LOGO [LOGO OF EXCELSIOR FUNDS]

Exhibit 17(d)

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LOGO
[LOGO OF EXCELSIOR FUNDS]

INTERNATIONAL EQUITY PORTFOLIOS

ANNUAL REPORT

March 31, 2002

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TABLE OF CONTENTS

PAGE
----
LETTER TO SHAREHOLDERS........................................ 1
ADVISER'S INTERNATIONAL EQUITY MARKETS REVIEW................. 2
ADVISER'S INVESTMENT REVIEWS
International Fund......................................... 3
Latin America Fund......................................... 4
Pacific/Asia Fund.......................................... 5
Pan European Fund.......................................... 6
Emerging Markets Fund...................................... 7
STATEMENTS OF ASSETS AND LIABILITIES.......................... 8
STATEMENTS OF OPERATIONS...................................... 9
STATEMENTS OF CHANGES IN NET ASSETS........................... 10
FINANCIAL HIGHLIGHTS -- SELECTED PER SHARE DATA AND RATIOS.... 12
PORTFOLIOS OF INVESTMENTS
International Fund......................................... 14
Latin America Fund......................................... 17
Pacific/Asia Fund.......................................... 19
Pan European Fund.......................................... 22
Emerging Markets Fund...................................... 24
NOTES TO FINANCIAL STATEMENTS................................. 27
REPORT OF ERNST & YOUNG LLP, INDEPENDENT AUDITORS............. 36
DIRECTORS/TRUSTEES AND OFFICERS OF THE EXCELSIOR FUNDS COMPLEX 37
VOTING RESULTS OF SPECIAL MEETINGS OF SHAREHOLDERS............ 41
FEDERAL TAX INFORMATION....................................... 42

For shareholder account information, current price and yield quotations, or to
make an initial purchase or obtain a prospectus, call the appropriate telephone
number listed below:

.. Initial Purchase and Prospectus Information and Shareholder Services
0-000-000-0000 (From overseas, call 000-000-0000)
.. Current Price and Yield Information 0-000-000-0000
.. Internet Address: xxxx://xxx.xxxxxxxxxxxxxx.xxx

This report must be preceded or accompanied by a current prospectus.

Prospectuses containing more complete information including charges and
expenses regarding Excelsior Funds, Inc. and Excelsior Tax-Exempt Funds, Inc.
may be obtained by contacting the Funds at 0-000-000-0000.

Investors should read the current prospectus carefully prior to investing or
sending money.

Excelsior Funds, Inc. and Excelsior Tax-Exempt Funds, Inc. are distributed by
Edgewood Services, Inc.

You may write to Excelsior Funds, Inc. and Excelsior Tax-Exempt Funds, Inc. at
the following address:

Excelsior Funds
P.O. Box 8529
Boston, MA 02266-8529

SHARES IN THE FUNDS ARE NOT DEPOSITS OR OBLIGATIONS OF, OR GUARANTEED OR
ENDORSED BY, UNITED STATES TRUST COMPANY OF NEW YORK, U.S. TRUST COMPANY, THEIR
PARENT AND AFFILIATES AND SHARES ARE NOT INSURED BY THE FEDERAL DEPOSIT
INSURANCE CORPORATION, THE FEDERAL RESERVE BOARD, OR ANY OTHER AGENCY.
INVESTMENTS IN THE FUNDS INVOLVE INVESTMENT RISKS, INCLUDING POSSIBLE LOSS OF
PRINCIPAL. FUND SHARES ARE NOT INSURED OR GUARANTEED BY THE U.S. GOVERNMENT.

LETTER TO SHAREHOLDERS
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Dear Shareholder:

For each of us, our nation, our markets and the world economy the last year
proved to be, perhaps, one of the most challenging in several decades.

Prior to the tragic events of September 11, modest market gains during the
first fiscal quarter were already eroding, despite two rate cuts by the Federal
Reserve. This was due to a seemingly faltering economy and concerns about
corporate profits. When the markets re-opened, all the major domestic and
international equity market indices fell precipitously, before eventually
stabilizing. Our nation, and the financial markets, demonstrated remarkable
resilience during the ensuing months. The Federal Reserve cut rates to
historically low levels, providing a lift to the fixed-income markets. Consumer
confidence remained remarkably steady and the equity markets bounced back,
despite the instigation of military action in Afghanistan and revelations of
questionable accounting practices at Enron and other major corporations. The
latter issue dampened investor confidence in corporate earnings reports as the
March 2002 fiscal quarter closed on a flat note.

While the prospects for the U.S. economy seem to be brightening, the world
we live in has changed dramatically. As we adapt to the uncertainties of this
new environment, we must also re-think our financial needs and objectives. Now,
perhaps more than ever, diversification will play a critical role in achieving
your investment goals.

As always, we appreciate your confidence in selecting Excelsior to fulfill
your investment needs. We remain committed to providing you with first-class
investment products and are confident that the broad array of domestic and
international equity as well as taxable and tax-exempt fixed-income funds will
help you meet your financial objectives.

Sincerely,

LOGO
/s/(less than)/TC Xxxxxxx X. Xxxxxxxxxx
Xxxxxxx X. Xxxxxxxxxx
President

EXCELSIOR FUNDS, INC.
ADVISER'S INTERNATIONAL EQUITY MARKETS REVIEW

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Responding to Fed interest rate cuts in the U.S. and led by the Nasdaq,
global markets staged a broad rally in April and May, the first two months of
fiscal 2002, with a renewed correction beginning in June. The fringe areas of
the world benefited the most from the rising tide of liquidity. China, Russia,
South Korea and Mexico were the strongest performers in the period. Although
many international economies had followed the U.S. into a slowdown, their
bubble was less inflated, their deceleration consequently less rapid.
International markets declined in the second fiscal quarter. The tragic events
of September 11 caused an immediate downward twist to the global economy.
Coordinated interest rate cuts and large liquidity additions by the global
central banks helped stabilize the markets and bring about a more V-shaped
synchronized global recovery than would otherwise have been the case. Japan was
still headed into recession, hurt by Xxx strength, putting pressure on the rest
of Asia. Only China held up well and remained the highest-growth economy in the
region. Argentina's situation was precarious once again, and growth slowed in
Brazil and Mexico as well.

Europe began to show signs of recovery in the third fiscal period, spurred
on by hopes of further interest rate cuts. Japan was still headed for
recession, the Yen weakened further, and reforms were slow in coming. An
improving domestic economic environment helped Russia stay current on
international debt payments. China's outlook was enhanced by the pending
recognition of World Trade Organization membership. Latin America performed
well, despite a host of problems including Argentine debt default, falling oil
prices and a slowing U.S. economy.

International markets weakened during the first half of the fourth fiscal
quarter and then rallied to end slightly up for the full period, outperforming
the U.S. market. This was mainly due to strong performance in Japan, which came
in response to the annual "price keeping operation" prior to that country's
fiscal year end. Thanks to the surge in global liquidity, emerging
markets--e.g., Russia, Korea and Thailand--were top performers worldwide.
Non-Japan Asia was the earliest to benefit from a U.S. recovery, while Europe
lagged by about a quarter. European business confidence improved nicely, with
one prominent German indicator of confidence exceeding expectations for the
fourth consecutive month and rising to its highest level in a year.

EXCELSIOR FUNDS, INC.
INTERNATIONAL FUND
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For the twelve months ended March 31, 2002, the Fund realized a total return of
-12.25%* as compared with -8.50%** for the MSCI EAFE Index and -5.79%*** for
the MSCI ACWI Free ex USA Index. Responding to the Fed's rate cuts, global
markets staged a rally in April and May, only to correct in June. China,
Russia, South Korea and Mexico were the strongest performers. The Fund's
large-cap bias hurt performance as small and mid-caps pulled ahead during the
quarter. Market weakness continued into the fiscal second quarter as the events
of September 11 caused a downward twist to the global economy. Our defensive
positioning--overweight health care, consumer staples and energy--did help
performance, but weakness in the Fund's large insurance holdings hurt. The
fiscal third quarter saw coordinated rate cuts, liquidity additions and higher
government spending--all of which helped economies toward recovery. Our
positioning continued to be defensive, partially hedged, and very underweight
Japan. In the final quarter, international markets weakened initially and then
rallied to end slightly up for the full quarter, outperforming the US market.
This was mainly due to strong performance in Japan (which had a temporary
negative impact on Fund performance), in response to the annual pre-year end
"price keeping operation." Thanks to the surge in global liquidity, emerging
markets--Russia, Korea, and Thailand--were the top global performers. More
signs of a broad global recovery began to appear. We maintained a barbell
approach in the portfolio, holding defensives as well as cheap recovery
beneficiaries. At fiscal year end, we were still overweight consumer staples
and health care but were adding stocks in the consumer discretionary, materials
and technology sectors. We were underweight the UK and Japan, and overweight
non-Japan Asia and Continental Europe. We have been finding what we regard as
attractive investment opportunities among small and mid cap stocks.

[CHART]
International Fund+

Average Annual Total Return Ended on 3/31/02*
1 Year 5 Years 10 Years
(12.25) 0.02% 4.25%

International MSCI EAFE MSCI-ACWI Free
Fund Index** ex U.S. Index***

3/31/1992 $10,000 $10,000 $10,000
3/31/1993 $10,485 $11,160 $11,058
3/31/1994 $12,827 $13,671 $13,707
3/31/1995 $12,580 $14,505 $14,305
3/31/1996 $14,186 $16,293 $16,191
3/31/1997 $15,148 $16,531 $16,684
3/31/1998 $18,090 $19,608 $19,399
3/31/1999 $17,515 $20,796 $19,998
3/31/2000 $28,076 $26,014 $25,772
3/31/2001 $17,275 $19,287 $18,860
3/31/2002 $15,159 $17,647 $17,768

Past performance is not predictive of future performance. Investment returns
and principal values will vary and shares may be worth more or less at
redemption than their original cost. International investing is subject to
special risks such as currency fluctuations and differences in accounting and
taxation standards.
The above illustration compares a $10,000 investment made in the Fund and
broad-based indices over the past ten fiscal years. All dividends and capital
gain distributions are reinvested. The Fund's performance takes into account
fees and expenses. The indices do not take into account charges, fees and other
expenses. Further information relating to Fund performance is contained in the
Financial Highlights section of the Prospectus and elsewhere in this report.
--------
* Total return represents the change during the period in a hypothetical
account with dividends reinvested.
** Source: Xxxxxx Xxxxxxx & Co., Incorporated--Xxxxxx Xxxxxxx Capital
International EAFE (Europe, Australia, Asia, Far East) Index is a widely
accepted, unmanaged index composed of a sample of companies from 21
countries representing the developed stock markets outside North America.
***Source: Xxxxxx Xxxxxxx & Co., Incorporated--Xxxxxx Xxxxxxx Capital
International All Country World Index Free ex USA is a widely accepted,
unmanaged index of global stock market performance comprising 47 countries
with developed and emerging markets excluding the United States.
+ The Fund is currently waiving certain fees. Had the Fund not waived fees,
returns would have been lower. Returns do not reflect the deduction of taxes
that a shareholder would pay on Fund distributions or the redemption of
shares.

EXCELSIOR FUNDS, INC.
LATIN AMERICA FUND
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For the twelve months ended March 31, 2002, the Fund realized a total return
of 16.12%* versus 9.84%** for the MSCI EMF Latin American Index. In the fiscal
first quarter, U.S. interest rate cuts helped Mexican performance. Argentina
economic woes continued to be a problem, and Brazil suffered in sympathy. The
Fund outperformed its benchmark index in the quarter, however, in part due to
exceptional performance in financial and telecommunications stocks, both
overweighted sectors for the Fund. Also, foreign corporate activity was the
dominant theme in the region, and although the Fund did not own all of the
targeted stocks, overall performance was boosted by the activity. In the fiscal
second quarter, Latin America suffered from declining economic growth and
rising global uncertainty, all of which was exacerbated after September 11. In
economic terms, Brazil and Mexico showed signs of slowing. Nevertheless,
despite numerous negative factors in the fiscal third quarter--the Argentine
default, falling oil prices, and a slowing U.S. economy--Latin American
equities performed well. In this period, Fund portfolio turnover activity was
low. Geographically, the Fund continued to favor Mexico and Brazil, with a
rising bias toward Brazil. Banks, especially in Brazil, continued to be a
favored sector of the Fund. We feel this positioning worked to the Fund's
advantage. Similar trends continued in the fiscal fourth quarter. Despite
currency devaluations in Argentina and Venezuela, Latin America performed well,
led by Mexico and Brazil--both areas overweighted by the Fund. Mexican
telecommunications stocks were the Fund's star performers. Banks have been a
significant sector for sometime, and we believe the environment continues to
look good, as sound lending practices are pursued.

[CHART]

Latin America Fund+

Average Annual Total Return Ended on 3/31/02*

1 Year 5 Years Since Inception (12/31/92)
16.12% (4.40)% 2.24%

MSCI EMF
Latin America Fund Latin America Index**

12/31/1992 $10,000 $10,000
3/31/1993 $10,071 $10,482
3/31/1994 $13,451 $16,225
3/31/1995 $ 9,353 $11,391
3/31/1996 $11,905 $14,204
3/31/1997 $15,368 $19,028
3/31/1998 $17,528 $21,760
3/31/1999 $ 9,256 $15,904
3/31/2000 $14,303 $23,271
3/31/2001 $10,568 $18,270
3/31/2002 $12,272 $20,068

The above illustration compares a $10,000 investment made in the Fund and a
broad-based index since 12/31/92 (inception date). All dividends and capital
gain distributions are reinvested. The Fund's performance takes into account
fees and expenses. The index does not take into account charges, fees and other
expenses. Further information relating to Fund performance is contained in the
Financial Highlights section of the Prospectus and elsewhere in this report.
--------
* Total return represents the change during the period in a hypothetical
account with dividends reinvested.
** Source: Xxxxxx Xxxxxxx & Co., Incorporated--Xxxxxx Xxxxxxx Capital
International EMF Latin America Index is a widely-accepted, unmanaged index
composed of a sample of companies representative of the market structure of
seven Latin American countries. The Index includes dividends reinvested.
+ The Fund is currently waiving certain fees. Had the Fund not waived fees,
returns would have been lower. Returns do not reflect the deduction of taxes
that a shareholder would pay on Fund distributions or the redemption of
shares.

EXCELSIOR FUNDS, INC.
PACIFIC/ASIA FUND
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For the twelve months ended March 31, 2002, the Fund realized a total return of
1.62%* versus -10.27%** for the MSCI AC Asia Pacific Free Index and ranked 10
out of 71 funds, based on total return, in the Lipper Pacific Region Funds
category*** for the same one year period. The Fund ranked 7 out of 33 funds in
the same Lipper category for the five years ended March 31, 2002, with a
cumulative return of -18.96%.* In the Fund's first fiscal quarter, we added
selectively to our holdings in Japan, as we expected new Prime Minister Xxxxxxx
to enact much-needed structural reforms. We also overweighted China in light of
its essentially juggernaut economy and likely acceptance into the World Trade
Organization. We reduced our technology holdings all around due to the slowing
global demand for cell phones, silicon chips and PCs. In addition, we exited
the Philippines due to uncertain political developments there. We continued on
a similar course in the fiscal second quarter, though more warily, as the
events of September 11 threatened to affect much of Pacific/Asia--not so much
directly but rather through their impact on the U.S. economy. We began to be
concerned with the lack of progress in Japan, and began to reduce our holdings
accordingly. Elsewhere, we continued to overweight China and, incidentally,
India because we felt both countries were largely immune to the overall global
slowdown. The rebound in markets around the world in the fiscal third quarter
allowed us to gain substantial ground after a very poor nine months. Following
a strong run-up in several tech companies, we diversified our technology
exposure. On the downside, Japan continued to confound us, and we remained very
selective in our Japanese purchases, stalling our plan to possibly
market-weight that country. The fourth fiscal quarter saw a continuation of the
rebound in the Asian markets except, notably, for Japan. Although that country
did see its expected year-end rally in anticipation of its fiscal year-end
(March), the rally quickly fizzled on Yen weakness; consequently, we finished
the period dramatically underweight in Japan. Again the Asian star was China,
with Korea also looking quite good, and we sought out worthwhile additions in
both countries.

[CHART]

Pacific/Asia Fund+

Average Annual Total Return Ended on 3/31/02*

1 Year 5 Years Since Inception (12/31/91)
1.62% (4.12%) 2.58%

Pacific/Asia Fund MSCI AC Asia Pacific Free Index**
12/13/1992 $10,000 $10,000
3/31/1993 $10,771 $11,681
3/31/1994 $14,876 $14,742
3/31/1995 $14,000 $15,097
3/31/1996 $16,411 $16,154
3/31/1997 $15,623 $13,214
3/31/1998 $11,318 $10,983
3/31/1999 $11,899 $12,007
3/31/2000 $21,495 $17,150
3/31/2001 $12,461 $11,324
3/31/2002 $12,662 $10,161

Past performance is not predictive of future performance. Investment returns
and principal values will vary and shares may be worth more or less at
redemption than their original cost. International investing is subject to
special risks such as currency fluctuations and differences in accounting and
taxation standards.
The above illustration compares a $10,000 investment made in the Fund and a
broad-based index since 12/31/92 (inception date). All dividends and capital
gain distributions are reinvested. The Fund's performance takes into account
fees and expenses. The index does not take into account charges, fees and other
expenses. Further information relating to Fund performance is contained in the
Financial Highlights section of the Prospectus and elsewhere in this report.
--------
* Total return represents the change during the period in a hypothetical
account with dividends reinvested.
** Source: Xxxxxx Xxxxxxx & Co., Incorporated--The Xxxxxx Xxxxxxx Capital
International All Country Asia Pacific Free Index is a widely-accepted,
unmanaged index composed 10 developed and emerging market countries: China
Free, Hong Kong, Japan, Indonesia, Korea, Malaysia, Philippines, Singapore,
Taiwan and Thailand. The Index aims to capture 85% of the free float
adjusted market capitalization in each industry group, in each country, for
those securities not subject to foreign ownership restrictions. The Index
includes dividends reinvested. Beginning with this report, we are now
comparing the Fund's performance to the MSCI AC Asia Pacific Free Index, as
the MSCI AC Asia Pacific Index has been discontinued. This Index fairly
represents the Fund's investment universe.
*** Source: Lipper Analytical Services, Inc.--Lipper is an independent mutual
fund performance monitor.
+ The Fund is currently waiving certain fees. Had the Fund not waived fees,
returns would have been lower. Returns do not reflect the deduction of taxes
that a shareholder would pay on Fund distributions or the redemption of
shares.

EXCELSIOR FUNDS, INC.
PAN EUROPEAN FUND
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For the twelve months ended March 31, 2002, the Fund realized a total return
of - 8.26%* versus - 5.26%** for the MSCI Europe Index. During the fiscal first
half, European markets drifted downward initially, given worsening economic
conditions, and then plunged in the wake of September 11. Not surprisingly,
defensive sectors declined least (tobacco, pharmaceuticals, energy), as
technology, capital goods, media and, not surprisingly, tourism and leisure
suffered from fears of declines in investment and consumer spending. In this
period, Fund performance was negatively impacted by exposure to insurance
groups, although overweight positions in energy and defense did help. The
fiscal third quarter saw European markets rebound, however, on expectations
that the economies had bottomed. Accordingly, growth-oriented technology, media
and economically sensitive sectors led the market higher, while defensives
lagged. Fund performance was helped by overweight positions in energy and
capital goods, and by relative underweights in defensive areas such as
pharmaceuticals, food and utilities. The start of the fiscal fourth quarter saw
a pause in the up trend, likely due to the Enron scandal. By mid-January,
however, ongoing positive economic signals turned markets around. The
best-performing areas were industrial and manufacturing-oriented. Energy was
also strong. Our investment strategy proved effective, as we had earlier
positioned the Fund for anticipated economic recovery. We continue to favor
companies that we feel benefit from economic recovery. We also are finding
higher growth at lower valuations in small/mid-cap companies, and expect these
stocks will continue to outperform the broader market.

CHART

Pan European Fund+

Average Annual Total Returns Ended on 3/31/02*
1 Year 5 Years Since Inception (12/31/92)
(8.26)% 1.46% 7.15%

Pan European Fund MSCI Europe Index**
3/31/1992 $10,000 $10,000
3/31/1993 $10,486 $10,652
3/31/1994 $11,540 $12,733
3/31/1995 $12,039 $14,038
3/31/1996 $14,237 $16,678
3/31/1997 $17,619 $20,422
3/31/1998 $24,318 $29,001
3/31/1999 $22,168 $30,329
3/31/2000 $31,650 $35,937
3/31/2001 $20,645 $27,783
3/31/2002 $18,940 $26,322

The above illustration compares a $10,000 investment made in the Fund and a
broad-based index since 12/31/92 (inception date). All dividends and capital
gain distributions are reinvested. The Fund's performance takes into account
fees and expenses. The index does not take into account charges, fees and other
expenses. Further information relating to Fund performance is contained in the
Financial Highlights section of the Prospectus and elsewhere in this report.
--------
* Total return represents the change during the period in a hypothetical
account with dividends reinvested.
** Source: Xxxxxx Xxxxxxx & Co., Incorporated--Xxxxxx Xxxxxxx Capital
International Europe Index is a widely accepted, unmanaged index composed of
a sample of companies representative of the market structure of 15 European
countries. The Index includes dividends reinvested.
+ The Fund is currently waiving certain fees. Had the Fund not waived fees,
returns would have been lower. Returns do not reflect the deduction of taxes
that a shareholder would pay on Fund distributions or the redemption of
shares.

EXCELSIOR FUNDS, INC.
EMERGING MARKETS FUND
--------------------------------------------------------------------------------

For the twelve months ended March 31, 2002, the Fund realized a total return of
12.16%* versus 14.94%** for the MSCI EMF (Emerging Markets Free) Index. In the
fiscal first quarter, returns were driven by strong performance in Russia,
China, and the Latin American banks--all areas of overweight for the Fund.
Heading into the fiscal second quarter, emerging markets suffered from rising
risk aversion after September 11. All regions were negatively influenced by a
slowdown in the world economy and rising uncertainty. Fund performance was
impacted accordingly, and we believed temporarily, and so our strategy and
overweights remained intact. In the fiscal third quarter, conditions continued
to improve. From a country standpoint, the Fund's main overweights were Brazil,
China, and Russia. All three performed well. From a sector standpoint, exposure
to Asian banks was increased. In Latin America, banks were added too. In the
fiscal fourth quarter, bucking historical trends, emerging markets performed
well in a time of high-profile currency devaluations in Argentina and
Venezuela. The negative ramifications were countered by strength in Asia and
markets like Russia, which were besieged with similar problems three years ago.
Korea was a top performer. Russia performed well. Not only did it benefit from
stable oil prices, but reform continued to go forward. Although the Fund
increased in value, it under performed the index during the three-month period.
This was due mainly to an underweight position in Korea; we believed--and
continue to believe--there are better long-term opportunities elsewhere. We
remain satisfied with the structure of the Fund and are optimistic regarding
emerging market prospects going forward.

[CHART]

Emerging Markets Fund+

Average Annual Total Return Ended on 3/31/02*

1 Year Since Inception (1/2/98)
12.16% (7.25)%

Emerging MSCI EMF
Markets Fund (Emerging Markets Free)
Index**
1/2/1998 $10,000 $10,000
3/31/1998 $10,000 $10,620
9/30/1998 $ 5,340 $ 6,328
3/31/1999 $ 5,857 $ 8,395
9/30/1999 $ 6,161 $ 9,906
3/31/2000 $10,705 $12,727
9/30/2000 $ 7,675 $ 9,947
3/31/2001 $ 6,452 $ 9,947
9/30/2001 $ 5,136 $ 6,649
3/31/2002 $ 7,237 $ 9,372

The above illustration compares a $10,000 investment made in the Fund and a
broad-based index since 1/2/98 (inception date). For comparative purposes, the
value of the index on 12/31/97 is used as the beginning value on 1/2/98. All
dividends and capital gain distributions are reinvested. The Fund's performance
takes into account fees and expenses. The index does not take into account
charges, fees and other expenses. Further information relating to Fund
performance is contained in the Financial Highlights section of the Prospectus
and elsewhere in this report.
--------
* Total return represents the change during the period in a hypothetical
account with dividends reinvested.
** Source: Xxxxxx Xxxxxxx & Co., Incorporated--Xxxxxx Xxxxxxx Capital
International EMF (Emerging Markets Free) Index is a widely-accepted,
unmanaged index composed of a sample of companies representative of the
market structure of 26 global emerging market countries. The Index includes
dividends reinvested.
+ The Fund is currently waiving certain fees. Had the Fund not waived fees,
returns would have been lower. Returns do not reflect the deduction of taxes
that a shareholder would pay on Fund distributions or the redemption of
shares.

Excelsior Funds, Inc.
Statements of Assets and Liabilities
March 31, 2002

Pan Emerging
International Latin Pacific/Asia European Markets
Fund America Fund Fund Fund Fund
------------- ------------ ------------ ------------ -----------

ASSETS:
Investments, at cost-see accompanying
portfolios.............................. $186,901,994 $ 15,262,333 $ 22,124,939 $ 63,058,664 $22,567,403
============ ============ ============ ============ ===========
Investments, at value (Note 1).......... $162,765,025 $ 13,305,009 $ 22,595,342 $ 56,806,826 $22,417,124
Repurchase Agreements, at value
(Note 1)................................ 2,857,000 660,000 394,000 167,000 873,000
Foreign currency (cost $491,978, $0,
$151,330, $0 and $1,151,
respectively)........................... 492,776 -- 152,274 -- 1,148
Cash.................................... 24,108 2,645 7,158 262,810 1,425
Dividends receivable.................... 376,894 88,178 92,447 120,516 95,208
Interest receivable..................... 502 116 69 29 153
Receivable for investments sold......... 1,034,580 -- 376,978 284,910 --
Receivable for fund shares sold......... 359,187 17,381 7,597 300,557 2,089
Withholding tax receivable.............. 304,250 -- 4,376 168,866 462
Unrealized on forward foreign
currency exchange contracts (Note
1)...................................... 991,842 -- 312,592 -- --
Unamortized organizational costs
(Note 6)................................ -- -- -- -- 6,259
Other assets............................ 192,939 -- -- -- --
------------ ------------ ------------ ------------ -----------
Total Assets............................ 169,399,103 14,073,329 23,942,833 58,111,514 23,396,868
LIABILITIES:
Payable for investments purchased....... 1,002,045 -- 276,662 -- 446,134
Payable for fund shares redeemed........ 869,176 3,325 -- 37,512 --
Investment advisory fees payable
(Note 2)................................ -- 35,873 50,115 45,426 42,450
Administration fees payable (Note
2)...................................... 24,580 1,936 5,012 2,818 3,036
Administrative servicing fees payable
(Note 2)................................ 2,861 979 1,206 2,423 39
Directors' fees payable (Note 2)........ 188 12 12 30 28
Foreign taxes payable................... 103,177 -- 11,014 -- --
Accrued expenses and other
payables................................ 116,689 41,040 58,091 75,060 58,311
------------ ------------ ------------ ------------ -----------
Total Liabilities....................... 2,118,716 83,165 402,112 163,269 549,998
------------ ------------ ------------ ------------ -----------
NET ASSETS............................... $167,280,387 $ 13,990,164 $ 23,540,721 $ 57,948,245 $22,846,870
============ ============ ============ ============ ===========
NET ASSETS consist of:
Undistributed (distribution in excess
of) net investment income............... $ (1,177,801) $ 100,877 $ (81,813) $ 172,084 $ (34,716)
Accumulated net realized loss on
investments and foreign currency
translations............................ (70,440,965) (29,045,988) (29,698,294) (18,336,569) (3,303,580)
Unrealized appreciation/depreciation
of investments and foreign currency
translations............................ (20,386,645) (1,294,694) 1,167,192 (6,083,468) 724,021
Par value (Note 5)...................... 17,161 2,342 3,524 7,126 4,612
Paid-in capital in excess of par
value................................... 259,268,637 44,227,627 52,150,112 82,189,072 25,456,533
------------ ------------ ------------ ------------ -----------
Total Net Assets...................... $167,280,387 $ 13,990,164 $ 23,540,721 $ 57,948,245 $22,846,870
============ ============ ============ ============ ===========
Shares of Common Stock Outstanding
(Note 5)................................ 17,160,667 2,341,623 3,523,771 7,126,035 4,612,272
NET ASSET VALUE PER SHARE................ $ 9.75 $ 5.97 $ 6.68 $ 8.13 $ 4.95
============ ============ ============ ============ ===========

See Notes to Financial Statements

Excelsior Funds, Inc.
Statements of Operations
Year Ended March 31, 2002

Latin Emerging
International America Pacific/Asia Pan European Markets
Fund Fund Fund Fund Fund
------------- ---------- ------------ ------------ ----------

INVESTMENT INCOME:
Dividend Income.............................. $ 3,812,157 $ 682,763 $ 483,766 $ 1,401,259 $ 324,232
Interest income.............................. 260,323 13,758 23,052 47,647 27,378
Less: Foreign taxes withheld................. (285,066) (30,992) (37,227) (84,946) (25,543)
------------ ---------- ----------- ------------ ----------
Total Income............................... 3,787,414 665,529 469,591 1,363,960 326,067
EXPENSES:
Investment advisory fees (Note 2)............ 2,269,331 160,869 263,436 818,219 172,258
Administration fees (Note 2)................. 453,869 32,174 52,688 163,644 27,562
Custodian fees............................... 292,868 28,321 47,310 100,356 15,522
Administrative servicing fees (Note 2)....... 287,630 31,967 31,734 71,733 18,240
Shareholder servicing agent fees (Note
2)........................................... 42,484 13,071 18,881 30,744 3,082
Registration and filing fees................. 41,418 16,570 10,835 24,135 13,940
Shareholder reports.......................... 28,152 3,248 17,512 11,964 4,285
Legal and audit fees......................... 25,345 1,533 10,912 8,837 1,290
Directors' fees and expenses (Note 2)........ 6,744 259 1,010 2,658 584
Amortization of organization costs
(Note 6)..................................... -- -- -- -- 8,182
Miscellaneous expenses....................... 13,568 5,401 4,389 5,147 1,131
------------ ---------- ----------- ------------ ----------
Total Expenses............................. 3,461,409 293,413 458,707 1,237,437 266,076
Fees waived and reimbursed by:
Investment adviser (Note 2)................ (603,518) (32,987) (73,600) (71,733) (42,582)
Administrators (Note 2).................... (68,306) (4,771) (8,092) (24,425) (4,536)
------------ ---------- ----------- ------------ ----------
Net Expenses............................... 2,789,585 255,655 377,015 1,141,279 218,958
------------ ---------- ----------- ------------ ----------
NET INVESTMENT INCOME......................... 997,829 409,874 92,576 222,681 107,109
------------ ---------- ----------- ------------ ----------
REALIZED AND UNREALIZED GAIN
(LOSS) ON INVESTMENTS AND
FOREIGN CURRENCY TRANSACTIONS
(Note 1):
Net realized gain (loss):
Security transactions...................... (69,979,412) 1,733,251 (9,203,803) (18,336,570) (377,297)
Foreign currency transactions.............. (55,807) (12,528) (205,194) (50,597) (85,708)
------------ ---------- ----------- ------------ ----------
Total net realized gain (loss)............... (70,035,219) 1,720,723 (9,408,997) (18,387,167) (463,005)
Change in unrealized appreciation/
depreciation of investments and foreign
currency translations during the year (net
of foreign tax on unrealized appreciation:
$37,350, $0, $11,014, $0 and $0,
respectively)................................ 34,871,786 (58,415) 8,943,082 9,406,884 2,187,148
------------ ---------- ----------- ------------ ----------
Net realized and unrealized gain (loss) on
investments and foreign currency
transactions.................................. (35,163,433) 1,662,308 (465,915) (8,980,283) 1,724,143
------------ ---------- ----------- ------------ ----------
Net increase (decrease) in net assets
resulting from operations..................... $(34,165,604) $2,072,182 $ (373,339) $ (8,757,602) $1,831,252
============ ========== =========== ============ ==========

See Notes to Financial Statements

Excelsior Funds, Inc.
Statements of Changes in Net Assets

Latin Emerging
International America Pacific/Asia Pan European Markets
Fund Fund Fund Fund Fund
------------- ----------- ------------ ------------ -----------

Year Ended March 31, 2002
Net investment income................................. $ 997,829 $ 409,874 $ 92,576 $ 222,681 $ 107,109
Net realized gain (loss) on investments and foreign
currency transactions................................. (70,035,219) 1,720,723 (9,408,997) (18,387,167) (463,005)
Change in unrealized appreciation/
depreciation of investments and foreign currency
translations during the year.......................... 34,871,786 (58,415) 8,943,082 9,406,884 2,187,148
------------- ----------- ------------ ------------ -----------
Net increase (decrease) in net assets resulting from
operations............................................ (34,165,604) 2,072,182 (373,339) (8,757,602) 1,831,252
Distributions to shareholders:
From net investment income........................... (1,493,874) (687,401) (57,409) -- (56,117)
From net realized gain on investments................ (12,822,376) -- -- (6,092,926) --
Increase (decrease) in net assets from fund share
transactions (Note 5)................................. (86,304,673) (9,566,829) (8,023,858) (38,861,190) 8,814,148
------------- ----------- ------------ ------------ -----------
Net increase (decrease) in net assets................. (134,786,527) (8,182,048) (8,454,606) (53,711,718) 10,589,283
NET ASSETS:
Beginning of year.................................... 302,066,914 22,172,212 31,995,327 111,659,963 12,257,587
------------- ----------- ------------ ------------ -----------
End of year (1)...................................... $ 167,280,387 $13,990,164 $ 23,540,721 $ 57,948,245 $22,846,870
============= =========== ============ ============ ===========
--------
(1) Including undistributed (distributions in excess
of) net investment income............................. $ (1,177,801) $ 100,877 $ (81,813) $ 172,084 $ (34,716)
============= =========== ============ ============ ===========
Year Ended March 31, 2001
Net investment income (loss).......................... $ (1,175,572) $ 426,134 $ (386,114) $ (528,673) $ (20,838)
Net realized gain (loss) on investments and foreign
currency transactions................................. 35,231,625 468,713 (8,603,422) 13,664,416 (330,800)
Change in unrealized appreciation/
depreciation of investments and foreign currency
translations during the year.......................... (218,802,260) (7,947,023) (24,256,315) (76,157,781) (6,539,991)
------------- ----------- ------------ ------------ -----------
Net decrease in net assets resulting from
operations............................................ (184,746,207) (7,052,176) (33,245,851) (63,022,038) (6,891,629)
Distributions to shareholders:
From net investment income........................... (2,174,943) -- (2,112,879) (321,395) --
In excess of net investment income................... (1,048,135) -- (245,276) -- --
From net realized gain on investments................ (15,301,894) -- -- (15,950,550) --
Increase (decrease) in net assets from fund share
transactions (Note 5)................................. 31,565,436 5,513,010 (20,935,316) (4,470,367) 1,945,892
------------- ----------- ------------ ------------ -----------
Net decrease in net assets............................ (171,705,743) (1,539,166) (56,539,322) (83,764,350) (4,945,737)
NET ASSETS:
Beginning of year.................................... 473,772,657 23,711,378 88,534,649 195,424,313 17,203,324
------------- ----------- ------------ ------------ -----------
End of year (2)...................................... $ 302,066,914 $22,172,212 $ 31,995,327 $111,659,963 $12,257,587
============= =========== ============ ============ ===========
--------
(2) Including undistributed (distributions in excess
of) net investment income............................. $ (1,048,135) $ 390,932 $ (245,276) $ -- $ --
============= =========== ============ ============ ===========

See Notes to Financial Statements

(THIS PAGE INTENTIONALLY LEFT BLANK)

Excelsior Funds, Inc.
Financial Highlights -- Selected Per Share Data and Ratios

For a Fund share outstanding throughout each period.

Net
Realized
and Dividends Distributions
Net Asset Net Unrealized Total Dividends in Excess From Net
Value, Investment Gain (Loss) From From Net of Net Realized
Beginning Income on Investment Investment Investment Gain on
of Period (Loss) Investments Operations Income Income Investments
--------- ---------- ----------- ---------- ---------- ---------- -------------

INTERNATIONAL FUND -- (7/21/87*)
Year Ended March 31,
1998.......................... $11.34 $ 0.04 $ 2.11 $ 2.15 $(0.02) $(0.04) $(0.31)
1999.......................... 13.00 0.01 (0.42) (0.41) (0.03) (0.04) --
2000.......................... 12.52 (0.03) 7.57 7.54 -- -- (0.04)
2001.......................... 20.02 (0.05) (7.49) (7.54) (0.09) (0.04) (0.60)
2002.......................... 11.75 0.03 (1.43) (1.40) (0.08) -- (0.52)
LATIN AMERICA FUND -- (12/31/92*)
Year Ended March 31,
1998.......................... $ 9.46 $ 0.10 $ 1.22 $ 1.32 $(0.02) -- $(0.16)
1999.......................... 10.60 0.21 (5.29) (5.08) (0.18) -- --
2000.......................... 4.77 0.03 2.53 2.56 (0.13) -- --
2001.......................... 7.20 0.10 (1.98) (1.88) -- -- --
2002.......................... 5.32 0.14 0.70 0.84 (0.19) -- --
PACIFIC/ASIA FUND -- (12/31/92*)
Year Ended March 31,
1998.......................... $ 9.09 $ 0.01 $(2.52) $(2.51) $(0.01) $(0.05) --
1999.......................... 6.52 -- (5) 0.29 0.29 (0.09) (0.11) --
2000.......................... 6.61 0.02 5.26 5.28 -- -- --
2001.......................... 11.89 (0.06)(5) (4.88)(5) (4.94) (0.32) (0.04) --
2002.......................... 6.59 0.02(5) 0.09(5)(7) 0.11 (0.02) -- --
PAN EUROPEAN FUND -- (12/31/92*)
Year Ended March 31,
1998.......................... $10.94 $(0.01) $ 4.01 $ 4.00 -- -- $(0.81)
1999.......................... 14.13 -- (1.26) (1.26) -- -- (0.48)
2000.......................... 12.39 (0.03) 4.90 4.87 -- -- (1.30)
2001.......................... 15.96 (0.05) (5.12) (5.17) $(0.03) -- (1.32)
2002.......................... 9.44 0.02 (0.77) (0.75) -- -- (0.56)
EMERGING MARKETS FUND -- (01/02/98*)
Period Ended March 31, 1998 $ 7.00 -- -- -- -- -- --
Year Ended March 31,
1999.......................... 7.00 $ 0.07 $(2.95) $(2.88) $(0.08) -- --
2000.......................... 4.04 (0.02) 3.35 3.33 (0.02) -- --
2001.......................... 7.35 (0.01) (2.91) (2.92) -- -- --
2002.......................... 4.43 0.01 0.53 0.54 (0.02) -- --

* Commencement of operations
(1)Annualized
(2)Not Annualized
(3)Expense ratios before waiver of fees and reimbursement of expenses (if any)
by adviser and administrators.
(4)The annualized ratio of net operating expenses to average net assets,
excluding foreign investment taxes, is 1.65%.
(5)For comparative purposes per share amounts are based on average shares
outstanding.
(6)Total returns do not reflect the 2% fee accrued on redemption of shares
which was implemented effective June 1, 2000.
(7)The amount shown for a share outstanding throughout the period does not
accord with the aggregate net losses on investments for that period because
of the sales and repurchases of Fund shares in relation to fluctuating
market value of the investments of the Fund.

See Notes to Financial Statements

Ratio of Ratio of
Net Gross Ratio of
Operating Operating Net
Net Net Expenses Expenses Investment
Asset Assets, to to Income Fee
Distributions in Excess of Value, End of Average Average (Loss) to Portfolio Waivers
Net Realized Gain on Total End of Total Period Net Net Average Turnover (Note
Investments Distributions Period Return(6) (000's) Assets Assets(3) Net Assets Rate 2)
-------------------------- ------------- ------ --------- -------- --------- --------- ---------- --------- -------

$(0.12) $(0.49) $13.00 19.42% $204,889 1.44% 1.52% 0.32% 37% $0.01
-- (0.07) 12.52 (3.18)% 202,083 1.42% 1.52% 0.11% 50% 0.01
-- (0.04) 20.02 60.30% 473,773 1.40% 1.51% (0.36)% 25% 0.01
-- (0.73) 11.75 (38.41)% 302,067 1.41% 1.53% (0.29)% 55% 0.02
-- (0.60) 9.75 (12.25)% 167,280 1.23% 1.53% 0.44% 50% 0.03
-- $(0.18) $10.60 14.05% $ 88,696 1.50% 1.60% 0.88% 77% $0.01
$(0.57) (0.75) 4.77 (47.19)% 14,183 1.55% 1.66% 1.63% 29% 0.01
-- (0.13) 7.20 54.52% 23,711 1.64% 1.75% 0.42% 69% 0.01
-- -- 5.32 (26.11)% 22,172 1.67% 1.92% 2.12% 16% 0.02
-- (0.19) 5.97 16.12% 13,990 1.59% 1.82% 2.55% 7% 0.01
-- $(0.06) $ 6.52 (27.56)% $ 43,808 1.48% 1.57% 0.22% 52% $0.01
-- (0.20) 6.61 5.14% 28,008 1.55% 1.64% 0.01% 78% 0.01
-- -- 11.89 79.88% 88,535 1.49% 1.58% (0.48)% 105% --
-- (0.36) 6.59 (41.79)% 31,995 1.50% 1.68% (0.63)% 75% 0.02
-- (0.02) 6.68 1.62% 23,541 1.43% 1.74% 0.35% 94% 0.02
-- $(0.81) $14.13 38.02% $207,636 1.43% 1.50% (0.13)% 40% $0.01
-- (0.48) 12.39 (8.84)% 157,836 1.43% 1.50% 0.04% 46% 0.01
-- (1.30) 15.96 42.77% 195,424 1.43% 1.50% (0.21)% 46% 0.01
-- (1.35) 9.44 (34.77)% 111,660 1.45% 1.52% (0.34)% 43% 0.01
-- (0.56) 8.13 (8.26)% 57,948 1.39% 1.51% 0.27% 29% 0.01
-- -- $ 7.00 (0.14)%(2) $ 6,535 1.85%(1)(4) 2.74%(1) 2.33%(1) -- --
-- $(0.08) 4.04 (41.21)% 5,411 1.65% 2.48% 1.93% 73% $0.03
-- (0.02) 7.35 82.77% 17,203 1.65% 2.03% (0.60)% 57% 0.01
-- -- 4.43 (39.73)% 12,258 1.65% 2.09% (0.16)% 30% 0.02
-- (0.02) 4.95 12.16% 22,847 1.59% 1.93% 0.78% 31% 0.01

See Notes to Financial Statements

Excelsior Funds, Inc.
Portfolio of Investments March 31, 2002
International Fund

Value
Shares (Note 1)
--------- -----------

COMMON STOCKS -- 94.99%
AUSTRALIA --
2.95%
1,728,930 ERG Ltd............ $ 239,910
58,500 Rio Tinto Ltd...... 1,176,736
528,261 Woolworths Ltd..... 3,518,523
-----------
4,935,169
-----------
AUSTRIA -- 0.31%
21,656 +EMTS Technologie
AG................. 515,067
-----------
CANADA -- 1.17%
218,250 Bombardier, Inc.,
Class B............ 1,963,073
-----------
CHILE -- 0.86%
40,280 Xxxx Xxxxxx Y Xxxx
X.X. ADR........... 1,448,469
-----------
CHINA -- 5.38%
5,331,000 Chaoda Modern
Agriculture
Holdings Ltd....... 1,862,480
26,300 +China Mobile
(Hong Kong) Ltd.
ADR................ 406,335
4,528,600 +China Southern
Airlines Co., Ltd.,
Class H............ 1,495,057
1,280,000 CNOOC Ltd.......... 1,591,836
78,300 Huaneng Power
International, Inc.
ADR................ 2,103,138
3,043,700 People's Food
Holdings Ltd....... 1,543,391
-----------
9,002,237
-----------
FINLAND -- 0.67%
53,100 Nokia Oyj.......... 1,122,441
-----------
FRANCE -- 13.14%
257,500 Alstom............. 3,443,777
46,900 Aventis S.A........ 3,240,512
108,048 Axa................ 2,438,534
27,116 Carrefour S.A...... 1,277,424
109,900 France Telecom
S.A................ 3,367,192
405,300 +Gemplus
International
S.A................ 707,168
33,150 L'OREAL S.A........ 2,450,975
32,702 TotalFinaElf S.A... 5,049,673
-----------
21,975,255
-----------
GERMANY -- 7.84%
38,930 Adidas-Salomon
AG................. 2,784,928
10,865 Allianz AG......... 2,568,708
51,800 Bayerische Hypo-
und Vereinsbank
AG................. 1,884,436
17,979 Muenchener
Rueckversicherungs
AG................. 4,470,191
9,242 SAP AG............. 1,402,913
-----------
13,111,176
-----------
HONG KONG -- 0.73%
1,442,000 Shangri-La Asia
Ltd................ 1,220,185
-----------

Value
Shares (Note 1)
--------- -----------

COMMON STOCKS -- (continued)
INDIA -- 2.64%
85,900 Xx. Xxxxx'x Laboratories
Ltd..................... $ 1,933,278
128,700 Hero Honda Motors
Ltd..................... 880,426
113,800 Housing Development
Finance Corp., Ltd...... 1,597,120
-----------
4,410,824
-----------
IRELAND -- 1.72%
612,505 Anglo Irish Bank Corp.
plc..................... 2,880,143
-----------
ITALY -- 5.46%
159,300 Autogrill S.p.A......... 1,753,843
333,100 ENI S.p.A............... 4,882,020
50,650 Permasteelisa S.p.A..... 826,740
271,500 Saipem S.p.A............ 1,669,839
-----------
9,132,442
-----------
JAPAN -- 10.49%
85,300 Daiichi Pharmaceutical
Co., Ltd................ 1,592,919
19,400 Don Quijote Co., Ltd.... 1,116,852
447,000 Fuji Heavy Industries
Ltd..................... 2,182,133
394,000 Keisei Electric Railway
Co...................... 1,085,072
55,900 Mimasu Semiconductor
Industry Co., Ltd....... 717,018
35,300 Nintendo Co., Ltd....... 5,193,722
112 NTT DoCoMo, Inc......... 304,222
448 +NTT DoCoMo, Inc.
(when issued)........... 1,213,506
50,400 +Sega Corp.............. 897,453
38,500 Shin-Etsu Chemical Co.,
Ltd..................... 1,629,645
81,200 Shionogi & Co., Ltd..... 1,274,350
1,629 +Starbucks Coffee Japan
Ltd..................... 337,391
-----------
17,544,283
-----------
NETHERLANDS -- 4.17%
42,300 +ASML Holding N.V....... 1,066,483
95,000 Koninklijke Ahold
N.V..................... 2,492,970
56,568 Nutreco Holding
N.V..................... 1,848,155
74,871 Wolters Kluwer N.V...... 1,567,619
-----------
6,975,227
-----------
PORTUGAL -- 1.93%
917,072 +Banco Comercial
Portugues S.A........... 3,224,216
-----------
RUSSIA -- 1.22%
35,370 Lukoil Co. ADR.......... 2,043,608
-----------
SINGAPORE -- 2.56%
2,201,800 Sembcorp Logistics
Ltd..................... 2,638,960
200,200 United Overseas Bank
Ltd..................... 1,650,328
-----------
4,289,288
-----------
SOUTH KOREA -- 4.95%
265,800 @Korea Tobacco &
Ginseng Corp. GDR....... 1,754,280
2,125 Lotte Chilsung Beverage
Co...................... 1,108,180

See Notes to Financial Statements

Excelsior Funds, Inc.
Portfolio of Investments March 31, 2002
International Fund -- (continued)

Value
Shares (Note 1)
--------- ------------

COMMON STOCKS -- (continued)
SOUTH KOREA --
(continued)
9,500 +NCSoft Corp......... $ 1,682,430
6,890 Samsung Electronics.. 1,856,268
34,900 Samsung Fire & Marine
Insurance Co., Ltd... 1,880,516
------------
8,281,674
------------
SWEDEN -- 0.69%
271,810 Telefonaktiebolaget
LM Ericsson AB, Class
B.................... 1,149,358
------------
SWITZERLAND -- 7.52%
384 Xxxxx & Spruengli
AG................... 2,201,070
12,100 Nestle S.A.
(Registered)......... 2,690,807
80,280 Novartis AG
(Registered)......... 3,157,642
47,400 Roche Holding AG..... 3,685,070
17,100 +UBS AG
(Registered)......... 841,884
------------
12,576,473
------------
TAIWAN -- 3.07%
1,255,000 +Fubon Financial
Holding Co., Ltd..... 1,233,433
288,000 Hon Hai Precision
Industry Co., Ltd.... 1,341,200
33,621 Hon Hai Precision
Industry Co., Ltd.
GDR.................. 312,003
108,150 +Taiwan Semiconductor
Manufacturing Co.,
Ltd. ADR............. 2,244,112
------------
5,130,748
------------
THAILAND -- 2.40%
175,200 BEC World Public Co.,
Ltd. (Foreign)....... 1,046,691
425,900 Dhipaya Insurance
Public Co., Ltd.
(Foreign)............ 817,157
3,829,000 +Siam Commercial Bank
Public Co., Ltd.
(Foreign)............ 2,155,572
------------
4,019,420
------------
UNITED
KINGDOM -- 13.12%
918,207 BAE Systems plc...... 4,380,215
141,900 Carpetright plc...... 1,311,406
208,626 GlaxoSmithKline plc.. 4,913,760
2,128,016 Invensys plc......... 3,757,565
111,780 Xxxxxxx plc.......... 1,435,756
869,900 Serco Group plc...... 3,790,537
1,281,173 Vodafone Group plc... 2,367,146
------------
21,956,385
------------
TOTAL COMMON
STOCKS
(Cost $180,347,954).. 158,907,161
------------

Value
Shares (Note 1)
---------------- ----------

PREFERRED STOCKS -- 2.31%
GERMANY -- 1.26%
240,900 Prosieben SAT.1
Media AG......... $2,101,611
----------
SOUTH
KOREA -- 1.05%
128,400 Hyundai Motor
Co., Ltd......... 1,756,253
----------
TOTAL
PREFERRED
STOCKS
(Cost
$3,697,040)...... 3,857,864
----------
No. of Rights
----------------
RIGHTS -- 0.00%
BRAZIL -- 0.00%
25,200 ++Cia Vale do Rio
Doce
(Cost $0)........ --
----------
Principal Amount
----------------
REPURCHASE AGREEMENT -- 1.71%
UNITED
STATES -- 1.71%
$2,857,000 #XX Xxxxxx Xxxxx
Securities, Inc.,
Repurchase
Agreement,
1.58%, dated
03/28/02, due
04/01/02, to be
repurchased at
$2,857,502 (Cost
$2,857,000)...... 2,857,000
----------

TOTAL INVESTMENTS
(Cost $186,901,994*)...... 99.01% $165,622,025
OTHER ASSETS & LIABILITIES
(NET)..................... 0.99 1,658,362
------ ------------
NET ASSETS................ 100.00% $167,280,387
====== ============

--------
* -- For Federal tax purposes, the tax basis of investments aggregate
$187,930,521.
+ -- Non-income producing security
++ -- Security fair valued using methods determined in good faith by the
Valuation Committee of the Board of Directors.
@ -- Security exempt from registration under Rule 144A of the Securities Act
of 1933. This security may be resold in transactions exempt from
registration, normally to qualified institutional buyers. At March 31,
2002 these securities amounted to $1,754,280 or 1.05% of net assets.
# -- The repurchase agreement is fully collateralized by U.S. government
and/or agency obligations based on market prices at the date of this
portfolio of investments.
ADR -- American Depositary Receipt
GDR -- Global Depositary Receipt
plc -- public limited company

See Notes to Financial Statements

Excelsior Funds, Inc.
Portfolio of Investments March 31, 2002
International Fund -- (continued)

At March 31, 2002, sector diversification of the Fund's investment portfolio
was as follows:

% of
Net Market
Sector Diversification (Unaudited) Assets Value
------------------------------------ ------ ------------

Financials.......................... 16.52% $ 27,642,238
Consumer Cyclical................... 12.04 20,141,393
Health Care......................... 11.83 19,797,531
Capital Goods....................... 10.92 18,260,551
Energy.............................. 9.11 15,236,976
Consumer Discretionary.............. 8.11 13,562,689
Consumer Staples.................... 7.94 13,291,047
Technology.......................... 4.67 7,806,221
Telecomminications.................. 4.58 7,658,401
Transportation...................... 3.12 5,219,089
Information Technology.............. 2.25 3,763,284
Repurchase Agreement................ 1.71 2,857,000
Materials........................... 1.68 2,806,381
Telecommunication Services.......... 1.66 2,786,866
Industrials......................... 1.61 2,689,220
Utilities........................... 1.26 2,103,138
------ ------------
Total Investments................... 99.01% $165,622,025
Other Assets and Liabilities (Net).. 0.99 1,658,362
------ ------------
Net Assets.......................... 100.00% $167,280,387
====== ============

Forward Foreign Currency Exchange Contracts (Note 1)

Contracts to In Exchange Unrealized
Settlement Date Deliver For Appreciation
------------------------- ------------- ----------- ------------

Foreign Currency Sales:
10/15/02 JY 1,317,160,000 $11,062,211 $991,842
=========== ========

--------
Currency Legend:
JP Japanese Yen

See Notes to Financial Statements

Excelsior Funds, Inc.
Portfolio of Investments March 31, 2002
Latin America Fund

Value
Shares (Note 1)
----------- -----------

COMMON STOCKS -- 80.07%
BRAZIL -- 17.33%
18,586,500 Cia Siderurgica
Nacional S.A.......... $ 335,821
16,742 Cia Vale do Rio
Doce.................. 457,451
339,657,132 Tele Celular Sul
Participacoes S.A..... 381,457
49,600 Tele Centro Oeste
Celular Participacoes
S.A. ADR.............. 299,088
2,510 Tele Norte Leste
Participacoes S.A.
(Telemar)............. 28
10,210 Telemig Celular
Participacoes S.A.
ADR................... 289,964
40,600 Ultrapar
Participacoes S.A.
ADR................... 377,580
11,580 Unibanco -- Uniao
de Bancos
Brasileiros S.A.
GDR................... 283,131
-----------
2,424,520
-----------
CHILE -- 6.08%
28,829 +Cia de
Telecomunicaciones
de Chile S.A. ADR..... 431,570
11,646 Xxxx Xxxxxx Y Xxxx
X.X. ADR.............. 418,790
-----------
850,360
-----------
MEXICO -- 52.38%
31,360 America Movil S.A.
de C.V., Series L,
ADR................... 622,810
17,755 Cemex S.A. de C.V.,
CPO ADR............... 524,483
11,648 Fomento Economico
Mexicano S.A. de
C.V. ADR.............. 549,203
146,300 Grupo Continental
S.A................... 267,673
562,575 Grupo Elektra S.A.
de C.V. CPO........... 468,147
338,600 +Grupo Financiero
BBVA Bancomer,
Series O.............. 370,804
35,900 Grupo Imsa S.A. de
C.V. ADR.............. 475,675
281,500 +Grupo Televisa S.A.
CPO................... 674,328
118,900 +Organizacion
Xxxxxxx X.X. de C.V.,
Series B.............. 387,459
49,510 Telefonos de Mexico
S.A. de C.V., Class L,
ADR................... 1,999,709
300,700 Wal-Mart de Mexico
S.A. de C.V., Series
V..................... 987,564
-----------
7,327,855
-----------
PERU -- 2.89%
40,558 Credicorp Ltd......... 403,958
-----------
UNITED STATES -- 0.02%
89,400 +StarMedia Network,
Inc................... 3,576
-----------
VENEZUELA -- 1.37%
13,899 Compania Anonima
Nacional Telefonos
de Venezuela
ADR................... 191,806
-----------
TOTAL COMMON
STOCKS
(Cost
$11,910,983).......... 11,202,075
-----------

Value
Shares (Note 1)
---------------- ----------

PREFERRED STOCKS -- 15.03%
BRAZIL -- 15.03%
54,983,000 Banco
Bradesco
S.A.......... $ 333,589
46,481,500 Brasil
Telecom
Participacoes
S.A.......... 368,012
15,956,000 Centrais
Eletricas
Brasileiras
S.A.......... 235,152
7,663,000 Eletropaulo
Metropolitana
de Sao Paulo
S.A.......... 244,002
32,177,300 Xxxxxx
X.X.......... 389,063
28,610,000 Tele Celular
Sul
Participacoes
S.A.......... 37,055
39,453,990 Tele Norte
Leste
Participacoes
S.A.
(Telemar).... 496,061
----------
TOTAL
PREFERRED
STOCKS
(Cost
$2,691,350).. 2,102,934
----------
No. of Rights
----------------
RIGHTS -- 0.00%
BRAZIL -- 0.00%
45,600 ++Cia Vale do
Rio Doce
(Cost $0).... --
----------
Principal Amount
----------------
REPURCHASE AGREEMENT -- 4.72%
UNITED
STATES -- 4.72%
$660,000 #XX Xxxxxx
Chase
Securities,
Inc.,
Repurchase
Agreement,
1.58%, dated
03/28/02,
due
04/01/02, to
be
repurchased
at $660,116
(Cost
$660,000).... 660,000
----------

TOTAL INVESTMENTS
(Cost $15,262,333*)....... 99.82% $13,965,009
OTHER ASSETS & LIABILITIES
(NET)..................... 0.18 25,155
------ -----------
NET ASSETS................ 100.00% $13,990,164
====== ===========

--------
* -- For Federal tax purposes, the tax basis of investments aggregate
$15,489,532.
+ -- Non-income producing security
++ -- Security fair valued using methods determined in good faith by the
Valuation Committee of the Board of Directors.
# -- The repurchase agreement is fully collateralized by U.S. government and/or
agency obligations based on market prices at the date of this portfolio of
investments.
ADR -- American Depositary Receipt
GDR -- Global Depositary Receipt

See Notes to Financial Statements

Excelsior Funds, Inc.
Portfolio of Investments March 31, 2002
Latin America Fund -- (continued)

At March 31, 2002, sector diversification of the Fund's investment portfolio
was as follows:

% of
Net Market
Sector Diversification (Unaudited) Assets Value
------------------------------------ ------ -----------

Telecommunications.................. 36.58% $ 5,117,560
Materials........................... 14.90 2,084,398
Consumer Discretionary.............. 13.17 1,843,170
Financials.......................... 9.95 1,391,482
Consumer Staples.................... 8.83 1,235,666
Consumer Cyclical................... 4.82 674,328
Repurchase Agreement................ 4.72 660,000
Utilities........................... 3.43 479,154
Capital Goods....................... 3.40 475,675
Information Technology.............. 0.02 3,576
------ -----------
Total Investments................... 99.82% $13,965,009
Other Assets and Liabilities (Net).. 0.18 25,155
------ -----------
Net Assets.......................... 100.00% $13,990,164
====== ===========

See Notes to Financial Statements

Excelsior Funds, Inc.
Portfolio of Investments March 31, 2002
Pacific/Asia Fund

Value
Shares (Note 1)
--------- ----------

COMMON STOCKS -- 92.83%
AUSTRALIA -- 4.66%
18,100 Rio Tinto Ltd...... $ 364,084
110,000 Woolworths Ltd..... 732,664
----------
1,096,748
----------
CHINA -- 14.45%
1,800,000 Chaoda Modern
Agriculture
Holdings Ltd....... 628,862
36,800 +China Mobile
(Hong Kong) Ltd.
ADR................ 568,560
1,582,200 +China Southern
Airlines Co., Ltd.,
Class H............ 522,342
21,800 CNOOC Ltd.
ADR................ 540,640
17,130 Huaneng Power
International, Inc.
ADR................ 460,112
1,341,000 People's Food
Holdings Ltd....... 679,991
----------
3,400,507
----------
HONG KONG -- 7.80%
1,051,200 Cafe de Coral
Holdings Ltd....... 774,943
1,283,000 +Convenience Retail
Asia Ltd........... 415,341
764,400 Shangri-La Asia
Ltd................ 646,816
----------
1,837,100
----------
INDIA -- 3.52%
14,300 Xx. Xxxxx'x
Laboratories
Ltd................ 321,838
73,900 Hero Honda Motors
Ltd................ 505,544
----------
827,382
----------
JAPAN -- 28.16%
17,900 Daiichi
Pharmaceutical Co.,
Ltd................ 334,270
8,500 Don Quijote Co.,
Ltd................ 489,343
117,000 Fuji Heavy
Industries Ltd..... 571,162
19,200 Hokuto Corp........ 478,062
130,000 Keisei Electric
Railway Co......... 358,019
44,700 Mimasu
Semiconductor
Industry Co.,
Ltd................ 573,358
5,000 Nintendo Co.,
Ltd................ 735,655
29 NTT DoCoMo,
Inc................ 78,772
116 +NTT DoCoMo, Inc.
(when issued)...... 314,211
12,000 +Sega Corp......... 213,679
16,700 Shin-Etsu Chemical
Co., Ltd........... 706,885
20,000 Shionogi & Co.,
Ltd................ 313,879
1,041 +Starbucks Coffee
Japan Ltd.......... 215,607
57,000 Takuma Co., Ltd.... 402,980

Value
Shares (Note 1)
--------- -----------

COMMON STOCKS -- (continued)
JAPAN --
(continued)
11,300 Tokyo Seimitsu Co.,
Ltd................. $ 418,629
299 Xxxxxxxxx D&C Co.,
Ltd................. 424,130
-----------
6,628,641
-----------
SINGAPORE -- 4.15%
416,000 Sembcorp Logistics
Ltd................. 498,595
58,000 United Overseas
Bank Ltd............ 478,117

-----------
976,712
-----------
SOUTH KOREA -- 12.46%
994 Xxxxx Xxxxxxxx
Beverage Co......... 518,368
2,910 +NCSoft Corp........ 515,355
2,658 Samsung
Electronics......... 716,105
8,600 Samsung Fire &
Marine Insurance
Co., Ltd............ 463,393
32,900 Shinhan Financial
Group Co., Ltd...... 432,650
16,328 +Taegu Department
Store Co............ 287,935
-----------
2,933,806
-----------
TAIWAN -- 7.19%
496,000 +Fubon Financial
Holding Co., Ltd.... 487,476
145,200 Hon Hai Precision
Industry Co., Ltd... 676,188
25,500 +Taiwan
Semiconductor
Manufacturing Co.,
Ltd. ADR............ 529,125
-----------
1,692,789
-----------
THAILAND -- 8.79%
87,500 +Aeon Thana Sinsap
Thailand Public Co.,
Ltd................. 410,156
3,659,200 +Home Product
Center Public Co.,
Ltd................. 441,425
505,000 +Siam Commercial
Bank Public Co.,
Ltd. (Foreign)...... 284,294
725,000 +Thai Farmers Bank
(Foreign)........... 424,805
898,700 Thai Union Frozen
Products Public Co.,
Ltd. (Foreign)...... 507,997
-----------
2,068,677
-----------
UNITED STATES -- 1.65%
13,200 Aflac, Inc.......... 389,400
-----------
TOTAL COMMON
STOCKS
(Cost
$21,184,047)........ 21,851,762
-----------

See Notes to Financial Statements

Excelsior Funds, Inc.
Portfolio of Investments March 31, 2002
Pacific/Asia Fund -- (continued)

Value
Shares (Note 1)
--------- ---------

PREFERRED STOCKS -- 2.62%
SOUTH KOREA --
2.62%
45,100 Hyundai Motor Co.,
Ltd.
(Cost $324,125)... $ 616,877
---------
Principal
Amount
---------
CONVERTIBLE BOND -- 0.54%
AUSTRALIA --
0.54%
$48,450 ERG Ltd.
(Cost $222,767)... 126,703
---------

Principal Value
Amount (Note 1)
--------- ---------

REPURCHASE AGREEMENT -- 1.67%
UNITED
STATES --
1.67%
$394,000 #XX Xxxxxx
Chase
Securities,
Inc.,
Repurchase
Agreement,
1.58%, dated
03/28/02,
due
04/01/02, to
be
repurchased
at $394,069
(Cost
$394,000)...... $ 394,000
---------

TOTAL INVESTMENTS
(Cost $22,124,939*)....... 97.66% $22,989,342
OTHER ASSETS & LIABILITIES
(NET)..................... 2.34 551,379

------ -----------
NET ASSETS................ 100.00% $23,540,721
====== ===========

--------
* -- For Federal tax purposes, the tax basis of investments aggregate
$22,388,775.
+ -- Non-income producing security
# -- The repurchase agreement is fully collateralized by U.S. government
and/or agency obligations based on market prices at the date of this
portfolio of investments.
ADR -- American Depositary Receipt

See Notes to Financial Statements

Excelsior Funds, Inc.
Portfolio of Investments March 31, 2002
Pacific/Asia Fund -- (continued)

At March 31, 2002, sector diversification of the Fund's investment portfolio
was as follows:

% of
Net Market
Sector Diversification (Unaudited) Assets Value
------------------------------------ ------ -----------

Consumer Discretionary.............. 16.06% $ 3,781,388
Financials.......................... 14.32 3,370,291
Consumer Cyclical................... 13.98 3,289,733
Technology.......................... 12.23 2,879,275
Consumer Staples.................... 7.25 1,706,356
Industrials......................... 6.41 1,509,904
Transportation...................... 5.86 1,378,956
Materials........................... 4.55 1,070,969
Health Care......................... 4.12 969,987
Telecommunications.................. 4.09 961,543
Information Technology.............. 2.87 676,188
Energy.............................. 2.30 540,640
Utilities........................... 1.95 460,112
Repurchase Agreement................ 1.67 394,000
------ -----------
Total Investments................... 97.66% $22,989,342
Other Assets and Liabilities (Net).. 2.34 551,379
------ -----------
Net Assets.......................... 100.00% $23,540,721
====== ===========

Forward Foreign Currency Exchange Contracts (Note 1)

In
Contracts to Exchange Unrealized
Settlement Date Deliver For Appreciation
------------------------- ------------ ---------- ------------

Foreign Currency Sales:
10/15/02 JY 421,440,000 $3,534,719 $312,592
========== ========

--------
Currency Legend:
JP Japanese Yen

See Notes to Financial Statements

Excelsior Funds, Inc.
Portfolio of Investments March 31, 2002
Pan European Fund

Value
Shares (Note 1)
------- -----------

COMMON STOCKS -- 96.38%
DENMARK -- 1.09%
19,900 Vestas Wind Systems
A.S.................... $ 630,552
-----------
FINLAND -- 1.00%
11,380 Hartwall Oyj Abp....... 292,873
13,540 Nokia Oyj.............. 286,212
-----------
579,085
-----------
FRANCE -- 20.84%
110,340 Alstom................. 1,475,675
33,780 Aventis S.A............ 2,333,998
69,428 Axa.................... 1,566,920
24,756 Carrefour S.A.......... 1,166,245
58,200 France Telecom S.A..... 1,783,172
101,100 +Gemplus International
S.A.................... 176,399
20,200 L'OREAL S.A............ 1,493,505
13,487 TotalFinaElf S.A....... 2,082,593
-----------
12,078,507
-----------
GERMANY -- 10.27%
27,370 Adidas-Salomon AG...... 1,957,962
4,780 Allianz AG............. 1,130,089
6,659 Muenchener
Rueckversicherungs
AG..................... 1,655,654
7,960 SAP AG................. 1,208,309
-----------
5,952,014
-----------
IRELAND -- 6.69%
239,491 Anglo Irish Bank Corp.
plc.................... 1,126,143
182,346 Irish Continental Group
plc.................... 1,272,629
117,200 Irish Life & Permanent
plc.................... 1,477,445
-----------
3,876,217
-----------
ITALY -- 13.57%
136,700 Autogrill S.p.A........ 1,505,025
160,940 ENI S.p.A.............. 2,358,788
317,400 Saipem S.p.A........... 1,952,143
123,150 San Paolo-IMI S.p.A.... 1,448,238
12,000 +Tod's S.p.A........... 598,292
-----------
7,862,486
-----------
NETHERLANDS -- 7.78%
38,800 +ASML Holding N.V...... 978,239
57,100 Koninklijke Ahold
N.V.................... 1,498,406
28,809 Nutreco Holding
N.V.................... 941,230
52,262 Wolters Kluwer N.V..... 1,094,241
-----------
4,512,116
-----------

Value
Shares (Note 1)
------- -----------

COMMON STOCKS -- (continued)
PORTUGAL -- 1.03%
169,340 +Banco Comercial
Portugues S.A......... $ 595,361
-----------
RUSSIA -- 3.37%
107,260 Surgutneftegaz ADR.... 1,953,741
-----------
SPAIN -- 2.17%
39,550 Banco Bilbao Vizcaya
Argentaria S.A........ 470,972
70,010 +Telefonica S.A....... 784,836
-----------
1,255,808
-----------
SWEDEN -- 3.08%
28,450 Nobel Biocare AB...... 1,356,829
101,750 Telefonaktiebolaget
LM Ericsson AB, Class
B..................... 430,253
-----------
1,787,082
-----------
SWITZERLAND -- 7.00%
38,800 +Logitech
International......... 1,838,721
5,400 Nestle S.A.
(Registered).......... 1,200,856
13,070 Roche Holding AG...... 1,016,115
-----------
4,055,692
-----------
UNITED
KINGDOM -- 18.49%
394,393 BAE Systems plc....... 1,881,412
206,360 Capita Group plc...... 1,219,505
92,885 GlaxoSmithKline plc... 2,187,717
974,983 Invensys plc.......... 1,721,586
73,300 Reckitt Benckiser plc. 1,204,536
296,282 Serco Group plc....... 1,291,031
654,641 Vodafone Group plc.... 1,209,541
-----------
10,715,328
-----------
TOTAL COMMON
STOCKS
(Cost $61,869,875).... 55,853,989
-----------
PREFERRED STOCKS -- 1.62%
GERMANY -- 1.62%
107,400 Prosieben SAT.1 Media
AG
(Cost $983,892)....... 936,957
-----------
No. of
Rights
-------
RIGHTS -- 0.03%
SPAIN -- 0.03%
70,010 +Telefonica S.A. (Cost
$37,897).............. 15,880
-----------

See Notes to Financial Statements

Excelsior Funds, Inc.
Portfolio of Investments March 31, 2002
Pan European Fund -- (continued)

Principal Value
Amount (Note 1)
--------- ---------

REPURCHASE AGREEMENT -- 0.29%
UNITED STATES -- 0.29%
$167,000 #XX Xxxxxx Xxxxx Securities, Inc.,
Repurchase Agreement, 1.58%,
dated 03/28/02, due 04/01/02, to
be repurchased at $167,029
(Cost $167,000)................... $ 167,000
---------

TOTAL INVESTMENTS
(Cost $63,058,664*)....... 98.32% $56,973,826
OTHER ASSETS & LIABILITIES
(NET)..................... 1.68 974,419
------ -----------
NET ASSETS................ 100.00% $57,948,245
====== ===========

--------
* --For Federal tax purposes, the tax basis of investments aggregate
$63,066,944.
+ --Non-income producing security
# --The repurchase agreement is fully collateralized by U.S. government
and/or agency obligations based on market prices at the date of this
portfolio of investments.
ADR--American Depositary Receipt
plc--public limited company
At March 31, 2002, sector diversification of the Fund's investment portfolio
was as follows:

% of
Net Market
Sector Diversification (Unaudited) Assets Value
------------------------------------ ------ -----------

Capital Goods....................... 16.45% $ 9,533,912
Financials.......................... 16.34 9,470,822
Energy.............................. 14.40 8,347,265
Health Care......................... 11.90 6,894,659
Consumer Discretionary.............. 7.19 4,169,676
Consumer Staples.................... 6.78 3,928,464
Consumer Cyclical................... 6.64 3,847,285
Telecommunications.................. 6.55 3,793,429
Technology.......................... 4.86 2,817,100
Information Technology.............. 3.48 2,015,120
Transportation...................... 2.20 1,272,629
Telecommunication Services.......... 1.24 716,465
Repurchase Agreement................ 0.29 167,000
------ -----------
Total Investments................... 98.32% $56,973,826
Other Assets and Liabilities (Net).. 1.68 974,419
------ -----------
Net Assets.......................... 100.00% $57,948,245
====== ===========

See Notes to Financial Statements

Excelsior Funds, Inc.
Portfolio of Investments March 31, 2002
Emerging Markets Fund

Value
Shares (Note 1)
--------- ----------

COMMON STOCKS -- 94.43%
BRAZIL -- 5.92%
20,300 Cia Vale do Rio
Doce................. $ 554,669
97,041 +Globo Cabo S.A.
ADR.................. 210,579
54,000 Tele Centro Oeste
Celular Participacoes
S.A. ADR............. 325,620
9,200 Telemig Celular
Participacoes S.A.
ADR.................. 261,280
----------
1,352,148
----------
CHILE -- 3.20%
27,610 +Cia de
Telecomunicaciones
de Chile S.A.
ADR.................. 413,322
8,846 Xxxx Xxxxxx Y Xxxx
X.X. ADR............. 318,102
----------
731,424
----------
CHINA -- 11.39%
1,972,000 Brilliance China
Automotive
Holdings Ltd......... 328,675
1,364,000 Chaoda Modern
Agriculture
Holdings Ltd......... 476,538
29,500 +China Mobile (Hong
Kong) Ltd. ADR....... 455,775
1,408,000 +China Southern
Airlines Co., Ltd.,
Class H.............. 464,833
485,627 Dazhong
Transportation
(Group) Co., Ltd.,
Class B.............. 437,064
16,400 Huaneng Power
International, Inc.
ADR.................. 440,504
----------
2,603,389
----------
HONG KONG -- 1.46%
218,700 Asia Satellite
Telecommunications
Holdings Ltd......... 333,666
----------
INDIA -- 2.36%
66,520 ICICI Ltd. ADR....... 540,142
----------
INDONESIA -- 1.83%
50,000 PT Telekomunikasi
Indonesia ADR........ 417,500
----------
ISRAEL -- 0.01%
9,000 +Tioga Technologies
Ltd.................. 1,215
----------
MEXICO -- 10.82%
19,800 America Movil S.A.
de C.V., Series L,
ADR.................. 393,228
494,400 +Grupo Financiero
BBVA Bancomer,
Series O............. 541,422
10,450 +Grupo Televisa S.A.
ADR.................. 506,930

Value
Shares (Note 1)
--------- ----------

COMMON STOCKS -- (continued)
MEXICO -- (continued)
10,900 Telefonos de Mexico S.A. de C.V.,
Class L, ADR..................... $ 440,251
179,500 Wal-Mart de Mexico S.A. de C.V.,
Series V......................... 589,517
----------
2,471,348
----------
RUSSIA -- 8.04%
10,450 Lukoil Co. ADR................... 603,780
85,830 Rostelecom ADR................... 663,466
34,620 Unified Energy System ADR........ 569,499
----------
1,836,745
----------
SOUTH AFRICA -- 3.06%
552,500 African Bank Investments Ltd..... 258,627
816 Edgars Consolidated Stores Ltd... 1,730
10 +Metro Cash & Carry Ltd.......... 2
43,250 Nedcor Ltd....................... 437,638
----------
697,997
----------
SOUTH KOREA -- 15.19%
19,838 Korea Telecom Corp. ADR.......... 475,715
37,900 LG Cable Ltd..................... 539,817
1,200 Lotte Chilsung Beverage Co....... 625,796
3,370 Samsung Electronics.............. 907,928
40,500 Shinhan Financial Group Co.,
Ltd.............................. 532,594
15,785 SK Telecom Co., Ltd. ADR......... 388,311
----------
3,470,161
----------
TAIWAN -- 15.95%
761,000 Chinatrust Commercial Bank....... 597,903
575,000 +Fubon Financial Holding Co.,
Ltd.............................. 565,119
120,152 Hon Hai Precision Industry Co.,
Ltd.............................. 559,541
300,562 President Chain Store Corp....... 562,456
211,365 Ritek Corp....................... 237,926
403,500 Synnex Technology International
Corp............................. 575,251
159,440 +Taiwan Semiconductor
Manufacturing Co., Ltd........... 432,747
5,400 +Taiwan Semiconductor
Manufacturing Co., Ltd. ADR...... 112,050
----------
3,642,993
----------
THAILAND -- 9.29%
77,600 BEC World Public Co., Ltd.
(Foreign)........................ 463,603
3,417,600 +Home Product Center Public Co.,
Ltd.............................. 412,279

See Notes to Financial Statements

Excelsior Funds, Inc.
Portfolio of Investments March 31, 2002
Emerging Markets Fund -- (continued)

Value
Shares (Note 1)
---------- -----------

COMMON STOCKS -- (continued)
THAILAND --
(continued)
469,100 +PTT Public Co.,
Ltd. (Foreign).... $ 385,348
668,000 +Siam Commercial
Bank Public Co.,
Ltd. (Foreign).... 376,057
829,900 +Thai Farmers Bank
(Foreign)......... 486,269
-----------
2,123,556
-----------
TURKEY -- 1.36%
28,041 Akbank T.A.S.
ADR............... 180,233
20,388 +Akbank T.A.S.
ADR............... 131,044
-----------
311,277
-----------
UNITED
KINGDOM --
2.18%
351,300 Old Mutual plc.... 499,208
-----------
UNITED
STATES -- 2.37%
51,800 India Fund, Inc... 541,310
-----------
TOTAL
COMMON
STOCKS
(Cost
$20,945,531)...... 21,574,079
-----------
PREFERRED STOCKS -- 3.69%
BRAZIL -- 3.69%
82,431,677 Banco Bradesco
S.A............... 500,123
13,800 Petrobras S.A..... 342,922
-----------
TOTAL
PREFERRED
STOCKS
(Cost $748,872)... 843,045
-----------

Principal Value
Amount (Note 1)
--------- ---------

REPURCHASE AGREEMENT -- 3.82%
UNITED
STATES -- 3.82%
$873,000 #XX Xxxxxx
Chase
Securities,
Inc.,
Repurchase
Agreement,
1.58%, dated
03/28/02,
due
04/01/01, to
be
repurchased
at $873,153
(Cost
$873,000)...... $ 873,000
---------

TOTAL INVESTMENTS
(Cost $22,567,403*)....... 101.94% $23,290,124
OTHER ASSETS & LIABILITIES
(NET)..................... (1.94) (443,254)
------ -----------
NET ASSETS................ 100.00% $22,846,870
====== ===========

--------
* --For Federal tax purposes, the tax basis of investments aggregate
$22,578,766.
+ --Non-income producing security
# --The repurchase agreement is fully collateralized by U.S. government
and/or agency obligations based on market prices at the date of this
portfolio of investments.
ADR --American Depositary Receipt
plc --public limited company

See Notes to Financial Statements

Excelsior Funds, Inc.
Portfolio of Investments March 31, 2002
Emerging Markets Fund -- (continued)

At March 31, 2002, sector diversification of the Fund's investment portfolio
was as follows:

% of
Net Market
Sector Diversification (Unaudited) Assets Value
------------------------------------ ------ -----------

Financials.......................... 27.08% $ 6,187,689
Telecommunications.................. 15.01 3,428,657
Technology.......................... 10.19 2,327,423
Consumer Discretionary.............. 6.85 1,565,982
Information Technology.............. 6.01 1,372,718
Energy.............................. 5.83 1,332,050
Consumer Cyclical................... 4.58 1,046,184
Utilities........................... 4.42 1,010,003
Consumer Staples.................... 4.13 943,898
Transportation...................... 3.95 901,897
Repurchase Agreement................ 3.82 873,000
Telecommunication Services.......... 3.53 805,811
Materials........................... 2.43 554,669
Industrials......................... 2.08 476,538
Capital Goods....................... 2.03 463,605
------ -----------
Total Investments................... 101.94% $23,290,124
Other Assets and Liabilities (Net).. (1.94) (443,254)
------ -----------
Net Assets.......................... 100.00% $22,846,870
====== ===========

See Notes to Financial Statements

EXCELSIOR FUNDS, INC.

NOTES TO FINANCIAL STATEMENTS

1. Significant Accounting Policies

Excelsior Funds, Inc. ("Excelsior Fund") was incorporated under the laws of
the State of Maryland on August 2, 1984 and is registered under the Investment
Company Act of 1940, as amended (the "1940 Act"), as an open-end management
investment company.

Excelsior Fund currently offers shares in nineteen managed investment
portfolios, each having its own investment objectives and policies. The
following is a summary of significant accounting policies for International
Fund, Latin America Fund, Pacific/Asia Fund, Pan European Fund and Emerging
Markets Fund (the "Portfolios"). Such policies are in conformity with
accounting principles generally accepted in the United States of America and
are consistently followed by Excelsior Fund in the preparation of the financial
statements. Accounting principles generally accepted in the United States of
America require management to make estimates and assumptions that affect the
reported amounts and disclosures in the financial statements. Actual results
could differ from these estimates. In November 2000, the American Institute of
Certified Public Accountants ("AICPA") issued a revised version of the AICPA
Audit and Accounting Guide for Investment Companies (the "Guide"). The
Portfolios adopted the provisions of the Guide as required on April 1, 2001.
The adoption of the Guide did not have a significant effect on the Portfolios'
financial statements. The financial statements for the remaining portfolios of
Excelsior Fund and for Excelsior Tax-Exempt Funds, Inc., are presented
separately.

(a) Portfolio valuation:

Portfolio securities that are primarily traded on foreign securities
exchanges are generally valued at the preceding closing values of such
securities on their respective exchanges, except that when an occurrence
subsequent to the time a value was so established is likely to have changed
such value, then a fair value of those securities will be determined by
consideration of other factors under the direction of the Board of
Directors. A security which is traded on more than one exchange is valued at
the quotation on the exchange determined to be the primary market on which
the security is traded. Securities for which market quotations are not
readily available are valued at fair value, pursuant to guidelines adopted
by Excelsior Fund's Board of Directors. Investments in securities which are
primarily traded on a domestic exchange are valued at the last sale price on
that exchange or, if there was no recent sale, at the last current bid
quotation.

Investments in foreign debt securities having maturities of 60 days or
less are valued at amortized cost, which approximates market value. All
other foreign securities are valued at the last current bid quotation if
market quotations are available, or at fair value as determined in
accordance with policies established by the Board of Directors. Investment
valuations, other assets and liabilities initially expressed in foreign
currencies are converted each business day into U.S. dollars based upon
current exchange rates. Purchases and sales of foreign investments and
income and expenses are converted into U.S. dollars based upon currency
exchange rates prevailing on the respective dates of such transactions. The
Portfolios do not isolate that portion of gains and losses on investment
securities that is due to changes in the foreign exchange rates from that
which is due to changes in market prices of such securities. The Portfolios
report gains and losses on foreign currency related transactions as realized
and unrealized gains and losses for financial reporting purposes, whereas
such components are treated as ordinary income or loss for Federal income
tax purposes.

Forward foreign currency exchange contracts: The Portfolios'
participation in forward currency exchange contracts will be limited to
hedging involving either specific transactions or portfolio positions.
Transaction hedging involves the purchase or sale of foreign currency with
respect to specific receivables or payables of a Portfolio generally arising
in connection with the purchase or sale of its portfolio securities.

Risk may arise upon entering into these contracts from the potential
inability of counterparties to meet the terms of their contracts and is
generally limited to the amount of unrealized gain on the contracts, if any,
at the date of default. Risk may also arise from unanticipated movements in
the value of a foreign currency relative to the U.S. dollar. Contracts are
marked-to-market daily and the change in market value is recorded as
unrealized appreciation or depreciation. Realized gains or losses arising
from such transactions are included in net realized gains or losses from
foreign currency transactions.

(b) Security transactions and investment income:

Security transactions are recorded on a trade date basis. Realized gains
and losses on investments sold are recorded on the basis of identified cost.
Interest income, including, where applicable, amortization of discount on
investments, is recorded on the accrual basis. Dividend income is recorded
on the ex-dividend date, except for certain dividends from foreign
securities, which are recorded as soon as the Portfolios are informed of the
dividend.

Each Portfolio invests primarily in securities of companies that are
located in or conduct a substantial amount of their business in foreign
countries, including emerging market countries. Prices of securities in
foreign markets generally, and emerging markets in particular, have
historically been more volatile than prices in U.S. markets. In addition, to
the extent that a Portfolio focuses its investments in a particular region,
the effects of political and economic events in that region on the value of
an investment in a Portfolio will be magnified. Some countries in which the
Portfolios may invest require government approval for the repatriation of
investment income, capital or the proceeds of sales of securities by foreign
investors. In addition, if there is a deterioration in a country's balance
of payments or for other reasons, a country may impose temporary
restrictions on foreign capital remittances abroad.

(d) Repurchase Agreements:

Excelsior Fund may purchase portfolio securities from financial
institutions deemed to be creditworthy by the investment adviser subject to
the seller's agreement to repurchase and Excelsior Fund's agreement to
resell such securities at mutually agreed upon prices. Securities purchased
subject to such repurchase agreements are deposited with Excelsior Fund's
custodian or sub-custodian or are maintained in the Federal Reserve/Treasury
book-entry system and must have, at all times, an aggregate market value not
less than the repurchase price.

If the value of the underlying security falls below the value of the
repurchase price, Excelsior Fund will require the seller to deposit
additional collateral by the next business day. Default or bankruptcy of the
seller may, however, expose the applicable Portfolio of Excelsior Fund to
possible delay in connection with the disposition of the underlying
securities or loss to the extent that

proceeds from a sale of the underlying securities were less than the
repurchase price under the agreement.

(e) Dividends and distributions to shareholders:

Dividends from net investment income are declared and paid semi-annually.
Net realized capital gains, unless offset by any available capital loss
carryforward, are distributed to shareholders at least annually. Dividends
and distributions are recorded on the ex-dividend date.

(f) Expense Allocation:

Expenses directly attributable to a Portfolio are charged to that
Portfolio. Other expenses are allocated to the respective Portfolios based
on average daily net assets.

2. Investment Advisory Fee, Administration Fee, Shareholder Servicing Agent
and Related Party Transactions:

United States Trust Company of New York ("U.S. Trust NY") and U.S. Trust
Company (collectively with U.S. Trust NY, "U.S. Trust") serve as the investment
adviser to the Portfolios. For the services provided pursuant to the Investment
Advisory Agreements, U.S. Trust is entitled to receive a fee, computed daily
and paid monthly, at the annual rate of 1% of the average daily net assets of
each of the International Fund, Latin America Fund, Pacific/Asia Fund, Pan
European Fund and 1.25% of the average daily net assets of the Emerging Markets
Fund. U.S. Trust NY is a state-chartered bank and trust company and a member
bank of the Federal Reserve System. U.S. Trust Company is a Connecticut state
bank and trust company. Each is a wholly-owned subsidiary of U.S. Trust
Corporation, a registered bank holding company. U.S Trust Corporation is a
wholly-owned subsidiary of The Xxxxxxx Xxxxxx Corporation ("Schwab").

U.S. Trust Company, SEI Investments Mutual Funds Services and Federated
Services Company ("FSC") (collectively, the "Administrators") provide
administrative services to Excelsior Fund. For the services provided to the
Portfolios, the Administrators are entitled jointly to annual fees, computed
daily and paid monthly, at the annual rate of 0.20% of the average daily net
assets of each Portfolio. Prior to June 4, 2001, U.S. Trust Company, X.X.
Xxxxxx Investor Services Co. and FSC served as Excelsior Fund's administrators
pursuant to administration agreements substantially similar to those currently
in effect for the Portfolios. Effective June 4, 2001, and until further notice
to the Portfolios, U.S. Trust Company has voluntarily agreed to waive its
portion of the administration fee in an amount equal to an annual rate of 0.04%
of the average daily net assets of each Portfolio. For the year ended March 31,
2002, administration fees charged by U.S. Trust Company, net of waivers, were
as follows:

International Fund... $269,892
Latin America Fund... 19,065
Pacific/Asia Fund.... 31,411
Pan European Fund.... 97,093
Emerging Markets Fund 16,667

From time to time, as they may deem appropriate in their sole discretion,
U.S. Trust and the Administrators may undertake to waive a portion or all of
the fees payable to them and also may reimburse the Portfolios for a portion of
other expenses. For the year ended March 31, 2002, and until

further notice, U.S. Trust has contractually agreed to waive investment
advisory fees and to reimburse other ordinary operating expenses to the extent
necessary to keep total operating expenses from exceeding 1.50% of each of
International Fund's, Pacific/Asia Fund's and Pan European Fund's average daily
net assets and 1.70% of each of Latin America Fund's and Emerging Markets
Fund's average daily net assets.

For the year ended March 31, 2002, pursuant to the above, U.S. Trust waived
investment advisory fees totaling:

International Fund... $315,888
Latin America Fund... 8,948
Pacific/Asia Fund.... 41,866
Emerging Markets Fund 24,162

Excelsior Fund has also entered into administrative servicing agreements
with various service organizations (which may include U.S. Trust and its
affiliates) requiring them to provide administrative support services to their
customers owning shares of the Portfolios. As a consideration for the
administrative services provided by each service organization to its customers,
each Portfolio will pay the service organization an administrative servicing
fee at the annual rate of up to 0.40% of the average daily net asset value of
its shares held by the service organization's customers. Such services may
include assisting in processing purchase, exchange and redemption requests;
transmitting and receiving funds in connection with customer orders to
purchase, exchange or redeem shares; and providing periodic statements.

Administrative servicing fees paid to affiliates of U.S. Trust amounted to
$433,556 for the year ended March 31, 2002. U.S. Trust has voluntarily agreed
to waive investment advisory and administration fees payable by each Portfolio
in an amount equal to the administrative servicing fees expense paid to
subsidiaries of U.S. Trust Corporation. For the year ended March 31, 2002, U.S.
Trust waived investment advisory and administration fees in amounts equal to
the administrative servicing fees for the Portfolios as set forth below:

International Fund... $287,630
Latin America Fund... 24,039
Pacific/Asia Fund.... 31,734
Pan European Fund.... 71,733
Emerging Markets Fund 18,420

Edgewood Services, Inc. (the "Distributor"), a wholly-owned subsidiary of
Federated Investors, Inc., serves as the distributor of Excelsior Fund.

Effective September 24, 2001, the Portfolios entered into an agreement with
Boston Financial Data Services, Inc. ("BFDS") under which BFDS provides
shareholder servicing agency services to the Portfolios. Prior to September 24,
2001, X.X. Xxxxxx Investor Services Co. acted as shareholder servicing agent to
the Portfolios.

Effective September 5, 2001, each Independent Director of the Portfolios
receives an annual fee of $15,000, plus a meeting fee of $2,500 for each
meeting attended, and is reimbursed for expenses incurred for attending
meetings. The Chairman receives an additional annual fee of $7,500. Each

member of the Nominating Committee receives an annual fee of $1,000 for services
in connection with this committee. Prior to September 5, 2001, each Independent
Director of the Portfolios received an annual fee of $9,000, plus a meeting fee
of $1,500 for each meeting attended, and was reimbursed for expenses incurred
for attending meetings. The Chairman received an additional annual fee of
$5,000. Each member of the Nominating Committee received an annual fee of $2,000
for services in connection with this committee.

3. Purchases and Sales of Securities:

For the year ended March 31, 2002, purchases and sales of securities,
excluding short-term investments, for the Portfolios aggregated:

Purchases Sales
------------ ------------

International Fund....... $107,551,169 $189,325,783
Latin America Fund....... 1,127,968 9,850,982
Pacific/Asia Fund........ 24,301,057 32,233,512
Pan European Fund........ 23,040,368 65,713,696
Emerging Markets Fund.... 13,408,244 4,112,456

4. Federal Taxes:

It is the policy of Excelsior Fund that each Portfolio continue to qualify
as a regulated investment company, if such qualification is in the best
interest of the shareholders, by complying with the requirements of the
Internal Revenue Code applicable to regulated investment companies, and by
distributing substantially all of its taxable earnings to its shareholders.

In order to avoid a Federal excise tax, each Portfolio is required to
distribute certain minimum amounts of net realized capital gain and net
investment income for the respective periods ending October 31 and December 31
in each calendar year.

Net realized and unrealized gains of the Portfolios derived in some
countries are subject to certain non-U.S. taxes.

Dividends and distributions are determined in accordance with Federal income
tax regulations which may differ from accounting principles generally accepted
in the United States of America. These differences are primarily due to
differing treatments for foreign currency transactions, passive foreign
investment companies, deferral of losses on wash sales and net capital losses
incurred after October 31 and within the taxable year ("Post-October losses").
To the extent these differences are permanent, adjustments are made to the
appropriate equity accounts in the period that the differences arise.
Accordingly, the following reclassifications have been made to/from the
following accounts:

Undistributed
Net Accumulated
Investment Net Realized Paid-In-
Income Gain (Loss) Capital
------------- ------------ --------

International Fund...... $366,379 $(385,901) $19,522
Latin America Fund...... (12,528) 12,528 --
Pacific/Asia Fund....... 128,296 (128,425) 129
Pan European Fund....... (50,597) 50,597 --
Emerging Markets Fund... (85,708) 85,708 --

The tax character of dividends and contributions paid during the years ended
March 31, 2001 and March 31, 2002 were as follows:

Ordinary Long-Term
Income Capital Gain Total
---------- ------------ -----------

International Fund
2001.......... $4,334,265 $14,190,707 $18,524,972
2002.......... 1,493,931 12,822,319 14,316,250
Latin America Fund
2001.......... -- -- --
2002.......... 687,401 -- 687,401
Pacific/Asia Fund
2001.......... 2,358,155 -- 2,358,155
2002.......... 57,409 -- 57,409
Pan European Fund
2001.......... 2,596,084 13,675,861 16,271,945
2002.......... -- 6,092,926 6,092,926
Emerging Markets Fund
2001.......... -- -- --
2002.......... 56,117 -- 56,117

As of March 31, 2002, the components of distributable earnings (accumulated
losses) on a tax basis were as follows:

Post-
Post- October Capital Unrealized Other
Ordinary October Currency Loss Appreciation Temporary
Income Losses Losses Carryforward (Depreciation) Difference Total
-------- ------------ -------- ------------ -------------- ----------- ------------

International Fund... $801,876 $(34,210,109) -- $(36,134,068) $(21,415,172) $(1,047,938) $(92,005,411)
Latin America Fund... 106,622 (136,299) $ (5,742) (28,682,493) (1,521,893) -- (30,239,805)
Pacific/Asia Fund.... 230,734 (1,056,783) -- (28,377,675) 903,354 (312,545) (28,612,915)
Pan European Fund.... 200,067 (7,366,119) (27,750) (10,962,167) (6,091,748) (236) (24,247,953)
Emerging Markets Fund 37,500 -- (72,213) (3,292,219) 712,657 -- (2,614,275)

Post-October losses are deemed to arise on the first business day of a
Portfolio's next taxable year.

For Federal income tax purposes, capital loss carryforwards may be carried
forward and applied against future capital gains. To the extent that such
carryforwards are utilized, capital gain distributions will be reduced. At
March 31, 2002, the following Portfolios had capital loss carryforwards for
Federal tax purposes available to offset future net capital gains through the
indicated expiration dates:

Expiration Expiration Expiration Expiration
Date Date Date Date
March 31, March 31, March 31, March 31,
2007 2008 2009 2010 Total
----------- ----------- ---------- ----------- -----------

International Fund... -- -- -- $36,134,068 $36,134,068
Latin America Fund... $12,221,795 $16,460,698 -- -- 28,682,493
Pacific/Asia Fund.... 10,077,003 -- $4,613,175 13,687,497 28,377,675
Pan European Fund.... -- -- -- 10,962,167 10,962,167
Emerging Markets Fund 302,894 1,975,151 612,121 402,053 3,292,219

During the year ended March 31, 2002, the Latin America Fund utilized
capital loss carryforwards totaling $1,566,270 to offset realized capital gains.

At March 31, 2002, aggregate gross unrealized appreciation for all
securities for which there was an excess of value over tax cost and aggregate
gross unrealized depreciation for all securities for which there was an excess
of tax cost over value were as follows:

Tax Basis Tax Basis Net Unrealized
Federal Unrealized Unrealized Appreciation
Tax Cost Appreciation (Depreciation) (Depreciation)
------------ ------------ -------------- --------------

International Fund.... $187,930,521 $11,023,693 $(33,332,189) $(22,308,496)
Latin America Fund.... 15,489,532 1,259,304 (2,783,827) (1,524,523)
Pacific/Asia Fund..... 22,388,775 3,457,646 (2,857,079) 600,567
Pan European Fund..... 63,066,944 4,699,666 (10,792,784) (6,093,118)
Emerging Markets Fund. 22,578,766 2,673,994 (1,962,636) 711,358

5. Common Stock:

Excelsior Fund currently has authorized capital of 35 billion shares of
Common Stock, 31.375 billion of which is currently classified to represent
interests in one of nineteen separate investment portfolios. Authorized capital
currently classified for each Portfolio is as follows: 875 million shares of
the International Fund; 1 billion shares each of the Latin America Fund,
Pacific/Asia Fund and Pan European Fund; and 500 million shares of the Emerging
Markets Fund.

Each share has a par value of $.001 and represents an equal proportionate
interest in the particular Portfolio with other shares of the same Portfolio,
and is entitled to such dividends and distributions of taxable earnings on the
assets belonging to such Portfolio as are declared at the discretion of
Excelsior Fund's Board of Directors.

A redemption fee of 2% of the value of the shares redeemed or exchanged is
imposed on shares in a Portfolio redeemed or exchanged 30 days or less after
their date of purchase. The redemption fee is intended to limit short-term
trading in the Portfolios or, to the extent that short-term trading persists,
to impose the costs of that type of activity on the shareholders who engage in
it. The redemption fee will be paid to the appropriate Portfolios.

International Fund
------------------------------------------------------
Year Ended Year Ended
03/31/02 03/31/01
-------------------------- --------------------------
Shares Amount Shares Amount
----------- ------------- ----------- -------------

Sold............................... 28,965,833 $ 321,823,295 33,933,023 $ 524,777,406
Issued as reinvestment of dividends 115,737 1,220,520 104,221 1,539,976
Redeemed........................... (37,631,289) (409,544,927) (31,991,754) (495,077,945)
Redemption Fee..................... -- 196,439 -- 325,999
----------- ------------- ----------- -------------
Net Increase (Decrease)............ (8,549,719) $ (86,304,673) 2,045,490 $ 31,565,436
=========== ============= =========== =============

Latin America Fund
------------------------------------------------------
Year Ended Year Ended
03/31/02 03/31/01
-------------------------- --------------------------
Shares Amount Shares Amount
----------- ------------- ----------- -------------

Sold............................... 501,480 $ 2,772,165 2,441,056 $ 15,021,852
Issued as reinvestment of dividends 37,887 208,476 -- --
Redeemed........................... (2,368,830) (12,549,280) (1,564,028) (9,559,110)
Redemption Fee..................... -- 1,810 -- 50,268
----------- ------------- ----------- -------------
Net Increase (Decrease)............ (1,829,463) $ (9,566,829) 877,028 $ 5,513,010
=========== ============= =========== =============

Pacific/Asia Fund
------------------------------------------------------
Year Ended Year Ended
03/31/02 03/31/01
-------------------------- --------------------------
Shares Amount Shares Amount
----------- ------------- ----------- -------------
Sold............................... 5,809,805 $ 36,830,622 7,461,911 $ 69,179,922
Issued as reinvestment of dividends 1,502 8,905 29,245 204,630
Redeemed........................... (7,143,269) (44,925,442) (10,078,584) (90,500,794)
Redemption Fee..................... -- 62,057 -- 180,926
----------- ------------- ----------- -------------
Net Decrease....................... (1,331,962) $ (8,023,858) (2,587,428) $ (20,935,316)
=========== ============= =========== =============

Pan European Fund
------------------------------------------------------
Year Ended Year Ended
03/31/02 03/31/01
-------------------------- --------------------------
Shares Amount Shares Amount
----------- ------------- ----------- -------------
Sold............................... 8,713,200 $ 77,247,621 11,124,477 $ 141,146,394
Issued as reinvestment of dividends 63,236 538,141 96,897 1,294,257
Redeemed........................... (13,477,743) (116,675,298) (11,635,186) (147,185,352)
Redemption Fee..................... -- 28,346 -- 274,334
----------- ------------- ----------- -------------
Net Decrease....................... (4,701,307) $ (38,861,190) (413,812) $ (4,470,367)
=========== ============= =========== =============

Emerging Markets Fund
------------------------------------------------------
Year Ended Year Ended
03/31/02 03/31/01
-------------------------- --------------------------
Shares Amount Shares Amount
----------- ------------- ----------- -------------
Sold............................... 3,266,009 $ 14,636,492 1,185,871 $ 6,082,160
Issued as reinvestment of dividends 222 1,001 -- --
Redeemed........................... (1,420,176) (5,823,346) (760,770) (4,136,308)
Redemption Fee..................... -- 1 -- 40
----------- ------------- ----------- -------------
Net Increase....................... 1,846,055 $ 8,814,148 425,101 $ 1,945,892
=========== ============= =========== =============

6. Organization Costs:

Excelsior Fund has borne all costs in connection with the initial
organization of new portfolios, including the fees for registering and
qualifying its shares for distribution under federal and state

securities regulations. All such costs incurred prior to June 30, 1998 are being
amortized on the straight-line basis over periods of five years from the dates
on which each Portfolio commenced operations.

7. Line of Credit:

The Portfolios and other affiliated funds participate in a $50 million
unsecured line of credit provided by The JPMorgan Chase Bank under a line of
credit agreement. Borrowings may be made to temporarily finance the repurchase
of Portfolio shares. Interest is charged to each Portfolio, based on its
borrowings, at a rate equal to the Federal Funds Rate plus 0.50% per year. In
addition, a commitment fee, based on the average daily unused portion of the
line of credit, is allocated among the participating Portfolios at the end of
each quarter. For the year ended March 31, 2002, the Portfolios had no
borrowings under the agreement.

REPORT OF ERNST & YOUNG LLP, INDEPENDENT AUDITORS

To the Shareholders
and Boards of Directors of
Excelsior Funds, Inc.

We have audited the accompanying statements of assets and liabilities,
including the schedules of investments, of the International, Latin America,
Pacific/Asia, Pan European, and Emerging Markets Funds (five of the portfolios
constituting the Excelsior Funds, Inc.) (the "Funds") as of March 31, 2002, and
the related statements of operations for the year then ended, the statements of
changes in net assets for each of the two years in the period then ended and
the financial highlights for each of the periods indicated therein. These
financial statements and financial highlights are the responsibility of the
Funds' management. Our responsibility is to express an opinion on these
financial statements and financial highlights based on our audits.

We conducted our audits in accordance with auditing standards generally
accepted in the United States. Those standards require that we plan and perform
the audit to obtain reasonable assurance about whether the financial statements
and financial highlights are free of material misstatement. An audit includes
examining, on a test basis, evidence supporting the amounts and disclosures in
the financial statements. Our procedures included confirmation of securities
owned as of March 31, 2002 by correspondence with the custodian and brokers or
by other appropriate auditing procedures where replies from brokers were not
received. An audit also includes assessing the accounting principles used and
significant estimates made by management, as well as evaluating the overall
financial statement presentation. We believe that our audits provide a
reasonable basis for our opinion.

In our opinion, the financial statements and financial highlights referred
to above present fairly, in all material respects, the financial position of
the International, Latin America, Pacific/Asia, Pan European, and Emerging
Markets Funds at March 31, 2002, the results of their operations for the year
then ended, the changes in their net assets for each of the two years in the
period then ended, and the financial highlights for each of the periods
indicated therein, in conformity with accounting principles generally accepted
in the United States.

/s/ ERNST & YOUNG LLP

Boston, Massachusetts
May 10, 2002

Directors/Trustees and Officers of the Excelsior Funds Complex (Unaudited)

Information pertaining to the directors/trustees and officers of Excelsior
Fund, Excelsior Tax-Exempt Fund and Excelsior Funds Trust (each a "Company" and
collectively, the "Excelsior Funds Complex") is set forth below.
Directors/Trustees who are not deemed to be "interested persons" of the
Excelsior Funds Complex as defined in the 1940 Act are referred to as
"Independent Board Members." Directors/trustees who are deemed to be
"interested persons" of the Excelsior Funds Complex are referred to as
"Interested Board Members." Currently, the Excelsior Funds Complex does not
have any Interested Board Members.

Number of
Portfolios
in
Term of Excelsior
Office Funds Other
and Complex Directorships
Position(s) Length Overseen Held by
Name, Address, Held with each of Time Principal Occupation(s) by Board Board
Age(1) Company Served(2) During Past 5 Years Member(3) Member(4)
------------------- --------------- --------- -------------------------------- ---------- -------------

INDEPENDENT BOARD MEMBERS
Xxxxxxxxx X. Xxxxxx Director/ Since Retired; Chairman of the Board (since 33 None
Age: 70 Trustee, 1997 1997) and President, Treasurer and
Chairman of the Director (since 1995) of Excelsior Fund
Board and Excelsior Tax-Exempt Fund;
Chairman of the Boards (since 1997),
President, Treasurer and Trustee (since
1995) of Excelsior Funds Trust; Vice
Chairman of U.S. Trust Corporation and
U.S. Trust New York (from February
1990 until September 1995); and
Chairman, U.S. Trust Company (from
March 1993 to May 1997).

Xxxxxx X. Xxxxx Director/ Since Director of Excelsior Fund and Excelsior 33 None
Age: 59 Trustee 1994 Tax-Exempt Fund (since 1996); Trustee
of Excelsior Funds Trust (since 1994);
Director, Xxxxxxx Xxxxxxxxxxx, Inc.
(engineering firm) (since 1995);
President, Continuation Investments
Group, Inc. (since 1997); President,
Mandrake Group (investment and
consulting firm) (1994-1997); Chairman,
MetroCashcard International Inc. (since
1999); Director, Hotelivision, Inc. (since
1999); Director, Alliance Group Services,
Inc. (since 1998); Director, Clean Fuels
Technology Corp. (since 1998);
Director, Absolute Quality Inc.(since
2000); Director, Hyperion Total Return
Fund, Inc. and three other funds for
which Hyperion Capital Management,
Inc. serves as investment adviser (since
1991); Director, The Latin America
Smaller Companies Fund, Inc. (from
1993 to 1998).

Number of
Portfolios
in
Term of Excelsior
Office Funds Other
and Complex Directorships
Position(s) Length of Overseen Held by
Name, Address, Held with each Time Principal Occupation(s) by Board Board
Age(1) Company Served(2) During Past 5 Years Member(3) Member(4)
--------------- -------------- --------- ------------------------ ---------- -------------

Xxxxx X. Xxxxxx Director/ Since Director of Excelsior Fund and Excelsior 33 None
Age: 72 Trustee September Tax-Exempt Fund and Trustee of
2001 Excelsior Funds Trust (since September
2001); President, Xxxxxx X. Xxxxx
Foundation (since 1989); Director,
Ashland, Inc. (refining, distribution,
road construction) (since 1989);
Director, Lexmark International, Inc.
(printer manufacturing) (since 1991);
Director, Washington Post Company
(media) (since 1989); Director, Polariod
Company (cameras and film) (since
1993).

Xxx Xxxx Director/ Since Director of Excelsior Fund and Excelsior 33 None
Age: 57 Trustee 2000 Tax-Exempt Fund (since July 2000);
Trustee of Excelsior Funds Trust (since
July 2000); Chief Executive Officer,
Comprehensive Health Services, Inc.
(health care management and
administration).

Xxxxx X. Xxxxx Director/ Since Director of Excelsior Fund and Excelsior 33 None
Age: 61 Trustee September Tax-Exempt Fund and Trustee of
2001 Excelsior Funds Trust (since September
2001); Retired: Chairman of the Board
of Trustees of Fairfield University (since
1996); Director, SLD Commodities, Inc.
(importer of nuts) (since 1991);
President, Corporate Asset Funding Co.,
Inc. (asset securitization) (from 1987 to
1999); General Partner (from 1980 to
1986) and Limited Partner (from 1986
to 1999), Xxxxxxx Xxxxx & Co.;
Chairman, Xxxxxxx Xxxxx Money
Markets, Inc. (from 1982 to 1986).

Xxxxxxxx Xxxx Director/ Since Director of Excelsior Fund and Excelsior 33 None
Age: 63 Trustee 1994 Tax-Exempt Fund (since 1996); Trustee
of Excelsior Funds Trust (since 1994);
Director, Group for The South Fork,
Bridgehampton, New York (since 1993);
and Member, Advisory Committee,
Knight Journalism Fellowships,
Massachusetts Institute of Technology
(since 1984); Candidate for the degree
of Master of Professional Studies,
Interactive Telecommunication
Program, Tisch School of the Arts, New
York University; expected date of
Graduation, May 2002.

Number of
Portfolios
Term of in
Office Excelsior
and Funds Other
Length Complex Directorships
Position(s) of Overseen Held by
Name, Address, Held with each Time Principal Occupation(s) by Board Board
Age(1) Company Served(2) During Past 5 Years Member(3) Member(4)
----------------------- --------------- --------- ----------------------------- ---------- -------------

OFFICERS
Xxxxxxx X. Xxxxxxxxxx President Since Executive Vice President, U.S. Trust N/A N/A
Age: 52 February Corporation (since January 2002);
2002 Chairman, U.S. Trust Company of North
Carolina (since 1999); Chairman and
Chief Executive Officer, NCT
Opportunities, Inc. (since 1994);
Chairman and founder, North Carolina
Trust Company (from 1984 to 1999);
Director, Xxxxxxxx Xxxxx, Inc. (since
1989) and The Tenner Companies
(since 1993).

Xxxxx Xxxxxxx Vice President, Since Senior Vice President, U.S. Trust N/A N/A
000 Xxxx Xxxxx Xxxx Chief Financial 2001 Company (since 1998); Vice President,
Stamford, CT 06905 Age: Officer and U.S. Trust Company (from 1996-1998);
43 Treasurer Vice President, Chief Financial Officer
and Treasurer, Excelsior Fund, Excelsior
Tax-Exempt Fund and Excelsior Funds
Trust (since February 2001); Chief
Financial Officer, Excelsior Venture
Investors III, LLC and Excelsior Venture
Partners III, LLC (since 2001); Chief
Financial Officer, Excelsior Private
Equity Fund II, Inc. (since 1997) and
UST Private Equity Fund, Inc. (since
1995).

Xxxxx Xxxxx Vice President Since Vice President, U.S. Trust Company N/A N/A
000 Xxxx Xxxxx Xxxx and Assistant 2001 (since 1994); Vice President and
Stamford, CT 06905 Age: Treasurer Assistant Treasurer, Excelsior Fund,
42 Excelsior Tax-Exempt Fund and
Excelsior Funds Trust (since February
2001); Treasurer, Excelsior Venture
Investors III, LLC and Excelsior Venture
Partners III, LLC (since 2001), Excelsior
Private Equity Fund II, Inc. (since 1997)
and UST Private Equity Fund, Inc. (since
1995).

X. Xxxxx XxXxxxxx, III Secretary Since Partner of the law firm of Drinker Xxxxxx N/A N/A
One Xxxxx Square 18th 1984 & Xxxxx LLP.
and Cherry Streets
Philadelphia, PA
19103-6996
Age: 59

Number of
Portfolios
Term of in
Office Excelsior
and Funds Other
Length Complex Directorships
Position(s) of Overseen Held by
Name, Address, Held with each Time Principal Occupation(s) by Board Board
Age(1) Company Served(2) During Past 5 Years Member(3) Member(4)
----------------------- -------------- --------- ----------------------------------------- ---------- -------------

Xxxxx X. XxXxxxxx Assistant Since Partner of the law firm of Drinker Xxxxxx N/A N/A
One Xxxxx Square Secretary February & Xxxxx LLP.
18th and Cherry Streets 2002
Philadelphia, PA 19103-
6996
Age: 50

Xxxxx Xxxxx Assistant Since Employed by SEI Investments since May N/A N/A
530 East Treasurer 2001 1993. Director of Funds Accounting, SEI
Swedesford Road Investments, since 2000; Fund
Wayne, PA 19087 Accounting Manager, 1997-2000.
Age: 33

Xxxxxxx X. Xxxxx Assistant Since Employed by SEI Investments since N/A N/A
One Freedom Treasurer 2001 October 1999. Vice President and
Valley Drive Assistant Secretary of SEI Investments
Oaks, PA 19456 since December 1999. Associate at
Age: 34 Dechert, Price & Xxxxxx (1997-1999).
Associate at Xxxxxxx, Xxxxxx & Xxxx (1993-
1997).

--------
(1)Each director/trustee may be contacted by writing to Excelsior Funds, Xxx
Xxxxxxx Xxxxxx Xxxxx, Xxxx, XX 00000.
(2)Each director/trustee shall hold office until the election and qualification
of his or her successor, or until he or she sooner dies, resigns or is
removed. The president, treasurer and secretary of each Company shall hold
office for a one year term and until their respective successors are chosen
and qualified, or in each case until he or she sooner dies, resigns is
removed, or becomes disqualified in accordance with each Company's by-laws.
(3)The Excelsior Funds Complex consists of all registered investment companies
(Excelsior Fund, Excelsior Tax-Exempt Fund and Excelsior Funds Trust) for
which U.S. Trust serves as investment adviser. As of March 31, 2002, the
Excelsior Funds Complex consisted of 33 Funds.
(4)Directorships of companies required to report to the Securities and Exchange
Commission under the Securities Exchange Act of 1934 (i.e., "public
companies") or other investment companies registered under the 1940 Act.

For more information regarding the Directors/Trustees and Officers, please
refer to the Statement of Additional Information, which is available upon
request by calling 0-000-000-0000.

Voting Results of Special Meetings of Shareholders: (Unaudited)

On September 7, 2001 there was a special meeting of the shareholders of
Excelsior Funds Trust, at such meeting shareholders of were asked to consider
two proposals. The following were the results of the vote by proposal:

1. To consider and act upon a proposal to elect Messrs. Xxxxx, Gomory,
Hall, Lynch, Piel and Wonham as Trustees of Excelsior Funds Trust.

For the proposal............................................ 74,992,212
Against the proposal........................................ 104,955
Abstain..................................................... 0

2. The ratification of the selection of Ernst & Young LLP as independent auditors for Excelsior Funds
Trust.

For the proposal............................................ 74,983,840
Against the proposal........................................ 51,955
Abstain..................................................... 61,677

On September 7, 2001 and continued until September 14, 2001, there was a special meeting of the
shareholders of Excelsior Funds Inc. and Excelsior Tax-Exempt Funds, Inc., at such meeting shareholders were
asked to consider two proposals. The following were the results of the vote by proposal:

1. To consider and act upon a proposal to elect Messrs. Xxxxx, Gomory, Hall, Lynch, Piel and
Wonham as Trustees of Excelsior Funds, Inc. and Excelsior Tax-Exempt Funds, Inc.

For the proposal............................................ 2,605,422,870
Against the proposal........................................ 46,506,773
Abstain..................................................... 0

2. The ratification of the selection of Ernst & Young LLP as independent auditors for Excelsior Funds,
Inc. and Excelsior Tax-Exempt Funds, Inc.

For the proposal............................................ 2,617,069,459
Against the proposal........................................ 31,498,404
Abstain..................................................... 3,361,780

Federal Tax Information: (Unaudited)

For the year ended March 31, 2002, the designation of long-term capital gain
and the amounts expected to be passed through to shareholders as foreign tax
credits are approximated as follows:

20% Foreign
Long-Term Tax
Fund Capital Gain Credit
--------------------- ------------ --------

International Fund... $12,822,319 $285,065
Latin America Fund... -- 34,302
Pacific/Asia Fund.... -- 37,228
Pan European Fund.... 6,092,926 84,945
Emerging Markets Fund -- 26,452

In addition, for the year ended March 31, 2002, gross income derived from
sources within foreign countries approximately amounted to the following:

Foreign
Source
Fund Income
--------------------- ----------

International Fund... $3,539,305
Latin America Fund... 425,829
Pacific/Asia Fund.... 404,693
Pan European Fund.... 1,342,625
Emerging Markets Fund 208,096

AR-INTL-0302

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