-----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, o865nwrsqNgK0PplpSulWLctgYzulQ/D+YhjK/eCM51ccCfDNqOcduKXrO3Gx3GO O0vX0btVxN1/22eZPN9YWg== 0000912057-95-007389.txt : 19950907 0000912057-95-007389.hdr.sgml : 19950907 ACCESSION NUMBER: 0000912057-95-007389 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: 95570317 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 LIFESPAN SHAREHOLDER: I'm pleased to take this opportunity to welcome you to CMIA LifeSpan Accounts, our newest addition to Connecticut Mutual's extensive array of funds. I hope you are as enthusiastic as we are about CMIA LifeSpan and its ability to bring you diversification and a range of expertise -- all within one fund. Although CMIA LifeSpan was just introduced in May, we've already attracted the interest of the financial community. The WALL STREET JOURNAL cited CMIA LifeSpan Accounts in an August 4, 1995 article about the emerging trend of the life-cycle funds. Within a CMIA LifeSpan Account, you are investing in four to seven different types of securities -- each managed with different investment styles. The mix reflects your investment objectives and needs, rather than relying on the traditional approach based on investor age. The investments also are made within clearly defined parameters, so you know exactly how your money is being allocated. The three CMIA LifeSpan Accounts include the funds in the CMIA mutual fund family -- all of which have an excellent track record over time -- as well as three funds managed by external managers carefully selected for their expertise. These funds include the International Fund managed by Scudder, Stevens and Clark, Inc.; the High Yield/High Risk Bond Fund managed by BA Associates; and the Small Capital Stock Fund managed by Pilgrim Baxter and Associates. If you are new to Connecticut Mutual you'll soon realize that we consistently adhere to a value-oriented investment strategy that has produced solid results over time. We plan to stay the course with that strategy in an effort to produce the long-term rewards sought by investors like you. Although it is too early to share with you the performance of this newest member of the CMIA family, we know that all of the funds within CMIA LifeSpan have performed well over time and, while past performance is no guarantee of future results, we are confident of a strong future. I will be communicating with you semi-annually to report on the state of the economy and the results of your investments. I look forward to a long and prosperous relationship with you as a CMIA investor, and thank you for your confidence in us. 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 will continue, fueling strong demand for stocks and bonds. 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 -- rather than chasing the latest investment fad -- you are more likely to achieve favorable returns over the long-term. As a CMIA LifeSpan 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 would like more information about CMIA LifeSpan, or want to consider expanding your investment options, talk to your registered representative or call 1-800-234-5606, and press one, to find out more. David E. Sams, Jr. PRESIDENT AND CHIEF EXECUTIVE OFFICER CONNECTICUT MUTUAL LIFE INSURANCE COMPANY T H E C M I A L I F E S P A N A C C O U N T S CAPITAL APPRECIATION ACCOUNT This account is designed for the investor seeking capital appreciation. The Capital Appreciation Account seeks long-term capital appreciation through a strategically allocated portfolio consisting primarily of equity securities. Current income is not a primary consideration. BALANCED ACCOUNT This Account is designed for the investor seeking capital appreciation and income. The Balanced Account seeks a blend of capital appreciation and income through a strategically allocated portfolio of equity securities and fixed-income securities with a slightly strong emphasis on equity securities. DIVERSIFIED INCOME ACCOUNT This Account is designed for the investor with a relatively low tolerance for risk who is seeking current income with some long-term inflation protection. The Diversified Income Account seeks high current income, with opportunities for capital appreciation, through a strategically allocated portfolio consisting primarily of fixed-income securities. PAST PERFORMANCE IS NOT INDICATIVE OF FUTURE PERFORMANCE. THIS MATERIAL IS INTENDED FOR USE ONLY WHEN ACCOMPANIED OR PRECEDED BY A PROSPECTUS. SCHEDULE OF INVESTMENTS CONNECTICUT MUTUAL INVESTMENT ACCOUNTS, INC. June 30, 1995 (Unaudited) LIFESPAN DIVERSIFIED INCOME ACCOUNT
NUMBER OF MARKET SHARES SECURITY VALUE COMMON STOCKS (23.5% OF NET ASSETS) AEROSPACE (2.4%) 2,800 General Dynamics Corp $ 124,250 2,400 General Motors Corp. Class H 94,800 3,000 Lockheed Martin Corp. 189,375 2,300 Rockwell International Corp. 105,225 ------------ 513,650 ------------ BANKING (2.0%) 2,600 Bank of New York Co., Inc. 104,975 1,900 Chase Manhattan Corp. 89,300 1,500 Morgan (J.P.) & Company, Inc. 105,188 700 Wells Fargo & Co. 126,175 ------------ 425,638 ------------ BUSINESS EQUIPMENT & SERVICES (.4%) 4,700 New England Business Service, Inc. 92,825 ------------ CHEMICALS (1.4%) 3,100 Grace (W.R.) & Co. 190,262 1,200 Monsanto Co. 108,150 ------------ 298,412 ------------ CONGLOMERATES (.9%) 7,400 Hanson PLC 130,425 900 Textron, Inc. 52,312 ------------ 182,737 ------------ DRUGS & COSMETICS (.5%) 1,400 American Home Products Corp. 108,325 ------------ ELECTRIC UTILITIES (2.8%) 3,400 FPL Group, Inc. 131,325 4,200 Illinova Corp. 106,575 5,000 Kansas City Power & Light Co. 114,375 4,800 Unicom Corp. 127,800 3,900 Western Resources, Inc. 120,413 ------------ 600,488 ------------ HEALTH SERVICES & HOSPITAL SUPPLIES (.8%) 4,400 Baxter International Inc. 160,050 ------------ INSURANCE (2.0%) 1,700 Aetna Life & Casualty Co. 106,888 3,100 American General Corp. 104,625 2,300 Lincoln National Corp. 100,625 2,000 St. Paul Companies Inc. 98,500 ------------ 410,638 ------------ IRON & STEEL (1.4%) 1,600 Carpenter Technology Corp. 109,000 25,000 UNR Industries Inc. 184,375 ------------ 293,375 ------------ NUMBER OF MARKET SHARES SECURITY VALUE MANUFACTURING (.1) 370 U.S. Industries, Inc. $ 5,041 ------------ MISCELLANEOUS (.4%) 3,000 Dial Corp. 74,250 ------------ OFFICE EQUIPMENT (.4%) 800 Xerox Corp. 93,800 ------------ OIL & GAS (3.4%) 1,600 Amoco Corp. 106,600 2,400 Chevron Corp. 111,900 1,200 Mobil Corp. 115,200 6,200 Panhandle Eastern Corp. 151,125 1,000 Royal Dutch Petroleum Co. 121,875 4,300 Ultramar Corp. 108,575 ------------ 715,275 ------------ REAL ESTATE (1.3%) 3,600 Camden Property Trust 78,750 6,300 Health & Retirement Property Trust 94,500 3,100 Meditrust Corp. 105,787 ------------ 279,037 ------------ RETAIL TRADE (.5%) 1,800 Sears, Roebuck & Co. 107,775 ------------ TELEPHONE UTILITIES (1.6%) 3,100 Ameritech Corp. 136,400 2,800 GTE Corp. 95,550 2,500 NYNEX Corp. 100,625 ------------ 332,575 ------------ TOBACCO (1.2%) 2,900 American Brands, Inc. 115,275 1,800 Philip Morris Companies Inc. 133,875 ------------ 249,150 ------------ TOTAL COMMON STOCKS (COST $4,762,682) 4,943,041 ------------ CONVERTIBLE PREFERRED STOCKS (.6% OF NET ASSETS) ENERGY SERVICES J. Ray McDermott, SA (COST 2,300 $142,485) 119,887 ------------ PRINCIPAL CORPORATE BONDS AMOUNT (20.6% OF NET ASSETS) APPAREL & TEXTILES (.2%) U.S. Leather, Inc. $ 50,000 10.25%, 2003 43,250 ------------ AUTO & AUTO RELATED (.2%) Venture Holdings 50,000 9.75%, 2004 41,750 ------------
1 LIFESPAN DIVERSIFIED INCOME ACCOUNT (cont'd)
PRINCIPAL MARKET AMOUNT SECURITY VALUE BANKING (2.8%) BankAmerica Corp $ 300,000 6.00%, 1997 $ 297,915 First USA Bank of Delaware 150,000 5.35%, 1996 142,710 Shawmut National Corp. 150,000 8.875%, 1996 152,595 ------------ 593,220 ------------ CHEMICALS (.7%) Building Materials Corp. of America 100,000 0.00%, 2004 59,000 G-I Holdings 50,000 0.00%, 1998 33,500 Harris Chemical North America, Inc. 50,000 0.00%, 2001 45,375 ------------ 137,875 ------------ COMPUTER BUSINESS EQUIPMENT & SERVICES (.6%) Unisys Corp. 125,000 9.75%, 1996 127,812 ------------ DRUGS & COSMETICS (1.5%) Revlon Consumer Products Corp. 50,000 9.375%, 2001 48,250 Roche Holdings Inc. 300,000 2.75%, 2000 255,375 ------------ 303,625 ------------ FINANCIAL SERVICES (2.0%) Chrysler Financial Corp. 120,000 6.65%, 1997 121,224 General Motors Acceptance Corp. 300,000 5.65%, 1997 294,792 ------------ 416,016 ------------ HEALTH SERVICES (.9%) Continental Medical Systems, Inc. 50,000 10.875%, 2002 52,500 Genesis Health Venture, Inc. 75,000 9.75%, 2005 75,563 Integrated Health Services, Inc. 50,000 9.625%, 2002 51,000 ------------ 179,063 ------------ IRON & STEEL (.4%) Geneva Steel 25,000 9.50%, 2004 17,875 Republic Engineered Steels, Inc. 25,000 9.875%, 2001 22,625 Wierton Steel Corp. 50,000 10.75%, 2005 46,750 ------------ 87,250 ------------ PRINCIPAL MARKET AMOUNT SECURITY VALUE LEASING (.2%) GPA Delaware, Inc. $ 50,000 8.75%, 1998 $ 42,500 ------------ LEISURE & ENTERTAINMENT (2.8%) Adelphia Communications Corp. 25,000 12.50%, 2002 24,875 Australis Media Ltd. 75,000 0.00%, 2003 39,188 Bally Park Place Funding 50,000 9.25%, 2004 47,000 Bell Cablemedia PLC 75,000 0.00%, 2004 50,438 Comcast Corp. 50,000 9.375%, 2005 49,875 Greate Bay Property Funding 25,000 10.875%, 2004 21,250 GNF Corp. 50,000 10.625%, 2003 41,500 Helicon Group Ltd. 100,000 9.00%, 2003 92,250 Kloster Cruise Ltd. 25,000 13.00%, 2003 19,250 Peoples Choice TV Corp. 75,000 0.00%, 2004 35,625 Santa Fe Hotel 50,000 11.00%, 2000 46,750 Selmer Company, Inc. 50,000 11.00%, 2005 48,750 Trump Plaza Funding 50,000 10.875%, 2001 45,750 Trump Taj Mahal 50,000 0.00%, 1999 40,250 ------------ 602,751 ------------ MACHINERY & EQUIPMENT (.2%) Specialty Equipment Companies, Inc. 50,000 11.375%, 2003 51,375 ------------ MANUFACTURING (1.7%) American Standard, Inc. 50,000 0.00%, 2005 38,000 Day International Group, Inc. 50,000 11.125%, 2005 50,250 Huntsman Corp. 75,000 10.625%, 2001 79,125 Interlake Corp. 50,000 12.125%, 2002 49,375 International Wire Group, Inc. 50,000 11.75%, 2005 50,375 Jordan Industries, Inc. 25,000 10.375%, 2003 23,062
The accompanying notes are an integral part of these financial statements. 2 LIFESPAN DIVERSIFIED INCOME ACCOUNT (cont'd)
PRINCIPAL MARKET AMOUNT SECURITY VALUE Plantronics, Inc. $ 75,000 10.00%, 2001 $ 75,533 ------------ 365,720 ------------ OIL & GAS (.4%) Maxus Energy Corp. 50,000 9.875%, 2002 47,750 Mesa Capital CP 50,000 0.00%, 1998 45,250 ------------ 93,000 ------------ PAPER & FOREST PRODUCTS (1.8%) Crown Packaging Holdings Ltd. 100,000 0.00%, 2003 50,375 Doman Industries Ltd. 50,000 8.75%, 2004 47,500 Gaylord Container Corp. 50,000 0.00%, 2005 49,000 Grupo Industrial Durango 25,000 12.00%, 2001 18,750 Indah Kiat Pulp & Paper Corp. 50,000 11.875%, 2002 50,500 Malette, Inc. 50,000 12.25%, 2004 55,500 Stone Container Corp. 100,000 9.875%, 2001 99,125 ------------ 370,750 ------------ PRINTING & PUBLISHING (.1%) Marvel III Holdings Inc. 25,000 9.125%, 1998 23,125 ------------ RETAIL TRADE (2.1%) Cole National Corp. 50,000 11.25%, 2001 46,750 Dairy Mart Convenience Stores, Inc. 50,000 10.25%, 2004 42,250 Duane Reade, Inc. 50,000 12.00%, 2002 40,250 Farm Fresh, Inc. 50,000 12.25%, 2000 48,375 Hills Stores Co. 50,000 10.25%, 2003 49,500 Pathmark Stores, Inc. 100,000 0.00%, 2003 60,000 Penn Traffic Co. 50,000 9.625%, 2005 47,125 Ralphs Grocery Co. 50,000 11.00%, 2005 48,125 PRINCIPAL MARKET AMOUNT SECURITY VALUE Waban, Inc. $ 50,000 11.00%, 2004 $ 51,000 ------------ 433,375 ------------ TECHNOLOGY (.4%) Monarch Acquisition 75,000 12.50%, 2003 75,562 ------------ TELECOMMUNICATIONS (.9%) Centennial Cellular Corp. 50,000 10.125%, 2005 49,250 Intermedia Communications of Florida, Inc. 50,000 13.50%, 2005 50,250 MFS Communications Company, Inc. 75,000 0.00%, 2004 52,125 Nextel Communications, Inc. 100,000 0.00%, 2004 48,000 ------------ 199,625 ------------ TRANSPORTATION (.7%) Federal Express Corp. 150,000 6.25%, 1998 148,869 ------------ TOTAL CORPORATE BONDS (COST $4,386,876) 4,336,513 ------------ U.S. GOVERNMENT & AGENCY LONG-TERM OBLIGATIONS (48.7% OF NET ASSETS) U.S. Treasury Bond 1,320,000 8.125%, 2019 1,535,741 U.S. Treasury Notes 2,950,000 7.375%, 1997 3,045,875 4,350,000 5.125%, 1998 4,266,393 1,320,000 7.25%, 2004 1,410,539 ------------ TOTAL U.S. GOVERNMENT & AGENCY LONG-TERM OBLIGATIONS (COST $9,922,964) 10,258,548 ------------ FOREIGN GOVERNMENT BONDS (1.5% OF NET ASSETS) Province of Ontario 300,000 8.25%, 1996 (COST $305,337) 304,587 ------------ REPURCHASE AGREEMENTS (3.3% OF NET ASSETS) State Street Bank & Trust Co. 5.50%, due 7/3/95 (COST 705,000 $705,000) 705,000 ------------ TOTAL INVESTMENTS (COST $20,225,344) $ 20,667,576 ------------ ------------
3 LIFESPAN BALANCED ACCOUNT
NUMBER OF MARKET SHARES SECURITY VALUE COMMON STOCKS (44.3% OF NET ASSETS) AEROSPACE (3.1%) 4,300 General Dynamics Corp. $ 190,814 4,500 General Motors Corp. Class H 177,749 4,900 Lockheed Martin Corp. 309,313 2,200 Loral Corp. 113,850 1,300 McDonnell Douglas Corp. 99,775 4,100 Rockwell International Corp. 187,575 ------------ 1,079,076 ------------ AIRLINES (.7%) 1,100 AMR Corp. 82,088 1,300 Delta Air Lines, Inc. 95,875 1,700 Northwest Airlines Corp. 60,137 ------------ 238,100 ------------ APPAREL & TEXTILES (.6%) 2,000 St. John Knits, Inc. 89,750 4,100 Tommy Hilfiger Corp. 114,800 ------------ 204,550 ------------ BANKING (2.3%) 5,500 Bank of New York Co., Inc. 222,063 3,800 Chase Manhattan Corp. 178,600 3,100 Morgan (J.P.) & Company, Inc. 217,388 1,100 Wells Fargo & Co. 198,275 ------------ 816,326 ------------ BUILDING MATERIALS & CONSTRUCTION (.1%) 800 USG Corp. 19,000 ------------ BUSINESS EQUIPMENT & SERVICES (.5%) 2,000 Medic Computer Systems, Inc. 77,000 4,700 New England Business Service, Inc. 92,824 ------------ 169,824 ------------ CHEMICALS (1.5%) 700 FMC Corp. 47,075 4,700 Grace (W.R.) & Co. 288,462 2,200 Monsanto Co. 198,275 ------------ 533,812 ------------ COMMERCIAL SERVICES (.3%) 1,500 Alternative Resources Corp. 39,750 2,500 Corrections Corporation of America 85,937 ------------ 125,687 ------------ COMPUTER BUSINESS EQUIPMENT & SERVICES (2.6%) 1,700 ALANTEC Corp. 58,225 1,000 Avid Technology, Inc. 37,500 2,900 Cognex Corp. 116,725 2,500 Digital Link Corp. 70,625 2,100 FileNet Corp. 84,788 3,000 Frame Technology Corp. 87,750 2,300 Hyperion Software Corp. 104,075 2,200 McAfee Associates, Inc. 66,687 NUMBER OF MARKET SHARES SECURITY VALUE 3,000 National Data Corp. $ 69,375 2,900 Optical Data Systems, Inc. 76,125 1,000 Progress Software Corp. 52,000 2,100 Wonderware Corp. 84,525 ------------ 908,400 ------------ CONGLOMERATES (.9%) 1,100 AlliedSignal Inc. 48,950 7,400 Hanson PLC 130,424 3,000 Jardine Matheson Holdings Ltd. 22,050 2,200 Textron, Inc. 127,875 ------------ 329,299 ------------ DRUGS & COSMETICS (.8%) 2,000 American Home Products Corp. 154,750 1,700 Circa Pharmaceuticals, Inc. 54,187 1,500 Watson Pharmaceuticals, Inc. 58,500 ------------ 267,437 ------------ ELECTRICAL & ELECTRONIC EQUIPMENT (4.1%) 3,100 C-Cube Microsystems, Inc. 84,475 2,000 Cidco, Inc. 62,750 3,150 Credence Systems Corp. 95,288 3,000 GaSonics International 85,500 1,900 Integrated Silicon Solution, Inc. 99,275 2,600 Itron, Inc. 81,250 1,900 Kemet Corp. 99,750 2,400 Lattice Semiconductor Corp. 82,500 600 Mattson Technology, Inc. 28,200 1,400 Micron Technology Inc. 76,825 1,200 Philips Electronics NV 51,300 2,500 Photronics, Inc. 76,875 3,200 S3, Inc. 115,200 2,500 Silicon Valley Group, Inc. 90,625 2,200 Tencor Instruments 90,200 3,000 Ultratech Stepper, Inc. 105,750 1,700 Vicor Corp. 76,394 1,100 VLSI Technology, Inc. 33,137 ------------ 1,435,294 ------------ ELECTRIC UTILITIES (2.3%) 5,400 FPL Group, Inc. 208,575 6,800 Illinova Corp. 172,550 5,000 Kansas City Power & Light Co. 114,375 7,600 Unicom Corp. 202,350 3,900 Western Resources, Inc. 120,412 ------------ 818,262 ------------ ENVIRONMENTAL CONTROL (.4%) 2,500 Newpark Resources, Inc. 52,500 2,200 United Waste Systems, Inc. 79,200 ------------ 131,700 ------------ FINANCIAL SERVICES (.1%) 3,400 National Auto Credit, Inc. 45,474 ------------
The accompanying notes are an integral part of these financial statements. 4 LIFESPAN BALANCED ACCOUNT (cont'd)
NUMBER OF MARKET SHARES SECURITY VALUE FOOD & BEVERAGES (.9%) 3,700 Archer Daniels Midland Co. $ 68,913 3,200 Boston Chicken, Inc. 77,400 3,200 Landry's Seafood Restaurants, Inc. 64,000 1,500 Papa John's International, Inc. 52,500 2,100 Ralcorp Holdings, Inc. 48,038 ------------ 310,851 ------------ HEALTH SERVICES & HOSPITAL SUPPLIES (2.2%) 7,200 Baxter International Inc. 261,900 1,800 Columbia Healthcare Corp. 77,850 2,200 Community Health Systems, Inc. 74,525 2,000 Express Scripts, Inc. 70,500 3,000 Gulf South Medical Supply, Inc. 72,000 3,200 Maxicare Health Plans, Inc. 49,600 2,000 PhyCor, Inc. 70,250 2,800 Ren Corp. 44,450 4,100 TheraTx, Inc. 54,838 ------------ 775,913 ------------ INSURANCE (2.9%) 3,500 Aetna Life & Casualty Co. 220,063 5,400 American General Corp. 182,250 1,800 Healthsource, Inc. 63,000 3,500 Lincoln National Corp. 153,125 3,200 St. Paul Companies Inc. 157,600 2,300 TIG Holdings, Inc. 52,900 2,800 Travelers Group 122,500 1,500 Vesta Insurance Group, Inc. 51,561 ------------ 1,002,999 ------------ IRON & STEEL (.8%) 1,600 Carpenter Technology Corp. 109,000 25,000 UNR Industries Inc. 184,374 ------------ 293,374 ------------ LEISURE & ENTERTAINMENT (1.1%) 1,500 Clear Channel Communications, Inc. 96,563 1,300 Grand Casinos, Inc. 45,988 1,900 Mattel, Inc. 49,400 2,500 Regal Cinemas, Inc. 80,000 1,700 Station Casinos, Inc. 29,325 3,000 TCA Cable TV, Inc. 81,000 ------------ 382,276 ------------ MACHINERY & EQUIPMENT (.7%) 900 Caterpillar Inc. 57,825 1,600 Electroglas, Inc. 91,600 2,200 Mark IV Industries, Inc. 47,300 1,800 Parker-Hannifin Corp. 65,250 ------------ 261,975 ------------ MANUFACTURING (.9%) 1,700 Black & Decker Corp. 52,487 NUMBER OF MARKET SHARES SECURITY VALUE 3,300 FSI International, Inc. $ 76,931 1,900 Helix Technology Corp. 81,700 4,400 Lydall, Inc. 96,800 500 U.S. Industries 6,813 ------------ 314,731 ------------ METALS & MINING (.4%) 1,300 IMC Global Inc. 70,363 Potash Corporation of Saskatchewan 1,400 Inc. 78,224 ------------ 148,587 ------------ MISCELLANEOUS (.7%) 6,300 Dial Corp. 155,925 1,700 Premark International, Inc. 88,188 ------------ 244,113 ------------ OFFICE EQUIPMENT (.5%) 1,500 Xerox Corp. 175,875 ------------ OIL & GAS (3.7%) 2,700 Amoco Corp. 179,888 4,200 Chevron Corp. 195,825 2,100 Mobil Corp. 201,600 10,500 Panhandle Eastern Corp. 255,937 2,000 Repsol SA (Sponsored ADR) 63,250 1,600 Royal Dutch Petroleum Co. 195,000 2,000 Seitel, Inc. 62,000 4,300 Ultramar Corp. 108,575 1,500 YPF Sociedad Anonima (ADR) 28,313 ------------ 1,290,388 ------------ PAPER & FOREST PRODUCTS (.6%) 600 Georgia-Pacific Corp. 52,050 1,600 Scott Paper Co. 79,200 1,200 Willamette Industries, Inc. 66,600 ------------ 197,850 ------------ PRINTING & PUBLISHING (.1%) 800 Gartner Group, Inc. 23,200 ------------ REAL ESTATE (.8%) 3,600 Camden Property Trust 78,750 6,300 Health & Retirement Property Trust 94,500 3,100 Meditrust Corp. 105,788 ------------ 279,038 ------------ RETAIL TRADE (2.6%) 3,100 American Stores Co. 87,187 3,300 Books-A-Million 51,562 1,700 CDW Computer Centers, Inc. 85,850 4,500 Corporate Express, Inc. 96,188 3,200 Dollar Tree Stores, Inc. 84,800 1,300 Eckerd Corp. 41,600 2,600 General Nutrition Companies, Inc. 91,325 2,700 Kroger Co. 72,563 3,900 Sears, Roebuck & Co. 233,513
5 LIFESPAN BALANCED ACCOUNT (cont'd)
NUMBER OF MARKET SHARES SECURITY VALUE 1,400 Sunglass Hut International, Inc. $ 49,000 ------------ 893,588 ------------ TECHNOLOGY (.8%) 600 Applied Materials, Inc. 51,975 1,200 Compaq Computer Corp. 54,450 Computer Associates International, 1,100 Inc. 74,525 International Business Machines 900 Corp. 86,400 ------------ 267,350 ------------ TELCOMMUNICATIONS (1.0%) 1,000 Ascend Communications, Inc. 50,500 1,500 Aspect Telecommunications Corp. 67,125 3,200 Ericsson LM Tel. Co.(Spons. ADR) 64,000 3,000 LCI International, Inc. 91,875 1500 Picturel Corp. 72,188 ------------ 345,688 ------------ TELEPHONE UTILITIES (1.6%) 5,100 Ameritech Corp. 224,400 4,900 GTE Corp. 167,213 4,400 NYNEX Corp. 177,100 ------------ 568,713 ------------ TOBACCO (1.1%) 4,400 American Brands, Inc. 174,900 2,900 Philip Morris Companies Inc. 215,688 ------------ 390,588 ------------ TRANSPORTATION (.4%) 1,500 Fritz Companies, Inc. 88,031 2,400 RailTex, Inc. 57,000 ------------ 145,031 ------------ WHOLESALE TRADE (.2%) 900 CellStar Corp. 21,037 1,600 Fusion Systems Corp. 54,800 ------------ 75,837 ------------ TOTAL COMMON STOCKS (COST $14,509,846) 15,510,206 ------------ FOREIGN COMMON STOCKS (11.5% OF NET ASSETS) AUTO & AUTO RELATED (.6%) 1,000 Autoliv AB (Sweden) 53,499 1,000 Michelin CGDE (France) 44,297 3,000 Shinmaywa Industries Ltd. (Japan) 25,167 700 Valeo SA (France) 34,038 2,000 Volvo AB (Sweden) 38,096 ------------ 195,097 ------------ BANKING (1.0%) 400 Banco Popular Espanol (Spain) 59,443 1,500 Banco Santander SA (Spain) 59,133 NUMBER OF MARKET SHARES SECURITY VALUE Bangkok Bank Company Ltd. 4,000 (Thailand) $ 44,075 1,000 Deutsche Bank AG (Germany) 48,594 1,200 HSBC Holdings PLC (United Kingdom) 15,392 6,000 Malayan Banking Berhad (Malaysia) 47,498 200 Societe Generale Paris (France) 23,375 4,500 Thai Farmers Bank Ltd. (Thailand) 43,022 ------------ 340,532 ------------ BUILDING MATERIALS & CONSTRUCTION (.1%) PT Indocement Tunggal Prakar 6,000 (Indonesia) 23,574 ------------ CHEMICALS (.2%) 200 Akzo Nobel (Netherlands) 23,904 225 Bayer AG (Germany) 55,969 ------------ 79,873 ------------ COMPUTER BUSINESS EQUIPMENT & SERVICES (.2%) 5,000 Fujitsu Ltd. (Japan) 49,850 600 Getronics NV (Netherlands) 29,390 ------------ 79,240 ------------ CONGLOMERATES (.9%) Alusuisse-Lonza Holding AG 70 (Switzerland) 43,891 2,000 Canadian Pacific Ltd. (Canada) 34,583 13,000 Hanson PLC (United Kingdom) 45,387 10,000 Hutchison Whampoa Ltd. (Hong Kong) 48,334 180 Mannesmann AG (Germany) 54,993 22,000 Renong Berhad (Malaysia) 40,968 100 Viag AG (Germany) 39,468 ------------ 307,624 ------------ DRUGS & COSMETICS (1.3%) 1,800 Astra AB (Sweden) 55,576 100 Ciba-Geigy AG (Switzerland) 73,296 5,000 PT Kalbe Farma (Indonesia) 22,901 100 Sandoz AG (Switzerland) 68,954 1,000 Schering AG (Germany) 69,853 SmithKline Beecham (United 8,000 Kingdom) 72,403 SmithKline Bch/Bec Units (United 5,000 Kingdom) 44,377 4,000 Zeneca Group PLC (Germany) 67,536 ------------ 474,896 ------------ ELECTRIC UTILITIES (.3%) 3,300 Powergen PLC (United Kingdom) 25,326 200 VEBA AG (Germany) 78,603 ------------ 103,929 ------------
The accompanying notes are an integral part of these financial statements. 6 LIFESPAN BALANCED ACCOUNT (cont'd)
NUMBER OF MARKET SHARES SECURITY VALUE ELECTRICAL & ELECTRONIC EQUIPMENT (1.3%) BBC AG Brown Boveri & Cie. 65 (Switzerland) $ 67,286 5,000 Hitachi Ltd. (Japan) 49,850 200 Keyence Corp. (Japan) 22,418 1,000 Kyocera Corp. (Japan) 82,355 Matsushita Electric Industrial Co. 3,000 Ltd. (Japan) 46,723 Philips Electronics NV 2,000 (Netherlands) 84,672 1,000 Pioneer Electronic Corp. (Japan) 16,990 1,000 Sony Corp. (Japan) 48,021 Sumitomo Electric Industries Ltd. 4,000 (Japan) 47,667 ------------ 465,982 ------------ FINANCIAL SERVICES (.5%) 220 Compagnie Bancaire SA (France) 26,302 International Nederlanden Groep NV 1,000 (Netherlands) 55,308 4,000 Itochu Corporation (Japan) 23,361 1,000 Nichiei Co. Ltd. (Japan) 61,707 ------------ 166,678 ------------ FOOD & BEVERAGES (.4%) 550 Heineken NV (Netherlands) 76,315 50 Nestle SA (Switzerland) 52,063 ------------ 128,378 ------------ INSURANCE (.6%) 2,000 AEGON NV (Netherlands) 69,184 25 Munich Reinsurance (Germany) 54,776 1,300 Skandia Foersaekrings AB (Sweden) 25,209 Union des Assurances Federales SA 400 (France) 49,224 ------------ 198,393 ------------ IRON & STEEL (.4%) 2,000 Hitachi Metals Ltd. (Japan) 22,441 6,000 Kawasaki Steel (Japan) 19,680 12,000 Nisshin Steel Co., Ltd. (Japan) 44,033 2,600 Outokumpu Oy (Finland) 43,222 Rio Tinto-Zinc Corp. PLC (United 4,000 Kingdom) 52,139 7,000 Sumitomo Metal Industries (Japan) 18,253 ------------ 199,768 ------------ LEISURE & ENTERTAINMENT (.3%) Carlton Communications PLC (United 3,300 Kingdom) 49,996 Television Broadcasts Ltd. (Hong 8,000 Kong) 28,122 400 TV Francaise (TF1) (France) 39,371 ------------ 117,489 ------------ NUMBER OF MARKET SHARES SECURITY VALUE MACHINERY & EQUIPMENT (.3%) 800 Mabuchi Motor Co. (Japan) $ 55,124 3,000 NSK Limited (Japan) 17,309 400 SMC Corp. (Japan) 22,984 ------------ 95,417 ------------ METALS & MINING (.2%) Broken Hill Proprietary Co. Ltd. 85 (Australia) 1,046 7,400 Poseidon Gold Ltd. (Australia) 14,937 Western Mining Corp. Holdings Ltd. 2,000 (Australia) 11,016 ------------ 26,999 ------------ MISCELLANEOUS (.1%) SGS Societe Generale de Surveillance Holding SA 30 (Switzerland) 52,106 ------------ OFFICE EQUIPMENT (.1%) 3,000 Canon Inc. (Japan) 48,847 ------------ OIL & GAS (1.3%) 23,000 Ampolex Ltd. (Australia) 52,310 5,000 British Gas Corp. (United Kingdom) 23,024 British Petroleum Co. Ltd. (United 6,000 Kingdom) 42,993 Compagnie Francaise de Petroleum 1,615 Total (France) 97,207 Enterprise Oil PLC (United 7,500 Kingdom) 47,240 Hong Kong & China Gas Company Ltd. 13,000 (Hong Kong) 20,749 800 Imperial Oil Ltd. (Canada) 29,778 16,000 Lasmo PLC (United Kingdom) 43,646 4,000 Saga Petroleum (Norway) 56,804 Societe Nationale Elf Aquitaine 535 (France) 39,535 ------------ 453,286 ------------ PAPER & FOREST PRODUCTS (.3%) 950 Metsa-Serla Oy (Finland) 42,262 800 Mo och Domsjo AB (Sweden) 46,155 ------------ 88,417 ------------ PRINTING & PUBLISHING (.2%) 1,500 De La Rue PLC (United Kingdom) 22,332 2,200 Elsevier NV (Netherlands) 25,983 400 Wolters-Kluwer NV (Netherlands) 35,289 ------------ 83,604 ------------ RETAIL TRADE (.3%) 90 Carrefour Supermarche SA (France) 46,101 LVMH Louis Vuitton Moet-Hennessy 270 (France) 48,587 ------------ 94,688 ------------
7 LIFESPAN BALANCED ACCOUNT (cont'd)
NUMBER OF MARKET SHARES SECURITY VALUE TELECOMMUNICATIONS (.3%) 1,200 Nokia AB (Finland) $ 70,241 10,000 Telecom Italia S.p.A (Italy) 27,105 ------------ 97,346 ------------ TELEPHONE UTILITIES (.2%) 5 DDI Corporation (Japan) 40,116 2,000 Telefonica de Espana (Spain) 25,759 ------------ 65,875 ------------ TOBACCO (.1%) 3,000 PT HM Sampoerna (Indonesia) 23,574 ------------ TOTAL FOREIGN COMMON STOCKS (COST $4,030,459) 4,011,612 ------------ CONVERTIBLE PREFERRED STOCKS (.3% OF NET ASSETS) ENERGY SERVICES J. Ray McDermott, SA (COST 2,300 $142,485) 118,450 ------------ FOREIGN PREFERRED STOCKS (.7% OF NET ASSETS) AUTO & AUTO RELATED (.1%) 13,500 Fiat S.p.A. (Italy) 29,372 ------------ COMPUTER BUSINESS & EQUIPMENT (.2%) 40 SAP AG (Germany) 50,401 ------------ CONGLOMERATES (.1%) 160 RWE AG (Germany) 44,012 ------------ ELECTRIC UTILITIES (.1%) 2,000,000 CEMIG (Brazil) 39,109 ------------ FINANCIAL SERVICES (.1%) 4,600,000 Banco Bradesco SA (Brazil) 38,979 ------------ TELECOMMUNICATIONS (.1%) Telecomunicacoes de Sao Paulo SA 350,000 (Brazil) 43,342 ------------ TOTAL FOREIGN PREFERRED STOCKS (COST ($244,716) 245,215 ------------ PRINCIPAL CORPORATE BONDS AMOUNT (16.8% OF NET ASSETS) APPAREL & TEXTILES (.3%) U.S. Leather, Inc. $ 100,000 10.25%, 2003 86,500 ------------ AUTO & AUTO RELATED (.2%) Venture Holdings 100,000 9.75%, 2004 83,500 ------------ BANKING (1.1%) BankAmerica Corp. 200,000 6.00%, 1997 198,610 First USA Bank of Delaware 100,000 5.35%, 1996 95,140 PRINCIPAL MARKET AMOUNT SECURITY VALUE Shawmut National Corp. $ 100,000 8.875%, 1996 $ 101,730 ------------ 395,480 ------------ CHEMICALS (.8%) Building Materials Corp. of America 200,000 0.00%, 2004 118,000 G-I Holdings 100,000 0.00%, 1998 67,000 Harris Chemical North America, Inc. 100,000 0.00%, 2001 90,750 ------------ 275,750 ------------ COMPUTER BUSINESS EQUIPMENT & SERVICES (.2%) Unisys Corp. 75,000 9.75%, 1996 76,688 ------------ DRUGS & COSMETICS (.8%) Revlon Consumer Products Corp. 100,000 9.375%, 2001 96,500 Roche Holdings Inc. 200,000 2.75%, 2000 170,250 ------------ 266,750 ------------ FINANCIAL SERVICES (.8%) Chrysler Financial Corp. 80,000 6.65%, 1997 80,815 General Motors Acceptance Corp. 200,000 5.65%, 1997 196,528 ------------ 277,343 ------------ HEALTH SERVICES (.6%) Continental Medical Systems, Inc. 100,000 10.875%, 2002 105,000 Integrated Health Services, Inc. 100,000 9.625%, 2002 102,000 ------------ 207,000 ------------ IRON & STEEL (.5%) Geneva Steel 50,000 9.50%, 2004 35,750 Republic Engineered Steels, Inc. 50,000 9.875%, 2001 45,250 Wierton Steel Corp. 100,000 10.75%, 2005 93,500 ------------ 174,500 ------------ LEASING (.3%) GPA Delaware, Inc. 100,000 8.75%, 1998 85,000 ------------ LEISURE & ENTERTAINMENT (3.1%) Adelphia Communications Corp. 50,000 12.50%, 2002 49,750 Australis Media Ltd. 150,000 0.00%, 2003 78,375
The accompanying notes are an integral part of these financial statements. 8 LIFESPAN BALANCED ACCOUNT (cont'd)
PRINCIPAL MARKET AMOUNT SECURITY VALUE Bally Park Place Funding $ 100,000 9.25%, 2004 $ 94,000 Bell Cablemedia PLC 150,000 0.00%, 2004 100,875 Comcast Corp. 100,000 9.375%, 2005 99,750 Greate Bay Property Funding 50,000 10.875%, 2004 42,500 GNF Corp. 100,000 10.625%, 2003 83,000 Helicon Group Ltd. 50,000 9.00%, 2003 46,125 Kloster Cruise Ltd. 50,000 13.00%, 2003 38,500 People's Choice TV Corp. 150,000 0.00%, 2004 71,250 Santa Fe Hotel 100,000 11.00%, 2000 93,500 Selmer Company, Inc. 100,000 11.00%, 2005 97,500 Trump Plaza Funding 100,000 10.875%, 2001 91,500 Trump Taj Mahal 100,000 0.00%, 1999 80,500 ------------ 1,067,125 ------------ MACHINERY & EQUIPMENT (.3%) Specialty Equipment Companies, Inc. 100,000 11.375%, 2003 102,750 ------------ MANUFACTURING (1.5%) American Standard, Inc. 100,000 0.00%, 2005 76,000 Day International Group, Inc. 100,000 11.125%, 2005 100,500 Huntsman Corp. 100,000 10.625%, 2001 105,500 Interlake Corp. 100,000 12.125%, 2002 98,750 International Wire Group, Inc. 100,000 11.75%, 2005 100,750 Jordan Industries, Inc. 50,000 10.375%, 2003 46,125 ------------ 527,625 ------------ OIL & GAS (.5%) Maxus Energy Corp. 100,000 9.875%, 2002 95,500 Mesa Capital CP 100,000 0.00%, 1998 90,500 ------------ 186,000 ------------ PAPER & FOREST PRODUCTS (1.7%) Crown Packaging Holdings Ltd. 200,000 0.00%, 2003 100,750 PRINCIPAL MARKET AMOUNT SECURITY VALUE Doman Industries Ltd. $ 100,000 8.75%, 2004 $ 95,000 Gaylord Container Corp. 100,000 0.00%, 2005 98,000 Grupo Industrial Durango 50,000 12.00%, 2001 37,585 Indah Kiat Pulp & Paper Corp. 100,000 11.875%, 2002 101,000 Malette, Inc. 100,000 12.25%, 2004 111,000 Stone Container Corp. 50,000 9.875%, 2001 49,563 ------------ 592,898 ------------ PRINTING & PUBLISHING (.1%) Marvel III Holdings Inc. 50,000 9.125%, 1998 46,250 ------------ RETAIL TRADE (2.5%) Cole National Corp. 100,000 11.25%, 2001 93,500 Dairy Mart Convenience Stores, Inc. 100,000 10.25%, 2004 84,500 Duane Reade, Inc. 100,000 12.00%, 2002 80,500 Farm Fresh, Inc. 100,000 12.25%, 2000 96,750 Hills Stores Co. 100,000 10.25%, 2003 99,000 Pathmark Stores, Inc. 200,000 0.00%, 2003 120,000 Penn Traffic Co. 100,000 9.625%, 2005 94,250 Ralph's Grocery Co. 100,000 11.00%, 2005 96,250 Waban, Inc. 100,000 11.00%, 2004 102,000 ------------ 866,750 ------------ TECHNOLOGY (.1%) Monarch Acquisition 50,000 12.50%, 2003 50,375 ------------ TELECOMMUNICATIONS (1.1%) Centennial Cellular Corp. 100,000 10.125%, 2005 98,500 Intermedia Communications of Florida, Inc. 100,000 13.50%, 2005 100,500 MFS Communications Company, Inc. 150,000 0.00%, 2004 104,250
9 LIFESPAN BALANCED ACCOUNT (cont'd) LIFESPAN CAPITAL APPRECIATION ACCOUNT ------------------------------------
PRINCIPAL MARKET AMOUNT SECURITY VALUE Nextel Communications, Inc. $ 200,000 0.00%, 2004 $ 96,000 ------------ 399,250 ------------ TRANSPORTATION (.3%) Federal Express Corp. 100,000 6.25%, 1998 99,246 ------------ TOTAL CORPORATE BONDS (COST $5,953,769) 5,866,780 ------------ U.S. GOVERNMENT & AGENCY LONG-TERM OBLIGATIONS (20.4% OF NET ASSETS) U.S. Treasury Bond 920,000 8.125%, 2019 1,070,365 U.S. Treasury Notes 2,000,000 7.375%, 1997 2,065,000 3,100,000 5.125%, 1998 3,040,418 920,000 7.25%, 2004 983,103 ------------ TOTAL U.S. GOVERNMENT & AGENCY LONG-TERM OBLIGATIONS (COST $6,924,556) 7,158,886 ------------ FOREIGN GOVERNMENT BONDS (.6% OF NET ASSETS) Province of Ontario 200,000 8.25%, 1996 (COST $203,559) 203,058 ------------ FOREIGN CURRENCY (.1% OF NET ASSETS) 3,904 Deutsche Mark 2,823 9,579 Finnish Markka 2,243 6,523 French Franc 1,344 15,257 Hong Kong Dollar 1,972 2,414 Netherlands Guilder 1,558 6,800 Norwegian Krone 1,104 2 Pound Sterling 4 10,923 Swedish Krona 1,502 2,616 Swiss Franc 2,272 ------------ TOTAL FOREIGN CURRENCY (COST $14,553) 14,822 ------------ REPURCHASE AGREEMENTS (3.5% OF NET ASSETS) State Street Bank & Trust Co. 5.50%, due 7/3/95 (COST 1,242,000 $1,242,000) 1,242,000 ------------ TIME DEPOSITS (2.0% OF NET ASSETS) State Street Bank & Trust Co. 3.50%, due 7/3/95 (COST 702,000 $702,000) 702,000 ------------ TOTAL INVESTMENTS (COST $33,967,943) $ 35,073,029 ------------ ------------
NUMBER OF MARKET SHARES SECURITY VALUE COMMON STOCKS (58.9% OF NET ASSETS) AEROSPACE (4.1%) 4,300 General Dynamics Corp. $ 190,813 4,500 General Motors Corp. Class H 177,750 4,900 Lockheed Martin Corp. 309,312 2,200 Loral Corp. 113,850 1,300 McDonnell Douglas Corp. 99,775 4,100 Rockwell International Corp. 187,575 ------------ 1,079,075 ------------ AIRLINES (.9%) 1,100 AMR Corp. 82,088 1,300 Delta Air Lines, Inc. 95,875 1,700 Northwest Airlines Corp. 60,138 ------------ 238,101 ------------ APPAREL & TEXTILES (.8%) 2,000 St. John Knits, Inc. 89,749 4,100 Tommy Hilfiger Corp. 114,800 ------------ 204,549 ------------ BANKING (3.1%) 5,500 Bank of New York Co., Inc. 222,063 3,800 Chase Manhattan Corp. 178,600 3,100 Morgan (J.P.) & Company, Inc. 217,388 1,100 Wells Fargo & Co. 198,275 ------------ 816,326 ------------ BUILDING MATERIALS & CONSTRUCTION (.1%) 800 USG Corp. 19,000 ------------ BUSINESS EQUIPMENT & SERVICES (.6%) 2,000 Medic Computer Systems, Inc. 77,000 4,700 New England Business Service, Inc. 92,825 ------------ 169,825 ------------ CHEMICALS (2.0%) 700 FMC Corp. 47,075 4,700 Grace (W.R.) & Co. 288,462 2,200 Monsanto Co. 198,275 ------------ 533,812 ------------ COMMERCIAL SERVICES (.5%) 1,500 Alternative Resources Corp. 39,750 2,500 Corrections Corporation of America 85,937 ------------ 125,687 ------------ COMPUTER BUSINESS EQUIPMENT & SERVICES (3.4%) 1,700 ALANTEC Corp. 58,225 1,000 Avid Technology, Inc. 37,500 2,900 Cognex Corp. 116,725 2,500 Digital Link Corp. 70,625 2,100 FileNet Corp. 84,788
The accompanying notes are an integral part of these financial statements. 10 LIFESPAN CAPITAL APPRECIATION ACCOUNT (cont'd)
NUMBER OF MARKET SHARES SECURITY VALUE 3,000 Frame Technology Corp. $ 87,750 2,300 Hyperion Software Corp. 104,075 2,200 McAfee Associates, Inc. 66,688 3,000 National Data Corp. 69,375 2,900 Optical Data Systems, Inc. 76,125 1,000 Progress Software Corp. 52,000 2,100 Wonderware Corp. 84,525 ------------ 908,401 ------------ CONGLOMERATES (1.2%) 1,100 AlliedSignal Inc. 48,950 7,400 Hanson PLC 130,424 3,000 Jardine Matheson Holdings Ltd. 22,050 2,200 Textron, Inc. 127,875 ------------ 329,299 ------------ DRUGS & COSMETICS (1.0%) 2,000 American Home Products Corp. 154,750 1,700 Circa Pharmaceuticals, Inc. 54,187 1,500 Watson Pharmaceuticals, Inc. 58,500 ------------ 267,437 ------------ ELECTRICAL & ELECTRONIC EQUIPMENT (5.4%) 3,100 C-Cube Microsystems, Inc. 84,475 2,000 Cidco, Inc. 62,750 3,150 Credence Systems Corp. 95,288 3,000 GaSonics International 85,500 1,900 Integrated Silicon Solution, Inc. 99,275 2,600 Itron, Inc. 81,250 1,900 Kemet Corp. 99,750 2,400 Lattice Semiconductor Corp. 82,500 600 Mattson Technology, Inc. 28,200 1,400 Micron Technology Inc. 76,825 1,200 Philips Electronics NV 51,300 2,500 Photronics, Inc. 76,875 3,200 S3, Inc. 115,200 2,500 Silicon Valley Group, Inc. 90,625 2,200 Tencor Instruments 90,200 3,000 Ultratech Stepper, Inc. 105,750 1,700 Vicor Corp. 76,394 1,100 VLSI Technology, Inc. 33,138 ------------ 1,435,295 ------------ ELECTRIC UTILITIES (3.1%) 5,400 FPL Group, Inc. 208,575 6,800 Illinova Corp. 172,550 5,000 Kansas City Power & Light Co. 114,375 7,600 Unicom Corp. 202,350 3,900 Western Resources, Inc. 120,412 ------------ 818,262 ------------ ENVIRONMENTAL CONTROL (.5%) 2,500 Newpark Resources, Inc. 52,500 2,200 United Waste Systems, Inc. 79,200 ------------ 131,700 ------------ NUMBER OF MARKET SHARES SECURITY VALUE FINANCIAL SERVICES (.2%) 3,400 National Auto Credit, Inc. $ 45,475 ------------ FOOD & BEVERAGES (1.2%) 3,700 Archer Daniels Midland Co. 68,913 3,200 Boston Chicken, Inc. 77,400 3,000 Landry's Seafood Restaurants, Inc. 60,000 1,500 Papa John's International, Inc. 52,500 2,100 Ralcorp Holdings, Inc. 48,038 ------------ 306,851 ------------ HEALTH SERVICES & HOSPITAL SUPPLIES (2.9%) 7,200 Baxter International Inc. 261,900 1,800 Columbia Healthcare Corp. 77,850 2,200 Community Health Systems, Inc. 74,525 2,000 Express Scripts, Inc. 70,500 3,000 Gulf South Medical Supply, Inc. 72,000 3,200 Maxicare Health Plans, Inc. 49,600 2,000 PhyCor, Inc. 70,250 2,800 Ren Corp. 44,450 4,100 TheraTx, Inc. 54,837 ------------ 775,912 ------------ INSURANCE (3.8%) 3,500 Aetna Life & Casualty Co. 220,062 5,400 American General Corp. 182,250 1,800 Healthsource, Inc. 63,000 3,500 Lincoln National Corp. 153,125 3,200 St. Paul Companies Inc. 157,600 2,300 TIG Holdings, Inc. 52,900 2,800 Travelers Group 122,500 1,500 Vesta Insurance Group, Inc. 51,561 ------------ 1,002,998 ------------ IRON & STEEL (1.1%) 1,600 Carpenter Technology Corp. 109,000 25,000 UNR Industries Inc. 184,375 ------------ 293,375 ------------ LEISURE & ENTERTAINMENT (1.4%) 1,500 Clear Channel Communications, Inc. 96,563 1,300 Grand Casinos, Inc. 45,988 1,900 Mattel, Inc. 49,400 2,500 Regal Cinemas, Inc. 80,000 1,700 Station Casinos, Inc. 29,325 3,000 TCA Cable TV, Inc. 81,000 ------------ 382,276 ------------ MACHINERY & EQUIPMENT (1.0%) 900 Caterpillar Inc. 57,825 1,600 Electroglas, Inc. 91,600 2,200 Mark IV Industries, Inc. 47,300 1,800 Parker-Hannifin Corp. 65,250 ------------ 261,975 ------------
11 LIFESPAN CAPITAL APPRECIATION ACCOUNT (cont'd)
NUMBER OF MARKET SHARES SECURITY VALUE MANUFACTURING (1.2%) 1,700 Black & Decker Corp. $ 52,488 3,300 FSI International, Inc. 76,931 1,900 Helix Technology Corp. 81,700 4,400 Lydall, Inc. 96,800 500 U.S. Industries 6,813 ------------ 314,732 ------------ METALS & MINING (.6%) 1,300 IMC Global Inc. 70,362 Potash Corporation of Saskatchewan 1,400 Inc. 78,225 ------------ 148,587 ------------ MISCELLANEOUS (.9%) 6,300 Dial Corp. 155,925 1,700 Premark International, Inc. 88,187 ------------ 244,112 ------------ OFFICE EQUIPMENT (.7%) 1,500 Xerox Corp. 175,875 ------------ OIL & GAS (4.9%) 2,700 Amoco Corp. 179,888 4,200 Chevron Corp. 195,825 2,100 Mobil Corp. 201,600 10,500 Panhandle Eastern Corp. 255,938 2,000 Repsol SA (Sponsored ADR) 63,250 1,600 Royal Dutch Petroleum Co. 195,000 2,000 Seitel, Inc. 62,000 4,300 Ultramar Corp. 108,575 1,500 YPF Sociedad Anonima (ADR) 28,313 ------------ 1,290,389 ------------ PAPER & FOREST PRODUCTS (.8%) 600 Georgia-Pacific Corp. 52,050 1,600 Scott Paper Co. 79,200 1,200 Willamette Industries, Inc. 66,600 ------------ 197,850 ------------ PRINTING & PUBLISHING (.1%) 800 Gartner Group, Inc. 23,200 ------------ REAL ESTATE (1.1%) 3,600 Camden Property Trust 78,750 6,300 Health & Retirement Property Trust 94,500 3,100 Meditrust Corp. 105,787 ------------ 279,037 ------------ RETAIL TRADE (3.4%) 3,100 American Stores Co. 87,188 3,300 Books-A-Million 51,563 1,700 CDW Computer Centers, Inc. 85,850 4,500 Corporate Express, Inc. 96,188 3,100 Dollar Tree Stores, Inc. 82,150 1,300 Eckerd Corp. 41,600 2,600 General Nutrition Companies, Inc. 91,325 2,700 Kroger Co. 72,563 NUMBER OF MARKET SHARES SECURITY VALUE 3,900 Sears, Roebuck & Co. $ 233,513 1,400 Sunglass Hut International, Inc. 49,000 ------------ 890,940 ------------ TECHNOLOGY (1.0%) 600 Applied Materials, Inc. 51,975 1,200 Compaq Computer Corp. 54,450 Computer Associates International, 1,100 Inc. 74,525 International Business Machine 900 Corp. 86,400 ------------ 267,350 ------------ TELCOMMUNICATIONS (1.3%) 1,000 Ascend Communications, Inc. 50,500 1,500 Aspect Telecommunications Corp. 67,125 3,200 Ericsson LM Tel. Co.(Spons. ADR) 64,000 3,000 LCI International, Inc. 91,875 1,500 Picturel Corp. 72,187 ------------ 345,687 ------------ TELEPHONE UTILITIES (2.2%) 5,100 Ameritech Corp. 224,400 4,900 GTE Corp. 167,212 4,400 NYNEX Corp. 177,100 ------------ 568,712 ------------ TOBACCO (1.5%) 4,400 American Brands, Inc. 174,900 2,900 Philip Morris Companies Inc. 215,687 ------------ 390,587 ------------ TRANSPORTATION (.6%) 1,500 Fritz Companies, Inc. 88,030 2,400 RailTex, Inc. 57,000 ------------ 145,030 ------------ WHOLESALE TRADE (.3%) 900 CellStar Corp. 21,037 1,600 Fusion Systems Corp. 54,800 ------------ 75,837 ------------ TOTAL COMMON STOCKS (COST $14,503,446) 15,503,556 ------------ FOREIGN COMMON STOCKS (15.2% OF NET ASSETS) AUTO & AUTO RELATED (.7%) 1,000 Autoliv AB (Sweden) 53,499 1,000 Michelin CGDE (France) 44,297 3,000 Shinmaywa Industries Ltd. (Japan) 25,167 700 Valeo SA (France) 34,038 2,000 Volvo AB (Sweden) 38,096 ------------ 195,097 ------------ BANKING (1.3%) 400 Banco Popular Espanol (Spain) 59,443 1,500 Banco Santander SA (Spain) 59,133
The accompanying notes are an integral part of these financial statements. 12 LIFESPAN CAPITAL APPRECIATION ACCOUNT (cont'd)
NUMBER OF MARKET SHARES SECURITY VALUE Bangkok Bank Company Ltd. 4,000 (Thailand) $ 44,075 1,000 Deutsche Bank AG (Germany) 48,594 1,200 HSBC Holdings PLC (United Kingdom) 15,392 6,000 Malayan Banking Berhad (Malaysia) 47,498 200 Societe Generale Paris (France) 23,375 4,500 Thai Farmers Bank Ltd. (Thailand) 43,022 ------------ 340,532 ------------ BUILDING MATERIALS & CONSTRUCTION (.1%) PT Indocement Tunggal Prakar 6,000 (Indonesia) 23,574 ------------ CHEMICALS (.3%) 200 Akzo Nobel (Netherlands) 23,904 225 Bayer AG (Germany) 55,969 ------------ 79,873 ------------ COMPUTER BUSINESS EQUIPMENT & SERVICES (.3%) 5,000 Fujitsu Ltd. (Japan) 49,850 600 Getronics NV (Netherlands) 29,390 ------------ 79,240 ------------ CONGLOMERATES (1.2%) Alusuisse-Lonza Holding AG 70 (Switzerland) 43,891 2,000 Canadian Pacific Ltd. (Canada) 34,583 13,000 Hanson PLC (United Kingdom) 45,387 10,000 Hutchison Whampoa Ltd. (Hong Kong) 48,334 180 Mannesmann AG (Germany) 54,993 22,000 Renong Berhad (Malaysia) 40,968 100 Viag AG (Germany) 39,468 ------------ 307,624 ------------ DRUGS & COSMETICS (1.8%) 1,800 Astra AB (Sweden) 55,576 100 Ciba-Geigy AG (Switzerland) 73,296 5,000 PT Kalbe Farma (Indonesia) 22,901 100 Sandoz AG (Switzerland) 68,954 1,000 Schering AG (Germany) 69,853 SmithKline Beecham (United 8,000 Kingdom) 72,403 SmithKline Bch/Bec Units (United 5,000 Kingdom) 44,377 4,000 Zeneca Group PLC (Germany) 67,536 ------------ 474,896 ------------ ELECTRIC UTILITIES (.4%) 3,300 Powergen PLC (United Kingdom) 25,326 200 VEBA AG (Germany) 78,603 ------------ 103,929 ------------ NUMBER OF MARKET SHARES SECURITY VALUE ELECTRICAL & ELECTRONIC EQUIPMENT (1.8%) BBC AG Brown Boveri & Cie. 65 (Switzerland) $ 67,286 5,000 Hitachi Ltd. (Japan) 49,850 200 Keyence Corp. (Japan) 22,418 1,000 Kyocera Corp. (Japan) 82,355 Matsushita Electric Industrial Co. 3,000 Ltd. (Japan) 46,723 Philips Electronics NV 2,000 (Netherlands) 84,672 1,000 Pioneer Electronic Corp. (Japan) 16,990 1,000 Sony Corp. (Japan) 48,021 Sumitomo Electric Industries Ltd. 4,000 (Japan) 47,667 ------------ 465,982 ------------ FINANCIAL SERVICES (.6%) 220 Compagnie Bancaire SA (France) 26,302 International Nederlanden Groep NV 1,000 (Netherlands) 55,308 4,000 Itochu Corporation (Japan) 23,361 1,000 Nichiei Co. Ltd. (Japan) 61,707 ------------ 166,678 ------------ FOOD & BEVERAGES (.5%) 550 Heineken NV (Netherlands) 76,315 50 Nestle SA (Switzerland) 52,063 ------------ 128,378 ------------ INSURANCE (.7%) 2,000 AEGON N.V. (Netherlands) 69,184 25 Munich Reinsurance (Germany) 54,776 1,300 Skandia Foersaekrings AB (Sweden) 25,209 Union des Assurances Federales SA 400 (France) 49,224 ------------ 198,393 ------------ IRON &STEEL (.6%) 2,000 Hitachi Metals Ltd. (Japan) 22,441 6,000 Kawasaki Steel (Japan) 19,680 12,000 Nisshin Steel Co. Ltd. (Japan) 44,033 2,600 Outokumpu Oy (Finland) 43,222 Rio Tinto-Zinc Corp. PLC (United 4,000 Kingdom) 52,139 7,000 Sumitomo Metal Industries (Japan) 18,253 ------------ 199,768 ------------ LEISURE & ENTERTAINMENT (.4%) Carlton Communications PLC (United 3,300 Kingdom) 49,996 Television Broadcasts Ltd. (Hong 8,000 Kong) 28,122 400 TV Francaise (TF1) (France) 39,371 ------------ 117,489 ------------ MACHINERY & EQUIPMENT (.4%) 800 Mabuchi Motor Co. (Japan) 55,124
13 LIFESPAN CAPITAL APPRECIATION ACCOUNT (cont'd)
NUMBER OF MARKET SHARES SECURITY VALUE 3,000 NSK Limited (Japan) $ 17,309 400 SMC Corp. (Japan) 22,984 ------------ 95,417 ------------ METALS & MINING (.3%) Broken Hill Proprietary Co. Ltd. 85 (Australia) 1,046 7,400 Poseidon Gold Ltd. (Australia) 14,937 Western Mining Corp. Holdings Ltd. 2,000 (Australia) 11,016 ------------ 26,999 ------------ MISCELLANEOUS (.2%) SGS Societe Generale de Surveillance Holding SA 30 (Switzerland) 52,106 ------------ OFFICE EQUIPMENT (.2%) 3,000 Canon Inc. (Japan) 48,847 ------------ OIL & GAS (1.7%) 23,000 Ampolex Ltd. (Australia) 52,310 5,000 British Gas Corp. (United Kingdom) 23,024 British Petroleum Co. Ltd. (United 6,000 Kingdom) 42,993 Compagnie Francaise de Petroleum 1,615 Total (France) 97,207 Enterprise Oil PLC (United 7,500 Kingdom) 47,240 Hong Kong & China Gas Company Ltd. 13,000 (Hong Kong) 20,749 800 Imperial Oil Ltd. (Canada) 29,778 16,000 Lasmo PLC (United Kingdom) 43,646 4,000 Saga Petroleum (Norway) 56,804 Societe Nationale Elf Aquitaine 535 (France) 39,535 ------------ 453,286 ------------ PAPER & FOREST PRODUCTS (.3%) 950 Metsa-Serla Oy (Finland) 42,262 800 Mo och Domsjo AB (Sweden) 46,155 ------------ 88,417 ------------ PRINTING & PUBLISHING (.3%) 1,500 De La Rue PLC (United Kingdom) 22,332 2,200 Elsevier NV (Netherlands) 25,983 400 Wolters-Kluwer NV (Netherlands) 35,289 ------------ 83,604 ------------ RETAIL TRADE (.4%) 90 Carrefour Supermarche SA (France) 46,101 LVMH Louis Vuitton Moet-Hennessy 270 (France) 48,587 ------------ 94,688 ------------ TELECOMMUNICATIONS (.4%) 1,200 Nokia AB (Finland) 70,241 NUMBER OF MARKET SHARES SECURITY VALUE 10,000 Telecom Italia S.p.A (Italy) $ 27,105 ------------ 97,346 ------------ TELEPHONE UTILITIES (.2%) 5 DDI Corporation(Japan) 40,116 2,000 Telefonica de Espana (Spain) 25,759 ------------ 65,875 ------------ TOBACCO (.1%) 3,000 PT HM Sampoerna (Indonesia) 23,574 ------------ TOTAL FOREIGN COMMON STOCKS 304,065 (COST $4,030,459) 4,011,612 ------------ CONVERTIBLE PREFERRED STOCKS (.4% OF NET ASSETS) ENERGY SERVICES J. Ray McDermott, SA 2,300 (COST $142,485) 118,450 ------------ FOREIGN PREFERRED STOCKS (.9% OF NET ASSETS) AUTO & AUTO RELATED (.1%) 13,500 Fiat S.p.A.(Italy) 29,372 ------------ COMPUTER BUSINESS & EQUIPMENT (.2%) 40 SAP AG (Germany) 50,401 ------------ CONGLOMERATES (.2%) 160 RWE AG (Germany) 44,012 ------------ ELECTRIC UTILITIES (.1%) 2,000,000 CEMIG (Brazil) 39,109 ------------ FINANCIAL SERVICES (.1%) 4,600,000 Banco Bradesco S.A. (Brazil) 38,979 ------------ TELECOMMUNICATIONS (.2%) Telecomunicacoes de Sao Paulo SA 350,000 (Brazil) 43,342 ------------ TOTAL FOREIGN PREFERRED STOCKS (COST $244,716) 245,215 ------------ PRINCIPAL CORPORATE BONDS AMOUNT (9.3% OF NET ASSETS) APPAREL & TEXTILES (.2%) U.S. Leather, Inc. $ 50,000 10.25%, 2003 43,251 ------------ AUTO & AUTO RELATED (.1%) Venture Holdings 50,000 9.75%, 2004 41,750 ------------ CHEMICALS (.5%) Building Materials Corp. of America 100,000 0.00%, 2004 59,000 G-I Holdings 50,000 0.00%, 1998 33,500
The accompanying notes are an integral part of these financial statements. 14 LIFESPAN CAPITAL APPRECIATION ACCOUNT (cont'd)
PRINCIPAL MARKET AMOUNT SECURITY VALUE Harris Chemical North America, Inc. $ 50,000 0.00%, 2001 $ 45,375 ------------ 137,875 ------------ DRUGS & COSMETICS (.2%) Revlon Consumer Products Corp. 50,000 9.375%, 2001 48,250 ------------ HEALTH SERVICES (.4%) Continental Medical Systems, Inc. 50,000 10.875%, 2002 52,500 Integrated Health Services, Inc. 50,000 9.625%, 2002 51,000 ------------ 103,500 ------------ IRON & STEEL (.3%) Geneva Steel 25,000 9.50%, 2004 17,875 Republic Engineered Steels, Inc. 25,000 9.875%, 2001 22,625 Wierton Steel Corp. 50,000 10.75%, 2005 46,750 ------------ 87,250 ------------ LEASING (.2%) GPA Delaware, Inc. 50,000 8.75%, 1998 42,500 ------------ LEISURE & ENTERTAINMENT (2.1%) Adelphia Communications Corp. 25,000 12.50%, 2002 24,875 Australis Media Ltd. 75,000 0.00%, 2003 39,188 Bally Park Place Funding 50,000 9.25%, 2004 47,000 Bell Cablemedia PLC 75,000 0.00%, 2004 50,438 Comcast Corp. 50,000 9.375%, 2005 49,875 Greate Bay Property Funding 25,000 10.875%, 2004 21,250 GNF Corp. 50,000 10.625%, 2003 41,500 Helicon Group Ltd. 50,000 9.00%, 2003 46,125 Kloster Cruise Ltd. 25,000 13.00%, 2003 19,250 People's Choice TV Corp. 75,000 0.00%, 2004 35,625 Santa Fe Hotel 50,000 11.00%, 2000 46,750 Selmer Company, Inc. 50,000 11.00%, 2005 48,750 Trump Plaza Funding 50,000 10.875%, 2001 45,750 PRINCIPAL MARKET AMOUNT SECURITY VALUE Trump Taj Mahal $ 50,000 0.00%, 1999 $ 40,250 ------------ 556,626 ------------ MACHINERY & EQUIPMENT (.2%) Specialty Equipment Companies, Inc. 50,000 11.375%, 2003 51,375 ------------ MANUFACTURING (1.0%) American Standard, Inc. 50,000 0.00%, 2005 38,000 Day International Group, Inc. 50,000 11.125%, 2005 50,250 Huntsman Corp. 50,000 10.625%, 2001 52,750 Interlake Corp. 50,000 12.125%, 2002 49,375 International Wire Group, Inc. 50,000 11.75%, 2005 50,375 Jordan Industries, Inc. 25,000 10.375%, 2003 23,063 ------------ 263,813 ------------ OIL & GAS (.4%) Maxus Energy Corp. 50,000 9.875%, 2002 47,750 Mesa Capital CP 50,000 0.00%, 1998 45,250 ------------ 93,000 ------------ PAPER & FOREST PRODUCTS (1.2%) Crown Packaging Holdings Ltd. 100,000 0.00%, 2003 50,375 Doman Industries Ltd. 50,000 8.75%, 2004 47,500 Gaylord Container Corp. 50,000 0.00%, 2005 49,000 Grupo Industrial Durango 25,000 12.00%, 2001 18,750 Indah Kiat Pulp & Paper Corp. 50,000 11.875%, 2002 50,500 Malette, Inc. 50,000 12.25%, 2004 55,500 Stone Container Corp. 50,000 9.875%, 2001 49,562 ------------ 321,187 ------------ PRINTING & PUBLISHING (.1%) Marvel III Holdings Inc. 25,000 9.125%, 1998 23,124 ------------ RETAIL TRADE (1.6%) Cole National Corp. 50,000 11.25%, 2001 46,750 Dairy Mart Convenience Stores, Inc. 50,000 10.25%, 2004 42,250
15 LIFESPAN CAPITAL APPRECIATION ACCOUNT (cont'd)
PRINCIPAL MARKET AMOUNT SECURITY VALUE Duane Reade, Inc. $ 50,000 12.00%, 2002 $ 40,250 Farm Fresh, Inc. 50,000 12.25%, 2000 48,375 Hills Stores Co. 50,000 10.25%, 2003 49,500 Pathmark Stores, Inc. 100,000 0.00%, 2003 60,000 Penn Traffic Co. 50,000 9.625%, 2005 47,125 Ralph's Grocery Co. 50,000 11.00%, 2005 48,125 Waban, Inc. 50,000 11.00%, 2004 51,000 ------------ 433,375 ------------ TELECOMMUNICATIONS (.8%) Centennial Cellular Corp. 50,000 10.125%, 2005 49,250 Intermedia Communications of Florida, Inc. 50,000 13.50%, 2005 50,250 MFS Communications Company, Inc. 75,000 0.00%, 2004 52,125 Nextel Communications, Inc. 100,000 0.00%, 2004 48,000 ------------ 199,625 ------------ TOTAL CORPORATE BONDS (COST $2,486,385) 2,446,501 ------------ U.S. GOVERNMENT & AGENCY LONG-TERM OBLIGATIONS (9.7% OF NET ASSETS) U.S. Treasury Bond 460,000 8.125%, 2019 535,182 PRINCIPAL MARKET AMOUNT SECURITY VALUE U.S. Treasury Notes $ 1,550,000 5.125%, 1998 $ 1,520,209 460,000 7.25%, 2004 491,551 ------------ TOTAL U.S. GOVERNMENT & AGENCY LONG-TERM OBLIGATIONS (COST $2,446,731) 2,546,942 ------------ FOREIGN CURRENCY (.1% OF NET ASSETS) 3,904 Deutsche Mark 2,626 9,579 Finnish Markka 2,243 6,523 French Franc 1,345 15,257 Hong Kong Dollar 1,972 2,414 Netherlands Guilder 1,558 6,800 Norwegian Krone 1,104 4 Pound Sterling 7 10,923 Swedish Krona 1,502 1,641 Swiss Franc 1,425 ------------ TOTAL FOREIGN CURRENCY (COST $13,517) 13,782 ------------ REPURCHASE AGREEMENTS (3.2% OF NET ASSETS) State Street Bank & Trust Co. 5.50%, due 7/3/95 (COST 837,000 $837,000) 837,000 ------------ TIME DEPOSITS (2.6% OF NET ASSETS) State Street Bank & Trust Co. 3.50%, due 7/3/95 (COST 695,000 $695,000) 695,000 ------------ TOTAL INVESTMENTS (COST $25,399,739) $ 26,418,058 ------------ ------------
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, DIVERSIFIED CAPITAL AP- 1995, based on cost for Federal income tax purposes, was as follows: INCOME BALANCED PRECIATION Aggregate gross unrealized appreciation $ 575,291 $1,508,306 $ 1,358,483 Aggregate gross unrealized depreciation (133,059) (403,220) (340,164) -------------- -------------- -------------- Net unrealized appreciation $ 442,232 $1,105,086 $ 1,018,319 -------------- -------------- -------------- -------------- -------------- -------------- 2. The aggregate cost of investments for Federal income tax purposes was: $20,225,344 $33,967,943 $ 25,399,739 -------------- -------------- -------------- -------------- -------------- -------------- 3. Purchases and sales of securities (excluding short-term securities) for the six months ended June 30, 1995 are summarized as follows: Purchases $21,620,374 $36,218,870 $ 25,059,402 Sales $2,153,883 $4,149,171 $ 1,102,671
The accompanying notes are an integral part of these financial statements. 16 STATEMENT OF NET ASSETS CONNECTICUT MUTUAL INVESTMENT ACCOUNTS, INC. June 30, 1995 (Unaudited) L I F E S P A N A C C O U N T S
DIVERSIFIED CAPITAL INCOME BALANCED APPRECIATION ASSETS Investments: Bonds, at market value (Cost $14,615,177, $13,081,884, $4,933,116) $14,899,648 $13,228,724 $ 4,993,443 Common stocks, at market value (Cost $4,762,682, $18,540,305, $18,533,905) 4,943,041 19,521,818 19,515,168 Preferred stocks, at market value (Cost $142,485, $387,201, $387,201) 119,887 363,665 363,665 Foreign currency, at market value (Cost $14,553, $13,517) -- 14,822 13,782 Short-term securities 705,000 1,944,000 1,532,000 ------------ ------------ ------------ 20,667,576 35,073,029 26,418,058 Cash 1,239 4,286 100,209 Investment income receivable 266,854 260,678 133,272 Receivable from securities sold 76,741 52,233 52,233 Receivable from Fund shares sold 145,125 -- -- Foreign tax receivable -- 3,316 3,121 ------------ ------------ ------------ Total Assets 21,157,535 35,393,542 26,706,893 ------------ ------------ ------------ LIABILITIES Accrued expenses payable 33,923 56,501 42,393 Payable for securities purchased 75,000 331,429 331,429 Foreign currency market payable -- 3,336 3,334 ------------ ------------ ------------ Total Liabilities 108,923 391,266 377,156 ------------ ------------ ------------ NET ASSETS $21,048,612 $35,002,276 $26,329,737 ------------ ------------ ------------ ------------ ------------ ------------ OUTSTANDING SHARES 2,053,427 3,394,150 2,539,828 ------------ ------------ ------------ ------------ ------------ ------------ NET ASSET VALUE PER SHARE $10.25 $10.31 $10.37 ------ ------ ------ ------ ------ ------ NET ASSETS CONSIST OF: Capital (par value and paid-in surplus) $20,548,744 $33,955,503 $25,409,189 Undistributed net investment income 22,783 30,048 19,265 Accumulated undistributed net realized gain (loss) 34,853 (85,025) (113,702) Net unrealized appreciation 442,232 1,101,750 1,014,985 ------------ ------------ ------------ NET ASSETS $21,048,612 $35,002,276 $26,329,737 ------------ ------------ ------------ ------------ ------------ ------------
17 The accompanying notes are an integral part of these financial statements. STATEMENT OF OPERATIONS CONNECTICUT MUTUAL INVESTMENT ACCOUNTS, INC. For the period from May 1, 1995 (Inception) to June 30, 1995 (Unaudited) L I F E S P A N A C C O U N T S
DIVERSIFIED CAPITAL INCOME BALANCED APPRECIATION INVESTMENT INCOME Income: Interest $189,468 $ 225,282 $ 118,607 Dividends 38,966 96,704 96,521 --------- ----------- ----------- Total Income 228,434 321,986 215,128 --------- ----------- ----------- Expenses: Investment advisory fees 25,313 47,682 35,739 Distribution fees 8,438 14,024 10,511 Other 16,875 25,244 18,921 --------- ----------- ----------- Total Expenses 50,626 86,950 65,171 --------- ----------- ----------- NET INVESTMENT INCOME 177,808 235,036 149,957 --------- ----------- ----------- REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS Net realized gain (loss) on investments 34,853 (75,466) (104,358) Net realized loss on foreign currency -- (9,559) (9,344) Net unrealized appreciation on investments 442,232 1,105,086 1,018,319 Net unrealized depreciation on foreign currency -- (3,336) (3,334) --------- ----------- ----------- NET REALIZED AND UNREALIZED GAIN ON INVESTMENTS 477,085 1,016,725 901,283 --------- ----------- ----------- NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS $654,893 $1,251,761 $1,051,240 --------- ----------- ----------- --------- ----------- -----------
The accompanying notes are an integral part of these financial statements. 18 STATEMENT OF CHANGES IN NET ASSETS CONNECTICUT MUTUAL INVESTMENT ACCOUNTS, INC. For the period from May 1, 1995 (Inception) to June 30, 1995 (Unaudited) L I F E S P A N A C C O U N T S
DIVERSIFIED CAPITAL INCOME BALANCED APPRECIATION INCREASE IN NET ASSETS FROM OPERATIONS: Net investment income $ 177,808 $ 235,036 $ 149,957 Net realized gain (loss) on investments 34,853 (75,466) (104,358) Net realized loss on foreign currency -- (9,559) (9,344) Net unrealized appreciation 442,232 1,101,750 1,014,985 ------------ ------------ ------------ Net increase in net assets resulting from operations 654,893 1,251,761 1,051,240 ------------ ------------ ------------ DIVIDENDS TO SHAREHOLDERS FROM: Net investment income (155,025) (204,988) (130,692) Net realized gain from investment transactions -- -- -- ------------ ------------ ------------ (155,025) (204,988) (130,692) ------------ ------------ ------------ FROM CAPITAL SHARE TRANSACTIONS: Net proceeds from sale of shares 20,395,511 33,750,515 25,288,802 Net asset value of shares issued to shareholders from reinvestment of dividends 153,233 204,988 130,692 Cost of shares reacquired -- -- (10,305) ------------ ------------ ------------ Increase in net assets derived from capital share transactions 20,548,744 33,955,503 25,409,189 ------------ ------------ ------------ NET INCREASE IN NET ASSETS 21,048,612 35,002,276 26,329,737 NET ASSETS -- BEGINNING OF PERIOD -- -- -- ------------ ------------ ------------ NET ASSETS -- END OF PERIOD $21,048,612 $35,002,276 $26,329,737 ------------ ------------ ------------ ------------ ------------ ------------ Undistributed net investment income included in net assets at end of period $22,783 $30,048 $19,265 ------------ ------------ ------------ ------------ ------------ ------------ Undistributed net realized gain (loss) on investments included in net assets at end of period $34,853 $(75,466) $(104,358) ------------ ------------ ------------ ------------ ------------ ------------
The accompanying notes are an integral part of these financial statements. 19 FINANCIAL HIGHLIGHTS CONNECTICUT MUTUAL INVESTMENT ACCOUNTS, INC. For the period from May 1, 1995 (Inception) to June 30, 1995 (Unaudited) Selected data for a share of capital stock outstanding throughout the period:
NET REALIZED DISTRIBUTIONS YEAR DIVIDENDS & UNREALIZED FROM NET NET ASSET NET ASSET ENDED NET FROM NET GAIN (LOSS) REALIZED VALUE AT VALUE AT DECEMBER INVESTMENT INVESTMENT ON GAIN ON BEGINNING END 31 INCOME INCOME INVESTMENTS INVESTMENTS OF PERIOD OF PERIOD - ---------------------------------------------------------------------------------------------- LIFESPAN DIVERSIFIED INCOME ACCOUNT 1995(a) $ .09 $ (.08) $ .24 $ -- $ 10.00 $ 10.25 LIFESPAN BALANCED ACCOUNT 1995(a) $ .07 $ (.06) $ .30 $ -- $ 10.00 $ 10.31 LIFESPAN CAPITAL APPRECIATION ACCOUNT 1995(a) $ .06 $ (.05) $ .36 $ -- $ 10.00 $ 10.37 RATIO OF RATIO OF NET YEAR EXPENSES TO INCOME TO NET ASSETS ENDED AVERAGE AVERAGE AT END ANNUAL DECEMBER NET NET PORTFOLIO OF PERIOD TOTAL 31 ASSETS(B) ASSETS(B) TURNOVER(B) (IN THOUSANDS) RETURN(C) - ---------- ----------------------------------------------------------------------- LIFESPAN D 1995(a) 1.50% 5.27% 65.86% $ 21,049 3.27% LIFESPAN B 1995(a) 1.55% 4.19% 78.13% $ 35,002 3.71% LIFESPAN C 1995(a) 1.55% 3.57% 27.81% $ 26,330 4.22% (a) For the period from May 1, 1995 (Inception) to June 30, 1995 (b) Annualized (c) Annual total returns do not include the effect of sales charges
20 NOTES TO FINANCIAL STATEMENTS CONNECTICUT MUTUAL INVESTMENT ACCOUNTS, INC. For the period from May 1, 1995 (Inception) to 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 three LifeSpan Accounts included in these financial statements: Diversified Income, Balanced and Capital Appreciation. 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 - 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. (b)FOREIGN CURRENCY TRANSACTIONS - Foreign currency transactions are translated to U. S. dollars at the prevailing exchange rate on the trade date. Since investment transactions are recorded on a trade date basis, the prevailing exchange rate may differ on actual settlement date. Similarly, the prevailing exchange rate on ex-dividend or interest receivable date may vary from the date when dividends or interest are received. These differences give rise to currency gains and losses which are included as a component of investment income. For the two months ended June 30, 1995, the Balanced Account and the Capital Appreciation Account had net currency gains of $6,050 and $5,867, respectively. (c)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 owns 7,887,268 shares of the three LifeSpan Accounts of the Fund as follows: Diversified Income Balanced Capital Appreciation 2,014,946 3,359,773 2,512,549 (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. Subject to review by the Board of Directors of the Fund, the Investment Adviser is responsible for the investment management (the buying, holding and selling of securities) for all Accounts and has engaged three Sub-Advisers to assist in the selection of portfolio investments for three of the Components of the Accounts. Scudder, Stevens & Clark, Inc. is the Sub-Adviser to the International Equity Component, BEA Associates is the Sub-Adviser to the High Yield Bond Component and Pilgrim Baxter & Associates is the Sub-Adviser to the Small Cap Component. The Fund's Board of Directors has approved all Sub-Advisory Agreements. The Investment Adviser performs certain administrative services for all the Accounts. The Diversified Income Account, Balanced Account and Capital Appreciation Account each pay monthly to the Investment Adviser a fee equal on an annual basis to 0.75%, 0.85% and 0.85%, respectively, of the respective Accounts' first $250 million of average daily net assets and 0.65%, 0.75% and 0.75%, respectively, on such assets over $250 million. 21 The investment advisory fees, which also cover certain administrative and management services, amounted to $108,734 for all Accounts for the two months ended June 30, 1995. As compensation for their services to the Accounts, the Sub-Advisers received the following fees for the two months ending June 30, 1995: Scudder, Stevens & Clark, Inc. - $12,387, BEA Associates - $7,807 and Pilgrim Baxter & Associates - $10,196. For the two months ended June 30, 1995, the Investment Adviser, serving as principal underwriter for sale of shares of the Accounts, earned $21,957 related to sales charges deducted from proceeds for shares sold. On May 1, 1995, each Account 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 pays G. R. Phelps & Co., Inc. (the Distributor) a fee as reimbursement for its expenditures incurred in distributing and servicing shares of the Account. The Accounts accrue fees daily and pay 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 $32,973 in fees from these Accounts. 3. DISTRIBUTIONS TO SHAREHOLDERS Dividends from net investment income are declared and paid monthly for the Diversified Income Account and semi-annually for the Balanced and Capital Appreciation Accounts. All net realized capital gains, 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, three 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 PERIOD FROM MAY 1, 1995 (INCEPTION) TO JUNE 30, 1995 DIVERSIFIED CAPITAL INCOME BALANCED APPRECIATION Shares authorized (in millions) 200 200 200 ---- ---- ---- ---- ---- ---- Shares sold 2,038,477 3,374,190 2,528,138 Shares issued to shareholders from reinvestment of dividends 14,950 19,960 12,689 ------------ ---------- ------------- Total issued 2,053,427 3,394,150 2,540,827 Shares reacquired -- -- (999) ------------ ---------- ------------- Net increase 2,053,427 3,394,150 2,539,828 ------------ ---------- ------------- ------------ ---------- -------------
22 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-----