-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, CucE2q/3dxSvGvJ5+e4mF2ywYLHvuNkKXM5C4aWPykGQ/WjVBrzjn4L8rCixkIY5 rfKs+bOeOnVobQHnEGOgXQ== 0000912057-96-006306.txt : 19960416 0000912057-96-006306.hdr.sgml : 19960416 ACCESSION NUMBER: 0000912057-96-006306 CONFORMED SUBMISSION TYPE: N-30D PUBLIC DOCUMENT COUNT: 1 CONFORMED PERIOD OF REPORT: 19951231 FILED AS OF DATE: 19960411 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: 96546370 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 ANNUAL REPORT DEAR CMIA LIFESPAN SHAREHOLDER: I'm pleased to announce that in their first seven months of existence, the CMIA LifeSpan Accounts have turned in double-digit returns. Introduced in May, 1995, CMIA LifeSpan was able to take advantage of the impressive performance of the stock and bond markets last year. It was a year in which the Dow Jones Industrial Average exceeded 5200 and the yield on the 30 year Treasury bond dropped by almost 200 basis points. What went right for the markets in 1995? Just about everything that mattered. We entered the year with a strong economy. The Central Bank, in a tightening mode, had been increasing interest rates to head off inflation. The November elections brought victory for the Republicans in Congress, signaling a better political time for markets. As expected, the increasing interest rates of 1994 and early 1995 put the brakes on the economy slowing it sufficiently to avoid higher inflation, but not enough to cause a recession. The Fed began to ease its grip on interest rates, the dollar gathered strength, and inflation remained low -- setting a positive tone for both the bond and stock markets. At the same time, corporate earnings grew vigorously and the federal government continued moving toward greater fiscal responsibility -- contributing to a superlative year for the stock market. Because our portfolio managers were anticipating this type of environment the Accounts within CMIA were able to capitalize on market trends. All of the LifeSpan Accounts performed well in their respective categories. During the last seven months of 1995, the LifeSpan Accounts performed as follows: - - Diversified Income Account -- up 11.22 percent - - Balanced Account -- up 15.33 percent - - Capital Appreciation Account -- up 18.02 percent. We are certainly pleased with the performance of CMIA [ho]LifeSpan since its inception, and will continue to monitor economic and market conditions to help maintain it's position as a top-performing life-cycle fund. You will likely find that the expertise of our investment professionals is even more valuable as we grapple with the federal budget battle and anticipate the presidential elections in the months ahead. ECONOMIC FORECAST: FIRST AND SECOND QUARTERS 1996 A look ahead at 1996 shows a continuation of 1995, with low inflation, a slow economy and continued reductions in interest rates by the Fed. This scenario -- combined with a strong dollar and decreasing rates overseas -- provides a favorable backdrop for the bond market, although most of the rally seems to be behind us. A strong bond market and low interest rates should fuel more growth in the stock market. That growth could, however, be dampened by lackluster corporate earnings, which could introduce downward pressure on the market and create volatility. Our investment managers are also keeping a close eye on Washington. Although the current battle over the federal budget appears to represent another step in the march toward fiscal responsibility, it could also create short-term volatility in the markets. The presidential election in November bears watching, as well. Overall, the fundamentals remain positive: a slowing (but still growing) economy, little inflation, improving prospects of a balanced federal budget and falling short-term interest rates. Until these dynamics change, we look forward to another strong year in the financial markets. SUMMARY For most investors, the current bull market is a dream come true. But, anyone who has watched the market over time knows that circumstances can change quickly and double-digit returns can easily dwindle. Successful investors anticipate those ups and downs and ride them out -- because they know that, in the long run, the stock market has provided financial rewards. That's why we, too, stick to a tried and true investment discipline designed to work in good times and in bad, over time. On the whole, we are pleased with the results of CMIA LifeSpan thus far and we hope you share our enthusiasm and optimism for the coming year. If you want to know more about CMIA LifeSpan and the options available to you, talk to your registered representative or call 1-800-234-5606, press 1. 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 LIFESPAN CAPITAL APPRECIATION ACCOUNT (CAPITAL APPRECIATION ACCOUNT) The LifeSpan Capital Appreciation Account is designed for the investor seeking capital appreciation. The Capital Appreciation Account seeks long-term capital appreciation through a strategically allocated portfolio consisting of primarily equity securities. Current income is not a primary consideration. CMIA LIFESPAN BALANCED ACCOUNT (BALANCED ACCOUNT) The CMIA LifeSpan Balanced Account is designed for the investor seeking a blend of 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 stronger emphasis on equity securities. CMIA LIFESPAN DIVERSIFIED INCOME ACCOUNT (DIVERSIFIED INCOME ACCOUNT) The CMIA LifeSpan Diversified Income 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 op- portunities for capital appreciation, through a strategically allo- cated 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.
DIVERSIFIED BALANCED CAPITAL INCOME ACCOUNT ACCOUNT APPRECIATION ACCOUNT There were no changes made to the There were no changes made to the During the fourth quarter there were investment allocation of the investment mix of the Balanced no changes made to the Capital Diversified Income Account during Account during the fourth quarter. Appreciation Account. Up 4.6 percent the fourth quarter of 1995. For that For the quarter ended December 31, for the quarter ended December 31, period, the Account rose by 4.3%, 1995, the Account rose by 4.2 1995, the portfolio slightly lagged well above its benchmark, the Lehman percent in line with its benchmark, its benchmark index, the Wilshire Intermediate Government/Corporate the Lipper Balanced Fund index, up 5000, which rose 4.9 percent, but Bond Index at 3.5%. 4.2% was considerably ahead of its Once again, the greatest contributor Providing the most outstanding Micropal Peer Group Universe at 2.7 to performance during the quarter contribution to fourth quarter percent. This performance compared was the GROWTH & INCOME Account. account performance was the more with the Lipper category average of Representing a 15% weighting in the defensively oriented GROWTH & INCOME 3.8 percent for the same period. portfolio, this conservative equity Account with a gain of 7.2%. Up just over 7 percent during the account responded very positively Also providing very attractive quarter, the GROWTH & INCOME during the quarter. With the gain of results was the VALUE/GROWTH Account, with its 15% allocation, 6.5%, the Account far exceeded the Account, up 6.8% for the quarter, provided the greatest contribution 3.5% return of the benchmark. well exceeding the returns for this to the LifeSpan Account during the Another notable contribution came LifeSpan's benchmark. 4th quarter. from the GOVERNMENT/CORPORATE bond The 15% allocation to the Equally outstanding was the 6.8% Account, with a gain of 4.6% for the GOVERNMENT/ CORPORATE Account at gain from the VALUE/GROWTH Account, quarter. This component represents 4.7% was modestly ahead of the 4.2% as its strategy of buying stocks the highest weighting in the account return of the LifeSpan's overall with low p/e's and positive earnings at 35%. benchmark index, though the HIGH surprises continued to add value. Also benefiting from the decline in YIELD and SHORT TERM bond Accounts The SMALL CAP Equity Account interest rates was the shorter lagged somewhat, with returns of provided an attractive return of 5% maturities of the SHORT TERM bond 3.7% and 2.8% respectively. during the quarter. component. Continued Fed easing The International Equity Account The INTERNATIONAL EQUITY Account, during the latter part of the year added only slightly to results with its underweighted exposure to contributed to higher bond prices in during the fourth quarter. Looking Japan, provided only modestly to all sectors of the account. This ahead, however, we expect overall account performance. account maintained its allocation of international stocks to appear in- With a 15% exposure to the broad 25%, and gained close to 3% for the creasingly attractive. fixed income asset class, this quarter. FISCAL LIFESPAN LIPPER conservative element of the account The HIGH YIELD bond segment also PERIOD BALANCED BALANCED provided attractive results. At 4.6% added positively to performance ENDED FUND INDEX and 3.2% respectively, the results for the quarter with a ------- -------- ------ GOVERNMENT/CORPORATE and the HIGH return of 3.9%. 5/1/95 10,000 10,000 YIELD bond Accounts benefited from a LEHMAN 5/31/95 9,652 10,323 falling interest rate environment. FISCAL LIFESPAN INTERMEDIATE 6/30/95 9,853 10,509 MICROPAL DIVERSIFIED EQUITY FUNDS IS PERIOD DIV. INCOME GV'T/CORP. 7/31/95 10,235 10,732 THE PEER GROUP TO CMIA LIFESPAN - ------ ----------- ------------ 8/31/95 10,244 10,814 CAPITAL APPRECIATION. THE FUNDS 5/1/95 10,000 10,000 9/30/95 10,512 11,075 INVEST IN PRIMARILY A VARIETY OF 5/31/95 9,785 10,302 10/31/95 10,493 11,048 EQUITY STYLES AND MARKET SEGMENTS. 6/30/95 9,810 10,371 11/30/95 10,741 11,387 AMONG THE MARKET SEGMENTS COVERED 7/31/95 9,889 10,372 12/31/95 10,956 11,545 ARE CONVERTIBLE SECURITIES, 8/31/95 9,957 10,466 Comparative performance of $10,000 INTERNATIONAL EQUITIES AND DOMESTIC 9/30/95 10,134 10,542 invested in the CMIA Balanced EQUITIES WITHIN THE SMALL, MEDIUM 10/31/95 10,206 10,659 Account to the Lipper Balanced Fund AND LARGE CAPITALIZATION RANGES. 11/30/95 10,398 10,798 Index. The Lipper Balanced Fund FISCAL LIFESPAN WILSHIRE 12/31/95 10,567 10,912 Index is a net asset value weighted PERIOD CA. APP. 5000 Comparative performance of $10,000 index of the 30 largest funds within ENDED FUND INDEX invested in the CMIA LifeSpan the Balanced Fund investment ------ -------- -------- Diversified Income Account and the objective. It is calculated daily 5/1/95 10,000 10,000 Lehman Brothers Intermediate with adjustments for income 5/31/95 9,633 10,339 Government/Corporate Bond Index. The dividends and capital gains 6/30/95 9,901 10,669 Lehman Brothers Intermediate distributions as of the ex-dividend 7/31/95 10,388 11,107 Government/Corporate Bond Index dates. 8/31/95 10,379 11,216 includes fixed rate debt issues Past performance is not indicative 9/30/95 10,722 11,643 rated investment grade or higher by of future performance. 10/31/95 10,656 11,527 Moody's, S&P, or Fitch, in that LIPPER RANKINGS DO NOT TAKE INTO 11/30/95 10,952 12,016 order. All issues have at least one CONSIDERATION THE EFFECT OF SALES 12/31/95 11,213 12,212 year to maturity and an outstanding CHARGES AND HAD SALES CHARGES BEEN Comparative performance of $10,000 par value of at least $100 million INCLUDED, THE PERFORMANCE RANKINGS invested in the CMIA LifeSpan for US Government issues and $50 MAY HAVE BEEN LESS FAVORABLE. Capital Appreciation Account and the million for all others. All returns STANDARD RETURNS TAKE INTO Wilshire 5000 Index. The Wilshire are market value weighted inclusive CONSIDERATION ALL ONGOING MORTALITY 5000 Index is a market of accrued interest. The Lehman AND EXPENSE CHARGES, ANNUAL CONTRACT value-weighted index of all U.S. Brothers Intermediate CHARGES AND ASSUME THE CONTRACT IS common equity securities with Government/Corporate Bond Index in- SURRENDERED AT THE END OF THE CALCU- readily available price data. Over cludes only the government, LATION PERIOD AND INCURS A 5% 5,000 market value-weighted security corporate and Yankee issues with a SURRENDER CHARGE. returns are used to adjust the remaining term to maturity of 1 to THERE ARE SPECIAL RISKS ASSOCIATED index. The capital value of the 9.99 years. Total return includes WITH INTERNATIONAL INVESTING SUCH AS index is composed of approximately price appreciation/depreciation and POLITICAL CHANGES, CURRENCY 86% of New York Stock Exchange income as a percentage of the FLUCTUATION, FOREIGN TAXATION, DIF- issues; 3% of American Stock original investment. The total FERENCES IN AUDITING AND OTHER Exchange issues; and 11% of NASDAQ return is rebalanced monthly by FINANCIAL STANDARDS. over the counter issues. It is a market capitalization. BOND FUND SHARES ARE NOT GUARANTEED total return index with dividends Past performance is not indicative AND WILL FLUCTUATE WITH MARKET reinvested. of future performance. CONDITIONS AND INTEREST RATES AND Past performance is not indicative INCLUDE A GREATER RISK TO PRINCIPAL. of future performance. SHARES WHEN REDEEMED MAY BE WORTH FOR EACH ACCOUNT, THE INVESTMENT MORE OR LESS THAN THEIR ORIGINAL RETURN AND PRINCIPAL VALUE OF AN COST. INVESTMENT WILL FLUCTUATE SO THAT AN INVESTORS' SHARES, WHEN REDEEMED MAY BE WORTH MORE OR LESS THAN THE ORIGINAL INVESTMENT.
2 CONNECTICUT MUTUAL INVESTMENT ACCOUNTS, INC. F I N A N C I A L S T A T E M E N T S - ----------DECEMBER 31, 1995
LifeSpan Diversified Income Account LifeSpan Balanced Account LifeSpan Capital Appreciation Account PERFORMANCE -- TOTAL RETURN(1)
CMIA LIFESPAN PERFORMANCE AS OF 12/31/95 STANDARD ENDING NAV STANDARD CUMULATIVE NON-STANDARD TOTAL RETURN -- 2 ACCOUNTS 12/31/95 -- 2 CUMULATIVE -- 3 AS OF 9/30/95 MONTH INCEPTION MONTH INCEPTION MONTH INCEPTION DIVERSIFIED INCOME $10.70 -3.47% 5.66% 1.62% 11.22% -3.31% 1.34% BALANCED $11.05 -3.10% 9.56% 2.00% 15.33% -2.52% 5.12% CAPITAL APPRECIATION $11.39 -2.74% 12.12% 2.38% 18.02% -1.85% 7.22%
30 DAY SEC DIVIDEND CAPITAL ACCOUNTS YIELD -- 4 PAYMENTS GAINS DIVERSIFIED INCOME 4.46% 0.0579709 0.04356 BALANCED 2.57% 0.1879261 0.22601 CAPITAL APPRECIATION 1.39% 0.1189261 0.23266
PERFORMANCE DATE QUOTED REPRESENTS PAST PERFORMANCE AND IS NOT AN INDICATION OF FUTURE RETURNS. THE INVESTMENT RETURN AND PRINCIPAL VALUE OF AN INVESTMENT WILL FLUCTUATE SO THAT AN INVESTOR'S SHARES, WHEN REDEEMED, MAY BE WORTH MORE OR LESS THAN THE ORIGINAL INVESTMENT. 1. All returns are net of fund expenses and include reinvestment of all dividends and capital gains. 2. Standard returns assume the current initial sales charge reduces porfolio performance and was paid at the beginning of each period shown. The current maximum sales charge is 5% for all Accounts. 3. Non-standard returns assume the initial sales charge is paid in a prior period and is not reflected in this calculation. 4. Yield is a measure of net investment income per share expressed as a percentage of the maximum offering price. 1 SCHEDULE OF INVESTMENTS CONNECTICUT MUTUAL INVESTMENT ACCOUNTS, INC. December 31, 1995
LIFESPAN DIVERSIFIED INCOME ACCOUNT
NUMBER OF MARKET SHARES SECURITY VALUE COMMON STOCKS (21.8% OF NET ASSETS) AEROSPACE (1.5%) 2,800 General Dynamics Corp. $ 165,550 1,200 Lockheed Martin Corp. 94,800 2,000 Rockwell International Corp. 105,750 ------------ 366,100 ------------ BANKING (2.8%) 2,800 Bank of Boston Corp. 129,500 2,400 Bankers Trust New York Corp. 159,600 1,900 Chase Manhattan Corp. 115,187 1,700 Morgan (J.P.) & Company, Inc. 136,425 4,400 PNC Bank Corp. 141,900 ------------ 682,612 ------------ BUSINESS EQUIPMENT & SERVICES (.4%) 5,000 New England Business Service, Inc. 109,375 ------------ CHEMICALS (.9%) 1,700 Goodrich (B.F.) Co. 115,812 900 Monsanto Co. 110,250 ------------ 226,062 ------------ CONGLOMERATES (.5%) 7,400 Hanson PLC (ADR) 112,850 ------------ DRUGS & COSMETICS (1.2%) 1,400 American Home Products Corp. 135,800 1,800 Bristol-Myers Squibb Co. 154,575 ------------ 290,375 ------------ ELECTRIC UTILITIES (3.5%) 4,800 Entergy Corp. 140,400 3,400 FPL Group, Inc. 157,675 4,000 Illinova Corp. 120,000 5,000 Kansas City Power & Light Co. 130,625 800 Texas Utilities Co. 32,900 4,900 Unicom Corp. 160,475 3,900 Western Resources, Inc. 130,163 ------------ 872,238 ------------ HEALTH SERVICES & HOSPITAL SUPPLIES (.4%) 2,100 Baxter International Inc. 87,937 ------------ INSURANCE (2.0%) 2,300 Aetna Life & Casualty Co. 159,275 900 CIGNA Corp. 92,925 Hartford Steam Boiler Inspection & 2,800 Insurance Co. 140,000 2,000 St. Paul Companies Inc. 111,250 ------------ 503,450 ------------ IRON & STEEL (1.4%) 3,200 Carpenter Technology Corp. 131,600
NUMBER OF MARKET SHARES SECURITY VALUE 25,000 UNR Industries Inc. $ 215,625 ------------ 347,225 ------------ OIL & GAS (3.7%) 1,400 Amoco Corp. 100,625 2,400 Chevron Corp. 126,000 1,600 Exxon Corp. 128,200 1,200 Mobil Corp. 134,400 6,600 Panhandle Eastern Corp. 183,975 1,000 Royal Dutch Petroleum Co. 141,125 4,300 Ultramar Corp. 110,725 ------------ 925,050 ------------ REAL ESTATE (1.3%) 4,800 Camden Property Trust 114,600 6,800 Health & Retirement Property Trust 110,500 3,100 Meditrust Corp. 108,113 ------------ 333,213 ------------ RETAIL TRADE (.3%) 1,800 Sears, Roebuck & Co. 70,200 ------------ SAVINGS & LOAN (.3%) 2,900 Ahmanson (H.F.) & Co. 76,850 ------------ TELEPHONE UTILITIES (1.6%) 2,100 Ameritech Corp. 123,900 3,000 GTE Corp. 132,000 Intermedia Communications of 50 Florida 500 2,700 NYNEX Corp. 145,800 ------------ 402,200 ------------ TOTAL COMMON STOCKS (COST $4,633,928) 5,405,737 ------------ CONVERTIBLE PREFERRED STOCKS (.5% OF NET ASSETS) MACHINERY & EQUIPMENT (.5%) 1,200 Case Corp. (COST $115,000) 114,600 ------------ PRINCIPAL CORPORATE BONDS AMOUNT (28.1% OF NET ASSETS) AEROSPACE (.2%) British Aerospace Finance Inc. $ 60,000 8.00%, 1997 61,763 ------------ APPAREL & TEXTILES (.2%) U.S. Leather, Inc. 50,000 10.25%, 2003 42,250 ------------ AUTO & AUTO RELATED (.2%) Venture Holdings 50,000 9.75%, 2004 41,750 ------------ BANKING (4.1%) BankAmerica Corp. 300,000 6.00%, 1997 302,109 Barnett Banks, Inc. 60,000 8.50%, 1999 64,820
The accompanying notes are an integral part of these financial statements. 2 LIFESPAN DIVERSIFIED INCOME ACCOUNT (cont'd)
PRINCIPAL MARKET AMOUNT SECURITY VALUE Chemical Banking Corp. $ 55,000 6.625%, 1998 $ 56,061 Citicorp 55,000 9.46%, 1996 55,631 First Fidelity Bancorporation 55,000 8.50%, 1998 58,027 First Union Corp. 55,000 6.75%, 1998 56,033 First USA Bank of Delaware 150,000 5.35%, 1996 149,606 Mellon Financial Co. 55,000 6.50%, 1997 55,884 Security Pacific Corp. 55,000 7.75%, 1996 56,032 Shawmut National Corp. 150,000 8.875%, 1996 151,035 ------------ 1,005,238 ------------ CHEMICALS (2.4%) Building Materials Corp. of America 100,000 0.00%, 2004 69,000 Crain Industries, Inc. 50,000 13.50%, 2005 50,750 G-I Holdings 50,000 0.00%, 1998 38,750 Harris Chemical North America, Inc. 50,000 0.00%, 2001 47,500 IMC Global, Inc. 100,000 6.25%, 2001 126,000 LaRoche Industries, Inc. 75,000 13.00%, 2004 79,687 Lyondell Petrochemical Co. 105,000 8.25%, 1997 107,709 Sherritt, Inc. 75,000 10.50%, 2014 81,375 ------------ 600,771 ------------ CONGLOMERATES (.3%) Alpine Group, Inc. 75,000 12.25%, 2003 73,500 ------------ DRUGS & COSMETICS (1.4%) Revlon Consumer Products Corp. 50,000 9.375%, 2001 50,625 Revlon Worldwide Corp. 50,000 0.00%, 1998 37,125 Roche Holdings Inc. 300,000 2.75%, 2000 267,000 ------------ 354,750 ------------ FINANCIAL SERVICES (3.0%) American General Finance Corp. 60,000 8.50%, 1998 64,141 Associates Corp. of North America 60,000 7.40%, 1999 63,230 PRINCIPAL MARKET AMOUNT SECURITY VALUE Chrysler Financial Corp. $ 120,000 6.65%, 1997 $ 121,433 Countrywide Funding Corp. 60,000 6.57%, 1997 60,854 General Motors Acceptance Corp. 300,000 5.65%, 1997 300,405 Merrill Lynch & Co., Inc. 85,000 8.25%, 1996 86,546 Norwest Financial, Inc. 55,000 6.50%, 1997 55,893 ------------ 752,502 ------------ FOOD & BEVERAGES (.7%) Grand Metropolitan Investment Corp. 55,000 8.125%, 1996 55,779 Nabisco Brands Inc. 55,000 8.00%, 2000 58,459 Seagram Company Ltd. 60,000 9.75%, 2000 60,833 ------------ 175,071 ------------ HEALTH SERVICES & HOSPITAL SUPPLIES (.5%) Genesis Health Venture, Inc. 75,000 9.75%, 2005 79,500 Integrated Health Services, Inc. 50,000 9.625%, 2002 51,000 ------------ 130,500 ------------ IRON & STEEL (.6%) Geneva Steel Co. 25,000 9.50%, 2004 19,500 Republic Engineered Steels, Inc. 25,000 9.875%, 2001 22,500 WCI Steel, Inc. 50,000 10.50%, 2002 48,625 Wierton Steel Corp. 50,000 10.75%, 2005 47,125 ------------ 137,750 ------------ LEASING (.4%) GPA Delaware, Inc. 50,000 8.75%, 1998 47,000 Penske Truck Leasing Co. 55,000 7.75%, 1999 57,440 ------------ 104,440 ------------ LEISURE & ENTERTAINMENT (3.6%) Adelphia Communications Corp. 25,000 12.50%, 2002 24,500 Australis Media Ltd. 75,000 0.00%, 2003 54,187 Bally Park Place Funding 50,000 9.25%, 2004 50,875
3 LIFESPAN DIVERSIFIED INCOME ACCOUNT (cont'd)
PRINCIPAL MARKET AMOUNT SECURITY VALUE Bell Cablemedia PLC $ 75,000 0.00%, 2004 $ 52,875 Comcast Corp. 50,000 9.375%, 2005 52,875 Comcast UK Cable Partners Ltd. 75,000 0.00%, 2007 43,875 Greate Bay Property Funding 25,000 10.875%, 2004 21,937 GNF Corp. 50,000 10.625%, 2003 46,625 Helicon Group Ltd. 100,000 9.00%, 2003 96,500 New World Communications Corp. 75,000 0.00%, 1999 51,750 Rio Hotel & Casino, Inc. 100,000 10.625%, 2005 101,594 Santa Fe Hotel 45,000 11.00%, 2000 28,350 Selmer Company, Inc. 50,000 11.00%, 2005 49,250 Sinclair Broadcast Group, Inc. 50,000 10.00%, 2005 51,000 Trump Plaza Funding 50,000 10.875%, 2001 51,750 Trump Taj Mahal 50,000 0.00%, 1999 48,250 United International Holdings, Inc. 100,000 0.00%, 1999 58,750 ------------ 884,943 ------------ MACHINERY & EQUIPMENT (.2%) Specialty Equipment Companies, Inc. 50,000 11.375%, 2003 50,750 ------------ MANUFACTURING (1.5%) American Standard, Inc. 50,000 0.00%, 2005 42,875 Day International Group, Inc. 50,000 11.125%, 2005 51,125 Huntsman Corp. 75,000 10.625%, 2001 83,700 Interlake Corp. 50,000 12.125%, 2002 47,500 International Wire Group, Inc. 50,000 11.75%, 2005 47,750 Jordan Industries, Inc. 25,000 10.375%, 2003 22,250 Plantronics, Inc. 75,000 10.00%, 2001 79,219 ------------ 374,419 ------------ OIL & GAS (.6%) Coastal Corp. 55,000 8.75%, 1999 59,346 PRINCIPAL MARKET AMOUNT SECURITY VALUE Maxus Energy Corp. $ 50,000 9.875%, 2002 $ 50,250 Mesa Capital CP 50,000 12.75%, 1998 44,250 ------------ 153,846 ------------ PAPER & FOREST PRODUCTS (1.6%) Crown Packaging Holdings Ltd. 100,000 0.00%, 2003 44,500 Doman Industries Ltd. 50,000 8.75%, 2004 47,375 Gaylord Container Corp. 50,000 0.00%, 2005 49,250 Georgia-Pacific Corp. 60,000 9.85%, 1997 63,259 Indah Kiat Pulp & Paper Corp. 50,000 11.875%, 2002 50,500 Malette, Inc. 50,000 12.25%, 2004 56,000 Stone Container Corp. 100,000 9.875%, 2001 97,250 ------------ 408,134 ------------ PRINTING & PUBLISHING (.3%) Marvel III Holdings Inc. 25,000 9.125%, 1998 23,000 Reed Publishing USA Inc. 55,000 7.24%, 1997 56,013 ------------ 79,013 ------------ RETAIL TRADE (2.1%) Cole National Corp. 50,000 11.25%, 2001 50,125 Dairy Mart Convenience Stores, Inc. 50,000 10.25%, 2004 42,250 Duane Reade Corp. 50,000 12.00%, 2002 47,750 Farm Fresh, Inc. 50,000 12.25%, 2000 42,250 Hills Stores Co. 50,000 10.25%, 2003 43,500 Pathmark Stores, Inc. 100,000 0.00%, 2003 61,250 Ralph's Grocery Co. 50,000 11.00%, 2005 49,500 Sears, Roebuck & Co. 60,000 9.44%, 1996 60,506 60,000 8.39%, 1999 64,593
The accompanying notes are an integral part of these financial statements. 4 LIFESPAN DIVERSIFIED INCOME ACCOUNT (cont'd)
PRINCIPAL MARKET AMOUNT SECURITY VALUE Waban, Inc. $ 50,000 11.00%, 2004 $ 51,250 ------------ 512,974 ------------ SAVINGS & LOAN (.2%) Golden West Financial Corp. 55,000 8.625%, 1998 58,721 ------------ TECHNOLOGY (.7%) Monarch Acquisition 75,000 12.50%, 2003 79,500 Storage Technology Corp. 80,000 7.00%, 2008 89,200 ------------ 168,700 ------------ TELECOMMUNICATIONS (1.3%) Centennial Cellular Corp. 50,000 10.125%, 2005 52,625 Intermedia Communications of Florida, Inc. 50,000 13.50%, 2005 55,750 MFS Communications Company, Inc. 75,000 0.00%, 2004 60,562 Nextel Communications, Inc. 100,000 0.00%, 2004 54,250 Tele-Communications, Inc. 90,000 5.28%, 1996 89,641 ------------ 312,828 ------------ TELEPHONE UTILITIES (.7%) GTE Corp. 60,000 8.85%, 1998 63,969 MCI Communications Corp. 60,000 7.625, 1996 60,956 Peoples Telephone Company, Inc. 50,000 12.25%, 2002 40,000 ------------ 164,925 ------------ TOBACCO (.5%) B.A.T Capital Corp. 60,000 6.66%, 2000 61,386 Philip Morris Companies Inc. 60,000 8.75%, 1996 61,649 ------------ 123,035 ------------ TRANSPORTATION (.6%) Federal Express Corp. 150,000 6.25%, 1998 151,237 ------------ WHOLESALE TRADE (.2%) Falcon Holdings PLC 52,750 11.00%, 2003 50,113 ------------ TOTAL CORPORATE BONDS (COST $6,912,494) 6,973,923 ------------ PRINCIPAL MARKET AMOUNT SECURITY VALUE U.S. GOVERNMENT & AGENCY LONG-TERM OBLIGATIONS (41.5% OF NET ASSETS) U.S. Treasury Bond $1,320,000 8.125%, 2019 $ 1,659,689 U.S. Treasury Notes 1,265,000 7.375%, 1997 1,312,830 4,500,000 5.125%, 1998 4,492,026 275,000 6.75%, 1999 287,546 270,000 7.75%, 1999 292,993 2,020,000 7.25%, 2004 2,246,301 ------------ TOTAL U.S. GOVERNMENT & AGENCY LONG-TERM OBLIGATIONS (COST $9,708,762) 10,291,385 ------------ FOREIGN GOVERNMENT BONDS (1.2% OF NET ASSETS) Province of Ontario 300,000 8.25%, 1996 (COST $305,337) 301,986 ------------ REPURCHASE AGREEMENTS (5.4% OF NET ASSETS) State Street Bank & Trust Co. 4.75%, due 1/2/96 (COST 1,357,000 $1,357,000) 1,357,000 ------------ TOTAL INVESTMENTS (COST $23,032,521) $ 24,444,631 ------------ ------------
LIFESPAN BALANCED ACCOUNT NUMBER OF MARKET SHARES SECURITY VALUE COMMON STOCKS (41.9% OF NET ASSETS) AEROSPACE (2.1%) 4,300 General Dynamics Corp. $ 254,237 2,700 Lockheed Martin Corp. 213,300 4,000 Loral Corp. 141,500 1,300 McDonnell Douglas Corp. 119,600 3,200 Rockwell International Corp. 169,200 ------------ 897,837 ------------ AIRLINES (.5%) 800 AMR Corp. 59,400 700 Delta Air Lines, Inc. 51,713 1,700 Northwest Airlines Corp. 86,700 ------------ 197,813 ------------ APPAREL & TEXTILES (.8%) 2,400 Nautica Enterprises, Inc. 105,000 1,700 St. John Knits, Inc. 90,312
5 LIFESPAN BALANCED ACCOUNT (cont'd)
NUMBER OF MARKET SHARES SECURITY VALUE 3,300 Tommy Hilfiger Corp. $ 139,837 ------------ 335,149 ------------ AUTO & AUTO RELATED (.2%) 2,700 Discount Auto Parts, Inc. 84,037 ------------ BANKING (3.0%) 5,600 Bank of Boston Corp. 259,000 3,300 Bankers Trust New York Corp. 219,450 3,800 Chase Manhattan Corp. 230,375 3,400 Morgan (J.P.) & Company, Inc. 272,850 6,900 PNC Bank Corp. 222,525 300 Wells Fargo & Co. 64,800 ------------ 1,269,000 ------------ BUILDING MATERIALS & CONSTRUCTION (.1%) 2,200 USG Corp. 66,000 ------------ BUSINESS EQUIPMENT & SERVICES (.4%) 1,100 Medic Computer Systems, Inc. 66,550 5,100 New England Business Service, Inc. 111,562 ------------ 178,112 ------------ CHEMICALS (1.8%) 700 Cabot Corp. 37,712 900 FMC Corp. 60,862 2,700 Goodrich (B.F.) Co. 183,938 1,400 Grace (W.R.) & Co. 82,775 2,600 IMC Global, Inc. 106,275 1,600 Monsanto Co. 196,000 Potash Corporation of Saskatchewan 1,500 Inc. 106,312 ------------ 773,874 ------------ COMMERCIAL SERVICES (1.3%) 3,000 AccuStaff, Inc. 132,000 1,500 Alternative Resources Corp. 45,375 Cambridge Technology Partners, 2,000 Inc. 115,000 4,900 Corrections Corporation of America 181,913 2,200 Quintiles Transnational Corp. 90,200 ------------ 564,488 ------------ COMPUTER BUSINESS EQUIPMENT & SERVICES (3.6%) 3,100 Acxiom Corporation 84,862 1,700 ALANTEC Corp. 99,025 4,800 Cognex Corp. 166,800 2,700 Comverse Technology, Inc. 54,000 2,100 Davidson and Associates, Inc. 46,200 3,100 Epic Design Technology, Inc. 65,100 2,600 Global Village Communication 50,375 4,000 Hyperion Software Corp. 85,000 1,600 Inso Corp. 68,000 2,950 McAfee Associates, Inc. 129,431 NUMBER OF MARKET SHARES SECURITY VALUE 1,900 Microcom, Inc. $ 49,400 1,700 National Data Corp. 42,075 2,500 NetManage, Inc. 58,125 1,200 Optical Data Systems, Inc. 30,300 Project Software & Development, 2,400 Inc. 83,700 2,800 Rational Software Corp. 62,650 1,100 Remedy Corp. 65,175 1,000 Shiva Corp. 72,750 2,000 StorMedia, Inc. 73,000 3,400 Zebra Technologies Corp. 115,600 ------------ 1,501,568 ------------ CONGLOMERATES (.8%) 7,400 Hanson PLC (ADR) 112,850 43 Jardine Matheson Holdings Ltd. 295 1,700 Textron, Inc. 114,750 2,800 Tyco International Ltd. 99,750 ------------ 327,645 ------------ DRUGS & COSMETICS (.9%) 2,000 American Home Products Corp. 194,000 1,900 Bristol-Myers Squibb Co. 163,163 562 Watson Pharmaceuticals, Inc. 27,538 ------------ 384,701 ------------ ELECTRIC UTILITIES (3.0%) 8,400 Entergy Corp. 245,700 5,300 FPL Group, Inc. 245,787 5,800 Illinova Corp. 174,000 5,000 Kansas City Power & Light Co. 130,625 1,600 Texas Utilities Co. 65,800 8,300 Unicom Corp. 271,825 3,900 Western Resources, Inc. 130,162 ------------ 1,263,899 ------------ ELECTRICAL & ELECTRONIC EQUIPMENT (1.7%) 4,200 Actel Corp. 45,150 2,400 Allen Group, Inc. 53,700 2,200 Burr-Brown Corp. 56,100 1,300 Cable Design Technologies 57,200 1,400 Cidco, Inc. 35,700 2,050 Credence Systems Corp. 46,894 2,950 GaSonics International 39,825 1,400 Input/Output, Inc. 80,850 3,500 Kemet Corp. 83,563 3,900 S3, Inc. 68,738 1,700 Sanmina Corp. 88,188 2,600 Ultratech Stepper, Inc. 66,950 ------------ 722,858 ------------ ENVIRONMENTAL CONTROL (.5%) 3,500 Tetra Tech, Inc. 79,625
The accompanying notes are an integral part of these financial statements. 6 LIFESPAN BALANCED ACCOUNT (cont'd)
NUMBER OF MARKET SHARES SECURITY VALUE 3,300 United Waste Systems, Inc. $ 122,925 ------------ 202,550 ------------ FINANCIAL SERVICES (.1%) 3,600 Amresco, Inc. 45,900 ------------ FOOD & BEVERAGES (.1%) 1,600 Dole Food Company, Inc. 56,000 ------------ HEALTH SERVICES & HOSPITAL SUPPLIES (2.6%) 3,400 Baxter International Inc. 142,375 1,800 Columbia Healthcare Corp. 91,350 1,200 Express Scripts, Inc. 61,200 2,900 Gulf South Medical Supply, Inc. 87,725 2,400 Idexx Laboratories, Inc. 112,800 1,900 MedPartners, Inc. 62,700 2,600 Omnicare, Inc. 116,350 3,100 OrNda Healthcorp 72,075 2,200 PhyCor, Inc. 111,237 2,000 Physician Reliance Network, Inc. 79,500 5,600 Physician Sales & Service, Inc. 159,600 ------------ 1,096,912 ------------ INSURANCE (2.8%) 3,600 Aetna Life & Casualty Co. 249,300 2,639 Allstate Corp. 108,529 1,800 CIGNA Corp. 185,850 1,900 Compdent Corp. 78,850 Hartford Steam Boiler Inspection & 2,700 Insurance Co. 135,000 900 Healthsource, Inc. 32,400 3,200 St. Paul Companies Inc. 178,000 2,300 TIG Holdings, Inc. 65,550 2,100 Travelers Group 132,037 ------------ 1,165,516 ------------ IRON & STEEL (.8%) 3,200 Carpenter Technology Corp. 131,600 25,000 UNR Industries Inc. 215,625 ------------ 347,225 ------------ LEASING (.1%) 2,300 Oxford Resources Corp. 51,750 ------------ LEISURE & ENTERTAINMENT (.6%) 2,400 Clear Channel Communications, Inc. 105,900 1,900 Mattel, Inc. 58,425 3,600 Regal Cinemas, Inc. 107,100 ------------ 271,425 ------------ LODGING & RESTAURANTS (.3%) 2,800 Boston Chicken, Inc. 89,950 1,200 Papa John's International, Inc. 49,425 ------------ 139,375 ------------ MACHINERY & EQUIPMENT (.8%) 2,300 Case Corp. 105,225 NUMBER OF MARKET SHARES SECURITY VALUE 3,800 Electroglas, Inc. $ 93,100 800 Harnischfeger Industries, Inc. 26,600 2,200 Mark IV Industries, Inc. 43,450 1,800 Parker-Hannifin Corp. 61,650 ------------ 330,025 ------------ MANUFACTURING (1.0%) 2,100 AGCO Corp. 107,100 1,700 Black & Decker Corp. 59,925 3,000 Blyth Industries, Inc. 88,500 2,900 FSI International, Inc. 58,725 1,700 Helix Technology Corp. 67,150 1,700 Integrated Process Equipment Corp. 39,950 ------------ 421,350 ------------ MISCELLANEOUS (.3%) 2,100 Premark International, Inc. 106,312 ------------ OFFICE EQUIPMENT (.4%) 2,900 US Office Products Co. 65,975 700 Xerox Corp. 95,900 ------------ 161,875 ------------ OIL & GAS (3.5%) 2,200 Amoco Corp. 158,125 4,400 Chevron Corp. 231,000 1,600 Exxon Corp. 128,200 2,100 Mobil Corp. 235,200 10,900 Panhandle Eastern Corp. 303,837 2,000 Repsol SA (ADR) 65,750 1,500 Royal Dutch Petroleum Co. 211,687 4,300 Ultramar Corp. 110,725 1,500 YPF Sociedad Anonima (ADR) 32,438 ------------ 1,476,962 ------------ PAPER & FOREST PRODUCTS (.2%) 1,248 Kimberly-Clark Corp. 103,272 ------------ PRINTING & PUBLISHING (.2%) 2,100 Gartner Group, Inc. 100,538 ------------ REAL ESTATE (.8%) 4,800 Camden Property Trust 114,600 533 Castle & Cooke Inc. 8,933 6,800 Health & Retirement Property Trust 110,500 3,100 Meditrust Corp. 108,112 ------------ 342,145 ------------ RETAIL TRADE (1.7%) 1,600 CDW Computer Centers, Inc. 64,800 2,500 Corporate Express, Inc. 75,312 1,700 Eckerd Corp. 75,862 1,200 General Nutrition Companies, Inc. 27,600 2,800 Kroger Co. 105,000 1,300 MSC Industrial Direct Co., Inc. 35,750 4,700 Sears, Roebuck & Co. 183,300 2,600 Service Merchandise Co., Inc. 13,000 3,000 Sunglass Hut International, Inc. 71,250
7 LIFESPAN BALANCED ACCOUNT (cont'd)
NUMBER OF MARKET SHARES SECURITY VALUE 2,500 Waban Inc. $ 46,875 ------------ 698,749 ------------ SAVINGS & LOAN (.3%) 5,000 Ahmanson (H.F.) & Co. 132,500 ------------ TECHNOLOGY (1.3%) 1,700 Compaq Computer Corp. 81,600 1,400 Conner Peripherals, Inc. 29,400 3,200 Electronics for Imaging, Inc. 140,000 1,400 Seagate Technology, Inc. 66,500 2,400 Storage Technology Corp. 57,300 2,500 Stratus Computer, Inc. 86,562 1,800 Sun Microsystems, Inc. 82,125 ------------ 543,487 ------------ TELECOMMUNICATIONS (.9%) 2,800 Aspect Telecommunications Corp. 93,800 Coherent Communications System 2,900 Corp. 55,825 2,000 DSP Communications, Inc. 87,250 3,520 Ericsson LM Tel. Co. (ADR) 68,640 2,800 LCI International, Inc. 57,400 ------------ 362,915 ------------ TELEPHONE UTILITIES (1.9%) 4,100 Ameritech Corp. 241,900 5,600 GTE Corp. 246,400 Intermedia Communications of 100 Florida, Inc. 1,000 4,700 NYNEX Corp. 253,800 2,900 VTEL Corp. 53,650 ------------ 796,750 ------------ TRANSPORTATION (.5%) 3,600 Atlas Air, Inc. 60,300 2,400 Fritz Companies, Inc. 99,600 1,000 Wisconsin Central Transportation 65,750 ------------ 225,650 ------------ TOTAL COMMON STOCKS (COST $14,966,836) 17,746,164 ------------ FOREIGN COMMON STOCKS (11.9% OF NET ASSETS) AUTO & AUTO RELATED (.4%) 1,000 Autoliv AB (Sweden) 58,436 2,000 Bridgestone Corp. (Japan) 31,768 1,000 Michelin CGDE (France) 39,882 3,000 Shinmaywa Industries Ltd. (Japan) 24,755 706 Valeo SA (France) 32,698 ------------ 187,539 ------------ BANKING (.9%) 400 Banco Popular Espanol (Spain) 73,768 1,500 Banco Santander SA (Spain) 75,309 NUMBER OF MARKET SHARES SECURITY VALUE Bangkok Bank Company Ltd. 4,000 (Thailand) $ 48,591 1,000 Deutsche Bank AG (Germany) 47,382 2,000 HSBC Holdings PLC (Hong Kong) 30,262 6,000 Malayan Banking Berhad (Malaysia) 50,557 200 Societe Generale Paris (France) 24,709 4,500 Thai Farmers Bank Ltd. (Thailand) 45,375 ------------ 395,953 ------------ BUILDING MATERIALS & CONSTRUCTION (.2%) Autopistas Concesionaria Espanola 4,000 SA (Spain) 45,507 250 Compagnie de Saint-Gobain (France) 27,262 PT Indocement Tunggal Prakar 7,000 (Indonesia) 27,553 ------------ 100,322 ------------ CHEMICALS (.2%) 200 Akzo Nobel (Netherlands) 23,132 4,000 Sekisui Chemical Co. (Japan) 58,886 ------------ 82,018 ------------ COMPUTER BUSINESS EQUIPMENT & SERVICES (.3%) 9,000 Fujitsu Ltd. (Japan) 100,242 600 Getronics NV (Netherlands) 28,043 ------------ 128,285 ------------ CONGLOMERATES (.7%) 2,007 Canadian Pacific Ltd. (Canada) 36,553 46,000 First Pacific Co. (Hong Kong) 51,161 10,000 Hutchison Whampoa Ltd. (Hong Kong) 60,912 195 Mannesmann AG (Germany) 62,082 22,000 Renong Berhad (Malaysia) 32,571 120 Viag AG (Germany) 48,100 ------------ 291,379 ------------ DRUGS & COSMETICS (1.5%) 1,800 Astra AB (Sweden) 71,841 100 Ciba-Geigy AG (Switzerland) 87,993 6,000 PT Kalbe Farma (Indonesia) 20,337 100 Sandoz AG (Switzerland) 91,547 1,000 Schering AG (Germany) 66,246 SmithKline Beecham (United 8,094 Kingdom) 89,249 SmithKline Bch/Bec Units (United 5,052 Kingdom) 55,078 4,000 Takeda Chemical Industries (Japan) 65,860 4,000 Zeneca Group PLC (United Kingdom) 77,372 ------------ 625,523 ------------ ELECTRIC UTILITIES (.3%) 3,407 Powergen PLC (United Kingdom) 28,149
The accompanying notes are an integral part of these financial statements. 8 LIFESPAN BALANCED ACCOUNT (cont'd)
NUMBER OF MARKET SHARES SECURITY VALUE 2,000 VEBA AG (Germany) $ 84,908 ------------ 113,057 ------------ ELECTRICAL & ELECTRONIC EQUIPMENT (1.2%) BBC AG Brown Boveri & Cie. 65 (Switzerland) 75,509 6,000 Hitachi Ltd. (Japan) 60,436 600 Keyence Corp. (Japan) 69,153 1,000 Kyocera Corp. (Japan) 74,286 Matsushita Electric Industrial 4,000 Co., Ltd. (Japan) 65,085 3,000 Matsushita Electric Works (Japan) 31,671 Philips Electronics NV 2,000 (Netherlands) 72,288 10,000 Toshiba Corp. (Japan) 78,354 ------------ 526,782 ------------ FINANCIAL SERVICES (.4%) 220 Compagnie Bancaire SA (France) 24,619 International Nederlanden Groep NV 1,021 (Netherlands) 68,207 4,000 Itochu Corporation (Japan) 26,925 1,000 Nichiei Co., Ltd. (Japan) 74,576 ------------ 194,327 ------------ FOOD & BEVERAGES (.5%) 7,000 Guinness PLC (United Kingdom) 51,475 550 Heineken NV (Netherlands) 90,141 50 Nestle SA (Switzerland) 55,310 ------------ 196,926 ------------ INSURANCE (.8%) 2,000 AEGON NV (Netherlands) 88,490 1,500 AXA (France) 101,082 25 Munich Reinsurance (Germany) 54,374 1,300 Skandia Foersaekrings AB (Sweden) 35,145 Union des Assurances Federales SA 400 (France) 47,784 ------------ 326,875 ------------ IRON & STEEL (.6%) 400 Acerinox SA (Spain) 40,462 2,000 Hitachi Metals Ltd. (Japan) 24,988 6,000 Kawasaki Steel (Japan) 20,920 12,000 Nisshin Steel Co., Ltd. (Japan) 48,465 2,425 Outokumpu Oy (Finland) 38,471 Rio Tinto-Zinc Corp. PLC (United 4,000 Kingdom) 58,146 7,000 Sumitomo Metal Industries (Japan) 21,220 ------------ 252,672 ------------ LEISURE & ENTERTAINMENT (.2%) Carlton Communications PLC (United 3,300 Kingdom) 49,482 Television Broadcasts Ltd. (Hong 8,000 Kong) 28,503 NUMBER OF MARKET SHARES SECURITY VALUE 1,200 Thorn EMI PLC (United Kingdom) $ 28,262 ------------ 106,247 ------------ MACHINERY & EQUIPMENT (.4%) 800 Mabuchi Motor Co. (Japan) 49,743 Mitsubishi Heavy Industries Ltd. 7,000 (Japan) 55,797 3,000 NSK Limited (Japan) 21,792 500 SMC Corp. (Japan) 36,174 1,000 THK Company Ltd. (Japan) 28,475 ------------ 191,981 ------------ MANUFACTURING (.1%) Nippon Electric Glass Co., Ltd. 1,000 (Japan) 18,983 ------------ METALS & MINING (.1%) Broken Hill Proprietary Co., Ltd. 86 (Australia) 1,215 7,400 Poseidon Gold Ltd. (Australia) 14,741 Western Mining Corp. Holdings Ltd. 2,000 (Australia) 12,844 ------------ 28,800 ------------ MISCELLANEOUS (.2%) SGS Societe Generale de Surveillance Holdings SA 30 (Switzerland) 59,558 50 Siemens AG (Germany) 27,361 ------------ 86,919 ------------ OFFICE EQUIPMENT (.3%) 5,000 Canon Inc. (Japan) 90,557 5,000 Ricoh Corp., Ltd. (Japan) 54,722 ------------ 145,279 ------------ OIL & GAS (1.0%) 23,000 Ampolex Ltd. (Australia) 50,260 5,000 British Gas Corp. (United Kingdom) 19,724 British Petroleum Co., Ltd. 6,064 (United Kingdom) 50,620 Compagnie Francaise de Petroleum 1,641 Total (France) 110,752 Hong Kong & China Gas Company Ltd. 13,000 (Hong Kong) 20,931 1,100 Imperial Oil Ltd. (Canada) 39,573 7,393 Lasmo PLC (United Kingdom) 19,978 4,000 Saga Petroleum (Norway) 53,362 Societe Nationale Elf Aquitaine 554 (France) 40,817 ------------ 406,017 ------------ PAPER & FOREST PRODUCTS (.1%) 800 Mo och Domsjo AB (Sweden) 34,098 ------------ PRINTING & PUBLISHING (.2%) 1,526 De la Rue PLC (United Kingdom) 15,428 2,200 Elsevier NV (Netherlands) 29,339
9 LIFESPAN BALANCED ACCOUNT (cont'd)
NUMBER OF MARKET SHARES SECURITY VALUE 400 Wolters-Kluwer NV (Netherlands) $ 37,839 ------------ 82,606 ------------ RETAIL TRADE (.7%) 140 Adidas AG (Germany) 7,407 4,000 Argyll Group PLC (United Kingdom) 21,121 90 Carrefour Supermarche SA (France) 54,603 1,000 Ito-Yokado Ltd. (Japan) 61,598 1,000 JUSCO Co. (Japan) 26,053 LVMH Louis Vuitton Moet-Hennessy 270 (France) 56,239 8,000 Next PLC (United Kingdom) 56,655 ------------ 283,676 ------------ TELECOMMUNICATIONS (.3%) 1,200 Nokia AB (Finland) 47,179 19,000 Telecom Italia S.p.A (Italy) 29,551 Telecom Italia Mobile S.p.A 19,000 (Italy) 33,439 ------------ 110,169 ------------ TELEPHONE UTILITIES (.2%) 8 DDI Corporation (Japan) 61,985 2,000 Telefonica de Espana (Spain) 27,700 ------------ 89,685 ------------ TOBACCO (.1%) 4,000 PT HM Sampoerna (Indonesia) 41,636 ------------ TOTAL FOREIGN COMMON STOCKS (COST $4,776,323) 5,047,754 ------------ CONVERTIBLE PREFERRED STOCKS (.3% OF NET ASSETS) MACHINERY & EQUIPMENT (.3%) 1,200 Case Corp. (COST $114,800) 114,600 ------------ FOREIGN PREFERRED STOCKS (.7% OF NET ASSETS) AUTO & AUTO RELATED (.1%) 13,500 Fiat S.p.A. (Italy) 24,652 ------------ COMPUTER BUSINESS EQUIPMENT & SERVICES (.1%) 400 SAP AG (Germany) 60,509 ------------ CONGLOMERATES (.1%) 185 RWE AG (Germany) 51,586 ------------ ELECTRIC UTILITIES (.2%) 3,125,000 CEMIG (Brazil) 69,123 ------------ FINANCIAL SERVICES (.1%) 6,140,292 Banco Bradesco SA (Brazil) 52,700 ------------ TELECOMMUNICATIONS (.1%) Telecomunicacoes de Sao Paulo SA 350,000 (Brazil) 51,492 ------------ TOTAL FOREIGN PREFERRED STOCKS (COST $290,278) 310,062 ------------ PRINCIPAL MARKET AMOUNT SECURITY VALUE CORPORATE BONDS (20.0% OF NET ASSETS) AEROSPACE (.1%) British Aerospace Finance Inc. $ 45,000 8.00%, 1997 $ 46,322 ------------ APPAREL & TEXTILES (.2%) U.S. Leather, Inc. 100,000 10.25%, 2003 84,500 ------------ AUTO & AUTO RELATED (.2%) Venture Holdings 100,000 9.75%, 2004 83,500 ------------ BANKING (1.6%) BankAmerica Corp. 200,000 6.00%, 1997 201,406 Barnett Banks, Inc. 40,000 8.50%, 1999 43,213 Chemical Banking Corp. 35,000 6.625%, 1998 35,675 Citicorp 35,000 9.46%, 1996 35,402 First Fidelity Bancorporation 35,000 8.50%, 1998 36,926 First Union Corp. 35,000 6.75%, 1998 35,657 First USA Bank of Delaware 100,000 5.35%, 1996 99,737 Mellon Financial Co. 35,000 6.50%, 1997 35,562 Security Pacific Corp. 35,000 7.75%, 1996 35,657 Shawmut National Corp. 100,000 8.875%, 1996 100,690 ------------ 659,925 ------------ CHEMICALS (1.6%) Crain Industries, Inc. 75,000 13.50%, 2005 76,125 G-I Holdings 175,000 0.00%, 1998 135,625 Harris Chemical North America, Inc. 100,000 0.00%, 2001 95,000 IMC Global, Inc. 90,000 6.25%, 2001 113,400 LaRoche Industries, Inc. 100,000 13.00%, 2004 106,250 Lyondell Petrochemical Co. 75,000 8.25%, 1997 76,935
The accompanying notes are an integral part of these financial statements. 10 LIFESPAN BALANCED ACCOUNT (cont'd)
PRINCIPAL MARKET AMOUNT SECURITY VALUE NL Industries, Inc. $ 100,000 0.00%, 2005 $ 76,750 ------------ 680,085 ------------ CONGLOMERATES (.2%) Alpine Group, Inc. 75,000 12.25%, 2003 73,500 ------------ DRUGS & COSMETICS (.8%) Revlon Consumer Products Corp. 100,000 9.375%, 2001 101,250 Revlon Worldwide Corp. 50,000 0.00%, 1998 37,125 Roche Holdings Inc. 200,000 2.75%, 2000 178,000 ------------ 316,375 ------------ FINANCIAL SERVICES (1.2%) American General Finance Corp. 45,000 8.50%, 1998 48,106 Associates Corp. of North America 45,000 7.40%, 1999 47,422 Chrysler Financial Corp. 80,000 6.65%, 1997 80,955 Countrywide Funding Corp. 45,000 6.57%, 1997 45,640 General Motors Acceptance Corp. 200,000 5.65%, 1997 200,270 Merrill Lynch & Co., Inc. 55,000 8.25%, 1996 56,000 Norwest Financial, Inc. 35,000 6.50%, 1997 35,568 ------------ 513,961 ------------ FOOD & BEVERAGES (.3%) Grand Metropolitan Investment Corp. 35,000 8.125%, 1996 35,496 Nabisco Brands Inc. 35,000 8.00%, 2000 37,201 Seagram Company Ltd. 45,000 9.75%, 2000 45,625 ------------ 118,322 ------------ HEALTH SERVICES & HOSPITAL SUPPLIES (.2%) Integrated Health Services, Inc. 100,000 9.625%, 2002 102,000 ------------ IRON & STEEL (.7%) Geneva Steel Co. 50,000 9.50%, 2004 39,000 Republic Engineered Steels, Inc. 50,000 9.875%, 2001 45,000 PRINCIPAL MARKET AMOUNT SECURITY VALUE WCI Steel, Inc. $ 100,000 10.50%, 2002 $ 97,250 Wierton Steel Corp. 100,000 10.75%, 2005 94,250 ------------ 275,500 ------------ LEASING (.4%) GPA Delaware, Inc. 125,000 8.75%, 1998 117,500 Penske Truck Leasing Co. 35,000 7.75%, 1999 36,553 ------------ 154,053 ------------ LEISURE & ENTERTAINMENT (4.1%) Adelphia Communications Corp. 50,000 12.50%, 2002 49,000 Australis Media Ltd. 150,000 0.00%, 2003 108,375 Ballys Park Place Funding 100,000 9.25%, 2004 101,750 Bell Cablemedia PLC 150,000 0.00%, 2004 105,750 Casino America, Inc. 75,000 11.50%, 2001 69,375 Comcast Corp. 100,000 9.375%, 2005 105,750 Comcast UK Cable Partners Ltd. 125,000 0.00%, 2007 73,125 Continental Cablevision, Inc. 100,000 9.50%, 2013 107,500 Greate Bay Property Funding 50,000 10.875%, 2004 43,875 GNF Corp. 100,000 10.625%, 2003 93,250 Helicon Group Ltd. 50,000 9.00%, 2003 48,250 New World Communications Corp. 200,000 0.00%, 1999 138,000 Rio Hotel & Casino, Inc. 100,000 10.625%, 2005 101,594 Santa Fe Hotel 91,000 11.00%, 2000 57,330 Selmer Company, Inc. 100,000 11.00%, 2005 98,500 Sinclair Broadcast Group, Inc. 100,000 10.00%, 2005 102,000 Trump Plaza Funding 100,000 10.875%, 2001 103,500 Trump Taj Mahal 125,000 0.00%, 1999 120,625
11 LIFESPAN BALANCED ACCOUNT (cont'd)
PRINCIPAL MARKET AMOUNT SECURITY VALUE United International Holdings, Inc. $ 150,000 0.00%, 1999 $ 89,750 ------------ 1,717,299 ------------ MACHINERY & EQUIPMENT (.2%) Specialty Equipment Companies, Inc. 100,000 11.375%, 2003 101,500 ------------ MANUFACTURING (1.5%) American Standard, Inc. 100,000 0.00%, 2005 85,750 Day International Group, Inc. 100,000 11.125%, 2005 102,250 Figgie International, Inc. 100,000 9.875%, 1999 100,000 Huntsman Corp. 100,000 10.625%, 2001 111,600 Interlake Corp. 100,000 12.125%, 2002 95,000 International Wire Group, Inc. 100,000 11.75%, 2005 95,500 Jordan Industries, Inc. 50,000 10.375%, 2003 44,500 ------------ 634,600 ------------ OIL & GAS (.5%) Coastal Corp. 35,000 8.75%, 1999 37,766 Maxus Energy Corp. 100,000 9.875%, 2002 100,500 Mesa Capital CP 100,000 0.00%, 1998 88,500 ------------ 226,766 ------------ PAPER & FOREST PRODUCTS (1.6%) Crown Packaging Holdings Ltd. 200,000 0.00%, 2003 89,000 Doman Industries Ltd. 100,000 8.75%, 2004 94,750 Fort Howard Corp. 75,000 9.00%, 2006 73,500 Gaylord Container Corp. 100,000 0.00%, 2005 98,500 Georgia-Pacific Corp. 45,000 9.85%, 1997 47,444 Indah Kiat Pulp & Paper Corp. 100,000 11.875%, 2002 101,000 Malette, Inc. 100,000 12.25%, 2004 112,000 Stone Container Corp. 50,000 9.875%, 2001 48,625 ------------ 664,819 ------------ PRINTING & PUBLISHING (.2%) Marvel III Holdings Inc. 50,000 9.125%, 1998 46,000 PRINCIPAL MARKET AMOUNT SECURITY VALUE Reed Publishing USA Inc. $ 35,000 7.24%, 1997 $ 35,645 ------------ 81,645 ------------ RETAIL TRADE (1.9%) Cole National Corp. 50,000 11.25%, 2001 50,125 Dairy Mart Convenience Stores, Inc. 100,000 10.25%, 2004 84,500 Duane Reade Corp. 100,000 12.00%, 2002 95,500 Farm Fresh, Inc. 100,000 12.25%, 2000 84,500 Hills Stores Co. 100,000 10.25%, 2003 87,000 Pathmark Stores, Inc. 200,000 0.00%, 2003 122,500 Ralph's Grocery Co. 100,000 11.00%, 2005 99,000 Sears, Roebuck & Co. 45,000 9.44%, 1996 45,380 45,000 8.39%, 1999 48,445 Waban, Inc. 100,000 11.00%, 2004 102,500 ------------ 819,450 ------------ SAVINGS & LOAN (.1%) Golden West Financial Corp. 35,000 8.625%, 1998 37,368 ------------ TECHNOLOGY (.3%) Monarch Acquisition 50,000 12.50%, 2003 53,000 Storage Technology Corp. 75,000 7.00%, 2008 83,625 ------------ 136,625 ------------ TELECOMMUNICATIONS (1.5%) Centennial Cellular Corp. 100,000 10.125%, 2005 105,250 Intermedia Communications of Florida, Inc. 100,000 13.50%, 2005 111,500 MFS Communications Company, Inc. 150,000 0.00%, 2004 121,125 Nextel Communications, Inc. 200,000 0.00%, 2004 108,500 Paging Network Inc. 100,000 10.125%, 2007 108,250 Tele-Communications, Inc. 70,000 5.28%, 1996 69,721 ------------ 624,346 ------------ TELEPHONE UTILITIES (.2%) GTE Corp. 45,000 8.85%, 1998 47,977
The accompanying notes are an integral part of these financial statements. 12 LIFESPAN BALANCED ACCOUNT (cont'd)
PRINCIPAL MARKET AMOUNT SECURITY VALUE MCI Communications Corp. $ 45,000 7.625, 1996 $ 45,717 ------------ 93,694 ------------ TOBACCO (.2%) B.A.T. Capital Corp. 45,000 6.66%, 2000 46,039 Philip Morris Companies Inc. 45,000 8.75%, 1996 46,237 ------------ 92,276 ------------ TRANSPORTATION (.2%) Federal Express Corp. 100,000 6.25%, 1998 100,825 ------------ TOTAL CORPORATE BONDS (COST $8,376,572) 8,439,256 ------------ U.S. GOVERNMENT & AGENCY LONG-TERM OBLIGATIONS (17.2% OF NET ASSETS) U.S. Treasury Bond 920,000 8.125%, 2019 1,156,752 U.S. Treasury Notes 785,000 7.375%, 1997 814,681 1,700,000 5.125%, 1998 1,696,998 1,215,000 6.75%, 1999 1,270,428 230,000 7.75%, 1999 249,587 880,000 7.50%, 2001 969,241 995,000 7.25%, 2004 1,106,470 ------------ TOTAL U.S. GOVERNMENT & AGENCY LONG-TERM OBLIGATIONS (COST $6,887,101) 7,264,157 ------------ FOREIGN GOVERNMENT BONDS (.5% OF NET ASSETS) Province of Ontario 200,000 8.25%, 1996 (COST $203,558) 201,324 ------------ FOREIGN CURRENCY (.1% OF NET ASSETS) 617 Australian Dollar 459 3,251 British Pound Sterling 5,050 913 Canadian Dollar 669 12,978 Deutsche Mark 9,047 9,594 Finnish Markka 2,206 16,385 French Franc 3,346 21,738 Hong Kong Dollar 2,811 1,780,001 Indonesian Rupiah 778 1,486,491 Italian Lira 936 357,668 Japanese Yen 3,464 462 Malaysian Ringgit 182 4,780 Netherlands Guilder 2,979 6,800 Norwegian Krone 1,074 PRINCIPAL MARKET AMOUNT SECURITY VALUE $ 365,395 Spanish Peseta $ 3,012 10,923 Swedish Krona 1,645 3,456 Swiss Franc 2,996 18,720 Thailand Baht 743 ------------ TOTAL FOREIGN CURRENCY (COST $41,286) 41,397 ------------ REPURCHASE AGREEMENTS (6.7% OF NET ASSETS) State Street Bank & Trust Co. 4.75%, due 1/2/96 (COST 2,844,000 $2,844,000) 2,844,000 ------------ TOTAL INVESTMENTS (COST $38,500,754) $42,008,714 ------------ ------------
LIFESPAN CAPITAL APPRECIATION ACCOUNT
NUMBER OF MARKET SHARES SECURITY VALUE COMMON STOCKS (58.7% OF NET ASSETS) AEROSPACE (2.6%) 4,300 General Dynamics Corp. $ 254,237 2,900 Lockheed Martin Corp. 229,100 4,000 Loral Corp. 141,500 1,300 McDonnell Douglas Corp. 119,600 3,400 Rockwell International Corp. 179,775 ------------ 924,212 ------------ AIRLINES (.6%) 800 AMR Corp. 59,400 700 Delta Air Lines, Inc. 51,712 1,700 Northwest Airlines Corp. 86,700 ------------ 197,812 ------------ APPAREL & TEXTILES (1.3%) 3,200 Nautica Enterprises, Inc. 140,000 2,300 St. John Knits, Inc. 122,187 4,400 Tommy Hilfiger Corp. 186,450 ------------ 448,637 ------------ AUTO & AUTO RELATED (.3%) 3,500 Discount Auto Parts, Inc. 108,938 ------------ BANKING (3.8%) 5,900 Bank of Boston Corp. 272,875 3,500 Bankers Trust New York Corp. 232,750 3,800 Chase Manhattan Corp. 230,375 3,500 Morgan (J.P.) & Company, Inc. 280,875 7,200 PNC Bank Corp. 232,200
13 LIFESPAN CAPITAL APPRECIATION ACCOUNT (cont'd)
NUMBER OF MARKET SHARES SECURITY VALUE 300 Wells Fargo & Co. $ 64,800 ------------ 1,313,875 ------------ BUILDING MATERIALS & CONSTRUCTION (.2%) 2,800 USG Corp. 84,000 ------------ BUSINESS EQUIPMENT & SERVICES (.6%) 1,400 Medic Computer Systems, Inc. 84,700 5,500 New England Business Service, Inc. 120,312 ------------ 205,012 ------------ CHEMICALS (2.4%) 700 Cabot Corp. 37,712 1,100 FMC Corp. 74,388 3,000 Goodrich (B.F.) Co. 204,375 1,400 Grace (W.R.) & Co. 82,775 3,000 IMC Global, Inc. 122,625 1,600 Monsanto Co. 196,000 Potash Corporation of Saskatchewan 1,600 Inc. 113,400 ------------ 831,275 ------------ COMMERCIAL SERVICES (2.1%) 4,000 Accustaff, Inc. 176,000 1,900 Alternative Resources Corp. 57,475 Cambridge Technology Partners, 2,700 Inc. 155,250 6,500 Corrections Corporation of America 241,312 3,000 Quintiles Transnational Corp. 123,000 ------------ 753,037 ------------ COMPUTER BUSINESS EQUIPMENT & SERVICES (5.6%) 4,200 Acxiom Corporation 114,975 2,200 ALANTEC Corp. 128,150 6,000 Cognex Corp. 208,500 3,600 Comverse Technology, Inc. 72,000 2,900 Davidson and Associates, Inc. 63,800 4,200 Epic Design Technology, Inc. 88,200 3,400 Global Village Communication 65,875 4,400 Hyperion Software Corp. 93,500 2,000 Inso Corp. 85,000 3,950 McAfee Associates, Inc. 173,306 2,600 Microcom, Inc. 67,600 2,300 National Data Corp. 56,925 3,300 NetManage, Inc. 76,725 1,700 Optical Data Systems, Inc. 42,925 Project Software & Development, 3,200 Inc. 111,600 3,800 Rational Software Corp. 85,025 1,400 Remedy Corp. 82,950 1,300 Shiva Corp. 94,575 2,600 StorMedia, Inc. 94,900 NUMBER OF MARKET SHARES SECURITY VALUE 4,600 Zebra Technologies Corp. $ 156,400 ------------ 1,962,931 ------------ CONGLOMERATES (1.1%) 8,200 Hanson PLC (ADR) 125,050 43 Jardine Matheson Holdings Ltd. 295 2,000 Textron, Inc. 135,000 3,200 Tyco International Ltd. 114,000 ------------ 374,345 ------------ DRUGS & COSMETICS (1.2%) 2,000 American Home Products Corp. 194,000 2,100 Bristol-Myers Squibb Co. 180,337 762 Watson Pharmaceuticals, Inc. 37,338 ------------ 411,675 ------------ ELECTRIC UTILITIES (3.9%) 9,000 Entergy Corp. 263,250 5,600 FPL Group, Inc. 259,700 6,200 Illinova Corp. 186,000 5,600 Kansas City Power & Light Co. 146,300 1,700 Texas Utilities Co. 69,912 9,200 Unicom Corp. 301,300 3,900 Western Resources, Inc. 130,162 ------------ 1,356,624 ------------ ELECTRICAL & ELECTRONIC EQUIPMENT (2.9%) 5,600 Actel Corp. 60,200 3,300 Allen Group, Inc. 73,837 2,900 Burr-Brown Corp. 73,950 1,700 Cable Design Technologies 74,800 1,900 Cidco, Inc. 48,450 1,400 Conner Peripherals, Inc. 29,400 2,750 Credence Systems Corp. 62,906 4,100 GaSonics International 55,350 1,900 Input/Output, Inc. 109,725 4,600 Kemet Corp. 109,825 5,300 S3, Inc. 93,412 2,200 Sanmina Corp. 114,125 3,600 Ultratech Stepper, Inc. 92,700 ------------ 998,680 ------------ ENVIRONMENTAL CONTROL (.8%) 4,700 Tetra Tech, Inc. 106,925 4,400 United Waste Systems, Inc. 163,900 ------------ 270,825 ------------ FINANCIAL SERVICES (.2%) 4,800 Amresco, Inc. 61,200 ------------ FOOD & BEVERAGES (.2%) 1,600 Dole Food Company, Inc. 56,000 ------------ HEALTH SERVICES & HOSPITAL SUPPLIES (3.9%) 3,400 Baxter International Inc. 142,375
The accompanying notes are an integral part of these financial statements. 14 LIFESPAN CAPITAL APPRECIATION ACCOUNT (cont'd)
NUMBER OF MARKET SHARES SECURITY VALUE 2,100 Columbia Healthcare Corp. $ 106,575 2,000 Express Scripts, Inc. 102,000 3,800 Gulf South Medical Supply, Inc. 114,950 2,900 Idexx Laboratories, Inc. 136,300 2,500 MedPartners, Inc. 82,500 3,000 Omnicare, Inc. 134,250 3,100 OrNda Healthcorp 72,075 2,900 PhyCor, Inc. 146,631 2,600 Physician Reliance Network, Inc. 103,350 7,400 Physician Sales & Service, Inc. 210,900 ------------ 1,351,906 ------------ INSURANCE (3.7%) 4,000 Aetna Life & Casualty Co. 277,000 2,639 Allstate Corp. 108,529 1,900 CIGNA Corp. 196,175 2,400 Compdent Corp. 99,600 Hartford Steam Boiler Inspection & 3,000 Insurance Co. 150,000 1,100 Healthsource, Inc. 39,600 3,400 St. Paul Companies Inc. 189,125 2,300 TIG Holdings, Inc. 65,550 2,800 Travelers Group 176,050 ------------ 1,301,629 ------------ IRON & STEEL (1.1%) 3,400 Carpenter Technology Corp. 139,825 27,300 UNR Industries Inc. 235,463 ------------ 375,288 ------------ LEASING (.2%) 3,100 Oxford Resources Corp. 69,750 ------------ LEISURE & ENTERTAINMENT (1.0%) 3,200 Clear Channel Communications, Inc. 141,200 1,900 Mattel, Inc. 58,425 4,950 Regal Cinemas, Inc. 147,263 ------------ 346,888 ------------ LODGING & RESTAURANTS (.5%) 3,700 Boston Chicken, Inc. 118,862 1,600 Papa John's International, Inc. 65,900 ------------ 184,762 ------------ MACHINERY & EQUIPMENT (1.0%) 2,300 Case Corp. 105,225 5,200 Electroglas, Inc. 127,400 800 Harnischfeger Industries, Inc. 26,600 2,200 Mark IV Industries, Inc. 43,450 1,800 Parker-Hannifin Corp. 61,650 ------------ 364,325 ------------ MANUFACTURING (1.5%) 2,100 AGCO Corp. 107,100 1,900 Black & Decker Corp. 66,975 3,800 Blyth Industries, Inc. 112,100 3,800 FSI International, Inc. 76,950 NUMBER OF MARKET SHARES SECURITY VALUE 2,300 Helix Technology Corp. $ 90,850 2,300 Integrated Process Equipment Corp. 54,050 ------------ 508,025 ------------ MISCELLANEOUS (.3%) 2,300 Premark International, Inc. 116,437 ------------ OFFICE EQUIPMENT (.5%) 3,900 US Office Products Co. 88,725 700 Xerox Corp. 95,900 ------------ 184,625 ------------ OIL & GAS (4.5%) 2,300 Amoco Corp. 165,313 4,600 Chevron Corp. 241,500 1,800 Exxon Corp. 144,225 2,200 Mobil Corp. 246,400 11,800 Panhandle Eastern Corp. 328,925 2,150 Repsol SA (ADR) 70,681 1,600 Royal Dutch Petroleum Co. 225,800 4,300 Ultramar Corp. 110,725 1,800 YPF Sociedad Anonima (ADR) 38,925 ------------ 1,572,494 ------------ PAPER & FOREST PRODUCTS (.3%) 1,248 Kimberly-Clark Corp. 103,272 ------------ PRINTING & PUBLISHING (.4%) 2,800 Gartner Group, Inc. 134,050 ------------ REAL ESTATE (1.0%) 5,100 Camden Property Trust 121,763 533 Castle & Cooke Inc. 8,933 6,800 Health & Retirement Property Trust 110,500 3,100 Meditrust Corp. 108,113 ------------ 349,309 ------------ RETAIL TRADE (2.3%) 2,200 CDW Computer Centers, Inc. 89,100 3,600 Corporate Express, Inc. 108,450 2,000 Eckerd Corp. 89,250 1,500 General Nutrition Companies, Inc. 34,500 2,700 Kroger Co. 101,250 1,700 MSC Industrial Direct Co., Inc. 46,750 5,000 Sears, Roebuck & Co. 195,000 2,400 Service Merchandise Co., Inc. 12,000 3,900 Sunglass Hut International, Inc. 92,625 2,500 Waban Inc. 46,875 ------------ 815,800 ------------ SAVINGS & LOAN (.4%) 5,300 Ahmanson (H.F.) & Co. 140,450 ------------ TECHNOLOGY (1.6%) 1,800 Compaq Computer Corp. 86,400 4,200 Electronics for Imaging, Inc. 183,750 1,400 Seagate Technology, Inc. 66,500 2,500 Storage Technology Corp. 59,688
15 LIFESPAN CAPITAL APPRECIATION ACCOUNT (cont'd)
NUMBER OF MARKET SHARES SECURITY VALUE 2,500 Stratus Computer, Inc. $ 86,563 2,000 Sun Microsystems, Inc. 91,250 ------------ 574,151 ------------ TELCOMMUNICATIONS (1.3%) 3,700 Aspect Telecommunications Corp. 123,950 Coherent Communications Systems 3,900 Corp. 75,075 2,600 DSP Communications, Inc. 113,425 3,720 Ericsson LM Tel. Co. (ADR) 72,540 3,700 LCI International, Inc. 75,850 ------------ 460,840 ------------ TELEPHONE UTILITIES (2.5%) 4,500 Ameritech Corp. 265,500 5,800 GTE Corp. 255,200 Intermedia Communications of 50 Florida, Inc. 500 5,300 NYNEX Corp. 286,200 3,900 VTEL Corp. 72,150 ------------ 879,550 ------------ TRANSPORTATION (.9%) 4,900 Atlas Air, Inc. 82,075 3,200 Fritz Companies, Inc. 132,800 1,400 Wisconsin Central Transportation 92,050 ------------ 306,925 ------------ TOTAL COMMON STOCKS (COST $17,361,336) 20,499,554 ------------ FOREIGN COMMON STOCKS (15.6% OF NET ASSETS) AUTO & AUTO RELATED (.6%) 1,100 Autoliv AB (Sweden) 64,280 2,000 Bridgestone Corp. (Japan) 31,768 1,120 Michelin CGDE (France) 44,667 4,000 Shinmaywa Industries Ltd. (Japan) 33,007 806 Valeo SA (France) 37,329 ------------ 211,051 ------------ BANKING (1.3%) 430 Banco Popular Espanol (Spain) 79,300 1,600 Banco Santander SA (Spain) 80,330 Bangkok Bank Company Ltd. 4,500 (Thailand) 54,665 1,100 Deutsche Bank AG (Germany) 52,121 2,400 HSBC Holdings PLC (Hong Kong) 36,314 7,000 Malayan Banking Berhad (Malaysia) 58,983 240 Societe Generale Paris (France) 29,651 5,000 Thai Farmers Bank Ltd. (Thailand) 50,417 ------------ 441,781 ------------ BUILDING MATERIALS & CONSTRUCTION (.3%) Autopistas Concesionaria Espanola 4,000 SA (Spain) 45,507 NUMBER OF MARKET SHARES SECURITY VALUE 290 Compagnie de Saint-Gobain (France) $ 31,623 PT Indocement Tunggal Prakar 8,000 (Indonesia) 31,489 ------------ 108,619 ------------ CHEMICALS (.2%) 240 Akzo Nobel (Netherlands) 27,758 4,000 Sekisui Chemical Co. (Japan) 58,886 ------------ 86,644 ------------ COMPUTER BUSINESS EQUIPMENT & SERVICES (.4%) 9,000 Fujitsu Ltd. (Japan) 100,242 700 Getronics NV (Netherlands) 32,716 ------------ 132,958 ------------ CONGLOMERATES (.9%) 2,307 Canadian Pacific Ltd. (Canada) 42,018 50,000 First Pacific Co. (Hong Kong) 55,609 11,000 Hutchison Whampoa Ltd. (Hong Kong) 67,003 210 Mannesmann AG (Germany) 66,857 26,000 Renong Berhad (Malaysia) 38,493 130 Viag AG (Germany) 52,109 ------------ 322,089 ------------ DRUGS & COSMETICS (1.9%) 1,900 Astra AB (Sweden) 75,832 105 Ciba-Geigy AG (Switzerland) 92,393 7,500 PT Kalbe Farma (Indonesia) 25,421 105 Sandoz AG (Switzerland) 96,125 1,075 Schering AG (Germany) 71,215 SmithKline Beecham (United 8,594 Kingdom) 94,762 SmithKline Bch/Bec Units (United 5,552 Kingdom) 60,530 4,000 Takeda Chemical Industries (Japan) 65,860 4,250 Zeneca Group PLC (United Kingdom) 82,208 ------------ 664,346 ------------ ELECTRIC UTILITIES (.3%) 3,913 Powergen PLC (United Kingdom) 32,330 2,130 VEBA AG (Germany) 90,427 ------------ 122,757 ------------ ELECTRICAL & ELECTRONIC EQUIPMENT (1.6%) BBC AG Brown Boveri & Cie. 70 (Switzerland) 81,318 6,000 Hitachi Ltd. (Japan) 60,436 600 Keyence Corp. (Japan) 69,153 1,000 Kyocera Corp. (Japan) 74,286 Matsushita Electric Industrial 5,000 Co., Ltd. (Japan) 81,356 3,000 Matsushita Electric Works (Japan) 31,671
The accompanying notes are an integral part of these financial statements. 16 LIFESPAN CAPITAL APPRECIATION ACCOUNT (cont'd)
NUMBER OF MARKET SHARES SECURITY VALUE Philips Electronics NV 2,130 (Netherlands) $ 76,986 11,000 Toshiba Corp. (Japan) 86,189 ------------ 561,395 ------------ FINANCIAL SERVICES (.6%) 260 Compagnie Bancaire SA (France) 29,095 International Nederlanden Groep NV 1,101 (Netherlands) 73,551 5,000 Itochu Corporation (Japan) 33,656 1,000 Nichiei Co., Ltd. (Japan) 74,576 ------------ 210,878 ------------ FOOD & BEVERAGES (.4%) 580 Heineken NV (Netherlands) 95,463 55 Nestle SA (Switzerland) 60,841 ------------ 156,304 ------------ INSURANCE (1.0%) 2,120 AEGON NV (Netherlands) 93,799 1,575 AXA (France) 106,136 27 Munich Reinsurance (Germany) 58,724 1,500 Skandia Foersaekrings AB (Sweden) 40,552 Union des Assurances Federales SA 440 (France) 52,563 ------------ 351,774 ------------ IRON & STEEL (.8%) 450 Acerinox SA (Spain) 45,519 3,000 Hitachi Metals Ltd. (Japan) 37,482 7,000 Kawasaki Steel (Japan) 24,407 13,000 Nisshin Steel Co., Ltd. (Japan) 52,504 2,825 Outokumpu Oy (Finland) 44,817 Rio Tinto-Zinc Corp. PLC (United 4,350 Kingdom) 63,233 9,000 Sumitomo Metal Industries (Japan) 27,283 ------------ 295,245 ------------ LEISURE & ENTERTAINMENT (.3%) Carlton Communications PLC (United 3,600 Kingdom) 53,980 Television Broadcasts Ltd. (Hong 9,000 Kong) 32,066 1,400 Thorn EMI PLC (United Kingdom) 32,973 ------------ 119,019 ------------ MACHINERY & EQUIPMENT (.6%) 900 Mabuchi Motor Co. (Japan) 55,961 Mitsubishi Heavy Industries Ltd. 7,000 (Japan) 55,797 4,000 NSK Limited (Japan) 29,056 500 SMC Corp. (Japan) 36,174 NUMBER OF MARKET SHARES SECURITY VALUE 1,000 THK Company Ltd. (Japan) $ 28,475 ------------ 205,463 ------------ MANUFACTURING (.1%) Nippon Electric Glass Co., Ltd. 1,000 (Japan) 18,983 ------------ METALS & MINING (.1%) Broken Hill Proprietary Co., Ltd. 386 (Australia) 5,451 7,400 Poseidon Gold Ltd. (Australia) 14,741 Western Mining Corp. Holdings Ltd. 2,600 (Australia) 16,697 ------------ 36,889 ------------ MISCELLANEOUS (.3%) SGS Societe Generale de Surveillance Holdings SA 33 (Switzerland) 65,514 60 Siemens AG (Germany) 32,834 ------------ 98,348 ------------ OFFICE EQUIPMENT (.5%) 6,000 Canon Inc. (Japan) 108,668 6,000 Ricoh Corp., Ltd. (Japan) 65,666 ------------ 174,334 ------------ OIL & GAS (1.3%) 26,000 Ampolex Ltd. (Australia) 56,816 6,000 British Gas Corp. (United Kingdom) 23,668 British Petroleum Co., Ltd. 6,764 (United Kingdom) 56,463 Compagnie Francaise de Petroleum 1,641 Total (France) 110,752 Hong Kong & China Gas Company Ltd. 16,000 (Hong Kong) 25,761 1,250 Imperial Oil Ltd. (Canada) 44,970 7,393 Lasmo PLC (United Kingdom) 19,978 4,400 Saga Petroleum (Norway) 58,698 Societe Nationale Elf Aquitaine 624 (France) 45,975 ------------ 443,081 ------------ PAPER & FOREST PRODUCTS (.1%) 800 Mo och Domsjo AB (Sweden) 34,098 ------------ PRINTING & PUBLISHING (.3%) 1,876 De la Rue PLC (United Kingdom) 18,967 2,600 Elsevier NV (Netherlands) 34,673 450 Wolters-Kluwer NV (Netherlands) 42,569 ------------ 96,209 ------------ RETAIL TRADE (.9%) 140 Adidas AG (Germany) 7,407 4,000 Argyll Group PLC (United Kingdom) 21,121 100 Carrefour Supermarche SA (France) 60,670 1,000 Ito-Yokado Ltd. (Japan) 61,598 1,000 JUSCO Co. (Japan) 26,053
17 LIFESPAN CAPITAL APPRECIATION ACCOUNT (cont'd)
NUMBER OF MARKET SHARES SECURITY VALUE LVMH Louis Vuitton Moet-Hennessy 295 (France) $ 61,446 8,700 Next PLC (United Kingdom) 61,612 ------------ 299,907 ------------ TELECOMMUNICATIONS (.4%) 1,300 Nokia AB (Finland) 51,111 22,500 Telecom Italia S.p.A (Italy) 34,994 Telecom Italia Mobile S.p.A 22,000 (Italy) 38,719 ------------ 124,824 ------------ TELEPHONE UTILITIES (.3%) 8 DDI Corporation (Japan) 61,985 2,300 Telefonica de Espana (Spain) 31,855 ------------ 93,840 ------------ TOBACCO (.1%) 4,500 PT HM Sampoerna (Indonesia) 46,840 ------------ TOTAL FOREIGN COMMON STOCKS (COST $5,167,302) 5,457,676 ------------ CONVERTIBLE PREFERRED STOCKS (.3% OF NET ASSETS) MACHINERY & EQUIPMENT (.3%) 1,200 Case Corp. (COST $114,800) 114,600 ------------ FOREIGN PREFERRED STOCKS (1.0% OF NET ASSETS) AUTO & AUTO RELATED (.1%) 16,000 Fiat S.p.A. (Italy) 29,217 ------------ COMPUTER BUSINESS EQUIPMENT & SERVICES (.2%) 430 SAP AG (Germany) 65,047 ------------ CONGLOMERATES (.1%) 200 RWE AG (Germany) 55,769 ------------ ELECTRIC UTILITIES (.2%) 3,325,000 CEMIG (Brazil) 73,547 ------------ FINANCIAL SERVICES (.2%) 6,651,983 Banco Bradesco SA (Brazil) 57,092 ------------ TELECOMMUNICATIONS (.2%) Telecomunicacoes de Sao Paulo SA 385,000 (Brazil) 56,641 ------------ TOTAL FOREIGN PREFERRED STOCKS (COST $317,918) 337,313 ------------ PRINCIPAL MARKET AMOUNT SECURITY VALUE CORPORATE BONDS (9.8% OF NET ASSETS) APPAREL & TEXTILES (.1%) U.S. Leather, Inc. $ 50,000 10.25%, 2003 $ 42,250 ------------ AUTO & AUTO RELATED (.1%) Venture Holdings 50,000 9.75%, 2004 41,750 ------------ CHEMICALS (1.1%) Crain Industries, Inc. 25,000 13.50%, 2005 25,375 G-I Holdings 100,000 0.00%, 1998 77,500 Harris Chemical North America, Inc. 50,000 0.00%, 2001 47,500 IMC Global, Inc. 100,000 6.25%, 2001 126,000 LaRoche Industries, Inc. 25,000 13.00%, 2004 26,562 NL Industries, Inc. 100,000 0.00%, 2005 76,750 ------------ 379,687 ------------ CONGLOMERATES (.1%) Alpine Group, Inc. 50,000 12.25%, 2003 49,000 ------------ DRUGS & COSMETICS (.3%) Revlon Consumer Products Corp. 50,000 9.375%, 2001 50,625 Revlon Worldwide Corp. 50,000 0.00%, 1998 37,125 ------------ 87,750 ------------ HEALTH SERVICES & HOSPITAL SUPPLIES (.2%) Integrated Health Services, Inc. 50,000 9.625%, 2002 51,000 ------------ IRON & STEEL (.4%) Geneva Steel Co. 25,000 9.50%, 2004 19,500 Republic Engineered Steels, Inc. 25,000 9.875%, 2001 22,500 WCI Steel, Inc. 50,000 10.50%, 2002 48,625 Wierton Steel Corp. 50,000 10.75%, 2005 47,125 ------------ 137,750 ------------ LEASING (.2%) GPA Delaware, Inc. 75,000 8.75%, 1998 70,500 ------------ LEISURE & ENTERTAINMENT (2.7%) Adelphia Communications Corp. 25,000 12.50%, 2002 24,500
The accompanying notes are an integral part of these financial statements. 18 LIFESPAN CAPITAL APPRECIATION ACCOUNT (cont'd)
PRINCIPAL MARKET AMOUNT SECURITY VALUE Bally Park Place Funding $ 100,000 9.25%, 2004 $ 101,750 Bell Cablemedia PLC 75,000 0.00%, 2004 52,875 Casino America, Inc. 75,000 11.50%, 2001 69,375 Comcast Corp. 50,000 9.375%, 2005 52,875 Comcast UK Cable Partners Ltd. 50,000 0.00%, 2007 29,250 Continental Cablevision, Inc. 100,000 9.50%, 2013 107,500 Greate Bay Property Funding 25,000 10.875%, 2004 21,937 GNF Corp. 50,000 10.625%, 2003 46,625 Helicon Group Ltd. 50,000 9.00%, 2003 48,250 New World Communications Corp. 125,000 0.00%, 1999 86,250 Santa Fe Hotel 45,000 11.00%, 2000 28,350 Selmer Company, Inc. 50,000 11.00%, 2005 49,250 Sinclair Broadcast Group, Inc. 50,000 10.00%, 2005 51,000 Trump Plaza Funding 50,000 10.875%, 2001 51,750 Trump Taj Mahal 75,000 0.00%, 1999 72,375 United International Holdings, Inc. 100,000 0.00%, 1999 58,750 ------------ 952,662 ------------ MACHINERY & EQUIPMENT (.1%) Specialty Equipment Companies, Inc. 50,000 11.375%, 2003 50,750 ------------ MANUFACTURING (.9%) American Standard, Inc. 50,000 0.00%, 2005 42,875 Day International Group, Inc. 50,000 11.125%, 2005 51,125 Figgie International, Inc. 50,000 9.875%, 1999 50,000 Huntsman Corp. 50,000 10.625%, 2001 55,800 Interlake Corp. 50,000 12.125%, 2002 47,500 PRINCIPAL MARKET AMOUNT SECURITY VALUE International Wire Group, Inc. $ 50,000 11.75%, 2005 $ 47,750 Jordan Industries, Inc. 25,000 10.375%, 2003 22,250 ------------ 317,300 ------------ OIL & GAS (.3%) Maxus Energy Corp. 50,000 9.875%, 2002 50,250 Mesa Capital CP 50,000 0.00%, 1998 44,250 ------------ 94,500 ------------ PAPER & FOREST PRODUCTS (1.0%) Crown Packaging Holdings Ltd. 100,000 0.00%, 2003 44,500 Doman Industries Ltd. 50,000 8.75%, 2004 47,375 Gaylord Container Corp. 50,000 0.00%, 2005 49,250 Indah Kiat Pulp & Paper Corp. 50,000 11.875%, 2002 50,500 Malette, Inc. 50,000 12.25%, 2004 56,000 Stone Consolidated Corp. 50,000 10.25%, 2000 53,500 Stone Container Corp. 50,000 9.875%, 2001 48,625 ------------ 349,750 ------------ PRINTING & PUBLISHING (.1%) Marvel III Holdings Inc. 25,000 9.125%, 1998 23,000 ------------ RETAIL TRADE (1.1%) Cole National Corp. 50,000 11.25%, 2001 50,125 Dairy Mart Convenience Stores, Inc. 50,000 10.25%, 2004 42,250 Duane Reade Corp. 50,000 12.00%, 2002 47,750 Farm Fresh, Inc. 50,000 12.25%, 2000 42,250 Hills Stores Co. 50,000 10.25%, 2003 43,500 Pathmark Stores, Inc. 100,000 0.00%, 2003 61,250 Ralph's Grocery Co. 50,000 11.00%, 2005 49,500
19 LIFESPAN CAPITAL APPRECIATION ACCOUNT (cont'd)
PRINCIPAL MARKET AMOUNT SECURITY VALUE Waban, Inc. $ 50,000 11.00%, 2004 $ 51,250 ------------ 387,875 ------------ TECHNOLOGY (.3%) Storage Technology Corp. 85,000 7.00%, 2008 94,775 ------------ TELECOMMUNICATIONS (.8%) Centennial Cellular Corp. 50,000 10.125%, 2005 52,625 Intermedia Communications of Florida, Inc. 50,000 13.50%, 2005 55,750 MFS Communications Company, Inc. 75,000 0.00%, 2004 60,563 Nextel Communications, Inc. 100,000 0.00%, 2004 54,250 Paging Network Inc. 50,000 10.125%, 2007 54,125 ------------ 277,313 ------------ TOTAL CORPORATE BONDS (COST $3,398,331) 3,407,612 ------------ U.S. GOVERNMENT & AGENCY LONG-TERM OBLIGATIONS (4.4% OF NET ASSETS) U.S. Treasury Bond 230,000 8.125%, 2019 289,188 U.S. Treasury Notes 400,000 5.125%, 1998 399,312 260,000 6.75%, 1999 271,861 220,000 7.50%, 2001 242,310 310,000 7.25%, 2004 344,730 ------------ PRINCIPAL MARKET AMOUNT SECURITY VALUE TOTAL U.S. GOVERNMENT & AGENCY LONG-TERM OBLIGATIONS (COST $1,462,757) $ 1,547,401 ------------ FOREIGN CURRENCY (.2% OF NET ASSETS) $ 615 Australian Dollar 457 3,116 British Pound Sterling 4,840 922 Canadian Dollar 675 6,123 Deutsche Mark 4,269 9,592 Finnish Markka 2,205 16,522 French Franc 3,374 21,732 Hong Kong Dollar 2,810 1,780,001 Indonesian Rupiah 778 1,483,093 Italian Lira 934 2,317,103 Japanese Yen 22,442 462 Malaysian Ringgit 182 4,792 Netherlands Guilder 2,986 6,800 Norwegian Krone 1,074 340,879 Spanish Peseta 2,810 10,923 Swedish Krona 1,645 3,465 Swiss Franc 3,004 18,720 Thailand Baht 743 ------------ TOTAL FOREIGN CURRENCY (COST $55,275) 55,228 ------------ REPURCHASE AGREEMENTS (9.9% OF NET ASSETS) State Street Bank & Trust Co. 4.75%, due 1/2/96 (COST 3,474,000 $3,474,000) 3,474,000 ------------ TOTAL INVESTMENTS (COST $31,351,719) $34,893,384 ------------ ------------
NOTES TO SCHEDULE OF INVESTMENTS December 31, 1995 A C C O U N T S 1. Aggregate gross unrealized appreciation (depreciation) as of December 31, 1995, based on cost for Federal income tax purposes, was as DIVERSIFIED CAPITAL follows: INCOME BALANCED APPRECIATION Aggregate gross unrealized appreciation $1,550,341 $4,146,511 $ 4,178,080 Aggregate gross unrealized depreciation (138,231) (638,551) (636,415) -------------- -------------- -------------- Net unrealized appreciation (excluding foreign currency forward contracts) $1,412,110 $3,507,960 $ 3,541,665 -------------- -------------- -------------- -------------- -------------- -------------- 2. The aggregate cost of investments for Federal income tax purposes was: $23,032,521 $38,500,754 $ 31,351,719 -------------- -------------- -------------- -------------- -------------- -------------- 3. Purchases and sales of securities (excluding short-term securities) for the period from May 1, 1995 (Inception) to December 31, 1995 are summarized as follows: Purchases $27,906,183 $52,651,841 $ 40,091,919 Sales $6,488,016 $18,085,046 $ 13,099,789
The accompanying notes are an integral part of these financial statements. 20 STATEMENT OF NET ASSETS CONNECTICUT MUTUAL INVESTMENT ACCOUNTS, INC. December 31, 1995
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 $16,926,593, $15,467,231, $4,861,088) $17,567,294 $15,904,737 $ 4,955,013 Common stocks, at market value (Cost $4,633,928, $19,743,159, $22,528,638) 5,405,737 22,793,918 25,957,230 Preferred stocks, at market value (Cost $115,000, $405,078, $432,718) 114,600 424,662 451,913 Foreign currency, at market value (Cost $41,286, $55,275) -- 41,397 55,228 Short-term securities 1,357,000 2,844,000 3,474,000 ------------ ------------ ------------ 24,444,631 42,008,714 34,893,384 Cash 43,601 63,154 7,499 Investment income receivable 355,796 349,287 130,387 Receivable from securities sold 1,621 13,698 17,040 Receivable from Fund shares sold -- 34,387 33,446 Foreign currency market receivable from forward contracts -- 48,548 48,696 Foreign tax receivable -- 4,814 4,830 ------------ ------------ ------------ Total Assets 24,845,649 42,522,602 35,135,282 ------------ ------------ ------------ LIABILITIES Accrued expenses payable 33,434 58,385 44,108 Payable for securities purchased 680 132,460 162,649 Payable for Fund shares redeemed -- 30,065 -- ------------ ------------ ------------ Total Liabilities 34,114 220,910 206,757 ------------ ------------ ------------ NET ASSETS $24,811,535 $42,301,692 $34,928,525 ------------ ------------ ------------ ------------ ------------ ------------ OUTSTANDING SHARES -- CLASS A 2,300,898 3,787,271 3,018,681 ------------ ------------ ------------ ------------ ------------ ------------ OUTSTANDING SHARES -- CLASS B 17,888 39,478 48,894 ------------ ------------ ------------ ------------ ------------ ------------ NET ASSET VALUE PER SHARE -- CLASS A $10.70 $11.05 $11.39 NET ASSET VALUE PER SHARE -- CLASS B $10.74 $11.16 $11.47 NET ASSETS CONSIST OF: Capital (par value and paid-in surplus) $23,327,617 $38,679,189 $31,288,972 Undistributed (distribution in excess of) net investment income 12,342 (24,131) (29,003) Accumulated undistributed net realized gain 59,466 90,126 78,195 Net unrealized appreciation 1,412,110 3,556,508 3,590,361 ------------ ------------ ------------ NET ASSETS $24,811,535 $42,301,692 $34,928,525 ------------ ------------ ------------ ------------ ------------ ------------
21 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 December 31, 1995
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 $ 847,638 $ 914,578 $ 408,733 Dividends 168,991 345,473 345,890 --------------- --------------- --------------- Total Income 1,016,629 1,260,051 754,623 --------------- --------------- --------------- Expenses: Investment advisory fees 111,599 214,011 166,212 Distribution fees -- Class A 37,134 62,792 48,745 Distribution fees -- Class B 264 608 563 Custodian fees 37,643 76,233 59,853 Registration fees 15,594 16,485 16,128 Other 21,163 20,985 12,468 --------------- --------------- --------------- Total Expenses 223,397 391,114 303,969 --------------- --------------- --------------- NET INVESTMENT INCOME 793,232 868,937 450,654 --------------- --------------- --------------- REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS Net realized gain on investments 159,534 974,147 821,173 Net realized loss on foreign currency -- (50,377) (51,022) Net unrealized appreciation on investments 1,412,110 3,507,960 3,541,665 Net unrealized appreciation on foreign currency forward contracts -- 48,548 48,696 --------------- --------------- --------------- NET REALIZED AND UNREALIZED GAIN ON INVESTMENTS 1,571,644 4,480,278 4,360,512 --------------- --------------- --------------- NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS $2,364,876 $5,349,215 $4,811,166 --------------- --------------- --------------- --------------- --------------- ---------------
The accompanying notes are an integral part of these financial statements. 22 STATEMENT OF CHANGES IN NET ASSETS CONNECTICUT MUTUAL INVESTMENT ACCOUNTS, INC. For the period from May 1, 1995 (Inception) to December 31, 1995
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 $ 793,232 $ 868,937 $ 450,654 Net realized gain on investments 159,534 974,147 821,173 Net realized loss on foreign currency -- (50,377) (51,022) Net unrealized appreciation 1,412,110 3,556,508 3,590,361 ------------ ------------ ------------ Net increase in net assets resulting from operations 2,364,876 5,349,215 4,811,166 ------------ ------------ ------------ DIVIDENDS TO SHAREHOLDERS FROM: Net investment income -- Class A (779,588) (890,951) (478,706) Net investment income -- Class B (1,302) (2,117) (951) Net realized gain on investments -- Class A (99,296) (824,982) (680,837) Net realized gain on investments -- Class B (772) (8,662) (11,119) ------------ ------------ ------------ (880,958) (1,726,712) (1,171,613) ------------ ------------ ------------ FROM CAPITAL SHARE TRANSACTIONS: Net proceeds from sale of shares 22,467,129 37,008,896 30,465,127 Net asset value of shares issued to shareholders from reinvestment of dividends 862,652 1,724,847 1,171,470 Cost of shares reacquired (2,164) (54,554) (347,625) ------------ ------------ ------------ Increase in net assets derived from capital share transactions 23,327,617 38,679,189 31,288,972 ------------ ------------ ------------ NET INCREASE IN NET ASSETS 24,811,535 42,301,692 34,928,525 NET ASSETS -- BEGINNING OF PERIOD -- -- -- ------------ ------------ ------------ NET ASSETS -- END OF PERIOD $24,811,535 $42,301,692 $34,928,525 ------------ ------------ ------------ ------------ ------------ ------------ Undistributed (distribution in excess of) net investment income included in net assets at end of period $12,342 $(24,131) $(29,003) Undistributed net realized gain on investments and foreign currency included in net assets at end of period $59,466 $90,126 $78,195
23 The accompanying notes are an integral part of these financial statements. FINANCIAL HIGHLIGHTS CONNECTICUT MUTUAL INVESTMENT ACCOUNTS, INC. For the period from May 1, 1995 (Inception) to December 31, 1995 -- Class A For the period from October 1, 1995 (Inception) to December 31, 1995 -- Class B
Selected data for a share of capital stock outstanding throughout the period:
NET REALIZED DISTRIBUTIONS PERIOD 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 -- CLASS A 1995(a) $.37 $(.36) $ .73 $(.04) $10.00 $10.70 LIFESPAN DIVERSIFIED INCOME ACCOUNT -- CLASS B 1995(b) .12 (.11) .32 (.04) 10.45 10.74 LIFESPAN BALANCED ACCOUNT -- CLASS A 1995(a) .24 (.25) 1.29 (.23) 10.00 11.05 LIFESPAN BALANCED ACCOUNT -- CLASS B 1995(b) .05 (.06) .45 (.23) 10.95 11.16 LIFESPAN CAPITAL APPRECIATION ACCOUNT -- CLASS A 1995(a) .16 (.17) 1.63 (.23) 10.00 11.39 LIFESPAN CAPITAL APPRECIATION ACCOUNT -- CLASS B 1995(b) .03 (.03) .56 (.23) 11.14 11.47 RATIO OF PERIOD TO INCOME TO NET ASSETS ENDED AVERAGE AVERAGE AT END ANNUAL DECEMBE NET NET PORTFOLIO OF PERIOD TOTAL 31 ASSETS(C) ASSETS(C) TURNOVER(C) (IN THOUSANDS) RETURN(D) ------- LIFESPA 1995(a) 1.50% 5.35% 45.78% $24,619 11.22% LIFESPA 1995(b) 2.25 5.23 45.78 192 4.30 LIFESPA 1995(a) 1.55 3.47 76.26 41,861 15.33 LIFESPA 1995(b) 2.30 3.01 76.26 441 4.49 LIFESPA 1995(a) 1.55 2.32 71.77 34,368 18.02 LIFESPA 1995(b) 2.30 1.70 71.77 561 5.34
(a) For the period from May 1, 1995 (Inception) to December 31, 1995 (b) For the period from October 1, 1995 (Inception) to December 31, 1995 (c) Annualized (d) Annual total returns do not include the effect of sales charges The accompanying notes are an integral part of these financial statements. 24 NOTES TO FINANCIAL STATEMENTS CONNECTICUT MUTUAL INVESTMENT ACCOUNTS, INC. For the period from May 1, 1995 (Inception) to December 31, 1995
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. The Fund offers both Class A and Class B shares. Class A shares are sold with a front-end sales charge. Class B shares may be subject to a contingent deferred sales charge. 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 the 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 eight months ended December 31, 1995, these transactions resulted in net currency gains of $38,434 and $32,468 for the Balanced and Capital Appreciation Accounts, respectively. At December 31, 1995, all foreign currency has been translated to U.S. dollars using the prevailing exchange rate on the last business day of the year. (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. (d)GAINS AND LOSSES - Realized gains and losses from sales of investments are determined on the identified cost basis. (e)AFFILIATE HOLDINGS - Connecticut Mutual Life Insurance Company owns 8,155,236 shares of the three LifeSpan Accounts of the Fund as follows:
CAPITAL DIVERSIFIED INCOME BALANCED APPRECIATION 2,078,814 3,485,974 2,590,448
(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 Account's first $250 million of average daily net assets and 0.65%, 0.75% and 0.75%, respectively, on such assets over $250 million. The investment advisory fees, which also cover certain administrative and management services, amounted to $491,822 for all Accounts for the eight months ended December 31, 1995. As compensation for their services to the Accounts, the Sub-Advisers received the following fees from the Investment Adviser for the eight months ended December 31, 1995: Scudder, Stevens & Clark, Inc. -- $55,899, BEA Associates -- $34,923 and Pilgrim Baxter & Associates -- $51,015. For the eight months ended December 31, 1995, the Investment Adviser, serving as principal underwriter for sale of shares of the Accounts, earned $350,723 related to sales charges deducted from proceeds for shares sold. 25 3. DISTRIBUTION PLANS Each Account has adopted a distribution plan for both Class A shares (Class A Plan) and Class B shares (Class B Plan) designed to meet the requirements of Rule 12b-1 under the Investment Company Act of 1940. Under the Class A Plan of each Account, each Account may make payments for personal services and/or the maintenance of shareholder accounts to account executives of Connecticut Mutual Financial Services, Inc. (CMFS), the Distributor, and other broker dealer firms with which CMFS has agreements in amounts not exceeding 0.25% of the average daily net assets of the Account's Class A shares for any fiscal year. Effective May 1, 1995, the LifeSpan Diversified Income, Balanced and Capital Appreciation Accounts commenced accruing fees daily and paying fees monthly to the Distributor. For the eight months ended December 31, 1995, the Distributor received $148,671 in fees from these Accounts. Under each Account's Class B Plan, such Account may pay CMFS a service fee at the annualized rate of up to 0.25% of the average daily net assets of the Account's Class B shares for its expenditures incurred in servicing and maintaining shareholder accounts, and may pay CMFS a distribution fee at the annualized rate of up to 0.75% of the average daily net assets of the Account's Class B shares for its expenditures incurred in providing services as Distributor. Effective October 1, 1995, the LifeSpan Diversified Income, Balanced and Capital Appreciation Accounts commenced accruing fees daily and paying fees monthly to the Distributor. For the three months ended December 31, 1995, the Distributor received $1,435 in fees from these Accounts. 4. 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. 5. CAPITAL STOCK The authorized capital stock of the Fund at December 31, 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:
CLASS A SHARES FOR THE PERIOD FROM MAY 1, 1995 (INCEPTION) TO DECEMBER 31, 1995 DIVERSIFIED CAPITAL INCOME BALANCED APPRECIATION Shares authorized (in millions) 200 200 200 Shares sold 2,218,682 3,635,283 2,945,839 Shares issued to shareholders from reinvestment of dividends 82,386 156,931 103,358 --------------- --------------- --------------- Total issued 2,301,068 3,792,214 3,049,197 Shares reacquired (170) (4,943) (30,516) --------------- --------------- --------------- Net increase 2,300,898 3,787,271 3,018,681 --------------- --------------- --------------- --------------- --------------- ---------------
CLASS B SHARES FOR THE PERIOD FROM OCTOBER 1, 1995 (INCEPTION) TO DECEMBER 31, 1995 DIVERSIFIED CAPITAL INCOME BALANCED APPRECIATION Shares authorized (in millions) 50 50 50 Shares sold 17,728 38,550 47,790 Shares issued to shareholders from reinvestment of dividends 194 939 1,104 ------------- ------------- ------------- Total issued 17,922 39,489 48,894 Shares reacquired (34) (11) 0 ------------- ------------- ------------- Net increase 17,888 39,478 48,894 ------------- ------------- ------------- ------------- ------------- -------------
6. SUBSEQUENT EVENT On January 27, 1996, the policyholders of Connecticut Mutual Life Insurance Company (CML) approved a merger, subject to regulatory approval, of CML with Massachusetts Mutual Life Insurance Company (MML). In connection with this merger, the shareholders of the Fund are being asked to consider and approve a new investment advisory agreement between the Fund and OppenheimerFunds, Inc., an indirect subsidiary of MML. 26 REPORT OF INDEPENDENT PUBLIC ACCOUNTANTS To the Board of Directors of Connecticut Mutual Investment Accounts, Inc.: We have audited the accompanying statement of net assets, including the schedule of investments, of Connecticut Mutual Investment Accounts, Inc. (a Maryland corporation) LifeSpan Diversified Income, LifeSpan Balanced and LifeSpan Capital Appreciation Accounts (the LifeSpan Accounts) as of December 31, 1995, and the related statements of operations and changes in net assets for the period from inception (May 1, 1995) to December 31, 1995, and the financial highlights for the period indicated. These financial statements and financial highlights are the responsibility of the Accounts' management. Our responsibility is to express an opinion on these financial statements and financial highlights based on our audit. We conducted our audit in accordance with generally accepted auditing standards. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements and financial highlights are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. Our procedures included confirmation of securities owned as of December 31, 1995, by correspondence with the custodian bank. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our opinion. In our opinion, the financial statements and financial highlights referred to above present fairly, in all material respects, the financial position of each of the respective LifeSpan Accounts of Connecticut Mutual Investment Accounts, Inc. as of December 31, 1995, the results of their operations and changes in their net assets for the period from inception (May 1, 1995) to December 31, 1995, and the financial highlights for the period indicated, in conformity with generally accepted accounting principles. ARTHUR ANDERSEN LLP Hartford, Connecticut February 15, 1996 27 CONNECTICUT MUTUAL INVESTMENT ACCOUNTS, INC. ------------------------------------------- BOARD OF DIRECTORS AND OFFICERS DIRECTORS RICHARD H. AYERS, Director Chairman and Chief Executive Officer The Stanley Works DAVID E. A. CARSON, Director President, Chairman and Chief Executive Officer People's Bank RICHARD W. GREENE, Director Executive Vice President and Treasurer University of Rochester BEVERLY L. HAMILTON, Director President ARCO Investment Management Company DONALD H. POND, JR., President and Director Retired Executive Vice President Connecticut Mutual Life Insurance Company DAVID E. SAMS, JR., DIRECTOR President and Chief Executive Officer Connecticut Mutual Life Insurance Company OFFICERS DONALD H. POND, JR., President and Director Retired Executive Vice President Connecticut Mutual Life Insurance Company 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-----