<PAGE>
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PANORAMA TRUST
PICTET GLOBAL EMERGING MARKETS FUND
PICTET INTERNATIONAL SMALL COMPANIES FUND
PICTET EASTERN EUROPEAN FUND
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[GRAPHIC OMITTED]
ANNUAL REPORT
DECEMBER 31, 1999
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PANORAMA TRUST
PICTET GLOBAL EMERGING MARKETS FUND
PICTET INTERNATIONAL SMALL COMPANIES FUND
PICTET EASTERN EUROPEAN FUND
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Dear Shareholders,
It is with pleasure that I present a combined 1999 Annual Report which
summarizes the performance last year together with our outlook for 2000 for all
three Funds.
In 1999, Emerging Markets recovered strongly and produced the positive
returns for investors that we predicted this time last year. We saw a rebound in
the East Asian economies and the Fund was able to benefit from its overweight
positioning in this region. Further benefit was gained by the underweight stance
taken in Latin America where the poor economic environment overrode the
improving value of the region relative to Asia.
International Small Companies had an excellent year and also fulfilled our
performance expectations with a resurgence within these markets. Our outlook
continues to be optimistic for this asset class where we identify outstanding
investment opportunities.
Eastern Europe completed the picture of strong performance. The Russian
portion of the Fund was a major contributor with a strong rally in the last
quarter of 1999. Our outlook remains positive and we believe we are well
positioned to benefit from the expected uncovering of corporate value as a
result of the convergence play of Central Eastern Europe.
Over the year we have seen continued demand by investors for access to
carefully structured investment vehicles which offer attractive and
complementary asset classes. We look forward to helping you, the shareholders,
achieve your investment objectives in 2000.
Yours sincerely,
/s/ Jean Pilloud
Jean Pilloud
President and Chairman
o Investing in foreign securities may involve certain additional risks,
including exchange rate fluctuations, less liquidity, greater volatility and
less regulation.
o The risks may be magnified for emerging markets.
o Small company stocks may be subject to a higher degree of market risk than the
securities of more established companies because they tend to be more volatile
and less liquid.
<PAGE>
PANORAMA TRUST
PICTET GLOBAL EMERGING MARKETS FUND
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PORTFOLIO MANAGER'S REPORT
In 1999 the emerging markets recovered strongly. The value of the Fund rose
63.7% while the IFC Global Composite Index rose by 62.7%.
After the troubles faced in the previous year, emerging markets looked to
1999 with some trepidation. BRAZIL'S January devaluation seemed to play to these
fears, and all the talk was of a coming CHINESE devaluation that would trigger a
second round of Asian collapses. But Brazilian equities rapidly rose to more
than compensate for the real's fall; and China refused to blink. Instead, the
East Asian economies rebounded and their stock markets did likewise, much to our
benefit as we were heavily overweight in the region. China's steadiness was
rewarded with a World Trade Organization agreement with the USA. Regional export
growth, helped by the first stirrings of life from Japan, and then the
beginnings of a recovery in consumer spending and private investment have become
visible. Corporate restructuring (such as the attempt to save Daewoo in KOREA),
low interest rates and benign liquidity conditions held investors' attention.
Our heavy INDONESIAN position was rewarded by successful elections, the first in
over three decades. But patience remains necessary in PAKISTAN thanks to
economic mismanagement and a military coup. INDIA'S reforming government won a
strengthened mandate, and cyclical recovery and the return of the retail
investor -- last seen in 1992 -- are driving stocks to record local highs.
Our position in Asia has been cut back over the course of the year as the
relative value of Latin America has improved. Suffering economies abound --
notably ARGENTINA -- and we have little money outside our overweighting of
BRAZIL, which has been the best regional performer since we took this view in
September. Strong foreign inflows and falling domestic rates have driven
equities, despite slow progress towards necessary fiscal and social security
reforms and the president's popularity hitting an all-time-low. MEXICO has been
the other good Latin market, with an improving macroeconomic environment leading
to talk of a possible S&P upgrade to investment status. Elections in July are
hanging over local sentiment, but the future looks interesting.
SOUTH AFRICA paid the price of hiking interest rates by 10% during Russia's
1998 crisis, but equities benefited from the turn in the global commodity cycle.
Rates are now back down and the post-Mandela government is seeing the economy
turn, if sluggishly. Much the best performing emerging markets in 1999 were our
only recent overweight positions in Europe: Turkey and Russia. A new coalition
government in TURKEY has survived its failure to respond effectively to the
August earthquake, and now has the International Monetary Fund and European
Union in support as it tries to tackle the country's perennial economic
difficulties. The Istanbul stock exchange has more than trebled over the year.
RUSSIA was helped by the near-trebling of crude oil prices since the low of $9
per barrel at the end of 1998, but the market remains far below its 1997 peak.
Slow but real economic progress was overshadowed by endless politicking, which
peaked on the last day of the year with President Yeltsin's resignation. The
rest of Europe has had little to offer us this year. GREECE has been in a
locally-fuelled speculative bubble focused on Euro-convergence and an Olympian
construction boom, and valuations are beyond what we could justify buying.
Central Europe remains hindered by poor economics, but restructuring progress in
POLAND and HUNGARY and a recovery in the outlook for Germany are improving their
prospects.
Looking ahead Asia continues to look favorable, especially CHINA and
MALAYSIA. We remain cautious on KOREA and TAIWAN. Corporate restructuring has
longer to run and valuations continue to look attractive, despite this year's
rise. We plan to maintain our overweight stance on BRAZIL but are underweight
all the other countries in Latin America as the poor economic environment
overrides their value relative to Asia. VENEZUELA could soon be interesting; but
MEXICO'S high correlation to the United States is still a cause for concern. In
Europe we plan to continue to be positive on TURKEY, and RUSSIA remains
interesting given the strength of oil prices. SOUTH AFRICA'S commodity plays and
improving domestic economy continue to offer opportunities.
<PAGE>
PANORAMA TRUST
PICTET GLOBAL EMERGING MARKETS FUND
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FUND COUNTRY WEIGHTS AS A PERCENTAGE OF NET ASSETS
AT DECEMBER 31, 1999
South Africa 11.5
Turkey 10.9
Taiwan 10.4
India 9.2
South Korea 9.2
Brazil 8.2
China 7.6
Mexico 6.6
Malaysia 5.9
Indonesia 5.6
Thailand 2.9
Russia (Fed.) 2.6
Cash 2.2
Philippines 1.7
Egypt 1.3
Poland 0.9
Pakistan 0.8
Chile 0.7
Greece 0.5
Argentina 0.5
Czech Republic 0.3
Venezuela 0.2
Peru 0.1
Ghana 0.1
Slovak Republic 0.0
Miscellaneous 0.0
FUND COUNTRY WEIGHTS VERSUS IFC GLOBAL COMPOSITE INDEX
AT DECEMBER 31, 1999
Greece -6.6
Taiwan -5.2
South Korea -4.1
Chile -2.3
Saudia Arabia -2.3
Israel -1.8
Mexico -1.3
Argentina -1.3
Hungary -0.9
Morroco -0.6
Peru -0.5
Colombia -0.4
Bahrain -0.3
Jordan -0.3
Oman -0.2
Nigeria -0.1
Zimbabwe -0.1
Philippines -0.1
Sri Lanka -0.1
Venezuela -0.1
Slovak Republic 0.0
Portugal 0.0
Other 0.0
Czech Republic 0.0
Poland 0.2
Egypt 0.6
Pakistan 0.6
Thailand 1.0
Malaysia 1.1
Russia (Fed.) 1.4
China 1.7
Brazil 2.0
India 2.9
South Africa 4.2
Indonesia 4.3
Turkey 8.5
Source: Pictet International Management Limited.
The above shows the absolute over/under-weightings of the Fund relative to its
Index.
<PAGE>
PANORAMA TRUST
PICTET GLOBAL EMERGING MARKETS FUND
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MARKET REVIEWS & INVESTMENT OUTLOOK
The fourth quarter put the finishing touch to an extraordinary year during
which the emerging market indices recovered their early 1998 highs, before
surging to new levels in the last two months of the year. After the devastation
of the Asian crisis, the Russian devaluation, the collapse of the LTCM hedge
fund, and finally the Brazilian devaluation, the performance of the asset class
in 1999 gives us confidence that all the risks are now discounted and global
investors are beginning to return. On average, the fourth quarter returned over
25% making a total return for the year of over 60%. The emerging market indices
have outperformed the MSCI World Index consistently since September 1998.
The case for investing in emerging markets remains powerful and is built on
several pillars. Global liquidity remains abundant and investors are willing to
move further out along the risk curve than in recent history. This explains the
enormous spread contraction we have seen in emerging market bonds, which are
leading the re-rating of equity markets. This factor has further to go: with the
EMBI+ spread currently at around 800 bps over US Treasuries, a further 100-150
bps of tightening is not demanding. Perhaps more importantly, the substantial
upward revisions we have witnessed in global GDP for 2000 underpin the cyclical
recovery in the developing world. Exports should pick up providing balance of
payments support, currency strength, surplus domestic liquidity and a further
narrowing of the risk premium. In summary, the vicious circle in which many of
these countries were trapped appears to have turned into a virtuous one. Higher
growth and strong current accounts may relieve political pressures and allow
more disciplined economic policies, which in turn should be rewarded in the
equity markets.
What are the risks? Almost all are exogenous factors, the most important of
which is the inflation environment, particularly in the United States. A benign
US environment is a pre-requisite to the continued out-performance of the
emerging markets. Substantially higher interest rates or an inverted yield curve
could severely impact capital flows into riskier assets. Slower than expected
growth in the Euro area or in Japan could also jeopardize the global cyclical
recovery, dampening down commodity prices and delaying the balance of payments
recoveries, especially in Eastern Europe and Latin America.
ASIA
Asia recovered strongly in the fourth quarter after the profit taking
experienced mid year. The best markets were Indonesia (41% in Q4 and 91% for the
year), Thailand (40% in Q4 but only 47% in 1999) and Korea (31% in Q4 and 111%
for the full year). Indonesia recovered as the political environment stabilized
after the October elections. The currency also recovered to the 7000 level,
ignoring repeated setbacks on the enactment of the crucial banking sector
reforms (Standard Chartered scrapped its takeover of the scandal-ridden Bank
Bali) and more signs of separatist movements in parts of the archipelago. The
domestic economy is now clearly growing, as evidenced by some good earnings
reports in the consumer sector. The Korean market stormed back as the Daewoo
troubles gradually evaporated from investors' minds. Exports continue to boom
(especially electronics and cars), which has kept the current account surplus
high, contrary to earlier expectations. The Thai market rose almost entirely due
to buying in the telecom and Internet related stocks. However banking shares
began to recover in December, as there were signs of reducing non-performing
loans. Malaysia, Taiwan and the Philippines were poor in the fourth quarter but
we maintain our confidence in Malaysia. The market shrugged off foreign selling
prior to the lifting of capital controls in September, and the decision by MSCI
to postpone its reinclusion into the main benchmarks until May 2000. In October
Moody's upgraded six of the main banks and in December the incumbent Prime
Minister Mahatir was returned to power, as expected. Although valuations are
fair at best, the market looks likely to attract significant local and foreign
liquidity especially if, as rumored, the remaining capital restrictions (a 10%
withholding tax) are removed this year. Taiwan has not benefited from the heavy
technology component despite a strong recovery in shipments following the
September earthquake. The index has been held back by the poor performance of
the banking sector and jitters over the March presidential elections. The
Philippines has traded sideways as the roaring export sector still contrasts
strongly with the poor domestic economy, as evidenced by rising non-performing
loans in the banking sector. Accusations of corruption against the Estrada
administration are rife; there has been a cabinet reshuffle and rising political
uncertainty.
EUROPE
Europe produced the two star performers, both for the quarter and the year.
Turkey rose (103% in Q4 and 255% for the year) and Russia rose (116% in Q4 and
247% for the year), but the rest of the region was relatively subdued. Turkey
reminds us very much of Brazil in 1993/1994, a very cheap stock market in a
country on the cusp of a restructuring boom. The signing of the International
Monetary Fund (IMF) accord last quarter could mark the beginning of fiscal
discipline and interest rates have already halved in expectation. Unlike Brazil,
Congress has wasted no time passing the necessary legislation; a very positive
sign. Turkey must now deliver. Russia is at a much earlier stage, the asset
revaluation point. The stock market fell by 95% from its peak to the low and is
currently in the process of correcting this disparity. This move is supported by
very strong liquidity: inflation remains under control and there is a high
current account surplus, boasted by strong oil prices. Politically, Yeltsin's
resignation and the effective hand picking of his successor has been warmly
received by the markets. Whilst remaining vague, Putin, the new Prime Minister,
has tried hard not to alienate investors. The risk remains high but at current
market levels, the downside appears limited. Our views are mixed elsewhere in
Europe although Hungary (25% in Q4 but only 15% for the year) has some
opportunities. Here the economic numbers have been in a consistently positive
trend. We expect further cuts in interest rates early this year which could
boost the stock market. The current account appears under control, removing one
source of worry, and industrial production is rising at over 14% on an annual
basis. In Poland (25% for Q4 but only 22% for the year) the market remains
concerned about the current account, despite strong Foreign Direct Investment
flows. This has translated into extreme currency volatility. In Czech Republic
(-9% in Q4 and -1% for the year) the market remains depressed due to the lack of
transparency and persisting structural problems. This is despite the fact that
it is the most geared economy to the European recovery, after Hungary. Greece
(-7% in Q4 but 66% for 1999) remains our biggest underweight in Europe. The
stock market has been highly volatile with retail domestic investors accounting
for the majority of volume. Despite being firmly on the convergence track, we
cannot justify the current valuations with the exception of a few stocks like
Panafon or OTE.
MIDDLE EAST, AFRICA AND INDIA
We are overall positive on the region with Pakistan, South Africa and India
as firm favorites. The October military coup in Pakistan (9% in Q4 and 40% for
the year) was welcomed locally but condemned internationally (with words rather
than actions). The new government's attempts to fix the country's economic ills,
and endemic corruption, have yet to yield results but local investors are
hopeful. In India (11% in Q4 but 18% for the year) the outperformance was driven
by the October elections where an excellent result for the BJP coalition
eventually drove the index back up to its old highs. The new government has been
quick to wield its majority, for example by imposing much needed 40% increases
in fuel prices. Privatization will be the next key test. Foreign investors'
confidence has improved, with buying interest joining local activity in focusing
on the technology sector. We continue to hold tech shares, plus selected
cyclicals which look likely to benefit from the incipient economic recovery.
South Africa (20% in Q4 and 56% in 1999) is a market we have recently been
adding to. The index returns mask huge gains in some cyclical stocks whereas
banks and gold mines have been held back. With the economy now in a strong
recovery interest rates may only have another 100-150 bps to fall. The banking
sector, one of the laggards, has recently started to consolidate which could
help the market rally.
LATIN AMERICA
Latin America's two main markets also enjoyed a very strong end to the year
although Brazil (61%) only just matched the 67% benchmark return for the year.
Mexico (35%) comfortably beat the index in 1999, rising 79%. In Brazil the
defeat of inflation has led to lower rates and a huge shift into equities by
local investors. When combined with foreign buying, daily volumes on the
exchange have soared. Moody's upgraded the local currency debt and restructuring
fever hit the telecom sector as the controlling groups sought to buy out the
minority shareholders in their operating subsidiaries. The Mexican market was
boosted by strength in telecom and Internet related stocks, as well as soaring
bank stocks. The latter were boosted by the sudden possibility of early approval
of the new bankruptcy law. Industrial production growth which decelerated in
October, resumed its strong trend in November (6% year-on-year) providing
further support to equity prices. Elsewhere in Latin America, the markets
continued to disappoint, blighted by a lack of liquidity and domestic problems.
Argentina's (4% in Q4 but only 33% for the year) fixed currency regime continues
to exact a heavy price on the economy. Politically there has been progress with
deficit cutting measures, thanks to IMF support, but the country's US$50bn
financing requirement in 2000 looks daunting. In Chile (14% in Q4 but only 35%
in 1999) the economic recovery seems clearly in place but the presidential
election is too close to call at the time of writing and has held back equity
returns. The smaller Latin markets have been almost forgotten, posting negative
returns in many cases. We highlight Venezuela for cheap valuations and note that
President Chavez, whilst unconventional in his public speeches, has not actually
implemented any unorthodox measure in his first year as President. The other
markets are almost uninvestible for the average foreign investor at current
levels of liquidity.
<PAGE>
PANORAMA TRUST
PICTET INTERNATIONAL SMALL COMPANIES FUND
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PORTFOLIO MANAGER'S REPORT
International small companies had an excellent year in 1999, outperforming
large caps by a significant margin to reverse two years of poor performance. We
are pleased to report that the Fund recorded a gain of 86% over the year, more
than 50% ahead of the HSBC World ex-US Smaller Companies Index. Our focus on
companies in the most exciting segments of the European and Asian economies,
such as information technology, electronics, media, leisure and other services,
was the basis for this outperformance.
1999 marked the appearance of exciting new themes in international markets.
Japan staged a spectacular return to form and the local component of the
benchmark index rose more than 115% in Dollar terms. This surge in enthusiasm
can be attributed to the emergence of "New Japan" segments of the economy, such
as technology, communications and services, and the potential for corporate
restructuring. International investors embraced these trends early but the
increase in the number of Japanese funds dedicated to these sectors demonstrate
that the idea has taken hold at home as well.
The European equity landscape also changed significantly in 1999. Markets
such as the Neuer Markt and the Nouveau Marche have given many of Europe's most
exciting young companies the opportunity to go public. The growth in the number
and value of listed companies in more rapidly growing segments of the economy,
together with the gradual shift of savings out of traditional fixed income
instruments, was a powerful combination. While the overall performance of
European small caps was lacklustre in a global context, growth stocks had an
outstanding year.
One other important theme in 1999 was the recovery of Asian economies from
the crisis which engulfed the region in 1998. The resilience of the US economy
and the recovery in Europe, together with positive liquidity conditions in the
region, were the catalysts for this resurgence.
Concerns over valuations of growth stocks in Japan and Europe have forced us
to book profits on many of the top performing stocks in the portfolio. It has
been easier to reinvest in more attractively priced securities in Europe than in
Japan, and consequently, we are currently overweight in Europe, and underweight
in Japan. Funds expect to be reinvested in Japan to take advantage of stock
specific opportunities, or to participate in any improvement in the outlook for
companies in more traditional sectors of the economy. We have identified several
outstanding investment opportunities in Asia ex-Japan, and consequently we are
fully weighted in the region.
<PAGE>
PANORAMA TRUST
PICTET INTERNATIONAL SMALL COMPANIES FUND
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FUND COUNTRY WEIGHTS AS A PERCENTAGE OF NET ASSETS
AT DECEMBER 31, 1999
UK 19.6
Japan 15.2
France 14.1
Germany 10.2
Switzerland 9.1
Finland 4.8
Italy 4.4
Australia 3.5
Netherlands 3.3
Denmark 3.2
Hong Kong 2.5
Singapore 2.2
Cash 1.8
China 1.8
Norway 1.4
Spain 0.8
Belgium 0.8
Sweden 0.7
Austria 0.6
FUND COUNTRY WEIGHTS VERSUS HSBC JAMES CAPEL WORLD EX-U.S. SMALLER COMPANIES
AT DECEMBER 31, 1999
Japan -12.1
Spain -2.2
Sweden -2.1
Ireland -1.4
New Zealand -1.2
Netherlands -1.1
Portugal -1.1
Austria -0.9
Italy -0.4
Singapore -0.4
Norway -0.4
Belgium -0.4
Denmark -0.3
Malaysia 0.0
Other 0.0
Australia 0.1
Hong Kong 0.3
UK 0.9
Finland 2.9
Switzerland 4.6
Germany 6.3
France 7.2
Source: Pictet International Management Limited.
The above chart shows the absolute over/under weightings of the Fund relative to
its Index at the end of the fourth quarter.
<PAGE>
PANORAMA TRUST PICTET INTERNATIONAL
SMALL COMPANIES FUND
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MARKET REVIEWS & INVESTMENT OUTLOOK
CONTINENTAL EUROPE
The final quarter of 1999 was marked by confirmation of the positive
economic trends which have placed Continental Europe on a very strong footing
for the coming year. Gross Domestic Product growth is now expected to exceed 3%
in 2000, up from an estimated 2.1% in 1999. Key to the improvement has been the
upturn in the manufacturing sector on the strength of improving global economic
conditions and the competitive advantage derived from the depreciation of the
Euro.
Much of the good news in the final quarter came from two of the region's
laggards, Germany and Italy. Germany's key driven survey of business confidence
has risen to an 18 month high and the rate of growth of manufacturing orders has
increased. Business sentiment has also improved in Italy, led by the recovery of
exports, and the Italian government now expects the economy to grow more than 2%
in 2000, up from an estimated 1.3% in 1999, the slowest rate of growth in the
Eurozone group of countries.
This improvement in the fortunes of German and Italian manufacturers eases
the burden on France, which led the recovery in Europe, and on the consumer
sector, which had been the engine in the initial stages of this recovery. While
unemployment remains high by global standards, trends are encouraging and
consumer confidence is buoyant. Unemployment in the Eurozone dipped below 10%
for the first time since October 1992 led by significant reductions in the
number of jobless in France (7 year low), Germany (3 year low) and Italy (5 year
low).
At this point, the economic recovery has not resulted in a major
deterioration in the outlook for inflation. Rising oil prices have had a
negative impact on producer prices but the effects of the decline in the value
of the Euro have been limited as only about 10% of aggregate regional demand is
met by imports. The annual rate of growth in consumer prices expanded to 1.6% in
November, a 2 year high, but this is still well within the European Central
Bank's (ECB) 2% upper band.
One area of concern, however, may be the disparate rates of change in prices
within the region. While inflation is only about 1% in France and Germany,
prices are rising at a much faster rate in some of the smaller Eurozone
countries. We should also acknowledge the warning signals implicit in the rapid
rate of growth in money supply. The annualized 6% increase is well ahead of the
ECB's 4.5% "reference rate" of growth.
The ECB elected to counter these risks with a 50 basis point increase in
interest rates to 3% early in November. Markets interpreted this as a
pre-emptive strike which could reduce the need for more aggressive intervention
this year. Equity markets responded well although interest was confined to
familiar themes and technology, media and communications stocks outperformed
companies from more traditional industries by a wide margin.
This enthusiasm for growth stocks is warranted by excellent long-term
prospects and a supportive liquidity environment. However, the rally at the end
of last year pushed valuations to extreme levels in some sectors and we
continued to book profits on top performing stocks to reinvest in more
attractively valued securities.
Despite the risk of a correction in the near term, we remain positive on the
outlook for European small caps. Our enthusiasm reflects the belief that these
companies will be the principal beneficiaries of the emergence of "New Europe"
segments of the economy, such as technology, outsourcing and other business and
consumer services. Small caps may also benefit from the continued shift of
personal and institutional investment funds out of traditional fixed income
investments and into equities. Now that the biggest European investors have
largely completed the post-Euro restructuring of their large cap portfolios,
they should turn to the small and mid-cap markets for new investment ideas.
Finally, small cap investors may be the principal beneficiaries of the continued
flow of new issues from some of the region's most innovative companies.
UNITED KINGDOM
UK small caps had an excellent year relative to Continental Europe. Smaller
companies also outperformed local large caps by a wide margin to end a period of
underperformance which culminated in a dismal 1998. This improvement would have
been entirely warranted by fundamentals. UK small caps have the dual advantage
of being more highly geared to the improving local economy than blue chips, and
being far more reasonably valued. However, fundamentals actually had only a
limited impact in 1999. As in Europe, thematic appeal was more important and the
performance of UK small caps was led by companies in growth sectors, technology,
media and communications in particular.
The relatively subdued performance of cyclical and value stocks masks a
significant improvement in economic performance. GDP expanded an estimated 1.9%
in 1999, down from 2.2% in 1998, but expectations for 2000 have risen to about
2.8%. Unemployment has fallen to a 19 year low, income growth is strong, lending
is expanding quickly and house prices are rising at the fastest pace in 10
years. The tide has also turned in the beleaguered industrial sector; factory
orders have hit a two year high and exports are growing, which indicates that
manufacturers have finally come to terms with the relative strength of Sterling.
On the inflation front, consumer prices rose 2.2% in November, the 8th
consecutive month this indicator came in below the Bank's 2.5% target. Producer
prices are rising at an annual rate of about 2%. While these indicators do not
justify a much tighter stance on their own, the Bank is expected to focus
instead on the impact of rising wages, credit and house prices. The 25 basis
point increase in base rates announced in November, which pushed the base rate
up to 5.5%, does not appear to have dampened enthusiasm and the Bank is expected
to boost rates by a further 25 to 50 basis points in the coming months.
The portfolio had been positioned to take full advantage of the outstanding
performance of UK growth stocks in the latter part of 1999. Valuations in the
top performing sectors are at risk in a rising rate environment and we have
elected to lock-in gains on the best performing stocks over the past few months.
Experience has taught us that liquidity in the UK small cap market can disappear
quickly when sentiment turns and we are cautious on this market's potential
relative to the rest of Europe. However, there are a vast number of high quality
small caps listed in the UK and we have continued to identify new investment
candidates which have the potential to outperform the region. We expect to
maintain a neutral to slightly underweight position in this market in the coming
months.
JAPAN
The strong momentum that has characterized the Japanese equity market all
year continued in the first half of the quarter, so that by mid-November
over-the-counter (OTC) stocks had risen a further 25% from September's close.
However, aggressive profit taking in the high-flying sectors ahead of the
year-end saw the Jasdaq index up less than 15% at quarter end. Large caps
continued to underperform over the period, recording a more modest advance.
The market continued to be driven almost exclusively by the communication
and service sectors, both of which rose by more than 50% over the quarter,
maintaining the very narrow focus of investors. While the lack of market breadth
is something of a global phenomenon it appears to be particularly extreme in
Japan, where approximately 50% of the Nikkei's rise of nearly 70% this year can
be attributed to just ten stocks.
It has been a curious characteristic of Japan that while improving economic
fundamentals have undoubtedly been a major factor in the market's rise (indeed
the Topix index has shown a strong correlation with economic expectations for
the last decade), the performance of cyclical shares has been remarkably poor.
The construction, steel and metals sectors have all fallen by over 20% over a
period in which expectations for GDP growth rose by over half of one percent.
Foreign investors increased their weighting of cyclical shares but the failure
of this strategy to reap its reward so far reflects two factors; firstly the
fact that confidence in the economy for the next two years is not improving and
secondly, the ongoing deflationary pressure on raw material prices experienced
by Japanese producers.
Another relevant contributor is the extent to which the Japanese market has
been driven by international money flows, and the type of momentum investing
that has proved so successful in the US this year. It is too early to tell at
this stage whether the sharp declines in some of the stellar performers over the
final weeks of the year signals the return to a more value-orientated approach,
but there can be little doubt that at some stage this year such a narrow
methodology will have to be re-assessed.
The Bank of Japan's (BOJ) official assessment of the economy is mirrored by
that of investors in that neither sees strong signs of a self-sustaining
recovery. While external demand (especially from Asia) is strong, and public
works have been positive, private capital expenditure is falling and consumer
confidence is fragile. With the strength of the Yen a major risk to recovery,
the market is increasingly looking for monetized intervention from the BOJ to
provide the necessary liquidity in such a period of radical economic adjustment.
The longer term fundamentals are encouraging. While the most recent interim
results season showed modest growth in earnings of around 4% at the recurring
level, greater management focus and re-structuring should see strong gains in
the next two years regardless of the extent of macro-economic growth. Added to
that, foreign direct investment and merger activity are likely to be supportive.
We have recently trimmed our exposure to return to a modestly underweight
position, reflecting the excessive valuations to which many small caps have been
driven. However, we will interpret an increase in liquidity very positively, and
will be monitoring the BOJ's actions closely, and also looking for signs of
credit creation in the private sector.
ASIA PACIFIC
Asian markets performed strongly in the final quarter of the year due to
regional factors as well as a more optimistic outlook for the extent and timing
of future interest rate rises in the US. Notwithstanding some profit taking
ahead of the year end, most markets registered gains, with Hong Kong and
Singapore especially strong, rising around 20% and 15% respectively. Local
bourses on the Chinese mainland were the exception, all falling by over 10%.
November was the banner month, for not only were US equities responding
favorably to the new interest rate environment, but it was also the month in
which agreement was reached surrounding the terms under which China could join
the WTO. In Hong Kong, sentiment was also boosted by the Disneyland announcement
and the release of encouraging retail sales figures for September.
Hong Kong and China had been areas of disappointment amid the very buoyant
picture elsewhere in the region so signs of improvement were greeted
enthusiastically by investors. Employment conditions have been stabilizing in
Hong Kong, but unemployment fell only modestly in the most recent quarter
despite large scale infrastructure projects. In China also, very strong export
growth is being tempered by the inability of the Chinese authorities to "pump
prime" the domestic economy with aggressive fiscal spending. In both cases,
Keynesian policies are being frustrated by the rising propensities of
understandably cautious individuals to save while in the long term taxation will
have to rise to check the budgetary shortfalls. Thus investors view the
persistent deflation in China, which increased last month to 2.8% against 2.7%
for the previous quarter, with dismay, but responded very positively to the
fragile signs of a recovery of consumer confidence in Hong Kong.
In Singapore, markets rose as trade, industrial output and retail sales
figures indicated favorable domestic and external conditions for growth. Strong
global demand and increased pricing power in key sectors such as electronics
continues to bode well for the export sector while structural enhancements
through financial reforms should promote internal growth. Inflation has remained
subdued thus far though increased capacity utilization, a tighter labor market
and rising oil prices are likely to result in upward pressure on prices in the
medium term.
Australia's performance over the quarter was relatively lacklustre in spite
of a benign economic background, with the feature being the belated rally in
technology and communication shares. Metal prices were relatively subdued given
the much-hyped likelihood of a build up in inventories ahead of the year end as
long hedge positions were unwound.
While data in mainland China and Hong Kong is mixed, we believe that
economic liquidity in the region will remain firm enough to underpin markets,
with considerable room for upside as corporate newsflow improves. We are
concentrating our research efforts on high tech and service companies, adding to
our neutral weighting in the region on a bottom-up basis. Next quarter is likely
to see a number of attractive equity issues and we will endeavor to participate
where appropriate.
<PAGE>
PANORAMA TRUST
PICTET EASTERN EUROPEAN FUND
- --------------------------------------------------------------------------------
PORTFOLIO MANAGER'S REPORT
For the year the Fund returned 35.6% compared to 32.1% for the benchmark
with most of this performance being booked over the last months. Over the final
quarter of the year the Fund returned 35.2% compared to 27.4% for the Barings
Eastern Europe Index, producing an out-performance for the period of 7.8%.
The largest contribution (610 bps) to this out-performance came from the
Russian portion of the portfolio, with most of it from the stock selection (419
bps). Throughout the period we kept an overweight in the oil stocks. Our
favorites Surgutneftegaz and Tatneft largely outperformed the Russian market.
Surgutneftegaz being the best managed oil and gas company in Russia and the only
one that increased its production output, is currently trading above its 1998
pre-crisis levels. Tatneft managed to restructure its foreign debt and was
helped throughout the year by a strong oil price. Over the last quarter we moved
to accumulate UES and Rostelekom, both of which added performance in December.
In Poland, good stock selection especially in the last quarter combined with
an underweight position contributed to the Fund's overall out-performance of 58
bps. We were underweight the banks with the exception of Pekao and BRE. Telecoms
and the IT sectors were the other drivers behind the out-performance. Optimus,
the only Internet related play largely out-performed the index. In Hungary we
added 299 bps. We capitalized on our overweight in the chemicals and the
pharmaceuticals to add 201 bps through stock selection. In the Czech Republic we
remained underweight and added an additional 146 bps to the overall
out-performance. In this market our main bets have been in the telecom sector.
Peripheral markets such as Croatia (-259 bps) and Estonia (-50 bps) had an
overall largely negative effect on performance.
Towards the end of the year we increased our cash position due to the Y2K
concerns. The average position throughout the year was 4% and has contributed 44
bps to the overall performance. Currently we are increasing further the Russian
exposure which will reduce the cash level. The Fund, we believe, is well
positioned to benefit from the convergence play of Central Eastern Europe and
from a possible re-rating of the Russian market.
<PAGE>
PANORAMA TRUST
PICTET EASTERN EUROPEAN FUND
- --------------------------------------------------------------------------------
FUND COUNTRY WEIGHTS AS A PERCENTAGE OF NET ASSETS
AT DECEMBER 31, 1999
Poland 29.8
Hungary 29.7
Russia (Fed.) 25.1
Czech Republic 10.4
Croatia 2.5
Cash 1.6
Estonia 0.9
<PAGE>
PANORAMA TRUST
PICTET EASTERN EUROPEAN FUND
- --------------------------------------------------------------------------------
MARKET REVIEWS & INVESTMENT OUTLOOK
Eastern Europe saw in 1999 a significant rise in valuations with the Russian
market delivering a remarkable performance of over 100%. We expect in Central
Eastern Europe this trend to continue on the back of the expanding convergence
process and improving growth prospective for the core Euroland. In Russia the
recent developments should significantly reduce political instability and
further raise the upside for the equity market.
Throughout the period the POLISH market was under the mixed influence of
economic and corporate developments. In November the Monetary Policy Council
increased last time rates massively from 14% to 16.5% in response to a rapidly
intensifying concern about achieving the end-1999 inflation target. The shadow
of a ballooning current account deficit continued to hang over the market
throughout the whole period. On the corporate level within only two months
Elektrim saw its stock being downgraded from a major Eastern European blue chip
to a high risk holding with an uncertain future. At the same time the economy
continued to grow rapidly and posted its strongest real Gross Domestic Product
(GDP) growth for a year with a 4.9% rise in the third quarter. Foreign Direct
Invesment continues to be very strong, and the introduction to the stock market
of Polski Koncern Naftovi (PKN) was well received. Agora, the biggest media
publisher, is expected to unveil its Internet strategy this month and the stock
hit an all-time-high. Other Internet related stocks like Prokom and Optimus were
the market's favorites as an industry shift toward value added products is
taking place. Provided the government manages to control the current account
deficit, the Polish market could offer good upside especially on the back of
improved liquidity coming from the pension funds.
Especially over the last quarter of 1999 HUNGARY started to produce a
consistent stream of positive numbers which provided solid support for the stock
market. The current account appears under control and the GDP growth for 1999 is
expected to be above 4%. Industrial output rose 14.3% year-on-year in October,
following a 13.6% rise in September. All this culminated in a stock market rally
of 13.9% for the month of December and a yearly performance of nearly 40%.
Chemicals (Borsodchem, TVK) and pharmaceuticals (Richter) outperformed
consistently and continue to offer upside. Improved GDP growth, combined with a
benign current account deficit outlook, should continue to support Hungarian
asset prices and the exchange rate. This is likely to lead to another interest
rate cut in the first quarter of 2000.
Next to Hungary, the CZECH REPUBLIC is well positioned to benefit from the
European recovery. Improving trade balance was the immediate consequence, and
that despite the strong crown. Exports to the European Union now stand at almost
70% of total exports. Unfortunately this is unlikely to feed through to the
stock market in the near term due to persisting structural problems. In addition
there is the threat of rising inflation and interest rates. The market under
performed the rest of the universe which is likely to continue due to limited
liquidity and a small number of investible stocks.
In a last surprise move, Boris Yeltsin resigned on New Year's Eve. The
RUSSIAN market rallied sharply on the back of this news and Surgutneftegaz
exceeded its pre-crisis levels. It appears now that the political battle for the
presidency was won before it had really begun. In a very typical Russian way,
Yeltsin managed to handpick his successor, making Prime Minister Putin the
acting president. Given the outcome of the Duma elections, Putin will most
probably be elected as president and is likely to enjoy a much more co-operative
and friendly Duma. This new political alignment is very promising for Russia,
since it will enable the president to implement the long-needed reforms. Despite
the rally, major risks remain for the Russian market, the main one being Putin
himself. So far he has given very few and very vague indications of his true
intentions. The other major risk is that Putin may not, after all, be elected as
president. His popularity is almost entirely based on the Chechen campaign
which, as history shows, can very quickly turn sour. Nevertheless, chances are
that the new political alignment will survive and that Putin will prove
pragmatic enough and will move forward with the market reforms. We continue to
overweight the market but shift the emphasis from the oil stocks (Surgutneftegaz
and LUK-Oil) to the utilities and the telecoms.
Despite its recent rally, Russia remains an under valuation story. We
expect to continue to focus most of the Russian exposure in the large
capitalization stocks which so far has paid handsomely. The recent change of
power in Moscow is likely to bring a medium-term rerating of this market and we
aim to capitalize on improving liquidity in the second-tier stocks. In Central
Eastern Europe we overweighted Hungary on improved fundamentals and in
anticipation of strong foreign inflows. We expect that the restructuring in
Poland and the Czech Republic will uncover corporate value and are looking for
access ahead of market flotation.
<PAGE>
PANORAMA TRUST
PICTET GLOBAL EMERGING MARKETS FUND
- --------------------------------------------------------------------------------
PORTFOLIO HIGHLIGHTS -- DECEMBER 31, 1999
- --------------------------------------------------------------------------------
HYPOTHETICAL ILLUSTRATION OF $10,000 INVESTED IN
PICTET GLOBAL EMERGING MARKETS FUND
VS.
INTERNATIONAL FINANCE CORPORATION GLOBAL COMPOSITE INDEX
TOTAL RETURN+
Pictet Global International Finance
Emerging Corporation Global
Markets Composite Index
Fund Total Return
- --------------------------------------------------------------------------------
10/95 $10,000 $10,000
12/95 9,529 9,702
12/96 10,321 10,468
12/97 9,156 8,768
12/98 7,029 6,921
3/99 7,401 7,535
6/99 10,044 9,572
9/99 8,805 9,192
12/99 11,499 11,259
International Finance Corporation Global Composite Index Total Return is an
index composed of 1,650 stocks covering 27 markets.
Index information is available at month-end only; therefore, the closest
month-end inception date of the Fund has been used.
NOTE: The performance shown represents past performance and is not a guarantee
of future results. The Fund's share price and investment return will vary with
market conditions, and the principal value of shares, when redeemed, may be more
or less than original cost.
- --------------------------------------------------------------------------------
AVERAGE ANNUAL TOTAL RETURN*
PICTET GLOBAL EMERGING MARKETS FUND ACTUAL
----------------------------------- ------
Year Ended 12/31/99 63.58%
Inception (10/04/95) through 12/31/99 3.35%
- --------------------------------------------------------------------------------
* Assumes the reinvestment of all dividends and distributions.
<PAGE>
PANORAMA TRUST
PICTET INTERNATIONAL SMALL COMPANIES FUND
- --------------------------------------------------------------------------------
PORTFOLIO HIGHLIGHTS -- DECEMBER 31, 1999
- --------------------------------------------------------------------------------
HYPOTHETICAL ILLUSTRATION OF $10,000 INVESTED IN
PICTET INTERNATIONAL SMALL COMPANIES FUND
VS.
HSBC JAMES CAPEL WORLD EXCLUDING U.S. SMALL COMPANIES INDEX+
&
FINANCIAL TIMES/S&P WORLD EX-U.S. MEDIUM-SMALL CAP INDEX++
HSBC Financial Times/
Pictet James Capel World S&P World
International excluding ex-U.S.
Small U.S. Small Medium-Small
Companies Companies Cap
Fund Index Index
- --------------------------------------------------------------------------------
07-Feb-96 $10,000 $10,000 $10,000
31-Dec-96 10,285 10,649 10,297
31-Dec-97 9,495 9,284 9,207
31-Dec-98 10,003 9,590 10,540
31-Mar-99 10,645 9,940 10,699
30-Jun-99 11,719 11,089 11,222
30-Sep-99 12,890 12,039 11,674
31-Dec-99 18,651 12,814 12,308
+ The HSBC James Capel World excluding U.S. Small Companies Index is an index
composed of 1,200 smaller company stocks covering 21 markets.
++ The Financial Times/S&P World Indices are capitalization weighted indices.
The Financial Times/S&P World ex-U.S. Medium - Small Capitalization Index
represents the bottom 25% of the World Index in terms of market
capitalization.
Index information is available at month-end only, therefore, the closest
month-end inception date of the Fund has been used.
NOTE: The performance shown represents past performance and is not a guarantee
of future results. The Fund's share price and investment return will vary with
market conditions, and the principal value of shares, when redeemed, may be more
or less than original cost.
- --------------------------------------------------------------------------------
AVERAGE ANNUAL TOTAL RETURN*
PICTET INTERNATIONAL SMALL COMPANIES FUND ACTUAL
----------------------------------------- ------
Year Ended 12/31/99 86.45%
Inception (02/07/96) through 12/31/99 17.34%
- --------------------------------------------------------------------------------
* Assumes the reinvestment of all dividends and distributions.
<PAGE>
PANORAMA TRUST
PICTET EASTERN EUROPEAN FUND
- --------------------------------------------------------------------------------
PORTFOLIO HIGHLIGHTS -- DECEMBER 31, 1999
- --------------------------------------------------------------------------------
HYPOTHETICAL ILLUSTRATION OF $10,000 INVESTED IN
PICTET EASTERN EUROPEAN FUND
VS.
INTERNATIONAL FINANCE CORPORATION GLOBAL EASTERN EUROPE INDEX+
&
BARINGS EASTERN EUROPE INDEX++
Pictet International Finance Barings
Eastern Corporation Eastern
European Global Eastern Europe
Fund Europe Index Index
- --------------------------------------------------------------------------------
4/98 $10,000 $10,000 $10,000
6/98 7,790 6,365 6,916
9/98 5,360 3,097 4,033
12/98 6,607 3,977 5,052
3/99 6,576 4,142 4,820
6/99 8,071 5,319 6,042
9/99 6,627 4,459 5,239
12/99 8,960 6,258 6,672
+ The International Finance Corporation Global Eastern Europe Index is an index
composed of 141 stocks covering 5 markets.
++ The Barings Eastern Europe Index is an Index composed of 88 stocks covering 4
markets.
Index information is available at month-end only, therefore, the closest
month-end inception date of the Fund has been used.
NOTE: The performance shown represents past performance and is not a guarantee
of future results. The Fund's share price and investment return will vary with
market conditions, and the principal value of shares, when redeemed, may be more
or less than original cost.
- --------------------------------------------------------------------------------
AVERAGE ANNUAL TOTAL RETURN*
PICTET EASTERN EUROPEAN FUND ACTUAL
---------------------------- ------
Year Ended 12/31/99 35.63%
Inception (04/07/98) through 12/31/99 -10.40%*
- --------------------------------------------------------------------------------
* Assumes the reinvestment of all dividends and distributions.
<PAGE>
PANORAMA TRUST
PICTET GLOBAL EMERGING MARKETS FUND
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
Portfolio of Investments December 31, 1999
- --------------------------------------------------------------------------------
Value
Shares (Note 1)
- --------------------------------------------------------------------------------
COMMON STOCKS -- 93.6%
ARGENTINA - 0.5%
75,000 Quilmes Industrial SA, ADR $ 895,312
------------
BRAZIL - 4.0%
15,500 Brasil de Distribuicao Grupo SP, ADR 500,844
39,300 Cia Vale Do Rio Doce 913,700
16,240,000 Electropaulo Metropolitana SA 1,051,802
73,300 Embratel Participacoes SA, ADR 1,997,425
8,566,000 Light Servicos de Electricidade SA 943,611
18,700 Tele Centro Sul Participacoes, ADR 1,697,025
27,200,000 Tele Norte Leste Participacoes SA+ 489,344
------------
7,593,751
------------
CHILE - 0.7%
13,390 Cia Cervecerias Unidas SA, Sponsored ADR 429,317
45,660 Masisa SA, Sponsored ADR@ 587,872
11,450 Quimica y Minera de Chile SA, Sponsored ADR,
B Shares 361,391
------------
1,378,580
------------
CHINA - 7.6%
2,095,000 Beijing Datang Power Generation Company, Ltd.,
Class H+ 344,967
2,096,000 China Everbright International, Ltd. 1,725,658
980,000 China Merchants Holdings International Company, Ltd. 806,844
5,282,000 China Shipping Haisheng Company, Ltd.+ 1,046,412
493,000 China Telecom, Ltd. 3,082,241
1,580,000 Cosco Pacific, Ltd. 1,310,992
1,420,000 Great Wall Technology Co.+ 1,379,173
987,000 Guangdong Kelon Electric Holding, Class H 749,122
424,000 Legend Holdings, Ltd. 1,052,705
4,328,000 Shanghai Petrochemical Company, Ltd. 679,251
2,160,000 TCL International Holdings, Ltd.+ 1,514,376
2,658,000 Yizheng Chemical Fibre Company, Ltd., Class H+ 743,700
------------
14,435,441
------------
CZECH REPUBLIC - 0.3%
264,320 Ceske Energeticke Zavody AS+ 653,326
------------
EGYPT - 1.2%
150,000 Al Ezz Porcelain 292,918
93,999 Arabian International Construction 350,358
67,000 Commercial International Bank 978,730
200 Egyptian Financial and Industrial 1,754
25 Egyptian Starch & Glucose Manufacturing Company+ 135
136,585 Ezz Steel 399,284
16,883 Orascom Construction Industries+ 347,951
------------
2,371,130
------------
GHANA - 0.1%
47,500 Ashanti Goldfields GDR 124,688
------------
GREECE - 0.5%
70,900 Panafon Hellenic Telecom SA 951,968
------------
INDIA - 9.3%
83,647 India Access Fund, Ltd.+## 993,308
97,200 Larsen & Toubro, Ltd., GDR+ 3,231,900
80,000 Mahanagar Telephone Nigam, Ltd., GDR 900,000
20,000 Ranbaxy Laboratories, Ltd., GDR+ 442,000
120,000 Reliance Industries Ltd., GDR 1,716,000
90,000 State Bank of India, CDS 1,098,000
278,100 Tata Engineering and Locomotive Company, Ltd.,
Sponsored GDR 1,473,930
281,800 The India Fund, Inc. 4,720,150
25,000 Videsh Sanchar Nigam, Ltd., GDR+ 615,000
95,000 Videsh Sanchar Nigam, Ltd., GDR, S Shares 2,430,495
------------
17,620,783
------------
INDONESIA - 5.7%
2,652,000 Astra Agro Lestari Tbk 740,093
1,455,500 Astra International Tbk+ 781,127
101,312,000 Bank Internasional Indonesia (F) 2,174,855
365,000 Gudang Garam Tbk 982,039
54,000 Gulf Indonesia Resources, Ltd.+ 438,750
666,000 Indofood Sukses Makmur Tbk 833,989
3,675,000 Matahari Putra Prima Tbk 617,979
2,444,500 Pabrik Kertas Tjiwi Kimia 795,884
1,903,000 Ramayana Lestari Sentosa@ 1,606,826
167,308 Telekomunikasi Indonesia, ADR, Series B 1,840,388
------------
10,811,930
------------
MALAWI - 0.0%
9,000 Press Corporation, Ltd., GDR +@## 31,500
------------
MALAYSIA - 5.9%
458,000 AMMB Holdings Berhad 1,096,789
213,000 Genting Berhad 756,710
2,180,000 Land & General Berhad 963,789
508,000 Malayan Banking Berhad 1,804,737
414,000 Malaysia International Shipping Corporation Berhad 680,921
200,000 Malaysian Pacific Industries Berhad 1,289,474
70,000 Nestle Malaysia Berhad 302,105
2,500,000 Pan Malaysian Industries Berhad 476,974
410,000 Resorts World Berhad 1,176,053
247,000 Star Publications (Malaysia) Berhad 695,500
674,000 Tenaga Nasional Berhad 1,738,211
190,000 United Engineers (Malaysia) Berhad 302,500
------------
11,283,763
------------
MEXICO - 6.6%
78,000 Carso Global Telecom 732,665
726,000 Consorcio ARA, SA de CV 1,202,976
731,000 Controladora Comercial Mexicana SA de CV 979,810
141,000 Grupo Carso SA de CV, Series A1 702,396
832,000 Grupo Elektra SA de CV, CPO 820,146
66,000 Grupo Iusacell SA, Series L 973,500
320,000 Grupo Mexico SA, Class B 1,585,646
232,000 Grupo Sanborns SA, Series B+ 514,195
19,600 Grupo Televisa SA, Sponsored GDR 1,337,700
240,000 Hylsamex SA, BCP 704,169
86,800 Pepsi-Gemex SA, Sponsored GDR 558,775
16,000 Telefonos de Mexico SA, Sponsored ADR, Class L 1,800,000
68,600 TV Azteca, SA de CV, CPO Shares+ 617,400
------------
12,529,378
------------
PAKISTAN - 0.8%
1,480,000 Hub Power Company, Ltd. 609,823
250,086 Pakistan State Oil Company, Ltd. 936,344
------------
1,546,167
------------
PERU - 0.1%
10,500 Southern Peru Copper Corporation 162,094
------------
PHILIPPINES - 1.7%
2,770,000 Benpres Holdings Corporation+ 419,280
8,182,000 Filinvest Land, Inc.+@ 832,412
8,374,500 International Container Terminal Services, Inc.+@ 758,484
22,600 Philippine Long Distance Telephone 584,775
271,000 Philippine National Bank@ 638,834
------------
3,233,785
------------
POLAND - 0.9%
57,210 KGHM Polska Miedz SA, GDR 772,335
25,000 Netia Holdings SA, ADR+ 440,625
87,910 Telekomunikacja Polska, GDR, Series A 571,415
------------
1,784,375
------------
RUSSIA - 2.6%
80,000 Gazprom, ADR 678,000
20,600 LUKoil Holding, Sponsored ADR 831,725
300,000 Mosenergo, Sponsored ADR 1,057,500
271,100 Unified Energy Systems GDR 2,338,238
------------
4,905,463
------------
SLOVAKIA - 0.0%#
5,326 Nafta Gbely AS@## 45,724
------------
South Africa - 11.5%
44,000 Anglo American Plc 2,830,869
15,000 AngloGold, Ltd. 771,568
82,300 Anglovaal Mining, Ltd. 716,699
200,000 Barlow, Ltd. 1,439,480
100,000 De Beers Centenary, Linked Units 2,908,205
450,000 Iscor, Ltd. 1,703,493
50,000 Johnnies Industrial Corporation, Ltd.+ 584,890
700,000 Metro Cash and Carry, Ltd. 796,101
665,000 Sanlam, Ltd.+ 929,163
377,000 Sappi, Ltd. 3,724,062
190,000 Sasol, Ltd. 1,602,112
145,000 South African Breweries, Ltd. 1,474,736
271,700 Standard Bank Investment Corporation., Ltd. 1,127,853
113,000 Tiger Oats, Ltd. 1,303,493
------------
21,912,724
------------
SOUTH KOREA - 9.2%
12,230 Cheil Jedang Corporation 1,410,947
143,300 Hanjin Heavy Industries 706,719
28,000 H & CB 887,715
49,347 Hyundai Electronics Industries Company 1,047,347
82,775 Kia Motors Corporation 517,571
11,670 Korea Electric Power Corporation 361,765
24,920 Korea Telecom Corporation 3,928,384
63,555 L.G. Chemical, Ltd. 2,009,357
17,800 LG Electronics 736,768
6,067 Samsung Electronics Company 1,421,243
12,490 Shinsegae Department Store Company 631,375
60,680 SK Corporation 1,838,302
555 SK Telecom Company, Ltd. 1,989,300
------------
17,486,793
------------
TAIWAN - 10.4%
40,139 Accton Technology Corporation, GDR+ 293,015
265,000 Acer Peripherals, Inc. 1,097,658
398,000 Advanced Semiconductor Engineering, Inc.+ 1,420,296
215,000 Arima Computer Corporation+ 729,568
403,000 D-Link Corporation 873,156
529,650 Far Eastern Textile, Ltd. 1,265,692
1,112,800 Formosa Chemicals & Fiber Corporation 1,404,075
131,200 Hon Hai Precision Industry Company, Ltd. 978,200
903,000 Nan Ya Plastic Corporation 1,985,248
489,000 Polaris Securities Company, Ltd. 420,679
386,220 Siliconware Precision Industries Company+ 984,470
295,300 Synnex Technology International Corporation 1,938,244
190,000 Systex Corporation+ 1,295,523
1,184,000 Taiwan Cement Corporation 1,222,291
1,107,680 Taishin International Bank 621,162
202,000 Taiwan Semiconductor Manufacturing Company+ 1,074,845
606,750 United Microelectronics Corporation, Ltd. 2,165,238
------------
19,769,360
------------
THAILAND - #2.8#%
62,000 Advanced Info Service Public Company, Ltd. 1,040,329
87,990 Delta Electronics Thai (F)@ 1,046,582
62,500 Siam Cement Company, Ltd. (F) 2,077,526
972,000 TelecomAsia Corporation Public Company, Ltd.+ 1,264,516
------------
5,428,953
------------
TURKEY - 10.9%
36,000,000 Alarko Holding AS 2,057,522
6,328,000 Alcatel Teletas Telekomunikasyon Endustri
ve Ticaret AS 1,400,000
13,500,000 Arcelik AS+ 883,573
29,136,000 Beko Elektronik AS 765,465
150,734,000 Dogan Sirketler Grubu Holding AS 4,446,431
41,557,000 Eregli Demir Ve Celik Fabrikalari T.A.S. 1,723,880
40,000,000 Haci Omer Sabanci Holding AS 2,323,009
13,000,000 Ihlas Holding AS 970,686
10,000,000 Koc Holding AS 1,843,658
4,700,000 Petrol Ofisi AS 1,104,812
125,310,000 Tofas Turk Otomobil Fabrikasi AS 1,524,790
63,973,000 Turk Sise ve Cam Fabrikalari AS 1,710,193
------------
20,754,019
------------
VENEZUELA - 0.3%
1,233,840 La Electricidad de Caracus 389,884
11,161,172 Sudamtex de Venezuela, Class A@ 43,440
1,600,006 Venepal SA, Class A@ 19,730
------------
453,054
------------
TOTAL COMMON STOCKS (Cost $130,440,207) 178,164,061
------------
PREFERRED STOCKS -- 4.2%
BRAZIL - 4.2%
1,135,000 Itausa-Investimentos Itau SA 1,174,896
61,359,556 Lojas Americanas SA 237,762
5,922,000 Petroleo Brasileiro SA 1,507,955
99,059,556 Sao Carlos Empreendimentos+ 225,372
39,700 Tele Norte Leste Participacoes SA, ADR 1,012,350
31,343,000 Telesp Celular SA#, Class B+ 2,481,068
233,000 Usinas Siderurgicas de Minas Gerais SA, Class A 1,263,991
59,900 Vale do Rio Doce, Class B## 332
------------
7,903,726
------------
TOTAL PREFERRED STOCKS (Cost $4,186,786) 7,903,726
------------
WARRANTS -- 0.1% (Cost $207,621)
MALAYSIA - 0.1%
178,600 United Engineers (Malaysia) Berhad $ 137,710
------------
TOTAL INVESTMENTS (Cost $134,834,614*) 97.9% 186,205,497
OTHER ASSETS AND LIABILITIES (Net) 2.1 4,069,704
- --------------------------------------------------------------------------------
NET ASSETS 100.0% $190,275,201
- --------------------------------------------------------------------------------
* Aggregate cost for Federal tax purposes is $134,895,269.
+ Non-income producing security.
# Amount represents less than 0.1%.
## The valuations of these securities have been determined by procedures
established by the Pricing Committee of the Board of Trustees. The cost of
the denoted securities at December 31, 1999 was $1,594,264, with a value of
$1,070,864 representing 0.56% of total net assets.
@ Illiquid Security (unaudited). 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 December 31, 1999 was $5,611,404,
representing 2.95% of total net assets.
Abbreviations:
ADR American Depositary Receipt
CDS Compulsory Demat Shares
GDR Global Depositary Receipt
(F) Foreign Shares
SEE NOTES TO FINANCIAL STATEMENTS.
<PAGE>
PANORAMA TRUST
PICTET GLOBAL EMERGING MARKETS FUND
- --------------------------------------------------------------------------------
PORTFOLIO OF INVESTMENTS (CONTINUED) DECEMBER 31, 1999
AT DECEMBER 31, 1999, SECTOR DIVERSIFICATION OF THE FUND WAS AS FOLLOWS
(UNAUDITED):
% OF NET VALUE
INDUSTRY DIVERSIFICATION ASSETS (NOTE 1)
- --------------------------------------------------------------------------------
COMMON STOCKS:
Telecommunications 14.6% $ 27,829,395
Multi-Industry 8.9 17,020,930
Electrical and Electronics 6.5 12,448,789
Banking 6.4 12,154,333
Construction and Housing 4.9 9,268,233
Utilities - Electric and Gas 4.4 8,280,185
Chemicals 4.2 7,953,738
Financial Services 3.9 7,463,838
Electronic Components and Instruments 3.6 6,934,323
Miscellaneous Materials & Commodities 3.3 6,220,510
Broadcasting and Publishing 3.0 5,791,822
Energy Sources 2.8 5,231,393
Metals - Steel 2.7 5,045,242
Food and Household 2.4 4,590,762
Merchandising 2.4 4,554,068
Forest Products and Paper 2.4 4,539,676
Beverage and Tobacco 2.3 4,340,179
Automobiles 2.3 4,297,418
Transportation - Shipping 2.0 3,796,809
Textiles and Apparel 1.7 3,413,467
Data Processing and Reproduction 1.7 3,316,534
Appliances and Household Durables 1.3 2,398,160
Building Materials and Components 1.1 2,103,081
Metals - Non Ferrous 1.1 2,050,412
Energy Equipment and Services 0.6 1,150,536
Recreation, Other Consumer Goods 0.5 979,810
Insurance 0.5 929,163
Real Estate 0.4 832,412
Transportation - Rail/Road 0.4 806,844
Wholesale & International Trade 0.4 796,101
Leisure & Tourism 0.4 756,710
Health and Personal Care 0.2 442,000
Machinery and Engineering 0.2 302,500
Miscellaneous 0.1 124,688
- --------------------------------------------------------------------------------
TOTAL COMMON STOCKS 93.6 178,164,061
PREFERRED STOCKS 4.2 7,903,726
WARRANTS 0.1 137,710
- --------------------------------------------------------------------------------
TOTAL INVESTMENTS 97.9% 186,205,497
OTHER ASSETS AND LIABILITIES (Net) 2.1 4,069,704
- --------------------------------------------------------------------------------
NET ASSETS 100.0% $190,275,201
- --------------------------------------------------------------------------------
SEE NOTES TO FINANCIAL STATEMENTS.
<PAGE>
Panorama Trust
Pictet International Small Companies Fund
- --------------------------------------------------------------------------------
PORTFOLIO OF INVESTMENTS DECEMBER 31, 1999
- --------------------------------------------------------------------------------
VALUE
SHARES (NOTE 1)
- --------------------------------------------------------------------------------
COMMON STOCKS -- 98.2%
AUSTRALIA - 3.3%
12,000 Austar United Communications, Ltd.+ $ 48,056
10,000 CI Technologies Group, Ltd.+ 55,802
10,000 ERG, Ltd. 56,131
----------
159,989
----------
AUSTRIA - 0.6%
700 Libro AG+ 27,850
----------
BELGIUM - 0.8%
500 Real Software 39,686
----------
CHINA - 1.8%
120,000 TCL International Holdings, Ltd.+ 84,132
----------
DENMARK - 3.2%
6,000 Dansk Lanbrugs Grovvarelska 62,512
500 Vestas Wind Systems A/S+ 88,646
----------
151,158
----------
FINLAND - 4.4%
15,000 JOT Automation Group Oyj 139,756
6,000 PMJ automec Oyj 70,528
----------
210,284
----------
FRANCE - 14.1%
800 A Novo+ 144,722
447 Aubay Technology SA+ 47,275
610 Groupe Focal+ 51,489
500 Infogrames Entertainment SA+ 82,595
600 Marionnaud Parfumeries SA 43,271
1,700 Pierre & Vacances+ 56,507
250 Publicis SA 94,430
800 Solving International SA 99,516
260 UBI Soft Entertainment SA 52,115
----------
671,920
----------
GERMANY - 10.2%
450 Aixtron AG 63,366
575 ce Consumer Electronic AG 75,292
2,000 Evotec Biosystems AG+ 72,321
960 Kinowelt Medien AG 60,918
800 Medion AG+ 71,716
1,500 Procon MultiMedia AG+ 16,771
1,300 Qiagen NV 99,189
250 VCL Film & Medien AG+ 29,462
----------
489,035
----------
HONG KONG - 2.5%
148,000 e-New Media Company, Ltd.+ 72,348
10,000 SmarTone Telecommunications Holdings, Ltd. 48,241
----------
120,589
----------
ITALY - 3.5%
6,000 Gruppo Coin SpA+ 70,105
7,000 Industria Macchine Automatiche 55,348
4,800 Italdesign-Giugiaro SpA+ 42,933
----------
168,386
----------
JAPAN - 15.2%
8,000 Airport Facilities Company, Ltd. 41,108
1,100 Daito Electron Company, Ltd. 26,916
3,000 Focus Systems Corporation 73,407
200 Homac Corporation 5,579
1,000 Japan Care Service Corporation 26,426
5,000 Japan Systems Company, Ltd.+ 29,412
1,000 Kuroda Electric Company, Ltd. 40,325
200 Meitec Corporation 6,362
2,000 Miroku Jyoho Service Company, Ltd. 34,257
1,400 Mycal Card, Inc. 44,534
3,000 Nippon Computer System Company, Ltd. 25,546
8,000 Nippon Konpo Unyu Soko Company, Ltd. 51,679
25,000 Nippon Suisan Kaisha, Ltd. 38,416
1,000 Pasona Softbank, Inc. 79,475
1,000 People Company, Ltd. 78,301
500 Woodland Corporation 17,128
1,000 Yamada Denki Company, Ltd. 108,642
----------
727,513
----------
NETHERLANDS - 4.8%
700 IHC Caland NV 25,559
1,200 Nutreco Holding NV+ 37,047
2,000 Ordina Beheer NV+ 62,852
500 Teleplan International NV+ 102,740
----------
228,198
----------
NORWAY - 1.4%
1,300 NetCom ASA+ 64,874
----------
SINGAPORE - 2.2%
12,000 NatSteel Electronics, Ltd. 63,404
40,000 Wing Tai Holdings, Ltd. 39,628
----------
103,032
----------
SPAIN - 0.8%
6,000 Mecalux SA+ 40,189
----------
SWEDEN - 0.7%
4,000 Q-Med AB+ 31,500
----------
SWITZERLAND - 9.1%
150 Geberit International AG, Registered Shares+ 51,341
350 Logitech International SA, Registered Shares+ 98,913
200 Micronas Semiconductor Holding AG, Registered Shares 54,010
270 Mikron Holdings AG, Registered Shares+ 118,527
200 SEZ Holding AG, Registered Shares 111,914
----------
434,705
----------
United Kingdom - 19.6%
1,000 ARM Holdings Plc+ 67,471
1,000 Baltimore Technologies Plc+ 82,784
18,000 Bell Group Plc## 87,662
600 Eidos Plc+ 52,820
3,000 Fibernet Group Plc+ 85,288
2,200 Filtronic Plc 74,982
7,000 First Technology Plc 61,454
8,000 Holidaybreak Plc 40,706
6,000 Informa Group Plc 58,975
5,000 Kingston Communication (Hull) Plc+ 61,583
8,000 Pace Micro Technology Plc 68,166
4,000 PowderJect Pharmaceuticals Plc+ 53,143
10,000 Saatchi & Saatchi Plc+ 60,170
5,416 Trafficmaster Plc+ 79,830
----------
935,034
----------
TOTAL COMMON STOCKS (Cost $2,923,265) 4,688,074
----------
TOTAL INVESTMENTS (Cost $2,923,265*) 98.2% 4,688,074
OTHER ASSETS AND LIABILITIES (Net) 1.8 87,514
- --------------------------------------------------------------------------------
NET ASSETS 100.0% $4,775,588
- --------------------------------------------------------------------------------
* Aggregate cost for Federal tax purposes# is $2,923,265#.
+ Non-income producing security.
## The valuations of these securities have been determined by procedures
established by the Pricing Committee of the Board of Trustees. The cost of
the denoted securities at December 31, 1999 was $37,227, with a value of
$87,662 representing 1.84% of total net assets.
SEE NOTES TO FINANCIAL STATEMENTS.
<PAGE>
PANORAMA TRUST
PICTET INTERNATIONAL SMALL COMPANIES FUND
- --------------------------------------------------------------------------------
PORTFOLIO OF INVESTMENTS (CONTINUED) DECEMBER 31, 1999
- --------------------------------------------------------------------------------
% OF NET VALUE
INDUSTRY DIVERSIFICATION ASSETS (NOTE 1)
- --------------------------------------------------------------------------------
COMMON STOCKS:
Data Processing and Reproduction 14.5% $ 691,982
Electrical and Electronics 12.2 581,226
Broadcasting and Publishing 10.7 512,846
Health and Personal Care 7.2 345,091
Machinery and Engineering 7.0 331,993
Business and Public Services 6.9 328,817
Telecommunications 6.8 322,838
Electrical Components and Instrumentation 5.6 267,422
Leisure and Tourism 4.8 227,629
Recreation, Other Consumer Goods 4.5 215,245
Merchandising 3.1 146,805
Industrial Components 2.9 139,756
Appliances and Household Durables 2.3 108,642
Multi-Industry 2.2 107,027
Building Materials & Components 1.9 91,530
Real Estate 1.7 80,736
Food and Household Products 1.6 75,463
Financial Services 0.9 44,534
Automobiles 0.9 42,933
Energy Sources 0.5 25,559
- --------------------------------------------------------------------------------
TOTAL COMMON STOCKS 98.2 4,688,074
- --------------------------------------------------------------------------------
TOTAL INVESTMENTS 98.2% 4,688,074
OTHER ASSETS AND LIABILITIES (Net) 1.8 87,514
- --------------------------------------------------------------------------------
NET ASSETS 100.0% $ 4,775,588
- --------------------------------------------------------------------------------
SEE NOTES TO FINANCIAL STATEMENTS.
<PAGE>
PANORAMA TRUST
PICTET EASTERN EUROPEAN FUND
- --------------------------------------------------------------------------------
PORTFOLIO OF INVESTMENTS DECEMBER 31, 1999
- --------------------------------------------------------------------------------
VALUE
SHARES (NOTE 1)
- --------------------------------------------------------------------------------
COMMON STOCKS -- 100.0%
CROATIA - 2.5%
2,800 Pliva d.d., GDR, Registered Shares $ 36,470
1,000 Zagrebacka Banka, GDR, Registered Shares 11,925
----------
48,395
----------
CZECH REPUBLIC - 11.7%
5,500 Ceske Energeticke Zavody AS+ 13,594
800 Ceske Radiokomunikace, GDR+ 29,200
6,500 Ceska Sporitelna AS+ 29,754
3,400 Inzenyrske Prumyslove Stavby AS 14,377
7,999 Komercni Banka, AS, GDR+ 42,595
6,000 SPT Telecom AS+ 96,858
----------
226,378
----------
ESTONIA - 1.0%
900 Estonian Telecom Ltd., GDR 18,540
----------
HUNGARY - 30.2%
1,000 BorsodChem RT 39,825
1,200 Demasz RT, GDR 18,300
1,000 Gedeon Richter RT, GDR 65,625
100 Gedeon Richter, Sponsored GDR 6,550
4,200 MATAV RT, Sponsored ADR, Series B+ 151,200
5,500 Mol Magyar Olaj-es Gazipari RT, GDR 113,850
900 North American Bus Industries RT 18,854
1,400 OTP Bank RT, GDR 81,375
1,600 Pannonplast RT 39,462
900 RABA RT 8,342
2,100 Tisza Vegyi Kombinat RT 40,425
----------
583,808
----------
POLAND - 30.4%
1,800 Agora SA, GDR+ 26,775
7,000 Bank Polska Kasa Opieke SA, GDR+ 90,907
1,400 Bank Rozwoju Eksportu SA 44,353
8,200 Elektrim SA 81,306
4,350 KGHM Polska Miedz SA, GDR 58,725
900 Netia Holdings SA, ADR+ 15,863
700 OPTIMUS SA, Registered Shares 13,272
2,000 Orbis SA, GDR 17,500
800 Polski Koncern Naftowy SA, GDR+ 10,060
2,850 Prokom Software SA 44,317
1,000 Przedsiebiorstwo Farmaceutyczne JELFA SA 8,488
460 Softbank SA, GDR 15,928
22,578 Telekomunikacja Polska, GDR, Series A 146,757
1,050 Zaklady Metali Lekkich Kety+ 14,017
----------
588,268
----------
RUSSIA - 24.2%
4,800 AO Tatneft, ADR 45,600
2,230 LUKOil Holdings, Sponsored ADR+ 90,036
11,200 Mosenergo, Sponsored ADR 39,480
6,500 Norilsk Nickel+ 45,500
11,500 Rostelecom+ 24,725
7,800 Surgutneftegaz, Sponsored ADR 109,200
9,000 Unified Energy Systems, GDR 77,625
800 Vimpel Communications, Sponsored ADR 35,700
----------
467,866
----------
TOTAL COMMON STOCKS (Cost $1,704,250) 1,933,255
----------
TOTAL INVESTMENTS (Cost $1,704,250*) 100.0% 1,933,255
OTHER ASSETS AND LIABILITIES (Net) (0.0) (360)
- --------------------------------------------------------------------------------
NET ASSETS 100.0% $1,932,895
- --------------------------------------------------------------------------------
* Aggregate cost for Federal tax purposes is $1,736,106.
+ Non-income producing security.
Abbreviations:
ADR American Depositary Receipt
GDR Global Depositary Receipt
SEE NOTES TO FINANCIAL STATEMENTS.
<PAGE>
PANORAMA TRUST
PICTET EASTERN EUROPEAN FUND
- --------------------------------------------------------------------------------
PORTFOLIO OF INVESTMENTS (CONTINUED) DECEMBER 31, 1999
- --------------------------------------------------------------------------------
AT DECEMBER 31, 1999, SECTOR DIVERSIFICATION OF THE FUND WAS AS FOLLOWS
(UNAUDITED)#:
% OF NET VALUE
INDUSTRY DIVERSIFICATION ASSETS (NOTE 1)
- --------------------------------------------------------------------------------
COMMON STOCKS:
Telecommunications 26.8% $ 518,843
Energy Sources 20.6 398,166
Banking 15.6 300,909
Utilities - Electrical and Gas 6.2 119,579
Metals - Non Ferrous 6.1 118,242
Health and Personal Care 6.1 117,133
Electronic Component and Equipment 4.2 81,306
Chemicals 4.1 80,250
Data Processing and Reproduction 3.8 73,517
Building Materials and Components 2.0 39,462
Automobiles 1.4 27,196
Broadcasting and Publishing 1.4 26,775
Leisure and Tourism 0.9 17,500
Construction and Housing 0.8 14,377
- --------------------------------------------------------------------------------
TOTAL COMMON STOCKS 100.0 1,933,255
- --------------------------------------------------------------------------------
TOTAL INVESTMENTS 100.0% 1,933,255
OTHER ASSETS AND LIABILITIES (Net) (0.0) (360)
- --------------------------------------------------------------------------------
NET ASSETS 100.0% $1,932,895
- --------------------------------------------------------------------------------
SEE NOTES TO FINANCIAL STATEMENTS.
<PAGE>
<TABLE>
PANORAMA TRUST
PICTET GLOBAL EMERGING MARKETS FUND
PICTET INTERNATIONAL SMALL COMPANIES FUND
PICTET EASTERN EUROPEAN FUND
- ------------------------------------------------------------------------------------------------------------------------
STATEMENTS OF ASSETS AND LIABILITIES DECEMBER 31, 1999
- ------------------------------------------------------------------------------------------------------------------------
<CAPTION>
PICTET PICTET
GLOBAL INTERNATIONAL PICTET
EMERGING SMALL EASTERN
MARKETS COMPANIES EUROPEAN
FUND FUND FUND
- -------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
ASSETS:
Investments, at value (Cost $134,834,614, $2,923,265 and
$1,704,250, respectively) (Note 1)
See accompanying schedule $186,205,497 $4,688,074 $1,933,255
Cash 4,127,177 113,024 140
Foreign currency (Cost $9,182, $0 and $0, respectively) 9,100 -- --
Receivable for investment securities sold -- 27,706 10,242
Receivable from investment adviser (Note 2) -- 13,803 16,236
Dividends receivable and reclaim receivable 209,518 6,139 1,261
Unamortized organization costs (Note 1) 6,729 278 6,324
Other assets 71,685 1,906 725
- -------------------------------------------------------------------------------------------------------------------------
TOTAL ASSETS 190,629,706 4,850,930 1,968,183
- -------------------------------------------------------------------------------------------------------------------------
LIABILITIES:
Payable for investment securities purchased -- 27,699 --
Investment advisory fee payable (Note 2) 69,258 -- --
Administration fee payable (Note 2) 17,692 442 200
Transfer agent fees payable (Note 2) 3,899 1,107 1,069
Custodian fees payable (Note 2) 77,251 8,591 6,651
Professional fees payable 52,793 28,113 21,071
Printing fees payable 8,200 300 125
Other accrued expenses and payables 125,412 9,090 6,172
- -------------------------------------------------------------------------------------------------------------------------
TOTAL LIABILITIES 354,505 75,342 35,288
- -------------------------------------------------------------------------------------------------------------------------
NET ASSETS $190,275,201 $4,775,588 $1,932,895
- -------------------------------------------------------------------------------------------------------------------------
NET ASSETS CONSIST OF:
Accumulated net investment loss $ (228,533) $ (13,674) $ --
Accumulated net realized gain/(loss) on investments
sold (Note 1) and foreign currency related transactions (48,501,128) 214,874 (643,165)
Net unrealized appreciation of investments
and foreign currency related transactions 51,256,225 1,764,857 229,005
Par value 170,698 4,661 2,180
Paid-in capital in excess of par value (Notes 1 and 4) 187,577,939 2,804,870 2,344,875
- -------------------------------------------------------------------------------------------------------------------------
TOTAL NET ASSETS $190,275,201 $4,775,588 $1,932,895
- -------------------------------------------------------------------------------------------------------------------------
SHARES OF BENEFICIAL INTEREST OUTSTANDING (NOTE 4) 17,069,782 466,116 217,973
- -------------------------------------------------------------------------------------------------------------------------
NET ASSET VALUE:
Net asset value, offering and redemption price per share (Note 4) $11.15 $10.25 $ 8.87
- -------------------------------------------------------------------------------------------------------------------------
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 YEAR ENDED DECEMBER 31, 1999
<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 $237,306, $7,084
and $158, respectively) $ 1,984,527 $ 57,834 $ 10,938
Interest 93,964 1,505 2,807
- -------------------------------------------------------------------------------------------------------------------------
TOTAL INVESTMENT INCOME 2,078,491 59,339 13,745
- -------------------------------------------------------------------------------------------------------------------------
EXPENSES:
Investment advisory fee (Note 2) 1,723,832 50,263 24,313
Administration fee (Note 2) 209,324 8,102 2,574
Accounting fee (Note 2) 55,432 50,000 50,000
Transfer agent fees (Note 2) 34,645 12,000 12,000
Custodian fees (Note 2) 441,302 47,401 40,800
Professional fees 71,873 28,927 21,303
Printing fees 12,526 4,625 4,451
Registration and filing fees 15,914 17,894 17,114
Amortization of organization costs (Note 1) 8,968 252 1,934
Trustees' fees and expenses (Note 2) 29,496 1,142 362
Other 48,807 18,560 12,215
- -------------------------------------------------------------------------------------------------------------------------
TOTAL EXPENSES BEFORE EXPENSE REDUCTIONS 2,652,119 239,166 187,066
- -------------------------------------------------------------------------------------------------------------------------
Fees waived and/or expenses reimbursed by
investment advisor (Note 2) (309,921) (178,842) (154,672)
- -------------------------------------------------------------------------------------------------------------------------
NET EXPENSES 2,342,198 60,324 32,394
NET INVESTMENT LOSS (263,707) (985) (18,649)
- -------------------------------------------------------------------------------------------------------------------------
REALIZED AND UNREALIZED GAIN/(LOSS) ON INVESTMENTS
(Notes 1 and 4):
Net realized gain/(loss) on:
Securities transactions 15,310,834 1,390,777 (108,883)
Foreign currency related transactions (including CPMF tax) (678,580) (23,896) (2,415)
- -------------------------------------------------------------------------------------------------------------------------
Net realized gain/(loss) on investments during the period 14,632,254 1,366,881 (111,298)
- -------------------------------------------------------------------------------------------------------------------------
Change in unrealized appreciation/(depreciation) of:
Securities (Net of taxes of $114,004, $0, $0, respectively) 55,648,758 1,470,552 606,448
Foreign currency related transactions (114,631) 1,722 1,204
- -------------------------------------------------------------------------------------------------------------------------
Net unrealized appreciation of investments during the period 55,534,127 1,472,274 607,652
- -------------------------------------------------------------------------------------------------------------------------
NET REALIZED AND UNREALIZED GAIN ON INVESTMENTS 70,166,381 2,839,155 496,354
- -------------------------------------------------------------------------------------------------------------------------
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS $ 69,902,674 $2,838,170 $ 477,705
SEE NOTES TO FINANCIAL STATEMENTS.
</TABLE>
<PAGE>
<TABLE>
PANORAMA TRUST
PICTET GLOBAL EMERGING MARKETS FUND
- ---------------------------------------------------------------------------------------------------------
STATEMENTS OF CHANGES IN NET ASSETS
- ---------------------------------------------------------------------------------------------------------
<CAPTION>
YEAR ENDED YEAR ENDED
INCREASE/(DECREASE) IN NET ASSETS FROM OPERATIONS: DECEMBER 31, 1999 DECEMBER 31, 1998
- ---------------------------------------------------------------------------------------------------------
<S> <C> <C>
FROM OPERATIONS:
Net investment income/(loss) $ (263,707) $ 645,951
Net realized gain/(loss) on investments during the year 14,632,254 (61,170,138)
Change in unrealized appreciation of investments during
the year 55,534,127 31,037,957
- ---------------------------------------------------------------------------------------------------------
Net increase/(decrease) in net assets resulting from
operations 69,902,674 (29,486,230)
FUND SHARE TRANSACTIONS:
Net increase/(decrease) in net assets from Fund share
transactions (Note 4) 26,010,651 (67,073,603)
- ---------------------------------------------------------------------------------------------------------
Net increase/(decrease) in net assets 95,913,325 (96,559,833)
NET ASSETS:
Beginning of year 94,361,876 190,921,709
- ---------------------------------------------------------------------------------------------------------
End of year (including accumulated net investment loss of
($228,533) and ($183,470), respectively) $190,275,201 $ 94,361,876
SEE NOTES TO FINANCIAL STATEMENTS.
</TABLE>
<PAGE>
<TABLE>
PANORAMA TRUST
PICTET INTERNATIONAL SMALL COMPANIES FUND
- -----------------------------------------------------------------------------------------------------------
STATEMENTS OF CHANGES IN NET ASSETS
- -----------------------------------------------------------------------------------------------------------
<CAPTION>
YEAR ENDED YEAR ENDED
INCREASE IN NET ASSETS FROM OPERATIONS: DECEMBER 31, 1999 DECEMBER 31, 1998
- -----------------------------------------------------------------------------------------------------------
<S> <C> <C>
FROM OPERATIONS:
Net investment income/(loss) $ (985) $ 104,494
Net realized gain on investment during the year 1,366,881 2,368,064
Change in unrealized appreciation of investments
during the year 1,472,274 1,313,688
- -----------------------------------------------------------------------------------------------------------
Net increase in net assets resulting from operations 2,838,170 3,786,246
DISTRIBUTIONS TO SHAREHOLDERS:
Distributions to shareholders from net realized gain
on investments (760,216) (1,857,131)
FUND SHARE TRANSACTIONS:
Net decrease in net assets from Fund share transactions
(Note 4) (3,001,777) (20,002,739)
- -----------------------------------------------------------------------------------------------------------
Net decrease in net assets (923,823) (18,073,624)
NET ASSETS:
Beginning of year 5,699,411 23,773,035
- -----------------------------------------------------------------------------------------------------------
End of year (including accumulated net investment loss
of ($13,674) and ($15,538), respectively) $ 4,775,588 $ 5,699,411
- -----------------------------------------------------------------------------------------------------------
SEE NOTES TO FINANCIAL STATEMENTS.
</TABLE>
<PAGE>
<TABLE>
PANORAMA TRUST
PICTET EASTERN EUROPEAN FUND
- ------------------------------------------------------------------------------------------------------------
STATEMENTS OF CHANGES IN NET ASSETS
- ------------------------------------------------------------------------------------------------------------
<CAPTION>
YEAR ENDED PERIOD ENDED
INCREASE/(DECREASE) IN NET ASSETS FROM OPERATIONS: DECEMBER 31, 1999 DECEMBER 31, 1998*
- ------------------------------------------------------------------------------------------------------------
<S> <C> <C>
FROM OPERATIONS:
Net investment loss $ (18,649) $ (826)
Net realized loss on investment during the period (111,298) (537,188)
Change in unrealized appreciation/(depreciation) of investments
during the period 607,652 (378,647)
- ------------------------------------------------------------------------------------------------------------
Net increase/(decrease) in net assets resulting from operations 477,705 (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) (180,828) 2,569,419
- ------------------------------------------------------------------------------------------------------------
Net increase in net assets 296,877 1,636,018
NET ASSETS:
Beginning of period 1,636,018 --
- ------------------------------------------------------------------------------------------------------------
End of period (including accumulated net investment loss of
$0 and ($2,225), respectively $1,932,895 $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>
YEAR YEAR YEAR YEAR PERIOD
ENDED ENDED ENDED ENDED ENDED
12/31/99 12/31/98 12/31/97 12/31/96(a) 12/31/95*(a)
- ----------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Net asset value, beginning of year $ 6.81 $ 8.87 $10.13 $ 9.51 $10.00
- ----------------------------------------------------------------------------------------------------------------------
Income from investment operations:
Net investment income (.01) 0.04 0.04 0.07 0.02
Net realized and unrealized gain/(loss) on
investments 4.35 (2.10) (1.18) 0.71 (0.49)
- ----------------------------------------------------------------------------------------------------------------------
Total from investment operations 4.34 (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 YEAR $11.15 $ 6.81 $ 8.87 $10.13 $ 9.51
- ----------------------------------------------------------------------------------------------------------------------
Total return++ 63.73% (23.22)% (11.29)% 8.32% (4.72)%
- ----------------------------------------------------------------------------------------------------------------------
Ratios to average net assets/supplemental data:
Net assets, end of year (in 000's) 190,275 $94,362 $190,922 $122,047 $9,623
Ratio of operating expenses to average
net assets 1.70% 1.70% 1.70% 1.70% 1.95%+
Ratio of net investment income#/(loss)# to
average net assets (0.19)% 0.55% 0.32% 0.88% 0.68%+
Ratio of operating expenses to average
net assets without waivers# and# expenses
reimbursed 1.92% 2.00% 1.84% 2.20% 8.39%+
Ratio of net investment income to average
net assets without waivers# and# expenses
reimbursed (0.42)% 0.25% 0.18% 0.38% (5.77)%+
Portfolio turnover rate 126% 123% 77% 48% 5%
- -------------
* Pictet Global Emerging Markets Fund commenced operations on October 4, 1995.
+ Annualized.
++ Total return represents aggregate total return for the period.
(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.
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>
Year Year Year Period
Ended Ended Ended Ended
12/31/99 12/31/98 12/31/97 12/31/96*(a)
- -------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Net asset value, beginning of year $ 6.55 $ 9.24 $10.15 $10.00
- -------------------------------------------------------------------------------------------------------
Income from investment operations:
Net investment income/(loss) (0.02) 0.07+++ 0.08 0.09
Net realized and unrealized gain/(loss)
on investments 5.66 0.41 (0.86) 0.20
- -------------------------------------------------------------------------------------------------------
Total from investment operations 5.64 0.48 (0.78) 0.29
- -------------------------------------------------------------------------------------------------------
Distributions to shareholders:
Distributions from net investment income -- -- (0.13) (0.12)
Distributions from net realized capital gains (1.94) (3.17) -- (0.02)
Distributions from capital -- -- -- (0.00)#
- -------------------------------------------------------------------------------------------------------
Total distributions (1.94) (3.17) (0.13) (0.14)
- -------------------------------------------------------------------------------------------------------
NET ASSET VALUE, END OF YEAR $10.25 $ 6.55 $ 9.24 $10.15
- -------------------------------------------------------------------------------------------------------
Total return++ 86.45% 5.35% (7.68)% 2.85%
- -------------------------------------------------------------------------------------------------------
Ratios to average net assets/supplemental data:
Net assets, end of year (in 000's) $4,776 $5,699 $23,773 $25,743
Ratio of operating expenses to average
net assets 1.20% 1.20% 1.20% 1.20%+
Ratio of net investment income#/(loss) to
average net assets (0.02)% 0.65% 0.82% 1.04%+
Ratio of operating expenses to average
net assets without waivers# and# expenses
reimbursed 4.76% 2.36% 2.20% 2.46%+
Ratio of net investment income#/(loss)# to average
net assets without waivers# and# expenses
reimbursed (3.58)% (0.52)% (0.18)% (0.22)%+
Portfolio turnover rate 166% 132% 90% 53%
- --------------
* Pictet International Small Companies Fund commenced operations on February 7, 1996.
+ Annualized
++ Total return represents aggregate total return for the period.
+++ 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>
PANORAMA TRUST
PICTET EASTERN EUROPEAN FUND
- -----------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS
- -----------------------------------------------------------------------------
For a Fund share outstanding throughout each period.
Year Period
Ended Ended
12/31/99 12/31/98*
- -----------------------------------------------------------------------------
Net asset value, beginning of year $ 6.54 $10.00
- -----------------------------------------------------------------------------
Income from investment operations:
Net investment loss (0.09) 0.00#
Net realized and unrealized gain/(loss)
on investments 2.42 (3.39)
- -----------------------------------------------------------------------------
Total from investment operations 2.33 (3.39)
Distributions to shareholders:
Distributions from net investment income -- (0.07)
- -----------------------------------------------------------------------------
Total distributions -- (0.07)
- -----------------------------------------------------------------------------
NET ASSET VALUE, END OF YEAR $ 8.87 $ 6.54
- -----------------------------------------------------------------------------
Total return++ 35.63% (33.93)%
- -----------------------------------------------------------------------------
Ratios to average net assets/supplemental data:
Net assets, end of year (in 000's) $1,933 $1,636
Ratio of operating expenses
to average net assets 2.00% 2.00%+
Ratio of net investment income/(loss) to
average net assets (1.15)% (0.06)%+
Ratio of operating expenses to average net
assets without waivers and expenses reimbursed 11.54% 9.97%+
Ratio of net investment income/(loss) to
average net assets without waivers and
expenses reimbursed (10.69)% (8.03)%+
Portfolio turnover rate 117% 91%
- ----------
* Pictet Eastern European Fund commenced operations on April 7, 1998.
+ Annualized.
++ Total return represents aggregate Total return for the period.
# Amount represents less than $0.01 per share.
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
- --------------------------------------------------------------------------------
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. Actual results could
differ from those 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 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 other
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.
Permanent differences incurred during the year ended December 31, 1999,
resulting from differences in book and tax accounting have been reclassified at
year end as follows:
<TABLE>
<CAPTION>
Increase/Decrease Increase/Decrease
Decrease Accumulated Accumulated
Paid-in Net Investment Net Realized
Capital Loss Gain/(Loss)
- ---------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
Pictet Global Emerging Markets Fund $(898,564) $218,644 $679,920
Pictet International Small Companies Fund (252) 2,849 (2,597)
Pictet Eastern European Fund (23,289) 20,874 2,415
</TABLE>
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.
From January 23, 1997 through January 22, 1999, Brazil imposed a 0.20%
Contribuc-ao Provisoria sobre Movimentac-ao Financiera ("CPMF") tax that applied
to most debit transactions carried out by financial institutions. Effective
January 23, 1999, the CPMF tax expired and was reinstated on June 17, 1999 for a
period of three years. The tax is assessed at a rate of 0.38% for the initial
year and will drop to 0.30% for the remaining two years. For the fiscal year
ended December 31, 1999, the Global Emerging Markets Fund incurred $32,201 of
such expense.
Organization Costs: Expenses incurred in connection with the organization
of certain 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 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 eight 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%, respectively,
of each Fund's average daily net assets.
Effective December 1, 1999, First Data Investor Services Group, Inc.
("Investor Services Group"), the Funds' Administrator and Transfer Agent, became
a majority-owned subsidiary of PNC Bank Corp. As a result of this transaction,
Investor Services Group is now known as PFPC Inc. ("PFPC"). PFPC, 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, PFPC is entitled to receive
$220,000 per annum from the Trust. In addition, for its services as transfer
agent, PFPC is paid separate compensation.
For the year ended December 31, 1999, Pictet International and PFPC either
waived fees and/or reimbursed expenses as follows:
<TABLE>
<CAPTION>
PICTET
PICTET INTERNATIONAL
PFPC NTERNATIONAL EXPENSES
FEES WAIVED FEES WAIVED REIMBURSED TOTAL
- ---------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Pictet Global Emerging Markets Fund $ -- $309,921 $ -- $309,921
Pictet International Small Companies Fund 52,843 50,263 75,736 178,842
Pictet Eastern European Fund 51,228 24,313 79,131 154,672
- ---------------------------------------------------------------------------------------------------------------------------
</TABLE>
No officer, director or employee of Pictet International, PFPC, 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. Effective
December 1, 1999, Provident Distributors, Inc., Four Falls Corporate Center,
West Conshohocken, Pennsylvania 19428, replaced First Data Distributors, Inc. 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 year
ended December 31, 1999 were as follows:
<TABLE>
<CAPTION>
PURCHASES SALES
- --------------------------------------------------------------------------------------------------------
<S> <C> <C>
Pictet Global Emerging Markets Fund $192,580,529 $167,141,435
Pictet International Small Companies Fund 8,409,759 12,046,316
Pictet Eastern European Fund 1,824,366 1,857,506
</TABLE>
At December 31, 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 $59,578,278 $8,268,050 $51,310,228
Pictet International Small Companies Fund 1,902,988 138,179 1,764,809
Pictet Eastern European Fund 338,657 141,508 197,149
</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>
YEAR ENDED YEAR ENDED
DECEMBER 31, 1999 DECEMBER 31, 1998
SHARES AMOUNT SHARES AMOUNT
- -----------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Pictet Global Emerging Markets Fund:
Sold 3,501,546 $28,421,838 4,881,501 $ 34,840,805
Redeemed (288,897) (2,411,187) (12,555,938) (101,914,408)
- -----------------------------------------------------------------------------------------------------------
Net increase/(decrease) 3,212,649 $26,010,651 (7,674,437) $(67,073,603)
- -----------------------------------------------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
YEAR ENDED YEAR ENDED
DECEMBER 31, 1999 DECEMBER 31, 1998
SHARES AMOUNT SHARES AMOUNT
- -----------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Pictet International Small Companies Fund:
Sold -- $ -- 922,708 $ 10,125,000
Issued as reinvestment of dividends 74,898 760,214 284,836 1,857,130
Redeemed (479,539) (3,761,991) (2,908,938) (31,984,869)
- -----------------------------------------------------------------------------------------------------------
Net decrease (404,641) $(3,001,777) (1,701,394) $(20,002,739)
- -----------------------------------------------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
YEAR ENDED YEAR ENDED
DECEMBER 31, 1999 DECEMBER 31, 1998*
SHARES AMOUNT SHARES AMOUNT
- -----------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Pictet Eastern European Fund:
Sold 49,648 $ 378,319 291,402 $ 2,843,760
Issued as reinvestment of dividends -- -- 2,134 14,129
Redeemed (81,810) (559,147) (43,401) (288,470)
- -----------------------------------------------------------------------------------------------------------
Net increase/(decrease) (32,162) $ (180,828) 250,135 $ 2,569,419
- -----------------------------------------------------------------------------------------------------------
* Pictet Eastern European Fund commenced operations on April 7, 1998.
</TABLE>
At December 31, 1999 Pictet Global Emerging Markets Fund had 5 institutional
shareholders owning 24.46%, 13.60%, 12.45%, 12.29% and 10.46%, respectively, of
the outstanding shares of beneficial interest of the Fund.
At December 31, 1999 Pictet International Small Companies Fund had one
institutional shareholder owning 96.75% of the outstanding shares of beneficial
interest of the Fund.
At December 31, 1999 Pictet Eastern European Fund had one institutional
shareholder and one retail shareholder owning 17.24% and 46.00%,
respectively, 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, 1999, the Funds
elected to defer capital losses and currency losses occurring between November
1, 1999 and December 31, 1999 as follows:
- --------------------------------------------------------------------------------
CAPITAL LOSSES CURRENCY LOSSES
- --------------------------------------------------------------------------------
Pictet Global Emerging Markets Fund $ -- $209,993
Pictet International Small Companies Fund -- 13,674
Pictet Eastern European Fund 29,835 --
Such losses will be treated as arising on the first day of the year ending
December 31, 2000.
7. CAPITAL LOSS CARRYFORWARDS
At December 31, 1999 the following Funds had available for Federal income
tax purposes unused capital losses as follows:
EXPIRING IN 2006 EXPIRING IN 2007
- --------------------------------------------------------------------------------
Pictet Global Emerging Markets Fund $48,459,013 $ --
Pictet Eastern European Fund 521,873 59,601
<PAGE>
PANORAMA TRUST
PICTET GLOBAL EMERGING MARKETS FUND
PICTET INTERNATIONAL SMALL COMPANIES FUND
PICTET EASTERN EUROPEAN FUND
- --------------------------------------------------------------------------------
REPORT OF INDEPENDENT ACCOUNTANTS
- --------------------------------------------------------------------------------
To the Board of Trustees and the Shareholders of Panorama Trust:
In our opinion, the accompanying statements of assets and liabilities,
including the portfolios of investments, and the related statements of
operations and of changes in net assets and the financial highlights present
fairly, in all material respects, the financial position of Pictet Global
Emerging Markets Fund, Pictet International Small Companies Fund and Pictet
Eastern European Fund (constituting Panorama Trust, hereafter referred to as the
"Trust") at December 31, 1999, the results of each of their operations for the
year then ended, and the changes in each of their net assets and the financial
highlights for each of the periods indicated therein, in conformity with
accounting principles generally accepted in the United States. These financial
statements and financial highlights (hereafter referred to as "financial
statements") are the responsibility of the Trust's management; our
responsibility is to express an opinion on these financial statements based on
our audits. We conducted our audits of these financial statements in accordance
with auditing standards generally accepted in the United States, which require
that we plan and perform the audit to obtain reasonable assurance about whether
the financial statements are free of material misstatement. An audit includes
examining, on a test basis, evidence supporting the amounts and disclosures in
the financial statements, assessing the accounting principles used and
significant estimates made by management, and evaluating the overall financial
statement presentation. We believe that our audits, which included confirmation
of securities at December 31, 1999 by correspondence with the custodian and
brokers, provide a reasonable basis for the opinion expressed above.
PricewaterhouseCoopers LLP
2400 Eleven Penn Center
Philadelphia, Pennsylvania
February 11, 2000
<PAGE>
PANORAMA TRUST
PICTET GLOBAL EMERGING MARKETS FUND
PICTET INTERNATIONAL SMALL COMPANIES FUND
PICTET EASTERN EUROPEAN FUND
- --------------------------------------------------------------------------------
TAX INFORMATION (UNAUDITED) DECEMBER 31, 1999
- --------------------------------------------------------------------------------
The amount of long term capital gains paid for the fiscal year ended December
31, 1999 is as follows:
Pictet International Small Companies Fund ........................... $598,060
