-----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, U7LUnelJ/UrD0Ryv7GNeI0OVNklWhQhxtSe1UHxultfjlWMcNaJGftZGZ0m+I4+/ 58kTjhzSFflzMhFQs4oxcg== 0000950109-96-005462.txt : 19960928 0000950109-96-005462.hdr.sgml : 19960928 ACCESSION NUMBER: 0000950109-96-005462 CONFORMED SUBMISSION TYPE: N-30B-2 PUBLIC DOCUMENT COUNT: 1 CONFORMED PERIOD OF REPORT: 19960630 FILED AS OF DATE: 19960820 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: 96618049 BUSINESS ADDRESS: STREET 1: S 217 900 COTTAGE GROVE ROAD CITY: HARTFORD STATE: CT ZIP: 06152-2217 BUSINESS PHONE: 2157612907 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 SEMI-ANNUAL REPORT TO SHAREHOLDERS 6-30-96 - -------------------------------------------------------------------------------- 1 DEAR SHAREHOLDER: We are pleased to provide this report for INA Investment Securities, Inc. covering the six months ended June 30, 1996. SECOND QUARTER PERFORMANCE The second quarter of 1996 was marked by increased interest rate volatility. The change resulted from growing investor uncertainty as to whether the economy's momentum would fuel inflation, and ultimately lead the Federal Reserve (Fed) to tighten monetary conditions. The 30-year Treasury's yield ranged from 6.60% and 7.20%, rallying to close the quarter at 6.89%. The bond market, as measured by the Lehman Brothers Government/Corporate Bond Index, returned 0.47% and -1.87%, respectively, for the quarter and year to date. COMPANY PERFORMANCE After the deduction of expenses and reinvestment of dividends, the Company, on a net asset value basis, returned 0.22% and -2.05%, respectively, for the quarter and year to date and -1.01% and -2.72%, respectively, for the quarter and year to date based on the New York Stock Exchange share prices, adjusted dividend payments. PORTFOLIO ACTIVITY Company assets remain fully invested. On June 30, 1996, corporate and foreign bonds represented approximately 61.8% of portfolio holdings, U.S. Government/agency securities 27.6%, and cash equivalents and other net assets 10.6%. Per-share net asset value was $18.44, down from $18.73 on March 31. A dividend of $.33 was declared during the second quarter. QUARTERLY DIVIDEND A quarterly dividend distribution of 32 cents per share was declared Tuesday, July 30, 1996 by the Directors of INA Investment Securities, Inc., payable September 10. This represents a reduction from the 33 cent per share quarterly rate that the Company had paid since the third quarter of 1992. This adjustment was 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. OUTLOOK The market's current rate levels are a reflection of investors' expectations that the Fed will move to tighten credit further in coming months. Mixed economic data will likely result in a continued volatile interest rate environment. Despite this uncertain backdrop, we expect corporate bonds to provide solid returns to investors. The corporate sector should continue to perform well, buoyed by broad-based investor demand and a resilient economy. Sincerely, /s/ R. Bruce Albro R. Bruce Albro, Chairman INA Investment Securities, Inc. - -------------------------------------------------------------------------------- INA INVESTMENT SECURITIES, INC. INVESTMENTS IN SECURITIES June 30, 1996 2 (Unaudited)
MARKET PRINCIPAL VALUE (000) (000) - ------------------------------------------------------------------------------ LONG-TERM BONDS - 89.4% CONSUMER AND RETAIL - 2.7% Dayton Hudson Corp., 9.75%, 2002 $ 500 $ 561 Federated Dept. Stores, Inc., 8.5%, 2003 1,000 990 Herff Jones, Inc., 11.0%, 2005 (144A security acquired Aug. 1995 for $300,000)* 300 309 Smith's Food and Drug Centers, Inc., 11.25%, 2007 500 504 ------- 2,364 ------- CONSUMER NON-CYCLICAL - .6% Tenet Healthcare Corp., 9.625%, 2002 500 531 ------- ENTERTAINMENT AND COMMUNICATIONS - 9.6% Century Communications Corp., 9.5%, 2005 500 483 Continental Cablevision, Inc., 8.3%, 2006 500 517 MFS Communications, Inc., Zero Coupon, 8.875%**, 2006 500 303 News America Holdings, Inc., 9.25%, 2013 500 544 ProNet, Inc., 10.875%, 2006 500 490 Rogers Communications, Inc., 10.875%, 2004 500 509 TKR Cable, Inc., 10.5%, 2007 500 548 Tele-Communications, Inc., 9.25%, 2002 1,000 1,063 360 Communications Co., 7.125%, 2003 1,400 1,339 Time Warner Entertainment Co., 7.25%, 2008 1,750 1,643 Vanguard Cellular Systems, Inc., 9.375%, 2006 500 484 Viacom International, Inc., 9.125%, 1999 500 510 ------- 8,433 ------- FINANCIAL - 18.0% Associates Corp. of N.A., 9.7%, 1997 3,000 3,087 Case Equipment Loan Trust 1996-A, 5.5%, 2003 2,500 2,469 Corporacion Andina De Fome, 7.1%, 2003 200 192 First Union Corp., 7.0%, 2006 1,000 972 Fleet Mortgage Group, Inc., 6.5%, 2000 1,000 982 Heller Financial, Inc., 6.56%, 1999 1,000 993 Inter-American Development Bank, 8.875%, 2009 4,000 4,586 Middletown Trust, 10.875%, 1998 390 412 The Money Store Home Loan Trust, 6.65%, 2017 1,044 1,018
MARKET PRINCIPAL VALUE (000) (000) - ------------------------------------------------------------------------ Structured Coupon Receipts, (Stripped-Interest Only), 10.203%**, 1997 (144A security acquired June 1993; amortized cost $182,444)* $ 5,314 $ 185 10.207%**, 1997 (144A security acquired June 1993; amortized cost $70,459)* 2,310 71 Western National Corp., 7.125%, 2004 1,000 975 ------- 15,942 ------- FOOD AND BEVERAGE - 3.1% Bass America, Inc., 8.125%, 2002 1,500 1,580 ConAgra, Inc., 9.75%, 2021 1,000 1,188 ------- 2,768 ------- INDUSTRIAL - 8.6% Air Products & Chemicals, Inc., 8.5%, 2006 2,000 2,131 Colt Industries, Inc., 11.25%, 2015 160 163 Fisher Scientific International, Inc., 7.125%, 2005 500 476 ICF Kaiser International, Inc., 12.0%, 2003 500 478 LaRoche Inds., Inc., 13.0%, 2004 500 530 Magma Copper Co., 12.0%, 2001 500 540 Riverwood International Corp., 10.25%, 2006 450 447 Smurfit Capital Funding PLC, 6.75%, 2005 1,000 953 Tjiwi Kimia International Finance, 13.25%, 2001 500 560 Waste Management, Inc., Zero Coupon, 6.00%,** (Lyon), 2012 2,250 849 West Point Stevens, Inc., 9.375%, 2005 500 483 ------- 7,610 ------- OIL & GAS - 5.4% Imexsa Export Trust, 10.125%, 2003 750 750 Louis Dreyfus Nat. Gas Corp., 9.25%, 2004 1,000 1,024 Mesa Operating Co., 10.625%, 2006 150 150 Sonat, Inc., 9.5%, 1999 1,000 1,070 9.0%, 2001 250 267 Transcontinental Gas Pipe Line Corp., 9.125%, 2017 1,475 1,535 ------- 4,796 -------
The Notes to Financial Statements are an integral part of these statements. - -------------------------------------------------------------------------------- INA INVESTMENT SECURITIES, INC. INVESTMENTS IN SECURITIES June 30, 1996 3 (Unaudited) (Continued)
MARKET PRINCIPAL VALUE (000) (000) - ------------------------------------------------------------------------------- TRANSPORTATION - 5.5% CSX Corp., 9.0%, 2006 $ 2,300 $ 2,555 Delta Air Lines, Inc., 10.14%, 2012 1,000 1,141 Hertz Corp., 7.0%, 2003 500 493 Japan Air Lines Co. Ltd., 11.0%, 1997 580 626 ------- 4,815 ------- UTILITIES - 8.3% Cajun Electric Power Co-op., 8.92%, 2019 500 548 9.52%, 2019 1,000 1,088 Commonwealth Edison Co., 8.125%, 2007 2,000 1,997 El Paso Electric Co., 7.25%, 1999 500 492 Endesa Overseas Chile, 7.2%, 2006 1,000 976 L S Power Funding Corp., 7.19%, 2010 (144A security acquired June 1995 for $1,000,000)* 1,000 939 Public Service Co. Colorado, 8.125%, 2004 290 304 Salton Sea Funding Corp., 7.02%, 2000 (144A security acquired June 1996 for $1,000,000)* 1,000 1,001 ------- 7,345 ------- U.S. GOVERNMENT & AGENCIES - 27.6% Federal Farm Credit Banks, 6.2%, 2008 350 325 Federal Home Loan Mortgage Corp., Series 1496, (PAC, Stripped-Interest Only), 12.194%**, 2019 3,600 500 Federal National Mortgage Assoc., 6.5%, 2008 1,163 1,133 6.5%, 2009 379 370 United States Treasury Bonds, 10.75%, 2005 1,370 1,736 12.75%, 2010 1,300 1,825 8.5%, 2020 12,270 14,308 United States Treasury Notes, 7.125%, 1999 10 10 6.625%, 2001 2,565 2,582 7.5%, 2001 550 574 7.875%, 2001 450 477 7.25%, 2004 500 518 ------- 24,358 ------- TOTAL LONG-TERM BONDS (Cost - $78,536,958) 78,962 -------
NUMBER OF SHARES OR MARKET PRINCIPAL VALUE (000) (000) - ------------------------------------------------------------------------------ PREFERRED STOCK - .8% (Cost - $667,500) Morgan Stanley Group, Inc. 15,000 $ 675 ------- SHORT-TERM OBLIGATIONS - 11.1% COMMERCIAL PAPER - 11.1% American Express Credit Corp., 5.40%, 7/8/96 $ 2,838 2,838 Avery-Dennison Corp., 5.57%, 7/1/96 2,000 2,000 Philip Morris Capital Corp., 5.33%, 7/1/96 2,500 2,500 Shell Oil Co., 5.3%, 7/8/96 2,505 2,505 ------- TOTAL SHORT-TERM OBLIGATIONS (Cost - $9,843,415) 9,843 ------- TOTAL INVESTMENTS IN SECURITIES - 101.3% (Total Cost - $89,047,873) 89,480 Liabilities, Less Cash and Other Assets - (1.3%) (1,114) ------- NET ASSETS - 100.0% (equivalent to $18.44 per share based on 4,792,215 shares outstanding) $88,366 =======
* Indicates restricted security; the aggregate value of restricted securities is $2,506,329 (aggregate cost $2,552,903) which is approximately 2.8% of net assets. Valuations have been furnished by brokers trading in the securities or a pricing service for all restricted securities. ** Effective yield as of purchase date. ---------------------------------------------------- PORTFOLIO COMPOSITION (UNAUDITED) June 30, 1996
QUALITY RATINGS* OF LONG- MARKET % OF TERM VALUE MARKET BONDS AND PREFERRED STOCK (000) VALUE ------------------------------------------- Aaa/AAA $35,628 44.6% Aa/AA 1,261 1.6% A/A 10,656 13.4% Baa/BBB 20,848 26.2% Ba/BB 6,027 7.6% B/B 5,217 6.6% ------- ----- $79,637 100.0% ======= =====
*The higher of Moody's or Standard & Poor Ratings. - ----------------------------------------------------- The Notes to Financial Statements are an integral part of these statements. - -------------------------------------------------------------------------------- INA INVESTMENT SECURITIES, INC. 4 STATEMENT OF ASSETS AND LIABILITIES JUNE 30, 1996 (Unaudited)
(IN THOUSANDS) -------------- ASSETS: Investments at market value (Cost - $89,047,873) $89,480 Cash 1 Interest receivable 1,802 Investment for deferred compensation plan 73 (Cost - $60,509) Other 2 ------- TOTAL ASSETS 91,358 ------- LIABILITIES: Payable for investments purchased 2,714 Deferred directors' fees payable 131 Accrued advisory fees payable 42 Other accrued expenses (including $24,350 due to affiliate) 105 ------- TOTAL LIABILITIES 2,992 ------- NET ASSETS (Equivalent to $18.44 per share based on 4,792,215 shares outstanding; 12,000,000 shares of $.10 par value autho- rized) $88,366 ======= COMPONENTS OF NET ASSETS: Paid in capital $89,810 Overdistributed net investment income (88) Unrealized appreciation of investments 444 Accumulated net realized loss (1,800) ------- NET ASSETS $88,366 =======
STATEMENT OF OPERATIONS FOR THE SIX MONTHS ENDED JUNE 30, 1996 (Unaudited)
(IN THOUSANDS) -------------- INVESTMENT INCOME INCOME: Interest $ 3,516 EXPENSES: Investment advisory fees $ 236 Custodian fees 38 Transfer agent fees 32 Directors' fees 32 Administrative services 28 Shareholder reports 25 State taxes 14 Auditing and Legal fees 13 Other 7 425 ----- -------- NET INVESTMENT INCOME 3,091 -------- REALIZED AND UNREALIZED LOSS ON INVESTMENTS Net realized loss from investments (1,256) Unrealized depreciation of investments (3,750) -------- NET REALIZED AND UNREALIZED LOSS ON INVESTMENTS (5,006) -------- NET DECREASE IN NET ASSETS RESULTING FROM OPERATIONS $ (1,915) ========
The Notes to Financial Statements are an integral part of these statements. - -------------------------------------------------------------------------------- INA INVESTMENT SECURITIES, INC. 5 STATEMENT OF CHANGES IN NET ASSETS (Unaudited)
FOR THE SIX MONTHS FOR THE ENDED YEAR ENDED JUNE 30, DECEMBER 31, 1996 1995 ---------- ------------ (IN THOUSANDS) ----------------------- OPERATIONS: Net investment income $ 3,091 $ 6,348 Net realized gain (loss) from investments (1,256) 1,556 Unrealized appreciation (depreciation) on investments (3,750) 7,735 ------- ------- Net increase (decrease) in net assets from operations (1,915) 15,639 DISTRIBUTIONS TO SHAREHOLDERS: From net investment income ($.66 and $1.32 per share, respectively) (3,163) (6,326) ------- ------- NET INCREASE (DECREASE) IN NET ASSETS (5,078) 9,313 NET ASSETS: Beginning of period 93,444 84,131 ------- ------- End of period (Including overdistributed net invest- ment income of $88,494 and $15,270, respectively) $88,366 $93,444 ======= =======
The Notes to Financial Statements are an integral part of these statements. - -------------------------------------------------------------------------------- INA INVESTMENT SECURITIES, INC. NOTES TO FINANCIAL STATEMENTS (Unaudited) 6 1. SIGNIFICANT ACCOUNTING POLICIES. INA Investment Securities, Inc. (the "Company") is registered under the Investment Company Act of 1940, as amended, as a diversified, closed-end management investment company. The fund's objective is to generate income and obtain capital appreciation by investing at least 85% of its total assets in investment grade debt securities and preferred stocks. The preparation of financial statements in accordance with generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts and disclosures in the financial statements. The following is a summary of significant accounting policies consistently followed by the Company in the preparation of its financial statements. A. SECURITY VALUATION -- Debt securities traded in the over-the-counter market, including listed securities whose primary markets are believed to be over-the- counter, are valued on the basis of valuations furnished by brokers trading in the securities or a pricing service, which determines valuations for normal, institutional-size trading units of such securities using market information, transactions for comparable securities and various relationships between securities which are generally recognized by institutional traders. Short-term investments with remaining maturities of up to and including 60 days are valued at amortized cost, which approximates market. Short-term investments that mature in more than 60 days are valued at current market quotations. Other securities and assets of the Company are appraised at fair value as determined in good faith by, or under the authority of, the Company's Board of Directors. B. SECURITY TRANSACTIONS AND RELATED INVESTMENT INCOME -- Security transactions are accounted for on the trade date (date the order to buy or sell is executed). Dividend income is recorded on the ex-dividend date, and interest income is recorded on the accrual basis. The Company does not amortize premiums or discounts for book purposes, except for original issue discounts which are amortized over the life of the respective securities. Securities gains or losses are determined on the basis of identified cost. The cost for Federal income tax purposes is substantially the same. C. FEDERAL TAXES -- It is the Company's policy to continue to comply with the requirements of the Internal Revenue Code applicable to regulated investment companies and to distribute all of its taxable income or capital gains, if any, to its shareholders. Therefore, no Federal income or excise taxes on realized income have been accrued. D. DIVIDENDS AND DISTRIBUTIONS TO SHAREHOLDERS -- Dividends and distributions are recorded by the Company on the ex-dividend date. Payments in excess of financial accounting income due to differences between financial and tax accounting, to meet the distribution requirements for tax basis income, are deducted from paid in capital when such differences are determined to be permanent. 2. INVESTMENT ADVISORY FEES AND OTHER TRANSACTIONS WITH AFFILIATES. Investment advisory fees were paid or accrued to CIGNA Investments, Inc. (CII), certain officers and directors of which are affiliated with the Company. Such advisory fees are based on an annual rate of 0.55% of the first $75 million of average weekly net asset value and 0.4% thereafter. The Company reimburses CII for a portion of the compensation and related expenses of the Company's Treasurer and Secretary and certain persons who assist in carrying out the responsibilities of those offices. For the six months ended June 30, 1996, the Company paid or accrued $27,944. - -------------------------------------------------------------------------------- INA INVESTMENT SECURITIES, INC. NOTES TO FINANCIAL STATEMENTS (Unaudited) 7 (Continued) CII is an indirect, wholly-owned subsidiary of CIGNA Corporation. 3. DIRECTORS' FEES. Directors' fees represent remuneration paid or accrued to directors who are not employees of CIGNA Corporation or any of its affiliates. Directors may elect to defer receipt of all or a portion of their fees which are invested in mutual fund shares in accordance with a deferred compensation plan. 4. PURCHASES AND SALES OF SECURITIES. Purchases and sales of securities for the six months ended June 30, 1996 were as follows (excluding short-term obligations):
PROCEEDS COST OF FROM SECURITIES SECURITIES PURCHASED SOLD ----------- ----------- Bonds $17,439,505 $21,505,532 U.S. Government Obligations 14,840,855 15,629,329 Preferred Stock 667,500 -- ----------- ----------- $32,947,860 $37,134,861 =========== ===========
As of June 30, 1996, the cost of securities for Federal income tax purposes was $89,047,873. At June 30, 1996, unrealized appreciation for Federal income tax purposes aggregated $432,213 of which $2,118,481 related to appreciated securities and $1,686,268 related to depreciated securities. 5. CAPITAL LOSS CARRYOVER. At December 31, 1995, the Company had a capital loss carryover for Federal income tax purposes of $306,433 which expires in 2002. Under current tax law, capital losses realized after October 31 may be deferred and treated as occurring on the first day of the following year. For the year ended December 31, 1995, the Company has elected to defer $236,694 of capital losses occurring between November 1, 1995 and December 31, 1995 under these rules. Such deferred losses will be treated as arising on the first day of the year ended December 31, 1996. - -------------------------------------------------------------------------------- INA INVESTMENT SECURITIES, INC. NOTES TO FINANCIAL STATEMENTS (Unaudited) 8 (Continued) 5. FINANCIAL HIGHLIGHTS. The following table includes data, ratios and supplemental data for a share outstanding throughout each period and other performance information: - --------------------------------------------------------------------------------
(UNAUDITED) SIX MOS. ENDED JUNE 30, YEAR ENDED DECEMBER 31, 1996 1995 1994 1993 1992 1991 - ----------------------------------------------------------------------------------- PER SHARE OPERATING PERFORMANCE: NET ASSET VALUE, BEGINNING OF PERIOD $ 19.50 $17.56 $ 19.72 $ 18.75 $ 18.85 $ 17.25 ------- ------- ------- ------- ------- ------- INCOME FROM INVESTMENT OPERATIONS Net investment income (1) 0.64 1.32 1.39 1.39 1.49 1.51 Net realized and unrealized gain (loss) (1.04) 1.94 (2.00) 1.01 (0.11) 1.61 ------- ------- ------- ------- ------- ------- TOTAL FROM INVESTMENT OPERATIONS (0.40) 3.26 (0.61) 2.40 1.38 3.12 ------- ------- ------- ------- ------- ------- LESS DISTRIBUTIONS: From net investment income (0.66) (1.32) (1.35) (1.43) (1.48) (1.52) From capital gains -- -- (0.20) -- -- -- ------- ------- ------- ------- ------- ------- TOTAL DISTRIBUTIONS (0.66) (1.32) (1.55) (1.43) (1.48) (1.52) ------- ------- ------- ------- ------- ------- NET ASSET VALUE, END OF PERIOD $ 18.44 $ 19.50 $ 17.56 $ 19.72 $ 18.75 $ 18.85 ======= ======= ======= ======= ======= ======= MARKET VALUE, END OF PERIOD $ 16.25 $ 17.38 $ 15.25 $ 18.25 $ 17.25 $ 17.75 ======= ======= ======= ======= ======= ======= TOTAL INVESTMENT RETURN: Per share market value (2.72)% 23.07% (8.34)% 14.21% 5.39% 30.21% Per share net asset value (2) (2.05)% 19.17% (3.13)% 13.03% 7.64% 18.99% RATIOS AND SUPPLEMENTAL DATA: Net assets, end of period (000 omitted) $88,366 $93,444 $84,131 $94,482 $89,839 $90,345 Ratio of operating expenses to average net assets 0.47% 1.00% 0.96% 0.96% 0.90% 0.93% Ratio of net investment income to average net assets 3.43% 7.10% 7.42% 7.03% 7.96% 8.49% Portfolio turnover 38% 158% 86% 159% 41% 72%
(1) Net investment income per share has been calculated in accordance with SEC requirements, with the exception that end of year accumulated undistributed/(overdistributed) net investment income has not been adjusted to reflect current year permanent differences between financial and tax ac- counting. (2) Total investment return based on per share net asset value reflects the ef- fects of changes in net asset value on the performance of the Company dur- ing each year, and assumes distributions were reinvested at net asset val- ue. These percentages do not correspond with the performance of a share- holder's investment in the Company based on market value since the rela- tionship between the market price of the stock and net asset value varied during each period. - -------------------------------------------------------------------------------- INA INVESTMENT SECURITIES, INC. NOTES TO FINANCIAL STATEMENTS (Unaudited) 9 (Continued) 6. QUARTERLY RESULTS (UNAUDITED). The following is a summary of quarterly results of operations (in thousands except for per share amounts): - --------------------------------------------------------------------------------
NET REALIZED AND UNREALIZED GAIN (LOSS) INVESTMENT INCOME NET INVESTMENT INCOME ON INVESTMENTS NET ASSETS PERIOD ENDED TOTAL PER SHARE TOTAL PER SHARE TOTAL PER SHARE INCR. (DECR.) PER SHARE - --------------------------------------------------------------------------------------------------------------------- March 31, 1994 $ 1,796 $ .37 $ 1,577 $ .33 $ (4,590) $ (.96) $(4,594) $(.96) June 30, 1994 1,983 .41 1,774 .37 (2,251) (.47) (2,059) (.43) September 30, 1994 1,872 .39 1,659 .34 (1,252) (.26) (2,025) (.43) December 31, 1994 1,853 .39 1,636 .35 (1,474) (.31) (1,673) (.34) March 31, 1995 1,782 .37 1,567 .33 2,529 .53 2,515 .52 June 30, 1995 1,821 .38 1,600 .33 3,603 .75 3,622 .76 September 30, 1995 1,820 .38 1,599 .33 709 .15 726 .15 December 31, 1995 1,813 .38 1,582 .33 2,450 .51 2,450 .51 March 31, 1996 1,798 .38 1,581 .33 (3,706) (.77) (3,706) (.77) June 30, 1996 1,718 .36 1,510 .32 (1,300) (.27) (1,372) (.29)
[THIS PAGE INTENTIONALLY LEFT BLANK] - -------------------------------------------------------------------------------- INA Investment Securities, Inc. Directors R. Bruce Albro Senior Managing Director, CIGNA Investments, Inc. Hugh R. Beath Advisory Director, AdMedia Corporate Advisors, Inc. Russell H. Jones Vice President, Kaman Corporation Paul J. McDonald Executive Vice President, Finance and Chief Financial Officer, Friendly Ice Cream Corporation Arthur C. Reeds III President, CIGNA Investment Management and CIGNA Investments, Inc. Officers R. Bruce Albro Chairman of the Board and President Alfred A. Bingham III Vice President and Treasurer Lawrence S. Harris Vice President Jeffrey S. Winer Vice President and Secretary - -------------------------------------------------------------------------------- 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. - -------------------------------------------------------------------------------- Matters Submitted to a Vote of Shareholders An Annual Meeting of the Shareholders of INA Investment Securities, Inc. (the "Company") was held on Tuesday April 30, 1996 at 2:00 p.m., Eastern Time. Five Directors were elected by a vote of shareholders to serve as members of the Board of the Fund until the next Annual Meeting of Shareholders or until the election and qualification of their successors. Shareholders of the Company voted to elect the following Directors:
For Vote Withheld --- ------------- R. Bruce Albro 3,804,401.546 57,267.327 Hugh R. Beath 3,793,241.270 68,427.603 Russell H. Jones 3,796,238.694 65,430.179 Paul J. McDonald 3,796,255.308 65,413.565 Arthur C. Reeds, III 3,805,503.970 56,164.000
The appointment of Price Waterhouse LLP to serve as independent accountants for the fiscal year ending December 31, 1996 was ratified by a vote of shareholders of the Company as follows:
For Against Abstain --- ------- ------- 3,788,836.819 33,596.845 39,235.209
There were no broker non-votes with respect to the matters submitted to a vote of shareholders of the Company. No other business was transacted at the meeting. - -------------------------------------------------------------------------------- [CIGNA LOGO APPEARS HERE] - -------------------------------------------------------------------------------- INA Investment Securities, Inc. Semiannual Report June 30, 1996 - -------------------------------------------------------------------------------- ---------------------- [CIGNA LOGO APPEARS HERE] BULK RATE U.S. POSTAGE PAID INA Investment Securities, Inc. SO. HACKENSACK, NJ P.O. Box 13856 PERMIT 750 Philadelphia, PA 19101 ---------------------- -----END PRIVACY-ENHANCED MESSAGE-----