791,556
OTHER ASSETS AND LIABILITIES (NET) 10.3 207,111
- -------------------------------------------------------------------------------------------------
NET ASSETS 100.0% $1,998,667
- -------------------------------------------------------------------------------------------------
* Aggregate cost for Federal tax purposes.
+ Non-income producing security.
See Notes to Financial Statements.
</TABLE>
<PAGE>
<TABLE>
PANORAMA TRUST
PICTET EASTERN EUROPEAN FUND
- -------------------------------------------------------------------------------------------------
PORTFOLIO OF INVESTMENTS (continued) JUNE 30, 1998 (UNAUDITED)
- -------------------------------------------------------------------------------------------------
<CAPTION>
AT JUNE 30, 1998, SECTOR DIVERSIFICATION OF THE FUND WAS AS FOLLOWS:
<CAPTION>
% OF NET VALUE
INDUSTRY DIVERSIFICATION ASSETS (NOTE 1)
- -------------------------------------------------------------------------------------------------
<S> <C> <C>
COMMON STOCKS:
Banking 23.6% $ 471,841
Telecommunications 14.4 287,704
Energy Sources 13.7 273,764
Health and Personal Care 7.5 149,942
Utilites - Electrical and Gas 7.5 149,104
Industrial Components 5.8 115,570
Metals - Non Ferrous 5.2 103,615
Building Materials and Components 4.3 85,693
Leisure and Tourism 4.0 80,900
Construction and Housing 3.0 59,471
Broadcasting and Publishing 0.6 12,855
- -------------------------------------------------------------------------------------------------
TOTAL COMMON STOCKS 89.6 1,790,459
RIGHTS 0.1 1,097
- -------------------------------------------------------------------------------------------------
TOTAL INVESTMENTS 89.7% 1,791,556
OTHER ASSETS AND LIABILITIES (NET) 10.3 207,111
- -------------------------------------------------------------------------------------------------
NET ASSETS 100.0% $1,998,667
- -------------------------------------------------------------------------------------------------
See Notes to Financial Statements.
</TABLE>
<PAGE>
<TABLE>
PANORAMA TRUST
PICTET GLOBAL EMERGING MARKETS FUND
PICTET INTERNATIONAL SMALL COMPANIES FUND
PICTET EASTERN EUROPEAN FUND
- -----------------------------------------------------------------------------------------------------
STATEMENTS OF ASSETS AND LIABILITIES JUNE 30, 1998 (UNAUDITED)
- -----------------------------------------------------------------------------------------------------
<CAPTION>
PICTET PICTET
GLOBAL INTERNATIONAL PICTET
EMERGING SMALL EASTERN
MARKETS COMPANIES EUROPEAN
FUND FUND FUND
- -----------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
ASSETS:
Investments, at value (Cost $138,252,528,
$7,610,251 and $2,358,564, respectively)
(Note 1) See accompanying schedules $106,143,100 $ 8,389,684 $1,791,556
Cash 314,099 2,598,507 201,600
Foreign currency (Cost $2,319,151, $642,544
and $21,474, respectively) 2,179,733 644,660 21,532
Receivable for investment securities sold 2,683,180 1,532,104 40,966
Net unrealized appreciation of forward
foreign currency contracts -- 222 --
Receivable from investment adviser (Note 2) 152,982 47,937 39,930
Dividends receivable 342,524 53,421 10,986
Interest receivable -- 356 --
Unamortized organization costs (Note 1) 20,182 628 --
Prepaid expenses 2,216 1,794 --
Other assets -- 256 718
- -----------------------------------------------------------------------------------------------------
TOTAL ASSETS 111,838,016 13,269,569 2,107,288
- -----------------------------------------------------------------------------------------------------
LIABILITIES:
Payable for investment securities purchased 2,920,088 3,339,433 77,925
Net unrealized depreciation of forward
foreign currency contracts 354 -- --
Investment advisory fee payable (Note 2) 422,201 55,888 6,588
Custodian fees payable (Note 2) 125,853 14,363 929
Administration fee payable (Note 2) 15,466 3,013 245
Trustees fees and expenses payable (Note 2) 10,921 1,475 104
Transfer agent fees payable (Note 2) 3,031 1,000 1,000
Professional fees payable (Note 2) 27,349 14,490 8,600
Printing fees payable (Note 2) 10,765 3,610 8,397
Other accrued expenses and payables 7,643 5,944 4,833
- -----------------------------------------------------------------------------------------------------
TOTAL LIABILITIES 3,543,671 3,439,216 108,621
- -----------------------------------------------------------------------------------------------------
NET ASSETS $108,294,345 $ 9,830,353 $1,998,667
- -----------------------------------------------------------------------------------------------------
NET ASSETS CONSIST OF:
Undistributed net investment income/
(Accumulated distributions in excess of
net investment income) (Note 1) $ 546,847 $ (25,563) $ 13,799
Accumulated net realized gain/(loss) on
investments sold (Note 1) (37,799,282) 2,004,816 (11,607)
Net unrealized appreciation/(depreciation)
of investments (32,109,428) 779,433 (567,008)
Net unrealized depreciation of foreign
currency related transactions (103,942) (11,040) (527)
Par value 154,798 9,184 2,564
Paid-in capital in excess of par value
(Notes 1 and 4) 177,605,352 7,073,523 2,561,446
- -----------------------------------------------------------------------------------------------------
TOTAL NET ASSETS $108,294,345 $ 9,830,353 $1,998,667
- -----------------------------------------------------------------------------------------------------
SHARES OF BENEFICIAL INTEREST OUTSTANDING
(Note 4) 15,479,825 918,421 256,401
- -----------------------------------------------------------------------------------------------------
NET ASSET VALUE:
Net asset value, offering and redemption
price per share (Note 4) $ 7.00 $ 10.70 $ 7.80
- -----------------------------------------------------------------------------------------------------
See Notes to Financial Statements.
</TABLE>
<PAGE>
<TABLE>
PANORAMA TRUST
PICTET GLOBAL EMERGING MARKETS FUND
PICTET INTERNATIONAL SMALL COMPANIES FUND
PICTET EASTERN EUROPEAN FUND
- -----------------------------------------------------------------------------------------------------
STATEMENTS OF OPERATIONS
- -----------------------------------------------------------------------------------------------------
FOR THE SIX MONTHS ENDED JUNE 30, 1998 (UNAUDITED)
<CAPTION>
PICTET PICTET
GLOBAL INTERNATIONAL PICTET
EMERGING SMALL EASTERN
MARKETS COMPANIES EUROPEAN
FUND FUND FUND*
- -----------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
INVESTMENT INCOME:
Dividends (net of foreign withholding taxes
of $124,217, $38,256, and $962, respectively) $ 1,802,343 $ 237,365 $ 17,045
Interest 91,643 12,493 7,295
- -----------------------------------------------------------------------------------------------------
TOTAL INVESTMENT INCOME 1,893,986 249,858 24,340
- -----------------------------------------------------------------------------------------------------
EXPENSES:
Investment advisory fee (Note 2) 920,527 119,303 6,588
Custodian fees (Note 2) 261,986 28,403 1,085
Administration fee (Note 2) 129,172 45,688 13,246
Professional fees 29,793 16,293 8,600
Transfer agent fees (Note 2) 15,989 5,000 3,000
Trustees' fees and expenses (Note 2) 10,921 1,475 104
Printing fees 2,620 -- 16,655
Amortization of organization costs (Note 1) 4,485 118 --
Other 49,781 18,759 1,193
- -----------------------------------------------------------------------------------------------------
TOTAL EXPENSES BEFORE EXPENSE REDUCTIONS 1,425,274 235,039 50,471
- -----------------------------------------------------------------------------------------------------
Expense reductions (Note 2) (173,356) (91,875) (39,930)
- -----------------------------------------------------------------------------------------------------
NET EXPENSES 1,251,918 143,164 10,541
- -----------------------------------------------------------------------------------------------------
NET INVESTMENT INCOME 642,068 106,694 13,799
- -----------------------------------------------------------------------------------------------------
REALIZED AND UNREALIZED GAIN/(LOSS) ON INVESTMENTS
(Notes 1 and 3):
Net realized gain/(loss) on:
Security transactions (33,856,412) 3,073,438 (10,784)
Forward foreign currency contracts (150,376) (30,049) --
Foreign currency related transactions (344,461) (148,943) (823)
- -----------------------------------------------------------------------------------------------------
Net realized gain/(loss) on investments
during the period (34,351,249) 2,894,446 (11,607)
- -----------------------------------------------------------------------------------------------------
Change in unrealized appreciation/(depreciation) of:
Securities 3,115,625 1,790,244 (567,008)
Forward foreign currency contracts (354) 222 --
Foreign currency related transactions (12,782) (968) (527)
- -----------------------------------------------------------------------------------------------------
Net unrealized appreciation/(depreciation) of
investments during the period 3,102,489 1,789,498 (567,535)
- -----------------------------------------------------------------------------------------------------
NET REALIZED AND UNREALIZED GAIN/(LOSS)
ON INVESTMENTS (31,248,760) 4,683,944 (579,142)
- -----------------------------------------------------------------------------------------------------
NET INCREASE/(DECREASE) IN NET ASSETS
RESULTING FROM OPERATIONS $(30,606,692) $4,790,638 $(565,343)
- -----------------------------------------------------------------------------------------------------
*Pictet Eastern European Fund commenced operations on April 7, 1998.
See Notes to Financial Statements.
</TABLE>
<PAGE>
<TABLE>
PANORAMA TRUST
PICTET GLOBAL EMERGING MARKETS FUND
- ----------------------------------------------------------------------------------------------------------
STATEMENTS OF CHANGES IN NET ASSETS
- ----------------------------------------------------------------------------------------------------------
<CAPTION>
SIX MONTHS ENDED
JUNE 30, 1998 YEAR ENDED
(UNAUDITED) DECEMBER 31, 1997
- ----------------------------------------------------------------------------------------------------------
<S> <C> <C>
INCREASE/(DECREASE) IN NET ASSETS FROM OPERATIONS:
Net investment income $ 642,068 $ 664,177
Net realized loss on investments during the period (34,351,249) (1,764,594)
Change in unrealized/(depreciation) of investments
during the period 3,102,489 (34,065,813)
- ----------------------------------------------------------------------------------------------------------
Net decrease in net assets resulting from operations (30,606,692) (35,166,230)
Distributions to shareholders:
Distributions to shareholders from net investment income -- (125,929)
Distributions to shareholders in excess of net
investment income -- (189,740)
Distributions to shareholders in excess of net realized
gains on investments -- (2,187,788)
Net increase/(decrease) in net assets from Fund share
transactions (Note 4) (52,020,672) 106,544,495
- ----------------------------------------------------------------------------------------------------------
Net increase/(decrease) in net assets (82,627,364) 68,874,808
NET ASSETS:
Beginning of period 190,921,709 122,046,901
- ----------------------------------------------------------------------------------------------------------
End of period (including undistributed net investment
income/ (accumulated distributions in excess of
net investment income) of ($546,847) and ($95,221),
respectively) $108,294,345 $190,921,709
- ----------------------------------------------------------------------------------------------------------
See Notes to Financial Statements.
</TABLE>
<PAGE>
<TABLE>
PANORAMA TRUST
PICTET INTERNATIONAL SMALL COMPANIES FUND
- --------------------------------------------------------------------------------------------------------------
STATEMENTS OF CHANGES IN NET ASSETS
- --------------------------------------------------------------------------------------------------------------
<CAPTION>
SIX MONTHS ENDED
JUNE 30, 1998 YEAR ENDED
(UNAUDITED) DECEMBER 31, 1997
- --------------------------------------------------------------------------------------------------------------
<S> <C> <C>
INCREASE/(DECREASE) IN NET ASSETS FROM OPERATIONS:
Net investment income $ 106,694 $ 211,834
Net realized gain/(loss) on investments during the period 2,894,446 (935,106)
Change in unrealized appreciation/(depreciation) of
investments during the period 1,789,498 (1,246,920)
- --------------------------------------------------------------------------------------------------------------
Net increase/(decrease) in net assets resulting from
operations 4,790,638 (1,970,192)
Distributions to shareholders:
Distributions to shareholders from net investment income -- (211,834)
Distributions in excess of net investment income -- (106,650)
Net increase/(decrease) in net assets from
Fund share transactions (Note 4) (18,733,320) 318,484
- --------------------------------------------------------------------------------------------------------------
Net decrease in net assets (13,942,682) (1,970,192)
NET ASSETS:
Beginning of period 23,773,035 25,743,227
- --------------------------------------------------------------------------------------------------------------
End of period (accumulated distributions in excess of
net investment income of ($25,563) and ($132,257),
respectively) $ 9,830,353 $23,773,035
- --------------------------------------------------------------------------------------------------------------
See Notes to Financial Statements.
</TABLE>
<PAGE>
PANORAMA TRUST
PICTET EASTERN EUROPEAN FUND
STATEMENT OF CHANGES IN NET ASSETS
PERIOD ENDED
JUNE 30, 1998*
(UNAUDITED)
- ------------------------------------------------------------------------------
INCREASE/(DECREASE) IN NET ASSETS FROM OPERATIONS:
Net investment income $ 13,799
Net realized loss on investments during the period (11,607)
Change in unrealized depreciation of investments during
the period (567,535)
- -----------------------------------------------------------------------------
Net decrease in net assets resulting from operations (565,343)
Net increase in net assets from Fund share transactions
(Note 4) 2,564,010
- -----------------------------------------------------------------------------
Net increase in net assets 1,998,667
NET ASSETS:
Beginning of period --
- -----------------------------------------------------------------------------
End of period (including undistributed net investment
income of $13,799) $ 1,998,667
- -----------------------------------------------------------------------------
*Pictet Eastern European Fund commenced operations on April 7, 1998.
See Notes to Financial Statements.
<PAGE>
<TABLE>
PANORAMA TRUST
PICTET GLOBAL EMERGING MARKETS FUND
- -------------------------------------------------------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS
- -------------------------------------------------------------------------------------------------------------------------------
FOR A FUND SHARE OUTSTANDING THROUGHOUT EACH PERIOD.
<CAPTION>
SIX MONTHS
ENDED YEAR YEAR PERIOD
6/30/98 ENDED ENDED ENDED
(UNAUDITED) 12/31/97 12/31/96(a) 12/31/95*(a)
- -------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Net asset value, beginning of period $8.87 $10.13 $9.51 $10.00
- -------------------------------------------------------------------------------------------------------------------------------
Income from investment operations:
Net investment income 0.04 0.04 0.07 0.02
Net realized and unrealized gain/(loss) on
investments (1.91) (1.18) 0.71 (0.49)
- -------------------------------------------------------------------------------------------------------------------------------
Total from investment operations (1.87) (1.14) 0.78 (0.47)
- -------------------------------------------------------------------------------------------------------------------------------
Distributions to shareholders:
Distributions from net investment income -- (0.01) (0.07) (0.02)
Distributions in excess of net investment
income -- (0.01) (0.00)# (0.00)#
Distributions from net realized gains on
investments -- -- (0.08) --
Distributions in excess of net realized
gains on investments -- (0.10) (0.01) --
- -------------------------------------------------------------------------------------------------------------------------------
Total distributions -- (0.12) (0.16) (0.02)
- -------------------------------------------------------------------------------------------------------------------------------
NET ASSET VALUE, END OF PERIOD $7.00 $ 8.87 $10.13 $ 9.51
- -------------------------------------------------------------------------------------------------------------------------------
Total return++ (21.08)% (11.29)% 8.32% (4.72)%
- -------------------------------------------------------------------------------------------------------------------------------
Ratios to average net assets/supplemental data:
Net assets, end of period (in 000's) $108,294 $190,921 $122,047 $9,623
Ratio of operating expenses 1.70%+ 1.70% 1.70% 1.95%+
Ratio of operating expenses without expense
reductions 1.94%+ 1.84% 2.20% 8.39%+
Ratio of net investment income 0.87%+ 0.32% 0.88% 0.68%+
Ratio of net investment income/(loss)
without expense reductions 0.64%+ 0.18% 0.38% (5.77)%+
Net investment income/(loss) per share
without expense reductions $0.03 $ 0.02 $0.03 $(0.13)
Portfolio turnover rate 49% 77% 48% 5%
- ------------
* Pictet Global Emerging Markets Fund commenced operations on October 4, 1995.
+ Annualized.
++ Total return represents aggregate total return for the period.
# Amount represents less than $0.01 per share.
(a) Per share amounts have been restated to reflect the stock dividend of nine additional shares for each share outstanding. On
December 2, 1996, the Board of Trustees declared a stock dividend of nine additional shares for each share outstanding of
the Pictet Global Emerging Markets Fund. The record date of the stock dividend was December 31, 1996, payable on January 1,
1997.
See Notes to Financial Statements.
</TABLE>
<PAGE>
<TABLE>
PANORAMA TRUST
PICTET INTERNATIONAL SMALL COMPANIES FUND
- ----------------------------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS
- ----------------------------------------------------------------------------------------------------
FOR A FUND SHARE OUTSTANDING THROUGHOUT EACH PERIOD.
<CAPTION>
SIX MONTHS
ENDED YEAR PERIOD
6/30/98 ENDED ENDED
(UNAUDITED) 12/31/97 12/31/96*(a)
- ----------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
Net asset value, beginning of period $ 9.24 $10.15 $10.00
- ----------------------------------------------------------------------------------------------------
Income from investment operations:
Net investment income 0.02 0.08 0.09
Net realized and unrealized gain/(loss) on
investments 1.44 (0.86) 0.20
- ----------------------------------------------------------------------------------------------------
Total from investment operations 1.46 (0.78) 0.29
- ----------------------------------------------------------------------------------------------------
Distributions to shareholders:
Distributions from net investment income -- (0.09) (0.09)
Distributions in excess of net investment
income -- (0.04) (0.03)
Distributions from net realized gains on
investments -- -- (0.02)
Distributions from tax return of capital -- -- (0.00)#
- ----------------------------------------------------------------------------------------------------
Total distributions -- (0.13) (0.14)
- ----------------------------------------------------------------------------------------------------
NET ASSET VALUE, END OF PERIOD $10.70 $ 9.24 $10.15
- ----------------------------------------------------------------------------------------------------
Total return++ 15.80% (7.68)% 2.85%
- ----------------------------------------------------------------------------------------------------
Ratios to average net assets/supplemental data:
Net assets, end of period (in 000's) $9,830 $23,773 $25,743
Ratio of operating expenses 1.20%+ 1.20% 1.20%+
Ratio of operating expenses without expense
reductions 1.97%+ 2.20% 2.46%+
Ratio of net investment income 0.89%+ 0.82% 1.04%+
Ratio of net investment income/(loss) without
expense reductions 0.12%+ (0.18)% (0.22)%+
Net investment income/(loss) per share without
expense reductions $ 0.00# $(0.02) $(0.02)
Portfolio turnover rate 60% 90% 53%
- ------------
* Pictet International Small Companies Fund commenced operations on February 7, 1996.
+ Annualized.
++ Total return represents aggregate total return for the period.
# Amount represents less than $0.01 per share.
(a) Per share amounts have been restated to reflect the stock dividend of nine additional shares
for each share outstanding. On December 2, 1996, the Board of Trustees declared a stock
dividend of nine additional shares for each share outstanding of the Pictet International
Small Companies Fund. The record date of the stock dividend was December 31, 1996, payable on
January 1, 1997.
See Notes to Financial Statements.
</TABLE>
<PAGE>
PANORAMA TRUST
PICTET EASTERN EUROPEAN FUND
- --------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS
- --------------------------------------------------------------------------------
FOR A FUND SHARE OUTSTANDING THROUGHOUT THE PERIOD.
PERIOD
ENDED
6/30/98*
(UNAUDITED)
- --------------------------------------------------------------------------------
Net asset value, beginning of period $10.00
- --------------------------------------------------------------------------------
Income from investment operations:
Net investment income 0.05
Net realized and unrealized loss on investments (2.25)
- --------------------------------------------------------------------------------
Total from investment operations (2.20)
- --------------------------------------------------------------------------------
NET ASSET VALUE, END OF PERIOD $ 7.80
- --------------------------------------------------------------------------------
Total return++ (22.00)%
- --------------------------------------------------------------------------------
Ratios to average net assets/supplemental data:
Net assets, end of period (in 000's) $1,999
Ratio of operating expenses 2.00%+
Ratio of operating expenses without expense reductions 9.58%+
Ratio of net investment income 2.62%+
Ratio of net investment loss without expense reductions (4.96)%+
Net investment loss per share without expense reductions $(0.10)
Portfolio turnover rate 26%
- ------------
* Pictet Eastern European Fund commenced operations on April 7, 1998.
+ Annualized.
++ Total return represents aggregate total return for the period.
See Notes to Financial Statements.
<PAGE>
PANORAMA TRUST
PICTET GLOBAL EMERGING MARKETS FUND
PICTET INTERNATIONAL SMALL COMPANIES FUND
PICTET EASTERN EUROPEAN FUND
- --------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS (UNAUDITED)
- --------------------------------------------------------------------------------
1. SIGNIFICANT ACCOUNTING POLICIES
Panorama Trust (the "Trust"), a Massachusetts business trust registered
under the Investment Company Act of 1940, as amended (the "1940 Act"), is a
no-load, diversified, open-end management investment company which offers
shares of three series, Pictet Global Emerging Markets Fund, Pictet
International Small Companies Fund and Pictet Eastern European Fund
(individually, a "Fund" collectively, the "Funds"). The accompanying financial
statements and financial highlights are those of the Funds. The Funds'
financial statements are prepared in accordance with generally accepted
accounting principles which require the use of management estimates. The
following is a summary of the significant accounting policies followed
consistently by the Funds in the preparation of their financial statements.
Securities Valuations: Equity securities listed on a U.S. securities
exchange for which market quotations are available are valued at the last
quoted sale price as of the close of the New York Stock Exchange's regular
trading hours on the day the valuation is made. Generally, securities listed
on a foreign exchange and unlisted foreign securities are valued at the latest
quoted sales price available before the time when assets are valued. Portfolio
securities primarily traded on the London Stock Exchange are generally valued
at the mid-price between the current bid and asked prices. Price information
on listed securities is taken from the exchange where the security is
primarily traded. Generally, unlisted U.S. equity securities and listed
securities not traded on the valuation date for which market quotations are
readily available are valued at the mean between the bid and asked prices. The
value of securities for which no quotations are readily available (including
restricted securities) is determined in good faith at fair value using methods
approved by the Board of Trustees. In the absence of readily ascertainable
market values for such securities, inherent uncertainty of valuation exists.
Methods for valuing these securities may differ from the values that would
have been used had a ready market for the securities existed, and the
differences could be material. One or more pricing services may be used to
provide securities valuations in connection with the determination of the net
asset value of the Funds. Short-term investments that mature in 60 days or
less are valued at amortized cost.
Repurchase Agreements: Each Fund may engage in repurchase agreement
transactions. Under the terms of a typical repurchase agreement, the Fund pays
a counterparty cash for, and takes possession of, a debt obligation and the
seller agrees to repurchase, and the Fund to resell, the obligation at an
agreed-upon price and time, thereby determining the yield during the Fund's
holding period. This arrangement results in a fixed rate of return that is not
subject to market fluctuations during the Fund's holding period. The value of
the collateral held by the Fund, at all times, is at least equal to the total
amount of the repurchase obligations, including interest. In the event of
counterparty default, the Fund generally has the right to use the collateral
to offset losses incurred. There is potential loss to the Fund in the event
the Fund is delayed or prevented from exercising its rights to dispose of the
collateral securities, including the risk of a possible decline in the value
of the underlying securities during the period while the Fund seeks to assert
its rights. The Funds' investment adviser, acting under the supervision of the
Board of Trustees, reviews the value of the collateral and the
creditworthiness of those banks and dealers with which the Funds enter into
repurchase agreements to evaluate potential risks.
Foreign Currency Contracts: Each Fund may enter into forward foreign
currency exchange contracts to hedge against anticipated future changes in
exchange rates which otherwise might either adversely affect the value of the
portfolio securities of the Fund or adversely affect the prices of securities
which the Fund intends to purchase or sell at a later date. Forward foreign
currency exchange contracts are valued at the forward rate and are marked-to-
market daily. The change in market value is recorded by the Fund as an
unrealized gain or loss. When the contract is closed, the Fund records a
realized gain or loss equal to the difference between the value of the
contract at the time it was opened and the value at the time it was closed.
The use of forward foreign currency exchange contracts does not eliminate
fluctuations in the underlying prices of the Funds' investment securities, but
it does establish a rate of exchange that can be achieved in the future.
Although forward foreign currency exchange contracts limit the risk of loss
due to a decline in the value of the hedged currency, they also limit any
potential gain that might result should the value of the currency increase. In
addition, such Fund could be exposed to risks if the counterparties to the
contracts are unable to meet the terms of their contracts.
Each Fund may enter into spot foreign currency contracts for the purchase
or sale of securities denominated in foreign currencies to "lock" in the U.S.
exchange rate of the transaction covering the period between trade date and
settlement date.
Foreign Currency: The books and records of the Funds are maintained in
U.S. dollars. Foreign currencies, investments and other assets and liabilities
are translated into U.S. dollars at the bid prices of such currencies against
U.S. dollars last quoted by a major bank. Unrealized gains and losses on
investments which result from changes in foreign currency exchange rates have
been included in the unrealized appreciation/(depreciation) of investments.
Net realized foreign currency gains and losses resulting from changes in
exchange rates include foreign currency gains and losses between trade date
and settlement date of investment securities transactions, foreign currency
transactions and the difference between the amounts of interest and dividends
recorded on the books of the Funds and the amount actually received. The
portion of foreign currency gains and losses related to fluctuation in
exchange rates between the initial purchase trade date and subsequent sale
trade date is included in realized gains and losses on investment securities
sold.
Securities Transactions and Investment Income: Securities transactions are
recorded on a trade date basis. Realized gains and losses from securities
transactions are recorded on the identified cost basis. Interest income is
recorded on the accrual basis. Dividend income is recorded on the ex-dividend
date, except that certain dividends from foreign securities are recorded as
soon as each Fund is informed of the ex-dividend date.
Dividends and Distributions to Shareholders: Distributions from net
investment income, if any, are declared and paid annually. The Funds' net
realized capital gain (including net short-term capital gain), unless offset
by any available capital loss carryforward, is distributed to shareholders
annually. Additional distributions of net investment income and capital gain
may be made at the discretion of the Board of Trustees in order to avoid the
application of a 4% non-deductible Federal excise tax. Income distributions
and capital gain distributions are determined in accordance with income tax
regulations which may differ from generally accepted accounting principles.
These differences are due primarily to timing differences and differing
characterization of distributions made by a Fund. Dividends and other
distributions are reinvested automatically in additional shares of the Funds
at the net asset value next determined after such dividend or distribution is
declared.
Income Taxes: Each Fund intends to qualify each year as a regulated
investment company by complying with the requirements of the Internal Revenue
Code of 1986, as amended, applicable to regulated investment companies and by
distributing substantially all of its earnings to shareholders. Therefore, no
Federal income tax provision is required.
Organization Costs: Expenses incurred in connection with the organization
of certain of the Funds are being amortized on the straight-line method over a
period of five years from the commencement of operations.
Expenses: General expenses of the Trust are allocated among the Funds
based upon relative net assets. Operating expenses directly attributable to a
Fund are charged to that Fund's operations.
2. INVESTMENT ADVISORY FEE, ADMINISTRATION FEE AND OTHER PARTY TRANSACTIONS
The Trust, on behalf of each Fund, has entered into an investment advisory
agreement (the "Advisory Agreement") with Pictet International Management
Limited ("Pictet International"), a wholly-owned subsidiary of Pictet (Canada)
& Company ("Pictet Canada"). Pictet Canada is a partnership, whose principal
activity is investment accounting, custody and securities brokerage. Pictet
Canada has two general partners, Pictet Advisory Services Overseas and
FINGEST, and six limited partners, each of whom is also a partner of Pictet &
Cie, a Swiss private bank founded in 1805. Under the terms of the Advisory
Agreement, Pictet Global Emerging Markets Fund, Pictet International Small
Companies Fund and Pictet Eastern European Fund pay Pictet International a
fee, computed daily and payable quarterly, at an annual rate of 1.25%, 1.00%
and 1.50%, respectively, of the average daily net assets of each Fund. Pictet
International has voluntarily agreed to waive its fees and reimburse expenses
to the extent necessary to ensure that the total ordinary operating expenses
of Pictet Global Emerging Markets Fund, Pictet International Small Companies
Fund and Pictet Eastern European Fund do not exceed 1.70%, 1.20% and 2.00%,
repectively, of each Fund's average daily net assets.
For the six months ended June 30, 1998, Pictet International waived fees
and reimbursed expenses as follows:
EXPENSES
FEES WAIVED REIMBURSED
- --------------------------------------------------------------------------------
Pictet Global Emerging Markets Fund $173,356 --
Pictet International Small Companies Fund 91,875 --
Pictet Eastern European Fund 6,588 $33,342
First Data Investor Services Group, Inc. a wholly-owned subsidiary of
First Data Corporation, serves as the Trust's administrator, accounting agent
and transfer agent. First Data Investor Services Group, Inc., as accounting
agent, is paid a fee computed daily and payable monthly at an annual rate of
0.04% of the average daily net assets of each Fund, subject to a $50,000
annual minimum from each Fund. For administrative services, First Data
Investor Services Group, Inc., is entitled to receive $220,000 per annum from
the Trust. In addition, for its services as transfer agent, First Data
Investor Services Group, Inc. is paid separate compensation.
No officer, director or employee of Pictet International, First Data
Investor Services Group, Inc., or any affiliate thereof, receives any
compensation from the Trust for serving as Trustee or officer of the Trust.
The Trust pays each Trustee who is not an affiliated person of Pictet
International an annual fee of $5,000, plus an additional $500 for each board
and committee meeting attended. The Trust also reimburses expenses incurred by
each Trustee in attending such meetings.
Brown Brothers Harriman & Co. serves as the Funds' custodian. First Data
Distributors, Inc., a wholly-owned subsidiary of First Data Investor Services
Group, Inc., serves as the Funds' principal underwriter and distributor.
3. PURCHASES AND SALES OF SECURITIES
Cost of purchases and proceeds from sales of investment securities,
excluding short-term securities and U.S. Government securities, for the six
months ended June 30, 1998 were as follows:
PURCHASES SALES
- --------------------------------------------------------------------------------
Pictet Global Emerging Markets Fund $71,610,816 $117,784,815
Pictet International Small Companies Fund 12,626,418 33,671,133
Pictet Eastern European Fund 2,734,610 365,262
At June 30, 1998, aggregate gross unrealized appreciation and unrealized
depreciation for tax purposes were as follows:
TAX BASIS TAX BASIS
UNREALIZED UNREALIZED
APPRECIATION DEPRECIATION
- --------------------------------------------------------------------------------
Pictet Global Emerging Markets Fund $7,915,647 $39,452,724
Pictet International Small Companies Fund 1,216,778 437,345
Pictet Eastern European Fund 19,359 586,367
4. SHARES OF BENEFICIAL INTEREST
Each Fund has one class of shares of beneficial interest, par value $0.01
per share, of which an unlimited number of shares is authorized. Transactions
in shares of beneficial interest were as follows:
<TABLE>
<CAPTION>
SIX MONTHS ENDED YEAR ENDED
JUNE 30, 1998 DECEMBER 31, 1997
SHARES AMOUNT SHARES AMOUNT
- -----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Pictet Global Emerging Markets Fund:
Sold 2,241,014 $ 18,930,065 9,649,457 $108,632,793
Issued as reinvestment of dividends -- -- 284,465 2,503,293
Redeemed (8,292,759) (70,950,737) (453,312) (4,591,591)
- -----------------------------------------------------------------------------------------------------------------------------------
Net increase/(decrease) (6,051,745) $(52,020,672) 9,480,610 $106,544,495
- -----------------------------------------------------------------------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
SIX MONTHS ENDED YEAR ENDED
JUNE 30, 1998 DECEMBER 31, 1997
SHARES AMOUNT SHARES AMOUNT
- -----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C>
Pictet International Small Companies Fund:
Sold 922,708 $ 10,125,000 -- --
Issued as reinvestment of dividends -- -- 34,641 $ 318,484
Redeemed (2,576,438) (28,858,320) -- --
- -----------------------------------------------------------------------------------------------------------------------------------
Net increase/(decrease) (1,653,730) $(18,733,320) 34,641 $ 318,484
- -----------------------------------------------------------------------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
PERIOD ENDED
JUNE 30, 1998*
SHARES AMOUNT
- -----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C>
Pictet Eastern European Fund:
Sold 266,402 $ 2,664,010
Redeemed (10,001) (100,000)
- -----------------------------------------------------------------------------------------------------------------------------------
Net increase 256,401 $ 2,564,010
- -----------------------------------------------------------------------------------------------------------------------------------
</TABLE>
* The Fund commenced operations on April 7, 1998.
At June 30, 1998 Pictet Global Emerging Markets Fund had 4 institutional
shareholders owning 23.10%, 18.40%, 11.66% and 11.18%, respectively, of the
outstanding shares of beneficial interest of the Fund.
At June 30, 1998 Pictet International Small Companies Fund had 1
institutional shareholder owning 99.07% of the outstanding shares of
beneficial interest of the Fund.
At June 30, 1998 Pictet Eastern European Fund had 1 institutional
shareholder owning 14.51% of the outstanding shares of beneficial interest of
the Fund.
5. FOREIGN SECURITIES
Pictet Global Emerging Markets Fund invests primarily in foreign emerging
markets securities, Pictet International Small Companies Fund invests
primarily in foreign securities and Pictet Eastern European Fund invests
primarily in Eastern European equity securities. Investing in securities of
foreign companies and foreign governments involves special risks and
considerations not typically associated with investing in U.S. companies and
the U.S. Government. These risks include re-valuation of currencies, less
reliable information about issuers, varying securities transaction clearance
and settlement practices, and future adverse political and economic
developments. These risks are heightened for investments in emerging markets
countries. Moreover, securities of many foreign companies and foreign
governments and their markets may be less liquid and their prices more
volatile than those of securities of comparable U.S. companies and the U.S.
Government.
6. POST OCTOBER LOSS
Under the current tax law, capital and currency losses realized after
October 31 may be deferred and treated as occurring on the first day of the
following fiscal year. For the fiscal year ended December 31, 1997, the Funds
elected to defer capital losses occurring between November 1, 1997 and
December 31, 1997 as follows:
CAPITAL LOSSES CURRENCY LOSSES
- --------------------------------------------------------------------------------
Pictet Global Emerging Markets Fund $3,255,305 $68,013
Pictet International Small Companies Fund 413,130 44,080
Such losses will be treated as arising on the first day of the year ending
December 31, 1998.
7. CAPITAL LOSS CARRYFORWARDS
At December 31, 1997 the Pictet International Small Companies Fund had
available for Federal income tax purposes unused capital losses of $476,500,
expiring in 2005.
