-----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, JmCz5wDHJR60SUu0SzQcPTaGOHbHz+gEFJlLBi88igcQfTQoib/vxep1XJONKKJD Z3i59VYy47O612bSWYIXHA== 0000049975-96-000005.txt : 19961121 0000049975-96-000005.hdr.sgml : 19961121 ACCESSION NUMBER: 0000049975-96-000005 CONFORMED SUBMISSION TYPE: N-30B-2 PUBLIC DOCUMENT COUNT: 1 CONFORMED PERIOD OF REPORT: 19960930 FILED AS OF DATE: 19961120 SROS: NYSE FILER: COMPANY DATA: COMPANY CONFORMED NAME: INA INVESTMENT SECURITIES INC CENTRAL INDEX KEY: 0000049975 STANDARD INDUSTRIAL CLASSIFICATION: [] IRS NUMBER: 231886274 FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: N-30B-2 SEC ACT: 1940 Act SEC FILE NUMBER: 811-02299 FILM NUMBER: 96669533 BUSINESS ADDRESS: STREET 1: 950 WINTER STREET STREET 2: SUITE 1200 CITY: WALTHAM STATE: MA ZIP: 02154 BUSINESS PHONE: 860.726.3700 MAIL ADDRESS: STREET 1: S 217 900 COTTAGE GROVE ROAD CITY: HARTFORD STATE: CT ZIP: 06152-2217 FORMER COMPANY: FORMER CONFORMED NAME: INA INCOME & CONVERTIBLE FUND DATE OF NAME CHANGE: 19730426 N-30B-2 1 THIRD QUARTER REPORT TO SHAREHOLDERS - -------------------------------------------------------------------------------- DEAR SHAREHOLDERS: We are pleased to provide this report for INA Investment Securities, Inc., (the "Company"), covering the quarter ended September 30, 1996. MARKET VOLATILITY MARKS THIRD QUARTER During the third quarter of 1996, investors reacted strongly to an ambiguous economic scenario, as news alternately suggested decelerating and accelerating growth and provided mixed inflation signals. A quiescent Federal Reserve (Fed) and muted inflation numbers helped the market rebound from intra-quarter lows. The benchmark 30-year Treasury yields fluctuated within a range of approximately 6.75% to 7.25%, and ended the quarter little changed from beginning levels. Corporate and high yield sectors continued their very strong performance. The bond market, as measured by the Lehman Brothers Government/Corporate Bond Index, returned 1.76% for the quarter. PERFORMANCE During the quarter, INA Investment Securities, Inc. outperformed its market index by 0.44%, after deduction of expenses and reinvestment of dividends, based on its net asset value. The Company owed its positive performance to its significant positioning in the robust corporate and high yield sectors. PORTFOLIO ACTIVITY The portfolio remains fully invested. On September 30, 1996, corporate and foreign bonds were approximately 66.6% of portfolio holdings, U.S. government/agency securities 24.2% and cash equivalents and other assets 9.2%. Per-share net asset value was $18.52, up from $18.44 on June 30, 1996. FOURTH QUARTER DIVIDEND A quarterly dividend distribution of 31 cents per share was declared Tuesday, October 28, 1996 by the Directors of INA Investment Securities, Inc., payable December 10. This represents a reduction from the 32 cent per share rate that the Company paid in the third quarter of 1996 and the 33 cent rate paid previously since the third quarter of 1992. These adjustments were necessitated by the decline in net investment income in recent years. The decline in income has resulted from the replacement of higher coupon bonds purchased for the Company in earlier years by lower coupon issues, reflective of generally lower interest rate levels, as the original bonds have matured or have been sold for investment and credit reasons. (continued on panel 4) 1 - ------------------------------------------------------------------------------ FINANCIAL SUMMARY For the Nine Months Ended September 30 (Unaudited) (In Thousands) - -------------------------------------------------------------------------------
1996 1995 --------- ------ Net investment income $4,580 $4,766 Net realized and unrealized gain(loss) $(4,584) $6,841 Per share: Net investment income $0.96 $0.99 Dividends from net investment income 0.98 $0.99 Net asset value at end of period $18.52 $18.99
- ------------------------------------------------------------------------------- NET INVESTMENT INCOME PER SHARE For the Nine Months Ended September 30 (Unaudited) - -------------------------------------------------------------------------------
1996 1995 1994 1993 1992 - ----- ----- ----- ----- ----- $0.96 $0.99 $1.05 $1.06 $1.12
- ------------------------------------------------------------------------------- STATEMENT OF ASSETS AND LIABILITIES September 30, 1996 (Unaudited) - -------------------------------------------------------------------------------
(In Thousands) --------------- ASSETS: Investments at market value (Cost $84,533,604) $85,988 Receivable for investments sold 1,502 Interest receivable 1,477 Investment for deferred compensation (Cost $64,189) 77 Other 2 -------------- Total assets 89,046 -------------- LIABILITIES: Deferred directors' fees payable 121 Accrued advisory fees payable 42 Other accrued expenses (including $41,398 due to affiliate) 139 -------------- Total liabilities 302 -------------- NET ASSETS $88,744 ============== NET ASSET VALUE PER SHARE Applicable to 4,792,215 shares of $.10 par value capital stock outstanding (12,000,000 shares authorized) $18.52 ==============
2 - ------------------------------------------------------------------------------ STATEMENT OF OPERATIONS AND CHANGES IN NET ASSETS For the Nine Months Ended September 30, 1996 (Unaudited) - ------------------------------------------------------------------------------
(IN THOUSANDS) -------------- INVESTMENT INCOME: Interest $5,214 EXPENSES: Investment advisory fees $354 Custodian fees 58 Administrative services 47 Transfer agent fees 42 Directors' fees 42 Shareholder reports 40 Auditing and legal fees 22 State taxes 19 Other 11 635 ----- -------- NET INVESTMENT INCOME 4,579 NET REALIZED LOSS ON INVESTMENTS (1,857) UNREALIZED DEPRECIATION OF INVESTMENTS (2,726) -------- NET DECREASE IN NET ASSETS FROM OPERATIONS (4) DISTRIBUTIONS TO SHAREHOLDERS FROM NET INVESTMENT INCOME (4,696) -------- NET DECREASE IN NET ASSETS (4,700) NET ASSETS: Beginning of period 93,444 -------- End of period (includes overdistributed net investment income of $131,632) $88,744 ========
3 - -------------------------------------------------------------------------------- OUTLOOK AND STRATEGY We expect the market to react abruptly-though not always predictably-to economic data that might influence the Fed's attitude on tightening credit conditions. Any signs of an overheating economy or increasing inflation will prompt investors to drive interest rates higher in anticipation of tightening by the Fed. As data is scrutinized, choppy market conditions will once again prevail. The Company will maintain its overweighting in corporates and high yield credits as long as the economy stays healthy and investor demand continues to be strong. Should the economy show evidence of sustained above-trend growth, we will modestly reduce the portfolio duration to preserve asset value. Sincerely, /s/ R. Bruce Albro R. Bruce Albro, Chairman of the Board and President INA Investment Securities, Inc. INA Investment Securities, Inc. is a closed-end, diversified management investment company that invests primarily in debt securities. The investment adviser is CIGNA Investments, Inc., Hartford, Connecticut 06152. Shareholders may elect to have dividends automatically reinvested in additional shares of INA Investment Securities, Inc. by participating in the Automatic Dividend Investment Plan. For a brochure describing this Plan or general inquiries about your account, contact State Street Bank and Trust Company, Stock Transfer Department, P.O. Box 8200, Boston, Massachusetts, 02266-8200, or call toll-free 1-800-426-5523. 4 - -------------------------------------------------------------------------------- [CIGNA LOGO APPEARS HERE] - -------------------------------------------------------------------------------- INA Investment Securities, Inc. Third Quarter Report September 30, 1996 - -------------------------------------------------------------------------------- [CIGNA LOGO APPEARS HERE] --------------------------- BULK RATE U.S. POSTAGE PAID SO. HACKENSACK, NJ PERMIT 750 --------------------------- INA Investment Securities, Inc. P.O. Box 13856 Philadelphia, PA 19101 Printed on recycled paper 542490 -----END PRIVACY-ENHANCED MESSAGE-----