-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: keymaster@town.hall.org Originator-Key-Asymmetric: MFkwCgYEVQgBAQICAgADSwAwSAJBALeWW4xDV4i7+b6+UyPn5RtObb1cJ7VkACDq pKb9/DClgTKIm08lCfoilvi9Wl4SODbR1+1waHhiGmeZO8OdgLUCAwEAAQ== MIC-Info: RSA-MD5,RSA, WMHDZpljjTFQJHKf7ThvBmsTP5BMjiEZSGf3ypp7x5C8Ofm3a68uXQVJPJJSAxfm yeptD9KcZqofwwtSmYHOLA== 0000912057-95-007390.txt : 19950907 0000912057-95-007390.hdr.sgml : 19950907 ACCESSION NUMBER: 0000912057-95-007390 CONFORMED SUBMISSION TYPE: N-30D PUBLIC DOCUMENT COUNT: 1 CONFORMED PERIOD OF REPORT: 19950630 FILED AS OF DATE: 19950906 SROS: NONE FILER: COMPANY DATA: COMPANY CONFORMED NAME: CONNECTICUT MUTUAL INVESTMENT ACCOUNTS INC CENTRAL INDEX KEY: 0000356865 STANDARD INDUSTRIAL CLASSIFICATION: [] IRS NUMBER: 061052841 STATE OF INCORPORATION: MD FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: N-30D SEC ACT: 1940 Act SEC FILE NUMBER: 811-03346 FILM NUMBER: 95570318 BUSINESS ADDRESS: STREET 1: 140 GARDEN ST CITY: HARTFORD STATE: CT ZIP: 06154 BUSINESS PHONE: 2039875002 FORMER COMPANY: FORMER CONFORMED NAME: CONNECTICUT MUTUAL LIQUID ACCOUNT INC DATE OF NAME CHANGE: 19851106 N-30D 1 N-30D CONNECTICUT MUTUAL INVESTMENT ACCOUNTS, INC. 1995 SEMI-ANNUAL REPORT DEAR CMIA SHAREHOLDER: The 0.5 percent increase in short-term interest rates in February 1995 marked the end of a series of rate hikes designed by the Fed to rein in a rapidly growing economy. But perception changed during the first quarter from one of an economy that was growing too rapidly to one that was not growing at all. Buoyed by the positive changes in Federal Reserve policy, the bond market rallied. The good news signaled by the bond market along with the prospect for healthy corporate earnings, ignited the stock market. Connecticut Mutual Investment Accounts (CMIA) benefitted from the upturns, with three of its funds turning in double-digit increases as reported by Lipper Analytical Services, Inc. Riding on the tail of interest rate increases, the CMIA Liquid Account posted a 4.63 percent increase for the 12 months ended June 30, 1995. This compared with a 4.91 percent increase for the Lipper category average. The CMIA Income Account posted an 8.06 percent increase for the twelve month period, comparing favorably with the 7.26 percent increase in the category average. The above average results stemmed from the Account's position in non-callable high-grade corporate bonds that are longer than the average duration. The CMIA Government Securities Account was positioned for the decreasing interest rate environment, with maturities longer than the average of most funds. The Account turned in an 11.65 percent increase for the 12 month period ended June 30, 1995, according to Lipper, compared with the category average increase of 10.85 percent. The CMIA Total Return Account turned in a 15.53 percent increase for the year, in line with the 15.99 percent increase for the category average of most funds. As of June 30, 1995, the Account consisted of 39 percent stocks, 36 percent bonds and 26 percent cash. The CMIA Growth Account advanced 22.43 percent for the period, outperforming the Lipper category average of 22.25 percent. While these results show a marked improvement from last year's returns and the outlook remains good, the economy is still unsettled. Although some investors have engaged in profit-taking during these heady times, our advice remains the same -- that a long-term stance generally produces greatest results for investors seeking long-term growth of capital. Short-term moves are unpredictable but, over the long-term the markets have continued to produce positive results. We, too, plan to stay the course with our consistently applied, value oriented investment strategy that has produced solid results during both bull and bear financial markets. While past performance does not guarantee future results, we are confident that this approach will continue to reward patient investors over time. ECONOMIC FORECAST: THIRD AND FOURTH QUARTERS 1995 All the right elements were in place to produce the strong showings of stocks and bonds in the first half of 1995. The economy slowed, interest rates ceased their upward climb, inflation stalled and corporate earnings were strong. It appears that the Fed may have succeeded in engineering a soft landing for the economy with moderate economic growth and low inflation. Although, this seems to be an ideal situation for investors, there are no guarantees that a recession will not follow. On average, stocks are somewhat overvalued by historical standards, dividend ratios are low and price/earnings ratios are high. These indicators would suggest caution in the short-term. Despite this cautionary note, we are optimistic that moderate economic growth and low inflation will continue, fueling strong demand for stocks and bonds over time. Inflation is expected to hover around 3 percent, dropping even lower if the economy slows further. A slowing of the economy could prompt the Fed to lower interest rates even further, spurring a continuation of the bond market rally in the second half of 1995. SUMMARY Both the stock and bond markets have picked up a good head of steam that we expect to continue for the foreseeable future. But amid good news always lurks the chance for a negative surprise. We believe that by sticking to a long-term investment discipline[|nb|][cad 228] rather than chasing the latest investment fad[|nb|][cad 228] you may achieve favorable returns over the long-term. As a CMIA investor, you know that your money is in a quality fund with a solid track record. You can feel confident that our investment professionals continue to pursue a conservative management philosophy designed to provide you with highly competitive returns, as well as peace of mind. If you want additional information on your investment options, talk to your registered representative or call 1-800-234-5606, and press one, to find out more.[ql] David E. Sams, Jr. PRESIDENT AND CHIEF EXECUTIVE OFFICER CONNECTICUT MUTUAL LIFE INSURANCE COMPANY T H E C M I A A C C O U N T S LIQUID The objective of this Account is to achieve as high a level of current income as possible consistent with safety of principal and maintenance of liquidity by investing in money market instruments. GOVERNMENT SECURITIES This Account seeks to provide a high level of current income with a high degree of safety of principal by investing in securities issued by, or guaranteed as to principal and interest by, the U.S. Government, its agencies, authorities or instrumentalities and by obligations that are fully collateralized or otherwise fully backed by U.S. Government Securities.* INCOME The objective of this Account is to obtain a high level of current income consistent with prudent investment risk and preservation of capital, by investing primarily in fixed-income debt securities that generally mature within five years of purchase. TOTAL RETURN This Account attempts to maximize over time the return achieved from capital appreciation and income by varying the allocation of the Account's assets among stocks, corporate bonds, securities issued by the U.S. Government, and money market instruments of the type acquired respectively by the Growth Account, the Government Securities Account, the Income Account and the Liquid Account. GROWTH This Account invests in common stocks with low price-earnings ratios and better than anticipated earnings, with the goal of long-term growth of capital. PAST PERFORMANCE IS NOT INDICATIVE OF FUTURE PERFORMANCE. LIPPER RANKINGS DO NOT TAKE INTO CONSIDERATION THE EFFECT OF SALES CHARGES AND HAD SALES CHARGES BEEN INCLUDED, THE PERFORMANCE RANKINGS WOULD HAVE BEEN LESS FAVORABLE. * THE GOVERNMENT BACKING APPLIES ONLY TO THE TIMELY PAYMENT OF PRINCIPAL AND INTEREST AND DOES NOT APPLY TO THE SHARES OF THE FUND. THIS MATERIAL IS INTENDED FOR USE ONLY WHEN ACCOMPANIED OR PRECEDED BY A PROSPECTUS. PERFORMANCE -- TOTAL RETURN* SALES CHARGE ADJUSTED PERFORMANCE As of 6/30/95* -- AFTER EXPENSES
AVERAGE ANNUALIZED 30 DAY CURRENT YIELD ACCOUNTS ONE YEAR FIVE YEAR SINCE INCEPTION AS OF 6/30/95 LIQUID** 4.63% 4.04% 6.50% 5.09% GOVERNMENT SECURITIES 7.18% 7.73% 8.98% 5.46% INCOME 3.74% 6.61% 7.81% 6.21% TOTAL RETURN 9.75% 10.72% 11.78% GROWTH 16.31% 12.89% 14.06%
Sales Charge Adjusted Performance assumes the current initial sales charge reduces portfolio performance and was paid at the beginning of each period shown. The current maximum initial sales charges are 4.00% for the Government Securities and Income Accounts and 5.00% for the Total Return and Growth Accounts. The Liquid Account has no initial sales charge. ACTUAL PORTFOLIO PERFORMANCE As of 6/30/95* -- AFTER EXPENSES
AVERAGE ANNUALIZED 7-DAY CURRENT YIELD ACCOUNTS ONE YEAR FIVE YEAR SINCE INCEPTION AS OF 6/30/95 LIQUID** 4.63% 4.04% 6.50% 5.11% GOVERNMENT SECURITIES 11.65% 8.62% 9.43% INCOME 8.06% 7.48% 8.26% TOTAL RETURN 15.53% 11.86% 12.37% GROWTH 22.43% 14.06% 14.66%
Actual Portfolio Performance assumes the initial sales charge is paid by a client in a prior period and is not reflected on this table. All portfolios became effective September 16, 1985 except for the Liquid Account which was first offered to the public on March 31, 1982. *Total Return figures include reinvestment of all dividends and capital gains. Performance data quoted represents past performance. The investment return and principal values of an investment will fluctuate so that an investor's shares, when redeemed, may be worth more or less than their original cost. **There can be no assurance that the Liquid Account will be able to maintain a stable net asset value of $1.00 per share. An investment in the Liquid Account is neither insured nor guaranteed by the U.S. Government. SCHEDULE OF INVESTMENTS CONNECTICUT MUTUAL INVESTMENT ACCOUNTS, INC. June 30, 1995 (Unaudited) LIQUID ACCOUNT
PRINCIPAL MARKET AMOUNT SECURITY VALUE COMMERCIAL PAPER (96.7% OF NET ASSETS) American Broadcasting Companies, Inc. $ 1,500,000 5.62%, due 10/4/95 $ 1,477,754 American Express Credit Corp. 2,033,000 6.10%, due 7/10/95 2,033,000 784,000 5.75%, due 11/30/95 784,000 600,000 5.70%, due 12/15/95 600,000 American Home Products Corp. 1,035,000 5.97%, due 8/4/95 1,029,164 Banc One Corp. 1,000,000 5.92%, due 8/9/95 993,587 Bank of America 1,000,000 5.87%, due 11/10/95 978,477 2,000,000 5.71%, due 12/4/95 1,950,513 Beneficial Corp. 1,000,000 5.94%, due 8/18/95 992,080 Cargill, Inc. 2,000,000 5.67%, due 10/12/95 1,967,555 Corporate Asset Funding Co., Inc. 1,150,000 6.10%, due 8/24/95 1,139,478 Corporate Receivables Corp. 1,500,000 5.80%, due 8/3/95 1,492,025 1,000,000 5.95%, due 8/23/95 991,240 Dayton Hudson Corp. 500,000 5.97%, due 7/17/95 498,673 2,500,000 5.80%, due 8/1/95 2,487,514 Electronic Data Systems Corp. 1,200,000 5.90%, due 9/18/95 1,184,463 Ford Motor Credit Co. 2,000,000 6.07%, due 7/20/95 2,000,000 1,300,000 5.55%, due 1/12/96 1,260,919 General Electric Capital Corp. 1,160,000 5.97%, due 8/2/95 1,153,844 1,000,000 6.17%, due 10/11/95 982,518 General Electric Co. 925,000 5.87%, due 8/22/95 917,157 Golden Peanut Co. 750,000 5.95%, due 8/7/95 745,414 International Lease Finance Corp. 1,000,000 6.00%, due 7/20/95 996,833 1,000,000 5.72%, due 10/16/95 982,999 Interstate Power Co. 370,000 5.97%, due 7/17/95 369,018 640,000 5.93%, due 7/25/95 637,470 McGraw-Hill Inc. 700,000 6.10%, due 7/28/95 696,798 1,300,000 5.94%, due 8/2/95 1,293,136 PRINCIPAL MARKET AMOUNT SECURITY VALUE Merrill Lynch & Co., Inc. $ 750,000 5.93%, due 8/8/95 $ 745,305 725,000 5.95%, due 8/14/95 719,728 860,000 5.95%, due 8/15/95 853,604 900,000 5.91%, due 8/28/95 891,431 Mitsubishi International Corp. 2,800,000 5.90%, due 8/4/95 2,784,398 Monsanto Co. 1,685,000 5.85%, due 8/29/95 1,668,845 Morgan (J.P.) & Company, Inc. 1,700,000 5.84%, due 9/7/95 1,681,247 National Rural Utilities Cooperative Finance Corp. 425,000 5.93%, due 9/1/95 420,660 1,000,000 5.88%, due 9/6/95 989,057 1,100,000 5.95%, due 9/6/95 1,087,819 700,000 5.90%, due 9/29/95 689,675 Norwest Corp. 1,300,000 6.01%, due 7/24/95 1,295,008 2,000,000 5.73%, due 9/25/95 1,972,623 NYNEX Corp. 2,000,000 5.71%, due 9/5/95 1,979,063 Penney (J.C.) Funding Corp. 1,000,000 5.94%, due 7/20/95 996,865 1,570,000 5.93%, due 7/21/95 1,564,828 PHH Corp. 1,000,000 5.85%, due 7/12/95 998,213 Philip Morris Companies Inc. 1,100,000 5.99%, due 7/31/95 1,094,509 Potomac Electric Power Co. 595,000 5.97%, due 8/7/95 591,349 U.S. Bancorp 900,000 6.04%, due 7/7/95 899,094 U S West Communications, Inc. 1,480,000 6.07%, due 7/5/95 1,479,002 Wal-Mart Stores Inc. 600,000 6.15%, due 7/3/95 599,795 Xerox Corp. 1,200,000 5.90%, due 8/10/95 1,192,133 1,100,000 5.93%, due 8/22/95 1,090,578 850,000 5.94%, due 8/25/95 842,286 ------------ TOTAL COMMERCIAL PAPER (COST $61,762,744) 61,762,744 ------------ U.S. AGENCY SHORT-TERM OBLIGATIONS (3.1% OF NET ASSETS) Student Loan Marketing Assn. 5.69%, due 5/14/96 (Cost 2,000,000 $2,000,000) 2,000,000 ------------ TOTAL INVESTMENTS (COST $63,762,744) $ 63,762,744 ------------ ------------
1 The accompanying notes are an integral part of these financial statements. GOVERNMENT SECURITIES ACCOUNT INCOME ACCOUNT
PRINCIPAL MARKET AMOUNT SECURITY VALUE U.S. GOVERNMENT & AGENCY LONG-TERM OBLIGATIONS (98.5% OF NET ASSETS) Federal National Mortgage Assn. $ 1,174,238 7.00%, 2019 $ 1,177,537 Government National Mortgage Assn. 81,101 11.50%, 1998 86,601 45,095 9.50%, 2001 47,251 50,138 7.25%, 2005 51,297 324,599 7.50%, 2006 328,527 200,662 8.00%, 2006 206,766 524,312 8.00%, 2007 541,022 180,541 8.25%, 2008 186,777 84,503 9.00%, 2008 89,548 562,233 9.00%, 2009 596,423 10,111 13.50%, 2010 11,425 98,967 13.00%, 2011 111,894 3,439 13.50%, 2011 3,886 64,994 14.00%, 2011 73,890 43,407 15.00%, 2011 50,135 3,718 12.00%, 2012 4,185 108,607 13.50%, 2012 121,962 168,566 15.00%, 2012 194,694 107,161 11.50%, 2013 120,053 45,032 13.00%, 2013 50,914 203,024 13.50%, 2013 229,417 83,119 12.00%, 2014 93,561 284,277 12.50%, 2014 322,475 139,709 13.00%, 2014 157,958 1,414 13.50%, 2014 1,598 534,679 8.50%, 2016 559,878 445,915 6.50%, 2017 453,023 409,588 10.00%, 2019 446,729 101,689 12.50%, 2019 114,175 2,177,473 6.50%, 2023 2,091,724 1,860,980 7.00%, 2023 1,831,316 952,018 7.00%, 2024 936,843 500,000 8.00%, TBA 511,875 U.S. Treasury Bond 9,650,000 9.25%, 2016 12,373,133 U.S. Treasury Notes 800,000 9.25%, 1996 814,248 5,000,000 9.375%, 1996 5,138,300 500,000 8.50%, 1997 522,185 3,500,000 8.875%, 1997 3,728,585 6,750,000 9.25%, 1998 7,381,733 2,500,000 7.50%, 2001 2,683,600 2,250,000 11.75%, 2001 2,856,442 3,000,000 7.25%, 2004 3,205,770 ------------ TOTAL U.S. GOVERNMENT & AGENCY LONG-TERM OBLIGATIONS (COST $49,799,117) 50,509,355 ------------ REPURCHASE AGREEMENTS* (.6% OF NET ASSETS) State Street Bank & Trust Co. 5.50%, due 7/3/95 (Cost 310,000 $310,000) 310,000 ------------ TOTAL INVESTMENTS (COST $50,109,117) $ 50,819,355 ------------ ------------ PRINCIPAL MARKET AMOUNT SECURITY VALUE CORPORATE BONDS (83.2% OF NET ASSETS) AEROSPACE (1.7%) British Aerospace Finance Inc. $ 500,000 8.00%, 1997 $ 513,750 Coltec Industries Inc. 250,000 9.75%, 2000 258,750 ------------ 772,500 ------------ AIRLINES (1.2%) Southwest Airlines Co. 500,000 9.25%, 1998 532,270 ------------ AUTO & AUTO RELATED (1.9%) Burmah Castrol Capital, Ltd. 500,000 7.00%, 1997 508,525 Ford Motor Co. 372,474 6.27%, 2000 370,097 ------------ 878,622 ------------ BANKING (12.8%) Banco Ganadero SA 400,000 9.75%, 1999 399,500 Bank of Boston Corp. 400,000 10.30%, 2000 402,312 Barnett Banks, Inc. 515,000 8.50%, 1999 543,459 Chemical Banking Corp. 500,000 6.625%, 1998 501,985 Citicorp 500,000 9.46%, 1996 513,500 First Fidelity Bancorporation 500,000 8.50%, 1998 524,650 First Union Corp. 500,000 6.75%, 1998 503,420 First USA Bank of Delaware 500,000 5.05%, 1995 497,375 Home Savings of America 500,000 10.50%, 1997 513,910 Mellon Financial Co. 500,000 6.50%, 1997 502,175 Security Pacific Corp. 500,000 7.75%, 1996 510,345 Shawmut National Corp. 500,000 8.875%, 1996 508,650 ------------ 5,921,281 ------------ BROKER/DEALER (1.3%) Merrill Lynch & Co., Inc. 600,000 8.25%, 1996 619,440 ------------ CHEMICALS (2.2%) FMC Corp. 250,000 8.75%, 1999 266,190
*Repurchase agreements are fully collateralized by U.S. Government obligations. 2 INCOME ACCOUNT (cont'd)
PRINCIPAL MARKET AMOUNT SECURITY VALUE Lyondell Petrochemical Co. $ 750,000 8.25%, 1997 $ 766,560 ------------ 1,032,750 ------------ COMPUTER BUSINESS EQUIPMENT & SERVICES (.8%) Unisys Corp. 350,000 9.75%, 1996 357,875 ------------ CONGLOMERATES (.9%) Tenneco, Inc. 375,000 10.00%, 1998 409,357 ------------ ELECTRIC UTILITIES (2.8%) Consumers Power Co. 250,000 8.75%, 1998 262,042 Long Island Lighting Co. 500,000 8.75%, 1996 508,750 Midwest Power Systems Inc. 500,000 6.25%, 1998 498,210 ------------ 1,269,002 ------------ ELECTRICAL & ELECTRONIC EQUIPMENT (2.2%) Electrolux 500,000 7.75%, 1997 511,875 Westinghouse Electric Corp. 500,000 7.75%, 1996 503,065 ------------ 1,014,940 ------------ FINANCIAL SERVICES (15.8%) Allied Lyons 500,000 6.50%, 1997 501,563 American General Finance Corp. 500,000 8.50%, 1998 529,015 Aristar, Inc. 500,000 6.25%, 1996 499,990 Associates Corp. of North America 500,000 7.40%, 1999 517,540 Avco Financial Services, Inc. 500,000 5.875%, 1997 495,300 Banque Nationale de Paris 205,000 9.875%, 1998 222,683 Beneficial Corp. 500,000 9.125%, 1998 532,105 Chrysler Financial Corp. 500,000 5.08%, 1997 491,280 Countrywide Funding Corp. 500,000 6.57%, 1997 502,010 Discover Credit Corp. 250,000 8.73%, 1996 256,215 Fleet Mortgage Group, Inc. 500,000 6.125%, 1997 497,035 General Motors Acceptance Corp. 500,000 5.65%, 1997 491,320 PRINCIPAL MARKET AMOUNT SECURITY VALUE Green Tree Financial Corp. $ 250,000 7.70%, 2019 $ 258,905 Household Financial Corporation Ltd. 250,000 6.00%, 1998 246,907 Household International Netherlands B.V. 250,000 6.00%, 1999 245,913 Norwest Financial, Inc. 500,000 6.50%, 1997 502,450 Transamerica Finance Group, Inc. 500,000 7.42%, 1998 512,275 ------------ 7,302,506 ------------ FOOD & BEVERAGES (4.5%) ConAgra, Inc. 500,000 9.75%, 1997 533,695 Grand Metropolitan Investment Corp. 500,000 8.125%, 1996 510,105 Nabisco Brands Inc. 500,000 8.00%, 2000 523,780 Seagram Company Ltd. 500,000 9.75%, 2000 512,335 ------------ 2,079,915 ------------ INSURANCE (.9%) SunAmerica Inc. 370,000 9.00%, 1999 395,223 ------------ LEASING (2.2%) Penske Truck Leasing Co. 500,000 7.75%, 1999 513,675 U.S. Leasing International Inc. 500,000 7.00%, 1997 507,250 ------------ 1,020,925 ------------ LEISURE & ENTERTAINMENT (.5%) Blockbuster Entertainment Corp. 250,000 6.625%, 1998 248,398 ------------ MACHINERY & EQUIPMENT (1.1%) Caterpillar Financial Services Corp. 500,000 6.85%, 1997 505,230 ------------ MANUFACTURING (.6%) First Brands Corp. 265,000 9.125%, 1999 274,164 ------------ MORTGAGE-BACKED SECURITIES (5.8%) American Southwest Financial Corp. 1,624,603 8.25%, 2016 1,627,649 GE Capital Mortgage Services, Inc. 152,509 6.50%, 2024 152,079 Housing Securities, Inc. 227,396 7.25%, 2012 227,112
3 The accompanying notes are an integral part of these financial statements. INCOME ACCOUNT (cont'd)
PRINCIPAL MARKET AMOUNT SECURITY VALUE Ryland Mortgage Securities Corp. $ 426,648 8.339%, 2030 $ 423,182 Salomon Brothers, Inc. 263,007 0.00%, 2017 187,637 177,728 12.50%, 2017 43,543 ------------ 2,661,202 ------------ OFFICE EQUIPMENT (.6%) Xerox Corp. 270,000 9.20%, 1999 277,104 ------------ OIL & GAS (8.6%) Arkla, Inc. 505,000 9.875%, 1997 525,200 BP America Inc. 500,000 8.875%, 1997 529,570 Bridas Corp. 250,000 12.50%, 1999 225,625 Coastal Corp. 500,000 8.75%, 1999 532,955 El Paso Natural Gas Co. 250,000 6.90%, 1997 252,230 Empresa Columbia de Petroleos 250,000 7.25%, 1998 248,125 Florida Gas Transmission Co. 500,000 7.75%, 1997 513,675 Occidental Petroleum Corp. 500,000 6.43%, 1997 499,055 Phillips Petroleum Co. 474,163 7.53%, 1998 483,461 Transcontinental Gas Pipe Line Corp. 150,000 9.00%, 1996 155,065 ------------ 3,964,961 ------------ PAPER & FOREST PRODUCTS (1.9%) Celulosa Arauco y Constitucion SA 350,000 7.25%, 1998 350,875 Georgia-Pacific Corp. 500,000 9.85%, 1997 529,880 ------------ 880,755 ------------ PRINTING & PUBLISHING (2.2%) Reed Publishing USA Inc. 500,000 7.20%, 1997 508,375 Time Warner Inc. 500,000 7.45%, 1998 504,035 ------------ 1,012,410 ------------ RETAIL TRADE (2.7%) Kmart Corp. 500,000 8.61%, 1997 516,370 Sears, Roebuck & Co. 200,000 9.44%, 1996 204,900 500,000 8.39%, 1999 530,580 ------------ 1,251,850 ------------ PRINCIPAL MARKET AMOUNT SECURITY VALUE SAVINGS & LOAN (1.1%) Golden West Financial Corp. $ 500,000 8.625%, 1998 $ 528,925 ------------ TELECOMMUNICATIONS (1.3%) Tele-Communications, Inc. 615,000 5.28%, 1996 607,522 ------------ TELEPHONE UTILITIES (2.3%) GTE Corp. 500,000 8.85%, 1998 527,595 MCI Communications Corp. 500,000 7.625%, 1996 508,645 ------------ 1,036,240 ------------ TOBACCO (2.2%) B.A.T Capital Corp. 500,000 6.66%, 2000 488,900 Philip Morris Companies Inc. 500,000 8.75%, 1996 516,130 ------------ 1,005,030 ------------ TRANSPORTATION (1.1%) Federal Express Corp. 500,000 9.75%, 1996 513,670 ------------ TOTAL CORPORATE BONDS (COST $39,041,898) 38,374,067 ------------ U.S. GOVERNMENT & AGENCY LONG-TERM OBLIGATIONS (10.7% OF NET ASSETS) Federal Home Loan Mortgage Corp. 169,307 5.50%, 1997 166,820 505,197 5.50%, 1998 497,777 Federal National Mortgage Assn. 872,111 7.50%, 2008 886,553 873,484 7.00%, 2009 875,667 816,947 8.00%, 2009 840,173 250,000 6.00%, 2019 242,968 Government National Mortgage Assn. 397,717 7.00%, 2009 399,578 46,223 13.00%, 2014 52,261 U.S. Treasury Note 1,000,000 5.25%, 1998 981,090 ------------ TOTAL U.S. GOVERNMENT & AGENCY LONG-TERM OBLIGATIONS (COST $4,889,313) 4,942,887 ------------ COMMERCIAL PAPER (4.3% OF NET ASSETS) Wal-Mart Stores Inc. 6.15%, due 7/3/95 (COST $1,984,322) 1,984,322 1,985,000 ------------ TOTAL INVESTMENTS (COST $45,915,533) $ 45,301,276 ------------ ------------
4 TOTAL RETURN ACCOUNT
NUMBER OF MARKET SHARES SECURITY VALUE COMMON STOCKS (38.7% OF NET ASSETS) AEROSPACE (4.4%) 22,600 General Dynamics Corp. $ 1,002,875 28,100 General Motors Corp. Class H 1,109,950 35,371 Lockheed Martin Corp. 2,232,794 37,600 Loral Corp. 1,945,800 19,000 McDonnell Douglas Corp. 1,458,250 26,900 Rockwell International Corp. 1,230,675 ------------ 8,980,344 ------------ AIRLINES (1.8%) 16,100 AMR Corp. 1,201,462 22,300 Delta Air Lines, Inc. 1,644,625 25,100 Northwest Airlines Corp. 887,912 ------------ 3,733,999 ------------ BANKING (2.1%) 18,600 Bank of New York Co., Inc. 750,975 26,500 Chase Manhattan Corp. 1,245,500 21,300 Morgan (J.P.) & Company, Inc. 1,493,663 4,600 Wells Fargo & Co. 829,150 ------------ 4,319,288 ------------ BUILDING MATERIALS & CONSTRUCTION (.1%) 11,500 USG Corp. 273,125 ------------ CHEMICALS (2.0%) 13,000 FMC Corp. 874,250 28,800 Grace (W.R.) & Co. 1,767,600 15,700 Monsanto Co. 1,414,963 ------------ 4,056,813 ------------ CONGLOMERATES (1.0%) 21,000 AlliedSignal Inc. 934,500 17,600 Textron, Inc. 1,023,000 ------------ 1,957,500 ------------ DRUGS & COSMETICS (.4%) 9,500 American Home Products Corp. 735,062 ------------ ELECTRIC UTILITIES (1.8%) 37,300 FPL Group, Inc. 1,440,712 45,600 Illinova Corp. 1,157,100 41,000 Unicom Corp. 1,091,625 ------------ 3,689,437 ------------ ELECTRICAL & ELECTRONIC EQUIPMENT (.5%) 18,500 Micron Technology Inc. 1,015,188 ------------ FOOD & BEVERAGES (.9%) 60,422 Archer Daniels Midland Co. 1,125,360 30,200 Ralcorp Holdings, Inc. 690,825 ------------ 1,816,185 ------------ NUMBER OF MARKET SHARES SECURITY VALUE HEALTH SERVICES & HOSPITAL SUPPLIES (1.5%) 49,100 Baxter International Inc. $ 1,786,013 28,700 Columbia Healthcare Corp. 1,241,275 ------------ 3,027,288 ------------ INSURANCE (3.4%) 26,500 Aetna Life & Casualty Co. 1,666,187 35,100 American General Corp. 1,184,625 18,500 Lincoln National Corp. 809,375 15,300 St. Paul Companies Inc. 753,525 36,100 TIG Holdings, Inc. 830,300 39,200 Travelers Group 1,715,000 ------------ 6,959,012 ------------ LEISURE RELATED (.8%) 19,300 Grand Casinos, Inc. 682,738 37,675 Mattel, Inc. 979,550 ------------ 1,662,288 ------------ MACHINERY & EQUIPMENT (1.3%) 15,700 Caterpillar Inc. 1,008,725 33,390 Mark IV Industries, Inc. 717,885 25,650 Parker-Hannifin Corp. 929,812 ------------ 2,656,422 ------------ MANUFACTURING (.8%) 25,300 Black & Decker Corp. 781,138 18,000 Philips Electronics NV 769,500 ------------ 1,550,638 ------------ METALS & MINING (1.1%) 19,800 IMC Global Inc. 1,071,675 Potash Corporation of Saskatchewan 19,800 Inc. 1,106,325 ------------ 2,178,000 ------------ MISCELLANEOUS (1.5%) 57,300 Dial Corp. 1,418,175 30,500 Premark International, Inc. 1,582,188 ------------ 3,000,363 ------------ OFFICE EQUIPMENT (.6%) 11,200 Xerox Corp. 1,313,200 ------------ OIL & GAS (3.4%) 18,300 Amoco Corp. 1,219,238 26,400 Chevron Corp. 1,230,900 14,800 Mobil Corp. 1,420,800 71,200 Panhandle Eastern Corp. 1,735,500 10,400 Royal Dutch Petroleum Co. 1,267,500 ------------ 6,873,938 ------------ PAPER & FOREST PRODUCTS (1.8%) 9,500 Georgia-Pacific Corp. 824,125 31,200 Scott Paper Co. 1,544,400
5 The accompanying notes are an integral part of these financial statements. TOTAL RETURN ACCOUNT (cont'd)
NUMBER OF MARKET SHARES SECURITY VALUE 22,000 Willamette Industries, Inc. $ 1,221,000 ------------ 3,589,525 ------------ RETAIL TRADE (2.5%) 45,900 American Stores Co. 1,290,937 18,900 Eckerd Corp. 604,800 49,700 Kroger Co. 1,335,688 30,400 Sears, Roebuck & Co. 1,820,200 ------------ 5,051,625 ------------ TECHNOLOGY (2.0%) 9,800 Applied Materials Inc. 848,925 17,100 Compaq Computer Corp. 775,912 Computer Associates International, 13,200 Inc. 894,300 International Business Machines 15,900 Corp. 1,526,400 ------------ 4,045,537 ------------ TELEPHONE UTILITIES (1.7%) 31,400 Ameritech Corp. 1,381,600 31,000 GTE Corp. 1,057,875 27,200 NYNEX Corp. 1,094,800 ------------ 3,534,275 ------------ TOBACCO (1.3%) 28,800 American Brands, Inc. 1,144,800 18,700 Philip Morris Companies Inc. 1,390,812 ------------ 2,535,612 ------------ TOTAL COMMON STOCKS (COST $64,331,079) 78,554,664 ------------ PRINCIPAL CORPORATE BONDS AMOUNT (20.8% OF NET ASSETS) AEROSPACE (.4%) British Aerospace Finance Inc. $ 500,000 8.00%, 1997 513,750 Coltec Industries, Inc. 250,000 9.75%, 2000 258,750 ------------ 772,500 ------------ AUTO & AUTO RELATED (.2%) Burmah Castrol Capital, Ltd. 500,000 7.00%, 1997 508,525 ------------ BANKING (2.5%) Bank of Boston Corp. 500,000 10.30%, 2000 502,890 BankAmerica Corp. 500,000 6.00%, 1997 496,525 Chemical Banking Corp. 250,000 10.125%, 2000 285,820 First Fidelity Bancorporation 500,000 8.50%, 1998 524,650 PRINCIPAL MARKET AMOUNT SECURITY VALUE First USA Bank of Delaware $ 500,000 5.05%, 1995 $ 497,375 750,000 5.35%, 1996 713,550 Fleet Financial Group, Inc. 250,000 9.90%, 2001 285,345 Marshall & Ilsley Corp. 500,000 6.95%, 1997 506,970 Mellon Financial Co. 400,000 6.50%, 1997 401,740 Shawmut National Corp. 750,000 8.875%, 1996 762,975 ------------ 4,977,840 ------------ CHEMICALS (1.3%) FMC Corp. 500,000 8.75%, 1999 532,380 Lyondell Petrochemical Co. 1,100,000 8.25%, 1997 1,124,288 Morton International, Inc. 500,000 9.25%, 2020 613,510 PPG Industries, Inc. 250,000 9.00%, 2021 296,102 ------------ 2,566,280 ------------ COMPUTER BUSINESS EQUIPMENT & SERVICES (.4%) Unisys Corp. 750,000 9.75%, 1996 766,875 ------------ CONGLOMERATES (.5%) Tenneco Credit Corp. 500,000 9.25%, 1996 517,255 Tenneco, Inc. 375,000 10.00%, 1998 409,358 ------------ 926,613 ------------ DRUGS & COSMETICS (.5%) Procter & Gamble Co. 250,000 9.36%, 2021 304,637 Roche Holdings Inc. 950,000 2.75%, 2000 808,688 ------------ 1,113,325 ------------ ELECTRIC UTILITIES (.7%) Hydro-Quebec 500,000 9.375%, 2030 595,605 Long Island Lighting Co. 500,000 8.75%, 1996 508,750 Public Service Co. of New Hampshire 250,000 8.875%, 1996 254,353 ------------ 1,358,708 ------------
6 TOTAL RETURN ACCOUNT (cont'd)
PRINCIPAL MARKET AMOUNT SECURITY VALUE ELECTRICAL & ELECTRONIC EQUIPMENT (.5%) Electrolux $ 500,000 7.75%, 1997 $ 511,875 Westinghouse Electric Corp. 500,000 7.75%, 1996 503,065 ------------ 1,014,940 ------------ FINANCIAL SERVICES (5.3%) American General Finance Corp. 500,000 7.70%, 1997 514,585 500,000 8.50%, 1998 529,015 Aristar, Inc. 500,000 6.25%, 1996 499,990 250,000 8.125%, 1997 259,777 Associates Corp. of North America 500,000 6.75%, 1999 503,895 Avco Financial Services, Inc. 500,000 5.875%, 1997 495,300 Countrywide Funding Corp. 250,000 6.57%, 1997 251,005 500,000 6.085%, 1999 491,290 Discover Credit Corp. 500,000 8.73%, 1996 512,430 Fleet Mortgage Corp. 1,000,000 6.125%, 1997 994,070 250,000 6.50%, 1999 248,640 Ford Motor Credit Co. 500,000 8.00%, 1997 518,145 500,000 6.25%, 1998 498,710 General Motors Acceptance Corp. 1,000,000 5.65%, 1997 982,640 750,000 7.75%, 1997 766,320 Green Tree Financial Corp. 500,000 8.00%, 2020 521,560 Household Financial Corporation Ltd. 250,000 6.00%, 1998 246,908 Household International Netherlands B.V. 500,000 6.00%, 1999 491,825 ITT Financial Corp. 250,000 8.75%, 2006 268,993 Norwest Financial, Inc. 500,000 6.50%, 1997 502,450 Transamerica Finance Corp. 500,000 6.75%, 1997 503,965 250,000 6.80%, 1999 252,465 ------------ 10,853,978 ------------ FOOD & BEVERAGES (1.1%) Bass America Inc. 250,000 6.75%, 1999 252,217 PRINCIPAL MARKET AMOUNT SECURITY VALUE ConAgra, Inc. $ 500,000 9.75%, 1997 $ 533,695 Nabisco Brands Inc. 500,000 8.00%, 2000 523,780 Seagram Company Ltd. 950,000 9.75%, 2000 973,436 ------------ 2,283,128 ------------ INSURANCE (.2%) SunAmerica Inc. 450,000 9.00%, 1999 480,677 ------------ LEASING (.8%) Penske Truck Leasing Co. 750,000 7.75%, 1999 770,513 PHH Corp. 350,000 6.50%, 2000 348,709 U.S. Leasing International Inc. 500,000 7.00%, 1997 507,250 ------------ 1,626,472 ------------ LEISURE & ENTERTAINMENT (.2%) Blockbuster Entertainment Corp. 500,000 6.625%, 1998 496,795 ------------ MANUFACTURING (.2%) Black & Decker Corp. 400,000 6.625%, 2000 394,040 ------------ MORTGAGE-BACKED SECURITIES (.3%) Fleet Mortgage Securities, Inc. 153,076 8.25%, 2023 153,075 Housing Securities, Inc. 363,833 7.25%, 2012 363,379 ------------ 516,454 ------------ OIL & GAS (2.5%) Arkla, Inc. 750,000 9.875%, 1997 780,000 BP America, Inc. 500,000 8.875%, 1997 529,570 Bridas Corp. 270,000 12.50%, 1999 243,675 Coastal Corp. 500,000 8.125%, 2002 526,220 Norsk Hydro 500,000 8.75%, 2001 549,062 Petroliam Nasional Berhad 500,000 6.875%, 2003 499,920 Phillips Petroleum Co. 948,326 7.53%, 1998 966,922 TransCanada Pipelines Ltd. 500,000 9.875%, 2021 628,375 Transco Energy Co. 250,000 9.625%, 2000 280,565 ------------ 5,004,309 ------------
7 The accompanying notes are an integral part of these financial statements. TOTAL RETURN ACCOUNT (cont'd)
PRINCIPAL MARKET AMOUNT SECURITY VALUE PAPER & FOREST PRODUCTS (.6%) Celulosa Arauco y Constitucion SA $ 500,000 7.25%, 1998 $ 501,250 Georgia-Pacific Corp. 750,000 9.85%, 1997 794,820 ------------ 1,296,070 ------------ PRINTING & PUBLISHING (.5%) Reed Elsevier, Inc. 400,000 6.625%, 2023 360,388 Time Warner Inc. 700,000 7.45%, 1998 705,649 ------------ 1,066,037 ------------ RETAIL TRADE (.2%) Sears, Roebuck & Co. 300,000 8.39%, 1999 318,348 ------------ SAVINGS & LOAN (.3%) Golden West Financial Corp. 500,000 10.25%, 1997 531,970 ------------ TELECOMMUNICATIONS (.2%) Tele-Communications, Inc. 400,000 7.15%, 1998 404,412 ------------ TELEPHONE UTILITIES (.6%) GTE Corp. 750,000 8.85%, 1998 791,393 MCI Communications Corp. 500,000 7.125%, 2000 512,780 ------------ 1,304,173 ------------ TOBACCO (.3%) Philip Morris Companies Inc. 500,000 8.75%, 1996 516,130 ------------ TRANSPORTATION (.5%) Federal Express Corp. 750,000 9.75%, 1996 770,505 250,000 6.25%, 1998 248,115 ------------ 1,018,620 ------------ TOTAL CORPORATE BONDS (COST $41,824,531) 42,117,219 ------------ U.S. GOVERNMENT & AGENCY LONG-TERM OBLIGATIONS (14.3% OF NET ASSETS) Federal Home Loan Mortgage Corp. 1,000,000 6.00%, 2007 927,180 Federal National Mortgage Assn. 1,288,885 7.50%, 2008 1,310,229 800,000 6.00%, 2019 777,496 630,973 7.00%, 2022 547,369 Government National Mortgage Assn. 680,968 7.00%, 2009 684,155 979,208 7.50%, 2009 997,871 606,893 8.00%, 2017 625,203 PRINCIPAL MARKET AMOUNT SECURITY VALUE $ 209,596 9.00%, 2018 $ 221,496 294,868 9.00%, 2019 310,726 306,072 9.00%, 2021 323,451 258,677 9.00%, 2022 272,588 2,566,997 6.50%, 2023 2,465,909 285,601 8.50%, 2023 296,488 3,705,272 6.50%, 2024 3,559,358 4,599,878 7.00%, 2024 4,526,556 U.S. Treasury Bonds 650,000 7.50%, 2016 707,688 8,250,000 8.75%, 2017 10,144,943 U.S. Treasury Note 300,000 5.75%, 2003 290,859 ------------ TOTAL U.S. GOVERNMENT & AGENCY LONG-TERM OBLIGATIONS (COST $27,188,364) 28,989,565 ------------ FOREIGN GOVERNMENT BONDS (.7% OF NET ASSETS) Fomento Economico Mexicano 450,000 9.50%, 1997 429,750 Republic of Columbia 300,000 7.125%, 1998 294,750 400,000 8.75%, 1999 414,000 United Mexican States 250,000 6.97%, 2000 180,000 ------------ TOTAL FOREIGN GOVERNMENT BONDS (COST $1,387,071) 1,318,500 ------------ COMMERCIAL PAPER (25.2% OF NET ASSETS) Armstrong World Industries Inc. 4,100,000 5.97%, due 7/18/95 4,088,441 Beneficial Corp. 1,700,000 5.95%, due 7/17/95 1,695,505 Cargill, Inc. 3,630,000 5.92%, due 7/7/95 3,626,418 Corporate Receivables Corp. 2,000,000 6.00%, due 7/19/95 1,994,000 Dayton Hudson Corp. 2,000,000 6.00%, due 7/21/95 1,993,333 Ford Motor Credit Co. 5,065,000 5.97%, due 7/12/95 5,065,000 1,914,000 5.96%, due 7/17/95 1,914,000 GTE Florida, Inc. 4,000,000 6.00%, due 7/20/95 3,987,333 Hewlett Packard Finance Co. 3,000,000 5.95%, due 7/11/95 2,995,042 Merrill Lynch & Co., Inc. 2,880,000 5.98%, due 7/6/95 2,877,608 4,025,000 5.97%, due 7/13/95 4,016,990 PACCAR Financial Corp. 2,380,000 5.95%, due 7/5/95 2,378,427 3,000,000 5.97%, due 7/14/95 2,993,533
8 TOTAL RETURN ACCOUNT (cont'd)
PRINCIPAL MARKET AMOUNT SECURITY VALUE PHH Corp. $ 1,605,000 5.97%, due 7/6/95 $ 1,603,669 Public Service Electric and Gas Co. 3,050,000 5.97%, due 7/10/95 3,045,448 U.S. Central Credit Union 2,885,000 5.98%, due 7/5/95 2,883,083 Xerox Corp. 3,895,000 5.96%, due 7/13/95 3,887,262 ------------ TOTAL COMMERCIAL PAPER (COST $51,045,092) 51,045,092 ------------ TOTAL INVESTMENTS (COST $185,776,137) $202,025,040 ------------ ------------
GROWTH ACCOUNT
NUMBER OF MARKET SHARES SECURITY VALUE COMMON STOCKS (90.8% OF NET ASSETS) AEROSPACE (10.8%) 25,400 General Dynamics Corp. $ 1,127,125 36,000 General Motors Corp. Class H 1,422,000 35,371 Lockheed Martin Corp. 2,232,794 41,700 Loral Corp. 2,157,975 24,500 McDonnell Douglas Corp. 1,880,375 38,400 Rockwell International Corp. 1,756,800 ------------ 10,577,069 ------------ AIRLINES (4.3%) 20,400 AMR Corp. 1,522,350 22,500 Delta Air Lines, Inc. 1,659,375 30,000 Northwest Airlines Corp. 1,061,250 ------------ 4,242,975 ------------ BANKING (5.0%) 18,600 Bank of New York Co., Inc. 750,975 23,800 Chase Manhattan Corp. 1,118,600 27,100 Morgan (J.P.) & Company, Inc. 1,900,388 6,300 Wells Fargo & Co. 1,135,575 ------------ 4,905,538 ------------ BUILDING MATERIALS & CONSTRUCTION (.4%) 14,800 USG Corp. 351,500 ------------ CHEMICALS (4.5%) 14,600 FMC Corp. 981,850 28,700 Grace (W.R.) & Co. 1,761,462 18,800 Monsanto Co. 1,694,350 ------------ 4,437,662 ------------ CONGLOMERATES (2.6%) 24,700 AlliedSignal Inc. 1,099,150 NUMBER OF MARKET SHARES SECURITY VALUE 24,000 Textron, Inc. $ 1,395,000 ------------ 2,494,150 ------------ DRUGS & COSMETICS (.8%) 9,900 American Home Products Corp. 766,013 ------------ ELECTRIC UTILITIES (4.1%) 35,600 FPL Group, Inc. 1,375,050 49,400 Illinova Corp. 1,253,525 52,300 Unicom Corp. 1,392,487 ------------ 4,021,062 ------------ ELECTRICAL & ELECTRONIC EQUIPMENT (1.2%) 21,000 Micron Technology Inc. 1,152,375 ------------ FOOD & BEVERAGES (2.1%) 71,115 Archer Daniels Midland Co. 1,324,517 30,100 Ralcorp Holdings, Inc. 688,538 ------------ 2,013,055 ------------ HEALTH SERVICES & HOSPITAL SUPPLIES (3.3%) 50,700 Baxter International Inc. 1,844,212 32,700 Columbia Healthcare Corp. 1,414,275 ------------ 3,258,487 ------------ INSURANCE (8.1%) 24,000 Aetna Life & Casualty Co. 1,509,000 51,300 American General Corp. 1,731,375 22,200 Lincoln National Corp. 971,250 22,700 St. Paul Companies Inc. 1,117,975 36,400 TIG Holdings, Inc. 837,200 39,500 Travelers Group 1,728,125 ------------ 7,894,925 ------------ LEISURE RELATED (1.8%) 23,300 Grand Casinos, Inc. 824,238 35,968 Mattel, Inc. 935,168 ------------ 1,759,406 ------------ MACHINERY & EQUIPMENT (3.2%) 17,400 Caterpillar Inc. 1,117,950 38,955 Mark IV Industries, Inc. 837,533 31,100 Parker-Hannifin Corp. 1,127,375 ------------ 3,082,858 ------------ MANUFACTURING (2.0%) 30,000 Black & Decker Corp. 926,250 23,300 Philips Electronics NV 996,075 ------------ 1,922,325 ------------ METALS & MINING (2.7%) 24,400 IMC Global Inc. 1,320,650 Potash Corporation of Saskatchewan 24,100 Inc. 1,346,588 ------------ 2,667,238 ------------
9 The accompanying notes are an integral part of these financial statements. GROWTH ACCOUNT (cont'd)
NUMBER OF MARKET SHARES SECURITY VALUE MISCELLANEOUS (3.1%) 64,900 Dial Corp. $ 1,606,275 27,600 Premark International, Inc. 1,431,750 ------------ 3,038,025 ------------ OFFICE EQUIPMENT (1.5%) 12,700 Xerox Corp. 1,489,075 ------------ OIL & GAS (7.9%) 22,400 Amoco Corp. 1,492,400 32,200 Chevron Corp. 1,501,325 16,700 Mobil Corp. 1,603,200 73,100 Panhandle Eastern Corp. 1,781,812 10,600 Royal Dutch Petroleum Co. 1,291,875 ------------ 7,670,612 ------------ PAPER & FOREST PRODUCTS (3.8%) 10,800 Georgia-Pacific Corp. 936,900 28,200 Scott Paper Co. 1,395,900 24,600 Willamette Industries, Inc. 1,365,300 ------------ 3,698,100 ------------ RETAIL TRADE (6.1%) 55,700 American Stores Co. 1,566,562 21,600 Eckerd Corp. 691,200 52,300 Kroger Co. 1,405,563 38,000 Sears, Roebuck & Co. 2,275,250 ------------ 5,938,575 ------------ TECHNOLOGY (4.8%) 11,700 Applied Materials Inc. 1,013,512 22,100 Compaq Computer Corp. 1,002,787 Computer Associates International, 12,100 Inc. 819,775 NUMBER OF MARKET SHARES SECURITY VALUE International Business Machines 19,700 Corp. $ 1,891,200 ------------ 4,727,274 ------------ TELEPHONE UTILITIES (4.1%) 33,000 Ameritech Corp. 1,452,000 36,900 GTE Corp. 1,259,213 32,700 NYNEX Corp. 1,316,175 ------------ 4,027,388 ------------ TOBACCO (2.6%) 28,500 American Brands, Inc. 1,132,875 18,800 Philip Morris Companies Inc. 1,398,250 ------------ 2,531,125 ------------ TOTAL COMMON STOCKS (COST $71,945,181) 88,666,812 ------------ PRINCIPAL COMMERCIAL PAPER AMOUNT (9.6% OF NET ASSETS) Armstrong World Industries Inc. $ 2,420,000 6.03%, due 7/11/95 2,415,946 CSW Credit, Inc. 2,200,000 6.00%, due 7/6/95 2,198,167 International Lease Finance Corp. 1,220,000 6.00%, due 7/5/95 1,219,187 Merrill Lynch & Co., Inc. 2,000,000 6.00%, due 7/7/95 1,998,000 U S West Communications, Inc. 1,540,000 5.97%, due 7/10/95 1,537,701 ------------ TOTAL COMMERCIAL PAPER (COST $9,369,001) 9,369,001 ------------ TOTAL INVESTMENTS (COST $81,314,182) $ 98,035,813 ------------ ------------
NOTES TO SCHEDULE OF INVESTMENTS June 30, 1995 (Unaudited) A C C O U N T S 1. Aggregate gross unrealized appreciation (depreciation) as of June 30, 1995, based on cost for Federal income tax purposes, was as GOVERNMENT TOTAL follows: LIQUID SECURITIES INCOME RETURN GROWTH Aggregate gross unrealized appreciation $ -- $ 1,077,858 $ 316,314 $ 16,947,234 $16,779,774 Aggregate gross unrealized depreciation -- (367,620) (930,571) (698,331) (58,143) ------------ ------------ ------------ ------------- ------------ Net unrealized appreciation (depreciation) $ -- $ 710,238 $ (614,257) $ 16,248,903 $16,721,631 ------------ ------------ ------------ ------------- ------------ ------------ ------------ ------------ ------------- ------------ 2. The aggregate cost of investments for Federal income tax purposes was: $63,762,744 $50,109,117 $45,915,533 $185,776,137 $81,314,182 ------------ ------------ ------------ ------------- ------------ ------------ ------------ ------------ ------------- ------------ 3. Purchases and sales of securities (excluding short-term securities) for the six months ended June 30, 1995 are summarized as follows: Purchases $ -- $15,982,930 $ 8,377,048 $ 42,898,643 $35,140,419 Sales $ -- $27,933,247 $10,605,131 $ 74,114,376 $29,874,172
10 STATEMENT OF NET ASSETS CONNECTICUT MUTUAL INVESTMENT ACCOUNTS, INC. June 30, 1995 (Unaudited)
A C C O U N T S GOVERNMENT TOTAL LIQUID SECURITIES INCOME RETURN GROWTH ASSETS Investments: Bonds, at market value (Cost $49,799,117, $43,931,211, $70,399,966) $ -- $50,509,355 $43,316,954 $ 72,425,284 $ -- Common stocks, at market value (Cost $64,331,079, $71,945,181) -- -- -- 78,554,664 88,666,812 Short-term securities 63,762,744 310,000 1,984,322 51,045,092 9,369,001 ------------ ------------ ------------ ------------- ------------ 63,762,744 50,819,355 45,301,276 202,025,040 98,035,813 Cash 2,853 1,393 9,863 8,746 5,339 Investment income receivable 80,093 1,033,935 794,292 1,224,367 214,040 Receivable from securities sold -- -- -- 588,984 636,602 Receivable from Fund shares sold 117,807 28,911 48,828 59,956 50,401 ------------ ------------ ------------ ------------- ------------ Total Assets 63,963,497 51,883,594 46,154,259 203,907,093 98,942,195 ------------ ------------ ------------ ------------- ------------ LIABILITIES Accrued expenses payable 91,408 113,406 45,371 334,009 167,379 Payable for securities purchased -- 511,720 -- 855,457 1,083,336 Dividends payable 8,306 -- -- -- -- Total Liabilities 99,714 625,126 45,371 1,189,466 1,250,715 ------------ ------------ ------------ ------------- ------------ NET ASSETS $63,863,783 $51,258,468 $46,108,888 $202,717,627 $97,691,480 ------------ ------------ ------------ ------------- ------------ ------------ ------------ ------------ ------------- ------------ OUTSTANDING SHARES 63,863,783 4,907,718 4,882,627 13,611,392 5,874,382 ------------ ------------ ------------ ------------- ------------ ------------ ------------ ------------ ------------- ------------ NET ASSET VALUE PER SHARE $1.00 $10.44 $9.44 $14.89 $16.63 ----- ------ ----- ------ ------ ----- ------ ----- ------ ------ NET ASSETS CONSIST OF: Capital (par value and paid-in surplus) $63,863,783 $53,921,691 $48,871,786 $183,199,804 $78,476,370 Undistributed net investment income -- 72,169 36,057 128,739 67,221 Accumulated undistributed net realized gain (loss) -- (3,445,630) (2,184,698) 3,140,181 2,426,258 Net unrealized appreciation (depreciation) -- 710,238 (614,257) 16,248,903 16,721,631 ------------ ------------ ------------ ------------- ------------ NET ASSETS $63,863,783 $51,258,468 $46,108,888 $202,717,627 $97,691,480 ------------ ------------ ------------ ------------- ------------ ------------ ------------ ------------ ------------- ------------
11 The accompanying notes are an integral part of these financial statements. STATEMENT OF OPERATIONS CONNECTICUT MUTUAL INVESTMENT ACCOUNTS, INC. For the six months ended June 30, 1995 (Unaudited)
A C C O U N T S GOVERNMENT TOTAL LIQUID SECURITIES INCOME RETURN GROWTH INVESTMENT INCOME Income: Interest $2,021,301 $2,382,456 $1,807,409 $ 4,146,518 $ 276,503 Dividends -- -- -- 945,743 1,016,400 ----------- ----------- ----------- ------------ ------------ Total Income 2,021,301 2,382,456 1,807,409 5,092,261 1,292,903 ----------- ----------- ----------- ------------ ------------ Expenses: Investment advisory fees 165,853 183,692 145,711 586,971 271,369 Transfer agent fees 99,800 45,100 30,200 189,400 91,700 Distribution fees -- -- -- 83,049 39,540 Registration fees 16,750 15,250 14,250 21,750 18,250 Custodian fees 14,000 12,475 13,500 22,450 17,900 Shareholder reports 5,000 5,500 4,000 20,000 10,000 Professional services 7,700 6,050 5,500 24,200 11,550 Directors' fees 2,100 1,900 1,710 5,220 2,820 Other 116 5,158 -- 18,954 13,291 Expense reimbursement from investment adviser -- -- (69,160) -- -- ----------- ----------- ----------- ------------ ------------ Total Expenses 311,319 275,125 145,711 971,994 476,420 ----------- ----------- ----------- ------------ ------------ NET INVESTMENT INCOME 1,709,982 2,107,331 1,661,698 4,120,267 816,483 ----------- ----------- ----------- ------------ ------------ REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS Net realized gain (loss) on investments 2 (592,478) (486,025) 2,607,488 1,898,129 Net unrealized appreciation on investments -- 4,666,776 2,054,379 16,532,094 11,899,886 ----------- ----------- ----------- ------------ ------------ NET REALIZED AND UNREALIZED GAIN ON INVESTMENTS 2 4,074,298 1,568,354 19,139,582 13,798,015 ----------- ----------- ----------- ------------ ------------ NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS $1,709,984 $6,181,629 $3,230,052 $23,259,849 $14,614,498 ----------- ----------- ----------- ------------ ------------ ----------- ----------- ----------- ------------ ------------
The accompanying notes are an integral part of these financial statements. 12 STATEMENT OF CHANGES IN NET ASSETS CONNECTICUT MUTUAL INVESTMENT ACCOUNTS, INC. For the six months ended June 30, 1995 (Unaudited) and the year ended December 31, 1994
A C C O U N T S LIQUID GOVERNMENT SECURITIES 1995 1994 1995 1994 INCREASE (DECREASE) IN NET ASSETS FROM OPERATIONS: Net investment income $ 1,709,982 $ 2,575,968 $ 2,107,331 $ 4,942,102 Net realized gain (loss) on investments 2 (987) (592,478) (2,822,974) Net unrealized appreciation (depreciation) -- -- 4,666,776 (5,366,869) ------------- -------------- ------------- ------------- Net increase (decrease) in net assets resulting from operations 1,709,984 2,574,981 6,181,629 (3,247,741) ------------- -------------- ------------- ------------- DIVIDENDS TO SHAREHOLDERS FROM: Net investment income (1,709,984) (2,574,981) (2,067,140) (4,939,034) Net realized gain from investment transactions -- -- -- (56,279) ------------- -------------- ------------- ------------- (1,709,984) (2,574,981) (2,067,140) (4,995,313) ------------- -------------- ------------- ------------- FROM CAPITAL SHARE TRANSACTIONS: Net proceeds from sale of shares 87,303,939 177,469,640 1,630,430 7,468,147 Net asset value of shares issued to shareholders from reinvestment of dividends 1,674,793 2,548,202 1,834,042 4,527,905 Cost of shares reacquired (89,060,819) (192,692,366) (16,482,832) (21,186,898) ------------- -------------- ------------- ------------- Increase (decrease) in net assets derived from capital share transactions (82,087) (12,674,524) (13,018,360) (9,190,846) ------------- -------------- ------------- ------------- NET INCREASE (DECREASE) IN NET ASSETS (82,087) (12,674,524) (8,903,871) (17,433,900) NET ASSETS -- BEGINNING OF PERIOD 63,945,870 76,620,394 60,162,339 77,596,239 ------------- -------------- ------------- ------------- NET ASSETS -- END OF PERIOD $ 63,863,783 $ 63,945,870 $ 51,258,468 $ 60,162,339 ------------- -------------- ------------- ------------- ------------- -------------- ------------- ------------- Undistributed net investment income included in net assets at end of period -- -- $72,169 $31,978 ------------- ------------- ------------- ------------- Undistributed net realized gain (loss) on investments included in net assets at end of period -- -- $(3,445,628) $(2,853,150) ------------- ------------- ------------- -------------
13
A C C O U N T S INCOME TOTAL RETURN GROWTH 1995 1994 1995 1994 1995 1994 INCREASE (DECREASE) IN NET ASSETS FROM OPERATIONS: Net investment income $ 1,661,698 $ 3,484,675 $ 4,120,267 $ 7,127,925 $ 816,483 $ 1,077,298 Net realized gain (loss) on investments (486,025) (660,384) 2,607,488 2,872,138 1,898,129 3,074,097 Net unrealized appreciation (depreciation) 2,054,379 (3,054,974) 16,532,094 (14,089,642) 11,899,886 (4,619,868) ------------ ------------- ------------- ------------- ------------ ------------ Net increase (decrease) in net assets resulting from operations 3,230,052 (230,683) 23,259,849 (4,089,579) 14,614,498 (468,473) ------------ ------------- ------------- ------------- ------------ ------------ DIVIDENDS TO SHAREHOLDERS FROM: Net investment income (1,643,000) (3,473,505) (4,036,099) (7,098,435) (750,655) (1,076,035) Net realized gain from investment transactions -- -- -- (3,186,699) -- (3,254,775) ------------ ------------- ------------- ------------- ------------ ------------ (1,643,000) (3,473,505) (4,036,099) (10,285,134) (750,655) (4,330,810) ------------ ------------- ------------- ------------- ------------ ------------ FROM CAPITAL SHARE TRANSACTIONS: Net proceeds from sale of shares 3,779,052 11,501,443 14,787,890 52,357,416 9,109,416 20,893,600 Net asset value of shares issued to shareholders from reinvestment of dividends 1,405,785 3,019,579 3,941,409 10,101,758 737,664 4,286,409 Cost of shares reacquired (7,209,965) (12,906,272) (13,139,429) (41,385,584) (4,409,281) (6,485,813) ------------ ------------- ------------- ------------- ------------ ------------ Increase (decrease) in net assets derived from capital share transactions (2,025,128) 1,614,750 5,589,870 21,073,590 5,437,799 18,694,196 ------------ ------------- ------------- ------------- ------------ ------------ NET INCREASE (DECREASE) IN NET ASSETS (438,076) (2,089,438) 24,813,620 6,698,877 19,301,642 13,894,913 NET ASSETS -- BEGINNING OF PERIOD 46,546,964 48,636,402 177,904,007 171,205,130 78,389,838 64,494,925 ------------ ------------- ------------- ------------- ------------ ------------ NET ASSETS -- END OF PERIOD $46,108,888 $ 46,546,964 $202,717,627 $177,904,007 $97,691,480 $78,389,838 ------------ ------------- ------------- ------------- ------------ ------------ ------------ ------------- ------------- ------------- ------------ ------------ Undistributed net investment income included in net assets at end of period $ 36,057 $ 17,359 $ 128,739 $ 44,571 $ 67,221 $ 1,393 ------------ ------------- ------------- ------------- ------------ ------ ------------ ------------- ------------- ------------- ------------ ------ Undistributed net realized gain (loss) on investments included in net assets at end of period $(2,184,698) $ (1,698,673) $ 3,140,182 $ 532,694 $ 2,426,260 $ 528,131 ------------ ------------- ------------- ------------- ------------ ------------ ------------ ------------- ------------- ------------- ------------ ------------
The accompanying notes are an integral part of these financial statements. 14 FINANCIAL HIGHLIGHTS CONNECTICUT MUTUAL INVESTMENT ACCOUNTS, INC. June 30, 1995 (Unaudited) Selected data for a share of capital stock outstanding throughout the period:
NET REALIZED DISTRIBUTIONS DIVIDENDS & UNREALIZED FROM NET NET ASSET YEARS NET FROM NET GAIN (LOSS) REALIZED VALUE AT ENDED INVESTMENT INVESTMENT ON GAIN ON BEGINNING DECEMBER 31 INCOME INCOME INVESTMENTS INVESTMENTS OF PERIOD --------------------------------------------------------------------------- LIQUID ACCOUNT 1986 $.0588 $(.0588) $ -- $ -- $ 1.00 1987 .0581 (.0581) -- -- 1.00 1988 .0664 (.0664) -- -- 1.00 1989 .0822 (.0822) -- -- 1.00 1990 .0731 (.0731) -- -- 1.00 1991 .0522 (.0522) -- -- 1.00 1992 .0287 (.0287) -- -- 1.00 1993 .0227 (.0227) -- -- 1.00 1994 .0334 (.0334) -- -- 1.00 1995 (c) .0256 (.0256) -- -- 1.00 GOVERNMENT SECURITIES ACCOUNT 1986 .92 (.92) .28 (.11) 10.73 1987 .84 (.84) (.52) (.21) 10.90 1988 .84 (.85) (.05) (.05) 10.17 1989 .84 (.84) .52 -- 10.06 1990 .84 (.84) .10 -- 10.58 1991 .85 (.85) .68 -- 10.68 1992 .77 (.77) (.12) (.05) 11.36 1993 .70 (.70) .36 (.64) 11.19 1994 .69 (.69) (1.14) (.01) 10.91 1995 (c) .37 (.36) .67 -- 9.76 INCOME ACCOUNT 1986 .83 (.83) .57 (.08) 10.55 1987 .76 (.76) (.56) (.51) 11.04 1988 .84 (.85) (.19) -- 9.97 1989 .88 (.88) .02 -- 9.77 1990 .94 (.94) (.35) -- 9.79 1991 .81 (.81) .47 -- 9.44 1992 .79 (.79) (.16) -- 9.91 1993 .65 (.65) .11 -- 9.75 1994 .68 (.68) (.72) -- 9.86 1995 (c) .33 (.33) .30 -- 9.14 TOTAL RETURN ACCOUNT 1986 .31 (.30) .99 (.04) 10.91 1987 .38 (.38) .13 (1.09) 11.87 1988 .53 (.53) .60 -- 10.91 1989 .76 (.76) 1.81 (.63) 11.51 1990 .66 (.66) (.68) (.07) 12.69 1991 .54 (.54) 2.79 (.71) 11.94 1992 .50 (.50) .86 (1.07) 14.02 1993 .48 (.48) 1.70 (.97) 13.81 1994 .55 (.55) (.86) (.24) 14.54 1995 (c) .31 (.30) 1.44 -- 13.44 GROWTH ACCOUNT 1986 .24 (.24) 1.11 (.08) 10.94 1987 .22 (.22) (.12) (2.05) 11.97 1988 .20 (.20) 1.20 -- 9.80 1989 .51 (.51) 3.30 (1.25) 11.00 1990 .34 (.34) (1.36) (.07) 13.05 1991 .25 (.25) 4.00 (1.22) 11.62 1992 .26 (.26) 1.44 (1.64) 14.40 1993 .30 (.30) 2.64 (1.70) 14.20 1994 .22 (.22) (.32) (.62) 15.14 1995 (c) .14 (.13) 2.42 -- 14.20 RATIO OF RATIO OF NET NET ASSET OPERATING INVESTMENT NET ASSETS YEARS VALUE AT EXPENSES TO INCOME TO AT END ANNUAL ENDED END AVERAGE AVERAGE PORTFOLIO OF PERIOD TOTAL DECEMBER 31 OF PERIOD NET ASSETS NET ASSETS TURNOVER (IN THOUSANDS) RETURN(B) ----------- LIQUID ACCOUNT 1986 $ 1.00 1.00% 5.88% n/a $74,111 6.03% 1987 1.00 1.00 5.81 n/a 68,908 5.97 1988 1.00 1.04 6.64 n/a 73,921 6.82 1989 1.00 1.06 8.22 n/a 87,264 8.53 1990 1.00 1.06 7.31 n/a 84,387 7.53 1991 1.00 1.01 5.22 n/a 69,932 5.31 1992 1.00 1.02 2.87 n/a 67,549 2.89 1993 1.00 .95 2.27 n/a 76,620 2.30 1994 1.00 .93 3.34 n/a 63,946 3.40 1995 (c) 1.00 .94(a) 5.16(a) n/a 63,864 2.58 GOVERNMENT SECURITIES ACCOUNT 1986 10.90 1.27 8.92 111.68% 22,947 11.66 1987 10.17 1.24 8.12 207.67 24,703 3.33 1988 10.06 1.16 8.27 175.50 35,910 7.99 1989 10.58 1.19 8.14 68.14 41,561 14.10 1990 10.68 1.16 8.07 44.19 47,524 9.44 1991 11.36 1.07 7.83 27.50 55,332 15.03 1992 11.19 1.01 6.92 131.79 67,612 6.07 1993 10.91 .93 6.03 224.02 77,596 9.56 1994 9.76 .91 6.71 156.90 60,162 (4.18) 1995 (c) 10.44 .94(a) 7.17(a) 55.89(a) 51,258 10.83 INCOME ACCOUNT 1986 11.04 1.29 7.69 164.13 14,620 13.54 1987 9.97 1.27 7.32 231.39 15,367 2.03 1988 9.77 1.24 8.43 150.04 16,789 6.70 1989 9.79 1.27 8.93 52.95 18,705 9.56 1990 9.44 1.24 9.78 90.20 19,809 6.33 1991 9.91 1.12 8.44 50.44 22,839 14.22 1992 9.75 .63 8.09 109.47 38,675 6.60 1993 9.86 .63 6.56 145.94 48,636 7.97 1994 9.14 .63 7.16 62.88 46,547 (0.42) 1995 (c) 9.44 .63(a) 7.13(a) 37.88(a) 46,109 6.97 TOTAL RETURN ACCOUNT 1986 11.87 1.26 3.22 143.32 35,382 11.88 1987 10.91 1.08 3.15 197.79 44,770 3.92 1988 11.51 1.11 4.61 223.62 54,253 10.40 1989 12.69 1.20 5.90 149.22 65,071 22.61 1990 11.94 1.24 5.31 115.45 66,382 (0.21) 1991 14.02 1.20 4.02 122.40 86,455 28.21 1992 13.81 1.11 3.61 177.85 109,701 9.90 1993 14.54 1.02 3.40 155.16 171,205 15.89 1994 13.44 .96 3.80 115.01 177,904 (2.11) 1995 (c) 14.89 1.20(a) 4.39(a) 53.78(a) 202,718 13.04 GROWTH ACCOUNT 1986 11.97 1.31 2.21 163.15 19,469 12.25 1987 9.80 1.17 1.71 214.32 19,638 (0.29) 1988 11.00 1.23 1.95 246.14 26,285 14.32 1989 13.05 1.18 3.90 169.75 37,323 34.86 1990 11.62 1.19 2.73 143.95 35,202 (7.98) 1991 14.40 1.19 1.74 148.30 40,716 36.91 1992 14.20 1.12 1.74 141.69 45,600 11.99 1993 15.14 1.05 1.95 99.67 64,495 20.91 1994 14.20 1.02 1.50 98.46 78,390 (0.65) 1995 (c) 16.63 1.26(a) 1.88(a) 75.89(a) 97,691 18.03 (a) Annualized (b) Annual total returns do not include the effect of sales charges (c) For the six months ended June 30, 1995
15 NOTES TO FINANCIAL STATEMENTS CONNECTICUT MUTUAL INVESTMENT ACCOUNTS, INC. June 30, 1995 (Unaudited) 1. ORGANIZATION AND SIGNIFICANT ACCOUNTING POLICIES Connecticut Mutual Investment Accounts, Inc. (the Fund), a Maryland corporation, is registered under the Investment Company Act of 1940, as amended, as an open-end management investment company. The Fund is comprised of thirteen distinct mutual funds, including the following five Accounts included in these financial statements: Liquid, Government Securities, Income, Total Return and Growth. An interest in the Fund is limited to the assets of the Account or Accounts in which shares are held by shareholders, and such shareholders are entitled to a pro rata share of all dividends and distributions arising from the net investment income and net realized capital gains on the investments of such Accounts. The following is a summary of significant accounting policies followed by the Fund: (a)VALUATION OF INVESTMENT SECURITIES - Except with respect to securities held by the Liquid Account, equity and debt securities which are traded on securities exchanges are valued at the last sales price as of the close of business on the day the securities are being valued. Lacking any sales, equity securities are valued at the last bid price and debt securities are valued at the mean between closing bid and asked prices. Securities traded in the over-the-counter market and included in the NASDAQ National Market System are valued using the last sales price when available. Otherwise, over-the-counter securities are valued at the mean between the bid and asked prices or yield equivalent as obtained from one or more dealers who make a market in the securities. Short-term securities are valued on an amortized cost basis, which approximates market value. Securities for which market quotations are not readily available are valued at fair value as determined in accordance with procedures established by the Board of Directors of the Fund, including the use of valuations furnished by a private service retained by the custodian. Securities held by the Liquid Account are valued on an amortized cost basis. This basis involves valuing a security at cost and thereafter assuming a constant amortization to maturity of any discount or premium, regardless of the impact of fluctuating interest rates on the market value of the instrument. The amortized cost method, in the opinion of the Board of Directors, represents the fair value of the particular security. The Board monitors the deviation between the Account's net asset value per share as determined by using available market quotations and its amortized cost price per share. If the deviation exceeds one half of one percent, the Board will consider what action, if any, should be initiated to provide fair valuation. Throughout the second quarter of 1995, the deviation was less than one half of one percent. (b)FEDERAL INCOME TAXES - The Fund intends to continue to qualify as a regulated investment company under Subchapter M of the Internal Revenue Code. Under such provisions, by distributing substantially all of its taxable income to its shareholders or otherwise complying with requirements for regulated investment companies, the Fund will not be subject to Federal income taxes. Accordingly, no provision for Federal income taxes is required. For Federal tax reporting purposes, each Account is treated as a separate taxable entity. (c)GAINS AND LOSSES - Realized gains and losses from sales of investments are determined on the identified cost basis. (d)AFFILIATE HOLDINGS - Connecticut Mutual Life Insurance Company and its affiliates own 29,124,112 shares of the five Accounts of the Fund as follows:
GOVERNMENT LIQUID SECURITIES INCOME TOTAL RETURN GROWTH 25,026,814 725,035 1,533,159 210 1,838,894
(e)OTHER - Investment transactions are accounted for on the trade date which is the date the order to buy or sell is executed. Dividend income is recorded on the ex-dividend date and interest income is accrued on a daily basis. All expenses are accrued on a daily basis. 2. INVESTMENT ADVISORY FEES AND OTHER AFFILIATE TRANSACTIONS The Fund has an Investment Advisory Agreement with G.R. Phelps & Co., Inc. (the Investment Adviser), a wholly-owned subsidiary of Connecticut Mutual Life Insurance Company. The Investment Adviser, subject to review by the Board of Directors, is responsible for the investment management of each Account and has the responsibility for making decisions to buy, sell or hold any particular security. The Investment Adviser is obligated to perform certain administrative services for the Fund. As compensation for its services to the Liquid Account, the Investment Adviser receives monthly compensation at the annual rate of 0.50% of the first $200 million of average daily net assets, 0.45% of the next $100 million of average daily net assets and 0.40% of the average daily net assets in excess of $300 million of the Account. As compensation for its services to the Government Securities, Income, Total Return and Growth Accounts, the Investment Adviser receives monthly compensation at the annual rate of 0.625% of the first $300 million of average daily net assets, 0.50% of the next $100 million of average daily net assets and 0.45% of the average daily net assets in excess of $400 million of each Account. 16 The investment advisory fees, which also cover certain administrative and management services, amounted to $1,353,596 for all Accounts for the six months ended June 30, 1995. For the six months ended June 30, 1995, the Investment Adviser, serving as principal underwriter for sale of shares of the Accounts, earned $809,906 related to sales charges deducted from proceeds for shares sold. Expenses incurred in the operation of the Fund are borne by the Fund. However, the Investment Adviser has agreed that in any year the aggregate expenses (including the investment advisory fee, but excluding interest, taxes, brokerage fees, commissions and uncommon charges such as litigation costs) exceed 1% of the value of the average daily net assets of the Liquid Account or 1.5% of the value of the average daily net assets in each of the other four Accounts, it will reimburse the Accounts for such excess. Each Account has adopted a distribution plan (Plan) in accordance with the requirements of Rule 12b-1 of the Investment Company Act of 1940. Under each Plan, each Account may pay G. R. Phelps & Co., Inc. (the Distributor) a fee, not exceeding 0.25% of the Account's average daily net assets for any fiscal year, as reimbursement for its expenditures incurred in distributing and servicing shares of the Account. Effective May 1, 1995, the Total Return and Growth Accounts commenced accruing fees daily and paying fees monthly to the Distributor at an annual rate of 0.25% of each Account's average daily net assets. For the two months ended June 30, 1995, the Distributor received $122,589 in fees from these Accounts. The Liquid, Government Securities and Income Accounts accrued no fees and paid no amounts pursuant to any Plan during the six months ended June 30, 1995. 3. DISTRIBUTIONS TO SHAREHOLDERS Dividends from net investment income are declared and paid monthly for the Government Securities and Income Accounts and semi-annually for the Total Return and Growth Accounts. Dividends from net investment income of the Liquid Account, which include any net short-term capital gains, are declared and accrued daily and paid monthly. All net realized capital gains (excluding the Liquid Account), if any, are declared and paid at least annually. 4. CAPITAL STOCK The authorized capital stock of the Fund at June 30, 1995 consisted of 3,000,000,000 shares of common stock, par value $0.001 per share. The shares of stock are divided among thirteen separate Accounts, five of which are indicated below. All shares of common stock have equal voting rights, except that only shares of a particular Account are entitled to vote on matters pertaining to that Account. Transactions in capital stock were as follows:
FOR THE SIX MONTHS ENDED JUNE 30, 1995 GOVERNMENT TOTAL LIQUID SECURITIES INCOME RETURN GROWTH Shares authorized (in millions) 600 200 200 200 200 --- --- --- --- --- --- --- --- --- --- Shares sold 87,303,939 161,212 406,488 1,034,767 595,765 Shares issued to shareholders from reinvestment of dividends 1,674,793 181,502 151,184 265,449 44,738 ------------ ----------- ---------- ------------ --------- Total issued 88,978,732 342,714 557,672 1,300,216 640,503 Shares reacquired (89,060,819) (1,598,262) (769,419) (921,386) (286,565) ------------ ----------- ---------- ------------ --------- Net increase (decrease) (82,087) (1,255,548) (211,747) 378,830 353,938 ------------ ----------- ---------- ------------ --------- ------------ ----------- ---------- ------------ ---------
17 CONNECTICUT MUTUAL INVESTMENT ACCOUNTS, INC. ------------------------------------------- BOARD OF DIRECTORS AND OFFICERS DIRECTORS RICHARD H. AYERS Chairman and Chief Executive Officer The Stanley Works DAVID E. A. CARSON President, Chairman and Chief Executive Officer People's Bank RICHARD W. GREENE Executive Vice President and Treasurer University of Rochester BEVERLY L. HAMILTON President ARCO Investment Management Company DAVID E. SAMS, JR. President and Chief Executive Officer Connecticut Mutual Life Insurance Company OFFICERS LINDA M. NAPOLI, Treasurer and Controller Treasurer, Mutual Funds Connecticut Mutual Life Insurance Company LOUIS A. LACCAVOLE, CPA, General Auditor Vice President and General Auditor Connecticut Mutual Life Insurance Company ANN F. LOMELI, Secretary Corporate Secretary and Counsel Connecticut Mutual Life Insurance Company AUDITORS ARTHUR ANDERSEN LLP Hartford, CT This report has been prepared for shareholders of the Account and may be distributed to prospective investors in the Account when preceded or accompanied by a current prospectus. -----END PRIVACY-ENHANCED MESSAGE-----