<PAGE>
PANORAMA TRUST
PICTET GLOBAL EMERGING MARKETS FUND
PICTET INTERNATIONAL SMALL COMPANIES FUND
PICTET EASTERN EUROPEAN FUND
[LOGO] PICTET
1805 ------
SEMI-ANNUAL REPORT
JUNE 30, 1999
<PAGE>
TABLE OF CONTENTS Page
----
PORTFOLIO OF INVESTMENTS
Global Emerging Markets Fund ..................................... 1
International Small Companies Fund ............................... 9
Eastern European Fund ............................................ 14
FINANCIAL STATEMENTS
Statements of Assets and Liabilities ............................. 17
Statements of Operations ......................................... 18
Statements of Changes in Net Assets .............................. 19
Financial Highlights ............................................. 22
Notes to Financial Statements .................................... 25
<PAGE>
PANORAMA TRUST
PICTET GLOBAL EMERGING MARKETS FUND
- -------------------------------------------------------------------------------
PORTFOLIO OF INVESTMENTS JUNE 30, 1999 (UNAUDITED)
- -------------------------------------------------------------------------------
VALUE
SHARES (NOTE 1)
- -------------------------------------------------------------------------------
COMMON STOCKS -- 94.2%
ARGENTINA - 0.9%
63,500 Nobleza Piccardo SA@## $ 209,578
75,000 Quilmes Industrial SA, ADR 928,125
296,440 Siderca SA 388,389
-------------
1,526,092
-------------
BRAZIL - 2.1%
14,900,000 Cia Siderurgica Nacional+ 389,226
51,400 Cia Vale Do Rio Doce 725,784
60,900 Embratel Participacoes SA, ADR 844,988
70,100 Souza Cruz SA 492,937
7,100 Tele Centro Sul Participacoes, ADR 394,050
20,300 Tele Sudeste Celular Participacoes, ADR 588,700
-------------
3,435,685
-------------
CHILE - 0.8%
13,390 Cia Cervecerias Unidas SA, Sponsored ADR 383,289
45,660 Masisa SA, Sponsored ADR 479,430
11,450 Quimica y Minera de Chile SA, Sponsored ADR,
B Share 405,044
-------------
1,267,763
-------------
CHINA - 8.0%
3,018,000 Anhui Conch Cement Company, Ltd., Class H+ 513,464
2,095,000 Beijing Datang Power Generation Company,
Ltd., Class H+ 675,057
2,096,000 China Everbright International, Ltd. 2,093,677
5,282,000 China Shipping Haisheng Company, Ltd.+ 1,218,619
657,000 China Telecom, Ltd. 1,824,859
1,580,000 Cosco Pacific, Ltd. 1,313,510
1,054,000 Guangdong Kelon Electric Holding, Class H 1,229,436
2,326,000 Huaneng Power International, Inc., Class H 974,338
1,620,000 Legend Holdings, Ltd. 1,555,564
4,328,000 Shanghai Petrochemical Company, Ltd. 1,020,834
2,428,000 Yanzhou Coal Mining Company, Ltd. 868,417
-------------
13,287,775
-------------
CZECH REPUBLIC - 0.3%
238,700 Ceske Energeticke Zavody AS+ 490,470
-------------
EGYPT - 1.5%
150,000 Al Ezz Porcelain 399,514
93,999 Arabian International Construction 620,252
44,900 Commercial International Bank 403,230
200 Egyptian Financial and Industrial 2,470
25 Egyptian Starch & Glucose Manufacturing
Company+@ 262
136,585 Ezz Steel+ 573,490
16,883 Orascom Construction Industries+ 227,554
13,260 Oriental Weavers Company 272,162
-------------
2,498,934
-------------
GHANA - 0.2%
47,500 Ashanti Goldfields GDR 329,531
-------------
GREECE - 0.0%#
1,000 Interamerican Insurance Company+ 22,201
-------------
INDIA - 7.5%
188,647 India Access Fund, Ltd.+## 1,768,566
75,000 ITC, Ltd., Sponsored GDR 2,111,250
56,600 Larsen & Toubro, Ltd., GDR+ 873,055
260,000 Reliance Industries Ltd., GDR 2,613,000
90,000 State Bank of India, CDS 1,104,750
93,100 Tata Engineering and Locomotive Company,
Ltd., Sponsored GDR 539,980
281,800 The India Fund, Inc. 2,800,388
52,000 Videsh Sanchar Nigam, Ltd., CDS+ 666,250
-------------
12,477,239
-------------
INDONESIA - 10.8%
6,217,000 Aneka Tambang Tbk 1,391,531
3,873,000 Astra International Tbk+ 1,761,726
6,190,000 Asuransi Lippo Life Tbk 469,278
38,312,000 Bank Internasional Indonesia (F) 1,106,484
365,000 Gudang Garam Tbk 985,631
54,000 Gulf Indonesia Resources, Ltd.+ 621,000
1,400,000 Indofood Sukses Makmur Tbk 1,900,361
53,300 Indosat Tbk 1,039,350
10,905,500 Lippo Bank (Cook Island)+ 590,551
2,444,500 Pabrik Kertas Tjiwi Kimia 935,440
5,425,000 Ramayana Lestari Sentosa@ 3,838,628
489,000 Semen Gresik 1,059,206
178,308 Telekomunikasi Indonesia, ADR, Series B 2,217,706
-------------
17,916,892
-------------
KENYA - 0.2%
118,026 Kenya Commercial Bank, Ltd.@ 74,474
157,062 Kenya Power & Lighting Company, Ltd.@ 243,457
-------------
317,931
-------------
LEBANON - 0.4%
23,400 Banque Liban, GDR, B Shares 556,920
-------------
MALAWI - 0.1%
17,000 Press Corporation, Ltd., GDR+@## 112,710
-------------
MALAYSIA - 5.6%
458,000 AMMB Holdings Berhad 1,169,105
344,000 Berjaya Sports Toto Berhad 796,632
508,000 Malayan Banking Berhad 1,524,000
414,000 Malaysia International Shipping Corporation Berhad 757,184
70,000 Nestle Malaysia Berhad### 248,697
779,000 RHB Capital Berhad+ 1,004,500
410,000 Resorts World Berhad 965,658
247,000 Star Publications (Malaysia) Berhad### 526,528
252,000 Telekom Malaysia Berhad### 847,560
893,000 United Engineers (Malaysia) Berhad 1,421,750
-------------
9,261,614
-------------
MEXICO - 4.8%
262,000 Consorcio ARA, SA de CV 1,052,443
425,000 Controladora Comercial Mexicana SA de CV 443,243
192,000 Corporation GEO, SA de CV 813,990
241,000 Grupo Financiero Banamex Accival
SA de CV, O Shares 996,074
2,756,000 Grupo Financiero Bancomer SA de CV, O Shares 613,037
16,800 Grupo Iusacell SA, Series L 218,400
320,000 Grupo Mexico SA, Class B 1,360,042
260,000 Grupo Sanborns SA, Series B+ 490,514
19,600 Grupo Televisa SA, Sponsored GDR 878,325
93,500 Pepsi-Gemex SA, Sponsored GDR 853,188
52,600 TV Azteca, SA de CV, CPO Shares+ 272,863
-------------
7,992,119
-------------
PAKISTAN - 0.6%
114,100 Engro Chemicals Pakistan, Ltd. 160,315
1,480,000 Hub Power Company, Ltd. 404,419
250,086 Pakistan State Oil Company, Ltd. 448,313
-------------
1,013,047
-------------
PERU - 0.4%
47,100 Southern Peru Copper Corporation 680,006
-------------
PHILIPPINES - 4.1%
1,059,000 Ayala Land, Inc. 333,982
2,770,000 Benpres Holdings Corporation+ 655,191
8,182,000 Filinvest Land, Inc.+ 924,641
8,374,500 International Container Terminal Services, Inc.+ 1,089,455
128,000 Metropolitan Bank & Trust Company 1,278,318
33,400 Philippine Long Distance Telephone 1,006,175
355,190 San Miguel Corporation, Class B 774,790
3,392,400 SM Prime Holdings, Inc. 766,745
-------------
6,829,297
-------------
POLAND - 1.0%
28,000 Bank Polska Kasa Opieki SA+ 324,462
49,000 KGHM Polska Miedz SA, GDR 661,500
87,910 Telekomunikacja Polska, GDR, Series A 619,765
-------------
1,605,727
-------------
RUSSIA - 3.6%
38,000 Gazprom, ADR 428,450
330,000 Mosenergo, Sponsored ADR 1,485,000
133,000 Rostelecom, Sponsored ADR+ 1,305,063
3,000,000 Unified Energy Systems 262,500
271,100 Unified Energy Systems GDR 2,541,562
-------------
6,022,575
-------------
SLOVAKIA - 0.0%#
5,326 Nafta Gbely AS@ 48,465
-------------
SOUTH AFRICA - 7.0%
41,000 Anglo American Platinum Corporation, Ltd. 1,916,142
200,000 Barlow, Ltd. 1,153,464
50,000 De Beers Centenary, Linked Units 1,198,210
4,000,000 Iscor, Ltd. 1,252,900
700,000 Metro Cash and Carry, Ltd. 580,046
120,000 Rembrandt Group, Ltd. 1,000,331
260,000 Sappi, Ltd. 1,904,541
81,000 South African Breweries, Ltd. 703,414
250,000 Stanbic (IPO) 787,206
113,000 Tiger Oats, Ltd. 1,029,997
-------------
11,526,251
-------------
SOUTH KOREA - 14.1%
258,000 Daewoo Corporation 1,172,423
34,600 Hansol Paper Company 550,013
108,950 Hyundai Engineering & Construction Company 828,302
36,200 Hyundai Motor Company, Ltd. 858,479
72,200 Kookmin Bank 1,465,832
39,900 Korea Electric Power Corporation, ADR+ 1,658,048
65,000 Korea Telecom Corporation 4,312,743
63,555 L.G. Chemical, Ltd. 1,729,575
77,300 LG Electronics 2,137,019
26,020 Oriental Chemical Industries Company, Ltd. 633,921
60,601 Samsung Corporation+ 1,424,058
23,492 Samsung Display Devices Company 1,278,614
7,545 Samsung Electronics Company 827,832
16,048 Samsung Securities Company, Ltd.+ 859,559
38,800 Shinsegae Department Store Company 2,762,091
27,000 SK Corporation 776,760
-------------
23,275,269
-------------
SRI LANKA - 0.2%
156,427 John Keells Holdings, Ltd.@ 341,057
-------------
TAIWAN - 11.4%
268,180 Accton Technology Corporation, GDR+ 1,226,924
169,400 Asustek Computer, Inc. 1,909,028
504,400 Cathay Life Insurance Corporation 1,811,467
189,378 Compal Electronics, Inc. 744,613
293,000 D-Link Corporation 703,019
495,000 Far Eastern Textile, Ltd. 735,604
1,070,000 Formosa Chemicals & Fiber Corporation 1,305,201
168,000 Hon Hai Precision Industry Company, Ltd. 1,518,762
454,000 Mosel Vitelic, Inc.+ 319,065
77,720 Quanta Computer, Inc. 931,196
397,000 Silicon Integrated Systems+ 1,917,399
386,220 Siliconware Precision Industries Company+ 735,372
295,300 Synnex Technology International Corporation 1,535,926
989,000 Taishin International Bank 734,861
396,750 United Microelectronics Corporation, Ltd. 853,688
965,000 United World Chinese Commercial Bank 1,493,808
833,000 Yuen Foong Yu Paper Manufacturing Company, Ltd.+ 358,474
-------------
18,834,407
-------------
THAILAND - 6.5%
62,000 Advanced Info Service Public Company, Ltd. 840,678
589,400 Bangkok Bank Public Company, Ltd. (F) 2,205,755
948,000 Bank of Asia Public Company, Ltd. (F) 687,702
962,000 Bank of Ayudha 658,725
87,990 Delta Electronics Thai (F) 739,713
26,500 Electricity Generation Power Company (F) 50,664
2,152,000 Industrial Finance Corporation of Thailand (The) 1,371,444
945,000 Kiatnakin Finance and Securities Public
Company, Ltd. (F) 743,186
77,800 PTT Exploration and Production Public
Company, Ltd. 594,972
62,500 Siam Cement Company, Ltd. (F) 1,898,305
972,000 TelecomAsia Corporation Public Company, Ltd.+ 981,885
-------------
10,773,029
-------------
TURKEY - 1.7%
12,381,750 Aksa Akrilik Kimya Sanayii AS 219,997
22,500,000 Alarko Holding AS 410,438
5,600,000 Alcatel Teletas Telekomunikasyon
Endustri ve Ticaret AS 364,834
13,000,000 Arcelik AS+ 461,965
32,000,000 Dogan Sirketler Grubu Holding AS 424,534
22,000,000 Eregli Demir Ve Celik Fabrikalari T.A.S. 307,503
18,270,000 Ford Otomotiv Sanayi AS 294,321
43,973,000 Turk Sise ve Cam Fabrikalari AS 406,280
-------------
2,889,872
-------------
VENEZUELA - 0.4%
157,555 Ceramica Carabobo, Class A@ 19,475
16,132 Ceramica Carabobo, Class A, Sponsored ADR@## 12,099
1,233,840 La Electricidad de Caracus 482,962
11,161,172 Sudamtex de Venezuela, Class A@ 55,185
1,600,006 Venepal SA, Class A@ 23,733
-------------
593,454
-------------
TOTAL COMMON STOCKS (COST $123,341,837) 155,926,332
-------------
PREFERRED STOCKS -- 3.4%
BRAZIL - 3.1%
115,500 Banco Bradesco SA, Sponsored ADR 579,798
939,000 Banco Itau SA 482,626
21,000 Cia Vale Do Rio Doc, Class A 412,765
85,355,000 Lojas Americanas SA 337,467
30,000,000 Telerj Celular SA, Class B+ 979,384
31,343,000 Telesp Celular SA+ 1,559,627
233,000 Usinas Siderurgicas de Minas Gerais SA, Class A 784,344
59,900 Vale do Rio Doce, Class B## 338
-------------
5,136,349
-------------
PHILIPPINES - 0.1%
1,292,660 Cosmos Bottling Company 190,247
-------------
RUSSIA - 0.2%
650,000 Rostelecom+@ 334,750
-------------
TOTAL PREFERRED STOCKS (COST $4,843,707) 5,661,346
-------------
RIGHTS -- 0.0%# (COST $0)
SOUTH KOREA - 0.0%#
3,851 Samsung Securities Company, Ltd., Expire 07/20/99+ 79,856
-------------
TOTAL INVESTMENTS (COST $128,185,544*) 97.6% 161,667,534
OTHER ASSETS AND LIABILITIES (NET) 2.4 4,007,349
- -------------------------------------------------------------------------------
NET ASSETS 100.0% $ 165,674,883
- -------------------------------------------------------------------------------
* Aggregate cost for Federal tax purposes.
+ Non-income producing security.
# Amount represents less than 0.1%.
## The valuations of these securities have been determined by procedures
established by the Board of Trustees. The cost of the denoted securities at
June 30, 1999 was $2,427,940, with a value of $2,103,291 representing 1.27%
of total net assets.
### The valuations of these securities have been adjusted for volatility of
Malaysian currency.
@ 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, 1999 was $5,256,668,
representing 3.17% of total net assets.
Abbreviations:
ADR American Depositary Receipt
CDS Compulsory Dematerialized Shares
GDR Global Depositary Receipt
(F) Foreign Shares
<PAGE>
AT JUNE 30, 1999, SECTOR DIVERSIFICATION OF THE FUND WAS AS FOLLOWS:
% OF NET VALUE
INDUSTRY DIVERSIFICATION ASSETS (NOTE 1)
- -------------------------------------------------------------------------------
COMMON STOCKS:
Telecommunications 10.3% $ 17,033,656
Banking 10.0 16,507,240
Multi-Industry 6.3 10,391,848
Financial Services 5.5 9,110,421
Electrical and Electronics 5.3 8,736,365
Beverage and Tobacco 5.1 8,442,533
Merchandising 4.3 7,091,233
Energy Sources 4.0 6,699,707
Chemicals 3.9 6,593,797
Data Processing and Reproduction 3.8 6,325,731
Construction and Housing 3.6 5,896,037
Utilities - Electric and Gas 3.5 5,721,010
Electronic Components and Instruments 3.3 5,529,686
Transportation 2.6 4,378,768
Broadcasting and Publishing 2.5 4,077,108
Forest Products and Paper 2.3 3,772,201
Automobiles 2.1 3,454,506
Metals - Non Ferrous 2.0 3,306,527
Food and Household 1.9 3,179,317
Metals - Steel 1.8 3,063,464
Building Materials and Components 1.5 2,451,614
Textiles and Apparel 1.4 2,312,967
Insurance 1.4 2,302,946
Real Estate 1.2 2,025,368
Appliances and Household Durables 1.0 1,691,401
Miscellaneous Materials and Commodities 1.0 1,636,402
Machinery and Engineering 0.9 1,421,750
Business and Public Services 0.8 1,371,444
Wholesale & International Trade 0.4 580,046
Recreation, Other Consumer Goods 0.3 443,243
Miscellaneous 0.2 329,531
Energy Equipment and Services 0.0# 48,465
- -------------------------------------------------------------------------------
TOTAL COMMON STOCKS 94.2 155,926,332
PREFERRED STOCKS 3.4 5,661,346
RIGHTS 0.0# 79,856
- -------------------------------------------------------------------------------
TOTAL INVESTMENTS 97.6% 161,667,534
OTHER ASSETS AND LIABILITIES (NET) 2.4 4,007,349
- -------------------------------------------------------------------------------
NET ASSETS 100.0% $ 165,674,883
- --------------------------------------------------------------------------------
# Amount represents less than 0.1%.
See Notes to Financial Statements.
<PAGE>
PANORAMA TRUST
PICTET INTERNATIONAL SMALL COMPANIES FUND
- --------------------------------------------------------------------------------
PORTFOLIO OF INVESTMENTS JUNE 30, 1999 (UNAUDITED)
- --------------------------------------------------------------------------------
VALUE
SHARES (NOTE 1)
- -------------------------------------------------------------------------------
COMMON STOCKS -- 96.8%
AUSTRALIA - 3.8%
25,000 CI Technologies Group, Ltd.+ $ 93,374
10,000 Orica, Ltd. 54,543
40,000 Smorgon Steel Group, Ltd.+ 60,552
-------------
208,469
-------------
BELGIUM - 3.9%
1,000 Ion Beam Applications+ 62,594
500 Ontex 46,366
500 Real Software 58,421
444 Telinfo NV 50,139
-------------
217,520
-------------
DENMARK - 2.3%
9,000 Dansk Lanbrugs Grovvarelska 59,299
750 Vestas Wind Systems A/S+ 65,990
-------------
125,289
-------------
FINLAND - 1.1%
1,500 JOT Automation Group Oyj 60,739
-------------
FRANCE - 10.0%
1,900 A Novo+ 75,370
1,300 Cegedim SA 60,275
350 Cegid 52,290
800 Infogrames Entertainment SA+ 51,518
1,500 Marionnaud Parfumeries SA 80,058
2,500 Pierre & Vacances+ 62,336
400 Publicis SA 84,489
800 Transiciel SA 84,901
-------------
551,237
-------------
GERMANY - 12.4%
900 Aixtron AG 74,093
1,500 Bilfinger & Berger Bau AG 37,015
75 ce Consumer Electronic AG 37,865
600 Deutsche Pfandbrief-und Hypothekenbank AG 54,403
50 EM.TV & Merchandising AG 70,321
2,000 I-D Media AG+ 57,906
250 Intershop Communication AG 60,147
800 Kinowelt Medien AG 58,112
200 Medion AG+ 56,669
900 Qiagen NV 60,275
996 SER Systems AG 57,161
300 Teles AS 61,821
-------------
685,788
-------------
GREECE - 0.0%#
40 Interamerican Insurance Company+ 888
-------------
HONG KONG - 3.7%
500,000 Angang New Steel Company, Ltd., H Shares 74,756
30,000 New World Infrastructure, Ltd. 56,453
20,000 SmarTone Telecommunications Holdings, Ltd. 71,147
-------------
202,356
-------------
ITALY - 2.8%
3,500 Gruppo Editoriale L' Espresso SpA 56,618
6,000 Industria Macchine Automatiche 39,998
43,000 Seat-Pagine Gialle SpA 58,704
-------------
155,320
-------------
JAPAN - 18.0%
2,000 Able, Inc. 102,522
18,000 Cabin Company, Ltd. 30,806
4,000 Fujitsu Devices, Inc. 62,108
3,000 Homac Corporation 75,651
8,000 Laox 69,450
2,000 Mycal Card, Inc. 90,947
2,000 Nippon Konpo Unyu Soko Company, Ltd. 14,634
10,000 Nippon Mining & Metals Co., Ltd. 61,182
15,000 Nippon Soda Company, Ltd. 61,265
2,000 People Company, Ltd 92,600
3,000 Ralse Company, Ltd. 85,573
2,000 Roland Corporation 65,812
4,000 Seikagaku Corporation 47,954
20,000 Tadano, Ltd. 56,387
200 Taiyo Ink Manufacturing Company, Ltd. 18,686
2,500 Woodland Corporation 57,875
-------------
993,452
-------------
NETHERLANDS - 5.3%
2,200 Beter Bed Holding NV 63,469
1,800 Endemol Entertainment Holding NV 52,950
700 IHC Caland NV 27,407
1,000 Kempen & Company NV 49,972
1,200 Nutreco Holding NV+ 42,533
2,000 Ordina Beheer NV+ 57,700
-------------
294,031
-------------
NORWAY - 1.5%
11,000 Christiania Bank Og Kreditkasse 39,501
1,300 NetCom ASA+ 45,198
-------------
84,699
-------------
SINGAPORE - 1.0%
40,000 Wing Tai Holdings, Ltd. 52,879
-------------
SPAIN - 3.5%
5,000 Funespana SA 97,883
2,000 Marco Iberica Distribucion de Ediciones, SA+ 42,760
4,350 NH Hoteles SA 55,667
-------------
196,310
-------------
SWEDEN - 2.9%
4,800 Assa Abloy AB, B Shares 52,025
2,933 IBS AB, B Shares 66,170
4,200 Scandic Hotels AB 44,780
-------------
162,975
-------------
SWITZERLAND - 5.0%
10 Disetronic Holding AG 31,822
15 Kudelski SA, Bearer Shares 53,520
500 Logitech International SA, Registered Shares+ 72,324
250 Mikron Holdings AG, Registered Shares+ 56,573
200 SEZ Holding AG, Registered Shares 65,445
-------------
279,684
-------------
UNITED KINGDOM - 19.6%
5,000 Baltimore Technologies Plc+ 56,745
25,000 Bell Group Plc+ 49,849
5,000 Bespak Plc 64,035
5,500 DCS Group Plc 50,803
2,200 Eidos Plc+ 72,303
10,000 Fibernet Group Plc+ 68,015
7,000 Filtronic Plc 82,367
10,000 First Technology Plc 65,966
7,000 Henlys Group Plc 65,541
12,500 Holidaybreak Plc 57,730
10,000 Informa Group Plc 58,242
9,700 Lynx Group Plc 25,686
8,000 NXT Plc+ 59,078
20,000 Pace Micro Technology Plc 63,838
17,000 Paragon Group Companies Plc 68,598
4,000 PowderJect Pharmaceuticals Plc+ 52,647
15,000 Saatchi & Saatchi Plc+ 50,480
15,000 Skillsgroup Plc+ 69,867
-------------
1,081,790
-------------
TOTAL COMMON STOCKS (COST $4,516,354) 5,353,426
-------------
PREFERRED STOCK -- 1.2% (COST $65,420)
GERMANY - 1.2%
1,200 Sixt AG 64,294
-------------
TOTAL INVESTMENTS (COST $4,581,774*) 98.0% 5,417,720
OTHER ASSETS AND LIABILITIES (NET) 2.0 110,504
- -------------------------------------------------------------------------------
NET ASSETS 100.0% $ 5,528,224
- -------------------------------------------------------------------------------
* Aggregate cost for Federal tax purposes.
+ Non-income producing security.
# Amount represents less than 0.1%.
<PAGE>
AT JUNE 30, 1999, SECTOR DIVERSIFICATION OF THE FUND WAS AS FOLLOWS:
% OF NET VALUE
INDUSTRY DIVERSIFICATION ASSETS (NOTE 1)
- -------------------------------------------------------------------------------
COMMON STOCKS:
Broadcasting and Publishing 12.0% $ 664,638
Data Processing and Reproduction 10.0 550,795
Health and Personal Care 7.7 424,992
Merchandising 6.9 384,298
Electrical and Electronics 6.9 380,626
Telecommunications 6.4 354,020
Machinery and Engineering 5.8 319,009
Leisure and Tourism 5.7 313,113
Business and Public Services 5.5 304,946
Real Estate 3.8 211,854
Electrical Components and Instrumentation 3.3 184,777
Financial Services 2.9 159,545
Banking 2.6 143,876
Metals -- Non Ferrous 2.5 135,938
Chemicals 2.4 134,494
Recreation, Other Consumer Goods 2.2 123,821
Industrial Components 2.0 112,764
Utilities - Electric and Gas 1.8 97,883
Automobiles 1.2 65,541
Appliances and Household Durables 1.1 63,469
Metals -- Steel 1.1 60,552
Multi-Industry 1.0 54,632
Food and Household Products 0.8 42,533
Construction and Housing 0.7 37,015
Energy Sources 0.5 27,407
Insurance 0.0# 888
- -------------------------------------------------------------------------------
TOTAL COMMON STOCKS 96.8 5,353,426
PREFERRED STOCK 1.2 64,294
- -------------------------------------------------------------------------------
TOTAL INVESTMENTS 98.0% 5,417,720
OTHER ASSETS AND LIABILITIES (NET) 2.0 110,504
- -------------------------------------------------------------------------------
NET ASSETS 100.0% $ 5,528,224
- -------------------------------------------------------------------------------
# Amount represents less than 0.1%.
See Notes to Financial Statements.
<PAGE>
PANORAMA TRUST
PICTET EASTERN EUROPEAN FUND
- --------------------------------------------------------------------------------
PORTFOLIO OF INVESTMENTS JUNE 30, 1999 (UNAUDITED)
- --------------------------------------------------------------------------------
VALUE
SHARES (NOTE 1)
- -------------------------------------------------------------------------------
COMMON STOCKS -- 94.8%
CROATIA - 3.9%
4,600 Pliva d.d., GDR, Registered Shares $ 69,690
-------------
CZECH REPUBLIC - 10.2%
11,800 Ceske Energeticke Zavody AS+ 24,246
1,370 Ceske Radiokomunikace, GDR+ 47,265
6,700 Inzenyrske Prumyslove Stavby AS 28,122
5,000 SPT Telecom AS+ 81,043
-------------
180,676
-------------
ESTONIA - 1.9%
1,700 Estonian Telecom Ltd., GDR 33,448
-------------
HUNGARY - 24.1%
330 BorsodChem RT 8,110
1,000 Gedeon Richter RT, GDR 43,750
800 Gedeon Richter, Sponsored GDR 35,000
2,860 MATAV RT, Sponsored ADR, Series B+ 78,650
4,960 Mol Magyar Olaj-es Gazipari RT, GDR 118,792
3,950 North American Bus Industries RT 61,591
770 OTP Bank RT, GDR 31,917
1,600 Pannonplast RT 30,995
1,500 Tisza Vegyi Kombinat RT 15,825
-------------
424,630
-------------
POLAND - 36.1%
1,800 Agora SA, GDR+ 20,970
1,230 Bank Handlowy w Warszawie, GDR+ 19,619
3,700 Bank Polska Kasa Opieke SA, GDR+ 42,875
300 Bank Przemyslowo-Handlowy SA 15,434
2,400 Bank Rozwoju Eksportu SA 75,487
8,300 Elektrim SA 117,318
1,500 Exbud SA+ 11,690
3,000 KGHM Polska Miedz SA, GDR 40,500
1,600 Kredyt Bank SA 7,457
6,500 Orbis SA+ 55,953
2,000 Orbis SA, GDR 16,500
2,850 Prokom Software SA 46,740
1,000 Przedsiebiorstwo Farmaceutyczne JELFA SA 8,786
650 Softbank SA, GDR 23,806
13,050 Telekomunikacja Polska, GDR, Series A 92,003
3,850 Zaklady Metali Lekkich Kety+ 40,495
-------------
635,633
-------------
RUSSIA - 18.6%
4,800 AO Tatneft, ADR 18,000
950 Gazprom, ADR 10,711
1,750 LUKOil Holdings, Sponsored ADR+ 69,344
14,000 Mosenergo, Sponsored ADR 62,720
6,500 Norilsk Nickel+ 21,320
19,890 Rostelecom+ 31,426
1,100 Rostelecom, Sponsored ADR+ 10,794
6,600 Surgutneftegaz, Sponsored ADR 51,975
2,200 Vimpel Communications, Sponsored ADR 51,012
-------------
327,302
-------------
TOTAL COMMON STOCKS (COST $1,647,686) 1,671,379
-------------
TOTAL INVESTMENTS (COST $1,647,686*) 94.8% 1,671,379
OTHER ASSETS AND LIABILITIES (NET) 5.2 90,769
- --------------------------------------------------------------------------------
NET ASSETS 100.0% $ 1,762,148
- --------------------------------------------------------------------------------
* Aggregate cost for Federal tax purposes.
+ Non-income producing security.
Abbreviations:
ADR American Depositary Receipt
GDR Global Depositary Receipt
AT JUNE 30, 1999, SECTOR DIVERSIFICATION OF THE FUND WAS AS FOLLOWS:
% OF NET VALUE
INDUSTRY DIVERSIFICATION ASSETS (NOTE 1)
- -------------------------------------------------------------------------------
COMMON STOCKS:
Telecommunications 30.8% $ 542,959
Energy Sources 18.8 331,542
Banking 10.9 192,789
Health and Personal Care 8.9 157,226
Metals - Non Ferrous 5.8 102,315
Leisure and Tourism 4.1 72,453
Data Processing and Reproduction 4.0 70,546
Automobiles 3.5 61,591
Construction and Housing 2.3 39,812
Building Materials and Components 1.8 30,995
Utilities - Electrical and Gas 1.4 24,246
Chemicals 1.3 23,935
Broadcasting and Publishing 1.2 20,970
- -------------------------------------------------------------------------------
TOTAL COMMON STOCKS 94.8 1,671,379
- -------------------------------------------------------------------------------
TOTAL INVESTMENTS 94.8% 1,671,379
OTHER ASSETS AND LIABILITIES (NET) 5.2 90,769
- -------------------------------------------------------------------------------
NET ASSETS 100.0% $ 1,762,148
- -------------------------------------------------------------------------------
See Notes to Financial Statements.
<PAGE>
PANORAMA TRUST
PICTET GLOBAL EMERGING MARKETS FUND
PICTET INTERNATIONAL SMALL COMPANIES FUND
PICTET EASTERN EUROPEAN FUND
<TABLE>
- -----------------------------------------------------------------------------------------------------------
STATEMENTS OF ASSETS AND LIABILITIES JUNE 30, 1999 (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 $128,185,544,
$4,581,774 and $1,647,686, respectively) (Note 1)
See accompanying Portfolios of Investments $161,667,534 $5,417,720 $1,671,379
Cash 2,569,229 -- 49,649
Foreign currency (Cost $3,072,630) 4,665,768 -- --
Receivable for investment securities sold 691,770 164,566 15,600
Receivable from investment adviser (Note 2) -- 30,995 34,354
Dividends receivable 934,115 23,393 4,310
Unamortized organization costs (Note 1) 11,249 405 7,299
Other assets -- 25 2,793
- -----------------------------------------------------------------------------------------------------------
TOTAL ASSETS 170,539,665 5,637,104 1,785,384
- -----------------------------------------------------------------------------------------------------------
LIABILITIES:
Due to custodian -- 47,971 --
Payable for investment securities purchased 4,065,930 29,552 --
Investment advisory fee payable (Note 2) 593,918 -- --
Administration fee payable (Note 2) 17,872 -- 23
Transfer agent fees payable (Note 2) 5,940 93 51
Custodian fees payable (Note 2) 34,031 8,676 6,998
Professional fees payable 21,685 13,672 10,368
Printing fees payable 16,882 3,275 2,902
Trustees' fees and expenses (Note 2) 5,410 46 41
Other accrued expenses and payables 103,114 5,595 2,853
- -----------------------------------------------------------------------------------------------------------
TOTAL LIABILITIES 4,864,782 108,880 23,236
- -----------------------------------------------------------------------------------------------------------
NET ASSETS $165,674,883 $5,528,224 $1,762,148
- -----------------------------------------------------------------------------------------------------------
NET ASSETS CONSIST OF:
Undistributed/(distributions in excess of)
net investment
income (Note 1) $ 688,573 $ 3,988 $ (6,662)
Accumulated net realized loss on investments
sold (Note 1) (56,569,545) (96,331) (642,951)
Net unrealized appreciation of investments
and foreign currency related transactions
(Note 3) 33,395,720 847,257 24,092
Par value 170,188 7,208 2,205
Paid-in capital in excess of par value
(Notes 1 and 4) 187,989,947 4,766,102 2,385,464
- -----------------------------------------------------------------------------------------------------------
TOTAL NET ASSETS $165,674,883 $5,528,224 $1,762,148
- -----------------------------------------------------------------------------------------------------------
SHARES OF BENEFICIAL INTEREST OUTSTANDING
(Note 4) 17,018,828 720,757 220,499
- -----------------------------------------------------------------------------------------------------------
NET ASSET VALUE:
Net asset value, offering and redemption
price per share (Note 4) $ 9.73 $ 7.67 $ 7.99
- -----------------------------------------------------------------------------------------------------------
See Notes to Financial Statements.
</TABLE>
<PAGE>
PANORAMA TRUST
PICTET GLOBAL EMERGING MARKETS FUND
PICTET INTERNATIONAL SMALL COMPANIES FUND
PICTET EASTERN EUROPEAN FUND
<TABLE>
- ---------------------------------------------------------------------------------------------------
STATEMENTS OF OPERATIONS
- ---------------------------------------------------------------------------------------------------
FOR THE SIX MONTHS ENDED JUNE 30, 1999 (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 $100,783, $6,631, and $0, respectively) $ 1,799,111 $ 51,920 $ 7,685
Interest 50,852 371 3,546
- -----------------------------------------------------------------------------------------------------
TOTAL INVESTMENT INCOME 1,849,963 52,291 11,231
- -----------------------------------------------------------------------------------------------------
EXPENSES:
Investment advisory fee (Note 2) 720,396 29,812 11,482
Administration fee (Note 2) 103,802 4,017 1,277
Accounting fee (Note 2) 27,488 25,000 25,000
Transfer agent fees (Note 2) 17,180 6,000 6,000
Custodian fees (Note 2) 148,767 23,803 20,827
Professional fees 31,304 14,214 10,518
Printing fees 16,882 3,275 2,901
Registration and filing fees (Note 2) 6,612 6,612 6,612
Amortization of organization costs (Note 1) 4,447 125 959
Trustees' fees and expenses (Note 2) 14,627 566 180
Other 12,893 9,419 6,199
- -----------------------------------------------------------------------------------------------------
TOTAL EXPENSES BEFORE EXPENSE REDUCTIONS 1,104,398 122,843 91,955
- -----------------------------------------------------------------------------------------------------
Fees waived and/or expenses reimbursed (Note 2) (126,478) (90,078) (76,287)
- -----------------------------------------------------------------------------------------------------
NET EXPENSES 977,920 32,765 15,668
- -----------------------------------------------------------------------------------------------------
NET INVESTMENT INCOME/(LOSS) 872,043 19,526 (4,437)
- -----------------------------------------------------------------------------------------------------
REALIZED AND UNREALIZED GAIN/(LOSS) ON INVESTMENTS
(Notes 1 and 3):
Net realized gain/(loss) on:
Security transactions 7,604,736 329,917 (106,696)
Foreign currency related transactions (360,979) (37,054) (1,973)
- -----------------------------------------------------------------------------------------------------
Net realized gain/(loss) on investments
during the period 7,243,757 292,863 (108,669)
- -----------------------------------------------------------------------------------------------------
Change in unrealized appreciation/
(depreciation) of:
Securities 37,767,808 543,363 402,340
Foreign currency related transactions (94,186) 11,311 399
- -----------------------------------------------------------------------------------------------------
Net unrealized appreciation of investments
during the period 37,673,622 554,674 402,739
- -----------------------------------------------------------------------------------------------------
NET REALIZED AND UNREALIZED GAIN ON
INVESTMENTS 44,917,379 847,537 294,070
- -----------------------------------------------------------------------------------------------------
NET INCREASE IN NET ASSETS RESULTING FROM
OPERATIONS $45,789,422 $867,063 $289,633
- -----------------------------------------------------------------------------------------------------
</TABLE>
See Notes to Financial Statements.
<PAGE>
PANORAMA TRUST
PICTET GLOBAL EMERGING MARKETS FUND
- --------------------------------------------------------------------------------
STATEMENTS OF CHANGES IN NET ASSETS
- --------------------------------------------------------------------------------
SIX MONTHS ENDED
JUNE 30, 1999 YEAR ENDED
INCREASE/(DECREASE) IN NET ASSETS: (UNAUDITED) DECEMBER 31, 1998
- --------------------------------------------------------------------------------
FROM OPERATIONS:
Net investment income $ 872,043 $ 645,951
Net realized gain/(loss) on investments
during the period 7,243,757 (61,170,138)
Change in unrealized appreciation of
investments during the period 37,673,622 31,037,957
- --------------------------------------------------------------------------------
Net increase/(decrease) in net assets
resulting from operations 45,789,422 (29,486,230)
FUND SHARE TRANSACTIONS:
Net increase/(decrease) in net assets from
Fund share transactions
(Note 4) 25,523,585 (67,073,603)
- --------------------------------------------------------------------------------
Net increase/(decrease) in net assets 71,313,007 (96,559,833)
NET ASSETS:
Beginning of period 94,361,876 190,921,709
- --------------------------------------------------------------------------------
End of period (including undistributed net
investment income of
$688,573 and distributions in excess of
net investment income
of $183,470, respectively) $165,674,883 $ 94,361,876
- --------------------------------------------------------------------------------
See Notes to Financial Statements.
<PAGE>
<TABLE>
PANORAMA TRUST
PICTET INTERNATIONAL SMALL COMPANIES FUND
- -----------------------------------------------------------------------------------------------
STATEMENTS OF CHANGES IN NET ASSETS
- -----------------------------------------------------------------------------------------------
<CAPTION>
SIX MONTHS ENDED
JUNE 30, 1999 YEAR ENDED
INCREASE/(DECREASE) IN NET ASSETS: (UNAUDITED) DECEMBER 31, 1998
- -----------------------------------------------------------------------------------------------
<S> <C> <C>
FROM OPERATIONS:
Net investment income $ 19,526 $ 104,494
Net realized gain on investments during the
period 292,863 2,368,064
Change in unrealized appreciation of
investments
during the period 554,674 1,313,688
- -----------------------------------------------------------------------------------------------
Net increase in net assets resulting from
operations 867,063 3,786,246
DISTRIBUTIONS TO SHAREHOLDERS:
Distributions to shareholders from net
realized gain on investments -- (1,857,131)
FUND SHARE TRANSACTIONS:
Net decrease in net assets from Fund share
transactions
(Note 4) (1,038,250) (20,002,739)
- -----------------------------------------------------------------------------------------------
Net decrease in net assets (171,187) (18,073,624)
NET ASSETS:
Beginning of period 5,699,411 23,773,035
- -----------------------------------------------------------------------------------------------
End of period (including undistributed net
investment income of $3,988
and distributions in excess of net
investment income of $15,538,
respectively) $ 5,528,224 $ 5,699,411
- -----------------------------------------------------------------------------------------------
See Notes to Financial Statements.
</TABLE>
<PAGE>
<TABLE>
PANORAMA TRUST
PICTET EASTERN EUROPEAN FUND
- -------------------------------------------------------------------------------------------------
STATEMENTS OF CHANGES IN NET ASSETS
- -------------------------------------------------------------------------------------------------
<CAPTION>
SIX MONTHS ENDED
JUNE 30, 1999 YEAR ENDED
INCREASE/(DECREASE) IN NET ASSETS: (UNAUDITED) DECEMBER 31, 1998*
- -------------------------------------------------------------------------------------------------
<S> <C> <C>
FROM OPERATIONS:
Net investment loss $ (4,437) $ (826)
Net realized loss on investments during the
period (108,669) (537,188)
Change in unrealized appreciation/
(depreciation) of investments
during the period 402,739 (378,647)
- -------------------------------------------------------------------------------------------------
Net increase/(decrease) in net assets
resulting from operations 289,633 (916,661)
DISTRIBUTIONS TO SHAREHOLDERS:
Distributions to shareholders from net
investment income -- (16,740)
FUND SHARE TRANSACTIONS:
Net increase/(decrease) in net assets from
Fund share transactions
(Note 4) (163,503) 2,569,419
- -------------------------------------------------------------------------------------------------
Net increase in net assets 126,130 1,636,018
NET ASSETS:
Beginning of period 1,636,018 --
- -------------------------------------------------------------------------------------------------
End of period (including distributions in
excess of net investment income of $6,662
and $2,225, respectively) $ 1,762,148 $ 1,636,018
- -------------------------------------------------------------------------------------------------
*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
- ---------------------------------------------------------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS
- ---------------------------------------------------------------------------------------------------------------------------------
FOR A FUND SHARE OUTSTANDING THROUGHOUT EACH PERIOD.
<CAPTION>
SIX MONTHS
ENDED YEARS ENDED DECEMBER 31,
JUNE 30, 1999 -------------------------------------------------------------------
(UNAUDITED) 1998 1997 1996(a) 1995*(a)
- ---------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Net asset value, beginning of
period $6.81 $8.87 $10.13 $9.51 $10.00
- ---------------------------------------------------------------------------------------------------------------------------------
Income from investment operations:
Net investment income 0.05 0.04 0.04 0.07 0.02
Net realized and unrealized
gain/(loss) on
investments 2.87 (2.10) (1.18) 0.71 (0.49)
- ---------------------------------------------------------------------------------------------------------------------------------
Total from investment operations 2.92 (2.06) (1.14) 0.78 (0.47)
- ---------------------------------------------------------------------------------------------------------------------------------
Distributions to shareholders:
Distributions from net
investment income -- -- (0.02) (0.07) (0.02)
Distributions from net
realized capital gains -- -- (0.10) (0.09) --
- ---------------------------------------------------------------------------------------------------------------------------------
Total distributions -- -- (0.12) (0.16) (0.02)
- ---------------------------------------------------------------------------------------------------------------------------------
NET ASSET VALUE, END OF PERIOD $9.73 $6.81 $8.87 $10.13 $9.51
- ---------------------------------------------------------------------------------------------------------------------------------
Total return++ 42.88% (23.22)% (11.29)% 8.32% (4.72)%
- ---------------------------------------------------------------------------------------------------------------------------------
Ratios to average net assets/supplemental
data:
Net assets, end of period (in 000's) $165,675 $94,362 $190,922 $122,047 $9,623
Ratio of operating expenses 1.70%+ 1.70% 1.70% 1.705% 1.95%+
Ratio of net investment income 1.51%+ 0.55% 0.32% 0.88% 0.68%+
Ratio of operating expenses
without waivers and reimbursements 1.92%+ 2.00% 1.84% 2.20% 8.39%+
Portfolio turnover rate 70% 123% 77% 48% 5%
- ------------
* Pictet Global Emerging Markets Fund commenced operations on October 4, 1995.
+ Annualized.
++ Total return represents aggregate total return for the periods indicated.
(a) Per share amounts have been restated to reflect the stock dividend of 9 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 YEARS ENDED DECEMBER 31,
JUNE 30, 1999 ----------------------------------------------------------
(UNAUDITED) 1998 1997 1996*(a)
- -----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Net asset value, beginning of period $6.55 $9.24 $10.15 $10.00
- -----------------------------------------------------------------------------------------------------------------------------------
Income from investment operations:
Net investment income 0.02 0.07+++ 0.08 0.09
Net realized and unrealized gain/(loss) on
investments 1.10 0.41 (0.86) 0.20
- -----------------------------------------------------------------------------------------------------------------------------------
Total from investment operations 1.12 0.48 (0.78) 0.29
- -----------------------------------------------------------------------------------------------------------------------------------
Distributions to shareholders:
Distributions from net investment income -- -- (0.13) (0.12)
Distributions from net realized capital
gains -- (3.17) -- (0.02)
Distributions from capital -- -- -- (0.00)#
- -----------------------------------------------------------------------------------------------------------------------------------
Total distributions -- (3.17) (0.13) (0.14)
- -----------------------------------------------------------------------------------------------------------------------------------
NET ASSET VALUE, END OF PERIOD $7.67 $6.55 $9.24 $10.15
- -----------------------------------------------------------------------------------------------------------------------------------
Total return++ 17.10% 5.35% (7.68)% 2.85%
- -----------------------------------------------------------------------------------------------------------------------------------
Ratios to average net assets/supplemental data:
Net assets, end of period (in 000's) $5,528 $5,699 $23,773 $25,743
Ratio of operating expenses 1.20%+ 1.20% 1.20% 1.20%+
Ratio of net investment income 0.72%+ 0.65% 0.82% 1.04%+
Ratio of operating expenses without
waivers and reimbursements 4.50%+ 2.36% 2.20% 2.46%+
Portfolio turnover rate 92% 132% 90% 53%
- ------------
* Pictet International Small Companies Fund commenced operations on February 7, 1996.
+ Annualized.
++ Total return represents aggregate total return for the periods indicated.
+++ Per share numbers have been calculated using the average share method.
# Amount represents less than $0.01 per share.
(a) Per share amounts have been restated to reflect the stock dividend of 9 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>
<TABLE>
PANORAMA TRUST
PICTET EASTERN EUROPEAN FUND
- -------------------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS
- -------------------------------------------------------------------------------------------
FOR A FUND SHARE OUTSTANDING THROUGHOUT EACH PERIOD.
<CAPTION>
SIX MONTHS
ENDED PERIOD
JUNE 30, 1999 ENDED
(UNAUDITED) DECEMBER 31, 1998*
- -------------------------------------------------------------------------------------------
<S> <C> <C>
Net asset value, beginning of period $6.54 $10.00
- -------------------------------------------------------------------------------------------
Income from investment operations:
Net investment income/(loss) (0.02) 0.00#
Net realized and unrealized loss on investments 1.47 (3.39)
- -------------------------------------------------------------------------------------------
Total from investment operations 1.45 (3.39)
- -------------------------------------------------------------------------------------------
Distributions to shareholders:
Distributions from net investment income -- (0.07)
- -------------------------------------------------------------------------------------------
Total distributions -- (0.07)
- -------------------------------------------------------------------------------------------
NET ASSET VALUE, END OF PERIOD $7.99 $6.54
- -------------------------------------------------------------------------------------------
Total return++ 22.17% (33.93)%
- -------------------------------------------------------------------------------------------
Ratios to average net assets/supplemental data:
Net assets, end of period (in 000's) $1,762 $1,636
Ratio of operating expenses 2.00%+ 2.00%+
Ratio of net investment income (0.57)%+ (0.06)%+
Ratio of operating expenses without waivers and
reimbursements 11.74%+ 9.97%+
Portfolio turnover rate 85% 91%
- ------------
* Pictet Eastern European Fund commenced operations on April 7, 1998.
+ Annualized.
++ Total return represents aggregate total return for the periods indicated.
# Amount represents less than $0.01 per share.
See Notes to Financial Statements.
</TABLE>
<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 currently
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 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 exchange 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 the 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 distributions
to shareholders are recorded on the ex-dividend date and are reinvested
automatically in additional shares of the Funds at the net asset value next
determined after such dividend or distribution is declared.
Taxation: 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 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 the Funds, has 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 monthly, 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 annual 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.
First Data Investor Services Group, Inc. ("Investor Services Group"), a
wholly-owned subsidiary of First Data Corporation serves as the Trust's
administrator, accounting agent and transfer agent. Investor Services Group,
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 administration services, Investor
Services Group is entitled to receive $220,000 per annum from the Trust. In
addition, for its services as transfer agent, Investor Services Group is paid
separate compensation.
For the six months ended June 30, 1999, Pictet International and Investor
Services Group either waived fees and/or reimbursed expenses as follows:
<TABLE>
<CAPTION>
INVESTOR PICTET
SERVICES PICTET INTERNATIONAL
GROUP INTERNATIONAL EXPENSES
FEES WAIVED FEES WAIVED REIMBURSED TOTAL
- ---------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Pictet Global Emerging Markets Fund $ -- $126,478 $ -- $126,478
Pictet International Small Companies Fund 29,271 29,812 30,995 90,078
Pictet Eastern European Fund 30,451 11,482 34,354 76,287
- ---------------------------------------------------------------------------------------------------------------------------
</TABLE>
No officer, director or employee of Pictet International, Investor
Services Group, 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 Investor Services Group,
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, 1999 were as follows:
<TABLE>
<CAPTION>
PURCHASES SALES
- ----------------------------------------------------------------------------------------------------------------
<S> <C> <C>
Pictet Global Emerging Markets Fund $104,853,510 $78,445,070
Pictet International Small Companies Fund 5,168,590 6,085,778
Pictet Eastern European Fund 1,280,141 1,378,764
</TABLE>
At June 30, 1999, aggregate gross unrealized appreciation and unrealized
depreciation for tax purposes were as follows:
<TABLE>
<CAPTION>
UNREALIZED UNREALIZED NET UNREALIZED
APPRECIATION DEPRECIATION APPRECIATION
- -------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
Pictet Global Emerging Markets Fund $40,410,839 $6,928,849 $33,481,990
Pictet International Small Companies Fund 981,970 146,024 835,946
Pictet Eastern European Fund 213,384 189,691 23,693
</TABLE>
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, 1999 DECEMBER 31, 1998
SHARES AMOUNT SHARES AMOUNT
- -----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Pictet Global Emerging Markets Fund:
Sold 3,371,284 $27,196,338 4,881,501 $ 34,840,805
Redeemed (209,589) (1,672,753) (12,555,938) (101,914,408)
- -----------------------------------------------------------------------------------------------------------------------------------
Net increase/(decrease) 3,161,695 $25,523,585 (7,674,437) $(67,073,603)
- -----------------------------------------------------------------------------------------------------------------------------------
<CAPTION>
SIX MONTHS ENDED YEAR ENDED
JUNE 30, 1999 DECEMBER 31, 1998
SHARES AMOUNT SHARES AMOUNT
- -----------------------------------------------------------------------------------------------------------------------------------
Pictet International Small Companies Fund:
Sold -- $ -- 922,708 $ 10,125,000
Issued as reinvestment of dividends -- -- 284,836 1,857,130
Redeemed (150,000) (1,038,250) (2,908,938) (31,984,869)
- -----------------------------------------------------------------------------------------------------------------------------------
Net decrease (150,000) $(1,038,250) (1,701,394) $(20,002,739)
- -----------------------------------------------------------------------------------------------------------------------------------
<CAPTION>
SIX MONTHS ENDED PERIOD ENDED
JUNE 30, 1999 DECEMBER 31, 1998*
SHARES AMOUNT SHARES AMOUNT
- -----------------------------------------------------------------------------------------------------------------------------------
Pictet Eastern European Fund:
Sold 49,648 $ 378,319 291,402 $ 2,843,760
Issued as reinvestment of dividends -- -- 2,134 14,129
Redeemed (79,284) (541,822) (43,401) (288,470)
- -----------------------------------------------------------------------------------------------------------------------------------
Net increase/(decrease) (29,636) $ (163,503) 250,135 $ 2,569,419
- -----------------------------------------------------------------------------------------------------------------------------------
* Pictet Eastern European Fund commenced operations on April 7, 1998.
</TABLE>
At June 30, 1999, Pictet Global Emerging Markets Fund had five
institutional shareholders owning 24.53%, 13.64%, 12.49%, 12.32% and 10.49%,
respectively, of the outstanding shares of beneficial interest of the Fund.
At June 30, 1999, Pictet International Small Companies Fund had one
institutional shareholder owning 98.24% of the outstanding shares of
beneficial interest of the Fund.
At June 30, 1999, Pictet Eastern European Fund had one institutional
shareholder owning 17.04% 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, 1998, the Funds
elected to defer capital losses and currency losses occurring between November
1, 1998 and December 31, 1998 as follows:
<TABLE>
<CAPTION>
CAPITAL LOSSES CURRENCY LOSSES
- ----------------------------------------------------------------------------------------------------------------
<S> <C> <C>
Pictet Global Emerging Markets Fund $2,450,647 $183,465
Pictet International Small Companies Fund 376,173 7,622
Pictet Eastern European Fund -- 2,225
</TABLE>
Such losses will be treated as arising on the first day of the year ending
December 31, 1999.
7. CAPITAL LOSS CARRYFORWARDS
At December 31, 1998, the following Funds had available for Federal income
tax purposes unused capital losses as follows:
<TABLE>
<CAPTION>
EXPIRING IN 2006
- --------------------------------------------------------------------------------------------------------------
<S> <C>
Pictet Global Emerging Markets Fund $60,580,799
Pictet Eastern European Fund 521,873
</TABLE>
